As
filed with the Securities and Exchange Commission on May 15, 2024
Registration
No. 333-
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
D.C. 20549
FORM
S-3
REGISTRATION
STATEMENT
UNDER
THE
SECURITIES ACT OF 1933
IMUNON,
INC.
(Exact
name of registrant as specified in its charter)
| delaware |
|
52-1256615 |
(State
or other jurisdiction
of
incorporation or organization) |
|
(I.R.S.
Employer
Identification
No.) |
997
Lenox Drive, Suite 100
Lawrenceville,
New Jersey 08648
(609)
896-9100
(Address,
including zip code, and telephone number, including area code, of Registrant’s principal executive offices)
Michael
H. Tardugno
Executive
Chairman of the Board
997
Lenox Drive, Suite 100
Lawrenceville,
New Jersey 08648
(609)
896-9100
(Name,
address, including zip code, and telephone number, including area code, of agent for service)
Copies
to:
Megan
Gates, Esq.
Michael
Riella, Esq.
Covington
& Burling LLP
One
International Place, Suite 1020
Boston,
Massachusetts 02110
(617)
603-8800
Approximate
date of commencement of proposed sale to the public:
From
time to time or at one time as determined by the registrant 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. ☐
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. ☒
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. ☐
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. ☐
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. ☐
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. ☐
Indicate
by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting
company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,”
“smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
| Large
accelerated filer ☐ |
|
Accelerated
filer ☐ |
| |
|
|
| Non-accelerated
filer ☒ |
|
Smaller
reporting company ☒ |
| |
|
|
| |
|
Emerging
growth company ☐ |
If
an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying
with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of Securities Act. ☐
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, as amended, or until the registration statement shall become effective
on such date as the Securities and Exchange Commission, acting pursuant to said Section 8(a), may determine.
EXPLANATORY
NOTE
This
registration statement contains:
| ● | a
base prospectus which covers the offering, issuance and sale by us of up to $75,000,000 in
the aggregate of common stock, preferred stock, debt securities, warrants, rights and/or
units from time to time in one or more offerings; and |
| ● | an
“at the market offering” sales agreement prospectus covering the offering, issuance
and sale by us of up to a maximum aggregate offering price of $5,500,000 of our common stock
that may be issued and sold from time to time under an At the Market Offering Agreement,
as amended by Amendment No. 1 to At the Market Offering Agreement, which, as amended, we
refer to as the ATM Agreement, with H.C. Wainwright & Co., LLC, or Wainwright. |
The
base prospectus immediately follows this explanatory note. The specific terms of any securities to be offered pursuant to the base prospectus
will be specified in a prospectus supplement to the base prospectus. The sales agreement prospectus immediately follows the base prospectus.
The $5,500,000 of common stock that may be offered, issued and sold under the sales agreement prospectus is included in the $75,000,000
of securities that may be offered, issued and sold by us under the base prospectus.
Upon
termination of the ATM Agreement with Wainwright, any portion of the $5,500,000 covered by the ATM Agreement prospectus that is not sold
pursuant to the ATM Agreement will be available for sale in one or more other offerings pursuant to the base prospectus and an accompanying
prospectus supplement, and if no shares are sold under the ATM Agreement, the full $75,000,000 of securities may be sold in one or more
other offerings pursuant to the base prospectus and an accompanying prospectus supplement.
THE
INFORMATION IN THIS PROSPECTUS IS NOT COMPLETE AND MAY BE CHANGED. WE MAY NOT SELL THESE SECURITIES UNTIL THE REGISTRATION STATEMENT
FILED WITH THE SECURITIES AND EXCHANGE COMMISSION IS 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 15, 2024
PROSPECTUS
Imunon,
Inc.
$75,000,000
COMMON
STOCK
PREFERRED
STOCK
DEBT
SECURITIES
WARRANTS
RIGHTS
UNITS
We
may from time to time offer to sell any combination of the securities described in this prospectus, either individually or in units,
in one or more offerings. The aggregate initial offering price of all securities sold under this prospectus may not exceed $75,000,000.
This
prospectus provides you with a general description of the securities we may offer. Each time we offer securities using this prospectus,
we will provide the specific terms of the securities and the offering in one or more supplements to this prospectus. We may also authorize
one or more free writing prospectuses to be provided to you in connection with these offerings. The prospectus supplement and any related
free writing prospectus may also add to, update or change the information contained in this prospectus. You should carefully read this
prospectus, the applicable prospectus supplement and any related free writing prospectus, as well as any documents incorporated by reference
herein or therein before you invest in any securities. This prospectus may not be used to consummate a sale of securities unless accompanied
by the applicable prospectus supplement.
We
may sell these securities directly to investors, through agents designated from time to time or to or through underwriters or dealers,
on a continuous or delayed basis. For additional information on the methods of sale, you should refer to the section titled “Plan
of Distribution” in this prospectus. If any underwriters are involved in the sale of any securities with respect to which this
prospectus is being delivered, the names of such underwriters and any applicable commissions or discounts 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.
Our
common stock is listed on The Nasdaq Capital Market, or Nasdaq, under the symbol “IMNN.” On May 14, 2024, the last reported
sale price of our common stock was $1.35 per share. The applicable prospectus supplement will contain information, where applicable,
as to any other listing, if any, on Nasdaq or any securities market or other securities exchange of the securities covered by the prospectus
supplement.
The
aggregate market value of our voting and non-voting common stock held by non-affiliates pursuant to General Instruction I.B.6. of Form
S-3 is $18,075,494, which was calculated based on 9,365,541 outstanding shares of our voting and non-voting common stock held
by non-affiliates as of May 10, 2024, and at a price of $1.93 per share, the closing sale price of our common stock reported on The Nasdaq
Capital Market on April 1, 2024, a date within 60 days prior to the date of this prospectus. Pursuant to General Instruction I.B.6 of
Form S-3, in no event will we sell our securities in a public primary offering with a value exceeding more than one-third of our public
float in any 12-month period so long as our public float remains below $75,000,000. During the 12 calendar months prior to, and including,
the date of this prospectus, we have sold 243,534 shares of common stock for gross proceeds of $334,659 pursuant to General Instruction
I.B.6 of Form S-3. Prospective purchasers of our securities are urged to obtain current information as to the market prices of our securities,
where applicable.
Investing
in our securities involves a high degree of risk. Before making an investment decision, please read “Risk Factors” on page
3 of this prospectus, in any accompanying prospectus supplement and in any related free writing prospectus, and under similar headings
in the documents incorporated by reference into this prospectus, any accompanying prospectus supplement and any related free writing
prospectus.
Neither
the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined
if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.
The
date of this prospectus is , 2024.
TABLE
OF CONTENTS
ABOUT
THIS PROSPECTUS
This
prospectus is part of a registration statement on Form S-3 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, offer shares of our common
stock, shares of our preferred stock, debt securities, warrants, rights or units comprised of two or more of the foregoing securities
in one or more offerings, for a total maximum offering price not to exceed $75,000,000.
This
prospectus provides you with a general description of the securities we may offer. Each time we sell any securities under this prospectus,
we will provide a prospectus supplement that will contain more specific information about the terms of that specific offering, including
the specific amounts, prices and terms of the securities offered. Any prospectus supplement may include a discussion of risks or other
special considerations applicable to us or the offered securities. Any prospectus supplement may also add to, update or change information
contained in this prospectus. To the extent there is a conflict between the information contained in this prospectus, on the one hand,
and the information contained in any prospectus supplement, on the other hand, you should rely on the information in the prospectus supplement.
If any statement in one of these documents is inconsistent with a statement in another document having a later date-for example, a document
incorporated by reference in the accompanying prospectus-the statement in the document having the later date modifies or supersedes the
earlier statement.
You
should read this prospectus, any applicable prospectus supplement and any related free writing prospectus, any documents that we incorporate
by reference in this prospectus, and the additional information described below under “Where You Can Find More Information”
and “Incorporation of Documents By Reference” 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 prospectus.
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 is 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 not assume that the information in this prospectus, any applicable prospectus supplement and any related free writing prospectus
or any documents we incorporate by reference herein or therein is accurate as of any date other than the date on the front of those documents.
Our business, financial condition, results of operations and prospects may have changed since those dates.
Unless
the context otherwise requires, “Imunon,” “IMNN,” “the Company,” “we,” “us,”
“our” and similar terms refer to Imunon, Inc. and our subsidiary, CLSN Laboratories, Inc., also a Delaware corporation. All
brand names or trademarks appearing in this prospectus are the property of their respective holders. Use or display by us of other parties’
trademarks, trade dress, or products in this prospectus is not intended to, and does not, imply a relationship with, or endorsements
or sponsorship of, us by the trademark or trade dress owners.
PROSPECTUS
SUMMARY
The
following is a summary of what we believe to be the most important aspects of our business and the offering of our securities under this
prospectus. We urge you to read this entire prospectus, including the more detailed consolidated financial statements, notes to the consolidated
financial statements and other information incorporated by reference from our other filings with the SEC or included in any applicable
prospectus supplement. Investing in our securities involves risks. Therefore, carefully consider the risk factors set forth in any prospectus
supplements and in our most recent annual and quarterly filings with the SEC, as well as other information in this prospectus and any
prospectus supplements and the documents incorporated by reference herein or therein, before purchasing our securities. Each of the risk
factors could adversely affect our business, operating results and financial condition, as well as adversely affect the value of an investment
in our securities.
About
Imunon, Inc.
Imunon
is a clinical-stage biotechnology company focused on advancing a portfolio of innovative treatments that harness the body’s natural
mechanisms with the aim to generate safe, effective and durable responses across a broad array of human diseases, constituting a differentiating
approach from conventional therapies. IMUNON is developing its non-viral DNA technology across its modalities. The first modality, TheraPlas®,
is developed for the coding of proteins and cytokines in the treatment of solid tumors where an immunological approach is deemed promising.
The second modality, PlaCCine®, is developed for the coding of viral antigens that can elicit a strong immunological response.
This technology may represent a promising platform for the development of vaccines in infectious diseases.
The
Company’s lead clinical program, IMNN-001, is a DNA-based immunotherapy for the localized treatment of advanced ovarian cancer
currently in Phase II development. IMNN-001 works by instructing the body to produce durable levels, within certain safety parameters,
of powerful cancer-fighting molecules, such as interleukin-12 and interferon gamma, at the tumor site. Additionally, the Company is entering
a first-in-human study of its COVID-19 booster vaccine (IMNN-101). We will continue to leverage these modalities and to advance the technological
frontier of plasmid DNA to better serve patients with difficult-to-treat conditions.
Additional
Information
For
additional information related to our business and operations, please refer to the reports incorporated herein by reference, as described
under the caption “Incorporation of Documents by Reference” on page 22 of this prospectus.
Our
Corporate Information
We
were founded in 1982 under the corporate name Celsion Corporation and are a Delaware corporation. Our principal executive offices are
located at 997 Lenox Drive, Suite 100, Lawrenceville, NJ 08648. Our telephone number is (609) 896-9100. Our website is www.imunon.com.
On September 19, 2022, Celsion Corporation announced a corporate name change to Imunon, Inc., reflecting the evolution of the Company’s
business focus and its commitment to developing cutting-edge immunotherapies and next-generation vaccines to treat cancer and infectious
diseases. The information contained on or that can be accessed through our website is not incorporated by reference into this prospectus,
and you should not consider information on our website to be part of this prospectus or in deciding to purchase our common stock.
Offerings
Under This Prospectus
Under
this prospectus, we may offer shares of our common stock and preferred stock, various series of debt securities and/or warrants or rights
to purchase any of such securities, either individually or in units, with a total value of up to $75,000,000, from time to time at prices
and on terms to be determined by market conditions at the time of the offering. This prospectus provides you with a general description
of the securities we may offer. Each time we offer a type or series of securities under this prospectus, we will provide a prospectus
supplement that will describe the specific amounts, prices and other important terms of the securities, including, to the extent applicable:
| ● | designation
or classification; |
| ● | aggregate
principal amount or aggregate offering price; |
| ● | maturity,
if applicable; |
| ● | rates
and times of payment of interest or dividends, if any; |
| ● | redemption,
conversion or sinking fund terms, if any; |
| ● | voting
or other rights, if any; and |
| ● | conversion
or exercise prices, if any. |
The
prospectus supplement also may add, update or change information contained in this prospectus or in documents we have incorporated by
reference into this prospectus. However, no prospectus supplement will fundamentally change the terms that are set forth in this prospectus
or offer a security that is not registered and described in this prospectus at the time of its effectiveness.
We
may sell the securities directly to investors or to or through agents, underwriters or dealers. We, and our agents or underwriters, reserve
the right to accept or reject all or part of any proposed purchase of securities. If we offer securities through agents or underwriters,
we will include in the applicable prospectus supplement:
| ● | the
names of those agents or underwriters; |
| ● | applicable
fees, discounts and commissions to be paid to them; |
| ● | details
regarding over-allotment options, if any; and |
This
prospectus may not be used to consummate a sale of any securities unless it is accompanied by a prospectus supplement.
RISK
FACTORS
Investing
in our securities involves significant risk. The prospectus supplement applicable to each offering of our securities will contain a discussion
of the risks applicable to an investment in Imunon. Prior to making a decision about investing in our securities, you should carefully
consider the specific factors discussed under the heading “Risk Factors” in the applicable prospectus supplement, together
with all of the other information contained or incorporated by reference in the prospectus supplement or appearing or incorporated by
reference in this prospectus. You should also consider the risks, uncertainties and assumptions discussed under the heading “Risk
Factors” included in our most recent annual report on Form 10-K, as revised or supplemented by our subsequent quarterly reports
on Form 10-Q or our current reports on Form 8-K that we have filed with the SEC, all of which are incorporated herein by reference, and
which may be amended, supplemented or superseded from time to time by other reports we file with the SEC in the future. The risks and
uncertainties we have described are not the only ones we face. Additional risks and uncertainties not presently known to us or that we
currently deem immaterial may also affect our operations. The occurrence of any of these risks might cause you to lose all or part of
your investment in the offered securities.
SPECIAL
NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain
of the statements contained or incorporated in this prospectus are forward-looking and constitute 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 may relate to such matters as anticipated financial performance,
business prospects, technological developments, product pipelines, clinical trials and research and development activities, the adequacy
of capital reserves and anticipated operating results and cash expenditures, current and potential collaborations, strategic alternatives
and other aspects of our present and future business operations and similar matters. These statements involve known and unknown risks,
uncertainties, and other factors that may cause our or our industry’s actual results, levels of activity, performance, or achievements
to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by such forward-looking
statements. Such factors include, among other things, unforeseen changes in the course of research and development activities and in
clinical trials; possible changes in cost, timing and progress of development, preclinical studies, clinical trials and regulatory submissions;
our collaborators’ ability to obtain and maintain regulatory approval of any of our drug candidates; possible changes in capital
structure, financial condition, future working capital needs and other financial items; uncertainties and assumptions regarding the potential
worsening global economic conditions and the recent disruptions to, and volatility in, financial markets in the U.S. and worldwide resulting
from the COVID-19 pandemic, the Russian invasion of Ukraine and the unrest in the Middle East on our business, operations, clinical trials,
supply chain, strategy, goals and anticipated timelines, changes in approaches to medical treatment; introduction of new products by
others; success or failure of our current or future collaboration arrangements, risks and uncertainties associated with possible acquisitions
of other technologies, assets or businesses; our ability to obtain additional funds for our operations; our ability to obtain and maintain
intellectual property protection for our technologies and drug candidates and our ability to operate our business without infringing
the intellectual property rights of others; our reliance on third parties to conduct preclinical studies or clinical trials; the rate
and degree of market acceptance of any approved drug candidates; possible actions by customers, suppliers, strategic partners, potential
strategic partners, competitors and regulatory authorities; compliance with listing standards of The Nasdaq Capital Market; and those
listed under “Risk Factors” this prospectus as well as in our most recent annual report on Form 10-K and our other filings
made from time to time with the SEC.
In
some cases, you can identify forward-looking statements by terminology such as “expect,” “anticipate,” “estimate,”
“plan,” “believe,” “could,” “intend,” “predict,” “may,” “should,”
“will,” “would” and words of similar import regarding the Company’s expectations. Forward-looking statements
are only predictions. Actual events or results may differ materially. Although we believe that our expectations are based on reasonable
assumptions within the bounds of our knowledge of our industry, business and operations, we cannot guarantee that actual results will
not differ materially from our expectations. In evaluating such forward-looking statements, you should specifically consider various
factors, including the risks outlined under “Risk Factors” in our most recent annual report on Form 10-K and our other filings
made from time to time with the SEC. The discussion of risks and uncertainties set forth herein and therein is not necessarily a complete
or exhaustive list of all risks facing the Company at any particular point in time. We operate in a highly competitive, highly regulated
and rapidly changing environment and our business is in a state of evolution. Therefore, it is likely that new risks will emerge, and
that the nature and elements of existing risks will change, over time. It is not possible for management to predict all such risk factors
or changes therein, or to assess either the impact of all such risk factors on our business or the extent to which any individual risk
factor, combination of factors, or new or altered factors, may cause results to differ materially from those contained in any forward-looking
statement. Except as required by law, we assume no obligation to revise or update any forward-looking statement that may be made from
time to time by us or on our behalf for any reason, even if new information becomes available in the future.
USE
OF PROCEEDS
Unless
otherwise indicated in a prospectus supplement, we currently intend to use the net proceeds from the sale of the securities offered hereby
for general corporate purposes, which may include the further research and development, clinical trials, manufacture and commercialization
of our product candidates and of our technologies, working capital, repaying, redeeming or repurchasing debt, capital expenditures and
other general corporate purposes. We may also use a portion of the net proceeds to acquire or invest in businesses, products and technologies
that are complementary to our own, as well as for capital expenditures. We have not specifically allocated the proceeds to those purposes
as of the date of this prospectus. The precise amount and timing of the application of proceeds from the sale of securities will depend
on our funding requirements and the availability and cost of other funds at the time of sale. Allocation of proceeds of a particular
series of securities, or the principal reason for the offering if no allocation has been made, will be described in the applicable prospectus
supplement or in any related free writing prospectus.
DIVIDEND
POLICY
We
have never declared or paid any cash dividends on our common stock and do not currently anticipate declaring or paying cash dividends
on our common stock in the foreseeable future. We currently intend to retain all of our future earnings, if any, to finance operations.
Any future determination relating to our dividend policy will be made at the discretion of our board of directors, or our board, and
will depend on a number of factors, including future earnings, capital requirements, financial conditions, future prospects, contractual
restrictions and other factors that our board may deem relevant.
DESCRIPTION
OF COMMON STOCK
We
are authorized to issue 112,500,000 shares of common stock, par value $0.01 per share. As of May 10, 2024, we had 9,400,889 shares of
common stock outstanding and approximately 28,000 stockholders of record.
The
following summary of certain provisions of our common stock does not purport to be complete. You should refer to the section of this
prospectus titled “Certain Provisions of Delaware Law and of the Company’s Certificate of Incorporation and Bylaws”
and our amended and restated certificate of incorporation, or the certificate of incorporation, and our restated bylaws, both of which
are included as exhibits to the registration statement of which this prospectus is a part. The summary below is also qualified by provisions
of applicable law.
General
Holders
of our common stock are entitled to one vote for each share held of record on all matters submitted to a vote of stockholders and do
not have cumulative voting rights. Subject to any preferential rights of any outstanding preferred stock, holders of common stock are
entitled to receive ratably such dividends, if any, as may be declared from time to time by our Board of Directors, or Board, out of
funds legally available therefor. In the event of a dissolution, liquidation or winding-up of the Company, holders of common stock are
entitled to share ratably in all assets remaining after payment of liabilities and any preferential rights of any outstanding preferred
stock.
Holders
of common stock have no preemptive or conversion rights or other subscription rights. There are no redemption or sinking fund provisions
applicable to the common stock. All outstanding shares of common stock are fully paid and non-assessable. The rights, preferences and
privileges of the holders of common stock are subject to, and may be adversely affected by, the rights of the holders of shares of any
series of preferred stock which may be designated and issued in the future.
Transfer
Agent and Registrar
The
transfer agent and registrar for our common stock is Equiniti Trust Company, LLC. Equiniti Trust Company, LLC is located at 6201 15th
Avenue, Brooklyn, NY 11219. Their telephone number is (888) 999-0032.
Stock
Exchange Listing
Our
common stock is listed for quotation on The Nasdaq Global Capital under the symbol “IMNN.”
DESCRIPTION
OF PREFERRED STOCK
The
following description of preferred stock and the description of the terms of any particular series of preferred stock that we choose
to issue hereunder are not complete. These descriptions are qualified in their entirety by reference to our amended and restated certificate
of incorporation and the certificate of designation relating to any series of preferred stock issued by us. The rights, preferences,
privileges and restrictions of the preferred stock of each series will be fixed by the certificate of designation relating to that series.
We
currently have no shares of preferred stock outstanding. Our Board has the authority, without further action by the stockholders, to
issue up to 100,000 shares of preferred stock in one or more series and to fix the rights, preferences, privileges and restrictions granted
to or imposed upon the preferred stock. Any or all of these rights may be greater than the rights of our common stock.
Our
Board, without stockholder approval (unless such stockholder action is required by applicable law or Nasdaq rules), can designate and
issue shares of preferred stock in one or more series, to establish from time to time the number of shares to be included in each such
series, to fix the designations, powers (including voting), privileges, preferences and relative participating, optional or other rights,
if any, of the shares of each such series, the qualifications, limitations or restrictions thereof, and to increase or decrease the number
of shares of any such series, but not below the number of shares of such series then outstanding. Additionally, the issuance of preferred
stock may have the effect of decreasing the market price of our common stock.
Our
Board may specify the following characteristics of any preferred stock:
| ● | the
maximum number of shares; |
| ● | the
designation of the shares; |
| ● | the
annual dividend rate, if any, whether the dividend rate is fixed or variable, the date or
dates on which dividends will accrue, the dividend payment dates, and whether dividends will
be cumulative; |
| ● | the
price and the terms and conditions for redemption, if any, including redemption at the option
of us or at the option of the holders, including the time period for redemption, and any
accumulated dividends or premiums; |
| ● | the
liquidation preference, if any, and any accumulated dividends upon the liquidation, dissolution
or winding up of our affairs; |
| ● | any
sinking fund or similar provision, and, if so, the terms and provisions relating to the purpose
and operation of the fund; |
| ● | the
terms and conditions, if any, for conversion or exchange of shares of any other class or
classes of our capital stock or any series of any other class or classes, or of any other
series of the same class, or any other securities or assets, including the price or the rate
of conversion or exchange and the method, if any, of adjustment; |
| ● | any
or all other preferences and relative, participating, optional or other special rights, privileges
or qualifications, limitations or restrictions; and |
| ● | any
preferred stock issued will be fully paid and nonassessable upon issuance. |
Transfer
Agent and Registrar
The
transfer agent and registrar for our preferred stock will be set forth in the applicable prospectus supplement.
DESCRIPTION
OF DEBT SECURITIES
We
may issue debt securities from time to time, in one or more series, as senior, subordinated or junior subordinated, convertible or non-convertible
and secured or unsecured debt. Any senior debt securities will rank equally with any unsubordinated debt. Subordinated debt securities
will rank equally with any other subordinated debt of the same ranking we may issue. Convertible debt securities will be convertible
into or exchangeable for our common stock or other securities at predetermined conversion rates, and conversion may be mandatory or at
the holder’s option.
Debt
securities will be issued under one or more indentures between us and a national banking association or other eligible party acting as
trustee. Following is a summary of certain general features of debt securities we may issue; we will describe the particular terms of
any debt securities that we may offer in more detail in the applicable prospectus supplement, which may differ from the terms we describe
below. You should read the prospectus supplements, any free writing prospectus we may authorize and the indentures, supplemental indentures
and forms of debt securities relating to any series of debt securities we may offer.
General
Except
as we may otherwise provide in a prospectus supplement, the relevant indenture will provide that debt securities may be issued from time
to time in one or more series. The indenture will not limit the amount of debt securities that may be issued thereunder and will provide
that the specific terms of any series of debt securities shall be set forth in, or determined pursuant to, an authorizing resolution,
an officers’ certificate or a supplemental indenture, if any, relating to such series.
We
will describe in each prospectus supplement the following terms relating to any series of debt securities:
| ● | the
title or designation; |
| ● | whether
they will be secured or unsecured, and the terms of any security; |
| ● | whether
the debt securities will be subject to subordination, and any terms thereof; |
| ● | any
limit upon the aggregate principal amount; |
| ● | the
date or dates on which the debt securities may be issued and on which we will pay the principal; |
| ● | the
interest rate, which may be fixed or variable, or the method for determining the rate, the
date interest will begin to accrue, the date or dates interest will be payable and the record
dates for interest payment dates or the method for determining them; |
| ● | 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; |
| ● | the
currency of denomination; |
| ● | if
payments of principal of, premium or interest 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
place or places where the principal of, premium, and interest will be payable, where debt
securities of any series may be presented for registration of transfer, exchange or conversion,
and where notices and demands to or upon the Company in respect of the debt securities may
be made; |
| ● | the
form of consideration in which principal of, premium or interest will be paid; |
| ● | the
terms and conditions upon which we may redeem the debt securities; |
| ● | any
obligation we have to redeem or purchase the debt securities pursuant to any sinking fund,
amortization or analogous provisions or at the option of a holder; |
| ● | the
dates on which and the price or prices at which we will repurchase the debt securities at
the option of holders and other detailed terms and provisions of these obligations; |
| ● | the
denominations in which the debt securities will be issued, if other than denominations of
$1,000 and any integral multiple thereof; |
| ● | the
portion of principal amount payable upon declaration of acceleration of the maturity date,
if other than the principal amount; |
| ● | whether
the debt securities are to be issued at any original issuance discount and the amount of
discount with which they may be issued; |
| ● | whether
the debt securities will be issued in certificated or global form and, in such case, the
depositary and the terms and conditions, if any, upon which interests in such global security
or securities may be exchanged in whole or in part for the individual securities represented
thereby; |
| ● | provisions,
if any, for defeasance in whole or in part and any addition or change to provisions related
to satisfaction and discharge; |
| ● | the
form of the debt securities; |
| ● | the
terms and conditions upon which convertible debt securities will be convertible or exchangeable
into securities or property of the Company or another person, if at all, and any additions
or changes, if any, to permit or facilitate the same; |
| ● | provisions,
if any, granting special rights to holders upon the occurrence of specified events; |
| ● | any
restriction or condition on transferability; |
| ● | any
addition or change in the provisions related to compensation and reimbursement of the trustee; |
| ● | any
addition to or change in the events of default described in this prospectus or in the indenture
and any change in the acceleration provisions so described; |
| ● | whether
the debt securities will restrict our ability to pay dividends, or will require us to maintain
any asset ratios or reserves; |
| ● | whether
we will be restricted from incurring any additional indebtedness; |
| ● | any
addition to or change in the covenants described in this prospectus or in the indenture,
including terms of any restrictive covenants; and |
| ● | any
other terms which may modify or delete any provision of the indenture. |
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 U.S. federal income
tax considerations and other special considerations applicable to any debt securities in the applicable prospectus supplement.
Conversion
or Exchange Rights
We
will set forth in the prospectus supplement the terms, if any, on which a series of debt securities may be convertible into or exchangeable
for our common stock or other securities. We will include provisions as to whether conversion or exchange is mandatory, at the option
of the holder or at our option. We may include provisions pursuant to which the number of shares of our common stock or other securities
that the holders of debt securities receive would be subject to adjustment.
Consolidation,
Merger or Sale; No Protection in Event of a Change of Control or Highly Leveraged Transaction
Except
as we may otherwise provide in a prospectus supplement, the indenture will provide that we may not merge or consolidate with or into
another entity, or sell other than for cash or lease all or substantially all our assets to another entity, or purchase all or substantially
all the assets of another entity unless we are the surviving entity or, if we are not the surviving entity, the successor, transferee
or lessee entity expressly assumes all of our obligations under the indenture or the debt securities, as appropriate.
Unless
we state otherwise in the applicable prospectus supplement, the debt securities will not contain any provisions that may afford holders
additional protection in the event we have a change of control or in the event of a highly leveraged transaction (whether or not such
transaction results in a change of control), which could adversely affect them.
Events
of Default Under the Indenture
Except
as we may otherwise provide in a prospectus supplement, the following will be events of default under the indenture with respect to any
series of debt securities that we may issue:
| ● | if
we fail to pay interest when due and our failure continues for 90 days and the time for payment
has not been extended or deferred; |
| ● | if
we fail to pay the principal, or premium, if any, when due whether by maturity or called
for redemption; |
| ● | if
we fail to pay a sinking fund installment, if any, when due and our failure continues for
30 days; |
| ● | if
we fail to observe or perform any other covenant relating to the debt securities, other than
a covenant specifically relating to and for the benefit of holders of another series of debt
securities, and our failure continues for 90 days after we receive written notice from the
trustee or holders of not less than a majority in aggregate principal amount of the outstanding
series; and |
| ● | if
specified events of bankruptcy, insolvency or reorganization occur as to the Company. |
No
event of default with respect to a particular series of debt securities (except as to certain events of bankruptcy, insolvency or reorganization)
will necessarily constitute an event of default with respect to any other series. The occurrence of an event of default may constitute
an event of default under any bank credit agreements we may have in existence from time to time. In addition, the occurrence of certain
events of default or an acceleration under the indenture may constitute an event of default under certain of our other indebtedness outstanding
from time to time.
Except
as we may otherwise provide in a prospectus supplement, if an event of default with respect to debt securities of any series at the time
outstanding occurs and is continuing, then the trustee or the holders of not less than a majority in principal amount of the outstanding
series may, by a notice in writing 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 are discount securities, that portion of the principal amount as may be specified in the terms
of such securities) of and premium and accrued and unpaid interest, if any, on all such debt securities. Before a judgment or decree
for payment of the money due has been obtained with respect to any series, the holders of a majority in principal amount of that series
(or, at a meeting of holders at which a quorum is present, the holders of a majority in principal amount represented at such meeting)
may rescind and annul the acceleration if all events of default, other than the non-payment of accelerated principal, premium, if any,
and interest, if any, have been cured or waived as provided in the applicable indenture (including payments or deposits in respect of
principal, premium or interest that had become due other than as a result of such acceleration) and the Company has deposited with the
trustee or paying agent a sum sufficient to pay all amounts owed to the trustee under the indenture, all arrears of interest, if any,
and the principal and premium, if any, on the debt securities that have become due other than by such acceleration. We refer you to the
relevant prospectus supplement relating to any discount securities for the particular provisions relating to acceleration of a portion
of the principal amount thereof upon the occurrence of an event of default.
Subject
to the terms of the indenture, and except as we may otherwise provide in a prospectus supplement, if an event of default under the indenture
shall occur and be continuing, the trustee will be under no obligation to exercise any of its rights or powers under such indenture at
the request or direction of any of the holders of the applicable series, unless such holders have offered the trustee reasonable indemnity.
The holders of a majority in principal amount of any series will 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 that series,
provided that, subject to the terms of the indenture, the trustee need not take any action that it believes, upon the advice of counsel,
might involve it in personal liability or might be unduly prejudicial to holders not involved in the proceeding.
Except
as we may otherwise provide in a prospectus supplement, a holder of the debt securities of any series will only have the right to institute
a proceeding under the indenture or to appoint a receiver or trustee, or to seek other remedies if:
| ● | the
holder previously has given written notice to the trustee of a continuing event of default
with respect to that series; |
| ● | the
holders of at least a majority in aggregate principal amount outstanding of that series have
made written request, and such holders have offered reasonable indemnity to the trustee to
institute the proceeding as trustee; and |
| ● | the
trustee does not institute the proceeding and does not receive from the holders of a majority
in aggregate principal amount outstanding of that series (or at a meeting of holders at which
a quorum is present, the holders of a majority in principal amount of such series represented
at such meeting) other conflicting directions within 60 days after the notice, request and
offer. |
Except
as we may otherwise provide in a prospectus supplement, these limitations will not apply to a suit instituted by a holder of debt securities
if we default in the payment of the principal, premium, if any, or interest on, them.
Modification
of Indenture; Waiver
Except
as we may otherwise provide in a prospectus supplement, the trustee and the Company may, without the consent of any holders, execute
a supplemental indenture to change the applicable indenture with respect to specific matters, including, among other things:
| ● | to
surrender any right or power conferred upon the Company; |
| ● | to
provide, change or eliminate any restrictions on payment of principal of or premium, if any;
provided that any such action may not adversely affect the interests of the holders of debt
securities of any series in any material respect; |
| ● | to
change or eliminate any of the provisions of the indenture; provided that any such change
or elimination may become effective only when there is no outstanding debt security created
prior to the execution of such supplemental indenture that is entitled to the benefit of
such provision and as to which such supplemental indenture would apply; |
| ● | to
evidence the succession of another entity to the Company; |
| ● | to
evidence and provide for the acceptance of appointment by a successor trustee with respect
to one or more series of debt securities and to add or change provisions of the indenture
to facilitate the administration of the trusts thereunder by more than one trustee; |
| ● | to
cure any ambiguity, mistake, manifest error, omission, defect or inconsistency in the indenture
or to conform the text of any provision in the indenture or in any supplemental indenture
to any description thereof in the applicable section of a prospectus, prospectus supplement
or other offering document that was intended to be a verbatim recitation of a provision of
the indenture or of any supplemental indenture; |
| ● | to
add to or change or eliminate any provision of the indenture as may be necessary or desirable
in accordance with any amendments to the U.S. Trust Indenture Act of 1939; |
| ● | to
make any change in any series of debt securities that does not adversely affect in any material
respect the interests of the holders thereof; and |
| ● | to
supplement any of the provisions of the indenture to such extent as may be necessary to permit
or facilitate the defeasance and discharge of any series of debt securities; provided that
any such action may not adversely affect the interests of holders of any debt securities. |
In
addition, and except as we may otherwise provide in a prospectus supplement, under the indenture the rights of holders of a series of
debt securities may be changed by us and the trustee with the written consent of the holders of at least a majority in aggregate principal
amount outstanding (or, at a meeting of holders of such series at which a quorum is present, the holders of a majority in principal amount
represented at such meeting) that is affected. The trustee and the Company may, however, make the following changes only with the consent
of each holder of any outstanding debt securities affected:
| ● | extending
the fixed maturity; |
| ● | reducing
the principal amount, reducing the rate of or extending the time of payment of interest,
or any premium payable upon redemption; |
| ● | reducing
the principal amount of discount securities payable upon acceleration of maturity; |
| ● | making
the principal of or premium or interest payable in currency other than that stated; |
| ● | impairing
the right to institute suit for the enforcement of any payment on or after the fixed maturity
date; |
| ● | materially
adversely affecting the economic terms of any right to convert or exchange; and |
| ● | reducing
the percentage of debt securities, the holders of which are required to consent to any amendment
or waiver; or modifying, without the written consent of the trustee, the rights, duties or
immunities of the trustee. |
Except
for certain specified provisions, and except as we may otherwise provide in a prospectus supplement, the holders of at least a majority
in principal amount of any series (or, at a meeting of holders of such series at which a quorum is present, the holders of a majority
in principal amount represented at such meeting) 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 all such holders, waive any past default under the indenture with respect to that series and its consequences, other than
a default in the payment of the principal of, premium or any interest; 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.
Discharge
Except
as we may otherwise provide in a prospectus supplement, the indenture will provide that we can elect to be discharged from our obligations
with respect to one or more series of debt securities. In order to exercise our rights to be discharged, we must deposit with the trustee
money or government obligations sufficient to pay all the principal of, the premium, if any, and interest on, the debt securities of
the affected series on the dates payments are due.
Form,
Exchange, and Transfer
Except
as we may otherwise provide in a prospectus supplement, we will issue debt securities only in fully registered form without coupons and,
unless we otherwise specify in the applicable prospectus supplement, in denominations of $1,000 and any integral multiple thereof. Except
as we may otherwise provide in a prospectus supplement, the indenture will provide that we may issue debt securities in temporary or
permanent global form and as book-entry securities that will be deposited with a depositary named by us and identified in a prospectus
supplement with respect to that series.
At
the option of the holder, subject to the terms of the indenture and the limitations applicable to global securities described in the
applicable prospectus supplement, the holder will be able to exchange the debt securities for other debt securities of the same series,
in any authorized denomination and of like tenor and aggregate principal amount.
Subject
to the terms of the indenture and the limitations applicable to global securities set forth in the applicable prospectus supplement,
holders may present the debt securities for exchange or for registration of transfer, duly endorsed or with the form of transfer endorsed
thereon duly executed if so required by us or the security registrar, at the office of the security registrar or at the office of any
transfer agent designated by us for this purpose. Unless otherwise provided in the debt securities or the indenture, we will make no
service charge for any registration of transfer or exchange, but we may require payment of any taxes or other governmental charges.
We
will name in the applicable prospectus supplement the security registrar, and any transfer agent in addition to the security registrar,
that we initially designate for any debt securities. We may at any time designate additional transfer agents or rescind the designation
of any transfer agent or approve a change in the office through which any transfer agent acts, except that we will be required to maintain
a transfer agent in each place of payment for the debt securities of each series.
Except
as we may otherwise provide in a prospectus supplement, if we elect to redeem the debt securities of any series, we will not be required
to:
| ● | issue,
register the transfer of, or exchange any debt securities of that series during a period
beginning at the opening of business 15 days before the day of mailing of a notice of redemption
of any debt securities that may be selected for redemption and ending at the close of business
on the day of the mailing; or |
| ● | register
the transfer of or exchange any debt securities so selected for redemption, in whole or in
part, except the unredeemed portion of any debt securities we are redeeming in part. |
Information
Concerning the Trustee
The
trustee, other than during the occurrence and continuance of an event of default under the indenture, will undertake to perform only
those duties as are specifically set forth in the indenture. Upon an event of default, the trustee must use the same degree of care as
a prudent person would exercise or use in the conduct of his or her own affairs. Subject to this provision, the trustee will be under
no obligation to exercise any of the powers given it by the indenture at the request of any holder unless it is offered reasonable security
and indemnity against the costs, expenses and liabilities that it might incur.
Payment
and Paying Agents
Unless
we otherwise indicate in the applicable prospectus supplement, we will make payment of interest on any interest payment date to the person
in whose name the debt securities, or one or more predecessor securities, are registered at the close of business on the regular record
date for the interest.
Unless
we otherwise indicate in the applicable prospectus supplement, we will pay principal of and any premium and interest at the office of
the trustee or, at the option of the Company, by check payable to the holder. Unless we otherwise indicate in a prospectus supplement,
we will designate the corporate trust office of the trustee our sole paying agent for payments. We will name in the applicable prospectus
supplement any other paying agents that we initially designate. We will maintain a paying agent in each place of payment.
All
money we pay to a paying agent or the trustee for the payment of principal or any premium or interest which remains unclaimed at the
end of two years after such principal, premium or interest has become due and payable will be repaid to us, and the holder of the security
thereafter may look only to us for payment thereof.
Governing
Law
The
indentures and the debt securities will be governed by and construed in accordance with the laws of the State of New York, except to
the extent that the Trust Indenture Act is applicable.
Subordination
of Subordinated Debt Securities
Our
obligations pursuant to any subordinated debt securities will be unsecured and will be subordinate and junior in priority of payment
to certain of our other indebtedness to the extent described in a prospectus supplement. The subordinated indenture does not limit the
amount of senior indebtedness we may incur. It also does not limit us from issuing any other secured or unsecured debt.
DESCRIPTION
OF WARRANTS
General
We
may issue warrants to purchase shares of our common stock, preferred stock and/or debt securities in one or more series together with
other securities or separately, as described in the applicable prospectus supplement. Below is a description of certain general terms
and provisions of the warrants that we may offer. Particular terms of the warrants will be described in the warrant agreements and the
prospectus supplement relating to the warrants.
The
applicable prospectus supplement will contain, where applicable, the following terms of and other information relating to the warrants:
| ● | the
specific designation and aggregate number of, and the price at which we will issue, the warrants; |
| ● | the
currency or currency units in which the offering price, if any, and the exercise price are
payable; |
| ● | the
designation, amount and terms of the securities purchasable upon exercise of the warrants; |
| ● | if
applicable, the exercise price for shares of our common stock and the number of shares of
common stock to be received upon exercise of the warrants; |
| ● | if
applicable, the exercise price for shares of our preferred stock, the number of shares of
preferred stock to be received upon exercise, and a description of that series of our preferred
stock; |
| ● | if
applicable, the exercise price for our debt securities, the amount of debt securities to
be received upon exercise, and a description of that series of debt securities; |
| ● | the
date on which the right to exercise the warrants will begin and the date on which that right
will expire or, if you may not continuously exercise the warrants throughout that period,
the specific date or dates on which you may exercise the warrants; |
| ● | whether
the warrants will be issued in fully registered form or bearer form, in defmitive or global
form or in any combination of these forms, although, in any case, the form of a warrant included
in a unit will correspond to the form of the unit and of any security included in that unit; |
| ● | any
applicable material U.S. federal income tax consequences; |
| ● | the
identity of the warrant agent for the warrants and of any other depositaries, execution or
paying agents, transfer agents, registrars or other agents; |
| ● | the
proposed listing, if any, of the warrants or any securities purchasable upon exercise of
the warrants on any securities exchange; |
| ● | if
applicable, the date from and after which the warrants and the common stock, preferred stock
and/or debt securities will be separately transferable; |
| ● | if
applicable, the minimum or maximum amount of the warrants that may be exercised at any one
time; |
| ● | information
with respect to book-entry procedures, if any; |
| ● | the
anti-dilution provisions of the warrants, if any; |
| ● | any
redemption or call provisions; |
| ● | whether
the warrants may be sold separately or with other securities as parts of units; and |
| ● | any
additional terms of the warrants, including terms, procedures and limitations relating to
the exchange and exercise of the warrants. |
Transfer
Agent and Registrar
The
transfer agent and registrar for any warrants will be set forth in the applicable prospectus supplement.
DESCRIPTION
OF RIGHTS
General
We
may issue rights to our stockholders to purchase shares of our common stock, preferred stock or the other securities described in this
prospectus. We may offer rights separately or together with one or more additional rights, debt securities, preferred stock, common stock
or warrants, or any combination of those securities in the form of units, as described in the applicable prospectus supplement. Each
series of rights will be issued under a separate rights agreement to be entered into between us and a bank or trust company, as rights
agent. The rights agent will act solely as our agent in connection with the certificates relating to the rights of the series of certificates
and will not assume any obligation or relationship of agency or trust for or with any holders of rights certificates or beneficial owners
of rights. The following description sets forth certain general terms and provisions of the rights to which any prospectus supplement
may relate. The particular terms of the rights to which any prospectus supplement may relate and the extent, if any, to which the general
provisions may apply to the rights so offered will be described in the applicable prospectus supplement. To the extent that any particular
terms of the rights, rights agreement or rights certificates described in a prospectus supplement differ from any of the terms described
below, then the terms described below will be deemed to have been superseded by that prospectus supplement. We encourage you to read
the applicable rights agreement and rights certificate for additional information before you decide whether to purchase any of our rights.
We will provide in a prospectus supplement the following terms of the rights being issued:
| ● | the
date of determining the stockholders entitled to the rights distribution; |
| ● | the
aggregate number of shares of common stock, preferred stock or other securities purchasable
upon exercise of the rights; |
| ● | the
aggregate number of rights issued; |
| ● | whether
the rights are transferrable and the date, if any, on and after which the rights may be separately
transferred; |
| ● | the
date on which the right to exercise the rights will commence, and the date on which the right
to exercise the rights will expire; |
| ● | the
method by which holders of rights will be entitled to exercise; |
| ● | the
conditions to the completion of the offering, if any; |
| ● | the
withdrawal, termination and cancellation rights, if any; |
| ● | whether
there are any backstop or standby purchaser or purchasers and the terms of their commitment,
if any; |
| ● | whether
stockholders are entitled to oversubscription rights, if any; |
| ● | any
applicable material U.S. federal income tax considerations; and |
| ● | any
other terms of the rights, including terms, procedures and limitations relating to the distribution,
exchange and exercise of the rights, as applicable. |
Each
right will entitle the holder of rights to purchase for cash the principal amount of shares of common stock, preferred stock or other
securities at the exercise price provided in the applicable prospectus supplement. Rights may be exercised at any time up to the close
of business on the expiration date for the rights provided in the applicable prospectus supplement.
Holders
may exercise rights as described in the applicable prospectus supplement. Upon receipt of payment and the rights certificate properly
completed and duly executed at the corporate trust office of the rights agent or any other office indicated in the prospectus supplement,
we will, as soon as practicable, forward the shares of common stock, preferred stock or other securities, as applicable, purchasable
upon exercise of the rights. If less than all of the rights issued in any rights offering are exercised, we may offer any unsubscribed
securities directly to persons other than stockholders, to or through agents, underwriters or dealers or through a combination of such
methods, including pursuant to standby arrangements, as described in the applicable prospectus supplement.
Rights
Agent
The
rights agent for any rights we offer will be set forth in the applicable prospectus supplement.
DESCRIPTION
OF UNITS
The
following description, together with the additional information that we include in any applicable prospectus supplements summarizes the
material terms and provisions of the units that we may offer under this prospectus. While the terms we have summarized below will apply
generally to any units that we may offer under this prospectus, we will describe the particular terms of any series of units in more
detail in the applicable prospectus supplement. The terms of any units offered under a prospectus supplement may differ from the terms
described below.
We
will incorporate by reference from reports that we file with the SEC, the form of unit agreement that describes the terms of the series
of units we are offering, and any supplemental agreements, before the issuance of the related series of units. The following summaries
of material terms and provisions of the units are subject to, and qualified in their entirety by reference to, all the provisions of
the unit agreement and any supplemental agreements applicable to a particular series of units. We urge you to read the applicable prospectus
supplements related to the particular series of units that we may offer under this prospectus, as well as any related free writing prospectuses
and the complete unit agreement and any supplemental agreements that contain the terms of the units.
General
We
may issue units consisting of common stock, preferred stock, one or more debt securities, warrants or rights for the purchase of common
stock, preferred stock and/or debt securities in one or more series, in any combination. Each unit will be issued so that the holder
of the unit is also the holder of each security included in the unit. Thus, the holder of a unit will have the rights and obligations
of a holder of each security included in the unit. The unit agreement under which a unit is issued may provide that the securities included
in the unit may not be held or transferred separately, at any time or at any time before a specified date.
We
will describe in the applicable prospectus supplement the terms of the series of units being offered, including:
| ● | the
designation and terms of the units and of the securities comprising the units, including
whether and under what circumstances those securities may be held or transferred separately; |
| ● | any
provisions of the governing unit agreement that differ from those described below; and |
| ● | any
provisions for the issuance, payment, settlement, transfer or exchange of the units or of
the securities comprising the units. |
The
provisions described in this section, as well as those set forth in any prospectus supplement or as described under “Description
of Common Stock,” “Description of Preferred Stock,” “Description of Debt Securities,” “Description
of Warrants” and “Description of Rights” will apply to each unit, as applicable, and to any common stock, preferred
stock, debt security, warrant or right included in each unit, as applicable.
Unit
Agent
The
name and address of the unit agent, if any, for any units we offer will be set forth in the applicable prospectus supplement.
Issuance
in Series
We
may issue units in such amounts and in such numerous distinct series as we determine.
Enforceability
of Rights by Holders of Units
Each
unit agent will act solely as our agent under the applicable unit agreement and will not assume any obligation or relationship of agency
or trust with any holder of any unit. A single bank or trust company may act as unit agent for more than one series of units. A unit
agent will have no duty or responsibility in case of any default by us under the applicable unit agreement or unit, including any duty
or responsibility to initiate any proceedings at law or otherwise, or to make any demand upon us. Any holder of a unit may, without the
consent of the related unit agent or the holder of any other unit, enforce by appropriate legal action its rights as holder under any
security included in the unit.
CERTAIN
PROVISIONS OF DELAWARE LAW AND
OF
THE COMPANY’S CERTIFICATE OF INCORPORATION AND BYLAWS
Certificate
of Incorporation and Bylaws
A
number of provisions of our certificate of incorporation and bylaws concern matters of corporate governance and the rights of our stockholders.
Provisions that grant our Board the ability to issue shares of preferred stock and to set the voting rights, preferences and other terms
thereof may discourage takeover attempts that are not first approved by our Board, including takeovers that may be considered by some
stockholders to be in their best interests, such as those attempts that might result in a premium over the market price for the shares
held by stockholders. Certain provisions could delay or impede the removal of incumbent directors even if such removal would be beneficial
to our stockholders, such as the classification of our Board and the lack of cumulative voting. Since our Board has the power to retain
and discharge our officers, these provisions could also make it more difficult for existing stockholders or another party to effect a
change in management.
These
provisions may have the effect of deterring hostile takeovers or delaying changes in our control or in our management. These provisions
are intended to enhance the likelihood of continued stability in the composition of our Board and in the policies it implements and to
discourage certain types of transactions that may involve an actual or threatened change of our control. These provisions are designed
to reduce our vulnerability to an unsolicited acquisition proposal. The provisions also are intended to discourage certain tactics that
may be used in proxy fights. However, such provisions could have the effect of discouraging others from making tender offers for our
shares and, as a consequence, they also may inhibit fluctuations in the market price of our shares that could result from actual or rumored
takeover attempts.
These
provisions also could discourage or make more difficult a merger, tender offer or proxy contest, even if they could be favorable to the
interests of stockholders and could potentially depress the market price of our common stock. Our Board believes that these provisions
are appropriate to protect our interests and the interests of our stockholders.
Classification
of Board; No Cumulative Voting. Our certificate of incorporation and bylaws provide for our Board to be divided into three classes,
with staggered three-year terms. Only one class of directors is elected at each annual meeting of our stockholders, with the other classes
continuing for the remainder of their respective three-year terms. Because our stockholders do not have cumulative voting rights, our
stockholders representing a majority of the shares of common stock outstanding will be able to elect those directors due to be elected
at each annual meeting of our stockholders.
Meetings
of and Actions by Stockholders. Our bylaws provide that annual meetings of our stockholders may take place at the time and place
designated by our Board. A special meeting of our stockholders may be called at any time by our Board, the chairman of our Board or our
president. Our bylaws provide that (i) our Board can fix separate record dates for determining stockholders entitled to receive notice
of a stockholder meeting and for determining stockholders entitled to vote at the meeting; (ii) we may hold a stockholder meeting by
means of remote communications; (iii) any stockholder seeking to have the stockholders authorize or take corporate action by written
consent shall, by written notice to our secretary, request that our Board fix a record date and our Board shall adopt a resolution fixing
the record date in all events within 10 calendar days after a request is received; and (iv) a written consent of stockholders shall not
be effective unless a written consent signed by a sufficient number of stockholders to take such action is received by us within 60 calendar
days of the earliest dated written consent received.
Advance
Notice Requirements for Stockholder Proposals and Director Nominations. Our bylaws provide that stockholders seeking to bring business
before an annual meeting of stockholders or to nominate candidates for election as directors at an annual meeting of stockholders must
provide timely notice in writing. To be timely, a stockholder’s notice must be delivered to, or mailed and received by, our secretary
at our principal executive offices not later than the close of business on the 90th calendar day, nor earlier than the close of business
on the 120th calendar day in advance of the date specified in our proxy statement released to stockholders in connection with the previous
year’s annual meeting of stockholders. If the date of the annual meeting is more than 30 calendar days before or after such anniversary
date, notice by the stockholder to be timely must be not earlier than the close of business on the 120th calendar day in advance of such
date of annual meeting and not later than the close of business on the later of the 90th calendar day in advance of such date of annual
meeting or the tenth calendar day following the date on which public announcement of the date of the meeting is made. In no event shall
the public announcement of an adjournment or postponement of an annual meeting commence a new time period (or extend any time period)
for the giving of an advance notice by any stockholder. Any stockholder that proposes director nominations or other business must be
a stockholder of record at the time the advance notice is delivered by such stockholder to us and entitled to vote at the meeting. Our
bylaws also specify requirements as to the form and content of a stockholder’s notice. These provisions may preclude stockholders
from bringing matters before an annual meeting of stockholders or from making nominations for the election of directors at an annual
meeting of stockholders. Unless otherwise required by law, any director nomination or other business shall not be made or transacted
if the stockholder (or a qualified representative of the stockholder) does not appear at the meeting to present the director nominee
or other proposed business.
Filling
of Board Vacancies. Our certificate of incorporation and bylaws provide that the authorized size of our Board shall be determined
by our Board by Board resolution from time to time and that our Board has the exclusive power to fill any vacancies and newly created
directorships resulting from any increase in the authorized number of directors and the stockholders do not have the power to fill such
vacancies. Vacancies in our Board and newly created directorships resulting from any increase in the authorized number of directors on
our board may be filled by a majority of the directors remaining in office, even though that number may be less than a quorum of our
board, or by a sole remaining director. A director so elected to fill a vacancy shall serve for the remaining term of the predecessor
he or she replaced and until his or her successor is elected and has qualified, or until his or her earlier resignation, removal or death.
Amendment
of the Certificate of Incorporation. Our certificate of incorporation may be amended, altered, changed or repealed at a meeting of
our stockholders entitled to vote thereon by the affirmative vote of a majority of the outstanding stock entitled to vote thereon and
a majority of the outstanding stock of each class entitled to vote thereon as a class, or in the manner prescribed by the DGCL.
Amendment
of the Bylaws. Our bylaws may be amended or repealed, or new bylaws may be adopted, by either our Board or the affirmative vote of
at least 66 2/3% of the voting power of our outstanding shares.
Section
203 of the DGCL
We
are subject to Section 203 of the Delaware General Corporation Law, or DGCL, which prohibits a Delaware corporation from engaging in
any business combination with any interested stockholder for a period of three years after the date that such stockholder became an interested
stockholder, with the following exceptions:
| ● | before
such date, the board of directors of the corporation approved either the business combination
or the transaction that resulted in the stockholder becoming an interested stockholder; |
| ● | upon
completion of the transaction that resulted in the stockholder becoming an interested stockholder,
the interested stockholder owned at least 85% of the voting stock of the corporation outstanding
at the time the transaction began, excluding for purposes of determining the voting stock
outstanding (but not the outstanding voting stock owned by the interested stockholder) those
shares owned (i) by persons who are directors and also officers and (ii) pursuant to employee
stock plans in which employee participants do not have the right to determine confidentially
whether shares held subject to the plan will be tendered in a tender or exchange offer; and |
| ● | on
or after such date, the business combination is approved by the board of directors and authorized
at an annual or special meeting of the stockholders, and not by written consent, by the affirmative
vote of at least 66 2/3% of the outstanding voting stock that is not owned by the interested
stockholder. |
In
general, Section 203 defines a business combination to include the following:
| ● | any
merger or consolidation involving the corporation and the interested stockholder or with
any other corporation, partnership, unincorporated association or other entity if the merger
or consolidation is caused by the interested stockholder; |
| ● | any
sale, lease, transfer, pledge or other disposition of 10% or more of the assets of the corporation
to or with the interested stockholder; |
| ● | subject
to certain exceptions, any transaction that results in the issuance or transfer by the corporation
of any stock of the corporation to the interested stockholder; |
| ● | any
transaction involving the corporation that has the effect of increasing the proportionate
share of the stock or any class or series of the corporation beneficially owned by the interested
stockholder; and |
| ● | the
receipt by the interested stockholder of the benefit of any loans, advances, guarantees,
pledges or other financial benefits by or through the corporation. |
In
general, Section 203 of the DGCL defines an “interested stockholder” as an entity or person who, together with the entity’s
or person’s affiliates and associates, beneficially owns, or is an affiliate of the corporation and within three years prior to
the time of determination of interested stockholder status did own, 15% or more of the outstanding voting stock of the corporation.
A
Delaware corporation may “opt out” of these provisions with an express provision in its certificate of incorporation. We
have not opted out of these provisions, which may as a result, discourage or prevent mergers or other takeover or change of control attempts
of us.
PLAN
OF DISTRIBUTION
We
may sell the securities, from time to time, to or through underwriters or dealers, through agents or remarketing firms, or directly to
one or more purchasers pursuant to:
| ● | underwritten
public offerings; |
| ● | negotiated
transactions; |
| ● | “At
the Market Offerings,” within the meaning of Rule 415(a)(4) of the Securities Act,
into an existing trading market, at prevailing market prices; or |
| ● | through
a combination of these methods. |
We
may distribute securities from time to time in one or more transactions:
| ● | at
a fixed price or prices, which may be changed; |
| ● | at
market prices prevailing at the time of sale; |
| ● | at
prices related to such prevailing market prices; or |
A
prospectus supplement or supplements will describe the terms of the offering of the securities, including:
| ● | the
name or names of the underwriters, if any; |
| ● | if
the securities are to be offered through the selling efforts of brokers or dealers, the plan
of distribution and the terms of any agreement, arrangement, or understanding entered into
with broker(s) or dealer(s) prior to the effective date of the registration statement, and,
if known, the identity of any broker(s) or dealer(s) who will participate in the offering
and the amount to be offered through each; |
| ● | the
purchase price of the securities and the proceeds we will receive from the sale; |
| ● | if
any of the securities being registered are to be offered otherwise than for cash, the general
purposes of the distribution, the basis upon which the securities are to be offered, the
amount of compensation and other expenses of distribution, and by whom they are to be borne; |
| ● | any
delayed delivery arrangements; |
| ● | any
over-allotment options under which underwriters may purchase additional securities from us; |
| ● | any
agency fees or underwriting discounts and other items constituting agents’ or underwriters’
compensation; |
| ● | any
public offering price; |
| ● | any
discounts, commissions or commissions allowed or reallowed or paid to dealers; |
| ● | the
identity and relationships of any finders, if applicable; and |
| ● | any
securities exchange or market on which the securities may be listed. |
Only
underwriters named in the prospectus supplement will be underwriters of the securities offered by that prospectus supplement. 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. Unless otherwise indicated in the prospectus supplement, subject to certain conditions, the underwriters will be obligated
to purchase all of the securities offered by the prospectus supplement, other than securities covered by any over-allotment option. Any
public offering price and any discounts or concessions allowed or reallowed or paid to dealers may change from time to time. We may use
underwriters with whom we have a material relationship. We will describe in the prospectus supplement, naming the underwriter, the nature
of any such relationship.
We
may use a remarketing firm to offer the securities in connection with a remarketing arrangement upon their purchase. Remarketing firms
will act as principals for their own account or as agents for us. These remarketing firms will offer or sell the securities pursuant
to the terms of the securities. A prospectus supplement will identify any remarketing firm and the terms of its agreement, if any, with
us and will describe the remarketing firm’s compensation. Remarketing firms may be deemed to be underwriters in connection the
securities they remarket.
If
we offer and sell securities through a dealer, we or an underwriter will sell the securities to the dealer, as principal. The dealer
may resell the securities to the public at varying prices to be determined by the dealer at the time of resale. Any such dealer may be
deemed to be an underwriter of the securities offered and sold. The name of the dealer and the terms of the transaction will be set forth
in the applicable prospectus supplement.
We
may sell securities directly or through agents we designate from time to time. We will name any agent involved in the offering and sale
of securities and we will describe any commissions we will pay the agent in the prospectus supplement. Unless the prospectus supplement
states otherwise, our agent will act on a best-efforts basis for the period of its appointment.
We
may sell securities directly to one or more purchasers without using underwriters or agents. Underwriters, dealers and agents that participate
in the distribution of the securities may be underwriters as defined in the Securities Act, and any discounts or commissions they receive
from us and any profit on their resale of the securities may be treated as underwriting discounts and commissions under the Securities
Act.
We
may authorize agents or underwriters to solicit offers by certain types of 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.
We
may provide agents and underwriters with indemnification against civil liabilities, including liabilities under the Securities Act, or
contribution with respect to payments that the agents or underwriters may make with respect to these liabilities. Agents and underwriters
may engage in transactions with, or perform services for, us in the ordinary course of business.
We
may offer 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.
Any
underwriter may engage in over-allotment, stabilizing transactions, short-covering transactions and penalty bids in accordance with Regulation
M under the Exchange Act. Over-allotment involves sales in excess of the offering size, which create a short position. Stabilizing transactions
permit bids to purchase the underlying security so long as the stabilizing bids do not exceed a specified maximum price. Syndicate-covering
or other short-covering transactions involve purchases of the securities, either through exercise of the over-allotment option or in
the open market after the distribution is completed, to cover short positions. Penalty bids permit the underwriters to reclaim a selling
concession from a dealer when the securities originally sold by the dealer are purchased in a stabilizing or covering transaction to
cover short positions. Those activities may cause the price of the securities to be higher than it would otherwise be. If commenced,
the underwriters may discontinue any of the activities at any time.
Any
underwriters that are qualified market makers on The Nasdaq Capital Market may engage in passive market making transactions in the common
stock on The Nasdaq Capital Market in accordance with Regulation M under the Exchange Act. Passive market makers must comply with applicable
volume and price limitations and must be identified as passive market makers. Passive market making may stabilize the market price of
the securities at a level above that which might otherwise prevail in the open market and, if commenced, may be discontinued at any time.
LEGAL
MATTERS
Covington
& Burling LLP, Boston, Massachusetts, will pass upon the validity of the issuance of the securities to be offered by this prospectus.
EXPERTS
WithumSmith+Brown,
PC, or Withum, independent registered public accounting firm, has served as our independent accountants since 2017 and audited our consolidated
financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2023, as set forth in their report, which
is incorporated by reference in this prospectus and elsewhere in the registration statement. Our financial statements are incorporated
herein by reference in reliance on Withum’s report, given on their authority as experts in accounting and auditing.
WHERE
YOU CAN FIND MORE INFORMATION
We
file reports, proxy statements and other information with the SEC. The SEC maintains a website that contains reports, proxy and information
statements and other information about issuers, such as us, who file electronically with the SEC. The address of that website is http://www.sec.gov.
Our
web site address is http://www.imunon.com. There we make available free of charge, on or through the investor relations section
of our website, annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to those reports
filed pursuant to Section 13(a) or 15(d) of the Exchange Act as soon as reasonably practicable after we electronically file such material
with the SEC. The information on our web site, however, is not, and should not be deemed to be, a part of this prospectus. All website
addresses in this prospectus are intended to be inactive textual references only.
This
prospectus is part of a registration statement that we filed with the SEC and does not contain all of the information in the registration
statement. The full registration statement may be obtained from the SEC or us, as provided below. You may inspect a copy of the registration
statement through the SEC’s website, as provided above.
INCORPORATION
OF DOCUMENTS BY REFERENCE
The
SEC allows us to “incorporate by reference” information that we file with them. Incorporation by reference allows us to disclose
important information to you by referring you to those other documents. The information incorporated by reference is an important part
of this prospectus, and information that we file later with the SEC will automatically update and supersede this information. We filed
a registration statement on Form S-3 under the Securities Act with the SEC with respect to the securities we may offer pursuant to this
prospectus. This prospectus omits certain information contained in the registration statement, as permitted by the SEC. You should refer
to the registration statement, including the exhibits, for further information about us and the securities we may offer pursuant to this
prospectus. Statements in this prospectus regarding the provisions of certain documents filed with, or incorporated by reference in,
the registration statement are not necessarily complete and each statement is qualified in all respects by that reference. Copies of
all or any part of the registration statement, including the documents incorporated by reference or the exhibits, may be obtained upon
payment of the prescribed rates at the offices of the SEC listed above in “Where You Can Find More Information.” The documents
we are incorporating by reference are:
| ● | our
Annual Report on Form 10-K for the fiscal year ended December 31, 2023 that we filed with
the SEC on March 28, 2024; |
| ● | the
portions of our definitive proxy statement on Schedule 14A that we filed with the SEC on
April 26, 2024, that are deemed “filed” with the SEC under the Exchange Act; |
| ● | our
Quarterly Report on Form 10-Q for the quarter ended March 31, 2024 that we filed with the
SEC on May 13, 2024; |
| ● | the
description of our securities, incorporated herein by reference to Exhibit 4.5 to our Annual
Report on Form 10-K for the fiscal year ended December 31, 2019. |
All
reports and other documents subsequently filed by us pursuant to Sections 13(a), 13(c), 14 and 15(d) of the Exchange Act after the date
of this prospectus and prior to the termination or completion of the offering of securities under this prospectus shall be deemed to
be incorporated by reference in this prospectus and to be a part hereof from the date of filing such reports and other documents.
In
addition, all reports and other documents filed by us pursuant to the Exchange Act after the date of the initial registration statement
and prior to effectiveness of the registration statement shall be deemed to be incorporated by reference into this prospectus.
Any
statement contained in this prospectus or in a document incorporated or deemed to be incorporated by reference into this prospectus will
be deemed to be modified or superseded for purposes of this prospectus to the extent that a statement contained in this prospectus or
any other subsequently filed document that is deemed to be incorporated by reference into this prospectus modifies or supersedes the
statement. Any statement so modified or superseded will not be deemed, except as so modified or superseded, to constitute a part of this
prospectus.
You
may request a free copy of any of the documents incorporated by reference in this prospectus (other than exhibits, unless they are specifically
incorporated by reference in the documents) by writing or telephoning us at the following address:
Imunon,
Inc.
997
Lenox Drive, Suite 100
Lawrenceville,
NJ 08648
(609)
896-9100
Exhibits
to the filings will not be sent, however, unless those exhibits have specifically been incorporated by reference in this prospectus.
The
documents incorporated by reference may be accessed at our website: http://www.imunon.com. We have included our website
address in this prospectus solely as an inactive textual reference.
You
should rely only on information contained in, or incorporated by reference into, this prospectus and any prospectus supplement. We have
not authorized anyone to provide you with information different from that contained in this prospectus or incorporated by reference in
this prospectus. We are not making offers to sell the securities in any jurisdiction in which such an offer or solicitation is not authorized
or in which the person making such offer or solicitation is not qualified to do so or to anyone to whom it is unlawful to make such offer
or solicitation.
Imunon,
Inc.
$75,000,000
Common
Stock
Preferred
Stock
Debt
Securities
Warrants
Rights
Units
PROSPECTUS
, 2024
THE
INFORMATION IN THIS PROSPECTUS IS NOT COMPLETE AND MAY BE CHANGED. WE MAY NOT SELL THESE SECURITIES UNTIL THE REGISTRATION STATEMENT
FILED WITH THE SECURITIES AND EXCHANGE COMMISSION IS 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 15, 2024
PROSPECTUS
$5,500,000
Imunon,
Inc.
Common
Stock
We
have entered into an At the Market Offering Agreement, dated as of May 25, 2022, as amended by Amendment No. 1 to At the Market Offering
Agreement, dated as of May 15, 2024, which, as amended, we refer to as the ATM Agreement, with H.C. Wainwright & Co., LLC, or Wainwright,
relating to shares of our common stock offered by this prospectus. Under the ATM Agreement, we may offer and sell shares of our common
stock having an aggregate offering price of up to $5,500,000 from time to time through or to Wainwright, acting as agent or principal,
through this prospectus.
Our
common stock is listed on The Nasdaq Capital Market under the symbol “IMNN”. On May 14, 2024, the last reported sale price
of our common stock on The Nasdaq Capital Market was $1.35 per share.
The
aggregate market value of our voting and non-voting common stock held by non-affiliates pursuant to General Instruction I.B.6. of Form
S-3 is $18,075,494, which was calculated based on 9,365,541 outstanding shares of our voting and non-voting common stock held
by non-affiliates as of May 10, 2024, and at a price of $1.93 per share, the closing sale price of our common stock reported on The Nasdaq
Capital Market on April 1, 2024, a date within 60 days prior to the date of this prospectus. During the 12 calendar months prior to,
and including, the date of this prospectus, we have sold 243,534 shares of common stock for gross proceeds of $334,658.70 pursuant to
General Instruction I.B.6 of Form S-3. We will not offer to sell or sell any shares of our common stock which, when aggregated with all
other shares of our common stock offered pursuant to the registration statement of which this prospectus forms a part, would exceed the
maximum amount permissible under General Instruction I.B.6. of Form S-3.
Sales
of our common stock, if any, under this prospectus may be made in sales deemed to be “at the market offerings” as defined
in Rule 415(a)(4) promulgated under the Securities Act of 1933, as amended, or the Securities Act, including sales made directly on
or through The Nasdaq Capital Market, the existing trading market for our common stock, sales made to or through a market maker other
than on an exchange or otherwise, directly to Wainwright as principal, in negotiated transactions at market prices prevailing at the
time of sale or at prices related to such prevailing market prices, and/or in any other method permitted by law. Wainwright will act as sales agent on a reasonable best efforts basis and use commercially
reasonable efforts to sell on our behalf all of the shares of common stock requested to be sold by us, consistent with its normal trading
and sales practices, on mutually agreed terms between Wainwright and us. There is no arrangement for funds to be received in any escrow,
trust or similar arrangement.
Wainwright
will be entitled to compensation at a fixed commission rate of 3.0% of the gross sales price per share sold. In connection with the sale
of our common stock on our behalf, Wainwright will be deemed to be an “underwriter” within the meaning of the Securities
Act and the compensation of Wainwright will be deemed to be underwriting commissions or discounts.
Investing
in our securities involves a high degree of risk. Before making an investment decision, please read “Risk Factors” beginning
on page S-4 of this prospectus and in the documents incorporated by reference herein.
Neither
the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined
if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.
H.C.
Wainwright & Co.
The
date of this prospectus is , 2024
TABLE
OF CONTENTS
ABOUT
THIS PROSPECTUS
This
prospectus is part of a registration statement that we filed with the Securities and Exchange Commission, or SEC, utilizing a “shelf”
registration process. Under this shelf registration process, we may from time to time sell shares of our common stock having an aggregate
offering price of up to $5,500,000 under this prospectus at prices and on terms to be determined by market conditions at the time of
the offering.
Before
buying any of the common stock that we are offering, we urge you to carefully read this prospectus and any prospectus supplement and
all of the information incorporated by reference herein and therein, as well as the additional information described under the headings
“Where You Can Find More Information” and “Incorporation of Documents by Reference.” These documents contain
important information that you should consider when making your investment decision.
To
the extent any statement in this prospectus, any prospectus supplement and the documents incorporated by reference is inconsistent with
a statement in another of these documents having a later date, the statement in the document having the later date modifies or supersedes
the earlier statement.
You
should rely only on the information contained in or incorporated by reference in this prospectus, any prospectus supplement and any related
free writing prospectus filed by us with the SEC. We have not, and Wainwright has not, authorized anyone to provide you with different
information. If anyone provides you with different or inconsistent information, you should not rely on it. This prospectus and any accompanying
prospectus supplement do not constitute an offer to sell or the solicitation of an offer to buy any securities other than the securities
described in this prospectus or an offer to sell or the solicitation of an offer to buy such securities in any circumstances in which
such offer or solicitation is unlawful. You should assume that the information appearing in this prospectus, and the accompanying prospectus
supplement, if any, the documents incorporated by reference and any related free writing prospectus is accurate only as of their respective
dates. Our business, financial condition, results of operations and prospects may have changed materially since those dates.
We
further note that the representations, warranties and covenants made by us in any agreement that is filed as an exhibit to any document
that is incorporated by reference in this prospectus or any accompanying prospectus supplement were made solely for the benefit of the
parties to such agreement, including, in some cases, for the purpose of allocating risk among the parties to such agreements, and should
not be deemed to be a representation, warranty or covenant to you. Moreover, such representations, warranties or covenants were accurate
only as of the date when made. Accordingly, such representations, warranties and covenants should not be relied on as accurately representing
the current state of our affairs.
Unless
the context otherwise requires, “Imunon,” “IMNN,” “the Company,” “we,” “us,”
“our” and similar terms refer to Imunon, Inc. and our subsidiary, CLSN Laboratories, Inc., also a Delaware corporation.
All
brand names or trademarks appearing in this prospectus are the property of their respective holders. Use or display by us of other parties’
trademarks, trade dress, or products in this prospectus is not intended to, and does not, imply a relationship with, or endorsements
or sponsorship of, us by the trademark or trade dress owners.
PROSPECTUS
SUMMARY
The
following is a summary of what we believe to be the most important aspects of our business and the offering of our securities under this
prospectus. We urge you to read this entire prospectus, including the more detailed consolidated financial statements, notes to the consolidated
financial statements and other information incorporated by reference from our other filings with the SEC. Investing in our securities
involves risks. Therefore, carefully consider the risk factors set forth in our most recent annual and quarterly filings with the SEC,
as well as other information in this prospectus and the documents incorporated by reference herein or therein, before purchasing our
securities. Each of the risk factors could adversely affect our business, operating results and financial condition, as well as adversely
affect the value of an investment in our securities.
About
Imunon, Inc.
Imunon
is a clinical-stage biotechnology company focused on advancing a portfolio of innovative treatments that harness the body’s natural
mechanisms with the aim to generate safe, effective and durable responses across a broad array of human diseases, constituting a differentiating
approach from conventional therapies. IMUNON is developing its non-viral DNA technology across its modalities. The first modality, TheraPlas®,
is developed for the coding of proteins and cytokines in the treatment of solid tumors where an immunological approach is deemed promising.
The second modality, PlaCCine®, is developed for the coding of viral antigens that can elicit a strong immunological response.
This technology may represent a promising platform for the development of vaccines in infectious diseases.
The
Company’s lead clinical program, IMNN-001, is a DNA-based immunotherapy for the localized treatment of advanced ovarian cancer
currently in Phase II development. IMNN-001 works by instructing the body to produce durable levels, within certain safety parameters,
of powerful cancer-fighting molecules, such as interleukin-12 and interferon gamma, at the tumor site. Additionally, the Company is entering
a first-in-human study of its COVID-19 booster vaccine (IMNN-101). We will continue to leverage these modalities and to advance the technological
frontier of plasmid DNA to better serve patients with difficult-to-treat conditions.
Additional
Information
For
additional information related to our business and operations, please refer to the reports incorporated herein by reference, as described
under the caption “Incorporation of Documents by Reference” on page S-12 of this prospectus.
Our
Corporate Information
We
were founded in 1982 under the corporate name Celsion Corporation and are a Delaware corporation. Our principal executive offices are
located at 997 Lenox Drive, Suite 100, Lawrenceville, NJ 08648. Our telephone number is (609) 896-9100. Our website is www.imunon.com.
On September 19, 2022, Celsion Corporation announced a corporate name change to Imunon, Inc., reflecting the evolution of the Company’s
business focus and its commitment to developing cutting-edge immunotherapies and next-generation vaccines to treat cancer and infectious
diseases. The information contained on or that can be accessed through our website is not incorporated by reference into this prospectus,
and you should not consider information on our website to be part of this prospectus or in deciding to purchase our common stock.
THE
OFFERING
| Common
stock offered by us |
|
Shares
of our common stock having an aggregate offering price of up to $5,500,000. |
| |
|
|
| Common
stock outstanding after this offering |
|
Up
to 13,474,963 shares, assuming the sale of up to 4,074,074 shares of our common stock at a price of $1.35 per
share, which was the closing price of our common stock on the Nasdaq Capital Market on May 14, 2024. The actual number of shares
issued will vary depending on the sales price under this offering. |
| |
|
|
| Manner
of offering |
|
“At
the market offerings” that may be made from time to time through our sales agent, Wainwright. See “Plan of Distribution”
on page S-10 of this prospectus. |
| |
|
|
| Use
of proceeds |
|
We
currently intend to use the net proceeds from this offering, if any, for general corporate purposes, including research and development
activities, capital expenditures and working capital. See “Use of Proceeds” on page S-7 of this prospectus. |
| |
|
|
| Risk
factors |
|
Investing
in our securities involves a high degree of risk. See “Risk Factors” beginning on page S-4 of this prospectus and
the other information included in, or incorporated by reference into, this prospectus for a discussion of certain factors you should
carefully consider before deciding to invest in shares of our common stock. |
| |
|
|
| Nasdaq
Capital Market symbol |
|
“IMNN” |
The
number of shares of common stock to be outstanding after this offering is based on 9,400,889 shares of common stock outstanding as of
March 31, 2024 and excludes in each case as of March 31, 2024:
| ● | 1,006,330
shares of common stock issuable upon the exercise of outstanding options as of March 31,
2024, having a weighted average exercise price of $2.53 per share; |
| ● | 661,985
shares of common stock issuable upon the vesting of common Stock awards as of March 31, 2024,
having a weighted average grant day fair value of $3.13 per share; |
| ● | 160,000
shares of common stock issuable upon the exercise of outstanding warrants as of March 31,
2024 having a weighted average exercise price of $18.86 per share; and |
| ● | 1,122,578
shares of Common Stock reserved for future issuance pursuant to our existing stock incentive
plan. |
In
addition, unless we specifically state otherwise, all information in this prospectus assumes no exercise of outstanding stock options
subsequent to March 31, 2024.
RISK
FACTORS
An
investment in our common stock involves a high degree of risk. Before deciding whether to invest in our securities, you should consider
carefully the risks discussed below, together with the risks under the heading “Risk Factors” under Part I, Item IA of our
Annual Report on Form 10-K for the fiscal year ended December 31, 2023, filed with the SEC on March 28, 2024, as well as any amendment
or update to our risk factors reflected in subsequent filings with the SEC, which are incorporated by reference into this prospectus,
as well as the other information in this prospectus, the information and documents incorporated by reference herein, and any free writing
prospectus that we have authorized for use in connection with this offering. If any of the identified risks actually occur, they could
materially adversely affect our business, financial condition, operating results or prospects and the trading price of our securities.
Additional risks and uncertainties that we do not presently know or that we currently deem immaterial may also impair our business, financial
condition, operating results and prospects and the trading price of our securities.
Because
we will have broad discretion and flexibility in how the net proceeds from this offering are used, we may use the net proceeds in ways
in which you disagree.
We
intend to use the net proceeds from this offering for clinical development of our product candidates, working capital and other general
corporate purposes. See “Use of Proceeds” on page S-7. We have not allocated specific amounts of the net proceeds from
this offering for any of the foregoing purposes. Accordingly, our management will have significant discretion and flexibility in applying
the net proceeds of this offering. You will be relying on the judgment of our management with regard to the use of these net proceeds,
and you will not have the opportunity, as part of your investment decision, to assess whether the net proceeds are being used appropriately.
It is possible that the net proceeds will be invested in a way that does not yield a favorable, or any, return for us. The failure of
our management to use such funds effectively could have a material adverse effect on our business, financial condition, operating results
and cash flow.
We
do not currently intend to pay dividends on our common stock, and any return to investors is expected to come, if at all, only from potential
increases in the price of our common stock.
At
the present time, we intend to use available funds to finance our operations. Accordingly, while payment of dividends rests within the
discretion of our board of directors, we have no intention of paying any such dividends in the foreseeable future. Any return to investors
is expected to come, if at all, only from potential increases in the price of our common stock.
The
common stock offered hereby will be sold in “at-the-market” offerings, and investors who buy shares at different times will
likely pay different prices.
Investors
who purchase shares in this offering at different times will likely pay different prices, and so may experience different outcomes in
their investment results. We will have discretion, subject to market demand, to vary the timing, prices, and numbers of shares sold.
Investors may experience a decline in the value of their shares as a result of share sales made at prices lower than the prices they
paid.
The
actual number of shares we will issue under the ATM Agreement, at any one time or in total, is uncertain.
Subject
to certain limitations in the ATM Agreement and compliance with applicable law, we have the discretion to deliver a sales notice to Wainwright
at any time throughout the term of the ATM Agreement. The number of shares that are sold by Wainwright after we deliver a sales notice
will fluctuate based on the market price of the common stock during the sales period and limits we set with Wainwright. Because the price
per share of each share sold will fluctuate based on the market price of our common stock during the sales period, it is not possible
at this stage to predict the number of shares, if any, that will ultimately be issued.
Purchasers
may experience immediate dilution in the book value per share of the common stock purchased in the offering.
The
shares sold in this offering, if any, will be sold from time to time at various prices. However, the offering price of our common stock
may be substantially higher than the net tangible book value per share of our outstanding common stock. After giving effect to the sale
of shares of our common stock in the aggregate amount of $5,500,000 at an assumed offering price of $1.35 per share, the last
reported sale price of our common stock on May 14, 2024 on The Nasdaq Capital Market, and after deducting commissions and estimated offering
expenses, our as adjusted net tangible book value as of March 31, 2024 would have been approximately $12.5 million or approximately
$0.93 per share. This represents an immediate increase in net tangible book value of approximately $0.16 per share to our
existing stockholders and an immediate dilution in net tangible book value of approximately $0.42 per share to purchasers of our
common stock in this offering. See “Dilution.”
You
may experience future dilution as a result of future equity offerings and other issuances of our securities. In addition, this offering
and future equity offerings and other issuances of our common stock or other securities may adversely affect our common stock price.
In
order to raise additional capital, we may in the future offer additional shares of our common stock or other securities convertible into
or exchangeable for our common stock. We may not be able to sell shares or other securities in any other offering at prices that equal
to or greater than the price paid by any investor pursuant to this offering. In addition, investors purchasing shares or other securities
in the future could have rights superior to existing stockholders. You will incur dilution upon exercise of any outstanding stock options,
warrants or upon the issuance of shares of common stock under our stock incentive programs. In addition, the sale of shares in this offering
and any future sales of a substantial number of shares of our common stock in the public market, or the perception that such sales may
occur, could adversely affect the price of our common stock. We cannot predict the effect, if any, that market sales of those shares
of common stock or the availability of those shares of common stock for sale will have on the market price of our common stock.
We
may be unable to maintain compliance with The Nasdaq Marketplace Rules, which could cause our common stock to be delisted from The Nasdaq
Capital Market. This could result in the lack of a market for our common stock, cause a decrease in the value of an investment in us,
and adversely affect our business, financial condition, and results of operations.
On
December 26, 2023, we received a notice from the staff, or the Staff, of the Nasdaq Stock Market LLC notifying us that, based upon the
closing bid price of our common stock, for the 30 consecutive business days prior to the notice, we no longer met the requirement to
maintain a minimum closing bid price of $1.00 per share, as set forth in Nasdaq Listing Rule 5550(a)(2), or the Minimum Bid Price Rule.
In accordance with Nasdaq Listing Rule 5810(c)(3)(A), we were granted 180 calendar days, or until June 24, 2024, to regain compliance
with the Minimum Bid Price Rule.
On
April 10, 2024, we received a written notice from Nasdaq informing us that we had regained compliance with the Minimum Bid Price Rule,
as the closing bid price of the Company’s common stock had met or exceeded $1.00 per share for 10 consecutive business days. Although,
we have regained compliance with the Minimum Bid Price Rule, there can be no assurance that we will continue to maintain compliance with
the Nasdaq continued listing requirements.
If
the Company is unable to maintain compliance with Nasdaq’s continued listing requirements in the future, and if our common stock
is delisted by Nasdaq, it may be eligible for quotation on an over-the-counter quotation system or on the pink sheets. Upon any such
delisting, our common stock would become subject to the regulations of the SEC relating to the market for penny stocks. A penny stock
is any equity security not traded on a national securities exchange that has a market price of less than $5.00 per share. The regulations
applicable to penny stocks may severely affect the market liquidity for our common stock and could limit the ability of stockholders
to sell securities in the secondary market. In such a case, an investor may find it more difficult to dispose of or obtain accurate quotations
as to the market value of our common stock, and there can be no assurance that our common stock will be eligible for trading or quotation
on any alternative exchanges or markets.
Delisting
from Nasdaq could adversely affect our ability to raise additional financing through public or private sales of equity securities, would
significantly affect the ability of investors to trade our securities and would negatively affect the value and liquidity of our common
stock. Delisting could also have other negative results, including the potential loss of confidence by employees, the loss of institutional
investor interest and fewer business development opportunities.
SPECIAL
NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain
of the statements contained or incorporated in this prospectus are forward-looking and constitute forward-looking statements within the
meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act.
Forward-looking statements may relate to such matters as anticipated financial performance, business prospects, technological developments,
product pipelines, clinical trials and research and development activities, the adequacy of capital reserves and anticipated operating
results and cash expenditures, current and potential collaborations, strategic alternatives and other aspects of our present and future
business operations and similar matters. These statements involve known and unknown risks, uncertainties, and other factors that may
cause our or our industry’s actual results, levels of activity, performance, or achievements to be materially different from any
future results, levels of activity, performance, or achievements expressed or implied by such forward-looking statements. Such factors
include, among other things, unforeseen changes in the course of research and development activities and in clinical trials; possible
changes in cost, timing and progress of development, preclinical studies, clinical trials and regulatory submissions; our collaborators’
ability to obtain and maintain regulatory approval of any of our drug candidates; possible changes in capital structure, financial condition,
future working capital needs and other financial items; uncertainties and assumptions regarding the potential worsening global economic
conditions and the recent disruptions to, and volatility in, financial markets in the U.S. and worldwide resulting from the COVID-19
pandemic, the Russian invasion of Ukraine and the unrest in the Middle East on our business, operations, clinical trials, supply chain,
strategy, goals and anticipated timelines, changes in approaches to medical treatment; introduction of new products by others; success
or failure of our current or future collaboration arrangements, risks and uncertainties associated with possible acquisitions of other
technologies, assets or businesses; our ability to obtain additional funds for our operations; our ability to obtain and maintain intellectual
property protection for our technologies and drug candidates and our ability to operate our business without infringing the intellectual
property rights of others; our reliance on third parties to conduct preclinical studies or clinical trials; the rate and degree of market
acceptance of any approved drug candidates; possible actions by customers, suppliers, strategic partners, potential strategic partners,
competitors and regulatory authorities; compliance with listing standards of The Nasdaq Capital Market; and those listed under “Risk
Factors” this prospectus as well as in our most recent annual report on Form 10-K and our other filings made from time to time
with the SEC.
In
some cases, you can identify forward-looking statements by terminology such as “expect,” “anticipate,” “estimate,”
“plan,” “believe,” “could,” “intend,” “predict,” “may,” “should,”
“will,” “would” and words of similar import regarding the Company’s expectations. Forward-looking statements
are only predictions. Actual events or results may differ materially. Although we believe that our expectations are based on reasonable
assumptions within the bounds of our knowledge of our industry, business and operations, we cannot guarantee that actual results will
not differ materially from our expectations. In evaluating such forward-looking statements, you should specifically consider various
factors, including the risks outlined under “Risk Factors” in our most recent annual report on Form 10-K and our other filings
made from time to time with the SEC. The discussion of risks and uncertainties set forth herein and therein is not necessarily a complete
or exhaustive list of all risks facing the Company at any particular point in time. We operate in a highly competitive, highly regulated
and rapidly changing environment and our business is in a state of evolution. Therefore, it is likely that new risks will emerge, and
that the nature and elements of existing risks will change, over time. It is not possible for management to predict all such risk factors
or changes therein, or to assess either the impact of all such risk factors on our business or the extent to which any individual risk
factor, combination of factors, or new or altered factors, may cause results to differ materially from those contained in any forward-looking
statement. Except as required by law, we assume no obligation to revise or update any forward-looking statement that may be made from
time to time by us or on our behalf for any reason, even if new information becomes available in the future.
USE
OF PROCEEDS
We
currently intend to use the net proceeds from this offering, if any, for general corporate purposes, including research and development
activities, capital expenditures and working capital. Pending the application of the net proceeds, we intend to invest the net proceeds
in short-term, investment grade, interest-bearing securities.
As
of the date of this prospectus, we cannot specify with certainty all of the particular uses for the net proceeds to us from this offering,
if any. As a result, our management will have broad discretion regarding the timing and application of the net proceeds from this offering.
DIVIDEND
POLICY
We
have never declared or paid cash dividends on our common stock. We currently intend to retain our future earnings, if any, for use in
our business and therefore do not anticipate paying cash dividends in the foreseeable future. Payment of future dividends, if any, will
be at the discretion of our board of directors after taking into account various factors, including our financial condition, operating
results, current and anticipated cash needs and plans for expansion.
DILUTION
If
you invest in our common stock, your interest will be diluted to the extent of the difference between the price per share of our common
stock you pay in this offering and the as adjusted net tangible book value per share of our common stock immediately after this offering.
As
of March 31, 2024, our historical net tangible book value was $7.3 million, or $0.77 per share of common stock. Historical net tangible
book value per share represents the amount of our total tangible assets less total liabilities, divided by the number of shares of common
stock outstanding as of March 31, 2024.
After
giving effect to the sale of our common stock in the aggregate amount of $5,500,000 at an assumed offering price of $1.35 per
share, the last reported sale price of our common stock on The Nasdaq Capital Market on May 14, 2024, and after deducting commissions
and estimated offering expenses payable by us, our as adjusted net tangible book value as of March 31, 2024 would have been $12.5
million, or $0.93 per share of common stock. This amount represents an immediate increase in net tangible book value of $0.16
per share to our existing stockholders and an immediate dilution in net tangible book value of approximately $0.42 per share
to new investors in this offering.
The
following table illustrates this calculation on a per share basis. The as adjusted information is illustrative only and will change based
on the actual price to the public, the actual number of shares sold and other terms of the offering determined at the time shares of
our common stock are sold pursuant to this prospectus. The shares sold in this offering, if any, will be sold from time to time at various
prices.
| Assumed
offering price per share |
|
|
|
|
|
$ |
1.35 |
|
| Net
tangible book value per share as of March 31, 2024 |
|
$ |
0.77 |
|
|
|
|
|
| Increase
in net tangible book value per share attributable to this offering |
|
$ |
0.16 |
|
|
|
|
|
| As
adjusted net tangible book value per share as of March 31, 2024, after giving effect to this offering |
|
|
|
|
|
$ |
0.93 |
|
| Dilution
per share to investors purchasing our common stock in this offering |
|
|
|
|
|
$ |
0.42 |
|
A
$0.10 increase (decrease) in the assumed offering price of $1.35 per share, which was the last reported sale price of our
common stock on The Nasdaq Capital Market on May 14, 2024, would increase (decrease) dilution per share to purchasers by approximately
$0.07 $(0.07), after deducting commissions and estimated offering expenses payable by us.
The
above discussion is based on 9,400,889 shares of common stock outstanding as of March 31, 2024 and excludes in each case as of March
31, 2024:
| ● | 1,006,330
shares of common stock issuable upon the exercise of outstanding options as of March 31,
2024, having a weighted average exercise price of $2.53 per share; |
| ● | 661,985
shares of common stock issuable upon the vesting of common Stock awards as of March 31, 2024,
having a weighted average grant day fair value of $3.13 per share; |
| ● | 160,600
shares of common stock issuable upon the exercise of outstanding warrants as of March 31,
2024 having a weighted average exercise price of $18.86 per share; and |
| ● | 1,122,578
shares of Common Stock reserved for future issuance pursuant to our existing stock incentive
plan. |
In
addition, unless we specifically state otherwise, all information in this prospectus assumes no exercise of outstanding stock options
subsequent to March 31, 2024.
To
the extent that stock options outstanding as of March 31, 2024 have been or may be exercised or other shares issued, investors purchasing
our common stock in this offering may experience further dilution. In addition, we may choose to raise additional capital due to market
conditions or strategic considerations even if we believe we have sufficient funds for our current or future operating plans. To the
extent that additional capital is raised through the sale of equity, convertible debt securities or other securities exchangeable for
common stock, the issuance of these securities could result in further dilution to our stockholders.
PLAN
OF DISTRIBUTION
We
previously entered into an ATM Agreement with Wainwright, under which we may issue and sell shares of our common stock having an aggregate
gross sales price of up to $5,500,000 from time to time through or to Wainwright, acting as agent or principal.
Upon
delivery of a placement notice and subject to the terms and conditions of the ATM Agreement, Wainwright may sell our common stock by
any method permitted by law deemed to be an “at the market offering” as defined in Rule 415(a)(4) under the Securities Act,
including sales made directly on or through The Nasdaq Capital Market, the existing trading market for our common stock, sales made to
or through a market maker other than on an exchange or otherwise, directly to Wainwright as principal, in negotiated transactions at
market prices prevailing at the time of sale or at prices related to such prevailing market prices, and/or in any other method permitted
by law. We may instruct Wainwright not to sell common
stock if the sales cannot be effected at or above the price designated by us from time to time. We or Wainwright may suspend the offering
of common stock upon notice and subject to other conditions.
We
will pay Wainwright commissions, in cash, for its services in acting as agent in the sale of our common stock. Wainwright will be entitled
to compensation at a fixed commission rate of 3.0% of the gross sales price per share sold. Because there is no minimum offering amount
required as a condition of this offering, the actual total public offering amount, commissions and proceeds to us, if any, are not determinable
at this time. We agreed to reimburse Wainwright for certain specified expenses, including the fees and disbursements of its legal counsel
in an amount not to exceed $35,000. We estimate that the total expenses of the offering payable by us, excluding commissions payable
to Wainwright under the ATM Agreement, will be approximately $100,000.
Settlement
for sales of common stock will occur on the second business day, or such shorter settlement cycle as may be in effect under Exchange
Act Rule 15c6-1 from time to time, following the date on which any sales are made, or on some other date that is agreed upon by us
and Wainwright in connection with a particular transaction, in return for payment of the net proceeds to us. Sales of our common stock
as contemplated in this prospectus will be settled through the facilities of The Depository Trust Company or by such other means as we
and Wainwright may agree upon. There is no arrangement for funds to be received in an escrow, trust or similar arrangement.
Each
time we wish to issue and sell common stock under the ATM Agreement, we will notify Wainwright of the number or dollar value of shares
to be issued, the time period during which such sales are requested to be made, any limitation on the number of shares that may be sold
in one day, any minimum price below which sales may not be made and other sales parameters as we deem appropriate. Once we have so instructed
Wainwright, unless Wainwright declines to accept the terms of the notice, Wainwright will use its commercially reasonable efforts, consistent
with its sales and trading practices to sell such shares up to the amount specified on such terms and subject to the conditions set forth
in the ATM Agreement. The obligations of Wainwright under the ATM Agreement to sell our common stock are subject to a number of conditions
that we must meet. In connection with the sale of the common stock on our behalf, Wainwright will be deemed to be an “underwriter”
within the meaning of the Securities Act and the compensation of Wainwright will be deemed to be underwriting commissions or discounts.
We have agreed to provide indemnification and contribution to Wainwright against certain civil liabilities, including liabilities under
the Securities Act.
The
offering of our common stock pursuant to the ATM Agreement will terminate upon the earlier of (1) the sale of all shares of our common
stock subject to the ATM Agreement, or (2) termination of the ATM Agreement as permitted therein. We and Wainwright may each terminate
the ATM Agreement at any time upon 10 days’ prior notice.
Wainwright
and its affiliates may in the future provide various investment banking, commercial banking and other financial services for us and our
affiliates, for which services they may in the future receive customary fees. To the extent required by Regulation M, Wainwright will
not engage in any market making activities involving our common stock while the offering is ongoing under this prospectus.
This
prospectus in electronic format may be made available on a website maintained by Wainwright and Wainwright may distribute this prospectus
and the accompanying prospectus electronically.
Nasdaq
Capital Market Listing
Our
common stock is listed on The Nasdaq Capital Market under the symbol “IMNN.”
LEGAL
MATTERS
The
validity of the securities being offered hereby will be passed upon by Covington & Burling LLP, Boston, Massachusetts. Wainwright
is being represented in connection with this offering by Ellenoff Grossman & Schole LLP, New York, New York.
EXPERTS
WithumSmith+Brown,
PC, or Withum, independent registered public accounting firm, has served as our independent accountants since 2017 and audited our consolidated
financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2023, as set forth in their report, which
is incorporated by reference in this prospectus and elsewhere in the registration statement. Our financial statements are incorporated
herein by reference in reliance on Withum’s report, given on their authority as experts in accounting and auditing.
WHERE
YOU CAN FIND MORE INFORMATION
We
file reports, proxy statements and other information with the SEC. The SEC maintains a website that contains reports, proxy and information
statements and other information about issuers, such as us, who file electronically with the SEC. The address of that website is http://www.sec.gov.
Our
web site address is http://www.imunon.com. There we make available free of charge, on or through the investor relations section
of our website, annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to those reports
filed pursuant to Section 13(a) or 15(d) of the Exchange Act as soon as reasonably practicable after we electronically file such material
with the SEC. The information on our web site, however, is not, and should not be deemed to be, a part of this prospectus. All website
addresses in this prospectus are intended to be inactive textual references only.
This
prospectus is part of a registration statement that we filed with the SEC and does not contain all of the information in the registration
statement. The full registration statement may be obtained from the SEC or us, as provided below. You may inspect a copy of the registration
statement through the SEC’s website, as provided above.
INCORPORATION
OF DOCUMENTS BY REFERENCE
The
SEC allows us to “incorporate by reference” information that we file with them. Incorporation by reference allows us to disclose
important information to you by referring you to those other documents. The information incorporated by reference is an important part
of this prospectus, and information that we file later with the SEC will automatically update and supersede this information. We filed
a registration statement on Form S-3 under the Securities Act with the SEC with respect to the securities we may offer pursuant to this
prospectus. This prospectus omits certain information contained in the registration statement, as permitted by the SEC. You should refer
to the registration statement, including the exhibits, for further information about us and the securities we may offer pursuant to this
prospectus. Statements in this prospectus regarding the provisions of certain documents filed with, or incorporated by reference in,
the registration statement are not necessarily complete and each statement is qualified in all respects by that reference. Copies of
all or any part of the registration statement, including the documents incorporated by reference or the exhibits, may be obtained upon
payment of the prescribed rates at the offices of the SEC listed above in “Where You Can Find More Information.” The documents
we are incorporating by reference are:
| |
● |
our
Annual Report on Form 10-K for the fiscal year ended December 31, 2023 that we filed with the SEC on March 28, 2024; |
| |
|
|
| |
● |
the
portions of our definitive proxy statement on Schedule 14A that we filed with the SEC on April 26, 2024, that are deemed “filed”
with the SEC under the Exchange Act; |
| |
|
|
| |
● |
our
Quarterly Report on Form 10-Q for the quarter ended March 31, 2024 that we filed with the SEC on May 13, 2024; |
| |
|
|
| |
● |
our
Current Reports on Form 8-K filed with the SEC on March 12, 2024, March 18, 2024, April 11, 2024 and May 8, 2024; and |
| |
|
|
| |
● |
the
description of our securities, incorporated herein by reference to Exhibit 4.5 to our Annual Report on Form 10-K for the fiscal year
ended December 31, 2019. |
All
reports and other documents subsequently filed by us pursuant to Sections 13(a), 13(c), 14 and 15(d) of the Exchange Act after the date
of this prospectus and prior to the termination or completion of the offering of securities under this prospectus shall be deemed to
be incorporated by reference in this prospectus and to be a part hereof from the date of filing such reports and other documents.
In
addition, all reports and other documents filed by us pursuant to the Exchange Act after the date of the initial registration statement
and prior to effectiveness of the registration statement shall be deemed to be incorporated by reference into this prospectus.
Any
statement contained in this prospectus or in a document incorporated or deemed to be incorporated by reference into this prospectus will
be deemed to be modified or superseded for purposes of this prospectus to the extent that a statement contained in this prospectus or
any other subsequently filed document that is deemed to be incorporated by reference into this prospectus modifies or supersedes the
statement. Any statement so modified or superseded will not be deemed, except as so modified or superseded, to constitute a part of this
prospectus.
You
may request a free copy of any of the documents incorporated by reference in this prospectus (other than exhibits, unless they are specifically
incorporated by reference in the documents) by writing or telephoning us at the following address:
Imunon,
Inc.
997
Lenox Drive, Suite 100
Lawrenceville,
NJ 08648
(609)
896-9100
Exhibits
to the filings will not be sent, however, unless those exhibits have specifically been incorporated by reference in this prospectus.
The
documents incorporated by reference may be accessed at our website: http://www.imunon.com. We have included our website
address in this prospectus solely as an inactive textual reference.
You
should rely only on information contained in, or incorporated by reference into, this prospectus and any prospectus supplement. We have
not authorized anyone to provide you with information different from that contained in this prospectus or incorporated by reference in
this prospectus. We are not making offers to sell the securities in any jurisdiction in which such an offer or solicitation is not authorized
or in which the person making such offer or solicitation is not qualified to do so or to anyone to whom it is unlawful to make such offer
or solicitation.
$5,500,000
Imunon,
Inc.
Common
Stock
PROSPECTUS
H.C.
Wainwright & Co.
,
2024
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 payable by the registrant in connection with the offering of the securities
being registered.
| SEC registration fee | |
$ | 946.24 | |
| FINRA filing fee | |
| 2,701.00 | |
| Accounting fees and expenses | |
| * | |
| Legal fees and expenses | |
| * | |
| Transfer agent and registrar fees | |
| * | |
| Printing and miscellaneous expenses | |
| * | |
| Total | |
$ | * | |
*
These fees and expenses depend on the securities offered and the number of issuances and, accordingly, cannot be estimated at this time.
Item
15. Indemnification of Directors and Officers
The
Company is incorporated under the laws of the State of Delaware. Our bylaws provide that we shall, to the maximum extent and in the manner
permitted by the DGCL, indemnify each of our directors and officers against expenses (including attorneys’ fees), judgments, fines,
settlements and other amounts actually and reasonably incurred in connection with any proceeding, arising by reason of the fact that
such person is or was an agent of the Company; provided, however, that the Company may modify the extent of such indemnification by individual
contracts with its directors and executive officers and, provided, further, that the Company shall not be required to indemnify any director
or officer in connection with any proceeding (or part thereof) initiated by such person unless (i) such indemnification is expressly
required to be made by law, (ii) the proceeding was authorized in advance by our board, (iii) such indemnification is provided by the
Company, in its sole discretion, pursuant to the powers vested in the corporation under the DGCL or (iv) such indemnification is required
to be made pursuant to an individual contract.
The
DGCL provides that a Delaware corporation has the power generally to indemnify its current and former directors, officers, employees
and other agents (each, a Corporate Agent) against expenses and liabilities, including amounts paid in settlement, in connection with
any proceeding involving such person by reason of his being a Corporate Agent, other than a proceeding by or in the right of the corporation,
if such person acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the corporation
and, with respect to any criminal proceeding, such person had no reasonable cause to believe his conduct was unlawful.
In
the case of an action brought by or in the right of the corporation, indemnification of a Corporate Agent is permitted if such person
acted in good faith and in a manner such person reasonably believed to be in or not opposed to the best interests of the corporation.
However, no indemnification is permitted in respect of any claim, issue or matter as to which such person shall have been adjudged to
be liable to the corporation, unless and only to the extent that the court in which such proceeding was brought shall determine upon
application that despite the adjudication of liability, but in view of all the circumstances of the case, such person is fairly and reasonably
entitled to such indemnification.
To
the extent that a Corporate Agent has been successful on the merits or otherwise in the defense of such proceeding, whether or not by
or in the right of the corporation, or in the defense of any claim, issue or matter therein, the corporation is required to indemnify
such person for expenses in connection therewith. Under the DGCL, the corporation may advance expenses incurred by a Corporate Agent
in connection with a proceeding, provided that the Corporate Agent undertakes to repay such amount if it shall ultimately be determined
that such person is not entitled to indemnification. Our certificate of incorporation requires us to advance expenses to any person entitled
to indemnification, provided that such person undertakes to repay the advancement if it is determined in a final judicial decision from
which there is no appeal that such person is not entitled to indemnification.
The
power to indemnify and advance the expenses under the DGCL does not exclude other rights to which a Corporate Agent may be entitled to
under our certificate of incorporation, by laws, agreement, vote of stockholders or disinterested directors or otherwise.
Our
bylaws permit us to secure insurance on behalf of our directors, officers, employees and agents for any expense, liability or loss incurred
in such capacities, whether or not the Company would have the power to indemnify such person against such liability under the provisions
of the DGCL.
The
purpose of these provisions is to assist us in retaining qualified individuals to serve as our directors, officers, employees and agents
by limiting their exposure to personal liability for serving as such.
Item
16. Exhibits
The
exhibits to this registration statement are listed in the Exhibit Index to this registration statement, which Exhibit Index is hereby
incorporated 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% change in the maximum aggregate offering price set forth in the fee table in the effective registration
statement; and
(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) 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 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, 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)
That, for purposes of determining any liability under the Securities Act:
(i) the
information omitted from the form of prospectus filed as part of the registration statement in reliance upon Rule 430A and contained
in the form of prospectus filed by the registrant pursuant to Rule 424(b)(1) or (4) or 497(h) under the Securities Act shall be deemed
to be part of the registration statement as of the time it was declared effective; and
(ii) each
post-effective amendment that contains a form of prospectus 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 that, for purposes of determining any liability under the Securities Act of 1933, each filing
of the registrant’s 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 plan’s 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.
(d) Insofar
as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons
of the registrant, the registrant has been advised that in the opinion of the Securities and Exchange 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.
(e) 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, or the Act, in accordance with the rules and regulations prescribed by
the Commission under section 305(b)(2) of the Act.
EXHIBIT
INDEX
| EXHIBIT
NO. |
|
DESCRIPTION |
| |
|
|
| 1.1** |
|
Form
of Underwriting Agreement |
| |
|
|
| 1.2 |
|
At the Market Offering Agreement, dated May 25, 2022 by and between Celsion Corporation and H.C. Wainwright & Co. LLC, incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K of the Company, filed on May 25, 2022, (SEC File NO. 001-15911). |
| |
|
|
| 1.3* |
|
Amendment No. 1, dated May 15, 2024, to At the Market Offering Agreement, by and between Imunon, Inc. and H.C. Wainwright & Co. LLC |
| |
|
|
| 3.1 |
|
Amended and Restated Certificate of Incorporation of Imunon, dated March 24, 2023, incorporated herein by reference to Exhibit 3.1 to the Current Report on Form 8-K of the Company filed on March 24, 2023 (SEC File No. 001-15911). |
| |
|
|
| 3.2 |
|
Amended and Restated Bylaws of Imunon, effective on March 15, 2024, incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K of the Company, filed on March 18, 2024 (SEC File No. 001-15911). |
| |
|
|
| 4.1 |
|
Form of Representative’s Common Stock Purchase Warrant, incorporated herein by reference to Exhibit 4.2 to the Current Report on Form 8-K of the Company, filed on October 31, 2017 (SEC File No. 001-15911). |
| |
|
|
| 4.2 |
|
Form of Placement Agent Common Stock Purchase Warrant incorporated herein by reference to Exhibit 4.4 to the Current Report on Form 8-K of the Company, filed on July 11, 2017 (SEC File No. 001-15911). |
| |
|
|
| 4.3 |
|
Form of Amended and Restated Warrant (issued under First Amendment of Venture Loan and Security Agreement, dated as of August 1, 2020, by and among Imunon, Inc., Horizon Funding I, LLC, Horizon Funding Trust 2019-1, and Horizon Technology Finance Corporation, as Collateral Agent), incorporated herein by reference to Exhibit 4.1 to the Current Report on Form 8-K of the Company, filed on September 4, 2020 (SEC File No. 001-15911). |
| |
|
|
| 4.4 |
|
Form
of Exchange Warrant, incorporated herein by reference to Exhibit 4.1 to the Current Report on Form 8-K of the Company, filed on March
13, 2020 (SEC File No. 001-15911).1 |
| |
|
|
| 4.5 |
|
Warrant to purchase Shares of Common Stock of Celsion Corporation between Celsion Corporation and EGWU, Inc., dated March 28, 2019, incorporated herein by reference to Exhibit 4.1 to the Quarterly Report on Form 10-Q of the Company for the quarter ended March 31, 2019 (SEC File No. 001-15911). |
| |
|
|
| 4.6* |
|
Form of Indenture. |
| |
|
|
| 4.7** |
|
Form
of Senior Debt Security. |
| |
|
|
| 4.8** |
|
Form
of Subordinated Debt Security. |
| |
|
|
| 4.9** |
|
Specimen
Preferred Stock Certificate and Form of Certificate of Designation of Preferred Stock. |
| |
|
|
| 4.10** |
|
Form
of Warrant and Warrant Agreement |
| |
|
|
| 4.11** |
|
Form
of Rights Agreement and Right Certificate. |
| |
|
|
| 4.12** |
|
Form
of Unit Agreement and Unit. |
| |
|
|
| 5.1* |
|
Opinion of Covington & Burling LLP |
| |
|
|
| 5.2* |
|
Opinion of Covington & Burling LLP |
| |
|
|
| 23.1* |
|
Consent of Independent Registered Public Accounting Firm. |
| |
|
|
| 23.2* |
|
Consent of Covington & Burling LLP (contained in Exhibit 5.1 hereto). |
| |
|
|
| 23.3* |
|
Consent of Covington & Burling LLP (contained in Exhibit 5.2 hereto). |
| |
|
|
| 24.1* |
|
Powers of Attorney (included in the signature page of this registration statement). |
| |
|
|
| 25.1*** |
|
Statement
of Eligibility of Trustee under the Indenture on Form T-1 to be filed separately pursuant to Section 305(b)(2) of the Trust Indenture
Act of 1939. |
| |
|
|
| 107* |
|
Filing Fee Table |
*
Filed herewith.
**
To be subsequently filed, if applicable, by an amendment to this registration statement or by a current report on Form 8-K.
***
To be filed pursuant to Section 305(b)(2) of the Trust Indenture Act of 1939 at the time of an offering of debt securities.
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 Lawrenceville, State of New Jersey, on the 15th day of May, 2024.
| |
IMUNON,
INC. |
| |
|
|
| |
By: |
/s/
Michael Tardugno |
| |
|
Michael
Tardugno
Executive
Chairman of the Board |
POWER
OF ATTORNEY
KNOW
ALL BY THESE PRESENTS, that each person whose signature appears below constitutes and appoints Michael Tardugno and Jeffrey W. Church,
and each of them, as his or her true and lawful attorneys-in-fact and agents, each with the full power of substitution and resubstitution,
for him or her and in his or her name, place or stead, in any and all capacities, to (i) act on, sign and file with the Securities and
Exchange Commission any and all amendments (including post-effective amendments) to this registration statement together with all schedules
and exhibits thereto and any subsequent registration statement filed pursuant to Rule 462(b) under the Securities Act, together with
all schedules and exhibits thereto, (ii) act on, sign and file such certificates, instruments, agreements and other documents as may
be necessary or appropriate in connection therewith, (iii) act on and file any supplement to any prospectus included in this registration
statement or any such amendment or any subsequent registration statement filed pursuant to Rule 462(b) under the Securities Act, and
(iv) take any and all actions which may be necessary or appropriate to be done, as fully for all intents and purposes as he or she might
or could do in person, hereby ratifying and confirming all that said attorney-in-fact and agent, or his substitute or substitutes, may
lawfully do or cause to be done by virtue hereof.
Pursuant
to the requirements of the Securities Act, this registration statement has been signed by the following persons in the capacities and
on the dates indicated.
| Name |
|
Position |
|
Date |
| |
|
|
|
|
| /s/
Stacy Lindborg |
|
President
and Chief Executive Officer |
|
May
15, 2024 |
| Stacy
Lindborg, Ph. D. |
|
(Principal Executive Officer) |
|
|
| |
|
|
|
|
| /s/
Jeffrey W. Church |
|
Executive
Vice President, Chief |
|
May
15, 2024 |
| Jeffrey
W. Church |
|
Financial
Officer and Corporate Secretary (Principal Financial and Accounting Officer) |
|
|
| |
|
|
|
|
| /s/
Donald Braun |
|
Director |
|
May
15, 2024 |
| Donald
Braun, Ph.D. |
|
|
|
|
| |
|
|
|
|
| /s/
James E. Dentzer |
|
Director |
|
May
15, 2024 |
| James
E. Dentzer |
|
|
|
|
| |
|
|
|
|
| /s/
Frederick J. Fritz |
|
Director |
|
May
15, 2024 |
| Frederick
J. Fritz |
|
|
|
|
| |
|
|
|
|
| /s/
Christine Pellizzari |
|
Director |
|
May
15, 2024 |
| Christine
Pellizzari, J.D. |
|
|
|
|
| |
|
|
|
|
| /s/
Michael H. Tardugno |
|
Director |
|
May
15, 2024 |
| Michael
H. Tardugno |
|
|
|
|
Exhibit
1.3
May
15, 2024
Imunon,
Inc.
997
Lenox Drive, Suite 100,
Lawrenceville,
NJ 08648
Attention:
Jeffrey Church, Chief Financial Officer
Re:
Amendment No. 1 to At The Market Offering Agreement
Dear
Mr. Church:
Reference
is made to the At The Market Offering Agreement, dated as of May 25, 2022 (the “ATM Agreement”), between Imunon, Inc.
(f/k/a Celsion Corporation) (the “Company”) and H.C. Wainwright & Co., LLC (“Wainwright”).
This Amendment No. 1 to the ATM Agreement (this “Amendment”) constitutes an agreement between the Company and Wainwright
to amend the ATM Agreement as set forth herein. Defined terms that are used but not defined herein shall have the meanings ascribed to
such terms in the ATM Agreement.
1.
The defined term “Agreement” in the ATM Agreement is hereby amended to mean the ATM Agreement as amended by this Amendment.
2.
The defined term “Company” in the ATM Agreement is hereby amended by deleting “Celsion Corporation” and inserting
in its place “Imunon, Inc.,” and any references to the trading symbol “CLSN” are replaced with the trading symbol
“IMNN.”
3.
The second paragraph of Section 1 of the ATM Agreement is hereby amended and restated in its entirety as follows:
“The
Company has filed or will file, in accordance with the provisions of the Securities Act of 1933, as amended and the rules and regulations
thereunder (the “Securities Act”), with the Securities and Exchange Commission (the “Commission”)
a registration statement on Form S-3, including a base prospectus, relating to certain securities, including the Common Stock to be issued
from time to time by the Company, and which incorporates by reference documents that the Company has filed or will file in accordance
with the provisions of the Securities Exchange Act of 1934, as amended and the rules and regulations thereunder (the “Exchange
Act”). The Company has prepared a prospectus included as part of the registration statement, which prospectus specifically
relates to the Placement Shares (the “Sales Prospectus”). The Company will furnish to the Agent, for use by the Agent, copies
of the Sales Prospectus included as part of such registration statement, relating to the Placement Shares to be issued from time to time
by the Company. Except where the context otherwise requires, such registration statement, any post-effective amendment thereto, including
all documents filed as part thereof or incorporated by reference therein, and including any information contained in a Prospectus (as
defined below) subsequently filed with the Commission pursuant to Rule 424(b) under the Securities Act or deemed to be a part of such
registration statement pursuant to Rule 430B of the Securities Act, or any subsequent registration statement on Form S-3 filed pursuant
to Rule 415(a)(6) under the Securities Act by the Company to cover any Placement Shares, is herein called the is herein called the “Registration
Statement.” The Sales Prospectus, including all documents incorporated therein by reference, to the extent such information has
not been superseded or modified in accordance with Rule 412 under the Securities Act (as qualified by Rule 430B(g) of the Securities
Act), included in the Registration Statement, as it may be supplemented, if necessary, by one or more prospectus supplements, in the
form in which such prospectus and/or Sales Prospectus have most recently been filed by the Company with the Commission pursuant to Rule
424(b) under the Securities Act, together with the then issued Issuer Free Writing Prospectus(es) (as defined below), is herein called
the “Prospectus.” Any reference herein to the Registration Statement, the Prospectus or any amendment or supplement thereto
shall be deemed to refer to and include the documents incorporated by reference therein, and any reference herein to the terms “amend,”
“amendment” or “supplement” with respect to the Registration Statement or the Prospectus shall be deemed to refer
to and include the filing after the execution hereof of any document with the Commission deemed to be incorporated by reference therein.”
4.
The defined term “Prospectus Supplement” in the ATM Agreement is hereby replaced in all instances with “Sales Prospectus.”
5.
The second, third and fourth sentences of Section 6(a) in the ATM Agreement are hereby amended and restated as follows:
“The
Registration Statement has been or will be filed with the Commission, and prior to the delivery of any Placement Notice, shall have been
declared effective by the Commission under the Securities Act. The Sales Prospectus will name the Agent as the agent in the section entitled
“Plan of Distribution.” The Company shall not have received any order or notice from the Commission preventing or suspending
the use of the Registration Statement or threatening or instituting proceedings for that purpose.”
6.
The first sentence of Section 7(m) is amended and restated as follows:
“(m)
Legal Opinion. On or prior to the date of the first Placement Notice given hereunder, the Company shall cause to be furnished
to the Agent a written opinion and a negative assurance letter of counsel for the Company (“Company Counsel”), each in form
and substance reasonably satisfactory to the Agent.”
7.
The first sentence of Section 7(n) is amended and restated as follows:
“(n)
Comfort Letter. On or prior to the date of the first Placement Notice given hereunder and within five (5) Trading Days after each
subsequent Representation Date, other than pursuant to Section 7(l)(iii), the Company shall cause its independent accountants to furnish
the Agent letters (the “Comfort Letter”), dated the date the Comfort Letter is delivered, which shall meet the requirements
set forth in this Section 7(n), provided that, if the Agent reasonably requests a Comfort Letter in connection with a Representation
Date pursuant to Section 7(l)(iii), upon such request, a Comfort Letter shall be deliverable to the Agent hereunder.”
8.
Except as expressly set forth herein, all of the terms and conditions of the ATM Agreement shall continue in full force and effect after
the execution of this Amendment and shall not be in any way be changed, modified or superseded by the terms set forth herein.
9.
This Amendment may be executed in two or more counterparts and by facsimile or “.pdf” signature or otherwise, and each of
such counterparts shall be deemed an original and all of such counterparts together shall constitute one and the same agreement.
[remainder
of page intentionally left blank]
In
acknowledgment that the foregoing correctly sets forth the understanding reached by the Company and Wainwright, please sign in the space
provided below, whereupon this Amendment shall constitute a binding amendment to the ATM Agreement as of the date indicated above.
| |
Very
truly yours, |
| |
|
| |
H.C.
WAINWRIGHT & CO., LLC |
| |
|
|
| |
By: |
/s/
Mark W. Viklund |
| |
Name: |
Mark W. Viklund |
| |
Title: |
Chief
Executive Officer |
| Accepted and Agreed: |
|
| |
|
| Imunon, Inc. |
|
| |
|
|
| By: |
/s/
Jeffrey Church |
|
| Name: |
Jeffrey Church |
|
| Title: |
Chief Financial Officer |
|
[signature
page to IMNN Amendment to atm agreement]
Exhibit 4.6
CELSION CORPORATION
and
[NAME OF TRUSTEE], as Trustee
INDENTURE
Dated
as of _________, 202__
CROSS-REFERENCE TABLE
| |
|
|
|
|
|
TIA
Section |
|
|
|
Indenture
Section |
|
310 |
|
(a)(1) |
|
7.10 |
| |
|
(a)(2) |
|
7.10 |
| |
|
(a)(3) |
|
N.A. |
| |
|
(a)(4) |
|
N.A. |
| |
|
(a)(5) |
|
7.10 |
| |
|
(b) |
|
7.08; 7.10 |
| |
|
(b)(1) |
|
7.10 |
|
311 |
|
(a) |
|
N.A. |
| |
|
(b) |
|
7.11 |
| |
|
(c) |
|
7.11 |
|
312 |
|
(a) |
|
N.A. |
| |
|
(b) |
|
2.06 |
| |
|
(c) |
|
10.03 |
|
313 |
|
(a) |
|
10.03 |
| |
|
(b) |
|
7.06 |
| |
|
(b)(1) |
|
7.08 |
| |
|
(b)(2) |
|
N.A. |
| |
|
(c) |
|
7.06 |
| |
|
(d) |
|
7.06 |
|
314 |
|
(a) |
|
4.08; 10.04 |
| |
|
(b) |
|
N.A. |
| |
|
(c)(1) |
|
10.04 |
| |
|
(c)(2) |
|
10.04 |
| |
|
(c)(3) |
|
N.A. |
| |
|
(d) |
|
N.A. |
| |
|
(e) |
|
10.05 |
| |
|
(f) |
|
N.A. |
|
315 |
|
(a) |
|
7.01(b) |
| |
|
(b) |
|
7.05 |
| |
|
(c) |
|
7.01(a) |
| |
|
(d) |
|
7.01(c) |
| |
|
(e) |
|
6.12 |
|
316 |
|
(a) (last sentence) |
|
2.10 |
| |
|
(a)(1)(A) |
|
6.05 |
| |
|
(a)(1)(B) |
|
6.04 |
| |
|
(a)(2) |
|
N.A. |
| |
|
(b) |
|
6.08 |
| |
|
(c) |
|
8.04 |
|
317 |
|
(a)(1) |
|
6.09 |
| |
|
(a)(2) |
|
6.10 |
| |
|
(b) |
|
2.05; 7.12 |
|
318 |
|
(a) |
|
10.01 |
N.A. means Not Applicable
Note: This Cross-Reference Table shall not, for any purpose, be deemed to be a part of this Indenture
TABLE OF CONTENTS
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ARTICLE ONE DEFINITIONS AND INCORPORATION BY REFERENCE |
1 |
| |
|
|
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SECTION 1.01. |
Definitions. |
1 |
|
SECTION 1.02. |
Other Definitions. |
6 |
|
SECTION 1.03. |
Incorporation by Reference of TIA. |
6 |
|
SECTION 1.04. |
Rules of Construction. |
7 |
| |
|
|
ARTICLE TWO THE SECURITIES |
7 |
| |
|
|
|
SECTION 2.01. |
Series of Securities; Amount Unlimited. |
7 |
|
SECTION 2.02. |
Form. |
10 |
|
SECTION 2.03. |
Execution and Authentication. |
10 |
|
SECTION 2.04. |
Registrar and Paying Agent. |
12 |
|
SECTION 2.05. |
Paying Agent To Hold Money in Trust. |
12 |
|
SECTION 2.06. |
Holder Lists. |
12 |
|
SECTION 2.07. |
Transfer and Exchange. |
13 |
|
SECTION 2.08. |
Replacement Securities. |
13 |
|
SECTION 2.09. |
Outstanding Securities. |
14 |
|
SECTION 2.10. |
Treasury Securities. |
14 |
|
SECTION 2.11. |
Temporary Securities. |
14 |
|
SECTION 2.12. |
Cancellation. |
15 |
|
SECTION 2.13. |
Defaulted Interest. |
15 |
|
SECTION 2.14. |
CUSIP Number. |
15 |
|
SECTION 2.15. |
Deposit of Moneys. |
15 |
|
SECTION 2.16. |
Book-Entry Provisions for Global Securities. |
16 |
|
SECTION 2.17. |
Legend for Global Security. |
17 |
|
SECTION 2.18. |
Computation of Interest. |
17 |
|
SECTION 2.19. |
Record Dates. |
17 |
| |
|
|
ARTICLE THREE REDEMPTION |
19 |
| |
|
|
|
SECTION 3.01. |
Applicability of Article. |
19 |
|
SECTION 3.02. |
Election To Redeem; Notices to Trustee. |
19 |
|
SECTION 3.03. |
Selection by Trustee of Securities To Be Redeemed. |
19 |
|
SECTION 3.04. |
Notice of Redemption. |
19 |
|
SECTION 3.05. |
Effect of Notice of Redemption. |
20 |
|
SECTION 3.06. |
Deposit of Redemption Price. |
21 |
|
SECTION 3.07. |
Securities Redeemed in Part. |
21 |
|
SECTION 3.08. |
Mandatory Redemption. |
21 |
| |
|
|
ARTICLE FOUR COVENANTS |
21 |
| |
|
|
|
SECTION 4.01. |
Payment of Principal, Premium and Interest. |
21 |
|
SECTION 4.02. |
Maintenance of Office or Agency. |
22 |
|
SECTION 4.03. |
Money for Securities Payments To Be Held in Trust. |
22 |
|
SECTION 4.04. |
Corporate Existence. |
23 |
|
SECTION 4.05. |
Payment of Taxes and Other Claims. |
23 |
|
SECTION 4.06. |
Restrictions on Secured Debt. |
23 |
|
SECTION 4.07. |
Restrictions on Sale and Lease-Back Transactions. |
25 |
|
SECTION 4.08. |
Reports to Holders. |
26 |
|
SECTION 4.09. |
Statement by Officers as to Default. |
27 |
|
SECTION 4.10. |
Waiver of Certain Covenants. |
27 |
| |
|
|
ARTICLE FIVE SUCCESSOR CORPORATION |
27 |
| |
|
|
|
SECTION 5.01. |
Consolidation, Merger and Sale of Assets. |
27 |
| |
|
|
ARTICLE SIX DEFAULTS AND REMEDIES |
28 |
| |
|
|
|
SECTION 6.01. |
Events of Default. |
28 |
|
SECTION 6.02. |
Acceleration of Maturity; Rescission. |
29 |
|
SECTION 6.03. |
Other Remedies. |
30 |
|
SECTION 6.04. |
Waiver of Past Defaults and Events of Default. |
30 |
|
SECTION 6.05. |
Control by Majority. |
31 |
|
SECTION 6.06. |
Limitation on Suits. |
31 |
|
SECTION 6.07. |
No Personal Liability of Directors, Officers, Employees and Stockholders. |
31 |
|
SECTION 6.08. |
Rights of Holders To Receive Payment. |
32 |
|
SECTION 6.09. |
Collection Suit by Trustee. |
32 |
|
SECTION 6.10. |
Trustee May File Proofs of Claim. |
32 |
|
SECTION 6.11. |
Priorities. |
33 |
|
SECTION 6.12. |
Undertaking for Costs. |
33 |
|
SECTION 6.13. |
Waiver of Stay or Extension Laws. |
33 |
| |
|
|
ARTICLE SEVEN TRUSTEE |
33 |
| |
|
|
|
SECTION 7.01. |
Duties of Trustee. |
33 |
|
SECTION 7.02. |
Rights of Trustee. |
35 |
|
SECTION 7.03. |
Individual Rights of Trustee. |
36 |
|
SECTION 7.04. |
Trustee’s Disclaimer. |
36 |
|
SECTION 7.05. |
Notice of Defaults. |
36 |
|
SECTION 7.06. |
Reports by Trustee to Holders. |
36 |
|
SECTION 7.07. |
Compensation and Indemnity. |
37 |
|
SECTION 7.08. |
Replacement of Trustee. |
38 |
|
SECTION 7.09. |
Successor Trustee by Consolidation, Merger, etc. |
39 |
|
SECTION 7.10. |
Eligibility; Disqualification. |
40 |
|
SECTION 7.11. |
Preferential Collection of Claims Against Company. |
40 |
| |
|
|
ARTICLE EIGHT AMENDMENT AND WAIVER |
40 |
| |
|
|
|
SECTION 8.01. |
Without Consent of Holders. |
40 |
|
SECTION 8.02. |
With Consent of Holders. |
41 |
|
SECTION 8.03. |
Compliance with TIA. |
42 |
|
SECTION 8.04. |
Revocation and Effect of Consents. |
42 |
|
SECTION 8.05. |
Notation on or Exchange of Securities. |
42 |
|
SECTION 8.06. |
Trustee To Sign Amendments, etc. |
42 |
| |
|
|
ARTICLE NINE DISCHARGE OF INDENTURE; DEFEASANCE |
43 |
| |
|
|
|
SECTION 9.01. |
Discharge of Liability on Securities; Defeasance. |
43 |
|
SECTION 9.02. |
Conditions to Defeasance. |
44 |
|
SECTION 9.03. |
Deposited Money and Government Obligations To Be Held in Trust; Other Miscellaneous Provisions. |
45 |
|
SECTION 9.04. |
Reinstatement. |
46 |
|
SECTION 9.05. |
Moneys Held by Paying Agent. |
46 |
|
SECTION 9.06. |
Moneys Held by Trustee. |
46 |
| |
|
|
ARTICLE TEN MISCELLANEOUS |
47 |
| |
|
|
|
SECTION 10.01. |
TIA Controls. |
47 |
|
SECTION 10.02. |
Notices. |
47 |
|
SECTION 10.03. |
Communications by Holders with Other Holders. |
48 |
|
SECTION 10.04. |
Certificate and Opinion as to Conditions Precedent. |
48 |
|
SECTION 10.05. |
Statements Required in Certificate and Opinion. |
48 |
|
SECTION 10.06. |
Form of Documents Delivered to Trustee. |
49 |
|
SECTION 10.07. |
Rules by Trustee and Agents. |
49 |
|
SECTION 10.08. |
Legal Holidays. |
49 |
|
SECTION 10.09. |
Governing Law. |
49 |
|
SECTION 10.10. |
No Adverse Interpretation of Other Agreements. |
50 |
|
SECTION 10.11. |
Successors. |
50 |
|
SECTION 10.12. |
Benefits of Indenture. |
50 |
|
SECTION 10.13. |
Multiple Counterparts. |
50 |
|
SECTION 10.14. |
Table of Contents, Headings, etc. |
50 |
|
SECTION 10.15. |
Separability. |
50 |
INDENTURE,
dated as of _________ _____, 202___ between Celsion Corporation, a Delaware corporation, as issuer (the “Company”)
and [Name of Trustee], a [national banking association], as trustee (the “Trustee”).
The Company has duly authorized the execution and delivery of this Indenture to provide for the issuance from time to time of its unsecured senior debentures or notes or other evidences of indebtedness (hereinafter called “Securities”) to be issued in one or more series as provided in and in accordance with this Indenture.
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.
ARTICLE ONE
DEFINITIONS AND INCORPORATION BY REFERENCE
SECTION 1.01. Definitions.
“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” when used with respect to any specified Person means the power to direct the management and policies of such Person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise; and the terms “controlling” and “controlled” have meanings correlative to the foregoing.
“Agent” means any Registrar, Paying Agent or agent for service or notices and demands.
“amend” means amend, modify, supplement, restate or amend and restate, including successively; “amending” and “amended” have correlative meanings; and “amendment” means amendment, modification, supplement, restatement or amendment and restatement.
“Attributable Debt” in respect of a Sale and Lease-Back Transaction means, as of any particular time, the present value (discounted at the rate of interest implicit in the terms of the lease involved in such Sale and Lease-Back Transaction, as determined in good faith by the Company) of the obligation of the lessee thereunder for rental payments (excluding, however, any amounts required to be paid by such lessee, whether or not designated as rent or additional rent, on account of maintenance and repairs, insurance, taxes, assessments, water rates or similar charges or any amounts required to be paid by such lessee thereunder contingent upon the amount of sales, maintenance and repairs, insurance, taxes, assessments, water rates or similar charges) during the remaining term of such lease (including any period for which such lease has been extended or may, at the option of the lessor, be extended).
“Bankruptcy Law” means Title 11, United States Code, or any similar U.S. Federal or state law or law of any other jurisdiction relating to bankruptcy, insolvency, winding-up, liquidation, reorganization or relief of debtors.
“Board of Directors” means either the board of directors of the Company or any duly authorized committee of that board.
“Board Resolution” means a copy of a resolution certified by the Secretary or an Assistant Secretary of the Company to have been duly adopted by the Board of Directors and to be in full force and effect on the date of such certification, and delivered to the Trustee.
“Business Day” means, unless otherwise provided with respect to a series of Securities, any day other than a Legal Holiday.
“capital stock” or “stock” means:
(i) in the case of a corporation, corporate stock or shares;
(ii) in the case of a partnership or limited liability company, partnership interests (whether general or limited) or membership interests;
(iii) in the case of an association or business entity (other than as provided in clauses (i) and (ii) above), shares, interests, participations, rights or other equivalents (however designated) similar to corporate stock; and
(iv) any other interest or participation that confers on a Person the right to receive a share of the profit and losses of, or distribution of assets of, the issuing Person.
“Commission” means the U.S. Securities and Exchange Commission, as from time to time constituted, created under the Exchange Act or, if at any time after the execution and delivery of this Indenture such Commission is not existing and performing the duties now assigned to it under the TIA, then the body performing such duties at such time.
“Company” means the party named as such in the first paragraph of this Indenture, until a successor replaces such party pursuant to Article Five and thereafter means the successor.
“Company Order” means a written request or order signed in the name of the Company by its Chairman of the Board, its President or a Vice President, and by its Treasurer, an Assistant Treasurer, its Controller, an Assistant Controller, its Secretary or an Assistant Secretary, and delivered to the Trustee.
“Consolidated Net Tangible Assets” means, as of any particular time, the total amount of assets (less applicable reserves) after deducting therefrom (a) all current liabilities (excluding any thereof which are by their terms extendible or renewable at the option of the obligor thereon to a time more than 12 months after the time as of which the amount thereof is being computed and excluding current maturities of long-term indebtedness), and (b) all goodwill, trade names, trademarks, patents, unamortized debt discount and expense and other like intangible assets, all as shown in the audited consolidated balance sheet of the Company and subsidiaries contained in the Company’s then most recent annual report to stockholders, except that assets shall include an amount equal to the Attributable Debt in respect of any Sale and Lease-Back Transaction not capitalized on such balance sheet.
“Corporate Trust Office” means the principal office of the Trustee at which at any time this Indenture shall be administered, which office at the date hereof is located at , Attention: , or such other address as the Trustee may designate from time to time by notice to the Holders and the Company, or the principal corporate trust office of any successor Trustee (or such other address as such successor Trustee may designate from time to time by notice to the Holders and the Company).
“corporation” includes corporations, associations, companies (including any limited liability company), business and statutory trusts and limited partnerships.
“Custodian” means any receiver, interim receiver, receiver and manager, trustee, assignee, liquidator, custodian or similar official under any Bankruptcy Law.
“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 issued in the form of one or more Global Securities, The Depository Trust Company or another Person designated as Depository by the Company, which Person must be a clearing agency registered under the Exchange Act that is designated to act as Depository for such Securities as contemplated by Section 2.01.
“Exchange Act” means the U.S. Securities Exchange Act of 1934, as amended.
“GAAP” means generally accepted accounting principles in the United States of America as in effect from time to time.
“Global Security” means a Security that evidences all or part of the Securities of any series and bears the legend set forth in Section 2.17 (or such legend as may be specified as contemplated by Section 2.01 for such Securities).
“Government Obligations” means securities that 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, which, in either case under clauses (i) or (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 Government Obligation or a specific payment of interest on or principal of any such 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 Government Obligation or the specific payment of interest on or principal of the Government Obligation evidenced by such depository receipt.
“Holder” means the Person in whose name a Security is registered in the register maintained by the Registrar pursuant to Section 2.04.
“Indenture” means this Indenture as amended, restated or supplemented from time to time, including, for all purposes of this instrument, the provisions of the TIA that are deemed to be a part of and govern this instrument and any supplemental indenture, respectively. The term “Indenture” shall also include the terms of a particular series of Securities established as contemplated by Section 2.01.
“interest” means, with respect to the Securities, interest on the Securities.
“Interest Payment Date” means, when used with respect to any Security, the Stated Maturity of an installment of interest on such Security.
“Legal Holiday” means a Saturday, a Sunday or other day on which commercial banking institutions in New York City are authorized or required by law to close.
“Maturity
Date” means, when used with respect to any Security, the date on which the principal amount of such Security becomes
due and payable as therein or herein provided, whether at the Stated Maturity or by declaration of acceleration, call for redemption
or otherwise.
“Officer” means the Chief Executive Officer, the President, the Chief Financial Officer, any Vice President, the Treasurer or the Secretary of the specified Person.
“Officers’ Certificate” means a certificate signed by the Chairman of the Board, the Chief Executive Officer, the President or a Vice President, and by the Treasurer, an Assistant Treasurer, the Controller, an Assistant Controller, the Secretary or an Assistant Secretary, of the Company, and delivered to the Trustee.
“Opinion of Counsel” means a written opinion of counsel, who may be an employee of or counsel for the Company, and who shall be reasonably acceptable to the Trustee.
“Paying Agent” means any Person authorized by the Company to pay the principal of (and premium, if any) or interest on any Securities on behalf of the Company.
“Person” means any individual, corporation, company (including any limited liability company), association, partnership, joint venture, joint-stock company, trust, unincorporated organization, government or any agency or political subdivision thereof or any other entity.
“Physical Securities” means certificated Securities in registered form in substantially the form set forth in Exhibit A-1 or in such form as shall be established by or pursuant to a Board Resolution or in one or more indentures supplemental hereto.
“Place of Payment”, when used with respect to the Securities of any series, means the place or places where the principal of (and premium, if any) and interest on the Securities of such series are payable as specified as contemplated by Section 2.01.
“Principal Property” means any manufacturing plant or manufacturing facility located within the United States of America, having a gross book value in excess of [1]% of Consolidated Net Tangible Assets at the time of determination thereof and owned by the Company or any Restricted Subsidiary, in each case other than (1) any such plant or facility which, in the opinion of the Board of Directors, is not of material importance to the total business conducted by the Company and its Restricted Subsidiaries taken as a whole, or (2) any portion of such plant or facility similarly found not to be of material importance to the use or operation thereof.
“Redemption Date”, when used with respect to any Security to be redeemed, means the date fixed for such redemption pursuant to this Indenture.
“Redemption Price”, when used with respect to any Security to be redeemed, means the price at which it is to be redeemed pursuant to this Indenture.
“Responsible Officer”, when used with respect to the Trustee, means any officer assigned by the Trustee to administer corporate trust matters and any other officer of the Trustee to whom any corporate trust matter is referred because of such officer’s knowledge of and familiarity with the particular subject.
“Restricted Subsidiary” means any Subsidiary (a) substantially all of the property of which is located, or substantially all of the business of which is carried on, within the United States of America (other than its territories or possessions and other than Puerto Rico) and (b) which owns a Principal Property; provided, however, that any Subsidiary which is principally engaged in financing operations outside the United States of America or which is principally engaged in leasing or financing installment receivables shall not be deemed a Restricted Subsidiary for purposes of this Indenture.
“Securities” has the meaning provided in the preamble of this Indenture.
“Securities Act” means the U.S. Securities Act of 1933, as amended.
“Stated Maturity” means (a) with respect to any Security, the date specified in such Security as the fixed date on which the payment of principal of such Security is due and payable, including pursuant to any mandatory redemption provision (but excluding any provision providing for the repurchase of such Security at the option of the Holder thereof upon the happening of any contingency beyond the control of the Company unless such contingency has occurred) and (b) with respect to any scheduled installment of principal of or interest on any Security, the date specified in such Security as the fixed date on which such installment is due and payable.
“Subsidiary” means a corporation more than 50% of the outstanding voting stock of which is owned, directly or indirectly, by the Company or by one or more other Subsidiaries, or by the Company and one or more other Subsidiaries. For the purposes of this definition, “voting stock” means stock which ordinarily has voting power for the election of directors, whether at all times or only so long as no senior class of stock has such voting power by reason of any contingency.
“TIA” means the Trust Indenture Act of 1939 (15 U.S. Code §§77aaa-77bbbb) as in effect on the date of this Indenture, except as provided in Section 8.03.
“Trustee” means the party named as such in this Indenture until a successor replaces it pursuant to this Indenture and thereafter means the successor, and, if at any time there is more than one Person, “Trustee”, as used with respect to the Securities of any series, shall mean the Trustee with respect to Securities of such series.
SECTION 1.02. Other Definitions.
The definitions of the following terms can be found in the sections indicated as follows:
| |
|
|
|
Term |
|
Defined in Section |
|
“Agent Members” |
|
2.16 |
|
“Covenant Defeasance” |
|
9.01 |
|
“Expiration Date” |
|
2.19 |
|
“Events of Default” |
|
6.01 |
|
“indebtedness” |
|
4.06 |
|
“Legal Defeasance” |
|
9.01 |
|
“mortgage” |
|
4.06 |
|
“Notice of Default” |
|
6.01 |
|
“Registrar” |
|
2.04 |
|
“Sale and Lease-Back Transaction” |
|
4.07 |
SECTION 1.03. Incorporation by Reference of TIA.
Whenever this Indenture refers to a provision of the TIA, the portion of such provision required to be incorporated herein in order for this Indenture to be qualified under the TIA is incorporated by reference in and made a part of this Indenture. The following TIA terms used in this Indenture have the following meanings:
“indenture securities” means the Securities.
“indenture securityholder” means a Holder.
“indenture to be qualified” means this Indenture.
“obligor on this indenture securities” means the Company or any other obligor on the Securities.
All other terms used in this Indenture that are defined by the TIA, defined in the TIA by reference to another statute or defined by Commission rule have the meanings therein assigned to them.
SECTION 1.04. Rules of Construction.
Unless the context otherwise requires:
(i) a term has the meaning assigned to it herein, whether defined expressly or by reference;
(ii) “or” is not exclusive;
(iii) words in the singular include the plural, and in the plural include the singular;
(iv) words used herein implying any gender shall apply to both genders;
(v) “herein,” “hereof” and other words of similar import refer to this Indenture as a whole and not to any particular Article, Section or subsection;
(vi) unless otherwise specified herein, all accounting terms used herein shall be interpreted, all accounting determinations hereunder shall be made, and all financial statements required to be delivered hereunder shall be prepared, in accordance with GAAP; and
(vii) “$,” “U.S. Dollars” and “United States Dollars” each refer to United States dollars, or such other money of the United States of America that at the time of payment is legal tender for payment of public and private debts.
ARTICLE TWO
THE SECURITIES
SECTION 2.01. Series of Securities; Amount Unlimited.
The aggregate principal amount of Securities which may be authenticated and delivered under this Indenture is unlimited. The Securities may be issued in one or more series. There shall be established in one or more Board Resolutions or pursuant to authority granted by one or more Board Resolutions and, subject to Sections 2.02 and 2.03, set forth in, or determined in the manner provided in, an Officers’ Certificate, or established in one or more indentures supplemental hereto, prior to the issuance of Securities of any series,
(1) the title of the Securities of the series (which shall distinguish the Securities of the series from Securities of any other series);
(2) 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 Sections 2.07, 2.08, 2.11, 3.06 or 8.05, and except for any Securities which, pursuant to Section 2.03, are deemed never to have been authenticated and delivered hereunder);
(3) the Person to whom any interest on a Security of the series shall be payable, if other than the Person in whose name that Security is registered at the close of business on the regular record date for such interest;
(4) the date or dates on which the principal of any Securities of the series is payable;
(5) the rate or rates at which any Securities of the series shall bear interest, if any, the date or dates from which any such interest shall accrue, the Interest Payment Dates on which any such interest shall be payable and the regular record date for any such interest payable on any Interest Payment Date;
(6) the place or places where the principal of and any premium and interest on any Securities of the series shall be payable;
(7) the period or periods within which, the price or prices at which and the terms and conditions upon which any Securities of the series may be redeemed, in whole or in part, at the option of the Company and, if other than by a Board Resolution, the manner in which any election by the Company to redeem the Securities shall be evidenced;
(8) the obligation, if any, of the Company to redeem or purchase any Securities of the series pursuant to any sinking fund or analogous provisions or at the option of the Holder thereof and the period or periods within which, the price or prices at which and the terms and conditions upon which any Securities of the series shall be redeemed or purchased, in whole or in part, pursuant to such obligation;
(9) if other than denominations of $1,000 and any integral multiple thereof, the denominations in which any Securities of the series shall be issuable;
(10) if the amount of principal of or any premium or interest on any Securities of the series may be determined with reference to an index or pursuant to a formula, the manner in which such amounts shall be determined;
(11) if other than the currency of the United States of America, the currency, currencies or currency units in which the principal of or any premium or interest on any Securities of the series shall be payable and the manner of determining the equivalent thereof in the currency of the United States of America for any purpose;
(12) if the principal of or any premium or interest on any Securities of the series is to be payable, at the election of the Company or the Holder thereof, in one or more currencies or currency units other than that or those in which such Securities are stated to be payable, the currency, currencies or currency units in which the principal of or any premium or interest on such Securities as to which such election is made shall be payable, the periods within which and the terms and conditions upon which such election is to be made and the amount so payable (or the manner in which such amount shall be determined);
(13) if other than the entire principal amount thereof, the portion of the principal amount of any Securities of the series which shall be payable upon declaration of acceleration of the maturity of the principal amount thereof pursuant to Section 6.02;
(14) if the principal amount payable at the Stated Maturity of any Securities of the series will not be determinable as of any one or more dates prior to the Stated Maturity, the amount which shall be deemed to be the principal amount of such Securities as of any such date for any purpose thereunder or hereunder, including the principal amount thereof which shall be due and payable upon any date other than the Stated Maturity or which shall be deemed to be outstanding as of any date prior to the Stated Maturity (or, in any such case, the manner in which such amount deemed to be the principal amount shall be determined);
(15) if applicable, that any Securities of the series shall be issuable in whole or in part in the form of one or more Global Securities and, in such case, the respective Depositories for such Global Securities, the form of any legend or legends which shall be borne by any such Global Security in addition to or in lieu of that set forth in Section 2.17 and any circumstances in addition to or in lieu of those set forth in Section 2.16 in which any such Global Security may be exchanged in whole or in part for Securities registered, and any transfer of such Global Security in whole or in part may be registered, in the name or names of Persons other than the Depositary for such Global Security or a nominee thereof;
(16) 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 6.02;
(17) any addition to or change in the covenants set forth in Article Four which applies to Securities of the series; and
(18) any other terms of the series (which terms shall not be inconsistent with the provisions of this Indenture, except as permitted by Section 8.01(viii)).
All Securities of any one series shall be substantially identical except as to denomination and except as may otherwise be provided in or pursuant to the Board Resolution referred to above and (subject to Section 2.03) set forth, or determined in the manner provided, in the Officers’ Certificate referred to above or in any such indenture supplemental hereto.
If any of the terms of the series are established by action taken pursuant to a Board Resolution, a copy of an appropriate record of such action shall be certified by the Secretary or an Assistant Secretary of the Company and delivered to the Trustee at or prior to the delivery of the Officers’ Certificate setting forth the terms of the series.
The Securities shall be general unsecured senior obligations of the Company and will rank equally with all other unsecured senior indebtedness of the Company from time to time outstanding.
SECTION 2.02. Form.
The Securities and the Trustee’s certificate of authentication with respect thereto shall be substantially in the form set forth in Exhibit A-1, which is incorporated in and forms a part of this Indenture, or such form established by one or more Board Resolutions adopted with respect to such series or in one or more indentures supplemental hereto, in each case with such appropriate insertions, omissions, substitutions and other variations as are required or permitted by this Indenture, and may have such letters, numbers or other marks of identification and such legends or endorsements placed thereon as may be required to comply with law or the rules of any securities exchange or Depository therefor or as may, consistently herewith, be determined by the officers executing such Securities, as evidenced by their execution thereof. If the form of Securities of any series is established by action taken pursuant to a Board Resolution, a copy of an appropriate record of such action shall be certified by the Secretary or an Assistant Secretary of the Company and delivered to the Trustee at or prior to the delivery of the Company Order contemplated by Section 2.03 for the authentication and delivery of such Securities.
The Securities shall be issued initially in the form of one or more permanent Global Securities in registered form and deposited with the Trustee, as custodian for the Depository. The aggregate principal amount of any Global Security may from time to time be increased or decreased by adjustments made on the records of the Trustee, as custodian for the Depository.
The terms and provisions contained in the Securities shall constitute, and are expressly made, a part of this Indenture and, to the extent applicable, the Company and the Trustee, by their execution and delivery of this Indenture, expressly agree to such terms and provisions and agree to be bound thereby.
SECTION 2.03. Execution and Authentication.
The Securities shall be executed on behalf of the Company by its Chairman of the Board, Chief Executive Officer, Chief Financial Officer, President or any Vice President. The signature of any of these officers on the Securities may be manual or facsimile.
If an Officer whose signature is on a Security was an Officer at the time of such execution but no longer holds that office at the time the Trustee authenticates the Security, the Security shall be valid nevertheless.
At any time and from time to time after the execution and delivery of this Indenture, the Company may deliver Securities of any series executed by the Company to the Trustee for authentication, together with a Company Order for the authentication and delivery of such Securities, and the Trustee in accordance with the Company Order shall authenticate and deliver such Securities. If the form or terms of the Securities of the series have been established by or pursuant to one or more Board Resolutions as permitted by Sections 2.01 and 2.02, in authenticating such Securities, and accepting the additional responsibilities under this Indenture in relation to such Securities, the Trustee shall be entitled to receive, and (subject to Section 7.01) shall be fully protected in relying upon, an Opinion of Counsel stating:
(1) if the form of such Securities has been established by or pursuant to Board Resolution as permitted by Section 2.02, that such form has been established in conformity with the provisions of this Indenture;
(2) if the terms of such Securities have been established by or pursuant to Board Resolution as permitted by Section 2.01, that such terms have been established in conformity with the provisions of this Indenture; and
(3) that such Securities, when authenticated and delivered by the Trustee and issued by the Company in the manner and subject to any conditions specified in such Opinion of Counsel, will constitute valid and legally binding obligations of the Company enforceable in accordance with their terms, subject to bankruptcy, insolvency, fraudulent transfer, fraudulent conveyance, reorganization, moratorium and similar laws of general applicability relating to or affecting creditors’ rights and to general equity principles.
If such form or terms have been so established, the Trustee shall not be required to authenticate such Securities if the issue of such Securities pursuant to this Indenture will affect the Trustee’s own rights, duties or immunities under the Securities and this Indenture or otherwise in a manner which is not reasonably acceptable to the Trustee.
Notwithstanding the provisions of Section 2.01 and of the second preceding paragraph, if all Securities of any series are not to be originally issued at one time, it shall not be necessary to deliver the Officers’ Certificate otherwise required pursuant to Section 2.01 or the Company Order and Opinion of Counsel otherwise required pursuant to such second preceding paragraph at or prior to the authentication of each Security of such series if such documents are delivered at or prior to the authentication upon original issuance of the first Security of such series to be issued.
Each Security shall be dated the date of its authentication.
No Security shall be entitled to any benefit under this Indenture or be valid or obligatory for any purpose unless there appears on such Security a certificate of authentication substantially in the form provided for herein executed by the Trustee by manual signature, and such certificate upon any Security shall be conclusive evidence, and the only evidence, that such Security has been duly authenticated and delivered hereunder. Notwithstanding the foregoing, if any Security shall have been authenticated and delivered hereunder but never issued and sold by the Company, and the Company shall deliver such Security to the Trustee for cancellation as provided in Section 2.12, for all purposes of this Indenture such Security shall be deemed never to have been authenticated and delivered hereunder and shall never be entitled to the benefits of this Indenture.
The Securities of each series shall be issuable only in registered form without coupons and only in such denominations as shall be specified as contemplated by Section 2.01. In the absence of any such specified denomination with respect to the Securities of any series, the Securities of such series shall be issuable in denominations of $1,000 and any integral multiple thereof.
SECTION 2.04. Registrar and Paying Agent.
The Company shall cause to be kept at the Corporate Trust Office a register in which, subject to such reasonable regulations as it may prescribe, the Company shall provide for the registration of the Securities and of their transfer and exchange. The Trustee is hereby appointed “Registrar” for purposes of maintaining such register.
The Company shall maintain an office or agency where Securities may be presented for payment and an office or agency where notices and demands to or upon the Company, if any, in respect of the Securities and this Indenture may be served. The Company may have one or more Paying Agents.
The Company initially appoints the Trustee as Paying Agent and Agent for service of notices and demands in connection with the Securities and this Indenture. The Company may change the Paying Agent without prior notice to the Holders. The Company or any of its Subsidiaries may act as Paying Agent.
The Company shall enter into an appropriate agency agreement, which shall incorporate the provisions of the TIA, with any Agent that is not a party to this Indenture. The agreement shall implement the provisions of this Indenture that relate to such Agent. The Company shall notify the Trustee of the name and address of any such Agent. If the Company fails to maintain a Registrar or Paying Agent, or fails to give the foregoing notice, the Trustee shall act as such and shall be entitled to appropriate compensation in accordance with Section 7.07.
SECTION 2.05. Paying Agent To Hold Money in Trust.
Each Paying Agent shall hold in trust for the benefit of the Holders or the Trustee all money held by the Paying Agent for the payment of principal of or premium or interest on the Securities (whether such money has been paid to it by the Company or any other obligor on the Securities), and the Company and the Paying Agent shall notify the Trustee of any default by the Company (or any other obligor on the Securities) in making any such payment. Money held in trust by the Paying Agent need not be segregated except as required by law and in no event shall the Paying Agent be liable for any interest on any money received by it hereunder; provided that if the Company or an Affiliate thereof acts as Paying Agent, it shall segregate the money held by it as Paying Agent and hold it as a separate trust fund. The Company at any time may require the Paying Agent to pay all money held by it to the Trustee and account for any funds disbursed and the Trustee may at any time during the continuance of any Event of Default specified in Section 6.01(1) or (2), upon written request to the Paying Agent, require the Paying Agent to pay forthwith all money so held by it to the Trustee and to account for any funds disbursed. Upon making such payment, the Paying Agent shall have no further liability for the money delivered to the Trustee.
SECTION 2.06. Holder 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 the Holders. If the Trustee is not the Registrar, the Company shall furnish to the Trustee at least five Business Days before each Interest Payment Date for Securities of any series, 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 the Holders of Securities of such series; provided that, as long as the Trustee is the Registrar, no such list need be furnished.
SECTION 2.07. Transfer and Exchange.
Subject to Section 2.16, when Securities of any series are presented to the Registrar with a request from the Holder of such Securities to register a transfer or to exchange them for an equal principal amount of Securities of such series of other authorized denominations, the Registrar shall register the transfer or make the exchange as requested. Every Security presented or surrendered for registration of transfer or exchange shall be duly endorsed or be accompanied by a written instrument of transfer in form satisfactory to the Company and the Registrar, duly executed by the Holder thereof or his attorneys duly authorized in writing. To permit registrations of transfers and exchanges, the Company shall issue and execute and the Trustee shall authenticate new Securities of the same series evidencing such transfer or exchange at the Registrar’s request. No service charge shall be made to the Holder for any registration of transfer or exchange. The Company may require from the Holder payment of a sum sufficient to cover any transfer taxes or other governmental charge that may be imposed in relation to a transfer exchange, but this provision shall not apply to any exchange pursuant to Section 2.11, 3.06 or 8.05 (in which events the Company shall be responsible for the payment of such taxes). The Registrar shall not be required to exchange or register a transfer of any Security for a period of 15 days immediately preceding the redemption of Securities of such series, except the unredeemed portion of any Security being redeemed in part.
Any Holder of a Global Security shall, by acceptance of such Global Security, agree that transfers of the beneficial interests in such Security may be effected only through a book-entry system maintained by the Holder of such Security (or its agent), and that ownership of a beneficial interest in the Global Security shall be required to be reflected in a book entry.
SECTION 2.08. Replacement Securities.
If a mutilated Security is surrendered to the Registrar or the Trustee, or if the Holder of a Security claims that the Security has been lost, destroyed or wrongfully taken, the Company shall issue, and the Trustee shall authenticate, a replacement Security of the same series if the Holder of such Security furnishes to the Company and the Trustee evidence reasonably acceptable to them of the ownership and the destruction, loss or theft of such Security and if the requirements of Section 8-405 of the New York Uniform Commercial Code as in effect on the date of this Indenture are met. If required by the Trustee or the Company, an indemnity bond shall be posted, sufficient in the judgment of all to protect the Company, the Trustee or any Paying Agent from any loss that any of them may suffer if such Security is replaced. The Company may charge such Holder for the Company’s reasonable out-of-pocket expenses in replacing such Security and the Trustee may charge the Company for the Trustee’s expenses (including, without limitation, attorneys’ fees and disbursements) in replacing such Security. Every replacement Security shall constitute a contractual obligation of the Company.
SECTION 2.09. Outstanding Securities.
The Securities outstanding at any time are all Securities that have been authenticated by the Trustee except for (a) those canceled by it, (b) those delivered to it for cancellation, (c) to the extent set forth in Sections 9.01 and 9.02, on or after the date on which the conditions set forth in Section 9.01 or 9.02 have been satisfied, those Securities theretofore authenticated and delivered by the Trustee hereunder and (d) those described in this Section 2.09 as not outstanding. Subject to Section 2.10, a Security does not cease to be outstanding because the Company or one of its Affiliates holds the Security.
If a Security is replaced pursuant to Section 2.08, it ceases to be outstanding unless the Trustee receives proof satisfactory to it that the replaced Security is held by a bona fide purchaser in whose hands such Security is a legal, valid and binding obligation of the Company.
If the Paying Agent holds, in its capacity as such, on any Maturity Date, money sufficient to pay all accrued interest and principal with respect to the Securities payable on that date and is not prohibited from paying such money to the Holders thereof pursuant to the terms of this Indenture, then on and after that date such Securities cease to be outstanding and interest on them ceases to accrue.
SECTION 2.10. Treasury Securities.
In determining whether the Holders of the required principal amount of Securities of any series have concurred in any declaration of acceleration or notice of default or direction, waiver or consent or any amendment to this Indenture, Securities of such series owned by the Company or any Affiliate of the Company shall be disregarded as though they were not outstanding, except that for the purposes of determining whether the Trustee shall be protected in relying on any such direction, waiver or consent or any amendment to this Indenture, only Securities of such series as to which a Responsible Officer of the Trustee has actually received an Officers’ Certificate stating that such Securities are so owned shall be so disregarded. Securities of such series so owned which have been pledged in good faith shall not be disregarded if the pledgee established to the satisfaction of the Trustee the pledgee’s right so to act with respect to such Securities and that the pledgee is not the Company or any other obligor on such Securities or any of their respective Affiliates.
SECTION 2.11. Temporary Securities.
Until definitive Securities of any series are prepared and ready for delivery, the Company may prepare and the Trustee shall authenticate temporary Securities of such series. Temporary Securities shall be substantially in the form of definitive Securities of the same series but may have variations that the Company considers appropriate for temporary Securities.
Without unreasonable delay, the Company shall prepare and the Trustee shall authenticate definitive Securities of any series in exchange for temporary Securities of such series. Until such exchange, temporary Securities of such series shall be entitled to the same rights, benefits and privileges as definitive Securities of such series.
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 registration of transfer, exchange, payment, replacement or cancellation and shall deliver such canceled Securities to the Company. The Company may not reissue or resell, or issue new Securities of any series to replace Securities of such series that the Company has redeemed or paid, or that have been delivered to the Trustee for cancellation.
SECTION 2.13. Defaulted Interest.
If the Company defaults on a payment of interest on any series of Securities, it shall pay the defaulted interest, plus (to the extent permitted by law) any interest payable on the defaulted interest (including post-petition interest in any proceeding under any Bankruptcy Law), in accordance with the terms hereof, to the Persons who are Holders of such series of Securities on a subsequent special record date, which date shall be at least five Business Days prior to the payment date. The Company shall fix such special record date and payment date in a manner satisfactory to the Trustee. At least 10 days before such special record date, the Company shall mail to each Holder of such series of Securities a notice that states the special record date, the payment date and the amount of defaulted interest, and interest payable on defaulted interest, if any, to be paid. The Company may make payment of any defaulted interest in any other lawful manner not inconsistent with the requirements (if applicable) of any securities exchange on which the Securities of such series may be listed and, upon such notice as may be required by such exchange, if, after written notice given by the Company to the Trustee of the proposed payment pursuant to this sentence, such manner of payment shall be deemed practicable by the Trustee.
SECTION 2.14. CUSIP Number.
The Company in issuing the Securities of any series may use a “CUSIP” number, and if so, such CUSIP number shall be included in notices of redemption or exchange as a convenience to Holders of such series; provided that any such notice may state that no representation is made as to the correctness or accuracy of the CUSIP number printed in the notice or on the Securities, and that reliance may be placed only on the other identification numbers printed on the Securities. The Company shall promptly notify the Trustee of any such CUSIP number used by the Company in connection with the issuance of the Securities and of any change in the CUSIP number.
SECTION 2.15. Deposit of Moneys.
Prior to 11:00 a.m., New York City time, on each Interest Payment Date and Maturity Date, the Company shall have deposited with the Paying Agent in immediately available funds money sufficient to make cash payments, if any, due on such Interest Payment Date or Maturity Date, as the case may be, in a timely manner which permits the Trustee to remit payment to the Holders on such Interest Payment Date or Maturity Date, as the case may be. The principal and interest on Global Securities shall be payable to the Depository or its nominee, as the case may be, as the sole registered owner and the sole Holder of the Global Securities represented thereby. The principal and interest on Physical Securities shall be payable, either in person or by mail, at the office of the Paying Agent.
SECTION 2.16. Book-Entry Provisions for Global Securities.
(a) Each Global Security authenticated under this Indenture shall be registered in the name of the Depository designated for such Global Security or a nominee thereof and delivered to such Depository or a nominee thereof or custodian therefor, and each such Global Security shall constitute a single Security for all purposes of this Indenture
(b) Members of, or direct or indirect participants in, the Depository (“Agent Members”) shall have no rights under this Indenture with respect to any Global Security held on their behalf by the Depository, or the Trustee as its custodian, or under the Global Security, and the Depository may be treated by the Company, the Trustee and any agent of the Company or the Trustee as the absolute owner of the Global Security for all purposes whatsoever. Notwithstanding the foregoing, nothing herein shall prevent the Company, the Trustee or any agent of the Company or the Trustee from giving effect to any written certification, proxy or other authorization (which may be in electronic form) furnished by the Depository or impair, as between the Depository and its Agent Members, the operation of customary practices governing the exercise of the rights of a Holder of any Security.
(c) Transfers of Global Securities shall be limited to transfer in whole, but not in part, to the Depository, its successors or their respective nominees. Interests of beneficial owners in the Global Securities of any series may be transferred or exchanged for Physical Securities of such series in accordance with the rules and procedures of the Depository. In addition, a Global Security shall be exchangeable for Physical Securities if (i) the Depository (x) notifies the Company that it is unwilling or unable to continue as depository for such Global Security or (y) has ceased to be a clearing agency registered under the Exchange Act, and, with respect to (x) or (y), the Company thereupon fails to appoint a successor depository within 90 days of such notice or cessation, (ii) the Company, at its option, notifies the Trustee in writing that it elects to cause the issuance of such Physical Securities in exchange for any or all of the Securities of any series represented by the Global Securities of such series or (iii) there shall have occurred and be continuing an Event of Default with respect to the Securities of any series. In all cases, Physical Securities delivered in exchange for any Global Security or beneficial interests therein shall be registered in the names, and issued in any authorized denominations, requested by or on behalf of the Depository (in accordance with its customary procedures).
(d) In connection with any transfer or exchange of a portion of the beneficial interest in any Global Security to beneficial owners pursuant to Section 2.16(c), the Registrar shall (if one or more Physical Securities are to be issued) reflect on its books and records the date and a decrease in the principal amount of the Global Security of such series in an amount equal to the principal amount of the beneficial interest in the Global Security of such series to be transferred, and the Company shall execute, and the Trustee shall upon receipt of a Company Order authenticate and make available for delivery, one or more Physical Securities of like tenor and amount.
(e) In connection with the transfer of Global Securities of any series as an entirety to beneficial owners pursuant to Section 2.16(c), the Global Securities of such series shall be deemed to be surrendered to the Trustee for cancellation, and the Company shall execute, and the Trustee shall authenticate and deliver, to each beneficial owner identified by the Depository in writing in exchange for its beneficial interest in the Global Securities of such series, an equal aggregate principal amount of Physical Securities of authorized denominations.
(f) Any beneficial interest in one of the Global Securities of any series that is transferred to a Person who takes delivery in the form of an interest in another Global Security of such series shall, upon transfer, cease to be an interest in such Global Security and become an interest in such other Global Security and, accordingly, shall thereafter be subject to all transfer restrictions and other procedures applicable to beneficial interests in such other Global Security for as long as it remains such an interest.
(g) The Holder of any Global Security may grant proxies and otherwise authorize any Person, including Agent Members and Persons that may hold interests through Agent Members, to take any action which a Holder is entitled to take under this Indenture or the Securities.
SECTION 2.17. Legend for Global Security.
Unless otherwise specified as contemplated by Section 2.01 for the Securities evidenced thereby, every Global Security authenticated and delivered 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 a Depository or a nominee thereof. This Security may not be exchanged in whole or in part for a Security registered, and no transfer of this Security in whole or in part may be registered, in the name of any Person other than such Depository or a nominee thereof, except in the limited circumstances described in the Indenture.
SECTION 2.18. Computation of Interest.
Except as otherwise specified as contemplated by Section 2.01, interest on the Securities shall be computed on the basis of a 360-day year of twelve 30-day months.
SECTION 2.19. Record Dates.
(a) The Company may set any day as a record date for the purpose of determining the Holders of outstanding Securities of any series entitled to give, make or take any request, demand, authorization, direction, notice, consent, waiver or other action provided or permitted by this Indenture to be given, made or taken by Holders of Securities of such series; provided that the Company may not set a record date for, and the provisions of this Section 2.19(a) shall not apply with respect to, the giving or making of any notice, declaration, request or direction referred to in Section 2.19(b). If any record date is set pursuant to this Section 2.19(a), the Holders of outstanding Securities of the relevant series on such record date, and no other Holders, shall be entitled to take the relevant action, whether or not such Holders remain Holders after such record date; provided that no such action shall be effective hereunder unless taken on or prior to the applicable Expiration Date by Holders of the requisite principal amount of outstanding Securities of such series on such record date. Nothing in this Section 2.19(a) shall be construed to prevent the Company from setting a new record date for any action for which a record date has previously been set pursuant to this Section 2.19(a) (whereupon the record date previously set shall automatically and with no action by any Person be cancelled and of no effect), and nothing in this Section 2.19(a) shall be construed to render ineffective any action taken by Holders of the requisite principal amount of outstanding Securities of the relevant series on the date such action is taken. Promptly after any record date is set pursuant to this Section 2.19(a), the Company, at its own expense, shall cause notice of such record date, the proposed action by Holders and the applicable Expiration Date to be given to the Trustee in writing and to each Holder of Securities of the relevant series.
(b) The Trustee may set any day as a record date for the purpose of determining the Holders of outstanding Securities of any series entitled to join in the giving or making of (i) any notice of default, (ii) any declaration of acceleration referred to in Section 6.02, (iii) any request to institute proceedings referred to in Section 6.06(2) or (iv) any direction referred to in Section 6.05, in each case with respect to Securities of such series. If any record date is set pursuant to this Section 2.19(b), the Holders of outstanding Securities of such series on such record date, and no other Holders, shall be entitled to join in such notice, declaration, request or direction, whether or not such Holders remain Holders after such record date; provided that no such action shall be effective hereunder unless taken on or prior to the applicable Expiration Date by Holders of the requisite principal amount of outstanding Securities of such series on such record date. Nothing in this Section 2.19(b) shall be construed to prevent the Trustee from setting a new record date for any action for which a record date has previously been set pursuant to this Section 2.19(b) (whereupon the record date previously set shall automatically and with no action by any Person be cancelled and of no effect), and nothing in this Section 2.19(b) shall be construed to render ineffective any action taken by Holders of the requisite principal amount of outstanding Securities of the relevant series on the date such action is taken. Promptly after any record date is set pursuant to this Section 2.19(b), the Trustee, at the Company’s expense, shall cause notice of such record date, the proposed action by Holders and the applicable Expiration Date to be given to the Company in writing and to each Holder of Securities of the relevant series.
(c) With respect to any record date set pursuant to this Section 2.19, the party hereto which sets such record dates may designate any day as the “Expiration Date” and from time to time may change the Expiration Date to any earlier or later day; provided that no such change shall be effective unless notice of the proposed new Expiration Date is given to the other party hereto in writing, and to each Holder of Securities of the relevant series, on or prior to the existing Expiration Date. If an Expiration Date is not designated with respect to any record date set pursuant to this Section 2.19, the party hereto which set such record date shall be deemed to have initially designated the 180th day after such record date as the Expiration Date with respect thereto, subject to its right to change the Expiration Date as provided in this Section 2.19. Notwithstanding the foregoing, no Expiration Date shall be later than the 180th day after the applicable record date.
(d) Without limiting the foregoing, a Holder entitled hereunder to take any action hereunder with regard to any particular Security may do so with regard to all or any part of the principal amount of such Security or by one or more duly appointed agents each of which may do so pursuant to such appointment with regard to all or any part of such principal amount.
ARTICLE THREE
REDEMPTION
SECTION 3.01. Applicability of Article.
Securities of any series which are redeemable before their Stated Maturity shall be redeemable in accordance with their terms and (except as otherwise specified as contemplated by Section 2.01 for such Securities) in accordance with this Article.
SECTION 3.02. Election To Redeem; Notices to Trustee.
If the Company elects to redeem the Securities of any series, at least 30 days prior to the Redemption Date (unless a shorter notice shall be agreed to in writing by the Trustee) but not more than 60 days before the Redemption Date, the Company shall notify the Trustee in writing of the Redemption Date, the principal amount of the Securities of such series to be redeemed and the Redemption Price, and deliver to the Trustee, no later than two Business Days prior to the Redemption Date, an Officers’ Certificate stating that such redemption will comply with the conditions contained herein and in the Securities of such series, as appropriate. Notice given to the Trustee pursuant to this Section 3.02 may, at the Company’s discretion, be subject to the satisfaction of one or more conditions precedent.
SECTION 3.03. Selection by Trustee of Securities To Be Redeemed.
If less than all the Securities of any series are to be redeemed, the Trustee shall select the Securities to be redeemed on a pro rata basis or on as nearly a pro rata basis as is practicable (subject to procedures of the Depository). The Trustee shall promptly notify the Company of the Securities selected for redemption and, in the case of any Securities selected for partial redemption, the principal amount thereof to be redeemed. The Trustee may select for redemption portions of the principal of the Securities that have denominations larger than $1,000. Securities and portions thereof the Trustee selects shall be redeemed in amounts of $1,000 or whole multiples of $1,000. For all purposes of this Indenture unless the context otherwise requires, provisions of this Indenture that apply to Securities called for redemption also apply to portions of Securities called for redemption.
SECTION 3.04. Notice of Redemption.
At least 30 days, and no more than 60 days, before a Redemption Date, the Company shall mail, or cause to be mailed, a notice of redemption by first-class mail to each Holder of Securities to be redeemed at such Holder’s last address as the same appears on the register maintained by the Registrar pursuant to Section 2.04.
The notice of redemption shall identify the Securities to be redeemed (including the CUSIP numbers thereof) and shall state:
(i) the Redemption Date;
(ii) the appropriate calculation of the Redemption Price;
(iii) if fewer than all outstanding Securities of any series are to be redeemed, the portion of the principal amount of such Securities to be redeemed and that, after the Redemption Date and upon surrender of such Securities, a new Security or Securities of such series in principal amount equal to the unredeemed portion will be issued;
(iv) the name and address of the Paying Agent;
(v) that Securities called for redemption must be surrendered to the Paying Agent to collect the Redemption Price;
(vi) that unless the Company defaults in making the redemption payment, interest on Securities called for redemption ceases to accrue on and after the Redemption Date; and
(vii) the aggregate principal amount of Securities of such series that are being redeemed.
In addition, if such redemption is subject to satisfaction of one or more conditions precedent, such notice of redemption shall describe each such condition, and if applicable, shall state that, in the Company’s discretion, the Redemption Date may be delayed until such time as any or all such conditions shall be satisfied, or such redemption may not occur and such notice may be rescinded in the event that any or all such conditions shall not have been satisfied by the Redemption Date as stated in such notice, or by the redemption date as so delayed.
At the Company’s written request made at least five Business Days prior to the date on which notice of redemption is to be given, the Trustee shall give the notice of redemption in the Company’s name and at the Company’s expense.
SECTION 3.05. Effect of Notice of Redemption.
Once the notice of redemption described in Section 3.04 is mailed, Securities called for redemption become due and payable on the Redemption Date and at the Redemption Price, including any premium, plus interest accrued to the Redemption Date, subject to the satisfaction of any conditions precedent provided in such notice of redemption. Upon surrender to the Paying Agent, such Securities shall be paid at the Redemption Price, including any premium, plus interest accrued to the Redemption Date; provided that if the Redemption Date is after a regular record date and on or prior to the Interest Payment Date, the accrued interest shall be payable to the Holder of the redeemed Securities registered on the relevant record date; and provided, further, that if a Redemption Date is a Legal Holiday, payment shall be made on the next succeeding Business Day and no interest shall accrue for the period from such Redemption Date to such succeeding Business Day. Such notice, if mailed in the manner provided in Section 3.03, shall be conclusively presumed to have been given whether or not the Holder receives such notice.
SECTION 3.06. Deposit of Redemption Price.
On or prior to 11:00 A.M., New York City time, on each Redemption Date, the Company shall deposit with the Paying Agent in immediately available funds money sufficient to pay the Redemption Price of, including premium, if any, and accrued interest on all Securities to be redeemed on that date other than Securities or portions thereof called for redemption on that date which have been delivered by the Company to the Trustee for cancellation.
On and after any Redemption Date, if money sufficient to pay the Redemption Price, including any premium, plus interest accrued to the Redemption Date, of the Securities called for redemption shall have been made available in accordance with the immediately preceding paragraph, the Securities called for redemption will cease to accrue interest and the only right of the Holders of such Securities will be to receive payment of the Redemption Price of and, subject to the first proviso in Section 3.05, accrued and unpaid interest on such Securities to the Redemption Date. If any Security called for redemption shall not be so paid upon surrender thereof for redemption, interest will accrue from the Redemption Date until such redemption payment is made, on the unpaid principal of such Security (and any premium) and interest not paid on such unpaid principal, in each case at the rate and in the manner provided in such Securities.
SECTION 3.07. Securities Redeemed in Part.
Upon surrender of a Security that is redeemed in part, the Company shall execute and the Trustee shall authenticate for the Holder thereof a new Security of such series equal in principal amount to the unredeemed portion of the original Security in the name of the Holder upon cancellation of the original Security surrendered, except that if a Global Security is so surrendered, the Company shall execute and the Trustee shall authenticate and deliver to the Depository, a new Global Security of such series in denomination equal to and in exchange for the unredeemed portion of the principal of the Global Security so surrendered.
SECTION 3.08. Mandatory Redemption.
The Company is not required to make mandatory redemption or sinking fund payments with respect to the Securities of any series, unless otherwise specified in accordance with Section 2.01 when establishing the terms of the Securities of such series.
ARTICLE FOUR
COVENANTS
SECTION 4.01. Payment of Principal, Premium and Interest.
The Company covenants and agrees for the benefit of each series of Securities that it will duly and punctually pay the principal of (and premium, if any) and interest on the Securities of such series in accordance with the terms of the Securities of such series and this Indenture.
SECTION 4.02. Maintenance of Office or Agency.
The Company will maintain in each Place of Payment for any series of Securities an office or agency where Securities of such series may be presented or surrendered for payment, where Securities of such series may be surrendered for registration of transfer or exchange and where notices and demands to or upon the Company in respect of the Securities of such series and this Indenture may be served. The Company will give prompt written notice to the Trustee of the location, and any change in the location, of such office or agency.
If at any time the Company shall fail to maintain any such required office or agency or shall fail to furnish the Trustee with the address thereof, such presentations, surrenders, notices and demands may be made or served at the Corporate Trust Office, 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 other offices or agencies where the Securities of any one or more series may be presented or surrendered for any or all such purposes 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 obligation to maintain an office or agency in each Place of Payment 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 location of any such other office or agency.
SECTION 4.03. Money for Securities Payments To Be Held in Trust.
If the Company shall at any time act as its own Paying Agent with respect to the Securities of any series, it will, on or before each due date of the principal of (and premium, if any) or interest on any of the Securities of such series, segregate and hold in trust for the benefit of the Persons entitled thereto a sum sufficient to pay the principal (and premium, if any) or interest so becoming due until such sums shall be paid to such Persons or otherwise disposed of as herein provided and will promptly notify the Trustee of its action or failure so to act.
Whenever the Company shall have a Paying Agent for the Securities of any series, it will, prior to 11:00 a.m., New York City time, on each due date of the principal of (and premium, if any) or interest on the Securities of such series, deposit with the Paying Agent a sum sufficient to pay the principal (and premium, if any) or interest so becoming due, such sum to be held in trust for the benefit of the Persons entitled to such principal, premium or interest, and (unless such Paying Agent is the Trustee) the Company will promptly notify the Trustee of its action or failure so to act.
The Company will cause the Paying Agent for the Securities of any series, other than the Trustee, to execute and deliver to the Trustee an instrument in which the Paying Agent shall agree with the Trustee, subject to the provisions of this Section 4.03, that the Paying Agent will:
(1) hold all sums held by it for the payment of the principal of (and premium, if any) or interest on the Securities of such series in trust for the benefit of the Persons entitled thereto until such sums shall be paid to such Persons or otherwise disposed of as herein provided;
(2) give the Trustee notice of any default by the Company in the making of any payment of principal (and premium, if any) or interest on the Securities of such series; and
(3) at any time during the continuance of any such default, upon the written request of the Trustee, forthwith pay to the Trustee all sums so held in trust by the Paying Agent.
The Company may at any time, for the purpose of obtaining the satisfaction and discharge of this Indenture or for any other purpose, pay, or by Company Order direct the Paying Agent to pay, to the Trustee all sums held in trust by the Company or the Paying Agent, such sums to be held by the Trustee upon the same trusts as those upon which such sums were held by the Company or the Paying Agent; and, upon such payment by the Paying Agent to the Trustee, the Paying Agent shall be released from all further liability with respect to such money.
SECTION 4.04. Corporate Existence.
Subject to Article Five, the Company will do or cause to be done all things necessary to preserve and keep in full force and effect its existence as a corporation.
SECTION 4.05. Payment of Taxes and Other Claims.
The Company will pay or discharge or cause to be paid or discharged, before the same shall become delinquent, (1) all taxes, assessments and governmental charges levied or imposed upon the Company or any Restricted Subsidiary or upon the income, profits or property of the Company or any Restricted Subsidiary, and (2) all lawful claims against the Company or any Restricted Subsidiary for labor, materials and supplies which in the case of either clause (1) or (2) of this Section 4.05, if unpaid, might by law become a lien upon a Principal Property; provided, however, that neither the Company nor any Restricted Subsidiary shall be required to pay or discharge or cause to be paid or discharged any such tax, assessment, charge or claim whose amount, applicability or validity is being contested in good faith by appropriate proceedings.
SECTION 4.06. Restrictions on Secured Debt.
(a) The Company will not, nor will it permit any Restricted Subsidiary to, create, incur, issue, assume or guarantee any indebtedness for borrowed money (hereinafter called “indebtedness”) secured by a mortgage, security interest, pledge or lien (hereinafter called “mortgage”) of or upon any Principal Property or on any Capital Stock or indebtedness of any Restricted Subsidiary (whether such Principal Property, Capital Stock or indebtedness is now owned or hereafter acquired) without in any such case making or causing to be made effective provision (and the Company covenants that in any such case it shall make or cause to be made effective provision) whereby the Securities (together with, if the Company shall so determine, any other indebtedness created, incurred, issued, assumed or guaranteed by the Company or any Restricted Subsidiary and then existing or thereafter created) shall be secured equally and ratably with (or, at the option of the Company, prior to) such indebtedness, so long as such indebtedness shall be so secured.
(b) The provisions of Section 4.06(a) shall not, however, apply to any indebtedness secured by any one or more of the following:
(1) mortgages of or upon any property acquired, constructed or improved by, or of or upon Capital Stock or indebtedness acquired by, the Company or any Restricted Subsidiary after the date of this Indenture (A) to secure the payment of all or any part of the purchase price of such property, Capital Stock or indebtedness upon the acquisition thereof by the Company or any Restricted Subsidiary, or (B) to secure any indebtedness issued, assumed or guaranteed by the Company or any Restricted Subsidiary prior to, at the time of, or within 180 days after (i) in the case of property, the later of the acquisition, completion of construction (including any improvements on existing property) or commencement of commercial operation of such property or (ii) in the case of Capital Stock or indebtedness, the acquisition of such Capital Stock or indebtedness, which indebtedness is issued, assumed or guaranteed for the purpose of financing or refinancing all or any part of the purchase price of such property, Capital Stock or indebtedness and, in the case of property, the cost of construction thereof or improvements thereon, provided that in the case of any such acquisition, construction or improvement the mortgage shall not apply to any property, Capital Stock or indebtedness theretofore owned by the Company or any Restricted Subsidiary, other than, in the case of any such construction or improvement, any theretofore unimproved or substantially unimproved real property on which the property so constructed or the improvement is located;
(2) mortgages of or upon any property, Capital Stock or indebtedness existing at the time of acquisition thereof by the Company or any Restricted Subsidiary;
(3) mortgages of or upon any property of a corporation existing at the time such corporation is merged with or into or consolidated with the Company or any Restricted Subsidiary or existing at the time of a sale or transfer of the properties of a corporation as an entirety or substantially as an entirety to the Company or any Restricted Subsidiary;
(4) mortgages of or upon any property of, or Capital Stock or indebtedness of, a corporation existing at the time such corporation becomes a Restricted Subsidiary;
(5) mortgages to secure indebtedness of any Restricted Subsidiary to the Company or to another Restricted Subsidiary;
(6) mortgages in favor of the United States of America or any State thereof, or any department, agency or instrumentality or political subdivision of the United States of America or any State thereof, or in favor of any other country or political subdivision, to secure partial, progress, advance or other payments pursuant to any contract or statute or to secure any indebtedness incurred or guaranteed for the purpose of financing or refinancing all or any part of the purchase price of the property, Capital Stock or indebtedness subject to such mortgages, or the cost of constructing or improving the property subject to such mortgages (including, without limitation, mortgages incurred in connection with pollution control, industrial revenue or similar financings); and
(7) any extension, renewal or replacement (or successive extensions, renewals or replacements) in whole or in part of any mortgage existing at the date of this Indenture or any mortgage referred to in the foregoing clauses (1) through (6), inclusive, provided, however, that the principal amount of indebtedness secured thereby shall not exceed the principal amount of indebtedness so secured at the time of such extension, renewal or replacement, and that such extension, renewal or replacement shall be limited to all or a part of the property (plus improvements and construction on such property), Capital Stock or indebtedness which was subject to the mortgage so extended, renewed or replaced.
(c) Notwithstanding the provisions of Section 4.06(a), the Company or any Restricted Subsidiary may, without equally and ratably securing the Securities, issue, assume or guarantee indebtedness secured by a mortgage not excepted by clauses (1) through (7) of Section 4.06(b), if the aggregate amount of such indebtedness, together with all other indebtedness of, or indebtedness guaranteed by, the Company and its Restricted Subsidiaries existing at such time and secured by mortgages not so excepted and the Attributable Debt in respect of Sale and Lease-Back Transactions existing at such time (other than Sale and Lease-Back Transactions permitted by clause (i) of Section 4.07 and other than Sale and Lease-Back Transactions the proceeds of which have been applied in accordance with clause (iii) of Section 4.07), does not at the time exceed [15]% of Consolidated Net Tangible Assets.
SECTION 4.07. Restrictions on Sale and Lease-Back Transactions.
The Company will not, and will not permit any Restricted Subsidiary to, enter into any arrangement with any Person providing for the leasing by the Company or any Restricted Subsidiary of any Principal Property, whether now owned or hereafter acquired (except for temporary leases for a term, including any renewal thereof, of not more than three years and except for leases between the Company and any Restricted Subsidiary, between any Restricted Subsidiary and the Company or between Restricted Subsidiaries), which property has been or is to be sold or transferred by the Company or such Restricted Subsidiary to such Person with the intention of taking back a lease of such property (herein referred to as a “Sale and Lease-Back Transaction”) unless:
(i) the Company or such Restricted Subsidiary would (at the time of entering into such arrangement) be entitled pursuant to clause (1) or (6) of Section 4.06(b), without equally and ratably securing the Securities, to issue, assume or guarantee indebtedness secured by a mortgage on such property, or
(ii) the Company or such Restricted Subsidiary would (at the time of entering into such arrangement) be entitled pursuant to Section 4.06(c), without equally and ratably securing the Securities, to issue, assume or guarantee indebtedness secured by a mortgage on such property in an amount at least equal to the Attributable Debt in respect of such Sale and Lease-Back Transaction or
(iii) the Company shall apply, within 180 days of the effective date of any such arrangement, an amount not less than the greater of (x) the net proceeds of the sale of such property or (y) the fair market value (as determined by the Board of Directors) of such property to either the prepayment or retirement (other than any mandatory prepayment or retirement) of indebtedness incurred or assumed by the Company or any Restricted Subsidiary (other than indebtedness owned by the Company or any Restricted Subsidiary) which by its terms matures at or is extendible or renewable at the option of the obligor to a date more than twelve months after the date of the creation of such indebtedness, or to the acquisition, construction or improvement of a manufacturing plant or manufacturing facility which is, or upon such acquisition, construction or improvement will be, a Principal Property.
SECTION 4.08. Reports to Holders.
The Company shall:
(1) file with the Trustee, within 15 days after the Company has filed the same with the Commission, 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 Commission may from time to time by rules and regulations prescribe) which the Company may be required to file with the Commission pursuant to Section 13 or Section 15(d) of the Exchange Act; or, if the Company is not required to file information, documents or reports pursuant to either of said Sections, then it shall file with the Trustee and the Commission, in accordance with rules and regulations prescribed from time to time by the Commission, such of the supplementary and periodic information, documents and reports which may be required pursuant to Section 13 of the Exchange Act in respect of a security listed and registered on a national securities exchange as may be prescribed from time to time in such rules and regulations;
(2) file with the Trustee and the Commission, in accordance with rules and regulations prescribed from time to time by the Commission, such additional information, documents and reports with respect to compliance by the Company with the conditions and covenants of this Indenture as may be required from time to time by such rules and regulations; and
(3) transmit by mail to all Holders, as their names and addresses appear in the register maintained by the Registrar pursuant to Section 2.04, within 30 days after the filing thereof with the Trustee, such summaries of any information, documents and reports required to be filed by the Company pursuant to Section 4.08(1) or (2) as may be required by rules and regulations prescribed from time to time by the Commission.
Delivery of such reports, information and documents to the Trustee is for informational purposes only and the Trustee’s receipt of such shall not constitute constructive notice of any information contained therein or determinable from information contained therein, including the Company’s compliance with any of its covenants hereunder (as to which the Trustee is entitled to rely exclusively on Officers’ Certificates).
All references in this Agreement to the filing of documents with the Commission includes, at such time as is permitted pursuant to this Section, the delivering of the same to the Trustee.
SECTION 4.09. Statement by Officers as to Default.
The Company will deliver to the Trustee, within 120 days after the end of each fiscal year of the Company ending after the date hereof, an Officers’ Certificate, stating whether or not to the best knowledge of the signers thereof the Company is in default in the performance and observance of any of the terms, provisions and conditions of Sections 4.06 and 4.07, and if the Company shall be in default, specifying all such defaults and the nature and status thereof of which they may have knowledge.
SECTION 4.10. Waiver of Certain Covenants.
The Company may omit in any particular instance to comply with any term, provision or condition set forth in Section 4.06 or 4.07 with respect to the Securities of any series if before the time for such compliance the Holders of a majority in principal amount of the outstanding Securities of such series shall, by act of such Holders, either waive such compliance in such instance or generally waive compliance with such term, provision or condition, but no such waiver shall extend to or affect such term, provision or condition except to the extent so expressly waived, and, until such waiver shall become effective, the obligations of the Company and the duties of the Trustee in respect of any such term, provision or condition shall remain in full force and effect.
ARTICLE FIVE
SUCCESSOR CORPORATION
SECTION 5.01. Consolidation, Merger and Sale of Assets.
The Company may consolidate or merge with or into any other corporation, or lease, sell or transfer all or substantially all of its property and assets to any Person, if:
(a) the corporation formed by such consolidation or into which the Company is merged, or the Person which acquires by lease, sale or transfer all or substantially all of the Company’s property and assets, is a corporation organized and existing under the laws of the United States of America, any State in the United States of America or the District of Columbia;
(b) the corporation formed by such consolidation or into which the Company is merged, or the corporation which acquires by lease, sale or transfer all or substantially all of the Company’s property and assets, agrees to pay the principal of, and any premium and interest on, the Securities and perform and observe all covenants and conditions of this Indenture by executing and delivering to the Trustee a supplemental indenture; and
(c) immediately after giving effect to such transaction and treating indebtedness for borrowed money which becomes the Company’s obligation or an obligation of a Restricted Subsidiary as a result of such transaction as having been incurred by the Company or such Restricted Subsidiary at the time of such transaction, no Event of Default, and no event which, after notice or lapse of time or both, would become an Event of Default, has happened and is continuing.
If, upon any such consolidation or merger, or upon any such lease, sale or transfer as provided above, any Principal Property or any capital stock or indebtedness of any Restricted Subsidiary, owned immediately prior to the transaction, would thereupon become subject to any mortgage, security interest, pledge or lien securing any indebtedness for borrowed money of, or guaranteed by, such other corporation (other than any mortgage, security interest, pledge or lien permitted as described in Section 4.06), the Company, prior to such consolidation, merger, lease, sale or transfer, will, by executing and delivering to the Trustee a supplemental indenture, secure the due and punctual payment of the principal of, and any premium and interest on, the Securities (together with, if the Company shall so determine, any other indebtedness of, or guaranteed by, the Company or any Restricted Subsidiary and then existing or thereafter created) equally and ratably with (or, at the Company’s option, prior to) the indebtedness secured by such mortgage, security interest, pledge or lien.
Upon any consolidation by the Company with or merger by the Company into any other corporation or any lease, sale or transfer of all or substantially all of the property and assets of the Company in accordance with this Section 5.01, the successor corporation formed by such consolidation or into which the Company is merged or to which such lease, sale or transfer 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 corporation had been named as the Company herein, and thereafter, except in the case of a lease, the predecessor corporation shall be relieved of all obligations and covenants under this Indenture and the Securities.
ARTICLE SIX
DEFAULTS AND REMEDIES
SECTION 6.01. Events of Default.
The following events shall be “Events of Default” with respect to Securities of any series:
(1) a failure to pay interest upon any Security of such series that continues for a period of 30 days after payment is due;
(2) a failure to pay the principal or premium, if any, on any Security of such series when due upon maturity, redemption, acceleration or otherwise;
(3) a failure to comply with any of the Company’s other agreements contained in this Indenture (other than a covenant or warranty a default in whose performance or whose breach is elsewhere in this Section specifically dealt with or which has expressly been included in this Indenture solely for the benefit of series of Securities other than such series), for a period of 90 days after written notice to the Company of such failure from the Trustee (or to the Company and the Trustee from the holders of at least 25% of the principal amount of the Securities of such series then outstanding) specifying such failure and requiring it to be remedied and stating that such notice is a “Notice of Default” hereunder;
(4) the Company pursuant to or within the meaning of any Bankruptcy Law:
(A) commences a voluntary insolvency proceeding;
(B) consents to the entry of an order for relief against it in an involuntary insolvency proceeding or consents to its dissolution or winding-up;
(C) consents to the appointment of a Custodian of it or for any substantial part of its property; or
(D) makes a general assignment for the benefit of its creditors; and
(5) a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that:
(A) is for relief against the Company in an involuntary insolvency proceeding;
(B) appoints a Custodian of the Company or for any substantial part of its property;
(C) orders the winding-up, liquidation or dissolution of the Company; or
(D) orders the presentation of any plan or arrangement, compromise or reorganization of the Company;
and in each such case the order or decree remains unstayed and in effect for 90 days.
SECTION 6.02. Acceleration of Maturity; Rescission.
If an Event of Default with respect to the Securities of any series (other than an Event of Default specified in Section 6.01(4) or 6.01(5)) shall have occurred and be continuing, the Trustee or the registered Holders of not less than 25% in aggregate principal amount of the Securities of such series then outstanding may declare to be immediately due and payable the principal amount of all Securities of such series then outstanding by written notice to the Company and the Trustee, plus accrued but unpaid interest to the date of acceleration. In case an Event of Default specified in Sections 6.01(4) and 6.01(5) shall occur, such amount with respect to all such Securities shall be automatically due and payable immediately without any declaration or other act on the part of the Trustee or the Holders of such Securities. After any such acceleration, but before a judgment or decree based on acceleration is obtained by the Trustee, the Holders of a majority in aggregate principal amount of such Securities then outstanding may rescind and annul such acceleration (i) if the rescission would not conflict with any judgment or decree, (ii) if all existing Events of Default have been cured or waived except nonpayment of principal, premium or interest that has become due solely because of the acceleration, (iii) to the extent the payment of such interest is lawful, interest on overdue installments of interest and overdue principal, which has become due otherwise than by such declaration of acceleration, has been paid, (iv) if the Company has paid the Trustee its reasonable compensation and reimbursed the Trustee for its expenses, disbursements and advances and all other amounts due to the Trustee under Section 7.07 and (v) in the event of the cure or waiver of an Event of Default of the type described in either Section 6.01(4) or (5), the Trustee shall have received an Officers’ Certificate to the effect that such Event of Default has been cured or waived. No such rescission shall affect any subsequent Default or impair any right consequent thereto.
Subject to Section 7.01, in case an Event of Default shall occur and be continuing with respect to any series of Securities, the Trustee shall be under no obligation to exercise any of its rights or powers under this Indenture at the request or direction of any of the Holders of such series of Securities, unless such Holders shall have offered to the Trustee reasonable indemnity. Subject to Section 7.07, the Holders of a majority in aggregate principal amount of such series of Securities then outstanding will 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 such Securities.
SECTION 6.03. Other Remedies.
If an Event of Default occurs and is continuing with respect to any series of Securities, the Trustee may pursue any available remedy by proceeding at law or in equity to collect the payment of principal of, or premium, if any, and interest on the Securities of such series or to enforce the performance of any provision of the Securities of such series or this Indenture and may take any necessary action requested of it as Trustee to settle, compromise, adjust or otherwise conclude any proceedings to which it is a party.
The Trustee may maintain a proceeding even if it does not possess any of the Securities of such series or does not produce any of them in the proceeding. Any such proceeding instituted by the Trustee may be brought in its own name and as trustee of an express trust, and any recovery of judgment shall, after provision for the payment of the reasonable compensation, expenses, disbursements of the Trustee and its counsel, be for the ratable benefit of the Holders of the Securities of such series in respect of which such judgment has been recovered. A delay or omission by the Trustee or any Holder in exercising any right or remedy accruing upon an Event of Default shall not impair the right or remedy or constitute a waiver of or acquiescence in the Event of Default. No remedy is exclusive of any other remedy. All available remedies are cumulative, to the extent permitted by law. Any costs associated with actions taken by the Trustee under this Section 6.03 shall be reimbursed to the Trustee by the Company.
SECTION 6.04. Waiver of Past Defaults and Events of Default.
Provided the Securities of any series are not then due and payable by reason of a declaration of acceleration, the Holders of a majority in principal amount of the then outstanding Securities of such series may on behalf of the Holders of all the affected Securities waive any past Default with respect to such Securities and its consequences by providing written notice thereof to the Company and the Trustee, except a Default (1) in the payment of interest on or the principal of (or premium, if any, on) any Security or (2) in respect of a covenant or provision hereof which under this Indenture cannot be amended without the consent of the Holder of each outstanding Security affected. In the case of any such waiver, the Company, the Trustee and the Holders of the Securities will be restored to their former positions and rights under this Indenture, respectively; provided that no such waiver shall extend to any subsequent or other Default or impair any right consequent thereto.
SECTION 6.05. Control by Majority.
The Holders of at least a majority in aggregate principal amount of the outstanding Securities of any series may 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. However, the Trustee may refuse to follow any direction that conflicts with law or this Indenture, that may involve the Trustee in personal liability, or that the Trustee determines in good faith may be unduly prejudicial to the rights of Holders of the affected Securities not joining in the giving of such direction and may take any other action it deems proper that is not inconsistent with any such direction received from Holders of such Securities.
SECTION 6.06. Limitation on Suits.
No Holder of any Security of any series will have any right to institute any proceeding with respect to this Indenture, or for the appointment of a receiver or trustee, or for any remedy hereunder, unless:
(1) the Holder gives the Trustee written notice of a continuing Event of Default with respect to the Securities of such series,
(2) the Holders of at least 25% in aggregate principal amount of outstanding Securities of such series make a written request to the Trustee to institute such proceeding or pursue such remedy as trustee,
(3) such Holder or Holders offer the Trustee indemnity satisfactory to the Trustee against any costs, liability or expense,
(4) the Trustee does not comply with the request within 60 days after receipt of the notice, request and offer of indemnity, and
(5) during such 60-day period the Holders of at least a majority in aggregate principal amount of the outstanding Securities of such series do not give the Trustee a direction that is inconsistent with the request.
However, such limitations do not apply to a suit instituted by a Holder of any Security for enforcement of payment of the principal of, and premium, if any, or interest on, such Security on or after the respective due date expressed in such Security.
SECTION 6.07. No Personal Liability of Directors, Officers, Employees and Stockholders.
No past, present or future director, officer, employee, incorporator, agent, member or stockholder or Affiliate of the Company, as such, shall have any liability for any obligations of the Company under the Securities, or this Indenture or for any claim based on, in respect of, or by reason of, such obligations or their creation. Each Holder of Securities by accepting a Security waives and releases all such liability. The waiver and release are part of the consideration for issuance of the Securities. This waiver may not be effective to waive liabilities under the U.S. federal securities laws.
SECTION 6.08. Rights of Holders To Receive Payment.
Notwithstanding any other provision of this Indenture, the right of any Holder of a Security to receive payment of the principal of or premium, if any, or interest, if any, on such Security or to bring suit for the enforcement of any such payment, on or after the due date expressed in the Securities shall not be impaired or affected without the consent of the Holder.
SECTION 6.09. Collection Suit by Trustee.
If an Event of Default with respect to Securities of any series in payment of principal, premium or interest specified in Section 6.01(1) or (2) occurs and is continuing, the Trustee may recover judgment in its own name and as trustee of an express trust against the Company (or any other obligor on the Securities of such series) for the whole amount of unpaid principal and accrued interest remaining unpaid.
SECTION 6.10. Trustee May File Proofs of Claim.
The Trustee may file such proofs of claim and 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 any other amounts due the Trustee under Section 7.07) and the Holders allowed in any judicial proceedings relative to the Company (or any other obligor upon the Securities), its creditors or its property and, unless prohibited by law, shall be entitled and empowered to collect and receive any monies or other property payable or deliverable on any such claims and to distribute the same after deduction of its charges and expenses to the extent that any such charges and expenses are not paid out of the estate in any such proceedings and any custodian 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 to 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 7.07.
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 proceedings. 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 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 in respect of which such judgment has been recovered.
SECTION 6.11. Priorities.
If the Trustee collects any money pursuant to this Article Six, it shall pay out the money in the following order:
FIRST: to the Trustee for amounts due under Section 7.07;
SECOND: to Holders for amounts due and unpaid on the affected Securities for principal, premium, if any, and interest as to each, ratably, without preference or priority of any kind, according to the amounts due and payable on the Securities; and
THIRD: to the Company.
The Trustee may fix a record date and payment date for any payment to Holders pursuant to this Section 6.11.
SECTION 6.12. Undertaking for Costs.
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 or omitted by it as Trustee, a court in its discretion may require the filing by any party litigant in the suit of an undertaking to pay the costs of the suit, and the court in its discretion may assess reasonable costs, including reasonable attorneys’ fees and expenses, against any party litigant in the suit, having due regard to the merits and good faith of the claims or defenses made by the party litigant. This Section 6.12 does not apply to a suit by the Company, a suit by the Trustee, a suit by a Holder pursuant to Section 6.08 or a suit by Holders of more than 10% in principal amount of the Securities of any series then outstanding.
SECTION 6.13. Waiver of Stay or Extension Laws.
The Company covenants (to the extent that it may lawfully do so) that it will not at any time insist upon, or plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay or extension law wherever enacted, now or at any time hereafter in force, which may affect the covenants or the performance of this Indenture; and the Company (to the extent that it may lawfully do so) hereby expressly waives all benefit or advantage of any such law and covenants that it will not 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.
ARTICLE SEVEN
TRUSTEE
SECTION 7.01. Duties of Trustee.
(a) If an Event of Default actually known to a Responsible Officer of the Trustee has occurred and is continuing, the Trustee shall exercise such of 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 person would exercise or use under the circumstances in the conduct of such Person’s own affairs.
The Trustee shall not be deemed to have notice of any Default or Event of Default unless a Responsible Officer of the Trustee has actual knowledge thereof or unless written notice of any event which is in fact such a Default or Event of Default is received by the Trustee at the Corporate Trust Office, and such notice references the Securities and this Indenture.
(b) Except during the continuance of an Event of Default:
(1) the Trustee need perform only such duties as are specifically set forth in this Indenture and no others.
(2) in the absence of bad faith or willful misconduct on its part, the Trustee may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon certificates or opinions furnished to the Trustee and conforming to the requirements of this Indenture but, in the case of any such certificates or opinions which by any provision hereof are specifically required to be furnished to the Trustee, the Trustee shall be under a duty to examine the same to determine whether or not they conform on their face to the requirements of this Indenture (but need not confirm or investigate the accuracy of mathematical calculations or other facts stated therein). Whenever in the administration of this Indenture the Trustee shall deem it desirable that a matter be proved or established prior to taking, suffering or omitting any action hereunder, the Trustee (unless other evidence be herein specifically prescribed) may, in the absence of bad faith on its part, conclusively rely upon an Officers’ Certificate, subject to the requirement in the preceding sentence, if applicable.
(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:
(1) this Section 7.01(c) does not limit the effect of Section 7.01(b);
(2) the Trustee shall not be liable for any error of judgment made in good faith by a Responsible Officer or Responsible Officers of the Trustee, unless it is proved that the Trustee was negligent in ascertaining the pertinent facts;
(3) the Trustee shall not be liable with respect to any action it takes or omits to take in good faith in accordance with a direction of the Holders of a majority in aggregate principal amount of the outstanding Securities of any series received by it pursuant to the terms hereof; and
(4) no provision of this Indenture shall require the Trustee to expend or risk its own funds or otherwise incur any financial liability in the performance of any of its rights, powers or duties if it shall have reasonable grounds for believing that repayment of such funds or adequate indemnity satisfactory to it against such risk or liability is not reasonably assured to it.
(d) Whether or not therein expressly so provided, Sections 7.01(a), (b), (c) and (e) shall govern every provision of this Indenture that in any way relates to the Trustee.
(e) 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 pursuant to this Indenture, unless such Holders shall have offered to the Trustee security or indemnity satisfactory to the Trustee against the costs, expenses and liabilities which might be incurred by it in compliance with such request.
(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.
SECTION 7.02. Rights of Trustee.
Subject to Section 7.01:
(1) the Trustee may conclusively rely on any document (whether in its original or facsimile form) reasonably 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;
(2) before the Trustee acts or refrains from acting, it may require an Officers’ Certificate or an Opinion of Counsel, or both, which shall conform to the provisions of Section 10.05, and the Trustee shall be protected and shall not be liable for any action it takes or omits to take in good faith in reliance on such certificate or opinion;
(3) the Trustee may act through its attorneys and agents and shall not be responsible for the misconduct or negligence of any agent appointed by it with due care;
(4) the Trustee shall not be liable for any action it takes or omits to take in good faith which it reasonably believes to be authorized or within its rights or powers conferred upon it by this Indenture; provided that the Trustee’s conduct does not constitute willful misconduct, negligence or bad faith;
(5) the Trustee may consult with counsel of its selection, and the advice or opinion of such counsel with respect to legal matters relating to the Securities or this Indenture shall be full and complete authorization and protection from liability in respect of any action taken, omitted or suffered by it hereunder in good faith and in accordance with the advice or opinion of such counsel;
(6) the rights, privileges, protections, immunities and benefits given to the Trustee, including, without limitation, its right to be indemnified, are extended to, and shall be enforceable by, the Trustee in each of its capacities hereunder, and each agent, custodian and other person employed to act hereunder;
(7) the Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, debenture, note, other evidence of indebtedness or other paper or document, but the Trustee, in its discretion, may make such further inquiry or investigation into such facts or matters as it may see fit, and, if the Trustee shall determine to make such further inquiry or investigation, it shall be entitled to examine the books records, and premises of the Company, personally or by agent or attorney at the sole cost of the Company and shall incur no liability or additional liability of any kind by reason of such inquiry or investigation; and
(8) the Trustee may request that the Company deliver an Officers’ Certificate setting forth the names of individuals or titles of officers authorized at such time to take specified actions pursuant to this Indenture, which Officers’ Certificate may be signed by any person authorized to sign an Officers’ Certificate, including any person specified as so authorized in any such certificate previously delivered and not suspended.
SECTION 7.03. Individual Rights of Trustee.
The Trustee in its individual or any other capacity may become the owner or pledgee of Securities and may make loans to, accept deposits from, perform services for or otherwise deal with the Company or any Affiliate thereof, with the same rights it would have if it were not Trustee. Any Agent may do the same with like rights. The Trustee, however, shall be subject to Sections 7.10 and 7.11.
SECTION 7.04. Trustee’s Disclaimer.
The Trustee shall not be responsible for and makes no representation as to the validity or adequacy of this Indenture or the Securities, the Trustee shall not be accountable for the Company’s use of the proceeds from the sale of Securities or any money paid to the Company pursuant to the terms of this Indenture and the Trustee shall not be responsible for any statement in the Securities or this Indenture other than its certificate of authentication, provided that the Trustee represents that it is duly authorized to execute and deliver this Indenture, authenticate the Securities and perform its obligations hereunder and that the statements made by it in any Statement of Eligibility and Qualification on Form T-1 supplied by it to the Company will be true and accurate subject to the qualifications set forth therein.
SECTION 7.05. Notice of Defaults.
If a Default occurs with respect to Securities of any series, and such Default is continuing and if it is known to the Trustee, the Trustee shall give to each Holder of Securities of such series a notice of the Default within 90 days after it occurs in the manner and to the extent provided in the TIA and otherwise as provided in this Indenture. Except in the case of a Default in payment of the principal of or interest on any Security (including payments pursuant to a redemption or repurchase of the Securities pursuant to the provisions of this Indenture), the Trustee may withhold the notice if and so long as a committee of its Responsible Officers in good faith determines that withholding the notice is in the interests of Holders.
SECTION 7.06. Reports by Trustee to Holders.
If required by TIA §313(a), within 60 days after June 15 of any year, the Trustee shall mail to each Holder a brief report dated as of such date that complies with TIA §313(a). The Trustee also shall comply with TIA §313(b)(2). The Trustee shall also transmit by mail all reports as required by TIA §313(c) and TIA§ 313(d).
Reports pursuant to this Section 7.06 shall be transmitted by mail:
(1) to all Holders of Securities, as the names and addresses of such Holders appear on the register maintained by the Registrar pursuant to Section 2.04; and
(2) to such Holders of Securities as have, within the two years preceding such transmission, filed their names and addresses with the Trustee for that purpose.
A copy of each report at the time of its mailing to Holders shall be filed with the Company, the Commission and each stock exchange on which the Securities are listed. The Company shall promptly notify the Trustee when the Securities are listed on any stock exchange or delisted therefrom.
SECTION 7.07. Compensation and Indemnity.
The Company shall pay to the Trustee and Agents from time to time such compensation for their services hereunder (which compensation shall not be limited by any provision of law in regard to the compensation of a trustee of an express trust) as shall be agreed upon in writing. The Company shall reimburse the Trustee and Agents upon request for all reasonable disbursements, expenses and advances incurred or made by them in connection with the Trustee’s duties under this Indenture, including the reasonable compensation, disbursements and expenses of the Trustee’s agents and external counsel, except any expense disbursement or advance as may be attributable to its willful misconduct, negligence or bad faith.
The Company shall fully indemnify each of the Trustee and any predecessor Trustee for, and hold each of them harmless against, any and all loss, damage, claim, liability or expense, including without limitation taxes (other than taxes based on the income of the Trustee or such Agent) and reasonable attorneys’ fees and expenses incurred by each of them in connection with the acceptance or performance of its duties under this Indenture, including the reasonable costs and expenses of defending itself against any claim or liability in connection with the exercise or performance of any of its powers or duties hereunder (including, without limitation, settlement costs). The Trustee or Agent shall notify the Company in writing promptly of any claim of which a Responsible Officer of the Trustee has actual knowledge asserted against the Trustee or Agent for which it may seek indemnity; provided that the failure by the Trustee or Agent to so notify the Company shall not relieve the Company of its obligations hereunder except to the extent the Company is actually prejudiced thereby. In the event that a conflict of interest exists, the Trustee may have separate counsel, which counsel must be reasonably acceptable to the Company, and the Company shall pay the reasonable fees and expenses of such counsel.
Notwithstanding the foregoing, the Company need not reimburse the Trustee for any expense or indemnify it against any loss or liability determined to have been incurred by the Trustee through its own willful misconduct, negligence or bad faith.
To secure the payment obligations of the Company in this Section 7.07, the Trustee shall have a lien prior to the Securities on all money or property held or collected by the Trustee and such money or property held in trust to pay principal of and interest on particular Securities.
The obligations of the Company under this Section 7.07 to compensate and indemnify the Trustee, Agents and each predecessor Trustee and to pay or reimburse the Trustee, Agents and each predecessor Trustee for expenses, disbursements and advances shall be the liability of the Company and shall survive the resignation or removal of the Trustee and the satisfaction, discharge or other termination of this Indenture, including any termination or rejection hereof under any Bankruptcy Law.
When the Trustee incurs expenses or renders services after an Event of Default specified in Section 6.01(4) or (5) occurs, the expenses and the compensation for the services are intended to constitute expenses of administration under any Bankruptcy Law.
For purposes of this Section 7.07, the term “Trustee” shall include any trustee appointed pursuant to this Article Seven.
SECTION 7.08. Replacement of Trustee.
The Trustee shall comply with TIA §313(b) to the extent applicable.
The Trustee may resign by so notifying the Company in writing no later than 15 Business Days prior to the date of the proposed resignation. The Holders of a majority in principal amount of the outstanding Securities of any series may remove the Trustee with respect to such series by notifying the Company and the removed Trustee in writing and may appoint a successor Trustee with respect to such series with the Company’s written consent, which consent shall not be unreasonably withheld. The Company may remove the Trustee at its election if:
(1) the Trustee fails to comply with Section 7.10 or TIA §310;
(2) the Trustee is adjudged a bankrupt or an insolvent or an order for relief is entered with respect to the Trustee under Bankruptcy Law;
(3) a receiver or other public officer takes charge of the Trustee or its property; or
(4) the Trustee otherwise becomes incapable of acting.
If the Trustee resigns or is removed with respect to the Securities of one or more series or if a vacancy exists in the office of Trustee for any reason, the Company shall promptly appoint a successor Trustee or Trustees with respect to the Securities of that or those series (it being understood that any such successor Trustee may be appointed with respect to one or more or all of such series and that at any time there shall be only one Trustee with respect to the Securities of any particular series).
If a successor Trustee with respect to the Securities of any 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 a majority in principal amount of the outstanding Securities of such series may petition at the expense of the Company any court of competent jurisdiction, in the case of the Trustee, for the appointment of a successor Trustee.
If the Trustee fails to comply with Section 7.10, any Holder 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 following such delivery, the retiring Trustee shall, subject to its rights under Section 7.07, transfer all property held by it as Trustee to the successor Trustee, 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 under this Indenture. A successor Trustee shall mail notice of its succession to each Holder of the affected Securities. Notwithstanding replacement of the Trustee pursuant to this Section 7.08, the Company’s obligations under Section 7.07 shall continue for the benefit of the retiring Trustee.
In case of the appointment hereunder of a successor Trustee with respect to the Securities of one or more (but not all) series, the Company, the retiring Trustee and each successor Trustee with respect to the Securities of one or more series shall execute and deliver a supplemental indenture wherein each successor Trustee shall accept such appointment and which (1) shall contain such provisions as shall be necessary or desirable to transfer and confirm to, and to vest in, each successor Trustee all the rights, powers, trusts and duties of the retiring Trustee with respect to the Securities of that or those series to which the appointment of such successor Trustee relates, (2) if the retiring Trustee is not retiring with respect to all Securities, shall contain such provisions as shall be deemed necessary or desirable to confirm that all the rights, powers, trusts and duties of the retiring Trustee with respect to the Securities of that or those series as to which the retiring Trustee is not retiring shall continue to be vested in the retiring Trustee, and (3) shall 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, it being understood that nothing herein or in such supplemental indenture shall constitute such Trustees co-trustees of the same trust and that each such Trustee shall be trustee of a trust or trusts hereunder separate and apart from any trust or trusts hereunder administered by any other such Trustee; and upon the execution and delivery of such supplemental indenture the resignation or removal of the retiring Trustee shall become effective to the extent provided therein and each such successor Trustee, without any further act, deed or conveyance, shall become vested with all the rights, powers, trusts and duties of the retiring Trustee with respect to the Securities of that or those series to which the appointment of such successor Trustee relates; but, on request of the Company or any successor Trustee, such retiring Trustee shall duly assign, transfer and deliver to such successor Trustee all property and money held by such retiring Trustee hereunder with respect to the Securities of that or those series to which the appointment of such successor Trustee relates.
SECTION 7.09. Successor Trustee by Consolidation, Merger, etc.
If the Trustee consolidates with, merges or converts into, or transfers all or substantially all of its corporate trust assets to, another corporation, subject to Section 7.10, the successor corporation without any further act shall be the successor Trustee; provided such corporation shall be otherwise qualified and eligible under this Article Seven.
SECTION 7.10. Eligibility; Disqualification.
This Indenture shall always have a Trustee who satisfies the requirements of TIA §310(a)(1), (2) and (5) in every respect. The Trustee (together with its corporate parent) shall have a combined capital and surplus of at least $50 million as set forth in the most recent applicable published annual report of condition. The Trustee shall comply with TIA §310(b), including the provision in §310(b)(1).
SECTION 7.11. Preferential Collection of Claims Against Company.
The Trustee shall comply with TIA §311(a), excluding any creditor relationship listed in TIA § 311(b). A Trustee who has resigned or been removed shall be subject to TIA §311(a) to the extent indicated therein.
ARTICLE EIGHT
AMENDMENT AND WAIVER
SECTION 8.01. Without Consent of Holders.
The Company and the Trustee may enter into one or more supplemental indentures, without the consent of any Holder, for any of the following purposes:
(i) to cure any ambiguity, omission, defect or inconsistency in this Indenture;
(ii) to comply with Section 5.01;
(iii) to provide for uncertificated Securities;
(iv) to secure the Securities under this Indenture;
(v) to add to the covenants of the Company for the benefit of the Holders of the Securities or to surrender any right or power conferred upon the Company;
(vi) to make any amendment that does not adversely affect the rights of any Holder of the Securities in any material respect;
(vii) to comply with any requirement of the Commission in connection with the qualification of this Indenture under the TIA;
(viii) to add to, change or eliminate any of the provisions of this Indenture in respect of one or more series of Securities, provided that any such addition, change or elimination (A) shall neither (i) apply to any Security of any series created prior to the execution of such supplemental indenture and entitled to the benefit of such provision nor (ii) modify the rights of the Holder of any such Security with respect to such provision or (B) shall become effective only when there is no such Security outstanding;
(ix) to establish the form or terms of Securities of any series as permitted by Section 2.01; or
(x) to evidence and provide the acceptance of the appointment of a successor Trustee under Section 7.08.
SECTION 8.02. With Consent of Holders.
(a) The Company and the Trustee may enter into one or more supplemental indentures to add to, change or eliminate any of the provisions of this Indenture in respect of the Securities of a series with the consent of the Holders of a majority in aggregate principal amount of the then outstanding Securities of such series (including consents obtained in connection with a tender offer or exchange offer for such Securities). Any past default or compliance with any provisions of this Indenture with respect to Securities of a series may be waived (except a default in the payment of principal, premium or interest and except as provided in Section 8.02(b)) with the consent of the Holders of at least a majority in aggregate principal amount of the then outstanding Securities of such series.
(b) However, without the consent of each Holder of an outstanding Security of the affected series, no amendment may,
(i) change the due date of the principal of, or any installment of principal of or interest on any Security;
(ii) reduce the principal amount of, or any premium or interest rate on, any Security;
(iii) change the place or currency of payment of principal of, or any premium or interest on any Security;
(iv) impair the right to institute suit for the enforcement of any payment on or with respect to any Security; or
(v) reduce the percentage in principal amount of the then outstanding the Securities, the consent of whose holders is required for modification or amendment of the indenture, for waiver of compliance with certain provisions of the indenture or for waiver of certain defaults.
(c) The consent of the Holders of the Securities shall not be necessary to approve the particular form of any proposed amendment. It shall be sufficient if such consent approves the substance of the proposed amendment.
(d) After an amendment that requires the consent of the Holders of the affected Securities becomes effective, the Company shall mail to each Holder of the affected Securities at such Holder’s address appearing in the register maintained by the Registrar pursuant to Section 2.04 a notice briefly describing such amendment. However, the failure to give such notice to all Holders of such Securities, or any defect therein, shall not impair or affect the validity of the amendment.
(e) Upon the written request of the Company accompanied by a Board Resolution authorizing the execution of any such supplemental indenture, and upon the receipt by the Trustee of evidence reasonably satisfactory to the Trustee of the consent of the Holders as aforesaid and upon receipt by the Trustee of the documents described in Section 8.06, the Trustee shall join with the Company in the execution of such supplemental indenture unless such supplemental indenture affects the Trustee’s own rights, duties or immunities under this Indenture, in which case the Trustee may, but shall not be obligated to, enter into such supplemental indenture.
SECTION 8.03. Compliance with TIA.
Every amendment to this Indenture or the Securities shall comply with the TIA as then in effect.
SECTION 8.04. Revocation and Effect of Consents.
(a) Until an amendment or waiver becomes effective, a consent to it by a Holder is a continuing consent by the Holder and every subsequent Holder of a Security or portion of a Security that evidences the same indebtedness as the Security of the consenting Holder, even if notation of the consent is not made on any Security. However, until an amendment or waiver becomes effective, any such Holder or subsequent Holder may revoke the consent as to its Security or portion of its Security; provided that if a record date for purposes of such consent is fixed pursuant to Section 2.19, then those Persons who were such Holders at such record date (or their duly appointed agents), and no others, shall be entitled to revoke any consent previously given, whether or not such Persons continue to be such Holders after such record date. Such revocation shall be effective only if the Trustee receives the notice of revocation before the date the amendment or waiver becomes effective.
(b) After an amendment or waiver becomes effective with respect to the Securities of any series affected thereby, it shall bind every Holder of such Securities unless it is an amendment of the type described in Section 8.02(b), in which case the amendment shall bind each such Holder who has consented to it and every subsequent Holder of a Security that evidences the same indebtedness as the Security of the consenting Holder.
SECTION 8.05. Notation on or Exchange of Securities.
If an amendment changes the terms of a Security, the Trustee (in accordance with the specific written direction of the Company) shall request the Holder of the Security (in accordance with the specific written direction of the Company) to deliver it to the Trustee. In such case, the Trustee shall place an appropriate notation on the Security about the changed terms and return it to the Holder. Alternatively, if the Company or the Trustee so determines, the Company in exchange for the Security shall issue and the Trustee shall authenticate a new Security that reflects the changed terms. Failure to make the appropriate notation or issue a new Security shall not affect the validity and effect of such amendment.
SECTION 8.06. Trustee To Sign Amendments, etc.
The Trustee shall sign any amendment or waiver authorized pursuant to this Article Eight if the amendment or waiver does not affect the rights, duties, liabilities or immunities of the Trustee. If it does affect the rights, duties, liabilities or immunities of the Trustee, the Trustee may, but need not, sign such amendment or waiver. In signing or refusing to sign such amendment or waiver, the Trustee shall be entitled to receive and, subject to Section 7.01, shall be fully protected in relying upon an Officers’ Certificate and an Opinion of Counsel stating, in addition to the matters required by Section 10.04, that such amendment or waiver is authorized or permitted by this Indenture and is a legal, valid and binding obligation of the Company, enforceable against the Company in accordance with its terms (subject to customary exceptions).
ARTICLE NINE
DISCHARGE OF INDENTURE; DEFEASANCE
SECTION 9.01. Discharge of Liability on Securities; Defeasance.
(a) This Indenture shall be discharged and shall cease to be of further effect as to all Securities issued hereunder when:
(i) either (x) all the Securities that have been authenticated, except lost, stolen or destroyed Securities that have been replaced or paid and Securities for whose payment money has been deposited in trust and thereafter repaid to the Company, have been delivered to the Trustee for cancellation; or (y) all the Securities that have not been delivered to the Trustee for cancellation have become due and payable by reason of the mailing of a notice of redemption or otherwise or will become due and payable within one year and the Company has irrevocably deposited or caused to be deposited with the Trustee as trust funds in trust solely for the benefit of the Holders of the affected Securities, cash in U.S. dollars, Government Obligations maturing as to principal and interest in such amounts and at such times as will insure (without consideration of any reinvestment of interest) the availability of cash, or a combination thereof, in amounts as will be sufficient to pay and discharge the entire indebtedness on the Securities not delivered to the Trustee for cancellation for principal, premium, if any, and accrued interest to the date of maturity or redemption;
(ii) the Company has paid or caused to be paid all sums payable by it under this Indenture; and
(iii) the Company has delivered irrevocable instructions to the Trustee under this Indenture to apply the deposited money toward the payment of the Securities at the date of maturity or redemption.
In addition, the Company shall deliver an Officers’ Certificate and an Opinion of Counsel to the Trustee stating that all conditions precedent to satisfaction and discharge have been satisfied.
(b) Subject to Sections 9.01(c) and 9.02, the Company may at any time elect to terminate its obligations with respect to any series of Securities (hereinafter, “Legal Defeasance”) except for obligations under Sections 2.04, 2.07 and 2.08 and obligations under the TIA on a date the applicable conditions set forth in Section 9.02 are satisfied. The Company may terminate its obligations with respect to any series of Securities under Sections 4.06, 4.07 and 4.08 on a date the applicable conditions set forth in Section 9.02 are satisfied (hereinafter, “Covenant Defeasance”) and thereafter, any failure to comply with any of Section 4.06, 4.07 or 4.08 will not constitute a Default or an Event of Default with respect to the Securities of such series. The Company may exercise its Legal Defeasance option with respect to the series of any Securities notwithstanding its prior exercise of its Covenant Defeasance option with respect to such series.
(c) If the Company exercises its Legal Defeasance option with respect to a series of any Securities, payment of the Securities of such series may not be accelerated because of an Event of Default with respect thereto.
(d) Upon satisfaction of the conditions set forth herein and upon request of the Company, the Trustee shall acknowledge in writing the discharge of those obligations that the Company terminates upon the exercise of the Legal Defeasance option or the Covenant Defeasance option.
(e) Notwithstanding Section 9.01(a) or (b), the Company’s obligations in Sections 2.04, 2.06, 2.07, 2.08, 7.07, 9.05 and 9.06 shall survive until such time as the Securities have been paid in full. Thereafter, the Company’s obligations in Sections 7.07, 9.05 and 9.06 shall survive.
SECTION 9.02. Conditions to Defeasance.
The Legal Defeasance option or the Covenant Defeasance option may be exercised with respect to a series of Securities only if:
(a) the Company irrevocably deposits in trust with the Trustee cash in U.S. dollars, Government Obligations maturing as to principal and interest in such amounts and at such times as will insure (without consideration of any reinvestment of interest) the availability of cash, or a combination thereof, in amounts as will be sufficient to pay and discharge the entire indebtedness on such series of Securities for principal, premium, if any, and accrued interest to the date of maturity or redemption;
(b) the Company delivers to the Trustee a certificate from an nationally recognized firm of independent certified public accountants expressing its opinion that the payments of principal, premium, if any, and interest when due and without reinvestment on the deposited Government Obligations plus any deposited money without investment will provide cash at such times and in such amounts as will be sufficient to pay principal, premium, if any, and interest when due on all Securities of such series to maturity or redemption;
(c) 123 days pass after the deposit is made and during the 123-day period no Default described in Section 6.01(5) occurs with respect to the Company or any other Person making such deposit which is continuing at the end of the period;
(d) no Default or Event of Default has occurred and is continuing on the date of such deposit and after giving effect thereto;
(e) such deposit does not constitute a default under any other material agreement or instrument binding on the Company;
(f) the Company delivers to the Trustee an Opinion of Counsel to the effect that the trust resulting from the deposit does not constitute, or is not qualified as, a regulated investment company under the Investment Company Act of 1940;
(g) in the case of an exercise of the Legal Defeasance option, the Company delivers to the Trustee an Opinion of Counsel stating that:
(1) the Company has received from, or there has been published by, the Internal Revenue Service a ruling; or
(2) since the date of this Indenture there has been a change in the applicable U.S. Federal income tax law,
to the effect, in either case, that, and based thereon such Opinion of Counsel shall confirm that, the Holders of the affected Securities will not recognize income, gain or loss for U.S. Federal income tax purposes as a result of such Legal Defeasance election and will be subject to U.S. Federal income tax on the same amounts, in the same manner and at the same time as would have been the case if such election has not occurred;
(h) in the case of an exercise of the Covenant Defeasance option, the Company delivers to the Trustee an Opinion of Counsel to the effect that the Holders of the affected Securities will not recognize income, gain or loss for U.S. Federal income tax purposes as a result of such Covenant Defeasance and will be subject to U.S. Federal income tax on the same amounts, in the same manner and at the same times as would have been the case if such election had not occurred; and
(i) the Company delivers to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that all conditions precedent to the exercise of the Legal Defeasance option or the Covenant Defeasance option, as applicable, have been complied with as required by this Indenture.
SECTION 9.03. Deposited Money and Government Obligations To Be Held in Trust; Other Miscellaneous Provisions.
All money and Government Obligations (including the proceeds thereof) deposited with the Trustee pursuant to Section 9.02(a) in respect of the outstanding Securities of any series shall be held in trust and applied by the Trustee, in accordance with the provisions of such Securities and this Indenture, to the payment, either directly or through any Paying Agent, to the Holders of such Securities, of all sums due and to become due thereon in respect of principal, premium, if any, and accrued interest, but such money need not be segregated from other funds except to the extent required by law.
The Company shall pay and indemnify the Trustee against any tax, fee or other charge imposed on or assessed against the Government Obligations deposited pursuant to Section 9.02(a) or the principal, premium, if any, and interest received in respect thereof other than any such tax, fee or other charge which by law is for the account of the Holders of the outstanding Securities of the affected series.
Anything in this Article Nine to the contrary notwithstanding, the Trustee shall deliver or pay to the Company from time to time upon a request of the Company any money or Government Obligations held by it as provided in Section 9.02(a) which, in the opinion of a nationally recognized firm of independent public accountants expressed in a written certification thereof delivered to the Trustee, are in excess of the amount thereof which would then be required to be deposited to effect an equivalent Legal Defeasance or Covenant Defeasance.
SECTION 9.04. Reinstatement.
If the Trustee or Paying Agent is unable to apply any money or Government Obligations in accordance with Section 9.01 by reason of any legal proceeding or by reason of any order or judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting such application, the Company’s obligations under this Indenture and the Securities shall be revived and reinstated as though no deposit had occurred pursuant to this Article Nine until such time as the Trustee or Paying Agent is permitted to apply all such money or Government Obligations in accordance with Section 9.01; provided that if the Company has made any payment of principal of, premium, if any, or accrued interest on any Securities because of the reinstatement of its obligations, the Company shall be subrogated to the rights of the Holders of such Securities to receive such payment from the money or Government Obligations held by the Trustee or Paying Agent.
SECTION 9.05. Moneys Held by Paying Agent.
In connection with the satisfaction and discharge of this Indenture, all moneys then held by any Paying Agent under the provisions of this Indenture shall, upon written demand of the Company, be paid to the Trustee, or if sufficient moneys have been deposited pursuant to Section 9.02(a), to the Company upon a request of the Company, and thereupon the Paying Agent shall be released from all further liability with respect to such moneys.
SECTION 9.06. Moneys Held by Trustee.
Any moneys deposited with the Trustee or any Paying Agent or then held by the Company in trust for the payment of the principal of, or premium, if any, or interest on any Security that are not applied but remain unclaimed by the Holder of such Security for two years after the date upon which the principal of, or premium, if any, or interest on such Security shall have become due and payable shall be repaid to the Company upon a request of the Company, or if such moneys are then held by the Company in trust, such moneys shall be released from such trust; and the Holder of such Security entitled to receive such payment shall thereafter, as an unsecured general creditor, look only to the Company for the payment thereof, and all liability of the Trustee or the Paying Agent with respect to such trust money shall thereupon cease; provided that the Trustee or the Paying Agent, before being required to make any such repayment, may, at the expense of the Company either mail to each Holder affected, at the address shown in the register of the Securities maintained by the Registrar pursuant to Section 2.04, or cause to be published once a week for two successive weeks, in a newspaper published in the English language, customarily published each Business Day and of general circulation in the City of New York, New York, a notice that such money remains unclaimed and that, after a date specified therein, which shall not be less than 30 days from the date of such mailing or publication, any unclaimed balance of such moneys then remaining will be repaid to the Company. After payment to the Company or the release of any money held in trust by the Company, Holders entitled to the money must look only to the Company for payment as general creditors unless applicable abandoned property law designates another Person.
ARTICLE TEN
MISCELLANEOUS
SECTION 10.01. TIA Controls.
If any provision of this Indenture limits, qualifies or conflicts with another provision which is required to be included in this Indenture by the TIA, the required provision shall control. If any provision of this Indenture modifies any TIA provision that may be so modified, such TIA provision shall be deemed to apply to this Indenture as so modified. If any provision of this Indenture excludes any TIA provision that may be so excluded, such TIA provision shall be excluded from this Indenture.
The provisions of TIA §§310 through 317 that impose duties on any Person (including the provisions automatically deemed included unless expressly excluded by this Indenture) are a part of and govern this Indenture, whether or not physically contained herein.
SECTION 10.02. Notices.
Except for notice or communications to Holders, any notice or communication shall be given in writing and when received if delivered in person, when receipt is acknowledged if sent by facsimile, on the next Business Day if timely delivered by a nationally recognized courier service that guarantees overnight delivery or two Business Days after deposit if mailed by first-class mail, postage prepaid, addressed as follows:
If to the Company:
Celsion Corporation
Attn: Chief Financial Officer
Fax: ( ) -
If to the Trustee, Registrar or Paying Agent:
[Name and address of Trustee]
Attn.:
Fax: ( ) -
Such notices or communications shall be effective when received and shall be sufficiently given if so given within the time prescribed in this Indenture.
The Company or the Trustee by written notice to the others may designate additional or different addresses for subsequent notices or communications.
Any notice or communication mailed to a Holder shall be mailed to such Holder by first-class mail, postage prepaid, at his address shown on the register kept by the Registrar.
Failure to mail a notice or communication to a Holder or any defect in it shall not affect its sufficiency with respect to other Holders. If a notice or communication to a Holder is mailed in the manner provided above, it shall be deemed duly given, whether or not the addressee receives it.
In case by reason of the suspension of regular mail service, or by reason of any other cause, it shall be impossible to mail any notice as required by this Indenture, then such method of notification as shall be made with the approval of the Trustee shall constitute a sufficient mailing of such notice.
SECTION 10.03. Communications by Holders with Other Holders.
Holders may communicate pursuant to TIA §312(b) with other Holders with respect to their rights under this Indenture or the Securities. The Company, the Trustee, the Registrar and anyone else shall have the protection of TIA §312(c).
SECTION 10.04. 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, if so requested by the Trustee, the Company shall furnish to the Trustee:
(1) 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
(2) an Opinion of Counsel stating that, in the opinion of such counsel, all such conditions precedent have been complied with,
except that in the case of any such application or request as to which the furnishing of such documents is specifically required by any provision of this Indenture relating to such particular request or application, no additional certificate or opinion need be furnished.
SECTION 10.05. Statements Required in Certificate and Opinion.
Each certificate with respect to compliance by or on behalf of the Company with a condition or covenant provided for in this Indenture shall include:
(1) a statement that the Person making such certificate or opinion has read such covenant or condition;
(2) 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;
(3) a statement that, in the opinion of such Person, such Person has made such examination or investigation as is necessary to enable such Person to express an informed opinion as to whether or not such covenant or condition has been complied with; and
(4) a statement as to whether or not, in the opinion of such Person, such covenant or condition has been complied with.
SECTION 10.06. Form of Documents Delivered to Trustee.
In any case where several matters are required to be certified by, or covered by an opinion of, any specified Person, it is not necessary that all such matters be certified by, or covered by the opinion of, only one such Person, or that they be so certified or covered by only one document, but one such Person may certify or give an opinion with respect to some matters and one or more other such Persons as to other matters, and any such Person may certify or give an opinion as to such matters in one or several documents.
Any certificate or opinion of an Officer of the Company may be based, insofar as it relates to legal matters, upon a certificate or opinion of, or representations by, counsel, unless such Officer knows, or in the exercise of reasonable care should know, that the certificate or opinion or representations with respect to the matters upon which such Officer’s certificate or opinion is based are erroneous. Any such certificate or Opinion of Counsel may be based, insofar as it relates to factual matters, upon a certificate or opinion of, or representations by, an Officer or Officers of the Company stating that the information with respect to such factual matters is in the possession of the Company, unless such counsel knows, or in the exercise of reasonable care should know, that the certificate or opinion or representations with respect to such matters are erroneous.
Where any Person is required to make, give or execute two or more applications, requests, consents, certificates, statements, opinions or other instruments under this Indenture, they may, but need not, be consolidated and form one instrument.
SECTION 10.07. Rules by Trustee and Agents.
The Trustee may make reasonable rules for action by or meetings of Holders. The Registrar and Paying Agent may make reasonable rules for their functions.
SECTION 10.08. Legal Holidays.
If a payment date with respect to any Security is a Legal Holiday at a Place of Payment for such Security, 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 10.09. Governing Law.
This Indenture and the Securities shall be governed by and construed in accordance with the laws of the State of New York.
SECTION 10.10. No Adverse Interpretation of Other Agreements.
This Indenture may not be used to interpret another indenture, loan, security or debt agreement of the Company. No such indenture, loan, security or debt agreement may be used to interpret this Indenture.
SECTION 10.11. Successors.
All agreements of the Company in this Indenture and the Securities shall bind their respective successors. All agreements of the Trustee, any additional trustee and any Paying Agents in this Indenture shall bind its successor.
SECTION 10.12. Benefits of Indenture.
Nothing in this Indenture or in the Securities, express or implied, shall give to any Person, other than the parties hereto and their successors hereunder and the Holders, any benefit or any legal or equitable right, remedy or claim under this Indenture.
SECTION 10.13. Multiple Counterparts.
The parties may sign multiple counterparts of this Indenture. Each signed counterpart shall be deemed an original, but all of them together represent one and the same agreement.
SECTION 10.14. Table of Contents, Headings, etc.
The table of contents, cross-reference sheet 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. Separability.
Each provision of this Indenture shall be considered separable and if for any reason any provision which is not essential to the effectuation of the basic purpose of this Indenture or 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.
[Signature Page Follow]
IN WITNESS WHEREOF, the parties have caused this Indenture to be duly executed all as of the date and year first written above.
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CELSION CORPORATION |
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[NAME OF TRUSTEE],
as Trustee |
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EXHIBIT A-1
CUSIP
CELSION CORPORATION
[ ] % [SECURITY] DUE [ ]
CELSION CORPORATION, a Delaware corporation, as issuer (the “Company”), for value received, promises to pay to [CEDE & CO.] or registered assigns the principal sum of [ ] on [ ], [ ].
Interest Payment Dates: [ ] and [ ].
Record Dates: [ ] and [ ].
Reference is made to the further provisions of this Security contained herein, which will for all purposes have the same effect as if set forth at this place.
IN WITNESS WHEREOF, the Company has caused this Security to be signed manually or by facsimile by one of its duly authorized officers.
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CELSION CORPORATION |
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Certificate of Authentication
This is one of the Securities of the series designated therein referred to in the within-mentioned Indenture.
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[NAME OF TRUSTEE],
as Trustee |
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Dated:
[FORM OF REVERSE OF SECURITY]
CELSION CORPORATION
[ ]% [SECURITY] DUE [ ]
1. Interest. CELSION CORPORATION, a Delaware corporation, as issuer (the “Company”), promises to pay, until the principal hereof is paid or made available for payment, interest on the principal amount set forth on the face hereof at a rate of [ ]% per annum. Interest hereon will accrue from and including the most recent date to which interest has been paid or, if no interest has been paid, from and including [ ] to but excluding the date on which interest is paid. Interest shall be payable in arrears on each [ ] and [ ], commencing [ ]. Interest will be computed on the basis of a [360-day year comprised of twelve 30-day months]. The Company shall pay interest on overdue principal and on overdue interest (to the full extent permitted by law) at the rate borne by the Securities.
2. Method of Payment. The Company will pay interest hereon (except defaulted interest) to the Persons who are registered Holders at the close of business on [ ] and [ ] immediately preceding the interest payment date (whether or not a Business Day). Holders must surrender Securities to a Paying Agent to collect principal payments. The Company will pay to the Paying Agent principal and interest in money of the United States of America that at the time of payment is legal tender for payment of public and private debts. If a Holder has given wire transfer instructions to the Company, the Company may pay, or cause to be paid by the Paying Agent, all principal, interest on that Holder’s Securities in accordance with those instructions. All other payments on the Securities will be made at the office or agency of the Paying Agent and Registrar unless the Company elects to make interest payments by check mailed to the Holders at their address set forth in the register of Holders.
3. Paying Agent and Registrar. Initially, (the “Trustee”) will act as a Paying Agent and Registrar. The Company may change any Paying Agent or Registrar without notice to the Holders. The Company or any of its Subsidiaries may act as Paying Agent or Registrar.
4.
Indenture. This Security is on the series designated on the fact hereof [limited in aggregate principal amount to $ ].
This Security is one of a duly authorized issue of securities of the Company issued and to be issued in one or more series under an Indenture
dated as of [ ], 202 (the “Indenture”, which term shall have the meaning assigned to it in such
instrument) between the Company and the Trustee. This is one of an issue of Securities of the Company issued, or to be issued, under
the Indenture. The terms of the Securities include those stated in the Indenture and those made part of the Indenture by reference to
the Trust Indenture Act of 1939 (15 U.S. Code §§ 77aaa-77bbbb), as amended from time to time (the “Trust Indenture Act”).
The Securities are subject to all such terms, and Holders are referred to the Indenture and the Trust Indenture Act for a statement of
them. Capitalized and certain other terms used herein and not otherwise defined have the meanings set forth in the Indenture.
[5. If applicable, insert – Optional Redemption. The Securities of this series are subject to redemption [if applicable, insert – [at any time] [on or after , 20 ], as a whole or in part, at the election of the Company at the Redemption Price equal to ]. The Company may provide in such notice that payment of such price and performance of the Company’s obligations with respect to such redemption or purchase may be performed by another Person. Any such notice may, at the Company’s discretion, be subject to the satisfaction of one or more conditions precedent.
[6. Redemption Procedures. The Trustee will select Securities called for redemption on a pro rata basis or on as nearly a pro rata basis as is practicable (subject to procedures of the Depository); provided that no Securities of $[ ] or less shall be redeemed in part. A new Security of this series in principal amount equal to the un-redeemed portion thereof will be issued in the name of the Holder thereof upon cancellation of the original Security. Securities called for redemption pursuant to this paragraph 6 become due on the date fixed for redemption. On and after the date fixed for redemption, interest stops accruing on Securities or portions of them called for redemption.]
[7. Notice of Redemption. Notices of redemption shall be mailed by first class mail at least 30 but not more than 60 days before the redemption date to each Holder of Securities to be redeemed at its registered address. If any Security of this series is to be redeemed in part only, the notice of redemption that relates to such Security shall state the portion of the principal amount thereof to be redeemed.]
8. Denominations, Transfer, Exchange. The Securities of this series are in registered form without coupons and in denominations of $[ ] and integral multiples of $[ ]. A Holder may transfer or exchange Securities of this series in accordance with the Indenture. The Registrar may require a Holder, among other things, to furnish appropriate endorsements and transfer documents and to pay to it any taxes and fees required by law or permitted by the Indenture.
10. Persons Deemed Owners. The registered Holder of this Security may be treated as the owner of this Security for all purposes.
11. Unclaimed Money. If money for the payment of principal or interest remains unclaimed for two years, the Trustee or Paying Agent will pay the money back to the Company at its written request. After that, Holders entitled to the money must look to the Company for payment as general creditors unless an “abandoned property” law designates another Person.
12. Amendment, Waiver, Etc. The Company and the Trustee (if a party thereto) may, without the consent of the Holders of any outstanding Securities, amend or waive the Indenture or the Securities for certain specified purposes, including, among other things, curing ambiguities, defects or inconsistencies, maintaining the qualification of the Indenture under the Trust Indenture Act, as amended, providing for the assumption by a successor to the Company of its obligations under the Indenture and making any change that does not materially and adversely affect the rights of any Holder of each series to be affected. Other amendments of the Indenture or the Securities of each series may be made by the Company and the Trustee with the consent of the Holders of Securities of such series of not less than a majority of the aggregate principal amount of the outstanding Securities of such series, subject to certain exceptions requiring the consent of the Holders of the particular Securities of such series to be affected.
13. Successor Corporation. When a successor corporation assumes all the obligations of its predecessor under the Securities and the Indenture and the transaction com-plies with the terms of Article Five of the Indenture, the predecessor corporation will, except as provided in Article Five, be released from those obligations.
14. Defaults and Remedies. Events of Default are set forth in the Indenture. Subject to certain limitations in the Indenture, if an Event of Default (other than an Event of Default specified in Sections 6.01(4) and 6.01(5) of the Indenture) with respect to the Securities of this series occurs and is continuing, then, and in each and every such case, either the Trustee, by notice in writing to the Company, or the Holders of not less than 25% of the principal amount of the Securities of this series then outstanding, by notice in writing to the Company and the Trustee, may, and the Trustee at the request of such Holders shall, declare due and payable, if not already due and payable, the principal of and any accrued and unpaid interest on all of the Securities of this series; and upon any such declaration all such amounts upon such Securities shall become and be immediately due and payable, anything in the Indenture or in the Securities to the contrary notwithstanding. If an Event of Default specified in Sections 6.01(4) and 6.01(5) of the Indenture occurs, then the principal of and any accrued and unpaid interest on all of the Securities of this series shall immediately become due and payable without any declaration or other act on the part of the Trustee or any Holder. Holders may not enforce the Indenture or the Securities of this series except as provided in the Indenture. The Trustee may require indemnity satisfactory to it before it enforces the Indenture or the Securities of this series. Subject to certain limitations, Holders of a majority in principal amount of the then outstanding Securities may direct the Trustee in its exercise of any trust or power. The Trustee may withhold from Holders notice of any continuing default (except a default in payment of principal, premium, if any, or interest on the Securities of this series) if it determines that withholding notice is in their best interests.
15. Trustee Dealings with Company. Subject to certain limitations imposed by the Trust Indenture Act, the Trustee, in its individual or any other capacity, may make loans to, accept deposits from, and perform services for the Company or its Affiliates, and may otherwise deal with the Company or its Affiliates, as if it were not Trustee.
16. No Recourse Against Others. No past, present or future director, officer, employee, incorporator, agent, member or stockholder or Affiliate of the Company, as such, shall have any liability for any obligations of the Company under the Securities of this series, the Indenture or for any claim based on, in respect of, or by reason of, such obligations or their creation. Each Holder of Securities of this series by accepting a Security of this series waives and releases all such liabilities. The waiver and release are part of the consideration for issuance of the Securities of this series.
17. Discharge; Defeasance. The Company’s obligations pursuant to the Indenture with respect to Securities of this series will be discharged, except for obligations pursuant to certain sections thereof, subject to the terms of the Indenture, upon the payment of all the Securities of this series or upon the irrevocable deposit with the Trustee of United States dollars or Government Obligations sufficient to pay when due principal of and interest on the Securities of this series to maturity or redemption.
The Indenture contains provisions for defeasance at any time of (a) the entire indebtedness of the Company on this Security and (b) certain restrictive covenants and the related Events of Default, upon compliance by the Company with certain conditions set forth therein, which provisions apply to this Security.
18. Authentication. This Security shall not be valid until the Trustee signs the certificate of authentication on the other side of this Security.
19. Governing Law. THIS SECURITY SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.
20. Abbreviations. Customary abbreviations may be used in the name of a Holder or an assignee, such as: TEN COM (= tenants in common), TENANT (= tenants by the entireties), JT TEN (= joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian), and U/G/M/A (= Uniform Gifts to Minors Act).
The Company will furnish to any Holder upon written request and without charge a copy of the Indenture. Requests may be made to:
If to the Company:
Name and Address
Attn:
ASSIGNMENT
I or we assign and transfer this Security to:
(Insert assignee’s social security or tax I.D. number)
(Print or type name, address and zip code of assignee)
and irrevocably appoint:
Agent to transfer this Security on the books of the Company. The Agent may substitute another to act for him.
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Your
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(Sign exactly as your name appears on the other side of this Security) |
SIGNATURE GUARANTEE
Signatures must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Registrar, which requirements include membership or participation in the Security Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined by the Registrar in addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended
58
Exhibit
5.1
May
15, 2024
Imunon,
Inc.
997
Lenox Drive, Suite 100
Lawrenceville,
NJ 08648
Ladies
and Gentlemen:
We
have acted as counsel to Imunon, Inc., a Delaware corporation (the “Company”), in connection with the registration
by the Company under the Securities Act of 1933 (the “Securities Act”), pursuant to a Registration Statement on Form
S-3 filed with the Securities and Exchange Commission (the “Commission”) on or about the date hereof (such registration
statement is herein referred to as the “Registration Statement”), of up to $75,000,000 of one or more of the following
securities (collectively, the “Securities”), which the Company may issue from time to time under the Registration
Statement: (i) shares of the Company’s common stock, par value $0.01 per share (the “Common Stock”), which may
include shares of Common Stock issuable upon the conversion or exercise of the other Securities included in the Registration Statement,
(ii) shares of the Company’s preferred stock, par value $0.01 per share, to be issued in one or more series (the “Preferred
Stock”), which may include shares of Preferred Stock issuable upon the conversion or exercise of the Debt Securities and Warrants
(as defined herein) included in the Registration Statement, (iii) one or more series of debt securities of the Company (the “Debt
Securities”), the terms of which will be determined by the board of directors of the Company prior to the issuance thereof,
(iv) warrants (the “Warrants”) to purchase Common Stock, Preferred Stock or Debt Securities, the terms of which will
be determined by the board of directors of the Company prior to the issuance thereof, (v) rights to subscribe for and to purchase Common
Stock, Preferred Stock or other Securities included in the Registration Statement (the “Rights”), and (vi) units,
consisting of any combination of Common Stock, Preferred Stock, Debt Securities, Warrants or Rights, securing the holder’s obligation
to purchase the securities under the applicable stock unit agreement (the “Units”).
We
have reviewed such corporate records, certificates and other documents, and such questions of law, as we have considered necessary or
appropriate for the purposes of this opinion. We have assumed that all signatures are genuine, that all documents submitted to us as
originals are authentic and that all copies of documents submitted to us conform to the originals.
We
have assumed that, at the time of the issuance, sale and delivery of each series of Debt Securities and each issue of Warrants, Rights
or Units, as the case may be: (i) the execution, delivery and performance by the Company of the Indenture and any supplemental indenture
thereto and any warrant agreement, subscription agreement, and unit agreement, as applicable (collectively with the Indenture, the “Documents”),
as applicable, and all actions necessary for the issuance of the applicable Securities, and the forms and terms thereof, will comply
with all requirements and restrictions, if any, applicable to the Company, whether imposed by any agreement or instrument to which the
Company is a party or by which it is bound or any court or other governmental or regulatory body having jurisdiction over the Company;
(ii) the Company will have duly authorized, executed and delivered any such Document and will have duly authorized the issuance of any
such Security, and none of such authorizations will have been modified or rescinded, and there will not have occurred any change in law
affecting the validity, legally binding character and enforcement thereof; and (iii) the prospectus included in the Registration Statement
will describe the Securities offered thereby or an appropriate prospectus supplement will have been prepared, delivered and filed with
the Commission in compliance with the Securities Act and the applicable rules and regulations thereunder and will describe the Securities
offered thereby. We have also assumed that the Securities will be offered and sold in compliance with applicable federal and state securities
laws and in the manner stated in the Registration Statement and the appropriate prospectus supplement. We have assumed further that the
Documents will be governed by and construed in accordance with the laws of the State of New York. We have further assumed that, at the
time of the issuance, sale and delivery of any shares of Common Stock or Preferred Stock, or of any other Securities which are exercisable
or exchangeable for, or convertible into, Common Stock or Preferred Stock, the Company will have a sufficient number of authorized but
unissued shares of Common Stock or Preferred Stock, as the case may be, under its certificate of incorporation. With respect to any Document
executed or to be executed by any party other than the Company, we have assumed that such party has, or will have, duly authorized, executed
and delivered the Documents to which it is a party and that each such Document is, or will be, the valid and binding obligation of such
party, enforceable against it in accordance with its terms.
We
have relied as to certain matters on information obtained from public officials, officers of the Company, and other sources believed
by us to be responsible.
Based
upon the foregoing, and subject to the qualifications set forth below, we are of the opinion that when, as and if:
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(1)
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With
respect to the shares of Common Stock: (i) the Registration Statement and any required post-effective amendments thereto have all
become effective under the Securities Act and all prospectus supplements required by applicable law have been delivered and filed
as required by such laws, (ii) all necessary corporate action has been taken by the Company to authorize the issuance and sale of
shares of Common Stock and fix or otherwise determine the consideration to be received for such shares and the terms of the offer
and sale thereof, (iii) any legally required consents, approvals, authorizations and other orders of the Commission and other regulatory
authorities have been obtained and (iv) the shares of Common Stock with consideration so fixed have been duly issued and delivered
by the Company against payment therefor in accordance with such corporate action and applicable law and as contemplated in the Registration
Statement and the related prospectus supplement setting forth the terms of such shares and the plan of distribution, then, upon the
happening of such events, such shares of Common Stock (including any shares of Common Stock to be issued by the Company upon the
conversion or exercise of other Securities issued by the Company pursuant to the Registration Statement) will be duly authorized
and validly issued and will be fully paid and non-assessable. |
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(2)
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With
respect to shares of Preferred Stock: (i) the Registration Statement and any required post-effective amendments thereto have all
become effective under the Securities Act and all prospectus supplements required by applicable law have been delivered and filed
as required by such laws, (ii) all necessary corporate action has been taken by the Company to establish the rights, preferences
and privileges of, and limitations on, any series of Preferred Stock and to authorize the issuance and sale of shares of such series
of Preferred Stock and fix or otherwise determine the consideration to be received for such shares and the terms of the offer and
sale thereof, (iii) any legally required consents, approvals, authorizations and other orders of the Commission and other regulatory
authorities have been obtained, (iv) an appropriate certificate of designations with respect to such series of Preferred Stock has
been duly filed in accordance with applicable law and (v) the shares of Preferred Stock with terms so fixed have been duly issued
and delivered by the Company against payment therefor in accordance with such corporate action and applicable law and as contemplated
in the Registration Statement and the related prospectus supplement setting forth the terms of such shares and plan of distribution,
then, upon the happening of such events, such shares of Preferred Stock (including any shares of Preferred Stock to be issued by
the Company upon the conversion or exercise of other Securities issued by the Company pursuant to the Registration Statement) will
be duly authorized and validly issued and will be fully paid and non-assessable. |
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(3)
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With
respect to the Debt Securities: (i) the Registration Statement and any required post-effective amendments thereto have all become
effective under the Securities Act and all prospectus supplements required by applicable law have been delivered and filed as required
by such laws, (ii) an indenture in the form of Exhibit 4.6 to the Registration Statement and any necessary indenture supplements
have been duly executed and delivered on behalf of the Company and a trustee qualified to act under applicable law and such indenture
has been qualified under the Trust Indenture Act of 1939, as amended, (iii) all necessary corporate action has been taken by the
Company to authorize, execute and deliver the applicable indenture and any necessary indenture supplement and to authorize the form,
terms, execution and delivery of any Debt Securities, (iv) any legally required consents, approvals, authorizations and other orders
of the Commission and other regulatory authorities have been obtained, (v) any shares of Common Stock or Preferred Stock issuable
upon the conversion of such Debt Securities, as applicable, have been duly and validly authorized and reserved for issuance and sale
and (vi) such Debt Securities have been duly executed by the Company and authenticated by the trustee in accordance with the applicable
indenture, or any applicable indenture supplement, and have been duly issued and delivered against payment therefor in accordance
with such corporate action and applicable law and as contemplated in the Registration Statement and the related prospectus supplement
setting forth the terms of the Debt Securities and plan of distribution, then, upon the happening of such events, such Debt Securities
(including any Debt Securities to be issued by the Company upon the conversion or exercise of other Securities issued by the Company
pursuant to the Registration Statement) will constitute the valid and binding obligations of the Company, enforceable against the
Company in accordance with their terms, subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and other
laws of general applicability relating to or affecting creditors’ rights and to general equity principles. |
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(4)
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With
respect to the Warrants: (i) the Registration Statement and any required post-effective amendments thereto have become effective
under the Securities Act and all prospectus supplements required by applicable law have been delivered and filed as required by such
laws, (ii) all necessary corporate action has been taken by the Company to authorize, execute and deliver a warrant agreement and
to authorize the form, terms, execution and delivery of any Warrants and to fix or otherwise determine the consideration to be received
for such Warrants and the terms of the offer and sale thereof, (iii) any legally required consents, approvals, authorizations and
other orders of the Commission and other regulatory authorities have been obtained, (iv) any shares of Common Stock or Preferred
Stock or any Debt Securities purchasable upon the exercise of such Warrants, as applicable, have been duly and validly authorized
and reserved for issuance and sale and (v) such Warrants have been duly executed and delivered by the Company against payment therefor
in accordance with any applicable warrant agreement, in accordance with such corporate action and applicable law and as contemplated
in the Registration Statement and the related prospectus supplement setting forth the terms of such shares and plan of distribution,
then, upon the happening of such events, such Warrants (including any Warrants to be issued by the Company upon the conversion or
exercise of other Securities issued by the Company pursuant to the Registration Statement) will constitute the valid and binding
obligations of the Company, enforceable against the Company in accordance with their terms, subject to bankruptcy, insolvency, fraudulent
transfer, reorganization, moratorium and other laws of general applicability relating to or affecting creditors’ rights and
to general equity principles. |
| |
|
|
| |
(5)
|
With
respect to the Rights: (i) the Registration Statement and any required post-effective amendments thereto all have become effective
under the Securities Act and all prospectus supplements required by applicable law have been delivered and filed as required by such
laws; (ii) all necessary corporate action has been taken by the Company to authorize, execute and deliver a subscription agreement
or subscription rights certificate and to authorize the form, terms, execution and delivery of the Rights and to fix or otherwise
determine the consideration to be received for the Rights and the terms of the offer and sale thereof; (iii) any legally required
consents, approvals, authorizations and other orders of the Commission and any other regulatory authorities have been obtained; (iv)
any shares of Common Stock or Preferred Stock, as applicable, have been duly and validly authorized and, reserved for issuance and
sale; and (v) any necessary subscription agreement or subscription rights certificate has been duly authorized, executed by the Company
and the rights agent, and the Rights have been duly executed and delivered by the Company against payment therefor in accordance
with any applicable subscription agreement or subscription rights certificate, and in accordance with such corporate action and applicable
law and as contemplated in the Registration Statement and the prospectus supplement setting forth the terms of the Rights and the
plan of distribution, then, upon the happening of such events, the Rights will constitute the valid and binding obligations of the
Company, enforceable against the Company in accordance with their terms, subject to bankruptcy, insolvency, fraudulent transfer,
reorganization, moratorium and other laws of general applicability relating to or affecting creditors’ rights and to general
equity principles. |
| |
(6)
|
With
respect to the Units: (i) the Registration Statement and any required post-effective amendments thereto all have become effective
under the Securities Act and all prospectus supplements required by applicable law have been delivered and filed as required by such
laws; (ii) all necessary corporate action has been taken by the Company to authorize, execute and deliver a unit agreement and to
authorize the form, terms, execution and delivery of the Units and to fix or otherwise determine the consideration to be received
for the Units and the terms of the offer and sale thereof; (iii) any legally required consents, approvals, authorizations and other
orders of the Commission and any other regulatory authorities have been obtained; (iv) any shares of Common Stock or Preferred Stock
or any Debt Securities or other securities to be issued pursuant to such Units, have been duly and validly authorized and, with respect
to shares of Common Stock or Preferred Stock, reserved for issuance and sale; and (v) any necessary unit agreement has been duly
authorized, executed and delivered by the Company and any other party thereto, and the Units have been duly executed and delivered
by the Company against payment therefor in accordance with any applicable unit agreement, and in accordance with such corporate action
and applicable law and as contemplated in the Registration Statement and the prospectus supplement setting forth the terms of the
Units and the plan of distribution, then, upon the happening of such events, the Units will constitute the valid and binding obligations
of the Company, enforceable against the Company in accordance with their terms, subject to bankruptcy, insolvency, fraudulent transfer,
reorganization, moratorium and other laws of general applicability relating to or affecting creditors’ rights and to general
equity principles. |
We
express no opinion as to: (i) waivers of defenses, subrogation and related rights, rights to trial by jury, rights to object to venue,
or other rights or benefits bestowed by operation of law; (ii) releases or waivers of unmatured claims or rights; (iii) indemnification,
contribution, exculpation, or arbitration provisions, or provisions for the non-survival of representations, to the extent they purport
to indemnify any party against, or release or limit any party’s liability for, its own breach or failure to comply with statutory
obligations, or to the extent such provisions are contrary to public policy; or (iv) provisions for liquidated damages and penalties,
penalty interest and interest on interest.
We
are members of the bar of the State of Massachusetts and the State of New York. We do not express any opinion herein on any laws other
than the laws of the State of New York, the Delaware General Corporation Law, and applicable provisions of the Delaware Constitution
and reported judicial decisions interpreting these laws.
We
hereby consent to the filing of this opinion as Exhibit 5.1 to the Registration Statement. We also hereby consent to the reference to
our firm under the heading “Legal Matters” in the prospectus relating to the offer and sale of the Securities constituting
part of the Registration Statement. In giving such consent, we do not thereby admit that we are in the category of persons whose consent
is required under Section 7 of the Securities Act.
| |
Very
truly yours, |
| |
|
| |
/s/
Covington & Burling LLP |
Exhibit
5.2
May
15, 2024
Imunon,
Inc.
997
Lenox Drive, Suite 100
Lawrenceville,
NJ 08648
Ladies
and Gentlemen:
We
have acted as counsel to Imunon, Inc., a Delaware corporation (the “Company”), in connection with the registration
by the Company under the Securities Act of 1933, as amended (the “Securities Act”), of the offer and sale of shares
of the Company’s common stock, par value $0.01 per share, having an aggregate offering price of up to $5,500,000 (the “Shares”),
pursuant to the At the Market Offering Agreement, dated May
25, 2022, as amended on May 15, 2024, between the Company and H.C. Wainwright & Co.,
LLC, as sales agent (the “Sales Agreement”). The offer and sale of the Shares are being registered under the
Securities Act pursuant to a Registration Statement on Form S-3 filed with the Securities and Exchange Commission on or about the date
hereof (such registration statement is herein referred to as the “Registration Statement”).
We
have reviewed the Sales Agreement, the Registration Statement and the prospectus included therein with respect to the offer and sale
of the Shares, as filed with the Securities and Exchange Commission on May 15, 2024. We have also reviewed such corporate records, certificates
and other documents, and such questions of law, as we have considered necessary or appropriate for the purposes of this opinion.
We
have assumed that all signatures are genuine, that all documents submitted to us as originals are authentic and that all copies of documents
submitted to us conform to the originals.
We
have relied as to certain matters on information obtained from public officials, officers of the Company and other sources believed by
us to be responsible.
Based
upon the foregoing, we are of the opinion that the Shares have been duly authorized, and when issued and sold by the Company pursuant
to the terms of the Sales Agreement and upon receipt by the Company of full payment therefor in accordance with the Sales Agreement,
will be validly issued, fully paid and non-assessable.
We
are members of the bar of the State of Massachusetts. We do not express any opinion herein on any laws other than the Delaware General
Corporation Law and applicable provisions of the Delaware Constitution and reported judicial decisions interpreting these laws.
We
hereby consent to the filing of this opinion as Exhibit 5.2 to the Registration Statement. We also hereby consent to the reference to
our firm under the heading “Legal Matters” in the prospectus relating to the offer and sale of the Shares constituting part
of the Registration Statement. In giving such consent, we do not thereby admit that we are in the category of persons whose consent is
required under Section 7 of the Securities Act.
| |
Very
truly yours, |
| |
|
| |
/s/
Covington & Burling LLP |
EXHIBIT
23.1
CONSENT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
We
hereby consent to the incorporation by reference in the Prospectus constituting a part of this Registration Statement of our report dated
March 27, 2024 (which includes explanatory paragraphs relating to the Company’s ability to continue as a going concern), relating
to the consolidated financial statements of Imunon, Inc. as of December 31, 2023 and 2022 appearing in the entity’s Annual Report
on Form 10-K for the year ended December 31, 2023. We also consent to the reference to us under the caption “Experts” in
the Prospectus.
/s/
WithumSmith+Brown, PC
East
Brunswick, New Jersey
May
15, 2024
Exhibit
107
Calculation
of Filing Fee Tables
Form
S-3
(Form
Type)
Imunon,
Inc.
(Exact
Name of Registrant as Specified in its Charter)
Table
1: Newly Registered and Carry-Forward Securities
| | |
Security Type | |
Security Class Title | |
Fee Calculation Rule | | |
Amount Registered | | |
Proposed Maximum Offering Price Per Unit | | |
Maximum Aggregate Offering Price (1)(2) | | |
Fee Rate | | |
Amount of Registration Fee | | |
Carry Forward Form Type | | |
Carry Forward File Number | | |
Carry Forward Initial Effective Date | | |
Filing Fee Previously Paid In Connection with Unsold Securities to be Carried Forward | |
| Newly Registered Securities | |
| Fees to be Paid | |
Equity | |
Common stock, par value $0.01 per share | |
| 457(o) | | |
| (3 | ) | |
| (3 | ) | |
| (3 | ) | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| | |
Equity | |
Preferred stock, par value $0.01 per share | |
| 457(o) | | |
| (3 | ) | |
| (3 | ) | |
| (3 | ) | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| | |
Debt | |
Debt Securities (4) | |
| 457(o) | | |
| (3 | ) | |
| (3 | ) | |
| (3 | ) | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| | |
Equity | |
Warrants | |
| 457(o) | | |
| (3 | ) | |
| (3 | ) | |
| (3 | ) | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| | |
Other | |
Rights | |
| 457(o) | | |
| (3 | ) | |
| (3 | ) | |
| (3 | ) | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| | |
Other | |
Units | |
| 457(o) | | |
| (3 | ) | |
| (3 | ) | |
| (3 | ) | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| | |
Unallocated (Universal) Shelf | |
| |
| 457(o) | | |
| (3 | ) | |
| (3 | ) | |
| $75,000,000.00 (5 | ) | |
| 0.00014760 | | |
$ | 11,070.00 | | |
| | | |
| | | |
| | | |
| | |
| Carry Forward Securities | |
| Carry Forward Securities | |
| |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| | |
| |
| |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | |
| | |
Total Offering Amount | | |
| | | |
$ | 75,000,000 | | |
| 0.00014760 | | |
$ | 11,070.00 | | |
| | | |
| | | |
| | | |
| | |
| | |
Total Fees Previously Paid | | |
| | | |
| | | |
| | | |
| N/A | | |
| | | |
| | | |
| | | |
| | |
| | |
Total Fee Offsets | | |
| | | |
| | | |
| | | |
| $10,123.76 (6 | ) | |
| | | |
| | | |
| | | |
| | |
| | |
Net Fee Due | | |
| | | |
| | | |
| | | |
$ | 946.24 | | |
| | | |
| | | |
| | | |
| | |
| |
(1) |
Pursuant
to Rule 416(a) promulgated under the Securities Act of 1933, as amended (the “Securities Act”), this Registration Statement
shall also cover any additional shares of common stock of Imunon, Inc. (the “Registrant”) that become issuable with respect
of the securities identified in the above table by reason of any stock dividend, stock split, recapitalization or other transaction
effected without the Registrant’s receipt of consideration that results in an increase in the number of outstanding shares
of Registrant’s common stock. |
| |
|
|
| |
(2) |
Estimated
solely for the purpose of calculating the amount of the registration fee in pursuant to Rule 457(o) under the Securities Act. |
| |
(3) |
An
indeterminate number or aggregate principal amount, as applicable, of securities of each identified class is being registered as
may from time to time be offered on a primary basis at indeterminate prices, including an indeterminate number or amount of securities
that may be issued upon the exercise, settlement, exchange or conversion of securities offered hereunder, which together shall have
an aggregate initial offering price not to exceed $75,000,000. Separate consideration may or may not be received for securities that
are issuable upon conversion of, or in exchange for, or upon exercise of, convertible or exchangeable securities. |
| |
|
|
| |
(4) |
If
any debt securities are issued at an original issue discount, the offering price of such debt securities shall be in such greater
principal amount at maturity as shall result in an aggregate offering price not to exceed $75,000,000, less the aggregate dollar
amount of all securities previously issued hereunder. |
| |
|
|
| |
(5) |
Estimated
solely for purposes of calculating the registration fee. Subject to Rule 462(b) under the Securities Act, the aggregate initial offering
price of all securities issued by the Registrant pursuant to the unallocated universal shelf base prospectus (inclusive of any shares
of common stock of the Registrant issued pursuant to the sales agreement prospectus) will not exceed $75,000,000. |
| |
|
|
| |
(6) |
Represents
the total of the fee offsets claimed pursuant to Rule 457(p) under the Securities Act for the portion of registration fee previously
paid with respect to unsold securities, as set forth in Table 2. The Registrant has terminated the offerings related to the unsold
securities associated with the claimed offset. |
Table
2: Fee Offset Claims and Sources
| | |
Registrant or
Filer Name | |
Form or
Filing
Type | |
File
Number | |
Initial
Filing
Date | |
Filing
Date | |
Fee
Offset
Claimed | | |
Security
Type
Associated
with Fee
Offset
Claimed | |
Security
Title
Associated
with Fee
Offset
Claimed | |
Unsold
Securities
Associated
with Fee
Offset
Claimed | |
Unsold
Aggregate
Offering
Amount
Associated
with Fee
Offset
Claimed | | |
Fee Paid
with Fee
Offset
Source | |
| Rule 457(p) | |
| Fee Offset Claims | |
Imunon, Inc. | |
S-1 | |
333-276174 | |
December 20, 2023 | |
| |
$ | 3,542.40 ( | 1) | |
Equity | |
Common stock, par value $0.01 per share | |
Common stock, par value $0.01 per share | |
$ | 8,000,000.00 | | |
$ | 1,180.80 | |
| | |
Imunon, Inc. | |
S-1 | |
333-276174 | |
December 20, 2023 | |
| |
| | | |
Equity | |
Common Stock issuable upon exercise of Series A and Series B warrants | |
Common Stock issuable upon exercise of Series A and Series B warrants | |
$ | 16,000,000.00 | | |
$ | 2,361.60 | |
| | |
Imunon, Inc. | |
S-3 | |
333-254515 | |
March 19, 2021 | |
| |
$ | 6,581.36 ( | 2) | |
Unallocated (Universal) Shelf | |
Unallocated (Universal) Shelf | |
Unallocated (Universal) Shelf | |
$ | 60,324,149.70 | | |
| | |
| Fees Offset Sources | |
Imunon, Inc. | |
RW | |
333-276174 | |
| |
February 9, 2024 | |
| | | |
| |
| |
| |
| | | |
$ | 3,542.40 | |
| | |
Imunon, Inc. | |
S-3 | |
333-254515 | |
| |
March 19, 2021 | |
| | | |
| |
| |
| |
| | | |
$ | 10,910.00 | |
| Total Fee Offset Claims | |
| |
| |
| |
| |
| |
$ | 10,123.76 | | |
| |
| |
| |
| | | |
| | |
| |
(1) |
This
offset claim relates to a registration statement on Form S-1 filed by the registrant on December 20, 2023 (File No. 333-276174),
as amended on January 18, 2024 and February 9, 2024, registering up to $24,000,000 in aggregate principal amount of shares of common
stock and warrants for sale by the Registrant (the “Prior S-1 Registration Statement”). The Prior S-1 Registration Statement
was withdrawn by the Registrant on April 10, 2024. The Prior S-1 Registration Statement was
not declared effective by the Securities and Exchange Commission, and no securities were issued or sold thereunder. As a result,
the registrant has $24,000,000 of unsold securities and $3,542.40 in unused filing fees associated with the Prior S-1 Registration
Statement. In accordance with Rule 457(p) under the Securities Act, the Registrant is using the unused filing fees to offset the
filing fee payable in connection with this filing. |
| |
|
|
| |
(2) |
On
March 19, 2021, the Registrant initially filed a Registration Statement on Form S-3 (File No. 333- 254515) (the “Prior S-3
Registration Statement”), which registered an aggregate amount of $100,000,000 of common stock, preferred stock, debt securities,
warrants, rights and units to be offered by the Registrant from time to time. $39,675,850.30 of securities were sold pursuant to
the Prior S-3 Registration Statement, and the Prior S-3 Registration Statement expired on March 30, 2024, and all offerings thereunder
have been completed or terminated. As a result, the registrant has $60,324,149.70 of unsold securities and $6,581.36 in unused filing
fees associated with the Prior S-3 Registration Statement. In accordance with Rule 457(p) under the Securities Act, the Registrant
is using the unused filing fees to offset the filing fee payable in connection with this filing. |
Imunon (NASDAQ:IMNN)
過去 株価チャート
から 4 2024 まで 5 2024
Imunon (NASDAQ:IMNN)
過去 株価チャート
から 5 2023 まで 5 2024
