Document:

openenergy_10q-ex1005.htm

    EXHIBIT 10.5

    
 

    
      VERSION
WITH CONFIDENTIAL TERMS EXCLUDED

       

    

    MANUFACTURING
AND LICENSE AGREEMENT

     

    THIS MANUFACTURING AND LICENSE
AGREEMENT (the “Agreement”) is made
and entered into as of December 17, 2008 (the “Effective Date”) by
and between OPEN ENERGY CORPORATION, a Nevada corporation (“Licensor”), having a
principal place of business at 514 Via de la Valle, Suite 200, Solana Beach,
California 92075, and WUXI SUNTECH POWER CO., LTD., a corporation organized
under the laws of the People’s Republic of China (“Suntech”) having a
principal place of business at 17-6 Chang Jiang South Road, New District Wuxi,
China 214028.

     

    1.           Definitions and Grant of
License.

     

    1.1             “Affiliate” means,
with respect to either party, any other party that, directly or indirectly
controls or is controlled by or is under common control with such
party.  For purposes of this definition, “control” means the
possession, directly or indirectly, of the power to direct or cause the
direction of management or policies of such party through the ownership of
voting securities.

     

    1.2             “Licensor Technology”
means all Technology provided by Licensor to Suntech pursuant to this
Agreement.

     

    1.3             “Ancillary Technology”
means all tooling, test equipment, test programs and fixtures that Licensor
provides to Suntech hereunder.

     

    1.4             “Confidential
Information” means all non-public information that the party disclosing
the information (the “Disclosing Party”)
designates at the time of disclosure as being confidential, or if disclosed
orally or visually is identified as such prior to disclosure and summarized, in
writing, by the Disclosing Party to the receiving party (the “Receiving Party”)
within thirty (30) days,, without limitation, the terms and conditions of this
Agreement and the Disclosing Party’s trade secrets, know-how, inventions,
techniques, processes, algorithms, software programs, schematics, designs,
contracts, customer lists, financial information, sales and marketing plans and
business information.  Confidential Information does not include
information which (i) is or becomes generally available to the public other than
as a result of disclosure by the Receiving Party or any of its Representatives
or (ii) is already available to, or becomes available to, the Receiving Party on
a non-confidential basis from a source other than Disclosing Party or any of its
Representatives; provided, that such source is not bound by a confidentiality
agreement with, or other contractual, legal or fiduciary obligation of
confidentiality to, Disclosing Party or any other party with respect to such
information.

     

    1.5             “Derivative(s)” means
any improvement, modification, correction, variation, enhancement or revision
relative to any Intellectual Property Rights applicable to the
Products.

     

    1.6             “Intellectual Property
Rights” means copyright rights (including, without limitation, the
exclusive right to use, reproduce, modify, distribute, publicly display and
publicly perform the copyrighted work), trademark rights (including, without
limitation, trade names, trademarks, service marks, and trade dress), patent
rights (including, without limitation, the exclusive right to make, use and
sell), pending patent rights, trade secrets, moral rights, right of publicity,
authors’ rights, contract and licensing rights, goodwill, Technology,
Specifications (only as it refers to Licensor Intellectual Property) and all
other intellectual property rights as may exist now and/or hereafter come into
existence and all renewals and extensions thereof, regardless of whether such
rights arise under the law of the United States or any other state, country or
jurisdiction.

     

    
      
        
        

      

      
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    1.7             “Manufacturing
Facility” means Suntech’s manufacturing facility in Wuxi, Jiangsu
Province, People’s Republic of China.

     

    1.8             “Products” means the
products identified on Exhibit A hereto, and any Derivatives
thereof.

     

    1.9             “Specifications” means
the functional and performance specifications (including, without limitation,
bills of materials, schematic diagrams, parts and assembly drawings) relating to
the testing and manufacturing of each Product as provided by
Licensor.

     

    1.10           “Suntech Materials”
means the photovoltaic panels and other Suntech inventory (excluding the
Licensor Materials) incorporated into the Products.

     

    1.11           “Suntech Technology”
means the Technology provided by Suntech to Licensor pursuant to this Agreement
and all Derivatives thereof, specifically excluding that technology defined as
Licensor Technology.

     

    1.12           “Technology” means all
technical information and/or materials, including, without limitation, ideas,
techniques, designs, sketches, drawings, models, inventions, know-how,
processes, apparatus, methods, equipment, algorithms, software programs, data,
software source documents, other works of authorship, formulae and information
concerning engineering, research, experimental work, development, design details
and specifications.

     

    1.13           “Trademarks” means the
trademarks, trade names and service marks adopted by Licensor or Suntech, as the
case may be, or their licensors from time to time.

     

    1.14             Licenses
Granted.  Subject to full and timely payment of all amounts
properly due under this Agreement, Licensor hereby grants to Suntech an
exclusive, nontransferable, world-wide, royalty-bearing license, without the
right to sublicense, under the Intellectual Property Rights associated, solely
internally and solely for the purpose of making, having made, using, selling,
and offering for sale Products (including any Derivative thereof and any similar
or new generation products designed to be integrated into or affixed to membrane
and similar flat roofing material, and any similar or new generation products )
limited to the geographic area specified on Exhibit B (the
“Territory”).  . Licensor expressly reserves its own right to improve,
modify, develop and create Derivatives of the Products, provided that, such
Derivatives shall be subject to this Agreement and the license granted
hereby.

     

    
      
        
        

      

      
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    2.           Manufacturing
Obligations.

     

    2.1             Manufacturing.  Suntech
agrees to manufacture the Products, upon the terms and conditions of this
Agreement.  Suntech shall manufacture such Products in accordance with
normal and customary quality requirements for a high quality contract
manufacturer and in accordance with the applicable
Specifications.  Suntech agrees to reserve  production
capacity (measured in Megawatts) for manufacture of the Products in at least the
amounts corresponding to the quantity of Products the sale of which would
generate  at least the Minimum Royalty for each applicable period set
forth in Section 3.4, provided that the Products have, in the case of North
American sales, either UL or CSA certification, and, in the case of European
sales, IEC certification.

     

    2.2             Testing. Suntech will
only ship Products which have been tested successfully according to its normal
procedures.  Suntech will perform final testing of all Products at the
Manufacturing Facility.

     

    2.3             Ancillary
Technology.  Licensor, with consent of Suntech, may furnish
Ancillary Technology to Suntech for use solely in the manufacture and testing of
the Products.  Suntech will not at any time use the Ancillary
Technology for any other purposes or for any third parties or in any manner
other than in performing Suntech’s obligations under this Agreement. Suntech
acknowledges that any Ancillary Technology furnished to Suntech hereunder has
been provided without additional consideration for Suntech’s convenience and
Licensor specifically disclaims any and all warranties with respect to the
Ancillary Technology, which shall be furnished, if at all, with all
faults.

     

    2.4             Identification.  The
Products shall include Suntech labels of its own choosing and on the product
label the statement “Powered by Open Energy Technology” or similar phrase
incorporating Licensor’s corporate name and/or designated mark.  To
the extent Suntech’s website describes the Products in reasonable detail,
Suntech shall include a similar statement on that section of its website which
describes the Products.

     

    2.5             License to Suntech
Technology.  To the extent that Suntech provides any Suntech
Technology to Licensor, Suntech hereby grants to Licensor a royalty-free license
to use the Suntech Technology provided to Licensor in connection with the
development and testing of the Products.

     

    2.6             Restrictions.  Except
as expressly set forth above, each party retains all of its Intellectual
Property Rights.  No license is granted by Licensor to make, use or
sell any other products under the Licensor Intellectual Property Rights or to
make, use or sell any products for any other purpose.  Except as
provided for in this Agreement, Suntech will not disclose Licensor’s
Intellectual Property Rights to any third party.  Suntech will not
modify or reverse engineer any Licensor Technology.

     

    2.7        
   Marketing.
Notwithstanding any of the above, each party may use the other party’s name,
tradenames, trademark, and other related intellectual property, including
photographs or other copyrighted works, solely for the purpose of marketing or
promotional materials.  To the extent that a party has guidelines
governing use of such property, the other party shall abide by such governing
rules, except to the extent that prior permission is required by such governing
rules.

     

    
      
         

      

      
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    3.           Responsibilities of the
Parties.

     

    3.1             Royalties.  Suntech
shall pay royalties to Licensor as specified in the attached Exhibit C (the “Royalties”), for each
Product manufactured in accordance with this Agreement.  The Royalties
with respect to a Product shall accrue upon its sale in accordance with the
Agreement.  Royalties shall be payable to Licensor on or before the
fifteenth (15th) day of the calendar month immediately following each calendar
quarter in which the Royalties accrued.  All Royalties are in U.S.
dollars and payment shall be made in U.S. dollars. To the extent that Licensor
has defaulted on any other payments under any other valid agreement or order
with Suntech, Suntech may offset the Royalties owed under this Agreement by 75%
until such time as such default amounts are completely repaid.

     

    3.2             Royalty
Statements.  Suntech shall furnish to Licensor, on or prior to
the fifteenth (15th) day of the calendar month immediately following each
calendar quarter, a full and complete statement, showing the number of each type
of Product manufactured during the calendar quarter in question, the total
wattage for each such Product, the total gross sales revenues for each such
Product,  the amount of royalties due with respect to such gross sales
revenues, the quantities of each Product on hand and in transit as of the end of
the month, and the name and address of each wholesaler or other party to which
Suntech has sold the Products during the month.  There shall be a
breakdown of sales of Products by country, and all figures and monetary amounts
shall first be stated in the currency in which the pertinent sales were actually
made.  If several currencies are involved in any reporting category,
that category shall be broken down by each currency.  Next to each
currency amount shall be set forth the equivalent amount stated in U.S. dollars
as of the date of the applicable transaction, and the rate of exchange used in
making the required conversion calculation.

     

    3.3             Records and Audit
Rights.  Suntech shall keep complete and accurate books of
accounts and records covering all transactions relating to the licenses hereby
granted and the sale and/or distribution
of  Products.  Licensor and its duly authorized
representatives shall have the right, not more than two (2) times per year and
upon reasonable notice and during reasonable hours, to audit such books of
account and records with respect to the subject matter and terms of this
Agreement.  All books of account and records of Suntech shall be kept
available to Licensor for at least three (3) years after the expiration or
termination of this Agreement.  If such audit reveals that the
payments made to Licensor for the period audited are at least five percent (5%)
less than the amount actually payable to Licensor for such period, Suntech shall
reimburse Licensor for all reasonable costs associated with such
audit.

     

    3.4             Minimum
Take.  During calendar year 2010, Suntech will sell a quantity
of Products such that  Royalties would be payable in respect of at
least the following amounts on a worldwide basis (the “Minimum Royalty”) during
such years:

     

    2010

    

    [***]
Megawatts January-June 2010

    

    [***]
Megawatts July-December 2010

    

    2011-2013

     

    [***] Omitted Term

     

    
      
        
        

      

      
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    For each
of years 2011, 2012 and 2013, Suntech and Licensor shall attempt to reach
agreement on a worldwide Minimum Royalty applicable to such years on or prior to
the date that is ninety (90) calendar days prior to the first day of each
year.  Factors that the parties shall consider in negotiating such
Minimum Royalties shall include [***].
If the parties are unable to reach agreement regarding the Minimum Royalty for
any such annual period, then the Minimum Royalty shall equal [***].

     

    In the
event that Suntech fails to sell Products in an amount to generate at least the
Minimum Royalty for any of the periods listed above, then the license granted to
Suntech in Section 1 of this Agreement shall become non-exclusive, and Licensor
shall be free to license any of the Intellectual Property Rights covered hereby
to any other party.  In the event that Suntech affirmatively decides
to cease commercialization of the Products subsequent to December 2010, Licensor
shall have the right to amend this Agreement upon thirty (30) days written
notice to Suntech to be non-exclusive, which notice shall state with specificity
the source of Licensor’s belief that commercialization of the Products has
ceased and Licensor’s intent to amend this Agreement.

     

    3.5             Testing and
Certifications.  Suntech shall use commercially reasonable
efforts to cause the Products to be tested and certified pursuant to IEC
guidelines as soon as reasonably practicable, and pursuant to all other such
applicable  standards and regulations of the various local, state,
federal and international markets in which the Product will be sold or
distributed.  Suntech shall use commercially reasonable efforts to
cause Product sales in Europe within calendar 2009, subject to the prior receipt
of applicable IEC certification as described above in this Section
3.5.

     

    4.           Marketing.  The
Parties shall have the responsibilities as set forth on Exhibit B attached
hereto.

     

    5.           Quality
Assurance.

     

    5.1             Quality
Standards.  Suntech will manufacture the Products in accordance
with the quality requirements, standards and expectations as is usual and
customary.

     

    5.2             Quality
Issues.  Suntech agrees to use reasonable commercial efforts to
inform Licensor of any quality issues concerning the production of the Products
as soon as possible after discovery thereof.

     

    6.           Engineering
Changes

     

    6.1             ECOs.  Licensor
may, upon advance written notice to Suntech, submit engineering change orders
(“ECOs”) for
changes to the Products.  ECOs will include documentation of the
change to effectively support an investigation of the impact of the engineering
change.  Suntech will review the ECO and report to Licensor within
twenty (20) business days of Suntech’s receipt of the ECO.  If the ECO
affects the manufacturing costs or timing of the Products or otherwise affects
the price or manufacturing process of the affected Products, the parties agree
to negotiate in good faith an equitable adjustment to the price and/or delivery
timing of the affected Products prior to implementation of the
change.  The parties agree that twenty (20) business days is a
reasonable time period to permit Suntech to evaluate ECO impact regarding
potential excess manufacturing costs and price.  Suntech may in its
sole discretion decide to reject any ECO that it reasonably believes will
adversely effect its obligations under this Agreement.

     

    [***]
Omitted Term

    
      
         

      

      
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    6.2             No
Changes.  No changes will be made to the Products without
Licensor’s prior written consent and no approved change will be made effective
prior to the date approved by Licensor in writing.  Suntech will not
change or modify the processes for the Products without Licensor’s prior written
consent.  For the avoidance of doubt, to the extent any such approved
change or modification, to the extent it shall constitute intellectual property,
shall be deemed Licensor Intellectual Property Rights, subject to Section 7
below.

     

    7.           Ownership.

     

    7.1             Ownership by
Licensor.  As between Licensor and Suntech, Licensor will own
all right, title, and interest in and to Specifications, Ancillary Technology
and the Licensor Technology and all Intellectual Property Rights therein.
Licensor represents and warrants that it has full and exclusive right and
ownership in the Licensor Technology, Licensor Trademarks, Specifications,
Ancillary Technology and Licensor Intellectual Property
Rights.  During and after the term of this Agreement, Suntech shall,
and shall cause its respective personnel to, from time to time as and when
requested by Licensor in accordance with this Section 7 and at the Licensor’s
expense, but without further consideration, execute any or all papers and
documents and perform any or all other acts necessary or appropriate, in the
reasonable discretion of the Licensor, to evidence or further document the
Licensor’s ownership of such Intellectual Property Rights and
Derivatives.

     

    7.2             Ownership by
Suntech.  As between Suntech and Licensor, Suntech will own all
rights, title and interest in and to the Suntech Technology and all Intellectual
Property rights therein. Suntech represents and warrants that it has full and
exclusive right and ownership in the Suntech Trademarks, Suntech Technology and
Suntech Intellectual Property.

     

    8.           Sales to
Licensor

     

    Suntech
agrees to sell Product to Licensor (or any affiliate or designee thereof) on the
terms set forth on Exhibit D hereof; provided, that, Licensor shall not be
permitted to sell Product in Europe during the term of this Agreement. For the
avoidance of doubt, the purchase of Product by Licensor or its affiliate or
designee shall not generate Royalties consistent with any other sales of Product
hereunder.

     

    
      
        
        

      

      
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    9.           Confidential
Information.

     

    9.1             Confidentiality
Obligations.  Each party acknowledges that in the course of the
performance of this Agreement, it may obtain the Confidential Information of the
other party.  The Receiving Party will, at all times, both during the
term of this Agreement and at all times thereafter, keep in confidence and trust
all of the Disclosing Party’s Confidential Information that it
received.  The Receiving Party will not use the Confidential
Information of the Disclosing Party other than as necessary to perform its
obligations or exercise its rights under this Agreement.  The
Receiving Party will take all reasonable steps to prevent unauthorized
disclosure or use of the Disclosing Party’s Confidential Information and to
prevent it from falling into the public domain or into the possession of
unauthorized parties.  The Receiving Party will not disclose
Confidential Information of the Disclosing Party to any party other than its
officers, employees and consultants who need access to such Confidential
Information in order to effect the intent of this Agreement and who have entered
into written confidentiality agreements with the Receiving Party that protect
the Confidential Information of the Disclosing Party.  The Receiving
Party will immediately give notice to the Disclosing Party of any unauthorized
use or disclosure of Disclosing Party’s Confidential Information.  The
Receiving Party agrees to assist the Disclosing Party in remedying such
unauthorized use or disclosure of its Confidential Information.

     

    9.2             Exclusions.  The
parties’ obligations in Section 9.1 will not apply to the extent that
Confidential Information includes information which: (a) is already known to the
Receiving Party at the time of disclosure, which knowledge the Receiving Party
will have the burden of proving; (b) is, or, through no act or failure to act of
the Receiving Party, becomes publicly known; (c) is received by the Receiving
Party from a third party without restriction on disclosure; (d) is independently
developed by the Receiving Party without reference to the Confidential
Information of the Disclosing Party, which independent development the Receiving
Party will have the burden of proving; or (e) is approved for release by written
authorization of the Disclosing Party.

     

    9.3             Legal
Disclosures.  A disclosure of Confidential Information (a) in
response to a valid order by a court or other governmental body, or (b)
otherwise required by law (including, without limitation, the rules and
regulations of the Securities and Exchange Commission (“SEC”) relating to the
filing of exhibits to filings required under the Securities Act of 1933, as
amended, or the Securities Exchange Act of 1934, as amended) will not be
considered to be a breach of this Agreement or a waiver of confidentiality for
other purposes; provided however, that the
party disclosing such information shall provide prompt written notice thereof to
the other party, so as to enable it to seek a protective order or to otherwise
prevent such disclosure, and will use all reasonable efforts to keep as much
information as possible confidential, including requests for “confidential
treatment” from the SEC.  Either party may disclose general (ie.
non-pricing) information concerning this Agreement and the transactions
contemplated hereby in connection with: (x)  the due diligence review
of a party by potential business partners or investors, or investment bankers,
to such persons and to their employees, agents, attorneys and auditors; and (y)
obtaining legal advice regarding this Agreement or any related matters, to the
party’s outside legal advisors.  Any and all information may be shared
pursuant to quarterly and annual financial or tax audits, to the party’s public
accounting firm.

     

    
      
        
        

      

      
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    9.4             Confidential
Information.  All Specifications and Statements of Work shall
be deemed to be Confidential Information, regardless of whether such information
is marked as confidential or not.

     

    9.5             Notice of
Infringement.  Each of the parties shall promptly report in
writing to the other during the term of this Agreement any suspected
infringement of the Intellectual Property Rights and any suspected unauthorized
use or misappropriation of any Licensor Technology in the Territory of which it
becomes aware, and shall provide the other with all available evidence
supporting such suspected infringement or unauthorized use or
misappropriation.

     

    9.6             Primary
Right.  Licensor shall have the primary right, but not the
obligation, to initiate an appropriate suit anywhere in the world against any
third party who at any time is suspected of infringing all or any portion of the
Intellectual Property Rights or using without proper authorization all or any
portion of the Licensor Technology in the Territory.  Licensor shall
give Suntech sufficient advance notice of its intent to file such suit and the
reasons.  Further, Licensor shall keep Suntech informed, and shall
from time to time consult with Suntech regarding the status of any such
suit.

     

    9.7             Licensee
Participation.  Licensor shall have the sole and exclusive
right to select counsel for any suit referred to in Section 9.6 and this Section
9.7 and shall, except as provided herein, pay all expenses of the suit,
including without limitation attorneys' fees and court
costs.  Licensee shall have the right, but not the obligation, to
contribute fifty percent (50%) of the costs incurred in connection with such
litigation and, if it so elects, any damages, royalties, settlement fees or
other consideration received by Licensor for past infringement or
misappropriation as a result of such litigation shall be shared by Licensee and
Licensor pro rata based on their respective sharing of the costs of such
litigation.  In the event that Licensee elects not to contribute to
the costs of such litigation, Licensor shall be entitled to retain any damages,
royalties, settlement fees or other consideration resulting
therefrom.  If necessary, Licensee shall join as a party to the suit
but shall be under no obligation to participate except to the extent that such
participation is required as the result of being a named party to the
suit.  Licensee shall offer reasonable assistance to Licensor at no
charge to Licensor except for reimbursement of reasonable out-of-pocket expenses
incurred in rendering such assistance.  Licensee shall have the right
to participate and be represented in any such suit by its own counsel at its own
expense.  Licensee shall not settle any such suit involving rights of
Licensor without obtaining the prior written consent of Licensor.

     

    10.           Warranty.

     

    10.1             Product
Warranty.  Suntech will provide a warranty to end users of the
Products with respect to the Products consisting of not less than a power output
warranty of 10 year 90% power output; 20 years, 80 power
output.  Additionally, Suntech warrants for the same period as the
warranty to end users described in the preceding sentence (the “Warranty Period”),
that (a) the Product will conform to the Specifications; (b) the Product will be
of good material and workmanship and free from defects in the manufacture; and
(c) the Product will be free and clear of all liens and encumbrances and that
Suntech will convey good and marketable title to such Product.

     

    
      
        
        

      

      
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    10.2             Materials
Warranty.  Suntech warrants that all Products purchased from or
repaired by Suntech will consist of new materials (not used, recycled or of such
age as to impair its usefulness or safety, except as may be approved in advance
and in writing by Licensor).

     

    10.3             Other Obligations and
Warranties.

     

    (a)           Regulatory
Compliance.  Suntech represents and warrants that the
Manufacturing Facility will comply and its manufacturing processes will be
conducted in accordance with all applicable international, federal, state and
local statutes, laws and regulations.

     

    (b)           Technology
Non-Infringement.  Licensor represents and warrants that none
of the Licensor Technology, the Specifications or the Ancillary Technology
infringes or otherwise misappropriates any third party Intellectual Property
Rights.

     

    (c)           Formation, Good Standing and
Authority.  Each of Suntech and Licensor represents and
warrants to the other that it is a company duly formed, validly existing and in
good standing under the laws of its jurisdiction and that this Agreement has
been duly executed and delivered by it, and (assuming due authorization,
execution and delivery by the other) constitutes a legal, valid and binding
obligation of it, enforceable against it in accordance with its terms, subject
to (i) laws of general application relating to bankruptcy, insolvency and the
relief of debtors, and (ii) rules of law governing specific performance,
injunctive relief and other equitable remedies.

     

    (d)           No
Conflict.  Each of Suntech and Licensor represents and warrants
to the other that the execution, delivery and performance by it of this
Agreement do not and will not (i) violate or conflict with its Certificate of
Incorporation, By-laws or similar governing documents, (ii) conflict with or
violate any law, rule, regulation, order, writ, judgment, injunction, decree,
determination or award applicable to it, or (iii) result in any breach of, or
constitute a default (or event of default that, with the giving of notice or
lapse of time, or both, would become a default) under, or give to others any
rights of termination, amendment, acceleration or cancellation of, or result in
the creation of any lien or other encumbrance on, any of its assets or
properties pursuant to, any note, bond, mortgage, indenture, contract,
agreement, lease, license, permit, franchise or other instrument relating to its
assets or properties to which it is a party or by which any of its assets or
properties is bound or affected.

     

    (e)           Consents and
Approvals.  Each of Suntech and Licensor represents and
warrants to the other that, except for any import and/or export approvals,
licenses and/or other permits as set forth hereunder, the execution, delivery
and performance of this Agreement by it do not and will not (i) require any
consent, approval, authorization or other action by, or filing with or
notification to, any governmental authority, except where the failure to obtain
such consent, approval, authorization or action, or to make such filing or
notification, would not prevent it from performing any of its material
obligations under this Agreement, or ii) require any third-party consents,
approvals, authorizations or actions on its part.

     

    
      
        
        

      

      
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    10.4             Warranty
Disclaimer.  THE WARRANTIES CONTAINED IN THIS SECTION ARE IN
LIEU OF, AND EACH PARTY EXPRESSLY DISCLAIMS AND THE OTHER PARTY WAIVES ALL OTHER
REPRESENTATIONS AND WARRANTIES, EXPRESS, IMPLIED, STATUTORY OR ARISING BY COURSE
OF DEALING OR PERFORMANCE, CUSTOM, USAGE IN THE TRADE OR OTHERWISE, INCLUDING
WITHOUT LIMITATION THE IMPLIED WARRANTIES OF MERCHANTABILITY, NON-INFRINGEMENT
OF THIRD PARTY RIGHTS UNDER THE UNIFORM COMMERCIAL CODE AND FITNESS FOR A
PARTICULAR PURPOSE.

     

    11.           Insurance.  Each
party will maintain workers’ compensation and comprehensive general liability
insurance (including product liability coverage) for claims for damages because
of bodily injury or death and property damage, but in no event, less insurance
than required to sufficiently cover its obligations under this
Agreement.

     

    12.           Term and
Termination.

     

    12.1             Term.  This
Agreement will commence on the Effective Date and will continue until December
31, 2013, unless earlier terminated pursuant to this Agreement (the “Initial
Term”).  After the Initial Term, this Agreement shall
automatically renew for successive one (1) year terms (each such renewal a
“Renewal
Term”), unless written notice is provided by either party of its
intention not to renew the term of this Agreement no later than ninety (90) days
prior to the end of the Initial Term or then-current term.

     

    12.2             Termination for
Default.  Either party may terminate this Agreement if the
other party violates any covenant, agreement, representation or warranty
contained herein in any material respect or defaults or fails to perform any of
its obligations or agreements hereunder in any material respect, which
violation, default or failure is not cured within thirty (30) days after written
notice  (which notice will describe the alleged breach in reasonable
detail) from the non defaulting party stating its intention to terminate this
Agreement by reason thereof.

     

    12.3             Other Causes of
Termination.  This Agreement will terminate:

     

    (a)           Upon
the mutual written agreement of the parties to terminate this Agreement;
or

     

    (b)           Upon
written notice by either party, immediately, if:

     

    (i)           a
receiver is appointed for the other party or its property;

     

    (ii)          at
any time on or after January 1, 2010, the other party becomes insolvent or
unable to pay its debts as they mature in the ordinary course of
business;

     

    (iii)         the
other party is liquidated or dissolved; or

     

    (iv)         any
proceedings are commenced against the other party under any bankruptcy,
insolvency or debtor’s relief law and such proceedings are not vacated or set
aside within sixty (60) days from the date of commencement thereof.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
          VERSION
WITH CONFIDENTIAL TERMS EXCLUDED 

        

      

    

     

     

    12.4             Effect of
Termination.  Upon the expiration or termination of this
Agreement:

     

    (a)           Suntech
will immediately cease the use of all of the Licensor Technology and
Intellectual Property Rights and will return all Licensor Materials, except that
upon the expiration or termination of this Agreement for any reason, Suntech
will complete the production of any Products of which Suntech has accepted a
Purchase Order as of the effective date of such expiration or termination and
deliver such completed Products and/or Licensor Materials to
Licensor;

     

    (b)           Other
than as necessary for Licensor to exercise its rights under this section, each
party will return or destroy all copies of the Confidential Information within
thirty (30) days after the effective date of the termination and certify in
writing that such party has complied with its obligations hereunder;
and

     

    (c)           NEITHER
LICENSOR NOR SUNTECH SHALL BE LIABLE TO THE OTHER BECAUSE OF SUCH EXPIRATION OR
TERMINATION, FOR COMPENSATION, REIMBURSEMENT OR DAMAGES FOR THE LOSS OF
PROSPECTIVE PROFITS, ANTICIPATED SALES OR GOODWILL, ON ACCOUNT OF ANY
EXPENDITURES, INVESTMENTS OR COMMITMENTS MADE BY EITHER, OR FOR ANY OTHER REASON
WHATSOEVER BASED UPON THE RESULT OF SUCH EXPIRATION OR TERMINATION, EXCEPT THAT
LICENSOR SHALL BE ABLE TO RECOVER SUCH DAMAGES IF THEY ARE THE RESULT OF A
MATERIAL BREACH BY SUNTECH OF ITS OBLIGATION TO DELIVER PRODUCTS UNDER A
PREVIOUSLY ACCEPTED PURCHASE ORDER.

     

    12.5             Survival.  The
parties’ rights and obligations that by their nature continue and survive will
survive any termination or expiration of this Agreement.

     

    13.           Limitation of
Liability.  EXCEPT FOR BOTH PARTIES’ INDEMNIFICATION
OBLIGATIONS UNDER SECTION 14 AND FOR A PARTY’S BREACH OF THE CONFIDENTIALITY
OBLIGATIONS UNDER SECTION 9, NEITHER PARTY SHALL HAVE ANY LIABILITY TO EACH
OTHER OR ANY OTHER THIRD PARTY FOR ANY INDIRECT, INCIDENTAL, SPECIAL OR
CONSEQUENTIAL DAMAGES, INCLUDING, BUT NOT LIMITED TO, LOST PROFITS, LOST DATA,
LOSS OF USE OR COSTS OF PROCUREMENT OF SUBSTITUTE GOODS OR SERVICES, ARISING IN
ANY WAY OUT OF THIS AGREEMENT OR THE TRANSACTION CONTEMPLATED HEREBY, UNDER ANY
CAUSE OF ACTION OR THEORY OF LIABILITY, AND IRRESPECTIVE OF WHETHER SUCH PARTY
HAD ADVANCE NOTICE OF THE POSSIBILITY OF SUCH DAMAGES.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
          VERSION
WITH CONFIDENTIAL TERMS EXCLUDED 

        

      

    

     

     

    14.           Indemnification.

     

    14.1             By
Suntech.  Suntech will defend, indemnify and hold Licensor and
its officers, directors and employees harmless (inclusive of reasonable
attorneys’ fees) from and against any third party claim, suit, action or
proceeding brought against Licensor arising from, relating to or in connection
with:  (a) acts, errors or omissions by or negligence of Suntech, its
employees, officers, agents or representative of any of them in the manufacture,
construction or assembly of the Product; (b) any third party claims founded on
theories of product liability related to the manufacture, construction or
assembly of the Products (up to, and not exceeding an amount equal to $1 million
in aggregate liability for any calendar year of this Agreement); or (c)
infringement by the Products  of any third party Intellectual Property
Right; but in each of clauses (a) through (c) above only to the extent that such
Products are not manufactured in conformity with the Specifications; and (d) the
handling, storage or transport of Product in the manufacturing process, except
where the Specifications dictate the aspect of the handling, storage or
transportation of the Product that is the subject to the applicable claim,
action or proceeding;  and in each of the foregoing clauses (a)
through (d), only to the extent that such claims are not based on Licensor
Intellectual Property.  THE FOREGOING STATES SUNTECH’S SOLE AND
EXCLUSIVE LIABILITY WITH RESPECT TO ANY CLAIM OF INFRINGEMENT OF THIRD PARTY
PROPRIETARY RIGHTS REGARDING PRODUCTS.

     

    14.2             By
Licensor.  Licensor  will defend, indemnify and hold
Suntech and its officers, directors and employees harmless (inclusive of
reasonable attorneys’ fees) from and against any third party claim, suit, action
or proceeding brought against Suntech arising from or relating to: (a) claims
that the Specifications or the Licensor Technology or the Ancillary Technology
infringes or misappropriates any third party Intellectual Property Right; (b)
acts, errors or omissions by or negligence of Licensor, its employees, officers,
agents or representative of any of them in the design of the Products, or (c)
any third party claims founded on theories of product liability related to the
design of the Products (up to, and not exceeding an amount equal to $1 million
in aggregate liability for any calendar year of this Agreement), except to the
extent related to the Suntech Technology. THE FOREGOING STATES LICENSOR’S SOLE
AND EXCLUSIVE LIABILITY WITH RESPECT TO ANY CLAIM OF INFRINGEMENT OF THIRD PARTY
PROPRIETARY RIGHTS REGARDING THE SPECIFICATIONS, THE ANCILLARY TECHNOLOGY OR THE
LICENSOR TECHNOLOGY.

     

    14.3             Indemnification
Procedure.  Each of the parties in its respective capacity as
an indemnitee (“Indemnitee”) hereunder, shall give to the other party
(“Indemnitor”) prompt written notice of any claim that might give rise to
indemnified liabilities under Section 14.1 or 14.2 setting forth a description
of those elements of such claim of which such Indemnitee has knowledge; provided
that any failure to give such notice shall not affect the obligations of the
Indemnitor unless (and then solely to the extent) the ability of the Indemnitor
to provide such indemnification is prejudiced in any material respect
thereby.  The Indemnitor shall have the right at any time during which
such claim is pending to select counsel to defend and control the defense
thereof and settle any claims for which it is responsible for indemnification
hereunder (provided that no Indemnitor will settle any such claim without (i)
the appropriate Indemnitee’s prior written consent which consent shall not be
unreasonably withheld or delayed or (ii) obtaining an unconditional release of
the appropriate Indemnitee from all claims arising out of or in any way relating
to the circumstances involving such claim) so long as in any such event, the
Indemnitor shall have stated in a writing delivered to the Indemnitee that, as
between the Indemnitor and the Indemnitee, the Indemnitor is responsible to the
Indemnitee with respect to such claim to the extent and subject to the
limitations set forth herein; provided further that the Indemnitor shall not be
entitled to control the defense of any claim if in the reasonable opinion of
counsel for the Indemnitee there are one or more defenses available to the
Indemnitee which are not available to the Indemnitor.  To the extent
that the undertaking to indemnify and hold harmless set forth in the preceding
sentence may be unenforceable because it is violative of any law or public
policy, each Indemnitor shall contribute the maximum portion which it is
permitted to pay and satisfy under applicable law, to the payment and
satisfaction of all Indemnified Liabilities incurred by the Indemnitee for any
Indemnitor.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
          VERSION
WITH CONFIDENTIAL TERMS EXCLUDED 

        

      

    

     

     

    15.           General.

     

    15.1             Assignment.  Except
for an assignment by either party to an Affiliate thereof, neither party will
assign this Agreement, in whole or in part, or any obligations or rights
hereunder (except the right to receive payments), except with the prior written
consent of the other party, which consent will not be unreasonably withheld or
delayed, except in the case or a merger or acquisition, in which case consent is
solely the decision of the non-assigning party.  Subject to the
foregoing, this Agreement will inure to the benefit of each of the party’s
successors and permitted assigns.

     

    15.2             Relationship of the
Parties.  The parties to this Agreement are independent
contractors.  There is no relationship of agency, partnership, joint
venture, employment or franchise between the parties.  Neither party
has the authority to bind the other or to incur any obligation on its
behalf.

     

    15.3             Publicity.  Neither
Licensor nor Suntech shall make any public announcement, except that Licensor
may disclose that Suntech is a contract manufacturer for Licensor and Suntech
may disclose the same, and except as the parties may mutually agree in advance
and in writing, as to the existence and details of the matters set forth in this
Agreement (other than to employees, consultants, stockholders (who are bound by
confidentially agreements) or as required by such parties’ disclosure
obligations under the securities laws or regulations of the United States or any
state thereof).

     

    15.4             Waiver.  No
term or provision hereof will be considered waived by either party, and no
breach excused by either party, unless such waiver or consent is in writing
signed on behalf of the party against whom the waiver is asserted.  No
consent by either party to, or waiver of, a breach by either party, whether
express or implied, will constitute a consent to, waiver of, or excuse of any
other, different or subsequent breach by either party.

     

    15.5             Severability.  If
any part of this Agreement is found invalid or unenforceable, that part will be
amended to achieve as nearly as possible the same economic effect as the
original provision and the remainder of this Agreement will remain in full
force.

     

    15.6             Choice of
Law.  This Agreement will be governed by and construed in
accordance with the laws of the United States and the State of California, as
applied to agreements entered into and to be performed entirely within
California between California residents.  The parties agree that the
United Nations Convention on Contracts for the International Sale of Goods
(1980) is specifically excluded from application to this Agreement.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
          VERSION
WITH CONFIDENTIAL TERMS EXCLUDED 

        

      

    

     

     

    15.7             Arbitration.  Except
for claims for emergency or preliminary injunctive relief with respect to breach
of confidentiality provisions herein or breach of any Intellectual Property
Rights hereunder, which may be raised in any court of competent jurisdiction,
any dispute, claim or controversy arising out of or relating to this Agreement,
or the interpretation, making, performance, breach or termination thereof, shall
be finally settled by binding arbitration in San Francisco County, California
under the Rules of Arbitration of JAMS/Endispute, by a single arbitrator
reasonably familiar with the technology and business pertaining to the products
covered by this Agreement, appointed in accordance with said
Rules.  The arbitrator shall permit discovery as provided by the
Federal Rules of Civil Procedure, to the extent deemed appropriate by the
arbitrator, upon request of a party.  The arbitration and all
pleadings and written evidence shall be in the English
language.  Judgment on the award entered by the arbitrator may be
entered in any court having jurisdiction thereof.  Notwithstanding the
foregoing, the parties irrevocably submit to the non-exclusive jurisdiction of
the Superior Court of the State of California, San Francisco County, and the
United States District Court for the Northern District of California in any
action to enforce an arbitration award.

     

    15.8             Notices.  Any
notice provided for or permitted under this Agreement will be in writing and
will be treated as having been given (a) when delivered personally; (b) when
sent by confirmed facsimile or telecopy; (c) one (1) Business Day after being
sent by nationally recognized overnight courier with written verification of
receipt; or (d) three (3) Business Days after being mailed postage prepaid by
certified or registered mail, return receipt requested, to the party to be
notified, at the address set forth below, or at such other place of which the
other party has been notified in accordance with the provisions of this
section.

     

    
      	
              If
      to Licensor:

               

            	
              If
      to Suntech:

            
	
              Open
      Energy Corporation

              514
      Via de la Valle, Suite 200

              Solana
      Beach, CA 92075

              Fax:
      858-794-8811

              Attn.:  General
      Counsel

            	
              Suntech
      America, Inc.

              188
      The Embarcadero

              8th
      Flr.

              San
      Francisco, CA  94105

              Fax:
      415-882-9923

              Attn.:
      Legal Dept.

            

    

    

    15.9             Amendment.  This
Agreement may be amended or supplemented only by a writing that refers
explicitly to this Agreement and that is signed on behalf of both
parties.

     

    15.10           Force
Majeure.  Neither party will be liable for any failure or delay
in performance under this Agreement which is due, in whole or in part, directly
or indirectly, to any contingency, delay, failure, or cause of, any nature
beyond the reasonable control of such party, including, without in any way
limiting the generality of the foregoing, fire, explosion, earthquake, storm,
flood or other weather, unavailability of necessary utilities or raw materials,
strike, lockout, blackout, unavailability of components, activities of a
combination of workmen or other labor difficulties, war, insurrection, riot, act
of God or the public enemy, law, act, order, export control regulation,
proclamation, decree, regulation, ordinance, or instructions of government or
other public authorities, or judgment or decree of a court of competent
jurisdiction (not arising out of breach by such party of this
Agreement).  In the event of the happening of such a cause, the party
whose performance is so affected will give prompt written notice to the other
party, stating the period of time the same is expected to
continue.  Such delay will not be excused under this section for more
than sixty (60) days.

     

    
      
        
        

      

      
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          VERSION
WITH CONFIDENTIAL TERMS EXCLUDED 

        

      

    

     

     

    15.11           Interpretation.  The
section and other headings contained in this Agreement are for reference
purposes only and will not in any way affect the meaning and/or interpretation
of this Agreement.  It is the parties’ intent that this Agreement and
its addenda will prevail over the terms and conditions of any purchase order,
acknowledgment form or other instrument.  In the event of a conflict
between the terms of this Agreement and the terms contained in any addenda to
this Agreement, the terms of the addenda will be controlling.  Addenda
will not be binding until executed by authorized representatives of each
party.

     

    15.12           Counterparts; Fax
Signatures.  This Agreement may be executed in counterparts,
each of which will be deemed an original, but both of which together will
constitute one and the same instrument.  The parties agree that
facsimile signatures of the parties will be binding.

     

    15.13           Entire
Agreement.  This Agreement, including all Exhibits to this
Agreement, constitutes the entire agreement between the parties relating to this
subject matter and supersedes all prior and/or simultaneous representations,
discussions, negotiations and agreements, whether written or oral.

     

    15.14           Controlling
Language.  This Agreement, and the exhibits hereto, are
prepared and executed in the English language only, which language shall be
controlling in all respects.  Any translations of this Agreement or
any exhibit hereto into any other language are for reference only and shall have
no legal or other effect.  Any notice which is required or permitted
to be given by one party to the other under this Agreement will be in the
English language and made in writing.

     

    
      
         

      

      
        15

        
          

        

      

      
         

      

      VERSION
WITH CONFIDENTIAL TERMS EXCLUDED 

    

     

    
 

    IN WITNESS WHEREOF, the parties have
caused this Agreement to be executed by their respective duly authorized
officers as of the date first written above.

     

    
      	
              WUXI
      SUNTECH POWER CO., LTD.

            	 	
              OPEN
      ENERGY CORPORATION

               

            
	
              By:  /s/ Steven Chan 

            	 	
              By:  /s/ David A.
      Field   

            
	
              Name: Steven Chan 

            	 	
              Name: David A. Field

            
	
              Title:   Chief Strategy
Officer 

            	 	
              Title:   President/CEO                                                   

            

    

     

    
      
         

      

      
        16

        
          

        

      

      
         

      

      VERSION
WITH CONFIDENTIAL TERMS EXCLUDED 

    

     

    
 

    Exhibit
A

     

    Products

     

    Solar
membrane products that embody, employ or are produced by any invention that
falls within the claims of U.S. Patent Application Serial No. 10/964,612, which
are designed to be integrated into or affixed to membrane and similar flat
roofing material, and any similar or new generation products.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

      VERSION
WITH CONFIDENTIAL TERMS EXCLUDED 

    

     

    
 

    Exhibit
B

     

    TERRITORY

     

    1.           Suntech
shall be free to sell Products on a worldwide basis directly or through any
distributor it selects, and Suntech shall be responsible for all sales,
marketing and customer service activities related to the Products.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

      VERSION
WITH CONFIDENTIAL TERMS EXCLUDED 

    

     

     

    Exhibit C
– ROYALTIES

     

    (subject
to Section 3.1 of the Agreement)

     

    [***]

    

    All
revenue calculations described above shall be in accordance with Suntech’s
prevailing accounting procedures for its publicly-reported financial statements
filed with the U.S. Securities and Exchange Commission as in effect during the
applicable period(s).

     

     

     

    [***]
Omitted Term

    
      
         

      

      
         

        
          

        

      

      
         

      

      VERSION
WITH CONFIDENTIAL TERMS EXCLUDED 

    

     

    
 

    Exhibit D
– PAYMENT TERMS

     

    [***]

    
       

       

       

      [***]
Omitted TermExhibit 10.41

 

AMENDED AND RESTATED EQUITY PLAN

FOR KEY EMPLOYEES OF

SEALY CORPORATION AND ITS SUBSIDIARIES

 

1.                                       Purpose
of Plan

 

This Amended
and Restated Equity Plan for Key Employees of Sealy Corporation and Its
Subsidiaries (the “Plan”) is designed:

 

(a)                                  to
amend and restate, in its entirety, the 2004 Stock Option Plan for Key
Employees of Sealy Corporation and Its Subsidiaries, dated as of April 6,
2004.

 

(b)                                 to
promote the long term financial interests and growth of Sealy Corporation (the “Company”)
and its Subsidiaries by attracting and retaining management and other personnel
with the training, experience and ability to enable them to make a substantial
contribution to the success of the Company’s business;

 

(c)                                  to
motivate management personnel by means of growth-related incentives to achieve
long range goals; and

 

(d)                                 to
further the alignment of interests of participants with those of the
stockholders of the Company through opportunities for increased stock, or
stock-based ownership in the Company.

 

2.                                       Definitions

 

The following
capitalized terms used in the Plan have the respective meaning set forth in
this Section:

 

(a)                                  “Affiliate”
of any Person means with respect to any Person, any entity directly or
indirectly, through one or more intermediaries, controlling, controlled by or
under common control with such first Person.

 

(b)                                 “Award”
means Stock Option, Stock Appreciation Right, Dividend Equivalent Rights or
Other Stock-Based Award pursuant to the Plan.

 

(c)                                  “Board”
means the board of directors of the Company.

 

(d)                                 “Change
in Control” means (i) the sale or disposition, in one or a series of
related transactions, of all or substantially all of the assets of the Company
to an Unaffiliated Person; (ii) a sale resulting in more than 50% of the
voting stock of the Company being held by an Unaffiliated Person; or (iii) a
merger, consolidation, recapitalization or reorganization of the Company with
or into another Unaffiliated Person; if and
only if any such event listed in clauses (i) through (iii) above
results in the inability of KKR, the Investor or any member or members of the
Investor, to designate or elect a majority of the Board (or the board of
directors of the resulting entity or its parent company).  For purposes of this definition, the term “Unaffiliated
Person” means any Person or Group who is not (x) KKR, the Investor
or any member of the

 

 

Investor, (y) an Affiliate
of KKR, the Investor or any member of the Investor, or (z) an entity in
which KKR, the Investor, or any member of the Investor holds, directly or
indirectly, a majority of the economic interests in such entity.

 

(e)                                  “Code”
means the Internal Revenue Code of 1986, as amended, or any successor thereto.

 

(f)                                    “Committee”
means the Human Resources Committee of the Board (or any sub-committee thereof
meeting the requirements of Section 162(m) of the Code, to the extent
the Company desires to make grants to “covered employees” as defined in Section 162(m) of
the Code).

 

(g)                                 “Common
Stock” or “Share” means the Class A common stock, par value $0.01
per share, of the Company, which may be authorized but unissued, or issued and
reacquired.

 

(h)                                 “Employee”
means a person, including an officer, in the regular employment of the Company
or one of its Subsidiaries who, in the opinion of the Committee, is, or is
expected to have involvement in the management, growth or protection of some
part or all of the business of the Company.

 

(i)                                     “Employment”
refers to (i) a Participant’s employment if the Participant is an employee
of the Company or any of its Affiliates, (ii) a Participant’s services as
a consultant, if the Participant is consultant to the Company or its Affiliates
and (iii) a Participant’s services as an non-employee director, if the
Participant is a non-employee member of the Board.

 

(j)                                     “Exchange
Act” means the Securities Exchange Act of 1934, as amended, or any
successor thereto.

 

(k)                                  “Fair
Market Value” means the price per share of Common Stock (i) if there
is a public market for the Shares on such date, the closing trading price of
the Shares on such stock exchange on which the Shares are principally trading
on the applicable date, or, if there were no sales on such date, on the closest
preceding date on which there were sales of Shares or (ii) if there is no
public market for the Shares on such date, the fair market value of the Shares
as determined in the good faith discretion of the Board.

 

(l)                                     “Grant”
means an award made to a Participant pursuant to the Plan and described in Section 5,
including, without limitation, an award of a Stock Option, Stock Appreciation
Right or Dividend Equivalent Right (as such terms are defined in Section 5),
or any combination of the foregoing.

 

(m)                               “Grant
Agreement” means an agreement between the Company and a Participant that
sets forth the terms, conditions and limitations applicable to a Grant.

 

(n)                                 “Group”
means “group,” as such term is used for purposes of Section 13(d) or
14(d) of the Exchange Act.

 

(o)                                 “Investor”
means Sealy Holding LLC.

 

2

 

(p)                                 “KKR”
shall mean the KKR Millennium Fund L.P.

 

(q)                                 “Participant”
means an Employee, non-employee member of the Board, consultant or other person
having a relationship with the Company or one of its Subsidiaries, to whom one
or more Grants have been made and remain outstanding.

 

(r)                                    “Person”
means “person,” as such term is used for purposes of Section 13(d) or
14(d) of the Exchange Act.

 

(s)                                  “Subsidiary”
means a subsidiary corporation, as defined in Section 424(f) of the
Code (or any successor section thereto).

 

3.                                       Administration
of Plan

 

(a)                                  The
Plan shall be administered by the Committee. 
The Committee may adopt its own rules of procedure, and action of a
majority of the members of the Committee taken at a meeting, or action taken
without a meeting by unanimous written consent, shall constitute action by the
Committee.  The Committee shall have the
power and authority to administer, construe and interpret the Plan, to make rules for
carrying it out and to make changes in such rules.  Any such interpretations, rules, and
administration shall be consistent with the basic purposes of the Plan.

 

(b)                                 The
Committee may delegate to the Chief Executive Officer and to other senior
officers of the Company its duties under the Plan subject to the limits of
applicable law and such other conditions and limitations as the Committee shall
prescribe, except that only the Committee may designate and make Grants
to Participants who are subject to Section 16 of the Exchange Act.

 

(c)                                  The
Committee may employ counsel, consultants, accountants, appraisers, brokers or
other persons.  The Committee, the
Company, and the officers and directors of the Company shall be entitled to
rely upon the advice, opinions or valuations of any such persons.  All actions taken and all interpretations and
determinations made by the Committee in good faith shall be final and binding
upon all Participants, the Company and all other interested persons.  No member of the Committee shall be
personally liable for any action, determination or interpretation made in good
faith with respect to the Plan or the Grants, and all members of the Committee
shall be fully protected by the Company with respect to any such action,
determination or interpretation.

 

4.                                       Eligibility

 

The Committee
may from time to time make Grants under the Plan to such Employees, or other
persons having a relationship with Company or any of its Subsidiaries, and in
such form and having such terms, conditions and limitations as the Committee
may determine.  The terms, conditions and
limitations of each Grant under the Plan shall be set forth in a Grant
Agreement, in a form approved by the Committee, consistent, however, with the
terms of the Plan; provided, however, that such Grant Agreement
shall contain provisions dealing with the treatment of Grants in the event of
the termination of employment, death or disability of a Participant, and 

 

3

 

may also include provisions
concerning the treatment of Grants in the event of a Change in Control of the
Company.

 

5.                                       Grants

 

From time to
time, the Committee will determine the forms and amounts of Grants for
Participants.  Such Grants may take the
following forms in the Committee’s sole discretion:

 

(a)                                  Stock
Options.  These are options to
purchase Common Stock.  At the time of
Grant the Committee shall determine, and shall include in the Grant Agreement
or other Plan rules, the option exercise period, the option exercise price,
vesting requirements, and such other terms, conditions or restrictions on the
grant or exercise of the option as the Committee deems appropriate including,
without limitation, the right to receive dividend equivalent payments on vested
and/or unvested options, except that in no event shall the option exercise
price be less than the Fair Market Value on the date of grant of the Stock
Option.  In addition to other
restrictions contained in the Plan, an option granted under this Section 5(a) may
not be exercised more than 10 years after the date it is granted.  Payment of the option exercise price shall be
made in cash or in shares of Common Stock, or a combination thereof, in
accordance with the terms of the Plan, the Grant Agreement and any applicable
guidelines of the Committee in effect at the time.

 

(b)                                 Stock
Appreciation Rights.  The Committee
may grant Stock Appreciation Rights in tandem with the grant of a Stock Option
or standing alone.  Each Stock
Appreciation Right shall be subject to such terms as the Committee may
determine. A Stock Appreciation Right means the right to transfer and surrender
to the Company all or a portion of a Stock Option (if granted in tandem with a
Stock Option) in exchange for an amount, or otherwise means the right to
receive an amount, equal to the excess of (i) the aggregate Fair Market
Value, as of the date such right is exercised, of the Common Stock underlying
by such Option or portion thereof, over (ii) the aggregate exercise price
of such right, relating to such Common Stock.  
Such amount may be paid in cash or be satisfied with shares, at the
Committee’s discretion.  In no event
shall the Stock Appreciation Right exercise price be less than the Fair Market
Value on the date of grant of the Stock Appreciation Right.

 

(c)                                  Dividend
Equivalent Rights.  The Committee may
grant Dividend Equivalent Rights either alone or in connection with the grant
of an Award.  A Dividend Equivalent Right
means the right to receive a payment in respect of one share of Common Stock
(whether or not subject to an Award) equal to the amount of any dividend paid
in respect of one share of Common Stock held by a shareholder in the
Company.  Each Dividend Equivalent Right
shall be subject to such terms as the Committee may determine.

 

(d)                                 Other
Stock-Based Awards.  The Committee,
in its sole discretion, may grant or sell Awards of Shares, Awards of
restricted shares of Common Stock and Awards that are valued in whole or in
part by reference to, or are otherwise based on the Fair Market Value of,
shares of Common Stock (the “Other Stock-Based Awards”).  Such Other Stock-Based Awards shall be in
such form, and dependent on such conditions, as the Committee shall determine,
including, without limitation, the right to receive, or vest with respect to,
one or more shares of Common Stock (or the equivalent cash value of such
shares) upon the completion of a specified period of 

 

4

 

service, the occurrence of an
event and/or the attainment of performance objectives.  Other Stock-Based Awards may be granted alone
or in addition to any other Stock Awards granted under the Plan.  Subject to the provisions of the Plan, the
Committee shall determine to whom and when Other Stock-Based Awards will be
made, the number of shares of Common Stock to be awarded under (or otherwise
related to) such Other Stock-Based Awards; whether such Other Stock-Based
Awards shall be settled in cash, shares or a combination of cash and shares;
and all other terms and conditions of such Awards (including, without
limitation, the vesting provisions thereof and provisions ensuring that all
shares so awarded and issued shall be fully paid and non-assessable).

 

Notwithstanding anything to the contrary
herein, certain Other Stock-Based Awards granted under this Section 6 may
be granted in a manner which is intended to be deductible by the Company under Section 162(m) of
the Code (or any successor section thereto) (“Performance-Based Awards”).  A Participant’s Performance-Based Award shall
be determined based on the attainment of written performance goals approved by
the Committee for a performance period established by the Committee (i) while
the outcome for that performance period is substantially uncertain and (ii) no
more than 90 days after the commencement of the performance period to
which the performance goal relates or, if less, the number of days which is
equal to 25 percent of the relevant performance period.  The performance goals, which must be
objective, shall be based upon one or more of the following criteria: (i) consolidated
earnings before or after taxes (including earnings before interest, taxes,
depreciation and amortization); (ii) net income; (iii) operating
income; (iv) earnings per Share; (v) book value per Share; (vi) return
on shareholders’ equity; (vii) expense management; (viii) return on
investment; (ix) improvements in capital structure; (x) profitability
of an identifiable business unit or product; (xi) maintenance or improvement of
profit margins; (xii) stock price; (xiii) market share; (xiv) revenues or
sales; (xv) costs; (xvi) cash flow; (xvii) working capital (xviii) return on
assets and (xix) total shareholder return. 
The foregoing criteria may relate to the Company, one or more of its
Affiliates or one or more of its or their divisions or units, or any combination
of the foregoing, and may be applied on an absolute basis and/or be relative to
one or more peer group companies or indices, or any combination thereof, all as
the Committee shall determine.  In
addition, to the degree consistent with Section 162(m) of the Code
(or any successor section thereto), the performance goals may be calculated
without regard to extraordinary items. 
The maximum amount of a Performance-Based Award during a calendar year
to any Participant shall be: (x) with respect to Performance-Based Awards
that are denominated in Shares, 5,000,000
Shares and (y) with respect to Performance-Based Awards that are not
denominated in Shares, $10,000,000.  The
Committee shall determine whether, with respect to a performance period, the
applicable performance goals have been met with respect to a given Participant
and, if they have, shall so certify and ascertain the amount of the applicable
Performance-Based Award.  No
Performance-Based Awards will be paid for such performance period until such
certification is made by the Committee. 
The amount of the Performance-Based Award actually paid to a given
Participant may be less than the amount determined by the applicable
performance goal formula, at the discretion of the Committee.  The amount of the Performance-Based Award
determined by the Committee for a performance period shall be paid to the
Participant at such time as determined by the Committee in its sole discretion
after the end of such performance period; provided, however, that a Participant
may, if and to the extent permitted by the Committee and consistent with the
provisions of Section 162(m) of the Code, elect to defer payment of a
Performance-Based Award.

 

5

 

6.                                       Limitations
and Conditions

 

(a)                                  The
number of Shares available for Grants under this Plan shall be 15,190,000
unless restricted by applicable law, Shares related to Grants that are
forfeited, terminated, canceled or expire unexercised, shall immediately become
available for new Grants.

 

(b)                                 No
Grants shall be made under the Plan beyond ten years after the effective date
of the Plan, but the terms of Grants made on or before the expiration of the
Plan may extend beyond such expiration. 
At the time a Grant is made or amended or the terms or conditions of a
Grant are changed in accordance with the terms of the Plan or the Grant
Agreement, the Committee may provide for limitations or conditions on such
Grant.

 

(c)                                  Nothing
contained herein shall affect the right of the Company or any of its
Subsidiaries to terminate any Participant’s employment at any time or for any
reason.

 

(d)                                 Other
than as specifically provided in the Form of Management Stockholder’s
Agreement attached hereto as Exhibit A,  no
benefit under the Plan shall be subject in any manner to anticipation,
alienation, sale, transfer, assignment, pledge, encumbrance, or charge, and any
attempt to do so shall be void.  No such
benefit shall, prior to receipt thereof by the Participant, be in any manner
liable for or subject to the debts, contracts, liabilities, engagements, or
torts of the Participant.

 

(e)                                  Participants
shall not be, and shall not have any of the rights or privileges of,
stockholders of the Company in respect of any Shares purchasable in connection
with any Grant unless and until certificates representing any such Shares have
been issued by the Company to such Participants (or book entry representing
such shares has been made and such Shares have been deposited with the
appropriate registered book-entry custodian).

 

(f)                                    No
election as to benefits or exercise of any Grant may be made during a
Participant’s lifetime by anyone other than the Participant except by a legal
representative appointed for or by the Participant.

 

(g)                                 Absent
express provisions to the contrary, any Grant under this Plan shall not be
deemed compensation for purposes of computing benefits or contributions under
any retirement plan of the Company or its Subsidiaries and shall not affect any
benefits under any other benefit plan of any kind now or subsequently in effect
under which the availability or amount of benefits is related to level of
compensation.  This Plan is not a “Retirement
Plan” or “Welfare Plan” under the Employee Retirement Income Security Act of
1974, as amended.

 

(h)                                 Unless
the Committee determines otherwise, no benefit or promise under the Plan shall
be secured by any specific assets of the Company or any of its Subsidiaries,
nor shall any assets of the Company or any of its Subsidiaries be designated as
attributable or allocated to the satisfaction of the Company’s obligations under
the Plan.

 

6

 

7.                                       Transfers
and Leaves of Absence

 

For purposes
of the Plan, unless the Committee determines otherwise: (a) a transfer of
a Participant’s employment without an intervening period of separation among
the Company and any Subsidiary (or among any Subsidiaries) shall not be deemed
a termination of employment, and (b) a Participant who is granted in
writing a leave of absence or who is entitled to a statutory leave of absence
shall be deemed to have remained in the employ of the Company (and any
Subsidiary) during such leave of absence.

 

8.                                       Adjustments

 

In the event
of any change in the outstanding Shares by reason of any Share dividend or
split, or in the event of any reorganization, recapitalization, merger,
consolidation, spin-off, combination, combination or transaction or exchange of
Shares or other corporate exchange, or any distribution to shareholders of
Shares other than regular cash dividends, or any transaction similar to the
foregoing, the Committee in its sole discretion and without liability to any
person shall make such substitution or adjustment, if any, as it deems to be
equitable (subject to Section 14(c) below), as to (i) the number
or kind of Shares or other securities issued or reserved for issuance pursuant
to the Plan or pursuant to outstanding Awards, (ii) the maximum number of
Shares for which Options or Stock Appreciation Rights may be granted during a
calendar year to any Participant (iii)  the maximum amount of a Performance-Based
Award that may be granted during a calendar year to any Participant, (iv) the
Option Price or exercise price of any Stock Appreciation Right and/or (v) any
other affected terms of such Awards.

 

9.                                       Merger,
Consolidation, Exchange, Acquisition, Liquidation or Dissolution

 

(a)                                  In
its absolute discretion, acting in good faith, and on such terms and conditions
as it deems appropriate, coincident with or after the grant of any Grant, the
Committee may provide that such Grant cannot be exercised after the
amalgamation, merger or consolidation of the Company with or into another
corporation, the exchange of all or substantially all of the assets of the
Company for the securities of another corporation, the acquisition by another
corporation of 80% or more of the Company’s then outstanding shares of voting
stock or the recapitalization, reorganization, reclassification, liquidation,
dissolution, or other event affecting the capital stock of the Company, and the
Committee shall, on such terms and conditions as it deems appropriate, acting
in good faith, also provide, either by the terms of such Grant or by a
resolution adopted prior to the occurrence of such amalgamation, merger,
consolidation, exchange, acquisition, recapitalization, reorganization, reclassification,
liquidation, dissolution or other event affecting the capital stock of the
Company, that, after written notice to all affected Participants and for a
reasonable period of time prior to such event, such Grant shall be exercisable
as to any Shares subject thereto which is being made unexercisable after any
such event, notwithstanding anything to the contrary herein (but subject to the
provisions of Section 7(b)) and that, upon the occurrence of such event,
such Grant shall terminate and be of no further force or effect; provided,
however, that the Committee may also provide, in its absolute
discretion, that even if the Grant shall remain exercisable after any such
event, from and after such event, any such Grant shall be exercisable only for
the kind and amount of securities and/or other property, or the cash equivalent
thereof (as determined by the Committee in good faith), 

 

7

 

receivable as a result of such event by the
holder of a number of Shares for which such Grant could have been exercised
immediately prior to such event.

 

(b)                                 In
addition to the foregoing provisions of Section 9 and 10(a), in the event
of a Change in Control, (i) if determined by the Committee in the
applicable Award agreement or otherwise at the time of the Change in Control,
any outstanding Awards then held by Participants which are unexercisable or
otherwise unvested or subject to lapse restrictions shall automatically be
deemed exercisable or otherwise vested or no longer subject to lapse
restrictions, as the case may be, as of immediately prior to such Change of
Control and (ii) the Committee may (subject to Section 14(c) below),
but shall not be obligated to, (A) accelerate, vest or cause the
restrictions to lapse with respect to all or any portion of an Award, (B) cancel
such Awards for fair value (as determined in the sole discretion of the
Committee) which, in the case of Options and Stock Appreciation Rights, may
equal the excess, if any, of value of the consideration to be paid in the
Change in Control transaction to holders of the same number of Shares subject
to such Options or Stock Appreciation Rights (or, if no consideration is paid
in any such transaction, the Fair Market Value of the Shares subject to such
Options or Stock Appreciation Rights) over the aggregate exercise price of such
Options or Stock Appreciation Rights, (C) provide for the issuance of
substitute Awards that will substantially preserve the otherwise applicable
terms of any affected Awards previously granted hereunder as determined by the
Committee in its sole discretion or (D) provide that for a period of at
least ten (10) business days prior to the Change in Control, Options and
Stock Appreciation Rights shall be exercisable as to all shares subject thereto
and that upon the occurrence of the Change in Control, such Options and Stock
Appreciation Rights shall terminate and be of no further force and effect.

 

10.                                 No
Right to Employment or Awards

 

The granting of an Award under
the Plan shall impose no obligation on the Company or any Affiliate to continue
the Employment of a Participant and shall not lessen or affect the Company’s or
Affiliate’s right to terminate the Employment of such Participant.  No Participant or other Person shall have any
claim to be granted any Award, and there is no obligation for uniformity of
treatment of Participants, or holders or beneficiaries of Awards.  The terms and conditions of Awards and the
Committee’s determinations and interpretations with respect thereto need not be
the same with respect to each Participant (whether or not such Participants are
similarly situated).

 

11.                                 Successors
and Assigns

 

The Plan shall be binding on
all successors and assigns of the Company and a Participant, including without
limitation, the estate of such Participant and the executor, administrator or
trustee of such estate, or any receiver or trustee in bankruptcy or
representative of the Participants’ creditors.

 

12.                                 Nontransferability
of Awards

 

Unless otherwise determined by
the Committee, an Award shall not be transferable or assignable by the
Participant otherwise than by will or by the laws of descent and
distribution.  

 

8

 

An Award
exercisable after the death of a Participant may be exercised by the legatees,
personal representatives or distributees of the Participant.

 

13.                                 Amendment
and Termination

 

(a)                                  The
Committee shall have the authority to make such amendments to any terms and
conditions applicable to outstanding Grants as are consistent with this Plan
provided that no such action shall modify any Grant in a manner adverse to the
Participant without the Participant’s consent except as such modification is
provided for or contemplated in the terms of the Grant or this Plan (except that
any adjustment that is made pursuant to Section 9 or 10 hereof may be made
by the Committee in good faith).

 

(b)                                 The
Board may amend, suspend or terminate the Plan except that no such action,
other than an action under Section 9 or 10 hereof, may be taken which
would, without stockholder approval, increase the aggregate number of Shares
available for Grants under the Plan, decrease the price of outstanding Grants,
change the requirements relating to the Committee, extend the term of the Plan
or be materially adverse to all Participants with respect to any outstanding
Grants.

 

(c)                                  Without
limiting the generality of the foregoing, to the extent applicable,
notwithstanding anything herein to the contrary, this Plan and Awards issued
hereunder shall be interpreted in accordance with Section 409A of the Code
and Department of Treasury regulations and other interpretative guidance issued
thereunder, including without limitation any such regulations or other guidance
that may be issued after the effective date of this Plan.  Notwithstanding any provision of the Plan to
the contrary, in the event that the Committee determines that any amounts
payable hereunder will be taxable to a Participant under Section 409A of
the Code and related Department of Treasury guidance prior to payment to such
Participant of such amount, the Company may (a) adopt such amendments to
the Plan and Awards and appropriate policies and procedures, including
amendments and policies with retroactive effect, that the Committee determines
necessary or appropriate to preserve the intended tax treatment of the benefits
provided by the Plan and Awards hereunder and/or (b) take such other
actions as the Committee determines necessary or appropriate to avoid the
imposition of an additional tax under Section  409A of the Code.

 

14.                                 Governing
Law; Foreign Grants

 

(a)                                  This
Plan shall be governed by and construed in accordance with the laws of Delaware
applicable therein.

 

(b)                                 The
Committee may make Grants to such persons and identified in Section 4(a) above
who are subject to the laws of jurisdictions other than those of the United
States, which Grants may have terms and conditions that differ from the terms
thereof as provided elsewhere in the Plan for the purpose of complying with
foreign laws or otherwise as deemed to be necessary or desirable by the
Committee.

 

9

 

15.                                 Withholding
Taxes

 

The Company
shall have the right to deduct from any cash payment made under the Plan any
minimum federal, state or local income or other taxes required by law to be
withheld with respect to such payment. 
It shall be a condition to the obligation of the Company to deliver
Shares or cash under any Award where such delivery is a taxable event to the
Participant that the Participant pay to the Company such amount as may be
requested by the Company for the purpose of satisfying any liability for such
minimum withholding taxes.

 

16.                                 Effective
Date and Termination Dates

 

The Plan, as amended and restated, shall be effective on and as of the
date of its approval by the stockholders of the Company in accordance with
applicable laws and shall terminate ten years later, subject to earlier
termination by the Board pursuant to Section 14.

 

17.                                 Choice
of Law

 

The Plan shall be governed by and construed
in accordance with the laws of the State of Delaware.

 

Approved by stockholders on November 6,
2008.

 

10

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