Document:

EX-10.1

 Exhibit 10.1 

EXECUTION VERSION 
  

 
  

EIGHTH AMENDMENT 
 TO

 AMENDED AND RESTATED CREDIT AGREEMENT 

Dated as of April 21, 2015 

Among 
 PARSLEY ENERGY,
L.P., 
 as Borrower, 

PARSLEY ENERGY MANAGEMENT, LLC, 

as General Partner, 

PARSLEY ENERGY, INC., 

as PEI, 
 PARSLEY ENERGY,
LLC, 
 as Parent, 

WELLS FARGO BANK, NATIONAL ASSOCIATION, 

as Administrative Agent, 

JPMORGAN CHASE BANK, N.A., 

as Syndication Agent, 

BMO HARRIS BANK, N.A., 

as Documentation Agent, 

and 
 The Lenders Party
Thereto 
  
  

WELLS FARGO SECURITIES, LLC 

Sole Lead Arranger and Sole Bookrunner 
  

 
  

 
  

 EIGHTH AMENDMENT TO 

AMENDED AND RESTATED CREDIT AGREEMENT 

THIS EIGHTH AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT (this “Eighth Amendment”) dated as of April 21,
2015, is among Parsley Energy, L.P., a limited partnership duly formed and existing under the laws of the state of Texas (the “Borrower”); Parsley Energy Management, LLC, a Texas limited liability company (the “General
Partner”); Parsley Energy, LLC, a Delaware limited liability company (the “Parent”); Parsley Energy, Inc., a Delaware corporation (“PEI”), each of the undersigned guarantors (the
“Guarantors”, and together with the Borrower, the General Partner and the Parent, the “Obligors”); each of the Lenders party hereto; and Wells Fargo Bank, National Association (in its individual capacity,
“Wells Fargo”), as administrative agent for the Lenders (in such capacity, together with its successors in such capacity, the “Administrative Agent”). 

R E C I T A L S 

A. The Borrower, the General Partner, the Parent, the Administrative Agent and the Lenders are parties to that certain Amended and Restated
Credit Agreement dated as of October 21, 2013 (as amended by the First Amendment to Amended and Restated Credit Agreement dated December 20, 2013, the Second Amendment to Amended and Restated Credit Agreement dated February 5, 2014,
the Third Amendment to Amended and Restated Credit Agreement dated April 15, 2014, the Fourth Amendment to Amended and Restated Credit Agreement dated May 2, 2014, the Fifth Amendment to Amended and Restated Credit Agreement dated
May 9, 2014, the Sixth Amendment to Amended and Restated Credit Agreement dated September 5, 2014 and the Seventh Amendment to Amended and Restated Credit Agreement dated November 10, 2014, the “Credit Agreement”),
pursuant to which the Lenders have made certain credit available to and on behalf of the Borrower. 
 B. Operations desires to acquire
approximately 63% of all of the outstanding Equity Interests in Pacesetter Drilling, LLC, a Texas limited liability company and has requested the Administrative Agent’s and the Lenders’ consent to certain amendments to the Credit Agreement
in connection therewith. 
 C. The Borrower has requested and the Administrative Agent and the Lenders party hereto have agreed to amend the
Credit Agreement, subject to the terms and conditions of this Eighth Amendment. 
 D. NOW, THEREFORE, to induce the Administrative Agent and
the Lenders to enter into this Eighth Amendment and in consideration of the premises and the mutual covenants herein contained, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows: 
 Section 1. Defined Terms. Each capitalized term used herein but not otherwise defined herein has the
meaning given such term in the Credit Agreement, as amended by this Eighth Amendment (unless otherwise indicated). Unless otherwise indicated, all section references in this Eighth Amendment refer to sections of the Credit Agreement. 

  
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 Section 2. Amendments to Credit Agreement. 

2.1 Amendments to Section 1.02 – Certain Defined Terms. 

(a) Clause (a) of the definition of “Consolidated Net Income” is hereby amended and restated in its entirety to read as
follows: 
 (a) the net income of (i) so long as Operations does not own, of record and directly, 100% of the aggregate
ordinary voting power represented by the issued and outstanding Equity Interests of Pacesetter, Pacesetter and (ii) any Person in which the Borrower or any Consolidated Subsidiary has an interest (which interest does not cause the net income of
such other Person to be consolidated with the net income of the Borrower and the Consolidated Subsidiaries in accordance with GAAP), except, in the case of each of the foregoing clauses (i) and (ii), to the extent of the amount of dividends or
distributions actually paid in cash during such period by Pacesetter or such other Person to the Borrower or to a Consolidated Subsidiary, as the case may be; 

(b) The following definitions are hereby amended and restated in their entirety to read as follows: 

“Aggregate Elected Borrowing Base Commitments” means (a) on the Eighth Amendment Effective Date,
$500,000,000, and (b) at any time thereafter, an amount determined in accordance with Section 2.07(g). 

“Subsidiary” means any subsidiary of the Parent (including the Borrower); provided that (a) when
used in reference to the Borrower, such as “any Subsidiary of the Borrower”, “the Borrower and its Subsidiaries”, “the Borrower, for itself and for each of its Subsidiaries” or words of similar construction, the term
“Subsidiary” shall mean a subsidiary of the Borrower, (b) when used in reference to the General Partner, such as “any Subsidiary of the General Partner”, “the General Partner and its Subsidiaries”, “the
General Partner, for itself and for each of its Subsidiaries” or words of similar construction, the term “Subsidiary” shall mean a subsidiary of the Parent and (c) so long as Operations does not own, of record and directly, 100%
of the aggregate ordinary voting power represented by the issued and outstanding Equity Interests of Pacesetter, then Pacesetter and its subsidiaries shall be deemed not to be Subsidiaries of the Parent or the Borrower except for purposes of
Section 7.06, Section 7.09, Section 7.10, Section 7.21, Section 7.24, Section 8.09, Section 8.14, Section 9.09, Section 9.13 and Section 12.03(b). 

(c) The following definitions are hereby added where alphabetically appropriate to read as follows: 

“Eighth Amendment” means that certain Eighth Amendment to Amended and Restated Credit Agreement, dated as of
April 21, 2015, among the Borrower, the General Partner, the Parent, PEI, the Guarantors, the Administrative Agent and the Lenders party thereto. 

  
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 “Eighth Amendment Effective Date” has the meaning given such
term in the Eighth Amendment. 
 “Pacesetter” means Pacesetter Drilling, LLC, a Texas limited liability
company. 
 2.2 Amendment to Section 2.07(e). Section 2.07(e) is hereby amended and restated in its entirety
to read as follows: 
 (e) Reduction of Borrowing Base Related to Swap Agreements. If any Swap Agreement to which the
Borrower or any Subsidiary is a party is Liquidated between two successive Scheduled Redetermination Dates and the Borrowing Base value assigned to the Liquidated portion of such Swap Agreements, when combined with (i) the fair market value of
any Disposition of Oil and Gas Properties included in the most recently delivered Reserve Report or Subsidiaries owning Oil and Gas Properties included in the most recently delivered Reserve Report, in each case, during the period between such
successive Scheduled Redetermination Dates and (ii) the Borrowing Base value of the Liquidated portion of other Swap Agreements Liquidated during the period between such successive Scheduled Redetermination Dates, exceeds five percent
(5%) of the Borrowing Base as then in effect (as determined by the Administrative Agent), individually or in the aggregate, the Borrowing Base then in effect shall be reduced by an amount equal to the value, if any, assigned to the Liquidated
portion of such Swap Agreement in the then effective Borrowing Base (after giving effect to any replacement Swap Agreements executed within three Business Days of such Liquidation), as determined by the Administrative Agent. 

2.3 Amendment to Section 8.13. Section 8.13 is hereby amended by adding a new subsection (e) at the end
of Section 8.13 to read as follows: 
 (e) In connection with each Investment made by Operations in Pacesetter pursuant
to Section 9.05(l), the Parent shall cause Operations to promptly deliver to the Administrative Agent (but in any event no later than 10 Business Days following each such Investment) (i) a duly executed Supplement (as defined in the
Guaranty Agreement) pledging the Equity Interests issued by Pacesetter acquired by Operations as a result of such Investment, as applicable, and (ii) original stock certificates evidencing such Equity Interests, together with an appropriate
undated stock powers for each certificate duly executed in blank by Operations, if applicable. 
 2.4 Amendment to
Section 9.05. Section 9.05 is hereby amended by (i) deleting “; or” at the end of clause (j) of such Section 9.05, (ii) deleting “.” at the end of clause (k) of such Section 9.05 and
(iii) adding a new clause (l) to the end of Section 9.05 to read as follows: 
 (l) Investments made by
Operations in Pacesetter in an aggregate amount not to exceed $10,000,000. 

  
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 2.5 Amendment to Section 9.12(d)(iii). Section 9.12(d)(iii) is
hereby amended and restated in its entirety to read as follows: 
 (iii) if such Disposition of Oil and Gas Property included
in the most recently delivered Reserve Report or Subsidiary owning Oil and Gas Properties included in the most recently delivered Reserve Report, in each case, during any period between two successive Scheduled Redetermination Dates, when combined
with the Borrowing Base value attributable to the Liquidated portion of Swap Agreements Liquidated between such successive Scheduled Redetermination Dates (after giving effect to any replacement Swap Agreements executed within three Business Days of
such Liquidation), has a fair market value in excess of five percent (5%) of the Borrowing Base as then in effect (as determined by the Administrative Agent), individually or in the aggregate, the Borrowing Base shall be reduced, effective
immediately upon such Disposition, by an amount equal to the value, if any, assigned such Property in the most recently delivered Reserve Report and 

2.6 Amendment to Section 9.12(g). Section 9.12(g) is hereby amended and restated in its entirety to read as
follows: 
 (g)(i) Dispositions permitted under Section 9.10, (ii) Liens permitted under Section 9.03,
(iii) Restricted Payments permitted under Section 9.04 and (iv) Investments permitted under Section 9.05; provided that, notwithstanding the foregoing, any Disposition of any Oil and Gas Property or interest therein or any
Subsidiary owning Oil and Gas Properties in connection with the foregoing clauses (g)(iii)-(iv) shall also be subject to, and constitute a Disposition regulated by, Section 9.12(d); 

Section 3. New Lender; Assignments and Reallocation of Commitments and Loans; Borrowing Base Decrease. 

3.1 New Lender; Assignments and Reallocation of Commitments and Loans. Each Lender party to the Credit Agreement
immediately prior to the Eighth Amendment Effective Date (used herein as defined below) (the “Existing Lenders”) has, in consultation with the Borrower, agreed to reallocate its respective Maximum Credit Amount and Commitment and
to, among other things, allow each of U.S. Bank National Association, The Bank of Nova Scotia and Compass Bank to become a party to the Credit Agreement as a Lender (each, a “New Lender”) by acquiring an interest in the total
Maximum Credit Amounts and Commitments. The Administrative Agent and the Borrower hereby consent to such reallocation and each New Lender’s acquisition of an interest in the Maximum Credit Amounts and Commitments and the Existing Lenders’
assignment of its Commitments to the extent effected by the reallocation contemplated hereby. On the Eighth Amendment Effective Date, and after giving effect to such reallocations, (a) the Maximum Credit Amount and Commitment of each Lender
(including each New Lender) shall be as set forth on Annex I of this Eighth Amendment, which Annex I supersedes and replaces Annex I to the Credit Agreement and (b) each 

  
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New Lender shall become a party to the Credit Agreement, as amended by this Eighth Amendment, as a “Lender” and shall have all of the rights and obligations of a Lender under the Credit
Agreement, as amended by this Eighth Amendment, and the other Loan Documents. With respect to such reallocation, each Lender (including each New Lender) shall be deemed to have acquired the Maximum Credit Amount and Commitment allocated to it from
each of the other Lenders pursuant to the terms of an Assignment and Assumption as if the Lenders had executed an Assignment and Assumption with respect to such allocation. On the Eighth Amendment Effective Date, the Administrative Agent shall take
the actions specified in Section 12.04(b)(v), including recording the assignments described herein in the Register, and such assignments shall be effective for purposes of the Credit Agreement. Notwithstanding Section 12.04(b)(ii)(C), no
Person shall be required to pay a processing and recordation fee of $3,500 to the Administrative Agent in connection with such assignments. If on the Eighth Amendment Effective Date, any Eurodollar Loans have been funded, then the Borrower shall be
obligated to pay any breakage fees or costs that are payable pursuant to Section 5.02 in connection with the reallocation of such outstanding Eurodollar Loans to effectuate the provisions of this paragraph. 

3.2 Borrowing Base Decrease. For the period from and including the Eighth Amendment Effective Date to but excluding the
next Redetermination Date, the amount of the Borrowing Base shall be equal to $500,000,000. Notwithstanding the foregoing, the Borrowing Base may be subject to further adjustments from time to time pursuant to Sections 2.07(e), 2.07(f), 8.12(c) or
9.12(d). For the avoidance of any doubt, this Borrowing Base increase shall constitute the April 1, 2015 Scheduled Redetermination. 

3.3 Aggregate Elected Borrowing Base Commitments Increase. With respect to the increase of the Aggregate Elected
Borrowing Base Commitments and to the reallocation of Commitments pursuant to Section 3.1 of this Eighth Amendment, the Borrower shall be deemed to have delivered an Increase Notice as required pursuant to Section 2.07(g)(ii)(A) and each
Lender (including each New Lender) shall be deemed to have delivered a Lender Certificate required pursuant to Section 2.07(g)(ii)(B). Annex I of this Eighth Amendment shall satisfy the requirements of the Administrative Agent to distribute a
revised Annex I pursuant to Section 2.07(g)(ii)(C). 
 Section 4. Conditions of Effectiveness. This Eighth Amendment will
become effective on the date on which each of the following conditions precedent are satisfied or waived (the “Eighth Amendment Effective Date”): 

(a) The Administrative Agent shall have received from PEI, the Borrower, the General Partner, the Parent, each other Obligor and the Lenders,
counterparts (in such number as may be requested by the Administrative Agent) of this Eighth Amendment signed on behalf of such Person. 

(b) The Administrative Agent and the Lenders shall have received all fees and other amounts due and payable on or prior to the Eighth
Amendment Effective Date, including, to the extent invoiced, reimbursement or payment of all out-of-pocket expenses required to be reimbursed or paid by the Borrower pursuant to the Credit Agreement (including, to the extent invoiced on or prior to
the Eighth Amendment Effective Date, the fees and expenses of Paul Hastings LLP, counsel to the Administrative Agent). 

  
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 (c) No Default or Event of Default shall have occurred and be continuing as of the Eighth
Amendment Effective Date. 
 (d) The Administrative Agent shall have received, together with title information previously delivered to the
Administrative Agent, satisfactory title information on at least 80% of the total value of the Oil and Gas Properties of the Borrower and the Subsidiaries evaluated by the most recently delivered Reserve Report. 

(e) The Administrative Agent shall have received duly executed and notarized deeds of trust and/or mortgages or supplements to existing deeds
of trust and/or mortgages in form satisfactory to the Administrative Agent, to the extent necessary so that the Mortgaged Properties represent at least 80% of the total value of the Oil and Gas Properties of the Borrower and the Subsidiaries
evaluated by the most recently delivered Reserve Report. 
 (f) The Administrative Agent shall have received duly executed Notes payable to
U.S. Bank National Association, The Bank of Nova Scotia and Compass Bank to the extent requested by such Lender, in a principal amount equal to the applicable new Maximum Credit Amount of such Lender, dated as of Eighth Amendment Effective Date.

 (g) The Administrative Agent shall have received such other documents as the Administrative Agent or its special counsel may reasonably
require. 
 The Administrative Agent is hereby authorized and directed to declare this Eighth Amendment to be effective when it has received
documents confirming compliance with the conditions set forth in this Section 4 or the waiver of such conditions as agreed to by the Majority Lenders. Such declaration shall be final, conclusive and binding upon all parties to the Credit
Agreement for all purposes. 
 Section 5. Miscellaneous. 

(a) Confirmation. The provisions of the Credit Agreement, as amended by this Eighth Amendment, shall remain in full force and effect
following the effectiveness of this Eighth Amendment. 
 (b) Ratification and Affirmation; Representations and Warranties. Each of
PEI and each Obligor hereby: (a) acknowledges the terms of this Eighth Amendment; (b) ratifies and affirms its obligations under, and acknowledges, renews and extends its continued liability under, each Loan Document to which it is a party
and agrees that each Loan Document to which it is a party remains in full force and effect, except as expressly amended hereby; (c) agrees that from and after the Eighth Amendment Effective Date each reference to the Credit Agreement in the
other Loan Documents shall be deemed to be a reference to the Credit Agreement, as amended by this Eighth Amendment; and (d) represents and warrants to the Lenders that as of the date hereof, after giving effect to the terms of this Eighth
Amendment: (i) all of the representations and warranties contained in each Loan Document to which it is a party are true and correct in all material respects (except that any representation and warranty that is qualified

  
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by materiality shall be true and correct in all respects), except to the extent any such representations and warranties are expressly limited to an earlier date, in which case, such
representations and warranties shall continue to be true and correct in all material respects (except that any representation and warranty that is qualified by materiality shall be true and correct in all respects) as of such specified earlier date,
(ii) no Default or Event of Default has occurred and is continuing and (iii) no event, development or circumstance has occurred or exists that has resulted in, or could reasonably be expected to have, a Material Adverse Effect. 

(c) Counterparts. This Eighth Amendment may be executed by one or more of the parties hereto in any number of separate counterparts,
and all of such counterparts taken together shall be deemed to constitute one and the same instrument. Delivery of an executed counterpart of a signature page of this Eighth Amendment by telecopy, facsimile, as an attachment to an email or other
similar electronic means shall be effective as delivery of a manually executed counterpart of this Eighth Amendment. 
 (d) NO ORAL
AGREEMENT. THIS EIGHTH AMENDMENT, THE CREDIT AGREEMENT AND THE OTHER LOAN DOCUMENTS EXECUTED IN CONNECTION HEREWITH AND THEREWITH REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR,
CONTEMPORANEOUS, OR UNWRITTEN ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO SUBSEQUENT ORAL AGREEMENTS BETWEEN THE PARTIES. 
 (e)
GOVERNING LAW. THIS EIGHTH AMENDMENT (INCLUDING, BUT NOT LIMITED TO, THE VALIDITY AND ENFORCEABILITY HEREOF) SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF TEXAS. 

(f) Loan Document. This Eighth Amendment is a “Loan Document” as defined and described in the Credit Agreement and all of the
terms and provisions of the Credit Agreement relating to Loan Documents shall apply hereto. 
 (g) Payment of Expenses. In accordance
with Section 12.03, the Borrower agrees to pay or reimburse the Administrative Agent for all of its reasonable and documented out-of-pocket costs and expenses incurred in connection with this Eighth Amendment, any other documents prepared in
connection herewith and the transactions contemplated hereby, including, without limitation, the reasonable fees and disbursements of counsel to the Administrative Agent. 

(h) Severability. Any provision of this Eighth Amendment which is prohibited or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable
such provision in any other jurisdiction. 
 (i) Successors and Assigns. This Eighth Amendment shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and assigns. 

  
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 [Signature Pages Follow] 

  
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 IN WITNESS WHEREOF, the parties hereto have caused this Eighth Amendment to be duly executed and
delivered by their proper and duly authorized officer(s) as of the day and year first above written. 
  

					
	BORROWER:		PARSLEY ENERGY, L.P.
			
			By:		PARSLEY ENERGY MANAGEMENT, LLC,
					its general partner
			
			By:		 /s/ Bryan Sheffield

			Name:		Bryan Sheffield
			Title:		President
		
	GENERAL PARTNER:		PARSLEY ENERGY MANAGEMENT, LLC
			
			By:		 /s/ Bryan Sheffield

			Name:		Bryan Sheffield
			Title:		President
		
	PARENT:		PARSLEY ENERGY, LLC
			
			By:		 /s/ Bryan Sheffield

			Name:		Bryan Sheffield
			Title:		President
		
	PEI:		PARSLEY ENERGY, INC.
			
			By:		 /s/ Bryan Sheffield

			Name:		Bryan Sheffield
			Title:		President
		
	GUARANTOR:		PARSLEY ENERGY OPERATIONS, LLC
			
			By:		 /s/ Bryan Sheffield

			Name:		Bryan Sheffield
			Title:		Manager

  
 [Eighth Amendment
Signature Page] 

					
	GUARANTOR:		PARSLEY ENERGY AVIATION, LLC
			
			By:		 /s/ Bryan Sheffield

			Name:		Bryan Sheffield
			Title:		Manager
		
	GUARANTOR:		PARSLEY FINANCE CORP.
			
			By:		 /s/ Bryan Sheffield

			Name:		Bryan Sheffield
			Title:		President

  
 [Eighth Amendment
Signature Page] 

					
	ADMINISTRATIVE AGENT AND LENDER:		WELLS FARGO BANK, NATIONAL ASSOCIATION
			
			By:		 /s/ Greg Smothers

			Name:		Greg Smothers
			Title:		Director

  
 [Eighth Amendment
Signature Page] 

					
	LENDER:		BMO HARRIS BANK, N.A.
			
			By:		 /s/ Matthew L. Davis

			Name:		Matthew L. Davis
			Title:		Vice President

  
 [Eighth Amendment
Signature Page] 

					
	LENDER:		JPMORGAN CHASE BANK, N.A.
			
			By:		 /s/ Traci Bankston

			Name:		Traci Bankston
			Title:		Authorized Officer

  
 [Eighth Amendment
Signature Page] 

					
	LENDER:		THE BANK OF NOVA SCOTIA
			
			By:		 /s/ Alan Dawson

			Name:		Alan Dawson
			Title:		Director

  
 [Eighth Amendment
Signature Page] 

					
	LENDER:		BOKF NA DBA BANK OF TEXAS
			
			By:		 /s/ Thomas E. Stelmar, Jr.

			Name:		Thomas E. Stelmar, Jr.
			Title:		Senior Vice President

  
 [Eighth Amendment
Signature Page] 

					
	LENDER:		COMPASS BANK
			
			By:		 /s/ Blake Kirshman

			Name:		Blake Kirshman
			Title:		Senior Vice President

  
 [Eighth Amendment
Signature Page] 

					
	LENDER:		CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH
			
			By:		 /s/ Nupur Kumar

			Name:		Nupur Kumar
			Title:		Authorized Signatory
			
			By:		 /s/ Karin Rahimtoola

			Name:		Karin Rahimtoola
			Title:		Authorized Signatory

  
 [Eighth Amendment
Signature Page] 

					
	LENDER:		MORGAN STANLEY BANK, N.A.
			
			By:		 /s/ Michael King

			Name:		Michael King
			Title:		Authorized Signatory

  
 [Eighth Amendment
Signature Page] 

					
	LENDER:		ROYAL BANK OF CANADA
			
			By:		 /s/ Kristan Spivey

			Name:		Kristan Spivey
			Title:		Authorized Signatory

  
 [Eighth Amendment
Signature Page] 

					
	LENDER:		U.S. BANK NATIONAL ASSOCIATION
			
			By:		 /s/ Tara McLean

			Name:		Tara McLean
			Title:		Vice President

  
 [Eighth Amendment
Signature Page] 

					
	LENDER:		FROST BANK, A TEXAS STATE BANK
			
			By:		 /s/ Jack Herndon

			Name:		Jack Herndon
			Title:		Senior Vice President

  
 [Eighth Amendment
Signature Page] 

 ANNEX I 

LIST OF MAXIMUM CREDIT AMOUNTS 
  

									
	 Name of Lender
	  	Applicable Percentage	 	 	Maximum Credit Amount	 
	 Wells Fargo Bank, National Association
	  	 	19.00	% 	 	$	142,500,000.00	  
	 BMO Harris Bank, N.A.
	  	 	14.00	% 	 	$	105,000,000.00	  
	 JPMorgan Chase Bank, N.A.
	  	 	14.00	% 	 	$	105,000,000.00	  
	 The Bank of Nova Scotia
	  	 	6.80	% 	 	$	51,000,000.00	  
	 BOKF NA dba Bank of Texas
	  	 	6.80	% 	 	$	51,000,000.00	  
	 Compass Bank
	  	 	6.80	% 	 	$	51,000,000.00	  
	 Credit Suisse AG, Cayman Islands Branch
	  	 	6.80	% 	 	$	51,000,000.00	  
	 Morgan Stanley Bank, N.A.
	  	 	6.80	% 	 	$	51,000,000.00	  
	 Royal Bank of Canada
	  	 	6.80	% 	 	$	51,000,000.00	  
	 U.S. Bank National Association
	  	 	6.80	% 	 	$	51,000,000.00	  
	 Frost Bank, a Texas State Bank
	  	 	5.40	% 	 	$	40,500,000.00	  
		  	  
	  
	 	 	  
	  
	 
	 TOTAL
		 	100.00	% 		$	750,000,000.00	  
		  	  
	  
	 	 	  
	  
	 

 Annex I to Eighth Amendmentgtatmeyerburgersettlemen

EXHIBIT 10.1    EXECUTION COPY      1   SETTLEMENT AGREEMENT      This Settlement Agreement (this “Settlement Agreement”), is made and entered as of   April 21, 2015, by and among (i) Meyer Burger AG, a corporation organized under the laws of   Switzerland, having its principal place of business at Schorenstrasse 39 3645 Gwatt (Thun),   Switzerland (“MB AG”), Diamond Materials Tech, Inc., a Delaware corporation, having its   principal place of business at 3505 North Stone Avenue, Colorado Springs, Colorado 80907   (“DMT”), and MBT Systems Ltd., a Delaware corporation, having its principal place of business   at 23562 NW Clara Lane, Hillsboro, Oregon 97142 (formerly, 309 Route 94, Columbia, New   Jersey 07832) (“MBT”, and together with MB AG and DMT, the “MB Parties”), and (ii) GTAT   Corporation, a Delaware corporation, having its principal place of business at 243 Daniel   Webster Highway, Merrimack, NH 03054 (“GTAT Corp.”), GT Advanced Technologies, Inc.,   GT Advanced Equipment Holding LLC, GT Equipment Holdings, Inc., Lindbergh Acquisition   Corp., GT Sapphire Systems Holding LLC, GT Advanced Cz LLC, GT Sapphire Systems Group   LLC and GT Advanced Technologies Limited (collectively, together with GTAT Corp., the   “GTAT Parties”).  The MB Parties and the GTAT Parties are referred to herein, collectively, as   the “Parties.”     WHEREAS, GTAT Corp. and certain of its affiliates are in the business of making,   selling, and operating furnaces for the manufacture of sapphire;     WHEREAS, beginning in December 2013, the MB Parties and GTAT Corp. entered into   various agreements (together with all related purchase orders, collectively, the “MB Contracts”)   in connection with which, among other things, the MB Parties provided to the GTAT Parties   various machinery, equipment, parts, materials, consumables, products, accessories, tooling,     

 

   2   diamond wire, and other items, including, without limitation, the items listed on Exhibit A   attached hereto (collectively, the “MB Equipment”);   WHEREAS, the GTAT Parties filed petitions for reorganization under Title 11 of the   United States Code (the “Bankruptcy Code”) in the United States Bankruptcy Court for the   District of New Hampshire (the “Bankruptcy Court”) on October 6, 2014 (the “Petition   Date”), which chapter 11 cases are being jointly administered under the caption In re GT   Advanced Technologies Inc., et al., Case No. 14-11916-HJB (the “Chapter 11 Cases”);   WHEREAS, the GTAT Parties continue to operate their businesses and manage their   properties as debtors in possession pursuant to sections 1107(a) and 1108 of the Bankruptcy   Code;     WHEREAS, on October 25, 2014, MBT submitted a reclamation demand seeking to   reclaim from GTAT Corp. goods with an invoiced value of $1,547,507.59 (the “MBT   Reclamation Demand”), and DMT submitted a reclamation demand seeking to reclaim from   GTAT Corp. goods with an invoiced value of $2,225,308.52 (the “DMT Reclamation Demand”   and, together with the MBT Reclamation Demand, the “MB Reclamation Demands”);   WHEREAS, on January 26, 2015, the MB Parties filed the following proofs of claims   against GTAT Corp. for alleged breaches of contract (collectively, the “MB Claims”):   (a) MB AG filed proof of claim No. 884 asserting a general unsecured claim   against GTAT Corp. in the amount of $6,608,500 (the “MB AG Claim”);   (b) MBT filed proof of claim No. 871 asserting claims against GTAT Corp. in   the aggregate amount of $18,226,675.74 (the “MBT Claim”), including    an administrative expense claim under section 503(b)(9) of the   Bankruptcy Code in the amount of $203,179.58; and     

 

   3   (c) DMT filed proof of claim No. 868 asserting claims against GTAT Corp. in   the aggregate amount of $11,943,334.92 (the “DMT Claim”), including   an administrative expense claim under section 503(b)(9) of the   Bankruptcy Code in the amount of $1,139,394.32;   WHEREAS, in addition to the MB Claims, MB AG has asserted, by letter dated   November 19, 2014, that it holds an ownership interest in 18 Brickmaster BM 860s (the   “Brickmasters”) that are in the possession of the GTAT Parties, and that MB AG asserts has a   total value of $11,895,300;     WHEREAS, GTAT Corp. previously granted the MB Reclamation Demands by notice   dated February 6, 2015 [Docket No. 1229] (the “Reclamation Notice”), subject to the terms and   limitations set forth in the Reclamation Notice;    WHEREAS, on February 26, 2015, MBT and DMT each filed objections to the   Reclamation Notice as it relates to their Reclamation Demands [Docket Nos. 1348 and 1349]   (the “Reclamation Objections”);   WHEREAS, GTAT Corp. disputes the MB Claims and the Reclamation Objections,   asserts affirmative claims against the MB Parties for breach of the MB Contracts, and asserts that   it has legal title to the Brickmasters; and    WHEREAS, the Parties now desire to enter into an agreement settling (a) any and all   claims by the MB Parties against the GT Parties, including, without limitation, the MB Claims,   (b) any and all reclamation demands by the MB Parties against the GT Parties, including,   without limitation the MB Reclamation Demands, (c) any and all obligations of the MB Parties   to GTAT Corp. under the MB Contracts and any and all obligations of GTAT Corp. to the MB   Parties under the MB Contracts, and (d) the Parties’ right, title, and interest to any and all     

 

   4   machinery, equipment, parts, materials, consumables, products, accessories, tooling, diamond   wire, or any other items provided by the MB Parties to the GT Parties.   NOW THEREFORE, in consideration of the mutual representations, warranties,   covenants and agreements set forth herein and of good and valuable consideration, the receipt   and sufficiency of which are hereby acknowledged, and notwithstanding any provision in the   MB Contracts or any other prior agreement, arrangement or understanding between or among the   GTAT Parties or the MB Parties to the contrary, the Parties hereby agree, effective upon the   occurrence of the Effective Date (as hereinafter defined), as follows:   1. MB Reclamation Demands.  The MB Parties waive and withdraw any and all   reclamation demands for any and all goods received by the GTAT Parties, including, without   limitation, the MB Reclamation Demands.   2. Administrative Expense Claims: The MB Parties waive and withdraw any and all   administrative expense claims against the GTAT Parties, including, without limitation, any   administrative expense claims arising under section 503(b)(9) of the Bankruptcy Code.     3. Rejection of MB Contracts.  The MB Contracts shall be deemed rejected pursuant   to section 365(a) of the Bankruptcy Code.     4. Allowed General Unsecured Claims Against GTAT Corp.   (a) MB AG shall have an allowed general unsecured claim in the amount of   $6,252,993.82 against GTAT Corp.  The balance of the MB AG Claim is waived and   extinguished.  The MB AG Claim is deemed amended accordingly.    (b) MBT shall have an allowed general unsecured claim in the amount of   $17,246,166.43 against GTAT Corp.  The balance of the MBT Claim is waived and   extinguished.  The MBT Claim is deemed amended accordingly.       

 

   5   (c) DMT shall have an allowed general unsecured claim in the amount of   $11,300,839.75 against GTAT Corp.  The balance of the DMT Claim is waived and   extinguished.  The DMT Claim is deemed amended accordingly.    (d) The Approval Order (as hereinafter defined) shall provide that upon its   entry, the claims described in this paragraph 4 shall be valid, enforceable, unsubordinated,   liquidated, non-contingent claims that are not subject to any counterclaim, defense, claim,   reduction, recoupment, set-off, avoidance, recharacterization,  disgorgement, disallowance,   subordination or reconsideration, pursuant to Section 502(d) or 502(j) of the Bankruptcy Code,   Bankruptcy Rule 3008, 9023 or 9024, or otherwise, nor are any distributions made or to be made   in respect of such claims subject to any of the foregoing.     5. Ownership of MB Equipment.  The Approval Order shall find and declare that the   MB Parties have sold and transferred all right, title, and interest whatsoever in and to any and all   MB Equipment to GTAT Corp. and that GTAT Corp. is the owner of any and all the MB   Equipment, including, without limitation, the Brickmasters, free and clear of any liens, claims,   encumbrances, or interests.  For the avoidance of doubt, the GTAT Parties shall have no right to   any parts and equipment in the possession of the MB Parties as of the Effective Date.  The MB   Parties shall provide the GTAT Parties, at no cost, with any keys, codes, or passwords, including   any updates thereof and related written instructions, required to operate the MB Equipment.    6. Intellectual Property.  Nothing contained in this Agreement shall constitute a   license, sale, or transfer of the MB Parties’ intellectual property to the GTAT Parties; provided,   however, and notwithstanding the terms and conditions of any previous licenses, the MB Parties   hereby grant to GTAT Corp. the right to use any software or other technology in connection with   any and all MB Equipment.  For the avoidance of doubt, in connection with a sale of any MB     

 

   6   Equipment by GTAT Corp. to a purchaser, GTAT Corp. may transfer its right to use such   software or other technology to such purchaser.     7. Servicing and Warranties.  The MB Parties shall have no obligations to service or   honor any warranties on any and all MB Equipment; provided, however, that the MB Parties   hereby agree that any future purchaser of MB Equipment shall be entitled to purchase any   support and/or maintenance that the MB Parties offer generally to their customers at the standard   list price for such support and/or maintenance.     8. Mutual Release of Claims.  In consideration of the foregoing, effective as of the   Effective Date, (i) each of the MB Parties hereby releases, remises and forever discharges the   GTAT Parties and their current and former officers, directors, agents, attorneys, employees,   affiliates, advisors, consultants, attorneys, shareholders and members (collectively, “GTAT   Releasees”) of and from all debts, demands, actions, causes of action, suits, accounts,   covenants, contracts, agreements, claims, rights, damages, losses or liabilities of any kind or   nature whatsoever, both at law or in equity, whether known or unknown which arose at any time   prior to the Effective Date, or which hereafter could arise based on any act, fact, transaction,   cause, matter or thing which occurred prior to the Effective Date related to the MB Contracts, the   MB Equipment, or the business relationship between the MB Parties and the GTAT Parties, and   (ii) each of the GTAT Parties hereby releases, remises and forever discharges the MB Parties and   their current and former officers, directors, agents, attorneys, employees, affiliates, advisors,   consultants, attorneys, shareholders and members (collectively, “MB Releasees”) of and from   all debts, demands, actions, causes of action, avoidance actions, suits, accounts, covenants,   contracts, agreements, claims, rights, damages, offsets, losses or liabilities of any kind or nature   whatsoever, both at law or in equity, whether known or unknown which arose at any time     

 

   7   prior to the Effective Date, or which hereafter could arise based on any act, fact, transaction,   cause, matter or thing which occurred prior to the Effective Date related to the MB Contracts,   the MB Equipment, or the business relationship between the MB Parties and the GTAT Parties.    Notwithstanding the foregoing, no GTAT Releasee or MB Releasee is released in respect of any   rights or claims arising under the express terms of this Settlement Agreement.  For the   avoidance of doubt, upon entry of the Approval Order, (a) the MB Parties shall have no   reclamation claims for any goods received by any GT Party, (b) the MB Parties shall have no   administrative expense claims against any GT Party, (c) the only claims of any MB Party   surviving against any GT Party shall be the general unsecured claims allowed under Section   4 of this Agreement, and (d) the GT Parties shall have no claims against any MB Party.   9. Public Communications and Non-Disparagement.  The Parties will cooperate   with respect to all public communications regarding this Settlement Agreement and the   subject matter hereof, and further undertake not to disparage the other Party or its affiliates or   their officers and directors.  Each of the GTAT Parties hereby irrevocably and unconditionally   agrees that it shall not, in any manner at any time, directly or indirectly, voluntarily disparage,   denigrate or derogate any of the MB Parties, or any officer, director, employee, product, service,   method, procedure or operation of any of the MB Parties, and each of the MB Parties hereby   irrevocably and unconditionally agrees that it shall not, in any manner at any time, directly or   indirectly, voluntarily, disparage, denigrate or derogate any of the GTAT Parties, or any officer,   director, employee, product, service, method, procedure or operation of any of the GTAT Parties.    This provision shall not prohibit any disclosure or statement made pursuant to any subpoena or   order of court of competent jurisdiction, or otherwise required by law.  This provision also shall   not prohibit a statement by a Party in response to a disparaging, denigrating or derogatory     

 

   8   statement made by the other Party or any of its current or former officers, directors or employees   (whether or not in violation of this Section 9).  This Section 9 shall be effective upon execution   of this Settlement Agreement.  The MB Parties and GTAT Parties may refer to this non-   disparagement provision in any public statement.     10. Bankruptcy.     (a) The GTAT Parties shall, no later than two (2) business days following the   execution of this Settlement Agreement by each of the Parties, file a motion (the “Motion”) with   the Bankruptcy Court seeking entry of the Approval Order (as defined below).  The GTAT   Parties shall request that the hearing on the Motion be scheduled, on regular notice, on a date on   or before May 31, 2015 in accordance with any scheduling orders applicable to the Chapter 11   Cases and the Federal Rules of Bankruptcy Procedure.  If the Court denies such request, the   Motion shall be heard at the June 11, 2015 omnibus hearing in the Chapter 11 Cases.  The form   of the Motion and Approval Order submitted to the Bankruptcy Court shall be reasonably   satisfactory to the MB Parties.     (b) The following conditions concerning the Approval Order shall be   conditions to the effectiveness of this Settlement Agreement.      (c) The Approval Order shall contain all of the provisions described herein;   and   (d) The Approval Order shall provide that it shall be binding on any chapter 1l   trustee and/or examiner appointed in the Chapter 11 Cases or any chapter 7 trustee appointed for   any of the GTAT Parties upon a conversion of any of the Chapter 11 Cases to cases under   chapter 7 of the Bankruptcy Code.     

 

   9   11. Effectiveness.  The Parties hereby agree that this Settlement Agreement shall be   conditioned upon (a) the entry of an order of the Bankruptcy Court approving this Settlement   Agreement (the “Approval Order”), and (b) the Approval Order becoming final and no longer   subject to any appeal (the “Effective Date”).     12. Notices.  All notices, requests, consents, claims, demands, waivers and other   communications hereunder shall be in writing and shall be deemed to have been given   (a) when delivered by hand (with written confirmation of receipt); (b) when received by the   addressee if sent by a nationally recognized overnight courier (receipt requested); (c) on the   date sent by facsimile or e-mail of a PDF document (with confirmation of transmission) if sent   during normal business hours of the recipient, and on the next business day if sent after normal   business hours of the recipient; or (d) on the third day after the date mailed,  by certified or   registered mail, return receipt requested, postage prepaid.  Such communications must be sent to   the respective Parties at the addresses indicated below (or at such other address for a Party as   shall be specified in a notice given in accordance with this Section 15).     If to the MB Parties:   Michael Leiser   Head of Group Tax & Legal    Meyer Burger Technology AG   Schorenstrasse 39    CH-3645 Gwatt (Thun)/Switzerland   Tel: +41 33 221 21 00   Michael.leiser@meyerburger.com      and      Derek Taylor   CFO   Diamond Materials Tech, Inc.   3505 N. Stone Ave.    Colorado Springs, CO 80907   Tel: (719) 570-1150 ext. 1019    d.taylor@dmt-inc.com        

 

   10   with a copy to:   Robert A. Soriano   Greenberg Traurig, P.A.   625 E. Twiggs Street, Suite 100   Tampa, FL 32602   Tel: (813) 318-5700   sorianor@gtlaw.com       If to the GTAT Parties:  Hoil Kim   Vice President, General Counsel   GT Advanced Technologies, Inc.   243 Daniel Webster Highway   Merrimack, NH 03054   Tel:  (603) 681-3820    hoil.kim@gtat.com       with a copy to:   Luc Despins   Paul Hastings LLP   75 East 55th Street   New York, NY 10022   Tel: (212) 318-6001    lucdespins@paulhastings.com      13. Entire Agreement.  This Settlement Agreement constitutes the sole and   entire agreement of the Parties with respect to the subject matter contained herein, and   supersedes all prior and contemporaneous understandings and agreements, both written and   oral, with respect to such subject matter.     14. Successor and Assigns.  This Settlement Agreement shall be binding upon and   shall inure to the benefit of the Parties and their respective successors and assigns.   15. No Third-Party Beneficiaries.  This Settlement Agreement is for the sole benefit   of the Parties and their respective successors and assigns (and, to the extent provided herein,   affiliates) and nothing herein, express or implied, is intended to or shall confer upon any other   person any legal or equitable right, benefit or remedy of any nature whatsoever, under or by   reason of this Settlement Agreement.       

 

   11   16. Headings.  The headings in this Settlement Agreement are for reference only and   shall not affect the interpretation of this Settlement Agreement.   17. Amendment and Modification; Waiver.  No waiver by any Party of any of the   provisions hereof shall be effective unless explicitly set forth in writing and signed by the Party   so waiving.  Except as otherwise set forth in this Settlement Agreement, no failure to exercise, or   delay in exercising, any rights, remedy, power or privilege arising from this Settlement   Agreement shall operate or be construed as a waiver thereof; nor shall any single or partial   exercise of any right.     18. Severability.  If any term or provision of this Settlement Agreement is invalid,   illegal or unenforceable in any jurisdiction, such invalidity, illegality or unenforceability shall   not affect any other term or provision of this Settlement Agreement or invalidate or render   unenforceable such term or provision in any other jurisdiction.  Upon such determination that   any term or other provision is invalid, illegal or unenforceable, the Parties shall negotiate in good   faith to modify this Settlement Agreement so as to effect the original intent of the Parties as   closely as possible in a mutually acceptable manner in order that the transactions contemplated   hereby be consummated as originally contemplated to the greatest extent possible.   19. Governing Law; Submission to Jurisdiction.  This Settlement Agreement and the   rights and obligations of the Parties will be governed by and construed and enforced in   accordance with the laws of New Hampshire.  All actions and proceedings arising out of or   relating to this Settlement Agreement or the facts and circumstances leading to its execution,   whether in contract, tort or otherwise, shall be heard and determined in the Bankruptcy Court, or   if the Bankruptcy Court no longer has jurisdiction or abstains, then in the state courts of New   York sitting in New York City in the Borough of Manhattan or, to the extent subject matter     

 

   12   jurisdiction exists therefor, the United States District Court for the Southern District of New   York, and the Parties irrevocably submit to the exclusive jurisdiction of such courts in respect of   any such actions or proceedings.   20. Waiver of Jury Trial.  Each Party irrevocably and unconditionally waives any   right it may have to a trial by jury in respect of any legal action arising out of or relating to this   Settlement Agreement or the transactions contemplated hereby.  Each Party to this Settlement   Agreement certifies and acknowledges that (a) no representative of any other Party has   represented, expressly or otherwise, that such other Party would not seek to enforce the   foregoing waiver in the event of a legal action; (b) such Party has considered the implications of   this waiver; (c) such Party makes this waiver voluntarily; and (d) such Party has been induced to   enter into this Settlement Agreement by, among other things, the mutual waivers and   certifications in this Section 21.     21. Counterparts.  This Settlement Agreement may be executed in counterparts, each   of which shall be deemed an original, but all of which together shall be deemed to be one and the   same agreement.  A signed copy of this Settlement Agreement delivered by facsimile, e-mail or   other means of electronic transmission shall be deemed to have the same legal effect as delivery   of an original signed copy of this Settlement Agreement.     22. No Strict Construction.  The Parties have participated jointly in the negotiation   and drafting of this Settlement Agreement.  In the event an ambiguity or question of intent or   interpretation arises, this Settlement Agreement will be construed as if drafted jointly by the   Parties, and no presumption or burden of proof will arise favoring or disfavoring any Party   by virtue of the authorship of any of the provisions of this Settlement Agreement.     [Signature Pages Follow]     

 

         IN WITNESS WHEREOF, the Parties have executed this Settlement Agreement on the   date first written above.   MEYER BURGER AG         By: /s/ Tom Devine        Tom Devine   Title: Attorney in Fact      and      By: /s/ Derek Taylor        Derek Taylor   Title: Attorney in Fact            DIAMOND MATERIALS TECH, INC.         By: /s/Tom Devine        Tom Devine   Title: President      and      By: /s/ Derek Taylor        Derek Taylor   Title: Chief Financial Officer            MBT SYSTEMS LTD.         By: /s/ Tom Devine        Tom Devine   Title: Attorney in Fact      and      By: /s/ Derek Taylor        Derek Taylor   Title: Attorney in Fact     

 

            GTAT CORPORATION         By: /s/ Hoil Kim         Name: Hoil Kim         Title: Vice President and General Counsel               GT ADVANCED TECHNOLOGIES, INC.         By: /s/ Hoil Kim         Name: Hoil Kim         Title: Vice President and General Counsel               GT ADVANCED EQUIPMENT HOLDING LLC         By: /s/ Hoil Kim         Name: Hoil Kim         Title: Vice President and General Counsel               GT EQUIPMENT HOLDINGS, INC.         By: /s/ Hoil Kim         Name: Hoil Kim         Title: Vice President and General Counsel               LINDBERGH ACQUISITION CORP         By: /s/ Hoil Kim         Name: Hoil Kim         Title: Vice President and General Counsel              

 

         GT SAPPHIRE SYSTEMS HOLDING LLC         By: /s/ Hoil Kim         Name: Hoil Kim         Title: Vice President and General Counsel               GT ADVANCED CZ LLC         By: /s/ Hoil Kim         Name: Hoil Kim         Title: Vice President and General Counsel               GT SAPPHIRE SYSTEMS GROUP LLC         By: /s/ Hoil Kim         Name: Hoil Kim         Title: Vice President and General Counsel               GT ADVANCED TECHNOLOGIES LIMITED         By: /s/ Hoil Kim         Name: Hoil Kim         Title: Director

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