Document:

Exhibit 10.1

 

CITIZENS BANK NEW HAMPSHIRE

 

LOAN AND SECURITY AGREEMENT

 (ALL ASSETS)

 

This Loan and
Security Agreement (All Assets) dated as of April 20, 2007 (the “Agreement”) by and among GT Solar
International, Inc., a Delaware corporation (“GT
International” and/or “Borrower
Agent”), GT Solar Incorporated, a Delaware corporation (“GT Solar”), GT Solar Holdings, LLC, a
Delaware limited liability company (“GT
Holdings”) and GT Equipment Holdings, Inc., a New Hampshire
corporation (“GT Equipment”) (GT
International, GT Solar, GT Holdings and GT Equipment are together, jointly and
severally, the “Borrowers” and
each, individually, a “Borrower”),
the financial institutions which are or which hereafter become a party hereto
(collectively, the “Lenders” and
individually a “Lender”) and
Citizens Bank New Hampshire (“Citizens”),
a New Hampshire banking institution organized and existing under the laws of
New Hampshire, as a Lender and as agent for the Lenders (Citizens, in such
capacity (the “Agent”)).

 

1.             SECURITY INTEREST. Each Borrower, for
valuable consideration, receipt whereof is hereby acknowledged, hereby grants
to Agent for its benefit and for the ratable benefit of each Lender (and each
Affiliate of any Lender party to a Hedging Contract), a continuing security
interest in and to and collaterally assigns to Agent, for its benefit and for
the ratable benefit of each Lender (and each Affiliate of any Lender party to a
Hedging Contract ) all assets of the Borrowers, wherever located and whether
now owned or hereafter acquired, including, without limitation, the following:

 

(a)           all inventory (as
defined in Article 9 of the Uniform Commercial Code), including, without
limitation, all goods, merchandise, raw materials and work in process, finished
goods, and other tangible personal property now owned or hereafter acquired and
held for sale or lease or furnished or to be furnished under contracts of
service or used or consumed in Borrowers’ business (all hereinafter called the “Inventory”);

 

(b)           all accounts (as defined
in Article 9 of the Uniform Commercial Code, hereinafter “Accounts”), contracts, contract rights,
notes, bills, drafts, acceptances, general intangibles (including without
limitation registered and unregistered trade names, copyrights, design rights,
customer lists, goodwill, computer programs, computer records, computer
software, source codes, codes, computer data, registrations, licenses, service
marks, trade secrets, trademarks, trademark applications, patents, patent
applications, ledger sheets, files, records, data processing records relating
to any Accounts, tax refund claims, all claims under guaranties, security
interests or other security held by or granted to the Borrowers to secure
payment of any Receivables and all tax refunds of every kind and nature to
which any Borrower is now or hereafter may become entitled to, no matter how
arising), instruments, documents, chattel paper (whether tangible or
electronic) deposit accounts, letter of credit rights (whether or not the
letter of credit is evidenced by a writing), securities (whether certificated
or uncertificated), security entitlements, security accounts, investment
property, supporting obligations, payment intangibles, choses in action,
commercial tort claims described on Schedule 4(l), hereto (as amended
from time to time), and all other debts, obligations and liabilities in
whatever form, owing to any Borrower from any person, firm or corporation or
any other legal entity, whether

 

1

 

now existing
or hereafter arising, now or hereafter received by or belonging or owing to any
Borrower, for goods sold by it or for services rendered by it, or however
otherwise same may have been established or created, all guarantees and
securities therefor, all right, title and interest of all Borrowers in the
merchandise or services which gave rise thereto, including the rights of
reclamation and stoppage in transit, all rights to replevy goods, and all
rights of an unpaid seller of merchandise or services (all hereinafter called
the “Receivables”);

 

(c)           all machinery,
equipment, fixtures and other goods (as defined in Article 9 of the Uniform
Commercial Code) whether now owned or hereafter acquired by any Borrower and
wherever located, all replacements and substitutions therefor or accessions
thereto and all proceeds thereof (all hereinafter called the “Equipment”);

 

(d)           certain real property,
together with all improvements thereon located at 243 Daniel Webster Highway,
Merrimack, New Hampshire and owned by GT Solar (the “Real Property); and

 

(e)           all proceeds and
products of all of the foregoing in any form, including, without limitation,
all proceeds of credit, fire or other insurance, and also including, without
limitation, rents and profits resulting from the temporary use of any of the
foregoing (which, with Inventory, Receivables, Equipment and Real Property are
all hereinafter called “Collateral”).

 

Notwithstanding
the foregoing, the term “Collateral” does not include:

 

(a)           investment property
consisting of capital securities of a foreign Subsidiary of any Borrower other
than 65% of the total combined voting power of all capital securities of any
direct first-tier foreign Subsidiary;

 

(b)           only any “intent to use”
applications for trademark registrations filed pursuant to Section 1(b) of the
Lanham Act (15 U.S.C. § 1051 et seq.), unless and until an Amendment to Allege
Use or a Statement of Use under Sections 1(c) and 1(d) of the Lanham Act (15
U.S.C. 1051 et seq.) has been filed and accepted by the United States Patent
and Trademark Office;

 

(c)           assets subject to
capital leases or purchase money security interests but only during such time
as such capital leases or purchase money security interest is in place;

 

(d)           licenses, contracts or
agreements which, by their nature, are not immediately assignable without
additional documentation, such as governmental contracts and licenses
containing non-assignment language, but only during such time and for such
licenses, contracts or agreements (i) prior to the time Borrowers obtain
consents to such collateral assignment; or (ii) for which any such collateral
assignment or grant of a security interest in such license, contract or
agreement to the Lenders would cause a default under such license, contract or
agreement which could result in (x) the termination thereof, (y) an assessment
of monetary penalties, or (z) such other penalties which would interfere with
the Borrowers use under such 

 

2

 

license,
contract or agreement, or otherwise causes such licenses, contracts or
agreements to be void;

 

(e)           such other assets set
forth on Schedule 1(d) attached hereto, for which the granting of a
security interest would be void or illegal under any applicable governmental
law, rule or regulation;

 

(f)            Liens in cash
collateralizing the Borrowers’ obligations with respect to issued Letters of
Credit under the SVB Loan and Security Agreement dated as of April 28, 2006, by
and between GT Solar Incorporated (f/k/a GT Equipment Technologies, Inc.) and
Silicon Valley Bank which remain outstanding after the Closing Date, but only
until such time as such cash collateral is released by SVB as and when the
Letters of Credit issued by SVB as and when the Letters of Credit issued by SVB
are returned to SVB for cancellation and replaced with Letters of Credit issued
by Citizens; and

 

(g)           All securities,
investment property, cash, deposits, deposit accounts or other assets held,
maintained or managed in GT Solar’s account at SVB Securities which account
will initially be entitled Silicon Valley Bank as Secured Party for GT Solar
Incorporated’s and numbered 48604416, together with deposit account number
3300538244 held with SVB and together with all GT Solar’s books relating to any
of the foregoing and any and all claims, rights and interests ion any of the
above and all substitutions for, additions and accessions to and products and
proceeds thereof in whatever from including deposit accounts, accounts
(including rights of payment), general intangibles, cash, instruments,
documents and financial assets all in connection with the foregoing, but only
until such time as such collateral is released by SVB or other applicable
parties pursuant to the SVB Security Documents.

 

2.             OBLIGATIONS
SECURED. The security interest granted hereby is to secure payment
and performance of all debts, liabilities and obligations of Borrowers to Agent
and/or the Lenders for the Revolving Loans and the Letters of Credit and also
any and all other debts, liabilities and obligations of Borrowers to Agent and
to Lenders of every kind and description arising under this Agreement and the
Other Documents, direct or indirect, absolute or contingent, primary or
secondary, due or to become due, now existing or hereafter arising, by class,
or kind, or whether or not contemplated by the parties at the time of the
granting of this security interest, and includes obligations to perform acts
and refrain from taking action as well as obligations to pay money including,
without limitation, all interest, including, without limitation, interest which
occurs during any bankruptcy or insolvency proceeding, whether or not such
interest is allowed in such proceeding, fees, charges, expenses and overdrafts,
and also including, without limitation, all obligations and liabilities which
Agent or any Lender may incur or become liable for, on account of, or as a
result of, any transactions between Agent, or any Lender and Borrowers under
this Agreement or the Other Documents, including any which may arise out of any
Letter of Credit issued or caused to be issued for the account of Borrowers and
also including Hedging Obligations and other obligations arising out of any
foreign exchange contracts, interest rate swap, cap, floor or Hedging Contracts
of any Borrower to Agent or any Lender (or any Affiliate of any Lender party to
any such Hedging Contracts) (all hereinafter called “Obligations”).

 

3

 

3.             BORROWERS’
PLACES OF BUSINESS, INVENTORY LOCATIONS AND RETURNS POLICY. Each
Borrower warrants that, as of the date hereof, such Borrower has no places of
business other than places of business are listed on Schedule “A”,
annexed hereto.

 

Each Borrower’s
principal executive office and the office where such Borrower keeps its records
concerning its accounts, contract rights and other property, as of the date
hereof, is set forth on Schedule “A”.
All Inventory owned by any Borrower as of the date hereof, is stored at the
locations set forth on Schedule “A” (other than Inventory out for repair, in
transit or stored at locations where the Borrower has complied with the
proceeding paragraph).

 

Each Borrower
will promptly notify Agent in writing of any change in the location of any
place of business or the location of any Inventory valued in excess of Fifty
Thousand and 00/100 Dollars ($50,000.00) or the establishment of any new place
of business or location of Inventory valued in excess of Fifty Thousand and
00/100 Dollars ($50,000.00) or office where its records are kept in each case
after the date hereof.

 

4.             BORROWERS’
ADDITIONAL  REPRESENTATIONS  AND  WARRANTIES. Each
Borrower represents and warrants that:

 

(a)           Each of GT Solar, GT
International and GT Equipment is a corporation duly organized, validly
existing and in good standing under the laws of the state of its incorporation
and shall hereafter remain in good standing as a corporation in that state, and
is duly qualified and in good standing in every other state in which it is
doing business, and shall hereafter remain duly qualified and in good standing
in every other state in which the failure to qualify or become licensed could
reasonably be expected to have a Material Adverse Effect.

 

(b)           GT Holdings is a
limited liability company duly organized, validly existing and in good standing
under the laws of the state of its formation and shall hereafter remain in good
standing as a limited liability company in that state, and is duly qualified
and in good standing in every other state in which it is doing business, and
shall hereafter remain duly qualified and in good standing in every other state
in which the failure to qualify or become licensed could reasonably be expected
to have a Material Adverse Effect.

 

(c)           As of the date hereof,
each of the Borrower’s exact legal name is as set forth in this Agreement.

 

(d)           As of the date hereof,
the organizational identification number of each Borrower, in its jurisdiction
of organization, is as set forth on Schedule “A” annexed hereto.

 

(e)           The execution, delivery
and performance of this Agreement, and any other document executed by any
Borrower in connection herewith, are within each of Borrower’s corporate or
company powers, as applicable, have been duly authorized, are not in
contravention of law or the terms of such Borrower’s certificate of
organization, charter, bylaws, operating agreement or other incorporation or
formation papers or of any indenture, agreement or undertaking to which any
Borrower is a party or by which it or any of its properties may be bound,
except in each case to the extent such contravention could not reasonably be
expected to result in a Material Adverse Effect.

 

4

 

(f)            All capital stock or
membership interests, as applicable, issued by any Borrower and outstanding was
and is properly issued and all books and records of the Borrower, including but
not limited to its minute books, by-laws and books of account, are accurate in
all material respects.

 

(g)           All of the assets
reflected in the most recent financial statements of the Borrowers provided to
Agent,  are free and clear of any Lien,
except those Liens permitted pursuant to Section  15(h) of this Agreement.

 

(h)           Each Borrower has
timely made or filed (including any extensions) all tax returns, reports and declarations
relating to any material tax liability required by any jurisdiction to which it
is subject; has paid all taxes shown or determined to be due thereon except (i)
those being contested in good faith and which such Borrower has, prior to the
date of such contest, identified in writing to Agent as being contested, and
has made adequate provision for the payment of all taxes so contested, so that
no Lien will encumber any Collateral, and in respect of subsequent periods, or
(ii) any obligations where the failure to pay could not reasonably be expected
to result in a Material Adverse Effect or otherwise violate the covenants set
forth in Section 15(q).

 

(i)            (i) No Borrower is
subject to any charter, corporate or other legal restriction, or any judgment, award,
decree, order, governmental rule or regulation or contractual restriction which
could reasonably be expected to have a Material Adverse Effect, or otherwise
violates the covenants set forth in Article 15 herein, and (ii) each
Borrower is in compliance with its charter documents and by-laws, all
contractual requirements by which it or any of its properties may be bound and
all applicable laws, rules and regulations (including without limitation those
relating to environmental protection) other than laws, rules or regulations the
validity or applicability of which it is contesting in good faith or provisions
of any of the foregoing the failure to comply with which could not reasonably
be expected to result in a Material Adverse Effect.

 

(j)            Except as set forth on
Schedule 4(i) hereto, there
is no action, suit, proceeding or investigation pending or, to any Borrower’s
knowledge, threatened against it or any of its assets before or by any court or
other governmental authority which has a reasonable likelihood of adverse
determination and, if determined adversely to it, would have a Material Adverse
Effect, or otherwise violate the covenants set forth in Section 15(h).

 

(k)           Except as would not
reasonably be expected to result in a Material Adverse Effect: each Borrower is
in compliance with the requirements of the Employee Retirement Income Security
Act of 1974, as amended (“ERISA”)
with respect to each Plan; and no “reportable event,” as defined in Section
5053 of ERISA and other than an event with respect to which the notice
requirement has been waived by regulation (a “Reportable
Event”) has occurred and is continuing with respect to any Plan. The
word “Plan” as used in this
Agreement means any employee benefit plan subject to Title IV of ERISA
maintained for employees of Borrower, any subsidiary of Borrower or any other
trade or business under common control with Borrower within the meaning of
Section 4(14)(c) of the Internal Revenue Code of 1986 or any regulations
thereunder, each an “ERISA Affiliate”).

 

5

 

(l)            Anti-Terrorism Laws.

 

(i)            General.

 

No Borrower, or any Guarantor is in violation of any Anti-Terrorism Law
or engages in or conspires to engage in any transaction that evades or avoids,
or has the purpose of evading or avoiding, or attempts to violate, any of the
prohibitions set forth in any Anti-Terrorism Law.

 

(ii)           Executive Order No.
13224.

 

No Borrower, Guarantor, or any of their respective agents acting or
benefiting in any capacity in connection with the Loans, Letters of Credit or
other transactions hereunder, is any of the following (each a “Blocked Person”):

 

(1)           a
Person that is listed in the annex to, or is otherwise subject to the
provisions of, Executive Order No. 13224;

 

(2)           a
Person owned or controlled by, or acting for or on behalf of, any Person that
is listed in the annex to, or is otherwise subject to the provisions of,
Executive Order No. 13224;

 

(3)           a
Person or entity with which any Lender is prohibited from dealing or otherwise
engaging in any transaction by any Anti-Terrorism Law;

 

(4)           a
Person or entity that commits, threatens or conspires to commit or supports “terrorism”
as defined in Executive Order No. 13224;

 

(5)           a
Person or entity that is named as a “specially designated national” on the most
current list published by the U.S. Treasury Department Office of Foreign Asset
Control at its official website; or

 

(6)           a
Person or entity who is known to be affiliated or associated with a person or
entity listed above.

 

(iii)          Blocked Person or
Transactions.

 

No Borrower,
or any Guarantor (i) conducts any business or engages in making or receiving
any contribution of funds, goods or services to or for the benefit of any
Blocked Person, or (ii) deals in, or otherwise engages in any transaction
relating to, any property or interests in property blocked pursuant to
Executive Order No. 13224.

 

(m)          Schedule 4(m),
attached hereto contains a true, accurate and complete listing of all
commercial tort claims currently held by the Borrowers as of the Closing Date.

 

6

 

5.             LOANS
AND OTHER FINANCIAL ACCOMMODATIONS.

 

I. Revolving Loans.

 

A. Generally.

 

(c)           From time to time upon
the Borrower Agent’s request, so long as (and in no event shall) the sum of the
aggregate principal amount of all Revolving Loans outstanding (plus the sum of
the aggregate amount undrawn on all Letters of Credit) and the requested
Revolving Loan does not exceed the Credit Limit (as defined below) or result in
a violation of any Financial Covenant, then each Lender, severally and not
jointly, shall make such requested Revolving Loan, which shall be advanced
according to the applicable Commitment Percentage of each such Lender, provided
that Borrowers are in compliance with all covenants herein, including without
limitation, the Financial Covenants (based upon information provided to Agent
in the most recently delivered Compliance Certificate, pursuant to the terms
herein and after giving effect to any cash collateral delivered by Borrowers in
connection with such request for borrowing), and there is not continuing any
Default or Event of Default. The aggregate amount of each Lender’s Commitment
Percentage of the Revolving Loans and the Letters of Credit shall not exceed
such Lender’s Commitment Amount, as such Commitment Amount may be amended from
time to time in accordance with the provisions hereof.

 

(d)           All Revolving Loans
shall bear interest pursuant to the applicable terms of Section 5 hereof
and shall be evidenced by and repayable in accordance with each revolving note
drawn to the order of each Lender substantially in the form of Exhibit 1
hereto (each a “Revolving  Credit  Note”),
as the same may hereafter be amended, supplemented or restated from time to
time and any note or notes issued in substitution therefor, but in the absence
of a Revolving Note shall be conclusively evidenced by Agent’s records of loans
and repayments, except to the extent of manifest error. Each payment by
Borrowers on account of the principal of and interest on the Revolving Loans,
shall be applied to the Revolving Loans pro rata according to the applicable
Commitment Percentage of Lenders at the Payment Office (as defined below) of
the Agent or as Agent shall otherwise direct.

 

(c)           Interest on Revolving Loans,
net of those Revolving Loans which bear interest calculated by reference to
LIBOR (as defined below), will be charged to Borrowers at a fluctuating rate
which is the daily equivalent to a rate equal to the Prime Rate plus the
Applicable Margin,  upon any balance
owing to the Lenders with respect to such Revolving Loans, at the close of each
day and shall be payable (i) on the last day of each fiscal quarter in arrears;
(ii) on termination of this Agreement pursuant to  Section 21 hereof; (iii) on acceleration of the time
for payment of the Obligations pursuant to Section 16 hereof; and (iv)
on the date the Obligations are paid in full. The rate of interest payable by
Borrowers shall be changed effective as of that date in which a change in the
Prime Rate becomes effective. Interest shall be computed on the basis of the
actual number of days elapsed over a year of three hundred sixty (360) days.
The term “Prime Rate” as used
herein and in any supplement and amendment hereto shall mean the Prime Rate as
published from time to time in the “Money Rates” section of The  Wall
Street Journal or any successor publication, or in the event that such rate
is no longer published in The Wall Street Journal, a comparable index or
reference selected by Agent and provided to the Borrower Agent. The Prime Rate
need not and may not necessarily be the lowest or most

 

7

 

favorable rate. Interest shall
be payable in lawful money of the United States of America to Lenders at the Payment
Office of the Agent, or as Agent shall direct, without set-off, deduction or
counterclaim quarterly, in arrears, on the first day of each quarter,
commencing on July 1, 2007.

 

Interest on
Revolving Loans, net of Revolving Loans which bear interest calculated by
reference to the Prime Rate, will be charged to Borrowers at a rate which is
the equivalent to the LIBOR Lending Rate (as defined below) plus the Applicable
Margin (as defined below), and shall be payable (i) on the last day of each
Interest Period in arrears; (ii) on termination of this Agreement pursuant to Section
21 hereof; (iii) on acceleration of the time for payment of the Obligations
pursuant to Section 16 hereof; and (iv) on the date the Obligations are
paid in full. All such Interest shall be payable at the end of the applicable
Interest Period. Interest on LIBOR Revolving Loans shall be computed on the
basis of the actual number of days elapsed over a year of three hundred sixty
(360) days.

 

(d)           Changes in the
Applicable Margin shall become effective on the first day of the month next
following delivery of a Compliance Certificate (either scheduled or
supplemental).

 

(e)           The term “Credit Limit” as used herein shall mean an
amount equal to Sixty Million ($60,000,000.00) Dollars, provided however,
that at no time shall amounts outstanding under the Revolving Loan advanced for
purposes of working capital and/or general corporate purposes exceed the
following limitations (which such limitations shall be referred to
collectively, as the “WC  Sub-Limits”, and each, a “WC Sub-Limit”):

 

	
  For the period:

  	
   

  	
  Sub-Limit

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Closing
  through February, 2008

  	
   

  	
  $

  	
  30,000,000.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  March, 2008
  – February, 2009

  	
   

  	
  $

  	
  27,000,000.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  March, 2009
  – March, 2010

  	
   

  	
  $

  	
  24,000,000.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Thereafter, in the event that the Termination
  Date is extended as provided hereunder,

  	
   

  	
  $

  	
  20,000,000.00; or

  	
   

  

 

 

Notwithstanding anything to the
contrary contained herein, the WC Sub-Limits shall be pro–rated hereunder with
the amount of the outstanding Commitment Amounts in order to account for any
event where the total Commitment Amount is less than the total Credit Limit (or
likewise to account for the event of an increase in the Credit Limit pursuant
to Section 5(I)(B) herein). For example, in the event the total Commitment
Amount is Forty Million and 00/100 Dollars ($40,000,000.00), then such initial
WC Sub-Limit would be Twenty Million and 00/100 Dollars ($20,000,000.00).

 

(f)            Each Borrower hereby
authorizes and directs Agent, for the benefit of the Lenders, in Agent’s sole
discretion (provided, however, Agent shall have no obligation to do so)

 

8

 

to pay accrued
interest as the same becomes due and payable pursuant to this Agreement or
pursuant to any note or other agreement between Borrowers and Agent for the
benefit of the Lenders or any Lender as applicable, in connection with the
Obligations (except with respect to any Hedging Contracts), and to treat the
same as a Revolving Loan to Borrowers, which shall be added to the outstanding
Revolving Loan balance pursuant to this Agreement; and during the continuance
of an Event of Default , (i) to charge any of Borrower’s accounts under the
control of Agent or any of its Affiliates and apply such amounts in each case
with respect to repayment of the Obligations in the order set forth in Section
11(a), herein; or (ii) apply the proceeds of Collateral, including, without
limitation, payments on Accounts and other payments from sales or leases of
Inventory and any other funds to the payment of such items, in each case with
respect to repayment of the Obligations in the order set forth in Section
11(a), herein. Agent shall promptly notify Borrower Agent of any such
charges or applications.

 

(g)           The making of Revolving
Loans by the Agent and/or the Lenders to the Borrowers at any time when
Borrowers are not in compliance with any covenants or other conditions
hereunder is for the benefit of the Borrowers and does not affect the
obligations of Borrowers hereunder; all such Revolving Loans constitute
Obligations and must be repaid by Borrowers in accordance with the terms of
this Agreement.

 

(h)           Intentionally Omitted.

 

(i)           As used in this
Agreement, the following terms shall have the following meanings:

 

“Accounts” shall have the meaning set forth
in Section 1(b), herein.

 

“Acts” shall have the meaning set forth in Section
14(p), herein.

 

 “Affiliate”
shall mean any person or entity (i) which directly or indirectly Controls, or
is Controlled by or is under common control with any other Person, (ii) which
directly or indirectly beneficially holds or owns ten (10%) percent or more of
any class of voting stock or membership interest of any such Person, or (iii)
ten (10%) percent or more of the voting stock or membership interest of which is
directly or indirectly beneficially owned or held by any such Person.

 

“Agent” shall have the meaning set forth in
the preamble to this Agreement, including any permitted successor or assign.

 

“Agreement” shall have the meaning set forth
in the preamble to this Agreement.

 

“Anti-Terrorism Laws” shall mean any laws
relating to terrorism or money laundering, including Executive Order No. 13224,
the USA Patriot Act, the laws comprising or implementing the Bank Secrecy Act,
and the Laws administered by the United States Treasury Department’s Office of
Foreign Asset Control (as any of the foregoing Laws may from time to time be
amended, renewed, extended, or replaced).

 

9

 

“Applicable Margin” shall be tied to ratio
of the trailing four quarter Total Funded Debt to Proforma EBITDA (as
determined pursuant to Section 15(b) of the Agreement), and as set forth
below:

 

	
  Ratio of Total

  Funded Debt to

  Proforma EBITDA

  	
   

  	
  LIBOR Margin

  	
   

  	
  Prime Rate Margin

  	
   

  	
  LC Commission

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  >
  2.25x

  	
   

  	
  +2.25% per annum

  	
   

  	
  -0.50% per annum

  	
   

  	
  1.250

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  <2.25x
  and >1.25x

  	
   

  	
  +2.00% per annum

  	
   

  	
  -0.75% per annum

  	
   

  	
  1.125

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  <1.25x

  	
   

  	
  +1.50 per annum

  	
   

  	
  -1.25% per annum

  	
   

  	
  1.000

  	
  %

  

 

“Bankruptcy Code” shall have the meaning set
forth in Section 16(xi), herein.

 

“Benefited Lender”
shall have the meaning set forth in Section 5(V)(d), herein.

 

“Blocked Person” shall mean a person that is
named as a “specially designated national and blocked person” on the most
current list published by the OFAC at its official website or any replacement
website or other replacement official publication of such list.

 

“Borrower” or “Borrowers” shall have the meaning set forth in the preamble.

 

“Borrower Agent” shall have the meaning set
forth in Section 6(a), herein.

 

“Business Day” shall mean:

 

(i)            any
day which is neither a Saturday or Sunday nor a legal holiday on which
commercial banks are authorized or required to be closed in Manchester, New
Hampshire;

 

(ii)           when
such term is used to describe a day on which a borrowing, payment, prepayment,
or repayment is to be made in respect of any LIBOR Rate Loan, any day which is:
(A) neither a Saturday or Sunday nor a legal holiday on which commercial banks
are authorized or required to be closed in New York City; and (B) a London
Banking Day; and

 

(iii)          when
such term is used to describe a day on which an interest rate determination is
to be made in respect of any LIBOR Rate Loan, any day which is a London Banking
Day.

 

“Capital Assets” shall mean assets that, in
accordance with GAAP, are required or permitted to be depreciated or amortized
on the Borrowers’ balance sheet.

 

10

 

 “Capital
Expenditures” shall mean, but not be limited to, amounts paid during
such fiscal year for Capital Assets or Capital Leases (as determined pursuant
to financial statements prepared in accordance with GAAP)  but in any event excluding amounts paid or
financed here for with casualty, condemnation or asset sale proceeds.

 

“Capital Leases”
shall mean as to any Person, the obligations of such Person to pay rent or
other amounts under any lease of (or other arrangement conveying the right to
use) real or personal property, or a combination thereof, which obligations are
required to be classified and accounted for as capital leases on a balance
sheet of such Person under GAAP and, for the purposes of this Agreement, the
amount of such obligations at any time shall be the capitalized amount thereof
at such time determined in accordance with GAAP.

 

“Cash Equivalents”
shall mean, at any time, (i) any evidence of Indebtedness with a maturity date
of one hundred eighty (180) days or less issued or directly and fully
guaranteed or insured by the United States of America or any agency or
instrumentality thereof or any agency or instrumentality thereof; provided,
that, the full faith and credit of the United States of America is pledged in
support thereof; (ii) certificates of deposit or bankers’ acceptances with a
maturity of three hundred and sixty-five (365) days or less of any financial
institution that is a member of the Federal Reserve System having combined
capital and surplus and undivided profits of not less than $500,000,000; (iii)
commercial paper (including variable rate demand notes) with a maturity of
three hundred and sixty-five (365) days or less issued by an entity (except an
Affiliate of any Borrower or Guarantor) organized under the laws of any State
of the United States of America or the District of Columbia and rated at least
A-1 by Standard & Poor’s Ratings Service, a division of The McGraw-Hill
Companies, Inc. or at least P-1 by Moody’s Investors Service, Inc.; (iv)
repurchase obligations with a term of not more than thirty (30) days for
underlying securities of the types described in clause (i) above entered into
with any financial institution having combined capital and surplus and
undivided profits of not less than $500,000,000; (v) repurchase agreements and
reverse repurchase agreements relating to marketable direct obligations issued
or unconditionally guaranteed by the United States of America, or, in each
case, issued by any governmental agency thereof and backed by the full faith
and credit of the United States of America, in each case, maturing within three
hundred and sixty-five (365) days or less from the date of acquisition; and
(vi) investments in money market funds and mutual funds which invest
substantially all of their assets in securities of the types described in
clauses (i) through (v) above.

 

“Cash Flow” shall mean the aggregate of (i)
Net Income (determined in accordance with GAAP), plus (ii) Interest,
depreciation and amortization, plus (iii) an accounting for extraordinary
expenses, including non-recurring charges such as purchase accounting charges,
changes in revenue recognition and non-

 

11

 

cash charges
for stock options minus (iv) distributions, and minus (v) unfinanced Capital
Expenditures.

 

“CIP Regulations”
shall have the meaning set forth in Section 23(m), herein.

 

“Citizens” shall
have the meaning set forth in the preamble.

 

“Closing Date” shall mean April 20, 2007.

 

“CMLTD”  shall mean the current maturity of long-term
Indebtedness paid ( or required to be paid) during the applicable period,
including but not limited to, amounts required to be paid during such period
under Capital Leases, or with respect to amounts paid (or required to be paid)
under any other Subordinated Indebtedness whether now existing or hereafter
incurred.

 

“Collateral” shall have
the meaning set forth in Section 1(e), herein.

 

“Commitment Amount” shall
mean the aggregate principal amount of each Lender’s Commitment Percentage of
the Revolving Loans and the Letters of Credit, as the same may be amended from
time to time in accordance with the provisions of this Agreement. The initial
Commitment Amount of Lenders as of the Closing Date is as follows, and shall be
set forth on Schedule “C”,
as the same may be amended from time to time, as permitted herein:

 

	
  Lender

  	
   

  	
  Commitment Amount

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Citizens Bank
  New Hampshire

  	
   

  	
  $

  	
  40,000,000.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  $

  	
  20,000,000.00

  	
   

  

 

“Commitment Percentage(s)”
of any Lender shall mean the percentage set forth below such Lender’s name on
the signature pages hereof as same may be adjusted upon any assignment by a
Lender pursuant to the terms hereof. The current Commitment Percentages of the
initial Lenders for the Revolving Loan as of the Closing Date are as follows,
and shall be set forth on Schedule “C”,
as the same may be amended from time to time, as permitted herein:

 

	
  Lender

  	
   

  	
  Commitment Percentage

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Citizens
  Bank New Hampshire

  	
   

  	
  66.7

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  33.3

  	
  %

  

 

“Committed Loan”
shall mean a loan made by a Lender pursuant to Section 5(I), herein,
provided that, if any such loan or loans (or portions thereof) are combined or
subdivided pursuant to a Loan Request, the term “Committed Loan” shall refer

 

12

 

to the combined principal amount resulting from such combination or to
each of the separate principal amounts resulting from such subdivision, as the
case may be.

 

“Continuation/Conversion Notice”
shall have the meaning set forth in Section 5(II)(b), herein. 

 

“Control” shall mean the
possession, directly or indirectly, of the power to direct or cause the
direction of the management and policies of any person or entity, whether
through the ownership of voting securities or by contract.

 

“Control Agreements” shall
have the meaning set forth in Section 11(c), herein.

 

“Credit Limit” shall have
the meaning set forth in Section 5(I)(A)(e), herein.

 

“Debt Service Coverage Ratio”
shall mean, during the applicable period, that quotient equal to (a) Cash Flow,
divided by (b) Fixed Charges.

 

“Default” shall mean the
occurrence of any of the events specified in Section 16, whether or not any
requirement for the giving of notice, the lapse of any cure period, or both,
has been satisfied.

 

“Default Rate” shall have
the meaning set forth in Section 16(a), herein.

 

“Defaulting Lender” shall
have the meaning set forth in Section 5(V)(f), herein.

 

“Designated Lender” shall
have the meaning set forth in Section 5(V)(k), herein.

 

 “Distributions” shall mean all payment or distributions to
shareholders in cash or in property other than reasonable salaries, bonuses and
expense reimbursements.

 

“Eligible Assignees” shall
have the meaning set forth in Section 24(a), herein.

 

“Equipment” shall have the
meaning set forth in Section 1(c), herein.

 

“ERISA” shall have the
meaning set forth in Section 4(j), herein.

 

“ERISA Affiliate” shall
have the meaning set forth in Section 4(j), herein.

 

“Event of Default” shall
have the meaning set forth in Section 16, herein.

 

“Excess LC” shall have the
meaning set forth in Section 5(III)(a)(2), herein.

 

“Excess LC Amount” shall
have the meaning set forth in Section 5(III)(a)(2), herein.

 

13

 

“Executive Order No. 13224” shall mean the
Executive Order No. 13224 on Terrorist Financing, effective September 24, 2001,
as the same has been, or shall hereafter be, renewed, extended, amended or
replaced.

 

“Facility” means the
credit facility described herein with respect to the Revolving Loans (including
issuances of Letters of Credit) up to the Credit Limit.

 

“Federal Funds Effective Rate”
for any day shall mean the rate per annum (based on a year of 360 days and
actual days elapsed and rounded upward to the nearest 1/100th of 1%) announced
by the Federal Reserve Bank of New York (or any successor) on such day as being
the weighted average of the rates on overnight federal funds transactions
arranged by federal funds brokers on the previous trading day, as computed and
announced by such Federal Reserve Bank (or any successor) in substantially the
same manner as such Federal Reserve Bank computes and announces the weighted
average it refers to as the “Federal Funds Effective Rate” as of the date of
this Agreement; provided, if such Federal Reserve Bank (or its
successor) does not announce such rate on any day, the “Federal Funds Effective
Rate” for such day shall be the Federal Funds Effective Rate for the last day
on which such rate was announced.

 

“Financial Covenants”
shall mean those certain Borrowers’ Negative Covenants set forth in Sections
15 (a) – (f), herein.

 

“Fixed Charges” shall mean
Interest Expense plus CMLTD.

 

“GAAP” shall mean the
generally accepted accounting principles in the United States as in effect from
time to time, except that for purposes of Section 15 GAAP shall be
determined on the basis of such principles in effect on the date hereof and
consistent with those used in the preparation of the most recent audited
financial statements referred to in Section 15 and in the event that any
“Accounting Change” (as defined
below) shall occur and such change results in a change in the method of
calculation of financial covenants, standards or terms in this Agreement, then
the Borrowers and the Agent and Lenders agree to enter into negotiations in
order to amend such provisions of this Agreement so as to reflect equitably
such Accounting Changes with the desired result that the criteria for
evaluating the Borrowers’ financial condition shall be the same after such
Accounting Changes as if such Accounting Changes had not been made. Until such
time as such an amendment shall have been executed and delivered by the
Borrowers, the Agent and the Required Lenders, (1) all financial covenants,
standards and terms in this Agreement shall continue to be calculated or
construed as if such Accounting Changes had not occurred and (2) the Borrowers
will furnish to the Agent (for distribution to the Lenders), in addition to the
financial statements required to be furnished pursuant to Section 15
(the “Current GAAP Financials”),
(a) the financial statements described in such Section based upon GAAP as in
effect at the time the relevant financial covenant, standard or term 

 

14

 

was agreed to (the “Prior GAAP
Financials”) and (b) a reconciliation between the Prior GAAP
Financials and the Current GAAP Financials. “Accounting
Changes” refers to changes in accounting principles required by the
promulgation of any rule, regulation, pronouncement or opinion by the Financial
Accounting Standards Board (the “FASB”),
the Emerging Issues Task Force (“EITF”)
of the FASB or, if applicable, the SEC. In addition, the definitions set forth
in this Agreement or any Other Document and any financial calculations required
by this Agreement or any Other Document shall be computed to exclude (a) the
effect of purchase accounting adjustments, including the effect of non-cash
items resulting from any amortization, write-up, write-down or write-off of any
assets or deferred charges and (b) the application of FAS 133 (and limited to
the exclusion of any unrealized losses or gains resulting from mark-to-market
of Hedging Agreements), FAS 150 (but solely in connection with additions to or
deductions from net income) or FAS 123r (to the extent that the pronouncements
in FAS 123r result in recording an equity award as a liability on the
consolidated balance sheet of the Borrowers in the circumstance where, but for
the application of the pronouncements, such award would have been classified as
equity).

 

“Governmental Body” shall mean any nation or
government, any state or other political subdivision thereof or any entity
exercising the legislative, judicial, regulatory or administrative functions of
or pertaining to a government.

 

“GT Equipment” shall have the meaning set
forth in the preamble.

 

“GT Holdings” shall have the meaning set
forth in the preamble.

 

“GT International” shall have the meaning
set forth in the preamble.

 

“GT Solar” shall have the meaning set forth
in the preamble.

 

“Guarantor” shall mean, individually, any
present or future guarantor of the whole or any part of the Obligations and
collectively, the “Guarantors,”
provided however, that such term does not mean or include any foreign
Subsidiary.

 

“Hedging Contracts” shall mean interest rate
swap agreements, interest rate cap agreements and interest rate collar
agreements, or any other agreements or arrangements entered into between any
Borrower and any other Person designed to protect the Borrowers against
fluctuations in interest rates or currency exchange rates.

 

“Hedging Obligations” means, with respect to
any Borrower, all liabilities of Borrowers to Agent or any Lender (or any
Affiliate of any Lender) or any other Person under Hedging Contracts.

 

“Increase Effective Date” shall have the
meaning set forth in Section 5(I)(B)(d), herein.

 

15

 

“Increase Option” shall mean during the term
of the Facility, the Borrowers shall have the option to increase the Facility
Amount by a maximum aggregate amount of up to $20,000,000.00

 

“Indebtedness” shall
mean (i) all liabilities for borrowed money, for the deferred purchase price of
property or services (other than trade payables and accrued expenses in the
ordinary course of business), and under Capital Leases, in respect of which a
person or entity is directly or indirectly, absolutely or contingently liable
as obligor, guarantor, endorser or otherwise, or in respect of which such
person or entity otherwise assures a creditor against loss, and (ii) all
liabilities of the type described in (i) above which are secured by (or for
which the holder has an existing right, contingent or otherwise, to be secured
by) any Lien upon property owned by such person or entity, whether or not such
person or entity has assumed or become liable for the payment thereof.

 

“Indemnitee” 
shall have the meaning set forth in Section 25(g), herein.

 

“Interest” or “Interest Expense” shall mean, for the applicable period, all
interest paid in cash (or accrued but not paid), including but not limited to,
interest paid in cash (or accrued but not paid) on Indebtedness (including all
Subordinated Indebtedness) and on Capital Leases, determined in accordance with
GAAP.

 

“Interest Payment Date” shall mean, relative
to any LIBOR Rate Loan, the last Business Day of such Interest Period for LIBOR
Rate Loans having an Interest Period of three months or less and as to LIBOR
Rate Loans having an Interest Period longer than three months, each Business
Day which is three months, or a whole multiple thereof, after the first day of
such Interest Period and the last day of such Interest Period.

 

“Interest Period” shall mean, relative to
any LIBOR Rate Loans:

 

(i)            initially,
the period beginning on (and including) the date on which such LIBOR Rate Loan
is made or continued as, or converted into, a LIBOR Rate Loan pursuant to this
Agreement and ending on (but excluding) the day which numerically corresponds
to such date one, two or three months thereafter (or, if such month has no
numerically corresponding day, on the last Business Day of such month), in each
case as the Borrower Agent may select in its notice pursuant to this Agreement;
and

 

(ii)           thereafter,
each period commencing on the last day of the next preceding Interest Period
applicable to such LIBOR Rate Loan and ending one, two or three months
thereafter, as selected by the Borrower Agent by irrevocable notice to the
Agent not less than two Business Days prior to the last day of the then current
Interest Period with respect thereto;

 

16

 

provided,
however, that

 

(i)            subject
to clause (ii) below, the Borrowers shall not be permitted to select Interest
Periods to be in effect at any one time which have expiration dates of more
than five (5) different dates;

 

(ii)           Interest
Periods for LIBOR Rate Loans in connection with which any Borrower has or may
incur Hedging Obligations with the Agent or any Lender shall be of the same
duration as the relevant periods set under the applicable Hedging Contracts;

 

(iii)          if
such Interest Period would otherwise end on a day which is not a Business Day,
such Interest Period shall end on the next following Business Day unless such
day falls in the next calendar month, in which case such Interest Period shall
end on the first preceding Business Day;

 

(iv)          Interest
Periods commencing on the same date for LIBOR Rate Loans comprising part of the
same advance hereunder shall be of the same duration; and

 

(v)           no
Interest Period may end later than the Termination Date.

 

“Inventory” shall have the meaning set forth
in Section 1(a).

 

“Inventory Sale Financing” shall have the
meaning set forth in Section 15(i).

 

“IPO” shall have the meaning set forth in Section
16(a) (xiii), herein.

 

“Issuing Lender” shall mean Citizens Bank
New Hampshire in its capacity as the Lender issuing the Letters of Credit, and
any permitted successor or assign.

 

“Key Person(s)” shall mean any of a
Borrowers’ Chief Executive Officer, Chief Financial Officer, Chief Operating
Officer, or any other member of any Borrower’s senior management reasonably
agreed upon by such Borrower and Agent.

 

“LC Commission”  shall have the meaning set forth in Section
5(III)(e), herein.

 

“Lender” and “Lenders” shall have the meaning ascribed to such term in the
preamble in this Agreement and shall include each Person which becomes a
permitted transferee, successor or assign of any Lender.

 

“Lender Default”  shall have the meaning set forth in Section
5(V)(f), herein.

 

17

 

“Letter of Credit”
shall mean any standby letter or commercial of credit issued at the request of
the Borrower Agent and for the account of any Borrower in accordance with Section
5(III), herein.

 

“Letter of Credit Request”  shall have the meaning set forth in Section
5 (III)(a)(1).

 

“LIBOR Lending Rate” shall mean, relative to
any LIBOR Rate Loan to be made, continued or maintained as, or converted into,
a LIBOR Rate Loan for any Interest Period, a rate per annum determined pursuant
to the following formula:

 

	
  LIBOR
  Lending Rate

  	
   

  	
  =

  	
   

  	
  LIBOR Rate

  
	
   

  	
   

  	
   

  	
   

  	
  (1.00 - LIBOR Reserve Percentage)

  

 

“LIBOR Notice of Borrowing” shall have the
meaning set forth in Section 5(II)(a), herein.

 

“LIBOR Rate” shall mean, relative to any
Interest Period for LIBOR Rate Loans, the offered rate for deposits of U.S.
Dollars in an amount approximately equal to the amount of the requested LIBOR
Rate Loan for a term coextensive with the designated Interest Period which the
British Bankers’ Association fixes as its LIBOR rate as of 11:00 a.m. London
time on the day which is two London Banking Days (as defined below) prior to
the beginning of such Interest Period.

 

“LIBOR Rate Loan” shall mean, any Revolving
Loan the rate of interest applicable to which is based upon the LIBOR Lending
Rate.

 

“LIBOR Rate Loan Prepayment Fee” shall have
the meaning set forth in Section 5(IV)(b), herein.

 

“LIBOR-Reference Banks Loan”
means any Loan the rate of interest applicable to which is based upon the
LIBOR-Reference Banks Rate.

 

“LIBOR-Reference Banks Lending Rate”
means, relative to a LIBOR-Reference Banks Rate Loan for any Interest Period, a
rate per annum determined pursuant to the following formula:

 

	
  LIBOR-Reference
  Banks Lending 

  	
   

  	
  =

  	
   

  	
  LIBOR-Reference Banks Rate

  
	
  Rate 

  	
   

  	
   

  	
   

  	
  (1.00 –
  LIBOR Reserve Percentage)

  

 

“LIBOR-Reference Banks Rate”
means relative to any Interest Period for LIBOR-Reference Banks Loans, the rate
for which deposits in U.S. Dollars are offered by the Reference Banks to prime
banks in the London interbank market in an amount approximately equal to the
amount requested LIBOR-Reference Banks Loan at approximately 11:00 a.m., London
time on the day that is two London Banking Days prior to the beginning of such
Interest Period. The Bank will

 

18

 

request the
principal London office of each of the Reference Banks to provide a quotation
of its rate. If at least two such quotations are provided, the rate for such
date will be the arithmetic mean of the quotations. If fewer than two
quotations are provided as requested, the rate for such date will be the
arithmetic mean of the rates quoted by major banks in New York City selected by
the Bank, at approximately 11:00 a.m. New York City time for loans in U.S.
Dollars to leading European banks for such Interest Period and in an amount
approximately equal to the amount requested LIBOR-Reference Banks Loan.

 

“LIBOR Reserve Percentage” shall mean,
relative to any day of any Interest Period for LIBOR Rate Loans, the maximum
aggregate (without duplication) of the rates (expressed as a decimal fraction)
of reserve requirements (including all basic, emergency, supplemental, marginal
and other reserves and taking into account any transitional adjustments or
other scheduled changes in reserve requirements) under any regulations of the
Board of Governors of the Federal Reserve System (the “Board”) or other governmental authority
having jurisdiction with respect thereto as issued after the Closing Date from
time to time and then applicable to assets or liabilities consisting of “Eurocurrency
Liabilities”, as currently defined in Regulation D of the Board, having a term
approximately equal or comparable to such Interest Period.

 

“Lien” shall have the meaning set forth in Section
15(h), herein.

 

“London Banking Day” shall mean a day on
which dealings in US dollar deposits are transacted in the London interbank
market.

 

“Material Adverse Effect” shall mean a material
adverse effect on and/or material adverse developments with respect to (a) the
business, assets, liabilities, operations, financial condition or operating
results of the Borrowers and their wholly-owned Subsidiaries (taken as a
whole), (b) the ability of a Borrower or the Borrowers to perform their
Obligations under this Agreement or the Other Documents, to which they are a
party, or (c) the legality, validity, binding effect or enforceability of this
Agreement and/or the Other Documents, or the rights, remedies and benefits
taken as a whole (including the value of the Collateral and perfection and
priority of the Liens in favor of the Agent (for its benefit and for the
benefit of the Lenders) available to the Agent and Lenders under this Agreement
and the Other Documents.

 

“Minimum Deposit” shall have the meaning set
forth in Section 11(c), herein.

 

“Mortgage” shall mean that certain Mortgage
and Security Agreement from GT Solar to Agent, as Mortgagee, dated as of the
date herewith and encumbering that certain real property and improvements as
noted therein.

 

“Multiemployer Plan” shall have the meaning
set forth in Section 16(a)(xviii), herein.

 

19

 

“Net Cash Proceeds”
shall mean (a) in connection with any disposition or any condemnation event,
the proceeds thereof in the form of cash and Cash Equivalents including any
such proceeds received by way of deferred payment of principal pursuant to a
note or installment receivable or purchase price adjustment receivable or
otherwise, but only as and when received, provided
however, that for purposes of calculating threshold levels herein
(including without limitation, those levels set forth in Section 15(g)),
the entire amount of any such cash or Cash Equivalent shall be recognized when
incurred (whether or not actually received at such time), net of (i) attorneys’
fees, accountants’ fees, investment banking fees, and other customary fees and
expenses actually incurred in connection therewith, (ii) amounts required to be
applied to the repayment of Indebtedness secured by a Lien expressly permitted
hereunder on any asset that is the subject of such disposition or condemnation
event (other than any Lien pursuant to the Loan Agreement or Other Documents),
(iii) taxes paid and the Borrowers’ reasonable and good faith estimate of
income, franchise, sales, and other applicable taxes required to be paid by the
Borrowers or any Guarantor in connection with such disposition or condemnation
event, the computation of which shall, in each such case, take into account the
reduction in tax liability resulting from any available operating losses and
net operating loss carryovers, tax credits, and tax credit carry forwards, and
similar tax attributes, (iv) amounts provided as a cash reserve, in accordance
with GAAP, or amounts placed in a funded escrow, against any liabilities under
any indemnification obligations or purchase price adjustments associated with
any disposition, including, without limitation, pension and other post-employment
benefit liabilities and liabilities related to environmental matters or against
any indemnification obligations associated with such transaction (provided
that, to the extent and at the time any such amounts are released from such
reserve, such amounts shall constitute Net Cash Proceeds), and (v) the
Borrowers’ good faith estimate of payments required to be made with respect to
unassumed liabilities relating to the assets sold (provided that, to the extent
such cash proceeds are not so used within the then current fiscal year, such
cash proceeds shall constitute Net Cash Proceeds).

 

 “Net Income”
shall as determined in accordance mean the net income of the Borrowers and
their Subsidiaries, determined in accordance with GAAP.

 

“Non-Defaulting Lenders”
shall have the meaning set forth in Section 5(V)(g), herein.

 

“Note” shall mean each
Revolving Credit Note and “Notes”
shall mean all such Revolving Credit Notes.

 

“Notice of Borrowing”
shall have the meaning set forth in Section 5(II)(c), herein.

 

20

 

“Obligations”
shall have the meaning set forth in Section 2, herein.

 

“OFAC”
shall mean the U.S. Treasury Department Office of Foreign Assets Control.

 

“Other Documents” shall
mean the Notes, any guaranty, and any and all other agreements, instruments and
documents, including, without limitation, guaranties, pledges, Hedging
Contracts or other similar agreements heretofore, now or hereafter executed by
Borrowers or any Guarantor and/or delivered to Agent or any Lender in respect
of the transactions contemplated under this Agreement.

 

“Outstanding” shall
mean with respect to (i) the Loans, the aggregate unpaid principal thereof as
any date of determination, and (ii) Letters of Credit, the aggregate undrawn
face amount of issued Letters of Credit.

 

“Payment Office” shall
mean initially 875 Elm Street, Manchester, New Hampshire 03101; thereafter,
such other office of Agent, if any, which it may designate by written notice to
Borrower Agent and to each Lender to be the Payment Office.

 

“Person” shall mean any individual, sole
proprietorship, partnership, corporation, business trust, joint stock company,
trust, unincorporated organization, association, limited liability company,
institution, public benefit corporation, joint venture, entity or government
(whether federal, state, county, city, municipal or otherwise, including any
instrumentality, division, agency, body or department thereof).

 

“Plan” shall have
the meaning set forth in Section 4(j), herein.

 

“Prime Loan Notice of Borrowing” shall have
the meaning set forth in Section 5(II)(c), herein.

 

“Prime Rate” shall have the meaning set
forth in Section 5(I)(A)(c), herein.

 

“Prime Rate Loan(s)” shall mean, when used
in the singular, any Revolving Loans on which the interest rate is calculated
by reference to the Prime Rate and, when used in the plural, shall mean all
such Revolving Loans.

 

“Proforma EBITDA” shall mean, for the
applicable period, income (loss) from operations calculated in accordance with
GAAP, before the payment of interest and taxes, plus depreciation and
amortization, determined in accordance with GAAP, and excluding an accounting
for extraordinary and non-recurring charges such as purchase accounting
charges, changes in revenue recognition and non-cash charges for stock options,
provided that “Proforma EBITDA” for certain periods shall be as set forth on Schedule 15(a), attached hereto.

 

“Receivables” shall have the meaning set
forth in Section 1(b), herein.

 

21

 

“Reference Banks”
means four major banks in the London interbank market.

 

“Register” shall have the meaning set forth
in Section 24(b), herein.

 

“Registration Fee” shall have the meaning
set forth in Section 24(b), herein.

 

“Reportable Event” shall have the meaning
set forth in Section 4(j), herein.

 

“Required Lenders” shall
mean (a) when there are three (3) or more Lenders which are parties to this
Agreement, those Lenders holding at least sixty-six and two thirds percent (66
2/3%) of the outstanding Revolving Loans and/or commitments and (b) when there
are one (1) or two (2) Lenders which are parties to this Agreement, Lenders
holding at least one hundred percent (100%) of the Revolving Loans.

 

“Responsible Officer”
shall mean, with respect to any Person, the chief executive officer, president,
chief financial officer, treasurer, controller or comptroller, but in any
event, with respect to financial matters, the chief financial officer,
treasurer, controller or comptroller of such Person.

 

“Revolving Credit Note”
shall mean, collectively, the promissory notes made by Borrowers in favor of
each Lender referred to in Section 5I(b) hereof.

 

“Revolving Loan(s)” or “Revolving Credit Loan” shall mean advances
made in the form of revolving loans to Borrowers under Section 5(I)
hereof and shall also include all advances extended under all Letters of Credit
pursuant to Section 5(III) hereof. “Senior
Indebtedness” shall mean any Indebtedness that is not Subordinated
Indebtedness

 

“Settlement Date” shall
mean the Closing Date and thereafter Wednesday or Thursday of each week or more
frequently if Agent deems appropriate unless such day is not a Business Day in
which case it shall be the next succeeding Business Day.

 

“Sponsor Affiliated Lenders”
shall mean GFI Energy Ventures, and funds and managed accounts which are
controlled by any such Person, or an Affiliate of such Person.

 

“Subordinated Indebtedness”
shall mean Indebtedness which is expressly stated to be subordinated or junior
in right of payment to the Borrowers’ Obligations to the Agent in a manner and
form which is reasonably satisfactory to the Agent.

 

“Subsidiary” shall mean,
as to any Person, a corporation, partnership, limited liability company or
other entity of which shares of stock or other equity interests having ordinary
voting power (other than stock or such other equity interests having such power
only by reason of the happening of a contingency) to elect a majority of the
board of directors or other managers of such corporation,

 

22

 

partnership or other entity are at the time owned, or the management of
which is otherwise controlled, directly or indirectly through one or more
intermediaries, or both, by such Person. Unless otherwise qualified, all
references to a “Subsidiary” or to “Subsidiaries” in this Agreement shall refer
to a Subsidiary or Subsidiaries of the Borrowers.

 

“SVB” shall have the
meaning ascribed to it in Section 12, herein.

 

“SVB Payoff” shall have
the meaning ascribed to it in Section 12, herein.

 

“SVB Security Documents”
shall mean, collectively, the Amended and Restated Security Agreement by and
between SVB and GT Solar dated as of April 19, 2007, and those certain
Securities Account Control Agreement by and among SVG Securires, ADP Clearing
& Outsourcing Services, Inc. GT Solar and the Creditor named therein, which
such documents relate to, among other things securities, investment property,
cash, deposits, deposit accounts or other assets held, maintained or managed in
GT Solar Incorporated’s account at SVB Securities which account will initially
be entitled Silicon Valley Bank as Secured Party for GT Solar Incorporated’s
and numbered 48604416, together with deposit account number 3300538244 held
with SVB.

 

“Term” shall mean
the term of this Agreement commencing from the date of execution until the
Termination Date.

 

“Termination Date” shall
have the meaning set forth in Section 21(a), herein.

 

“Total Funded Debt” shall
mean all Subordinated Indebtedness plus the Senior Indebtedness, plus Letters
of Credit issued, minus pledged cash collateral accounts;

 

“Unfinanced Capital Expenditures”
shall mean Capital Expenditures, minus long term Indebtedness issued during the
applicable period for the acquisition of Capital Assets.

 

“Uniform Commercial Code”
shall have the meaning set forth in Section 25(e), herein.

 

“Unused Line Fee” shall
have the meaning set forth in Section 5(VI)(h), herein.

 

“USA Patriot Act” shall
mean the Uniting and Strengthening America by Providing Appropriate Tools
Required to Intercept and Obstruct Terrorism Act of 2001, Public Law 107-56, as
the same has been, or shall hereafter be, renewed, extended, amended or
replaced.

 

“WC Sub-Limits”
shall have the meaning set forth in Section 5(I)(A)(e), herein.

 

23

 

“Week” shall mean the time
period commencing with the opening of business on a Wednesday and ending on the
end of business the following Tuesday.

 

B.            The
Increased Loan Amount.

 

(a)           Request for Increase. During the term
of the Facility, the Borrowers shall have the option to increase the Facility
Amount by a maximum aggregate amount of up to $20,000,000.00 (the “Increase Option”). Borrowers may exercise
said Increase Option at any time by providing notice to the Agent (which shall
promptly notify the Lenders), provided however, (a) that at the time of the
exercise of such option, there is no Default or Event of Default which shall
have occurred and be continuing; (b) in no event shall the existence of this
Increase Option be deemed a commitment on the part of any Lender until such
time as such Lender in writing agrees to increase its commitment or a new
Lender issues a written commitment for any such amounts in excess of the
Commitment Amount in effect as of the date such Increase Option is exercised,
and then in such event, such increase to the Facility Amount shall only be to
the extent of the increased commitment or new Commitment Amounts; (c) at the
time of sending such notice, the Borrowers (in consultation with the Agent)
shall specify the time period within which each existing Lender is requested to
respond as to whether such Lender agrees to increase the amount of its
Commitment in accordance with Section 5(1)(B)(b), below;  (d) any such increase shall be in a minimum
amount of $5,000,000.00 with minimum increments of $1,000,000.00 above that
amount, and a maximum aggregate increase of $20,000,000.00; and (e) any such
increase shall be integrated into this Agreement and shall be subject to the
same terms and conditions as this Agreement.

 

(b)           Lender Elections to Increase. Each
Lender shall notify the Agent within such time period specified in said notice,
whether or not it agrees, in its sole discretion, to increase its Commitment
and, if so, by what amount (which need not be its pro rata share thereof). Any
Lender not responding within such time period shall be deemed to have declined
to increase its Commitment.

 

(c)           Notification by Agent; Additional Lenders.
The Agent shall notify the Borrowers and each Lender of the Lenders’ responses
to each request made hereunder. To achieve the full amount of a requested
increase in the Facility Amount and subject to the approval of the Agent and
the Issuing Bank (which approvals shall not be unreasonably withheld), the
Borrowers may also invite additional Eligible Assignees (as defined in Section
24 herein) to become Lenders pursuant to a joinder agreement in form and
substance reasonably satisfactory to the Agent, its counsel, and provided there
is no Event of Default continuing hereunder, the Borrower Agent.

 

(d)           Effective Date and Allocations. If
the aggregate Commitments (including due to new Commitments by additional
Lenders) are increased in accordance with this Section 5(I)(B), the
Agent and the Borrowers shall determine the effective date (the “Increase Effective Date”) and the final
allocation of such increase. The Agent 

 

24

 

shall promptly notify the Borrowers and the Lenders (including any
additional Lenders) of the final allocation of such increase and the Increase
Effective Date.

 

(e)           Conditions to Effectiveness of Increase.
Any increase in the Facility amount pursuant to this Section 5(I)(B)
shall be subject to satisfaction of the following conditions:

 

(i)            The Borrowers shall have paid to (A) the Agent,
such fees as shall be due to Agent at such time and in connection with such
Increase, and (B) to each Lender, such fees, if any, as shall have been
mutually agreed upon by the Borrower Agent and the Agent at or prior to the
exercise of the Increase Option.

 

(ii)           As of the Increase Effective Date, no
Default or Event of Default then exists and is continuing or would result from
such increase in the Facility Amount (including on a pro forma basis relative
to financial covenant compliance).

 

(iii)          The Borrowers shall have delivered to the
Agent a certificate dated as of the Increase Effective Date (in sufficient
copies for each Lender) (A) certifying and attaching the resolutions adopted by
the Borrowers approving or consenting to such increase, and (B) certifying
that, before and after giving effect to such increase, (1) the representations
and warranties of the Borrowers in this Agreement and in each other Loan
Document are true and correct in all material respects on and as of the
Increase Effective Date, except to the extent that such representations and
warranties specifically refer to an earlier date, in which case, to the
knowledge of the Borrowers, they are true and correct in all material respects
as of such earlier date, and except to the extent of changes resulting from
transactions contemplated and permitted by this Agreement and changes occurring
in the ordinary course of business (in each case to the extent not constituting
a Default or Event of Default), and (2) no Default or Event of Default exists
and is continuing or would result from such increase in the Facility amount
(including on a pro forma basis relative to Financial Covenant compliance).

 

(iv)          The Borrowers shall prepay any Committed
Loans outstanding on the Increase Effective Date (and pay any additional
amounts required with respect to any LIBOR Rate Loan associated with such
prepayment) to the extent necessary to keep the outstanding Committed Loans
ratable with any revised Commitment allocations arising from any nonratable
increase in the Commitments under this Section 5(I)(B). Notwithstanding
any provisions of this Agreement to the contrary, the Borrowers may borrow from
the Lenders providing such increase in the Commitments (on a non pro rata basis
with Lenders not providing such increase) in order to fund such prepayment.

 

(v)           The Borrowers will execute and deliver to
each applicable Lender a new Note in the appropriate stated amount, and will
execute and deliver or otherwise provide to the Agent and the Lenders such
other documents and instruments consistent with the terms of this Agreement, as
the Agent or Lenders reasonably may require.

 

25

 

(f)            The provisions of this Section 5(I)(B)
shall not constitute a “commitment” to lend, and the Commitments of the Lenders
shall not be increased until satisfaction or waiver of the provisions of this Section
5(I)(B) and actual increase of the Commitments as provided herein.

 

II.            Borrowing
Procedures.

 

(a)           LIBOR Loan Request.
Lenders shall not be required to make a LIBOR Rate Loan, or convert a Prime
Rate Loan into a LIBOR Rate Loan, unless Agent shall have received from the
Borrower Agent a request for such LIBOR Rate Loan, in substantially the form of
Exhibit 3 annexed hereto (herein a
“LIBOR  Notice of Borrowing”). By delivering a borrowing request
(i.e., Notice of Borrowing) to the Agent on or before 1:00 pm., New York time,
on a Business Day, the Borrower Agent may from time to time irrevocably
request, on not less than two Business Days’ notice, a Revolving Loan in a
minimum amount of One Hundred Thousand Dollars ($100,000.00) with integral
multiples of Fifty Thousand Dollars ($50,000.00) with an Interest Period of
one, two or three months. On the terms and subject to the conditions of this Agreement,
each LIBOR Rate Loan shall be made available to the Borrowers no later than
11:00 a.m. New York time on the first day of the applicable Interest Period by
deposit to the account of the Borrowers as shall have been specified in its
borrowing request.

 

(b)           Continuation and
Conversion Elections. By delivering a continuation/conversion notice (“Continuation/Conversion Notice”) to the
Agent on or before 1:00 p.m., New York time, on a Business Day, the Borrower
Agent may from time to time irrevocably elect, on not less than two (2)  Business
Days’ notice, that all, or any portion in an aggregate minimum amount of One
Hundred Thousand Dollars ($100,000.00) with integral multiples of Fifty
Thousand Dollars ($50,000.00) of any LIBOR Rate Loan be converted on the last
day of an Interest Period into a LIBOR Rate Loan with a different Interest
Period, or continued on the last day of an Interest Period as a LIBOR Rate Loan
with a similar Interest Period, provided,  however, that no
portion of the outstanding principal amount of any LIBOR Rate Loans may be
converted to, or continued as, LIBOR Rate Loans when any Default or Event of
Default has occurred and is continuing, and no portion of the outstanding
principal amount of any LIBOR Rate Loans may be converted to LIBOR Rate Loans
of a different duration if such LIBOR Rate Loans relate to any Hedging
Obligations related to any Hedging Contracts with respect to interest rates. In
the absence of delivery of a continuation/conversion notice with respect to any
LIBOR Rate Loan at least two Business Days before the last day of the then
current Interest Period with respect thereto, such LIBOR Rate Loan shall, on
such last day, automatically convert to a Revolving Loan that accrues interest
by reference to the Prime Rate.

 

(c)           Prime Rate Loan.
Lenders shall not be required to make a Prime Rate Loan unless Agent shall have
received from the Borrower Agent a request for such Prime Rate Loan (the “Prime Loan Notice of Borrowing”). By
delivering a written borrowing request to the Agent on or before 12:00 p.m.,
New York time, on a Business Day of the requested borrowing, the Borrower Agent
may from time to time irrevocably

 

26

 

request,  a Revolving Loan Advance in a minimum amount of
Ten Thousand ($10,000.00) Dollars with integral multiples of Ten Thousand
($10,000.00) Dollars. On the terms and subject to the conditions of this
Agreement, each Prime Rate Loan shall be made available to the Borrowers no
later than 3:00 p.m. New York time on the effective date specified therefore by
deposit to the account of the Borrowers as shall have been specified in its
borrowing request. For purposes herein, each of the LIBOR Notice of Borrowing,
the Continuation/Conversion Notice and a Prime Loan Notice of Borrowing may be
referred to as “Notice of Borrowing”)

 

(d)           Certification. Upon
delivery of a Notice of Borrowing, Borrowers shall be deemed to have certified
that no Default or Event of Default shall have occurred and be continuing or
created as a result of the borrowing being requested and all representations
and warranties contained herein and in all of the Other Loan Documents are true
and complete in all material respects, except to the extent such representation
and warranty relates to an earlier date, and in such case, the representation
and warranties are true and correct in all material respects as of such date of
said Notice of Borrowing; additionally, upon request by the Agent, the Borrower
Agent shall deliver to Agent a completed Borrower’s Certificate in
substantially the form of Exhibit 2
attached hereto and made a part hereof.

 

III.           Letters of Credit.

 

(a)           (1)           Subject to the terms
and conditions set forth in this Agreement, at any time and from time to time
from the Closing Date through the Termination Date, the Issuing Lender shall
issue such Letters of Credit as the Borrowers may request upon the delivery of
a written request in the form of Exhibit 6
hereto (a “Letter of Credit Request”)
to the Issuing Lender, provided that (i) no Default or Event of Default shall
have occurred and be continuing, (ii) except as set forth in Section
5(III)(a)(2), below, in no event shall the sum of (A) the Revolving Loans
Outstanding and (B) the amount of Letters of Credit Outstanding (after giving
effect to all Letters of Credit requested and drawings made under any Letters
of Credit but not reimbursed) exceed the total maximum Commitment Amount, (iii)
all representations and warranties contained herein and in all of the Other
Documents are true and complete in all material respects, except to the extent
any such representation or warranty relates to an earlier date, and in such
case such applicable representations and warranties are true and correct in all
material respects of such date, and (iv) in no event shall any amount drawn
under a Letter of Credit be available for reinstatement or a subsequent drawing
under such Letter of Credit. Each Letter of Credit Request shall be for a
Letter of Credit in a minimum aggregate amount of $5,000. Each Letter of Credit
Request shall be executed by a Responsible Officer of Borrower Agent. The
Issuing Lender shall be entitled to conclusively rely on such Person’s
authority to request a Letter of Credit on behalf of Borrowers. The Issuing
Lender shall have no duty to verify the authenticity of any signature appearing
on a Letter of Credit Request. The Borrowers assume all risks with respect to
the use of the Letters of Credit. The amount available to be drawn under any
Letter of Credit shall reduce on a dollar-for-dollar basis the amount available
to be drawn under the Credit Limit as a Revolving Loan.

 

(2)           Notwithstanding
the aforesaid, the Agent, in its sole discretion, may allow the issuance of
Letters of Credit to exceed that amount which would result in a 

 

 

27

 

violation of
one or more Financial Covenants (based upon information provided to Agent in
the most recently delivered Compliance Certificate, pursuant to the terms
herein), but in any event not to exceed the maximum Credit Limit (the “Excess LC Amount”; the Letters of Credit
issued in connection with any Excess LC Amount shall be referred to
collectively, as the “Excess LCs”
and individually, as an “Excess LC”),
provided however, that (i) there
shall not then exist a Default or Event of Default hereunder, (ii) the issuance
of the Excess LCs does not otherwise create a Default hereunder; and (iii) the
Borrowers shall post cash collateral with the Agent for the full amount of the
Excess LCs (including any portion of a Letter of Credit that exceeds the Credit
Limit). For all other purposes hereunder, any Excess LC shall be treated as
Letter of Credit hereunder.

 

(b)           Each
Letter of Credit Request shall be submitted to the Issuing Lender at least
three (3) Business Days (or such shorter period as the Issuing Lender may
approve) prior to the date upon which the requested Letter of Credit is to be
issued. Each such Letter of Credit Request shall contain (i) a statement as to
the purpose for which such Letter of Credit shall be used (which purpose shall
be in accordance with the terms of this Agreement), and (ii) a certification by
a Responsible Officer of Borrower Agent that the Borrowers are and will be in
compliance with all covenants under the Loan Documents after giving effect to
the issuance of such Letter of Credit, and otherwise that no Default or Event
of Default has occurred and is continuing. The Borrowers shall further deliver
to the Issuing Lender such additional applications and documents as the Issuing
Lender may require, in conformity with the then standard practices of its
letter of credit department, in connection with the issuance of such Letter of
Credit; provided that in the event of any conflict, the terms of this Agreement
shall control.

 

(c)           The
Issuing Lender shall, if it approves of the content of the Letter of Credit
Request (which approval shall not be unreasonably withheld, conditioned or
delayed), and subject to the conditions set forth in this Agreement, issue the
Letter of Credit on or before three (3) Business Days following receipt of the
documents last due pursuant to Section 5III(b), above. Each Letter of Credit
shall be in form and substance reasonably satisfactory to the Issuing Lender in
its reasonable discretion, and no Letter of Credit shall have an expiration
date later than six (6) months following the Termination Date. Upon issuance of
a Letter of Credit, the Issuing Lender shall provide notice of the issuance of
such Letter of Credit to the Lenders and shall provide a copy of such Letter of
Credit to any Lender that requests a copy.

 

(d)           Upon
the issuance of a Letter of Credit, each Lender shall be deemed to have
purchased a participation therein from Issuing Lender in an amount equal to its
respective Commitment Percentage of the amount of such Letter of Credit. No
Lender’s obligation to participate in a Letter of Credit shall be affected by
any other Lender’s failure to perform as required herein with respect to such
Letter of Credit or any other Letter of Credit.

 

(e)           There
shall be no fee based upon the face amount of any Letter of Credit in
connection with the issuance thereof. Borrowers shall however, pay to Agent for
the accounts of the Lenders in accordance with their respective percentage
shares of participation in such Letter of Credit, a Letter of Credit Commission
fee (the “LC Commission”)
calculated at the rate per annum equal to a percentage of the face amount of
such Letter of Credit. The LC Commission rate shall be set at the time of
issuance of the applicable Letter of Credit and calculated according to the fee
schedule set forth in the definition of “Applicable Margin” in Section
5(I)(A)(i), and which such LC Commission

 

28

 

Fees shall be
payable in quarterly installments in arrears with respect to each Letter of
Credit on the fifth day following the end of each calendar quarter after the
date of issuance and continuing for each quarter or portion thereof thereafter,
as applicable, or on any earlier date on which the Commitments shall terminate
and on the expiration or return of any Letter of Credit. In the event that
Borrowers deliver cash collateral to the Agent in connection with and for the
full amount of a requested Letter of Credit at the time of such request, then the
LC Commission rate for such Letter of Credit shall be set at the lowest LC
Commission rate provided herein. In addition, the Borrowers shall pay to
Issuing Lender for its own account within five (5) days of demand of Issuing
Lender the standard and reasonable issuance, documentation and service charges
for Letters of Credit issued from time to time by Issuing Lender, provided
however that so long as Issuing Lender is Citizens, if Borrowers have not made
such payment to Citizens within said five (5) day period, then Agent shall make
such payment and treat the same as a Revolving Loan for working capital
purposes.

 

(f)            In
the event that any amount is drawn under a Letter of Credit by the beneficiary
thereof, the Borrowers shall cause the Issuing Lender to be reimbursed as
follows: (i) Agent shall immediately and without notice to Borrowers, treat
such amount drawn as a Revolving Loan under this Agreement for working capital
purposes. The Agent shall promptly notify each Lender by telex, telecopy,
telegram, telephone (confirmed in writing) or other similar means of
transmission, and each Lender shall promptly and unconditionally pay to the
Agent, for the Issuing Lender’s own account, an amount equal to such Lender’s
Commitment Percentage of such Letter of Credit (to the extent of the amount
drawn). If and to the extent any Lender shall not make such amount available on
the Business Day on which such draw is funded, such Lender agrees to pay such
amount to the Agent forthwith on demand, together with interest thereon, for
each day from the date on which such draw was funded until the date on which
such amount is paid to the Agent, at the Federal Funds Effective Rate until
three (3) days after the date on which the Agent gives notice of such draw and
at the Federal Funds Effective Rate plus 1% for each day thereafter. Further,
such Lender shall be deemed to have assigned any and all payments made of
principal and interest on its Loans, amounts due with respect to its
participations in Letters of Credit and any other amounts due to it hereunder
to the Agent to fund the amount of any drawn Letter of Credit which such Lender
was required to fund pursuant to this Section 5(III)(f) until such
amount has been funded (as a result of such assignment or otherwise). In the event
of any such failure or refusal, the Lenders not so failing or refusing shall be
entitled to a priority position as against the Lender or Lenders so failing or
refusing to make such funds available to the Borrowers, for such amounts as
provided in Section 5(V). The failure of any Lender to make funds
available to the Agent in such amount shall not relieve any other Lender of its
obligation hereunder to make funds available to the Agent pursuant to this Section
5(III)(f).

 

(g)           If
after the issuance of a Letter of Credit pursuant to Section 5(III) by
the Issuing Lender, but prior to the funding of any portion thereof by a
Lender, one of the events described in Section 16(a)(i) or (viii) shall
have occurred, each Lender will, on the date such Revolving Credit Loan
pursuant to Section 5(III)(f) was to have been made, purchase an
undivided participation interest in the Letter of Credit in an amount equal to
its Revolving Credit Commitment Percentage of the amount of such Letter of
Credit. Each Lender will immediately transfer to the Issuing Lender in
immediately available funds the amount of its participation and upon receipt
thereof the Issuing Lender will deliver to such Lender a Letter of Credit
participation certificate dated the date of receipt of such funds and in such
amount.

 

29

 

(h)           Whenever
at any time after the Issuing Lender has received from any Lender any such
Lender’s payment of funds under a Letter of Credit and thereafter the Issuing
Lender receives any payment on account thereof, then the Issuing Lender will
distribute to such Lender its participation interest in such amount
(appropriately adjusted in the case of interest payments to reflect the period
of time during which such Lender’s participation interest was outstanding and
funded); provided, however, that in the event that such payment received by the
Issuing Lender is required to be returned, such Lender will return to the
Issuing Lender any portion thereof previously distributed by the Issuing Lender
to it.

 

(i)            The
issuance of any supplement, modification or amendment affecting the amount of
any Letter of Credit or any renewal or extension of the term for more than
thirty (30) days to any Letter of Credit shall be treated in all respects the
same as the issuance of a new Letter of Credit.

 

(j)            Borrowers
assume all risks of the acts, omissions, or misuse of any Letter of Credit by
the beneficiary thereof. To the extent permitted by applicable law, none of the
Agent, Issuing Lender or any Lender will be responsible for (i) the form,
validity, sufficiency, accuracy, genuineness or legal effect of any document
submitted by any party in connection with the issuance of any Letter of Credit,
even if such document should in fact prove to be in any or all respects
invalid, insufficient, inaccurate, fraudulent or forged; (ii) errors,
omissions, interruptions or delays in transmission or delivery of any messages,
by mail, cable, telegraph, telex or otherwise; (iii) any loss or delay in the
transmission or otherwise of any document or draft required by or from a
beneficiary in order to make a disbursement under a Letter of Credit or the
proceeds thereof; (iv) for the misapplication by the beneficiary of any Letter
of Credit of the proceeds of any drawing under such Letter of Credit; and (v)
for any consequences arising from causes beyond the control of Agent or any
Lender. Provided there exists no negligence or willful misconduct on the part
of the Agent, Issuing Lender or any Lender, then none of Agent, Issuing Lender
or any Lender will be responsible for (i) failure of any beneficiary of any
Letter of Credit to comply fully with the conditions required in order to
demand payment under a Letter of Credit; (ii) errors in interpretation of
technical terms; (iii) the form, validity, sufficiency, accuracy, genuineness
or legal effect of any Letter of Credit; and (iv) the form, validity,
sufficiency, accuracy, genuineness or legal effect of any instrument
transferring or assigning or purporting to transfer or assign any Letter of
Credit or the rights or benefits thereunder or proceeds thereof in whole or in
part, which may prove to be invalid or ineffective for any reason.
Notwithstanding the foregoing, in no event shall the Lender be responsible for
any acts of fraud or forgery by Borrowers any of its Subsidiaries or any third
party in connection with the issuance, transfer, presentment or payment under
or in connection with any Letter of Credit. None of the foregoing will affect,
impair or prevent the vesting of any of the rights or powers granted to Agent,
Issuing Lender or the Lenders hereunder. In furtherance and extension and not
in limitation or derogation of any of the foregoing, any act taken or omitted
to be taken by Agent, Issuing Lender or the other Lenders in good faith will be
binding on Borrowers and will not put Agent, Issuing Lender or the other
Lenders under any resulting liability to Borrowers.

 

(k)           An
Issuing Lender may resign as Issuing Lender hereunder at any time upon at least
sixty (60) days prior notice to the Lenders, the Agent and the Borrower Agent.
The Issuing Lender may be replaced at any time by written agreement among the
Borrowers, each Agent, the replaced Issuing Lender and the successor Issuing
Lender. The

 

30

 

Agent shall
notify the Lenders of any such replacement of the Issuing Lender or any such
additional Issuing Lender. At the time any such resignation or replacement
shall become effective, the Borrowers shall pay all unpaid fees accrued for the
account of the replaced Issuing Lender. From and after the effective date of
any such resignation or replacement or addition, as applicable, (a) the
successor or additional Issuing Lender shall have all the rights and
obligations of the Issuing Lender under this Agreement with respect to Letters
of Credit to be issued by it thereafter and (b) references herein to the term “Issuing
Lender” shall be deemed to refer to such successor or such addition or to any
previous Issuing Lender, or to such successor or such addition and all previous
Issuing Lenders, as the context shall require. After the resignation or
replacement of an Issuing Lender hereunder, the replaced Issuing Lender shall
remain a party hereto and shall continue to have all the rights and obligations
of an Issuing Lender under this Agreement with respect to Letters of Credit
issued by it prior to such resignation or replacement, but shall not be
required to issue additional Letters of Credit. If at any time there is more
than one Issuing Lender hereunder, the Borrower Agent may, in its discretion,
select which Issuing Lender is to issue any particular Letter of Credit.

 

IV.           Repayments,
Prepayments and Interest.

 

(a)           Repayments,
Continuations and Conversions. LIBOR Rate Loans shall mature and become
payable in full on the last day of the Interest Period relating to such LIBOR
Rate Loan. Prior to the termination of this Agreement, upon maturity of any
LIBOR Rate Loan, such Revolving Loan may be continued for an additional
Interest Period or may be converted to a Prime Rate Loan, as set forth above
(unless there exists any Default or Event of Default and the Agent does not
otherwise elect to exercise any right to accelerate the Loans it is granted
hereunder).

 

(b)           Voluntary Prepayment
of LIBOR Rate Loans. LIBOR Rate Loans may be prepaid upon the terms and
conditions set forth herein. For LIBOR Rate Loans in connection with which the
Borrowers have or may incur Hedging Obligations, additional obligations may be
associated with prepayment in accordance with the terms and conditions of the
applicable Hedging Contracts. The Borrower Agent shall give the Agent, no later
than 1:00 p.m., New York City time, at least two (2) Business Days notice of
any proposed prepayment of any LIBOR Rate Loans, specifying the proposed date
of payment of such LIBOR Rate Loans, and the principal amount to be paid. Each
partial prepayment of the principal amount of LIBOR Rate Loans shall be in an
integral multiple of One Hundred Thousand Dollars ($100,000.00)  and accompanied by the payment of all charges
outstanding on such LIBOR Rate Loans and of all accrued interest on the
principal repaid to the date of payment. Borrowers acknowledge that prepayment
or acceleration of a LIBOR Rate Loan during an Interest Period shall result in
the Agent incurring additional costs, expenses and/or liabilities and that it
is extremely difficult and impractical to ascertain the extent of such costs,
expenses and/or liabilities. Therefore, all full or partial prepayments of
LIBOR Rate Loans shall be accompanied by, and the Borrowers hereby promise to
pay, on each date a LIBOR Rate Loan is prepaid or the date all sums payable
hereunder become due and payable, by acceleration or otherwise, in addition to
all other sums then owing, an amount (“LIBOR
Rate Loan Prepayment Fee”) determined by the Agent pursuant to the
following formula:

 

31

 

(i)            the
then current rate for United States Treasury securities (bills on a discounted
basis shall be converted to a bond equivalent) with a maturity date closest to
the end of the Interest Period as to which prepayment is made, subtracted
from

 

(ii)           the
LIBOR Lending Rate plus the Applicable Margin applicable to the LIBOR Rate Loan
being prepaid.

 

If the result
of this calculation is zero or a negative number, then there shall be no LIBOR
Rate Loan Prepayment Fee. If the result of this calculation is a positive
number, then the resulting percentage shall be multiplied by:

 

(iii)          the
amount of the LIBOR Rate Loan being prepaid.

 

The resulting
amount shall be divided by:

 

(iv)          360

 

and multiplied
by:

 

(v)           the
number of days remaining in the Interest Period as to which the prepayment is
being made.

 

Said amount
shall be reduced to present value calculated by using the referenced United
States Treasury securities rate and the number of days remaining in the
Interest Period for the LIBOR Rate Loan being prepaid.

 

The resulting
amount of these calculations shall be the then applicable LIBOR Rate Loan
Prepayment Fee.

 

(c)           Interest Provisions
Interest on the outstanding principal amount of any Loan when classified as a:
(i) LIBOR Rate Loan shall accrue during each Interest Period at a rate equal to
the sum of the LIBOR Lending Rate for such Interest Period plus the Applicable
Margin thereto and be payable on each Interest Payment Date, (ii)
LIBOR-Reference Banks Rate Loan shall accrue during each Interest Period at a
rate equal to the sum of the LIBOR-Reference Banks Lending Rate for such
Interest Period plus the Applicable Margin thereto and be payable on each
Interest Payment Date, and (iii) Prime Rate Loan shall accrue during each
Interest Period at a rate equal to the Prime Rate and be payable on each
Interest Payment Date.

 

(d)           On termination of this
Agreement, pursuant to Section 21 or acceleration of the obligations
pursuant to Section 16, Borrowers shall pay to Agent the entire
outstanding principal balance of all Revolving Loans and all other Obligations
of Borrowers to Agent and shall deliver to Agent cash collateral in an amount
equal to one hundred three (103%) percent of the aggregate of amounts then
undrawn on all outstanding Letters of Credit issued pursuant to this Agreement
for the account of the Borrowers.

 

32

 

V.            Manner of Borrowing
and Payment.

 

(a)           Each borrowing of
Revolving Loans shall be advanced by the Lenders, severally and not jointly,
according to the applicable Commitment Percentage of each such Lender.

 

(b)           Each payment (including
each prepayment) by Borrowers on account of the principal of and interest on
the Revolving Loans, shall be applied to the Revolving Loans pro rata according
to the applicable Commitment Percentage of each Lender. Except as expressly
provided herein, all payments (including prepayments) to be made by Borrowers
on account of principal, interest and fees shall be made when due without set
off or counterclaim and shall be made to Agent on behalf of the Lenders to the
Payment Office, in each case on or prior to 1:00 P.M., New York time, in
Dollars and in immediately available funds.

 

(c)           (i)            Commencing with the first Business Day
following the Closing Date, each borrowing of Revolving Loans shall be advanced
by Agent and each payment by Borrowers on account of Revolving Loans shall be
applied to those Revolving Loans advanced by Agent. On or before 1:00 p.m., New
York time, on each Settlement Date commencing with the first Settlement Date
following the Closing Date, Agent and Lenders shall make certain payments as
follows: (I) if the aggregate amount of new Revolving Loans made by Agent
during the preceding Week (if any) exceeds the aggregate amount of repayments
applied to outstanding Revolving Loans during such preceding Week, then each
Lender shall provide Agent with funds in an amount equal to its applicable
Commitment Percentage of the difference between (w) such Revolving Loans and
(x) such repayments and (II) if the aggregate amount of repayments applied to
outstanding Revolving Loans during such Week exceeds the aggregate amount of
new Revolving Loans made during such Week, then Agent shall provide each Lender
with funds in an amount equal to its applicable Commitment Percentage of the
difference between (y) such repayments and (z) such Revolving Loans.

 

(ii)           Each Lender shall be
entitled to earn interest at the applicable interest rate(s) hereunder on
outstanding advances which it has funded.

 

(iii)          Promptly, but not later
than the end of each week, following each Settlement Date, Agent shall submit
to each Lender a certificate with respect to payments received and advances
made during the Week immediately preceding such Settlement Date. Such
certificate of Agent shall be conclusive in the absence of manifest error.

 

(d)           If any Lender (a “Benefited Lender”) shall at any time receive
any payment of all or part of its advances, or interest thereon, or receive any
Collateral in respect thereof (whether voluntarily or involuntarily or by
set-off) in a greater proportion than any such payment to and Collateral
received by any other Lender, if any, in respect of such other Lender’s
advances, or interest thereon, and such greater proportionate payment 

 

33

 

or receipt of
Collateral is not expressly permitted hereunder, such benefited Lender shall
purchase for cash from the other Lenders a participation in such portion of
each such other Lender’s advances, or shall provide such other Lender with the
benefits of any such Collateral, or the proceeds thereof, as shall be necessary
to cause such benefited Lender to share the excess payment or benefits of such
Collateral or proceeds ratably with each of the other Lenders; provided,
however, that if all or any portion of such excess payment or benefits is
thereafter recovered from such benefited Lender, such purchase shall be
rescinded, and the purchase price and benefits returned, to the extent of such
recovery, but without interest. Each Lender so purchasing a portion of another
Lender’s advances may exercise all rights of payment (including, without
limitation, rights of set-off) with respect to such portion as fully as if such
Lender were the direct holder of such portion.

 

(e)           Unless Agent shall have
been notified by telephone, confirmed in writing, by any Lender that such
Lender will not make the amount which would constitute its applicable
Commitment Percentage of the advances available to Agent, Agent may (but shall
not be obligated to) assume that such Lender shall make such amount available
to Agent on the next Settlement Date and, in reliance upon such assumption,
make available to Borrowers a corresponding amount. Agent will promptly notify
Borrower Agent of its receipt of any such notice from a Lender. If such amount
is made available to Agent on a date after such next Settlement Date, such
Lender shall pay to Agent on demand an amount equal to the product of (i) the
daily average Federal Funds Effective Rate (computed on the basis of a year of
360 days) during such period as quoted by Agent, times (ii) such amount, times
(iii) the number of days from and including such Settlement Date to the date on
which such amount becomes immediately available to Agent. A certificate of
Agent submitted to any Lender with respect to any amounts owing under this Section
5(V)(e) shall be conclusive, in the absence of manifest error. If such
amount is not in fact made available to Agent by such Lender within three (3)
Business Days after such Settlement Date, Agent shall be entitled to recover
such an amount, with interest thereon at the rate per annum then applicable to
such Revolving Loans hereunder, within five (5) days from demand of Borrower
Agent; provided, however, that Agent’s right to such recovery shall not
prejudice or otherwise adversely affect Borrowers’ rights (if any) against such
Lender.

 

(f)            Notwithstanding
anything to the contrary contained herein, in the event any Lender (x) has
refused (which refusal constitutes a breach by such Lender of its obligations
under this Agreement) to make available its portion of any Revolving Loan or
(y) notifies either Agent or Borrower Agent that it does not intend to make
available its portion of any Revolving Loan (if the actual refusal would
constitute a breach by such Lender of its obligations under this Agreement)
(each, a “Lender Default”), all
rights and obligations hereunder of such Lender (a “Defaulting Lender”) as to which a Lender Default is in effect
and of the other parties hereto shall be modified to the extent of the express
provisions of this Section while such Lender Default remains in effect.

 

(g)           Advances shall be made
pro rata from Lenders (the “Non-Defaulting
Lenders”) which are not Defaulting Lenders based on their respective
Commitment Percentages, and no Commitment Percentage of any Lender or any pro
rata 

 

34

 

share of any
advance required to be advanced by any Lender shall be increased as a result of
such Lender Default. Amounts received in respect of principal of any type of
Advances shall be applied to reduce the applicable advances of each Lender pro
rata based on the aggregate of the outstanding Revolving Loans of that type of
all Lenders at the time of such application; provided, that, such amount shall
not be applied to any advances of a Defaulting Lender at any time when, and to
the extent that, the aggregate amount of advances of any Non-Defaulting Lender
exceeds such Non-Defaulting Lender’s Commitment Percentage of all Revolving
Loans then outstanding.

 

(h)           A Defaulting Lender
shall not be entitled to give instructions to Agent or to approve, disapprove,
consent to or vote on any matters relating to this Agreement and the Other
Documents. All amendments, waivers and other modifications of this Agreement
and the Other Documents may be made without regard to a Defaulting Lender and,
for purposes of the definition of “Required Lenders”, a Defaulting Lender shall
be deemed not to be a Lender and not to have Advances outstanding.

 

(i)            Other than as
expressly set forth in this Section, the rights and obligations of a Defaulting
Lender (including the obligation to indemnify Agent) and the other parties
hereto shall remain unchanged. Nothing in this Section shall be deemed to
release any Defaulting Lender from its obligations under this Agreement and the
Other Documents, shall alter such obligations, shall operate as a waiver of any
default by such Defaulting Lender hereunder, or shall prejudice any rights
which Borrowers, Agent or any Lender may have against any Defaulting Lender as
a result of any default by such Defaulting Lender hereunder.

 

(j)            In the event a
Defaulting Lender retroactively cures to the satisfaction of Agent the breach
which caused a Lender to become a Defaulting Lender within five (5) Business
Days from the date of the breach, such Defaulting Lender shall no longer be a
Defaulting Lender and shall be treated as a Lender under this Agreement. If,
however, a breach is not cured as provided herein, or in the event that a
former Defaulting Lender (which such Lender previously cured such default as
provided herein), fails on another occasion to make available its pro rata
share of any Revolving Loan (whether or not cured), then, provided Borrowers
are not then in Default hereunder, Borrowers shall have the right to require
the Agent to exercise the repurchase rights contained in Section 5(V)(k),
below with respect to any Defaulting Lender.

 

(k)           The Agent shall, upon
request of Borrower Agent pursuant to subsection (j) above, and provided there
exists no Default hereunder, require any Defaulting Lender other than Citizens
Bank New Hampshire to assign its interest in the Revolving Loan to Citizens
Bank New Hampshire or to any other Lender or to any other Person designated by
the Agent (“Designated Lender”),
for a price equal to the then outstanding principal amount plus accrued interest
and unpaid interest and fees due such Lender. Upon payment to such Lender in
the amount of the then outstanding principal amount of Lender’s Commitment
Percentage of the outstanding Revolving Loans, plus accrued and unpaid interest
due such Lender, such Lender will assign its interest to Citizens Bank New
Hampshire or the Designated Lender, as applicable, pursuant to a

 

35

 

Commitment
Transfer Supplement executed by such Lender, Citizens Bank New Hampshire or the
Designated Lender, as appropriate and Agent substantially in the form of Exhibit 5 attached hereto.

 

(l)            No Defaulting Lender
shall be entitled to receive any fees with respect to their Commitment Amount,
Revolving Loans or participation in Letters of Credit while such Lender is a
Defaulting Lender hereunder, provided however, that the Non-Defaulting Lenders
shall be entitled to such fees and Borrowers shall pay to the Agent, for the
benefit of the Non-Defaulting Lenders, such amounts as shall be due and owing
hereunder.

 

VI.           Miscellaneous LIBOR
Rate Loan Terms.

 

(a)           LIBOR Rate Lending
Unlawful. If after the Closing Date, the Agent (or any Lender) shall
determine (which determination shall, upon notice thereof to the Borrower Agent
be conclusive and binding on the Borrowers) that the introduction of or any
change in or in the interpretation of any law, rule or regulation, makes it
unlawful, or any central bank or other governmental authority asserts that it
is unlawful, for the Agent (or any Lender) to make, continue or maintain any
LIBOR Rate Loan as, or to convert any Revolving Loan into, a LIBOR Rate Loan of
a certain duration, all existing LIBOR Rate Loans of such type shall
automatically convert into LIBOR-Reference Banks Loans at the end of the then
current Interest Periods with respect thereto or sooner, if required by such
law or assertion. For purposes of this agreement, in the event of such a
conversion, all LIBOR-Reference Banks Rate Loans shall be treated (except as to
interest rate) as equivalent to a LIBOR Rate Loan of similar amount and
Interest Period. For greater certainty, all provisions of this agreement
relating to LIBOR Rate Loans shall apply equally to LIBOR-Reference Banks
Loans, including, but not limited to the manner in which LIBOR-Reference Banks
Rate Loans are requested, continued, converted, the manner in which interest
accrues, is payable, principal payments are made, whether voluntary or
involuntary, as well as any penalties, increased costs or taxes associated with
any of the foregoing.

 

(b)           Substitute Rate.
If the Agent (or any Lender) shall have determined after the Closing Date that:

 

(i)            US
dollar deposits in the relevant amount and for the relevant Interest Period are
not available to the Agent (or any Lender) in the London interbank market;

 

(ii)           by
reason of circumstances affecting the Agent (or any Lender) in the London
interbank market, adequate means do not exist for ascertaining the LIBOR Rate
applicable hereunder to LIBOR Rate Loans of any duration, or

 

(iii)          the
LIBOR Rate no longer adequately reflects the Agent’s (or any Lender’s) cost of
funding loans,

 

36

 

then, upon
notice from the Agent (or any Lender) to the Borrower Agent, the obligations of
the Agent (or any Lender) under this section to make or continue any LIBOR Rate
Loans, or to convert any Revolving Loans, 
as applicable, into, LIBOR Rate Loans of such duration shall forthwith
be suspended until the Agent (or any Lender) shall notify the Borrower Agent that
the circumstances causing such suspension no longer exist. Agent shall use
reasonable efforts to provide Borrower Agent with written notice of any such
suspension of LIBOR Rate Loans.

 

(c)           Indemnities. In
addition to the LIBOR Rate Loan Prepayment Fee, the Borrowers agree to
reimburse the Agent (or any Lender) (without duplication to such amounts
already included in the calculation of LIBOR Rate Loan Prepayment Fee) within
ten (10) Business Days for any increase in the cost to the Agent (or any
Lender), or reduction in the amount of any sum receivable by the Agent (or any
Lender), in respect, or as a result of:

 

(i)            any
conversion or repayment or prepayment of the principal amount of any LIBOR Rate
Loans on a date other than the scheduled last day of the Interest Period
applicable thereto;

 

(ii)           any
Revolving Loans not being made as LIBOR Rate Loans in accordance with the
borrowing request thereof;

 

(iii)          any
LIBOR Rate Loans not being continued as, or converted into, LIBOR Rate Loans in
accordance with the continuation/conversion notice thereof, or

 

(iv)          any
costs associated with marking to market any Hedging Obligations that (in the
reasonable determination of the Agent (or any Lender or any Affiliates of any
Lender party to a Hedging Contract)) are required to be terminated as a result
of any conversion, repayment or prepayment of the principal amount of any LIBOR
Rate Loan on a date other than the scheduled last day of the Interest Period
applicable thereto.

 

The Agent (or any Lender) shall promptly notify the Borrower Agent in
writing of the occurrence of any such event, such notice to state, in
reasonable detail, the reasons therefor and the additional amount required
fully to compensate the Agent (or any Lender) for such increased cost or
reduced amount. Such additional amounts shall be payable by the Borrowers to
the Agent (or any Lender) within ten (10) Business Days of its receipt of such
notice, and such notice shall, in the absence of manifest error, be conclusive
and binding on the Borrowers. The Borrowers understand, agree and acknowledge
the following: (a) the Agent (or any Lender) does not have any obligation to
purchase, sell and/or match funds in connection with the use of LIBOR Rate as a
basis for calculating the rate of interest on a LIBOR Rate Loan, (b) the LIBOR
Rate may be used merely as a reference in determining such rate, and (c) the
Borrowers having accepted the LIBOR Rate as a reasonable and fair basis for
calculating such rate, the LIBOR Rate Loan Prepayment Fee, and other funding losses
incurred by the Agent (or

 

37

 

any Lender)
(without any duplication of the LIBOR Rate Loan Prepayment Fee). As provided
herein, Borrowers agree to pay the LIBOR Rate Loan Prepayment Fee as well as
other funding losses, if any (and without duplication), whether or not the
Agent (or any Lender) elects to purchase, sell and/or match funds.

 

(d)           Increased Costs.
If on or after the date hereof the adoption of any applicable law, rule or
regulation, or any change therein, or any change in the interpretation or
administration thereof by any governmental authority, central bank or
comparable agency charged with the interpretation or administration thereof, or
compliance by the Agent (or any Lender) with any request or directive (whether
or not having the force of law) of any such authority, central bank or
comparable agency after the Closing Date:

 

(i)            shall
subject the Agent (or any Lender) to any tax, duty or other charge with respect
to its LIBOR Rate Loans or its obligation to make LIBOR Rate Loans, or shall
change the basis of taxation of payments to the Agent of the principal of or
interest on its LIBOR Rate Loans or any other amounts due under this Agreement
in respect of its LIBOR Rate Loans or its obligation to make LIBOR Rate Loans
(except for the introduction of, or change in the rate of, tax on the overall
net income of the Agent (or any Lenders) or franchise taxes, imposed by the
jurisdiction (or any political subdivision or taxing authority thereof) under
the laws of which the Agent is organized or in which the Agent’s principal
executive office is located); or

 

(ii)           shall
impose, modify or deem applicable any reserve, special deposit or similar
requirement (including, without limitation, any such requirement imposed by the
Board of Governors of the Federal Reserve System of the United States) against
assets of, deposits with or for the account of, or credit extended by, the
Agent or shall impose on the Agent or on the London interbank market any other
condition affecting its LIBOR Rate Loans or its obligation to make LIBOR Rate
Loans;

 

and the result
of any of the foregoing is to increase the cost to the Agent (or any Lender) of
making or maintaining any LIBOR Rate Loan, or to reduce the amount of any sum
received or receivable by the Agent (or any Lender) under this Agreement with
respect thereto, by an amount deemed by the Agent to be material, then, within
fifteen (15) days after written demand by the Agent (with supporting
documentation, as applicable), the Borrowers shall pay to the Agent such
additional amount or amounts as will compensate the Agent for such increased
cost or reduction.

 

(e)           [Reserved.]

 

(f)            Taxes. All
payments by the Borrowers of principal of, and interest on, the LIBOR Rate
Loans and all other amounts payable hereunder shall be made free and clear

 

38

 

of and without
deduction for any present or future income, excise, stamp or franchise taxes
and other taxes, fees, duties, withholdings or other charges of any nature
whatsoever imposed by any taxing authority, but excluding franchise taxes and
taxes imposed on or measured by the Agent’s (or any Lender’s) net income or
receipts (such non-excluded items being called “Taxes”). In the event that any withholding or deduction from
any payment to be made by the Borrowers hereunder is required in respect of any
Taxes pursuant to any applicable law, rule or regulation, then the Borrowers
will

 

(i)            pay
directly to the relevant authority the full amount required to be so withheld
or deducted;

 

(ii)           promptly
forward to the Agent an official receipt or other documentation satisfactory to
the Agent evidencing such payment to such authority; and

 

(iii)          pay
to the Agent such additional amount or amounts as is necessary to ensure that
the net amount actually received by the Agent will equal the full amount the
Agent would have received had no such withholding or deduction been required.

 

Moreover, if any Taxes are directly asserted against the Agent (or any
Lender) with respect to any payment received by the Agent hereunder, the Agent
may pay such Taxes and the Borrowers will promptly pay such additional amount
(including any penalties, interest or expenses) as is necessary in order that
the net amount received by the Agent after the payment of such Taxes (including
any Taxes on such additional amount) shall equal the amount the Agent would
have received had not such Taxes been asserted.

 

If any Borrower fails to pay any Taxes when due to the appropriate taxing
authority or fails to remit to the Agent (and all Lenders) the required
receipts or other required documentary evidence, the Borrowers shall indemnify
the Agent (and all Lenders) for any incremental Taxes, interest or penalties
that may become payable by the Agent as a result of any such failure.

 

(g)           Notwithstanding
anything to the contrary contained herein, Agent and Borrowers agree that after
the occurrence of an Event of Default which is continuing, Borrowers shall not
request and Agent will not make LIBOR Rate Loans.

 

(h)           In addition to all
other sums payable hereunder, Borrowers shall pay Agent for the ratable benefit
of the Lenders, a fee (the “Unused Line Fee”)
in an amount equal to one-fifth of one percent (.20%) per annum of the
difference between: (i) the Credit Limit and (ii) the average amount of the
principal balance of Revolving Loans outstanding for each quarterly period this
Agreement is in effect, plus the average amount of Outstanding Letters of
Credit. Such Unused Line Fee shall be payable quarterly in arrears and shall be
treated as a Revolving Loan to Borrowers for working capital purposes. The
Unused Line Fee shall be divided pro rata amount the Lenders in accordance with
their respective Commitment Percentages.

 

39

 

(i)            In addition to all
other sums payable hereunder, Borrowers shall pay to Agent (i) an
Administrative Agent fee equal to Ten Thousand and 00/100 Dollars ($10,000.00)
per annum, payable quarterly in advance, provided that there is more than one
Lender a party to this Agreement; in the event that more than two Lenders are
party to this Agreement, an additional fee of Five Thousand and 00/100 Dollars
($5,000.00) per annum per additional Lender shall be due and payable quarterly
by the Borrowers;  (ii) an
origination fee equal to one fifth of one percent (.20%) of the maximum Credit
Limit, or One Hundred Twenty Thousand and 00/100 Dollars ($120,000.00), of
which the Agent has received $30,000.00, which such amount shall not be shared
with any other Lenders, and the balance of Ninety Thousand Dollars ($90,000.00)
shall be payable in full on the Closing Date. Said Ninety Thousand Dollar
($90,000.00) shall be shared for the ratable benefit of the Lenders, based upon
each such Lender’s Commitment Percentage and the time remaining in the initial
Term at the time such Lender becomes a party to this Agreement. Each Lender
acknowledges and agrees that the aforementioned Thirty Thousand and 00/100
Dollars ($30,000.00) received by Agent with respect to the origination fee, “float
day” interest and all administrative fees and account fees payable by Borrowers
to Agent hereunder shall be payable by Agent to Citizens and shall not be
shared with any other Lenders, except in the event Agent is not the Issuing
Lender, in which case the Issuing Lender will be entitled to retain
administration fees related to such issuance. Any administrative and account
fees incurred in connection with the issuance of any Letters of Credit
hereunder and payable by Borrowers to Agent hereunder shall be payable by Agent
to the Issuing Lender and shall not be shared with any other Lenders. The
Unused Line Fee and all LC Commissions shall be payable by Borrowers to Agent
hereunder and shall be thereafter shared for the ratable benefit of the
Lenders.

 

6.             BORROWER
AGENT.

 

(a)           In order to facilitate
the borrowing procedures hereunder, Borrowers hereby recognize that it is
advantageous and convenient for them to, and as such, is hereby authorized to,
appoint one of them, from time to time to act as agent for the Borrowers to
effect borrowings and other extensions of credit under this Agreement and to
designate a Borrower to which proceeds of the borrowings shall be distributed
(individually and collectively, the “Borrower Agent”). Each of GT Solar,
GT Holdings and GT Equipment hereby appoint GT International as such
corporation’s Borrower Agent to request, receive and distribute loans hereunder
and to communicate with Agent with respect thereto, and GT International does
hereby accept such appointment.

 

(b)           Upon appointment of a
Borrower Agent other than GT International, the Borrowers shall provide Agent
with notice thereof, along with an incumbency certificate and any other
required corporate or company authority documents as may be requested by the
Agent, including resolutions, as appropriate, properly evidencing the authority
of the Borrower Agent. Upon delivery to Agent of all requested authority
documents, each Borrower shall be deemed to have irrevocably appointed such Borrower
Agent as its agent to effect borrowings, obtain other extensions of credit and
to execute instruments and documents and take other actions in the name, or on
behalf of, but not as a lender to, such Borrower, as provided or contemplated
in this

 

40

 

 

Agreement. Each Borrower
represents and covenants that all requests for Loans and Letters of Credit
under this Agreement shall be made by either the Borrowers or Borrower Agent as
agent for the Borrowers, and that the authority of the Borrower Agent so to
request Loans and Letters of Credit on behalf of, and to bind, the Borrowers,
shall continue unless and until (i) the Agent actually receives written notice
of the termination and/or replacement of such authority signed by an
Responsible Officer of each of the Borrowers, (ii) this Agreement has been
terminated, or (iii) all Obligations of such Borrower have been paid or
otherwise satisfied. Notwithstanding any provision to the contrary elsewhere in
this Agreement or such other Loan Documents, the Borrower Agent shall not have
any duties or responsibilities, except those expressly set forth herein and
therein, or any fiduciary relationship with any Borrower and no implied
covenants, functions, responsibilities duties, obligations or liabilities shall
be read into this Agreement or the other Loan Documents or otherwise exist
against the Borrower Agent. Furthermore, in performing his duties under this
appointment, the Borrower Agent shall be acting solely as a conduit for money
transfers between the Lenders and the Borrowers, and the Borrower Agent shall
not make, nor shall he be construed as making, any loans or advances of money
under this Agreement to any of the Borrowers.

 

(c)           Each Borrower further
agrees and acknowledges that any Loans which may be made by the Lenders
pursuant to the terms of this Agreement may be made directly to the Borrower
Agent notwithstanding any notice or knowledge by the Lenders that such Loan is
intended for the use of another Borrower, and the Lenders shall have no
responsibility with respect to whether or when the Borrower Agent distributes
or delivers the proceeds of any Loans to any other Borrower, and payment or
delivery by the Agent of the proceeds of such Loans to the Borrower Agent shall
be deemed to be a payment or delivery to each Borrower. Without limiting the
foregoing, each Borrower acknowledges that it shall be directly indebted to the
Lenders for each Loan distributed to it by the Borrower Agent as if that Loan
had been made directly by the Lenders to the Borrowers which received such
proceeds, in addition to which the other Borrowers shall be jointly and
severally obligated to the Lenders in that amount.

 

(d)  The Agent shall have no responsibility to
inquire as to the distribution of Loans and Letters of Credit made by the Agent
or Issuing Lender through the Borrower Agent as described herein.

 

(e)  [Reserved.]

 

(f)  The Facility established in this Agreement
constitutes one combined aggregate Line of Credit for all of the Borrowers.

 

7.             RESERVED.

 

8.             AGENT’S
REPORTS. After the end of each month, Agent will render to Borrower
Agent a statement of Borrowers’ loan account with Agent hereunder, showing all
applicable credits and debits. Each statement shall be considered correct and
to have been accepted by Borrowers and shall be conclusively binding upon
Borrowers in respect of all charges, debits and credits of whatsoever nature
contained therein under or pursuant to this Agreement, and the closing balance
shown therein, unless Borrower Agent notifies Agent in writing of any

 

41

 

discrepancy within forty-five
(45) days from the mailing by Agent to Borrower Agent of any such monthly
statement.

 

9.             CONDITIONS
OF LENDING.

 

(a)          The obligation of the
Lenders to make the initial Revolving Loan hereunder or issue or cause to be
issued any Letter of Credit hereunder on the Closing Date to the Borrowers
shall be subject to the condition precedent that Agent for itself and the
benefit of the Lenders shall have received all of the following, each in form
and substance reasonably satisfactory to Agent:

 

(i)            This Agreement, properly executed on behalf
of each Borrower.

 

(ii)           The Note drawn to the order of each Lender
in the face amount of their respective Commitment Percentage of the Credit
Limit.

 

(iii)          A true and correct copy of any and all leases
pursuant to which any Borrower is leasing any real property.

 

(iv)          Searches dated within forty-five (45) days
prior to the Closing Date, of appropriate filing offices showing that (A) no
state or federal tax Liens have been filed and remain in effect against any
Borrower, and (B) no financing statements have been filed and remain in effect
against any Borrower, except those financing statements relating to Liens set
forth on Schedule “B”, the Liens of the secured lender to be
paid with the proceeds of the initial loan and those financing statements filed
by the Agent or by Citizens Bank New Hampshire previously, and (C) virtually
simultaneously with the SVB Payoff, the Agent shall duly file all financing
statements necessary to perfect the security interests granted hereunder, to
the extent the security interests are capable of being perfected by filing.

 

(v)           A certificate of the Secretary or an
Assistant Secretary of each  Borrower,
certifying as to (A) the resolutions of the directors and, if required, the
shareholders of such Borrower, authorizing the execution, delivery and
performance of this Agreement and related documents, (B) the Articles of
Organization and by-laws or operating agreement, as applicable, of each
Borrower, and (C) the signatures of the officers or agents of each Borrower
authorized to execute and deliver this Agreement and other instruments,
agreements and certificates, including loan requests, on behalf of each
Borrower.

 

(vi)          A certificate dated within forty-five (45)
days prior to the Closing Date, issued by the Secretary of State of the state
of each Borrower’s incorporation or formation, certifying that each such
Borrower is validly existing and in good standing.

 

(vii)         Evidence that each Borrower is duly licensed
or qualified to transact business in all jurisdictions where the character of
the property owned or leased or the nature of the business transacted by it
makes such licensing or qualification necessary.

 

42

 

(viii)        An opinion of counsel to the Borrowers,
addressed to Agent for the benefit of all Lenders.

 

(ix)           Certificates of the insurance required
hereunder, with all property and liability insurance containing an additional
insured endorsement in favor of the Agent and all property casualty insurance
containing a lender’s loss payable endorsement in favor of Agent.

 

(x)            [Reserved.]

 

(xi)           Payment of the fees due and payable through
the date of the initial Revolving Loan and invoiced out-of-pocket expenses
incurred by Agent through such date required to be paid by Borrowers pursuant
to this Agreement.

 

(xii)          [Reserved.]

 

(xiii)         Such other documents, instruments and
agreements as Agent in its sole discretion may require.

 

(b)          Notwithstanding anything
to the contrary contained in this Agreement, Borrowers acknowledge that no
Revolving Loans shall be made or Letter of Credit issued until such time as (i)
all SVB Liens have been released and Agent has filed all UCC financing
statements required to be filed to perfect its security interests in the
Collateral, and Agent has received confirmation thereof, satisfactory to the
Agent in its sole discretion, and (ii) the Borrowers have delivered a
compliance certificate as of the month ended March 30, 2007.

 

(c)          The obligation of the
Lenders to make each Revolving Loan shall be subject to satisfaction or waiver
of the further conditions precedent on such date:

 

(i)            the representations and warranties
contained in Sections 3 and 4 hereof are correct in all material
respects on and as of the date of such Revolving Loan or the issuance of a
Letter of Credit, as the case may be, as though made on and as of such date,
except to the extent that such representations and warranties relate solely to
an earlier date and in such case, are correct in all material respects as of
such earlier date; and

 

(ii)           no event has occurred and is continuing, or
would result from such Revolving Loan or issuance of such Letter of Credit, as
the case may be, which constitutes an Event of Default or which, with notice or
the passage of any cure period or both, would constitute an Event of Default.

 

10.           CAPITAL
ADEQUACY.

 

If, after the
Closing Date, any change in, or the introduction, adoption, effectiveness, interpretation,
reinterpretation or phase-in of, any law or regulation, directive, guideline,
decision or request (whether or not having the force of law) of any court,
central bank, 

 

43

 

regulator or other governmental
authority affects or would affect the amount of capital required or expected to
be maintained by the Agent or any Lender, or person controlling the Agent or
any Lender, and the Agent or such Lender determines (in its sole and absolute
discretion) that the rate of return on its or such controlling person’s capital
as a consequence of its commitments or the loans made by the Agent or any
Lender is reduced to a level below that which the Agent or any Lender or such
controlling person could have achieved but for the occurrence of any such
circumstance, then, in any such case upon notice from time to time by the Agent
to the Borrower Agent, the Borrowers shall within three (3) Business Days of
written demand therefor (along with supporting documentation, if any, as
applicable), pay directly to the Agent additional amounts sufficient to
compensate the Agent (or any Lender) or such controlling person for such
reduction in rate of return. A statement of the Agent or any such Lender as to
any such additional amount or amounts (including calculations thereof in
reasonable detail) shall, in the absence of manifest error, be conclusive and
binding on the Borrowers. In determining such amount, the Agent or any such
Lender may use any method of averaging and attribution that it (in its sole and
absolute discretion) shall deem applicable.

 

11.  COLLECTIONS; SET OFF; DEPOSIT ACCOUNTS; NOTICE OF ASSIGNMENT; EXPENSES;
POWER OF ATTORNEY.

 

(a)           All proceeds received
on account of the Obligations shall be applied by the Agent in the following
order:

 

First, to
payment of that portion of the Obligations (excluding Hedging Obligations)
constituting fees, indemnities, expenses and other amounts including without
limitation, fees, charges and disbursements of counsel to the Agent payable
under this Agreement, including out-of-pocket expenses of Agent incurred under
any Other Documents, or in connection with the realization of any Collateral,
including without limitation,  reasonable
expenses of retaking, holding, preparing for sale, selling and the like
incurred by Agent, as Mortgagee under the Mortgage, including reasonable
attorneys’ fees and out-of-pocket legal expenses, the expense of insurance, the
expense of ordinary or extraordinary repairs or alterations deemed necessary by
Agent, as Mortgage, the expense of taxes or other charges on the Mortgaged
Property (as defined in the Mortgage) which Agent, as Mortgagee may deem it
wise to pay, together with reserves for the foregoing to the extent deemed
necessary by Agent, as Mortgagee) shall be paid to the Agent, as Mortgagee for
application against all sums due and owing to Mortgagee or any Lender payable
to the Agent.

 

Second, to
payment of that portion of the Obligations (excluding Hedging Obligations)
constituting indemnities, expenses, and other amounts (other than principal,
interest and fees) payable to the Lenders (including fees, charges and
disbursements of counsel to the respective Lenders and amounts payable
hereunder), ratably among them in proportion to their respective Commitment
Percentage.

 

Third, to
payment of that portion of the Obligations (excluding Hedging Obligations)
constituting accrued and unpaid interest on the Revolving Loan and

 

44

 

related fees, ratably among the Lenders
in proportion to the respective Commitment Percentage;

 

Fourth, to
payment of that portion of the Obligations (excluding Hedging Obligations)
constituting unpaid principal of the Revolving Loans (to be applied in the
inverse order of maturity), ratably among the Lenders in proportion to the
respective Commitment Percentage;

 

Fifth, to
the Agent for the account of Issuing Lender, to cash collateralize one hundred
three (103%) percent of that portion of Letter of Credit Obligations comprised
of the aggregate undrawn amount on all Letters of Credit, as applicable;

 

Sixth, to
payment of all Hedging Obligations, ratably among the Lenders in proportion to
the respective commitments with respect to such Hedging Obligations;

 

Seventh,
the balance, if any, after all of the Obligations have been paid in full, to
the Borrowers or as otherwise required by applicable law.

 

Agent will
credit (conditional upon final collection) all such payments against the
principal or interest of any Revolving Loans secured hereby as set forth above;
provided, however, for the purpose of computing interest, any items requiring
clearance or payment shall not be considered to have been credited against any
Revolving Loans secured hereby until two (2) Business Days after receipt by
Agent of any such items and any surplus remaining after payment of outstanding
Obligations shall be remitted to Borrowers, provided however, that any wire
transfers received by the Agent prior to 1:00pm on any Business Day will be
credited on that day, and any such wire transfers received by the Agent after
1:00pm on any Business Day shall be credited on the next Business Day. As
provided in Section 11(c), below, Agent will at all times have the right
to require Borrowers to maintain its primary deposit accounts at Agent or, in
the alternative, at the Agent’s option, at another financial institution
subject to a Control Agreement such that, among other things, during the
continuance of an Event of Default, Borrowers’ account shall be blocked and
such institution shall have waived its rights as against such account. Agent
shall also, during the continuance of an Event of Default, have the right to
require Borrowers to enter into a lockbox arrangement with Agent for the
collection of such remittances and payments and the Borrowers shall use all
diligent efforts to effectuate such arrangements as soon as reasonably
practicable. Notwithstanding anything contained to the contrary herein, said
proceeds shall not be applied to the principal of any LIBOR Rate Loan(s), until
all Prime Rate Loans have been paid in full and the application of proceeds
shall not be considered a prepayment given rise to any related fees (other than
any applicable LIBOR Rate Loan Prepayment Fee, if any).

 

(b)           To the extent permitted
by applicable law, each Borrower hereby grants to Agent and each Lender a Lien,
security interest and right of setoff as security for all Obligations to Agent
and each Lender, whether now existing or hereafter  arising, upon and against all deposits, credits,
collateral and property, now or hereafter in the possession, custody,
safekeeping or control of Agent or any entity in the control of the Agent, or
any Lender, (other

 

45

 

than Excluded
Deposits, as defined in Section 11(c), below). At any time during the
continuance of an Event of Default, without demand or notice, Agent may set off
the same or any part thereof and apply the same to any Obligation of the
Borrowers even though unmatured and regardless of the adequacy of any other
Collateral securing the Obligations. Additionally, at any time there is a draw
on any Letter of Credit, then, without demand or notice, Agent may treat such
amount as a Revolving Loan under this Agreement for working capital purposes. ANY
AND ALL RIGHTS TO REQUIRE AGENT TO EXERCISE ITS RIGHTS OR REMEDIES WITH RESPECT
TO ANY OTHER COLLATERAL WHICH SECURES THE OBLIGATIONS, PRIOR TO EXERCISING ITS
RIGHT OF SETOFF WITH RESPECT TO SUCH DEPOSITS, CREDITS OR OTHER PROPERTY OF
BORROWERS, ARE HEREBY KNOWINGLY, VOLUNTARILY AND IRREVOCABLY WAIVED TO THE
EXTENT PERMITTED BY APPLICABLE LAW.

 

(c)           The Borrowers shall at
all times maintain the Agent, as their principal depository bank. For each
deposit account that each Borrower at any time opens or maintains that is not
with Agent (as may be permitted hereunder), such Borrower shall, at Agent’s
request and option, arrange for execution of a control or other similar type
agreement by and among Agent, the applicable Borrowers and applicable depository
bank in form and substance acceptable to Agent in its sole discretion, which
such agreement among other things, either
(i) causes the depository bank to agree to comply at any time with instructions
from Agent to such depository bank directing the disposition of funds from time
to time credited to such deposit account, without further consent of any such
Borrower, and cause such depository bank to acknowledge that any Lien held by
such depository bank on such accounts is subordinate to the Liens of the Lenders,
or (ii) arranges for the Agent to
become the customer of the depository bank with respect to the deposit account,
with such Borrowers being permitted, only with the consent of Agent, to
exercise rights to withdraw funds from such deposit account (the “Control Agreement(s)”). Agent agrees with
Borrowers that Agent shall not give any such instructions or withhold any
withdrawal rights from Borrowers, unless an Event of Default has occurred and
is continuing, or  after giving effect to
any withdrawal not otherwise permitted by this Agreement an Event of Default
would occur. The Agent agrees to rescind any such instructions within ten (10)
Business Days of any such Event of Default being curerd or waived. In no event
shall Borrowers fail to maintain deposit accounts with Agent in a minimum
amount of the lesser of (i) the total amount of Letters of Credit issued by
Agent (or any Lender); or (ii) 100% of Borrowers’ deposit accounts (the “Mininum Deposit”). Notwithstanding anything
to the contrary contained herein, Borrowers shall not maintain any deposit
accounts with any bank, institution or other party other than a Lender, except (x) for any overseas deposit
accounts in any country where there is no local branch network of any Lender
and in such case Borrowers shall provide Agent with such account information
and statements and otherwise comply with Section 11(c)(i) or (ii),
above, and (y)  that Borrowers shall be allowed to
maintain deposit accounts with any other financial institution similar to Agent
or Lenders only in the event that Agent (and/or any applicable Lender) is
unable to provide competitive market returns on such deposit investments, and
in such events, only to the extent that such deposits allowed under Section
11(c)(x) and (y), above, exceed the Minimum Deposit requirements set
forth in this Section 11(c), above, and further, in such case Borrowers
shall provide Agent with such account information and statements and otherwise
comply with Section 11(c)(i) or (ii), above. Additionally, the
Agent shall at all times have the right to control any such deposit accounts
through Control

 

46

 

Agreements,
blocked accounts or such other similar arrangements with the Borrowers. Notwithstanding
anything to the contrary contained herein, the provisions of this paragraph
shall not apply to (xx) any deposit account for which Borrowers, the depository
bank and Agent have entered into a cash collateral agreement specially
negotiated among Borrowers, the depository bank and Agent for the specific
purpose set forth therein, or (yy) deposit accounts specifically and
exclusively used for payroll, payroll taxes and other employee wage and benefit
payments to or for the benefit of any Borrower’s salaried employees and petty
cash (collectively, the “Excluded Deposit
Accounts”).

 

(d)           The Agent may at any
time, during the continuance of an Event of Default, and with two (2) Business
Days prior notice to the Borrower Agent, notify account debtors that Collateral
has been collaterally assigned to Agent and that payments shall be made
directly to or as directed by Agent. Upon request of Agent at any time during
the continuance of an Event of Default, the Borrowers will so notify such
account debtors and will indicate on all billings to such account debtors that
their Accounts must be paid directly to or as directed by the Agent.

 

(e)           The Borrowers shall pay
to Agent within fifteen (15) days of written demand therefor any and all
reasonable counsel fees and other reasonable actual out-of-pocket expenses
incurred by Agent (or any of the Lenders with respect to enforcement) in
connection with the preparation, interpretation, enforcement, administration or
amendment of this Agreement, the Notes and the Other Documents or of any documents
relating thereto, and any and all expenses, including, but not limited to, a
collection charge on all Accounts collected, all attorneys’ fees for the Agent
and out-of-pocket expenses, and all other expenses of like or unlike nature
which may be expended by Agent or any Lender to obtain or enforce payment of
any Account either as against the account debtor, Borrowers, or any Guarantor
or surety of Borrowers or in the prosecution or defense of any action or
concerning any matter growing out of or connected with the subject matter of
this Agreement, including protection of the security interests or the priority
thereof, the Obligations or the Collateral or any rights or interests therein
or thereto of Agent or the Lenders, including, without limiting the generality
of the foregoing, any counsel fees or expenses incurred in any bankruptcy or
insolvency proceedings and all costs and expenses incurred or paid by Agent or
any Lender in connection with the administration, supervision, protection or
realization on any security held by Agent for the debt secured hereby, whether
such security was granted by any Borrower or by any other person primarily or
secondarily liable (with or without recourse) with respect to such debt, and
all costs and expenses incurred by Agent (or any Lender) in connection with the
defense, settlement or satisfaction of any action, claim or demand asserted
against Agent in connection with the debt secured hereby, all of which amounts
shall be considered advances to protect Agent’s security, and shall be secured
hereby. Additionally, at its option, and without limiting any other rights or
remedies, with five (5) days prior notice to the Borrower Agent the Agent may
at any time pay or discharge any taxes, Liens at any time levied against or
placed on any of the Collateral, and may procure and pay any premiums on any
insurance required to be carried by the Borrowers, and provide for the
maintenance and preservation of any of the Collateral, and otherwise take any
action reasonably deemed necessary to the Agent to protect its security, and
all amounts expended by the Agent in connection with any of the foregoing
matters, including reasonable attorneys’ fees for the Agent, shall be
considered Obligations and shall be secured hereby. Agent shall use

 

47

 

reasonable
efforts to provide Borrower Agent with documentation reasonably supporting such
costs and expenses herein, with such written notice of demand therefore, but in
any event shall provide any such supporting documentation, as applicable, as
soon as reasonably practicable after such demand.

 

(f)            The Borrowers do
hereby make, constitute and appoint any officer or agent of Agent as Borrowers’
true and lawful attorney-in-fact, with power to endorse the name of
the Borrowers or any of Borrower’s officers or agents upon any notes, checks,
drafts, money orders, or other instruments of payment (including payments
payable under any policy of insurance on the Collateral) or Collateral that may
come into possession of Agent in full or part payment of any amounts owing to
Agent; to sign and endorse the name of Borrowers or any of Borrowers’ officers
or agents upon any invoice, freight or express bill, bill of lading, storage or
warehouse receipts, drafts against debtors, assignments, verifications and
notices in connection with Accounts, and any instrument or documents relating
thereto or to Borrowers’ rights therein; collect, compromise, endorse, sell or
otherwise deal with the Collateral or proceeds thereof in its own name or in
the name of each Borrower; to give written notice to such office and officials
of the United States Post Office to effect such change or changes of address so
that all mail addressed to Borrowers may be delivered directly to Agent; granting
upon Borrowers’ said attorney full power to do any and all things necessary to
be done in and about the premises as fully and effectually as Borrowers might
or could do, and hereby ratifying all that said attorney shall lawfully do or
cause to be done by virtue hereof, provided however, that Agent shall not take
any such actions unless an Event of Default shall have occurred and be
continuing. Neither Agent nor the attorney shall be liable for any acts or
omissions nor for any error of judgment or mistake, except for their gross
negligence, willful misconduct, bad faith, or material breach of this Agreement
or ther Other Documents. This power of attorney shall be irrevocable for the
term of this Agreement and all transactions hereunder and thereafter as long as
Borrowers may be indebted to Agent.

 

12.           FINANCING
STATEMENTS. Borrowers hereby irrevocably authorize Agent at any time
after confirmation from Borrowers’ current lender, Silicon Valley Bank (“SVB”) of receipt of payment of all amounts
set forth in that certain payoff letter issued by SVB to Borrowers, a copy of
which was provided to Agent (the “SVB Payoff”),
and from time to time thereafter to file in any Uniform Commercial Code
jurisdiction any initial financing statements and amendments thereto that (a)
indicate the Collateral (i) as all assets of Borrowers or words of similar
effect, regardless of whether any particular asset comprised in the Collateral
falls within the scope of Article 9 of the Uniform Commercial Code of such
jurisdiction, or (ii) as being of an equal or lesser scope or with greater
detail, and (b) contain any other information required by the Uniform
Commercial Code for the sufficiency or filing office acceptance of any
financing statement or amendment, including (i) whether each Borrower is an
organization, the type of organization and any organization identification
number issued to each Borrower, and (ii) in the case of a financing statement
filed as a fixture filing or indicating Collateral as as-extracted Collateral
or timber to be cut, a sufficient description of real property to which the
Collateral relates and (y) any other filings in connection with perfecting its
security interest in the Collateral, including without limitation, continuation
statements pursuant to the UCC or other notices appropriate under applicable
Federal or State laws in form reasonably satisfactory to the

 

48

 

Agent. The Borrowers agree to
furnish any such information to Agent promptly upon reasonable request.

 

13.           BORROWERS’
REPORTS.

 

(a)          The Agent and Lenders
acknowledge that under the current Borrowers’ structure, consolidated financial
statements for the Borrowers does not and will not include reporting for GT
Holdings, and such reporting shall not currently be required.

 

(b)          Borrowers shall deliver
to Agent all documents, as frequently as indicated below, or at such other
times as Agent may reasonably request, and all other documents and information
requested by  Agent during the continuance
of an Event of Default:

 

	
   

  	
   

  	
  DOCUMENT

  	
   

  	
  FREQUENCY DUE

  	
   

  
	
  (i) 

  	
   

  	
  Projections
  of Borrowers’ balance sheet, statement of profit and loss and cash flow for
  the next succeeding fiscal year broken down on a month to month basis

  	
   

  	
  Annually, as
  soon as practicable after the end of each fiscal year, but in any event not
  later than forty-five (45) days after the beginning of each fiscal year of
  Borrowers

  	
   

  
	
  (ii)

  	
   

  	
  Notice of
  Default or Event of Default hereunder.

  	
   

  	
  Within three
  (3) Business Days from a Responsible Officer obtaining knowledge thereof.

  	
   

  
	
  (iii)

  	
   

  	
  Compliance
  Certificate in the form annexed hereto as Exhibit 4

  	
   

  	
  Within
  twenty-five (25) days after the close of each quarterly period of the
  Borrowers’ fiscal year

  	
   

  

 

(c)          Within twenty-five (25)
days after the close of each quarterly period of the Borrowers’ fiscal year,
quarterly backlog reporting on a consolidated basis.

 

(d)          Within twenty-five (25)
calendar days after the end of each month Borrowers will furnish Agent with a
copy of Borrowers’ consolidated financial statements, all in reasonable detail
and prepared in accordance with GAAP consistently applied, except for the
absence of footnotes and subject to year-end adjustments, provided however that
subsequent to any IPO of GT Solar International, Inc., Borrowers may also deliver
10Q statements within twenty-five (25) calendar days after the close of each
quarterly period of Borrowers’ fiscal year. Said 10Q statements shall be in
place of the monthly statement required hereunder only for such month in which
each quarter closes.

 

(e)          Borrowers will furnish
Agent, annually, as soon as available, and in any event within one-hundred
twenty (120) days after the end of each fiscal year of Borrowers, Borrowers’
audited consolidated financial statements with the unqualified opinion (excluding

 

49

 

qualifications
or opinions related to internal controls and Sarbanes-Oxley reporting
compliance) of one of the “Big Four” national independent certified public
accountants or such other independent certified public accountants selected by
the Borrowers and reasonably acceptable to the Agent, which annual financial
statements shall include the Borrowers’ balance sheet as at the end of such
fiscal year and the related statements of the Borrowers’ income, retained
earnings and cash flows for the fiscal year then ended, all prepared in
reasonable detail and prepared in accordance with GAAP.

 

(f)           Borrower Agent will
promptly, upon receipt thereof, deliver to Agent, copies of any reports
submitted to any Borrower by the Borrowers’ independent public accountants in
connection with the examination of the financial statements of the Borrowers
made by such accountants (the so-called “Management
Letter”).

 

(g)          In addition to the
foregoing, the Borrowers promptly shall provide Agent with such other and
additional information concerning the Borrowers, the Collateral, the operation
of the Borrowers’ business, and the Borrowers’ financial condition, including
financial reports and statements, as Agent may from time to time reasonably
request from the Borrowers. All financial information provided Agent by the
Borrowers shall be prepared in accordance with GAAP applied consistently in the
preparation thereof and with all historical financial statements to fairly reflect
the financial conditions of the Borrowers at the close of, and its results of
operations for, the periods covered by such financial statements.

 

14.           GENERAL
AGREEMENTS  OF  BORROWERS.

 

(a)          The Borrowers agree to
keep all the Collateral insured with coverage and in amounts not less than that
usually carried by one engaged in a like business in similar areas with similar
risk factors with a loss payable endorsement naming Agent for the benefit of
the Lenders and Borrowers, as their interests may appear, and hereby appointing
Agent as attorney for Borrowers in obtaining, adjusting, settling and canceling
such insurance and endorsing any drafts, during the continuance of an Event of
Default;  provided that the Borrowers
shall also be entitled to adjust, settlement or cancel such insurance provided
however, that with respect to any claim which would reasonably likely exceed
$500,000, Borrowers shall not adjust settle or cancel such insurance without
the prior written consent of the Agent, not to be unreasonably withheld or
delayed.

 

(b)          Agent, each Lender and
their respective agents have the right to inspect the Collateral and all
records pertaining thereto at intervals to be determined by Agent and without
hindrance or delay. Agent shall have the right to obtain a full appraisal of
the Borrowers’ Inventory and Equipment at any time following an Event of
Default hereunder from appraisers of Agent’s (with Required Lender’s approval)
selection and at the sole cost and expense of Borrowers.

 

(c)          Although, as above set
forth, Agent has a continuing security interest in all of Borrowers’ Collateral
(other than with respect to Collateral which in the aggregate is immaterial)
and in the proceeds thereof, Borrowers will at all times be in compliance with
the Financial Covenants herein subject to cure periods set forth in Section
16(a)(iii) with respect to any breach of the Financial Covenant set forth
in Section 15(a) (based upon information

 

50

 

provided to
Agent in the most recently delivered Compliance Certificate, pursuant to the
terms herein), and if Borrowers fail to do so, Borrowers will immediately
either (i) make a reduction in the unpaid principal amount of said Revolving
Loans necessary to bring the Financial Covenants into compliance, or (ii) post
the required cash collateral with the Agent necessary to bring the Financial
Covenants into compliance.

 

(d)          Borrowers will at all
times keep accurate and complete in all material respects records of Borrowers’
Inventory, Accounts and other Collateral, and Agent (who may be accompanied by
the Lenders) and/or any of its or their respective  agents, shall have the right to call at
Borrowers’ place or places of business at intervals to be determined by Agent,
(but not more than two (2) times in any twelve (12) month period absent the
occurrence and continuance of an Event of Default hereunder) and without
hindrance or delay, to inspect, audit, check, and make extracts from any copies
of the books, records, journals, orders, receipts, correspondence which relate
to Borrowers’ Accounts, and other Collateral or other transactions, between the
parties thereto and the general financial condition of Borrowers and Agent may
remove any of such records temporarily for the purpose of having copies made
thereof. Borrowers shall pay to Agent all reasonable inspection fees, plus all
travel and other reasonable out-of-pocket expenses incurred in connection with
any such inspection. Notwithstanding the aforesaid, the parties acknowledge
that the Agent has performed an inspection in connection with the closing of
this Agreement and may perform a re-inspection within one hundred-eighty (180)
days from the date hereof. The Agent shall determine, in its sole discretion
based upon the results of said re-inspection, the frequency of any further
inspections, but in any event, not to exceed two (2) times in any twelve (12)
month period, unless approved by Borrower Agent.

 

(e)          Borrowers will notify
Agent prior to its entering into any license, contract or other agreement
valued over $50,000.00 which, by it terms, is not assignable to Agent and the
Lenders without consent of the licensor or other party to such agreement,
provided however that Borrowers agree that they shall use all commercially
reasonable efforts to obtain said consents (in form and substance reasonably
satisfactory to Agent) at the time of entering into such license, contract or
other agreement, and if not practically possible at such time, then Borrower
shall continue to use all commercially reasonable efforts to obtain such
consent within thirty (30) days from from the date of such license, contract or
other agreement. Upon request by Agent, Borrowers shall deliver a copy of any
such license, contract or other agreement to Agent within five (5) Business
Days of Agent’s request therefor. Borrowers further agree that they shall use
all commercially reasonable efforts to obtain such consent from the licensors
with respect to that certain Contract for the license of construction and
commercialization of the 36 rod polysilicon deposition Reactor and STC
(silieontetrachloride) Converter of Poly Engieering Srl dated as of March 14,
2006, within thirty (30) days from the date of this Agreement, and shall
otherwise use commercially reasonable efforts to obtain such consents from
existing licensors, as Agent shall reasonably request.

 

(f)           Each Borrower will
maintain its legal existence in good standing in its state of organization or
any other place where such Borrower operates and is required to maintain legal
existence and comply with all laws and regulations of the United States or of
any state or states thereof or of any political subdivision thereof, or of any
governmental authority

 

51

 

which may be
applicable to it or to its business, in each case except to the extent any
contravention could not reasonably be expected to result in a Material Adverse
Effect.

 

(g)          Each Borrower will pay
all real and personal property taxes, assessments and charges and all
franchises, income, unemployment, old age benefits, withholding, sales and
other taxes assessed against it, or payable by it at such times and in such
manner as to prevent any penalty from accruing or any Lien or charge from
attaching to the Collateral or any of its property, provided that, if any such
obligation is being contested by any Borrower in good faith and diligently
prosecuted, (i) such Borrower shall provide written notice thereof to Agent
prior to the date of such contest and make adequate provision for the payment
of all such obligations in a manner such that no Lien will encumber any
Collateral, and (ii) the Agent shall be satisfied that, while such contest is
pending, there will be no impairment of the enforceability, validity or priority
of any of the Liens of the Agent and the Lenders in and to the Collateral, or
(iii) the failure to pay such taxes, assessments or charges could not
reasonably be expected to result in a Material Adverse Effect on such Borrower
or the Borrowers, and does not otherwise violate the covenant set forth in Section
15(q) herein. Borrowers will, upon reasonable request of Agent, promptly
furnish Agent receipted bills for any payments under this Section 14(g).
At its option, Agent may discharge taxes, Liens or security interests or other
encumbrances at any time levied or placed on the Collateral, may pay for
insurance on Collateral and may pay for the maintenance and preservation of the
Collateral. Borrowers agree to reimburse Agent within ten (10) Business Days
for any payments made, or any expenses incurred by Agent pursuant to the
foregoing authorization, and upon failure of the Borrowers to so reimburse
Agent, any such sums paid or advanced by Agent shall be deemed secured by the
Collateral and constitute part of the Obligations.

 

(h)          Within three (3)
Business Days’ prior notice to the Borrower Agent, Agent may communicate with
account debtors in order to verify with them to Agent’s satisfaction the
existence, amount and terms of any Accounts.

 

(i)           Nowithstanding anything
to the contrary contained herein, Borrowers shall enter into Control Agreements
with all of its current depository banks within thirty (30) days from the date
of this Agreement, which such time may be extended with the consent of the
Agent. With respect to any deposit accounts established after the date of this
Agreement with any institutions other than Agent or any Lender, Borrowers shall
enter into a Control Agreement with respect to each such deposit account at the
time each such deposit account is opened.

 

(j)           If any Borrower’s
Accounts valued at Fifty Thousand and 00/100 Dollars ($50,000.00) in the
aggregate at any time outstanding, arise out of contracts with the United
States or any department, agency, or instrumentality thereof, such is issued
such Borrower will promptly notify Agent thereof in writing and to the extent
reasonably requested by the Agent execute any instruments and take any steps
required by Agent in order that all monies due and to become due under such
contracts shall be collaterally assigned to Agent and notice thereof given to
the Government under the Federal Assignment of Claims Act, to the extent
permitted by and in compliance with the applicable laws.

 

(k)          If any Borrower is owed
money evidenced by any promissory notes, 
or other instruments for the payment of money, valued in the aggregate
in excess of Fifty Thousand

 

52

 

and 00/100
Dollars ($50,000.00), then such Borrower will promptly deliver same to Agent,
accompanied by an allonge or transfer executed in blank.

 

(l)           If any Inventory (other
than Inventory in transit or out for repair) of any Borrower valued in excess
of Fifty Thousand and 00/100 Dollars ($50,000.00) in the aggregate, are at any
time in the possession of a bailee, the applicable Borrower shall promptly
notify Agent thereof and, if requested by Agent, shall promptly use
commercially reasonable efforts to obtain an acknowledgment from the bailee, in
form and substance reasonably satisfactory to Agent, that the bailee holds such
Collateral for the benefit of Agent and shall act upon the instructions of
Agent, without the further consent of such Borrower. Agent agrees with such
Borrower that Agent shall not give any such instructions unless an Event of
Default has occurred and is continuing.

 

(m)         If any Borrower is at any
time a beneficiary under a letter of credit now or hereafter issued in favor of
Borrower, such Borrower shall upon the occurrence of an Event of Default,
promptly notify Agent thereof and, during the continuance of any such Event of
Default, Borrower shall, pursuant to an agreement in form and substance
satisfactory to Agent, use all reasonable efforts to either (i) arrange for the
issuer and any confirmer of such existing letter of credit to consent to an
assignment to Agent of the proceeds of any drawing under the letter of credit,
or (ii) arrange for Agent to become the transferee beneficiary of the existing
letter of credit, with Agent agreeing, in each case, that the proceeds of any
drawing under the letter of credit are to be applied  in the same manner as any other payment on an
Account. Additionally, during the continuance of any Event of Default, if any
Borrower becomes a beneficiary under a letter of credit, then Borrower shall
(i) arrange for the issuer and any confirmer of such letter of credit to
consent to an assignment to Agent of the proceeds of any drawing under the
letter of credit, or (ii) arrange for Agent to become the transferee
beneficiary of the letter of credit, with Agent agreeing, in each case, that
the proceeds of any drawing under the letter of credit are to be applied  in the same manner as any other payment on an
Account

 

(n)          Borrowers shall notify
Agent as soon as is commercially reasonable of any commercial tort claims held
or acquired by any Borrower reasonably valued in excess of $50,000.00, and
shall, within five (5) Business Days of request thereof, provide copies of such
claims to Agent. If any Borrower shall at any time hold or acquire a commercial
tort claim reasonably valued by Borrowers or Agent in excess of $50,000.00,
such Borrower shall, within five (5) Business Days thereof, notify Agent in a
writing signed by such Borrower of the brief details thereof and grant to Agent
in such writing a security interest therein, and in the proceeds  thereof, all upon the terms of this
Agreement, with such writing to be in form and substance reasonably
satisfactory to Agent.

 

(o)          [Reserved.]

 

(p)          Each Borrower will
promptly notify Agent upon receipt of notification of any potential or known
release or threat of release of hazardous materials, hazardous waste, hazardous
or toxic substance or oil from any site operated by such Borrower or of the
incurrence of any expense or loss in connection therewith which could reasonably
be expected to cost Two Hundred Fifty Thousand and 00/100 Dollars ($250,000.00)
or more, or with any Responsible

 

53

 

Officer of
such Borrower’s obtaining knowledge of any investigation, action or the incurrence
of any expense or loss by any governmental authority in connection with the
assessment, containment or removal of any hazardous material or oil for which
expense or loss such Borrower may be liable and which could reasonably be
expected to cost Two Hundred Fifty Thousand and 00/100 Dollars ($250,000.00) or
more. As used herein, the terms “hazardous waste,” “hazardous or toxic
substance,”  “hazardous material” or “oil”
shall have the same meanings as defined and used in any of the following (the “Acts”): the Comprehensive Environmental
Response, Compensation and Liability Act of 1980, 42 USC Sections 9601-9657, as
amended by the Superfund Accounts and Reauthorization Act of 1986; the Federal
Resource Conservation and Recovery Act, 42 USC Sections 6901 et seq.;
the Hazardous Materials Transportation Act, 49 USC Sections 1801 et seq.;
the Toxic Substances Control Act, 15 USC Sections 2601 et seq.; the
Federal Water Pollution Control Act, 33 USC Sections 1251 et seq.; the
Clean Air Act, 42 USC Sections 741 et seq.; the Clean Water Act, 33 USC
Section 701; the Safe Drinking Water Act, 42 USC Sections 300(f)-300(j); the
New Hampshire Revised Statutes Chapter 21-P, as amended; and/or the regulations
adopted and publications promulgated pursuant to any of the Acts, as the same
may be amended from time to time.

 

(q)          [Reserved.]

 

(r)           [Reserved.]

 

(s)          Should any Borrower fail
to make any of such deposits or furnish such proof of deposit or payment, then
Agent may, in its sole and absolute discretion, within five (5) days prior
notice to Borrower Agent, (a) make any of such deposits or any part thereof,
(b) pay such taxes, or any part thereof, or (c) set up such reserves as Agent,
in its judgment, shall deem necessary to satisfy the liability for such taxes. Each
amount so deposited or paid shall constitute an advance under the terms hereof,
repayable on demand with interest, as provided herein, and secured by all
Collateral and any other property at any time pledged by Borrowers with Agent. Nothing
herein shall be deemed to obligate Agent to make any such deposit or payment or
set up such reserve and the making of one or more of such deposits or payments
or the setting up of such reserve shall not constitute (i) an agreement on
Agent’s part to take any further or similar action, or (ii) a waiver of any
default by Borrowers under the terms hereof.

 

(t)           All advances by Agent
and each Lender to Borrower Agent of the Revolving Loans under this Agreement
and under any Other Document constitute one general revolving fluctuating loan,
and all indebtedness of Borrowers to Agent under this and under any Other
Document constitute one general Obligation. Each Revolving Loan advance to
Borrowers hereunder or otherwise shall be made upon the security of all of the
Collateral held and to be held by Agent. It is distinctly understood and agreed
that all of the rights of Agent contained in this Agreement shall likewise
apply, insofar as applicable, to any modification of or supplement to this
Agreement and to any other agreements between Agent, Lenders and Borrowers. Any
default of this Agreement by any Borrower shall constitute, likewise, a default
by Borrowers of any Other Documents, and any default by any Borrower of any
Other Documents shall constitute a default of this Agreement. The entire
Obligation of Borrowers to Agent and each Lender shall become due and payable
upon termination of this Agreement.

 

54

 

(u)          Each Borrower hereby
grants to Agent for a term to commence on the date of this Agreement and
continuing thereafter until all Obligations owing from Borrowers to Agent and
the Lenders  are fully paid and
discharged, the right, subject in each case to any limitation contained in such
Borrower’s leases, to use all premises or places of business which Borrower
presently has or may hereafter have and where any of the Collateral may be
located, at a total rental for the entire period of $1.00. Agent agrees not to
exercise the rights granted in this paragraph unless and until Agent determines
to exercise its rights against the Collateral, in accordance with the terms
herein.

 

(v)          Each Borrower will, at
its expense, upon request of Agent promptly and duly execute and deliver such
documents and assurances and take such actions as may be reasonably necessary
or desirable or as Agent may request or to more effectively carry out the
intent and purpose of this Agreement.

 

(w)         [Reserved.]

 

(x)          Borrowers hereby grant
to Agent for a term to commence on the date of this Agreement and continuing
thereafter until all Obligations owed to Agent are fully paid and discharged, a
non-exclusive irrevocable royalty-free license in connection with Agent’s
exercise of its rights hereunder, to use, apply or affix any trademark, trade
name logo or the like and to use any patents, in which any Borrower now or
hereafter has rights, which license may be used by Agent solely upon and after
the occurrence of any one or more of the Events of Default, provided, however,
that such use by Agent shall be at a high level of quality control at least at
a level consistent with the Borrowers’ quality control in connection with the
products or services offered under the licensed trademarks, service, marks,
trade names, logos, or the like to preserve the validity of such trademarks,
service marks, trade names, logos, and the like and shall be suspended if such
Events of Default are cured. This license shall be in addition to, and not in
lieu of, the inclusion of all of Borrowers’ trademarks, service marks, trade
names, logos, goodwill, patents, franchises and licenses in the Collateral.

 

15.           BORROWERS’
NEGATIVE COVENANTS. Borrowers will not at any time:

 

(a)          (quarterly Proforma
EBITDA) permit (for two consecutive quarters), its Proforma EBITDA to be
less than Three Million and 00/100 Dollars ($3,000,000.00) as of March
2007,  and thereafter measured quarterly
on the last day of each fiscal quarter, which amount shall be increased to Five
Million and 00/100 Dollars ($5,000,000.00) commencing with the fiscal quarter
ending March 31, 2008, and further increased to Ten Million and 00/100 Dollars
($10,000,000.00) commencing with the quarter ending March 31, 2009.

 

55

 

(b)          (Total Funded Debt to
Trailing Twelve-Month Proforma EBITDA) permit the ratio of Total Funded
Debt to Proforma EBITDA to exceed the ratios set forth below at such time
period indicated therein, measured quarterly, on the last day of the fiscal
quarter, on a trailing twelve (12) month basis:

 

	
  Measurement Dates

  	
   

  	
  Maximum Ratio

  	
   

  
	
  March 2007

  	
   

  	
  3.50

  	
  x

  
	
   

  	
   

  	
   

  	
   

  
	
  June 2007 –
  December 2007

  	
   

  	
  3.25

  	
  x

  
	
   

  	
   

  	
   

  	
   

  
	
  March 2008
  and thereafter

  	
   

  	
  3.00

  	
  x

  

 

At Borrowers’
option the Agent will accept intra-quarter reporting, but in any event, not
more frequently than monthly, on a trailing twelve (12) month basis, for
purposes of the covenant compliance, only.

 

(c)          (Debt Service
Coverage Ratio) permit its Debt Service Coverage Ratio, on a consolidated
basis, to be less than 1.25 to 1.00 measured annually, as of the last day of
the fiscal year.

 

(d)          (Capital Expenditures)
incur or contract to incur Capital Expenditures of more than Five Million and
00/100 Dollars ($5,000,000.00) in the aggregate during any fiscal year.

 

(e)          (Dividends and
Distributions)  not declare or pay
any dividends on any class of its stock, or make any payment on account of the
purchase, redemption or other retirement of any shares of such stock, or other
securities or evidence of its indebtedness or make any distribution in respect
thereof, either directly or indirectly, other than in an amount that would not
exceed fifty percent (50%) of the consolidated Net Income of the
Borrowers,  provided however, that (i) no such dividends or
distributions shall be made in the event that there exists a Default or Event
of Default hereunder, or in the event that a Default would occur immediately
after giving effect to such payment, including without limitation, any
violation of any Financial Covenants herein, except that Borrowers shall be allowed in any event to
make minimum distributions to pay federal and state income taxes then due and
owing and franchise taxes, but in no event shall any such allowed distributions
exceed fifty percent (50%) of the consolidated Net Income of the Borrowers; and
(ii) there shall be no limitation with respect to any such dividends or
distributions by and between any Borrowers or Guarantors whose operations are
included in the consolidated GAAP financial statements delivered in connection
with this Agreement (therefore, excluding GT Holdings).

 

(f)           (Sublimit Reduction)
permit the applicable borrowings hereunder to exceed the applicable WC
Sub-Limit.

 

(g)          (Disposition of
Collateral) sell, assign, exchange or otherwise dispose of any of the
Collateral, other than assets consisting of (i) scrap, waste, defective goods
and the like; (ii) obsolete, negligible or uneconomical assets, (iii) Inventory
sold in the ordinary course of

 

56

 

business
(including any interest therein) (iv) intellectual property abandoned in the
ordinary course of business, (v) assets which are no longer required or deemed
necessary or useful in the conduct of the Borrowers’ business, so long as the
Borrowers receive therefor a sum substantially equal to such asset’s fair
value, and either remits such Net Cash Proceeds of such disposition which
exceed, in the aggregate, Fifty Thousand and 00/100 Dollars  ($50,000.00) to Agent within three (3)
Business Days of such Borrower’s receipt thereof, to be applied to the
Obligations pursuant to Section 11(a) or such Net Cash Proceeds are
reinvested within one hundred eighty (180) days from the date of receipt of
such Net Cash Proceeds, in  other assets
useful in the business and subject to a first priority Lien in Agent’s favor
(subject to any Liens permitted hereunder), (vi) dispositions otherwise
permitted hereunder, (vii) the sale or issuance of equity interests by a
Borrower to another Borrower, (viii) the licensing of patents, trademarks,
copyrights and other intellectual property rights in the ordinary course of business
subject to a first priority Lien in Agent’s favor, (ix) leases and subleases
(as lessee or lessor) and licenses and sublicenses (as licensee or licensor)
permitted by Section 15(h), (x) in connection with an IPO, the issuance
of equity interests by GT International and/or the distribution by GT Holdings
of its equity interest in GT International to its unit holders, (xi) the sale
of Cash Equivalents for fair value and the use of cash for purposes that are
otherwise permitted by the terms of this Agreement in the ordinary course of
business, (xii) terminations of leases in the ordinary course of business,
(xiii) any disposition of real property to a Governmental Authority as a result
of a condemnation of such real property, provided however that any Net Cash
Proceeds of such disposition which exceed Fifty Thousand and 00/100 Dollars
($50,000.00) in the aggregate, are remitted to Agent within three (3) Business
Days of such Borrower’s receipt thereof, to be applied to the Obligations
pursuant to Section 11(a), or reinvested within one hundred eighty (180)
days from the date of receipt of the Net Cash Proceeds from such disposition in
assets useful in the business and subject to a first priority Lien in Agent’s
favor (subject to Liens permitted hereunder); (xiv) sale of non-core asssets
obtained in connection with an acquisition permitted by Section 15(n),
herein, provided that such assets are sold within twelve (12) months from the
date of closing of such acquisition, and that the Net Cash Proceeds of such disposition
are remitted to Agent within three (3) Business Days of such Borrower’s receipt
thereof to be applied to the Obligations pursuant to Section 11(a), or
reinvested within one hundred eighty (180) days from the date of receipt of
such Net Cash Proceeds, in other assets useful in the business and subject to a
first piority Lien in Agent’s favor; and (xv) dispositions not otherwise
provided for herein in the total aggregate amount not to exceed One Hundred
Thousand and 00/100 Dollars ($100,000.00) in any fiscal year, provided however,
that the Net Cash Proceeds of such disposition are remitted to Agent within
three (3) Business Days of such Borrower’s receipt thereof to be applied to the
Obligations pursuant to Section 11(a), or reinvested within one hundred
eighty (180) days from the date of receipt of such Net Cash Proceeds, in other
assets useful in the business and subject to a first piority Lien in Agent’s
favor, subject to Liens permitted herein.

 

(h)        (Liens) create,
permit to be created or suffer to exist any lien, encumbrance or security
interest of any kind (“Lien”) upon
any of the Collateral or any other property of Borrowers, now owned or
hereafter acquired, except: (i) landlords’, carriers’, warehousemen’s,
mechanics’ and other similar Liens arising by operation of law in the ordinary
course of Borrowers’ business; (ii) arising out of pledge or deposits under or
in connection with worker’s compensation, unemployment insurance, old age
pension, social security, retirement

 

57

 

benefits or
other similar legislation; appeal bonds, customs bonds, bids, leases,
government contracts, trade contracts, performance and return of money bonds
and other similar obligations (exclusive of obligations for payment of borrowed
money); (iii) purchase money Liens arising in the ordinary course of business
or Liens incurred in connection with Capital Leases for the purchase of Goods
(so long as the Indebtedness secured thereby does not exceed the lesser of the
cost or fair market value of the property subject thereto, measured at the time
of entering into said purchase money arrangement or Capital Lease, and such
Lien extends to no other property) (other than proceeds therefrom); (iv) Liens
for unpaid taxes which do not constitute a breach of Section 14(g); (v)
those Liens and encumbrances set forth on Schedule
“B” annexed hereto; and
(vi) in favor of Agent for the benefit of the Lenders and each of their
Affiliates party to a Hedging Contract, to secure the Obligations; (vii)
easements, rights-of-way, restrictions, licenses, sublicenses and other similar
charges or encumbrances or other minor irregularities in title (including
leasehold title), so long as the same do not materially impair the value of the
relevant property or the ordinary conduct of the business of any Borrower;
(viii) any attachment or judgment Liens which do not otherwise constitute an
Event of Default; (ix) Liens evidenced by financing statements filed under the
Uniform Commercial Code for precautionary notice purposes in connection with a
true lease of personal property under which Borrowers provided such financing
statement does not cover any property other than that which is subject to such
lease; (x) licenses, leases, sublicenses or subleases granted to third Persons
in the ordinary course of business, in each case not interfering in any
material respect with the conduct of the business of any Borrower; (xi)
customary security deposits under leases and subleases; (xii) Liens in favor of
customs and revenue authorities arising as a matter of law to secure payment of
customs duties in connection with the importation of goods in the ordinary
course of business; (xiii) Liens (a) of a collection bank arising under Section
4-210 of the Uniform Commercial Code on items in the course of collection; and
(b) bankers’ Liens, rights of setoff and other similar Liens existing solely
with respect to cash and Cash Equivalents on deposit in one or more accounts
maintained by any Borrower, in each case granted in the ordinary course of
business in favor of the bank or banks with which such accounts are maintained,
as permitted herein, securing amounts owing to such bank with respect to
operating account arrangements, provided that in no case shall such Liens
secure (either directly or indirectly) the repayment of any Indebtedness (other
than on account of such overdrafts, netting or cash management), and provided
further than any such Liens (other than with respect to the Excluded Deposit
Accounts) shall be subordinate to the Lenders’ Liens and the deposit accounts
shall be subject to a “control agreement” between said depository bank and
Agent in form and substance acceptable to Agent in its sole discretion; (xiv)
Liens on property existing at the time such property is acquired so long as, to
the extent applicable, such merger or acquisition is permitted hereunder;
provided that such Liens do not extend to property not subject to such Liens at
the time of acquisition; (xv) Liens arising by operation of law under Article 2
of the UCC in favor of reclaiming seller of goods or buyer of goods; (xvi)
Liens attaching solely to cash earnest money deposits in connection with any
letter of intent or purchase agreement in connection with a acquisition
permitted hereunder; (xvii) Liens arising out of conditional sale, title
retention, consignment or similar arrangements for the sale of goods entered
into by any Borrower in the ordinary course of business in accordance with the
past practices of such Borrower; (xviii) any interest or title of a licensor,
sublicensor, lessor or sublessor under any license or operating or true lease
agreement in which a Borrower is the licensee or lessee; (xix) Liens on
securities which are the subject of repurchase agreements

 

 

58

 

incurred in
the ordinary course of business in connection with an investment in Cash
Equivalents; (xx) other Liens with respect to obligations which do not exceed
One Hundred Thousand and 00/100 Dollars ($100,000.00) at any time outstanding.

 

(i)          (Loans)  except for (i) loans existing as of the
date hereof, as set forth on in Borrowers’ financial statements, (ii)
transactions otherwise permitted herein, or (iii) financing arranged in
connection with the sale of Inventory in the ordinary course of business but in
any event not to exceed Three Million Five Hundred Thousand and 00/100 Dollars
($3,500,000.00) at any time outstanding (the “Inventory
Sale Financing”), and provided further that the term for repayment
of any such Inventory Sale Financing shall not exceed twelve (12) months, make
any loans or advances to any individual, partnership, trust or other
corporation, including without limitation any of Borrower’s directors, officers
and employees, except advances to officers or employees with respect to
expenses incurred by them in the ordinary course of their duties which are
properly reimbursable by such Borrower.

 

(j)           (Guarantees)
except for (i) guarantees in favor of Agent and Lenders, (ii) contractual
indemnities and warranties issued in the ordinary course of business and (iii)
any guarantees otherwise permitted hereunder with respect to Indebtedness
permitted hereunder,  assume, guaranty,
endorse or otherwise become directly or contingently liable in respect of
(including without limitation by way of agreement, contingent or otherwise, to
purchase, provide funds to or otherwise invest in a debtor or otherwise to
assure a creditor against loss), any indebtedness (except guarantees by
endorsement of instruments for deposit or collection in the ordinary course of
business and guarantees in favor of Agent) of any individual, partnership,
trust or other limited liability company.

 

(k)          (Investments) (i)
use any loan proceeds to purchase or carry any “margin stock” (as defined in
Regulation U of the Board of Governors of the Federal Reserve System) or (ii)
invest in or purchase any stock or securities or membership interest of any
individual, partnership, trust, corporation or other limited liability company
except (a) extensions of trade credit in the ordinary course of business; (b)
Investments in cash and Cash Equivalents; (c) investments in non-cash
consideration received in connection with dispositions to the extent permitted
under Section 15(g); (d) intercompany investments by the Borrowers in
other Borrowers; (e) Investments existing as of the Closing Date and identified
on Schedule 15(k);
(f) any investment resulting from entry into any Hedge Contract or other
agreements creating other Hedging Obligations in the ordinary course of
business for non-speculative purposes; (g) investments received in settlement
of amounts due to any Borrower effected in the ordinary course of business or
owing to such Borrower as a result of the insolvency proceedings involving an
account debtor or upon the foreclosure enforcement or compromise of any Lien in
favor of the Borrowers; (h) customary security deposits made by the Borrowers
and their Subsidiaries under leases and with utility companies; (i) make
prepayments and deposits to suppliers in the ordinary course of business;
(j)  investments in deposit accounts or
securities accounts as permitted pursuant to Section 11(c) herein,
provided such deposit accounts or securities accounts are subject to deposit
account control agreements or securities account control agreements as required
hereunder; (k) the Borrowers may capitalize or forgive any Indebtedness owed to
it by other Borrowers; (l) earnest money required in connection with
acquisitions permitted by Section 15(n), below; (n) any investments acquired
in connection with acquisitions permitted by Section

 

59

 

15(n),
below; (o) the Borrowers may establish wholly-owned Subsidiaries to the extent
such wholly-owned Subsidiaires are, simultaneously upon such formation,
obligated to become Guarantors hereunder and provided further that such
Subsidiaries execute any and all documentation with respect the guaranteed
Obligations as may be reasonably required by the Agent within fifteen (15)
Business Days from the date of such establishment; (p) Investments to the
extent such Investment reflects an increase in the value of Investments
otherwise permitted under this Section 15(k); (q) Investments in the
ordinary course of business consisting of endorsements of negotiable
instruments for collection or deposit; and (r) investments as may be allowed
pursuant to Section 15(l) herein.

 

(l)           (Transactions with
Affiliates) enter into any lease or other transaction with any shareholder,
officer or Affiliate on terms any less favorable than those which might be
obtained at the time from Persons who (or entities which) are not such a
shareholder, officer or Affiliate other than (i) transactions specifically
permitted herein; (ii) payment of reasonable compensation to officers and
employees for services actually rendered to any Borrower or any of its
Subsidiaries; (iii) payment of customary director’s fees and expense
reimbursement and indemnification of officers and directors; (iv) stock option,
stock incentive, equity, bonus and other compensation plans of the Borrowers
and the issuance of shares thereunder; (v) as set forth on Schedule 15(l); (vi) loans to
employees, directors or officers of any Borrower specifically for purchase of
GT International capital stock or options, provided that such loans do not
require a cash advance by any Borrower and provided further that the aggregate
value of any such loans outstanding at any time shall not exceed in the
aggregate, a value of One Million Five Hundred Thousand and 00/100 Dollars
($1,500,000.00); (vii) other loans and advances to employees, directors or
officers of any Borrower for any purpose in an aggregate amount not to exceed
Two Hundred Fifty Thousand and 00/100 Dollars ($250,000.00) at any one time
outstanding; and (viii) other transactions as may be allowed pursuant to Section
15(k), herein.

 

(m)         (Subsidiaries)
except as otherwise permitted herein, sell, transfer or otherwise dispose of
any stock of any Subsidiary of any Borrower, except in the event that: (A) (i)
the assets of the Subsidiary being sold, transferred or otherwise disposed are
transferred into a Borrower prior to the consummation of any such transaction;
(ii) the proceeds from such transaction are re-invested into a Borrower within
thirty (30) days of receipt; or (iii) the proceeds from such transaction are
applied to prepay the Revolving Loans; or (B) are being issued or distributed
in connection with an IPO permitted hereunder.

 

(n)          (Mergers,
Consolidations, Sales or Asset Purchases) (i) merge or consolidate with or
into any corporation or other entity; (ii) enter into any joint venture or
partnership with any person, firm or corporation; (iii) convey, lease or sell
all or any material portion of its property or assets or business to any other
person, firm or corporation, except for the sale of Inventory in the ordinary
course of its business; or (iv) acquire all the stock or other ownership
interest or all or substantially all the assets of any other entity without
prior written approval of the Agent, except (a) purchases in the ordinary
course of business and except for purchases not to exceed Two Million Five
Hundred Thousand and 00/100 Dollars ($2,500,000.00) per transaction, or Five
Million and 00/100 Dollars ($5,000,000.00) per fiscal year, provided however
that (i) Borrowers shall provide Agent with prior written notice of any such acquisition,
including all financial disclosures with respect to such acquisition as may be

 

60

 

requested by
the Agent in its reasonable discretion, (ii) the acquisition shall be accretive
upon closing, and (iii) the corporation or entity being acquired must be in the
same, related, ancillary or complimentary business as the Borrowers; (b) any
merger or consolidation by any Borrower with another Borrower or Guarantor or
any merger of any Guarantor with any other Guarantor; (c) liquidation of GT
Holdings in connection with an IPO permitted hereunder and (d) other
investments expressly permitted by Section 15(k).

 

(o)          (Anti-Terrorism Laws)  No Borrower, or any Guarantor, shall (i)
conduct any business or engage in any transaction or dealing with any Blocked
Person, including the making or receiving any contribution of funds, goods or
services to or for the benefit of any Blocked Person, (ii) deal in, or
otherwise engage in any transaction relating to, any property or interests in
property blocked pursuant to Executive Order No. 13224; or (iii) engage in or
conspire to engage in any transaction that evades or avoids, or has the purpose
of evading or avoiding, or attempts to violate, any of the prohibitions set
forth in Executive Order No. 13224, the USA Patriot Act or any other
Anti-Terrorism Law. Borrowers shall deliver to Agent any certification or other
evidence reasonably requested from time to time by any Lender in its sole
discretion, confirming Borrowers’ compliance with this Subsection 15(m),

 

(p)          (Change in Legal
Status) Except with ten (10) days’ prior notice to the Agent, (i) change
its name, its place of business or, if more than one, chief executive office,
or its mailing address or organizational identification number if it has one,
and (ii) change its type of organization, jurisdiction or organization or other
legal structure. If such Borrower does not have an organizational
identification number and later obtains one, such Borrower shall promptly
notify the Agent of such organizational identification number.

 

(q)          (Indebtedness)  incur Indebtedness or suffer to exist
Indebtedness other than (i) Indebtedness to the Agent and the Lenders evidenced
and permitted hereby; (ii) Hedging Obligations and other obligations under
Hedging Contracts incurred from time to time; (iii) Indebtedness existing as of
the Closing Date and identified in Schedule 15(q) attached hereto; (iv)
intercompany Indebtedness owed by any Borrower to another Borrower; (v)
Indebtedness arising from the honoring by a bank or other financial institution
of a check, draft or similar instrument drawn against insufficient funds in the
ordinary course of business of the Borrowers; provided that such indebtedness
is extinguished within five (5) Business Days of incurrence, (vi) contingent
obligations in respect of Indebtedness otherwise permitted under this Section
15(q); provided that such contingent obligations are subordinated to the
Obligations to the same extent as the Indebtedness to which it relates is
subordinated to the Obligations, (vii) contingent liabilities under surety
bonds, customs and appeal bonds, governmental contracts and leases or similar
instruments incurred in the ordinary course of business, (viii) Subordinated
Indebtedness, (ix) Indebtedness incurred in the ordinary course of business
consisting of the financing of insurance premiums, (x) Indebtedness in respect
of workers’ compensation claims, self-insurance obligations, performance bonds,
export or import indemnitees or similar instruments, customs bonds,
governmental contracts, leases, surety appeal or similar bonds and completion
guarantees provided by a Borrower in the ordinary course of its business, (xi)
Indebtedness constituting the obligation to make customary purchase price
adjustments for working capital and indemnities in connection with acquisitions
permitted by Section 15(n) herein; (xii) without duplication of any
other Indebtedness, non-cash accruals of interest, accretion or amortization of
original issue

 

61

 

discount and
payment-in-kind interest with respect to Indebtedness permitted hereunder, (xiii)
Indebtedness in respect of taxes, assessments or governmental charges to the
extent that payment thereof shall not at the time be required to be made to
avoid a Default under Section 14(g), but in any event not more than
Fifty Thousand and 00/100 ($50,000.00) Dollars in the aggregate; (xiv)
Indebtedness consisting of incentive, non-compete, consulting, deferred
compensation or other similar arrangements entered in the ordinary course of
business with an officer or employee of a Borrower, and (xv) except to the
extent otherwise provided in a “control agreement” or Other Document,
Indebtedness in respect of netting services and overdraft protections in
connection with deposit accounts, in each case in the ordinary course of
business.

 

(r)           (Subordinated Debt)
take or participate in any action which would be prohibited under the
provisions of any subordination or standby agreement or make any payments with
respect to any Subordinated Indebtedness pursuant to any subordination or
standby agreement, except as specifically provided in any such agreement.

 

(s)          (Management)
change or replace any Key Person without providing notice to Agent (i) within a
minimum of five (5) Business Days prior to any termination, and (ii) not later
than five (5) Business Days after a voluntary departure.

 

Notwithstanding
the limitations set forth in Sections 15  (i), (k), and (q),
herein to the contrary, the Borrowers shall be permitted to (a) make any loans
to and investments in any non-Borrower, non-Guarantor, non wholly-owned Subsidiaries
(whether foreign or domestic); and (b) incur Indebtedness arising in the
ordinary course of business, provided that
in no event shall the maximum aggregate amount outstanding at any time for the
aforesaid allowances exceed One Million and 00/100 Dollars ($1,000,000.00), and
provided further that all loans
and Indebtedness arising under this paragraph shall at all times remain current
and Borrower Agent shall provide Agent with written notice in the event that
more than fifty percent (50%) of any such loans and/or Indebtedness outstanding
are in default.

 

Further
notwithstanding any provision to the contary contained in this Agreement, no
Borrower shall be allowed to transfer any assets to GT Holdings at any time
except as allowed pursuant to Section 15(e), herein.

 

16.           DEFAULT;
RIGHTS AND REMEDIES UPON DEFAULT.

 

(a)           Upon the occurrence of
any one or more of the following events (herein, “Events  of  Default”), Agent, shall at the option and
direction of the Required Lenders decline to make any or all further Revolving
Loans or issue Letters of Credit hereunder and all Obligations of the Borrowers
to Agent and Lenders shall become immediately due and payable, at the option of
the Required Lenders and without notice or demand:

 

(i)            The failure by the Borrowers to pay when
due any principal, or interest within one Business Day from when due pursuant
to the Notes or the failure by the Borrowers to pay within three (3) Business
Days when due, any fees, costs, and expenses or other Obligations when due
pursuant to this Agreement or the Notes.

 

62

 

(ii)           [Reserved.]

 

(iii)          Default by the Borrowers in the observance or
performance of any of the covenants or agreements of the Borrowers contained in
Section 14(i),  Section 14(p),
Article 13 or Article 15 of this Agreement, provided however,
that the covenant contained in Section 15(a) shall not be considered to
be in default unless such covenant remains non-compliant for two (2)
consecutive quarters (as noted in Section 15(a), and without
duplication).

 

(iv)          Except as otherwise expressly set forth in
this Section 16, the failure by the Borrowers to promptly, punctually
and faithfully perform, or observe any term, covenant or agreement on its part
to be performed or observed pursuant to any of the provisions of this Agreement
or in any Other Document with Agent which is not remedied within fifteen (15)
days after the earlier of (i) notice thereof by Agent to Borrower Agent, or
(ii) the date a Responsible Officer obtains knowledge of such failure to
perform..

 

(v)           Any representation or warranty heretofore,
now or hereafter made by any Borrower to Agent or any Lender, in this Agreement
or the Other Documents shall prove to be false or misleading in any material
respect.

 

(vi)          The occurrence of any event (after giving
effect to any cure periods, amendments or waivers thereof) such that the
holders of any Indebtedness, including Subordinated Indebtedness (in principal
amounts outstanding in excess of Five Hundred Thousand and 00/100 Dollars
($500,000.00) of the Borrower (other than with respect to the Obligations) may
accelerate such Obligations.

 

(vii)         Any act by, or against, any Borrower, or its
property or assets, which act constitutes the application for, consent to, or
sufferance of the appointment of a receiver, trustee or other person, pursuant
to court action or otherwise, over all, or any substantial part of such
Borrower’s property, provided that such Borrower shall have sixty (60) days to
terminate, discharge or bond-over any involuntary proceeding under this Section
16(a)(vii).

 

(viii)        The general assignment for the benefit of the
creditors of any Borrower, or the occurrence of any other voluntary or
involuntary liquidation; the failure by any Borrower to generally pay the debts
of such Borrower as they mature; adjudication of bankruptcy or insolvency
relative to any Borrower; the entry of an order for relief or similar order
with respect to any Borrower in any voluntary proceeding pursuant to Title 11
of the United States Code entitled “Bankruptcy” (hereinafter the “Bankruptcy Code”) or any other federal
Bankruptcy law; the filing of any complaint, application, or petition by or
against any such Borrower initiating any matter in which such Borrower is or
may be granted any relief from the debts of such Borrower pursuant to the
Bankruptcy Code or any other insolvency statute or procedure; the calling or
sufferance of a meeting of creditors of such Borrower; the meeting by any
Borrower of a formal or informal creditor’s committee; the offering by or
entering into by any Borrower of any composition, extension or any other
arrangement seeking relief or extension for

 

63

 

the debts of any Borrower, or
the initiation of any other judicial or non-judicial proceeding or
agreement by, against or including the Borrowers which seeks or intends to
accomplish a reorganization or arrangement with creditors, provided however
that Borrowers shall have sixty (60) days to terminate, discharge or bond over
any involuntary proceeding under this Section 16(a)(viii).

 

(ix)           Any attachment(s) or entry of any final
judgment(s) against any Borrower in excess of Two Hundred Fifty Thousand and
00/100 Dollars ($250,000.00), in the aggregate, in excess of applicable
approved insurance proceeds or uncontested third party indemnities, which
attachment(s) and/or judgment(s) are not satisfied or appealed from (with
execution or similar process stayed) within thirty (30) days of its entry.

 

(x)            The entry of any court order which enjoins,
restrains or in any way prevents the Borrowers from conducting all or any
substantial part of their business affairs in the ordinary course of business
for a period of thirty (30) consecutive days.

 

(xi)           [Reserved.]

 

(xii)          With respect to GT International, the
occurrence, after the Closing Date, of any Person or two or more Persons (other
than GT Holdings, the current members of GT Holdings, or any underwriter in
connection with consummating an initial public offering of GT International)
acting in concert acquiring by contract or otherwise, or entering into a
contract or agreement which upon consummation will result in its or their
acquisition of, control over equity interests representing thirty-five percent
(35%) or more of the combined voting entitled to vote in the election of
directors of GT International, provided however, that Lenders acknowledge and
consent to Borrowers’ plans for an initial public offering of GT International.
With respect to the Borrowers other than GT International, any direct change in
the ownership of the stock of the Borrowers from that existing at the execution
of this Agreement without the prior consent of the Agent, which consent will
not be unreasonably withheld, provided however, that in the event of an initial
public offering of GT International and the liquidation of GT Holdings, the
remaining Borrowers shall be owned 100% by GT International. Notwithstanding
the aforesaid, the Lenders consent to the initial public offering of stock of
GT International (an “IPO”), the
primary purpose of which is for the current majority shareholders of GT
Holdings to obtain partial liquidity for their investment in GT Holdings.

 

(xiii)         [Reserved.]

 

(xiv)        The occurrence of any material uninsured loss,
theft, damage or destruction to any material asset(s) of the Borrowers (taken
as a whole) which could reasonably be expected to result in a Material Adverse
Effect.

 

64

 

(xv)         Any act by or against, or relating to any Borrower
or its assets pursuant to which any creditor of any Borrower or reclaims or
repossesses all or a substantial portion of such Borrower’s assets.

 

(xvi)        Except with respect to the dissolution of GT
Holdings as contemplated herein, or to the extent otherwise expressly permitted
hereunder, the termination of existence, dissolution, or liquidation of any
Borrower.

 

(xvii)       This Agreement shall, at any time after its
execution and delivery and for any reason, cease (A) to create a valid and
perfected first priority security interest in and to the Collateral (other than
with respect to Collateral which in the aggregate is immaterial) purported to
be subject to this Agreement; or (B) to be in full force and effect or shall be
declared null and void, or the validity or enforceability hereof shall be
contested by the Borrowers or any Guarantor of the Borrowers denies it has any
further liability or obligation hereunder.

 

(xviii)      Any of the following events occur or exist with
respect to the Borrowers or any ERISA Affiliate: (A) any “prohibited
transaction” (as defined in Section 406 of ERISA or Section 4975 of the
Internal Revenue Code) involving any Plan; (B) any Reportable Event shall occur
with respect to any Plan; (C) the filing under Section 4041 of ERISA of a notice
of intent to terminate any Plan or the termination of any Plan; (D) any event
or circumstance exists which constitutes grounds entitling the Pension Benefit
Guaranty Corporation (PBGC) to institute proceedings under Section 4042 of
ERISA for the termination of, or for the appointment of a trustee to
administer, any Plan, or the institution by the PBGC of any such proceedings;
(E) a withdrawal or partial withdrawal under Section 4203 or 4205 of ERISA from
a “multiemployer plan” (as defined in Section 4001(a)(3) of ERISA) (a “Multiemployer Plan”) or the reorganization,
insolvency, or termination of any Multiemployer Plan; and in each case above,
such event or condition, together with all other such events or conditions, if
any, could in the opinion of Agent could reasonably be expected to have a
Material Adverse Effect.

 

(xix)         [Reserved.]

 

(xx)          Borrowers fail at any time to maintain the
Minimum Deposit accounts with Agent as required pursuant to Section 11(c),
herein which such failure is not cured within three (3) Business Days from
notice by Agent to Borrower Agent of such Minimum Deposit shortfall.

 

(xxi)         There is a breach in the WC Sublimit which
remains uncured for a period of one (1) Business Day after notice from Agent to
Borrower Agent.

 

Upon the occurrence and during the continuation of an Event of Default,
Agent, at the option and direction of the Required Lenders may (i) without
notice to Borrowers, setoff Borrowers’ deposit accounts held as Collateral
hereunder with respect to

 

 

65

 

repayment of
the Obligations, and apply such amounts in each case with respect to repayment
of the Obligations in the order set forth in Section 11(a), herein, (ii)
declare any obligation Agent or Lenders may have hereunder with respecting
borrowings hereunder and its Commitment Amount, terminated, (iii) declare all
Obligations of Borrowers to be due and payable and proceed to enforce payment
of the Obligations, and (iv) to exercise any and all of the rights and remedies
afforded to Agent by the Uniform Commercial Code or under the terms of this
Agreement or otherwise. In addition, upon the occurrence and during the
continuance of an Event of Default, if Agent proceeds to enforce payment of the
Obligations at the option and direction of the Required Lenders, (i) Borrowers
shall be obligated to deliver to Agent cash collateral in an amount equal to
one hundred three (103%) percent of the aggregate amounts then undrawn on all
Outstanding Letters of Credit or acceptances issued or guaranteed by Agent or
its Affiliates for the account of the Borrowers plus all applicable fees and
expenses, or in the alternative, and (ii) Agent shall, at the direction of the
Lenders, either setoff Borrowers’ deposit accounts held as Collateral herunder
or (and regardless of whether the conditions precedent in this Agreement for a
Revolving Loan have been satisfied), the Lenders will cause a Revolving Loan to
be made in the aggregate amounts then undrawn on all Outstanding Letters of
Credit or acceptances issued or guaranteed by Agent or its Affiliates for the
account of the Borrowers plus all applicable fees and expenses, and Agent may
proceed to enforce payment of the same and to exercise all rights and remedies
afforded to Agent by the Uniform Commercial Code or under the terms of this
Agreement or otherwise. Upon the occurrence of, and during the continuance of,
an Event of Default, the Borrowers, as additional compensation to the Agent and
Lenders for their increased credit risk, shall pay interest on all outstanding
Obligations (other than Hedging Contracts) 
(including, without limitation, principal, whether or not past due, past
due interest and any other amounts past due under this Agreement) at a per
annum rate of two (2%) percent greater than, the rate of interest then
specified in Article 5 of this Agreement (the “Default Rate”). The Lenders acknowledge
that an Event of Default hereunder is not considered a termination event or
event of default under the Hedging Contracts.

 

(b)           Upon the filing of any
complaint, application, or petition by or against the Borrowers initiating any
matter in which the Borrowers are or may be granted any relief from the debts
of the Borrowers pursuant to the Bankruptcy Code, Agent’s and each Lender’s
obligations hereunder shall be terminated immediately, automatically, and
without notice, and all Obligations of the Borrowers then outstanding shall
become immediately due and payable without presentation, demand, or notice of
any kind to the Borrowers.

 

(c)           Any sale or other
disposition of the Collateral may be at public or private sale upon such terms
and in such manner as the Agent deems advisable, having due regard to
compliance with any statute or regulation which might affect, limit or apply to
the Agent’s disposition of the Collateral. Subject to the terms of any
applicable leases, the Agent may conduct any such sale or other disposition of
the Collateral upon the Borrowers’ premises. Unless the Collateral is
perishable or threatens to decline speedily in value, or is of a type
customarily sold on a recognized market (in which event the Agent shall provide
the Borrower Agent with such notice as may be practicable under the

 

66

 

circumstances),
the Agent shall give the Borrower Agent at least the greater of the minimum
notice required by law or ten (10) days prior written notice of the date, time
and place of any proposed public sale, and of the date after which any private
sale or other disposition of the Collateral may be made. The Agent may purchase
the Collateral, or any portion of it at any public sale.

 

(d)           If the Agent sells any
of the Collateral on credit, the Borrowers will be credited only with payments
actually made by the purchaser of such Collateral and received by the Agent. If
the purchaser fails to pay for the Collateral, the Agent may resell the
Collateral and the Borrowers shall be credited with the proceeds of the sale.

 

(e)           In connection with the
Agent’s exercise of the Agent’s rights after the occurrence and during the
continuance of an Event of Default, subject to the terms of any applicable
lease, the Agent may enter upon, occupy and use any premises owned or occupied
by any Borrower, and may exclude such Borrower from such premises or portion thereof
as may have been so entered upon, occupied, or used by the Agent. The Agent
shall not be required to remove any of the Collateral from any such premises
upon the Agent’s taking possession thereof, and may render any Collateral
unusable to the Borrowers. In no event shall the Agent be liable to any
Borrower for use or occupancy by the Agent of any premises pursuant to this
Agreement other than to the extent of the Agent’s (or its agent’s Officer’s,
director’s or employee’s) gross negligence, bad faith or willful misconduct.

 

(f)            Upon the occurrence
and during the continuance of any Event of Default, the Agent at the direction
of the Required Lenders may require the Borrowers to assemble the Collateral
and make it available to the Agent at the Borrowers’ sole risk and expense at a
place or places which are reasonably convenient to both the Agent and the
Borrowers.

 

17.           STANDARDS
FOR EXERCISING REMEDIES. To the extent that applicable law imposes
duties on Agent to exercise remedies in a commercially reasonable manner,
Borrowers acknowledge and agree that it is not commercially unreasonable for
Agent (a) to fail to incur expenses reasonably deemed significant by Agent to
prepare Collateral for disposition or otherwise to complete raw material or
work in process into finished goods or other finished products for disposition,
(b) to fail to obtain third party consents for access to Collateral to be
disposed of, or to obtain or, if not required by other law, to fail to obtain
governmental or third party consents for the collection or disposition of
Collateral to be collected or disposed of, (c) to fail to exercise collection
remedies against account debtors or other persons obligated on Collateral or to
remove Liens or encumbrances on or any adverse claims against Collateral, (d)
to exercise collection remedies against account debtors and other persons
obligated on Collateral directly or through the use of collection agencies and
other collection specialists, (e) to advertise dispositions of Collateral
through publications or media of general circulation, whether or not the
Collateral is of a specialized nature, (f) to contact other persons, whether or
not in the same business as the Borrowers, for expressions of interest in
acquiring all or any portion of the Collateral, (g) to hire one or more
professional auctioneers to assist in the disposition of Collateral, whether or
not the Collateral is of a specialized nature, (h) to dispose of the Collateral

 

67

 

by utilizing Internet sites
that provide for the auction of assets of the types included in the Collateral
or that have the reasonable capability of doing so, or that match buyers and
sellers of assets, (i) to dispose of assets in wholesale rather than retail
markets, (j) to disclaim disposition warranties specifically to disclaim any
warranties of title or the like, (k) to purchase insurance or credit
enhancements to insure Agent against risks of loss, collection or disposition
of Collateral or to provide to Agent a guaranteed return from the collection or
disposition of Collateral, or (l) to the extent deemed necessary by Agent, to
obtain the services of other brokers, investment bankers, consultants and other
professionals to assist Agent in the collection or disposition of any of the
Collateral. The Borrowers acknowledge that the purpose of this section is to
provide non-exhaustive indications of what actions or omissions by Agent would
not be commercially unreasonable in Agent’s exercise of remedies against the Collateral
and that other actions or omissions by Agent shall not be deemed commercially
unreasonable solely on account of not being indicated in this section. Without
limitation upon the foregoing, nothing contained in this section shall be
construed to grant any rights to Borrowers or to impose any duties on Agent
that would not have been granted or imposed by this Agreement or by applicable
law in the absence of this section.

 

18.           [RESERVED.]

 

19.           WAIVER OF
JURY TRIAL. TO THE EXTENT PERMITTED BY APPLICABLE LAW, EACH PARTY TO
THIS AGREEMENT HEREBY EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM,
DEMAND, ACTION OR CAUSE OF ACTION (A) ARISING UNDER THIS AGREEMENT OR ANY OTHER
INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH,
OR (B) IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF
THE PARTIES HERETO OR ANY OF THEM WITH RESPECT TO THIS AGREEMENT OR ANY OTHER
INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH,
OR THE TRANSACTIONS RELATED HERETO OR THERETO IN EACH CASE WHETHER NOW EXISTING
OR HEREAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT OR TORT OR OTHERWISE AND
EACH PARTY HEREBY CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF
ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY, AND THAT ANY PARTY TO
THIS AGREEMENT MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION WITH
ANY COURT AS WRITTEN EVIDENCE OF THE CONSENTS OF THE PARTIES HERETO TO THE
WAIVER OF THEIR RIGHT TO TRIAL BY JURY. The Borrowers hereby certify that
neither Agent or any Lender nor any of its representatives, agents or counsel
has represented, expressly or otherwise, that Agent would not, in the event of
any such suit, action or proceeding, seek to enforce this waiver of right to
trial by jury. The Borrowers acknowledges that Agent and each Lender has been
induced to enter into this Agreement by, among other things, this waiver. The
Borrowers acknowledge that it has read the provisions of this Agreement and in
particular, this section; has consulted legal counsel; understands the right it
is granting in this Agreement and is waiving in this section in particular; and
makes the above waiver knowingly, voluntarily and intentionally.

 

68

 

20.           CONSENT TO
JURISDICTION. Borrowers and Agent and each Lender agree that any
action or proceeding to enforce or arising out of this Agreement may be
commenced in any court of the State of New Hampshire sitting in the counties of
Hillsborough or Cheshire or in the District Court of the United States for the
District of New Hampshire, and to the extent permitted by applicable law, the
Borrowers waive personal service of process and agrees that a summons and
complaint commencing an action or proceeding in any such court shall be
properly served and confer personal jurisdiction if served by registered or
certified mail or recognized overnight courier to Borrower Agent, or as
otherwise provided by the laws of the State of New Hampshire or the United
States of America.

 

21.           TERMINATION.

 

(a)          Unless renewed in
writing, this Agreement shall terminate on March 31, 2010 (the “Termination Date”), and all Obligations
(including obligations to cash collateralize any outstanding Letters of Credit
as set forth in Section 16(a) hereto, provided in any event, however,
that any such outstanding Letters of Credit shall mature not more than six
months following the Termination Date hereunder, as the same may be extended as
provided herein) shall be due and payable in full, to the extent permitted by
applicable law, without presentation, demand, or further notice of any kind,
whether or not all or any part of the Obligations is otherwise due and payable
pursuant to the agreement or instrument evidencing same. At the Borrowers’
request to be made annually not later than October 1, the Lenders may extend
the Termination Date on an annual basis in their sole discretion, such that
Borrowers may maintain a three (3) year facility at all times. In the event
that the Lenders grant such extension in any year, the Agent shall provide
written notice of such extension not later than March 31, but in any event as
soon after receipt of fiscal year end statements, management letter and
projections, as is practicable for the Lenders.

 

Agent, upon
instruction of the Required Lenders, may terminate this Agreement immediately
and without notice upon the occurrence of an Event of Default. Notwithstanding
the foregoing or anything in this Agreement or elsewhere to the contrary, the
security interest, Agent’s and Lenders’ rights and remedies hereunder and
Borrowers’ obligations and liabilities hereunder shall survive any termination
of this Agreement and shall remain in full force and effect until all of the
Obligations outstanding, or contracted or committed for (whether or not
outstanding), shall be finally and irrevocably paid in full.

 

Upon (a) the
disposition of any Collateral in accordance with the terms of this Agreement
(including application of proceeds therefrom as provided herein) or (b) final
and irrevocable payment in full of the Obligations (other than the Hedging
Contracts), the security interests granted herein shall automatically terminate
with respect to (i) such Collateral (in the case of clause (a)) or (ii) all
Collateral (in the case of clause (b)). Upon such payment in full of the
Obligations, Agent will, at Borrowers’ sole expense, promptly deliver to
Borrower Agent, all pledged Collateral held by the Agent hereunder, and execute
and deliver to Borrower Agent such documents as Borrower Agent shall reasonably
request to evidence such termination; provided, further, the Agent and Lenders
agree that, upon notice from Borrower Agent, the Agent shall deliver the
pledged stock certificates evidencing GT Holdings’ equity interest in GT
International five (5) days prior to any permitted IPO; provided, further, that
in the event that the

 

69

 

IPO does not
occur within ten (10) days of the date of such delivery, Borrowers shall
immediately return such stock certificates to the Agent.

 

(b)          In the event that Agent
and the Lenders continue to make Revolving Loans hereunder after the
Termination Date without a written extension of such Termination Date or after
the occurrence of an Event of Default, all such Revolving Loans: (i) shall be
made in the sole and absolute discretion of Agent and all of the Lenders; and
(ii) shall, together with all other Obligations, be payable thereafter ON DEMAND.

 

22.           JOINT AND
SEVERAL LIABILITY

 

(a)           Each Borrower is
accepting joint and several liability under this Agreement in consideration of
the financial accommodations to be provided by Agent and each Lender under this
Agreement, for the mutual benefit, directly and indirectly, of each Borrower
and in consideration of the undertakings of each other Borrower to accept joint
and several liability for the Obligations of each Borrower to the Agent and
each Lender and in consideration and furtherance of the corporate purpose of
the Borrowers’ affiliated corporate relationship and structure.

 

(b)           Each Borrower,
jointly and severally, hereby irrevocably and unconditionally accepts, not
merely as a surety but also as a co-debtor, joint and several liability with
each other Borrower, with respect to the payment and performance of all of the
Obligations of each Borrower to the Lenders under this Agreement (including,
without limitation, any Obligations arising under this section), it being the
intention of the parties hereto that all the Obligations of each Borrower to
the Lenders under this Agreement shall be the joint and several Obligations of
each of the Borrowers without preferences or distinction among them.

 

(c)           If and to the
extent that any of the Borrowers shall fail to make any payment with respect to
any of the Obligations of each Borrower to the Lenders under this Agreement, as
and when due or to perform any of such Obligations in accordance with the terms
thereof, then in each such event the other Borrower, under this Agreement will
make such payment with respect to, or perform, such Obligation.

 

(d)           The Obligations of
each Borrower under the provisions of this section constitute full recourse
Obligations of each Borrower enforceable (except as enforceability may be
limited by applicable bankruptcy, insolvency, reorganization, moratorium or
similar laws affecting the enforcement of creditors’ rights generally and by
general equitable principles (whether enforcement is sought by proceedings in
equity or at law), against each such Borrower to the full extent of its
properties and assets, irrespective of the validity, regularity or
enforceability of this Agreement or any other circumstance whatsoever.

 

(e)           To the extent
permitted by applicable law, each Borrower hereby waives notice of acceptance
of its joint and several liability, notice of any loans made under this
Agreement, notice of any action at any time taken or omitted by Agent under or
in respect of any of the Obligations of each Borrower to the Lenders under this
Agreement, and, generally, to the extent permitted by applicable law, all
demands, notices and other formalities of every kind in

 

70

 

connection with this Agreement.
To the extent permitted by applicable law, each Borrower hereby assents to, and
waives notice of, any extension or postponement of the time for the payment of
any of the Obligations of each Borrower to the Lenders under this Agreement,
the acceptance of any payment of any of such Obligations, the acceptance of any
partial payment thereon, any waiver, consent or other action or acquiescence by
the Lenders at any time or times in respect of any default by any Borrower in
the performance or satisfaction of any term, covenant, condition or provision
of this Agreement, any and all other indulgences whatsoever by the Lenders in
respect of any of the Obligations of each Borrower to the Lenders under this
Agreement, and the taking, addition, substitution or release, in whole or in
part, at any time or times, of any security for any of such Obligations of each
Borrower to the Lenders or the addition, substitution or release, in whole or
in part, of any Borrower. Without limiting the generality of the foregoing, to
the extent permitted by applicable law, each Borrower assents to any other
action or delay in acting or failure to act on Agent’s part with respect to the
failure by any Borrower to comply with any of its respective Obligations,
including, without limitation, any failure strictly or diligently to assert any
right or to pursue any remedy or to comply fully with applicable laws or
regulations thereunder, which might, but for the provisions of this section,
afford grounds for terminating, discharging or relieving any Borrower, in whole
or in part, from any of its Obligations under this section, it being the
intention of each Borrower that, so long as any of the Obligations under this
Agreement remain unsatisfied, the Obligations of such Borrower under this
section shall not be discharged except by performance and then only to the
extent of such performance. To the extent permitted by applicable law, the
Obligations of each Borrower under this section shall not be diminished or
rendered unenforceable by any winding up, reorganization, arrangement,
liquidation, reconstruction or similar proceeding with respect to any other
Borrower or any Lender. The joint and several liability of each Borrower under
this Agreement shall continue in full force and effect notwithstanding any
absorption, merger, amalgamation or any other change whatsoever in the name,
membership, constitution or place of formation of any Borrower or Lender.

 

(f)            The provisions of
this section are made for the benefit of the Agent and the Lenders’ permitted
successors and assigns, and may be enforced by Agent for the benefit of the
Lenders in good faith from time to time against any or all of the Borrowers as
often as occasion therefor may arise and without requirement on Agent’s part
first to marshal any of its claims or to exercise any of its rights against any
Borrower or to exhaust any remedies available to Agent against any other
Borrower or to resort to any other source or means of obtaining payment of any
of the Obligations under this Agreement or to elect any other remedy. The
provisions of this section shall remain in effect until all of the Obligations
of each Borrower to the Lenders under this Agreement shall have been paid in
full or otherwise fully satisfied. If at any time, any payment, or any part
thereof, made in respect of any of such Obligations of each Borrower to the
Lenders, is rescinded or must otherwise be restored or returned by Bank upon
the insolvency, bankruptcy or reorganization of any Borrower, or otherwise, the
provisions of this section will forthwith be reinstated in effect, as though
such payment had not been made.

 

(g)           Each Borrower agrees
that it shall not exercise, and hereby expressly waives until full and final
payment of all Obligations to the Lenders: (i) any right to subrogation or
indemnification, and any other right to payment from or reimbursement by any
other Borrower, in connection with or as a consequence of any payment made by
any Borrower to the

 

71

 

Lenders, (ii) any right to
enforce any right or remedy which the Lenders may have or may hereafter have
against any other Borrower, and (iii) any benefit of, and any right to
participate in (A) any collateral now or hereafter held by the Lenders, or (B)
any payment to the Lenders by, or collection by Agent from any other Borrower. The
provisions of this paragraph are made for the express benefit of each Borrower
as well as the Lenders, and may be enforced independently by each Borrower or
any successor in interest to each Borrower.

 

23.           REGARDING
AGENT.

 

(a)          Appointment. Each
Lender hereby designates Citizens Bank New Hampshire to act as Agent for such
Lender under this Agreement and the Other Documents. Each Lender hereby
irrevocably authorizes Agent to take such action on its behalf under the
provisions of this Agreement and the Other Documents and to exercise such
powers and to perform such duties hereunder and thereunder as are specifically
delegated to or required of Agent by the terms hereof and thereof and such
other powers as are reasonably incidental thereto and Agent shall hold all
Collateral, payments of principal and interest, fees (except the fees set forth
in the herein that are not payable to all Lenders), charges and collections
(without giving effect to any collection days) received pursuant to this
Agreement, for the ratable benefit of Lenders. Agent may perform any of its
duties hereunder by or through its agents or employees. As to any matters not
expressly provided for by this Agreement (including without limitation,
collection of the Notes) Agent shall not be required to exercise any discretion
or take any action, but shall be required to act or to refrain from acting (and
shall be fully protected in so acting or refraining from acting) upon the
instructions of the Required Lenders, and such instructions shall be binding;
provided, however, that Agent shall not be required to take any action which
exposes Agent to liability or which is contrary to this Agreement or the Other
Documents or applicable law unless Agent is furnished with an indemnification
reasonably satisfactory to Agent with respect thereto.

 

(b)          Nature of Duties.
Agent shall have no duties or responsibilities except those expressly set forth
in this Agreement and the Other Documents. Neither Agent nor any of its
officers, directors, employees or agents shall be (i) liable for any action
taken or omitted by them as such hereunder or in connection herewith, unless
caused by their gross (not mere) negligence, willful misconduct, bad faith or
material breach of this Agreement, or (ii) responsible in any manner for any
recitals, statements, representations or warranties made by Borrowers or any
officer thereof contained in this Agreement, or in any of the Other Documents
or in any certificate, report, statement or other document referred to or
provided for in, or received by Agent under or in connection with, this
Agreement or any of the Other Documents or for the value, validity,
effectiveness, genuineness, due execution, enforceability or sufficiency of
this Agreement, or any of the Other Documents or for any failure of Borrowers
to perform its obligations hereunder. Agent shall not be under any obligation
to any Lender to ascertain or to inquire as to the observance or performance of
any of the agreements contained in, or conditions of, this Agreement or any of
the Other Documents, or to inspect the properties, books or records of
Borrowers. The duties of Agent as respects the Advances to Borrowers shall be
mechanical and administrative in nature; Agent shall not have by reason of this
Agreement a fiduciary relationship in respect of any Lender; and nothing in
this Agreement, expressed or implied, is

 

72

 

intended to or
shall be so construed as to impose upon Agent any obligations in respect of
this Agreement except as expressly set forth herein.

 

(c)          Lack of Reliance on
Agent. Independently and without reliance upon Agent or any other Lender,
each Lender has made and shall continue to make (i) its own independent
investigation of the financial condition and affairs of Borrowers in connection
with the making and the continuance of the Revolving Loans hereunder and the
taking or not taking of any action in connection herewith, and (ii) its own
appraisal of the creditworthiness of Borrowers. Agent shall have no duty or
responsibility, either initially or on a continuing basis, to provide any
Lender with any credit or other information with respect thereto, whether
coming into its possession before making of the Revolving Loans or at any time
or times thereafter except as shall be provided by Borrowers pursuant to the
terms hereof. Agent shall not be responsible to any Lender for any recitals,
statements, information, representations or warranties herein or in any
agreement, document, certificate or a statement delivered in connection with or
for the execution, effectiveness, genuineness, validity, enforceability,
collectibility or sufficiency of this Agreement or any Other Document, or of
the financial condition of Borrowers, or be required to make any inquiry
concerning either the performance or observance of any of the terms, provisions
or conditions of this Agreement, the Notes, the Other Documents or the
financial condition of Borrowers, or the existence of any Event of Default or
any Default.

 

(d)           Resignation
and Removal   Agent may resign
on sixty (60) days’ written notice to each of Lenders and Borrower Agent and
upon such resignation, the Required Lenders will promptly designate a successor
Agent reasonably satisfactory to Borrowers. The Required Lenders may remove the
Agent from its capacity as Agent for failure to perform its material
obligations under this Agreement provided that the Required Lenders shall have
given prior written notice to the Agent of its failure to perform any of its
material obligations under this Agreement and such failure shall not have been
cured within thirty (30) calendar days after receipt of notice of such failure
(or such failure cannot reasonably be cured within such thirty (30) day period,
then within such longer period of time as may be necessary to complete such
cure so long as Agent commences such cure within such thirty (30) day period
and thereafter diligently pursues such cure to completion). Upon any such
resignation or removal, the Required Lenders shall have the right to appoint as
a successor Agent which shall be any Lender or any financial institution whose
senior debt obligations are rated not less than “A2” or its equivalent by Moody’s
or not less than “A2” or its equivalent by S&P and which has a net worth of
not less than $500,000,000. Unless an Event of Default shall have occurred and
be continuing, such successor Agent shall be reasonably acceptable to the
Borrower Agent. If no successor Agent shall have been so appointed by the
Required Lenders and shall have accepted such appointment within 30 days after
the retiring Agent’s giving of notice of resignation or its removal, then the
retiring or removed Agent may, on behalf of the Lenders, appoint a successor
Agent, which shall be any Lender or any financial institution whose senior debt
obligations are rated not less than “A2” or its equivalent by Moody’s or not
less than “A” or its equivalent by S&P and which has a net worth of not
less than $500,000,000. Unless an Event of Default shall have occurred and be
continuing, such successor Agent shall be reasonably acceptable to the Borrower
Agent. Upon the acceptance of any appointment as Agent hereunder by a successor
Agent, such successor Agent shall thereupon succeed to and become vested with
all the rights, powers, privileges and duties of the retiring or removed Agent,
and the retiring or removed Agent shall be discharged

 

73

 

from its duties and obligations hereunder as Agent thereafter arising. After
any retiring or removed Agent’s resignation or removal, the provisions of this
Agreement and the Other Documents shall continue in effect for its benefit in
respect of any actions taken or omitted to be taken by it while it was acting
as Agent.

 

Any such successor Agent shall succeed to the rights, powers and duties
of Agent, and the term “Agent”
shall mean such successor agent effective upon its appointment, and the former
Agent’s rights, powers and duties as Agent shall be terminated, without any
other or further act or deed on the part of such former Agent. After any Agent’s
resignation as Agent, the provisions of this Article 23 shall inure to
its benefit as to any actions taken or omitted to be taken by it while it was
Agent under this Agreement.

 

(e)           Certain Rights of
Agent. If Agent shall request instructions from Lenders with respect to any
act or action (including failure to act) in connection with this Agreement or
any Other Document, Agent shall be entitled to refrain from such act or taking
such action unless and until Agent shall have received instructions from the
Required Lenders; and Agent shall not incur liability to any Lender or
Borrowers or any other Person by reason of so refraining. Without limiting the
foregoing, Lenders shall not have any right of action whatsoever against Agent
as a result of its acting or refraining from acting hereunder in accordance
with the instructions of the Required Lenders.

 

(f)           Reliance. Agent
shall be entitled to rely, and shall be fully protected in relying, upon any
note, writing, resolution, notice, statement, certificate, telex, teletype or
telecopier message, cablegram, order or other document or telephone message
believed by it in good faith to be genuine and correct and to have been signed,
sent or made by the proper person or entity, and, with respect to all legal matters
pertaining to this Agreement and the Other Documents and its duties hereunder,
upon advice of counsel selected by it. Agent may employ agents and
attorneys-in-fact and shall not be liable for the default or misconduct of any
such agents or attorneys-in-fact selected by Agent in good faith with
commercially reasonable care.

 

(g)          Notice of Default.
Agent shall not be deemed to have knowledge or notice of the occurrence of any
Event of Default hereunder or under the Other Documents, unless Agent has
received notice from a Lender or Borrowers referring to in this Agreement or
the Other Documents, describing such Event of Default and stating that such
notice is a “notice of default”. In the event that Agent receives such a
notice, Agent shall give notice thereof to Lenders. Agent shall take such
action with respect to such Event of Default as shall be reasonably directed by
the Required Lenders; provided, that, unless and until Agent shall have
received such directions, Agent may (but shall not be obligated to) take such
action, or refrain from taking such action, with respect to such Event of
Default as it shall deem advisable in the best interests of Lenders.

 

(h)          Indemnification. To
the extent Agent is not reimbursed by Borrowers, each Lender will reimburse and
indemnify Agent in proportion to its Commitment Percentage, from and against
any and all actual liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, out-of-pocket expenses or disbursements of
any kind or nature whatsoever which may be imposed on, incurred by or asserted
against Agent in performing its duties hereunder, or in any way relating to or
arising out of this Agreement or any Other

 

74

 

Document;
provided that, Lenders shall not be liable for any portion of such liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements resulting from Agent’s or its agent’s employee’s
director’s or advisor’s gross (not mere) negligence, willful misconduct, bad
faith or material breach of this Agreement or any Other Document.

 

(i)           Agent in its
Individual Capacity. With respect to the obligation of Agent to lend under
this Agreement, the Revolving Loans made by it shall have the same rights and
powers hereunder as any other Lender and as if it were not performing the
duties as Agent specified herein; and the term “Lender” or any similar term
shall, unless the context clearly otherwise indicates, include Agent in its
individual capacity as a Lender. Agent may engage in business with Borrowers as
if it were not performing the duties specified herein, and may accept fees and
other consideration from Borrowers for services in connection with this
Agreement or otherwise without having to account for the same to Lenders.

 

(j)           Delivery of
Documents. To the extent Agent receives “Borrowers’ Reports” required under
Article 13 of this Agreement, Agent will promptly furnish such documents
and information to Lenders.

 

(k)          Borrowers’
Undertaking to Agent. Without prejudice to its obligations to Lenders under
the other provisions of this Agreement, Borrowers hereby undertake with Agent
to pay to Agent from time to time on demand, or otherwise when due hereunder,
all amounts from time to time due and payable by it for the account of Agent or
Lenders or any of them pursuant to this Agreement to the extent not already
paid. Any payment made pursuant to any such demand shall pro tanto satisfy the
relevant Borrower’s obligations to make payments for the account of Lenders or
the relevant one or more of them pursuant to this Agreement.

 

(l)           No Reliance on Agent’s
Customer Identification Program. Each Lender acknowledges and agrees that
neither such Lender, nor any of its Affiliates, participants or assignees, may
rely on the Agent to carry out such Lender’s, Affiliate’s, participant’s or
assignee’s customer identification program, or other obligations required or
imposed under or pursuant to the USA Patriot Act or the regulations thereunder,
including the regulations contained in 31 CFR 103.121 (as hereafter amended or
replaced, the “CIP Regulations”),
or any other Anti-Terrorism Law, including any programs involving any of the
following items relating to or in connection with any of Borrowers, any
Guarantor, their Affiliates or their agents, this Agreement, the Other
Documents or the transactions hereunder or contemplated hereby:  (1) any identity verification procedures, (2)
any recordkeeping, (3) comparisons with government lists, applicable (4)
customer notices or (5) other procedures required under the CIP Regulations or
other laws.

 

(m)         USA Patriot Act
Certifications From Banks and Participants. Each Lender or assignee or
participant of such that is not incorporated under the laws of the United
States of America or a state thereof (and is not excepted from the
certification requirement contained in Section 313 of the USA Patriot Act and
the applicable regulations because it is both (i) an Affiliate of a depository
institution or foreign bank that maintains a physical presence in the United
States or foreign county, and (ii) subject to supervision by a banking
authority regulating

 

75

 

such
affiliated depository institution or foreign bank) shall deliver to the Agent
the certification, or, if applicable, recertification, certifying that such
Lender, Purchasing Lender or Transferee is not a “shell” and certifying to
other matters as required by Section 313 of the USA Patriot Act and the
applicable regulations: (1) within 10 days after the Closing Date, and (2) as
such other times as are required under the USA Patriot Act.

 

(n)          Required Lenders and
Unanimous Consent. The Required Lenders, Agent with the consent in writing
of the Required Lenders, and Borrowers may, subject to the provisions of this
Agreement, from time to time enter into written supplemental agreements,
amendments to or waivers of the provisions of this Agreement or the Other
Documents executed by any Borrower, for the purpose of adding or deleting any
provisions or otherwise changing, varying or waiving in any manner the rights
of Lenders, Agent or any Borrower thereunder or the conditions, provisions or
terms thereof of waiving any Event of Default thereunder, but only to the
extent specified in such written agreements; provided, however, that no such
supplemental agreement, amendment, waiver or other modification to this
Agreement or the Other Documents shall, without the following consent:

 

(i)            increase the
Commitment Percentage, the Commitment Amount of any Lender or the Credit Limit
of each Lender without the consent of each Lender directly affected thereby;

 

(ii)           extend the maturity of
any Note or the due date for any amount payable hereunder, or decrease the rate
of interest or reduce any fee payable by Borrowers to Lenders pursuant to this
Agreement (other than as a result of any waiver or cure of any Event of
Default) without the unanimous consent of all Lenders.

 

(iii)          alter the Commitment
Percentage of the Required Lenders or alter, amend or modify this Subsection
23(m), without the unanimous consent of all Lenders;

 

(iv)          release any Collateral
(other than in accordance with the provisions of this Agreement) without the
unanimous consent of all Lenders;

 

(v)           change the rights and
duties of Agent without the consent of the Agent and the Required Lenders;

 

(vi)          increase the WC
Sub-Limit without the unanimous consent of all Lenders; or

 

(vii)         change the financial
covenants contained in Article 15 hereof without the consent of the
Required Lenders.

 

Any such supplemental agreement
shall apply equally to each Lender and shall be binding upon Borrowers, Lenders
and Agent and all future holders of the Obligations. In the case of any waiver,
Borrowers, Agent and Lenders shall be restored to their former positions and
rights, and any Event of Default waived shall be deemed to be cured and not
continuing, but no waiver of a specific Event of Default shall extend to any
subsequent

 

76

 

Event of
Default (whether or not the subsequent Event of Default is the same as the
Event of Default which was waived), or impair any right consequent thereon.

 

Notwithstanding
the foregoing, if the Agent and the Borrowers shall have jointly identified an
obvious error or any error or omission of a technical or immaterial nature, in
each case, in any provision of this Agreement or the Other Documents, then the
Agent and the Borrowers shall be permitted to amend such provision and such
amendment shall become effective without any further action or consent of any
other party to this Agreement or the Other Documents if the same is not
objected to in writing by the Required Lenders within five (5) Business Days
following receipt of notice thereof.

 

(o)           Replacement of
Holdout Lender.

 

(i)            If any action to be
taken by the Lenders hereunder requires the unanimous consent, authorization,
or agreement, of all Lenders, and a Lender (“Holdout
Lender”) fails to give its consent, authorization or agreement, then
Agent, upon at least 5 Business Days prior irrevocable notice to the Holdout
Lender, may, or upon Borrowers’ request, and otherwise in compliance with the
terms of this Section 23(o), permanently replace the Holdout Lender with
one or more substitute lenders (each, a “Replacement
Lender”), and the Holdout Lender shall have no right to refuse to be
replaced hereunder. Any notice hereunder to replace the Holdout Lender shall
specify an effective date for such replacement, which date shall not be later
than 15 Business Days after the date such notice is given.

 

(ii)           Prior to the effective
date of such replacement, the Holdout Lender and each Replacement Lender shall
execute and deliver an Assignment and Acceptance Agreement, subject only to the
Holdout Lender being repaid its share of the outstanding obligations (including
an assumption of its pro rata share of the risk participation liability)
without any premium or penalty of any kind whatsoever. If the Holdout Lender
shall refuse or fail to execute and deliver any such Assignment and Acceptance
Agreement prior to the effective date of such replacement, the Holdout Lender
shall be deemed to have executed and delivered such Assignment and Acceptance
Agreement. Until such time as the Replacement Lender(s) shall have acquired all
of the Obligations, the Commitments, and the other rights and obligations of
the Holdout Lender hereunder and under the other Loan Documents, the Holdout
Lender shall remain obligated to make the Holdout Lender’s pro rata share of
Loans.

 

(iii)          In the event that no new
Lender is located to purchase the Holdout Lender’s Commitment, then Borrower
Agent shall have the option after receipt of written notice from Agent to
Borrower Agent that no new Lender has been obtained, to terminate the
Commitment of the Holdout Lender. Borrowers agree to pay all reasonabe costs or
out-of-pocket expenses incurred by any Lender in connection with this Section
23(o) including without limitation, all principal and accrued and unpaid
interest or fees, including any accrued and unbilled LIBOR Rate Loan Prepayment
Fees, if any.

 

77

 

24.
ASSIGNMENT AND PARTICIPATION.

 

(a)           Conditions to
Assignment by Lenders. Except as provided herein, each Lender may assign to
one or more banks or other entities all or a portion of its interests, rights
and obligations under this Agreement (including all or a portion of its
Commitment Percentage and Commitment and the same portion of the Loans at the
time owing to it and the Notes held by it); provided that: (a) the Agent and,
so long as no Event of Default exists hereunder, the Borrower Agent shall have
each given its prior written consent to such assignment, which consent shall
not be unreasonably withheld or delayed (provided that (i) such consent shall
not be required for any assignment to another Lender who was not admitted
pursuant to a waiver of clause (e) below, to a lender which is and remains
under common control with the assigning Lender or to a wholly-owned Subsidiary
of such Lender, provided that such assignee shall remain a wholly-owned
Subsidiary of such Lender, and (ii) the consent of Agent shall not be required
if an Event of Default exists and is continuing so long as the assignee is an
institutional lender), (b) each such assignment shall be of a constant, and not
a varying, percentage of all the assigning Lender’s rights and obligations
under this Agreement, (c) the parties to such assignment shall execute and
deliver to the Agent, for recording in the Register (as hereinafter defined) an
Assignment and Acceptance Agreement in substantially the form of Exhibit 5 annexed hereto, together with
any Notes subject to such assignment, (d) in no event shall any voting, consent
or approval rights of a Lender be assigned to any Person controlling,
controlled by or under common control with, or which is not otherwise free from
influence or control by, the Borrowers (other than a Sponsor Affiliated Lender)
which rights shall instead be allocated pro rata among the other remaining
Lenders, (e) if such assignee is to become a Lender, such assignee shall have a
net worth as of the date of such assignment of not less than $200,000,000,
unless waived by the Agent and the Borrower Agent, (f) such assignee shall
acquire an interest in the Loans of not less than $5,000,000 (or if less, the
remaining Loans of the assignor), unless waived by the Agent, and so long as no
Event of Default exists hereunder, the Borrowers, (g) such assignee shall pay
the Registration Fee to Agent, and (h) such assignee shall be subject to the terms
of any intercreditor agreement among the Lenders and the Agent. Any assignee
satisfying the terms and conditions of this Section 24(a) shall be
referred to as an “Eligible Assignee”
Upon execution, delivery, acceptance and recording of such Assignment and
Acceptance Agreement, (i) the assignee thereunder shall be a party hereto and
all other Loan Documents executed by the Lenders and have the rights and
obligations of a Lender hereunder, (ii) the assigning Lender shall, upon
payment to the Agent of the registration fee referred to in Section 24(b)
be released from its obligations under this Agreement arising after the
effective date of such assignment with respect to the assigned portion of its
interests, rights and obligations under this Agreement, and (iii) the Agent may
unilaterally amend Schedule “C”
to reflect such assignment. In connection with each assignment, the assignee
shall represent and warrant to the Agent, the assignor, each other Lender, and
the Borrowers as to whether such assignee satisfies the definition of Eligible
Assignee.

 

(b)           Register. The
Agent shall maintain on behalf of the Borrowers a copy of each assignment
delivered to it and a register or similar list (the “Register”) for the recordation of the names and addresses of
the Lenders and the Commitment Percentages

 

78

 

of and
principal amount of the Loans owing to the Lenders from time to time. The
entries in the Register shall be conclusive, in the absence of manifest error,
and the Borrowers, the Agent and the Lenders may treat each Person whose name
is recorded in the Register as a Lender hereunder for all purposes of this
Agreement. The Register shall be available for inspection by the Borrowers and
the Lenders at any reasonable time and from time to time upon reasonable prior
notice. Upon each such recordation, the assigning Lender agrees to pay to the
Agent a registration fee in the sum of $5,000 (the “Registration Fee”) (provided that with respect to any
assignment by a Lender to a Subsidiary as provided herein, the assigning Lender
shall pay to Agent its reasonable expenses incurred in connection with such
assignment in lieu of such registration fee).

 

(c)           New Notes. Upon
its receipt of an Assignment and Acceptance Agreement executed by the parties
to such assignment, together with each Note subject to such assignment, the
Agent shall record the information contained therein in the Register. Within
five (5) Business Days after receipt of notice of such assignment from Agent,
the Borrowers, at Agent’s expense, shall execute and deliver to the Agent, in
exchange for each surrendered Note, a new Note to the order of such assignee in
an amount equal to the amount assigned to such assignee pursuant to such
Assignment and Acceptance Agreement and, if the assigning Lender has retained
some portion of its obligations hereunder, a new Note to the order of the
assigning Lender in an amount equal to the amount retained by it hereunder. Such
new Notes shall provide that they are replacements for the surrendered Notes,
shall be in an aggregate principal amount equal to the aggregate principal
amount of the surrendered Notes, shall be dated the effective date of such
Assignment and Acceptance Agreement and shall otherwise be in substantially the
form of the assigned Notes. The surrendered Notes shall be canceled and
returned to the Borrower Agent.

 

(d)           Participations. Each
Lender may sell participations to one or more Lenders or other entities in all
or a portion of such Lender’s rights and obligations under this Agreement and
the Other Documents; provided that (a) any such sale or participation shall not
affect the rights and duties of the selling Lender hereunder, (b) such
participation shall not entitle such participant to any rights or privileges
under this Agreement or any Other Documents, (c) such participation shall not
entitle the participant to the right to approve waivers, amendments or
modifications, (d) such participant shall have no direct rights against the
Borrowers, (e) such sale is effected in accordance with all applicable laws,
and (f) such participant shall not be a Person controlling, controlled by or
under common control with, or which is not otherwise free from influence or
control by any of the Borrowers (other than Sponsor Affiliated Lenders). Any
Lender which sells a participation shall promptly notify the Agent of such sale
and the identity of the purchaser of such interest.

 

(e)           Pledge by Lender.
Any Lender may at any time pledge all or any portion of its interest and rights
under this Agreement (including all or any portion of its Note) to any of the
twelve Federal Reserve Banks organized under §4 of the Federal Reserve Act, 12
U.S.C. §341 or to such other Person as the Agent may approve to secure
obligations of

 

79

 

such lenders. No
such pledge or the enforcement thereof shall release the pledgor Lender from
its obligations hereunder or under any of the other Loan Documents.

 

(f)            No Assignment by
Borrowers. No Borrower shall assign or transfer any of its rights or
obligations under this Agreement without the prior written consent of each of
the Lenders and any purported assignment without such consent shall be null and
void. No consent to an assignment by Agent shall release any Borrower from its
Obligations. Agent may assign this Agreement and its rights and duties
hereunder with prior consent from Borrowers (not to be unreasonably withheld,
conditioned or delayed), provided however, that Borrowers shall have no such
consent or approval rights at any time while any Event of Default exists and is
continuing.

 

(g)           Disclosure. Borrowers
agree to promptly cooperate with any Lender in connection with any proposed
assignment or participation of all or any portion of its Commitment in accordance
with the terms herein. Each of the Lenders and the Agent acknowledges and
agrees for itself that information provided and to be provided by the Borrowers
contains confidential non-public information related to the Borrowers and
agrees to keep any information delivered or made available by the Borrowers to
it confidential from anyone other than its employees, officers, attorneys and
other advisors who are engaged in evaluating, administering or syndicating the
Loan or rendering advice in connection therewith, and each of Agent and the
Lenders agrees not to trade in the Borrowers’ securities (all of whom shall be
bound by this Section 24(g)) in violation of Section 10(b) of the
Securities Exchange Act of 1934, as amended, or Rule 10b-5 or any other federal
securities laws or regulations thereunder, provided that nothing herein shall
prevent any of the foregoing Persons from disclosing such information (i) to
any potential assignees or participants who have agreed to maintain the
confidentiality of such information in the manner and to the extent provided in
this Section 24(g), (ii) upon the order of any court or administrative
agency or upon the request of any administrative agency or authority having
jurisdiction over any of the foregoing Persons or such potential assignees or
participants, (iii) to the extent that such information has been publicly
disclosed other than as a result of a disclosure by the foregoing Persons, (iv)
otherwise as required by law or (v) to the extent necessary to enforce the Loan
Documents, provided that, with respect to any Lender disclosing information
pursuant to the preceding clause (ii) that would result in such information
becoming publicly available, such Lender agrees to use its commercially
reasonable efforts to furnish the Borrower Agent with prior notice of such
disclosure and an opportunity to contest such disclosure as long as furnishing
such notice and opportunity is practicable and would not result in the Lenders’
violation of the requirements of law. In addition, the Lenders may make
disclosure of such information to any contractual counterparty in swap
agreements or such contractual counterparty’s professional advisors (so long as
such contractual counterparty or professional advisors to such contractual
counterparty agree to be bound by the provisions of this Section 24(g).

 

(h)           Change of Lending
Office. Each Lender agrees that, upon the occurrence of any event giving
rise to the operation of Section 5(VI) or Section 10 with respect
to such Lender, it will, if requested by the Borrower Agent, use reasonable
efforts (subject to overall policy considerations of such Lender) to designate
another lending office for any Revolving Loans affected by such event with the
object of avoiding the consequences of

 

80

 

such event;
provided that such designation would not subject such Lender to any
un-reimbursed cost or expense and would not otherwise be materially
disadvantageous to such Lender; provided, however, that the Borrowers shall not
be liable for such costs and expense of a Lender requesting compensation if (i)
such Lender becomes a party to this Agreement on a date after the Closing Date,
and (ii) the relevant change in law under Section 5(VI) or Section
10 occurs on a date prior the date such Lender becomes a party hereto, and
provided, further, that nothing in this Section shall affect or postpone any of
the obligations of the Borrowers or the rights of any Lender pursuant to Section
5(VI) or Section 10. The Borrowers hereby agree to pay all
reasonable costs and out-of-pocket expense incurred by any Lender in connection
with any such designation or assignment within five (5) Business Days written
notice from Agent. A certificate setting forth such costs and expenses
submitted by such Lender to the Borrower Agent shall be conclusive absent
manifest error.

 

25.           MISCELLANEOUS.

 

(a)          No delay or omission on the part of
Agent in exercising any rights shall operate as a waiver of such right or any
other right. 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 Agent’s and each
Lender’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.

 

(b)          Agent is authorized to make LIBOR
Loans or Prime Rate Loans under the terms of this Agreement upon the request,
either written or oral, in the name of the Borrowers by any of the following
named person, or persons, from time to time, holding the following offices of
the Borrowers, President, Treasurer, controller and such other officers of any
Borrower and authorized signatories as may from time to time be set forth in
separate resolutions. Any request for a Revolving Loan which is not accompanied
by a LIBOR Notice of Borrowing shall be deemed a request for a Prime Rate Loan.

 

(c)          This Agreement shall bind and inure to
the benefit of the respective permitted successors and assigns of each of the
parties hereto.

 

(d)          Borrowers agree that any and all
Revolving Loans made by Agent and the Lenders to Borrowers or for its account
under this Agreement shall be conclusively deemed to have been authorized by
Borrowers and to have been made pursuant to duly authorized requests therefor
on its behalf.

 

(e)          Unless otherwise defined in this
Agreement, capitalized words or words used in Article 2 herein shall
have the meanings set forth in the Uniform Commercial Code as in effect in the
State of New Hampshire as of the date of this Agreement (as amended from time
to time, the “Uniform Commercial Code”).

 

(f)           Paragraph and section headings used
in this Agreement are for convenience only, and shall not affect the
construction of this Agreement. If one or more provisions of this Agreement (or
the application thereof) shall be invalid, illegal or unenforceable in any
respect in any jurisdiction, the same shall not, invalidate or render illegal
or unenforceable 

 

81

 

such provision
(or its application) in any other jurisdiction or any other provision of this
Agreement (or its application). This Agreement is the entire agreement of the
parties with respect to the subject matter hereof and supersedes any prior
written or verbal communications or instruments relating thereto.

 

(g)          Borrowers shall indemnify Agent, each
Lender and each of their respective officers, directors, Affiliates, attorneys,
employees and agents (each an “Indemnitee”)
from and against any and all actual liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, out-of pocket expenses and
disbursements of any kind or nature whatsoever (including, without limitation,
fees and disbursements of counsel) which may be imposed on, incurred by, or
asserted against Agent or any Lender in any litigation, proceeding or
investigation instituted or conducted by any governmental agency or
instrumentality or any other Person with respect to any aspect of, or any
transaction contemplated by, or referred to in, or any matter related to, this
Agreement or the Other Documents, whether or not Agent or any Lender is a party
thereto, except to the extent that any of the foregoing arises out of (x) the
gross (not mere) negligence, willful misconduct, bad faith or material breach
of this Agreement or any Other Document of or by such Indemnitee or any of its
agents, Affiliates, employees, officers, directors or advisors, (y) a claim
brought by the Borrowers against an Indemnitee for material breach of such
Indemnitee’s obligations hereunder or under any Other Document or (z) a claim
between two Indemnitees; and subject to any actual or potential conflict
determined in the sole judgment of any Indemnitee, Indemnitees will use a
single general counsel and, to the extent reasonable or customary, a single “specialty
counsel” and a single local counsel in each applicable jurisdiction.

 

(h)          Unless otherwise provided in this
Agreement, all notices or demands by any party relating to this Agreement or
any other loan document shall be in writing and (except for financial
statements and other informational documents which may be sent by first-class
mail, postage prepaid) shall be personally delivered or sent by registered or
certified mail (postage prepaid, return receipt requested ), overnight courier,
or telefacsimile to Borrowers or to Agent, as the case may be, at its address
set forth below:

 

 

	
  (A)

  	
   

  	
  If to Agent:

  	
   

  	
  Citizens Bank New Hampshire

  
	
   

  	
   

  	
   

  	
   

  	
  875 Elm Street

  
	
   

  	
   

  	
   

  	
   

  	
  Manchester, NH 03101

  
	
   

  	
   

  	
   

  	
   

  	
  Attn: Lori
  Chandonnais, Senior Vice President

  
	
   

  	
   

  	
   

  	
   

  	
  E-Mail: Lori.chandonnais@citizensbank.com

  
	
   

  	
   

  	
   

  	
   

  	
  Telephone:            (603)
  634-7311

  
	
   

  	
   

  	
   

  	
   

  	
  Telecopier:            (603)
  634-7392

  

 

	
  (A)

  	
   

  	
  With a copy
  to:

  	
   

  	
  Burns & Levinson LLP

  
	
   

  	
   

  	
   

  	
   

  	
  125 Summer Street

  
	
   

  	
   

  	
   

  	
   

  	
  Boston, MA 02110-1624

  
	
   

  	
   

  	
   

  	
   

  	
  Attn: 
  Frank A. Segall, Esq.

  
	
   

  	
   

  	
   

  	
   

  	
  Leslie B. Muldowney, Esq.

  
	
   

  	
   

  	
   

  	
   

  	
  Telephone:            (617)
  345-3000

  
	
   

  	
   

  	
   

  	
   

  	
  Telecopier:            (617)
  345-3299

  

 

82

 

	
   

  	
   

  	
   

  	
   

  	
  E-Mail:
  Fsegall@burnslev.com

  
	
   

  	
   

  	
   

  	
   

  	
  Lmuldowney@burnslev.com

  

 

	
   

  	
   

  	
  If to
  Borrowers:

  	
   

  	
  GT Solar International, Inc.

  
	
   

  	
   

  	
   

  	
   

  	
  243 Daniel Webster Highway

  
	
   

  	
   

  	
   

  	
   

  	
  Merrimack, New Hampshire 03054

  
	
   

  	
   

  	
   

  	
   

  	
  Attn:       Howard
  Smith, CFO

  
	
   

  	
   

  	
   

  	
   

  	
  Telephone: (603) 502-3387

  
	
   

  	
   

  	
   

  	
   

  	
  Facsimile (     )      -     

  
	
   

  	
   

  	
   

  	
   

  	
  E-Mail:
  hsmith@gtsolar.com

  

 

	
   

  	
   

  	
  With a copy
  to:

  	
   

  	
  Kirkland & Ellis LLP

  
	
   

  	
   

  	
   

  	
   

  	
  200 E. Randolph Dr.

  
	
   

  	
   

  	
   

  	
   

  	
  Chicago, IL 
  60601

  
	
   

  	
   

  	
   

  	
   

  	
  Attn: 
  Maureen Sweeney, Esq.

  
	
   

  	
   

  	
   

  	
   

  	
  Telephone: (312) 861-2190

  
	
   

  	
   

  	
   

  	
   

  	
  Facsimile: (312) 660-0359

  
	
   

  	
   

  	
   

  	
   

  	
  E-Mail:
  msweeney@kirkland.com

  

 

(B)                                If
to a Lender other than Agent, as specified on the signature pages hereof or
under any Commitment Transfer Supplement executed thereafter.

 

The parties
hereto may change the address at which they are to receive notices hereunder,
by notice in writing in the foregoing manner given to the other. All notices or
demand sent in accordance with this section shall be deemed received on the earlier
of the date of actual receipt or three (3) days after the deposit thereof in
the mail.

 

(i)           Agent shall have no obligation to
maintain any electronic records or any documents, schedules, invoices, agings
or any other paper delivered to Agent by Borrowers in connection with this
Agreement or any Other Document for more than four (4) months after receipt of
the same by Agent.

 

(j)           Neither this Agreement nor any
uncertainty or ambiguity herein shall be construed or resolved against Agent,
any Lender or Borrowers, whether under any rule of construction or otherwise. On
the contrary, this Agreement has been reviewed by all parties and shall be
construed and interpreted according to the ordinary meaning of the words used
so as to fairly accomplish the purposes and intentions of all parties hereto.

 

(k)          Each provision of this Agreement shall
be severable from every other provision of this Agreement for the purpose of
determining the legal enforceability of any specific provision.

 

(l)           The laws of New Hampshire shall
govern the construction of this Agreement and the rights and duties of the
parties hereto. This Agreement shall take effect as a sealed instrument.

 

83

 

(m)         Each Lender that is subject to the USA
Patriot Act and the Agent hereby notifies the Borrowers that pursuant to the
requirements of the USA Patriot Act, it is required to obtain, verify and
record information that identifies the Borrowers, which information includes
the name, address and taxpayer identification of the Borrowers and other
information that will allow such Lender or the Agent, as applicable, to
identify the Borrowers in accordance with the USA Patriot Act.

 

(n)          This Agreement may be executed in
multiple counterparts, each of which shall be effective upon delivery and,
thereafter, shall be deemed to be an original, and all of which shall be taken
as one and the same instrument with the same effect as if each party hereto had
signed on the same signature page. Any signature page of this Agreement may be
detached from any counterpart of this Agreement without impairing the legal
effect of any signature thereto and may be attached to another part of this
Agreement identical in form hereto and having attached to it one or more
additional signature pages. This Agreement may be transmitted by facsimile
machine or by electronic mail in portable document format (“pdf”) and
signatures appearing on faxed instruments and/or electronic mail instruments
shall be treated as original signatures.

 

[SIGNATURES
APPEAR ON FOLLOWING PAGES]

 

84

 

IN WITNESS WHEREOF, this Loan
and Security Agreement has been duly executed on the day and year specified at
the beginning of this Agreement.

 

	
  WITNESS

  	
  BORROWERS:

  
	
   

  	
   

  
	
   

  	
  GT SOLAR
  INTERNATIONAL, INC.

  
	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
  /s/ Howard
  T. Smith

  	
   

  
	
   

  	
  Name: Howard
  T. Smith

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GT SOLAR
  INCORPORATED

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GT EQUIPMENT
  HOLDINGS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

[SIGNATURES CONTINUED ON FOLLOWING PAGE]

 

 

	
   

  	
   

  	
   

  	
  GT SOLAR HOLDINGS, LLC

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:
   OCM/GFI Power Opportunities Fund II, L.P.

  
	
   

  	
   

  	
   

  	
  Its:  
  Managing Member

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  By:
   GFI Power Opportunities Fund II GP, LLC

  
	
   

  	
   

  	
   

  	
   

  	
  Its:
   General Partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  By:
   GFI Energy Ventures LLC

  
	
   

  	
   

  	
   

  	
   

  	
  Its:  
  Managing Member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Richard
  K. Landers

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Name:
   Richard K. Landers

  
	
   

  	
   

  	
   

  	
   

  	
  Its:
   Principal

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  By:
   OCM/GFI Power Opportunities Fund II

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  (CAYMAN), L.P.

  
	
   

  	
   

  	
   

  	
   

  	
  Its:  
  Managing Member

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  By:
   GFI Power Opportunities Fund II GP

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  (Cayman) Ltd.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Its:
   General Partner

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  By:
   GFI Power Opportunities Fund II GP, LLC

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Its:  
  Director

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  By:
   GFI Energy Ventures LLC

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Its:
   Managing Member

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Richard
  K. Landers

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Name:
   Richard K. Landers

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Title:
   Principal

  
																						

 

 

LENDERS:

 

	
  CITIZENS
  BANK NEW HAMPSHIRE, individually

  	
  Loan Amount:

  
	
  And as a
  Lender and as Agent

  	
  $40,000,000.00

  
	
   

  	
  Percentage:  66.7%

  
	
   

  	
   

  
	
  By: 

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  
	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ,

  	
  Loan Amount:

  
	
  As a Lender

  	
  $20,000,000.00

  
	
   

  	
  Percentage  33.3%

  
	
   

  	
   

  
	
  By: 

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  
	
  Title:

  	
   

  
							

 

 

SCHEDULES

 

The following
Schedules to the within the Amended and Restated Loan and Security Agreement
(All Assets) are respectively described in the section indicated. Those
Schedules in which no information has been inserted shall be deemed to read “None”.

 

SCHEDULE “A”

 

Borrowers’ Places of Business and
Organizational Identification Number (§3)

 

	
  Entity

  	
   

  	
  Property
  Address

  	
   

  	
  Organizational
  ID No.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  GT Solar
  International, Inc.

  	
   

  	
  243 Daniel
  Webster Highway

  	
   

  	
  4226823

  
	
   

  	
   

  	
   Merrimack, NH 03054

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  GT Solar
  Incorporated

  	
   

  	
  243 Daniel
  Webster Highway

  	
   

  	
  3469748

  
	
   

  	
   

  	
   Merrimack, NH 03054

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  110 E.
  Broadway, Fourth Floor

  	
   

  	
   

  
	
   

  	
   

  	
  Missoula, MT

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  GT Solar Holdings,
  LLC

  	
   

  	
  243 Daniel
  Webster Highway

  	
   

  	
  4067093

  
	
   

  	
   

  	
   Merrimack, NH 03054

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  GT Equipment
  Holdings, Inc.

  	
   

  	
  243 Daniel
  Webster Highway

  	
   

  	
  398964

  
	
   

  	
   

  	
   Merrimack, NH 03054

  	
   

  	
   

  

 

 

SCHEDULE “B”

 

Other Encumbrances and Liens (§4(f)(i))

 

 

SCHEDULE
“C”

 

Loan Amounts and Commitment Percentages

 

	
  Lender

  	
   

  	
  Loan Amount

  	
   

  	
  Commitment Percentage

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Citizens
  Bank New Hampshire

  	
   

  	
  $

  	
  40,000,000

  	
   

  	
  66.7

  	
  %

  
							

 

 

EXHIBIT 1

 

FORM OF

REVOLVING CREDIT NOTE

 

	
  $___________________________

  	
   

  	
  Date:  March          ,
  2007

  

 

This Revolving
Credit Note (this “Note”) is
executed and delivered under and pursuant to the terms of that certain Loan and
Security Agreement (All Assets), dated of even date herewith (as amended,
restated, supplemented or modified from time to time, the “Loan Agreement”), by and among and GT Solar
International, Inc., a Delaware corporation (“GT
International”), GT Solar Incorporated, a Delaware corporation (“GT Solar”), GT Solar Holdings, LLC, a
Delaware limited liability company (“GT
Holdings”) and GT Equipment Holdings, Inc., a New Hampshire
corporation , a New Hampshire corporation (“GT
Equipment” and collectively, jointly and several with GT
International, GT Solar and GT Holdings, the “Borrowers”,
each individually, a “Borrower”)
and Citizens Bank New Hampshire. (“CBNH”),
various other financial institutions which are now or which hereafter became a
party thereto (CBNH and such other financial institutions are each, a “Lender” and collectively, the “Lenders”) and CBNH, agent for the Lenders
(in such capacity, the “Agent”). Capitalized
terms not otherwise defined herein shall have the meanings provided in the Loan
Agreement.

 

FOR VALUE
RECEIVED, the Borrowers hereby promise to pay to the order of [each Lender] at
the office of Agent located at 875 Elm Street, Manchester, New Hampshire 03101
or at such other place as Agent may from time to time designate to Borrower
Agent in writing, in each case in accordance with the terms of the Loan
Agreement:

 

(i)            the principal sum in the maximum
amount of                                                    
and     /100 Dollars ($                       )
or, if different from such amount, the unpaid outstanding principal balance of
[each Lender’s] Commitment Percentage of the Revolving Loans as may be due and
owing under the Loan Agreement, payable in accordance with the provisions of
the Loan Agreement, subject to acceleration upon the occurrence of an Event of
Default under the Loan Agreement or earlier termination of the Loan Agreement
pursuant to the terms thereof; and

 

(ii)           interest on the principal amount of
this Note from time to time outstanding until such principal amount is paid in
full at the applicable interest rate in effect under the applicable provisions
of the Loan Agreement. In no event, however, shall interest exceed the maximum
interest rate permitted by law. Upon and after the occurrence of an Event of
Default, and during the continuation thereof, interest shall be payable at the
default rate pursuant to the terms of the Loan Agreement.

 

This Note is
one of the Revolving Credit Notes referred to in the Loan Agreement and is
secured by all of the Collateral described in the Loan Agreement and the Other
Documents, is entitled to the benefits of the Loan Agreement and the Other
Documents and is subject to all of the agreements, terms and conditions therein
contained.

 

This Note is
subject to mandatory prepayment and may be voluntarily prepaid, in whole or 

 

 

in part, on the terms and
conditions set forth in the Loan Agreement.

 

If any Event
of Default shall occur under the Loan Agreement or any of the Other Documents,
which is not cured within any applicable grace period, then this Note may, as
provided in the Loan Agreement, be declared to be immediately due and payable,
without notice, together with reasonable attorneys’ fees pursuant to the terms
of the Loan Agreement.

 

This Note
shall be construed and enforced in accordance with the laws of the State of New
Hampshire.

 

To the extent
permitted by applicable law, the Borrowers expressly waive any presentment,
demand, protest, notice of protest, or notice of any kind except as expressly
provided in the Loan Agreement.

 

[Each Lender]
may at any time pledge all or a portion of its rights under the Other Documents
including any portion of this Revolving Credit Note to any of the twelve (12)
Federal Reserve Banks organized under Section 4 of the Federal Reserve Act, 12
U.S.C. § 341. No such pledge or enforcement thereof shall release [each Lender]
from its obligations under any of the Other Documents.

 

IN WITNESS
WHEREOF, the undersigned has executed this Revolving Credit Note by its duly
authorized officer with the intention that it constitutes a sealed instrument.

 

	
  WITNESS:

  	
   

  	
  GT SOLAR
  INTERNATIONAL, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By: 

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Its:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  GT SOLAR
  INCORPORATED

  
	
   

  	
   

  	
   

  	
  By: 

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Its:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  GT EQUIPMENT
  HOLDINGS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By: 

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Its: 

  	
   

  	
   

  
								

 

 

	
   

  	
  GT SOLAR
  HOLDINGS, LLC

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  OCM/GFI Power Opportunities Fund II, L.P.

  	
   

  
	
   

  	
  Its:

  	
  Managing Member

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
     By:

  	
  GFI Power Opportunities Fund II GP, LLC

  	
   

  
	
   

  	
     Its:

  	
  General Partner

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: GFI
  Energy Ventures LLC

  	
   

  
	
   

  	
   

  	
  Its:  Managing Member

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:
  Richard K. Landers

  	
   

  
	
   

  	
   

  	
  Its:
  Principal

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: OCM/GFI
  Power Opportunities Fund II

  	
   

  
	
   

  	
   

  	
  (CAYMAN),
  L.P.

  	
   

  
	
   

  	
  Its: Managing
  Member

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: GFI
  Power Opportunities Fund II GP

  	
   

  
	
   

  	
   

  	
  (Cayman)
  Ltd.

  	
   

  
	
   

  	
   

  	
  Its: General
  Partner

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: GFI
  Power Opportunities Fund II GP, LLC

  	
   

  
	
   

  	
   

  	
  Its:  Director

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: GFI
  Energy Ventures LLC

  	
   

  
	
   

  	
   

  	
  Its:  Managing
  Member

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:
  Richard K. Landers

  	
   

  
	
   

  	
   

  	
  Title:
  Principal

  	
   

  
																		

 

 

 

EXHIBIT 2

 

FORM OF

 

BORROWERSS CERTIFICATE OF

GENERAL AGREEMENTS AND

REPRESENTATIONS AND WARRANTIES

 

[Date]

 

The
undersigned,                       ,
does hereby certify that he is the duly authorized                    
of GT Solar International, Inc., a Delaware corporation (the “Company”)
and that, as such, solely in his capacity as an officer, he is authorized to
execute and deliver this Certificate on behalf of the Company, and GT Solar
Incorporated (“GT Solar”), GT Solar Holdings, LLC (“GT Holdings”)
and GT Solar Equipment Holdings, Inc. (“GT Equipment” and collectively,
jointly and severally with the Company, GT Solar and GT Holdings,  referred to herein as the “Borrowers”
and each, a “Borrower”) in connection with the extension of a Revolving
Loans from the Lenders to the Borrowers, on the terms and conditions set forth
pursuant to that certain Loan and Security Agreement (All Assets) by and
between Borrowers and the Lenders dated as of April      ,
2007 (as the same may be amended, restated, supplemented or modified from time
to time, the “Loan Agreement”). Capitalized terms used herein and not
otherwise defined shall have the respective meanings ascribed to them in the
Loan Agreement.

 

The undersigned
does hereby further certify solely in his capacity as an officer of the
Company, and not in an individual capacity, which such Company is the Borrower
Agent to the Borrowers, as follows:

 

1.             Each representation and warranty
contained in Sections 3 and 4 of the Agreement, and all Schedules
and Exhibits attached to the Loan Agreement are true and correct in all
material respects, on and as of the date hereof, or to the extent such
representation relates to an earlier date, then such date.

 

2.             No Default or Event of Default has
occurred or is continuing.

 

IN WITNESS
WHEREOF, the undersigned has duly executed this Certificate on this the        
day of                 ,
20   .

 

	
   

  	
  GT SOLAR
  INTERNATIONAL, INC.

  
	
   

  	
   

  
	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

 

EXHIBIT 3

 

NOTICE OF BORROWING

 

Date:              ,
200    

 

	
   

  	
  To:

  	
  Citizens
  Bank New Hampshire (Agent)

  
	
   

  	
  875 Elm
  Street

  
	
   

  	
  Manchester,
  NH 03101

  

 

Re:                               Loan
and Security Agreement (All Assets) dated April     , 2007
(as the same may be amended, restated, modified or supplemented from time to
time the “Loan Agreement”) by and
among Citizens Bank New Hampshire. (as “Agent”)
and the Lenders, and GT Solar International, Inc. (“GT International”), GT Solar Incorporated (“GT Solar”), GT Solar Holdings, LLC (“GT Holdings”) and GT Equipment Holdings,
Inc. (“GT Equipment” and
collectively, jointly and severally with GT International, GT Holdings and GT
Solar,  the “Borrowers”, and each, a “Borrower”)

 

This Notice of
Borrowing confirms the following request for q
a LIBOR Rate Loan - q conversion/continuation
of a Prime Rate Loan under the Revolving Loan (check applicable boxes) under
the Loan Agreement.

 

Date of Request:

 

Date of LIBOR Rate Loan:

 

Amount of LIBOR Rate Loan at LIBOR Rate: *

 

Interest Period:   One, two or three months

 

q                                    This
is a request for a continuation/conversion of a LIBOR loan described as
follows:

 

Date of Original Loan:

 

Amount of Original Loan:

 

Maturity Date:

 

Interest Period:  One, two or three months

 

Amount of Loan to be Continued or Converted:

 

The Borrower Agent
hereby certifies that all representations and warranties contained in Sections
3 and 4 of the Loan Agreement are true and correct in all material
respects on the date of this Notice of Borrowing as though such representations
and warranties had been made on this date (except to the extent that such
representation or warranty expressly relates to an earlier date, in which case
such representation and warranty shall be true and correct in all material
respects as of such earlier date). Terms used herein which are defined in the
Loan Agreement are used as so defined.

 

	
   

  	
  GT SOLAR
  INTERNATIONAL, INC.

  
	
   

  	
  (As Agent
  Borrower)

  
	
   

  
	
   

  	
  By:

  	
   

  	
   

  

 

 

EXHIBIT 4

 

COMPLIANCE CERTIFICATE

 

On behalf of
GT Solar International, Inc., (“GT
International” and/or “Borrower
Agent”), GT Solar Incorporated (“GT
Solar”), GT Solar Holdings, LLC (“GT
Holdings”) and GT Equipment Holdings, Inc. (“GT Equipment” and collectively, jointly and
severally with GT International, GT Holdings and GT Solar,  the “Borrowers”,
and each, a “Borrower”) the
Borrower Agent hereby certifies to the Agent and the Lenders, pursuant to the
Loan and Security Agreement (All Assets) among Borrowers, the Agent and the
Lenders dated April 20, 2007, (as the same may be amended, restated, modified
or supplemented from time to time, the “Loan
Agreement”), that:

 

1.             Capitalized terms not defined
herein shall have the meanings set forth in the Loan Agreement.

 

2.             The Borrowers have complied with
all the terms, covenants and conditions to be performed or observed by the Borrowers
contained in the Loan Agreement and other documents required to be executed by
the Borrowers in connection with the Loan Agreement, except as otherwise noted
below (if none, state none):                       

 

3.             Neither on the date hereof nor, if applicable,
after giving effect to the loan made on the date hereof, if applicable, does
there exist a Default or any Event of Default.

 

4.             The representations and warranties
contained in the Loan Agreement and in any Other Documents furnished at any
time thereunder are true, correct and complete in all material respects with
the same effect as though such representations and warranties had been made on
the date hereof, except to the extent that any such representation and warranty
relates solely to an earlier date (in which case such representation and
warranty shall be true, correct and complete in all material respects on and as
of such earlier date).

 

B.            Financial Covenants

 

As of the date
hereof or, for such period as may be designated below, the computations, ratios
and calculations as set forth below in accordance with Section 15 of the
Loan Agreement are true and correct:

 

1.             Quarterly
Proforma EBITDA: - Section 15(a)

 

The Proforma
EBITDA of GT Solar International, Inc. (on a consolidated basis with its
Subsidiaries) as of            ,
20   was $                    
, and as of the previous quarter ended                ,
20    was $            .

 

Required this Period: $              

 

Required last Period: $             

 

 

2.             Total
Funded Debt to Trailing Twelve Month Proforma EBITDA – Section 15(b)

 

The ratio of
total funded debt to proforma EBITDA of GT Solar International, Inc. (on a
consolidated basis with its Subsidiaries) 
as of                  ,
20    for the applicable period was equal to         
to 1, computed as follows:

 

	
  A.

  	
   

  	
  Senior
  Indebtedness

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  B.

  	
   

  	
  Subordinated
  Indebtedness

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  C.

  	
   

  	
  Letters of
  Credit Outstanding

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  D.

  	
   

  	
  Pledged Cash
  Collateral Accounts

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  E.

  	
   

  	
  Total Funded
  Debt (A + B + C – D)

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  F.

  	
   

  	
  Trailing
  Twelve Months Proforma EBITDA

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  G.

  	
   

  	
  Ratio of E
  to F =         to          

  	
   

  	
   

  	
   

  

 

 

3.             Debt
Service Coverage Ratio - Section 15(c)

 

The debt service coverage ratio of GT Solar International, Inc. ( (on a
combined basis with its Subsidiaries) as of                  ,
200      for the applicable period was equal to         
to 1, computed as follows:

 

	
  A.

  	
   

  	
  Net Income

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  B.

  	
   

  	
  Depreciation
  and Amortization

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  C.

  	
   

  	
  Interest

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  D.

  	
   

  	
  Distributions
  and Dividends

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  E.

  	
   

  	
  Unfinanced
  capital expenditures

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  F.

  	
   

  	
  A + B + C -
  D – E = cash flow

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  G.

  	
   

  	
  Interest

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  H.

  	
   

  	
  CMLTD

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  I.

  	
   

  	
  G + H =
  fixed charges

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  J.

  	
   

  	
  Ratio of F to
  I = ____ to _____

  	
   

  	
   

  	
   

  

 

 

4.             Capital Expenditures –
Section 15(d)

 

The Capital
Expenditures of GT Solar International, Inc. (on a consolidated basis with its
Subsidiaries) as of           ,
20   , for the fiscal period from                 ,
20     to             ,
20   , was $               
..

 

Annual
Maximum Allowed: $           

 

5.             WC Sublimit – Section 15(f)

 

The working
capital borrowings of the Borrowers outstanding as of            ,
20    were $            .

 

WC
Sublimit for this Period: $              

 

IN WITNESS
WHEREOF, the undersigned, a duly authorized officer of the Borrower Agent, has
executed and delivered this Certificate solely on behalf of the Borrower Agent
(solely in such capacity) and not in an individual capacity on                      ,
200   .

 

	
   

  	
  GT SOLAR
  INTERNATIONAL, INC.

  
	
   

  	
   

  
	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

 

EXHIBIT 5

 

FORM OF ASSIGNMENT AND ACCEPTANCE AGREEMENT

 

Reference is
made to that certain Loan and Security Agreement (All Assets) dated as of April
   , 2007 (as the same may be amended, restated, modified or
supplemented from time to time, the “Loan
Agreement”), among GT Solar International, Inc. (“GT International”), individually and as
Borrower Agent, GT Solar Incorporated (“GT
Solar”), GT Solar Holdings, LLC (“GT
Holdings”) and GT Equipment Holdings, Inc. (“GT Equipment”, and collectively, jointly
and severally with GT International, GT Solar and GT Holdings, the “Borrowers” and each, individually, a “Borrower”), 
the financial institutions party thereto, as lenders and Citizens Bank
New Hampshire for itself and as agent for the Lenders (in such capacity, the “Agent”). Terms defined in the Loan
Agreement are used herein with the same meanings.

 

1.             The undersigned assignor (the “Assignor”) hereby sells and assigns,
without recourse, to the undersigned assignee (the “Assignee”), and the Assignee hereby purchases and assumes,
without recourse, from the Assignor, effective as of the effective date set
forth below, the interests set forth below (the “Assigned Interest”) in the Assignor’s
rights and obligations under the Loan Agreement, including, without limitation,
the interests set forth below in the Commitments of the Assignor on the
effective date and the Loans including any Letters of Credit owing to the
Assignor which are outstanding on the effective date, together with unpaid
interest accrued on the assigned Loans or Letters of Credit to the effective
date and the amount, if any, set forth below of the fees accrued to the
effective date for the account of the Assignor. Each of the Assignor and the
Assignee hereby makes and agrees to be bound by all the representations,
warranties and agreements set forth in the Loan Agreement, a copy of which has
been received by each such party. From and after the effective date (i) the Assignee
shall be a party to and be bound by the provisions of the Loan Agreement and,
to the extent of the interest assigned by this Assignment and Acceptance, have
the rights and obligations of a Lender thereunder and under the Loan Documents
and (ii) the Assignor shall, to the extent of the interests assigned by this
Assignment and Acceptance, relinquish its rights and be released from its
obligations under the Loan Agreement.

 

2.             This Assignment and Acceptance is being delivered to the
Agent together with (i) the Notes evidencing the Loans included in the Assigned
Interest, (ii) if the Assignee is organized under the laws of a jurisdiction
outside the United States, such forms as may be required by the Agent, duly
completed and executed by such Assignee and (iii) if the Assignee is not
already a Lender under the Loan Agreement, an Administrative Questionnaire in
the form of Exhibit 5-1 to the Loan Agreement.

 

3.             THIS ASSIGNMENT AND ACCEPTANCE SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW HAMPSHIRE

 

Date of Assignment:

 

Legal Name of Assignor:

 

Legal Name of Assignee:

 

Assignee’s Address for Notices:

 

 

Effective date of Assignment
(may not be fewer than 5 Business Days after the Date of Assignment):

 

Percentage Assigned of
Commitments (set forth,

as a percentage of the
Aggregate

Allocations:           %

 

Principal Amount

Assigned: $

 

Fees Assigned (if any):

 

 

The terms set forth above are
hereby agreed to:

 

                                                            as
Assignor

 

	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
  Title

  	
   

  	
   

  

 

 

                                                            as
Assignee

 

	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  

 

 

Note:  The below consent is not required in the
event that an Event of Default has occurred and is continuing at the time of
the Assignment effected hereby.

 

The undersigned, a duly
authorized officer of the Borrower Agent, by executing below, hereby consents
to the Assignment evidenced by this Assignemnt and Acceptance Agreement,  on behalf of the Borrower Agent (solely in such
capacity) and not in an individual capacity on              ,
200   .

 

GT Solar Incorporated

 

	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  
	
  Title:

  	
   

  
				

 

EXHIBIT 5-1

 

FORM OF ADMNISTRATIVE QUESTIONNAIRE

 

Please accurately complete the
following information and return via FAX to the attention of                                    ,
Senior Vice President, Citizens Bank New Hampshire as soon as possible.

 

Fax Number: (         )
                   

 

LEGAL
NAME TO APPEAR IN DOCUMENTATION:

 

 

GENERAL
INFORMATION - DOMESTIC LENDING OFFICE:

 

Institution Name:

Street Address:

City, State, Zip Code:

CONTACTS/NOTIFICATION METHODS:

CREDIT CONTACTS:

Primary Contact:

Street Address:

City, State, Zip Code:

Phone Number:

FAX Number:

Backup Contact:

Street Address:

City, State, Zip Code:

Phone Number:

FAX Number:

TAX WITHHOLDING:

 

Non Resident Alien             Y*

 

* Form 4224 Enclosed

Tax ID Number

 

CONTACTS/NOTIFICATION
METHODS:

 

ADMINISTRATIVE
CONTACTS - BORROWINGS, PAYDOWNS, INTEREST, FEES, ETC.

 

Contact:

Street Address:

City, State, Zip Code:

Phone Number:

FAX Number:

 

 

PAYMENT
INSTRUCTIONS:

 

Name of Bank where funds are to
be transferred:

Routing Transit/ABA number of
Bank where funds are to be transferred:

Name of Account, if applicable:

Account Number:

Additional Information:

 

MAILINGS:

 

Please specify who should
receive financial information:

Name:

Street Address:

City, State, Zip Code:

 

It is very important that all
of the above information is accurately filled in and returned promptly. If
there is someone other than yourself who should receive this questionnaire,
please notify me of their name and FAX number and we will FAX them a copy of
the questionnaire. If you have any questions, please call me at (    )
                 .

 

PARTICIPANT
INFORMATION

 

Participant Name:

Address:

Primary Contact:

Title:

Department:

Phone Number:

Facsimile :

Alternate Contact:

Phone Number:

Facsimile #:

Account Officer:

Phone Number:

Tax ID #:

Commitment Percentage:

Maximum Commitment:

Interest Rate and Fees:

 

WIRE
INSTRUCTIONS TO YOUR BANK:

 

Bank Name:

Department Name:

ABA 9:

A/C #:

Attention:

Client Name/Ref

 

 

AGENT’S
WIRE INSTRUCTIONS:

 

Name:

ABA 9:

A/C #: (to be assigned)

Tax ID #:

Attention:

Client Name/Ref

                                  

 

 

SCHEDULE I TO

COMMITMENT TRANSFER SUPPLEMENT

 

LIST
OF OFFICES, ADDRESSES FOR NOTICE AND COMMITMENT AMOUNTS

 

	
  [Transferor Lender]

  	
   

  	
  Revised
  Commitment Amount

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Revised
  Commitment Percentage

  	
   

  	
   

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [Purchasing
  Lender]

  	
   

  	
  Commitment
  Amount

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Commitment
  Percentage

  	
   

  	
   

  	
  %

  

 

Addresses for Notices:

 

 

 

Attention:                             

Telephone:                             

Telecopier:                             

 

 

Schedule II to

COMMITMENT TRANSFER SUPPLEMENT

 

[Form of Transfer Effective
Notice]

 

To:                                                                                    ,
as Transferor Lender

 

And

 

                                                                                         ,
as Purchasing Lender:

 

The
undersigned, as Agent under the Loan and Security Agreement (All Assets) dated
as of                           
among GT Solar International, Inc.,                              ,
                                 
and                                ,
the financial institutions named therein (the “Lenders”) and Citizens Bank New Hampshire., as a Lender and as
Agent for Lenders, acknowledges receipt of four (4) executed counterparts of a
completed Commitment Transfer Supplement in the form attached hereto. [Note:
attach copy of Commitment Transfer Supplement]. Terms defined in such
Commitment Transfer Supplement are used herein as therein defined.

 

Pursuant to
such Commitment Transfer Supplement, you are advised that the Transfer
Effective Date will be [Insert date of Transfer Effective Notice].

 

	
   

  	
  CITIZENS BANK NEW HAMPSHIRE

  
	
   

  	
  As Agent

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

	
  ACCEPTED FOR
  RECORDATION

  
	
  IN REGISTER:

  	
   

  	
   

  
	
   

  
	
   Acceptance

  

 

 

 

SCHEDULE 1(d)

 

Excluded Collateral

 

SCHEDULE 4(m)

 

Commercial Tort Claims

(list for each Borrower separately)

 

	
  GT Solar
  International, Inc.

  	
   

  	
  None.

  
	
  GT Solar
  Incorporated

  	
   

  	
  None.

  
	
  GT Solar
  Holdings, LLC

  	
   

  	
  None.

  
	
  GT Equipment
  Holdings, Inc.

  	
   

  	
  None

  

 

 

SCHEDULE 4(i)

 

Litigation

 

None.

 

 

SCHEDULE 15(a) 

 

Pro Forma EBITDA

 

	
   

  	
   

  	
  Jun - June

  	
   

  	
  Sep - September

  	
   

  	
  Dec - December

  	
   

  	
  Mar - March

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  2007

  	
   

  	
  2007

  	
   

  	
  2007

  	
   

  	
  2007

  	
   

  	
  Total

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  OP -
  Operating Profit

  	
   

  	
  -1,476,022.28

  	
   

  	
  1,343,076.41

  	
   

  	
  1,287,414.08

  	
   

  	
  8,636,183.47

  	
   

  	
  9,790,651.68

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  AMO_DEP_ADD - add:

  Depreciation & Amort

  	
   

  	
  3,996,539.28

  	
   

  	
  3,999,693.50

  	
   

  	
  4,012,601.84

  	
   

  	
  4,058,817.94

  	
   

  	
  16,067,652.56

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  STKCOMP - add: Non-Cash Stock Compensation
  Expense

  	
   

  	
  0.00

  	
   

  	
  213,243.00

  	
   

  	
  213,243.00

  	
   

  	
  213,243.00

  	
   

  	
  639,729.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  PURACCTOT - add:

  non-Cash Purchase Accounting Adjustments

  	
   

  	
  70,017.35

  	
   

  	
  277,803.90

  	
   

  	
  0.00

  	
   

  	
  0.00

  	
   

  	
  347,821.25

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
  2,590,534.35

  	
   

  	
  5,833,816.81

  	
   

  	
  5,513,258.92

  	
   

  	
  12,908,244.41

  	
   

  	
  26,845,854.49

  	
   

  

 

 

SCHEDULE 15(k)

 

Investments

 

None.

 

 

SCHEDULE 15(l)

 

Transactions With Affiliates

 

None.

 

 

SCHEDULE 15(q)

 

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EXECUTION COPY  

 
  Exhibit 10.2    
    

REGISTRATION RIGHTS AGREEMENT  

        REGISTRATION RIGHTS AGREEMENT, dated December 30, 2005 (this "Agreement") by and among GT Equipment Technologies, Inc., a Delaware corporation (the
"Company"), GT Solar Holdings, LLC, a Delaware limited liability company (together with any corporate successor thereto, "Holdings"), OCM/GFI Power
Opportunities Fund II, L.P. (the "Managing Member"), and the other holders of Shares of Holdings (together with the Managing Member, the
"Members"). 

        Upon
consummation of the merger contemplated by the Agreement and Plan of Merger (the "Merger Agreement"), dated December 8, 2005,
by and among the Company, Holdings and the other parties thereto, Holdings will own the entirety of the outstanding shares of common stock of the Company, par value $.01 per share
("Company Stock"). Upon execution and delivery of the Limited Liability Company Operating Agreement (the "LLC
Agreement") dated December 30, 2005 by Holdings and the Members, the Members will own the entirety of the Shares (defined in the LLC Agreement) of Holdings. The Managing
Member may hereafter elect to cause Holdings to be merged with or otherwise converted into a corporation, in turn causing the Shares to be converted into, exchanged for, or otherwise to be succeeded
by shares of common stock in such corporation or another corporation (in any such case, such common stock being herein referred to as "Holdings Stock"). 

        In
consideration of the foregoing, the mutual covenants and agreements contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereby agree as follows: 

        1.    Definitions.    

        (a)   "Affiliate" of any particular Person means (i) if such Person is an entity (A) any other Person
controlling, controlled by or under common control with such particular Person, where "control" means the possession, directly or indirectly, of the power to direct the management and policies of a
Person whether through the ownership of voting securities, by contract or otherwise, and (B) if such Person is a partnership, any partner thereof, and (ii) if such Person is an
individual, such Person's spouse and descendants (whether natural or adopted) and any trust solely for the benefit of such Person and/or such Person's spouse or descendants. 

        (b)   "Exchange Act" means the Securities Exchange Act of 1934, as amended. 

        (c)   "Governmental Entity" means any federal, state, local or foreign government, political subdivision, legislature, court,
agency, department, bureau, commission or other governmental regulatory authority, body or instrumentality, including any industry or other non-governmental self-regulatory
organizations. 

        (d)   "Manager Securities" means (i) Shares of Holdings at any time held by the Managing Member, and (ii) shares
of Company Stock or Registrable Securities issued or issuable with respect to the securities referred to in clause (i) above by way of a dividend or stock split or in connection with a
combination of shares, recapitalization, merger, consolidation or other reorganization, including after such time as Holdings has been merged with or otherwise converted into a corporation. As to any
particular Manager Securities, such securities shall cease to be Manager Securities when they have been distributed to the public pursuant to an offering registered under the Securities Act or sold to
the public through a broker, dealer or market maker in compliance with Rule 144 under the Securities Act (or any similar rule then in force), or repurchased by Holdings, the Company or any
subsidiary thereof. 

1

 

        (e)   "NASD" means the National Association of Securities Dealers, Inc., or any successor corporation thereto. 

        (f)    "Person" means an individual, corporation, partnership, limited liability company, firm, joint venture, association,
joint stock company, trust, unincorporated organization or other entity, or any Governmental Entity or quasi-governmental body or regulatory authority. 

        (g)   "Registrable Securities" means any or all of the following (i) shares of Company Stock at any time owned by
Holdings, (ii) shares of Company Stock issued or issuable with respect to the securities referred to in clause (i) above by way of a stock dividend or stock split or in connection with a
combination of shares, recapitalization, merger, consolidation or other reorganization, (iii) shares of Holdings Stock held by any of the Members, and (iv) shares of Holdings Stock
issued or issuable with respect to the securities referred to in clause (iii) above by way of a stock dividend or stock split or in connection with a combination of shares, recapitalization,
merger, consolidation or other reorganization. As to any particular Registrable Securities, such securities shall cease to be Registrable Securities when they have been distributed to the public
pursuant to an offering registered under the Securities Act or sold to the public through a broker, dealer or market maker in compliance with Rule 144 under the Securities Act (or any similar
rule then in force), or repurchased by Holdings, the Company or any subsidiary thereof. For purposes of this Agreement, a Person shall be deemed to be a holder of Registrable Securities, and the
Registrable Securities shall be deemed to be in existence, whenever such Person has the right to acquire directly or indirectly such Registrable Securities (upon conversion or exercise in connection
with a transfer of securities or otherwise, but disregarding any restrictions or limitations upon the exercise of such right), whether or not such acquisition has actually been effected, and such
Person shall be entitled to exercise the rights of a holder of Registrable Securities hereunder. 

        (h)   "Registrant" means the entity (Holdings or the Company, as the case may be) whose securities are to be registered
pursuant to this Agreement. 

        (i)    "Securities Act" means the Securities Act of 1933, as amended. 

        2.    Demand Registrations.    

        (a)    Requests for Registration. Subject to the terms and conditions of this paragraph 2:    

          (i)  Holder(s)
of a majority of the Manager Securities may at any time request registration by the Company or Holdings, as applicable, under the Securities Act on
Form S-1 or any similar long-form registration (registrations on such form referred to as "Long-Form
Registrations") or on Form S-2 or S-3 (registrations on such forms, including pursuant to Rule 415 under the Securities Act, referred to
as "Short-Form Registrations") of all or any portion of the Registrable Securities held by Holdings or such Person(s). 

         (ii)  All
registrations requested pursuant to this paragraph 2(a) are referred to herein as "Demand Registrations." 

        (b)   Each
request for a Demand Registration shall be made to the applicable Registrant and shall specify the approximate number of the Registrable Securities requested to be
registered, the anticipated per share price range for such offering and the intended method of distribution. Within three (3) business days after receipt of any such request, the applicable
Registrant shall give written notice of such requested registration to each Member who individually, or together with its Affiliates, holds at least five per cent (5%) of the outstanding common stock
of the Registrant and, subject to the terms of paragraph 2(e) hereof, shall include in such registration (and in all related registrations and qualifications under state blue sky laws or in
compliance with other registration requirements and in any related underwriting) all of such Registrable Securities with respect to 

2

 

which
such Registrant has received written requests for inclusion therein within fifteen (15) days after the receipt of the notice by such requesting holder. 

        (c)    Long-Form Registrations.    Holders of a majority of the Manager Securities shall be entitled to
request (i) three (3) Long-Form Registrations of Registrable Securities in which the Registrant shall pay all Registration Expenses ("Covered
Long-Form Registrations") and (ii) unlimited Long-Form Registrations in which the holders of the Registrant's Registrable Securities shall pay
their share of the Registration Expenses as set forth in paragraph 6 hereof. A registration shall not count as a Covered Long-Form Registration until it has become effective;
provided that the Registrant shall pay all Registration Expenses in connection with any registration initiated as a Covered Long-Form Registration whether or not it has become effective
and whether or not such registration has counted as a Covered Long-Form Registration. 

        (d)    Short-Form Registrations.    In addition to the Long-Form Registrations provided
pursuant to paragraph 2(c), the holders of a majority of the Manager Securities shall be entitled to request an unlimited number of Short-Form Registrations in which the Registrant
shall pay all Registration Expenses. Demand Registrations shall be Short-Form Registrations whenever the Registrant is permitted to use any applicable short form and if the managing
underwriters (if any) agree to the use of a Short-Form Registration. After the Registrant has become subject to the reporting requirements of the Securities Exchange Act, it shall use its
best efforts to make Short-Form Registrations on Form S-3 available for the sale of Registrable Securities. In the case of any Short-Form Registration filed
pursuant to Rule 415 under the Securities Act, the Registrant shall use its commercially reasonable best efforts to cause the registration statement to become effective as promptly as
practicable and maintain the effectiveness of such registration statement (subject to the terms and conditions of this Agreement) for a period ending on the earlier of (i) two years following
the date on which such registration statement first becomes effective, and (ii) the date on which all Registrable Securities covered by such registration statement have been sold and the
distribution contemplated thereby has been completed, or have become freely tradeable pursuant to Rule 144 under the Securities Act without regard to volume. 

        (e)    Priority on Demand Registrations.    The Registrant shall not include in any Demand Registration any securities
which are not Registrable Securities without the prior written consent of the holders of a
majority of the Manager Securities of the Registrant included in such registration. If a Demand Registration is an underwritten offering and the managing underwriters advise the Registrant in writing
that in their opinion the number of Registrable Securities and, if permitted hereunder, other securities requested to be included in such offering exceeds the number of Registrable Securities and
other securities, if any, of the Registrant, which can be sold therein without adversely affecting the marketability of the offering, the Registrant shall include in such registration
(i) first, the securities the Registrant proposes to sell, (ii) second, Registrable Securities requested to be included in such registration, pro
rata among the respective holders thereof on the basis of the number of such Registrable Securities owned by each such holder and (iii) third, (if permitted by the
holders of a majority of the Manager Securities) other securities of the Registrant requested to be included in such registration, pro rata among the respective holders thereof on the basis of the
number of shares owned by each such holder (to the extent permitted to be so included, in the case of securities which are not Registrable Securities). 

        (f)    Restrictions on Demand Registrations.    The Registrant may postpone for up to 90 days the filing or the
effectiveness of a registration statement for a Demand Registration if the Registrant's board of directors determines in its reasonable good faith judgment that such Demand Registration would
reasonably be expected to have a material adverse effect on any proposal or plan by the Registrant or any of its subsidiaries to engage in any acquisition of assets or stock (other than in the
ordinary course of business) or any merger, consolidation, tender offer, recapitalization, reorganization or similar transaction; provided that in such event, the holders of 

3

 

Registrable
Securities initially requesting such Demand Registration shall be entitled to withdraw such request and, if such request is withdrawn, such Demand Registration shall in no event count as a
Covered Long-Form Registration hereunder and the Registrant shall pay all Registration Expenses in connection with such registration. The Registrant may delay a Demand Registration
hereunder only once in any twelve-month period. 

        (g)    Selection of Underwriters.    The holders of a majority of the Manager Securities shall have the right to
select the investment banker(s) and manager(s) to administer the offering, subject to the approval of the Registrant, which shall not be unreasonably
withheld or delayed. 

        (h)    Other Registration Rights.    Each of the Company and Holdings represents and warrants that it is not a party
to, or otherwise subject to, any other agreement granting registration rights to any other Person with respect to any securities of the Company, or
Holdings, as applicable. Except as provided in this Agreement, the Company and Holdings shall not grant to any Persons the right to request such entity to register any equity securities of such
entity, or any securities convertible or exchangeable into or exercisable for such securities, without the prior written consent of the holders of a majority of the Manager Securities. 

        3.    Piggyback Registrations.    

        (a)    Right to Piggyback.    If at any time a Registrant proposes (whether or not pursuant to the receipt of a
request for a Demand Registration) to register any shares of such Registrant's Registrable Securities under the Securities Act, and the registration form to be used may be used for the registration of
Registrable Securities, the Registrant shall promptly, and in any event within three (3) business days, give written notice to each Member who individually, or together with its Affiliates,
holds at least five per cent (5%) of the outstanding common stock of the Registrant of its intention to effect such a registration and, subject to the terms of paragraphs 3(c) and 3(d) hereof,
shall include in such registration (and in all related registrations or qualifications under blue sky laws or in compliance with other registration requirements and in any related underwriting) all
Registrable Securities of the Registrant with respect to which the Registrant has received written requests for inclusion therein within fifteen (15) days after the receipt of the Registrant's
notice (such required additional registration, collectively with the type of required additional registration contemplated in subsection (ii) below, to be referred to as a
"Piggyback Registration"). 

        (b)    Piggyback Expenses.    The Registration Expenses of the holders of Registrable Securities shall be paid by the
Registrant in all Piggyback Registrations. 

        (c)    Priority on Primary Registrations.    If a Piggyback Registration is an underwritten primary registration on
behalf of the Registrant and the managing underwriters advise the Registrant in writing that in their opinion the number of securities requested to be included in such registration exceeds the number
which can be sold in such offering without adversely affecting the marketability of the offering, the Registrant shall include in such registration (i) first, the securities the Registrant
proposes to sell, (ii) second, the number of Registrable Securities of the Registrant requested to be included in such registration, pro rata among the holders of such Registrable Securities on
the basis of the number of such Registrable Securities owned by each such holder, and (iii) third, (if and to the extent permitted by the holders of a majority of the Manager Securities) other
securities requested to be included in such registration, pro rata among the holders of such securities on the basis of the number of securities owned by each such holder (to the extent permitted to
be so included, in the case of securities which are not Registrable Securities). 

        (d)    Priority on Secondary Registrations.    If a Piggyback Registration is an underwritten secondary registration
on behalf of holders of the Registrant's securities and the managing 

4

 

underwriters
advise the Registrant in writing that in their opinion the number of securities requested to be included in such registration exceeds the number which can be sold in such offering without
adversely affecting the marketability of the offering, the Registrant shall include in such registration (i) first, the securities requested to be included therein by the holders requesting
such registration and the number of Registrable Securities of the Registrant requested to be included in such registration, pro rata among the holders of such Registrable Securities on the basis of
the number of such Registrable Securities owned by each such holder, and (ii) second, (if and to the extent permitted by the holders of a majority of the Manager Securities) other securities
requested to be included in such registration, pro rata among the holders of such securities on the basis of the number of securities owned by each such holder (to the extent permitted to be so
included, in the case of securities which are not Registrable Securities). 

        (e)    Selection of Underwriters.    If any Piggyback Registration is an underwritten offering, the selection of
investment banker(s) and manager(s) for the offering must be approved by the holders of a majority of Manager Securities included in such Piggyback Registration. Such approval shall not be
unreasonably withheld or delayed. 

        (f)    Other Registrations.    If the Registrant has previously filed a registration statement with respect to
Registrable Securities pursuant to paragraph 2 or pursuant to this paragraph 3, and if such previous registration has not been withdrawn or abandoned, the Registrant shall not file or
cause to be effected any other registration of any of its equity securities or securities convertible or exchangeable into or exercisable for its equity securities under the Securities Act (except on
Form S-8 or any successor form), whether on its own behalf or at the request of any holder or holders of such securities, until a period of at least one hundred eighty
(180) days has elapsed from the effective date of such previous registration. 

        4.    Holdback Agreements.    

        (a)   Each
holder of Registrable Securities shall not effect any public sale or distribution (including sales pursuant to Rule 144) of equity securities of the
applicable Registrant, or any securities convertible into or exchangeable or exercisable for such securities, during the seven days prior to and the one hundred eighty (180)-day period
beginning on the effective date of any underwritten Demand Registration or any underwritten Piggyback Registration in which such Registrant's Registrable Securities are included (except as part of
such underwritten registration), unless the underwriters managing the registered public offering otherwise agree. 

        (b)   Each
of the Company and Holdings (i) shall not effect any public sale or distribution of its equity securities (or, in the case of Holdings, Company securities),
or any securities convertible into or exchangeable or exercisable for such securities, during the seven days prior to and during the one hundred eighty (180)-day period beginning on the
effective date of any underwritten Demand Registration or any underwritten Piggyback Registration (except as part of such underwritten registration or pursuant to registrations on
Form S-8 or any successor form), unless the underwriters managing the registered public offering otherwise agree, and (ii) shall cause each holder of each entity's respective
equity interests, or any securities convertible into or exchangeable or exercisable for such interests, purchased from such entity at any time after the date of this Agreement (other than in a
registered public offering) to agree not to effect any public sale or distribution (including sales pursuant to Rule 144) of any such securities during such period (except as part of such
underwritten registration, if otherwise permitted), unless the underwriters managing the registered public offering otherwise agree. 

        5.    Registration Procedures.    Whenever the holders of a majority of the Manager Securities have requested that any
Registrable Securities be registered pursuant to this Agreement, the applicable Registrant shall use its best efforts to effect the registration and the sale of such Registrable Securities 

5

 

in
accordance with the intended method of disposition thereof, and pursuant thereto, the applicable Registrant shall as expeditiously as reasonably practicable: 

        (a)   prepare
and file with the Securities and Exchange Commission a registration statement, and all amendments and supplements thereto and related prospectuses as may be
necessary to comply with applicable securities laws, with respect to such Registrable Securities and use its best efforts to cause such registration statement to become effective (provided that before
filing a registration statement or prospectus or any amendments or supplements thereto, the Registrant shall furnish to the counsel selected by the holders of a majority of the Manager Securities
covered by such registration statement copies of all such documents proposed to be filed, which documents shall be subject to the review and comment of such counsel; 

        (b)   notify
each holder of such Registrable Securities of the effectiveness of each registration statement filed hereunder and prepare and file with the Securities and
Exchange Commission such amendments and supplements to such registration statement and the prospectus used in connection therewith as may be necessary to keep such registration statement effective for
a period of not less than one hundred eighty (180) days and comply with the provisions of the Securities Act with respect to the disposition of all securities covered by such registration
statement during such period in accordance with the intended methods of disposition by the sellers thereof set forth in such registration statement; 

        (c)   furnish
to each seller of Registrable Securities of such Registrant such number of copies of such registration statement, each amendment and supplement thereto, the
prospectus included in such registration statement (including each preliminary prospectus) and such other documents as such seller
may reasonably request in order to facilitate the disposition of the Registrable Securities owned by such seller; 

        (d)   use
its best efforts to register or qualify such Registrable Securities under such other securities or blue sky laws of such jurisdictions as any seller reasonably
requests and do any and all other acts and things which may be reasonably necessary or advisable to enable such seller to consummate the disposition in such jurisdictions of the Registrable Securities
owned by such seller (provided that the Registrant shall not be required to (i) qualify generally to do business in any jurisdiction where it would not otherwise be required to qualify but for
this subparagraph, (ii) subject itself to taxation in any such jurisdiction or (iii) consent to general service of process in any such jurisdiction); 

        (e)   notify
each seller of such Registrable Securities, at any time when a prospectus relating thereto is required to be delivered under the Securities Act, of the happening
of any event as a result of which the prospectus included in such registration statement contains an untrue statement of a material fact or omits any fact necessary to make the statements therein not
misleading, and, at the request of any such seller, the Registrant shall prepare a supplement or amendment to such prospectus so that, as thereafter delivered to the purchasers of such Registrable
Securities, such prospectus shall not contain an untrue statement of a material fact or omit to state any fact necessary to make the statements therein not misleading; 

        (f)    cause
all such Registrable Securities to be listed on each securities exchange on which similar securities issued by the Registrant are then listed and, if not so
listed, to be listed on the NASD automated quotation system and, if listed on the NASD automated quotation system, use its best efforts to secure designation of all such Registrable Securities covered
by such registration statement as a NASDAQ "national market system security" within the meaning of Rule 11Aa2-1 of the Securities and Exchange Commission or, failing that, to secure
NASDAQ authorization for such Registrable Securities and, without limiting the generality of the foregoing, to arrange for at least two market makers to register as such with respect to such
Registrable Securities with the NASD; 

6

 

        (g)   provide
a transfer agent and registrar for all such Registrable Securities not later than the effective date of such registration statement; 

        (h)   enter
into such customary agreements (including underwriting agreements in customary form) and take all such other actions as the holders of a majority of the
Registrable Securities being sold or the underwriters, if any, reasonably request in order to expedite or facilitate the disposition of such Registrable Securities (including effecting a stock split
or a combination of shares, and including cooperating in reasonable marketing efforts, including participation by senior executives of the Registrant in any "roadshow" or similar meeting with
potential investors); 

        (i)    make
available for inspection by any seller of Registrable Securities, any underwriter participating in any disposition pursuant to such registration statement and any
attorney, accountant or other agent retained by any such seller or underwriter, all financial and other records, pertinent corporate documents and properties of the Registrant and cause the officers,
directors, employees and independent accountants of the Registrant to supply all information reasonably requested by any such seller, underwriter, attorney, accountant or agent in connection with such
registration statement; 

        (j)    otherwise
use its best efforts to comply with all applicable rules and regulations of the Securities and Exchange Commission, and make available to its security holders,
as soon as reasonably practicable, an earnings statement covering the period of at least twelve months beginning with the first day of the Company's first full calendar quarter of the Registrant after
the effective date of the registration statement, which earnings statement shall satisfy the provisions of Section 11(a) of the Securities Act and Rule 158 thereunder; and 

        (k)   permit
any holder of such Registrable Securities which holder, in its sole and exclusive judgment, might be deemed to be an underwriter or a controlling person of the
Registrant, to participate in the preparation of such registration or comparable statement and to require the insertion therein of material, furnished to the Registrant in writing, which in the
reasonable judgment of such holder and its counsel should be included; and 

        (l)    in
the event of the issuance of any stop order suspending the effectiveness of a registration statement, or of any order suspending or preventing the use of any related
prospectus or suspending the qualification of any common stock included in such registration statement for sale in any jurisdiction, the Registrant shall use its reasonable best efforts promptly to
obtain the withdrawal of such order. 

7

  

        (m)  use
its best efforts to cause such Registrable Securities covered by such registration statement to be registered with or approved by such other governmental agencies or
authorities as may be necessary to enable the sellers thereof to consummate the disposition of such Registrable Securities; 

        (n)   if
such offering is an underwritten offering, obtain (and address to the underwriters and the holders of Registrable Securities who sell shares in the offering) a cold
comfort letter from the independent public accountants of the Registrant in customary form and covering such matters of the type customarily covered by cold comfort letters as the holders of a
majority of the Registrable Securities being sold reasonably request; 

        (o)   provide
(and address to the underwriters and the holders of Registrable Securities who sell shares in the offering) a legal opinion of the outside counsel of the
Registrant, dated the effective date of such registration statement (and, if such registration includes an underwritten public offering, dated the date of the closing under the underwriting
agreement), with respect to the registration statement, each amendment and supplement thereto, the prospectus included therein (including the preliminary prospectus) and such other documents relating
thereto in customary form and covering such matters of the type customarily covered by legal opinions of such nature. 

        6.    Registration Expenses.    

        (a)   All
expenses incident to the performance by the Registrant of or compliance with this Agreement, including without limitation all registration, qualification and filing
fees, fees and expenses of compliance with securities or blue sky laws, printing expenses, messenger and delivery expenses, fees and disbursements of custodians, and fees and disbursements of counsel
for the Registrant and all independent certified public accountants, underwriters (excluding discounts and commissions) and other Persons retained by the Registrant (all such expenses being herein
called "Registration Expenses"), shall be borne as provided in this Agreement, except that the Registrant shall, in any event, pay its internal expenses
(including, without limitation, all salaries and expenses of its officers and employees performing legal or accounting duties), the expense of any annual audit or quarterly review, the expense of any
liability insurance and the expenses and fees for listing the securities to be registered on each securities exchange on which similar securities issued by the Registrant are then listed or on the
NASD automated quotation system. 

        (b)   In
connection with each Demand Registration and each Piggyback Registration, the applicable Registrant shall reimburse the holders of Registrable Securities included in
such registration for the reasonable fees and disbursements of one counsel chosen by the holders of a majority of Manager
Securities included in such registration (or, if no Manager Securities are included therein, one counsel chosen by the holder of a majority of the Registrable Securities included therein) and for the
reasonable fees and disbursements of each additional counsel retained by any holder of Registrable Securities for the purpose of rendering a legal opinion on behalf of such holder in connection with
any underwritten Demand Registration or Piggyback Registration. 

        (c)   To
the extent Registration Expenses are not required to be paid by the Registrant, each holder of securities included in any registration hereunder shall pay those
Registration Expenses allocable to the registration of such holder's securities so included, and any Registration Expenses not so allocable shall be borne by all sellers of securities included in such
registration in proportion to the aggregate selling price of the securities to be so registered. 

        7.    Indemnification.    

        (a)   Each
Registrant agrees to indemnify, to the extent permitted by law, each holder of its Registrable Securities, its officers and directors and each Person who controls
such holder (within 

8

 

the
meaning of the Securities Act) against all losses, claims, actions, damages, liabilities and expenses caused by (i) any untrue or alleged untrue statement of material fact contained in any
registration statement, prospectus or preliminary prospectus or any amendment thereof or supplement thereto or any omission or alleged omission of a material fact required to be stated therein or
necessary to make the statements therein not misleading, or (ii) any violation or alleged violation by such Registrant of the Securities Act or any other similar federal or state securities
laws or any rule or regulation promulgated thereunder applicable to Registrant and relating to action or inaction required of the Registrant in connection with any such registration, qualification or
compliance, and to pay to each holder of such Registrant's Registrable Securities, its officers and directors and each Person who controls such holder (within the meaning of the Securities Act), as
incurred, any legal and any other expenses reasonably incurred in connection with investigating, preparing or defending any such claim, loss, damage, liability or action, except insofar as the same
are caused by or contained in any information furnished in writing to the Registrant by such holder expressly for use therein or by such holder's failure to deliver a copy of the registration
statement or prospectus or any amendments or supplements thereto after Registrant has furnished such holder with a sufficient number of copies of the same. In connection with an underwritten offering,
the Registrant shall indemnify such underwriters, their officers and directors and each Person who controls such underwriters (within the meaning of the Securities Act) to the same extent as provided
above with respect to the indemnification of the holders of Registrable Securities. 

        (b)   In
connection with any registration statement in which a holder of Registrable Securities is participating, each such holder shall furnish to the Registrant in writing
such information and affidavits as the Registrant reasonably requests for use in connection with any such registration statement or prospectus and, to the extent permitted by law, shall indemnify
Registrant, its directors and officers and each Person who controls Registrant (within the meaning of the Securities Act) against any losses, claims, damages, liabilities and expenses resulting from
any untrue or alleged untrue statement of
material fact contained in the registration statement, prospectus or preliminary prospectus or any amendment thereof or supplement thereto or any omission or alleged omission of a material fact
required to be stated therein or necessary to make the statements therein not misleading, but only to the extent that such untrue or misleading statement or omission is contained in any information or
affidavit so furnished in writing by such holder; provided that the obligation to indemnify shall be individual, not joint and several, for each holder and shall be limited to the net amount of
proceeds received by such holder from the sale of Registrable Securities pursuant to such registration statement. 

        (c)   Any
Person entitled to indemnification hereunder shall (i) give prompt written notice to the indemnifying party of any claim with respect to which it seeks
indemnification (provided that the failure to give prompt notice shall not impair any Person's right to indemnification hereunder to the extent such failure has not prejudiced the indemnifying party)
and (ii) unless in such indemnified party's reasonable judgment a conflict of interest between such indemnified and indemnifying parties may exist with respect to such claim, permit such
indemnifying party to assume the defense of such claim with counsel reasonably satisfactory to the indemnified party. If such defense is assumed, the indemnifying party shall not be subject to any
liability for any settlement made by the indemnified party without its consent (but such consent shall not be unreasonably withheld). An indemnifying party who is not entitled to, or elects not to,
assume the defense of a claim shall not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such indemnifying party with respect to such claim, unless in
the reasonable judgment of any indemnified party a conflict of interest may exist between such indemnified party and any other of such indemnified parties with respect to such claim. In such instance,
the conflicting indemnified parties shall have a right to retain one separate counsel, chosen by the holders of a majority of the Registrable Securities included in the registration, at the 

9

 

expense
of the indemnifying party. No indemnifying party, in the defense of such claim or litigation, shall, except with the consent of each indemnified party, consent to the entry of any judgment or
enter into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect to such
claim or litigation. 

        (d)   The
indemnification and contribution provided for under this Agreement shall remain in full force and effect regardless of any investigation made by or on behalf of the
indemnified party or any officer, director or controlling Person of such indemnified party and shall survive the transfer of securities. Each Registrant also agrees to make such provisions, as are
reasonably requested by any indemnified party, for contribution to such party in the event the Registrant's indemnification is unavailable for any reason. 

        (e)   If
the indemnification provided for in this paragraph 7 is held by a court of competent jurisdiction to be unavailable to an indemnified party or is otherwise
unenforceable with respect to any loss, claim, damage, liability or action referred to herein, then the indemnifying party, in lieu of indemnifying such indemnified party hereunder, shall contribute
to the amounts paid or payable by such indemnified party as a result of such loss, claim, damage, liability or action in such proportion as is appropriate to reflect the relative fault of the
indemnifying party on the one hand and of the indemnified party on the other hand in connection with the statements or omissions which resulted in such loss, claim, damage, liability
or action as well as any other relevant equitable considerations; provided that the maximum amount of liability in respect of such contribution shall be limited, in the case of each seller of
Registrable Securities, to an amount equal to the net proceeds actually received by such seller from the sale of Registrable Securities effected pursuant to such registration. The relative fault of
the indemnifying party and of the indemnified party shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission to state
a material fact relates to information supplied by the indemnifying party or by the indemnified party and the parties' relative intent, knowledge, access to information and opportunity to correct or
prevent such statement or omission. The parties hereto agree that it would not be just or equitable if the contribution pursuant to this paragraph were to be determined by pro rata allocation or by
any other method of allocation that does not take into account such equitable considerations. The amount paid or payable by an indemnified party as a result of the losses, claims, damages, liabilities
or expenses referred to herein shall be deemed to include any legal or other expenses reasonably incurred by such indemnified party in connection with investigating or defending against any action or
claim which is the subject hereof. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any Person
who is not guilty of such fraudulent misrepresentation. 

        8.    Additional Parties; Joinder.    The Company may permit any Person who acquires Company Stock or rights to
acquire Company Stock after the date hereof, and Holdings may permit any Person who acquires Shares, Holdings Stock or rights to acquire either of Shares or Holdings Stock after the date hereof (all
such stock and Shares collectively referred to as the "Acquired Interests"), to become a party to this Agreement and to succeed to all of the rights and
obligations of a "holder of Registrable Securities" and, as applicable, a "Member" under this Agreement by obtaining an executed joinder to this Agreement from such Person in the form of
Exhibit A attached hereto, and upon the execution and delivery of the joinder by such Person, such Person shall for all purposes be a "holder of Registrable Securities" and, if a holder of
Shares, a "Member" under this Agreement with respect to such Acquired Interests. 

10

 

        9.    Miscellaneous.    

        (a)    No Inconsistent Agreements.    Neither the Company nor Holdings shall hereafter enter into any agreement with
respect to its securities which is inconsistent with or violates the rights granted to the holders of Registrable Securities in this Agreement. 

        (b)    Adjustments Affecting Registrable Securities.    Neither the Company nor Holdings shall take any action, or
permit any change to occur, with respect to its securities which would adversely affect the ability of the holders of Registrable Securities to include such Registrable Securities in a registration
undertaken pursuant to this Agreement or which would adversely affect the marketability of such Registrable Securities in any such registration (including, without limitation, effecting a stock split
or a combination of shares). 

        (c)    Remedies.    Any Person having rights under any provision of this Agreement shall be entitled to enforce such
rights specifically (without posting a bond or other security), to recover damages caused by reason of any breach of any provision of this Agreement and to exercise all other rights granted by law.
The parties hereto agree and acknowledge that money damages would not be an adequate remedy for any breach of the provisions of this Agreement and that, in addition to any other rights and remedies
existing in its favor, any party shall be entitled to specific performance and/or other injunctive relief from any court of law or equity of competent jurisdiction (without posting any bond or other
security) in order to enforce or prevent violation of the provisions of this Agreement. 

        (d)    Amendments and Waivers.    Except as otherwise provided herein, the provisions of this Agreement may be amended
or waived only upon the prior written consent of the Company, Holdings, and the Managing Member; provided,  however, that no such amendment may
disproportionately and adversely affect the rights of any holders of Registrable Securities under this Agreement
without the consent of holders of a majority of such affected Registrable Securities. The failure of any party to enforce any of the provisions of this Agreement shall in no way be construed as a
waiver of such provisions and shall not affect the right of such party thereafter to enforce each and every provision of this Agreement in accordance with its terms. 

        (e)    Successors and Assigns.    All covenants and agreements in this Agreement by or on behalf of any of the parties
hereto shall bind and inure to the benefit of the respective successors and assigns of the parties hereto whether so expressed or not. In addition, whether or not any express assignment has been made,
the provisions of this Agreement which are for the benefit of purchasers or holders of Registrable Securities are also for the benefit of, and enforceable by, any subsequent holder of Registrable
Securities who becomes a party to this Agreement by executing a joinder as set forth in paragraph 8; provided that if any holder of Registrable Securities which is a limited partnership or
limited liability company distributes any Registrable Securities to its partners or members after the Company has effected a registered public offering of the Company Stock under the Securities Act,
such transferees of Registrable Securities shall no longer be subject to the provisions of paragraph 4(a) hereof. 

        (f)    Severability.    Whenever possible, each provision of this Agreement shall be interpreted in such manner as to
be effective and valid under applicable law, but if any provision of this Agreement is held to be prohibited by or invalid under applicable law, such provision shall be ineffective only to the extent
of such prohibition or invalidity, without invalidating the remainder of this Agreement. 

        (g)    Counterparts.    This Agreement may be executed simultaneously in two or more counterparts, any one of which
need not contain the signatures of more than one party, but all such counterparts taken together shall constitute one and the same Agreement. 

11

 

        (h)    Descriptive Headings.    The descriptive headings of this Agreement are inserted for convenience only and do
not constitute a part of this Agreement. 

        (i)    Governing Law.    This Agreement shall be governed by and in accordance with the internal rules of the State of
Delaware (without regard to its conflict of law rules). 

        (j)    Notices.    All notices and other communications hereunder shall be validly given or made if in writing,
(i) when delivered personally (by courier service or otherwise); (ii) when sent by telecopy; or (iii) when actually received if mailed by first-class certified or registered
United States mail, postage-prepaid and return receipt requested, and all legal process with regard hereto shall be validly served when served in accordance with applicable law, in each case to the
address of the party to receive such notice or other communication set forth below, or at such other address as any party hereto may from time to time advise the other parties pursuant to this
Section: 

If
to Holdings, to: 

GT
Solar Holdings, LLC

c/o GFI Energy Ventures, LLC

11611 San Vicente Blvd., Suite 710

Los Angeles, CA 90049

Attn:  Richard Landers

          Ian A. Schapiro

          Walid A. Gardezi

Facsimile: (310) 442-0540 

with
a copy to: 

Kirkland &
Ellis LLP

777 South Figueroa Street

Los Angeles, CA 90017

Attn:  John A. Weissenbach

          Damon R. Fisher

Facsimile: (213) 680-8500 

If
to the Company, to: 

GT
Equipment Technologies, Inc.

243 Daniel Webster Highway

Merrimack, New Hampshire 03054

Attn:  Dr. Kedar P. Gupta, Chief Executive Officer

          Daniel Lyman, General Counsel

Facsimile: (603) 598-0430 

with
a copy to: 

Kirkland &
Ellis LLP

777 South Figueroa Street

Los Angeles, CA 90017

Attn:  John A. Weissenbach

          Damon R. Fisher

Facsimile: (213) 680-8500 

12

 

If
to Managing Member, to:

OCM/GFI Opportunities Fund II, L.P.

c/o GFI Energy Ventures, LLC

11611 San Vicente Blvd., Suite 710

Los Angeles, CA 90049

Attn:  Richard Landers

          Ian A. Schapiro

          Walid A. Gardezi

Facsimile: (310) 442-0540 

with
a copy to:

Kirkland & Ellis LLP

777 South Figueroa Street

Los Angeles, CA 90017

Attn:  John A. Weissenbach

          Damon R. Fisher

Facsimile: (213) 680-8500 

or
to such other address or to the attention of such other person as the recipient party has specified by prior written notice to the sending party. 

        (k)    Mutual Waiver of Jury Trial.    As a specifically bargained inducement for each of the parties to enter into
this Agreement (with each party having had opportunity to consult counsel), each party hereto expressly and irrevocably waives the right to trial by jury in any lawsuit or legal proceeding relating to
or arising in any way from this Agreement or the transactions contemplated herein, and any lawsuit or legal proceeding relating to or arising in any way to this Agreement or the transactions
contemplated herein shall be tried in a court of competent jurisdiction by a judge sitting without a jury. 

*
* * * * 

13

        IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above. 

	 	 	GT SOLAR HOLDINGS, LLC
	

 	
 	

By:	

OCM/GFI POWER OPPORTUNITIES FUND II, L.P.
	

 	
 	

By:	

GFI Power Opportunities Fund II, GP, LLC
	 	 	Its:	General Partner
	

 	
 	

By:	

GFI Energy Ventures LLC
	 	 	Its:	Managing Member
	

 	
 	

By:	

/s/  RICHARD LANDERS      
 Name: Richard Landers

Title: Principal
	

 	
 	

GT EQUIPMENT TECHNOLOGIES, INC.
	

 	
 	

By:	

/s/  KEDAR P. GUPTA      
 Name: Dr. Kedar P. Gupta

Title: Chief Executive Officer
	

 	
 	

OCM/GFI POWER OPPORTUNITIES FUND II, L.P.
	

 	
 	

By:	

GFI Power Opportunities Fund II, GP, LLC
	 	 	Its:	General Partner
	

 	
 	

By:	

GFI Energy Ventures LLC
	 	 	Its:	Managing Member
	

 	
 	

By:	

/s/  RICHARD LANDERS      
 Name: Richard Landers

Title: Principal

[Signature Page—Registration Rights Agreement]  

	 	 	OCM/GFI POWER OPPORTUNITIES FUND II (CAYMAN), L.P.
	

 	
 	

By:	

GFI Power Opportunities Fund II GP (Cayman) Ltd.
	 	 	Its:	General Partner
	

 	
 	

By:	

GFI Power Opportunities Fund II GP, LLC
	 	 	Its:	Director
	

 	
 	

By:	

GFI Energy Ventures, LLC
	 	 	Its:	Managing Member
	

 	
 	

By:	

/s/  RICHARD LANDERS      
 Name: Richard Landers

Title: Principal
	 	 	ANGELENO GROUP
	

 	
 	

By:	

/s/  YANIR TEPPER      
 Name:Yanir Tepper

Title: Managing Member
	 	 	MOUNT HOPE GT CAPITAL LLC
	

 	
 	

By:	

/s/  BRIAN SCANLAN      
 Name: Brian Scanlan

Title: President

[Signature Page—Registration Rights Agreement]  

	 	 	/s/  KEDAR P. GUPTA      
 Dr. Kedar P. Gupta
	

 	
 	

/s/  JONATHAN A. TALBOTT      
 Jonathan A. Talbott
	

 	
 	

/s/  HOWARD SMITH      
 Howard Smith
	

 	
 	

ROYAL BANK OF CANADA
	

 	
 	

By:	

/s/  ALAN R. HIBBEN      
 Name:Alan R. Hibben

Title: CEO, RBC Capital Partners, A division of Royal Bank of Canada
	

 	
 	

/s/  THOMAS M. ZARRELLA      
 Thomas M. Zarrella

[Signature Page—Registration Rights Agreement]  

   EXHIBIT A  

REGISTRATION AGREEMENT

Joinder

The
undersigned is executing and delivering this Joinder pursuant to the Registration Agreement dated                        (as the
same may hereafter be amended, the "Registration Agreement"), among GT
Equipment Technologies, Inc., a Delaware corporation (the "Company"), GT Solar Holdings, LLC, a Delaware limited liability company (together with
any corporate successor thereto, "Holdings"), OCM/GFI Power Opportunities Fund II, L.P. (the "Managing
Member," and together with the other holders of Shares of Holdings, the "Members"). 

        By
executing and delivering this Joinder to the Registration Agreement, the undersigned hereby agrees to become a party to, to be bound by, and to comply with the provisions of the
Registration Agreement [as a Member and] as a holder of Registrable Securities in the same manner as if the undersigned were an
original signatory to the Registration Agreement, and the undersigned's            [shares of Company Stock] [shares of Holdings
Stock] [Shares of Holdings] (including the rights to acquire the same) shall be included as Registrable Securities under the Registration
Agreement. 

        Accordingly,
the undersigned has executed and delivered this Joinder as of the    day of                        ,
200    . 

	

 	
 	

 Signature of Holder
	

 	
 	

 Print Name of Holder

Registration
Rights Agreement—Exhibit A 

1

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