(a) An offer or sale of securities by the , a , any of their respective affiliates, or any person on behalf of any of the foregoing, shall be deemed to occur outside the within the meaning of § 230.901 if:
(1) The offer or sale is made in an ;
(2) No are made in the by the , a , any of their respective affiliates, or any person on behalf of any of the foregoing; and
(3) The of paragraph (b) of this section, as applicable, are satisfied.
(b)Additional conditions -
(1)Category 1. No other than those set forth in § 230.903(a) apply to securities in this category. Securities are eligible for this category if:
(i) The securities are issued by a that reasonably believes at the commencement of the offering that:
(A) There is no in the class of securities to be offered or sold (if equity securities are offered or sold);
(B) There is no in its (if are offered or sold);
(C) There is no in the securities to be purchased upon exercise (if warrants are offered or sold); and
(D) There is no in either the convertible securities or the underlying securities (if convertible securities are offered or sold);
(ii) The securities are offered and sold in an overseas directed offering, which means:
(A) An offering of securities of a that is directed into a single country other than the to the residents thereof and that is made in accordance with the local laws and customary practices and documentation of such country; or
(B) An offering of non-convertible of a domestic that is directed into a single country other than the to the residents thereof and that is made in accordance with the local laws and customary practices and documentation of such country, provided that the principal and interest of the securities (or par value, as applicable) are denominated in a currency other than U.S. dollars and such securities are neither convertible into U.S. dollar-denominated securities nor linked to U.S. dollars (other than through related currency or interest rate swap transactions that are commercial in nature) in a manner that in effect converts the securities to U.S. dollar-denominated securities.
(iii) The securities are backed by the full faith and credit of a ; or
(iv) The securities are offered and sold to of the or its pursuant to an established and administered in accordance with the law of a country other than the , and customary practices and documentation of such country, provided that:
(A) The securities are issued in compensatory circumstances for services rendered to the or its in connection with their businesses and such services are not rendered in connection with the offer or sale of securities in a capital-raising transaction;
(B) Any interests in the are not transferable other than by will or the laws of descent or ;
(C) The takes reasonable steps to preclude the offer and sale of interests in the or securities under the to U.S. residents other than on temporary assignment in the ; and
(D) Documentation used in connection with any offer pursuant to the contains a statement that the securities have not been registered under the and may not be offered or sold in the unless registered or an exemption from registration is available.
(2)Category 2. The following apply to securities that are not eligible for Category 1 (paragraph (b)(1)) of this section and that are equity securities of a reporting , or of a or of a non-reporting .
(i) are implemented;
(ii) The offer or sale, if made prior to the expiration of a 40-day , is not made to a U.S. person or for the account or benefit of a U.S. person (other than a distributor); and
(iii) Each selling securities to a , a dealer, as defined in section 2(a)(12) of the ( 15 U.S.C. 77b(a)(12)), or a person receiving a selling concession, fee or other remuneration in respect of the securities sold, prior to the expiration of a 40-day , sends a confirmation or other notice to the purchaser stating that the purchaser is subject to the same restrictions on offers and sales that apply to a .
(3)Category 3. The following apply to securities that are not eligible for Category 1 or 2 (paragraph (b)(1) or (b)(2)) of this section:
(i) are implemented;
(ii) In the case of debt securities:
(A) The offer or sale, if made prior to the expiration of a 40-day , is not made to a U.S. person or for the account or benefit of a U.S. person (other than a distributor); and
(B) The securities are represented upon issuance by a temporary global which is not exchangeable for definitive securities until the expiration of the 40-day and, for persons other than distributors, until certification of beneficial ownership of the securities by a non-U.S. person or a U.S. person who purchased securities in a transaction that did not require registration under the ;
(iii) In the case of equity securities:
(A) The offer or sale, if made prior to the expiration of a one-year (or six-month if the is a reporting issuer), is not made to a U.S. person or for the account or benefit of a U.S. person (other than a distributor); and
(B) The offer or sale, if made prior to the expiration of a one-year (or six-month if the is a reporting issuer), is made pursuant to the following conditions:
(1) The purchaser of the securities (other than a distributor) certifies that it is not a U.S. person and is not acquiring the securities for the account or benefit of any U.S. person or is a U.S. person who purchased securities in a transaction that did not require registration under the ;
(2) The purchaser of the securities agrees to resell such securities only in accordance with the provisions of this Regulation S (§ 230.901 through § 230.905, and Preliminary Notes), pursuant to registration under the , or pursuant to an available exemption from registration; and agrees not to engage in hedging transactions with regard to such securities unless in compliance with the ;
(3) The securities of a domestic contain a legend to the effect that transfer is prohibited except in accordance with the provisions of this Regulation S (§§ 230.901 through 230.905, and Preliminary Notes), pursuant to registration under the , or pursuant to an available exemption from registration; and that hedging transactions involving those securities may not be conducted unless in compliance with the ;
(4) The is required, either by contract or a provision in its bylaws, articles, or comparable document, to refuse to register any transfer of the securities not made in accordance with the provisions of this Regulation S (§§ 230.901 through 230.905, and Preliminary Notes), pursuant to registration under the , or pursuant to an available exemption from registration; provided, however, that if the securities are in bearer form or foreign law prevents the of the securities from refusing to register securities transfers, other reasonable procedures (such as a legend described in paragraph (b)(3)(iii)(B)(3) of this section) are implemented to prevent any transfer of the securities not made in accordance with the provisions of this Regulation S; and
(iv) Each selling securities to a , a dealer (as defined in section 2(a)(12) of the ( 15 U.S.C. 77b(a)(12)), or a person receiving a selling concession, fee or other remuneration, prior to the expiration of a 40-day in the case of , or a one-year (or six-month if the is a reporting issuer) in the case of equity securities, sends a confirmation or other notice to the purchaser stating that the purchaser is subject to the same restrictions on offers and sales that apply to a .
(4)Guaranteed securities. Notwithstanding paragraphs (b)(1) through (b)(3) of this section, in offerings of fully and unconditionally guaranteed as to principal and interest by the of the of the , only the requirements of paragraph (b) of this section that are applicable to the offer and sale of the guarantee must be satisfied with respect to the offer and sale of the guaranteed .
(5)Warrants. An offer or sale of warrants under Category 2 or 3 (paragraph (b)(2) or (b)(3)) of this section also must comply with the following requirements:
(i) Each warrant must bear a legend stating that the warrant and the securities to be issued upon its exercise have not been registered under the and that the warrant may not be exercised by or on behalf of any U.S. person unless registered under the or an exemption from such registration is available;
(ii) Each person exercising a warrant is required to give:
(A) Written certification that it is not a U.S. person and the warrant is not being exercised on behalf of a U.S. person; or
(B) A written opinion of counsel to the effect that the warrant and the securities delivered upon exercise thereof have been registered under the or are exempt from registration thereunder; and
(iii) Procedures are implemented to ensure that the warrant may not be exercised within the , and that the securities may not be delivered within the upon exercise, other than in offerings deemed to meet the definition of “offshore transaction” pursuant to § 230.902(h), unless registered under the or an exemption from such registration is available.