##### 



Exhibit 10.38
  MASSACHUSETTS TECHNOLOGY PARK CORPORATION
PROJECT GRANT AGREEMENT
  Whereas,
 Whereas
 Whereas,
 Now therefore,
 Term and Termination
 The Grant
 Use of Proceeds




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##### 



Project Grant Agreement: Evergreen Solar, Inc.
 Reporting
 Invoices/Payment Schedule Cost Reimbursement. Invoices Payment Terms.
 Events of Default
 Page 2




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Project Grant Agreement: Evergreen Solar, Inc.
  Assignment
 Grantees Commitments
 Page 3




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Project Grant Agreement: Evergreen Solar, Inc.
  Repayment Provisions
 Page 4




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##### 



Project Grant Agreement: Evergreen Solar, Inc.
  Nondiscrimination
 Indemnification and Insurance
 Page 5




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##### 



Project Grant Agreement: Evergreen Solar, Inc.
 Public Records
 Document Review Rights
 Lobbying
 Choice of Law
 Force Majeure
 Page 6




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##### 



Project Grant Agreement: Evergreen Solar, Inc.
 Waivers
 Notice
 napolitano@masstech.org
  Amendments, Entire Agreement and Attachments
 
 The Massachusetts Technology Park Corporationd/b/a Massachusetts Technology Collaborative
    
    Evergreen Solar, Inc.By:
    
    By:Name:Mitchell Adams
    
    Name:Title:Executive Director
    
    Title:Date:
    
    Date:
 Page 7




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##### 



Project Grant Agreement: Evergreen Solar, Inc.
 Attachment A
 The Massachusetts
Technology Collaborative Policy And Procedures Regarding Submission Of Sensitive
Information
   It is MTCs
expectation and belief that the overwhelming percentage of documents it receives from a
Submitting Party does not contain any information that would warrant an assertion by MTC of an
exemption from the Public Records Act. Submitting Parties should therefore take care in determining
which documents they submit to MTC, and should assume that all documents submitted to MTC are
subject to public disclosure without any prior notice to the
Submitting Party and without resort to any formal public records request.
    Page 8




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##### 



Project Grant Agreement: Evergreen Solar, Inc.
  Information
Submitted to MTC in any form other than a hard copy document will not be subject to the
procedures set forth in this Policy. For example, information submitted by e-mail, facsimile and/or
verbally will not be subject to these procedures and may be disclosed at any time without notice to
the Submitting Party.
     The General
Counsel is the sole authority within MTC for making determinations on the applicability
and/or assertion of an exemption to the Public Records Act. No employee of MTC other than the
General Counsel has any authority to address issues concerning the status of Sensitive
Information or to bind MTC in any manner concerning MTCs treatment and disclosure of such
documents. Furthermore, the potential applicability of an exemption to the disclosure of documents
designated by the Submitting Party as Sensitive Information shall not require MTC to assert such
an exemption. MTCs General Counsel retains the sole discretion and authority to assert an
exemption, and he may decline to exert such an exemption if, within his discretion, the public
interest is served by the disclosure of any documents submitted by
the Submitting Party.
 Page 9




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##### 



Project Grant Agreement: Evergreen Solar, Inc.
    The Submitting
 Partys submission of documentation to MTC shall require a signed certification that
Submitting Party acknowledges, understands and agrees with the applicability of the foregoing
procedures to any documents submitted to MTC by Submitting Party at any time, including but not
limited to the acknowledgements set forth herein, and that Submitting Party shall be bound by these
procedures.
  Page 10




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##### 



Project Grant Agreement: Evergreen Solar, Inc.
 Attachment B
Evergreen Grant Analysis  See Attached
 Page 11




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##### 



Evergreen  Grant Analysis
 Job-Years ifYear
    
    Target
    
    Target Achieved1
    
    
    360
    
    
    
    502
    
    
    510
    
    
    
    2003
    
    
    610
    
    
    
    3004
    
    
    660
    
    
    
    3505
    
    
    660
    
    
    
    3506
    
    
    660
    
    
    
    3507
    
    
    660
    
    
    
    3508
    
    
    660
    
    
    
    350Total Job Years
    
    
    
    
    
    
    2300Grant Amount
    
    
    
    
    
    $
    10,000,000Amount per Job Year
    
    
    
    
    
    $4,348
    GrantAmount/JobYearsBaseline Jobs (to be retained)
    
    
    
    
    
    
    310
 EXAMPLES
 Year
    
    1
    
    
    2
    
    
    3
    
    
    4
    
    
    5
    
    
    6
    
    
    7
    
    
    8
    
    
    TotalExample 1Actual Job Years Reported
    
    
    660
    
    
    
    660
    
    
    
    800
    
    
    
    800
    
    
    
    750
    
    
    
    750
    
    
    
    750
    
    
    
    750Targeted Job Years Created Above Baseline
    
    
    50
    
    
    
    200
    
    
    
    300
    
    
    
    350
    
    
    
    350
    
    
    
    350
    
    
    
    350
    
    
    
    350
    
    
    
    2300Less Actual Job Years Created Above Baseline
    
    
    350
    
    
    
    350
    
    
    
    490
    
    
    
    490
    
    
    
    440
    
    
    
    440
    
    
    
    440
    
    
    
    440
    
    
    
    3440Variance from Target
    
    
    300
    
    
    
    150
    
    
    
    190
    
    
    
    140
    
    
    
    90
    
    
    
    90
    
    
    
    90
    
    
    
    90
    
    
    
    1140Job Years Earned (not to exceed 2,300)
    
    
    350
    
    
    
    350
    
    
    
    490
    
    
    
    490
    
    
    
    440
    
    
    
    180
    
    
    
    0
    
    
    
    0Cumulative Job Years Earned
    
    
    350
    
    
    
    700
    
    
    
    1190
    
    
    
    1680
    
    
    
    2120
    
    
    
    2300
    
    
    
    2300
    
    
    
    2300Job Years Forfeited
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    0Cumulative Job Years Forfeited
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    0EarningsActual Job Years Earned
    
    
    350
    
    
    
    350
    
    
    
    490
    
    
    
    490
    
    
    
    440
    
    
    
    180
    
    
    
    
    
    
    
    
    
    
    
    2,300Multiplied by Amount/Job Year
    
    $
    4,348
    
    
    $
    4,348
    
    
    $
    4,348
    
    
    $
    4,348
    
    
    $
    4,348
    
    
    $
    4,348
    
    
    $
    4,348
    
    
    $
    4,348
    
    
    $
    4,348Total Earned Amount
    
    $
    1,521,739
    
    
    $
    1,521,739
    
    
    $
    2,130,435
    
    
    $
    2,130,435
    
    
    $
    1,913,043
    
    
    $
    782,609
    
    
    $
    0
    
    
    $
    0
    
    
    $
    10,000,000Forfeitures*Job Years Forfeited
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Multiplied by Amount/Job Year
    
    $
    4,348
    
    
    $
    4,348
    
    
    $
    4,348
    
    
    $
    4,348
    
    
    $
    4,348
    
    
    $
    4,348
    
    
    $
    4,348
    
    
    $
    4,348
    
    
    $
    4,348Total Forfeited Amount
    
    $
    0
    
    
    $
    0
    
    
    $
    0
    
    
    $
    0
    
    
    $
    0
    
    
    $
    0
    
    
    $
    0
    
    
    $
    0
    
    
    $
    0Cumulative Earned Amount
    
    $
    1,521,739
    
    
    $
    3,043,478
    
    
    $
    5,173,913
    
    
    $
    7,304,348
    
    
    $
    9,217,391
    
    
    $
    10,000,000
    
    
    $
    10,000,000
    
    
    $
    10,000,000Cumulative Forfeited Amount
    
    $
    0
    
    
    $
    0
    
    
    $
    0
    
    
    $
    0
    
    
    $
    0
    
    
    $
    0
    
    
    $
    0
    
    
    $
    0
 
 *
    
    NOTE: A positive forfeiture amount indicates a previously forfeited amount that MTC will return
to Evergreen Example 2Actual Job Years Reported
    
    
    310
    
    
    
    400
    
    
    
    510
    
    
    
    600
    
    
    
    660
    
    
    
    670
    
    
    
    700
    
    
    
    700Targeted Job Years Created Above Baseline
    
    
    50
    
    
    
    200
    
    
    
    300
    
    
    
    350
    
    
    
    350
    
    
    
    350
    
    
    
    350
    
    
    
    350
    
    
    
    2300Less Actual Job Years Created Above Baseline
    
    
    0
    
    
    
    90
    
    
    
    200
    
    
    
    290
    
    
    
    350
    
    
    
    360
    
    
    
    390
    
    
    
    390
    
    
    
    2070Variance from Target
    
    
    -50
    
    
    
    -110
    
    
    
    -100
    
    
    
    -60
    
    
    
    0
    
    
    
    10
    
    
    
    40
    
    
    
    40
    
    
    
    -230Job Years Earned (not to exceed 2,300)
    
    
    0
    
    
    
    90
    
    
    
    200
    
    
    
    290
    
    
    
    350
    
    
    
    360
    
    
    
    390
    
    
    
    390Cumulative Job Years Earned
    
    
    0
    
    
    
    90
    
    
    
    290
    
    
    
    580
    
    
    
    930
    
    
    
    1290
    
    
    
    1680
    
    
    
    2070Job Years Forfeited
    
    
    -50
    
    
    
    -110
    
    
    
    -100
    
    
    
    -60
    
    
    
    0
    
    
    
    10
    
    
    
    40
    
    
    
    40Cumulative Job Years Forfeited
    
    
    -50
    
    
    
    -160
    
    
    
    -260
    
    
    
    -320
    
    
    
    -320
    
    
    
    -310
    
    
    
    -270
    
    
    
    -230EarningsActual Job Years Earned
    
    
    
    
    
    
    90
    
    
    
    200
    
    
    
    290
    
    
    
    350
    
    
    
    360
    
    
    
    390
    
    
    
    390
    
    
    
    2,070Multiplied by Amount/Job Year
    
    $
    4,348
    
    
    $
    4,348
    
    
    $
    4,348
    
    
    $
    4,348
    
    
    $
    4,348
    
    
    $
    4,348
    
    
    $
    4,348
    
    
    $
    4,348
    
    
    $
    4,348Total Earned Amount
    
    $
    0
    
    
    $
    391,304
    
    
    $
    869,565
    
    
    $
    1,260,870
    
    
    $
    1,521,739
    
    
    $
    1,565,217
    
    
    $
    1,695,652
    
    
    $
    1,695,652
    
    
    $
    9,000,000Forfeitures*Job Years Forfeited
    
    
    (50
    )
    
    
    (110
    )
    
    
    (100
    )
    
    
    (60
    )
    
    
    
    
    
    
    10
    
    
    
    40
    
    
    
    40
    
    
    
    (230
    )Multiplied by Amount/Job Year
    
    $
    4,348
    
    
    $
    4,348
    
    
    $
    4,348
    
    
    $
    4,348
    
    
    $
    4,348
    
    
    $
    4,348
    
    
    $
    4,348
    
    
    $
    4,348
    
    
    $
    4,348Total Forfeited Amount
    
    -$
    217,391
    
    
    -$
    478,261
    
    
    -$
    434,783
    
    
    -$
    260,870
    
    
    $
    0
    
    
    $
    43,478
    
    
    $
    173,913
    
    
    $
    173,913
    
    
    -$
    1,000,000Cumulative Earned Amount
    
    $
    0
    
    
    $
    391,304
    
    
    $
    1,260,870
    
    
    $
    2,521,739
    
    
    $
    4,043,478
    
    
    $
    5,608,696
    
    
    $
    7,304,348
    
    
    $
    9,000,000Cumulative Forfeited Amount
    
    -$
    217,391
    
    
    -$
    695,652
    
    
    -$
    1,130,435
    
    
    -$
    1,391,304
    
    
    -$
    1,391,304
    
    
    -$
    1,347,826
    
    
    -$
    1,173,913
    
    
    -$
    1,000,000
 
 *
    
    NOTE: A positive forfeiture amount indicates a previously forfeited amount that MTC will return
to Evergreen Example 3Actual Job Years Reported
    
    
    310
    
    
    
    660
    
    
    
    660
    
    
    
    661
    
    
    
    659
    
    
    
    660
    
    
    
    660
    
    
    
    660Targeted Job Years Created Above Baseline
    
    
    50
    
    
    
    200
    
    
    
    300
    
    
    
    350
    
    
    
    350
    
    
    
    350
    
    
    
    350
    
    
    
    350
    
    
    
    2300Less Actual Job Years Created Above Baseline
    
    
    0
    
    
    
    350
    
    
    
    350
    
    
    
    351
    
    
    
    349
    
    
    
    350
    
    
    
    350
    
    
    
    350
    
    
    
    2450Variance from Target
    
    
    -50
    
    
    
    150
    
    
    
    50
    
    
    
    1
    
    
    
    -1
    
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    150Job Years Earned (not to exceed 2,300)
    
    
    0
    
    
    
    350
    
    
    
    350
    
    
    
    351
    
    
    
    349
    
    
    
    350
    
    
    
    350
    
    
    
    200Cumulative Job Years Earned
    
    
    0
    
    
    
    350
    
    
    
    700
    
    
    
    1051
    
    
    
    1400
    
    
    
    1750
    
    
    
    2100
    
    
    
    2300Job Years Forfeited
    
    
    -50
    
    
    
    50
    
    
    
    0
    
    
    
    0
    
    
    
    -1
    
    
    
    0
    
    
    
    0
    
    
    
    0Cumulative Job Years Forfeited
    
    
    -50
    
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    -1
    
    
    
    -1
    
    
    
    -1
    
    
    
    -1EarningsActual Job Years Earned
    
    
    
    
    
    
    350
    
    
    
    350
    
    
    
    351
    
    
    
    349
    
    
    
    350
    
    
    
    350
    
    
    
    200
    
    
    
    2,300Multiplied by Amount/Job Year
    
    $
    4,348
    
    
    $
    4,348
    
    
    $
    4,348
    
    
    $
    4,348
    
    
    $
    4,348
    
    
    $
    4,348
    
    
    $
    4,348
    
    
    $
    4,348
    
    
    $
    4,348Total Earned Amount
    
    $
    0
    
    
    $
    1,521,739
    
    
    $
    1,521,739
    
    
    $
    1,526,087
    
    
    $
    1,517,391
    
    
    $
    1,521,739
    
    
    $
    1,521,739
    
    
    $
    869,565
    
    
    $
    10,000,000Forfeitures*Job Years Forfeited
    
    
    (50
    )
    
    
    50
    
    
    
    
    
    
    
    
    
    
    
    (1
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1
    )Multiplied by Amount/Job Year
    
    $
    4,348
    
    
    $
    4,348
    
    
    $
    4,348
    
    
    $
    4,348
    
    
    $
    4,348
    
    
    $
    4,348
    
    
    $
    4,348
    
    
    $
    4,348
    
    
    $
    4,348Total Forfeited Amount
    
    -$
    217,391
    
    
    $
    217,391
    
    
    $
    0
    
    
    $
    0
    
    
    -$
    4,348
    
    
    $
    0
    
    
    $
    0
    
    
    $
    0
    
    
    -$
    4,348True  Up Payment(in the event that Grantee achieves the creation on a cumulative basis of 2300 Job Years on or before the last day of the 8th year following the Effective
Date, MTC shall pay back to Grantee any and all amounts previously paid by Recipient to MTC as Forfeiture Amounts)
    
    $
    4,348Cumulative Earned Amount
    
    $
    0
    
    
    $
    1,521,739
    
    
    $
    3,043,478
    
    
    $
    4,569,565
    
    
    $
    6,086,957
    
    
    $
    7,608,696
    
    
    $
    9,130,435
    
    
    $
    10,000,000Cumulative Forfeited Amount
    
    -$
    217,391
    
    
    $
    0
    
    
    $
    0
    
    
    $
    0
    
    
    -$
    4,348
    
    
    -$
    4,348
    
    
    -$
    4,348
    
    
    -$
    4,348
 
 *
    
    NOTE: A positive forfeiture amount indicates a previously
forfeited amount that MTC will return to Evergreen;




---



##### 



Project Grant Agreement: Evergreen Solar, Inc.
 Attachment C
 Example 1
  MTC Grant
    
    $
    10,000,000
    
    
    
    20
    %Company Equity
    
    
    40,000,000
    
    
    
    80
    %Invoice :
    
    $
    1,000,000Grant Draw
    
    $
    200,000
    
    
    
    (20
    %)Company Funds Draw
    
    
    800,000
    
    
    
    (80
    %)
 Example 2
  MTC Grant
    
    $
    10,000,000Bank Loan
    
    $
    25,000,000Company Equity
    
    $
    25,000,000Invoice:
    
    $
    1,000,000Grant Draw:
    
    $
    166,667Bank Draw & Company Equity*
    
    $
    833,333
    *
 
 Ratio to be negotiated between Co. and party lending for construction Page 12