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ex101gtatdipcreditagreem

EXECUTION VERSION   110446369 v18   49219297_22         SENIOR SECURED SUPERPRIORITY      DEBTOR-IN-POSSESSION CREDIT AGREEMENT      Dated as of July 27, 2015      among      GT ADVANCED TECHNOLOGIES INC.,      as the Borrower,      CERTAIN SUBSIDIARIES OF GT ADVANCED TECHNOLOGIES INC.,      as Guarantors      and      THE LENDERS FROM TIME TO TIME PARTY HERETO, and      CANTOR FITZGERALD SECURITIES      as Administrative Agent and Collateral Agent           

 

   i   110446369 v18      TABLE OF CONTENTS   Page   ARTICLE I   DEFINITIONS AND ACCOUNTING TERMS   1.01 Defined Terms ......................................................................................................................1   1.02 Other Interpretive Provisions .............................................................................................26   1.03 Accounting Terms ..............................................................................................................27   1.04 Rounding ............................................................................................................................28   1.05 Times of Day ......................................................................................................................28   1.06 Currency Equivalents Generally ........................................................................................28   ARTICLE II   THE COMMITMENTS AND LOANS   2.01 The Loans...........................................................................................................................28   2.02 Loans ..................................................................................................................................29   2.03 Put Option Premium ..........................................................................................................29   2.04 Warrants .............................................................................................................................30   2.05 Prepayments .......................................................................................................................30   2.06 Termination of Commitment ..............................................................................................31   2.07 Repayment of Loans ..........................................................................................................31   2.08 Interest................................................................................................................................32   2.09 Fees ....................................................................................................................................32   2.10 Computation of Interest and Fees ......................................................................................32   2.11 Evidence of Debt................................................................................................................32   2.12 Payments Generally; Administrative Agent’s Clawback ...................................................33   2.13 Sharing of Payments by Lenders .......................................................................................34   ARTICLE III   TAXES, YIELD PROTECTION AND ILLEGALITY   3.01 Taxes ..................................................................................................................................35   3.02 Increased Costs ..................................................................................................................40   3.03 Compensation for Losses ...................................................................................................41   3.04 Mitigation Obligations; Replacement of Lenders ..............................................................41   3.05 Survival ..............................................................................................................................41   ARTICLE IV   CONDITIONS PRECEDENT TO BORROWING   4.01 Conditions of Extension of Loans ......................................................................................42   ARTICLE V      REPRESENTATIONS AND WARRANTIES   5.01 Existence, Qualification and Power ...................................................................................47   5.02 Authorization; No Contravention ......................................................................................47   5.03 Governmental Authorization; Other Consents ...................................................................47     

 

ii   110446369 v18      5.04 Binding Effect ....................................................................................................................48   5.05 Financial Conditions; No Material Adverse Effect ............................................................48   5.06 Litigation ............................................................................................................................48   5.07 No Default ..........................................................................................................................49   5.08 Ownership of Property; Liens; Investments ......................................................................49   5.09 Environmental Compliance ...............................................................................................50   5.10 Insurance ............................................................................................................................50   5.11 Taxes ..................................................................................................................................50   5.12 ERISA Compliance ............................................................................................................50   5.13 Subsidiaries; Loan Parties ..................................................................................................52   5.14 Margin Regulations; Investment Company Act .................................................................52   5.15 Disclosure ..........................................................................................................................52   5.16 Compliance with Laws ......................................................................................................53   5.17 Intellectual Property ...........................................................................................................53   5.18 Material Contracts ..............................................................................................................53   5.19 Permits; Licenses. ..............................................................................................................53   5.20 Bank Accounts and Securities Accounts ............................................................................54   5.21 Labor Matters .....................................................................................................................54   5.22 Collateral Documents .........................................................................................................54   5.23 Patriot Act ..........................................................................................................................54   5.24 OFAC .................................................................................................................................54   5.25 Reorganization Matters; Administrative Priority; Lien Priority ........................................55   5.26 Luxembourg Specific Representations ..............................................................................55   5.27 Mesa Fire Insurance Proceeds ...........................................................................................56   ARTICLE VI   AFFIRMATIVE COVENANTS   6.01 Financial Statements ..........................................................................................................56   6.02 Certificates; Other Information ..........................................................................................58   6.03 Notices ...............................................................................................................................60   6.04 Payment of Obligations ......................................................................................................61   6.05 Preservation of Existence, Etc ...........................................................................................61   6.06 Maintenance of Properties .................................................................................................61   6.07 Maintenance of Insurance ..................................................................................................61   6.08 Compliance with Laws ......................................................................................................62   6.09 Books and Records ............................................................................................................62   6.10 Inspection Rights ...............................................................................................................62   6.11 Use of Proceeds ..................................................................................................................62   6.12 Compliance with Environmental Laws ..............................................................................62   6.13 Preparation of Environmental Reports ...............................................................................63   6.14 Further Assurances .............................................................................................................63   6.15 Pleadings ............................................................................................................................65   6.16 Bi-Weekly Calls .................................................................................................................65   6.17 Milestones ..........................................................................................................................65   6.18 Intercompany Agreement Remedies ..................................................................................65     

 

iii   110446369 v18      ARTICLE VII      NEGATIVE COVENANTS   7.01 Liens ...................................................................................................................................66   7.02 Indebtedness .......................................................................................................................68   7.03 Investments ........................................................................................................................69   7.04 Fundamental Changes ........................................................................................................70   7.05 Dispositions........................................................................................................................70   7.06 Restricted Payments ...........................................................................................................71   7.07 Change in Nature of Business ............................................................................................72   7.08 Transactions with Affiliates ...............................................................................................72   7.09 Burdensome Agreements; Negative Pledges .....................................................................72   7.10 Budget Variance .................................................................................................................72   7.11 Minimum Cash...................................................................................................................73   7.12 Amendments of Organization Documents .........................................................................74   7.13 Chapter 11 Cases ................................................................................................................74   7.14 Prepayments, Etc. of Indebtedness ....................................................................................74   7.15 Sale Leasebacks .................................................................................................................74   7.16 Anti-Terrorism Laws ..........................................................................................................74   7.17 Apple Settlement Agreement; ASF Furnace Sales; Maximum Cash .................................75   ARTICLE VIII   EVENTS OF DEFAULT AND REMEDIES   8.01 Events of Default ...............................................................................................................76   8.02 Remedies upon Event of Default .......................................................................................80   8.03 Application of Funds..........................................................................................................80   ARTICLE IX   ADMINISTRATIVE AGENT AND COLLATERAL AGENT   9.01 Appointment and Authority ...............................................................................................81   9.02 Rights as a Lender ..............................................................................................................82   9.03 Exculpatory Provisions ......................................................................................................82   9.04 Reliance by Agent ..............................................................................................................83   9.05 Delegation of Duties ..........................................................................................................83   9.06 Resignation of Agent ..........................................................................................................83   9.07 Non-Reliance on Agent and Other Lenders .......................................................................84   9.08 Collateral and Guaranty Matters ........................................................................................84   ARTICLE X   CONTINUING GUARANTY   10.01 Guaranty .............................................................................................................................86   10.02 Contribution by Guarantors ...............................................................................................86   10.03 Certain Waivers ..................................................................................................................86   10.04 Liability of Guarantors Absolute .......................................................................................87   10.05 Waivers by Guarantors .......................................................................................................89   10.06 Guarantor’s Rights of Subrogation, Contribution ..............................................................89     

 

iv   110446369 v18      10.07 Subordination of Other Obligations ...................................................................................90   10.08 Continuing Guaranty ..........................................................................................................90   10.09 Authority of Guarantors or the Borrower ..........................................................................90   10.10 Financial Condition of the Borrower .................................................................................90   10.11 Luxembourg Guarantee Limitation Language ...................................................................91   ARTICLE XI   MISCELLANEOUS   11.01 Amendments, Etc. ..............................................................................................................92   11.02 Notices; Effectiveness; Electronic Communications .........................................................93   11.03 No Waiver; Cumulative Remedies; Enforcement ..............................................................95   11.04 Expenses; Indemnity; Damage Waiver ..............................................................................96   11.05 Payments Set Aside ............................................................................................................98   11.06 Successors and Assigns ......................................................................................................98   11.07 Treatment of Certain Information; Confidentiality ..........................................................101   11.08 Right of Setoff ..................................................................................................................102   11.09 Interest Rate Limitation ...................................................................................................103   11.10 Counterparts; Integration; Effectiveness ..........................................................................103   11.11 Survival of Representations and Warranties ....................................................................103   11.12 Severability ......................................................................................................................103   11.13 Replacement of Lenders ..................................................................................................104   11.14 Governing Law; Jurisdiction; Etc. ...................................................................................104   11.15 Waiver of Jury Trial .........................................................................................................106   11.16 No Advisory or Fiduciary Responsibility ........................................................................106   11.17 Electronic Execution of Assignments and Certain Other Documents .............................107   11.18 USA PATRIOT Act ..........................................................................................................107   11.19 Section 956 Override .......................................................................................................107   11.20 Waiver of Immunities.......................................................................................................107   11.21 Final DIP Order ................................................................................................................108                  

 

      110446369 v18      SENIOR SECURED SUPERPRIORITY   DEBTOR-IN-POSSESSION CREDIT AGREEMENT   This SENIOR SECURED SUPERPRIORITY DEBTOR-IN-POSSESSION CREDIT   AGREEMENT (this “Agreement”) is entered into as of July 27, 2015, among GT ADVANCED   TECHNOLOGIES INC., a Delaware corporation, as a debtor and debtor-in-possession, as   borrower (the “Borrower”), certain Subsidiaries of Borrower, each as a debtor and debtor-in-   possession, as Guarantors, each Lender from time to time party hereto (collectively, the   “Lenders” and individually, a “Lender”), and Cantor Fitzgerald Securities, as administrative   agent for the Lenders (in such capacity, the “Administrative Agent”) and as collateral agent for   the Lenders (in such capacity, the “Collateral Agent” and together with the Administrative Agent,   collectively, the “Agent”).   PRELIMINARY STATEMENTS:   WHEREAS, on October 6, 2014 (the “Petition Date”), the Borrower and certain   Subsidiaries of Borrower (collectively, the “Debtors” and each individually, a “Debtor”) have   commenced cases (the “Chapter 11 Cases”) under Chapter 11 of Title 11 of the Bankruptcy Code   in the United States Bankruptcy Court for the District of New Hampshire (the “Bankruptcy   Court”), and the Debtors have retained possession of their assets and are authorized under the   Bankruptcy Code to continue the operations of their businesses as debtors-in-possession; and   WHEREAS, the Borrower and the Guarantors have asked the Lenders to make post-   petition term loans and provide other financial or credit accommodations to the Borrower, and   the Lenders have agreed, subject to the conditions set forth herein, to extend a senior secured   credit facility to the Borrower, comprised of term loans in the aggregate principal amount of   $95,000,000.  The Lenders have severally, and not jointly, agreed to extend such credit to the   Borrower subject to the terms and conditions hereinafter set forth.   In consideration of the mutual covenants and agreements herein contained, the parties   hereto covenant and agree as follows:   ARTICLE I   DEFINITIONS AND ACCOUNTING TERMS   1.01 Defined Terms.  As used in this Agreement, the following terms shall have the   meanings set forth below:   “Acceptable Plan” shall have the meaning specified in Section 6.17.   “Advisor to Lenders” means Blackstone Advisory Partners L.P.   “Administrative Agent” shall have the meaning assigned to such term in the introductory   paragraph of this Agreement.   “Administrative Agent’s Office” means the Administrative Agent’s address and, as   appropriate, the account as set forth on Schedule 11.02, or such other address or account as the   Administrative Agent may from time to time notify the Borrower and the Lenders.     

 

2   110446369 v18      “Administrative Questionnaire” means an Administrative Questionnaire in substantially   the form of Exhibit C or any other form approved by the Administrative Agent.   “Affiliate” means, with respect to any Person, another Person that directly, or indirectly   through one or more intermediaries, Controls or is Controlled by or is under common Control   with the Person specified.   “Agent Fee Letter” shall mean the Fee Letter, dated as of July 27, 2015, between the   Agent and the Borrower.   “Agent Parties” has the meaning specified in Section 11.02(c).   “Aggregate Commitments” means the Commitments of all the Lenders.   “Aggregate Payments” has the meaning specified in Section 10.02.   “Agreement” means this Senior Secured Superpriority Debtor-in-Possession Credit   Agreement, as amended, restated, modified or supplemented from time to time in accordance   with the terms hereof.   “Agreement Currency” has the meaning specified in Section 11.19.   “Anti-Terrorism Laws” shall mean any Applicable Laws relating to terrorism or money   laundering, including Executive Order No. 13224, the Patriot Act, the Applicable Laws   comprising or implementing the Bank Secrecy Act, and the Applicable Laws administered by   OFAC (as any of the foregoing Applicable Laws may from time to time be amended, renewed,   extended, or replaced).   “Apple Claim” has the meaning assigned to such term in the Apple Settlement   Agreement.   “Apple Reduced Repayment Amount” has the meaning assigned to such term in the   Apple Settlement Agreement.   “Apple Repayment Amount” has the meaning assigned to such term in the Apple   Settlement Agreement.   “Apple Settlement Agreement” shall mean the Amended and Restated Adequate   Protection and Settlement Agreement, dated as of December 15, 2014, by and among Apple Inc.,   Platypus Development LLC, GTAT Corporation, GT Advanced Technologies, Inc., GT Advanced   Equipment Holding LLC, GT Equipment Holdings, Inc., Lindbergh Acquisition Corp., GT   Sapphire Systems Holding LLC, GT Advanced Cz LLC, GT Sapphire Systems Group LLC and   GT Advanced Technologies Limited, as in effect on the date hereof and giving effect to any   amendments in accordance with the terms of this Agreement.   “Apple Security Interest” has the meaning assigned to such term in the Apple Settlement   Agreement.     

 

3   110446369 v18      “Applicable Percentage” means with respect to any Lender at any time, the percentage   (carried out to the ninth decimal place) of the Facility represented by (i) such Lender’s   Commitment at such time and (ii) after the funding of such Loan, the principal amount of such   Lender’s Loans at such time.  The initial Applicable Percentage of each Lender is set forth   opposite the name of such Lender on Schedule 2.01 or in the Assignment and Assumption   pursuant to which such Lender becomes a party hereto, as applicable.   “Applicable Rate” means (a) 9.500% per annum payable in cash, and (b) 1.625% per   annum payable in kind other than on the Maturity Date.   “Approved Budget” has the meaning specified in Section 4.01(d).  For the avoidance of   doubt, once delivered and approved as set forth in Section 4.01(d), the Approved Budget may not   be amended or modified without the prior written consent of the Lenders holding 60% of the   aggregate amount of the Loans and Commitments under the Facility to the extent such   amendment or modification to the Approved Budget shall have an impact on the cash   disbursements variance covenant set forth in Section 7.10(b).   “Approved Fund” means any Fund that is administered or managed by (a) a Lender,   (b) an Affiliate of a Lender or (c) an entity or an Affiliate of an entity that administers or   manages a Lender.   “ASF Furnace” has the meaning assigned to such term in the Apple Settlement   Agreement.    “Assignee Group” means two or more Eligible Assignees that are Affiliates of one   another or two or more Approved Funds managed by the same investment advisor.   “Assignment and Assumption” means an assignment and assumption entered into by a   Lender and an Eligible Assignee (with the consent of any party whose consent is required by   Section 11.06(b)), and accepted by the Administrative Agent, in substantially the form of   Exhibit D or any other form approved by the Administrative Agent.   “Attributable Indebtedness” means, on any date, (a) in respect of any Capitalized Lease   of any Person, the capitalized amount thereof that would appear on a balance sheet of such   Person prepared as of such date in accordance with GAAP, (b) in respect of any Synthetic Lease   Obligation, the capitalized amount of the remaining lease or similar payments under the relevant   lease or other applicable agreement or instrument that would appear on a balance sheet of such   Person prepared as of such date in accordance with GAAP if such lease or other agreement or   instrument were accounted for as a Capitalized Lease and (c) all Synthetic Debt of such Person.   “Backstop Lender” has the meaning specified in the Commitment Letter.   “Blocked Person” means any Person (a) that is publicly identified (i) on the most current   list of “Specially Designated Nationals and Blocked Persons” published by OFAC or resides, is   organized or chartered, or has a place of business in a country or territory subject to OFAC   sanctions or embargo program or (ii) as prohibited from doing business with the United States   under the International Emergency Economic Powers Act, the Trading With the Enemy Act, or   any other Anti-Terrorism Law, (b) that is owned or controlled by, or that owns or controls, or that     

 

4   110446369 v18      is acting for or on behalf of, any Person described in clause (a) above, (c) which any Lender is   prohibited from dealing or otherwise engaging in any transaction by any Anti-Terrorism Law,   and (d) that is an Affiliate of a Person described in clauses (a), (b) or (c) above.   “Borrower” has the meaning specified in the introductory paragraph hereto.   “Borrower Materials” has the meaning specified in Section 6.02.   “Borrowing Notice” means a notice of a borrowing of Loan, pursuant to Section 2.02(a),   which, if in writing, shall be substantially in the form of Exhibit A or any other form reasonably   acceptable to the Administrative Agent.   “Business Day” means any day other than a Saturday, Sunday or other day on which   commercial banks are authorized to close under the Laws of, or are in fact closed in, the State of   New York or the state where the Administrative Agent’s Office is located.    “Capitalized Leases” means all leases that have been or should be, in accordance with   GAAP, recorded as capitalized leases.   “Carve-Out” has the meaning assigned to such term in the Final DIP Order.   “Cash Equivalents” means any of the following types of Investments, to the extent owned   by Borrower or any of its Subsidiaries free and clear of all Liens (other than Liens created under   the Collateral Documents and other Liens permitted hereunder):   (a) (i) readily marketable obligations issued or directly and fully guaranteed   or insured by the United States of America or any agency or instrumentality thereof   having maturities of not more than one year from the date of acquisition thereof; provided   that the full faith and credit of the United States of America is pledged in support thereof   and (ii) obligations issued by any State of the United States of America or political   subdivision thereof or corporation organized under the laws of the United States of   America or any state thereof that is rated AAA by S&P and Aaa by Moody’s maturing   within one year from the date of acquisition thereof;   (b) time deposits with, or insured certificates of deposit or bankers’   acceptances of, any commercial bank that (i) (A) is a Lender or (B) is organized under the   laws of the United States of America, any state thereof or the District of Columbia or is   the principal banking subsidiary of a bank holding company organized under the laws of   the United States of America, any state thereof or the District of Columbia, and is a   member of the Federal Reserve System, (ii) issues (or the parent of which issues)   commercial paper rated as described in clause (c) of this definition and (iii) has combined   capital and surplus of at least $500,000,000, in each case with maturities of not more than   one year from the date of acquisition thereof;   (c) commercial paper issued by any Person rated at least “Prime-1” (or the   then equivalent grade) by Moody’s or at least “A-1” (or the then equivalent grade) by   S&P, in each case with maturities of not more than one year from the date of acquisition   thereof;      

 

5   110446369 v18      (d) fully collateralized repurchase agreements with a term of not more than 30   days for securities described in clause (a) above and entered into with a financial   institution satisfying the criteria of clause (b) above;   (e) Investments, classified in accordance with GAAP as current assets of   Borrower or any of its Subsidiaries, in money market investment programs registered   under the Investment Company Act of 1940, which are administered by financial   institutions that have the highest rating obtainable from either Moody’s or S&P, and the   portfolios of which are limited solely to Investments of the character, quality and   maturity described in clauses (a), (b), (c) and (d) of this definition; and   (f) other short-term investments utilized by Foreign Subsidiaries in   accordance with normal investment practices for cash management in investments of a   type analogous to the foregoing.    “Casualty Event” means, with respect to any property of any Person, any loss of title   with respect to such property or any loss of or damage to or destruction of, or any condemnation   or other taking (including by any Governmental Authority) of, such property for which such   Person or any of its Subsidiaries receives insurance proceeds or proceeds of a condemnation   award or other compensation.    “Change in Law” means the occurrence, after the date of this Agreement, of any of the   following: (a) the adoption or taking effect of any law, rule, regulation or treaty, (b) any change   in any law, rule, regulation or treaty or in the administration, interpretation, implementation or   application thereof by any Governmental Authority or (c) the making or issuance of any request,   rule, guideline or directive (whether or not having the force of law) by any Governmental   Authority; provided that notwithstanding anything herein to the contrary, (x) the Dodd-Frank   Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines or directives   thereunder or issued in connection therewith and (y) all requests, rules, guidelines or directives   promulgated by the Bank for International Settlements, the Basel Committee on Banking   Supervision (or any successor or similar authority) or the United States or foreign regulatory   authorities, in each case pursuant to Basel III, shall in each case be deemed to be a “Change in   Law”, regardless of the date enacted, adopted or issued.   “Change of Control” means an event or series of events by which:   (a) any “person” or “group” (as such terms are used in Sections 13(d) and   14(d) of the Securities Exchange Act of 1934, but excluding any employee benefit plan of   such person or its subsidiaries, and any person or entity acting in its capacity as trustee, agent   or other fiduciary or administrator of any such plan) becomes the “beneficial owner” (as   defined in Rules 13d-3 and 13d-5 under the Securities Exchange Act of 1934, except that a   person or group shall be deemed to have “beneficial ownership” of all securities that such   person or group has the right to acquire, whether such right is exercisable immediately or only   after the passage of time (such right, an “option right”)), directly or indirectly, of 50% or more   of the equity securities of Borrower entitled to vote for members of the board of directors or   equivalent governing body of Borrower on a fully diluted basis (and taking into account all     

 

6   110446369 v18      such securities that such “person” or “group” has the right to acquire pursuant to any option   right); or    (b) except as permitted by Article VII hereof, Borrower shall cease to,   directly or indirectly, beneficially own and control 100% on a fully diluted basis of the   economic and voting equity interests of any of its Subsidiaries.   “Chapter 11 Cases” has the meaning specified in the introductory paragraph hereto   “Chapter 11 Plan” has the meaning specified in Section 6.17.   “Charged Hong Kong Shares” means 65% of voting and 100% of non-voting Equity   Interests of any Hong Kong Subsidiary that is owned by a Loan Party.   “Chinese Subsidiaries” has the meaning specified in Section 7.17(f).   “Closing Date” means the first date all the conditions precedent in Section 4.01 are   satisfied or waived in accordance with Section 11.01.   “Code” means the Internal Revenue Code of 1986, as amended.   “Collateral” shall have the meaning assigned to “DIP Collateral” in the Final DIP Order.    For the avoidance of doubt, the Collateral will include any intercompany notes from Hong Kong   Debtor to GTAT Corporation and rights of GTAT Corporation and GT Advanced Equipment   Holding LLC under any intercompany sales agreement, in each case, pursuant to the   Intercompany Agreement and any collateral rights thereunder.   “Collateral Agent” shall have the meaning assigned to such term in the introductory   paragraph of this Agreement.   “Collateral Documents” means, collectively, the Security Agreement, the Intellectual   Property Security Agreement, each Deposit Account Control Agreement and Securities Account   Control Agreement, Security Agreement Supplements, Hong Kong Share Pledge Documents,   Luxembourg Receivables Pledge Agreement, each of the collateral assignments, Security   Agreement Supplements, IP Security Agreement Supplements, security agreements, pledge   agreements or other similar agreements delivered to the Administrative Agent in respect of   Collateral pursuant to Section 6.14, and each of the other agreements, instruments or documents   that creates or purports to create a Lien in favor of the Collateral Agent with respect to the   Collateral for the benefit of the Secured Parties.   “Commitment” means, as to each Lender, its obligation to make Loans pursuant to   Section 2.01(a) in an aggregate principal amount at any one time outstanding not to exceed the   amount set forth opposite such Lender’s name on Schedule 2.01 under the caption   “Commitment” (or, with respect to any Backstop Lender, as may be adjusted pursuant to Section   2.01(b) in the event that any Lender is a Defaulting Lender) or opposite such caption in the   Assignment and Assumption pursuant to which such Lender becomes a party hereto, as   applicable, as such amount may be adjusted from time to time in accordance with this Agreement   (including pursuant to Section 2.13).       

 

7   110446369 v18      “Commitment Letter” means the Second Amended and Restated Commitment Letter   dated as of July 2, 2015 among the commitment parties party thereto, the Borrower and the   Debtors (other than GT Advanced Equipment Holding LLC) that are Loan Parties.   “Connection Income Taxes” means Other Connection Taxes that are imposed on or   measured by net income (however determined) or that are franchise Taxes or branch profits   Taxes.   “Contractual Obligation” means, as to any Person, any provision of any security issued   by such Person or of any agreement, instrument or other undertaking to which such Person is a   party or by which it or any of its property is bound.   “Control” means the possession, directly or indirectly, of the power to direct or cause the   direction of the management or policies of a Person, whether through the ability to exercise   voting power, by contract or otherwise.  “Controlling” and “Controlled” have meanings   correlative thereto.   “Convertible Notes” means (i) the 3.00% Convertible Senior Notes due 2017 issued by   the Borrower on September 28, 2012 and (ii) 3.00% Convertible Senior Notes due 2020 issued   by the Borrower on December 10, 2013.   “Debtor” has the meaning set forth in the recitals to this Agreement.   “Debtor Relief Laws” means the Bankruptcy Code of the United States, and all other   liquidation, conservatorship, bankruptcy, general assignment for the benefit of creditors,   moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief   Laws of the United States or other applicable jurisdiction from time to time in effect and   affecting the rights of creditors generally.   “Default” means any event or condition that constitutes an Event of Default or that, with   the giving of any notice, the passage of time, or both, would be an Event of Default.   “Default Rate” means when used with respect to Obligations, an interest rate equal to (i)   the Applicable Rate, plus (ii) 3% per annum, which 3% per annum set forth in this clause (ii)   shall be payable in kind other than on the Maturity Date.   “Defaulting Lender” has the meaning specified in Section 2.01.   “Designated Jurisdiction” means any country or territory to the extent that such country   or territory itself is the subject of any Sanction.   “Deposit Account Control Agreement” has the meaning specified in the Security   Agreement.   “DIP Foreclosure” means during the existence and continuance of an Event of Default,   the acceleration of Loans and the taking of any enforcement actions on any property of the   Borrower and its Subsidiaries by and on behalf of the Lenders.     

 

8   110446369 v18      “Disclosure Statement” has the meaning specified in Section 6.17.   “Disposition” or “Dispose” means the sale, transfer, license, lease or sub-lease (as lessor   or sublessor), assignment, conveyance or other disposition (including any sale and leaseback   transaction) of any asset or property of any kind, whether real, personal or mixed and whether   tangible or intangible, whether now owned or hereafter acquired, by any Person (or the granting   of any option or other right to do any of the foregoing),  including, without limitation, any sale,   assignment, transfer or other disposal, with or without recourse, of any notes or accounts   receivable or any rights and claims associated therewith, or the Equity Interests of any   Subsidiary of the Borrower.     “Disqualified Equity Interests” means any Equity Interest that, by its terms (or by the   terms of any security or any other Equity Interest into which it is convertible or for which it is   exchangeable), or upon the happening of any event or condition (a) matures or is mandatorily   redeemable (other than solely for Qualified Equity Interests), pursuant to a sinking fund   obligation or otherwise (except as a result of a change of control or asset sale so long as any   rights of the holders thereof upon the occurrence of a change of control or asset sale event shall   be subject to the prior repayment in full of the Loans and all other Obligations that are accrued   and payable, the termination of the Commitments), (b) is redeemable at the option of the holder   thereof (other than solely for Qualified Equity Interests), in whole or in part, (c) provides for the   mandatory or scheduled payments of dividends in cash, or (d) is or becomes convertible into or   exchangeable for Indebtedness or any other Equity Interest that would constitute Disqualified   Equity Interests, in each case, prior to the date that is ninety-one (91) days after the Maturity   Date.   “Dollar” and “$” mean lawful money of the United States.   “Domestic Subsidiary” means any Subsidiary that is organized under the laws of any   political subdivision of the United States.   “Effective Date” means the effective date of a plan of reorganization of the Borrower or   any other Debtor that has been confirmed by an order of the Bankruptcy Court.   “Eligible Assignee” means any Person that meets the requirements to be an assignee   under Section 11.06(b)(iii) and (v) (subject to such consents, if any, as may be required under   Section 11.06(b)(iii)).   “Environmental Laws” means any and all Federal, state, local, and foreign statutes, laws,   regulations, ordinances, rules, judgments, orders, decrees, permits, concessions, grants,   franchises, licenses, agreements or governmental restrictions relating to pollution and the   protection of the environment or the release of any Hazardous Materials into the environment or   discharges to waste or public systems.   “Environmental Liability” means any liability, contingent or otherwise (including any   liability for damages, costs of environmental remediation, fines, penalties or indemnities), of   Borrower, any other Loan Party or any of their respective Subsidiaries directly or indirectly   resulting from or based upon (a) violation of any Environmental Law, (b) the generation, use,   handling, transportation, storage, treatment or disposal of any Hazardous Materials, (c) exposure     

 

9   110446369 v18      to any Hazardous Materials, (d) the release or threatened release of any Hazardous Materials into   the environment or (e) any contract, agreement or other consensual arrangement pursuant to   which liability is assumed or imposed with respect to any of the foregoing.   “Environmental Permit” means any permit, approval, identification number, license or   other authorization required under any Environmental Law.   “Equity Interests” means, with respect to any Person, all of the shares of capital stock of   (or other ownership or profit interests in) such Person, all of the warrants, options or other rights   for the purchase or acquisition from such Person of shares of capital stock of (or other ownership   or profit interests in) such Person, all of the securities convertible into or exchangeable for shares   of capital stock of (or other ownership or profit interests in) such Person or warrants, rights or   options for the purchase or acquisition from such Person of such shares (or such other interests),   and all of the other ownership or profit interests in such Person (including partnership, member   or trust interests therein), whether voting or nonvoting, and whether or not such shares, warrants,   options, rights or other interests are outstanding on any date of determination.   “ERISA” means the Employee Retirement Income Security Act of 1974.   “ERISA Affiliate” means any trade or business (whether or not incorporated) under   common control with Borrower within the meaning of Section 414(b) or (c) of the Code (and   Sections 414(m) and (o) of the Code for purposes of provisions relating to Section 412 of the   Code).   “ERISA Event” means (a) a Reportable Event with respect to a Pension Plan; (b) a   withdrawal of Borrower or any ERISA Affiliate from a Pension Plan subject to Section 4063 of   ERISA during a plan year in which such entity was a substantial employer (as defined in   Section 4001(a)(2) of ERISA) or a cessation of operations that is treated as such a withdrawal   under Section 4062(e) of ERISA; (c) a complete or partial withdrawal by Borrower or any   ERISA Affiliate from a Multiemployer Plan or notification that a Multiemployer Plan is in   reorganization; (d) the filing of a notice of intent to terminate or the treatment of a Pension Plan   amendment as a termination under Section 4041 or 4041A of ERISA; (e) the institution by the   PBGC of proceedings to terminate a Pension Plan; (f) any event or condition which could   reasonably be expected to constitute grounds under Section 4042 of ERISA for the termination   of, or the appointment of a trustee to administer, any Pension Plan; or (g) the determination that   any Pension Plan is considered an at-risk plan or a plan in endangered or critical status within the   meaning of Sections 430, 431 and 432 of the Code or Sections 303, 304 and 305 of ERISA; or   (h) the imposition of any liability under Title IV of ERISA, other than for PBGC premiums due   but not delinquent under Section 4007 of ERISA, upon Borrower or any ERISA Affiliate.   “Event of Default” has the meaning specified in Section 8.01.   “Excluded Subsidiary” means (i) any direct or indirect Subsidiary of the Borrower that is   not a Debtor, provided (a) such non-Debtor Subsidiary is an Immaterial Subsidiary, (b) such non-   Debtor Subsidiary would be prohibited by applicable Laws or regulation from joining in, or   becoming a party to, a Guaranty, or (c) joining in, or becoming a party to, a Guaranty would   result in material adverse tax consequences for the Borrower and its Subsidiaries, taken as a     

 

10   110446369 v18      whole, (ii) any Chinese Subsidiaries, (iii) any Hong Kong Subsidiaries and (iv) any direct or   indirect Subsidiary of the Borrower that is organized in Taiwan, Mauritius or Germany (or any   Domestic Subsidiary of the Subsidiaries listed in clauses (ii) thru (iv)) to the extent the aggregate   amount of total assets of all such Subsidiaries in this clause (iv) does not exceed 5.0% of the   aggregate amount of consolidated total assets of the Borrower and its Subsidiaries.    “Excluded Taxes” means any of the following Taxes imposed on or with respect to any   Recipient or required to be withheld or deducted from a payment to a Recipient, (a) Taxes   imposed on or measured by net income (however denominated), franchise (or similar) Taxes and   branch profits Taxes, in each case, (i) imposed as a result of such Recipient being organized   under the laws of, or having its principal office or, in the case of any Lender, its Lending Office   located in, the jurisdiction imposing such Tax (or any political subdivision thereof) or (ii) that are   Other Connection Taxes, (b) in the case of a Lender, U.S. federal withholding Taxes, imposed on   amounts payable to or for the account of such Lender with respect to an applicable interest in a   Loan or Commitment, pursuant to a law in effect on the date on which (i) such Lender acquires   such interest in the Loan or Commitment (other than pursuant to an assignment request by the   Borrower under Section 11.13) or (ii) such Lender changes its Lending Office, except in each   case to the extent that, pursuant to Section 3.01, amounts with respect to such Taxes were   payable either to such Lender’s assignor immediately before such Lender became a party hereto   or to such Lender immediately before it changed its Lending Office, (c) Taxes attributable to   such Recipient’s failure to comply with Section 3.01(f) and (d) any U.S. federal withholding   Taxes imposed pursuant to FATCA.    “Extraordinary Receipt” means any cash received by or paid to or for the account of any   Person not in the ordinary course of business (including in connection with the occurrence of any   Involuntary Disposition), including pension plan reversions and indemnity payments, but   excluding tax refunds, return of insurance premiums and Net Cash Proceeds that are referred to   in clauses (a) through (e) of the definition thereof.   “Facility” means, at any time, (a) on or prior to the Closing Date, the aggregate amount   of the Commitments at such time and (b) thereafter, the aggregate principal amount of the Loans   of all Lenders outstanding at such time.   “Fair Share” has the meaning specified in Section 10.02.   “Fair Share Contribution Amount” has the meaning specified in Section 10.02.   “FATCA” means Sections 1471 through 1474 of the Code, as of the date of this   Agreement (or any amended or successor version that is substantively comparable and not   materially more onerous to comply with) and any current or future regulations or official   interpretations thereof, and any agreements entered into pursuant thereto, including any   intergovernmental agreements and any rules or guidance implementing such intergovernmental   agreements.   “Federal Funds Rate” means, for any day, the rate per annum equal to the weighted   average of the rates on overnight Federal funds transactions with members of the Federal   Reserve System arranged by Federal funds brokers on such day, as published by the Federal     

 

11   110446369 v19      Reserve Bank of New York on the Business Day next succeeding such day; provided that (a) if   such day is not a Business Day, the Federal Funds Rate for such day shall be such rate on such   transactions on the next preceding Business Day as so published on the next succeeding Business   Day, and (b) if no such rate is so published on such next succeeding Business Day, the Federal   Funds Rate for such day shall be the average rate (rounded upward, if necessary, to a whole   multiple of 1/100 of 1%) charged to a national banking institution on such day on such   transactions as determined by the Administrative Agent.   “Final DIP Order” means the final order of the Bankruptcy Court pursuant to section 364   of the Bankruptcy Code approving the Loan Documents and the Facility entered on July 24,   2015.   “Fiscal Quarter” means each fiscal quarter of any Fiscal Year.   “Fiscal Year” means each fiscal year of Borrower and its Subsidiaries ending on   December 31 of each calendar year.   “Foreign Government Scheme or Arrangement” has the meaning specified in   Section 5.12(e).   “Foreign Lender” means (a) if the Borrower is a U.S. Person, a Lender that is not a U.S.   Person, and (b) if the Borrower is not a U.S. Person, a Lender that is resident or organized under   the laws of a jurisdiction other than that in which the Borrower is resident for tax purposes.  For   purposes of this definition, the United States, each State thereof and the District of Columbia   shall be deemed to constitute a single jurisdiction.   “Foreign Plan” has the meaning specified in Section 5.12(e).   “Foreign Subsidiary” means any Subsidiary that is not a Domestic Subsidiary.   “FRB” means the Board of Governors of the Federal Reserve System of the United   States.   “Fund” means any Person (other than a natural person) that is (or will be) engaged in   making, purchasing, holding or otherwise investing in commercial loans and similar extensions   of credit in the ordinary course of its activities.   “GAAP” means generally accepted accounting principles in the United States set forth in   the opinions and pronouncements of the Accounting Principles Board and the American Institute   of Certified Public Accountants and statements and pronouncements of the Financial Accounting   Standards Board or such other principles as may be approved by a significant segment of the   accounting profession in the United States, that are applicable to the circumstances as of the date   of determination.   “Governmental Authority” means the government of the United States or any other   nation, or of any political subdivision thereof, whether state or local, and any agency, authority,   instrumentality, regulatory body, court, central bank or other entity exercising executive,   legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to     

 

12   110446369 v18      government (including any supra-national bodies such as the European Union or the European   Central Bank).   “Guarantee”  means, as to any Person, without duplication, any (a) obligation, contingent   or otherwise, of such Person guaranteeing or having the economic effect of guaranteeing any   Indebtedness or other monetary obligation payable or performable by another Person (the   “primary obligor”) in any manner, whether directly or indirectly, and including any obligation of   such Person, direct or indirect, (i) to purchase or pay (or advance or supply funds for the   purchase or payment of) such Indebtedness or other monetary obligation, (ii) to purchase or lease   property, securities or services for the purpose of assuring the obligee in respect of such   Indebtedness or other monetary obligation of the payment or performance of such Indebtedness   or other monetary obligation, (iii) to maintain working capital, equity capital or any other   financial statement condition or liquidity or level of income or cash flow of the primary obligor   so as to enable the primary obligor to pay such Indebtedness or other monetary obligation, or   (iv) entered into for the purpose of assuring in any other manner the obligee in respect of such   Indebtedness or other monetary obligation of the payment or performance thereof or to protect   such obligee against loss in respect thereof (in whole or in part), or (b) Lien on any assets of such   Person securing any Indebtedness or other monetary obligation of any other Person, whether or   not such Indebtedness or other monetary obligation is assumed by such Person (or any right,   contingent or otherwise, of any holder of such Indebtedness to obtain any such Lien); provided   that the term “Guarantee” shall not include endorsements for collection or deposit in the ordinary   course of business or customary and reasonable indemnity obligations in effect on the Closing   Date or entered into in connection with any acquisition or Disposition of assets permitted under   this Agreement (other than such obligations with respect to Indebtedness). The amount of any   Guarantee shall be deemed to be an amount equal to the stated or determinable amount of the   related primary obligation, or portion thereof, in respect of which such Guarantee is made or, if   not stated or determinable, the maximum reasonably anticipated liability in respect thereof as   determined by the guaranteeing Person in good faith.  The term “Guarantee” as a verb has a   corresponding meaning.   “Guaranteed Obligations” has the meaning specified in Section 10.01.    “Guarantors” means each of the Guarantors identified on Schedule 6.14, and each Person   that executes the Guaranty pursuant to the terms of Section 6.14.   “Guaranty” means, the guaranty made in respect of the Obligations in favor of the   Secured Parties, contemplated in Article 10 hereof or otherwise in form and substance reasonably   satisfactory to the Administrative Agent, delivered pursuant to Section 6.14.   “Hazardous Materials” means all explosive or radioactive substances or wastes and all   hazardous or toxic substances, wastes or other pollutants, including petroleum or petroleum   distillates, asbestos or asbestos-containing materials, polychlorinated biphenyls, radon gas,   infectious or medical wastes and all other substances or wastes of any nature regulated pursuant   to any Environmental Law.   “Hilco Appraisal” means the (i) Inventory Appraisal report prepared by Hilco Valuation   Services, LLC dated December 17, 2014, (ii) M&E Appraisal report prepared by Hilco Valuation     

 

13   110446369 v18      Services, LLC dated December 17, 2014, and (iii) Hilco Real Property Appraisal prepared by   Hilco Real Estate Appraisal, LLC dated December 17, 2014.   “Hong Kong Share Pledge Agreement” has the meaning specified in Section 4.01(a)(iv).    “Hong Kong Share Pledge Documents” means (i) the Hong Kong Share Pledge   Agreement (certified by a Responsible Officer of GTAT Corporation), (ii) written resolutions of   GTAT Corporation authorizing the entering into of the Hong Kong Share Pledge Agreement and   all transactions contemplated thereunder, (iii) share certificates representing the Charged Hong   Kong Shares, (iv) duly executed instruments of transfer and sold notes relating to the Charged   Hong Kong Shares but with the name of the transferee, the consideration and the date left blank,   and (v) a certified copy (certified by a director or secretary of Hong Kong Debtor) of the articles   of association of Hong Kong Debtor.   “Hong Kong Debtor” means GT Advanced Technologies Limited.   “Hong Kong Subsidiary” means Hong Kong Debtor and any other Subsidiaries of the   Borrower organized in Hong Kong.   “IFRS” means international accounting standards within the meaning of the IAS   Regulation 1606/2002 to the extent applicable to the relevant financial statements.   “Immaterial Subsidiary” means any Subsidiary that (a) does not conduct any business   operations, (b) has assets with a value not in excess of $1,000 and (c) does not have any   Indebtedness outstanding.    “Indebtedness” means, as to any Person at a particular time, without duplication, all of   the following, whether or not included as indebtedness or liabilities in accordance with GAAP:   (a) all obligations of such Person for borrowed money and all obligations of   such Person evidenced by bonds, debentures, notes, loan agreements or other similar   instruments;   (b) the maximum amount of all direct or contingent obligations of such   Person arising under letters of credit (including standby and commercial), bankers’   acceptances, bank guaranties, surety bonds and similar instruments;   (c) net obligations of such Person under any Swap Contract;   (d) all obligations of such Person to pay the deferred purchase price of   property or services (other than (i) trade accounts payable in the ordinary course of   business, (ii) any earnout obligation until such obligation becomes due and payable,   (iii) expenses accrued in the ordinary course of business and (iv) outstanding non-   cancelable purchase orders for inventory, property and equipment);   (e) indebtedness (excluding prepaid interest thereon) secured by a Lien on   property owned or being purchased by such Person (including indebtedness arising under     

 

14   110446369 v18      conditional sales or other title retention agreements), whether or not such indebtedness   shall have been assumed by such Person or is limited in recourse;   (f) all Attributable Indebtedness in respect of Capitalized Leases and   Synthetic Lease Obligations of such Person and all Synthetic Debt of such Person;   (g) all obligations of such Person to purchase, redeem, retire, defease or   otherwise make any payment prior to 91 days after the Maturity Date in respect of any   Equity Interest in such Person or any other Person or any warrant, right or option to   acquire such Equity Interest, valued, in the case of a redeemable preferred interest, at the   greater of its voluntary or involuntary liquidation preference plus accrued and unpaid   dividends; and   (h) all Guarantees of such Person in respect of any of the foregoing.   For all purposes hereof, the Indebtedness of any Person shall include the Indebtedness of   any partnership or joint venture (other than a joint venture that is itself a corporation or limited   liability company) in which such Person is a general partner or a joint venturer, unless such   Indebtedness is expressly made non-recourse to such Person.  The amount of any net obligation   under any Swap Contract on any date shall be deemed to be the Swap Termination Value thereof   as of such date.  The amount of Indebtedness of any Person that is non-recourse to such Person   for purposes of clause (e) shall be deemed to be equal to the lesser of (i) the aggregate unpaid   amount of such Indebtedness and (ii) the fair market value of the property encumbered thereby.    “Indebtedness” does not include obligations representing deferred compensation to employees of   Borrower and its Subsidiaries incurred in the ordinary course of business.   “Indemnified Taxes” means (a) Taxes, other than Excluded Taxes, imposed on or with   respect to any payment made by or on account of any obligation of any Loan Party under any   Loan Document and (b) to the extent not otherwise described in (a), Other Taxes.   “Indemnitee” has the meaning specified in Section 11.04(b).   “Information” has the meaning specified in Section 11.07.   “Intellectual Property” has the meaning specified to the term “Intellectual Property   Collateral” in the Security Agreement.   “Intellectual Property Security Agreement” has the meaning specified in   Section 4.01(a)(v).   “Intercompany Agreement” means, collectively, the Intercompany Settlement Agreement,   dated July 20, 2015, by and among GTAT Corporation, GT Advanced Technologies Limited, and   GT Advanced Equipment Holding LLC, and each other agreement or document entered into   pursuant to such Intercompany Settlement Agreement, including all exhibits thereto.   “Intercompany Notes” means Priority Note and Contingent Note, in each case, as defined   in the Intercompany Agreement.     

 

15   110446369 v18      “Intercompany Subordination Agreement” means the Intercompany Subordination   Agreement to be executed and delivered by Borrower and each Subsidiary of Borrower,   substantially in the form attached hereto as Exhibit E.   “Interest Payment Date” means the last Business Day of each calendar month and the   Maturity Date of the Facility.   “Investment” means, as to any Person, any direct or indirect acquisition or investment by   such Person, whether by means of (a) the purchase or other acquisition of Equity Interests of   another Person, (b) a loan, advance or capital contribution to, Guarantee or assumption of debt   of, or purchase or other acquisition of any other debt or interest in, another Person, or (c) the   purchase or other acquisition (in one transaction or a series of transactions) of assets of another   Person that constitute a business unit or all or a substantial part of the business of, such Person.    For purposes of covenant compliance, the amount of any Investment shall be the amount actually   invested, without adjustment for subsequent increases or decreases in the value of such   Investment, net of any return of capital with respect to such Investment that has been repaid (and   actually received) in cash to such Person (to the extent such amount does not exceed the original   Investment).   “Involuntary Disposition” means any involuntary loss, damage or destruction of property,   or any involuntary condemnation, seizure or taking, by exercise of the power of eminent domain   or otherwise, or confiscation or requisition of use of property.   “IP Rights” has the meaning specified in Section 5.17.   “IP Security Agreement Supplement” has the meaning specified in the Security   Agreement.   “IRS” means the United States Internal Revenue Service.   “Laws” means, collectively, all applicable international, foreign, Federal, state and local   statutes, treaties, rules, guidelines, regulations, ordinances, codes and administrative or judicial   precedents or authorities, including the interpretation or administration thereof by any   Governmental Authority charged with the enforcement, interpretation or administration thereof,   and all applicable administrative orders, directed duties, requests, licenses, authorizations and   permits of, and agreements with, any Governmental Authority, in each case whether or not   having the force of law.   “L/C Facility” means the letter of credit facility not to exceed $15,000,000 in aggregate   face amount on terms and conditions satisfactory to the Required Lenders.    “Lender” means (a) at any time on or prior to the Closing Date, any Lender that has a   Commitment at such time and (b) at any time after the Closing Date, any Lender that holds   Loans at such time.    “Lending Office” means, as to any Lender, the office or offices of such Lender described   as such in such Lender’s Administrative Questionnaire, or such other office or offices as a   Lender may from time to time notify the Borrower and the Administrative Agent in writing.     

 

16   110446369 v18       “Lien” means any mortgage, deed of trust, pledge, hypothecation, collateral assignment,   deposit arrangement, encumbrance, lien (statutory or other), charge, or similar preference,   priority or other security interest or preferential arrangement in the nature of a security interest of   any kind or nature whatsoever (including any conditional sale or other title retention agreement,   any easement, right of way or other encumbrance on title to real property, and any financing   lease having substantially the same economic effect as any of the foregoing).   “Loan” means an advance made by any Lender under the Facility.   “Loan Documents” means, collectively, (a) this Agreement, (b) the Notes, (c) each   Guaranty, (d) the Collateral Documents, (e) the Final DIP Order, (f) the Commitment Letter, (g)   the Intercompany Subordination Agreement and (h) the Agent Fee Letter.   “Luxembourg” means the Grand Duchy of Luxembourg.   “Luxembourg Companies Register” means the Luxembourg Register of Commerce and   Companies (R.C.S Luxembourg).   “Luxembourg Guarantor” means GT Advanced Technologies Luxembourg S.à.r.l., a   private limited liability company (société à responsabilité limitée), incorporated under the laws   of Luxembourg, having a share capital of EUR 12,501, having its registered office at 7, rue   Robert Stümper, L-2557 Luxembourg, Grand Duchy of Luxembourg and registered with the   Luxembourg Register of Commerce and Companies (R.C.S. Luxembourg) under number B   164.807.   “Luxembourg Insolvency Event” means, the occurrence of a Luxembourg Insolvency   Proceeding.   “Luxembourg Insolvency Proceeding” means , in relation to the Luxembourg Guarantor   or any of its assets, any corporate action, legal proceedings or other procedure or step in relation   to bankruptcy (faillite), insolvency, judicial or voluntary liquidation (liquidation judiciaire ou   volontaire), composition with creditors (concordat préventif de faillite), moratorium or reprieve   from payment (sursis de paiement), controlled management (gestion contrôlée), fraudulent   conveyance (action paulienne), general settlement with creditors, reorganization or similar laws   affecting the rights of creditors generally.   "Luxembourg Receivables Pledge Agreement" means the Luxembourg law governed   receivables pledge agreement dated on or around the date hereof and made between the   Luxembourg Guarantor as pledgor and the Collateral Agent.     “Loan Parties” means, collectively, Borrower and each Guarantor.   “Majority Commitment Parties” has the meaning set forth in the Commitment Letter.   “Material Adverse Effect” means a material adverse change in, or material adverse effect   on, (i) the business, properties, condition (financial or otherwise), results of operations or   liabilities of the Borrower and its Subsidiaries, taken as a whole, other than any change, event or   occurrence, arising individually or in the aggregate, from (a) events leading up to the     

 

17   110446369 v18      commencement of proceedings under Chapter 11 of the Bankruptcy Code and (b) events that   would reasonably be expected to result from the filing or commencement of the Chapter 11   Cases or the announcement of the filing or commencement of the Chapter 11 Cases, (ii) the   ability of the Borrower or the Guarantors to perform their respective Obligations under this   Agreement or any Loan Document or (iii) the ability of any Agent and/or the Lenders to enforce   their rights and remedies under the Loan Documents.   “Material Contract” means any contract or other arrangement which if terminated could   reasonably be expected to have a Material Adverse Effect.    “Material Real Property” means fee owned real property, in each case with a fair market   value in excess of $2,000,000, including, without limitation, the New Hampshire Property.   “Maturity Date” means the earliest to occur of (a) July 27, 2016, (b) the Effective Date,   and (c) the acceleration of the Loans and termination of the Commitments in accordance with   Article VIII.    “Maximum Rate” has the meaning specified in Section 11.09.   “Mesa ASF Furnace” shall have the meaning set forth in the Apple Settlement   Agreement.   “Mesa Facility” means the facility leased by GTAT Corporation under the Amended and   Restated Facility Lease Agreement effective as of December 15, 2014 by and between GTAT   Corporation and Platypus Development LLC.   “Moody’s” means Moody’s Investors Service, Inc. and any successor thereto.   “Multiemployer Plan” means any employee benefit plan of the type described in   Section 4001(a)(3) of ERISA, to which Borrower or any ERISA Affiliate makes or is obligated   to make contributions, or during the preceding five plan years, has made or been obligated to   make contributions.   “Multiple Employer Plan” means a Plan which has two or more contributing sponsors   (including Borrower or any ERISA Affiliate) at least two of whom are not under common   control, as such a plan is described in Section 4064 of ERISA.   “Narrative Report” means, with respect to the financial statements for which such   narrative report is required, management’s discussion and analysis of the financial condition and   results of operations, in each case, for the applicable month, Fiscal Quarter or Fiscal Year and for   the period from the beginning of the then current Fiscal Year to the end of such period to which   such financial statements relate and comparison to and variances from the immediately preceding   period and Approved Budget.   “Net Cash Proceeds” means:    (a) in connection with any Disposition (other than (x) Dispositions   pursuant to Sections 7.05(a), (b), (c), (d), (e), (h), (j), (k), (l), (n), (p) or (q) and (y)     

 

18   110446369 v18      Dispositions of all or substantially all of the assets of Subsidiaries of the Borrower pursuant to   Sections 7.04(b)), 100% of the cash proceeds received by any Loan Party or any of its   Subsidiaries after the date of the execution of the Commitment Letter, whether from a single   transaction or a series of related transactions, net of the sum of (i) the principal amount of any   Indebtedness that is secured by the applicable asset and that is required to be repaid in   connection with such transaction (other than Indebtedness under the Loan Documents),   together with any applicable premium, penalty, interest and breakage costs, (ii) the reasonable   and customary out-of-pocket expenses incurred or, reasonably estimated at the time of such   Disposition to be incurred, by such Loan Party or such Subsidiary in connection with such   transaction to the extent paid to a Person that is not a Loan Party; provided that such expenses   are disclosed to the Advisors to Lenders and those Lenders willing to receive such   information on a confidential basis without any cleansing requirement on or prior to the   applicable prepayment of the Loans pursuant to Section 2.05(b); provided further that, if the   amount of any estimated expenses pursuant to this subclause (ii) exceeds the amount of   expenses actually required to be paid in cash in respect of such Disposition, the aggregate   amount of such excess shall constitute Net Cash Proceeds, (iii) taxes paid or, reasonably   estimated at the time of such Disposition to be payable, in connection with such Disposition   within two years of the date of the relevant Disposition (including taxes imposed on the   distribution or repatriation of any such Net Cash Proceeds), provided that such taxes are   disclosed to the Advisors to Lenders and those Lenders willing to receive such information on   a confidential basis without any cleansing requirement on or prior to the applicable   prepayment of the Loans pursuant to Section 2.05(b), provided further that, if the amount of   any estimated taxes pursuant to this subclause (iii) exceeds the amount of taxes actually   required to be paid in cash in respect of such Disposition, the aggregate amount of such excess   shall constitute Net Cash Proceeds, and (iv) amounts provided as a reserve, in accordance   with GAAP, against any liabilities under any indemnification obligations or purchase price   adjustment associated with such Disposition (provided that, to the extent and at the time any   such amounts are released from such reserve, such amounts shall constitute Net Cash   Proceeds); provided, that no such net cash proceeds received pursuant to this clause (a) shall   constitute Net Cash Proceeds unless the aggregate amount of all such net cash proceeds shall   exceed (x) to the extent received after the Closing Date, $12,500,000 in the aggregate, in   which case, such excess shall constitute Net Cash Proceeds and (y) to the extent received   between the execution of the Commitment Letter and the Closing Date, $5,000,000 in the   aggregate, in which case, such excess shall constitute Net Cash Proceeds; provided further   that, for the avoidance of doubt, proceeds from any Disposition permitted to be retained by the   Hong Kong Debtor pursuant to the Intercompany Agreement shall not constitute Net Cash   Proceeds.   (b) in connection with any Disposition permitted under Section 7.05(e),   100% of the cash proceeds received by any Loan Party or any of its Subsidiaries, whether   from a single transaction or a series of related transactions, net of the sum of fees and   expenses related to shipping and installation (to the extent payable to a Subsidiary of the   Borrower that is not a Loan Party so long as such fees and expenses shall be incurred in the   ordinary course of business and pursuant to arm’s length transactions) incurred, or reasonably   estimated at the time of such Disposition to be incurred, in connection with the Disposition of   such sold furnaces (other than, for the avoidance of doubt, Mesa wind-down and crating costs);   provided that any estimated expenses shall not exceed $26,000 per sold ASF Furnace (except     

 

19   110446369 v18      to the extent actually incurred) and all such fees and expenses related to shipping and   installation incurred or estimated to be incurred, in each case, as of the date of such   Disposition shall be disclosed to the Advisors to Lenders and those Lenders willing to receive   such information on a confidential basis without any cleansing requirement on or prior to the   applicable prepayment of the Loans pursuant to Section 2.05(b); provided further that, if the   amount of any estimated expenses pursuant to this clause (b) exceeds the amount of expenses   actually required to be paid in cash in respect of such Disposition, the aggregate amount of   such excess shall constitute Net Cash Proceeds; provided further that, for the avoidance of   doubt, proceeds from the Disposition of ASF Furnace permitted to be retained by the Hong   Kong Debtor pursuant to the Intercompany Agreement shall not constitute Net Cash Proceeds.    (c) in connection with the incurrence, issuance or sale of any Indebtedness   by any Loan Party or any of its Subsidiaries (other than all Indebtedness permitted to be   incurred under Section 7.02), 100% of the cash proceeds received by any Loan Party or any of   its Subsidiaries, net of any reasonable costs incurred in connection with such transaction, to   the extent paid or payable to non-Affiliates; including (i) underwriting discounts and   commissions, (ii) taxes, (iii) reasonable and customary out-of-pocket costs and expenses, in   each case, incurred by such Loan Party or such Subsidiary in connection therewith.   (d) in connection with any issuance or sale of Equity Interests (other than   issuance or sales to any officer, employee or director of the Borrower or its Subsidiaries), 100%   of the cash proceeds received by any Loan Party or any of its Subsidiaries, net of any   reasonable costs incurred in connection with such transaction, to the extent paid or payable to   non-Affiliates, including (i) reasonable out-of-pocket attorney’s fees, investment banking fees,   accountants’ fees, underwriting discounts, (ii) commissions and (iii) other reasonable and   customary out-of-pocket costs and expenses actually incurred by such Loan Party or such   Subsidiary in connection therewith.   (e) in connection with any Casualty Event, 100% of the cash insurance   proceeds received after the execution of the Commitment Letter by any Loan Party or any of   its Subsidiaries, net of any reasonable costs incurred in connection with such Casualty Event,   including (i) all reasonable out-of-pocket costs and expenses incurred in connection with the   collection of such proceeds, awards or other compensation and (ii) taxes paid or reasonably   estimated at the time of such Casualty Event to be payable within two years of the date of the   relevant Casualty Event as a result of any gain recognized in connection with such Casualty   Event (including taxes imposed on the distribution or repatriation of any such Net Cash   Proceeds), provided that such taxes are promptly disclosed to the Advisors to Lenders and   those Lenders willing to receive such information on a confidential basis without any   cleansing requirement on or prior to the applicable prepayment of the Loans pursuant to   Section 2.05(b); provided further that, if the amount of any estimated taxes pursuant to this   subclause (ii) exceeds the amount of taxes actually required to be paid in cash in respect of   such Casualty Event, the aggregate amount of such excess shall constitute Net Cash Proceeds.    Notwithstanding anything to the contrary in this clause (e), any such portion of the insurance   proceeds that (i) are intended to be applied (or are applied) to remediate or repair the ASF   Furnaces damaged by the May 26, 2015 fire at the Debtor’s Mesa Facility shall not be deemed   Net Cash Proceeds for purposes of Section 2.05(b) and (ii) are in relation to Mesa ASF   Furnaces that have suffered a total loss and are required to be applied to repay the Apple     

 

20   110446369 v18      Claim pursuant to the Apple Settlement Agreement shall not be deemed Net Cash Proceeds   for purposes of Section 2.05(b).     (f) in connection with any Extraordinary Receipts, 100% of the cash   proceeds received by any Loan Party or any of its Subsidiaries, net of any reasonable costs   incurred in connection with such Extraordinary Receipt, including all reasonable out-of-   pocket costs and expenses incurred in connection with the collection of such proceeds.   “New Hampshire Property” means the real property and improvements at 243-247 Daniel   Webster Highway, Merrimack, New Hampshire.   “Non-Consenting Lender” has the meaning specified in Section 11.01.   “Note” means a promissory note made by the Borrower in favor of a Lender evidencing   Loans made by such Lender, substantially in the form of Exhibit B.   “Obligations” means all obligations of every nature of each Loan Party and its   Subsidiaries from time to time owed to the Agent (including former Agent), the Lenders or any   of them, under this Agreement or any Loan Document, whether for principal, interest (including   interest which, but for the filing of a petition in bankruptcy with respect to such Loan Party,   would have accrued on any Obligation, whether or not a claim is allowed against such Loan   Party for such interest in the related bankruptcy proceeding), fees, expenses (including fees and   expenses of counsel), indemnification or otherwise and whether primary, secondary, direct,   indirect, absolute, contingent, fixed or otherwise, now existing or hereafter arising (including   obligations of performance).   “OFAC” means the Office of Foreign Assets Control of the U.S. Treasury Department.   “OFAC Sanctions Program” means (a) the Requirement of Law and Executive Orders   administered by OFAC, including but not limited to, Executive Order No. 13224, and (b) the list   of Specially Designated Nationals and Blocked Persons administered by OFAC, in each case, as   renewed, extended, amended or replaced.   “Organization Documents” means, (a) with respect to any corporation, the certificate or   articles of incorporation and the bylaws (or equivalent or comparable constitutive documents   with respect to any non-U.S. jurisdiction); (b) with respect to any limited liability company, the   certificate or articles of formation or organization and operating agreement (or equivalent or   comparable constitutive documents with respect to any non-U.S. jurisdiction); and (c) with   respect to any partnership, joint venture, trust or other form of business entity, the partnership,   joint venture or other applicable agreement of formation or organization and any agreement,   instrument, filing or notice with respect thereto filed in connection with its formation or   organization with the applicable Governmental Authority in the jurisdiction of its formation or   organization and, if applicable, any certificate or articles of formation or organization of such   entity.   “Original Commitment Letter” means the Commitment Letter dated as of March 17,   2015 among the commitment parties party thereto and the Borrower.     

 

21   110446369 v18      “Original Commitment Letter Order” means the Order Pursuant to Bankruptcy Code   Sections 363(B) and 503(B) and Bankruptcy Rules 2002 and 6004(H) (A) Authorizing Debtors   to Pay Put Option Premium and Expenses to Certain Unaffiliated GT Noteholders in Connection   with Debtor in Possession Financing Commitment and (B) Approving Information Sharing   Obligations and Indemnity Thereunder entered by the Bankruptcy Court on March 20, 2015 at   Docket No. 1490.   “Other Connection Taxes” means, with respect to any Recipient, Taxes imposed as a   result of a present or former connection between such Recipient and the jurisdiction imposing   such Tax (other than connections arising solely from such Recipient having executed, delivered,   become a party to, performed its obligations under, received payments under, received or   perfected a security interest under, engaged in any other transaction pursuant to or enforced any   Loan Document, or sold or assigned an interest in any Loan or Loan Document).   “Other Taxes” means all present or future stamp, court or documentary, intangible,   recording, filing or similar Taxes that arise from any payment made under, from the execution,   delivery, performance, enforcement or registration of, from the receipt or perfection of a security   interest under, or otherwise with respect to, any Loan Document, except any such Taxes that are   Other Connection Taxes imposed with respect to an assignment (other than an assignment made   pursuant to Section 3.06 or Section 11.13).   “Outstanding Amount” means, on any date, the aggregate outstanding principal amount   thereof after giving effect to any borrowings and prepayments or repayments of Loans, as the   case may be, occurring on such date.   “Participant” has the meaning specified in Section 11.06(e).   “Participant Register” has the meaning specified in Section 11.06(e).   “Patriot Act” has the meaning specified in Section 11.18.   “PBGC” means the Pension Benefit Guaranty Corporation.   “Pension Act” means the Pension Protection Act of 2006.   “Pension Funding Rules” means the rules of the Code and ERISA regarding minimum   required contributions (including any installment payment thereof) to Pension Plans and set forth   in, with respect to plan years ending prior to the effective date of the Pension Act, Section 412 of   the Code and Section 302 of ERISA, each as in effect prior to the Pension Act and, thereafter,   Section 412, 430, 431, 432 and 436 of the Code and Sections 302, 303, 304 and 305 of ERISA.   “Pension Plan” means any “employee pension benefit plan” (including a Multiple   Employer Plan or a Multiemployer Plan) that is maintained or is contributed to by Borrower and   any ERISA Affiliate and is either covered by Title IV of ERISA or is subject to the minimum   funding standards under Section 412 of the Code.   “Permitted Acquisitions” means the purchase or other acquisition by a Person or its   Subsidiaries of all or substantially all of the assets of (or any division or business line of) any     

 

22   110446369 v18      other Person (other than a Subsidiary), or the purchase or other acquisition (whether by means of   a merger, consolidation, or otherwise) by a Person or its Subsidiaries of all (other than directors’   qualifying shares) of the Equity Interests (or all of the remaining Equity Interests not then owned   by such Person) of any other Person (other than a Subsidiary); provided that such Permitted   Acquisition is approved by the Required Lenders in their sole discretion.   “Permitted Encumbrances” means, with respect to any real property, easements, rights of   way, minor encroachments, title restrictions, zoning restrictions which (i) exist on the date of the   acquisition of the property, directly or indirectly (and are not created in contemplation thereof) or   (ii) do not materially impair the use of the real property subject thereto for the purpose for which   it is used.   “Permitted Hong Kong Debtor Transfer” means a transfer of cash or Cash Equivalents by   any Hong Kong Debtor to Luxembourg Guarantor (including by means of an Investment) in an   amount not to exceed such amount as is required by, and the proceeds of which are used within 2   Business Days after the receipt, solely for, (i) Luxembourg Guarantor to pay to the Borrower or   any of its Domestic Subsidiaries that is a Loan Party that portion of R&D Costs which are   allocated to the Hong Kong Debtor pursuant to the Borrower’s accounting procedures or (ii)   Luxembourg Guarantor to pay, or for Luxembourg Guarantor to distribute to the Borrower or any   of its Domestic Subsidiaries that is a Loan Party to pay, in each case, its respective Tax liability   attributable to income recognized by Luxembourg Guarantor in respect of its interest in Hong   Kong Debtor or attributable to Subpart F income (as defined in Section 952 of the Code)   recognized by the Borrower or any of its Domestic Subsidiaries that is a Loan Party in respect of   its interest in Luxembourg Guarantor or the Hong Kong Debtor; provided that, in each case,   within 2 Business Days of the making of such transfer, the Luxembourg Guarantor shall further   transfer such amounts to the Borrower or any of its Domestic Subsidiaries that is a Loan Party.   “Permitted Liens” means those Liens permitted pursuant to Section 7.01.   “Person” means any natural person, corporation, limited liability company, trust, joint   venture, association, company, partnership, Governmental Authority or other entity.   “Petition Date” has the meaning specified in the introductory paragraph hereto.   “PIK Portion” has the meaning specified in Section 2.08.   “Plan” means any employee benefit plan within the meaning of Section 3(3) of ERISA   (including a Pension Plan), maintained for employees of Borrower or any ERISA Affiliate or any   such Plan to which Borrower or any ERISA Affiliate is required to contribute on behalf of any of   its employees.   “Platform” has the meaning specified in Section 6.02.   “Pledged Debt” has the meaning given to the term “Pledged Debt” in the Security   Agreement.   “Pledged Equity” has the meaning given to the term “Pledged Equity” in the Security   Agreement.     

 

23   110446369 v18      “primary obligor” has the meaning assigned in the definition of the term Guarantee.   “Projections” has the meaning specified in Section 5.15.   “Public Lender” has the meaning specified in Section 6.02.   “Qualified Equity Interests” means any Equity Interests that are not Disqualified Equity   Interests.   “R&D Costs” means research and development costs incurred by a Loan Party or Hong   Kong Debtor.   “Real Property” shall mean, collectively, all right, title and interest (including any   leasehold estate) in and to any and all parcels of or interests in real property owned in fee or   leased by any Loan Party, together with, in each case, all easements, hereditaments and   appurtenances relating thereto, all improvements and appurtenant fixtures incidental to the   ownership or lease thereof.   “Recipient” means the Administrative Agent, any Lender or any other recipient of any   payment to be made by or on account of any obligation of any Loan Party pursuant to a Loan   Document hereunder under this Agreement.   “Reclamation Dispositions” means Dispositions pursuant to reclamation claims approved   by the Bankruptcy Court pursuant to the Order Establishing Procedures for the Assertion,   Resolution and Satisfaction of Reclamation Claims on October 9, 2014 at Docket No. 94.   “Register” has the meaning specified in Section 11.06(d).   “Related Parties” means, with respect to any Person, such Person’s Affiliates and the   partners, directors, officers, employees, controlling persons, agents, trustees, representatives,   attorneys and advisors of such Person and of such Person’s Affiliates.   “Reportable Event” means any of the events set forth in Section 4043(c) of ERISA, other   than events for which the 30 day notice period has been waived.   “Required Lenders” means, as of any date of determination, Lenders holding more than   50% of the aggregate amount of the Loans and Commitments under the Facility on such date;   provided that, for purposes of any amendment, consent or waiver which affects the cash   disbursements variance covenant set forth in Section 7.10(b), consent of the Lenders holding   more than 60% of the aggregate amount of the Loans and Commitments under the Facility on   such date shall be required.   “Resignation Effective Date” has the meaning specified in Section 9.06(a).   “Responsible Officer” means the chief executive officer, president, chief financial officer,   treasurer, assistant treasurer, any authorized signatory appointed by the board of managers   (conseil de gérance), any manager (gérant) or controller of a Loan Party and solely for purposes   of the delivery of certificates pursuant to Section 4.01, the secretary or any assistant secretary of     

 

24   110446369 v18      a Loan Party.  Any document delivered hereunder that is signed by a Responsible Officer of a   Loan Party shall be conclusively presumed to have been authorized by all necessary corporate,   partnership and/or other action on the part of such Loan Party and such Responsible Officer shall   be conclusively presumed to have acted on behalf of such Loan Party.   “Restricted Payment” means any dividend or other distribution (whether in cash,   securities or other property) with respect to any capital stock or other Equity Interest of any   Person or any of its Subsidiaries, or any payment (whether in cash, securities or other property),   including any sinking fund or similar deposit, on account of the purchase, redemption,   retirement, defeasance, acquisition, cancellation or termination of any such capital stock or other   Equity Interest, or on account of any return of capital to any Person’s stockholders, partners or   members (or the equivalent of any thereof), or any option, warrant or other right to acquire any   such dividend or other distribution or payment.   “Sanction(s)” means any international economic sanction administered or enforced by   OFAC.   “S&P” means Standard & Poor’s Financial Services LLC, a subsidiary of The McGraw-   Hill Companies, Inc., and any successor thereto.   “SEC” means the Securities and Exchange Commission, or any Governmental Authority   succeeding to any of its principal functions.   “Secured Parties” means, collectively, the Administrative Agent, the Collateral Agent, the   Lenders, each co-agent or sub-agent appointed by the Administrative Agent from time to time   pursuant to Section 9.05 and the other Persons the Obligations owing to which are or are   purported to be secured by the Collateral under the terms of the Collateral Documents.   “Securities Account Control Agreement” has the meaning specified in the Security   Agreement.   “Security Agreement” has the meaning specified in Section 4.01(a)(iii).   “Security Agreement Supplement” has the meaning specified in the Security Agreement.   “Subsidiary” of a Person means a corporation, partnership, limited liability company or   other business entity of which a majority of the shares of securities or other interests having   ordinary voting power for the election of directors or other governing body (other than securities   or interests having such power only by reason of the happening of a contingency) are at the time   beneficially owned, or the management of which is otherwise controlled, directly, or indirectly   through one or more intermediaries, or both, by such Person.  Unless otherwise specified, all   references herein to a “Subsidiary” or to “Subsidiaries” shall refer to a Subsidiary or Subsidiaries   of Borrower.   “Superpriority Claim” means a claim against a Loan Party in any of the Chapter 11 Cases   that is a superpriority administrative expense claim having priority over any or all administrative   expenses and other claims of the kind specified in, or otherwise arising or ordered under, any   sections of the Bankruptcy Code (including, without limitation, sections 105, 326, 328, 330, 331,     

 

25   110446369 v18      503(b), 507(a), 507(b), 546, 726, 1113 and/or 1114 thereof), whether or not such claim or   expenses may become secured by a judgment Lien or other non-consensual Lien, levy or   attachment subject to the Carve-Out in all respects.    “Swap Contract” means (a) any and all rate swap transactions, basis swaps, credit   derivative transactions, forward rate transactions, commodity swaps, commodity options,   forward commodity contracts, equity or equity index swaps or options, bond or bond price or   bond index swaps or options or forward bond or forward bond price or forward bond index   transactions, interest rate options, forward foreign exchange transactions, cap transactions, floor   transactions, collar transactions, currency swap transactions, cross-currency rate swap   transactions, currency options, spot contracts, or any other similar transactions or any   combination of any of the foregoing (including any options to enter into any of the foregoing),   whether or not any such transaction is governed by or subject to any master agreement, and   (b) any and all transactions of any kind, and the related confirmations, which are subject to the   terms and conditions of, or governed by, any form of master agreement published by the   International Swaps and Derivatives Association, Inc., any International Foreign Exchange   Master Agreement, or any other master agreement (any such master agreement, together with   any related schedules, a “Master Agreement”), including any such obligations or liabilities under   any Master Agreement.   “Swap Termination Value” means, in respect of any one or more Swap Contracts, after   taking into account the effect of any legally enforceable netting agreement relating to such Swap   Contracts, (a) for any date on or after the date such Swap Contracts have been closed out and   termination value(s) determined in accordance therewith, such termination value(s), and (b) for   any date prior to the date referenced in clause (a), the amount(s) determined as the mark-to-   market value(s) for such Swap Contracts, as determined based upon one or more mid-market or   other readily available quotations provided by any recognized dealer in such Swap Contracts   (which may include a Lender or any Affiliate of a Lender).    “Synthetic Debt” means, with respect to any Person as of any date of determination   thereof, all obligations of such Person in respect of transactions entered into by such Person that   are intended to function primarily as a borrowing of funds (including any minority interest   transactions that function primarily as a borrowing) but are not otherwise included in the   definition of “Indebtedness” or as a liability on the consolidated balance sheet of such Person   and its Subsidiaries in accordance with GAAP.   “Synthetic Lease Obligation” means the monetary obligation of a Person under (a) a so-   called synthetic, off-balance sheet or tax retention lease, or (b) an agreement for the use or   possession of property (including sale and leaseback transactions), in each case, creating   obligations that do not appear on the balance sheet of such Person.   “Tax Compliance Certificate” has the meaning specified in Section 3.01(e)(ii)(B)(III).   “Taxes” means all present or future taxes, levies, imposts, duties, deductions, withholding   (including backup withholding), assessments, fees or other charges imposed by any   Governmental Authority, including any interest, additions to tax or penalties applicable thereto.     

 

26   110446369 v18      “Threshold Amount” means $1,000,000.   “Transaction” means, collectively, (a)  the execution, delivery and performance by the   Borrower and each other Loan Party of the Loan Documents to which it is a party, (b) the Loans   hereunder and the use of proceeds of such Loans, (c) the granting of the Liens pursuant to the   Collateral Documents, (d) the Guaranty provided by the Guarantors and (e) any other   transactions entered into by the Loan Parties in connection with the foregoing, to the extent   permitted under the Loan Documents.    “UCC” means the Uniform Commercial Code as in effect in the State of New York;   provided that, if perfection or the effect of perfection or non-perfection or the priority of any   security interest in any Collateral is governed by the Uniform Commercial Code as in effect in a   jurisdiction other than the State of New York, “UCC” means the Uniform Commercial Code as   in effect from time to time in such other jurisdiction for purposes of the provisions hereof   relating to such perfection, effect of perfection or non-perfection or priority.   “Unfunded Amount” has the meaning specified in Section 2.01.   “U.S. Person” means any Person that is a “United States Person” as defined in Section   7701(a)(30) of the Code.   “United States” and “U.S.” mean the United States of America.   “Variance Report” has the meaning specified in Section 6.01(c).   “Wholly Owned Subsidiary” means as to any Person, any other Person, all of the Equity   Interest of which (other than directors’ qualifying shares required by law) is owned by such   Person directly and/or through other Wholly Owned Subsidiaries.   1.02 Other Interpretive Provisions.  With reference to this Agreement and each other   Loan Document, unless otherwise specified herein or in such other Loan Document:   (a) The definitions of terms herein shall apply equally to the singular and   plural forms of the terms defined.  Whenever the context may require, any pronoun shall   include the corresponding masculine, feminine and neuter forms.  The words “include,”   “includes” and “including” shall be deemed to be followed by the phrase “without limitation.”    The word “will” shall be construed to have the same meaning and effect as the word “shall.”    Unless the context requires otherwise, (i) any definition of or reference to any agreement,   instrument or other document (including any Organization Document) shall be construed as   referring to such agreement, instrument or other document as from time to time amended,   supplemented or otherwise modified (subject to any restrictions on such amendments,   supplements or modifications set forth herein or in any other Loan Document), (ii) any   reference herein to any Person shall be construed to include such Person’s successors and   assigns, (iii) the words “herein,” “hereof” and “hereunder,” and words of similar import when   used in any Loan Document, shall be construed to refer to such Loan Document in its entirety   and not to any particular provision thereof, (iv) all references in a Loan Document to Articles,   Sections, Preliminary Statements, Exhibits and Schedules shall be construed to refer to   Articles and Sections of, and Preliminary Statements, Exhibits and Schedules to, the Loan     

 

27   110446369 v18      Document in which such references appear, (v) any reference to any law, rule or regulation   shall include all statutory and regulatory provisions consolidating, amending, replacing or   interpreting such law, rule or regulation and any reference to any law or regulation shall,   unless otherwise specified, refer to such law, rule or regulation as amended, modified or   supplemented from time to time, and (vi) the words “asset” and “property” shall be construed   to have the same meaning and effect and to refer to any and all tangible and intangible assets   and properties, including cash, securities, accounts and contract rights.   (b) In the computation of periods of time from a specified date to a later   specified date, the word “from” means “from and including;” the words “to” and “until” each   mean “to but excluding;” and the word “through” means “to and including.”   (c) Section headings herein and in the other Loan Documents are included   for convenience of reference only and shall not affect the interpretation of this Agreement or   any other Loan Document.   (d) Without prejudice to the generality of any provision of this Agreement,   to the extent this Agreement relates to the Luxembourg Guarantor a reference to: (a) a   receiver, administrative receiver, administrator, trustee, custodian, sequestrator, conservator or   similar officer appointed for the reorganization or liquidation of the business of a person   includes, without limitation, a juge délégué, commissaire, juge-commissaire, mandataire ad   hoc, administrateur provisoire, liquidateur or curateur; (b) a lien or security interest includes   any hypothèque, nantissement, gage, privilège, sûreté réelle, droit de rétention and any type of   security in rem (sûreté réelle) or agreement or arrangement having a similar effect and any   transfer of title by way of security; (c) a person being unable to pay its debts includes that   person being in a state of cessation de paiements; (d) creditors process means an executory   attachment (saisie exécutoire) or conservatory attachment (saisie conservatoire); (e) a   guarantee includes any garantie which is independent from the debt to which it relates and   excludes any suretyship (cautionnement) within the meaning of Articles 2011 and seq. of the   Luxembourg Civil Code; (f) by-laws or constitutional documents includes its up-to-date   (restated) articles of association (statuts coordonnés); and (g) a director includes an   administrateur or a gérant.   1.03 Accounting Terms.     (a) Generally.  All accounting terms not specifically or completely defined   herein shall be construed in conformity with, and all financial data (including financial ratios   and other financial calculations) required to be submitted pursuant to this Agreement shall be   prepared in conformity with, GAAP applied on a consistent basis, as in effect from time to   time.     (b) Changes in GAAP.  If at any time any change in GAAP (including a   conversion to IFRS as described below) or in the application thereof would affect the   computation of any financial ratio or requirement set forth in any Loan Document, and either   Borrower or the Required Lenders shall so request, the Administrative Agent, the Lenders and   Borrower shall negotiate in good faith to amend such ratio or requirement to preserve the   original intent thereof in light of such change in GAAP (subject to the approval of the     

 

28   110446369 v18      Required Lenders); provided that, until so amended, (i) such ratio or requirement shall   continue to be computed in accordance with GAAP prior to such change therein and   (ii) Borrower shall provide to the Administrative Agent and the Lenders financial statements   and other documents required under this Agreement or as reasonably requested hereunder   setting forth a reconciliation between calculations of such ratio or requirement made before   and after giving effect to such change in GAAP.  If Borrower notifies the Administrative   Agent that it is required to report under IFRS or has elected to do so through an early-adoption   policy, “GAAP” shall mean international financial reporting standards pursuant to IFRS   (provided that after such conversion, Borrower cannot elect to report under U.S. generally   accepted accounting principles).   1.04 Rounding.  Any financial ratios required to be maintained by the Loan Parties   pursuant to this Agreement shall be calculated by dividing the appropriate component by the   other component, carrying the result to one place more than the number of places by which such   ratio is expressed herein and rounding the result up or down to the nearest number (with a   rounding-up if there is no nearest number).   1.05 Times of Day.  Unless otherwise specified, all references herein to times of day   shall be references to Eastern time (daylight or standard, as applicable).   1.06 Currency Equivalents Generally.  For purposes of any determination under Article   VI, Article VII or Article VIII or any determination under any other provision of this Agreement   expressly requiring the use of a current exchange rate, all amounts incurred, outstanding or   proposed to be incurred or outstanding in currencies other than Dollars shall be translated into   Dollars at currency exchange rates in effect on the date of such determination; provided,   however, that for purposes of determining compliance with Article VII with respect to the   amount of any Indebtedness, Investment, Disposition or Restricted Payment in a currency other   than Dollars, no Default or Event of Default shall be deemed to have occurred solely as a result   of changes in rates of exchange occurring after the time such Indebtedness or Investment is   incurred or Disposition or Restricted Payment made; provided that, for the avoidance of doubt,   the foregoing provisions of this Section 1.06 shall otherwise apply to such Sections, including   with respect to determining whether any Indebtedness or Investment may be incurred or   Disposition or Restricted Payment made at any time under such Sections.  Notwithstanding   anything to the contrary herein, for purposes of determining compliance with Section 7.17(e) and   Section 7.17(f), with respect to the amount of cash and Cash Equivalents in a currency other than   Dollars, no Default or Event of Default shall be deemed to have occurred solely as a result of   changes in rates of exchange.   ARTICLE II   THE COMMITMENTS AND LOANS   2.01 The Loans.     (a) Subject to the terms and conditions set forth herein, each Lender   severally agrees to make a single loan in Dollars to the Borrower on the Closing Date in an   amount equal to the Commitment of such Lender (and not to exceed such Lender’s Applicable   Percentage of the aggregate Commitments).  The Loans shall be made simultaneously by the     

 

29   110446369 v18      Lenders in accordance with their respective Applicable Percentage, provided that the   aggregate principal amount of Loans outstanding shall not exceed the aggregate principal   amount of the Commitments at any time.     (b) In the event that any Lender fails to fund all or a portion of such   Lender’s Applicable Percentage (the “Unfunded Amount”) and the Borrower delivers a notice   to the Backstop Lenders within one (1) Business Day following the Closing Date (any such   Lender, a “Defaulting Lender”), the Backstop Lenders shall, ratably in accordance with their   Applicable Percentage, fund such Unfunded Amount within three (3) Business Days   following receipt of such notice; provided that no Backstop Lender shall be required to fund   Loans in the aggregate amount (including the Loans funded on the Closing Date pursuant to   clause (a) above and this clause (b)) in excess of the amount set forth on Schedule 2.01(A)1.    Amounts borrowed under this Section 2.01 and repaid or prepaid may not be reborrowed.     2.02 Loans.     (a) Each Loan shall be made upon the Borrower’s irrevocable notice to the   Administrative Agent, which may be given by telephone, facsimile or other electronic   submission.  Such notice must be received by the Administrative Agent not later than 12:00   noon four (4) Business Days prior to the Closing Date.  Each telephonic notice by the   Borrower pursuant to this Section 2.02(a) must be confirmed promptly by delivery to the   Administrative Agent of a written Borrowing Notice, appropriately completed and signed by a   Responsible Officer of the Borrower within one (1) Business Day of such telephonic notice.    Each Borrowing Notice (whether telephonic or written) shall specify (i) the requested date of   the Loans and (ii) the principal amount of Loans to be borrowed.     (b) Following receipt of a Borrowing Notice, the Administrative Agent   shall promptly notify the Lender of the amount of its Applicable Percentage.  Each Lender, on   the Closing Date or, if any Lender is a Defaulting Lender, on such later date as specified in   Section 2.01, shall remit 97.00% of the principal amount equal to its Applicable Percentage.    Upon satisfaction of the conditions set forth in Section 4.01, the Administrative Agent shall   make all funds so received available to the Borrower by wire transfer of such funds in   accordance with instructions provided to (and reasonably acceptable to) the Administrative   Agent by the Borrower.  For the avoidance of doubt, interest shall accrue on 100% of the   principal amount of the Loans.   2.03 Put Option Premium.     (a) On the Closing Date, the Borrower shall pay the Backstop Lenders, in   cash, ratably in accordance with their backstop commitments, 3.0% of the initial aggregate   principal amount of all Loans funded on the Closing Date (the “Put Option Premium”) (it   being understood that the Put Option Premium has been fully earned upon the entry of the   Original Commitment Letter Order); provided that no such amount shall be paid to any   Backstop Lender that is a Defaulting Lender; provided, further, that the Put Option Premium   which would have been allocated to any such Backstop Lender that is a Defaulting Lender                                                      1 Schedule will be 1.316 times such Backstop Lender’s commitment under the Commitment Letter     

 

30   110446369 v18      shall be reallocated to the other Backstop Lenders based on the amount of the Unfunded   Amount provided by such Backstop Lenders.  For the avoidance of doubt, the pro rata share   of the Put Option Premium payable to each Backstop Lender shall be calculated based upon   the commitments set forth in the Original Commitment Letter annexed to the Original   Commitment Letter Order.   (b) On the Closing Date, the Borrower shall pay the Backstop Lenders,   ratably in accordance with their backstop commitments under the Commitment Letter, 1.04%   of the initial aggregate principal amount of all Loans funded on the Closing Date (the   “Extension Put Option Premium”); provided that (i) 24% of the Extension Put Option   Premium shall be added to the principal amount of the Loans and (ii) 76% of the Extension   Put Option Premium shall be paid, in cash, to the Backstop Lenders; provided, further, that no   such amount shall be paid to any Backstop Lender that is a Defaulting Lender; provided,   further, that the Extension Put Option Premium which would have been allocated to any such   Backstop Lender that is a Defaulting Lender shall be reallocated to the other Backstop   Lenders based on the amount of the Unfunded Amount provided by such Backstop Lenders.    For the avoidance of doubt, the Extension Put Option Premium shall amend and supersede the   Extension Put Option Premium approved by the order of the Bankruptcy Court entered on   May 12, 2015 Docket No. 1807.   2.04 Warrants. The Borrower shall issue, or cause to be issued, warrants to the Lenders   on terms and conditions set forth in Final DIP Order.   2.05 Prepayments.    (a) Optional.  The Borrower may, upon notice to the Administrative Agent,   at any time or from time to time voluntarily prepay the Loans in whole or in part without   premium or penalty; provided that (A) such notice must be received by the Administrative   Agent not later than 12:00 noon three (3) Business Days prior to any date of prepayment of;   and (B) any prepayment of Loans shall be in a principal amount of $1,000,000 or a whole   multiple of $500,000 in excess thereof; or, in each case, if less, the entire principal amount   thereof then outstanding.  Each such notice shall specify the date and amount of such   prepayment.  The Administrative Agent will promptly notify each Lender of its receipt of   each such notice, and of the amount of such Lender’s ratable portion of such prepayment   (based on such Lender’s Applicable Percentage).  If such notice is given by the Borrower, the   Borrower shall make such prepayment and the payment amount specified in such notice shall   be due and payable on the date specified therein.  Any prepayment of a Loan shall be   accompanied by all accrued interest on the amount prepaid, together with any additional   amounts required pursuant to Section 3.03.     (b) Mandatory.     (i) Without limiting Section 2.07(b), within three (3) Business Days of receipt   by any Loan Party and/or any of its Subsidiaries of any Net Cash Proceeds, other than the   Net Cash Proceeds described in clause (b) of the definition of Net Cash Proceeds, the   Borrower shall apply, or cause to be applied, payments in an amount equal to any such   Net Cash Proceeds, all in accordance with Section 2.05(c). Nothing contained in this     

 

31   110446369 v18      Section 2.05(b) shall permit the Borrower or any of its Subsidiaries to sell or otherwise   dispose of any assets other than in accordance with Section 7.05; and   (ii) Within three (3) Business Days of receipt by any Loan Party and/or any of   its Subsidiaries of any Net Cash Proceeds described in clause (b) of the definition of Net   Cash Proceeds prior to a DIP Foreclosure, the Borrower shall apply or cause to be applied,   payments in an amount equal to the Net Cash Proceeds received by the Borrower or any   of its Subsidiaries in the following order: first, in an amount equal to the applicable Apple   Repayment Amount, or if applicable, the Apple Reduced Repayment Amount, to pay the   Apple Claim, and second, with respect to 20% of any remaining Net Cash Proceeds (x)   retained by the Loan Parties pursuant to the Intercompany Agreement, if the   Intercompany Agreement is applicable to such Net Cash Proceeds or (y) received by the   Loan Parties, if the Intercompany Agreement is not applicable to such Net Cash Proceeds   (in each case, after giving effect to the “first” clause), to prepay the Loans, provided that,   upon a DIP Foreclosure, (x) with respect to any sale of any “ASF Furnace” (as such term   is defined in the Apple Settlement Agreement) that is subject to the Apple Security   Interest, the Net Cash Proceeds from such sale shall be applied, first, to payment of that   portion of the Obligations constituting fees, indemnities, expenses and other amounts   (including fees, charges and disbursements of counsel to the Administrative Agent and   amounts payable under this Article III) payable to the Administrative Agent in its   capacity as such, second, to repay all accrued and unpaid interest, fees, expenses and   other Obligations (including any interest, fees or put option premium paid in kind, but   other than any initial principal amount), third, to repay the initial principal amount of the   Loans in an aggregate amount not to exceed $95,000,000, fourth, to repay the Apple   Claim, and fifth, any other Obligations and (y) with respect to any sale of any other ASF   Furnace, the Net Cash Proceeds from such sale shall be applied to repay the outstanding   Obligations.     (c) Application of Prepayment.  Each optional and mandatory prepayment   of the Loans pursuant to Section 2.05(a) and Section 2.05(b) shall be accompanied by accrued   interest on the principal amount being prepaid to the date of prepayment.  Each prepayment of   the Loans shall be applied on a pro rata basis to the outstanding Loans. For the avoidance of   doubt, optional and mandatory prepayments of Loans may not be re-borrowed.    2.06 Termination of Commitment.  The Aggregate Commitments shall be   automatically and permanently reduced to zero on the date of the funding of the Loans.    2.07 Repayment of Loans.     (a) The Borrower shall repay on the Maturity Date to the Administrative   Agent for the benefit of the Lenders the aggregate principal amount of all Loans and all other   Obligations outstanding as of the Maturity Date (which amounts shall be reduced as a result of   the application of prepayments in accordance with Section 2.05).   (b) Immediately upon the sale of all or substantially all the Equity Interests   of the Borrower or the Disposition of all or substantially all of the assets of the Borrower and   its Subsidiaries prior to the Effective Date, the Borrower shall repay to the Administrative     

 

32   110446369 v18      Agent for the benefit of the Lenders the aggregate amount of all Loans then outstanding, all   other outstanding Obligations and a premium in an amount equal to 1.5% of the principal   amount of the Loans then outstanding.   2.08 Interest.     (a) Subject to the provisions of Section 2.08(b), the Loans shall bear   interest on the outstanding principal amount thereof at a rate per annum equal to the   Applicable Rate, provided that any portion of the interest (including the interest at the Default   Rate) payable in kind (such portion, the “PIK Portion”) shall accrue and be capitalized and be   added to the aggregate principal balance of the Loans in arrears on each Interest Payment Date;   provided, further, the Borrower may elect to pay all or a portion of the PIK Portion in cash by   delivering a certificate to the Administrative Agent on or prior to the date that is three (3)   Business Days prior to the date such payment is due, in which case the Borrower shall pay all   or such portion of the PIK Portion, as the case may be, in cash.    (b) Upon the occurrence and during the continuance of an Event of   Default, the principal amount of all Loans outstanding and, to the extent permitted by   applicable law, any interest payments on the Loans or any fees or other amounts owed   hereunder, shall thereafter bear interest at the Default Rate.  Payment or acceptance of the   increased rates of interest provided for in this Section 2.08 is not a permitted alternative to   timely payment and shall not constitute a waiver of any Event of Default or otherwise   prejudice or limit any rights or remedies of any Agent or any Lender.    (c) Interest on the Loans shall be due and payable in arrears on each   Interest Payment Date and at such other times as may be specified herein.  Interest hereunder   shall be due and payable in accordance with the terms hereof before and after judgment.   2.09 Fees.  The Borrower shall pay all fees and expenses set forth in the Agent Fee   Letter at the times when such payments are due and payable.    2.10 Computation of Interest and Fees.  All computations of interest and fees   hereunder shall be computed on the basis of a year of 360 days and actual days elapsed.  Interest   shall accrue for the day on which the Loan is made, and shall not accrue on a Loan for the day on   which the Loan or such portion is paid.  Each determination by the Administrative Agent of an   interest rate or fee hereunder shall be conclusive and binding for all purposes, absent manifest   error.     2.11 Evidence of Debt.  The Loans shall be evidenced by one or more accounts or   records maintained by such Lender and by the Administrative Agent (including, in accordance   with Section 11.06(d)) in the ordinary course of business.  The accounts or records maintained by   the Administrative Agent (including, in accordance with Section 11.06(d)) and each Lender shall   be conclusive absent manifest error of the amount of the Loans made by the Lenders to the   Borrower and the interest and payments thereon.  Any failure to so record or any error in doing   so shall not, however, limit or otherwise affect the obligation of the Borrower hereunder to pay   any amount owing with respect to the Obligations in respect of the Loans.  In the event of any   conflict between the accounts and records maintained by any Lender and the accounts and     

 

33   110446369 v18      records of the Administrative Agent (including, in accordance with Section 11.06(d)) in respect   of such matters, the accounts and records of the Administrative Agent shall control in the absence   of manifest error.  Upon the request of any Lender, the Borrower shall execute and deliver to   such Lender a Note, which shall evidence such Lender’s Loans in addition to such accounts or   records.  Each Lender may attach schedules to its Note and endorse thereon the date and maturity   of its Loans and payments with respect thereto.  In the event of a conflict between the records   maintained by the Administrative Agent and the principal amount stated on a Note, the records of   the Administrative Agent shall control.   2.12 Payments Generally; Administrative Agent’s Clawback.     (a) General.  All payments to be made by any of the Borrower shall be   made without condition or deduction for any counterclaim, defense, recoupment or setoff.    Except as otherwise expressly provided herein, all payments by the Borrower hereunder shall   be made to the Administrative Agent, for the account of the respective Lenders to which such   payment is owed, at the Administrative Agent’s Office in Dollars and in immediately   available funds not later than 2:00 p.m. on the date specified herein.  The Administrative   Agent will promptly distribute to each Lender its Applicable Percentage (or other applicable   share as provided herein) of such payment as received by wire transfer to such Lender’s   Lending Office.  All payments received by the Administrative Agent after 2:00 p.m. shall be   deemed received on the next succeeding Business Day and any applicable interest or fee shall   continue to accrue.  If any payment to be made by a Borrower shall come due on a day other   than a Business Day, payment shall be made on the next following Business Day, and any   interest or fees, as the case may be, shall continue to accrue.   (b) (i)  Funding by Lenders; Presumption by Administrative Agent.  Unless   the Administrative Agent shall have received notice from a Lender prior to the proposed date   of any Loans that such Lender will not make available to the Administrative Agent such   Lender’s share of such Loans, the Administrative Agent may assume that such Lender has   made such share available on such date in accordance with Section 2.02 and may (but shall   not be obligated to), in reliance upon such assumption, make available to the Borrower a   corresponding amount.  In such event, if a Lender has not in fact made its share of the   applicable Loans available to the Administrative Agent, then the applicable Lender and the   Borrower severally agree to pay to the Administrative Agent forthwith on demand such   corresponding amount in immediately available funds with interest thereon, for each day from   and including the date such amount is made available to the Borrower to but excluding the   date of payment to the Administrative Agent, at (A) in the case of a payment to be made by   such Lender, the greater of the Federal Funds Rate and a rate determined by the   Administrative Agent in accordance with banking industry rules on interbank compensation,   plus any administrative, processing or similar fees customarily charged by the Administrative   Agent in connection with the foregoing, and (B) in the case of a payment to be made by any   the Borrower, the interest rate applicable to the Loans.  If the Borrower and such Lender shall   pay such interest to the Administrative Agent for the same or an overlapping period, the   Administrative Agent shall promptly remit to the Borrower the amount of such interest paid   by the Borrower for such period.  If such Lender pays its share of the applicable Loans to the   Administrative Agent, then the amount so paid shall constitute such Lender’s Loan included   in such Loans.  Any payment by the Borrower shall be without prejudice to any claim the     

 

34   110446369 v18      Borrower may have against a Lender that shall have failed to make such payment to the   Administrative Agent.   (ii) Payments by the Borrower; Presumptions by Administrative Agent.    Unless the Administrative Agent shall have received notice from a Borrower prior to the time at   which any payment is due to the Administrative Agent for the account of the Lenders hereunder   that the Borrower will not make such payment, the Administrative Agent may assume that the   Borrower has made such payment on such date in accordance herewith and may (but shall not be   obligated to), in reliance upon such assumption, distribute to the Lenders the amount due.  In   such event, if the Borrower has not in fact made such payment, then each of the Lenders   severally agrees to repay to the Administrative Agent forthwith on demand the amount so   distributed to such Lender in immediately available funds with interest thereon, for each day   from and including the date such amount is distributed to it to but excluding the date of payment   to the Administrative Agent, at the greater of the Federal Funds Rate and a rate determined by   the Administrative Agent in accordance with banking industry rules on interbank compensation.   A notice of the Administrative Agent to any Lender or the Borrower with respect to any   amount owing under this subsection (b) shall be conclusive, absent manifest error.   (c) Obligations of Lenders Several.  The obligations of the Lenders   hereunder to make Loans and to make payments pursuant to Section 11.04(c) are several and   not joint.  The failure of any Lender to make any Loan, to fund any such participation or to   make any payment under Section 11.04(c) on any date required hereunder shall not relieve   any other Lender of its corresponding obligation to do so on such date, and no Lender shall be   responsible for the failure of any other Lender to so make its Loan, to purchase its   participation or to make its payment under Section 11.04(c).   (d) Funding Source.  Nothing herein shall be deemed to obligate any   Lender to obtain the funds for any Loan in any particular place or manner or to constitute a   representation by any Lender that it has obtained or will obtain the funds for any Loan in any   particular place or manner.   (e) Insufficient Funds.  If at any time insufficient funds are received by and   available to the Administrative Agent to pay fully all amounts of principal, interest and fees   then due hereunder, such funds shall be applied (i) first, to the payment of that portion of the   Obligations constituting fees, indemnities, expenses and other amounts (including fees,   charges and disbursements of counsel to the Administrative Agent and amounts payable under   this Article II) payable to the Administrative Agent in its capacity as such, (ii) second, toward   payment of interest and fees then due hereunder, ratably among the parties entitled thereto in   accordance with the amounts of interest and fees then due to such parties, and (iii) third,   toward payment of principal then due hereunder, ratably among the parties entitled thereto in   accordance with the amounts of principal then due to such parties.   2.13 Sharing of Payments by Lenders.  If any Lender shall, by exercising any right of   setoff or counterclaim or otherwise, obtain payment in respect of (a) Obligations due and payable   to such Lender hereunder and under the other Loan Documents at such time in excess of its   ratable share (according to the proportion of (i) the amount of such Obligations due and payable     

 

35   110446369 v18      to such Lender at such time to (ii) the aggregate amount of the Obligations due and payable to all   Lenders hereunder and under the other Loan Documents at such time) of payments on account of   the Obligations due and payable to all Lenders hereunder and under the other Loan Documents at   such time obtained by all the Lenders at such time or (b) Obligations owing (but not due and   payable) to such Lender hereunder and under the other Loan Documents at such time in excess   of its ratable share (according to the proportion of (i) the amount of such Obligations owing (but   not due and payable) to such Lender at such time to (ii) the aggregate amount of the Obligations   (but not due and payable) to all Lenders hereunder and under the other Loan Parties at such time)   of payment on account of the Obligations in respect of such Facility owing (but not due and   payable) to all Lenders hereunder and under the other Loan Documents at such time obtained by   all of the Lenders at such time then the Lender receiving such greater proportion shall (a) notify   the Administrative Agent of such fact, and (b) purchase (for cash at face value) participations in   the Loans or make such other adjustments as shall be equitable, so that the benefit of all such   payments shall be shared by the Lenders ratably in accordance with the aggregate amount of   Obligations then due and payable to the Lenders or owing (but not due and payable) to the   Lenders, as the case may be, provided that:   (i) if any such participations are purchased and all or any portion of the   payment giving rise thereto is recovered, such participations shall be rescinded and the   purchase price restored to the extent of such recovery, without interest; and   (ii) the provisions of this Section 2.13 shall not be construed to apply to (A)   any payment made by or on behalf of a Borrower pursuant to and in accordance with the   express terms of this Agreement, or (B) any payment obtained by a Lender as   consideration for the assignment of or sale of a participation in any of its Loans to any   assignee or participant, other than an assignment to Borrower or Borrower’s Affiliates or   Subsidiaries (as to which the provisions of this Section shall apply); provided that and for   the avoidance of doubt no assignments or sale of participations to Borrower, Borrower’s   Affiliates or Subsidiaries are permitted.   The Borrower consents to the foregoing and agrees, to the extent it may effectively do so   under applicable law, that any Lender acquiring a participation pursuant to the foregoing   arrangements may exercise against the Borrower rights of setoff and counterclaim with respect to   such participation as fully as if such Lender were a direct creditor of the Borrower in the amount   of such participation.   ARTICLE III   TAXES, YIELD PROTECTION AND ILLEGALITY   3.01 Taxes.     (a) Payments Free of Taxes.  Any and all payments by or on account of any   obligation of any Loan Party under any Loan Document shall be made without deduction or   withholding for any Taxes, except as required by applicable Laws.  If any applicable Laws (as   determined in the good faith discretion of the Administrative Agent or a Loan Party, as   applicable) require the deduction or withholding of any Tax from any such payment by the   Administrative Agent or a Loan Party, then the Administrative Agent or such Loan Party shall     

 

36   110446369 v18      be entitled to make such deduction or withholding and shall timely pay the full amount   deducted or withheld to the relevant Governmental Authority in accordance with applicable   Laws, and if such Tax is an Indemnified Tax, then the sum payable by the applicable Loan   Party shall be increased as necessary so that after such deduction or withholding has been   made (including such deductions and withholdings applicable to additional sums payable   under this Section 3.01) the applicable Recipient receives an amount equal to the sum it would   have received had no such deduction or withholding been made.   (b) Payment of Other Taxes by the Borrower.  The Loan Parties shall   timely pay to the relevant Governmental Authority in accordance with applicable law, or at   the option of the Administrative Agent timely reimburse it for the payment of, any Other   Taxes.   (c) Tax Indemnifications by the Borrower.  Each of the Loan Parties shall   jointly and severally indemnify each Recipient, within 10 days after demand therefor, for the   full amount of any Indemnified Taxes (including Indemnified Taxes imposed or asserted on or   attributable to amounts payable under this Section 3.01) payable or paid by such Recipient or   required to be withheld or deducted from a payment to such Recipient and any reasonable   expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes   were correctly or legally imposed or asserted by the relevant Governmental Authority.  A   certificate as to the amount of such payment or liability delivered to the Borrower by a Lender   (with a copy to the Administrative Agent), or by the Administrative Agent on its own behalf   or on behalf of a Lender, shall be conclusive absent manifest error.   (d) Tax Indemnifications by the Lenders.  Each Lender shall severally   indemnify the Administrative Agent, within 10 days after demand therefor, for (x) any   Indemnified Taxes attributable to such Lender (but only to the extent that any Loan Party has   not already indemnified the Administrative Agent for such Indemnified Taxes and without   limiting the obligation of the Loan Parties to do so), (y)  any Taxes attributable to such   Lender’s failure to comply with the provisions of Section 11.06(e) relating to the maintenance   of a Participant Register and (z) any Excluded Taxes attributable to such Lender, in each case,   that are payable or paid by the Administrative Agent in connection with any Loan Document,   and any reasonable expenses arising therefrom or with respect thereto, whether or not such   Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority.    A certificate as to the amount of such payment or liability delivered to any Lender by the   Administrative Agent shall be conclusive absent manifest error.  Each Lender hereby   authorizes the Administrative Agent to set off and apply any and all amounts at any time   owing to such Lender under this Agreement or any other Loan Document or otherwise   payable by the Administrative Agent to the Lender from any other source against any amount   due to the Administrative Agent under this clause (ii).   (e) Evidence of Payments.  As soon as practicable, after any payment of   Taxes by the Borrower to a Governmental Authority as provided in this Section 3.01, the   Borrower shall deliver to the Administrative Agent the original or a certified copy of a receipt   issued by such Governmental Authority evidencing such payment, a copy of the return   reporting such payment or other evidence of such payment reasonably satisfactory to the   Administrative Agent.     

 

37   110446369 v18      (f) Status of Lenders; Tax Documentation.   (i) Any Lender that is entitled to an exemption from or reduction of   withholding Tax with respect to payments made under any Loan Document shall deliver   to the Borrower and the Administrative Agent, at the time or times reasonably requested   by the Borrower or the Administrative Agent, such properly completed and executed   documentation reasonably requested by the Borrower or the Administrative Agent as will   permit such payments to be made without withholding or at a reduced rate of   withholding.  In addition, any Lender, if reasonably requested by the Borrower or the   Administrative Agent, shall deliver such other documentation prescribed by applicable   Laws or reasonably requested by the Borrower or the Administrative Agent as will enable   the Borrower or the Administrative Agent to determine whether or not such Lender is   subject to backup withholding or information reporting requirements.  Notwithstanding   anything to the contrary in the preceding two sentences, the completion, execution and   submission of such documentation (other than such documentation set forth in   Section 3.01(f)(ii)(A), (ii)(B) and (ii)(D) below) shall not be required if in the Lender’s   reasonable judgment such completion, execution or submission would subject such   Lender to any material unreimbursed cost or expense or would materially prejudice the   legal or commercial position of such Lender.   (ii) Without limiting the generality of the foregoing, in the event that the   Borrower is a U.S. Person,   (A) any Lender that is a U.S. Person shall deliver to the Borrower and   the Administrative Agent on or prior to the date on which such Lender becomes a   Lender under this Agreement (and from time to time thereafter upon the   reasonable request of the Borrower or the Administrative Agent), executed copies   of IRS Form W-9 (or successor form) certifying that such Lender is exempt from   U.S. federal backup withholding tax;   (B) any Foreign Lender shall, to the extent it is legally entitled to do   so, deliver to the Borrower and the Administrative Agent (in such number of   copies as shall be requested by the recipient) on or prior to the date on which such   Foreign Lender becomes a Lender under this Agreement (and from time to time   thereafter upon the reasonable request of the Borrower or the Administrative   Agent), whichever of the following is applicable:   (1) in the case of a Foreign Lender claiming the benefits of an income   tax treaty to which the United States is a party (x) with respect to payments of   interest under any Loan Document, executed copies of IRS Form W-8BEN or W-   8BEN-E (or successor form) establishing an exemption from, or reduction of,   U.S. federal withholding Tax pursuant to the “interest” article of such tax treaty   and (y) with respect to any other applicable payments under any Loan Document,   IRS Form W-8BEN or W-8BEN-E (or successor form) establishing an exemption   from, or reduction of, U.S. federal withholding Tax pursuant to the “business   profits” or “other income” article of such tax treaty;     

 

38   110446369 v18      (2) executed copies of IRS Form W-8ECI;   (3) in the case of a Foreign Lender claiming the benefits of the   exemption for portfolio interest under Section 881(c) of the Code, (x) a certificate   substantially in the form of Exhibit F-1 to the effect that such Foreign Lender is   not a “bank” within the meaning of Section 881(c)(3)(A) of the Code, a “10   percent shareholder” of the Borrower within the meaning of   Section 881(c)(3)(B) of the Code, or a “controlled foreign corporation” described   in Section 881(c)(3)(C) of the Code (a “Tax Compliance Certificate”) and   (y) executed copies of IRS Form W-8BEN or W-8BEN-E (or successor form); or   (4) to the extent a Foreign Lender is not the beneficial owner, executed   copies of IRS Form W-8IMY (or successor form), accompanied by IRS Form W-   8ECI, IRS Form W-8BEN, a Tax Compliance Certificate substantially in the form   of Exhibit F-2 or Exhibit F-3, IRS Form W-9, and/or other certification   documents from each beneficial owner, as applicable; provided that if the Foreign   Lender is a partnership and one or more direct or indirect partners of such Foreign   Lender are claiming the portfolio interest exemption, such Foreign Lender may   instead provide a Tax Compliance Certificate substantially in the form of Exhibit   F-4 on behalf of each such direct and indirect partner;   (C) any Foreign Lender shall, to the extent it is legally entitled to do   so, deliver to the Borrower and the Administrative Agent (in such number of   copies as shall be requested by the recipient) on or prior to the date on which such   Foreign Lender becomes a Lender under this Agreement (and from time to time   thereafter upon the reasonable request of the Borrower or the Administrative   Agent), executed copies of any other form prescribed by applicable Laws as a   basis for claiming exemption from or a reduction in U.S. federal withholding Tax,   duly completed, together with such supplementary documentation as may be   prescribed by applicable Laws to permit the Borrower or the Administrative   Agent to determine the withholding or deduction required to be made; and   (D) if a payment made to a Lender under any Loan Document would   be subject to U.S. federal withholding Tax imposed by FATCA if such Lender   were to fail to comply with the applicable reporting requirements of FATCA   (including those contained in Section 1471(b) or 1472(b) of the Code, as   applicable), such Lender shall deliver to the Borrower and the Administrative   Agent at the time or times prescribed by law and at such time or times reasonably   requested by the Borrower or the Administrative Agent such documentation   prescribed by applicable Laws (including as prescribed by   Section 1471(b)(3)(C)(i) of the Code) and such additional documentation   reasonably requested by the Borrower or the Administrative Agent as may be   necessary for the Borrower and the Administrative Agent to comply with their   obligations under FATCA and to determine that such Lender has complied with   such Lender’s obligations under FATCA or to determine the amount to deduct   and withhold from such payment.  Solely for purposes of this clause (D),     

 

39   110446369 v18      “FATCA” shall include any amendments made to FATCA after the date of this   Agreement.   (iii) Each Lender agrees that if any form or certification it previously delivered   expires or becomes obsolete or inaccurate in any respect, it shall update such form or   certification or promptly notify the Borrower and the Administrative Agent in writing of   its legal inability to do so.   (g) Status of Administrative Agent.  On or before the Closing Date, the   Administrative Agent shall provide to the Borrower, two duly-signed, properly completed   copies of the documentation prescribed in clause (i) or (ii) below, as applicable (together with   all required attachments thereto): (i) IRS Form W-9 or any successor thereto, or (ii) (A) IRS   Form W-8ECI or any successor thereto, and (B) with respect to payments received on account   of any Lender, a U.S. branch withholding certificate on IRS Form W-8IMY or any successor   thereto evidencing its agreement with the Borrower to be treated as a U.S. Person for U.S.   federal withholding purposes. At any time thereafter, the Administrative Agent shall provide   updated documentation previously provided (or a successor form thereto) when any   documentation previously delivered has expired or become obsolete or invalid or otherwise   upon the reasonable request of the Borrower.   (h) Treatment of Certain Refunds.  If any party determines, in its sole   discretion exercised in good faith, that it has received a refund of any Taxes as to which it has   been indemnified pursuant to this Section 3.01 (including by the payment of additional   amounts pursuant to this Section 3.01), it shall pay to the indemnifying party an amount equal   to such refund (but only to the extent of indemnity payments made under this Section with   respect to the Taxes giving rise to such refund), net of all out-of-pocket expenses (including   Taxes) of such indemnified party and without interest (other than any interest paid by the   relevant Governmental Authority with respect to such refund).  Such indemnifying party,   upon the request of such indemnified party, shall repay to such indemnified party the amount   paid over pursuant to this paragraph (h) (plus any penalties, interest or other charges imposed   by the relevant Governmental Authority) in the event that such indemnified party is required   to repay such refund to such Governmental Authority.  Notwithstanding anything to the   contrary in this paragraph (h), in no event will the indemnified party be required to pay any   amount to an indemnifying party pursuant to this paragraph (h) the payment of which would   place the indemnified party in a less favorable net after-Tax position than the indemnified   party would have been in if the Tax subject to indemnification and giving rise to such refund   had not been deducted, withheld or otherwise imposed and the indemnification payments or   additional amounts with respect to such Tax had never been paid.  This paragraph shall not be   construed to require any indemnified party to make available its Tax returns (or any other   information relating to its Taxes that it deems confidential) to the indemnifying party or any   other Person   (i) Survival.  Each party’s obligations under this Section 3.01 shall survive   the resignation or replacement of the Administrative Agent or any assignment of rights by, or   the replacement of, a Lender, the termination of the Commitments and the repayment,   satisfaction or discharge of the Obligations.      

 

40   110446369 v18      3.02 Increased Costs.  (a)  Increased Costs Generally.  If any Change in Law shall:   (i) impose, modify or deem applicable any reserve, special deposit,   compulsory loan, insurance charge or similar requirement against assets of, deposits with   or for the account of, or credit extended or participated in by, any Lender (except any   reserve requirement); or   (ii) subject any Recipient to any Taxes (other than (A) Indemnified Taxes,   (B) Taxes described in clauses (b) through (d) of the definition of Excluded Taxes and   (C) Connection Income Taxes) on its loans, loan principal, commitments, or other   obligations, or its deposits, reserves, other liabilities or capital attributable thereto;   and the result of any of the foregoing shall be to increase the cost to such Lender of making any   Loan, or to reduce the amount of any sum received or receivable by such Lender hereunder   (whether of principal, interest or any other amount) then, upon request of such Lender, the   Borrower (with respect to any such costs in respect of the Loans) will pay to such Lender, as the   case may be, such additional amount or amounts as will compensate such Lender for such   additional costs incurred or reduction suffered.   (b) Capital Requirements.  If any Lender determines that any Change in   Law affecting such Lender or any Lending Office of such Lender or such Lender’s holding   company, if any, regarding capital or liquidity has or would have the effect of reducing the   rate of return on such Lender’s capital or on the capital of such Lender’s holding company, if   any, as a consequence of this Agreement, the Commitments of such Lender or the Loans made   by such Lender to a level below that which such Lender or such Lender’s holding company   could have achieved but for such Change in Law (taking into consideration such Lender’s   policies and the policies of such Lender’s holding company with respect to capital adequacy),   then from time to time the Borrower (with respect to any such amounts in respect of the   Facility), such additional amount or amounts as will compensate such Lender or such   Lender’s holding company for any such reduction suffered.   (c) Certificates for Reimbursement.  A certificate of a Lender setting forth   the amount or amounts necessary to compensate such Lender or its holding company, as the   case may be, as specified in subsection (a) or (b) of this Section 3.02 and delivered to the   Borrower (with a copy to the Administrative Agent) shall be conclusive absent manifest error.    The Borrower (with respect to any such amounts in respect of the Facility) shall pay such   Lender, as the case may be, the amount shown as due on any such certificate within 10 days   after receipt thereof.   (d) Delay in Requests.  Failure or delay on the part of any Lender to   demand compensation pursuant to the foregoing provisions of this Section 3.02 shall not   constitute a waiver of such Lender’s right to demand such compensation, provided that no   Borrower shall be required to compensate a Lender pursuant to the foregoing provisions of   this Section 3.02 for any increased costs incurred or reductions suffered more than 180 days   prior to the date that such Lender, as the case may be, notifies the Borrower of the Change in   Law giving rise to such increased costs or reductions and of such Lender’s intention to claim   compensation therefor (except that, if the Change in Law giving rise to such increased costs or     

 

41   110446369 v18      reductions is retroactive, then the 180-day period referred to above shall be extended to   include the period of retroactive effect thereof).   3.03 Compensation for Losses.  Upon demand of any Lender (with a copy to the   Administrative Agent) from time to time, the Borrower (with respect to any such amounts in   respect of the Facility) shall promptly compensate such Lender for and hold such Lender   harmless from any loss, cost or expense incurred by it as a result of:   (a) any failure by the Borrower (for a reason other than the failure of such   Lender to make a Loan) to prepay or borrow the Loans on the date or in the amount notified   by the Borrower; or   (b) any assignment of a Loan on a day other than the last Business Day of   the calendar month therefor as a result of a request by the Borrower pursuant to Section 11.13;   including any loss or expense arising from the liquidation or reemployment of funds obtained by   it to maintain such Loan or from fees payable to terminate the deposits from which such funds   were obtained (excluding loss of anticipated profit).  The Borrower (with respect to any such   amounts) shall also pay any customary administrative fees charged by such Lender in connection   with the foregoing.   3.04 Mitigation Obligations; Replacement of Lenders.  (a)  Designation of a Different   Lending Office.  If any Lender or the Administrative Agent requests compensation under   Section 3.02, or requires the Borrower to pay any Indemnified Taxes or additional amounts to   any Lender, or the Administrative Agent, or any Governmental Authority for the account of any   Lender pursuant to Section 3.01, or if any Lender or the Administrative Agent gives a notice   pursuant to Section 3.02, then at the request of the Borrower such Lender shall, as applicable, use   reasonable efforts to designate a different Lending Office for funding or booking its Loans   hereunder or to assign its rights and obligations hereunder to another of its offices, branches or   affiliates, if, in the judgment of such Lender or the Administrative Agent, such designation or   assignment (i) would eliminate or reduce amounts payable pursuant to Section 3.01 or 3.02, as   the case may be, in the future, and (ii) in each case, would not subject such Lender or the   Administrative Agent, as the case may be, to any unreimbursed cost or expense and would not   otherwise be disadvantageous to such Lender, as the case may be.  The Borrower (with respect to   any such amounts in respect of the Facility) hereby agree to pay all reasonable costs and   expenses incurred by any Lender in connection with any such designation or assignment.   (b) Replacement of Lenders.  If any Lender requests compensation under   Section 3.02, or if the Borrower is required to pay any Indemnified Taxes or additional   amounts to any Lender or any Governmental Authority for the account of any Lender   pursuant to Section 3.01 and, in each case, such Lender has declined or is unable to designate   a different lending office in accordance with Section 3.04(a), the Borrower may replace such   Lender in accordance with Section 11.13.   3.05 Survival.  The Borrower’s obligations under this Article III shall survive   termination of the Aggregate Commitments, repayment of all other Obligations hereunder, and   resignation of the Administrative Agent.     

 

42   110446369 v18      ARTICLE IV   CONDITIONS PRECEDENT TO BORROWING   4.01 Conditions of Extension of Loans.  The obligation of each Lender to make its   Loan hereunder is subject to Majority Commitment Parties’ satisfaction (or waiver by the   Majority Commitment Parties) of the following conditions precedent:   (a) The Administrative Agent’s receipt of the following, each of which   shall be originals or telecopies or other electronic copies (followed promptly by originals)   unless otherwise specified, each properly executed by a Responsible Officer of the signing   Loan Party, if applicable, each dated as of the Closing Date (or, in the case of certificates of   governmental officials, a recent date before the Closing Date) and each in form and substance   reasonably satisfactory to the Majority Commitment Parties:   (i) executed counterparts of this Agreement and the Intercompany   Subordination Agreement;   (ii) a Note executed by the Borrower in favor of each Lender requesting a   Note;   (iii) a U.S. security agreement (together with each other security agreement   and security agreement supplement delivered in respect of the Collateral pursuant to   Section 6.14, in each case as amended, the “Security Agreement”), duly executed by each   Loan Party, together with:   (A) certificates representing the Pledged Equity referred to therein   accompanied by undated stock powers executed in blank and instruments   evidencing the Pledged Debt referred to therein indorsed in blank (including, for   the avoidance of doubt, any intercompany notes owed from the Hong Kong   Debtor to GTAT Corporation pursuant to the Intercompany Agreement),   (B) proper financing statements, in appropriate form for filing under   the UCC of all jurisdictions that are necessary or advisable (as reasonably   determined by the Majority Commitment Parties) or that the Administrative   Agent may reasonably request in order to perfect the Liens created under the   Security Agreement, covering the Collateral described in the Security Agreement,   (C) completed lien searches, dated on or before the Closing Date,   listing all effective financing statements filed in the jurisdictions referred to in   clause (B) above that name any Loan Party as debtor, together with copies of such   other financing statements,    (D) all other recordings and filings (including all UCC financing   statements) that are necessary or advisable (as reasonably determined by the   Majority Commitment Parties) to be filed, recorded or registered, or that the   Administrative Agent may reasonably request in order to perfect the Liens created   thereby,     

 

43   110446369 v18      (E) the Deposit Account Control Agreements and the Securities   Account Control Agreement, in each case as referred to and required under the   Security Agreement and duly executed by the appropriate parties, and   (F) evidence that all other action that is necessary or advisable (as   reasonably determined by the Majority Commitment Parties) or that the   Administrative Agent may reasonably request in order to perfect the Liens created   under the Security Agreement has been taken (including receipt of duly executed   payoff letters and UCC-3 termination statements);   (iv) a deed of share charge (the “Hong Kong Share Pledge Agreement”) duly   executed by GTAT Corporation, together with other Hong Kong Share Pledge   Documents;    (v) the Luxembourg Receivables Pledge Agreement;    (vi) the Agent Fee Letter, executed and delivered by the Administrative Agent   and the Borrower in form and substance satisfactory to the Administrative Agent and the   Borrower;   (vii) an intellectual property security agreement (together with each other   intellectual property security agreement and intellectual property security agreement   supplement delivered pursuant to Section 6.14, in each case as amended, the “Intellectual   Property Security Agreement”), duly executed by each Loan Party that owns intellectual   property registered in the United States, together with evidence that all action that the   Majority Commitment Parties may reasonably deem necessary or desirable in order to   perfect the Liens created under the Intellectual Property Security Agreement has been   taken;   (viii) a certificate of the secretary or assistant secretary (or other equivalent   officer, partner or manager) of each Loan Party dated as of the Closing Date which shall   certify (i) copies of resolutions of the board of directors (or other equivalent governing   body, member or partner) of such Loan Party authorizing (1) the execution, delivery and   performance of this Agreement and each other Loan Document to which such Loan Party   is a party (including, in the case of the Borrower, authorization of the borrowing of the   Loans), and (2) the granting by such Loan Party of the security interests in and liens upon   the Collateral to secure all of the Obligations (and such certificate shall state that such   resolutions have not been amended, modified, revoked or rescinded as of the date of such   certificate), (ii) the incumbency and signature of the officers of such Loan Party   authorized to execute this Agreement and the other Loan Documents to which such Loan   Party is a party, (iii) copies of the Organization Documents of such Loan Party as in   effect on such date, complete with all amendments thereto, (iv) the good standing (or   equivalent status to the extent applicable) of such Loan Party in its jurisdiction of   organization and each applicable jurisdiction where the conduct of such Loan Party’s   business activities or the ownership of its properties necessitates qualification, as   evidenced by good standing certificate(s) (or the equivalent thereof issued by any   applicable jurisdiction) dated not more than 30 days prior to the Closing Date, issued by     

 

44   110446369 v18      the Secretary of State or other appropriate official of each such jurisdiction as attached to   such certificate, and (v) in case of the Luxembourg Guarantor (a) an electronic true and   complete certified excerpt of the Luxembourg Companies Register pertaining to it dated   as of the Closing Date, (b) an electronic certified true and complete certificate of non-   registration of judgment (certificat de non-inscription d’une décision judiciaire) dated as   of the Closing Date issued by the Luxembourg Companies Register and reflecting the   situation no more than one Business Day prior to the Closing Date certifying that, as of   the date of the day immediately preceding such certificate, the Luxembourg Guarantor   has not been declared bankrupt (en faillite), and that it has not applied for general   settlement or composition with creditors (concordat préventif de faillite), controlled   management (gestion contrôlée), or reprieve from payment (sursis de paiement), judicial   or voluntary liquidation (liquidation judiciaire ou volontaire), such other proceedings   listed at Article 13, items 2 to 11, 13 and Article 14 of the Luxembourg Act dated   December 19, 2002 on the Register of Commerce and Companies, on Accounting and on   Annual Accounts of the Companies (as amended from time to time), (and which include   foreign court decisions as to faillite, concordat or analogous procedures according to   Council Regulation (EC) n°1346/2000 of May 29, 2000 on insolvency proceedings), (c) a   certification that as of the Closing Date the Luxembourg Guarantor is not subject to nor,   as applicable, does it meet or threaten to meet the criteria of bankruptcy (faillite),   insolvency, voluntary or judicial liquidation (liquidation volontaire ou judiciaire),   composition with creditors (concordat préventif de faillite), controlled management   (gestion contrôlée), reprieve from payment (sursis de paiement), general settlement with   creditors, reorganization or similar laws affecting the rights of creditors generally and no   application has been made or is to be made by its managers or, as far as they are aware,   by any other person for the appointment of a commissaire, juge-commissaire, liquidateur,   curateur or similar officer pursuant to any voluntary or judicial insolvency, winding-up,   liquidation or similar proceedings, and (d) a certificate of the domiciliation agent   certifying due compliance by the Luxembourg Guarantor with, and adherence to, the   provisions of the Luxembourg Law dated 31 May 1999 concerning the domiciliation of   companies, as amended, and the related regulations;   (ix) a favorable opinion of Ropes & Gray LLP, counsel to the Loan Parties,   addressed to the Administrative Agent and each Lender;   (x) a favorable opinion of Paul Hastings LLP, counsel to the Loan Parties,   addressed to the Lenders and the Administrative Agent, relating to the entry of the Final   DIP;   (xi) a favorable opinion of Deacons, counsel to the Loan Parties addressed to   the Administrative Agent and each Lender, with respect to the Hong Kong Share Pledge   Documents (other than with respect to clause (ii) of such definition);    (xii) a favorable opinion of Loyens & Loeff Luxembourg S.à r.l., counsel to the   Loan Parties addressed to the Administrative Agent and each Lender, with respect to the   capacity of the Luxembourg Guarantor to enter into the Loan Documents and the absence   of stamp duty or filing requirements in form and substance reasonably satisfactory to the   Majority Commitment Parties;     

 

45   110446369 v18      (xiii) a favorable opinion of NautaDutilh Avocats Luxembourg S.à r.l., counsel   to the Administrative Agent addressed to the Administrative Agent and each Lender, with   respect to the enforceability of the Luxembourg Receivables Pledge Agreement, the   validity and enforceability of the choice of law and choice of jurisdiction clauses, the   recognition of foreign judgments relating to such Loan Documents and other related   matters in form and substance reasonably satisfactory to the Majority Commitment   Parties;   (xiv) a closing certificate signed by a Responsible Officer of the Borrower dated   as of the Closing Date, stating that (i) all representations and warranties set forth in this   Agreement and the other Loan Documents are true and correct in all material respects (or   in all respects with regards to representations and warranties already qualified by   materiality) on and as of such date (except to the extent that any such representation or   warranty speaks or is referenced to a particular date, in which case stating that such   representation or warranty is true and correct in all material respects (or in all respects   with regards to representations and warranties already qualified by materiality) as of such   date) and (ii) on such date no Default or Event of Default has occurred and is continuing   at the time of, or immediately after giving effect to, the making of the Loans on the   Closing Date; and   (xv) a Borrowing Notice relating to the Loans to be made on the Closing Date.    (b) The Put Option Premium and the Extension Put Option Premium shall   have been paid in accordance with Section 2.03.   (c) All fees and expenses required to be paid on or before the Closing Date   shall have been paid pursuant to the Agent Fee Letter and the Commitment Letter.   (d) The Administrative Agent, the Advisor to Lenders and those Lenders   willing to receive such information on a confidential basis without any cleansing requirement   shall have received a budget (the “Approved Budget”), projecting cash flows through the   maturity of the Facility in form consistent with the budget previously delivered to the Advisor   to Lenders, which budget shall be approved by the Majority Commitment Parties in their   reasonable discretion, provided that any material modification prior to the Closing Date to the   budget previously delivered to the Lenders shall be subject to the consent of the Majority   Commitment Parties in their sole good faith discretion; provided further, that all Lenders shall   receive on a public basis a budget that is consistent with the Approved Budget and in form   consistent with the Approved Budget previously provided to the Lenders and made public in   the Borrower’s Form 8-K dated as of July 7, 2015.   (e) The Administrative Agent, the Advisor to Lenders and those Lenders   willing to receive such information on a confidential basis without any cleansing requirement   shall have received a thirteen (13) week cash flow forecast for the 13-week period from the   Closing Date, which shall be in form consistent with the thirteen (13) week cash flow forecast   previously provided to the Advisor to Lenders.      

 

46   110446369 v18      (f) The Final DIP Order shall have been entered by the Bankruptcy Court,   shall be in full force and effect and shall not have been reversed on appeal, or vacated or   modified by any order of the Bankruptcy Court and shall not be subject to any pending stay   (other than as consented to by the Lenders).  The Final DIP Order shall (x) grant to the Agent   and the Lenders (i) Superpriority Claims and (ii) security interests in, and liens on, the   Collateral securing the Obligations pursuant to Section 364(c)(2) and (3) and Section 364(d)   of the Bankruptcy Code (in each case consistent with the Apple Settlement Agreement) and (y)   provide (i) authorization to pay the Put Option Premium, the Extension Put Option Premium   and all expenses in accordance with the terms of the Commitment Letter and (ii) approval of   the information sharing obligations and the indemnity obligations under the Commitment   Letter.  The Debtors shall be in compliance in all material respects with the Final DIP Order.   (g) [Reserved]   (h) Since July 2, 2015, there has not been any occurrence or event which   could reasonably be expected to have a Material Adverse Effect.    (i) To the extent that the Borrower or its Affiliates have provided any   Lender with any additional material non-public information, the Borrower shall have publicly   disclosed all material non-public information provided to such Lender pursuant to the terms of   the confidentiality agreements entered into between the Borrower and the applicable Lender.   (j) The Administrative Agent shall have received all documentation and   other information required by regulatory authorities under applicable “know your customer”   and anti-money laundering rules and regulations, including the Patriot Act.   (k) The representations and warranties of the Borrower and each other   Loan Party contained in Article V or any other Loan Document shall be true and correct in all   material respects (except that such representations and warranties that are qualified by   materiality or Material Adverse Effect shall be true and correct in all respects) on and as of the   Closing Date (except to the extent that any such representation or warranty speaks or is   referenced to a particular date, in which case stating that such representation or warranty is   true and correct in all material respects (except that such representations and warranties that   are qualified by materiality or Material Adverse Effect shall be true and correct in all respects)   as of such date).   (l) No Default shall exist, or would result from such proposed Loans or   from the application of the proceeds thereof.   (m) The Loans shall not cause the aggregate amount of the Loans to exceed   the amount then authorized by the Final DIP Order, or any order modifying, reversing, staying   or vacating such order shall have been entered.     (n) The Apple Settlement Agreement shall be in full force and effect, and   shall not be amended in any manner adverse to the interests of the Lenders (as determined by   the Majority Commitment Parties in their reasonable discretion).     

 

47   110446369 v18      (o) The Advisor to Lenders shall have received the results from any testing   regarding the chemical composition of particulates in connection with the May 26, 2015 fire   at the Debtor’s Mesa Facility.   ARTICLE V      REPRESENTATIONS AND WARRANTIES   The Borrower represents and warrants to the Administrative Agent and the Lenders that:   5.01 Existence, Qualification and Power.  Each Loan Party and each of its Subsidiaries   (a) is duly organized or formed, validly existing and in good standing (or the applicable foreign   equivalent, if applicable) under the Laws of the jurisdiction of its incorporation or organization,   (b) subject to any restriction or requirement arising on account of Borrower’s or each of its   Subsidiaries’ status as a “debtor” under the Bankruptcy Code, has all requisite power and   authority and all requisite governmental licenses, authorizations, consents and approvals to   (i) subject to Reclamation Dispositions, own or lease its assets and carry on its business and (ii)   execute, deliver and perform its obligations under the Loan Documents to which it is a party,   subject to entry of the Final DIP Order, and (c) is duly qualified and is licensed and in good   standing (or the applicable foreign equivalent, if applicable) under the Laws of each jurisdiction   where its ownership, lease or operation of properties or the conduct of its business requires such   qualification or license, except, in each case, referred to in clause (a) (other than with respect to   the Borrower), (b)(i) or (c), to the extent, in each case, that failure to do so qualify could not   reasonably be expected to have a Material Adverse Effect.   5.02 Authorization; No Contravention.  Subject to entry of the Final DIP Order, the   execution, delivery and performance by each Loan Party of each Loan Document to which such   Person is party, have been duly authorized by all necessary corporate or other organizational   action, and do not and will not (a) contravene the terms of any of such Person’s Organization   Documents; (b) conflict with or result in any breach or contravention of, or the creation of any   Lien (other than Permitted Liens) under, or require any payment to be made under (i) any   Contractual Obligation to which such Person is a party or affecting such Person or the properties   of such Person or any of its Subsidiaries or (ii) any order, injunction, writ or decree of any   Governmental Authority or any arbitral award to which such Person or its property is subject; or   (c) violate any applicable Law, except with respect to any breach or contravention or payment or   creation of Liens referred to in clause (b) or any violation of applicable Law referred to in   clause (c), to the extent that such conflict, breach, contravention, payment, creation of Lien or   violation could not reasonably be expected to have a Material Adverse Effect.   5.03 Governmental Authorization; Other Consents.  Except for the entry of the Final   DIP Order, no approval, consent, exemption, authorization, or other action by, or notice to, or   filing with, any Governmental Authority or any other Person is necessary or required in   connection with (a) the execution, delivery or performance by, or enforcement against, any Loan   Party of this Agreement or any other Loan Document, or for the consummation of the   Transaction, (b) the grant by any Loan Party of the Liens granted by it pursuant to the Collateral   Documents, (c) the perfection or maintenance of the Liens created under the Collateral   Documents (including the first priority nature thereof) or (d) the exercise by the Agent or any     

 

48   110446369 v18      Lender of its rights under the Loan Documents or the remedies in respect of the Collateral   pursuant to the Collateral Documents, except for (i) filings and other actions necessary to perfect   the Liens on the Collateral granted by the Loan Parties in favor of the Secured Parties, (ii) the   approvals, consents, exemptions, authorizations, actions, notices and filings which have been   duly obtained, taken, given or made and are in full force and effect, (iii) filings with the SEC,   including a Current Report on Form 8-K, (iv) to the extent such approval, consent, exemption,   authorization arise from contracts entered into prior to the Petition Date and (v) those other   approvals, consents, exemptions, authorizations or other actions, notices or filings, the failure of   which to obtain or make could not reasonably be expected to have a Material Adverse Effect.   5.04 Binding Effect.  This Agreement has been, and each other Loan Document, when   delivered hereunder, will have been, duly executed and delivered by each Loan Party that is party   thereto.  Upon entry of the Final DIP Order by the Bankruptcy Court and subject thereto, this   Agreement constitutes, and each other Loan Document when so delivered will constitute, a legal,   valid and binding obligation of such Loan Party, enforceable against each Loan Party that is   party thereto in accordance with its terms.   5.05 Financial Conditions; No Material Adverse Effect.     (a) The unaudited consolidated balance sheet of Borrower and its   Subsidiaries dated June 28, 2014 and the related consolidated statements of operations and   cash flows for the Fiscal Quarter then ended on that date (i) were prepared in accordance with   GAAP consistently applied throughout the period covered thereby, except as otherwise   expressly noted therein and (ii) fairly present in all material respects the financial condition of   Borrower and its Subsidiaries as of the date thereof and their results of operations for the   period covered thereby, subject, in each case of clauses (i) and (ii), to the absence of footnotes   and to normal year end audit adjustments.   (b) Since July 2, 2015, there has been no event or circumstance, either   individually or in the aggregate, that could reasonably be expected to have a Material Adverse   Effect.   (c) The Projections and estimates and information of a general economic   nature prepared, or as prepared by, the Debtors or any of their representatives and that have   been made available to any Lender or its Related Parties in connection with the Transactions   have been prepared in good faith on the basis of the assumptions stated therein, which   assumptions were reasonable in light of the conditions existing at the time of delivery of such   Projections, it being understood that any such financial projections are subject to significant   uncertainties and contingencies, many of which are beyond the control of Borrower and its   Subsidiaries, that no assurance can be given that any particular financial projections will be   realized, that actual results may differ and that such differences may be material.   5.06 Litigation.  Other than the Chapter 11 Cases and as set forth on Schedule 5.06,   there are no actions, suits, proceedings, claims or disputes pending or, to the knowledge of any   Responsible Officer of Borrower, threatened in writing at law, in equity, in arbitration or before   any Governmental Authority, by or against Borrower or any of its Subsidiaries or against any of   their properties or revenues that (a) purport to affect or pertain to this Agreement or any other     

 

49   110446369 v18      Loan Document or (b) which could reasonably be expected to have, individually or in the   aggregate, a Material Adverse Effect.    5.07 No Default.  None of the Loan Parties nor any of their Subsidiaries is in default   under or with respect to any Contractual Obligation that could, either individually or in the   aggregate, reasonably be expected to have a Material Adverse Effect.  No Default has occurred   and is continuing or would result from the consummation of the Transactions or any other   transactions contemplated by this Agreement or any other Loan Document.   5.08 Ownership of Property; Liens; Investments.    (a) Each Loan Party and each of its Subsidiaries has good and insurable   title in fee simple to, or valid leasehold interests in, all real property necessary or used in the   ordinary conduct of its business subject to Permitted Encumbrances, except for such defects in   title that, in the aggregate, are not substantial in amount and do not materially detract from the   value of the property subject thereto or interfere in any material respect with the Borrower’s   ability to conduct its business as currently conducted or to utilize such properties and assets   for their intended purposes.  No portion of the Real Property of any Loan Party has suffered   any material damage by fire or other casualty loss that has not heretofore been completely   repaired and restored to its original condition to the extent required by this Agreement.    (b) The property of each Loan Party and each of its Subsidiaries is subject   to no Liens, other than Permitted Liens.   (c) Schedule 5.08(c) sets forth a complete and accurate list of all real   property owned by each Loan Party on the Closing Date, showing as of the date hereof the   street address, county or other relevant jurisdiction, state, record owner and book and   estimated fair value thereof.  Each Loan Party and each of its Subsidiaries has good and   insurable fee simple title to the Material Real Property owned by such Loan Party or such   Subsidiary, free and clear of all Liens, other than Permitted Liens.   (d) Schedule 5.08(d) sets forth a complete and accurate list of all material   leases of real property under which any Loan Party is the lessee on the Closing Date, showing   as of the Closing Date the street address, county or other relevant jurisdiction, state, lessor,   lessee, expiration date and annual rental cost thereof.  Each such lease is the legal, valid and   binding obligation of the lessor thereof, enforceable in accordance with its terms.   (e) No Loan Party is obligated under any right of refusal, option or other   contractual right to sell, assign or otherwise dispose of any Real Property of any Loan Party or   any interest therein.   (f) There are no pending or, to the actual knowledge of any Loan Party,   proposed special or other assessments for public improvements or otherwise affecting any   material portion of any owned Real Property of the Loan Parties, nor are there any   contemplated improvements to such owned Real Property of the Loan Parties that may result   in such special or other assessments.       

 

50   110446369 v18      (g) Schedule 5.08(g) sets forth a complete and accurate list of all   Investments consisting of Equity Interests held by Borrower or any of its Subsidiaries on the   date hereof and any Investments consisting of promissory notes and other evidence of   Indebtedness with an individual principal amount of more than $500,000 held by Borrower or   any of its Subsidiaries on the date hereof, showing as of the date hereof the amount, obligor or   issuer and maturity, if any, thereof.   5.09 Environmental Compliance.  The Loan Parties and their respective Subsidiaries   conduct in the ordinary course of business a review of the effect of existing Environmental Laws   and claims alleging potential liability or responsibility for violation of any Environmental Law   on their respective businesses, operations and properties, and as a result thereof the Borrowers   have reasonably concluded as of the Closing Date that such Environmental Laws and claims   could not have a Material Adverse Effect.   5.10 Insurance.  The properties of Borrower and its Subsidiaries are insured with   financially sound and reputable insurance companies not Affiliates of Borrower, in such   amounts, with such deductibles and covering such risks as are customarily (as determined in   good faith by a Responsible Officer of Borrower) carried by companies engaged in similar   businesses and owning similar properties in localities where Borrower or the applicable   Subsidiary operates.   5.11 Taxes.  Except as set forth on Schedule 5.11, each Loan Party and any Subsidiary   thereof has filed all material U.S. federal, state, non-U.S. and other Tax returns and reports   required to be filed, and has paid all material U.S. federal, state and non-U.S. and other Taxes   levied or imposed upon them or their properties, income or assets otherwise due and payable,   except those which are being contested in good faith by appropriate proceedings diligently   conducted and for which adequate reserves have been provided. Except as set forth on Schedule   5.11, each Loan Party and each of its Subsidiaries have made adequate provision in accordance   with GAAP. Except as set forth on Schedule 5.11, as of the Closing Date, there is no proposed   tax assessment against Borrower or any Subsidiary. As of the Closing Date, neither Loan Party   nor any Subsidiary thereof is party to any tax sharing agreement.   5.12 ERISA Compliance.     (a) Except as could not, either individually or in the aggregate, be   reasonably be expected to result in a Material Adverse Effect, each Plan (other than a   Multiemployer Plan) is in compliance with the applicable provisions of ERISA, the Code and   other Federal or state laws.  Each Pension Plan that is intended to be a qualified plan under   Section 401(a) of the Code has received a favorable determination letter from the IRS to the   effect that the form of such Plan is qualified under Section 401(a) of the Code and the trust   related thereto has been determined by the IRS to be exempt from federal income tax under   Section 501(a) of the Code, or an application for such a letter is currently being processed by   the IRS.  To the best knowledge of each Loan Party, nothing has occurred that would prevent,   or could reasonably be expected to cause the loss of, such tax-qualified status.   (b) There are no pending or, to the best knowledge of any Loan Party,   threatened claims, actions or lawsuits, or action by any Governmental Authority, with respect     

 

51   110446369 v18      to any Plan that could reasonably be expected to have a Material Adverse Effect.  There has   been no prohibited transaction or violation of the fiduciary responsibility rules with respect to   any Plan that has resulted or could reasonably be expected to result in a Material Adverse   Effect.   (c) Except as could not, either individually or in the aggregate, reasonably   be expected result in a Material Adverse Effect (i) no ERISA Event has occurred, and neither   Borrower nor any ERISA Affiliate is aware of any fact, event or circumstance that could   reasonably be expected to constitute or result in an ERISA Event with respect to any Pension   Plan; (ii) Borrower and each ERISA Affiliate has met all applicable requirements under the   Pension Funding Rules in respect of each Pension Plan (except for noncompliance that was   corrected by the final due dates for the plan year for which such noncompliance occurred),   and no waiver of the minimum funding standards under the Pension Funding Rules has been   applied for or obtained; (iii) as of the most recent valuation date for any Pension Plan, the   funding target attainment percentage (as defined in Section 430(d)(2) of the Code) is 60% or   higher and neither Borrower nor any ERISA Affiliate knows of any facts or circumstances   that could reasonably be expected to cause the funding target attainment percentage for any   such plan to drop below 60% as of the most recent valuation date; (iv) neither Borrower nor   any ERISA Affiliate has incurred any liability to the PBGC other than for the payment of   premiums, and there are no premium payments which have become due that are unpaid;   (v) neither Borrower nor any ERISA Affiliate has engaged in a transaction that could   reasonably be expected to be subject to Section 4069 or Section 4212(c) of ERISA; and   (vi) no Pension Plan has been terminated by the plan administrator thereof nor by the PBGC   with respect to which there is an unsatisfied liability, and no event or circumstance has   occurred or exists that could reasonably be expected to cause the PBGC to institute   proceedings under Title IV of ERISA to terminate any Pension Plan.   (d) Neither Borrower or any ERISA Affiliate maintains or contributes to,   or has any unsatisfied obligation to contribute to, or liability under, any active or terminated   Pension Plan other than (A) on the Closing Date, those listed on Schedule 5.12(d) hereto and   (B) thereafter, Pension Plans not otherwise prohibited by this Agreement.   (e) With respect to each scheme or arrangement mandated by a   government other than the United States (a “Foreign Government Scheme or Arrangement”)   and with respect to each Plan that is a defined benefit plan and is described in Section 4(b)(4)   of ERISA (a “Foreign Plan”):   (i) any employer and employee contributions required by law or by the terms   of any Foreign Government Scheme or Arrangement or any Foreign Plan have been   made, or, if applicable, accrued, in accordance with normal accounting practices;   (ii) the fair market value of the assets of each funded Foreign Plan, the   liability of each insurer for any Foreign Plan funded through insurance or the book   reserve established for any Foreign Plan, together with any accrued contributions, is   sufficient to procure or provide for the accrued benefit obligations, as of the date hereof,   with respect to all current and former participants in such Foreign Plan according to the     

 

52   110446369 v18      actuarial assumptions and valuations most recently used to account for such obligations   in accordance with applicable generally accepted accounting principles; and   (iii) each Foreign Plan required to be registered has been registered and has   been maintained in good standing with applicable regulatory authorities.   5.13 Subsidiaries; Loan Parties.  As of the Closing Date, Borrower has no Subsidiaries   other than those specifically disclosed in Part (a) of Schedule 5.13, and all of the outstanding   Equity Interests in such Subsidiaries have been validly issued, are fully paid and non-assessable   and are owned by a Loan Party as set forth on Part (a) of Schedule 5.13, free and clear of all   Liens except for Permitted Liens.  Set forth on Part (b) of Schedule 5.13 is a complete and   accurate list of all Loan Parties as of the Closing Date, showing as of the Closing Date (as to   each Loan Party) the jurisdiction of its incorporation, the address of its principal place of   business and its taxpayer identification number or, in the case of any non-Loan Party that does   not have a taxpayer identification number, its unique identification number issued to it by the   jurisdiction of its incorporation, if applicable.  The copy of the charter or articles or certificate of   incorporation or organization, as applicable, of each Loan Party and each amendment thereto   provided pursuant to Section 4.01(a) is a true and correct copy of each such document, each of   which is valid and in full force and effect.    5.14 Margin Regulations; Investment Company Act.    (a) None of the Loan Parties is engaged in and will not engage in,   principally or as one of its important activities, in the business of purchasing or carrying   margin stock (within the meaning of Regulation U issued by the FRB), or extending credit for   the purpose of purchasing or carrying margin stock.  No part of the proceeds of the Loans will   be used to purchase or carry any such margin stock or to extend credit to others for the   purpose of purchasing or carrying any such margin stock or for any purpose that violates the   provisions of Regulation T, U or X of the FRB.   (b) None of Borrower, any Person Controlling Borrower, or any Subsidiary   is or is required to be registered as an “investment company” under the Investment Company   Act of 1940.   5.15 Disclosure.  All written information, other than Projections (defined below) and   information of a general economic or general industry nature, furnished by or on behalf of any   Loan Party to the Administrative Agent or any Lender in connection with the transactions   contemplated hereby and the negotiation of this Agreement or delivered hereunder or under any   other Loan Document (in each case as modified or supplemented by other information so   furnished), taken as a whole, is and will be, when furnished, correct in all material respects and   does not and will not, when furnished, contain any untrue statement of a material fact or omit to   state a material fact necessary to make the statements contained therein not materially misleading   in light of the circumstances in which such statements are made (after giving effect to all   supplements and updates thereto) and (b) all financial projections (the “Projections”) concerning   Borrower and its Subsidiaries furnished by or on behalf of any Loan Party to the Administrative   Agent or any Lender in connection with the Transactions contemplated hereby and the   negotiation of this Agreement or delivered hereunder or under any other Loan Document (in each     

 

53   110446369 v18      case as modified or supplemented by other information so furnished), have been or will be   prepared in good faith based upon assumptions believed by Borrower and its Subsidiaries to be   reasonable at the time made and at the time delivered to the Lenders, it being understood that any   such financial projections are subject to significant uncertainties and contingencies, many of   which are beyond the control of Borrower and its Subsidiaries, that no assurance can be given   that any particular financial projections will be realized, that actual results may differ and that   such differences may be material.    5.16 Compliance with Laws. Except as set forth on Schedule 5.16, each Loan Party   and each Subsidiary thereof is in compliance in all material respects with the requirements of all   Laws and all orders, writs, injunctions and decrees applicable to it or to its properties, except in   such instances in which (a) such requirement of Law or order, writ, injunction or decree is being   contested in good faith by appropriate proceedings diligently conducted or (b) the failure to   comply therewith, either individually or in the aggregate, could not reasonably be expected to   have a Material Adverse Effect.   5.17 Intellectual Property.  Borrower and each of its Subsidiaries own, or possess the   right to use, all of the trademarks, service marks, trade names, copyrights, patents, patent rights,   franchises, licenses and other intellectual property rights (collectively, “IP Rights”) that are   reasonably necessary for the operation of their respective businesses, without conflict with the   valid rights of any other Person, except to the extent such conflicts, individually or in the   aggregate, could not reasonably be expected to be material to the business of Borrower and its   subsidiaries taken as a whole, and the Security Agreement (as supplemented from time to time in   accordance with Section 6.02(f)) sets forth a complete and accurate list of all such IP Rights that   are filed or registered in the United States and owned by any Loan Party.  To the best knowledge   of the Borrower, no slogan or other advertising device, product, process, method, substance, part   or other material now employed, or now contemplated to be employed, by Borrower or any of its   Subsidiaries infringes upon any valid rights held by any other Person, except to the extent such   infringement, individually or in the aggregate, could not reasonably be expected to be material to   the business of Borrower and its subsidiaries taken as a whole.  No claim or litigation regarding   any of the foregoing is pending or, to the best knowledge of the Borrower, threatened, which,   either individually or in the aggregate, could reasonably be expected to have a Material Adverse   Effect.   5.18 Material Contracts.  Schedule 5.18, together with any updates provided pursuant   to Section 6.03(c), contains a true, correct and complete list of all the Material Contracts; except   to the extent resulting from the Chapter 11 Cases or related to the entry and terms of the Final   DIP Order, such Material Contracts are in full force and effect, except to the extent resulting   from, or relating to, the Chapter 11 Cases or the entry and the terms of the Final DIP Order, and,   except as set forth on Schedule 5.18, (a) the Borrower or its Subsidiaries are not in default   hereunder and (b) to the knowledge of the Borrower, no other party is in default thereunder.    5.19 Permits; Licenses.  Each Loan Party has, and is in compliance with, all permits,   licenses, authorizations, approvals, entitlements and accreditations required for such Person   lawfully to own, lease, manage or operate, or to acquire, each business currently owned, leased,   managed or operated, or to be acquired, by such Person, which, if not obtained, would   reasonably be expected have a Material Adverse Effect or any violation or breach of which     

 

54   110446369 v18      would not reasonably be expected to have a Material Adverse Effect.  Other than the pendency of   the Chapter 11 Cases, or the entry of any order of the Bankruptcy Court, no condition exists or   event has occurred which, in itself or with the giving of notice or lapse of time or both, would   result in the suspension, revocation, impairment, forfeiture or non-renewal of any such permit,   license, authorization, approval, entitlement or accreditation, and there is no claim that any   thereof is not in full force and effect, except, to the extent any such condition, event or claim   would not reasonably be expected to have a Material Adverse Effect.    5.20 Bank Accounts and Securities Accounts.  Schedule 5.20 sets forth a complete and   accurate list as of the Closing Date of all deposit, checking and other bank accounts, all securities   and other accounts maintained with any broker dealer and all other similar accounts maintained   by the Borrower and each of its Subsidiaries, together with a description thereof including,   without limitation, the bank or broker dealer at which such account is maintained, the account   number and the purpose thereof.   5.21 Labor Matters.  Except as would not reasonably be expected to have a Material   Adverse Effect, as of the Closing Date (i) there are no strikes, lockouts or slowdowns against   Borrower or any Subsidiary pending or, to the knowledge of Borrower, threatened and (ii) the   consummation of the Transaction will not give rise to any right of termination or right of   renegotiation on the part of any union under any collective bargaining agreement to which   Borrower or any Subsidiary is bound.   5.22 Collateral Documents.  All filings and other actions necessary or desirable (in   each case, as reasonably determined by the Required Lenders) or reasonably requested by the   Administrative Agent to perfect and protect the Lien in the Collateral created under the Collateral   Documents have been duly made or taken or will be duly taken in accordance with the terms of   the Collateral Documents or otherwise provided for and are in full force and effect, and the   Collateral Documents create in favor of the Collateral Agent (as collateral agent) for the benefit   of the applicable Secured Parties a valid and, together with such filings and other actions,   perfected first priority Lien in the Collateral, securing the payment of the applicable Obligations,   subject to Permitted Liens.  Except for filings as contemplated hereby and by the Collateral   Documents, no filing or other action will be necessary to perfect or protect such Liens.     5.23 Patriot Act.  To the extent applicable, Borrower and each of its Subsidiaries is in   compliance, in all material respects, with the (a) Trading with the Enemy Act, as amended, and   each of the foreign assets control regulations of the United States Treasury Department (31 CFR,   Subtitle B, Chapter V, as amended) and any other enabling legislation or executive order relating   thereto, and (b) the Patriot Act.  No part of the proceeds of the Loans made hereunder will be   used, directly or indirectly, for any payments to any governmental official or employee, political   party, official of a political party, candidate for political office, or anyone else acting in an   official capacity, in order to obtain, retain or direct business or obtain any improper advantage, in   violation of the United States Foreign Corrupt Practices Act of 1977, as amended.   5.24 OFAC.  No Loan Party, nor, to the knowledge of any Loan Party, any Related   Party, (i) is currently the subject of any Sanctions, (ii) is located, organized or residing in any   Designated Jurisdiction, or (iii) is or has been (within the previous five (5) years) engaged in any   transaction with any Person who is now or was then the subject of Sanctions or who is located,     

 

55   110446369 v18      organized or residing in any Designated Jurisdiction.  No Loan Party, nor, to the knowledge of   any Loan Party, any Related Party, has used any Loan, or the proceeds from any Loan, directly or   indirectly, to lend, contribute, provide or has otherwise made available to fund any activity or   business in any Designated Jurisdiction or to fund any activity or business of any Person located,   organized or residing in any Designated Jurisdiction or who is the subject of any Sanctions, or in   any other manner that will result in any violation by any Person as a result of any such action   (including any Lender, or the Agent) of Sanctions.   5.25 Reorganization Matters; Administrative Priority; Lien Priority.     (a) The Chapter 11 Cases were commenced on the Petition Date in   accordance with applicable law and proper notice thereof and proper notice of (x) the motion   seeking approval of the Loan Documents and the Final DIP Order and (y) the hearing for the   approval of the Final DIP Order has been held.   (b) After the entry of the Final DIP Order and pursuant to and to the extent   permitted in the Final DIP Order, the Obligations will constitute allowed Superpriority Claims.   (c) After the entry of the Final DIP Order and pursuant to and to the extent   provided in the Final DIP Order, the Obligations will be secured by a valid and perfected first   priority Lien on all of the Collateral, subject in all respects, to the Carve-Out.    (d) The Final DIP Order (with respect to the period on and after the entry   of the Final DIP Order) is in full force and effect and has not been reversed, stayed, modified   or amended without the Lender’s consent.   (e) The Approved Budget and all projected consolidated balance sheets,   income statements and cash flow statements of Borrower and its Subsidiaries delivered to the   Administrative Agent were prepared in good faith on the basis of the assumptions stated   therein, which assumptions were believed in good faith by the Borrower to be fair in light of   the conditions existing at the time of delivery of such report or projections (it being   understood that any projections or estimates made in the items described in this subsection (e)   are not to be viewed as facts and are subject to significant uncertainties and contingencies, that   no assurance can be given that any such projections or estimates will be realized, that actual   results may differ from projected results and such differences may be material).   5.26 Luxembourg Specific Representations.     (a) The head office (administration centrale), the place of effective   management (siège de direction effective) and (for the purposes of the Council Regulation   (EC) N° 1346/2000 of 29 May 2000 on insolvency proceedings, as amended), the center of   main interests (centre des intérêts principaux) of the Luxembourg Guarantor is located at the   place of its registered office (siège statutaire) in Luxembourg.    (b) The Luxembourg Guarantor does not carry out any activity in the   financial sector on a professional basis (as referred to in the Luxembourg law dated 5 April   1993 on the financial sector, as amended from time to time) or any activity requiring the   granting of a business license under the Luxembourg law dated 2 September 2011 governing     

 

56   110446369 v18      the access to the professions of skilled craftsman, tradesman, manufacturer, as well as to   certain liberal professions.   (c) The Luxembourg Guarantor complies with all requirements of the   Luxembourg law of 31 may 1999 on the domiciliation of companies, as amended, and all   related regulations.   (d) The Luxembourg Guarantor is not, and will not, as a result of its entry   into the Loan Documents or the performance of its obligations thereunder, be in a state of   cessation of payments (cessation des paiements), or be deemed to be in such state, and has not   lost, and will not, as a result of its entry into the Loan Documents or the performance of its   obligations thereunder, lose its creditworthiness (ébranlement de crédit), or be deemed to   have lost such creditworthiness and is not aware, or may be not reasonably be aware, of such   circumstances.   (e) The Luxembourg Guarantor is in compliance with any reporting   requirements applicable to it pursuant to the to the Central Bank of Luxembourg regulation   2011/8 or Regulation (EU) N°648/2012 of the European Parliament and of the Council dated   4 July 2012 on OTC derivatives, central counterparties and trade repositories.   5.27 Mesa Fire Insurance Proceeds.  Any loss or damage incurred to, and the repair   necessary for, the ASF Furnaces as a result of the May 26, 2015 fire at the Debtor’s Mesa   Facility is fully insured and will be fully covered by the cash insurance proceeds from   financially sound and reputable insurance companies which are not Affiliates of the Borrower.   ARTICLE VI   AFFIRMATIVE COVENANTS   So long as any Lender shall have any Commitment hereunder, any Loan or other   Obligation (other than contingent indemnification obligations for which no claim has been made)   hereunder shall remain unpaid or unsatisfied, the Borrower shall, and shall cause each Subsidiary   to:    6.01 Financial Statements.     (a) Annual Financial Statements:  Deliver to the Administrative Agent and   each Lender, in form and detail reasonably satisfactory to the Administrative Agent and the   Lenders, as soon as practicable, but in any event within 90 days (or, with respect to the Fiscal   Year ended December 31, 2014 and the Fiscal Year ended December 31, 2015, as soon as   practicable, but in any event on or prior to April 15, 2016), a consolidated balance sheet of   Borrower and its Subsidiaries as at the end of such Fiscal Year, and the related consolidated   statement of income or operations, changes in shareholders’ equity, and cash flows for such   Fiscal Year, setting forth in each case in comparative form the figures for the previous Fiscal   Year, all in reasonable detail, together with a Narrative Report, and prepared in accordance   with GAAP, and such consolidated statements to be audited and accompanied by a report and   opinion of Deloitte LLP or other independent certified public accountants of nationally   recognized standing reasonably acceptable to the Required Lenders (it being agreed that any   certified public accounting firm approved by the Bankruptcy Court shall be acceptable to the     

 

57   110446369 v18      Required Lenders), which report and opinion shall be to the effect that such consolidated   financial statements fairly present in all material respects the financial condition and results of   operations of Borrower and its Subsidiaries on a consolidated basis in accordance with   GAAP.   (b) Quarterly Financial Statements.  Deliver to the Administrative Agent   and each Lender, in form and detail reasonably satisfactory to the Administrative Agent and   the Required Lenders, as soon as available, but in any event within 60 days after the end of   each of the first three Fiscal Quarters of each Fiscal Year of Borrower (commencing with the   Fiscal Quarter ending September 30, 2015), a consolidated balance sheet of Borrower and its   Subsidiaries as at the end of such Fiscal Quarter, and the related consolidated statement of   income or operations and cash flows for such Fiscal Quarter and for the portion of Borrower’s   Fiscal Year then ended, setting forth in each case in comparative form the figures for the   corresponding Fiscal Quarter of the previous Fiscal Year and the corresponding portion of the   previous Fiscal Year, together with a Narrative Report, all in reasonable detail, such   consolidated statements to be, subject to the immediately following proviso, certified by the   chief executive officer, chief financial officer, treasurer or controller of Borrower as fairly   representing in all material respects the financial conditions, results of operations and cash   flows of Borrower and its Subsidiaries; provided that, (i) to the extent the audit report for the   financial statements required under Section 6.01(a) for Fiscal Year ended December 31, 2014,   have not been completed, the financial statements required under this Section 6.01(b) for   Fiscal Quarter ending on or around September 30, 2015 and (ii) to the extent the audit report   for the financial statements required under Section 6.01(a) for Fiscal Year ending on   December 31, 2015, have not been completed, the financial statements required under this   Section 6.01(b) for Fiscal Quarter ending on or around March 31, 2016, in each case, may be   delivered subject to disclaimers stating that they (w) are limited in scope and cover a limited   time period, (x) do not purport to represent financial statements prepared in accordance with   GAAP (provided, however, that Borrower shall use commercially reasonable efforts to   prepare the financial statements for any Fiscal Quarter in the Fiscal Year ending December 31,   2016 in compliance with GAAP), (y) are not intended to be fully reconciled to any financial   statements otherwise prepared or distributed by the Borrower and its Subsidiaries or any of   their Affiliates, and (z) are unaudited and are subject to further review and potential   adjustments.   (c) Monthly Reports.  Deliver to the Administrative Agent, the Advisor to   Lenders and each Lender willing to receive such information on a confidential basis without   any cleansing requirement, in form and detail substantially identical to corresponding reports   provided to the Advisor to Lenders prior to the Closing Date, as soon as available, but in any   event within 30 days after the end of each month (commencing with the month ending July   31, 2015): (i) the monthly operating reports provided to the Bankruptcy Court and (ii) a   variance report, showing comparisons of actual amounts for each line item against the   budgeted amounts for such line item in the Approved Budget for the preceding month and on   a cumulative basis for the period starting from the first day of the month in which the Closing   Date occurs through the end of the preceding month, accompanied by a narrative explanation   (any such report described in this clause (ii), a “Variance Report”).     

 

58   110446369 v18      (d) 13-Week Cash Flow Forecast.  Deliver to the Advisor to Lenders and   each Lender willing to receive such information on a confidential basis without any cleansing   requirement, as soon as available, but in any event no later than the dates set forth on   Schedule 6.01, a rolling thirteen (13) week cash flow forecast for the then succeeding 13-week   period, which shall be in form consistent with the thirteen (13) week cash flow forecast   previously provided to the Advisor to Lenders.   (e) [Reserved].   (f) Cash Balance Reporting.  Deliver to the Administrative Agent, the   Advisor to Lenders and each Lender willing to receive such information on a confidential   basis without any cleansing requirement, in form and detail reasonably satisfactory to   Required Lenders (i) as soon as available, but in any event no later than the dates set forth on   Schedule 6.01, (x) a weekly flash report setting forth the balance of the cash and Cash   Equivalents of each deposit account and each securities account held by the Borrower and   each of its Subsidiaries (other than any Chinese Subsidiaries) and (y) a bi-weekly flash report   setting forth the balance of the cash and Cash Equivalents of each deposit account and each   securities account held by the Chinese Subsidiaries, and (ii) as soon as available, but in any   event no later than the dates set forth in Schedule 6.01, a bi-weekly report setting forth the   computations in reasonable detail satisfactory to the Required Lenders demonstrating   compliance or non-compliance with the requirements set forth Sections 7.11, 7.17(e) and   7.17(f) hereof, in each case, as of the end of the preceding week.   6.02 Certificates; Other Information.  Deliver to the Administrative Agent for the   benefit of each Lender, in form and detail reasonably satisfactory to the Administrative Agent   and the Required Lenders:   (a) promptly after any request by the Administrative Agent or any Lender,   copies of any detailed audit reports, management letters or recommendations submitted to the   board of directors (or the audit committee of the board of directors) of Borrower or by   independent accountants in connection with the accounts or books of Borrower or any of its   Subsidiaries, or any audit of any of them;   (b) promptly after the same are available, copies of each annual report,   proxy or financial statement or other report or communication, if any, sent to the stockholders   of Borrower, and copies of all annual, regular, periodic and special reports and registration   statements, if any, which Borrower may file or be required to file with the SEC under   Section 13 or 15(d) of the Securities Exchange Act of 1934, or with any national securities   exchange, and in any case not otherwise required to be delivered to the Administrative Agent   pursuant hereto;   (c) promptly, and in any event within five (5) Business Days after receipt   thereof by any Loan Party or any Subsidiary thereof, copies of each written notice or other   written correspondence received from the SEC (or comparable agency in any applicable non-   U.S. jurisdiction) concerning any investigation or other inquiry related to an existing or   threatened  enforcement action by such agency regarding financial or other operational results   of any Loan Party or any Subsidiary thereof;     

 

59   110446369 v18      (d) promptly after the assertion or occurrence thereof, notice of any action   or proceeding against or of any noncompliance by any Loan Party or any of its Subsidiaries   with any Environmental Law or Environmental Permit that could reasonably be expected to   have a Material Adverse Effect; and   (e) together with the delivery of quarterly report pursuant to   Section 6.01(b), (i) a report supplementing Schedules 5.08(c) and 5.08(d), including an   identification of all owned and leased real property disposed of by any Loan Party thereof   during such Fiscal Year, a list and description (including the street address, county or other   relevant jurisdiction, state, record owner, book value thereof and, in the case of leases of   property, lessor, lessee, expiration date and annual rental cost thereof) of all real property   acquired or leased during such Fiscal Year and a description of such other changes in the   information included in such Schedules as may be necessary for such Schedules to be accurate   and complete; and (ii) a report setting forth (A) all registered patents and patent applications   of each Loan Party; (B) all registered trademarks, service marks and trade dress of each Loan   Party; (C) all trade names, business names and corporate names of each Loan Party; and   (D) all registered copyrights, including, without limitation, registered copyrights in computer   software, internet web sites and the content thereof of each Loan Party; each such report to be   signed by a Responsible Officer of the Borrower and to be in a form reasonably satisfactory to   the Administrative Agent;   (f) promptly, such additional information regarding the business, financial   or corporate affairs of Borrower or any Subsidiary, or compliance with the terms of the Loan   Documents, as the Administrative Agent or any Lender may from time to time reasonably   request.   Documents required to be delivered pursuant to Section 6.01(a) or (b) or Section 6.02(b)   (to the extent any such documents are included in materials otherwise filed with the SEC) may   be delivered electronically and if so delivered, shall be deemed to have been delivered on the   date (i) on which Borrower posts such documents, or provides a link thereto on Borrower’s   website on the internet at the website address listed on Schedule 11.02; or (ii) on which such   documents are posted on Borrower’s behalf on an internet or intranet website, if any, to which   each Lender and the Administrative Agent have access (whether a commercial, third-party   website or whether sponsored by the Administrative Agent); provided that:  (i) upon request,   Borrower shall deliver paper copies of such documents to the Administrative Agent or any   Lender that requests Borrower to deliver such paper copies until a written request to cease   delivering paper copies is given by the Administrative Agent or such Lender and (ii) Borrower   shall notify the Administrative Agent and each Lender (by telecopier or electronic mail) of the   posting of any such documents and provide to the Administrative Agent by electronic mail   electronic versions (i.e., soft copies) of such documents.  The Administrative Agent shall have no   obligation to request the delivery or to maintain copies of the documents referred to above, and   in any event shall have no responsibility to monitor the contents of such documents or   compliance by any Loan Party with any such request for delivery, and each Lender shall be   solely responsible for requesting delivery to it or maintaining its copies of such documents.   Borrower hereby acknowledges that (a) the Administrative Agent will make available to   the Lenders materials and/or information provided by or on behalf of the Borrower hereunder     

 

60   110446369 v18      (collectively, “Borrower Materials”) by posting the Borrower Materials on IntraLinks or another   similar electronic system (the “Platform”) and (b) certain of the Lenders (each, a “Public   Lender”) may have personnel who do not wish to receive material non-public information with   respect to the Borrower or any of their Affiliates, or the respective securities of any of the   foregoing, and who may be engaged in investment and other market-related activities with   respect to such Persons’ securities.  The Borrower hereby agrees that so long as any Loan Party   is the issuer of any outstanding debt or equity securities that are registered or issued pursuant to a   private offering or is actively contemplating issuing any such securities it will use commercially   reasonable efforts to identify that portion of the Borrower Materials that may be distributed to the   Public Lenders and that (v) all such Borrower Materials shall be clearly and conspicuously   marked “PUBLIC” which, at a minimum, shall mean that the word “PUBLIC” shall appear   prominently on the first page thereof; (w) by marking Borrower Materials “PUBLIC,” the   Borrower shall be deemed to have authorized the Administrative Agent and the Lenders to treat   such Borrower Materials as not containing any material non-public information (although it may   be sensitive and proprietary) with respect to such Loan Party or its securities for purposes of   United States Federal and state securities laws (provided, however, that to the extent such   Borrower Materials constitute Information, they shall be treated as set forth in Section 11.07);   (x) all Borrower Materials marked “PUBLIC” are permitted to be made available through a   portion of the Platform designated “Public Side Information;” (y) the Borrower shall publicly   disclose all Borrower Materials marked “PUBLIC” concurrently with the delivery thereof to the   Administrative Agent or any Public Lender; and (z) the Administrative Agent shall be entitled to   treat the Borrower Materials that are not marked “PUBLIC” as being suitable only for posting on   a portion of the Platform not designated “Public Side Information.”  For the avoidance of doubt,   any materials and/or information made available by the Borrower pursuant to Section 6.01(a),   Section 6.01(b) and Section 6.03(a) shall be “PUBLIC”. The Administrative Agent shall have no   duty to review or evaluate any Borrower Materials, other than to comply with the Borrower’s   instructions regarding “Public Side Information.”   6.03 Notices.  Promptly deliver to the Administrative Agent a written notice to be   further distributed by the Administrative Agent, subject to the last paragraph of Section 6.02, to   the Lenders:   (a) of the occurrence of any Default;   (b) of any matter that has resulted or could reasonably be expected to result   in a Material Adverse Effect, including (i) breach or non-performance of, or any default   under, a Contractual Obligation of Borrower or any Subsidiary; (ii) any dispute, litigation,   investigation, proceeding or suspension between Borrower or any Subsidiary and any   Governmental Authority; or (iii) the commencement of, or any material adverse development   in, any litigation or proceeding affecting Borrower or any Subsidiary, including pursuant to   any applicable Environmental Laws;   (c) of (i) any Material Contract of the Borrower or any of its Subsidiaries   being terminated or amended in a manner that is materially adverse to the Borrower or any   Subsidiary, or (ii) any new Material Contract being entered into (and the Borrower shall   deliver copies of such material amendments or new Material Contracts to the Administrative   Agent);     

 

61   110446369 v18      (d) of the occurrence of any ERISA Event; and   (e) of any material change in accounting policies or financial reporting   practices by any Loan Party or any Subsidiary thereof.   Each notice pursuant to Section 6.03 shall be accompanied by a statement of a   Responsible Officer of the Borrower setting forth details of the occurrence referred to therein and   stating what action the Borrower have taken and proposes to take with respect thereto.  Each   notice pursuant to Section 6.03(a) shall describe with particularity any and all provisions of this   Agreement and any other Loan Document that have been breached.   6.04 Payment of Obligations.  Pay and discharge as the same shall become due and   payable, all its obligations and liabilities, including (a) all tax liabilities, assessments and   governmental charges or levies upon it or its properties or assets, unless the same are being   contested in good faith by appropriate proceedings diligently conducted and adequate reserves in   accordance with GAAP are being maintained by Borrower or such Subsidiary; (b) all lawful   claims which, if unpaid, would by law become a Lien upon its property; and (c) all Indebtedness,   as and when due and payable, but subject to any subordination provisions contained in any   instrument or agreement evidencing such Indebtedness, except where the failure to do so, in each   of clauses (a) through (c), could not reasonably be expected to have a Material Adverse Effect.   6.05 Preservation of Existence, Etc.  (a)  Preserve, renew and maintain in full force and   effect its legal existence and good standing (or the applicable foreign equivalent, if applicable)   under the Laws of the jurisdiction of its organization except in a transaction permitted by Section   7.04 or 7.05, except, other than with respect to a Loan Party or a Debtor, as would not reasonably   be expected to have a Material Adverse Effect; (b) take all reasonable action to maintain all   rights, privileges, permits, licenses and franchises necessary or desirable in the normal conduct   of its business, except to the extent that failure to do so could not reasonably be expected to have   a Material Adverse Effect and except with respect to Reclamation Dispositions; and (c) preserve   or renew all of its registered patents, trademarks, trade names and service marks, the non-   preservation of which could reasonably be expected to have a Material Adverse Effect.   6.06 Maintenance of Properties.  (a) Except with respect to Reclamation Dispositions,   maintain, preserve and protect all of its properties and equipment necessary in the operation of its   business in good working order and condition, ordinary wear and tear and use and damage or   loss from fire, other casualty or condemnation excepted; and (b) make all necessary repairs   thereto and renewals and replacements thereof, except, in the case of clause (a) and (b), where   the failure to do so could not reasonably be expected to have a Material Adverse Effect.   6.07 Maintenance of Insurance. (a) Maintain with financially sound and reputable   insurance companies not Affiliates of Borrower, in such amounts, with such deductibles and   covering such risks as are customarily (as determined in good faith by a Responsible Officer of   Borrower) carried by companies engaged in similar businesses and owning similar properties in   localities where Borrower or the applicable Subsidiary operates, (b) use best efforts to file or   assert an insurance claim for any potential loss, damage or repair necessary for the ASF Furnaces   as a result of the May 26, 2015 fire at the Debtor’s Mesa Facility prior to any applicable bar date   or deadline under the relevant insurance policies or applicable Law, as such dates may be     

 

62   110446369 v18      extended and (c) within 30 days of receipt of the insurance proceeds pursuant to clause (b)   above, use or commit to use such insurance proceeds to remediate any such loss, damage or   repair with respect to ASF Furnaces as a result of the May 26, 2015 fire at the Debtor’s Mesa   Facility.   6.08 Compliance with Laws.  Except as set forth on Schedule 5.16, comply in all   material respects with the requirements of all Laws and all orders, writs, injunctions and decrees   (including, without limitation, all Laws, rules and regulations related to employee benefit, social   security and labor laws) applicable to it or to its business or property, except in such instances in   which (a) such requirement of Law or order, writ, injunction or decree is being contested in good   faith by appropriate proceedings diligently conducted; or (b) the failure to comply therewith   could not reasonably be expected to have a Material Adverse Effect.    6.09 Books and Records.  (a) Maintain proper books of record and account, in which   full, true and correct entries in conformity with GAAP consistently applied shall be made of all   financial transactions and matters involving the assets and business of Borrower or such   Subsidiary, as the case may be; and (b) maintain such books of record and account in material   conformity with all applicable requirements of any Governmental Authority having regulatory   jurisdiction over Borrower or such Subsidiary, as the case may be.   6.10 Inspection Rights.  Permit representatives and independent contractors of the   Administrative Agent and each Lender to visit and inspect any of its properties, to examine its   corporate, financial and operating records, and make copies thereof or abstracts therefrom, and to   discuss its affairs, finances and accounts with its directors, officers, and independent public   accountants, all at the expense of the Borrower and at such reasonable times during normal   business hours and as often as may be reasonably desired, upon reasonable advance notice to the   Borrower; provided that excluding any such visits and inspections during the continuation of an   Event of Default, only the Administrative Agent on behalf of the Lenders may exercise rights   under this Section 6.10 and the Administrative Agent shall not exercise such rights more often   than two (2) times during any calendar year absent the existence of an Event of Default and only   one (1) such time shall be at the Borrower’ expense; provided, however, that when an Event of   Default exists the Administrative Agent (or any of its representatives or independent contractors)   may do any of the foregoing at the expense of the Borrower at any time during normal business   hours and without advance notice.   6.11 Use of Proceeds.  The proceeds of the Loans shall be used in accordance with the   terms of the Approved Budget, including to (i) pay for the fees, costs and expenses incurred in   connection with the Transactions and the Chapter 11 Cases and (ii) to fund working capital of the   Loan Parties (including, without limitation, payments of fees and expenses to professionals under   Section 328 and 331 of the Bankruptcy Code and administrative expenses of the kind specified   in Section 503(b) of the Bankruptcy Code incurred in the ordinary course of business of the Loan   Parties or otherwise approved by the Bankruptcy Court (and not otherwise prohibited under this   Agreement)).   6.12 Compliance with Environmental Laws.  Comply, and take all commercially   reasonable measures to cause all lessees and other Persons subject to its legal control operating   or occupying its properties to comply, in all material respects, with all applicable Environmental     

 

63   110446369 v18      Laws and Environmental Permits; obtain and renew all material Environmental Permits   necessary for its operations and properties; and, in each case to the extent required by   Environmental Laws, conduct any investigation, study, sampling and testing, and undertake any   cleanup, removal, remedial or other action necessary to remove and clean up Hazardous   Materials from any of its properties in accordance with and to the extent required by all   applicable Environmental Laws; provided, however, that neither Borrower nor any of its   Subsidiaries shall be required to undertake any such cleanup, removal, remedial or other action   to the extent that its obligation to do so is being contested in good faith and by proper   proceedings and appropriate reserves are being maintained with respect to such circumstances in   accordance with GAAP.   6.13 Preparation of Environmental Reports.  At the request of the Required Lenders   from time to time (but no more frequently than annually in the absence of cause), provide to the   Lenders within 60 days after such request (or such longer time as is reasonably necessary under   the circumstances), at the expense of the Borrower, an environmental site assessment report of   reasonable scope for any of the properties described in such request, prepared by an   environmental consulting firm reasonably acceptable to the Required Lenders, indicating the   presence or absence of Hazardous Materials and the estimated cost of any legally required   compliance, removal or remedial action in connection with any Hazardous Materials on such   properties.   6.14 Further Assurances.     (a) Promptly upon the reasonable request by the Administrative Agent, or   any Lender through the Administrative Agent, the Borrower shall (a) correct any material   defect or error that may be discovered in any Loan Document or in the execution,   acknowledgment, filing or recordation thereof, (b) do, execute, acknowledge, deliver, record,   re-record, file, re-file, register and re-register any and all such further acts, deeds, certificates,   assurances and other instruments as are necessary or advisable (as reasonably determined by   the Required Lenders) or that the Administrative Agent, or any Lender through the   Administrative Agent, may reasonably require from time to time in order to (i) carry out more   effectively the purposes of the Loan Documents, (ii) to the fullest extent permitted by   applicable law, subject any Loan Party’s or any of its Subsidiaries’ properties, assets, rights or   interests to the Liens now or hereafter intended to be covered by any of the Collateral   Documents, (iii) perfect and maintain the validity, effectiveness and priority of any of the   Collateral Documents and any of the Liens intended to be created thereunder and (iv) assure,   convey, grant, assign, transfer, preserve, protect and confirm more effectively unto the   Secured Parties the rights granted or now or hereafter intended to be granted to the Secured   Parties under any Loan Document or under any other instrument executed in connection with   any Loan Document to which any Loan Party or any of its Subsidiaries is or is to be a party,   and cause each of its Subsidiaries to do so, (c) in case of the transaction permitted pursuant to   Section 7.04, (i) ensure the continuous maintenance of the validity, effectiveness and priority   of the Liens and security interest granted (or purported to be granted) to the Secured Parties   under the Collateral Documents and the Liens intended to be created thereunder and   (ii) execute, acknowledge, deliver, record, re-record, file, re-file, register and re-register any   and all such further acts, deeds, certificates, assurances and other instruments as are necessary     

 

64   110446369 v18      or that the Administrative Agent, or any Lender through the Administrative Agent, may   reasonably require.   (b) Upon the formation or acquisition of any new direct or indirect   Subsidiary (other than any Excluded Subsidiary) by any Loan Party or the cessation of any   Subsidiary to be an Immaterial Subsidiary or an Excluded Subsidiary, then Borrower shall,   with respect to such Subsidiary, at the expense of the Borrower for any such Subsidiary,   within 5 days after such formation, acquisition or cessation, cause such Subsidiary, and cause   each direct and indirect parent of such Subsidiary (if it has not already done so) to the extent   such entity is otherwise required to become a Guarantor hereunder, to (i) duly execute and   deliver to the Administrative Agent a Guaranty or Guaranty supplement, in form reasonably   satisfactory to the Administrative Agent, guaranteeing the other Loan Parties’ Obligations, (ii)   duly execute and deliver to the Administrative Agent Deposit Account Control Agreements,   Securities Account Control Agreement, Security Agreement Supplement, IP Security   Agreement Supplements and other security and pledge agreements, in form reasonably   satisfactory to the Administrative Agent (including delivery of all Pledged Equity in and of   such Subsidiary, and other instruments of the type specified in Section 4.01(a)(iii)), in each   case with respect to any Collateral, securing payment of all the Obligations of such Subsidiary   or such parent, as the case may be, and constituting Liens on all such real and personal   properties, (iii) take whatever action (including the filing of the UCC financing statements (or   foreign equivalent), the giving of notices and the endorsement of notices on title documents)   that may be necessary or advisable (in each case, as reasonably determined by the Required   Lenders) or that the Administrative Agent may reasonably request in order to vest in the   Administrative Agent (or in any representative of the Administrative Agent designated by it)   valid and subsisting Liens on the Collateral purported to be subject to, as applicable, the   Deposit Account Control Agreements, Securities Account Control Agreement, Security   Agreement Supplement, IP Security Agreement Supplements and security and pledge   agreements delivered pursuant to this Section 6.14, enforceable against all third parties in   accordance with their terms, and (iv) deliver to the Administrative Agent, upon the reasonable   request of the Administrative Agent or the Required Lenders in their reasonable discretion, a   signed copy of a customary opinion or opinions, addressed to the Administrative Agent and   the other applicable Secured Parties, of counsel for the Loan Parties (or, if reasonably   acceptable to the Administrative Agent, in the case of a formation or acquisition of a Foreign   Subsidiary in a jurisdiction where such opinions are customarily provided by lenders’ counsel,   at the Borrower’s cost and expense, counsel for the Lenders) reasonably acceptable to the   Administrative Agent or the Required Lenders as to the matters contained in clauses (i),   (ii) and (iii) above, and as to such other matters as the Administrative Agent or the Required   Lenders may reasonably request.   (c) As soon as practicable, and in any event not later than five (5) Business   Days after the date that the Final DIP Order is entered, each Loan Party shall execute and   deliver to the Administrative Agent notices of the Final DIP Order, abstracts of the Final DIP   Order or any other documents reasonably requested by the Administrative Agent or the   Required Lenders in connection with recording or registering any security interests or liens   against any Real Property of the Loan Parties.  For the avoidance of doubt, no mortgages will   be filed for the benefit of the Secured Parties against any Real Property owned by the Loan   Parties on the Closing Date.     

 

65   110446369 v18      (d) At any time upon request of the Administrative Agent, promptly   execute and deliver any and all further instruments and documents and take all such other   action as is necessary or advisable (as reasonably determined by the Required Lenders) or as   reasonably requested by the Administrative Agent in obtaining the full benefits of the Loan   Documents, or (as applicable) in perfecting and preserving the Liens on the Collateral,   including such guaranties, Security Agreement Supplement, IP Security Agreement   Supplements and other security and pledge agreements.   6.15 Pleadings.  Furnish the Administrative Agent with reasonable prior notice of (and   copies of) any filing or distribution of all pleadings, motions, applications, judicial information,   financial information and other documents to be filed by or on behalf of any Loan Party with the   Bankruptcy Court or the Chapter 11 Cases, or to be distributed by or on behalf of any Loan Party   to any official committee appointed in the Chapter 11 Cases, that are related to the Facility   (except that with respect to pleadings, motions or other filings for which, despite such Loan   Party’s commercially reasonable efforts, reasonable prior notice is impracticable, Borrower shall   be required to furnish the same no later than concurrently with such filing or distribution thereof,   as applicable).   6.16 Bi-Weekly Calls.  Hold bi-weekly calls with the Lenders willing to receive such   information on a confidential basis without any cleansing requirement, the Advisor to Lenders   and their counsel, to (i) discuss the status of and updates to the sale of the furnaces of the   Borrower or any of its Subsidiaries, (ii) address issues or matters that are in scope or nature   consistent with the issues or matters addressed on past bi-weekly calls, and (iii) if applicable,   discuss the efforts to reduce the aggregate amount of cash or Cash Equivalents on hand held by   the Chinese Subsidiaries if the Chinese Subsidiaries are required to use commercially reasonably   efforts to achieve such reduction as set forth in the proviso of Section 7.17(f).   6.17 Milestones.  Comply with the following milestones (unless extended or waived by   the Required Lenders):   (a) On or prior to January 8, 2016, the Debtors shall have filed a plan of   reorganization contemplating a repayment in full in cash of the Facility upon the   consummation of such plan of reorganization (the “Acceptable Plan”) and the disclosure   statement with respect to the Acceptable Plan (the “Disclosure Statement” and together with   the Acceptable Plan, the “Chapter 11 Plan”);   (b) On or prior to February 19, 2016, the Bankruptcy Court shall have   entered an order approving the Disclosure Statement;   (c) On or prior to April 8, 2016, the Bankruptcy Court shall have entered   an order confirming the Chapter 11 Plan; and   (d) On or prior to April 27, 2016, the Effective Date of the Chapter 11 Plan   shall have occurred.   6.18 Intercompany Agreement Remedies.  The Loan Parties, to the extent applicable,   shall enforce all available remedies promptly upon any default or event of default under the   Intercompany Agreement, including, without limitation, giving notice of any defaults as required     

 

66   110446369 v18      to satisfy any condition to an event of default, except as otherwise agreed by the Required   Lenders.    ARTICLE VII      NEGATIVE COVENANTS   Borrower agrees that so long as any Lender shall have any Commitment hereunder, any   Loan or other Obligation (other than contingent indemnification obligations for which no claim   has been made) hereunder shall remain unpaid or unsatisfied, the Borrower shall not, nor shall it   permit any Subsidiary to, directly or indirectly:   7.01 Liens.  Create, incur, assume or suffer to exist any Lien upon any of its property,   assets or revenues, whether now owned or hereafter acquired, or sign or file (or authorize to be   filed) under the UCC (or other applicable Law) of any jurisdiction a financing statement (or   similar filings under other applicable Law) that names the Borrower or any of its Subsidiaries as   debtor or make a collateral assignment of any accounts or other right to receive income, other   than the following:   (a) Liens pursuant to any Loan Document;   (b) Liens existing on the date hereof and listed on Schedule 7.01;   (c) Liens for taxes or governmental charges not yet due and payable or   which are being contested in good faith and by appropriate proceedings diligently conducted,   if adequate reserves with respect thereto are maintained on the books of the applicable Person   to the extent required in accordance with GAAP;   (d) carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s or   other like Liens arising in the ordinary course of business which are not overdue for a period   of more than 45 days or which are being contested in good faith and by appropriate   proceedings diligently conducted, if adequate reserves with respect thereto are maintained on   the books of the applicable Person to the extent required in accordance with GAAP;   (e) pledges or deposits in the ordinary course of business in connection   with workers’ compensation, unemployment insurance and other social security legislation,   other than any Lien imposed by ERISA;   (f) deposits to secure the performance of bids, trade contracts and leases   (other than Indebtedness for borrowed money), statutory obligations, surety and appeal bonds,   performance bonds and other obligations of a like nature incurred in the ordinary course of   business;   (g) all Permitted Encumbrances;    (h) Liens securing Indebtedness permitted under Section 7.02(f); provided   that (i) such Liens do not at any time encumber any property (except for accessions to such   property) other than the property financed by such Indebtedness and the proceeds and     

 

67   110446369 v18      products thereof (except that financings of equipment provided by one lender may be cross-   collateralized to other financings of equipment provided by such lender) and (ii) the   Indebtedness secured thereby does not exceed the cost or fair market value, whichever is   lower, of the property being acquired on the date of acquisition;   (i) (i) leases, licenses, subleases or sublicenses granted to other Persons in   the ordinary course of business (including with respect to intellectual property and software)   which do not (A) interfere in any material respect with the business of Borrower or any of its   Subsidiaries, or (B) secure any Indebtedness for borrowed money or (ii) the rights reserved or   vested in any Person by the terms of any lease, license, franchise, grant or permit held by   Borrower or any of the Subsidiaries or by a statutory provision, to terminate any such lease,   license, franchise, grant or permit, or to require annual or periodic payments as a condition to   the continuance thereof;   (j) 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;   (k) Liens (i) of a collection bank arising under Section 4-210 of the UCC   on items in the course of collection or (ii) in favor of a banking institution or securities   intermediary arising as a matter of law encumbering deposits (including the right of set-off)   and which are within the general parameters customary in the banking industry;   (l) Liens existing on property at the time of its acquisition or, subject to the   prior approval of the Required Lenders, existing on the property of any Person that at the time   such Person becomes a Subsidiary or is consolidated with the Borrower or any Subsidiary, in   each case, so long as such Lien was not incurred in connection with, or in contemplation of,   such the acquisition of such property or such Person becoming a Subsidiary;   (m) Liens arising out of conditional sale, title retention, consignment or   similar arrangements for sale of goods entered into by Borrower or any of the Subsidiaries in   the ordinary course of business and permitted under this Agreement;   (n) any interest or title of a lessor, sublessor, licensor or sublicensor under   any leases, subleases, licenses or sublicenses entered into by Borrower or any Subsidiary in   the ordinary course of business;   (o) Liens created by the Intercompany Agreement;    (p) Ground leases in respect of real property on which facilities owned or   leased by Borrower or any of its Subsidiaries are located;    (q) Liens securing obligations that do not constitute Indebtedness in an   aggregate principal amount not to exceed $1,000,000;    (r) Liens in the assets of any Hong Kong Subsidiary in favor of the   Borrower or any of its Domestic Subsidiaries that is a Loan Party; and     

 

68   110446369 v18      (s) Liens on cash or Cash Equivalents from customer deposits to cash   collateralize letters of credit issued under the L/C Facility (which, for the avoidance of doubt,   will not secure the Obligations), provided that the amount of such cash or Cash Equivalents   shall not exceed 105% of the face amount of all such letters of credit, provided further, to the   extent that the amount of the applicable customer deposit is less than the amount required to   cash collateralize letter of credit (which cash or Cash Equivalents, for the avoidance of doubt,   shall not exceed 105% of the face amount of such letter of credit), then the Borrower or the   applicable Subsidiary of the Borrower shall be permitted to use cash on hand to cash   collateralize such letter of credit, but not to exceed 5% of the face amount of such letter of   credit.   7.02 Indebtedness.  Create, incur, assume or suffer to exist any Indebtedness, except:   (a) Subject to Section 7.03, Indebtedness of the Borrower or a Subsidiary   of the Borrower owed to the Borrower or a wholly-owned Subsidiary of Borrower, which   Indebtedness shall (i) in the case of Indebtedness owed to a Loan Party, constitute “Pledged   Debt” under the Security Agreement, (ii) in the case of such Indebtedness owed by a Loan   Party to a Subsidiary which is not a Loan Party, be governed by the Intercompany   Subordination Agreement, and (iii) be otherwise permitted under the provisions of   Section 7.03;   (b) Indebtedness under the Loan Documents;   (c) Indebtedness outstanding on the date hereof and listed on Schedule 7.02;   (d) Indebtedness consisting of reimbursement obligations in respect of the   letters of credit issued under the L/C Facility not to exceed $15,000,000;   (e) Guarantees of the Borrower or any Subsidiary in respect of   Indebtedness of a Loan Party otherwise permitted hereunder of any such Person;   (f) Indebtedness in respect of Capitalized Leases, Synthetic Lease   Obligations and purchase money obligations for fixed or capital assets within the limitations   set forth in Section 7.01(h); provided, however, that the aggregate amount of all such   Indebtedness at any one time outstanding shall not exceed $1,000,000;    (g) Indebtedness incurred in the ordinary course of business under customs,   stay, appeal, performance and surety bonds;   (h) Indebtedness consisting of (i) insurance premium financing which have   been approved by order of the Bankruptcy Court or (ii) take or pay obligations contained in   supply arrangement in the ordinary course of business;   (i) Indebtedness and other obligations in respect of netting services,   overdraft protections and similar arrangements, in each case, in connection with cash   management or treasury services arrangements and deposit accounts in the ordinary course of   business, consistent with past practices;     

 

69   110446369 v18      (j) Indebtedness incurred under the Intercompany Agreement, which, in   the case of Indebtedness owed to a Loan Party, shall constitute “Pledged Debt” under the   Security Agreement; and   (k) Indebtedness incurred by the Borrower or its Subsidiaries in connection   with a Disposition permitted under this Agreement pursuant to agreements providing for   indemnification.    7.03 Investments.  Make or hold any Investments, except:   (a) Investments in cash and Cash Equivalents;   (b) advances to officers, directors and employees of Borrower and   Subsidiaries in an aggregate amount not to exceed $500,000 at any time outstanding, for   travel, entertainment, relocation and analogous ordinary business purposes;   (c) (i) Investments by Borrower and its Subsidiaries in their respective   Subsidiaries outstanding on the date hereof, (ii) additional Investments by Borrower and its   Subsidiaries in Borrower or its Domestic Subsidiaries that are Loan Parties, in each case,   provided that, any such Investment by non-Loan Parties in Loan Parties taking the form of a   loan or advance is subject to the terms of the Intercompany Subordination Agreement, (iii)   Investment by a non-Loan Party (other than Hong Kong Subsidiary) in another non-Loan   Party or Luxembourg Guarantor, (iv) advances by any Hong Kong Subsidiary to any non-   Loan Party for services described in Section 7.08(b), (v) [Reserved] and (vi) Permitted Hong   Kong Debtor Transfers;   (d) Investments consisting of extensions of credit in the nature of accounts   receivable or notes receivable arising from the grant of trade credit or settlement of accounts   in the ordinary course of business, and Investments received in satisfaction or partial   satisfaction thereof from financially troubled account debtors to the extent reasonably   necessary in order to prevent or limit loss;   (e) Guarantees permitted by Section 7.02(e);   (f) Investments existing on the date hereof (other than those referred to in   Section7.03(c)(i)) set forth on Schedule 5.08(g);    (g) Investments in the form of intercompany payables pursuant to the   Intercompany Agreement;    (h) Investments made as a result of the receipt of non-cash consideration   from a sale, transfer or other disposition of any asset in compliance with Section 7.05;    (i) Permitted Acquisitions; and    (j) Investments in the ordinary course of business consisting of (i) UCC   Article 3 endorsements for collection or deposit and (ii) UCC Article 4 customary trade   arrangements with customers consistent with past practices.     

 

70   110446369 v18      7.04 Fundamental Changes.  Merge, dissolve, liquidate, consolidate with or into   another Person, or Dispose of (whether in one transaction or in a series of transactions) all or   substantially all of its assets (whether now owned or hereafter acquired) to or in favor of any   Person, except that, so long as no Default exists or would result therefrom:   (a) (i) any Subsidiary that is a Loan Party may merge with, or dissolve,   liquidate or consolidate with or into, (A) the Borrower, provided that the Borrower shall be   the continuing or surviving Person, or (B) any one or more other Domestic Subsidiaries that   are Loan Parties, and (ii) any Subsidiary that is not a Loan Party (other than a Hong Kong   Subsidiary) may merge with, or dissolve, liquidate or consolidated with or into, another   Subsidiary that is not a Loan Party; and    (b) (i) any Subsidiary that is a Loan Party may Dispose of all or   substantially all of its assets (upon voluntary liquidation or otherwise) to the Borrower or to   another Domestic Subsidiary that is a Loan Party, and (ii) any Subsidiary which is not a Loan   Party (other than a Hong Kong Subsidiary) may Dispose of all or substantially all of its assets   (upon voluntary liquidation or otherwise) to another Subsidiary which is not a Loan Party.   7.05 Dispositions.  Make any Disposition or enter into any agreement to make any   Disposition, except:   (a) Dispositions of damaged, obsolete or worn out property, whether now   owned or hereafter acquired, in the ordinary course of business;   (b) Dispositions of inventory in the ordinary course of business;   (c) (i) Dispositions of property by (x) any Loan Party to Borrower or any   Domestic Subsidiary that is a Loan Party or (y) any Subsidiary that is not a Loan Party to any   other Subsidiary that is not a Loan Party or to any Loan Party, provided that any Hong Kong   Subsidiary shall not make any Dispositions to any non-Loan Party or any Guarantor that is not   a Domestic Subsidiary pursuant to this clause (x), and (ii) Dispositions of furnace components   by any Chinese Subsidiary to any Hong Kong Subsidiary in the ordinary course of business,   consistent with past practices and on fair and reasonable terms as favorable to such Hong   Kong Subsidiary as would be obtainable by such Hong Kong Subsidiary in an arm’s length   transaction with a Person other than an Affiliate;   (d) Dispositions permitted by Section 7.04;   (e) Disposition of ASF Furnaces pursuant to the Apple Settlement   Agreement, provided, 100% of the purchase price for such Disposition paid Borrower or such   Subsidiary shall be in cash, and, to the extent applicable, the intercompany payment   obligations arising in connection with such disposition of ASF Furnaces pursuant to the terms   of the Intercompany Agreement shall be satisfied pursuant to the terms thereof;   (f) Disposition of assets (other than the ASF Furnaces) located at the   Debtors’ Mesa Facility, provided that 100% of the purchase price for such Disposition shall   be in cash;      

 

71   110446369 v18      (g) Disposition of advance sapphire materials group and Hyperion business,   provided that 100% of the purchase price for such Disposition shall be in cash;   (h) intercompany Dispositions contemplated in the Intercompany   Agreement;   (i) Dispositions by Borrower and its Subsidiaries not otherwise permitted   under this Section 7.05 not to exceed $2,000,000 in the aggregate; provided that (i) at the time   of such Disposition, no Event of Default shall exist or would result from such Disposition and   (ii) with respect any Disposition or a series of related Disposition, the purchase price for such   asset shall be at least 75% in cash;   (j) Dispositions of Cash Equivalents in the ordinary course of business;   (k) the non-recourse sale or discount by the Borrower or any Subsidiary of   overdue accounts receivable arising in the ordinary course of business in connection with the   compromise or collection thereof;    (l) leases, subleases and non-exclusive licensing or sublicensing in the   ordinary course of business that do not (x) interfere in any material respect with the business   of Borrower or any of the Subsidiaries or (y) secure any Indebtedness;    (m) Involuntary Disposition of assets (to the extent not reimbursed or   expected to be reimbursed by insurance where the carrier has not denied responsibility and   which are not being contested in good faith or where such contest has been denied by a court   of applicable jurisdiction) not to exceed $5,000,000 in the aggregate;   (n) Reclamation Dispositions;   (o) [Reserved]    (p) Dispositions of tenant improvements to the Borrower’s (or its   applicable Subsidiary’s) lease of the premises located in Salem, Massachusetts; and   (q) Dispositions consisting of Permitted Hong Kong Debtor Transfers.   provided, however, that any Disposition pursuant to Section 7.05(a) through Section 7.05(g),   Section 7.05(i), Section 7.05(j) and [Reserved] shall be for fair market value, as determined in   good faith by Borrower.    7.06 Restricted Payments.  Declare or make, directly or indirectly, any Restricted   Payment, or incur any obligation (contingent or otherwise) to do so, or issue or sell any Equity   Interests or accept any capital contributions, except that each Subsidiary of the Borrower may   make Restricted Payments to Borrower and another Subsidiary of the Borrower (or in the case of   any non-wholly owned Subsidiaries, to the Borrower or any Subsidiary that is a direct or indirect   parent of such Subsidiary and to each other owner of Equity Interests of such Subsidiary on a pro   rata basis (or more favorable basis from the perspective of the Borrower or such Subsidiary)   based on their relative ownership interests).      

 

72   110446369 v18      7.07 Change in Nature of Business.  Engage in any material line of business   substantially different from those lines of business conducted by Borrower and its Subsidiaries   on the date hereof or any business reasonably related or ancillary thereto, or a reasonable   extension thereof.   7.08 Transactions with Affiliates.  Enter into any transaction of any kind with any   Affiliate of the Borrower, other than (a) transactions among Borrower and any Domestic   Subsidiary that is a Loan Party, (b) transactions among any Hong Kong Subsidiary and any other   non-Loan Party relating to the provision of (i) installation, maintenance and warranty services in   the ordinary course of business, consistent with past practices and (ii) financial services, in each   case, on fair and reasonable terms as favorable to such Hong Kong Subsidiary as would be   obtainable by such Hong Kong Subsidiary in an arm’s length transaction with a Person other   than an Affiliate, (c) so long as, in each case, otherwise permitted by the terms of this Agreement,   (i) reasonable and customary fees, indemnification and similar arrangements, consulting fees,   employee salaries, bonuses or employment agreements, compensation or employee benefit   arrangements, incentive and severance arrangements with any officer, director or employee of a   Loan Party entered into in the ordinary course of business and (ii) any transaction made in   compliance with the provision of Section 7.03(c), 7.05(c) or 7.05(q), (d) ordinary course   transactions consistent with past practices and on fair and reasonable terms as favorable to the   Borrower or such Subsidiary as would be obtainable by the Borrower or such Subsidiary in an   arm’s length transaction with a Person other than an Affiliate pursuant to the agreements in effect   as of the Closing Date and as set forth on Schedule 7.08, (e) transactions among Borrower and its   Subsidiaries contemplated in the Intercompany Agreement, and (f) transactions among a non-   Loan Party (other than any Hong Kong Subsidiary) and another non-Loan Party (other than a   Hong Kong Subsidiary).   7.09 Burdensome Agreements; Negative Pledges.  Enter into or permit to exist any   Contractual Obligation (other than this Agreement or any other Loan Document) that limits the   ability (i) of any Subsidiary to make Restricted Payments to any Loan Party or to otherwise   transfer property to or invest in any Loan Party, except for any agreement in effect (A) on the   Closing Date and set forth on Schedule 7.09, (ii) of any Subsidiary (other than any Excluded   Subsidiary) to Guarantee the Indebtedness of the Borrower or (iii) of Borrower or any Subsidiary   (other than any Excluded Subsidiary) to create, incur, assume or suffer to exist Liens on property   of such Person; provided, however, that the foregoing shall not apply to Contractual Obligations   that (1) are customary restrictions that arise in connection with any Disposition permitted by   Section 7.05, and (2) are customary restrictions on leases, subleases, licenses or asset sale   agreements otherwise permitted hereby so long as such restrictions may relate to the assets   subject thereto.   7.10 Budget Variance.     (a) As of the last day of each month ending on or after December 31, 2015   (in each case, the “Current Cash Receipts Month”), as set forth in the Variance Report for   such month, on a cumulative basis from the first day of the month in which the Closing Date   occurs, permit the aggregate amount of the actual operating cash receipts for the period   starting from the first day of the month in which the Closing Date occurs through the end of   the Current Cash Receipts Month to be less than 80% of the aggregate budgeted amount of the     

 

73   110446369 v18      operating cash receipts set forth in the line item “Operating Cash Receipts” on the Approved   Budget for such period; provided, for the avoidance of doubt and without limitation, (i) tax   refunds and (ii) insurance proceeds from Casualty Events shall not constitute operating cash   receipts; provided, further that any insurance proceeds from Casualty Events relating to the   Intego assets due to the fire on May 26, 2015 at the Debtors’ Mesa Facility shall constitute   operating cash receipts to the extent not exceeding the value of such assets in the Hilco   Appraisal; and   (b) As of the last day of each month ending on or after the Closing Date (in   each case, the “Current Cash Disbursements Month”), as set forth in the Variance Report for   such month, on cumulative basis from the first day of the month in which the Closing Date   occurs, permit the aggregate amount of the actual cash disbursements (excluding (w) cash   disbursements to remediate or repair any ASF Furnaces damaged by the May 26, 2015 fire at   the Debtors’ Mesa Facility to the extent reimbursed by insurance proceeds, (x) the Apple   Repayment Amount or the Apple Reduced Repayment Amount, as applicable, (y) costs   related directly to the shipping and installation of sold ASF Furnaces (including such costs   payable to a Person that is not a Loan Party pursuant to arm’s length transactions in the   ordinary course of business consistent with past practices) and (z) cash amounts applied to   cash collateralize the L/C Facility to the extent funded with customer deposits) for the period   starting from the first day of the month in which the Closing Date occurs through the end of   the Current Cash Disbursements Month to be more than 115% of the aggregate budgeted   amount of the cash disbursements set forth in the line item “Adjusted Cash Disbursements” on   the Approved Budget for such period, provided that the Debtors shall not have incurred an   average cost greater than $26,000 per sold ASF Furnace related to this shipping and   installation of such ASF Furnaces.  For the avoidance of doubt, costs related to the shipping   and installation of sold ASF Furnaces shall exclude Mesa wind-down and crating costs.    7.11 Minimum Cash.  Permit, at any time:   (a) The unrestricted cash and Cash Equivalents of the Borrower and its   Subsidiaries (excluding, without duplication, (i) any cash collateral supporting the L/C   Facility and restricted cash supporting other letters of credit, (ii) any cash and Cash   Equivalents held by any Chinese Subsidiaries, (iii) any cash and Cash Equivalents held by any   direct or indirect Subsidiary of the Borrower that is organized in Hong Kong not subject to a   valid and perfected security interest securing the intercompany notes owed to GTAT   Corporation as contemplated by the Intercompany Agreement, and (iv) any cash and Cash   Equivalents in excess of $500,000 that are not held in a deposit account or a securities account   subject to a Deposit Account Control Agreement or a Securities Account Control Agreement,   as applicable), to be less than $40,000,000; or   (b) The unrestricted cash and Cash Equivalents (other than any cash   collateral supporting the L/C Facility) of the Borrower or any of the other Loan Parties   organized in the United States that are held in a deposit account or a securities account subject   to a Deposit Account Control Agreement or a Securities Account Control Agreement, as   applicable to be less than $17,500,000      

 

74   110446369 v18      7.12 Amendments of Organization Documents.  Amend, terminate or waive (or permit   any amendment, termination or waiver of) (i) Organization Documents of any Loan Party or any   Subsidiary of any Loan Party, or (ii) any Material Contracts or any Indebtedness in excess of the   Threshold Amount of any Loan Party or any Subsidiary of any Loan Party if such amendment,   termination or waiver would reasonably be expected to be materially adverse to, in each case, the   Loan Parties, the Administrative Agent or the Lenders.   7.13 Chapter 11 Cases.     (a) Except for the Carve-Out and the L/C Facility, incur, create, assume,   suffer to exist or permit any other Superpriority Claim which is pari passu with or senior to   the claims of the Administrative Agent, the Collateral Agent and Lenders against the Loan   Parties or the adequate protection Liens or claims;   (b) Without limiting subsection (c) below, make or permit to be made any   change to the Final DIP Order without the consent of the Required Lenders; or   (c) Except for the Carve-Out and the L/C Facility, file an application for   the approval of any Superpriority Claim or any Lien in any of the Chapter 11 Cases that is   pari passu with or senior to the Liens securing the Obligations.   7.14 Prepayments, Etc. of Indebtedness.    (a) Prepay, redeem, purchase, defease or otherwise satisfy prior to the   scheduled maturity thereof in any manner, or make any payment in violation of any   subordination terms of, any Indebtedness that is contractually subordinated to the Obligations   or any Indebtedness (other than pursuant to the terms of the Intercompany Subordination   Agreement);    (b) Make (i) any prepetition “critical vendor” payments or other payments   on account of any creditor’s prepetition claim or (ii) payments on account of claims or   expenses arising under Section 503(b)(9) of the Bankruptcy Code, except in each case in   amounts and on terms and conditions reasonably satisfactory to the Required Lenders and   authorized by order of the Bankruptcy Court entered on or prior to the Closing Date; or   (c) Make any payment under any management incentive plan or on account   of claims or expenses arising under Section 503(c) of the Bankruptcy Code, except in each   case in amounts and on terms and conditions reasonably satisfactory to the Required Lenders.     7.15 Sale Leasebacks.  Engage in any sale leaseback or other Synthetic Lease   Obligations involving any of the assets of the Borrower or its Subsidiaries.   7.16 Anti-Terrorism Laws.     (a) Conduct any business or engage in any transaction or dealing with any   Blocked Person (other than any Person referenced in clause (d) of the definition of “Blocked   Person”) or knowingly conduct any business or engage in any transaction or dealing with any   Blocked Person referenced in clause (d) of the definition of “Blocked Person”, including the     

 

75   110446369 v18      making or receiving any contribution of funds, goods or services to or for the benefit of any   Blocked Person,   (b) Deal in or otherwise engage in any transaction relating to, any property   or interests in property blocked pursuant to the OFAC Sanctions Program, or   (c) 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 the OFAC Sanctions Program, the Patriot Act or any other Anti-   Terrorism Law.   7.17 Apple Settlement Agreement; ASF Furnace Sales; Maximum Cash.    (a) Sell or permit the sale of ASF Furnaces (other than sales of no more   than 56 obsolete ASF Furnaces from the Borrower’s facility in Salem, Massachusetts) for an   average price of less than 85.0% of the average sale price set forth in the Approved Budget   and reflected in the “Amended Projections” disclosed in the Borrower’s Form 8-K, dated   March 3, 2015; provided that, with respect to the calculation of the sale price of ASF Furnaces,   such price shall be reduced by the net value of the additional tangible consideration provided   (or increased by the net value of the additional tangible consideration received) by the   Borrower or any of its Subsidiaries relating to the sale of such ASF Furnaces.  For purposes of   this Section 7.17(a), “net value of the additional tangible consideration” means an amount   equal to the fair market value of any asset minus the sale price of such asset (for the avoidance   of doubt, no adjustments will be required pursuant to this proviso relating to the First   Amendment, the Seed Agreement, or the Prepetition ASF Purchase Order (each as defined in   that certain DEBTORS’ MOTION FOR ORDER, PURSUANT TO BANKRUPTCY CODE   SECTIONS 105, 362, 363, AND 553 AND BANKRUPTCY RULE 6004: (A) MODIFYING   AUTOMATIC STAY, ALLOWING SETOFF OF PREPETITION OBLIGATIONS, AND   APPROVING RELATED AGREEMENT WITH CUSTOMER; AND (B) AUTHORIZING   CERTAIN DEBTORS TO ENTER INTO INTERCOMPANY AGREEMENT RELATED TO   SALE OF ASF FURNACES, DATED AS OF MARCH 30, 2015);    (b) Permit, as of the Closing Date, on a cumulative basis from the first day   of the month in which the Closing Date occurs, the cumulative gross proceeds from the   aggregate amount of Dispositions of assets at the Borrower’s Mesa Facility (excluding ASF   Furnaces and Reclamation Dispositions) to be less than 50% of the appraised value in the   Hilco Appraisal;    (c) Permit any amendment or other modification to the Apple Settlement   Agreement in any manner adverse to the interests of the Lenders; provided that, for the   avoidance of doubt, any amendment or modification to the Apple Settlement Agreement that   further limits or restricts the terms or amount of any Priming Financing (as defined in the   Apple Settlement Agreement) shall be adverse to the Lenders;   (d) Permit any amendment or other modification to the Intercompany   Agreement in any manner adverse to the interests of the Lenders or permit GTAT Corporation   to assign or transfer the Intercompany Notes;     

 

76   110446369 v18      (e) Permit Borrower or any of its Subsidiaries (other than any Chinese   Subsidiary or any Subsidiary organized in Hong Kong) to have more than (x) $2,670,000 of   restricted cash, other than cash collateral for the L/C Facility, and (y) $500,000 in the   aggregate of other cash and Cash Equivalents on hand during any consecutive three (3)   Business Day period, in each case, deposited in deposits accounts or securities accounts which   are not subject to a Deposit Account Control Agreement or Securities Account Control   Agreement in favor of the Administrative Agent; provided that the amount in clause (x) above   shall be reduced to the extent any cash collateral securing letters of credit on the Closing Date   (other than the letters of credit under the L/C Facility) is released in connection with a   replacement letter of credit under the L/C Facility or otherwise expires;    (f) Permit any direct or indirect Subsidiary of Borrower organized in the   People’s Republic of China (such subsidiaries, the “Chinese Subsidiaries”; it being   understood that the “Chinese Subsidiaries” shall not include any Subsidiary organized in   Hong Kong or Taiwan) to have more than $3,000,000 of aggregate cash or Cash Equivalents   on hand at any time; provided that the Chinese Subsidiaries may have more than $3,000,000   of aggregate cash and Cash Equivalents to the extent that (i) the Chinese Subsidiaries and the   Loan Parties use commercially reasonable efforts to reduce such amount to less than   $3,000,000 (subject to compliance with applicable Law) and (ii) such amount in excess of   $3,000,000 was obtained by the Chinese Subsidiaries in the ordinary course of business; or   (g) Permit any amendment or other modification to the L/C Facility in any   manner adverse to the interests of the Lenders; or   (h) Apply any insurance proceeds relating to the May 26, 2015 fire at the   Debtors’ Mesa Facility received in connection with any loss, damage or repair to any ASF   Furnace that has not suffered a total loss to pay the Apple Repayment Amount.    ARTICLE VIII   EVENTS OF DEFAULT AND REMEDIES   8.01 Events of Default.  Any of the following shall constitute an Event of Default:   (a) Non-Payment.  The Borrower or any other Loan Party fails to (i) pay   when and as required to be paid herein, any amount of principal of any Loan, or (ii) pay   within three Business Days after the same becomes due, any interest on any Loan, or any fee   due hereunder, or (iii) pay within three Business Days after the same becomes due, any other   amount payable hereunder or under any other Loan Document; or   (b) Specific Covenants.  The Borrower fails to perform or observe any   term, covenant or agreement contained in any of (i) Sections 6.03(a), 6.05(a), 6.11, 6.15, 6.17   or Article VII, (ii) Sections 6.01(c)(ii), 6.01(d), or 6.01(f)(i)(x) or 6.01(f)(ii) and, in the case of   this clause (ii), such failure continues for three Business Days and (iii) Sections 6.01(f)(i)(y)   or 6.07(c) and, in the case of this clause (iii), such failure continues for five (5) Business   Days; or     

 

77   110446369 v18      (c) Other Defaults.  Any Loan Party fails to perform or observe any other   covenant or agreement (not specified in Section 8.01(a) or (b) above) contained in any Loan   Document on its part to be performed or observed and such failure continues for 15 days; or   (d) Representations and Warranties.  Any representation, warranty,   certification or statement of fact made or deemed made by or on behalf of Borrower or any of   its Subsidiaries in any other Loan Document, or in any document delivered in connection   herewith or therewith shall be incorrect or misleading in any material respect when made or   deemed made (except that such materiality qualifier shall not be applicable to any   representations or warranties that are already qualified or modified as to “materiality” or   “Material Adverse Effect” in the text thereof, which representations and warranties shall be   true and correct in all respects subject to such qualifications) as of the date made or deemed   made; or   (e) Cross-Default.  (i) A default shall occur in the payment when due   (subject to any applicable grace period) which is not stayed by the filing of the Chapter 11   Cases, whether by acceleration or otherwise, of any Indebtedness (other than Loans or   Indebtedness incurred pursuant to the terms of the Intercompany Agreement) of the Borrower   or any of its Subsidiaries in an aggregate principal amount exceed the Threshold Amount, or   (ii) a default shall occur in the performance or observance of any obligation or condition with   respect to such Indebtedness (other than Indebtedness incurred pursuant to the terms of the   Intercompany Agreement) in excess of the Threshold Amount if the effect of such default is to   accelerate the maturity of such Indebtedness which is not stayed by the filing of the Chapter   11 Cases, or (iii) a default shall occur in the performance or observance of any obligation or   condition with respect to the Apple Settlement Agreement, or (iv) a default in the performance   or observance of any obligation or condition and the exercise of material remedies shall occur   under the Amended and Restated Facility Lease Agreement, effective as of December 14,   2015, by and between Platypus Development LLC and GTAT Corporation; or   (f) Insolvency Proceedings, Etc.  Any non-Debtor Loan Party or   Subsidiary institutes or consents to the institution of any proceeding under any Debtor Relief   Law, or makes an assignment for the benefit of creditors; or applies for or consents to the   appointment of any receiver, trustee, custodian, conservator, liquidator, rehabilitator or similar   officer for it or for all or any material part of its property; or any receiver, trustee, custodian,   conservator, liquidator, rehabilitator or similar officer is appointed without the application or   consent of such Person and the appointment continues undischarged or unstayed for 30   calendar days; or any proceeding under any Debtor Relief Law relating to any such Person or   to all or any material part of its property is instituted without the consent of such Person and   continues undismissed or unstayed for 30 calendar days, or an order for relief is entered in any   such proceeding; or   (g) Luxembourg Insolvency Event. The occurrence of a Luxembourg   Insolvency Event in respect of a Luxembourg Guarantor, unless the obligations of such   Luxembourg Guarantor under the Final DIP Order are approved by the applicable court with   authority over such Luxembourg Insolvency Event within 30 calendar days; or     

 

78   110446369 v18      (h) Judgments.  There is entered against any Loan Party or any Subsidiary   thereof (i) one or more final judgments or orders for the payment of money in an aggregate   amount (as to all such judgments and orders) exceeding the Threshold Amount (to the extent   not covered by independent third party insurance as to which the insurer is rated at least “A”   by A.M. Best Company (or in the case of an insurer in the People’s Republic of China, is a   nationally recognized insurer) has been notified of the potential claim and does not deny   coverage), or (ii) any one or more non-monetary final judgments that have, or could   reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect   and, in either case, (A) enforcement proceedings are commenced by any creditor upon such   judgment or order, or (B) there is a period of 30 consecutive days during which a stay of   enforcement of such judgment, by reason of a pending appeal or otherwise, is not in effect; or   (i) ERISA.  (i) An ERISA Event occurs with respect to a Pension Plan or   Multiemployer Plan which has resulted or could reasonably be expected to result in liability of   any Loan Party under Title IV of ERISA to the Pension Plan, Multiemployer Plan or the   PBGC in an aggregate amount in excess of the Threshold Amount, or (ii) the Borrower or any   ERISA Affiliate fails to pay when due, after the expiration of any applicable grace period, any   installment payment with respect to its withdrawal liability under Section 4201 of ERISA   under a Multiemployer Plan in an aggregate amount in excess of the Threshold Amount; or   (j) Invalidity of Loan Documents.  Any material provision of any Loan   Document, at any time after its execution and delivery and for any reason other than as   expressly permitted hereunder or thereunder or satisfaction in full of all the Obligations,   ceases to be in full force and effect; or any Loan Party contests in writing the validity or   enforceability of any provision of any Loan Document; or any Loan Party denies in writing   that it has any or further liability or obligation under any provision of any Loan Document, or   purports in writing to revoke, terminate (except as provided herein) or rescind any provision   of any Loan Document; or   (k) Change of Control.  There occurs any Change of Control; or   (l) Sale of All or Substantially All Assets.  There occurs a sale of all or   substantially all assets of the Borrower and its Subsidiaries; or   (m) Collateral Documents.  Any Collateral Document after delivery thereof   shall for any reason (other than pursuant to the terms thereof) cease to create a valid and   perfected first priority Lien (subject to Permitted Liens) on the Collateral purported to be   covered thereby, except to the extent that any such loss of perfection or priority results from   the failure of the Administrative Agent to maintain possession of certificates actually   delivered to it representing securities pledged under the Collateral Documents; or   (n) Chapter 11 Cases.    (i) any of the Chapter 11 Cases concerning the Debtors shall cease to be in   effect or be dismissed or converted to a case under chapter 7 of the Bankruptcy Code or   any Loan Party shall file a motion or other pleading or support a motion or other pleading   (other than a motion in support of an Acceptable Plan) filed by any other Person seeking     

 

79   110446369 v18      the dismissal or conversion of any of the Chapter 11 Cases concerning the Loan Parties   under section 1112 of the Bankruptcy Code or otherwise; or any Debtor shall file a   motion or other pleading or shall consent to a motion or other pleading filed by any other   Person seeking the foregoing; or   (ii) a trustee under chapter 7 or chapter 11 of the Bankruptcy Code, a   Responsible Officer or an examiner with enlarged powers relating to the operation of the   business (powers beyond those set forth in section 1106(a)(3) and (4) of the Bankruptcy   Code) under section 1106(b) of the Bankruptcy Code shall be appointed in any of the   Chapter 11 Cases; or any Loan Party shall file a motion or other pleading or shall consent   to a motion or other pleading filed by any other Person seeking the foregoing; or   (iii) the existence of any other Superpriority Claim (other than the Carve-Out)   in any of the Chapter 11 Cases, which is pari passu with or senior to the claims of the   Administrative Agent and the Secured Parties against any Loan Party hereunder, or there   shall arise or be granted any such pari passu or senior Superpriority Claim (other than the   Carve-Out); or   (iv) the Bankruptcy Court shall enter an order or orders granting relief from   the automatic stay applicable under section 362 of the Bankruptcy Code to the holder or   holders of any security interest to proceed against, including foreclosure (or the granting   of a deed in lieu of foreclosure or the like) on, any assets of any of the Borrower or its   Subsidiaries that have a value in excess of $250,000 in the aggregate; or   (v) an order of the Bankruptcy Court (or any other court of competent   jurisdiction) shall be entered reversing, staying, vacating or modifying the Final DIP   Order, or any Debtor shall file a motion or other pleading or shall consent to a motion or   other pleading filed by any other Person seeking the foregoing; or    (vi) following the entry of the Final DIP Order, an order of the Bankruptcy   Court (or any other court of competent jurisdiction) shall be entered against any Lender   regarding the Loans that has a Material Adverse Effect on such Lender’s rights and   remedies; or any Debtor shall file a motion or other pleading or shall consent to a motion   or other pleading filed by any other Person seeking the foregoing; or   (vii) Debtor’s use or support of any portion of the Loans or Collateral to   challenge the validity, perfection, priority, extent or enforceability of the Loans or the   Liens on the assets of the Debtors securing the Loans; or   (viii) Debtor’s use or support of any portion of the Loans or Collateral to   challenge the validity, priority, extent or enforceability of the prepetition obligations   under the Convertible Notes; or   (ix) Any Debtor shall support any investigation or assertion of any claims   against any Lender or any Agent; or   (x) Filing of any motion or proceeding which could have material impairment   of the Lenders’ rights under the Loan Documents; or     

 

80   110446369 v18      (xi) Payment of or granting adequate protection with respect to prepetition   claims or rights other than (x) any equitable claim or other similar claim Tera Xtal   Technology Corp. may have against up to 34 ASF Furnaces located in Mesa, Arizona,   pursuant to the terms of the December 15, 2014 order of the Bankruptcy Court approving   the terms of the Apple Settlement, solely upon the entry of a court order providing that   such party has a lien or security interest in such assets, or (y) as approved by the Final   DIP Order; or any Debtor shall file a motion or other pleading or shall consent to a   motion or other pleading filed by any other Person seeking the foregoing; or   (o) Mesa Fire Insurance Proceeds.  The Borrower fails to receive cash   insurance proceeds sufficient to remediate the loss, damage or repair necessary for the ASF   Furnaces as a result of the May 26, 2015 fire at the Debtor’s Mesa Facility.    8.02 Remedies upon Event of Default.  Except as otherwise provided in the Final DIP   Order, if any Event of Default occurs and is continuing, the Administrative Agent shall (subject   to the terms of Article IX hereof), at the direction of, or may (but shall not be obligated to), with   the consent of, the Required Lenders, take any or all of the following actions (without further   order of, or application or motion to, the Bankruptcy Court (except as otherwise expressly   provided in the Final DIP Order) or any other court, and without interference from any Loan   Party or any other party in interest, at the same or different times):   (a) declare the unpaid principal amount of all outstanding Loans, all   interest accrued and unpaid thereon, and all other amounts owing or payable hereunder or   under any other Loan Document to be immediately due and payable, without presentment,   demand, protest or other notice of any kind, all of which are hereby expressly waived by the   Borrower; and   (b) set-off any amounts held as cash collateral (including in any deposit   accounts or securities accounts subject to a Deposit Account Control Agreement or a   Securities Account Control Agreement) and enforce any and all Liens and security interests   created pursuant to the Loan Documents and all remedies under applicable law (including, but   not limited to, the Bankruptcy Code and the UCC), subject only to satisfaction of any notice   requirement set forth in the Final DIP Order.   8.03 Application of Funds.  After the exercise of remedies provided for in Section 8.02   (or after the Loans have automatically become immediately due and payable), any amounts   received on account of the Obligations shall (subject to the provisions of Sections 2.05(b)(ii)) be   applied by the Administrative Agent in the following order:   First, to payment of that portion of the Obligations constituting fees, indemnities,   expenses and other amounts (including fees, charges and disbursements of counsel to the   Administrative Agent and amounts payable under Article III) payable to the Administrative   Agent in its capacity as such;   Second, to payment of that portion of the Obligations constituting fees, indemnities and   other amounts (other than principal and interest) payable to the Lenders (including fees, charges     

 

81   110446369 v18      and disbursements of counsel to the Lenders) arising under the Loan Documents and amounts   payable under Article III;   Third, to payment of that portion of the Obligations constituting accrued and unpaid   interests on the Loans and other Obligations arising under the Loan Documents, ratably among   the Lenders in proportion to the respective amounts described in this clause Third payable to   them;   Fourth, to the payment of that portion of the Obligations constituting unpaid principal of   the Loans, ratably among the Lenders in proportion to the respective amounts described in this   clause Fourth held by them;   Last, the balance, if any, after all of the Obligations have been indefeasibly paid in full, to   the Borrower or as otherwise required by Law.   ARTICLE IX   ADMINISTRATIVE AGENT AND COLLATERAL AGENT   9.01 Appointment and Authority.     (a) Each of the Lenders hereby irrevocably appoints Cantor Fitzgerald   Securities to act on its behalf as the Administrative Agent hereunder and under the other Loan   Documents and authorizes the Administrative Agent to execute the Loan Documents and to   take such actions on its behalf and to exercise such powers as are delegated to the   Administrative Agent by the terms hereof or thereof, together with such actions and powers as   are reasonably incidental thereto.  Except with respect to Sections 9.06 and 9.10, the   provisions of this Article IX are solely for the benefit of the Administrative Agent and the   Lenders, and (except with respect to Sections 9.05, 9.06 and 9.10) the Borrower shall not have   rights as third party beneficiaries of any of such provisions.  It is understood and agreed that   the use of the term “agent” herein or in any other Loan Documents (or any other similar term)   with reference to the Administrative Agent is not intended to connote any fiduciary or other   implied (or express) obligations arising under agency doctrine of any applicable Law, instead   such term is used as a matter of market custom, and is intended to create or reflect only an   administrative relationship between contracting parties.   (b) Each of the Lenders hereby irrevocably appoints Cantor Fitzgerald   Securities to act on its behalf as the Collateral Agent hereunder and under the other Loan   Documents and authorizes the Collateral Agent to execute the Loan Documents and to take   such actions on its behalf and to exercise such powers as are delegated to the Collateral Agent   by the terms hereof or thereof, together with such actions and powers as are reasonably   incidental thereto.  Except with respect to Sections 9.06 and 9.10, the provisions of this   Article IX are solely for the benefit of the Collateral Agent and the Lenders, and (except with   respect to Sections 9.05, 9.06 and 9.10) the Borrower shall not have rights as third party   beneficiaries of any of such provisions.  It is understood and agreed that the use of the term   “agent” herein or in any other Loan Documents (or any other similar term) with reference to   the Collateral Agent is not intended to connote any fiduciary or other implied (or express)   obligations arising under agency doctrine of any applicable Law, instead such term is used as     

 

82   110446369 v18      a matter of market custom, and is intended to create or reflect only an administrative   relationship between contracting parties.   9.02 Rights as a Lender.  The Person serving as the Agent hereunder shall have the   same rights and powers in its capacity as a Lender, if any, as any other Lender and may exercise   the same as though it were not the Agent and the term “Lender” or “Lenders” shall, unless   otherwise expressly indicated or unless the context otherwise requires, include the Person   serving as the Agent hereunder in its individual capacity.  Such Person and its Affiliates may   accept deposits from, lend money to, own securities of, act as the financial advisor or in any   other advisory capacity for and generally engage in any kind of business with the Borrower or   any Subsidiary or other Affiliate thereof as if such Person were not the Agent hereunder and   without any duty to account therefor to the Lenders.   9.03 Exculpatory Provisions.  The Agent shall not have any duties or obligations   except those expressly set forth herein and in the other Loan Documents, and its duties hereunder   shall be administrative in nature.   (a) Without limiting the generality of the foregoing, the Agent:   (i) shall not be subject to any fiduciary or other implied duties, regardless of   whether a Default has occurred and is continuing;   (ii) shall not have any duty to take any discretionary action or exercise any   discretionary powers, except discretionary rights and powers expressly contemplated   hereby or by the other Loan Documents that the Agent is required to exercise as directed   in writing by the Required Lenders (or such other number or percentage of the Lenders as   shall be expressly provided for herein or in the other Loan Documents) accompanied by   indemnity satisfactory to the Agent, provided that the Agent shall not be required to take   any action that, in its opinion or the opinion of its counsel, may expose the Agent to   liability or that is contrary to any Loan Document or applicable law; and   (iii) shall not, except as expressly set forth herein and in the other Loan   Documents, have any duty to disclose, and shall not be liable for the failure to disclose,   any information relating to Borrower or any of its Affiliates that is communicated to or   obtained by the Person serving as the Agent or any of its Affiliates in any capacity.   (b) The Agent shall not be liable for any action taken or not taken by it   (i) with the consent or at the request of the Required Lenders (or such other number or   percentage of the Lenders as shall be necessary, or as the Agent shall believe in good faith   shall be necessary, under the circumstances as provided in Sections 11.01 and 8.02) or (ii) in   the absence of its own gross negligence or willful misconduct as determined by a court of   competent jurisdiction by final and nonappealable judgment.  The Agent shall be deemed not   to have knowledge of any Default unless and until notice describing such Default is given to   the Agent by any Loan Party or a Lender.   (c) The Agent shall not be responsible for or have any duty to ascertain or   inquire into (i) any statement, warranty or representation made in or in connection with this   Agreement or any other Loan Document, (ii) the contents of any certificate, report or other     

 

83   110446369 v18      document delivered hereunder or thereunder or in connection herewith or therewith, (iii) the   performance or observance of any of the covenants, agreements or other terms or conditions   set forth herein or therein or the occurrence of any Default, (iv) the validity, enforceability,   effectiveness or genuineness of this Agreement, any other Loan Document or any other   agreement, instrument or document, or the creation, perfection or priority of any Lien   purported to be created by the Collateral Documents, (v) the value or the sufficiency of any   Collateral, or (vi) the satisfaction of any condition set forth in Article IV or elsewhere herein,   other than to confirm receipt of items expressly required to be delivered to the Agent.   9.04 Reliance by Agent.  The Agent shall be entitled to rely upon, and shall not incur   any liability for relying upon, any notice, request, certificate, consent, statement, instrument,   document or other writing (including any electronic message, internet or intranet website posting   or other distribution) believed by it to be genuine and to have been signed, sent or otherwise   authenticated by the proper Person.  The Agent also may rely upon any statement made to it   orally or by telephone and believed by it to have been made by the proper Person, and shall not   incur any liability for relying thereon.  In determining compliance with any condition hereunder   to the making of a Loan that by its terms must be fulfilled to the satisfaction of a Lender, the   Agent may presume that such condition is satisfactory to such Lender unless the Agent shall   have received notice to the contrary from such Lender prior to the making of such Loan.  The   Agent may consult with legal counsel (who may be counsel for the Borrower), independent   accountants and other experts selected by it, and shall not be liable for any action taken or not   taken by it in accordance with the advice of any such counsel, accountants or experts.  Agent   may treat each Lender party hereto as the holder of Obligations until the Administrative Agent   receives an executed Assignment and Assumption Agreement from such Lender.  Agent makes   no warranties or representations to any Lender and shall not be responsible to any Lender for any   recitals, statements, warranties or representations made in or in connection with this Agreement   or any other Loan Documents.   9.05 Delegation of Duties.  The Agent may perform any and all of its duties and   exercise its rights and powers hereunder or under any other Loan Document by or through any   one or more sub-agents appointed by the Agent; provided, however, that with respect to the   Obligations, such sub-agent is a “U.S. person” and a “financial institution” (both within the   meaning of Treasury Regulations Section 1.1441-1).  The Agent and any such sub-agent may   perform any and all of its duties and exercise its rights and powers by or through their respective   Related Parties, subject to the provision in the prior sentence, applied mutatis mutandis to such   Related Party.  The exculpatory provisions of this Article shall apply to any such sub-agent and   to the Related Parties of the Agent and any such sub-agent, and shall apply to their respective   activities in connection with the syndication of the credit facilities provided for herein as well as   activities as Agent.  The Agent shall not be responsible for the negligence or misconduct of any   sub-agents except to the extent that a court of competent jurisdiction determines in a final and   non appealable judgment that the Agent acted with gross negligence or willful misconduct in the   selection of such sub-agents.   9.06 Resignation of Agent.     (a) The Agent may resign upon 30 days’ advance written notice to the   Lenders and the Borrower.  Upon receipt of any such notice of resignation, the Required     

 

84   110446369 v18      Lenders shall have the right, in consultation with the Borrower, to appoint a successor, which   shall be a bank with an office in the United States or an Affiliate of any such bank with an   office in the United States.  If no such successor shall have been so appointed by the Required   Lenders and shall have accepted such appointment within 30 days after the retiring Agent   gives notice of its resignation (or such earlier day as shall be agreed by the Required Lenders)   (the “Resignation Effective Date”), then the retiring Agent may (but shall not be obligated to)   on behalf of the Lenders, appoint a successor Agent meeting the qualifications set forth above.    Whether or not a successor has been appointed, such resignation shall become effective in   accordance with such notice on the Resignation Effective Date.   (b) With effect from the Resignation Effective Date (i) the retiring Agent   shall be discharged from its duties and obligations hereunder and under the other Loan   Documents (except that in the case of any collateral security held by the Agent on behalf of   the Lenders under any of the Loan Documents, the retiring Agent shall continue to hold such   collateral security until such time as a successor Agent is appointed) and (ii) except for any   indemnity payments or other amounts then owed to the retiring Agent, all payments,   communications and determinations provided to be made by, to or through the Agent shall   instead be made by or to each Lender directly, until such time, if any, as the Required Lenders   appoint a successor Agent as provided for above.  Upon the acceptance of a successor’s   appointment as Agent hereunder, such successor shall succeed to and become vested with all   of the rights, powers, privileges and duties of the retiring Agent (other than as provided in   Section 3.01(g) and other than any rights to indemnity payments or other amounts owed to the   retiring Agent as of the Resignation Effective Date), and the retiring Agent shall be   discharged from all of its duties and obligations hereunder or under the other Loan Documents   (if not already discharged therefrom as provided above in this Section 9.06(b)).  The fees   payable by the Borrower to a successor Agent shall be the same as those payable to its   predecessor unless otherwise agreed between the Borrower and such successor.  After the   retiring Agent’s resignation hereunder and under the other Loan Documents, the provisions of   this Article and Section 11.04 shall continue in effect for the benefit of such retiring Agent, its   sub-agents and their respective Related Parties in respect of any actions taken or omitted to be   taken by any of them while the retiring Agent was acting as Agent.   9.07 Non-Reliance on Agent and Other Lenders.  Each Lender acknowledges that it   has, independently and without reliance upon the Agent or any other Lender or any of their   Related Parties and based on such documents and information as it has deemed appropriate,   made its own credit analysis and decision to enter into this Agreement.  Each Lender also   acknowledges that it will, independently and without reliance upon the Agent or any other   Lender or any of their Related Parties and based on such documents and information as it shall   from time to time deem appropriate, continue to make its own decisions in taking or not taking   action under or based upon this Agreement, any other Loan Document or any related agreement   or any document furnished hereunder or thereunder.   9.08 Collateral and Guaranty Matters.  Each of the Lenders irrevocably authorize the   Agent, at its option and in its discretion,   (a) to enter into this Agreement and the Collateral Documents for the   benefit of the Secured Parties;      

 

85   110446369 v18      (b) to take any action with respect to any Collateral or the Loan Documents   which may be necessary (as reasonably determined by the Required Lenders) or as the   Administrative Agent may reasonably require to perfect and maintain perfected Agent’s Liens   upon the Collateral, for its benefit and the ratable benefit of Lenders;   (c) to release any Lien on any property granted to or held by the Agent   under any Loan Document (i) upon payment in full of all Obligations (other than contingent   indemnification obligations for which no claim has been made), (ii) that is sold or to be sold   or transferred as part of or in connection with any sale permitted hereunder or under any other   Loan Document, (iii) that constitutes “Excluded Property” (as such term is defined in the   Security Agreement) or (iv) if approved, authorized or ratified in writing in accordance with   Section 11.01;   (d) to release any Guarantor from its obligations under the Guaranty if such   Person ceases to be a Subsidiary as a result of a transaction permitted hereunder; and   (e) to subordinate any Lien on any property granted to or held by the Agent   under any Loan Document to the holder of any Lien on such property that is permitted by   Section 7.01(i).   Upon request by the Agent at any time, the Required Lenders (or such other number or   percentage of the Lenders as shall be expressly provided for herein or in the other Loan   Documents) will confirm in writing the Agent’s authority to release or subordinate its interest in   particular types or items of property, or to release any Guarantor from its obligations under the   Guaranty pursuant to this Section 9.08.  In each case as specified in this Section 9.08, the Agent   will, at the Borrower’s expense, execute and deliver to the applicable Loan Party such documents   as such Loan Party may reasonably request to evidence the release of such item of Collateral   from the assignment and security interest granted under the Collateral Documents or to   subordinate its interest in such item, or to release such Guarantor from its obligations under the   Guaranty, in each case in accordance with the terms of the Loan Documents and this   Section 9.08.   Except for the safe custody of any Collateral in its possession and the accounting for   moneys actually received by it under any Collateral Document, Agent shall have no obligation   whatsoever to any Lender or to any other Person to assure that the Collateral exists or is owned   by the Borrower or is cared for, protected or insured or has been encumbered or that the Liens   granted to Agent herein or pursuant to the Collateral Documents have been properly or   sufficiently or lawfully created, perfected, protected or enforced or are entitled to any particular   priority, or to exercise at all or in any particular manner or under any duty of care, disclosure or   fidelity, or to continue exercising, any of its rights, authorities and powers granted or available to   Agent in this Section 9.08 or in any of the Loan Documents, it being understood and agreed that   in respect of the Collateral, or any act, omission or event related thereto, Agent may act in any   manner in may deem appropriate, in its sole discretion, but consistent with the provisions of this   Agreement and the other Collateral Documents and that Agent shall have no duty or liability   whatsoever to any Lender.   For the avoidance of doubt, Agent shall be deemed to have exercised   reasonable care in the custody and preservation of any Collateral in its possession if such   Collateral is accorded treatment substantially equal to that which it accords its own property.     

 

86   110446369 v18      ARTICLE X   CONTINUING GUARANTY   10.01 Guaranty.  Subject to the provisions of Section 10.2, Guarantors jointly and   severally hereby irrevocably and unconditionally guaranty for the ratable benefit of the   Administrative Agent and each Lender the due and punctual payment in full in Cash of all   Obligations when the same shall become due, whether at stated maturity, by required   prepayment, declaration, acceleration, demand or otherwise (including amounts that would   become due but for the operation of the automatic stay under Section 362(a) of the Bankruptcy   Code, 11 U.S.C. § 362(a)) (collectively, the “Guaranteed Obligations”).   10.02 Contribution by Guarantors.  All Guarantors desire to allocate among themselves,   in a fair and equitable manner, their obligations arising under this Guaranty.  Accordingly, in the   event any payment or distribution is made on any date by a Guarantor under this Guaranty such   that its Aggregate Payments (as defined below) exceeds its Fair Share (as defined below) as of   such date, such Guarantor shall be entitled to a contribution from each of the other Guarantors in   an amount sufficient to cause each Guarantor's Aggregate Payments to equal its Fair Share as of   such date.  “Fair Share” means, with respect to any Guarantor as of any date of determination, an   amount equal to (a) the ratio of (i) the Fair Share Contribution Amount (as defined below) with   respect to such Guarantor, to (ii) the aggregate of the Fair Share Contribution Amounts with   respect to all Guarantors multiplied by, (b) the aggregate amount paid or distributed on or before   such date by all Guarantors under this Guaranty in respect of the obligations Guaranteed.  “Fair   Share Contribution Amount” means, with respect to any Guarantor as of any date of   determination, the maximum aggregate amount of the obligations of such Guarantor under this   Guaranty that would not render its obligations hereunder subject to avoidance as a fraudulent   transfer or conveyance under Section 548 of Title 11 of the United States Code or any   comparable applicable provisions of state law; provided, solely for purposes of calculating the   “Fair Share Contribution Amount” with respect to any Guarantor for purposes of this Section   10.2, any assets or liabilities of such Guarantor arising by virtue of any rights to subrogation,   reimbursement or indemnification or any rights to or obligations of contribution hereunder shall   not be considered as assets or liabilities of such Guarantor.  “Aggregate Payments” means, with   respect to any Guarantor as of any date of determination, an amount equal to (A) the aggregate   amount of all payments and distributions made on or before such date by such Guarantor in   respect of this Guaranty (including, without limitation, in respect of this Section 10.2), minus (B)   the aggregate amount of all payments received on or before such date by such Guarantor from   the other Guarantors as contributions under this Section 10.2.  The amounts payable as   contributions hereunder shall be determined as of the date on which the related payment or   distribution is made by the applicable Guarantor.  The allocation among Guarantors of their   obligations as set forth in this Section 10.2 shall not be construed in any way to limit the liability   of any Guarantor hereunder.  Each Guarantor is a third party beneficiary to the contribution   agreement set forth in this Section 10.2.   10.03 Certain Waivers.  Subject to Section 10.2, Guarantors hereby jointly and severally   agree, in furtherance of the foregoing and not in limitation of any other right which any Secured   Party may have at law or in equity against any Guarantor by virtue hereof, that upon the failure   of the Borrower to pay any of the Guaranteed Obligations when and as the same shall become   due, whether at stated maturity, by required prepayment, declaration, acceleration, demand or     

 

87   110446369 v18      otherwise (including amounts that would become due but for the operation of the automatic stay   under Section 362(a) of the Bankruptcy Code, 11 U.S.C. § 362(a)), Guarantors will upon demand   pay, or cause to be paid, in Cash, to Administrative Agent for the ratable benefit of the Secured   Parties, an amount equal to the sum of the unpaid principal amount of all Guaranteed Obligations   then due as aforesaid, accrued and unpaid interest on such Guaranteed Obligations (including   interest which, but for the Borrower’s becoming the subject of a case under the Bankruptcy   Code, would have accrued on such Guaranteed Obligations, whether or not a claim is allowed   against the Borrower for such interest in the related bankruptcy case) and all other Guaranteed   Obligations then owed to the Secured Parties as aforesaid.   10.04 Liability of Guarantors Absolute.  Each Guarantor agrees that its obligations   hereunder are irrevocable, absolute, independent and unconditional and shall not be affected by   any circumstance which constitutes a legal or equitable discharge of a guarantor or surety other   than indefeasible payment in full in Cash of the Guaranteed Obligations.  In furtherance of the   foregoing and without limiting the generality thereof, each Guarantor agrees as follows:   (a) this Guaranty is a guaranty of payment when due and not of   collectability, and this Guaranty is a primary obligation of each Guarantor and not merely a   contract of surety;   (b) [reserved];   (c) the obligations of each Guarantor hereunder are independent of the   obligations of the Borrower and the obligations of any other guarantor (including any other   Guarantor) of the obligations of the Borrower, and a separate action or actions may be brought   and prosecuted against such Guarantor whether or not any action is brought against the Borrower   or any of such other guarantors and whether or not the Borrower is joined in any such action or   actions;   (d) payment by any Guarantor of a portion, but not all, of the   Guaranteed Obligations shall in no way limit, affect, modify or abridge any Guarantor's liability   for any portion of the Guaranteed Obligations which has not been paid.  Without limiting the   generality of the foregoing, if the Administrative Agent is awarded a judgment in any suit   brought to enforce any Guarantor's covenant to pay a portion of the Guaranteed Obligations, such   judgment shall not be deemed to release such Guarantor from its covenant to pay the portion of   the Guaranteed Obligations that is not the subject of such suit, and such judgment shall not,   except to the extent satisfied by such Guarantor, limit, affect, modify or abridge any other   Guarantor's liability hereunder in respect of the Guaranteed Obligations;   (e) any Secured Party, upon such terms as it deems appropriate,   without notice or demand and without affecting the validity or enforceability hereof or giving rise   to any reduction, limitation, impairment, discharge or termination of any Guarantor's liability   hereunder, from time to time may (i) renew, extend, accelerate, increase the rate of interest on, or   otherwise change the time, place, manner or terms of payment of the Guaranteed Obligations; (ii)   settle, compromise, release or discharge, or accept or refuse any offer of performance with   respect to, or substitutions for, the Guaranteed Obligations or any agreement relating thereto   and/or subordinate the payment of the same to the payment of any other obligations; (iii) request     

 

88   110446369 v18      and accept other guaranties of the Guaranteed Obligations and take and hold security for the   payment hereof or the Guaranteed Obligations; (iv) release, surrender, exchange, substitute,   compromise, settle, rescind, waive, alter, subordinate or modify, with or without consideration,   any security for payment of the Guaranteed Obligations, any other guaranties of the Guaranteed   Obligations, or any other obligation of any Person (including any other Guarantor) with respect   to the Guaranteed Obligations; (v) enforce and apply any security now or hereafter held by or for   the benefit of such Secured Party in respect hereof or the Guaranteed Obligations and direct the   order or manner of sale thereof, or exercise any other right or remedy that such Secured Party   may have against any such security, in each case as such Secured Party in its discretion may   determine consistent herewith and any applicable security agreement, including foreclosure on   any such security pursuant to one or more judicial or non-judicial sales, whether or not every   aspect of any such sale is commercially reasonable, and even though such action operates to   impair or extinguish any right of reimbursement or subrogation or other right or remedy of any   Guarantor against the Borrower or any security for the Guaranteed Obligations; and (vi) exercise   any other rights available to it under the Loan Documents; and   (f) this Guaranty and the obligations of Guarantors hereunder shall be   valid and enforceable and shall not be subject to any reduction, limitation, impairment, discharge   or termination for any reason (other than indefeasible payment in full in Cash of the Guaranteed   Obligations), including the occurrence of any of the following, whether or not any Guarantor   shall have had notice or knowledge of any of them:  (i) any failure or omission to assert or   enforce or agreement or election not to assert or enforce, or the stay or enjoining, by order of   court, by operation of law or otherwise, of the exercise or enforcement of, any claim or demand   or any right, power or remedy (whether arising under the Loan Documents, at law, in equity or   otherwise) with respect to the Guaranteed Obligations or any agreement relating thereto, or with   respect to any other guaranty of or security for the payment of the Guaranteed Obligations; (ii)   any rescission, waiver, amendment or modification of, or any consent to departure from, any of   the terms or provisions (including provisions relating to events of default) hereof, any of the   other Loan Documents or any agreement or instrument executed pursuant thereto, or of any other   guaranty or security for the Guaranteed Obligations, in each case whether or not in accordance   with the terms hereof or such Loan Document or any agreement relating to such other guaranty   or security; (iii) the Guaranteed Obligations, or any agreement relating thereto, at any time being   found to be illegal, invalid or unenforceable in any respect; (iv) the receipt by any Secured Party   of any property or consideration in respect of the Guaranteed Obligations other than Cash, or the   application of payments received from any source (other than payments in Cash received   pursuant to the other Loan Documents or from the proceeds of any security for the Guaranteed   Obligations, except to the extent such security also serves as collateral for indebtedness other   than the Guaranteed Obligations) to the payment of indebtedness other than the Guaranteed   Obligations, even though any Secured Party might have elected to apply such payment to any   part or all of the Guaranteed Obligations; (v) any Secured Party’s consent to the change,   reorganization or termination of the corporate structure or existence of the Borrower or any of its   Subsidiaries and to any corresponding restructuring of the Guaranteed Obligations; (vi) any   failure to perfect or continue perfection of a security interest in any collateral which secures any   of the Guaranteed Obligations; (vii) any defenses, set offs or counterclaims which the Borrower   may allege or assert against any Secured Party in respect of the Guaranteed Obligations,   including failure of consideration, breach of warranty, payment, statute of frauds, statute of   limitations, accord and satisfaction and usury; and (viii) any other act or thing or omission, or     

 

89   110446369 v18      delay to do any other act or thing, which may or might in any manner or to any extent vary the   risk of any Guarantor as an obligor in respect of the Guaranteed Obligations.   10.05 Waivers by Guarantors.  Each Guarantor hereby waives, for the benefit of the   Secured Parties:  (a) any right to require any Secured Party, as a condition of payment or   performance by such Guarantor, to (i) proceed against the Borrower, any other guarantor   (including any other Guarantor) of the Guaranteed Obligations or any other Person, (ii) proceed   against or exhaust any security held from the Borrower, any such other guarantor or any other   Person, (iii) proceed against or have resort to any balance of any deposit account or credit on the   books of any Secured Party in favor of the Borrower or any other Person, or (iv) pursue any   other remedy in the power of any Secured Party whatsoever, in each case other than indefeasible   payment in full of the Guaranteed Obligations; (b) any defense arising by reason of the   incapacity, lack of authority or any disability or other defense of the Borrower or any other   Guarantor including any defense based on or arising out of the lack of validity or the   unenforceability of the Guaranteed Obligations or any agreement or instrument relating thereto   or by reason of the cessation of the liability of the Borrower or any other Guarantor from any   cause other than indefeasible payment in full of the Guaranteed Obligations; (c) any defense   based upon any statute or rule of law which provides that the obligation of a surety must be   neither larger in amount nor in other respects more burdensome than that of the principal; (d) any   defense based upon any Secured Party's errors or omissions in the administration of the   Guaranteed Obligations, except behavior which amounts to bad faith; (e)(i) any principles or   provisions of law, statutory or otherwise, which are or might be in conflict with the terms hereof   and any legal or equitable discharge of such Guarantor's obligations hereunder, (ii) the benefit of   any statute of limitations affecting such Guarantor's liability hereunder or the enforcement   hereof, (iii) any rights to set offs, recoupments and counterclaims, and (iv) promptness, diligence   and any requirement that any Secured Party protect, secure, perfect or insure any security interest   or lien or any property subject thereto; (f) notices, demands, presentments, protests, notices of   protest, notices of dishonor and notices of any action or inaction, including acceptance hereof,   notices of default hereunder or any agreement or instrument related thereto, notices of any   renewal, extension or modification of the Guaranteed Obligations or any agreement related   thereto, notices of any extension of credit to the Borrower and notices of any of the matters   referred to in Section 10.04 and any right to consent to any thereof; and (g) any defenses or   benefits that may be derived from or afforded by law which limit the liability of or exonerate   guarantors or sureties, or which may conflict with the terms hereof.   10.06 Guarantor’s Rights of Subrogation, Contribution.  Until the Guaranteed   Obligations (other than contingent obligations for which no claim has been made) shall have   been indefeasibly paid in full in Cash, each Guarantor hereby waives any claim, right or remedy,   direct or indirect, that such Guarantor now has or may hereafter have against the Borrower or   any other Guarantor or any of its assets in connection with this Guaranty or the performance by   such Guarantor of its obligations hereunder, in each case whether such claim, right or remedy   arises in equity, under contract, by statute, under common law or otherwise and including   without limitation (a) any right of subrogation, reimbursement or indemnification that such   Guarantor now has or may hereafter have against the Borrower with respect to the Guaranteed   Obligations, (b) any right to enforce, or to participate in, any claim, right or remedy that any   Secured Party now has or may hereafter have against the Borrower, and (c) any benefit of, and   any right to participate in, any collateral or security now or hereafter held by any Secured Party.      

 

90   110446369 v18      In addition, until the Guaranteed Obligations (other than contingent obligations for which no   claim has been made) shall have been indefeasibly paid in full and the Commitments shall have   terminated, each Guarantor shall withhold exercise of any right of contribution such Guarantor   may have against any other guarantor (including any other Guarantor) of the Guaranteed   Obligations, including, without limitation, any such right of contribution as contemplated by   Section 10.2.  Each Guarantor further agrees that, to the extent the waiver or agreement to   withhold the exercise of its rights of subrogation, reimbursement, indemnification and   contribution as set forth herein is found by a court of competent jurisdiction to be void or   voidable for any reason, any rights of subrogation, reimbursement or indemnification such   Guarantor may have against the Borrower or against any collateral or security, and any rights of   contribution such Guarantor may have against any such other guarantor, shall be junior and   subordinate to any rights any Secured Party may have against the Borrower, to all right, title and   interest any Secured Party may have in any such collateral or security, and to any right any   Secured Party may have against such other guarantor.  If any amount shall be paid to any   Guarantor on account of any such subrogation, reimbursement, indemnification or contribution   rights at any time when all Guaranteed Obligations (other than contingent obligations for which   no claim has been made) shall not have been finally and indefeasibly paid in full, such amount   shall be held in trust for the Administrative Agent on behalf of Secured Parties and shall   forthwith be paid over to the Administrative Agent for the benefit of Secured Parties to be   credited and applied against the Guaranteed Obligations, whether matured or unmatured, in   accordance with the terms hereof.   10.07 Subordination of Other Obligations.  Any Indebtedness of the Borrower or any   Guarantor now or hereafter held by any Guarantor is hereby subordinated in right of payment to   the Guaranteed Obligations (it being understood that any payment in respect thereof shall be   permitted unless an Event of Default has occurred and is continuing), and any such indebtedness   collected or received by such Guarantor after an Event of Default has occurred and is continuing   shall be held in trust for the Administrative Agent on behalf of Secured Parties and shall   forthwith be paid over to the Administrative Agent for the benefit of Secured Parties to be   credited and applied against the Guaranteed Obligations but without affecting, impairing or   limiting in any manner the liability of such Guarantor under any other provision hereof.   10.08 Continuing Guaranty.  This Guaranty is a continuing guaranty and shall remain in   effect until all of the Guaranteed Obligations (other than contingent obligations for which no   claim has been made) shall have been indefeasibly paid in full.  Each Guarantor hereby   irrevocably waives any right to revoke this Guaranty as to future transactions giving rise to any   Guaranteed Obligations.   10.09 Authority of Guarantors or the Borrower.  It is not necessary for any Secured   Party to inquire into the capacity or powers of any Guarantor or the Borrower or the officers,   directors or any agents acting or purporting to act on behalf of any of them.   10.10 Financial Condition of the Borrower.  No Secured Party shall have any obligation   to disclose or discuss with any Guarantor its assessment, or any Guarantor's assessment, of the   financial condition of the Borrower.  Each Guarantor has adequate means to obtain information   from the Borrower on a continuing basis concerning the financial condition of the Borrower and   its ability to perform its obligations under the Loan Documents, and each Guarantor assumes the     

 

91   110446369 v18      responsibility for being and keeping informed of the financial condition of the Borrower and of   all circumstances bearing upon the risk of non-payment of the Guaranteed Obligations.  Each   Guarantor hereby waives and relinquishes any duty on the part of any Secured Party to disclose   any matter, fact or thing relating to the business, operations or conditions of the Borrower now   known or hereafter known by any Secured Party.   10.11 Luxembourg Guarantee Limitation Language   Notwithstanding any other provision of this Agreement, the maximum liability of the   Luxembourg Guarantor under this Article X (Continuing Guaranty) for the obligations of any   other Loan Party, which is not a direct or indirect Subsidiary of the Luxembourg Guarantor shall   be limited to at any time to an aggregate amount not exceeding 95% of the greater of    (i) an amount equal to the sum of the Luxembourg Guarantor's Net Assets and its   subordinated debt (dettes subordonnées), as reflected in the financial information   of the Luxembourg Guarantor available to the Administrative Agent as at the date   of this Agreement, including, without limitation, its most recently and duly   approved financial statements (comptes annuels) and any (unaudited) interim   financial statements signed by its board of managers (gérants) / directors   (administrateurs); and   (ii) an amount equal to the sum of the Luxembourg Guarantor's Net Assets and its   subordinated debt (dettes subordonnées), as reflected in the financial information   of the Luxembourg Guarantor available to the Administrative Agent as at the date   the guarantee is called, including, without limitation, its most recently and duly   approved financial statements (comptes annuels) and any (unaudited) interim   financial statements signed by its board of managers (gérants) / directors   (administrateurs).   For this purpose, "Net Assets" shall mean all the assets (actifs) of the Luxembourg Guarantor   minus its liabilities (provisions et dettes) as valued in accordance with Luxembourg generally   accepted accounting principles (Lux GAAP) or International Financial Reporting Standards   (IFRS), as applicable, and the relevant provisions of the Luxembourg Act of 19 December 2002   on the Register of Commerce and Companies, on accounting and on annual accounts of the   companies, as amended.   Should the financial information referred to in clause (i) and (ii) above not be available on the   date of this Agreement or on the date the guaranty is called, the Luxembourg Guarantor's Net   Assets will be determined by the Administrative Agent or any other person designated by the   Administrative Agent, acting reasonably, in accordance with the Luxembourg accounting   principles applicable to the Luxembourg Guarantor and at the cost of the Luxembourg Guarantor.   The limitation set forth at the first paragraph above shall not apply to any amounts borrowed   under this Agreement and made available, in any form whatsoever, to such Luxembourg   Guarantor or any of its direct or indirect Subsidiaries.     

 

92   110446369 v18         ARTICLE XI   MISCELLANEOUS   11.01 Amendments, Etc.  No amendment or waiver of any provision of this Agreement   or any other Loan Document, and no consent to any departure by the Borrower or any other Loan   Party therefrom, shall, except as otherwise provided below, be effective unless in writing signed   by the Required Lenders (or by the Administrative Agent with the consent of the Required   Lenders) and the applicable Loan Party or Loan Parties signatory thereto, as the case may be, and   acknowledged by the Administrative Agent, and each such waiver or consent shall be effective   only in the specific instance and for the specific purpose for which given; provided, however,   that no such amendment, waiver or consent shall:   (a) extend or increase the Commitment of any Lender (or reinstate any   Commitment terminated pursuant to Section 2.06) without the written consent of such Lender;   (b) postpone the scheduled maturity of any Loan or extend any time for   any payment (excluding mandatory prepayments) of any interest, fees or other amounts due to   the Lenders (or any of them) under this Agreement or under any other Loan Document   without the written consent of each Lender entitled to such payment, it being understood that   the waiver of any mandatory prepayment of the Loans shall not constitute a postponement of   any date scheduled for the payment of principal or interest;   (c) waive, reduce or forgive the principal of, or the rate of interest specified   herein on, any Loan or any fees or other amounts payable hereunder or under any other Loan   Document without the written consent of each Lender entitled to such amount, provided,   however, that only the consent of the Required Lenders shall be necessary to amend the   definition of “Default Rate” or to waive any obligation of the Borrowers to pay interest at the   Default Rate;   (d) change Section 2.12(a), Section 2.13 and Section 8.03 in a manner that   would alter the pro rata sharing of payments required thereby without the written consent of   each Lender in any manner that materially and adversely affects the Lenders without the   written consent of each Lender adversely affected thereby;   (e) change any provision of this Section 11.01 or the definition of   “Required Lenders”, or any other provision hereof specifying the number or percentage of   Lenders required to amend, waive or otherwise modify any rights hereunder or make any   determination or grant any consent hereunder without the written consent of each Lender   adversely affected thereby;   (f) release all or substantially all of the Collateral in any transaction or   series of related transactions, without the written consent of each Lender;   (g) release all or substantially all of the value of the Guaranty in respect of   the Obligations, without the written consent of each Lender, except as expressly provided in   the Loan Documents;      

 

93   110446369 v18      (h) subordinate any of the Obligations or any Lien created by this   Agreement or any other Loan Document (except as permitted in this Agreement and the Loan   Documents) without the consent of each Lender; or   (i) modify, waive, release or subordinate the Superpriority Claim status of   the Obligations (except as permitted in this Agreement and the Loan Documents) without the   consent of each Lender.   Notwithstanding anything to the contrary herein, no Defaulting Lender shall have any right to   approve or disapprove any amendment, waiver or consent hereunder, (and any amendment,   waiver or consent which by its terms requires the consent of all Lenders or each affected Lender   may be effected with the consent of the applicable Lenders other than Defaulting Lenders),   except that (x) any amendment, waiver or consent that would require the consent of each Lender   or each affected Lender pursuant to Section 11.01(a), 11.01(b) or 11.01(c) shall require the   consent of each Defaulting Lender affected thereby and (y) any other waiver, amendment or   modification requiring the consent of all Lenders or each affected Lender that by its terms affects   any Defaulting Lender more adversely than other affected Lenders shall require the consent of   such Defaulting Lender.   If any Lender does not consent to a proposed amendment, waiver, consent or release with   respect to any Loan Document (a “Non-Consenting Lender”) that requires the consent of each   Lender or each Lender or each affected Lender and that has been approved by the Required   Lenders, the Borrower may replace such non-consenting Lender in accordance with   Section 11.13; provided that such amendment, waiver, consent or release can be effected as a   result of the assignment contemplated by such Section (together with all other such assignments   required by the Borrower to be made pursuant to this paragraph).   The Agent shall not be required to execute any amendment or waiver hereunder if such   amendment affects Agent’s rights, privileges and immunities hereunder or under the other Loan   Documents.   11.02 Notices; Effectiveness; Electronic Communications.  (a)  Notices Generally.    Except in the case of notices and other communications expressly permitted to be given by   telephone (and except as provided in subsection (b) below), all notices and other   communications provided for herein shall be in writing and shall be delivered by hand or   overnight courier service, mailed by certified or registered mail or sent by telecopier or other   form of electronic transmission as follows, and all notices and other communications expressly   permitted hereunder to be given by telephone shall be made to the applicable telephone number,   as follows:   (i) if to the Borrower or the Administrative Agent, to the address, telecopier   number, electronic mail address or telephone number specified for such Person on   Schedule 11.02; and   (ii) if to any other Lender, to the address, telecopier number, electronic mail   address or telephone number specified in its Administrative Questionnaire.     

 

94   110446369 v18      Notices and other communications sent by hand or overnight courier service, or mailed   by certified or registered mail, shall be deemed to have been given when received; notices and   other communications sent by telecopier shall be deemed to have been given when sent (except   that, if not given during normal business hours for the recipient, shall be deemed to have been   given at the opening of business on the next business day for the recipient).  Notices and other   communications delivered through electronic communications to the extent provided in   subsection (b) below shall be effective as provided in such subsection (b).  Notwithstanding   anything to the contrary herein, a Borrowing Notice shall be deemed to have been given only   when received by the Administrative Agent.   (b) Electronic Communications.  Notices and other communications to the   Lenders hereunder may be delivered or furnished by electronic communication (including e-   mail and internet or intranet websites) pursuant to procedures approved by the Administrative   Agent, provided that the foregoing shall not apply to notices to any Lender pursuant to Article   II if such Lender has notified the Administrative Agent that it is incapable of receiving notices   under such Article by electronic communication.  The Administrative Agent or the Borrower   may, in its discretion, agree to accept notices and other communications to it hereunder by   electronic communications pursuant to procedures approved by it, provided that approval of   such procedures may be limited to particular notices or communications.   Unless the Administrative Agent otherwise prescribes, (i) notices and other   communications sent to an e-mail address shall be deemed received upon the sender’s receipt of   an acknowledgement from the intended recipient (such as by the “return receipt requested”   function, as available, return e-mail or other written acknowledgement), provided that if such   notice or other communication is not sent during the normal business hours of the recipient, such   notice or communication shall be deemed to have been sent at the opening of business on the   next business day for the recipient, and (ii) notices or communications posted to an internet or   intranet website shall be deemed received upon the deemed receipt by the intended recipient at   its e-mail address as described in the foregoing clause (i) of notification that such notice or   communication is available and identifying the website address therefor.   (c) The Platform.  THE PLATFORM IS PROVIDED “AS IS” AND “AS   AVAILABLE.”  THE AGENT PARTIES (AS DEFINED BELOW) DO NOT WARRANT   THE ACCURACY OR COMPLETENESS OF THE BORROWER MATERIALS OR THE   ADEQUACY OF THE PLATFORM, AND EXPRESSLY DISCLAIM LIABILITY FOR   ERRORS IN OR OMISSIONS FROM THE BORROWER MATERIALS.  NO WARRANTY   OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING ANY   WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE,   NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR FREEDOM FROM VIRUSES   OR OTHER CODE DEFECTS, IS MADE BY ANY AGENT PARTY IN CONNECTION   WITH THE BORROWER MATERIALS OR THE PLATFORM.  In no event shall the   Administrative Agent or any of its Related Parties (collectively, the “Agent Parties”) have any   liability to the any Loan Party, any Lender or any other Person for losses, claims, damages,   liabilities or expenses of any kind (whether in tort, contract or otherwise) arising out of the   Borrower’ or the Administrative Agent’s transmission of Borrower Materials through the   internet, except to the extent that such losses, claims, damages, liabilities or expenses are   determined by a court of competent jurisdiction by a final and nonappealable judgment to     

 

95   110446369 v18      have resulted from the gross negligence or willful misconduct of such Agent Party; provided,   however, that in no event shall any Agent Party have any liability to any Loan Party, any   Lender or any other Person for indirect, special, incidental, consequential or punitive damages   (as opposed to direct or actual damages).   (d) Change of Address, Etc.  The Borrower or the Administrative Agent   may change its address, telecopier or telephone number for notices and other communications   hereunder by notice to the other parties hereto.  Each other Lender may change its address,   telecopier or telephone number for notices and other communications hereunder by notice to   the Borrower, the Administrative Agent.  In addition, each Lender agrees to notify the   Administrative Agent from time to time to ensure that the Administrative Agent has on record   (i) an effective address, contact name, telephone number, telecopier number and electronic   mail address to which notices and other communications may be sent and (ii) accurate wire   instructions for such Lender.  Furthermore, each Public Lender agrees to cause at least one   individual at or on behalf of such Public Lender to at all times have selected the “Private Side   Information” or similar designation on the content declaration screen of the Platform in order   to enable such Public Lender or its delegate, in accordance with such Public Lender’s   compliance procedures and applicable Law, including United States Federal and state   securities Laws, to make reference to Borrower Materials that are not made available through   the “Public Side Information” portion of the Platform and that may contain material non-   public information with respect to Borrower or its securities for purposes of United States   Federal or state securities laws.   (e) Reliance by Administrative Agent and Lenders.  The Administrative   Agent and the Lenders shall be entitled to rely and act upon any notices (including telephonic   Borrowing Notices) purportedly given by or on behalf of the Borrower even if (i) such notices   were not made in a manner specified herein, were incomplete or were not preceded or   followed by any other form of notice specified herein, or (ii) the terms thereof, as understood   by the recipient, varied from any confirmation thereof.  The Borrower shall indemnify the   Administrative Agent, each Lender and the Related Parties of each of them from all losses,   costs, expenses and liabilities resulting from the reliance by such Person on each notice   purportedly given by or on behalf of any such Loan Party, indemnification payments to be   made to the Administrative Agent for its own benefit or for the benefit of the Lenders.  All   telephonic notices to and other telephonic communications with the Administrative Agent   may be recorded by the Administrative Agent, and each of the parties hereto hereby consents   to such recording.   11.03 No Waiver; Cumulative Remedies; Enforcement.  No failure by any Lender or the   Administrative Agent to exercise, and no delay by any such Person in exercising, any right,   remedy, power or privilege hereunder or under any other Loan Document shall operate as a   waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege   hereunder preclude any other or further exercise thereof or the exercise of any other right,   remedy, power or privilege.  The rights, remedies, powers and privileges herein provided, and   provided under each other Loan Document, are cumulative and not exclusive of any rights,   remedies, powers and privileges provided by law.     

 

96   110446369 v18      Notwithstanding anything to the contrary contained herein or in any other Loan   Document, the authority to enforce rights and remedies hereunder and under the other Loan   Documents against the Loan Parties or any of them shall be vested exclusively in, and all actions   and proceedings at law in connection with such enforcement shall be instituted and maintained   exclusively by, the Administrative Agent in accordance with Section 8.02 for the benefit of all   the Lenders, provided, however, that the foregoing shall not prohibit (a) the Administrative Agent   from exercising on its own behalf the rights and remedies that inure to its benefit (solely in its   capacity as Administrative Agent) hereunder and under the other Loan Documents, or (b) any   Lender from exercising setoff rights in accordance with Section 11.08 (subject to the terms of   Section 2.13); and provided, further, that if at any time there is no Person acting as   Administrative Agent hereunder and under the other Loan Documents, then (i) the Required   Lenders shall have the rights otherwise ascribed to the Administrative Agent pursuant to   Section 8.02 and (ii) in addition to the matters set forth in clauses (b), (c) and (d) of the   preceding proviso and subject to Section 2.13, any Lender may, with the consent of the Required   Lenders, enforce any rights and remedies available to it and as authorized by the Required   Lenders.   11.04 Expenses; Indemnity; Damage Waiver.  (a)  Costs and Expenses.  The Loan   Parties shall, jointly and severally, pay (i) all out-of-pocket expenses incurred by the Agent (and   any sub-agent thereof) or any Lender (including, without limitation, reasonable fees,   disbursements and other charges of one lead counsel (and any special or local counsel reasonably   necessary) and one financial advisor of the Lenders and one lead counsel (and any special or   local counsel reasonably necessary) for the Agent) in connection with the Facility, the Loan   Documents and the transactions contemplated hereby and thereby, and (ii) all out-of-pocket   expenses incurred by the Agent (and any sub-agent thereof) or any Lender (including, without   limitation, documented fees, disbursements and other charges of one lead counsel (and any   special or local counsel reasonably necessary) and one financial advisor of the Lenders and one   lead counsel (and any special or local counsels reasonably necessary) for the Agent) for the   enforcement costs and documentary taxes associated with the Facility, the Loan Documents and   the transactions contemplated hereby and thereby.     (b) Indemnification by the Loan Parties.  The Loan Parties shall, jointly   and severally, indemnify the Agent (and any sub-agent thereof), each Lender, and their   respective Related Parties (each such Person being called an “Indemnitee” and collectively,   “Indemnitees”) against, and hold each Indemnitee harmless from, any and all losses, claims,   damages and liabilities to which any such Indemnitee may become subject arising out of or in   connection with this Agreement, or any other Loan Document, or any agreement or   instrument contemplated hereby or thereby, the performance by the parties hereto of their   respective obligations hereunder or thereunder or the consummation of the transactions   contemplated hereby or thereby, or the use of the proceeds thereof, or any actual or alleged   presence or release of Hazardous Materials on or from any property owned or operated by   Borrower or any of its Subsidiaries, or any Environmental Liability related in any way to   Borrower or any of its Subsidiaries, or any actual or prospective claim, litigation,   investigation or proceeding relating to any of the foregoing, whether based on contract, tort or   any other theory (a “Proceeding”), regardless of whether any Indemnitee is a party thereto,   whether or not such Proceedings are brought by Borrower, its equity holders, affiliates,   creditors or any other person and to reimburse each Indemnitee promptly upon demand for     

 

97   110446369 v18      any reasonable and documented out-of-pocket legal (limited to charges of one outside primary   counsel for all Indemnitees, one local counsel in each relevant jurisdiction for all Indemnitees   and one or more conflicts counsel if one or more conflicts of interest arise (it being agreed that   the Agent’s determination that a conflict of interest exists with respect to it shall be conclusive   and binding)) or other expenses incurred in connection with investigating or defending any of   the foregoing, provided that the foregoing indemnity will not, as to any Indemnitee, apply to   losses, claims, damages, liabilities or related expenses (i) to the extent they are found by a   final, nonappealable judgment of a court of competent jurisdiction to arise from (x) the willful   misconduct, bad faith or gross negligence of such Indemnitees or its Related Parties or (y) a   material breach of the obligations of such Indemnitee (other than the Agent or any sub-agent   thereof) or its Related Parties under the Commitment Letter or any Loan Documents or (ii)   arising out of any claim, litigation, investigation or proceeding that does not involve an act or   omission of Borrower or any of its affiliates and that is brought by an Indemnitee against any   other Indemnitee.  No Indemnitee shall be liable for any damages arising from the use by   others of Information or other materials obtained through electronic, telecommunications or   other information transmission systems, except to the extent any such damages are found by a   final, nonappealable judgment of a court of competent jurisdiction to arise from the gross   negligence or willful misconduct of, such Indemnitee (or any of its Related Parties).  This   Section 11.04(b) shall not apply with respect to Taxes other than any Taxes that represent   losses, claims, damages, etc. arising from any non-Tax claim.    (c) Reimbursement by Lenders.  To the extent that the Borrower for any   reason fails to indefeasibly pay any amount required under subsection (a) or (b) of this   Section 11.04 to be paid by it to the Agent (or any sub-agent thereof), or any Related Party of   any of the foregoing, each Lender severally agrees to pay to the Agent (or any such sub-agent)   or such Related Party, as the case may be, such Lender’s Applicable Percentage (determined   as of the time that the applicable unreimbursed expense or indemnity payment is sought) of   such unpaid amount, provided that the unreimbursed expense or indemnified loss, claim,   damage, liability or related expense, as the case may be, was incurred by or asserted against   the Agent (or any such sub-agent) in its capacity as such, or against any Related Party of any   of the foregoing acting for the Agent (or any such sub-agent) in connection with such   capacity.  The obligations of the Lenders under this subsection (c) are subject to the   provisions of Section 2.12(c).  Without limitation of the foregoing, each Lender agrees to   reimburse Agent (or any such sub-agent) promptly upon demand for its applicable Percentage,   as set forth above, of any reasonable and documented out-of-pocket expenses (including   reasonable attorney’s fees) incurred by Agent (or any such sub-agent) in connection with the   preparation, execution, delivery, administration, modification, amendment or enforcement   (whether through negotiation, legal proceeding or otherwise) of, or legal advice in respect of   rights or responsibilities under, this Agreement and each other Loan Document, to the extent   that Agent (or any such sub-agent)  is not reimbursed for such expenses by the Borrower.   (d) Waiver of Consequential Damages, Etc.  To the fullest extent permitted   by applicable law, none of the parties hereto shall assert, and each of the parties hereto hereby   waives, any claim against any other party hereto, on any theory of liability, for special,   indirect, consequential or punitive damages (as opposed to direct or actual damages) arising   out of, in connection with, or as a result of, this Agreement, any other Loan Document or any   agreement or instrument contemplated hereby, the transactions contemplated hereby or     

 

98   110446369 v18      thereby, any Loan or the use of the proceeds thereof, except for any such claims which   constitute indemnification obligations of a Loan Party under Section 11.04(b) incurred or paid   by an Indemnitee to a third party.  No party hereto shall be liable for any damages arising   from the use by unintended recipients of any information or other materials distributed to such   unintended recipients by such party through telecommunications, electronic or other   information transmission systems in connection with this Agreement or the other Loan   Documents or the transactions contemplated hereby or thereby other than for direct or actual   damages resulting from the gross negligence or willful misconduct of such party or any   Related Party as determined by a final and nonappealable judgment of a court of competent   jurisdiction.   (e) Payments.  All amounts due under this Section shall be payable to the   Administrative Agent for its own benefit or for the benefit of the Lenders not later than five (5)   Business Days after demand therefor.   (f) Survival.  The agreements in this Section shall survive the resignation   of the Administrative Agent, the replacement of any Lender and the repayment, satisfaction or   discharge of the Obligations.   11.05 Payments Set Aside.  To the extent that any payment by or on behalf of the   Borrower is made to the Administrative Agent or any Lender, or the Administrative Agent or any   Lender exercises its right of setoff, and such payment or the proceeds of such setoff or any part   thereof is subsequently invalidated, declared to be fraudulent or preferential, set aside or required   (including pursuant to any settlement entered into by the Administrative Agent or such Lender in   its discretion) to be repaid to a trustee, receiver or any other party, then (a) to the extent of such   recovery, the obligation or part thereof originally intended to be satisfied shall be revived and   continued in full force and effect as if such payment had not been made or such setoff had not   occurred, and (b) each Lender severally agrees to pay to the Administrative Agent upon demand   its applicable share (without duplication) of any amount so recovered from or repaid by the   Administrative Agent, plus interest thereon from the date of such demand to the date such   payment is made at a rate per annum equal to the Federal Funds Rate from time to time in effect.    The obligations of the Lenders under clause (b) of the preceding sentence shall survive the   payment in full of the Obligations and the termination of this Agreement.   11.06 Successors and Assigns.  (a)  Successors and Assigns Generally.  The provisions   of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their   respective successors and assigns permitted hereby, except that the Borrower may not assign or   otherwise transfer any of their rights or obligations hereunder without the prior written consent   of the Administrative Agent and each Lender (unless in connection with a transaction permitted   under Section 7.04) and no Lender may assign or otherwise transfer any of its rights or   obligations hereunder except (i) to an assignee in accordance with the provisions of   Section 11.06(b), (ii) by way of participation in accordance with the provisions of   Section 11.06(e), or (iii) by way of pledge or assignment of a security interest subject to the   restrictions of Section 11.06(g) (and any other attempted assignment or transfer by any party   hereto shall be null and void).  Nothing in this Agreement, expressed or implied, shall be   construed to confer upon any Person (other than the parties hereto, their respective successors   and assigns permitted hereby, Participants to the extent provided in subsection (d) of this     

 

99   110446369 v18      Section 11.06 and, to the extent expressly contemplated hereby, the Related Parties of each of the   Administrative Agent and the Lenders) any legal or equitable right, remedy or claim under or by   reason of this Agreement.   (b) Assignments by Lenders.  Any Lender may at any time assign to one or   more assignees all or a portion of its rights and obligations under this Agreement; provided   that any such assignment shall be subject to the following conditions:   (i) Minimum Amounts.   (A) in the case of an assignment of the entire amount of the Loans or in   the case of an assignment to a Lender, an Affiliate of a Lender or an Approved   Fund, no minimum amount need be assigned; and   (B) in any case not described in subsection (b)(i)(A) of this   Section 11.06, the aggregate amount of the principal outstanding balance of   applicable Loans of the assigning Lender subject to each such assignment,   determined as of the date the Assignment and Assumption with respect to such   assignment is delivered to the Administrative Agent or, if “Trade Date” is   specified in the Assignment and Assumption, as of the Trade Date, shall not be   less than $500,000, unless each of the Administrative Agent and, so long as no   Event of Default has occurred and is continuing, the Borrower otherwise consents   (each such consent not to be unreasonably withheld or delayed); provided,   however, that concurrent assignments to members of an Assignee Group and   concurrent assignments from members of an Assignee Group to a single Eligible   Assignee (or to an Eligible Assignee and members of its Assignee Group) will be   treated as a single assignment for purposes of determining whether such minimum   amount has been met;   (ii) Proportionate Amounts.  Each partial assignment shall be made as an   assignment of a proportionate part of all the assigning Lender’s rights and obligations   under this Agreement with respect to the applicable Loans assigned;   (iii) Required Consents.  No consent shall be required for any assignment   except to the extent required by subsection (b)(i)(B) of this Section 11.06 and the consent   of the Administrative Agent (such consent not to be unreasonably withheld or delayed)   shall be required for assignments in respect of any Loan to a Person that is not a Lender,   an Affiliate of a Lender or an Approved Fund with respect to such Lender.   (iv) Assignment and Assumption.  The parties to each assignment shall   execute and deliver to the Administrative Agent an Assignment and Assumption, together   with a processing and recordation fee in the amount of $3,500; provided, however, that   the Administrative Agent may, in its sole discretion, elect to waive such processing and   recordation fee in the case of any assignment.  The assignee, if it is not a Lender, shall   deliver to the Administrative Agent an Administrative Questionnaire and such tax   documentation as is required pursuant to Section 3.01(f).       

 

100   110446369 v18      (v) No Assignment to Certain Persons.  No such assignment shall be made   (A) to Borrower or any of Borrower’ Affiliates or Subsidiaries, or (B) to a natural person.   Subject to acceptance and recording thereof by the Administrative Agent pursuant to   subsection (c) of this Section 11.06, from and after the effective date specified in each   Assignment and Assumption, the assignee thereunder shall be a party to this Agreement and, to   the extent of the interest assigned by such Assignment and Assumption, have the rights and   obligations of a Lender under this Agreement, and the assigning Lender thereunder shall, to the   extent of the interest assigned by such Assignment and Assumption, be released from its   obligations under this Agreement (and, in the case of an Assignment and Assumption covering   all of the assigning Lender’s rights and obligations under this Agreement, such Lender shall   cease to be a party hereto) but shall continue to be entitled to the benefits of Sections 3.01, 3.02,   3.03 and 11.04 with respect to facts and circumstances occurring prior to the effective date of   such assignment.  Upon request, the Borrower (at its expense) shall execute and deliver a Note to   the assignee Lender.  Any assignment or transfer by a Lender of rights or obligations under this   Agreement that does not comply with this subsection shall be treated for purposes of this   Agreement as a sale by such Lender of a participation in such rights and obligations in   accordance with Section 11.06(e).   (c) Preservation of Security Interests: The Luxembourg Guarantor hereby   expressly accepts, agrees and confirms, and each other party hereto hereby expressly reserves,   for the purposes of articles 1278 et s. and 1281 of the Luxembourg civil code, that   notwithstanding any assignment, transfer and/or novation permitted under, and made in   accordance with the provisions of this Agreement, any security created or guarantee given in   relation to this Agreement shall be preserved for the benefit of any new Lender or Participant.   (d) Register.  The Administrative Agent, acting solely for this purpose as   an agent of the Borrower (and such agency being solely for tax purposes), shall maintain at   the Administrative Agent’s Office a copy of each Assignment and Assumption delivered to it   and a register for the recordation of the names and addresses of the Lenders, and principal   amounts (and related interest amounts) of the Loans owing to, each Lender pursuant to the   terms hereof from time to time (the “Register”).  The entries in the Register shall be   conclusive absent manifest error, and the Borrower, the Administrative Agent and the Lenders   shall treat each Person whose name is recorded in the Register pursuant to the terms hereof as   the owner of the amounts owing to it hereunder as reflected in the Register for all purposes of   this Agreement, notwithstanding notice to the contrary.  The Register shall be available for   inspection by the Borrower and any Lender, at any reasonable time and from time to time   upon reasonable prior notice.   (e) Participations.  Any Lender may at any time, without the consent of, or   notice to, the Borrower or the Administrative Agent, sell participations to any Person (other   than a natural person or Borrower or any of Borrower’ Affiliates or Subsidiaries) (each, a   “Participant”) in all or a portion of such Lender’s rights and/or obligations under this   Agreement (including all or a portion of the Loans owing to it); provided that (i) such   Lender’s obligations under this Agreement shall remain unchanged, (ii) such Lender shall   remain solely responsible to the other parties hereto for the performance of such obligations   and (iii) the Borrower, the Administrative Agent, the Lenders shall continue to deal solely and     

 

101   110446369 v18      directly with such Lender in connection with such Lender’s rights and obligations under this   Agreement.  Any agreement or instrument pursuant to which a Lender sells such a   participation shall provide that such Lender shall retain the sole right to enforce this   Agreement and to approve any amendment, modification or waiver of any provision of this   Agreement; provided that such agreement or instrument may provide that such Lender will   not, without the consent of the Participant, agree to any amendment, waiver or other   modification described in the first proviso to Section 11.01 that affects such Participant.    Subject to subsection (e) of this Section 11.06, the Borrower agrees that each Participant shall   be entitled to the benefits of Sections 3.01, 3.02 and 3.03 (subject to the requirements and   limitations of such sections as if the Participant were a Lender) to the same extent as if it were   a Lender and had acquired its interest by assignment pursuant to Section 11.06(b).  To the   extent permitted by law, each Participant also shall be entitled to the benefits of Section 11.08   as though it were a Lender, provided such Participant agrees to be subject to Section 2.11 as   though it were a Lender.   Each Lender that sells a participation shall, acting solely for this purpose as a non-   fiduciary agent of the Borrower, maintain a register on which it enters the name and address of   each Participant and the principal amounts (and related interest amounts) of each Participant’s   interest in the Loans or other obligations under this Agreement (the “Participant Register”).  The   entries in the Participant Register shall be conclusive, absent manifest error, and each person   whose name is recorded in the Participant Register shall be treated as the owner of such   participation for all purposes of this Agreement notwithstanding any notice to the contrary.  No   Lender shall have any obligation to disclose all or any portion of any Participant Register   (including the identity of any Participant or any information relating to a Participant’s interest in   any Loans or its other obligations under any Loan Document) to any Person except to the extent   that such disclosure is necessary to establish that such Loan is in registered form under   Section 5f.103-1(c) of the U.S. Treasury Regulations.   (f) Limitations upon Participant Rights.  A Participant shall not be entitled   to receive any greater payment under Section 3.01 or 3.02 than the applicable Lender would   have been entitled to receive with respect to the participation sold to such Participant, except   to the extent such entitlement to receive a greater payment results from a Change in Law that   occurs after the Participant acquired the applicable participation.   (g) Certain Pledges.  Any Lender may at any time pledge or assign a   security interest in all or any portion of its rights under this Agreement (including under its   Note, if any) to secure obligations of such Lender, including any pledge or assignment to   secure obligations to a Federal Reserve Bank; provided that no such pledge or assignment   shall release such Lender from any of its obligations hereunder or substitute any such pledgee   or assignee for such Lender as a party hereto.   11.07 Treatment of Certain Information; Confidentiality.  Each of the Administrative   Agent and the Lenders agrees to maintain the confidentiality of the Information (as defined   below), except that Information may be disclosed (a) to its Affiliates and to its and its Affiliates’   respective partners, directors, officers, employees, agents, trustees, advisors and representatives   (it being understood that the Persons to whom such disclosure is made will be informed of the   confidential nature of such Information and instructed to keep such Information confidential),     

 

102   110446369 v18      (b) to the extent requested by any regulatory authority purporting to have jurisdiction over it   (including any self-regulatory authority, such as the National Association of Insurance   Commissioners), (c) to the extent required by applicable laws or regulations or by any subpoena   or similar legal process (provided that solely to the extent permitted by law and other than in   connection with routine audits and reviews by regulatory and self-regulatory authorities, each   Lender and the Administrative Agent shall notify Borrower as promptly as practicable of any   such requested or required disclosure in connection with any legal or regulatory proceeding),   (d) to any other party hereto, (e) in connection with the exercise of any remedies hereunder or   under any other Loan Document or any action or proceeding relating to this Agreement or any   other Loan Document or the enforcement of rights hereunder or thereunder, (f) subject to an   agreement containing provisions substantially the same as those of this Section 11.07, to (i) any   assignee of or Participant in, or any prospective assignee of or Participant in, any of its rights or   obligations under this Agreement or (ii) any actual or prospective counterparty (or its advisors) to   any swap or derivative transaction relating to the Borrower and its obligations, (g) on a   confidential basis to any agency rating in connection with rating Borrower or its Subsidiaries or   the credit facilities provided hereunder, (h) with the consent of Borrower or (i) to the extent such   Information (i) becomes publicly available other than as a result of a breach of this Section or   (ii) becomes available to the Administrative Agent, any Lender or any of their respective   Affiliates on a nonconfidential basis from a source other than Borrower and its Subsidiaries.   For purposes of this Section 11.07, “Information” means all information received from   any Loan Party or any Subsidiary thereof relating to any Loan Party or any Subsidiary thereof or   their respective businesses, other than any such information that is available to the   Administrative Agent or any Lender on a nonconfidential basis prior to disclosure by any Loan   Party or any Subsidiary thereof, provided that, in the case of information received from a Loan   Party or any such Subsidiary after the date hereof, such information is clearly identified at the   time of delivery as confidential.  Any Person required to maintain the confidentiality of   Information as provided in this Section 11.07 shall be considered to have complied with its   obligation to do so if such Person has exercised the same degree of care to maintain the   confidentiality of such Information as such Person would accord to its own confidential   information.   Each of the Administrative Agent and the Lenders acknowledges that (a) the Information   may include material non-public information concerning Borrower or a Subsidiary, as the case   may be, (b) it has developed compliance procedures regarding the use of material non-public   information and (c) it will handle such material non-public information in accordance with   applicable Law, including United States Federal and state securities Laws.   11.08 Right of Setoff.  If an Event of Default shall have occurred and be continuing,   each Lender and each of their respective Affiliates is hereby authorized at any time and from   time to time, after obtaining the prior written consent of the Administrative Agent, to the fullest   extent permitted by applicable law, to set off and apply any and all deposits (general or special,   time or demand, provisional or final, in whatever currency) at any time held and other   obligations (in whatever currency) at any time owing by such Lender or any such Affiliate to or   for the credit or the account of the Borrower against any and all of the Obligations of the   Borrower now or hereafter existing under this Agreement or any other Loan Document to such   Lender, irrespective of whether or not such Lender shall have made any demand under this     

 

103   110446369 v18      Agreement or any other Loan Document and although such obligations of any the Borrower may   be contingent or unmatured or are owed to a branch or office of such Lender different from the   branch or office holding such deposit or obligated on such indebtedness.  The rights of each   Lender and their respective Affiliates under this Section 11.08 are in addition to other rights and   remedies (including other rights of setoff) that such Lender or their respective Affiliates may   have.  Each Lender agrees to notify the Borrower and the Administrative Agent promptly after   any such setoff and application, provided that the failure to give such notice shall not affect the   validity of such setoff and application.   11.09 Interest Rate Limitation.  Notwithstanding anything to the contrary contained in   any Loan Document, the interest paid or agreed to be paid under the Loan Documents shall not   exceed the maximum rate of non-usurious interest permitted by applicable Law (the “Maximum   Rate”).  If the Administrative Agent or any Lender shall receive interest in an amount that   exceeds the Maximum Rate, the excess interest shall be applied to the principal of the Loans or,   if it exceeds such unpaid principal, refunded to the Borrower.  In determining whether the   interest contracted for, charged, or received by the Administrative Agent or a Lender exceeds the   Maximum Rate, such Person may, to the extent permitted by applicable Law, (a) characterize any   payment that is not principal as an expense, fee, or premium rather than interest, (b) exclude   voluntary prepayments and the effects thereof, and (c) amortize, prorate, allocate, and spread in   equal or unequal parts the total amount of interest throughout the contemplated term of the   Obligations hereunder.   11.10 Counterparts; Integration; Effectiveness.  This Agreement may be executed in   counterparts (and by different parties hereto in different counterparts), each of which shall   constitute an original, but all of which when taken together shall constitute a single contract.    This Agreement and the other Loan Documents constitute the entire contract among the parties   relating to the subject matter hereof and supersede any and all previous agreements and   understandings, oral or written, relating to the subject matter hereof.  Except as provided in   Section 4.01, this Agreement shall become effective when it shall have been executed by the   Administrative Agent and when the Administrative Agent shall have received counterparts hereof   that, when taken together, bear the signatures of each of the other parties hereto.  Delivery of an   executed counterpart of a signature page of this Agreement by telecopy or other electronic   imaging means shall be effective as delivery of a manually executed counterpart of this   Agreement.   11.11 Survival of Representations and Warranties.  All representations and warranties   made hereunder and in any other Loan Document or other document delivered pursuant hereto or   thereto or in connection herewith or therewith shall survive the execution and delivery hereof   and thereof.  Such representations and warranties have been or will be relied upon by the   Administrative Agent and each Lender, regardless of any investigation made by the   Administrative Agent or any Lender or on their behalf and notwithstanding that the   Administrative Agent or any Lender may have had notice or knowledge of any Default at the   time of any Loan, and shall continue in full force and effect as long as any Loan or any other   Obligation hereunder shall remain unpaid or unsatisfied.    11.12 Severability.  If any provision of this Agreement or the other Loan Documents is   held to be illegal, invalid or unenforceable, (a) the legality, validity and enforceability of the     

 

104   110446369 v18      remaining provisions of this Agreement and the other Loan Documents shall not be affected or   impaired thereby and (b) the parties shall endeavor in good faith negotiations to replace the   illegal, invalid or unenforceable provisions with valid provisions the economic effect of which   comes as close as possible to that of the illegal, invalid or unenforceable provisions.  The   invalidity of a provision in a particular jurisdiction shall not invalidate or render unenforceable   such provision in any other jurisdiction.     11.13 Replacement of Lenders.  If any Lender requests compensation under   Section 3.02, or if the Borrower is required to pay any additional amount to any Lender or any   Governmental Authority for the account of any Lender pursuant to Section 3.01, or if any Lender   is a Defaulting Lender after giving effect to Section 2.01(b) or a Non-Consenting Lender or if   any other circumstance exists hereunder that gives the Borrower the right to replace a Lender as   a party hereto, then the Borrower may, at its sole expense and effort, upon notice to such Lender   and the Administrative Agent, require such Lender to assign and delegate, without recourse (in   accordance with and subject to the restrictions contained in, and consents required by,   Section 11.06), all of its interests, rights and obligations under this Agreement and the related   Loan Documents to an assignee that shall assume such obligations (which assignee may be   another Lender, if a Lender accepts such assignment), provided that:    (a) the Borrower shall have paid to the Administrative Agent the   assignment fee specified in Section 11.06(b);   (b) such Lender shall have received payment of an amount equal to 100%   of the outstanding principal of its Loans, accrued interest thereon, accrued fees and all other   amounts payable to it hereunder and under the other Loan Documents (including any amounts   under Section 3.03) from the assignee (to the extent of such outstanding principal and accrued   interest and fees) or the Borrower (in the case of all other amounts);   (c) in the case of any such assignment resulting from a claim for   compensation under Section 3.02 or payments required to be made pursuant to Section 3.01,   such assignment will result in a reduction in such compensation or payments thereafter; and   (d) such assignment does not conflict with applicable Laws.   A Lender shall not be required to make any such assignment or delegation if, prior   thereto, as a result of a waiver by such Lender or otherwise, the circumstances entitling the   Borrower to require such assignment and delegation cease to apply.   11.14 Governing Law; Jurisdiction; Etc.     (a) GOVERNING LAW.  THIS AGREEMENT AND THE RIGHTS AND   OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND   SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF   THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICT OF LAWS   PRINCIPLES (OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK   GENERAL OBLIGATIONS LAW) THEREOF, EXCEPT AS GOVERNED BY THE   BANKRUPTCY CODE.     

 

105   110446369 v18      (b) SUBMISSION TO JURISDICTION.  EACH LOAN PARTY   IRREVOCABLY AND UNCONDITIONALLY AGREES THAT IT WILL NOT   COMMENCE ANY ACTION, LITIGATION OR PROCEEDING OF ANY KIND OR   DESCRIPTION, WHETHER IN LAW OR EQUITY, WHETHER IN CONTRACT OR IN   TORT OR OTHERWISE, AGAINST THE ADMINISTRATIVE AGENT, ANY LENDER   OR ANY RELATED PARTY OF THE FOREGOING IN ANY WAY RELATING TO THIS   AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS   RELATING HERETO OR THERETO, IN ANY FORUM OTHER THAN BANKRUPTCY   COURT OR, IN THE EVENT THE BANKRUPTCY COURT LACKS JURISDICTION   OVER SUCH ACTION, LITIGATION, OR PROCEEDING, TO ANY STATE OR   FEDERAL COURT SITTING IN THE BOROUGH OF MANHATTAN, NEW YORK, NEW   YORK.  EACH LOAN PARTY IRREVOCABLY AND UNCONDITIONALLY SUBMITS,   FOR ITSELF AND ITS PROPERTY, TO THE JURISDICTION OF THE BANKRUPTCY   COURT OR, IN THE EVENT THE BANKRUPTCY COURT LACKS SUBJECT MATTER   JURISDICTION OVER ANY ACTION, LITIGATION, OR PROCEEDING RELATING TO   THIS AGREEMENT, ANY OTHER LOAN DOCUMENT, OR THE TRANSACTIONS   RELATING HERETO OR THERETO, TO ANY STATE OR FEDERAL COURT SITTING   IN THE BOROUGH OF MANHATTAN, NEW YORK, NEW YORK, IN ANY ACTION   OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY   OTHER LOAN DOCUMENT, OR FOR RECOGNITION OR ENFORCEMENT OF ANY   JUDGMENT, AND EACH OF THE PARTIES HERETO IRREVOCABLY AND   UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH   ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH COURTS.    EACH OF THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY   SUCH ACTION, LITIGATION OR PROCEEDING SHALL BE CONCLUSIVE.    NOTHING IN THIS AGREEMENT OR IN ANY OTHER LOAN DOCUMENT SHALL   AFFECT ANY RIGHT THAT THE ADMINISTRATIVE AGENT OR ANY LENDER MAY   OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS   AGREEMENT OR ANY OTHER LOAN DOCUMENT, INCLUDING WITH RESPECT TO   COLLATERAL, AGAINST EACH LOAN PARTY OR ITS PROPERTIES IN THE   COURTS OF ANY JURISDICTION.   (c) WAIVER OF VENUE.  EACH LOAN PARTY IRREVOCABLY   AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY   APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE   TO THE LAYING OF VENUE OF ANY ACTION OR PROCEEDING ARISING OUT OF   OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT IN ANY   COURT REFERRED TO IN PARAGRAPH (B) OF THIS SECTION.  EACH OF THE   PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT   PERMITTED BY APPLICABLE LAW, THE DEFENSE OF AN INCONVENIENT   FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY   SUCH COURT.   (d) SERVICE OF PROCESS.  EACH PARTY HERETO IRREVOCABLY   CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES   IN SECTION 11.02.  NOTHING IN THIS AGREEMENT WILL AFFECT THE RIGHT OF     

 

106   110446369 v18      ANY PARTY HERETO TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED   BY APPLICABLE LAW.   (e) EACH LOAN PARTY THAT IS ORGANIZED UNDER THE LAWS   OF A JURISDICTION OUTSIDE THE UNITED STATES HEREBY APPOINTS THE   BORROWER, AS ITS AGENT FOR SERVICE OF PROCESS IN ANY MATTER   RELATED TO THIS AGREEMENT OR THE OTHER LOAN DOCUMENTS.   11.15 Waiver of Jury Trial.  EACH PARTY HERETO HEREBY IRREVOCABLY   WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT   IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR   INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER   LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR   THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).    EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR   ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR   OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF   LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND   (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN   INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS   BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS   SECTION.   11.16 No Advisory or Fiduciary Responsibility.  In connection with all aspects of each   transaction contemplated hereby (including in connection with any amendment, waiver or other   modification hereof or of any other Loan Document), the Borrower and each other Loan Party   acknowledges and agrees, and acknowledges its Affiliates’ understanding, that: (i) the Borrower   and the other Loan Parties have consulted their own legal, accounting, regulatory and tax   advisors to the extent it has deemed appropriate, and the Borrower and each other Loan Party is   capable of evaluating, and understands and accepts, the terms, risks and conditions of the   transactions contemplated hereby and by the other Loan Documents; (ii) (A) each of the   Administrative Agent and the Lenders is and has been acting solely as a principal and, except as   expressly agreed in writing by the relevant parties, has not been, is not, and will not be acting as   an advisor, agent or fiduciary for the Borrower, any other Loan Party or any of their respective   Affiliates, or any other Person and (B) neither the Administrative Agent nor any Lender has any   obligation to the Borrower, any other Loan Party or any of their respective Affiliates with respect   to the transactions contemplated hereby except those obligations expressly set forth herein and in   the other Loan Documents; and (iii) the Administrative Agent and the Lenders and their   respective Affiliates may be engaged in a broad range of transactions that involve interests that   differ from those of the Borrower, the other Loan Parties and their respective Affiliates, and   neither the Administrative Agent nor any Lender has any obligation to disclose any of such   interests to the Borrower, any other Loan Party or any of their respective Affiliates.  To the fullest   extent permitted by law, each of the Borrower and each other Loan Party hereby waives and   releases any claims that it may have against the Administrative Agent or any Lender with respect   to any breach or alleged breach of agency or fiduciary duty in connection with any aspect of any   transaction contemplated hereby.     

 

107   110446369 v18      11.17 Electronic Execution of Assignments and Certain Other Documents.  The words   “execution,” “signed,” “signature,” and words of like import in any Assignment and Assumption   or in any amendment or other modification hereof (including waivers and consents) shall be   deemed to include electronic signatures or the keeping of records in electronic form, each of   which shall be of the same legal effect, validity or enforceability as a manually executed   signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and   as provided for in any applicable law, including the Federal Electronic Signatures in Global and   National Commerce Act, the New York State Electronic Signatures and Records Act, or any   other similar state laws based on the Uniform Electronic Transactions Act.   11.18 USA PATRIOT Act.  Each Lender that is subject to the Patriot Act (as hereinafter   defined) and the Administrative Agent (for itself and not on behalf of any Lender) hereby notifies   the Borrower that pursuant to the requirements of the USA PATRIOT Act (Title III of Pub. L.   107-56 (signed into law October 26, 2001)) (the “Patriot Act”), it is required to obtain, verify and   record information that identifies each Loan Party, which information includes the name and   address of each Loan Party and other information that will allow such Lender or the   Administrative Agent, as applicable, to identify each Loan Party in accordance with the Patriot   Act.  The Borrower shall, promptly following a request by the Administrative Agent or any   Lender, provide all documentation and other information that the Administrative Agent or such   Lender requests in order to comply with its ongoing obligations under applicable “know your   customer” and anti-money laundering rules and regulations, including the Patriot Act.   11.19 Section 956 Override.  Notwithstanding any provision of any Loan Document to   the contrary (including any provision that would otherwise apply notwithstanding other   provisions or that is the beneficiary of other overriding language), (i) no more than 65% of the   voting interests and 100% of the non-voting interests in or of any Foreign Subsidiary with   respect to the Borrower shall be pledged or similarly hypothecated to guarantee or support any   Obligation of the Borrower, (ii) no Excluded Subsidiary with respect to the Borrower shall   guarantee or support any Obligation of the Borrower, (iii) no security or similar interest shall be   granted in the assets of any Excluded Subsidiary with respect to the Borrower, which security or   similar interest guarantees or supports any Obligation of the Borrower, and (iv) no Excluded   Subsidiary with respect to the Borrower shall be required to make any payment on behalf of the   Borrower.   11.20 Waiver of Immunities.  If any Loan Party has or hereafter may acquire any   immunity (sovereign or otherwise) from any legal action, suit or proceeding, from jurisdiction of   any court or from set-off or any legal process (whether service or notice, attachment prior to   judgment attachment in aid of execution of judgment, execution of judgment or otherwise) with   respect to itself or any of its property, such Loan Party hereby (to the fullest extent permitted by   applicable law) irrevocably waives and agrees not to plead or claim such immunity in respect of   its obligations under this Agreement and each other Loan Documents.  Each Loan Party agrees   that the foregoing waivers shall be effective to the fullest extent permitted under the Foreign   Sovereign Immunities Act of 1976 of the United States of America, as amended from time to   time, and are intended to be irrevocable and not subject to withdrawal for purposes of such Act.     

 

108   110446369 v18      11.21 Final DIP Order.  In the event of any conflict between, or inconsistence among,   the Final DIP Order, on the one hand, and this Agreement or any other Loan Documents, on the   other hand, the Final DIP Order shall control.           

 

    

 

    

 

    

 

    

 

    

 

    

 

    

 

    

 

    

 

    

 

    

 

    

 

[Signature Page to DIP Credit Agreement]      LENDER:      ADVANTAGE OPPORTUNITIES FUND, L.P.      By: Advantage Capital Management LLC,    its Investment Manager         By:    Name:    Title:            

 

    

 

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

 

    

 

    

 

    

 

    

 

SCHEDULES TO CREDIT AGREEMENT1         Index      Schedule 2.01 - Commitments and Applicable Percentages   Schedule 2.01(A) - Backstop Lender Commitments   Schedule 5.06 - Litigation   Schedule 5.08(c) - Owned Real Property   Schedule 5.08(d) - Leased Real Property   Schedule 5.08(g) - Investments   Schedule 5.11 - Taxes   Schedule 5.12(d) - Pension Plans   Schedule 5.13 - Subsidiaries and Other Equity Investments; Loan Parties   Schedule 5.16 - Compliance with Laws   Schedule 5.18 - Material Contracts   Schedule 5.20 - Bank Accounts and Securities Accounts   Schedule 6.01 - Reporting Dates   Schedule 6.14 - Guarantors   Schedule 7.01 - Liens   Schedule 7.02 - Indebtedness   Schedule 7.08  - Transactions with Affiliates   Schedule 7.09  - Burdensome Agreements; Negative Pledges   Schedule 11.02 - Administrative Agent’s Office, Certain Addresses for Notices                                                         1 Capitalized terms used but not defined in these schedules have the respective meanings assigned to them in the   Senior Secured Superpriority Debtor-In-Possession Credit Agreement, dated as of July 27, 2015, among GT   Advanced Technologies Inc., a Delaware corporation, as a debtor and debtor-in-possession, as Borrower (as defined   therein), certain Subsidiaries (as defined therein) of Borrower, each as a debtor and debtor-in-possession, as   Guarantors (as defined therein), each Lender (as defined therein) from time to time party thereto and Cantor   Fitzgerald Securities, as Agent (as defined therein) for the Lenders.     

 

SCHEDULE 2.01   Commitments and Applicable Percentages   Backstop Lender Commitment   Aristeia Master, L.P. $15,566,477.46   Compass ESMA LP $179,361.67   Compass TSMA LP $230,813.95   WFF Cayman II Ltd. $11,691,547.19   New Generation Limited Partnership $2,441,795.43   New Generation Turnaround Fund (Bermuda) LP $6,966,069.69   Brandytrust Multi-Strategy NGA, LLC $897,735.27   P New Generation Turnaround IE a fund of Permal   Managed Account Platform ICAV $610,726.96   Sciens Group Alternative Strategies PCC Limited acting   in respect of its Olive Zeta Cell $208,025.40   Wbox 2014-3 Ltd. $13,600,430.40   QPB Holdings Ltd.  $9,094,952.19   Pine River Deerwood Fund Ltd. $138,629.46   Pine River Fixed Income Master Fund Ltd. $928,099.65   Pine River Convertibles Master Fund Ltd. $4,797,259.07   Pine River Master Fund Ltd. $1,066,729.11   Mariner LDC $288,625.02   Caspian Select Credit Master Fund, Ltd. $5,855,499.87   Caspian Solitude Master Fund, L.P. $253,261.90   Caspian HLSC1, LLC $376,058.78   Caspian SC Holdings, L.P. $478,076.91   Super Caspian Cayman Fund Limited $248,477.52   Jefferies Leveraged Credit Products, LLC $5,211,344.11   Latigo Ultra Master Fund, Ltd. $2,667,252.58   Latigo Advisors Master Fund, Ltd. $334,000.00   Latigo Partners MA2, LP $892,000.00   Crown Managed Accounts SPC acting for and on behalf   of Crown/Latigo Segregated Portfolio $618,000.00   AQR Diversified Arbitrage Fund $3,124,889.64   Hare & Co. o/b/o Advanced Series Trust – AST   Academic Strategies Asset Allocation Portfolio $370,415.67   Advantage Opportunities Fund, L.P. $180,450.10   Ingalls & Snyder, LLC $555,115.00   Privet Fund LP $4,377,880.00   Wilfred Global Opportunity Fund LP $750,000.00              

 

49333159_13   SCHEDULE 2.01(A)   Backstop Lender Commitments   Backstop Lender Commitment   Aristeia Master, L.P. $20,485,484.34   Compass ESMA LP $236,039.96   Compass TSMA LP $303,751.16   WFF Cayman II Ltd. $15,386,076.10   New Generation Limited Partnership $3,213,402.79   New Generation Turnaround Fund (Bermuda) LP $9,167,347.71   Brandytrust Multi-Strategy NGA, LLC $1,181,419.62   P New Generation Turnaround IE a fund of Permal   Managed Account Platform ICAV $803,716.68   Sciens Group Alternative Strategies PCC Limited acting   in respect of its Olive Zeta Cell $273,761.43   Wbox 2014-3 Ltd. $17,898,166.41   QPB Holdings Ltd.  $11,968,957.08   Pine River Deerwood Fund Ltd. $182,436.37   Pine River Fixed Income Master Fund Ltd. $1,221,379.14   Pine River Convertibles Master Fund Ltd. $6,313,192.94   Pine River Master Fund Ltd. $1,403,815.51   Mariner LDC $379,830.53   Caspian Select Credit Master Fund, Ltd. $7,705,837.83   Caspian Solitude Master Fund, L.P. $333,292.66   Caspian HLSC1, LLC $494,893.35   Caspian SC Holdings, L.P. $629,149.21    Super Caspian Cayman Fund Limited $326,996.42   Jefferies Leveraged Credit Products, LLC $6,858,128.85   Latigo Ultra Master Fund, Ltd. $3,510,104.40   Latigo Advisors Master Fund, Ltd. $439,544.00   Latigo Partners MA2, LP $1,173,872.00   Crown Managed Accounts SPC acting for and on behalf   of Crown/Latigo Segregated Portfolio $813,228.00   AQR Diversified Arbitrage Fund $4,112,354.77   Hare & Co. o/b/o Advanced Series Trust – AST   Academic Strategies Asset Allocation Portfolio $487,467.022   Advantage Opportunities Fund, L.P. $237,472.33   Ingalls & Snyder, LLC $730,531.34   Privet Fund LP $5,761,290.08   Wilfred Global Opportunity Fund LP $987,000.00              

 

49333159_13   SCHEDULE 5.06      Litigation         1. On October 15, 2014, the Securities and Exchange Commission (the “SEC”) sent a letter   to the Company noting that it was conducting an inquiry into matters involving the   Company.  The SEC is seeking certain information regarding trading activity in the   Company’s securities, as well as the Company’s sapphire business and securities offering   going back to January 1, 2013, and requesting the preservation and production of   documents. The Company is fully cooperating with the SEC.      2. On January 21, 2015, Tera Xtal Technology Corp. (“TXT”) commenced an adversary   proceeding in the Bankruptcy Court [Case No. 15-1007-HJB] against Hong Kong Debtor   seeking to recover approximately $16.6 million in payments made by TXT in connection   with the purchase of certain undelivered furnaces prior to the Petition Date, including on   theories of express or resulting trust, constructive trust, and equitable liens.      3. Levy v. Gutierrez et al, 1:14-cv-443 (D. NH, Oct. 9, 2014) was the first class action   complaint filed against GT Advanced Technologies, Inc. officers and directors as part of   the follow-on litigation to the Chapter 11 petition.  After Levy, twelve additional class   actions were filed in the United States District Court for the District of New Hampshire.    Those cases were consolidated on February 4, 2015, and affidavits regarding service of   the original complaints were filed on February 6, 2015.  On May 20, 2015, Bernstein   Litowitz Berger & Grossman and Orr & Reno were appointed as lead counsel, and   Douglas Kurtz was appointed as lead plaintiff.    

 

49333159_13   SCHEDULE 5.08(c)      Owned Real Property         Real property at 243 and 247 Daniel Webster Highway, Merrimack, NH  03054.  The record   owner of this real property is GTAT Corporation.  The real property has book and estimated fair   values of $14,482,674.        

 

49333159_13   SCHEDULE 5.08(d)      Leased Real Property         Location Lessor Lessee Lease   Expiration Date   Annualized Rent Amount   CALIFORNIA    2369 Bering Drive,   San Jose, CA   Dollinger   Properties   GTAT Corporation 07/31/2015 $161,892   5891 Rue Ferrari   Drive   San Jose, CA   MPJ-A, LLC GTAT Corporation 04/30/2018 $305,212 through 5/1/2016;    $314,369 through 5/1/2017;   $323,800 through 5/1/2018   MASSACHUSETTS    27 Congress Street   Salem, MA 01970   Shetland Harbor   Trust   GTAT Corporation   (successor by   merger to GT   Crystal Systems,   LLC, successor by   merger to Crystal   Systems, Inc.)   05/31/2023 $198,088 through 5/31/2016;   $205,391 through 5/31/2017;   $213,607 through 5/31/2018;   $219,997 through 5/31/2019;   $226,569 through 5/31/2020;   $233,325 through 5/31/2021;   $240,262 through 5/31/2022;   $247,382 through 5/31/2023   35 Congress Street   Salem, MA 01970   Shetland Harbor   Trust   GTAT Corporation   (successor by   merger to GT   Crystal Systems,   LLC, successor by   merger to Crystal   Systems, Inc.)   05/31/2018 $124,348 through 5/31/2016;   $129,009 through 5/31/2017;   $134,148 through 5/31/2018   One Industrial Drive   Danvers, MA   One Industrial   Drive LLC   GTAT Corporation 09/30/2015 $251,700   MONTANA    First Interstate   Business Center, 4th   Floor   101 East Front Street   Missoula, MT 59802   N47, LLC GTAT Corporation 12/31/2020 $273,649 through 12/31/2016;    $287,508 through 12/31/2020   6900 Kestrel Drive   Suites 9 and 10   Missoula, MT 59803   Sheridan   Montana   Ventures L.L.C.   GTAT Corporation 12/31/2015 $37,200   6900 Kestrel Drive   Suite 8   Missoula, MT 59803   Sheridan   Montana   Ventures L.L.C.   GTAT Corporation 12/31/2015 $20,400   6900 Kestrel Drive   Suite 11   Missoula, MT 59803   Sheridan   Montana   Ventures L.L.C.   GTAT Corporation 12/31/2015 $17,604   6900 Kestrel Drive   Suite 15   Missoula, MT 59803   Sheridan   Montana   Ventures L.L.C.   GTAT Corporation 12/31/2015 $18,000   6900 Kestrel Drive   Suites 16-18   Missoula, MT 59803   Sheridan   Montana   Ventures L.L.C.   GTAT Corporation 12/31/2015 $54000     

 

      49333159_13   SCHEDULE 5.08(g)      Investments         1.  Equity Interests      Entity Issuer Number of Shares   GT Advanced Technologies Inc. GTAT Corporation 100 shares   GTAT Corporation GT Advanced Equipment   Holding LLC   100% (Sole Member)      GTAT Corporation GT Equipment Holdings, Inc. 1,000 shares   GTAT Corporation Lindbergh Acquisition Corp. 100 shares   GTAT Corporation GT Sapphire Systems Holding   LLC   100% (Sole Member)      GTAT Corporation GT Advanced Technologies   Limited   11,208,000 shares   Lindbergh Acquisition Corp. GT Advanced Cz LLC 100% (Sole Member)   GT Sapphire Systems Holding   LLC   GT Sapphire Systems Group   LLC   100% (Sole Member)      GT Advanced Technologies   Limited    GT Advanced Technologies   Taiwan Co., Ltd.   500,000 shares   GT Advanced Technologies   Limited    GT Solar Mauritius, Ltd. 128,055 shares   GT Advanced Technologies   Limited    GT Advanced Technologies   GmbH   100%   GT Advanced Technologies   Limited    GT Advanced Technologies   Luxembourg S.À R.L.   12,501 corporate units   GT Solar Mauritius, Ltd.  GT Solar (Shanghai), Ltd. 100%   GT Solar Mauritius, Ltd. GT Solar China Co. Ltd 100%   GT Solar (Shanghai), Ltd. GT Sapphire Technology   (Guiyang) Co., Ltd.   100%   GT Advanced Technologies   Luxembourg S.À R.L.   GTAT IP Holding LLC 100% (Sole Member)        

 

      49333159_13   2.  Promissory Notes or other Indebtedness with an Individual Principal Amount of More than   $500,000      (a) Lender: GT Advanced Technologies Limited   Borrower: GT Advanced Technologies S.à r.l.   Amount: $57,843,972      (b) Lender: GT Advanced Technologies S.à r.l.   Borrower: GTAT IP Holding LLC    Amount: $57,843,972      (c) Priority Note as described in the Intercompany Agreement   Lender: GTAT Corporation    Borrower: GT Advanced Technologies Limited    Amount $22,500,000      (d) Contingent Note as described in the Intercompany Agreement   Lender: GTAT Corporation   Borrower: GT Advanced Technologies Limited   Amount: $130,000,000    

 

      49333159_13   SCHEDULE 5.112      Taxes      Debtor   Filing   Date Name Tax Type   Total Filed   Claim Amount   GT Advanced Cz LLC 3/11/2015   Department of the   Treasury - Internal   Revenue Service   Corporate Income   Tax $0.00   GT Advanced Cz LLC 3/24/2015 Franchise Tax Board   Bank and   Corporation Tax $3,492.47   GT Advanced   Technologies Inc. 3/16/2015   City of Los Angeles   Office of Finance   Municipal Business   Tax $1,944.66   GT Advanced   Technologies Inc. 10/20/2014   Colorado Department   of Revenue   Corporate Income   Tax $0.00   GT Advanced   Technologies Inc. 2/13/2015   Department of the   Treasury - Internal   Revenue Service   Corporate Income   Tax $51,708,189.80   GT Advanced   Technologies Inc. 3/24/2015 Franchise Tax Board   Bank and   Corporation Tax $19,806.28   GT Advanced   Technologies Inc. 5/11/2015 Franchise Tax Board   Bank and   Corporation Tax $38,480.42   GT Advanced   Technologies Inc. 3/24/2015   Montana Department   of Revenue   Corporate License   Tax $33,426.00   GT Advanced   Technologies Inc. 12/10/2014   New Hampshire   Department of   Revenue   Administration State Business Tax $70,143.20   GT Advanced   Technologies Inc. 11/13/2014   Progressive Business   Advisors S.A.   Business Duty Tax   (Greece) $5,413.00   GT Advanced   Technologies Inc. 3/24/2015   State of New   Hampshire,   Department of   Employment   Security   Unemployment   Contribution Tax $401.52   GT Sapphire Systems   Group LLC 3/11/2015   Department of the   Treasury - Internal   Revenue Service   WT-FICA Tax and   FUTA $0.00   GT Sapphire Systems   Group LLC 3/24/2015 Franchise Tax Board   Partnership Tax   Liability $1,708.00   GT Sapphire Systems   Holding LLC 3/11/2015   Department of the   Treasury - Internal   Revenue Service   Miscellaneous   Penalties $10,000.00                                                      2 Items in this schedule indicated with “*” are anticipated to be expunged after the Closing Date because they are   duplicative of other claims or have been amended by subsequent claims already listed.     

 

      49333159_13   GT Sapphire Systems   Holding LLC 3/24/2015 Franchise Tax Board   Partnership Tax   Liability $1,708.00   GTAT Corporation 11/10/2014   Arizona Department   of Revenue Sales Tax (TPT) $20,716.14   GTAT Corporation 11/24/2014 City of Mesa   Use Tax for Mesa   AZ Facility $6,474.00   GTAT Corporation 3/11/2015   Department of the   Treasury - Internal   Revenue Service   WT-FICA and   FUTA $0.00   GTAT Corporation 3/24/2015 Franchise Tax Board   Bank and   Corporation Tax $19,806.28   GTAT Corporation 5/11/2015 Franchise Tax Board   Bank and   Corporation Tax $38,480.42   GTAT Corporation 5/21/2015   Massachusetts   Department of   Revenue Sales and Use Tax $9,237.02   GTAT Corporation 11/24/2014   Ohio Department of   Taxation   Commercial   Activity Tax $150.00   GTAT Corporation 1/20/2015   Pennsylvania   Department of   Revenue   Employer   Withholding Tax   and Capital Stock-   Franchise Tax $4,942.81   GTAT Corporation 11/24/2014 SCC Tax Collector   Personal Property   Taxes $1,003.66   Lindbergh Acquisition   Corp. 3/24/2015 Franchise Tax Board   Bank and   Corporation Tax $821.97   GT Advanced Cz   LLC*   11/28/2014 Department of the   Treasury - Internal   Revenue Service   Corporate Income   Tax    $3,000.00   GT Advanced Cz   LLC*   12/15/2014 Department of the   Treasury - Internal   Revenue Service   Corporate Income   Tax    $3,000.00   GT Advanced Cz   LLC*   3/16/2015 Department of the   Treasury - Internal   Revenue Service   Corporate Income   Tax   $0.00   GT Advanced   Technologies Inc.*   1/23/2015 Department of the   Treasury - Internal   Revenue Service   Corporate Income   Tax $100,533,352.00   GT Advanced   Technologies Inc.*   1/26/2015 Department of the   Treasury - Internal   Revenue Service   Corporate Income   Tax $100,533,352.00   GT Advanced   Technologies Inc.*   2/24/2015 Department of the   Treasury - Internal   Revenue Service   Corporate Income   Tax   $51,708,189.80   GT Advanced   Technologies Inc.*   11/7/2014 Montana Department   of Revenue   Corporate License   Tax   $960,797.68    

 

      49333159_13   GT Advanced   Technologies Inc.*   10/24/2014 New Hampshire   Department of   Revenue   Administration   State Business Tax $466.88   GT Sapphire Systems   Group LLC*   11/28/2014 Department of the   Treasury - Internal   Revenue Service   WT-FICA Tax,   FUTA, and   Partnership Tax    $3,266.38   GT Sapphire Systems   Group LLC*   12/15/2014 Department of the   Treasury - Internal   Revenue Service   WT-FICA Tax,   FUTA, and   Partnership Tax    $3,266.38   GT Sapphire Systems   Group LLC*   3/16/2015 Department of the   Treasury - Internal   Revenue Service   WT-FICA Tax and   FUTA   $0.00   GT Sapphire Systems   Holding LLC*   12/2/2014 Department of the   Treasury - Internal   Revenue Service   WT-FICA Tax,   FUTA, and   Miscellaneous   Penalties   $10,900.00   GT Sapphire Systems   Holding LLC*   12/15/2014 Department of the   Treasury - Internal   Revenue Service   WT-FICA Tax,   FUTA, and   Miscellaneous   Penalties    $10,900.00   GT Sapphire Systems   Holding LLC*   3/16/2015 Department of the   Treasury - Internal   Revenue Service   Miscellaneous   Penalties    $10,000.00   GTAT Corporation* 11/28/2014 Department of the   Treasury - Internal   Revenue Service   WT-FICA and   FUTA   $200.00   GTAT Corporation* 12/15/2014 Department of the   Treasury - Internal   Revenue Service   WT-FICA and   FUTA    $200.00   GTAT Corporation* 3/16/2015 Department of the   Treasury - Internal   Revenue Service   WT-FICA and   FUTA   $0.00        

 

      49333159_13   SCHEDULE 5.12(d)      Pension Plans         None.           

 

      49333159_13   SCHEDULE 5.13      Subsidiaries and Other Equity Investments; Loan Parties         Part (a):  Subsidiaries of Borrower      Subsidiaries of Borrower Issuer Number of Shares   GT Advanced Technologies Inc. GTAT Corporation 100 shares   GTAT Corporation GT Advanced Equipment   Holding LLC   100% (Sole Member)      GTAT Corporation GT Equipment Holdings,   Inc.   1,000 shares   GTAT Corporation Lindbergh Acquisition Corp. 100 shares   GTAT Corporation GT Sapphire Systems   Holding LLC   100% (Sole Member)      GTAT Corporation GT Advanced Technologies   Limited   11,208,000 shares   GT Sapphire Systems Holding LLC GT Sapphire Systems Group   LLC   100% (Sole Member)      Lindbergh Acquisition Corp. GT Advanced Cz LLC 100% (Sole Member)      GT Advanced Technologies Limited   (not a Loan Party)   GT Advanced Technologies   Taiwan Co., Ltd.   500,000 shares   GT Advanced Technologies Limited   (not a Loan Party)   GT Solar Mauritius, Ltd. 128,055 shares   GT Advanced Technologies Limited   (not a Loan Party)   GT Advanced Technologies   GmbH   100%   GT Advanced Technologies Limited   (not a Loan Party)   GT Advanced Technologies   Luxembourg S.À R.L.   12,501 corporate units   GT Solar Mauritius, Ltd. (not a Loan   Party)   GT Solar (Shanghai), Ltd. 100%   GT Solar Mauritius, Ltd. (not a Loan   Party)   GT Solar China Co., Ltd 100%   GT Solar (Shanghai), Ltd. (not a Loan   Party)   GT Sapphire Technology   (Guiyang) Co., Ltd.   100%   GT Advanced Technologies   Luxembourg S.À R.L.   GTAT IP Holding LLC 100% (Sole Member)                                

 

      49333159_13            Part (b):  Loan Parties as of the Closing Date      Loan Party Jurisdiction      Principal Place of   Business   U.S. Taxpayer   Identification   Number or   Unique   Identification   Number   GT Advanced Technologies   Inc.   Delaware 243 Daniel Webster   Highway   Merrimack, NH 03054   03-0606749   GTAT Corporation Delaware 243 Daniel Webster   Highway   Merrimack, NH 03054   02-0471760   GT Advanced Equipment   Holding LLC   Delaware 243 Daniel Webster   Highway   Merrimack, NH 03054   46-3928329   GT Equipment Holdings, Inc. New Hampshire 243 Daniel Webster   Highway   Merrimack, NH 03054   04-3640040   Lindbergh Acquisition Corp. Delaware 243 Daniel Webster   Highway   Merrimack, NH 03054   37-1645073   GT Advanced Cz LLC Delaware 243 Daniel Webster   Highway   Merrimack, NH 03054   26-1609815   GT Sapphire Systems Holding   LLC   California 243 Daniel Webster   Highway   Merrimack, NH 03054   20-5904417   GT Sapphire Systems Group   LLC   Delaware 243 Daniel Webster   Highway   Merrimack, NH 03054   20-5905126   GT Advanced Technologies   Luxembourg S.À R.L.   Luxembourg 7, rue Robert Stümper   L-2557 Luxembourg   98-1080872   GTAT IP Holding LLC Delaware 243 Daniel Webster   Highway   Merrimack, NH 03054   46-1494456           

 

      49333159_13   SCHEDULE 5.16      Compliance with Laws         None.     

 

      49333159_13   SCHEDULE 5.18      Material Contracts         1. Purchase Order and First Amendment to Purchase Order, both effective as of April 9,   2015, by and between GT Advanced Technologies Limited and Guangdong Saifei   Sapphire Technology Co., Ltd.      2. Supply Agreement dated May 16, 2011 and amended on December 27, 2011, February   14, 2012 and December 21, 2012, by and between GT Advanced Technologies Limited   and OCI Company Ltd.      

 

      49333159_13   SCHEDULE 5.20      Bank Accounts and Securities Accounts3         Loan Party Bank / Broker   Dealer   Account Number Purpose   GTAT Corporation Bank of America —3294 DDA   GTAT Corporation  Bank of America —4487 CDA   GTAT Corporation Bank of America —6508 DDA – Utility Deposit   Account   GT Advanced Equipment   Holding LLC   Bank of America —8144 DDA   GTAT Corporation d/b/a   Crystal Systems   Bank of America —1546 DDA   GTAT Corporation d/b/a   Crystal Systems   Bank of America —7590 CDA   Lindbergh Acquisition Corp Bank of America —8343 DDA   GT Advanced Cz LLC Bank of America —5023 DDA   GT Advanced Cz LLC Bank of America —6497 CDA   GT Sapphire Systems Group   LLC   Bank of America —7965 DDA   GT Sapphire Systems Group   LLC   Bank of America —9105 CDA   GTAT IP Holding LLC Bank of America —3253 DDA   GT Advanced Technologies   Luxembourg S.à r.l.   Bank of America   (Luxembourg)   —1013 DDA   GT Solar (Shanghai), Ltd.   d/b/a GT Solar Shanghai   CO., LTD   Bank of China —5567 RMB Operating Account   GT Solar (Shanghai), Ltd.   d/b/a GT Solar Shanghai   CO., LTD   Shanghai Bank —6076 RMB Tax Payments   GT Solar (Shanghai), Ltd.   d/b/a GT Solar Shanghai   CO., LTD   Shanghai Pudong   Development   Bank   —2271 US FX Account   GT Solar China Co., Ltd. HSBC —7-055 USD Operating Account   GT Solar China Co., Ltd. HSBC —7-056 USD Operating Account   GT Solar China Co., Ltd. Shanghai Pudong   Development   Bank   —1721 RMB Operating Account   GT Sapphire Technology   (Guiyang) Co., Ltd.   ICBC —5723 RMB Operating Account                                                      3 As of July 6, 2015.     

 

      49333159_13   GT Advanced Technologies   Taiwan Co., Ltd.   Bank of America   Taiwan   —7013 TWD Operating Account   GT Advanced Technologies   Taiwan Co., Ltd.   Bank of America   Taiwan   —7055 USD Operating Account   GT Advanced Technologies   Taiwan Co., Ltd.   Bank of America   Taiwan   —7914 TWD Payroll Account   GT Advanced Technologies   Limited   Bank of America   US   —7350 DDA   GT Advanced Technologies   Limited   Bank of America   US   —5316 DDA – Kerry Logistics   Deposit Account   GT Advanced Technologies   Limited   Bank of America   Hong Kong   —2014 HK DDA   GT Advanced Technologies   Limited   Bank of America   Hong Kong   —2022 USD DDA   GT Advanced Technologies   Limited   Bank of America   Hong Kong   —9230 CNY DDA   GT Advanced Technologies   Limited   Bank of America   Hong Kong   —2048 HKD Payroll Account   GT Advanced Technologies   Limited   Bank of America   Hong Kong   —2056 EUR DDA   GT Advanced Technologies   Limited   Bank of America   Hong Kong   —9201 USD Time Deposit –   Restricted Cash   Collateral Account   GT Advanced Technologies   GmbH   Bank of America —2018 EUR Operating   GT Advanced Technologies   GmbH   Bank of America —2026 USD Operating Account    

 

      49333159_13   SCHEDULE 6.01      Reporting Dates         6.01(d) 13 Week Cash Flow Forecast      Thursday, August 06, 2015   Thursday, September 03, 2015   Thursday, October 01, 2015   Thursday, November 05, 2015   Thursday, December 03, 2015   Thursday, January 07, 2016   Thursday, February 04, 2016   Thursday, March 03, 2016   Thursday, April 07, 2016   Thursday, May 05, 2016   Thursday, June 02, 2016   Thursday, July 7, 2016         6.01(f)(i)(x) Cash Balance Reporting (Non-Chinese Subsidiaries) - Weekly Flash Report      Tuesday, July 28, 2015   Tuesday, August 04, 2015   Tuesday, August 11, 2015   Tuesday, August 18, 2015   Tuesday, August 25, 2015   Tuesday, September 01, 2015   Tuesday, September 08, 2015   Tuesday, September 15, 2015   Tuesday, September 22, 2015   Tuesday, September 29, 2015   Tuesday, October 06, 2015   Tuesday, October 13, 2015   Tuesday, October 20, 2015   Tuesday, October 27, 2015   Tuesday, November 03, 2015   Tuesday, November 10, 2015   Tuesday, November 17, 2015   Tuesday, November 24, 2015   Tuesday, December 01, 2015   Tuesday, December 08, 2015   Tuesday, December 15, 2015   Tuesday, December 22, 2015   Tuesday, December 29, 2015     

 

      49333159_13   Tuesday, January 05, 2016   Tuesday, January 12, 2016   Tuesday, January 19, 2016   Tuesday, January 26, 2016   Tuesday, February 02, 2016   Tuesday, February 09, 2016   Tuesday, February 16, 2016   Tuesday, February 23, 2016   Tuesday, March 01, 2016   Tuesday, March 08, 2016   Tuesday, March 15, 2016   Tuesday, March 22, 2016   Tuesday, March 29, 2016   Tuesday, April 05, 2016   Tuesday, April 12, 2016   Tuesday, April 19, 2016   Tuesday, April 26, 2016   Tuesday, May 03, 2016   Tuesday, May 10, 2016   Tuesday, May 17, 2016   Tuesday, May 24, 2016   Tuesday, May 31, 2016   Tuesday, June 07, 2016   Tuesday, June 14, 2016   Tuesday, June 21, 2016   Tuesday, June 28, 2016   Tuesday, July 5, 2016   Tuesday, July 12, 2016   Tuesday, July 19, 2016   Tuesday, July 26, 2016         6.01(f)(i)(y) Cash Balance Reporting (Chinese Subsidiaries) - Bi-Weekly Flash Report      Tuesday, July 28, 2015   Tuesday, August 11, 2015   Tuesday, August 25, 2015   Tuesday, September 08, 2015   Tuesday, September 22, 2015   Tuesday, October 06, 2015   Tuesday, October 20, 2015   Tuesday, November 03, 2015   Tuesday, November 17, 2015   Tuesday, December 01, 2015   Tuesday, December 15, 2015   Tuesday, December 29, 2015     

 

      49333159_13   Tuesday, January 12, 2016   Tuesday, January 26, 2016   Tuesday, February 09, 2016   Tuesday, February 23, 2016   Tuesday, March 08, 2016   Tuesday, March 22, 2016   Tuesday, April 5, 2016   Tuesday, April 19, 2016   Tuesday, May 3, 2016   Tuesday, May 17, 2016   Tuesday, May 31, 2016   Tuesday, June 14, 2016   Tuesday, June 28, 2016   Tuesday, July 12, 2016   Tuesday, July 26, 2016         6.01(f)(ii) Cash Balance Reporting - Bi-Weekly Covenant Compliance Report      Tuesday, July 28, 2015   Tuesday, August 11, 2015   Tuesday, August 25, 2015   Tuesday, September 08, 2015   Tuesday, September 22, 2015   Tuesday, October 06, 2015   Tuesday, October 20, 2015   Tuesday, November 03, 2015   Tuesday, November 17, 2015   Tuesday, December 01, 2015   Tuesday, December 15, 2015   Tuesday, December 29, 2015   Tuesday, January 12, 2016   Tuesday, January 26, 2016   Tuesday, February 09, 2016   Tuesday, February 23, 2016   Tuesday, March 08, 2016   Tuesday, March 22, 2016   Tuesday, April 05, 2016   Tuesday, April 19, 2016   Tuesday, May 03, 2016   Tuesday, May 17, 2016   Tuesday, May 31, 2016   Tuesday, June 14, 2016   Tuesday, June 28, 2016   Tuesday, July 12, 2016   Tuesday, July 26, 2016     

 

      49333159_13   SCHEDULE 6.14      Guarantors         1. GTAT Corporation   2. GT Advanced Equipment Holding LLC   3. GT Equipment Holdings, Inc.   4. Lindbergh Acquisition Corp.   5. GT Sapphire Systems Holding LLC   6. GT Advanced Cz LLC   7. GT Sapphire Systems Group LLC   8. GT Advanced Technologies Luxembourg S.à r.l.   9. GTAT IP Holding LLC        

 

      49333159_13   SCHEDULE 7.01      Liens         Entity Jurisdiction Original   File Date   Number Secured   Party   Collateral Description   GT Advanced   Equipment   Holding LLC   DE –   Secretary of   State   11/13/2013 20134464989 Apple Inc. All assets (specifically   including sapphire growing   furnaces and related   components and equipment).   GT Advanced   Equipment   Holding LLC   DE –   Secretary of   State   1/28/2015 20150390053 Apple Inc. 2,036 sapphire furnaces at   Mesa, AZ (which were   purchased or installed in   connection with certain   agreements with the Secured   Party, dated October 31, 2013)   and all proceeds of the   foregoing.   GT Advanced   Technologies   Limited      DC –   Recorder of   Deeds   11/12/2014 2014104289 Expeditors   International   of   Washington,   Inc.   All personal property in   Secured Party’s possession,   custody or control or en route   and all proceeds and products of   any of the forgoing.   GT Advanced   Technologies   Inc.   DE –   Secretary of   State   10/06/2014 20144012696 Eplus   Technology,   Inc.   IT equipment (including   computer equipment) purchased   from Secured Party.   GT Sapphire   Systems Group   LLC   DE –   Secretary of   State   11/12/2014 20144571519 Expeditors   International   of   Washington,   Inc.   All personal property in   Secured Party’s possession,   custody or control or en route   and all proceeds and products of   any of the forgoing in whatever   form.   GTAT   Corporation   DE –   Secretary of   State   10/06/2014 20144006045 Expeditors   International   of   Washington,   Inc.   All personal property in   Secured Party’s possession,   custody or control or en route   and all proceeds and products of   any of the forgoing in whatever   form.         1. Liens on restricted cash in connection with:   a. the letter of credit issued by Bank of America HK on behalf of GT Advanced   Technologies Limited for the benefit of CNIEC Shaanxi Corporation on August     

 

      49333159_13   13, 2014 and expiring on September 5, 2015 for the amount of $1,267,000   supported by $1,330,350 cash collateral.   2. Liens in connection with:   a. the Carve-Out;   b. any equitable claim or other similar claim Tera Xtal Technology Corp. may have   against up to 34 ASF furnaces located in Mesa, Arizona, pursuant to the terms of   the December 15, 2014 order of the Bankruptcy Court approving the terms of the   Apple Settlement Agreement and solely upon the entry of a court order providing   that such party has a lien or security interest in such assets; and   3. By order entered on April 16, 2015, the Bankruptcy Court approved a stipulation between   Hong Kong Debtor and Kerry Logistics (Hong Kong) Ltd. (“Kerry Logistics”), which   provided, among other things, that Hong Kong Debtor would fund an adequate protection   account in the amount of $901,244.29, with Kerry Logistics receiving a fully perfected   replacement lien on the funds deposited in that adequate protection account to secure   Hong Kong Debtor’s obligations in respect of certain warehouse charges asserted by   Kerry Logistics (but solely to the extent that Kerry Logistics’ claim is ultimately allowed   as a secured claim).   4. Commissioner’s Return of Highway Layout relating to the widening of Route 3, dated   July 10, 1968, and recorded in the Hillsborough County Registry of Deeds in Book 2040,   Page 219.   Limited to as shown on that certain ALTA/ACSM Land Title Survey made by Bock &   Clark dated February 1, 2006, revised through February 7, 2006, bearing Project No.   20051480 (the “Survey”)   5. Easement from S. Robert Winer and Dorothy L. Winer to C & I Investment Associates   dated September 11, 1986 and recorded in the Hillsborough County Registry of Deeds in   Book 4312, Page 185, limited to as shown on Survey.   6. Easement Deed from GT Equipment Technology, Inc. to Public Service Company of   New Hampshire and Verizon New England, Inc. dated March 25, 2002 and recorded in   the Hillsborough County Registry of Deeds in Book 6609, Page 1622, limited to as   shown on Survey.   7. Declaration of Covenants, Restrictions, Easements, Conditions and Reservations With   Respect to Property Owned by GT Equipment Technologies, Inc. dated July 26, 2004 and   recorded in the Hillsborough County Registry of Deeds in Book 7285, Page 2780, limited   to as shown on Survey.   8. Drainage Easement Deed from GT Equipment Technologies, Inc. to the State of New   Hampshire dated July 26, 2004 and recorded in the Hillsborough County Registry of   Deeds in Book 7285, Page 2786, limited to as shown on Survey.     

 

      49333159_13   9. The following facts as shown on plan entitled “GT Equipment Technologies, Inc., Site   Plan Parcel 3D-2141 Merrimack, New Hampshire, June 25, 2001, Last Revised: October   16, 2001”, prepared for Arenco Group by Meridian Land Services, Inc. and recorded in   the Hillsborough County Registry of Deeds as Plan #31452:   (a) 100 foot setback along westerly boundary line;   (b) 20 foot setbacks along northerly and southerly boundary lines;   (c) 30 foot setback along easterly boundary line;   (d) Stormwater Catch basin in westerly portion of premises, limited to as shown on   Survey;   (e) Proposed Pool at Southerly portion of premises, limited to as shown on Survey.   10. The following facts shown on plan entitled “GT Equipment Technologies, Inc., Site Plan   Parcel 3D-2141 Merrimack, New Hampshire, June 25, 2001, Last Revised: April 22,   2002” prepared for Arenco Group by Meridian Land Services, Inc., and recorded in the   Hillsborough County Registry of Deeds as Plan #32011:   (a) same as in exception above;   (b) 20 foot wide Emergency Access Drive, limited to as shown on Survey.   11. The following facts shown on plan entitled “GT Equipment Technologies, Inc.,   Subdivision Plan Parcel 3D-2/041 Merrimack, New Hampshire, December 17, 2003, Last   Revised: June 11, 2004”, prepared by Meridian Land Services, Inc. and recorded in the   Hillsborough County Registry of Deeds as Plan #33319:   (a) same as above two exceptions.   12. Scrivener’s error resulting from the fact that the grantee in the Warranty Deed from S.   Robert Winer and William M. Prizer, III as Trustees, et al dated November 16, 2001 and   recorded in the Hillsborough County Registry of Deeds in Book 6563, Page 2449 was GT   Equipment Technology, Inc. rather than GT Equipment Technologies, Inc. See the   Affidavit of James Bosco dated April 3, 2007 and recorded in said registry of deeds in   Book 7839, Page 120.   13. The following facts as disclosed by an ALTA/ACSM survey made by Bock & Clark by   Eric C. Mitchell & Associates, Inc. on February 1, 2006, revised through February 7,   2006, designated Job Number 20051480:   (a) driveway encroachment onto the northwest corner of Lot 041-01.   14. Easement Deed granted by GT Equipment Technology(sic), Inc., et. als. to Sprint   Communications Company, L.P., dated September 2, 2014, and recorded in the   Hillsborough County Registry of Deeds at Book 8634, Page 2396;     

 

      49333159_13   15. Attachment of Green Leaf Construction, LLC vs. GT Equipment Technology, d/b/a   GTAT Corporation, dated October 27, 2014, and recorded in the Hillsborough County   Registry of Deeds at Book 8702, Page 2236;    16. Attachment of CI Design, Inc., vs. GT Equipment Technology, d/b/a GTAT Corporation,   dated October 27, 2014, and recorded in the Hillsborough County Registry of Deeds at   Book 8702, Page 2241;    17. Notice of Mechanic’s Lien of Granite State Plumbing & Heating, LLC vs. GTAT   Corporation, dated October 22, 2014, and recorded in the Hillsborough County Registry   of Deeds at Book 8702, Page 2808;    18. Attachment of Interstate Electrical Services Corporation vs. GTAT Corporation, f/k/a GT   Solar Incorporated, f/k/a GT Equipment Technologies, Inc., dated November 3, 2014,   and recorded in the Hillsborough County Registry of Deeds at Book 8704, Page 2125;    19. Attachment of Decco, Inc. vs. GTAT Corporation, f/k/a GT Equipment Technologies,   Inc., dated November 7, 2014, and recorded in the Hillsborough County Registry of   Deeds at Book 8705, Page 2518;    20. Notice of Mechanic’s Lien of Eastern Vent Systems, Inc. vs. GTAT Corporation, dated   January 5, 2015, and recorded in the Hillsborough County Registry of Deeds at Book   8741, Page 1696; and   21. Real Estate Tax Lien filed by Town of Merrimack vs. GT Equipment Technologies Inc.,   dated April 23, 2015, and recorded in the Hillsborough County Registry of Deeds at   Book 8748, Page 1477.   22. Notice of Mechanic’s Lien of Metro Walls, Inc. dated October 23, 2014 and filed with   the Bankruptcy Court as Document no. 271.           

 

      49333159_13   SCHEDULE 7.02      Indebtedness         1. Indebtedness underlying the Liens set forth in the table and items 1, 2, 3, 15, 16, 17, 18,   19, 20, 21 and 22 of Schedule 7.01.           

 

      49333159_13   SCHEDULE 7.08      Transactions with Affiliates         1. Master Sales and Support Services Agreement, by and between GT Solar Inc. and   GT Solar (Shanghai), Ltd. d/b/a GT Solar (Shanghai) Co., Ltd., dated as of   January 1, 2007.    2. Customer Support Service Agreement, by and between GT Solar Inc. and GT   Solar Taiwan Co., Ltd., dated as of July 1, 2009   3. Customer Support Service Agreement, by and between GT Solar Inc. and GT   Solar (Shanghai), Ltd. d/b/a GT Solar Shanghai Co., Ltd., dated as of April 1,   2009    4. License Agreement, by and between GT Solar Inc. and GT Solar Hong Kong,   Ltd., dated as of July 5, 2010   5. Amendment No. 1 to License Agreement, by and between GT Advanced   Technologies Inc. and GT Advanced Technologies Ltd., dated as of April 3, 2011   6. Management and Administrative Services Agreement, by and between GT Solar   Inc. and GT Solar Hong Kong, Ltd., dated as of July 5, 2010   7. Management and Administrative Services Agreement, by and between GT Crystal   Systems, LLC and GT Advanced Technologies Ltd., dated as of April 3, 2011   8. Management and Administrative Services Agreement, by and between GT   Advanced Cz LLC and GT Advanced Technologies Ltd., dated as of April 3,   2012   9. Manufacturing Services Agreement, by and between GT Solar Hong Kong and   GT Solar Inc., dated as of July 5, 2010   10. Amendment No. 1 to the Manufacturing Services Agreement, by and between GT   Advanced Technologies Ltd. and GTAT Corp., dated as of July 5, 2010   11. Customer Support Services Agreement, by and between GT Advanced   Technologies GmbH and GT Advanced Technologies Ltd., dated as of August 1,   2013   12. Processing Trade Contract, by and between GT Solar China Co., Ltd. and GT   Solar Hong Kong Ltd., dated as of June 15, 2010   13. Agreement to Provide Procurement and Related Services, by and between GT   Advanced Technologies Ltd. and GT Solar China Co., Ltd., dated as of February   5, 2012     

 

      49333159_13   14. Agreement to Provide Procurement and Related Services, by and between GT   Solar (Shanghai), Ltd. d/b/a GT Solar (Shanghai) Co., Ltd. and GT Solar China   Co., Ltd., dated as of April 4, 2012    15. Contract Research and Development Agreement, by and between GT Solar Inc.   and GT Solar China Co., Ltd., dated as of April 5, 2010   16. Agreement to Provide Procurement and Related Services, by and between GT   Solar Hong Kong Ltd. and GT Solar (Shanghai), Ltd. d/b/a GT Solar (Shanghai)   Co. Ltd., dated as of October 4, 2010   17. Amendment No. 1 to the Agreement to Provide Procurement and Related   Services, by and between GT Advanced Technologies Ltd. and GT Solar   (Shanghai), Ltd. d/b/a GT Solar (Shanghai) Co. Ltd., dated as of April 3, 2011   18. Customer Support Services Agreement, by and between GT Solar (Shanghai),   Ltd. d/b/a GT Solar (Shanghai) Co. Ltd. and GT Solar Hong Kong Ltd., dated as   of October 4, 2010   19. Amendment No. 1 to the Customer Support Services Agreement, by and between   GT Solar (Shanghai), Ltd. d/b/a GT Solar (Shanghai) Co. Ltd. and GT Advanced   Technologies Ltd., dated as of April 3, 2011   20. Customer Support Services Agreement, by and between GT Solar Taiwan Co.,   Ltd. and GT Solar Hong Kong, Ltd., dated as of October 4, 2010   21. Amendment No. 1 to the Customer Support Services Agreement, by and between   GT Advanced Technologies Ltd. and GT Solar Taiwan Co., Ltd., dated as of   April 3, 2011   22. Worldwide Assignment Agreement, dated as of April 2, 2010   23. First Amendment to Worldwide Assignment Agreement, dated as of April 3, 2011   24. Second Amendment to Worldwide Assignment Agreement, dated as of July 29,   2011   25. License Agreement, by and among GT Solar Inc., GT Crystal Systems, LLC and   GT Solar Hong Kong, dated as of April 1, 2011   26. Agreement for Sharing Development Costs, by and between GT Solar Inc. and   GT Solar Hong Kong Ltd., dated as of April 1, 2011    27. Contract Research and Development Agreement, by and among GT Advanced Cz   LLC, GTAT Corp., GT Solar China Co., Ltd., and GTAT IP Holding LLC, dated   as of October 2, 2011     

 

      49333159_13   28. Contract Research and Development Agreement, by and between GT Advanced   Technologies Ltd. and GT Solar China Co., Ltd., dated as of April 3, 2011   29. Loan Agreement, by and between GTAT IP Holding LLC and GT Advanced   Technologies Luxembourg S.à r.l., dated as of December 20, 2012   30. Loan Agreement, by and between GT Advanced Technologies Luxembourg S.à   r.l.and GT Advanced Technologies Ltd., dated as of December 20, 2012   31. Services Agreement, by and between GTAT Corp. and GT Advanced   Technologies Ltd., dated as of January 1, 2014        

 

      49333159_13   SCHEDULE 7.09      Burdensome Agreements; Negative Pledges         1. The Apple Settlement Agreement.      2. Intercompany Agreement between and among the Borrower and certain of its   subsidiaries, including GT Advanced Technologies Limited, resolving certain   intercompany disputes and/or providing for the allocation of proceeds from the sales of   ASF Furnaces and other assets.                 

 

      49333159_13   SCHEDULE 11.02      Administrative Agent’s Office, Certain Addresses for Notices         If to the Administrative Agent:      Cantor Fitzgerald Securities   110 E. 59th Street, 7th Floor   New York, NY 10022   Attn: Nils Horning – GT Advanced   Technologies Agency   Email: nhorning@cantor.com         If to the Borrower: GT Advanced Technologies Inc.   243 Daniel Webster Highway   Merrimack, NH 03054   Attn: Michele Rayos   Tel: (603) 681-3851   Fax: (603) 589-2951   Email: michele.rayos@gtat.com               

 

A-1    Form of Committed Loan Notice   49333216_3   EXHIBIT A      FORM OF BORROWING NOTICE      Date:  ___________, _____   To: Cantor Fitzgerald Securities., as Administrative Agent   Ladies and Gentlemen:   Reference is made to that certain Senior Secured Superpriority Debtor-in-Possession   Credit Agreement, dated as of July 27, 2015 (as amended, restated, extended, supplemented or   otherwise modified in writing from time to time, the “Credit Agreement;” the terms defined   therein being used herein as therein defined), among GT Advanced Technologies Inc., a   Delaware corporation, as a debtor and debtor-in-possession, (the “Borrower”), certain   Subsidiaries of Borrower, each as a debtor and debtor-in-possession, the Lenders from time to   time party thereto, and Cantor Fitzgerald Securities, as Administrative Agent and Collateral   Agent.   The undersigned refer to the Credit Agreement and hereby give you irrevocable notice,   pursuant to Section 2.02 of the Credit Agreement, of the borrowing of the Loans:   1. The requested dated of the Loans, which shall be a Business Day is             .   2. The aggregate principal amount of the requested Loans is $   .   3. The undersigned hereby direct the Agent to disburse the proceeds of the Loans to   be made on the Closing Date as set forth in the distribution of proceeds statement/funds flow   memorandum attached hereto as Annex A.   .   GT ADVANCED TECHNOLOGIES INC.   By:      Name:      Title:              

 

A-2    Form of Committed Loan Notice   49333216_3   Annex A        

 

B -1   Form of Note   49333216_3   EXHIBIT B      FORM OF NOTE   $_________________  New York, New York     [__________], 201[_]    FOR VALUE RECEIVED, GT ADVANCED TECHNOLOGIES INC., a Delaware   corporation, as a debtor and debtor-in-possession (the “Borrower”), hereby promises to pay to   _____________________ or registered assigns (the “Lender”), in accordance with the provisions   of the Credit Agreement (as hereinafter defined), the principal amount of the Loans made by the   Lender to the Borrower under that certain Senior Secured Superpriority Debtor-in-Possession   Credit Agreement, dated as of July 27, 2015 (as amended, restated, extended, supplemented or   otherwise modified in writing from time to time, the “Credit Agreement;” the terms defined   therein being used herein as therein defined), among the Borrower, certain Subsidiaries of   Borrower, each as a debtor and debtor-in-possession, the Lenders from time to time party   thereto, and Cantor Fitzgerald Securities, as Administrative Agent and Collateral Agent.   The Borrower promises to pay interest on the unpaid principal amount of the Loans from   the date of such Loans until such principal amount is paid in full at such interest rate and at such   times as provided in the Credit Agreement.  All payments of principal and interest shall be made   to the Administrative Agent for the account of the Lender in Dollars in immediately available   funds at the Administrative Agent’s Office in accordance with the terms of the Credit   Agreement.  If any amount is not paid in full when due hereunder, such unpaid amount shall bear   interest, to be paid upon demand, from the due date thereof until the date of actual payment (and   before as well as after judgment) computed at the per annum rate set forth in the Credit   Agreement.   This Note is one of the Notes referred to in the Credit Agreement, is entitled to the   benefits thereof and may be prepaid in whole or in part subject to the terms and conditions   provided therein.  This Note is also entitled to the benefits of the Guaranty and is secured by the   Collateral.  Upon the occurrence and continuation of one or more of the Events of Default   specified in the Credit Agreement, all amounts then remaining unpaid on this Note shall become,   or may be declared to be, immediately due and payable all as provided in the Credit Agreement.    The Loans made by the Lender shall be evidenced by a loan account or records maintained by   the Lender in the ordinary course of business. The Lender may also attach schedules to this Note   and endorse thereon the date, amount and maturity of the Loan and payments with respect   thereto.   The Borrower, for itself, its successors and assigns, hereby waives diligence,   presentment, protest and demand and notice of intent to accelerate, notice of acceleration, notice   of protest, demand, dishonor and non-payment of this Note.   THIS NOTE AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES   HEREUNDER SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND   ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK   WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES (OTHER THAN SECTIONS     

 

B -2   Form of Note   49333216_3   5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW) THEREOF,   EXCEPT AS GOVERNED BY THE BANKRUPTCY CODE   - Signature Page to Follow -     

 

B -3   Form of Note   49333216_3      GT ADVANCED TECHNOLOGIES, INC.,   a Delaware corporation      By:      Name:      Title:         

 

C -1   Form of Administrative Questionnaire   49333216_3   EXHIBIT C      FORM OF ADMINISTRATIVE QUESTIONNAIRE      [to be provided]           

 

   [ENTITY NAME]             ADMINISTRATIVE CONTACTS      CREDIT CONTACTS                                                                        Name:         Title:          Address:         Phone:         Fax:         Email:         Name:         Title:          Address:         Phone:         Fax:         Email:         Wire Instructions      Full Legal Name, Signature Block and Address:         Bank Name:         City, state:          ABA no:         Acct. name:         Acct. no.:         Reference:           Full Legal Name:              Signature Block:         By:    ______________________________________   Name:   Title:                     Mailing Address:        Tax ID:             

 

D - 1   Form of Assignment and Assumption   49333216_3   EXHIBIT D   FORM OF ASSIGNMENT AND ASSUMPTION   This Assignment and Assumption (this “Assignment and Assumption”) is dated as of the   Effective Date set forth below and is entered into by and between [the][each] Assignor identified in   item 1 below ([the][each, an] “Assignor”) and [the][each] Assignee identified in item 2 below   ([the][each, an] “Assignee”).  [It is understood and agreed that the rights and obligations of [the   Assignors][the Assignees] hereunder are several and not joint.]  Capitalized terms used but not   defined herein shall have the meanings given to them in the Credit Agreement identified below (as   amended, the “Credit Agreement”), receipt of a copy of which is hereby acknowledged by the   Assignee.  The Standard Terms and Conditions set forth in Annex 1 attached hereto are hereby   agreed to and incorporated herein by reference and made a part of this Assignment and Assumption   as if set forth herein in full.   For an agreed consideration, [the][each] Assignor hereby irrevocably sells and assigns to [the   Assignee][the respective Assignees], and [the][each] Assignee hereby irrevocably purchases and   assumes from [the Assignor][the respective Assignors], subject to and in accordance with the   Standard Terms and Conditions and the Credit Agreement, as of the Effective Date inserted by the   Administrative Agent as contemplated below (i) all of [the Assignor’s][the respective Assignors’]   rights and obligations in [its capacity as a Lender][their respective capacities as Lenders] under the   Credit Agreement and any other documents or instruments delivered pursuant thereto in the   amount[s] and equal to the percentage interest[s] identified below of all the outstanding rights and   obligations under the Commitment/Loans identified below and (ii) to the extent permitted to be   assigned under applicable law, all claims, suits, causes of action and any other right of [the Assignor   (in its capacity as a Lender)][the respective Assignors (in their respective capacities as Lenders)]   against any Person, whether known or unknown, arising under or in connection with the Credit   Agreement, any other documents or instruments delivered pursuant thereto or the loan transactions   governed thereby or in any way based on or related to any of the foregoing, including, but not limited   to, contract claims, tort claims, malpractice claims, statutory claims and all other claims at law or in   equity related to the rights and obligations sold and assigned pursuant to clause (i) above (the rights   and obligations sold and assigned by [the][any] Assignor to [the][any] Assignee pursuant to clauses   (i) and (ii) above being referred to herein collectively as [the][an] “Assigned Interest”).  Each such   sale and assignment is without recourse to [the][any] Assignor and, except as expressly provided in   this Assignment and Assumption, without representation or warranty by [the][any] Assignor.   1. Assignor[s]: ______________________________         ______________________________    [Assignor [is] [is not] a Defaulting Lender]      2. Assignee[s]: ______________________________         ______________________________    [for each Assignee, indicate [Affiliate][Approved Fund] of [identify Lender]]      3. Borrower(s): ______________________________        

 

D - 2   Form of Assignment and Assumption   49333216_3   4. Administrative Agent: Cantor Fitzgerald Securities, as the administrative agent under the   Credit Agreement.      5. Credit Agreement: Senior Secured Superpriority Debtor-in-Possession Credit   Agreement, dated as of July 27, 2015, among the GT Advanced Technologies, Inc., as   debtor and debtor-in-possession, certain Subsidiaries of Borrower, each as a debtor and   debtor-in-possession, the Lenders from time to time party thereto, and Cantor Fitzgerald   Securities, as Administrative Agent and Collateral Agent      6. Assigned Interest[s]:               Assignor[s]1            Assignee[s]2   Aggregate   Amount of   Commitment/Loans   for all Lenders3   Amount of   Commitment   /Loans   Assigned   Percentage   Assigned of   Commitment/   Loans4         CUSIP    Number             $________________ $_________ ____________%      $________________ $_________ ____________%      $________________ $_________ ____________%       [7. Trade Date: __________________]5      - Signature Page to Follow -                                                      1 List each Assignor, as appropriate.   2 List each Assignee and, if available, its market entity identifier, as appropriate.   3 Amounts in this column and in the column immediately to the right to be adjusted by the counterparties to take   into account any payments or prepayments made between the Trade Date and the Effective Date.   4 Set forth, to at least 9 decimals, as a percentage of the Commitment/Loans of all Lenders thereunder.   5    To be completed if the Assignor and the Assignee intend that the minimum assignment amount is to be determined   as of the Trade Date.     

 

D - 3   Form of Assignment and Assumption   49333216_3   Effective Date: __________________, 20__ [TO BE INSERTED BY ADMINISTRATIVE AGENT   AND WHICH SHALL BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER IN   THE REGISTER THEREFOR.]   The terms set forth in this Assignment and Assumption are hereby agreed to:   ASSIGNOR[S]   [NAME OF ASSIGNOR]      By: _____________________________      [NAME OF ASSIGNOR]      By: _____________________________       Title:      ASSIGNEE[S]   [NAME OF ASSIGNEE]      By: _____________________________    Title:         [NAME OF ASSIGNEE]      By: _____________________________    Title:           

 

D - 4   Form of Assignment and Assumption   49333216_3   [Consented to and]6 Accepted:      CANTOR FITZGERALD SECURITIES, as     Administrative Agent      By: _________________________________         Title:         GT ADVANCED TECHNOLOGIES, INC., as     Borrower 7      By: _________________________________         Title:                                                      6    To be added only if the consent of the Administrative Agent is required by the terms of the Credit Agreement.   7    To be added only if the consent of the Borrower is required by Section 11.06(b)(i)(B) of the Credit Agreement.     

 

D - 5   Form of Assignment and Assumption   49333216_3   ANNEX 1 TO ASSIGNMENT AND ASSUMPTION   STANDARD TERMS AND CONDITIONS FOR    ASSIGNMENT AND ASSUMPTION   1. Representations and Warranties.   1.1. Assignor.  [The][Each] Assignor (a) represents and warrants that (i) it is the   legal and beneficial owner of [the][[the relevant] Assigned Interest, (ii) [the][such] Assigned   Interest is free and clear of any lien, encumbrance or other adverse claim, (iii) it has full power   and authority, and has taken all action necessary, to execute and deliver this Assignment and   Assumption and to consummate the transactions contemplated hereby and (iv) it is [not] a   Defaulting Lender; and (b) assumes no responsibility with respect to (i) any statements,   warranties or representations made in or in connection with the Credit Agreement or any other   Loan Document, (ii) the execution, legality, validity, enforceability, genuineness, sufficiency or   value of the Loan Documents or any collateral thereunder, (iii) the financial condition of the   Borrower, any of its Subsidiaries or Affiliates or any other Person obligated in respect of any   Loan Document or (iv) the performance or observance by the Borrower, any of its Subsidiaries   or Affiliates or any other Person of any of their respective obligations under any Loan   Document.   1.2. Assignee.  [The][Each] Assignee (a) represents and warrants that (i) it has full   power and authority, and has taken all action necessary, to execute and deliver this Assignment   and Assumption and to consummate the transactions contemplated hereby and to become a   Lender under the Credit Agreement, (ii) it meets all the requirements to be an assignee under   Section 11.06(b)(iii) and (v) of the Credit Agreement (subject to such consents, if any, as may be   required under Section 11.06(b)(iii) of the Credit Agreement), (iii) from and after the Effective   Date, it shall be bound by the provisions of the Credit Agreement as a Lender thereunder and, to   the extent of [the][the relevant] Assigned Interest, shall have the obligations of a Lender   thereunder, (iv) it is sophisticated with respect to decisions to acquire assets of the type   represented by [the][such] Assigned Interest and either it, or the Person exercising discretion in   making its decision to acquire [the][such] Assigned Interest, is experienced in acquiring assets of   such type, (v) it has received a copy of the Credit Agreement, and has received or has been   accorded the opportunity to receive copies of the most recent financial statements delivered   pursuant to Section 6.01 thereof, as applicable, and such other documents and information as it   deems appropriate to make its own credit analysis and decision to enter into this Assignment and   Assumption and to purchase [the][such] Assigned Interest, (vi) it has, independently and without   reliance upon the Administrative Agent or any other Lender and based on such documents and   information as it has deemed appropriate, made its own credit analysis and decision to enter into   this Assignment and Assumption and to purchase [the][such] Assigned Interest, and (vii) if it is a   Foreign Lender, attached hereto is any documentation required to be delivered by it pursuant to   the terms of the Credit Agreement, duly completed and executed by [the][such] Assignee; and   (b) agrees that (i) it will, independently and without reliance upon the Administrative Agent,   [the][any] Assignor or any other Lender, and based on such documents and information as it   shall deem appropriate at the time, continue to make its own credit decisions in taking or not     

 

D - 6   Form of Assignment and Assumption   49333216_3   taking action under the Loan Documents and (ii) it will perform in accordance with their terms   all of the obligations which by the terms of the Loan Documents are required to be performed by   it as a Lender.   2. Payments.  From and after the Effective Date, the Administrative Agent shall   make all payments in respect of [the][each] Assigned Interest (including payments of principal,   interest, fees and other amounts) to [the][the relevant] Assignor for amounts which have accrued   to but excluding the Effective Date and to [the][the relevant] Assignee for amounts which have   accrued from and after the Effective Date.  Notwithstanding the foregoing, the Administrative   Agent shall make all payments of interest, fees or other amounts paid or payable in kind from   and after the Effective Date to [the][the relevant] Assignee.   3. General Provisions.  This Assignment and Assumption shall be binding upon,   and inure to the benefit of, the parties hereto and their respective successors and assigns.  This   Assignment and Assumption may be executed in any number of counterparts, which together   shall constitute one instrument.  Delivery of an executed counterpart of a signature page of this   Assignment and Assumption by telecopy shall be effective as delivery of a manually executed   counterpart of this Assignment and Assumption.     4. GOVERNING LAW.  THIS ASSIGNMENT AND ASSUMPTION AND   THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE   GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE   WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICT   OF LAWS PRINCIPLES (OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE NEW   YORK GENERAL OBLIGATIONS LAW) THEREOF, EXCEPT AS GOVERNED BY THE   BANKRUPTCY CODE.     

 

E - 1   Form of Intercompany Subordination Agreement   49333216_3   EXHIBIT E         FORM OF INTERCOMPANY SUBORDINATION AGREEMENT         See attached.    

 

   F-1 - 1   Form of U.S. Tax Compliance Certificate   EXHIBIT F-1      FORM OF   U.S. TAX COMPLIANCE CERTIFICATE8   (For Non-U.S. Lenders That Are Not Partnerships For U.S. Federal Income Tax   Purposes)      Reference is hereby made to the Senior Secured Superpriority Debtor-in-   Possession Credit Agreement, dated as of July 27, 2015 (as amended, restated, extended,   supplemented or otherwise modified in writing from time to time, the “Credit Agreement;” the   terms defined therein being used herein as therein defined), among GT Advanced Technologies,   Inc., as debtor and debtor-in-possession (the “Borrower”), certain Subsidiaries of Borrower, each   as a debtor and debtor-in-possession, the Lenders from time to time party thereto, and Cantor   Fitzgerald Securities, as Administrative Agent and Collateral Agent     Pursuant to the provisions of Section 3.01(f) of the Credit Agreement, the   undersigned hereby certifies that (i) it is the sole record and beneficial owner of the Loan(s) (as   well as any Note(s) evidencing such Loan(s)) in respect of which it is providing this certificate,   (ii) it is not a bank within the meaning of Section 881(c)(3)(A) of the Code, (iii) it is not a ten   percent shareholder of the Borrower within the meaning of Section 871(h)(3)(B) of the Code,   (iv) it is not a controlled foreign corporation related to the Borrower as described in Section   881(c)(3)(C) of the Code, and (v) no payments in connection with any Loan Document are   effectively connected with a United States trade or business conducted by the undersigned.   The undersigned has furnished the Administrative Agent and the Borrower with a   certificate of its non-U.S. Person status on IRS Form W-8BEN or W-8BEN-E.  By executing this   certificate, the undersigned agrees that (1) if the information provided on this certificate changes,   the undersigned shall promptly so inform the Borrower and the Administrative Agent, and (2)   the undersigned shall have at all times furnished the Borrower and the Administrative Agent with   a properly completed and currently effective certificate in either the calendar year in which each   payment is to be made to the undersigned, or in either of the two calendar years preceding such   payments.    [NAME OF LENDER]      By:  _______________________     Name:  ________________    Title:  _________________            Date: ________ __, 20[  ]                                                      8 Certificates in Exhibit F are subject to further tax review.     

 

   F-2 - 1   Form of U.S. Tax Compliance Certificate   EXHIBIT F-2      FORM OF   U.S. TAX COMPLIANCE CERTIFICATE   (For Non-U.S. Participants That Are Not Partnerships For U.S. Federal Income Tax   Purposes)      Reference is hereby made to the Senior Secured Superpriority Debtor-in-   Possession Credit Agreement, dated as of July 27, 2015 (as amended, restated, extended,   supplemented or otherwise modified in writing from time to time, the “Credit Agreement;” the   terms defined therein being used herein as therein defined), among GT Advanced Technologies,   Inc., as debtor and debtor-in-possession (the “Borrower”), certain Subsidiaries of Borrower, each   as a debtor and debtor-in-possession, the Lenders from time to time party thereto, and Cantor   Fitzgerald Securities, as Administrative Agent and Collateral Agent     Pursuant to the provisions of Section 3.01(f) of the Credit Agreement, the   undersigned hereby certifies that (i) it is the sole record and beneficial owner of the participation   in respect of which it is providing this certificate, (ii) it is not a bank within the meaning of   Section 881(c)(3)(A) of the Code, (iii) it is not a ten percent shareholder of the Borrower within   the meaning of Section 871(h)(3)(B) of the Code, (iv) it is not a controlled foreign corporation   related to the Borrower as described in Section 881(c)(3)(C) of the Code, and (v) no payments in   connection with any Loan Document are effectively connected with a United States trade or   business conducted by the undersigned.   The undersigned has furnished its participating Lender with a certificate of its   non-U.S. Person status on IRS Form W-8BEN or W-8BEN-E.  By executing this certificate, the   undersigned agrees that (1) if the information provided on this certificate changes, the   undersigned shall promptly so inform such Lender in writing, and (2) the undersigned shall have   at all times furnished such Lender with a properly completed and currently effective certificate in   either the calendar year in which each payment is to be made to the undersigned, or in either of   the two calendar years preceding such payments.      [NAME OF PARTICIPANT]      By:  _______________________     Name:  ________________    Title:  _________________            Date: ________ __, 20[  ]     

 

   F-3 - 1   Form of U.S. Tax Compliance Certificate   49333216_3   EXHIBIT F-3   FORM OF    U.S. TAX COMPLIANCE CERTIFICATE   (For Non-U.S. Participants That Are Partnerships For U.S. Federal Income Tax Purposes)      Reference is hereby made to the Senior Secured Superpriority Debtor-in-   Possession Credit Agreement, dated as of July 27, 2015 (as amended, restated, extended,   supplemented or otherwise modified in writing from time to time, the “Credit Agreement;” the   terms defined therein being used herein as therein defined), among GT Advanced Technologies,   Inc., as debtor and debtor-in-possession (the “Borrower”), certain Subsidiaries of Borrower, each   as a debtor and debtor-in-possession, the Lenders from time to time party thereto, and Cantor   Fitzgerald Securities, as Administrative Agent and Collateral Agent     Pursuant to the provisions of Section 3.01(f) of the Credit Agreement, the   undersigned hereby certifies that (i) it is the sole record owner of the participation in respect of   which it is providing this certificate, (ii) its direct or indirect non-U.S. partners/non-U.S.   members (or non-U.S. owner for U.S. federal income tax purposes, as applicable) (each the   “Non-U.S. Partners”) are the sole beneficial owners of such participation, (iii) with respect such   participation, neither the undersigned nor any of its direct or indirect partners/members is a bank   extending credit pursuant to a loan agreement entered into in the ordinary course of its trade or   business within the meaning of Section 881(c)(3)(A) of the Code, (iv) none of its direct or   indirect Non-U.S. Partners is a ten percent shareholder of the Borrower within the meaning of   Section 871(h)(3)(B) of the Code, (v) none of its direct or indirect Non-U.S. Partners is a   controlled foreign corporation related to the Borrower as described in Section 881(c)(3)(C) of the   Code, and (vi) the interest payments in question are not effectively connected with the   undersigned’s or its direct or indirect Non-U.S. Partners conduct of a United States trade or   business.   The undersigned has furnished its participating Lender with IRS Form W-8IMY   accompanied by one of the following forms from each of its partners/members that is claiming   the portfolio interest exemption: (i) an IRS Form W-8BEN or W-8BEN-E or (ii) an IRS Form   W-8IMY accompanied by an IRS Form W-8BEN W-8BEN-E or from each of such   partner’s/member’s beneficial owners that is claiming the portfolio interest exemption.  By   executing this certificate, the undersigned agrees that (1) if the information provided on this   certificate changes, the undersigned shall promptly so inform such Lender and (2) the   undersigned shall have at all times furnished such Lender with a properly completed and   currently effective certificate in either the calendar year in which each payment is to be made to   the undersigned, or in either of the two calendar years preceding such payments.   [NAME OF PARTICIPANT]   By:  _______________________     Name:  ________________________    Title:  ________________________       Date: ________ __, 20[  ]     

 

   F-4 - 1   Form of U.S. Tax Compliance Certificate   49333216_3   EXHIBIT F-4   FORM OF U.S. TAX COMPLIANCE CERTIFICATE   (For Foreign Lenders That Are Partnerships For U.S. Federal Income Tax Purposes)      Reference is hereby made to the Senior Secured Superpriority Debtor-in-   Possession Credit Agreement, dated as of July 27, 2015 (as amended, restated, extended,   supplemented or otherwise modified in writing from time to time, the “Credit Agreement;” the   terms defined therein being used herein as therein defined), among GT Advanced Technologies,   Inc., as debtor and debtor-in-possession (the “Borrower”), certain Subsidiaries of Borrower, each   as a debtor and debtor-in-possession, the Lenders from time to time party thereto, and Cantor   Fitzgerald Securities, as Administrative Agent and Collateral Agent     Pursuant to the provisions of Section 3.01(f) of the Credit Agreement, the   undersigned hereby certifies that (i) it is the sole record owner of the Loan(s) (as well as any   Note(s) evidencing such Loan(s)) in respect of which it is providing this certificate, (ii) its direct   or indirect non-U.S. partners/non-U.S. members (or non-U.S. owner for U.S. federal income tax   purposes, as applicable) (each the “Non-U.S. Partners”) are the sole beneficial owners of such   Loan(s) (as well as any Note(s) evidencing such Loan(s)), (iii) with respect to the extension of   credit pursuant to this Credit Agreement or any other Loan Document, neither the undersigned   nor any of its direct or indirect Non-U.S. Partners is a bank extending credit pursuant to a loan   agreement entered into in the ordinary course of its trade or business within the meaning of   Section 881(c)(3)(A) of the Code, (iv) none of its direct or indirect Non-U.S. Partners is a ten   percent shareholder of the Borrower within the meaning of Section 871(h)(3)(B) of the Code,    (v) none of its direct or indirect Non-U.S. Partners is a controlled foreign corporation related to   the Borrower as described in Section 881(c)(3)(C) of the Code, and (vi) the interest payments in   question are not effectively connected with the undersigned’s or its direct or indirect Non-U.S.   Partners conduct of a United States trade or business.   The undersigned has furnished the Administrative Agent and the Borrower with   IRS Form W-8IMY accompanied by one of the following forms from each of its   partners/members that is claiming the portfolio interest exemption: (i) an IRS Form W-8BEN or   W-8BEN-E or (ii) an IRS Form W-8IMY accompanied by an IRS Form W-8BEN or W-8BEN-E   from each of such partner’s/member’s beneficial owners that is claiming the portfolio interest   exemption.  By executing this certificate, the undersigned agrees that (1) if the information   provided on this certificate changes, the undersigned shall promptly so inform the Borrower and   the Administrative Agent, and (2) the undersigned shall have at all times furnished the Borrower   and the Administrative Agent with a properly completed and currently effective certificate in   either the calendar year in which each payment is to be made to the undersigned, or in either of   the two calendar years preceding such payments.   [NAME OF LENDER]   By:  _______________________    Name:  ________________    Title:  _________________       Date: ________ __, 20[  ]     

 

   G - 1   Form of U.S. Security Agreement   49333216_3   EXHIBIT G      FORM OF U.S. SECURITY AGREEMENT         See attached.    

 

EXECUTION VERSION   49466791_7      U.S. SECURITY AGREEMENT      Dated July 27, 2015   among   GT ADVANCED TECHNOLOGIES INC.,   as Borrower,   CERTAIN OF ITS SUBSIDIARIES   as Guarantors,   and   CANTOR FITZGERALD SECURITIES   as Collateral Agent           

 

   49466791_7   T A B L E  O F  C O N T E N T S   Section Page   Section 1. Definitions; Interpretation. ...........................................................................................1   Section 2. Grant of Security ..........................................................................................................2   Section 3. Security for Obligations ...............................................................................................8   Section 4. Grantors Remain Liable ...............................................................................................8   Section 5. Delivery and Control of Security Collateral ................................................................9   Section 6. Maintaining the Account Collateral ...........................................................................10   Section 7. Representations and Warranties .................................................................................11   Section 8. Further Assurances .....................................................................................................16   Section 9. As to Equipment and Inventory .................................................................................17   Section 10. Insurance ..................................................................................................................18   Section 11. Post-Closing Changes; Collections on Assigned Agreements, Receivables and   Related Contracts ................................................................................................18   Section 12. As to Intellectual Property Collateral ......................................................................19   Section 13. Voting Rights; Dividends; Etc. ................................................................................21   Section 14. As to Letter-of-Credit Rights ...................................................................................22   Section 15. Commercial Tort Claims..........................................................................................23   Section 16. Transfers and Other Liens; Additional Shares .........................................................23   Section 17. Collateral Agent Appointed Attorney in Fact ..........................................................23   Section 18. Collateral Agent May Perform .................................................................................24   Section 19. The Collateral Agent’s Duties .................................................................................24   Section 20. Remedies ..................................................................................................................25   Section 21. Indemnity and Expenses ..........................................................................................27   Section 22. Amendments; Waivers; Additional Grantors; Etc. ..................................................27   Section 23. Notices, Etc. .............................................................................................................28   Section 24. Continuing Security Interest; Assignments under the Credit Agreement ................28     

 

49466791_7   Section 25. Release; Termination ...............................................................................................28   Section 26. Security Interest Absolute ........................................................................................29   Section 27. Execution in Counterparts ........................................................................................29   Section 28. Local Law Security Agreement ...............................................................................29   Section 29. Governing Law, Consent to Jurisdiction and Service of Process; Waiver of Jury   Trial .....................................................................................................................30   Schedules   Schedule I  Pledged Equity   Schedule II - Pledged Debt   Schedule III - Pledged Deposit Accounts   Schedule IV  Intellectual Property   Schedule V  Letters of Credit   Schedule VI  Commercial Tort Claims   Schedule VII  Grantors   Schedule VIII  Locations   Schedule IX  Investment Property      Exhibits   Exhibit A - Form of Intellectual Property Security Agreement   Exhibit B - Form of Intellectual Property Security Agreement Supplement   Exhibit C - Form of Security Agreement Supplement   Exhibit D - Form of Hong Kong Share Pledge Documents   Exhibit E - Form of Global Intercompany Note           

 

   1   49466791_7   U.S. SECURITY AGREEMENT   This U.S. SECURITY AGREEMENT (this “Agreement”), dated July 27, 2015   made by GT ADVANCED TECHNOLOGIES INC., a Delaware corporation (the “Borrower”)   and the other Persons listed on the signature pages hereof (together with the Borrower,   collectively, the “Grantors” and each a “Grantor”), to CANTOR FITZGERALD SECURITIES,   solely in its capacity as collateral agent (together with any successor collateral agent appointed   pursuant to Article IX of the Credit Agreement (as hereinafter defined), the “Collateral Agent”)   for the Secured Parties (as defined in the Credit Agreement).   PRELIMINARY STATEMENTS.   WHEREAS, on October 6, 2014, the Borrower and certain Subsidiaries of Borrower   (collectively, the “Debtors” and each individually, a “Debtor”) have commenced cases under   Chapter 11 of Title 11 of the Bankruptcy Code in the United States Bankruptcy Court for the   District of New Hampshire (the “Bankruptcy Court”), and the Debtors have retained possession   of their assets and are authorized under the Bankruptcy Code to continue the operations of their   businesses as debtors-in-possession;   WHEREAS, Grantors have entered into that certain Senior Secured Superpriority Debtor-   in-Possession Credit Agreement, dated as of the date hereof (as it may hereafter be amended,   amended and restated, supplemented or otherwise modified from time to time, being the “Credit   Agreement”) with each lender from time to time party thereto (collectively, the “Lenders” and   individually, a “Lender”), and CANTOR FITZGERALD SECURITIES, as Administrative   Agent and Collateral Agent.   WHEREAS, as of the Closing Date, each Grantor is the owner of (i) the shares of Equity   Interests (including Charged Hong Kong Shares) (the “Initial Pledged Equity”) set forth   opposite such Grantor’s name on and as otherwise described in Schedule I and issued by the   Persons named therein, (ii) the indebtedness (“Initial Pledged Debt”) set forth opposite such   Grantor’s name on and as otherwise described in Schedule II and issued by the obligors named   therein and (iii) the deposit accounts and securities accounts set forth opposite such Grantor’s   name on Schedule III.   WHEREAS, it is a condition precedent to the making of Loans by the Secured Parties   under the Credit Agreement that the Grantors shall have granted the security interest   contemplated by this Agreement.  Each Grantor will derive substantial direct and indirect benefit   from the transactions contemplated by the Loan Documents.   NOW, THEREFORE, in consideration of the premises and in order to induce the Secured   Parties to make Loans, each Grantor hereby agrees with the Collateral Agent for the ratable   benefit of the Secured Parties as follows:   Section 1. Definitions; Interpretation.   (a) Terms defined in the Credit Agreement and not otherwise defined in this   Agreement are used in this Agreement as defined in the Credit Agreement.  Further,   unless otherwise defined in this Agreement or in the Credit Agreement, terms defined in     

 

   2   49466791_7   Article 8 or 9 of the UCC (as defined below) are used in this Agreement as such terms are   defined in such Article 8 or 9 of the UCC.  “UCC” means the Uniform Commercial Code   as in effect from time to time in the State of New York; provided that, if perfection or the   effect of perfection or non perfection or the priority of the security interest in any   Collateral is governed by the Uniform Commercial Code as in effect in a jurisdiction   other than the State of New York, “UCC” means the Uniform Commercial Code as in   effect from time to time in such other jurisdiction for purposes of the provisions hereof   relating to such perfection, effect of perfection or non-perfection or priority.   (b) The rules of construction specified in Section 1.02 of the Credit Agreement   also apply to this Agreement, mutatis mutandis.  All references herein to Articles,   Sections, the introductory paragraph, recitals, Exhibits and Schedules shall be deemed   references to Articles, Sections, the introductory paragraph, recitals of, Exhibits and   Schedules to, this Agreement unless the context shall otherwise require.  If any conflict or   inconsistency exists between this Agreement and the Credit Agreement or the Final DIP   Order, the Credit Agreement or the Final DIP Order, as applicable, shall govern; provided,   that it is understood and agreed that the imposition of additional duties or obligations   under this Agreement shall not be deemed to be a conflict with the Credit Agreement.    Notwithstanding anything to the contrary in this Agreement or any other Loan Document,   the provisions of this Agreement shall be subject to the Final DIP Order in all respects.   Section 2. Grant of Security   (a) Each Grantor hereby grants to the Collateral Agent, for the ratable benefit of   the Secured Parties, to secure the payment and performance in full of all of the Secured   Obligations, a first priority security interest in such Grantor’s right, title and interest in   and to the following, in each case, as to each type of property described below, whether   now owned or hereafter acquired by such Grantor, wherever located, and whether now or   hereafter existing or arising (collectively, the “Collateral”):   (i) all equipment in all of its forms, including, without limitation, all   machinery, tools, motor vehicles, vessels, aircraft, furniture and fixtures, and all   parts thereof and all accessions thereto, including, without limitation, computer   programs and supporting information that constitute equipment within the   meaning of the UCC (any and all such property being the “Equipment”);   (ii) all inventory in all of its forms, including, without limitation, (i) all   raw materials, work in process, finished goods and materials used or consumed in   the manufacture, production, preparation or shipping thereof, (ii) goods in which   such Grantor has an interest in mass or a joint or other interest or right of any kind   (including, without limitation, goods in which such Grantor has an interest or   right as consignee) and (iii) goods that are returned to or repossessed or stopped in   transit by such Grantor, and all accessions thereto and products thereof and   documents therefor, including, without limitation, computer programs and   supporting information that constitute inventory within the meaning of the UCC   (any and all such property being the “Inventory”);     

 

   3   49466791_7   (iii) all accounts, chattel paper (including, without limitation, tangible   chattel paper and electronic chattel paper), instruments (including, without   limitation, promissory notes), deposit accounts, letter-of-credit rights, general   intangibles (including, without limitation, payment intangibles) and other   obligations of any kind, whether or not arising out of or in connection with the   sale or lease of goods or the rendering of services and whether or not earned by   performance, and all rights now or hereafter existing in and to all supporting   obligations and in and to all security agreements, mortgages, Liens, leases, letters   of credit and other contracts securing or otherwise relating to the foregoing   property (any and all of such accounts, chattel paper, instruments, deposit   accounts, letter-of-credit rights, general intangibles and other obligations, to the   extent not referred to in clause (d), (e) or (f) below, being the “Receivables,” and   any and all such supporting obligations, security agreements, mortgages, Liens,   leases, letters of credit and other contracts being the “Related Contracts”);   (iv) the following (the “Security Collateral”):   (A) the Initial Pledged Equity and the certificates, if any, representing the   Initial Pledged Equity, and all dividends, distributions, return of capital, cash,   instruments and other property from time to time received, receivable or   otherwise distributed in respect of or in exchange for any or all of the Initial   Pledged Equity and all warrants, rights or options issued thereon or with respect   thereto;   (B) the Initial Pledged Debt and the instruments, if any, evidencing the   Initial Pledged Debt, and all interest, cash, instruments and other property from   time to time received, receivable or otherwise distributed in respect of or in   exchange for any or all of the Initial Pledged Debt;   (C) all additional shares of stock and other Equity Interests from time to   time acquired by such Grantor in any manner (such shares and other Equity   Interests, together with the Initial Pledged Equity (other than Excluded Equity   Interests), being the “Pledged Equity”), and the certificates, if any, representing   such additional shares or other Equity Interests, and all dividends, distributions,   return of capital, cash, instruments and other property from time to time received,   receivable or otherwise distributed in respect of or in exchange for any or all of   such shares or other Equity Interests and all warrants, rights or options issued   thereon or with respect thereto;   (D) all additional indebtedness from time to time owed to such Grantor   (such indebtedness, together with the Initial Pledged Debt, being the “Pledged   Debt”) and the instruments, if any, evidencing such indebtedness (including the   Global Intercompany Note), and all interest, cash, instruments and other property   from time to time received, receivable or otherwise distributed in respect of or in   exchange for any or all of such indebtedness; and     

 

   4   49466791_7   (E) all other investment property (including, without limitation, all (A)   securities, whether certificated or uncertificated, (B) security entitlements, (C)   securities accounts, (D) commodity contracts and (E) commodity accounts) in   which such Grantor has now, or acquires from time to time hereafter, any right,   title or interest in any manner, and the certificates or instruments, if any,   representing or evidencing such investment property, and all dividends,   distributions, return of capital, interest, cash, instruments and other property from   time to time received, receivable or otherwise distributed in respect of or in   exchange for any or all of such investment property and all warrants, rights or   options issued thereon or with respect thereto (collectively, the “Investment   Property”);   (v) all contract rights and each Swap Contract to which such Grantor   is now or may hereafter become a party, in each case as such agreements may be   amended, amended and restated, supplemented or otherwise modified from time   to time (collectively, the “Assigned Agreements”), including, without limitation,   (i) all rights of such Grantor to receive moneys due and to become due under or   pursuant to the Assigned Agreements, (ii) all rights of such Grantor to receive   proceeds of any insurance, indemnity, warranty or guaranty with respect to the   Assigned Agreements, (iii) claims of such Grantor for damages arising out of or   for breach of or default under the Assigned Agreements and (iv) the right of such   Grantor to terminate the Assigned Agreements, to perform thereunder and to   compel performance and otherwise exercise all remedies thereunder (all such   Collateral being the “Agreement Collateral”);   (vi) the following (collectively, the “Account Collateral”):   (A) all deposit accounts, including, without limitation all deposit accounts   set forth on Schedule III hereto (the “Pledged Deposit Accounts”), and all funds   and financial assets from time to time credited thereto (including, without   limitation, all Cash Equivalents), and all certificates and instruments, if any, from   time to time representing or evidencing the Pledged Deposit Accounts;   (B) all promissory notes, certificates of deposit, checks and other   instruments from time to time delivered to or otherwise possessed by the   Collateral Agent for or on behalf of such Grantor in substitution for or in addition   to any or all of the then existing Account Collateral; and   (C) all interest, dividends, distributions, cash, instruments and other   property from time to time received, receivable or otherwise distributed in respect   of or in exchange for any or all of the then existing Account Collateral; and   (vii) the following (collectively, the “Intellectual Property Collateral”):   (A) all patents, patent applications, utility models and statutory invention   registrations, all inventions claimed or disclosed therein and all improvements   thereto (“Patents”);     

 

   5   49466791_7   (B) all trademarks, service marks, domain names, trade dress, logos,   designs, slogans, trade names, business names, corporate names and other source   identifiers, whether registered or unregistered (provided that no security interest   shall be granted in United States intent-to-use trademark applications to the extent   that, and solely during the period in which, the grant of a security interest therein   would impair the validity or enforceability of such intent-to-use trademark   applications under U.S. federal law), together, in each case, with the goodwill   symbolized thereby (“Trademarks”);   (C) all copyrights, including, without limitation, copyrights in Computer   Software (as hereinafter defined), internet web sites and the content thereof,   whether registered or unregistered (“Copyrights”);   (D) all computer software, programs and databases (including, without   limitation, source code, object code and all related applications and data files),   firmware and documentation and materials relating thereto, together with any and   all maintenance rights, service rights, programming rights, hosting rights, test   rights, improvement rights, renewal rights and indemnification rights and any   substitutions, replacements, improvements, error corrections, updates and new   versions of any of the foregoing (“Computer Software”);   (E) all confidential and proprietary information, including, without   limitation, know-how, trade secrets, manufacturing and production processes and   techniques, inventions, research and development information, databases and   data, including, without limitation, technical data, financial, marketing and   business data, pricing and cost information, business and marketing plans and   customer and supplier lists and information (collectively, “Trade Secrets”), and   all other intellectual, industrial and intangible property of any type, including,   without limitation, industrial designs and mask works;   (F) all registrations and applications for registration for any of the   foregoing, including, without limitation, those registrations and applications for   registration set forth in Schedule IV hereto, together with all reissues, divisions,   continuations, continuations-in-part, extensions, renewals and reexaminations   thereof;   (G) all tangible embodiments of the foregoing, all rights in the foregoing   provided by international treaties or conventions, all rights corresponding thereto   throughout the world and all other rights of any kind whatsoever of such Grantor   accruing thereunder or pertaining thereto;   (H) all agreements, permits, consents, orders and franchises relating to the   license, development, use or disclosure of any of the foregoing to which such   Grantor, now or hereafter, is a party or a beneficiary (“IP Agreements”); and   (I) any and all claims for damages and injunctive relief for past, present   and future infringement, dilution, misappropriation, violation, misuse or breach     

 

   6   49466791_7   with respect to any of the foregoing, with the right, but not the obligation, to sue   for and collect, or otherwise recover, such damages;   (viii) the commercial tort claims described in Schedule VI hereto   (together with any commercial tort claims as to which the Grantors have complied   with the requirements of Section 15, the “Commercial Tort Claims Collateral”);    (ix) all cash and Cash Equivalents;   (x) all books and records (including, without limitation, customer lists,   credit files, printouts and other computer output materials and records) of such   Grantor pertaining to any of the Collateral; and   (xi) all proceeds of, collateral for, income, royalties and other payments   now or hereafter due and payable with respect to, and supporting obligations   relating to, any and all of the Collateral (including, without limitation, proceeds,   collateral and supporting obligations that constitute property of the types   described in clauses i) through (x) of this Section 2) and, to the extent not   otherwise included, all (A) payments under insurance (whether or not the   Collateral Agent is the loss payee thereof), or any indemnity, warranty or   guaranty, payable by reason of loss or damage to or otherwise with respect to any   of the foregoing Collateral, and (B) cash.   (b) Notwithstanding the foregoing or anything to the contrary contained herein or   in any other Loan Document, Collateral shall not include Excluded Property.  As used   herein, Excluded Property means: (i) any voting Equity Interests in excess of 65% of the   voting Equity Interests in any Subsidiary of the Borrower that is a Foreign Subsidiary   (“Excluded Equity Interests”) (for the avoidance of doubt 65% of voting and 100% of   non-voting Equity Interests of each such Person shall be pledged); (ii) to the extent not   stayed by the Chapter 11 Cases, any lease, license, contract or agreement to which a   Grantor is a party or any of its rights or interests thereunder if, to the extent and for so   long as the grant of such security interest shall constitute or result in a breach of or a   default under, or to the extent otherwise prohibited or restricted thereby (including any   requirement to obtain the consent of any Governmental Authority or third party), or   creates an enforceable right of termination in favor of any party (other than any Loan   Party) to, such lease, license, contract or agreement (other than to the extent that any such   term would be rendered ineffective, or is otherwise unenforceable, pursuant to Sections   9-406, 9 407, 9-408 or 9-409 of the UCC (and/or other applicable law which may render   such restriction null and void and ineffective)); provided that, to the extent severable, the   security interest granted hereunder shall attach immediately to any portion of such lease,   license, contract or agreement that does not result in any such breach, restriction,   termination or default, including any proceeds of such lease, license, contract or   agreement; (iii) any governmental licenses or state or local franchises, charters and   authorizations, to the extent security interests in such licenses, franchises, charters or   authorizations are prohibited or restricted thereby (other than to the extent that any such   term would be rendered ineffective, or is otherwise unenforceable, pursuant to Sections   9-406, 9 407, 9-408 or 9-409 of the UCC (and/or other applicable law which may render     

 

   7   49466791_7   such restriction null and void and ineffective)); (iv) any asset owned by any Grantor that   is subject to a Lien of the type permitted by Sections 7.01(h), (l) and (s) of the Credit   Agreement, to the extent and for so long as the grant of a Lien thereon hereunder to   secure the Secured Obligations constitutes a breach of or a default under, or to the extent   otherwise prohibited or restricted thereby (including any requirement to obtain the   consent of any governmental authority or third party), or creates a right of termination in   favor of any party (other than any Loan Party) to, any agreement pursuant to which such   Lien has been created; provided that the Security Interest shall attach immediately to any   such asset (x) at the time the provision of such agreement containing such restriction   ceases to be in effect and (y) to the extent any such breach, restriction or default is not   rendered ineffective by, or is otherwise unenforceable pursuant to the UCC or any other   applicable Law; (v) any asset owned by any Grantor if, to the extent and for so long as   the grant of such security interest in such asset shall be prohibited by any applicable Law   or to the extent otherwise restricted thereby (including any requirement to obtain the   consent of any governmental authority other than any filings, recordings or registrations   in order to perfect such security interest) (other than to the extent that any such   prohibition or restriction would be rendered ineffective pursuant to the UCC or any other   applicable Law); provided that the security interest shall attach immediately to such asset   at such time as such prohibition or restriction ceases to be in effect; provided that   proceeds and receivables of Excluded Property shall be deemed Collateral and the   assignment of proceeds and receivables of Excluded Property shall be expressly deemed   effective, in each case, as provided under the UCC, notwithstanding the foregoing. The   Collateral Agent may choose not to undertake one or more steps to perfect the grant of a   security interest in any asset with respect to which the Collateral Agent determines in   consultation with the Borrower that the cost, burden or other consequences (including   adverse tax consequences) of perfecting a security interest is excessive in relation to the   practical benefit afforded thereby to the Secured Parties.   (c) The Liens and security interests in favor of Collateral Agent granted pursuant   to Section 2(a) hereof may be independently granted by the Loan Documents and by   other Loan Documents hereafter entered into.  This Agreement, the Final DIP Order and   such other Loan Documents supplement each other and the grants, priorities, rights and   remedies of the Agent and the Lenders hereunder and thereunder are cumulative.     (d) The Liens and security interests referred herein shall be deemed valid and   perfected by entry of the Final DIP Order.  The Collateral Agent shall not be required to   file any financing statements, notices of Lien or similar instruments in any jurisdiction or   filing office or to take any other action in order to validate or perfect the Lien and   security interests granted by or pursuant to this Agreement or the Final DIP Order or any   other Loan Document and it is agreed that no intellectual property security agreements   will be filed against any Intellectual Property Collateral owned by GTAT IP HOLDING   LLC in the United States Patent and Trademark Office or the United States Copyright   Office.    (e) The Liens, lien priority and other rights and remedies granted to the Collateral   Agent and the Lenders pursuant to this Agreement, the Final DIP Order and the other   Loan Documents (specifically including, but not limited to, the existence, perfection,     

 

   8   49466791_7   priority of the Liens and security interests provided herein and therein) shall not be   modified, altered or impaired in any manner by any other financing or extension of credit   or incurrence of Indebtedness by any Loan Party (pursuant to Section 364 of the   Bankruptcy Code or otherwise), or by any dismissal or conversion of any of the Chapter   11 Cases or by any other act or omission whatsoever.  Without limitation,   notwithstanding any such order, financing, extension, incurrence, dismissal, conversion   act or omission:   (i) Except for the Carve-Out, to the extent set forth in the Final DIP   Order, no costs or expenses of administration which have been or may be incurred   in the Chapter 11 Cases or any conversion of the same or in any other proceeding   related thereto, and no priority claims, are or will be prior to or on parity with any   claim of the Agent and the Lenders against any Loan Party in respect of any   Obligation;   (ii) The Liens in favor of the Collateral Agent and the Lenders set   forth in Section 2(a) hereof shall constitute valid and perfected first priority Liens   and security interests, subject only to Permitted Liens to which such Liens and   security interests may be subordinate and junior, and shall be prior to all other   Liens and security interests now existing or hereafter arising, in favor of any other   creditor or any other Person whatsoever; and   (iii) The Liens in favor of the Collateral Agent and the Lenders set   forth herein and in the other Loan Documents shall constitute to be valid and   perfected without the necessity that the Collateral Agent file financing statements,   mortgages or otherwise perfect its Liens under applicable non-bankruptcy law.   Section 3. Security for Obligations   This Agreement secures, in the case of each Grantor, the payment of all   Obligations of such Grantor now or hereafter existing under the Credit Agreement and the other   Loan Documents, whether direct or indirect, absolute or contingent, and whether for principal,   reimbursement obligations, interest, fees, premiums, penalties, indemnifications, contract causes   of action, costs, expenses or otherwise (all such Obligations being the “Secured Obligations”).    Without limiting the generality of the foregoing, this Agreement secures, as to each Grantor, the   payment of all amounts that constitute part of the Secured Obligations and would be owed by   such Grantor to any Secured Party under the Loan Documents but for the fact that they are   unenforceable or not allowable due to the existence of a bankruptcy, reorganization or similar   proceeding involving a Loan Party.   Section 4. Grantors Remain Liable   Anything herein to the contrary notwithstanding, (a) each Grantor shall remain   liable under the contracts and agreements included in such Grantor’s Collateral to the extent set   forth therein to perform all of its duties and obligations thereunder to the same extent as if this   Agreement had not been executed, (b) the exercise by the Collateral Agent of any of the rights   hereunder shall not release any Grantor from any of its duties or obligations under the contracts     

 

   9   49466791_7   and agreements included in the Collateral and (c) no Secured Party shall have any obligation or   liability under the contracts and agreements included in the Collateral by reason of this   Agreement or any other Loan Document, nor shall any Secured Party be obligated to perform   any of the obligations or duties of any Grantor thereunder or to take any action to collect or   enforce any claim for payment assigned hereunder.   Section 5. Delivery and Control of Security Collateral   (a) All certificates or instruments representing or evidencing Security Collateral   shall be delivered to and held by or on behalf of the Collateral Agent pursuant hereto and   shall be in suitable form for transfer by delivery, or shall be accompanied by duly   executed instruments of transfer or assignment in blank, all in form reasonably   satisfactory to the Collateral Agent; provided that no Grantor shall be required to deliver   instruments representing or evidencing Pledged Debt if the amount of such Pledged Debt   is $500,000 or less.  With respect to the Charged Hong Kong Shares, the Collateral Agent   shall have received each Hong Kong Share Pledge Document in the form annexed hereto   as Exhibit D.  Upon the occurrence and during the continuance of an Event of Default,   the Collateral Agent shall have the right at any time to exchange certificates or   instruments representing or evidencing Security Collateral for certificates or instruments   of smaller or larger denominations.   (b) Promptly upon the request of the Collateral Agent with respect to any Security   Collateral that constitutes an uncertificated security, the relevant Grantor will cause any   issuer thereof that is a Subsidiary of Borrower or, in the case of any issuer thereof that is   not a Subsidiary of Borrower, will use commercially reasonably efforts to cause such   issuer either (i) to register the Collateral Agent as the registered owner of such security or   (ii) to agree with such Grantor and the Collateral Agent that such issuer will comply with   instructions with respect to such security originated by the Collateral Agent without   further consent of such Grantor, such agreement to be in form reasonably satisfactory to   the Collateral Agent (such agreement being an “Uncertificated Security Control   Agreement”).   (c) With respect to any Security Collateral that constitutes a security entitlement   as to which the financial institution acting as Collateral Agent hereunder is not the   securities intermediary, the relevant Grantor will cause the securities intermediary with   respect to such security entitlement either (i) to identify in its records the Collateral Agent   as the entitlement holder thereof or (ii) to agree with such Grantor and the Collateral   Agent that such securities intermediary will comply with entitlement orders originated by   the Collateral Agent without further consent of such Grantor, such agreement to be in   form reasonably satisfactory to the Collateral Agent (a “Securities Account Control   Agreement”); provided, however, that this Section 5(c) shall not apply to Excluded   Securities Accounts; provided, further, however, all Excluded Securities Accounts and   proceeds thereof shall at all times constitute Collateral.  Excluded Securities Accounts   mean, collectively, one or more securities accounts holding assets or property, so long as   the Grantors are in compliance with the minimum cash requirement set forth in Section   7.11 of the Credit Agreement and the maximum cash requirement set forth in Section   7.17(e) of the Credit Agreement.     

 

   10   49466791_7   (d) At any time when an Event of Default shall have occurred and be continuing   or as otherwise provided in the Credit Agreement or any other Loan Document with   respect to issuers organized outside of the United States, for the better perfection of the   Collateral Agent’s rights in and to the Security Collateral, each Grantor shall promptly,   upon the request of the Collateral Agent, cause such Security Collateral to be registered   (in the case of any issuer thereof that is a Subsidiary of Borrower) or, in the case of any   issuer thereof that is not a Subsidiary of Borrower, will use commercially reasonably   efforts to cause such Security Collateral to be registered in the name of the Collateral   Agent or such of its nominees as the Collateral Agent shall direct, subject only to the   revocable rights specified in Section 13, except that with respect to the Charged Hong   Kong Shares, the Collateral Agent shall receive each Hong Kong Share Pledge Document   whether or not a Default or an Event of Default shall have occurred.   (e) At any time when an Event of Default shall have occurred and be continuing,   upon the request of the Collateral Agent, each Grantor will notify each issuer of Security   Collateral granted by it hereunder that such Security Collateral is subject to the security   interest granted hereunder.   Section 6. Maintaining the Account Collateral   So long as any Lender shall have any Commitment or Loans under the Credit Agreement   or other Obligation (other than contingent indemnification obligations for which no claim has   been made) under any Loan Document shall remain unpaid or unsatisfied:   (a) Each Grantor will maintain deposit accounts only with the financial institution   acting as Collateral Agent hereunder or with a bank (a “Pledged Account Bank”) that has   agreed with such Grantor and the Collateral Agent to comply with instructions originated   by the Collateral Agent directing the disposition of funds in such deposit account without   the further consent of such Grantor, such agreement to be in form reasonably satisfactory   to the Collateral Agent (a “Deposit Account Control Agreement”); provided, however,   that this Section 6(a) shall not apply to Excluded Deposit Accounts; provided, further,   however, all Excluded Deposited Accounts included within clause (i) of the definition   thereof and proceeds thereof shall at all times constitute Collateral.  Excluded Deposit   Accounts mean, collectively, one or deposit accounts, so long as the Grantors are in   compliance with the minimum cash requirement set forth in Section 7.11 of the Credit   Agreement and the maximum cash requirement set forth in Section 7.17(e) of the Credit   Agreement.   (b) Upon any termination by a Grantor of any Pledged Deposit Account, such   Grantor will promptly transfer all funds and property held in such terminated Pledged   Deposit Account to another Pledged Deposit Account.   (c) The Collateral Agent may in accordance with the terms of, and subject to, the   Credit Agreement (including Article VIII thereof) and each Deposit Account Control   Agreement, at any time when an Event of Default shall have occurred and be continuing   and without notice to, or consent from, the Grantor, transfer, or direct the transfer of,     

 

   11   49466791_7   funds from the Pledged Deposit Accounts to satisfy any and all Obligations under the   Loan Documents.   Section 7. Representations and Warranties   Each Grantor represents and warrants as follows:   (a) Such Grantor’s exact legal name, chief executive office, type of organization,   jurisdiction of organization and organizational identification number (if any) is set forth   in Schedules VII of this Agreement and, in each case, as supplemented by each Security   Agreement Supplement delivered from time to time.  As of the Closing Date and as of the   date of each Security Agreement Supplement, such Grantor has used no trade names in   the past five years other than as listed in Schedule VII of this Agreement.  Within the five   years preceding the Closing Date and as of the date of each Security Agreement   Supplement, such Grantor has not changed its name, chief executive office, type of   organization, jurisdiction of organization or organizational identification number from   those set forth in the Schedule VII of this Agreement.   (b) Such Grantor is the legal and beneficial owner of the Collateral granted or   purported to be granted by it free and clear of any Lien, claim, option or right of others,   except for the security interest created under this Agreement or the Final DIP Order and   Permitted Liens.  No effective financing statement or other instrument similar in effect   covering all or any part of such Collateral or listing such Grantor or any trade name of   such Grantor as debtor is on file in any recording office, except such as may have been   filed in favor of the Collateral Agent relating to the Loan Documents or as otherwise   permitted in the Credit Agreement.   (c) All of the Equipment and Inventory of such Grantor is located at the places   specified therefor in Schedule VIII of this Agreement and, in each case, as supplemented   by each Security Agreement Supplement or at another location as to which such Grantor   has complied with the requirements of Section 9(a), other than (w) property in transit   between such locations, (x) property at a customer location, (y) property out for repair or   refurbishment and (z) other property with an aggregate fair market value of less than   $1,000,000 for all Grantors (for each location).  Such Grantor has exclusive possession   and control of its Equipment and Inventory, other than with respect to Inventory or   Equipment (i) that is stored at any leased premises or warehouse, (ii) that is in transit, (iii)   that is at a customer location, (iv) that is out for repair or refurbishment or (v) with an   aggregate fair market value of less than $1,000,000 for all Grantors.   (d) None of the Receivables or Agreement Collateral is evidenced by a   promissory note or other Instrument in excess of $250,000 that has not been delivered to   the Collateral Agent to the extent required by Section 5(a).     (e) If such Grantor is an issuer of Security Collateral, such Grantor confirms that   it has received notice of the security interest granted hereunder to the extent required by   Section 5(e).      

 

   12   49466791_7   (f) The Pledged Equity (to the extent such Pledged Equity has been issued by   another Grantor, Subsidiary of Borrower or a joint venture interest of Borrower or any of   its Subsidiaries) pledged by such Grantor hereunder has been duly authorized and validly   issued and is fully paid and non assessable.  The Pledged Debt (to the extent such   Pledged Debt has been issued by another Grantor, Subsidiary of Borrower or a joint   venture interest of Borrower or any of its Subsidiaries) pledged by such Grantor   hereunder has been duly authorized, authenticated or issued and (to the extent required by   Section 5(a)) delivered, is the legal, valid and binding obligation of the issuers thereof, is   evidenced by one or more promissory notes (which promissory notes have been delivered   to the Collateral Agent to the extent required by Section 5(a)).  As to all Pledged Equity   comprising of limited liability company or partnership interests, each Grantor hereby   covenants that such Pledged Equity (i) are not and shall not be dealt in or traded on   securities exchanges or in securities markets, (ii) do not and will not constitute   investment company securities, and (iii) are not and will not be held by such Grantor in a   securities account.  In addition, none of the organization documents related to the   Pledged Equity comprising of limited liability company or partnership interests provide   or shall provide that such Pledged Equity are securities governed by Article 8 of the   Uniform Commercial Code as in effect in any relevant jurisdiction.   (g) The Initial Pledged Equity pledged by such Grantor constitutes the percentage   of the issued and outstanding Equity Interests of the issuers thereof indicated on Schedule   I hereto.  The Pledged Equity (other than the Initial Pledged Equity) pledged by such   Grantor constitutes the percentage of the issued and outstanding Equity Interests of the   issuers thereof indicated on Schedule I hereto as supplemented, from time to time,   including after the grant of any pledge in accordance with Section 6.14 of the Credit   Agreement.  The Initial Pledged Debt constitutes all of the outstanding indebtedness   owed to such Grantor by the issuers thereof and is outstanding in the principal amount   indicated on Schedule II hereto.  As of the Closing Date, the Pledged Debt (other than the   Initial Pledged Debt) constitutes all of the outstanding indebtedness owed to such Grantor   by the issuers thereof and is outstanding in the principal amount indicated on Schedule II   hereto as supplemented, from time to time, by each Security Agreement Supplement.   (h) Such Grantor has no Investment Property, other than the Investment Property   listed on Schedule I, Schedule II and Schedule III hereto and additional Investment   Property as to which such Grantor has complied, if required, with the requirements of   Section 5.    (i) Such Grantor has no deposit accounts, other than the Pledged Deposit   Accounts listed on Schedule III hereto and additional Pledged Deposit Accounts as to   which such Grantor has complied, if required, with the applicable requirements of   Section 5.   (j) Such Grantor is not a beneficiary or assignee under any letter of credit, other   than the letters of credit described in Schedule V hereto and additional letters of credit as   to which such Grantor has, if required, complied with the requirements of Section 14.     

 

   13   49466791_7   (k) This Agreement creates in favor of the Collateral Agent for the benefit of the   Secured Parties a valid security interest in the Collateral granted by such Grantor,   securing the payment of the Secured Obligations.  Subject to Section 2(d), all filings   including, without limitation, filings and registrations necessary to perfect the Lien on the   Collateral to the extent that such Liens can be perfected under UCC filing statutes and,   with respect to all Intellectual Property Collateral in existence on the Closing Date,   filings in the United States Patent and Trademark Office and the United States Copyright   Office have been duly made or taken and are in full force and effect or the requisite UCC   financing statements and Intellectual Property Security Agreements have been delivered   to the Collateral Agent in appropriate form for filing, and upon filing by Grantors or their   designee, will be in full force and effect; and such security interest is first priority (except   with respect to Collateral that is subject to Liens permitted under Section 7.01(h) and (l)   of the Credit Agreement) and with respect to any Intellectual Property Collateral (other   than Intellectual Property Collateral owned by GTAT IP HOLDING LLC) that is   acquired or comes into existence after the Closing Date, Intellectual Property Security   Agreement Supplement(s) shall have been delivered to the Collateral Agent in   appropriate form for filing in the United States Patent and Trademark Office and the   United States Copyright Office, and upon filing, will be in full force and effect and such   security interest is first priority.  Except for the security interest created hereby, each   Grantor is and will at all times be the sole holder of record and legal and beneficial   owner, free and clear of all Liens, of the Security Collateral and the Account Collateral   (other than Excluded Securities Accounts and Excluded Deposit Accounts).  Subject to   Section 2(d), all actions necessary to perfect a first priority security interest in the   Security Collateral and the Account Collateral have been or will be duly taken upon the   execution and delivery of this Agreement, upon taking of possession by Collateral Agent   of any certificates or notes constituting Security Collateral, upon the filing of UCC   financing statements in the applicable jurisdiction with respect to Security Collateral that   is not represented by certificates or notes and, with respect to Account Collateral, upon   delivery of control agreements.   (l) No authorization or approval or other action by, and no notice to or filing with,   any governmental authority or regulatory body or any other third party is required for (i)   the grant by such Grantor of the security interest granted hereunder or for the execution,   delivery or performance of this Agreement by such Grantor, (ii) subject to Section 2(d),   the perfection (to the extent required hereunder) or maintenance of the security interest   created hereunder (including the first priority nature of such security interest), except for   the filing of financing and continuation statements under the UCC, which financing   statements have been duly filed and are in full force and effect or which financing   statements have been delivered to the Collateral Agent in appropriate form for filing, and   upon filing by the Grantors or their designee, will be in full force and effect, the   recordation of the Intellectual Property Security Agreements referred to in Section 12(f)   with the U.S. Patent and Trademark Office and the U.S. Copyright Office, which   agreements have been duly recorded and are in full force and effect, or which agreements   have been delivered to the Collateral Agent in appropriate form for recording, and upon   recording by the Grantors or their designee, will be in full force and effect, and the   actions described in Section 5 with respect to the Security Collateral, which actions have   been taken and are in full force and effect, or (iii) the exercise by the Collateral Agent of     

 

   14   49466791_7   its voting or other rights provided for in this Agreement or the remedies in respect of the   Collateral pursuant to this Agreement, except as may be required in connection with the   disposition of any portion of the Security Collateral by laws affecting the offering and   sale of securities generally, and except, in each case, as could not reasonably be expected   to have a Material Adverse Effect.   (m) Except as could not reasonably be expected to have a Material Adverse   Effect, the Inventory that has been produced by such Grantor has been produced in   compliance with all applicable requirements of Law, including the Fair Labor Standards   Act, as amended.   (n) As to itself and its Intellectual Property Collateral:   (i) The operation of such Grantor’s business as currently conducted or   as contemplated to be conducted and, to the best of such Grantor’s knowledge, the   use of the Intellectual Property Collateral in connection therewith do not conflict   with, infringe, misappropriate, dilute, misuse or otherwise violate the intellectual   property rights of any third party, except as could not be reasonably expected to   be material to the business of Borrower and its Subsidiaries taken as a whole.   (ii) Such Grantor is the exclusive owner of all right, title and interest in   and to the Intellectual Property Collateral, and is entitled to use all Intellectual   Property Collateral subject only to the terms of the IP Agreements, except as   could not be reasonably expected to be material to the business of Borrower and   its Subsidiaries taken as a whole.    (iii) As of the Closing Date, the Intellectual Property Collateral set   forth on Schedule IV includes all registered: (A) patents and patent applications of   each Grantor; (B) trademarks, service marks, brand names and trade dress of each   Grantor; (C) trade names, business names and corporate names of each Grantor;   and (D) copyrights, including, without limitation, registered copyrights in   computer software, Internet domain names, internet web sites and the content   thereof of each Grantor owned by such Grantor as of the Closing Date.   (iv) The Intellectual Property Collateral is subsisting and has not been   adjudged invalid or unenforceable in whole or part, and, to the best of such   Grantor’s knowledge, is valid and enforceable, except as could not be reasonably   expected to be material to the business of Borrower and its Subsidiaries taken as a   whole.  Such Grantor is not aware of any uses of any item of Intellectual Property   Collateral that could be expected to lead to such item becoming invalid or   unenforceable, except as could not be reasonably expected to be material to the   business of Borrower and its Subsidiaries taken as a whole.   (v) Such Grantor has made or performed all filings, recordings and   other acts and has paid all required fees and taxes to maintain and protect its   interest in each and every item of Intellectual Property Collateral in full force and   effect, and to protect and maintain its interest therein including, without     

 

   15   49466791_7   limitation, recordations of any of its interests in the Patents and Trademarks with   the U.S. Patent and Trademark Office and in corresponding national and   international patent and trademark offices, and recordation of any of its interests   in the Copyrights with the U.S. Copyright Office and in corresponding national   and international copyright offices, except as could not be reasonably expected to   be material to the business of Borrower and its Subsidiaries taken as a whole.   (vi) No claim, action, suit, investigation, litigation or proceeding is   pending or (to the knowledge of such Grantor) threatened against such Grantor (i)   based upon or challenging or seeking to deny or restrict the Grantor’s rights in or   use of any of the Intellectual Property Collateral, (ii) alleging that the Grantor’s   rights in or use of the Intellectual Property Collateral or that any services provided   by, processes used by, or products manufactured or sold by, such Grantor   infringe, misappropriate, dilute, misuse or otherwise violate any patent,   trademark, copyright or any other proprietary right of any third party, or (iii)   alleging that the Intellectual Property Collateral is being licensed or sublicensed   in violation or contravention of the terms of any license or other agreement,   except, in each case, as could not be reasonably expected to be material to the   business of Borrower and its Subsidiaries taken as a whole.  To the knowledge of   the Grantor, no Person is engaging in any activity that infringes, misappropriates,   dilutes, misuses or otherwise violates the Intellectual Property Collateral or the   Grantor’s rights in or use thereof, except as could not be reasonably expected to   be material to the business of Borrower and its Subsidiaries taken as a whole.    Such Grantor has not granted any license, release, covenant not to sue, non-   assertion assurance, or other right to any Person with respect to any part of the   Intellectual Property Collateral, except as could not be reasonably expected to be   material and adverse to the business of Borrower and its Subsidiaries taken as a   whole.  The consummation of the transactions contemplated by the Loan   Documents will not result in the termination or impairment of any of the   Intellectual Property Collateral, except as could not be reasonably expected to be   material to the business of Borrower and its Subsidiaries taken as a whole.   (vii) With respect to each IP Agreement, except, in each case, as could   not be reasonably expected to be material and adverse to the business of Borrower   and its Subsidiaries taken as a whole: (A) such IP Agreement is valid and binding   and in full force and effect and represents the entire agreement between the   respective parties thereto with respect to the subject matter thereof; (B) such IP   Agreement will not cease to be valid and binding and in full force and effect on   terms identical to those currently in effect as a result of the rights and interest   granted herein, nor will the grant of such rights and interest constitute a breach or   default under such IP Agreement or otherwise give any party thereto a right to   terminate such IP Agreement; (C) such Grantor has not received any notice of   termination or cancellation under such IP Agreement; (D) such Grantor has not   received any notice of a breach or default under such IP Agreement, which breach   or default has not been cured; (E) such Grantor has not granted to any other third   party any rights, adverse or otherwise, under such IP Agreement; and (F) neither   such Grantor nor, to the best knowledge of such Grantor, any other non-Affiliate     

 

   16   49466791_7   party to such IP Agreement is in breach or default thereof, and no event has   occurred that, with notice or lapse of time or both, would constitute such a breach   or default or permit termination, modification or acceleration under such IP   Agreement.   (viii) Except as could not be reasonably expected to be material to the   business of Borrower and its Subsidiaries taken as a whole, to the best of such   Grantor’s knowledge, (A) none of the Trade Secrets of such Grantor has been   used, divulged, disclosed or appropriated to the detriment of such Grantor for the   benefit of any other Person other than such Grantor; (B) no employee,   independent contractor or agent of such Grantor has misappropriated any trade   secrets of any other Person in the course of the performance of his or her duties as   an employee, independent contractor or agent of such Grantor; and (C) no   employee, independent contractor or agent of such Grantor is in default or breach   of any term of any employment agreement, non-disclosure agreement, assignment   of inventions agreement or similar agreement or contract relating in any way to   the protection, ownership, development, use or transfer of such Grantor’s   Intellectual Property Collateral.   (ix) No Grantor or Intellectual Property Collateral is subject to any   outstanding consent, settlement, decree, order, injunction, judgment or ruling   restricting the use of any Intellectual Property Collateral or that would impair the   validity or enforceability of such Intellectual Property Collateral, except as could   not be reasonably expected to be material to the business of Borrower and its   Subsidiaries taken as a whole.   (o) Such Grantor has no commercial tort claims in excess of $500,000 other than   those listed in Schedule VI hereto and additional commercial tort claims as to which such   Grantor has complied with the requirements of Section 15.   Section 8. Further Assurances   (a) Each Grantor agrees that from time to time, at the expense of such Grantor,   such Grantor will promptly execute and deliver, or otherwise authenticate, all further   instruments and documents, and take all further action that is necessary or that the   Collateral Agent may reasonably require, in order to perfect and protect any pledge or   security interest granted or purported to be granted by such Grantor hereunder or, to the   extent permitted by applicable law, to enable the Collateral Agent to exercise and enforce   its rights and remedies granted or purported to be granted hereunder or under any other   Loan Document with respect to any Collateral of such Grantor.  Without limiting the   generality of the foregoing, each Grantor will promptly upon the request of the   Administrative Agent with respect to Collateral of such Grantor:  (i) upon the occurrence   and during the continuance of an Event of Default, mark conspicuously each document   included in Inventory, each chattel paper included in Receivables, each Related Contract,   each Assigned Agreement and, at the request of the Collateral Agent, each of its records   pertaining to such Collateral with a legend, in form reasonably satisfactory to the   Collateral Agent, indicating that such document, chattel paper, Related Contract,     

 

   17   49466791_7   Assigned Agreement or Collateral is subject to the security interest granted hereby; (ii) if   any such Collateral shall be evidenced by a promissory note or other instrument or chattel   paper, deliver and pledge to the Collateral Agent hereunder such note or instrument or   chattel paper duly indorsed and accompanied by duly executed instruments of transfer or   assignment, all in form reasonably satisfactory to the Collateral Agent; (iii) file such   financing or continuation statements, or amendments thereto, and such other instruments   or notices, as may be necessary or desirable, or as the Collateral Agent may reasonably   request, in order to perfect and preserve the security interest granted or purported to be   granted by such Grantor hereunder; and (iv) deliver to the Collateral Agent evidence that   all other actions that the Collateral Agent may deem reasonably necessary or desirable in   order to perfect and protect the security interest granted or purported to be granted by   such Grantor under this Agreement has been taken.   (b) Each Grantor hereby authorizes the Collateral Agent to file (but the Collateral   Agent shall have no duty to so file) one or more financing or continuation statements, and   amendments thereto, including, without limitation, one or more financing statements   indicating that such financing statements cover all assets or all personal property (or   words of similar effect) of such Grantor, regardless of whether any particular asset   described in such financing statements falls within the scope of the UCC or the granting   clause of this Agreement.  A photocopy or other reproduction of this Agreement shall be   sufficient as a financing statement where permitted by law.  Each Grantor ratifies its   authorization for the Collateral Agent to have filed such financing statements,   continuation statements or amendments filed prior to the date hereof.   (c) Each Grantor will furnish to the Collateral Agent a Security Agreement   Supplement together with the delivery of the annual report pursuant to Section 6.01(a) of   the Credit Agreement and such other reports in connection with such Collateral as the   Collateral Agent may from time to time reasonably request, all in reasonable detail.   Section 9. As to Equipment and Inventory   (a) Each Grantor will keep its Equipment and Inventory (other than (v) Inventory   sold in the ordinary course of business, (w) property in transit between such locations, (x)   property at a customer location, (y) property out for repair or refurbishment and (z) other   property with an aggregate fair market value of less than $500,000 for all Grantors (for   each location)) at the places therefor specified in Section 7(c) or at such other places   designated by such Grantor from time to time in each Security Agreement Supplement   delivered from time to time.   (b) Except as could not be reasonably expected to have a Material Adverse Effect,   each Grantor will pay promptly when due all property and other taxes, assessments and   governmental charges or levies imposed upon, and all claims (including, without   limitation, claims for labor, materials and supplies) against, its Equipment and Inventory.    Except where the failure to do so could not reasonably be expected to have a Material   Adverse Effect, in producing its Inventory, each Grantor will comply with all   requirements of applicable law, including, without limitation, the Fair Labor Standards   Act.     

 

   18   49466791_7   Section 10. Insurance   (a) Each Grantor will maintain insurance in accordance with Section 6.07 of the   Credit Agreement.  Each policy of each Grantor for liability insurance shall provide for   all losses to be paid on behalf of the Collateral Agent and such Grantor as their interests   may appear, and each policy for property damage insurance shall provide for all losses to   be paid directly to the Collateral Agent following the occurrence and during the   continuance of an Event of Default.  Each such policy shall in addition (i) name such   Grantor and the Collateral Agent as insured parties thereunder (without any   representation or warranty by or obligation upon the Collateral Agent) as their interests   may appear, (ii) other than proceeds of business interruption insurance to the extent such   proceeds constitute compensation for lost earnings, contain the agreement by the insurer   that any loss thereunder shall be payable to the Collateral Agent following the occurrence   and during the continuance of an Event of Default notwithstanding any action, inaction or   breach of representation or warranty by such Grantor and (iii) provide that there shall be   no recourse against the Collateral Agent for payment of premiums or other amounts with   respect thereto.  Each Grantor will, if so requested by the Collateral Agent, deliver to the   Collateral Agent original or duplicate policies of such insurance and, as often as the   Collateral Agent may reasonably request, a report of a reputable insurance broker with   respect to such insurance.   (b) Reimbursement under any liability insurance maintained by any Grantor   pursuant to this Section 10 may be paid directly to the Person who shall have incurred   liability covered by such insurance.   Section 11. Post-Closing Changes; Collections on Assigned Agreements,   Receivables and Related Contracts   (a) No Grantor will change its name, type of organization, jurisdiction of   organization, organizational identification number or location of its chief executive office   from those set forth in Schedule VII of this Agreement unless authorized by the terms of   the Credit Agreement and, without first giving prior written notice to the Collateral Agent   and taking all actions required by the Collateral Agent for the purposes of perfecting or   protecting the security interest granted by this Agreement.  Each Grantor will hold and   preserve its records relating to the Collateral, including, without limitation, the Assigned   Agreements and Related Contracts, and will permit representatives of the Collateral   Agent at any time during normal business hours to inspect and make abstracts from such   records and other documents on the terms set forth in Section 6.10 of the Credit   Agreement.  If any Grantor does not have an organizational identification number and   later obtains one, it will promptly notify the Collateral Agent of such organizational   identification number.   (b) Except as otherwise provided in this subsection (b), each Grantor will   continue to collect, at its own expense, all amounts due or to become due such Grantor   under the Assigned Agreements, Receivables and Related Contracts in accordance with   its business practices (including settlement of accounts).  In connection with such   collections, the Collateral Agent may take (and, upon the occurrence and during the     

 

   19   49466791_7   continuance of an Event of Default, at the Required Lender’s direction, will take) such   action as such Grantor or the Collateral Agent may deem necessary or advisable to   enforce collection of the Assigned Agreements, Receivables and Related Contracts;   provided, however, that the Collateral Agent shall have the right (to the extent permitted   under applicable law) at any time, upon the occurrence and during the continuance of an   Event of Default and upon written notice to such Grantor of its intention to do so, to   notify the Obligors under any Assigned Agreements, Receivables and Related Contracts   of the assignment of such Assigned Agreements, Receivables and Related Contracts to   the Collateral Agent and to direct such Obligors to make payment of all amounts due or   to become due to such Grantor thereunder directly to the Collateral Agent and, upon such   notification and at the expense of such Grantor, to enforce collection of any such   Assigned Agreements, Receivables and Related Contracts, to adjust, settle or   compromise the amount or payment thereof, in the same manner and to the same extent   as such Grantor might have done, and to otherwise exercise all rights with respect to such   Assigned Agreements, Receivables and Related Contracts, including, without limitation,   those set forth set forth in Section 9-607 of the UCC, provided that any deduction of   expenses of collection and enforcement shall be subject to Section 11.04 of the Credit   Agreement.  After receipt by any Grantor of the notice from the Collateral Agent referred   to in the proviso to the preceding sentence, (i) all amounts and proceeds (including,   without limitation, instruments) received by such Grantor in respect of the Assigned   Agreements, Receivables and Related Contracts of such Grantor shall be received in trust   for the benefit of the Collateral Agent hereunder, shall be segregated from other funds of   such Grantor and shall be promptly paid over to the Collateral Agent in the same form as   so received (with any necessary indorsement) to be deposited in the Cash Collateral   Account and (ii) such Grantor will not adjust, settle or compromise the amount or   payment of any Receivable or amount due on any Assigned Agreement or Related   Contract, release wholly or partly any Obligor thereof or allow any credit or discount   thereon.     Section 12. As to Intellectual Property Collateral   (a) Except as could not be reasonably expected to be material and adverse to the   business of Borrower and its Subsidiaries taken as a whole, with respect to each item of   its Intellectual Property Collateral, each Grantor agrees to take, at its expense, all   necessary steps, including, without limitation, in the U.S. Patent and Trademark Office,   the U.S. Copyright Office and any other governmental authority, to (i) maintain the   validity and enforceability of such Intellectual Property Collateral and maintain such   Intellectual Property Collateral in full force and effect, and (ii) pursue the registration and   maintenance of each patent, trademark, or copyright registration or application, now or   hereafter included in such Intellectual Property Collateral of such Grantor, including,   without limitation, the payment of required fees and taxes, the filing of responses to   office actions issued by the U.S. Patent and Trademark Office, the U.S. Copyright Office   or other governmental authorities, the filing of applications for renewal or extension, the   filing of affidavits under Sections 8 and 15 of the U.S. Trademark Act, the filing of   divisional, continuation, continuation-in-part, reissue and renewal applications or   extensions, the payment of maintenance fees and the participation in interference,   reexamination, opposition, cancellation, infringement and misappropriation proceedings.      

 

   20   49466791_7   No Grantor shall, without the written consent of the Collateral Agent, discontinue use of   or otherwise abandon any Intellectual Property Collateral, or abandon any right to file an   application for patent, trademark, or copyright, unless such Grantor shall have previously   determined that such use or the pursuit or maintenance of such Intellectual Property   Collateral is no longer desirable in the conduct of such Grantor’s business and that the   loss thereof could not reasonably be expected to have a Material Adverse Effect.   (b) Except as could not be reasonably expected to be material to the business of   Borrower and its Subsidiaries taken as a whole, each Grantor agrees promptly to notify   the Collateral Agent if such Grantor becomes aware (i) that any item of the Intellectual   Property Collateral may have become abandoned, placed in the public domain, invalid or   unenforceable, or of any adverse determination or development regarding such Grantor’s   ownership of any of the Intellectual Property Collateral or its right to register the same or   to keep and maintain and enforce the same, or (ii) of any adverse determination or the   institution of any proceeding (including, without limitation, the institution of any   proceeding in the U.S. Patent and Trademark Office or any court) regarding any item of   the Intellectual Property Collateral.   (c) In the event that any Grantor becomes aware that any item of the Intellectual   Property Collateral is being infringed or misappropriated by a third party, such Grantor   shall promptly notify the Collateral Agent and shall take such actions, at its expense, as   such Grantor deems reasonable and appropriate under the circumstances to protect or   enforce such Intellectual Property Collateral, including, without limitation, suing for   infringement or misappropriation and for an injunction against such infringement or   misappropriation, except as could not be reasonably expected to be material to the   business of Borrower and its Subsidiaries taken as a whole.   (d) Except as could not be reasonably expected to be material and adverse to the   business of Borrower and its Subsidiaries taken as a whole, each Grantor shall use proper   statutory notice in connection with its use of each item of its Intellectual Property   Collateral.  Except as could not be reasonably expected to be material and adverse to the   business of Borrower and its Subsidiaries taken as a whole, no Grantor shall do or permit   any act or knowingly omit to do any act whereby any of its Intellectual Property   Collateral may lapse or become invalid or unenforceable or placed in the public domain.   (e) Except as could not be reasonably expected to be material and adverse to the   business of Borrower and its Subsidiaries taken as a whole, each Grantor shall take all   steps which it or the Collateral Agent deems reasonable and appropriate under the   circumstances to preserve and protect each item of its Intellectual Property Collateral,   including, without limitation, maintaining the quality of any and all products or services   used or provided in connection with any of the Trademarks, consistent with the quality of   the products and services as of the Closing Date, and taking all steps necessary to ensure   that all licensed users of any of the Trademarks use such consistent standards of quality.   (f) Subject to Section 2(d), with respect to its Intellectual Property Collateral,   each Grantor agrees to execute or otherwise authenticate an agreement, in substantially   the form set forth in Exhibit A hereto (an “Intellectual Property Security Agreement”),     

 

   21   49466791_7   for recording the security interest granted hereunder to the Collateral Agent in such   Intellectual Property Collateral with the U.S. Patent and Trademark Office, the U.S.   Copyright Office and any other governmental authorities necessary to perfect the security   interest hereunder in such Intellectual Property Collateral.   (g) Each Grantor agrees that should it obtain an ownership interest in any item of   the type set forth in Section 1(g) that is not on the Closing Date a part of the Intellectual   Property Collateral (“After-Acquired Intellectual Property”) (i) the provisions of this   Agreement shall automatically apply thereto, and (ii) any such After-Acquired   Intellectual Property and, in the case of trademarks, the goodwill symbolized thereby,   shall automatically become part of the Intellectual Property Collateral subject to the terms   and conditions of this Agreement with respect thereto.  Pursuant to each Security   Agreement Supplement delivered from time to time, each Grantor shall give written   notice to the Collateral Agent identifying the After-Acquired Intellectual Property, and   such Grantor shall execute and deliver to the Collateral Agent with such written notice, or   otherwise authenticate, an agreement substantially in the form of Exhibit B hereto (an “IP   Security Agreement Supplement”) covering such After-Acquired Intellectual Property,   which IP Security Agreement Supplement shall be recorded with the U.S. Patent and   Trademark Office, the U.S. Copyright Office and any other governmental authorities   necessary to perfect the security interest hereunder in such After-Acquired Intellectual   Property.   Section 13. Voting Rights; Dividends; Etc.   (a) So long as no Event of Default shall have occurred and be continuing, except   as otherwise provided in this Agreement, in the Credit Agreement or in the Final DIP   Order:   (i) Each Grantor shall be entitled to exercise any and all voting and   other consensual rights pertaining to the Security Collateral of such Grantor or   any part thereof for any purpose.   (ii) Each Grantor shall be entitled to receive and retain any and all   dividends, interest and other distributions paid in respect of the Security Collateral   of such Grantor if and to the extent that the payment thereof is not otherwise   prohibited by the terms of the Loan Documents; provided, however, that any and   all dividends, interest and other distributions paid or payable other than in cash in   respect of, and instruments and other property received, receivable or otherwise   distributed in respect of, or in exchange for, any Security Collateral shall be, and   shall be promptly delivered to the Collateral Agent to hold as, Security Collateral   and shall, if received by such Grantor, be received in trust for the benefit of the   Collateral Agent, be segregated from the other property or funds of such Grantor   and be promptly delivered to the Collateral Agent as Security Collateral in the   same form as so received (with any necessary indorsement).   (iii) The Collateral Agent will execute and deliver (or cause to be   executed and delivered) to each Grantor, at the Grantors’ cost and expense, all     

 

   22   49466791_7   such proxies and other instruments as such Grantor may reasonably request for   the purpose of enabling such Grantor to exercise the voting and other rights that it   is entitled to exercise pursuant to paragraph (i) above and to receive the dividends   or interest payments that it is authorized to receive and retain pursuant to   paragraph (ii) above.   (b) Upon the occurrence and during the continuance of an Event of Default and   subject to the Final DIP Order:   (i) All rights of each Grantor (x) to exercise or refrain from exercising   the voting and other consensual rights that it would otherwise be entitled to   exercise pursuant to Section 13(a)(i) shall, upon notice to such Grantor by the   Collateral Agent, cease and (y) to receive the dividends, interest and other   distributions that it would otherwise be authorized to receive and retain pursuant   to Section 13(a)(ii) shall automatically cease, and all such rights shall thereupon   become vested in the Collateral Agent, which shall thereupon have the sole right   to exercise or refrain from exercising such voting and other consensual rights and   to receive and hold as Security Collateral such dividends, interest and other   distributions.   (ii) All dividends, interest and other distributions that are received by   any Grantor contrary to the provisions of paragraph (i) of this Section 13(b) shall   be received in trust for the benefit of the Collateral Agent, shall be segregated   from other funds of such Grantor and shall be promptly paid over to the Collateral   Agent as Security Collateral in the same form as so received (with any necessary   indorsement).   Section 14. As to Letter-of-Credit Rights   (a) Each Grantor, by granting a security interest in its Receivables consisting of   letter-of-credit rights to the Collateral Agent, intends to (and hereby does) assign to the   Collateral Agent its rights (including its contingent rights) to the proceeds of all Related   Contracts consisting of letters of credit of which it is or hereafter becomes a beneficiary   or assignee.  Upon the occurrence and during the continuance of an Event of Default,   each Grantor will promptly following the request of the Collateral Agent use   commercially reasonable efforts to cause the issuer of each letter of credit and each   nominated person (if any) with respect thereto to consent to such assignment of the   proceeds thereof pursuant to a consent in form and substance reasonably satisfactory to   the Collateral Agent and deliver written evidence of such consent to the Collateral Agent.   (b) Upon the occurrence and during the continuance of an Event of Default, each   Grantor will, promptly upon request by the Collateral Agent, (i) notify (and such Grantor   hereby authorizes the Collateral Agent to notify) the issuer and each nominated person   with respect to each of the Related Contracts consisting of letters of credit that the   proceeds thereof have been assigned to the Collateral Agent hereunder and any payments   due or to become due in respect thereof are to be made directly to the Collateral Agent or     

 

   23   49466791_7   its designee and (ii) arrange for the Collateral Agent to become the transferee beneficiary   of such letter of credit.   Section 15. Commercial Tort Claims   Each Grantor will, pursuant to the delivery of the Security Agreement   Supplements from time to time, give notice to the Collateral Agent of any commercial tort claim   with a value reasonably believed to be in excess of $500,000 that may arise after the Closing   Date and will, thereafter, promptly execute or otherwise authenticate a supplement to this   Agreement, and otherwise take all necessary action, to subject such commercial tort claim to the   first priority security interest created under this Agreement.   Section 16. Transfers and Other Liens; Additional Shares   (a) Each Grantor agrees that it will not (i) sell, assign or otherwise dispose of, or   grant any option with respect to, any of the Collateral, other than sales, assignments and   other dispositions of Collateral, and options relating to Collateral, permitted under the   terms of the Credit Agreement, or (ii) create or suffer to exist any Lien upon or with   respect to any of the Collateral of such Grantor except for the pledge, assignment and   security interest created under this Agreement and Liens permitted under the Credit   Agreement.   (b) Each Grantor agrees that it will (i) cause each Subsidiary of Borrower that is   an issuer of the Pledged Equity pledged by such Grantor not to issue any Equity Interests   or other securities in addition to or in substitution for the Pledged Equity issued by such   issuer, except to such Grantor, and (ii) pledge hereunder, promptly upon its acquisition   (directly or indirectly) thereof, any and all additional Equity Interests or other securities   of each issuer of the Pledged Equity, except for any Excluded Equity Interest.   Section 17. Collateral Agent Appointed Attorney in Fact   Solely to the extent permitted by applicable law, each Grantor hereby irrevocably   appoints the Collateral Agent such Grantor’s attorney in fact, with full authority in the place and   stead of such Grantor and in the name of such Grantor or otherwise, from time to time, upon the   occurrence and during the continuance of an Event of Default or as otherwise set forth in the   Credit Agreement or any other Loan Document, in the Collateral Agent’s discretion, to take any   action and to execute any instrument that the Collateral Agent may deem necessary or advisable   to accomplish the purposes of this Agreement, including, without limitation:   (a) to obtain and adjust insurance required to be paid to the Collateral Agent   pursuant to Section 9 of this Agreement,   (b) to ask for, demand, collect, sue for, recover, compromise, receive and give   acquittance and receipts for moneys due and to become due under or in respect of any of   the Collateral,   (c) to receive, indorse and collect any drafts or other instruments, documents and   chattel paper, in connection with clause (a) or (b) above, and     

 

   24   49466791_7   (d) to file any claims or take any action or institute any proceedings that the   Collateral Agent may deem necessary or desirable for the collection of any of the   Collateral or otherwise to enforce compliance with the terms and conditions of any   Assigned Agreement or the rights of the Collateral Agent with respect to any of the   Collateral.   Section 18. Collateral Agent May Perform   If any Grantor fails to perform any agreement contained herein, the Collateral   Agent may with reasonable prior notice (or upon the occurrence and during the continuance of   an Event of Default, without notice), but without any obligation to do so and without notice,   itself perform, or cause performance of, such agreement, and the expenses of the Collateral   Agent incurred in connection therewith shall be payable by such Grantor under Section 21 of this   Agreement.   Section 19. The Collateral Agent’s Duties   (a) The powers conferred on the Collateral Agent hereunder are solely to protect   the Secured Parties’ interest in the Collateral and shall not impose any duty upon it to   exercise any such powers.  In performing its functions and duties solely under this   Agreement, the Collateral Agent shall act solely as the agent of the Secured Parties and   does not assume, nor shall be deemed to have assumed, a fiduciary relationship or any   obligation or relationship of trust with or for the Secured Parties. Except for the safe   custody of any Collateral in its possession and the accounting for moneys actually   received by it hereunder, the Collateral Agent shall have no duty as to any Collateral, as   to ascertaining or taking action with respect to calls, conversions, exchanges, maturities,   tenders or other matters relative to any Collateral, whether or not any Secured Party has   or is deemed to have knowledge of such matters, or as to the taking of any necessary   steps to preserve rights against any parties or any other rights pertaining to any Collateral.    The Collateral Agent shall be deemed to have exercised reasonable care in the custody   and preservation of any Collateral in its possession if such Collateral is accorded   treatment substantially equal to that which it accords its own property.  In connection   with exercising any right or discretionary duty hereunder, the Collateral Agent shall be   entitled to rely upon the direction of the Required Lenders.  The Collateral Agent shall   not have any liability for taking any action at the direction of such party, or for any   failure or delay of any such party to provide timely direction to the Collateral Agent.    Notwithstanding any other provision of this Agreement, (i) any such direction may not   conflict with any rule of law or with this Agreement and (ii) the Collateral Agent shall   not be required to take any action that it determines might involve it in liability.  The   Collateral Agent shall have no duties or obligations under this Agreement except for   those expressly set forth herein as duties on its part to be performed.   (b) Anything contained herein to the contrary notwithstanding, the Collateral   Agent may from time to time, when the Collateral Agent deems it to be necessary,   appoint one or more subagents (each a “Subagent”) for the Collateral Agent hereunder   with respect to all or any part of the Collateral.  In the event that the Collateral Agent so   appoints any Subagent with respect to any Collateral, (i) the assignment and pledge of     

 

   25   49466791_7   such Collateral and the security interest granted in such Collateral by each Grantor   hereunder shall be deemed for purposes of this Security Agreement to have been made to   such Subagent, in addition to the Collateral Agent, for the ratable benefit of the Secured   Parties, as security for the Secured Obligations of such Grantor, (ii) such Subagent shall   automatically be vested, in addition to the Collateral Agent, with all rights, powers,   privileges, interests and remedies of the Collateral Agent hereunder with respect to such   Collateral, and (iii) the term “Collateral Agent,” when used herein in relation to any   rights, powers, privileges, interests and remedies of the Collateral Agent with respect to   such Collateral, shall include such Subagent; provided, however, that no such Subagent   shall be authorized to take any action with respect to any such Collateral unless and   except to the extent expressly authorized in writing by the Collateral Agent.   Section 20. Remedies   If any Event of Default shall have occurred and be continuing:   (a) The Collateral Agent may (but shall not be obligated to) exercise in respect of   the Collateral, in addition to other rights and remedies provided for herein or otherwise   available to it, all the rights and remedies of a secured party upon default under the UCC   (whether or not the UCC applies to the affected Collateral) and also may (but shall not be   obligated to):  (i) require each Grantor to, and each Grantor hereby agrees that it will at   its expense and upon request of the Collateral Agent promptly, assemble all or part of the   Collateral as directed by the Collateral Agent and make it available to the Collateral   Agent at a place and time to be designated by the Collateral Agent that is reasonably   convenient to both parties; (ii) without notice except as specified below, sell the   Collateral or any part thereof in one or more parcels at public or private sale, at any of the   Collateral Agent’s offices or elsewhere, for cash, on credit or for future delivery, and   upon such other terms as the Collateral Agent may deem commercially reasonable; (iii)   occupy any premises owned or leased by any of the Grantors where the Collateral or any   part thereof is assembled or located for a reasonable period in order to effectuate its rights   and remedies hereunder or under law, without obligation to such Grantor in respect of   such occupation; and (iv) exercise any and all rights and remedies of any of the Grantors   under or in connection with the Collateral, or otherwise in respect of the Collateral,   including, without limitation, (A) any and all rights of such Grantor to demand or   otherwise require payment of any amount under, or performance of any provision of, the   Assigned Agreements, the Receivables, the Related Contracts and the other Collateral,   (B) withdraw, or cause or direct the withdrawal, of all funds with respect to the Account   Collateral and (C) exercise all other rights and remedies with respect to the Assigned   Agreements, the Receivables, the Related Contracts and the other Collateral, including,   without limitation, those set forth in Section 9-607 of the UCC, provided that any   deduction of expenses of collection and enforcement shall be subject to the Credit   Agreement.  Each Grantor agrees that, to the extent notice of sale shall be required by   law, at least ten days’ notice to such Grantor of the time and place of any public sale or   the time after which any private sale is to be made shall constitute reasonable   notification.  The Collateral Agent shall not be obligated to make any sale of Collateral   regardless of notice of sale having been given.  The Collateral Agent may adjourn any   public or private sale from time to time by announcement at the time and place fixed     

 

   26   49466791_7   therefor, and such sale may, without further notice, be made at the time and place to   which it was so adjourned.   (b) Any cash held by or on behalf of the Collateral Agent and all cash proceeds   received by or on behalf of the Collateral Agent in respect of any sale of, collection from,   or other realization upon all or any part of the Collateral may, in the discretion of the   Collateral Agent, be held by the Collateral Agent as collateral for, and/or then or at any   time thereafter applied (after payment of any amounts payable to the Collateral Agent   pursuant to Section 21 of this Agreement) in whole or in part by the Collateral Agent for   the ratable benefit of the Secured Parties against, all or any part of the Secured   Obligations, in accordance with Section 8.03 of the Credit Agreement.   (c) All payments received by any Grantor under or in connection with any   Assigned Agreement or otherwise in respect of the Collateral shall be received in trust for   the benefit of the Collateral Agent, shall be segregated from other funds of such Grantor   and shall be promptly paid over to the Collateral Agent in the same form as so received   (with any necessary indorsement).   (d) The Collateral Agent may, without notice to any Grantor except as required by   law and at any time or from time to time, charge, set off and otherwise apply all or any   part of the Secured Obligations against any funds held with respect to the Account   Collateral or in any other deposit account.   (e) The Collateral Agent may send to each bank, securities intermediary or issuer   party to any Deposit Account Control Agreement, Securities Account Control Agreement   or Uncertificated Security Control Agreement a “Notice of Exclusive Control” (or similar   term) as defined in and under such Agreement.   (f) In the event of any sale or other disposition of any of the Intellectual Property   Collateral of any Grantor, the goodwill symbolized by any Trademarks subject to such   sale or other disposition shall be included therein, and such Grantor shall supply to the   Collateral Agent or its designee such Grantor’s know-how and expertise, and documents   and things relating to any Intellectual Property Collateral subject to such sale or other   disposition, and such Grantor’s customer lists and other records and documents relating   to such Intellectual Property Collateral and to the manufacture, distribution, advertising   and sale of products and services of such Grantor.   (g) Each Grantor recognizes that, by reason of certain prohibitions contained in   law, rules, regulations or orders of any Governmental Authority, the Collateral Agent   may be compelled, with respect to any sale of all or any part of the Collateral, to limit   purchasers to those who meet the requirements of such Governmental Authority.  Each   Grantor acknowledges that any such sale may be at prices and on terms less favorable to   the Collateral Agent than those obtainable through a public sale without such restrictions,   and, notwithstanding such circumstances, agrees that any such restricted sale shall be   deemed to have been made in a commercially reasonable manner and that, except as may   be required by applicable law, the Collateral Agent shall have no obligation to engage in   public sales.     

 

   27   49466791_7   (h) Each Grantor recognizes that, by reason of certain prohibitions contained in   the Securities Act of 1933, as amended, and applicable state securities laws, the   Collateral Agent may be compelled, with respect to any sale of all or any part of the   Pledged Equity, to limit purchasers to persons who will agree, among other things, to   acquire such Pledged Equity for their own account, for investment and not with a view to   the distribution or resale thereof.  Each Grantor acknowledges that any such private sales   may be at prices and on terms less favorable to the Collateral Agent than those obtainable   through a public sale without such restrictions (including a public offering made pursuant   to a registration statement under the Securities Act), and, notwithstanding such   circumstances, agrees that any such private sale shall be deemed to have been made in a   commercially reasonable manner and that the Collateral Agent shall have no obligation to   engage in public sales and no obligation to delay the sale of any Pledged Equity for the   period of time necessary to permit the issuer thereof to register it for a form of public sale   requiring registration under the Securities Act or under applicable state securities laws,   even if such issuer would agree to do so.   Section 21. Indemnity and Expenses   (a) Each Grantor agrees to indemnify, each Secured Party and each of its Related   Parties in accordance with the terms of the Credit Agreement.   (b) Each Grantor shall pay to the Collateral Agent the amount of any and all fees   and expenses in accordance with the terms of the Credit Agreement.   (c) Cantor Fitzgerald Securities is entering into this Agreement solely in its   capacity as Collateral Agent and not in its individual or corporate capacity.   Section 22. Amendments; Waivers; Additional Grantors; Etc.   (a) No amendment or waiver of any provision of this Agreement, and no consent   to any departure by any Grantor herefrom, shall in any event be effective unless the same   shall be in writing and signed by the Collateral Agent, and then such waiver or consent   shall be effective only in the specific instance and for the specific purpose for which   given.  No failure on the part of the Collateral Agent or any other Secured Party to   exercise, and no delay in exercising any right hereunder, shall operate as a waiver   thereof; nor shall any single or partial exercise of any such right preclude any other or   further exercise thereof or the exercise of any other right.   (b) Upon the execution and delivery by any Person of a security agreement   supplement in substantially the form of Exhibit C hereto (each a “Security Agreement   Supplement”), such Person shall be referred to as an “Additional Grantor” and shall be   and become a Grantor hereunder, and each reference in this Agreement and the other   Loan Documents to “Grantor” shall also mean and be a reference to such Additional   Grantor, each reference in this Agreement and the other Loan Documents to the   “Collateral” shall also mean and be a reference to the Collateral granted by such   Additional Grantor and each reference in this Agreement to any schedule shall also mean   and be a reference to the schedules attached to such Security Agreement Supplement.     

 

   28   49466791_7   Section 23. Notices, Etc.   Any notice or other communication herein required or permitted to be given shall   be given in the manner and become effective as set forth in Section 11.02 of the Credit   Agreement.   Section 24. Continuing Security Interest; Assignments under the Credit   Agreement   This Agreement shall create a continuing security interest in the Collateral and   shall (a) remain in full force and effect until (x) the termination of all Obligations under the   Credit Agreement and the other Loan Documents and (y) the later of (i) the payment in full in   cash of the Secured Obligations (other than contingent indemnification obligations for which no   claim has been made) and (ii) the Maturity Date, (b) be binding upon each Grantor, its successors   and assigns and (c) inure, together with the rights and remedies of the Collateral Agent   hereunder, to the benefit of the Secured Parties and their respective successors, transferees and   assigns.  Without limiting the generality of the foregoing clause (c), any Lender may assign or   otherwise transfer all or any portion of its rights and obligations under the Credit Agreement   (including, without limitation, all or any portion of its Commitment(s), the Loans owing to it and   the Note or Notes, if any, held by it) to any other Person, and such other Person shall thereupon   become vested with all the benefits in respect thereof granted to such Lender herein or otherwise,   in each case as provided in Section 11.06 of the Credit Agreement.   Section 25. Release; Termination   (a) Upon any sale, lease, transfer or other disposition of any item of Collateral of   any Grantor in accordance with the terms of the Loan Documents (other than sales of   Inventory in the ordinary course of business), the Collateral Agent will, at such Grantor’s   expense, execute and deliver to such Grantor such documents as such Grantor shall   reasonably request to evidence the release of such item of Collateral from the assignment   and security interest granted hereby; provided, however, that (i) such sale, lease, transfer   or other disposition shall be in compliance with the applicable provisions of Sections 7.04   and 7.05 of the Credit Agreement, (ii) such Grantor shall have delivered to the Collateral   Agent, at least ten Business Days (or such shorter period as the Collateral Agent may   agree in its sole discretion) prior to the date of the proposed release, a written request for   release describing the item of Collateral and the terms of the sale, lease, transfer or other   disposition in reasonable detail, including, without limitation, the price thereof and any   expenses in connection therewith, together with a form of release for execution by the   Collateral Agent and a certificate of such Grantor to the effect that the transaction is in   compliance with the Loan Documents and as to such other matters as the Collateral   Agent may reasonably request and (iii) the proceeds of any such sale, lease, transfer or   other disposition required to be applied, or any payment to be made in connection   therewith, in accordance with the terms of the Credit Agreement (including Section 2.05   thereof) shall, to the extent so required, be paid or made to, or in accordance with the   instructions of, the Collateral Agent when and as required under the Credit Agreement   (including Section 2.05 thereof).     

 

   29   49466791_7   (b) Upon (x) the termination of all Obligations under the Credit Agreement and   (y) the later of (i) the payment in full in cash of the Secured Obligations (other than   contingent indemnification obligations for which no claim has been made) and (ii) the   Maturity Date, the pledge and security interest granted hereby shall terminate and all   rights to the Collateral shall revert to the applicable Grantor.  Upon any such termination,   the Collateral Agent will, at the applicable Grantor’s expense, execute and deliver to such   Grantor such documents as such Grantor shall reasonably request to evidence such   termination.   Section 26. Security Interest Absolute   All rights of the Collateral Agent hereunder, the grant of a security interest in the   Collateral and all obligations of each Grantor hereunder shall be absolute and unconditional   irrespective of (a) any lack of validity or enforceability of the Credit Agreement, any other Loan   Document, any agreement with respect to any Secured Obligations or any other agreement or   instrument relating to any of the foregoing, (b) any change in the time, manner or place of   payment of, or in any other term of, all or any of the Secured Obligations, or any other   amendment or waiver of or any consent to any departure from the Credit Agreement, any other   Loan Document or any other agreement or instrument, (c) any exchange, release or non-   perfection of any Lien on other collateral, or any release or amendment or waiver of or consent   under or departure from any guarantee securing or guaranteeing all or any of the Secured   Obligations or (d) subject only to termination of a Grantor’s obligations hereunder in accordance   with the terms of Section 9.08 of the Credit Agreement and Section 25 hereof, any other   circumstance that might otherwise constitute a defense available to, or a discharge of, any   Grantor in respect of the Secured Obligations or this Agreement.   Section 27. Execution in Counterparts   This Agreement may be executed in any number of counterparts, each of which   when so executed shall be deemed to be an original and all of which taken together shall   constitute one and the same agreement.  Delivery of an executed counterpart of a signature page   to this Agreement by telecopier or other electronic imaging means shall be effective as delivery   of an original executed counterpart of this Agreement.   Section 28. Local Law Security Agreement   Certain of the Grantors are or may be required to enter into security agreements,   pledge agreements or other documents, governed by the laws of the relevant jurisdiction and in   form and substance reasonably satisfactory to the Administrative Agent (such agreements, the   “Local Law Agreements”), in order to secure the Secured Obligations by Collateral that is   located in such relevant jurisdiction, including the Equity Interests owned by such Grantors in   respect of such Collateral.  In the event of any conflict between a Local Law Agreements and the   provisions of this Agreement with respect to any action required to be taken by the applicable   Grantor under this Agreement (and any related representation) by the Borrower and any other   Grantors, the provisions of such Local Law Agreement shall control with respect to the   Collateral pledged thereunder.     

 

   30   49466791_7   Section 29. Governing Law, Consent to Jurisdiction and Service of Process;   Waiver of Jury Trial   (a) THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE   PARTIES HEREUNDER SHALL BE GOVERNED BY, AND SHALL BE   CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE   STATE OF NEW YORK WITHOUT REGARD TO CONFLICT OF LAWS   PRINCIPLES (OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK   GENERAL OBLIGATIONS LAW) THEREOF, EXCEPT AS GOVERNED BY THE   BANKRUPTCY CODE.   (b) EACH GRANTOR IRREVOCABLY AND UNCONDITIONALLY   AGREES THAT IT WILL NOT COMMENCE ANY ACTION, LITIGATION OR   PROCEEDING OF ANY KIND OR DESCRIPTION, WHETHER IN LAW OR   EQUITY, WHETHER IN CONTRACT OR IN TORT OR OTHERWISE, AGAINST   THE COLLATERAL AGENT, ANY LENDER, OR ANY RELATED PARTY OF THE   FOREGOING IN ANY WAY RELATING TO THIS AGREEMENT OR THE   TRANSACTIONS RELATING HERETO OR THERETO, IN ANY FORUM OTHER   THAN THE BANKRUPTCY COURT OR, IN THE EVENT THE BANKRUPTCY   COURT LACKS JURISDICTION OVER SUCH ACTION, LITIGATION, OR   PROCEEDING, TO ANY STATE OR FEDERAL COURT SITTING IN THE   BOROUGH OF MANHATTAN, NEW YORK, NEW YORK.  EACH GRANTOR   IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS   PROPERTY, TO THE JURISDICTION OF THE BANKRUPTCY COURT OR, IN THE   EVENT THE BANKRUPTCY COURT LACKS SUBJECT MATTER JURISDICTION   OVER ANY ACTION, LITIGATION, OR PROCEEDING RELATING TO THIS   AGREEMENT, ANY OTHER LOAN DOCUMENT, OR THE TRANSACTIONS   RELATING HERETO OR THERETO, TO ANY STATE OR FEDERAL COURT   SITTING IN THE BOROUGH OF MANHATTAN, NEW YORK, NEW YORK, IN   ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS   AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR FOR RECOGNITION OR   ENFORCEMENT OF ANY JUDGMENT, AND EACH OF THE PARTIES HERETO   IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN   RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY BE HEARD AND   DETERMINED IN SUCH COURTS.  EACH OF THE PARTIES HERETO AGREES   THAT A FINAL JUDGMENT IN ANY SUCH ACTION, LITIGATION OR   PROCEEDING SHALL BE CONCLUSIVE.  NOTHING IN THIS AGREEMENT OR   IN ANY OTHER LOAN DOCUMENT SHALL AFFECT ANY RIGHT THAT THE   COLLATERAL AGENT OR ANY LENDER MAY OTHERWISE HAVE TO BRING   ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY   OTHER LOAN DOCUMENT, INCLUDING WITH RESPECT TO COLLATERAL,   AGAINST EACH GRANTOR OR ITS PROPERTIES IN THE COURTS OF ANY   JURISDICTION.   (c) WAIVER OF VENUE.  EACH GRANTOR IRREVOCABLY AND   UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY   APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER     

 

   31   49466791_7   HAVE TO THE LAYING OF VENUE OF ANY ACTION OR PROCEEDING   ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN   DOCUMENT IN ANY COURT REFERRED TO IN PARAGRAPH (B) OF THIS   SECTION.  EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES,   TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE DEFENSE   OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR   PROCEEDING IN ANY SUCH COURT.   (d) SERVICE OF PROCESS.  EACH PARTY HERETO IRREVOCABLY   CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR   NOTICES IN SECTION 11.02 OF THE CREDIT AGREEMENT.  NOTHING IN THIS   AGREEMENT WILL AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE   PROCESS IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW.   (e) EACH GRANTOR THAT IS ORGANIZED UNDER THE LAWS OF A   JURISDICTION OUTSIDE THE UNITED STATES HEREBY APPOINTS THE   BORROWER, AS ITS AGENT FOR SERVICE OF PROCESS IN ANY MATTER   RELATED TO THIS AGREEMENT.   Section 30. Luxembourg Pledge.   GT ADVANCED TECHNOLOGIES LUXEMBOURG S.À R.L. is executing this   Agreement only with respect to Section 2(a)(iv)(C) in connection with the pledge of its Equity   Interests in GTAT IP HOLDING LLC.   [Signature Page to Follow]    

 

    [Signature Page to U.S. Security Agreement   49466791_7   IN WITNESS WHEREOF, each Grantor has caused this Agreement to be duly   executed and delivered by its officer thereunto duly authorized as of the date first above written.   GT ADVANCED TECHNOLOGIES, INC.         Name:    Title:    GTAT CORPORATION         Name:    Title:    GT EQUIPMENT HOLDINGS, INC.         Name:    Title:    LINDBERGH ACQUISITION CORP.         Name:    Title:    GT SAPPHIRE SYSTEMS HOLDING LLC          Name:    Title:       GT ADVANCED EQUIPMENT HOLDING   LLC      Name:    Title:         

 

   [Signature Page to U.S. Security Agreement]   GT ADVANCED CZ LLC         Name:    Title:       GT SAPPHIRE SYSTEMS GROUP LLC         Name:    Title:       GT ADVANCED TECHNOLOGIES   LUXEMBOURG S.A. R.L.         Name:    Title:       GTAT IP HOLDING LLC         Name:    Title:            

 

   [Signature Page to U.S. Security Agreement]    COLLATERAL AGENT   CANTOR FITZGERALD SECURITIES,   solely in its capacity as Collateral Agent         Name:    Title:               

 

   49466791_7   Schedule I to the   U.S. Security Agreement      PLEDGED EQUITY         Issuer Owner Certificate No.   No.   Shares/Interest Percent Pledged                                                             

 

   49466791_7   Schedule II to the   U.S. Security Agreement      PLEDGED DEBT         Grantor   Debt   Issuer   Description   of Debt   Debt   Certificate   No(s)   Final   Maturity   Outstanding   Principal   Amount                           

 

   49466791_7   Schedule III to the   U.S. Security Agreement   PLEDGED DEPOSIT ACCOUNTS   Grantor Type of Account   Name and   Address   of Bank Account Number                                                              

 

   49466791_7   Schedule IV to the   U.S. Security Agreement   INTELLECTUAL PROPERTY      Copyrights, Copyright Applications and Copyright Licenses   Owner Title Filing Date/Issued   Date   Status Application/   Registration No.                                                        2. Patents, Patent Applications and Patent Licenses      Owner Title Filing Date/Issued   Date   Status Application/   Registration No.                                                        3. Trademarks, Trademark Applications and Trademark Licenses      Owner Title Filing Date/Issued   Date   Status Application/   Registration No.                                                            

 

   49466791_7   Schedule V to the   U.S. Security Agreement   LETTERS OF CREDIT      Issuer Beneficiary   Principal   Amount Date of Issuance Maturity Date                                              

 

   49466791_7   Schedule VI to the   U.S. Security Agreement   COMMERCIAL TORT CLAIMS      Grantor Description                    

 

   49466791_7   Schedule VII to the   U.S. Security Agreement   GRANTORS         Name of Grantor         Type of Organization   (e.g. corporation, limited   liability company,   limited partnership)      Jurisdiction of   Organization/   Formation      Organizational   Identification   Number         Federal   Taxpayer   Identification   Number                                                       Trade Names/Assumed Names.  Set forth below is each trade name or assumed name currently   used by the Grantors or by such Grantor is known or is transacting any business within the past five (5)   years:      Grantor Trade/Assumed Name                      Changes in Names, Jurisdiction of Organization or Corporate Structure.  Except as set forth   below, the Grantors have not changed its name, jurisdiction of organization or its corporate structure in   any way (e.g. by merger, consolidation, change in corporate form, change in jurisdiction of organization   or otherwise) within the past five (5) years:      Grantor Date of Change Description of Change                            

 

   49466791_7   Schedule VIII to the   U.S. Security Agreement   LOCATIONS   Chief Executive Offices and Mailing Addresses.  The chief executive office address and the preferred   mailing address (if different than chief executive office) of each Grantor are as follows:   Name of Grantor Address of Chief Executive Office Mailing Address (if different than)                                                   Other Places of Business.  Set forth below are all other principal places of business of the Grantors:      Name of Grantor Address                      Additional Locations of Equipment and Inventory.  Set forth below are all other locations not   identified above where the Grantors maintain Collateral:      Name of Grantor Address                      Locations of Collateral in Possession of Persons Other than Grantor.  The names and addresses of all   persons or entities other than each Grantor, such as lessees, consignees, warehousemen or purchasers of   chattel paper, which have possession or are intended to have possession of any of the Collateral:      Grantor Name of Entity in Possession of Collateral/Capacity of such Entity Address/Location of Collateral                            

 

   49466791_7   Schedule IX to the   U.S. Security Agreement   INVESTMENT PROPERTY           

 

   1   49466791_7   Exhibit A to the   U.S. Security Agreement   FORM OF INTELLECTUAL PROPERTY SECURITY AGREEMENT   This INTELLECTUAL PROPERTY SECURITY AGREEMENT (as amended,   amended and restated, supplemented or otherwise modified from time to time, the “IP Security   Agreement”) dated [●], is made by the Persons listed on the signature pages hereof (collectively,   the “Grantors”) in favor of CANTOR FITZGERALD SECURITIES, as collateral agent (the   “Collateral Agent”) for the Secured Parties (as defined in the Credit Agreement referred to   below).   WHEREAS, GT ADVANCED TECHNOLOGIES, INC., a Delaware corporation   (“Borrower”) and certain Subsidiaries of Borrower (collectively, the “Debtors” and each   individually, a “Debtor”) have commenced cases under Chapter 11 of Title 11 of the Bankruptcy   Code in the United States Bankruptcy Court for the District of New Hampshire (the “Bankruptcy   Court”), and the Debtors have retained possession of their assets and are authorized under the   Bankruptcy Code to continue the operations of their businesses as debtors-in-possession;   WHEREAS, Grantors have entered into that certain Senior Secured Superpriority   Debtor-in-Possession Credit Agreement, dated as of the date hereof (as it may hereafter be   amended, amended and restated, supplemented or otherwise modified from time to time, being   the “Credit Agreement”) with the Collateral Agent and the Secured Parties party thereto.  Terms   defined in the Credit Agreement and not otherwise defined herein are used herein as defined in   the Credit Agreement.   WHEREAS, as a condition precedent to the making of Loans by the Secured   Parties under the Credit Agreement, each Grantor has executed and delivered that certain U.S.   Security Agreement dated July 27, 2015 made by the Grantors to the Collateral Agent (as   amended, amended and restated, supplemented or otherwise modified from time to time, the   “U.S. Security Agreement”).   WHEREAS, under the terms of the U.S. Security Agreement, the Grantors have   granted to the Collateral Agent, for the ratable benefit of the Secured Parties, a security interest   in, among other property, certain intellectual property of the Grantors, and have agreed as a   condition thereof to execute this IP Security Agreement for recording with the U.S. Patent and   Trademark Office, the United States Copyright Office and other governmental authorities.   NOW, THEREFORE, for good and valuable consideration, the receipt and   sufficiency of which are hereby acknowledged, each Grantor agrees as follows:   SECTION 1.  Grant of Security.  Each Grantor hereby grants to the Collateral   Agent for the ratable benefit of the Secured Parties a security interest in all of such Grantor’s   right, title and interest in and to the following (the “Collateral”):   (i) the patents and patent applications set forth in Schedule A hereto (the   “Patents”);     

 

    2   49466791_7   (ii) the trademark and service mark registrations and applications set forth in   Schedule B hereto (provided that no security interest shall be granted in United States   intent-to-use trademark applications to the extent that, and solely during the period in   which, the grant of a security interest therein would impair the validity or enforceability   of such intent-to-use trademark applications under applicable federal law), together with   the goodwill symbolized thereby (the “Trademarks”);   (iii) all copyrights now owned or hereafter acquired by such Grantor,   including, without limitation, the copyright registrations and applications and exclusive   copyright licenses set forth in Schedule C hereto (the “Copyrights”);   (iv) all reissues, divisions, continuations, continuations-in-part, extensions,   renewals and reexaminations of any of the foregoing, all rights in the foregoing provided   by international treaties or conventions, all rights corresponding thereto throughout the   world and all other rights of any kind whatsoever of such Grantor accruing thereunder or   pertaining thereto;   (v) any and all claims for damages and injunctive relief for past, present and   future infringement, dilution, misappropriation, violation, misuse or breach with respect   to any of the foregoing, with the right, but not the obligation, to sue for and collect, or   otherwise recover, such damages; and   (vi) any and all proceeds of, collateral for, income, royalties and other   payments now or hereafter due and payable with respect to, and supporting obligations   relating to, any and all of the Collateral of or arising from any of the foregoing.   SECTION 2.  Security for Obligations.  The grant of a security interest in, the   Collateral by each Grantor under this IP Security Agreement secures the payment of all   Obligations of such Grantor now or hereafter existing under or in respect of the Loan   Documents, whether direct or indirect, absolute or contingent, and whether for principal,   reimbursement obligations, interest, premiums, penalties, fees, indemnifications, contract causes   of action, costs, expenses or otherwise.  Without limiting the generality of the foregoing, this IP   Security Agreement secures, as to each Grantor, the payment of all amounts that constitute part   of the Secured Obligations and that would be owed by such Grantor to any Secured Party under   the Loan Documents but for the fact that such Secured Obligations are unenforceable or not   allowable due to the existence of a bankruptcy, reorganization or similar proceeding involving a   Loan Party.   SECTION 3.  Recordation.  Each Grantor authorizes and requests that the   Register of Copyrights, the Commissioner for Patents and the Commissioner for Trademarks and   any other applicable government officer record this IP Security Agreement.   SECTION 4.  Execution in Counterparts.  This IP Security Agreement may be   executed in any number of counterparts, each of which when so executed shall be deemed to be   an original and all of which taken together shall constitute one and the same agreement.   SECTION 5.  Grants, Rights and Remedies.  This IP Security Agreement has   been entered into in conjunction with the provisions of the U.S. Security Agreement.  Each     

 

    3   49466791_7   Grantor does hereby acknowledge and confirm that the grant of the security interest hereunder   to, and the rights and remedies of, the Collateral Agent with respect to the Collateral are more   fully set forth in the U.S. Security Agreement, the terms and provisions of which are   incorporated herein by reference as if fully set forth herein.   SECTION 6.  Governing Law.  This IP Security Agreement shall be governed by,   and construed in accordance with, the laws of the State of New York.     

 

   [Signature Page to IP Security Agreement]   49466791_7   IN WITNESS WHEREOF, each Grantor has caused this IP Security Agreement   to be duly executed and delivered by its officer thereunto duly authorized as of the date first   above written.   [NAME OF GRANTOR]   By __________________________   Name:   Title:   Address for Notices:   ____________________________   ____________________________   ____________________________   [NAME OF GRANTOR]   By __________________________   Name:   Title:   Address for Notices:   ____________________________   ____________________________   ____________________________     

 

   49466791_7   Exhibit B to the   U.S. Security Agreement   FORM OF INTELLECTUAL PROPERTY SECURITY AGREEMENT SUPPLEMENT   This INTELLECTUAL PROPERTY SECURITY AGREEMENT   SUPPLEMENT (this “IP Security Agreement Supplement”) dated [●] is made by the Person   listed on the signature page hereof (the “Grantor”) in favor of CANTOR FITZGERALD   SECURITIES, as collateral agent (the “Collateral Agent”) for the Secured Parties (as defined in   the Credit Agreement referred to below).   WHEREAS, GT ADVANCED TECHNOLOGIES, INC., a Delaware corporation   (“Borrower”) and certain Subsidiaries of Borrower (collectively, the “Debtors” and each   individually, a “Debtor”) have commenced cases under Chapter 11 of Title 11 of the Bankruptcy   Code in the United States Bankruptcy Court for the District of New Hampshire (the “Bankruptcy   Court”), and the Debtors have retained possession of their assets and are authorized under the   Bankruptcy Code to continue the operations of their businesses as debtors-in-possession;   WHEREAS, Grantors have entered into that certain Senior Secured Superpriority   Debtor-in-Possession Credit Agreement, dated as of the date hereof (as it may hereafter be   amended, amended and restated, supplemented or otherwise modified from time to time, being   the “Credit Agreement”) with the Collateral Agent and the Secured Parties party thereto.  Terms   defined in the Credit Agreement and not otherwise defined herein are used herein as defined in   the Credit Agreement.   WHEREAS, pursuant to the Credit Agreement, the Grantor and certain other   Persons have executed and delivered that certain U.S. Security Agreement, dated July 27, 2015   made by the Grantor and such other Persons to the Collateral Agent (as amended, amended and   restated, supplemented or otherwise modified from time to time, the “U.S. Security Agreement”)   and that certain Intellectual Property Security Agreement dated July 27, 2015 (as amended,   amended and restated, supplemented or otherwise modified from time to time, the “IP Security   Agreement”).   WHEREAS, under the terms of the U.S. Security Agreement, the Grantor has   granted to the Collateral Agent, for the ratable benefit of the Secured Parties, a security interest   in the Additional Collateral (as defined in Section 1 below) of the Grantor and has agreed as a   condition thereof to execute this IP Security Agreement Supplement for recording with the U.S.   Patent and Trademark Office, the United States Copyright Office and other governmental   authorities.   NOW, THEREFORE, for good and valuable consideration, the receipt and   sufficiency of which are hereby acknowledged, the Grantor agrees as follows:   SECTION 1.  Grant of Security.  Each Grantor hereby grants to the Collateral   Agent, for the ratable benefit of the Secured Parties, a security interest in all of such Grantor’s   right, title and interest in and to the following (the “Additional Collateral”):     

 

    2   49466791_7   (i) the patents and patent applications set forth in Schedule A hereto (the   “Patents”);   (ii) the trademark and service mark registrations and applications set forth in   Schedule B hereto (provided that no security interest shall be granted in United States   intent-to-use trademark applications to the extent that, and solely during the period in   which, the grant of a security interest therein would impair the validity or enforceability   of such intent-to-use trademark applications under applicable federal law), together with   the goodwill symbolized thereby (the “Trademarks”);   (iii) all copyrights now owned or hereafter acquired by such Grantor,   including, without limitation, the copyright registrations and applications and exclusive   copyright licenses set forth in Schedule C hereto (the “Copyrights”);   (iv) all reissues, divisions, continuations, continuations-in-part, extensions,   renewals and reexaminations of any of the foregoing, all rights in the foregoing provided   by international treaties or conventions, all rights corresponding thereto throughout the   world and all other rights of any kind whatsoever of such Grantor accruing thereunder or   pertaining thereto;   (v) any and all claims for damages and injunctive relief for past, present and   future infringement, dilution, misappropriation, violation, misuse or breach with respect   to any of the foregoing, with the right, but not the obligation, to sue for and collect, or   otherwise recover, such damages; and   (vi) any and all proceeds of, collateral for, income, royalties and other   payments now or hereafter due and payable with respect to, and supporting obligations   relating to, any and all of the foregoing or arising from any of the foregoing.   SECTION 2.  Security for Obligations.  The grant of a security interest in the   Additional Collateral by the Grantor under this IP Security Agreement Supplement secures the   payment of all Obligations of the Grantor now or hereafter existing under or in respect of the   Loan Documents, whether direct or indirect, absolute or contingent, and whether for principal,   reimbursement obligations, interest, premiums, penalties, fees, indemnifications, contract causes   of action, costs, expenses or otherwise.   SECTION 3.  Recordation.  The Grantor authorizes and requests that the Register   of Copyrights, the Commissioner for Patents and the Commissioner for Trademarks and any   other applicable government officer record this IP Security Agreement Supplement.   SECTION 4.  Grants, Rights and Remedies.  This IP Security Agreement   Supplement has been entered into in conjunction with the provisions of the U.S. Security   Agreement.  The Grantor does hereby acknowledge and confirm that the grant of the security   interest hereunder to, and the rights and remedies of, the Collateral Agent with respect to the   Additional Collateral are more fully set forth in the U.S. Security Agreement, the terms and   provisions of which are incorporated herein by reference as if fully set forth herein.     

 

    3   49466791_7   SECTION 5.  Governing Law.  This IP Security Agreement Supplement shall be   governed by, and construed in accordance with, the laws of the State of New York.   IN WITNESS WHEREOF, the Grantor has caused this IP Security Agreement   Supplement to be duly executed and delivered by its officer thereunto duly authorized as of the   date first above written.      By__________________________    Name:    Title:   Address for Notices:   ____________________________   ____________________________   ____________________________     

 

   49466791_7   Exhibit C to the   U.S. Security Agreement   FORM OF SECURITY AGREEMENT SUPPLEMENT   [Date of Security Agreement Supplement]   Cantor Fitzgerald Securities, as the Collateral Agent for   the Secured Parties referred to in the   Credit Agreement referred to below   [●]   [●]   Attn: [●]   Ladies and Gentlemen:   Reference is made to (i) Senior Secured Superpriority Debtor-in-Possession   Credit Agreement, dated as of July 27, 2015 (as it may hereafter be amended, amended and   restated, supplemented or otherwise modified from time to time, being the “Credit Agreement”)   with Cantor Fitzgerald Securities, as administrative agent and collateral agent and the Secured   Parties party thereto, and (ii) the U.S. Security Agreement dated as of July 27, 2015 (as   amended, amended and restated, supplemented or otherwise modified from time to time, the   “U.S. Security Agreement”) made by the Grantors from time to time party thereto in favor of the   Collateral Agent for the Secured Parties.  Terms defined in the Credit Agreement or the U.S.   Security Agreement and not otherwise defined herein are used herein as defined in the Credit   Agreement or the U.S. Security Agreement, as applicable.   SECTION 1.  Grant of Security.   The undersigned hereby grants to the Collateral Agent, for the ratable benefit of   the Secured Parties, a security interest in all of its right, title and interest in, to and under all of its   property and assets, tangible or intangible, wherever located and whether now or hereafter   existing or arising that constitute Collateral and all proceeds of Collateral.  The U.S. Security   Agreement is hereby incorporated herein by reference.  Supplementing schedules to the U.S.   Security Agreement listing the undersigned property and assets are annexed hereto.   SECTION 2.  Security for Obligations.     The grant of a security interest in, the Collateral by the undersigned under this   Security Agreement Supplement and the U.S. Security Agreement secures the payment of all   Obligations of the undersigned now or hereafter existing under or in respect of the Loan   Documents, whether direct or indirect, absolute or contingent, and whether for principal,   reimbursement obligations, interest, premiums, penalties, fees, indemnifications, contract causes   of action, costs, expenses or otherwise.  Without limiting the generality of the foregoing, this   Security Agreement Supplement and the U.S. Security Agreement secures the payment of all   amounts that constitute part of the Secured Obligations and that would be owed by the     

 

    2   49466791_7   undersigned to any Secured Party under the Loan Documents but for the fact that such Secured   Obligations are unenforceable or not allowable due to the existence of a bankruptcy,   reorganization or similar proceeding involving a Loan Party.   SECTION 3.  Representations and Warranties.  (a)  As of the date hereof, the   undersigned’s exact legal name, chief executive office, type of organization, jurisdiction of   organization and organizational identification number (if any) is set forth in the annexes attached   hereto.  As of the date hereof, the undersigned has used no trade names in the past five years   other than as listed on the annexes attached hereto.  As of the date hereof, within the five years   preceding the date hereof, the undersigned has not changed its name, chief executive office, type   of organization, jurisdiction of organization or organizational identification number from those   set forth in the annexes attached hereto.   (b)  As of the date hereof, all of the Equipment and Inventory of such Grantor is   located at the places specified therefor in the annexes attached hereto, other than (x) property in   transit between such locations, (y) property at a customer location, and (z) property out for repair   or refurbishment.  Such Grantor has exclusive possession and control of its Equipment and   Inventory, other than with respect to Inventory or Equipment (i) that is stored at any leased   premises or warehouse, or (ii) that is in transit (x) that is at a customer location, or (y) that is out   for repair or refurbishment.   (c)  As of the date hereof, the undersigned is not a beneficiary or assignee under   any letter of credit, other than the letters of credit described in the annexes attached hereto.   (d)  As of the date hereof, the undersigned hereby makes each other representation   and warranty set forth in the U.S. Security Agreement with respect to itself and the Collateral   granted by it.   SECTION 4.  Obligations Under the U.S. Security Agreement.  The undersigned   hereby agrees, as of the date first above written, to be bound as a Grantor by all of the terms and   provisions of the U.S. Security Agreement to the same extent as each of the other Grantors.  The   undersigned further agrees, as of the date first above written, that each reference in the U.S.   Security Agreement to an “Additional Grantor” or a “Grantor” shall also mean and be a   reference to the undersigned, that each reference to the “Collateral” or any part thereof shall also   mean and be a reference to the undersigned’s Collateral or part thereof, as the case may be, and   that each reference in the U.S. Security Agreement to a schedule shall also mean and be a   reference to a schedule attached hereto.   SECTION 5.  Governing Law.  This Security Agreement Supplement shall be   governed by, and construed in accordance with, the laws of the State of New York.     

 

   [Signature Page to Security Agreement Supplement]   49466791_7         Very truly yours,   [NAME OF ADDITIONAL GRANTOR]      By _______________________________    Title:        Address for notices:     _______________________     _______________________     _______________________    

 

   49466791_7   Exhibit D to the   U.S. Security Agreement   FORM OF HONG KONG SHARE PLEDGE DOCUMENTS   Attached.    

 

Execution version   325141902 v6         DATED     2015      Between       GTAT CORPORATION   (as Chargor)         and         CANTOR FITZGERALD SECURITIES, in its capacity as Collateral   Agent    (as Chargee)      _______________________________________   DEED OF SHARE CHARGE   _______________________________________           

 

Execution version   325141902 v6   CONTENTS   CLAUSE   1. Definitions and interpretation ........................................................................................ 1   2. Covenant to pay ............................................................................................................. 5   3. Grant of security ............................................................................................................ 5   4. Liability of the Chargor ................................................................................................. 6   5. Representations and warranties ..................................................................................... 6   6. Covenants ...................................................................................................................... 9   7. Voting rights and dividends ......................................................................................... 12   8. Powers of the Chargee ................................................................................................. 13   9. When security becomes enforceable ........................................................................... 15   10. Enforcement of security .............................................................................................. 15   11. Receiver ....................................................................................................................... 17   12. Powers of Receiver ...................................................................................................... 17   13. Delegation ................................................................................................................... 20   14. Application of proceeds ............................................................................................... 20   15. Costs and indemnity .................................................................................................... 21   16. Further assurance ......................................................................................................... 22   17. Power of attorney ........................................................................................................ 22   18. Release ........................................................................................................................ 23   19. Assignment and transfer .............................................................................................. 23   20. Set-off .......................................................................................................................... 23   21. Amendments, waivers and consents ............................................................................ 24   22. Severance .................................................................................................................... 24   23. Counterparts ................................................................................................................ 25   24. Further provisions ........................................................................................................ 25   25. Notices ......................................................................................................................... 26   26. Governing law and jurisdiction ................................................................................... 28        

 

   1   THIS  DEED (this “Deed”) is dated    2015   BETWEEN    (1) GTAT CORPORATION,  a corporation organised and existing under the laws of Delaware   with its place of business at 243 Daniel Webster Highway, Merrimack, NH 03054, U.S.A.   (the “Chargor”); and    (2) CANTOR FITZGERALD SECURITIES, a general partnership organised and existing   under the laws of New York with an address at 110 East 59th Street, New York, NY 10022,   U.S.A. (the “Chargee”).   RECITALS:   (A) Pursuant to the Senior Secured Superpriority DIP Credit Agreement (as defined below), the   Borrower and the Chargor as a Guarantor has requested the Lenders to, and the Lenders have   agreed to, extend a senior secured credit facility to the Borrower comprising of term loans in   the aggregate principal amount of up to US$95,000,000 (the “Facility”) on terms and subject   to the conditions as set forth therein.   (B) As a continuing security for the full and punctual payment and discharge of the Secured   Liabilities (as defined below), the Chargor has agreed to charge by way of first fixed charge,   in favour of the Chargee for the benefit of the Lenders (as defined below), inter alia, the   Shares, Additional Shares and Related Rights.    (C) It is a condition precedent under the Senior Secured Superpriority DIP Credit Agreement that   the Chargor shall duly execute this Deed in favour of the Chargee for the benefit of the   Lenders (as defined below).   NOW THIS DEED WITNESSED AS FOLLOWS:    1. DEFINITIONS AND INTERPRETATION   1.1 Definitions   Terms defined in the Senior Secured Superpriority DIP Credit Agreement shall, unless   otherwise defined in this Deed, have the same meaning in this Deed. In addition, the   following definitions shall apply:    Additional Shares: all  additional shares in the Company which may at any time hereafter be   subscribed for or acquired or held by, to the order of or on behalf of, the Chargor, arising   from or in connection with the Shares, including, without limitation all and any allotment,   accretion, benefit and advantage whatsoever at any time accruing in respect of all or any of   the Shares, including, without limitation, all shares and/or securities which may at any time be   issued and all moneys, rights or property which may at any time accrue or be offered (whether   by way of bonus, redemption, substitution, exchange, conversion, preference, option or   otherwise) in respect of any Share and/or any other shares in the Company of whatever class   in connection with the Shares which may at any time hereafter be subscribed for or acquired     

 

   2   or held by, to the order of or on behalf of, the Chargor, provided, however, that the Additional   Shares and the Shares shall not represent, in aggregate, in excess of 65% of the Company’s   issued share capital.   Business Day: a day other than a Saturday, Sunday or public holiday on which banks are   generally open for business in Hong Kong and the United States of America.   Chapter 11 Cases: has the meaning given to such term in the Senior Secured Superpriority   DIP Credit Agreement.   Charged Shares:    (a) the Shares;   (b) the Additional Shares; and    (c) all Related Rights.   Company: GT Advanced Technologies Limited, a limited liability company incorporated   under the laws of Hong Kong with company number 1371858 whose registered office is at   13/F, Tower 2, The Gateway. Harbour City, 25 Canton Road, Tsimshatsui, Kowloon, Hong   Kong.   Deed: this deed   Dispute: has the meaning ascribed to it in Clause 26.1.   Delegate: any person appointed by the Chargee or any Receiver pursuant to Clause 13, and   any person appointed as attorney of the Chargee, Receiver or Delegate.   Event of Default: has the meaning given to such term in the Senior Secured Superpriority   DIP Credit Agreement.   Facility: has the meaning ascribed to it in Recital (A).   Final DIP Order: has the meaning given to such term in the Senior Secured Superpriority   DIP Credit Agreement.   GAAP: has the meaning given to such term in the Senior Secured Superpriority DIP Credit   Agreement.   Hong Kong: the Hong Kong Special Administrative Region of the People’s Republic of   China.   Loan Documents: has the meaning given to such term in the Senior Secured Superpriority   DIP Credit Agreement.   Material Adverse Effect: has the meaning given to such term in the Senior Secured   Superpriority DIP Credit Agreement.   Permitted Liens: has the meaning given to such term in the Senior Secured Superpriority   DIP Credit Agreement.   Process Document: has the meaning ascribed to it in Clause 26.3.   Receiver: a receiver and manager, an administrator or (if the Chargee so specifies in the   relevant appointment) a receiver in each case of any or all of the Secured Assets appointed by   the Chargee under Clause 11.     

 

   3   Related Rights: any:   (d) dividend, interest or other distribution paid or payable in relation to any Share or   Additional Share; and   (e) right, money or property accruing, offered or issued at any time in relation to any   Share or Additional Share by way of redemption, substitution, exchange,   conversion, bonus, preference or otherwise, under option rights or otherwise.   Secured Assets: all or any part of the Charged Shares for the time being subject to any   Security constituted by this Deed.   Secured Liabilities: all present and future monies, obligations and liabilities of the Loan   Parties to the Lenders, whether actual or contingent and whether owed jointly or severally, as   principal or surety or in any other capacity, under or in connection with the Senior Secured   Superpriority DIP Credit Agreement or this Deed (including, without limitation, those arising   under Clause 24.3(b)), together with all interest (including, without limitation, default   interest) accruing in respect of such monies or liabilities.   Security: any mortgage, charge (whether fixed or floating, legal or equitable), pledge, lien,   assignment, hypothecation or other security interest securing any obligation of any person, or   any other agreement or arrangement having a similar effect and all encumbrances of every   kind and nature.   Security Period: the period starting on the date of this Deed and ending on the date on which   all the Secured Liabilities have been unconditionally and irrevocably paid and discharged in   full.   Senior Secured Superpriority DIP Credit Agreement: the Senior Secured Superpriority   Debtor-In-Possession Credit Agreement, dated on or around the date hereof, by and among   the Borrower and certain Subsidiaries of the Borrower as guarantors, the Lenders from time to   time party thereto and the Chargee as Administrative Agent and Collateral Agent thereunder,   as the same may be amended, restated, supplemented or otherwise modified, renewed or   replaced from time to time.   Shares: 72,852,000 ordinary shares in the capital of the Company representing 65% of its   issued share capital for the time being.   US$: the lawful currency of the United States of America.    1.2 Interpretation   In this Deed:   (a) Clause and Schedule headings are for ease of reference only and shall not affect the   interpretation of this Deed;   (b) a reference to a person shall include a reference to an individual, firm, company,   corporation, partnership, unincorporated body of persons, government, state or   agency of a state or any association, trust, joint venture or consortium (whether or   not having separate legal personality) and that person’s personal representatives,   successors, permitted assigns and permitted transferees;     

 

   4   (c) unless the context otherwise requires, words in the singular shall include the plural   and in the plural shall include the singular;   (d) unless the context otherwise requires, a reference to one gender shall include a   reference to the other genders;   (e) unless the context otherwise requires, a reference to a Clause or Schedule is to a   clause of, or schedule to, this Deed;   (f) an obligation on a party not to do something includes an obligation not to allow that   thing to be done;   (g) a reference to the “Chargor”, the “Chargee” or any “Party” shall include that   party’s successors, permitted assigns and permitted transferees;   (h) a reference to a statute or statutory provision is a reference to it as amended,   extended or re-enacted from time to time;   (i) a reference to a statute or statutory provision shall include all subordinate legislation   made under that statute or statutory provision;   (j) a reference to writing or written includes faxes and e-mails;   (k) a reference to this Deed (or any provision of it) or to any other agreement or   document referred to in this Deed is a reference to this Deed, that provision or such   other agreement or document as amended (in each case, other than in breach of the   provisions of this Deed) from time to time;   (l) any words following the terms including, include, in particular, for example or   any similar expression shall be construed as illustrative and shall not limit the sense   of the words, description, definition, phrase or term preceding those terms;   (m) a reference to an amendment includes a novation, re-enactment, supplement or   variation (and amended shall be construed accordingly);   (n) a reference to assets includes present and future properties, undertakings, revenues,   rights and benefits of every description;   (o) a reference to an authorisation includes an approval, authorisation, consent,   exemption, filing, licence, notarisation, registration and resolution;   (p) a reference to continuing in relation to an Event of Default means an Event of   Default that has not been waived or remedied; and    (q) a reference to a regulation includes any regulation, rule, official directive, request   or guideline (whether or not having the force of law) of any governmental, inter-   governmental or supranational body, agency, department or regulatory, self-   regulatory or other authority or organisation.   (r) if any conflict or inconsistency exists between this Deed and the Senior Secured   Superpriority DIP Credit Agreement or the Final DIP Order, the Senior Secured   Superpriority DIP Credit Agreement or the Final DIP Order, as applicable, shall   govern; provided, that it is understood and agreed that the imposition of additional   duties or obligations under this Deed shall not be deemed to be a conflict with the   Senior Secured Superpriority DIP Credit Agreement; and     

 

   5   (s) notwithstanding anything to the contrary in this Deed or any other Loan Document,   the provisions of this Deed shall be subject to the Final DIP Order in all respects.   1.3 Clawback   If an amount paid by the Borrower in respect of the Secured Liabilities is capable of being   avoided or otherwise set aside on the liquidation or administration of the Borrower or   otherwise, then that amount shall not be considered to have been irrevocably paid for the   purposes of this Deed.   1.4 Schedules   The Schedules form part of this Deed and shall have effect as if set out in full in the body of   this Deed. Any reference to this Deed includes the schedules.   2. COVENANT TO PAY    2.1 Covenant to pay   The Chargor shall, on demand and in accordance with the Loan Documents and the Final DIP   Order, pay to the Chargee and discharge the Secured Liabilities when they become due.   3. GRANT OF SECURITY   3.1 Fixed charge   Subject always to the Senior Secured Superpriority DIP Credit Agreement and as a continuing   security for the payment and discharge of the Secured Liabilities, the Chargor charges to the   Chargee by way of a first fixed charge:   (a) all the Shares and Additional Shares owned by it; and   (b) all Related Rights.   3.2 General    All the Security created under this Deed:   (a) is created in favour of the Chargee on trust and as trustee for itself and for the   Lenders;   (b) is created over the Charged Shares;   (c) is created by the Chargor as the absolute and sole legal and beneficial owner of the   Shares, and to the extent applicable, the other Charged Shares; and    (d) is continuing security for the payment and discharge of all the Secured Liabilities.     

 

   6   4. LIABILITY OF THE CHARGOR   4.1 Liability not discharged   The Chargor’s liability under this Deed in respect of any of the Secured Liabilities shall not   be discharged, prejudiced or affected by:   (a) any Security, guarantee, indemnity, remedy or other right held by, or available to,   the Chargee that is or becomes wholly or partially illegal, void or unenforceable on   any ground;   (b) any of the Lenders renewing, determining, varying or increasing any facility or other   transaction in any manner or concurring in, accepting or varying any compromise,   arrangement or settlement, or omitting to claim or enforce payment from any other   person; or   (c) any other act or omission, that, but for this Clause 4.1, might have discharged, or   otherwise prejudiced or affected, the liability of the Chargor.   4.2 Immediate recourse   The Chargor waives any right it may have to require the Chargee to enforce any Security or   other right, or claim any payment from, or otherwise proceed against, any other person before   enforcing this Deed against the Chargor.   5. REPRESENTATIONS AND WARRANTIES    5.1 Representations and warranties   The Chargor makes the representations and warranties set out in this Clause 5 to the Chargee.   5.2 Representations in respect of the Chargor   (a) The Chargor is a company duly incorporated, validly existing and in good standing   under the laws of its jurisdiction of incorporation, except to the extent that failure to   so qualify could not reasonably be expected to have a Material Adverse Effect.   (b) The obligations expressed to be assumed by the Chargor under this Deed are,   subject to any necessary stamping and registration, equitable principles, statute of   limitations and, reservations as to general principles of law affecting its obligations   of the type commonly referenced in legal opinions, legal, valid, binding and   enforceable obligations of the Chargor, and is and will continue to be effective   Security over all and every part of the Secured Assets in accordance with its terms..   (c) Subject to the entry of the Final DIP Order, the entry into and performance by the   Chargor of, and the transactions contemplated by, this Deed do not and will not   conflict with:     

 

   7   (i) any law or regulation applicable to it, except to the extent such conflict   could not reasonably be expected to have a Material Adverse Effect;   (ii) its memorandum and articles of association; or   (iii) any agreement or instrument binding upon it, or any of its assets, except to   the extent such conflict could not reasonably be expected to have a Material   Adverse Effect.   (d) Subject to any restriction or requirement arising on account of Chargor’s status as a   “debtor” under the Bankruptcy Code and subject to entry of the Final DIP Order, all   authorisations required:   (i) to enable the Chargor to lawfully enter into, exercise its rights and comply   with its obligations in this Deed and the transactions contemplated by this   Deed; and   (ii) to make this Deed admissible in evidence in its jurisdiction of incorporation,   have been obtained or effected and are in full force and effect.   (e) Subject to entry of the Final DIP Order, the Chargor has the power to enter into,   perform and deliver, and has taken all necessary actions to authorize its entry into,   performance and delivery of this Deed and the transactions contemplated by this   Deed.   (f) The entry into by the Chargor of this Deed constitutes, and the exercise by it of its   rights and performance of its obligations under this Deed will constitute, private and   commercial acts performed for private and commercial purposes.   (g) The Chargor will not be entitled to claim immunity from suit, execution, attachment   or other legal process in any proceedings taken in its jurisdiction of incorporation in   relation to this Deed.   (h) The choice of Hong Kong law as the governing law of this Deed will be recognised   and enforced in its jurisdiction of incorporation.   (i) Any judgment obtained in Hong Kong in relation to this Deed will be recognised   and enforced in the Chargor’s jurisdiction of incorporation.    (j) The Chargor’s obligations under this Deed constitute direct, unconditional,   unsubordinated and secured obligations and has or will have first ranking priority   and it is not subject to any prior ranking or pari passu ranking Security, except for   obligations under the Permitted Liens or those mandatorily preferred by law   applying to companies or individuals generally.   5.3 Shares   (a) The Shares are duly authorised, validly issued, fully paid or credited as fully paid,   non-assessable and not subject to any option to purchase pre-emption rights or   similar rights.     

 

   8   (b) The Shares represent 65% of the issued share capital of the Company for the time   being and no person has any option, warrant or other similar right to subscribe for   any shares of the Company.   (c) The Chargor is the sole legal and beneficial owner of the Shares, and to the extent   applicable, the other Charged Shares, free from any restrictions and of all Security   other than the Permitted Liens and the Security created by this Deed or the Final   DIP Order.   (d) Subject to the articles of association of the Company, the Shares and, to the extent   applicable, the other Charged Shares are within the disposition and control of the   Chargor and the terms of the Shares, and to the extent applicable, the other Charged   Shares do not:    (i) restrict or inhibit the ability of the Chargor to transfer the Shares and, to the   extent applicable, the other Charged Shares, or to grant or enforce any   Security in respect thereof constituted by this Deed; or   (ii) contain any option to purchase, rights of pre-emption or other similar rights.   5.4 No adverse claims   The Chargor has not received, or acknowledged notice of, any adverse claim by any person in   respect of the Secured Assets or any interest in them, other than the Chapter 11 Cases and as   set forth on Schedule 5.06 of the Senior Secured Superpriority DIP Credit Agreement.   5.5 No adverse covenants   Other than the Loan Documents and the Final DIP Order, there are no covenants, agreements,   reservations, conditions, interests, rights or other matters, that materially and adversely affect   the Secured Assets.   5.6 Avoidance of Security   No Security expressed to be created under this Deed is liable to be avoided, or otherwise set   aside, on the liquidation or administration of the Chargor or otherwise.   5.7 No breach of laws   To the knowledge of the Chargor, there is no breach of any law or regulation which materially   and adversely affects the Secured Assets.   5.8 Times for making representations and warranties   The representations and warranties set out in Clause 5.2 to Clause 5.8 are made by the   Chargor on the date of this Deed.     

 

   9   6. COVENANTS    6.1 Restrictions on disposal of the Charged Shares   The Chargor shall not at any time, except with the prior written consent of the Chargee or   except as permitted under the Senior Secured Superpriority DIP Credit Agreement or other   Loan Documents:   (a) create, allow to come into being, purport to create or permit to subsist any Security   on, or in relation to, any Secured Asset other than any Security created by this Deed   or any Permitted Liens;   (b) sell, assign, transfer, part with possession of or otherwise dispose of in any manner   (or purport to do so) all or any part of, or any interest in, the Secured Assets; or   (c) create or grant (or purport to create or grant) any interest in the Secured Assets in   favour of a third party.   6.2 Preservation of Secured Assets   (a) Except as permitted under the Senior Secured Superpriority DIP Credit Agreement   or other Loan Documents, the Chargor shall not do, or permit to be done, any act or   thing that:   (i) would or might jeopardise or otherwise prejudice the Security held by the   Chargee, or materially depreciate the Security held by the Chargee, or   materially diminish the value of any of the Secured Assets or the   effectiveness of the Security created by this Deed;   (ii) may result in the rights attaching to, or conferred by, all or any of the   Secured Assets being altered;    (iii) may result in any of the Secured Assets to be consolidated, sub-divided or   converted, or the other shares of the Company to be re-organised,   exchanged or repaid; or   (iv) may result in any further shares in the share capital of the Company to be   issued to any Person other than the Chargor.   6.3 Certain undertakings of the Chargor   During the Security Period, the Chargor shall, in respect of the Shares and, to the extent   applicable, the other Charged Shares accruing in respect thereof or relating thereto:   (a) defend the Charged Shares against any claim, action, notice or demands of all   persons at the cost and expense of the Chargor;   (b) except as provided in Section 2.05(b) of the Senior Secured Superpriority DIP   Credit Agreement, deliver to the Chargee all proceeds of any kind as may be   received by the Chargor in connection with any sale, transfer, redemption, seizure,     

 

   10   exercise of dissenters rights or other disposition of the Charged Shares whether   permitted by this Deed, the Loan Documents or otherwise;   (c) notify the Chargee promptly in writing of any change in the Chargor’s address for   service hereunder;   (d) pay all taxes, assessments and other charges which may be levied or assessed   against the Charged Shares, unless the same are being contested in good faith by   appropriate proceedings diligently conducted and adequate reserves in accordance   with GAAP are being maintained by the Chargor;   (e) exercise (or refrain from exercising) all voting and other rights and powers which   may be exercised by the Chargor as the legal and beneficial owner of the Charged   Shares subject to Clause 7.1(a);   (f) not take or accept any Security from the Company or, in relation to the Secured   Liabilities, from any third party, without first obtaining written consent from the   Chargee;   (g) (i) unless directed in writing to do so by the Chargee, not prove in any liquidation or   winding up of the Company until all the Secured Liabilities are paid in full and (ii) if   directed to prove by the Chargee in any liquidation or winding up of the Company   until all the Secured Liabilities are paid in full and if directed to prove by the   Chargee (or if the Chargor otherwise receives any payment or other benefit in   breach of this Deed) the Chargor shall hold all moneys received by it on trust for the   Chargee to satisfy the Secured Liabilities;   (h) notify the Chargee in writing with all relevant particulars within 3 Business Days:   (i) upon the acquisition by the Chargor of any Additional Shares and the   Chargor shall promptly deliver to and deposit with the Chargee all share   certificates, documents of title and any other documents and do all such   further acts or things, as specified in Clause 6.7(b) and as the Chargee may   reasonably require;   (ii) upon becoming aware of any intended resolution either of members or   directors of the Company pursuant to its articles of association:   (A) to amend its articles of association;   (B) to merge or consolidate with any other company;   (C) to make a disposition of more than fifty per cent (50%) of the assets   of the Company;   (D) to continue in another jurisdiction; or   (E) to go into voluntary liquidation; and   (i) upon receiving a written notice of any intended resolution as set forth in Clause   6.3(h)(ii) above, shall vote the Shares and any Additional Shares as directed by the   Chargee.   6.4 Chargor’s waiver of set-off     

 

   11   The Chargor waives any present or future right of set-off it may have in respect of the   Secured Liabilities (including sums payable by the Chargor under this Deed).   6.5 Compliance with laws and regulations   The Chargor shall comply with the requirements of any law and regulation relating to or   affecting the Secured Assets or the use of it or any part of them, except in such instances in   which (a) such requirements of law or regulation are being contested in good faith by   appropriate proceedings diligently conducted; or (b) the failure to comply therewith could not   reasonably be expected to have a Material Adverse Effect.    6.6 Enforcement of rights   The Chargor shall use its best endeavours to enforce any rights and institute, continue or   defend any proceedings relating to any of the Secured Assets which the Chargee may   reasonably require from time to time.   6.7 Title to Secured Assets   (a) The Chargor shall obtain all consents, waivers, approvals and permissions that are   necessary, under the articles of association (or otherwise) of the Company, for the   transfer of the Secured Assets to the Chargee or its nominee, or to a purchaser on   enforcement of the Security constituted by this Deed.   (b) The Chargor shall on the execution of this Deed (or it later, the date of acquisition of   the relevant Security Asset), or as the Chargee may direct:   (i) deliver to the Chargee all share certificates and other documents of title or   evidence of ownership of the Secured Assets;   (ii) deliver to the Chargee an instrument of transfer and a sold note,   substantially, in the form attached hereto as Exhibit A and Exhibit B,   respectively, relating to the Secured Assets duly completed and executed by   or on behalf of the Chargor but with the name of the transferee, number of   shares, the consideration and the date left blank; and    (iii) authorize Chargee (and its counsel and agents) at any time and from time to   time, at Chargor’s expense, to file in any filing office in any jurisdiction any   initial financing statements and amendments thereto,   The Chargee may, at any time that an Event of Default has occurred and is   continuing but not otherwise, complete and present those share transfer forms and   other documents to the Company for registration.    (c) The Chargor shall at any time and from time to time, upon the written request of the   Chargee, at the sole expense of the Chargor, promptly and duly execute and deliver   any and all such further instruments and documents and take such further actions as   Chargee may reasonably deem desirable to obtain the full benefits of this Deed and   of the rights and powers herein granted, including but not limited to filing any     

 

   12   financing or continuation statements under the UCC or other notices appropriate   under applicable law with respect to the security interests granted hereby.     6.8 Calls and other obligations   (a) Notwithstanding the Security created by this Deed, the Chargor shall promptly pay   all calls, instalments and other payments that may be or become due and payable in   respect of all or any part of the Secured Assets.   (b) If the Chargor fails to do so, the Chargee may, at its discretion but without   obligation, pay the calls, instalments or other payments on behalf of the Chargor.   (c) The Chargor shall, within 10 Business Days after request by the Chargee, reimburse   the Chargee for any payment made by it under this Clause 6.8.   (d) The Chargor shall comply with, and shall remain liable to perform, all of the other   conditions and obligations assumed by it in respect of all or any part of the Secured   Assets.   6.9 Further Undertakings of the Chargor   The Chargor shall:   (a) promptly following receipt, send to the Chargee copies of any notice (including   notices of meetings of the shareholders of the Company), circular, report, accounts   and any other document received by it from time to time that may materially affect   the Secured Assets;    (b) promptly notify the Chargee in writing of any action, claim, notice or demand made   by or against it in connection with all or any part of the Secured Assets or of any   fact, matter or circumstance which may be reasonably expected to give rise to such   an action, claim, notice or demand; and     (c) not vote in favour of a resolution to amend, modify or change articles of association   of the Company (except with the prior written consent of the Chargee or except   insofar as such amendment, modification or change does not affect the Security   created pursuant to this Deed).    7. VOTING RIGHTS AND DIVIDENDS   7.1 Voting rights and dividends- before enforcement   (a) Before an Event of Default has occurred and is continuing but without prejudice to   the other rights of the Chargee, the Chargor may exercise all voting and other rights   and powers in respect of the Secured Assets, provided that:   (i) it shall not do so in any way that would breach any provision of the Senior   Secured Superpriority DIP Credit Agreement or this Deed or for any   purpose inconsistent with the Senior Secured Superpriority DIP Credit   Agreement or this Deed; and     

 

   13   (ii) the exercise of, or failure to exercise, those voting rights or other rights and   powers would not have an adverse effect on the value of any of the Secured   Assets or otherwise prejudice the Chargee’s Security under this Deed.   (b) Before an Event of Default has occurred and is continuing, the Chargor may retain   and apply for its own use all dividends, interest and other monies paid or payable in   respect of the Secured Assets.   7.2 Voting rights and dividends - following an Event of Default   At any time that an Event of Default has occurred and is continuing, the Chargee may at its   discretion (in the name of the Chargor and without any further consent or authority from the   Chargor and irrespective of any direction given by the Chargor):   (a) exercise or refrain from exercising (or direct its nominee to exercise or refrain from   exercising) all voting rights and any other powers or rights in respect of the Secured   Assets, and the Chargor shall comply, for so long as the Secured Assets are   registered in its name, with any directions the Chargee may give, in its absolute   discretion, in respect of the exercise of those voting and other rights and powers;   (b) apply all dividends, interest or other monies paid or payable in respect of the   Secured Assets in accordance with Clause 14 and, if any such dividends, interest or   other monies are received by or on behalf of the Chargor, the Chargor shall hold all   such dividends, interest and other monies on trust for the Chargee and shall   immediately pay them to the Chargee or as it may direct;   (c) complete all instruments of transfer held by it in relation to the Secured Assets in   favour of itself or such other person as it may select and have the Secured Assets   transferred into its name or the name of its nominee or, as applicable, into an   account in its own name or the name of its nominee; and   (d) in addition to any other power created under this Deed, exercise or refrain from   exercising (or direct its nominee to exercise or refrain from exercising) all the   powers and rights conferred on or exercisable by the legal or beneficial owner of the   Secured Assets.   8. POWERS OF THE CHARGEE   8.1 Power to remedy   (a) The Chargee shall be entitled (but shall not be obliged) to remedy, at any time, a   breach by the Chargor of any of its obligations contained in this Deed.   (b) The Chargor irrevocably authorises the Chargee and its agents to do all things that   are necessary or desirable for that purpose.   (c) Any monies expended by the Chargee in remedying a breach by the Chargor of its   obligations contained in this Deed, shall be reimbursed by the Chargor to the   Chargee on a full indemnity basis and shall carry interest in accordance with Clause   15.1.     

 

   14   8.2 Exercise of rights   (a) The rights of the Chargee under Clause 8.1 are without prejudice to any other rights   of the Chargee under this Deed.   (b) The exercise of any rights of the Chargee under this Deed shall not, in the absence   of negligence or fraud, make the Chargee liable to account as a mortgagee in   possession.   8.3 Chargee has Receiver’s powers   To the extent permitted by law, any right, power or discretion conferred by this Deed on a   Receiver may, after the Security constituted by this Deed has become enforceable, be   exercised by the Chargee in relation to any of the Secured Assets whether or not it has taken   possession of any Secured Assets and without first appointing a Receiver or notwithstanding   the appointment of a Receiver.   8.4 No duties   The Chargee shall not, in respect of any of the Secured Assets, have any duty or incur any   liability for:   (a) ascertaining or taking action in respect of any calls, instalments, conversions,   exchanges, maturities, tenders or other matters relating to any Secured Assets or the   nature or sufficiency of any payment whether or not the Chargee has or is deemed to   have knowledge of such matters; or   (b) taking any necessary steps to preserve rights against prior parties or any other rights   relating to any of the Secured Assets.   8.5 Conversion of currency   (a) For the purpose of any of the Secured Liabilities, the Chargee may convert any   monies received, recovered or realised by it under this Deed from their existing   currencies of denomination into the currency of denomination of the Secured   Liabilities, in accordance with the provisions of the Senior Secured Superpriority   DIP Credit Agreement.   (b) Any such conversion shall be effected at the then prevailing spot selling rate of   exchange for such other currency against the existing currency.   (c) Each reference in this Clause 8.5 to a currency extends to funds of that currency   and, for the avoidance of doubt, funds of one currency may be converted into   different funds of the same currency.   8.6 New accounts   (a) If the Chargee receives, or is deemed to have received, notice of any subsequent   Security, or other interest, affecting all or part of the Secured Assets, the Chargee     

 

   15   may open a new account for the Chargor in the Chargee’s books. Without prejudice   to the Chargee’s right to combine accounts, no money paid to the credit of the   Chargor in any such new account shall be appropriated towards, or have the effect   of discharging, any part of the Secured Liabilities.   (b) If the Chargee does not open a new account immediately on receipt of the notice, or   deemed notice, under Clause 8.6(a), then, unless the Chargee gives express written   notice to the contrary to the Chargor, all payments made by the Chargor to the   Chargee shall be treated as having been credited to a new account of the Chargor   and not as having been applied in reduction of the Secured Liabilities, as from the   time of receipt or deemed receipt of the relevant notice by the Chargee.   8.7 Indulgence   The Chargee may, at its discretion, grant time or other indulgence or make any other   arrangement, variation or release with any person not being a party to this Deed (whether or   not such person is jointly liable with the Chargor) in respect of any of the Secured Liabilities   or of any other security for them without prejudice either to this Deed or to the liability of the   Chargor for the Secured Liabilities.   9. WHEN SECURITY BECOMES ENFORCEABLE   9.1 Event of Default   The Security constituted by this Deed shall become immediately enforceable after notice in   writing by the Chargee to the Chargor at any time after an Event of Default occurs for so long   as such Event of Default is continuing.   9.2 Discretion   After the Security constituted by this Deed has become enforceable, the Chargee may, in its   absolute discretion, enforce all or any part of that Security at the times, in the manner and on   the terms it thinks fit, and take possession of and hold or dispose of all or any part of the   Secured Assets.   10. ENFORCEMENT OF SECURITY   10.1 Enforcement powers   (a) The power of sale and other powers conferred on a mortgagee by law, as varied or   extended by this Deed, shall be immediately exercisable at any time after the   Security constituted by this Deed has become enforceable under Clause 9.1.   (b) Any restriction imposed by statute on the power of sale or the right of a mortgagee   to consolidate mortgages does not apply to the Security constituted by this Deed.     

 

   16   10.2 Prior Security   At any time after the Security constituted by this Deed has become enforceable, or after any   powers conferred by any Security having priority to this Deed shall have become exercisable,   the Chargee may:   (a) redeem that or any other prior Security;   (b) procure the transfer of that Security to it; and   (c) settle and pass any account of the holder of any prior Security.   The settlement and passing of any such account passed shall, in the absence of any manifest   error, be conclusive and binding on the Chargor. All monies paid by the Chargee to an   encumbrancer in settlement of any of those accounts shall, as from its payment by the   Chargee, be due from the Chargor to the Chargee on current account and shall bear interest at   the default rate of interest specified in the Senior Secured Superpriority DIP Credit   Agreement and be secured as part of the Secured Liabilities.   10.3 Protection of third parties   No purchaser, mortgagee or other person dealing with the Chargee, any Receiver or Delegate   shall be concerned to enquire:    (a) whether any of the Secured Liabilities have become due or payable, or remain   unpaid or undischarged;   (b) whether any power the Chargee, a Receiver or Delegate is purporting to exercise has   become exercisable or is properly exercisable; or   (c) how any money paid to the Chargee, any Receiver or any Delegate is to be applied.   10.4 Privileges   Each Receiver and the Chargee is entitled to all the rights, powers, privileges and immunities   on mortgagees and receivers.   10.5 No liability as mortgagee in possession   Neither the Chargee, any Receiver nor any Delegate shall, in the absence of negligence or   fraud, be liable to account as mortgagee in possession in respect of all or any of the Secured   Assets, nor shall any of them be liable for any loss on realisation of, or for any neglect or   default of any nature in connection with, all or any of the Secured Assets for which a   mortgagee in possession might be liable as such.   10.6 Conclusive discharge to purchasers     

 

   17   The receipt of the Chargee or any Receiver or Delegate shall be a conclusive discharge to a   purchaser and, in making any sale or other disposal of any of the Secured Assets or in making   any acquisition in the exercise of their respective powers, the Chargee, and every Receiver   and Delegate may do so for any consideration, in any manner and on any terms that it or he   thinks fit.   11. RECEIVER   11.1 Appointment   At any time after the Security constituted by this Deed has become enforceable, or at the   request of the Chargor, the Chargee may, without further notice, appoint by way of deed, or   otherwise in writing, any one or more persons to be a Receiver of all or any part of the   Secured Assets.   11.2 Removal   The Chargee may, without further notice, from time to time, by way of deed, or otherwise in   writing, remove any Receiver appointed by it and may, whenever it thinks fit, appoint a new   Receiver in the place of any Receiver whose appointment may for any reason have   terminated.   11.3 Remuneration   The Chargee may (acting reasonably)  fix the remuneration of any Receiver appointed, and   the remuneration of the Receiver shall be a debt secured by this Deed, to the extent not   otherwise discharged.   11.4 Power of appointment exercisable despite prior appointments   The power to appoint a Receiver (whether conferred by this Deed or by statute) shall be, and   remain, exercisable by the Chargee despite any prior appointment in respect of all or any part   of the Secured Assets.   11.5 Agent of the Chargor   Any Receiver appointed by the Chargee under this Deed shall be the agent of the Chargor and   the Chargor shall be solely responsible for the contracts, engagements, acts, omissions,   defaults, losses and remuneration of that Receiver and for liabilities incurred by that Receiver.   The agency of each Receiver shall continue until the Chargor goes into liquidation and after   that the Receiver shall act as principal and shall not become the agent of the Chargee.   12. POWERS OF RECEIVER     

 

   18   12.1 General   (a) Any Receiver appointed by the Chargee under this Deed shall, in addition to the   powers conferred on him by statute, have the powers set out in Clause 12.2 to   Clause 12.13.   (b) If there is more than one Receiver holding office at the same time, each Receiver   may (unless the document appointing him states otherwise) exercise all of the   powers conferred on a Receiver under this Deed individually and to the exclusion of   any other Receiver.   (c) Any exercise by a Receiver of any of the powers given by Clause 12 may be on   behalf of the Chargor, the directors of the Chargor or himself.   12.2 Employ personnel and advisers   A Receiver may provide services and employ, or engage any managers, officers, servants,   contractors, workmen, agents, other personnel and professional advisers on any terms, and   subject to any conditions, that he reasonably thinks fit. A Receiver may discharge any such   person or any such person appointed by the Chargor.   12.3 Remuneration   A Receiver may charge and receive any sum by way of remuneration (in addition to all costs,   charges and expenses incurred by him) that the Chargee may reasonably prescribe or agree   with him.   12.4 Realise Secured Assets   A Receiver may collect and get in the Secured Assets or any part of them in respect of which   he is appointed, and make any demands and take any proceedings as may seem expedient for   that purpose, and take possession of the Secured Assets with like rights.   12.5 Dispose of Secured Assets   A Receiver may sell, exchange, convert into money and realise (whether absolutely or   conditionally) all or any of the Secured Assets in respect of which he is appointed in any   manner (including, without limitation, by public auction or private sale) and generally on any   terms and conditions as he thinks fit. A Receiver may promote, or concur in promoting, a   company to purchase the Secured Assets to be sold.   12.6 Valid receipts   A Receiver may give effectual and valid receipt for dividends, other distributions and all   monies, assets and other considerations (howsoever obtained and which otherwise come into     

 

   19   the hands of the Receiver in the exercise of any power conferred under this Deed) and execute   all assurances and things that may be proper or desirable for realising any of the Secured   Assets.   12.7 Make settlements   A Receiver shall have the right to enforce, adjust, settle or compromise the amount or   payment of any agreements, receivables and other related contracts related to the Secured   Assets (including directing such obligors to make payments of all amounts due or to become   due thereunder directly to the Receiver) in the same manner and to the same extent as the   Chargor might have done, and to otherwise exercise all rights with respect to such   agreements, receivables and related contracts.   12.8 Bring proceedings   A Receiver may bring, prosecute, enforce, defend and abandon all actions, suits and   proceedings in relation to any of the Secured Assets as he thinks fit and for all or any of the   purposes in this Clause 12.   12.9 Borrow   A Receiver may, for any of the purposes authorised by this Clause 12, raise money by   borrowing from the Chargee (or from any other person) either unsecured or on the security of   all or any of the Secured Assets in respect of which he is appointed on any terms that he   thinks fit (including, if the Chargee consents, terms under which that security ranks in priority   to this Deed).   12.10 Redeem prior Security   A Receiver may redeem any prior Security, procure the transfer of that Security to it and   settle and pass the accounts to which the Security relates. Any accounts so settled and passed   shall be, in the absence of any manifest error, conclusive and binding on the Chargor, and the   monies so paid shall be deemed to be an expense properly incurred by the Receiver.   12.11 Delegation   A Receiver may delegate his powers in accordance with this Deed.   12.12 Absolute beneficial owner   A Receiver may, in relation to any of the Secured Assets, exercise all powers, authorisations   and rights he would be capable of exercising, and do all those acts and things, as an absolute     

 

   20   beneficial owner could exercise or do in the ownership of the Secured Assets or any part of   the Secured Assets.   12.13 Incidental powers   A Receiver may do any other acts and things that he:   (a) may consider desirable or necessary for recovering, protecting or realising any of   the Secured Assets;   (b) may consider incidental or conducive to any of the rights or powers conferred on a   Receiver under or by virtue of this Deed or law; or   (c) lawfully may or can do as agent for the Chargor.   13. DELEGATION   13.1 Delegation   The Chargee or any Receiver may delegate (either generally or specifically) by power of   attorney or in any other manner to any person any right, power, authority or discretion   conferred on it by this Deed (including the power of attorney granted under Clause 17.1).   13.2 Terms   The Chargee and each Receiver may delegate on any terms and conditions (including the   power to sub-delegate) that it thinks fit.   13.3 Liability   Neither the Chargee nor any Receiver shall, if it has exercised due care in selecting the   Delegate, be in any way liable or responsible to the Chargor for any loss or liability arising   from any act, default, omission or misconduct on the part of any Delegate.   14. APPLICATION OF PROCEEDS   14.1 Order of application of proceeds   Subject to the claims of any person having prior rights thereto, all monies received by the   Chargee, a Receiver or a Delegate pursuant to this Deed, after the Security constituted by this   Deed has become enforceable, shall be applied in the following order of priority:   (a) first, in or towards payment of or provision for all costs, charges and expenses   incurred by or on behalf of the Chargee (and any Receiver, Delegate, attorney or   agent appointed by it) under or in connection with this Deed, and of all   remuneration due to any Receiver under or in connection with this Deed;     

 

   21   (b) second, in or towards payment of or provision for the Secured Liabilities in   accordance with section 8.03 of the Senior Secured Superpriority DIP Credit   Agreement; and   (c) lastly, in payment of the surplus (if any) to the Chargor or other person entitled to it.   14.2 Suspense account   All monies received by the Chargee, a Receiver or a Delegate under this Deed may, for so   long as it is necessary or advisable to preserve the Chargee’s claim to the Secured Liabilities,   be credited to any interest-bearing suspense account.   15. COSTS AND INDEMNITY   15.1 Costs   The Chargor shall, promptly and in any event within five Business Days of demand, pay to, or   reimburse, the Chargee and any Receiver all reasonable costs, charges, expenses, taxes and   liabilities of any kind (including, without limitation, reasonable legal, printing and out-of-   pocket expenses) incurred by the Chargee, any Receiver or any Delegate in connection with:   (a) this Deed or the Secured Assets;   (b) taking, holding, protecting, perfecting, preserving or enforcing (or attempting to do   so) any of the Chargee’s, a Receiver’s or a Delegate’s rights under this Deed; or   (c) taking proceedings for, or recovering, any of the Secured Liabilities,   together with interest, which shall accrue and be payable (without the need for any demand   for payment being made) from the date on which the relevant cost or expense was paid until   full discharge of that cost or expense (whether before or after judgment, liquidation, winding   up or administration of the Chargor) at the rate and in the manner specified in section 11.04(a)   of the Senior Secured Superpriority DIP Credit Agreement.   15.2 Indemnity   The Chargor shall indemnify and hold harmless the Chargee, each Receiver and each   Delegate, and their respective employees and agents against all liabilities, costs, expenses,   damages and losses (including but not limited to any direct or indirect losses, loss of profit,   loss of reputation and all interest, penalties and legal costs and all other professional costs and   expenses) suffered or incurred by any of them arising out of or in connection with:   (a) the exercise or purported exercise of any of the rights, powers, authorities or   discretions vested in them under this Deed or by law in respect of the Secured   Assets;   (b) taking, holding, protecting, perfecting, preserving or enforcing (or attempting to do   so) the Security constituted by this Deed; or     

 

   22   (c) any default or delay by the Chargor in performing any of its obligations under this   Deed.   The foregoing shall be in addition to any rights, privileges and immunities of the Chargee set   forth in the Senior Secured Superpriority DIP Credit Agreement, which are incorporated   herein mutatis mutandis.   15.3 Concerning the Chargee   Cantor Fitzgerald Securities is entering into this Deed solely in its capacity as Collateral   Agent under the Senior Secured Superpriority DIP Credit Agreement and not in its individual   or corporate capacity.   16. FURTHER ASSURANCE   16.1 Further assurance   The Chargor shall, at its own expense, take whatever action the Chargee or any Receiver may   reasonably require for:   (a) creating, perfecting or protecting the Security intended to be created by this Deed;   (b) facilitating the realisation of any of the Secured Assets; or   (c) facilitating the exercise of any right, power, authority or discretion exercisable by   the Chargee or any Receiver in respect of any of the Secured Assets,   including, without limitation, (if the Chargee or Receiver thinks it expedient) the execution of   any transfer, conveyance, assignment or assurance of all or any of the assets forming part of   (or intended to form part of) the Secured Assets (whether to the Chargee or to its nominee)   and the giving of any notice, order or direction and the making of any registration.   17. POWER OF ATTORNEY   17.1 Appointment of attorneys   By way of Security, the Chargor irrevocably appoints the Chargee, every Receiver and every   Delegate separately to be the attorney of the Chargor and, in its name, on its behalf and as its   act and deed, to execute any documents and do any acts and things that, upon the occurrence   and during the continuance of an Event of Default or as otherwise set forth in the Senior   Secured Superpriority DIP Credit Agreement::   (a) the Chargor is required but has failed to within 3 Business Days execute and do   under this Deed; and/or     

 

   23   (b) any attorney deems proper or desirable in exercising any of the rights, powers,   authorities and discretions conferred by this Deed or by law on  the Chargee, any   Receiver or any Delegate.   17.2 Ratification of acts of attorneys   The Chargor ratifies and confirms, and agrees to ratify and confirm, anything that any of its   attorneys may do in the proper and lawful exercise, or purported exercise, of all or any of the   rights, powers, authorities and discretions referred to in Clause 17.1.   18. RELEASE   Subject to Clause 24.3, on the expiry of the Security Period (but not otherwise), the Chargee   shall, at the request and cost of the Chargor, take whatever action is necessary to release the   Secured Assets from the Security constituted by this Deed and promptly return all documents   referred to in Clauses 6.3(h) and 6.7(b) to the Chargor.   19. ASSIGNMENT AND TRANSFER   19.1 Assignment by Chargee   (a) At any time, without the consent of the Chargor, the Chargee may assign or transfer   all or any of its rights and obligations under this Deed to its successor as Collateral   Agent.   (b) The Chargee may disclose to any actual or proposed assignee or transferee any   information in its possession that relates to the Chargor, the Secured Assets and this   Deed that the Chargee considers appropriate, subject to a confidentiality undertaking   duly executed by the assignee or transferee.   19.2 Assignment by Chargor   The Chargor may not assign any of its rights, or transfer any of its rights or obligations, under   this Deed without the written consent of the Chargee.   20. SET-OFF   20.1 Chargee’s right of set-off   The Chargee’s may at any time set off any liability of the Chargor to the Chargee against any   liability of the Chargee to the Chargor, whether either liability is present or future, liquidated   or unliquidated, and whether or not either liability arises under this Deed in accordance with   the provisions of the Senior Secured Superpriority DIP Credit Agreement.   20.2 No obligation to set off     

 

   24   The Chargee is not obliged to exercise its rights under Clause 20.1. If, however, it does   exercise those rights it must promptly notify the Chargor of the set-off that has been made.   20.3 Exclusion of Chargor’s right of set-off   All payments made by the Chargor to the Chargee under this Deed shall be made without any   set-off, counterclaim, deduction or withholding (other than any deduction or withholding of   tax as required by law).   21. AMENDMENTS, WAIVERS AND CONSENTS   21.1 Amendments   No amendment of this Deed shall be effective unless it is in writing and signed by, or on   behalf of, each party (or its authorised representative).   21.2 Waivers and consents   (a) A waiver of any right or remedy under this Deed or by law, or any consent given   under this Deed, is only effective if given in writing by the waiving or consenting   party and shall not be deemed a waiver of any other breach or default. It only   applies in the circumstances for which it is given and shall not prevent the party   giving it from subsequently relying on the relevant provision.   (b) A failure or delay by a party to exercise any right or remedy provided under this   Deed or by law shall not constitute a waiver of that or any other right or remedy,   prevent or restrict any further exercise of that or any other right or remedy or   constitute an election to affirm this Deed. No single or partial exercise of any right   or remedy provided under this Deed or by law shall prevent or restrict the further   exercise of that or any other right or remedy. No election to affirm this Deed by the   Chargee shall be effective unless it is in writing.   21.3 Rights and remedies   The rights and remedies provided under this Deed are cumulative and are in addition to, and   not exclusive of, any rights and remedies provided by law.   22. SEVERANCE   If any provision (or part of a provision) of this Deed is or becomes invalid, illegal or   unenforceable, it shall be deemed modified to the minimum extent necessary to make it valid,   legal and enforceable. If such modification is not possible, the relevant provision (or part of a   provision) shall be deemed deleted. Any modification to or deletion of a provision (or part of   a provision) under this Clause shall not affect the legality, validity and enforceability of the   rest of this Deed.     

 

   25   23. COUNTERPARTS   (a) This Deed may be executed in any number of counterparts, each of which when   executed and delivered shall constitute a duplicate original, but all the counterparts   shall together constitute one deed.   (b) Transmission of an executed counterpart of this Deed (but for the avoidance of   doubt not just a signature page) by fax or e-mail (in PDF, JPEG or other agreed   format) shall take effect as delivery of an executed counterpart of this Deed. If either   method of delivery is adopted, without prejudice to the validity of the Deed thus   made, each party shall provide the others with the original of such counterpart as   soon as reasonably possible thereafter.   (c) No counterpart shall be effective until each party has executed and delivered at least   one counterpart.   24. FURTHER PROVISIONS   24.1 Independent security   This Deed shall be in addition to, and independent of, any other Security or guarantee that the   Chargee may hold for any of the Secured Liabilities at any time. No prior Security held by the   Chargee over the whole or any part of the Secured Assets shall merge in the Security created   by this Deed.   24.2 Continuing security   (a) This Deed shall remain in full force and effect during the Security Period as a   continuing security for the Secured Liabilities, despite any settlement of account, or   intermediate payment, or satisfaction of any part of the Secured Liabilities, unless   and until the Chargee discharges this Deed in writing.   (b) The obligations of the Chargor hereunder shall not be discharged or affected by:   (i) any time (whether as to payment or otherwise) or other indulgence given by   any of the Lenders or the Chargee to any of the Loan Parties, or any other   person, in respect of any of their (or any other person’s) obligations under   the Loan Documents; or   (ii) any variation of any obligation of the Company or the Chargor, or any other   person, under the Loan Documents or any document referred to therein   (whether or not the Chargor are a party to or cognisant of the same); or   (iii) any dissolution, winding-up or corporate reorganization of the Company, the   Chargor, or any other person; or   (iv) any transfer or extinction of any of the Secured Liabilities by any law,   regulation, decree, judgment, order or similar instrument; or   (v) any invalidity, illegality or unenforceability of any obligation of the   Company, the Chargor, or any other person under the Loan Documents; or     

 

   26   (vi) any variation, release, discharge, non-enforcement or non-perfection of any   other guarantee or Security for the obligations of the Loan Parties under the   Loan Documents; or   (vii) any other act, omission or thing which, but for this provision, would or   might constitute a legal or equitable discharge or defence of a surety.   24.3 Discharge conditional   Any release, discharge or settlement between the Chargor and the Chargee shall be deemed   conditional on no payment or Security received by the Lenders in respect of the Secured   Liabilities being avoided, reduced or ordered to be refunded pursuant to any law relating to   insolvency, bankruptcy, winding up, administration, receivership or otherwise. In the event of   such avoidance, reduction or refund, despite any such release, discharge or settlement:   (a) the Chargee or its nominee may retain this Deed and the Security created by or   pursuant to it; and   (b) the Chargee may recover the value or amount of such Security or payment from the   Chargor subsequently as if the release, discharge or settlement had not occurred.   24.4 Certificates and Determinations   A certificate or determination by the Chargee as to any amount for the time being due to it   from the Chargor shall be, in the absence of any manifest error, conclusive evidence of the   amount due.   25. NOTICES   25.1 Communications in writing   Each notice or other communication required to be given to a party under or in connection   with this Deed shall be in writing in English, and unless otherwise stated, may be made by   facsimile, electronic mail or letter.   25.2 Address    The address, fax number and electronic mail address (and the department or officer, if any,   for whose attention the communication is to be made) of each party to this Deed for any   communication or document to be made or delivered under or in connection with this Deed is:   (a) if to the Chargor:      

 

   27   GTAT Corporation   243 Daniel Webster Highway   Merrimack, NH 03054   U.S.A.   Attention:  Hoil Kim (General Counsel)   Facsimile:  +1 (603) 595-6993   Email: hoil.kim@gtat.com    With a copy to:    Ropes & Gray LLP    1211 Avenue of the Americas   New York, NY 10036-8704    U.S.A.   Attention:  Alex Zeltser   Facsimile:  +1 (646) 728-2973   Email: alex.zeltser@ropesgray.com    (b) if to the Chargee:    Cantor Fitzgerald Securities    110 East 59th Street   New York, NY 10022    U.S.A.   Attention:  N. Horning  (GT Advanced Technologies)   Facsimile:  +1 (646) 219-1180   Email: nhorning@cantor.com    With a copy to:    Akin Gump Strauss Hauer & Feld LLP   One Bryant Park   Bank of America Tower   New York, NY 10036-6745   U.S.A.   Attention:  Meng Ru   Telephone:  +1 (212) 872-1036   Facsimile:  +1 (212) 872-1002   Email: mru@akingump.com       and      Shipman & Goodwin LLP    One Constitution Plaza   Hartford, CT 06103   U.S.A.     

 

   28   Attention:  Nathan Plotkin   Telephone:  +1 (860) 251-5320   Facsimile:  +1 (860) 251-5212   Email: nplotkin@goodwin.com   or to any other address or fax number as is notified in writing by one party to the   other from time to time.   25.3 Delivery   Any communication or document made or delivered by one party to another party under or in   connection with this Deed will only be effective:   (a) if by way of fax, one (1) Business Day after being sent by facsimile (with   confirmation of successful transmission issued from the sender’s facsimile   machine);   (b) if by way of letter, when it has been left at the relevant address, or two (2) Business   Days after being sent by internationally recognized overnight courier (e.g., FedEx or   DHL), or five (5) Business Days after being deposited in the post postage prepaid in   an envelope addressed to it at that address; or   (c) if by way of electronic mail, one (1) Business Day after being sent by electronic   mail (provided that no subsequent delivery failure notification is issued by the   sender’s email system),    or on such later date if the recipient gives verifiable proof of receipt on such later date.   A notice or other communication given as described in this Clause 25.3 on a day that is not   a Business Day, or after normal business hours, in the place it is received, shall be deemed   to have been received on the next Business Day.   26. GOVERNING LAW AND JURISDICTION   26.1 Governing law   This Deed and any dispute or claim  arising out of or in connection with it or its subject   matter or formation (including non-contractual disputes or claims) shall be governed by and   construed in accordance with the Laws of Hong Kong (a “Dispute”).   26.2 Jurisdiction   (a) The courts of Hong Kong have non-exclusive jurisdiction to settle any Dispute.     

 

   29   (b) The courts of Hong Kong are the most appropriate and convenient courts to settle   any Dispute in connection with this Deed.  The Chargor agrees not to argue to the   contrary and waives objection to those courts on the grounds of inconvenient forum   or otherwise in relation to proceedings in connection with this Deed.   (c) This Clause 26 is for the benefit of the Lenders and the Chargee only. To the extent   allowed by Law, the Lenders or the Chargee may take:     (i) proceedings in any other court; and    (ii)  concurrent proceedings in any number of jurisdictions.    (d) References in this Clause 26 to a dispute in connection with this Deed includes any   dispute as to the existence, validity or termination of this Deed.   26.3 Service of process   A document which starts or is otherwise required to be served in connection with any legal   action or proceedings relating to a Dispute (a “Process Document”) may be served in the   same way as notices in accordance with Clause 25.2. This Clause does not prevent a Process   Document being served in any other manner permitted by law.    26.4 Waiver of immunity   (a) The Chargor irrevocably and unconditionally:   (i) agrees not to claim any immunity from proceedings brought by the Lenders   or the Chargee against the Chargor in relation to this Deed and to ensure that   no such claim is made on its behalf;   (ii) consents generally to the giving of any relief or the issue of any process in   connection with those proceedings; and   (iii) waives all rights of immunity in respect of it or its assets.      IN WITNESS WHEREOF this DEED has been executed and delivered by the Chargor and the   Chargee as a deed on the day and year first above written.     

 

   [GTAT Corporation - Signature page to Deed of Share Charge]      EXECUTED and DELIVERED as a   DEED under the common seal of       GTAT CORPORATION      in the presence of :            .......................................   Name:       Address:       Occupation:      )   )   )   )   )   )            .......................................   Director / authorised signatory                    

 

   [Cantor Fitzgerald Securities - Signature page to Deed of Share Charge]      SIGNED, SEALED and   DELIVERED as a DEED by                                     __________________________   for and on behalf of    CANTOR FITZGERALD   SECURITIES       in the presence of :            .......................................   Name:       Address:       Occupation:      )   )   )   )   )   )   )   )   )            .......................................   Partner   CANTOR FITZGERALD SECURITIES                     

 

      Exhibit A      Form of Instrument of Transfer         

 

INSTRUMENT OF TRANSFER   GT Advanced Technologies Limited    (極特先進科技有限公司)      We, GTAT CORPORATION, of 243 Daniel Webster Highway, Merrimack, NH 03054, U.S.A., in   consideration of                             paid to us by CANTOR FITZGERALD SECURITIES of 110 E.   59th Street, 7th Floor, New York, NY 10022, U.S.A. (“the said Transferee”), do hereby transfer to the   said Transferee the 7,285,200 Ordinary Shares (“the said Shares”) standing in our name in the register   of members of GT Advanced Technologies Limited (極特先進科技有限公司) to hold unto the said   Transferee, his Executors, Administrators or Assigns, subject to the several conditions upon which we   hold the same at the time of execution hereof.  And we the said Transferee do hereby agree to take the   said Shares subject to the same conditions.   Witness to our hands the      day of                Witness’s signature ....................................................     Name: .........................................................................   Address:  .................................................................... ................................................   Occupation:  ...............................................................  For and on behalf of             GTAT CORPORATION                 Witness’s signature ....................................................   Name:  ........................................................................   Address:  .................................................................... ................................................   Occupation:  ...............................................................                        For and on behalf of   CANTOR FITZGERALD   SECURITIES                                                                                                                         

 

      Exhibit B      Form of Bought and Sold Notes           

 

SOLD NOTE      Name of Purchaser (Transferee): CANTOR FITZGERALD SECURITIES   Address: 110 E. 59th Street, 7th Floor, New York, NY 10022, U.S.A.   Occupation: General partnership   Name of Company in which the shares are to be transferred: GT Advanced Technologies Limited    (極特先進科技有限公司)           Number of Shares: 7,285,200 Ordinary Shares   Consideration Received:                  For and on behalf of              GTAT CORPORATION        ___________________________         (Transferor)   Place of execution: __________________________   Dated __________________________   ________________________________________________________________________   BOUGHT NOTE      Name of Seller (Transferor): GTAT CORPORATION    Address: 243 Daniel Webster Highway, Merrimack, NH 03054, U.S.A.   Occupation: Corporation   Name of Company in which the shares are to be transferred: GT Advanced Technologies Limited    (極特先進科技有限公司)      Number of Shares: 7,285,200 Ordinary Shares   Consideration Paid:              For and on behalf of              CANTOR FITZGERALD SECURITIES        ___________________________         (Transferee)       Place of execution: __________________________   Dated __________________________     

 

   1   49466791_7   Exhibit E to the   U.S. Security Agreement   FORM OF GLOBAL INTERCOMPANY NOTE   New York, New York   Date:  _______, 20[  ]   FOR VALUE RECEIVED, each of the undersigned, to the extent a borrower   from time to time with respect to any loan or advance (including trade payables) (a “Loan”) from   any other entity listed on the signature page (each, in such capacity, a “Payor”), hereby promises   to pay to such other entity listed below (each, in such capacity, a “Payee”), at the time specified   on the schedule attached hereto with respect to such loan (or if there is no such schedule, on   demand), and in lawful money of the United States of America, or in such other currency as   agreed to by such Payor and such Payee, in immediately available funds, at such location as a   Payee shall from time to time designate, the unpaid principal amount of all Loans made by such   Payee to such Payor.  Each Payor promises also to pay interest on the unpaid principal amount of   all such loans and advances in like money at said location from the date of such loans and   advances until paid at such rate per annum as shall be reflected on the Schedule or as otherwise   agreed upon from time to time by such Payor and such Payee.  The terms and conditions of one   or more Loans may be set forth on a schedule to be attached to this note (“Note”) to memorialize   the agreement of the Payor and Payee with respect to such Loan(s), in which case the terms and   conditions specified in the schedule shall govern as between the Payor and Payee; provided, that   such terms and conditions may not be inconsistent with the provisions of this Note.   This Note is the Global Intercompany Note referred to in that certain U.S.   Security Agreement, dated as of July 27, 2015 (as amended, restated, extended, supplemented or   otherwise modified in writing from time to time, the “U.S. Security Agreement”), among GT   ADVANCED TECHNOLOGIES INC., the other Grantors listed on the signature pages thereof,   and CANTOR FITZGERALD SECURITIES (“CANTOR”), as collateral agent (together with   any successor collateral agent appointed pursuant to Article IX of the Credit Agreement, dated as   of July 27, 2015 (as it may hereafter be amended, amended and restated, supplemented or   otherwise modified from time to time, the “Credit Agreement”; the terms defined therein being   used herein as therein defined) with each lender from time to time party thereto, and Cantor as   Administrative Agent, and is subject to the terms thereof, shall be pledged by each Payee   pursuant to the U.S. Security Agreement or the Hong Kong Collateral Documents, as the case   may be, to the extent required pursuant to the terms thereof.   Each Payee is hereby authorized to record all loans and advances made by it to   any Payor (all of which shall be evidenced by this Note), and all repayments or prepayments   thereof, in its books and records, such books and records constituting prima facie evidence of the   accuracy of the information contained therein.  For the avoidance of doubt, this Note as between   each Payor and each Payee contains additional terms to any intercompany loan agreement   between them and this Note does not in any way replace such intercompany loans between them   nor does this Note in any way change the principal amount of any intercompany loans between   them.     

 

   2   49466791_7   Each Payor hereby waives presentment, demand, protest or notice of any kind in   connection with this Note.  All payments under this Note shall be made without offset,   counterclaim or deduction of any kind.   This Note shall be binding upon each Payor and its successors and assigns, and   the terms and provisions of this Note shall inure to the benefit of each Payee and its successors   and assigns, including subsequent holders hereof.     From time to time after the date hereof, and as reflected on the Schedule,   additional subsidiaries of Holdings may become parties hereto (as Payor and/or Payee, as the   case may be) by executing a counterpart signature page to this Note (each additional subsidiary,   an “Additional Party”).  Upon delivery of such counterpart signature page to the Payees, notice   of which is hereby waived by the other Payors, each Additional Party shall be a Payor and/or a   Payee, as the case may be, and shall be as fully a party hereto as if such Additional Party were an   original signatory hereof.  Each such additional Payee which is a Loan Party has pledged its   interests under this Note pursuant to the U.S. Security Agreement to secure the Secured   Obligations.  Each Payor expressly agrees that its obligations arising hereunder shall not be   affected or diminished by the addition or release of any other Payor or Payee hereunder.  This   Note shall be fully effective as to any Payor or Payee that is or becomes a party hereto regardless   of whether any other Person becomes or fails to become or ceases to be a Payor or Payee   hereunder.   THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN   ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.   [signature pages follow]     

 

   [Signature Page to Global Intercompany Note]   49466791_7         By:       Name:   Title:     

 

   H - 1   Form of Intellectual Property Security Agreement   EXHIBIT H         FORM OF INTELLECTUAL PROPERTY SECURITY AGREEMENT         See Exhibit A of Exhibit G.ex102gtatintercompanyset

EXECUTION VERSION   INTERCOMPANY SETTLEMENT AGREEMENT    This Intercompany Settlement Agreement (the “Intercompany Settlement Agreement”),   dated as of July 20, 2015, is entered into by and among GT Advanced Technologies Limited   (“GT Hong Kong”), a Hong Kong limited liability company, GTAT Corporation (“GTAT   Corp.”), a Delaware corporation, and GT Advanced Equipment Holding LLC (“GT SPE”), a   Delaware limited liability company.  GT Hong Kong, GTAT Corp., and GT SPE are referred to   herein each as a “Party” and, collectively, as the “Parties.”   RECITALS   WHEREAS, on October 6, 2014 (the “Petition Date”), GTAT Corp., GT Hong Kong, GT   SPE, GT Advanced Technologies, Inc. (“GT Parent”), GT Equipment Holdings, Inc., Lindbergh   Acquisition Corp., GT Sapphire Systems Holding LLC, GT Advanced Cz LLC, and GT   Sapphire Systems Group LLC (collectively, “GTAT” or the “Debtors”) filed chapter 11 cases   (the “Chapter 11 Cases”) in the United States Bankruptcy Court for the District of New   Hampshire (the “Bankruptcy Court”);   WHEREAS, GTAT Corp. and GT SPE collectively own more than 2,100 advanced   sapphire furnaces (“ASF Furnaces”), and GT Hong Kong owns approximately 240 ASF   Furnaces;   WHEREAS, GT Hong Kong and GTAT Corp. are parties to: (a) that certain License   Agreement, effective as of April 1, 2011, as modified by that certain Sapphire Transfer Pricing   Analysis and Report for Fiscal Year Ended March 31, 2012, issued January 21, 2013 (the “ASF   License Agreement”); (b) that certain Agreement for Sharing Development Costs, effective as of   April 11, 2011 (the “Cost Sharing Agreement”); (c) that certain License Agreement, effective as   of July 5, 2010, as modified by that certain Amendment No. 1 to License Agreement, effective as   of April 3, 2011, and as further modified by that certain Polysilicon Transfer Pricing Analysis   and Report for the Calendar Year Ended December 31, 2013 (the “Poly/DSS License   Agreement”); (d) that certain Management and Administrative Services Agreement, effective as   of July 5, 2010 (the “2010 Services Agreement”); and (e) that certain Management and   Administrative Services Agreement, effective as of April 3, 2011 (the “2011 Services   Agreement” and, together with the ASF License Agreement, the Cost Sharing Agreement, the   Poly/DSS License Agreement, and the 2010 Services Agreement, the “Prepetition Intercompany   Agreements”);   WHEREAS, under the ASF License Agreement, GTAT Corp. granted GT Hong Kong,   among other things, the exclusive right and license (without reservation of right to GTAT Corp.)   to make, have made, assemble, have assembled, use, sell, and/or import ASF Furnaces;   WHEREAS, under the Cost Sharing Agreement, GTAT Corp. and GT Hong Kong   agreed, among other things, to share the costs of the development of improvements to the   original technology platform licensed under the ASF License Agreement (such improvements,   the “Improvements”), and GTAT Corp. and GT Hong Kong each received the exclusive right   and licenses (without reservation of right of the other party) to make, use, sell and/or import,     

 

2   copy, display, create derivative works, or otherwise exploit the Improvements within each   party’s respective territory;   WHEREAS, under the DSS/Poly License Agreement, GTAT Corp. granted GT Hong   Kong, among other things, a nonexclusive right and license to make, have made, assemble, have   assembled, use, sell, and/or import directional solidification systems and reactors for the   production of polysilicon in all countries outside of the United States;   WHEREAS, under the 2010 Services Agreement and the 2011 Services Agreement   (together, the “Services Agreements”), GTAT Corp. agreed to provide services to GT Hong   Kong upon request, including marketing services, administrative and headquarter services,   commercial services, legal services, and other services as requested;   WHEREAS, following entry into the ASF License Agreement and the Cost Sharing   Agreement, (a) GTAT Corp. shared certain ASF Furnace technology with GT Hong Kong, (b)   GTAT Corp. and GT Hong Kong developed certain Improvements to the ASF Furnace   technology, and (c) GT Hong Kong acquired the exclusive license to sell certain ASF Furnace   technology outside the United States pursuant to the Cost Sharing Agreement;   WHEREAS, GTAT Corp. asserts that (a) it did not provide the most recent version of   165 kg ASF Furnace technology to GT Hong Kong prior to the Petition Date and (b) even if it   has a legal obligation to provide such technology to GT Hong Kong, GT Hong Kong must first   pay its share of the development costs for such technology under the Cost Sharing Agreement;   WHEREAS, for GT Hong Kong to acquire rights in the most recent version of the 165 kg   technology, it would have to assume the Cost Sharing Agreement, which, GTAT Corp. asserts,   would require GT Hong Kong to pay GTAT Corp. the associated cure costs of approximately   $126.3 million for its share of the development costs;   WHEREAS, ASF Furnaces that utilize the most recent technology also rely upon the   underlying, earlier technology, in which GT Hong Kong holds the exclusive licenses outside the   United States;   WHEREAS, under the current structure of the ASF License Agreement and the Cost   Sharing Agreement, GTAT Corp., GT SPE, and GT Hong Kong require each other’s cooperation   in order to sell any of their ASF Furnaces outside of the United States;   WHEREAS, GTAT Corp. estimates (as of June 1, 2015) that (a) if GT Hong Kong were   to assume the Prepetition Intercompany Agreements, GT Hong Kong would owe to GTAT Corp.   aggregate cure costs of approximately $131.5 million and (b) GT Hong Kong owes to GTAT   Corp. approximately $25.8 million (through Q2 2015) on account of certain intercompany claims   arising after the Petition Date (the “Intercompany Administrative Expense Claim”);   WHEREAS, both GTAT Corp. and GT Hong Kong desire to assume the Prepetition   Intercompany Agreements, as amended, subject to the terms and conditions in this Intercompany   Settlement Agreement; and     

 

3   WHEREAS, following extensive good faith, arm’s-length negotiations among GTAT   Corp., GT SPE, GT Hong Kong, certain unaffiliated holders of notes issued by GT Parent, and   other parties in interest, GTAT Corp., GT SPE, and GT Hong Kong have agreed to enter into this   Intercompany Settlement Agreement, which resolves, among other things: (a) cure payments due   upon assumption of the Prepetition Intercompany Agreements; (b) administrative and other   claims owed by GT Hong Kong to GTAT Corp.; (c) ongoing performance of the parties under   the Prepetition Intercompany Agreements; (d) intercompany sales of ASF Furnaces by GTAT   Corp. and GT SPE to GT Hong Kong; and (e) allocation and payment of professional fees   incurred in the Chapter 11 Cases.   NOW, THEREFORE, in consideration of the mutual promises hereinafter set forth, the   Parties agree as follows:   1. EFFECTIVENESS   1.1 Effectiveness.  The effectiveness of this Intercompany Settlement Agreement and the   obligations of the Parties are conditioned upon entry of an order, substantially in the form   attached to the Debtors’ motion, dated July 6, 2015 [Docket No. 1998] (the “Approval   Order”), approving, among other things, the Parties’ entry into this Intercompany   Settlement Agreement.  The date on which the Approval Order is entered on the   Bankruptcy Court’s docket is referred to herein as the “Approval Date”.   2. CASH PAYMENT; ISSUANCE OF PRIORITY NOTE   2.1 Cash Payment.  In partial satisfaction of the Intercompany Administrative Expense   Claim, within one business day after the Approval Date, GT Hong Kong shall pay to   GTAT Corp. the amount of $10 million in immediately available funds and in U.S.   dollars (the “Cash Payment”).    2.2 Priority Note.  In satisfaction of the remaining Intercompany Administrative Expense   Claim (after application of the Cash Payment), within one business day after the   Approval Date, GT Hong Kong shall issue to GTAT Corp. the Priority Note,   substantially in the form attached hereto as Exhibit A (the “Priority Note”).    2.3 Debenture.  Concurrently with the issuance of the Priority Note and the Contingent Note   (as defined below), GT Hong Kong, GTAT Corp., and GT SPE shall enter into that   certain Debenture, substantially in the form attached hereto as Exhibit B.   3. ASSUMPTION OF PREPETITION INTERCOMPANY AGREEMENTS;   ISSUANCE OF CONTINGENT NOTE   3.1 Assumption of Prepetition Intercompany Agreements.  Subject to entry of the Approval   Order and satisfaction of the cure obligations in accordance with Section 3.2 hereof,   GTAT Corp. and GT Hong Kong shall both assume:      

 

4   (a) the ASF License Agreement, as amended by that certain First Amendment to the   ASF License Agreement, substantially in the form attached hereto as Exhibit C;   (b) the Cost Sharing Agreement, as amended by that certain First Amendment to the   Cost Sharing Agreement, substantially in the form attached hereto as Exhibit D;   (c) the Poly/DSS License Agreement, as amended by that certain Second   Amendment to the Poly/DSS License Agreement, substantially in the form   attached hereto as Exhibit E;   (d) the 2010 Services Agreement, as amended by that certain First Amendment to   Management and Administrative Services Agreement (Effective as of July 5,   2010), substantially in the form attached hereto as Exhibit F; and   (e) the 2011 Services Agreement, as amended by that certain First Amendment to   Management and Administrative Services Agreement (Effective as of April 3,   2011), substantially in the form attached hereto as Exhibit G.   3.2 Contingent Note.  To cure the asserted prepetition defaults under the Prepetition   Intercompany Agreements, within one business day after the Approval Date, GT Hong   Kong shall issue to GTAT Corp. the Contingent Note, substantially in the form attached   hereto as Exhibit H (the “Contingent Note”).     3.3 Following payment in full of the Contingent Note, GT Hong Kong shall resume   performance of the Cost Sharing Agreement and the ASF License Agreement and   payment of its share of costs incurred thereunder in accordance with the terms of the Cost   Sharing Agreement (as amended), the ASF License Agreement (as amended), and the   Debtors’ practices prior to the Petition Date.     4. CONTINGENT PAYMENT   4.1 Contingent Payment.  Until the Contingent Note has been paid in full, including all   interest accrued thereupon, upon the sale of an ASF Furnace by GT Hong Kong, GT   Hong Kong will make a payment to GTAT Corp. (a “Contingent Payment”) calculated as   follows:   (a) if such ASF Furnace is owned by GT Hong Kong as of the date hereof, an amount   equal to 40% of the sale price of such ASF Furnace; provided, however, that the   amount payable by GT Hong Kong to GTAT Corp. shall not be less than the   applicable Apple Repayment Amount (as defined in that certain Amended and   Restated Adequate Protection and Settlement Agreement, dated as of December   15, 2014 with Apple and Platypus, as approved by the Bankruptcy Court by order   dated December 17, 2015 (the “Apple Settlement Agreement”)); or   (b) if such ASF Furnace is owned by GTAT Corp. or GT SPE as of the date hereof (a   “Mesa ASF Furnace”), an amount equal to the sale price of such ASF Furnace     

 

5   less the sum of: (i) $10,375; (ii) the Mesa ASF Price (as defined in the   Intercompany Sales Agreement); (iii) any selling and installation costs incurred   by GT Hong Kong with respect to such ASF Furnace; and (iv) 5% of the sale   price of such ASF Furnace (which selling and installation costs and 5% shall be   retained by GT Hong Kong).   Provided, however, that if GT Hong Kong does not receive the full sale price for the sale   of an ASF Furnace in a single installment, GT Hong Kong shall pay the Contingent   Payment to GTAT Corp. ratably as and when GT Hong Kong receives each installment   of the sale price.   For the avoidance of doubt, GT Hong Kong’s obligation to pay the Contingent Payment   to GTAT Corp. in respect of the sale of a Mesa ASF Furnace is in addition to GT Hong   Kong’s obligations under the Intercompany Sales Agreement (as defined below).   4.2 Application of Contingent Payment.  The Contingent Payment shall be the sole payment   due from GT Hong Kong to GTAT Corp. for the following obligations and shall be   applied in the following order:    (a) to the extent the Contingent Payment is on account of a sale of a Mesa ASF   Furnace, the royalty payment due under the ASF License Agreement;    (b) the payable due under the Cost Sharing Agreement from and after the Approval   Date (to be calculated in accordance with the Cost Sharing Agreement as   amended by the First Amendment to the Cost Sharing Agreement); and    (c) the amortization of the Contingent Note.   4.3 Pre-Approval Order Proceeds.  Any proceeds that have been received by GT Hong Kong   on account of the sale of ASF Furnaces since the Petition Date but prior to the Approval   Date shall be treated in accordance with this Intercompany Settlement Agreement as if   received following entry of the Approval Order.   4.4 Poly/DSS License Agreement and Services Agreements.  From and after entry of the   Approval Order, GT Hong Kong will perform its ongoing obligations to make payment to   GTAT Corp. as and when due for payments contemplated by the Poly/DSS License   Agreement (as amended) and the Services Agreements (as amended).    5. INTERCOMPANY SALES AGREEMENT   5.1 Concurrently with entry into this Intercompany Settlement Agreement, GTAT Corp., GT   SPE, and GT Hong Kong shall enter into that certain Intercompany Sales Agreement,   substantially in the form attached hereto as Exhibit I (the “Intercompany Sales   Agreement”).     

 

6   6. CHAPTER 11 MATTERS   6.1 Professional Fees.  From and after entry of the Approval Order, GT Hong Kong shall   reimburse GTAT Corp. for 15% of the chapter 11 professional fees incurred in these   cases, within 3 business days of the Debtors’ payment thereof to the professionals and   notice to GT Hong Kong.  For the avoidance of doubt, except as provided in this   Intercompany Settlement Agreement: (i) GTAT Corp. and GT Hong Kong shall each   remain fully responsible for paying their respective direct and ordinary administrative   costs incurred in their chapter 11 cases; and (ii) following emergence from chapter 11,   GTAT Corp. and GT Hong Kong shall each remain fully responsible for paying their   respective direct and ordinary expenses.   6.2 Chapter 11 Plan.  The Parties agree that (i) the Priority Note will be ascribed the value of   the amount outstanding under such note (including accrued interest) for plan distribution   purposes and (ii) the Parties will not take the position that the Contingent Note should not   be valued for plan distribution purposes.  The amounts set forth in this Intercompany   Settlement Agreement shall not be subject to impairment in a plan of reorganization for   GTAT Corp. or GT Hong Kong, except in the case that substantive consolidation is   ordered and then only to the extent that such court order provides for such impairment;   provided, however, for the avoidance of doubt, that nothing in this Intercompany   Settlement Agreement, the Approval Order, or any of the documents entered into in   connection herewith shall prevent any party from raising any arguments (other than any   arguments that the asserted claims and liabilities resolved by the Intercompany   Settlement Agreement should not have been settled in the amounts set forth in such   agreement and its exhibits) regarding the value of the Contingent Note being other than   the face value of the Contingent Note for plan distribution purposes.  Notwithstanding the   amendments to the ASF License Agreement, the Cost Sharing Agreement, the Poly/DSS   License Agreement, the 2010 Service Agreement, and the 2011 Services Agreement as   provided for in Section 3.1 of this Intercompany Settlement Agreement, for purposes of   plan value allocation, such agreements shall be presumed to be renewed.   6.3 Pledge of Priority Note and Contingent Note.  Subject to entry of the Approval Order and   the order approving DIP Financing (as defined below), GTAT Corp. will pledge the   Priority Note and Contingent Note as security for GTAT Corp.’s obligations under the    DIP Financing.  “DIP Financing” means the debtor in possession financing to be   provided by certain holders of the 3.00% Senior Convertible Notes due 2017 and 3.00%   Senior Convertible Notes issued by GT Parent.   7. MISCELLANEOUS   7.1 Apple Repayment Amount.  GTAT Corp. will pay the Apple Repayment Amount (as   defined in the Apple Settlement Agreement) for each ASF Furnace sold by GT Hong   Kong, and will benefit from the release of a lien on a Mesa ASF Furnace (as defined in   the Apple Settlement Agreement).  GT Hong Kong shall have no liability to GTAT Corp.   for any portion of the Apple Repayment Amount.     

 

7   7.2 Intellectual Property.  Attached hereto as Exhibit J is a chart summarizing the intellectual   property of the Debtors with focus on the rights in such intellectual property of GTAT   Corp and/or GT Hong Kong, as the case may be.  To the extent intellectual property   owned by either GTAT Corp. or GT Hong Kong (or their respective subsidiaries) is not   subject to a license agreement currently, and future sales requiring a license become   likely, the Parties’ expectation is that GTAT Corp. and GT Hong Kong will enter into a   customary license agreement on terms mutually satisfactory to GTAT Corp. and GT   Hong Kong, with the reasonable consent of the lenders under the DIP Financing (to the   extent required under the DIP Financing) if there are still outstanding obligations under   the DIP Financing at the time.   7.3 No Third-Party Beneficiaries.  This Intercompany Settlement Agreement is for the sole   benefit of the Parties and their respective successors and assigns and nothing herein,   express or implied, is intended to or shall confer upon any other person any legal or   equitable right, benefit, or remedy of any nature whatsoever.   7.4 No Waiver.  The Parties do not waive or release any claims except to the extent   specifically agreed to in this Intercompany Settlement Agreement, including, but not   limited to, any value received by GTAT Corp. from GT Hong Kong’s subsidiaries.  For   the avoidance of doubt, the Parties acknowledge and agree that as of the date hereof,   other than as addressed by this Intercompany Settlement Agreement, there are no   outstanding claims between and among them under the Prepetition Intercompany   Agreements.   7.5 Modifications.  No term or provision of this Intercompany Settlement Agreement may be   amended or waived except in writing signed by the Parties that are to be affected by such   amendment or waiver.   7.6 Entire Agreement.  This Intercompany Settlement Agreement (including the exhibits   hereto), constitutes the entire agreement of the Parties with respect to the subject matter   contained herein, and supersedes all prior and contemporaneous understandings and   agreements, both written and oral, with respect to such subject matter.   7.7 Governing Law; Submission to Jurisdiction.  This Intercompany Settlement Agreement   and all of the rights of the Parties arising out of or related to the transactions that are the   subject hereof shall be governed by and construed in accordance with the laws of the   State of New Hampshire, USA.  All actions and proceedings arising out of or relating to   this Intercompany Settlement Agreement shall be heard and determined in the   Bankruptcy Court, or if the Bankruptcy Court no longer has jurisdiction or abstains, then   in the state courts of New Hampshire sitting in Manchester or, to the extent subject matter   jurisdiction exists therefor, the United States District Court for the District of New   Hampshire, and the Parties irrevocably submit to the exclusive jurisdiction of such courts   in respect of any such actions or proceedings.    <Signature Pages to Follow>        

 

    

 

    

 

      Exhibits      A Priority Note   B Debenture   C First Amendment to ASF License Agreement   D First Amendment to Cost Sharing Agreement   E Second Amendment to Poly/DSS License Agreement   F First Amendment to 2010 Services Agreement   G First Amendment to 2011 Services Agreement   H Contingent Note   I Intercompany Sales Agreement   J Intellectual Property     

 

      Exhibit A      Priority Note         

 

EXECUTION VERSION   PRIORITY NOTE   $22,500,000.00 July 20, 2015   For value received, GT Advanced Technologies Limited (“GT Hong Kong” or “Maker”),   a Hong Kong limited liability company, hereby promises to pay to GTAT Corporation, a   Delaware corporation (“GTAT Corp.” and, together with any transferee permitted under the   terms hereof, “Holder”), no event later than the Maturity Date (as defined herein), the principal   amount of $22,500,000.00, together with interest thereon calculated in accordance with the   provisions of this promissory note (as amended, restated, supplemented, or otherwise modified   from time to time, the “Note”).   1. Definitions.   1.1 “2010 Services Agreement” means that certain Management and Administrative   Services Agreement, effective as of July 5, 2010, between GTAT Corp. and GT Hong Kong, as   amended by that certain First Amendment to Management and Administrative Services   Agreement (Effective as of July 5, 2010), dated as of July 20, 2015.   1.2 “2011 Services Agreement” means that certain Management and Administrative   Services Agreement, effective as of April 3, 2011, between GTAT Corp. and GT Hong Kong, as   amended by that certain First Amendment to Management and Administrative Services   Agreement (Effective as of April 3, 2011), dated as of July 20, 2015.   1.3 “ASF Furnaces” means advanced sapphire furnaces.   1.4 “ASF License Agreement” means that certain License Agreement, by and   between GTAT Corp. and GT Hong Kong, effective as of April 1, 2011, as modified by that   certain Sapphire Transfer Pricing Analysis and Report for the Fiscal Year Ended March 31,   2012, issued January 21, 2013, and as amended by that certain First Amendment to ASF License   Agreement, dated as of July 20, 2015.   1.5 “Bankruptcy Code” means title 11 of the United States Code, as in effect from   time to time.   1.6 “Business Day” means any day that is not a Saturday, Sunday, or other day on   which banks are authorized or required to close in the state of New York.   1.7 “Chapter 11 Cases” means the voluntary chapter 11 bankruptcy cases initiated by   GT Advanced Technologies Inc. and its affiliated debtors in the Court, which are jointly   administered under Case No. 14-11916-HJB.   1.8 “Contingent Note” means that certain Contingent Note made by GT Hong Kong   in favor of GTAT Corp. of even date herewith (as amended, restated, supplemented, or otherwise   modified from time to time).     

 

2   1.9 “Cost Sharing Agreement” means that certain Agreement  for Sharing   Development Costs, by and between GTAT Corp. and GT Hong Kong, effective as of April 1,   2011, as amended by that certain First Amendment to Cost Sharing Agreement, dated as of July   20, 2015.    1.10 “Court” means the United States Bankruptcy Court for the District of New   Hampshire.   1.11 “Debenture” means that certain Debenture between GT Hong Kong, GTAT   Corp., and GT SPE, dated as of July 20, 2015.   1.12 “Debtors” means GT Advanced Technologies Inc. and its affiliated debtors in the   Chapter 11 Cases.   1.13 “DIP Financing” means the debtor in possession financing to be provided by   certain holders of the 3.00% Senior Convertible Notes due 2017 and 3.00% Senior Convertible   Notes issued by GT Advanced Technologies Inc.   1.14 “Dollars” or “$” means United States dollars.   1.15 “Event of Default” has the meaning set forth in Section 7.1 hereof.   1.16 “GT SPE” means GT Advanced Equipment Holding LLC.   1.17 “Intercompany Settlement Agreement” means that certain Intercompany   Settlement Agreement, dated July 20, 2015, by and among GTAT Corp., GT Hong Kong, and   GT SPE.   1.18 “Intercompany Sales Agreement” means that certain Intercompany Sales   Agreement, dated July 20, 2015, by and among GTAT Corp., GT Hong Kong, and GT SPE.   1.19 “Maturity Date” means the earlier of the (i) date on which an Event of Default   occurs and (ii) date that is two years from the date hereof.    1.20 “Obligations” means all principal, interest, fees (if any), charges, expenses,   attorneys’ fees, and any other sum chargeable to Maker under this Note.   1.21 “Poly/DSS License Agreement” means that certain License Agreement, by and   between GTAT Corp. and GT Hong Kong, effective as of July 5, 2010, as amended by that   certain Amendment No. 1 to License Agreement, effective as of April 3, 2011, as further   modified by that certain Polysilicon Transfer Pricing Analysis and Report for the Calendar Year   Ended December 31, 2013), and as further amended by that certain First Amendment to   Poly/DSS License Agreement, dated as of July 20, 2015.   1.22 “Priority Note Collateral” means all of GT Hong Kong’s assets, whether   consisting of real, personal, tangible, or intangible property (including 100% of the outstanding   share of capital stock of any subsidiaries of GT Hong Kong and any and all intercompany claims     

 

3   and receivables, whether arising prior to the date hereof or thereafter) and, in each case, the   proceeds of any of the foregoing.   2. Interest.  The Note shall bear interest on the outstanding principal amount thereof at a   rate per annum equal to 12.5%, to be paid in kind on a monthly basis; provided that any such   interest paid in kind shall accrue and be capitalized and be added to the aggregate principal   balance of this Note in arrears on a monthly basis.   3. Payment of Principal and Interest on Note.   3.1 Payment on Maturity Date.  On the Maturity Date, Maker shall pay, in cash, the   outstanding principal and accrued interest on this Note.     3.2 No Amortization.  This Note shall not amortize prior to the Maturity Date.   3.3 No Prepayment.  This Note may not be voluntarily prepaid prior to the Maturity   Date.   4. Treatment of Note; Set-Off; Taxes.     4.1 The Obligations incurred under this Note shall be treated as allowed   administrative expense claims under sections 503(b) and 507(a)(2) of the Bankruptcy Code   against Maker in the Chapter 11 Cases, which allowed claim shall not be subject to setoff or   recoupment.   4.2 All payments to be made to Holder under this Note shall be made free and clear of   and (save as required by law) without any deduction for or on account of any tax, withholding,   charges, set-off or counterclaim (except for any income or profit tax).  If Maker is required by   law to make a deduction or withholding (except for any income or profit tax) from any payment   made under this Note, then the sum payable by Maker in respect of which such deduction or   withholding is required to be made shall be increased to the extent necessary to ensure that, after   the making of such deduction or withholding (including any deduction or withholding applicable   to additional sums payable under this Section 4.2), Holder receives and retains (free from any   liability in respect of any such deduction or withholding) a net sum equal to the sum which it   would have received and so retained had no such deduction or withholding been made or been   required to be made.  If Maker makes any payment under this Note in respect of which it is   required by law to make any deduction or withholding (except for any income or profit tax), then   it shall pay the full amount to be deducted or withheld to the relevant taxation or other authority   within the time allowed for such payment under applicable law and shall deliver to Holder,   within thirty (30) calendar days after it has made such payment to the applicable authority, an   original receipt or other appropriate evidence issued by such authority evidencing the payment to   such authority of all amounts so required to be deducted or withheld from such payment.   4.3 For the avoidance of doubt, Holder shall have full recourse to Maker for the   outstanding amount of the Obligations.     

 

4   5. Covenants   5.1 Total cash disbursements made by GT Hong Kong, excluding, without   duplication, (i) cash expenditures with respect to fully executed purchase orders that will be   accounted for as costs of goods sold when revenue is recognized, provided, that for cash   expenditures beginning on July 1, 2015, such expenditures related to each fully executed   purchase order shall not exceed the total revenue to be recognized over the life of the applicable   fully executed purchase order (irrespective of any required revenue deferrals), (ii) payments to   GTAT Corp. and any cash withholding taxes related to such payments that are royalty payments,   (iii) costs related directly to the shipping and installation of sold ASF Furnaces and sold furnace   components (including cash taxes related directly to such shipping and installation), (iv) costs   related directly to seed purchases pursuant to the Seed Agreement (as defined in the Debtors’   motion, dated March 30, 2015 [Docket No. 1544]), and (v) payments of certain amounts to Kerry   Logistics in accordance with the Stipulation and Agreed Order entered by the Bankruptcy Court   [Docket No. 1668], shall not exceed (a) $4.5 million in Q3 fiscal year 2015 (commencing July 5,   2015 and ending September 26, 2015), (b) $3.75 million in Q4 fiscal year 2015 (commencing   September 27, 2015 and ending December 31, 2015), and (c) $2.50 million per every fiscal   quarter thereafter (Q1 fiscal year 2016 commencing January 1, 2016 and ending April 2, 2016   and Q2 fiscal year 2016 commencing April 3, 2016 and ending July 2, 2016).   5.2 GT Hong Kong shall provide monthly cash reports to GTAT Corp. with copies to   the legal and financial advisors of GTAT Corp., GT SPE, the lenders under the DIP Financing,   and the official committee of unsecured creditors appointed in the Chapter 11 Cases.   6. Security Interest   6.1 Maker hereby grants to Holder a first priority security interest in the Priority Note   Collateral to secure all of Maker’s Obligations.  Maker hereby authorizes Holder to file financing   statements describing the Priority Note Collateral and to take any and all other steps necessary or   advisable to perfect or protect such security interest.   6.2 To secure all of Maker’ Obligations, Maker also grants to Holder a floating   charge in the Priority Note Collateral, pursuant to the Debenture; provided, however, that   nothing in the Debenture shall be deemed or interpreted to modify the rights set forth in this   Note.   6.3 The security interest securing this Note shall be (i) senior to the security interest   securing the Contingent Note and (ii) senior to the security interest securing the Intercompany   Sales Agreement.    6.4 Maker agrees to execute any further documents, and to take any further actions,   reasonably requested by Holder to evidence or perfect the security interests granted under this   Article 6, to maintain the perfection and priority of these security interests, or to effectuate the   rights granted to Holder in this Article 6.     

 

5   7. Events of Default.   7.1 Definition.  For purposes of this Note, an “Event of Default” shall be deemed to   have occurred if:   (a) Maker fails to pay at the Maturity Date the full amount of principal   payment and interest then accrued on this Note;    (b) An Event of Default has occurred under the Contingent Note;   (c) GT Hong Kong is in material breach of any of its obligations under this   Note (other than the failure to pay at the Maturity Date the full amount of principal and interest   then accrued on this Note), the Intercompany Settlement Agreement, the ASF License   Agreement, the Cost Sharing Agreement, the Poly/DSS License Agreement, the 2010 Services   Agreement, or the 2011 Services Agreement, and such breach is not cured within 10 days after   GTAT Corp. provided notice of such breach to GT Hong Kong;    (d) GTAT Corp. and its direct and indirect subsidiaries organized in the   United States have less than $22,500,000 in unrestricted cash;   (e) The Bankruptcy Court enters an order authorizing the sale of all or   substantially all assets of GTAT Corp. at a time when the DIP Financing will not have been   repaid in full on or before consummation of such a sale; or   (f) The Chapter 11 Case of either GTAT Corp. or GT Hong Kong is   converted to a case under chapter 7 of the Bankruptcy Code.   7.2 Consequences of Events of Default.   (a) If an Event of Default has occurred, the aggregate principal amount of this   Note (together with all accrued interest thereon and all other amounts due and payable with   respect thereto) shall become immediately due and payable without any action on the part of   Holder, and Maker shall immediately pay to Holder all amounts due and payable with respect to   this Note.   (b) If an Event of Default has occurred, Holder may pursue any and all   remedies available at law (including, but not limited to, those available under the provisions of   the New York Uniform Commercial Code and those set forth in the Debenture) or in equity to   enforce the security interests granted hereunder by Maker to Holder, including, without   limitation:   (i) file suit and obtain judgment and, in conjunction with any action,   seek any ancillary remedies provided by law, including levy of   attachment and garnishment,   (ii) demand that Maker make the Priority Note Collateral available to   Holder as it may direct (and Maker hereby agrees to comply with   such demand), and       

 

6   (iii) with or without taking possession, sell, lease, or otherwise dispose   of the Priority Note Collateral at public or private sale in   accordance with the New York Uniform Commercial Code,   which remedies may be pursued separately, successively, or simultaneously.   (c) Holder shall also have any other rights that Holder may have been   afforded under any contract or agreement at any time and any other rights that Holder may have   pursuant to applicable law.   (d) Maker hereby waives diligence, presentment, protest and demand, and   notice of protest and demand, dishonor, and nonpayment of this Note, and expressly agrees that   this Note, or any payment hereunder, may be extended from time to time and that Holder hereof   may accept security for this Note or release security for this Note, all without in any way   affecting the liability of Maker hereunder.   (e) The rights and remedies of Holder under this Note are cumulative.  Holder   shall have all other rights and remedies not inconsistent herewith as provided under the New   York Uniform Commercial Code, by law, or in equity.  No exercise by Holder of one right or   remedy shall be deemed an election, and no waiver by Holder of any Event of Default shall be   deemed a continuing waiver.  No delay by Holder shall constitute a waiver, election, or   acquiescence by it.   8. Attorney’s Fees.  Maker agrees to pay or reimburse upon demand Holder for all of its   reasonable out-of-pocket costs and expenses (including reasonable attorney’s fees) incurred in   connection with the enforcement of Maker’s Obligations or the exercise of any rights or   remedies hereunder or under applicable law, including, without limitation, the exercise of rights   and remedies with respect to the Priority Note Collateral.   9. Amendment and Waiver.  Except as otherwise expressly provided herein, the   provisions of this Note may be amended and Maker may take any action herein prohibited, or   omit to perform any act herein required to be performed by it, if Maker has obtained the written   consent of Holder of this Note.   10. Assignment and Transfer.  Holder may assign at any time (or grant a participation   interest at any time in) this Note to any of its affiliates, any financial institutions, or any other   person (including upon enforcement of rights by any secured creditor of the Holder), in which   event, the assignee shall have, to the extent of such assignment, the same rights and benefits as it   would if it were Holder, except as otherwise provided by the terms of such assignment or   participation.   11. Cancellation.  After all principal and accrued interest at any time owed on this Note has   been paid in full, this Note shall be surrendered to Maker for cancellation and shall not be   reissued.   12. Payments.  All payments to be made to Holder shall be made in the lawful money of the   United States of America in immediately available funds.     

 

7   13. Place of Payment.  Payments of principal and interest shall be delivered to Holder at   such address as is specified by prior written notice by Holder.   14. Governing Law.  All questions concerning the construction, validity, and interpretation   of this Note will be governed by and construed in accordance with the domestic laws of the State   of New York, without giving effect to any choice of law or conflict of law provision or rule   (whether of the State of New York or any other jurisdiction) that would cause the application of   the laws of any jurisdiction other than the State of New York.   15. Loss, Theft, Destruction, or Mutilation of Note.  Upon receipt by Maker of evidence   reasonably satisfactory to Maker of the loss, theft, destruction or mutilation of this Note, and, in   case of loss, theft or destruction, upon receipt of indemnity or security reasonably satisfactory to   Maker or, in case of mutilation, upon surrendering this Note for cancellation, and upon   reimbursement to Maker of all reasonable expenses incidental thereto, Maker will make and   deliver a new note of like tenor in lieu of this Note.  Any note made and delivered in accordance   with the provisions of this paragraph shall be dated as of the date hereof.   16. Waiver of Presentment, Demand, and Dishonor.  Maker hereby waives presentment   for payment, protest, demand, notice of protest, notice of nonpayment, and diligence with respect   to this Note, and waives and renounces all rights to the benefits of any statute of limitations or   any moratorium, appraisement, exemption, or homestead now provided or that hereafter may be   provided by any federal or applicable state statute, including, but not limited to, exemptions   provided by or allowed under the Bankruptcy Code, both as to itself and as to all of its property,   whether real or personal, against the enforcement and collection of the obligations evidenced by   this Note and any and all extensions, renewals, and modifications hereof.   17. Usury Laws.  It is the intention of the Maker and Holder to conform strictly to all   applicable usury laws now or hereafter in force, and any interest payable under this Note shall be   subject to reduction to the amount not in excess of the maximum legal amount allowed under the   applicable usury laws as now or hereafter constructed by the courts having jurisdiction over such   matters.  If the maturity of this Note is accelerated by reason of an Event of Default or otherwise,   then earned interest may never include more than the maximum amount permitted by law,   computed from the date hereof until payment, and any interest in excess of the maximum amount   permitted by law shall be canceled automatically and, if theretofore paid, shall, at the option of   Holder, either be rebated to Maker or credited on the principal amount of this Note, or if this   Note has been paid, then the excess shall be rebated to Maker.  The aggregate amount of all   interest (whether designated as interest, service charges, points, or otherwise) contracted for,   chargeable, or receivable under this Note shall under no circumstances exceed the maximum   legal rate upon the unpaid principal balance of this Note remaining unpaid from time to time.  If   such interest does exceed the maximum legal rate, it shall be deemed a mistake and such excess   shall be canceled automatically and, if theretofore paid, rebated to Maker or credited on the   principal amount of this Note, or if this Note has been repaid, then such excess shall be rebated   to Maker.   18. Waiver of Jury Trial; Consent to Jurisdiction.  Maker (and, by virtue of its acceptance   hereof, Holder) hereby irrevocably waive all right to trial by jury in any litigation, action,   proceeding, cross-claim, or counterclaim in any court (whether based on contract, tort, or     

 

8   otherwise) arising out of, relating to, or in connection with (a) this Note or the validity,   performance, interpretation, collection, or enforcement hereof or (b) the actions of such party in   the negotiation, authorization, execution, delivery, administration, performance, or enforcement   hereof.  Maker (and, by virtue of its acceptance hereof, Holder) further hereby waive any right of   offset or right to interpose any counterclaim in any such action, except for compulsory   counterclaims.  All actions and proceedings arising out of or relating to this Agreement shall be   heard and determined in the Bankruptcy Court, or if the Bankruptcy Court no longer has   jurisdiction or abstains, then in the state courts of New York sitting in New York City in the   Borough of Manhattan or, to the extent subject matter jurisdiction exists therefor, the United   States District Court for the Southern District of New York, and the Maker and Holder   irrevocably submit to the exclusive jurisdiction of such courts in respect of any such actions or   proceedings.         [Remainder of Page Intentionally Left Blank]        

 

    

 

      Exhibit B      Debenture         

 

EXECUTION VERSION            DATED JULY 20, 2015   GT ADVANCED TECHNOLOGIES LIMITED   AS COMPANY   GTAT CORPORATION   AS PRIORITY CHARGEE   GTAT CORPORATION   AS CONTINGENT CHARGEE   AND   GTAT CORPORATION AND GTAT ADVANCED EQUIPMENT HOLDING LLC   AS INTERCOMPANY SALES CHARGEES             DEBENTURE            

 

                  CONTENTS   Clause Page   1.  Definitions and Interpretation ........................................................................................ 1    2.  Covenant to Pay ............................................................................................................. 5    3.  Priority Note Floating Charge ........................................................................................ 6    4.  Contingent Note Floating Charge .................................................................................. 6    5.  Intercompany Sales Floating Charges ........................................................................... 6    6.  Crystallisation of Floating Charge ................................................................................. 6    7.  Perfection of Security .................................................................................................... 7    8.  Further Assurance .......................................................................................................... 8    9.  Negative Pledge and Disposals ...................................................................................... 8    10.  General Undertakings .................................................................................................... 8    11.  Enforcement of Security ................................................................................................ 9    12.  Powers of Sale................................................................................................................ 9    13.  Appointment of Receiver or Administrator ................................................................. 10    14.  Powers of Receiver ...................................................................................................... 11    15.  Priority and Application of Monies ............................................................................. 14    16.  Receipt and Protection of Purchasers .......................................................................... 15    17.  Power of Attorney ........................................................................................................ 16    18.  Representations ............................................................................................................ 16    19.  Effectiveness of Security ............................................................................................. 17    20.  Release of Security ...................................................................................................... 19    21.  Subsequent and Prior Security Interests ...................................................................... 22    22.  Currency Conversion ................................................................................................... 22    23.  Stamp taxes .................................................................................................................. 22    24.  Discretion and Delegation ............................................................................................ 22    25.  Set-off .......................................................................................................................... 23    26.  Changes to Parties ........................................................................................................ 23    27.  Amendments and Waivers ........................................................................................... 24    28.  Third Party Rights ........................................................................................................ 24    29.  Counterparts ................................................................................................................. 24    30.  Governing Law ............................................................................................................ 24    31.  Jurisdiction ................................................................................................................... 24         

 

       - 1 -       THIS DEBENTURE is made on July 20, 2015   BY:   (1) GT ADVANCED TECHNOLOGIES LIMITED, a private company limited by   shares incorporated in Hong Kong with company registration number 1371858 whose   registered office is at 13/F, Tower 2, The Gateway, Harbour City, 25 Canton Road,   Twimshatsui, Kowloon, Hong Kong (the "Company");   (2) GTAT CORPORATION, a Delaware corporation, in its capacity as chargee under   the Priority Note (as defined below) (the "Priority Chargee", which expression shall   include its successors, assigns and transferees);   (3) GTAT CORPORATION, a Delaware corporation, in its capacity as chargee under   the Contingent Note (as defined below) (the "Contingent Chargee", which expression   shall include its successors, assigns and transferees);   (4) GTAT CORPORATION, a Delaware corporation, in its capacity as chargee under   the Intercompany Sales Agreement (as defined below) ("GTAT" or an "Intercompany   Sales Chargee", which expression shall include its successors, assigns and   transferees); and   (5) GTAT ADVANCED EQUIPMENT HOLDING LLC as chargee under the   Intercompany Sales Agreement (as defined below) ("GTE" or an "Intercompany   Sales Chargee", which expression shall include its successors, assigns and transferees   and together with GTAT Corporation in its capacity as Intercompany Sales Chargee,   the "Intercompany Sales Chargees" and together with the Priority Chargee and the   Contingent Chargee, the "Chargees”).   NOW THIS DEBENTURE WITNESSES as follows:   1. DEFINITIONS AND INTERPRETATION   1.1 Definitions   Unless otherwise defined in this Debenture or unless the context otherwise requires,   terms and expressions defined in or construed for the purposes of the Intercompany   Sales Agreement shall bear the same meanings when used herein.  In addition:   "Accounts” has the meaning given to that term in the Intercompany Sales Agreement.   "ASF Furnaces” has the meaning given to that term in the Intercompany Sales   Agreement.   "ASF Furnace Sales" has the meaning given to that term in the Contingent Note.   "Charged ASF Proceeds" means:   (i) 100 per cent. of the amount of proceeds from ASF Furnace Sales received by   the Company and owed to GTAT Corporation pursuant to the terms of the   Intercompany Settlement Agreement;      

 

       - 2 -       (ii) 100 per cent. of the amount of proceeds from ASF Furnace Sales received by   the Company and owed to GTE pursuant to the terms of the Intercompany   Settlement Agreement; and   (iii) 50 per cent. of the amount of proceeds from ASF Furnace Sales retained by   the Company,   provided that an aggregate amount in respect of (i), (ii) and (iii) above equal to   US$10,000,000 shall not constitute Charged ASF Proceeds and shall not be subject to   the Security constituted by this Debenture.    "Charged Property" means all the assets and undertaking of the Company (including   without limitation the Charged ASF Proceeds, the GTAT Collateral, and the GTE   Collateral) which from time to time are the subject of the Security created or expressed   to be created in favour of the Chargees by or pursuant to this Debenture.   "Collateral Rights" means all rights, powers and remedies of the Chargees provided   by or pursuant to this Debenture or by law.   "Company Chapter 11 Case" means the Chapter 11 case of the Company pending in   the United States Bankruptcy Court for the District of New Hampshire (Case No. 14-   11920-HJB).   "Contingent Note" means the US$130,000,000 note dated on or about the date of this   Debenture and issued by the Company in favour of the Contingent Chargee.   "Contingent Note Floating Charge" has the meaning given to that term in Clause 4.1   (Subject to the Existing Account Charge, the Company hereby charges as   beneficial owner in favour of the Contingent Chargee as security for the payment   and discharge of the Secured Obligations, by way of floating charge, the Charged   ASF Proceeds and all Related Rights in relation thereto (the "Contingent Note   Floating Charge").).   "Event of Default" has, in respect of each Secured Document, the meaning given to it   in that Secured Document.   "Existing Account Charge" means the charge over account dated 6 November 2013   and made between the Company as chargor and the Existing Chargee.   "Existing Chargee" means Bank of America, National Association.   "GTAT Collateral" means:   (a) all present and future Accounts of the Company in any way related to   Intercompany Sales of ASF Furnaces by GTAT to the Company, or to which   the proceeds of any such Intercompany Sales are at any time credited;   (b) all present and future Letter-of-Credit Rights of the Company in any way   related to ASF Furnaces that are or were the subject of Intercompany Sales by   GTAT to the Company;     

 

       - 3 -       (c) all present and future rights of the Company in and to Supporting Obligations   (including guarantees and Letter-of-Credit Rights) in any way related to ASF   Furnaces that are or were the subject of Intercompany Sales made by GTAT to   the Company;   (d) all present and future rights and remedies (including without limitation any   rights of reclamation, replevin or recovery, any mechanic’s liens or other liens,   any rights of set-off and all other rights or remedies) of the Company, in each   case, in any way related to ASF Furnaces that are or were the subject of   Intercompany Sales made by GTAT to the Company;    (e) all present and future rights of the Company in any deposits in relation to ASF   Furnaces that were the subject of Intercompany Sales made by GTAT to the   Company; and   (f) all present and future rights of the Company in respect of returned goods   arising in relation to ASF Furnaces that are or were the subject of   Intercompany Sales made by GTAT to the Company.   "GTE Collateral" means:   (a) all present and future Accounts of the Company in any way related to   Intercompany Sales of ASF Furnaces by GTE to the Company, or to which the   proceeds of any such Intercompany Sales are at any time credited;   (b) all present and future Letter-of-Credit Rights of the Company in any way   related to ASF Furnaces that are or were the subject of Intercompany Sales by   GTE to the Company;   (c) all present and future rights of the Company in and to Supporting Obligations   (including guarantees and Letter-of-Credit Rights) in any way related to ASF   Furnaces that are or were the subject of Intercompany Sales made by GTE to   the Company;   (d) all present and future rights and remedies (including without limitation any   rights of reclamation, replevin or recovery, any mechanic’s liens or other liens,   any rights of set-off and all other rights or remedies) of the Company, in each   case, in any way related to ASF Furnaces that are or were the subject of   Intercompany Sales made by GTE to the Company;    (e) all present and future rights of the Company in any deposits in relation to ASF   Furnaces that were the subject of Intercompany Sales made by GTE to the   Company;   (f) all present and future rights of the Company in respect of returned goods   arising in relation to ASF Furnaces that are or were the subject of   Intercompany Sales made by GTE to the Company.   "Hong Kong" means the Hong Kong Special Administrative Region of the People's   Republic of China.     

 

       - 4 -       "Intercompany Sales" has the meaning given to that term in the Intercompany Sales   Agreement.   "Intercompany Sales Agreement" means the intercompany sales agreement dated on   or about the date of this Debenture and made between the Company and the   Intercompany Sales Chargees.   "Intercompany Sales Floating Charges" has the meaning given to that term in Clause   5.1 (5.1).   "Letter-of-Credit Rights" has the meaning given to that term in the Intercompany   Sales Agreement.   "Priority Note" means the US$22,500,000 note dated on or about the date of this   Debenture and issued by the Company in favour of the Priority Chargee.   "Priority Note Floating Charge" has the meaning given to that term in Clause 3   (Priority Note Floating Charge).   "Receiver" means a receiver or receiver and manager or an administrative receiver of   the whole or any part of the Charged Property and that term will include any appointee   made under a joint and/or several appointment.   "Related Rights" means, in relation to any asset:   (a) the proceeds of sale of any part of that asset;   (b) all rights under any licence, agreement for sale, lease or other disposal in   respect of that asset;   (c) all rights, powers, benefits, claims, contracts, warranties, remedies, security,   guarantees, indemnities or covenants for title in respect of that asset;   (d) any moneys and proceeds paid or payable in respect of that asset; and   (e) (in the case where such asset comprises any share, equity interest or other   security) all dividends, distributions, interest and monies payable in respect   thereof and any rights, assets, shares and/or securities deriving therefrom or   accruing thereto whether by way of redemption, bonus, preference, option,   substitution, conversion, compensation or otherwise.   "Secured Documents" means each of the Priority Note, the Contingent Note and the   Intercompany Sales Agreement.   "Secured Obligations" means all present and future obligations and liabilities   (whether actual or contingent and owed in any capacity whatsoever) of the Company   to each Chargee under each Secured Document.   "Security" means a mortgage, charge, pledge, lien or other security interest securing   any obligation of any person or any other agreement or arrangement having a similar   effect.     

 

       - 5 -       "Supporting Obligations" has the meaning given to that term in the Intercompany   Sales Agreement.   "US$" means U.S. Dollars, the lawful currency of the United States of America.   1.2 Construction   In this Debenture:   1.2.1 any reference to:   (a) the "Company", the "Priority Chargee", the "Contingent Chargee",   any "Intercompany Sales Chargee", any "Chargee" or any other   person shall be construed so as to include its successors in title,   permitted assigns and permitted transferees to, or of, its rights and/or   obligations under the Secured Documents or this Debenture;   (b) a "Secured Document" or any other agreement or instrument is a   reference to that Secured Document or other agreement or instrument   as amended, novated, supplemented, extended or restated;   (c) a "person" includes any individual, firm, company, corporation,   government, state or agency of a state or any association, trust, joint   venture, consortium, partnership or other entity (whether or not having   separate legal personality);   (d) a "regulation" includes any regulation, rule, official directive, request   or guideline (whether or not having the force of law) of any   governmental, intergovernmental or supranational body, agency,   department or of any regulatory, self-regulatory or other authority or   organisation;   (e) a provision of law is a reference to that provision as amended or re-   enacted; and   (f) a time of day is a reference to Hong Kong time; and   1.2.2 save where the context otherwise requires, references in this Debenture to any   Clause or Schedule shall be to a clause or schedule contained in this   Debenture.   2. COVENANT TO PAY   The Company hereby covenants with each Chargee that it shall on demand of any   Chargee discharge all Secured Obligations on their due date in accordance with their   terms provided that neither such covenant nor the Security constituted by this   Debenture shall extend to or include any liability or sum that would, but for this   proviso, cause such covenant or security to be unlawful or prohibited by any   applicable law.     

 

       - 6 -       3. PRIORITY NOTE FLOATING CHARGE   Subject to the Existing Account Charge, the Company hereby charges as beneficial   owner in favour of the Priority Chargee as security for the payment and discharge of   the Secured Obligations, by way of first floating charge, all present and future assets   (including without limitation any real, personal, tangible or intangible property and   any and all intercompany claims and receivables) and undertaking of the Company   and all Related Rights in relation thereto (the "Priority Note Floating Charge").   4. CONTINGENT NOTE FLOATING CHARGE   4.1 Subject to the Existing Account Charge, the Company hereby charges as beneficial   owner in favour of the Contingent Chargee as security for the payment and discharge   of the Secured Obligations, by way of floating charge, the Charged ASF Proceeds and   all Related Rights in relation thereto (the "Contingent Note Floating Charge").   4.2 The Contingent Note Floating Charge shall be deferred in point of priority to the   Priority Note Floating Charge.   5. INTERCOMPANY SALES FLOATING CHARGES   5.1 Subject to the Existing Account Charge, the Company hereby charges as beneficial   owner in favour of:   5.1.1 GTAT, as security for the payment and discharge of the Secured Obligations,   by way of floating charge, the GTAT Collateral; and   5.1.2 GTE, as security for the payment and discharge of the Secured Obligations, by   way of floating charge, the GTE Collateral,   and (in each case) all Related Rights in relation thereto (the "Intercompany Sales   Floating Charges").   5.2 The Intercompany Sales Floating Charges shall be deferred in point of priority to (i)   the Priority Note Floating Charge and (ii) the Contingent Note Floating Charge.   6. CRYSTALLISATION OF FLOATING CHARGE   6.1 Crystallisation:  By Notice   Each Chargee may at any time by notice in writing to the Company convert any   floating charge created under this Debenture with immediate effect into a fixed charge   as regards any property or assets specified in the notice if:   6.1.1 an Event of Default has occurred and is continuing under the applicable   Secured Document; or   6.1.2 such Chargee reasonably considers that any of the Charged Property may be in   jeopardy or in danger of being seized or sold pursuant to any form of legal   process; or     

 

       - 7 -       6.1.3 such Chargee reasonably considers that it is desirable in order to protect the   priority of the Security constituted by this Debenture.   6.2 Crystallisation:  Automatic   Notwithstanding Clause  6.1 (Crystallisation:  By Notice) and without prejudice to any   law which may have a similar effect, any floating charge created by this Debenture   will automatically be converted (without notice) with immediate effect into a fixed   charge as regards all the assets subject to the floating charge if:   6.2.1 the Company creates or attempts to create any Security (other than Security   that is permitted under this Debenture or any Secured Document) over any of   the Charged Property; or   6.2.2 any person levies or attempts to levy any distress, execution or other process   against any of the Charged Property; or   6.2.3 a petition is presented for the compulsory winding-up of the Company; or   6.2.4 a meeting is convened for the passing of a resolution for the voluntary   winding-up of the Company; or   6.2.5 an application is presented or made for a warrant of execution, writ of fieri   facias, garnishee order or charging order in respect of any of the assets of the   Company; or   6.2.6 a resolution is passed or an order is made for the winding-up, dissolution,   administration or re-organisation of the Company or any provisional liquidator   or liquidator is appointed to or in respect of the Company; or   6.2.7 any event occurs under the laws of any jurisdiction having a similar or   analogous effect to any of those events referred to in sub-clauses  6.2.3 to  6.2.6;   or   6.2.8 the Existing Chargee enforces or takes any steps with a view towards   enforcing, the Security created under or pursuant to the Existing Account   Charge,   provided that no crystallisation shall occur under this Clause 6.2 in connection with a   plan of reorganization in the Company Chapter 11 Case.   7. PERFECTION OF SECURITY   The Company shall, as soon as practicable but in any event within ten days of the date   of this Debenture, submit the specified particulars of the Security created under this   Debenture for registration with the Hong Kong Companies Registry in accordance   with the relevant laws and regulations of Hong Kong, and promptly upon such   registration having been completed, deliver evidence thereof to each Chargee.     

 

       - 8 -       8. FURTHER ASSURANCE   8.1 Further Assurance: General   8.1.1 The Company shall promptly at its own cost do all such acts and/or execute all   such documents (including without limitation assignments, transfers,   mortgages, charges, notices and instructions) as each Chargee may reasonably   specify (and in such form as such Chargee may reasonably require in favour of   such Chargee or its nominee(s)):   (a) to perfect the Security created or intended to be created in respect of the   Charged Property (which may include, without limitation, the execution   by the Company of a mortgage, charge or assignment over all or any of   the assets constituting, or intended to constitute, any part of Charged   Property) or for the exercise of the Collateral Rights;   (b) to confer on each Chargee security over any property and assets of the   Company located in any jurisdiction outside Hong Kong equivalent or   similar to the Security intended to be conferred by or pursuant to this   Debenture; and/or   (c) to facilitate the realisation of the Charged Property.   8.2 Necessary Action   The Company shall from time to time take all such action (whether or not requested to   do so by any Chargee) as is or shall be available to it (including without limitation   obtaining and/or effecting all authorisations) as may be necessary for the purpose of   the creation, perfection, protection or maintenance of any security conferred or   intended to be conferred on the Chargees by or pursuant to this Debenture.   8.3 Implied Covenants for Title   The obligations of the Company under this Debenture shall be in addition to any   covenants for title deemed to be included in this Debenture under the Conveyancing    and Property Ordinance (Cap. 219) and/or general law.   9. NEGATIVE PLEDGE AND DISPOSALS   9.1 Negative Pledge   The Company undertakes that it shall not, at any time during the subsistence of this   Debenture, create or permit to subsist any Security over all or any part of the Charged   Property, except for the Security constituted by this Debenture and the Existing   Account Charge.   10. GENERAL UNDERTAKINGS   10.1 Information and Access   The Company shall from time to time on request of each Chargee, furnish such   Chargee with such information as the Company may reasonably require about the     

 

       - 9 -       Company's business and affairs, the Charged Property, the Existing Account Charge   and/or the Company's compliance with the terms of this Debenture and the Company   shall permit each Chargee, its representatives, professional advisers and contractors,   free access at all reasonable times and on reasonable notice to (a) inspect and take   copies and extracts from the books, accounts and records of the Company and (b) to   view the Charged Property or any part thereof (without becoming liable as mortgagee   in possession).   11. ENFORCEMENT OF SECURITY   11.1 Enforcement   Upon and after the occurrence of an Event of Default or if the Company requests any   Chargee to exercise any of its powers under this Debenture or if any event described   in any of Clauses  6.2.1 to 6.2.8 occurs, the Security created by or pursuant to this   Debenture is immediately enforceable and each Chargee may, without notice to the   Company or prior authorisation from any court, in its absolute discretion:   11.1.1 enforce all or any part of such security (at the times, in the manner and on the   terms it thinks fit) and take possession of and hold or dispose of all or any part   of the Charged Property; and   11.1.2 whether or not it has appointed a Receiver, exercise all or any of the powers,   authorities and discretions conferred by the Conveyancing and Property   Ordinance (Cap. 219) (as varied or extended by this Debenture) on mortgagees   and by this Debenture on any Receiver or otherwise conferred by law on   mortgagees and/or Receivers.   11.2 No Liability as Mortgagee in Possession   Neither any Chargee nor any Receiver shall be liable to account as a mortgagee in   possession in respect of all or any part of the Charged Property or be liable for any   loss upon realisation or for any neglect, default or omission in connection with the   Charged Property to which a mortgagee or a mortgagee in possession might otherwise   be liable.   12. POWERS OF SALE   12.1 Extension of Powers   The power of sale or other disposal conferred on each Chargee and on any Receiver by   this Debenture shall operate as a variation and extension of the statutory power of sale   under Sections 51 and 53 of the Conveyancing and Property Ordinance (Cap. 219) and   such power shall arise (and the Secured Obligations shall be deemed due and payable   for that purpose) on execution of this Debenture.   12.2 Restrictions   The restrictions contained in paragraph 11 of the Fourth Schedule to the Conveyancing   and Property Ordinance (Cap. 219) shall not apply to this Debenture or to the exercise   by any Chargee of its right to consolidate all or any of the Security created by or   pursuant to this Debenture with any other security in existence at any time or to its     

 

       - 10 -       power of sale, which powers may be exercised by any Chargee without notice to the   Company on or at any time after the occurrence of an Event of Default or any of the   events described in any of Clauses  6.2.1 to 6.2.8.  Any restrictions on the consolidation   of security shall be excluded to the fullest extent permitted by law.   13. APPOINTMENT OF RECEIVER OR ADMINISTRATOR   13.1 Appointment and Removal   Upon and after the occurrence of an Event of Default or if requested to do so by the   Company or if any of the events described in any of Clauses  6.2.1 to 6.2.86.2.7 occur,   each Chargee may by deed or otherwise (acting through an authorised officer of such   Chargee), without prior notice to the Company:   13.1.1 appoint one or more persons to be a Receiver of the whole or any part of the   Charged Property;   13.1.2 appoint two or more Receivers of separate parts of the Charged Property;   13.1.3 remove (so far as it is lawfully able) any Receiver so appointed; and/or   13.1.4 appoint another person(s) as an additional or replacement Receiver(s).   13.2 Capacity of Receivers   Each person appointed to be a Receiver pursuant to Clause  13.1 (Appointment and   Removal) shall be:   13.2.1 entitled to act individually or together with any other person appointed or   substituted as Receiver;   13.2.2 for all purposes deemed to be the agent of the Company which shall be solely   responsible for his acts, defaults and liabilities and for the payment of his   remuneration and no Receiver shall at any time act as agent for any Chargee;   and   13.2.3 entitled to remuneration for his services at a rate to be fixed by any Chargee   from time to time.   13.3 Statutory Powers of Appointment   The powers of appointment of a Receiver herein contained shall be in addition to all   statutory and other powers of appointment of the Chargees under the Conveyancing   and Property Ordinance (Cap. 219) (as varied and extended by this Debenture) or   otherwise and such powers shall remain exercisable from time to time by the Chargees   in respect of all or any part of the Charged Property.     

 

       - 11 -       14. POWERS OF RECEIVER   14.1 Powers of Receiver   Every Receiver shall (subject to any restrictions in the instrument appointing him but   notwithstanding any winding-up or dissolution of the Company) have and be entitled   to exercise, in relation to the Charged Property (and any assets of the Company which,   when got in, would be Charged Property) or that part thereof in respect of which he   was appointed, and as varied and extended by the provisions of this Debenture (in the   name of or on behalf of the Company or in his own name and, in each case, at the cost   of the Company):   14.1.1 all the powers conferred by the Conveyancing and Property Ordinance (Cap.   219) on mortgagors and on mortgagees in possession and on receivers   appointed under that Ordinance;   14.1.2 all the powers and rights of an absolute owner and power to do or omit to do   anything which the Company itself could do or omit to do; and   14.1.3 the power to do all things (including without limitation bringing or defending   proceedings in the name or on behalf of the Company) which seem to the   Receiver to be incidental or conducive to (a) any of the functions, powers,   authorities or discretions conferred on or vested in him or (b) the exercise of   any Collateral Rights (including without limitation realisation of all or any part   of the Charged Property) or (c) bringing to his hands any assets of the   Company forming, or which when got in would be, part of the Charged   Property.   14.2 Additional Powers of Receiver   In addition to and without prejudice to the generality of the foregoing, every Receiver   shall (subject to any limitations or restrictions expressed in the instrument appointing   him but notwithstanding any winding-up or dissolution of the Company) have the   following powers in relation to the Charged Property (and any assets of the Company   which, when got in, would be part of the Charged Property) in respect of which he was   appointed (and every reference in this Clause 14.2 to the "Charged Property" shall be   read as a reference to that part of the Charged Property in respect of which such   Receiver was appointed):   14.2.1 Take Possession   power to enter upon, take immediate possession of, collect and get in the   Charged Property including without limitation rents and other income whether   accrued before or after the date of his appointment and for that purpose to   make, or to require the directors of the Company to make, calls conditionally   or unconditionally upon the holders of the Company's share capital in respect   of any such capital of the Company which remains uncalled and to enforce   payment of calls so made and any previous unpaid calls by taking proceedings   in the name of the Company or in his own name;     

 

       - 12 -       14.2.2 Proceedings and Claims   power to bring, prosecute, enforce, defend and abandon applications, claims,   disputes, actions, suits and proceedings in connection with the business of the   Company or all or any part of the Charged Property or the Debenture in the   name of the Company or in his own name and to submit to arbitration,   negotiate, compromise and settle any such applications, claims, disputes,   actions, suits or proceedings and in addition to take or defend proceedings for   the compulsory winding-up of the Company and proceedings for directions   under Section 255 of the Companies Ordinance (Cap. 32);   14.2.3 Carry on Business   power to carry on and manage, or concur in the carrying on and management   of or to appoint a manager of, the whole or any part of the Company's business   in such manner as he shall in his absolute discretion think fit including without   limitation the power to enter into any contract or arrangement and to perform,   repudiate, rescind or vary any contract to which the Company is a party and   power to supervise, control and finance any subsidiary of the Company or any   other body corporate (including without limitation any referred to in   Clause  14.2.6 below) and its business and the conduct thereof and to change   the situation of the registered office of the Company or any such subsidiary or   other body corporate;   14.2.4 Deal with Charged Property   without the need to observe the restrictions imposed by paragraph 11 of the   Fourth Schedule to the Conveyancing and Property Ordinance (Cap. 219),   power, in relation to the Charged Property and each and every part thereof, to   sell, transfer, convey, grant or accept surrenders of leases, vary, terminate or   surrender leases, grant, vary or terminate licences or rights of user (in each   case with or without consideration) or concur in any of the foregoing by the   Company or any other receiver or manager of the Company (including without   limitation to or in favour of the Chargees) in such manner and generally on   such terms as he thinks fit including without limitation, without the consent of   the Company, the severing and separate disposal from the premises to which   they were affixed of fixtures and plant and machinery;   14.2.5 Acquisitions   power to purchase, lease, hire or otherwise acquire any assets or rights of any   description which he shall in his absolute discretion consider necessary or   desirable for the carrying on, improvement or realisation of the whole or any   part of the Charged Property or the business of the Company or otherwise for   the benefit of the whole or any part of the Charged Property;   14.2.6 New Subsidiary   power to promote, procure the formation or otherwise acquire the share capital   of, any body corporate with a view to such body corporate becoming a   subsidiary of the Company or otherwise and purchasing, leasing or otherwise     

 

       - 13 -       acquiring an interest in the whole or any part of the Charged Property or   carrying on any business in succession to the Company or any subsidiary of   the Company;   14.2.7 Landlord and Tenant   power to make allowances to and re-arrangements with any lessees, tenants or   other persons from whom any rents and profits may be receivable (including   granting any licences and operating any rent reviews) and to exercise any   powers and discretions conferred on a landlord or a tenant by any statutory   provision or by general law from time to time in force in relation to all or any   part of the Charged Property;   14.2.8 Repairs, etc.   power to undertake, effect or complete any work of repair, refurbishment,   decoration, modification, building, improvement or development of all or any   part of the Charged Property as he may think expedient and to apply for and   obtain any planning permissions, building regulation approvals and any other   permissions, consents or licences in each case as he may in his absolute   discretion think fit and to acquire (or acquire an interest in) any such property   as he may think expedient;   14.2.9 Insurance   power to effect, maintain or renew indemnity and other insurances and to   obtain bonds and performance guarantees;   14.2.10 Employment   power to employ, engage, dismiss or vary the terms of employment or   engagement of such employees, workmen, servants, officers, managers, agents   and advisers on such terms as to remuneration and otherwise as he shall think   fit including without limitation power to engage his own firm in the conduct of   the receivership;   14.2.11 Borrowing   power to raise or borrow money from any Chargee or any other person to rank   either in priority to the security constituted by this Debenture or any part of it   or otherwise and with or without a mortgage or charge on the Charged   Property or any part of it on such terms as he shall in his absolute discretion   think fit (and no person lending such money shall be concerned to see or   enquire as to the propriety or purpose of the exercise of such power or the   application of money so raised or borrowed);   14.2.12 Redemption of Security   power to redeem, discharge or compromise any security whether or not having   priority to the security constituted by this Debenture or any part of it;     

 

       - 14 -       14.2.13 Covenants, Guarantees and Indemnities   power to enter into bonds, covenants, guarantees, commitments, indemnities   and other obligations or liabilities as he shall think fit, to make all payments   needed to effect, maintain or satisfy such obligations or liabilities and to use   the company seal of the Company; and   14.2.14 Exercise of Powers in Company's Name   power to exercise any or all of the above powers on behalf of and in the name   of the Company (notwithstanding any winding-up or dissolution of the   Company) or on his own behalf.   14.3 Terms of Disposition   In making any sale or other disposal of all or any part of the Charged Property or any   acquisition in the exercise of their respective powers (including without limitation a   disposal by a Receiver to any subsidiary of the Company or other body corporate as is   referred to in Clause  14.2.6), a Receiver or any Chargee may accept or dispose of as,   and by way of consideration for, such sale or other disposal or acquisition, cash,   shares, loan capital or other obligations, including without limitation consideration   fluctuating according to or dependent upon profit or turnover and consideration the   amount whereof is to be determined by a third party.  Any such consideration may, if   thought expedient by the Receiver or any Chargee, be nil or may be payable or   receivable in a lump sum or by instalments.  Any contract for any such sale, disposal   or acquisition by the Receiver or any Chargee may contain conditions excluding or   restricting the personal liability of the Receiver or such Chargee.   15. PRIORITY AND APPLICATION OF MONIES   15.1 Security   Each Chargee agrees that the Security constituted by this Debenture shall rank and   secure the following liabilities of the Company (but only to the extent that such   Security is expressed to secure those liabilities of the Company) in the following   order:   15.1.1 first, the liabilities of the Company under the Priority Note;   15.1.2 second, (a) with respect to the Charged ASF Proceeds, the liabilities of the   Company under the Contingent Note and (b) with respect to the GTAT   Collateral and the GTE Collateral other than the Charged ASF Property, the   liabilities of the Company under the Intercompany Sales Agreement; and   15.1.3 third, with respect to the GTAT Collateral and the GTE Collateral that is also   Charged ASF Property, the liabilities of the Company under the Intercompany   Sales Agreement.     

 

       - 15 -       15.2 Payments under Secured Documents   The Company may make payments of the Secured Obligations at any time in   accordance with the terms of the Secured Documents, and each Chargee may receive   any such payments made in accordance with the terms of the Secured Documents.   15.3 Application of Monies   Save as made under Clause 15.2 (Payments under Secured Documents) or as   otherwise expressly provided in this Debenture, all monies received or recovered by   any Chargee under this Debenture (whether as a result of the enforcement of the   Security constituted by this Debenture or otherwise) shall (by way of variation of the   Conveyancing and Property Ordinance (Cap. 219)) be applied:   15.3.1 first, in the payment of the costs, charges and expenses incurred and payments   made by any Receiver, the payment of his remuneration and the discharge of   any liabilities incurred by such Receiver in, or incidental to, the exercise of   any of his powers;   15.3.2 second, in the payment and satisfaction in full of the obligations of the   Company under the Priority Note;   15.3.3 third, to the extent such monies are received or recovered on account of the   Charged ASF Proceeds, in the payment and satisfaction in full of the   obligations of the Company under the Contingent Note; and   15.3.4 fourth, to the extent such monies are received or recovered on account of the   GTAT Collateral or the GTE Collateral, in the payment and satisfaction in full   of the obligations of the Company under the Intercompany Sales Agreement.     15.4 Turnover by Chargees   If at any time prior to the release of the Security constituted by this Debenture   pursuant to Section 20 (Release of Security), any Chargee receives or recovers any   payment from the Company which is not made pursuant to Clause 15.2 (Payments   under Secured Documents) or Clause 15.3 (Application of Monies), such Chargee   shall promptly notify each other Chargee of such receipt or recovery and apply the   full amount of such receipt or recovery in the order set out in Clause 15.3 (Application   of Monies).   15.5 Application by Company   Any application under this Clause 15 shall override any application by the Company.   16. RECEIPT AND PROTECTION OF PURCHASERS   16.1 Receipt and Consideration   The receipt of any Chargee or any Receiver shall be conclusive discharge to a   purchaser of any part of the Charged Property from such Chargee or such Receiver   and in making any sale or disposal of any part of the Charged Property or making any     

 

       - 16 -       acquisition, any Chargee or any Receiver may do so for such consideration, in such   manner and on such terms as it thinks fit.   16.2 Protection of Purchasers   No purchaser or other person dealing with any Chargee or any Receiver shall be   bound to inquire whether the right of such Chargee or such Receiver to exercise any   of its powers has arisen or become exercisable or be concerned with any propriety or   regularity on the part of such Chargee or such Receiver in such dealings.  The   protection given to purchasers from a mortgagee in Sections 52 and 55 of the   Conveyancing and Property Ordinance (Cap. 219) shall apply equally to purchaser(s)   and other person(s) dealing with any Chargee or any Receiver.   17. POWER OF ATTORNEY   17.1 Appointment and Powers   The Company by way of security irrevocably (within the meaning of Section 4 of the   Powers of Attorney Ordinance (Cap. 31)) appoints each Chargee and any Receiver   severally to be its attorney and in its name, on its behalf and as its act and deed to   execute, deliver and perfect all documents and do all things which such Chargee or   such Receiver may consider to be necessary for:   17.1.1 carrying out any obligation imposed on the Company by this Debenture or any   other agreement binding on the Company to which such Chargee is party   (including without limitation the execution and delivery of any deeds, charges,   assignments or other security and any transfers of the Charged Property or any   part thereof); and   17.1.2 enabling such Chargee and any Receiver to exercise, or delegate the exercise   of, any of the rights, powers and authorities conferred on them by or pursuant   to this Debenture or by law (including, without limitation, upon or after the   occurrence of an Event of Default, the exercise of any right of a legal or   beneficial owner of the Charged Property or any part thereof).   17.2 Ratification   The Company shall ratify and confirm all things done and all documents executed by   any attorney in the exercise or purported exercise of all or any of his powers.   18. REPRESENTATIONS   The Company makes the representations and warranties set out in this Clause 18 with   respect to itself and the Charged Property to each Chargee on the date of this   Debenture.   18.1 Nature of Security   This Debenture creates the Security it purports to create and is not liable to be   amended, avoided or otherwise set aside on its liquidation or otherwise.       

 

       - 17 -       18.2 Ranking of Security   The Security created by this Debenture has the ranking it is expressed to have in this   Debenture and (other than as provided in this Debenture, any Secured Document and   the Existing Account Charge) is not subject to any prior ranking or pari passu ranking   Security Interest.   19. EFFECTIVENESS OF SECURITY   19.1 Continuing Security   The Security created by or pursuant to this Debenture shall remain in full force and   effect as a continuing security for the Secured Obligations unless and until discharged   by the Chargees.  No part of the Security from time to time intended to be constituted   by this Debenture will be considered satisfied or discharged by any intermediate   payment, discharge or satisfaction of the whole or any part of the Secured   Obligations.   19.2 Cumulative Rights   The Security created by this Debenture and the Collateral Rights shall be cumulative,   in addition to and independent of every other Security which the Chargees may at any   time hold for any or all of the Secured Obligations or any rights, powers and remedies   provided by law.  No prior security held by the Chargees over the whole or any part of   the Charged Property shall merge into the Security constituted by this Debenture.   19.3 Company's Obligations   None of the obligations of the Company under this Debenture or the Collateral Rights   shall be affected by an act, omission, matter, thing or event which, but for this   Clause  19.3, would reduce, release or prejudice any of its obligations under this   Debenture including (without limitation and whether or not known to it or to any   Chargee):   19.3.1 the winding-up, dissolution, administration, reorganisation, death, insolvency,   incapacity or bankruptcy  of the Company or any other person or any change   in its status, function, control or ownership;   19.3.2 any of the obligations of the Company or any other person under any Secured   Document, or under any other security relating to any Secured Document   being or becoming illegal, invalid, unenforceable or ineffective in any respect;   19.3.3 any time, waiver or consent granted to, or composition with, the Company or   other person;   19.3.4 the release of the Company or any other person under the terms of any   composition or arrangement with any creditor;   19.3.5 the taking, variation, compromise, exchange, renewal or release of, or refusal   or neglect to perfect, take up or enforce, any rights against, or security over   assets of, the Company or other person or any non-presentation or non-    

 

       - 18 -       observance of any formality or other requirement in respect of any instrument   or any failure to realise the full value of any security;   19.3.6 any incapacity or lack of power, authority or legal personality of or dissolution   or change in the members or status of the Company or any other person;   19.3.7 any amendment, novation, supplement, extension (whether of maturity or   otherwise) or restatement (in each case however fundamental and of   whatsoever nature, and whether or not more onerous) or replacement of a   Secured Document or any other document or security or of the Secured   Obligations;   19.3.8 any unenforceability, illegality or invalidity of any obligation of any person   under any Secured Document or any other document or security;   19.3.9 any insolvency or similar proceedings;   19.3.10 any claims or set-off right that the Company may have; or   19.3.11 any law, regulation or decree or order of any jurisdiction affecting the   Company or any other person.   19.4 Remedies and Waivers   No failure on the part of any Chargee to exercise, or any delay on its part in   exercising, any Collateral Right shall operate as a waiver thereof or constitute an   election to affirm this Debenture.  No election by any Chargee to affirm this   Debenture shall be effective unless it is in writing.  No single or partial exercise of   any Collateral Right shall preclude any further or other exercise of that or any other   Collateral Right.   19.5 No Liability   None of any Chargee, its nominee(s) or any Receiver shall be liable by reason of (a)   taking any action permitted by this Debenture or (b) any neglect or default in   connection with all or any part of the Charged Property or (c) taking possession of or   realising all or any part of the Charged Property, except in the case of gross   negligence or wilful default upon its part (as finally judicially determined).   19.6 Partial Invalidity   If, at any time, any provision of this Debenture is or becomes illegal, invalid or   unenforceable in any respect under the law of any jurisdiction, neither the legality,   validity or enforceability of the remaining provisions of this Debenture under such   laws nor of such provision under the laws of any other jurisdiction shall in any way be   affected or impaired thereby and, if any part of the security intended to be created by   or pursuant to this Debenture is invalid, unenforceable or ineffective for any reason,   that shall not affect or impair any other part of that security.     

 

       - 19 -       19.7 Variation of Conveyancing and Property Ordinance (Cap. 219)   The covenants implied under section 35 of, and the powers implied under section   51(1) of, and (subject to the provisions of this Debenture) the provisions of the Fourth   Schedule to, the Conveyancing and Property Ordinance (Cap. 219) of the Laws of   Hong Kong are varied and extended by this Debenture so that such covenants, powers   and provisions shall take effect in relation to:   19.7.1 the creation (whether by assignment, charge or otherwise) of each and every   element of any security constituted under or pursuant to this Debenture; and   19.7.2 each and every item of the Charged Property (whether mortgaged land or other   assets of any kind).   19.8 No Prior Demand   No Chargee shall be obliged to make any demand of or enforce any rights or claim   against any person, to take any action or obtain judgment in any court against any   person or to make or file any proof or claim in a liquidation, bankruptcy or insolvency   of any person or to enforce or seek to enforce any other security in respect of any or   all of the Secured Obligations before exercising any Collateral Right.   19.9 Settlement conditional   Any settlement, discharge or release hereunder in relation to the Company or all or   any part of the Charged Property shall be conditional upon no security or payment by   the Company to, or recovery from the Company by, any Chargee being avoided or   reduced by virtue of any bankruptcy, insolvency, liquidation or similar laws of   general application or any similar event or for any other reason and shall in the event   of any such avoidance or reduction or similar event be void.   20. RELEASE OF SECURITY   20.1 Redemption of Security   20.1.1 At the time when the Priority Chargee confirms that (i) all Secured Obligations   under the Priority Note have been irrevocably discharged in full, (ii) all   amounts which may be or become payable by the Company under or in   connection with the Priority Note have been irrevocably paid in full and (iii)   the Company is not under any further obligation (whether actual or contingent)   to provide any further advance or financial accommodation to the Priority   Chargee under the Priority Note, the Priority Chargee shall, at the request   (with reasonable notice) and cost of the Company, release and cancel the   Priority Note Floating Charge and procure the reassignment to the Company of   the property and assets assigned to the Priority Chargee pursuant to the   Priority Note Floating Charge (to the extent not otherwise sold, assigned or   otherwise disposed of or applied in accordance with this Debenture), subject to   Clause  20.2 (Avoidance of Payments) and  19.9 (Settlement conditional) and   without recourse to, or any representation or warranty by, any Chargee or any   of its nominees, and provided that:     

 

       - 20 -       (a) such release, cancellation and reassignment shall not in any way be   deemed to constitute a release, cancellation or reassignment (or any   other discharge) of the Security constituted by this Debenture in favour   of the Contingent Chargee and the Intercompany Sales Chargees   (including the Contingent Note Floating Charge and the Intercompany   Sales Floating Charges); and   (b) the Company hereby irrevocably agrees that, at the time at which the   Priority Chargee grants any release, cancellation or reassignment under   this Clause 20.1.1, the Company shall enter into a deed of confirmation   (in a form acceptable to the Contingent Chargee and the Intercompany   Sales Chargees) which confirms that notwithstanding any such release,   cancellation or reassignment, the Security constituted by this   Debenture in favour of the Contingent Chargee and the Intercompany   Sales Chargees (including the Contingent Note Floating Charge and   the Intercompany Sales Floating Charges) shall continue in full force   and effect until such Security is released pursuant to Clause 20.1.2 or   20.1.3 (as applicable).   20.1.2 At the time when the Contingent Chargee confirms that (i) all Secured   Obligations under the Contingent Note have been irrevocably discharged in   full, (ii) all amounts which may be or become payable by the Company under   or in connection with the Contingent Note have been irrevocably paid in full   and (iii) the Company is not under any further obligation (whether actual or   contingent) to provide any further advance or financial accommodation to the   Contingent Chargee under the Contingent Note, the Contingent Chargee shall,   at the request (with reasonable notice) and cost of the Company, release and   cancel the Contingent Note Floating Charge and procure the reassignment to   the Company of the property and assets assigned to the Contingent Chargee   pursuant to the Contingent Note Floating Charge (to the extent not otherwise   sold, assigned or otherwise disposed of or applied in accordance with this   Debenture), subject to Clause  20.2 (Avoidance of Payments) and  19.9   (Settlement conditional) and without recourse to, or any representation or   warranty by, any Chargee or any of its nominees, and provided that:   (a) such release, cancellation and reassignment shall not in any way be   deemed to constitute a release, cancellation or reassignment (or any   other discharge) of the Security constituted by this Debenture in favour   of the Priority Chargee and the Intercompany Sales Chargees   (including the Priority Note Floating Charge and the Intercompany   Sales Floating Charges); and    (b) the Company hereby irrevocably agrees that, at the time at which the   Contingent Chargee grants any release, cancellation or reassignment   under this Clause 20.1.1, the Company shall enter into a deed of   confirmation (in a form acceptable to the Priority Chargee and the   Intercompany Sales Chargees) which confirms that notwithstanding   any such release, cancellation or reassignment, the Security constituted   by this Debenture in favour of the Priority Chargee and the   Intercompany Sales Chargees (including the Priority Note Floating   Charge and the Intercompany Sales Floating Charges) shall continue in     

 

       - 21 -       full force and effect until such Security is released pursuant to Clause   20.1.2 or 20.1.3 (as applicable).   20.1.3 At the time when the Intercompany Sales Chargees confirm that (i) all Secured   Obligations under the Intercompany Sales Agreement have been irrevocably   discharged in full, (ii) all amounts which may be or become payable by the   Company under or in connection with the Intercompany Sales Agreement have   been irrevocably paid in full and (iii) the Company is not under any further   obligation (whether actual or contingent) to provide any further advance or   financial accommodation to the Intercompany Sales Chargees under the   Intercompany Sales Agreement, the Intercompany Sales Chargees shall, at the   request (with reasonable notice) and cost of the Company, release and cancel   the Intercompany Sales Floating Charges and procure the reassignment to the   Company of the property and assets assigned to the Intercompany Sales   Chargees pursuant to the Intercompany Sales Floating Charges (to the extent   not otherwise sold, assigned or otherwise disposed of or applied in accordance   with this Debenture), subject to Clause  20.2 (Avoidance of Payments) and  19.9   (Settlement conditional) and without recourse to, or any representation or   warranty by, any Chargee or any of its nominees, and provided that:   (a) such release, cancellation and reassignment shall not in any way be   deemed to constitute a release, cancellation or reassignment (or any   other discharge) of the Security constituted by this Debenture in favour   of the Priority Chargee and the Contingent Chargee (including the   Priority Note Floating Charge and the Contingent Note Floating   Charge); and   (b) the Company hereby irrevocably agrees that, at the time at which the   Contingent Chargee grants any release, cancellation or reassignment   under this Clause 20.1.1, the Company shall enter into a deed of   confirmation (in a form acceptable to the Priority Chargee and the   Contingent Chargee) which confirms that notwithstanding any such   release, cancellation or reassignment, the Security constituted by this   Debenture in favour of the Priority Chargee and the Contingent   Chargee (including the Priority Note Floating Charge and the   Contingent Note Floating Charge) shall continue in full force and   effect until such Security is released pursuant to Clause 20.1.2 or   20.1.3 (as applicable).   20.2 Avoidance of Payments   If any Chargee considers that any amount paid or credited to or recovered by such   Chargee by or from the Company is capable of being avoided or reduced by virtue of   any bankruptcy, insolvency, liquidation or similar laws, the liability of the Company   under this Debenture and the security constituted by this Debenture shall continue and   such amount shall not be considered to have been irrevocably paid.     

 

       - 22 -       21. SUBSEQUENT AND PRIOR SECURITY INTERESTS   21.1 Subsequent security interests   If any Chargee at any time receives or is deemed to have received notice of any   subsequent Security or other interest affecting all or any part of the Charged Property   or any assignment or transfer of the Charged Property which is prohibited by the   terms of this Debenture, each payment thereafter by or on behalf of the Company to   each Chargee shall be treated as having been credited to a new account of the Chargee   receiving such payment and not as having been applied in reduction of the Secured   Obligations as at the time when (or at any time after) such Chargee received such   notice of such subsequent Security or other interest or such assignment or transfer.   21.2 Prior security interests   In the event of any action, proceeding or step being taken to exercise any powers or   remedies conferred by any prior ranking Security or upon the exercise by any Chargee   or any Receiver of any power of sale under this Debenture or any Collateral Right,   any Chargee may redeem any prior ranking Security over or affecting any Charged   Property or procure the transfer of any such prior ranking Security to itself.  Any   Chargee may settle and agree the accounts of the beneficiary of any such prior   Security and any accounts so settled and agreed will be conclusive and binding on the   Company.  All principal, interest, costs, charges, expenses and/or other amounts   relating to and/or incidental to any such redemption or transfer shall be paid by the   Company to such Chargee upon demand.   22. CURRENCY CONVERSION    For the purpose of or pending the discharge of any of the Secured Obligations each   Chargee may convert any money received, recovered or realised or subject to   application by it under this Debenture from one currency to another, as such Chargee   may think fit, and any such conversion shall be effected at such rate of exchange as   may be available to such Chargee for the time being for obtaining such other currency   with such first-mentioned currency.   23. STAMP TAXES   The Company shall pay all stamp, registration and other taxes to which this   Debenture, the Security contemplated in this Debenture and/or any judgment given in   connection with this Debenture is, or at any time may be, subject and shall, from time   to time, indemnify each Chargee on demand against any liabilities, costs, claims   and/or expenses resulting from any failure to pay or delay in paying any such tax.   24. DISCRETION AND DELEGATION   24.1 Discretion   Any liberty or power which may be exercised or any determination which may be   made under this Debenture by any Chargee or any Receiver may (subject to the terms   of this Debenture) be exercised or made in its absolute and unfettered discretion   without any obligation to give reasons.     

 

       - 23 -       24.2 Delegation   Each of any Chargee and any Receiver shall have full power to delegate (either   generally or specifically) the powers, authorities and discretions conferred on it by   this Debenture (including without limitation the power of attorney under Clause  17   (Power of Attorney)) on such terms and conditions as it shall see fit which delegation   shall not preclude any subsequent exercise, any subsequent delegation or any   revocation of such power, authority or discretion by any Chargee or any Receiver.   25. SET-OFF   Each Chargee may set off any matured obligation due from the Company under any   or all of the Secured Documents (to the extent beneficially owned by such Chargee)   against any matured obligation owed by such Chargee to the Company, regardless of   the place of payment, booking branch or currency of either obligation.  If such   obligations are in different currencies, such Chargee may convert either obligation at   a market rate of exchange in its usual course of business for the purpose of such set-   off.   26. CHANGES TO PARTIES   26.1 Successors   This Debenture shall be binding upon and inure to the benefit of each party hereto and   its and/or any subsequent successors and permitted assigns and transferees.  Without   prejudice to the foregoing, this Debenture shall remain in effect despite any   amalgamation or merger (however effected) relating to any Chargee; and references   to any Chargee herein shall be deemed to include any person who, under the laws of   its jurisdiction of incorporation or domicile, has assumed the rights and obligations of   such Chargee under this Debenture or to which, under such laws, those rights and   obligations have been transferred.   26.2 Assignment and Transfer by Chargees   Each Chargee may:   26.2.1 assign all or any of its rights under this Debenture; and   26.2.2 transfer all or any of its obligations (if any) under this Debenture,   to any person in accordance with the provisions of the Secured Documents.  Upon   such assignment and transfer taking effect, the assignee or transferee (as applicable)   shall acquire an interest in this Debenture.   26.3 No assignment or transfer by Company    The Company may not assign or transfer any or all of its rights (if any) and/or   obligations under this Debenture.     

 

       - 24 -       27. AMENDMENTS AND WAIVERS   Any provision of this Debenture may be amended or waived only by agreement in   writing between the Company and each Chargee.   28. THIRD PARTY RIGHTS   A person who is not a party to this Debenture has no right under the Contracts (Rights   of Third Parties) Ordinance (Cap. 623) to enforce or enjoy the benefit of any term of   this Debenture.   29. COUNTERPARTS   This Debenture may be executed in any number of counterparts, all of which taken   together shall constitute one and the same instrument.   30. GOVERNING LAW   This Debenture is governed by the laws of Hong Kong.   31. JURISDICTION   31.1 Hong Kong Courts   The courts of Hong Kong have exclusive jurisdiction to settle any dispute (a   "Dispute") arising out of, or connected with this Debenture (including a dispute   regarding the existence, validity or termination of this Debenture or the consequences   of its nullity).   31.2 Convenient Forum   The parties hereto agree that the courts of Hong Kong are the most appropriate and   convenient courts to settle Disputes between them and, accordingly, that they will not   argue to the contrary.   31.3 Exclusive Jurisdiction   This Clause 31 (Jurisdiction) is for the benefit of the Chargees only.  As a result and   notwithstanding Clause  31.1 (Hong Kong Courts), nothing herein shall prevent any   Chargee from taking proceedings relating to a Dispute in any other courts with   jurisdiction.  To the extent allowed by law any Chargee may take concurrent   proceedings in any number of jurisdictions.   31.4 Waiver of immunity   The Company waives generally all immunity it or its assets or revenues may otherwise   have in any jurisdiction, including immunity in respect of:   (a) the giving of any relief by way of injunction or order for specific performance   or for the recovery of assets or revenues; and/or     

 

       - 25 -       (b) the issue of any process against its assets or revenues for the enforcement of a   judgment or, in an action in rem, for the arrest, detention or sale of any of its   assets and revenues.   IN WITNESS WHEREOF this Debenture has been executed as a deed by the Company and   each Chargee and is intended to be and is hereby delivered by each Chargee and the   Company as a deed on the date specified above.                 

 

    

 

    

 

    

 

    

 

    

 

      Exhibit C      First Amendment to ASF License Agreement         

 

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

 

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

 

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

 

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

 

    

 

      Exhibit D      First Amendment to Cost Sharing Agreement      

 

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

 

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

 

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

 

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

 

    

 

      Exhibit E      Second Amendment to Poly/DSS License Agreement         

 

EXECUTION VERSION   SECOND AMENDMENT TO POLY/DSS LICENSE AGREEMENT    This Second Amendment (the “Second Amendment”), dated as of July 20, 2015, to the   License Agreement, effective as of July 5, 2010 (as modified by that certain Amendment No. 1   to License Agreement, effective as of April 3, 2011, and as further modified by that certain   Polysilicon Transfer Pricing Analysis and Report for the Calendar Year Ended December 31,   2013, the “Poly/DSS License Agreement”), is entered into by and between GTAT Corporation   (f/k/a GT Solar Incorporated) (“Licensor”), a Delaware corporation, and GT Advanced   Technologies Limited (f/k/a GT Solar Hong Kong, Limited) (“Licensee” and, together with   Licensor, the “Parties”), a limited liability company organized and existing under the laws of   Hong Kong.  Capitalized terms used in this First Amendment but not otherwise defined herein   shall have the meaning set forth in the Poly/DSS License Agreement.   RECITALS   WHEREAS, on October 6, 2014 (the “Petition Date”), Licensor, Licensee, GT Advanced   Equipment Holding LLC (“GT SPE”), GT Advanced Technologies, Inc. (“GT Parent”), GT   Equipment Holdings, Inc., Lindbergh Acquisition Corp., GT Sapphire Systems Holding LLC,   GT Advanced Cz LLC and GT Sapphire Systems Group LLC (collectively, the “Debtors”) filed   chapter 11 cases in the United States Bankruptcy Court for the District of New Hampshire (the   “Bankruptcy Court”);   WHEREAS, under the DSS/Poly License Agreement, Licensor granted Licensee, among   other things, a nonexclusive right and license to make, have made, assemble, have assembled,   use, sell, and/or import directional solidification systems and reactors for the production of   polysilicon in all countries outside of the United States;   WHEREAS, Licensor and Licensee are parties to: (a) that certain License Agreement,   effective as of April 1, 2011, as modified by that certain Sapphire Transfer Pricing Analysis and   Report for Fiscal Year Ended March 31, 2012, issued January 21, 2013 (the “ASF License   Agreement”); (b) that certain Agreement for Sharing Development Costs, effective as of April   11, 2011 (the “Cost Sharing Agreement”); (c) that certain Management and Administrative   Services Agreement, effective as of April 3, 2011 (the “2011 Services Agreement”); and (d) that   certain Management and Administrative Services Agreement, effective as of July 5, 2010 (the   “2010 Services Agreement” and, together with the ASF License Agreement, the Cost Sharing   Agreement, the Poly/DSS License Agreement, and the 2011 Services Agreement, the   “Prepetition Intercompany Agreements”);   WHEREAS, following extensive good faith, arm’s-length negotiations among Licensor,   GT SPE, Licensee, certain unaffiliated holders of notes issued by GT Parent, and other parties in   interest, Licensor, GT SPE, and Licensee have agreed to enter into that certain Intercompany   Settlement Agreement, dated as of July 20, 2015 (the “Intercompany Settlement Agreement”),   which resolves numerous intercompany issues, including, without limitation, the sale of their   advanced sapphire furnaces in the marketplace and the sharing of proceeds from such sales   among them;     

 

2      WHEREAS, Licensor and Licensee each desire to assume the Poly/DSS License   Agreement, as amended by this First Amendment, subject to the terms and conditions in the   Intercompany Settlement Agreement, including, without limitation, Licensee’s issuance of that   certain Contingent Note, dated July 20, 2015 (the “Contingent Note”) (a copy of which is   annexed to the Intercompany Settlement Agreement), to satisfy, among other things, the cure   costs under the Poly/DSS License Agreement.   WHEREAS, under the Intercompany Settlement Agreement, Licensee has agreed to issue   to Licensor that certain Priority Note, dated July 20, 2015 (the “Priority Note”) (a copy of which   is annexed to the Intercompany Settlement Agreement), to satisfy certain post-petition   administrative expense claims by Licensor against Licensee; and   WHEREAS, in connection with the Intercompany Settlement Agreement, Licensor, GT   SPE, and Licensee have entered into that certain Intercompany Sales Agreement, dated July 20,   2015 (the “Intercompany Sales Agreement”) (a copy of which is annexed to the Intercompany   Settlement Agreement) governing the sale of advanced sapphire furnaces by Licensor and GT   SPE to Licensee.    NOW, THEREFORE, in consideration of the mutual promises hereinafter set forth, the   Parties agree as follows:   1. AMENDMENTS TO POLY/DSS LICENSE AGREEMENT   1.1 Section 9.1 of the Poly/DSS License Agreement is hereby deleted in its entirety and   inserted in place thereof shall be the new Section 9.1:   The term of this Agreement will commence on the Effective Date and will   continue until the later of (a) the Maturity Date (as defined in the Priority Note) of   the Priority Note and (b) the date that the Contingent Note has been repaid in full   (including all interest accrued thereupon), unless terminated pursuant to this   Article IX; provided, that beginning on the date that is four years from   Bankruptcy Court approval of the Intercompany Settlement Agreement, each of   Licensor and Licensee may terminate this Agreement upon no less than three (3)   months prior written notice to the other.     1.2 The following new Sections 9.2 (v), (vi), and (vii) shall be added at the end of Section 9.2   of the Poly/DSS License Agreement:   (v)  Licensee is in breach of its obligation to pay royalty under Article III of this   Agreement and such failure to pay is not cured within 10 days after Licensor   provided notice of such non-payment to Licensee.   (vi)  An Event of Default (as defined under the Priority Note or the Contingent Note,   as applicable) has occurred under the Priority Note or the Contingent Note.   (vii)  Licensee is in material breach of any of its obligations under (a) the Intercompany   Settlement Agreement, (b) the Intercompany Sales Agreement, (c) the ASF     

 

3      License Agreement (as amended by that certain First Amendment to ASF License   Agreement, dated as of July 20, 2015), (d) the Cost Sharing Agreement (as   amended by that certain First Amendment to Cost Sharing Agreement, dated as of   July 20, 2015), (e) the 2010 Services Agreement (as amended by that certain First   Amendment to Management and Administrative Services Agreement (Effective   as of July 5, 2015), dated as of July 20, 2015), or (f) the 2011 Services Agreement   (as amended by that certain First Amendment to Management and Administrative   Services Agreement (Effective as of April 3, 2011), dated as of July 20, 2015),   and such breach is not cured within 10 days after Licensor provided notice of such   breach to Licensee.   1.3 The issuance of the Priority Note and the Contingent Note, together with the $10 million   cash payment under the Intercompany Settlement Agreement, resolves all of the Parties’   payment obligations under the Poly/DSS License Agreement through the end of the   second quarter of 2015.   2. MISCELLANEOUS   2.1 Except as otherwise amended herein, the terms and conditions of the Poly/DSS License   Agreement shall remain in full force and effect.   2.2 This First Amendment will be governed by and construed in accordance with the laws of   the State of New Hampshire, USA, without regards to its conflict of law provisions.   2.3 This First Amendment may be executed in counterparts, and when all parties have   executed a copy hereof, the executed copies taken together shall be deemed to be the full   and complete agreement of the Parties.   2.4 The effectiveness of this First Amendment and the obligations of each of the Parties   hereunder are conditioned upon entry of an order by the Bankruptcy Court approving the   Intercompany Settlement Agreement.   [remainder of page intentionally left blank]        

 

    

 

      Exhibit F      First Amendment to 2010 Services Agreement         

 

EXECUTION VERSION   FIRST AMENDMENT TO MANAGEMENT AND ADMINISTRATIVE SERVICES   AGREEMENT (EFFECTIVE AS OF JULY 5, 2010)    This First Amendment (the “First Amendment”), dated as of July 20, 2015, to the   Management and Administrative Services Agreement, effective as of July 5, 2010 (the “2010   Services Agreement”), is entered into by and between GTAT Corporation (f/k/a GT Solar   Incorporated) (“Provider”), a Delaware corporation, and GT Advanced Technologies Limited   (f/k/a GT Solar Hong Kong, Limited) (“Recipient” and, together with Provider, the “Parties”), a   limited liability company organized and existing under the laws of Hong Kong.  Capitalized   terms used in this First Amendment but not otherwise defined herein shall have the meaning set   forth in the 2010 Services Agreement.   RECITALS    WHEREAS, on October 6, 2015, Provider, Recipient, GT Advanced Equipment Holding   LLC (“GT SPE”), GT Advanced Technologies, Inc. (“GT Parent”), GT Equipment Holdings,   Inc., Lindbergh Acquisition Corp., GT Sapphire Systems Holding LLC, GT Advanced Cz LLC   and GT Sapphire Systems Group LLC filed chapter 11 cases in the United States Bankruptcy   Court for the District of New Hampshire (the “Bankruptcy Court”);    WHEREAS, Provider and Recipient are parties to: (a) that certain License Agreement,   effective as of April 1, 2011, as modified by that certain Sapphire Transfer Pricing Analysis and   Report for Fiscal Year Ended March 31, 2012, issued January 21, 2013 (the “ASF License   Agreement”); (b) that certain Agreement for Sharing Development Costs, effective as of April   11, 2011 (the “Cost Sharing Agreement”); (c) that certain License Agreement, effective as of   July 5, 2010, as modified by that certain Amendment No. 1 to License Agreement, effective as of   April 3, 2011, and as further modified by that certain Polysilicon Transfer Pricing Analysis and   Report for the Calendar Year Ended December 31, 2013 (the “Poly/DSS License Agreement”);   (d)  that certain Management and Administrative Services Agreement, effective as of April 3,   2011 (the “2011 Services Agreement” and, together with the ASF License Agreement, the Cost   Sharing Agreement, the Poly/DSS License Agreement, and the 2010 Services Agreement, the   “Prepetition Intercompany Agreements”);   WHEREAS, following extensive good faith, arm’s-length negotiations among Provider,   GT SPE, Recipient, certain unaffiliated holders of notes issued by GT Parent, and other parties in   interest, Provider, GT SPE, and Recipient have agreed to enter into that certain Intercompany   Settlement Agreement, dated as of July 20, 2015 (the “Intercompany Settlement Agreement”),   which resolves numerous intercompany issues, including, without limitation, the sale of their   ASF Furnaces in the marketplace and the sharing of proceeds from such sales among them;    WHEREAS, Provider and Recipient each desire to assume the 2010 Services Agreement,   as amended by this First Amendment, subject to the terms and conditions in the Intercompany   Settlement Agreement, including, without limitation, Party 2’s issuance of that certain   Contingent Note, dated July 20, 2015 (the “Contingent Note”) (a copy of which is annexed to the   Intercompany Settlement Agreement), to satisfy, among other things, the cure costs under the   Prepetition Intercompany Agreements;     

 

2      WHEREAS, under the Intercompany Settlement Agreement, Recipient has agreed to   issue to Provider that certain Priority Note, dated July 20, 2015 (the “Priority Note”) (a copy of   which is annexed to the Intercompany Settlement Agreement), to satisfy certain post-petition   administrative expense claims by Provider against Recipient; and   WHEREAS, in connection with the Intercompany Settlement Agreement, Provider, GT   SPE, and Recipient have entered into that certain Intercompany Sales Agreement, dated July 20,   2015 (the “Intercompany Sales Agreement”) (a copy of which is annexed to the Intercompany   Settlement Agreement) governing the sale of ASF Furnaces by Provider and GT SPE to   Recipient.    NOW, THEREFORE, in consideration of the mutual promises hereinafter set forth, the   Parties agree as follows:   1. AMENDMENTS TO 2010 SERVICES AGREEMENT   1.1 Section 2.1 of the 2010 Services Agreement is hereby deleted in its entirety and inserted   in place thereof shall be the following new Section 2.1:   The term of this Agreement will commence on the Effective Date and will   continue until the later of (a) the Maturity Date (as defined in the Priority Note) of   the Priority Note and (b) the date that the Contingent Note has been repaid in full   (including all interest accrued thereupon), unless terminated sooner as hereinafter   provided; provided, that beginning on the date that is four years from Bankruptcy   Court approval of the Intercompany Settlement Agreement, each of Provider and   Recipient may terminate this Agreement upon no less than three (3) months prior   written notice to the other.     1.2 The following provision shall be added to the end of Section 2.2 of the 2010 Services   Agreement:    In addition, this Agreement will terminate if: (i) an Event of Default (as defined   under the Priority Note or the Contingent Note, as applicable) has occurred under   the Priority Note or the Contingent Note; or (ii) Recipient is in material breach of   any of its obligations under (a) the Intercompany Settlement Agreement, (b) the   Intercompany Sales Agreement, (c) the ASF License Agreement (as amended by   that certain First Amendment to ASF License Agreement, dated as of July 20,   2015), (d) the Cost Sharing Agreement (as amended by that certain First   Amendment to Cost Sharing Agreement, dated as of July 20, 2015), (e) the   Poly/DSS License Agreement (as amended by that certain Second Amendment to   Poly/DSS License Agreement, dated as of July 20, 2015), or (f) the 2011 Services   Agreement (as amended by that certain First Amendment to Management and   Administrative Services Agreement (Effective as of April 3, 2011), dated as of   July 20, 2015), and such breach is not cured within 10 days after Provider   provided notice of such breach to Recipient.     

 

3      1.3 The issuance of the Priority Note and the Contingent Note, together with the $10 million   cash payment under the Intercompany Settlement Agreement, resolves all of the Parties’   payment obligations under the 2010 Services Agreement through the end of the second   quarter of 2015.   2. MISCELLANEOUS   2.1 Except as otherwise amended herein, the terms and conditions of the 2010 Services   Agreement shall remain in full force and effect.   2.2 This First Amendment will be governed by and construed in accordance with the laws of   Hong Kong, without regards to its conflict of law provisions.   2.3 This First Amendment may be executed in counterparts, and when all parties have   executed a copy hereof, the executed copies taken together shall be deemed to be the full   and complete agreement of the Parties.   2.4 The effectiveness of this First Amendment and the obligations of each of the Parties   hereunder are conditioned upon entry of an order by the Bankruptcy Court approving the   Intercompany Settlement Agreement.      [remainder of page intentionally left blank]           

 

    

 

      Exhibit G      First Amendment to 2011 Services Agreement         

 

EXECUTION VERSION   FIRST AMENDMENT TO MANAGEMENT AND ADMINISTRATIVE SERVICES   AGREEMENT (EFFECTIVE AS OF APRIL 3, 2011)    This First Amendment (the “First Amendment”), dated as of July 20, 2015, to the   Management and Administrative Services Agreement, effective as of April 3, 2011 (the “2011   Services Agreement”), is entered into by and between GTAT Corporation (f/k/a GT Solar   Incorporated) (“Provider”), a Delaware corporation, and GT Advanced Technologies Limited   (f/k/a GT Solar Hong Kong, Limited) (“Recipient” and, together with Provider, the “Parties”), a   limited liability company organized and existing under the laws of Hong Kong.  Capitalized   terms used in this First Amendment but not otherwise defined herein shall have the meaning set   forth in the 2011 Services Agreement.   RECITALS    WHEREAS, on October 6, 2015, Provider, Recipient, GT Advanced Equipment Holding   LLC (“GT SPE”), GT Advanced Technologies, Inc. (“GT Parent”), GT Equipment Holdings,   Inc., Lindbergh Acquisition Corp., GT Sapphire Systems Holding LLC, GT Advanced Cz LLC   and GT Sapphire Systems Group LLC filed chapter 11 cases in the United States Bankruptcy   Court for the District of New Hampshire (the “Bankruptcy Court”);    WHEREAS, Provider and Recipient are parties to: (a) that certain License Agreement,   effective as of April 1, 2011, as modified by that certain Sapphire Transfer Pricing Analysis and   Report for Fiscal Year Ended March 31, 2012, issued January 21, 2013 (the “ASF License   Agreement”); (b) that certain Agreement for Sharing Development Costs, effective as of April   11, 2011 (the “Cost Sharing Agreement”); (c) that certain License Agreement, effective as of   July 5, 2010, as modified by that certain Amendment No. 1 to License Agreement, effective as of   April 3, 2011, and as further modified by that certain Polysilicon Transfer Pricing Analysis and   Report for the Calendar Year Ended December 31, 2013 (the “Poly/DSS License Agreement”);   (d)  that certain Management and Administrative Services Agreement, effective as of July 5,   2010 (the “2010 Services Agreement” and, together with the ASF License Agreement, the Cost   Sharing Agreement, the Poly/DSS License Agreement, and the 2011 Services Agreement, the   “Prepetition Intercompany Agreements”);   WHEREAS, following extensive good faith, arm’s-length negotiations among Provider,   GT SPE, Recipient, certain unaffiliated holders of notes issued by GT Parent, and other parties in   interest, Provider, GT SPE, and Recipient have agreed to enter into that certain Intercompany   Settlement Agreement, dated as of July 20, 2015 (the “Intercompany Settlement Agreement”),   which resolves numerous intercompany issues, including, without limitation, the sale of their   ASF Furnaces in the marketplace and the sharing of proceeds from such sales among them;    WHEREAS, Provider and Recipient each desire to assume the 2011 Services Agreement,   as amended by this First Amendment, subject to the terms and conditions in the Intercompany   Settlement Agreement, including, without limitation, Party 2’s issuance of that certain   Contingent Note, dated July 20, 2015 (the “Contingent Note”) (a copy of which is annexed to the   Intercompany Settlement Agreement), to satisfy, among other things, the cure costs under the   Prepetition Intercompany Agreements;     

 

2      WHEREAS, under the Intercompany Settlement Agreement, Recipient has agreed to   issue to Provider that certain Priority Note, dated July 20, 2015 (the “Priority Note”) (a copy of   which is annexed to the Intercompany Settlement Agreement), to satisfy certain post-petition   administrative expense claims by Provider against Recipient; and   WHEREAS, in connection with the Intercompany Settlement Agreement, Provider, GT   SPE, and Recipient have entered into that certain Intercompany Sales Agreement, dated July 20,   2015 (the “Intercompany Sales Agreement”) (a copy of which is annexed to the Intercompany   Settlement Agreement) governing the sale of ASF Furnaces by Provider and GT SPE to   Recipient.    NOW, THEREFORE, in consideration of the mutual promises hereinafter set forth, the   Parties agree as follows:   1. AMENDMENTS TO 2011 SERVICES AGREEMENT   1.1 Section 2.1 of the 2011 Services Agreement is hereby deleted in its entirety and inserted   in place thereof shall be the new Section 2.1:   The term of this Agreement will commence on the Effective Date and will   continue until the later of (a) the Maturity Date (as defined in the Priority Note) of   the Priority Note and (b) the date that the Contingent Note has been repaid in full   (including all interest accrued thereupon), unless terminated sooner as hereinafter   provided; provided, that beginning on the date that is four years from Bankruptcy   Court approval of the Intercompany Settlement Agreement, each of Provider and   Recipient may terminate this Agreement upon no less than three (3) months prior   written notice to the other.     1.2 The following provision shall be added to the end of Section 2.2 of the 2010 Services   Agreement:    In addition, this Agreement will terminate if: (i) an Event of Default (as defined   under the Priority Note or the Contingent Note, as applicable) has occurred under   the Priority Note or the Contingent Note; or (ii) Recipient is in material breach of   any of its obligations under (a) the Intercompany Settlement Agreement, (b) the   Intercompany Sales Agreement, (c) the ASF License Agreement (as amended by   that certain First Amendment to ASF License Agreement, dated as of July 20,   2015), (d) the Cost Sharing Agreement (as amended by that certain First   Amendment to Cost Sharing Agreement, dated as of July 20, 2015), (e) the   Poly/DSS License Agreement (as amended by that certain Second Amendment to   Poly/DSS License Agreement, dated as of July 20, 2015), or (f) the 2010 Services   Agreement (as amended by that certain First Amendment to Management and   Administrative Services Agreement (Effective as of July 5, 2015), dated as of July   20, 2015), and such breach is not cured within 10 days after Provider provided   notice of such breach to Recipient.     

 

3      1.3 The issuance of the Priority Note and the Contingent Note, together with the $10 million   cash payment under the Intercompany Settlement Agreement, resolves all of the Parties’   payment obligations under the 2011 Services Agreement through the end of the second   quarter of 2015.   2. MISCELLANEOUS   2.1 Except as otherwise amended herein, the terms and conditions of the 2011 Services   Agreement shall remain in full force and effect.   2.2 This First Amendment will be governed by and construed in accordance with the laws of   Hong Kong, without regards to its conflict of law provisions.   2.3 This First Amendment may be executed in counterparts, and when all parties have   executed a copy hereof, the executed copies taken together shall be deemed to be the full   and complete agreement of the Parties.   2.4 The effectiveness of this First Amendment and the obligations of each of the Parties   hereunder are conditioned upon entry of an order by the Bankruptcy Court approving the   Intercompany Settlement Agreement.      [remainder of page intentionally left blank]           

 

    

 

      Exhibit H      Contingent Note        

 

EXECUTION VERSION      CONTINGENT NOTE   $130,000,000.00 July 20, 2015   For value received, GT Advanced Technologies Limited (“GT Hong Kong” or “Maker”),   a Hong limited liability company, hereby promises to pay to GTAT Corporation, a Delaware   corporation (“GTAT Corp.” and, together with any transferee permitted under the terms hereof,   “Holder”), the principal amount of $130,00,000.00, together with interest thereon calculated in   accordance with the provisions of this promissory note (as amended, restated, supplemented, or   otherwise modified from time to time, the “Note”).   1. Definitions.   1.1 “2010 Services Agreement” means that certain Management and Administrative   Services Agreement, effective as of July 5, 2010, between GTAT Corp. and GT Hong Kong, as   amended by that certain First Amendment to Management and Administrative Services   Agreement (Effective as of July 5, 2015), dated as of July 20, 2015.   1.2 “2011 Services Agreement” means that certain Management and Administrative   Services Agreement, effective as of April 3, 2011, between GTAT Corp. and GT Hong Kong, as   amended by that certain First Amendment to Management and Administrative Services   Agreement (Effective as of April 3, 2011), dated as of July 20, 2015.   1.3 “ASF Furnaces” means advanced sapphire furnaces.   1.4 “ASF Furnace Sale” means the sale of any ASF Furnace by GT Hong Kong,   regardless of whether such ASF Furnace is or was owned by GTAT Corp., GT Hong Kong, or   GT SPE.   1.5 “ASF License Agreement” means that certain License Agreement, by and   between GTAT Corp. and GT Hong Kong, effective as of April 1, 2011, as modified by that   certain Sapphire Transfer Pricing Analysis and Report for the Fiscal Year Ended March 31,   2012, issued January 21, 2013, and as amended by that certain First Amendment to ASF License   Agreement, dated as of July 20, 2015.   1.6 “Bankruptcy Code” means title 11 of the United States Code, as in effect from   time to time.   1.7 “Business Day” means any day that is not a Saturday, Sunday, or other day on   which banks are authorized or required to close in the state of New York.   1.8 “Chapter 11 Cases” means the voluntary chapter 11 bankruptcy cases initiated by   GT Advanced Technologies Inc. and its affiliated debtors in the Court, which are jointly   administered under Case No. 14-11916-HJB.     

 

2   1.9 “Contingent Note Collateral” means (i) 100% of the amount of proceeds from   ASF Furnace Sales received by GT Hong Kong that is owed to GTAT Corp. under the terms of   the Intercompany Settlement Agreement, (ii) 100% of the amount of proceeds from ASF Furnace   Sales received by GT Hong Kong that is owed to GT SPE under the terms of the Intercompany   Settlement Agreement and (iii) 50% of the amount of proceeds from ASF Furnace Sales retained   by GT Hong Kong, and any proceeds of the foregoing; all subject to a carve-out for the benefit   of GT Hong Kong of up to $10 million.   1.10 “Contingent Payment” has the meaning set forth in the Intercompany Settlement   Agreement.   1.11 “Cost Sharing Agreement” means that certain Agreement  for Sharing   Development Costs, by and between GTAT Corp. and GT Hong Kong, effective as of April 1,   2011, as amended by that certain First Amendment to Cost Sharing Agreement, dated as of July   20, 2015.    1.12 “Court” means the United States Bankruptcy Court for the District of New   Hampshire.   1.13 “Debenture” means that certain Debenture between GT Hong Kong, GTAT   Corp., and GT SPE, dated as of July 20, 2015.   1.14 “Debtors” means GT Advanced Technologies Inc. and its affiliated debtors in the   Chapter 11 Cases.   1.15 “DIP Financing” means the debtor in possession financing to be provided by   certain holders of the 3.00% Senior Convertible Notes due 2017 and 3.00% Senior Convertible   Notes issued by GT Advanced Technologies Inc.   1.16 “Dollars” or “$” means United States dollars.   1.17 “Event of Default” has the meaning set forth in Section 7.1 hereof.   1.18 “GT SPE” means GT Advanced Equipment Holding LLC.   1.19 “Intercompany Sales Agreement” means that certain Intercompany Sales   Agreement, dated July 20, 2015, by and among GTAT Corp., GT Hong Kong, and GT SPE.   1.20 “Intercompany Settlement Agreement” means that certain Intercompany   Settlement Agreement, dated July 20, 2015, by and among GTAT Corp., GT Hong Kong, and   GT SPE.   1.21 “Priority Note” means that certain Priority Note made by GT Hong Kong in favor   of GTAT Corp. of even date herewith (as amended, restated, supplemented, or otherwise   modified from time to time).   1.22 “Obligations” means all principal, interest, fees (if any), charges, expenses,   attorneys’ fees, and any other sum chargeable to Maker under this Note.     

 

3   1.23 “Poly/DSS License Agreement” means that certain License Agreement, by and   between GTAT Corp. and GT Hong Kong, effective as of July 5, 2010, as amended by that   certain Amendment No. 1 to License Agreement, effective as of April 3, 2011, as further   modified by that certain Polysilicon Transfer Pricing Analysis and Report for the Calendar Year   Ended December 31, 2013), and as further amended by that certain First Amendment to   Poly/DSS License Agreement, dated as of July 20, 2015.   1.24 “Recourse Sub-Obligation” shall mean $45,000,000.00 of the principal amount of   this Note.   2. Interest.  The Note shall bear interest on the outstanding principal amount thereof at a   rate per annum equal to 12.5%, to be paid in kind on a monthly basis, provided that any such   interest paid in kind shall accrue and be capitalized and be added to the aggregate principal   balance of this Note in arrears on a monthly basis.   3. Payment of Principal and Interest on Note.   3.1 Scheduled Payments.  This Note shall amortize solely by application of the   Contingent Payment in accordance with the Intercompany Settlement Agreement.   3.2 Application of Payments.  Payments under this Note shall be applied (a) first, to   the payment of accrued interest hereunder until all such interest is paid, and (b) second, to the   repayment of the principal outstanding hereunder.    4. Treatment of Note; Set-Off; Taxes   4.1 The obligations of GT Hong Kong to pay the Contingent Payments under the   Contingent Note when due and payable, shall be treated as allowed administrative expense   claims under sections 503(b) and 507(a)(2) of the Bankruptcy Code against GT Hong Kong in   the Chapter 11 Cases.  The Obligations under the Contingent Note shall not be subject to setoff   or recoupment.   4.2 All payments to be made to Holder under this Note shall be made free and clear of   and (save as required by law) without any deduction for or on account of any tax, withholding,   charges, set-off or counterclaim (except for any income or profit tax).  If Maker is required by   law to make a deduction or withholding (except for any income or profit tax) from any payment   made under this Note, then the sum payable by Maker in respect of which such deduction or   withholding is required to be made shall be increased to the extent necessary to ensure that, after   the making of such deduction or withholding (including any deduction or withholding applicable   to additional sums payable under this Section 4.3), Holder receives and retains (free from any   liability in respect of any such deduction or withholding) a net sum equal to the sum which it   would have received and so retained had no such deduction or withholding been made or been   required to be made.  If Maker makes any payment under this Note in respect of which it is   required by law to make any deduction or withholding (except for any income or profit tax), then   it shall pay the full amount to be deducted or withheld to the relevant taxation or other authority   within the time allowed for such payment under applicable law and shall deliver to Holder,   within thirty (30) calendar days after it has made such payment to the applicable authority, an     

 

4   original receipt or other appropriate evidence issued by such authority evidencing the payment to   such authority of all amounts so required to be deducted or withheld from such payment.   5. Covenants   5.1 Total cash disbursements made by GT Hong Kong, excluding, without   duplication, (i) cash expenditures with respect to fully executed purchase orders that will be   accounted for as costs of goods sold when revenue is recognized, provided, that for cash   expenditures beginning on July 1, 2015, such expenditures related to each fully executed   purchase order shall not exceed the total revenue to be recognized over the life of the applicable   fully executed purchase order (irrespective of any required revenue deferrals), (ii) payments to   GTAT Corp. and any cash withholding taxes related to such payments that are royalty payments,   (iii) costs related directly to the shipping and installation of sold ASF Furnaces and sold furnace   components (including cash taxes related directly to such shipping and installation), (iv) costs   related directly to seed purchases pursuant to the Seed Agreement (as defined in the Debtors’   motion, dated March 30, 2015 [Docket # 1544]), and (v) payments of certain amounts to Kerry   Logistics in accordance with the Stipulation and Agreed Order entered by the Bankruptcy Court   [Docket # 1668], shall not exceed (a) $4.5 million in Q3 fiscal year 2015 (commencing July 5,   2015 and ending September 26, 2015), (b) $3.75 million in Q4 fiscal year 2015 (commencing   September 27, 2015 and ending December 31, 2015), and (c) $2.50 million per every fiscal   quarter thereafter (Q1 fiscal year 2016 commencing January 1, 2016 and ending April 2, 2016   and Q2 fiscal year 2016 commencing April 3, 2016 and ending July 2, 2016).   5.2 GT Hong Kong shall provide monthly cash reports to GTAT Corp. with copies to   the legal and financial advisors of GTAT Corp., GT SPE, the lenders under the DIP Financing,   and the official committee of unsecured creditors appointed in the Chapter 11 Cases.   6. Security Interest   6.1 Maker hereby grants to Holder a security interest in the Contingent Note   Collateral to secure all of Maker’s Obligations.  Maker hereby authorizes Holder to file financing   statements describing the Contingent Note Collateral and to take any and all other steps   necessary or advisable to perfect or protect such security interest.     6.2 To secure all of Maker’ Obligations, Maker also grants to Holder a floating   charge in the Contingent Note Collateral, pursuant to the Debenture; provided, however, that   nothing in the Debenture shall be deemed or interpreted to modify the rights set forth in this   Note.   6.3 The security interest securing this Note shall be (i) junior to the security interest   securing the Priority Note and (ii) senior to the security interest securing the Intercompany Sales   Agreement.    6.4 Under a plan of reorganization for GT Hong Kong in its Chapter 11 Case, the   Recourse Sub-Obligation shall be subject to treatment as a recourse general unsecured claim of   GTAT Corp. against GT Hong Kong (which will be reduced dollar-for-dollar by any payments   upon this Note).     

 

5   6.5 Maker agrees to execute any further documents, and to take any further actions,   reasonably requested by Holder to evidence or perfect the security interests granted under this   Article 6, to maintain the perfection and priority of these security interests, or to effectuate the   rights granted to Holder in this Article 6.    7. Events of Default.   7.1 Definition.  For purposes of this Note, an “Event of Default” shall be deemed to   have occurred if:   (a) Maker fails to pay when due and payable the full amount of interest then   accrued on this Note or the full amount of any principal payment on this Note;    (b) An Event of Default has occurred under the Priority Note;   (c) GT Hong Kong is in material breach of any of its obligations under this   Note (other than the failure to pay when due and payable the full amount of interest then accrued   on this note or the full amount of any principal payment on this Note), the Intercompany   Settlement Agreement, the ASF License Agreement, the Cost Sharing Agreement, the Poly/DSS   License Agreement, the 2010 Services Agreement, or the 2011 Services Agreement, and such   breach is not cured within 10 days after GTAT Corp. provided notice of such breach to GT Hong   Kong;    (d) GTAT Corp. and its direct and indirect subsidiaries organized in the   United States have less than $22,500,000 in unrestricted cash;   (e) The Bankruptcy Court enters an order authorizing the sale of all or   substantially all assets of GTAT Corp. at a time when the DIP Financing will not have been   repaid in full on or before consummation of such a sale; or   (f) The Chapter 11 Case of either GTAT Corp. or GT Hong Kong is   converted to a case under chapter 7 of the Bankruptcy Code.   7.2 Consequences of Events of Default.   (a) If an Event of Default has occurred, the aggregate principal amount of this   Note (together with all accrued interest thereon and all other amounts due and payable with   respect thereto) shall become immediately due and payable without any action on the part of   Holder, and Maker shall immediately pay to Holder all amounts due and payable with respect to   this Note.   (b) If an Event of Default has occurred, Holder may pursue any and all   remedies available at law (including, but not limited to, those available under the provisions of   the New York Uniform Commercial Code and those set forth in the Debenture) or in equity to   enforce the security interests granted hereunder by Maker to Holder (subject to the carve-out   provisions of the Contingent Note Collateral), including, without limitation:     

 

6   (i) file suit and obtain judgment and, in conjunction with any action,   seek any ancillary remedies provided by law, including levy of   attachment and garnishment,   (ii) demand that Maker make the Contingent Note Collateral available   to Holder as it may direct (and Maker hereby agrees to comply   with such demand), and     (iii) with or without taking possession, sell, lease, or otherwise dispose   of the Contingent Note Collateral at public or private sale in   accordance with the New York Uniform Commercial Code,   which remedies may be pursued separately, successively, or simultaneously.   (c) Holder shall also have any other rights that Holder may have been   afforded under any contract or agreement at any time and any other rights that Holder may have   pursuant to applicable law.   (d) Maker hereby waives diligence, presentment, protest and demand, and   notice of protest and demand, dishonor, and nonpayment of this Note, and expressly agrees that   this Note, or any payment hereunder, may be extended from time to time and that Holder hereof   may accept security for this Note or release security for this Note, all without in any way   affecting the liability of Maker hereunder.   (e) The rights and remedies of Holder under this Note are cumulative.  Holder   shall have all other rights and remedies not inconsistent herewith as provided under the New   York Uniform Commercial Code, by law, or in equity.  No exercise by Holder of one right or   remedy shall be deemed an election, and no waiver by Holder of any Event of Default shall be   deemed a continuing waiver.  No delay by Holder shall constitute a waiver, election, or   acquiescence by it.   8. Attorney’s Fees.  Maker agrees to pay or reimburse upon demand Holder for all of its   reasonable out-of-pocket costs and expenses (including reasonable attorney’s fees) incurred in   connection with the enforcement of Maker’s Obligations or the exercise of any rights or   remedies hereunder or under applicable law, including, without limitation, the exercise of rights   and remedies with respect to the Contingent Note Collateral.   9. Amendment and Waiver.  Except as otherwise expressly provided herein, the   provisions of this Note may be amended and Maker may take any action herein prohibited, or   omit to perform any act herein required to be performed by it, if Maker has obtained the written   consent of Holder of this Note.   10. Assignment and Transfer.  Holder may assign at any time (or grant a participation   interest at any time in) this Note to any of its affiliates, any financial institutions, or any other   person (including upon enforcement of rights by any secured creditor of the Holder), in which   event, the assignee shall have, to the extent of such assignment, the same rights and benefits as it   would if it were Holder, except as otherwise provided by the terms of such assignment or   participation.     

 

7   11. Cancellation.  After all principal and accrued interest at any time owed on this Note has   been paid in full, this Note shall be surrendered to Maker for cancellation and shall not be   reissued.   12. Payments.  All payments to be made to Holder shall be made in the lawful money of the   United States of America in immediately available funds.   13. Place of Payment.  Payments of principal and interest shall be delivered to Holder at   such address as is specified by prior written notice by Holder.   14. Governing Law.  All questions concerning the construction, validity, and interpretation   of this Note will be governed by and construed in accordance with the domestic laws of the State   of New York, without giving effect to any choice of law or conflict of law provision or rule   (whether of the State of New York or any other jurisdiction) that would cause the application of   the laws of any jurisdiction other than the State of New York.   15. Loss, Theft, Destruction, or Mutilation of Note.  Upon receipt by Maker of evidence   reasonably satisfactory to Maker of the loss, theft, destruction or mutilation of this Note, and, in   case of loss, theft or destruction, upon receipt of indemnity or security reasonably satisfactory to   Maker or, in case of mutilation, upon surrendering this Note for cancellation, and upon   reimbursement to Maker of all reasonable expenses incidental thereto, Maker will make and   deliver a new note of like tenor in lieu of this Note.  Any note made and delivered in accordance   with the provisions of this paragraph shall be dated as of the date hereof.   16. Waiver of Presentment, Demand, and Dishonor.  Maker hereby waives presentment   for payment, protest, demand, notice of protest, notice of nonpayment, and diligence with respect   to this Note, and waives and renounces all rights to the benefits of any statute of limitations or   any moratorium, appraisement, exemption, or homestead now provided or that hereafter may be   provided by any federal or applicable state statute, including, but not limited to, exemptions   provided by or allowed under the Bankruptcy Code, both as to itself and as to all of its property,   whether real or personal, against the enforcement and collection of the obligations evidenced by   this Note and any and all extensions, renewals, and modifications hereof.   17. Usury Laws.  It is the intention of the Maker and Holder to conform strictly to all   applicable usury laws now or hereafter in force, and any interest payable under this Note shall be   subject to reduction to the amount not in excess of the maximum legal amount allowed under the   applicable usury laws as now or hereafter constructed by the courts having jurisdiction over such   matters.  If the maturity of this Note is accelerated by reason of an Event of Default or otherwise,   then earned interest may never include more than the maximum amount permitted by law,   computed from the date hereof until payment, and any interest in excess of the maximum amount   permitted by law shall be canceled automatically and, if theretofore paid, shall, at the option of   Holder, either be rebated to Maker or credited on the principal amount of this Note, or if this   Note has been paid, then the excess shall be rebated to Maker.  The aggregate amount of all   interest (whether designated as interest, service charges, points, or otherwise) contracted for,   chargeable, or receivable under this Note shall under no circumstances exceed the maximum   legal rate upon the unpaid principal balance of this Note remaining unpaid from time to time.  If   such interest does exceed the maximum legal rate, it shall be deemed a mistake and such excess     

 

8   shall be canceled automatically and, if theretofore paid, rebated to Maker or credited on the   principal amount of this Note, or if this Note has been repaid, then such excess shall be rebated   to Maker.   18. Waiver of Jury Trial; Consent to Jurisdiction.  Maker (and, by virtue of its acceptance   hereof, Holder) hereby irrevocably waive all right to trial by jury in any litigation, action,   proceeding, cross-claim, or counterclaim in any court (whether based on contract, tort, or   otherwise) arising out of, relating to, or in connection with (a) this Note or the validity,   performance, interpretation, collection, or enforcement hereof or (b) the actions of such party in   the negotiation, authorization, execution, delivery, administration, performance, or enforcement   hereof.  Maker (and, by virtue of its acceptance hereof, Holder) further hereby waive any right of   offset or right to interpose any counterclaim in any such action, except for compulsory   counterclaims.  All actions and proceedings arising out of or relating to this Agreement shall be   heard and determined in the Bankruptcy Court, or if the Bankruptcy Court no longer has   jurisdiction or abstains, then in the state courts of New York sitting in New York City in the   Borough of Manhattan or, to the extent subject matter jurisdiction exists therefor, the United   States District Court for the District of New York, and the Maker and Holder irrevocably submit   to the exclusive jurisdiction of such courts in respect of any such actions or proceedings.      [Remainder of Page Intentionally Left Blank]        

 

    

 

      Exhibit I      Intercompany Sales Agreement    

 

EXECUTION VERSION   INTERCOMPANY SALES AGREEMENT   This Intercompany Sales Agreement (the “Intercompany Sales Agreement”), dated as of   July 20, 2015, is entered into by and among GT Advanced Technologies Limited (“GT Hong   Kong”), a Hong Kong limited liability company, GTAT Corporation (“GTAT Corp.”), a   Delaware corporation, and GT Advanced Equipment Holding LLC (“GT SPE”), a Delaware   limited liability company.  GT Hong Kong, GTAT Corp., and GT SPE are referred to herein   each as a “Party” and, collectively, as the “Parties.”   RECITALS   WHEREAS, on October 6, 2014 (the “Petition Date”), GTAT Corp., GT Hong Kong, GT   SPE, GT Advanced Technologies, Inc. (“GT Parent”), GT Equipment Holdings, Inc., Lindbergh   Acquisition Corp., GT Sapphire Systems Holding LLC, GT Advanced Cz LLC and GT Sapphire   Systems Group LLC (collectively, “GTAT” or the “Debtors”) filed chapter 11 cases (the   “Chapter 11 Cases”) in the United States Bankruptcy Court for the District of New Hampshire   (the “Bankruptcy Court”);   WHEREAS, GTAT Corp. and GT SPE collectively own more than 2,100 ASF Furnaces   (as defined below), and GT Hong Kong owns approximately 240 ASF Furnaces;   WHEREAS, GT Hong Kong and GTAT Corp. are parties to: (a) that certain License   Agreement, effective as of April 1, 2011, as modified by that certain Sapphire Transfer Pricing   Analysis and Report for Fiscal Year Ended March 31, 2012, issued January 21, 2013 (the “ASF   License Agreement”); (b) that certain Agreement for Sharing Development Costs, effective as of   April 11, 2011 (the “Cost Sharing Agreement”); (c) that certain License Agreement, effective as   of July 5, 2010, as modified by that certain Amendment No. 1 to License Agreement, effective as   of April 3, 2011, and as further modified by that certain Polysilicon Transfer Pricing Analysis   and Report for the Calendar Year Ended December 31, 2013 (the “Poly/DSS License   Agreement”); (d) that certain Management and Administrative Services Agreement, effective as   of July 5, 2010 (the “2010 Services Agreement”); and (e) that certain Management and   Administrative Services Agreement, effective as of April 3, 2011 (the “2011 Services   Agreement” and, together with the ASF License Agreement, the Cost Sharing Agreement, the   Poly/DSS License Agreement, and the 2010 Services Agreement, the “Prepetition Intercompany   Agreements”);   WHEREAS, under the ASF License Agreement, GTAT Corp. granted GT Hong Kong,   among other things, the exclusive right and license (without reservation of right to GTAT Corp.)   to make, have made, assemble, have assembled, use, sell, and/or import ASF Furnaces in all   countries outside of the United States;   WHEREAS, under the Cost Sharing Agreement, (a) GTAT Corp. and GT Hong Kong   agreed, among other things, to share the costs of the development of improvements to the   original technology platform licensed under the ASF License Agreement (such improvements,   the “Improvements”) and (b) GTAT Corp. and GT Hong Kong each received the exclusive right   and licenses (without reservation of right of the other party) to make, use, sell and/or import,     

 

2   copy, display, create derivative works, or otherwise exploit the Improvements within each   party’s respective territory;   WHEREAS, GTAT Corp. asserts that (a) it did not provide the most recent version   of 165 kg ASF Furnace technology to GT Hong Kong prior to the Petition Date and (b) even if it   has a legal obligation to provide such technology to GT Hong Kong, GT Hong Kong must first   pay its share of the development costs for such technology under the Cost Sharing Agreement;   WHEREAS, under the current structure of the ASF License Agreement and the Cost   Sharing Agreement, GTAT Corp., GT SPE, and GT Hong Kong require each other’s cooperation   in order to sell any of their ASF Furnaces outside the United States;   WHEREAS, following extensive good faith, arm’s-length negotiations among GTAT   Corp., GT SPE, GT Hong Kong, certain unaffiliated holders of notes issued by GT Parent, and   other parties in interest, GTAT Corp., GT SPE, and GT Hong Kong have agreed to enter into   that certain Intercompany Settlement Agreement, dated as of July 20, 2015 (the “Intercompany   Settlement Agreement”), which resolves numerous intercompany issues between and among the   Parties, including, without limitation, with respect to the sale of their ASF Furnaces in the   marketplace and the sharing of proceeds from such sales among them;   WHEREAS, under the Intercompany Settlement Agreement, among other things, GT   Hong Kong has agreed to issue to GTAT Corp. (a) that certain Priority Note, dated July 20, 2015   (the “Priority Note”) (a copy of which is annexed to the Intercompany Settlement Agreement), to   satisfy certain post-petition administrative expense claims by GTAT Corp. against GT Hong   Kong, and (b) that certain Contingent Note, dated July 20, 2015 (the “Contingent Note”) (a copy   of which is annexed to the Intercompany Settlement Agreement), to satisfy, among other things,   the cure costs under the Prepetition Intercompany Agreements; and   WHEREAS, the Parties desire, subject to the terms of the Intercompany Settlement   Agreement and in accordance with the terms of this Intercompany Sales Agreement, to allocate   among the Parties certain rights, responsibilities, and obligations arising from purchase orders,   purchase agreements, invoices, and/or other purchase documentation (each, a “Purchase Order”)   to be entered into, performed under, accepted, or issued by GT Hong Kong and certain third   parties located outside of the United States (each such third party, a “Customer”) and pursuant to   which GT Hong Kong will be obligated to sell ASF Furnaces to such Customers.   NOW, THEREFORE, in consideration of the mutual promises hereinafter set forth, the   Parties agree as follows:   1. DEFINITIONS   For purposes of this Agreement, the following definitions shall apply to the terms set   forth below wherever they appear:   1.1 “Accounts” has the meaning set forth in Article 9 of the New York Uniform Commercial   Code.     

 

3   1.2 “Approval Order” has the meaning set forth in Section 6.2 hereof.   1.3 “Approval Date” means the date on which the Approval Order is entered by the   Bankruptcy Court.   1.4 “ASF Furnaces” means (a) advanced sapphire furnaces and (b) all components, parts,   processes, and accessories associated therewith.   1.5 “Combined Sale” has the meaning set forth in Section 3.4 hereof.   1.6 “Debenture” means that certain Debenture between GT Hong Kong, GTAT Corp., and   GT SPE, dated as of July 20.   1.7 “GT Hong Kong ASF Furnaces” means ASF Furnaces owned by GT Hong Kong as of   the date of this Intercompany Sales Agreement.   1.8 “GT SPE ASF Furnaces” means ASF Furnaces owned by GT SPE as of the date of this   Intercompany Sales Agreement.   1.9 “GT SPE Collateral” means (a) all of GT Hong Kong’s now owned or hereafter acquired   Accounts that in any way relate to ASF Furnaces that are or were the subject of   Intercompany Sales made by GT SPE to GT Hong Kong, (b) all of GT Hong Kong’s now   owned or hereafter acquired Letter-of-Credit Rights that in any way relate to ASF   Furnaces that are or were the subject of Intercompany Sales made by GT SPE to GT   Hong Kong, (c) all of GT Hong Kong’s now owned or hereafter acquired rights in and to   Supporting Obligations (including guarantees and Letter-of-Credit Rights) that in any   way relate to ASF Furnaces that are or were the subject of Intercompany Sales made by   GT SPE to GT Hong Kong, (d) all of GT Hong Kong’s now owned or hereafter acquired   (i) rights of reclamation, replevin, or recovery, (ii) mechanic’s liens or other liens,   (iii) rights of setoff, and (iv) other rights or remedies, in each case, that in any way relate   to ASF Furnaces that are or were the subject of Intercompany Sales made by GT SPE to   GT Hong Kong, (e) all of GT Hong Kong’s now owned or hereafter acquired rights in   respect of returned goods arising in relation to ASF Furnaces that were the subject of   Intercompany Sales made by GT SPE to GT Hong Kong, (f) all of GT Hong Kong’s now   owned or hereafter acquired rights in any deposits in relation to ASF Furnaces that were   the subject of Intercompany Sales made by GT SPE to GT Hong Kong, and (g) any and   all proceeds of any of the foregoing.   1.10 “GTAT Corp. ASF Furnaces” means ASF Furnaces owed by GTAT Corp. as of the date   of this Intercompany Sales Agreement.    1.11 “GTAT Corp. Collateral” means (a) all of GT Hong Kong’s now owned or hereafter   acquired Accounts that in any way relate to ASF Furnaces that are or were the subject of   Intercompany Sales made by GTAT Corp. to GT Hong Kong, (b) all of GT Hong Kong’s   now owned or hereafter acquired Letter-of-Credit Rights that in any way relate to ASF   Furnaces that are or were the subject of Intercompany Sales made by GTAT Corp. to GT     

 

4   Hong Kong, (c) all of GT Hong Kong’s now owned or hereafter acquired rights in and to   Supporting Obligations (including guarantees and Letter-of-Credit Rights) that in any   way relate to ASF Furnaces that are or were the subject of Intercompany Sales made by   GTAT Corp. to GT Hong Kong, (d) all of GT Hong Kong’s now owned or hereafter   acquired (i) rights of reclamation, replevin, or recovery, (ii) mechanic’s liens or other   liens, (iii) rights of setoff, and (iv) other rights or remedies, in each case, that in any way   relate to ASF Furnaces that are or were the subject of Intercompany Sales made by   GTAT Corp. to GT Hong Kong, (e) all of GT Hong Kong’s now owned or hereafter   acquired rights in respect of returned goods arising in relation to ASF Furnaces that were   the subject of Intercompany Sales made by GTAT Corp. to GT Hong Kong, (f) all of GT   Hong Kong’s now owned or hereafter acquired rights in any deposits in relation to ASF   Furnaces that were the subject of Intercompany Sales made by GTAT Corp. to GT Hong   Kong, and (g) any and all proceeds of any of the foregoing.   1.12 “Intercompany Sale” has the meaning set forth in Section 2.1 hereof.   1.13 “Letter-of-Credit Rights” has the meaning set forth in Article 9 of the New York   Uniform Commercial Code.   1.14 “Mesa ASF Price” has the meaning set forth in Section 2.4 hereof.   1.15 “Mesa ASF Furnaces” means, collectively, the GTAT Corp. ASF Furnaces and the GT   SPE ASF Furnaces.   1.16 “Supporting Obligations” has the meaning set forth in Article 9 of the New York   Uniform Commercial Code.   2. INTERCOMPANY SALE OF MESA ASF FURNACES   2.1 Intercompany Sales.  In furtherance of Purchase Orders,   (a) GTAT Corp. agrees to sell GTAT Corp. ASF Furnaces to GT Hong Kong, and   GT Hong Kong agrees to purchase such GTAT Corp. ASF Furnaces from GTAT   Corp., and   (b) GT SPE agrees to sell GT SPE ASF Furnaces to GT Hong Kong, and GT Hong   Kong agrees to purchase such GT SPE ASF Furnaces from GT SPE (all such   sales described in clauses (a) and (b), the “Intercompany Sales”),    which ASF Furnaces GT Hong Kong shall, immediately thereafter, resell to Customers   pursuant to such Purchase Orders; provided, however, that no Intercompany Sales shall   occur unless and until GT Hong Kong has sold all GT Hong Kong ASF Furnaces, except   in the case where a Customer requests the purchase a Mesa ASF Furnace.  GTAT Corp.   and GT SPE shall not be obligated to sell any ASF Furnaces to GT Hong Kong, and GT   Hong Kong shall not be obligated to purchase any ASF Furnaces from GTAT Corp. or   GT SPE, unless and until such ASF Furnaces are necessary for GT Hong Kong to satisfy     

 

5   an executed Purchase Order with a Customer.  Neither GTAT Corp. nor GT SPE shall be   obligated to acquire goods in order to sell them to GT Hong Kong as Mesa ASF Furnaces   and their obligations to sell to GT Hong Kong shall only extend to Mesa ASF Furnaces   owned by them as of the date hereof.   Nothing herein shall preclude GTAT Corp. or GT SPE, on the one hand, and GT Hong   Kong, on the other hand, from separately agreeing to purchase and sell components for   ASF Furnaces from each other on customary business terms.   2.2 Closing.  The closing of any Intercompany Sale of Mesa ASF Furnaces to GT Hong   Kong shall occur immediately prior to the corresponding resale of such ASF Furnaces by   GT Hong Kong to the applicable Customer.     2.3 Delivery.  The Mesa ASF Furnaces sold pursuant to Intercompany Sales shall be   delivered to GT Hong Kong as directed by GTAT Corp.   2.4 Mesa ASF Price.  The purchase price of each Mesa ASF Furnace to be purchased by GT   Hong Kong pursuant to an Intercompany Sale (such price, the “Mesa ASF Price”) shall   be equal to $253,000.   2.5 Payment of Mesa ASF Price.  With respect to each Intercompany Sale of Mesa ASF   Furnaces, GT Hong Kong agrees to pay GTAT Corp. or GT SPE, as applicable, the Mesa   ASF Price for such Mesa ASF Furnaces in immediately available funds and in   U.S. dollars no later than the date that is 30 days after the date of delivery of such Mesa   ASF Furnaces; provided, however, that if GT Hong Kong does not receive the full sale   price for the sale of an ASF Furnace to a Customer in a single installment, GT Hong   Kong shall pay the Mesa ASF Price to GTAT Corp. ratably as and when GT Hong Kong   receives each installment of the sale price.   2.6 Exclusivity.  GT Hong Kong shall purchase all of its requirements of ASF Furnaces from   GTAT Corp. and/or GT SPE; provided, that GT Hong Kong shall have no obligation to   buy, and GTAT Corp. or GT SPE, as the case may be, shall have no obligation to sell a   Mesa ASF Furnace if, after taking into account all payments contemplated under the   Intercompany Settlement, either GT Hong Kong would incur a cash loss on the ultimate   sale to the Customer, or GTAT Corp. and/or GT SPE, as the case may be, would incur a   cash loss on the sale of a Mesa ASF Furnace to GT Hong Kong.     2.7 NO EXPRESS OR IMPLIED REPRESENTATION OR WARRANTY.  GTAT CORP.   AND GT SPE MAKE NO REPRESENTATION OR WARRANTY, EXPRESSED OR   IMPLIED, UNDER CONTRACT, AT LAW, OR IN EQUITY, WITH RESPECT TO   ANY OF THE MESA ASF FURNACES, INCLUDING REPRESENTATIONS OR   WARRANTIES WITH RESPECT TO MERCHANTABILITY OR FITNESS FOR ANY   PARTICULAR PURPOSE, SUITABILITY, USAGE, WORKMANSHIP, QUALITY,   PHYSICAL CONDITION, OR VALUE, AND ANY AND ALL SUCH   REPRESENTATIONS AND WARRANTIES ARE HEREBY EXPRESSLY   DISCLAIMED.       

 

6   3. SECURITY INTERESTS   3.1 Grant of Security Interest in GTAT Corp. Collateral.     (a) GT Hong Kong hereby grants to GTAT Corp. a security interest in the GTAT   Corp. Collateral to secure all of GT Hong Kong’s present and future obligations   to pay GTAT Corp. for GTAT Corp. ASF Furnaces.     (b) To secure all of GT Hong Kong’s present and future obligations to pay GTAT   Corp. for GTAT Corp. ASF Furnaces, GT Hong Kong also grants a floating   charge in the GTAT Corp. Collateral, pursuant to the Debenture; provided,   however, that nothing in the Debenture shall be deemed or interpreted to modify   the rights set forth in this Intercompany Sales Agreement.   (c) GT Hong Kong hereby authorizes GTAT Corp. to file financing statements   describing the GTAT Corp. Collateral and to take any and all other steps   necessary or advisable to perfect or protect the security interests under this   Section 3.1.   3.2 Grant of Security Interest in GT SPE Collateral.     (a) GT Hong Kong hereby grants to GT SPE a security interest in the GT SPE   Collateral to secure all of GT Hong Kong’s present and future obligations to pay   GT SPE for GTAT SPE ASF Furnaces.     (b) To secure all of GT Hong Kong’s present and future obligations to pay GT SPE   for GT SPE ASF Furnaces, GT Hong Kong also grants a floating charge in the   GTAT Corp. Collateral under Hong Kong law, pursuant to the Debenture;   provided, however, that nothing in the Debenture shall be deemed or interpreted   to modify the rights set forth in this Intercompany Sales Agreement.   (c) GT Hong Kong hereby authorizes GT SPE to file financing statements describing   the GT SPE Collateral and to take any and all other steps necessary or advisable   to perfect or protect the security interests under this Section 3.2.   3.3 GT Hong Kong agrees to execute any further documents, and to take any further actions,   reasonably requested by GTAT Corp. or GT SPE, as applicable, to evidence or perfect   the security interests granted in this Article 3, to maintain the first priority of these   security interests, or to effectuate the rights granted to GTAT Corp. and GT SPE in this   Article 3.   3.4 If a sale of ASF Furnaces by GT Hong Kong to a Customer involves both GTAT Corp.   ASF Furnaces and GT SPE ASF Furnaces (any such sale, a “Combined Sale”), the   security interests granted in respect of the GTAT Corp. Collateral and the GT SPE   Collateral shall be equal in priority and the proceeds of such collateral resulting from   such sale shall be shared by GTAT Corp. and GT SPE ratably based on the Mesa ASF     

 

7   Prices for the GTAT Corp. ASF Furnaces and GT SPE ASF Furnaces composing such   Combined Sale.   3.5 The security interest securing GT Hong Kong’s obligations under this Intercompany   Sales Agreement shall be junior to the security interests securing the Priority Note and   the Contingent Note.    4. INDEMNIFICATION   4.1 GTAT Corp. ASF Furnaces.  With respect to Mesa ASF Furnaces sold by GT Hong   Kong to Customers which Mesa ASF Furnaces were originally GTAT Corp. ASF   Furnaces, GTAT Corp. shall indemnify, defend, and hold GT Hong Kong harmless from   and against any and all claims, damages, liabilities, and losses (including reasonable   attorney’s fees) incurred or suffered by GT Hong Kong related to any claim asserted by a   Customer against GT Hong Kong for personal injury or property damage solely to the   extent caused by the gross negligence or willful misconduct of GTAT Corp. with respect   to such GTAT Corp. ASF Furnaces.  Notwithstanding Section 2.7 hereof, the foregoing   indemnity shall not cover any claims, damages, liabilities, and losses incurred or suffered   by GT Hong Kong related to any claim asserted by a Customer against GT Hong Kong   for breach of warranty with respect to such GTAT Corp. ASF Furnaces, except (i) in the   case of gross negligence or willful misconduct by GTAT Corp. and (ii) to the extent that   any warranty claim against GT Hong Kong arises directly as a result of the fire at GTAT   Corp.’s Mesa facility that occurred on May 26, 2015.   4.2 GT SPE ASF Furnaces.  With respect to Mesa ASF Furnaces sold by GT Hong Kong to   Customers which Mesa ASF Furnaces were originally GT SPE ASF Furnaces, GT SPE   shall indemnify, defend, and hold GT Hong Kong harmless from and against any and all   claims, damages, liabilities, and losses (including reasonable attorney’s fees) incurred or   suffered by GT Hong Kong related to any claim asserted by a Customer against GT Hong   Kong for personal injury or property damage allegedly solely to the extent caused by the   gross negligence or willful misconduct of GT SPE with respect to such GT SPE ASF   Furnaces.  Notwithstanding Section 2.7 hereof, the foregoing indemnity shall not cover   any claims, damages, liabilities, and losses incurred or suffered by GT Hong Kong   related to any claim asserted by a Customer against GT Hong Kong for breach of   warranty with respect to such GT SPE ASF Furnaces, except (i) in the case of gross   negligence or willful misconduct by GT SPE and (ii) to the extent that any warranty   claim against GT Hong Kong arises directly as a result of the fire at GTAT Corp.’s Mesa   facility that occurred on May 26, 2015.   5. EVENTS OF DEFAULT AND REMEDIES   5.1 Events of Default.  The occurrence of any of the following shall, at the option of GTAT   Corp. or GT SPE, as applicable, be an Event of Default:     (a) GT Hong Kong’s failure to comply with any of the provisions of this   Intercompany Sales Agreement;     

 

8   (b) Other than the remittance of payments to GTAT Corp. or GT SPE as   contemplated by this Intercompany Sales Agreement, the transfer or disposition   by GT Hong Kong of any of the GTAT Corp. Collateral or GT SPE Collateral   without the consent of GTAT Corp. or GT SPE, as applicable;   (c) The attachment, execution, garnishment, or levy by a third party on any of the   GTAT Corp. Collateral or GT SPE Collateral;   (d) An Event of Default has occurred under the Priority Note or the Contingent Note,   or GT Hong Kong is in material breach of any of its obligations under (a) the   Intercompany Settlement Agreement, (b) the ASF License Agreement (as   amended by that certain First Amendment to ASF License Agreement, dated as of   July 20, 2015), (c) the Cost Sharing Agreement (as amended by that certain First   Amendment to Cost Sharing Agreement, dated as of July 20, 2015), (d) the   Poly/DSS License Agreement (as amended by that certain Second Amendment to   Poly/DSS License Agreement, dated as of July 20, 2015), (e) the 2010 Services   Agreement (as amended by that certain First Amendment to Management and   Administrative Services Agreement (Effective as of July 5, 2015), dated as of July   20, 2015), or (f) the 2011 Services Agreement (as amended by that certain First   Amendment to Management and Administrative Services Agreement (Effective   as of April 3, 2011), dated as of July 20, 2015), and such breach is not cured   within 10 days after GTAT Corp. provided notice of such breach to GT Hong   Kong;   (e) The Chapter 11 Case of either GTAT Corp. or GT Hong Kong is converted to a   case under chapter 7 of the Bankruptcy Code.    5.2 Remedies Upon Default.  Upon the occurrence and during the continuation of any Event   of Default, GTAT Corp. or GT SPE, as applicable, acting individually or jointly, may:   (a) Declare all or any portion of the obligations owed to GTAT Corp. or GT SPE, as   applicable, hereunder immediately due and payable;   (b) Pursue any and all remedies available at law or in equity to collect, enforce, or   otherwise satisfy any obligations then owing by GT Hong Kong to GTAT Corp.   or GT SPE, as applicable;   (c) Pursue any and all remedies available at law (including those available under the   provisions of the New York Uniform Commercial Code) or in equity to enforce   the security interests granted hereunder by GT Hong Kong to GTAT Corp. or GT   SPE, as applicable;   (d) Pursue any and all of the following remedies separately, successively, or   simultaneously:     

 

9   (i) File suit and obtain judgment and, in conjunction with any action, seek   any ancillary remedies provided by law, including levy of attachment and   garnishment,   (ii) Demand that GT Hong Kong make the GTAT Corp. Collateral or GT SPE   Collateral, as applicable, available to GTAT Corp. or GT SPE, as   applicable, as each may direct (and GT Hong Kong hereby agrees to   comply with such demand), and     (iii) With or without taking possession, sell, lease, or otherwise dispose of the   GTAT Corp. Collateral or GT SPE Collateral, as applicable, at public or   private sale in accordance with the New York Uniform Commercial Code.   5.3 Remedies Cumulative.  The rights and remedies of GTAT Corp. and GT SPE under this   Intercompany Sales Agreement are cumulative.  GTAT Corp. and GT SPE shall have all   other rights and remedies not inconsistent herewith as provided under the New York   Uniform Commercial Code, by law, or in equity.  No exercise by GTAT Corp. or GT   SPE of one right or remedy shall be deemed an election, and no waiver by GTAT Corp.   or GT SPE of any Event of Default shall be deemed a continuing waiver.  No delay by   GTAT Corp. or GT SPE shall constitute a waiver, election, or acquiescence by it.   6. MISCELLANEOUS    6.1 Currency Conversion.  In any case where this Agreement requires GT Hong Kong to   remit to GTAT Corp. or GT SPE an amount equal to the amount that GT Hong Kong has   received from a Customer and where the payment made by such Customer was made in a   currency other than U.S. dollars, this Agreement shall be understood to require GT Hong   Kong to immediately convert the amount of the payment received from its Customer into   U.S. dollars at the then prevailing exchange rates as quoted by reputable currency   exchange brokers in GT Hong Kong’s local market and to remit the amount received by   such conversion (i.e., net of fees or commissions paid to effectuate such conversion), in   immediately available U.S. dollars, to GTAT Corp. or GT SPE, as applicable, and only   the amount so remitted will be credited against the obligations owed by GT Hong Kong   to GTAT Corp. or GT SPE, as applicable.   6.2 Approval Order.  The effectiveness of this Intercompany Settlement Agreement and the   obligations of the Parties are conditioned upon entry of (a) an order, substantially in the   form attached to the Debtors’ motion, dated July 6, 2015 [Docket No. 1998] (the   “Approval Order”), approving, among other things, the Parties’ entry into the   Intercompany Settlement Agreement.     6.3 Attorney’s Fees.  GT Hong Kong agrees to pay or reimburse upon demand GTAT Corp.   and GT SPE for all of its reasonable out-of-pocket costs and expenses (including   reasonable attorney’s fees) incurred in connection with the enforcement of GT Hong   Kong’s obligations under this Intercompany Sales Agreement or the exercise of any   rights or remedies hereunder or under applicable law, including, without limitation, the     

 

10   exercise of rights and remedies with respect to the GTAT Corp. Collateral and the GT   SPE Collateral.   6.4 No Third-Party Beneficiaries.  This Intercompany Sales Agreement is for the sole benefit   of the Parties and their respective successors and assigns and nothing herein, express or   implied, is intended to or shall confer upon any other person any legal or equitable right,   benefit, or remedy of any nature whatsoever.   6.5 Severability.  If any term or provision of this Intercompany Sales Agreement is invalid,   illegal, or unenforceable in any jurisdiction, such invalidity, illegality, or unenforceability   shall not affect any other term or provision of this Intercompany Sales Agreement or   invalidate or render unenforceable such term or provision in any other jurisdiction.  Upon   such determination that any term or other provision is invalid, illegal, or unenforceable,   the Parties shall negotiate in good faith to modify this Intercompany Sales Agreement so   as to effect the original intent of the parties as closely as possible in a mutually acceptable   manner in order that the transactions contemplated hereby be consummated as originally   contemplated to the greatest extent possible.   6.6 Modifications.  No term or provision of this Intercompany Sales Agreement may be   amended or waived except in writing signed by the Parties that are to be affected by such   amendment or waiver.   6.7 Entire Agreement.  This Intercompany Sales Agreement, together with the Intercompany   Settlement Agreement and the exhibits thereto, constitutes the entire agreement of the   Parties with respect to the subject matter contained herein, and supersedes all prior and   contemporaneous understandings and agreements, both written and oral, with respect to   such subject matter.   6.8 Governing Law; Submission to Jurisdiction.  This Intercompany Sales Agreement, and   all of the rights of the Parties arising out of or related to the transactions that are the   subject hereof, shall be governed by and construed in accordance with the laws of the   State of New York, USA.  All actions and proceedings arising out of or relating to this   Intercompany Sales Agreement shall be heard and determined in the Bankruptcy Court,   or if the Bankruptcy Court no longer has jurisdiction or abstains, then in the state courts   of New York sitting in New York City in the Borough of Manhattan or, to the extent   subject matter jurisdiction exists therefor, the United States District Court for the   Southern District of New York, and the Parties irrevocably submit to the exclusive   jurisdiction of such courts in respect of any such actions or proceedings.       <Signature Pages to Follow>     

 

    

 

    

 

      Exhibit J      Intellectual Property        

 

Intellectual Property   Technology Owner Licensee Licensee Rights Economics   GT Crystal   ASFs GTAT Corp GT HK GT HK has exclusive right to sell ASFs   outside US   GTAT Corp has exclusive right to sell   ASFs in US and exclusive right to sell   sapphire materials in all regions   GT HK pays GTAT Corp:   -5% royalty on non-US revenues   -RAB share of CSA   Zephyr GTAT Corp None N/A N/A   SiC GTAT IP Holding LLC   (indirect sub of GT HK)   None N/A N/A   GT Solar   DSS GTAT Corp GT HK GT HK has non-exclusive right to sell   outside of US   GTAT Corp receives 5% of non-US   revenues; rest of non-US revenues   remains with GT HK   Poly GTAT Corp GT HK GT HK has non-exclusive right to sell   outside of US   GTAT HK pays GTAT Corp an   amount equal to (i) non-US profit   minus (ii) 3% of non-US revenues   Merlin GTAT Corp None N/A N/A   HiCz GTAT IP Holding LLC   (indirect sub of GT HK)   None N/A N/A   GT Industrial   SSG GT Sapphire Systems Group   (indirect sub of GTAT Corp)   None N/A N/A   ASMG GTAT Corp (ASMG is a   division of GTAT Corp)   None, since ASMG sells   sapphire materials (GTAT Corp   has the exclusive right to sell   sapphire materials in all regions)   N/A N/A   Hyperion GTAT Corp None N/A N/A

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