As filed with the Securities and Exchange Commission on May 8, 2009
Registration No. 333-
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
FORM S-3
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
ENDOLOGIX, INC.
(Exact name of registrant as specified in its charter)
|
|
|
Delaware
(State or other jurisdiction of incorporation or organization)
|
|
68-0328265
(I.R.S. Employer Identification No.)
|
11 Studebaker, Irvine, California 92618
(949) 595-7200
(Address, including zip code, and telephone number, including area code, of registrants principal executive offices)
John McDermott
Chief Executive Officer
Endologix, Inc.
11 Studebaker, Irvine, California 92618
(949) 595-7200
(Name, address, including zip code, and telephone number, including area code, of agent for service)
Copy to
:
Lawrence B. Cohn
Michael A. Hedge
Stradling Yocca Carlson & Rauth
660 Newport Center Drive, Suite 1600
Newport Beach, California 92660
(949) 725-4000
Approximate date of commencement of proposed sale to the public:
From time to time after the
effective date of this Registration Statement
.
If the only securities being registered on this form are being offered pursuant to dividend or
interest reinvestment plans, please check the following box.
o
If any of the securities being registered on this Form are to be offered on a delayed or
continuous basis pursuant to Rule 415 under the Securities Act of 1933, other than securities
offered only in connection with dividend or interest reinvestment plans, check the following box.
þ
If this Form is filed to register additional securities for an offering pursuant to
Rule 462(b) under the Securities Act, please check the following box and list the Securities Act
registration statement number of the earlier effective registration statement for the same
offering.
o
If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities
Act, check the following box and list the Securities Act registration statement number of the
earlier effective registration statement for the same offering.
o
If this Form is a registration statement pursuant to General Instruction I.D. or a
post-effective amendment thereto that shall become effective upon filing with the Commission
pursuant to Rule 462(e) under the Securities Act, check the following box.
o
If this Form is a post-effective amendment to a registration statement filed pursuant to
General Instruction I.D. filed to register additional securities or additional classes of
securities pursuant to Rule 413(b) under the Securities Act, check the following box.
o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated
filer, a non-accelerated filer, or a smaller reporting company. See the definitions of large
accelerated filer, accelerated filer, and smaller reporting company in Rule 12b-2 of the
Exchange Act. (Check one):
|
|
|
|
|
|
|
Large accelerated filer
o
|
|
Accelerated filer
þ
|
|
Non-accelerated filer
o
(Do not check if a smaller reporting company)
|
|
Smaller reporting company
o
|
CALCULATION OF REGISTRATION FEE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proposed Maximum
|
|
|
Amount of
|
|
|
|
|
|
Aggregate Offering
|
|
|
Registration Fee
|
|
|
Title of Each Class of Securities to be Registered (1)
|
|
|
Price (2)
|
|
|
(3)
|
|
|
Common Stock, par value $0.001 per share
|
|
|
|
|
|
|
|
|
Preferred Stock, par value $0.001 per share
|
|
|
|
|
|
|
|
|
Debt Securities
|
|
|
|
|
|
|
|
|
Warrants
|
|
|
|
|
|
|
|
|
Total
|
|
|
$50,000,000
|
|
|
$2,790
|
|
|
|
|
|
(1)
|
|
There are being registered hereunder such indeterminate number of shares of common
stock and preferred stock, such indeterminate principal amount of debt securities, and such
indeterminate number of warrants to purchase common stock, preferred stock or debt securities
as shall have an aggregate initial offering price not to exceed $50,000,000. If any debt
securities are issued at an original issue discount, then the offering price of such debt
securities shall be in such greater principal amount as shall result in an aggregate initial
offering price not to exceed $50,000,000, less the aggregate dollar amount of all securities
previously issued hereunder. This registration statement also registers such indeterminate
amount of securities as may be issued upon conversion of, or in exchange for, the securities
registered and, pursuant to Rule 416(a) under the Securities Act of 1933, as amended (the
Securities Act), such indeterminable number of shares as may be issued from time to time
upon conversion or exchange as a result of stock splits, stock dividends or similar
transactions.
|
|
(2)
|
|
The proposed maximum aggregate offering price per class of security will be
determined from time to time by the registrant in connection with the issuance by the
registrant of the securities registered hereunder and is not specified as to each class of
security pursuant to General Instruction II.D. of Form S-3 under the Securities Act.
|
|
(3)
|
|
Calculated pursuant to Rule 457(o) of the Securities Act, based on the proposed
maximum aggregate offering price of the securities listed.
|
The registrant hereby amends this registration statement on such date or dates as may be
necessary to delay its effective date until the registrant shall file a further amendment which
specifically states that this registration statement shall thereafter become effective in
accordance with
Section 8(a)
of the Securities Act of 1933 or until the registration statement
shall become effective on such date as the Commission acting pursuant to said Section
8(a)
, may
determine.
The information in this prospectus is not complete and may be changed. We may not sell these
securities until the Securities and Exchange Commission declares our registration statement
effective. This prospectus is not an offer to sell these securities and is not soliciting an offer
to buy these securities in any state where the offer or sale is not permitted.
Subject to Completion, dated May 8, 2009
$50,000,000
COMMON STOCK
PREFERRED STOCK
DEBT SECURITIES
WARRANTS
This prospectus relates to common stock, preferred stock, debt securities, and warrants for
debt or equity securities that we may sell from time to time in one or more transactions. The
aggregate public offering price of the securities we may sell in these transactions will not exceed
$50,000,000. We will provide the specific terms and conditions of these transactions and the
securities we may sell in supplements to this prospectus prepared in connection with each
transaction. The applicable prospectus supplement will contain information, where applicable, as to
other listings, if any, on The NASDAQ Global Market or any securities exchange of the securities
covered by the prospectus supplement. Any such prospectus supplement may also add, update or change
information in this prospectus. We may also authorize one or more free writing prospectuses to be
provided to you in connection with these offerings. You should read this prospectus, any applicable
prospectus supplement and any related free writing prospectuses, as well as the documents
incorporated by reference or deemed to be incorporated by reference into this prospectus, carefully
before you invest.
This prospectus may not be used to offer or sell securities unless accompanied
by a prospectus supplement.
Our principal executive offices are located at 11 Studebaker, Irvine, California, 92618, and
our telephone number is (949) 595-7200.
Our common stock currently is traded on The NASDAQ Global Market under the symbol ELGX. On
May 7, 2009, the closing price of our common stock was $2.28 per share.
Investing in these securities involves a high degree of risk. Before deciding whether to
invest in these securities, you should consider carefully the risks that we have described on page
2 of this prospectus under the caption Risk Factors. We may also include specific risk factors
in supplements to this prospectus under the caption Risk Factors.
These securities may be sold directly by us to investors, through agents designated from time
to time or to or through underwriters or dealers. For additional information on the methods of
sale, you should refer to the section entitled Plan of Distribution in this prospectus. If any
underwriters are involved in the sale of these securities with respect to which this prospectus is
being delivered, the names of such underwriters and any applicable commissions or discounts and
over-allotment options will be set forth in a prospectus supplement. The price to the public of
such securities and the net proceeds that we expect to receive from such sale will also be set
forth in a prospectus supplement.
Neither the Securities and Exchange Commission nor any state securities commission has
approved or disapproved of our common stock or determined if this prospectus is truthful or
complete. Any representation to the contrary is a criminal offense
.
The date of this prospectus is
___, 2009.
ABOUT THIS PROSPECTUS
This prospectus is part of a registration statement that we filed with the Securities and
Exchange Commission, or the SEC, utilizing a shelf registration process. Under this shelf
registration process, we may, from time to time, sell common stock, preferred stock, debt
securities and warrants for debt and equity securities in one or more transactions. The aggregate
public offering price of the securities we sell in these transactions will not exceed $50,000,000.
This prospectus provides you with a general description of the securities we may sell in these
transactions. Each time we sell any securities under this prospectus, we will provide a prospectus
supplement that will contain specific information about the terms of that offering. The prospectus
supplement also may add, update or change information contained in this prospectus. We may also
authorize one or more free writing prospectuses to be provided to you that may contain material
information relating to these offerings.
This prospectus does not contain all of the information included in the registration statement
we filed with the SEC. For further information about us or the securities offered hereby, you
should carefully read this prospectus, any applicable prospectus supplement, any related free
writing prospectuses, the information and documents incorporated herein by reference and the
additional information under the heading Where You Can Find Additional Information before making
an investment decision.
You should rely only on the information contained or incorporated by reference in this
prospectus, any applicable prospectus supplement and any related free writing prospectuses that we
may authorize to be provided to you. We have not authorized any other person to provide you with
different information. If anyone provides you with different or inconsistent information, you
should not rely on it. This prospectus and the accompanying supplement to this prospectus are not
an offer to sell these securities and it is not soliciting an offer to buy these securities in any
jurisdiction where the offer or sale is not permitted. You should assume that the information
appearing in this prospectus, any applicable prospectus supplement or any related free writing
prospectuses, as well as information we have previously filed with the SEC and incorporated by
reference, is accurate only as of the date on the cover of those documents. Our business, financial
condition, results of operations and prospects may have changed since those dates.
This prospectus may not be used to consummate sales of any of these securities unless it is
accompanied by a prospectus supplement. To the extent there are inconsistencies between any
prospectus supplement, this prospectus and/or any documents incorporated by reference, the document
with the most recent date will control.
ABOUT ENDOLOGIX, INC.
We develop, manufacture, market and sell innovative treatments for aortic disorders. Our
principle product, the Powerlink
®
System is a minimally invasive device for the treatment of
abdominal aortic aneurysm, or AAA. AAA is a weakening of the wall of the aorta, the largest artery
of the body. Once AAA develops, it continues to enlarge and if left untreated becomes increasingly
susceptible to rupture. The overall patient mortality rate for ruptured AAAs is approximately 75%,
making it a leading cause of death in the United States today.
The Powerlink System is a catheter and endoluminal stent graft, or ELG, system. The device
consists of a self-expanding cobalt chromium alloy stent cage covered by ePTFE, a common surgical
graft material. The Powerlink ELG is implanted in the abdominal aorta, which is accessed through
the femoral artery. Once the Powerlink ELG is deployed into its proper position, blood flow is
shunted away from the weakened or aneurismal section of the aorta, reducing pressure and the
potential for the aorta to rupture. Our clinical trials demonstrated that implantation of our
products reduces the mortality and morbidity rates associated with conventional AAA surgery, and
provides a clinical alternative for many patients who could not undergo conventional surgery. Sales
of our Powerlink System in the United States, Europe, Japan, and Latin America is the primary
source of our reported revenues.
More comprehensive information about our products and us is available through our website at
www.endologix.com. The information on our website is not incorporated by reference into this
prospectus. Our main offices are located at 11 Studebaker, Irvine, California, 92618, and our
telephone number is (949) 595-7200.
1
RISK FACTORS
Before making an investment decision, you should carefully consider the risks described under
Risk Factors in the applicable prospectus supplement and in our most recent Annual Report on
Form 10-K, or any updates in our Quarterly Reports on Form 10-Q, together with all of the other
information appearing in this prospectus or incorporated by reference into this prospectus and any
applicable prospectus supplement, in light of your particular investment objectives and financial
circumstances. Our business, financial condition or results of operations could be materially
adversely affected by any of these risks. The trading price of our common stock could decline due
to any of these risks, and you may lose all or part of your investment.
NOTE REGARDING FORWARD-LOOKING STATEMENTS
This prospectus, any prospectus supplement, any related free writing prospectuses and the
documents incorporated by reference herein include forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of
the Securities Exchange Act of 1934, as amended, or the Exchange Act. Forward-looking statements
are those that predict or describe future events or trends and that do not relate solely to
historical matters. You can generally identify forward-looking statements as statements containing
the words believe, expect, will, anticipate, intend, estimate, project, plan,
assume or other similar expressions, or negatives of those expressions, although not all
forward-looking statements contain these identifying words. All statements contained or
incorporated by reference in this prospectus, any prospectus supplement and any related free
writing prospectuses regarding our future strategy, future operations, projected financial
position, estimated future revenues, projected costs, future prospects, the future of our
industries and results that might be obtained by pursuing managements current plans and objectives
are forward-looking statements.
You should not place undue reliance on our forward-looking statements because the matters they
describe are subject to known and unknown risks, uncertainties and other unpredictable factors,
many of which are beyond our control. Our forward-looking statements are based on the information
currently available to us and speak only as of the date on the cover of this prospectus, the date
of any prospectus supplement, the date of any related free writing prospectus or, in the case of
forward-looking statements incorporated by reference, as of the date of the filing that includes
the statement. New risks and uncertainties arise from time to time, and it is impossible for us to
predict these matters or how they may affect us. Over time, our actual results, performance or
achievements will likely differ from the anticipated results, performance or achievements that are
expressed or implied by our forward-looking statements, and such difference might be significant
and materially adverse to our security holders. We do not undertake and specifically decline any
obligation to update any forward-looking statements or to publicly announce the results of any
revisions to any statements to reflect new information or future events or developments.
We have identified some of the important factors that could cause future events to differ from
our current expectations and they are described in this prospectus and supplements to this
prospectus under the caption Risk Factors as well as in our most recent Annual Report on
Form 10-K, including, without limitation, under the captions Risk Factors and Managements
Discussion and Analysis of Financial Condition and Results of Operations and in other documents
that we may file with the SEC, all of which you should review carefully. Please consider our
forward-looking statements in light of those risks as you read this prospectus, any prospectus
supplement and any related free writing prospectuses.
RATIO OF EARNINGS TO FIXED CHARGES
Our earnings were insufficient to cover fixed charges in each of the years in the five-year
period ended December 31, 2008 and in the three months ended March 31, 2009. For the periods
indicated in the foregoing sentence, we had no outstanding shares of preferred stock with required
dividend payments. Our deficiency of earnings available to cover fixed charges for the years ended
December 31, 2008, 2007, 2006, 2005 and 2004 and the three months ended March 31, 2009 was, in each
case, $(11,992,000), $(15,075,000), $(17,543,000), $(15,518,000), $(9,683,000) and ($1,177,000),
respectively. Since earnings were insufficient to cover fixed charges for the five-year period
ended December 31, 2008 and the three months ended March 31, 2009, we are unable to provide ratios
of earnings to fixed charges for each respective period.
2
USE OF PROCEEDS
We will retain broad discretion over the use of the net proceeds from the sale of any of the
securities offered under this prospectus. Unless otherwise indicated in any applicable prospectus
supplement or in any free writing prospectuses in connection with a specific offering, we intend to
use any net proceeds from the sale of such securities for our operations and for other general
corporate purposes, including, but not limited to, working capital, development of our products,
strategic acquisitions and other transactions, and other general corporate purposes. Pending our
use of the net proceeds as described above, we intend to invest the net proceeds in
investment-grade, interest-bearing securities.
3
DESCRIPTION OF CAPITAL STOCK WE MAY OFFER
General
Our authorized capital stock consists of 60,000,000 shares of common stock, par value $0.001
per share, and 5,000,000 shares of preferred stock, par value $0.001 per share. As of May 5, 2009,
there were 43,895,449 shares of common stock outstanding and no shares of preferred stock
outstanding.
The following description of our common stock and preferred stock, together with the
additional information included in any applicable prospectus supplements or related free writing
prospectuses, summarizes the material terms and provisions of these types of securities, but it is
not complete. For the complete terms of our common stock and preferred stock, please refer to our
amended and restated certificate of incorporation, as amended, and our amended and restated bylaws
that are incorporated by reference into the registration statement which includes this prospectus
and, with respect to preferred stock, any certificate of designation that we may file with the SEC
for a series of preferred stock we may designate, if any.
We will describe in a prospectus supplement or related free writing prospectuses, the specific
terms of any common stock or preferred stock we may offer pursuant to this prospectus. If indicated
in a prospectus supplement, the terms of such common stock or preferred stock may differ from the
terms described below.
Common Stock
The holders of our common stock are entitled to one vote for each share held of record on all
matters submitted to a vote of the stockholders. The holders of common stock are not entitled to
cumulative voting rights with respect to the election of directors, and as a consequence, minority
stockholders will not be able to elect directors on the basis of their votes alone.
Subject to preferences that may be applicable to any then outstanding shares of preferred
stock, holders of common stock are entitled to receive ratably such dividends as may be declared by
the board of directors out of funds legally available therefor. In the event of a liquidation,
dissolution or winding up of us, holders of the common stock are entitled to share ratably in all
assets remaining after payment of liabilities and the liquidation preferences of any then
outstanding shares of preferred stock. Holders of common stock have no preemptive rights and no
right to convert their common stock into any other securities. There are no redemption or sinking
fund provisions applicable to our common stock. All outstanding shares of common stock are, and all
shares of common stock to be issued under this prospectus will be, fully paid and non-assessable.
The rights, preferences and privileges of holders of our common stock are subject to, and may be
adversely affected by, the rights of the holders of shares of any of our outstanding preferred
stock.
Our common stock is listed on The NASDAQ Global Market under the symbol ELGX. The transfer
agent and registrar for our common stock is American Stock Transfer and Trust Company.
Dividends
We have not declared any cash dividends on our common stock and we do not anticipate paying
any cash dividends on our common stock in the foreseeable future.
Preferred Stock
Our amended and restated certificate of incorporation, as amended, provides that our board of
directors has the authority, without further action by the stockholders, to issue up to 5,000,000
shares of preferred stock in one or more series and to fix the number of shares constituting any
series or the designation of a series and to determine or alter for each series or designation of a
series the voting powers, if any, and the designations, preferences, and relative, participating,
optional, or other rights, and the qualifications, limitations or restrictions, of any series or
the designation of a series. It is not possible to state the actual effect of the issuance of any
shares of preferred stock upon the rights of holders of the common stock until the board of
directors determines the specific rights of the
4
holders of this preferred stock. However, the effects might include, among other things:
restricting dividends on the common stock; diluting the voting power of the common stock; impairing
the liquidation rights of the common stock; or delaying or preventing a change in control of our
company without further action by the stockholders.
Prior to the issuance of shares of each series of preferred stock, the board of directors is
required by the General Corporation Law of the State of Delaware, or the DGCL, and our amended and
restated certificate of incorporation, as amended, to adopt resolutions and file a certificate of
designation with the Secretary of State of the State of Delaware. The certificate of designation
fixes for each class or series of preferred stock the rights, preferences, and privileges of such
class or series.
Whenever preferred stock is to be sold pursuant to this prospectus, we will file a prospectus
supplement or related free writing prospectuses relating to that sale which will specify:
|
|
|
the title and stated value of the preferred stock;
|
|
|
|
|
the number of shares of the preferred stock offered, the liquidation preference per
share and the offering price of the preferred stock;
|
|
|
|
|
the dividend rate, period and payment date and method of calculation for dividends;
|
|
|
|
|
whether dividends are cumulative or non-cumulative and, if cumulative, the date from
which dividends on the preferred stock will accumulate;
|
|
|
|
|
the procedures for any auction and remarketing, if any;
|
|
|
|
|
the provisions for a sinking fund, if any, for the preferred stock;
|
|
|
|
|
any listing of the preferred stock on any securities exchange;
|
|
|
|
|
the provision for redemption, if applicable, of the preferred stock;
|
|
|
|
|
the terms and conditions, if applicable, upon which the preferred stock will be
convertible into any other class or classes of capital stock, including the conversion
price or manner of calculation and conversion period;
|
|
|
|
|
voting rights, if any, of the preferred stock;
|
|
|
|
|
preemption rights, if any;
|
|
|
|
|
discussion of any material or special U.S. federal income tax considerations
applicable to the preferred stock;
|
|
|
|
|
the relative ranking and preferences of the preferred stock as to dividend rights
and rights upon the liquidation, dissolution or winding up of our affairs;
|
|
|
|
|
any limitations on issuance of any class or series of preferred stock ranking senior
to or on a parity with the series of preferred stock as to dividend rights and rights
if we liquidate, dissolve or wind up our affairs; and
|
|
|
|
|
any other specific terms, preferences, rights or limitations of, or restrictions on,
the preferred stock.
|
5
The DGCL provides that the holders of preferred stock will have the right to vote separately
as a class on any proposed fundamental change in the rights of the preferred stock. This right is
in addition to any voting rights that may be provided for in the applicable certificate of
designation.
All shares of preferred stock offered by this prospectus will, when issued, be fully paid and
nonassessable and will not have any preemptive or similar rights.
Our board of directors could authorize the issuance of additional shares of preferred stock
with terms and conditions that could have the effect of discouraging a takeover or other
transaction that might involve a premium price for holders of the shares, or that holders might
believe to be in their best interests.
Anti-Takeover Provisions
As a corporation organized under the laws of the State of Delaware, we are subject to Section
203 of the DGCL, which restricts our ability to enter into business combinations with an interested
stockholder or a stockholder owning 15% or more of our outstanding voting stock, or that
stockholders affiliates or associates, for a period of three years. These restrictions do not
apply if:
|
|
|
prior to becoming an interested stockholder, our board of directors approves either
the business combination or the transaction in which the stockholder becomes an
interested stockholder;
|
|
|
|
|
upon consummation of the transaction in which the stockholder becomes an interested
stockholder, the interested stockholder owns at least 85% of our voting stock
outstanding at the time the transaction commenced, subject to exceptions; or
|
|
|
|
|
on or after the date a stockholder becomes an interested stockholder, the business
combination is both approved by our board of directors and authorized at an annual or
special meeting of our stockholders by the affirmative vote of at least two-thirds of
the outstanding voting stock not owned by the interested stockholder.
|
Each of our amended and restated certificate of incorporation, as amended, and amended and
restated bylaws also include a number of other provisions that may have the effect of deterring
hostile takeovers or delaying or preventing changes in control or our management. First, our
amended and restated certificate of incorporation, as amended, and amended and restated bylaws
provide for a classified board of directors comprised of three classes of directors with each class
serving a staggered three-year term. Under Delaware law, directors of a corporation with a
classified board may be removed only for cause unless the corporations certificate of
incorporation provides otherwise. Our amended and restated certificate of corporation, as amended,
does not provide otherwise. Second, our amended and restated bylaws provide that all stockholder
action must be effected at a duly called meeting of stockholders and not by a consent in writing.
Third, our amended and restated bylaws provide that stockholders seeking to present proposals
before a meeting of stockholders or to nominate candidates for election as directors at a meeting
of stockholders must provide timely notice in writing. Our amended and restated bylaws also specify
requirements as to the form and content of a stockholders notice. These provisions may delay or
preclude stockholders from bringing matters before a meeting of stockholders or from making
nominations for directors at a meeting of stockholders, which could delay or deter takeover
attempts or changes in management. Fourth, our amended and restated certificate of incorporation,
as amended, provides that all vacancies, including newly created directorships, may, except as
otherwise required by law, be filled by the affirmative vote of a majority of our directors then in
office, even if less than a quorum. Fifth, our board of directors has the authority to issue
preferred stock, which could potentially be used to discourage attempts by third parties to obtain
control of us through a merger, tender offer, proxy or consent solicitation or otherwise, by making
those attempts more difficult to achieve or more costly.
6
DESCRIPTION OF DEBT SECURITIES WE MAY OFFER
This prospectus describes the general terms and provisions of our debt securities. When we
offer to sell a particular series of debt securities, we will provide the specific terms of the
series in a prospectus supplement or any related free writing prospectuses relating to the series,
including any pricing supplement. Accordingly, for a description of the terms of any series of debt
securities, you must refer to the prospectus supplement and any free writing prospectuses relating
to that series and the description of the debt securities in this prospectus. To the extent the
information contained in the prospectus supplement differs from this summary description, you
should rely on the information in the prospectus supplement.
The debt securities offered by this prospectus will be issued under an indenture between us
and the trustee, for one or more series of debt securities designated in the applicable prospectus
supplement. The indenture is subject to, and governed by, the Trust Indenture Act of 1939, as
amended. We incorporate by reference the form of indenture as an exhibit to the registration
statement of which this prospectus forms a part and you should read the indenture carefully for the
provisions that may be important to you. We have summarized selected portions of the indenture
below. The summary is not complete. Terms used in the summary and not defined in this prospectus
have the meanings specified in the indenture.
General
We may offer under this prospectus up to $50,000,000 in aggregate principal amount of secured
or unsecured debt securities, or if debt securities are issued at a discount, or in a foreign
currency or composite currency, such principal amount as may be sold for an initial public offering
price of up to $50,000,000. The debt securities may be either senior debt securities, senior
subordinated debt securities or subordinated debt securities.
We can issue an unlimited amount of debt securities under the indenture that may be in one or
more series with the same or various maturities, at par, at a premium or at a discount. The terms
of each series of debt securities will be established by or pursuant to a resolution of our board
of directors and detailed or determined in the manner provided in a board of directors resolution,
an officers certificate or by a supplemental indenture.
We will set forth in a prospectus supplement (including any pricing supplement) and any free
writing prospectuses relating to any series of debt securities being offered, the initial offering
price, the aggregate principal amount and the following terms of the debt securities:
|
|
|
the title of the debt securities;
|
|
|
|
|
the price or prices (expressed as a percentage of the aggregate principal amount) at
which we will sell the debt securities;
|
|
|
|
|
any limit on the aggregate principal amount of the debt securities;
|
|
|
|
|
the date or dates on which we will pay the principal on the debt securities;
|
|
|
|
|
the rate or rates (which may be fixed or variable) per annum or the method used to
determine the rate or rates (including any commodity, commodity index, stock exchange
index or financial index) at which the debt securities will bear interest, the date or
dates from which interest will accrue, the date or dates on which interest will
commence and be payable and any regular record date for the interest payable on any
interest payment date;
|
|
|
|
|
the place or places where the principal of, premium, and interest on the debt
securities will be payable;
|
|
|
|
|
the terms and conditions upon which we may redeem the debt securities;
|
7
|
|
|
any obligation we have to redeem or purchase the debt securities pursuant to any
sinking fund or analogous provisions or at the option of a holder of debt securities;
|
|
|
|
|
the dates on which and the price or prices at which we will repurchase the debt
securities at the option of the holders of debt securities and other detailed terms and
provisions of these repurchase obligations;
|
|
|
|
|
the denominations in which the debt securities will be issued, if other than
denominations of $1,000 and any integral multiple thereof;
|
|
|
|
|
whether the debt securities will be issued in the form of certificated debt
securities or global debt securities;
|
|
|
|
|
the portion of principal amount of the debt securities payable upon declaration of
acceleration of the maturity date, if other than the principal amount;
|
|
|
|
|
the currency of denomination of the debt securities;
|
|
|
|
|
the designation of the currency, currencies or currency units in which payment of
principal of, premium and interest on the debt securities will be made;
|
|
|
|
|
if payments of principal of, premium or interest on the debt securities will be made
in one or more currencies or currency units other than that or those in which the debt
securities are denominated, the manner in which the exchange rate with respect to these
payments will be determined;
|
|
|
|
|
the manner in which the amounts of payment of principal of, premium or interest on
the debt securities will be determined, if these amounts may be determined by reference
to an index based on a currency or currencies other than that in which the debt
securities are denominated or designated to be payable or by reference to a commodity,
commodity index, stock exchange index or financial index;
|
|
|
|
|
any provisions relating to any security provided for the debt securities;
|
|
|
|
|
any subordination provisions relating to the debt securities;
|
|
|
|
|
any addition to or change in the events of default described in this prospectus or
in the indenture with respect to the debt securities and any change in the acceleration
provisions described in this prospectus or in the indenture with respect to the debt
securities;
|
|
|
|
|
any addition to or change in the covenants described in this prospectus or in the
indenture with respect to the debt securities;
|
|
|
|
|
any other terms of the debt securities, which may modify or delete any provision of
the indenture as it applies to that series; and
|
|
|
|
|
any depositaries, interest rate calculation agents, exchange rate calculation agents
or other agents with respect to the debt securities.
|
We may issue debt securities that are exchangeable and/or convertible into shares of our
common stock. The terms, if any, on which the debt securities may be exchanged for and/or converted
will be set forth in the applicable prospectus supplement and any related free writing
prospectuses. Such terms may include provisions for conversion, either mandatory, at the option of
the holder or at our option, in which case the number of shares of common stock or other securities
to be received by the holders of debt securities would be calculated as of a time and in the manner
stated in the prospectus supplement and any related free writing prospectuses.
8
We may issue debt securities that provide for an amount less than their stated principal
amount to be due and payable upon declaration of acceleration of their maturity pursuant to the
terms of the indenture. We will provide you with information on the federal income tax
considerations and other special considerations applicable to any of these debt securities in the
applicable prospectus supplement and any related free writing prospectuses.
If we denominate the purchase price of any of the debt securities in a foreign currency or
currencies or a foreign currency unit or units, or if the principal of and any premium and interest
on any series of debt securities is payable in a foreign currency or currencies or a foreign
currency unit or units, we will provide you with information on the restrictions, elections,
general tax considerations, specific terms and other information with respect to that issue of debt
securities and such foreign currency or currencies or foreign currency unit or units in the
applicable prospectus supplement and any related free writing prospectuses.
Transfer and Exchange
Each debt security will be represented by either one or more global securities registered in
the name of The Depository Trust Company, as depositary, or a nominee of the depositary (we will
refer to any debt security represented by a global debt security as a book-entry debt security), or
a certificate issued in definitive registered form (we will refer to any debt security represented
by a certificated security as a certificated debt security), as described in the applicable
prospectus supplement and any related free writing prospectuses. Except as described under Global
Debt Securities and Book-Entry System below, book-entry debt securities will not be issuable in
certificated form.
Certificated Debt Securities
. You may transfer or exchange certificated debt securities at the
trustees office or paying agencies in accordance with the terms of the indenture. No service
charge will be made for any transfer or exchange of certificated debt securities, but we may
require payment of a sum sufficient to cover any tax or other governmental charge payable in
connection with a transfer or exchange.
You may transfer certificated debt securities and the right to receive the principal of,
premium and interest on, certificated debt securities only by surrendering the old certificate
representing those certificated debt securities and either we or the trustee will reissue the old
certificate to the new holder or we or the trustee will issue a new certificate to the new holder.
Global Debt Securities and Book-Entry System
. Each global debt security representing
book-entry debt securities will be deposited with, or on behalf of, the depositary, and registered
in the name of the depositary or a nominee of the depositary.
We will require the depositary to agree to follow the following procedures with respect to
book-entry debt securities.
Ownership of beneficial interests in book-entry debt securities will be limited to persons
that have accounts with the depositary for the related global debt security, whom we refer to as
participants, or persons that may hold interests through participants. Upon the issuance of a
global debt security, the depositary will credit, on its book-entry registration and transfer
system, the participants accounts with the respective principal amounts of the book-entry debt
securities represented by the global debt security beneficially owned by such participants. The
accounts to be credited will be designated by any dealers, underwriters or agents participating in
the distribution of the book-entry debt securities. Ownership of book-entry debt securities will be
shown on, and the transfer of the ownership interests will be effected only through, records
maintained by the depositary for the related global debt security (with respect to interests of
participants) and on the records of participants (with respect to interests of persons holding
through participants). The laws of some states may require that certain purchasers of securities
take physical delivery of such securities in definitive form. These laws may impair the ability to
own, transfer or pledge beneficial interests in book-entry debt securities.
So long as the depositary for a global debt security, or its nominee, is the registered owner
of that global debt security, the depositary or its nominee, as the case may be, will be considered
the sole owner or holder of the book-entry debt securities represented by such global debt security
for all purposes under the indenture. Except as
9
described herein, beneficial owners of book-entry debt securities will not be entitled to have
securities registered in their names, will not receive or be entitled to receive physical delivery
of a certificate in definitive form representing securities and will not be considered the owners
or holders of those securities under the indenture. Accordingly, to exercise any rights of a holder
under the indenture, each person beneficially owning book-entry debt securities must rely on the
procedures of the depositary for the related global debt security and, if that person is not a
participant, on the procedures of the participant through which that person owns its interest.
We will make payments of principal of, and premium and interest on, book-entry debt securities
to the depositary or its nominee, as the case may be, as the registered holder of the related
global debt security. We, the trustee and any other agent of ours or agent of the trustee will not
have any responsibility or liability for any aspect of the records relating to or payments made on
account of beneficial ownership interests in a global debt security or for maintaining, supervising
or reviewing any records relating to such beneficial ownership interests.
We expect that the depositary, upon receipt of any payment of principal of, premium or
interest on, a global debt security, will immediately credit participants accounts with payments
in amounts proportionate to the respective amounts of book-entry debt securities held by each
participant as shown on the records of the depositary. We also expect that payments by participants
to owners of beneficial interests in book-entry debt securities held through those participants
will be governed by standing customer instructions and customary practices, as is now the case with
the securities held for the accounts of customers in bearer form or registered in street name,
and will be the responsibility of those participants.
We will issue certificated debt securities in exchange for each global debt security if the
depositary is at any time unwilling or unable to continue as depositary or ceases to be a clearing
agency registered under the Exchange Act, and a successor depositary registered as a clearing
agency under the Exchange Act is not appointed by us within 90 days. In addition, we may at any
time and in our sole discretion determine not to have any of the book-entry debt securities of any
series represented by one or more global debt securities and, in that event, we will issue
certificated debt securities in exchange for the global debt securities of that series. Global debt
securities will also be exchangeable by the holders for certificated debt securities if an event of
default with respect to the book-entry debt securities represented by those global debt securities
has occurred and is continuing. Any certificated debt securities issued in exchange for a global
debt security will be registered in such name or names as the depositary shall instruct the
trustee. We expect that such instructions will be based upon directions received by the depositary
from participants with respect to ownership of book-entry debt securities relating to such global
debt security.
We have obtained the foregoing information in this section concerning the depositary and the
depositarys book-entry system from sources we believe to be reliable. We take no responsibility
for the depositarys performance of its obligations under the rules and regulations governing its
operations.
No Protection in the Event of a Change in Control
Unless we provide otherwise in the applicable prospectus supplement or any related free
writing prospectuses, the debt securities will not contain any provisions which may afford holders
of the debt securities protection in the event we have a change in control or in the event of a
highly leveraged transaction (whether or not such transaction results in a change in control) that
could adversely affect holders of debt securities.
Covenants
We will describe in the applicable prospectus supplement and any related free writing
prospectuses any restrictive covenants applicable to an issue of debt securities.
Consolidation, Merger and Sale of Assets
We may not consolidate with or merge into, or convey, transfer or lease all or substantially
all of our properties and assets to, any person, such person to be referred to as a successor
person, and we may not permit any person to merge into, or convey, transfer or lease its
properties and assets substantially as an entirety to us, unless:
10
|
|
|
the successor person is a corporation, partnership, trust or other entity organized
and validly existing under the laws of any U.S. domestic jurisdiction and expressly
assumes our obligations on the debt securities and under the indenture;
|
|
|
|
|
immediately after giving effect to the transaction, no event of default, and no
event which, after notice or lapse of time, or both, would become an event of default,
shall have occurred and be continuing under the indenture; and
|
|
|
|
|
certain other conditions are met.
|
Events of Default
Event of default means, with respect to any series of debt securities, any of the following:
|
|
|
default in the payment of any interest upon any debt security of that series when it
becomes due and payable, and continuance of that default for a period of 30 days
(unless the entire amount of such payment is deposited by us with the trustee or with a
paying agent prior to the expiration of the 30-day period);
|
|
|
|
|
default in the payment of principal of or premium on any debt security of that
series when due and payable;
|
|
|
|
|
default in the deposit of any sinking fund payment, when and as due in respect of
any debt security of that series;
|
|
|
|
|
default in the performance or breach of any other covenant or warranty by us in the
indenture (other than a covenant or warranty that has been included in the indenture
solely for the benefit of a series of debt securities other than that series), which
default continues uncured for a period of 60 days after we receive written notice from
the trustee or we and the trustee receive written notice from the holders of at least a
majority in principal amount of the outstanding debt securities of that series as
provided in the indenture;
|
|
|
|
|
certain events of our bankruptcy, insolvency or reorganization; and
|
|
|
|
|
any other event of default provided with respect to debt securities of that series
that is described in the applicable prospectus supplement accompanying this prospectus.
|
No event of default with respect to a particular series of debt securities (except as to
certain events of bankruptcy, insolvency or reorganization) necessarily constitutes an event of
default with respect to any other series of debt securities. An event of default may also be an
event of default under our bank credit agreements or other debt securities in existence from time
to time and under certain guaranties by us of any subsidiary indebtedness. In addition, certain
events of default or an acceleration under the indenture may also be an event of default under some
of our other indebtedness outstanding from time to time.
If an event of default with respect to debt securities of any series at the time outstanding
occurs and is continuing (other than certain events of our bankruptcy, insolvency or
reorganization), then the trustee or the holders of not less than a majority in principal amount of
the outstanding debt securities of that series may, by written notice to us (and to the trustee if
given by the holders), declare to be due and payable immediately the principal (or, if the debt
securities of that series are discount securities, that portion of the principal amount as may be
specified in the terms of that series) of and accrued and unpaid interest, if any, of all debt
securities of that series. In the case of an event of default resulting from certain events of
bankruptcy, insolvency or reorganization, the principal (or such specified amount) of and accrued
and unpaid interest, if any, of all outstanding debt securities will become and be immediately due
and payable without any declaration or other act by the trustee or any holder of outstanding debt
securities. At any time after a declaration of acceleration with respect to debt securities of any
series has been made, but before the trustee has obtained a judgment or decree for payment of the
money due, the holders of a majority in
11
principal amount of the outstanding debt securities of that series may, subject to our having
paid or deposited with the trustee a sum sufficient to pay overdue interest and principal which has
become due other than by acceleration and certain other conditions, rescind and annul such
acceleration if all events of default, other than the non-payment of accelerated principal and
interest, if any, with respect to debt securities of that series, have been cured or waived as
provided in the indenture. For information as to waiver of defaults see the discussion under
Modification and Waiver below. We refer you to the applicable prospectus supplement and any free
writing prospectuses relating to any series of debt securities that are discount securities for the
particular provisions relating to acceleration of a portion of the principal amount of the discount
securities upon the occurrence of an event of default and the continuation of an event of default.
The indenture provides that the trustee will be under no obligation to exercise any of its
rights or powers under the indenture at the request of any holder of outstanding debt securities,
unless the trustee receives indemnity satisfactory to it against any loss, liability or expense.
Subject to certain rights of the trustee, the holders of a majority in principal amount of the
outstanding debt securities of any series shall have the right to direct the time, method and place
of conducting any proceeding for any remedy available to the trustee or exercising any trust or
power conferred on the trustee with respect to the debt securities of that series.
No holder of any debt security of any series will have any right to institute any proceeding,
judicial or otherwise, with respect to the indenture or for the appointment of a receiver or
trustee, or for any remedy under the indenture, unless:
|
|
|
that holder has previously given to the trustee written notice of a continuing event
of default with respect to debt securities of that series; and
|
|
|
|
|
the holders of at least a majority in principal amount of the outstanding debt
securities of that series have made written request, and offered reasonable indemnity,
to the trustee to institute such proceeding as trustee, and the trustee shall not have
received from the holders of a majority in principal amount of the outstanding debt
securities of that series a direction inconsistent with that request and has failed to
institute the proceeding within 60 days.
|
Notwithstanding the foregoing, the holder of any debt security will have an absolute and
unconditional right to receive payment of the principal of, premium and any interest on that debt
security on or after the due dates expressed in that debt security and to institute suit for the
enforcement of payment.
The indenture requires us, within 90 days after the end of our fiscal year, to furnish to the
trustee a certificate as to compliance with the indenture. The indenture provides that the trustee
may withhold notice to the holders of debt securities of any series of any default or event of
default (except in payment on any debt securities of that series) with respect to debt securities
of that series if it in good faith determines that withholding notice is in the interest of the
holders of those debt securities.
Modification and Waiver
We and the trustee may modify and amend the indenture with the consent of the holders of at
least a majority in principal amount of the outstanding debt securities of each series affected by
the modifications or amendments. We and the trustee may not make any modification or amendment
without the consent of the holder of each affected debt security then outstanding if that amendment
will:
|
|
|
change the amount of debt securities whose holders must consent to an amendment or
waiver;
|
|
|
|
|
reduce the rate of or extend the time for payment of interest (including default
interest) on any debt security;
|
|
|
|
|
reduce the principal of or premium on or change the fixed maturity of any debt
security or reduce the amount of, or postpone the date fixed for, the payment of any
sinking fund or analogous obligation with respect to any series of debt securities;
|
12
|
|
|
reduce the principal amount of discount securities payable upon acceleration of
maturity;
|
|
|
|
|
waive a default in the payment of the principal of, premium or interest on any debt
security (except a rescission of acceleration of the debt securities of any series by
the holders of at least a majority in aggregate principal amount of the then
outstanding debt securities of that series and a waiver of the payment default that
resulted from that acceleration);
|
|
|
|
|
make the principal of or premium or interest on any debt security payable in
currency other than that stated in the debt security;
|
|
|
|
|
make any change to certain provisions of the indenture relating to, among other
things, the right of holders of debt securities to receive payment of the principal of,
premium and interest on those debt securities, the right of holders to institute suit
for the enforcement of any payment or the right of holders to waive past defaults or to
amend the limitations described in this bullet point; or
|
|
|
|
|
waive a redemption payment with respect to any debt security or change any of the
provisions with respect to the redemption of any debt securities.
|
Except for certain specified provisions, the holders of at least a majority in principal
amount of the outstanding debt securities of any series may, on behalf of the holders of all debt
securities of that series, waive our compliance with provisions of the indenture. The holders of a
majority in principal amount of the outstanding debt securities of any series may, on behalf of the
holders of all the debt securities of that series, waive any past default under the indenture with
respect to that series and its consequences, except a default in the payment of the principal of,
premium or any interest on any debt security of that series; provided, however, that the holders of
a majority in principal amount of the outstanding debt securities of any series may rescind an
acceleration and its consequences, including any related payment default that resulted from the
acceleration.
Defeasance of Debt Securities and Certain Covenants in Certain Circumstances
Legal Defeasance
. The indenture provides that, unless the terms of the applicable series of
debt securities provide otherwise, we may be discharged from any and all obligations in respect of
the debt securities of any series (except for certain obligations to register the transfer or
exchange of debt securities of the series, to replace stolen, lost or mutilated debt securities of
the series, and to maintain paying agencies and certain provisions relating to the treatment of
funds held by paying agents). We will be so discharged upon the deposit with the trustee, in trust,
of money and/or U.S. government obligations or, in the case of debt securities denominated in a
single currency other than U.S. dollars, foreign government obligations (as described at the end of
this section), that, through the payment of interest and principal in accordance with their terms,
will provide money in an amount sufficient in the opinion of a nationally recognized firm of
independent public accountants to pay and discharge each installment of principal, premium and
interest on and any mandatory sinking fund payments in respect of the debt securities of that
series on the stated maturity of such payments in accordance with the terms of the indenture and
those debt securities.
This discharge may occur only if, among other things, we have delivered to the trustee an
officers certificate and an opinion of counsel stating that we have received from, or there has
been published by, the U.S. Internal Revenue Service a ruling or, since the date of execution of
the indenture, there has been a change in the applicable U.S. federal income tax law, in either
case to the effect that holders of the debt securities of such series will not recognize income,
gain or loss for U.S. federal income tax purposes as a result of the deposit, defeasance and
discharge and will be subject to U.S. federal income tax on the same amount and in the same manner
and at the same times as would have been the case if the deposit, defeasance and discharge had not
occurred.
Defeasance of Certain Covenants
. The indenture provides that, unless the terms of the
applicable series of debt securities provide otherwise, upon compliance with certain conditions, we
may omit to comply with the restrictive covenants contained in the indenture, as well as any
additional covenants contained in a supplement to the indenture, a board resolution or an officers
certificate delivered pursuant to the indenture. The conditions include:
13
|
|
|
depositing with the trustee money and/or U.S. government obligations or, in the case
of debt securities denominated in a single currency other than U.S. dollars, foreign
government obligations, that, through the payment of interest and principal in
accordance with their terms, will provide money in an amount sufficient in the opinion
of a nationally recognized firm of independent public accountants to pay principal,
premium and interest on and any mandatory sinking fund payments in respect of the debt
securities of that series on the stated maturity of those payments in accordance with
the terms of the indenture and those debt securities; and
|
|
|
|
|
delivering to the trustee an opinion of counsel to the effect that the holders of
the debt securities of that series will not recognize income, gain or loss for U.S.
federal income tax purposes as a result of the deposit and related covenant defeasance
and will be subject to U.S. federal income tax in the same amount and in the same
manner and at the same times as would have been the case if the deposit and related
covenant defeasance had not occurred.
|
Covenant Defeasance and Events of Default
. In the event we exercise our option, as described
above, not to comply with certain covenants of the indenture with respect to any series of debt
securities and the debt securities of that series are declared due and payable because of the
occurrence of any event of default, the amount of money and/or U.S. government obligations or
foreign government obligations on deposit with the trustee will be sufficient to pay amounts due on
the debt securities of that series at the time of their stated maturity but may not be sufficient
to pay amounts due on the debt securities of that series at the time of the acceleration resulting
from the event of default. However, we will remain liable for those payments.
Foreign government obligations means, with respect to debt securities of any series that are
denominated in a currency other than U.S. dollars:
|
|
|
direct obligations of the government that issued or caused to be issued such
currency for the payment of which obligations its full faith and credit is pledged,
which are not callable or redeemable at the option of the issuer thereof; or
|
|
|
|
|
obligations of a person controlled or supervised by or acting as an agency or
instrumentality of that government the timely payment of which is unconditionally
guaranteed as a full faith and credit obligation by that government, which are not
callable or redeemable at the option of the issuer thereof.
|
Governing Law
The indenture and the debt securities will be governed by, and construed in accordance with,
the internal laws of the State of New York.
14
DESCRIPTION OF WARRANTS WE MAY OFFER
We may issue warrants to purchase debt securities, preferred stock, common stock or any
combination of the foregoing. We may issue warrants independently or together with any other
securities we offer under a prospectus supplement. The warrants may be attached to or separate from
the securities. We will issue each series of warrants under a separate warrant agreement that we
will enter into with a bank or trust company, as warrant agent. The statements made in this
section relating to the warrant agreement are summaries only. These summaries are not complete.
When we issue warrants, we will provide the specific terms of the warrants and the applicable
warrant agreement in a prospectus supplement and any related free writing prospectuses. To the
extent the information contained in the prospectus supplement differs from this summary
description, you should rely on the information in the prospectus supplement.
Debt Warrants
We will describe in the applicable prospectus supplement and any related free writing
prospectuses the terms of the debt warrants being offered, the warrant agreement relating to the
debt warrants and the debt warrant certificates representing the debt warrants, including:
|
|
|
the title of the debt warrants;
|
|
|
|
|
the aggregate number of the debt warrants;
|
|
|
|
|
the price or prices at which the debt warrants will be issued;
|
|
|
|
|
the designation, aggregate principal amount and terms of the debt securities
purchasable upon exercise of the debt warrants, and the procedures and conditions
relating to the exercise of the debt warrants;
|
|
|
|
|
the designation and terms of any related debt securities with which the debt
warrants are issued, and the number of the debt warrants issued with each security;
|
|
|
|
|
the date, if any, on and after which the debt warrants and the related debt
securities will be separately transferable;
|
|
|
|
|
the principal amount of debt securities purchasable upon exercise of each debt
warrant, and the price at which the principal amount of the debt securities may be
purchased upon exercise;
|
|
|
|
|
the date on which the right to exercise the debt warrants will commence, and the
date on which the right will expire;
|
|
|
|
|
the maximum or minimum number of the debt warrants that may be exercised at any
time;
|
|
|
|
|
information with respect to book-entry procedures, if any;
|
|
|
|
|
a discussion of the material U.S. federal income tax considerations applicable to
the exercise of the debt warrants; and
|
|
|
|
|
any other terms of the debt warrants and terms, procedures and limitations relating
to the exercise of the debt warrants.
|
Holders may exchange debt warrant certificates for new debt warrant certificates of different
denominations, and may exercise debt warrants at the corporate trust office of the warrant agent or
any other office indicated in the applicable prospectus supplement and any related free writing
prospectuses. Prior to the exercise of their debt warrants, holders of debt warrants will not have
any of the rights of holders of the securities purchasable
15
upon the exercise and will not be entitled to payments of principal, premium or interest on
the securities purchasable upon the exercise of debt warrants.
Equity Warrants
We will describe in the applicable prospectus supplement and any related free writing
prospectuses the terms of the preferred stock warrants or common stock warrants being offered, the
warrant agreement relating to the preferred stock warrants or common stock warrants and the warrant
certificates representing the preferred stock warrants or common stock warrants, including:
|
|
|
the title of the warrants;
|
|
|
|
|
the securities for which the warrants are exercisable;
|
|
|
|
|
the price or prices at which the warrants will be issued;
|
|
|
|
|
if applicable, the number of warrants issued with each share of preferred stock or
share of common stock;
|
|
|
|
|
if applicable, the date on and after which the warrants and the related preferred
stock or common stock will be separately transferable;
|
|
|
|
|
the date on which the right to exercise the warrants will commence, and the date on
which the right will expire;
|
|
|
|
|
the maximum or minimum number of warrants which may be exercised at any time;
|
|
|
|
|
information with respect to book-entry procedures, if any;
|
|
|
|
|
a discussion of the material U.S. federal income tax considerations applicable to
exercise of the warrants; and
|
|
|
|
|
any other terms of the warrants, including terms, procedures and limitations
relating to the exchange and exercise of the warrants.
|
Unless otherwise provided in the applicable prospectus supplement or any related free writing
prospectuses, holders of equity warrants will not be entitled, by virtue of being such holders, to
vote, consent, receive dividends, receive notice as stockholders with respect to any meeting of
stockholders for the election of our directors or any other matter, or to exercise any rights
whatsoever as stockholders.
Except as provided in the applicable prospectus supplement or any related free writing
prospectuses, the exercise price payable and the number of shares of common stock or preferred
stock purchasable upon the exercise of each warrant will be subject to adjustment in certain
events, including the issuance of a stock dividend to holders of common stock or preferred stock or
a stock split, reverse stock split, combination, subdivision or reclassification of common stock or
preferred stock. In lieu of adjusting the number of shares of common stock or preferred stock
purchasable upon exercise of each warrant, we may elect to adjust the number of warrants. Unless
otherwise provided in the applicable prospectus supplement or any related free writing
prospectuses, no adjustments in the number of shares purchasable upon exercise of the warrants will
be required until all cumulative adjustments require an adjustment of at least 1% thereof. We may,
at our option, reduce the exercise price at any time. No fractional shares will be issued upon
exercise of warrants, but we will pay the cash value of any fractional shares otherwise issuable.
Notwithstanding the foregoing, except as otherwise provided in the applicable prospectus supplement
or any related free writing prospectuses, in case of any consolidation, merger, or sale or
conveyance of our property as an entirety or substantially as an entirety, the holder of each
outstanding warrant will have the right to the kind and amount of shares of stock and other
securities and property, including cash, receivable by a holder of the number of
16
shares of common stock or preferred stock into which each warrant was exercisable immediately
prior to the particular triggering event.
Exercise of Warrants
Each warrant will entitle the holder of the warrant to purchase for cash at the exercise price
provided in the applicable prospectus supplement or any related free writing prospectuses the
principal amount of debt securities or shares of preferred stock or shares of common stock being
offered. Holders may exercise warrants at any time up to the close of business on the expiration
date provided in the applicable prospectus supplement or any related free writing prospectuses.
After the close of business on the expiration date, unexercised warrants are void.
Holders may exercise warrants as described in the prospectus supplement or any free writing
prospectuses relating to the warrants being offered. Upon receipt of payment and the warrant
certificate properly completed and duly executed at the corporate trust office of the warrant agent
or any other office indicated in the prospectus supplement or any related free writing
prospectuses, we will, as soon as practicable, forward the debt securities, shares of preferred
stock or shares of common stock purchasable upon the exercise of the warrant. If less than all of
the warrants represented by the warrant certificate are exercised, we will issue a new warrant
certificate for the remaining warrants.
17
PLAN OF DISTRIBUTION
We may sell the securities through underwriters or dealers, through agents, or directly to one
or more purchasers or through a combination of these methods. The applicable prospectus supplement
(and any related free writing prospectus that we may authorize to be provided to you) will describe
the terms of the offering of the securities, including:
|
|
|
the name or names of any underwriters, if any, and if required, any dealers or
agents;
|
|
|
|
|
the purchase price or other consideration to be paid in connection with the sale of
the securities being offered and the proceeds we will receive from the sale;
|
|
|
|
|
any underwriting discounts or agency fees and other items constituting underwriters
or agents compensation;
|
|
|
|
|
any discounts or concessions allowed or reallowed or paid to dealers; and
|
|
|
|
|
any securities exchange or market on which the securities may be listed.
|
We may distribute the securities from time to time in one or more transactions at:
|
|
|
fixed price or prices, which may be changed from time to time;
|
|
|
|
|
market prices prevailing at the time of sale;
|
|
|
|
|
prices related to such prevailing market prices; or
|
|
|
|
|
negotiated prices.
|
Only underwriters named in the prospectus supplement are underwriters of the securities
offered by the prospectus supplement.
If we utilize an underwriter in the sale of the securities being offered, we will execute an
underwriting agreement with the underwriter at the time of sale. Any underwriters used in the sale
will acquire the securities for their own account and may resell the securities from time to time
in one or more transactions at a fixed public offering price or at varying prices determined at the
time of sale. The obligations of the underwriters to purchase the securities will be subject to the
conditions set forth in the applicable underwriting agreement. We may offer the securities to the
public through underwriting syndicates represented by managing underwriters or by underwriters
without a syndicate.
In connection with the sale of the securities, we, or the purchasers of the securities for
whom the underwriter may act as agent, may compensate the underwriter in the form of underwriting
discounts or commissions. The underwriter may sell the securities to or through dealers, and the
underwriter may compensate those dealers in the form of discounts, concessions or commissions.
Subject to certain conditions, the underwriters will be obligated to purchase all of the securities
offered by the prospectus supplement. We may change from time to time the public offering price and
any discounts or concessions allowed or reallowed or paid to dealers.
We may directly solicit offers to purchase the securities. We may also designate agents to
solicit offers to purchase the securities from time to time. We will name in a prospectus
supplement any agent involved in the offer or sale of our securities. Unless the prospectus
supplement states otherwise, our agent will act on a best-efforts basis for the period of its
appointment.
If we utilize a dealer in the sale of the securities being offered by this prospectus, we will
sell the securities to the dealer, as principal. The dealer may then resell the securities to the
public at varying prices to be determined by the dealer at the time of resale.
18
We may authorize agents or underwriters to solicit offers by institutional investors to
purchase securities from us at the public offering price set forth in the prospectus supplement
pursuant to delayed delivery contracts providing for payment and delivery on a specified date in
the future. We will describe the conditions to these contracts and the commissions we must pay for
solicitation of these contracts in the prospectus supplement.
Underwriters, dealers and agents participating in the distribution of the securities may be
deemed to be underwriters within the meaning of the Securities Act, and any discounts and
commissions received by them and any profit realized by them on resale of the securities may be
deemed to be underwriting discounts and commissions. We may enter into agreements to indemnify
underwriters, dealers and agents against civil liabilities, including liabilities under the
Securities Act, or to contribute to payments they may be required to make in respect thereof.
In addition, we may enter into derivative transactions with third parties (including the
writing of options), or sell securities not covered by this prospectus to third parties in
privately negotiated transactions. If the applicable prospectus supplement indicates, in connection
with such a transaction, the third parties may, pursuant to this prospectus and the applicable
prospectus supplement, sell securities covered by this prospectus and the applicable prospectus
supplement. If so, the third party may use securities borrowed from us or others to settle such
sales and may use securities received from us to close out any related short positions. We may also
loan or pledge securities covered by this prospectus and the applicable prospectus supplement to
third parties, who may sell the loaned securities or, in an event of default in the case of a
pledge, sell the pledged securities pursuant to this prospectus and the applicable prospectus
supplement. The third party in such sale transactions will be an underwriter and will be identified
in the applicable prospectus supplement or in a post-effective amendment.
All securities we offer, other than common stock, will be new issues of securities with no
established trading market. Any underwriters may make a market in these securities, but will not be
obligated to do so and may discontinue any market making at any time without notice. We cannot
guarantee the liquidity of the trading markets for any securities.
Underwriters may engage in stabilizing and syndicate covering transactions in accordance with
Rule 104 under the Exchange Act. Rule 104 permits stabilizing bids to purchase the securities being
offered as long as the stabilizing bids do not exceed a specified maximum. Underwriters may
over-allot the offered securities in connection with the offering, thus creating a short position
in their account. Syndicate covering transactions involve purchases of the offered securities by
underwriters in the open market after the distribution has been completed in order to cover
syndicate short positions. Underwriters may also cover an over-allotment or short position by
exercising their over-allotment option, if any. Stabilizing and syndicate covering transactions may
cause the price of the offered securities to be higher than it would otherwise be in the absence of
these transactions. These transactions, if commenced, may be discontinued at any time.
Any underwriters who are qualified market makers on The NASDAQ Global Market may engage in
passive market making transactions in the securities on The NASDAQ Global Market in accordance with
Rule 103 of Regulation M, during the business day prior to the pricing of the offering, before the
commencement of offers or sales of the common stock. Passive market makers must comply with
applicable volume and price limitations and must be identified as passive market makers. In
general, a passive market maker must display its bid at a price not in excess of the highest
independent bid for such security; if all independent bids are lowered below the passive market
makers bid, however, the passive market makers bid must then be lowered when certain purchase
limits are exceeded.
In compliance with guidelines of the Financial Industry Regulatory Authority, or FINRA, the
maximum consideration or discount to be received by any FINRA member or independent broker dealer
may not exceed 8% of the aggregate amount of the securities offered pursuant to this prospectus and
any applicable prospectus supplement.
The underwriters, dealers and agents may engage in other transactions with us, or perform
other services for us, in the ordinary course of their business. We will describe such
relationships in the prospectus supplement naming the underwriter and the nature of any such
relationship.
19
LEGAL MATTERS
The validity of the securities being offered hereby will be passed on by Stradling Yocca
Carlson & Rauth, a Professional Corporation, Newport Beach, California.
EXPERTS
The consolidated financial statements and managements assessment of the effectiveness of
internal control over financial reporting (which is included in Managements Report on Internal
Control Over Financial Reporting) incorporated in this prospectus by reference to the Annual Report
on Form 10-K for the year ended December 31, 2008 have been so incorporated in reliance on the
report of PricewaterhouseCoopers LLP, an independent registered public accounting firm, given on
the authority of said firm as experts in auditing and accounting.
WHERE YOU CAN FIND ADDITIONAL INFORMATION
We have filed a registration statement on Form S-3 with the SEC with respect to the securities
covered by this prospectus. This prospectus does not include all of the information contained in
the registration statement. You should refer to the registration statement and its exhibits for
additional information. Whenever we make reference in this prospectus to any of our contracts,
agreements or other documents, the references are not necessarily complete and you should refer to
the exhibits attached to the registration statement for copies of the actual contract, agreement or
other document.
We are subject to the informational requirements of the Exchange Act and in accordance
therewith file periodic reports, current reports, proxy statements and other information with the
SEC. You may read and copy any document we file at the SECs public reference room at 100 F Street,
N.E., Washington, D.C. 20549. Please call the SEC toll free at 1-800-SEC-0330 for information about
its public reference room. The SEC maintains an internet site that contains reports, proxy and
information statements, and other information regarding issuers that file electronically with the
SEC, where our SEC filings are also available. The address of the SECs website is
http://www.sec.gov. We maintain a website at www.endologix.com. Information contained in or
accessible through our website does not constitute part of this prospectus.
INCORPORATION OF CERTAIN INFORMATION BY REFERENCE
The SEC allows us to incorporate by reference the information we file with it, which means
that we can disclose important information to you by referring you to those documents. The
information incorporated by reference is an important part of this prospectus. Information in this
prospectus supersedes information incorporated by reference that we filed with the SEC prior to the
date of this prospectus, while information that we file later with the SEC will automatically
update and supersede the information in this prospectus. We incorporate by reference into this
registration statement and prospectus the documents listed below, and any future filings we make
with the SEC under Sections 13(a), 13(c), 14 or 15(d) of the Exchange Act after the date of the
initial registration statement but prior to effectiveness of the registration statement and after
the date of this prospectus but prior to the termination of the offering of the securities covered
by this prospectus, except for information furnished under Item 2.02 or Item 7.01 of Form 8-K which
is neither deemed filed nor incorporated by reference herein:
|
|
|
our Annual Report on Form 10-K for the fiscal year ended December 31, 2008 as filed
with the SEC on March 10, 2009, as amended by Amendment No. 1 to Annual Report on Form
10-K as filed with the SEC on April 30, 2009;
|
|
|
|
|
our Quarterly Report on Form 10-Q, as filed with the SEC on
May 8, 2009;
|
|
|
|
|
our Current Reports on Form 8-K as filed with the SEC on January 2, 2009, February
5, 2009, and March 5, 2009; and
|
20
|
|
|
the description of our common stock contained in our Registration Statement on
Form 8-A, filed with the SEC on June 18, 1996, including any amendment or report filed
for the purpose of updating such description.
|
You may request a copy of these filings (other than an exhibit to a filing unless that exhibit
is specifically incorporated by reference into that filing) at no cost, by writing to us at the
following address: Investor Relations, Endologix, Inc., 11 Studebaker, Irvine, California 92618,
or by telephoning us at the following telephone number: (949) 595-7200.
21
PART II
INFORMATION NOT REQUIRED IN PROSPECTUS
Item 14. Other Expenses of Issuance and Distribution.
The following table sets forth the estimated costs and expenses, other than underwriting
discounts and commissions, payable by us in connection with the offering of the securities being
registered. All the amounts shown are estimates, except for the SEC registration fee.
|
|
|
|
|
SEC registration fees
|
|
$
|
2,790
|
|
Printing fees and expenses
|
|
|
*
|
|
Legal fees and expenses
|
|
|
*
|
|
Accounting fees and expenses
|
|
|
*
|
|
Miscellaneous expenses
|
|
|
*
|
|
Total
|
|
|
*
|
|
|
|
|
*
|
|
To be filed by amendment with a Current Report on Form 8-K or Rule 424 filing.
|
Item 15. Indemnification of Directors and Officers.
Section 145 of the Delaware General Corporation Law provides that a corporation may indemnify
any person made a party to an action (other than an action by or in the right of the corporation)
by reason of the fact that he or she was a director, officer, employee or agent of the corporation
or was serving at the request of the corporation against expenses (including attorneys fees),
judgments, fines, and amounts paid in settlement actually and reasonably incurred by him or her in
connection with such action if he or she acted in good faith and in a manner he or she reasonably
believed to be in, or not opposed to, the best interests of the corporation and, with respect to
any criminal action (other than an action by or in the right of the corporation), has no reasonable
cause to believe his or her conduct was unlawful.
Our amended and restated certificate of incorporation, as amended, limits, to the maximum
extent permitted by Delaware law, the personal liability of directors for monetary damages for
breach of their fiduciary duties as a director. Our amended and restated bylaws provide that we
shall indemnify our officers and directors and may indemnify our employees and other agents to the
fullest extent permitted by Delaware law.
Our directors and officers are covered by insurance policies indemnifying against certain
liabilities, including certain liabilities arising under the Securities Act of 1933, which might be
incurred by them in such capacities and against which they cannot be indemnified by us. We have
entered into indemnification agreements with all of our executive officers and directors which
provide indemnification under certain circumstances for acts and omissions in the course of their
employment with us.
Item 16. Exhibits.
|
|
|
Exhibit
|
|
|
Number
|
|
Description
|
1.1
|
|
Form of Underwriting Agreement (1)
|
|
|
|
3.1
|
|
Amended and Restated Certificate of Incorporation (Incorporated by reference to
Exhibit 4.1 to Endologix Registration Statement on Form S-8, filed with the SEC on
August 7, 2006).
|
|
|
|
3.2
|
|
Amended and Restated Bylaws (Incorporated by reference to Exhibit 3.2 to Endologix
Annual Report on Form 10-K filed with the SEC on March 29, 2001).
|
|
|
|
4.1
|
|
Specimen Certificate of Common Stock (Incorporated by reference to Exhibit 4.1 to
Amendment No. 2 to Endologix Registration Statement on Form S-1, No. 333-04560,
filed with the SEC on June 10, 1996).
|
|
|
|
4.2
|
|
Form of Indenture
|
|
|
|
4.3
|
|
Form of Debt Security (1)
|
|
|
|
4.4
|
|
Form of Warrant Agreement, including form of warrant (1)
|
|
|
|
5.1
|
|
Opinion of Stradling Yocca Carlson & Rauth, a Professional Corporation
|
II-1
|
|
|
Exhibit
|
|
|
Number
|
|
Description
|
12.1
|
|
Statement Regarding the Computation of Ratio of Earnings to Fixed Charges
|
|
|
|
23.1
|
|
Consent of PricewaterhouseCoopers LLP, independent registered public accounting firm
|
|
|
|
23.2
|
|
Consent of Stradling Yocca Carlson & Rauth, a Professional Corporation (included in
its opinion filed as Exhibit 5.1 hereto)
|
|
|
|
24.1
|
|
Power of Attorney (included on signature page hereto)
|
|
|
|
25.1
|
|
Statement of Eligibility of Trustee on Form T-1 (1)
|
|
|
|
(1)
|
|
To be filed as an exhibit to a Current Report on Form 8-K and incorporated herein by
reference.
|
Item 17. Undertakings.
(a) The undersigned registrant hereby undertakes:
(1) To file, during any period in which offers or sales are being made, a post-effective
amendment to this registration statement:
(i) To include any prospectus required by Section 10(a)(3) of the Securities Act of 1933;
(ii) To reflect in the prospectus any facts or events arising after the effective date of the
registration statement (or the most recent post-effective amendment thereof) which, individually or
in the aggregate, represent a fundamental change in the information set forth in the registration
statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered
(if the total dollar value of securities offered would not exceed that which was registered) and
any deviation from the low or high end of the estimated maximum offering range may be reflected in
the form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the
changes in volume and price represent no more than a 20 percent change in the maximum aggregate
offering price set forth in the Calculation of Registration Fee table in the effective
registration statement;
(iii) To include any material information with respect to the plan of distribution not
previously disclosed in the registration statement or any material change to such information in
the registration statement;
Provided, however
, that paragraphs (a)(1)(i), (a)(1)(ii) and (a)(1)(iii) of this section do
not apply if the information required to be included in a post-effective amendment by those
paragraphs is contained in reports filed with or furnished to the Commission by the
registrant pursuant to section 13 or section 15(d) of the Securities Exchange Act of 1934
that are incorporated by reference in the registration statement, or is contained in a form
of prospectus filed pursuant to Rule 424(b) that is part of the registration statement.
(2) That, for the purpose of determining any liability under the Securities Act of 1933, each
such post-effective amendment shall be deemed to be a new registration statement relating to the
securities offered therein, and the offering of such securities at that time shall be deemed to be
the initial
bona fide
offering thereof.
(3) To remove from registration by means of a post-effective amendment any of the securities
being registered which remain unsold at the termination of the offering.
(4) That, for the purpose of determining liability under the Securities Act of 1933 to any
purchaser:
(i) Each prospectus filed by the registrant pursuant to Rule 424(b)(3) shall be deemed to be
part of the registration statement as of the date the filed prospectus was deemed part of and
included in the registration statement; and
(ii) Each prospectus required to be filed pursuant to Rule 424(b)(2), (b)(5), or (b)(7) as
part of a registration statement in reliance on Rule 430B relating to an offering made pursuant to
II-2
Rule 415(a)(1)(i), (vii), or (x) for the purpose of providing the information required by
section 10(a) of the Securities Act of 1933 shall be deemed to be part of and included in the
registration statement as of the earlier of the date such form of prospectus is first used after
effectiveness or the date of the first contract of sale of securities in the offering described in
the prospectus. As provided in Rule 430B, for liability purposes of the issuer and any person that
is at that date an underwriter, such date shall be deemed to be a new effective date of the
registration statement relating to the securities in the registration statement to which that
prospectus relates, and the offering of such securities at that time shall be deemed to be the
initial
bona fide
offering thereof.
Provided, however
, that no statement made in a registration
statement or prospectus that is part of the registration statement or made in a document
incorporated or deemed incorporated by reference into the registration statement or prospectus that
is part of the registration statement will, as to a purchaser with a time of contract of sale prior
to such effective date, supersede or modify any statement that was made in the registration
statement or prospectus that was part of the registration statement or made in any such document
immediately prior to such effective date.
(5) That, for the purpose of determining liability of the registrant under the Securities Act
of 1933 to any purchaser in the initial distribution of the securities, the undersigned registrant
undertakes that in a primary offering of securities of the undersigned registrant pursuant to this
registration statement, regardless of the underwriting method used to sell the securities to the
purchaser, if the securities are offered or sold to such purchaser by means of any of the following
communications, the undersigned registrant will be a seller to the purchaser and will be considered
to offer or sell such securities to such purchaser:
(i) Any preliminary prospectus or prospectus of the undersigned registrant relating to the
offering required to be filed pursuant to Rule 424;
(ii) Any free writing prospectus relating to the offering prepared by or on behalf of the
undersigned registrant or used or referred to by the undersigned registrant;
(iii) The portion of any other free writing prospectus relating to the offering containing
material information about the undersigned registrant or its securities provided by or on behalf of
the undersigned registrant; and
(iv) Any other communication that is an offer in the offering made by the undersigned
registrant to the purchaser.
(b) The undersigned registrant hereby undertakes that, for purposes of determining any
liability under the Securities Act of 1933, each filing of the registrants annual report pursuant
to Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934 (and, where applicable,
each filing of an employee benefit plans annual report pursuant to Section 15(d) of the Securities
Exchange Act of 1934), that is incorporated by reference in the registration statement shall be
deemed to be a new registration statement relating to the securities offered therein, and the
offering of such securities at that time shall be deemed to be the initial
bona fide
offering
thereof.
(c) The undersigned registrant hereby undertakes (1) to use its best efforts to distribute
prior to the opening of bids, to prospective bidders, underwriters, and dealers, a reasonable
number of copies of a prospectus which at that time meets the requirements of section 10(a) of the
Securities Act, and relating to the securities offered at competitive bidding, as contained in the
registration statement, together with any supplements thereto, and (2) to file an amendment to the
registration statement reflecting the results of bidding, the terms of the reoffering and related
matters to the extent required by the applicable form, not later than the first use, authorized by
the issuer after the opening of bids, of a prospectus relating to the securities offered at
competitive bidding, unless no further public offering of such securities by the issuer and no
reoffering of such securities by the purchasers is proposed to be made.
(d) The undersigned registrant hereby undertakes to file an application for the purpose of
determining the eligibility of the trustee to act under subsection (a) of section 310 of the Trust
Indenture Act in accordance with the rules and regulations prescribed by the Commission under
section 305(b)2 of the Trust Indenture Act.
II-3
(e) Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be
permitted to directors, officers and controlling persons of the registrant pursuant to the
foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the
Commission such indemnification is against public policy as expressed in the Act and is, therefore,
unenforceable. In the event that a claim for indemnification against such liabilities (other than
the payment by the registrant of expenses incurred or paid by a director, officer or controlling
person of the registrant in the successful defense of any action, suit or proceeding) is asserted
by such director, officer or controlling person in connection with the securities being registered,
the registrant will, unless in the opinion of its counsel the matter has been settled by
controlling precedent, submit to a court of appropriate jurisdiction the question whether such
indemnification by it is against public policy as expressed in the Act and will be governed by the
final adjudication of such issue.
II-4
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the registrant certifies that it
has reasonable grounds to believe that it meets all of the requirements for filing on Form S-3 and
has duly caused this registration statement to be signed on its behalf by the undersigned,
thereunto duly authorized, in the City of Irvine, State of California, on May 8, 2009.
|
|
|
|
|
|
ENDOLOGIX, INC.
|
|
|
By:
|
/s/ John McDermott
|
|
|
|
John McDermott
|
|
|
|
Chief Executive Officer
(Principal Executive Officer)
|
|
|
POWER OF ATTORNEY
We, the undersigned directors and officers of Endologix, Inc., do hereby constitute and
appoint John McDermott and Robert J. Krist, or either of them, our true and lawful attorneys and
agents, to do any and all acts and things in our name and behalf in our capacities as directors and
officers and to execute any and all instruments for us and in our names in the capacities indicated
below, which said attorneys and agents, or either of them, may deem necessary or advisable to
enable said corporation to comply with the Securities Act of 1933, as amended, and any rules,
regulations, and requirements of the Securities and Exchange Commission, in connection with this
registration statement, including specifically, but without limitation, power and authority to sign
for us or any of us in our names and in the capacities indicated below, any and all amendments
(including post-effective amendments) to this registration statement, or any related registration
statement that is to be effective upon filing pursuant to Rule 462(b) under the Securities Act of
1933, as amended; and we do hereby ratify and confirm all that the said attorneys and agents, or
either of them, shall do or cause to be done by virtue hereof.
Pursuant to the requirements of the Securities Act of 1933, this registration statement has
been signed by the following persons in the capacities and on the dates indicated.
|
|
|
|
|
Signature
|
|
Title
|
|
Date
|
|
|
|
|
|
/s/ John McDermott
John McDermott
|
|
Chief Executive Officer and Director
(Principal Executive Officer)
|
|
May 8, 2009
|
|
|
|
|
|
/s/ Robert J. Krist
Robert J. Krist
|
|
Chief Financial Officer and Secretary
(Principal Financial and Accounting Officer)
|
|
May 8, 2009
|
|
|
|
|
|
/s/ Franklin D. Brown
Franklin D. Brown
|
|
Chairman of the Board
|
|
May 8, 2009
|
|
|
|
|
|
/s/ Roderick de Greef
Roderick de Greef
|
|
Director
|
|
May 8, 2009
|
|
|
|
|
|
/s/ Edward B. Deithrich, M.D.
Edward B. Deithrich, M.D.
|
|
Director
|
|
May 8, 2009
|
|
|
|
|
|
/s/ Paul McCormick
Paul McCormick
|
|
Director
|
|
May 8, 2009
|
|
|
|
|
|
/s/ Jeffrey F. ODonnell
Jeffrey F. ODonnell
|
|
Director
|
|
May 8, 2009
|
|
|
|
|
|
/s/ Gregory D. Waller
Gregory D. Waller
|
|
Director
|
|
May 8, 2009
|
EXHIBIT INDEX
|
|
|
Exhibit
|
|
|
Number
|
|
Description
|
1.1
|
|
Form of Underwriting Agreement (1)
|
|
|
|
3.1
|
|
Amended and Restated Certificate of Incorporation (Incorporated by reference to
Exhibit 4.1 to Endologix Registration Statement on Form S-8, filed with the SEC on
August 7, 2006).
|
|
|
|
3.2
|
|
Amended and Restated Bylaws (Incorporated by reference to Exhibit 3.2 to Endologix
Annual Report on Form 10-K filed with the SEC on March 29, 2001).
|
|
|
|
4.1
|
|
Specimen Certificate of Common Stock (Incorporated by reference to Exhibit 4.1 to
Amendment No. 2 to Endologix Registration Statement on Form S-1, No. 333-04560,
filed with the SEC on June 10, 1996).
|
|
|
|
4.2
|
|
Form of Indenture
|
|
|
|
4.3
|
|
Form of Debt Security (1)
|
|
|
|
4.4
|
|
Form of Warrant Agreement, including form of warrant (1)
|
|
|
|
5.1
|
|
Opinion of Stradling Yocca Carlson & Rauth, a Professional Corporation
|
|
|
|
12.1
|
|
Statement Regarding the Computation of Ratio of Earnings to Fixed Charges
|
|
|
|
23.1
|
|
Consent of PricewaterhouseCoopers LLP, independent registered public accounting firm
|
|
|
|
23.2
|
|
Consent of Stradling Yocca Carlson & Rauth, a Professional Corporation (included in
its opinion filed as Exhibit 5.1 hereto)
|
|
|
|
24.1
|
|
Power of Attorney (included on signature page hereto)
|
|
|
|
25.1
|
|
Statement of Eligibility of Trustee on Form T-1 (1)
|
|
|
|
(1)
|
|
To be filed as an exhibit to a Current Report on Form 8-K and incorporated herein by
reference.
|
6
Exhibit 4.2
FORM OF
ENDOLOGIX, INC.
INDENTURE
Dated as of
[Name of Trustee]
Trustee
TABLE OF CONTENTS
|
|
|
|
|
|
|
|
|
|
|
Page
|
|
ARTICLE I
|
DEFINITIONS AND INCORPORATION BY REFERENCE
|
|
|
|
|
|
|
|
Section 1.1.
|
|
Definitions
|
|
|
1
|
|
Section 1.2.
|
|
Other Definitions
|
|
|
5
|
|
Section 1.3.
|
|
Incorporation by Reference of Trust Indenture Act
|
|
|
5
|
|
Section 1.4.
|
|
Rules of Construction
|
|
|
5
|
|
|
|
|
|
|
|
|
ARTICLE II
|
THE SECURITIES
|
|
|
|
|
|
|
|
Section 2.1.
|
|
Issuable in Series
|
|
|
6
|
|
Section 2.2.
|
|
Establishment of Terms of Series of Securities
|
|
|
6
|
|
Section 2.3.
|
|
Execution and Authentication
|
|
|
8
|
|
Section 2.4.
|
|
Registrar and Paying Agent
|
|
|
9
|
|
Section 2.5.
|
|
Paying Agent to Hold Money in Trust
|
|
|
10
|
|
Section 2.6.
|
|
Securityholder Lists
|
|
|
10
|
|
Section 2.7.
|
|
Transfer and Exchange
|
|
|
10
|
|
Section 2.8.
|
|
Mutilated, Destroyed, Lost and Stolen Securities
|
|
|
10
|
|
Section 2.9.
|
|
Outstanding Securities
|
|
|
11
|
|
Section 2.10.
|
|
Treasury Securities
|
|
|
11
|
|
Section 2.11.
|
|
Temporary Securities
|
|
|
12
|
|
Section 2.12.
|
|
Cancellation
|
|
|
12
|
|
Section 2.13.
|
|
Defaulted Interest
|
|
|
12
|
|
Section 2.14.
|
|
Global Securities
|
|
|
12
|
|
|
|
|
|
|
|
|
ARTICLE III
|
REDEMPTION
|
|
|
|
|
|
|
|
Section 3.1.
|
|
Notice to Trustee
|
|
|
13
|
|
Section 3.2.
|
|
Selection of Securities to be Redeemed
|
|
|
14
|
|
Section 3.3.
|
|
Notice of Redemption
|
|
|
14
|
|
Section 3.4.
|
|
Effect of Notice of Redemption
|
|
|
14
|
|
Section 3.5.
|
|
Deposit of Redemption Price
|
|
|
15
|
|
Section 3.6.
|
|
Securities Redeemed in Part
|
|
|
15
|
|
|
|
|
|
|
|
|
ARTICLE IV
|
COVENANTS
|
|
|
|
|
|
|
|
Section 4.1.
|
|
Payment of Principal and Interest
|
|
|
15
|
|
Section 4.2.
|
|
SEC Reports
|
|
|
15
|
|
Section 4.3.
|
|
Compliance Certificate
|
|
|
15
|
|
Section 4.4.
|
|
Stay, Extension and Usury Laws
|
|
|
15
|
|
Section 4.5.
|
|
Corporate Existence
|
|
|
16
|
|
Section 4.6.
|
|
Taxes
|
|
|
16
|
|
i
|
|
|
|
|
|
|
|
|
|
|
Page
|
|
ARTICLE V
|
SUCCESSORS
|
|
|
|
|
|
|
|
Section 5.1.
|
|
When Company May Merge, Etc
|
|
|
16
|
|
Section 5.2.
|
|
Successor Corporation Substituted
|
|
|
16
|
|
|
|
|
|
|
|
|
ARTICLE VI
|
DEFAULTS AND REMEDIES
|
|
|
|
|
|
|
|
Section 6.1.
|
|
Events of Default
|
|
|
17
|
|
Section 6.2.
|
|
Acceleration of Maturity; Rescission and Annulment
|
|
|
18
|
|
Section 6.3.
|
|
Collection of Indebtedness and Suits for Enforcement by Trustee
|
|
|
19
|
|
Section 6.4.
|
|
Trustee May File Proofs of Claim
|
|
|
19
|
|
Section 6.5.
|
|
Trustee May Enforce Claims Without Possession of Securities
|
|
|
20
|
|
Section 6.6.
|
|
Application of Money Collected
|
|
|
20
|
|
Section 6.7.
|
|
Limitation on Suits
|
|
|
20
|
|
Section 6.8.
|
|
Unconditional Right of Holders to Receive Principal and Interest
|
|
|
21
|
|
Section 6.9.
|
|
Restoration of Rights and Remedies
|
|
|
21
|
|
Section 6.10.
|
|
Rights and Remedies Cumulative
|
|
|
21
|
|
Section 6.11.
|
|
Delay or Omission Not Waiver
|
|
|
21
|
|
Section 6.12.
|
|
Control by Holders
|
|
|
22
|
|
Section 6.13.
|
|
Waiver of Past Defaults
|
|
|
22
|
|
Section 6.14.
|
|
Undertaking For Costs
|
|
|
22
|
|
|
|
|
|
|
|
|
ARTICLE VII
|
TRUSTEE
|
|
|
|
|
|
|
|
Section 7.1.
|
|
Duties of Trustee
|
|
|
23
|
|
Section 7.2.
|
|
Rights of Trustee
|
|
|
24
|
|
Section 7.3.
|
|
Individual Rights of Trustee
|
|
|
24
|
|
Section 7.4.
|
|
Trustee's Disclaimer
|
|
|
24
|
|
Section 7.5.
|
|
Notice of Defaults
|
|
|
24
|
|
Section 7.6.
|
|
Reports by Trustee to Holders
|
|
|
25
|
|
Section 7.7.
|
|
Compensation and Indemnity
|
|
|
25
|
|
Section 7.8.
|
|
Replacement of Trustee
|
|
|
25
|
|
Section 7.9.
|
|
Successor Trustee by Merger, Etc
|
|
|
26
|
|
Section 7.10.
|
|
Eligibility; Disqualification
|
|
|
26
|
|
Section 7.11.
|
|
Preferential Collection of Claims Against Company
|
|
|
27
|
|
|
|
|
|
|
|
|
ARTICLE VIII
|
SATISFACTION AND DISCHARGE; DEFEASANCE
|
|
|
|
|
|
|
|
Section 8.1.
|
|
Satisfaction and Discharge of Indenture
|
|
|
27
|
|
Section 8.2.
|
|
Application of Trust Funds; Indemnification
|
|
|
28
|
|
Section 8.3.
|
|
Legal Defeasance of Securities of Any Series
|
|
|
28
|
|
Section 8.4.
|
|
Covenant Defeasance
|
|
|
30
|
|
Section 8.5.
|
|
Repayment to Company
|
|
|
31
|
|
|
|
|
|
|
|
|
ii
|
|
|
|
|
|
|
|
|
|
|
Page
|
|
ARTICLE IX
|
AMENDMENTS AND WAIVERS
|
|
|
|
|
|
|
|
Section 9.1.
|
|
Without Consent of Holders
|
|
|
31
|
|
Section 9.2.
|
|
With Consent of Holders
|
|
|
31
|
|
Section 9.3.
|
|
Limitations
|
|
|
32
|
|
Section 9.4.
|
|
Compliance with Trust Indenture Act
|
|
|
32
|
|
Section 9.5.
|
|
Revocation and Effect of Consents
|
|
|
32
|
|
Section 9.6.
|
|
Notation on or Exchange of Securities
|
|
|
33
|
|
Section 9.7.
|
|
Trustee Protected
|
|
|
33
|
|
|
|
|
|
|
|
|
ARTICLE X
|
MISCELLANEOUS
|
|
|
|
|
|
|
|
Section 10.1.
|
|
Trust Indenture Act Controls
|
|
|
33
|
|
Section 10.2.
|
|
Notices
|
|
|
33
|
|
Section 10.3.
|
|
Communication by Holders with other Holders
|
|
|
34
|
|
Section 10.4.
|
|
Certificate and Opinion as to Conditions Precedent
|
|
|
34
|
|
Section 10.5.
|
|
Statements Required in Certificate or Opinion
|
|
|
34
|
|
Section 10.6.
|
|
Rules by Trustee and Agents
|
|
|
35
|
|
Section 10.7.
|
|
Legal Holidays
|
|
|
35
|
|
Section 10.8.
|
|
No Recourse Against Others
|
|
|
35
|
|
Section 10.9.
|
|
Counterparts
|
|
|
35
|
|
Section 10.10.
|
|
Governing Laws
|
|
|
35
|
|
Section 10.11.
|
|
No Adverse Interpretation of Other Agreements
|
|
|
35
|
|
Section 10.12.
|
|
Successors
|
|
|
35
|
|
Section 10.13.
|
|
Severability
|
|
|
35
|
|
Section 10.14.
|
|
Table of Contents, Headings, Etc
|
|
|
35
|
|
Section 10.15.
|
|
Securities in a Foreign Currency or in ECU
|
|
|
35
|
|
Section 10.16.
|
|
Judgment Currency
|
|
|
36
|
|
|
|
|
|
|
|
|
ARTICLE XI
|
SINKING FUNDS
|
|
|
|
|
|
|
|
Section 11.1.
|
|
Applicability of Article
|
|
|
37
|
|
Section 11.2.
|
|
Satisfaction of Sinking Fund Payments with Securities
|
|
|
37
|
|
Section 11.3.
|
|
Redemption of Securities for Sinking Fund
|
|
|
37
|
|
iii
ENDOLOGIX, INC.
Reconciliation and tie between Trust Indenture Act of 1939 and
Indenture, dated as of
|
|
|
|
|
Section. 310(a)(1)
|
|
|
|
7.10
|
(a)(2)
|
|
|
|
7.10
|
(a)(3)
|
|
|
|
Not Applicable
|
(a)(4)
|
|
|
|
Not Applicable
|
(a)(5)
|
|
|
|
7.10
|
(b)
|
|
|
|
7.10
|
Section. 311(a)
|
|
|
|
7.11
|
(b)
|
|
|
|
7.11
|
(c)
|
|
|
|
Not Applicable
|
Section. 312(a)
|
|
|
|
2.6
|
(b)
|
|
|
|
10.3
|
(c)
|
|
|
|
10.3
|
Section. 313(a)
|
|
|
|
7.6
|
(b)(1)
|
|
|
|
7.6
|
(b)(2)
|
|
|
|
7.6
|
(c)(1)
|
|
|
|
7.6
|
(d)
|
|
|
|
7.6
|
Section. 314(a)
|
|
|
|
4.2, 10.5
|
(b)
|
|
|
|
Not Applicable
|
(c)(1)
|
|
|
|
10.4
|
(c)(2)
|
|
|
|
10.4
|
(c)(3)
|
|
|
|
Not Applicable
|
(d)
|
|
|
|
Not Applicable
|
(e)
|
|
|
|
10.5
|
(f)
|
|
|
|
Not Applicable
|
Section. 315(a)
|
|
|
|
7.1
|
(b)
|
|
|
|
7.5
|
(c)
|
|
|
|
7.1
|
(d)
|
|
|
|
7.1
|
(e)
|
|
|
|
6.14
|
Section. 316(a)
|
|
|
|
2.10
|
(a)(1)(A)
|
|
|
|
6.12
|
(a)(1)(B)
|
|
|
|
6.13
|
(b)
|
|
|
|
6.8
|
Section. 317(a)(1)
|
|
|
|
6.3
|
(a)(2)
|
|
|
|
6.4
|
(b)
|
|
|
|
2.5
|
Section. 318(a)
|
|
|
|
10.1
|
Note: This reconciliation and tie shall not, for any purpose, be deemed to be part of the
Indenture.
iv
Indenture dated as of
, 20
between Endologix, Inc., a Delaware corporation
(Company), and [Name of Trustee], a
(Trustee).
Each party agrees as follows for the benefit of the other party and for the equal and ratable
benefit of the Holders of the Securities issued under this Indenture.
ARTICLE I
DEFINITIONS AND INCORPORATION BY REFERENCE
Section 1.1. Definitions
.
Additional Amounts means any additional amounts which are required hereby or by any
Security, under circumstances specified herein or therein, to be paid by the Company in respect of
certain taxes imposed on Holders specified therein and which are owing to such Holders.
Affiliate of any specified person means any other person directly or indirectly controlling
or controlled by or under direct or indirect common control with such specified person. For the
purposes of this definition, control (including, with correlative meanings, the terms controlled
by and under common control with), as used with respect to any person, shall mean the
possession, directly or indirectly, of the power to direct or cause the direction of the management
or policies of such person, whether through the ownership of voting securities or by agreement or
otherwise.
Agent means any Registrar, Paying Agent or Service Agent.
Authorized Newspaper means a newspaper in an official language of the country of publication
customarily published at least once a day for at least five days in each calendar week and of
general circulation in the place in connection with which the term is used. If it shall be
impractical in the opinion of the Trustee to make any publication of any notice required hereby in
an Authorized Newspaper, any publication or other notice in lieu thereof that is made or given by
the Trustee shall constitute a sufficient publication of such notice.
Bearer means anyone in possession from time to time of a Bearer Security.
Bearer Security means any Security, including any interest coupon appertaining thereto, that
does not provide for the identification of the Holder thereof.
Board of Directors means the Board of Directors of the Company or any duly authorized
committee thereof.
Board Resolution means a copy of a resolution certified by the Secretary or an Assistant
Secretary of the Company to have been adopted by the Board of Directors or pursuant to
authorization by the Board of Directors and to be in full force and effect on the date of the
certificate and delivered to the Trustee.
Business Day means, unless otherwise provided by Board Resolution, Officers Certificate or
supplemental indenture hereto for a particular Series, any day except a Saturday, Sunday or a legal
holiday in The City of New York or The City of Irvine on which banking institutions are authorized
or required by law, regulation or executive order to close.
Company means the party named as such above until a successor replaces it and thereafter
means the successor.
Company Order means a written order signed in the name of the Company by two Officers, one
of whom must be the Companys principal executive officer, principal financial officer or principal
accounting officer.
Company Request means a written request signed in the name of the Company by any Officer and
delivered to the Trustee.
Corporate Trust Office means the office of the Trustee at which at any particular time its
corporate trust business shall be principally administered.
Default means any event which is, or after notice or passage of time or both would be, an
Event of Default.
Depository means, with respect to the Securities of any Series issuable or issued in whole
or in part in the form of one or more Global Securities, the person designated as Depository for
such Series by the Company, which Depository shall be a clearing agency registered under the
Exchange Act; and if at any time there is more than one such person, Depository as used with
respect to the Securities of any Series shall mean the Depository with respect to the Securities of
such Series.
Discount Security means any Security that provides for an amount less than the stated
principal amount thereof to be due and payable upon declaration of acceleration of the maturity
thereof pursuant to Section 6.2.
Dollars means the currency of the United States of America.
ECU means the European Currency Unit as determined by the Commission of the European Union.
Exchange Act means the Securities Exchange Act of 1934, as amended.
Foreign Currency means any currency or currency unit issued by a government other than the
government of the United States of America.
Foreign Government Obligations means with respect to Securities of any Series that are
denominated in a Foreign Currency, (i) direct obligations of the government that issued or caused
to be issued such currency for the payment of which obligations its full faith and credit is
pledged or (ii) obligations of a person controlled or supervised by or acting as an agency or
instrumentality of such government the timely payment of which is unconditionally guaranteed as a
full faith and credit obligation by such government, which, in either case under clauses (i) or
(ii), are not callable or redeemable at the option of the issuer thereof.
Global Security or Global Securities means a Security or Securities, as the case may be,
in the form established pursuant to Section 2.2 evidencing all or part of a Series of Securities,
issued to the Depository for such Series or its nominee, and registered in the name of such
Depository or nominee.
2
Holder or Securityholder means a person in whose name a Security is registered or the
holder of a Bearer Security.
Indenture means this Indenture as amended or supplemented from time to time and shall
include the form and terms of particular Series of Securities established as contemplated
hereunder.
interest with respect to any Discount Security which by its terms bears interest only after
Maturity, means interest payable after Maturity.
Maturity, when used with respect to any Security or installment of principal thereof, means
the date on which the principal of such Security or such installment of principal becomes due and
payable as therein or herein provided, whether at the Stated Maturity or by declaration of
acceleration, call for redemption, notice of option to elect repayment or otherwise.
Officer means the Chairman of the Board, any President, any Vice-President, the Chief
Financial Officer, the Treasurer, the Secretary, any Assistant Treasurer or any Assistant Secretary
of the Company.
Officers Certificate means a certificate signed by two Officers, one of whom must be the
Companys principal executive officer, principal financial officer or principal accounting officer.
Opinion of Counsel means a written opinion of legal counsel who is acceptable to the
Trustee. The counsel may be an employee of or counsel to the Company.
person means any individual, corporation, partnership, joint venture, association, limited
liability company, joint-stock company, trust, unincorporated organization or government or any
agency or political subdivision thereof.
principal of a Security means the principal of the Security plus, when appropriate, the
premium, if any, on, and any Additional Amounts in respect of, the Security.
Responsible Officer means any officer of the Trustee in its Corporate Trust Office and also
means, with respect to a particular corporate trust matter, any other officer to whom any corporate
trust matter is referred because of his or her knowledge of and familiarity with a particular
subject.
SEC means the Securities and Exchange Commission.
Securities means the debentures, notes or other debt instruments of the Company of any
Series authenticated and delivered under this Indenture.
Series or Series of Securities means each series of debentures, notes or other debt
instruments of the Company created pursuant to Sections 2.1 and 2.2 hereof.
Significant Subsidiary means (i) any direct or indirect Subsidiary of the Company that would
be a significant subsidiary as defined in Article 1, Rule 1-02 of Regulation S-X, promulgated
pursuant to the Securities Act of 1933, as amended, as such regulation is in effect on the date
hereof, or (ii) any group of direct or indirect Subsidiaries of the Company that, taken together as
a group, would be a significant subsidiary as defined in Article 1, Rule 1-02 of Regulation S-X,
promulgated pursuant to the Securities Act of 1933, as amended, as such regulation is in effect on
the date hereof.
3
Stated Maturity when used with respect to any Security or any installment of principal
thereof or interest thereon, means the date specified in such Security as the fixed date on which
the principal of such Security or such installment of principal or interest is due and payable.
Subsidiary of any specified person means any corporation of which at least a majority of the
outstanding stock having by the terms thereof ordinary voting power for the election of directors
of such corporation (irrespective of whether or not at the time stock of any other class or classes
of such corporation shall have or might have voting power by reason of the happening of any
contingency) is at the time directly or indirectly owned by such person, or by one or more other
Subsidiaries, or by such person and one or more other Subsidiaries.
TIA means the Trust Indenture Act of 1939 (15 U.S. Code Sections 77aaa-77bbbb) as in effect
on the date of this Indenture; provided, however, that in the event the Trust Indenture Act of 1939
is amended after such date, TIA means, to the extent required by any such amendment, the Trust
Indenture Act as so amended.
Trustee means the person named as the Trustee in the first paragraph of this instrument
until a successor Trustee shall have become such pursuant to the applicable provisions of this
Indenture, and thereafter Trustee shall mean or include each person who is then a Trustee
hereunder, and if at any time there is more than one such person, Trustee as used with respect to
the Securities of any Series shall mean the Trustee with respect to Securities of that Series.
U.S. Government Obligations means securities which are (i) direct obligations of the United
States of America for the payment of which its full faith and credit is pledged or (ii) obligations
of a person controlled or supervised by and acting as an agency or instrumentality of the United
States of America the payment of which is unconditionally guaranteed as a full faith and credit
obligation by the United States of America, and which in the case of (i) and (ii) are not callable
or redeemable at the option of the issuer thereof, and shall also include a depository receipt
issued by a bank or trust company as custodian with respect to any such U.S. Government Obligation
or a specific payment of interest on or principal of any such U.S. Government Obligation held by
such custodian for the account of the holder of a depository receipt, provided that (except as
required by law) such custodian is not authorized to make any deduction from the amount payable to
the holder of such depository receipt from any amount received by the custodian in respect of the
U.S. Government Obligation evidenced by such depository receipt.
4
Section 1.2. Other Definitions.
|
|
|
|
|
Term
|
|
Defined in Section
|
Bankruptcy Law
|
|
|
6.1
|
|
Custodian
|
|
|
6.1
|
|
Event of Default
|
|
|
6.1
|
|
Journal
|
|
|
10.15
|
|
Judgment Currency
|
|
|
10.16
|
|
Legal Holiday
|
|
|
10.7
|
|
mandatory sinking fund payment
|
|
|
11.1
|
|
Market Exchange Rate
|
|
|
10.15
|
|
New York Banking Day
|
|
|
10.16
|
|
optional sinking fund payment
|
|
|
11.1
|
|
Paying Agent
|
|
|
2.4
|
|
Registrar
|
|
|
2.4
|
|
Required Currency
|
|
|
10.16
|
|
Service Agent
|
|
|
2.4
|
|
successor person
|
|
|
5.1
|
|
Section 1.3. Incorporation by Reference of Trust Indenture Act
. Whenever this Indenture
refers to a provision of the TIA, the provision is incorporated by reference in and made a part of
this Indenture. The following TIA terms used in this Indenture have the following meanings:
Commission means the SEC.
indenture securities means the Securities.
indenture security holder means a Securityholder.
indenture to be qualified means this Indenture.
indenture trustee or institutional trustee means the Trustee.
obligor on the indenture securities means the Company and any successor obligor upon the
Securities.
All other terms used in this Indenture that are defined by the TIA, defined by TIA reference
to another statute or defined by SEC rule under the TIA and not otherwise defined herein are used
herein as so defined.
Section 1.4. Rules of Construction
. Unless the context otherwise requires:
(a) a term has the meaning assigned to it;
(b) an accounting term not otherwise defined has the meaning assigned to it in accordance with
generally accepted accounting principles;
5
(c) references to generally accepted accounting principles shall mean generally accepted
accounting principles in effect as of the time when and for the period as to which such accounting
principles are to be applied;
(d) or is not exclusive;
(e) words in the singular include the plural, and in the plural include the singular; and
(f) provisions apply to successive events and transactions.
ARTICLE II
THE SECURITIES
Section 2.1. Issuable in Series
. The aggregate principal amount of Securities that may be
authenticated and delivered under this Indenture is unlimited. The Securities may be issued in one
or more Series. All Securities of a Series shall be identical except as may be set forth in a
Board Resolution, a supplemental indenture or an Officers Certificate detailing the adoption of
the terms thereof pursuant to the authority granted under a Board Resolution. In the case of
Securities of a Series to be issued from time to time, the Board Resolution, Officers Certificate
or supplemental indenture may provide for the method by which specified terms (such as interest
rate, maturity date, record date or date from which interest shall accrue) are to be determined.
Securities may differ between Series in respect of any matters, provided that all Series of
Securities shall be equally and ratably entitled to the benefits of the Indenture.
Section 2.2. Establishment of Terms of Series of Securities
. At or prior to the issuance of
any Securities within a Series, the following shall be established (as to the Series generally, in
the case of Subsection 2.2.1 and either as to such Securities within the Series or as to the Series
generally in the case of Subsections 2.2.2 through 2.2.21) by a Board Resolution, a supplemental
indenture or an Officers Certificate pursuant to authority granted under a Board Resolution:
2.2.1 the title of the Series (which shall distinguish the Securities of that particular
Series from the Securities of any other Series);
2.2.2 the price or prices (expressed as a percentage of the principal amount thereof) at which
the Securities of the Series will be issued;
2.2.3 any limit upon the aggregate principal amount of the Securities of the Series which may
be authenticated and delivered under this Indenture (except for Securities authenticated and
delivered upon registration of transfer of, or in exchange for, or in lieu of, other Securities of
the Series pursuant to Section 2.7, 2.8, 2.11, 3.6 or 9.6);
2.2.4 the date or dates on which the principal of the Securities of the Series is payable;
2.2.5 the rate or rates (which may be fixed or variable) per annum or, if applicable, the
method used to determine such rate or rates (including, but not limited to, any commodity,
commodity index, stock exchange index or financial index) at which the Securities of the Series
shall bear interest, if any, the date or dates from which such interest, if any, shall accrue, the
date or dates
6
on which such interest, if any, shall commence and be payable and any regular record date for
the interest payable on any interest payment date;
2.2.6 the place or places where the principal of and interest, if any, on the Securities of
the Series shall be payable, or the method of such payment, if by wire transfer, mail or other
means;
2.2.7 if applicable, the period or periods within which, the price or prices at which and the
terms and conditions upon which the Securities of the Series may be redeemed, in whole or in part,
at the option of the Company;
2.2.8 the obligation, if any, of the Company to redeem or purchase the Securities of the
Series pursuant to any sinking fund or analogous provisions or at the option of a Holder thereof
and the period or periods within which, the price or prices at which and the terms and conditions
upon which Securities of the Series shall be redeemed or purchased, in whole or in part, pursuant
to such obligation;
2.2.9 the dates, if any, on which and the price or prices at which the Securities of the
Series will be repurchased by the Company at the option of the Holders thereof and other detailed
terms and provisions of such repurchase obligations;
2.2.10 if other than denominations of $1,000 and any integral multiple thereof, the
denominations in which the Securities of the Series shall be issuable;
2.2.11 the forms of the Securities of the Series in bearer or fully registered form (and, if
in fully registered form, whether the Securities will be issuable as Global Securities);
2.2.12 if other than the principal amount thereof, the portion of the principal amount of the
Securities of the Series that shall be payable upon declaration of acceleration of the maturity
thereof pursuant to Section 6.2;
2.2.13 the currency of denomination of the Securities of the Series, which may be Dollars or
any Foreign Currency, including, but not limited to, the ECU, and if such currency of denomination
is a composite currency other than the ECU, the agency or organization, if any, responsible for
overseeing such composite currency;
2.2.14 the designation of the currency, currencies or currency units in which payment of the
principal of and interest, if any, on the Securities of the Series will be made;
2.2.15 if payments of principal of or interest, if any, on the Securities of the Series are to
be made in one or more currencies or currency units other than that or those in which such
Securities are denominated, the manner in which the exchange rate with respect to such payments
will be determined;
2.2.16 the manner in which the amounts of payment of principal of or interest, if any, on the
Securities of the Series will be determined, if such amounts may be determined by reference to an
index based on a currency or currencies or by reference to a commodity, commodity index, stock
exchange index or financial index;
7
2.2.17 the provisions, if any, relating to any security provided for the Securities of the
Series;
2.2.18 the provisions, if any, relating to the subordination of the debt securities;
2.2.19 any addition to or change in the Events of Default which applies to any Securities of
the Series and any change in the right of the Trustee or the requisite Holders of such Securities
to declare the principal amount thereof due and payable pursuant to Section 6.2;
2.2.20 any addition to or change in the covenants set forth in Articles IV or V which applies
to Securities of the Series;
2.2.21 any other terms of the Securities of the Series (which terms shall not be inconsistent
with the provisions of this Indenture, except as permitted by Section 9.1, but which may modify or
delete any provision of this Indenture insofar as it applies to such Series); and
2.2.22 any depositories, interest rate calculation agents, exchange rate calculation agents or
other agents with respect to Securities of such Series if other than those appointed herein.
All Securities of any one Series need not be issued at the same time and may be issued from
time to time, consistent with the terms of this Indenture, if so provided by or pursuant to the
Board Resolution, supplemental indenture or Officers Certificate referred to above, and the
authorized principal amount of any Series may not be increased to provide for issuances of
additional Securities of such Series, unless otherwise provided in such Board Resolution,
supplemental indenture or Officers Certificate.
Section 2.3. Execution and Authentication
. Two Officers shall sign the Securities for the
Company by manual or facsimile signature.
If an Officer whose signature is on a Security no longer holds that office at the time the
Security is authenticated, the Security shall nevertheless be valid.
A Security shall not be valid until authenticated by the manual signature of the Trustee or an
authenticating agent. The signature shall be conclusive evidence that the Security has been
authenticated under this Indenture.
The Trustee shall at any time, and from time to time, authenticate Securities for original
issue in the principal amount provided in the Board Resolution, supplemental indenture hereto or
Officers Certificate, upon receipt by the Trustee of a Company Order. Such Company Order may
authorize authentication and delivery pursuant to oral or electronic instructions from the Company
or its duly authorized agent or agents, which oral instructions shall be promptly confirmed in
writing. Each Security shall be dated the date of its authentication unless otherwise provided by
a Board Resolution, a supplemental indenture hereto or an Officers Certificate.
The aggregate principal amount of Securities of any Series outstanding at any time may not
exceed any limit upon the maximum principal amount for such Series set forth in the Board
Resolution, supplemental indenture hereto or Officers Certificate delivered pursuant to
Section 2.2, except as provided in Section 2.8.
8
Prior to the issuance of Securities of any Series, the Trustee shall have received and
(subject to Section 7.2) shall be fully protected in relying on: (a) the Board Resolution,
supplemental indenture hereto or Officers Certificate establishing the form of Securities of that
Series or of Securities within that Series and the terms of Securities of that Series or of
Securities within that Series, (b) an Officers Certificate complying with Section 10.4, and (c) an
Opinion of Counsel complying with Section 10.4.
The Trustee shall have the right to decline to authenticate and deliver any Securities of such
Series: (a) if the Trustee, being advised by counsel, determines that such action may not lawfully
be taken; or (b) if the Trustee in good faith by its board of directors or trustees, executive
committee or a trust committee of directors and/or vice-presidents shall determine that such action
would expose the Trustee to personal liability to Holders of any then outstanding Series of
Securities.
The Trustee may appoint an authenticating agent acceptable to the Company to authenticate
Securities. An authenticating agent may authenticate Securities whenever the Trustee may do so.
Each reference in this Indenture to authentication by the Trustee includes authentication by such
agent. An authenticating agent has the same rights as an Agent to deal with the Company or an
Affiliate of the Company.
Section 2.4. Registrar and Paying Agent
. The Company shall maintain, with respect to each
Series of Securities, at the place or places specified with respect to such Series pursuant to
Section 2.2, an office or agency where Securities of such Series may be presented or surrendered
for payment (Paying Agent), where Securities of such Series may be surrendered for registration
of transfer or exchange (Registrar) and where notices and demands to or upon the Company in
respect of Securities of such Series and this Indenture may be served (Service Agent). The
Registrar shall keep a register with respect to each Series of Securities and to their transfer and
exchange. The Company will give prompt written notice to the Trustee of the name and address, and
any change in the name or address, of each Registrar, Paying Agent or Service Agent. If at any
time the Company shall fail to maintain any such required Registrar, Paying Agent or Service Agent
or shall fail to furnish the Trustee with the name and address thereof, such presentations,
surrenders, notices and demands may be made or served at the Corporate Trust Office of the Trustee,
and the Company hereby appoints the Trustee as its agent to receive all such presentations,
surrenders, notices and demands.
The Company may also from time to time designate one or more co-registrars, additional paying
agents or additional service agents and may from time to time rescind such designations; provided,
however, that no such designation or rescission shall in any manner relieve the Company of its
obligations to maintain a Registrar, Paying Agent and Service Agent in each place so specified
pursuant to Section 2.2 for Securities of any Series for such purposes. The Company will give
prompt written notice to the Trustee of any such designation or rescission and of any change in the
name or address of any such co-registrar, additional paying agent or additional service agent. The
term Registrar includes any co-registrar; the term Paying Agent includes any additional paying
agent; and the term Service Agent includes any additional service agent.
The Company hereby appoints the Trustee the initial Registrar, Paying Agent and Service Agent
for each Series unless another Registrar, Paying Agent or Service Agent, as the case may be, is
appointed prior to the time Securities of that Series are first issued.
9
Section 2.5. Paying Agent to Hold Money in Trust
. The Company shall require each Paying Agent
other than the Trustee to agree in writing that the Paying Agent will hold in trust, for the
benefit of Securityholders of any Series of Securities, or the Trustee, all money held by the
Paying Agent for the payment of principal of or interest on the Series of Securities, and will
notify the Trustee of any default by the Company in making any such payment. While any such
default continues, the Trustee may require a Paying Agent to pay all money held by it to the
Trustee. The Company at any time may require a Paying Agent to pay all money held by it to the
Trustee. Upon payment over to the Trustee, the Paying Agent (if other than the Company or a
Subsidiary of the Company) shall have no further liability for the money. If the Company or a
Subsidiary of the Company acts as Paying Agent, it shall segregate and hold all money held by it as
Paying Agent in a separate trust fund for the benefit of Securityholders of any Series of
Securities.
Section 2.6. Securityholder Lists
. The Trustee shall preserve in as current a form as is
reasonably practicable the most recent list available to it of the names and addresses of
Securityholders of each Series of Securities and shall otherwise comply with TIA Section 312(a).
If the Trustee is not the Registrar, the Company shall furnish to the Trustee at least ten days
before each interest payment date and at such other times as the Trustee may request in writing a
list, in such form and as of such date as the Trustee may reasonably require, of the names and
addresses of Securityholders of each Series of Securities.
Section 2.7. Transfer and Exchange
. Where Securities of a Series are presented to the
Registrar or a co-registrar with a request to register a transfer or to exchange them for an equal
principal amount of Securities of the same Series, the Registrar shall register the transfer or
make the exchange if its requirements for such transactions are met. To permit registrations of
transfers and exchanges, the Trustee shall authenticate Securities at the Registrars request. No
service charge shall be made for any registration of transfer or exchange (except as otherwise
expressly permitted herein), but the Company may require payment of a sum sufficient to cover any
transfer tax or similar governmental charge payable in connection therewith (other than any such
transfer tax or similar governmental charge payable upon exchanges pursuant to Sections 2.11, 3.6
or 9.6).
Neither the Company nor the Registrar shall be required (a) to issue, register the transfer
of, or exchange Securities of any Series for the period beginning at the opening of business
fifteen days immediately preceding the mailing of a notice of redemption of Securities of that
Series selected for redemption and ending at the close of business on the day of such mailing, or
(b) to register the transfer of or exchange Securities of any Series selected, called or being
called for redemption as a whole or the portion being redeemed of any such Securities selected,
called or being called for redemption in part.
Section 2.8. Mutilated, Destroyed, Lost and Stolen Securities
. If any mutilated Security is
surrendered to the Trustee, the Company shall execute and the Trustee shall authenticate and
deliver in exchange therefor a new Security of the same Series and of like tenor and principal
amount and bearing a number not contemporaneously outstanding.
If there shall be delivered to the Company and the Trustee (i) evidence to their satisfaction
of the destruction, loss or theft of any Security and (ii) such security or indemnity as may be
required by them to save each of them and any agent of either of them harmless, then, in the
absence of notice to the Company or the Trustee that such Security has been acquired by a bona fide
purchaser, the Company shall execute and upon its request the Trustee shall authenticate and make
available for
10
delivery, in lieu of any such destroyed, lost or stolen Security, a new Security of the same
Series and of like tenor and principal amount and bearing a number not contemporaneously
outstanding.
In case any such mutilated, destroyed, lost or stolen Security has become or is about to
become due and payable, the Company in its discretion may, instead of issuing a new Security, pay
such Security.
Upon the issuance of any new Security under this Section, the Company may require the payment
of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation
thereto and any other expenses (including the fees and expenses of the Trustee) connected
therewith.
Every new Security of any Series issued pursuant to this Section in lieu of any destroyed,
lost or stolen Security shall constitute an original additional contractual obligation of the
Company, whether or not the destroyed, lost or stolen Security shall be at any time enforceable by
anyone, and shall be entitled to all the benefits of this Indenture equally and proportionately
with any and all other Securities of that Series duly issued hereunder.
The provisions of this Section are exclusive and shall preclude (to the extent lawful) all
other rights and remedies with respect to the replacement or payment of mutilated, destroyed, lost
or stolen Securities.
Section 2.9. Outstanding Securities
. The Securities outstanding at any time are all the
Securities authenticated by the Trustee except for those canceled by it, those delivered to it for
cancellation, those reductions in the interest on a Global Security effected by the Trustee in
accordance with the provisions hereof and those described in this Section as not outstanding.
If a Security is replaced pursuant to Section 2.8, it ceases to be outstanding until the
Trustee receives proof satisfactory to it that the replaced Security is held by a bona fide
purchaser.
If the Paying Agent (other than the Company, a Subsidiary of the Company or an Affiliate of
any thereof) holds on the Maturity of Securities of a Series money sufficient to pay such
Securities payable on that date, then on and after that date such Securities of the Series cease to
be outstanding and interest on them ceases to accrue.
A Security does not cease to be outstanding because the Company or an Affiliate of the Company
holds the Security.
In determining whether the Holders of the requisite principal amount of outstanding Securities
have given any request, demand, authorization, direction, notice, consent or waiver hereunder, the
principal amount of a Discount Security that shall be deemed to be outstanding for such purposes
shall be the amount of the principal thereof that would be due and payable as of the date of such
determination upon a declaration of acceleration of the Maturity thereof pursuant to Section 6.2.
Section 2.10. Treasury Securities
. In determining whether the Holders of the required
principal amount of Securities of a Series have concurred in any request, demand, authorization,
direction, notice, consent or waiver Securities of a Series owned by the Company or an Affiliate of
the Company shall be disregarded, except that for the purposes of determining whether the Trustee
11
shall be protected in relying on any such request, demand, authorization, direction, notice,
consent or waiver only Securities of a Series that the Trustee knows are so owned shall be so
disregarded.
Section 2.11. Temporary Securities
. Until definitive Securities are ready for delivery, the
Company may prepare and the Trustee shall authenticate temporary Securities upon a Company Order.
Temporary Securities shall be substantially in the form of definitive Securities but may have
variations that the Company considers appropriate for temporary Securities. Without unreasonable
delay, the Company shall prepare and the Trustee, upon request, shall authenticate definitive
Securities of the same Series and date of Maturity in exchange for temporary Securities. Until so
exchanged, temporary Securities shall have the same rights under this Indenture as the definitive
Securities.
Section 2.12. Cancellation
. The Company at any time may deliver Securities to the Trustee for
cancellation. The Registrar and the Paying Agent shall forward to the Trustee any Securities
surrendered to them for registration of transfer, exchange or payment. The Trustee shall cancel
all Securities surrendered for transfer, exchange, payment, replacement or cancellation and shall
destroy such canceled Securities (subject to the record retention requirement of the Exchange Act)
and deliver a certificate of such destruction to the Company, unless the Company otherwise directs.
The Company may not issue new Securities to replace Securities that it has paid or delivered to
the Trustee for cancellation.
Section 2.13. Defaulted Interest
. If the Company defaults in a payment of interest on a
Series of Securities, it shall pay the defaulted interest, plus, to the extent permitted by law,
any interest payable on the defaulted interest, to the persons who are Securityholders of the
Series on a subsequent special record date. The Company shall fix the record date and payment
date. At least 30 days before the record date, the Company shall mail to the Trustee and to each
Securityholder of the Series a notice that states the record date, the payment date and the amount
of interest to be paid. The Company may pay defaulted interest in any other lawful manner.
Section 2.14. Global Securities
.
2.14.1
Terms of Securities
. A Board Resolution, a supplemental indenture hereto or an
Officers Certificate shall establish whether Securities of a Series shall be issued in whole or in
part in the form of one or more Global Securities and the Depository for such Global Security or
Securities.
2.14.2
Transfer and Exchange
. Notwithstanding any provisions to the contrary
contained in Section 2.7 of the Indenture and in addition thereto, any Global Security shall be
exchangeable pursuant to Section 2.7 of the Indenture for Securities registered in the names of
Holders other than the Depository for such Security or its nominee only if (i) such Depository
notifies the Company that it is unwilling or unable to continue as Depository for such Global
Security or if at any time such Depository ceases to be a clearing agency registered under the
Exchange Act, and, in either case, the Company fails to appoint a successor Depository within 90
days of such event, (ii) the Company executes and delivers to the Trustee an Officers Certificate
to the effect that such Global Security shall be so exchangeable or (iii) an Event of Default with
respect to the Securities represented by such Global Security shall have happened and be
continuing. Any Global Security that is exchangeable pursuant to the preceding sentence shall be
exchangeable for Securities registered in such names as the Depository shall direct in writing in
an aggregate principal amount equal to the principal amount of the Global Security with like tenor
and terms.
12
Except as provided in this Section 2.14.2, a Global Security may not be transferred except as
a whole by the Depository with respect to such Global Security to a nominee of such Depository, by
a nominee of such Depository to such Depository or another nominee of such Depository or by the
Depository or any such nominee to a successor Depository or a nominee of such a successor
Depository.
2.14.3
Legend
. Any Global Security issued hereunder shall bear a legend in
substantially the following form:
This Security is a Global Security within the meaning of the Indenture hereinafter referred
to and is registered in the name of the Depository or a nominee of the Depository. This
Security is exchangeable for Securities registered in the name of a person other than the
Depository or its nominee only in the limited circumstances described in the Indenture, and
may not be transferred except as a whole by the Depository to a nominee of the Depository,
by a nominee of the Depository to the Depository or another nominee of the Depository or by
the Depository or any such nominee to a successor Depository or a nominee of such a
successor Depository.
2.14.4
Acts of Holders
. The Depository, as a Holder, may appoint agents and otherwise
authorize participants to give or take any request, demand, authorization, direction, notice,
consent, waiver or other action which a Holder is entitled to give or take under the Indenture.
2.14.5
Payments
. Notwithstanding the other provisions of this Indenture, unless
otherwise specified as contemplated by Section 2.2, payment of the principal of and interest, if
any, on any Global Security shall be made to the Holder thereof.
2.14.6
Consents, Declaration and Directions
. Except as provided in Section 2.14.5,
the Company, the Trustee and any Agent shall treat a person as the Holder of such principal amount
of outstanding Securities of such Series represented by a Global Security as shall be specified in
a written statement of the Depository with respect to such Global Security, for purposes of
obtaining any consents, declarations, waivers or directions required to be given by the Holders
pursuant to this Indenture.
2.14.7
CUSIP Numbers
. The Company in issuing the Securities may use CUSIP numbers
(if then generally in use), and, if so, the Trustee shall use CUSIP numbers in notices of
redemption as a convenience to Holders; provided that any such notice may state that no
representation is made as to the correctness of such numbers either as printed on the Securities or
as contained in any notice of a redemption and that reliance may be placed only on the other
elements of identification printed on the Securities, and any such redemption shall not be affected
by any defect in or omission of such numbers.
ARTICLE III
REDEMPTION
Section 3.1. Notice to Trustee
. The Company may, with respect to any Series of Securities,
reserve the right to redeem and pay the Series of Securities or may covenant to redeem and pay the
Series of Securities or any part thereof prior to the Stated Maturity thereof at such time and on
such terms as provided for in such Securities. If a Series of Securities is redeemable and the
13
Company wants or is obligated to redeem prior to the Stated Maturity thereof all or part of
the Series of Securities pursuant to the terms of such Securities, it shall notify the Trustee of
the redemption date and the principal amount of Series of Securities to be redeemed. The Company
shall give the notice at least 45 days before the redemption date (or such shorter notice as may be
acceptable to the Trustee).
Section 3.2. Selection of Securities to be Redeemed
. Unless otherwise indicated for a
particular Series by a Board Resolution, a supplemental indenture or an Officers Certificate, if
less than all the Securities of a Series are to be redeemed, the Trustee shall select Securities of
the Series to be redeemed in any manner that the Trustee deems fair and appropriate. The Trustee
shall make the selection from Securities of the Series outstanding not previously called for
redemption. The Trustee may select for redemption portions of the principal of Securities of the
Series that have denominations larger than $1,000. Securities of the Series and portions of them
it selects shall be in amounts of $1,000 or whole multiples of $1,000 or, with respect to
Securities of any Series issuable in other denominations pursuant to Section 2.2.10, the minimum
principal denomination for each Series and integral multiples thereof. Provisions of this
Indenture that apply to Securities of a Series called for redemption also apply to portions of
Securities of that Series called for redemption.
Section 3.3. Notice of Redemption
. Unless otherwise indicated for a particular Series by a
Board Resolution, a supplemental indenture hereto or an Officers Certificate, at least 30 days but
not more than 60 days before a redemption date, the Company shall mail a notice of redemption by
first-class mail to each Holder whose Securities are to be redeemed and if any Bearer Securities
are outstanding, publish on one occasion a notice in an Authorized Newspaper.
The notice shall identify the Securities of the Series to be redeemed and shall state:
(a) the redemption date;
(b) the redemption price;
(c) the name and address of the Paying Agent;
(d) that Securities of the Series called for redemption must be surrendered to the Paying
Agent to collect the redemption price;
(e) that interest on Securities of the Series called for redemption ceases to accrue on and
after the redemption date; and
(f) any other information as may be required by the terms of the particular Series or
Securities of a Series being redeemed.
At the Companys request, the Trustee shall give the notice of redemption in the Companys
name and at its expense.
Section 3.4. Effect of Notice of Redemption
. Once notice of redemption is mailed or published
as provided in Section 3.3, Securities of a Series called for redemption become due and payable on
the redemption date and at the redemption price. A notice of redemption may not be conditional.
Upon surrender to the Paying Agent, such Securities shall be paid at the redemption price plus
accrued interest to the redemption date.
14
Section 3.5. Deposit of Redemption Price
. On or before the redemption date, the Company shall
deposit with the Paying Agent money sufficient to pay the redemption price of and accrued interest,
if any, on all Securities to be redeemed on that date.
Section 3.6. Securities Redeemed in Part
. Upon surrender of a Security that is redeemed in
part, the Trustee shall authenticate for the Holder a new Security of the same Series and the same
Maturity equal in principal amount to the unredeemed portion of the Security surrendered.
ARTICLE IV
COVENANTS
Section 4.1. Payment of Principal and Interest
. The Company covenants and agrees for the
benefit of the Holders of each Series of Securities that it will duly and punctually pay the
principal of and interest, if any, on Securities of that Series in accordance with the terms of
such Securities and this Indenture.
Section 4.2. SEC Reports
. The Company shall deliver to the Trustee, within 15 days after it
files them with the SEC, copies of the annual reports and of the information, documents, and other
reports (or copies of such portions of any of the foregoing as the SEC may by rules and regulations
prescribe) which the Company is required to file with the SEC pursuant to Section 13 or 15(d) of
the Exchange Act. The Company also shall comply with the other provisions of TIA Section 314(a).
Section 4.3. Compliance Certificate
. The Company shall deliver to the Trustee, within 90 days
after the end of each fiscal year of the Company, an Officers Certificate stating that a review of
the activities of the Company and its Subsidiaries during the preceding fiscal year has been made
under the supervision of the signing Officers with a view to determining whether the Company has
kept, observed, performed and fulfilled its obligations under this Indenture, and further stating,
as to each such Officer signing such certificate, that to the best of such Officers knowledge the
Company has kept, observed, performed and fulfilled each and every covenant contained in this
Indenture and is not in default in the performance or observance of any of the terms, provisions
and conditions hereof (or, if a Default or Event of Default shall have occurred, describing all
such Defaults or Events of Default of which such Officer may have knowledge).
The Company will, so long as any of the Securities are outstanding, deliver to the Trustee,
forthwith upon becoming aware of any Default or Event of Default, an Officers Certificate
specifying such Default or Event of Default and what action the Company is taking or proposes to
take with respect thereto.
Section 4.4. Stay, Extension and Usury Laws
. The Company covenants (to the extent that it may
lawfully do so) that it will not at any time insist upon, plead, or in any manner whatsoever claim
or take the benefit or advantage of, any stay, extension or usury law wherever enacted, now or at
any time hereafter in force, which may affect the covenants or the performance of this Indenture or
the Securities; and the Company (to the extent it may lawfully do so) hereby expressly waives all
benefit or advantage of any such law and covenants that it will not, by resort to any such law,
hinder, delay or impede the execution of any power herein granted to the Trustee, but will suffer
and permit the execution of every such power as though no such law has been enacted.
15
Section 4.5. Corporate Existence
. Subject to Article V, the Company will do or cause to be
done all things necessary to preserve and keep in full force and effect its corporate existence and
the corporate, partnership or other existence of each Significant Subsidiary in accordance with the
respective organizational documents of each Significant Subsidiary and the rights (charter and
statutory), licenses and franchises of the Company and its Significant Subsidiaries; provided,
however, that the Company shall not be required to preserve any such right, license or franchise,
or the corporate, partnership or other existence of any Significant Subsidiary, if the Board of
Directors shall determine that the preservation thereof is no longer desirable in the conduct of
the business of the Company and its Subsidiaries taken as a whole and that the loss thereof is not
adverse in any material respect to the Holders.
Section 4.6. Taxes
. The Company shall, and shall cause each of its Significant Subsidiaries
to, pay prior to delinquency all taxes, assessments and governmental levies, except as contested in
good faith and by appropriate proceedings.
ARTICLE V
SUCCESSORS
Section 5.1. When Company May Merge, Etc
. The Company shall not consolidate with or merge
into, or convey, transfer or lease all or substantially all of its properties and assets to, any
person (a successor person), and may not permit any person to merge into, or convey, transfer or
lease its properties and assets substantially as an entirety to, the Company, unless:
(a) the successor person (if any) is a corporation, partnership, trust or other entity
organized and validly existing under the laws of any U.S. domestic jurisdiction and expressly
assumes the Companys obligations on the Securities and under this Indenture; and
(b) immediately after giving effect to the transaction, no Default or Event of Default, shall
have occurred and be continuing.
The Company shall deliver to the Trustee, prior to the consummation of the proposed
transaction, an Officers Certificate to the foregoing effect and an Opinion of Counsel stating
that the proposed transaction and such supplemental indenture comply with this Indenture.
Section 5.2. Successor Corporation Substituted
. Upon any consolidation or merger, or any
sale, lease, conveyance or other disposition of all or substantially all of the assets of the
Company in accordance with Section 5.1, the successor corporation formed by such consolidation or
into or with which the Company is merged or to which such sale, lease, conveyance or other
disposition is made shall succeed to, and be substituted for, and may exercise every right and
power of, the Company under this Indenture with the same effect as if such successor person has
been named as the Company herein; provided, however, that the predecessor Company in the case of a
sale, lease, conveyance or other disposition shall not be released from the obligation to pay the
principal of and interest, if any, on the Securities.
16
ARTICLE VI
DEFAULTS AND REMEDIES
Section 6.1. Events of Default
. Event of Default, wherever used herein with respect to
Securities of any Series, means any one of the following events, unless in the establishing Board
Resolution, supplemental indenture or Officers Certificate, it is provided that such Series shall
not have the benefit of said Event of Default:
(a) default in the payment of any interest on any Security of that Series when it becomes due
and payable, and continuance of such default for a period of 30 days (unless the entire amount of
such payment is deposited by the Company with the Trustee or with a Paying Agent prior to the
expiration of such period of 30 days); or
(b) default in the payment of the principal of any Security of that Series at its Maturity; or
(c) default in the deposit of any sinking fund payment, when and as due in respect of any
Security of that Series; or
(d) default in the performance or breach of any covenant or warranty of the Company in this
Indenture (other than a covenant or warranty that has been included in this Indenture solely for
the benefit of Series of Securities other than that Series), which default continues uncured for a
period of 60 days after there has been given, by registered or certified mail, to the Company by
the Trustee or to the Company and the Trustee by the Holders of at least a majority in principal
amount of the outstanding Securities of that Series a written notice specifying such default or
breach and requiring it to be remedied and stating that such notice is a Notice of Default
hereunder; or
(e) the Company or any of its Significant Subsidiaries pursuant to or within the meaning of
any Bankruptcy Law:
(i) commences a voluntary case,
(ii) consents to the entry of an order for relief against it in an involuntary case,
(iii) consents to the appointment of a Custodian of it or for all or substantially all of its
property,
(iv) makes a general assignment for the benefit of its creditors, or
(v) generally is unable to pay its debts as the same become due; or
(f) a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that:
(i) is for relief against the Company or any of its Significant Subsidiaries in an involuntary
case,
17
(ii) appoints a Custodian of the Company or any of its Significant Subsidiaries or for all or
substantially all of its property, or
(iii) orders the liquidation of the Company or any of its Significant Subsidiaries, and the
order or decree remains unstayed and in effect for 60 days; or
(g) any other Event of Default provided with respect to Securities of that Series, which is
specified in a Board Resolution, a supplemental indenture hereto or an Officers Certificate, in
accordance with Section 2.2.18.
The term Bankruptcy Law means title 11, U.S. Code or any similar Federal or State law for
the relief of debtors. The term Custodian means any receiver, trustee, assignee, liquidator or
similar official under any Bankruptcy Law.
Section 6.2. Acceleration of Maturity; Rescission and Annulment
. If an Event of Default with
respect to Securities of any Series at the time outstanding occurs and is continuing (other than an
Event of Default referred to in Section 6.1(e) or (f)) then in every such case the Trustee or the
Holders of not less than a majority in principal amount of the outstanding Securities of that
Series may declare the principal amount (or, if any Securities of that Series are Discount
Securities, such portion of the principal amount as may be specified in the terms of such
Securities) of and accrued and unpaid interest, if any, on all of the Securities of that Series to
be due and payable immediately, by a notice in writing to the Company (and to the Trustee if given
by Holders), and upon any such declaration such principal amount (or specified amount) and accrued
and unpaid interest, if any, shall become immediately due and payable. If an Event of Default
specified in Section 6.1(e) or (f) shall occur, the principal amount (or specified amount) of and
accrued and unpaid interest, if any, on all outstanding Securities shall ipso facto become and be
immediately due and payable without any declaration or other act on the part of the Trustee or any
Holder.
At any time after such a declaration of acceleration with respect to any Series has been made
and before a judgment or decree for payment of the money due has been obtained by the Trustee as
hereinafter in this Article provided, the Holders of a majority in principal amount of the
outstanding Securities of that Series, by written notice to the Company and the Trustee, may
rescind and annul such declaration and its consequences if:
(a) the Company has paid or deposited with the Trustee a sum sufficient to pay:
(i) all overdue interest, if any, on all Securities of that Series,
(ii) the principal of any Securities of that Series which have become due otherwise than by
such declaration of acceleration and interest thereon at the rate or rates prescribed therefor in
such Securities,
(iii) to the extent that payment of such interest is lawful, interest upon any overdue
principal and overdue interest at the rate or rates prescribed therefor in such Securities, and
(iv) all sums paid or advanced by the Trustee hereunder and the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel; and
18
(b) all Events of Default with respect to Securities of that Series, other than the
non-payment of the principal of Securities of that Series which have become due solely by such
declaration of acceleration, have been cured or waived as provided in Section 6.13.
No such rescission shall affect any subsequent Default or impair any right consequent thereon.
Section 6.3. Collection of Indebtedness and Suits for Enforcement by Trustee
. The Company
covenants that if
(a) default is made in the payment of any interest on any Security when such interest becomes
due and payable and such default continues for a period of 30 days, or
(b) default is made in the payment of principal of any Security at the Maturity thereof, or
(c) default is made in the deposit of any sinking fund payment when and as due by the terms of
a Security,
then, the Company will, upon demand of the Trustee, pay to it, for the benefit of the Holders of
such Securities, the whole amount then due and payable on such Securities for principal and
interest and, to the extent that payment of such interest shall be legally enforceable, interest on
any overdue principal or any overdue interest, at the rate or rates prescribed therefor in such
Securities, and, in addition thereto, such further amount as shall be sufficient to cover the costs
and expenses of collection, including the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel.
If the Company fails to pay such amounts forthwith upon such demand, the Trustee, in its own
name and as trustee of an express trust, may institute a judicial proceeding for the collection of
the sums so due and unpaid, may prosecute such proceeding to judgment or final decree and may
enforce the same against the Company or any other obligor upon such Securities and collect the
moneys adjudged or deemed to be payable in the manner provided by law out of the property of the
Company or any other obligor upon such Securities, wherever situated.
If an Event of Default with respect to any Securities of any Series occurs and is continuing,
the Trustee may in its discretion proceed to protect and enforce its rights and the rights of the
Holders of Securities of such Series by such appropriate judicial proceedings as the Trustee shall
deem most effectual to protect and enforce any such rights, whether for the specific enforcement of
any covenant or agreement in this Indenture or in aid of the exercise of any power granted herein,
or to enforce any other proper remedy.
Section 6.4. Trustee May File Proofs of Claim
. In case of the pendency of any receivership,
insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or other
judicial proceeding relative to the Company or any other obligor upon the Securities or the
property of the Company or of such other obligor or their creditors, the Trustee (irrespective of
whether the principal of the Securities shall then be due and payable as therein expressed or by
declaration or otherwise and irrespective of whether the Trustee shall have made any demand on the
Company for the payment of overdue principal or interest) shall be entitled and empowered, by
intervention in such proceeding or otherwise,
19
(a) to file and prove a claim for the whole amount of principal and interest owing and unpaid
in respect of the Securities and to file such other papers or documents as may be necessary or
advisable in order to have the claims of the Trustee (including any claim for the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents and counsel) and of
the Holders allowed in such judicial proceeding, and
(b) to collect and receive any moneys or other property payable or deliverable on any such
claims and to distribute the same, and any custodian, receiver, assignee, trustee, liquidator,
sequestrator or other similar official in any such judicial proceeding is hereby authorized by each
Holder to make such payments to the Trustee and, in the event that the Trustee shall consent to the
making of such payments directly to the Holders, to pay to the Trustee any amount due it for the
reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and
counsel, and any other amounts due the Trustee under Section 7.7.
Nothing herein contained shall be deemed to authorize the Trustee to authorize or consent to
or accept or adopt on behalf of any Holder any plan of reorganization, arrangement, adjustment or
composition affecting the Securities or the rights of any Holder thereof or to authorize the
Trustee to vote in respect of the claim of any Holder in any such proceeding.
Section 6.5. Trustee May Enforce Claims Without Possession of Securities
. All rights of
action and claims under this Indenture or the Securities may be prosecuted and enforced by the
Trustee without the possession of any of the Securities or the production thereof in any proceeding
relating thereto, and any such proceeding instituted by the Trustee shall be brought in its own
name as trustee of an express trust, and any recovery of judgment shall, after provision for the
payment of the reasonable compensation, expenses, disbursements and advances of the Trustee, its
agents and counsel, be for the ratable benefit of the Holders of the Securities in respect of which
such judgment has been recovered.
Section 6.6. Application of Money Collected
. Any money collected by the Trustee pursuant to
this Article shall be applied in the following order, at the date or dates fixed by the Trustee
and, in case of the distribution of such money on account of principal or interest, upon
presentation of the Securities and the notation thereon of the payment if only partially paid and
upon surrender thereof if fully paid:
First: To the payment of all amounts due the Trustee under Section 7.7; and
Second: To the payment of the amounts then due and unpaid for principal of and interest on
the Securities in respect of which or for the benefit of which such money has been collected,
ratably, without preference or priority of any kind, according to the amounts due and payable on
such Securities for principal and interest, respectively; and
Third: To the Company.
Section 6.7. Limitation on Suits
. No Holder of any Security of any Series shall have any
right to institute any proceeding, judicial or otherwise, with respect to this Indenture, or for
the appointment of a receiver or trustee, or for any other remedy hereunder, unless
(a) such Holder has previously given written notice to the Trustee of a continuing Event of
Default with respect to the Securities of that Series;
20
(b) the Holders of not less than a majority in principal amount of the outstanding Securities
of that Series shall have made written request to the Trustee to institute proceedings in respect
of such Event of Default in its own name as Trustee hereunder;
(c) such Holder or Holders have offered to the Trustee reasonable indemnity against the costs,
expenses and liabilities to be incurred in compliance with such request;
(d) the Trustee for 60 days after its receipt of such notice, request and offer of indemnity
has failed to institute any such proceeding; and
(e) no direction inconsistent with such written request has been given to the Trustee during
such 60-day period by the Holders of a majority in principal amount of the outstanding Securities
of that Series;
it being understood and intended that no one or more of such Holders shall have any right in any
manner whatever by virtue of, or by availing of, any provision of this Indenture to affect, disturb
or prejudice the rights of any other of such Holders, or to obtain or to seek to obtain priority or
preference over any other of such Holders or to enforce any right under this Indenture, except in
the manner herein provided and for the equal and ratable benefit of all such Holders.
Section 6.8. Unconditional Right of Holders to Receive Principal and Interest
.
Notwithstanding any other provision in this Indenture, the Holder of any Security shall have the
right, which is absolute and unconditional, to receive payment of the principal of, premium and
interest, if any, on such Security on the Stated Maturity or Stated Maturities expressed in such
Security (or, in the case of redemption, on the redemption date) and to institute suit for the
enforcement of any such payment, and such rights shall not be impaired without the consent of such
Holder.
Section 6.9. Restoration of Rights and Remedies
. If the Trustee or any Holder has instituted
any proceeding to enforce any right or remedy under this Indenture and such proceeding has been
discontinued or abandoned for any reason, or has been determined adversely to the Trustee or to
such Holder, then and in every such case, subject to any determination in such proceeding, the
Company, the Trustee and the Holders shall be restored severally and respectively to their former
positions hereunder and thereafter all rights and remedies of the Trustee and the Holders shall
continue as though no such proceeding had been instituted.
Section 6.10. Rights and Remedies Cumulative
. Except as otherwise provided with respect to
the replacement or payment of mutilated, destroyed, lost or stolen Securities in Section 2.8, no
right or remedy herein conferred upon or reserved to the Trustee or to the Holders is intended to
be exclusive of any other right or remedy, and every right and remedy shall, to the extent
permitted by law, be cumulative and in addition to every other right and remedy given hereunder or
now or hereafter existing at law or in equity or otherwise. The assertion or employment of any
right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment
of any other appropriate right or remedy.
Section 6.11. Delay or Omission Not Waiver
. No delay or omission of the Trustee or of any
Holder of any Securities to exercise any right or remedy accruing upon any Event of Default shall
impair any such right or remedy or constitute a waiver of any such Event of Default or an
acquiescence therein. Every right and remedy given by this Article or by law to the Trustee or to
the
21
Holders may be exercised from time to time, and as often as may be deemed expedient, by the
Trustee or by the Holders, as the case may be.
Section 6.12. Control by Holders
. The Holders of a majority in principal amount of the
outstanding Securities of any Series shall have the right to direct the time, method and place of
conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power
conferred on the Trustee, with respect to the Securities of such Series, provided that
(a) such direction shall not be in conflict with any rule of law or with this Indenture,
(b) the Trustee may take any other action deemed proper by the Trustee which is not
inconsistent with such direction, and
(c) subject to the provisions of Section 6.1, the Trustee shall have the right to decline to
follow any such direction if the Trustee in good faith shall, by a Responsible Officer of the
Trustee, determine that the proceeding so directed would involve the Trustee in personal liability.
Section 6.13. Waiver of Past Defaults
. The Holders of not less than a majority in principal
amount of the outstanding Securities of any Series may on behalf of the Holders of all the
Securities of such Series waive any past Default hereunder with respect to such Series and its
consequences, except a Default (i) in the payment of the principal of or interest on any Security
of such Series (provided, however, that the Holders of a majority in principal amount of the
outstanding Securities of any Series may rescind an acceleration and its consequences, including
any related payment default that resulted from such acceleration) and (ii) in respect of a covenant
or provision hereof which cannot be modified or amended without the consent of the Holder of each
outstanding Security of such Series affected. Upon any such waiver, such Default shall cease to
exist, and any Event of Default arising therefrom shall be deemed to have been cured, for every
purpose of this Indenture; but no such waiver shall extend to any subsequent or other Default or
impair any right consequent thereon.
Section 6.14. Undertaking For Costs
. All parties to this Indenture agree, and each Holder of
any Security by his acceptance thereof shall be deemed to have agreed, that any court may in its
discretion require, in any suit for the enforcement of any right or remedy under this Indenture, or
in any suit against the Trustee for any action taken, suffered or omitted by it as Trustee, the
filing by any party litigant in such suit of an undertaking to pay the costs of such suit, and that
such court may in its discretion assess reasonable costs, including reasonable attorneys fees,
against any party litigant in such suit, having due regard to the merits and good faith of the
claims or defenses made by such party litigant; but the provisions of this Section shall not apply
to any suit instituted by the Company, to any suit instituted by the Trustee, to any suit
instituted by any Holder, or group of Holders, holding in the aggregate more than 10% in principal
amount of the outstanding Securities of any Series, or to any suit instituted by any Holder for the
enforcement of the payment of the principal of or interest on any Security on or after the Stated
Maturity or Stated Maturities expressed in such Security (or, in the case of redemption, on the
redemption date).
22
ARTICLE VII
TRUSTEE
Section 7.1. Duties of Trustee
.
(a) If an Event of Default has occurred and is continuing, the Trustee shall exercise the
rights and powers vested in it by this Indenture and use the same degree of care and skill in their
exercise as a prudent man would exercise or use under the circumstances in the conduct of his own
affairs.
(b) Except during the continuance of an Event of Default:
(i) The Trustee need perform only those duties that are specifically set forth in this
Indenture and no others.
(ii) In the absence of bad faith on its part, the Trustee may conclusively rely, as to the
truth of the statements and the correctness of the opinions expressed therein, upon Officers
Certificates or Opinions of Counsel furnished to the Trustee and conforming to the requirements of
this Indenture; however, in the case of any such Officers Certificates or Opinions of Counsel
which by any provisions hereof are specifically required to be furnished to the Trustee, the
Trustee shall examine such Officers Certificates and Opinions of Counsel to determine whether or
not they conform to the requirements of this Indenture.
(c) The Trustee may not be relieved from liability for its own negligent action, its own
negligent failure to act or its own willful misconduct, except that:
(i) This paragraph does not limit the effect of paragraph (b) of this Section.
(ii) The Trustee shall not be liable for any error of judgment made in good faith by a
Responsible Officer, unless it is proved that the Trustee was negligent in ascertaining the
pertinent facts.
(iii) The Trustee shall not be liable with respect to any action taken, suffered or omitted to
be taken by it with respect to Securities of any Series in good faith in accordance with the
direction of the Holders of a majority in principal amount of the outstanding Securities of such
Series relating to the time, method and place of conducting any proceeding for any remedy available
to the Trustee, or exercising any trust or power conferred upon the Trustee, under this Indenture
with respect to the Securities of such Series.
(d) Every provision of this Indenture that in any way relates to the Trustee is subject to
paragraph (a), (b) and (c) of this Section.
(e) The Trustee may refuse to perform any duty or exercise any right or power unless it
receives indemnity satisfactory to it against any loss, liability or expense.
(f) The Trustee shall not be liable for interest on any money received by it except as the
Trustee may agree in writing with the Company. Money held in trust by the Trustee need not be
segregated from other funds except to the extent required by law.
23
(g) No provision of this Indenture shall require the Trustee to risk its own funds or
otherwise incur any financial liability in the performance of any of its duties, or in the exercise
of any of its rights or powers, if it shall have reasonable grounds for believing that repayment of
such funds or adequate indemnity against such risk is not reasonably assured to it.
(h) The Paying Agent, the Registrar and any authenticating agent shall be entitled to the
protections, immunities and standard of care as are set forth in paragraphs (a), (b) and (c) of
this Section with respect to the Trustee.
Section 7.2. Rights of Trustee
.
(a) The Trustee may rely on and shall be protected in acting or refraining from acting upon
any document believed by it to be genuine and to have been signed or presented by the proper
person. The Trustee need not investigate any fact or matter stated in the document.
(b) Before the Trustee acts or refrains from acting, it may require an Officers Certificate
or an Opinion of Counsel. The Trustee shall not be liable for any action it takes or omits to take
in good faith in reliance on such Officers Certificate or Opinion of Counsel.
(c) The Trustee may act through agents and shall not be responsible for the misconduct or
negligence of any agent appointed with due care. No Depository shall be deemed an agent of the
Trustee and the Trustee shall not be responsible for any act or omission by any Depository.
(d) The Trustee shall not be liable for any action it takes or omits to take in good faith
which it believes to be authorized or within its rights or powers.
(e) The Trustee may consult with counsel and the advice of such counsel or any Opinion of
Counsel shall be full and complete authorization and protection in respect of any action taken,
suffered or omitted by it hereunder in good faith and in reliance thereon.
(f) The Trustee shall be under no obligation to exercise any of the rights or powers vested in
it by this Indenture at the request or direction of any of the Holders of Securities unless such
Holders shall have offered to the Trustee reasonable security or indemnity against the costs,
expenses and liabilities which might be incurred by it in compliance with such request or
direction.
Section 7.3. Individual Rights of Trustee
. The Trustee in its individual or any other
capacity may become the owner or pledgee of Securities and may otherwise deal with the Company or
an Affiliate of the Company with the same rights it would have if it were not Trustee. Any Agent
may do the same with like rights. The Trustee is also subject to Sections 7.10 and 7.11.
Section 7.4. Trustees Disclaimer
. The Trustee makes no representation as to the validity or
adequacy of this Indenture or the Securities, it shall not be accountable for the Companys use of
the proceeds from the Securities, and it shall not be responsible for any statement in the
Securities other than its authentication.
Section 7.5. Notice of Defaults
. If a Default or Event of Default occurs and is continuing
with respect to the Securities of any Series and if it is known to a Responsible Officer of the
Trustee, the Trustee shall mail to each Securityholder of the Securities of that Series and, if any
Bearer
24
Securities are outstanding, publish on one occasion in an Authorized Newspaper, notice of a
Default or Event of Default within 90 days after it occurs or, if later, after a Responsible
Officer of the Trustee has knowledge of such Default or Event of Default. Except in the case of a
Default or Event of Default in payment of principal of or interest on any Security of any Series,
the Trustee may withhold the notice if and so long as its corporate trust committee or a committee
of its Responsible Officers in good faith determines that withholding the notice is in the
interests of Securityholders of that Series.
Section 7.6. Reports by Trustee to Holders
. Within 60 days after May 15 in each year, the
Trustee shall transmit by mail to all Securityholders, as their names and addresses appear on the
register kept by the Registrar and, if any Bearer Securities are outstanding, publish in an
Authorized Newspaper, a brief report dated as of such May 15, in accordance with, and to the extent
required under, TIA Section 313.
A copy of each report at the time of its mailing to Securityholders of any Series shall be
filed with the SEC and each stock exchange on which the Securities of that Series are listed. The
Company shall promptly notify the Trustee when Securities of any Series are listed on any stock
exchange.
Section 7.7. Compensation and Indemnity
. The Company shall pay to the Trustee from time to
time reasonable compensation for its services. The Trustees compensation shall not be limited by
any law on compensation of a trustee of an express trust. The Company shall reimburse the Trustee
upon request for all reasonable out-of-pocket expenses incurred by it. Such expenses shall include
the reasonable compensation and expenses of the Trustees agents and counsel.
The Company shall indemnify the Trustee (including the cost of defending itself) against any
loss, liability or expense incurred by it except as set forth in the next paragraph in the
performance of its duties under this Indenture as Trustee or Agent. The Trustee shall notify the
Company promptly of any claim for which it may seek indemnity. The Company shall defend the claim
and the Trustee shall cooperate in the defense. The Trustee may have separate counsel and the
Company shall pay the reasonable fees and expenses of such counsel. The Company need not pay for
any settlement made without its consent, which consent shall not be unreasonably withheld. This
indemnification shall apply to officers, directors, employees, shareholders and agents of the
Trustee.
The Company need not reimburse any expense or indemnify against any loss or liability incurred
by the Trustee or by any officer, director, employee, shareholder or agent of the Trustee through
negligence or bad faith.
To secure the Companys payment obligations in this Section, the Trustee shall have a lien
prior to the Securities of any Series on all money or property held or collected by the Trustee,
except that held in trust to pay principal and interest on particular Securities of that Series.
When the Trustee incurs expenses or renders services after an Event of Default specified in
Section 6.1(e) or (f) occurs, the expenses and the compensation for the services are intended to
constitute expenses of administration under any Bankruptcy Law.
Section 7.8. Replacement of Trustee
. A resignation or removal of the Trustee and appointment
of a successor Trustee shall become effective only upon the successor Trustees acceptance of
appointment as provided in this Section.
25
The Trustee may resign with respect to the Securities of one or more Series by so notifying
the Company at least 30 days prior to the date of the proposed resignation. The Holders of a
majority in principal amount of the Securities of any Series may remove the Trustee with respect to
that Series by so notifying the Trustee and the Company. The Company may remove the Trustee with
respect to Securities of one or more Series if:
(a) the Trustee fails to comply with Section 7.10;
(b) the Trustee is adjudged a bankrupt or an insolvent or an order for relief is entered with
respect to the Trustee under any Bankruptcy Law;
(c) a Custodian or public officer takes charge of the Trustee or its property; or
(d) the Trustee becomes incapable of acting.
If the Trustee resigns or is removed or if a vacancy exists in the office of Trustee for any
reason, the Company shall promptly appoint a successor Trustee. Within one year after the
successor Trustee takes office, the Holders of a majority in principal amount of the then
outstanding Securities may appoint a successor Trustee to replace the successor Trustee appointed
by the Company.
If a successor Trustee with respect to the Securities of any one or more Series does not take
office within 60 days after the retiring Trustee resigns or is removed, the retiring Trustee, the
Company or the Holders of at least 10% in principal amount of the Securities of the applicable
Series may petition any court of competent jurisdiction for the appointment of a successor Trustee.
If the Trustee with respect to the Securities of any one or more Series fails to comply with
Section 7.10, any Securityholder of the applicable Series may petition any court of competent
jurisdiction for the removal of the Trustee and the appointment of a successor Trustee.
A successor Trustee shall deliver a written acceptance of its appointment to the retiring
Trustee and to the Company. Immediately after that, the retiring Trustee shall transfer all
property held by it as Trustee to the successor Trustee subject to the lien provided for in
Section 7.7, the resignation or removal of the retiring Trustee shall become effective, and the
successor Trustee shall have all the rights, powers and duties of the Trustee with respect to each
Series of Securities for which it is acting as Trustee under this Indenture. A successor Trustee
shall mail a notice of its succession to each Securityholder of each such Series and, if any Bearer
Securities are outstanding, publish such notice on one occasion in an Authorized Newspaper.
Notwithstanding replacement of the Trustee pursuant to this Section 7.8, the Companys obligations
under Section 7.7 hereof shall continue for the benefit of the retiring trustee with respect to
expenses and liabilities incurred by it prior to such replacement.
Section 7.9. Successor Trustee by Merger, Etc
. If the Trustee consolidates with, merges or
converts into, or transfers all or substantially all of its corporate trust business to, another
corporation, the successor corporation without any further act shall be the successor Trustee.
Section 7.10. Eligibility; Disqualification
. This Indenture shall always have a Trustee who
satisfies the requirements of TIA Section 310(a)(1), (2) and (5). The Trustee shall always have a
combined capital and surplus of at least $25,000,000 as set forth in its most recent published
annual report of condition. The Trustee shall comply with TIA Section 310(b).
26
Section 7.11. Preferential Collection of Claims Against Company
. The Trustee is subject to
TIA Section 311(a), excluding any creditor relationship listed in TIA Section 311(b). A Trustee
who has resigned or been removed shall be subject to TIA Section 311(a) to the extent indicated.
ARTICLE VIII
SATISFACTION AND DISCHARGE; DEFEASANCE
Section 8.1. Satisfaction and Discharge of Indenture
. This Indenture shall upon Company Order
cease to be of further effect (except as hereinafter provided in this Section 8.1), and the
Trustee, at the expense of the Company, shall execute proper instruments acknowledging satisfaction
and discharge of this Indenture, when
(a) either
(i) all Securities theretofore authenticated and delivered (other than Securities that have
been destroyed, lost or stolen and that have been replaced or paid) have been delivered to the
Trustee for cancellation; or
(ii) all such Securities not theretofore delivered to the Trustee for cancellation
(1) have become due and payable, or
(2) will become due and payable at their Stated Maturity within one year, or
(3) are to be called for redemption within one year under arrangements satisfactory to the
Trustee for the giving of notice of redemption by the Trustee in the name, and at the expense, of
the Company, or
(4) are deemed paid and discharged pursuant to Section 8.3, as applicable;
and the Company, in the case of (1), (2) or (3) above, has irrevocably deposited or caused to be
deposited with the Trustee as trust funds in trust an amount sufficient for the purpose of paying
and discharging the entire indebtedness on such Securities not theretofore delivered to the Trustee
for cancellation, for principal and interest to the date of such deposit (in the case of Securities
which have become due and payable on or prior to the date of such deposit) or to the Stated
Maturity or redemption date, as the case may be;
(b) the Company has paid or caused to be paid all other sums payable hereunder by the Company;
and
(c) the Company has delivered to the Trustee an Officers Certificate and an Opinion of
Counsel, each stating that all conditions precedent herein provided for relating to the
satisfaction and discharge of this Indenture have been complied with.
27
Notwithstanding the satisfaction and discharge of this Indenture, the obligations of the
Company to the Trustee under Section 7.7, and, if money shall have been deposited with the Trustee
pursuant to clause (a) of this Section, the provisions of Sections 2.4, 2.7, 2.8, 8.1 8.2 and 8.5
shall survive.
Section 8.2. Application of Trust Funds; Indemnification
.
(a) Subject to the provisions of Section 8.5, all money deposited with the Trustee pursuant to
Section 8.1, all money and U.S. Government Obligations or Foreign Government Obligations deposited
with the Trustee pursuant to Section 8.3 or 8.4 and all money received by the Trustee in respect of
U.S. Government Obligations or Foreign Government Obligations deposited with the Trustee pursuant
to Section 8.3 or 8.4, shall be held in trust and applied by it, in accordance with the provisions
of the Securities and this Indenture, to the payment, either directly or through any Paying Agent
(including the Company acting as its own Paying Agent) as the Trustee may determine, to the persons
entitled thereto, of the principal and interest for whose payment such money has been deposited
with or received by the Trustee or to make mandatory sinking fund payments or analogous payments as
contemplated by Sections 8.3 or 8.4.
(b) The Company shall pay and shall indemnify the Trustee against any tax, fee or other charge
imposed on or assessed against U.S. Government Obligations or Foreign Government Obligations
deposited pursuant to Sections 8.3 or 8.4 or the interest and principal received in respect of such
obligations other than any payable by or on behalf of Holders.
(c) The Trustee shall deliver or pay to the Company from time to time upon Company Request any
U.S. Government Obligations or Foreign Government Obligations or money held by it as provided in
Sections 8.3 or 8.4 which, in the opinion of a nationally recognized firm of independent certified
public accountants expressed in a written certification thereof delivered to the Trustee, are then
in excess of the amount thereof which then would have been required to be deposited for the purpose
for which such U.S. Government Obligations or Foreign Government Obligations or money were
deposited or received. This provision shall not authorize the sale by the Trustee of any U.S.
Government Obligations or Foreign Government Obligations held under this Indenture.
Section 8.3. Legal Defeasance of Securities of Any Series
. Unless this Section 8.3 is
otherwise specified, pursuant to Section 2.2.20, to be inapplicable to Securities of any Series,
the Company shall be deemed to have paid and discharged the entire indebtedness on all the
outstanding Securities of such Series on the 91st day after the date of the deposit referred to in
subparagraph (d) hereof, and the provisions of this Indenture, as it relates to such outstanding
Securities of such Series, shall no longer be in effect (and the Trustee, at the expense of the
Company, shall, at Company Request, execute proper instruments acknowledging the same), except as
to:
(a) the rights of Holders of Securities of such Series to receive, from the trust funds
described in subparagraph (d) hereof, (i) payment of the principal of and each installment of
principal of and interest on the outstanding Securities of such Series on the Stated Maturity of
such principal or installment of principal or interest and (ii) the benefit of any mandatory
sinking fund payments applicable to the Securities of such Series on the day on which such payments
are due and payable in accordance with the terms of this Indenture and the Securities of such
Series;
(b) the provisions of Sections 2.4, 2.7, 2.8, 8.2, 8.3 and 8.5; and
28
(c) the rights, powers, trust and immunities of the Trustee hereunder;
provided that, the following conditions shall have been satisfied:
(d) the Company shall have deposited or caused to be deposited irrevocably with the Trustee as
trust funds in trust for the purpose of making the following payments, specifically pledged as
security for and dedicated solely to the benefit of the Holders of such Securities (i) in the case
of Securities of such Series denominated in Dollars, cash in Dollars (or such other money or
currencies as shall then be legal tender in the United States) and/or U.S. Government Obligations,
or (ii) in the case of Securities of such Series denominated in a Foreign Currency (other than a
composite currency), money and/or Foreign Government Obligations, which through the payment of
interest and principal in respect thereof, in accordance with their terms, will provide (and
without reinvestment and assuming no tax liability will be imposed on such Trustee), not later than
one day before the due date of any payment of money, an amount in cash, sufficient, in the opinion
of a nationally recognized firm of independent public accountants expressed in a written
certification thereof delivered to the Trustee, to pay and discharge each installment of principal
(including mandatory sinking fund or analogous payments) of and interest, if any, on all the
Securities of such Series on the dates such installments of interest or principal are due;
(e) such deposit will not result in a breach or violation of, or constitute a default under,
this Indenture or any other agreement or instrument to which the Company is a party or by which it
is bound;
(f) no Default or Event of Default with respect to the Securities of such Series shall have
occurred and be continuing on the date of such deposit or during the period ending on the 91st day
after such date;
(g) the Company shall have delivered to the Trustee an Officers Certificate and an Opinion of
Counsel to the effect that (i) the Company has received from, or there has been published by, the
Internal Revenue Service a ruling, or (ii) since the date of execution of this Indenture, there has
been a change in the applicable Federal income tax law, in either case to the effect that, and
based thereon such Opinion of Counsel shall confirm that, the Holders of the Securities of such
Series will not recognize income, gain or loss for Federal income tax purposes as a result of such
deposit, defeasance and discharge and will be subject to Federal income tax on the same amount and
in the same manner and at the same times as would have been the case if such deposit, defeasance
and discharge had not occurred;
(h) the Company shall have delivered to the Trustee an Officers Certificate stating that the
deposit was not made by the Company with the intent of preferring the Holders of the Securities of
such Series over any other creditors of the company or with the intent of defeating, hindering,
delaying or defrauding any other creditors of the Company;
(i) such deposit shall not result in the trust arising from such deposit constituting an
investment company (as defined in the Investment Company Act of 1940, as amended), or such trust
shall be qualified under such Act or exempt from regulation thereunder; and
(j) the Company shall have delivered to the Trustee an Officers Certificate and an Opinion of
Counsel, each stating that all conditions precedent provided for relating to the defeasance
contemplated by this Section have been complied with.
29
Section 8.4. Covenant Defeasance
. Unless this Section 8.4 is otherwise specified pursuant to
Section 2.2.20 to be inapplicable to Securities of any Series, on and after the 91st day after the
date of the deposit referred to in subparagraph (a) hereof, the Company may omit to comply with any
term, provision or condition set forth under Sections 4.2, 4.3, 4.4, 4.5, 4.6, and 5.1 as well as
any additional covenants contained in a supplemental indenture hereto for a particular Series of
Securities or a Board Resolution or an Officers Certificate delivered pursuant to Section 2.2.20
(and the failure to comply with any such covenants shall not constitute a Default or Event of
Default under Section 6.1) with respect to the Securities of such Series, provided that the
following conditions shall have been satisfied:
(a) With reference to this Section 8.4, the Company has deposited or caused to be irrevocably
deposited (except as provided in Section 8.2(c)) with the Trustee as trust funds in trust,
specifically pledged as security for, and dedicated solely to, the benefit of the Holders of such
Securities (i) in the case of Securities of such Series denominated in Dollars, cash in Dollars (or
such other money or currencies as shall then be legal tender in the United States) and/or U.S.
Government Obligations, or (ii) in the case of Securities of such Series denominated in a Foreign
Currency (other than a composite currency), money and/or Foreign Government Obligations, which
through the payment of interest and principal in respect thereof, in accordance with their terms,
will provide (and without reinvestment and assuming no tax liability will be imposed on such
Trustee), not later than one day before the due date of any payment of money, an amount in cash,
sufficient, in the opinion of a nationally recognized firm of independent certified public
accountants expressed in a written certification thereof delivered to the Trustee, to pay principal
and interest, if any, on and any mandatory sinking fund in respect of the Securities of such Series
on the dates such installments of interest or principal are due;
(b) Such deposit will not result in a breach or violation of, or constitute a default under,
this Indenture or any other agreement or instrument to which the Company is a party or by which it
is bound;
(c) No Default or Event of Default with respect to the Securities of such Series shall have
occurred and be continuing on the date of such deposit or during the period ending on the 91st day
after such date;
(d) the Company shall have delivered to the Trustee an Opinion of Counsel confirming that
Holders of the Securities of such Series will not recognize income, gain or loss for federal income
tax purposes as a result of such deposit and defeasance and will be subject to federal income tax
on the same amounts, in the same manner and at the same times as would have been the case if such
deposit and defeasance had not occurred;
(e) the Company shall have delivered to the Trustee an Officers Certificate stating the
deposit was not made by the Company with the intent of preferring the Holders of the Securities of
such Series over any other creditors of the Company or with the intent of defeating, hindering,
delaying or defrauding any other creditors of the Company; and
(f) The Company shall have delivered to the Trustee an Officers Certificate and an Opinion of
Counsel, each stating that all conditions precedent herein provided for relating to the defeasance
contemplated by this Section have been complied with.
30
Section 8.5. Repayment to Company
. The Trustee and the Paying Agent shall pay to the Company
upon request any money held by them for the payment of principal and interest that remains
unclaimed for two years. After that, Securityholders entitled to the money must look to the
Company for payment as general creditors unless an applicable abandoned property law designates
another person.
ARTICLE IX
AMENDMENTS AND WAIVERS
Section 9.1. Without Consent of Holders
. The Company and the Trustee may amend or supplement
this Indenture or the Securities of one or more Series without the consent of any Securityholder:
(a) to cure any ambiguity, defect or inconsistency;
(b) to comply with Article V;
(c) to provide for uncertificated Securities in addition to or in place of certificated
Securities;
(d) to make any change that does not adversely affect the rights of any Securityholder;
(e) to provide for the issuance of and establish the form and terms and conditions of
Securities of any Series as permitted by this Indenture;
(f) to evidence and provide for the acceptance of appointment hereunder by a successor Trustee
with respect to the Securities of one or more Series and to add to or change any of the provisions
of this Indenture as shall be necessary to provide for or facilitate the administration of the
trusts hereunder by more than one Trustee; or
(g) to comply with requirements of the SEC in order to effect or maintain the qualification of
this Indenture under the TIA.
Section 9.2. With Consent of Holders
. The Company and the Trustee may enter into a
supplemental indenture with the written consent of the Holders of at least a majority in principal
amount of the outstanding Securities of each Series affected by such supplemental indenture
(including consents obtained in connection with a tender offer or exchange offer for the Securities
of such Series), for the purpose of adding any provisions to or changing in any manner or
eliminating any of the provisions of this Indenture or of any supplemental indenture or of
modifying in any manner the rights of the Securityholders of each such Series. Except as provided
in Section 6.13, the Holders of at least a majority in principal amount of the outstanding
Securities of each Series affected by such waiver by notice to the Trustee (including consents
obtained in connection with a tender offer or exchange offer for the Securities of such Series) may
waive compliance by the Company with any provision of this Indenture or the Securities with respect
to such Series.
It shall not be necessary for the consent of the Holders of Securities under this Section 9.2
to approve the particular form of any proposed supplemental indenture or waiver, but it shall be
sufficient if such consent approves the substance thereof. After a supplemental indenture or
waiver
31
under this section becomes effective, the Company shall mail to the Holders of Securities
affected thereby and, if any Bearer Securities affected thereby are outstanding, publish on one
occasion in an Authorized Newspaper, a notice briefly describing the supplemental indenture or
waiver. Any failure by the Company to mail or publish such notice, or any defect therein, shall
not, however, in any way impair or affect the validity of any such supplemental indenture or
waiver.
Section 9.3. Limitations
. Without the consent of each Securityholder affected, an amendment
or waiver may not:
(a) change the amount of Securities whose Holders must consent to an amendment, supplement or
waiver;
(b) reduce the rate of or extend the time for payment of interest (including default interest)
on any Security;
(c) reduce the principal or premium on or change the Stated Maturity of any Security or reduce
the amount of, or postpone the date fixed for, the payment of any sinking fund or analogous
obligation;
(d) reduce the principal amount of Discount Securities payable upon acceleration of the
maturity thereof;
(e) waive a Default or Event of Default in the payment of the principal of, premium on or
interest, if any, on any Security (except a rescission of acceleration of the Securities of any
Series by the Holders of at least a majority in principal amount of the outstanding Securities of
such Series and a waiver of the payment default that resulted from such acceleration);
(f) make the principal of or interest, if any, on any Security payable in any currency other
than that stated in the Security;
(g) make any change in Sections 6.8, 6.13 or 9.3 (this sentence); or
(h) waive a redemption payment with respect to any Security or change any of the provisions
with respect to the redemption of any Securities.
Section 9.4. Compliance with Trust Indenture Act
. Every amendment to this Indenture or the
Securities of one or more Series shall be set forth in a supplemental indenture hereto that
complies with the TIA as then in effect.
Section 9.5. Revocation and Effect of Consents
. Until an amendment or waiver becomes
effective, a consent to it by a Holder of a Security is a continuing consent by the Holder and
every subsequent Holder of a Security or portion of a Security that evidences the same debt as the
consenting Holders Security, even if notation of the consent is not made on any Security.
However, any such Holder or subsequent Holder may revoke the consent as to his Security or portion
of a Security if the Trustee receives the notice of revocation before the date the amendment or
waiver becomes effective.
Any amendment or waiver once effective shall bind every Securityholder of each Series affected
by such amendment or waiver unless it is of the type described in any of clauses (a) through (h) of
Section 9.3. In that case, the amendment or waiver shall bind each Holder of a Security who
32
has consented to it and every subsequent Holder of a Security or portion of a Security that
evidences the same debt as the consenting Holders Security.
Section 9.6. Notation on or Exchange of Securities
. The Trustee may place an appropriate
notation about an amendment or waiver on any Security of any Series thereafter authenticated. The
Company in exchange for Securities of that Series may issue and the Trustee shall authenticate upon
request new Securities of that Series that reflect the amendment or waiver.
Section 9.7. Trustee Protected
. In executing, or accepting the additional trusts created by,
any supplemental indenture permitted by this Article or the modifications thereby of the trusts
created by this Indenture, the Trustee shall be entitled to receive, and (subject to Section 7.1)
shall be fully protected in relying upon, an Opinion of Counsel stating that the execution of such
supplemental indenture is authorized or permitted by this Indenture. The Trustee shall sign all
supplemental indentures, except that the Trustee need not sign any supplemental indenture that
adversely affects its rights.
ARTICLE X
MISCELLANEOUS
Section 10.1. Trust Indenture Act Controls
. If any provision of this Indenture limits,
qualifies, or conflicts with another provision which is required or deemed to be included in this
Indenture by the TIA, such required or deemed provision shall control.
Section 10.2. Notices
. Unless otherwise provided herein, any notice or communication by the
Company or the Trustee to the other shall be in writing and delivered in person or by courier,
telegraphed, telexed or by facsimile transmission or mailed by first-class mail as follows:
|
|
|
|
|
|
|
if to the Company:
|
|
Endologix, Inc.
|
|
|
|
|
11 Studebaker
|
|
|
|
|
Irvine, California 92618
|
|
|
|
|
Attention: Chief Executive Officer
|
|
|
|
|
Facsimile: (949) 595-7200
|
|
|
|
|
|
|
|
with a copy to:
|
|
Stradling Yocca Carlson & Rauth
|
|
|
|
|
660 Newport Center Drive, Suite 1600
|
|
|
|
|
Newport Beach, California 92660
|
|
|
|
|
Attention: Lawrence B. Cohn, Esq.
|
|
|
|
|
Facsimile: (949) 725-4100
|
|
|
|
|
|
|
|
if to the Trustee:
|
|
[Name of Trustee]
|
|
|
|
|
[Address]
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Attention:
|
The Company or the Trustee by notice to the other may designate additional or different
addresses for subsequent notices or communications.
33
Any notice or communication to a Securityholder shall be mailed by first-class mail to his
address shown on the register kept by the Registrar and, if any Bearer Securities are outstanding,
published in an Authorized Newspaper. Failure to mail a notice or communication to a
Securityholder of any Series or any defect in it shall not affect its sufficiency with respect to
other Securityholders of that or any other Series.
If a notice or communication is mailed in the manner provided above, within the time
prescribed, it is duly given, whether or not the Securityholder receives it. If a notice or
communication is delivered in person, by courier, telegraphed, telexed or by facsimile transmission
(with confirmation of receipt) within the time prescribed, it is duly given.
If the Company mails a notice or communication to Securityholders, it shall mail a copy to the
Trustee and each Agent at the same time.
Section 10.3. Communication by Holders with other Holders
. Securityholders of any Series may
communicate pursuant to TIA Section 312(b) with other Securityholders of that Series or any other
Series with respect to their rights under this Indenture or the Securities of that Series or all
Series. The Company, the Trustee, the Registrar and anyone else shall have the protection of TIA
Section 312(c).
Section 10.4. Certificate and Opinion as to Conditions Precedent
. Upon any request or
application by the Company to the Trustee to take any action under this Indenture, the Company
shall furnish to the Trustee:
(a) an Officers Certificate stating that, in the opinion of the signers, all conditions
precedent, if any, provided for in this Indenture relating to the proposed action have been
complied with; and
(b) an Opinion of Counsel stating that, in the opinion of such counsel, all such conditions
precedent have been complied with.
Section 10.5. Statements Required in Certificate or Opinion
. Each certificate or opinion with
respect to compliance with a condition or covenant provided for in this Indenture (other than a
certificate provided pursuant to TIA Section 314(a)(4)) shall comply with the provisions of TIA
Section 314(e) and shall include:
(a) a statement that the person making such certificate or opinion has read such covenant or
condition;
(b) a brief statement as to the nature and scope of the examination or investigation upon
which the statements or opinions contained in such certificate or opinion are based;
(c) a statement that, in the opinion of such person, he has made such examination or
investigation as is necessary to enable him to express an informed opinion as to whether or not
such covenant or condition has been complied with; and
(d) a statement as to whether or not, in the opinion of such person, such condition or
covenant has been complied with.
34
Section 10.6. Rules by Trustee and Agents
. The Trustee may make reasonable rules for action
by or a meeting of Securityholders of one or more Series. Any Agent may make reasonable rules and
set reasonable requirements for its functions.
Section 10.7. Legal Holidays
. Unless otherwise provided by Board Resolution, Officers
Certificate or supplemental indenture for a particular Series, a Legal Holiday is any day that is
not a Business Day. If a payment date is a Legal Holiday at a place of payment, payment may be
made at that place on the next succeeding day that is not a Legal Holiday, and no interest shall
accrue for the intervening period.
Section 10.8. No Recourse Against Others
. A director, officer, employee or stockholder, as
such, of the Company shall not have any liability for any obligations of the Company under the
Securities or the Indenture or for any claim based on, in respect of or by reason of such
obligations or their creation. Each Securityholder by accepting a Security waives and releases all
such liability. The waiver and release are part of the consideration for the issue of the
Securities.
Section 10.9. Counterparts
. This Indenture may be executed in any number of counterparts and
by the parties hereto in separate counterparts, each of which when so executed shall be deemed to
be an original and all of which taken together shall constitute one and the same agreement.
Section 10.10. Governing Laws
. THIS INDENTURE AND THE SECURITIES SHALL BE GOVERNED BY THE
LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED IN SUCH STATE,
WITHOUT REGARD TO THE CONFLICT OF LAWS PROVISIONS THEREOF.
Section 10.11. No Adverse Interpretation of Other Agreements
. This Indenture may not be used
to interpret another indenture, loan or debt agreement of the Company or a Subsidiary. Any such
indenture, loan or debt agreement may not be used to interpret this Indenture.
Section 10.12. Successors
. All agreements of the Company in this Indenture and the Securities
shall bind its successor. All agreements of the Trustee in this Indenture shall bind its
successor.
Section 10.13. Severability
. In case any provision in this Indenture or in the Securities
shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the
remaining provisions shall not in any way be affected or impaired thereby.
Section 10.14. Table of Contents, Headings, Etc
. The Table of Contents, Cross Reference
Table, and headings of the Articles and Sections of this Indenture have been inserted for
convenience of reference only, are not to be considered a part hereof, and shall in no way modify
or restrict any of the terms or provisions hereof.
Section 10.15. Securities in a Foreign Currency or in ECU
. Unless otherwise specified in a
Board Resolution, a supplemental indenture hereto or an Officers Certificate delivered pursuant to
Section 2.2 of this Indenture with respect to a particular Series of Securities, whenever for
purposes of this Indenture any action may be taken by the Holders of a specified percentage in
aggregate principal amount of Securities of all Series or all Series affected by a particular
action at the time outstanding and, at such time, there are outstanding Securities of any Series
which are denominated
35
in a coin or currency other than Dollars (including ECUs), then the principal amount of
Securities of such Series which shall be deemed to be outstanding for the purpose of taking such
action shall be that amount of Dollars that could be obtained for such amount at the Market
Exchange Rate at such time. For purposes of this Section 10.15, Market Exchange Rate shall mean
the noon Dollar buying rate in New York City for cable transfers of that currency as published by
the Federal Reserve Bank of New York; provided, however, in the case of ECUs, Market Exchange Rate
shall mean the rate of exchange determined by the Commission of the European Union (or any
successor thereto) as published in the Official Journal of the European Union (such publication or
any successor publication, the Journal). If such Market Exchange Rate is not available for any
reason with respect to such currency, the Trustee shall use, in its sole discretion and without
liability on its part, such quotation of the Federal Reserve Bank of New York or, in the case of
ECUs, the rate of exchange as published in the Journal, as of the most recent available date, or
quotations or, in the case of ECUs, rates of exchange from one or more major banks in The City of
New York or in the country of issue of the currency in question or, in the case of ECUs, in
Luxembourg or such other quotations or, in the case of ECUs, rates of exchange as the Trustee, upon
consultation with the Company, shall deem appropriate. The provisions of this paragraph shall
apply in determining the equivalent principal amount in respect of Securities of a Series
denominated in currency other than Dollars in connection with any action taken by Holders of
Securities pursuant to the terms of this Indenture.
All decisions and determinations of the Trustee regarding the Market Exchange Rate or any
alternative determination provided for in the preceding paragraph shall be in its sole discretion
and shall, in the absence of manifest error, be conclusive to the extent permitted by law for all
purposes and irrevocably binding upon the Company and all Holders.
Section 10.16. Judgment Currency
. The Company agrees, to the fullest extent that it may
effectively do so under applicable law, that (a) if for the purpose of obtaining judgment in any
court it is necessary to convert the sum due in respect of the principal of or interest or other
amount on the Securities of any Series (the Required Currency) into a currency in which a
judgment will be rendered (the Judgment Currency), the rate of exchange used shall be the rate at
which in accordance with normal banking procedures the Trustee could purchase in The City of New
York the Required Currency with the Judgment Currency on the day on which final unappealable
judgment is entered, unless such day is not a New York Banking Day, then, the rate of exchange used
shall be the rate at which in accordance with normal banking procedures the Trustee could purchase
in The City of New York the Required Currency with the Judgment Currency on the New York Banking
Day preceding the day on which final unappealable judgment is entered and (b) its obligations under
this Indenture to make payments in the Required Currency (i) shall not be discharged or satisfied
by any tender, any recovery pursuant to any judgment (whether or not entered in accordance with
subsection (a)), in any currency other than the Required Currency, except to the extent that such
tender or recovery shall result in the actual receipt, by the payee, of the full amount of the
Required Currency expressed to be payable in respect of such payments, (ii) shall be enforceable as
an alternative or additional cause of action for the purpose of recovering in the Required Currency
the amount, if any, by which such actual receipt shall fall short of the full amount of the
Required Currency so expressed to be payable, and (iii) shall not be affected by judgment being
obtained for any other sum due under this Indenture. For purposes of the foregoing, New York
Banking Day means any day except a Saturday, Sunday or a legal holiday in The City of New York on
which banking institutions are authorized or required by law, regulation or executive order to
close.
36
ARTICLE XI
SINKING FUNDS
Section 11.1. Applicability of Article
. The provisions of this Article shall be applicable to
any sinking fund for the retirement of the Securities of a Series, except as otherwise permitted or
required by any form of Security of such Series issued pursuant to this Indenture.
The minimum amount of any sinking fund payment provided for by the terms of the Securities of
any Series is herein referred to as a mandatory sinking fund payment and any other amount
provided for by the terms of Securities of such Series is herein referred to as an optional
sinking fund payment. If provided for by the terms of Securities of any Series, the cash amount of
any sinking fund payment may be subject to reduction as provided in Section 11.2. Each sinking
fund payment shall be applied to the redemption of Securities of any Series as provided for by the
terms of the Securities of such Series.
Section 11.2. Satisfaction of Sinking Fund Payments with Securities
. The Company may, in
satisfaction of all or any part of any sinking fund payment with respect to the Securities of any
Series to be made pursuant to the terms of such Securities (1) deliver outstanding Securities of
such Series to which such sinking fund payment is applicable (other than any of such Securities
previously called for mandatory sinking fund redemption) and (2) apply as credit Securities of such
Series to which such sinking fund payment is applicable and which have been redeemed either at the
election of the Company pursuant to the terms of such Series of Securities (except pursuant to any
mandatory sinking fund) or through the application of permitted optional sinking fund payments or
other optional redemptions pursuant to the terms of such Securities, provided that such Securities
have not been previously so credited. Such Securities shall be received by the Trustee, together
with an Officers Certificate with respect thereto, not later than 15 days prior to the date on
which the Trustee begins the process of selecting Securities for redemption, and shall be credited
for such purpose by the Trustee at the price specified in such Securities for redemption through
operation of the sinking fund and the amount of such sinking fund payment shall be reduced
accordingly. If as a result of the delivery or credit of Securities in lieu of cash payments
pursuant to this Section 11.2, the principal amount of Securities of such Series to be redeemed in
order to exhaust the aforesaid cash payment shall be less than $100,000, the Trustee need not call
Securities of such Series for redemption, except upon receipt of a Company Order that such action
be taken, and such cash payment shall be held by the Trustee or a Paying Agent and applied to the
next succeeding sinking fund payment, provided, however, that the Trustee or such Paying Agent
shall from time to time upon receipt of a Company Order pay over and deliver to the Company any
cash payment so being held by the Trustee or such Paying Agent upon delivery by the Company to the
Trustee of Securities of that Series purchased by the Company having an unpaid principal amount
equal to the cash payment required to be released to the Company.
Section 11.3. Redemption of Securities for Sinking Fund
. Not less than 45 days (unless
otherwise indicated in the Board Resolution, supplemental indenture hereto or Officers Certificate
in respect of a particular Series of Securities) prior to each sinking fund payment date for any
Series of Securities, the Company will deliver to the Trustee an Officers Certificate specifying
the amount of the next ensuing mandatory sinking fund payment for that Series pursuant to the terms
of that Series, the portion thereof, if any, which is to be satisfied by payment of cash and the
portion thereof, if any, which is to be satisfied by delivering and crediting of Securities of that
Series pursuant to Section 11.2, and the optional amount, if any, to be added in cash to the next
ensuing mandatory
37
sinking fund payment, and the Company shall thereupon be obligated to pay the amount therein
specified. Not less than 30 days (unless otherwise indicated in the Board Resolution, Officers
Certificate or supplemental indenture in respect of a particular Series of Securities) before each
such sinking fund payment date the Trustee shall select the Securities to be redeemed upon such
sinking fund payment date in the manner specified in Section 3.2 and cause notice of the redemption
thereof to be given in the name of and at the expense of the Company in the manner provided in
Section 3.3. Such notice having been duly given, the redemption of such Securities shall be made
upon the terms and in the manner stated in Sections 3.4, 3.5 and 3.6.
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK.]
38
IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly executed as of
the day and year first above written.
|
|
|
|
|
|
|
|
|
ENDOLOGIX, INC.
|
|
|
|
|
|
|
|
|
|
|
|
By:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Name:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Its:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
[NAME OF TRUSTEE]
|
|
|
|
|
|
|
|
|
|
|
|
By:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Name:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Its:
|
|
|
|
|
|
|
|
|
|
|
|
39