Document:

EX 4.2

    EXHIBIT
      4.2

    

      EXECUTION
        VERSION

    

     

    ESCROW
      AGREEMENT

     

    This
      Escrow Agreement (as amended or modified from time to time and including any
      and
      all written instructions given to the Escrow Agent (as defined below) pursuant
      hereto, this “Escrow
      Agreement”)
      is
      made and entered into as of December 19, 2006 by and between Acquicor Technology
      Inc., a Delaware corporation (the “Company”),
      U.S.
      Bank National Association, a national banking association, as the trustee under
      the Indenture (as defined below) (the “Trustee”),
      U.S.
      Bank National Association, a banking association, acting in the capacity of
      collateral agent for the Holders (as defined below) (the “Collateral
      Agent”
and,
      together with the Company, the “Other
      Parties”),
      U.S.
      Bank National Association, a national banking association, as escrow agent
      and
      the securities intermediary and bank for the Escrow Account (as defined below)
      (in such capacities, the “Escrow
      Agent”).
      Capitalized terms used herein and not otherwise defined herein shall have the
      meanings set forth therefore in the Indenture. 

     

    WITNESSETH:

     

    WHEREAS,
      this
      Escrow Agreement is being entered into in connection with the Purchase
      Agreement, dated as of December 18, 2006 (the “Purchase
      Agreement”),
      by
      and among the Company and CRT Capital Group LLC and Needham & Company, LLC
      as the initial purchasers (the “Initial
      Purchasers”);

     

    WHEREAS,
      pursuant
      to the Purchase Agreement, the Company has agreed to issue and sell to the
      Initial Purchasers, for resale by the Initial Purchasers under Rule 144A of
      the
      Securities Act of 1933, as amended (the “Offering”),
      $145.0 million in aggregate principal amount of its 8% Convertible Senior Notes
      due December 31, 2011 (the “Notes”);

     

    WHEREAS,
      the
      Company and the Trustee have entered into an Indenture, dated as of the date
      hereof (as amended, supplemented, restated or otherwise modified from time
      to
      time, the “Indenture”),
      pursuant to which the Company issued the Notes;

     

    WHEREAS,
      in
      connection with the Offering, the Company expects to acquire Jazz Semiconductor,
      Inc. (“Jazz”)
      by the
      merger of Joy Acquisition Corp., a wholly-owned subsidiary of the Company,
      into
      Jazz on or prior to May 31, 2007 (the “Acquisition”);

     

    WHEREAS,
      concurrently
      with the closing of the Offering, the Company has agreed with the Initial
      Purchasers to place in escrow the gross proceeds of the Offering, including
      the
      Initial Purchasers’ discount, to be held pursuant to and subject to the terms
      and conditions of this Escrow Agreement and the Indenture;

     

    WHEREAS,
      in
      order to secure certain obligations of the Company to the holders of the Notes
      (the “Holders”),
      the
      Company has agreed to grant a security interest in all of the Company’s right,
      title and interest in, to and under the Collateral (as defined in that certain
      Pledge and Security Agreement (the “Pledge
      Agreement”)
      by and
      between the Company and the Collateral Agent.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    WHEREAS,
      upon
      the
      satisfaction of the conditions set forth herein, the Escrow Agent shall release
      and deliver the funds in the Escrow Account as set forth herein;
      and

     

    WHEREAS,
      the
      Company wishes to engage the Escrow Agent to act, and the Escrow Agent
      is willing
      to act, as escrow agent hereunder and, in that capacity, to hold, administer
      and
      distribute the amounts deposited in escrow hereunder in accordance with, and
      subject to, the terms of this Escrow Agreement.

     

    NOW,
      THEREFORE, in
      consideration of the premises and mutual covenants and agreements contained
      herein, the parties hereto hereby agree as follows:

     

    1.  Appointment
      of the Escrow Agent.
      Each of
      the Company and
      the
      Trustee hereby appoints U.S. Bank National Association, a national banking
      association, as the escrow agent under this Escrow Agreement, and the Escrow
      Agent hereby accepts such appointment.

     

    2.  The
      Deposit; Establishment of Escrow Account.
      The
      Company shall deliver, or cause the Initial Purchasers to deliver, to the Escrow
      Agent (i) concurrently with the execution and delivery of this Escrow Agreement,
      the gross proceeds from the issuance and sale of the Notes on the date hereof
      (the “Initial
      Deposit”),
      and
      (ii) upon the issuance and sale of any additional Notes prior to termination
      of
      this Agreement, the gross proceeds from such issuance and sale (the
“Subsequent
      Deposit”,
      and
      together with the Initial Deposit, the “Deposits”),
      in
      the case of each of clauses (i) and (ii), to be held by the Escrow Agent in
      accordance with the terms hereof. Subject to and in accordance with the terms
      and conditions hereof, the Escrow Agent agrees to hold the Deposits in an
      account established with the Escrow Agent in the name of the Company, as
      entitlement holder, and designated as Account No. 108067001, Reference:
“Acquicor 8% Convertible Senior Notes” (the “Escrow
      Account”)
      and to
      administer the Deposits in accordance with the terms of this Escrow Agreement,
      including without limitation, holding in escrow, investing and reinvesting,
      and
      releasing or distributing the Deposits. It is hereby expressly stipulated and
      agreed that all interest and other earnings on the Deposits shall become a
      part
      of the Deposits for all purposes, and that all losses resulting from the
      investment or reinvestment thereof from time to time shall from the time of
      such
      loss no longer constitute part of the Deposits. The Company hereby acknowledges
      and agrees that the Deposits cannot be released unless the conditions of Section
      5(a), 5(b), 5(c) or 5(d), as the case may be, of this Escrow Agreement are
      satisfied. The Escrow Account shall be deemed to be a “Securities Account” as
      defined in Section 8-501 of the New York Uniform Commercial Code (the
“NYUCC”)
      and,
      for purposes of Sections 9-305 and 8-110(e) of the NYUCC, the jurisdiction
      of
      Escrow Agent shall be the State of New York; provided that if the Escrow Account
      is deemed to be a “Deposit Account” as defined in Section 9-102(a)(29) then, for
      purposes of Section 9-304 of the NYUCC, the jurisdiction of the Escrow Agent
      shall be New York.

     

    3.  Acknowledgement
      of Security Interest.
      The
      Escrow Agent hereby acknowledges the security interest of the Collateral Agent
      in the Collateral. The Escrow Agent agrees to take all such actions directed
      by
      the Collateral Agent to perfect such security interest. In connection with
      the
      perfection of such security interests, the Company, the Collateral Agent, the
      Trustee and the Escrow Agent have entered into that certain Control Agreement,
      dated as of the date hereof (the “Control
      Agreement”).
      Notwithstanding anything to the contrary, the Escrow Agreement, and the Escrow
      Agent’s rights, duties and obligations hereunder, shall be subject to the
      Control Agreement. 

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

     

    4.  Investment
      of the Deposits. The
      Escrow Agent shall invest and reinvest the Deposits in (a) securities that
      are
      direct obligations of, or guaranteed as to principal and interest by, the United
      States government or any agency or instrumentality of the United States
      government (provided
      that
      the
      full faith and credit of the United States is pledged in support of those
      securities) having maturities of not more than six months from the date of
      acquisition or (b) money market funds meeting certain conditions under Rule
      2a-7
      (or any successor rule) promulgated under the Investment Company Act of 1940
      as
      determined by the Company (it being agreed that First American Government
      Obligations Fund, Class D, CUSIP #31846V732 meets
      such criteria) (both
      (a)
      and (b), the “Approved
      Investment Options”),
      as may
      be instructed in writing by the Company; provided,
      however, that
      if
      the Collateral Agent or the Company notifies the Escrow Agent that an event
      has
      occurred that constitutes an Event of Default under the Indenture and said
      event
      shall be continuing, the Company’s right to instruct the Escrow Agent regarding
      the investment of the Deposits shall cease and the Escrow Agent shall no longer
      take direction from the Company and shall instead invest and reinvest the
      Deposits in such Approved Investment Options instructed in writing by the
      Collateral Agent. Such written instructions, if any, referred to in the
      foregoing sentence shall specify the type and identity of the Approved
      Investment Options to be purchased and/or sold and shall also include the name
      of the broker-dealer, if any, that the Company directs the Escrow Agent to
      use
      in respect of such investment, any particular settlement procedures required,
      if
      any (which settlement procedures shall be consistent with industry standards
      and
      practices), and such other information as the Escrow Agent may require. The
      Escrow Agent shall not be liable for failure to invest or reinvest funds absent
      sufficient written direction. Unless the Escrow Agent is otherwise directed
      in
      such written instructions, the Escrow Agent may use a broker-dealer of its
      own
      selection, including a broker-dealer owned by or affiliated with the Escrow
      Agent or any of its affiliates. The Escrow Agent or any of its affiliates may
      receive compensation with respect to any investment directed hereunder. It
      is
      expressly agreed and understood by the parties hereto that the Escrow Agent
      shall not in any way whatsoever be liable for losses on any investments,
      including, but not limited to, losses from market risks due to premature
      liquidation or resulting arm other actions taken pursuant to this Escrow
      Agreement.

     

    Receipt,
      investment and reinvestment of the Deposits shall be confirmed by the Escrow
      Agent to the Company as soon as practicable by account statement, and any
      discrepancies in any such account statement shall be noted by the Company to
      the
      Escrow Agent within thirty (30) calendar days after receipt thereof. Failure
      to
      inform the Escrow Agent in writing of any discrepancies in any such account
      statement within said 30-day period shall conclusively be deemed confirmation
      of
      such account statement in its entirety. For purposes of this paragraph, (a)
      each
      account statement shall be deemed to have been received by the party to whom
      it
      is directed on the earlier to occur of (i) the actual receipt thereof and (ii)
      three (3) “Business Days” (as defined below) after the deposit thereof in the
      United States mail, postage prepaid (registered or certified, return receipt
      requested) and (b) the term “Business
      Day”
shall
      mean any day of the year, excluding Saturday, Sunday and any other day on which
      national banks are required or authorized to close in New York, New
      York.

     

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

     

    5.  Disbursement
      of the Deposits.
      The
      Escrow Agent is hereby authorized to make disbursements of the Deposits only
      as
      follows:

     

    (a)  Upon
      (i)
      receipt of an officer’s certificate from the Company addressed to the Trustee
      (and indicating thereon that a copy has been provided to the
      Escrow Agent, the Collateral Agent and the Initial Purchasers) substantially
      in
      the form of Annex
      A
      hereto
      (the “Officer’s
      Certificate”),
      specifying the wire transfer instructions for (A) that portion of the Deposits
      representing the amount of funds to be applied towards the payment of the
      purchase price for the Acquisition and other costs payable in connection with
      the Acquisition, (B) that portion of the Deposits representing the amounts
      payable by the Company to the Initial Purchasers pursuant to the Purchase
      Agreement, which amount shall be equal to 3.5% of the gross proceeds from the
      sale and issuance of the Notes that were deposited into the Escrow Account,
      and
      (C) the balance of the Deposits, if any, in excess of the amount specified
      in
      clauses (a)(i)(A) and (a)(i)(B) of this Section 5; (ii) receipt of instructions
      from the Trustee confirming the disbursement of the Deposits in accordance
      with
      the Officer’s Certificate; and (iii) solely with respect to the portion of the
      Deposits in (B) above, receipt of instructions from the Initial Purchasers
      confirming the disbursement of such portion of the Deposit in accordance with
      the Officer’s Certificate.

     

    (b)  In
      the
      event the Deposits are not released in accordance with Section 5(a) hereof
      on or
      prior to May 31, 2007 or if prior thereto the Company’s stockholders shall have
      voted not to approve the Acquisition or the Authorized Share Increase (as
      confirmed by an officer’s certificate of the Company), the Escrow Agent shall
      release the Deposits to the Trustee upon receipt of (i) a written notice from
      the Company to the Trustee (with a copy to the Escrow Agent, the Collateral
      Agent and the Initial Purchasers), substantially in the form of Annex
      B
      hereto
      (the “Notice”),
      specifying the wire transfer instructions for the Deposits to be used to effect
      the Special Mandatory Redemption (as defined in the Indenture); and (ii) receipt
      of instructions from the Trustee confirming the disbursement of the Deposits
      in
      accordance with the Notice.

     

    (c)  The
      Escrow Agent shall make all transfers pursuant to this Section 5 as promptly
      as
      practicable after receipt of the Officers’ Certificates and Notices set forth
      above, and in no event later than the next business day.

     

    (d)  Notwithstanding
      the foregoing, if the Collateral Agent or the Company notifies the Escrow Agent
      that an event has occurred that constitutes an Event of Default under the
      Indenture and said event shall be continuing, then the Company’s right to
      authorize disbursements shall cease and the Escrow Agent shall no longer take
      direction from the Company and the Pledge Agreement shall govern the disposition
      of the Deposits.

     

    6.  Tax
      Matters. 

     

    (a)  The
      Company shall
      provide the Escrow Agent with its taxpayer identification number documented
      by
      an appropriate Form W-8 or Form W-9 upon or prior to the execution of this
      Escrow Agreement. Failure to provide such forms may prevent or delay
      disbursements from the Deposits and may also result in the assessment of a
      penalty and the Escrow Agent’s being required to withhold tax on any interest or
      other income earned on the Deposits. Any payments of income shall be subject
      to
      applicable withholding regulations then in force in the United States or any
      other jurisdiction, as applicable. 

     

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

     

    (b)  The
      Company agrees that, for purposes of federal and other taxes based on income,
      the Company will be treated as the owner of the Deposits, the Company will
      report all income, if any, that is earned on, or derived from, the Deposits
      as
      its income in the taxable year or years in which such income is properly
      includible and pay any taxes attributable thereto.

     

    7.  Scope
      of Undertaking.
      The
      Escrow Agent’s duties and responsibilities in connection with this Escrow
      Agreement shall be purely ministerial and shall be limited to those expressly
      set forth in this Escrow Agreement. The Escrow Agent is not a principal,
      participant or beneficiary in any transaction underlying this Escrow Agreement
      and shall have no duty to inquire beyond the terms and provisions hereof. The
      Escrow Agent shall have no responsibility or obligation of any kind in
      connection with this Escrow Agreement or the Deposits and shall not be required
      to deliver the Deposits or any part thereof or take any action with respect
      to
      any matters that might arise in connection therewith, other than to receive,
      hold, invest, reinvest and deliver the Deposits as expressly herein provided.
      Without limiting the generality of the foregoing, it is hereby expressly agreed
      and stipulated by the parties hereto that the Escrow Agent shall not be required
      to exercise any discretion hereunder and shall have no investment or management
      responsibility and, accordingly, shall have no duty to, or liability for its
      failure to, provide investment recommendations or investment advice to the
      Other
      Parties or any of them. The Escrow Agent shall not be liable for any error
      in
      judgment, any act or omission, any mistake of law or fact, or for anything
      it
      may do or refrain from doing in connection herewith, except for, subject to
      Section 8 hereof, its own willful misconduct or gross negligence. It is the
      intention of the parties hereto that the Escrow Agent shall never be required
      to
      use, advance or risk its own funds or otherwise incur financial liability in
      the
      performance of any of its duties or the exercise of any of its rights and powers
      hereunder.

     

    8.  Reliance;
      Liability.
      The
      Escrow Agent may rely on, and shall not be liable for acting or refraining
      from
      acting in accordance with, any written notice, instruction or request or other
      paper furnished to it hereunder or pursuant hereto and believed by it in good
      faith to be genuine and to have been signed or presented by the proper party
      or
      parties. The Escrow Agent shall be responsible for holding, investing,
      reinvesting and disbursing the Deposits pursuant to this Escrow Agreement;
      provided,
      however, that
      in
      no event shall the Escrow Agent be liable for any lost profits, lost savings
      or
      other special, exemplary, consequential or incidental damages in excess of
      the
      Escrow Agent’s fee hereunder; and provided,
      further, that
      the
      Escrow Agent shall have no liability for any loss arising from any cause beyond
      its control, including, but not limited to, the following: (a) acts of God,
      force majeure, including, without limitation, war (whether declared or
      existing), revolution, insurrection, riot, civil commotion, accident, fire,
      explosion, stoppage of labor, strikes and other differences with employees;
      (b)
      the act, failure or neglect of any Other Party or any agent or correspondent
      or
      any other person selected by the Escrow Agent; (c) any delay, error, omission
      or
      default of any mail, courier, telegraph, cable or wireless agency or operator;
      or (d) the acts or edicts of any government or governmental agency or other
      group or entity exercising governmental powers. The Escrow Agent is not
      responsible or liable in any manner whatsoever for the sufficiency, correctness,
      genuineness or validity of the subject matter of this Escrow Agreement or any
      part hereof or for the transaction or transactions requiring or underlying
      the
      execution of this Escrow Agreement, the form or execution hereof or for the
      identity or authority of any person executing this Escrow Agreement or any
      part
      hereof or depositing the Deposits.

     

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

     

    9.  Right
      of Interpleader. Should
      any controversy arise involving the parties hereto or any of them or any other
      person, firm or entity with respect to this Escrow Agreement or the Deposits,
      or
      should a substitute escrow agent fail to be designated as provided in Section
      16
      hereof, or if the Escrow Agent should be in doubt as to what action to take,
      the
      Escrow Agent shall have the right, but not the obligation, to institute a
      petition for interpleader in any court of competent
      jurisdiction to determine the rights of the parties hereto. In the event the
      Escrow Agent is a party to any dispute, the Escrow Agent shall have the
      additional right to refer such controversy to binding arbitration. Should a
      petition for interpleader be instituted, or should the Escrow Agent be
      threatened with litigation or become involved in litigation or binding
      arbitration in any manner whatsoever in connection with this Escrow Agreement
      or
      the Deposits, the Company hereby agrees to reimburse the Escrow Agent for its
      reasonable attorneys’ fees and any and all other expenses, losses, costs and
      damages incurred by the Escrow Agent in connection with or resulting from such
      threatened or actual litigation or arbitration prior to any disbursement
      hereunder, except as such fees, expenses, losses, costs and damages result
      from
      the willful misconduct or gross negligence of the Escrow Agent.

     

    10.  Indemnification.
      The
      Company hereby indemnifies the Escrow Agent, its officers, directors, partners,
      employees and agents (each herein called an “Indemnified
      Party”)
      against, and holds each Indemnified Party harmless from, any and all reasonable
      expenses, including, without limitation, attorneys’ fees and court costs,
      losses, costs, damages and claims, including, but not limited to, costs of
      investigation, litigation and arbitration, tax liability and loss on investments
      suffered or incurred by any Indemnified Party in connection with or arising
      from
      or out of this Escrow Agreement, except such acts or omissions as may result
      from the willful misconduct or gross negligence of such Indemnified
      Party.

     

    11.  Compensation
      and Reimbursement of Expenses.
      The
      Company hereby agrees to pay the Escrow Agent for its services hereunder in
      accordance with the Escrow Agent’s fee schedule as attached hereto as
Schedule
      A
      and to
      pay all expenses incurred by the Escrow Agent in connection with the performance
      of its duties and enforcement of its rights hereunder and otherwise in
      connection with the preparation, operation, administration and enforcement
      of
      this Escrow Agreement, including, without limitation, reasonable attorneys’
fees, brokerage costs and other reasonable and related expenses incurred by
      the
      Escrow Agent.

     

    12.  Funds
      Transfer.
      In the
      event funds transfer instructions are given (other than in writing at the time
      of execution of this Escrow Agreement), whether in writing, by facsimile, or
      otherwise, the Escrow Agent is authorized, but not obligated, to seek
      confirmation of such instructions by telephone call-back to each of the persons
      designated on Schedule
      B
      hereto,
      and the Escrow Agent may rely upon the confirmations of anyone purporting to
      be
      the person so designated. The persons and telephone numbers for call-backs
      may
      be changed only in writing actually received and acknowledged by the Escrow
      Agent. The parties to this Escrow Agreement acknowledge that undertaking funds
      transfers based upon given instructions without call-back instruction is
      commercially reasonable.

     

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

     

    It
      is
      understood that the Escrow Agent and the beneficiary’s bank in any funds
      transfer may rely solely upon any account numbers or similar identifying number
      provided by either of the other parties hereto to identify (i) the beneficiary,
      (ii) the beneficiary’s bank or (iii) an intermediary bank. The Escrow Agent may
      apply any of the escrowed funds for any payment order it executes using any
      such
      identifying number, even where its use may result in a person other than the
      beneficiary being paid, or the transfer of funds to a bank other than the
      beneficiary’s bank or an intermediary bank, designated.

     

    13.  Notices.
      Any
      notice or other communication required or permitted to be given under this
      Escrow Agreement by any party hereto to any other party hereto shall be
      considered as properly given if in writing and (a) delivered against receipt
      therefor, (b) mailed by registered or certified mail, return receipt requested
      and postage prepaid or (c) sent by facsimile, in each case to the address or
      facsimile number, as the case may be, set forth below:

     

    If
      to the
      Company:

     

    Acquicor
      Technology Inc.

    4910
      Birch Street

    Suite
      102

    Newport
      Beach, CA 92660

    Attn:
      General Counsel

    

    Facsimile
      No.: 949-266-9020

    Telephone
      No.: 949-759-3434

     

    With
      a
      copy to:

     

    Cooley
      Godward Kronish LLP

    101
      California Street

    San
      Francisco, California 94111

    Attn:
      Gian-Michele a Marca

     

    Facsimile
      No.: 415-693-2222

    Telephone
      No.: 415-693-2148

     

    If
      to the
      Trustee:

     

    U.S.
      Bank
      National Association

    60
      Livingston Ave.

    St.
      Paul,
      Minnesota 55107

    Attn:
      Richard Prokosch 

     

    Facsimile
      No.: (651) 495-8097

    Telephone
      No.: (651) 495-3918

     

    
      
        
        

      

      
        -7-

        
          

        

      

      
        
        

      

    

     

    If
      to the
      Collateral Agent:

     

    U.S.
      Bank
      National Association

    60
      Livingston Ave.

    St.
      Paul,
      Minnesota 55107

    Attn:
      Richard Prokosch

     

    Facsimile
      No.: (651) 495-8097

    Telephone
      No.: (651) 495-3918

     

    If
      to the
      Initial Purchasers:

     

    c/o
      CRT
      Capital Group LLC 

    262
      Harbor Drive

    Stamford,
      CT 06902

    Attn:
      Christopher Chase

    

    Facsimile
      No.: (203) 569-6890

    Telephone
      No.: (203) 569-6824

     

    With
      a
      copy to:

     

    Bingham
      McCutchen LLP

    150
      Federal Street

    Boston,
      Massachusetts 02110-1726

    Attn:
      John R. Utzschneider, Esq.

     

    Fax
      No.:
      (617) 951-8736

    Telephone
      No.: (617) 951-8852

     

    If
      to the
      Escrow Agent:

     

    U.S.
      Bank
      National Association

    60
      Livingston Ave.

    St.
      Paul,
      Minnesota 55107

    Attn:
      Richard Prokosch

     

    Facsimile
      No.: (651) 495-8097

    Telephone
      No.: (651) 495-3918

     

    Except
      to
      the extent otherwise provided in the second paragraph of Section 4 hereof,
      delivery of any communication given in accordance herewith shall be effective
      only upon actual receipt thereof by the party or parties to whom such
      communication is directed. Any party to this Escrow Agreement may change the
      address to which communications hereunder are to be directed by giving written
      notice to the other party or parties hereto in the manner provided in this
      section.

     

    
      
        
        

      

      
        -8-

        
          

        

      

      
        
        

      

    

     

    14.  Consultation
      with Legal Counsel.
      The
      Escrow Agent may consult with its counsel or other counsel satisfactory to
      it
      concerning any question relating to its duties or responsibilities hereunder
      or
      otherwise in connection herewith and shall not be liable for any action taken,
      suffered or omitted by it in good faith upon the advice of such
      counsel.

     

    15.  Choice
      of Laws; Cumulative Rights.
      This
      Escrow Agreement shall be construed under, and governed by, the laws of the
      State of New York without regard to the conflict of laws principles thereof
      which might indicate the applicability of the laws of another jurisdiction.
      All
      of the Escrow Agent’s rights hereunder are cumulative of any other rights it may
      have at law, in equity or otherwise. The parties hereto agree that the forum
      for
      resolution of any dispute arising under this Escrow Agreement shall be Borough
      of Manhattan, New York, New York, and each of the Other Parties hereby consents,
      and submits itself, to the jurisdiction of any state or federal court sitting
      in
      Borough of Manhattan, New York, New York.

     

    16.  Resignation.
      The
      Escrow Agent shall have the right at any time to resign hereunder by giving
      written notice of its resignation to the Company (with a copy to the Initial
      Purchasers) at the addresses set forth herein, or at such other addresses as
      the
      Company or the Initial Purchasers shall provide, at least thirty (30) days
      prior
      to the date specified for such resignation to take effect. The Company shall
      promptly appoint a successor escrow agent. Such resignation shall not be
      effective until the acceptance of appointment by a successor escrow agent.
      Upon
      the effective date of such resignation, all cash and other payments and all
      other property then held by the Escrow Agent hereunder in the Escrow Account
      shall be delivered by it to such successor escrow agent. If no successor escrow
      agent is appointed and has accepted its appointment within thirty (30) days
      after the Escrow Agent has given notice of its resignation as aforesaid, the
      Escrow Agent may apply to a court of competent jurisdiction for such
      appointment. The Escrow Agent or any successor thereto is not required to be
      the
      same entity as the Trustee under the Indenture.

     

    17.  Assignment.
      This
      Escrow Agreement shall not be assigned by any of the Other Parties without
      the
      prior written consent of the Escrow Agent (such assigns of the Other Parties
      to
      which the Escrow Agent consents, if any, and the Escrow Agent’s assigns being
      hereinafter referred to collectively as “Permitted
      Assigns”).

     

    18.  Severability.
      If one
      or more of the provisions hereof shall for any reason be held to be invalid,
      illegal or unenforceable in any respect under applicable law, such invalidity,
      illegality or unenforceability shall not affect any other provisions hereof,
      and
      this Escrow Agreement shall be construed as if such invalid, illegal or
      unenforceable provision had never been contained herein, and the remaining
      provisions hereof shall be given full force and effect.

     

    19.  Termination.
      This
      Escrow Agreement shall terminate upon the disbursement of the Deposits in full,
      in accordance with Section 5 hereof or by order of a court of competent
      jurisdiction; provided,
      however, that
      in
      the event all fees, expenses, costs and other amounts required to be paid to
      the
      Escrow Agent hereunder are not fully and finally paid prior to termination,
      the
      provisions of Section 11 hereof shall survive the termination hereof;
provided,
      further, that
      the
      last two sentences of Section 9 hereof and the provisions of Section 10 hereof
      shall, in any event, survive the termination hereof.

     

    
      
        
        

      

      
        -9-

        
          

        

      

      
        
        

      

    

     

    20.  General.
      The
      section headings contained in this Escrow Agreement are for reference purposes
      only and shall not affect in any way the meaning or interpretation of this
      Escrow Agreement. This Escrow Agreement and any affidavit, certificate,
      instrument, agreement or other document required to be provided hereunder may
      be
      executed in two (2) or more counterparts, each of which shall be deemed an
      original, but all of which taken together shall constitute but one and the
      same
      instrument. Unless the context shall otherwise require, the singular shall
      include the plural and vice-versa, and each pronoun in any gender shall include
      all other genders. The terms and provisions of this Escrow Agreement constitute
      the entire agreement among the parties hereto in respect of the subject matter
      hereof, and neither the Other Parties nor the Escrow Agent has relied on any
      representations or agreements of the other, except as specifically set forth
      in
      this Escrow Agreement. This Escrow Agreement or any provision hereof may be
      amended, modified, waived or terminated only by written instrument duly signed
      by the parties hereto. This Escrow Agreement shall inure to the benefit of,
      and
      be binding upon, the parties hereto and their respective Permitted Assigns.
      This
      Escrow Agreement is for the sole and exclusive benefit of the Other Parties
      and
      the Escrow Agent, and nothing in this Escrow Agreement, express or implied,
      is
      intended to confer or shall be construed as conferring upon any other person
      any
      rights, remedies or any other type or types of benefits; provided,
      however,
      that
      the Escrow Agent and Other Parties hereby acknowledge and agree that the Initial
      Purchasers are intended third party beneficiaries of Sections 5 and 16
      hereof.

     

    [Signature
      page follows.]

     

    
      
        
        

      

      
        -10-

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the parties hereto have executed this Escrow Agreement to
      be
      effective as of the date first above written.

    
      	 	 	 
	 	
              ACQUICOR
                TECHNOLOGY INC.

            
	 
 	 
 	 
 
	
            	By:  	/s/ Gilbert F. Amelio
	 	
              

              Name:
                Gilbert F. Amelio

            
	 	
              Title:
                Chairman and Chief Executive Officer

            

    

     

    
      	 	 	 
	 	
              U.S.
                BANK NATIONAL

              ASSOCIATION,
                AS TRUSTEE

            
	 
 	 
 	 
 
	
            	By:  	/s/ Richard Prokosch
	 	
              

              Name:
                Richard Prokosch

            
	 	
              Title:
                Vice President

            

    

     

    
      	 	 	 
	 	
              U.S.
                BANK NATIONAL

              ASSOCIATION,
                AS COLLATERAL AGENT

            
	 
 	 
 	 
 
	
            	By:  	/s/ Richard Prokosch
	 	
              

              Name:
                Richard Prokosch

            
	 	
              Title:
                Vice President

            

    

    

    
      	 	 	 
	 	
              U.S.
                BANK NATIONAL ASSOCIATION, AS ESCROW AGENT

            
	 
 	 
 	 
 
	
            	By:  	/s/ Richard Prokosch
	 	
              

              Name:
                Richard Prokosch

            
	 	
              Title:
                Vice President

            

    

     

     

    
      
        
        

      

      
        -11-

        
          

        

      

      
        
        

      

    

     

    Schedule
      A

     

    Fee
      Schedule

     

    The
      Escrow Agent shall charge no fee for its services as Escrow Agent so long as
      the
      Deposits are invested in the First American Government Obligations Fund, Class
      D, CUSIP #31846V732.

     

    
      
        
        

      

      
        A-1

        
          

        

      

      
        
        

      

    

    Schedule
      B

     

    Telephone
      Number for Call-backs and Person

    Designated
      to Confirm Funds Transfer Instructions

    

    If
      to the
      Company:

    

    
      	
              Name

            	 	
              Telephone
                Number

            
	
              General
                Counsel

            	 	
              (949)
                759-3434

            

    

     

    If
      to the
      Initial Purchasers:

     

    
      	
              Name

            	 	
              Telephone
                Number

            
	
              Christopher
                Chase

            	 	
              (203)
                569-6824

            

    

     

    If
      to the
      Trustee:

     

    
      	
              Name

            	 	
              Telephone
                Number

            
	
              Richard
                Prokosch

            	 	
              (651)
                495-3918

            

    

    

    

    
      
        
        

      

      
        B-1

        
          

        

      

      
        
        

      

    

    ANNEX
      A

     

    ACQUICOR
      TECHNOLOGY INC.

     

    [___________],
      2007

     

    OFFICER’S
      CERTIFICATE

     

    The
      undersigned, ____________, the ____________ of Acquicor Technology Inc., a
      Delaware corporation (the “Company”),
      pursuant to Section 5(a)(i) of the Escrow Agreement, dated as of December 19,
      2006 (the “Escrow
      Agreement”),
      by
      and among the Company, U.S. Bank National Association, a national banking
      association, as trustee under the Indenture dated as of December 19, 2006 (as
      amended, supplemented, restated or otherwise modified from time to time),
      pursuant to which the Company issued the Notes, as defined in the Indenture
      (the
“Trustee”),
      U.S.
      Bank National Association, a banking association, acting in the capacity of
      collateral agent for the Holders (as defined in the Escrow Agreement) (the
      “Collateral
      Agent”)
      and
      U.S. Bank National Association, a national banking association, as escrow agent
      (the “Escrow
      Agent”),
      on
      behalf of the Company, hereby provides this officers’ certificate to the
      Trustee, with a copy to the Escrow Agent, the Collateral Agent and the Initial
      Purchasers. Capitalized terms used but not defined herein shall have the
      meanings given to them in the Escrow Agreement.

     

    The
      undersigned hereby certifies to the Escrow Agent, the Trustee and the Collateral
      Agent that:

     

    (a)  the
      undersigned has read the covenants relating to, and conditions to, the release
      of the [Collateral], including the Deposits, and the definitions relating
      thereto set forth in the Indenture, the Pledge Agreement and the Escrow
      Agreement;

     

    (b)  In
      connection with this certificate, the undersigned has examined and relied
      upon:

     

    (1)  the
      certificate from the Inspector of Election at the Special Meeting of the
      stockholders of the Company held on •, 2007, 

     

    (2)  the
      Agreement and Plan of Acquisition dated September 26, 2006, by and among the
      Company, Joy Acquisition Corp., Jazz and TC Group, L.L.C. as Jazz’s
      stockholders’ representative, including the conditions to the Acquisition set
      forth therein, 

     

    (3)  certificates
      from officers of the Company and Jazz and other documents delivered in
      connection with the Acquisition;

     

    (4)  the
      Company’s corporate records; and 

     

    (5)  such
      amendments to the Company’s certificate of incorporation as are necessary to
      implement the Authorized Share Increase. 

     

    
      
        
        

      

      
        ANNEX-A-1

        
          

        

      

      
        
        

      

    

     

    In
      addition, the undersigned has examined such other documents and made such
      investigation as the undersigned has deemed necessary or appropriate to enable
      him to deliver this certificate.

     

    (c)  In
      the
      opinion of the undersigned, the undersigned made such examination or
      investigation as is necessary to enable him to express an informed opinion
      as to
      whether compliance with the conditions to, and covenants relating to, the
      release of the Collateral, including the Deposits, have been complied
      with;

     

    (d)  In
      the
      opinion of the undersigned, the conditions to, and the covenants relating to,
      the release of the Collateral, including the Deposits, have been complied with;
      and

     

    (e) The
      Acquisition will occur immediately after the release of the Deposits as
      specified below.

    

    The
      Company hereby requests the Trustee to direct the Escrow Agent to
      remit:

     

    (a)  U.S.$[__________]
      of the Deposits, such amount being equal to 3.5% of the gross proceeds from
      the
      sale and issuance of the Notes that were deposited into the Escrow Account,
      as
      specified below on the date hereof by wire transfer of immediately available
      funds in accordance with the following wire transfer instructions:

     

    [insert
      wire transfer instructions]

     

    (b)  The
      balance of the Deposits, remaining in the Escrow Account after remitting the
      amount of the Deposits specified in paragraph (a) above, for the purposes of
      funding the Acquisition and for certain other purposes, as specified below
      on
      the date hereof by wire transfer of immediately available funds in accordance
      with the following wire transfer instructions:

     

    [insert
      wire transfer instructions]

    

    [Signature
      Page Follows]

     

    
      
        
        

      

      
        ANNEX-A-2

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the undersigned has signed this Officer’s Certificate on the
      date written above.

     

    
      	 	By: 
	 	
              
                

              

              Name:

            
	 	Title:

    

    

     

    
      
        
        

      

      
        ANNEX-A-3

        
          

        

      

      
        
        

      

    

    ANNEX
      B

     

    ACQUICOR
      TECHNOLOGY INC.

     

    [___________],
      2007

     

    NOTICE

     

    The
      undersigned, ___________, the ___________ of Acquicor Technology Inc., a
      Delaware corporation (the “Company”),
      pursuant to Section 5(b)(i) of the Escrow Agreement dated as of December 19,
      2006 (the “Escrow
      Agreement”),
      by
      and among the Company, U.S. Bank National Association, a national banking
      association, as trustee under the Indenture dated as of December 19, 2006 (as
      amended, supplemented, restated or otherwise modified from time to time),
      pursuant to which the Company issued the Notes, as defined in the Indenture
      (the
“Trustee”),
      U.S.
      Bank National Association, a banking association, acting in the capacity of
      collateral agent for the Holders (as defined in the Escrow Agreement) (the
      “Collateral
      Agent”)
      and
      U.S. Bank National Association, a national banking association, as escrow agent
      (the “Escrow
      Agent”),
      on
      behalf of the Company, hereby provides notice to the Trustee, with a copy to
      the
      Escrow Agent, the Collateral Agent and the Initial Purchasers, that the Company
      will effect a “Special Mandatory Redemption” on _____, 200_ (the “Special
      Mandatory Redemption Date”)
      pursuant to Section 14.10 of the Indenture, dated as of December 19, 2006 (the
      “Indenture”),
      by
      and between the Company and the Trustee. Unless otherwise specified, capitalized
      terms used herein and not defined herein shall have the meanings given such
      terms in the Indenture.

     

    The
      Company through its undersigned officers hereby notifies and requests the
      Trustee to instruct the Escrow Agent to transfer to the Trustee on the Special
      Mandatory Redemption Date the balance of the Deposits in the Escrow
      Account.

     

    [Signature
      Page Follows]

     

    
      
        
        

      

      
        ANNEX-B-1

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the Company, through its undersigned officers, has signed
      this
      Notice on the date written above. 

     

    
      	 	
              ACQUICOR
                TECHNOLOGY INC.

            
	 	 
	 	By: 
	 	
              
                

              

              Name:

            
	 	Title:

    

     

    
      
        
        

      

      
        ANNEX-B-2EX 4.3

    Exhibit
      4.3

     

    Execution
      Version

     

    PLEDGE
      AND SECURITY AGREEMENT

     

    This
      PLEDGE
      AND SECURITY AGREEMENT
      (as
      amended, supplemented, restated or otherwise modified from time to time, this
      “Agreement”)
      dated
      as of December 19, 2006 by and between Acquicor Technology, Inc., a Delaware
      corporation (the “Grantor”)
      and
      U.S. Bank National Association, a banking association, acting in the capacity
      of
      collateral agent for the benefit of the Secured Parties (as defined below)
      (the
“Collateral
      Agent”).
      Capitalized terms used herein and not otherwise defined herein shall have the
      meanings given to such terms in the Indenture (as hereinafter
      defined)

     

    RECITALS:

     

    WHEREAS,
      Grantor
      and U.S. Bank National Association, as trustee (the “Trustee”),
      have
      entered into that certain Indenture dated as of the date hereof (as amended,
      supplemented, restated or otherwise modified from time to time, the
“Indenture”),
      pursuant to which the Grantor is issuing on the date hereof $145,000,000 in
      aggregate principal amount of its 8% Convertible Senior Notes due December
      31,
      2011 (the “Notes”);

    

    WHEREAS,
      the
      Grantor, the Collateral Agent, the Trustee and U.S. Bank National Association,
      as escrow agent (the “Escrow
      Agent”)
      have
      entered into that certain Escrow Agreement dated as of the date hereof (as
      amended, supplemented, restated or otherwise modified from time to time, the
      “Escrow
      Agreement”),
      pursuant to which the Grantor has placed the gross proceeds of the Notes into
      a
      securities account (the “Pledge
      Account”)
      maintained at the Securities Intermediary’s account office located at 60
      Livingston Avenue, St. Paul, MN 55107, registered in the name of the Grantor,
      as
      entitlement holder, and designated as Account No. 108067001, Reference:
“Acquicor 8% Convertible Senior Notes”;

    

    WHEREAS,
      as
      security for the full and final payment and performance of the Secured
      Obligations (as defined below), the Grantor has entered into this Agreement,
      pursuant to which the Grantor will grant a security interest in or pledge the
      Collateral (as defined below), which Collateral is governed by the terms of
      the
      Escrow Agreement; and

    

    WHEREAS,
      the
      Grantor will direct the Escrow Agent to deliver control of the Collateral to
      the
      Collateral Agent and to otherwise take such actions Collateral Agent may
      reasonably require to provide the Collateral Agent with a perfected security
      interest in the Collateral.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    AGREEMENT:

     

    NOW,
      THEREFORE,
      in
      consideration of the premises and the agreements, provisions and covenants
      contained herein, the Grantor and Collateral Agent agree as
      follows:

     

    1.  DEFINITIONS.
      All
      capitalized terms used herein without definition shall have the meanings given
      to such terms in the Indenture. As used herein, “UCC”
means
      the Uniform Commercial Code as enacted and in effect in the State of New York.
      Terms defined in the UCC and not otherwise defined herein have the meanings
      specified in the UCC. The term “instrument,” as used herein, means “instrument”
as defined in Article 9 of the UCC. The following terms shall have the meanings
      set forth below:

     

    “Control
      Agreement”
shall
      mean the Securities Account Control Agreement dated as of the date hereof among
      the Grantor, the Collateral Agent and the Securities Intermediary, in form
      and
      substance satisfactory to the Collateral Agent, and any amendment, modification,
      supplement or restatement thereof. 

     

    “Initial
      Purchasers”
shall
      mean CRT Capital Group LLC and Needham & Company, LLC or such other
      subsequent holders of the Notes.

     

    “Securities
      Intermediary”
shall
      mean U.S. Bank National Association, a national banking association, acting
      in
      the capacity of securities intermediary.

     

    “Secured
      Parties”
shall
      mean the Initial Purchases and any subsequent Holders. 

     

    2.  THE
      SECURITY INTEREST.
      In
      order to secure the payment and performance in full of all the Secured
      Obligations (as hereinafter defined), the Grantor hereby pledges and grants
      to
      the Collateral Agent a continuing security interest in, and collaterally assigns
      to the Collateral Agent its interest in, the following properties, assets and
      rights of the Grantor, wherever located, whether now owned or hereafter acquired
      or arising (all of the same being hereinafter called, collectively, the
“Collateral”):

     

    (a)  Pledge
      Account.
      The
      Pledge Account itself, all rights of the Grantor against the Securities
      Intermediary or any clearing broker for the Securities Intermediary in
      connection with the Pledge Account, and all securities, stocks, bonds, mutual
      fund shares, United States Treasury instruments and other investment property
      and financial assets now or hereafter reflected as maintained in the Pledge
      Account, together with any and all proceeds, replacements or substitutions
      therefore and including without limitation, the following types of assets
      maintained in the Pledge Account (collectively, the “Pledged Securities”):

     

    (i)  Securities.
      (A) All
      securities, certificated or uncertificated, including without limitation all
      stocks, bonds, U.S. Treasury bills or instruments, securities entitlements,
      certificates of deposit or other time deposits, and investment company or other
      mutual or money market fund shares, in each case now or hereafter owned by
      the
      Grantor or by third parties who have authorized the Grantor to pledge such
      securities for indebtedness outstanding to the Grantor and which now are or
      hereafter may be maintained in or credited to the Pledge Account; and (B) any
      security entitlements and any and all assets or property from time to time
      credited to the Pledge Account, including without limitation any cash deposits
      and any other assets of the types described in clause (A) above, evidenced
      or
      appearing on the books and records of the Securities Intermediary, including
      without limitation items in transit by mail or carrier or in the possession
      of
      any third party (including any Federal Reserve Bank) acting for safekeeping,
      as
      agent for collection or transmission, or otherwise;

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    (ii)  Instruments.
      All
      instruments, whether negotiable or non-negotiable, tangible or in electronic
      form, made payable to or endorsed to the Grantor or in which the Grantor has
      an
      interest, including without limitation, due bills, dividend payment claims,
      checks and other writings of every kind or description evidencing a right to
      the
      payment of money however established or created and which now are or hereafter
      may be maintained in or credited to the Pledge Account;

     

    (iii)  Other
      Property.
      All
      other property of any kind, tangible or intangible, of the Grantor maintained
      in
      or comprising the Pledge Account at any time or from time to time, including
      without limitation all deposit accounts, securities accounts, cash, documents,
      letter of credit rights, advices of credit, warehouse or other receipts,
      insurance claims and proceeds, chattel paper (tangible or electronic), contract
      rights or rights to the payment of money; 

     

    (b)  Rights
      and Remedies.
      All
      remedies and privileges pertaining to the Collateral, subject to the terms
      hereof; and

     

    (c)  Proceeds.
      All
      proceeds of every kind or nature, and in whatever form (including both cash
      and
      non-cash) received now or in the future upon the sale or other disposition
      of
      the Collateral, including without limitation insurance proceeds, all cash
      payments or other property received as dividends, interest, or other proceeds,
      distribution rights or accretions of any kind, and any and all cash or non-cash
      property received in exchange for or in respect of any of the above described
      Collateral pursuant to any sale, disposition, merger, reorganization, exchange,
      stock split, dividend, distribution or similar event or
      transaction.

     

    The
      foregoing Collateral shall be treated as “financial assets” as defined in
      Article 8 of the UCC and shall include all “investment property” as defined in
      Article 9 of the UCC.

     

    3.  OBLIGATIONS.
      The
      Grantor hereby agrees that the Collateral shall be security for the prompt
      and
      complete payment or performance in full when due, whether at stated maturity,
      by
      required prepayment, declaration, acceleration, demand or otherwise of any
      and
      all obligations
      and liabilities of every kind, direct or indirect, absolute or contingent,
      due
      or to become due, now existing or hereafter arising, under or in connection
      with
      the Notes, the Indenture or this Agreement (all of the foregoing, the
“Secured
      Obligations”).
       

     

    4.  RIGHTS
      AND DUTIES AS TO COLLATERAL.

     

    (a)  The
      Collateral Agent hereby agrees that it shall only deliver a Notice of Exclusive
      Control (as defined in the Control Agreement), or give to the Securities
      Intermediary any entitlement orders and other instructions as to the transfer,
      redemption, withdrawal, disposition or investment of any of the Collateral,
      after the occurrence and continuance of an Event of Default. 

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    (b)  The
      Collateral Agent may at any time collect and receive, and at its option apply
      to
      the Secured Obligations after the occurrence and continuance of an Event of
      Default, any distribution in cash or otherwise payable with respect to the
      Collateral and may demand, sue for, receive and collect or make any compromise
      or settlement with reference to any Collateral. At its option, the Collateral
      Agent may pay for insurance for the Collateral and any charges, taxes,
      assessments, liens, and other reasonable expenses as it deems reasonably
      desirable to protect, maintain, preserve or collect the Collateral and all
      such
      expenses incurred will be chargeable to the Collateral. The Collateral Agent,
      at
      any time, may have the Collateral transferred into its name or that of a nominee
      and receive the income thereon and notify the obligor(s) on any Collateral
      to
      make payments due, or to become due, directly to the Collateral Agent. For
      the
      purpose of perfecting the Collateral Agent’s security interest in the
      Collateral, the Grantor will hold the Collateral in the Pledge Account subject
      to the Control Agreement. In order to perfect its security interest in the
      Collateral, the Collateral Agent may register the pledge of any such Collateral
      with its issuer by sending them a copy of this Agreement; notify a financial
      intermediary (including itself), a clearing corporation or third person of
      its
      security interest by sending them a copy of this Agreement; or transfer US
      government securities recorded on its books in the name of the Grantor to the
      Collateral Agent’s own account or that of a nominee. Beyond the exercise of
      reasonable care to assure the safe custody of Collateral, the Collateral Agent
      shall be under no duty or liability to collect the Collateral or the income
      thereon or to protect or preserve rights pertaining thereto, and shall be
      relieved of all responsibility for the Collateral upon surrendering it to the
      Grantor. The Collateral Agent shall be deemed to have exercised reasonable
      care
      in the custody and preservation of any Collateral in its possession if the
      Collateral Agent accords such Collateral treatment substantially equal to that
      which the Collateral Agent accords to its own property. The Grantor agrees
      to
      indemnify and hold the Collateral Agent harmless against any loss or damage
      the
      Collateral Agent may suffer and any expense it may incur or claim asserted
      against it as a result of dealing with the Collateral or any other action it
      may
      take in reliance upon any provision of this Agreement except for any such
      portion of any such loss or damage caused solely by reason of the Collateral
      Agent’s gross negligence or willful misconduct. Upon demand, the Grantor will
      pay to the Collateral Agent the amount of any and all reasonable out-of-pocket
      expenses which the Collateral Agent may incur in connection with (i) the
      exercise or enforcement of any of the rights of the Collateral Agent under
      this
      Agreement or (ii) the failure by the Grantor to perform or observe any of its
      agreements or obligations under this Agreement.

     

    (c)  Anything
      herein to the contrary notwithstanding, the Grantor shall remain liable under
      each contract or agreement comprised in the Collateral to be observed or
      performed by the Grantor thereunder. The Collateral Agent shall not have any
      obligation or liability under any such contract or agreement by reason of or
      arising out of this Agreement or the receipt by the Collateral Agent of any
      payment relating to any of the Collateral, nor shall the Collateral Agent be
      obligated in any manner to perform any of the obligations of the Grantor under
      or pursuant to any such contract or agreement, to make inquiry as to the nature
      or sufficiency of any payment received by the Collateral Agent in respect of
      the
      Collateral or as to the sufficiency of any performance by any party under any
      such contract or agreement, to present or file any
      claim, to take any action to enforce any performance or to collect the payment
      of any amounts which may have been assigned to the Collateral Agent or to which
      the Collateral Agent may be entitled at any time or times.

     

    (d)  With
      respect to any Collateral consisting of securities, whether certificated or
      uncertificated, or other investment property now or hereafter held by the
      Grantor through the Securities Intermediary, the Grantor shall cause the
      Securities Intermediary, pursuant to an agreement in form and substance
      reasonably satisfactory to the Collateral Agent, to agree to comply with
      entitlement orders or other instructions from the Collateral Agent to the
      Securities Intermediary as to such securities or other investment property,
      without further consent of the Grantor, in accordance with and pursuant to
      the
      terms of the Control Agreement. In order to perfect its security interest in
      the
      Collateral, the Collateral Agent may transfer U.S. government securities
      recorded on its books in the name of the Grantor to the Collateral Agent’s own
      account or that of a nominee.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    (e)  The
      parties hereto hereby agree that so long as no Event of Default has occurred,
      the Grantor, through the Escrow Agent, shall be permitted to invest the
      Collateral pursuant to the terms set forth in the Escrow Agreement.

     

    5.  REPRESENTATIONS,
      WARRANTIES, AND COVENANTS OF THE GRANTOR.
      The
      Grantor hereby represents, warrants, and covenants as follows:

     

    (a)  The
      Grantor is the legal and equitable owner of the Collateral and holds the
      Collateral free and clear of all liens, charges, encumbrances and security
      interests of every kind and nature whatsoever except for the security interest
      granted hereunder to the Collateral Agent; provided, however, that the
      Collateral is governed by the terms of the Escrow Agreement. The Grantor has
      good right and legal authority to assign, deliver and/or create a security
      interest in the Collateral and shall defend its title to the Collateral against
      all claims of all other persons or entities. The Grantor (i) shall be solely
      responsible for the payment of, and shall promptly pay and discharge, or shall
      cause to be paid and discharged, all taxes, assessments and other governmental
      charges or levies, liens, premiums and other charges imposed upon the Collateral
      or upon the income from the Collateral, (ii) shall file in a timely manner
      all
      tax returns and reports required to be filed in connection therewith and (iii)
      shall indemnify and hold the Collateral Agent harmless from and against all
      such
      taxes, assessments and other governmental charges or levies (including interest
      and penalties) and all costs and expenses incurred by the Collateral Agent
      in
      connection therewith. The Grantor further agrees not to assign this Agreement,
      not to assign, lease or grant any option or similar right with respect to,
      any
      of the Collateral or any part thereof, and not to create, incur, assume or
      suffer to exist any mortgage, pledge, security interest, lien or other charge
      or
      encumbrance upon, any of the Collateral, or enter into any agreement preventing
      it from encumbering any the Collateral, other than pledges and security
      interests in favor of the Collateral Agent.

     

    (b)  The
      Grantor agrees to deliver to the Securities Intermediary and place under the
      Collateral Agent’s control any and all stock dividends, warrants, options,
      rights, substituted shares or other securities distributed on account of the
      Collateral or received on account of the exercise by the Grantor of any option,
      warrant or right appertaining to any security constituting part of the
      Collateral. In case such a distribution of stock dividends, warrants, options,
      rights, substituted shares or other securities is made directly to the
      Collateral Agent, the Grantor will execute such assignments and other documents
      as the Collateral Agent may require in order to adequately make such
      distribution part of the Collateral hereunder.

     

    (c)  The
      Grantor represents and warrants that the Escrow Agent is authorized on behalf
      of
      the Grantor to purchase assets for, and invest and dispose of assets in the
      Pledge Account, to give instructions with respect to the purchase, investment
      or
      disposition of any assets in the Pledge Account and take all other actions
      with
      respect to the Pledge Account in accordance with the terms of the Escrow
      Agreement. The Grantor agrees to be bound by any action taken by the Escrow
      Agent in connection therewith and covenants that it will not revoke the
      authority of the Escrow Agent to take the foregoing actions without also
      providing prior written notice to the Collateral Agent of such revocation.
      Until
      such time as the Collateral Agent receives an effective written notice from
      the
      Grantor that the Grantor has revoked the Escrow Agent’s authority as set forth
      herein, the Collateral Agent shall at all times be entitled to rely on all
      instructions, requests and actions of the Escrow Agent as if such instructions,
      requests and/or actions were being made directly by the Grantor, and the term
      “Grantor” shall, for such purposes, include the Escrow Agent acting on the
      Grantor’s behalf.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    (d)  The
      Grantor covenants and agrees to execute and deliver such additional instruments
      and take such further action as the Collateral Agent may reasonably request
      solely to effect the purpose of this Agreement and the other Offering Documents,
      including without limitation, causing the Escrow Agent or the relevant issuer
      of
      any securities to be included as Collateral from time to time and/or other
      required parties (including transfer agents and securities intermediaries)
      to
      execute and deliver to the Collateral Agent such control agreements, letters
      of
      direction or other documents or agreements as the Collateral Agent may
      reasonably require in order to perfect (including by control) its security
      interest in the Collateral.

     

    (e)  Except
      as
      the Collateral Agent may otherwise permit in its discretion and with respect
      to
      which there are in effect appropriate control agreements or other documents
      as
      the Collateral Agent may from time to time require, all Collateral will be
      maintained with the Collateral Agent, the Securities Intermediary or the Escrow
      Agent, subject to the Control Agreement and the Escrow Agreement as
      applicable.

     

    6.  ATTORNEY-IN-FACT.
      The
      Collateral Agent, its successors and assigns and any duly authorized officer
      thereof are hereby irrevocably appointed by the Grantor as the Grantor’s
      attorney-in-fact, with full authority in the place and stead of the Grantor
      and
      in the name of the Grantor or otherwise, from time to time in the Collateral
      Agent’s reasonable discretion at any time to take any and all action and to
      execute any instrument or other assurance which the Collateral Agent may deem
      reasonably necessary or advisable to accomplish the purposes of this Agreement,
      including: (a) to ask, demand, collect, sue for, recover, compromise, receive
      and give acquittance and receipts for moneys due and to become due under or
      in
      respect of any of the Collateral; (b) to receive, endorse and collect any drafts
      or other instruments in connection with clause (a); (c) to execute and do all
      such assurances, acts and things which the Grantor is required to do under
      the
      covenants and provisions of this Agreement; and (d) to take any and all actions
      as the Collateral Agent may reasonably determine to be necessary or advisable
      for the purpose of establishing, maintaining, preserving or protecting the
      security interest constituted by this Agreement or any of the rights, remedies,
      powers or privileges of the Collateral Agent under this Agreement. To the extent
      permitted by law, the Grantor hereby ratifies all that such attorney shall
      lawfully do or cause to be done by virtue hereof. This power of attorney is
      a
      power coupled with an interest and shall be irrevocable. Without limiting the
      foregoing, the Collateral Agent is hereby authorized to file in any filing
      office in any Uniform Commercial Code jurisdiction any initial financing
      statements and amendments thereto that (a) indicate the Collateral as assets
      of
      the Grantor subject to the Collateral Agent’s lien and security interest,
      regardless of whether any particular asset comprising the Collateral falls
      within the scope of Article 9 of the Uniform Commercial Code of the jurisdiction
      in which the financing statement is filed, with such Collateral description
      used
      by the Collateral Agent to have the most encompassing definition applicable
      under Article 9 of the Uniform Commercial Code of the applicable jurisdiction
      and consistent with the intent of this Agreement, and (b) provide any other
      information required by part 5 of Article 9 of the Uniform Commercial Code
      of
      any jurisdiction for the sufficiency or filing office acceptance of any
      financing statement or amendment, including whether the Grantor is an
      organization or individual, the type of organization and any organizational
      identification number issued to the Grantor. The Grantor agrees to furnish
      any
      such information to the Collateral Agent promptly upon the Collateral Agent’s
      request. The Grantor also ratifies its authorization for the Collateral Agent
      to
      have filed in any Uniform Commercial Code jurisdiction any like initial
      financing statements or amendments thereto if filed prior to the date
      hereof.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    7.  RIGHTS
      WITH RESPECT TO COLLATERAL AFTER AN EVENT OF DEFAULT.
      Upon
      the occurrence and during the continuation of an Event of Default, all rights
      of
      the Grantor to exercise any voting and other consensual rights which it would
      otherwise be entitled to exercise with respect to the Collateral shall cease,
      and all such voting and other consensual rights shall thereupon become vested
      in
      the Collateral Agent who shall thereafter have the sole right to exercise such
      voting and other consensual rights without notice to the Grantor. 

     

    8.  RECORDS
      OF COLLATERAL.
      The
      Grantor hereby authorizes the Collateral Agent to keep the official record
      of
      all instruments, securities, accounts or other property which may, as a result
      of reinvestment, substitution, or sale upon or prior to maturity or otherwise,
      from time to time constitute Collateral. Such records shall be presumed to
      be
      true and correct absent manifest error. The Grantor authorizes the Collateral
      Agent to access all books and records relating to the Pledge Account on a daily
      basis.

     

    9.  INTENTIONALLY
      DELETED.
      

     

    10.  RIGHTS
      AND REMEDIES OF THE COLLATERAL AGENT.
      Upon
      the occurrence of and continuance of an Event of Default, or at any time
      thereafter, without further notice or demand, the Collateral Agent may declare
      this Agreement to be in default and thereafter shall have all the rights and
      remedies of a secured party afforded by the Uniform Commercial Code as then
      in
      effect in the State of New York or afforded by other applicable law and shall
      have the right to set off against the Pledge Account regardless of the adequacy
      of any other Collateral, and to sell, resell, assign and deliver or otherwise
      dispose of any or all of the Collateral at a private or public sale for cash
      or
      credit or both upon such terms at such place or places, at such time or times
      and to such entities or other persons as the Collateral Agent thinks expedient
      all without demand for performance by the Grantor or any notice or advertisement
      whatsoever except as expressly provided herein or as may otherwise be required
      by law. Where reasonable notification of the time and place of such sale or
      other disposition is required by law, such requirement shall be met if the
      Collateral Agent gives to the Grantor not less than five (5) days notice in
      writing mailed, postage prepaid, to the last address of the Grantor known to
      it,
      of the time and place of any public sale of the Collateral or after which any
      private sale or intended disposition is to be made, provided,
      however, that the Collateral Agent may dispose of the Collateral without notice
      if the Collateral threatens to decline speedily in clause or is of a type
      customarily sold on a recognized market. The Collateral Agent may cause all
      or
      any part of the Collateral held by it to be transferred into its name or the
      name of its nominee or nominees and, for such purpose, without limitation upon
      any other rights or remedies available to the Collateral Agent, may give
      instruction for such effect to any issuer of any of the Collateral or any broker
      or other financial intermediary or book-entry custodian in possession of any
      of
      the Collateral or upon whose books any of the Collateral is then registered.
      The
      Collateral Agent may purchase the Collateral at a public sale and if the
      Collateral is of a type customarily sold in a recognized market or the subject
      of widely distributed standard price quotations, the Collateral Agent may
      purchase the Collateral at a private sale. The Grantor acknowledges that some
      or
      all of the Collateral which is not traded on a nationally recognized exchange
      may be sold at a private sale at prices less favorable than those which could
      be
      obtained at a public sale and the Collateral Agent shall not be required to
      wait
      for completion of any registration of any investment property in order to comply
      with state securities laws prior to liquidating any Collateral. All commissions
      and charges relating to sale of any Collateral shall constitute Secured
      Obligations secured by the Collateral and shall be payable upon demand. After
      deducting all costs and expenses of collection, storage, custody, sale or other
      disposition and delivery and all other charges against the Collateral, the
      residue of the proceeds of any such sale or other disposition shall be applied
      to the payment of the Secured Obligations in order of preference as the
      Collateral Agent may determine, with any remaining balance returned to the
      Grantor.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    11.  TERMINATION.
      This
      Agreement shall terminate upon the earlier of (i) the termination of the Escrow
      Agreement and (ii) the payment in full of the Secured Obligations, and the
      Collateral Agent shall, at the Grantor’s request and expense, (a) return such
      Collateral to the Grantor in the possession or control of the Collateral Agent
      as has not theretofore been disposed of pursuant to the provisions hereof,
      together with any moneys or other property at the time held by the Collateral
      Agent hereunder, and (b) promptly
      file a UCC-3 termination statement (if applicable), and execute and deliver
      to
      the Grantor or its designees such other documents acknowledging the termination
      of this Agreement as shall be reasonably requested by Grantor.

     

    12.  WAIVERS.
      The
      Grantor waives, to the fullest extent permitted by law, presentment, notice,
      protest, notice of acceptance of this Agreement, notice of any credit or other
      financial accommodations extended, extensions granted, Collateral received
      or
      delivered, or any other action taken in reliance thereon, all demands and
      notices in connection with the delivery, acceptance, performance, default or
      enforcement of any note, or other evidence of indebtedness for which any of
      the
      Collateral is pledged, and all other demand and notices of any description,
      and
      assents to any extension or postponement of the time of payment or any other
      such indulgence to any substitution, exchange or release of Collateral and
      to
      the addition or release of any person primarily or secondarily liable except
      as
      otherwise expressly provided herein or in the Indenture.

     

    13.  NOTICES.
      Except
      as otherwise provided herein, notice to or demand upon the Grantor or the
      Collateral Agent shall be deemed to have been sufficiently given or served
      for
      all purposes thereof, if mailed, postage prepaid:

     

    (a)  if
      to the
      Grantor:

     

    to
      its
      address shown on the records of the Collateral Agent from time to
      time.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    (b)  if
      to the
      Collateral Agent:

     

    
      	
              U.S.
                Bank National Association

              60
                Livingston Ave.

              St.
                Paul, Minnesota 55107

              Attn:
                Richard Prokosch

               

              Facsimile
                No.: (651) 495-8097

              Telephone
                No.: (651) 495-3918

            

    

    

    or
      to
      such other address as the party to whom such notice is directed may have
      designated in writing to the other parties hereto.

     

    14.  WAIVER
      OF JURY TRIAL.
      Except
      as prohibited by law, neither the Grantor nor the Collateral Agent, nor any
      assignee or successor of the Grantor or the Collateral Agent, shall seek a
      jury
      trial in any lawsuit, proceeding, counterclaim or any other litigation procedure
      based upon or arising out of this Agreement, any note executed in connection
      herewith, or any other related document or agreement. Neither the Grantor nor
      the Collateral Agent will seek to consolidate any such action, in which a jury
      trial has been waived, with any other action in which a jury trial has not
      been
      waived. THE PROVISIONS OF THIS SECTION HAVE BEEN FULLY DISCUSSED BY THE PARTIES
      HERETO, AND THE PROVISIONS HEREOF SHALL BE SUBJECT TO NO EXCEPTIONS. NO PARTY
      HERETO HAS IN ANY WAY AGREED WITH OR REPRESENTED TO ANY OTHER PARTY THAT THE
      PROVISIONS OF THIS SECTION WILL NOT BE FULLY ENFORCED IN ALL
      INSTANCES.

     

    15.  MISCELLANEOUS.
      No
      delay or omission on the part of the Collateral Agent in exercising any right
      or
      remedy shall operate as a waiver thereof of any other right or remedy. Waiver
      on
      any one occasion shall not be construed as a bar to or waiver of any right
      or
      remedy on any future occasion. All of the Collateral Agent’s rights and
      remedies, whether evidenced hereby or by any other agreement, instrument or
      paper, shall be cumulative and may be exercised singularly or concurrently,
      and
      nothing herein shall be deemed to limit in any way any rights the Collateral
      Agent might otherwise have under any other instrument or by law, including,
      without limiting the generality thereof, the right to negotiate any note or
      other instrument together with any Collateral specifically described therein.
      This Agreement and the security interest granted hereby shall terminate as
      set
      forth in Section 11 hereof. The invalidity or unenforceability of any one or
      more phrases, clauses or sections of this Agreement shall not affect the
      validity or enforceability of the remaining portions of it. If this Agreement
      is
      signed by two or more persons, it shall constitute the joint and several
      obligation of each of such persons.

     

    This
      instrument shall be governed by the law (other than the conflict of laws rules)
      of the State of New York. The Grantor hereby consents to the jurisdiction of
      the
      courts of the State of New York and the United States District Court for the
      Southern District of New York for the purpose of any suit, action, or other
      proceeding arising out of its obligations hereunder.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    
      	 	 	 
	 	ACQUICOR
              TECHNOLOGY INC., as Grantor
	 
 	 
 	 
 
	 	By:  	/s/ Gilbert
              F. Amelio
	 	
              
Name:
              Gilbert F. Amelio 
	 	Title:
              Chairman and Chief Executive Officer

    

     

    
      	 	 	 
	 	
              U.S.
                BANK NATIONAL ASSOCIATION, as 

              Collateral
                Agent

            
	 
 	 
 	 
 
	 	By:  	/s/ Richard
              Prokosch
	 	
              
Name:
              Richard Prokosch
	 	Title:
              Vice President

    

     

     

    
      
        
        

      

      
        10

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