Item 1.01 Entry into a Material Definitive Agreement.
As previously reported, Endologix, Inc. ("Endologix") entered into a Loan and Security Agreement (the "Agreement") with Silicon Valley Bank ("SVB"), dated as of February 21, 2007, as amended July 22, 2008, pursuant to which Endologix may borrow up to $5,000,000 under a revolving credit facility and SVB may advance up to $3,000,000 under a term line.
On March 3, 2009, Endologix and SVB entered in a Second Amendment to Loan and Security Agreement ("the "Second Amendment") to, among other things, modify the financial covenant contained in the Agreement relating to Endologix's tangible net worth in the event that Endologix fails to comply with the existing financial covenants (a "Default"). The Second Amendment also provides that upon a Default interest due on any principal amount under the revolving credit facility will increase from a rate equal to SVB's prime rate plus 0.50% to a rate equal to the greater of (a) SVB's prime rate plus 1.50% or (b) 5.50%, and the interest due on the principal amount of any advances under the term line will increase from a rate equal to SVB's prime rate plus 1.00% to a rate equal to the greater of (y) SVB's prime rate plus 2.00% or (z) 6.00%. In addition, the Second Amendment limits the amount available for borrowing under the revolving credit facility following a Default based on eligible accounts receivable and inventory.
The foregoing description of the Second Amendment does not purport to be complete and is qualified in its entirety by reference to the Second Amendment, a copy of which is filed hereto as Exhibit 10.1 and incorporated herein by reference.
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
See the disclosure under Item 1.01 of this Current Report on Form 8-K, which is incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.

Exhibit Number Description 10.1 Second Amendment to Loan and Security Agreement, dated as of March 3, 2009, by and between Endologix and Silicon Valley Bank.

---

Table of Contents