Document:

ex107gtatfirstamendmentt

EXECUTION VERSION      FIRST AMENDMENT TO ASF LICENSE AGREEMENT    This First Amendment (the “First Amendment”), dated as of July 20, 2015, to the License   Agreement, effective as of April 1, 2011 (as modified by that certain Sapphire Transfer Pricing   Analysis and Report for Fiscal Year Ended March 31, 2012, issued January 21, 2013, the “ASF   License Agreement”), is entered into by and between GTAT Corporation (f/k/a GT Solar   Incorporated) (“GT”), a Delaware corporation, and GT Advanced Technologies Limited (f/k/a   GT Solar Hong Kong, Limited) (“GT HK” and, together with GT, the “Parties”), a limited   liability company organized and existing under the laws of Hong Kong.  Capitalized terms used   in this First Amendment but not otherwise defined herein shall have the meaning set forth in the   ASF License Agreement.   RECITALS   WHEREAS, on October 6, 2014 (the “Petition Date”), GT, GT HK, GT Advanced   Equipment Holding LLC (“GT SPE”), GT Advanced Technologies, Inc. (“GT Parent”), GT   Equipment Holdings, Inc., Lindbergh Acquisition Corp., GT Sapphire Systems Holding LLC,   GT Advanced Cz LLC and GT Sapphire Systems Group LLC (collectively, the “Debtors”) filed   chapter 11 cases in the United States Bankruptcy Court for the District of New Hampshire (the   “Bankruptcy Court”);   WHEREAS, under the ASF License Agreement, GT granted GT HK, among other   things, the exclusive right and license (without reservation of right to GT) to make, have made,   assemble, have assembled, use, sell, and/or import advanced sapphire furnaces (“ASF Furnaces”)   in all countries outside of the United States;   WHEREAS, GT and GT HK are parties to that certain Agreement for Sharing   Development Costs, effective as of April 11, 2011 (the “Cost Sharing Agreement”) pursuant to   which GT and GT HK agreed, among other things, to share the costs of the development of   improvements to the original technology platform licensed under the ASF License Agreement   (such improvements, the “Improvements”);   WHEREAS, under the Cost Sharing Agreement, GT and GT HK each received the   exclusive right and licenses (without reservation of right of the other party) to make, use, sell   and/or import, copy, display, create derivative works, or otherwise exploit the Improvements   within each party’s respective territory;   WHEREAS, GT and GT HK are also parties to (a) that certain License Agreement,   effective as of July 5, 2010 (as modified by that certain Amendment No. 1 to License   Agreement, effective as of April 3, 2011, and as further modified by that certain Polysilicon   Transfer Pricing Analysis and Report for the Calendar Year Ended December 31, 2013, the   “Poly/DSS License Agreement”), (b) that certain Management and Administrative Services   Agreement, effective as of July 5, 2010 (the “2010 Services Agreement”), and (c) that certain   Management and Administrative Services Agreement, effective as of April 3, 2011 (the “2011   Services Agreement” and, together with the ASF License Agreement, the Cost Sharing   Agreement, the Poly/DSS License Agreement, and the 2010 Services Agreement, the   “Prepetition Intercompany Agreements”).).     

 

2      WHEREAS, GT and GT SPE collectively own more than 2,100 ASF Furnaces, and GT   HK owns approximately 240 ASF Furnaces;   WHEREAS, GT asserts that (a) it did not provide the most recent version of 165 kg ASF   Furnace technology to GT HK prior to the Petition Date and (b) even if it has a legal obligation   to provide such technology to GT HK, GT HK must first pay its share of the development costs   for such technology under the Cost Sharing Agreement;   WHEREAS, under the current structure of the ASF License Agreement and the Cost   Sharing Agreement, GT, GT SPE, and GT HK require each other’s cooperation in order to sell   any of their ASF Furnaces outside of the United States;   WHEREAS, following extensive good faith, arm’s-length negotiations among GT, GT   SPE, GT HK, certain unaffiliated holders of notes issued by GT Parent, and other parties in   interest, GT, GT SPE, and GT HK have agreed to enter into that certain Intercompany Settlement   Agreement, dated as of July 20, 2015 (the “Intercompany Settlement Agreement”), which   resolves numerous intercompany issues, including, without limitation, the sale of their ASF   Furnaces in the marketplace and the sharing of proceeds from such sales among them;   WHEREAS, GT and GT HK each desire to assume the ASF License Agreement, as   amended by this First Amendment, subject to the terms and conditions in the Intercompany   Settlement Agreement, including, without limitation, GT HK’s issuance of that certain   Contingent Note, dated July 20, 2015 (the “Contingent Note”) (a copy of which is annexed to the   Intercompany Settlement Agreement), to satisfy, among other things, the cure costs under the   Prepetition Intercompany Agreements;   WHEREAS, under the Intercompany Settlement Agreement, GT HK has agreed to issue   to GT that certain Priority Note, dated July 20, 2015 (the “Priority Note”) (a copy of which is   annexed to the Intercompany Settlement Agreement), to satisfy certain post-petition   administrative expense claims by GT against GT HK; and   WHEREAS, in connection with the Intercompany Settlement Agreement, GT, GT SPE,   and GT HK have entered into that certain Intercompany Sales Agreement, dated July 20, 2015   (the “Intercompany Sales Agreement”) (a copy of which is annexed to the Intercompany   Settlement Agreement) governing the sale of ASF Furnaces by GT and GT SPE to GT HK.    NOW, THEREFORE, in consideration of the mutual promises hereinafter set forth, the   Parties agree as follows:   1. AMENDMENTS TO ASF LICENSE AGREEMENT   1.1 Section 9.1 of the ASF License Agreement is hereby deleted in its entirety and inserted in   place thereof shall be the new Section 9.1:   The term of this Agreement will commence on the Effective Date and will   continue until the later of (a) the Maturity Date (as defined in the Priority Note) of   the Priority Note and (b) the date that the Contingent Note has been repaid in full     

 

3      (including all interest accrued thereupon), unless terminated pursuant to this   Article IX; provided, that beginning on the date that is four years from   Bankruptcy Court approval of the Intercompany Settlement Agreement, each of   GT and GT HK may terminate this Agreement upon no less than three (3) months   prior written notice to the other.     1.2 The following new Sections 9.2 (vii), (viii), and (ix) shall be added at the end of Section   9.2 of the ASF License Agreement:   (vii)  GT HK is in breach of its obligation to pay royalty under Article III of this   Agreement and such failure to pay is not cured within 10 days after GT provided   notice of such non-payment to GT HK.   (viii)  An Event of Default (as defined under the Priority Note or the Contingent Note,   as applicable) has occurred under the Priority Note or the Contingent Note.   (ix)  GT HK is in material breach of any of its obligations under (a) the Intercompany   Settlement Agreement, (b) the Intercompany Sales Agreement, (c) the Cost   Sharing Agreement (as amended by that certain First Amendment to Cost Sharing   Agreement, dated as of July 20, 2015), (d) the Poly/DSS License Agreement (as   amended by that certain Second Amendment to Poly/DSS License Agreement,   dated as of July 20, 2015), (e) the 2010 Services Agreement (as amended by that   certain First Amendment to Management and Administrative Services Agreement   (Effective as of July 5, 2015), dated as of July 20, 2015), or (f) the 2011 Services   Agreement (as amended by that certain First Amendment to Management and   Administrative Services Agreement (Effective as of April 3, 2011), dated as of   July 20, 2015), and such breach is not cured within 10 days after GT provided   notice of such breach to GT HK.   1.3 For sales of ASF Furnaces by GT HK occurring from and after the date the Bankruptcy   Court approves the Intercompany Settlement Agreement (such date, the “Approval   Date”), and until the Contingent Note has been repaid in full, including all interest   accrued thereupon, the payment of a royalty by GT HK to GT under the ASF License   Agreement shall be made as follows:   (i) Notwithstanding anything to the contrary in the ASF License Agreement, with   respect to the sale of any ASF Furnaces owned by GT or GT SPE as of the date   hereof, royalties shall be paid by application of the Contingent Payment (as   defined in the Intercompany Settlement Agreement) in accordance with the   Intercompany Settlement Agreement.   (ii) With respect to the sale of any ASF Furnaces owned by GT HK as of the date   hereof, royalties shall be due and payable by GT HK in accordance with Article   III of the ASF License Agreement and the Parties’ practices prior to the Petition   Date.   1.4 Following payment in full of the Contingent Note, for sales of ASF Furnaces (whether   owned by GT, GT SPE, or GT HK as of the date hereof), GT HK shall resume     

 

4      performance under the ASF License Agreement, without taking into account Section 1.3   of this First Amendment, and make payments thereunder in accordance with the terms of   the ASF License Agreement and the Parties’ practices prior to the Petition Date.   1.5 The issuance of the Priority Note and the Contingent Note, together with the $10 million   cash payment under the Intercompany Settlement Agreement, resolves all of the Parties’   payment obligations under the ASF License Agreement through the end of the second   quarter of 2015.   2. MISCELLANEOUS   2.1 Except as otherwise amended herein, the terms and conditions of the ASF License   Agreement shall remain in full force and effect.   2.2 This First Amendment will be governed by and construed in accordance with the laws of   the State of New Hampshire, USA, without regards to its conflict of law provisions.   2.3 This First Amendment may be executed in counterparts, and when all parties have   executed a copy hereof, the executed copies taken together shall be deemed to be the full   and complete agreement of the Parties.   2.4 The effectiveness of this First Amendment and the obligations of each of the Parties   hereunder are conditioned upon entry of an order by the Bankruptcy Court approving the   Intercompany Settlement Agreement.   [remainder of page intentionally left blank]ex108gtatfirstamendmentt

EXECUTION VERSION   FIRST AMENDMENT TO COST SHARING AGREEMENT    This First Amendment (the “First Amendment”), dated as of July 20, 2015, to the   Agreement for Sharing Development Costs, effective as of April 1, 2011 (the “Cost Sharing   Agreement”), is entered into by and between GTAT Corporation (f/k/a GT Solar Incorporated)   (“Party 1”), a Delaware corporation, and GT Advanced Technologies Limited (f/k/a GT Solar   Hong Kong, Limited) (“Party 2” and, together with Party 1, the “Parties”), a limited liability   company organized and existing under the laws of Hong Kong.  Capitalized terms used in this   First Amendment but not otherwise defined herein shall have the meaning set forth in the Cost   Sharing Agreement.   RECITALS   WHEREAS, on October 6, 2014 (the “Petition Date”), Party 1, Party 2, GT Advanced   Equipment Holding LLC (“GT SPE”), GT Advanced Technologies, Inc. (“GT Parent”), GT   Equipment Holdings, Inc., Lindbergh Acquisition Corp., GT Sapphire Systems Holding LLC,   GT Advanced Cz LLC and GT Sapphire Systems Group LLC (collectively, the “Debtors”) filed   chapter 11 cases in the United States Bankruptcy Court for the District of New Hampshire (the   “Bankruptcy Court”);    WHEREAS, Party 1 and Party 2 are parties to that certain License Agreement, effective   as of April 1, 2011 (as modified by that certain Sapphire Transfer Pricing Analysis and Report   for Fiscal Year Ended March 31, 2012, issued January 21, 2013, the “ASF License Agreement”);   WHEREAS, under the ASF License Agreement, Party 1 granted Party 2, among other   things, the exclusive right and license (without reservation of right to Party 1) to make, have   made, assemble, have assembled, use, sell, and/or import advanced sapphire furnaces (“ASF   Furnaces”) in all countries outside of the United States;   WHEREAS, under the Cost Sharing Agreement, Party 1 and Party 2 agreed, among other   things, to share the costs of the development of improvements to the original technology   platform licensed under the ASF License Agreement;   WHEREAS, under the Cost Sharing Agreement, Party 1 and Party 2 each received the   exclusive right and licenses (without reservation of right of the other party) to make, use, sell   and/or import, copy, display, create derivative works, or otherwise exploit the Developed   Intangibles within each party’s respective territory;   WHEREAS, Party 1 and Party 2 are also parties to (a) that certain License Agreement,   effective as of July 5, 2010 (as modified by that certain Amendment No. 1 to License   Agreement, effective as of April 3, 2011, and as further modified by that certain Polysilicon   Transfer Pricing Analysis and Report for the Calendar Year Ended December 31, 2013, the   “Poly/DSS License Agreement”), (b) that certain Management and Administrative Services   Agreement, effective as of July 5, 2010 (the “2010 Services Agreement”), and (c) that certain   Management and Administrative Services Agreement, effective as of April 3, 2011 (the “2011   Services Agreement” and, together with the ASF License Agreement, the Cost Sharing   Agreement, the Poly/DSS License Agreement, and the 2010 Services Agreement, the   “Prepetition Intercompany Agreements”).     

 

2      WHEREAS, Party 1 and GT SPE collectively own more than 2,100 ASF Furnaces, and   Party 2 owns approximately 240 ASF Furnaces;   WHEREAS, Party 1 asserts that (a) it did not provide the most recent version of 165 kg   ASF Furnace technology to Party 2 prior to the Petition Date and (b) even if it has a legal   obligation to provide such technology to Party 2, Party 2 must first pay its share of the   development costs for such technology under the Cost Sharing Agreement;   WHEREAS, under the current structure of the ASF License Agreement and the Cost   Sharing Agreement, Party 1, GT SPE, and Party 2 require each other’s cooperation in order to   sell any of their ASF Furnaces outside of the United States;   WHEREAS, following extensive good faith, arm’s-length negotiations among Party 1,   GT SPE, Party 2, certain unaffiliated holders of notes issued by GT Parent, and other parties in   interest, Party 1, GT SPE, and Party 2 have agreed to enter into that certain Intercompany   Settlement Agreement, dated as of July 20, 2015 (the “Intercompany Settlement Agreement”),   which resolves numerous intercompany issues, including, without limitation, the sale of their   ASF Furnaces in the marketplace and the sharing of proceeds from such sales among them;    WHEREAS, Party 1 and Party 2 each desire to assume the Cost Sharing Agreement, as   amended by this First Amendment, subject to the terms and conditions in the Intercompany   Settlement Agreement, including, without limitation, Party 2’s issuance of that certain   Contingent Note, dated July 20, 2015 (the “Contingent Note”) (a copy of which is annexed to the   Intercompany Settlement Agreement), to satisfy, among other things, the cure costs under the   Prepetition Intercompany Agreements;   WHEREAS, under the Intercompany Settlement Agreement, Party 2 has agreed to issue   to Party 1 that certain Priority Note, dated July 20, 2015 (the “Priority Note”) (a copy of which is   annexed to the Intercompany Settlement Agreement), to satisfy certain post-petition   administrative expense claims by Party 1 against Party 2; and   WHEREAS, in connection with the Intercompany Settlement Agreement, GT, GT SPE,   and GT HK have entered into that certain Intercompany Sales Agreement, dated July 20, 2015   (the “Intercompany Sales Agreement”) (a copy of which is annexed to the Intercompany   Settlement Agreement) governing the sale of ASF Furnaces by GT and GT SPE to GT HK.    NOW, THEREFORE, in consideration of the mutual promises hereinafter set forth, the   Parties agree as follows:   1. AMENDMENTS TO COST SHARING AGREEMENT   1.1 Section 10.1 of the Cost Sharing Agreement is hereby deleted in its entirety and inserted   in place thereof shall be the following new Section 10.1:   The term of this Agreement will commence on the Effective Date and will   continue until the later of (a) the Maturity Date (as defined in the Priority Note) of   the Priority Note and (b) the date that the Contingent Note has been repaid in full     

 

3      (including all interest accrued thereupon), unless terminated sooner as hereinafter   provided; provided, that beginning on the date that is four years from Bankruptcy   Court approval of the Intercompany Settlement Agreement, each of Party 1 and   Party 2 may terminate this Agreement upon no less than three (3) months prior   written notice to the other.     1.2 The following new Section 10.7 is hereby added to the Cost Sharing Agreement:   Termination After Event of Default Under Priority Note or Contingent Note.  This   Agreement will terminate if an Event of Default (as defined under the Priority   Note or the Contingent Note, as applicable) has occurred under the Priority Note   or the Contingent Note.   1.3 The following new Section 10.8 is hereby added to the Cost Sharing Agreement:   Termination After Material Breach Under ASF License Agreement, DSS/Poly   License Agreement, or Intercompany Sales Agreement.  This Agreement will   terminate if Party 2 is in material breach of any of its obligations under (a) the   Intercompany Settlement Agreement, (b) the Intercompany Sales Agreement, (c)   the ASF License Agreement (as amended by that certain First Amendment to ASF   License Agreement, dated as of July 20, 2015), (d) the Poly/DSS License   Agreement (as amended by that certain Second Amendment to Poly/DSS License   Agreement, dated as of July 20, 2015), (e) the 2010 Services Agreement (as   amended by that certain First Amendment to Management and Administrative   Services Agreement (Effective as of July 5, 2015), dated as of July 20, 2015), or   (f) the 2011 Services Agreement (as amended by that certain First Amendment to   Management and Administrative Services Agreement (Effective as of April 3,   2011), dated as of July 20, 2015), and such breach is not cured within 10 days   after Party 1 provided notice of such breach to Party 2.   1.4 Section 10.5 of the Cost Sharing Agreement is hereby deleted in its entirety and inserted   in place thereof shall be the following new Section 10.5:   Effect of Termination.  Upon any termination under Sections 10.1, 10.2, 10.7, or   10.8, or resulting from Party 2’s default under Section 10.3, all rights of Party 2 in   the Developed Intangibles under Section 7.2 shall transfer immediately to Party 1   without requirement of notice or action of any kind, subject to fair compensation   for such rights after settlement of other claims or liabilities between the Parties.    1.5 Notwithstanding anything to the contrary in the Cost Sharing Agreement, for Intangible   Development Costs incurred pursuant to the Cost Sharing Agreement from and after the   date the Bankruptcy Court approves the Intercompany Settlement Agreement (such date,   the “Approval Date”), Party 1 and Party 2 shall calculate the amount due under the Cost   Sharing Agreement annually.    1.6 Until the Contingent Note has been paid in full, including all interest accrued thereupon,   regardless of the tax treatment of the allocation of Intangible Development Costs, Party 2   shall pay its share of Intangible Development Costs solely by application of the     

 

4      Contingent Payment (as defined in Intercompany Settlement Agreement) in accordance   with the Intercompany Settlement Agreement.  If the full amounts incurred under the   Cost Sharing Agreement cannot be paid from the Contingent Payment, then such unpaid   amounts will be accrued.     1.7 The amounts accrued under Section 1.6 shall be treated as an administrative expense   claim during the chapter 11 case of Party 2 but shall not be paid under a plan of   reorganization proposed by the Debtors; instead, the accrued amount will remain an   intercompany, unsecured obligation of Party 2 following its emergence from chapter 11   and shall thereafter be treated as an unsecured account payable of reorganized Party 2.   1.8 Following payment in full of the Contingent Note, including all interest accrued thereon,   the Parties shall resume performance under the Cost Sharing Agreement, without taking   into account Sections 1.5 and 1.6 of this First Amendment, and make payments   thereunder in accordance with the terms of the Cost Sharing Agreement and the Parties’   practices prior to the Petition Date.   1.9 As soon as reasonably practicable after the Approval Date, Party 1 shall provide Party 2   with the technology necessary to upgrade Party 2’s ASF Furnaces to produce 165 kg   sapphire boules and all further developments under the Cost Sharing Agreement.   1.10 The issuance of the Priority Note and the Contingent Note, together with the $10 million   cash payment under the Intercompany Settlement Agreement, resolves all of the Parties’   payment obligations under the Cost Sharing Agreement through the end of the second   quarter of 2015.   2. MISCELLANEOUS   2.1 Except as otherwise amended herein, the terms and conditions of the Cost Sharing   Agreement shall remain in full force and effect.   2.2 This First Amendment will be governed by and construed in accordance with the laws of   the State of New Hampshire, USA, without regards to its conflict of law provisions.   2.3 This First Amendment may be executed in counterparts, and when all parties have   executed a copy hereof, the executed copies taken together shall be deemed to be the full   and complete agreement of the Parties.   2.4 The effectiveness of this First Amendment and the obligations of each of the Parties   hereunder are conditioned upon entry of an order by the Bankruptcy Court approving the   Intercompany Settlement Agreement.   [remainder of page intentionally left blank]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00247-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00247-of-00352.parquet"}]]