Exhibit 10.39
EXECUTION COPY
 
AMENDMENT NO. 2
 
Dated as of October 26, 2009
 
to
 
LOAN AGREEMENT
 
Dated as of June 8, 2009
 
     THIS AMENDMENT NO. 2 (“Amendment”) is made as of October 26, 2009 by and
among Photronics, Inc. (the “Borrower”), the financial institutions listed on
the signature pages hereof and JPMorgan Chase Bank, National Association, as
Administrative Agent (in such capacity, the “Administrative Agent”) and as
Collateral Agent (in such capacity, the “Collateral Agent”), under that certain
Loan Agreement dated as of June 8, 2009 by and among the Borrower, the Lenders
and the Administrative Agent (as amended by that certain Amendment No. 1
thereto, dated as of September 2, 2009, and as may be further amended,
supplemented or otherwise modified from time to time, the “Loan Agreement”).
Capitalized terms used herein and not otherwise defined herein shall have the
respective meanings given to them in the Loan Agreement.
 
     WHEREAS, the Borrower has requested that the Lenders, the Administrative
Agent and the Collateral Agent agree to certain amendments to the Loan
Agreement;
 
     WHEREAS, the Lenders party hereto, the Administrative Agent and the
Collateral Agent have agreed to such amendments on the terms and conditions set
forth herein;
 
     NOW, THEREFORE, in consideration of the premises set forth above, the terms
and conditions contained herein, and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Borrower, the
Lenders party hereto, the Administrative Agent and the Collateral Agent have
agreed to enter into this Amendment.
 
     1. Amendments to Loan Agreement. Effective as of the date of satisfaction
of the conditions precedent set forth in Section 2 below, Section 2.11(c) of the
Loan Agreement is amended to add the parenthetical “(provided, however, that in
the case of any Net Proceeds received in connection with the Chinese Facility
Sale, within three (3) Business Days after approval by SAFE that the Borrower
may repatriate such Net Proceeds to the United States of America)” immediately
after the phrase “within three (3) Business Days after such net Proceeds are
received by the Borrower or any Subsidiary” appearing therein.
 
     2. Conditions of Effectiveness. The effectiveness of this Amendment is
subject to the conditions precedent that the Administrative Agent shall have
received counterparts of this Amendment duly executed by the Borrower, the
Required Lenders and the Administrative Agent and the Consent and Reaffirmation
attached hereto duly executed by the Subsidiary Guarantors.
 
     3. Representations and Warranties of the Borrower and Acknowledgements and
Confirmations. The Borrower hereby represents and warrants as follows:
 

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     (a) This Amendment and the Loan Agreement, as amended hereby, constitute
legal, valid and binding obligations of the Borrower and are enforceable against
the Borrower in accordance with their terms, subject to applicable bankruptcy,
insolvency, reorganization, moratorium or other laws affecting creditors’ rights
generally and subject to general principles of equity, regardless of whether
considered in a proceeding in equity or at law.
 
     (b) As of the date hereof and giving effect to the terms of this Amendment,
(i) no Default shall have occurred and be continuing and (ii) the
representations and warranties of the Borrower set forth in the Loan Agreement,
as amended hereby, are true and correct as of the date hereof.
 
     (c) The Borrower (and by its execution of the Consent and Reaffirmation
attached hereto, each Subsidiary Guarantor) hereby acknowledges and confirms
that (i) it does not have any grounds, and hereby agrees not to challenge (or to
allege or to pursue any matter, cause or claim arising under or with respect to)
the effectiveness, genuineness, validity, collectibility or enforceability of
the Loan Agreement or any of the other Loan Documents, the Secured Obligations,
the Liens securing such Secured Obligations, or any of the terms or conditions
of any Loan Document and (ii) it does not possess (and hereby forever waives,
remises, releases, discharges and holds harmless the Lenders, the Agents and
their respective affiliates, stockholders, directors, officers, employees,
attorneys, agents and representatives and each of their respective heirs,
executors, administrators, successors and assigns (collectively, the
“Indemnified Parties”) from and against, and agrees not to allege or pursue) any
action, cause of action, suit, debt, claim, counterclaim, cross-claim, demand,
defense, offset, opposition, demand and other right of action whatsoever,
whether in law, equity or otherwise (which it, all those claiming by, through or
under it, or its successors or assigns, have or may have) against the
Indemnified Parties, or any of them, by reason of, any matter, cause or thing
whatsoever, with respect to events or omissions occurring or arising on or prior
to the date hereof and relating to the Loan Agreement or any of the other Loan
Documents (including, without limitation, with respect to the payment,
performance, validity or enforceability of the Secured Obligations, the Liens
securing the Secured Obligations or any or all of the terms or conditions of any
Loan Document) or any transaction relating thereto.
 
     4. Reference to and Effect on the Loan Agreement.
 
     (a) Upon the effectiveness hereof, each reference to the Loan Agreement in
the Loan Agreement or any other Loan Document shall mean and be a reference to
the Loan Agreement as amended hereby.
 
     (b) Except as specifically amended above, the Loan Agreement and all other
documents, instruments and agreements executed and/or delivered in connection
therewith shall remain in full force and effect and are hereby ratified and
confirmed.
 
     (c) The execution, delivery and effectiveness of this Amendment shall not
operate as a waiver of any right, power or remedy of the Administrative Agent or
the Lenders, nor constitute a waiver of any provision of the Loan Agreement or
any other documents, instruments and agreements executed and/or delivered in
connection therewith.
 
     5. Governing Law. This Amendment shall be construed in accordance with and
governed by the law of the State of New York.
 
     6. Headings. Section headings in this Amendment are included herein for
convenience of reference only and shall not constitute a part of this Amendment
for any other purpose.
 
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     7. Counterparts. This Amendment may be executed by one or more of the
parties hereto on any number of separate counterparts, and all of said
counterparts taken together shall be deemed to constitute one and the same
instrument. Signatures delivered by facsimile or PDF shall have the same force
and effect as manual signatures delivered in person.
 
[Signature Pages Follow]
 
3
 

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     IN WITNESS WHEREOF, this Amendment has been duly executed as of the day and
year first above written.
 

PHOTRONICS, INC., as the Borrower     By:     Name: Title:

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
Signature Page to Amendment No. 2
Photronics, Inc.
Loan Agreement dated as of June 8, 2009
 

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JPMORGAN CHASE BANK, NATIONAL ASSOCIATION, individually as a Lender and as
Administrative Agent     By:     Name: Title:     JPMORGAN CHASE BANK, NATIONAL
ASSOCIATION, as Collateral Agent     By:     Name: Title:

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
Signature Page to Amendment No. 2
Photronics, Inc.
Loan Agreement dated as of June 8, 2009
 

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HSBC BANK USA, NATIONAL ASSOCIATION, as a Lender     By:     Name: Title:

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
Signature Page to Amendment No. 2
Photronics, Inc.
Loan Agreement dated as of June 8, 2009
 

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CITIBANK, N.A., as a Lender     By:     Name: Title:

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
Signature Page to Amendment No. 2
Photronics, Inc.
Loan Agreement dated as of June 8, 2009
 

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BANK OF AMERICA, N.A., as a Lender     By:     Name: Title:

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
Signature Page to Amendment No. 2
Photronics, Inc.
Loan Agreement dated as of June 8, 2009
 

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CONSENT AND REAFFIRMATION
 
     Each of the undersigned hereby acknowledges receipt of a copy of the
foregoing Amendment No. 2 to the Loan Agreement dated as of June 8, 2009 (as
amended by that certain Amendment No. 1 thereto, dated as of September 2, 2009,
and as may be further amended, supplemented or otherwise modified from time to
time, the “Loan Agreement”) by and among Photronics, Inc. (the “Borrower”), the
financial institutions from time to time party thereto (the “Lenders”) and
JPMorgan Chase Bank, National Association, as Administrative Agent (the
“Administrative Agent”), which Amendment No. 2 is dated as of October 26, 2009
(the “Amendment”). Capitalized terms used in this Consent and Reaffirmation and
not defined herein shall have the meanings given to them in the Loan Agreement.
Without in any way establishing a course of dealing by the Administrative Agent
or any Lender, each of the undersigned consents to the Amendment and reaffirms
the terms and conditions of the Subsidiary Guaranty and any other Loan Document
executed by it and acknowledges and agrees that such agreements and each and
every such Loan Document executed by the undersigned in connection with the Loan
Agreement remains in full force and effect and is hereby reaffirmed, ratified
and confirmed. All references to the Loan Agreement contained in the
above-referenced documents shall be a reference to the Loan Agreement as so
modified by the Amendment and as the same may from time to time hereafter be
amended, modified or restated.
 
Dated: October 26, 2009
 
[Signature Page Follows]
 

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ALIGN-RITE, INC.      ALIGN-RITE INTERNATIONAL, INC.     By:     By:     Name:
Name: Title: Title:     PHOTRONICS ARIZONA, INC.   PHOTRONICS CALIFORNIA, INC.  
  By:     By:     Name: Name: Title: Title:     PHOTRONICS TEXAS, INC.
PHOTRONICS TEXAS ALLEN, INC. (formerly   known as Photronics-Toppan Texas, Inc.)
  By:     Name: By:     Title: Name:   Title:   PHOTRONICS TEXAS I, LLC
PHOTRONICS TEXAS I, LP   By: Photronics Texas, Inc., its Sole Member By:
Photronics Texas, Inc., its General Partner     By:     By:     Name: Name:
Title: Title:     PHOTRONICS TEXAS II, LLC PHOTRONICS TEXAS II, LP   By:
Photronics-Toppan Texas, Inc., its Sole By: Photronics-Toppan Texas, Inc., its
General Member Partner     By:     By:     Name: Name: Title: Title:

 
 
 
 
 
 
Signature Page to Consent and Reaffirmation to Amendment No. 2
Photronics, Inc.
Loan Agreement dated as of June 8, 2009

 

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