Document:

exv4w1

 

Exhibit 4.1

AMENDMENT NO. 2 TO RIGHTS AGREEMENT

     This Amendment no. 2 to Rights Agreement is entered into as of November 1, 2007 (the
“Amendment”) by and between Aspect Medical Systems, Inc., a Delaware corporation (the “Company”)
and Computershare Trust Company, N.A., formerly EquiServe Trust Company, N.A., a national banking
association, as Rights Agent (the “Rights Agent”).

     Whereas, the Company and the Rights Agent are parties to that certain Rights
Agreement dated November 29, 2004 (the “Rights Agreement”), as amended on May 23, 2005;

     Whereas, the Rights (as defined in the Whereas clause at the beginning of
the Rights Agreement) are still redeemable; and

     Whereas, the Company has directed the Rights Agent to enter into this Amendment No. 2
pursuant to Section 27 of the Rights Agreement;

     Now, Therefore, in consideration of the premises and mutual agreements set forth
herein, the parties agree as follows:

     1. Section 1 (e) of the Rights Agreement is hereby amended by deleting such section in its
entirety and substituting therefore the following:

     A Person shall be deemed the “Beneficial Owner” of, and shall be deemed to “beneficially
own,” any securities:

     (i) which such Person or any of such Person’s Affiliates or Associates, directly or
indirectly, owns or has the right to acquire (whether such right is exercisable immediately,
only after the passage of time, or after the occurrence of other events) pursuant to any
agreement, arrangement or understanding (other than customary agreements with and between
underwriters and selling group members with respect to a bona fide public offering of
securities or agreements with or between Persons and the Company with respect to any other
bona fide issuance of securities by the Company to such Persons for resale within 40 days,
including without limitation pursuant to Section 4(2) of the Act or Rule 144A or Regulation S
promulgated under the Act), whether or not in writing, or upon the exercise of conversion
rights, exchange rights, other rights, warrants or options, or otherwise; provided, however,
that a Person shall not be deemed the “Beneficial Owner” of, or to “beneficially own,” (A)
securities tendered pursuant to a tender or exchange offer made by or on behalf of such
Person or any of such Person’s Affiliates or Associates until such tendered securities are
accepted for purchase or exchange, or (B) securities issuable upon exercise of Rights at any
time prior to the occurrence of a Triggering Event, or (C) securities issuable upon exercise
of Rights from and after the occurrence of a Triggering Event which Rights were acquired by
such Person or any of such Person’s Affiliates or Associates prior to the Distribution Date
or pursuant to Section 3(a) or Section 22 hereof (the “Original Rights”) or pursuant to
Section 11(i) hereof in connection with an adjustment made with respect to any Original
Rights;

     (ii) which such Person or any of such Person’s Affiliates or Associates, directly or
indirectly, has the right to vote or dispose of or has “beneficial ownership” of (as
determined pursuant to Rule 13d-3 of the General Rules and Regulations under the Exchange
Act, or any comparable or successor rule), including pursuant to any agreement, arrangement
or

 

 

understanding (other than customary agreements with and between underwriters and selling
group members with respect to a bona fide public offering of securities or agreements with or
between Persons and the Company with respect to any other bona fide issuance of securities by
the Company to such Persons for resale within 40 days, including without limitation pursuant
to Section 4(2) of the Act or Rule 144A or Regulation S promulgated under the Act), whether
or not in writing; provided, however, that a Person shall not be deemed the “Beneficial
Owner” of, or to “beneficially own,” any security under this subparagraph (ii) as a result of
an agreement, arrangement or understanding to vote such security if such agreement,
arrangement or understanding: (A) arises solely from a revocable proxy or consent given in
response to a public proxy or consent solicitation made pursuant to, and in accordance with,
the applicable provisions of the General Rules and Regulations under the Exchange Act, and (B) is not
then reportable by such Person on Schedule 13D under the Exchange Act (or any comparable or
successor report); or

     (iii) which are beneficially owned, directly or indirectly, by any other Person (or any
Affiliate or Associate thereof) with which such Person (or any of such Person’s Affiliates or
Associates) has any agreement, arrangement or understanding (other than customary agreements
with and between underwriters and selling group members with respect to a bona fide public
offering of securities or agreements with or between Persons and the Company with respect to
any other bona fide issuance of securities by the Company to such Persons for resale within
40 days, including without limitation pursuant to Section 4(2) of the Act or Rule 144A or
Regulation S promulgated under the Act) whether or not in writing, for the purpose of
acquiring, holding, voting (except pursuant to a revocable proxy or consent as described in
the proviso to subparagraph (ii) of this paragraph (e)) or disposing of any voting securities
of the Company.

For all purposes of this Agreement, when making any calculation of the number of shares of
Common Stock outstanding at any particular time, including for purposes of determining the
particular percentage of such outstanding shares of Common Stock of which any Person is the
Beneficial Owner, any securities not outstanding which are subject to options, warrants,
rights or conversion privileges shall be deemed to be outstanding for the purpose of
computing the percentage of outstanding securities of the class owned by such Person,
including for purposes of determining the particular percentage of such outstanding shares of
Common Stock of which any Person is the Beneficial Owner, but shall not be deemed to be
outstanding for the purpose of computing the percentage of the class by any other Person.

     2. Section 1(r) of the Rights Agreement is hereby amended by deleting such section in its
entirety and substituting therefore the following:

          (r) “Exempted Person” shall mean any Person that would be deemed an Acquiring Person
solely as a result of being the Beneficial Owner of shares of Common Stock issuable (but not
yet issued) upon conversion or exchange of the Company’s 2.50% Convertible Senior Notes due
2014 (the “Notes”), unless and until such time as such Person, together with its Affiliates
and Associates, directly or indirectly, becomes the Beneficial Owner of 21.0% or more of the
shares of Common Stock then outstanding (other than under the circumstances described in the
second sentence of Section 1(a) hereof (replacing for this purpose all references in Section
1(a) to 17.5% with 21.0%)), in which event each Person immediately shall cease to be an
Exempted Person.

 

 

     3.
Section 3(a) of the Rights Agreement is hereby amended by deleting such section in its
entirety and substituting therefore the following:

	 	 	“(a) 	Until the earlier of (i) the close of business on the tenth Business Day (or
such later date as may be determined by the Board) after the Stock Acquisition Date
(or, if the tenth Business Day after the Stock Acquisition Date occurs before the
Record Date, the close of business on the Record Date), or (ii) the close of business
on the tenth Business Day (or such later date as may be determined by action of the
Board) after the date that a tender or exchange offer (other than a Permitted Offer) by
any Person (other than the Company, any Subsidiary of the Company, any employee benefit
plan of the Company or of any Subsidiary of the Company, or any Person organized,
appointed or established by the Company for or pursuant to the terms of any such plan)
is first published or sent or given within the meaning of Rule 14d-2 of the General
Rules and Regulations under the Exchange Act, if upon consummation thereof, such Person
would be an Acquiring Person (the earlier of (i) and (ii) being herein referred to as
the “Distribution Date”), (x) the Rights will be evidenced by the certificates for the
Common Stock registered in the names of the holders of the Common Stock (which
certificates for Common Stock shall be deemed also to be certificates for Rights) and
not by separate certificates, and (y) the Rights will be transferable only in
connection with the transfer of the underlying shares of Common Stock (including a
transfer to the Company). As soon as practicable after the Distribution Date, the
Rights Agent will send by first-class, insured, postage prepaid mail, to each record
holder of the Common Stock as of the close of business on the Distribution Date, at the
address of such holder shown on the records of the Company, one or more rights
certificates, in substantially the form of Exhibit B hereto (the “Rights
Certificates”), evidencing one Right for each share of Common Stock so held, subject to adjustment as provided herein. With respect
to certificates for the Common Stock outstanding as of the close of business on the
Record Date, until the Distribution Date, the Rights will be evidenced by such
certificates for the Common Stock and the registered holders of the Common Stock shall
also be the registered holders of the associated Rights. In addition, in connection
with the issuance or sale of shares of Common Stock following the Distribution Date and
prior to the redemption or expiration of the Rights, the Company (i) shall, with
respect to shares of Common Stock so issued or sold pursuant to the exercise of stock
options or under any employee benefit plan or arrangement, or upon the exercise,
conversion or exchange of securities granted or issued by the Company prior to the
Distribution Date, and (ii) may, in any other case, if deemed necessary or appropriate
by the Board, issue Rights Certificates representing the appropriate number of Rights
in connection with such issuance or sale; provided, however, that (x) no such Rights
Certificate shall be issued if, and to the extent that, the Company shall be advised by
counsel that such issuance would create a significant risk of material adverse tax
consequences to the Company or the Person to whom such Rights Certificate would be
issued, and (y) no such Rights Certificate shall be issued if, and to the extent that,
appropriate adjustment shall otherwise have been made in lieu of the issuance thereof.
In the event that an adjustment in the number of Rights per share of Common Stock has
been made pursuant to Sections 11(i) or 11(p) hereof, at the time of distribution of
the Rights Certificates, the Company shall make the necessary and appropriate rounding
adjustments (in accordance with Section 14(a) hereof) so that Rights Certificates
representing only whole numbers of Rights are distributed and cash is paid in lieu of
any fractional Rights. As of and after the Distribution Date, the Rights will be
evidenced solely by such Rights Certificates.

     4.
The Rights Agreement, as supplemented and modified by this Amendment, together with the
other writings referred to in the Rights Agreement or delivered pursuant thereto which form a part
thereof, contain the entire agreement among the parties with respect to the subject matter thereof
and amend, restate and supersede all prior and contemporaneous arrangements or understandings with
respect thereto.

 

 

     5. Upon the effectiveness of this Amendment, on and after the date hereof, each reference in
the Rights Agreement to “this Agreement, “hereunder,” “hereof,” “herein” or words of like import,
shall mean and be a reference to the Rights Agreement, as amended hereby. Except as specifically
amended above, the Rights Agreement shall remain in full force and effect and is hereby ratified
and confirmed.

     6. This Amendment shall be governed by the laws of the State of Delaware, exclusive of its
choice of law and conflicts of law rules.

     7. This Amendment may be executed in any number of counterparts, and each such
counterpart shall be deemed to be an original instrument, but all such counterparts together
shall constitute but one agreement.

[END OF TEXT]

 

 

     In Witness Whereof, the parties have duly executed this Amendment No. 2 to Rights
Agreement, intending that it be executed under seal, as of the date first written above.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	ASPECT MEDICAL SYSTEMS, INC.	 	 	 	Computershare Trust Company, N.A.,	 	 
	 	 	 	 	 	 	AS RIGHTS AGENT
	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Nassib Chamoun
	 	 	 	By:
	 	/s/ Dennis V. Moccia	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	Nassib Chamoun	 	 	 	 	 	Name: Dennis V. Moccia	 	 
	 	 	President and Chief Executive Officer	 	 	 	 	 	Title: Managing Directorexv10w1

 

Exhibit 10.1

TWELFTH LOAN MODIFICATION AGREEMENT

     This Twelfth Loan Modification Agreement (this “Loan Modification Agreement”) is entered into
as of September 25, 2007, by and between SILICON VALLEY BANK, a California corporation, with its
principal place of business at 3003 Tasman Drive, Santa Clara, California 95054 and with a loan
production office located at One Newton Executive Park, Suite 200, 2221 Washington Street, Newton,
Massachusetts 02462 (“Bank”) and ART TECHNOLOGY GROUP, INC., a Delaware corporation with its
principal place of business at 25 First Street, Cambridge, Massachusetts 02141 (“Borrower”).

1. DESCRIPTION OF EXISTING INDEBTEDNESS AND OBLIGATIONS. Among other indebtedness and
obligations which may be owing by Borrower to Bank, Borrower is indebted to Bank pursuant to a loan
arrangement dated as of June 13, 2002, evidenced by, among other documents, a certain Amended and
Restated Loan and Security Agreement dated as of June 13, 2002, between Borrower and Bank, as
amended by a certain First Loan Modification Agreement dated as of September 27, 2002, as further
amended by a certain Amendment dated as of October 4, 2002, as further amended by a certain Second
Loan Modification Agreement dated as of December 24, 2002, as further amended by a certain Third
Loan Modification Agreement dated as of October 20, 2003, as further amended by a certain Fourth
Loan Modification Agreement dated November 26, 2003, as further amended by a certain Letter
Agreement dated June 16, 2004, as further amended by a certain Fifth Loan Modification Agreement
dated June 30, 2004, as amended by a certain Sixth Loan Modification Agreement dated November 24,
2004, as amended by a certain Seventh Loan Modification Agreement dated December 21, 2004, as
amended by a certain Eighth Loan Modification Agreement dated December 30, 2005, as further amended
by a certain Ninth Loan Modification Agreement dated as of February 10, 2006, and effective as of
February 7, 2006, as further amended by a certain Tenth Loan Modification Agreement dated as of
October 4, 2006, and as further amended by a certain Eleventh Loan Modification Agreement dated as
of May 7, 2007 (as amended, the “Loan Agreement”). Capitalized terms used but not otherwise
defined herein shall have the same meaning as in the Loan Agreement.

2. DESCRIPTION OF COLLATERAL. Repayment of the Obligations is secured by the Collateral as
described in the Loan Agreement (together with any other collateral security granted to Bank, the
“Security Documents”).

Hereinafter, the Security Documents, together with all other documents evidencing or securing the
Obligations shall be referred to as the “Existing Loan Documents”.

3. DESCRIPTION OF CHANGE IN TERMS.

	 	A.	 	Modifications to Loan Agreement.

	 	1.	 	The Loan Agreement shall be amended by deleting the following
text, appearing in Section 6.2 thereof:

“ (a) Borrower shall deliver to Bank: (i) as soon as available, but
no later than five (5) days after filing, copies of all of Borrower’s
reports on Form 10-Q and Form 10-K filed with the Securities and
Exchange Commission, (ii) as soon as available, but no later than
ninety (90) days after the last day of Borrower’s fiscal year,
Borrower’s operating plan, including balance sheet and income
statement, reflecting projections on a quarterly basis for the
upcoming fiscal year, as approved by Borrower’s board of directors,
(iii) as soon as available, but no later than one hundred twenty
(120) days after the last day of Borrower’s fiscal year, audited
consolidated financial statements prepared under GAAP, consistently
applied, together with an unqualified opinion on the financial
statements from an independent certified public accounting firm
reasonably acceptable to Bank; (iv) a prompt report of any legal
actions pending or threatened against Borrower or any Subsidiary that
could result in damages or costs to Borrower or any Subsidiary of
Seven Hundred Fifty Thousand Dollars

 

 

($750,000.00) or more; and (v) other financial information reasonably
requested by Bank.”

	 	 	 	and inserting in lieu thereof the following:

“ (a) Borrower shall deliver to Bank: (i) as soon as available, but
no later than five (5) days after filing, copies of all of Borrower’s
reports on Form 10-Q and Form 10-K filed with the Securities and
Exchange Commission, (ii) as soon as available, but no later than
ninety (90) days after the last day of Borrower’s fiscal year,
Borrower’s operating plan, including balance sheet and income
statement, reflecting projections on a quarterly basis for the
upcoming fiscal year, as approved by Borrower’s board of directors,
(iii) a prompt report of any legal actions pending or threatened
against Borrower or any Subsidiary that could result in damages or
costs to Borrower or any Subsidiary of Seven Hundred Fifty Thousand
Dollars ($750,000.00) or more; and (iv) other financial information
reasonably requested by Bank.”

	 	2.	 	The Compliance Certificate appearing as Exhibit D to
the Loan Agreement is hereby replaced with the Compliance Certificate attached
as Exhibit A hereto.

	 	B.	 	Waiver. Bank hereby waives Borrower’s existing default under the Loan
Agreement by virtue of Borrower’s failure to comply with the financial covenant set
forth in Section 6.7(b) thereof as of and for the quarter ended June 30, 2007. Bank’s
waiver of Borrower’s compliance of said affirmative covenant shall apply only to the
foregoing specific period.

4. FEES. Borrower shall pay to Bank a modification fee equal to Five Thousand Dollars
($5,000.00), which fee shall be due on the date hereof and shall be deemed fully earned as of the
date hereof. Borrower shall also reimburse Bank for all reasonable legal fees and expenses
incurred in connection with this amendment to the Existing Loan Documents.

5. RATIFICATION OF PERFECTION CERTIFICATE. Borrower hereby ratifies, confirms and
reaffirms, all and singular, the terms and disclosures contained in a certain Perfection
Certificate dated as of June 13, 2002 between Borrower and Bank, and acknowledges, confirms and
agrees the disclosures and information Borrower provided to Bank in said Perfection Certificate
have not changed, as of the date hereof.

6. CONSISTENT CHANGES. The Existing Loan Documents are hereby amended wherever necessary
to reflect the changes described above.

7. RATIFICATION OF LOAN DOCUMENTS. Borrower hereby ratifies, confirms, and reaffirms all
terms and conditions of all security or other collateral granted to the Bank, and confirms that the
indebtedness secured thereby includes, without limitation, the Obligations.

8. NO DEFENSES OF BORROWER. Borrower agrees that, as of this date, it has no defenses
against the obligations to pay any amounts under the Obligations.

9. CONTINUING VALIDITY. Borrower understands and agrees that in modifying the existing
Obligations, Bank is relying upon Borrower’s representations, warranties, and agreements, as set
forth in the Existing Loan Documents. Except as expressly modified pursuant to this Loan
Modification Agreement, the terms of the Existing Loan Documents remain unchanged and in full force
and effect. Bank’s agreement to modifications to the existing Obligations pursuant to this Loan
Modification Agreement in no way shall obligate Bank to make any future modifications to the
Obligations. Nothing in this Loan Modification Agreement shall constitute a satisfaction of the
Obligations. It is the intention of Bank and Borrower to retain as liable parties all makers of
Existing Loan Documents, unless the party is expressly released by Bank in writing. No maker will
be released by virtue of this Loan Modification Agreement.

 

 

10. COUNTERSIGNATURE. This Loan Modification Agreement shall become effective only when it
shall have been executed by Borrower and Bank.

[The remainder of this page is intentionally left blank]

 

 

     This Loan Modification Agreement is executed as a sealed instrument under the laws of the
Commonwealth of Massachusetts as of the date first written above.

	 	 	 	 	 	 	 	 	 
	BORROWER:

	 	BANK:	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	ART TECHNOLOGY GROUP, INC.

	 	SILICON VALLEY BANK	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By: 	 /s/ Julie M.B. Bradley 	 	By: 	 /s/ Irina Case	 	 	 	 
	

	Name: 	Julie Bradley 	 	 	Name: 	Irina Case 	 	 	 	 
	

	Title: 	CFO 	 		Title: 	SVP 	 	 	 	 

          The undersigned, PRIMUS KNOWLEDGE SOLUTIONS, INC. (“Guarantor”), ratifies, confirms and
reaffirms, all and singular, the terms and conditions of (a) a certain Unlimited Guaranty dated
December 21, 2004 executed by Guarantor in favor of Bank (the “Guaranty”), and (b) a certain
Security Agreement dated as of December 21, 2004 by and between Guarantor and Bank (the “Security
Agreement”), and acknowledges, confirms and agrees that the Guaranty and Security Agreement shall
remain in full force and effect and shall in no way be limited by the execution of this Loan
Modification Agreement, or any other documents, instruments and/or agreements executed and/or
delivered in connection herewith.

	 	 	 	 	 
	 	PRIMUS KNOWLEDGE SOLUTIONS, INC.

 	 
	 	By:  	/s/ Julie M.B. Bradley
 	 
	 	 	Name:  	Julie Bradley 	 
	 	 	Title:  	CFO 	 

 

 

	 	 	 	 	 

EXHIBIT A

COMPLIANCE CERTIFICATE

			
	TO: SILICON VALLEY BANK 

FROM: ART TECHNOLOGY GROUP, INC.
	 	Date:                    

     The undersigned authorized officer of ART TECHNOLOGY GROUP, INC. (“Borrower”) certifies that
under the terms and conditions of the Loan and Security Agreement between Borrower and Bank (the
“Agreement”), (1) Borrower is in complete compliance for the period ending ___with all
required covenants except as noted below, (2) there are no Events of Default, (3) all
representations and warranties in the Agreement are true and correct in all material respects on
this date except as noted below; provided, however, that such materiality qualifier shall not be
applicable to any representations and warranties that already are qualified or modified by
materiality in the text thereof; and provided, further that those representations and warranties
expressly referring to a specific date shall be true, accurate and complete in all material
respects as of such date, (4) Borrower, and each of its Subsidiaries, has timely filed all required
tax returns and reports, and Borrower has timely paid all foreign, federal, state and local taxes,
assessments, deposits and contributions owed by Borrower except as otherwise permitted pursuant to
the terms of Section 5.6 of the Agreement, and (5) no Liens have been levied or claims made against
Borrower relating to unpaid employee payroll or benefits of which Borrower has not previously
provided written notification to Bank. Attached are the required documents supporting the
certification. The undersigned certifies that these are prepared in accordance with GAAP
consistently applied from one period to the next except as explained in an accompanying letter or
footnotes. The undersigned acknowledges that no borrowings may be requested at any time or date of
determination that Borrower is not in compliance with any of the terms of the Agreement, and that
compliance is determined not just at the date this certificate is delivered. Capitalized terms
used but not otherwise defined herein shall have the meanings given them in the Agreement.

Please indicate compliance status by circling Yes/No under “Complies” column.

	 	 	 	 	 
	Reporting Covenant	 	Required	 	Complies
	 
	 	 	 	 
	Board approved operating plan

	 	FYE within 90 days
	 	Yes     No
	10-Q and 10-K and CC

	 	Within 5 days after filing with SEC
	 	Yes     No

	 	 	 	 	 	 	 	 	 
	Financial Covenant	 	Required	 	Actual	 	Complies
	 
	 	 	 	 	 	 	 	 
	Maintain at all times (tested):
	 	 	 	 	 	 	 	 
	Minimum Liquidity (quarterly)

	 	$	20,000,000	 	 	$ _________
	 	Yes     No
	Minimum Profitability (quarterly)

	 	 	*	 	 	$ _________
	 	Yes     No

 

			
	* 	 	see Section 6.7(b) of the Loan Agreement

          The following are the exceptions with respect to the certification above: (If no exceptions
exist, state “No exceptions to note.”)

	 	 	 	 	 
	ART TECHNOLOGY GROUP, INC.	 	 
	 
	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 
	 	Title:	 	 	 	 
	 

	 	 	 	 

	 	 

	 	 	 
	BANK USE ONLY	 	 
	Received by:
	 	 	 	 
	 

	 	 	 	 
	 

	 	AUTHORIZED SIGNER	 	 
	Date:
	 	 	 	 
	 

	 	 	 	 
	Verified:
	 	 	 	 
	 

	 	 	 	 
	 

	 	AUTHORIZED SIGNER	 	 
	Date:
	 	 	 	 
	 

	 	 	 	 
	Compliance Status:      
               
          Yes     
                    
No

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