Fortune's Philip Elmer-DeWitt picks out some "it sucks to be you" highlights from GTAT COO Daniel Squiller's post-bankruptcy court revised declaration:
- GTAT committed to supply millions of units of sapphire material. Apple, however, has no obligation to buy any of that sapphire material.
- GTAT is prohibited from modifying any equipment, specifications, manufacturing process or materials without Apple’s prior consent. Apple can modify any of these terms at any time and GTAT must immediately implement Apple’s modifications.
- GTAT must accept and fulfill any purchase order placed by Apple on the date selected by Apple. If there is any delay, GTAT must either use expedited shipping (at its own cost) or purchase substitute goods (at its own cost). If GTAT’s delivery is late, GTAT must pay $320,000 per boule of sapphire (and $77 per millimeter of sapphire material) as liquidated damages to Apple. To put this figure in perspective, a boule has a cost of less than $20,000. Apple, however, has the right, without compensating GTAT, to cancel a purchase order in whole or in part at any time and reschedule a delivery date at any time.
Guys, this is what happens when you say OK to Apple EULAs without reading.