AMENDMENT NO. 6 TO CONSIGNMENT AGREEMENT

EXHIBIT 10.1

AMENDMENT NO. 6 TO CONSIGNMENT AGREEMENT

THIS AMENDMENT NO. 6 TO CONSIGNMENT AGREEMENT (this “Amendment”) is made as of September 13, 2011, by and among CANADIAN IMPERIAL BANK OF COMMERCE, a Canadian chartered bank (the “PM Lender”); CIBC WORLD MARKETS INC., an Ontario corporation and subsidiary of the PM Lender (the “Copper Lender” and together with the PM Lender, the “Metal Lenders”); MATERION CORPORATION (f/k/a Brush Engineered Materials Inc.), an Ohio corporation (“BEM”); MATERION ADVANCED MATERIALS TECHNOLOGIES AND SERVICES INC. (f/k/a Xxxxxxxx Advanced Materials Inc.), a New York corporation (“WAM”); MATERION TECHNICAL MATERIALS INC. (f/k/a Technical Materials, Inc.), an Ohio corporation (“TMI”); MATERION BRUSH INC. (f/k/a Brush Xxxxxxx Inc.), an Ohio corporation (“BWI”); MATERION TECHNOLOGIES INC. (f/k/a Zentrix Technologies Inc.), an Arizona corporation (“ZTI”); MATERION XXXXXXXX LLC (f/k/a Xxxxxxxx Acquisition, LLC), a New York limited liability company d/b/a Pure Tech (“Pure Tech”); MATERION PRECISION OPTICS AND THIN FILM COATINGS CORPORATION (f/k/a Thin Film Technology, Inc.), a California corporation (“TFT”); MATERION LARGE AREA COATINGS LLC (f/k/a Techni-Met, LLC), a Delaware limited liability company (“TML”); MATERION ADVANCED MATERIALS TECHNOLOGIES AND SERVICES CORP. (f/k/a Academy Corporation), a New Mexico corporation (“AC”); MATERION ADVANCED MATERIALS TECHNOLOGIES AND SERVICES LLC (f/k/a Academy Gallup, LLC), a New Mexico limited liability company (“AG”); and such other Subsidiaries of BEM who may from time to time become parties by means of their execution and delivery with the Metal Lender of a Joinder Agreement under the Precious Metals Agreement (as defined below). BEM, WAM, TMI, BWI, ZTI, Pure Tech, TFT, TML, AC, AG and such Subsidiaries are herein sometimes referred to collectively as the “Customers” and each individually as a “Customer”.

WITNESSETH:

WHEREAS, the Metal Lenders and the Customers are parties to a certain Consignment Agreement, dated as of October 2, 2009, as amended by that certain (i) Amendment No. 1 to Consignment Agreement, dated as of Xxxxx 00, 0000, (xx) Omnibus Amendment to Metal Documents, dated as of June 10, 2010, (iii) Amendment No. 3 to Consignment Agreement, dated as of September 30, 2010, (iv) Amendment No. 4 to Consignment Agreement, dated as of November 10, 2010, and (v) Amendment No. 5 to Consignment Agreement, dated as of March 7, 2011 (as amended, the “Consignment Agreement”); and

WHEREAS, the parties hereto desire to amend the Consignment Agreement as set forth herein;

NOW, THEREFORE, for value received and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto hereby agree as follows:

1. Defined Terms. Initially capitalized terms used but not defined in this Amendment have the meanings given to such terms in the Consignment Agreement.

2. Amendments.

(a) The definition of “Material Indebtedness” appearing in Section 1 of the Consignment Agreement is hereby amended by deleting the text “$10,000,000” appearing therein and replacing it with “$20,000,000”.

(b) The definition of “Maturity Date” appearing in Section 1 of the Consignment Agreement is hereby amended and restated in its entirety to read as follows:

“Maturity Date” means September 30, 2012. Any obligations of the Customers under this Agreement that are not paid when due on or before the Maturity Date shall remain subject to the provisions of this Agreement until all Obligations are paid and performed in full.

(c) The definition of “Senior Credit Agreement” appearing in Section 1 of the Consignment Agreement is hereby amended and restated in its entirety to read as follows:

“Senior Credit Agreement” means that certain Amended and Restated Credit Agreement, dated as of July 13, 2011, among BEM, Materion Advanced Materials Technologies and Services Netherlands B.V., the other foreign Subsidiary borrowers party thereto from time to time, certain lenders party thereto from time to time, and JPMorgan Chase, N.A., as administrative agent, as may be amended, restated or supplemented, or refinanced or otherwise replaced from time to time. If the Senior Credit Agreement is hereafter amended, refinanced or otherwise replaced (including, without limitation, with an unsecured credit facility), the parties hereto shall negotiate in good faith to make appropriate modifications to this Agreement acceptable to the parties hereto, such that the applicable representations, warranties, agreements, covenants and Events of Default herein conform to their corresponding provisions of such amended, refinanced or replaced credit facility; provided, however, that the Metal Lenders will not be required to make any such modifications to the extent they would cause the Collateral Agent or the Metal Lenders to surrender, release or otherwise compromise their security interest in the Collateral.

(d) The last paragraph of Section 1 of the Consignment Agreement is hereby amended and restated in its entirety to read as follows:

To the extent not defined in this Section l, unless the context otherwise requires, accounting and financial terms used in this Agreement shall have the meanings attributed to them by GAAP (provided that, if BEM notifies the Metal Lenders that BEM requests an amendment to any provision hereof to eliminate the effect of any change occurring after the date hereof in GAAP or in the application thereof on the operation of such provision (or if the Metal Lenders notify BEM that they request an amendment to any provision hereof for such purpose), regardless of whether any such notice is given before or after such change in GAAP or in the application thereof, then such provision shall be interpreted on the basis of GAAP as in effect and applied immediately before such change shall have become effective until such notice shall have been withdrawn or such provision amended in accordance herewith), and all other terms contained in this Agreement shall have the meanings attributed to them by Article 9 of the Uniform Commercial Code in force in the State of New York, as of the date hereof to the extent the same are used or defined therein.

(e) Section 9.12 of the Consignment Agreement is hereby amended by (i) deleting the text “fixed or capital” appearing in clause (e) thereof, and (ii) inserting the following new clauses (j) and (k) immediately after clause (i) thereof:

(j) unsecured Indebtedness of a Customer (including unsecured Subordinated Indebtedness to the extent subordinated to the Obligations on terms reasonably acceptable to the Metal Lenders) in the form of publicly issued notes, to the extent not otherwise permitted under this Section 9.12, and any Indebtedness of a Customer constituting refinancings, renewals or replacements of any such Indebtedness; provided that (i) both immediately prior to and after giving effect (including giving effect on a pro forma basis) thereto, no Default or Event of Default shall exist or would result therefrom, (ii) such Indebtedness matures after, and does not require any scheduled amortization or other scheduled payments of principal prior to, the date that is 181 days after the Maturity Date (it being understood that any provision requiring an offer to purchase such Indebtedness as a result of change of control or asset sale shall not violate the foregoing restriction), (iii) such Indebtedness is not guaranteed by any Subsidiary of BEM that is not a Customer (which guarantees, if such Indebtedness is subordinated, shall be expressly subordinated to the Obligations on terms not less favorable to the Metal Lenders than the subordination terms of such Subordinated Indebtedness), (iv) the covenants applicable to such Indebtedness are not more onerous or more restrictive in any material respect (taken as a whole) than the applicable covenants set forth in this Agreement and (v) both immediately prior to and after giving effect (including giving effect on a pro forma basis) thereto, the Customers would be in compliance with Section 9.17; and

(k) other unsecured Indebtedness in an amount not in excess of $100,000,000.

(f) Section 9.14 of the Consignment Agreement is hereby amended by (i) deleting the text “fixed or capital” appearing in two places in clause (f) thereof, (ii) deleting the text “$10,000,000” appearing in clause (g) thereof and replacing such text with “$15,000,000” and (iii) deleting the text “$10,000,000” appearing in clause (n) thereof and replacing such text with “$20,000,000”.

(g) Section 10.1 of the Consignment Agreement is hereby amended by (i) inserting the following text immediately before the first comma appearing in clause (b) thereof “(including pursuant to Section 2.9)”, and (ii) deleting the text “$5,000,000” appearing in clause (k) thereof and replacing such text with “$20,000,000”.

(h) Schedule 1 to the Consignment Agreement is hereby amended and restated in its entirety to read as set forth in Annex I hereto.

3. Removal of Silver Consignments. The parties hereto agree that, from and after the date of this Amendment: (a) the Consignment of Silver will no longer be permitted under the Consignment Agreement; (b) all references to Silver in the following provisions of the Consignment are hereby deleted: Article 1 and Section 2.1, 2.2, 2.3, 2.9 and 9.22 (collectively, the “Silver Provisions”); and (c) the Silver Provisions are hereby deemed further amended mutatis mutandis to accommodate the deletion of Silver references therefrom.

4. Representations and Warranties. To induce the Metal Lenders to enter into this Amendment, each Customer hereby represents and warrants to the Metal Lenders that: (a) such Customer has full power and authority, and has taken all action necessary, to execute and deliver this Amendment and to fulfill its obligations hereunder and to consummate the transactions contemplated hereby; (b) the making and performance by such Customer of this Amendment do not and will not violate any law or regulation of the jurisdiction of its organization or any other law or regulation applicable to it; (c) this Amendment has been duly executed and delivered by such Customer and constitutes the legal, valid and binding obligation of such Customer, enforceable against it in accordance with its terms, except as enforceability may be limited by bankruptcy, insolvency or similar laws affecting the enforcement of creditors’ rights generally and except as the same may be subject to general principles of equity; and (d) on and as of the date hereof, after giving effect to this Amendment, no Default or Event of Default exists under the Consignment Agreement.

5. Governing Law. This Amendment shall be governed by and construed in accordance with the laws of the State of New York applicable to contracts made and performed in such State.

6. Integration of Amendment into Consignment Agreement. The Consignment Agreement, as amended hereby, together with the other Metal Documents, is intended by the parties as the final, complete and exclusive statement of the transactions evidenced by the Consignment Agreement. All prior or contemporaneous promises, agreements and understandings, whether oral or written, are deemed to be superseded by the Consignment Agreement, as amended hereby, and no party is relying on any promise, agreement or understanding not set forth in the Consignment Agreement, as amended hereby. The Consignment Agreement, as amended hereby, may not be amended or modified except by a written instrument describing such amendment or modification executed by the Customers and the Metal Lenders. The parties hereto agree that this Amendment shall in no manner affect or impair the liens and security interests evidenced or granted by the Consignment Agreement or in connection therewith. Except as amended hereby, the Consignment Agreement shall remain in full force and effect and is in all respects hereby ratified and affirmed.

7. Expenses. The Customers covenant and agree jointly and severally to pay all reasonable out-of-pocket expenses, costs and charges incurred by the Metal Lenders (including reasonable fees and disbursement of counsel) in connection with the review and implementation of this Amendment.

8. Signatures. This Amendment may be executed by the parties hereto in several counterparts hereof and by the different parties hereto on separate counterparts hereof, each of which shall be an original and all of which shall together constitute one and the same agreement. Delivery of an executed signature page of this Amendment by electronic transmission shall be effective as an in hand delivery of an original executed counterpart hereof.

[this space left blank intentionally – signature pages follow]

IN WITNESS WHEREOF, the undersigned parties have caused this Amendment to be executed by their duly authorized officers as of the date first written above.

CUSTOMERS:
MATERION CORPORATION By: /s/ Xxxxxxx X. Xxxxxxxx Xxxxxxx X. Xxxxxxxx Vice President, Treasurer and Secretary		MATERION ADVANCED MATERIALS TECHNOLOGIES AND SERVICES INC. By: /s/ Xxxxxxx X. Xxxxxxxx — Xxxxxxx X. Xxxxxxxx Vice President, Treasurer and Secretary
MATERION TECHNICAL MATERIALS INC. By: /s/ Xxxxxxx X. Xxxxxxxx		MATERION BRUSH INC. By: /s/ Xxxxxxx X. Xxxxxxxx
Xxxxxxx X. Xxxxxxxx Vice President, Treasurer and Secretary		Xxxxxxx X. Xxxxxxxx Vice President, Treasurer and Secretary
MATERION TECHNOLOGIES INC. By: /s/ Xxxxxxx X. Xxxxxxxx		MATERION XXXXXXXX LLC By: /s/ Xxxxxxx X. Xxxxxxxx
Xxxxxxx X. Xxxxxxxx Chief Financial Officer and Secretary		Xxxxxxx X. Xxxxxxxx Treasurer
MATERION PRECISION OPTICS AND THIN FILM COATINGS CORPORATION By: /s/ Xxxx X. Xxxxxxxxx Xxxx X. Xxxxxxxxx Secretary		MATERION LARGE AREA COATINGS LLC By: /s/ Xxxx X. Xxxxxxxxx — Xxxx X. Xxxxxxxxx Asst. Secretary and Asst. Treasurer
MATERION ADVANCED MATERIALS TECHNOLOGIES AND SERVICES CORP. By: /s/ Xxxxxxx X. Xxxxx		MATERION ADVANCED MATERIALS TECHNOLOGIES AND SERVICES LLC
Xxxxxxx X. Xxxxx		By: /s/ Xxxxxxx X. Xxxxx
President		Xxxxxxx X. Xxxxx Manager
METAL LENDERS:
CANADIAN IMPERIAL BANK OF COMMERCE By: /s/ Xxx Xxxx		CIBC WORLD MARKETS INC. By: /s/ Xxx Xxxx
Name: Xxx Xxxx		Name: Xxx Xxxx
Title: Executive Director		Title: Executive Director

ANNEX I
AMENDED AND RESTATED SCHEDULE 1 (APPROVED LOCATIONS)

SCHEDULE 1
APPROVED LOCATIONS

Approved Domestic Locations
Materion Advanced Materials Technologies and Services Inc. (f/k/a Xxxxxxxx Advanced Materials Inc.) 0000 Xxxx Xxxxxx Xxxxxxx, Xxx Xxxx 00000		Materion Technical Materials Inc. (f/k/a Technical Materials, Inc.) 0 Xxxxxxxxxx Xxxx Xxxxxxx, Xxxxx Xxxxxx 00000
Materion Advanced Materials Technologies and Services Inc. (f/k/a Xxxxxxxx Advanced Materials Inc.) 0000 Xxxxxxxx Xxxx Xxxxxxxxxx, Xxx Xxxx 00000		Materion Large Area Coatings LLC (f/k/a Techni-Met, LLC) 000 Xxxxxxxxx Xxxx Xxxxxxx, Xxxxxxxxxxx 00000
Materion Xxxxxxxx LLC (f/k/a Xxxxxxxx Acquisition, LLC) 00 Xx. Xxx Xxxx Xxxxx Xxxxxxxx, Xxx Xxxx 00000		Materion Large Area Coatings LLC (f/k/a Techni-Met, LLC) 00 Xxxx Xxxxxxxx Xx. Xxxxxxxxxx, Xxxxxxxxxxx 00000
Materion Precision Optics and Thin Film Coatings LLC (f/k/a Thin Film Technology, Inc.) 000 Xxxxxxxxxx Xxx Xxxxxxxx, XX 00000		Cerac, inc. (a Materion Advanced Materials Technologies and Services site) 000-000 X. 00xx Xx. and 0000 X. Xx. Xxxx Xx. Xxxxxxxxx, Xxxxxxxxx 00000
Materion Technologies Inc. (f/k/a Zentrix Technologies Inc.) Newburyport Industrial Park 00 Xxxx Xxxx Xxxxxxxxxxx, Xxxxxxxxxxxxx 00000		Materion Advanced Materials Technologies and Services Inc. (f/k/a Xxxxxxxx Advanced Materials Inc.) 0000 Xxxxxx Xx, Xxxxx X Xxxxx Xxxxx, Xxxxxxxxxx 00000
Materion Brush Inc. (f/ka/ Brush Xxxxxxx Inc.) 00000 X. Xxxxxxx Xxxxx Xxxxx Xx. Xxxxxx, Xxxx 00000-0000		Materion Brush Inc. (f/ka/ Brush Xxxxxxx Inc.) 00000 Xxxxxxx Xxxx Xxxxx Xxxxxx, Xxxxxxxx 00000
Materion Advanced Materials Technologies and Services Corp. (f/k/a Academy Corporation) 0000 Xxxxxxxxxx Xxxxxx XX Xxxxxxxxxxx, Xxx Xxxxxx 00000		Materion Advanced Materials Technologies and Services Corp. (f/k/a Academy Corporation) 0000 Xxxxxx Xxxx Xxxxx XX Xxxxxxxxxxx, Xxx Xxxxxx 00000
Materion Advanced Materials Technologies and Services Corp. (f/k/a Academy Corporation) 0000 Xxxxxx Xxxx Xxxxx XX Xxxxxxxxxxx, Xxx Xxxxxx 00000		Materion Advanced Materials Technologies and Services Corp. (f/k/a Academy Corporation) 0000 Xxxxxx Xxxx Xxxxx XX Xxxxxxxxxxx, Xxx Xxxxxx 00000
Materion Advanced Materials Technologies and Services LLC (f/k/a Academy Gallup, LLC) 0000 Xxxxx Xxxxxxx 000 Xxxxxx, Xxx Xxxxxx 00000

Approved Foreign Locations
Materion Advanced Materials		Materion Czech S.R.O. (f/k/a OMC
Technologies and Services Far East		Scientific, Czech S.R.O)
Pte. Ltd. (f/k/a Xxxxxxxx Advanced Materials Far East PTE Ltd.) 000 Xxxx Xxxxx Xxxx #00-00		Xxxxxxxxxx xx.
Xxxxxxxxx Warehouse		440 01 Louny
Xxxxxxxxx 000000		Xxxxx Xxxxxxxx
Materion Advanced Materials		Seagate
Technologies and Services Far East Pte. Ltd. (f/k/a Xxxxxxxx Advanced Materials Far East PTE Ltd.) 00 Xxxxxxxx Xx.		0 Xxxx Xxxxx
Xxxx Xxxxxxxxxx Xxxx.		Xxxxxxxxxx Xxxxxxxxxx Xxxxxx
Xxxxxxxxx Warehouse		Londonderry, Northern Ireland
Singapore 4099957		XX00 XXX Xxxxxx Xxxxxxx
Materion Advanced Materials		Materion Advanced Materials
Technologies and Services Taiwan		Technologies and Services Suzhou Ltd.
Co. Ltd. (f/k/a Xxxxxxxx Advanced		(f/k/a Xxxxxxxx Advanced Materials
Materials Technology Taiwan Co.,		(Suzhou) Ltd.)
Ltd.) Xx. 00 Xxxxxxxxx 0xx Xx.		Xx. 00, Xx Xxxx Xxxx
Xxxxx Xxxxxx, Xxxxxxx Xxxxxx		Suzhou Industrial Park
Taiwan, ROC		China 215021
Materion Ireland Holdings Limited		Materion Advanced Materials
(f/k/a OMC Scientific Holdings		Technologies and Services Inc. (f/k/a
Limited)		Xxxxxxxx Advanced Materials Inc.) –
Xxxxxxxxxx Xxxx		Xxxxxxxxxxx
Xxxxxxxx, Xxxxxxx		Xxxx. 0000 Xxxxxxxxx Xxxxxxx
		Xxxx Pt.
		Subic Bay Freeport Zone
		Philippines 2222
Approved Refiners / Fabricators
Coining of America		Xxxxxxx Matthey Limited
000 Xxxxxxx Xxxxxx		000 Xxxxxxx Xxxx
Xxxxxx Xxxxx, Xxx Xxxxxx 00000		Xxxxxxxx, Xxxxxxx, Xxxxxx X0X 0X0
Xxxxxxx Xxxx Corp.		Xxxxxxx Xxxxxxx
000 Xxxxx Xxxxxxxx Xxxxxx		Xxxxxxx Xxxx
Xxxxx Xxxxxx, Xxx Xxxx 00000		Xxxxxxx, Xxxxxxxxxxxxx, Xxxxxxx XX0 0XX
Xxxxxxx Mfg.		Xxxxxxx Matthey
0 Xxxx Xxxxxx		0000 Xxxxx Xxxxx
Xxxxxxxxxx Xxxx, Xxx Xxxxxx 00000		Xxxx Xxxxxxxx, Xxx Xxxxxx 00000
NuTec Metal Joining Products		Rohm & Xxxx Electric Materials LLC
00000 Xxxxx Xxxxx		000 Xxxxxxx Xxxxxx
Xxxxxxxxx, Xxxx 00000		Xxxxxxxx, Xxx Xxxx 00000
BASF Catalysts, LLC		Xxxxx Metal Corp.
000 Xxxxxxxxx Xxxxx		000 Xxxxxxx Xxxxx
Xxxxxx, Xxxxx Xxxxxxxx 00000		East Hampton, New York 11937
Heraeus Metal Processing, Inc.		Seagate Technology
00000 Xxxxxxx Xxxx.		0000 Xxxxxxxx Xxx.
Xxxxx Xx Xxxxxxx, Xxxxxxxxxx 00000		Xxxxxxxxxxx, XX 00000
Xxxxxx, Inc.		Xxxxxx, Inc.
0000 Xxxx Xxxxx Xxxxx Xxxxxx		0000 Xxxxx Xxxxxxx Xxxx
Xxxxxxxxxxxx, Xxxxxxx 00000		Xxxxxxxxxx, Xxxxxxx 00000

Approved Subconsignees and Approved Subconsignee Locations

Honeywell

International Rectifier

000 Xxxxxxx Xxxx

a Hexfet America Facility

Xxxxxxxxxx, Xxxxx 00000

00000 Xxxxxxxx Xxxx Xxxxx Xxxxxxxx, Xxxxxxxxxx 00000

Triquint Semiconductor

International Rectifier

000 X. Xxxxxx Xxxx

Xxxxxxx Xxxx

Xxxxxxxxxx, Xxxxx 00000-0000

Xxxxxxx Xxxxx Xxxxx, Xxxxxxx XX00 0XX

Triquint Semiconductor

Hewlett Packard

0000 X.X. Xxxxxxxxx Xxxx.

0000 XX Xxxxxx Xxxx.

Xxxxxxxxx, Xxxxxx 00000

Chemical Storage Building Xxxxxxxxx, XX 00000

Triquint Semiconductor

PPG Industries

0000 Xxxxxxx 000, X

000 Xxxx Xxxxx, Xxxxx #0

Xxxxxx, Xxxxxxx 00000

Xxxxxxxx, Xxxxxxxxxxxx 00000

PPG Industries

PPG Industries

0000 Xxxxxxx Xxxxxxx

0000 Xxxxxxxx Xxxxxxxxxx Xxxxx XX, Xxxxx #00

Xxxxxxx Xxxxx, Xxxxx 00000

Xxxxx, Xxxxxx 00000