Aangezien ik weet dat lang niet iedereen het yahoo MB volgt, dit wil ik jullie toch niet onthouden, ik zal de verschillende posts onder elkaar zetten.
GTAT filed amended Apple agreement with less redactions
See EDGAR filings for today for GTAT. They refiled the Apple agreement from November 2013 with new information in it. The original agreement filed for public viewing in November had a lot redacted. The new filings show some of what was redacted, but not all.
Some interesting tidbits...
In the original from November:
GTAT will timely purchase, install, qualify and operate [***] (the “Furnaces”) by the applicable dates specified in Attachment 1 hereto.
And in the updated:
GTAT will timely purchase, install, qualify and operate [***] than [***] ASF[***] sapphire growing furnaces in the [***] and will retrofit, qualify and operate [***] furnaces in [***] to make such furnaces equivalent in function to the ASF[***] sapphire growing furnace (the “Furnaces”) by the applicable dates specified in Attachment 1 hereto.
While we can't tell for sure, what I think is being discussed here is that GTAT is required to install new, larger ASF furnaces, the ones that TG alluded to but didn't disclose the size. However, when they were first setting up the plant those newer larger furnaces weren't ready so they installed smaller ones which are required to be retrofitted to become the larger size. Hence Apple is requiring GTAT to run solely with the absolute largest size furnaces they have. Good news, better scalability, more product.
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More about Salem:
The Prepayment proceeds shall be used exclusively to (i) fund the purchase of [***] sapphire growing furnaces (the “Mesa Furnaces”) and [***] (ii) retrofit and qualify the committed [***] sapphire growing furnaces currently located in GTAT’s Salem, Massachusetts facility (the “Salem Furnaces” and, together with the Mesa Furnaces, the “Furnaces”), provided that the Prepayment used to retrofit and qualify the Salem Furnaces shall not to exceed [***]
...
For the avoidance of doubt, the Prepayment shall not be used to fund the purchase or installation of the Salem Furnaces.
So Apple payed to have Salem furnaces retrofitted some how so that Salem could produce product for Apple.
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And this:
If GTAT or any applicable GTAT Related Entity fails to comply with any or all of the provisions of Section 12, then GTAT will pay to Apple, as liquidated damages, an amount equal to $1 billion ($1,000,000,000).
Now we have an actual dollar figure on the liability that GTAT has if they violate the agreement.
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Here is another goodie:
GTAT will provide [***] and [***] from GTAT’s Salem facility at [***] to Apple through [***].
So now we know that prodcuts/materials made in the Salem factory are also being sold to Apple
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I also found this interesting:
A “sapphire [***]” means a Good that complies with Apple’s [***] Specification. A [***] means a [***]. A [***] means a [***]. A [***] means [***].
Combined with this text:
For purposes of determining GTAT’s compliance with the Supply Commitment, only the linear measure of the portions of a [***] from which [***] comply with Apple’s Specifications will be counted. For example, if out of a [***], only [***] can produce acceptable [***], then only [***] will count towards GTAT’s monthly Supply Commitment for that type of [***]. Unless Apple approves otherwise, GTAT may only supply and deliver [***] having a [***].
This was from a section of the agreement detailing how Apple will count/quantify the goods provided by GTAT. E.g. GTAT provides boules but what Apple needs are screens and iWatch faces so what Apple is counting is how many screens/faces can be cut from the sapphire boules provided by GTAT. Apple is not buying sapphire by weight, they are buying it by the screen/face/slice.
I think we are seeing Apple describe the 3 types/shapes of sapphire cover glass it needs for 3 different products, e.g. a medium sized iPhone cover, a large sized iPhone cover and an iWatch cover.
E.g.:
"A medium iPhone cover means a 4.7" sapphire cover screen. A large iPhone cover means a 5.5" sapphire cover screen. A iWatch cover means a 2" sapphire cover screen.
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Uiteraard is dit gissen, maar ik vond het de moeite waard om te delen.
Bob