Document:

Exhibit 10.28

    Exhibit 10.28

    

      CABOT
        MICROELECTRONICS CORPORATION

      DIRECTORS’
        DEFERRED COMPENSATION PLAN

       

      Cabot
        Microelectronics Corporation (the “Company”) desires to establish a Directors’
Deferred Compensation Plan (the “Plan”) to assist the Company in attracting and
        retaining persons of competence and stature to serve as Directors by giving
        those Directors the option of deferring receipt of the fees payable to them
        by
        the Company for their services as Directors and creating an opportunity for
        appreciation of fees deferred based on appreciation of the Company’s Common
        Shares. 

      Therefore,
        the Company hereby adopts the Plan as hereinafter set forth:

      1.  Effective
        Date.
        The
        Plan is effective as of the date of its adoption by the Board of Directors
        of
        the Company.

      2.  Participation.
        Each
        Director of the Company who: (a) is duly elected to the Company’s Board of
        Directors; and (b) receives fees for services as a Director, is an “Eligible
        Director.” Each Eligible Director may elect to defer receipt of fees otherwise
        payable to that Eligible Director, as provided for in the Plan. Each Eligible
        Director who elects to defer fees will be a Participant in the
        Plan.

      3.  Administration.
        The
        Company’s Board of Directors appoints Matthew Neville and H. Carol Bernstein to
        act as the Administrators of the Plan (the “Administrator”). The Administrators
        will serve at the pleasure of the Board of Directors and will administer,
        construe and interpret the Plan. The Administrators will not be liable for
        any
        act done or determination made in good faith. The Board of Directors has
        the
        power to designate additional or replacement Administrators at its discretion.
        The expense of administering the Plan shall be borne by the Company and shall
        not be charged against benefits payable hereunder. 

       

      
        
          
          

        

        
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      4.  Deferrals.

      (a)  Deferral
        Election.
        An
        Eligible Director may file with the Administrator prior to December 1 of
        each
        year an election in writing to participate in the Plan and to defer all or
        a
        portion of the fees otherwise payable to the Eligible Director for succeeding
        periods (a “Deferral Election”). Upon adoption of the Plan, Eligible Directors
        may elect to defer fees otherwise payable for the fiscal quarter during which
        the Plan was adopted and subsequent periods by making a Deferral Election.
        Each
        Eligible Director who first becomes eligible to participate after the date
        of
        the adoption of the Plan may make a Deferral Election for the portion of
        the
        year in which the Eligible Director first became eligible with respect to
        fees
        to be received after the date of that election. When a Deferral Election
        is
        filed, an amount equal to all or a portion (as designated in the Deferral
        Election) of the fees otherwise payable to a Participant for succeeding periods
        (as designated in the Deferral Election) will be credited to a deferral account
        maintained on behalf of that Participant (the “Deferral Account”). A Deferral
        Election must also state a distribution commencement date as provided under
        paragraph 5, and a method of distribution (lump sum or equal annual
        installments). If a Deferral Election has been filed to participate in the
        Plan
        for succeeding periods and a Participant wishes to discontinue such deferrals,
        an election in writing to terminate participation in the Plan for any subsequent
        period must be filed with the Administrators prior to the beginning of such
        period.

       

      
        
          
          

        

        
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      (b)  Minimal
        Deferral.
        The
        amount of Deferral Election may not be less than $1,000 per calendar quarter.
        

      (c)  Accounting.
        The
        Deferral Accounts will be maintained by the Company and will list and reflect
        each Participant’s credits and valuations. The Administrator will provide each
        Participant an annual statement of the balance in that Participant’s Deferral
        Account. The Company will credit to each Participant’s Deferral Account an
        amount equivalent to the fees or portion of those fees, that would have been
        paid to the Participant if the Participant had not elected to participate
        in the
        Plan. The credit will be made on the date on which the fee would have been
        paid
        absent a Deferral Election. No funds will be segregated into the Deferral
        Account of Participants. 

      (d)  Valuation.
        Each
        amount credited to a Deferral Account will be assigned a number of Share
        Units
        (including fractions thereof) determined by dividing the amount credited
        to the
        Deferral Account, whether in lieu of payment of fees for service as a director
        or as a dividend or other distribution attributable to those Share Units,
        by the
        Fair Market Value of the Company’s Common Shares (as defined below) on the date
        of credit. Fair Market Value of the Company’s Common Shares means: (i) the
        closing price of the Company’s Common Shares on the principal exchange on which
        the Company’s Common Shares are then trading, if any, on the date of credit, or,
        if shares were not traded on the date of credit, then on the next preceding
        trading day during which a sale 

       

      
        
          
          

        

        
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occurred;
          or (ii) if the Common Shares are not traded on an exchange but are quoted
          on the
          Nasdaq National Market System or a successor quotation system, (1) the
          last
          sales price (if the Common Shares are then listed as a National Market
          Issue
          under Nasdaq), or (2) the mean between the closing representative bid and
          asked
          prices for the Common Shares on the date of credit as reported by Nasdaq
          or a
          successor quotation system, or (iii) if the Common Shares are not publicly
          traded on an exchange and not quoted on Nasdaq or a successor quotation
          system
          the mean between the closing bid and asked prices for the Common Shares
          on the
          date of credit, as determined in good faith by the Company’s Chief Financial
          Officer; or (iv) if the Company’s Common Shares are not publicly traded, the
          fair market value established by the Company’s Chief Financial Officer acting in
          good faith. Each Share Unit will have the value of a Common Share of the
          Company. The number of Share Units will be adjusted proportionally to reflect
          stock splits, stock dividends or other capital adjustments effected without
          receipt of consideration by the Company,
          provided, that, in the event of a merger, acquisition or other business
          combination of the Company with or into another entity, any adjustment
          provided
          for in the applicable agreement and plan of merger (or similar document)
          shall
          be conclusively deemed to be appropriate for purposes of this
          Section.

      

      5.  Distribution.
        A
        Participant must elect in writing, at the time each Deferral Election is
        made
        under subparagraph 4(a), the date on which distribution of the amounts credited
        to the Participant’s Deferral Account to which that Deferral Election relates
        will commence and 

       

      
        
          
          

        

        
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the
          method of distribution, as permitted hereunder. The distribution date elected
          by
          the Participant for payment of fees deferred in a given year shall be the
          Scheduled Withdrawal Date. A Participant’s Scheduled Withdrawal Date with
          respect to amounts deferred in a given year can be no earlier than two
          years
          from the last day of the year in which the deferrals are made, other than
          for
          termination of service, and will be no later than the date the Participant
          terminates service as a Director. Payment will be made in the Company’s common
          shares only, in one distribution or equal annual distributions based on
          the
          number of Share Units attributable to the applicable Deferral Election
          determined as of the September 30 immediately preceding commencement of
          distribution. Installments may not be made more often than monthly and
          may not
          extend for more than five years. The time of and method of distribution
          of
          benefits may vary with each separate Deferral Election. The Deferral Accounts
          represent an unsecured right to acquire the Company’s Common Shares. The
          Participant may change a Scheduled Withdrawal Date by submitting a new
          Deferral
          Election Form at least thirteen (13) months prior to the date the Participant
          otherwise would have received the distribution. The new Scheduled Withdrawal
          Date selected by the Participant must be at least two (2) years following
          the
          date the new Deferral Election Form is submitted. In the event a Participant
          does not elect a Scheduled Withdrawal Date, all deferred amounts will be
          distributed upon termination of service. The Administrator may elect to
          accelerate the distribution of any Deferral Account in its sole
          discretion.

      

      6.  Early
        Withdrawal Election.
        A
        Participant may elect, at any time, to withdraw all or a portion of his or
        her
        Deferral Account, calculated as if the Participant had terminated service
        as of
        the day of the election, less an early withdrawal penalty equal to 10% of
        such
        amount (the net amount shall be referred to a the “Early Withdrawal Amount”).
        The 

       

      
        
          
          

        

        
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Administrator
          will pay the Early Withdrawal Amount as soon as possible after receiving
          the
          Participant’s early withdrawal election. 

      

      7.  Death
        or Disability.

      (a)  In
        the
        event a Participant’s service is terminated by reason of death or disability
        prior to the distribution of any portion of that Participant’s Deferral Account,
        the Administrator will, within ninety (90) days of the date of service
        termination, commence distribution of amounts credited to the Deferral Account
        to the beneficiary or beneficiaries of the Participant or to the Participant.
        Distribution will be made in accordance with the method of distribution elected
        by the Participant or beneficiary pursuant to paragraph 5 hereof. In the
        event a
        Participant’s death or disability occurs after distribution of amounts credited
        to the Deferral Account hereunder has begun, the Administrator will continue
        to
        make distributions to the Participant (or to the beneficiary or beneficiaries
        in
        the event of death) in accordance with the methods of distribution elected
        by
        the Participant pursuant to paragraph 5 hereof.

      (b)  Each
        Participant has the right to designate one or more beneficiaries to receive
        distributions in the event of a Participant’s death by filing with the
        Administrator a Beneficiary Designation Form. The designated beneficiary
        or
        beneficiaries may be changed by a Participant at any time prior to that
        Participant’s death by the delivery to the Administrator of a new Beneficiary
        Designation Form. If no beneficiary has been designated, or if no designated
        beneficiary survives the Participant, 

       

      
        
          
          

        

        
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              distributions
          pursuant to this
          provision will be made to the Participant’s estate. 

      

      8.  Assignment
        and Alienation of Benefits.
        The
        right of each Participant to any account, benefit or payment hereunder will
        not,
        to the extent permitted by law, be subject in any manner to attachment or
        other
        legal process for the debts of that Participant; and no account, benefit
        or
        payment will be subject to anticipation, alienation, sale, transfer, assignment
        or encumbrance except by will, by the laws of descent and distribution, or
        by a
        Participant election to satisfy a property settlement agreement pursuant
        to a
        divorce. 

      9.  Effect
        of Change of Control. 
        In the
        event of a Change of Control of the Company, the entire unpaid balance of
        the
        Deferred Account shall be paid in a lump sum to the Participant as of the
        effective date of the Change of Control. Change of Control shall mean the
        first
        to occur of any of the following events:

      (a)  any
        "person" as such term is used in Sections 13(d) and 14(d) of the Securities
        Exchange Act of 1934 (the “1934 Act”), (other than (i) the Company,
        (ii) any subsidiary of the Company, (iii) any trustee or other
        fiduciary holding securities under an employee benefit plan of the Company
        or of
        any subsidiary of the Company, or (iv) any company owned, directly or
        indirectly, by the stockholders of the Company in substantially the same
        proportions as their ownership of stock of the Company), is or becomes the
        "beneficial owner" (as defined in Section 13(d) of the 1934 Act), together
        with
        all Affiliates and Associates (as such terms are used in Rule 12b-2 of the
        General Rules and Regulations under the 1934 Act) of such person, directly
        or
        indirectly, of securities of the Company representing 

       

      
        
          
          

        

        
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              thirty
          percent (30%) or more of
          the combined voting power of the Company's then outstanding securities;
          or

      

      (b)  the
        stockholders of the Company approve a merger or consolidation of the Company
        with any other company, other than (i) a merger or consolidation which
        would result in the voting securities of the Company outstanding immediately
        prior thereto continuing to represent (either by remaining outstanding or
        by
        being converted into voting securities of the surviving entity), in combination
        with the ownership of any trustee or other fiduciary holding securities under
        an
        employee benefit plan of the Company or any subsidiary of the Company, at
        least
        sixty percent (60%) of the combined voting power of the voting securities
        of the
        Company or such surviving entity outstanding immediately after such merger
        or
        consolidation or (ii) a merger or consolidation effected to implement a
        recapitalization of the Company (or similar transaction) after which no "person"
        (with the method of determining "beneficial ownership" used in clause
        (a) of this definition) owns more than thirty percent (30%) of the combined
        voting power of the securities of the Company or the surviving entity of
        such
        merger or consolidation; or

      (c)  during
        any period of two (2) consecutive years (not including any period prior to
        the
        execution of the Plan), individuals who at the beginning of such period
        constitute the Board, and any new Director (other than a Director designated
        by
        a person who has conducted or threatened a proxy contest, or has entered
        into an
        agreement with the 

       

      
        
          
          

        

        
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Company
          to effect a transaction described in clause (a), (b) or (d) of this
          definition) whose election by the Board or nomination for election by the
          Company's stockholders was approved by a vote of at least two-thirds (2/3)
          of
          the Directors then still in office who either were Directors at the beginning
          of
          the period or whose election or nomination for election was previously
          so
          approved cease for any reason to constitute at least a majority thereof;
          or

      

      (d)  the
        stockholders of the Company approve a plan of complete liquidation of the
        Company or an agreement for the sale or disposition by the Company of all
        or
        substantially all of the Company's assets.

      10.  Unsecured
        Obligation.
        The
        obligation of the Company to make distributions of amounts credited to the
        Participant’s Deferred Account shall be a general obligation of the Company, and
        such distribution shall be made only from general assets and property of
        the
        Company in shares of common stock of the Company. The Participant’s relationship
        to the Company under the Plan shall be only that of a general unsecured creditor
        and neither this Plan, nor any agreement entered into hereunder, or action
        taken
        pursuant hereto shall create or be construed to create a trust for purposes
        of
        holding and investing the Deferred Account balances. The Company reserves
        the
        right to establish such a trust, but such establishment shall not create
        any
        rights in or against any amounts held thereunder. 

      11.  Amendment
        or Termination.
        The
        Board of Directors of the Company may amend or terminate this Plan at any
        time
        and from time to time. Any amendment or termination 

       

      
        
          
          

        

        
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of
          this
          Plan will not affect the rights of a Participant accrued prior thereto
          without
          that Participant’s written consent.

      

      12.  Taxes.
        The
        Company is not responsible for the tax consequences under federal, state
        or
        local law of any election made by any Participant under the Plan. All payments
        under the Plan are subject to withholding and reporting requirements to the
        extent required by applicable law.

      13.  No
        Right to Continued Membership on the Board.
        Nothing
        in this Plan confers upon any director any right to continue as a director
        of
        the Company or interferes with the rights of the Company and its shareholders,
        which are hereby expressly reserved to remove any director at any time for
        any
        reason whatsoever, with or without cause.

      14.  Applicable
        Law.
        This
        Plan is governed under the laws of the State of Illinois.

      

      

      IN
        WITNESS WHEREOF, the Company has caused this Plan to be executed by its
        President and Chief Executive Officer as of this 26th day of September,
        2006.

       

                              CABOT
        MICROELECTRONICS CORPORATION

       

                              By: 
/s/
        William
        P. Noglows

       

      

       

      

       

       

      

      
        
          
          

        

        
          10Exhibit 10.49

    Exhibit 10.49

     

    ***
      Text Omitted and Filed Separately with
      the Securities and Exchange Commission.

    Confidential
      Treatment Requested Under 17C.F.R.
      Sections 200.80(b)(4) and 240.24b-2

    
      

      

      

      

      AMENDMENT
        NO. 1 TO

      FUMED
        SILICA SUPPLY AGREEMENT

      

      This
        Amendment No. 1 to Fumed Silica Supply Agreement (this “Amendment”) is made and
        executed as of September 29, 2006 (the “Effective Date”) by and between Cabot
        Corporation, a Delaware corporation (“Cabot”), and Cabot Microelectronics
        Corporation, a Delaware corporation (“CMC”), and supplements and amends the
        FUMED SILICA SUPPLY AGREEMENT executed on January 16, 2004 (the “Original
        Agreement” and, as amended hereby, the “Agreement”) between Cabot and CMC.
        Capitalized terms used herein without definition and defined in the Original
        Agreement shall have the same meanings as defined in the Original Agreement.
        Cabot and CMC are each referred to from time to time in the Original Agreement
        and herein as a “Party” and, together, the “Parties.”

      

      RECITALS

      

      WHEREAS,
        CMC and Cabot agree that [***] is beneficial to the [***] of Fumed Silica
        purchased by CMC from Cabot pursuant to the Original Agreement.

      

            WHEREAS,
        CMC and Cabot agree that the capability for [***] should be installed on
        Cabot’s
        Tuscola A unit, Tuscola B unit and Barry B unit 

          where Fumed Silica supplied to CMC
        is manufactured.

      

      WHEREAS,
        CMC and Cabot entered into a Letter of Agreement dated as of February 15,
        2006
        (the “Letter of Agreement”) regarding the Parties’ intent with respect to
        [***].

      

      WHEREAS,
        CMC and Cabot wish to amend the Original Agreement to, among other things,
        include the Parties’ agreement as to the [***] and the payment for such
        [***].

      

      NOW
        THEREFORE, the Parties do hereby agree as follows:

       

      	1.  	
              Cabot
                has installed on Tuscola A unit a [***] (“TU-A Temporary System”). The
                TU-A Temporary System has been in operation since late April 2006
                for
                [***] production. However, the TU-A Temporary System has been used
                in a
                mode in which [***]. The result is that the [***] and the full anticipated
                benefit of the system has not been realized. When the [***], the
                system is
                said to be operated in [***] mode. Once a permanent system has been
                installed and put into operation at the Tuscola A Unit in accordance
                with
                the terms of this Amendment, the TU-A Temporary System will be
                decommissioned and the associated rented equipment
                returned.

            

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      	2.  	
              (a)
                At CMC’s request, Cabot is in the process of evaluating the feasibility
                of
                a [***] for use at the Tuscola A Unit and the Barry B Unit. If Cabot
                reasonably and in good faith determines that such a [***] is not
                feasible,
                then a [***] shall be selected by the Parties for use at Tuscola
                A Unit
                and Barry B Unit. On or before December 15, 2006, Cabot will give
                written
                notice to CMC whether it will be feasible to install and operate
                a [***]
                and if not, Cabot will provide a written description of the reasons
                and
                basis therefor. The system selected to [***] at the Tuscola A Unit
                and
                Barry B Unit, either the [***] shall be referred to herein as the
“TU-A
                Permanent System”, and the “BA-B Permanent System”, respectively. Cabot
                shall not initiate final design and construction of the TU-A Permanent
                System or BA-B Permanent System until each of the following conditions
                (the “Permanent Process Conditions”) have been met: (i) Cabot has received
                CMC’s written approval to proceed with the detailed design and
                installation of the TU-A Permanent System and the BA-B Permanent
                System
                (which approval shall not be unreasonably withheld or delayed); (ii)
                at
                least [***] of CMC’s orders for a period of at least one month for [***]
                to be produced at Tuscola A unit are for [***] and (iii) either (x)
                CMC
                shall approve in writing a Supplier Process Change Notification for
                production of [***] using the TU-A Permanent System and the BA-B
                Permanent
                System, respectively (which Permanent Systems shall, at the election
                of
                CMC, be run [***] or, (y) the Parties reach a mutually satisfactory
                alternative agreement with respect to the production of [***] on
                the
                Tuscola A Unit and Barry B unit. Upon satisfaction of each of the
                Permanent Process Conditions, Cabot will promptly thereafter proceed
                with
                the final design, construction, installation and operation of the
                TU-A
                Permanent System and the BA-B Permanent System. All design, engineering,
                capital, installation and operation costs relating to the operation
                of
                TU-A Permanent System (“TU-A Permanent Expenses”) and the BA-B Permanent
                System (“BA-B Permanent Expenses”) shall be at Cabot's expense.
                

            

       

      (b)
        If
        any Permanent Process Condition is not satisfied prior to December 31, 2006,
        then from and after January 1, 2007 Cabot will continue to operate the TU-A
        Temporary System until the Permanent Process Conditions have been satisfied,
        or
        CMC directs Cabot, on thirty (30) days notice, to decommission the TU-A
        Temporary System and return the rented equipment.

       

      	3.  	
              Cabot
                will pay for the TU-A Temporary System [***] costs. Cabot will pay
                for the
                TU-A Temporary System [***] costs, including but not limited to [***]
                (collectively, the TU-A [***] Costs”). Notwithstanding the foregoing, if
                the Permanent Process Conditions have not been satisfied by December
                31,
                2006, CMC will pay documented, actual TU-A [***] Costs reasonably
                incurred
                for the period of time beginning January 1, 2007 until the earlier
                of the
                date the Permanent Process Conditions have been satisfied, or the
                date the
                TU-A Temporary System is decommissioned and the rented equipment
                returned.
                

            

       

      4. Cabot
        will install and operate [***] (“TU-B Temporary System”). At CMC’s election, the
        TU-B Temporary Expenses (as hereinafter defined) may be included in the Cabot
        CI
        Cap in Term Year 3 and Term Year 4, and expenses incurred in Term Year 3
        in
        excess of the Cabot CI Cap for such Term Year may be carried forward into
        the
        Cabot CI Cap for Term Year 4. To the extent such expenses are not included
        in
        the Cabot CI Cap in such Term Years, CMC will reimburse Cabot for such expenses
        in accordance with the provisions of the Agreement. “TU-B Temporary Expenses”
shall mean all [***] in connection with the TU-Temporary System, including
        but
        not limited to, [***]. If CMC desires [***] of the TU-B Temporary System,
        all
        costs associated with such [***] shall be at CMC’s expense. The TU-B Temporary
        System shall remain operational until CMC has given Cabot at least thirty
        (30)
        days written notice that CMC will no longer require the product from that
        line.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      5. Effective
        as of the first day of Term Year 4, Section 2.3(a)(ii) of the Original Agreement
        shall be amended and restated in its entirety as follows:

      

      “(ii)
        the
        maximum annual volume of Fumed Silica from Cabot’s Barry, Wales facility (the
“Barry Plant”) shall be [***] pounds per Term Year. In addition to the
        foregoing, the maximum monthly volume of Fumed Silica from the Barry Plant
        shall
        be [***] pounds per month provided that the total of such monthly volumes
        does
        not exceed [***] pounds per Term Year from the Barry Plant.”

       

      6. Effective
        as of the first day of Term Year 4, Section 2.4 of the Original Agreement
        shall
        be amended and restated in
        its
        entirety as follows:

       

      “2.4
        Minimum
        Volumes.
        

       

      (a) CMC
        shall
        be obligated to purchase from Cabot, during each six month period covered
        by a
        Six Month Forecast (each, a “Six Month Forecast Period”), a “Minimum Volume,”
meaning at least 90% of the aggregate volumes of Fumed Silica forecasted
        to be
        purchased by CMC as set forth in such Six Month Forecast; provided however,
        that
        if CMC fails to meet the Barry Minimum Volume (as defined in Section 2.4(b)
        below) during any Six Month Forecast Period and CMC is required to pay
        compensation under Section 2.4(b) below in connection with such Barry Shortfall
        (as defined in Section 2.4(b) below), then the Barry Shortfall shall be
        subtracted from the applicable Minimum Volume for the purposes of the liquidated
        damages calculation set forth below in this Section 2.4(a)(i)(x) for such
        Six
        Month Forecast Period. Cabot and CMC recognize that damages for CMC’s failure to
        purchase the Minimum Volumes
        would be difficult to ascertain and prove. Cabot and CMC agree that if, during
        any Six Month Forecast Period, CMC fails to purchase from Cabot the Minimum
        Volume of Fumed Silica for such Six Month Forecast Period, CMC shall pay
        to
        Cabot liquidated damages in an amount equal to the product obtained by
        multiplying:

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      (i) the
        difference (in pounds) between the (x) the applicable Minimum Volume and
        (y) the
        amount of Fumed Silica actually purchased by CMC during the relevant Six
        Month
        Forecast Period; times 

       

      (ii) $1.35.

       

      (b)
        CMC
        will order from Cabot a minimum of [***]
        pounds
        (“Barry Minimum Volume”) of Fumed Silica from Barry B unit (“Barry B Fumed
        Silica”) during each Six Month Forecast Period during Term Year 4, Term Year 5
        and Term Year 6. For the purposes of this Section 2.4, all Fumed Silica ordered
        by CMC shall be counted in the Six Month Forecast Period ordered, and actual
        order quantities shall be calculated from quantities invoiced to CMC, even
        if
        such Fumed Silica is not shipped, delivered or invoiced to CMC until the
        following Six Month Forecast Period. In the event that in any Six Month Forecast
        Period during Term Year 4, Term Year 5 or Term Year 6 CMC does not order
        the
        Barry Minimum Volume (the difference, in pounds, between such Barry Minimum
        Volume, and the aggregate volume of Barry B Fumed Silica ordered by CMC in
        any
        such Six Month Forecast Period (to the extent less than the Barry Minimum
        Volume) is referred to herein as the “Barry Shortfall”), then subject to the
        provisions of Section 2.4(c) below, CMC will pay Cabot the following amounts
        for
        any such Six Month Forecast Period in which the Barry Minimum Volume is not
        met:

      

      (i)
        In
        any Six Month Forecast Period during Term Year 4, Term Year 5, or Term Year
        6
        where CMC orders Barry B Fumed Silica in an aggregate volume greater than
        or
        equal to [***] pounds, but less than or equal to the Barry Minimum Volume,
        CMC
        will pay Cabot the amount equal to [***], multiplied by the Barry Shortfall
        during the applicable Six Month Forecast Period, divided by [***], or [***]
        x
        ((Barry Shortfall)/[***].

      

      (ii)
        In
        any Six Month Forecast Period during Term Year 4, Term Year 5, or Term Year
        6
        where CMC orders Barry B Fumed Silica in an aggregate volume of less than
        [***]
        pounds, CMC will pay Cabot flat-rate compensation of [***] for such Six Month
        Forecast Period.

       

      Within
        thirty (30) days of the end of each such Six Month Forecast Period, Cabot
        shall
        invoice CMC for any compensation payable by CMC under this Section 2.4(b)
        for such
        period, and CMC shall pay such invoiced amounts to Cabot within thirty (30)
        days
        following its receipt of Cabot’s invoice.

       

      (c)
        Cabot
        agrees that it shall supply 100% of CMC’s actual orders (up to [***]) for each
        month for Barry B Unit Fumed Silica (collectively, “Cabot’s Barry Supply
        Obligation”). If, in any period, Cabot fails to produce or allocate to CMC Fumed
        Silica volumes sufficient to meet Cabot’s Barry Supply Obligation for such
        period for any reason (other than force majeure as set forth in Section 12.10
        below, excluding volume shortfall due to Cabot’s suppliers), then, for the
        purposes of calculating the compensation due Cabot pursuant to Section 2.4(b)
        above, the Barry Minimum Volume shall be reduced by the amount of such shortfall
        on a cumulative pound for pound basis. If Cabot is unable and/or has otherwise
        failed to supply 100% of CMC’s monthly orders (up to [***]) for Barry B Fumed
        Silica for each of three (3) consecutive calendar months, then CMC shall
        not be
        required to pay the compensation to Cabot specified in Section 2.4(b) for
        the
        then current Term Year at the conclusion of such three month period.

       

      (d) Cabot
        and
        CMC agree that the liquidated damages set forth in Sections 2.4(a) and 2.4(b)
        above is the sole and exclusive remedy for CMC’s failure to purchase the Minimum
        Volumes and the Barry Minimum Volumes. Cabot and CMC further agree that such
        liquidated damages represent a reasonable estimate of the Cabot’s damages and do
        not constitute a penalty.” 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      7. The
        third
        sentence of Section 6.1 of the Original Agreement is hereby amended and restated
        in its entirety as follows:

       

      “For
        purposes of applying Sections 2.3 and 2.4(a) only, each volume of Fumed Silica
        shall be deemed to be in the month specified for its shipment in CMC’s order;
        and if no date is specified, then in the month following the month in which
        the
        order therefor is issued by CMC.”

       

      8. Notwithstanding
        anything in the Original Agreement to the contrary, by way of clarification
        and
        not limitation, the TU-A Permanent Expenses and BA-B Permanent Expenses shall
        be
        for the sole account of Cabot in all respects during all Term Years, and
        shall
        be separate from, and not be credited toward, the Cabot CI Cap in any Term
        Year.

       

      9. Except
        as
        amended hereby, the Original Agreement is ratified and confirmed in all
        respects. This Amendment shall take effect as of the Effective Date, except
        that
        the amendments contained herein to Sections 2.3 and 2.4 of the Original
        Agreement shall not take effect until the first day of Term Year 4. It is
        the
        express intent of the parties that the Original Agreement, as amended by
        this
        Amendment No. 1, expresses the Parties’ further agreement regarding the [***]
        and supersedes the Letter of Agreement, and the Letter of Agreement shall
        have
        no further effect from and after the execution hereof. Cabot shall credit
        CMC
        for all amounts relating to the TU-A Temporary System invoiced by Cabot or
        paid
        by CMC in connection with the Letter of Agreement.

       

      (Signature
        Page Follows)

       

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      IN
        WITNESS WHEREOF, the parties hereto have caused this Amendment No. 1 to be
        executed and delivered by their respective duly authorized representatives
        as of
        the date first set forth above.

      

      CABOT
        CORPORATION

       

      By
/s/
        Ravijit
        Paintal                             

      Duly
        Authorized

      Name: 
        Ravijit Paintal

      Title: 
        VP and GM, FMO and Aerogel

       

       

      CABOT
        MICROELECTRONICS CORPORATION

      

      By
/s/
        Adam
        Weisman                       

      Duly
        Authorized

      Name: 
        Adam Weisman

      Title: 
        VP Business Operations

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