Document:

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                                                                    EXHIBIT 10.1

                      STOCK AND WARRANT PURCHASE AGREEMENT

      This Stock and Warrant Purchase Agreement (this "Agreement") is entered
into as of June 16, 2004 by and between Evergreen Solar, Inc., a Delaware
corporation (the "Company"), and each purchaser identified on the Schedule of
Purchasers (collectively, the "Purchasers") attached hereto as Exhibit A (the
"Schedule of Purchasers").

                                   WITNESSETH:

      WHEREAS, the Company desires to sell to the Purchasers, and the
Purchasers, severally and not jointly, desire to purchase from the Company,
7,662,835 shares of common stock, par value $0.01 per share, of the Company (the
"Common Stock") and warrants to purchase 2,298,851 shares of the Common Stock;
and

      WHEREAS, the parties hereto desire to enter into this Agreement for the
purpose of setting forth certain representations, warranties and covenants made
by each to the other as an inducement to the execution and delivery of this
Agreement and the conditions precedent to the consummation of the transactions
set forth in this Agreement.

      NOW, THEREFORE, in consideration of the premises and of the mutual
provisions, agreements and covenants contained herein and for other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

      SECTION 1. Definitions. As used in this Agreement, the following
capitalized defined terms shall have the following meanings.

      "Action" has the meaning set forth in Section 6(n).

      "Agreement" has the meaning set forth in the Preamble.

      "Affiliate" of a Person shall mean (i) with respect to a Person, any
member of such Person's family (including any child, step child, parent, step
parent, spouse, sibling, mother in law, father in law, son in law, daughter in
law, brother in law or sister in law); (ii) with respect to an entity, any
officer, director, stockholder, partner or investor in such entity or of or in
any affiliate of such entity; and (iii) with respect to a Person or entity, any
Person or entity which directly or indirectly controls, is controlled by, or is
under common control with such Person or entity.

      "Business Day" means a day other than a Saturday, Sunday or other day on
which banking institutions in New York, New York or the New York Stock Exchange
are permitted or required by any applicable law to close.

      "Closing" has the meaning set forth in Section 3.

      "Closing Date" has the meaning set forth in Section 3.

      "Commission" means the Securities and Exchange Commission.
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      "Common Stock" has the meaning set forth in the Recitals.

      "Company" has the meaning set forth in the Recitals.

      "Company Copyrights" has the meaning set forth in Section 6(j).

      "Company Intellectual Property" has the meaning set forth in Section 6(j)

      "Company Marks" has the meaning set forth in Section 6(j).

      "Company Patents" has the meaning set forth in Section 6(j).

      "Company Stock Option Plans" means, collectively, the Company's 1994 Stock
Option Plan, 2000 Stock Option and Incentive Plan, 2000 Employee Stock Purchase
Plan, and any other future equity incentive plans of the Company with similar
objectives which shall be duly authorized and adopted by the board of directors
and shareholders of the Company.

      "Control" (including the terms "controlled by" and "under common control
with") means the possession, directly or indirectly, or as trustee or executor,
of the power to direct or cause the direction of the management policies of a
Person, whether through the ownership of stock, as trustee or executor, by
contract or credit arrangement or otherwise.

      "Copyrights" has the meaning set forth in Section 6(j).

      "Disclosure Documents" has the meaning set forth in Section 6(g).

      "Environmental Laws" has the meaning set forth in Section 6(q).

      "Exchange Act" means the Securities Exchange Act of 1934, as amended, and
the rules and regulations of the Commission thereunder.

      "Evaluation Date" has the meaning set forth in Section 6(y).

      "GAAP" means generally accepted accounting principles.

      "Governmental Authority" has the meaning set forth in Section 6(o).

      "Investment Company Act" means the Investment Company Act of 1940, as
amended.

      "Losses" has the meaning set forth in Section 11(b)(i).

      "Marks" has the meaning set forth in Section 6(j).

      "NASD" means the National Association of Securities Dealers, Inc.

      "Patents" has the meaning set forth in Section 6(j).

      "Permits" has the meaning set forth in Section 6(o).

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      "Person" means an individual, corporation, partnership, association,
trust, any unincorporated organization or any other entity.

      "Placement Agent" has the meaning set forth in Section 6(z).

      "Purchasers" has the meaning set forth in the Preamble.

      "Purchaser Indemnified Parties" has the meaning set forth in Section
11(b)(i).

      "Registration Rights Agreement" has the meaning set forth in Section 6(b).

      "Schedule of Purchasers" has the meaning set for the in the Preamble.

      "Securities" has the meaning set forth in Section 2.

      "Securities Act" means the Securities Act of 1933, as amended, and the
rules and regulations of the Commission thereunder.

      "Series A Agreement" has the meaning set forth in Section 6(cc).

      "Series A Certificate of Designations" has the meaning set forth in
Section 8(b)(vii).

      "Series A Registration Rights Agreement" has the meaning set forth in
Section 6(bb).

      "Series A Stock" has the meaning set forth in Section 8(b)(ix).

      "Series D Consent" shall mean the Waiver and Amendment between the Company
and the Series D Holders in the form attached hereto as Exhibit B.

      "Series D Purchase Agreement" has the meaning set forth in Section 6(bb).

      "Shares" has the meaning set forth in Section 2.

      "Stockholder Approval" has the meaning set forth in Section 9(i).

      "Subsidiary" of a Person means any corporation more than fifty percent
(50%) of whose outstanding voting securities, or any partnership, limited
liability company, joint venture or other entity more than fifty percent (50%)
of whose total equity interest, is directly or indirectly owned by such Person.

      "Third Party Rights" has the meaning set forth in Section 6(j)(iii).

      "Trade Secrets" has the meaning set forth in Section 6(j)(viii).

      "Transaction Documents" has the meaning set forth in Section 6(b).

      "Warrants" has the meaning set forth in Section 2.

      "Warrant Agreement" has the meaning set forth in Section 2.

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      "Warrant Shares" has the meaning set forth in Section 2.

      SECTION 2. Agreement to Purchase and Sell. Subject to the terms and
conditions of this Agreement, each Purchaser severally and not jointly agrees to
purchase at the Closing (as such term is defined in Section 3), and the Company
agrees to issue and sell to such Purchaser at the Closing, for the purchase
price set forth opposite such Purchaser's name on the Schedule of Purchasers (i)
that number of shares (collectively, the "Shares") of the Common Stock set forth
opposite such Purchaser's name on the Schedule of Purchasers, and (ii) a warrant
(collectively, the "Warrants" and, together with the Shares, the "Securities")
to purchase that number of shares of Common Stock set forth opposite such
Purchaser's name on the Schedule of Purchasers at an exercise price of $3.335
per share (the shares of Common Stock issued upon the exercise of the Warrants
being referred to herein as the "Warrant Shares"), pursuant to a Warrant
Agreement in the form attached as Exhibit C hereto (the "Warrant Agreement");
provided, however, that this Agreement shall not be legally binding with respect
to any Purchaser in the event that the aggregate investment in the Securities by
the Purchasers is less than $20 million.

      SECTION 3. Closing. The purchase and sale of the Securities pursuant to
Section 2 (the "Closing") will take place on the date which is three (3)
Business Days immediately after the date hereof at the offices of Goodwin
Procter LLP, Exchange Place, Boston, MA 02109, or at such other place and time
as may be mutually agreed upon by the Company and each Purchaser (the "Closing
Date"). Upon receipt by the Company on the Closing Date of the purchase price
set forth opposite a Purchaser's name on the Schedule of Purchasers by wire
transfer of immediately available funds to an account designated by the Company
in writing, the Company shall issue and deliver to such Purchaser (i) a stock
certificate or certificates representing that number of Shares specified on the
Schedule of Purchasers, in such denominations and registered in such names as
such Purchaser may request, and (ii) Warrants to purchase that number of shares
of Common Stock specified on the Schedule of Purchasers registered in such names
as such Purchaser may request.

      SECTION 4. Transfer Taxes. All transfer taxes, fees and duties under
applicable law incurred in connection with the sale and transfer of the
Securities under this Agreement will be borne and paid by the Company and it
shall promptly reimburse each Purchaser for any such tax, fee or duty which it
may be required to pay under applicable law.

      SECTION 5. Separate Agreements. The Company's agreement with each of the
Purchasers is a separate agreement, and the sale of the Shares to each of the
Purchasers is a separate sale, and no Purchaser shall be responsible in any way
for the performance of the obligations of any other Purchaser under this
Agreement.

      SECTION 6. Representations, Warranties and Covenants of the Company. In
order to induce the Purchasers to enter into this Agreement and consummate the
transactions contemplated hereby, the Company represents and warrants to each
Purchaser as of the date hereof and as of the Closing Date, as if such
representations and warranties had been made on and as of such dates, as
follows:

            (a) Organization; Good Standing; Qualification. The Company is a
corporation duly organized, validly existing and in good standing under the laws
of the State of

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Delaware and has full corporate power and authority to conduct its business as
presently conducted and as proposed to be conducted by it and to enter into and
perform this Agreement and to carry out the transactions contemplated under this
Agreement, the Warrant Agreement, the Series A Agreement, and the Registration
Rights Agreement (as defined below). The Company is duly qualified and in good
standing to do business as a foreign corporation in each jurisdiction in which
the failure to so qualify would have a material adverse effect on its business,
result of operations, prospects, properties or condition (financial or
otherwise) and no proceeding has been instituted in any such jurisdiction,
revoking, limiting or curtailing, or seeking to revoke, limit or curtail, such
power and authority or qualification. The Company has no Subsidiaries (as
defined in Rule 405 under the Securities Act of 1933, as amended) other than
Evergreen Solar Securities Corp.

            (b) Authorization and Noncontravention; Binding Effect. This
Agreement, the Registration Rights Agreement dated as of the date hereof by and
among the Company and the parties thereto attached hereto as Exhibit D (the
"Registration Rights Agreement"), the Warrant Agreement, the Series A Agreement,
and all agreements, documents and instruments executed and delivered by the
Company pursuant hereto and thereto (collectively, the "Transaction Documents")
have been, or will be on or before the Closing, duly executed and delivered by
the Company, and are valid and binding obligations of the Company, enforceable
in accordance with their respective terms, except as enforcement may be limited
by bankruptcy, insolvency, moratorium or other similar laws relating to
creditors' rights generally, and except that the availability of equitable
remedies, including specific performance, is subject to the discretion of the
court before which any proceeding therefor may be brought. The execution,
delivery and performance of the Transaction Documents, the issuance and delivery
of the Securities, and, upon conversion of the Warrants, the issuance and
delivery of the Warrant Shares, have been duly authorized by all necessary
corporate or other action of the Company. The Board of Directors of the Company
has determined, at a duly convened meeting or pursuant to a unanimous written
consent, that the issuance and sale of the Securities, and the consummation of
the transactions contemplated by this Agreement and the other Transaction
Documents (including without limitation the issuance of the Shares and the
Warrant Shares), are in the best interests of the Company.

            (c) Valid Issuance of Common Stock. When issued to and paid for by
the Purchasers in accordance with the terms of this Agreement and the Warrant
Agreement, the Shares, the Warrants and the Warrant Shares will be duly
authorized, validly issued, fully paid and nonassessable, free and clear of all
liens, and the issuance of the Securities and the Warrant Shares will not be
subject to any preemptive or similar rights that have not been waived. The
Company has reserved from its duly authorized capital stock the maximum number
of shares of Common Stock issuable pursuant to this Agreement and the Warrant
Agreement.

            (d) Capitalization. As of the date of this Agreement, the authorized
and outstanding capitalization of the Company consists of (i) a total of
27,227,668 authorized shares of preferred stock, $0.01 par value per share, of
which 26,227,668 shares have been designated Series A Convertible Preferred
Stock, 19,325,556 of which are issued or outstanding, and (ii) a total of
70,000,000 authorized shares of Common Stock, of which 18,627,132 shares were
issued and outstanding as of the close of business on June 15, 2004. All of such
outstanding shares are

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validly issued, fully paid and nonassessable, have been issued in compliance
with all federal and state securities laws, and none of such outstanding shares
was issued in violation of any preemptive rights or similar rights to subscribe
for or purchase securities. In addition to the foregoing, as of June 15, 2004,
warrants to purchase a total of 2,400,000 shares of Common Stock were
outstanding and such shares of Common Stock were reserved for issuance, options
to purchase a total of 5,427,937 shares of Common Stock were outstanding and
such shares of Common Stock are reserved for issuance, and the Company is
authorized to grant up to 10,325,000 additional shares of Common Stock pursuant
to the Company Stock Option Plans. Warrants to purchase a total of 125,000
shares of Common Stock issued to the Placement Agent will be outstanding as of
the Closing Date and such shares of Common Stock will be reserved for issuance.
Except as set forth in this Section 6(d), there are no other outstanding
options, warrants or similar agreements or rights for the purchase from the
Company of any shares of its capital stock or any securities convertible into or
ultimately exchangeable or exercisable for any shares of the Company's capital
stock. Without limiting the foregoing, except pursuant to the Series A
Registration Rights Agreement and the preemptive rights held by the holders of
Series A Stock, no preemptive right, co-sale right, right of first refusal,
registration right, or other similar right exists with respect to the Shares or
the issuance and sale thereof. Assuming the conversion of all outstanding shares
of Series A Stock pursuant to the terms and conditions of the Series A Agreement
and the Series A Certificate of Designations, no further approval or
authorization of any stockholder, the Board of Directors of the Company or other
persons is required for the issuance and sale of the Shares. There are no
stockholders agreements, voting agreements or other similar agreements with
respect to the Common Stock to which the Company is a party or, to the knowledge
of the Company, between or among any of the Company's stockholders, except the
Series A Agreement.

            (e) Defaults. Neither the issuance and sale of the Securities
pursuant to the terms and conditions hereunder nor the execution and delivery of
the Transaction Documents and the performance of the Company's obligations
thereunder will (i) violate or conflict with, result in a breach of or
constitute a default (or constitute an event that, with notice or lapse of time,
would constitute a violation or breach of or a default) under (A) the
certificate of incorporation or bylaws of the Company; (B) any decree, judgment,
order or determination of any court, governmental agency or body, or any
arbitrator having jurisdiction over the Company or any of the Company's assets;
(C) any law, rule or regulation applicable to the Company; or (D) the terms of
any material agreement by which the Company is bound or to which any property of
the Company is subject, or (ii) result in the creation or imposition of any
lien, encumbrance, claim, security interest or restriction whatsoever upon any
of the material properties or assets of the Company or an acceleration of
indebtedness pursuant to any obligation, agreement or condition contained in any
material bond, debenture, note or any other evidence of indebtedness or any
material indenture, mortgage, deed of trust or any other agreement or instrument
to which the Company is a party or by which it is bound or to which any of the
material property or assets of the Company is subject. Neither the sale of the
Securities hereunder nor the performance of the Company's other obligations
under this Agreement will result in the suspension, revocation, impairment,
forfeiture or nonrenewal of any material permit, license, authorization, right
or approval applicable to the Company, its businesses or operations or any of
its assets or properties. No consent, approval, authorization or other order of,
or registration, qualification or filing with, any regulatory body,
administrative agency, or other governmental body in the United States or any
other person is required for the

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execution and delivery of the Transaction Documents and the valid issuance and
sale of the Securities hereunder, other than such as have been made or obtained,
and except for any post-closing securities filings or notifications required to
be made under federal or state securities laws and the Nasdaq National Market
Additional Listing Application. Based in part on the representations of each of
the Purchasers set forth in Section 7 below, the offer and sale of the
Securities to each of the Purchasers will be in compliance with all applicable
federal and state securities laws and the Company has made or will make all
requisite filings and has taken or will take all action necessary to comply,
with such federal and state securities laws.

            (f) General Solicitation. Neither the Company nor any person acting
on behalf of the Company has offered or sold any of the Securities by any form
of general solicitation or general advertising. The Company has offered the
Securities for sale only to the Purchasers and certain other "accredited
investors" within the meaning of Rule 501 under the Securities Act of 1933, as
amended (the "Securities Act").

            (g) SEC Filings. The Company's Annual Report on Form 10-K for the
year ended December 31, 2003, the Company's Quarterly Report on Form 10-Q for
the quarterly period ended March 31, 2004, all Current Reports on Form 8-K filed
by the Company and all other documents, if any, filed by the Company with the
Commission since December 31, 2003 (collectively, the "Disclosure Documents"),
as of the respective dates thereof, do not contain any untrue statements of
material fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein in light of the circumstances under
which they were made not misleading. The Disclosure Documents have been prepared
in compliance with the requirements of the Securities Act or the Exchange Act
and the rules thereunder. The Company has timely made all filings required under
the Exchange Act during the twelve (12) months preceding the date of this
Agreement.

            (h) Financial Statements. The financial statements of the Company
included in each of the Disclosure Documents, including the schedules and notes
thereto, comply in all material respects with the requirements of the Securities
Act or the Exchange Act, as applicable, fairly present, in accordance with GAAP,
the financial condition and results of operations and cash flows of the Company
at the respective dates and for the respective periods indicated, and have been
prepared in accordance with GAAP consistently applied throughout such periods.
The Company maintains and will continue to maintain a standard system of
accounting established and administered in accordance with GAAP and the
applicable requirements of the Exchange Act. The other financial information
contained in the Disclosure Documents has been prepared on a basis consistent
with the financial statements of the Company. Except as set forth in the
Disclosure Documents, the Company has no liabilities, contingent or otherwise,
other than liabilities incurred in the ordinary course of business which, under
GAAP, are not required to be reflected in the financial statements included in
the Disclosure Documents and which, individually or in the aggregate, are not
material to the consolidated business or financial condition of the Company.

            (i) No Material Adverse Change. Since the date of the Company's most
recent audited financial statements contained in the Disclosure Documents, there
has not been (i) any material adverse change in the properties, business,
results of operations, prospects or condition (financial or otherwise) of the
Company and its subsidiaries, taken as a whole (ii) any material adverse event
affecting the Company, (iii) any obligation or liability, direct or contingent,
that is

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material to the Company, incurred by the Company, except obligations incurred in
the ordinary course of business, (iv) any dividend or distribution of any kind
declared, paid or made on the capital stock of the Company, except with respect
to the Series A Stock in accordance with the terms and conditions of the Series
A Agreement and the Series A Certificate of Designations, (v) any loss or damage
(whether or not insured) to the physical property of the Company which has been
sustained which could reasonably be expected to have a material adverse effect
on the properties, business, results of operations, prospects or condition
(financial or otherwise) of the Company or (vi) any change in the Company's
method of accounting.

            (j) Intellectual Property. Schedule 6(j) contains a complete and
accurate list of all material (i) patents, patent applications, patent rights,
and inventions and discoveries and invention disclosures (whether or not
patented) (collectively, "Patents") owned by the Company or otherwise used in
its business ("Company Patents"); (ii) trade names, trade dress, logos,
packaging design, slogans, Internet domain names, registered and unregistered
trademarks and service marks and related registrations and applications for
registration (collectively, "Marks") owned by the Company or otherwise used in
its business ("Company Marks"); and (iii) copyrights in both published and
unpublished works, including without limitation all compilations, databases and
computer programs, manuals and other documentation and all copyright
registrations and applications, and all derivatives, translations, adaptations
and combinations of the above (collectively, "Copyrights") owned by the Company
or otherwise used in and, in either case, material to its business ("Company
Copyrights"). Except as set forth on Schedule 6(j):

            (i) the Company exclusively owns or possesses adequate and
      enforceable rights to use, without any material payment obligation to a
      third party, all Patents, Marks, Copyrights, trade names, information,
      Trade Secrets (as defined below), proprietary rights and processes
      necessary for the operation of the its business (collectively, "Company
      Intellectual Property"), free and clear of all mortgages, pledges,
      charges, liens, equities, security interests, claims or other encumbrances
      or similar dispositions;

            (ii) all Company Patents, Company Marks and Company Copyrights which
      are issued by or registered with, as applicable, the U.S. Patent and
      Trademark Office, the U.S. Copyright Office or in any similar office or
      agency anywhere in the world are currently in compliance with formal legal
      requirements (including without limitation, as applicable, payment of
      filing, examination and maintenance fees, proofs of working or use, timely
      post-registration filing of affidavits of use and incontestability and
      renewal applications) and are valid and enforceable;

            (iii) there are no pending, or, to the Company's knowledge,
      threatened claims against the Company or any of its employees alleging
      that any of the Company Intellectual Property infringes or conflicts with
      the rights of others ("Third Party Rights");

            (iv) to the knowledge of the Company, no Company Intellectual
      Property infringes or conflicts with any Third Party Right;

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            (v) the Company has not received any communications alleging that
      the Company has violated or, by conducting its business in the manner
      currently contemplated, would violate any Third Party Rights or that any
      of the Company Intellectual Property is invalid or unenforceable;

            (vi) no current or former employee or consultant of the Company owns
      any rights in or to any of the Company Intellectual Property;

            (vii) the Company is not aware of any violation or infringement by a
      third party of any of the Company Intellectual Property;

            (viii) the Company has taken reasonable security measures to protect
      the secrecy, confidentiality and value of all know-how, trade secrets,
      confidential or proprietary information, research in progress, algorithms,
      data, designs, processes, formulae, drawings, schematics, blueprints, flow
      charts, models, strategies, prototypes, and techniques (collectively,
      "Trade Secrets") used in its business, including, without limitation,
      requiring all Company employees and consultants and all other persons with
      access to Trade Secrets of the Company to execute a binding
      confidentiality agreement, copies or forms of which have been made
      available to each Purchaser or its counsel and, to the Company's
      knowledge, there has not been any breach by any party to such
      confidentiality agreements;

            (ix) the Company (A) has not granted any other person any option,
      license or other right with respect to the Company Intellectual Property,
      which option, license or other right is currently outstanding, and (B) is
      not bound by or a party to any material options, licenses or agreements of
      any kind (other than standard end-user agreements) with respect to the
      Patents, Marks, Copyrights, trade names, information, Trade Secrets,
      proprietary rights and processes of any other person or entity.

            (k) Contracts. Except as set forth in Schedule 6(k), the Company is
not in violation or default (i) of any provision of its certificate of
incorporation or bylaws, as amended, or (ii) of any instrument, judgment, order,
writ, decree or contract or in the performance of any bond, debenture, note or
other evidence of indebtedness to which it is a party or by which it is bound,
except where such violations or defaults would not, individually or in the
aggregate, have a material adverse affect on the Company's business, results of
operations, properties or condition (financial or otherwise), nor is the
Company, to the Company's knowledge, in violation of any provision of any
federal or state statute, rule or regulation or any law, ordinance or order of
any court or governmental agency or authority applicable to the Company, which
violations would, individually or in the aggregate, have a material adverse
affect on the Company's business, results of operations, properties, prospects
or condition (financial or otherwise).

            (l) Nasdaq Compliance. The Common Stock is registered pursuant to
Section 12(g) of the Exchange Act, and is listed on the Nasdaq National Market,
and the Company has taken no action designed to, or which to its knowledge is
likely to have the effect of, terminating the registration of the Common Stock
under the Exchange Act or delisting the Common Stock from the Nasdaq National
Market nor has the Company received in the past twelve (12) months

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any notification that the Commission or the NASD is contemplating terminating
such registration or listing. The Company currently meets the continuing
eligibility requirements for listing on the Nasdaq National Market.

            (m) Taxes. Except for matters that are not reasonably expected to
have a material adverse effect on the business results of operations, properties
or condition (financial or otherwise) of the Company, the Company has filed all
necessary federal, state and foreign income and franchise tax returns and has
paid or accrued all taxes shown as due thereon, and the Company has no knowledge
of a tax deficiency which has been asserted or threatened against the Company.

            (n) Legal Proceedings. Except as disclosed on Schedule 6(n), there
is no action, suit, inquiry, notice of violation, proceeding, inquiry or
investigation pending or, to the knowledge of the Company, threatened against or
affecting the Company or any of its respective properties before or by any
court, arbitrator, governmental or administrative agency or regulatory authority
(federal, state, county, local or foreign) (collectively, an "Action") which (i)
adversely affects or challenges the legality, validity or enforceability of any
of the Transaction Documents or the issuance of the Securities or (ii) would, if
there were an unfavorable decision, have or reasonably be expected to result in
a material adverse effect on the properties, business, results of operations,
prospects or condition (financial or otherwise) of the Company. Neither the
Company, nor, to the knowledge of the Company, any director or officer thereof,
is or has been the subject of any Action involving a claim of violation of or
liability under federal or state securities laws or a claim of breach of
fiduciary duty. There has not been, and to the knowledge of the Company, there
is not pending or contemplated, any investigation by the Commission involving
the Company or any current or former director or officer of the Company. The
Commission has not issued any stop order or other order suspending the
effectiveness of any registration statement filed by the Company under the
Exchange Act or the Securities Act.

            (o) Governmental Permits, Etc. The Company has all necessary
franchises, licenses, certificates and other authorizations (collectively,
"Permits") from any foreign, federal, state or local government or governmental
agency, department, or body (a "Governmental Authority") that are currently
necessary for the operation of the business of the Company as currently
conducted except where the failure to currently possess could not reasonably be
expected to have a material adverse effect of the properties, business, results
of operations, prospects or condition (financial or otherwise) of the Company.
The Company has not received any notice of proceedings relating to the
revocation or modification of any Permit. No Permit is subject to termination as
a result of the execution of this Agreement or consummation of the transactions
contemplated hereby. The Company is now and has heretofore been in compliance
with all applicable statutes, ordinances, orders, rules and regulations
promulgated by any U.S. federal, state, municipal, non-U.S. or other
governmental authority, which apply to the conduct of its business. The Company
has never entered into or been subject to any judgment, consent decree,
compliance order or administrative order with respect to any aspect of the
business, affairs, properties or assets of the Company or received any request
for information, notice, demand letter, administrative inquiry or formal or
informal complaint or claim from any regulatory agency with respect to any
aspect of the business, affairs, properties or assets of the Company.

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            (p) Disclosure. The representations and warranties made or contained
in the Transaction Documents and all other information provided in writing by
the Company to the Purchasers in connection with the transactions contemplated
hereby (including without limitation the Disclosure Documents), when taken
together, do not and shall not contain any untrue statement of a material fact
and do not and shall not omit to state a material fact required to be stated
herein or therein or necessary in order to make such representations, warranties
or other material not misleading in the light of the circumstances in which they
were made or delivered. To the knowledge of the Company, there is no material
fact directly relating to the assets, liabilities, business, operations, or
condition (financial or other) of the Company that materially adversely affects
the same. Except as disclosed in the Disclosure Documents, no officer or
director of the Company has been: (i) subject to voluntary or involuntary
petition under the federal bankruptcy laws or any state insolvency law or the
appointment of a receiver, fiscal agent or similar officer by a court for his or
her business or property or that of any partnership of which he or she was a
general partner or any corporation or business association of which he or she
was an executive officer; (ii) convicted in a criminal proceeding or named as a
subject of a pending criminal proceeding (excluding traffic violations and other
minor offenses) or been otherwise accused of any act of moral turpitude; (iii)
the subject of any order, judgment, or decree (not subsequently reversed,
suspended or vacated) of any court of competent jurisdiction permanently or
temporarily enjoining him or her from, or otherwise imposing limits or
conditions on his or her ability to engage in any securities, investment
advisory, banking, insurance or other type of business or acting as an officer
or director of a public company; (iv) found by a court of competent jurisdiction
in a civil action or by the Commission or the Commodity Futures Trading
Commission to have violated any federal or state commodities, securities or
unfair trade practices law, which judgment or finding has not been subsequently
reversed, suspended, or vacated; or (v) has engaged in other conduct that would
be required to be disclosed in a prospectus under Item 401(f) of SEC Regulation
S-K.

            (q) Environmental Matters. The Company is, and at all times has
been, in compliance in all material respects with all applicable environmental,
health and safety laws, rules, ordinances, by-laws and regulations, and with all
permits, registrations and approvals required under such laws, rules,
ordinances, by-laws and regulations (collectively, "Environmental Laws"). The
Company is not aware of any fact or circumstance which could involve the Company
in any litigation, or impose upon the Company any material liability, arising
under any Environmental Laws.

            (r) Solvency. The Company has not: (i) made a general assignment for
the benefit of creditors; (ii) filed any voluntary petition in bankruptcy or
suffered the filing of any involuntary petition by its creditors; (iii) suffered
the appointment of a receiver to take possession of all, or substantially all,
of its assets; (iv) suffered the attachment or other judicial seizure of all, or
substantially all, of its assets; (v) admitted in writing its inability to pay
its debts as they come due; or (vi) made an offer of settlement, extension or
composition to its creditors generally.

            (s) No Manipulation of Stock. The Company has not taken and will
not, in violation of applicable law, take, any action designed to or that might
reasonably be expected to cause or result in stabilization or manipulation of
the price of the Common Stock to facilitate the sale or resale of the Shares.

                                       11
<PAGE>
            (t) Company not an "Investment Company". The Company has been
advised of the rules and requirements under the Investment Company Act. The
Company is not, and immediately after receipt of payment for the Shares will not
be, an "investment company" or an entity "controlled" by an "investment company"
within the meaning of the Investment Company Act and shall conduct its business
in a manner so that it will not become subject to the Investment Company Act at
any time.

            (u) Foreign Corrupt Practices. Neither the Company, nor to the
knowledge of the Company, any agent or other person acting on behalf of the
Company, has (i) directly or indirectly, used any corrupt funds for unlawful
contributions, gifts, entertainment or other unlawful expenses related to
foreign or domestic political activity, (ii) made any unlawful payment to
foreign or domestic government officials or employees or to any foreign or
domestic political parties or campaigns from corporate funds, (iii) failed to
disclose fully any contribution made by the Company (or made by any person
acting on its behalf of which the Company is aware) which is in violation of
law, or (iv) violated in any material respect any provision of the Foreign
Corrupt Practices Act of 1977, as amended.

            (v) Accountants. To the Company's knowledge, PricewaterhouseCoopers
LLP, who the Company expects will express their opinion with respect to the
financial statements to be included in the Company's Annual Report on Form 10-K
for the year ended December 31, 2004, are independent accountants as required by
the Securities Act and the rules and regulations promulgated thereunder.

            (w) Insurance. The Company has in full force and effect general
commercial, general liability, product liability, professional liability,
specified director's and officer's liability, workers compensation and
employee's liability, fire and casualty and such other appropriate insurance
policies with insurers of recognized financial responsibility with coverages
customary for similarly situated companies in the same or similar industries and
as required by applicable law. The Company does not have any reason to believe
that it will not be able to renew its existing insurance coverage as and when
such coverage expires or to obtain similar coverage from similar insurers as may
be necessary to continue its business without a significant increase in cost,
except for such increases in cost or decreases in coverage as are likely to be
experienced by similarly situated companies.

            (x) Transactions With Affiliates And Employees. Except as set forth
in the Disclosure Documents, none of the officers or directors of the Company
and, to the knowledge of the Company, none of the employees of the Company is
presently a party to any transaction with the Company (other than for services
as employees, officers and directors), including any contract, agreement or
other arrangement providing for the furnishing of services to or by, providing
for rental of real or personal property to or from, or otherwise requiring
payments to or from any officer, director or such employee or, to the knowledge
of the Company, any entity in which any officer, director, or any such employee
has a substantial interest or is an officer, director, trustee or partner, in
each case in excess of $50,000 other than (i) for payment of salary or
consulting fees for services rendered, (ii) reimbursement for expenses incurred
on behalf of the Company and (iii) for other employee benefits, including stock
option agreements under any stock option plan of the Company.

                                       12
<PAGE>
            (y) Internal Accounting Controls. The Company maintains a system of
internal accounting controls sufficient to provide reasonable assurance that (i)
transactions are executed in accordance with management's general or specific
authorizations, (ii) transactions are recorded as necessary to permit
preparation of financial statements in conformity with GAAP and to maintain
asset accountability, (iii) access to assets is permitted only in accordance
with management's general or specific authorization, and (iv) the recorded
accountability for assets is compared with the existing assets at reasonable
intervals and appropriate action is taken with respect to any differences. The
Company has established disclosure controls and procedures (as defined in
Exchange Act Rules 13a-14 and 15d-14) for the Company and designed such
disclosure controls and procedures to ensure that material information relating
to the Company is made known to the certifying officers by others within those
entities, particularly during the period in which the Company's Form 10-K or
10-Q, as the case may be, is being prepared. The Company's certifying officers
evaluated the effectiveness of the Company's controls and procedures as of a
date prior to the filing date of the Form 10-Q for the quarter ended March 31,
2004 (such date, the "Evaluation Date"). The Company presented in its Form 10-Q
for the quarter ended March 31, 2004 the conclusions of the certifying officers
about the effectiveness of the disclosure controls and procedures based on their
evaluations as of the Evaluation Date. Since the Evaluation Date, there have
been no significant changes in the Company's internal controls (as such term is
defined in Item 307(b) of Regulation S-K under the Exchange Act) or, to the
Company's knowledge, in other factors that could significantly affect the
Company's internal controls.

            (z) Certain Fees. No brokerage or finder's fees or commissions are
or will be payable by the Company to any broker, financial advisor or
consultant, finder, placement agent, investment banker, bank or other Person
with respect to the transactions contemplated by this Agreement other than the
fees due to CRT Capital Group LLC (the "Placement Agent"). The Purchasers shall
have no obligation with respect to any fees payable to the Placement Agent, or
with respect to any claims made by or on behalf of other persons for fees of a
type contemplated in this Section 6(z) based on any agreement or arrangement
with the Company that may be due in connection with the transactions
contemplated by this Agreement.

            (aa) No Integrated Offering. Neither the Company, nor any of its
affiliates, nor any person acting on its or their behalf has, directly or
indirectly, made any offers or sales of any security or solicited any offers to
buy any security, under circumstances that would cause this offering of the
Securities to be integrated with prior offerings by the Company for purposes of
the Securities Act or any applicable shareholder approval provisions, including,
without limitation, under the rules and regulations of any exchange or automated
quotation system on which any of the securities of the Company are listed or
designated. The Company shall not sell, offer for sale or solicit offers to buy
or otherwise negotiate in respect of any security (as defined in Section 2 of
the Securities Act) that would be integrated with the offer or sale of the
Securities in a manner that would require the registration under the Securities
Act of the sale of the Securities to the Purchasers or that would be integrated
with the offer or sale of the Securities for purposes of the rules and
regulations of the Nasdaq National Market.

            (bb) Registration Rights. Except pursuant to (i) the Registration
Rights Agreement, (ii) that certain Series D Preferred Stock Purchase Agreement
dated as of December 28, 1999, by and among the Company and the parties thereto
(the "Series D Purchase

                                       13
<PAGE>
Agreement"), and (iii) that certain Registration Rights Agreement dated as of
May 15, 2003, by and among the Company and the parties thereto (the "Series A
Registration Rights Agreement"), no person has any right to cause the Company to
effect the registration under the Securities Act of any securities of the
Company. The Company is eligible to register the Shares and the Warrant Shares
for resale by the Purchasers using Form S-3 promulgated under the Securities
Act. Such registration statement(s) covering the resale of all of the Shares and
the Warrant Shares shall not violate or conflict with any registration rights
granted by the Company, and no stockholders of the Company shall have any
incidental or "piggy-back" rights with respect to such registration
statement(s).

            (cc) Conversion, Consent, Voting and Lock-Up Agreement. The Company
has entered into that certain Conversion, Consent, Voting and Lock-Up Agreement
dated as of the date hereof by and among the Company and the other parties
thereto attached as Exhibit E hereto (the "Series A Agreement") with respect to
the conversion of the Series A Stock, the Stockholder Approval, if necessary,
and certain other matters.

            (dd) Series D Waiver and Amendment. The Company has entered the
Series D Consent with respect to the termination of certain registration rights
under the Series D Purchase Agreement.

      SECTION 7. Representations and Warranties of the Purchasers. Each
Purchaser (severally and not jointly) represents and warrants to the Company, as
of the date hereof and as of the Closing Date, as if such representations and
warranties had been made on and as of such dates, as follows:

            (a) Authorization. Such Purchaser has the capacity to enter into
this Agreement and to purchase the Securities from the Company pursuant to the
terms and conditions of this Agreement. This Agreement is a legal, valid and
binding agreement of the Purchaser enforceable against the Purchaser in
accordance with its terms, except as enforcement may be limited by bankruptcy,
insolvency, moratorium or other similar laws relating to creditors' rights
generally and except that the availability of equitable remedies, including
specific performance, is subject to the discretion of the court before which any
proceeding therefor may be brought. If such Purchaser is a corporation, limited
liability company, partnership or other entity, such Purchaser has taken, or
prior to the Closing, will have taken, all corporate, limited liability company,
partnership or other action (as applicable) required to authorize the execution
and delivery of this Agreement and the performance of its obligations hereunder.

            (b) Reliance Upon Purchaser's Representations. Such Purchaser
understands that the issuance of the Securities hereunder has not been
registered under the Securities Act, based on the exemption from registration
provided by Section 4(2) of the Securities Act and Regulation D thereunder, and
that the Company's reliance on such exemption with respect to the issuance of
the Securities depends in part on such Purchaser's representations and
warranties hereunder.

            (c) Purchase Entirely for Own Account. Such Purchaser is acquiring
the Securities for its own account (or for an account over which it exercises
investment discretion) for investment purposes and not with a view to the
distribution thereof within the meaning of the

                                       14
<PAGE>
Securities Act, except pursuant to sales that are registered under the
Securities Act or are exempt from the registration requirements of the
Securities Act; provided, however, that, in making such representation, such
Purchaser does not agree to hold the Securities for any minimum or specific term
and reserves the right to sell, transfer or otherwise dispose of the Securities
at any time in accordance with the provisions of this Agreement and with Federal
and state securities laws applicable to such sale, transfer or disposition.

            (d) Restricted Securities. Such Purchaser understands that the
Shares and the Warrant Shares constitute "restricted securities" within the
meaning of Rule 144 under the Securities Act and may not be sold, pledged or
otherwise disposed of unless they are subsequently registered under the
Securities Act and applicable state securities laws or unless an exemption from
registration thereunder is available.

            (e) Accredited Investor. Such Purchaser is an "accredited investor"
within the meaning of Rule 501(a) under the Securities Act, who by reason of
such Purchaser's business and financial experience has such knowledge and
experience in financial and business matters that such Purchaser is capable of
evaluating the merits and risks of an investment in the Securities.

            (f) No Governmental Approval of Issuance of Shares. Such Purchaser
understands that no federal or state or other governmental agency has passed
upon or made any recommendation or endorsement with respect to the Securities.

            (g) SEC Filings. Such Purchaser acknowledges that the Company may be
required to file this Agreement with the Commission under the Securities Act and
the rules thereunder and/or the Exchange Act and the rules thereunder, and to
describe the transactions contemplated by this Agreement in such filing, and
subsequent filings, and such Purchaser hereby consents to such filing; provided,
that the Company shall provide each Purchaser with a reasonable opportunity to
review and comment on any such filing.

            (h) Short Sales. To such Purchaser's knowledge, neither such
Purchaser, nor any of its affiliates, is presently the record or beneficial
owner of a short position in the Common Stock.

            (i) Receipt of Information. Such Purchaser has had an opportunity to
ask questions and receive answers from the Company regarding the terms and
conditions of the issuance and sale of the Securities and the business,
properties, prospects and financial condition of the Company and to obtain any
additional information requested and has received and considered all information
it deems relevant to make an informed decision to purchase the Shares.

            (j) Legends. Such Purchaser understands that any certificates
evidencing the Shares will bear substantially the following legend:

      "THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
      UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR UNDER THE APPLICABLE
      SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION, AND MAY NOT BE SOLD,

                                       15
<PAGE>
      ASSIGNED, TRANSFERRED, PLEDGED OR OTHERWISE DISPOSED OF EXCEPT IN
      COMPLIANCE WITH THE REQUIREMENTS OF SUCH ACT AND THE APPLICABLE SECURITIES
      LAWS OF ANY STATE OR OTHER JURISDICTION."

Certificates evidencing the Shares or the Warrant Shares shall not contain
any legend (i) following any sale of such Shares or Warrant Shares, as
applicable, pursuant to Rule 144 or pursuant to an effective registration
statement, as certified by a selling Purchaser to the Company, (ii) if
such Shares or Warrant Shares, as applicable, are eligible for sale under
Rule 144(k), or (iii) if such legend is not required under applicable
requirements of the Securities Act (including judicial interpretations and
pronouncements issued by the staff of the Commission). The Company agrees
that at such time as such legend is no longer required under this Section
7(l), the Company shall cause its counsel to promptly issue a legal
opinion addressed to the Company's transfer agent if required by the
Company's transfer agent to effect the removal of the legend hereunder as
and when any Purchaser so requests. The Company agrees that at such time
as such legend is no longer required under this Section 7(l), it will,
promptly following the delivery by a Purchaser to the Company or the
Company's transfer agent of a certificate representing Shares or Warrant
Shares issued with a restrictive legend, deliver or cause to be delivered
to such Purchaser a certificate representing such Shares or Warrant Shares
that is free from all restrictive and other legends.

      SECTION 8. Conditions to Closing.

            (a) Conditions to the Obligations of the Company. The obligations
hereunder of the Company to consummate the transactions contemplated by this
Agreement with respect to each Purchaser are subject to the fulfillment, prior
to or at the Closing, of the following conditions precedent:

            (i) the accuracy in all material respects of the representations and
      warranties of such Purchaser hereunder as of the date hereof and as of the
      Closing Date, as the case may be, as if such representations and
      warranties had been made on and as of such dates;

            (ii) the performance by such Purchaser of its obligations hereunder
      that are required to be performed at or prior to the Closing;

            (iii) the execution and delivery of the Registration Rights
      Agreement by such Purchaser, which Registration Rights Agreement shall,
      upon execution thereof by the Company, be in full force and effect;

            (iv) the execution and delivery of the Warrant Agreement by such
      Purchaser, which Warrant Agreement shall, upon execution thereof by the
      Company, be in full force and effect;

            (v) the execution and delivery of this Agreement by such Purchaser,
      which Agreement shall, upon execution thereof by the Company, be in full
      force and effect; and

                                       16
<PAGE>
            (vi) no action or proceeding by or before any court, administrative
      body or governmental agency shall have been instituted or threatened by a
      third party which seeks to enjoin, restrain or prohibit, or might result
      in damages in respect of, this Agreement or consummation of the
      transactions contemplated by this Agreement.

            (b) Conditions to the Obligations of the Purchasers. The obligations
hereunder of each Purchaser to consummate the transactions contemplated by this
Agreement with respect to such Purchaser are subject to the fulfillment, prior
to or at the Closing, of the following conditions precedent:

            (i) the accuracy in all material respects of the representations and
      warranties of the Company hereunder as of the date hereof and as of the
      Closing Date, as the case may be, as if such representations and
      warranties had been made on and as of such dates;

            (ii) the performance by the Company of its obligations hereunder
      that are required to be performed at or prior to the Closing;

            (iii) the execution and delivery of the Registration Rights
      Agreement by the Company, which Registration Rights Agreement shall
      thereupon be in full force and effect;

            (iv) the execution and delivery of the Warrant Agreement by the
      Company, which Warrant Agreement shall thereupon be in full force and
      effect;

            (v) the receipt by each Purchaser of a standard legal opinion of
      counsel to the Company dated as of the Closing Date as to the matters set
      forth in Sections 6(a), (b), (c) and (n) and as to exemption from the
      registration requirements of the Securities Act of the sale of the Shares
      and the Warrant Shares;

            (vi) no action or proceeding by or before any court, administrative
      body or governmental agency shall have been instituted or threatened by a
      third party which seeks to enjoin, restrain or prohibit, or might result
      in damages in respect of, this Agreement or consummation of the
      transactions contemplated by this Agreement;

            (vii) all shares of Series A convertible preferred stock of the
      Company, par value $0.01 per share (the "Series A Stock"), shall have been
      converted into shares of Common Stock at or prior to the Closing pursuant
      to the terms and conditions set forth in that certain Certificate of the
      Powers, Designations, Preferences and Rights of the Series A Stock (the
      "Series A Certificate of Designations"), no shares of Series A Stock shall
      be issued and outstanding immediately following the Closing, and the
      Company shall have provided reasonable evidence thereof to each Purchaser
      at the Closing;

            (viii) all holders of Series A Stock shall have executed and
      delivered the Series A Agreement;

            (ix) the Series D Consent shall have been executed and delivered by
      a sufficient number of Series D Holders so that it shall have become
      effective;

                                       17
<PAGE>
            (x) each Purchaser shall have received a certificate executed by an
      authorized officer of the Company confirming that the conditions set forth
      in Sections 8(b)(i), (ii) and (vi) have been duly satisfied; and

            (xi) the aggregate purchase price to be tendered at the Closing by
      all of the Purchasers for the Securities shall be at least $20 million.

      SECTION 9. Affirmative Covenants of the Company. The Company hereby
covenants and agrees with the Purchasers as follows:

            (a) Conduct of the Company. Between the date hereof and the Closing
Date, the Company will:

            (i) preserve and maintain in full force and effect its existence and
      good standing under the laws of its jurisdiction of formation or
      organization;

            (ii) preserve and maintain in full force and effect all material
      rights, privileges, qualifications, applications, licenses and franchises
      necessary in the normal conduct of its business;

            (iii) use its best efforts to preserve its business organization;

            (iv) conduct its business in the ordinary course in accordance with
      sound business practices and keep its properties in good working order and
      condition (normal wear and tear excepted);

            (v) take all reasonable actions to protect and maintain the Company
      Intellectual Property, including, without limitation, prosecuting all
      pending applications for Patents or registration of Trademarks and
      Copyrights and maintaining, to the extent permitted by law, each Patent or
      registration owned by the Company;

            (vi) comply in all material respects with all applicable laws, rules
      and regulations and with the directions of any Governmental Authority
      having jurisdiction over the Company or its business or property, and
      shall not take any action designed to or that might reasonably be expected
      to cause or result in unlawful manipulation of the price of the Common
      Stock to facilitate the sale or resale of the Shares, the Warrants or the
      Warrant Shares;

            (vii) file or cause to be filed in a timely manner all reports,
      applications, estimates and licenses that shall be required by a
      Governmental Authority;

            (viii) conduct its business in a manner such that the
      representations and warranties of the Company contained in Section 6 shall
      continue to be true and correct in all material respects on and as of the
      Closing Date as if made on and as of the Closing Date;

            (ix) use its best efforts to cause the closing conditions contained
      in Section 8(a) to be satisfied on or before the Closing Date; and

                                       18
<PAGE>
            (x) not issue, deliver, sell or authorize, or propose the issuance,
      delivery, sale or purchase of, any additional shares of capital stock,
      stock equivalents or any other security of the Company, other than (i) the
      issuance of Common Stock pursuant to the exercise of any warrants or
      options outstanding as of the date and (ii) the issuance of options to
      purchase shares of Common Stock issued under the Company Stock Option
      Plans in an amount not to exceed 500,000 in the aggregate.

            (b) Nasdaq Listing. The Company shall comply with all listing and
maintenance requirements of the NASD with respect to the issuance of the Shares
and the Warrant Shares and the listing thereof on the Nasdaq National Market.
The Company shall use its reasonable best efforts to maintain the listing of the
Common Stock on the Nasdaq Stock Market, including, without limitation, (i)
taking all actions reasonably related to maintaining Nasdaq Stock Market listing
standards, and (ii) refraining from taking actions reasonably expected to cause
the Company to fail to meet Nasdaq Stock Market listing standards. Between the
date hereof and the Closing Date, the Company shall provide the Purchasers
copies of all correspondence between the Company and the Nasdaq Stock Market
promptly upon receipt thereof.

            (c) Reservation of Common Stock. The Company shall at all times
reserve and keep available out of its authorized shares of Common Stock, solely
for the purpose of the issuance and delivery of the Shares and the issuance and
delivery of the Warrant Shares upon the exercise of the Warrants, the maximum
number of shares of Common Stock that may be issuable or deliverable thereupon.

            (d) Restrictions on Public Sale of Securities. Except as
contemplated in the Registration Rights Agreement, the Company agrees (i) not to
effect a public offering or distribution of any equity securities of the Company
or securities convertible into or exchangeable or exercisable for equity
securities of the Company, and (ii) not to register any shares of equity
securities of the Company or securities convertible into or exchangeable or
exercisable for equity securities of the Company (except pursuant to
registration on Form S-8 or any successor thereto) during the period beginning
on the date hereof and ending on the earlier to occur of the termination of this
Agreement or the date on which a registration statement covering the Shares and
the Warrant Shares pursuant to the terms and conditions of the Registration
Rights Agreement has been declared effective by the Commission; provided, that
the foregoing restrictions shall have no effect on the Company's registration
statement on Form S-3 filed on June 13, 2003, as amended on July 16, 2003.

            (e) Securities Law Filings. For so long as the Purchasers and their
respective Affiliates in the aggregate hold at least 2% of the outstanding
shares of Common Stock (assuming, for purposes of making such determination,
that all of the Warrants have been exercised in full), the Company agrees to
file with the Commission in a timely manner all reports and other filings
required of the Company under the Securities Act and the Exchange Act.

            (f) Form S-3 Eligibility. The Company hereby covenants and agrees to
use its best efforts to maintain its eligibility to make filings with the
Commission on Form S-3 until one or more registration statements covering the
resale of all of the Shares and the Warrant

                                       19
<PAGE>
Shares shall have been filed with, and declared effective by, the Commission
pursuant to the terms and conditions of the Registration Rights Agreement.

            (g) Public Statements. The Company shall issue a press release not
later than 9:00 a.m. Eastern Time on the first Business Day following the date
of this Agreement disclosing the material terms of this Agreement and the other
Transaction Documents and the transactions contemplated hereby and thereby,
which press release shall be followed by the filing of a Form 8-K, including as
exhibits thereto this Agreement and the other Transaction Documents, with the
Commission not later than the close of business on the second Business Day
following the Closing and to make such other filings and notices in the manner
and time required by the Commission. Following the issuance of the press release
and the filing of a Form 8-K in accordance with this Section 9(g), no Purchaser
will possess any material non-public information concerning the Company provided
by the Company or its agents or counsel. The Company acknowledges that each
Purchaser is relying on the representations, acknowledgements and agreements
made by the Company in this Section 9(g) and elsewhere in this Agreement in
making trading and other decisions concerning the Company's securities. The
Company agrees that it will not at any time following the date hereof disclose
material non-public information to any Purchaser without first receiving such
Purchaser's written consent to such disclosure. The Company and the Placement
Agent shall consult with each other in issuing any press releases with respect
to the transactions contemplated hereby, including but not limited to the press
release referenced in the preceding sentence, and neither the Company nor the
Placement Agent shall issue any such press release or otherwise make any public
statement regarding this Agreement or the transactions contemplated hereby
without the prior consent of the other party, provided that each Purchaser shall
have a reasonable opportunity to review and comment on any such press release or
Form 8-K prior to the issuance or filing thereof. Notwithstanding the foregoing,
the Company shall not publicly disclose the name of any Purchaser, or include
the name of any Purchaser in any filing with the Commission, without the prior
written consent of such Purchaser, except (i) as required by the Securities Act
in connection with the registration statement(s) contemplated by the
Registration Rights Agreement and (ii) to the extent that such disclosure is
required by applicable laws, rules or regulations, in which case the Company
shall provide such Purchaser with prior written notice of such disclosure.

            (h) Use of Proceeds. The Company shall use the net proceeds from the
sale of the Securities in the ordinary course of its business and consistent
with past practice; provided, however, that the Company shall not use such
proceeds (i) to repurchase or redeem any equity securities issued by the
Company, (ii) to pay any dividend or make any distribution on any such
securities, or (iii) to repay any loan made to or incurred by any employee or
Affiliate of the Company.

            (i) Stockholder Approval. If necessary, the Company shall use its
best efforts to obtain stockholder approval pursuant to Rule 4350(i) of the
Marketplace Rules of the NASD (the "Stockholder Approval") for the issuance of
the Warrant Shares (which approval shall be effected in a manner that complies
with the rules and regulations of the Nasdaq National Market) at the next
meeting of the Company's stockholders duly called and held, or any continuance
thereof, whether by adjournment, postponement or otherwise, and shall cause such
meeting to be duly called and held as soon as reasonably practicable after the
date hereof. At such stockholders meeting and in the proxy statement prepared in
connection with such stockholders meeting, the Board of Directors

                                       20
<PAGE>
of the Company shall recommend approval by the stockholder of the issuance of
the Securities and all other matters related thereto which are submitted for
stockholder approval. The Company shall provide Goodwin Procter LLP with an
adequate and appropriate opportunity to review and comment on such proxy
statement and each amendment thereto prior to filing with the Commission. If
such stockholder approval if not obtained at the next stockholders meeting, the
Company shall cause additional stockholder meetings to be duly called and held
every six (6) months thereafter until such approval is effective.

      SECTION 10. Termination.

            (a) Termination. This Agreement may be terminated prior to the
Closing as follows:

            (i) at any time on or prior to the Closing Date, by mutual written
      consent of the Company and each Purchaser;

            (ii) at the election of the Company or the Purchasers by written
      notice to the other parties hereto after 5:00 p.m., New York time, on June
      25, 2004, if the Closing shall not have occurred on or prior to such date,
      unless such date is extended by the mutual written consent of the Company
      and each Purchaser; provided, however, that the right to terminate this
      Agreement under this Section 10(a)(ii) shall not be available to any party
      whose breach of any representation, warranty, covenant or agreement under
      this Agreement has been the cause of, or resulted in, the failure of the
      Closing to occur on or before such date;

            (iii) at the election of the Company with respect to a Purchaser, if
      there has been a material breach of any representation, warranty, covenant
      or agreement on the part of such Purchaser contained in this Agreement,
      which breach has not been cured within fifteen (15) Business Days of
      notice to such Purchaser of such breach; or

            (iv) at the election of any Purchaser, if there has been a material
      breach of any representation, warranty, covenant or agreement on the part
      of the Company contained in this Agreement, which breach has not been
      cured within fifteen (15) Business Days of notice to the Company of such
      breach.

      If this Agreement so terminates, it shall become null and void and have no
further force or effect, except as provided in Section 11(b) below.

            (b) Survival. If this Agreement is terminated and the transactions
contemplated hereby are not consummated as described above, this Agreement shall
become void and of no further force and effect, except for the provisions of
Section 11(b); provided, however, that (i) none of the parties hereto shall have
any liability in respect of a termination of this Agreement pursuant to Section
10(a)(i) or (ii), and (ii) nothing shall relieve any of the parties from
liability for actual damages resulting from a termination of this Agreement
pursuant to Section 10(a)(iii) or (iv); and provided, further, that none of the
parties hereto shall have any liability for speculative, indirect, unforeseeable
or consequential damages or lost profits resulting from any legal action
relating to any termination of this Agreement.

                                       21
<PAGE>
      SECTION 11. Survival of Representations, Warranties and Covenants;
Indemnification.

            (a) Survival of Representations, Warranties and Covenants. All of
the representations and warranties made herein shall survive the execution and
delivery of this Agreement until twenty-four (24) months following the Closing
Date, except for (a) Sections 6(a), 6(b), 6(d), 6(z) and 6(aa), which
representations and warranties shall survive until the third anniversary of the
Closing Date, and (b) Section 6(m), which shall survive until the later to occur
of (i) the lapse of the statute of limitations with respect to the assessment of
any tax to which such representation and warranty relates (including any
extensions or waivers thereof) and (ii) sixty (60) days after the final
administrative or judicial determination of the taxes to which such
representation and warranty relates, and no claim with respect to Section 6(m)
may be asserted thereafter with the exception of claims arising out of any fact,
circumstance, action or proceeding to which the party asserting such claim shall
have given notice to the other parties to this Agreement prior to the
termination of such period of reasonable belief that a tax liability will
subsequently arise therefrom. Except as otherwise provided in this Agreement,
all such representations, warranties, covenants and agreements shall inure to
the benefit of the parties (subject to Section 11(b) below) and their respective
successors and assigns and to their transferees of the Securities.

            (b) Indemnification.

            (i) The Company agrees to defend, indemnify and hold harmless each
      Purchaser, its respective subsidiaries, their respective Affiliates and
      direct and indirect partners (including partners of partners and
      stockholders and members of partners), members, stockholders, directors,
      officers, employees and agents and each person who controls any of them
      within the meaning of Section 15 of the Securities Act or Section 20 of
      the Exchange Act (collectively, the "Purchaser Indemnified Parties" and
      each a "Purchaser Indemnified Party"), harmless from and against any and
      all liabilities, obligations, losses, damages, amounts paid in settlement,
      penalties, actions, judgments, fines, suits, claims, costs, attorneys'
      fees, expenses and disbursements, as the same are incurred, of any kind or
      nature (whether or not arising out of third-party claims and including all
      amounts paid in investigation, defense or settlement of the foregoing and
      consequential damages) ("Losses") which may be sustained or suffered by
      any such Purchaser Indemnified Party in any manner based upon, relating to
      or arising out of (a) any untrue representation, misstatement, material
      omission, breach of warranty or failure to perform any covenants or
      agreement by such Company contained herein or in any Transaction Document
      or (b) any action instituted against Purchaser Indemnified Party by any
      stockholder of the Company who is not an Affiliate of such Purchaser
      Indemnified Party, with respect to any of the transactions contemplated by
      the Transaction Documents (unless such action is based upon a breach of
      such Purchaser Indemnified Party's representation, warranties or covenants
      under the Transaction Documents or any agreements or understandings such
      Purchaser Indemnified Party may have with any such stockholder or any
      violations by such Purchaser Indemnified Party of state or federal
      securities laws or any conduct by such Investor which constitutes fraud,
      gross negligence, willful misconduct or malfeasance). The Company will
      also advance expenses as incurred to the fullest extent permitted under
      applicable law; provided, however, that the Purchaser Indemnified Party
      provides an undertaking to repay such

                                       22
<PAGE>
      advances to Company if it is ultimately determined that such Indemnified
      Party is not entitled to indemnification. The Purchaser Indemnified Party
      and the Company will cooperate in the defense of any such matter.

            (ii) A Purchaser Indemnified Party shall give written notice of a
      claim for indemnification under this Section 11 to the Company promptly
      after receipt of any written claim by any third party and in any event not
      later than twenty (20) Business Days after receipt of any such written
      claim (or not later than ten (10) Business Days after the receipt of any
      such written claim in the event such written claim is in the form of a
      formal complaint filed with a court of competent jurisdiction and served
      on such Purchaser Indemnified Party), specifying in reasonable detail the
      amount, nature and source of the claim, and including therewith copies of
      any notices or other documents received from third parties with respect to
      such claim; provided, however, that failure to give such notice shall not
      limit the right of a Purchaser Indemnified Party to recover indemnity or
      reimbursement except to the extent that the Company suffers any material
      prejudice or material harm with respect to such claim as a result of such
      failure. The Purchaser Indemnified Party shall also provide the Company
      with such further information concerning any such claims as the Company
      may reasonably request by written notice.

            (iii) Within five (5) Business Days after receiving notice of a
      claim for indemnification or reimbursement, the Company shall, by written
      notice to the Purchaser Indemnified Party, either (A) concede or deny
      liability for the claim in whole or in part, or (B) in the case of a claim
      asserted by a third party, advise that the matters set forth in the notice
      are, or will be, subject to contest or legal proceedings not yet finally
      resolved. If the Company concedes liability in whole or in part, it shall,
      within twenty (20) Business Days of such concession, pay the amount of the
      claim to the Purchaser Indemnified Party to the extent of the liability
      conceded. Any such payment shall be made in immediately available funds
      equal to the amount of such claim so payable. If the Company denies
      liability in whole or in part or advises that the matters set forth in the
      notice are, or will be, subject to contest or legal proceedings not yet
      finally resolved, then the Company shall make no payment (except for the
      amount of any conceded liability payable as set forth above) until the
      matter is resolved by a final judgment (not subject to any appeal) of a
      court or other tribunal of competent jurisdiction.

            (iv) In the case of any third party claim, if within five (5)
      Business Days after receiving the notice described in the preceding
      Section 11(a), the Company (A) gives written notice to the Purchaser
      Indemnified Party stating that the Company disputes and intends to defend
      against such claim, liability or expense at the Company's own cost and
      expense and (B) provides assurance reasonably acceptable to such Purchaser
      Indemnified Party that such indemnification will be paid fully and
      promptly if required and such Purchaser Indemnified Party will not incur
      cost or expense during the proceeding, then counsel for the defense shall
      be selected by the Company (subject to the consent of such Purchaser
      Indemnified Party which consent shall not be unreasonably withheld) and
      the Company shall not be required to make any payment to the Purchaser
      Indemnified Party with respect to such claim, liability or expense as long
      as the Company is conducting a good faith and diligent defense at its own
      expense; provided, however,

                                       23
<PAGE>
      that the assumption of defense of any such matters by the Company shall
      relate solely to the claim, liability or expense that is subject or
      potentially subject to indemnification. If the Company assumes such
      defense in accordance with the preceding sentence, it shall have the
      right, with the consent of such Purchaser Indemnified Party, which consent
      shall not be unreasonably withheld, to settle all indemnifiable matters
      related to claims by third parties which are susceptible to being settled
      provided the Company's obligation to indemnify such Purchaser Indemnified
      Party therefor will be fully satisfied only by payment of money by the
      Company pursuant to a settlement which includes a complete release of such
      Purchaser Indemnified Party. The Company shall keep such Purchaser
      Indemnified Party apprised of the status of the claim, liability or
      expense and any resulting suit, proceeding or enforcement action, shall
      furnish such Purchaser Indemnified Party with all documents and
      information that such Purchaser Indemnified Party shall reasonably request
      and shall consult with such Purchaser Indemnified Party prior to acting on
      major matters, including settlement discussions. Notwithstanding anything
      herein stated, such Purchaser Indemnified Party shall at all times have
      the right to fully participate in such defense at its own expense directly
      or through counsel; provided, however, if the named parties to the action
      or proceeding include both the Company and one or more Purchaser
      Indemnified Parties and representation of such parties by the same counsel
      would be inappropriate under applicable standards of professional conduct,
      the reasonable expense of separate counsel for all Purchaser Indemnified
      Parties shall be paid by the Company, provided that the Company shall be
      obligated to pay for only one counsel for all Purchaser Indemnified
      Parties in any jurisdiction. If no such notice of intent to dispute and
      defend is given by the Company, or if such diligent good faith defense is
      not being or ceases to be conducted, such Purchaser Indemnified Party may
      undertake the defense of (with counsel selected by such Purchaser
      Indemnified Party), and shall have the right to compromise or settle, such
      claim, liability or expense (exercising reasonable business judgment) with
      the consent of the Company, which consent shall not be unreasonably
      withheld. If such claim, liability or expense is one that by its nature
      cannot be defended solely by the Company, then such Purchaser Indemnified
      Party shall make available all information and assistance that the Company
      may reasonably request and shall cooperate with the Company in such
      defense.

      SECTION 12. Miscellaneous.

            (a) Entire Agreement; Amendments; Waivers. The terms and conditions
of this Agreement and the other Transaction Documents in effect between the
Company and each Purchaser represent the entire agreement between the parties
with respect to the subject matter hereof and thereof, and supersede any prior
agreements or understandings, whether written or oral, between the parties
respecting such subject matter. No provision of this Agreement may be waived or
amended except in a written instrument signed, in the case of an amendment, by
the Company and each Purchaser or, in the case of a waiver, by the party against
whom enforcement of any such waiver is sought. No course of dealing between or
among any of the parties hereto and no delay on the part of any party hereto in
exercising any rights hereunder or thereunder shall operate as a waiver of the
rights hereof and thereof. No waiver of any default with respect to any
provision, condition or requirement of this Agreement shall be deemed to be a
continuing waiver in the future or a waiver of any subsequent default or a
waiver of any other provision,

                                       24
<PAGE>
condition or requirement hereof, nor shall any delay or omission of either party
to exercise any right hereunder in any manner impair the exercise of any such
right.

            (b) Successors and Assigns. This Agreement inures to the benefit of
and is binding upon the parties hereto and their respective successors, and no
other person has any right or obligation hereunder. No Purchaser may assign this
Agreement or any rights or obligations hereunder, other than to Affiliates of
such Purchaser, without the prior written consent of the Company, such consent
not to be unreasonably withheld, provided that any permitted transferee shall
agree in writing to be bound, with respect to the transferred Securities, by the
provisions hereof that apply to the "Purchasers". The Company may not assign
this Agreement or any rights or obligations hereunder without the prior written
consent of each Purchaser, except pursuant to a merger, recapitalization or
other business combination transaction in which the surviving entity agrees in
writing to assume all of the covenants, liabilities and obligations of the
Company hereunder. Any assignment contrary to the terms hereof is null and void
and of no force or effect. Notwithstanding the foregoing, nothing in this
Agreement is intended to give any person not named herein the benefit of any
legal or equitable right, remedy or claim under this Agreement, except as
expressly provided herein.

            (c) Governing Law. This Agreement shall be deemed to be a contract
made under, and shall be construed in accordance with, the laws of the State of
Delaware, without giving effect to conflict of laws principles thereof. Each
party hereby irrevocably submits to the non-exclusive jurisdiction of the
federal courts sitting in the City of New York in the borough of Manhattan for
the adjudication of any dispute hereunder or in connection herewith or with any
transaction contemplated hereby, and hereby irrevocably waives, and agrees not
to assert in any suit, action or proceeding involving an Investor or permitted
assignee of such Investor, any claim that it is not personally subject to the
jurisdiction of any such court, that such suit, action or proceeding is brought
in an inconvenient forum or that the venue of such suit, action or proceeding is
improper. Each party hereby irrevocably waives personal service of process and
consents to process being served in any such suit, action or proceeding by
mailing a copy thereof to such party at the address in effect for notices to it
under this Agreement and agrees that such service shall constitute good and
sufficient service of process and notice thereof. Nothing contained herein shall
be deemed to limit in any way any right to serve process in any manner permitted
by law.

            (d) Remedies. It is specifically understood and agreed that any
breach of the provisions of the Transaction Documents by any party subject
hereto will result in irreparable injury to the other parties hereto, that the
remedy at law alone will be an inadequate remedy for such breach, and that, in
addition to any other remedies which they may have, such other parties may
enforce their respective rights by actions for specific performance (to the
extent permitted by law) without the necessity of showing economic loss or the
posting of any bond.

            (e) Severability. Whenever possible, each provision of this
Agreement shall be interpreted in such a manner as to be effective and valid
under applicable law, but if any provision of this Agreement shall be deemed
prohibited or invalid under such applicable law, such provision shall be
ineffective to the extent of such prohibition or invalidity, and such
prohibition or invalidity shall not invalidate the remainder of such provision
or the other provisions of this Agreement.

                                       25
<PAGE>
            (f) Counterparts. This Agreement may be executed simultaneously in
any number of counterparts, each of which when so executed and delivered shall
be taken to be an original; but such counterparts shall together constitute but
one and the same document. This Agreement and the other Transaction Documents
may be executed and delivered by facsimile transmission.

            (g) Notices. All notices and other communications required or
permitted hereunder must be in writing and, except as otherwise noted herein,
must be addressed as follows:

                  (i)   if to the Company, to:

                        Evergreen Solar, Inc.
                        259 Cedar Hill Street
                        Marlboro, Massachusetts  01752
                        Attention: Richard G. Chleboski, Chief Financial
                                   Officer,  Vice President, Treasurer and
                                   Secretary
                        Fax:  (508) 357-2279

                  (ii)  if to any Purchaser, at the address shown for such
                        Purchaser on the Schedule of Purchasers, marked for
                        attention as there indicated.

or to such other address as the party to whom notice is to be given may have
furnished to the other in writing in accordance with the provisions of this
Section 12(g). Any such notice or communication will be deemed to have been
received: (A) in the case of telecopy or personal delivery, on the date of such
delivery; (B) in the case of nationally-recognized overnight courier, on the
next Business Day after such notice is timely delivered to such courier; and (C)
if by registered or certified mail, on the Business Day actually received by the
intended recipient.

            (h) Expenses. Each party will bear its own expenses related to this
Agreement and the transactions contemplated hereby, except that the Company will
reimburse the Purchasers and the Placement Agent for reasonable legal fees and
expenses incurred by them in connection with the offer and sale of the
Securities up to, but not exceeding, $100,000 in the aggregate.

            (i) Section Headings. The descriptive headings and subheadings
herein have been inserted for convenience only and are not to be deemed to limit
or otherwise affect the construction of any provisions hereof.

            (j) No Reliance. Each party acknowledges that (i) it has such
knowledge in business and financial matters as to be fully capable of evaluating
this Agreement, the other Transaction Documents, and the transactions
contemplated hereby and thereby, (ii) it is not relying on any advice or
representation of any other party in connection with entering into this
Agreement, the other Transaction Documents, or such transactions (other than the
representations made in this Agreement or the other Transaction Documents),
(iii) it has not received from such party any assurance or guarantee as to the
merits (whether legal, regulatory, tax, financial or otherwise) of entering into
this Agreement or the other Transaction Documents or the performance of its
obligations hereunder and thereunder, and (iv) it has consulted with its

                                       26
<PAGE>
own legal, regulatory, tax, business, investment, financial and accounting
advisors to the extent that it has deemed necessary, and has entered into this
Agreement and the other Transaction Documents based on its own independent
judgment and on the advice of its advisors as it has deemed necessary, and not
on any view (whether written or oral) expressed by such other party.

            (k) Independent Nature of Purchasers' Obligations and Rights. The
obligations of each Purchaser hereunder are several and not joint with the
obligations of the other Purchasers hereunder, and no Purchaser shall be
responsible in any way for the performance of the obligations of any other
investor hereunder. Nothing contained herein or in any other agreement or
document delivered at the Closing, and no action taken by any Purchaser pursuant
hereto or thereto, shall be deemed to constitute any Purchasers as a
partnership, an association, a joint venture or any other kind of entity, or a
"group" as described in Section 13(d) of the Exchange Act, or create a
presumption that any Purchasers are in any way acting in concert with respect to
such obligations or the transactions contemplated by this Agreement. Each
Purchaser shall be entitled to protect and enforce its rights, including without
limitation the rights arising out of this Agreement or out of the other
Transaction Documents, and it shall not be necessary for any other Purchaser to
be joined as an additional party in any proceeding for such purpose.

                            [SIGNATURE PAGES FOLLOW]

                                       27
<PAGE>
      IN WITNESS WHEREOF, the parties have entered into this Agreement as of the
date first set forth above.

                                    THE COMPANY:

                                    EVERGREEN SOLAR, INC.

                                    By:  /s/ Richard M. Feldt
                                         ----------------------------------
                                         Name:  Richard M. Feldt
                                         Title: Chief Executive Officer and
                                                President

                                    PURCHASERS:

                                    LOEB PARTNERS CORPORATION,
                                    on behalf of its affiliated entities

                                    By:      /s/ Robert Grubin
                                             ----------------------------------
                                             Name: Robert Grubin
                                             Title: Vice-President

                                    LB I GROUP INC.

                                    By:      /s/ Fred E. Steinberg
                                             ----------------------------------
                                             Name: Fred E. Steinberg
                                             Title: Vice-President

                                    ALEXANDRA GLOBAL MASTER FUND LTD.

                                    By:      /s/ Mikhail Filimonov
                                             ----------------------------------
                                             Name: Mikhail Filimonov
                                             Title: Chairman

                                    OMICRON MASTER TRUST

                                    By:      Omicron Capital L.P., as advisor
                                    By:      Omicron Capital Inc., its general
                                             partner

                                    By:      /s/ Olivier Morali
                                             ----------------------------------
                                             Name: Olivier Morali
                                             Title: President
<PAGE>
                                    SF CAPITAL PARTNERS LTD.

                                    By:      /s/ Michael A. Roth
                                             ----------------------------------
                                             Name: Michael A. Roth
                                             Title: Authorized Signatory

                                    GRACE BROTHERS, LTD

                                    By:      /s/ Bradford T. Whitmore
                                             ----------------------------------
                                             Name: Bradford T. Whitmore
                                             Title: General Partner

                                    CRT CAPITAL GROUP LLC

                                    By:      /s/ Michael Vaughn
                                             ----------------------------------
                                             Name: Michael Vaughn
                                             Title: Managing Member

                                    TRUK OPPORTUNITY FUND, LLC

                                    By:      Atoll Asset Management, LLC

                                    By:      /s/ Michael E. Fein
                                             ----------------------------------
                                             Name: Michael E. Fein
                                             Title: Principal

                                    TRUK INTERNATIONAL FUND, LP

                                    By:      Atoll Asset Management, LLC

                                    By:      /s/ Michael E. Fein
                                             ----------------------------------
                                             Name: Michael E. Fein
                                             Title: Principal

                                    PORTSIDE GROWTH AND
                                    OPPORTUNITY FUND

                                    By:      /s/ Jeff Smith
                                             ----------------------------------
                                             Name: Jeff Smith
                                             Title: Authorized Signatory
<PAGE>
                                    MORGAN STANLEY AND CO.
                                    INTERNATIONAL LIMITED

                                    By:      /s/ Lars Lemonius
                                             ----------------------------------
                                             Name: Lars Lemonius
                                             Title: Authorized Signatory

                                    DOUBLE BLACK DIAMOND
                                    OFFSHORE LDC

                                    By:      Carlson Capital, L.P., its
                                             investment advisor
                                    By:      Asgard Investment Corp., its
                                             general partner

                                    By:      /s/ Clint D. Carlson
                                             ----------------------------------
                                             Name: Clint D. Carlson
                                             Title: President

                                    BLACKMORE PARTNERS LP

                                    By:      Amjac Capital Management, its
                                             general partner

                                    By:      /s/ Jeffrey W. Priest
                                             Name: Jeffrey W. Priest
                                             Title: Managing Member

                                    BLACKMORE WALLACE PARTNERS LP

                                    By:      Amjac Capital Management, its
                                             general partner

                                    By:      /s/ Jeffrey W. Priest
                                             ----------------------------------
                                             Name: Jeffrey W. Priest
                                             Title: Managing Member

                                    BLACKMORE OFFSHORE FUND, LTD.

                                    By:      /s/ Jeffrey W. Priest
                                             ----------------------------------
                                             Name: Jeffrey W. Priest
                                             Title: Portfolio
                                             Manager/Investment Advisor
<PAGE>
                                    EXHIBIT A

                             Schedule of Purchasers

<TABLE>
<CAPTION>
                                             Number       Number of        Purchase
Purchaser                                  of Shares   Warrant Shares       Price
---------                                  ---------   --------------       -----
<S>                                        <C>         <C>               <C>
Loeb Partners Corporation                    957,854         287,356     $ 2,500,000

LB I Group Inc.                            1,915,709         574,713     $ 5,000,000

Alexandra Global Master Fund Ltd.            383,142         114,943     $ 1,000,000

Omicron Master Trust                         191,571          57,471     $   500,000

SF Capital Partners Ltd.                     574,713         172,414     $ 1,500,000

Grace Brothers LTD                         1,149,425         344,828     $ 3,000,000

CRT Capital Group LLC                      1,374,137         412,240     $ 3,586,500

Truk Opportunity Fund, LLC                   139,500          41,850     $   364,095

Truk International Fund, LP                   10,500           3,150     $    27,405

Portside Opportunity and Growth Fund         383,142         114,943     $ 1,000,000

Morgan Stanley and Co. International         383,142         114,943     $ 1,000,000
Limited

Double Black Diamond Offshore LDC             44,000          13,200     $   114,840

Blackmore Partners LP                         23,000           6,900     $    60,030

Blackmore Wallace Partners, LP                64,000          19,200     $   167,040

Blackmore Offshore Fund, Ltd.                 69,000          20,700     $   180,090

         Total                             7,662,835       2,298,851     $20,000,000
</TABLE>

                                      D-1<PAGE>

                                                                    EXHIBIT 10.2

                                WARRANT AGREEMENT

      THIS WARRANT AGREEMENT (the "Agreement") is entered into as of June 21,
2004 by and among EVERGREEN SOLAR, INC., a Delaware corporation (the "Company")
and the Holders ("the Holders") identified on the Schedule of Holders attached
hereto as Exhibit A (the "Schedule of Holders").

                                   WITNESSETH

      WHEREAS, pursuant to that certain Stock and Warrant Purchase Agreement
dated as of June 16, 2004 by and among the Company and the Holders (the
"Purchase Agreement"), the Company has agreed to sell to the Holders, and the
Holders have agreed to purchase from the Company, 7,662,835 shares of common
stock, par value $0.01 per share, of the Company and warrants to purchase
2,298,851 shares of the Common Stock (the "Warrants"); and

      WHEREAS, the parties hereto desire to enter into this Agreement for the
purpose of setting forth certain terms and conditions applicable to the Warrants
and certain rights and obligations among the Company and the Holders, as more
fully described herein.

      NOW, THEREFORE, in consideration of the mutual covenants and agreements
contained herein and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto hereby agree as
follows:

      SECTION 1. Definitions. As used in this Agreement, the following
capitalized terms shall have the following meanings. Capitalized terms appearing
below and not otherwise defined herein shall have the meaning ascribed to them
in the Purchase Agreement.

      "Allocation Amount" has the meaning set forth in Section 3(h).

      "Board of Directors" means the Board of Directors of the Company.

      "Business Day" means any day other than a Saturday, Sunday or a day on
which commercial banking institutions in New York, New York are authorized or
required by law or executive order to be closed.

      "Cap Amount" means 350,000 shares of Common Stock.

      "Cashless Exercise" has the meaning set forth in Section 3(c)(i).

      "Charter" means the Third Amended and Restated Certificate of
Incorporation of the Company, as amended or supplemented from time to time.

      "Commission" means the Securities and Exchange Commission.

      "Common Stock" means (a) the common stock, par value $0.01 per share, of
the Company, or (b) any other capital stock into which such Common Stock is
reclassified or reconstituted.
<PAGE>
      "Common Stock Deemed Outstanding" has the meaning set forth in Section
7(a)(ii).

      "Company Stock Option Plans" means, collectively, the Company's 1994 Stock
Option Plan, 2000 Stock Option and Incentive Plan, 2000 Employee Stock Purchase
Plan, and any other future equity incentive plans of the Company with similar
objectives which shall be duly authorized and adopted by the Board of Directors
and the shareholders of the Company.

      "Convertible Securities" means evidences of indebtedness and any other
shares of stock or securities of the Company which are directly or indirectly
convertible or exchangeable, with or without payment of additional consideration
in cash or property, for shares of Common Stock, either immediately or upon the
onset of a specified date or the happening of a specified event.

      "Distribution" has the meaning set forth in Section 7(a)(ii).

      "Election to Purchase" has the meaning set forth in Section 3(a).

      "Exchange Act" means the Securities Exchange Act of 1934, as amended, and
the rules and regulations of the Commission thereunder.

      "Exercise Amount" has the meaning set forth in Section 3(a).

      "Exercise Payment" has the meaning set forth in Section 3(a).

      "Exercise Price" has the meaning set forth in Section 2.

      "Expiration Date" means the fifth (5th) anniversary of the date hereof.

      "Fully Diluted" means, with respect to the Common Stock, as of a
particular time the total outstanding shares of Common Stock as of such time,
determined by treating all outstanding Options (irrespective of whether then
vested) as having been exercised and by treating all outstanding Convertible
Securities of the Company as having been so converted into Common Stock;
provided, however, that with respect to any determination of Fully Diluted
Common Stock in connection with an anti-dilution adjustment pursuant to Section
7, if the event giving rise to such adjustment would trigger any anti-dilution
rights of such Options or Convertible Securities or otherwise increase the
number of shares of Common Stock subject to such Options or into which such
Convertible Securities are convertible or exchangeable, the number of shares of
Common Stock deemed to be outstanding immediately after such issuance shall
include also such increase in the number of shares of Common Stock subject to
such Options or into which such Convertible Securities are convertible or
exchangeable.

      "Initial Exercise Price" has the meaning set forth in Section 2.

      "Market Price" of any security means the value determined in accordance
with the following provisions:

                  (i) if such security is listed on a national securities
      exchange registered under the Exchange Act, a price equal to the average
      of the closing sales prices

                                       2
<PAGE>
      for such security on such exchange for each day during the twenty (20)
      consecutive trading days immediately preceding the date in question; and

                  (ii) if not so listed, and such security is quoted on the
      Nasdaq National Market, a price equal to the average of the closing bid
      and asked prices for such security quoted on such system each day during
      the twenty (20) consecutive trading days immediately preceding the date in
      question.

      "Options" means all options, warrants and other rights for the purchase or
other acquisition of Common Stock or Convertible Securities.

      "Person" means any individual, firm, corporation, partnership, limited
liability company, joint venture, association, joint stock company, trust,
unincorporated organization or government or any agency or political subdivision
thereof, or other entity of any kind and includes any successor (by merger or
otherwise) of such entity.

      "Principal Office" means the Company's principal office as set forth in
Section 9(g) hereof or such other principal office of the Company in the United
States of America the address of which first shall have been set forth in a
notice to the Holders.

      "Registration Rights Agreement" has the meaning set forth in Section 3(c).

      "Securities Act" means the Securities Act of 1933, as amended, and the
rules and regulations of the Commission thereunder.

      "Stock Combination" has the meaning set forth in Section 7(a)(i).

      "Stock Dividend" has the meaning set forth in Section 7(a)(i).

      "Stock Subdivision" has the meaning set forth in Section 7(a)(i).

      "Subsidiary" means, with respect to any Person, any entity of which more
than fifty percent (50%) of the outstanding capital stock or other ownership
interests having ordinary voting power to elect the board of directors or other
managers of such entity is at the time, directly or indirectly, owned by or the
management is otherwise controlled by such Person. Unless otherwise qualified,
references to "Subsidiary" or "Subsidiaries" herein shall refer to those of the
Company.

      "Transaction" has the meaning set forth in Section 7(b).

      "Two-Thirds Interest" has the meaning set forth in Section 7(a)(vi).

      "Warrant Shares" means (a) the fully paid and nonassessable shares of
Common Stock issued upon exercise of the Warrants in accordance with the terms
and conditions hereunder, and (b) all other shares of the Company's capital
stock issued with respect to such shares by way of stock dividend, stock split
or other reclassification or in connection with any merger, consolidation,
recapitalization or other reorganization affecting the Company's capital stock.

                                       3
<PAGE>
      SECTION 2. Issuance of Warrants. Pursuant to the Purchase Agreement and
subject to the terms and conditions of this Agreement, the Company hereby issues
and delivers to each Holder a Warrant in the form attached hereto as Exhibit B
to purchase at an initial price per share equal to $3.335 (the "Initial Exercise
Price"), as such price may be adjusted or readjusted from time to time as
provided in this Agreement (the "Exercise Price"), that number of Warrant Shares
indicated with respect to each such Holder on the Schedule of Holders, as such
number may be adjusted or readjusted from time to time as provided in this
Agreement.

      SECTION 3. Exercise of Warrants.

            (a) Exercise. At any time on or after December 22, 2004 and before
the Expiration Date, each Holder, in accordance with the terms hereof, may
exercise its Warrant, in whole or in part (except as to a fractional share), by
(i) delivering such Warrant to the Company during normal business hours on any
Business Day at the Company's Principal Office, together with an Election to
Purchase in the form attached hereto as Exhibit C (the "Election to Purchase"),
duly executed by the Holder, specifying the number of Warrant Shares (without
giving effect to any adjustment thereto) to be issued to the Holder as a result
of such exercise (the "Exercise Amount"), (ii) surrendering this Warrant to the
Company, properly endorsed by the Holder (or if the Warrant has been destroyed,
stolen or has otherwise been misplaced, by delivering to the Company an
affidavit of loss duly executed by the Holder), and (iii) by tendering payment
for the Warrant Shares designated by the Exercise Notice in an amount equal to
the product of (A) the Exercise Price and (B) the Exercise Amount (the "Exercise
Payment"). If the Expiration Date is not a Business Day, then such Warrant may
be exercised on the next succeeding Business Day.

            (b) Payment of Exercise Price. Payment of the Exercise Payment shall
be made to the Company in cash or other immediately available funds, or as
provided in Section 3(c), or a combination thereof. In the case of payment of
all or a portion of the Exercise Payment pursuant to Section 3(c), the direction
by the exercising Holder to make a "Cashless Exercise" shall serve as
accompanying payment for that portion of the Exercise Price.

            (c) Net Exchange.

                  (i) If at any time after sixty (60) days from the date hereof
      the Company fails to maintain an effective registration statement with
      respect to the Warrant Shares pursuant to the terms and conditions of that
      certain Registration Rights Agreement dated as of the date hereof by and
      among the Company and the Holders (the "Registration Rights Agreement"),
      each Holder may, in lieu of exercising or converting any Warrant pursuant
      to the terms of Section 3(b), elect to exchange such Warrant pursuant to
      this Section 3(c) (a "Cashless Exercise"), in whole or in part (except as
      to a fractional share), at any time and from time to time during normal
      business hours on any Business Day on or prior to the Expiration Date, by
      (i) delivering to the Company an Election to Purchase, duly executed by
      the Holder, specifying the number of Warrant Shares (without giving effect
      to any adjustment thereto) to be issued to the Holder as a result of such
      exchange, and (ii) surrendering such Warrant to the Company, properly
      endorsed by the Holder (or if Warrant has been destroyed, stolen or has
      otherwise been misplaced, by delivering to the Company an affidavit of
      loss duly executed by the

                                       4
<PAGE>
      Holder), and the Holder shall thereupon be entitled to receive the number
      of Warrant Shares equal to the product of (A) the number of Warrant Shares
      issuable upon exercise of such Warrant (or, if only a portion of such
      Warrant is being exercised, issuable upon the exercise of such portion)
      for cash, determined as provided in Section 3(b), and (B) a fraction, the
      numerator of which is the Fair Market Value per share of Common Stock at
      the time of such exercise minus the Exercise Price in effect at the time
      of such exercise, and the denominator of which is the Fair Market Value
      per share of Common Stock at the time of such exercise, such number of
      shares so issuable upon such exchange to be rounded up or down to the
      nearest whole number of shares of Common Stock.

                  (ii) The "exchange" of any Warrant pursuant to this Section
      3(c) is intended to qualify as a recapitalization within the meaning of
      Section 368(a)(1)(E) of the Code.

                  (iii) For all purposes of any Warrant (other than this Section
      3(c)), any reference herein to the "exercise" of such Warrant shall be
      deemed to include a reference to the exchange of such Warrant into Common
      Stock in accordance with the terms of this Section 3(c).

            (d) Issuance of Shares of Common Stock. Upon receipt by the Company
of the exercising Holder's Warrant at its Principal Office for exercise with
respect to the Exercise Amount, and accompanied by payment of the Exercise
Payment as aforesaid, such Holder shall be deemed to be the holder of record of
the Warrant Shares issuable upon such exercise, notwithstanding that
certificates representing such Warrant Shares may not then be actually
delivered. As soon as practicable after exercise of such Warrant in accordance
with Section 3(a), but in no event later than five (5) Business Days after such
exercise, the Company shall at its expense issue and cause to be delivered to,
or upon the written order of, such Holder a certificate or certificates for the
Exercise Amount, subject to any reduction as provided in Section 3(c), as
applicable.

            (e) Fractional Shares. The Company shall not be required to deliver
fractions of shares of Common Stock upon exercise of any Warrant. If any
fraction of a share of Common Stock would be deliverable upon exercise of a
Warrant, the Company may, in lieu of delivering such fraction of a share of
Common Stock, make a cash payment to the affected Holder in an amount equal to
the proportionate amount of the Fair Market Value Per Share as of the Business
Day immediately preceding the date of exercise of such Warrant.

            (f) Partial Exercise. In the event of a partial exercise of any
Warrant, the Company shall issue to the affected Holder a Warrant in like form
for the unexercised portion thereof following the issuance of a certificate or
certificates for Warrant Shares in the amount of the Exercise Amount pursuant to
Section 2(d).

            (g) No Rights or Liabilities as a Stockholder. Except as expressly
set forth herein, nothing contained in any Warrant shall be construed as
conferring upon any Holder any rights as a stockholder of the Company or as
imposing any obligation on such Holder to purchase any securities or as imposing
any liabilities on such Holder as a stockholder of the Company, whether such
obligation or liabilities are asserted by the Company or creditors of the
Company.

                                       5
<PAGE>
            (h) 19.99% Limitation. Until Stockholder Approval (as defined in the
Purchase Agreement) is obtained, no Holder shall be issued Warrant Shares
pursuant to the exercise of such Holder's Warrant in an amount greater than the
product of (A) the Cap Amount multiplied by (B) a fraction, the numerator of
which is the aggregate number of Warrant Shares to which such Holder would be
entitled upon exercise of such Holder's Warrant, and the denominator of which is
the sum of (i) the aggregate number of Warrant Shares issued and sold under the
Purchase Agreement and (ii) the aggregate number of shares of Common Stock
issuable upon the exercise of warrants issued under that certain Warrant
Agreement dated as of the date hereof by and between the Company and CRT Capital
Group LLC (the "Allocation Amount"). In the event that any Holder shall sell or
otherwise transfer any of such Holder's Warrants, the transferring Holder's
Allocation Amount shall be allocated between the transferring Holder and
transferee Holder pro rata in proportion to the number of Warrant Shares
transferred to such transferee and the number of Warrant Shares retained by such
transferring Holder.

      SECTION 4. Payment of Taxes. The Company shall pay all stamp taxes
attributable to the initial issuance of Warrant Shares or other securities
issuable upon the exercise of each Warrant or issuable pursuant to Section 7
hereof, excluding any tax or taxes which may be payable because of the transfer
involved in the issuance or delivery of any certificates for shares or other
securities in a name other than that of the exercising Holder in respect of
which such shares or securities are issued.

      SECTION 5. Replacement Warrant. If any Warrant is mutilated, lost, stolen
or destroyed, the Company shall issue and deliver in exchange and substitution
for and upon cancellation of the mutilated Warrant, or in lieu of and in
substitution for the Warrant lost, stolen or destroyed, a new Warrant of like
tenor and representing an equivalent right or interest upon receipt of evidence
reasonably satisfactory to the Company of such loss, theft or destruction of
such Warrant and upon receipt of indemnity reasonably satisfactory to the
Company; provided, however, that if the Holder is a financial institution or
other institutional investor its own indemnity agreement shall be satisfactory.

      SECTION 6. Covenants of the Company.

            (a) Reservation of Authorized Common Stock. The Company shall at all
times reserve and keep available out of the aggregate of its authorized but
unissued shares of capital stock , free of preemptive rights, such number of its
duly authorized shares of Common Stock, or other stock or securities issuable
pursuant to Section 7 hereof, as shall be sufficient to enable the Company at
any time to fulfill all of its obligations under this Agreement and the
Warrants.

            (b) Affirmative Actions to Permit Exercise and Realization of
Benefits. If any shares of Common Stock reserved or to be reserved for the
purpose of issuance as Warrant Shares, or any shares or other securities
reserved or to be reserved for the purpose of issuance pursuant to Section 7
hereof, require registration with or approval of any governmental authority
under any federal or state law, statute, rule, regulation, guideline, order,
court or administrative ruling, request or directive, or any rule or regulation
of the Nasdaq National Market (whether or not having the force of law and
whether or not failure to comply therewith would be unlawful)

                                       6
<PAGE>
(collectively, a "Regulatory Requirement") before such Warrant Shares or other
shares or other securities may be validly issued and delivered upon exercise of
any Warrant, then the Company covenants and agrees that it will, at its sole
expense, promptly secure such registration or approval, as the case may be.

            (c) Regulatory Requirements and Restrictions. In the event of any
reasonable determination by any Holder that, by reason of any Regulatory
Requirement, such Holder is effectively restricted or prohibited from holding
its Warrant or the related Warrant Shares (including any shares of capital stock
or other securities distributable to such Holder in any merger, reorganization,
readjustment or other reclassification), or otherwise realize upon or receive
the benefits intended under its Warrant, the Company shall, and shall use its
reasonable efforts to have its shareholders, take such actions as such Holder
may deem reasonably necessary to permit such Holder to comply with such
Regulatory Requirement. All costs of taking such action, whether by the Company,
the affected Holder or otherwise, shall be borne by the Holder. Such action to
be taken may include, without limitation, the Company's authorization of one or
more new classes of non-voting or other capital stock for which such Warrant may
be exercised, and such modifications and amendments to the Charter, this
Agreement, the applicable Warrant or any other documents and instruments related
to or executed in connection herewith or with such Warrant as may be deemed
reasonably necessary by such Holder. Such Holder shall give written notice to
the Company of any such determination and the action or actions it deems
necessary to comply with such Regulatory Requirement, which notice and
determination shall be conclusive absent manifest error, and the Company shall
take all reasonable steps necessary to comply with such determination as
expeditiously as possible.

            (d) Validly Issued Shares. The Company covenants and agrees that all
shares of Common Stock that may be delivered upon exercise of each Warrant
(including those shares deliverable pursuant to Section 7 hereof) shall upon
delivery by the Company be duly authorized and validly issued, fully paid and
nonassessable, free from all taxes, liens and charges with respect to the issue
or delivery thereof and otherwise free of all other security interests,
encumbrances and claims of any nature whatsoever.

            (e) Securities Law Reporting Requirements. The Company covenants and
agrees that it will comply with the reporting requirements of Sections 13 and
15(d) of the Exchange Act and will comply with all other public information
reporting requirements of the Securities and Exchange Commission (including Rule
144 promulgated under the Securities Act) from time to time in effect and
relating to the availability of an exemption from the Securities Act for the
sale of restricted securities.

            (f) No Impairment. The Company will not, by amendment of its Charter
or through any reorganization, recapitalization, transfer of assets,
consolidation, merger, share exchange, dissolution or any other voluntary
action, avoid or seek to avoid the observance or performance of any of the terms
of this Warrant, including without limitation the adjustments required under
Section 7 hereof, and will at all times in good faith assist in the carrying out
of all such terms. Without limiting the generality of the foregoing and
notwithstanding any other provision of this Agreement to the contrary (including
by way of implication), the Company (a) will not increase the par value of any
shares of Common Stock receivable on the exercise of any Warrant above the
amount payable therefor on such exercise and (b) will take all such action as

                                       7
<PAGE>
may be necessary or appropriate so that the Company may validly and legally
issue fully paid and nonassessable shares of Common Stock on the exercise of any
Warrant. The Company covenants and agrees that it shall not, without the prior
written consent of each Holder, enter into or agree to become subject to any
term, condition, provision or agreement that would restrict in any material way
the performance of the Company's obligations under this Agreement or any Warrant
issued hereunder. The Company represents to each Holder that the Company is not
subject to or bound by any such term, condition, provision or agreement as of
the date hereof.

            (g) Issuances Prior to Stockholder Approval. The Company covenants
and agrees that it will not issue or sell, or be deemed to have issued or sold,
any securities which would require an adjustment to the Exercise Price pursuant
to Section 7(a) prior to the effectiveness of the Stockholder Approval or the
receipt of an opinion of counsel reasonably satisfactory to the Company and its
counsel that such Stockholder Approval is not required.

      SECTION 7. Adjustments and Notices. The Exercise Price and the number of
Warrant Shares issuable upon the exercise of a Warrant shall be subject to
adjustment as set forth in this Section 7. No adjustments shall be made under
this Section 7 as a result of (i) the issuance of the Warrant Shares upon
exercise of any Warrant, or (ii) the issuance of Common Stock as a dividend or
other distribution or adjustment with respect to Common Stock issued as set
forth in clause (i).

            (a) Adjustments. The Exercise Price and the number of Warrant Shares
issuable upon the exercise of each Warrant, after taking into consideration any
prior adjustments pursuant to this Section 7, shall be subject to adjustment and
readjustment from time to time as follows.

                  (i) Stock Subdivisions and Combinations. In case at any time
      or from time to time the Company shall:

                              (A) take a record of the holders of its Common
            Stock for the purpose of entitling them to receive a dividend
            payable in, or other distribution of, Common Stock (a "Stock
            Dividend"),

                              (B) subdivide its outstanding shares of Common
            Stock into a greater number of shares of Common Stock, including
            without limitation by means of a stock split, stock dividend or
            otherwise (a "Stock Subdivision"), or

                              (C) combine its outstanding shares of Common Stock
            into a smaller number of shares of Common Stock by mean of a reverse
            stock split or otherwise (a "Stock Combination"),

      then (1) in the case of a Stock Dividend or a Stock Subdivision, the
      number of Warrant Shares issuable upon the exercise of such Warrant
      immediately prior thereto shall be proportionately increased and the
      Exercise Price in effect immediately prior thereto shall be
      proportionately decreased, and (2) in the case of a Stock Combination, the
      number of Warrant Shares issuable upon the Exercise of such Warrant
      immediately prior thereto shall be proportionately decreased and the
      Exercise Price in effect immediately prior thereto shall be
      proportionately increased. In the event the Company shall declare or pay,

                                       8
<PAGE>
      without consideration, any dividend on the Common Stock payable in any
      right to acquire Common Stock for no consideration, then the Company shall
      be deemed to have made a Stock Dividend in an amount of shares equal to
      the maximum number of shares issuable upon exercise of such rights to
      acquire Common Stock, and the Exercise Price and the number of Warrant
      Shares issuable upon the exercise of such Warrant shall be adjusted in
      accordance with the preceding sentence.

            A reclassification of the Common Stock into shares of Common Stock
      and shares of any other class of stock shall be deemed a Distribution by
      the Company to the holders of its Common Stock of such shares of such
      other class of stock and, if the outstanding shares of Common Stock shall
      be changed into a larger or smaller number of shares of Common Stock as a
      part of such reclassification, such event shall be deemed a Stock
      Subdivision or Stock Combination, as the case may be, of the outstanding
      shares of Common Stock within the meaning of Section 7(a)(i) hereof.

                  (ii) Issuance of Common Stock. Except as provided in Section
      7(a)(vii) and except in the case of an event described in Section 7(a)(i):

                              (A) if at any time prior to the effectiveness of
            the Shelf Registration Statement (as such term is defined in the
            Registration Rights Agreement) filed pursuant to the terms and
            conditions of the Registration Rights Agreement the Company issues
            or sells, or is, in accordance with this Section 7(a)(ii), deemed to
            have issued or sold, any shares of Common Stock for a consideration
            per share less than the Exercise Price in effect immediately prior
            to such issuance or sale, then, upon such issuance or sale (or
            deemed issuance or sale), the Exercise Price shall be reduced to the
            price per share receivable by the Company for such issuance or sale
            (or deemed issuance or sale), as the case may be; and

                              (B) if at any time or from time to time thereafter
            the Company issues or sells, or is, in accordance with this Section
            7(a)(ii), deemed to have issued or sold, any shares of Common Stock
            for a consideration per share less than the Exercise Price in effect
            immediately prior to such issuance or sale, then, upon such issuance
            or sale (or deemed issuance or sale), the Exercise Price shall be
            reduced to the price determined by dividing (x) the sum of (A) the
            Common Stock Deemed Outstanding (as defined below) immediately prior
            to such issuance or sale (or deemed issuance or sale) multiplied by
            the Exercise Price then in effect and (B) the consideration, if any,
            received by the Company upon such issuance or sale (or deemed
            issuance or sale) by (y) the Common Stock Deemed Outstanding
            immediately after such issuance or sale (or deemed issuance or
            sale).

      The date as of which the Exercise Price shall be computed shall be the
earlier of the date on which the Company shall enter into a firm contract or
commitment for the issuance of such additional shares of Common Stock or the
date of actual issuance of such additional shares of Common Stock. The
provisions of this Section 7(a)(ii) shall not apply to any issuance of
additional shares of Common Stock for which an adjustment is otherwise provided
under Section 7(a)(i) hereof.

                                       9
<PAGE>
      For purposes of this Section 7(a)(ii), the term "Common Stock Deemed
Outstanding" shall mean the sum of (A) the number of shares of Common Stock
outstanding immediately prior to the date hereof (including for this purpose all
shares of Common Stock issuable upon exercise or conversion of all outstanding
Options or Convertible Securities), plus (B) the number of shares of Common
Stock issued or sold (or deemed issued or sold) after the date hereof, the
issuance or sale of which resulted in an adjustment to the Exercise Price
pursuant to Section 7(a)(ii) plus (C) the number of shares of Common Stock
deemed issued or sold pursuant to Section 7(a)(vi); provided, that Common Stock
Deemed Outstanding shall not include (i) the Warrants, (ii) the Warrant Shares
issued pursuant to such Warrants, or (iii) shares of capital stock owned or held
by or for the account of the Company (except that the disposition of any such
shares owned or held by or for the account of the Company shall be considered an
issuance or sale of Common Stock for the purpose of this Section 7(a)(ii)).

                  (iii) Issuance of Rights or Options. If the Company, at any
      time after the date hereof, in any manner, grants (whether directly or by
      assumption in a merger or otherwise) any warrants or other rights to
      subscribe for or to purchase, or any Options or Convertible Securities, in
      each case for consideration per share (determined as provided in this
      paragraph and in Section 7(a)(viii)) less than the Exercise Price then in
      effect, whether or not such Options or Convertible Securities are
      immediately exercisable, convertible, or exchangeable, then the total
      maximum number of shares of Common Stock issuable upon the exercise of
      such Options, or upon conversion or exchange of the total maximum amount
      of such Convertible Securities issuable upon exercise of such Options,
      shall be deemed to have been issued as of the date of granting of such
      Options, at a price per share equal to the amount determined by dividing
      (A) the total amount, if any, received or receivable by the Company as
      consideration for the issuance of such Options, plus the minimum aggregate
      amount of additional consideration payable to the Company upon the
      exercise of all such Options, plus, in the case of such Options that
      relate to Convertible Securities, the minimum aggregate amount of
      additional consideration, if any, payable upon the issuance or sale of
      such Convertible Securities and upon the conversion or exchange of
      Convertible Securities, by (B) the total maximum number of shares of
      Common Stock deemed to have been so issued. Except as otherwise provided
      in Section 7(a)(vi), no adjustment of the Exercise Price shall be made
      upon the actual issuance of such Common Stock or of such Convertible
      Securities upon exercise of such Options or upon the actual issuance of
      such Common Stock upon conversion or exchange of such Convertible
      Securities.

                  (iv) Issuance of Convertible Securities. If the Company, at
      any time after the date hereof, in any manner, issues or sells any
      Convertible Securities for consideration per share (determined as provided
      in this paragraph and in Section 7(a)(vi))) less than the Exercise Price
      then in effect, whether or not the right to exchange or convert any such
      Convertible Securities is immediately exercisable, then the total maximum
      number of shares of Common Stock issuable upon conversion or exchange of
      all such Convertible Securities shall be deemed to have been issued as of
      the date of the issuance or sale of such Convertible Securities, at a
      price per share equal to the amount determined by dividing (A) the total
      amount, if any, received or receivable by the Company as consideration for
      the issuance or sale of such Convertible Securities, plus the minimum
      aggregate amount of additional consideration, if any, payable to the
      Company

                                       10
<PAGE>
      upon the conversion or exchange thereof, by (B) the total maximum number
      of shares of Common Stock deemed to have been so issued; provided,
      however, that (1) except as otherwise provided in Section 7(a)(v), no
      adjustment of the Exercise Price shall be made upon the actual issuance of
      such Common Stock upon conversion or exchange of such Convertible
      Securities and (2) if any such issuance or sale of such Convertible
      Securities is made upon exercise of any Options to purchase any such
      Convertible Securities, no further adjustment of the Exercise Price shall
      be made by reason of such issuance or sale.

                  (v) Change in Option Price or Conversion Rate; Termination of
      Options or Convertible Securities. If a change occurs in (A) the maximum
      number of shares of Common Stock issuable in connection with any Option
      referred to in Section 7(a)(iii) or any Convertible Securities referred to
      in Section 7(a)(iii) or (iv), (B) the purchase price provided for in any
      Option referred to in Section 7(a)(iii), (C) the additional consideration,
      if any, payable upon the conversion or exchange of any Convertible
      Securities referred to in Section 7(a)(iii) or (iv), or (D) the rate at
      which Convertible Securities referred to in Section 7(a)(iii) or (iv) are
      convertible into or exchangeable for Common Stock (in each case, other
      than in connection with an event described in Section 7(a)(viii)), then
      the Exercise Price in effect at the time of such event shall be readjusted
      to the Exercise Price that would have been in effect at such time had such
      Options or Convertible Securities that remain outstanding provided for
      such changed maximum number of shares, purchase price, additional
      consideration or conversion rate, as the case may be, at the time
      initially granted, issued or sold, but only if as a result of such
      adjustment the Exercise Price then in effect is thereby reduced. Upon the
      termination of any such Option or any such right to convert or exchange
      such Convertible Securities, the Exercise Price then in effect hereunder
      shall be increased to the Exercise Price that would have been in effect at
      the time of such termination had such Option or Convertible Securities, to
      the extent outstanding immediately prior to such termination (i.e., to the
      extent that fewer than the number of shares of Common Stock deemed to have
      been issued in connection with such Option or Convertible Securities were
      actually issued), never been issued or been issued at such higher price,
      as the case may be.

                  (vi) Consideration for Stock. In case any shares of Common
      Stock are issued or sold, or deemed issued or sold, for cash, the
      consideration received therefor shall be deemed to be the amount received
      or to be received by the Company therefor (determined with respect to
      deemed issuances and sales in connection with Options and Convertible
      Securities in accordance with clause (A) of Section 7(a)(iii) or Section
      7(a)(iv), as applicable) determined in the manner set forth below in this
      Section 7(a)(vi). If any shares of Common Stock are issued or sold, or
      deemed issued or sold, for a consideration other than cash, the amount of
      the consideration other than cash received by the Company shall be deemed
      to be the fair value of such consideration received or to be received by
      the Company (determined with respect to deemed issuances and sales in
      connection with Options and Convertible Securities in accordance with
      clause (A) of Section 7(a)(iii) or Section 7(a)(iv), as appropriate) as
      determined in good faith by the Board of Directors and Holders holding
      Warrants representing at least 66-2/3 % of the Warrant Shares issuable
      upon exercise of all outstanding Warrants (a "Two Thirds Interest"). If
      any Options are issued in connection with the issuance and sale of other

                                       11
<PAGE>
      securities of the Company, together comprising one integral transaction in
      which no specific consideration is allocated to such Options by the
      parties thereto, such Options shall be deemed to have been issued for such
      consideration as determined in good faith by the Board of Directors and a
      Two-Thirds Interest; provided that if the Company and a Two-Thirds
      Interest are unable to reach agreement as to the value of such
      consideration, then the value thereof will be determined by an independent
      appraisal by a mutually agreed to investment banker, the fees of which
      shall be paid by the Company.

                  (vii) Other Issuances or Sales; Indeterminable Amounts. In
      calculating any adjustment to the Exercise Price pursuant to this Section
      7(a): (A) any shares of Common Stock, Options or Convertible Securities
      issued or sold (or deemed issued or sold pursuant to Section 7(a)(iii) or
      Section 7(a)(iv)) after the date hereof and prior to the effective date of
      such adjustment, the issuance or sale (or deemed issuance or sale) of
      which did not result in any adjustment to the Exercise Price under this
      Section 7(a), shall be deemed to have been issued or sold as part of the
      issuance or sale (or deemed issuance or sale) giving rise to such
      adjustment for the same consideration per share as the Company received in
      the issuance or sale (or deemed issuance or sale) giving rise to such
      adjustment, and (B) any Options or Convertible Securities that provide, as
      of the effective date of such adjustment, for the issuance upon exercise
      or conversion thereof of an indeterminable number of shares of Common
      Stock shall (together with the shares of Common Stock issuable upon
      exercise or conversion thereof) be disregarded for purposes of the
      calculation of Common Stock Deemed Outstanding; provided, that at such
      time as a number of shares of Common Stock issuable upon exercise or
      conversion of such Options or Convertible Securities becomes determinable,
      then the Exercise Price shall be adjusted as provided in Section 7(a)(v).

                  (viii) Certain Issues of Common Stock Excepted.
      Notwithstanding anything herein to the contrary, no adjustment to the
      Exercise Price shall be made in the case of an issuance from and after the
      date hereof of (i) shares of Common Stock upon exercise of the Warrants;
      (ii) shares of Common Stock upon exercise of any warrants outstanding as
      of the date hereof; or (iii) shares of Common Stock or options or other
      rights therefor to directors, officers, employees or consultants of the
      Company in connection with their service as directors of the Company,
      their employment by the Company or their retention as consultants by the
      Company, in each case authorized by the Board of Directors and issued
      pursuant to the Company Stock Option Plans.

                  (ix) Miscellaneous. The adjustments required by the preceding
      paragraphs of this Section 7(a) shall be made whenever and as often as any
      specified event requiring an adjustment shall occur, except that no
      adjustment to the number of Warrant Shares issuable upon the exercise of
      each Warrant that would otherwise be required shall be made (except in the
      case of a Stock Dividend, Stock Subdivision or Stock Combination, as
      provided for in Section 7(a)(i) hereof) unless and until such adjustment
      either by itself or with other adjustments not previously made adds or
      subtracts at least one half of one share to or from the number of Warrant
      Shares issuable upon the exercise of such Warrant immediately prior to the
      making of such adjustment, or adds or subtracts at least one cent to or
      from the Exercise Price immediately prior to the making of such
      adjustment. Any adjustment to the number of Warrant Shares

                                       12
<PAGE>
      issuable upon the exercise of such Warrant or to the Exercise Price
      representing a change of less than such minimum amount (except as
      aforesaid) shall be carried forward and made as soon as such adjustment,
      together with other adjustments required by this Section 7(a) and not
      previously made, would result in a minimum adjustment. For the purpose of
      any adjustment, any specified event shall be deemed to have occurred at
      the close of business on the date of its occurrence.

            (b) Reorganization, Merger, etc.. In case at any time the Company
shall initiate any transaction or be a party to any transaction (including,
without limitation, a merger, consolidation, share exchange, sale, lease or
other disposition of all or substantially all of the Company's assets,
liquidation, recapitalization or reclassification of the Common Stock) in
connection with which the Common Stock shall be changed into or exchanged for
different securities of the Company or capital stock or other securities of
another corporation or interests in a non-corporate entity or other property
(including cash) or any combination of the foregoing (each such transaction
being herein called a "Transaction"), then, as a condition of the consummation
of such Transaction, lawful, enforceable and adequate provision shall be made so
that each Holder shall be entitled to elect by written notice to the Company to
receive (i) a new warrant in form and substance similar to, and in exchange for,
its Warrant(s) to purchase all or a portion of such securities or other
property, or (ii) upon exercise of its Warrant(s) at any time on or after the
consummation of the Transaction, in lieu of the shares of Common Stock issuable
upon such exercise prior to such consummation, the securities or other property
(including cash) to which such Holder would have been entitled upon consummation
of the Transaction if such Holder had exercised its Warrant(s) immediately prior
thereto (subject to adjustments from and after the consummation date as nearly
equivalent as possible to the adjustments provided for in this Section 7). The
Company will not effect any Transaction unless prior to the consummation thereof
each corporation or other entity (other than the Company) which may be required
to deliver any new warrant, securities or other property as provided herein
shall assume, by written instrument delivered to such Holder, the obligation to
deliver to such Holder such new warrant, securities or other property as in
accordance with the foregoing provisions such Holder may be entitled to receive,
and such corporation or entity shall have similarly delivered to such Holder
prior to the effectiveness of the Transaction an opinion of counsel for such
corporation or entity, reasonably satisfactory in form and substance to such
Holder, which opinion shall state that all of the terms of the new warrant or
the original Warrant shall be enforceable against the Company and such
corporation or entity in accordance with the terms hereof and thereof, together
with such other matters as such Holder may reasonably request. The foregoing
provisions of this Section 7(b) shall similarly apply to successive
Transactions.

            (c) Other Action Affecting Common Stock. In case at any time or from
time to time the Company shall take any action of the type contemplated in
Section 7(a) or (b) hereof but not expressly provided for by such provisions
(including, without limitation, the granting of stock appreciation rights,
phantom stock rights or other rights with equity features), then, unless in the
reasonable opinion of the Board of Directors such action will not have a
material adverse effect upon the rights of any Holder (taking into
consideration, if necessary, any prior actions which the Board of Directors
deemed not to materially adversely affect the rights of any Holder), the number
of Warrant Shares issuable upon the exercise of such Warrant shall be adjusted
in such manner and at such time as the Board of Directors may in good faith
determine to be equitable in the circumstances.

                                       13
<PAGE>
            (d) Notices.

                  (i) Notice of Proposed Actions. In case the Company shall
      propose (A) to pay any dividend payable in stock of any class to the
      holders of its Common Stock or to make any other distribution to the
      holders of its Common Stock, (B) to offer to the holders of its Common
      Stock rights to subscribe for or to purchase any Convertible Securities or
      additional shares of Common Stock or shares of stock of any class or any
      other securities or Options (other than Options issued pursuant to the
      Company Stock Option Plans), (C) to effect any reclassification of its
      Common Stock, (D) to effect any recapitalization, stock subdivision, stock
      combination or other capital reorganization, (E) to effect any
      consolidation or merger, share exchange, or sale, lease or other
      disposition of all or substantially all of its property, assets or
      business or (F) to effect the liquidation, dissolution or winding up of
      the Company, then in each such case the Company shall give to each Holder
      written notice of such proposed action, which written notice shall specify
      the record date for the purposes of such stock dividend, distribution or
      rights, or the date on which such reclassification, reorganization,
      consolidation, merger, share exchange, sale, transfer, disposition,
      liquidation, dissolution or winding up is to take place and the date of
      participation therein by the holders of Common Stock, if any such date is
      to be fixed, or the date on which the transfer of Common Stock is to
      occur, and shall also set forth such facts with respect thereto as shall
      be reasonably necessary to indicate the effect of such action on the
      Common Stock and on the number of Warrant Shares issuable upon the
      exercise of each Warrant after giving effect to any adjustment which will
      be required as a result of such action. Such notice shall be so given in
      the case of any action covered by clause (A) above at least thirty (30)
      days prior to the record date for determining holders of the Common Stock
      for purposes of such action and, in the case of any other such action, at
      least thirty (30) days prior to the earlier of the date of the taking of
      such proposed action or the date of participation therein by the holders
      of Common Stock.

                  (ii) Adjustment Notice. Whenever the number of Warrant Shares
      is to be adjusted pursuant to this Section 7, the Company shall forthwith
      obtain a certificate signed by the chief financial officer of the Company,
      setting forth, in reasonable detail, the event requiring the adjustment
      and the method by which such adjustment is to be calculated. The
      certificate shall set forth, if applicable, a description of the basis on
      which the Board of Directors determined, as applicable, the Fair Market
      Value Per Share, the fair market value (determined by the Board of
      Directors in good faith) of any evidences of indebtedness, shares of
      stock, other securities, warrants, other subscription or purchase rights,
      or other property or the equitable nature of any adjustment under Section
      7(b) or (c) hereof, the new number of Warrant Shares issuable upon the
      exercise of each Warrant and, if applicable, any new securities or
      property to which each respective Holder is entitled. The Company shall
      promptly cause a copy of such certificate to be delivered to each Holder
      within the time period set forth in the definition of Fair Market Value
      Per Share and each Holder may object thereto. The Company shall keep at
      its Principal Office copies of all such certificates and cause the same to
      be available for inspection at said office during normal business hours by
      any Holder or any prospective purchaser of a Warrant (in whole or in part)
      if so designated by a Holder.

                                       14
<PAGE>
            (e) No Change in Warrant Terms on Adjustment. Irrespective of any
adjustment in the Exercise Price and/or the number of Warrant Shares, each
Warrant may continue to express the same Exercise Price and number of Warrant
Shares as are stated therein and such Exercise Price and number of Warrant
Shares issuable upon the conversion thereof shall be deemed to have been
automatically so adjusted.

      SECTION 8. Transfers of Warrants.

            (a) Transfer and Exchanges. The Company shall initially record each
Warrant on a register to be maintained by the Company with its other stock books
and, subject to Section 8(b) hereof, from time to time thereafter shall transfer
each Warrant on such register when such Warrant is: (i) surrendered by the
Holder to the Company for transfer in accordance with the terms hereof, (ii)
properly endorsed by the Holder and accompanied by appropriate instructions, and
(iii) accompanied by payment in cash or by check, bank draft or money order
payable to the order of the Company, in United States currency, of an amount
equal to any stamp or other tax or governmental charge or fee required to be
paid in connection with the transfer thereof. Upon any such transfer, a new
Warrant or Warrants shall be issued to the transferee or transferees and, in the
event that such Warrant is only partially transferred, to the affected Holder,
and the surrendered Warrant shall be canceled. Each such transferee shall
succeed to all of the rights of the transferring Holder under this Agreement or
in the event that such Warrant is only partially transferred, the transferring
Holder and such transferee shall, simultaneously, hold rights hereunder in
proportion to the portions of the Warrant transferred and retained,
respectively.

            (b) Transfers Subject to Securities Laws; Stockholders Agreement.
Subject to the restrictions set forth in this Section 8, each Holder may at any
time and from time to time freely transfer its Warrant and Warrant Shares in
whole or in part. No Warrant has been, and the Warrant Shares at the time of
their issuance may not be, registered under the Securities Act, and, except as
provided in the Registration Rights Agreement, nothing herein contained shall be
deemed to require the Company to so register any Warrant or Warrant Shares. The
Warrants and the Warrant Shares are issued subject to the terms and conditions
contained herein and in the Purchase Agreement, and every Holder (and any
transferee or transferees of such Holder) by accepting any Warrant agrees to be
bound by such provisions and conditions and represents to the Company that such
Warrant has been acquired, and the Warrant Shares will be acquired, for the
account of such Holder for investment and not with a view to or for sale in
connection with any distribution thereof. Each certificate representing Warrant
Shares issued to a Holder upon exercise of a Warrant and each certificate
representing Warrant Shares issued to any subsequent transferee of any such
certificate, shall be stamped or otherwise imprinted with a legend in
substantially the form as follows:

      THIS WARRANT TO PURCHASE COMMON STOCK AND THE SHARES OF COMMON STOCK THAT
      MAY BE PURCHASED HEREUNDER HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
      ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR ANY STATE SECURITIES
      LAWS AND MAY NOT BE OFFERED, SOLD, TRANSFERRED, HYPOTHECATED OR OTHERWISE
      ASSIGNED EXCEPT (1) PURSUANT TO A REGISTRATION STATEMENT WITH RESPECT TO
      SUCH SECURITIES WHICH IS EFFECTIVE UNDER THE

                                       15
<PAGE>
      SECURITIES ACT OR TO AN AVAILABLE EXEMPTION FROM REGISTRATION UNDER THE
      ACT RELATING TO THE DISPOSITION OF SECURITIES AND (2) IN ACCORDANCE WITH
      APPLICABLE STATE SECURITIES LAWS.

      SECTION 9. Miscellaneous Injunctive Relief. On the occurrence of any
breach of this Agreement or any Warrant, each Holder may, at its option, and in
addition to all other remedies it may have otherwise or under applicable law,
(i) at the Company's expense, elect to have the Warrant Shares issuable upon the
exercise of such Warrant fully and completely recomputed, subject to adjustment
as provided herein, in order to remove and remedy any prejudice which has been
or might have been caused to it by such breach, including, without limitation,
rescinding and annulling any or all exercises of any Warrant, and waivers or
agreements made subsequent to such breach; and (ii) bring any action for
injunctive relief or specific performance of any term or covenant contained
herein or in any Warrant, the Company hereby acknowledging that an action for
money damages may not be adequate to protect the interests of the Holders
hereunder.

            (b) Survival of Provisions. Notwithstanding the full exercise by any
Holder of its Warrant(s), the provisions of this Agreement and each Warrant
shall survive such exercise.

            (c) Delays, Omissions and Indulgences. No delay or omission to
exercise any right, power or remedy accruing to any Holder upon any breach or
default of the Company hereunder or under any Warrant shall impair any such
right, power or remedy, nor shall it be construed to be a waiver of any such
breach or default, or any acquiescence therein, or of or in any similar breach
or default thereafter occurring; nor shall any waiver of any single breach or
default be deemed a waiver of any other breach or default theretofore or
thereafter occurring.

            (d) Amendment and Waiver. Any amendment, supplement or modification
of or to any provision of this Agreement, any waiver of any provision of this
Agreement, and any consent to any departure of the Company from the terms of any
provision of this Agreement, shall be effective (a) only if it is made or given
in writing and signed by the Company and each Holder affected by such amendment,
and (b) only in the specific instance and for the specific purpose for which
made or given. Any amendment, supplement, modification or waiver of or to any
provision of this Agreement with respect to an individual Holder shall apply
only to such Holder and shall not constitute an amendment, supplement,
modification or waiver with respect to any other Holder hereunder.

            (e) Rights of Transferees. The rights granted to the Holders
hereunder and under each Warrant shall pass to and inure to the benefit of all
subsequent transferees of all or any portion of a Warrant (provided that each
Holder and any transferee shall hold such rights in proportion to the amount of
such Warrant held by each party) until extinguished pursuant to the terms
hereof.

            (f) Section Headings. The titles and captions of the sections,
subsections and other provisions hereof are for convenience of reference only
and are not to be considered in construing this Agreement.

                                       16
<PAGE>
            (g) Notices. All notices and other communications provided for
hereunder shall be in writing and personally delivered, delivered by
nationally-recognized overnight courier, mailed, or sent by facsimile, if to the
Company or any Holder, to:

                  (i) if to the Company,

                      Evergreen Solar, Inc.
                      259 Cedar Hill Street
                      Marlboro, Massachusetts  01752
                      Attention: Richard G. Chleboski, Chief Financial Officer,
                                 Vice President, Treasurer and Secretary
                      Fax: (508) 357-2279

                  (ii) if to any Holder, to the address shown for such Holder on
      the Schedule or Purchasers attached as Exhibit A to the Purchase
      Agreement, marked for attention as there indicated.

or to such other address as the party to whom notice is to be given may have
furnished to the other in writing in accordance with the provisions of this
Section 9(g). Any such notice or communication will be deemed to have been
received: (A) in the case of telecopy or personal delivery, on the date of such
delivery; (B) in the case of nationally-recognized overnight courier, on the
next business day after the date sent; and (C) if by registered or certified
mail, on the third business day following the date postmarked.

            (h) Successors and Assigns. This Agreement shall be binding upon and
inure to the benefit of the parties hereto and their respective successors and
assigns, provided that the Company shall have no right to assign its rights, or
to delegate its obligations, hereunder without the prior written consent of each
Holder, except pursuant to a Transaction in which the surviving entity agrees in
writing to assume all of the covenants, liabilities and obligations of the
Company hereunder.

            (i) Severability. If any one or more of the provisions contained
herein, or the application thereof in any circumstance, is held invalid, illegal
or unenforceable in any respect for any reason, the validity, legality and
enforceability of any such provision in every other respect and of the remaining
provisions hereof shall not be in any way impaired, unless the provisions held
invalid, illegal or unenforceable shall substantially impair the benefits of the
remaining provisions hereof.

            (j) Governing Law. This Agreement shall be deemed to be a contract
made under, and shall be construed in accordance with, the laws of the Delaware,
without giving effect to conflict of laws principles thereof.

            (k) Counterparts. This Agreement may be executed simultaneously in
any number of counterparts, each of which when so executed and delivered shall
be taken to be an original; but such counterparts shall together constitute but
one and the same document.

                            [SIGNATURE PAGES FOLLOW]

                                       17
<PAGE>
      IN WITNESS WHEREOF, each party hereto has caused this Agreement to be duly
executed as of the date first above written.

                                         THE COMPANY:

                                         EVERGREEN SOLAR, INC.

                                         By: /s/ Richard M. Feldt
                                             -----------------------------------
                                             Name:  Richard M. Feldt
                                             Title: Chief Executive Officer and
                                                    President

                                         THE HOLDERS:

                                         LOEB PARTNERS CORPORATION,
                                         on behalf of its affiliated entities

                                         By:      /s/ Robert Grubin
                                                  -----------------
                                                  Name: Robert Grubin
                                                  Title: Vice-President

                                         LB I GROUP INC.

                                         By:      /s/ Fred E. Steinberg
                                                  ---------------------
                                                  Name: Fred E. Steinberg
                                                  Title: Vice-President

                                         ALEXANDRA GLOBAL MASTER FUND LTD.

                                         By:      /s/ Mikhail Filimonov
                                                  ---------------------
                                                  Name: Mikhail Filimonov
                                                  Title: Chairman

                                       18
<PAGE>
                                         OMICRON MASTER TRUST

                                         By:      Omicron Capital L.P., as
                                                  advisor
                                         By:      Omicron Capital Inc., its
                                                  general partner

                                         By:      /s/ Olivier Morali
                                                  ------------------
                                                  Name: Olivier Morali
                                                  Title: President

                                         SF CAPITAL PARTNERS LTD.

                                         By:      /s/ Michael A. Roth
                                                  -------------------
                                                  Name: Michael A. Roth
                                                  Title: Authorized Signatory

                                         GRACE BROTHERS, LTD

                                         By:      /s/ Bradford T. Whitmore
                                                  ------------------------
                                                  Name: Bradford T. Whitmore
                                                  Title: General Partner

                                         CRT CAPITAL GROUP LLC

                                         By:      /s/ Michael Vaughn
                                                  ------------------
                                                  Name: Michael Vaughn
                                                  Title: Managing Member

                                         TRUK OPPORTUNITY FUND, LLC

                                         By:      Atoll Asset Management, LLC

                                         By:      /s/ Michael E. Fein
                                                  -------------------
                                                  Name: Michael E. Fein
                                                  Title: Principal

                                         TRUK INTERNATIONAL FUND, LP

                                         By:      Atoll Asset Management, LLC

                                         By:      /s/ Michael E. Fein
                                                  -------------------
                                                  Name: Michael E. Fein
                                                  Title: Principal

                                       19
<PAGE>
                                         PORTSIDE GROWTH AND
                                         OPPORTUNITY FUND

                                         By:      /s/ Jeff Smith
                                                  --------------
                                                  Name: Jeff Smith
                                                  Title: Authorized Signatory

                                         MORGAN STANLEY AND CO.
                                         INTERNATIONAL LIMITED

                                         By:      /s/ Lars Lemonius
                                                  -----------------
                                                  Name: Lars Lemonius
                                                  Title: Authorized Signatory

                                         DOUBLE BLACK DIAMOND
                                         OFFSHORE LDC

                                         By:      Carlson Capital, L.P., its
                                                  investment advisor

                                         By:      Asgard Investment Corp., its
                                                  general partner

                                         By:      /s/ Clint D. Carlson
                                                  --------------------
                                                  Name: Clint D. Carlson
                                                  Title: President

                                         BLACKMORE PARTNERS LP

                                         By:      Amjac Capital Management, its
                                                  general partner

                                         By:      /s/ Jeffrey W. Priest
                                                  ---------------------
                                                  Name: Jeffrey W. Priest
                                                  Title: Managing Member

                                         BLACKMORE WALLACE PARTNERS LP

                                         By:      Amjac Capital Management, its
                                                  general partner

                                         By:      /s/ Jeffrey W. Priest
                                                  ---------------------
                                                  Name: Jeffrey W. Priest
                                                  Title: Managing Member

                                       20
<PAGE>
                                         BLACKMORE OFFSHORE FUND, LTD.

                                         By:      /s/ Jeffrey W. Priest
                                                  ---------------------
                                                  Name: Jeffrey W. Priest
                                                  Title: Portfolio Manager/
                                                         Investment Advisor

                                       21
<PAGE>
                                    EXHIBIT A

                               SCHEDULE OF HOLDERS

<TABLE>
<CAPTION>
NAME:                                                  NUMBER OF WARRANT SHARES:
-----                                                  -------------------------
<S>                                                    <C>
Loeb Partners Corporation                              287,356

LB I Group Inc.                                        574,713

Alexandra Global Master Fund Ltd.                      114,943

Omicron Master Trust                                   57,471

SF Capital Partners Ltd.                               172,414

Grace Brothers LTD                                     344,828

CRT Capital Group LLC                                  412,240

Truk Opportunity Fund, LLC                             41,850

Truk International Fund, LP                            3,150

Portside Opportunity and Growth Fund                   114,943

Morgan Stanley and Co. International Limited           114,943

Double Black Diamond Offshore LDC                      13,200

Blackmore Partners LP                                  6,900

Blackmore Wallace Partners, LP                         19,200

Blackmore Offshore Fund, Ltd.                          20,700

                             Total:                    2,298,851
</TABLE>

                                       22
<PAGE>
                                    EXHIBIT B

                                 FORM OF WARRANT

                  THIS COMMON STOCK PURCHASE WARRANT AND THE SHARES OF COMMON
                  STOCK THAT MAY BE PURCHASED HEREUNDER HAVE NOT BEEN REGISTERED
                  UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES
                  ACT"), OR ANY STATE SECURITIES LAWS AND MAY NOT BE OFFERED,
                  SOLD, TRANSFERRED, HYPOTHECATED OR OTHERWISE ASSIGNED EXCEPT
                  (1) PURSUANT TO A REGISTRATION STATEMENT WITH RESPECT TO SUCH
                  SECURITIES WHICH IS EFFECTIVE UNDER THE SECURITIES ACT OR TO
                  AN AVAILABLE EXEMPTION FROM REGISTRATION UNDER THE ACT
                  RELATING TO THE DISPOSITION OF SECURITIES AND (2) IN
                  ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS.

                              EVERGREEN SOLAR, INC.

                          COMMON STOCK PURCHASE WARRANT

                                  Number _____

      THIS IS TO CERTIFY that [______________] and its transferees, successors
and assigns (the "Holder"), for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, is entitled to purchase from
EVERGREEN SOLAR, INC., a Delaware corporation (the "Company"), at a price per
share equal to the Exercise Price, [______] fully paid and nonassessable shares
of the common stock, par value $0.01 per share, of the Company (the "Common
Stock"), subject to the terms and conditions of the Warrant Agreement, as
amended, supplemented or modified from time to time (the "Warrant Agreement"),
dated as of the date hereof, between the Company and the other parties thereto.
The Exercise Price and the number of shares of Common Stock subject to this
Warrant are subject to adjustment and readjustment from time to time as set
forth in Section 7 of the Warrant Agreement. Capitalized terms used herein shall
have the meanings ascribed to such terms in the Warrant Agreement.

      Payment of the Exercise Price may be made as set forth in Section 3 of the
Warrant Agreement.

                                       23
<PAGE>
      If this Warrant is not exercised on or before 5:00 p.m. Eastern time on
the Expiration Date, this Warrant shall become void and all rights hereunder
shall cease as of such time, except as provided in the Warrant Agreement.

      This Warrant is one of the Warrants issued pursuant to the Warrant
Agreement and is subject to, and entitled to the benefits of, all of the terms,
provisions and conditions of the Warrant Agreement, which Warrant Agreement is
hereby incorporated by reference herein and made a part hereof. This Warrant may
not be amended except as set forth in the Warrant Agreement. The Warrant
Agreement sets forth a full description of the rights, limitations of rights,
obligations, duties and immunities of the Company and the Holder with respect to
this Warrant. Copies of the Warrant Agreement are on file at the Principal
Office of the Company.

      IN WITNESS WHEREOF, the Company has caused this Warrant to be signed in
its name by its president and attested by its secretary, as of the 21st day of
June, 2004.

                                          EVERGREEN SOLAR, INC.

                                          By:___________________________________
                                          Name:_________________________________
                                          Title:________________________________

ATTEST:

By:___________________________
Name:_________________________
Title:   Secretary

[CORPORATE SEAL]

                                       24
<PAGE>
                                    EXHIBIT C

                           FORM OF NOTICE OF EXERCISE

To:   Evergreen Solar, Inc.

      1. The undersigned, pursuant to the provisions of the attached Warrant,
hereby elects to exercise such Warrant with respect to ________ shares of Common
Stock (the "Exercise Amount"). Capitalized terms used but not otherwise defined
herein have the meanings ascribed thereto in the attached Warrant.

      2. The undersigned herewith tenders payment for such shares in the
following manner (please check type, or types, of payment and indicate the
portion of the Exercise Price to be paid by each type of payment):

          ____   Exercise for Cash

          ____   Cashless Exercise

      3. Please issue a certificate or certificates representing the shares
issuable in respect hereof under the terms of the attached Warrant, as follows:

       _________________________________________________________________
                       (Name of Record Holder/Transferee)

and deliver such certificate or certificates to the following address:

       _________________________________________________________________

       _________________________________________________________________

       _________________________________________________________________

       _________________________________________________________________
                      (Address of Record Holder/Transferee)

      4. The undersigned represents that the aforesaid shares are being acquired
for the account of the undersigned for investment and not with a view to, or for
resale in connection

                                       25
<PAGE>
with, the distribution thereof and that the undersigned has no present intention
of distributing or reselling such shares.

      5. If the Exercise Amount is less than all of the shares of Common Stock
purchasable hereunder, please issue a new warrant representing the remaining
balance of such shares, as follows:

       _________________________________________________________________
                       (Name of Record Holder/Transferee)

and deliver such warrant to the following address:

       _________________________________________________________________

       _________________________________________________________________

       _________________________________________________________________
                      (Address of Record Holder/Transferee)

      In witness whereof, the undersigned Holder has caused this Notice of
Exercise to be executed as of this _____ day of __________, ______.

                                      __________________________________________
                                      (Name of Holder)

                                      By:_______________________________________

                                       26

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