Document:

Loan Facility Letter, dated July 1, 2004

 Exhibit 10.8 
  
 [Lloyds TSB letterhead] 
  
 29th June, 2004 
  
 The Directors 
 Cambridge Display Technology Limited 
 Greenwich House 
 Madingley Rise 
 Cambridge 
 Cambridgeshire 
 CB3 0TX 
  
 Dear Sirs, 
  
 US$15,000,000 REVOLVING LOAN FACILITY

  
 We, Lloyds TSE Bank plc (the “Bank”) are
pleased to offer to Cambridge Display Technology Limited (company registered number 2672530 and herein referred to as the “Borrower”) a loan facility of up to US$15,000,000 (fifteen million US dollars) (the
“Facility”) upon and subject to the terms and conditions of this letter. 
  

	 	1.	 	Definitions 

  
 “Acceptance Date” means the date of the signed acceptance of this letter by the Borrower. 
  
 “Accrued Interest” means at any particular
time the total of all interest payable by the Borrower to the Bank on the last day of each Interest Period then current. 
  
 “Associated Costs Rate” means an amount which the Bank shall determine from time to time to be necessary to compensate
the Bank for the cost or loss to it of complying with any liquidity, monetary control, or prudential requirements or of any other charge existing from time to time of the Bank of England, the Financial Services Authority or any other regulatory
authority to the extent that these relate to the amount of the drawing or the liabilities incurred to fund the drawing. 
  
 “Banking Facilities Letter” means the letter dated on or about the date of this letter addressed by the Bank to the
Borrower regarding the offer of foreign exchange and other banking facilities. 
  

 “Business Day” means a day other than a Saturday or a Sunday on which
banks and foreign exchange markets are open for general business in London and New York. 
  
 “Commitment Termination Date” means the date which is 1 month prior to the Expiry Date. 
  
 “Default Interest” means interest
calculated in accordance with the terms of Clause 7.3 of this letter and for the purposes of the requirements of Clause 2.1 of this letter shall be deemed to be an amount of US$500,000. 
  
 “Dollars” and “US$” means the lawful currency of the United States of
America and, in relation to all payments and transfers of funds to be made hereunder in Dollars, such funds as are customary on the date payment is made for settlement of international banking transactions through the New York Clearing House
Interbank Payments System (or such other Dollar funds as may be specified by the Bank to the Borrower in writing). 
  
 “Event of Default” means an event described in Clause 7.1 hereof or any circumstance which with the giving of notice
and/or the passing of time could become such an event. 
  
 “Expiry Date” means (a) the earlier of (i) the date which is 60 days before the date of expiry, prior to any automatic extension thereof, of the standby letter of credit from Wells Fargo Bank, N.A. referred to in Clause 4.2
hereof, and (ii) 29th June 2005, or (b) such later date as may from time to time be agreed pursuant to Clause 2.5
hereof. 
  
 “Facility Limit”
means US$15,000,000 subject to any cancellation or other reduction thereof within the terms of this letter. 
  
 “Financial Statement” means at any particular time the then latest audited balance sheet and profit and loss account
(each prepared on the same basis, containing a similar level of detail and in accordance with the same accounting principles as, and for an accounting reference period consistent with, the latest such balance sheet and profit and loss account
received by the Bank prior to the date of this letter) of the Borrower together with the notes to both. 
  
 “Interest Period” means the period for which a drawing hereunder is made, being 1 or 3 months, as specified by the
Borrower pursuant to the terms of this letter. 
  
 “IP Accounts” means the accounts of the Borrower with the Bank, each an “IP Account” as defined in the Letter of Understanding. 
  

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 “IP Collateral” means the IP Collateral of the Borrower as defined in
the Letter of Understanding. 
  
 “Letter
of Understanding” means a Letter of Understanding dated on or about the date of this letter, in form and substance acceptable to the Bank, addressed to the Bank from IPIFS Guarantee Corp. 
  
 “Notification Date” means in respect of a
drawing hereunder, the date falling 5 Business Days prior to the date on which such drawing is required. 
  
 “Offered Rate” means the rate offered to the Bank as determined by the Bank in the London interbank market at or about 11
a.m. on the relevant Notification Date for Dollar deposits in the amount of the drawing for the term of the relevant Interest Period. 
  
 “Proceeds of IP Collateral” means the Proceeds of IP Collateral as defined in the Letter of Understanding. 
  
 “Security Agreement” means the Security
Agreement (as defined in the Letter of Understanding) between the Borrower and IPIFS Guarantee Corp. dated on or about the date of this letter. 
  
 “Specified Account” means an account nominated as a Specified Account in a written notice from the Borrower to the Bank.
Such notice shall provide the Bank with all details necessary to enable the payment of moneys to the Specified Account and shall be otherwise in a form acceptable to the Bank. 
  
 “Sterling” and “£” means the lawful currency for the time being of
the United Kingdom. 
  
 “Subsidiary
Undertaking” shall have the meaning ascribed to it in Section 258 of the Companies Act 1985. During any period in which the Borrower does not have a Subsidiary Undertaking all references herein to “Subsidiary Undertakings”
of the Borrower shall be ignored and the appropriate text read and construed accordingly. 
  
 “Total Outstandings” means at any particular time the aggregate of all drawings outstanding at such time. Words denoting
the singular number only shall include the plural and vice-versa. 
  

	 	2.	 	Amount & Availability 

  
 2.1 Subject to the terms hereof the Facility shall remain available until and the Borrower may make drawings from time to time hereunder on any Business
Day prior to the Commitment Termination Date provided that: 
  
 (a) at the time of drawing the currency of the drawing is, in the Bank’s opinion, readily available to the Bank in the amount of the drawing and that the Bank is able to determine the applicable rate of interest pursuant to the terms
of this letter; and 
  

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 (b) the Bank shall have received a notice of drawing from the Borrower by 10 a.m. on the Notification
Date therefor. 
  
 The amount of each drawing shall be at least
US$250,000 and a multiple of US$50,000. No drawing may be effected on any particular day if the amount thereof together with the amount of interest payable on the last day of the Interest Period selected in respect thereof would otherwise cause the
aggregate of the Accrued Interest, the Default Interest and the Total Outstandings on that day to exceed the Facility Limit. 
  
 2.2 Each notice of drawing to be given pursuant to Clause 2.1 hereof shall specify the amount of the drawing, the account to which the proceeds of the
drawing are to be paid and the term of the Interest Period required. Such notice may be given by facsimile if the proceeds of the drawing are to be credited to a Specified Account. All other notices of drawing must be given by written notice.

  
 The proceeds o£ each drawing shall be utilised by the
Borrower for working capital purposes. 
  
 2.3 Each drawing shall
bear interest at the aggregate of 0.75% per annum, the Offered Rate and the Associated Costs Rate. The Borrower shall pay interest on each drawing in arrears on the last day of its Interest Period. 
  
 2.4 Each drawing shall be repaid on the last day of its Interest Period.

  
 All moneys outstanding hereunder on the Commitment Termination
Date shall be repaid by the Borrower on or before the Expiry Date. No Interest Period shall continue after the Expiry Date. 
  
 2.5 The Borrower may, by giving to the Bank not less than 1 month’s written notice expiring on or before the Expiry Date, apply to defer the Expiry
Date for a period of 1 year or such other period acceptable to the Bank. If the Bank agrees in writing to such deferment the Expiry Date shall be so deferred. The Borrower may make an application prior to each Expiry Date as so deferred provided
that in no event will the Expiry Date be extended beyond the date which is 3 years after the date of this letter and at no time may the Expiry Date be deferred to a date which is later than the date which is 60 days prior to the then current expiry
date of the Security. 
  
 If the Bank agrees to any such
deferment, the Borrower shall within 7 days of the date of the Bank’s agreement thereto pay to the Bank an extension fee equal to 0.125% 

  

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per annum of the Facility Limit at the date of such agreement for the period of the deferment. 
  
 For the avoidance of doubt any agreement by the Bank to defer the Expiry Date in accordance with the terms of this Clause
2.5 shall not require the prior consent of IPIFS Guarantee Corp. 
  

	 	3.	 	Additional Costs 

  
 3.1 If the application of or introduction of or any change in any applicable law, regulation, requirement, directive or request or any change in the
interpretation thereof by any governmental, fiscal, monetary or other authority charged with the administration thereof or by any self-regulating organisation or court of competent jurisdiction (in any case whether or not having the force of law)
shall subject the Bank or any holding company of the Bank to any tax, duty or other charge wish respect hereto or change the basis of taxation on any amounts payable to the Bank hereunder (except in respect of tax on the overall net income of the
Bank or any such holding company) or impose, modify or deem applicable requirements in respect of any liquid asset, special or other deposit or prudential or cash ratio or other requirements against, or the allocation by the Bank or any holding
company of the Bank of capital in support of, any assets or liabilities or contingent liabilities of, deposits with or for the account of, or advances or commitments made by the Bank, and this shall increase the cost (to the Bank or any such holding
company) of the Bank maintaining the Facility or shall reduce the amount of principal or interest receivable by the Bank or shall otherwise reduce the return to the Bank hereunder by an amount which the Bank deems material, the Borrower shall pay to
the Bank upon demand such additional amounts as are necessary to compensate for such increased cost or reduction. 
  
 3.2 All legal and other costs and expenses including any stamp and other duties and registration fees on a full indemnity basis and value added tax
thereon incurred by the Bank in assessing the Facility, in the preparation of this letter and of any amendment, waiver or consent letter at any time entered into, in the preparation, valuation, taking and release of any guarantee or
security given in connection with this letter and in connection with the enforcement, administration and preservation of its rights under the Facility shall be payable by the Borrower on demand. 
  
 3.3 On the Acceptance Date the Borrower shall pay to the Bank an arrangement
fee of US$75,000. 
  

	 	4.	 	Conditions Precedent & Security 

  
 4.1 The obligations of the Bank hereunder shall not come into effect unless and until it has received in form and substance satisfactory to it:

  
 (a) a copy of this letter duly signed on behalf of the
Borrower; 
  

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 (b) a certified copy of the board resolution of the Borrower authorising acceptance of this letter and
nominating the person(s) authorised to sign this letter on its behalf, and the person(s) authorised to give and confirm notices of drawing and other communications required hereunder, together with their duly authenticated specimen signatures;

  
 (c) the Letter of Understanding, in form and substance
acceptable to the Bank, addressed to the Bank from IPIFS Guarantee Corp.; and 
  
 (d) the security described in Clause 4.2 hereof together with such evidence as the Bank shall require to confirm that such security is in full force and effect. 
  
 4.2 All amounts owing to the Bank under or pursuant to the Facility shall at
all times be secured by a standby letter of credit, in form and substance acceptable to the Bank, from Wells Fargo Bank, N.A. for an amount which is not less than US$15,000,000 (the “Security”). 
  

	 	5.	 	Representations & Warranties 

  
 5.1 The Borrower hereby represents and warrants to the Bank that: 
  

(a) all action necessary to authorise its execution of this letter and the security documents required pursuant to the terms of this letter to which it
is a party and its performance of its respective obligations hereunder and thereunder has been duly taken and neither such execution nor such performance will cause any limit or restriction on its borrowing or other powers, or on the right or
ability of its directors (or any of them) to exercise such powers, to be exceeded or breached or will constitute or result in any breach of any agreement, law, requirement or regulation; 
  
 (b) no material litigation, administrative or judicial proceedings are presently pending or threatened against it or any of
its Subsidiary Undertakings; 
  
 (c) there has been no material
adverse change in the financial condition of it or any of its Subsidiary Undertakings since the date of the Financial Statement received by the Bank prior to the date of this letter; and 
  
 (d) no Event of Default has occurred and is continuing. 
  
 5.2 The Borrower shall be deemed to repeat the representations and warranties set out in Clause 5.1 hereof on each day on
which any amount remains owing to the Bank hereunder or for as long as the Bank is under any obligation to make the Facility available in each case as if made at each such time with reference to the facts and circumstances then existing. 

 

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 5.3 The Borrower hereby certifies to the Bank for the purposes of the Letter of Understanding and this
letter that the only deposits to be made to the IP Accounts shall be deposits which are licensing revenues or other Proceeds of IP Collateral. 
  

	 	6.	 	Undertakings of the Borrower 

  
 From the Acceptance Date and for as long as the Bank is under any obligation to make the Facility available or for as long as any moneys or liabilities
are owing or incurred to the Bank hereunder the Borrower: 
  
 6.1
shall not, and shall procure that none of its Subsidiary Undertakings shall, without the prior written consent of the Bank: 
  
 (a) factor or otherwise assign or deal with any book or other debts or securities for money now and from time to time due or owing to it or such a
Subsidiary Undertaking otherwise than by getting in and realising the same in the ordinary course of business as now conducted; 
  
 (b) materially change the nature of its respective business as now conducted; 
  
 (c) create or permit to subsist or arise any mortgage, charge, pledge or lien on any other security interest or encumbrance
(other than (i) the Security Agreement, and (ii) a lien arising solely by operation of law in the ordinary course of business) over any of its or such Subsidiary Undertaking’s present or future undertaking, property, revenue or assets (except
as provided herein); 
  
 (d) enter into or permit to subsist any
transaction which, in legal terms, is not secured indebtedness but which in the Bank’s opinion has an economic or a financial or commercial effect similar to that of secured indebtedness; or 
  
 (e) part with, sell, transfer, lease or otherwise dispose of (or attempt or
agree to do any such thing) the whole or any material part of its or such Subsidiary Undertaking’s undertaking, property, revenue or assets (either by a single transaction or a number of transactions whether related or not) other than for full
value on an arm’s length basis (save that no such parting with, sale, transfer, lease or other disposal may be made or entered into if it would breach the terms of any security document given to the Bank); and 
  
 6.2 shall supply to Lloyds TSB Corporate, Cambridge: 
  
 (a) as soon as practicable (and in any event within 180 days after the close
of each of its financial years) copies of the Financial Statement and the accounts of such of its Subsidiary Undertakings as the Bank may from time to time require for that financial year; and 
  

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 (b) promptly on request, such other information regarding the financial condition or the business of the
Borrower or any of its Subsidiary Undertakings as the Bank may reasonably require; and 
  
 6.3 shall ensure that it and each of its Subsidiary Undertakings maintains with reputable underwriters or insurance companies adequate insurance on and over its respective business and assets, such insurance to be
against such risks and to the extent usual for persons carrying on a business such as that carried on by the Borrower or, as the case may be by the relevant Subsidiary Undertaking and from time to time upon the request of the Bank, shall furnish the
Bank with evidence of compliance with this obligation; and 
  
 6.4
shall immediately upon becoming aware of the same give the Bank written notice of the occurrence of any Event of Default. 
  

	 	7.	 	Events of Default 

  
 7.1 In the event that: 
  
 (a) the Borrower fails to pay any sum due hereunder on its due date and such amount remains unpaid for a period of 30 days or more; 
  
 (b) the Borrower defaults in the due performance or observance of any
obligation accepted or undertaking given by it to the Bank or any representation warranty or statement made or deemed made by the Borrower herein or pursuant hereto proves to be incorrect or misleading; 
  
 (c) any other indebtedness of the Borrower (including without limitation any
indebtedness under the Banking Facilities Letter, or any successor letter) becomes due or capable of being declared due prior to the stated due date for payment thereof or the Borrower defaults in the payment when due of any such indebtedness or
defaults in paying on the due date any sum payable by it under any guarantee, indemnity or similar undertaking given by it or steps are taken to enforce any security for any liability of the Borrower present or future; 
  
 (d) an encumbrancer takes possession or a receiver, administrator or similar
official is appointed of any of the assets or undertaking of the Borrower or an administration application is presented or made for the making of an administration order or a notice of intention to appoint an administrator under Schedule B1 to the
Insolvency Act 1986 is issued by the Borrower or its directors or by the holder of a qualifying floating charge (as defined in such Schedule) or a notice of appointment of an administrator is filed by any person with the court or any judgment made
against the Borrower is not paid out, stayed or discharged within 14 days; 
  

 8 

 (e) proceedings are commenced or a petition is presented (and is not dismissed within 14 days) or an
order is made or an effective resolution is passed for the winding up of the Borrower or the Borrower is or becomes insolvent or stops or threatens to stop payment of its debts generally or is deemed unable to pay such debts (whether within the
meaning of Section 123 of the Insolvency Act 1986 or otherwise) or the directors of the Borrower become obliged to convene a meeting pursuant to Section 142 of the Companies Act 1985 or an application is made in connection with a moratorium or a
proposal to creditors for a voluntary arrangement is made by the Borrower or the Borrower takes any action (including entering negotiations) with a view to readjustment, rescheduling, forgiveness or deferral of any part of the Borrower’s
indebtedness; 
  
 (f) any guarantee, other security (including
without limitation the Security) or other document or arrangement relied upon by the Bank in connection with the Facility ceases to be continuing or ceases to remain in full force and effect or notice of discontinuance is received by the Bank or the
Bank reasonably believes that the effectiveness of any such document or arrangement is in doubt or if any provision of such document or arrangement is not complied with for any reason whatsoever; 
  
 (g) the Borrower ceases or threatens to cease to carry on its business in the
normal course or fails to maintain or breaches any franchise, licence or right necessary to conduct its business or breaches any legislation relating to its business, including without limitation any applicable environmental protection laws;

  
 (h) unless with the prior written consent of the Bank, which
consent shall not be unreasonably withheld, the persons who now have control of the Borrower cease to have control of the Borrower (“control” having the meaning ascribed to it in Section 840 of the Income and Corporation Taxes Act
1988) or voting control of the Borrower is acquired by any person, or company or group of connected persons (as defined in Section 839 of the Income and Corporation Taxes Act 1988) not having control of the Borrower at the date hereof; 

 
 (i) any of the above events occur in relation to any Subsidiary
Undertaking of the Borrower or any guarantor of the Facility or any action is taken in any jurisdiction which is similar or analogous to any of the foregoing either in relation to the Borrower or any of the above mentioned parties; or 
  
 (j) the Borrower fails or has failed to disclose to the Bank any important
information that is relevant to the Facility or to any security document or undertakes or is subject to any action or occurrence which in the opinion of the Bank causes the payment of any amount owing hereunder to be at risk, 
  
 then the Bank shall have the right at any time or times thereafter to declare its commitments
hereunder cancelled and/or all amounts then outstanding hereunder payable on demand, whereupon such commitments shall be so cancelled and/or such outstandings 

  

 9 

 
shall be so payable, and/or to declare the Facility immediately due and payable, whereupon the Borrower shall pay to the Bank the total principal amount
outstanding hereunder together with accrued interest thereon and any other amounts payable hereunder. 
  
 7.2 The Bank shall have the right at the time of making such demand or at any time thereafter to convert all amounts then due and payable hereunder in
Dollars into Sterling at the Bank’s spot selling rate for such currency against Sterling at that time. 
  
 7.3 If any amount is not paid when due hereunder (including under this clause) the Borrower shall pay to the Bank on demand interest on such sum (whether
before or after judgment) at 3.75% per annum above the cost to the Bank as certified by the Bank of funding such sum on the London interbank market for such period or consecutive periods as the Bank in its sole discretion may select, running from
the date of such default to the date of receipt of such sum in full by the Bank. Interest, if unpaid, shall be added to the sum in default on the last day of each such period or at 3 monthly intervals whichever is more frequent. 
  

	 	8.	 	Indemnities 

  
 8.1 The Borrower shall indemnify the Bank, without prejudice to any of the Bank’s other rights hereunder, against any loss or expense as certified by
the Bank including legal expenses on a full indemnity basis and loss arising from the funding by the Bank of the Facility which the Bank may incur or sustain as a consequence of the occurrence of any Event of Default or any failure by the Borrower
to pay any sum demanded by the Bank as a result thereof, the amendment or withdrawal of any notice or instruction given by the Borrower under or in connection with this letter, any repayment of any drawing or part thereof being made otherwise than
on the last day of its Interest Period, or any amount payable to the Balk hereunder in one currency being converted into another currency, whether pursuant to any judgment or order or otherwise. 
  
 8.2 Costs or losses incurred by the Bank as a result of any such amendment,
withdrawal or repayment as is referred to in Clause 8.1 hereof will include, but will not be limited to, any loss or expense sustained or incurred by the Bank in repaying or re-employing deposits acquired by the Bank at a fixed rate of interest in
order to make or maintain the Facility or any part thereof and any loss or expense sustained or incurred by the Bank in respect of any agreement it has entered into to compensate for the potential cost to the Bank of on-lending at a fixed rate of
interest deposits acquired by the Bank at a variable rate of interest in order to make or maintain the Facility or any part thereof, including any loss or expense sustained or incurred by the Bank in fulfilling or terminating any obligation it may
have under any such agreement and in entering into and fulfilling any obligation it may have under any other agreement it may enter into to offset the cost of continuing such first agreement. 
  

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	 	9.	Notices 

  
 9.1 All communications from the Borrower in respect of the Facility: 
  
 (a) shall be irrevocable and shall, unless otherwise specified in this letter, be sent to the Bank at Loans Administration
Department, Bank House, Wine Street, Bristol BS1 2AN or to such other address as the Bank may notify in writing to the Borrower from time to time; and 
  
 (b) unless required by the terms of this letter to be a written notice (in which case the communication must be given by letter), may be given to the Bank
over the telephone or by facsimile transmission. All such communications shall be confirmed by letter within 3 Business Days but, whether or not any such confirmation is received, any such communication received by the Bank purporting to be given by
an authorised officer of the Borrower and believed by the Bank to be genuine shall have the same validity as a written notice duly signed by an authorised signatory. 
  
 9.2 Any notice or demand to be given by the Bank shall be given in writing and without prejudice to any other effective mode
of service shall be deemed to have been sufficiently served if sent to the Borrower at the address given above or to its registered office for the time being. 
  

	 	10.	Payments 

  
 10.1 All payments. due from the Borrower hereunder shall be made without any set-off, deduction or withholding of any nature whatsoever. 
  
 10.2 Each sum due from the Borrower hereunder shall be paid in freely
transferable and immediately available same day funds to such bank account in New York as the Bank shall from time to time require by such hour local time as may be necessary to ensure payment for value the due date save that, if such payment is due
in Sterling it shall be debited to the current account of the Borrower with the Bank’s Sidney Street, Cambridge Branch. 
  

	 	11.	Miscellaneous 

  
 11.1 No delay or omission by the Bank in exercising any of its rights hereunder shall operate or be construed as a waiver thereof, nor shall any single or
partial exercise of any such right prevent any other or further exercise thereof or the exercise of any other right. 
  
 11.2 Without prejudice to the Bank’s rights under any set off arrangements the Bank may at any time whether before or after any demand hereunder for
payment without notice to the Borrower apply any moneys standing to the credit of the Borrower on any 

  

 11 

 
account other than the IP Accounts and whether subject to notice or not and whether denominated in Dollars or in any other currency in or towards
satisfaction of any liabilities of the Borrower under this letter. 
  
 11.3 If the due date for any payment or the last day of any Interest Period would otherwise fall on a non-Business Day, the effective date shall be the next succeeding Business Day. 
  
 11.4 This letter shall be binding upon and shall inure only to the benefit of
the Bank and the Borrower and their respective successors and assigns, provided that the Borrower shall not assign any of its rights or transfer any of its obligations hereunder without the prior written consent of the Bank. For the avoidance of
doubt, the Bank and the Borrower do not intend that any of the terms of this letter should otherwise be enforceable, by virtue of the Contracts (Rights of Third Parties) Act 1999, by any person who is not a party to this letter. 
  
 11.5 Members of the Lloyds TSB group may transfer any information regarding
the Borrower among themselves, to their auditors for the time being and to any potential assignee or transferee of the facility (or any part thereof). Information may not be transferred further or otherwise (including for marketing purposes) without
the prior written consent of the Borrower unless such information is in public domain or unless the Bank is required by law so to do. 
  
 11.6 All calculations in respect of interest due to the Bank under the Facility shall be on the basis of the actual number of days elapsed and a 360 day
year. 
  
 11.7 In this letter reference to (a) any statutory
provision shall be deemed to mean and to include a reference to any modification or re-enactment thereof for the time being in force, (b) the London interbank offered rate shall mean and include any rate replacing that rate from time to time, and
(c) the Bank of England or the Financial Services Authority shall include any successor to that institution or authority. 
  
 11.8 An amendment which extends, modifies or changes (i) the principal amount available under the facility, (ii) the time for payment or maturity (other
than pursuant to Clause 2.5 hereof) of the Facility, or (iii) the interest margin, interest basis, costs or fees payable in respect of the Facility shall require the prior written consent of IPIFS Guarantee Corp. 
  
 11.9 This letter shall be governed by and construed in accordance with the
laws of England and Wales. 
  

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	 	12.	Period of Offer 

  
 12.1 The offer of the Facility is open for acceptance by returning the attached duplicate of this letter with the acknowledgement duly signed by
authorised officers of the Borrower to be received by Lloyds TBS Corporate, Cambridge not later than one month hence failing which the offer will lapse. 
  

	
	 Yours faithfully,
 For and on behalf of Lloyds TSB Bank plc

	
	 /s/ C. D. Martin

	 C.D. Martin
 Senior Manager

  

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 This letter creates legal obligations. 
 Before signing you may wish to take independent advice. 
  
 We hereby acknowledge and accept the terms of your offer dated 29th June 2004 of which this is a duplicate and agree all the terms and conditions therein contained. We also acknowledge that your offer contains all the
terms currently applicable to the Facility and that no representation, warranty or undertaking has been made by you or on your behalf in connection with the Facility which is not expressly set out in your offer and, in deciding to accept your offer,
you have no duty to give us advice and we have not relied on any advice given by you or on your behalf, 
  
 Signed for and on behalf of Cambridge Display Technology Limited 
  

									
					
	 /s/ Stephen Chandler
	 	 (signature)
	 	 	 	 /s/ Jeremy Burroughes
	 	 (signature)

	 *Director
	 	 	 	 	 	 *Director
	 	 
					
	 Stephen Chandler
	 	 (name)
	 	 	 	 Jeremy Burroughes
	 	 (name)

  
 Pursuant to a Resolution of the Board
dated 1 July 2004 
  
 Date 1 July 2004 
  

 14Reimbursement Agreement, dated July 1, 2004

 Exhibit 10.9 
  
 REIMBURSEMENT AGREEMENT 
  
 REIMBURSEMENT AGREEMENT (this “Reimbursement Agreement”) is dated as of July 1, 2004 (the “Closing Date”),
between CAMBRIDGE DISPLAY TECHNOLOGY LIMITED, a United Kingdom corporation (the “Company”) and IPIFS GUARANTEE CORP., a Delaware corporation (“IPIFS”). 
  
 RECITALS: 
  
 1. Lloyds TSB Bank plc (the “Lender”) and the Company are entering into the US$15,000,000 Revolving
Loan Facility Agreement (the “Credit Agreement”) dated on or about of July 1, 2004, pursuant to which the Lender is agreeing to provide a $15,000,000 line of credit for a term of up to 36-months to the Company. (The loans made by
the Lender to the Company, from time to time, under such line of credit are referred to collectively as the “Loans”). 
  
 2. In order to induce the Lender to enter into the Credit Agreement, and to satisfy one of the conditions to the obligation of the Lender to make
the Loans, the Company has requested IPIFS to enter into the Letter of Understanding dated on or about July 1, 2004, between the Lender and IPIFS (such agreement, as amended, modified, restated or supplemented from time to time, being referred to as
the “Letter of Understanding”). 
  
 3. In connection with the Letter of Understanding, IPIFS has requested that Wells Fargo Bank, N.A. (the “Issuer”) issue a letter of credit in the original face amount of $15,000,000, Letter of Credit No. NZS52614 (as
amended, modified, restated or supplemented from time to time, the “Letter of Credit”), for the benefit of the Lender, as credit support for the Loans. 
  
 4. The Letter of Credit is being issued pursuant to the Standby Letter of Credit Agreement dated as of December 19,
2003, between the Issuer and Principal Financial Services, Inc. (“PFS”) (such Standby Letter of Credit Agreement, as amended, modified or restated from time, being referred to as the “Issuer Reimbursement
Agreement”). Pursuant to the Issuer Reimbursement Agreement, PFS shall be obligated to make certain payments to the Issuer, including without limitation reimbursement for any drawings under the Letter of Credit. In connection with the
issuance of the Letter of Credit, PFS and IPIFS are entering into the Letter of Credit Reimbursement Agreement dated as of June 30, 2004 (such agreement, as amended, modified or restated from time, the “Letter of Credit Reimbursement
Agreement”), pursuant to which IPIFS shall be obligated to make certain payments to PFS, including without limitation reimbursement for payments under the Issuer Reimbursement Agreement.  
  
 5. As a condition to its willingness to enter into the Letter of
Understanding and the Letter of Credit Reimbursement Agreement and to obtain the Letter of Credit, IPIFS has required that the Company enter into this Reimbursement Agreement, providing (among other things) for the reimbursement by the Company of
specified amounts that IPIFS may pay pursuant to the Letter of Understanding or any Letter of Credit Reimbursement Agreement, all on the terms and conditions set forth herein. 

 6. The Company is willing to enter into this Reimbursement Agreement. 
  
 NOW, THEREFORE, in consideration of the premises and other good and
valuable consideration, and in order to induce IPIFS to enter into the Letter of Understanding, the parties hereto agree as follows: 
  
 ARTICLE I 
  
 DEFINITIONS 
  
 Section 1.01. Certain Defined Terms. As used in this Reimbursement Agreement, the following terms shall have the following meanings (such meanings to be equally applicable to both the singular and plural forms of the terms defined):

  
 “Base Rate” means a fluctuating rate of
interest per annum equal to the Prime Rate. Each change in the Base Rate shall take effect simultaneously with the corresponding change or changes in the Prime Rate. 
  
 “Business Day” means a day of the year on which national banks are not required or authorized to close in
Charlotte, North Carolina or New York, New York. 
  
 “CDTAC” means CDT Acquisition Corp, a Delaware corporation. 
  
 “Chief Financial Officer” means the Chief Financial Officer of the Company or, if the Company has no such officer, any other officer of the Company performing substantially the same function as the
Chief Financial Officer. 
  
 “Closing Date” has
the meaning assigned to that term on the first page of this Reimbursement Agreement. 
  
 “Collateral” has the meaning assigned to that term in the Security Agreement. 
  
 “Company” has the meaning assigned to that term on the first page of this Reimbursement Agreement. 
  
 “Company’s Obligations” means, collectively, the
obligations of the Company under this Reimbursement Agreement, including without limitation the obligation of the Company to make any reimbursement payment or interest payment to IPIFS when due. 
  
 “Consolidated” refers to the consolidation of accounts of
CDTAC and its Subsidiaries in accordance with GAAP. 
  

 2 

 “Consolidated Current Assets” means the current assets of CDTAC and its Subsidiaries,
determined on a consolidated basis in accordance with GAAP. 
  
 “Consolidated Current Liabilities” means the current liabilities of CDTAC and its Subsidiaries, minus liabilities relating to deferred revenue, determined on a consolidated basis in accordance with GAAP. 
  
 “Consolidated Debt” means (i) all indebtedness for borrowed
money or the deferred purchase price of property or services, including, without limitation, reimbursement and other obligations with respect to surety bonds and letters of credit, (ii) all obligations evidenced by notes, bonds, debentures or
similar instruments, (iii) all capital lease obligations and (iv) all Contingent Obligations, in each case of CDTAC and its Subsidiaries, determined on a consolidated basis. 
  
 “Consolidated Total Assets” means at any date as of which the amount thereof shall be determined, all
assets that should, in accordance with GAAP be classified as assets on the consolidated balance sheet of CDTAC and its Subsidiaries. 
  
 “Consolidated Total Liabilities” means at any date as of which the amount thereof shall be determined, all obligations that should, in
accordance with GAAP be classified as liabilities on the consolidated balance sheet of CDTAC and its Subsidiaries, including in any event all Consolidated Debt, but specifically excluding (a) Subordinated Debt and (b) to the extent classified under
GAAP as a liability on such balance sheet, (i) any amounts owing in respect of any class of preferred stock of CDTAC or any of its Subsidiaries or (ii) any liability relating to any obligation to issue stock. 
  
 “Consolidated Total Net Worth” means as at any date as of
which the amount thereof shall be determined, (a) Consolidated Total Assets minus (b) Consolidated Total Liabilities. 
  
 “Contingent Obligations” means, as applied to any Person, any direct or indirect liability, contingent or otherwise, of that Person with
respect to (i) any indebtedness, lease, dividend, letter of credit or other obligation of another, including, without limitation, any such obligation directly or indirectly guaranteed, endorsed, co-made or discounted or sold with recourse by that
Person, or in respect of which that Person is otherwise directly or indirectly liable; (ii) any obligations with respect to undrawn letters of credit issued for the account of that Person; and (iii) all obligations arising under any interest rate,
currency or commodity swap agreement, interest rate cap agreement, interest rate collar agreement, or other agreement or arrangement designated to protect a Person against fluctuation in interest rates, currency exchange rates or commodity prices;
provided that the term “Contingent Obligations” shall not include endorsements for collection or deposit in the ordinary course of business. The amount of any Contingent Obligation shall be deemed to be an amount equal to the stated
or determined amount of the primary obligation in respect of which such Contingent Obligation is made or, if not stated or determinable, the maximum reasonably anticipated liability in respect thereof as determined by such Person in good faith;
provided, however, that such amount shall not in any event exceed the maximum amount of the obligations under the guarantee or other support arrangement. 
  

 3 

 “Credit Agreement” has the meaning assigned to that term in paragraph 1 of the
Recitals hereof. 
  
 “Default” means (a) any
Event of Default or (b) any event that would constitute an Event of Default but for the requirement that notice be given or time elapse or both. 
  
 “Default Rate” means a fluctuating interest rate equal to four percent (4%) per annum above the Base Rate in effect from time to time.

  
 “Event of Default” has the meaning assigned
to that term in Section 4.01 of this Reimbursement Agreement. 
  
 “Fee Disbursement Schedule” means that certain Fee Disbursement Schedule agreement dated as of June 30, 2004 among the Company, IP Innovations Financial Services, Inc. and IPIFS, as amended, modified or restated from time
to time. 
  
 “Generally Accepted Accounting
Principles” or “GAAP” means those principles of accounting set forth in statements of the Financial Accounting Standards Board or which have other substantial authoritative support and are applicable in the circumstances as
of the date of a report, as such principles are from time to time supplemented and amended.  
  
 “IPIFS” has the meaning assigned to that term on the first page of this Reimbursement Agreement. 
  
 “IPIFS’ Liabilities” means, collectively, IPIFS’
obligations (including, without limitation payments or option payments) under or pursuant to the Letter of Understanding, any Letter of Credit Reimbursement Agreement or any other Related Document. 
  
 “IPIFS Payment” means any payment by IPIFS to the Lender,
the Issuer (or any replacement thereof), or PFS, or any of their respective successors or assigns, pursuant to the Letter of Understanding, any Letter of Credit Reimbursement Agreement or any other Related Document or with respect to any IPIFS’
Liability. 
  
 “Issuer” has the meaning assigned
to that term in paragraph 3 of the Recitals hereof 
  
 “Indebtedness” means all items which would, in conformity with Generally Accepted Accounting Principles, be classified as liabilities on a balance sheet of the Company or any of its Subsidiaries as of the date such
determination of indebtedness is made and in any event including (without duplication): (a) all indebtedness of the Company or any of its Subsidiaries for money borrowed; (b) all liabilities guaranteed or assumed, directly or indirectly, by the
Company or any of its Subsidiaries in any manner, or endorsed (otherwise than for collection or deposit in the ordinary course of business) or discounted thereby with recourse; (c) the face amount of all letters of credit issued for the account of a
Company or any of its Subsidiaries and, without duplication, all drafts drawn thereunder; (d) all indebtedness in effect guaranteed by a Company or any of its Subsidiaries, directly or indirectly, whether through an agreement, 
  

 4 

 contingent or otherwise, to purchase or repurchase such indebtedness or to purchase, sell or lease (as lessee or lessor)
any property or services primarily for the purpose of enabling the debtor to make payment of such indebtedness or to assure the owner of the indebtedness against loss, or to advance or supply funds to or to invest in any other manner in the debtor,
whether through purchasing stock, making a loan, advance or capital contribution or by means of agreeing to maintain or cause such debtor to maintain a minimum working capital or net worth, or otherwise (but excluding endorsements for collection or
deposit in the ordinary course of business); (e) all liabilities secured by any lien on any property owned by the Company or any of its Subsidiaries, to the extent attributable to such Person’s interest in such property, even though the Company
or such Subsidiary has not assumed or become liable for the payment thereof; and (f) obligations of the Company or any of its Subsidiaries under capital leases. 
  
 “Issuer” has the meaning assigned to that term in paragraph 3 of the Recitals hereof. 
  
 “Issuer Reimbursement Agreement” has the meaning assigned to
that term in paragraph 4 of the Recitals hereof. 
  
 “Letter of Credit” has the meaning assigned to that term in paragraph 3 of the Recitals hereof. 
  
 “Letter of Credit Reimbursement Agreement” has the meaning assigned to that term in paragraph 4 of the Recitals hereof.

  
 “Letter of Understanding” has the meaning
assigned to that term in paragraph 2 of the Recitals hereof. 
  
 “Payment Address” means the office of IPIFS located at 2221 Edge Lake Drive, Suite 100, Charlotte, North Carolina 28217, or such other address as IPIFS may specify from time to time by notice to the Company. 
  
 “Person” means any individual, joint venture, corporation,
company, voluntary association, partnership, limited liability company, trust, joint stock company, unincorporated organization, association, government, or any agency, instrumentality, or political subdivision thereof, or any other form of entity.

  
 “PFS” has the meaning assigned to that term
in paragraph 4 of the Recitals hereof. 
  
 “Prime
Rate” means the rate per annum listed in the “Money Rates” section of the Wall Street Journal as the “Prime Rate.” 
  
 “Reimbursement Agreement” means this Reimbursement Agreement and any amendments or supplements thereto. 
  
 “Reimbursement Amount” means amounts paid by IPIFS to the
Lender, the Issuer (or any replacement thereof) or PFS, or any of their respective successors or assigns, pursuant to the Letter of Understanding, any Letter of Credit Reimbursement Agreement or any other Related 
  

 5 

 Document or with respect to any of IPIFS’ Liabilities, in each case, to the extent resulting from (i) a request for
payment from IPIFS by the Lender, or (ii) a draw upon the Letter of Credit (or any replacement letter of credit) made by the Lender; provided, however, in no event shall the Reimbursement Amount include the Fee (as defined in Section 2 of the Letter
of Credit Reimbursement Agreement). 
  
 “Related
Documents” means, collectively, this Reimbursement Agreement, the Credit Agreement, the Letter of Understanding, the Letter of Credit, the Letter of Credit Reimbursement Agreements, the Security Agreement and any other agreement, instrument
or document entered into, issued or delivered in connection with any of the foregoing agreements. 
  
 “Responsible Officer” means the Chief Executive Officer, Chief Operation Officer, Chief Financial Officer, President, Treasurer,
Executive Vice President, General Counsel or any member of the Board of Directors of the Company or any person performing similar functions as, and having similar responsibility of, any of the above. 
  
 “Security Agreement” means that certain Security Agreement
dated as of June 30, 2004, by the Company and CDT Oxford Limited in favor of IPIFS, as such agreement may be amended, modified, restated or supplemented from time to time. 
  
 “Subordinated Debt” means any Consolidated Debt incurred by the Company that is subordinated to the
Indebtedness owing by the Company to the Lender on the Loans. 
  
 “Subsidiary” of any Person means an entity in which more than 50% of the profits, equity or voting control of such entity is owned by such Person, by such Person and any one or more Subsidiaries of such Person, or by any
one or more Subsidiaries of such Person. 
  
 “Termination
Event” means the occurrence of all of the following: (a) the termination, without renewal, of the commitment of the Lender to extend credit under the Credit Agreement, (b) the repayment of the Loans and all other amounts outstanding under
or pursuant to the Credit Agreement, and (c) no Secured Obligations remain outstanding. 
  
 “Working Capital” means Consolidated Current Assets minus Consolidated Current Liabilities. 
  
 Section 1.02. Computation of Time Periods. In this Reimbursement Agreement, in the computation of a period of time from a specified date to a later
specified date, the word “from” means “from and including” and the words “to” and “until” each mean “to but excluding.” 
  
 Section 1.03. Accounting Terms. All accounting terms not specifically defined herein shall be construed in accordance
with Generally Accepted Accounting Principles consistently applied, except as otherwise stated herein. 
  
 Section 1.04. Other Terms. All other capitalized terms to the extent not otherwise defined shall have the meanings given to them in the Credit
Agreement. 
  

 6 

 Section 1.05. Currency. All monetary amounts are in United States Dollars, unless otherwise
indicated. 
  
 ARTICLE II 
  
 REIMBURSEMENT OBLIGATIONS 
  
 Section 2.01. Reimbursement. The Company hereby unconditionally,
absolutely, continually and irrevocably agrees to immediately reimburse IPIFS from time to time upon demand for any and all Reimbursement Amounts. Nothing in this Reimbursement Agreement shall be deemed to waive any rights of exoneration and/or
reimbursement against the Company that IPIFS may have at law or equity. 
  
 The Company’s Obligations are secured by the Security Agreement. 
  
 Section 2.02. Payment of Reimbursement Obligations. Intentionally Left Blank. 
  
 Section 2.03. Interest; Default Rate. In the event that any reimbursement payment or any other Company’s
Obligation due hereunder is not paid when due (whether upon demand, by acceleration or otherwise), such amount shall continue as an obligation of the Company hereunder and shall bear interest from the due date thereof until paid in full at the
Default Rate. Accrued interest shall be payable (i) monthly on the last Business Day of each month, (ii) at any time upon demand therefor by IPIFS, and (iii) at the time of any payment of any Company’s Obligation hereunder. The failure of the
Company to make any payment (including, without limitation, any payment of any Company’s Obligation or any interest thereon) when due shall constitute an Event of Default hereunder. 
  
 Section 2.04. Absolute Rights and Obligations. The Company’s Obligations under this Reimbursement Agreement
shall be absolute and unconditional irrespective of, and the Company hereby expressly waives, to the extent permitted by law, any defense to its obligations under this Reimbursement Agreement and the Security Agreement to which it is a party, by
reason of: 
  
 (a) any lack of legality, validity
or enforceability of the Credit Agreement, the Letter of Understanding, the Letter of Credit, any Letter of Credit Reimbursement Agreement or any other Related Document, or of any other agreement or instrument creating, providing security for, or
otherwise relating to any of the Company’s Obligations or any of IPIFS’ Liabilities; 
  
 (b) any action taken under any of the Related Documents, any exercise of any right or power therein conferred, any failure or omission to
enforce any right conferred thereby, or any waiver of any covenant or condition therein provided; 
  
 (c) any acceleration of the maturity of any of IPIFS’ Liabilities, of any of the Company’s Obligations, or of any other
obligations or liabilities of any Person under any of the Related Documents; 
  

 7 

 (d) any release, exchange, non-perfection, lapse in perfection, disposal, deterioration
in value, or impairment of any security for any of IPIFS’ Liabilities, for any of the Company’s Obligations, or for any other obligations or liabilities of any Person under any of the Related Documents; 
  
 (e) any dissolution of any party to a Related Document, or
the combination or consolidation of any party to a Related Document into or with another entity or any transfer or disposition of any assets of any other party to a Related Document; 
  
 (f) any extension (including, without limitation, extensions of time for payment), renewal, amendment,
restructuring or restatement of, any acceptance of late or partial payments under, or any change in the amount of any credit facilities available under, the Letter of Credit, the Credit Agreement, or any other Related Document, in whole or in part;

  
 (g) the existence, addition, modification,
termination, reduction or impairment of value, or release of any other guaranty (or security therefor) of the Company’s Obligations or IPIFS’ Liabilities; 
  
 (h) any waiver of, forbearance or indulgence under, or other consent to any change in or departure from any
term or provision contained in the Credit Agreement, the Letter of Understanding, the Letter of Credit, any Letter of Credit Reimbursement Agreement, or any other Related Document, including without limitation any term pertaining to the payment or
performance of any of IPIFS’ Liabilities, or any of the obligations or liabilities of any party to any Related Agreement; and 
  
 (i) any other circumstance whatsoever (with or without notice to or knowledge of the Company) which may or might in any manner or to any
extent vary the risks of the Company, or might otherwise constitute a legal or equitable defense available to, or discharge of, a surety or a IPIFS, including without limitation any right to require or claim that resort be had to any other Person or
to any collateral in respect of the Company’s Obligations or IPIFS’ Liabilities, whether arising under North Carolina General Statutes Sections 26-7 and 26-9 or otherwise. 
  
 It is the express purpose and intent of the parties hereto that this Reimbursement Agreement and the Company’s Obligations hereunder
shall be absolute and unconditional under any and all circumstances and shall not be discharged except by payment as herein provided. 
  
 Section 2.05. Currency, Funds and Manner of Payment. All Company’s Obligations and all interest thereon will be paid in lawful currency of the
United States of America and in immediately available funds, regardless of any law, regulation or decree now or hereafter in effect that might in any manner affect IPIFS’ Liabilities, or the rights of any Person with respect thereto as against
IPIFS, or cause or permit to be invoked any alteration in the time, amount or manner of payment by IPIFS of any or all of IPIFS’ Liabilities. All payments shall be to IPIFS at the Payment Address, before 2:00 p.m., Charlotte, North Carolina
time, on the date such payment is due. Any such payment shall not be deemed to be received by IPIFS until the time such funds become available funds. 
  

 8 

 Section 2.06. Application of Funds. Without limiting the generality of Section 1.9 of the
Security Agreement and subject to Section 6.4 of the Security Agreement, all payments or funds (including without limitation proceeds of Collateral) received by IPIFS with respect to any Company’s Obligations may be applied by IPIFS to
any of the Company’s Obligations in such order as IPIFS may determine in its sole discretion. 
  
 Section 2.07. Events of Default. Without limiting the provisions of Article II hereof, in the event that there shall occur and be
continuing an Event of Default, then notwithstanding any collateral or other security or credit support for IPIFS’ Liabilities or the Company’s Obligations, at IPIFS’ election and without notice thereof or demand therefor, the
Company’s Obligations shall immediately be and become due and payable. 
  
 Section 2.08. Suits. The Company from time to time shall pay to IPIFS, on demand, at the Payment Address, the Company’s Obligations as they become or are declared due, and in the event such payment is not
made forthwith, IPIFS may proceed to suit against the Company. At IPIFS’ election, one or more and successive or concurrent suits may be brought hereon by IPIFS against the Company, whether or not suit has been commenced against any other
Person and whether or not IPIFS has taken or failed to take any actions against any Collateral or any other collateral securing payment or performance of all or any portion of the Company’s Obligations, and irrespective of any event,
occurrence, or condition described in Section 2.04 hereof. 
  
 Section 2.09. Waiver of Setoff. The Company waives any right to assert against IPIFS as a defense, counterclaim, set-off, recoupment or cross claim in respect of its Company’s Obligations, any defense (legal or equitable)
or other claim which the Company may now or at any time hereafter have against IPIFS, the Lender, the Issuer or any other party to any Related Document.. 
  
 ARTICLE III 
  
 REPRESENTATIONS AND WARRANTIES; COVENANTS. 
  
 Section 3.01. Representations and Warranties of the Company under the Related Documents. The Company hereby represents and warrants to IPIFS that
each of the representations and warranties of the Company set forth in Section 5 (other than Section 5.1(b) of the Credit Agreement) or any other provision of the Credit Agreement or in any provision of any other Related Document is true and
correct in all respects as of the date hereof. 
  
 Section
3.02. Covenants of the Company under the Related Documents. The Company agrees to perform each of its covenants (including without limitation any financial covenant, affirmative covenant or negative covenant) set forth in the Credit
Agreement or any other Related Document in accordance with its terms. Each such covenant is hereby incorporated by reference into this Reimbursement Agreement as if set forth fully herein. 
  

 9 

 Section 3.03. Financial Covenants. So long as no Termination Event shall have occurred, the
Company shall maintain at all times: 
  
 (a)
Consolidated Total Net Worth. A Consolidated Total Net Worth of at least $75 million. 
  
 (b) Minimum Working Capital. Working Capital of not less than negative $15,000,000. 
  
 Section 3.04. Reporting Requirements. So long as any Loan remains
unpaid or is outstanding, the Company shall, unless IPIFS shall otherwise consent in writing, furnish to IPIFS: 
  
 (a) Default Notice. As soon as possible and in any event within three (3) Business Days after a Responsible Officer becomes aware
of the occurrence of each Default continuing on the date of such statement, a statement of the Chief Financial Officer or other Responsible Officer of the Company setting forth details of such Default and the action that the Company has taken and
proposes to take with respect thereto. 
  
 (b)
Quarterly Financials. As soon as available and in any event within 45 days after the end of each of the first three quarters of each fiscal year of CDTAC, a Consolidated balance sheet of CDTAC and its Subsidiaries as of the end of such
quarter and Consolidated statements of income and cash flows of CDTAC and its Subsidiaries for the period commencing at the end of the previous fiscal year and ending with the end of such quarter, setting forth in each case in comparative form the
corresponding figures for the corresponding period of the preceding fiscal year, all in reasonable detail and duly certified (subject to year-end audit adjustments) by the Chief Financial Officer of the Company as having been prepared in accordance
with GAAP, together with an executed Compliance Certificate signed by said officer in the form attached hereto as Exhibit A. If a Default has occurred and is continuing, said officer shall also provide a statement as to the nature of the Default and
the action that the Company has taken and proposes to take with respect thereto. 
  
 (c) Annual Financials. As soon as available and in any event within 135 days after the end of each fiscal year of CDTAC, a copy of
the annual audit report for such year for CDTAC and its Subsidiaries, including therein a Consolidated balance sheet of CDTAC and its Subsidiaries as of the end of such fiscal year and Consolidated statements of income and cash flows of CDTAC and
its Subsidiaries for such fiscal year, in each case accompanied by an opinion of an independent certified public accountant of recognized standing, which opinion shall be prepared in accordance with generally accepted auditing standards and shall
not be subject to any “going concern” or like qualification or exception or any qualification or exception as to the scope of such audit, together with an executed Compliance Certificate signed by the Chief Financial Officer of the Company
in the form attached hereto as Exhibit A, and, if a Default has occurred and is continuing, the Compliance Certificate shall be accompanied with a statement as to the nature of the Default and the action that the Company has taken and proposes to
take with respect thereto. 
  

 10 

 (d) Other Information. Such other information respecting the business, condition
(financial or otherwise), operations, performance, properties (intellectual property or otherwise) or prospects of the Company or any of its Subsidiaries as IPIFS may from time to time reasonably request. 
  
 Section 3.05. Segregated Bank Account. The Company shall create
and maintain one or more separate, segregated deposit accounts at Lender (or Fleet Bank in New York, New York) into which all Proceeds (as defined in the Security Agreement) of the Collateral, including, without limitation, up-front licensing fees
and royalties, shall be deposited (collectively, the “IP Account”). Moneys in the IP Account shall be segregated from other moneys belonging to Company, and only Proceeds of the Collateral may be deposited into the IP Account. Each
deposit must be held in the IP Account for at least five (5) business days (each such five day period, a “Hold Period”). Upon expiration of the applicable Hold Period, if no Default or Event of Default has occurred and is continuing, the
Company may use such funds as it desires in the ordinary course of Company’s business. If a Default or Event of Default has occurred and is continuing, the Company shall not withdraw any moneys from the IP Account without the prior written
consent of IPIFS, such consent to be evidenced solely by the signature of the President of IPIFS on any withdraw or transfer request submitted to Lender. At or prior to closing, Company shall provide IPIFS and Lender an IP Account Certification
signed by the chief financial officer of the Company regarding the formation, operation and use of the IP Account in the form attached hereto as Exhibit B. 
  
 Section 3.06 Amendments to Related Documents. The Company shall not amend or agree to amend any of the terms
of the Credit Agreement or any other Related Document without the prior written consent of IPIFS to (a) extend, modify or change (i) the principal amount of the loan outstanding under the Credit Agreement, (ii) the time for payment or maturity date
of the such loan, (iii) the interest rate, costs or fees on such loan, or (b) materially modify or change any representations, warranties, covenants or related definitions. 
  
 Section 3.07. Burdensome Agreements. So long as no Termination Event shall have occurred, the Company shall
not enter into any contractual obligation (other than the Credit Agreement, the Letter of Understanding or any Related Document) that (a) limits the ability (i) of any Subsidiary of the Company to make distributions or pay dividends to the Company
or to otherwise transfer property to the Company, or (ii) of the Company or any such Subsidiary to create, incur, assume or suffer to exist security interests or liens on property of such Person; provided, however, that this clause
(ii) shall not prohibit any negative pledge incurred or provided in favor of any holder of purchase money indebtedness or any lessor pursuant to any capital lease, in each case, solely to the extent any such negative pledge relates to the property
financed by or the subject of such indebtedness; or (b) requires the grant of a security interest or lien to secure an obligation of such Person if a security interest or lien is granted to secure another obligation of such Person.

  

 11 

 Section 3.08. IPIFS’s Obligation To Procure Letter of Credit. IPIFS shall make
available on or before the Closing Date, for the benefit of the Lender, the Letter of Credit for a period of one (1) year. IPI will use best efforts to obtain extensions of the Letter of Credit or obtain a replacement thereof for successive periods
to the earlier of (a) June 30, 2007 or (b) the occurrence of a Termination Event. If (i) the Letter of Credit is not renewed by Issuer and a replacement thereof is not obtained prior to the expiration of the Letter of Credit, and (ii) no Event of
Default by Company has occurred or is continuing, IPIFS shall not be entitled to seek reimbursement pursuant to Section 2.01 of this Reimbursement Agreement prior to the earliest of (w) the date that is 6 months after the date of non-renewal of the
Letter of Credit, (x) the date an insolvency case is commenced with respect to the Company or any of its property, (y) the date any action is commenced by the Company against IPIFS, or (z) June 30, 2007. 
  
 Section 3.09. No Additional Indebtedness. So long as no Termination
Event shall have occurred, the Company shall not, nor shall it permit CDTAC or any Subsidiary of CDTAC or the Company, to create, incur, assume or suffer to exist any Indebtedness other than (a) Indebtedness under the Credit Agreement or this
Reimbursement Agreement, or (b) purchase money indebtedness. 
  
 ARTICLE IV 
  
 EVENTS OF DEFAULT 

 
 Section 4.01. Events of Default. The occurrence of any of the
following events shall be an “Event of Default” hereunder: 
  
 (a) The Company shall fail to pay any amount payable hereunder on the date when due; or 
  
 (b) The Company shall fail to pay any amount payable under any of the other Related Documents to which it is a party on the date when due
(after giving effect to applicable grace periods, if any); or 
  
 (c) Any representation, warranty, certification or statement made by the Company (or incorporated by reference) herein, or made by the Company in any of the Related Documents or in any writing furnished by or on
behalf of the Company in connection with any Related Document, shall prove to have been false, misleading or incomplete in any material respect on the date as of which it was made; or 
  
 (d) The Company shall fail to perform or observe any of the material provisions of Section 3.03, 3.04(a),
3.05, 3.06 or 3.07 of this Reimbursement Agreement or Section 5.1, 5.2, 5.3, 5.5, 5.6 or 5.10 of the Security Agreement; or 
  
 (e) The Company shall fail to perform or observe any other term, covenant or agreement required to be performed or observed by the Company
(not specified in subsection (a), (b) or (d) above) contained in (or incorporated by referenced into) this Reimbursement Agreement on its part to be performed or observed (including, without limitation, any covenant contained in any other Related
Document) and any such failure 
  

 12 

 shall remain unremedied for a period of 30 days after the date upon which written notice of such
failure, requiring the same to be remedied, shall have been given to the Company by IPIFS; or 
  
 (f) The Company shall fail to pay any Indebtedness (excluding, to the extent classified under GAAP as a liability on a balance sheet, (i)
any amounts owing in respect of any class of preferred stock of CDTAC or any of its Subsidiaries or (ii) any liability relating to any obligation to issue stock) in a principal amount of $1,000,000 or more (individually or in the aggregate) or any
interest or premium thereon when due (whether by scheduled maturity, required prepayment, acceleration, demand or otherwise) and such failure shall continue after the applicable grace period, if any, specified in the agreement or instrument relating
to such Indebtedness; or any other default or event under any agreement or instrument relating to any such Indebtedness shall occur and shall continue after the applicable grace period, if any, specified in such agreement or instrument, if the
effect of such default or event is to accelerate, or to permit the acceleration, of the maturity of such Indebtedness; or any such Indebtedness shall be declared to be due and payable, or required to be prepaid, prior to the stated maturity thereof;
or 
  
 (g) Liquidation or dissolution of the
Company, or suspension of the business of the Company or filing by the Company of a voluntary petition in bankruptcy or a voluntary petition or an answer seeking reorganization, arrangement, readjustment of its debts or for any other relief under
the United States Bankruptcy Code, as amended, or under any other insolvency act or law, state, federal or foreign, now or hereafter existing, or any other action of the Company indicating its consent to, approval of, or acquiescence in any such
petition or proceeding; the application by the Company for, or the appointment by or with the consent or acquiescence of the Company of, a receiver, a trustee or a custodian for the Company; the application by the Company for, or the consent to or
acquiescence of the Company in, an assignment for the benefit of creditors; or the inability of the Company or the admission by the Company in writing of its inability to pay its debts as they mature; or 
  
 (h) Filing of an involuntary petition against the Company in
bankruptcy or seeking reorganization, arrangement, readjustment of its debts or for any other relief under the United States Bankruptcy Code, as amended, or under any other insolvency act or law, state, federal or foreign, now or hereafter existing;
or the involuntary appointment of a receiver, a trustee or a custodian of the Company or for all or a substantial part of its property; the issuance of a warrant of attachment, execution or similar process against any substantial part of the
property of the Company and the continuance of any of such events for sixty (60) days undismissed, undischarged or unstayed; or 
  
 (i) This Reimbursement Agreement or the Security Agreement shall at any time for any reason cease to be valid and binding on the Company,
or shall be declared to be null and void, or the validity or enforceability thereof shall be contested by the Company, or the Company shall deny that it has any or further liability or obligation under this Reimbursement Agreement or the Security
Agreement, except to the extent that it is due to the willful misconduct or fraudulent behavior of IPIFS; or 
  

 13 

 (j) IPIFS shall, at any time for any reason, cease to have a valid, first priority,
perfected security interest in and lien on the Collateral located in the United States or the United Kingdom or any material part thereof, except to the extent resulting solely from the action of IPIFS. Notwithstanding anything to the contrary, this
subsection (j) shall not apply to Proceeds of the Collateral other than cash Proceeds in the IP Account or other identifiable Proceeds; or 
  
 (k) Any “event of default” (including, without limitation, an event of default resulting from a breach of Section 5.1(b) of the
Credit Agreement) of the Company under and as defined in the Credit Agreement or any other Related Document to which the Company is a party shall have occurred and not been waived; or 
  
 (l) The Credit Agreement or any Related Document to which the Company is a party or signatory shall for any
reason cease to be in full force and effect prior to its termination by expiry in accordance with its terms and conditions. 
  
 Section 4.02. Rights Upon an Event of Default. Upon the occurrence of an Event of Default, and at any time thereafter unless and until such Event
of Default has been waived by IPIFS or cured to the satisfaction of IPIFS, IPIFS shall be entitled to take any of the following actions without prejudice to the rights of IPIFS to enforce its claims against the Company, except as otherwise
specifically provided for herein: 
  
 (a)
Acceleration of Obligations. Declare all unreimbursed drawings in respect of the Letter of Credit, all unreimbursed IPIFS Payments and any and all other indebtedness or obligations of any and every kind owing by the Company to IPIFS hereunder
to be due, whereupon the same shall be immediately due and payable without presentment, demand, protest or other notice of any kind, all of which are hereby waived by the Company. 
  
 (b) Enforcement of Rights. Enforce any and all rights and interests created and existing hereunder,
under the Security Agreement or under any of the other Related Documents and all rights of set-off. 
  
 Section 4.03. No Remedy Exclusive. No remedy herein conferred upon or reserved to IPIFS is intended to be exclusive of any other available remedy
or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given hereunder, under the other Related Documents, or now or hereafter existing at law or in equity or by statute. 
  
 Section 4.04. Anti-Marshalling Provisions. The right is hereby given
by the Company to IPIFS to make releases (whether in whole or in part) of all or any part of the Collateral under the Security Agreement or any other document agreeable to IPIFS without notice to, or the consent, approval or agreement of other
parties and interests, including junior lienors, which releases shall not impair in any manner the validity of or priority of the liens and security interest 
  

 14 

 in the remaining Collateral conferred under the Security Agreement or any other document, nor release the Company from
liability for the obligations secured thereby. Notwithstanding the existence of any other security interest in the Collateral held by IPIFS, IPIFS shall have the right to determine the order in which any or all of the Collateral shall be subjected
to the remedies provided herein, or in the Security Agreement or any other document. The Company hereby waives any and all right to require the marshalling of assets in connection with the exercise of any of the remedies permitted by applicable law
or provided herein or in the Security Agreement or any other document. Notwithstanding anything herein to the contrary, the Proceeds from the sale of Collateral shall be applied in accordance with Section 6.4 of the Security Agreement. 

 
 ARTICLE V 
  
 ADVANCES 
  
 Section 5.01. The Company may request from the Lender advances of Loans from time to time upon the conditions
and terms contained in the Credit Agreement, provided that, the Company fully complies with the requirements set forth in Sections 5.02 and 5.03 below prior to submitting to the Lender such request for an advance (each, an
“Advance Request”). 
  
 Section 5.02.
Notwithstanding anything to the contrary in this Reimbursement Agreement, the Credit Agreement or any Related Document, the Company shall not submit an Advance Request nor otherwise request or receive any Loan, or permit any of its Subsidiaries to
request or receive any Loan, if at the time of such request for or receipt of any Loan, any Event of Default has occurred and is continuing. 
  
 Section 5.03. At least three (3) but not more than fifteen (15) Business Days prior to the Company’s submission of an Advance Request,
the Company shall send IPIFS a Compliance Certificate signed by an officer of the Company in the form attached hereto as Exhibit A. IPIFS may (but shall not be required to) object to the Company making an Advance Request or otherwise requesting or
receiving any Loan if at the time of such request for or receipt of such Loan, IPIFS reasonably believes that a Default has occurred and is continuing. IPIFS’ failure to make such objection shall not waive any rights or obligations of either
party under this Reimbursement Agreement or any other Related Document. 
  
 ARTICLE VI 
  
 MISCELLANEOUS 
  
 Section 6.01. Amendments, Etc. No amendment or waiver of any provision
of this Reimbursement Agreement, nor consent to any departure by the Company therefrom, shall in any event be effective unless the same shall be in writing and signed by IPIFS and then such amendment, waiver or consent shall be effective only in the
specific instance and for the specific purpose for which given. 
  

 15 

 Section 6.02. Notices. All notices and other communications provided for hereunder shall be in
writing and sent by receipted hand delivery (including Federal Express or other receipted courier service) or regular mail, if to the Company, at its address at Greenwich House, Madingley Rise, Madingley Road, Cambridge CB3 0TX, United Kingdom,
Attention: President; if to IPIFS, at its address as 2221 Edge Lake Drive, Suite 100, Charlotte, North Carolina 28217, Attention: President; or, as to each party, at such other address as shall be designated by such party in a written notice to
other party. All such notices and communications shall, when delivered, be effective when deposited with the courier addressed as aforesaid. 
  
 Section 6.03. No Waiver. No failure on the part of IPIFS to exercise, and no delay in exercising, any right hereunder shall operate as a waiver
thereof; nor shall any single or partial exercise of any right hereunder preclude any other or further exercise thereof or the exercise of any other right. 
  
 Section 6.04. Right of Set-off. (a) Upon the occurrence of any Event of Default, IPIFS is hereby authorized at any time and from time to time, to
the fullest extent permitted by law, to set off and apply any and all monies at any time held and other indebtedness at any time owing by IPIFS to or for the credit or the account of the Company against any and all of the obligations of the Company
now and hereafter existing under this Reimbursement Agreement, irrespective of whether or not IPIFS shall have made any demand hereunder and although such obligations may be contingent or unmatured. 
  
 (b) IPIFS agrees promptly to notify the Company after any such set-off and
application referred to in subsection (a) above, provided that the failure to give such notice shall not affect the validity of such set-off and application. The rights of IPIFS under this Section 6.04 are in addition to other rights
and remedies (including, without limitation, other rights of set-off) which IPIFS may have. 
  
 Section 6.05. Indemnification. The Company shall indemnify and hold IPIFS, its successors, assigns, affiliates, directors, officers and agents
(collectively, “Indemnities”) harmless from and against any and all claims, damages, losses, liabilities, costs or expenses which any Indemnitee may incur or which may be claimed against any Indemnitee by any Person by reason of or in
connection with (a) the execution, delivery or performance of this Reimbursement Agreement (including,, without limitation, execution by the Company from time to time of certifications substantially in the form set forth in Schedules A and B of the
Reimbursement Agreement), the Security Agreement (including, without limitation, execution of the Conditional Assignment and Trademark Assignment substantially in the forms set forth in Schedule E of the Security Agreement), the Credit Agreement,
the Letter of Understanding, the Letter of Credit, any filings in the United States Patent and Trademark Office, any UCC-1 filings, or the Letter of Credit Reimbursement Agreement (in the case of the Letter of Credit Reimbursement Agreement, as in
effect on the date hereof and in the form provided to the Company on or prior to the date hereof), (b) any transaction contemplated thereby, or (c) any Collateral granted under any Related Document or the foreclosure, sale or assignment of any such
Collateral, provided that such indemnity shall not be available to the extent that such losses, claims, damages, liabilities, costs or related expense are determined by a court of competent jurisdiction by final and non-appealable judgment to
have resulted from the gross negligence or 
  

 16 

 willful misconduct of any Indemnitee; and provided further that such indemnity shall not be available to the
extent that such losses, claims, damages, liabilities, costs or related expense are in direct respect of amounts owing under Section 2 or Section 3 of the Letter of Credit Reimbursement Agreement.  
  
 Nothing in this Section 6.05 is intended to limit the Company’s
obligations contained in Article II or Section 6.06. Without prejudice to the survival of any other obligation of the Company hereunder, the indemnities and obligations of the Company contained in this Section 6.05 shall survive
the payment in full of amounts payable pursuant to Article II and the termination of the Credit Agreement, the Letter of Credit, the Letter of Understanding, the Letter of Credit Reimbursement Agreements and any other Related Document.

  
 Section 6.06. Costs, Expenses and Taxes. The Company
agrees to pay immediately when due all reasonable costs and expenses actually incurred in connection with the preparation, execution, delivery, filing, recording and enforcement of or, during the continuation of an Event of Default, monitoring of
compliance with, this Reimbursement Agreement and the Related Documents to which the Company is a party and any other documents which may be delivered in connection with this Reimbursement Agreement or the transactions contemplated hereby,
including, without limitation, the reasonable fees and out-of-pocket expenses of IPIFS and of counsel and any agents or consultants for IPIFS, with respect thereto and with respect to advising IPIFS as to its rights and responsibilities under this
Reimbursement Agreement, and including without limitation the cost of any UCC searches and other lien searches (including searches of liens and titles at the U.S. Patent and Trademark Office, the U.S. Copyright Office, and any equivalent state or
foreign agency) and all reasonable costs and expenses (including counsel fees and expenses) in connection with (i) the preparation and enforcement of this Reimbursement Agreement, the Related Documents and such other documents as may be delivered in
connection herewith or therewith or (ii) any action or proceeding to enforce, or otherwise relating to, this Reimbursement Agreement or any other Related Document. In addition, the Company shall pay any and all stamps and other taxes and fees
payable or determined to be payable in connection with the execution, delivery, filing and recording of this Reimbursement Agreement, the Related Documents and such other documents, and agrees to save IPIFS harmless from and against any and all
liabilities with respect to or resulting from any delay in paying or omission to pay such taxes and fees; provided that notwithstanding anything herein to the contrary, the Company’s requirement to pay preparation, execution and delivery
expenses, and filing and recording expenses (other than to the extent arising out of any action required to be taken for the maintenance of IPIFS’s perfected security interest in the Collateral as a result of a change in applicable law or by
any action or inaction of the Company), shall not be in excess of the amounts set forth in the Fee Disbursement Schedule. 
  
 Section 6.07. Binding Effect. This Reimbursement Agreement shall become effective when it shall have been executed by the Company and IPIFS and
thereafter shall be binding upon and inure to the benefit of the Company and IPIFS and their respective successors and permitted assigns, except that the Company shall not have the right to assign its rights hereunder or any interest herein without
the prior written consent of IPIFS, except in the case of an initial public offering of the stock of the Company. IPIFS may, without cost or expense to the Company, assign all or any part of, or any interest (undivided or divided) in, IPIFS’
rights and benefits 
  

 17 

 under this Reimbursement Agreement or any other Related Document, without cost or expense to the Company, to any Eligible
Assignee. For the purpose of this Section 6.07, the term “Eligible Assignee” shall mean (a) prior to the occurrence of a Default or an Event of Default, any financial institution, financial services company, insurance or reinsurance
company, government agency, investment company, institutional investor or pension fund, or (b) after a Default or Event of Default, any Person. To the extent of any assignment by IPIFS, the assignee shall have the same rights and benefits against
the Company hereunder as it would have had if such assignee were IPIFS. The Company may not assign this Reimbursement Agreement without the prior written consent of IPIFS, which consent may be granted or withheld at the sole discretion of IPIFS.

  
 Section 6.08. Severability. Any provision of this
Reimbursement Agreement which is prohibited, unenforceable or not authorized in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition, unenforceability or non-authorization without invalidating the
remaining provisions hereof or affecting the validity, enforceability or legality of such provision in any other jurisdiction. 
  
 Section 6.09. Headings. Article and section headings in this Reimbursement Agreement are included herein for convenience of reference only and
shall not constitute a part of this Reimbursement Agreement for any other purpose. 
  
 Section 6.10. Reinstatement. The Company agrees that this Reimbursement Agreement shall continue to be effective or be reinstated, as the case may be, at any time payment received by the Lender, the
Issuer or any other Person in respect of any Reimbursement Amount or any Company’s Obligation is rescinded or must be restored for any reason, or is repaid by the Lender, the Issuer, IPIFS or any other Person in whole or in part in good faith
settlement of any pending or threatened avoidance claim. 
  
 Section 6.11. Confidentiality; Sharing Information. IPIFS agrees to maintain the confidentiality of the Information (as defined below), except that Information may be disclosed (a) to its affiliates and to its affiliates’
respective partners, directors, officers, employees, agents, advisors and representatives (it being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such Information and instructed to keep
such Information confidential), (b) to the extent requested by any regulatory authority purporting to have jurisdiction over it, (c) to the extent required by applicable laws or regulations or by any subpoena or similar legal process, (d) to any
other party hereto, (e) in connection with the exercise of any remedies hereunder or under any other Related Document or any action or proceeding relating to this Reimbursement Agreement or any other Related Document or the enforcement of rights
hereunder or thereunder, (f) subject to any agreement containing provisions substantially the same as those of this Section, to (i) any assignee of or participant in, or any prospective assignee of or participant in, any of its rights or obligations
under this Reimbursement Agreement or (ii) any actual or prospective counterparty (or its advisors) to any swap or derivative transaction relating to the Company and its obligations, (g) with the consent of the Company or (h) to the extent such
Information (x) becomes publicly available other than as a result of a breach of this Section or (y) becomes available to IPIFS or any of its affiliates on a non-confidential basis from a source other than the Company. 
  

 18 

 For the purpose of this Section, “Information” means all information received from the
Company or any Subsidiary of the Company relating to the Company or any Subsidiary of the company or any of their respective businesses, other than any such information that is available to IPIFS on a non-confidential basis prior to disclosure by
the Company or any Subsidiary of the Company, provided that, in the case of information received from the Company or any Subsidiary of the Company after the date hereof, such information is clearly identified at the time of delivery as confidential.
Any Person required to maintain the confidentiality of Information as provided in this Section shall be considered to have complied with its obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality of
such Information as such Person would accord to its own confidential information. 
  
 Section 6.12. Entire Agreement. This Reimbursement Agreement, together with the Credit Agreement, the Letter of Credit Reimbursement Agreements and each other Related Document, constitutes and expresses
the entire understanding between the parties hereto with respect to the subject matter hereof, and supersedes all prior negotiations, agreements, understandings, inducements, commitments or conditions, express or implied, oral or written, except as
herein contained. The express terms hereof control and supersede any course of performance or usage of the trade inconsistent with any of the terms hereof. 
  
 Section 6.13. Counterparts. This Reimbursement Agreement may be executed in several counterparts, each of which shall be an original and all of
which shall constitute but one and the same instrument. 
  
 Section 6.14 Governing Law; Consent to Jurisdiction. 
  
 (a) THIS REIMBURSEMENT AGREEMENT IS BEING DELIVERED AND IS INTENDED TO BE PERFORMED IN THE STATE OF NORTH CAROLINA AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, AND THE RIGHTS OF THE PARTIES SHALL BE GOVERNED BY, THE LAWS OF SUCH
STATE. ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS REIMBURSEMENT AGREEMENT MAY BE BROUGHT IN ANY COURT SITTING IN THE COUNTY OF NEW YORK, STATE OF NEW YORK, UNITED STATES OF AMERICA, AND, BY EXECUTION AND DELIVERY OF THIS REIMBURSEMENT
AGREEMENT, THE COMPANY HEREBY IRREVOCABLY ACCEPTS FOR ITSELF AND IN RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE JURISDICTION OF SUCH COURTS. THE COMPANY FURTHER IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS OUT OF ANY OF THE
AFOREMENTIONED COURTS IN ANY SUCH ACTION OR PROCEEDING BY THE MAILING OF COPIES THEREOF BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, TO THE COMPANY AT ITS ADDRESS FOR NOTICES SET FORTH IN SECTION 6.02 HEREOF, SUCH SERVICE TO BECOME
EFFECTIVE 10 DAYS AFTER SUCH MAILING. NOTHING HEREIN SHALL AFFECT THE RIGHT OF IPIFS TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO COMMENCE LEGAL PROCEEDINGS OR TO OTHERWISE PROCEED AGAINST THE COMPANY IN ANY OTHER JURISDICTION.

  

 19 

 (b) THE COMPANY HEREBY IRREVOCABLY WAIVES ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING
OF VENUE OF ANY OF THE AFORESAID ACTIONS OR PROCEEDINGS ARISING OUT OF OR IN CONNECTION WITH THIS REIMBURSEMENT AGREEMENT BROUGHT IN THE COURTS REFERRED TO IN SUBSECTION (A) HEREOF AND HEREBY FURTHER IRREVOCABLY WAIVES AND AGREES NOT TO PLEAD OR
CLAIM IN ANY SUCH COURT THAT ANY SUCH ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. 
  
 Section 6.15. Waiver of Jury Trial. IN ANY LITIGATION IN ANY COURT WITH RESPECT TO, IN CONNECTION WITH, OR ARISING OUT OF THIS REIMBURSEMENT
AGREEMENT, THE LETTER OF CREDIT, ANY OF THE OTHER RELATED DOCUMENTS, OR ANY INSTRUMENT OR DOCUMENT DELIVERED PURSUANT TO THIS REIMBURSEMENT AGREEMENT OR THE OTHER RELATED DOCUMENTS, OR THE VALIDITY, PROTECTION, INTERPRETATION, COLLECTION OR
ENFORCEMENT THEREOF, OR ANY OTHER CLAIM OR DISPUTE HOWSOEVER ARISING BETWEEN COMPANY AND THE BANK, THE COMPANY HEREBY WAIVES, TO THE EXTENT PERMITTED BY APPLICABLE LAW, TRIAL BY JURY IN CONNECTION WITH ANY SUCH LITIGATION. 
  
 Section 6.16. Advice of Counsel. The Company represents to IPIFS that
the Company’s attorneys have reviewed this Reimbursement Agreement and that the Company has discussed this Reimbursement Agreement with its attorneys. 
  
 (Remainder of page intentionally left blank) 
  

 20 

 IN WITNESS WHEREOF, the parties hereto have caused this Reimbursement Agreement to be duly
executed and delivered by their respective officers thereunto duly authorized as of the date first above written. 
  

			
	CAMBRIDGE DISPLAY TECHNOLOGY LIMITED
		
	By:	 	 /s/    Stephen Chandler

	Name:	 	Stephen Chandler
	Title:	 	General Counsel
	
	IPIFS GUARANTEE CORP.
		
	By:	 	 /s/    Keith Agisim

	Name:	 	Keith Agisim
	Title:	 	President

  

 21 

 EXHIBIT A 
  

COMPLIANCE CERTIFICATE 
  

	TO:	            IPIFS GUARANTEE CORP. 

	 	            2221 Edge Lake Dr. 

	 	            Suite 100 

	 	            Charlotte, NC 28217 

	 	            USA 

  

	FROM:	        CAMBRIDGE DISPLAY TECHNOLOGY LTD. 

  
 The undersigned authorized officer of Cambridge Display Technology Ltd. (the “Company”) hereby delivers this
Compliance Certificate to IPIFS Guarantee Corp. (“IPIFS”) as of             , 200_1 (the “Certificate Date”), pursuant to the Reimbursement Agreement dated June     , 2004 (as amended, modified or restated from time to time, the
“Reimbursement Agreement”) by and between IPIFS and the Company. Capitalized terms not otherwise defined in this Compliance Certificate have the respective meanings assigned thereto in the Reimbursement Agreement. 
  
 [The undersigned officer of the Company certifies that the Company
intends to submit a request to Lloyds TSB Bank plc (the “Lender”) on                     , 200_ for a Loan under its $15,000,000,
36-month line of credit issued by the Lender on June     , 2004, such Loan to be in principal amount of
                     and to be advanced to the Company on             ,
200_.]2 
  
 The undersigned officer of the Company [also] certifies that as of the Certificate Date: (i) the Company is in compliance with all covenants
set forth or incorporated by reference in the Reimbursement Agreement, the Credit Agreement and any Related Documents, including, without limitation Section 3.03 of this Reimbursement Agreement as indicated in the table below, and Sections
5.1, 5.3, 5.5, 5.6 and 5.7 of the Security Agreement dated June     , 2004 by and between the Company and IPIFS (the “Security Agreement”); (ii) all representations and warranties set forth or
incorporated by reference in the Reimbursement Agreement, the Credit Agreement and any Related Documents are true and correct in all material respects, including, without limitation, Sections 4.1, 4.4, 4.8, and 4.9 of the Security
Agreement; (iii) no Event of Default (as defined in the Reimbursement Agreement) has occurred and is continuing; and (iv) no event or circumstance that, upon the giving of notice, the passage of time or both, would constitute an Event of Default has
occurred and is continuing. 

	1	If Compliance Certificate is delivered pursuant to Section 5.03 of the Reimbursement Agreement, insert the date of delivery of the certificate. If Compliance
Certificate is delivered pursuant to Section 3.04 of the Reimbursement Agreement, insert the last day of the applicable fiscal quarter or fiscal year. 

	2	Include this sentence in any Compliance Certificate delivered pursuant to Section 5.03 of the Reimbursement Agreement. 

  

 22 

 Attached are documents sufficient to support this certification. 
  
 The officer acknowledges that no Loan may be requested or advanced at any
time that the Company is not in compliance with all of the terms and conditions set forth or incorporated by reference in the Reimbursement Agreement, the Credit Agreement and any Related Documents, and that compliance is determined not just as of
the Certificate Date, but also as of the date of request for, and the date of advance of, any Loan. 
  
 PLEASE INDICATE COMPLIANCE STATUS 
 BY CIRCLING YES OR NO UNDER “COMPLIES”
COLUMN 
  

							
	 Financial Covenants

	  	Required

	  	Actual

	  	Complies

	 Minimum Working Capital
	  	- $15 Million	  	_________	  	    YES         NO
	 Minimum Consolidated Total Net Worth
	  	$75 million	  	_________	  	    YES         NO

  

					
	 	 	Sincerely,
		
	 	 	CAMBRIDGE DISPLAY TECHNOLOGY LTD.
	 	 	 	 	 
	Dated:            	 	By:	 	  

	 	 	Name:	 	 
	 	 	Title:	 	 

  

  
 IPIFS GUARANTEE CORP. USE ONLY 
  

							
	 Received By:
	  	________________________________________
	 Date:
	  	________________________________________
	 Verified:
	  	________________________________________
	 Date:
	  	________________________________________

  

					
	 Compliance Status:
	  	 YES            NO

		
	 Object To Advance Request
	  	 YES            NO

  

 23 

 EXHIBIT B 
  

IP ACCOUNT CERTIFICATION 
  

	TO:	            LLOYDS TSB BANK PLC 

	 	            Black Horse House 

	 	            Castle Park 

	 	            Cambridge CB3 OAR 

	 	            UNITED KINGDOM 

  

	 	            IPIFS GUARANTEE CORP. 

	 	            2221 Edge Lake Dr. 

	 	            Suite 100 

	 	            Charlotte, NC 28217 

	 	            USA 

  

	FROM:	        CAMBRIDGE DISPLAY TECHNOLOGY LIMITED 

  
 The undersigned authorized officer of Cambridge Display Technology Limited. (the “Company”) hereby delivers this
IP Account Certification to Lloyds TSB Bank plc (“Lender”) and IPIFS Guarantee Corp. (“IPIFS”) as of June     , 2004 (the “Certification Date”), pursuant to the Reimbursement Agreement dated
June     , 2004 (as amended, modified or restated from time to time, the “Reimbursement Agreement”) by and between IPIFS and the Company. Capitalized terms not otherwise defined in this IP Account Certification
have the respective meanings assigned thereto in the Reimbursement Agreement. 
  
 The undersigned officer of the Company certifies that from and after the Certification Date and until the Company’s Obligations have been performed and paid in full: (i) the Company has created and shall maintain
a separate, segregated deposit accounts at              [Lender or Fleet Bank] (Account Nos.             , as
amended or modified from time to time, including any successor accounts) into which all Proceeds (as defined in the Security Agreement) of the Collateral, including, without limitation, up-front licensing fees and royalties, shall be collected and
deposited (collectively the “IP Account”); (ii) the Company shall segregate all moneys in the IP Account from other moneys belonging to Company; (iii) the company shall only deposit Proceeds of the Collateral into the IP Account;
(iv) the Company shall hold each deposit in the IP Account for at least five (5) business days (each such five day period, a “Hold Period”); (v) upon expiration of the applicable Hold Period, if no Default or Event of Default has occurred
and is continuing, the Company may use such funds as it desires in the ordinary course of Company’s business; (vi) if no Default or Event of Default has occurred and is continuing, only the authorized signature of an officer of the Company is
required to withdraw or transfer funds from the IP Account; (vii) if a Default or Event of Default has occurred and is continuing, the Company shall not withdraw any moneys from the IP Account without the prior written consent of IPIFS; and (viii)
if a Default or Event of Default has occurred and is continuing, 
  

 24 

 signatures of (a) a duly authorized agent of the Company and (b) a duly authorized agent of IPIFS, are required for the
Company to withdraw or transfer funds from the IP Account, provided that IPIFS may withdraw or transfer funds from such account upon the signature of its duly authorized agent without the signature of the Company. 
  

					
	 	 	Sincerely,
		
	 	 	CAMBRIDGE DISPLAY TECHNOLOGY LIMITED.
			
	Dated:            	 	By:	 	  

	 	 	Name:	 	 
	 	 	Title:	 	 

  

 25

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