Document:

exhibit101amendedapplese

EXHIBIT 10.1   EXECUTION COPY   IN RE GT ADVANCED TECHNOLOGIES INC. ET AL.    (the “Company” or the “Debtors”)   AMENDED TERMS OF RESOLUTION OF APPLE CLAIMS AND MESA LEASE ISSUES   November 26, 2015    INTRODUCTION   This amended agreement (the “Amended Agreement”) among the Debtor signatories hereto and   Apple Inc. and certain of its affiliates (collectively, “Apple”) supersedes the Terms of Resolution   of Apple Claims and Mesa Lease Issues dated November 2, 2015 and the Amended and Restated   Adequate Protection and Settlement Agreement (the “Settlement Agreement”), subject to the   surviving sections of the Settlement Agreement enumerated in Paragraph 14 of this Agreement,   and amends the Amended and Restated Facility Lease Agreement (the “Mesa Lease”) both dated   as of December 15, 2014, to the extent provided herein.  All capitalized terms used herein and   not otherwise defined will have the meanings ascribed to such terms in the Settlement   Agreement and the Mesa Lease, as applicable.   SETTLEMENT TERMS   1. The Amended Agreement will become effective as of the date on which both (i) the   Amended Agreement is approved by the Bankruptcy Court (the “Effective Date”)   pursuant to an order satisfactory to the parties hereto, and (ii) a waiver and amendment of   the DIP Facility (as defined below) is consummated.   2. The Debtors will conduct an auction of the ASF Furnaces currently located in the Mesa   Facility pursuant to procedures approved by the Debtors, Apple and the DIP Lenders and   approved by the Bankruptcy Court pursuant to Bankruptcy Code section 363 (the “Sale   Auction”).  The Sale Auction shall take place on or prior to December 2, 2015.  The   Debtors shall have no obligation to sell any ASF Furnaces at the Sale Auction.   3. The Debtors shall receive 50% of the Net Proceeds of all ASF Furnaces sold in or before   such Sale Auction (the “Sold Furnaces”), with the remaining 50% of Net Proceeds being   distributed to Apple.  For purposes of this Amended Agreement, “Net Proceeds” means   the proceeds from the sale, lease or other transfer or disposition of ASF Furnaces or parts   thereof to be received by the Debtors or the DIP Lenders (or any other party if such sale   would benefit the Debtors or the DIP Lenders), net of all (a) reasonable costs associated   with conducting the Sale Auction, including any applicable commission payments, (b)   reasonable storage costs, (c) customary installation, logistics, or shipping charges, and (d)   costs of any replacement parts required to be purchased as part of fulfilling the sale, in   each case with respect to the ASF Furnaces sold.  For the avoidance of doubt, Net   Proceeds shall exclude any customary fees for support services, warranties, and post-sale   services (all such fees being consistent with past practices and in amounts not to exceed   those listed on Exhibit 1 hereto) provided by the Debtors to the buyer of ASF Furnaces   and any items that may accompany the sale of ASF Furnaces (such as mezzanines and   start-up kits).  The Sold Furnaces shall be removed from the Mesa Facility by December   31, 2015.     

 

      2            4. The Debtors shall have the option, with the consent of the lenders (the “DIP Lenders”)   under that certain Senior Secured Superpriority Debtor-in-Possession Credit Agreement,   dated as of July 27, 2015, to retain any number of the ASF Furnaces currently located at   the Mesa Facility (the “Retained Furnaces”); provided, however, that the Debtors may   only retain in excess of 364 Retained Furnaces (such excess, the “Surplus Retained   Furnaces”) to the extent (x) the Debtors believe, in good faith, that they will be able to   sell such Surplus Retained Furnaces and (y) have such furnaces removed from the Mesa   Facility, by January 31, 2016. The proceeds, if any, from the scrapping of Retained   Furnaces, net of the costs of such scrapping, shall be distributed 50% to the Debtors and   50% to Apple. For all purposes herein Surplus Retained Furnaces shall be deemed   Retained Furnaces.  The Debtors shall choose which ASF Furnaces are Retained   Furnaces by close of business on December 3, 2015 and shall promptly begin removing   such Retained Furnaces from the Mesa Facility.  If the Debtors or the DIP Lenders (or   any other party if such sale would benefit the Debtors or the DIP Lenders) sell or   otherwise dispose of, on or before December 15, 2018, any Retained Furnaces or any   ASF Furnaces currently in inventory at the Debtors’ other facilities, the Debtors shall   retain 50% of the Net Proceeds of such sale or disposition, with the remaining 50% of   Net Proceeds being distributed to Apple; provided, however, that if GT Advanced   Technologies Limited (“GT HK”) sells any of its ASF Furnaces, GTAT Corporation   (“GTAT Corp.”) shall pay Apple 50% of the Net Proceeds of such sale instead of GT   HK.  For the avoidance of doubt, (i) ASF Furnaces not currently in existence shall not be   subject to the sharing of Net Proceeds in this Paragraph and (ii) GTAT’s obligation under   this Paragraph to make distributions to Apple on account of the sale or disposition of   Retained Furnaces or any ASF Furnaces currently in inventory at the Debtors’ other   facilities terminates on December 15, 2018.  The Debtors agree not to sell any ASF   Furnaces not currently in existence until after all ASF Furnaces currently in the Debtors’   inventory have been sold or scrapped.  The Debtors are not having any current   discussions, negotiations, and have not reached any understandings or agreements with   any existing or prospective customers to sell ASF Furnaces not currently in existence.    The Debtors shall provide to Apple and the Collateral Agent a quarterly report regarding   the sales of any ASF Furnaces, including the number sold and sale prices, and Apple   shall have the right to conduct an audit of such sales and prices.   5. On December 3, 2015, title to any ASF Furnaces located at the Mesa Facility other than   the Sold Furnaces and the Retained Furnaces (such other ASF Furnaces, the “Excess   Furnaces”) shall immediately and automatically for no consideration and without need   for further order of the court transfer to Apple, free and clear of all liens, claims,   encumbrances and interests, including, without limitation, liens granted to secure the DIP   Facility and any Priming Financing.  In the event the Sale Auction does not take place on   or prior to December 2, 2015, all ASF Furnaces located at the Mesa Facility other than   the Retained Furnaces shall be deemed Excess Furnaces and title to such ASF Furnaces   shall immediately and automatically for no consideration and without the need for further     

 

      3            order of the court transfer to Apple, free and clear of any and all liens, claims,   encumbrances and interests, including, without limitation, liens granted to secure the DIP   Facility and any Priming Financing.    6. Apple agrees that it will scrap all of the Excess Furnaces and any other ASF Furnaces to   which it obtains title pursuant to this Amended Agreement at its own cost and expense.    For the avoidance of doubt, Apple shall only be permitted to scrap the Excess Furnaces   and any other furnace to which it obtains title pursuant to this Amended Agreement and   shall not be permitted to use the Excess Furnaces or sell or transfer the Excess Furnaces   except as part of the scrapping process. The proceeds, if any, from the scrapping of   Excess Furnaces, net of the costs of such scrapping, shall be distributed 50% to the   Debtors and 50% to Apple.         7. As of December 3, 2015, the Mesa Lease will be deemed amended without the need for   any further agreement to provide that (a) the Debtors’ obligation to pay Additional Rent   (as defined in the Mesa Lease) and for the cost of security at the Mesa Facility shall   terminate, (b) the Debtors shall have no further obligations to make any other payments   in connection with the Mesa Lease, including without limitation, any obligations to clean,   repair or refurbish the Mesa Facility or make utility payments with respect to the Mesa   Facility, and (c) Apple shall have no obligation to repair any portion of the Mesa Facility   that may have been damaged in the May 26, 2015 fire (the “Mesa Fire”).  For the   avoidance of doubt, the Debtors shall be entitled to any and all insurance proceeds from   insurance the Debtors maintain and for which the Debtors are the beneficiaries.  The   Debtors shall be required to maintain Minimum Insurance Requirements as set forth in   the Mesa Lease until such time as the Debtors have completely vacated the Mesa Facility.   8. If the Debtors sell 400 or more ASF Furnaces, the Debtors (a) shall remove all Sold   Furnaces and Retained Furnaces from the areas of the Mesa Facility marked Mod 1, Mod   2 or “Quick Start,” and Pilot Line on the diagram attached hereto as Exhibit 2 (the   “Excluded Space”) by December 31 2015, (b) may keep such Sold Furnaces and   Retained Furnaces in areas of the Mesa Facility other than the Excluded Space, and (c)   must vacate all of the Mesa Facility by January 31, 2016.   On December 31, 2015, the   Debtors shall completely vacate and remove all property from the Excluded Space and   leave the Excluded Space in broom clean condition.  For the avoidance of doubt, broom   clean condition shall include having all safe off work performed and all mezzanines and   other parts/pieces/equipment out of the Excluded Space.  Any ASF Furnaces remaining   in the Excluded Space on December 31, 2015 or in the Mesa Facility on January 31, 2016   shall be deemed Excess Furnaces and title to such ASF Furnaces shall immediately and   automatically for no consideration and without the need for further order of the court   transfer to Apple, free and clear of any and all liens, claims, encumbrances and interests,   including, without limitation, liens granted to secure the DIP Facility and any Priming   Financing, unless such Sold Furnaces or Retained Furnaces were prevented from removal     

 

      4            because of affirmative action by Apple that materially and demonstrably prevented such   removal.  If the Debtors sell less than 400 ASF Furnaces, they shall vacate all of the   Mesa Facility by December 31, 2015.   9. The Debtors shall cooperate with Apple regarding a logistics plan for the removal of Sold   Furnaces or Retained Furnaces.   10. Except as otherwise provided in this Amended Agreement, all other terms and conditions   of the Mesa Lease will remain unchanged until the Debtors have removed all ASF   Furnaces from the Mesa Facility.  As of the Effective Date, the Warehouse Lease, dated   as of December 15, 2014 (“Warehouse Lease”), will be deemed terminated and the rights   and obligations of each party thereunder shall be null and void.  If the Debtors sell 400 or   more ASF Furnaces, after December 31, 2015 until January 31, 2016, the Debtors shall   have limited rights to access the Mesa Facility to pack and remove the Retained Furnaces   or Sold Furnaces.   11. Apple agrees, as of the Effective Date, that the Sold Furnaces, the Retained Furnaces and   any ASF Furnace not located at the Mesa Facility may be sold for less than the Apple   Repayment Amount, including for scrapping.      12. The Debtors shall have 30 days from the Effective Date to sell or remove Tenant’s   Property (other than ASF Furnaces) from the Mesa Facility.  In the event any Tenant’s   Property (other than ASF Furnaces) remains in the Mesa Facility after such 30-day   period, title to such remaining Tenant’s Property shall immediately and automatically and   without the need for further order of the court transfer to Apple, free and clear of any   liens, claims, encumbrances and interests, including, without limitation, liens granted to   secure the DIP Facility and any Priming Facility in such furnaces and other personal   property.  For the avoidance of doubt, Tenant’s Property shall include, without limitation,   all mezzanines, connections and ancillary equipment supporting the ASF Furnaces   located in the Mesa Facility, meltstock, and the Mesa Equipment, including all Meyer   Burger cutting and other fabrication and inspection equipment.   13. Other than as provided in Paragraphs 3 and 4 hereof, and any provision hereof to which   title to the ASF Furnaces or other property is transferred to Apple, Apple shall not receive   any further distributions from the Debtors’ bankruptcy estates or their successors,   whether under a chapter 11 plan or otherwise, and shall not assert any claims against   GTAT or its successors other than claims arising after the date hereof or based on a   breach of the Agreement.      14. Apple will, as of December 2, 2015, release and discharge any and all liens and security   interests in property of the Debtors’ estates.  For the avoidance of doubt, any rights in   favor of Apple under the Order Pursuant to Bankruptcy Code Sections 105, 361, 362,   363(b), 363(c), 363(e), 364, 503(b), and 507 and Bankruptcy Rules 2002, 4001, 6004(h),     

 

      5            and 9014: (I) Authorizing Debtors to Obtain Postpetition Financing; (II) Granting Liens   and Super-Priority Claims; (III) Authorizing Debtors to Pay Put Option Premium and   Expense Reimbursement; (IV) Approving Information Sharing Obligations and Indemnity   Thereunder; and (V) Granting Related Relief [Docket No. 2122] (the “DIP Order”), or   the “DIP Documents” (as defined in the DIP Order) shall be terminated.     15. Except as otherwise provided herein and with respect to enforcement of this Amended   Agreement, each party shall, as of the Effective Date, release and forever discharge the   other for any and all claims, losses, liabilities, damages and causes of action, whether   known or unknown, relating to the Settlement Agreement, the Mesa Lease, including,   without limitation, the Mesa Fire, the Warehouse Lease, the Apple Contracts and any   other aspect of their business relationship; provided, however, that nothing herein   releases any party hereto from any liability to the other for claims arising after the date   hereof; provided further, however, that sections 1(a), 1(b), 1(c), 4(a), 4(b), 4(d), 4(e), 4(f),   5, 6 and 9 of the Settlement Agreement shall not be affected by the foregoing release, and   all other provisions of the Settlement Agreement will be deemed terminated and shall be   of no force and effect commencing on the Effective Date.     16. After title to the Excess Furnaces passes to Apple, the Debtors may cancel any property   insurance policies related to the Excess Furnaces, after title to any Tenant’s Property   (other than ASF Furnaces) passes to Apple, the Debtors may cancel any property   insurance policies related to any Tenant’s Property (other than ASF Furnaces) that   remains on the Mesa Facility after 30 days after the Effective Date.   17. For the avoidance of doubt, the transfer of title of Excess Furnaces and any other assets to   Apple under this Amended Agreement is to facilitate disposal of such assets and not in   repayment of debt.   18. Apple’s non-recourse claim in the amount of $439 million pursuant to the Settlement   Agreement shall be deemed satisfied and expunged as of the Effective Date in exchange   for the right of Apple, under this Amended Agreement, to receive 50% of the Net   Proceeds from Sold Furnaces and future sales or dispositions of the Retained Furnaces or   any ASF Furnaces currently in inventory at the Debtors’ other facilities.   19. The Amended Agreement shall be binding on any chapter 7 trustee appointed for the   Debtors.   20. 34 of the Retained Furnaces shall be held by the Debtors subject to the contingent interest   granted to Tera Xtal Technology Corp. (“TXT”) in paragraph 13 of the Order Pursuant   to Bankruptcy Code Sections 105, 361, 363(b), 364, and 365 and Bankruptcy Rule 9019   Approving the Terms of and Authorizing Debtors to Enter Into Adequate Protection and   Settlement Agreement with Apple [Docket No. 819].  Therefore, until and unless the   Bankruptcy Court holds that TXT has no interest in such ASF Furnaces, the sale of such     

 

      6            34 ASF Furnaces shall not trigger the application of the sharing formula in Paragraphs 3   and 4 hereof; provided that the Debtors will endeavor to sell such 34 ASF Furnaces after   any ASF Furnace on which TXT does not have a contingent interest.   21. The Debtors will amend the Intercompany Settlement Agreement, dated as of July 20,   2015, by and among GT HK, GTAT Corp., and GT Advanced Equipment Holding LLC,   and the ancillary documents and exhibits related thereto (collectively, the “Intercompany   Settlement Agreement”) to reflect this Amended Agreement prior to the Effective Date of   this Amended Agreement, which amendment shall be in form and substance acceptable   to the Required Lenders as provided under the DIP Documents.    22. The Debtors shall pay to Apple its share of the Net Proceeds from the sale of each ASF   Furnace in accordance with this Amended Agreement within three (3) business days of   the receipt of the proceeds of such sale.  Payments of 50% of the proceeds from the   scrapping of ASF Furnaces (net of the costs of such scrapping), as specified in this   Amended Agreement, shall be made to the party entitled thereto promptly after receipt of   such net proceeds by the party arranging for such scrapping.   23. This Amended Agreement and the rights and obligations of the parties will be governed   and construed and enforced in accordance with the laws of the State of New York,   without regard to conflicts of law principles.   24. This Amended Agreement may not be amended except as agreed to in writing by all   parties.   25. The terms of this Amended Agreement shall be incorporated into a motion and proposed   order to be submitted as soon as possible to the Bankruptcy Court.  Such motion and   proposed order shall be in form and substance satisfactory to the parties to this   Agreement.        

 

      7            IN WITNESS WHEREOF, the parties hereto have caused this Amended Agreement to be duly   executed as of the date first written above.       APPLE INC.    By:  Illegible     Name: Illegible    Title: Illegible        PLATYPUS DEVELOPMENT LLC    By:  /s/Gene Daniel Levoff    Name: Gene Daniel Levoff   Title: Authorized Person       GTAT CORPORATION    By:  /s/Hoil Kim     Name: Hoil Kim    Title: Vice President, Chief               Administrative Officer,               General Counsel and               Secretary       GT ADVANCED TECHNOLOGIES   INC.    By:  /s/Hoil Kim     Name: Hoil Kim    Title: Vice President, Chief               Administrative Officer,               General Counsel and               Secretary        

 

      8                   GT ADVANCED EQUIPMENT   HOLDING LLC    By:  /s/Hoil Kim     Name: Hoil Kim    Title: Manager       GT EQUIPMENT HOLDINGS, INC.    By:  /s/Hoil Kim     Name: Hoil Kim    Title: Vice President and Secretary       LINDBERGH ACQUISITION   CORP    By:  /s/Hoil Kim     Name: Hoil Kim    Title: Vice President and Secretary       GT SAPPHIRE SYSTEMS   HOLDING LLC    By:  /s/Hoil Kim     Name: Hoil Kim   Title: Vice President, General               Counsel and Secretary           

 

      9             GT ADVANCED CZ LLC       By:  /s/Hoil Kim    Name: Hoil Kim    Title: Vice President, General               Counsel and Secretary       GT SAPPHIRE SYSTEMS GROUP   LLC       By:  /s/Hoil Kim     Name: Hoil Kim    Title: Vice President, General               Counsel and Secretary           

 

   Exhibit 1 – Exclusions from Net Proceeds   1)       Installation charges of up to $25,000 per ASF Furnace.   2)       Warranty service charges of up to (a) $20,000 per ASF Furnace currently located in   Mesa, Arizona, and (b) $10,000 per ASF Furnace currently located in the Debtors’ other   facilities.     3)       Shipping charges of up to (a) $10,000 per ASF Furnace currently located in the United   States, and (b) up to $5,000 per ASF Furnace currently located in the Debtors’ other   facilities.   4) Reasonable commissions, if any, to be paid to third parties to facilitate the sale of ASF   Furnaces.           

 

      11            Exhibit 2 – Excluded Space                 

 

10.22.2013      PHASING PLAN   Project No: 478102   CASCADE   P-01   Pilot Line   20 Furnaces   Main Ramp   1901 Furnaces   Future   559 Furnaces   315   Furnaces   559   Furnaces   559   Furnaces   559   Furnaces   468   Furnaces   Mod 1   Semi-permanent   demising wall   Scope limit:   Concrete demo/repour   and floor sealer   Fabrication Area   Current Build | 2,061 Furnaces   Future Capacity | 2,620 Furnaces   Quick Start   140   Furnaces   Mod 2 Mod 3 Mod 4 Mod 5exhibit102firstamendment

EXHIBIT 10.2   111132808 v10   AMENDMENT NO. 1 TO   SENIOR SECURED SUPERPRIORITY DEBTOR-IN-POSSESSION CREDIT   AGREEMENT   This AMENDMENT NO. 1, dated as of December 1, 2015 (this "Amendment"), to the   Senior Secured Superpriority Debtor-in-Possession Credit Agreement, dated as of July 27, 2015,   among (a) GT Advanced Technologies Inc., a Delaware corporation, as a debtor and debtor-in-   possession (the “Borrower”), (b) certain Subsidiaries of Borrower, each as a debtor and debtor-   possession, as Guarantors party thereto, (c) the lenders party from time to time thereto   (collectively, the "Lenders" and individually, a “Lender”), and (d) Cantor Fitzgerald Securities,   as administrative agent (in such capacity, the "Administrative Agent") and as collateral agent for   the Lenders (in such capacity, the “Collateral Agent” and together with the Administrative   Agent, collectively, the “Agent”) (as in effect prior to the effectiveness of this Amendment, the   "Existing DIP Credit Agreement"; the DIP Credit Agreement, as amended by this Amendment,   is referred to herein as the "DIP Credit Agreement"), is by and among the Borrower, the   Guarantors, the Required Lenders and the Agent.  Unless otherwise defined herein, capitalized   terms used herein shall have the meanings provided in the DIP Credit Agreement.   WHEREAS, Borrower has requested that the Lenders consent to the settlement   contemplated in that certain Amended Terms of Resolutions of Apple Claims and Mesa Lease   Issues, dated as of November 26, 2015, by and among Apple Inc., Platypus Development LLC   and the Debtors (other than the Hong Kong Debtor) (the “Apple Settlement Amendment”); and   WHEREAS, Borrower, the Guarantors, the Required Lenders and the Agent desire to   amend certain provisions of the DIP Credit Agreement as provided more fully herein, subject to   the terms and conditions set forth herein.   NOW THEREFORE, in consideration of the mutual agreements contained in the DIP   Credit Agreement and herein and for other good and valuable consideration, the receipt and   sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:   Section 1 Consents   Effective upon the First Amendment Effective Date and the satisfaction of the conditions   set forth in Section 5 hereof, and notwithstanding any provision to the contrary contained in the   DIP Credit Agreement, the Required Lenders hereby (i) consent to the Borrower entering into   the Apple Settlement Amendment, and (ii) agree to waive any Default or Event of Default that   may occur as a result of the Debtors’ entering into, and performance under, the Apple Settlement   Amendment.   Section 2 Amendments to the DIP Credit Agreement.     2.01 Section 1.1 of the DIP Credit Agreement is hereby amended by adding the   following definitions, in appropriate alphabetical order:   “Apple Settlement Amendment” shall have the meaning assigned to such   term in the First Amendment.     

 

2   111132808 v10   “Certain Net Cash Proceeds” shall have the meaning assigned to such term   in Section 7.11(a).   “DIP Amendment Order” has the meaning assigned to such term in the   First Amendment.   “DIP Lender Group” means the Lenders that are represented by Akin   Gump Strauss Hauer & Feld LLP.  If requested by the Administrative Agent, the   Collateral Agent or the Borrower, Akin Gump Strauss Hauer & Feld LLP shall identify   the Lenders that comprise the DIP Lender Group at any given time.   “Excess Furnaces” shall have the meaning assigned to such term in the   Apple Settlement Amendment.   “First Amendment” means that certain Amendment No. 1, dated as of   December 1, 2015, to the Senior Secured Superpriority Debtor-in-Possession Credit   Agreement, by and among the Borrower, the Guarantors, lenders party thereto and the   Agent.   “First Amendment Effective Date” shall have the meaning assigned to   such term in the First Amendment.   “Majority DIP Lender Group” shall have the meaning assigned to such   term in the First Amendment.   “Retained Furnaces” shall have the meaning assigned to such term in the   Apple Settlement Amendment.   “Sale Auction” shall have the meaning assigned to such term in the Apple   Settlement Amendment, including, without limitation, the auction of Tenant’s Property   pursuant to the online auction procedures approved by the Bankruptcy Court [Docket No.   1671]   “Sold Furnaces” shall have the meaning assigned to such term in the   Apple Settlement Amendment.   “Tenant’s Property” shall have the meaning assigned to such term in   Apple Settlement Agreement.   2.02 The following definitions in Section 1.1 of the DIP Credit Agreement are   hereby amended and restated in their entirety as follows:   “Apple Repayment Amount” shall mean the amount of the Net Proceeds   (as defined in the Apple Settlement Amendment) from the sale or disposition of any ASF   Furnace, or proceeds from scrapping any ASF Furnace, net of costs of such scrapping,   that shall be distributed to, or retained by, Apple Inc. and certain of its affiliates pursuant   to and as required by the terms of the Apple Settlement Amendment.     

 

3   111132808 v10   “Apple Settlement Agreement” shall mean the Amended and Restated   Adequate Protection and Settlement Agreement, dated as of December 15, 2014, by and   among Apple Inc., Platypus Development LLC, GTAT Corporation, 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, as   amended by the Apple Settlement Amendment, as in effect on the First Amendment   Effective Date and giving effect to any other amendments in accordance with the terms of   this Agreement.   “Approved Budget” has the meaning set forth in Section 4.01(d).   “Intercompany Agreement” shall mean, collectively, the Intercompany   Settlement Agreement, dated July 20, 2015, by and among GTAT Corporation, GT   Advanced Technologies Limited, and GT Advanced Equipment Holding LLC, as   amended by the First Amendment and Limited Waiver to Intercompany Settlement   Agreement in the form filed with the Bankruptcy Court on November 30, 2015 [Docket   No. 2646], and each other agreement or document entered into pursuant to such   Intercompany Settlement Agreement, including all exhibits thereto.   “Net Cash Proceeds” means:    (a) 100% of Certain Net Cash Proceeds or, in connection with any   Disposition (other than (x) Dispositions pursuant to Sections 7.05(a), (b), (c), (d), (e), (h),   (j), (k), (l), (n), (o), (p) or (q) and (y) Dispositions of all or substantially all of the assets   of Subsidiaries of the Borrower pursuant to Sections 7.04(b)), 100% of the cash proceeds   (without duplication of any Certain Net Cash Proceeds), in each case, received by any   Loan Party or any of its Subsidiaries after the date of the execution of the Commitment   Letter, whether from a single transaction or a series of related transactions, net of the sum   of (i) the principal amount of any Indebtedness that is secured by the applicable asset and   that is required to be repaid in connection with such transaction (other than Indebtedness   under the Loan Documents), together with any applicable premium, penalty, interest and   breakage costs, (ii) the reasonable and customary out-of-pocket expenses incurred or,   reasonably estimated at the time of such Disposition or other transaction resulting in   Certain Net Cash Proceeds (“Other Transactions”), by such Loan Party or such   Subsidiary in connection with such transaction to the extent paid to a Person that is not a   Loan Party; provided that such expenses are disclosed to the Advisors to Lenders and   those Lenders willing to receive such information on a confidential basis without any   cleansing requirement on or prior to the applicable prepayment of the Loans pursuant to   Section 2.05(b); provided further that, if the amount of any estimated expenses pursuant   to this subclause (ii) exceeds the amount of expenses actually required to be paid in cash   in respect of such Disposition or Other Transaction, the aggregate amount of such excess   shall constitute Net Cash Proceeds, (iii) taxes paid or, reasonably estimated at the time of   such Disposition or Other Transaction to be payable, in connection with such Disposition   or Other Transaction within two years of the date of the relevant Disposition or Other   Transaction (including taxes imposed on the distribution or repatriation of any such Net   Cash Proceeds), provided that such taxes are disclosed to the Advisors to Lenders and     

 

4   111132808 v10   those Lenders willing to receive such information on a confidential basis without any   cleansing requirement on or prior to the applicable prepayment of the Loans pursuant to   Section 2.05(b), provided further that, if the amount of any estimated taxes pursuant to   this subclause (iii) exceeds the amount of taxes actually required to be paid in cash in   respect of such Disposition or Other Transaction, the aggregate amount of such excess   shall constitute Net Cash Proceeds, and (iv) amounts provided as a reserve, in accordance   with GAAP, against any liabilities under any indemnification obligations or purchase   price adjustment associated with such Disposition or Other Transaction (provided that, to   the extent and at the time any such amounts are released from such reserve, such amounts   shall constitute Net Cash Proceeds); provided, that no such net cash proceeds received   pursuant to this clause (a) (excluding Certain Net Cash Proceeds) shall constitute Net   Cash Proceeds unless the aggregate amount of all such net cash proceeds shall exceed (x)   to the extent received after the Closing Date, $12,500,000 in the aggregate, in which case,   such excess shall constitute Net Cash Proceeds and (y) to the extent received between the   execution of the Commitment Letter and the Closing Date, $5,000,000 in the aggregate,   in which case, such excess shall constitute Net Cash Proceeds; provided further that, for   the avoidance of doubt, proceeds from any Disposition permitted to be retained by the   Hong Kong Debtor pursuant to the Intercompany Agreement shall not constitute Net   Cash Proceeds.   (b) in connection with any Disposition permitted under Section   7.05(e) (or to the extent applicable, with respect to Dispositions of ASF Furnaces, clauses   (ii) and (iii) of the proviso to Section 7.05), 100% of the cash proceeds received by any   Loan Party or any of its Subsidiaries, whether from a single transaction or a series of   related transactions, and, with respect to Retained Furnaces, net of the sum of fees and   expenses related to shipping and installation (to the extent payable to a Subsidiary of the   Borrower that is not a Loan Party so long as such fees and expenses shall be incurred in   the ordinary course of business and pursuant to arm’s length transactions) incurred, or   reasonably estimated at the time of such Disposition to be incurred, in connection with   the Disposition of such sold furnaces (other than, for the avoidance of doubt, Mesa wind-   down and crating costs); provided that any estimated expenses shall not exceed $26,000   per sold ASF Furnace (except to the extent actually incurred) and all such fees and   expenses related to shipping and installation incurred or estimated to be incurred, in each   case, as of the date of such Disposition shall be disclosed to the Advisors to Lenders and   those Lenders willing to receive such information on a confidential basis without any   cleansing requirement on or prior to the applicable prepayment of the Loans pursuant to   Section 2.05(b); provided further that, if the amount of any estimated expenses pursuant   to this clause (b) exceeds the amount of expenses actually required to be paid in cash in   respect of such Disposition, the aggregate amount of such excess shall constitute Net   Cash Proceeds; provided further that, for the avoidance of doubt, proceeds from the   Disposition of ASF Furnace permitted to be retained by the Hong Kong Debtor pursuant   to the Intercompany Agreement shall not constitute Net Cash Proceeds.    (c) in connection with the incurrence, issuance or sale of any   Indebtedness by any Loan Party or any of its Subsidiaries (other than all Indebtedness   permitted to be incurred under Section 7.02), 100% of the cash proceeds received by any   Loan Party or any of its Subsidiaries, net of any reasonable costs incurred in connection     

 

5   111132808 v10   with such transaction, to the extent paid or payable to non-Affiliates; including (i)   underwriting discounts and commissions, (ii) taxes, (iii) reasonable and customary out-   of-pocket costs and expenses, in each case, incurred by such Loan Party or such   Subsidiary in connection therewith.   (d) in connection with any issuance or sale of Equity Interests   (other than issuance or sales to any officer, employee or director of the Borrower or its   Subsidiaries), 100% of the cash proceeds received by any Loan Party or any of its   Subsidiaries, net of any reasonable costs incurred in connection with such transaction, to   the extent paid or payable to non-Affiliates, including (i) reasonable out-of-pocket   attorney’s fees, investment banking fees, accountants’ fees, underwriting discounts, (ii)   commissions and (iii) other reasonable and customary out-of-pocket costs and expenses   actually incurred by such Loan Party or such Subsidiary in connection therewith.   (e) in connection with any Casualty Event, 100% of the cash insurance   proceeds received after the execution of the Commitment Letter by any Loan Party or any   of its Subsidiaries, net of any reasonable costs incurred in connection with such Casualty   Event, including (i) all reasonable out-of-pocket costs and expenses incurred in   connection with the collection of such proceeds, awards or other compensation and (ii)   taxes paid or reasonably estimated at the time of such Casualty Event to be payable   within two years of the date of the relevant Casualty Event as a result of any gain   recognized in connection with such Casualty Event (including taxes imposed on the   distribution or repatriation of any such Net Cash Proceeds), provided that such taxes are   promptly disclosed to the Advisors to Lenders and those Lenders willing to receive such   information on a confidential basis without any cleansing requirement on or prior to the   applicable prepayment of the Loans pursuant to Section 2.05(b); provided further that, if   the amount of any estimated taxes pursuant to this subclause (ii) exceeds the amount of   taxes actually required to be paid in cash in respect of such Casualty Event, the aggregate   amount of such excess shall constitute Net Cash Proceeds.  Notwithstanding anything to   the contrary in this clause (e), any such portion of the insurance proceeds that are   intended to be applied (and are actually applied) to remediate or repair the ASF Furnaces   damaged by the May 26, 2015 fire at the Debtor’s Mesa Facility shall not be deemed Net   Cash Proceeds for purposes of Section 2.05(b) shall not be deemed Net Cash Proceeds   for purposes of Section 2.05(b).     (f) in connection with any Extraordinary Receipts, 100% of the   cash proceeds received by any Loan Party or any of its Subsidiaries, net of any   reasonable costs incurred in connection with such Extraordinary Receipt, including all   reasonable out-of-pocket costs and expenses incurred in connection with the collection of   such proceeds.   “Required Lenders” means, as of any date of determination, Lenders   holding more than 50% of the aggregate amount of the Loans and Commitments under   the Facility on such date.   2.03 The definitions of “Apple Claim”, “Apple Reduced Repayment Amount”   and “Apple Security Interest” in Section 1.1 of the DIP Credit Agreement are hereby deleted in     

 

6   111132808 v10   their entirety.   2.04 Section 2.05(b)(ii) of the DIP Credit Agreement is hereby amended and   restated in its entirety as follows:   “(ii) (x) Within three (3) Business Days of receipt by any Loan Party   and/or any of its Subsidiaries of any Net Cash Proceeds described in clause (b) of the   definition of Net Cash Proceeds (other than in connection with the scrapping of any ASF   Furnaces), the Borrower shall apply or cause to be applied, payments in an amount equal   to the Net Cash Proceeds received by the Borrower or any of its Subsidiaries in the   following order: first, in an amount equal to the applicable Apple Repayment Amount,   and second, with respect to 20% of any remaining Net Cash Proceeds (x) retained by the   Loan Parties pursuant to the Intercompany Agreement, if the Intercompany Agreement is   applicable to such Net Cash Proceeds or (y) received by the Loan Parties, if the   Intercompany Agreement is not applicable to such Net Cash Proceeds (in each case, after   giving effect to the “first” clause), to prepay the Loans, and (y) within three (3) Business   Days of receipt by any Loan Party and/or any of its Subsidiaries of any Net Cash   Proceeds described in clause (b) of the definition of Net Cash Proceeds with respect to   the scrapping of any Retained Furnaces and any Excess Furnaces, the Borrower shall   apply or cause to be applied, payments in an amount equal to the Net Cash Proceeds   received by the Borrower or any of its Subsidiaries in the following order: first, in an   amount equal to the applicable Apple Repayment Amount (solely to the extent   applicable), and second, with respect to 100% of any remaining Net Cash Proceeds (x)   retained by the Loan Parties pursuant to the Intercompany Agreement, if the   Intercompany Agreement is applicable to such Net Cash Proceeds or (y) received by the   Loan Parties, if the Intercompany Agreement is not applicable to such Net Cash Proceeds   (in each case, after giving effect to the “first” clause), to prepay the Loans,   2.05 Section 6.07 of the DIP Credit Agreement is hereby amended and restated   in its entirety as follows:   “6.07 Maintenance of Insurance.  (a) Maintain with financially sound and   reputable insurance companies not Affiliates of Borrower, in such amounts, with such   deductibles and covering such risks as are customarily (as determined in good faith by a   Responsible Officer of Borrower) carried by companies engaged in similar businesses   and owning similar properties in localities where Borrower or the applicable Subsidiary   operates; provided that the Borrower is not required to comply with this clause (a) in   connection with any Sold Furnaces (prior to the sale or other disposition thereof) or any   Excess Furnaces, and (b) use best efforts to file or assert an insurance claim for any   potential loss, damage or repair necessary for the ASF Furnaces as a result of the May 26,   2015 fire at the Debtor’s Mesa Facility prior to any applicable bar date or deadline under   the relevant insurance policies or applicable Law, as such dates may be extended.”   2.06 Section 6.17 of the DIP Credit Agreement is hereby amended and restated   in its entirety as follows:     

 

7   111132808 v10   “6.17 Milestones.  Comply with the following milestones (unless   extended or waived by the Required Lenders):   (a) On or prior to December 21, 2015, the Debtors shall have filed a   plan of reorganization contemplating a repayment in full in cash of the Facility upon the   consummation of such plan of reorganization (the “Acceptable Plan”) and the disclosure   statement with respect to the Acceptable Plan (the “Disclosure Statement” and together   with the Acceptable Plan, the “Chapter 11 Plan”);   (b) On or prior to January 22, 2016, the Bankruptcy Court shall have   entered an order approving the Disclosure Statement;   (c) On or prior to February 22, 2016, the Bankruptcy Court shall have   entered an order confirming the Chapter 11 Plan; and   (d) On or prior to March 7, 2016, the Effective Date of the Chapter 11   Plan shall have occurred.”   2.07 Section 7.05 of the DIP Credit Agreement is hereby amended and restated   in its entirety as follows:   “7.05 Dispositions.  Make any Disposition or enter into any agreement to   make any Disposition, except:   (a) Dispositions of damaged, obsolete or worn out property, whether   now owned or hereafter acquired, in the ordinary course of business;   (b) Dispositions of inventory in the ordinary course of business;   (c) (i) Dispositions of property by (x) any Loan Party to Borrower or   any Domestic Subsidiary that is a Loan Party or (y) any Subsidiary that is not a Loan   Party to any other Subsidiary that is not a Loan Party or to any Loan Party, provided that   any Hong Kong Subsidiary shall not make any Dispositions to any non-Loan Party or any   Guarantor that is not a Domestic Subsidiary pursuant to this clause (x), and (ii)   Dispositions of furnace components by any Chinese Subsidiary to any Hong Kong   Subsidiary in the ordinary course of business, consistent with past practices and on fair   and reasonable terms as favorable to such Hong Kong Subsidiary as would be obtainable   by such Hong Kong Subsidiary in an arm’s length transaction with a Person other than an   Affiliate;   (d) Dispositions permitted by Section 7.04;   (e) Dispositions of ASF Furnaces pursuant to the Apple Settlement   Agreement (including the scrapping of any Retained Furnaces), provided, except with   respect to Dispositions of Excess Furnaces, 100% of the purchase price for such   Dispositions paid to Borrower or such Subsidiary shall be in cash, and, to the extent   applicable, the intercompany payment obligations arising in connection with such     

 

8   111132808 v10   dispositions of ASF Furnaces pursuant to the terms of the Intercompany Agreement shall   be satisfied pursuant to the terms thereof;    (f) Disposition of assets (other than the ASF Furnaces) located at the   Debtors’ Mesa Facility, provided that except with respect to the disposition of Tenant’s   Property that is either (x) not sold in the Sale Auction as further addressed in Section   7.05(o) or (y) abandoned pursuant to clause (iii) of the proviso to this Section 7.05, 100%   of the purchase price for such Disposition shall be in cash;    (g) Disposition of advance sapphire materials group and Hyperion   business, provided that 100% of the purchase price for such Disposition shall be in cash;   (h) intercompany Dispositions contemplated in the Intercompany   Agreement;   (i) Dispositions by Borrower and its Subsidiaries not otherwise   permitted under this Section 7.05 not to exceed $2,000,000 in the aggregate; provided   that (i) at the time of such Disposition, no Event of Default shall exist or would result   from such Disposition and (ii) with respect any Disposition or a series of related   Disposition, the purchase price for such asset shall be at least 75% in cash;   (j) Dispositions of Cash Equivalents in the ordinary course of   business;   (k) the non-recourse sale or discount by the Borrower or any   Subsidiary of overdue accounts receivable arising in the ordinary course of business in   connection with the compromise or collection thereof;    (l) leases, subleases and non-exclusive licensing or sublicensing in the   ordinary course of business that do not (x) interfere in any material respect with the   business of Borrower or any of the Subsidiaries or (y) secure any Indebtedness;    (m) Involuntary Disposition of assets (to the extent not reimbursed or   expected to be reimbursed by insurance where the carrier has not denied responsibility   and which are not being contested in good faith or where such contest has been denied by   a court of applicable jurisdiction) not to exceed $5,000,000 in the aggregate;   (n) Reclamation Dispositions;   (o) Abandonment to Apple Inc. and its Affiliates free and clear of all   Liens of Tenant’s Property that is not removed from the Mesa Facility within 30 days   from the effective date of the Apple Settlement Amendment;     (p) Dispositions of tenant improvements to the Borrower’s (or its   applicable Subsidiary’s) lease of the premises located in Salem, Massachusetts;   (q) Dispositions consisting of Permitted Hong Kong Debtor Transfers;   and     

 

9   111132808 v10   (r) Dispositions of the Merlin business and the assets related thereto.   provided, however, that (i) except with respect to any Disposition of Sold   Furnaces, Excess Furnaces and Tenant’s Property, any Disposition pursuant to   Section 7.05(a) through Section 7.05(g), Section 7.05(i), Section 7.05(j) and Section   7.05(r) shall be for fair market value, as determined in good faith by Borrower; (ii)   dispositions of Sold Furnaces and any Tenant’s Property in or before the Sale Auction   shall be permitted so long as members of the DIP Lender Group shall have received not   less than 24 hours prior notice of the terms of any such sale or Dispositions, during which   members of the DIP Lender Group that hold over 50% of the aggregate outstanding   principal amount of the Loans held by all members of the DIP Lender Group (the   “Majority DIP Lender Group”) may object to such sales or Dispositions and to the extent   the Majority DIP Lender Group object to such sales or Dispositions, the matter shall be   submitted to the Bankruptcy Court for resolution; and (iii) any Retained Furnaces and   retained Tenant’s Property not sold in or before the Sale Auction may be disposed for   cash, scrapped or abandoned at the option of the Borrower; provided that such   Disposition, except to the extent disposed pursuant to Section 7.05(o) above, shall be   subject to the consent of the Majority DIP Lender Group. Neither the Administrative   Agent nor the Collateral Agent shall have any duty to monitor whether the DIP Lender   Group has received notice as provided in this Section 7.05 or to determine whether the   objecting members or consenting members of the DIP Lender Group constitute the   Majority DIP Lender Group.     2.08 Section 7.10 of the DIP Credit Agreement shall be amended and restated   in its entirety as follows:   “7.10 Budget Variance.     (a) Permit the aggregate amount of the actual (i) operating cash   receipts, plus (ii) proceeds from the sale of non-ASF Furnace assets, plus (iii) proceeds   from the sale of ASF Furnaces received by the Debtors in excess of $10,000,000 (but, in   the case of this clause (iii), only up to an amount equal to the excess (if any) of   $3,400,000 over the amount under clause (ii)) for the period starting from November 1,   2015 through January 31, 2016 to be less than $9,500,000, tested on February 5, 2016.   2.09 Clause (a) of Section 7.11 shall be amended and restated in its entirety as   follows:   “(a) The unrestricted cash and Cash Equivalents of the Borrower and its   Subsidiaries (excluding, without duplication, (i) any cash collateral supporting the L/C   Facility and restricted cash supporting other letters of credit, (ii) any cash and Cash   Equivalents held by any Chinese Subsidiaries, (iii) any cash and Cash Equivalents held   by any direct or indirect Subsidiary of the Borrower that is organized in Hong Kong not   subject to a valid and perfected security interest securing the intercompany notes owed to   GTAT Corporation as contemplated by the Intercompany Agreement, (iv) other than any   cash and Cash Equivalents held by any direct or indirect Subsidiary of the Borrower that   is organized in Hong Kong that is subject to a valid and perfected security interest     

 

10   111132808 v10   securing the intercompany notes owed to GTAT Corporation as contemplated by the   Intercompany Agreement, any cash and Cash Equivalents in excess of $500,000 that are   not held in a deposit account or a securities account subject to a Deposit Account Control   Agreement or a Securities Account Control Agreement, as applicable, (v) any proceeds   from the sale or scrapping of Sold Furnaces, Excess Furnaces and Retained Furnaces, (vi)   any proceeds from the sale or scrapping of Tenant’s Property, (vii) any IRS tax refund,   (viii) any and all non-core asset sale proceeds pursuant to Section 7.05(f), (ix) extension   fees and proceeds from amendments to materials contracts with third parties, including   third party supply agreement with the Hong Kong Debtor; (x) any proceeds from the sale   of the HiCz business and the assets related thereto, (xi) any insurance proceeds as a result   of the May 26, 2015 fire at the Debtor’s Mesa Facility and (xii) proceeds from   Dispositions pursuant to Section 7.05(r) (clauses (vi) through (xii), collectively, “Certain   Net Cash Proceeds”)), to be less than an amount listed below (each, the “Minimum Cash   Amount”) at any time during the period set forth below opposite to such amount.   Minimum Cash Amount Applicable Period   $36,300,000 December 1, 2015 through December 31, 2015   $25,600,000 January 1, 2016 through January 31, 2016   $23,700,000 February 1, 2016 through February 29, 2016   2.10 Section 7.17 shall be amended and restated in its entirety as follows:   “7.17 Apple Settlement Agreement; ASF Furnace Sale; Maximum Cash.   (a) [Reserved];   (b) [Reserved]   (c) Permit any amendment or other modification (other than the Apple   Settlement Amendment) to the Apple Settlement Agreement or the Apple Settlement   Amendment in any manner adverse to the interests of the Lenders; provided that, for the   avoidance of doubt, any amendment or modification to the Apple Settlement Agreement   that further limits or restricts the terms or amount of any Priming Financing (as defined in   the Apple Settlement Agreement) shall be adverse to the Lenders;   (d) Permit any amendment or other modification to the Intercompany   Agreement in any manner adverse to the interests of the Lenders or permit GTAT   Corporation to assign or transfer the Intercompany Notes;   (e) Permit Borrower or any of its Subsidiaries (other than any Chinese   Subsidiary or any Subsidiary organized in Hong Kong) to have more than (x) $2,670,000   of restricted cash, other than cash collateral for the L/C Facility, and (y) $500,000 in the   aggregate of other cash and Cash Equivalents on hand during any consecutive three (3)   Business Day period, in each case, deposited in deposits accounts or securities accounts   which are not subject to a Deposit Account Control Agreement or Securities Account     

 

11   111132808 v10   Control Agreement in favor of the Administrative Agent; provided that the amount in   clause (x) above shall be reduced to the extent any cash collateral securing letters of   credit on the Closing Date (other than the letters of credit under the L/C Facility) is   released in connection with a replacement letter of credit under the L/C Facility or   otherwise expires;    (f)  Permit any direct or indirect Subsidiary of Borrower organized in   the People’s Republic of China (such subsidiaries, the “Chinese Subsidiaries”; it being   understood that the “Chinese Subsidiaries” shall not include any Subsidiary organized in   Hong Kong or Taiwan) to have more than $3,000,000 of aggregate cash or Cash   Equivalents on hand at any time; provided that the Chinese Subsidiaries may have more   than $3,000,000 of aggregate cash and Cash Equivalents to the extent that (i) the Chinese   Subsidiaries and the Loan Parties use commercially reasonable efforts to reduce such   amount to less than $3,000,000 (subject to compliance with applicable Law) and (ii) such   amount in excess of $3,000,000 was obtained by the Chinese Subsidiaries in the ordinary   course of business; or   (g) Permit any amendment or other modification to the L/C Facility in   any manner adverse to the interests of the Lenders; or   (h) [Reserved].”   2.11 Section 8.01(e)(iv) shall be amended and restated in its entirety as follows:   “(iv) a default in the performance or observance of any obligation or   condition and the exercise of material remedies shall occur under the Amended and   Restated Facility Lease Agreement, effective as of December 14, 2015, by and between   Platypus Development LLC and GTAT Corporation until such lease terminates in   accordance with the Apple Settlement Amendment; or”   2.12 Section 8.01(n)(v) shall be amended and restated in its entirety as follows:      “(v) an order of the Bankruptcy Court (or any other court of competent   jurisdiction) shall be entered reversing, staying, vacating or modifying the Final DIP   Order or the DIP Amendment Order, or any Debtor shall file a motion or other pleading   or shall consent to a motion or other pleading filed by any other Person seeking the   foregoing; or”   2.13 Section 8.01(o) shall be amended and restated in its entirety as follows:   “(o) IRS Tax Refund.  The Borrower fails to receive a tax refund from   the IRS in an amount of at least $23,000,000 prior to January 15, 2016.”   Section 3 Representations and Warranties.  The Loan Parties hereby represent   and warrant to the Lenders and the Administrative Agent as follows:   3.01 No Default.  At and as of the date of this Amendment and both prior to   and after giving effect to this Amendment, no Default or Event of Default has occurred and is     

 

12   111132808 v10   continuing.     3.02 Representations and Warranties True and Correct.  At and as of the   date of this Amendment and giving effect to this Amendment, each of the representations and   warranties made by any Loan Party in or pursuant to the Loan Documents shall true and correct   in all material respects (except that such materiality qualifier shall not be applicable to any   representations or warranties that already are qualified or modified as to materiality or "Material   Adverse Effect" in the text thereof, which representations and warranties shall be true and correct   in all respects subject to such qualification) with the same effect as if then made (unless stated to   relate solely to an earlier date, in which case such representations and warranties shall be true   and correct in all material respects (except that such materiality qualifier shall not be applicable   to any representations or warranties that already are qualified or modified as to materiality or   "Material Adverse Effect" in the text thereof, which representations and warranties shall be true   and correct in all respects subject to such qualification) as of such earlier date).   3.03 Power, Authorization; Enforceable Obligations.  Each Loan Party has   the power and authority, and the legal right, to make, deliver and perform the Amendment.  Each   Loan Party has taken all necessary organizational action to authorize the execution, delivery and   performance of the Amendment.  No authorization or approval or other action by, and no notice   to or filing with, any Governmental Authority or other Person (other than those that have been,   or on the First Amendment Effective Date will be, duly obtained or made and that are, or on the   First Amendment Effective Date will be, in full force and effect) is required for the due   execution, delivery or performance by any Loan Party of this Amendment.  The Amendment has   been duly executed and delivered on behalf of each Loan Party.  This Amendment constitutes, a   legal, valid and binding obligation of each Loan Party, enforceable against each such Loan Party   in accordance with its terms, except as enforceability may be limited by applicable bankruptcy,   insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors’   rights generally and by general equitable principles (whether enforcement is sought by   proceedings in equity or at law).   Section 4 Payment.     (a) The Borrower and Guarantors hereby agree to pay, on or prior to   the First Amendment Effective Date, a prepayment premium (the “First Amendment Prepayment   Fee”) equal to 2% of the First Amendment Prepaid Principal Amount (as defined below);   provided that half the First Amendment Prepayment Fee shall be paid upon the First Amendment   Effective Date and the other half of the First Amendment Prepayment Fee shall be payable upon   the earlier of (i) the Effective Date (as defined in that certain Plan Term Sheet dated as of   November 28, 2015 in the form filed with the Bankruptcy Court on November 29, 2016 [Docket   No. 2636] (the “Plan Term Sheet”)) and (ii) repayment in full in cash of the Facility.   (b) The Borrower and Guarantors hereby agree to pay a fee in the   amount of $2,400,000 (the “Lender Professionals Fees”), which fee shall reimburse all   outstanding fees and expenses of Akin Gump Strauss Hauer & Feld LLP, PJT Partners and   Drummond Woodsum LLP (collectively, the “Lender Professionals”) incurred in connection   with the Chapter 11 Cases.  For the avoidance of doubt, this amount is in addition to any   amounts already owed (if any) under the Final DIP Order.  $500,000 of the Lender Professionals     

 

13   111132808 v10   Fees shall be payable upon the First Amendment Effective Date, and the remaining $1,900,000   shall be paid upon the effective date of a plan of reorganization.   Section 5 Conditions.  This Amendment shall become effective and be deemed   effective as of the date when, and only when, all of the following conditions have been satisfied   as determined in the Agent's and the Required Lenders' discretion (the date of such effectiveness   being herein called the "First Amendment Effective Date"):   (a) Amendment.  The Agent shall have received this Amendment,   duly executed by the Borrower, the Guarantors, the Required Lenders and the Administrative   Agent;    (b) Apple Settlement Amendment.     (i) An order approving the Debtors’ entry into the Apple   Settlement Amendment shall have been entered by the Bankruptcy Court, shall be in full force   and effect and shall not be subject to any pending stay.   (ii) The Apple Settlement Amendment shall have been   consummated and shall be in full force and effect and shall not have been amended, modified,   waived or terminated.   (c) Intercompany Agreement Amendment.  An order approving the   Debtors’ entry into the First Amendment and Limited Waiver to Intercompany Settlement   Agreement in the form filed with the Bankruptcy Court on November 30, 2015 [Docket No.   2646] shall have been entered by the Bankruptcy Court, shall be in full force and effect and shall   not be subject to any pending stay.   (d) DIP Amendment Order.  An order authorizing the Loan Parties’   entry into this First Amendment and authorizing the Loan Parties to take such actions as required   by this First Amendment (the “DIP Amendment Order”) shall have been entered by the   Bankruptcy Court, shall be in full force and effect and shall not be subject to any pending stay.   (e) Prepayment.  The Borrower shall have prepaid, in immediately   available funds, to the Administrative Agent, to be distributed pro rata to the Lenders, the   outstanding Loans in an aggregate principal amount of $45,000,000 (the “First Amendment   Prepaid Principal Amount”); and the Borrower shall have paid, in immediately available funds,   to the Administrative Agent, to be distributed pro rata to the Lenders, half of the First   Amendment Prepayment Fee.   (f) Other Fees and Expenses.     (i) The Borrower and Guarantor shall have paid to the Lenders   $500,000 of the Lender Professionals Fees.   (ii) The Agent and the Lenders shall have been paid all fees,   costs and expenses then payable on or before the First Amendment Effective Date pursuant to   Section 11.04(a) of the DIP Credit Agreement and paragraph 30 of the Final DIP Order.     

 

14   111132808 v10   Section 6 Miscellaneous.   6.01 Continuing Effect.  Except as specifically provided herein, the DIP Credit   Agreement and the other Loan Documents shall remain in full force and effect in accordance   with their respective terms and are hereby ratified and confirmed in all respects.   6.02 No Waiver.  This Amendment shall be effective only in this specific   instance for the specific purpose set forth herein.  Except as otherwise expressly provided herein,   the DIP Credit Agreement and the other Loan Documents are, and shall continue to be, in full   force and effect and are hereby ratified and confirmed in all respects.  Except as expressly   provided herein, the execution, delivery and effectiveness of this Amendment shall not operate   as an amendment or waiver of any right, power or remedy of the Agent or the Lenders under the   DIP Credit Agreement or any other Loan Document, nor constitute an amendment or waiver of   any provision of the DIP Credit Agreement or any other Loan Document, nor constitute a waiver   of, or consent to, any Default or Event of Default now existing or hereafter arising under the DIP   Credit Agreement or any other Loan Document and the Agent and the Lenders expressly reserve   all of their rights and remedies under the DIP Credit Agreement and the other Loan Documents,   under applicable law or otherwise.   6.03 Loan Document.  This Amendment is a Loan Document under and as   defined in the DIP Credit Agreement.   6.04 Governing Law.  THIS AMENDMENT AND THE RIGHTS AND   OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND   SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF   THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES   (OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL   OBLIGATIONS LAW) THEREOF, EXCEPT AS GOVERNED BY THE BANKRUPTCY   CODE.   6.05 Counterparts.  This Amendment may be executed in any number of   counterparts and by different parties on separate counterparts, each of which, when executed and   delivered, shall be deemed to be an original, and all of which, when taken together, shall   constitute but one and the same Amendment.  Delivery of an executed counterpart of a signature   page of this Amendment by telecopy or other electronic imaging means shall be effective as   delivery of a manually executed counterpart of this Amendment.     6.06 Headings.  Headings and numbers have been set forth herein for   convenience only.  Unless the contrary is compelled by the context, everything contained in each   Section applies equally to this entire Amendment.   6.07 Binding Effect; Assignment.  This Amendment shall be binding upon   and inure to the benefit of the Loan Parties, the Administrative Agent and the Lenders and their   respective successors and assigns in accordance with the terms of the DIP Credit Agreement.   6.08 Integration.  This Amendment, including the DIP Credit Agreement, and   the other Loan Documents incorporate all negotiations of the parties hereto with respect to the   subject matter hereof and thereof and are the final expression and agreement of the parties hereto     

 

15   111132808 v10   and thereto with respect to the subject matter hereof and thereof.  This Amendment, including   the DIP Credit Agreement, and the other Loan Documents represent the agreement of the parties   hereto with respect to the subject matter hereof and thereof, and there are no promises,   undertakings, representations or warranties by any party hereto or thereto relative to the subject   matter hereof or thereof not expressly set forth or referred to herein or therein.   6.09 Guarantor Acknowledgment.  Each of the undersigned Guarantors   hereby acknowledges and agrees to the terms of this Amendment and confirms that the Guaranty   and any other Loan Document to which such Guarantor is a party remains in full force and effect   after giving effect to this Amendment and continues to be the valid and binding obligation of the   undersigned, enforceable against the undersigned in accordance with its terms.   6.10 Reaffirmation; Ratification.  Each of Loan Parties hereby reaffirms its   obligations under each Loan Document to which it is a party.  Each Loan Party hereby further   ratifies and reaffirms the validity and enforceability of all of the Liens and security interests   heretofore granted, pursuant to and in connection with the Collateral Documents or any other   Loan Document as collateral security for the obligations under the Loan Documents in   accordance with their respective terms, and acknowledges that all of such Liens and security   interests, and all Collateral heretofore pledged as security for such obligations, continue to be   and remain collateral for such obligations from and after the date hereof.   6.11 Expenses.  The Borrowers will pay all fees, costs and expenses pursuant   to Section 11.04 of the DIP Credit Agreement.   6.12 Instruction to Administrative Agent and Collateral Agent.    Each of   the Lenders signatory hereto (constituting Required Lenders, and for the purposes of Section   2.08 hereof, constituting Lenders holding more than 60% of the aggregate amount of Loans and   Commitments under the Facility on the date hereof) directs the Administrative Agent and the   Collateral Agent to execute this Amendment and authorize the Administrative Agent and the   Collateral Agent to take action as agent on its behalf and to exercise such powers and discretion   under the DIP Credit Agreement and the other Loan Documents as are delegated to the   Administrative Agent and the Collateral Agent  by the terms thereof, together with such powers   and discretion as are reasonably incidental thereto.  The Borrower and Lenders agree that the   indemnifications provided in Section 11.04 of the Credit Agreement apply to the foregoing   instruction and the execution of this Amendment.   [Remainder of page intentionally left blank.]     

 

   [Signature Page to DIP Amendment]   IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be   executed by their respective officers thereunto duly authorized, as of the date first above written.   BORROWER:      GT ADVANCED TECHNOLOGIES INC.      By: /s/Hoil Kim    Name: Hoil Kim    Title: Vice President, Chief Administrative    Officer, General Counsel and Secretary        

 

[Signature Page to DIP Amendment]      GUARANTORS:      GTAT CORPORATION       /s/Hoil Kim     Hoil Kim     Vice President, Chief Administrative    Officer, General Counsel and Secretary                       GT ADVANCED EQUIPMENT HOLDING LLC       /s/Michele Rayos     Michele Rayos     Treasurer      GT EQUIPMENT HOLDINGS, INC.       /s/Hoil Kim     Hoil Kim     Vice President and Secretary         LINDBERGH ACQUISITION CORP.       /s/ Hoil Kim    Hoil Kim     Vice President, General Counsel and     Secretary           

 

[Signature Page to DIP Amendment]      GUARANTORS:         GT SAPPHIRE SYSTEMS HOLDING LLC       /s/Hoil Kim     Hoil Kim     Vice President, General Counsel and     Secretary         GT ADVANCED CZ LLC       /s/Hoil Kim     Hoil Kim     Vice President, General Counsel and     Secretary         GT SAPPHIRE SYSTEMS GROUP LLC       /s/Hoil Kim     Hoil Kim     Vice President, General Counsel and     Secretary         GT ADVANCED TECHNOLOGIES   LUXEMBOURG S.À R.L.       /s/Hoil Kim     Hoil Kim     Manager         GTAT IP HOLDINGS LLC       /s/Hoil Kim     Hoil Kim     Vice President, General Counsel and     Secretary           

 

[Signature Page to DIP Amendment]      ADMINISTRATIVE AGENT:         CANTOR FITZGERALD SECURITIES, as   Administrative Agent         By: /s/James Bond   Name: James Bond   Title: Chief Operating Officer         COLLATERAL AGENT:         CANTOR FITZGERALD SECURITIES, as   Collateral Agent         By: /s/James Bond   Name: James Bond   Title: Chief Operating Officer        

 

[Signature Page to DIP Amendment]      LENDER:      WBOX 2014-3 LTD.         By: /s/Mark Strefling   Name: Mark Strefling   Title: General Counsel and Chief Operating    Officer        

 

   [Signature Page to DIP Amendment]   LENDER:      ARISTEIA CAPITAL L.L.C.   by Aristeia Capital, L.L.C., its Investment Manager         By: /s/William R. Techou   Name: William R. Techou   Title: Manager         By: /s/Robert H. Lynch, Jr.    Name: Robert H. Lynch Jr.    Title: Manager      COMPASS ESMA, L.P. .   by Aristeia Capital, L.L.C., its Investment Manager         By: /s/William R. Techou   Name: William R. Techou   Title: Manager      By: /s/Robert Lynch    Name: Robert Lynch    Title: Manager            COMPASS TSMA, L.P. .   by Aristeia Capital, L.L.C., its Investment Manager      By: /s/William R. Techou   Name: William R. Techou   Title: Manager      By: /s/Robert Lynch    Name: Robert Lynch    Title: Manager                 

 

   [Signature Page to DIP Amendment]   LENDER:      QPB HOLDINGS LTD.      By: /s/Thomas O’Grady   Name: Thomas O’Grady   Title: Attorney-in-Fact        

 

   [Signature Page to DIP Amendment]   LENDER:      WFF CAYMAN II LTD.   By Wolverine Asset Management, LLC, its   investment advisor         By: /s/Ken Nadel   Name: Ken Nadel   Title: Chief Operating Officer        

 

   [Signature Page to DIP Amendment]   LENDER:      JEFFERIES LEVERAGED CREDIT PRODUCTS, LLC         By: /s/William P. McLaughlin   Name: William P. McLaughlin   Title: SVP        

 

   [Signature Page to DIP Amendment]   LENDER:      PINE RIVER DEERWOOD FUND LTD.      By: Pine River Capital Management L.P.,   its Investment Manager      By: /s/Jeff Stolt   Name: Jeff Stolt   Title: Chief Financial Officer          PINE RIVER FIXED INCOME MASTER FUND LTD.      By: Pine River Capital Management L.P.,   its Investment Manager         By: /s/Jeff Stolt   Name: Jeff Stolt   Title: Chief Financial Officer         PINE RIVER CONVERTIBLES MASTER FUND LTD.      By: Pine River Capital Management L.P.,   its Investment Manager         By: /s/Jeff Stolt   Name: Jeff Stolt   Title: Chief Financial Officer         PINE RIVER MASTER FUND LTD.      By: Pine River Capital Management L.P.,   its Investment Manager         By: /s/Jeff Stolt   Name: Jeff Stolt   Title: Chief Financial Officer        

 

   [Signature Page to DIP Amendment]   LENDER:      AQR FUNDS – AQR DIVERSIFIED   ARBITRAGE         By: /s/Brad Asness   Name: Brad Assness   Title: Vice President          HARE & CO.   o/b/o Advanced Series Trust – AST Academic   Strategies Asset Allocation Portfolio      By:  AQR Capital Management, LLC, as   Investment Manager, solely o/b/o its Diversified   Arbitrage Investment Sleeve         By: /s/Bradley D. Asness   Name: Bradley D. Asness   Title: Principal & Chief Legal Officer           

 

   [Signature Page to DIP Amendment]      LENDER:      NEW GENERATION LIMITED PARTNERSHIP         By: /s/Baily Dent   Name: Baily Dent   Title: Partner      NEW GENERATION TURNAROUND FUND   (BERMUDA) LP         By: /s/Baily Dent   Name: Baily Dent   Title: Partner         BRANDYTRUST MULTI-STRATEGY NGA LLC         By: /s/Baily Dent   Name: Baily Dent   Title: Partner      SCIENS GROUP ALTERNATIVE STRATEGIES PCC   LIMITED acting in respect of its Olive Zeta Cell         By: /s/Baily Dent   Name: Baily Dent   Title: Partner      P NEW GENERATION TURNAROUND IE a fund of   Permal Managed Account Platform ICAV (f/k/a PERMAL   NEW GENERATION TURNAROUND FUND LTD)         By: /s/Baily Dent   Name: Baily Dent   Title: Partner     

 

[Signature Page to DIP Credit Agreement]   LENDER:      LATIGO ULTRA MASTER FUND, LTD   LATIGO ADVISORS MASTER FUND, LTD   CROWN MANAGED ACCOUNTS SPC acting for   and on behalf of Crown/Latigo Segregated portfolio      By: Latigo Partners LP         By: /s/Scott McCabe    Name: Scott McCabe   Title: Authorized Signatory      LATIGO PARTNERS MA2, L.P.      By: Latigo GP LLC         By: /s/Scott McCabe   Name: Scott McCabe   Title: Authorized Signatory

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