SEC Contract Filing

Filing Date: 2018-08-10

Document Content:
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<TYPE>EX-10.7
<SEQUENCE>19
<FILENAME>d372800dex107.htm
<DESCRIPTION>EX-10.7
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<TITLE>EX-10.7</TITLE>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>Exhibit 10.7 </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right">Execution Version </P>
<P STYLE="margin-top:24pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B><U>INTERCOMPANY SUBORDINATION AGREEMENT </U></B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">THIS INTERCOMPANY SUBORDINATION AGREEMENT (this &#147;<B><I>Subordination</I></B> <B><I>Agreement</I></B>&#148;), dated as of August&nbsp;9,
2018 is made among the companies from time to time party hereto (the &#147;<B><I>Companies</I></B>&#148;), and <B>Deerfield ELGX Revolver, LLC</B>, a Delaware limited liability company, as agent (in such capacity, together with its successors and
assigns in such capacity, the &#147;<B><I>Agent</I></B>&#148;) for the Lender Group (as defined in the below-defined Credit Agreement). </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">WHEREAS, Endologix, Inc., a Delaware corporation (&#147;<B><I>Endologix</I></B>&#148;), each of its direct and indirect Subsidiaries set forth
on the signature pages thereto and any additional borrower that may be thereafter be added thereto (together with Endologix, the &#147;<B><I>Borrowers</I></B>&#148; and each individually, a &#147;<B><I>Borrower</I></B>&#148;), the lenders from time
to time party thereto (the &#147;<B><I>Lenders</I></B>&#148;) and Agent are parties to that certain Credit Agreement, dated as of even date herewith (as amended, restated, supplemented or otherwise modified from time to time, the &#147;<B><I>Credit
Agreement</I></B>&#148;), pursuant to which the Lenders have provided Revolver Commitments and have made Loans and/or other financial accommodations to the Borrowers; </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">WHEREAS, the Companies have entered into that certain Guaranty and Security Agreement, dated as of even date herewith (as amended, restated,
supplemented or otherwise modified from time to time, the &#147;<B><I>Guaranty and Security Agreement</I></B>&#148;), in favor of Agent, pursuant to which such Companies (together with any other Person (as defined in the below-defined Credit
Agreement) who is a &#147;Guarantor,&#148; as defined in the Credit Agreement, the &#147;<B><I>Guarantors</I></B>;&#148; the &#147;<B><I>Obligors</I></B>&#148;) have guaranteed the obligations (including any Liquidated Damages, any Applicable
Revolver Reduction Premium, the remaining Commitment Fee and the other Obligations) of the Borrowers and the other Companies under the Credit Agreement and the other Loan Documents; </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">WHEREAS, each Company has made or may make certain loans or advances from time to time to one or more Obligors; and </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">WHEREAS, in order to induce the Agent and the Lenders to make the Loans and other financial accommodations and provide for Revolver
Commitments under the Loan Documents, each Company has agreed to the subordination of such indebtedness of each Obligor to such Company, upon the terms and subject to the conditions set forth in this Subordination Agreement. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">NOW, THEREFORE, in consideration of the mutual promises, covenants, conditions, representations, and warranties set forth herein and for other
good and valuable consideration, the parties hereto agree as follows: </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">SECTION 1. <U>Definitions; Interpretation</U>. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(a) <U>Terms Defined in Credit Agreement</U>. All capitalized terms used in this Subordination Agreement and not otherwise defined herein
shall have the meanings assigned to them in the Credit Agreement. </P>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">(b) <U>Certain Defined Terms</U>. As used in this Subordination Agreement, the following
terms shall have the following meanings: </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">&#147;<B><I>Discharge of Senior Indebtedness</I></B>&#148; means the payment in cash of all
amounts owing on account of the outstanding principal amount of the Loans and any other Obligations (including any Liquidated Damages, any Applicable Revolver Reduction Premium and the remaining Commitment Fee) owing by the Borrowers and the other
Loan Parties to the Lender Group pursuant to the Loan Documents and the termination of all of the Commitments; <U>provided</U> that the foregoing shall be subject to the second sentence of Section&nbsp;17.07 of the Credit Agreement and
<U>Section</U><U></U><U>&nbsp;10(b)</U>. </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:8%; font-size:10pt; font-family:Times New Roman">&#147;<B><I>Insolvency Events</I></B>&#148; has the meaning set forth in
<U>Section</U><U></U><U>&nbsp;3</U>. </P> <P STYLE="margin-top:12pt; margin-bott