PHOTRONICS INC
EXHIBIT 10.40 - AMENDMENT NO. 1 DATED AS OF MAY 15, 2009
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<TYPE>EX-10
<SEQUENCE>5
<FILENAME>plab_exh10-40.htm
<DESCRIPTION>EXHIBIT 10.40 - AMENDMENT NO. 1 DATED AS OF MAY 15, 2009
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   <TITLE>Exhibit 10.40</TITLE>
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<P align=center><FONT face=serif size=2>AMENDMENT NO. 1 </FONT></P>
<P align=center><FONT face=serif size=2>Dated as of May 15, 2009 </FONT></P>
<P align=center><FONT face=serif size=2>to </FONT></P>
<P align=center><FONT face=serif size=2>SECOND AMENDED AND RESTATED GUARANTEE
AGREEMENT </FONT></P>
<P align=center><FONT face=serif size=2>Dated as of March 23, 2009 </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>THIS AMENDMENT NO. 1 (the </FONT><B><FONT face=serif size=2>Amendment)</FONT></B><FONT face=serif size=2> is made as of May 15, 2009
by and between Photronics, Inc. (the </FONT><B><FONT face=serif size=2>Guarantor</FONT></B><FONT face=serif size=2>) and JPMorgan Chase Bank
(China) Company Limited, Shanghai Branch, as Administrative Agent (for and on
behalf of itself and the Majority Lenders under the Restated Credit Agreement)
(the </FONT><B><FONT face=serif size=2>Administrative Agent</FONT></B><FONT face=serif size=2>), under that certain Second Amended and Restated Guarantee
Agreement dated as of March 23, 2009 by and between the Guarantor and the
Administrative Agent (for and on behalf of itself and the other Finance Parties
from time to time party to the Restated Credit Agreement) (the </FONT><B><FONT face=serif size=2>Guarantee Agreement</FONT></B><FONT face=serif size=2>).
Capitalized terms used herein and not otherwise defined herein shall have the
respective meanings given to them in the Guarantee Agreement. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>WHEREAS, the Guarantor has requested that the Administrative
Agent and the Majority Lenders agree to certain amendments to the Guarantee
Agreement; </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>WHEREAS, the Guarantor, the Administrative Agent and the
Majority Lenders have agreed to such amendments on the terms and conditions set
forth herein; </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>NOW, THEREFORE, in consideration of the premises set forth
above, the terms and conditions contained herein, and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
Guarantor and the Administrative Agent (for and on behalf of itself and the
Majority Lenders under the Restated Credit Agreement) have agreed to enter into
this Amendment. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2><FONT size=2>1</FONT>.</FONT><FONT face=sans-serif size=2>
</FONT><U><FONT face=serif size=2>Amendments to Guarantee
Agreement</FONT></U><FONT face=serif size=2>. Effective as of the date of
satisfaction of the conditions precedent set forth in </FONT><U><FONT face=serif size=2>Section 2</FONT></U><FONT face=serif size=2> below, the Guarantee
Agreement is hereby amended as follows: </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(a)</FONT><FONT face=sans-serif size=2> </FONT><FONT face=serif size=2>Section 7.11(a) of the Guarantee Agreement is amended to
delete the table appearing therein and to replace such table with the following
table: </FONT></P>
<DIV align=center>
<TABLE cellSpacing=0 cellPadding=0 width="75%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="51%"><FONT face=serif size=2>Fiscal Quarter Ending On or
      About</FONT>&nbsp; </TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="48%"><FONT face=serif size=2>Maximum Senior Leverage
      Ratio</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=center width="51%" bgColor=#c0c0c0><FONT face=serif size=2>February 1, 2009</FONT>&nbsp; </TD>
    <TD noWrap align=center width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="48%" bgColor=#c0c0c0><FONT face=serif size=2>2.25 </FONT><FONT face=serif size=2>to </FONT><FONT face=serif size=2>1.00</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=center width="51%"><FONT face=serif size=2>May 3,
      2009</FONT>&nbsp; </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="48%"><FONT face=serif size=2>2.75
      </FONT><FONT face=serif size=2>to </FONT><FONT face=serif size=2>1.00</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=center width="51%" bgColor=#c0c0c0><FONT face=serif size=2>August 2, 2009</FONT>&nbsp; </TD>
    <TD noWrap align=center width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="48%" bgColor=#c0c0c0><FONT face=serif size=2>3.00 </FONT><FONT face=serif size=2>to </FONT><FONT face=serif size=2>1.00</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=center width="51%"><FONT face=serif size=2>November 1,
      2009</FONT>&nbsp; </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="48%"><FONT face=serif size=2>3.00
      </FONT><FONT face=serif size=2>to </FONT><FONT face=serif size=2>1.00</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=center width="51%" bgColor=#c0c0c0><FONT face=serif size=2>January 31, 2010</FONT>&nbsp; </TD>
    <TD noWrap align=center width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="48%" bgColor=#c0c0c0><FONT face=serif size=2>2.50 </FONT><FONT face=serif size=2>to </FONT><FONT face=serif size=2>1.00</FONT>&nbsp; </TD></TR></TABLE></DIV><BR>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=left><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>(b)</FONT><FONT face=sans-serif size=2> </FONT><FONT face=serif size=2>Section 7.11(b) of the
Guarantee Agreement is amended to delete the table appearing therein and to
replace such table with the following table:</FONT></P>
<DIV align=center>
<TABLE cellSpacing=0 cellPadding=0 width="75%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="51%"><FONT face=serif size=2>Fiscal Quarter Ending On or
      About</FONT>&nbsp; </TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="48%"><FONT face=serif size=2>Maximum Total Leverage
      Ratio</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=center width="51%" bgColor=#c0c0c0><FONT face=serif size=2>February 1, 2009</FONT>&nbsp; </TD>
    <TD noWrap align=center width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="48%" bgColor=#c0c0c0><FONT face=serif size=2>2.50 </FONT><FONT face=serif size=2>to </FONT><FONT face=serif size=2>1.00</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=center width="51%"><FONT face=serif size=2>May 3,
      2009</FONT>&nbsp; </TD>
    <TD noWrap align=center width="1%">&nbsp;</TD>
    <TD noWrap align=center width="48%"><FONT face=serif size=2>3.00
      </FONT><FONT face=serif size=2>to </FONT><FONT face=serif size=2>1.00</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=center width="51%" bgColor=#c0c0c0><FONT face=serif size=2>August 2, 2009</FONT>&nbsp; </TD>
    <TD noWrap align=center width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="48%" bgColor=#c0c0c0><FONT face=serif size=2>3.25 </FONT><FONT face=serif size=2>to </FONT><FONT face=serif size=2>1.00</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=center width="51%"><FONT face=serif size=2>November 1,
      2009</FONT>&nbsp; </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="48%"><FONT face=serif size=2>3.25
      </FONT><FONT face=serif size=2>to </FONT><FONT face=serif size=2>1.00</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=center width="51%" bgColor=#c0c0c0><FONT face=serif size=2>January 31, 2010</FONT>&nbsp; </TD>
    <TD noWrap align=center width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="48%" bgColor=#c0c0c0><FONT face=serif size=2>2.75 </FONT><FONT face=serif size=2>to </FONT><FONT face=serif size=2>1.00</FONT>&nbsp; </TD></TR></TABLE></DIV><BR>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(c)</FONT><FONT face=sans-serif> </FONT><FONT face=serif size=2>Section 7.11(c) of the Guarantee Agreement is amended and restated in its
entirety to read as follows: </FONT></P>
<P style="PADDING-LEFT: 45pt" align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(c) </FONT><U><FONT face=serif size=2>Minimum Unrestricted
Cash Balances</FONT></U><FONT face=serif size=2>. The Guarantor will not permit
the aggregate amount of unrestricted cash balances and Permitted Investments
maintained by the Guarantor and its Subsidiaries to be less than $50,000,000
(provided that, during the Guarantor&#146;s fiscal quarter ending on or about January
31, 2010, such amount shall not be less than $45,000,000). For the avoidance of
doubt, any cash deposited with the Collateral Agent pursuant to the terms of the
Collateral Documents shall be deemed to be unrestricted cash. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(d)</FONT><FONT face=sans-serif> </FONT><FONT face=serif size=2>Section 7.11(d) of the Guarantee Agreement is amended and restated in its
entirety to read as follows: </FONT></P>
<P style="PADDING-LEFT: 45pt" align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(d) </FONT><U><FONT face=serif size=2>Minimum Fixed Charge
Coverage Ratio</FONT></U><FONT face=serif size=2>. The Guarantor will not permit
the ratio (the </FONT><B><FONT face=serif size=2>Fixed Charge Coverage
Ratio</FONT></B><FONT face=serif size=2>), determined as of the end of each of
its fiscal quarters set forth below, of (i) Consolidated EBITDA to (ii)
Consolidated Fixed Charges, in each case for the period of four (4) consecutive
fiscal quarters ending with the end of such fiscal quarter, all calculated for
the Guarantor and its Subsidiaries on a consolidated basis, to be less than the
ratio set forth opposite such fiscal quarter: </FONT></P>
<DIV align=center>
<TABLE cellSpacing=0 cellPadding=0 width="75%" border=0>

  <TR>
    <TD noWrap align=center width="50%"></TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="49%"><FONT size=2>Minimum Fixed
      Charge</FONT></TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="50%">&nbsp; <FONT size=2>Fiscal Quarter Ending On or
      About</FONT>&nbsp;<U> </U></TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="49%"><FONT face=serif size=2>&nbsp;Coverage Ratio</FONT>&nbsp;
  </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=center width="50%" bgColor=#c0c0c0><FONT face=serif size=2>May 3, 2009</FONT>&nbsp; </TD>
    <TD noWrap align=center width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=center width="49%" bgColor=#c0c0c0><FONT face=serif size=2>2.00 </FONT><FONT face=serif size=2>to </FONT><FONT face=serif size=2>1.00</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=center width="50%"><FONT face=serif size=2>August 2,
      2009</FONT>&nbsp; </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="49%"><FONT face=serif size=2>1.85
      </FONT><FONT face=serif size=2>to </FONT><FONT face=serif size=2>1.00</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=center width="50%" bgColor=#c0c0c0><FONT face=serif size=2>November 1, 2009</FONT>&nbsp; </TD>
    <TD noWrap align=center width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="49%" bgColor=#c0c0c0><FONT face=serif size=2>1.75 </FONT><FONT face=serif size=2>to </FONT><FONT face=serif size=2>1.00</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=center width="50%"><FONT face=serif size=2>January 31,
      2010</FONT>&nbsp; </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="49%"><FONT face=serif size=2>1.50
      </FONT><FONT face=serif size=2>to </FONT><FONT face=serif size=2>1.00</FONT>&nbsp; </TD></TR></TABLE></DIV><BR>
<P align=center><FONT face=serif size=2>2 </FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(e)</FONT><FONT face=sans-serif> </FONT><FONT face=serif size=2>Section 7.11(e) of the Guarantee Agreement is amended and restated in its
entirety to read as follows: </FONT></P>
<P style="PADDING-LEFT: 45pt" align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(e) </FONT><U><FONT face=serif size=2>Minimum
EBITDA</FONT></U><FONT face=serif size=2>. The Guarantor will not permit
Consolidated EBITDA for the period of six consecutive fiscal months ending at
the end of each fiscal quarter on or about the dates set forth below to be less
than the corresponding amount set forth opposite such fiscal quarter:
</FONT></P>
<DIV align=center>
<TABLE cellSpacing=0 cellPadding=0 width="75%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=center width="51%"></TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD noWrap align=center width="47%"><FONT face=serif size=2>Minimum
      Consolidated EBITDA</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="51%">&nbsp; <FONT size=2>Fiscal Quarter Ending On or
      About</FONT>&nbsp; </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="47%"><FONT face=serif size=2>(Trailing 6 Months)</FONT>&nbsp;
</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=center width="51%" bgColor=#c0c0c0><FONT face=serif size=2>February 1, 2009</FONT>&nbsp; </TD>
    <TD noWrap align=center width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="47%" bgColor=#c0c0c0><FONT face=serif size=2>$40,000,000</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=center width="51%"><FONT face=serif size=2>May 3,
      2009</FONT>&nbsp; </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="47%"><FONT face=serif size=2>$27,500,000</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=center width="51%" bgColor=#c0c0c0><FONT face=serif size=2>August 2, 2009</FONT>&nbsp; </TD>
    <TD noWrap align=center width="1%" bgColor=#c0c0c0>&nbsp;</TD>
    <TD noWrap align=center width="47%" bgColor=#c0c0c0><FONT face=serif size=2>$32,000,000</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=center width="51%"><FONT face=serif size=2>November 1,
      2009</FONT>&nbsp; </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="47%"><FONT face=serif size=2>$40,000,000</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=center width="51%" bgColor=#c0c0c0><FONT face=serif size=2>January 31, 2010</FONT>&nbsp; </TD>
    <TD noWrap align=center width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="47%" bgColor=#c0c0c0><FONT face=serif size=2>$42,500,000</FONT>&nbsp; </TD></TR></TABLE></DIV><BR>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(f)</FONT><FONT face=sans-serif> </FONT><FONT face=serif size=2>Section 7.11(f) of the Guarantee Agreement is amended and restated in its
entirety to read as follows: </FONT></P>
<P style="PADDING-LEFT: 45pt" align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(f) </FONT><U><FONT face=serif size=2>Maximum Capital
Expenditures</FONT></U><FONT face=serif size=2>. The Guarantor will not, nor
will it permit any Subsidiary to, make Capital Expenditures in an amount (in the
aggregate for the Guarantor and its Subsidiaries) during the period of 4
consecutive fiscal quarters ending as of the end of each of its fiscal quarters
set forth below in excess of the corresponding amount set forth opposite such
fiscal quarter: </FONT></P>
<DIV align=center>
<TABLE cellSpacing=0 cellPadding=0 width="75%" border=0>

  <TR vAlign=bottom>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="51%"><FONT face=serif size=2>Fiscal Quarter Ending On or
      About</FONT>&nbsp; </TD>
    <TD noWrap align=center width="1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=center width="48%"><FONT face=serif size=2>Maximum Capital
      Expenditures</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=center width="51%" bgColor=#c0c0c0><FONT face=serif size=2>February 1, 2009</FONT>&nbsp; </TD>
    <TD noWrap align=center width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="48%" bgColor=#c0c0c0><FONT face=serif size=2>$65,000,000</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=center width="51%"><FONT face=serif size=2>May 3,
      2009</FONT>&nbsp; </TD>
    <TD noWrap align=center width="1%">&nbsp;</TD>
    <TD noWrap align=center width="48%"><FONT face=serif size=2>$57,500,000</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=center width="51%" bgColor=#c0c0c0><FONT face=serif size=2>August 2, 2009</FONT>&nbsp; </TD>
    <TD noWrap align=center width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="48%" bgColor=#c0c0c0><FONT face=serif size=2>$55,000,000</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=center width="51%"><FONT face=serif size=2>November 1,
      2009</FONT>&nbsp; </TD>
    <TD noWrap align=center width="1%"></TD>
    <TD noWrap align=center width="48%"><FONT face=serif size=2>$52,500,000</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=center width="51%" bgColor=#c0c0c0><FONT face=serif size=2>January 31, 2010</FONT>&nbsp; </TD>
    <TD noWrap align=center width="1%" bgColor=#c0c0c0></TD>
    <TD noWrap align=center width="48%" bgColor=#c0c0c0><FONT face=serif size=2>$52,500,000</FONT>&nbsp; </TD></TR></TABLE></DIV><BR>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>2.</FONT><FONT face=sans-serif> </FONT><U><FONT face=serif size=2>Conditions of Effectiveness</FONT></U><FONT face=serif size=2>. The
effectiveness of this Amendment is subject to the conditions precedent that (a)
Amendment No. 5 to the U.S. Facility Agreement shall have become effective in
accordance with the terms set forth therein, (b) the Administrative Agent shall
have received counterparts of this Amendment duly executed by the Guarantor and
the Administrative Agent (for and on behalf of itself and the Majority Lenders
under the Restated Credit Agreement), (c) the Guarantor shall have paid all of
the fees of the Administrative Agent and its affiliates (including, to the
extent invoiced, reasonable attorneys&#146; fees and expenses of the Administrative
Agent) in connection with this Amendment and the other Finance Documents.
</FONT></P>
<P align=left><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>3.</FONT><FONT face=sans-serif> </FONT><U><FONT face=serif size=2>Representations and
Warranties of the Guarantor and </FONT></U><U><FONT face=serif size=2>Acknowledgements and Confirmations</FONT></U><FONT face=serif size=2>.
The Guarantor hereby represents and warrants as follows: </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(a)</FONT><FONT face=sans-serif> </FONT><FONT face=serif size=2>This Amendment and the Guarantee Agreement, as amended hereby, constitute
legal, valid and binding obligations of the Guarantor and are enforceable
against the Guarantor in accordance with their terms, subject to applicable
bankruptcy, insolvency, reorganization, moratorium or other laws affecting
creditors&#146; rights generally and subject to general principles of equity,
regardless of whether considered in a proceeding in equity or at law.
</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(b)</FONT><FONT face=sans-serif> </FONT><FONT face=serif size=2>As of the date hereof and giving effect to the terms of this Amendment,
(i) no Default shall have occurred and be continuing and (ii) the
representations and warranties of the Guarantor set forth in the Guarantee
Agreement, as amended hereby, are true and correct as of the date hereof, except
for representations and warranties which expressly refer to an earlier date, in
which case such representations and warranties were true and correct as of each
such earlier date.</FONT></P>
<P align=center><FONT face=serif size=2>3 </FONT></P>
<HR align=center width="100%" noShade SIZE=2>
<PAGE>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(c)</FONT><FONT face=sans-serif> </FONT><FONT face=serif size=2>The Guarantor further represents, warrants and confirms that no
authorization, approval or consent of, and no filing or registration with, any
governmental or regulatory authority or agency (including, without limitation,
any registration of this Amendment with the State Administration of Foreign
Exchange) is required on the part of the Guarantor for the Guarantor to make and
give this Amendment and to perform its obligations under the Guarantee
Agreement, as amended hereby, in respect of the transactions contemplated by
Restated Credit Agreement. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(d)</FONT><FONT face=sans-serif> </FONT><FONT face=serif size=2>The Guarantor hereby acknowledges and confirms that (i) it does not have
any grounds, and hereby agrees not to challenge (or to allege or to pursue any
matter, cause or claim arising under or with respect to) the effectiveness,
genuineness, validity, collectibility or enforceability of the Restated Credit
Agreement or any of the other Finance Documents, the Secured Obligations, the
Liens securing such Secured Obligations, or any of the terms or conditions of
any Finance Document and (ii) it does not possess (and hereby forever waives,
remises, releases, discharges and holds harmless the Lenders, the Agents and
their respective affiliates, stockholders, directors, officers, employees,
attorneys, agents and representatives and each of their respective heirs,
executors, administrators, successors and assigns (collectively, the
&#147;Indemnified Parties&#148;) from and against, and agrees not to allege or pursue) any
action, cause of action, suit, debt, claim, counterclaim, cross-claim, demand,
defense, offset, opposition, demand and other right of action whatsoever,
whether in law, equity or otherwise (which it, all those claiming by, through or
under it, or its successors or assigns, have or may have) against the
Indemnified Parties, or any of them, by reason of, any matter, cause or thing
whatsoever, with respect to events or omissions occurring or arising on or prior
to the date hereof and relating to the Restated Credit Agreement or any of the
other Finance Documents (including, without limitation, with respect to the
payment, performance, validity or enforceability of the Secured Obligations, the
Liens securing the Secured Obligations or any or all of the terms or conditions
of any Finance Document) or any transaction relating thereto. </FONT></P>
<P align=left><FONT face=serif size=2><FONT size=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>4.</FONT><FONT face=sans-serif> </FONT><U><FONT face=serif size=2>Reference to and Effect on
the Guarantee Agreement</FONT></U><FONT face=serif size=2>. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(a)</FONT><FONT face=sans-serif> </FONT><FONT face=serif size=2>Upon the effectiveness hereof, each reference to the Guarantee Agreement
in the Guarantee Agreement or any other Finance Document shall mean and be a
reference to the Guarantee Agreement as amended hereby. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(b)</FONT><FONT face=sans-serif> </FONT><FONT face=serif size=2>Except as specifically amended above, the Guarantee Agreement and all
other documents, instruments and agreements executed and/or delivered in
connection therewith shall remain in full force and effect and are hereby
ratified and confirmed. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>(c)</FONT><FONT face=sans-serif> </FONT><FONT face=serif size=2>The execution, delivery and effectiveness of this Amendment shall not
operate as a waiver of any right, power or remedy of the Administrative Agent or
the Lenders, nor constitute a waiver of any provision of the Guarantee Agreement
or any other documents, instruments and agreements executed and/or delivered in
connection therewith. </FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>5.</FONT><FONT face=sans-serif> </FONT><U><FONT face=serif size=2>Governing Law</FONT></U><FONT face=serif size=2>. This Amendment shall be
construed in accordance with and governed by the law of the State of New York.
</FONT></P>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>6.</FONT><FONT face=sans-serif> </FONT><U><FONT face=serif size=2>Headings</FONT></U><FONT face=serif size=2>. Section headings in this
Amendment are included herein for convenience of reference only and shall not
constitute a part of this Amendment for any other purpose. </FONT></P>
<P align=center><FONT face=serif size=2>4 </FONT></P>
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<PAGE>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>7.</FONT><FONT face=sans-serif> </FONT><U><FONT face=serif size=2>Counterparts</FONT></U><FONT face=serif size=2>. This Amendment may be
executed by one or more of the parties hereto on any number of separate
counterparts, and all of said counterparts taken together shall be deemed to
constitute one and the same instrument. Signatures delivered by facsimile or PDF
shall have the same force and effect as manual signatures delivered in person.
</FONT></P>
<P align=center><FONT face=serif size=2>[Signature Pages Follow] </FONT></P>
<P align=center><FONT face=serif size=2>5 </FONT></P>
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<PAGE>
<P align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face=serif size=2>IN WITNESS WHEREOF, this Amendment has been duly executed as
of the day and year first above written. </FONT></P>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="49%"></TD>
    <TD noWrap align=left width="51%" colSpan=3><FONT face=serif size=2>PHOTRONICS, INC.,</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="49%"></TD>
    <TD noWrap align=left width="51%" colSpan=3><FONT face=serif size=2>as the
      Guarantor</FONT>&nbsp; </TD></TR>
  <TR>
    <TD width="49%"></TD>
    <TD width="1%"></TD>
    <TD width="50%" colSpan=2>&nbsp; </TD></TR>
  <TR>
    <TD width="49%"></TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="50%" colSpan=2>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="49%"></TD>
    <TD noWrap align=left width="1%"><FONT size=2>By:</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="25%"><FONT face=serif size=2>&nbsp;</FONT></TD>
    <TD noWrap align=left width="25%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="49%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="50%" colSpan=2><FONT face=serif size=2>Name:</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="49%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="50%" colSpan=2><FONT face=serif size=2>Title:</FONT>&nbsp; </TD></TR></TABLE><BR>
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<PAGE><BR>
<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0>

  <TR vAlign=bottom>
    <TD noWrap align=left width="49%"></TD>
    <TD align=left width="51%" colSpan=3>
      <P align=left><FONT face=serif size=2>JPMORGAN CHASE BANK (CHINA) COMPANY
      LIMITED, <BR>SHANGHAI BRANCH, as Administrative Agent (for and on
      <BR>behalf of itself and the Majority Lenders under the Restated
      <BR>Credit Agreement) </FONT></P></TD></TR>
  <TR>
    <TD width="49%"></TD>
    <TD width="1%"></TD>
    <TD width="50%" colSpan=2>&nbsp; </TD></TR>
  <TR>
    <TD width="49%"></TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="50%" colSpan=2>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="49%"></TD>
    <TD noWrap align=left width="1%"><FONT size=2>By:</FONT></TD>
    <TD style="BORDER-BOTTOM: #000000 1pt solid" noWrap align=left width="25%"><FONT face=serif size=2>&nbsp;</FONT></TD>
    <TD noWrap align=left width="25%">&nbsp;</TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="49%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="50%" colSpan=2><FONT face=serif size=2>Name:</FONT>&nbsp; </TD></TR>
  <TR vAlign=bottom>
    <TD noWrap align=left width="49%"></TD>
    <TD noWrap align=left width="1%"></TD>
    <TD noWrap align=left width="50%" colSpan=2><FONT face=serif size=2>Title:</FONT>&nbsp; </TD></TR></TABLE><BR>
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