As filed with the Securities and Exchange Commission onJanuary 7, 2005 December 21, 2012

Registration No. 333-

 


UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 


 

FORM S-3

REGISTRATION STATEMENT

UNDER

THE SECURITIES ACT OF 1933

 


 

Faro Technologies, Inc.FARO TECHNOLOGIES, INC.

(Exact name of registrant as specified in its charter)

 

Florida 59-3157093

(State or other jurisdiction of

incorporation or organization)

 

(Primary Standard

Industrial Classification

Code Number)

(I.R.S.IRS Employer Identification No.)Number)


125250 Technology Park Drive

Lake Mary, Florida 32746

(407) 333-9911

(Address, including zip code, and telephone number, including area code, of registrant’s principal executive offices)

 


 

Gregory A. Fraser, Ph.D.Keith S. Bair

ExecutiveSenior Vice President Secretary and TreasurerChief Financial Officer

FARO Technologies, Inc.

125250 Technology Park

Lake Mary, Florida 32746

(407) 333-9911

Fax (407) 333-4181

(Name, address, including zip code, and telephone number, including area code, of agent for service)

 


 

CopyThe Commission is requested to send copies of all communications to:

David C. Lowance, Jr., Esq.

Alston & Bird LLP

One Atlantic Center

1202 West Peachtree Street

Atlanta, Georgia 30309

(404) 881-7000

 

Martin A. Traber, Esq.

Steven W. Vazquez, Esq.

Carolyn T. Long, Esq.

Foley & Lardner

100 North Tampa St., Suite 2700

Tampa, Florida 33602

(813) 229-2300

 


Approximate date of commencement of proposed sale to the public: From time to time after the effective date of this Registration Statement.registration statement.

If the only securities being registered on this Formform are being offered pursuant to dividend or interest reinvestment plans, please check the following box.¨

If any of the securities being registered on this Formform 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.x

If this Formform 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 Formform 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 delivery ofthis 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 prospectus is expected to be madeCommission pursuant to Rule 434, please462(e) under the Securities Act, check the following box.x¨

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, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filerxAccelerated filer ¨
Non-accelerated filer ¨

(Do not check if a smaller reporting company)

Smaller reporting company ¨

CALCULATION OF REGISTRATION FEE

 


Title of each class of securities to be registered  Amount to be
Registered(1)
  Proposed maximum
offering price per
unit(1)
  Proposed maximum
aggregate offering
price(1)
  Amount of
registration fee(2)

Debt Securities

            

Common Stock, par value $0.001 per share(3)

            

Warrants(4)

            

Units consisting of two or more of the above Total

  $125,000,000     $125,000,000  $14,712.50

 

Title of each class of securities to be registered(1) Amount to be
registered(1)
 Proposed maximum
offering price per
unit(1)(2)
 Proposed maximum
aggregate offering
price(1)(2)
 

Amount of

registration fee(2)(3)

Common Stock, $0.001 par value per share(4)

        

Preferred Stock, $0.001 par value per share(4)

        

Warrants(5)

        

Units

        

Total:

     $250,000,000 

$34,100

 

 

 

(1)There are being registered under this

This registration statement registers an indeterminate number of or aggregate principal amount of securities of each identified class as may at various times be issued at indeterminate prices, with an aggregate public offering price not to exceed $125,000,000 or$250,000,000. For each class of security, the equivalent thereofamount to be registered, the proposed maximum offering price per unit and the proposed maximum aggregate offering price will be determined by the registrant from time to time in one or more currencies. If any debt securities are issued at an original issue discount, thenconnection with the issuance of the securities. The securities registered shall include such additional debt securities as may be necessary such that the aggregate initial public offering price of all securities issued pursuant tounder this registration statement may be sold separately, together or as units with other securities registered under this registration statement.

(2)

Not specified as to each class of securities to be registered pursuant to General Instruction II.D. to Form S-3.

(3)

Estimated solely for the purpose of calculating the registration fee pursuant to Rule 457(o).

(4)

In addition to any shares of common stock or preferred stock that may be issued directly under this registration statement, there are being registered hereunder an indeterminate number of shares of common stock or preferred stock as may from time to time be issued upon conversion or exchange of preferred stock registered hereunder that provide for conversion or exchange or upon the exercise of warrants registered hereunder. No separate consideration will equal $125,000,000.be received for any shares of common stock or preferred stock so issued upon conversion or exchange of preferred stock. In addition, pursuant to Rule 416 under the Securities Act of 1933, this registration statement will cover such indeterminate number of shares of common stock of the registrant thatand preferred stock as may be issued inwith respect to the securities registered hereunder as a result of stock splits, stock dividends and similar transactions. Any securities registered under this registration statement may be sold separately or as units with other securities registered under this registration statement. The proposed maximum initial offering price per security has been omitted pursuant to instruction II.D of Form S-3 and will be determined from time to time by the registrant in connection with the issuance of the securities registered under this registration statement.

 

(2)(5)The estimated registration fee for the common shares, preferred shares, debt securities and warrants has been calculated pursuant to Rule 457(o) of the rules and regulations under the Securities Act of 1933, as amended.

(3)In addition to any shares of common stock that may be issued directly under this registration statement, there are being registered hereunder an indeterminate number of shares of common stock as may from time to time be issued (i) at indeterminate prices or (ii) upon conversion or exchange of debt securities, or upon the exercise of warrants, as the case may be. No separate consideration will be received for any shares of common stock so issued upon conversion or exchange of debt securities.

(4)

Warrants to purchase debt securitiespreferred stock or common stock of the registrant may be sold separately or with debt securitiespreferred stock or common stock of the registrant.

 

The Registrantregistrant hereby amends this registration statement on such date or dates as may be necessary to delay its effective date until the Registrantregistrant 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 or until the registration statement shall become effective on such date as the Commission, acting pursuant to said Section 8(a), may determine.

 



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 it is not soliciting an offer to buy these securities in any state where the offer or sale is not permitted.

 

Subject to Completion DatedJanuary 10, 2005 December 21, 2012

PROSPECTUS

$125,000,000250,000,000

FARO Technologies, Inc.

Common Stock

Debt Securities, CommonPreferred Stock and

Warrants

Units

 


 

FARO Technologies, Inc. (“FARO”) may offer from time to time any combination of the securities described in this prospectus, either individually or in units. We may also offer common stock upon conversion of preferred stock or common stock or preferred stock upon exercise of warrants. We may offer these securities in one or more offerings in amounts, at prices, and on terms determined at the time of the offering.

This prospectus provides a general description of these securities. When we offer securities, we will provide you with a prospectus supplement describing the specific terms of the specific issue ofoffering and the securities, including the offering price of the securities. The prospectus supplements may also add, update or change information contained in this prospectus. You should read this prospectus and any supplements carefully before you invest. This prospectus may not be used to sell securities unless accompanied by a prospectus supplement.

Our common stock is tradedWe may sell the securities directly to investors or through agents or underwriters and dealers we select, on the Nasdaq National Market under the symbol “FARO.”

Investing in these securities involves risks.a continuous or delayed basis. See Risk Factors“Plan of Distribution” beginning on page 38 of this prospectus and, if applicable, in the “Risk Factors” section of the applicable prospectus supplement.

The securities may be offered in amounts, at prices and on terms determined at the time of offering. The securities may be sold directly to you through agents which we may select, or through underwriters and dealers which we may select.prospectus. If we use agents, underwriters or dealers, to sell the securities, we will name them and describe their compensation in a prospectus supplement.

Our common stock is traded on the Nasdaq Global Select Market under the symbol FARO. On December 18, 2012, the per share closing price of our common stock as reported on the Nasdaq Global Select Market was $35.10 per share.

Investing in our securities involves risks. See “Risk Factors” beginning on page 2 of this prospectus, in our most recent Annual Report on Form 10-K and in our subsequent Quarterly Reports on Form 10-Q incorporated by reference herein, which may be amended, supplemented or superseded from time to time by other reports we file with the Securities and Exchange Commission in the future and by any applicable prospectus supplement.

Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or passed upon the accuracydetermined if this prospectus is truthful or adequacy of this prospectus.complete. Any representation to the contrary is a criminal offense.

The date of this prospectus is, 2005.

2012.


TABLE OF CONTENTSTable of Contents

 

   Page

ABOUTTHISPROSPECTUS

1

ABOUT FAROAbout This Prospectus.

  1

RISK FACTORSOur Business

  2
1

USEOFPROCEEDSRisk Factors

  9
2

RATIOOFEARNINGSTOFIXEDCHARGESCautionary Note Regarding Forward-Looking Statements

  9
2

DESCRIPTIONOFCAPITALSTOCKThe Securities

  21
3

DESCRIPTIONOFWARRANTSUse of Proceeds

  21
4

PLANOFDISTRIBUTIONRatio of Combined Fixed Charges and Preference Dividends to Earnings

  22
4

LEGALMATTERSDescription of Capital Stock

  24
4

EXPERTSDescription of Warrants

  24
6

WHEREYOUCANFINDMOREINFORMATIONDescription of Units

  24
7

INCORPORATIONBYREFERENCEPlan of Distribution

  248

Experts

9

Legal Matters

9

Incorporation of Certain Information by Reference

9

Where You Can Find More Information

11

 

i


ABOUT THIS PROSPECTUS

This prospectus is part of a registration statement that we filed with the Securities and Exchange Commission (“SEC”) using a “shelf” registration process. By using a shelf registration process, we may offer our securities, as described in this prospectus, from time to time in one or more offerings up to a total initial issuance amount of $250,000,000. We may use the shelf registration statement to offer shares of common stock or preferred stock or warrants to purchase any of such securities, either individually, together or in units. Each time we offer securities under this prospectus, we will provide a prospectus supplement that will contain specific information about the terms of such offering and such securities. We may also authorize one or more free writing prospectuses to be provided to you, which may contain material information relating to these offerings. The prospectus supplement and any related free writing prospectus that we may authorize to be provided to you may also add, update or change information contained in this prospectus or incorporated by reference into this prospectus. Before purchasing any securities, you should carefully read this prospectus, any prospectus supplement and any related free writing prospectus, together with the additional information incorporated into this prospectus by reference as described under the heading “Where You Can Find More Information.”

You should rely only on the information contained or incorporated by reference in prospectus.this prospectus, any prospectus supplement, the registration statement and any free writing prospectus that we may authorize to be provided to you. We have not and the underwriters 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. We arewill not and the underwriters are not, makingmake an offer to sell these securities in any jurisdiction where the offer or sale is not permitted. You should assume that the information appearing in this prospectus, any prospectus supplement or any related free writing prospectus, as well as information incorporated by reference, is accurate only as of the date on the front cover of this prospectus or other date stated in this prospectus.such document. Our business, financial condition, results of operations and prospects may have changed since that date.

The information inWe may not use this prospectus or any supplement may not contain all the information that may be important to you. You should read the entire prospectus or any supplement, as well as the documents incorporated by reference in the prospectus or any supplement, before making an investment decision.


FARO® and the FARO logo are registered trademarks of FARO Technologies, Inc. Other trademarks and service marks appearing in this prospectus are the property of their respective holders.

i


ABOUT THIS PROSPECTUS

This prospectus is part of a registration statement on Form S-3 that we filed with the Securities and Exchange Commission utilizing a “shelf” registration process. Under this shelf process, we may, from time to time, sell any combination of securities described in this prospectus in one or more offerings. This prospectus provides you with a general description of the securities we may offer. Each time we sell securities we will provideunless it is accompanied by a prospectus supplement that will contain specific information aboutmore fully describes the terms of thatthe offering. The prospectus supplement may also add, update or change information contained in this prospectus. You should read both this prospectus and any applicable prospectus supplement together with additional information described below under

Unless the heading “Where You Can Find More Information.”

When usedcontext otherwise requires, references in this prospectus and any prospectus supplement the terms “FARO,to “we,“we,“us,” “our,” “us”the “Company,” and the “Company”“FARO” refer to FARO Technologies, Inc. and itits subsidiaries. The following summary contains basic information about us. It likely does not contain all the information that is important to you. We encourage you to read this entire prospectus and the documents we have referred you to.

ABOUT FAROOUR BUSINESS

Our Business

The Company designs, develops, manufactures, markets and supports portable, software-driven,software driven, 3-D measurement and imaging systems that are used in a broad range of manufacturing, industrial, building construction and industrialforensic applications. The Company’s principal products are the Faro ArmFaroArm®, FARO Laser ScanArm® and FaroFARO Gage articulated measuring devices, the FaroFARO Laser Tracker Vantage, the FARO Focus3D, the FARO 3D Imager AMP, and their companion CAM2® software, which provide for CAD-basedComputer-Aided Design, or CAD, based inspection and/or factory-level statistical process control.control and high-density surveying. Together, these products integrate the measurement, and quality inspection, functionand reverse engineering functions with CAD software to improve productivity, enhance product quality and decrease rework and scrap in the manufacturing process. The Company uses the acronym “CAM2” for this process, which stands for Computer-aided manufacturingcomputer-aided measurement. The Company’s products bring precision measurement, quality inspection and specification conformance capabilities, integrated with leading CAD software, toAs of December 2011, the factory floor. The Company is a pioneer in the development, marketing and manufacturing of 3-D measurement technology in manufacturing and industrial applications and currently holds 33 issued or pending patents. The Company’s products have been purchased by approximately 3,50013,000 customers worldwide, ranging from small machine shops to such large manufacturing and industrial companies as Audi, Bell Helicopter, Boeing, British Aerospace, Caterpillar, Daimler Chrysler,Bombadier, Ford, General Electric, General Motors, Honda, Johnson Controls, Komatsu Dresser,America International, Lockheed Martin, Nissan,NASA, Northrup Grumman, Siemens and Volkswagen, among many others.

Our principal executive officesThe Company was founded in 1982 and re-incorporated in Florida in 1992. The Company’s worldwide headquarters are located at 125250 Technology Park, Lake Mary, Florida 32746, and ourits telephone number at this address is (407) 333-9911. OurWe maintain a website address ison the Internet at www.faro.com. Information contained inThe information on or accessible through our Internet website is not aconsidered part of this document.prospectus.

FARO, FaroArm, FARO Laser ScanArm, FARO Gage, FARO Laser Tracker and the FARO logo are registered trademarks of FARO Technologies, Inc. Other trademarks and service marks appearing in this prospectus are the property of their respective holders.

 

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RISK FACTORS

Investing in our securities involves a high degree of risk. Before you invest in our securities, you should be aware thatcarefully consider the occurrence of any of the events described in this Risk Factors section andrisks discussed elsewhere in this prospectus and under the heading “Risk Factors” in any prospectus supplement, as well as the risks discussed in the documents we incorporate by reference herein. The occurrence of these risks or in a supplementother risks not presently known to this prospectusus could have a material adverse effect on our business, financial condition and results of operations. You should carefully consider these risk factorsoperations and you may lose all or part of your investment in the specific risks set forth under the caption “Risk Factors” in any supplement to this prospectus, together with alloffered securities.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Some of the other information includedstatements in this prospectus, the documents incorporated by reference herein and in any prospectus supplement may be deemed forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which reflect our plans, beliefs, and current views with respect to, among other things, future events and our financial performance. We often identify these forward-looking statements by the use of forward-looking words such as “expect,” “potential,” “continue,” “may,” “will,” “should,” “could,” “would,” “seek,” “intend,” “plan,” “estimate,” “project,” “anticipate” or in a supplementsimilar forward-looking words. Specifically, this prospectus contains, among others, forward-looking statements regarding:

the amount, timing, types and price of any securities offered under this prospectus;

the plan of distribution with respect to any securities offered under this prospectus;

our decision to list on an exchange any preferred stock offered under this prospectus;

the use of proceeds from any offering under this prospectus and the types of investment of any net proceeds pending their use; and

our decision to pay cash dividends in documents we incorporate by reference before you decide to purchase our securities. You can obtain the informationfuture.

The forward-looking statements included herein, in any prospectus supplements and in the documents incorporated by reference, into this prospectus without chargeas well as any expectations based on such forward-looking statements, are subject to risks and uncertainties and other important factors that could cause actual results to differ materially from the results contemplated by following the instructionsforward-looking statements, including:

economic downturn in the “Where You Can Find More Information” sectionmanufacturing industry or the domestic and international economies in the regions of this prospectus.the world where the Company operates;

 

Our customers’ buying process for our products is highly decentralized, and therefore, it typically requires significant time and expense for usthe Company’s inability to further penetrate the potential market of a specificits customer which may delay our ability to generate additional revenue.base and target markets;

 

Our success will depend, in part, on our ability to further penetrate our customer base. Most of our customers have a decentralized buying process for measurement devices. Thus, we must spend significant time and resources to increase revenues from a specific customer. For example, we may provide products to only one of our customers’ manufacturing facilities or for a specific product line within a manufacturing facility. We cannot assure you that we will be able to maintain or increase the amount of sales to our existing customers.

Others may develop products that make our products obsolete or less competitive.

The computer-aided manufacturing measurement (“CAM2”) market is emerging and could be characterizeddevelopment by rapid technological change. Others may developothers of new or improved products, processes or technologies that may make ourthe Company’s products obsolete or less competitive. We cannot assure you that we will be able to adapt to evolving markets and technologies or maintain our technological advantage.competitive;

 

Our success will depend, in part, on our abilitythe Company’s inability to maintain ourits technological advantage by developing new products and enhancing ourits existing products. Developing new productsproducts;

the Company’s inability to successfully identify and enhancing our existing products can be complex and time-consuming. Significant delays in new product releasesacquire target companies or difficulties in developing new products could adversely affect our revenues and results of operations. Because our customersachieve expected benefits from acquisitions that are concentrated in a few industries, a reduction in sales to any one of these industries could cause a significant decline in our revenues.consummated;

 

Approximately 75% of our sales are to manufacturers in the automotive, aerospace, and heavy equipment industries. We are dependent upon the continued growth, viability, and financial stability of our customers in these industries, which are highly cyclical and dependent upon the general health of the economy and consumer spending. The cyclical nature of thesethe industries may exert significant influence on our revenues and results of operations. In addition, the volume of orders from ourCompany’s customers and material adverse changes in its customers access to liquidity and capital;

the prices of our products may be adversely impacted by decreases in capital spending by a significant portion of our customers during recessionary periods. In addition, we generate significant accounts receivable in connection with providing products and services to our customers. If one or more of our significant customers were to become insolvent or otherwise were unable to paymarket potential for the computer-aided measurement (“CAM2”) market and the potential adoption rate for the Company’s products provided by us, our operating resultsare difficult to quantify and financial condition would be adversely affected.predict;

Ourthe inability to protect ourthe Company’s patents and other proprietary rights in the United States and foreign countries could adversely affect our revenues.countries;

 

Our success depends in large part on our ability to obtain and maintain patent and other proprietary right protection for our processes and productsfluctuations in the United States and other countries. We also rely upon trade secrets, technical know-how, and continuing inventions to maintain our competitive position. We seek to protect our technology and trade secrets, in part, by confidentiality agreements with our employees and contractors. Our employees may breach these agreements or our trade secrets may otherwise become known or be independently discovered by inventors. If we are unable to obtain or maintain protection of our patents, trade secrets, and other proprietary rights, we may not be able to prevent third parties from using our proprietary rights.

Our patent protection involves complex legal and technical questions. Our patents may be challenged, narrowed, invalidated, or circumvented. We may be able to protect our proprietary rights from infringement by third parties only to the extent that our proprietary processes and products are covered by valid and enforceable patents or are effectively maintained as trade secrets. Furthermore, others may independently develop similar or alternative technologies or design around our patented technologies. Litigation or other proceedings to defend or enforce our intellectual property rights could require us to spend significant time and money and could otherwise adversely affect our business.

Claims from others that we infringe their intellectual property rights may adversely affect our operations.

From time to time we receive notices from others claiming we infringe their intellectual property rights. The number of these claims may grow. Responding to these claims may require us to enter into royalty and licensing agreements on unfavorable terms, require us to stop selling or to redesign affected products, or require us to pay damages. Any litigation or interference proceedings, regardless of their outcome, may be costly and may require significant time and attention of our management and technical personnel.

Our operating results may fluctuate due to a number of factors, many of which are beyond our control.

OurCompany’s annual and quarterly operating results have varied significantly inand the past and likely will vary significantly in the futureinability to achieve its financial operating targets as a result of:

of a number of factors including, without limitation (i) litigation and regulatory action brought against the Company, (ii) quality issues with its products, (iii) excess or obsolete inventory, (iv) raw material price fluctuations, (v) expansion of the Company’s manufacturing capability and other inflationary pressures, (vi) the size and timing of customer orders;

orders, (vii) the amount of time that it takes to fulfill orders and ship our products;

the Company’s products, (viii) the length of ourthe Company’s sales cycle to new customers and the time and expense incurred in further penetrating ourits existing customer base;

base, (ix) increases in operating expenses required for product development and new product marketing;

marketing, (x) costs associated with new product introductions, such as product development, marketing, assembly line start-up costs and low introductory period production volumes;

volumes, (xi) the timing and market acceptance of new products and product enhancements;

enhancements, (xii) customer order deferrals in anticipation of new products and product enhancements;

ourenhancements, (xiii) the Company’s success in expanding ourits sales and marketing programs;programs,

-2-


(xiv) start-up costs associated with opening new sales offices outside of the United States, (xv) fluctuations in revenue without proportionate adjustments in fixed costs, (xvi) the efficiencies achieved in managing inventories and fixed assets, (xvii) investments in potential acquisitions or strategic sales, product or other initiatives, (xviii) shrinkage or other inventory losses due to product obsolescence, scrap or material price changes, (xix) adverse changes in the manufacturing industry and general economic conditions, (xx) compliance with government regulations including health, safety, and environmental matters, and (xxi) other factors noted herein;

changes in gross margins due to changing mix of products sold and the different gross margins on different products;

the Company’s inability to successfully maintain the requirements of Restriction of use of Hazardous Substances (“RoHS”) and Waste Electrical and Electronic Equipment (“WEEE”) compliance into its products;

the inability of the United States;

fluctuations in revenue without proportionate adjustments in fixed costs;

the efficiencies achieved in managing inventories and fixed assets; and

adverse changes in the manufacturing industry and general economic conditions.

Any one or a combination of these factors could adversely affect our annual and quarterly operating results in the future.

The CAM2 market is an emerging market, and our growth depends on the ability of ourCompany’s products to attain broad market acceptance.

The CAM2 market is in an early stage of adoption. The market for traditional fixed-base coordinate measurement machines (“CMMs”), check fixtures, and other handheld measurement tools is mature. Part of our strategy is to continue to displace these traditional measurement devices. Displacing traditional measurement devices and achievingattain broad market acceptanceacceptance;

the impact of ourcompetitive products requires significant effort to convince manufacturers to reevaluate their historical measurement procedures and methodologies.

Wepricing in the CAM2 market three closely interdependent products (FaroArms, Faro Laser Tracker, and Faro Gage) and related softwarethe broader market for use in measurement and inspection applications. Substantially all our revenues currently are derived from salesdevices;

the effects of these products and software, and we plan to continue our business strategyincreased competition as a result of focusing on the portable software-driven, 3-D measurement and inspection market. Consequently, our financial performance will depend in large part on portable, computer-based measurement and inspection products achieving broad market acceptance. If our products cannot attain broad market acceptance, we will not grow as anticipated and may be required to make increased expenditures on research and development for new applications or new products.

We compete with manufacturers of portable measurement systems and traditional measurement devices, many of which have more resources than us and may develop products or technologies that will directly compete with us.

Our portable measurement systems competerecent consolidation in the broad market for measurement devices for manufacturing and industrial applications, which, in addition to portable articulated arms and laser tracker products, consists of fixed-base CMMs, check fixtures, and handheld measurement tools. The broad market for measurement devices is highly competitive. In the Faro Gage product line, manufacturers of handheld measurement tools and fixed-base CMMs include a significant number of well-established companies that are substantially larger and possess substantially greater financial, technical, and marketing resources than we possess. In the FaroArm product line, we competeCAM2 market;

risks associated with Hexagon Metrology, who is significantly larger than us. In the laser tracker product line, we compete primarily with Leica Geosystems, who is significantly larger than us and, we believe, currently the leader in this product line. We will be required to make continued investments in technology and product development to maintain our technological advantage over our competition. We cannot assure you that we will have sufficient resources to make additional investments in technology and product development or that our product development efforts will allow us to successfully compete as the industry evolves.

Our competitors may develop products or technologies that directly compete with us. For example, fixed-base CMMs are introducing computer-aided-design (“CAD”)-based inspection software in

response to the trend toward CAD-based factory floor metrology. In addition, some fixed-base CMM manufacturers are miniaturizing and increasing the mobility of their conventional CMMs. These companies may continue to alter their products and devote resources to the development and marketing of additional products that compete with ours.

We derive a substantial part of our revenues from ourexpanding international operations, which are subject to greater volatility and often require more management time and expense to achieve profitability than our domestic operations.

Since 2000, we have derived over 50% of our sales from international operations. In Europe we recently opened a manufacturing facilitysuch as fluctuations in Schaufhausen, Switzerland and have regional sales offices in Germany, France, Spain, Italy, and the United Kingdom. In Asia, we have sales offices in Japan and China, and we are in the process of opening our first direct sales offices in Korea and India . Should trade relations between the United States and China deteriorate, our ability to transfer products between China and other regions of the world, including the United States, Asia, and Europe could be significantly impaired and our results of operations would suffer. In our experience, entry into new international markets requires considerable management time as well as start-up expenses for market development, hiring, and establishing office facilities before any significant revenues are generated. As a result, initial operations in a new market may operate at low margins or may be unprofitable. Our international operations may be subject to a number of risks, including:

currency exchange rates, difficulties in staffing and managing foreign operations;

operations, political and economic instability;

unexpected changes in regulatory requirementsinstability, compliance with import and laws;

longer customer payment cyclesexport regulations, and difficulty collecting accounts receivable;

export duties, import controls,the burdens and trade barriers;

governmental restrictions on the transfer of funds to us from our operations outside the United States;

burdenspotential exposure of complying with a wide variety of U.S. and foreign laws and labor practices;

 

fluctuations in currency exchange rates, which could affect local payroll utility and other expenses; and

inability to use net operating losses incurred by our foreign operations to reduce our U.S. income taxes.

Severalthe loss of the countries where we operate have emerging or developing economies, which may be subject to greater currency volatility, negative growth, high inflation, limited availability of foreign exchange, and other risks. These factors may harm our results of operations and any measures that we may implement to reduce the effect of volatile currencies and other risks of our international operations may not be effective. In addition, during 1997 and 1998, several Asian countries, including Japan, experienced severe currency fluctuation and economic deflation. If such situations reoccur or occur in other regions where we operate, it may negatively impact out sales and our ability to collect payments from customers in these regions.

We rely to a large extent on the experience and management ability of our senior executive officers.

Our success will depend, in part, on the services of our founders, Simon Raab, ourCompany’s Chief Executive Officer or other key personnel;

difficulties in recruiting research and Gregory Fraser, our Executive Vice Presidentdevelopment engineers and Treasurer. The loss or interruptionapplication engineers;

the failure to effectively manage the effects of the continued full-time services of these executives could have a material adverse effect on us. We do not have employment agreements with these executives.Company’s growth;

 

We may not be able to identify, consummate, or achieve expected benefits from acquisitions.

We have completed two significant acquisitions since our initial public offering in 1997. We intend to pursue access to additional technologies, complementary product lines, and sales channels through selective acquisitions and strategic investments. We may not be able to identify and successfully negotiate suitable acquisitions, obtain financing for future acquisitions on satisfactory terms or otherwise complete acquisitionsvariations in the future. In the past, we have used our stock as consideration for acquisitions. Our common stock may not remain at a price at which it can be used as consideration for acquisitions without diluting our existing shareholders, and potential acquisition candidates may not view our stock attractively.

Realization of the benefits of acquisitions often requires integration of some or all of the acquired companies’ sales and marketing, distribution, manufacturing, engineering, finance, and administrative organizations. The integration of acquisitions demands substantial attention from senior managementeffective income tax rate and the management ofdifficulty in predicting the acquired companies. Any acquisition may be subject totax rate on a variety of risksquarterly and uncertainties, including:annual basis; and

 

the loss of key suppliers and the inability to assimilate effectively the operations, products, technologies, and personnel of the acquired companies (some of which may be located in diverse geographic regions);

the inability to maintain uniform standards, controls, procedures, and policies;

the need or obligation to divest portions of the acquired companies; and

the potential impairment of relationships with customers.

We cannot assure you that we will be able to integrate successfully any acquisitions or that any acquired companies will operate profitably, or that we will realize the expected benefits from any acquisition.

We may face difficulties managing growth.

Our growth has placed significant demands on our management and operations and financial resources. If our business continues to grow rapidly in the future, we expect it to result in:

increased responsibility for existing and new management personnel, and

incremental strain on our operations, and financial and management systems.

Our success under such conditions will depend to a significant extent on the ability of our executive officers and other members of senior management to operate effectively both independently and as a group. If we are not able to manage future growth, our business, financial condition, and operating results may be harmed.

Our dependence on suppliers for materials could impair our ability to manufacture our products.

Outside vendors provide key components used by us in the manufacture of our products. Although we believe that alternative sources for these components are available, any supply interruption in a limited source component would harm our ability to manufacture our products until a new source of supply is identified. In addition, an uncorrected defect or supplier’s variation in a component, either known or unknown to us, or incompatible with our manufacturing processes, could harm our ability to manufacture our products. We may not be able to find a sufficient alternative suppliersuppliers in a reasonable period or on commercially reasonable terms, if at all. If we fail to obtain a supplier forterms;

as well as other risks and uncertainties identified under the manufacture of components of our potential products, we may experience delays or interruptionsheading “Risk Factors” in this prospectus, in our operations,most recent Annual Report on Form 10-K, and in our subsequent Quarterly Reports on Form 10-Q incorporated by reference herein, which would adversely affect our resultsmay be amended, supplemented or superseded from time to time by other reports we file with the SEC in the future and by any applicable prospectus supplement.

You should not place undue reliance on any forward-looking statement. The forward-looking statements in this prospectus, any prospectus supplements and the documents incorporated by reference speak only as of operations and financial condition.

the date of such document. Except as otherwise required by applicable law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

THE SECURITIES

We may experience volatility in our stock price.

The priceoffer shares of our common stock has been, and may continue to be, highly volatile in response to various factors, many of which are beyond our control, including:

developments in the industries in which we operate;

actual or anticipated variations in quarterly or annual operating results;

speculation in the press or investment community; and

announcements of technological innovations or new products by us or our competitors.

Our common stock’s market price may also be affected by our inability to meet analyst and investor expectations and failure to achieve projected financial results, including those set forth in this prospectus. Any failure to meet such expectations or projected financial results, even if minor, could cause the market price of our common stock to decline. Volatility in our stock price may result in your inability to sell your shares at or above the price at which you purchased them.

In addition, stock markets have generally experienced a high level of price and volume volatility, and the market prices of equity securities of many companies have experienced wide price fluctuations not necessarily related to the operating performance of such companies. These broad market fluctuations may adversely affect our common stock’s market price. In the past, securities class action lawsuits frequently have been instituted against such companies following periods of volatility in the market price of such companies’ securities. If any such litigation is instigated against us, it could result in substantial costs and a diversion of management’s attention and resources, which could have a material adverse effect on our business, results of operations, and financial condition.

We cannot assure you that an active trading market will develop for the securities offered other than our common stock or that such a market will not be volatile.

There is no established trading market for the securities offered other than our common stock and we do not intendpreferred stock or warrants to apply for listingpurchase any of such securities, either individually or in units, from time to time under this prospectus at prices and on terms to be determined by market conditions at the time of any offering. This prospectus provides you with a general description of the securities (other than our common stock) offered on any nationalwe may offer. Each time we offer a type or series of securities exchange or for quotationunder this prospectus, we will provide a prospectus supplement that will describe the specific amounts, prices and other important terms of the securities, offered onincluding, to the extent applicable:

designation or classification;

aggregate offering price;

rates and times of payment of interest or dividends, if any;

redemption, conversion, exercise, or exchange terms, if any;

ranking;

restrictive covenants, if any;

voting or other rights, if any;

conversion prices, if any; and

important U.S. federal income tax considerations.

-3-


The prospectus supplement and any automated dealer quotation system. related free writing prospectus that we may authorize to be provided to you may also add or update information contained in this prospectus or in documents we have incorporated by reference. However, no prospectus supplement or free writing prospectus will offer a security that is not registered and described in this prospectus at the time of the effectiveness of the registration statement of which this prospectus is a part.

We expect thatmay 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 do offer securities to or through agents or underwriters, we select will make a marketinclude in the securities issued in connection with thisapplicable prospectus although they would be under no obligation to do so and may discontinue any market-making activities at any time without any notice. Accordingly, no assurance can be given as to the price of the securities offered, the liquidity of the trading market for the securities offered or that an active public trading market for the securities offered does not develop, the market price

and liquidity of the securities offered may be adversely affected. If the securities offered are traded, they may trade at a discount from their offering price, depending upon prevailing interest rates, the market for similar securities, our performance and certain other factors. The liquidity of, and trading markets for, any debt securities offered may also be adversely affected by general declines in the market for non-investment grade debt. Such declines may adversely affect the liquidity of, and trading markets for, the securities offered, independent of our financial performance or prospects. Historically, the markets for non-investment grade debt securities have been subject to disruptions that have caused substantial price volatility. There can be no assurance that the market for any debt securities offered will not be subject to similar disruptions. Any such disruptions may have a material adverse effect on the value of such securities offered.

Our executive officers and directors control a significant percentage of our common stock and these shareholders may take actions that are adverse to your interests.

As of October 2, 2004, our executive officers and directors and entities affiliated with them, in the aggregate, beneficially owned approximately 19.27% of our common stock, 19.24% of which is beneficially owned by our two co-founders, Simon Raab and Gregory Fraser. As a result, these shareholders, acting together, can significantly influence all matters requiring shareholder approval, including the election and removal of directors and approval of significant corporate transactions such as mergers, consolidations, and sales of assets. They also could dictate the management of our business and affairs. This concentration of ownership could have the effect of delaying, deferring, or preventing a change in control or impeding a merger or consolidation, takeover, or other business combination, which could cause the market price of our common stock to fall or prevent you from receiving a premium in such a transaction.

Anti-takeover provisions in our articles of incorporation and bylaws and provisions of Florida law could delay or prevent a change of control that you may favor.

Our articles of incorporation, our bylaws, and Florida law could make it more difficult for a third party to acquire us, even if doing so would be beneficial to you. These provisions could discourage potential takeover attempts and could adversely affect the market price of our shares. Because of these provisions, you might not be able to receive a premium on your investment. These provisions include:supplement:

 

a limitation on shareholders’ ability to call a special meeting

the names of our shareholders;those agents or underwriters;

 

advance notice requirements

applicable fees, discounts and commissions to nominate directors for electionbe paid to our board of directors or to propose matters that can be acted on by shareholders at shareholder meetings; andthem;

 

the authority of the board of directors to issue, without shareholder approval, preferred stock with such terms as the board of directors may determine.

details regarding over-allotment options, if any; and

 

The provisions described above could delay or make more difficult transactions involving a change in control of us, or our management.

The debt securities will be effectively juniorthe net proceeds to all of our secured obligations.us.

The debt securities will be our unsecured obligations. The debt securities will be effectively junior in right of payment to all secured indebtedness. Upon any distribution of assets pursuant to any liquidation, insolvency, dissolution, reorganization or similar proceeding, the holders of secured indebtedness will be entitled to receive payment in full from the proceeds of the collateral securing such secured indebtedness before the holders of the debt securities will be entitled to receive any payment with respect thereto. As a result, the holders of the debt securities may recover proportionally less than holders of our secured indebtedness. As of October 2, 2004, we had approximately $127,834 of unsecured indebtedness outstanding, no secured indebtedness, and the capacity to borrow approximately $5.0 million of additional unsecured indebtedness under our credit facility.

USE OF PROCEEDS

Unless otherwise indicatedspecified in theany prospectus supplement, we intend to use the net proceeds from the sale of securities offered by this prospectus will be used by usand any prospectus supplement for one or more of the following:

 

repayment or refinancing of any then outstanding debt;

 

acquisition of additional businesses or technologies; and

 

working capital and general corporate purposes.

We will describe the specific use of proceeds from the sale of securities in the applicable prospectus supplement. We will have significant discretion in the use of any net proceeds. Investorsproceeds, and investors will be relyingrely on the judgment of our management regarding the application of the proceeds of any sale of the securities. Pending such uses, we anticipate that we will invest the net proceeds in interest-bearingshort-term, investment-grade securities.

RATIO OF EARNINGSCOMBINED FIXED CHARGES AND PREFERENCE DIVIDENDS TO FIXED CHARGESEARNINGS

The following table sets forth ourIf we offer preferred stock pursuant to this registration statement, we will provide a ratio of earnings to fixed charges for the periods indicated:

   

For the nine
months ended
October 2,

2004


  For the year ended December 31,

 
     2003

  2002

  2001

  2000

  1999

 

Ratio of earnings to fixed charges

  29.2  19.7  (a) (a) 2.0  (a)

(a)Our earnings were insufficient to cover our fixed charges for the years ended December 31, 2002, 2001 and 1999 by $1,804,831, $2,506,226 and $8,516,286, respectively.

For purposes of computing theand/or ratio of earnings tocombined fixed charges earnings consist of the sum of pretax income from continuing operations, and the portion of rent expense deemedpreference dividends to represent interest. Fixed charges consist of the sum of interest expense, and the portion of rent expense deemed to represent interest. Our fixed charges do not include any dividend requirements with respect to preferred stock because, as of the date of this prospectus and for the five preceding fiscal years, we have had no preferred stock outstanding.

THE SECURITIES

From time to time, we may offer under this prospectus, separately or together:

unsecured senior or subordinated debt securities;

shares of common stock;

warrants to purchase shares of common stock; and

warrants to purchase debt securities.

The aggregate initial offering price of the offered securities will not exceed $125,000,000.

DESCRIPTION OF DEBT SECURITIES

The following description sets forth general terms and provisions of the debt securities to which any prospectus supplement may relate. We will describe the particular terms and provisions of the series of debt securities offered by a prospectus supplement, and the extent to which such general terms and provisions described below may apply thereto, in the prospectus supplement relating to such series of debt securities.

The senior debt securities are to be issued in one or more series under an indenture, as supplemented or amended from time to time between us and an institution that we will name in the related prospectus supplement, as trustee. For ease of reference, we will refer to the indenture relating to senior debt securities as the senior indenture and we will refer to the trustee under that indenture as the senior trustee. The subordinated debt securities are to be issued in one or more series under an indenture, as supplemented or amended from time to time, between us and an institution that we will name in the related prospectus supplement, as trustee. For ease of reference, we will refer to the indenture relating to subordinate debt securities as the subordinate indenture and we will refer to the trustee under that indenture as the subordinate trustee. This summary of certain terms and provisions of the debt securities and the indentures is not necessarily complete, and we refer you to the copy of the form of the indentures that are or will be filed as an exhibit to the registration statement of which this prospectus forms a part, and to the Trust Indenture Act of 1939, as amended. Whenever we refer to particular defined terms of the indentures in this section or in a prospectus supplement, we are incorporating these definitions into this prospectus or the prospectus supplement.

General

The debt securities will be issuable in one or more series pursuant to the applicable indenture, a supplemental indenture relating to such series of debt securities, or a resolution of our board of directors or a committee of the board. Unless otherwise specified in a prospectus supplement, each series of senior debt securities will rank equally in right of payment with all our other senior obligations. Each series of subordinated debt securities will be subordinated and junior in right of payment to the extent and in the manner set forth in the subordinated indenture and any supplemental indenture relating to that debt. In addition, such subordinated debt securities may rank equal or senior in right of payment to other subordinated indebtedness that may have been issued or will be issued in the future. Except as otherwise provided in a prospectus supplement, the indentures will not limit our incurrence or issuance of other secured or unsecured debt, whether under the indentures, any other indenture that we may enter into in the

future or otherwise. For more information, you should read the prospectus supplement relating to a particular offering of securities.

The applicable prospectus supplement or prospectus supplements will describe the following terms of each series of debt securities:

the title of the debt securities and whether such series constitutes senior debt securities or subordinated debt securities;

any limit upon the aggregate principal amount of the debt securities;

the percentage of principal amount at which the debt securities will be issued;

the date or dates on which the principal of the debt securities is payable or the method of that determination or the right, if any, of FARO to defer payment of principal;

the rate or rates, if any, at which the debt securities will bear interest (including reset rates, if any, and the method by which any such rate will be determined), the interest payment dates on which interest will be payable and the right, if any, of FARO to defer any interest payment;

the place or places where, subject to the terms of the indenture as described below under the caption “—Payment and Paying Agents,” the principal of and premium, if any, and interest, if any, on the debt securities will be payable and where, subject to the terms of the indenture as described below under the caption “—Denominations, Registration and Transfer,” we will maintain an office or agency where debt securities may be presented for registration of transfer or exchange and the place or places where notices and demands to or upon us in respect of the debt securities and the indenture may be made;

any period or periods within, or date or dates on which, the price or prices at which and the terms and conditions upon which debt securities may be redeemed, in whole or in part, at our option pursuant to any sinking fund or otherwise;

the obligation, if any, of FARO to redeem or purchase the debt securities pursuant to any sinking fund or analogous provisions or at the option of a holder and the period or periods within which, the price or prices at which, the currency or currencies including currency unit or units, in which and the other terms and conditions upon which the debt securities will be redeemed or purchased, in whole or in part, pursuant to such obligation;

the denominations in which any debt securities will be issuable if other than denominations of $1,000 and any integral multiple thereof;

if other than in U.S. dollars, the currency or currencies, including currency unit or units, in which the principal of, and premium, if any, and interest, if any, on the debt securities will be payable, or in which the debt securities shall be denominated;

any additions, modifications or deletions in the events of default or covenants of FARO specified in the indenture with respect to the debt securities;

if other than the principal amount, the portion of the principal amount of debt securities that will be payable upon declaration of acceleration of the maturity thereof;

any additions or changes to the indenture with respect to a series of debt securities that will be necessary to permit or facilitate the issuance of the series in bearer form, registrable or not registrable as to principal, and with or without interest coupons;

any index or indices used to determine the amount of payments of principal of and premium, if any, on the debt securities and the manner in which such amounts will be determined;

subject to the terms of the indenture as described below under the caption “—Global Debt Securities,” whether the debt securities of the series will be issued in whole or in part in the form of one or more global securities and, in such case, the depositary for the global securities;

the appointment of any trustee, registrar, paying agent or agents;

the terms and conditions of any obligation or right of FARO or a holder to convert or exchange debt securities into preferred securities or other securities;

whether the defeasance and covenant defeasance provisions described under the caption “—Satisfaction and Discharge; Defeasance” will be inapplicable or modified;

any applicable subordination provisions in addition to those set forth herein with respect to subordinated debt securities; and

any other terms of the debt securities not inconsistent with the provisions of the applicable indenture.

We may sell debt securities at a substantial discount below their stated principal amount, bearing no interest or interest at a rate that at the time of issuance is below market rates. We will describe material U.S. federal income tax consequences and special considerations applicable to those debt securities in the applicable prospectus supplement.

If the purchase price of any of the debt securities is payable in one or more foreign currencies or currency units or if any debt securities are denominated in one or more foreign currencies or currency units or if the principal of, premium, if any, or interest, if any, on any debt securities is payable in one or more foreign currencies or currency units, we will set forth the restrictions, elections, material U.S. federal income tax considerations, specific terms and other information with respect to such issue of debt securities and such foreign currency or currency units in the applicable prospectus supplement.

If any index is used to determine the amount of payments of principal, premium, if any, or interest on any series of debt securities, we will describe the material U.S. federal income tax, accounting and other considerations applicable thereto in the applicable prospectus supplement.

Denominations, registration and transfer

Unless otherwise specifiedearnings in the applicable prospectus supplement the debt securities will be issuable only in registered form, without coupons, in denominations of $1,000 and any integral multiple thereof. Debt securities of any series will be exchangeable for other debt securities of the same issue and series, of any authorized denominations of a like aggregate principal amount, the same original issue date, stated maturity and bearing the same interest rate.

Holders may present each series of debt securities for exchange as provided above, and for registration of transfer, with the form of transfer endorsed thereon, or with a satisfactory written instrument of transfer, duly executed, at the office of the appropriate securities registrar or at the office of any transfer agent designated by us for such purpose and referred to in the applicable prospectus supplement, without service charge and upon payment of any taxes and other governmental charges as described in the indenture. We will appoint the trustee of each series of debt securities as securities registrar for such series under the indenture. If the applicable prospectus supplement refers to any transfer agents, in addition to the securities registrar initially designated by us with respect to any series, we may at any time rescind the designation of any such transfer agent or approve a change in the location through which any such transfer agent acts, provided that we maintain a transfer agent in each place of payment for the series. We may at any time designate additional transfer agents with respect to any series of debt securities. In the event of any redemption, neither we nor the trustee will be required to:offering.

issue, register the transfer of or exchange debt securities of any series during a period beginning at the opening of business 15 days before the day of mailing of a notice for redemption of debt securities of that series, and ending at the close of business on the day of mailing of the relevant notice of redemption; or

transfer or exchange any debt securities so selected for redemption, except, in the case of any debt securities being redeemed in part, any portion not being redeemed.

Global debt securities

Unless otherwise specified in the applicable prospectus supplement, the debt securities of a series may be issued in whole or in part in the form of one or more global securities that we will deposit with, or on behalf of, a depositary identified in the prospectus supplement relating to such series. Global debt securities may be issued only in fully registered form and in either temporary or permanent form. Unless and until it is exchanged in whole or in part for the individual debt securities represented by it, a global debt security may not be transferred except as a whole by the depositary for the global debt security to a nominee of the depositary, or by a nominee of the depositary to the depositary or another nominee of the depositary, or by the depositary or any nominee to a successor depositary or any nominee of the successor.

The specific terms of the depositary arrangement with respect to a series of debt securities will be described in the prospectus supplement relating to the series. We anticipate that the following provisions will generally apply to depositary arrangements.

Upon the issuance of a global debt security and the deposit of the global debt security with or on behalf of the applicable depositary, the depositary for the global debt security, or its nominee, will credit on its book-entry registration and transfer system the respective principal amounts of the individual debt securities represented by the global debt security to the accounts of persons, more commonly known as participants, that have accounts with the depositary. These accounts will be designated by the dealers, underwriters or agents with respect to the debt securities or by us if the debt securities are offered and sold directly by us. Ownership of beneficial interests in a global debt security will be limited to participants or persons that may hold interests through participants. Ownership of beneficial interests in the global debt security will be shown on, and the transfer of that ownership will be effected only through, records maintained by the applicable depositary or its nominee with respect to interests of participants and the records of participants with respect to interests of persons who hold through participants. The laws of some states require that certain purchasers of securities take physical delivery of the securities in definitive form. These limits and laws may impair the ability to transfer beneficial interests in a global debt security.

So long as the depositary for a global debt security, or its nominee, is the registered owner of the global debt security, the depositary or its nominee, as the case may be, will be considered the sole owner or holder of the debt securities represented by the global debt security for all purposes under the indenture. Except as provided below, owners of beneficial interests in a global debt security will not be entitled to have any of the individual debt securities of the series represented by the global debt security registered in their names, will not receive or be entitled to receive physical delivery of any debt securities of the series in definitive form, and will not be considered the owners or holders of them under the indenture.

Payments of principal of, and premium, if any, and interest on individual debt securities represented by a global debt security registered in the name of a depositary or its nominee will be made to the depositary or its nominee, as the case may be, as the registered owner of the global debt security representing the debt securities. None of FARO, the trustee, any paying agent, or the securities registrar for the debt securities will have any responsibility or liability for any aspect of the records relating to or payments made on account of beneficial ownership interest of the global debt security for the debt securities or for maintaining, supervising or reviewing any records relating to those beneficial ownership interests.

We expect that the depositary for a series of debt securities or its nominee, upon receipt of any payment of principal, premium or interest in respect of a permanent global debt security representing any of the debt securities, immediately will credit participants’ accounts with payments in amounts proportionate to their respective beneficial interest in the principal amount of the global debt security for the debt securities as shown on the records of the depositary or its nominee. We also expect that payments by participants to owners of beneficial interests in the global debt security held through the participants will be governed by standing instructions and customary practices, as is now the case with securities held for the accounts of customers in bearer form or registered in “street name.” These payments will be the responsibility of these participants.

Unless otherwise specified in the applicable prospectus supplement, if the depositary for a series of debt securities is at any time unwilling, unable or ineligible to continue as depositary and a successor depositary is not appointed by us within 90 days, we will issue individual debt securities of the series in exchange for the global debt security representing the series of debt securities. In addition, unless otherwise specified in the applicable prospectus supplement, we may at any time and in our sole discretion, subject to any limitations described in the prospectus supplement relating to the debt securities, determine not to have any debt securities of the series represented by one or more global debt securities and, in such event, will issue individual debt securities of the series in exchange for such global debt securities. Further, if we so specify with respect to the debt securities of a series, an owner of a beneficial interest in a global debt security representing debt securities of the series may, on terms acceptable to us, the trustee and the depositary for the global debt security, receive individual debt securities of the series in exchange for such beneficial interests, subject to any limitations described in the prospectus supplement relating to the debt securities. In any such instance, an owner of a beneficial interest in a global debt security will be entitled to physical delivery of individual debt securities of the series represented by the global debt security equal in principal amount to its beneficial interest and to have the debt securities registered in its name. Individual debt securities of the series so issued will be issued in denominations, unless otherwise specified by us, of $1,000 and integral multiples thereof. The applicable prospectus supplement may specify other circumstances under which individual debt securities may be issued in exchange for the global debt security representing any debt securities.

Payment and paying agents

Unless otherwise indicated in the applicable prospectus supplement, payment of principal of, and premium, if any, and any interest on debt securities will be made at the office of the trustee in New York or at the office of such paying agent or paying agents as we may designate from time to time in the applicable prospectus supplement, except that at our option, payment of any interest may be made:

except in the case of global debt securities, by check mailed to the address of the person or entity entitled thereto as such address shall appear in the securities register; or

by transfer to an account maintained by the person or entity entitled thereto as specified in the securities register, provided that proper transfer instructions have been received by the regular record date.

Unless otherwise indicated in the applicable prospectus supplement, we will make payment of any interest on debt securities to the person or entity in whose name the debt security is registered at the close of business on the regular record date for the interest payment, except in the case of defaulted interest. We may at any time designate additional paying agents or rescind the designation of any paying agent; however, we will at all times be required to maintain a paying agent in each place of payment for each series of debt securities.

Any monies deposited with the trustee or any paying agent, or held by us in trust, for the payment of the principal of, and premium, if any, or interest on any debt security and remaining unclaimed for two years after such principal, and premium, if any, or interest has become due and payable will, at our request, be repaid to us or released from such trust, as applicable, and the holder of the debt security will thereafter look, as a general unsecured creditor, only to us for payment.

Option to defer interest payments or to pay-in-kind

If provided in the applicable prospectus supplement, we will have the right, at any time and from time to time during the term of any series of debt securities, to defer the payment of interest for such number of consecutive interest payment periods as may be specified in the applicable prospectus supplement, subject to the terms, conditions and covenants, if any, specified in such prospectus supplement, provided that an extension period may not extend beyond the stated maturity of the final installment of principal of the series of debt securities. If provided in the applicable prospectus supplement, we will have the right, at any time and from time to time during the term of any series of debt securities, to make payments of interest by delivering additional debt securities of the same series. Certain material U.S. federal income tax consequences and special considerations applicable to the debt securities will be described in the applicable prospectus supplement.

Subordination

Except as set forth in the applicable prospectus supplement, the subordinated indenture will provide that the subordinated debt securities will be subordinated and junior in right of payment to all senior indebtedness of FARO. The term “senior indebtedness” will be defined in the applicable prospectus supplement. If:

We default in the payment of any principal, or premium, if any, or interest on any senior indebtedness when the same becomes due and payable, whether at maturity or at a date fixed for prepayment or declaration or otherwise; or

an event of default occurs with respect to any senior indebtedness permitting the holders thereof to accelerate the maturity thereof and written notice of such event of default, requesting that payments on subordinated debt securities cease, is given to us by the holders of senior indebtedness,

then unless and until the default in payment or event of default shall have been cured or waived or shall have ceased to exist, no direct or indirect payment, in cash, property or securities, by set-off or otherwise, will be made or agreed to be made on account of the subordinated debt securities or interest thereon or in respect of any repayment, redemption, retirement, purchase or other acquisition of subordinated debt securities.

Except as set forth in the applicable prospectus supplement, the subordinated indenture will provide that in the event of:

any insolvency, bankruptcy, receivership, liquidation, reorganization, readjustment, composition or other similar proceeding relating to us, our creditors or our property;

any proceeding for the liquidation, dissolution or other winding-up of FARO, voluntary or involuntary, whether or not involving insolvency or bankruptcy proceedings;

any assignment by us for the benefit of creditors; or

any other marshaling of our assets;

all present and future senior indebtedness, including, without limitation, interest accruing after the commencement of the proceeding, assignment or marshaling of assets, will first be paid in full before any payment or distribution, whether in cash, securities or other property, will be made by us on account of subordinated debt securities. In that event, any payment or distribution, whether in cash, securities or other property, other than securities of FARO or any other corporation provided for by a plan of reorganization or a readjustment, the payment of which is subordinate, at least to the extent provided in the subordination provisions of the indenture, to the payment of all senior indebtedness at the time outstanding and to any securities issued in respect thereof under any such plan of reorganization or readjustments and other than payments made from any trust described below under the caption “Satisfaction and Discharge; Defeasance,” which would otherwise, but for the subordination provisions, be payable or deliverable in respect of subordinated debt securities, including any such payment or distribution that may be payable or deliverable by reason of the payment of any other indebtedness of FARO being subordinated to the payment of subordinated debt securities, will be paid or delivered directly to the holders of senior indebtedness or to their representative or trustee, in accordance with the priorities then existing among such holders, until all senior indebtedness shall have been paid in full. No present or future holder of any senior indebtedness will be prejudiced in the right to enforce subordination of the indebtedness evidenced by subordinated debt securities by any act or failure to act on our part.

Modification of indentures

From time to time, we and the trustees may modify the indentures without the consent of any holders of any series of debt securities with respect to some matters, including:

to cure any ambiguity, defect or inconsistency or to correct or supplement any provision that may be inconsistent with any other provision of the indenture;

to qualify, or maintain the qualification of, the indentures under the Trust Indenture Act of 1939, as amended; and

to make any change that does not materially adversely affect the interests of any holder of such series of debt securities.

In addition, under the indentures, we and the trustees may modify some of our rights, covenants and obligations and the rights of holders of any series of debt securities with the written consent of the holders of at least a majority in aggregate principal amount of the series of outstanding debt securities; but no extension of the maturity of any series of debt securities, reduction in the interest rate or extension of the time for payment of interest, change in the optional redemption or repurchase provisions in a manner adverse to any holder of the series of debt securities, other modification in the terms of payment of the principal of, or interest on, the series of debt securities, or reduction of the percentage required for modification, will be effective against any holder of the series of outstanding debt securities without the holder’s consent.

In addition, we and the trustees may execute, without the consent of any holder of the debt securities, any supplemental indenture for the purpose of creating any new series of debt securities.

Events of default

The indentures will provide that any one or more of the following described events with respect to a series of debt securities that has occurred and is continuing constitutes an “event of default” with respect to that series of debt securities:

failure for 60 days to pay any interest or any sinking fund payment on the series of debt securities when due (subject to the deferral of any due date in the case of an extension period);

failure to pay any principal or premium, if any, on the series of the debt securities when due, whether at maturity, upon redemption, by declaration or otherwise;

failure to observe or perform in any material respect certain other covenants contained in the indenture for 90 days after written notice has been given to us from the trustee or the holders of at least 25% in principal amount of the series of outstanding debt securities;

default resulting in acceleration of other indebtedness of FARO for borrowed money, where the aggregate principal amount so accelerated exceeds $50 million and the acceleration is not rescinded or annulled within 60 days after the written notice thereof to us by the trustee or to us and the trustee by the holders of 25% in aggregate principal amount of the debt securities of the series then outstanding, provided that the event of default will be remedied, cured or waived if the default that resulted in the acceleration of such other indebtedness is remedied, cured or waived; or

certain events in bankruptcy, insolvency or reorganization of FARO.

The holders of not less than a majority in outstanding principal amount of the series of debt securities have the right to direct the time, method and place of conducting any proceeding for any remedy available to the trustee of the series. The trustee or the holders of not less than 25% in aggregate outstanding principal amount of the series may declare the principal due and payable immediately upon an event of default. The holders of a majority in aggregate outstanding principal amount of the series

may annul the declaration and waive the default if the default (other than the non-payment of the principal of the series that has become due solely by the acceleration) has been cured and a sum sufficient to pay all matured installments or interest and principal due otherwise than by acceleration has been deposited with the trustee of the series.

The holders of a majority in outstanding principal amount of a series of debt securities affected thereby may, on behalf of all the holders of the series of debt securities, waive any past default, except a default in the payment of principal or interest, unless the default has been cured and a sum sufficient to pay all matured installments of interest and principal due otherwise than by acceleration has been deposited with the trustee of the series, or a default in respect of a covenant or provision that under the related indenture cannot be modified or amended without the consent of the holder of each outstanding debt security of the series. We are required to file annually with the trustees a certificate as to whether or not we are in compliance with all the conditions and covenants applicable to it under the indentures.

In case an event of default shall occur and be continuing as to a series of debt securities, the trustee of the series will have the right to declare the principal of and the interest on the debt securities, and any other amounts payable under the indenture, to be forthwith due and payable and to enforce its other rights as a creditor with respect to the debt securities.

No holder of any debt securities will have any right to institute any proceeding with respect to the indenture or for any remedy thereunder, unless the holder shall have previously given to the trustee written notice of a continuing event of default, the holders of at least 25% in aggregate principal amount of the outstanding debt securities of the series shall have made written request and offered reasonable indemnity to the trustee of the series to institute the proceeding as a trustee, and the trustee shall not have received from the holders of a majority in aggregate principal amount of the outstanding debt securities of the class a direction inconsistent with the request and shall have failed to institute the proceeding within 60 days. However, these limitations do not apply to a suit instituted by a holder of a debt security for enforcement of payment of the principal or interest on the debt security on or after the respective due dates expressed in the debt security.

Consolidation, merger, sale of assets and other transactions

Unless otherwise indicated in the applicable prospectus supplement, the indentures will provide that we will not consolidate with or merge into any other person or entity or sell, assign, convey, transfer or lease its properties and assets substantially as an entirety to any person or entity unless:

either we are the continuing corporation, or any successor or purchaser is a corporation, partnership, or trust or other entity organized under the laws of the United States of America, any state thereof or the District of Columbia, and the successor or purchaser expressly assumes our obligations on the debt securities under a supplemental indenture; and

immediately before and after giving effect thereto, no event of default, and no event that, after notice or lapse of time or both, would become an event of default, shall have happened and be continuing.

Unless otherwise indicated in the applicable prospectus supplement, the general provisions of the indentures do not afford holders of the debt securities protection in the event of a highly leveraged or other transaction involving us that may adversely affect holders of the debt securities.

Satisfaction and discharge; defeasance

The indentures will provide that when, among other things, all debt securities not previously delivered to the trustee for cancellation:

have become due and payable; or

will become due and payable at their stated maturity within one year, and we deposit or cause to be deposited with the trustee, as trust funds in trust for the purpose, an amount in the currency or currencies in which the debt securities are payable sufficient to pay and discharge the entire indebtedness on the debt securities not previously delivered to the trustee for cancellation, for the principal, and premium, if any, and interest to the date of the deposit or to the stated maturity, as the case may be;

then the indenture will cease to be of further effect (except as to our obligations to pay all other sums due pursuant to the indenture and to provide the officers’ certificates and opinions of counsel described therein), and we will be deemed to have satisfied and discharged the indenture.

The indentures will provide that we may elect either:

to terminate, and be deemed to have satisfied, all our obligations with respect to any series of debt securities, except for the obligations to register the transfer or exchange of such debt securities, to replace mutilated, destroyed, lost or stolen debt securities, to maintain an office or agency in respect of the debt securities, and to compensate and indemnify the trustee (“defeasance”); or

to be released from our obligations with respect to certain covenants (“covenant defeasance”) upon the deposit with the trustee, in trust for such purpose, of money and/or U.S. Government Obligations, as defined in the indenture, which through the payment of principal and interest in accordance with the term used will provide money, in an amount sufficient (in the opinion of a nationally recognized firm of independent public accountants) to pay the principal of, interest on, and any other amounts payable in respect of the outstanding debt securities of the series.

Such a trust may be established only if, among other things, we have delivered to the trustee an opinion of counsel (as specified in the indenture) with regard to certain matters, including an opinion to the effect that the holders of the debt securities will not recognize income, gain or loss for U.S. federal income tax purposes as a result of the deposit and discharge, 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 the deposit and defeasance or covenant defeasance, as the case may be, had not occurred.

Redemption

Unless otherwise indicated in the applicable prospectus supplement, debt securities will not be subject to any sinking fund requirements.

Unless otherwise indicated in the applicable prospectus supplement, we may, at our option, redeem the debt securities of any series in whole at any time or in part from time to time, at the redemption price set forth in the applicable prospectus supplement plus accrued and unpaid interest to the date fixed for redemption, and debt securities in denominations larger than $1,000 may be redeemed in part but only in integral multiples of $1,000. If the debt securities of any series are so redeemable only on

or after a specified date or upon the satisfaction of additional conditions, the applicable prospectus supplement will specify the date or describe the conditions.

We will mail notice of any redemption at least 30 days but not more than 60 days before the redemption date to each holder of debt securities to be redeemed at the holder’s registered address. Unless we default in the payment of the redemption price on and after the redemption date, interest shall cease to accrue on the debt securities or portions thereof called for redemption.

Conversion or exchange

If and to the extent indicated in the applicable prospectus supplement, the debt securities of any series may be convertible or exchangeable into other securities. The specific terms on which debt securities of any series may be so converted or exchanged will be set forth in the applicable prospectus supplement. These terms may include provisions for conversion or exchange, either mandatory, at the option of the holder, or at our option, in which case the number of shares of other securities to be received by the holders of debt securities would be calculated as of a time and in the manner stated in the applicable prospectus supplement.

Certain covenants

The indentures will contain certain covenants regarding, among other matters, corporate existence, payment of taxes and reports to holders of debt securities. If and to the extent indicated in the applicable prospectus supplement, these covenants may be removed or additional covenants added with respect to any series of debt securities.

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.

Information concerning the trustees

Each trustee shall have and be subject to all the duties and responsibilities specified with respect to an indenture trustee under the Trust Indenture Act of 1939, as amended. Subject to these provisions, each trustee is under no obligation to exercise any of the powers vested in it by the indenture at the request of any holder of the debt securities, unless offered reasonable indemnity by the holder against the costs, expenses and liabilities which might be incurred thereby. Each trustee is not required to expend or risk its own funds or otherwise incur personal financial liability in the performance of its duties if the trustee reasonably believes that repayment or adequate indemnity is not reasonably assured to it.

DESCRIPTION OF CAPITAL STOCK

We are a Florida corporation. Your rights as a shareholder are governed by the Florida Business Corporation Act, our Articles of Incorporation, as amended, and our bylaws, as amended. The following descriptionsummary of our common stock, together with the additional information included in any applicable prospectus supplements, summarizes the material terms and provisions of this kind of securities but is not complete. For the complete terms of our common stock pleasemay not be complete and is subject to, and qualified in its entirety by reference to, the terms and provisions of our articles of incorporation and our bylaws. You should refer to, and read this summary together with, our Articlesarticles of Incorporation, as amendedincorporation and bylaws as amendedto review all of the terms of common stock that are incorporated by reference into the registration statement that includes this prospectus.may be important to you.

Common stock

WeUnder our articles of incorporation, we are authorized to issue a total of 50,000,000 shares of common stock, $.001 par value $0.001 per share and 10,000,000 shares of preferred stock, par value $0.001 per share. Each holderAs of December 18, 2012 we had issued and outstanding 16,973,644 shares of common stock held by approximately 56 holders of record and no shares of preferred stock issued and outstanding. All outstanding shares of our common stock is entitled to one vote for each share held. Shareholders do not have the right to cumulate their votes in elections of directors. Accordingly, directors are elected by a plurality of the votes cast by the shares entitled to vote.

fully paid and nonassessable. Our common stock is listed on the Nasdaq NationalGlobal Select Market under the symbol “FARO.” HoldersFARO.

Dividends

Subject to preferences that might be applicable to any then outstanding preferred stock, holders of our common stock will beare entitled to participate equally in dividends on a pro rata basis upon declarationwhen our Board of Directors declares dividends by our board of directors. Dividends will be payable only out of funds legally available for the payment of dividends. Dividends that may be declared on our common stock will beout of legally available funds. We have never declared or paid in an equal amount to the holder of each share. Currently, we are not paying dividends. No pre-emptive rights are conferred upon the holders of suchany cash dividends on our common stock and there are no liquidation or conversion rights. There are no redemption or sinking fund provisions and there is no liability to further calls or to assessments by us. Any determination to declare or paydo not anticipate paying any such cash dividends in the futureforeseeable future. Future dividends, if any, will be determined by our Board of Directors and will be based on our earnings, capital requirements and operating and financial condition, among other factors, at the discretiontime any such dividends are considered by our Board of Directors.

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Voting Rights

The holders of our boardcommon stock are entitled to one vote for each share of directors and will depend oncommon stock held; our resultsarticles of operations, financial condition, contractual or legal restrictions and other factors deemed relevantincorporation do not provide for cumulative voting. Directors are elected by our boarda plurality of votes cast by shares entitled to vote in the election of directors. UponOn all other matters, unless a greater number of affirmative votes is required, an action is approved by a majority of votes cast at the meeting.

Liquidation and Dissolution

In the event of our liquidation, dissolution, or winding up, voluntarily or involuntarily, holders of our common stock will be entitledhave the right to a pro rata distributionratable portion of the assets remaining after satisfaction in full of the prior rights of our assets, after paymentcreditors and of all amounts owedliabilities, subject to our creditors. The transfer agent forprior distribution rights of any preferred stock then outstanding.

Other

Holders of our common stock are not entitled to any preemptive or preferential right to purchase or subscribe for shares of capital stock of any class and have no conversion, redemption or sinking fund rights.

Certain Statutory and Other Provisions

Statutory Provisions. The Company is subject to several anti-takeover provisions under Florida law that apply to public corporations organized under Florida law unless the corporation has elected to opt out of those provisions in its articles of incorporation or (depending on the provision in question) its bylaws. The Company has not elected to opt out of these provisions. The Florida Business Corporation Act, which we refer to as the FBCA, prohibits the voting of shares in a publicly held Florida corporation that are acquired in a “control share acquisition” unless the Board of Directors approves the control share acquisition or the holders of a majority of the corporation’s voting shares (exclusive of shares held by officers of the corporation, inside directors or the acquiring party) approve the granting of voting rights as to the shares acquired in the control share acquisition. A “control share acquisition” is defined as an acquisition that immediately thereafter entitles the acquiring party to, directly or indirectly, exercise voting power in the election of directors within any of the following ranges: (i) one-fifth or more but less than one-third of such voting power, (ii) one-third or more but less than a majority of such voting power and (iii) a majority or more of such voting power. This statutory voting restriction is not applicable in certain circumstances set forth in the FBCA.

The FBCA also contains an “affiliated transaction” provision that prohibits a publicly-held Florida corporation from engaging in a broad range of business combinations or other extraordinary corporate transactions with an “interested shareholder” unless (i) the transaction is approved by a majority of disinterested directors, (ii) the Company has not had more than 300 shareholders of record during the past three years, (iii) the interested shareholder has owned at least 80% of the Company’s outstanding voting shares for at least five years, (iv) the interested shareholder is the beneficial owner of at least 90% of the voting shares (excluding shares acquired directly from the Company in a transaction not approved by a majority of the disinterested directors), (v) consideration is paid to the holders of the Company’s shares equal to the highest amount per share paid by the interested shareholder for the acquisition of Company shares in the last two years or fair market value and certain other conditions are met or (vi) the transaction is approved by the holders of two-thirds of the Company’s voting shares other than those owned by the interested shareholder. An interested shareholder is defined as a person who, together with affiliates and associates, beneficially owns (as defined in Section 607.0901(1) (e) of the FBCA) more than 10% of the Company’s outstanding voting shares.

Classified Board of Directors. The Company’s articles of incorporation and bylaws provide that the Board of Directors of the Company will be divided into three classes, with staggered terms of three years for each class. The term of one class expires each year. The Company’s bylaws provide that any vacancies on the Board of Directors will be filled only by the affirmative vote of a majority of the directors then in office, even if less than a quorum. The articles of incorporation and bylaws of the Company also provide that any director may be removed from office, but only for cause and only upon the affirmative vote of the holders of at least two-thirds of our common stock.

Special Voting Requirements. The Company’s articles of incorporation provide that all actions taken by the shareholders must be taken at an annual or special meeting of the shareholders or by written consent of the holders of not less than two-thirds of the Company’s outstanding voting shares. The articles of incorporation provide that special meetings of the shareholders may be called only by the President, the Chairman of the Board, a majority

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of the members of the Board of Directors, even if less than a quorum, or the holders of not less than 50% of the Company’s outstanding voting shares. Under the Company’s bylaws, shareholders will be required to comply with advance notice provisions with respect to any proposal submitted for shareholder vote, including nominations for elections to the Board of Directors. The articles of incorporation and bylaws of the Company contain provisions requiring the affirmative vote of the holders of at least two-thirds of our common stock to amend certain provisions of the Company’s articles of incorporation and bylaws.

Transfer Agent

American Stock Transfer &and Trust Company.

Company serves as the transfer agent and registrar for all of our common stock.

DESCRIPTION OF WARRANTS

We may issue warrants for the purchase of debt securitiesour common stock or common stock. Warrantspreferred stock in one or more series. We may be issuedissue warrants independently or together with our common stock or preferred stock. While the terms summarized below will apply generally to any other securities offered bywarrants we may offer, we will describe the particular terms of any prospectus supplement and may be attached to or separate from such securities. Each series of warrants in more detail in the applicable prospectus supplement.

We will be issuedissue each series of warrants under a separate warrant agreement to be entered into between FAROus and the warrant holders or a warrant agent specifiedidentified in the applicable prospectus supplement. The warrant agent will act solely as anour agent of FARO in connection with the warrantsseries of such serieswarrants and will not assume any obligation or relationship of agency or trust for or with any holders of the warrants. Further terms of the warrants and the applicable warrant agreementsWe will be set forth in the applicable prospectus supplement. Copies of the form of warrant agreement and warrant will be filedfile as exhibitsan exhibit to or incorporated by reference in the registration statement of which this prospectus forms a part, or incorporate by reference from reports that we file with the SEC, the form of warrant agreement, including the form of warrant certificate, that describes the particular terms of the series of warrants we are offering before we issue such series, and the following summary is qualified in its entirety by reference to such exhibits.

exhibit. You should read the following summary, the applicable prospectus supplement and any related free writing prospectuses, together with the complete applicable warrant agreement and warrant certificate.

General

The applicable prospectus supplement will describe the terms of the series of warrants, including, where applicable, the following:including:

 

the title of the warrants;

theoffering price and aggregate number of warrants;warrants offered;

 

the price or prices atcurrency for which the warrants willmay be issued;purchased;

 

the designation, terms and number of securities purchasable upon exercise of warrants;

if applicable, the designation and terms of the securities if any, with which the warrants are issued and the number of warrants issued with each such security or each principal amount of such security;

 

if applicable, the date if any, on and after which the warrants and the related securities will be separately transferable;

 

in the case of warrants to purchase our common stock or preferred stock, the number of shares of common stock or preferred stock, as the case may be, purchasable upon the exercise of one warrant and the price at which each security purchasablethese shares may be purchased upon such exercise;

the effect of any merger, consolidation, sale or other disposition of our business on the warrant agreements and the warrants;

the terms of our rights to redeem or sell the warrants;

any provisions for changes to or adjustments in the exercise price or number of securities issuable upon exercise of warrants may be purchased;the warrants;

 

the datedates on which the right to exercise the warrants shallwill commence and the date on which that right shall expire;

 

the minimum or maximum amount ofmanner in which the warrant agreements and warrants which may be exercised at any one time;modified;

 

a discussion of any material U.S. federal income tax considerations;consequences of holding or exercising the warrants;

 

information with respect to book-entry procedures, if any; and .

any otherthe terms of the warrants, including terms, procedures and limitations relating to the exchange andsecurities issuable upon exercise of the warrants.warrants; and

 

any other specific terms, preferences, rights or limitations of or restrictions on the warrants.

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Exercise

Each warrant will entitle the holder to purchase the securities that we specify in the applicable prospectus supplement at an exercise price set forth in the applicable prospectus supplement. Holders of the warrants may exercise the warrants at any time up to the specified time on the expiration date set forth in the applicable prospectus supplement. After such time on the expiration date, unexercised warrants will become void.

Holders may exercise the warrants by delivering the warrant certificate representing the warrants to be exercised, together with specified information, and paying the required amount to the warrant agent in immediately available funds, as provided in the applicable prospectus supplement. We will set forth on the reverse side of the warrant certificate and in the applicable prospectus supplement the information that the holder of the warrant will be required to deliver to the warrant agent.

Upon receipt of the required payment and the warrant certificate properly completed and duly executed at the corporate trust office of the warrant agent or any other office indicated in the applicable prospectus supplement, we will issue and deliver the securities purchasable upon such exercise. If fewer than all of the warrants represented by the warrant certificate are exercised, then we will issue a new warrant certificate for the remaining amount of warrants. If we indicate in the applicable prospectus supplement, holders of the warrants may surrender securities as all or part of the exercise price for warrants.

Governing Law

Unless we provide otherwise in the applicable prospectus supplement, the warrants and warrant agreements will be governed by and construed in accordance with the laws of the State of New York.

DESCRIPTION OF UNITS

We may issue, in one more series, units consisting of our common stock, preferred stock and warrants in any combination. We may issue units in such amounts and in such numerous distinct series as we determine. 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.

We will issue each series of units under a separate unit agreement to be entered into between us and the unit holders or a unit agent identified in the applicable prospectus supplement. The 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.

We will file as an exhibit to the registration statement of which this prospectus is a part, or 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 we issue such series, and the following summary is qualified in its entirety by reference to such exhibit. 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. You should read the following summary, the applicable prospectus supplement and any related free writing prospectuses, together with the complete applicable unit agreement and any supplemental agreements containing the terms of the units.

General

Each unit will be issued so that the holder of the unit is also the holder of each security included in the unit. Accordingly, the holder of a unit will have the rights and obligations of a holder of each included security. 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.

The applicable prospectus supplement will describe 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

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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 described under “Description of Capital Stock” and “Description of Warrants” will apply to each unit and to any common stock, preferred stock or warrant included in each unit, respectively.

Title

We, and any unit agent and any of their agents, may treat the registered holder of any unit certificate as an absolute owner of the units evidenced by that certificate for any purpose and as the person entitled to exercise the rights attaching to the units so requested, despite any notice to the contrary.

PLAN OF DISTRIBUTION

We may offer and sell the securities offered by this prospectus from time to time in any one or more of the following ways:

directly to one or more purchasers;

directly to or through brokers or dealers;

to the public through underwriting syndicates represented by managingsyndicates;

to one or more underwriters for resale to purchasers or to the public; or

directly to or through underwriters withoutagents.

Each time that we use this prospectus to offer securities, we will also provide a syndicate or through dealers or agents. The prospectus supplement with respect tothat contains the offered securities will set forth thespecific terms of the offering includingand the following:method of distribution, including:

 

the name or names of any underwriters, dealers or agents;

 

the amounts of the securities underwritten or purchased by each of them and any over-allotment options under which the underwriters may purchase additional securities from us;

the purchase price of the securities and the proceeds we will receiveto us from the sale;

 

any public offering price;

any underwriting discounts agency fees andor other items constituting underwriters’compensation to underwriters, dealers or agents’ compensation; andagents;

 

the initial public offering price and

any discounts, commissions or concessions allowed re-allowedor reallowed or paid to dealers.dealers; and

 

If any underwriters are involved in the offer and sale,securities exchange or market on which the securities will be acquired by the underwriters and may be resold by them, either at a fixed public offering price established atlisted.

The distribution of the time of offering orsecurities may be effected from time to time in one or more transactions at a fixed price or prices, which may be changed, at varying prices determined at the time of sale, or at negotiated prices.

Only those underwriters identified in the applicable prospectus supplement are deemed to be underwriters in connection with the securities offered in the prospectus supplement. If underwriters are used in the sale of any securities, the underwriters will acquire the securities for their own account and may resell the securities from time to time in one or more transactions, including negotiated transactions, at a fixed public offering price or otherwise, at prices related to prevailing marketvarying prices determined at the time of sale. Unless otherwiseWe may offer the securities to the public through underwriting syndicates represented by managing underwriters or directly through underwriters without a syndicate. The underwriters’ obligations to purchase any securities will be subject to certain conditions set forth in the applicable prospectus supplement, the obligationsunderwriting agreement. However, if they purchase any of the underwriters to purchase the securities, will be subject to

certain conditions precedent and the underwriters will generally be obligated to purchase all of the securities, describedother than the securities covered by any over-allotment option.

We may sell the securities through agents from time to time. The prospectus supplement will name any agent involved in the offer or sale of the securities, as well as any commissions we pay the agents. Generally, any agent will be acting on a best efforts basis for the period of its appointment.

We may authorize underwriters, dealers or agents to solicit offers by certain purchasers to purchase the securities from us at the public offering price set forth in the prospectus supplement ifpursuant to delayed delivery contracts providing for payment and delivery on a specified date in the future. The contracts will be subject only to

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those conditions set forth in the prospectus supplement, and the prospectus supplement will set forth any are purchased. Any initial public offering pricecommissions we pay for solicitation of these contracts.

Agents and any discounts or concessions allowed or re-allowed or paid to dealersunderwriters may be changed from timeentitled to time.

We may offer and sell the securities directly or through an agent or agents designatedindemnification by us from time to time. An agent may sell securities it has purchased from us as principal to other dealers for resale to investors and other purchasers, and may reallow all or any portion of the discount received in connection with the purchase from us to the dealers. After the initial offering of the securities, the offering price (in the case of securities to be resold at a fixed offering price), the concession and the discount may be changed. Any agent participating in the distribution of the securities may be deemed to be an “underwriter,” as that term is defined inagainst certain civil liabilities, including liabilities under the Securities Act of 1933, as amended, or to contribution with respect to payments which the agents or underwriters may be required to make in respect thereof. Agents and underwriters may be customers of, engage in transactions with, or perform services for us in the ordinary course of business.

Unless otherwise specified in the related prospectus supplement, each series of securities will be a new issue with no established trading market, other than shares of our common stock, which are listed on the NASDAQ Global Select Market. Any common stock sold pursuant to a prospectus supplement will be listed on NASDAQ, subject to official notice of issuance. We may elect to list preferred stock on an exchange, but we are not obligated to do so. It is possible that one or more underwriters may make a market in the securities, but such underwriters will not be obligated to do so and may discontinue any market making at any time without notice. We can offer no assurance as to the liquidity of, or the trading market for, any offered securities.

In connection with an offering, the underwriters may purchase and sell securities in the open market. These transactions may include short sales, stabilizing transactions and purchases to cover positions created by short sales. Short sales involve the sale by the underwriters of a greater number of securities than they are required to purchase in an offering. Stabilizing transactions consist of bids or purchases made for the purpose of preventing or retarding a decline in the market price of the securities so offered and sold.

If anywhile an offering is in progress. The underwriters are involvedalso may impose a penalty bid. This occurs when a particular underwriter repays to the underwriters a portion of the underwriting discount received by it because the underwriters have repurchased securities sold by or for the account of that underwriter in stabilizing or short-covering transactions. These activities by the offer and sale, they will be permitted to engage in transactions thatunderwriters may stabilize, maintain or otherwise affect the market price of the securities. These transactionsAs a result, the price of the securities may include over-allotment transactions, purchases to cover “short” positions createdbe higher than the price that otherwise might exist in the open market. If these activities are commenced, they may be discontinued by the underwriterunderwriters at any time. Underwriters may engage in connection with the offering, and the imposition of penalty bids.over-allotment. If an underwriter createsany underwriters create a short position in the securities in connection with thean offering i.e., if it sellsin which they sell more securities than are set forth on the cover page of the applicable prospectus supplement, the underwriterunderwriters may reduce that short position by purchasing the securities in the open market.

In general, purchasescompliance with the guidelines of a securitythe Financial Industry Regulatory Authority, Inc., or FINRA, the maximum discount or commission to reduce a short position could causebe received by any FINRA member or independent broker-dealer may not exceed 8% of the aggregate offering price of the securityshares offered pursuant to be higher than it might bethis prospectus and any applicable prospectus supplement.

EXPERTS

The consolidated financial statements of FARO Technologies, Inc. as of December 31, 2011 and 2010 and for each of the years in the absence of such purchases. As noted above, underwriters may also choose to impose penalty bids on other underwriters and/or selling group members. This means that if underwriters purchase securities on the open market to reduce their short position or to stabilize the pricethree-year period ended December 31, 2011, and management’s assessment of the securities, they may reclaim the amounteffectiveness of the selling concession from those underwriters and/or selling group members who sold such securitiesinternal control over financial reporting as part of the offering.

Neither we nor any underwriter make any representation or prediction as to the direction or magnitudeDecember 31, 2011, all of any effect that the transactions described above may havewhich appear in FARO’s Annual Report on the price of the securities. In addition, neither we nor any underwriter make any representation that such underwriter will engage in such transactions or that such transactions, once commenced, will not be discontinued without notice.

Underwriters, dealers and agents may be entitled, under agreements entered into with us, to indemnification by us against some liabilities, including liabilities under the Securities Act of 1933, as amended.

The place and time of deliveryForm 10-K for the securitiesyear ended December 31, 2011, have been incorporated by reference in respect of which this prospectus is delivered will be set forthand elsewhere in the applicable prospectus supplement if appropriate.

Unless otherwise indicatedregistration statement in reliance upon the prospectus supplement, each seriesreports of offered securities will be a new issueGrant Thornton LLP, independent registered public accounting firm, upon the authority of securities for which there currently is no market, other than the common stock, which is quoted on the Nasdaq National Market. Any underwriters to whom securities are sold for public offeringsaid firm as experts in accounting and sale may make a market in such series of securities as permitted by applicable laws and regulations, but such underwriters will not be obligated to do so, and any such market making may be discontinued at any time without notice. Accordingly, there can be no assurance as to the development or liquidity of any market for the securitiesauditing.

Underwriters, agents and dealers may engage in transactions with or perform services, including various investment banking and other services, for us and/or any of our affiliates in the ordinary course of business.

LEGAL MATTERS

Certain legal matters with respect to the validity of the securities offered herebyby this prospectus will be passed upon for FARO by FoleyAlston & LardnerBird LLP Tampa, Florida, and forin Atlanta, Georgia. If legal matters in connection with offerings made pursuant to this prospectus are passed upon by counsel to any underwriters, dealers or agents, bysuch counsel will be named in the applicable prospectus supplement. Attorneys with Foley & Lardner LLP representing FARO with respect to this offering beneficially owned approximately 2,000 shares of common stock of FARO as of the date of this prospectus.

EXPERTS

The consolidated financial statements of FARO Technologies, Inc. appearing in FARO Technologies, Inc.’s Annual Report (Form 10-K) for the year ended December 31, 2003, have been audited by Ernst & Young LLP, independent registered public accounting firm, as set forth in their report thereon included therein and incorporated herein by reference. Such consolidated financial statements are incorporated herein by reference in reliance upon such report given on the authority of such firm as experts in accounting and auditing.

WHERE YOU CAN FIND MORE INFORMATION

We file annual, quarterly and special reports, proxy statements, and other information with the Securities and Exchange Commission. You may read and copy any materials we file with the Commission at the Commission’s public reference room at 450 Fifth Street, N.W., Washington, D.C. 20549. Please call the Commission at 1-800-SEC-0330 for more information on its public reference rooms. The Commission also maintains an Internet Website at http://www.sec.gov that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the Commission.

We have filed a registration statement on Form S-3 to register with the Commission the securities described herein. This prospectus is a part of that registration statement and constitutes a prospectus of FARO. As allowed by Commission rules, this prospectus does not contain all the information that can be found in the registration statement or the exhibits to the registration statement.

INCORPORATION OF CERTAIN INFORMATION BY REFERENCE

The CommissionSEC allows us to “incorporate by reference” into this prospectus the information we file with them, whichthe SEC. This means that we can disclose important information to you by referring you to those documents.documents without restating that information in this document. The information incorporated by reference into this prospectus is considered to be a part of this prospectus, and later information that we file with the CommissionSEC after the date of this prospectus will automatically update and supersede the information contained in this information.prospectus and in the documents listed below. We

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incorporate by reference into this prospectus the documents listed below and any future filings we makemade by us with the CommissionSEC under Sections 13(a), 13(c), 14 or 15(d) of the Securities Exchange Act, of 1934, as amended,including reports filed after the date of thisthe initial filing of the registration statement and beforeprior to the effectiveness of thisthe registration statement, and any filings made from the date of this prospectus until we sell all of the securities under this prospectus as supplemented. We incorporate by reference the following documents (exceptfile a post-effective amendment to the extent superseded by information in this registration statement that indicates that all securities offered have been sold or any documents subsequently filed with the Commission):that deregisters all securities that remain unsold:

 

Annual Report on Form 10-K for the year ended December 31, 2003 (including information specifically incorporated by reference into our Form 10-K from our definitive Proxy Statement).

Quarterly Report on Form 10-Q for the quarter ended October 2, 2004, filed with the Commission on November 10, 2004.
(a)The Company’s Annual Report on Form 10-K for the year ended December 31, 2011, filed with the SEC on February 28, 2012, as amended by 10-K/As filed on March 28, 2012 and August 24, 2012;

 

Quarterly Report on Form 10-Q for the quarter ended July 3, 2004, filed with the Commission on August 12, 2004
(b)The Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2012, filed with the SEC on May 1, 2012;

 

Quarterly Report on Form 10-Q for the quarter ended April 3, 2004, filed with the Commission on May 14, 2004.
(c)The Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2012, filed with the SEC on July 31, 2012;

 

Current Report on Form 8-K, filed with the Commission on April 16, 2004.
(d)The Company’s Quarterly Report on Form 10-Q for the quarter ended September 29, 2012, filed with the SEC on October 31, 2012;

 

Current Report on Form 8-K filed with the Commission on April 28, 2004.
(e)The Company’s Current Reports on Form 8-K, filed with the SEC on February 28, 2012, March 19, 2012, May 21, 2012, June 22, 2012, October 16, 2012 and November 7, 2012; and

 

Current Report on Form 8-K filed with the Commission on May 7, 2004.

Current Report on Form 8-K filed with the Commission on July 15, 2004.

Current Report on Form 8-K filed with the Commission on August 4, 2004.

Current Report on Form 8-K filed with the Commission on October 15, 2004.

Current Report on Form 8-K filed with the Commission on October 29, 2004.

Current Report on Form 8-K filed with the Commission on November 5, 2004.

Current Report on Form 8-K filed with the Commission on November 18, 2004.

(f)The description of our common stock contained in the Company’s Registration Statement on Form 8-A filed under Section 12 of the Exchange Act on September 15, 1997, including all amendments or reports filed for the purpose of updating such description.

The information incorporated by reference is considered to be part of this prospectus, and information that we file later with the SEC will automatically update and supersede this information, as applicable. Any statement contained in this prospectus or in a document, all or a portion of which is incorporated or deemed to be incorporated by reference herein, shall be deemed to be modified or superseded for purposes of this prospectus to the extent that a statement contained in this prospectus or in any other subsequently filed document that also is or is deemed to be incorporated by reference herein modifies or supersedes such statement. Any such modified or superseded statement shall not be deemed, except as so modified or amended, to constitute a part of this prospectus.

This prospectus is a part of our Registration Statement on Form 8-A12G,S-3 filed with the Commission on September 15, 1997,SEC. This prospectus does not contain all of the information set forth in the registration statement and the exhibits to the registration statement. Statements about the contents of agreements or other documents contained in this prospectus or in any amendmentsother filing to which we refer you are not necessarily complete. You should review the actual copy of these documents filed as an exhibit to the registration statement or reportssuch other filing. You may obtain a copy of the registration statement and the exhibits filed forwith it from the purposeSEC at any of updating such description.

the locations listed above.

On request weWe will provide at no cost to each person, including any beneficial owner, who receivesto whom a copy of this prospectus is delivered, a copy of any or all of the documentsinformation that we have incorporated inby reference into this prospectus by reference. We will not provide(excluding exhibits to any such documents however, unless such exhibits are specifically incorporated by reference into those documents. Writtenreference). We will provide this information upon written or telephone requests for such copies should be addressedoral request at no cost to FARO’s executive offices locatedthe requester. You may request this information by contacting our corporate headquarters at 125the following address: 250 Technology Park, Lake Mary, Florida 32746, Attention: Gregory A. Fraser, telephone numberKeith S. Bair, or by calling (407) 333-9911.

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$125,000,000WHERE YOU CAN FIND MORE INFORMATION

We file annual, quarterly and current reports, proxy statements and other information with the SEC. You may read and copy, at prescribed rates, any documents we have filed with the SEC at its Public Reference Room located at 100 F Street, N.E., Washington, D.C. 20549. You may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. We also file these documents with the SEC electronically. You can access the electronic versions of these filings on the SEC’s Internet website found at http://www.sec.gov. You can also obtain copies of materials we file with the SEC from our Internet website found at www.faro.com. The information on or accessible through our Internet website is not considered part of this prospectus.

 

DEBT SECURITIES, COMMON STOCK AND WARRANTS

No dealer, salesperson or other person is authorized to give any information or to represent anything not contained in this prospectus. You must not rely on any authorized information or representations. This prospectus is an offer to sell only the securities it describes, and only under circumstances and in jurisdictions where it is lawful to do so. The information contained in this prospectus is current only as of its date.

, 2005

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PART II

II—INFORMATION NOT REQUIRED IN THE PROSPECTUS

 

ItemITEM 14.Other Expenses of Issuance and DistributionOTHER EXPENSES OF ISSUANCE AND DISTRIBUTION.

The following table sets forthbelow itemizes the costs and expenses payable by the Registrantregistrant in connection with the offerings described in this registration statement. In addition to the costs and expenses set forth below, we will pay any selling commissions and brokerage fees and any applicable taxes and fees and disbursements with respect to securities registered by this prospectus which we may sell, but these fees cannot be predicted with any certainty at this time due to the uncertainty as to the number of such securities. Allissuance of the securities being registered hereunder, other than underwriting discounts and commissions. All amounts shown are estimates, except the Securities and Exchange CommissionSEC registration fee.fee are estimated.

 

SEC registration fee

  $14,712.50

Legal fees and expenses

   *

Accounting fees and expenses

   *

Nasdaq fees

   *

Indenture trustees’ fees and expenses

   *

Printing fees

   *

Rating agency fees

   *

Miscellaneous expenses

   *

Total

  $*

SEC Registration Fee

  $34,100  

Legal Fees and Expenses

  $*  

Accounting Fees and Expenses

  $*  

Nasdaq Fees

  $*  

Transfer Agent’s Fees and Expenses

  $*  

Printing and Duplicating Expenses

  $*  

Miscellaneous Expenses

  $*  

Total

  $*  

 

*To be filed with a current report onby amendment, Form 8-K or an amendment to the registration statement.Rule 424 filing.

 

ItemITEM 15.Indemnification of Directors and OfficersINDEMNIFICATION OF DIRECTORS AND OFFICERS.

The Company is a Florida corporation. Reference is made to Section 607.0850 of the Florida Business Corporation Act (the “Florida Act”“FBCA”), which permits a Florida corporation to indemnify a present or former director or officer of the corporation (and certain other persons serving at the request of the corporation in related capacities) for liabilities, including legal expenses, arisingwho was or is a party to a proceeding by reason of his service in that capacity, for liabilities incurred in connection with such capacityproceeding, if such person shall havethe director or officer 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, inwith respect to any criminal proceeding, if such personhe had no reasonable cause to believe his conduct was unlawful. However, in the case of actions brought by or in the right of the corporation, no indemnification may be made with respect to any matter as to which such director or officer shall have beenis adjudged liable, exceptunless and to the extent a court determines that, despite the adjudication of liability but in certainview of all circumstances, the director or officer is fairly and reasonably entitled to indemnity. In the case of actions brought by or in the right of the corporation for which indemnification is proper, indemnification is limited circumstances.

to expenses and amounts paid in settlement that are actually and reasonably incurred in connection with the defense or settlement of such proceeding, and that do not exceed, in the judgment of the corporation’s board of directors, the estimated expense of litigating the proceeding to conclusion. The corporation must also indemnify a director or officer who is successful on the merits or otherwise in defense of such proceedings, or in defense of any matter in such proceedings, against expenses actually and reasonably incurred by him in connection with the proceeding. Section 607.0850 of the FBCA further provides that a corporation may not indemnify or advance expenses to a director or officer if a final adjudication establishes that his actions, or omissions to act, were material to the cause of action and constitute (i) a violation of criminal law (unless he had reasonable cause to believe his conduct was lawful or had no reasonable cause to believe his conduct was unlawful), (ii) a transaction from which he derived improper personal benefit, (iii) in the case of a director, an unlawful distribution, or (iv) willful misconduct or conscious disregard for the best interests of the corporation in a proceeding by or in right of the corporation to procure a judgment in its favor or in a proceeding by or in right of a shareholder.

The Company’s Articlesarticles of Incorporationincorporation and bylaws provide that the Company shall indemnify directors and executive officers to the fullest extent now or hereafter permitted by the Florida Act. In addition,FBCA. The Company’s articles of incorporation and bylaws further state that the Company may enter into Indemnification Agreements with its directors and executive officers in which the Registrant has agreed to indemnify such persons to the fullest extent now or hereafter permitted by the Florida Act. The indemnification provided byunder the Florida Actarticles of incorporation and the Company’s Bylawsbylaws is not exclusive of any other rights to which a director or officer may be otherwise entitled.

The Company has also purchased insurance with respect to, among other things, liabilities that may arise under the statutory provisions referred to above.

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The general effect of the foregoing provisions may be to reduce the circumstances in which an officer or director may be required to bear the economic burden of the foregoing liabilities and expense.

 

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ItemITEM 16.ExhibitsEXHIBITS.

 

Exhibit
Number

Number


  

Description of Exhibit


1.1  Form of Underwriting Agreement*
3.1(1)Registrant’s Certificate of Incorporation
3.2(2)Registrant’s Bylaws
4.1(3)  4.1  Specimen Certificate for Registrant’s Common Stock (filed as Exhibit 4.1 to the Company’s Registration Statement on Form S-1, No. 333-32983, and incorporated herein by reference)
4.2  Amended and Restated Articles of Incorporation (filed as Exhibit 3.1 to the Company’s Registration Statement on Form of Senior Indenture (including form of Senior Note)*S-1, No. 333-32983, and incorporated herein by reference)
4.3  Amended and Restated Bylaws (Filed as Exhibit 3.1 to Registrant’s Current Report on Form of Subordinated Indenture (including form of Subordinated Note)*8-K, dated February 3, 2010, and incorporated herein by reference)
4.4  Form of Senior Debt Security*Specimen Preferred Stock Certificate*
4.5  Form of Subordinated Debt Security*Preferred Stock Certificate of Designation*
4.6Form of Convertible Debt Security*
4.7  Form of Warrant Agreement (together with form of Warrant Certificate)*
  4.7Form of Unit Agreement*
5.1  Opinion of FoleyAlston & Lardner, LLP*Bird LLP
12.1  Statement of Computation of Ratio of EarningsCombined Fixed Charges and Preference Dividends to Fixed ChargesEarnings*
23.1  Consent of Foley & Lardner,Grant Thornton LLP (included in Exhibit 5.1)
23.2Consent of Ernst & Young, LLP, Independent Registered Public Accounting Firm
24.1  PowersPower of Attorney (included on the signature page herein).
25.1Form T-l Statement of Eligibility of Trustee for Senior Indenture under Trust Indenture Act of 1939*
25.2Form T-l Statement of Eligibility of Trustee for Subordinated Indenture under the Trust Indenture Act of 1939*to this Registration Statement)

 

*To be filed by amendment byor as an exhibit to a report on Form 8-K pursuantdocument to Item 601 of Regulation S-K or, where applicable,be incorporated herein by reference from a subsequent filingherein in accordanceconnection with Section 305(b)(2)an offering of the Trust Indenture Act of 1939.

(1)Incorporated by reference to Exhibit 3.1 to the Registrant’s Registration Statement on Form S-1 No. 333-32983.

(2)Incorporated by reference to Exhibit 3.2 to the Registrant’s Registration Statement on Form S-1 No. 333-32983.

(3)Incorporated by reference to Exhibit 4.1 to the Registrant’s Registration Statement on Form S-1 No. 333-32983.our securities.

 

ItemITEM 17.UndertakingsUNDERTAKINGS.

A. Rule 415 Offering

WeThe undersigned registrant hereby undertake:

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
(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 the 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 20% change in the maximum aggregate offering price set forth in the “Calculation of Registration 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;

 

II-2


(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 SEC pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than 20 percent change in the maximum aggregate offering price set forth in the “Calculation of Registration Fee” table in the effective registration statement;

(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 (1)(i) and (1)(ii) do not apply if the information required to be included in a post-effective amendment by those paragraphs is contained in periodic reports filed with or furnished to the SEC by us pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 that are incorporated by reference in 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.

(5) That, for the purpose of determining liability under the Securities Act of 1933 to any purchaser:

We

(A)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

(B)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 the 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.

(6) 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:

The undersigned registrant undertakes that 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 prospectuses 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. Filings Incorporating Subsequent Exchange Act Documents By Reference

The undersigned registrant hereby undertakeundertakes that, for purposes of determining any liability under the Securities Act of 1933, each filing of ourthe 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 ouran 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 initialbona fide offering thereof.

 

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H. Request for Acceleration of Effective Date or Filing of Registration Statement Becoming Effective Upon Filing

Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to our directors, officers and controlling persons of the registrant pursuant to the foregoing provisions, described in Item 15 or otherwise, we havethe registrant has been advised that in the opinion of the SECSecurities and Exchange Commission such indemnification is against public policy as expressed in the Securities Act of 1933 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 oura 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, wethe registrant will, unless in the opinion of ourits counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by itselfit is against public policy as expressed in the Securities Act of 1933 and will be governed by the final adjudication of such issue.

I. Registration Statement Permitted by Rule 430A Under the Securities Act of 1933

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WeThe undersigned registrant hereby undertakeundertakes that:

(1) For purposes of determining any liability under the Securities Act of 1933, the information omitted from the form of prospectus filed as part of this registration statement in reliance upon Rule 430A and contained in a form of prospectus filed by the registrant pursuant to Rule 424(b)(l) or (4) or 497(h) under the Securities Act shall be deemed to be part of this registration statement as of the time it was declared effective.

(2) For the purpose of determining any liability under the Securities Act of 1933, 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.

We hereby undertake 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 (the “Trust Indenture Act”) in accordance with the rules and regulations prescribed by the SEC under Section 305(b)(2) of the Trust Indenture Act

 

II-4


SIGNATURES

Pursuant to the requirements of the Securities Act of 1933, FARO Technologies, Inc.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 Tampa,the City of Lake Mary, State of Florida, as of January 6, 2005.on December 21, 2012.

 

FARO TECHNOLOGIES, INC.

By:

/s/ Keith S. Bair

/s/ Simon RaabKeith S. Bair

Name: Simon Raab

Title: Chairman of the BoardSenior Vice President and Chief ExecutiveFinancial Officer


POWER OF ATTORNEY

KNOW ALL PERSONSMEN BY THESE PRESENTS,that each person whose signature appears below hereby constitutes and appoints Simon RaabKeith S. Bair and Gregory Fraser,Jay W. Freeland, and each or any one of them, individually (with full power to each of them to act alone),as his or her true and lawful attorney-in-factattorneys-in-fact and agent,agents, with full power of substitution and resubstitution, for him or her and in his or her name, place and stead, in any and all capacities, to do any and all things and execute any and all instruments that such attorney-in-fact may deem necessary or advisable under the Securities Act of 1933, and any rules regulations and requirements of the Securities Exchange Commission in connection with the registration of these securities of the registrant, including to sign this registration statement and any and all amendments (including post-effective amendments) and additions to this registration statement and to file the same, with all exhibits thereto and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorneys-in-fact and agents and each of them, full power and authority to do and perform each and every act and thing requisite and necessary or advisable to be done, in and about the premises, as fully to all intents and purposes as he or shethey might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or their or his or her substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

Pursuant to the requirements of the Securities Act of 1933, this registration statement has been signed by the following persons in the capacities indicated, as of January 6, 2005.and on the dates indicated.

 

SignatureSignatures


  

Title


Date

/s/ Simon RaabJay W. Freeland


Simon RaabJay W. Freeland

  Chairman of the Board,

President, Chief Executive Officer and Director (Principal

(Principal Executive Officer)

December 21, 2012

/s/ Gregory A. FraserKeith S. Bair


Gregory A. FraserKeith S. Bair

  Executive

Senior Vice President Secretary, Treasurer, and Director (PrincipalChief Financial Officer

(Principal Financial

and Accounting Officer)

December 21, 2012

/s/ Hubert d’AmoursLynn Brubaker


Hubert d’AmoursLynn Brubaker

  

Director

December 21, 2012

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Signature/s/ John E. Caldwell


John E. Caldwell

  

TitleDirector


December 21, 2012

/s/ Stephen R. Cole


Stephen R. Cole

  

Director

December 21, 2012

/s/ Andre JulienJohn Donofrio


Andre JulienJohn Donofrio

  

Director

December 21, 2012

/s/ Norman H. SchipperSimon Raab


Norman H. SchipperSimon Raab

Chairman of the Board and Director

December 21, 2012

/s/ Marvin R. Sambur

Marvin R. Sambur

  

Director


John E. Caldwell

 

Director

December 21, 2012

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EXHIBIT INDEX TO THE EXHIBITS

 

Exhibit
Number

Number


  

Description of Exhibit


1.1  Form of Underwriting Agreement*
3.1(1)Registrant’s Certificate of Incorporation
3.2(2)Registrant’s Bylaws
4.1(3)  4.1  Specimen Certificate for Registrant’s Common Stock (filed as Exhibit 4.1 to the Company’s Registration Statement on Form S-1, No. 333-32983, and incorporated herein by reference)
4.2  Amended and Restated Articles of Incorporation (filed as Exhibit 3.1 to the Company’s Registration Statement on Form of Senior Indenture (including form of Senior Note)*S-1, No. 333-32983, and incorporated herein by reference)
4.3  Amended and Restated Bylaws (Filed as Exhibit 3.1 to Registrant’s Current Report on Form of Subordinated Indenture (including form of Subordinated Note)*8-K, dated February 3, 2010, and incorporated herein by reference)
4.4  Form of Senior Debt Security*Specimen Preferred Stock Certificate*
4.5  Form of Subordinated Debt Security*Preferred Stock Certificate of Designation*
4.6Form of Convertible Debt Security*
4.7  Form of Warrant Agreement (together with form of Warrant Certificate)*
  4.7Form of Unit Agreement*
5.1  Opinion of FoleyAlston & Lardner, LLP*Bird LLP
12.1  Statement of Computation of Ratio of EarningsCombined Fixed Charges and Preference Dividends to Fixed ChargesEarnings*
23.1  Consent of Foley & Lardner,Grant Thornton LLP (included in Exhibit 5.1)*
23.2Consent of Ernst & Young, LLP, Independent Registered Public Accounting Firm
24.1  PowersPower of Attorney (included on the signature page herein).
25.1Form T-l Statement of Eligibility of Trustee for Senior Indenture under Trust Indenture Act of 1939*
25.2Form T-l Statement of Eligibility of Trustee for Subordinated Indenture under the Trust Indenture Act of 1939*to this Registration Statement)

 

*To be filed by amendment byor as an exhibit to a report on Form 8-K pursuantdocument to Item 601 of Regulation S-K or, where applicable,be incorporated herein by reference from a subsequent filingherein in accordanceconnection with Section 305(b)(2)an offering of the Trust Indenture Act of 1939.our securities.

(1)Incorporated by reference to Exhibit 3.1 to the Registrant’s Registration Statement on Form S-1 No. 333-32983.

(2)Incorporated by reference to Exhibit 3.2 to the Registrant’s Registration Statement on Form S-1 No. 333-32983.

(3)Incorporated by reference to Exhibit 4.1 to the Registrant’s Registration Statement on Form S-1 No. 333-32983.

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