----

**ENERGY CONVERSION DEVICES, INC.**

**EXECUTIVE SEVERANCE PLAN**

----

Effective July 24, 2007

(As amended through September 30, 2008)

----

 

 

 

**TABLE OF CONTENTS**

 

|   | **Section 1.** | **Introduction** | **1** |
|--------|----------------|------------------|-------|

|   | **1.1.** | **Purpose.** | **1** |
|--------|----------|--------------|-------|

|   | **1.2.** | **Effective Date.** | **1** |
|--------|----------|---------------------|-------|

|   | **Section 2.** | **Definitions and Construction** | **2** |
|--------|----------------|----------------------------------|-------|

|   | **2.1.** | **Definitions.** | **2** |
|--------|----------|------------------|-------|

|   | **2.2.** | **Gender and Number.** | **3** |
|--------|----------|------------------------|-------|

|   | **2.3.** | **Section 409A** | **3** |
|--------|----------|------------------|-------|

|   | **Section 3.** | **Participation by Eligible Executives** | **4** |
|--------|----------------|------------------------------------------|-------|

|   | **3.1.** | **Generally.** | **4** |
|--------|----------|----------------|-------|

|   | **3.2.** | **Participation Agreement Required.** | **4** |
|--------|----------|---------------------------------------|-------|

|   | **Section 4.** | **Severance Benefits** | **5** |
|--------|----------------|------------------------|-------|

|   | **4.1.** | **Basic Severance Benefits.** | **5** |
|--------|----------|-------------------------------|-------|

|   | **4.2.** | **Medical and Dental Benefits.** | **7** |
|--------|----------|----------------------------------|-------|

|   | **4.3.** | **Equity Awards** | **7** |
|--------|----------|-------------------|-------|

|   | **4.4.** | **Outplacement Services** | **8** |
|--------|----------|---------------------------|-------|

|   | **4.5.** | **Gross-Up Payment/Reduction of Benefits** | **8** |
|--------|----------|--------------------------------------------|-------|

|   | **4.6.** | **Qualifying Termination.** | **10** |
|--------|----------|-----------------------------|--------|

|   | **Section 5.** | **Covenants** | **12** |
|--------|----------------|---------------|--------|

|   | **5.1.** | **Generally.** | **12** |
|--------|----------|----------------|--------|

|   | **5.2.** | **Noncompetition.** | **12** |
|--------|----------|---------------------|--------|

|   | **5.3.** | **Interference with Business Relations.** | **12** |
|--------|----------|-------------------------------------------|--------|

|   | **5.4.** | **Proprietary and Confidential Information.** | **13** |
|--------|----------|-----------------------------------------------|--------|

|   | **5.5.** | **Nondisparagement** | **13** |
|--------|----------|----------------------|--------|

|   | **5.6.** | **Cooperation** | **13** |
|--------|----------|-----------------|--------|

|   | **5.7.** | **Recoupment** | **14** |
|--------|----------|----------------|--------|

|   | **Section 6.** | **Release** | **15** |
|--------|----------------|-------------|--------|

|   | **6.1.** | **Generally.** | **15** |
|--------|----------|----------------|--------|

|   | **6.2.** | **Time Limit for Providing Release.** | **15** |
|--------|----------|---------------------------------------|--------|

|   | **Section 7.** | **Nature of Participant’s Interest in the Plan** | **16** |
|--------|----------------|-------------------------------------------------------|--------|

|   | **7.1.** | **No Right to Assets.** | **16** |
|--------|----------|-------------------------|--------|

|   | **7.2.** | **No Right to Transfer Interest.** | **16** |
|--------|----------|------------------------------------|--------|

|   | **7.3.** | **No Employment Rights.** | **16** |
|--------|----------|---------------------------|--------|

|   | **7.4.** | **Withholding and Tax Liabilities.** | **16** |
|--------|----------|--------------------------------------|--------|

 

i

 

| Energy Conversion Devices, Inc.Executive Severance Plan | Table of ContentsSeptember 30, 2008 |
|---------------------------------------------------------|-------------------------------------|

 

----