Document:

Agreement and Plan of Merger

 EXECUTION VERSION 

CONFIDENTIAL 

CONFIDENTIAL TREATMENT REQUESTED 

REDACTED VERSION 
  

 
  

AGREEMENT AND PLAN OF MERGER 

by and among 

MEMC ELECTRONIC MATERIALS, INC., 

OSCAR ACQUISITION SUB, INC., 

SOLAICX, and 

SHAREHOLDER REPRESENTATIVE SERVICES LLC, as the Representative 

Dated as of May 21, 2010 
  

 
  

 INDEX OF DEFINED TERMS 

 

			
	 280G Approval
	  	73
	 Accounts Receivable
	  	39
	 Accredited Investor
	  	104
	 Acquisition Proposal
	  	76
	 Acquisition Subsidiary
	  	1
	 Act
	  	2
	 Action
	  	49
	 Adjusted Initial Merger Consideration
	  	6
	 Adjustment Amount
	  	20
	 Adverse Recommendation Change
	  	72
	 Affiliate
	  	104
	 Agents
	  	74
	 Aggregate Cap
	  	96
	 Aggregate Exercise Price Amount
	  	6, 13
	 Aggregate Preferred Stock Liquidation Preference Amount
	  	6
	 Aggregate Residual Amount
	  	6
	 Agreed Estimated Closing Statement
	  	17
	 Agreement
	  	1
	 Agreement of Merger
	  	2
	 AIQ Form
	  	23
	 Annual Financial Statements
	  	33
	 Articles
	  	29
	 Assets
	  	37
	 Auditor
	  	19
	 Balance Sheet
	  	33
	 Business Day
	  	104
	 California Audit
	  	83
	 Cash Election Percentage
	  	24
	 Certificates
	  	8
	 Closing
	  	3
	 Closing Balance Sheet
	  	18
	 Closing Date
	  	3
	 Closing Indebtedness
	  	18
	 Closing Net Working Capital
	  	18
	 Closing New Investment Adjustment Amount
	  	18
	 Closing Statement
	  	18
	 Closing Statement of Indebtedness
	  	18
	 Closing Statement of Net Working Capital
	  	18
	 Closing Statement of New Investment Adjustment Amount
	  	18
	 COBRA
	  	58
	 Code
	  	34
	 Common Stock
	  	5
	 Common Stock Exchange Amount
	  	8
	 Common Stock Warrant
	  	23
	 Company
	  	1

  

 ii 

			
	 Company Entities
	  	53
	 Company Fundamental Representations
	  	90
	 Company Indemnified Person
	  	79
	 Company Indemnified Persons
	  	79
	 Company Intellectual Property
	  	43
	 Company Intellectual Property Agreement
	  	45
	 Company Intellectual Property License
	  	45
	 Company Manufacturing Tools
	  	43
	 Company Material Adverse Effect
	  	104
	 Company Options
	  	9
	 Company Organizational Documents
	  	29
	 Company Recommendation
	  	72
	 Company Shareholder Approval
	  	32
	 Company Software
	  	43
	 Company Warrants
	  	10
	 Company’s Knowledge
	  	105
	 Confidentiality Agreement
	  	71
	 Contract
	  	42
	 Contracts
	  	42
	 Covered Employees
	  	78
	 Defense Notice
	  	94
	 Determination Date
	  	20
	 Dispute
	  	26
	 Dispute Notice
	  	26
	 Dispute Period
	  	26
	 Dissenting Shares
	  	15
	 Earnout Calculation Schedule
	  	23
	 Earnout Consideration
	  	23
	 Earnout Period
	  	23
	 Earnout Statement
	  	26
	 Effective Time
	  	2
	 Effects
	  	104
	 Election
	  	23
	 Election Deadline
	  	23
	 employee benefit plans
	  	60
	 Employee Inducement Grants
	  	85
	 Energy Credit Agreement
	  	36
	 Environmental Claim
	  	55
	 Environmental Laws
	  	53
	 Environmental Permits
	  	54
	 ERISA
	  	57
	 ERISA Plans
	  	57
	 Escrow Agent
	  	21
	 Estimated Closing Net Working Capital
	  	17
	 Estimated Closing Statement
	  	17
	 Estimated Indebtedness
	  	17

  

 iii 

			
	 Estimated New Investment Adjustment Amount
	  	17
	 Estimated Transaction Expenses
	  	22
	 Exchange Act
	  	105
	 Exchange Agent
	  	16
	 Exchange Agent Agreement
	  	16
	 Exchange Fund
	  	16
	 Expense Escrow Agreement
	  	28
	 Expense Escrow Amount
	  	3
	 Expense Escrow Fund
	  	28
	 Final Closing Indebtedness
	  	20
	 Final Closing Net Working Capital
	  	20
	 Final Closing New Investment Adjustment Amount
	  	20
	 Final Determination
	  	26
	 Final Determination Date
	  	26
	 Financial Statements
	  	33
	 Form of Election
	  	23
	 Fully Diluted Company Share Amount
	  	7, 13
	 GAAP
	  	17
	 General Cap
	  	96
	 Government
	  	17
	 Government Contracts
	  	63
	 Governmental Authorization
	  	52
	 Hazardous Materials
	  	54
	 Hazardous Materials Activities
	  	53
	 HIPAA
	  	58
	 HSR Act
	  	32
	 Income Taxes
	  	82
	 Indebtedness
	  	105
	 Indebtedness Adjustment Amount
	  	20
	 Indemnification Escrow Account
	  	21
	 Indemnification Escrow Agreement
	  	21
	 Indemnification Escrow Amount
	  	21
	 Indemnification Escrow Release Amount
	  	3
	 Indemnification Threshold
	  	96
	 Indemnified Losses
	  	91
	 Indemnified Party
	  	94
	 Indemnifying Party
	  	94
	 Individual Cap
	  	96
	 Inducement Grant Plan
	  	85
	 Information Statement
	  	72
	 Initial Merger Consideration
	  	4
	 Intellectual Property
	  	43
	 Interim Financials
	  	33
	 Investment Adjustment Amount
	  	20
	 IRS
	  	89
	 Law
	  	52

  

 iv 

			
	 Leased Real Property
	  	38
	 Letter of Transmittal
	  	16
	 Lien
	  	32
	 Lock-Up Agreement
	  	23
	 Losses
	  	91
	 made available
	  	106
	 Management Carveout Plan
	  	84
	 Merger
	  	1
	 Merger Consideration
	  	3
	 Net Working Capital
	  	106
	 Net Working Capital Adjustment Amount
	  	20
	 New Investment Adjustment Amount
	  	106
	 NLRA
	  	57
	 Non-Competition and Confidentiality Agreements
	  	2
	 off-balance sheet arrangements
	  	33
	 Order
	  	49
	 Ordinary Course of Business
	  	34
	 Owned Software
	  	43
	 Parent
	  	1
	 Parent Cap
	  	97
	 Parent Capital Stock
	  	65
	 Parent Common Stock
	  	65
	 Parent Common Stock Value
	  	25
	 Parent Financials
	  	66
	 Parent Fundamental Representations
	  	90
	 Parent Indemnified Persons
	  	91
	 Parent Material Adverse Effect
	  	107
	 Parent SEC Documents
	  	65
	 Parties
	  	1
	 Party
	  	1
	 Patents
	  	43
	 Payment Event
	  	109
	 PBGC
	  	59
	 Permits
	  	52
	 Person
	  	107
	 Plan
	  	57
	 Plans
	  	57
	 Positive Working Capital Adjustment
	  	3
	 Post-Execution Investment Amount
	  	107
	 Pre-Closing Tax Period
	  	81
	 Preferred Stock Warrant
	  	23
	 Preliminary Earnout Consideration
	  	26
	 Property
	  	37
	 Public Software
	  	44
	 Qualifying Acquisition Proposal
	  	109
	 Real Property Leases
	  	38

  

 v 

			
	 Release
	  	54
	 Remaining Payments
	  	99
	 Representative
	  	27
	 Scheduled Company Intellectual Property
	  	44
	 Scheduled Indemnity Matters
	  	92
	 SEC
	  	107
	 Securities Act
	  	107
	 Securityholder
	  	107
	 Securityholder Claim
	  	108
	 Securityholder’s Percentage
	  	108
	 Series 1 Preferred Stock
	  	5
	 Series 1 Preferred Stock Exchange Amount
	  	8
	 Series 2 Preferred Stock
	  	4
	 Series 2 Preferred Stock Exchange Amount
	  	8
	 Series 2 Preferred Stock Liquidation Preference Amount
	  	8
	 Seris 1 Preferred Stock Liquidation Preference Amount
	  	8
	 Share
	  	30
	 Shareholder
	  	108
	 Shareholder Indemnified Persons
	  	93
	 Shares
	  	30
	 Side Agreement
	  	1
	 Software
	  	44
	 Spreadsheet
	  	15
	 Statement
	  	89
	 Statement of Estimated Transaction Expenses
	  	22
	 Stock Election
	  	24
	 Stock Election Percentage
	  	23
	 Straddle Period
	  	82
	 Subsequent SEC Documents
	  	65
	 Subsidiary
	  	30
	 Superior Proposal
	  	76
	 Surviving Company
	  	2
	 Surviving Company Organizational Documents
	  	26
	 Tail Policy
	  	79
	 Takeover Statute
	  	64
	 Target Net Working Capital
	  	108
	 Tax
	  	37
	 Tax Attributes
	  	36
	 Tax Returns
	  	37
	 Taxes
	  	37
	 Termination Fee
	  	109
	 Third Party
	  	76
	 Third Party Intellectual Property License
	  	45
	 Third Person
	  	94
	 Third Person Claim
	  	94
	 Transaction Expenses
	  	108

  

 vi 

			
	 Transaction Payroll Taxes
	  	106
	 Voting Agreement
	  	1
	 Warrantholder
	  	109

  

 vii 

 Table of Contents 

 

					
	 	  	 	  	 Page

		
	 Article 1 THE MERGER
	  	2
	 1.1
	  	 Merger and Effect of Merger
	  	2
	 1.2
	  	 Method of Effecting Merger; Closing
	  	2
	 1.3
	  	 Conversion of Acquisition Subsidiary Capital Stock
	  	3
	 1.4
	  	 Merger Consideration
	  	3
	 1.5
	  	 Effect on Shares
	  	4
	 1.6
	  	 Treatment of Options and Certain Warrants
	  	9
	 1.7
	  	 Initial Merger Consideration True-Up Adjustment
	  	13
	 1.8
	  	 Dissenters Shares
	  	15
	 1.9
	  	 Closing Payment Mechanics
	  	15
	 1.10
	  	 Post-Closing Adjustment to Merger Consideration
	  	17
	 1.11
	  	 Escrow
	  	21
	 1.12
	  	 Payment Mechanics of Transaction Expenses
	  	22
	 1.13
	  	 Earnout
	  	23
	 1.14
	  	 Organizational Documents of the Surviving Company
	  	26
	 1.15
	  	 Directors and Officers of the Surviving Company
	  	27
	 1.16
	  	 Securityholders’ Representative; Actions
	  	27
		
	 Article 2 REPRESENTATIONS AND WARRANTIES OF THE COMPANY
	  	29
	 2.1
	  	 Organization, Qualification and Power
	  	29
	 2.2
	  	 Subsidiaries
	  	30
	 2.3
	  	 Capitalization and Related Matters
	  	30
	 2.4
	  	 Authorization; Enforceability; Noncontravention
	  	31
	 2.5
	  	 Financial Statements
	  	33
	 2.6
	  	 Books and Records; Business Practices and Financial Controls
	  	33
	 2.7
	  	 No Undisclosed Liabilities
	  	34
	 2.8
	  	 Taxes
	  	34
	 2.9
	  	 Assets and Real Property
	  	37
	 2.10
	  	 Necessary Property
	  	39
	 2.11
	  	 Accounts Receivable; Inventories
	  	39
	 2.12
	  	 Contracts and Commitments
	  	40
	 2.13
	  	 Validity of Contracts
	  	42
	 2.14
	  	 Intellectual Property
	  	43
	 2.15
	  	 Litigation
	  	49
	 2.16
	  	 Insurance
	  	49
	 2.17
	  	 Absence of Certain Changes
	  	49
	 2.18
	  	 No Breach of Law or Governing Document; Licenses and Permits
	  	52
	 2.19
	  	 Transactions with Related Persons; Outside Interests
	  	53
	 2.20
	  	 Bank Accounts
	  	53
	 2.21
	  	 Environmental Matters
	  	53
	 2.22
	  	 Officers, Directors, Employees, Consultants and Agents; Compensation
	  	55

  

 viii 

					
	 2.23
	  	 Labor Matters
	  	56
	 2.24
	  	 Employee Benefit Matters
	  	57
	 2.25
	  	 Overtime, Back Wages, Vacation and Minimum Wage
	  	60
	 2.26
	  	 Discrimination and Occupational Safety and Health
	  	60
	 2.27
	  	 Customers and Suppliers
	  	61
	 2.28
	  	 Product Liability Claims
	  	61
	 2.29
	  	 Product and Service Warranties
	  	61
	 2.30
	  	 Product Safety Authorities
	  	62
	 2.31
	  	 Foreign Operations and Export Control
	  	62
	 2.32
	  	 Customs
	  	63
	 2.33
	  	 Government Contracts
	  	63
	 2.34
	  	 Restrictions on Business Activities
	  	63
	 2.35
	  	 Brokers, Finders
	  	64
	 2.36
	  	 Takeover Statutes
	  	64
	 2.37
	  	 Investment Company
	  	64
	 2.38
	  	 Information Statement
	  	64
	 2.39
	  	 Accredited Investors
	  	64
		
	 Article 3 REPRESENTATIONS AND WARRANTIES OF PARENT AND ACQUISITION SUBSIDIARY
	  	64
	 3.1
	  	 Organization; Authorization; No Conflict
	  	64
	 3.2
	  	 Capitalization
	  	65
	 3.3
	  	 Consents
	  	65
	 3.4
	  	 SEC Documents; Financial Statements
	  	65
	 3.5
	  	 Brokers, Finders
	  	66
	 3.6
	  	 Financing
	  	66
	 3.7
	  	 Litigation
	  	66
	 3.8
	  	 Information Statement
	  	66
	 3.9
	  	 Absence of Certain Changes or Events
	  	66
	 3.10
	  	 Interim Operations of Acquisition Subsidiary
	  	67
		
	 Article 4 COVENANTS OF THE COMPANY
	  	67
	 4.1
	  	 Conduct of Business of the Company
	  	67
	 4.2
	  	 Notification of Certain Matters
	  	70
	 4.3
	  	 Access to Information
	  	71
	 4.4
	  	 Reasonable Best Efforts; Cooperation
	  	71
	 4.5
	  	 Company Shareholder Approval
	  	72
	 4.6
	  	 Takeover Statutes
	  	74
	 4.7
	  	 No Solicitation
	  	74
	 4.8
	  	 Securityholder Litigation
	  	77
	 4.9
	  	 SAS 100 Review
	  	77
		
	 Article 5 COVENANTS OF PARENT
	  	77
	 5.1
	  	 Notification of Certain Matters
	  	77
	 5.2
	  	 Reasonable Best Efforts; Cooperation
	  	78
	 5.3
	  	 Benefits Covenant
	  	78
	 5.4
	  	 Directors and Officers
	  	79
	 5.5
	  	 Subsidiary Compliance
	  	80

  

 ix 

					
		
	 Article 6 ADDITIONAL COVENANTS
	  	80
	 6.1
	  	 Certain Filings
	  	80
	 6.2
	  	 Public Announcements; Confidentiality
	  	81
	 6.3
	  	 Further Assurances
	  	81
	 6.4
	  	 Taxes
	  	81
	 6.5
	  	 Information Statement
	  	84
	 6.6
	  	 Company Employee Carve-Out Plan; Parent Inducement Plan
	  	84
	 6.7
	  	 New Investment Adjustment Amount; Post-Execution Investment Amount Payoff; Certain Payoff Letters
	  	85
		
	 Article 7 CONDITIONS PRECEDENT
	  	85
	 7.1
	  	 Conditions to Each Party’s Obligations
	  	85
	 7.2
	  	 Conditions to Obligations of the Company
	  	86
	 7.3
	  	 Conditions to Obligations of Parent and Acquisition Subsidiary
	  	87
		
	 Article 8 INDEMNIFICATION
	  	90
	 8.1
	  	 Survival of Representations and Warranties and Covenants
	  	90
	 8.2
	  	 Indemnification of Parent Indemnified Persons
	  	91
	 8.3
	  	 Indemnification of the Securityholders
	  	93
	 8.4
	  	 Notice of Claim
	  	94
	 8.5
	  	 Right to Contest Claims of Third Persons
	  	94
	 8.6
	  	 Limitations on Indemnity
	  	96
	 8.7
	  	 Exclusive Remedy
	  	99
		
	 Article 9 TERMINATION
	  	100
	 9.1
	  	 Termination
	  	100
		
	 Article 10 MISCELLANEOUS PROVISIONS
	  	102
	 10.1
	  	 Notice
	  	102
	 10.2
	  	 Entire Agreement
	  	103
	 10.3
	  	 Assignment; Binding Agreement
	  	103
	 10.4
	  	 Counterparts
	  	103
	 10.5
	  	 Headings; Interpretation
	  	103
	 10.6
	  	 Definitions
	  	104
	 10.7
	  	 Expenses
	  	109
	 10.8
	  	 Remedies Cumulative
	  	110
	 10.9
	  	 Specific Performance
	  	110
	 10.10
	  	 Governing Law
	  	110
	 10.11
	  	 Submission to Jurisdiction; Waivers
	  	110
	 10.12
	  	 No Waiver
	  	111
	 10.13
	  	 Severability
	  	111
	 10.14
	  	 Amendments
	  	111
	 10.15
	  	 No Third Party Beneficiaries
	  	111

  

 x 

					
	 Exhibits
	  	 	  	 
	Exhibit A	  	Side Agreements	  	
	Exhibit B	  	Voting Agreements	  	
	Exhibit C	  	Non-Competition and Confidentiality Agreements	  	
	Exhibit D	  	Form of Agreement of Merger	  	
	Exhibit E	  	Form of Letter of Transmittal	  	
	Exhibit F	  	Form of Indemnification Escrow Agreement	  	
	Exhibit G	  	Form of Election	  	
	Exhibit H	  	AIQ Form	  	
	Exhibit I	  	Form of Lock-Up Agreement	  	
	Exhibit J	  	Certificate of Incorporation of Surviving Company	  	
	Exhibit K	  	Bylaws of Surviving Company	  	
	Exhibit L	  	Management Carve-Out Plan	  	
	Exhibit M	  	Form of Inducement Grant Agreement	  	

  

 xi 

 CONFIDENTIAL 

CONFIDENTIAL TREATMENT REQUESTED 

REDACTED VERSION 

AGREEMENT AND PLAN OF MERGER 

THIS AGREEMENT AND PLAN OF MERGER (this “Agreement”) is entered into as of May 21, 2010, by and among MEMC
Electronic Materials, Inc., a Delaware corporation (“Parent”), Oscar Acquisition Sub, Inc., a California corporation and direct and wholly owned subsidiary of Parent (“Acquisition Subsidiary”), Solaicx, a California
corporation (the “Company”), and Shareholder Representative Services LLC, a Colorado limited liability company, solely in its capacity as the initial Representative. Parent, Acquisition Subsidiary, the Company and the Representative
are referred to herein each as a “Party” and together as the “Parties.” 
 RECITALS 

 A. The Board of Directors of the Company has unanimously approved the merger (the “Merger”) of Acquisition
Subsidiary with and into the Company in accordance with the terms and conditions of this Agreement and determined that the Merger is advisable and in the best interests of its Shareholders and has approved and declared advisable this Agreement, the
Agreement of Merger (as defined herein) and the transactions contemplated hereby. 
 B. The Board of Directors of Parent and the
Board of Directors of Acquisition Subsidiary have unanimously approved the Merger of Acquisition Subsidiary with and into the Company in accordance with the terms and conditions of this Agreement and have determined that the Merger is advisable and
in the best interests of the shareholder of Acquisition Subsidiary and the stockholders of Parent, and the Board of Directors of Parent and the Board of Directors of Acquisition Subsidiary have approved and declared advisable this Agreement, the
Agreement of Merger and the transactions contemplated hereby. 
 C. The Company, Acquisition Subsidiary, the Representative and
Parent desire to make certain representations, warranties and agreements in connection with, and establish various conditions precedent to, the Merger. 

D. As a condition and inducement to Parent and Acquisition Subsidiary entering into this Agreement, concurrently with the execution and
delivery of this Agreement, certain Shareholders have entered into a Side Agreement dated as of the date hereof and attached hereto as Exhibit A (the “Side Agreement”) pursuant to which such Shareholders have agreed
(severally and jointly) to, among other things, make certain representations, indemnities and covenants and certain releases for the benefit of Parent and Acquisition Subsidiary. 

E. As a condition and inducement to Parent and Acquisition Subsidiary entering into this Agreement, concurrently with the execution and
delivery of this Agreement, the officers and directors of the Company and certain Securityholders have entered into a Voting Agreement dated as of the date hereof and attached hereto as Exhibit B (the “Voting Agreement”)
pursuant to which each director, officer and certain Securityholders agreed to vote in favor of approval of this Agreement and the transactions contemplated hereby and to take certain other actions in furtherance of the consummation of the Merger
upon the terms and subject to the conditions set forth in the Voting Agreement. 

 CONFIDENTIAL 

CONFIDENTIAL TREATMENT REQUESTED 

REDACTED VERSION 
  

 F. As a condition and inducement to Parent and Acquisition Subsidiary entering into this
Agreement, concurrently with the execution and delivery of this Agreement, certain employees of the Company have entered into non-competition and confidentiality agreements dated as of the date hereof and attached hereto as Exhibit C (the
“Non-Competition and Confidentiality Agreements”). 
 NOW, THEREFORE, in consideration of the recitals and the
mutual covenants, representations, warranties, conditions, and agreements hereinafter expressed, the Parties agree as follows: 

ARTICLE 1 

THE MERGER 

1.1 Merger and Effect of Merger. 

(a) The constituent entities of the Merger are the Company and Acquisition Subsidiary. 

(b) Upon the terms and subject to the conditions hereof, and in accordance with the California Corporations Code (the
“Act”), at the Effective Time, Acquisition Subsidiary shall be merged into the Company and the separate existence of Acquisition Subsidiary thereupon shall cease. The Company shall be the Surviving Company in the Merger (the
“Surviving Company”), and the separate existence of the Company, with all its rights, privileges, powers and franchises, shall continue unaffected and unimpaired by the Merger. 

(c) At and after the Effective Time, the Surviving Company shall possess all the rights, privileges, powers and franchises and be subject
to all the restrictions, disabilities and duties of both Acquisition Subsidiary and the Company, as provided more particularly in the Act. 

1.2 Method of Effecting Merger; Closing. 

The Merger shall be effected as follows: 

(a) The Company and Acquisition Subsidiary shall each execute an Agreement of Merger and related officers’ certificate in
substantially the forms set forth in Exhibit D (the “Agreement of Merger”) and the Company shall cause the Agreement of Merger to be filed and recorded on the Closing Date (as hereinafter defined) with the Secretary of State
of California in accordance with the applicable provisions of the Act. The Merger shall thereupon become effective and be consummated immediately upon the later of the acceptance of such filing by the Secretary of State of California or at such
later time as may be mutually agreed by Parent, the Company and Acquisition Subsidiary and specified in the Agreement of Merger in accordance with the Act (the “Effective Time”). 

 

 2 

 CONFIDENTIAL 

CONFIDENTIAL TREATMENT REQUESTED 

REDACTED VERSION 
  

 (b) Subject to the satisfaction or waiver of all conditions to Closing set forth in
Article 7 hereof, the closing of the Merger (the “Closing”) shall take place at the offices of Wilson Sonsini Goodrich & Rosati, Palo Alto, California, at 8:00 a.m., Pacific time, on a date that is within two
(2) Business Days immediately following the satisfaction or waiver (if permitted hereunder and by applicable Law) of all conditions to Closing set forth in Article 7 hereof, other than those conditions which by their terms are to be
satisfied at the Closing, but subject to the satisfaction or waiver (if permitted hereunder and by applicable Law) of such conditions at the Closing) or at such other time and/or on such other date as Parent and the Company may agree in writing (the
“Closing Date”). 
 1.3 Conversion of Acquisition Subsidiary Capital Stock. At the Effective Time, by
virtue of the Merger and without any action on the part of any holder thereof, the issued and outstanding capital stock of Acquisition Subsidiary shall be converted into one validly issued, fully paid and nonassessable share of common stock in the
Surviving Company and, upon surrender of the certificate or certificates representing such common stock of Acquisition Subsidiary, the Surviving Company shall promptly issue to Parent or its designated Affiliate a certificate representing the common
stock in the Surviving Company into which it has been converted. After the Effective Time such share of common stock shall be the only issued and outstanding equity interest of the Surviving Company and shall be owned by Parent or its designated
Affiliate. 
 1.4 Merger Consideration. 

(a) For purposes of this Agreement, the “Merger Consideration” shall be calculated as follows: 

(i) Initial Cash Payment. Fifty-Two Million Six Hundred Fifty-Eight Thousand Dollars ($52,658,000.00) in cash; plus

 (ii) Escrow Release. Any cash amounts released from the Indemnification Escrow Account and delivered to
the Securityholders upon the expiration of the Indemnification Escrow Account (the “Indemnification Escrow Release Amount”); plus 

(iii) Expense Escrow Amount Deposit. $1,000,000 in cash, to be deposited in the Expense Escrow Fund at the Closing
and distributed in accordance with the terms hereof and the terms of the Expense Escrow Agreement (the “Expense Escrow Amount”); and 

(iv) Net Working Capital Adjustment. (x) less an amount in cash equal to the amount, if any, by which
the Net Working Capital as of the Closing is less than the Target Net Working Capital, or (y) plus an amount in cash equal to the amount, if any, by which the Net Working Capital as of the Closing is greater than the Target Net Working
Capital (the “Positive Net Working Capital Adjustment”); less 
  

 3 

 CONFIDENTIAL 

CONFIDENTIAL TREATMENT REQUESTED 

REDACTED VERSION 
  

 (v) Indebtedness Adjustment. An amount in cash equal to the
aggregate amount of any Indebtedness of the Company as of immediately prior to the Effective Time, less 

(vi) Transaction Expense Adjustment. An amount in cash equal to the aggregate amount of Transaction Expenses;
plus 
 (vii) New Investment Adjustment. An amount in cash equal to the New Investment Adjustment
Amount, if any, less the amount of the Positive Net Working Capital Adjustment, provided that such amount shall not be less than zero, if any; plus 

(viii) Earnout Consideration. The amount, if any, of the Earnout Consideration, which shall be paid, if at all, at
the time and in the manner set forth in Section 1.13. 
 (b) The Merger Consideration shall be subject to adjustment
as described in Section 1.10 and as otherwise provided for in this Agreement. For purposes of calculating the Merger Consideration payable at the Closing, the Parties have agreed to include estimates of the Closing Net Working Capital,
the Closing Indebtedness and the Closing New Investment Adjustment Amount, each as set forth on the Agreed Estimated Closing Statement and an estimate of the Transaction Expenses, as forth on Statement of Estimated Transaction Expenses in accordance
with Section 1.12(a). As adjusted using such estimates, the Merger Consideration set forth above (excluding the Indemnification Escrow Release Amount, the Expense Escrow Amount, the amount of any Earnout Consideration and the final
adjustment amounts pursuant to Section 1.10(d)) shall be referred to herein as the “Initial Merger Consideration.” Illustrative examples of such calculation are set forth on Schedule 1.4(b). 

(c) Any net positive adjustment to the Initial Merger Consideration for the Net Working Capital Adjustment Amount, the Indebtedness
Adjustment Amount and/or the Investment Adjustment Amount shall be paid in cash, and any net negative adjustment to the Initial Merger Consideration for the Net Working Capital Adjustment Amount, the Indebtedness Adjustment Amount and/or the
Investment Adjustment Amount shall be distributed from the Indemnification Escrow Fund. 
 1.5 Effect on Shares.

 (a) Subject to the terms of this Section 1.5, at the Effective Time, by virtue of the Merger and without any
action on the part of any holder thereof, 
 (i) each Share of Series 2 Preferred Stock of the Company
(“Series 2 Preferred Stock”) issued and outstanding immediately prior to the Effective Time (other than Shares to be cancelled pursuant to and in accordance with Section 1.5(c) and Dissenting Shares, if any) shall be
converted into and become the right to receive: 
 (A) an amount in cash equal to the Series 2 Preferred Stock
Exchange Amount, plus an amount, if any, payable in respect of each share of Series 2 Preferred Stock pursuant to the terms of Section 1.7; plus 
  

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 (B) an amount in cash, if any, as is payable with respect thereto in
accordance with the provisions of Section 1.10(d)(iii) hereof; plus 
 (C) an amount in cash, if any,
as is payable with respect thereto in accordance with the terms of Section 1.11 hereof and the Indemnification Escrow Agreement; plus 

(D) an amount in cash and (if applicable) shares of Parent Common Stock, if any, as is payable and/or issuable with
respect to the Earnout Consideration pursuant to and in accordance with the terms of Section 1.13 hereof; plus 

(E) an amount in cash, if any, as is payable with respect thereto in accordance with Section 1.16(e) hereof
and the Representative Expense Escrow Agreement. 
 (ii) each Share of Series 1 Preferred Stock of the Company
(“Series 1 Preferred Stock”) issued and outstanding immediately prior to the Effective Time (other than Shares to be cancelled pursuant to and in accordance with Section 1.5(c) and Dissenting Shares, if any) shall be
converted into and become the right to receive: 
 (A) an amount in cash equal to the Series 1 Preferred Stock
Exchange Amount, plus an amount, if any, payable in respect of each share of Series 1 Preferred Stock pursuant to the terms of Section 1.7; plus 

(B) an amount in cash, if any, as is payable with respect thereto in accordance with the provisions of
Section 1.10(d)(iii) hereof; plus 
 (C) an amount in cash, if any, as is payable with respect
thereto in accordance with the terms of Section 1.11 hereof and the Indemnification Escrow Agreement; plus 

(D) an amount in cash and (if applicable) shares of Parent Common Stock, if any, as is payable and/or issuable with
respect to the Earnout Consideration pursuant to and in accordance with the terms of Section 1.13 hereof; plus 

(E) an amount in cash, if any, as is payable with respect thereto in accordance with Section 1.16(e) hereof
and the Representative Expense Escrow Agreement. 
 (iii) each Share of Common Stock of the Company
(“Common Stock”) issued and outstanding immediately prior to the Effective Time (other than Shares to be cancelled pursuant to and in accordance with Section 1.5(c) and Dissenting Shares, if any) shall be converted into
and become the right to receive: 
 (A) an amount in cash equal to the Common Stock Exchange Amount, plus an
amount, if any, payable in respect of each share of Common Stock pursuant to the terms of Section 1.7; plus 
  

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 (B) an amount in cash, if any, as is payable with respect thereto in
accordance with the provisions of Section 1.10(d)(iii) hereof; plus 
 (C) an amount in cash, if any,
as is payable with respect thereto in accordance with the terms of Section 1.11 hereof and the Indemnification Escrow Agreement; plus 

(D) an amount in cash as is payable with respect thereto as Earnout Consideration, if any, pursuant to and in accordance
with the terms of Section 1.13 hereof; plus 
 (E) an amount in cash, if any, as is payable with
respect thereto in accordance with Section 1.16(e) hereof and the Representative Expense Escrow Agreement. 
 (b)
For purposes of Section 1.5(a) of this Agreement: 
 (i) “Adjusted Initial Merger
Consideration” shall mean an amount equal to the sum of (x) Initial Merger Consideration and (y) the Aggregate Exercise Price Amount. 

(ii) “Aggregate Exercise Price Amount” shall mean the aggregate dollar amount payable to the Company as
the purchase price for the exercise of (i) each Company Option which remains outstanding and unexercised as of immediately prior to the Effective Time with a per share exercise price that is less than $3.00, and (ii) each Company Warrant
which remains outstanding and unexercised as of immediately prior to the Effective Time with a per share exercise price that is less than $3.00. 

(iii) “Aggregate Residual Amount” shall mean an amount equal to (x) the Adjusted Initial Merger
Consideration, less (y) the Aggregate Preferred Stock Liquidation Preference Amount. 
 (iv)
“Aggregate Preferred Stock Liquidation Preference Amount” shall mean the sum of: 
 (A) the
product obtained by multiplying (x) the Series 1 Preferred Stock Liquidation Preference Amount by (y) the sum of (I) the aggregate number of shares of Series 1 Preferred Stock outstanding as of immediately prior to the Effective Time
and (II) the aggregate number of shares of Series 1 Preferred Stock issuable upon the exercise in full of each Company Warrant which (1) is exercisable for shares of Series 1 Preferred Stock (2) remains outstanding and unexercised as of
immediately prior to the Effective Time and (3) has a per share exercise price that is less than $3.00; plus 
  

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 (B) the product obtained by multiplying (x) the Series 2 Preferred
Stock Liquidation Preference Amount by (y) the sum of (I) the aggregate number of shares of Series 2 Preferred Stock outstanding as of immediately prior to the Effective Time and (II) the aggregate number of shares of Series 2 Preferred
Stock issuable upon the exercise in full of each Company Warrant which (1) is exercisable for shares of Series 2 Preferred Stock (2) remains outstanding and unexercised as of immediately prior to the Effective Time and (3) has a per
share exercise price that is less than $3.00. 
 (v) “Fully Diluted Company Share Amount” shall
mean the sum (without duplication) of the following: 
 (A) the aggregate number of shares of Common Stock
outstanding as of immediately prior to the Effective Time; 
 (B) the aggregate number of shares of Common Stock
issuable upon the conversion in full of any and all shares of Series 1 Preferred Stock outstanding as of immediately prior to the Effective Time; 

(C) the aggregate number of shares of Common Stock issuable upon the conversion in full of any and all shares of Series 2
Preferred Stock outstanding as of immediately prior to the Effective Time; 
 (D) the aggregate number of shares
of Common Stock issuable upon the exercise in full of each Company Option which remains outstanding and unexercised as of immediately prior to the Effective Time with a per share exercise price that is less than $3.00; 

(E) the aggregate number of shares of Common Stock issuable upon the exercise in full of each Company Warrant which
(1) is exercisable for shares of Common Stock (2) remains outstanding and unexercised as of immediately prior to the Effective Time and (3) has a per share exercise price that is less than $3.00; and 

(F) the aggregate number of shares of Common Stock issuable upon the conversion in full of all shares of Series 1
Preferred Stock issuable upon the exercise in full of each Company Warrant which (1) is exercisable for shares of Series 1 Preferred Stock (2) remains outstanding and unexercised as of immediately prior to the Effective Time and
(3) has a per share exercise price that is less than $3.00. 
 (G) the aggregate number of shares of Common
Stock issuable upon the conversion in full of all Shares of Series 2 Preferred Stock issuable upon the exercise in full of each Company Warrant which (1) is exercisable for shares of Series 2 Preferred Stock (2) remains outstanding and
unexercised as of immediately prior to the Effective Time and (3) has a per share exercise price that is less than $3.00. 
  

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 (vi) “Common Stock Exchange Amount” shall mean an
amount equal to the quotient obtained by dividing (x) the Aggregate Residual Amount, by (y) the Fully Diluted Company Share Amount. 

(vii) “Series 1 Preferred Stock Exchange Amount” shall mean an amount equal to the sum of (i) the
Series 1 Preferred Stock Liquidation Preference Amount, and (ii) Common Stock Exchange Amount. 
 (viii)
“Series 1 Preferred Stock Liquidation Preference Amount” shall mean $2.592. 
 (ix)
“Series 2 Preferred Stock Exchange Amount” shall mean an amount equal to the sum of (i) the Series 2 Preferred Stock Liquidation Preference Amount, and (ii) Common Stock Exchange Amount. 

(x) “Series 2 Preferred Stock Liquidation Preference Amount” shall mean $1.80. 

An illustrative example of the calculations set forth in this Section 1.5 (based on the estimates of the applicable amounts as of the date
hereof) is attached hereto as Schedule 1.5. 
 (c) Any and all unpaid dividends (accrued but unpaid, declared but unpaid
or otherwise) on the Shares immediately prior to the Effective Time shall be canceled at the Effective Time. All the Shares held in the treasury of the Company as of immediately prior to the Effective Time shall be canceled and no
consideration of any kind shall be paid, payable or otherwise delivered in exchange therefor under this Agreement as a result of or in connection with the Merger. 

(d) Parent shall be entitled to deduct and withhold from each Shareholder’s respective portion of the Merger Consideration otherwise
payable pursuant to this Agreement such amounts as it is required to deduct and withhold with respect to the making of such payment under the Code, or any provision of United States federal, state or local, or any foreign, Tax Law. Such amounts
shall be timely paid over to the appropriate taxing authority and shall be treated for all purposes of this Agreement as having been paid to the applicable Securityholder in respect of which Parent made such deduction and withholding. 

(e) Upon consummation of the Merger, certificates that immediately prior to the Effective Time represented outstanding Shares (the
“Certificates”) shall cease to represent any rights with respect thereto, other than the right to receive the portion of the Merger Consideration payable hereunder with respect to such Shares. 

 

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 1.6 Treatment of Options and Certain Warrants. 

(a) Treatment of Company Options. Set forth on Schedule 1.6(a) is a list of the options to acquire shares of the
Company’s Common Stock (the “Company Options”) outstanding as of the date hereof, which list sets forth the holder of each such Company Option, the aggregate number of shares of Common Stock issuable upon the exercise in full
of each such Company Option and the exercise price per share of each such Company Option. Prior to Closing, the Company shall deliver to Parent (with a copy to the Representative) an updated version of Schedule 1.6(a) to reflect those Company
Options that remain outstanding and unexercised immediately prior to the Effective Time. Subject to any applicable backup or other withholding requirements, at the Effective Time, by virtue of the Merger and without any action on the part of the
holder thereof, each Company Option which remains outstanding and unexercised immediately prior to the Effective Time shall be converted into and become the right to receive: 

(i) an amount in cash, if any, equal to the Common Stock Exchange Amount, plus an amount, if any, payable in respect of
each share of Common Stock pursuant to the terms of Section 1.7; plus 
 (ii) an amount in cash, if
any, as is payable with respect thereto in accordance with the provisions of Section 1.10(d)(iii) hereof; plus 

(iii) an amount in cash, if any, as is payable with respect thereto in accordance with the terms of
Section 1.11 hereof and the Indemnification Escrow Agreement; plus 
 (iv) an amount in cash as is
payable with respect thereto as Earnout Consideration, if any, pursuant to and in accordance with the terms of Section 1.13 hereof; plus 

(v) an amount in cash, if any, as is payable with respect thereto in accordance with Section 1.16(e) hereof
and the Representative Expense Escrow Agreement; less 
 (vi) the exercise price per share of such Company Option
(it being understood and hereby agreed that no cash amounts shall be paid in respect of any such Company Option unless and until the aggregate cash amount otherwise payable in respect of such Company Option pursuant to the preceding clauses
(i) – (v) of this Section 1.6(a), inclusive, exceeds the aggregate exercise price of such Company Option). 

Schedule 1.5 sets forth an estimate of the aggregate amount due to holders of the Company Options provided above, calculated
making the assumptions set forth on Schedule 1.5. 
 For the avoidance of doubt, with respect to certain of the Company
Options, there may be no amount of the Initial Merger Consideration payable at Closing to such optionholder based on the fact that the per share Common Stock Exchange Amount is less than the exercise price per share of such Company Option, provided
that such optionholder may be entitled to receive a portion of the Merger Consideration (including the Earnout Consideration), if and when, the aggregate amount of Merger Consideration payable to such optionholder exceeds the exercise price per
share of the applicable Company Option. 
  

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 (b) Treatment of Company Warrants. Set forth on Schedule 1.6(b) is a list
of all warrants to acquire shares of Common Stock, Series 2 Preferred Stock or Series 1 Preferred Stock (the “Company Warrants”) outstanding as of the date hereof, which list sets forth the holder of each such Company Warrant, the
aggregate number of shares of Series 1 Preferred Stock, Series 2 Preferred Stock or Common Stock issuable upon the exercise in full of each such Company Warrant and the exercise price per share of each such Company Warrant. Prior to Closing, the
Company shall deliver to Parent (with a copy to the Representative) an updated version of Schedule 1.6(b) to reflect those Company Warrants that remain outstanding and unexercised immediately prior to the Effective Time. 

(i) Subject to any applicable backup or other withholding requirements, at the Effective Time, by virtue of the Merger and
without any action on the part of the holder thereof, each Company Warrant which is exercisable for shares of Series 1 Preferred Stock that remains outstanding and unexercised immediately prior to the Effective Time shall be converted into and
become the right to receive: 
 (A) an amount in cash equal to the Series 1 Preferred Stock Exchange Amount, plus
an amount, if any, payable in respect of each share of Series 1 Preferred Stock pursuant to the terms of Section 1.7 plus 

(B) an amount in cash, if any, as is payable with respect thereto in accordance with the provisions of
Section 1.10(d)(iii) hereof; plus 
 (C) an amount in cash, if any, as is payable with respect
thereto in accordance with the terms of Section 1.11 hereof and the Indemnification Escrow Agreement; plus 

(D) an amount in cash and (if applicable) shares of Parent Common Stock, if any, as is payable and/or issuable with
respect to the Earnout Consideration pursuant to and in accordance with the terms of Section 1.13; plus 

(E) an amount in cash and (if applicable), if any, as is payable with respect thereto in accordance with
Section 1.16(e) hereof and the Representative Expense Escrow Agreement; less 
 (F) the exercise
price per share of such Company Warrant (it being understood and hereby agreed that no amounts shall be paid in respect of any such Company Warrant unless and until the aggregate amount otherwise payable in respect of such Company Warrant (with
shares of Parent Common Stock, if applicable, valued at $11.80 for this purpose) pursuant to the preceding clauses (A) – (E) of this Section 1.6(b)(i), inclusive, exceeds the aggregate exercise price of such Company
Warrant). 
  

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 (ii) Subject to any applicable backup or other withholding requirements,
at the Effective Time, by virtue of the Merger and without any action on the part of the holder thereof, each Company Warrant which is exercisable for shares of Series 2 Preferred Stock that remains outstanding and unexercised immediately prior to
the Effective Time shall be converted into and become the right to receive: 
 (A) an amount in cash equal to the
Series 2 Preferred Stock Exchange Amount, plus an amount, if any, payable in respect of each share of Series 2 Preferred Stock pursuant to the terms of Section 1.7; plus 

(B) an amount in cash, if any, as is payable with respect thereto in accordance with the provisions of
Section 1.10(d)(iii) hereof; plus 
 (C) an amount in cash, if any, as is payable with respect
thereto in accordance with the terms of Section 1.11 hereof and the Indemnification Escrow Agreement; plus 

(D) an amount in cash and (if applicable) shares of Parent Common Stock, if any, as is payable and/or issuable with
respect to the Earnout Consideration pursuant to and in accordance with the terms of Section 1.13; plus 

(E) an amount in cash, if any, as is payable with respect thereto in accordance with Section 1.16(e) hereof
and the Representative Expense Escrow Agreement; less 
 (F) the exercise price per share of such Company Warrant
(it being understood and hereby agreed that no amounts shall be paid in respect of any such Company Warrant unless and until the aggregate amount otherwise payable in respect of such Company Warrant (with shares of Parent Common Stock, if
applicable, valued at $11.80 for this purpose) pursuant to the preceding clauses (A) – (E) of this Section 1.6(b)(ii), inclusive, exceeds the aggregate exercise price of such Company Warrant). 

(iii) Subject to any applicable backup or other withholding requirements, at the Effective Time, by virtue of the Merger
and without any action on the part of the holder thereof, each Company Warrant which is exercisable for shares of Common Stock and that remains outstanding and unexercised immediately prior to the Effective Time shall be converted into and become
the right to receive: 
 (A) an amount in cash equal to the Common Stock Exchange Amount, plus an amount, if any,
payable in respect of each share of Common Stock pursuant to the terms of Section 1.7; plus 
 (B) an
amount in cash, if any, as is payable with respect thereto in accordance with the provisions of Section 1.10(d)(iii) hereof; plus 
  

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 (C) an amount in cash, if any, as is payable with respect thereto in
accordance with the terms of Section 1.11 hereof and the Indemnification Escrow Agreement; plus 

(D) an amount in cash, if any, as is payable with respect to the Earnout Consideration pursuant to and in accordance with
the terms of Section 1.13 hereof; plus 
 (E) an amount in cash, if any, as is payable with respect
thereto in accordance with Section 1.16(e) hereof and the Representative Expense Escrow Agreement; less 

(F) the exercise price per share of such Company Warrant (it being understood and hereby agreed that no cash amounts shall
be paid in respect of any such Company Warrant unless and until the aggregate cash amount otherwise payable in respect of such Company Warrant pursuant to the preceding clauses (A) – (E) of this Section 1.6(b)(iii),
inclusive, exceeds the aggregate exercise price of such Company Warrant). 
 Schedule 1.5 sets forth an estimate of the
aggregate amount due to holders of the Company Warrants provided above, calculated making the assumptions set forth on Schedule 1.5. 

For the avoidance of doubt, with respect to certain of the Company Warrants, there may be no amount of the Initial Merger Consideration payable at
Closing to such holders of Company Warrants based on the fact that the Series 1 Preferred Stock Exchange Amount, the Series 2 Preferred Stock Exchange Amount or Common Stock Exchange Amount, as applicable, is less than the exercise price per share
of such Company Warrant, provided that such holders of Company Warrants may be entitled to receive a portion of the Merger Consideration (including the Earnout Consideration), if and when, the aggregate amount of Merger Consideration payable to such
holder exceeds the exercise price per share of the applicable Company Warrant. 
 (c) If not exercised prior to the Effective
Time, all Company Options that are entitled to payment and all Company Warrants that are entitled to payment shall be cancelled with no right to payment other than such payment rights set forth in accordance with this Section 1.6, and
shall have no further rights other than such payment right from and after the Effective Time; it being expressly understood that there may be certain Company Options and Company Warrants that will not be entitled to the payment of Merger
Consideration pursuant to this Section 1.6 as a result of the amount of the exercise price applicable thereto. Any other options or warrants to acquire shares of the Company’s capital stock shall be cancelled with no right to
payment therefor and shall have no further rights from and after the Effective Time. 
 (d) Parent shall be entitled to deduct
and withhold from each Company Option and Company Warrant holder’s respective portion of the Merger Consideration otherwise payable pursuant to this Agreement such amounts as it is required to deduct and withhold with respect to the making of
such payment under the Code, or any provision of United States federal, state or local, or any foreign, Tax Law. Such amounts shall be timely paid over to the appropriate taxing authority and shall be treated for all purposes of this Agreement as
having been paid to the applicable Company Option or Company Warrant holder in respect of which Parent made such deduction and withholding. 
  

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 1.7 Initial Merger Consideration True-Up Adjustment. 

(a) As promptly as practicable following the Final Determination Date under Section 1.13 hereof, Parent and the
Representative shall recalculate (i) the Series 2 Preferred Stock Exchange Amount, (ii) the Series 1 Preferred Stock Exchange Amount, and (iii) the Common Stock Exchange Amount, in each case based upon the following revised
definitions: 
 (i) “Aggregate Exercise Price Amount” shall mean the aggregate dollar amount
payable to the Company as the purchase price for the exercise of (i) each Company Option outstanding as of immediately prior to the Effective Time with a per share exercise price that is less than the per share value of the consideration paid
or payable in respect of each Company Option pursuant to Section 1.6(a) hereof (without giving effect to Section 1.6(a)(vi)), and (ii) each Company Warrant outstanding as of immediately prior to the Effective Time with a
per share exercise price that is less than the per share value of the consideration paid or payable in respect of each Company Warrant pursuant to Section 1.6(b) hereof (without giving effect to Sections 1.6(b)(i)(F),
1.6(b)(ii)(F), and 1.6(b)(iii)(F)). 
 (ii) “Fully Diluted Company Share Amount”
shall mean the sum (without duplication) of the following: 
 (A) the aggregate number of shares of Common Stock
outstanding as of immediately prior to the Effective Time; 
 (B) the aggregate number of shares of Common Stock
issuable upon the conversion in full of any and all shares of Series 1 Preferred Stock outstanding as of immediately prior to the Effective Time; 

(C) the aggregate number of shares of Common Stock issuable upon the conversion in full of any and all shares of Series 2
Preferred Stock outstanding as of immediately prior to the Effective Time; 
 (D) the aggregate number of shares
of Common Stock issuable upon the exercise in full of each Company Option outstanding as of the immediately prior to the Effective Time with a per share exercise price that is less than the per share value of the consideration paid or payable in
respect of each Company Option pursuant to Section 1.6(a) hereof (without giving effect to Section 1.6(a)(vi)); 
  

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 (E) the aggregate number of shares of Common Stock issuable upon the
exercise in full each Company Warrant which (1) was exercisable for shares of Common Stock, (2) remained outstanding and unexercised as of immediately prior to the Effective Time, and (3) had a per share exercise price that is less
than the per share value of the consideration paid or payable in respect of each such Company Warrant pursuant to Section 1.6(b) hereof (without giving effect to Section 1.6(b)(iii)(F)); and 

(F) the aggregate number of shares of Common Stock issuable upon the conversion in full of all shares of Series 1
Preferred Stock or Series 2 Preferred Stock issuable upon the exercise in full of each Company Warrant which (1) was exercisable for shares of Series 1 Preferred Stock or Series 2 Preferred Stock, (2) remained outstanding and unexercised
as of immediately prior to the Effective Time, and (3) has a per share exercise price that is less than the per share value of the consideration paid or payable in respect of each such Company Warrant pursuant to Section 1.6(b)
hereof (without giving effect to Section 1.6(b)(i)(F) and 1.6(b)(ii)(F)). 
 (b) In the event that the
calculation contemplated by Section 1.7(a) results in a Series 2 Preferred Stock Exchange Amount, Series 1 Preferred Stock Exchange Amount or Common Stock Exchange Amount that exceeds the value of such amounts as calculated pursuant to
the terms of Section 1.5(b), then promptly following the Final Determination Date, and in any event within five (5) Business Days of the Final Determination Date, the Representative and Parent shall update the Spreadsheet to reflect
as much, and Parent shall pay (in the case of the holders of Company Options as of immediately prior to the Effective Time) or shall use its commercially reasonable efforts to cause the Exchange Agent to pay from the Exchange Fund (in the case of
holders of Company Warrants as of immediately prior to the Effective Time), to each Securityholder that has properly completed a Letter of Transmittal in accordance with the terms of Section 1.9 (if applicable), such
Securityholder’s allocable portion of the additional Series 2 Preferred Stock Exchange Amount, Series 1 Preferred Stock Exchange Amount and Common Stock Exchange Amount in accordance with the allocation set forth in the Spreadsheet, as updated
in the manner contemplated by this Section 1.7. If at such time there are insufficient funds in the Exchange Fund to satisfy such payments, then Parent shall deposit (by wire transfer of immediately available funds) with the Exchange
Agent sufficient funds to make such payments, provided that the deposit thereof would not violate the terms of the last sentence of Section 1.9(a). 

(c) Following any payment contemplated by Section 1.7(b), Parent and the Representative shall in good faith adjust the
Spreadsheet to take into account any adjustments to the remaining Merger Consideration for each Securityholder by virtue of the adjustments contemplated by this Section 1.7. For example, if an estimate is made under this
Section 1.7 with respect to any amount that may be payable from the Indemnification Escrow Amount, it may be necessary to adjust the Spreadsheet to provide that holders of Company Warrants or Company Options are entitled to a greater
amount of the Indemnification Escrow Amount, if distributed, than initially indicated on the Spreadsheet. 
  

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 1.8 Dissenters Shares. Notwithstanding anything contained herein to the contrary,
to the extent that appraisal rights are available under the Act, any Shares that are issued and outstanding immediately prior to the Effective Time and that have not been voted to approve this Agreement and the Agreement of Merger and with respect
to which appraisal rights have been properly and timely perfected in accordance with the Act (the “Dissenting Shares”) shall not be converted into the right to receive the Merger Consideration at or after the Effective Time. If a
holder of Dissenting Shares effectively withdraws or loses his, her or its right to appraisal and payment under the Act, then, as of the Effective Time or the occurrence of such event, whichever later occurs, such holder’s Dissenting Shares
shall cease to be Dissenting Shares and shall be converted into and represent the right to receive, when and as payable, the portion of the Merger Consideration payable with respect to such Shares hereunder upon surrender of the Certificates
representing such Dissenting Shares in accordance with Section 1.5 hereof. The Company shall give Parent prompt notice of any demand received by the Company for appraisal of Shares. Except with the prior written consent of Parent or as
may otherwise be required under applicable Law, the Company shall not make any payment with respect to, or settle or offer to settle, any such demands. 

1.9 Closing Payment Mechanics. 

(a) The Company shall prepare and deliver to Parent and the Exchange Agent, as soon as reasonably practicable following the Election
Deadline (and the final determination of the Stock Election Percentage and Cash Election Percentage for each holder of Series 2 Preferred Stock, Series 1 Preferred Stock and Company Warrants entitled to make a Stock Election pursuant to
Section 1.13(b) hereof), a spreadsheet or spreadsheets in form reasonably acceptable to Parent and the Exchange Agent, which spreadsheet shall be updated from time to time prior to the Closing and shall ultimately be dated as of the
Closing Date setting forth, as of the Closing Date (and subject to further updating following the Closing as contemplated by Section 1.7): (i) the names of all Securityholders and their respective addresses in the stock and security
ledgers of the Company, (ii) the number and kind of Shares, Company Warrants and Company Options held by such Persons and, if applicable, the respective certificate numbers and exercise prices with respect to Company Warrants and Company
Options, (iii) the Cash Election Percentage and Stock Election Percentage of each holder of Series 2 Preferred Stock, Series 1 Preferred Stock and Company Warrants entitled to make a Stock Election determined in accordance with the Elections
made pursuant to Section 1.13(b), (iv) the aggregate amount of cash that each such Securityholder is entitled to receive as Initial Merger Consideration and, if and to the extent earned, the aggregate amount of cash and the
aggregate number of shares of Parent Common Stock that each such Securityholder is entitled to receive as Earnout Consideration, (v) the interest of each Securityholder in any cash to be paid by the Parent pursuant to the terms of
Section 1.10, (vi) the aggregate amount of cash to be deposited into the Indemnification Escrow Account at the Closing potentially allocable to each such Securityholder pursuant to this Agreement, (vii) the aggregate amount of
cash to be deposited into the Expense Escrow Fund at the Closing for and on behalf of each such Securityholder pursuant to this Agreement, and (viii) any other factual information necessary for, or reasonably related to, the determination,
calculation, allocation and payment of Merger Consideration reasonably requested by Parent and the Exchange Agent (the “Spreadsheet”). For the avoidance of doubt, in no event shall the aggregate amount payable by Parent for the
benefit of the Securityholders under this Agreement in exchange for the Shares, Company Options and Company Warrants, and as set forth on the Spreadsheet, at any time exceed the amount of the Merger Consideration calculated as set forth in
Section 1.4, and subject to adjustment to the Merger Consideration permitted by the terms of this Agreement (including, without limitation, Parent’s indemnification rights or by exercise of Parent’s set-off rights), in no event
shall the aggregate amount payable by Parent for the benefit of the Securityholders under this Agreement in exchange for the Shares, Company Options and Company Warrants, and as set forth on the Spreadsheet be less than the amount of the Merger
Consideration calculated as set forth in Section 1.4. 
  

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 (b) Pursuant to an Exchange Agent Agreement between Parent and the Exchange Agent (the
“Exchange Agent Agreement”), promptly following the Closing, Parent shall deposit, or shall cause to be deposited, with an exchange agent selected by Parent with the Company’s prior approval, which shall not be unreasonably
withheld or delayed (the “Exchange Agent”), for the benefit of the holders of Shares and Company Warrants, cash necessary to pay the Initial Merger Consideration to be paid (excluding amounts payable under Section 1.6(a)
for Company Options) in connection with the Merger (the “Exchange Fund,” it being understood that any and all interest earned on funds deposited therein pending payment shall be turned over to Parent). For the avoidance of doubt,
the Parent shall not deposit with the Exchange Agent, and the Exchange Fund shall not include, (x) any cash to be paid into the Indemnification Escrow Account or Expense Escrow Fund at Closing, (y) any Earnout Consideration or (z) any
consideration payable to holders of Company Options under Section 1.6(a). The Exchange Agent shall, pursuant to irrevocable instructions, make the payments provided for in this Section 1.9 and the Exchange Fund shall not be
used for any other purpose. 
 (c) Parent will use its commercially reasonable efforts to cause the Exchange Agent to deliver,
within five (5) Business Days after the Closing Date, to each holder of record of Company Warrants or a Certificate at the address set forth opposite such holder’s name on the Spreadsheet (as updated from time to time in writing by the
Company) a letter of transmittal and instructions for use in effecting a surrender of the Certificates, if applicable, in exchange for its respective portion of the Merger Consideration in the form attached hereto as Exhibit E (a
“Letter of Transmittal”). Upon surrender of a Certificate, if applicable, for cancellation to the Exchange Agent together with the submission of a duly completed and validly executed Letter of Transmittal to the Exchange Agent, the
holder of the Shares and Company Warrants to which such Letter of Transmittal relates shall be entitled to receive in exchange therefor cash (without interest) (and, in respect of any Earnout Consideration that becomes payable hereunder, shares of
Parent Common Stock, if applicable) representing such holder’s respective portion of the Merger Consideration calculated in accordance with, and payable when and as provided in, this Agreement. Following the Effective Time and pending a
holder’s submission of a Letter of Transmittal, each such holder of outstanding Shares and Company Warrants will be deemed, for all purposes, to hold an irrevocable right to receive that amount of consideration equal to his, her or its
respective portion of the Merger Consideration into which such holder’s Shares or Company Warrants shall have been so converted in accordance with this Agreement. 
  

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 (d) Parent shall use its commercially reasonable efforts to cause the Exchange Agent to
deliver, no later than five (5) Business Days after submission of a properly completed and duly executed Letter of Transmittal, to each holder of a Company Warrant and Shareholder that has submitted such Letter of Transmittal cash (without
interest), representing such Securityholder’s respective portion of the Initial Merger Consideration calculated and payable in accordance with this Agreement. 

(e) At or after the Effective Time, there shall be no transfers on the transfer books of the Company of the Shares or Company Warrants
that were outstanding immediately prior to the Effective Time. 
 (f) Upon the request of Parent, any portion of the Exchange
Fund that remains unclaimed by a holder of Shares or Company Warrants eighteen (18) months after the Effective Time shall be delivered to Parent and any such Securityholder who has not returned a Letter of Transmittal in accordance with this
Section 1.9 prior to that time shall thereafter look only to Parent for payment of such holder’s portion of the Initial Merger Consideration. Notwithstanding anything to the contrary in this Agreement, subject to applicable Law,
none of Parent, the Surviving Company, the Representative or any other party hereto shall be liable to any Person for any Merger Consideration properly paid to a public official pursuant to any applicable abandoned property, escheat or similar Law.
Subject to applicable Law, any Merger Consideration remaining unclaimed by holders of Shares or Company Warrants three (3) years after the Effective Time (or, in either case, such earlier date immediately prior to such time when the amounts
would otherwise escheat to or become property of the United States or any other nation, state, or bilateral or multilateral governmental authority, any local governmental unit or subdivision thereof, or any branch, agency, or judicial body thereof
(“Government”) shall become, to the extent permitted by applicable Law, the property of Parent free and clear of any claims or interest of any Person previously entitled thereto. 

1.10 Post-Closing Adjustment to Merger Consideration. 

(a) Company Pre-Closing Estimates. At least five Business Days prior to the Closing Date, the Company shall deliver to Parent a
statement setting forth the Company’s good faith calculation of an estimate of (i) the Net Working Capital of the Company as of the Closing (the “Estimated Closing Net Working Capital”), (ii) the Indebtedness of the
Company as of immediately prior to the Effective Time (the “Estimated Indebtedness”) and (iii) the New Investment Adjustment Amount as of immediately prior to the Effective Time (the “Estimated New Investment Adjustment
Amount”) (such statement being, the “Estimated Closing Statement”). The Estimated Closing Net Working Capital shall be calculated in accordance with United States generally accepted accounting principles
(“GAAP”) applied in a manner consistent with accounting principles, policies, methodologies, practices and procedures applied in the preparation of the Annual Financial Statements and, where applicable, the accounting principles,
policies, methodologies, practices and procedures set forth on Schedule 1.10(a)(i) (it being understood and agreed that in the event of a conflict between the accounting principles, policies, methodologies, practices and procedures applied in
the preparation of the Annual Financial Statements and the accounting principles, policies, methodologies, practices and procedures set forth on Schedule 1.10(a)(i), the accounting principles, policies, methodologies, practices and procedures
set forth on Schedule 1.10(a)(i) shall supersede, govern and control). The items comprising the Estimated Indebtedness and the Estimated New Investment Adjustment Amount as of the date hereof are set forth on Schedule 1.10(a)(ii).
Following Parent’s receipt of the Estimated Closing Statement, the Company shall afford Parent reasonable access to copies of the working papers of the Company prepared or used in connection with the Company’s preparation of the Estimated
Closing Statement. Parent shall have an opportunity to review with the Company and object to (but not determine) all or any part of the Estimated Closing Statement, such review to be reasonably prompt and any objection to be reasonable and in good
faith. In the event that Parent shall object to any portion of the Estimated Closing Statement, Parent and the Company shall discuss Parent’s objections in good faith. The Estimated Closing Statement as finally agreed upon by the Company and
Parent shall be the “Agreed Estimated Closing Statement”. The Agreed Estimated Closing Statement shall be used to adjust the Merger Consideration payable and issuable at the Closing pursuant to Section 1.4(b) hereof.

  

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 (b) Parent Post-Closing Calculation of Closing Net Working Capital. As soon as
reasonably practicable following the Closing Date, and in any event within ninety (90) calendar days thereof, Parent shall deliver to the Representative, (i) a balance sheet of the Company as of the Closing (the “Closing Balance
Sheet”), (ii) a statement (the “Closing Statement of Net Working Capital”) setting forth a calculation of Net Working Capital of the Company as of the Closing determined using the Closing Balance Sheet (the
“Closing Net Working Capital”), (iii) a statement (the “Closing Statement of Indebtedness”) reflecting the Indebtedness of the Company as of immediately prior to the Effective Time (“Closing
Indebtedness”) and (iv) a statement (the “Closing Statement of New Investment Adjustment Amount”) reflecting the New Investment Adjustment Amount as of immediately prior to the Effective Time (the “Closing New
Investment Adjustment Amount”). The Closing Balance Sheet, the Closing Statement of Net Working Capital, the Closing Statement of Indebtedness and the Closing Statement of New Investment Adjustment Amount is referred to herein as the
“Closing Statement.” For purposes of preparing the Closing Balance Sheet and the calculation of Closing Net Working Capital, Parent shall, or shall cause the Surviving Company to, take, within a reasonable period of time following
the Closing, a physical count of the inventory of the Surviving Company and its Subsidiaries. Designees of the Representative may observe the taking of such physical count. The Closing Balance Sheet and Closing Net Working Capital shall be
calculated in accordance with GAAP applied in a manner consistent with accounting principles, policies, methodologies, practices and procedures applied in the preparation of the Annual Financial Statements and the Estimated Closing Statement and,
where applicable, the accounting principles, policies, methodologies, practices and procedures set forth on Schedule 1.10(a)(i) (it being understood and agreed that in the event of a conflict between the accounting principles, policies,
methodologies, practices and procedures applied in the preparation of the Annual Financial Statements and the accounting principles, policies, methodologies, practices and procedures set forth on Schedule 1.10(a)(i), accounting principles,
policies, methodologies, practices and procedures set forth on Schedule 1.10(a)(i) shall supersede, govern and control). The Closing Indebtedness and the Closing New Investment Adjustment Amount shall be calculated in a manner consistent with
Estimated Closing Statement. 
  

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 (c) Determination of Final Net Working Capital. 

(i) Upon delivery of the Closing Statement, Parent shall provide the Representative and its accountants reasonable access
to the accountants and accounting records of the Company and to any and all working papers prepared by the Company or Parent related to the preparation of the Closing Statement. If the Representative disagrees with the calculation of the Closing Net
Working Capital, the calculation of Closing Indebtedness, or the calculation of the Closing New Investment Adjustment Amount, the Representative shall notify Parent of such disagreement in writing, setting forth in reasonable detail the particulars
of such disagreement, within thirty (30) days after its receipt of the Closing Statement or, if the adjustments proposed by Parent with respect to the Closing Statement equal or exceed $1,000,000 in the aggregate (either positive or negative),
within forty-five (45) days after its receipt of the Closing Statement. In the event that the Representative does not provide such a notice of disagreement within such thirty (30) or forty-five (45) day period, as applicable, the
Representative shall be deemed to have accepted the Closing Statement and the calculations of the Closing Net Working Capital, Closing Indebtedness and the Closing New Investment Adjustment Amount reflected thereon, which if not objected to within
the relevant thirty (30) or forty-five (45) day period, as applicable, shall then be final, binding and conclusive for all purposes hereunder. In the event any such notice of disagreement is timely provided, Parent and the Representative
shall use commercially reasonable efforts for a period of thirty (30) days (or such longer period as they may mutually agree) to resolve any disagreements with respect to the Closing Statement and/or the calculation of the Closing Net Working
Capital, Closing Indebtedness and the Closing New Investment Adjustment Amount, as the case may be. 
 (ii) If,
at the end of such period, they are unable to resolve such disagreements, then Parent and the Representative shall mutually select an independent accounting firm of recognized national standing (the “Auditor”) to act as a referee to
resolve any remaining disagreements. The Auditor shall determine as promptly as practicable, but in any event within thirty (30) calendar days of the date on which such dispute is referred to the Auditor, based solely on the terms of this
Agreement, any remaining disputes. Each of Parent and the Representative (or their respective designees) shall be permitted to submit a proposed Closing Balance Sheet, Closing Statement of Indebtedness or Closing Statement of New Investment
Adjustment Amount, as the case may be and applicable supporting documentation and to make a presentation to the Auditor in connection with the resolution of any such disagreements, and, without the mutual agreement of Parent and the Representative,
the Auditor shall not rely on or consider any other documents, materials, presentations or evidence (other than the plain language of the Agreement) in making its determination. It is the intent of the Parties that the process set forth in this
Section 1.10(c) and the activities of the Auditor in connection herewith are not (and should not be considered to be or treated as) an arbitration proceeding or similar arbitral process and that no formal arbitration rules should be
followed (including, in particular, but without limitation, rules with respect to procedures and discovery). The fees and expenses of the Auditor incurred in connection with its review and resolution of any disputes shall be allocated between
Parent, on one hand, and the Securityholders, on the other, by the Auditor in proportion to the extent either of Parent or the Securityholders did not prevail in the aggregate on items in dispute on their respective Closing Balance Sheet or Closing
Statement of Indebtedness or Closing Statement of New Investment Adjustment Amount, as the case may be; provided, that such fees and expenses shall not include, so long as a Party complies with the procedures of this Section, the other
Party’s outside counsel, accounting or other fees. The determination of the Auditor shall be final, conclusive and binding on the Parties. 
  

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 (iii) The amounts of the Closing Net Working Capital, Closing
Indebtedness and Closing New Investment Adjustment Amount as finally determined in accordance with the terms of this Section 1.10 shall be referred to as the “Final Closing Net Working Capital,” “Final Closing
Indebtedness,” and “Final Closing New Investment Adjustment Amount,” respectively. The date on which the Final Closing Net Working Capital, the Final Closing Indebtedness and the Final Closing New Investment Adjustment
Amount are finally determined in accordance with this Section 1.10(c) is hereinafter referred to as, the “Determination Date.” 

(d) Adjustment to Merger Consideration. 

(i) For purposes of this Agreement: 

(A) “Adjustment Amount,” means the sum of (x) the Net Working Capital Adjustment Amount,
(y) the Indebtedness Adjustment Amount, and (z) the Investment Adjustment Amount. 
 (B) “Net
Working Capital Adjustment Amount,” which may be positive or negative, means (A) the Final Closing Net Working Capital, minus (B) the Estimated Closing Net Working Capital. 

(C) “Indebtedness Adjustment Amount,” which may be positive or negative, means the (A) Final Closing
Indebtedness, minus (B) Estimated Indebtedness, each expressed as a negative number. 
 (D)
“Investment Adjustment Amount,” which may be positive or negative, means the (A) Final Closing New Investment Adjustment Amount minus the amount of Final Closing Net Working Capital, if a positive number, minus
(B) the Estimated New Investment Adjustment Amount minus the amount of Estimated Closing Net Working Capital, if a positive number. 

(ii) For purposes of convenience only, the Parties agree that upon the final determination of the Net Working Capital
Adjustment Amount, the Indebtedness Adjustment Amount, and the Investment Adjustment Amount, such amounts shall be aggregated for the purpose of paying the Adjustment Amount to Parent or the Securityholders, as the case may be. For example, if the
Indebtedness Adjustment Amount equals negative $1,000,000 (i.e., such amount is owed to Parent), the Net Working Capital Adjustment Amount equals positive $100,000 (i.e., such amount is owed to the Securityholders), and the Investment Adjustment
Amount equals $0 each as finally determined, then the Adjustment Amount would be negative $900,000 and such amount would be owed to Parent in accordance with the terms of this Section 1.10. Additional illustrative examples of these
calculations are set forth on Schedule 1.10(d). 
  

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 (iii) Positive Adjustment Payment. If the Adjustment Amount is a
positive number, then, promptly following the Determination Date, and in any event within five (5) Business Days of the Determination Date, Parent shall deposit the Adjustment Amount without interest (less any portion of the Adjustment Amount
due to holders of Company Options entitled thereto) (by wire transfer of immediately available funds) with the Exchange Agent, for distribution to each Securityholder who has properly completed a Letter of Transmittal in accordance with
Section 1.9, and Parent shall pay to each Securityholder that is a holder of Company Options entitled to be paid pursuant to the terms hereof, with such distributions to be made to each such Securityholder, in each such case, in
accordance with the Spreadsheet (other than any Securityholder who holds Dissenting Shares). 
 (iv) Negative
Adjustment Amount. If the Adjustment Amount is a negative number, then, promptly following the Determination Date, and in any event within five (5) Business Days of the Determination Date, the Representative and Parent shall cause the
Escrow Agent to pay (by wire transfer of immediately available funds) to Parent out of the Indemnification Escrow Amount an amount equal to the lesser of (A) the Adjustment Amount, together with any interest earned on that portion of the
Indemnification Escrow Amount equal to the Adjustment Amount or (B) the full amount of the Indemnification Escrow Amount, together with any interest earned thereon. 

1.11 Escrow. 

(a) Escrow Account. On the Closing Date, Parent shall pay (or cause to be paid), by wire transfer of immediately available funds,
to the U.S. Bank National Association (the “Escrow Agent”), an amount in cash equal to Nine Million Nine Hundred Thousand Dollars ($9,900,000.00) (the “Indemnification Escrow Amount”), to be held in escrow to
satisfy, at least in part, any claims by (i) Parent for satisfaction of any post-closing adjustment pursuant to Section 1.10, (ii) any Parent Indemnified Person for any indemnification claim of any Parent Indemnified Person
pursuant to Section 8.2; or (iii) any and all other claims made by Parent or any Parent Indemnified Person in connection with the transactions contemplated hereby to the extent permitted by the terms of this Agreement (the
“Indemnification Escrow Account”). The Escrow Agent shall hold and invest the Indemnification Escrow Amount in accordance with the terms of the Indemnification Escrow Agreement attached hereto as Exhibit F (the
“Indemnification Escrow Agreement”). The Indemnification Escrow Account shall be treated for tax purposes as owned by Parent, and any interest or other income thereon will be treated as income of Parent. 

(b) Remaining Balance in Indemnification Escrow Account. Upon the expiration of the eighteen (18) month period following the
Closing Date, Parent shall cause the Escrow Agent (in accordance with the terms of the Indemnification Escrow Agreement) to pay (by wire transfer of immediately available funds to the Exchange Agent any remaining amounts of cash in the
Indemnification Escrow Account (not then claimed by Parent to be owed to a Parent Indemnified Person), together with any interest earned on any such amount, for distribution to the Securityholders that have properly completed a Letter of Transmittal
in accordance with Section 1.9, with such distribution to be made to each such Securityholder in accordance with the Spreadsheet and the terms of the Indemnification Escrow Agreement. 

 

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 (c) Merger Consideration Adjustments. Except for any interest amount(s) paid
thereon, any amounts distributed to Parent pursuant to the provisions of this Section 1.11 shall be deemed to be and treated for all purposes as adjustments to the Merger Consideration. 

1.12 Payment Mechanics of Transaction Expenses. 

(a) Estimated Transaction Expenses. At least two (2) Business Days prior to the Closing Date, the Company shall provide to
Parent a statement (the “Statement of Estimated Transaction Expenses”) setting forth the Company’s good faith calculation of an estimate of (which estimate shall include such reserves as the Company determines in good faith to
be appropriate for any expenses that are not then known or determinable) the Transaction Expenses (segregated by payee, to the extent reasonably known or anticipated), incurred (but not yet paid) that have been incurred prior to Closing and that may
be incurred at or after the Closing (“Estimated Transaction Expenses”). Parent shall have an opportunity to review with the Company and object to (but not determine) all or any part of the Estimated Transaction Expenses, such review
to be reasonably prompt and any objection to be reasonable and in good faith. In the event that Parent shall object to any portion of the Estimated Transaction Expenses, Parent and the Company shall discuss Parent’s objections in good faith.

 (b) Payment of Estimated Transaction Expenses. On the Closing Date, Parent shall pay (by wire transfer of immediately
available funds): (i) to Wilson Sonsini Goodrich & Rosati, the amount indicated on the Statement of Estimated Transaction Expenses as payable to Wilson Sonsini Goodrich & Rosati; (ii) to UBS the amount indicated on
Statement of Estimated Transaction Expenses as payable to UBS; and (iii) to the other payees set forth on Statement of Estimated Transaction Expenses (including, without limitation, the employees, officers and directors who are entitled to
payments of Estimated Transaction Expenses), the respective amounts indicated on Statement of Estimated Transaction Expenses as payable to them. 

(c) No Parent Responsibility. In no event shall Parent be responsible for payment of Transaction Expenses and the Parties
acknowledge that the payment of the Estimated Transaction Expenses out of the Initial Merger Consideration by Parent as indicated in Section 1.4 is for convenience only and in no way reflects any liability of Parent for the Transaction
Expenses. 
  

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 1.13 Earnout. 

(a) Earnout Consideration. If the Surviving Company achieves the revenue targets as set forth and as calculated pursuant to
Schedule 1.13(a) (the “Earnout Calculation Schedule”) at any time during the period starting on the earlier of the Closing Date or July 1, 2010 through January 1, 2012 (the “Earnout Period”),
then as soon as reasonably practicable following the Final Determination thereof (but in no event prior to July 3, 2011) as provided in this Section 1.13, for the applicable Earnout Period, Parent shall deposit (by wire transfer of
immediately available funds) with the Exchange Agent an amount equal to the aggregate amount of the Securityholder’s allocable portion of the amount of cash set forth on the Earnout Calculation Schedule. The Exchange Agent shall distribute such
amount of cash to those Securityholders that have properly completed a Letter of Transmittal, if applicable, in accordance with the allocations set forth in the Spreadsheet. Parent shall also issue (or cause to be issued and distributed by the
Exchange Agent), Parent Common Stock to those Securityholders entitled to the same as set forth on the Spreadsheet in accordance with the allocations set forth in the Spreadsheet (based on each Securityholder’s Stock Election Percentage and
Cash Election Percentage, if applicable, and calculated in accordance with Section 1.13(b)(viii)) (such cash and Parent Common Stock collectively, the “Earnout Consideration”). 

(b) Election. 

(i) Each holder of a certificate that immediately prior to the Effective Time represented outstanding shares of Series 2
Preferred Stock or Series 1 Preferred Stock and each holder of a Company Warrant exercisable for shares of Series 1 Preferred Stock or Series 2 Preferred Stock (each, a “Preferred Stock Warrant”) shall be entitled to make, or be
deemed to have made, an election with respect to the Earnout Consideration in accordance with the provisions of this Section 1.13(b). Each holder of shares of Common Stock, and each holder of Company Options and Company Warrants
exercisable for Common Stock (each, a “Common Stock Warrant”) shall only be entitled to receive cash with respect to any Earnout Consideration payable hereunder in respect of such shares of Common Stock and such Company Options and
Common Stock Warrants. 
 (ii) The Company shall mail to each holder of shares of Series 2 Preferred Stock and
Series 1 Preferred Stock and each holder of a Preferred Stock Warrant (i) a form of election in the form attached hereto as Exhibit G (each, a “Form of Election”) pursuant to which such holder shall be entitled to
exercise their right to make an Election prior to the Election Deadline, (ii) an Accredited Investor Questionnaire, in the form attached hereto as Exhibit H (each, an “AIQ Form”), and (iii) a Lock-Up Agreement in
the form attached hereto as Exhibit I (each, a “Lock-Up Agreement”). The Company shall mail the Form of Election, the AIQ Form and the Lock-Up Agreement in the same mailing as the Information Statement, and the Company shall use
commercially reasonable efforts to make available as promptly as possible a Form of Election, an AIQ Form and a Lock-Up Agreement to any holder of Series 2 Preferred Stock or Series 1 Preferred Stock and any holder of a Preferred Stock Warrant who
requests any such document prior to 9:00 a.m. (Pacific time) on the date that is fourteen (14) days following the date the Company initiates delivery of the Information Statement (the “Election Deadline”). 

(iii) Each such holder of shares of Series 2 Preferred Stock and Series 1 Preferred Stock and each holder of a Preferred
Stock Warrant may specify in a request made in accordance with the provisions of this Section 1.13(b) (an “Election”) (A) the percentage of such holder’s Earnout Consideration which such holder desires to
receive in Parent Common Stock (“Stock Election Percentage”) and (B) the percentage of such holder’s Earnout Consideration which such holder desires to receive in cash (“Cash Election Percentage”).

  

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 (iv) To make a valid election to receive Parent Common Stock (a
“Stock Election”), a holder of shares of Series 2 Preferred Stock or Series 1 Preferred Stock or a holder of a Preferred Stock Warrant must deliver to the Exchange Agent prior to the Election Deadline an executed and properly
completed (A) Form of Election with a Stock Election Percentage specified therein, (B) AIQ Form, and (C) Lock-Up Agreement. 

(v) A holder of shares of Series 2 Preferred Stock or Series 1 Preferred Stock and a holder of a Preferred Stock Warrant
shall be deemed to have a Cash Election Percentage of 100% if such holder: 
 (A) fails to deliver to the
Exchange Agent prior to the Election Deadline an executed and properly completed (1) Form of Election with a Stock Election specified therein, (2) AIQ Form, and (3) Lock-Up Agreement, 

(B) delivers to the Exchange Agent prior to the Election Deadline an executed and properly completed Form of Election with
a Cash Election Percentage of 100%, or 
 (C) otherwise fails to satisfy the requirements of
Section 1.13(b) to the reasonable satisfaction of Parent on or prior to the Election Deadline, 
 it being understood
and agreed that if Parent or the Company have a good faith reason to believe that a holder of shares of Series 2 Preferred Stock or Series 1 Preferred Stock or a holder of a Preferred Stock Warrant has attempted to make a Stock Election prior to the
Election Deadline, but such Stock Election fails to satisfy the requirements of this Section 1.13(b), then Parent and/or the Company will notify such holder of any deficiencies in such purported Stock Election so as to give such holder
an opportunity to make a valid Stock Election which satisfies the requirements of this Section 1.13(b). 

(vi) Any determination by Parent with respect to whether a holder of shares of Series 2 Preferred Stock or Series 1
Preferred Stock or a holder of a Preferred Stock Warrant has or has not made a valid Stock Election shall be final, binding and nonappealable (it being understood and agreed that if Parent or the Company have a good faith reason to believe that a
holder of shares of Series 2 Preferred Stock or Series 1 Preferred Stock or a holder of a Preferred Stock Warrant has attempted to make a Stock Election prior to the Election Deadline, but such Stock Election fails to satisfy the requirements of
this Section 1.13(b), then Parent and/or the Company will notify such holder of any deficiencies in such purported Stock Election so as to give such holder an opportunity to make a valid Stock Election which satisfies the requirements of
this Section 1.13(b)). 
 (vii) All elections shall be irrevocable once made and shall be binding on
the holders of shares of Series 2 Preferred Stock and Series 1 Preferred Stock and the holders of Preferred Stock Warrants (and any subsequent transferee of any shares of Series 2 Preferred Stock or Series 1 Preferred Stock). 

 

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 (viii) In the event that a holder of shares of Series 2 Preferred Stock
or Series 1 Preferred Stock or a holder of Preferred Stock Warrants makes a valid Stock Election pursuant to this Section 1.13(b), then any Earnout Consideration that would have been payable in cash in respect of such shares of Series 2
Preferred Stock and Series 1 Preferred Stock and such Preferred Stock Warrants shall, in lieu thereof, be paid in a number of shares of Parent Common Stock equal to the quotient obtained by dividing (x) the Earnout Consideration that would have
been payable in cash in respect of such shares of Series 2 Preferred Stock and Series 1 Preferred Stock and such Preferred Stock Warrants but for such Stock Election, by (y) $11.80 (the “Parent Common Stock Value”). 

(c) Notwithstanding any other provision of this Agreement, no fractional shares of Parent Common Stock will be issued as Earnout
Consideration pursuant to this Agreement and any holder of shares of Series 2 Preferred Stock or Series 1 Preferred Stock or any holder of a Preferred Stock Warrant otherwise entitled to receive a fractional share of Parent Common Stock pursuant to
Section 1.13(b) shall be entitled to receive in lieu thereof an amount in cash (without interest) determined by multiplying such fraction (rounded to the nearest one-hundredth of a share) by the Parent Common Stock Value. For purposes of
determining any cash payable in lieu of fractional shares of Parent Common Stock, all Earnout Consideration payable to each such holder at any single payment date of any Earnout Consideration in respect of all shares of Series 2 Preferred Stock and
Series 1 Preferred Stock and each Preferred Stock Warrant held by such holder as of immediately prior to such payment date shall be aggregated. 

(d) In the event that, at any time from and after the date hereof and prior to the payment of any Earnout Consideration pursuant to this
Agreement, Parent shall pay a dividend in, split in a greater number of shares, combine into a smaller number of shares, or issue by reclassification, any shares of Parent Common Stock, then the Parent Common Stock Value and any other similarly
dependent items, as the case may be, shall be appropriately adjusted to provide to Parent and the holders of Series 2 Preferred Stock, Series 1 Preferred Stock and Preferred Stock Warrants who have made a valid Stock Election pursuant hereto the
same economic effect as contemplated by this Agreement prior to such action, and as so adjusted shall, from and after the date of such event, be the Parent Common Stock Value or other dependent item, as applicable, subject to further adjustment in
accordance with this sentence. 
 (e) The Earnout Shares issuable by Parent shall be issued in reliance on available exemptions
from registration requirements under applicable securities Laws. 
 (f) Operation of Surviving Company. Schedule
1.13(f) sets forth certain covenants with respect to the operation of the Surviving Company during the Earnout Period and certain methodologies to be followed in determining whether the milestones set forth on the Earnout Calculation Schedule
have been achieved and whether the Earnout Consideration, if any, will be payable to the Securityholders in accordance with this Agreement. 
  

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 (g) Earnout Statement. 

(i) Within 45 days following July 3, 2011, October 2, 2011, and the end of the Earnout Period, Parent shall
deliver (i) a statement (an “Earnout Statement”) to the Representative containing Parent’s calculation of the Earnout Consideration payable at any such time as a result of the financial results achieved by the Surviving
Company to any such above referenced date during the Earnout Period (the “Preliminary Earnout Consideration”) and (ii) reasonable records and work papers related to the calculations set forth on any such Earnout Statement.

 (ii) Parent shall permit the Representative and its accountants to review promptly upon reasonable request,
on-site or otherwise, during normal business hours, all records and work papers prepared or used by Parent in connection with the preparation of each Earnout Statement and to take copies of the same. Parent shall use commercially reasonable efforts
to respond to inquiries from the Representative related to such review. Parent shall use reasonable efforts to provide access to the books and records of the Company to the Representative electronically in connection with its review of the Earnout
Statement. The Representative shall have thirty (30) Business Days after receipt of the Earnout Statement (the “Dispute Period”) to dispute any or all amounts or elements of such Earnout Statement (“Dispute”).
The Representative shall provide to Parent, prior to the end of the Dispute Period, written notice of Disputes, if any (a “Dispute Notice”), setting forth in reasonable detail the amounts included in the Earnout Statement with which
the Representative disagrees, if any. If the Representative does not deliver a Dispute Notice to Parent prior to the end of the Dispute Period, the Earnout Statement for the Earnout Period shall be deemed to be final and binding upon Parent, the
Representative and the Securityholders in the form in which it was delivered to the Representative by Parent. If the Representative delivers to Parent a Dispute Notice prior to the end of the Dispute Period, the Parties shall follow the dispute
resolution procedures set forth in Schedule 1.13(g). For purposes of this Agreement, “Final Determination” of an Earnout Statement shall mean the final determination pursuant to this Section 1.13 and Schedule
1.13(a) and, to the extent applicable, Section 1.13(g). 
 “Final Determination Date” shall mean
the date of the Final Determination. 
 (h) Tax Reporting. The Securityholders and Parent shall to the extent permitted
by applicable Law treat and report for applicable Tax and financial reporting purposes any Earnout Consideration as payment of additional Merger Consideration, except that a portion of the Earnout Consideration shall constitute interest as
determined using the appropriate applicable federal rate (as defined in Section 1274(d) of the Code and the Treasury Regulations thereunder), and shall be treated and reported by Securityholders and Parent as interest for such purposes.

 1.14 Organizational Documents of the Surviving Company. The Certificate of Incorporation and Bylaws of the Surviving
Company shall be as set forth in Exhibits J and K, respectively (the “Surviving Company Organizational Documents”). 
  

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 1.15 Directors and Officers of the Surviving Company. The directors and officers
set forth on Schedule 1.15 shall be the directors and officers of the Surviving Company, effective as of the Effective Time, until their successors shall have been duly elected and qualified or until their earlier death, resignation or
removal. 
 1.16 Securityholders’ Representative; Actions. 

(a) Appointment. By virtue of the approval of this Agreement and the Agreement of Merger and/or the cancellation of Company
Options and Company Warrants in exchange for Merger Consideration pursuant to this Agreement, by the consummation of the Merger or participating in the Merger and receiving the benefits thereof, including the right to receive the consideration
payable in connection with the Merger, the Securityholders irrevocably nominate, constitute and appoint Shareholder Representative Services LLC as the agent and true and lawful attorney-in-fact of the Securityholders (the
“Representative”), with full power of substitution, to act in the name, place and stead of the Securityholders for purposes of executing any documents and taking any actions that the Representative may, in the Representative’s
sole discretion, determine to be necessary, desirable or appropriate in connection with the following: (i) the review, determination and distribution (if applicable) of Adjustment Amount pursuant to Section 1.10, (ii) the
review and determination of the Earnout Consideration pursuant to Section 1.13, and (iii) the defense and settlement of any claim by a Parent Indemnified Person for indemnification, compensation, set-off or reimbursement under
Article 8; provided, however, that such authority shall extend solely to the review and determination of such amounts pursuant to the Sections 1.10 and Section 1.13 and the defense and settlement of any claims by a
Parent Indemnified Person for set-off or indemnification to be funded solely and exclusively from the set-off rights of Parent or from the Indemnification Escrow Amount (it being understood and hereby agreed that the Representative shall not have
any authority to bind any Securityholder to any agreement, commitment, settlement or otherwise in any manner whatsoever other than the release of funds from the Indemnification Escrow Account or exercise of set-off rights). 

(b) Authority. The Securityholders grant to the Representative full authority to execute, deliver, acknowledge, certify and file
on behalf of such Securityholders (in the name of any or all of the Securityholders or otherwise) any and all documents that the Representative may, in his sole discretion, determine to be necessary, desirable or appropriate, in such forms and
containing such provisions as the Representative may, in his sole discretion, determine to be appropriate, in performing his duties as contemplated by Section 1.16(a). Notwithstanding anything to the contrary contained in this Agreement or in
any other agreement executed in connection with the transactions contemplated hereby: (i) each Parent Indemnified Person shall be entitled to deal exclusively with the Representative on all matters relating to any claim for indemnification,
set-off, compensation or reimbursement under Article 8, under the Indemnification Escrow Agreement or in connection with Parent’s set-off rights within the scope of the Representative’s authority under Section 1.16(a); and
(ii) each Parent Indemnified Person shall be entitled to rely conclusively (without further evidence of any kind whatsoever) on any document executed or purported to be executed on behalf of any Securityholder by the Representative within the
scope of the Representative’s authority under Section 1.16(a), and on any other action taken or purported to be taken on behalf of any Securityholder by the Representative within the scope of the Representative’s authority under
Section 1.16(a), as fully binding upon such Securityholder. Each Securityholder hereby agrees to receive correspondence from the Representative, including in electronic form. By giving notice to the Representative in the manner provided by
Section 10.1, Parent shall be deemed to have given notice to all Securityholders. 
  

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 (c) Power of Attorney. The Securityholders recognize and intend that the power of
attorney granted in Section 1.16(a): (i) is coupled with an interest and is irrevocable; (ii) may be delegated by the Representative; and (iii) shall survive the death, incapacity, dissolution, liquidation or winding up of each
of the Securityholders. 
 (d) Replacement. If the Representative shall die, resign, become disabled or otherwise be
unable to fulfill its responsibilities hereunder, the Securityholders shall (by consent of those Persons entitled to at least a majority of the Merger Consideration), within ten (10) days after such death, resignation, disability or inability,
appoint a successor to the Representative (who shall be reasonably satisfactory to Parent) and immediately thereafter notify Parent of the identity of such successor. Any such successor shall succeed the Representative as Representative hereunder.
If for any reason there is no Representative at any time, all references herein to the Representative shall be deemed to refer to the Securityholders. 

(e) Expenses. At the Effective Time, Parent shall cause the Expense Escrow Amount to be deposited with the Escrow Agent, such
deposit to constitute a source of reimbursement for any actual out-of-pocket costs and expenses incurred by the Representative in connection with the performance of its duties and responsibilities hereunder (the “Expense Escrow
Fund”). The Expense Escrow Fund shall be used to reimburse the actual out-of-pocket costs and expenses (including legal, accounting and other advisors’ fees and expenses, if applicable) incurred by the Representative in performing all
of its duties and obligations as the Representative hereunder. Each Securityholder hereby authorizes the Representatives to enter into an escrow agreement (the “Representative Expense Escrow Agreement”) with the Escrow Agent under
such terms and conditions as may be agreed upon by the Representative and the Escrow Agent consistent with the terms hereof and in a form reasonably acceptable to Parent. If any portion of the Expense Escrow Amount is disbursed to the
Securityholders from the Expense Escrow Fund at the discretion of the Representative, such disbursement shall be allocated among the Securityholders pursuant to the provisions of the Representative Expense Escrow Agreement and this Agreement in
accordance with the Spreadsheet. 
 (f) Costs and expenses (including attorneys’ fees and court costs) incurred by the
Representative in defending any claim, demand, suit, action or cause of action or otherwise performing its obligations under this Agreement, the Indemnification Escrow Agreement or the Expense Escrow Agreement may be paid, at the election of the
Representative, at any time (i) from the Expense Escrow Amount to the extent any funds remain with the Expense Escrow Agent; or (ii) otherwise from the Securityholders in accordance with their respective Securityholders’ Percentage.

  

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 (g) Indemnification. The Representative shall not be liable to any Securityholder
for any act or omission taken pursuant to or in conjunction with this Agreement, except for its, his or her own gross negligence or willful misconduct. The Securityholders shall indemnify and hold the Representative, and each successor thereof,
harmless from any and all losses, liabilities and expenses (including, without limitation, counsel fees) which may arise out of any action taken or omitted by it, him or her as Representative in accordance with this Agreement or the Indemnification
Escrow Agreement, as the same may be amended, modified or supplemented, except such liability and expense as may result from the gross negligence or willful misconduct of the Representative. If not paid directly to the Representative by the
Securityholders, any such losses, liabilities or expenses may be recovered by the Representative from the funds in the Expense Escrow Fund and the Indemnification Escrow Account otherwise distributable to the Securityholders pursuant to the terms
hereof and the Indemnification Escrow Agreement and Expense Escrow Account at the time of distribution; provided that while this section allows the Representative to be paid from the Expense Escrow Fund and the Indemnification Escrow Account, this
does not relieve the Securityholders from their obligation to promptly pay such losses, liabilities or expenses, nor does it prevent the Representative from seeking any remedies available to it at law or otherwise. 

(h) Upon Closing, the Company shall deliver to the Representative (i) a copy of the Information Statement; (ii) a copy of the
Spreadsheet; (iii) a copy of the Estimated Closing Statement; and (iv) a copy of the Statement of Estimated Transaction Expenses. 

ARTICLE 2 

REPRESENTATIONS AND WARRANTIES OF THE COMPANY 

Except as set forth in the schedules prepared by the Company delivered to Parent prior to the execution of this Agreement setting forth
specific exceptions to the Company’s representations and warranties set forth herein (which exceptions shall specifically identify the section, subsection, paragraph or clause of a single section or subsection hereof, as applicable, to which
such exception relates and be limited in their effect to such identified, sections, subsections, paragraphs or clauses, except where it is readily apparent from the face of such disclosure that such exception relates to another section, subsection,
paragraph or clause, in which case it shall also be applicable to such other provision without additional disclosure), the Company hereby makes the following representations and warranties to Parent and Acquisition Subsidiary: 

2.1 Organization, Qualification and Power. 

(a) The Company is a company duly organized, validly existing and in good standing under the laws of the State of California. The Company
has made available to Parent true, complete and correct copies of the Articles of Incorporation (the “Articles”) and Bylaws of the Company, as amended to date (together, the “Company Organizational Documents”).

 (b) The Company has all requisite power and authority to own, lease and use its assets and properties and to conduct the
business in which it is currently engaged. The Company is duly licensed and qualified to do business as a foreign corporation and is in good standing in the state(s), countries or other jurisdictions listed on Schedule 2.1. The Company is not
required to be licensed or qualified to do business in any other jurisdiction, except where the failure to be so qualified would not individually or in the aggregate, subject the Company to any material liability or otherwise adversely affect the
Company in any material respect. 
  

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 2.2 Subsidiaries. Other than the entities listed on Schedule 2.2, the
Company does not, directly or indirectly, own or have the right or the obligation to acquire and has not, directly or indirectly, owned or had the right or the obligation to acquire any capital stock, equity or similar interest in, or any interest
convertible or exchangeable or exercisable for, any capital stock, equity or similar interest in, any Person. The Company does not have any Subsidiaries. For purposes of this Agreement, “Subsidiary” means, with respect to any
Person, any corporation, association limited liability company or other business entity of which more than fifty percent (50%) of the total voting power of shares of stock (or equivalent ownership or controlling interest) entitled (without
regard to the occurrence of any contingency) to vote in the election of directors, managers or trustees thereof is at the time owned or controlled, directly or indirectly, by that Person or one or more of the other subsidiaries of that Person or a
combination thereof. 
 2.3 Capitalization and Related Matters. 

(a) The authorized capital stock of the Company consists solely of 55,000,000 shares of Common Stock, of which 481,225 shares are issued
and outstanding, 2,000,000 shares of Series 1 Preferred Stock, of which 1,711,572 shares are issued and outstanding and 43,000,000 shares of Series 2 Preferred Stock, of which 23,399,198 shares are issued and outstanding (each, a
“Share” and, collectively, the “Shares”). Schedule 2.3(a) lists each holder of record of the Shares and the class and number of Shares owned by such holder. All of the Shares were duly authorized and validly
issued and are fully paid and non-assessable. 
 (b) Except as set forth on Schedule 2.3(b) (all of which will be
terminated at the Closing) and Parent’s rights pursuant to this Agreement, (i) there are no authorized or outstanding (A) securities of the Company other than the Shares or (B) warrants, preemptive rights, other rights, or
options with respect to any securities of the Company or any securities or right convertible into, exchangeable for, or evidencing the right to subscribe for, any shares of the Company’s capital stock, and (ii) neither the Company nor any
of the Securityholders is subject to any obligation to issue, sell, deliver, redeem, or otherwise transfer, acquire or retire the Shares or any other securities of the Company. There are no shareholder agreements, buy-sell agreements, voting trust
or other agreement or understanding to which the Company is a party or to which it is bound with respect to the Shares. Schedule 2.3(b) sets forth a list of each outstanding and unexercised warrant, option or unit appreciation right
exercisable for Shares in the Company and the exercise price of each such outstanding and unexercised warrant, option or stock appreciation right immediately prior to the Effective Time and separately, at the Effective Time as a result of the Merger
reflecting any acceleration of vesting or adjustment to purchase price or exercise price of such option or warrant, the date of grant and the vesting schedule. There are no unpaid dividends (accrued but unpaid, declared but unpaid or otherwise) on
the Shares. 
  

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 (c) Schedule 1.6(a) lists each holder of the Company Options and Schedule
1.6(b) lists each holder of the Company Warrants and the number of Shares that are issuable upon exercise of such Company Options or Company Warrants, respectively, immediately prior to the Closing hereunder, together with the exercise price(s)
applicable to such Company Options or Company Warrants. Following the Closing, none of the Company Options or the Company Warrants may be exercised for Shares or other shares of capital stock or securities of the Company or any other Person, and the
only right of any holder of Company Options and Company Warrants upon the Closing is the right to receive the amount, if any, of Merger Consideration as set forth in Section 1.6(a) or Section 1.6(b), as the case may be. All
of the Company Options were duly authorized and were validly issued in accordance with the terms of the Company’s 2003 Stock Plan or 2010 Equity Incentive Plan. All of the Company Warrants were duly authorized and were validly issued in
accordance with the terms of the warrant agreement with respect thereto. 
 (d) All of the Shares, Company Options and Company
Warrants and all other securities of the Company have been issued in accordance with applicable federal and state securities laws. The transactions contemplated by this Agreement are not subject to any preemptive rights. 

(e) Each of the amounts payable to the Securityholders under Section 1.5 or under Section 1.6(a) or
Section 1.6(b) has been calculated and will be paid (when paid in accordance with and subject to the terms of this Agreement) in accordance with and subject to all terms of the Articles of the Company as in effect at the Effective Time,
and any other agreements binding upon the Company or to which the Company is subject (including, without limitation, the agreements or instruments evidencing Company Options and Company Warrants) and all applicable Laws. 

(f) Upon payment by the Company of the amounts referenced in Section 6.6(a) to the participants under the Management Carveout
Plan, no Person shall have any further rights under such Management Carveout Plan and the Company will have no further liability to any Person with respect to such Management Carveout Plan. 

2.4 Authorization; Enforceability; Noncontravention. 

(a) The Company has full power and authority to enter into this Agreement and to perform its obligations hereunder and, subject to
obtaining the Company Shareholder Approval, to consummate the transactions contemplated hereby. The execution, delivery and performance of this Agreement by the Company has been duly authorized by all requisite corporate action on the part of the
Company other than, in the case of the consummation of the Merger, obtaining the Company Shareholder Approval, and no additional corporate or other actions or proceedings on the part of the Company are necessary to authorize this Agreement or the
consummation of the transactions contemplated hereby. Assuming the valid execution of this Agreement by each of Parent and Acquisition Sub, this Agreement constitutes a legal, valid and binding obligation of each of the Company, enforceable against
the Company accordance with its respective terms, except to the extent that enforceability hereof may be limited by bankruptcy and other similar laws affecting the rights and remedies of creditors generally and general equitable principles.

  

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 (b) Except as set forth on Schedule 2.4(b), the Company is not a party to,
subject to or bound by any note, bond, mortgage, indenture, deed of trust, agreement, lien, lease, contract or other instrument or obligation or any statute, law, rule, regulation, judgment, order, writ, injunction, or decree of any court,
administrative or regulatory body, governmental agency, arbitrator, mediator or similar body, franchise or license, which would (i) conflict with or be breached or violated or the rights or the obligations thereunder accelerated, increased,
extinguished or terminated (whether or not with notice or lapse of time or both) by the execution, delivery or performance by it of this Agreement or the Indemnification Escrow Agreement or (ii) prevent the carrying out of the transactions
contemplated hereby or by the Escrow Agreement or the agreements contemplated hereby or thereby. Except as set forth on Schedule 2.4(b) and except for (i) the filing and recordation of the Agreement of Merger and the related certificate
of incorporation of the Surviving Company, and (ii) such filings as may be required under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the “HSR Act”) and any applicable foreign antitrust law, no permit,
consent, waiver, approval or authorization of, or declaration to or filing or registration with, any third person or Government is required in connection with the execution, delivery or performance of this Agreement and the Indemnification Escrow
Agreement by the Company, or the consummation by the Company of the transactions contemplated hereby or by the Indemnification Escrow Agreement. The execution of this Agreement and the consummation of the transactions contemplated hereby will not
result in the creation of any Liens against the Company or any of the properties or assets of the Company. None of the execution and delivery of this Agreement or the Indemnification Escrow Agreement by the Company, the performance by the Company of
its obligations hereunder or under the Indemnification Escrow Agreement, nor the consummation of the transactions contemplated hereby or thereby will violate, conflict with or result in any breach of any provision of the Company Organizational
Documents. For purposes of this Agreement, “Lien” shall mean, with respect to any asset (including any security), any mortgage, lien, pledge, charge, security interest or encumbrance of any kind in respect of such asset; provided,
however, that the term “Lien” shall not include (i) statutory liens for Taxes, which are not yet due and payable, (ii) statutory or common law liens to secure landlords, lessors or renters under leases or rental agreements
confined to the premises rented, (iii) deposits or pledges made in connection with, or to secure payment of, workers’ compensation, unemployment insurance, old age pension or other social security programs mandated under applicable laws,
(iv) statutory or common law liens in favor of carriers, warehousemen, mechanics and materialmen to secure claims for labor, materials or supplies and other like liens, and (v) restrictions on transfer of securities imposed by applicable
state and federal securities laws. 
 (c) The affirmative vote of (i) the holders of a majority of the outstanding shares
of Common Stock and Preferred Stock voting together (on an as-converted to Common Stock basis) as a single class, (ii) the holders of at least a majority of the outstanding shares of Preferred Stock voting together as a separate class, and
(iii) the holders of at least a majority of the outstanding shares of Common Stock voting together as a separate class are the only votes of the holders of any of the Company’s capital stock necessary for purposes of approving this
Agreement and the Agreement of Merger, and consummating the Merger, in accordance with the Act, the Company Organizational Documents and any agreement or instrument by which the Company is bound (collectively, the “Company Shareholder
Approval”). 
  

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 2.5 Financial Statements. 

(a) Set forth on Schedule 2.5 are (i) the audited balance sheet of the Company as of December 31, 2007, and the
unaudited balance sheets of the Company as of December 31, 2008 and 2009 and the related audited or unaudited, as the case may be, statements of income, retained earnings and cash flows for the periods then ended, together with notes and
schedules thereto (the “Annual Financial Statements”) and (ii) the unaudited balance sheet of the Company as of April 30, 2010, and the related unaudited statements of income, retained earnings and cash flows for the
fiscal year-to-date period then ended, together with notes and schedules, if any, thereto (the financial statements described in clause (ii) being the “Interim Financials,” and together with the Annual Financial Statements, the
“Financial Statements”). For purposes of this Agreement, the unaudited consolidated balance sheet of the Company as of April 30, 2010, shall be considered the “Balance Sheet.” Schedule 2.5 lists, and the
Company has made available to Parent, copies of the documentation creating or governing all securitization transactions and “off-balance sheet arrangements” (as defined in Item 303(c) of Regulation S-K under the Securities Act
effected by the Company. To the Company’s Knowledge, Mohler, Nixon and Williams is and has been throughout the periods covered by the audited Financial Statements (x) a registered public accounting firm (as defined in Section 2(a)(12)
of the Sarbanes-Oxley Act of 2002), (y) “independent” with respect to the Company within the meaning of Regulation S-X, and (z) in compliance with subsections (g) through (l) of Section 10A of the Exchange Act and
the related Rules and the Public Company Accounting Oversight Board. Schedule 2.5 lists all non-audit services performed by Mohler, Nixon and Williams for the Company. 

(b) The Financial Statements were derived from the books and records of the Company and (i) present fairly in all material respects
the financial position, results of operations, and cash flows of the Company at the dates and for the periods indicated and (ii) have been prepared in accordance with GAAP applied consistently, subject, in the case of the Interim Financials, to
normal year-end adjustments and the absence of footnotes. 
 2.6 Books and Records; Business Practices and Financial
Controls. 
 (a) True, correct and complete copies of the books of account, stock record books, minute books, bank accounts,
and other corporate records of the Company have been made available by the Company to Parent, and such books and records have been maintained in accordance with good business practices. The minute books of the Company contain accurate and complete
records of all material meetings held of, and material action taken by, the shareholders, the Boards of Directors and committees of the Boards of Directors of the Company, and no material meeting of any such shareholders, Board of Directors or
committee of the Board of Directors has been held for which minutes have not been prepared and are not contained in such minute books. At the Closing, all of those books and records will be in the possession of the Company. 

 

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 (b) The Company has established proper and adequate internal accounting controls which
provide reasonable assurance that (i) transactions are executed with management’s authorization; (ii) transactions are recorded as necessary to permit preparation of the financial statements and to maintain accountability for its
assets; (iii) access to its assets is permitted only in accordance with management’s authorization; (iv) the reporting of its assets is compared with existing assets at regular intervals; and (v) accounts, notes and other
receivables and inventory are recorded accurately, and proper and adequate procedures are implemented to affect the collection and/or valuation thereof on a current and timely basis. 

2.7 No Undisclosed Liabilities. 

(a) The Company does not have any liabilities or obligations whatsoever, whether known or unknown, accrued, absolute, contingent,
unliquidated or otherwise, and there is no basis for any such liability or obligation or any claim in respect thereof, other than: 

(i) to the extent and for the amount reflected as a liability on the Balance Sheet; 

(ii) liabilities or obligations incurred in the Ordinary Course of Business since the date of the Balance Sheet (none of
which may reasonably be expected to have an adverse effect upon the Company) that are not required to be set forth in a Schedule hereto; 

(iii) obligations for performance (but not for breach) under Contracts; and 

(iv) the other obligations and liabilities specifically disclosed on Schedule 2.7(a). 

“Ordinary Course of Business” means only the ordinary course of commercial operations customarily engaged in by such Person
consistent with past practices, and specifically does not include (a) activity (i) involving the purchase or sale of such Person or any product line or business unit thereof, (ii) involving assumption, adoption, or modification of any
Plan or (iii) that requires approval by the Board of Directors or Managers, as applicable, managers, equity holders or members of such Person, or (b) the incurrence of any liability for any tort or any breach or violation of or default
under any Contract or Law. 
 2.8 Taxes. 

Except as set forth on Schedule 2.8: 

(a) The Company has filed, or caused to be filed, on a timely basis all Tax Returns required to be filed, and such Tax Returns are true,
correct and complete in all material respects. Without limiting the foregoing, none of the Tax Returns contains any position that is, or would be, subject to penalties under section 6662 of the Internal Revenue Code (“Code”) (or any
corresponding provisions of state, local or non-U.S. Tax law). The Company has not entered into any “listed transactions” as defined in Treasury regulation 1.6011-4(b)(2), and the Company has properly disclosed all reportable transactions,
if any, as required by Treasury regulation 1.6011-4, including filing Form 8886 with Tax Returns and with the Office of Tax Shelter Analysis. 
  

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 (b) Schedule 2.8(b) lists all Tax Returns required to be filed by the Company for
periods up to the Closing Date (whether or not the period ends on such date) that have not been filed on or before the Closing Date. The Company is not currently the beneficiary of any extension of time within which to file any Tax Return.

 (c) All Taxes due and owing by the Company (whether or not reflected on any Tax Return) have been timely and fully paid.

 (d) The Company has timely and properly withheld and paid all Taxes required to have been withheld and paid in connection
with any amounts paid or owing to any employee, independent contractor, creditor, stockholder, or other third party, including, but not limited to, amounts required to be withheld under Section 1441 and 1442 of the Code (or similar provisions
of state, local or non-U.S. Law). 
 (e) Within the last ten (10) years, the Company has not acquired the assets of any
corporation in a transaction described in Section 381(a) of the Code. 
 (f) The reserve for Tax liability (excluding any
reserve for deferred Taxes established to reflect timing differences between book and Tax income) reflected in the Interim Financial Statements and on the Balance Sheet, respectively, has been established in accordance with GAAP. 

(g) There are no Liens for Taxes (other than for current Taxes not yet due and payable) upon any assets of the Company and no such Liens
are anticipated. 
 (h) The Company is not a party to or bound by any Tax indemnity, Tax sharing or Tax allocation agreement or
arrangement. 
 (i) The Company (i) is not and never has been a member of an “affiliated group” within the
meaning of Section 1504 of the Code (other than any such group the common parent of which is the Company) and (ii) does not have any liability for the Taxes of any Person other than the Company under Treasury regulation
Section 1.1502-6 (or similar provision of state, local or non-U.S. law) as a transferee or successor, by contract or otherwise. 

(j) The Company is not a party to or a partner in any joint venture, partnership or other arrangement or contract that, to the
Company’s Knowledge, could be treated as a partnership for federal Income Tax purposes. 
 (k) No claim has ever been made
by a taxing authority in a jurisdiction where the Company does not file Tax Returns that it is or may be subject to taxation by that jurisdiction. 

(l) To the Company’s Knowledge, no federal, state, local or non-U.S. Tax audits or administrative or judicial Tax proceedings are
pending or being conducted with respect to the Company. 
  

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 (m) The Company has not received from any federal, state, local or non-U.S. Tax
authority (including jurisdictions where the Company has not filed a Tax Return) any (i) written notice indicating an intent to open an audit or other review; (ii) written request for information related to Tax matters; or
(iii) written notice or deficiency or proposed adjustment for any amount of Tax proposed, asserted, or assessed by any Tax authority against the Company. 

(n) The federal, state and foreign net operating loss, net capital loss or net tax credit carryforward (collectively, the
“Tax Attributes”) of the Company through the date of the most recently filed applicable Tax Return are set forth in Schedule 2.8(n). The Company has entered into an agreement with the Commissioner of the Internal Revenue
Service attached to Schedule 2.8(n) (the “Energy Credit Agreement”) pursuant to which the Company has been allocated approximately $18 million in Department of Energy credits, subject to the terms and conditions thereof, and
such Energy Credit Agreement is in full force and effect, and to the Company’s knowledge, such Department of Energy credits will not be limited solely as a result of the Merger. 

(o) The Company has not waived any statutes of limitation in respect of Taxes or agreed to any extension of time with respect to a Tax
assessment or deficiency. 
 (p) True, correct and complete copies of all Income Tax Returns, Tax examination reports and
statements of deficiencies assessed against, or agreed to with respect to the Company with respect to the last three years with the Internal Revenue Service or any other taxing authority have been made available to Parent. 

(q) The Company is not a party to any agreement, contract, arrangement or plan that has resulted or would result, in a payment that would
not be fully deductible as a result of Section 162(m) or Section 280G of the Code or any similar provision of non-U.S., state, or local law. 

(r) None of the assets of the Company has been financed with or directly secures any debt the interest on which is tax-exempt under
Section 103(a) of the Code. The Company is not a borrower or guarantor of any outstanding industrial revenue bonds. 
 (s)
None of the assets of the Company is “tax-exempt use property” within the meaning of Section 168(h) of the Code. 

(t) The Company has not constituted either a “distributing corporation” or a “controlled corporation” in a
distribution of stock intended to qualify for tax-free treatment under Section 355 of the Code (i) in the two years prior to the date of this Agreement or (ii) in a distribution which could otherwise constitute part of a
“plan” or “series of related transactions” (within the meaning of Section 355(e) of the Code) in conjunction with the transactions contemplated by this Agreement. 

(u) The Company has not been a United States real property holding corporation within the meaning of Section 897(c)(2) of the Code
during the applicable period specified in Section 897 of the Code. 
  

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 (v) The Company will not be required to include any item of income in, or exclude any
item of deduction from, taxable income for any taxable period (or portion thereof) ending after the Closing Date as a result of any (i) change in method of accounting for a taxable period ending on or prior to the Closing Date;
(ii) “closing agreement” as described in Section 7121 of the Code executed on or prior to the Closing Date; (iii) installment sale or open transaction disposition made on or prior to the Closing Date; or (iv) prepaid
amount received on or prior to the Closing Date. 
 (w) As used in this Agreement, “Taxes” means all taxes,
charges, fees, levies, or other like assessments, including without limitation, all federal, possession, state, city, county and non-U.S. (or governmental unit, agency, or political subdivision of any of the foregoing) income, profits, employment
(including Social Security, unemployment insurance and employee income tax withholding), franchise, gross receipts, sales, use, transfer, stamp, occupation, property, any governmental rights to unclaimed property, capital, severance, premium,
windfall profits, customs, duties, ad valorem, value added and excise taxes; PBGC premiums and any other governmental charges of the same or similar nature; including any interest, penalty, or addition thereto, whether disputed or not and including
any obligations to indemnify or otherwise assume or succeed to the Tax liability of any other Person (for example, by reason of transferee liability or application of Treasury regulation 1.1502-6). Any one of the foregoing shall be referred to
sometimes as a “Tax.” 
 (x) As used in this Agreement, “Tax Returns” means all returns,
reports, estimates, claims for refund, information statements or returns relating to or required to be filed in connection with any Taxes, including any schedule or attachment thereto, and including any amendment thereof. Any one of the foregoing
Tax Returns shall be referred to sometimes as a “Tax Return.” 
 2.9
Assets and Real Property. 
 (a) Except as set forth on Schedule 2.9(a), the Company is the sole
owner of all right, title, and interest in and to all assets reflected as being owned by it on the Balance Sheet and all other assets and property, real and personal, tangible and intangible owned, held or used by it, other than (i) any
property or assets leased to the Company or (ii) Intellectual Property licensed to the Company (collectively, the “Assets,” and together with (i) all property or assets leased to the Company and (ii) Intellectual
Property licensed to the Company the “Property”), and, except as set forth on Schedule 2.9(a), there exists no restriction on the use or transfer of the Property (other than with respect the restrictions set forth in the Real
Property Leases). No Property is in the possession of others and the Company does not hold any property on consignment. The Company has (i) good title to all of the Assets, free and clear of all Liens, and (ii) a valid leasehold interest
in all of the leased Property or a valid license right to use all of the licensed Property, free and clear of all Liens. Upon the Closing, the Company shall continue to be vested with good title to, or a valid leasehold interest or license right
interest in, the Property. 
 (b) All of the tangible Property (excluding the Leased Real Property) has been maintained in
accordance with normal industry practice, is in good operating condition and repair (subject to normal wear and tear), and is suitable for the purposes for which it is presently used. 

 

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 (c) The Company does not own and has never owned in fee any real property interests.

 (d) Schedule 2.9(d)-1 contains a complete and accurate list of all real property interests leased by the Company as
tenant (collectively, the “Leased Real Property”). Except as set forth in Schedule 2.9(d)-2, the Company holds a valid leasehold interest in the Leased Real Property, and each lease pursuant to which the Company leases such
Leased Real Property as a tenant (the “Real Property Leases”) is enforceable against the Company and the applicable landlord(s), in accordance with its terms, except to the extent that such enforcement may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium, and other similar Laws affecting creditors’ rights generally and by general principles of equity (regardless of whether enforceability is considered in a proceeding in equity or at law).
Schedule 2.9(d)-2 contains a complete and accurate list of all Real Property Leases. Neither the Company nor, to the Company’s Knowledge, the applicable landlord, is in default in any material respect in the performance, observance or
fulfillment of any obligation, covenant or condition contained in any Real Property Lease to which it is a party or bound which would likely result in the termination or cancellation thereof, and no event caused by, relating to or affecting the
Company or otherwise, has occurred that (with or without the giving of notice or lapse of time, or both) would constitute a default in any material respect by the Company thereunder which would likely result in the termination or cancellation
thereof. The Real Property Leases are without modification (written or oral) except as set forth in Schedule 2.9(d)-2 and true, accurate and complete copies of all documents comprising the same, with all supplements, amendments and exhibits
thereto, have been made available by the Company to Parent. Each such Real Property Lease leasehold interest is valid, subsisting and in full force and effect. The Company has not assigned, transferred or conveyed its interests in the Real Property
Leases. Except as set forth on Schedule 2.4(b), no consent, waiver, approval or authorization of any third person is required under the Real Property Leases in connection with the execution, delivery or performance of this Agreement and the
Indemnification Escrow Agreement by the Company or the Representative, or the consummation by the Company or the Representative of the transactions contemplated hereby or by the Indemnification Escrow Agreement. 

(e) There are no leases, subleases, licenses, concessions or other agreements of the Company, written or oral, granting to any person or
entity the right to use or occupy any portion of the Leased Real Property, and no person or entity (other than the Company) is in possession of any portion of the Leased Real Property. 

 

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 (f) Except as set forth in Schedule 2.9(f), (i) to the Company’s
Knowledge, all water, gas, electrical, steam, compressed air, sanitary and storm sewage lines and other utilities and systems serving the Leased Real Property are sufficient as to capacity to enable the continued operation of the Leased Real
Property by the Company as currently operated (and the Company has paid all initial tap fees, connection fees and the like to the extent required under applicable Real Property Leases); (ii) the Company has not received any written or express
notice, order or proposal concerning the Company’s use of the Leased Real Property which would adversely affect in any material respect the use or enjoyment of the Leased Real Property or access by the Company to or from any Leased Real
Property; (iii) the Company has not received any written or express notice for any unpaid rent in respect of any land or buildings that have at any time been owned and/or occupied and/or used by the Company but which are no longer owned,
occupied or used by the Company; (iv) the Company has not given any guarantee relating to the Leased Real Property; (v) to the extent required to be maintained by the Company under the Real Property Leases, the improvements on or otherwise
constituting the Leased Real Property, and the related HVAC, plumbing, drainage, electrical and mechanical systems are in good operating condition and repair and conform to all Laws, except as would not adversely affect the Company, and, to the
Company’s Knowledge, to the extent required to be maintained by the applicable landlord and/or sublandlord under the Real Property Leases, the improvements on or otherwise constituting the Leased Real Property, and the related HVAC, plumbing,
drainage, electrical and mechanical systems are in good operating condition and repair and conform to all Laws, except as would not adversely affect the Company; (vi) to the Company’s Knowledge, no existing or intended use of any adjacent
or nearby real property would adversely affect the use of the Leased Real Property in any material manner, and the Company has received no written or express notice of any such existing or intended use; (vii) the Company has received no written
or express notice of any current or pending eminent domain proceeding that would result in the taking of all or any material part of any of the Leased Real Property; and (xi) from and after March 31, 2010, to and including the date of this
Agreement, there have been no casualty losses exceeding $35,000, in the aggregate, affecting the Leased Real Property. 
 2.10
Necessary Property. The Property constitutes all property and property rights now used or necessary for the conduct of the Company’s business in the manner and to the extent presently conducted by the Company. There exists no
condition, restriction or reservation affecting the title to or utility of the Property (other than with respect the restrictions set forth in the Real Property Leases) or that would prevent the Surviving Company from enforcing its rights with
respect to its Property immediately after the Effective Time to the same full extent that the Company could immediately prior to the Effective Time. 

2.11 Accounts Receivable; Inventories. 

(a) Set forth on Schedule 2.11(a) are a list of all the accounts receivable of the Company and an aging schedule relating thereto,
each as of the end of the last completed calendar month prior to the date hereof and as of the end of the last completed calendar month prior to Closing Date. Such accounts receivable and any accounts receivable arising between such date and the
Closing Date (collectively, the “Accounts Receivable”) are valid and subsisting, and except as set forth on Schedule 2.11(a) all such Accounts Receivable arose in the Ordinary Course of Business. Except to the extent of the
allowance for doubtful accounts on the Balance Sheet, the Accounts Receivable are fully collectible and no Account Receivable is subject to any counterclaim, set-off, defense, security interest, claim, or other encumbrance. No agreement for
deduction, free goods, discount or other deferred price or quantity adjustment has been made with respect to any Account Receivable except as set forth on Schedule 2.11(a). The Company have not invoiced or otherwise charged any of its
respective customers for amounts in excess of the amounts that such customer had theretofore agreed to pay for the good and services provided to it by the Company. 

 

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 (b) The inventories of the Company are of a quality and quantity useable and saleable in
the Ordinary Course of Business, subject to appropriate and adequate allowances reflected on the Financial Statements for obsolete, excess, slow-moving, lower of cost or market and other reserves required under GAAP. Such allowances have been
calculated in accordance with GAAP and in a manner consistent with the past practice of the Company. None of the inventory of the Company is held on consignment, or otherwise, by third parties. Set forth on Schedule 2.11(b) is a list of all
the inventories of the Company, each as of the end of the last completed calendar month prior to the date hereof and the end of the last completed calendar month prior to the Closing Date. 

2.12 Contracts and Commitments. 

(a) Except as set forth on Schedule 2.12(a)(i)-(xxi) or with respect to Company Intellectual Property Agreements which to the
extent required are disclosed on Schedule 2.14(c) or with respect to Real Property Leases which to the extent required are disclosed on Schedule 2.9(d)-2, the Company is not party to or otherwise obligated under any of the following,
whether written or oral: 
 (i) Any contract, agreement or purchase order providing for the sale of products, the
provision of services or warranty liability in excess of $15,000, in any such case, by the Company to any other Person; 

(ii) Any single contract or purchase order (other than the Plans set forth in Schedule 2.24) providing for an
expenditure by the Company in excess of $15,000 or any contracts or purchase orders with the same or affiliated vendor(s) providing for an expenditure by the Company in excess of $15,000; 

(iii) Any contract providing for an expenditure by the Company for the purchase, lease or sale of any real property;

 (iv) Any contract, bid or offer to sell products or to provide services to third parties which (A) the
Company knows or has reason to believe is at a price which would result in a net loss to the Company on the sale of such products or provision of such services, (B) contains terms or conditions which the Company cannot reasonably expect to
satisfy or fulfill in whole or in part, (C) would permit such a third party to seek or recover consequential damages, (D) does not contain a cap on damages or (E) provides for liquidated damages; 

(v) Any purchase commitment for materials, supplies, component parts or other items or services in excess of the normal,
ordinary, usual and current requirements of the Company or at a price in excess of the current reasonable market price (A) at the time of such commitment or (B) at the time of expected delivery of such materials, supplies, component parts
or other items or services; 
  

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 (vi) Any contract pursuant to which the Company is the lessee or
sublessee of, or holds or operates, any personal property owned or leased by any other Person or entity (other than leases of personal property leased in the Ordinary Course of Business with annual lease payments no greater than $15,000);

 (vii) Any contract pursuant to which the Company is the lessor, sublessor or lessee of, or permits any third
party to operate, any real or personal property owned or leased by any Securityholder or an officer or employee of the Company or, to the Company’s Knowledge, any Affiliate thereof; 

(viii) Any revocable or irrevocable power of attorney granted to any Person for any purpose whatsoever; 

(ix) Any loan agreement, indenture, promissory note, conditional sales agreement, mortgage, security agreement, pledge,
letter of credit arrangement, guarantee, endorsement, foreign exchange contract, commodity contract, interest rate or other derivative contract, accommodation or other similar type of contract or agreement, and in any event, including each
instrument, contract or agreement evidencing or relating to Indebtedness (together, in each applicable case, with the outstanding principal balance thereof, accrued but unpaid interest thereon, prepayment penalties associated therewith and total
payoff amount as of the payoff date specified thereon); 
 (x) Any assumption, surety, guarantee, support,
indemnity or other similar type contract or agreement guaranteeing or supporting the obligations of or indemnifying another Person; 

(xi) Any arrangement or other agreement which involves (A) a sharing of profits or (B) any joint venture,
partnership or similar contract or arrangement. 
 (xii) Any sales agency, sales representation, consulting,
distributorship or franchise agreement that is not terminable in 90 days or less without cost or penalty; 

(xiii) Any contract (A) prohibiting competition by the Company, (B) prohibiting the Company or its employees
from freely engaging in any business anywhere in the world, or (C) prohibiting the disclosure of trade secrets or other confidential or proprietary information (in the case of (C), other than nondisclosure agreements entered into in the
Ordinary Course of Business); 
 (xiv) Any material contract or commitment not made in the Ordinary Course of
Business; 
 (xv) Any contract pursuant to which the Company has entered into or has agreed to enter into any
hedging or similar transactions; 
 (xvi) Any contract pursuant to which the Company has acquired or disposed of
or has agreed to acquire or dispose of any securities or any business or product line or the like; 
  

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 (xvii) Any license, sublicense, assignment or agreement that are
included in or related to the Company Intellectual Property; 
 (xviii) Any contract or commitment providing for
the payment of cash or other benefits upon the sale, merger or other change of control of the Company or a substantial portion of the respective assets of any of them; 

(xix) Any contract or commitment with a Securityholder with respect to any debt or equity financing transaction;

 (xx) Any director and officer indemnification agreements, including those set forth on Schedule 5.4(b);
and 
 (xxi) Any other contract or commitment which is not cancelable without penalty on 30 days notice or less
and which is not specifically described on any other Schedule to this Agreement. 
 2.13 Validity of Contracts.
Each written or oral contract, agreement, commitment, license, lease, indenture, or evidence of Indebtedness to which the Company is a party or is otherwise obligated (individually, a “Contract” and collectively, the
“Contracts”) set forth or required to be set forth on Schedules 2.12(a)(i)-(xxi) or as disclosed or required to be disclosed on Schedule 2.14(c) is a valid, binding and enforceable obligation of the Company and,
to the Company’s Knowledge, the other parties thereto in accordance with its terms and conditions, except to the extent that enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, and other similar Laws
affecting creditors’ rights generally and by general principles of equity. Neither the Company nor, to the Company’s Knowledge, any other party to any of the Contracts set forth or required to be set forth on Schedules
2.12(a)(i)-(xxi) or as disclosed or as required to be disclosed on Schedule 2.14(c) is in default in any material respect under or in violation in any material respect of such Contract, and there are no disputes pending or, to the
Company’s Knowledge, threatened with regard to any such Contract. Except as set forth on Schedule 2.13, no event has occurred which, with the passage of time or the giving of notice, or both, would constitute a default in any material
respect under or a violation in any material respect of any Contract set forth or required to be set forth on Schedules 2.12(a)(i)-(xxi) or 2.14(c) by the Company or, to the Company’s Knowledge, any other party to such
Contract or would cause the acceleration of any obligation of any party thereto or the creation of a Lien upon any Property or any of the equity interests of the Company, or, would require any consent thereunder. The Company has made available to
Parent, a true, complete and accurate copy of each written Contract disclosed or required to be disclosed on Schedule 2.12(a) or Schedule 2.14(c) and a true, complete and accurate description of each oral Contract disclosed or
required to be disclosed on Schedule 2.12(a) or Schedule 2.14(c), and none of such Contracts has been modified or amended in any material respect, except as reflected in such disclosure to Parent. All work for each Contract which
has been fully invoiced (i.e., the aggregate amount of invoices with respect to each such Contract equals or exceeds the total contract price) has been fully and completely performed in accordance with the Contract specifications with respect to the
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 2.14 Intellectual Property. 

(a) For purposes of this Agreement, the following terms shall have the identified meanings: 

(i) “Intellectual Property” means: intellectual property of any type throughout the world, including, but
not limited to: (i) patents, patent applications and statutory invention registrations, including, but not limited to, continuations, continuations-in-part, divisions, provisionals, non-provisionals, reexaminations, reissues and extensions
(“Patents”); (ii) trademarks, service marks, trade names, brand names, logos and corporate names, slogans and other legally protectable indicia of source of origin, whether or not registered, including all common law rights
thereto and all goodwill associated therewith, and registrations and applications for registration thereof; (iii) copyrights, whether registered or unregistered, and registrations and applications for registration thereof; (iv) trade
secrets and similar legal rights in confidential information and know-how; (v) rights in domain names; (vi) rights of publicity and privacy, rights to personal information and moral rights; (vii) the foregoing rights, and any other
intellectual property rights, in and to inventions (whether patentable or unpatentable), invention disclosures, mask works, industrial design rights, discoveries, ideas, developments, data, Software, confidential or proprietary technical, business
and other information, including, but not limited to processes, techniques, methods, formulae, designs, algorithms, prospect lists, customer lists, projections, analyses, and market studies; (ix) all rights pertaining to any of the foregoing
arising under international treaties and convention rights; (x) the right and power to assert, defend and recover title to any of the foregoing; and (xi) all rights to assert, defend and recover for any past, present and future
infringement, misuse, misappropriation, impairment, unauthorized use or other violation of any of the foregoing; and (xii) all administrative rights arising from the foregoing, including the right to prosecute applications and oppose, interfere
with or challenge the applications of others, the rights to obtain renewals, continuations, divisions, and extensions of legal protection pertaining to any of the foregoing. 

(ii) “Company Intellectual Property” means all Intellectual Property that is owned in whole or in part,
by the Company. 
 (iii) “Company Manufacturing Tools” means machines, equipment and Software
developed by or for the Company and used in the Ordinary Course of Business in the manufacturing process in which the Company manufactures solar ingots and wafers. 

(iv) “Company Software” means all Software developed by or for the Company or that is owned by the
Company and that is material to the operation of the Company and (i) is distributed, sold, licensed, marketed or otherwise provided to third parties by the Company, (ii) is used or held for use by the Company in connection with its work
for customers or its products or services, and/or (iii) is one of Company Manufacturing Tools. 
 (v)
“Owned Software” means all Company Software that is owned by the Company. 
  

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 (vi) “Public Software” means any Software that is, or
is derived in any manner from, in whole or in part, any Software that is distributed as freeware, open source Software (e.g., Linux) or similar licensing or distribution models that (i) require the licensing or distribution of source code to
the public for free to licensees, (ii) prohibit or limit the receipt of consideration in connection with sublicensing or distributing the Software, or (iii) require the licensing of the Software to the public for free for the purpose of
making derivative works. For the avoidance of doubt, “Public Software” includes, without limitation, Software licensed or distributed under any of the following licenses or distribution models (or licenses or distribution models similar
thereto): (i) GNU’s General Public License (GPL) or Lesser/Library GPL (LGPL); (ii) the Artistic License (e.g., PERL); (iii) the Mozilla Public License; (iv) the Netscape Public License; (v) the Sun Community Source
License (SCSL); (vi) the Sun Industry Standards License (SISL); (vii) the BSD License; (viii) Red Hat Linux; (ix) the Apache License; and (x) any other license or distribution model described by the Open Source Initiative as
set forth on www.opensource.org. 
 (vii) “Software” means all computer software, firmware, and
programs in any form, including without limitation, source code, object code, development tools, library functions, compilers, Internet website code, and all versions, updates, corrections, enhancements, replacements, and modifications thereof.

 (b) Schedule 2.14(b)(i) contains a true, complete and accurate list of each of the following items of Company
Intellectual Property, except to the extent that the Company has elected to abandon or let lapse the respective Company Intellectual Property in its business judgment: Patents, registrations and applications for registration of trademarks, service
marks, trade names, corporate names,; registered copyrights and applications for copyright registration; and registrations of such copyrights; registered industrial designs, and issued domain names and applications for and registrations thereof,
(such items required to be listed, referred to herein as “Scheduled Company Intellectual Property”). Schedule 2.14(b)(i) accurately summarizes, where applicable, the following for each item of Scheduled Company Intellectual
Property: patent number, application number, registration number, filing date, date of issuance, applicant, mark or name, owner(s), country of origin, and, to the extent due within ninety (90) days of the date of execution of this Agreement,
the next maintenance fee and other administrative filing obligations required to maintain or prosecute such Intellectual Property. Schedule 2.14(b)(ii) contains a true, complete and accurate list of each material Software application
(indicating current version number) included in the Owned Software. 
  

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 (c) Schedule 2.14(c) contains a list of all agreements relating to Intellectual
Property or Software (including Company Software and any other Software used in the Ordinary Course of the Business) to which the Company is a party or is otherwise obligated, other than non-exclusive licenses for generally available commercial
Software or shrink wrap Software, purchase orders or purchase order acknowledgements and non-disclosure agreements, evaluation agreement and customer and distribution agreements, and employment and employee invention assignment agreements entered in
the Ordinary Course of Business, by which the Company (i)(A) licensed any Person under any Company Intellectual Property or sublicensed any Person under any Intellectual Property owned by another Person, (such agreement, a “Company
Intellectual Property License”); (B) is licensed under any Intellectual Property owned by another Person (such agreement, a “Third Party Intellectual Property License”); (C) assigned or is assigned any right or
interest in, settled any dispute, or released or was released from any claim pertaining to, any Intellectual Property; (D) is obligated with respect to the disclosure, development, enforcement, prosecution, maintenance, transfer, or licensing
of any Intellectual Property; or (E) granted or was the beneficiary of a covenant not to sue or other restrictive covenant or agreement with respect to Intellectual Property, or (ii) is legally obligated or committed, or has obtained a
legal obligation or commitment from any Person, to enter into an agreement pertaining to any of the categories set forth in subpart (i), (each such agreement described in this Section 2.14(c), a “Company Intellectual Property
Agreement”). 
 (d) Except as described in Schedule 2.14(d), the Company have good, valid and legal title to,
and are the sole and exclusive owner of all right, title and interest in and to, Company Intellectual Property, free and clear of all Liens (other than restrictions on Company Intellectual Property that are set forth in the terms and conditions of
Company Intellectual Property Licenses listed in Schedule 2.14(c)). The Company has the right to use and otherwise exploit, in the manner currently used or exploited, by the Company, Company Manufacturing Tools and Company Software that is
material to the operation of the business of the Company, and Parent and the Surviving Company shall continue to have such rights after the Closing. 

(e) Each item of issued Scheduled Company Intellectual Property is valid and enforceable, and there is no pending action or claim or
allegation asserting the invalidity or unenforceability of any item of Company Intellectual Property other than assertions by examiners in prosecution proceedings with the applicable issuing or granting authorities. In no instance has copyright
protection in the Company Intellectual Property in Company Software been dedicated to the public domain or become subject to an obligation to freely license all third parties or publicly disclose source code. 

(f) The Company Intellectual Property and Third Party Intellectual Property Licenses include all rights in Intellectual Property used or
exploited in or necessary for the operations or conduct of the business of the Company in the manner currently conducted. 
 (g)
No Company Intellectual Property or Owned Software is subject to any Order referring to Company or such Intellectual Property that restricts, impairs or otherwise imposes any obligation with respect to the validity, enforceability, disclosure, use,
enforcement, prosecution, maintenance, transfer, licensing or other exploitation of Company Intellectual Property or Owned Software. 

(h) The Company, the products and services offered by or on behalf of or through the Company (whether by sale, license or otherwise), the
processes or business methods used by or at the direction of the Company and the operation of the business of the Company, has not and have not infringed, misappropriated or otherwise violated, and does not infringe, misappropriate or otherwise
violate, any Intellectual Property of any Person. There has not been any unauthorized disclosure of any third party Intellectual Property by the Company, or by any employees or officers of the Company. 

 

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 (i) To the Company’s Knowledge, there is not and has not been any unauthorized use,
exploitation or disclosure, infringement, misappropriation or other violation of any Company Intellectual Property by any Person. 

(j) There has been no written or express claim made, or to the Company’s Knowledge, threatened, by or against the Company (and the
Company has not been a party to any Action including such a claim), and the Company has not received or provided notice of any such claim or other communication, in the last three (3) years: (i) asserting the invalidity (other than
assertions by examiners in prosecution proceedings with the applicable issuing or granting authorities), misuse or unenforceability, infringement, misappropriation or other violation of any third party Intellectual Property or Company Intellectual
Property; (ii) challenging the Company’s ownership of or rights to use, license or otherwise exploit any Intellectual Property; (iii) asserting that the Company has engaged in unfair competition, false advertising or other unfair
business practices; (iv) offering an ‘invitation to license’ as a means to avoid infringement or potential infringement of any Intellectual Property; or (v) otherwise asserting claims or allegations asserting the
misappropriation, violation or infringement of Intellectual Property, or that would, if established, affect Company Intellectual Property, Company Intellectual Property Agreements, or the ability of the Company to carry out the business of the
Company in the future without infringing, misappropriating or violating the Intellectual Property of any Person. There is no proceeding or action before any court or tribunal (including the United States Patent and Trademark Office or equivalent
authority anywhere in the world) referencing any Scheduled Company Intellectual Property other than prosecution proceedings entered into in the Ordinary Course of Business with the applicable issuing or granting authorities. 

(k) Except as set forth in Schedule 2.14(k), the Company has (i) paid all application, examination, registration, issue,
renewal and maintenance fees that have become due for Scheduled Company Intellectual Property, (ii) filed all necessary documents and certificates including statements of use with the relevant patent, copyright, trademark or other authorities
for Scheduled Company Intellectual Property, (iii) recorded documents of title and releases of security interests required to perfect rights in Scheduled Company Intellectual Property, and (iv) exercised commercially reasonable care,
including taking all commercially reasonable steps, to protect the Company’s rights in confidential information and trade secrets that the Company has elected to maintain confidential or as a trade secret in its business judgment and to protect
the confidential information and trade secrets of others who have provided such confidential information and trade secrets to the Company. 

(l) The Company’s current and former employees, officers and independent contractors and consultants who have created any
Intellectual Property used or held for use or exploitation by the Company (including without limitation any Intellectual Property incorporated in Company Software), have assigned ownership of such Intellectual Property to Company through a Company
Intellectual Property Agreement and entered into agreements with the Company preventing them from disclosing confidential information to any third party or making any improper use of confidential information. 

 

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 (m) None of the Company Intellectual Property was developed by or on behalf of, pursuant
to a Contract with, or using grants or any other subsidies of, any governmental or public entity or authority, university, corporate sponsor, or other third party, except as disclosed on Schedule 2.14(m). 

(n) The consummation of the transaction contemplated by this Agreement will not alter, impair or extinguish any of the Company
Intellectual Property or rights or obligations under any Company Intellectual Property Agreement. 
 (o) Except as set forth on
Schedule 2.14(o), none of the Company Software: (i) incorporates any Public Software, or is subject to any license or other contractual obligation similar to that imposed on Public Software that (A) requires the Company to divulge
to the public for free any source code or trade secret that is part of Company Software, (B) licenses the public the right to create any derivative work based on Company Software or any part thereof, or (C) licenses the public the right to
distribute or redistribute Company Software or any part thereof at no charge; or (ii) to the extent intentionally placed in the Software by the Company, contains any time bomb, virus, worm, Trojan horse, back door, drop dead device, or any
other Software that would interfere with its normal operation, would allow circumvention of security controls, or is intended to cause damage to hardware, Software or data. 

(p) The Company own or have the right to exploit, and after Closing will continue to own or have the right to exploit, each item of
Company Software in the same manner and to the same extent as it was used prior to the Closing, and, with regard to Company Manufacturing Tools, exploit in any manner, subject only to the terms of any Third Party Intellectual Property License listed
in Schedule 2.14(c), including, without limitation, the uninterrupted right to continue to distribute after the Closing all Software embedded in or otherwise distributed with or distributed for use in connection with products and services
distributed in the Ordinary Course of Business. Company Software constitutes all Software necessary to conduct the business and operations of the Company as currently conducted. 

(q) All Company Manufacturing Tools and Company Software (i) is in the possession, custody and control of the Company, along with
all hardware and software tools, documentation, and other materials necessary to exploit Company Manufacturing Tools and Company Software in the Ordinary Course of Business, and such Company Manufacturing Tools and Company Software and related tools
and materials will remain so immediately after the Closing, (ii) has been catalogued and documented as reasonably necessary to enable competently skilled programmers and engineers to use, update and enhance such items by readily using the
existing source code, engineering drawings, machine settings and documentation, and (iii) is stored in electronic form, with up-to-date appropriately catalogued versions, in at least two separate geographical locations for effective disaster
recovery. No Company Software in source code form has been provided to employees or consultants of the Company except on a need-to-know basis. The Owned Software has not been presented or disclosed in source code form to any third party (including
without limitation, employees and officers of the Company) except under written confidentiality agreements or written source code escrow agreements listed in Schedule 2.14(c). There has been no security breach relating to, no violation of any
security policy regarding, and no unauthorized access to, the Company’s proprietary data or Company Software. 
  

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 (r) Except as set forth in Schedule 2.14(r), the Company is not obligated to any
third party to support or maintain any of Company Software under any Contract except pursuant to agreements that will terminate by their terms or are terminable at will by the Company (and other than for cause) on a periodic basis and that provide
for periodic payments to the Company for such services. 
 (s) Except as set forth in Schedule 2.14(s), Company Software
is free of material defects and errors, and functions in substantial conformity with documentation therefor. 
 (t) The Company
has not undertaken any commitment to commit any Company Intellectual Property to the public domain, to the free and unrestricted use of any trade group or association, or to be licensed freely on any predetermined terms, including, without
limitation, any commitment or obligation arising from participation by the Company in any standards-setting activities or any standards-setting organizations. 

(u) Except as set forth on Schedule 2.14(u), the Company does not provide to any third parties, or contract with any third parties
to provide to third parties, any computer services bureau or other computer processing services. 
 (v) The Company maintains
policies and procedures regarding data security and privacy that are commercially reasonable and, in any event, in compliance with all their obligations under applicable Law. The Company has operational business continuity plans addressing the
possibility of future significant business disruptions, including but not limited to procedures to follow in the event of the loss of key personnel, equipment and facilities. There has been no security breach relating to, violation of any security
policy regarding, or unauthorized access or unauthorized use of, any data in the possession, custody or control of the Company that contains the personally identifiable information of natural persons. The use and dissemination of any and all data
and information concerning individuals by the Company is in compliance with all applicable privacy policies, terms of use, customer agreements and Law. The transactions contemplated to be consummated hereunder as of the Closing will not violate any
privacy policy, terms of use, customer agreements or Law relating to the use, dissemination, or transfer of any such data or information. 

(w) The Company has taken commercially reasonable steps to establish and protect its ownership of Company Intellectual Property,
including, without limitation, taking reasonable steps to protect the confidential status of all trade secret or confidential information that the Company has elected to maintain confidential or as a trade secret in its business judgment, including
having a policy, which the Company believes it is in compliance in all material respects with, of entering into written agreements with (or, with regard to employees, establishing binding policies) all Persons who receive any confidential or trade
secret information restricting the disclosure of such information or material to any third party and preventing the improper or unauthorized use of such information or material. 

 

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 2.15 Litigation. Except as set forth on Schedule 2.15, (a) there is
no, and there has not been since January 1, 2008 any, suit, claim, litigation, proceeding (administrative, judicial, or in arbitration, mediation or alternative dispute resolution), Government or grand jury investigation, or other action
excluding any routine audit or examination (any of the foregoing, “Action”) pending or, to the Company’s Knowledge, threatened against the Company or involving its business, any of the Property or Company Intellectual Property,
or any of the directors or officers of the Company (in their capacities as such), including without limitation any Action challenging, enjoining, or preventing this Agreement or the consummation of the transactions contemplated hereby; (b) the
Company is not, and has not been since January 1, 2008, subject to any judgment, order, writ, injunction, or decree of any court or other Government entity (“Order”) other than Orders of general applicability and (c) the
Company has not been, and to Company’s Knowledge, has not been threatened to be, a party or subject to any Action or Order relating to personal injury, death, or property or economic damage arising from products or services of the Company.

 2.16 Insurance. 

(a) Set forth on Schedule 2.16 is a list of all insurance policies and bonds currently in force covering or relating to the
properties, operations or personnel of the Company (other than pursuant to the Plans disclosed on Schedule 2.24) and, with respect to insurance policies covering product liability and similar occurrence based risks, in force at any time since
January 1, 2008, and a detailed list of all claims filed by the Company with any insurance carrier since January 1, 2008. Such schedule clearly indicates (i) which of such policies are claims made and which of such policies are
occurrence based, (ii) the deductibles of each such policy and the amount which have been applied to such deductibles in the current policy period and (iii) the aggregate amount available under each such policy. All of such insurance
policies are in full force and effect (with respect to the applicable coverage periods), and the Company is not in default with respect to any of its obligations under any of such insurance policies. 

(b) The Company has at all times maintained insurance as required by Law or under any Contract to which the Company is or has been a
party, including, without limitation, comprehensive general liability, products liability and unemployment and workers’ compensation coverage. Such insurance insures the Property against all ordinary, insurable risks to the full replacement
cost thereof. 
 2.17 Absence of Certain Changes. Since December 31, 2009, except as set forth on
Schedule 2.17 hereto, there has not been: 
 (a) Any adverse change in the business, condition (financial or otherwise),
or operations of the Company, or the condition of the Property, in any such case, which is material on an individual basis or an aggregate basis with all such adverse changes, and no such change or changes will arise with respect to the Company as a
result of the consummation of the transactions contemplated hereby; 
 (b) Any declaration, setting aside, or payment of any
dividend or any distribution (in cash or in kind) to any Person with respect to any securities of the Company, or any direct or indirect redemption, purchase, or other acquisition by the Company of any of their securities; 

 

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 (c) Any material increase in compensation or other remuneration payable to or for the
benefit of or committed to be paid to or for the benefit of any director, officer, agent or employee of the Company, or in any benefits granted under any Plan with or for the benefit of any such director, officer, agent or employee (other than
increases in wages or salaries required under existing Contracts listed on Schedule 2.12(a) or otherwise not unusual in timing, character or amount made in the Ordinary Course of Business to employees); 

(d) Any material transaction entered into or carried out by the Company other than in the Ordinary Course of Business; 

(e) Any borrowing or incurrence of any other Indebtedness (other than the creation of accounts payable in the Ordinary Course of
Business), contingent or otherwise, by or on behalf of the Company (it being understood that the foregoing is not intended to describe obligations of the Company under Contracts to sell products to others); 

(f) Any material modification or termination of any Contract disclosed on Schedule 2.12(a) or Schedule 2.14(c) or any term
thereof or any material modification or termination of any Government license, permit or other authorization issued to the Company; 

(g) Any purchase by the Company of capital assets or any interests in real property or any lease arrangement (whether as a lessor or
lessee or sublessor or sublessee) entered into by the Company with respect to real property in excess of $50,000; 
 (h) Any
abandonment or lapse of Intellectual Property that was or is owned by the Company, or any grant of a license, release or covenant not-to-sue with respect to any Company Intellectual Property other than non-exclusive licenses granted in the Ordinary
Course of Business; 
 (i) Any acquisition of or investment in (by merger, exchange, consolidation, purchase or otherwise) any
corporation or partnership or interest in any business organization or entity; 
 (j) Any acquisition of any assets (other than
interests in real property disclosed pursuant to subsection (f) above), whether through capital spending or otherwise, for an amount in excess of $15,000 on an individual basis or for an amount in excess of $50,000 on an aggregate basis;

 (k) Any written or, to the Company’s Knowledge, oral waiver by the Company of any claims or rights that involve amounts
individually or in the aggregate in excess of $15,000; 
 (l) Any disclosure by the Company to any Person of its information
that was not already generally available to the public at the time of such disclosure other than (i) to Parent and Parent’s representatives, agents, attorneys and accountants or the respective employees of the Company (ii) in the
Ordinary Course of Business pursuant to a nondisclosure agreement (iii) or with respect to a prospective investor pursuant to a nondisclosure agreement; 
  

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 (m) Any charitable contribution or commitment by the Company in an amount in excess of
$15,000, or any such contributions or commitments in an amount in excess of $50,000 on an aggregate basis; 
 (n) Any change in
any material respect in the conduct of the Company’s business, or any change in any material respect in their respective methods of purchase, sale, lease, management, marketing, promotion or operation, or any delay, postponement or acceleration
by the Company of the payment of accounts payable or other liabilities by the Company, or any acceleration, delay or postponement in the collection of notes or accounts receivable of the Company in advance of or beyond the dates when the same would
have been collected in the Ordinary Course of Business consistent with past practice, or any acceleration, delay or postponement in the shipment of any products of the Company in advance of or beyond the dates when the same would have been shipped
in the Ordinary Course of Business; 
 (o) Any change in any method of accounting or accounting policies of the Company, other
than those required by GAAP, or any write-down in the accounts receivable or inventories of the Company; 
 (p) Any action taken
by the Company or by another person on behalf of the Company that may reasonably be expected to cause or constitute a breach of any provision of this Agreement; 

(q) Any change in Tax elections; 

(r) Any amendment of any Tax Return relating to the Company; 

(s) Any settlement of compromise with respect to any Tax controversy, Tax claim, audit or assessment or any right to claim a Tax refund,
offset or other reduction in Tax liability of the Company; 
 (t) Any closing agreement with respect to any Tax; 

(u) Any consent to any extension or waiver of the limitations period applicable to any Tax claim or assessment; 

(v) Any grant of a Lien with respect to the material assets of the Company; or 

(w) Any binding commitment or agreement by the Company to do any of the foregoing items (b) through (v). 

 

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 2.18
No Breach of Law or Governing Document; Licenses and Permits. 
 (a) The
Company is not, and since January 1, 2008, has not been, in default in any material respect under or in breach or violation in any material respect of any applicable statute, law, treaty, convention, ordinance, decree, order, judgment,
injunction, rule, directive, or regulation of any Government (“Law”) or the provisions of any Government permit, franchise, or license, or any provision of the Company Organizational Documents. The Company has not received any
written or express notice alleging such default, breach or violation. 
 (b) Schedule 2.18(b) contains a complete and
accurate list of each material authorization, license, certificate, registration, consent, approval, variance, and permit (collectively, “Permits”) issued, granted, given, or otherwise made available by or under the authority of any
Government body or pursuant to any Law that is held by the Company or that otherwise relates to the business of, or to any of the assets owned or used by, the Company (each, a “Governmental Authorization”) and currently necessary to
permit the Company to lawfully conduct and operate its business in the manner in which it currently conducts and operates its business and to permit the Company to own and use its assets in the manner in which they currently own and use such assets.
Each Governmental Authorization listed or required to be listed in Schedule 2.18(b) is valid and in full force and effect. Except as set forth in Schedule 2.18(b): 

(i) the Company is, and at all times since January 1, 2008 has been, in full compliance with all of the terms in all
material respects and requirements of each Governmental Authorization identified or required to be identified in Schedule 2.18(b); 

(ii) no event has occurred since January 1, 2008, or circumstance exists that may (with or without notice or lapse of
time) (A) constitute or result directly or indirectly in a violation of or a failure to comply with any term or requirement in all material respects of any Governmental Authorization listed or required to be listed in Schedule 2.18(b),
or (B) result directly or indirectly in the revocation, withdrawal, suspension, cancellation, or termination of, or any modification to, any Governmental Authorization listed or required to be listed in Schedule 2.18(b); 

(iii) the Company has not received, at any time since January 1, 2008, any written or express notice from any
Government entity or any other Person regarding (A) any actual, alleged, possible, or potential violation of or failure to comply with any term or requirement of any Governmental Authorization, or (B) any actual, proposed, possible, or
potential revocation, withdrawal, suspension, cancellation, termination of, or modification to any Governmental Authorization; and 

(iv) all applications required to have been filed for the renewal of the Governmental Authorizations listed or required to
be listed in Schedule 2.18(b) have been duly filed on a timely basis with the appropriate Government entities, and all other filings required to have been made with respect to such Governmental Authorizations have been duly made on a timely
basis with the appropriate Government entities. 
  

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 (c) The Governmental Authorizations listed in Schedule 2.18(b) collectively
constitute all of the material Governmental Authorizations necessary to permit the Company to lawfully conduct and operate its business in the manner in which it currently conducts and operates its business and to permit the Company to own and use
its assets in the manner in which they currently own and use such assets. Neither the execution of this Agreement nor the Closing do or will constitute or result in a default under or violation of any such Governmental Authorization. 

2.19 Transactions with Related Persons; Outside Interests. 

(a) No director, officer or employee of the Company or, to the Company’s Knowledge, Securityholder or any individual related by
blood, marriage or adoption to any such individual or any entity in which any such individual or entity owns any beneficial interest (collectively, the “Company Entities”), is a party to any agreement, Contract, commitment or other
form of transaction or arrangement with the Company, written or oral, or has any interest in any of the Property, except as specifically disclosed on Schedule 2.19. 

(b) To the Company’s Knowledge, no director, officer or employee of the Company has any direct or indirect financial interest in any
competitor with or supplier, sales representative, distributor or customer of the Company; provided, however, that for this purpose ownership of corporate securities having no more than 2% of the outstanding voting power of any competitor, supplier
or customer, which securities are listed on any national securities exchange or authorized for quotation on the Nasdaq National Market, shall not be deemed to be such a financial interest, provided that such person has no other connection or
relationship with such competitor, supplier or customer. 
 2.20 Bank Accounts. Set forth on
Schedule 2.20 is a list of the locations and numbers of all bank accounts, investment accounts and safe deposit boxes maintained by the Company, together with the names of all persons who are authorized signatories or have access thereto
or control thereunder. 
 2.21 Environmental Matters. 

(a) Except as set forth on Schedule 2.21, the Company (i) is and has been since January 1, 2008, in compliance with
Environmental Laws (hereinafter defined) in all material respects; and (ii) has conducted all Hazardous Materials Activities (as hereinafter defined) in compliance with Environmental Laws in all material respects. For purposes of this
Section 2.21, (x) “Hazardous Materials Activities” means the storage, handling, transportation and disposal of Hazardous Materials and (y) “Environmental Laws” means any applicable Law relating
to the protection of health (with respect to the exposure to Hazardous Materials), occupational safety or the environment, including without limitation: the Clean Air Act, the Federal Water Pollution Control Act, the Resource Conservation and
Recovery Act, the Federal Solid Waste Disposal Act, the Comprehensive Environmental Response, Compensation and Liability Act, the Toxic Substance Control Act, the Registration, Evaluation, Authorization and Restriction of Chemical Substances
regulations, the Occupational Safety and Health Act of 1970, and any comparable state, local or foreign law, and the common law. Except as set forth on Schedule 2.21, the Company is not in violation of any Environmental Law in any material
respect, and there are no past violations of any Environmental Laws by the Company that have not been corrected or resolved. 
  

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 (b) Except as set forth on Schedule 2.21, the Company has properly obtained and
is in compliance in all material respects with all Permits issued pursuant to Environmental Laws (“Environmental Permits”) necessary or required for the conduct of the business of the Company as currently conducted, and the Company
has properly made all material filings with and submissions to any Government with respect to such Environmental Permits as required by any Environmental Law. The Company has not received any written or express notice from any Government alleging
violations of Environmental Permits that remain unresolved or outstanding. 
 (c) Except as set forth on Schedule 2.21,
the Company has not spilled, discharged, emitted, injected, disposed, dumped or released in violation of or requiring cleanup under Environmental Law (“Release”) on, beneath, above, or into the Leased Real Property or into the
environment surrounding the Leased Real Property any substances, chemicals, materials or wastes that have been defined or listed by any Government pursuant to Environmental Law to be (i) “pollutants”, “contaminants”,
“hazardous”, “toxic”, “infectious”, or “radioactive” (including without limitation petroleum, including crude oil or any derivative or fraction thereof, friable asbestos fibers, silica, polychlorinated
biphenyls or lead based paint) collectively, “Hazardous Materials”. The Company does not sell and has not sold any product or material containing asbestos or that utilizes or incorporates asbestos-containing materials in any way,
and to the Company’s Knowledge, is not aware of the presence of mold in the Leased Premises. 
 (d) Set forth on
Schedule 2.21 is a list of all locations where the Company has conducted Hazardous Material Activity. The Company does not and has not operated any underground storage tanks on or beneath the Leased Real Property or any other property
identified on Schedule 2.21. 
 (e) The Company has made available to Parent copies of any and all (i) documents in
the possession or control of the Company, or that the Company has a right to obtain, which were received by the Company from, or submitted by the Company to, the United States Environmental Protection Agency and/or any foreign, state, county or
municipal environmental, natural resource, or environmental health agency concerning the presence of Hazardous Materials in the soil, groundwater, or building materials of the Leased Real Property or any other property identified on Schedule
2.21, or concerning the Company’s non-compliance with Environmental Laws; (ii) any claim by a governmental authority concerning the presence of Hazardous Materials in the soil, groundwater, or building materials on the Leased Real
Property; and (iii) Phase I or Phase II environmental site assessments, environmental or health and safety compliance audits, or soil or groundwater analyses in the Company’s possession or control or that the Company has a right to obtain
including, without limitation, material documents regarding any Release of Hazardous Materials to the Leased Real Property. 
  

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 (f) Except as set forth on Schedule 2.21, there is no pending or, to the
Company’s Knowledge, threatened Environmental Claim (as hereinafter defined) against the Company in connection with the Leased Real Property or any other real property. For purposes of this Section 2.21, “Environmental
Claim” means any civil, criminal or administrative action, suit, summons, citation, complaint, claim, notice, demand, information request, judgment, order, lien, proceeding, or Government hearing based on or arising under any Environmental
Permits or an Environmental Law. 
 (g) Except as set forth on Schedule 2.21, the Company has never received from any
Person any written notice that the Company has any environmental liability, or is liable for any unpaid expense for the removal, remediation, monitoring or investigation of Hazardous Materials. 

(h) Except as set forth on Schedule 2.21, the Company is not liable for any Hazardous Material contamination at any site to which
its Hazardous Material waste has been sent for disposal, treatment, recycling or storage. 
 2.22
Officers, Directors, Employees, Consultants and Agents; Compensation. 
 (a) Set forth on
Schedule 2.22(a) is a complete list of: (i) all current directors of the Company, (ii) all current officers (with office held) of the Company, (iii) all employees (active or other) of the Company employed in the United
States, (iv) all current employees (active or other) of the Company employed outside of the United States (listed separately by country), (v) all current paid consultants, sales representatives, commercial agents or other freelancers
engaged by the Company, and (vi) all retirees and terminated employees of the Company and for which the Company has any current benefits responsibility or other continuing or contingent obligation; together, in each case, with the current rate
of compensation (if any) payable to each and any accrued vacation time for such person, any incentive or bonus payments owing to such persons but not yet paid and the date of employment, retirement or termination of each such person. 

(b) Except as set forth on Schedule 2.22(b): (i) the Company is not indebted to any of its officers, directors,
employees or consultants except for amounts due in the Ordinary Course of Business as normal salaries, wages, employee benefits and bonuses and in reimbursement of ordinary expenses in the Ordinary Course of Business; and (ii) no officer,
director, employee, consultant, commercial agent or other freelancer of the Company is indebted to the Company except for advances for ordinary business expenses in the Ordinary Course of Business. 

(c) All payments to agents, consultants and others made by the Company or by any Securityholder in connection with the business of the
Company have been in payment of bona fide fees and commissions and not as bribes, kickbacks or as otherwise illegal or improper payments. All such payments have been made directly to the parties providing the goods or services for which such
payments were made, and no such payment has been paid in a manner intended to avoid currency controls or any party’s Tax reporting or Tax payment obligations. The Company has properly, fairly and accurately reflected on its books and records:
(i) all compensation paid to and perquisites provided to or on behalf of its agents and employees; and (ii) all compensation and perquisites that are due and payable or deferred and payable to such persons, but which have not been paid or
provided at the Closing Date. Such compensation and perquisites have been properly and accurately disclosed in the respective Financial Statements and other public or private reports, records or filings of the Company, to the extent required by Law.

  

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 (d) Except as set forth on Schedule 2.22(d), no offer of employment or engagement
has been made by the Company that has not yet been accepted, or which has been accepted but where the employment or engagement has not yet started. 

(e) Except as set forth on Schedule 2.22(e), no employees of the Company (i) are on secondment, maternity, paternity,
adoption or other extended leave of absence or (ii) have ever been considered leased employees (as defined in section 414(n) of the Code) of the Company. 

(f) Except as set forth on Schedule 2.22(f), all Contracts between the Company and its employees are terminable at any time on one
month’s notice or less without compensation other than wages earned through the date of termination, pay in lieu of accrued and untaken vacation or paid time off, earned commission and pension or as required by Law. 

(g) None of the individuals listed on Schedule 2.22(g) has notified the directors or officers of the Company that he or she has a
present intent to resign or retire as a result of the transactions contemplated by this Agreement or otherwise within one year after the Closing Date. 

(h) Every employee of the Company who requires authorization from a Government to work in such employee’s place of work as at
Closing has the necessary immigration documentation or other necessary permission. 
 (i) Every employee of the Company has an
effective confidentiality/non-disclosure agreement with the Company, and the Company has a copy of all such agreements in its files. 

2.23 Labor Matters. Set forth on Schedule 2.23 is each collective bargaining, works council, union representation or
similar agreement or arrangement to which the Company is a party. Except as set forth on Schedule 2.23: 
 (a) The
Company is not engaging in or has engaged in any unfair labor practice since January 1, 2008; 
 (b) There is no, and since
January 1, 2008 has not been, any labor strike, dispute, slowdown, or stoppage pending or, to the Company’s knowledge, threatened against the Company; 

(c) No labor organization, as defined in the National Labor Relations Act of 1947, as amended (the “NLRA”), currently
claims, or previously has claimed, any right of representation concerning the respective employees of the Company; 
  

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 (d) No collective bargaining agreement, contract or legally binding commitment to any
trade union, employee group or labor organization (as defined in the NLRA) exists or is currently being negotiated and to the Company’s Knowledge, no organizing effort is currently being, or has previously been, made with respect to the
employees of the Company; 
 (e) Neither the Company nor any of its respective agents, representatives or employees has
committed any unfair labor practice, as defined in the NLRA. There is not now pending or, to the Company’s Knowledge, threatened, any charge or complaint against the Company by the National Labor Relations Board, any state, local or non-U.S.
labor or employment agency or any representative thereof, and the execution or consummation of this Agreement will not result in any such charge or complaint; and 

(f) There are no grievance or arbitration proceedings arising out of or under any collective bargaining agreement which is pending or, to
the Company’s Knowledge, threatened, against the Company. 
 2.24 Employee Benefit Matters. 

(a) Except as set forth on Schedule 2.24, the Company has no outstanding and is not a party to or subject to liability under:
(i) any agreement, arrangement, plan, or policy, qualified or non-qualified, whether or not written and whether or not considered legally binding, that involves (A) any pension, retirement, profit sharing, deferred compensation, bonus,
stock option, stock purchase, phantom stock, health, welfare, or incentive plan; or (B) welfare or “fringe” benefits, including without limitation vacation, severance, disability, medical, hospitalization, dental, life and other
insurance, tuition, company car, club dues, sick leave, maternity, paternity or family leave, health care reimbursement, dependent care assistance, cafeteria plan, regular in-kind gifts or other employee benefits; or (ii) any employment,
consulting, engagement, or retainer agreement or golden parachute arrangement or arrangement, and with respect to (i) and (ii) established or maintained for the benefit of current or former employees, officers, consultants or directors of
the Company ((i) and (ii) together the “Plans” and each item thereunder a “Plan”). Schedule 2.24 lists separately all Plans that are employee benefit plans within the meaning of Section 3(3) of the
Employee Retirement Income Security Act of 1974, as amended (“ERISA”) sponsored or maintained by the Company or to which the Company is required to contribute (collectively, the “ERISA Plans”). For any Plans of the
Company so disclosed on Schedule 2.24, such disclosure lists any U.S. Plans and any non-U.S. Plans separately. True, correct, and complete copies of all documents creating or evidencing any Plan listed on Schedule 2.24 have been
delivered or made available by the Company to Parent. To the extent applicable with respect to each Plan, true, correct, and complete copies of the current summary plan descriptions, including any summaries of material modifications, have been
delivered or made available by the Company to Parent. 
  

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 (b) Each Plan covering individuals who are employed by the Company complies in all
material respects with, has been established, registered, qualified, invested, administered, operated and maintained in compliance in all material respects with its terms and in compliance in all material respects with, and neither the Company has
any direct or indirect liability for non-compliance under, ERISA or any other Law applicable to any Plan. To the extent applicable with respect to each Plan, true, correct and complete copies of the most recent Forms 5500, including without
limitation, all schedules thereto, all financial statements with attached opinions of independent accounts and all actuarial reports, have been delivered or made available by the Company to Parent. Each Plan that is intended to qualify under
Section 401(a) or Section 501(c)(9) of the Code has received a favorable determination or opinion letter from the Internal Revenue Service (a copy of which has been provided to Parent) and related trusts have been determined to be exempt
from taxation. Nothing has occurred that would cause, and no Action is pending or, to the Company’s knowledge, threatened, which could result in the loss of such exemption or qualification. There are no outstanding defaults or violations by any
sponsor or fiduciary of any Plan or ERISA Plan and no Taxes, penalties or fees are owing, other than Taxes and fees not yet payable. There have been no improper withdrawals or transfers of assets from any Plan or ERISA Plan or the trust or other
funding media relating thereto and none of the Shareholders, the Company is or has been in breach of any fiduciary obligation with respect to the administration of any Plan or ERISA Plan or the trust or other funding media relating thereto.

 (c) The Company (i) has not made or has no or has had no obligation to make any contributions to any multi-employer plan
(as defined in Section 3(37) of ERISA) or to any pension plan subject to the minimum funding standards of ERISA or Title IV of ERISA, (ii) has not been a member of a controlled group which contributed to or has had an obligation to
contribute to any such plans and (iii) has not been under common control with an employer which contributed to or has had an obligation to contribute to any such plans. 

(d) Within the six-year period ending on the Closing Date, the Company has not terminated or taken action to terminate, in part or in
whole, any employee benefit plan, as defined in ERISA Section 3(3). 
 (e) With respect to each Plan, no prohibited
transactions (as defined in ERISA Section 406 or Code Section 4975) and no violations of ERISA Section 407 for which an applicable statutory or administrative exemption does not exist have occurred. 

(f) Each and every Plan which is a group health plan (as such term is defined in Code Section 5001(b)) in all material respects
complies and in each and every case has been operated in compliance with the requirements of the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), the Health Insurance Portability and Accountability Act
of 1996, as amended (“HIPAA”) and any applicable state and local laws; and to the extent applicable, each such Plan is in compliance with Section 1862(b)(4)(A)(i) of the Social Security Act, and the Company has not had any
liability for any excise tax imposed by Code Section 5000. True, correct and complete copies of the most recent notification to the employees of the Company of their COBRA rights and form of letter(s) distributed upon the occurrence of a
qualifying event have been delivered or made available by the Company to Parent. 
  

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 (g) Except as set forth on Schedule 2.24, the Company has no liability or
obligation to provide life, medical or other welfare benefits to former or retired employees, other than as required by COBRA. 

(h) With respect to any Plan which is a welfare plan as defined in Section 3(1) of ERISA, no such plan is funded through a
“welfare benefits fund” (as such term is defined in Section 419(e) of the Code). 
 (i) Except as set forth on
Schedule 2.24, all contributions with respect to the Plans for all periods ending prior to the Closing Date (including periods from the first day of the current plan year to the Closing Date) will be made prior to the Closing Date by the
Company and all members of the controlled group in accordance with past practice and, if applicable, any recommended contribution in the applicable actuarial report. All contributions to the Plans have been made on a timely basis in accordance with
ERISA and the Code. 
 (j) All insurance premiums (including premiums to the Pension Benefit Guaranty Corporation (the
“PBGC”) have been paid in full, subject only to normal retrospective adjustments in the ordinary course, to the extent applicable to the Plans for policy years or other applicable policy periods ending on or before the Closing Date.

 (k) There is no pending or, to the Company’s Knowledge, threatened legal action, proceeding or investigation, suit,
grievance, arbitration or other manner of litigation, or claim against or involving any Plan described in Schedule 2.24 hereof (other than claims for benefits in the normal course). The Company nor any of its directors, officers, employees or
plan fiduciary has no liability for failure to comply with ERISA, HIPAA, COBRA or the Code for any action or failure to act in connection with the administration or investment of any Plan. 

(l) All expenses and liabilities relating to all of the Plans described on Schedule 2.24 have been, and will be on the Closing
Date, fully and properly accrued on the books and records of the Company and the Financial Statements reflect all of such liabilities in a manner satisfying the requirements of Financial Accounting Standards 87 and 88. To the extent applicable, the
statements of assets and liabilities of the Plans as of the end of the most recent three fiscal years for which information is available, and the statements of change in fund balances, financial position and net assets available for benefits under
the Plans for such fiscal years, copies of which have been certified by the Company and furnished to Parent, fairly represent the financial condition of such Plans as of such date and the results of operations thereof for the year ended on such
date, all in accordance with GAAP applied on a consistent basis, and the actuarial assumptions used for funding purposes have not been changed since the last written report of actuaries on such Plans, which written reports have been furnished to
Parent. 
 (m) Each Plan (including any Plan covering former employees and/or retirees of the Company) may be unilaterally
amended, varied, modified or terminated in whole or in part by the Company on or at any time after the Closing Date. 
  

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 (n) The Company maintains no Plan or other benefit arrangement covering any employee or
former employee outside of the United States nor has ever been obligated to contribute to any such Plan. 
 (o) Each plan,
agreement or arrangement which provides for the deferral of compensation subject to Code Section 409A is, and has been since January 1, 2009, properly documented in writing in accordance with the Treasury Regulations promulgated thereunder
and has, since January 1, 2008, been operated in compliance with such provisions in effect from time to time since such date. No employee or former employee of the Company is subject to any tax or penalty under Code Section 409A due
to a documentary or operational failure thereunder. 
 (p) The consummation of the transaction contemplated by this Agreement,
other than by reason of actions taken by Parent following the Closing, will not (i) entitle any current or former employee of the Company to severance pay, unemployment compensation or any other payment, (ii) accelerate the time of payment
or vesting, or increase the amount of any compensation due to any current or former employee of the Company, or (iii) give rise to the payment of any amount that would not be deductible pursuant to Code Section 280G. 

2.25 Overtime, Back Wages, Vacation and Minimum Wage. No present or former employee of the Company has
given written or express notice to the Company of any claim against the Company (whether under Law, any employment agreement or otherwise) on account of or for (a) overtime pay, other than overtime pay for the current payroll period,
(b) wages or salary (excluding current bonus, accruals and amounts accruing under “employee benefit plans,” as defined in Section 3(3) of ERISA) for any period other than the current payroll period, (c) vacation, time
off or pay in lieu of vacation or time off, other than that earned in respect of the current fiscal year or (d) any violation of any Law relating to minimum wages or maximum hours of work. 

2.26 Discrimination and Occupational Safety and Health. No person or party (including, but not limited to, Government agencies of
any kind) has filed or given written or express notice to the Company of any claim, or any action or proceeding, against the Company arising out of any Law relating to discrimination in employment, employment practices (including wrongful
termination), family leave, or occupational safety and health standards, and to the Company’s Knowledge, no person has any valid basis for any such claim, action or proceeding. Since January 1, 2008, the Company has not received any
written or express notice from any Government entity alleging a violation of occupational safety or health standards. Except as set forth on Schedule 2.26, there are no pending workers compensation claims involving the Company and, since
January 1, 2008, there have not been any workers compensation claims against the Company relating to the use or existence of asbestos in any of the products, the manufacturing process or workplace setting of the Company. 

 

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 2.27 Customers and Suppliers. Schedule 2.27 sets forth a true, complete
and correct list of the 10 largest customers of the Company and the 20 largest suppliers of the Company, by volume of sales and purchases, respectively (by dollar volume) for each of the years ended December 31, 2008 and 2009. Except as
disclosed on Schedule 2.27, the Company has not 
 received any written or express notice from any supplier of the Company listed on
Schedule 2.27 to the effect that, and has no reason to believe that, any such supplier will stop or materially decrease the rate of supplying materials, products or services to the Company. Except as disclosed on Schedule 2.27,
the Company has not received any written or express notice from any customer listed on Schedule 2.27 to the effect, and has no reason to believe, that such customer will stop or materially decrease the rate of buying materials, services
or products from the Company. Schedule 2.27 lists all significant goods or services necessary for the conduct of the business of the Company with respect to which alternative sources of supply are not readily available on comparable
terms and conditions (including all significant goods and services for which there is only one reasonably available source). 

2.28 Product Liability Claims. Except as described on Schedule 2.28, the Company has never received notice or
information as to any claim or allegation of, and the Company has not been a party or subject to any Action or Order relating to, bodily or personal injury, death, or property or economic damages, any claim for punitive, exemplary or consequential
damages, any claim for contribution or indemnification, or any claim for injunctive relief in connection with any product manufactured, sold or distributed by, or in connection with any service provided by, or based on any error or omission or
negligent act in the performance of services by, the Company or its employees. Schedule 2.28 accurately and completely describes all such claims, together in each case with the date such claim was made, the amount claimed, the
disposition or status of such claim (including settlement or judgment amount), and the amount of attorney’s fees incurred in connection with such claim. The aggregate loss and expense (including out-of-pocket expenses) attributable to all
product liability and similar claims now pending or hereafter asserted against the Company and with respect to all products or services manufactured or provided by the Company on or prior to the Effective Time will not exceed the amount of the
aggregate product and professional services liability reserves set forth on the Closing Balance Sheet as current liabilities. 

2.29 Product and Service Warranties. Set forth on Schedule 2.29 are the standard forms of product and service
warranties and guarantees used by the Company and copies of all other outstanding product and service warranties and guarantees, or the Contracts in which such forms of warranties and guarantees are provided. Except as set forth on Schedule
2.29, no product or service warranties or guarantees have been made by the Company. Except as specifically described on Schedule 2.29, no product or service warranty or indemnity claim or similar claims have been made against the Company.
No person or party (including, but not limited to, Government agencies of any kind) has any valid claim, or valid basis for any action or proceeding, against the Company under any Law relating to unfair competition, false advertising or other
similar claims arising out of product or service warranties, guarantees, specifications, manuals or brochures or other advertising materials and no such claim, action or proceeding is currently pending or, to the Company’s Knowledge, threatened
against the Company. The aggregate loss and expense (including out-of-pocket expenses) attributable to all product and service warranties and guarantees and similar claims now pending or asserted against the Company hereafter with respect to
products manufactured or services rendered on or prior to the Effective Time will not exceed the amount of the reserve therefor set forth on the Closing Balance Sheet as current liabilities. 

 

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 2.30 Product Safety Authorities. No person affiliated with or on behalf of the
Company has been required to file any notification or other report with or provide information to any Government or product safety standards group concerning actual or potential defects or hazards with respect to any product manufactured, sold,
distributed or put in commerce by the Company or in connection with their respective businesses, and there exist no grounds for the recall of any such product. 

2.31 Foreign Operations and Export Control. During the last five years, the Company has acted, in all material respects:

 (a) pursuant to valid qualifications to do business in all jurisdictions outside the United States where such qualification
is required by local Law and the nature of the Company’s activities in such jurisdictions; 
 (b) in compliance with all
applicable foreign Laws, including without limitation Laws relating to foreign investment, foreign exchange control, immigration, employment and taxation; 

(c) without violation of and in compliance with all relevant anti-boycott laws, regulations and guidelines, including without limitation
Section 999 of the Code and the regulations and guidelines issued pursuant thereto and the Export Administration Regulations administered by the U.S. Department of Commerce, as amended from time to time, including all reporting requirements and
is not a party to any agreement requiring it to participate in or cooperate with the Arab boycott of Israel, including any agreement to provide boycott-related information or to refuse to do any business with any person or entity for boycott-related
reasons; 
 (d) without violation of and in compliance with any applicable export or reexport control or sanctions laws, orders
or regulations of any and all applicable jurisdictions, including without limitation the United States and any jurisdiction in which the Company is established or from which it exports or reexports any items or in which it provides services,
including without limitation the Export Administration Regulations administrated by the U.S. Department of Commerce, sanctions and embargo executive orders and regulations administered by the Office of Foreign Assets Control of the U.S. Treasury
Department and the International Traffic in Arms Regulations administered by the U.S. State Department, all as amended from time to time, and without violation of and in compliance with the requirements of any applicable general licenses or license
exceptions, and any required export or reexport licenses or authorizations granted under such laws, regulations or orders, which licenses or authorizations are described in Schedule 2.31; 

(e) without violation and in compliance with the requirements of the U.S. Foreign Corrupt Practices Act of 1977, as amended, any
applicable Law implementing the OECD Convention on Combating Bribery of Foreign Public Officials in International Business or other applicable conventions, and any other applicable anti-corruption law; and 

(f) without written or express notice of violation and in compliance with any and all applicable import laws, orders or regulations of
any applicable jurisdiction, as amended from time to time, and without notice of violation of and in compliance with any required import permits, licenses, authorizations and general licenses granted under such laws, regulations or orders, which
permits, licenses and authorizations are described in Schedule 2.31. 
  

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 2.32 Customs. Except as set forth on Schedule 2.32, since January 1,
2008, the Company (a) has acted without violation and in compliance with all customs laws, including without limitation the Tariff Act of 1930, as amended, (b) has not received any notice alleging a violation and (c) has not been and
is not currently the subject of a focused assessment or other audit conducted by U.S. Customs and Border Protection. No penalty or liquidated damages claims have been initiated by U.S. Customs and Border Protection (formerly U.S. Customs Service)
against the Company. The Company has no liability in connection with its respective customs compliance and buying agency practices. 

2.33 Government Contracts. Schedule 2.33 lists all of the agreements, contracts, plans, leases or commitments that the
Company has entered into with a Government (the “Government Contracts”). The Company has not received a cure notice in connection with any Government Contract. None of the Government Contracts have been terminated for default. The
Company has not been suspended or debarred from contracting by a Government. The Company has not received a document subpoena or been the subject of an investigation or enforcement action in connection with a contract involving a Government. The
Company is in compliance with the requirements of Executive Order 11246, as amended, and related equal opportunity and affirmative action clauses of its contracts with the U.S Governmental authorities. 

2.34 Restrictions on Business Activities. Except for the contracts listed on Schedule 2.34(a), there is no Contract
(including covenants not to compete), judgment, injunction, Order or decree binding upon the Company that has or could reasonably be expected to have, whether before or after consummation of the Merger, the effect of prohibiting or impairing any
Company Intellectual Property, any current or future business practice of the Company, any acquisition of property (tangible or intangible) by the Company or the conduct of business by the Company as currently conducted. Without limiting the
generality of the foregoing, the Company has not entered into any customer or other similar Contract that includes a “most favored pricing” or similar clause restricting or otherwise impacting the right of the Company to sell products or
provides services in any manner or terms under which the Company is restricted from selling, licensing or otherwise distributing any of their respective technology or products to, or from providing services to, customers or potential customers or
any class of customers, in any geographic area, during any period of time or in any segment of the market other than the restrictions in those Company Intellectual Property Agreements listed on Schedule 2.34(b). The Company has not restricted
or otherwise prohibited access to any documents or information from Parent on the basis that (i) the Company may not be permitted to provide such access pursuant to applicable Law, (ii) access to any such documents or information is
prohibited pursuant to the terms of any confidentiality, non-disclosure or other similar agreement to which the Company is a party as of the date hereof, or (iii) access to documents or information would, in the Company’s reasonable good
faith opinion after consultation with outside legal counsel, result in the loss of attorney-client privilege, work product doctrine or other applicable legal privilege applicable to such documents or information. 

 

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 2.35 Brokers, Finders. Except for UBS, no finder, broker, agent, or other
intermediary, acting on behalf of the Securityholders or the Company, is entitled to a commission, fee, or other compensation or obligation in connection with the negotiation or consummation of this Agreement or any of the transactions contemplated
hereby. 
 2.36 Takeover Statutes. No “business combination,” “fair price,” “moratorium,”
“control share acquisition” or other similar anti-takeover statute or regulation enacted under state or federal Laws in the United States (each a “Takeover Statute”) is applicable to the Company or the Merger. 

2.37 Investment Company. The Company is not an “investment company”, or an “affiliated person” of an
“investment company”, or a company “controlled” by an “investment company” as such terms are defined in the Investment Company Act of 1940. 

2.38 Information Statement. None of the information relating to the Company in the Information Statement will contain an untrue
statement of material fact or will omit to state any material fact required to be stated therein or necessary to make the statements therein not misleading. 

2.39 Accredited Investors. Except for those holders of Series 1 Preferred Stock, Series 2 Preferred Stock and Preferred Stock
Warrants listed on Schedule 2.39, to the Company’s Knowledge, as of the date hereof, each of the holders of Series 1 Preferred Stock, Series 2 Preferred Stock and Preferred Stock Warrants is an “accredited investor”
as defined in Rule 501 of Regulation D promulgated under the Securities Act. 
 ARTICLE 3 

REPRESENTATIONS AND WARRANTIES OF PARENT AND ACQUISITION 

SUBSIDIARY 

Parent and Acquisition Subsidiary hereby makes the following representations and warranties to the Company: 

3.1 Organization; Authorization; No Conflict. Parent is a corporation, duly organized, validly existing and in good standing under
the laws of the State of Delaware. Acquisition Subsidiary is a corporation, duly organized, validly existing and in good standing under the laws of the State of California. Each of Parent and Acquisition Subsidiary has all requisite power and
authority to execute and deliver this Agreement, to perform its obligations hereunder and to consummate the transactions contemplated hereby. The execution, delivery and performance of this Agreement by Parent and Acquisition Subsidiary has been
duly authorized by all requisite corporate action on the part of Parent and Acquisition Subsidiary. Assuming the valid execution of this Agreement by each of the Company and the Representative, this Agreement constitutes a valid and binding
obligation of Parent and Acquisition Subsidiary, enforceable against each such party in accordance with its terms, except to the extent that enforceability may be limited by bankruptcy and other similar laws affecting the rights and remedies of
creditors generally. 
  

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 3.2 Capitalization. 

(a) The authorized capital stock of Parent (“Parent Capital Stock”) consists of 300,000,000 shares of the common stock
of Parent, par value $.01 per share (“Parent Common Stock”), and 50,000,000 shares of preferred stock. As of May 20, 2010, 227,416,132 shares of common stock were outstanding. All shares of Parent Capital Stock have been duly
authorized, and all issued and outstanding shares of Parent Capital Stock have been validly issued and are fully paid and nonassessable. 

(b) The entire authorized capital stock of Acquisition Subsidiary consists solely of 1,000 shares of common stock, par value $0.01 per
share, of which 1,000 shares are issued and outstanding. Parent owns all issued and outstanding capital stock of Acquisition Subsidiary, free and clear of any and all Liens. 

(c) The shares of Parent to be issued in accordance with this Agreement will, upon such issuance, be duly authorized, validly issued,
fully paid and non-assessable, free of any Liens (other than Liens created by this Agreement or any other document executed in connection herewith and obligations of the holder thereof to comply with applicable Laws in connection with the transfer
or sale thereof) and not subject to any preemptive rights or rights of first refusal created by statute, the organizational documents of Parent or Acquisition Subsidiary or any Contract to which Parent or Acquisition Subsidiary is a party or is
bound. 
 3.3 Consents. Except as set forth on Schedule 3.3, no waiver or consent of any third person or
Government is required for the execution by Parent and Acquisition Subsidiary of this Agreement, or the consummation by Parent and Acquisition Subsidiary of the transactions contemplated hereby. 

3.4 SEC Documents; Financial Statements. 

(a) Parent has made available to the Company a true and complete copy of all registration statements, reports, proxy statements or
information statements filed by it with the SEC since December 31, 2008 (collectively, the “Parent SEC Documents”). As of their respective filing dates, each Parent SEC Document complied (and each document to be filed with the
SEC by Parent after the date hereof and before the Closing Date (“Subsequent SEC Documents”) will comply) in all material respects with the requirements of the Exchange Act or the Securities Act, as applicable, and each Parent SEC
Document, as of its respective filing date and taken together with all other Parent SEC Documents filed prior to such date, did not contain (and each Subsequent SEC Document will not, as of its filing date and taken together with the Parent SEC
Documents and Subsequent SEC Documents filed prior to such date, contain) any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements made therein, in light of the
circumstances under which they were made, not misleading, except to the extent corrected in a subsequently filed Parent SEC Document or Subsequent SEC Document, and to the extent based on information (financial or otherwise) provided by the Company
or any of its Subsidiaries or any of their respective members, directors, officers, partners, employees, successors, assigns, representatives or agents. 
  

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 (b) The Parent SEC Documents contain an audited consolidated balance sheet of Parent as
of December 31, 2009 and the related audited consolidated statements of income and cash flow for the year then ended (collectively, the “Parent Financials”). The Parent Financials (i) have been prepared in accordance with
GAAP applied on a consistent basis throughout the periods indicated (except as may be indicated in the notes thereto or, in the case of the unaudited financial statements, as permitted by GAAP), and (ii) present fairly, in all material
respects, the consolidated financial condition and results of operations and cash flows of Parent and each of its Subsidiaries as of the dates, and for the periods, indicated therein, except as otherwise noted therein (subject, in the case of
interim period financial statements, to normal recurring year-end audit adjustments, none of which, individually or in the aggregate, are material). 

3.5 Brokers, Finders. Except for GCA Savvian, no finder, broker, agent, or other intermediary, acting on behalf of Parent or
Acquisition Subsidiary, is entitled to a commission, fee, or other compensation or obligation in connection with the negotiation or consummation of this Agreement or any of the transactions contemplated hereby. 

3.6 Financing. Parent has and will have prior to the Effective Time, sufficient cash, available lines of credit or other sources
of immediately available funds and sufficiently authorized but unissued shares of Parent Common Stock to enable it to pay the aggregate Merger Consideration. 

3.7 Litigation. There is no Action or Order pending or, to the knowledge of Parent, threatened against Parent or Acquisition
Subsidiary challenging, enjoining or preventing this Agreement or the consummation of the transactions contemplated hereby. As of the date hereof, except as set forth on Schedule 3.7 or as disclosed in the Parent SEC Documents filed with the
SEC prior to the date of this Agreement, there is no material action, suit, claim or proceeding of any nature pending, or to the knowledge of Parent, threatened, against Parent or any of its Subsidiaries or any of their respective officers or
directors. As of the date hereof, there is no investigation or similar proceeding pending or, to the knowledge of Parent, threatened, against Parent by or before the SEC or New York Stock Exchange. As of the date hereof, no Government entity has at
any time challenged the legal right of Parent or any of its Subsidiaries to conduct its operations as presently or previously conducted. 

3.8 Information Statement. None of the information relating to the Parent or the Acquisition Subsidiary in the Information
Statement will contain an untrue statement of material fact or will omit to state any material fact required to be stated therein or necessary to make the statements therein not misleading. 

3.9 Absence of Certain Changes or Events. Since December 31, 2009 and until the date of this Agreement, except as disclosed
in the Parent SEC Documents, there has not occurred: (a) any change, event or condition (whether or not covered by insurance) that, individually or in the aggregate with any other changes, events and conditions, has resulted in, or could
reasonably be expected to result in, a Parent Material Adverse Effect, (b) any declaration, setting aside or payment of any dividend or other distribution (whether in cash, stock or property) with respect to any of Parent Capital Stock,
(c) any amendment of any provision of the certificate of incorporation or bylaws of, or of any material term of any outstanding security issued by, Parent, (d) any material change in any method of accounting or accounting practice by
Parent except for any such change required by a change in GAAP, or (e) any split, combination or reclassification of any of Parent Capital Stock or any issuance or the authorization of any issuance of any other securities in respect of, in lieu
of, or in substitution for shares of Parent Capital Stock. 
  

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 3.10 Interim Operations of Acquisition Subsidiary. 

(a) Acquisition Subsidiary was formed solely for the purpose of engaging in the transactions contemplated by this Agreement and has
engaged in no business activities other than as expressly contemplated by this Agreement. 
 (b) As of the date hereof and as of
the Effective Time, except for (i) obligations or liabilities incurred in connection with its organization and (ii) this Agreement and any other agreements or arrangements contemplated by this Agreement or in furtherance of the
transactions contemplated hereby, Acquisition Subsidiary has not incurred, directly or indirectly, through any of its Subsidiaries or Affiliates, any obligations or liabilities or engaged in any business activities of any type or kind whatsoever or
entered into any agreements or arrangements with any Person. 
 ARTICLE 4 

COVENANTS OF THE COMPANY 

4.1 Conduct of Business of the Company. Except as set forth in Schedule 4.1 or as otherwise expressly permitted by this
Agreement or as Parent may otherwise consent to or approve in writing on and after the date hereof and prior to the Closing Date, during the period from the date of this Agreement to the Effective Time, the Company shall operate in the Ordinary
Course of Business and in compliance with all applicable Laws and regulations and, to the extent consistent therewith, use commercially reasonable efforts to preserve intact its current business organization, to keep available the services of its
current officers and other employees (except in the case of voluntary resignations or terminations on account of job performance or for cause), to preserve its cash, and to preserve its relationships with those persons having business dealings with
it, including vendors and customers, to the end that its goodwill and ongoing business shall be unimpaired at the Effective Time. Furthermore, the Company covenants, represents and warrants that from and after the date hereof, unless Parent shall
otherwise expressly consent in writing, the Company shall use its commercially reasonable efforts to: (i) keep in full force and effect insurance comparable in amount and scope of coverage to insurance now carried by it; and (ii) pay all
accounts payable and other obligations in the Ordinary Course of Business consistent with the provisions of this Agreement, except if the same are contested in good faith, and, in the case of the failure to pay any material accounts payable or other
obligations which are contested in good faith, only after consultation with Parent. Without limiting the generality of the foregoing (but subject to the above exceptions), except as set forth in Schedule 4.1 or as Parent may otherwise consent
to or approve in writing on and after the date hereof and prior to the Closing Date, during the period from the date of this Agreement to the Effective Time, the Company shall not: 

(a) (i) declare, set aside or pay any dividends on, or make any other distributions in respect of, any of its Shares or any other
equity interests, (ii) split, combine or reclassify any of its Shares or any other equity interests or issue or authorize the issuance of any other securities in respect of, in lieu of or in substitution for shares of its Shares or any other
equity interests, except for issuances of capital stock upon the exercise of options outstanding as of the date hereof in accordance with their present terms, (iii) purchase, redeem or otherwise acquire any Shares or any other securities
thereof or any rights, warrants or options to acquire any such shares or other securities or (iv) make any other actual, constructive or deemed distribution in respect of any Shares or other equity interests or otherwise make any payments to
Securityholders in their capacity as such; 
  

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 (b) issue, deliver, sell, pledge or otherwise encumber or subject to any Lien any
Shares, any other voting securities or other equity interests or any securities convertible into, or any rights, warrants or options to acquire, any such Shares, voting securities or other equity interests or convertible securities; 

(c) amend its certificate of incorporation or bylaws or organizational documents; 

(d) acquire or agree to acquire by merging or consolidating with, or by purchasing a substantial portion of the stock or assets of, or by
any other manner, any business or any Person; 
 (e) sell, lease, license, mortgage or otherwise encumber or subject to any Lien
or otherwise dispose of any of the Property (including securitizations), other than in the Ordinary Course of Business; 
 (f)
incur any Indebtedness for borrowed money or issue any debt securities, receive any equity or debt financing, make any loans, advances or capital contributions to, or investments in, any Person; 

(g) assume, guarantee or endorse the obligations of any other Person, indemnify any other person, issue any support guarantees or
otherwise become responsible for the obligations of any Person; 
 (h) take, or agree to commit to take, any action that would
or is reasonably likely to result in any of the conditions to the Merger not being satisfied, or that would impair the ability of any of the Parties to consummate the Merger in accordance with the terms hereof or delay such consummation; 

(i) make any capital expenditure or expenditures that exceed $50,000 in the aggregate; 

(j) (1) make any material Tax election; (2) adopt any material accounting method that is inconsistent with elections made, positions
taken or methods used in preparing or filing similar Tax Returns in prior periods; (3) file any amended Tax Returns or claims for Tax refunds; (4) enter into any closing agreement related to any material Tax; (5) surrender any
material Tax claim, audit or assessment; (6) surrender any right to claim a material Tax refund, offset or other reduction in Tax liability surrendered; (7) consent to any extension or waiver of the limitations period applicable to any
material Tax claim or assessment; or (8) settle or resolve any material Tax controversy. 
  

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 (k) except as required under an existing Plan, (i) grant or commit to grant any
employee, Securityholder, officer, director or agent any increase in wages, bonus, severance, profit sharing, retirement, insurance or other compensation or benefits (other than an increase in wages in the Ordinary Course of Business for any
individual other than a director or officer of the Company), (ii) amend or terminate any Plan, except to the extent necessary to comply with applicable Law, (iii) establish any new compensation or benefit plan or arrangement, or
(iv) enter into any employment, consulting, retention, termination, severance or collective bargaining agreement with the exception of at-will offer letters with newly-hired employees that have been disclosed to Parent pursuant to
Section 2.22(d); 
 (l) take, or agree to commit to take, any action that would or is reasonably likely to result in
the acceleration of any options; 
 (m) revalue any of its assets, including, without limitation, writing down the value of
inventory or writing-off notes or accounts receivable other than in the Ordinary Course of Business or as required by GAAP; 

(n) (i) enter into any contract or agreement, other than in the Ordinary Course of Business, or amend in any material respect any of
the Contracts other than in the Ordinary Course of Business; or (ii) enter into any contract, agreement, commitment or arrangement providing for, or amend any contract, agreement, commitment or arrangement to provide for, the taking of any
action that would be prohibited hereunder; 
 (o) pay, discharge or satisfy any claims, liabilities or obligations (absolute,
accrued, asserted or unasserted, contingent or otherwise), other than the payment, discharge or satisfaction in the Ordinary Course of Business of liabilities reflected or reserved against in the Balance Sheet or incurred in the Ordinary Course of
Business since the date of the Balance Sheet; 
 (p) settle or compromise any pending or threatened suit, action or claim
relating to the transactions contemplated hereby other than a Securityholder Claim which is settled or compromised in accordance with Section 4.8; 

(q) enter into any agreement or arrangement that would limit or restrict the Surviving Company and its Affiliates (including Parent) or
any successor thereto, from engaging or competing in any line of business or in any geographic area; 
 (r) enter into,
terminate or amend in any material respect any Contract listed on Schedule 2.12(a) or Schedule 2.14(c); 
  

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 (s) sell, transfer or grant any license with respect to Intellectual Property of the
Company other than non-exclusive licenses granted in the Ordinary Course of Business, or fail to make any filing, pay any fee or take any other action necessary to maintain the existence, validity and ownership by the Company of any material
Intellectual Property owned by the Company;
 (t) fail to pay any fee, make any filing or take any action necessary to maintain
the ownership or right to use any Intellectual Property that is material to the business of the Company; 
 (u) fail to
maintain, abandon, or lose the right to use or otherwise exploit any Intellectual Property material to the business of the Company; 

(v) take any of the actions described in Section 2.17; or 

(w) authorize, or commit or agree to take, any of the foregoing actions. 

4.2 Notification of Certain Matters. From the date hereof until the Closing Date, the Company shall promptly notify Parent if, to
the Company’s Knowledge: 
 (a) There exists any inaccuracy in, or any breach of, any representation or warranty of the
Company set forth in Article 2 of this Agreement, or any breach in any material respect of any covenant or obligation of the Company set forth in this Agreement, in either case that would cause or result (assuming for this purpose that the
date the same became known to the Company is the Closing Date) in a failure of the condition to Closing set forth in Section 7.3(a) hereof to be satisfied; 

(b) Any written or express notice or other communication from any Person alleging that the consent of such Person is or may be required
in connection with the transactions contemplated hereby; 
 (c) Any written or express notice or other communication from any
Government in connection with the transactions contemplated hereby; 
 (d) Any action, suit, or proceeding commenced against the
Company that, if pending on the date hereof, would have been required to have been disclosed pursuant to this Agreement; and 

(e) (i) There is damage or destruction by fire or other casualty of any material asset or part thereof or (ii) any asset or part
thereof becomes the subject of any proceeding or threatened proceeding for the taking thereof or of any right relating thereto by condemnation, eminent domain or other similar governmental action. 

 

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 The Company hereby acknowledges that Parent does not and shall not waive any right it may have hereunder
(or under applicable Law) as a result of such notifications and any notification given pursuant to this Section 4.2 (including any supplement to the Schedules to this Agreement), and that such notifications shall (i) not have any
effect for purposes of determining satisfaction of the conditions set forth in Section 7.3 of this Agreement, and (ii) not in any way limit the Parent’s exercise of its rights hereunder (including its rights to indemnification
hereunder) or other rights under applicable law. In addition, no such notification shall be deemed to avoid or cure any misrepresentation or breach of warranty or constitute an amendment of any representation, warranty or statement in this Agreement
(including for purposes of determining the fulfillment of the condition precedent in Section 7.3(a)) or negate any right to indemnification hereunder or other rights under applicable law (it being understood that the Parent Indemnified
Persons are being indemnified under Section 8.2 as if none of the disclosures or exceptions to the representations and warranties of the Company made herein on the date hereof have changed on and as of the Closing Date). 

4.3 Access to Information. To the extent permitted by applicable Law and subject to the Confidentiality Agreement dated
August 26, 2009 (the “Confidentiality Agreement”), the Company shall afford to Parent and to the officers, employees, accountants, counsel, financial advisors and other representatives of Parent, reasonable access during normal
business hours during the period from the date of this Agreement until the earlier of the Effective Time or the termination of this Agreement pursuant to Section 9.1 to the Company’s properties, books, contracts, commitments,
personnel and records and, during such period, the Company shall furnish promptly to Parent all other information concerning the Company’s business, properties and personnel as Parent may reasonably request; provided that no
investigation pursuant to this Section 4.3 shall affect or modify any representation or warranty or any liability with respect thereto; and provided further, however, that the Company may restrict or otherwise prohibit access to
any documents or information to the extent that (i) the Company may not be permitted to provide such access pursuant to applicable Law, (ii) access to any such documents or information is prohibited pursuant to the terms of any
confidentiality, non-disclosure or other similar agreement to which the Company is a party as of the date hereof, or (iii) access to documents or information would, in the Company’s reasonable good faith opinion after consultation with
outside legal counsel, result in the loss of attorney-client privilege, work product doctrine or other applicable legal privilege applicable to such documents or information. Parent shall hold, and shall cause its respective officers, employees,
accountants, counsel, financial advisors and other representatives and Affiliates to hold, any nonpublic information in confidence in accordance with the terms of the Confidentiality Agreement. If at any time after the date hereof, the Company
withholds information or documents from Parent because the Company determines in good faith that (i), (ii) or (iii) above may be implicated, then the Company shall promptly (and in no event later than 1 Business Day thereafter) inform
Parent of the same and Parent and the Company shall discuss the same as soon as reasonably practicable thereafter. 
 4.4
Reasonable Best Efforts; Cooperation. Upon the terms and subject to the conditions set forth in this Agreement, the Company agrees to use reasonable best efforts to take, or cause to be taken, all actions, and to do, or cause to be done, and
to assist and cooperate with Parent and Acquisition Subsidiary in doing, all things necessary, proper or advisable to consummate and make effective, in the most expeditious manner practicable, the Merger and the other transactions contemplated
hereby, including, but not limited to, (i) the obtaining of all necessary actions or nonactions, waivers, consents and approvals from Government authorities and the making of all necessary registrations and filings and the taking of all steps
as may be necessary to obtain an approval or waiver from, or to avoid an action or proceeding by, any Government, (ii) timely making all necessary filings under the HSR Act, (iii) the obtaining of all necessary consents, approvals or
waivers from third parties, (iv) the defending of any lawsuits or other legal proceedings, whether judicial or administrative, challenging this Agreement or the consummation of the transactions contemplated hereby, including seeking to have any
stay or temporary restraining order entered by any court or other Government vacated or reversed, and (v) the execution and delivery of any additional instruments necessary to consummate the transactions contemplated hereby and to fully carry
out the purposes of this Agreement. In consummating the Merger and the other transactions contemplated hereby, the Company shall comply with all applicable Laws. 

 

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 4.5 Company Shareholder Approval. 

(a) As promptly as reasonably practicable following the date of this Agreement, the Company shall, in accordance with the Company’s
Organizational Documents and applicable Law, provide to its Shareholders an information statement prepared by the Company (the “Information Statement”) and other appropriate documents in connection with the solicitation of:
(i) written consents of the Shareholders in favor of the approval of this Agreement, the Agreement of Merger and the other transactions contemplated hereby; and (ii) waivers by the Shareholders of their appraisal rights in connection with
the Merger. The Parties shall use their respective reasonable best efforts to complete the Information Statement no later than twenty-one (21) days after the date hereof. Notwithstanding anything to the contrary contained in this Agreement, the
Information Statement and any other materials submitted to the Shareholders in connection with the transactions contemplated by this Agreement shall be subject to prior review and reasonable approval by Parent, and in no event shall the Company
provide the Information Statement to the Shareholders without the prior written consent of Parent. In connection with obtaining such approval by the Shareholders, the Company shall comply with all legal requirements in connection therewith,
including to the extent necessary or required, the information delivery requirements of Regulation D. 
 (b) The Board of
Directors of the Company has adopted a resolution recommending the approval of this Agreement and the Agreement of Merger by the Shareholders (the “Company Recommendation”). The Board of Directors will not fail to make, withdraw or
modify in a manner adverse to Parent or publicly propose to withdraw or modify in a manner adverse to Parent the Company Recommendation (it being understood that taking a neutral position or no position with respect to any Acquisition Proposal shall
be considered an adverse modification), recommend, adopt or approve or publicly propose to recommend, adopt or approve an Acquisition Proposal, or take any action or make any statement inconsistent with the Company Recommendation (any of the
foregoing an “Adverse Recommendation Change”) other than as permitted by and in accordance with the terms of Sections 4.7(b) and 4.7(c). Unless the Board of Directors of the Company shall have effected an Adverse
Recommendation Change pursuant to and in accordance with the terms of Sections 4.7(b) and 4.7(c)), the Board of Directors of the Company (in its capacity as such) (i) will continue to recommend to the Shareholders that they
approve this Agreement and the Agreement of Merger and approve the transactions contemplated hereby and (ii) will use its reasonable best efforts to obtain the Company Shareholder Approval as soon as reasonably practicable following the
distribution of the Information Statement and in no event later than fifteen (15) days after the distribution of the Information Statement by securing and causing to be filed with the Company consents from the Shareholders necessary to secure
the same, which consents shall be in a form that is reasonably acceptable to Parent and which consents shall not be delivered to any Shareholder for use by such Shareholder until Parent has provided written consent to commence such delivery;
provided however, in the event of an Adverse Recommendation Change pursuant to and in accordance with the terms of Sections 4.7(b) and 4.7(c), for so long as this Agreement remains in effect, at the request of Parent, the Company shall
provide Parent with any reasonable assistance necessary to enable Parent to continue to seek, secure and process consents from the Shareholders necessary to secure the Company Shareholder Approval (including by providing information and other
reasonable assistance to Parent to enable Parent to contact Shareholders directly in an effort to seek, secure and process written consents from Shareholders). In no event shall the Company commence the process of seeking to secure or obtain the
consent of the Shareholders necessary to obtain the Company Shareholder Approval without the prior consent of Parent. As expeditiously as possible following the receipt of the Company Shareholder Approval, the Company shall deliver to Parent a
certificate executed on behalf of the Company by its Secretary and certifying that the Company Shareholder Approval has been obtained. 
  

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 (c) Subject to the limitations in Sections 4.5(a) and 4.5(b), without
limiting the generality of the foregoing, this Agreement and the Merger shall be submitted to the Shareholders as soon as reasonably practicable whether or not (i) an Adverse Recommendation Change shall have occurred or (ii) an Acquisition
Proposal shall have been publicly proposed or announced or otherwise submitted to the Company or any of its representatives. 

(d) Unless the Board of Directors of the Company shall have effected an Adverse Recommendation Change pursuant to and in accordance with
the terms of Sections 4.7(b) and 4.7(c), the Company will use its reasonable best efforts to obtain the Company Shareholder Approval as soon as reasonably practicable following the distribution of the Information Statement and in no
event later than fifteen (15) days after the distribution of the Information Statement by securing and causing to be filed with the Company consents from the Shareholders necessary to secure the same, which consents shall be in a form that is
reasonably acceptable to Parent; provided, however, in the event of an Adverse Recommendation Change pursuant to and in accordance with the terms of Sections 4.7(b) and 4.7(c), for so long as this Agreement remains in effect, at the
request of Parent, the Company shall provide Parent with any reasonable assistance necessary to enable Parent to continue to seek, secure and process consents from the Shareholders necessary to secure the Company Shareholder Approval (including by
providing information and other reasonable assistance to Parent to enable Parent to contact Shareholders directly in an effort to seek, secure and process written consents from Shareholders). 

(e) 280G Covenant. Prior to the Closing Date, the Company shall submit to a Shareholder vote the right of any “disqualified
individual” (as defined in Section 280G(c) of the Code) to receive any and all payments (or other benefits) contingent on the consummation of the transactions contemplated by this Agreement (within the meaning of
Section 280G(b)(2)(A)(i) of the Code) to the extent necessary so that no payment received by such “disqualified individual” would be a “parachute payment” under Section 280G(b) of the Code (determined without regard to
Section 280G(b)(4) of the Code), in a manner that satisfies the stockholder approval requirements under Section 280G(b)(5)(B) of the Code and regulations promulgated thereunder. Prior to the Closing Date, the Company shall have delivered
to Parent evidence reasonably satisfactory to Parent (i) that Shareholder approval was solicited in conformance with Section 280G and the regulations promulgated thereunder, and the requisite Shareholder approval was obtained with respect
to any payments that were subject to the Shareholder vote (the “280G Approval”), or (ii) that the 280G Approval was not obtained and as a consequence, that such “parachute payments” shall not be made or provided,
pursuant to the waivers of those payments and/or benefits which were executed by the affected individuals prior to Shareholder vote. Such vote shall establish the “disqualified individual’s” right to the payment or other compensation.
In addition, before the vote is submitted to the Shareholders, the Company shall provide adequate disclosure to the Shareholders of all material facts concerning all payments that, but for such vote, could be deemed “parachute payments” to
a “disqualified individual” under Section 280G of the Code in a manner that satisfies Section 280G(b)(5)(B)(ii) of the Code and regulations promulgated thereunder. Parent and its counsel shall have the right to review and comment
on all documents to be delivered to the Shareholders in connection with such vote. For purposes of clarity, only that portion of the payments and/or benefits that is in excess of 2.99 times the applicable individual’s “base amount”
(within the meaning of Section 280G(b)(3) of the Code) need be submitted for a Shareholder vote, and subject to waiver, in accordance with the provisions above. 

 

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 (f) Following the date hereof, the Company shall use its commercially reasonable efforts
to obtain and deliver to Parent fully executed Side Agreements from those Securityholders that did not deliver fully executed Side Agreements contemporaneously with the execution of this Agreement. In addition, following the date hereof, the Company
shall use its reasonable best efforts to obtain and deliver to Parent true, correct and complete AIQ Forms dated on or after the date hereof from those holders of Series 1 Preferred Stock, Series 2 Preferred Stock and Preferred Stock Warrants as of
the date hereof; without limiting the scope of the foregoing, the Company shall use its reasonable best efforts to obtain as many of such AIQ Forms as possible prior to June 1, 2010. 

4.6 Takeover Statutes. If any Takeover Statute is or may become applicable to the Merger or any the other transactions
contemplated hereby, the Company and the Board of Directors will grant such approvals, and will take such other actions as are necessary so that the Merger or any the other transactions contemplated hereby may be consummated as promptly as
practicable on the terms contemplated hereby or thereby and will otherwise act to eliminate or minimize the effects of any Takeover Statute on the Merger or any of the other transactions contemplated hereby. 

4.7 No Solicitation. 

(a) None of the Company, any of its directors, officers, employees, controlled Affiliates, representatives, agents or any director,
officer, employee or controlled Affiliate of those Shareholders listed on Schedule 4.7(a) (collectively, “Agents”), shall directly or indirectly: (i) solicit, initiate, support or participate in any negotiations or
discussions with respect to any Acquisition Proposal; (ii) disclose any information not customarily disclosed in the Ordinary Course of Business to any Third Party concerning the Company and which the Company believes will or is reasonably
likely to be used for the purposes of formulating any offer, indication of interest or proposal for an Acquisition Proposal; (iii) assist, cooperate with, knowingly facilitate or encourage any Third Party to make any offer, indication of
interest or proposal for an Acquisition Proposal; (iv) execute, approve or accept or agree to execute, approve or accept or enter into a contract, arrangement, or understanding regarding any Acquisition Proposal (other than a confidentiality
agreement permitted by Section 4.7(b)); (v) grant any waiver or release under any standstill or similar agreement with respect to any class of equity securities of the Company or (vi) authorize or permit any of the
Company’s Agents to take any of the actions set forth in clauses (i) through (iv) above. Without limiting the foregoing, it is agreed that any violation of the restrictions on the Company set forth in the preceding sentence by any
Agent of the Company shall be a breach of this Section by the Company. The Company shall, and shall cause its Agents to, cease immediately and cause to be terminated any and all existing activities, discussions or negotiations, if any, with any
Third Party conducted prior to the date of this Agreement with respect to any Acquisition Proposal and shall use its reasonable best efforts to cause any such Third Party (or its agents or advisors) in possession of confidential information about
the Company that was furnished by or on behalf of the Company to return or destroy all such information. During the term of this Agreement, the Company shall not take any actions to make any state takeover statute (including any California state
takeover statute) or similar statute inapplicable to any Acquisition Proposal. 
  

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 (b) Notwithstanding the foregoing, at any time prior to obtaining the Company
Shareholder Approval, the Board of Directors of the Company, directly or indirectly through advisors, agents or other intermediaries, may, subject to compliance with Section 4.7(c), (i) engage in negotiations or discussions with any
Third Party that, subject to the Company’s compliance with Section 4.7(c), has made after the date of this Agreement a Superior Proposal or an unsolicited bona fide Acquisition Proposal that the Board of Directors of the Company
determines in good faith (after considering the advice of a financial advisor of nationally recognized reputation and the Company’s outside legal counsel) is reasonably likely to lead to a Superior Proposal, (ii) thereafter furnish to such
Third Party nonpublic information relating to the Company pursuant to a confidentiality agreement with terms no less favorable to the Company than those contained in the Confidentiality Agreement (a copy of which shall be provided, promptly after
its execution, for informational purposes only to Parent); provided that all such information (to the extent that such information has not been previously provided or made available to Parent) is provided or made available to Parent, as the case may
be, prior to or substantially concurrently with the time it is provided or made available to such Third Party) and (iii) following receipt of a Superior Proposal after the date of this Agreement, make an Adverse Recommendation Change, but in
each case referred to in the foregoing clauses (i) through (iii) only if the Board of Directors of the Company determines in good faith by a majority vote, after considering advice from outside legal counsel to the Company, that the
failure to take such action is inconsistent with its fiduciary duties under applicable Law. 
 (c) The Board of Directors of the
Company shall not take any of the actions referred to in clauses (i) through (iii) of Section 4.7(b) (including, without limitation, making an Adverse Recommendation Change) unless the Company shall be permitted to do so in
accordance with Section 4.7(b) and shall have delivered to Parent a written notice at least 48 hours prior to taking such action advising Parent that it intends to take such action, and the Company shall continue to advise Parent after
taking such action of the status and material terms of any discussions and negotiations with the Third Party. In addition, the Company shall notify Parent promptly (but in no event later than 24 hours) after receipt by the Company of any Acquisition
Proposal or any inquiry relating to an Acquisition Proposal, any indication that a Third Party is considering making an Acquisition Proposal or any request for information relating to the Company or for access to the business, properties, assets,
books or records of the Company by any Third Party that has made an Acquisition Proposal (or under circumstances that would be reasonably likely to lead to an Acquisition Proposal), which notice shall be provided in writing and shall identify the
Third Party making, and the material terms and conditions of, any such Acquisition Proposal, indication or request (including any changes thereto) or request, as applicable. The Company shall keep Parent reasonably informed, on a reasonably current
basis, of the status and material terms of any such Acquisition Proposal, indication or request or request, as applicable (including any material changes thereto) and shall promptly (but in no event later than 24 hours after receipt) provide to
Parent copies of all correspondence and written materials sent or provided to the Company that describes any terms or conditions of any Acquisition Proposal. 
  

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 “Acquisition Proposal” means, other than the transactions contemplated
by this Agreement, any offer or proposal relating to, or any Third Party indication of interest in, (A) any acquisition or purchase, direct or indirect, of more than 15% of the assets of the Company (measured by the fair market value thereof)
or more than 15% of any class of equity or voting securities of the Company, including any tender offer (including a self tender offer) or exchange offer for more than 15% of any class of equity or voting securities of the Company or (B) any
merger, consolidation, share exchange, business combination, reorganization, recapitalization, liquidation, dissolution or other similar transaction involving the Company, in any case which would have any of the effects described in the preceding
clause (A). 
 “Superior Proposal” means any bona fide, unsolicited written Acquisition Proposal for all of the
outstanding Shares on terms that the Board of Directors of the Company determines in good faith by a majority vote, after considering the advice of a financial advisor of nationally recognized reputation and outside legal counsel to the Company, and
after taking into account all the terms and conditions of the Acquisition Proposal would result in a transaction that if consummated, is more favorable in the aggregate to the Securityholders than the Merger (or, if applicable, any binding written
proposal by Parent in the form of a proposed amendment to this Agreement that can be accepted by the Company by countersignature) taking into account all the terms and conditions of such Acquisition Proposal and this Agreement (or, if applicable,
any binding written proposal by Parent in the form of a proposed amendment to this Agreement that can be accepted by the Company by countersignature) (including the expected timing and likelihood of consummation, taking into account any governmental
and other approval requirements and the financial wherewithal of the Third Party relative to the financial wherewithal of Parent), (ii) that is reasonably capable of being completed on the terms proposed, taking into account the identity of the
person making the proposal, any approval requirements and all other financial, legal and other aspects of such proposal and (iii) for which financing, if a cash transaction (whether in whole or in part), is then fully committed or reasonably
determined by the Board of Directors of the Company to be available. 
 “Third Party” means any Person,
including as defined in Section 13(d) of the Exchange Act, other than Parent or any of its Affiliates, and the directors, officers, employees, agents and advisors of such Person, in each case, acting in such capacity. 

 

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 4.8 Securityholder Litigation. The Company shall promptly notify Parent and give
Parent the opportunity to participate in the defense or settlement of any Action brought by any Securityholder against the Company and/or its directors relating to the transactions contemplated by this Agreement, and no settlement of any such Action
shall be agreed to without Parent’s prior written consent (which shall not be unreasonably withheld, delayed or conditioned). 

4.9 SAS 100 Review. Following the date hereof, the Company shall cooperate and provide reasonable assistance to Parent (at
Parent’s expense) with respect to its review under Statement on Auditing Standards No. 100 of the Company’s interim financial statements for each period for which such statements are required to be included, or are included, in any
filing of Parent with the SEC. 
 ARTICLE 5 

COVENANTS OF PARENT 

5.1 Notification of Certain Matters. From the date hereof until the Closing Date, Parent shall promptly notify the Company if to
the actual knowledge of Parent’s executive officers: 
 (a) There exists any inaccuracy in, or any breach of, any
representation or warranty of Parent set forth in Article 3 of this Agreement, or any breach in any material respect of any covenant or obligation of Parent set forth in this Agreement, in either case that would cause or result in a failure
of the condition to Closing set forth in Section 7.2(a) hereof to be satisfied; 
 (b) Any written or express notice
or other communication from any Person alleging that the consent of such Person is or may be required in connection with the transactions contemplated hereby; 

(c) Any written or express notice or other communication received from any Government in connection with the transactions contemplated
hereby; and 
 (d) Any action, suit, or proceeding commenced against Parent or its Subsidiaries that, if pending on the date
hereof, would have been required to have been disclosed pursuant to this Agreement. 
 Parent hereby acknowledges that the Company does not and
shall not (and the Securityholders do not and will not) waive any right it or they may have hereunder (or under applicable law) as a result of such notifications and any notification given pursuant to this Section 5.1 (including any
supplement to the Schedules to this Agreement), and that such notifications shall (i) not have any effect for purposes of determining satisfaction of the conditions set forth in Section 7.2 of this Agreement, and (ii) not in
any way limit the Company’s exercise of its rights hereunder (including its rights to indemnification hereunder) or under applicable Law (or the Securityholders’ exercise of their rights hereunder (including their rights to indemnification
hereunder) or under applicable Law. In addition, no such notification shall be deemed to avoid or cure any misrepresentation or breach of warranty or constitute an amendment of any representation, warranty or statement in this Agreement (including
for purposes of determining the fulfillment of the condition precedent in Section 7.2(a)) or negate any right to indemnification hereunder or other rights under applicable law (it being understood that the Shareholder Indemnified Persons
are being indemnified under Section 8.2 as if none of the disclosures or exceptions to the representations and warranties of Parent made herein on the date hereof have changed on and as of the Closing Date). 

 

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 5.2 Reasonable Best Efforts; Cooperation. Upon the terms and subject to the
conditions set forth in this Agreement, Parent agrees to use reasonable best efforts to take, or cause to be taken, all actions, and to do, or cause to be done, and to assist and cooperate with the Company in doing, all things necessary, proper or
advisable to consummate and make effective, in the most expeditious manner practicable, the Merger and the other transactions contemplated hereby, including, but not limited to, (i) the obtaining of all necessary actions or nonactions, waivers,
consents and approvals from Government authorities and the making of all necessary registrations and filings and the taking of all steps as may be necessary to obtain an approval or waiver from, or to avoid an action or proceeding by, any
Government, (ii) timely making all necessary filings under the HSR Act, (iii) the obtaining of all necessary consents, approvals or waivers from third parties, (iv) the defending of any lawsuits or other legal proceedings, whether
judicial or administrative, challenging this Agreement or the consummation of the transactions contemplated hereby, including seeking to have any stay or temporary restraining order entered by any court or other Government vacated or reversed, and
(v) the execution and delivery of any additional instruments necessary to consummate the transactions contemplated hereby and to fully carry out the purposes of this Agreement; provided, however, that nothing in this Agreement shall require, or
be construed to require, Parent to proffer to, or agree to, sell, divest, lease, license, transfer, dispose of or otherwise hold separate or encumber, before or after the Effective Time, any assets, licenses, operations, rights, product lines,
businesses or interest therein of Parent, the Company or any of their respective Affiliates (or to consent to any sale, divestiture, lease, license, transfer, disposition or other encumbrance by Parent, the Company or the Surviving Company of any of
their assets, licenses, operations, rights, product lines, businesses or interest therein or to consent to any agreement to take any of the foregoing actions) or to agree to any material changes (including through a licensing arrangement) or
restriction on, or other impairment of Parent’s ability to own or operate, any such assets, licenses, operations, rights, product lines, businesses or interests therein or Parent’s ability to vote, transfer, receive dividends or otherwise
exercise full ownership rights with respect to the stock of the Surviving Company. Notwithstanding the foregoing, Parent shall not be required to take any actions relating to the registration of its securities under any applicable federal or state
Law (including without limitation conducting a fairness hearing as contemplated by California Law). 
 5.3 Benefits
Covenant. On and after the Effective Time, Parent shall, or shall cause the Surviving Company to: 
 (a) provide the
employees of the Company as of the Effective Time for so long as they remain employed by the Company (other than those employees to be terminated as of the Effective Time, each of whom is listed on Schedule 5.3(a)) (the “Covered
Employees”) with the same or substantially similar employee benefits and compensation plans, programs and arrangements that are provided to similarly situated employees of Parent and its Subsidiaries (other than with respect to the
Company’s 401(k) plan, with respect to which such employees will remain participants through January 1, 2011, at which time such employees will then be eligible to participate in Parent’s 401(k) plan), and which will be satisfied with
respect to medical benefits during 2010 by causing the Surviving Company to continue existing Company plans. 
  

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 (b) provide all Covered Employees with service credit for purposes of eligibility,
participation, vesting and levels of benefits (but not for benefit accruals under any defined benefit pension plan), under any employee benefit or compensation plan, program or arrangement adopted, maintained or contributed to by Parent or the
Surviving Company in which Covered Employees are eligible to participate, for all periods of employment with the Company (or any predecessor entities) prior to the Effective Time and with the Surviving Company and any of its Affiliates on and after
the Effective Time; and 
 (c) provide that, if applicable, any pre-existing condition, eligibility waiting periods and evidence
of insurability requirements are waived with respect to Covered Employees (and their eligible dependents) under medical, dental or vision plans of Parent or the Surviving Company in which Covered Employees participate after the Effective Time.

 5.4 Directors and Officers. 

(a) Prior to the Closing, the Company shall purchase a six-year tail policy (the “Tail Policy”) for its officers’
and directors’ liability insurance with an aggregate premium not in excess of Sixty Thousand Dollars ($60,000) in a form mutually acceptable to the Company and Parent, which shall provide such directors and officers with coverage for six years
following the Effective Time of not less than the existing coverage under, and have other terms not materially less favorable to, the insured persons than the directors’ and officers’ liability insurance coverage in effect for the Company
on February 1, 2010. Parent shall maintain (and not take any action to terminate) the Tail Policy during such six-year period. To the extent the aggregate premium of the Tail Policy is in excess of $60,000, such amount in excess of $60,000
shall be considered Indebtedness for purposes of this Agreement. 
 (b) The Surviving Company shall (and Parent shall cause the
Surviving Company to), honor and fulfill in all respects the obligations of the Company under any and all indemnification agreements between the Company and any of its current or former directors and officers that were in effect on February 1,
2010, copies of which are attached hereto as Schedule 5.4(b) (each, an “Company Indemnified Person” and collectively, the “Company Indemnified Persons”). In addition, during the period commencing at the
Effective Time and ending on the sixth anniversary of the Effective Time, the Surviving Company shall (and Parent shall cause the Surviving Company to) cause the Surviving Company Organizational Documents to contain provisions with respect to
indemnification, exculpation and the advancement of expenses, covering acts and omissions of the applicable Company Indemnified Persons, in each case in their capacities as officers or directors of the Company, occurring at or prior to the Effective
Time, that are at least as favorable as the indemnification, exculpation and advancement of expenses provisions contained in the Company Organizational Documents as of February 1, 2010, and, during such six-year period, except as required by
applicable Law, such provisions shall not be repealed, amended or otherwise modified in any manner that adversely affects the rights of the Company Indemnified Persons thereunder. 

 

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 (c) If Parent or the Surviving Corporation or any of its successors or assigns shall
(i) consolidate with or merge into any other Person and shall not be the continuing or surviving corporation or entity of such consolidation or merger, or (ii) transfer all or substantially all of its properties and assets to any Person,
then, and in each such case, proper provisions shall be made so that the successors and assigns of the Surviving Corporation shall assume all of the obligations of Parent and the Surviving Corporation set forth in this Section 5.4.

 (d) The obligations set forth in this Section 5.4 shall not be terminated, amended or otherwise modified in any
manner that adversely affects any Indemnified Person (or any other person who is a beneficiary under the Tail Policy (and their heirs and representatives)) without the prior written consent of such affected Indemnified Person or other person who is
a beneficiary under the Tail Policy (and their heirs and representatives). Each of the Indemnified Persons or other persons who are beneficiaries under the Tail Policy (and their heirs and representatives) are intended to be third party
beneficiaries of this Section 5.4, with full rights of enforcement as if a party thereto. 
 (e) Nothing in this
Agreement is intended to, shall be construed to or shall release, waive or impair any rights to directors’ and officers’ insurance claims under any policy that is or has been in existence with respect to the Company for any of its
directors, officers or other employees, it being understood and agreed that the indemnification provided for in this Section 5.4 is not prior to or in substitution for any such claims under such policies. 

(f) The Company Indemnified Persons are intended to be third party beneficiaries of the terms of this Section 5.4, with full
right, power and authority to enforce the provisions hereof directly against the Surviving Corporation and Parent as if such Company Indemnified Persons were a party hereto. 

5.5 Subsidiary Compliance. Parent shall cause Acquisition Subsidiary to perform its obligations under this Agreement. 

ARTICLE 6 

ADDITIONAL COVENANTS 

6.1 Certain Filings. The Company and Parent shall cooperate with one another (i) in determining whether any action by or in
respect of, or filing with, any Government is required or advisable, or any actions, consents, approvals or waivers are required to be obtained from parties to any material Contracts, in connection with the consummation of the transactions
contemplated by this Agreement and (ii) in taking such actions or making any such filings, furnishing information required in connection therewith and seeking timely to obtain any such actions, consents, approvals or waivers. 

 

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 6.2 Public Announcements; Confidentiality. Prior to the Effective Time, Parent
and the Company shall consult with each other before issuing any press release, making any statement or communication (other than Company statements or communications relating to an Adverse Recommendation Change or the transactions contemplated
hereby made after an Adverse Recommendation Change pursuant to and in accordance with Sections 4.7(b) and 4.7(c) hereof) to any Third Party (other than their respective Agents, including legal counsel, tax advisors and accountants) or
scheduling any press conference or conference call with investors or analysts with respect to this Agreement or the transactions contemplated hereby, including, if applicable, its termination and the reasons therefor, and, except as may be required
by applicable Law or any listing agreement with or rule of any national securities exchange or association, no Party shall issue any such press release, make any such statement or communication or schedule any such press conference or conference
call without the consent of the other Party. Notwithstanding anything herein to the contrary, following the Closing, the Representative shall be permitted to publicly announce that it has been engaged to serve as the Representative in connection
with the Merger as long as such announcement does not disclose any of the other terms of the Merger or the other transactions contemplated herein. 

6.3 Further Assurances. From and after the Closing, the Parties shall do such acts and execute such documents and instruments as
may be reasonably required to make effective the transactions contemplated hereby. 
 6.4 Taxes. 

(a) All transfer, documentary, sales, use, stamp, registration and other such Taxes and all conveyance fees, recording charges and other
fees and charges (including any penalties and interest) incurred by the Company in connection with consummation of the Merger or the payment of the Merger Consideration contemplated by this Agreement shall be paid by the Securityholders when due,
regardless of whether such Taxes are technically owed by the Company, Surviving Company or Parent. Parent will, at the Securityholders’ cost and expense, file all necessary Tax Returns and other documentation with respect to all such Taxes,
fees and charges. 
 (b) The Company shall prepare or cause to be prepared, and file or cause to be filed, at the Company’s
cost and expense, all Tax Returns of the Company required to be filed (taking into account extensions) on or before the Closing Date. Parent shall prepare or cause to be prepared, and file or cause to be filed, at the Securityholders’ cost
and expense, all other Tax Returns of the Company for any Tax year or period ending on or before the Closing Date (“Pre-Closing Tax Period”) that are filed after the Closing Date. If the Company’s Tax liability with
respect to such Tax Returns exceeds the amount of Taxes reflected in the Final Closing Net Working Capital or could result in a claim for indemnification pursuant to this Agreement, Parent shall provide the Representative with a copy of such Tax
Returns for review and approval (which will not be unreasonably withheld). The Representative shall be entitled to review all such Tax Returns prior to filing, and may request revisions to such Income Tax Returns so long as any requested
revisions are provided to Parent no later than ten (10) Business Days after the date on which the Representative receives a copy of such Tax Return from Parent. Parent and the Representative shall attempt to resolve, in good faith, any
disagreements as to the treatment of any item on any such Income Tax Return. Such Tax Returns shall be prepared in a manner consistent with the prior practices of the Company, which shall be in accordance with applicable Law. 

 

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 (c) Parent shall prepare or cause to be prepared, and file or cause to be filed, at
Parent’s cost and expense, all Tax Returns of the Company, the Surviving Company and their Subsidiaries for any Tax year or period beginning on or before and ending after the Closing Date (a “Straddle Period”). If the
Company’s Tax liability with respect to such Tax Returns attributable to the portion of the Straddle Period ending on the Closing Date exceeds the amount of Taxes reflected in the Final Closing Net Working Capital or could result in a claim for
indemnification pursuant to this Agreement, Parent shall provide the Representative with a copy of such Income or other material Tax Returns for review and reasonable approval. The Representative shall be entitled to review all such Income or
other material Tax Returns prior to filing and may request revisions to any such Income or other material Tax Return, so long as any requested revisions are provided to Parent no later than ten (10) Business Days after the date on which the
Representative received a copy of such Income or other material Tax Return from Parent. Parent and the Representative shall attempt to resolve, in good faith, any disagreements as to the treatment of any item on any Income or other material Tax
Return for a Straddle Period. For purposes of Section 6.4(c), Section 6.4(e) and Section 8.2(a)(x), in the case of any Taxes that are payable for a Tax period that includes (but does not end on) the Closing Date,
the portion of such Tax that relates to the portion of such Tax period ending on the Closing Date shall (i) in the case of any Taxes other than any Tax imposed upon or measured by net income or gross income (excluding any Tax based solely on
gross receipts) including any interest, penalty, or additions thereto, whether disputed or not (“Income Taxes”), be deemed to be the amount of such Tax for the entire Tax period multiplied by a fraction, the numerator of which is
the number of days in the Tax period ending on the Closing Date, and the denominator of which is the number of days in the entire Tax period, and (ii) in the case of any Income Tax, be deemed to be equal to the amount that would be payable if
the relevant Tax period ended on the Closing Date. Any credits relating to a Tax period that begins before and ends after the Closing Date shall be taken into account as though the relevant Tax period ended on the Closing Date. All determinations
necessary to give effect to the allocations described in this Section 6.4(c) shall be made in a manner consistent with the prior practice of the Company or the appropriate Subsidiary of the Company, except for changes required by Law or
fact. Such Tax Returns shall be prepared in a manner consistent with the prior practices of the Company, which shall be in accordance with applicable Law. 

(d) The Representative and Parent agree to furnish or cause to be furnished to each other, upon reasonable request, as promptly as
practical, such information (including reasonable electronic access to books and records, Tax Returns and Tax filings) and assistance as is reasonably necessary for the review or filing of any Tax Return, the conduct of any Tax audit, and for the
prosecution or defense of any claim, suit or proceeding relating to any Tax matter. The Representative and Parent shall cooperate with each other in the conduct of any Tax audit or other Tax proceedings and each shall execute and deliver such powers
of attorney and other documents as are reasonably necessary to carry out the intent of this Section 6.4. Any Tax audit or other Tax proceeding shall be deemed to be a Third Person Claim subject to the procedures set forth in
Section 8.5 of this Agreement.
  

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 (e) Parent shall be entitled to retain any Tax refund received; provided, however, that
Parent shall pay over to the Securityholders any Tax refund received that is both (i) attributable to an overpayment of Taxes paid solely with respect to a Pre-Closing Tax Period or a Straddle Period in the proportion allocated to the
Securityholders under Section 6.4(c) and (ii) not reflected as an asset in the Final Closing Net Working Capital. Parent shall pay any such refund within ten (10) Business Days after receipt to the accounts designated by
each Securityholders in its respective Letters of Transmittal, or deliver to each Securityholder to the address set forth in its respective Letter of Transmittal, such Securityholder’s allocable portion of such refunds or credits in accordance
with the allocations set forth in the Spreadsheet. For the avoidance of doubt, any reduction in Taxes, whether by way of refund or otherwise, attributable to the utilization of any Tax Attribute in a Taxable period commencing after the Closing Date
shall be solely for the benefit of Parent. For purposes of this Section 6.4, if the Tax, if any, paid by the Company to the California Board of Equalization with respect to the California State Sales and Use Tax audit for
the period of July 2005 through June 2008 (the “California Audit”) is less than $190,795.29, then Parent shall pay such difference to the Representative within ten (10) Business Days after the Company provides written notice to
Parent (with a copy to the Representative) of the final resolution of the California Audit, which notice shall be given reasonably promptly after such resolution. 

(f) Except where an amendment is required by a Tax authority, Parent shall not, and shall not permit its Affiliates to, file any amended
Tax Return for the Company for any Pre-Closing Tax Period or any Straddle Period if such amendment would cause the Company an increase in its Tax liability without the written consent of the Representative. 

(g) Pursuant to Treasury Regulation section 1.897-2(h) and Treas. Reg. Sec. 1.1445-2(c)(3)(i), at the Closing the Company shall furnish
to Parent the Statement. 
 (h) If Parent and the Representative cannot agree on the treatment of any items reflected on a draft
of a Tax Return of the Company that is subject to review pursuant to Section 6.4(b) or 6.4(c), such disputed items shall be resolved by the Auditor in accordance with Section 1.10(c)(ii). Parent and the Securityholders
shall split equally the fees and expenses of such Auditor. If a Tax Return is required by applicable Law to be filed or a payment made before the Auditor has resolved the disputed items (taking into account valid extensions of time within which to
file, which shall be sought to the extent necessary to permit the resolution of disputed items), the Tax Return shall be filed or payment made as determined by Parent, and shall be amended if necessary to reflect the determination of the Auditor
with respect to the disputed items. 
 (i) The Company and the Securityholders (through the Representative) shall assist and
cooperate with Parent, at Parent’s expense, in the preparation of its analysis under Section 382 of the Code for purposes of determining the limitation, reduction, or diminution in value of any of the Company’s Tax Attributes. Such
assistance shall include, upon Parent’s reasonable request, using commercially reasonable efforts to furnish or cause to be furnished, to the extent reasonably available, such information (including reasonable access to books and records and
affidavits with respect to changes of ownership of the Securityholders (which shall not, for the avoidance of doubt, include the identities of any of the Securityholders’ members, limited partners or stockholders)) and assistance as is
reasonably necessary to prepare such analysis. 
  

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 6.5 Information Statement. 

(a) As promptly as reasonably practicable following the date of this Agreement, Parent and the Company shall prepare and the Company
shall initiate delivery of the Information Statement. The Parties shall use their respective reasonable best efforts to complete and initiate delivery of the Information Statement no later than twenty-one (21) days after the date hereof. In no
event shall the Company provide the Information Statement to the Shareholders without the prior written consent of Parent. The Information Statement shall constitute a disclosure document for the offer and issuance of the shares of Parent Common
Stock to be issued in accordance with this Agreement and an information statement in connection with the solicitation of: (i) the Company Shareholder Approval; and (ii) waivers by the Shareholders of their appraisal rights in connection
with the Merger. 
 (b) If at any time prior to the Effective Time there shall occur any event that is required to be set forth
in an amendment or supplement to the Information Statement, the Company, Parent and Acquisition Subsidiary shall cooperate in describing such event and delivering any such amendment or supplement to all Securityholders. 

(c) Parent shall use commercially reasonable efforts to cause the issuance of Parent Common Stock in the Merger to be exempt from the
registration requirements of the Securities Act by reason of Regulation D promulgated under Section 4(2) of the Securities Act or under Section 4(2) of the Securities Act and from the registration requirements of any applicable state
securities Laws and otherwise to comply with all requirements of applicable federal and state securities Laws. The Company agrees to cooperate fully with Parent to meet the requirements for applicable exemptions from registration and agrees to use
commercially reasonable efforts to provide to Parent any information relating to the Company in connection therewith. 
 (d)
Parent agrees promptly to advise the Company if, at any time prior to the Closing, to Parent’s knowledge any information relating to Parent or Acquisition Subsidiary in the Information Statement is or becomes incorrect or incomplete in any
material respect. The Company agrees promptly to advise the Parent if, at any time prior to the Closing, to the Company’s Knowledge, any information relating to the Company in the Information Statement is or becomes incorrect or incomplete in
any material respect. Such notifying party will take such steps as may be necessary in order to cause the Information Statement, insofar as it relates to such party (or any of its Subsidiaries), to continue to comply in all material respects with
the applicable provisions of the Securities Act after the delivery thereof to the Securityholders. 
 6.6 Company Employee
Carve-Out Plan; Parent Inducement Plan. 
 (a) As soon as practicable following the Effective Time, Parent will deliver (or
cause to be delivered) to the Company an aggregate amount of cash equal to $2,442,000 for distribution under the Company’s Management Carveout Plan attached hereto as Exhibit L (the “Management Carveout Plan”). Promptly
following the receipt of such funds, the Company will distribute such funds to the beneficiaries under the Management Carveout Plan in accordance with Exhibit L. 

 

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 (b) At or promptly following the Closing, Parent agrees to issue shares of restricted
stock units of Parent as inducement grants (the “Employee Inducement Grants”) pursuant to Parent’s 2001 Equity Incentive Plan, as amended and restated (the “Inducement Grant Plan”), and such Employee Inducement
Grants shall be issued pursuant to the Inducement Grant Plan to those employees listed on Schedule 6.6(b) in the amounts and subject to the vesting schedule set forth next to each such employee’s name, which Grants shall be made pursuant
to inducement grant agreements in substantially the form attached hereto as Exhibit M. 
 6.7 New Investment
Adjustment Amount; Post-Execution Investment Amount Payoff; Certain Payoff Letters. The Parties acknowledge and agree that the payment of the portion of the Initial Merger Consideration payable as the New Investment Adjustment Amount shall be
deemed to have extinguished all of the New Investment Adjustment Amount, without any further payment directly to the holders of the instruments or agreements evidencing or reflecting such New Investment Adjustment Amount. In addition, at or prior to
the Closing Date, the Company shall deliver to Parent (i) fully executed payoff statements, in a form reasonably acceptable to Parent, from the appropriate Persons (A) relating to all items of the Indebtedness that are contemplated to be
paid off at or in connection with the Closing and (B) with respect to all Post-Execution Investment Amounts and (ii) if requested by Parent, written agreements, in a form reasonably acceptable to Parent, evidencing the termination and
cancellation of all obligations of the Company under or pursuant to the instruments or agreements evidencing or reflecting any New Investment Adjustment Amount and/or Post-Execution Investment Amount. The Company hereby agrees that it will not
accept any Post-Execution Investment Amount from any Securityholder unless such Securityholder simultaneously signs a Side Agreement or an amendment to an existing Side Agreement in the same form executed by those Securityholders listed on
Schedule 4.7(a). At the Closing, provided that a true, correct and complete payoff letter with respect to any Post-Execution Investment Amounts has been timely delivered to Parent, Parent shall pay the amount of such Post-Execution Investment
Amount (which shall not include any accrued interest; it being understood that all such accrued interest, if any, shall be cancelled without payment therefor) in accordance with the terms of the applicable payoff letter. 

ARTICLE 7 

CONDITIONS PRECEDENT 

7.1 Conditions to Each Party’s Obligations. The respective obligations of each party to proceed with the Closing shall be
subject to the fulfillment at or prior to the Effective Time of the following conditions: 
 (a) No Injunction or Action.
No order, statute, rule, regulation, executive order, stay, decree, investigation, judgment or injunction shall have been enacted, entered, promulgated or enforced by any court or other Government, which prohibits or prevents the consummation of the
Merger and which has not been vacated, dismissed or withdrawn by the Effective Time. The Company and Parent shall use their reasonable best efforts to have any of the foregoing vacated, dismissed or withdrawn by the Effective Time. 

 

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 (b) Company Shareholder Approval. The Company shall have received the Company
Shareholder Approval. 
 (c) HSR Act. Any waiting period applicable to the Merger under the HSR Act, as amended, shall
have expired or earlier termination thereof shall have been granted and no action shall have been instituted by either the United States Department of Justice or the Federal Trade Commission or any action by a state attorney general to prevent the
consummation of the transactions contemplated by this Agreement or to modify or amend such transactions in any material manner, or if any such action shall have been instituted, it shall have been withdrawn or a final judgment shall have been
entered against such Department, Commission or Attorney General, as the case may be. 
 7.2 Conditions to Obligations of the
Company. The obligation of the Company to proceed with the Closing shall be subject to the fulfillment at or prior to the Effective Time of the following additional conditions, any one or more of which may be waived by the Company: 

(a) Performance of Obligations; Representations and Warranties. (i) Parent shall have performed in all material respects each
of its agreements contained in this Agreement and the Indemnification Escrow Agreement required to be performed at or prior to the Closing; (ii) each of the representations and warranties of Parent contained in this Agreement that is not
qualified by materiality, material adverse effect or similar variation thereof shall be true and correct in all material respects on and as of the Closing Date as if made on and as of such date (other than any such representations and warranties
which address matters only as of a certain date, which shall be true and correct in all material respects as of such certain date) (iii) each of the representations and warranties of Parent contained in this Agreement that are qualified by
materiality, material adverse effect or any variation thereof shall be true and correct in all respects on and as of the Closing Date as if made on and as of such date (other than any such representations and warranties which address matters only as
of a certain date, which shall be true and correct in all respects as of such certain date), and (iv) the Company shall have received a certificate, dated as of the Closing Date, signed on behalf of Parent by a duly authorized officer of
Parent, to such effect. For purposes of determining the accuracy of representations and warranties of Parent set forth in this Agreement for purposes of this Section 7.2(a), any update of or modification to the disclosure schedules of
Parent made or purported to have been made after the date hereof (or any information provided by Parent under Section 5.1 or otherwise) shall be disregarded. 
  

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 7.3 Conditions to Obligations of Parent and Acquisition Subsidiary. The
obligations of Parent and Acquisition Subsidiary to proceed with the Closing shall be subject to the fulfillment at or prior to the Effective Time of the following additional conditions, any one or more of which may be waived by Parent: 

(a) Performance of Obligations; Representations and Warranties (i) The Company shall have performed in all material respects
each of its agreements contained in this Agreement and the Indemnification Escrow Agreement required to be performed at or prior to the Closing; (ii) each of the representations and warranties of the Company contained in this Agreement that is
not qualified by materiality, material adverse effect or similar variation thereof shall be true and correct in all material respects on and as of the Closing Date as if made on and as of such date (other than any such representations and warranties
which address matters only as of a certain date which shall be true and correct in all material respects as of such certain date) and (iii) each of the representations and warranties of the Company contained in this Agreement that are qualified
by materiality, material adverse effect or any variation thereof shall be true and correct in all respects on and as of the Closing Date as if made on and as of such date (other than any such representations and warranties which address matters only
as of a certain date, which shall be true and correct in all respects as of such certain date), and (iv) Parent shall have received a certificate, dated as of the Closing Date signed on behalf of the Company by a duly authorized officer, to
such effect. For purposes of determining the accuracy of representations and warranties of the Company set forth in this Agreement for purposes of this Section 7.3(a), any update of or modification to the disclosure schedules of the
Company made or purported to have been made after the date hereof (or any information provided by the Company under Section 4.2 hereof or otherwise) shall be disregarded. 

(b) Performance of Obligations; Representations and Warranties Contained in the Side Agreements. (i) Each of the Shareholders
that is a party to a Side Agreement as of the date hereof shall have performed in all material respects each of its agreements contained in the Side Agreements required to be performed on or prior to the Closing Date; (ii) each of the
representations and warranties of each Shareholder that is a party to a Side Agreement as of the date hereof contained in such Side Agreements that is not qualified by materiality, material adverse effect or similar variation thereof shall be true
and correct in all material respects on and as of the Closing Date as if made on and as of such date (other than any such representations and warranties which address matters only as of a certain date, which shall be true and correct in all material
respects as of such certain date) (iii) each of the representations and warranties of each Shareholder that is a party to a Side Agreement contained in such Side Agreements that are qualified by materiality, material adverse effect or any
variation thereof shall be true and correct in all respects on and as of the Closing Date as if made on and as of such date (other than any such representations and warranties which address matters only as of a certain date, which shall be true and
correct in all material respects as of such certain date). For purposes of determining the accuracy of representations and warranties of any Shareholder set forth in this a Side Agreement for purposes of this Section 7.3(b), any update
of or modification to the disclosure schedules of Shareholders made or purported to have been made after the date hereof (or any information provided by any Shareholder under a Side Agreement or otherwise) shall be disregarded. 

(c) No Material Adverse Change. Since the date of this Agreement, there shall not have occurred and be continuing any Company
Material Adverse Change, and Parent shall have received a certificate, dated as of the Closing Date, signed on behalf of the Company by the Chief Executive Officer and Chief Financial Officer of the Company, to such effect. 

 

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 (d) No Pending Action. There shall not be instituted, pending or threatened any
action, investigation or proceeding by any Government, and there shall not be instituted, pending or threatened any action or proceeding by any other person, domestic or foreign, before any Government, (A) challenging or seeking to make
illegal, or otherwise, directly or indirectly, to restrain or prohibit the consummation of the Merger, seeking to obtain material damages or imposing any material adverse conditions in connection therewith or otherwise, directly or indirectly
relating to the transactions contemplated by the Merger, (B) seeking to restrain, prohibit or delay the exercise of full rights of ownership or operation by Parent or Acquisition Subsidiary or their Affiliates of all or any portion of the
business or assets of the Company or of Parent or Acquisition Subsidiary or any of their Affiliates, or to compel Parent or Acquisition Subsidiary or any of their Affiliates to dispose of or hold separate all or any material portion of the business
or assets of the Company or of Parent or Acquisition Subsidiary or any of their Affiliates, (C) seeking to impose or confirm material limitations on the ability of Parent or Acquisition Subsidiary or any of their Affiliates to exercise full
rights of the ownership of the equity interests of the Company, including, without limitation, the right to vote the Shares of the Company acquired or owned by Parent or Acquisition Subsidiary or any of their Affiliates on all matters properly
presented to the holders of such equity interests, (D) seeking to require divestiture by Parent or Acquisition Subsidiary or any of their Affiliates of the equity interests of the Company or any assets of the Company, or (E) that otherwise
would reasonably be expected to have a Company Material Adverse Effect. 
 (e) Appraisal Rights. The Company shall not
have received notice of demand for appraisal of Shares from the Securityholders entitled to receive more than five percent (5%) of the Initial Merger Consideration. 

(f) Key Personnel. (i) None of the individuals listed on Schedule 2.22(g), has resigned or retired from the Company or
has provided written or express notice to the CEO, CFO or VP – Product Engineering that he or she has a current intent to resign or retire as a result of the transactions contemplated by this Agreement or otherwise within one year after the
Closing Date, and Parent shall have received a certificate dated the Closing Date, signed on behalf of the Company by an authorized officer of the Company, to such effect and (ii) no more than 20% of those individuals listed on Schedule
7.3(f) have resigned or retired from the Company or have provided written or express notice to the CEO, CFO or VP – Product Engineering that he or she has a current intent to resign or retire as a result of the transactions contemplated by
this Agreement or otherwise within one year after the Closing Date, and Parent shall have received a certificate dated the Closing Date, signed on behalf of the Company by an authorized officer of the Company, to such effect. 

(g) Private Placement. Parent shall be reasonably satisfied that the offer and issuance of Parent Common Stock as Earnout
Consideration hereunder will be considered a valid private placement under Regulation D promulgated under the Securities Act or under Section 4(2) of the Securities Act and is otherwise exempt from registration requirements under or pursuant to
all applicable federal and/or state securities Laws. 
  

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 (h) Deliveries. Parent shall have received the following: 

(i) a final invoice from each of Wilson Sonsini Goodrich & Rosati and UBS certifying that it has received all
payments due to it from the Company, including the payment required to be paid to it as Estimated Transaction Expenses pursuant to Section 1.12(b) hereof, and that payment of such amounts is in full satisfaction of all amounts owed to it
by the Company or the Securityholders (in their respective capacities as such); 
 (ii) a statement, under
penalties of perjury, certifying that the Company is not, and has never been during the applicable period specified in Section 897(c)(1)(A)(ii) of the Code, a United States real property holding corporation within the meaning of
Section 897(c)(2) of the Code (the “Statement”), and authorization for Parent to mail the Statement to the United States Internal Revenue Service (“IRS”); 

(iii) a certificate of good standing, or equivalent certificate, for the Company dated within five Business Days of the
Closing Date, issued by the appropriate Government; 
 (iv) a copy, certified by the Secretary of the Company to
be true, complete and correct as of the Closing Date, of the organizational documents of the Company, and resolutions of the Shareholders and Board of Directors of the Company, authorizing and approving the transactions contemplated hereby;

 (v) the Indemnification Escrow Agreement, duly executed by the Representative; 

(vi) the Representative Expense Escrow Agreement, duly executed by the Representative 

(vii) the Agreement of Merger and related officers’ certificate, duly executed by the Company; 

(viii) all consents and approvals required to be obtained from those third parties under Contracts described on
Schedule 7.3(h)(viii) hereto; 
 (ix) the Spreadsheet contemplated by Section 1.9(a), in form
and substance reasonably acceptable to Parent; 
 (x) evidence satisfactory to Parent of the termination and/or
cancellation of all debt or equity investments included in the New Investment Adjustment Amount and any notes or other evidence of indebtedness related thereto upon the payment by Parent of the Initial Merger Consideration in the manner contemplated
by this Agreement; 
 (xi) evidence satisfactory to Parent that all of the agreements listed on Schedule
7.3(h)(xi) have been validly terminated prior to Closing in accordance with their respective terms without any further liability or obligation to the Company; and 

 

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 (xii) payoff statements from the appropriate Persons relating to all
items of the Indebtedness or Post-Execution Investment Amounts that are contemplated to be paid off at or in connection with the Closing. 

ARTICLE 8 

INDEMNIFICATION 

8.1 Survival of Representations and Warranties and Covenants. 

(a) The representations and warranties of the Company made herein (and the right to make indemnification claims in respect thereof
pursuant hereto) shall survive the Closing and continue in effect until the eighteen (18) month anniversary of the Closing Date; provided, however, that (i) the representations and warranties set forth in Sections 2.3
(Capitalization and Related Matters), 2.4 (Authorization; Enforceability; Noncontravention), 2.9(a) (Title) (except to the extent the same relates to title to Intellectual Property) and 2.35 (Brokers, Finders) (collectively, the
“Company Fundamental Representations”), (and the right to make indemnification claims in respect thereof pursuant hereto) shall survive in perpetuity and (ii) the representations and warranties set forth in
Section 2.8 (Taxes) shall survive the Closing and continue in effect until thirty (30) days after the expiration of all applicable statutes of limitations with respect to the matters addressed therein (including any extensions or
tollings thereof). 
 (b) The representations and warranties of Parent and Acquisition Subsidiary made herein (and the right to
make indemnification claims in respect thereof pursuant hereto) shall survive the Closing and continue in effect until the eighteen (18) month anniversary of the Closing Date; provided, however, the representations and warranties set forth in
Sections 3.1 (Organization; Authorization; No Conflicts), 3.2 (Capitalization) and 3.5 (Brokers; Finders) (collectively, the “Parent Fundamental Representations”) (and the right to make indemnification claims in
respect thereof pursuant hereto) shall survive in perpetuity. 
 (c) The covenants made by the Parties herein shall survive in
accordance with their respective terms, and if no specific term is specified, in perpetuity. 
 (d) It is the express intent of
the parties that, if the applicable survival period for an item as contemplated by this Section 8.1 is shorter than the statute of limitations that would otherwise have been applicable to such item, then, by contract, the applicable statute
of limitations with respect to such item shall be reduced to the shortened survival period contemplated hereby. The parties further acknowledge that the time periods set forth in this Section 8.1 for the assertion of claims under this
Agreement are the result of arms-length negotiation among the parties and that they intend for the time periods to be enforced as agreed by the parties. Notwithstanding the foregoing or anything contained herein to the contrary, this
Section 8.1(d) shall not apply to limit any statute of limitations in instances of fraud (it being expressly understood that the Parties do not intend to shorten or otherwise impact any statute of limitations applicable thereto).

  

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 (e) Any claims under this Agreement with respect to a breach of a representation and
warranty or covenant must be asserted by written notice within the applicable survival period contemplated by this Section 8.1, and if such a notice is given, the survival period for such claim shall continue until such claim is fully
resolved. 
 8.2 Indemnification of Parent Indemnified Persons. 

(a) If the Closing occurs, subject to the limitations contained in this Article 8, the Securityholders as of immediately prior to
the Effective Time shall severally and not jointly indemnify and hold harmless Parent, the Surviving Company, the Company and any of their Affiliates (to the extent the same are Affiliates from and after the Effective Time) and the shareholders,
directors, officers, employees, successors, assigns, representatives and agents of each of them in their capacities as such at any time after the Effective Time (the “Parent Indemnified Persons”) from and against any and all losses,
judgments, orders, damages, liabilities, expenses or costs (“Losses”) (including all reasonable attorneys’ fees and expenses incurred in connection with Losses and/or enforcement of this Agreement) (in all, “Indemnified
Losses”) incurred by any of them, whether before or after the Effective Time, resulting from or arising out of: 

(i) any breach, as of the date of this Agreement or as of the Closing Date, of any representation or warranty made by the
Company in this Agreement (other than the Company Fundamental Representations), as if the same were made on and as of each of such dates (and disregarding and not giving any effect whatsoever any information, notification or certificates that may
have been given to Parent after the date of this Agreement and prior to or at the Closing, including under or pursuant to Sections 4.2 or 7.3); 

(ii) any breach, as of the date of this Agreement or as of the Closing Date, of the Company Fundamental Representations,
as if the same were made on and as of each of such dates (and disregarding and not giving any effect whatsoever any information, notification or certificates that may have been given to Parent after the date of this Agreement and prior to or at the
Closing, including under or pursuant to Sections 4.2 or 7.3); 
 (iii) any breach or violation by
the Company of, or default in performance by the Company under, any covenant or agreement contained in this Agreement to be performed or complied with by the Company prior to the Effective Time or any breach or violation by Representative of, or
default in performance by Representative under, any covenant or agreement contained in this Agreement or the Indemnification Escrow Agreement; 

(iv) Indebtedness of the Company immediately prior to the Closing, but only to the extent not reflected on the Closing
Statement of Indebtedness or not taken into account in determining the Initial Merger Consideration; 
 (v) the
Transaction Expenses, but only to the extent not taken into account in determining the Initial Merger Consideration; 
  

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 (vi) any claims for appraisal or dissenters’ rights with respect to
shares of capital stock of the Company under California Law or any other applicable Law, but only to the extent resulting in aggregate Losses that exceed the value of the Merger Consideration that would have been payable and issuable under this
Agreement in the absence of such appraisal or dissenters’ claims; 
 (vii) any Securityholder Claim other
than any such claim for appraisal or dissenters’ rights with respect to shares of capital stock of the Company under California Law or any other applicable Law; 

(viii) the Engagement Letter between the Company and UBS Securities LLC, dated May 14, 2010, including the indemnity
obligation of the Company contained therein; 
 (ix) the matters set forth on Schedule 8.2(a)(ix) (the
“Scheduled Indemnity Matters”); or 
 (x) Any Taxes imposed on the Company or its assets, or
Indemnified Losses payable with respect to Taxes claimed or assessed against the Company (A) for any Tax period (or portion thereof) ending on or before the Closing Date or as a result of the transactions contemplated hereby (except
(1) for any Taxes that are included in Indebtedness; or (2) to the extent and in such amount as such Taxes are reflected, by way of a specific reserve for Taxes, in the Final Closing Net Working Capital); (B) for any Tax period
resulting from a breach of any of the representations or warranties contained in Sections 2.8 hereof; or C) for a Tax period of the Company or any Subsidiary of the Company ending after the Closing Date arising out of the settlement or other
resolution of a proposed Tax adjustment that relates to a Tax period ending on or before the Closing Date (other than the adjustment of the amount or availability of a Tax Attribute). Except to the extent arising from a breach of any of the
representations or warranties in Section 2.8(n) hereof, no Loss relating to or arising from the amount, value or condition of any Tax Attribute of the Company (including, for the avoidance of doubt, the Department of Energy tax credits),
or the ability of Parent or any of its Affiliates (including the Company and the Surviving Corporation) to utilize any such Tax Attribute following the Effective Time shall be subject to a claim by any Parent Indemnified Person for recovery
hereunder. 
 (b) For the avoidance of doubt, the approval of this Agreement and the Agreement of Merger by the Shareholders
and/or the cancellation of Company Options and Company Warrants in exchange for Merger Consideration pursuant to this Agreement, the consummation of the Merger or participating in the Merger and receiving the benefits thereof, including the right to
receive the consideration payable in connection with the Merger, constitutes approval of the provisions of this Agreement (and in particular, this Article 8 and the indemnification obligations contained herein) by the Securityholders. From
and after the Closing, the Parent Indemnified Parties shall be entitled to recover any Indemnified Losses to which they are entitled hereunder from the Indemnification Escrow Account, by exercising the set-off rights described herein and/or by
enforcing Parent’s rights under the terms of any Side Agreements or otherwise as permitted by applicable Law; provided, however, that in the event that the Parent Indemnified Persons are entitled to recover any Indemnified Losses hereunder,
(i) the Parent Indemnified Persons shall first recover such Indemnified Losses from the Indemnification Escrow Fund, if and to the extent available at the time a Parent Indemnified Party’s right to such recovery is finally determined,
(ii) the Parent Indemnified Persons shall then recover such Indemnified Losses by exercising set-off rights against the Earnout Consideration if and to the extent available and determinable at the time a Parent Indemnified Person’s right
to such recovery is finally determined (and if the Earnout Consideration is not then available or determinable, it is understood that the Parent Indemnified Persons may recover as described in (iii) below), and (iii) the Parent Indemnified
Persons shall then recover such Indemnified Losses directly against Securityholders under the Side Agreements or otherwise as permitted by applicable Law. 
  

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 (c) For all Tax purposes, all indemnification payments under this Article 8 shall
be treated by the Parties as adjustments to the Cash Merger Consideration to the extent permitted by applicable law. 
 8.3
Indemnification of the Securityholders. If the Closing occurs, subject to the limitations contained in this Article 8, Parent shall hold the Securityholders, and the members, directors, officers, employees, successors, assigns,
representatives and agents of each of them in their capacities as such (the “Shareholder Indemnified Persons”) harmless and indemnify each of them from and against any and all Indemnified Losses incurred or to be incurred by any of
them, resulting from or arising out of: 
 (a) any breach, as of the date of this Agreement or as of the Closing Date, of any
representation or warranty made by Parent in this Agreement, as if the same were made on and as of each of such dates (and disregarding and not giving any effect whatsoever any information, notification or certificates that may have been given to
the Company after the date of this Agreement and prior to or at the Closing, including under or pursuant to Sections 5.1 or 7.2); 

(b) any breach, as of the date of this Agreement or as of the Closing Date, of the Parent Fundamental Representations, as if the same
were made on and as of each of such dates (and disregarding and not giving any effect whatsoever any information, notification or certificates that may have been given to the Company after the date of this Agreement and prior to or at the Closing,
including under or pursuant to Sections 5.1 or 7.2); or 
 (c) any breach or violation by Parent of, or default in
performance by Parent under, any covenant or agreement contained in this Agreement or the Indemnification Escrow Agreement. 
  

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 8.4 Notice of Claim. In the event that Parent has incurred an Indemnified Loss or
reasonably anticipates incurring an Indemnified Loss and desires to seek indemnification with respect thereto on behalf of a Parent Indemnified Person, or the Representative or a Securityholder has incurred an Indemnified Loss or reasonably
anticipates incurring an Indemnified Loss and desires to seek indemnification with respect thereto on behalf of a Shareholder Indemnified Person, such Party seeking indemnification (the “Indemnified Party”) shall give reasonably
prompt written notice in accordance with Section 10.1 to the Representative (if and to the extent that such claim may be satisfied from the Indemnification Escrow Fund) or any other indemnifying party (the “Indemnifying
Party”) specifying the facts constituting the basis for such claim and the amount, to the extent known, of the claim asserted; provided, however, that the right of a Person to be indemnified hereunder shall not be adversely affected by a
failure to give such notice unless, and then only to the extent that, an Indemnifying Party is materially prejudiced thereby. In the event that Parent determines in good faith that a Parent Indemnified Person is reasonably likely to incur
Indemnified Losses for which a Parent Indemnified Person is entitled to indemnification hereunder, or a Shareholder determines in good faith that such Shareholder is reasonably likely to incur Indemnified Losses for which such Shareholder
Indemnified Person is entitled to indemnification hereunder, a Parent Indemnified Person or Shareholder Indemnified Persons, as the case may be, shall be entitled to submit a claim for indemnification for reasonably anticipated Indemnified Losses in
advance of the actual incurrence by any such Persons of the same, whether to preserve such Person’s rights to assert a claim prior to the expiration of an applicable survival period with regard to the underlying matter, to preserve such
Person’s set-off rights or rights in the Indemnification Escrow Agreement or otherwise, but no such Person shall be entitled to actually collect indemnification in respect of such claim unless and until any such reasonably anticipated
Indemnified Losses are actually incurred (whether before or after any applicable survival period) by a Parent Indemnified Person or Shareholder Indemnified Person, as the case may be. 

8.5 Right to Contest Claims of Third Persons. 

(a) If an Indemnified Party is entitled to indemnification hereunder because of a claim asserted by any claimant other than an
Indemnified Person hereunder (a “Third Person”), the Indemnified Party shall give the Indemnifying Party reasonably prompt notice thereof after such assertion is actually known to the Indemnified Party; provided, however, that the
right of a Person to be indemnified hereunder in respect of claims made by a Third Person shall not be adversely affected by a failure to give such notice unless, and then only to the extent that, an Indemnifying Party is materially prejudiced
thereby. Except as otherwise provided in this Section 8.5, the Indemnifying Party shall then have the right, upon written notice to the Indemnified Party (a “Defense Notice”) within fifteen (15) Business Days after
receipt from the Indemnified Party of notice of such claim, and using counsel reasonably satisfactory to the Indemnified Party, to investigate, contest, or settle the claim alleged by such Third Person (a “Third Person Claim”),
provided that the Indemnifying Party has unconditionally acknowledged to the Indemnified Party in writing its obligation to indemnify the Persons to be indemnified hereunder with respect to such Third Person Claim and to discharge any cost or
expense arising out of such investigation, contest or settlement. The Indemnified Party may thereafter participate in (but not control) the defense of any such Third Person Claim with its own counsel at its own expense, unless separate
representation is necessary to avoid a conflict of interest, in which case such representation shall be at the expense of the Indemnifying Party. Unless and until the Indemnifying Party so acknowledges its obligation to indemnify, the Indemnified
Party shall have the right, at its option, to assume and control defense of the matter and to look to the Indemnifying Party for the full amount of the reasonable costs of defense. In the event that the Indemnifying Party shall fail to give the
Defense Notice within said fifteen (15) Business Day period, (i) the Indemnified Party shall be entitled to have the control over said defense and settlement of the subject claim, (ii) the Indemnifying Party will cooperate with and
make available to the Indemnified Party such assistance and materials as it may reasonably request, and (iii) the Indemnifying Party shall have the right at its expense to participate in the defense assisted by counsel of its own choosing, and
the Indemnifying Party, if it is required to provide indemnification under this Agreement, will be liable for all costs and settlement amounts paid or incurred in connection therewith. 

 

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 (b) In the event that the Indemnifying Party delivers a Defense Notice with respect to
such Third Party Claim within fifteen (15) Business Days after receipt thereof and thereby elects to conduct the defense of the subject claim, (i) the Indemnifying Party shall be entitled to have control over said defense and, subject to
the provisions set forth below, settlement of the subject claim, (ii) the Indemnified Party will cooperate with and make available to the Indemnifying Party such assistance and materials as it may reasonably request, and (iii) the
Indemnified Party shall have the rights at its expense to participate in the defense assisted by counsel of its own choosing. In such an event, the Indemnifying Party will not settle the subject claim without the prior written consent of the
Indemnified Party, which consent will not be unreasonably withheld, conditioned or delayed unless (i) there is no finding or admission of any violation of Law or any violation of the rights of any Person; (ii) the sole relief provided is
monetary damages that are paid in full by the Indemnifying Party; and (iii) the Indemnified Party shall have no liability with respect to any compromise or settlement of such Third Person Claims effected without its consent, in which cases the
consent of the Indemnified Party shall not be required. 
 (c) Notwithstanding anything to the contrary contained in this
Section 8.5, the Indemnifying Party shall not be entitled to control, but may participate in, and the Indemnified Party shall be entitled to have sole control, including the right to select defense counsel, over the defense or settlement
of any claim (i) that seeks a temporary restraining order, a preliminary or permanent injunction or specific performance against the Indemnified Party, (ii) that involves criminal allegations against the Indemnified Party, (iii) that,
if unsuccessful, (A) would set a precedent that would materially interfere with, or have a material adverse effect on, the business or financial condition of the Indemnified Party or (B) would reasonably be expected to exceed the Parent
Cap or the Shareholders’ Cap, as applicable, in either case as mutually determined by the Indemnifying Party and the Indemnified Party or, if such a determination is not made within fifteen (15) Business Days after the date on which the
Indemnified Party responds to the Defense Notice by asserting its rights under this Section 8.5(c), in accordance with its reasonable judgment, or (iv) subject to clause (iii)(B) above, that imposes liability on the part of the
Indemnified Party for which the Indemnified Party is not entitled to indemnification hereunder. In such event, the Indemnifying Party will still be subject to its obligations hereunder but the Indemnified Party will not settle the subject claim
without the prior written consent of the Indemnifying Party, which consent will not be unreasonably withheld, conditioned or delayed. 
  

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 8.6 Limitations on Indemnity. 

(a) From and after the Closing, the Parent Indemnified Persons shall not be entitled to indemnification in respect of Indemnified Losses
pursuant to Section 8.2(a)(i) unless and until such Indemnified Losses exceed Five Hundred Thousand Dollars ($500,000.00) in the aggregate (the “Indemnification Threshold”), but then to the full extent of such
Indemnified Losses (including the first $500,000) of such Indemnified Losses); provided, however, the Indemnification Threshold limitation shall not apply in any manner whatsoever to the extent the breach results from fraud. 

(b) From and after the Closing, the Shareholder Indemnified Persons shall not be entitled to indemnification in respect of Indemnified
Losses pursuant to Section 8.3(a) unless and until such Indemnified Losses exceed the Indemnification Threshold, but then to the full extent of such Indemnified Losses (including the first $500,000) of such Indemnified Losses); provided,
however, the Indemnification Threshold limitation shall not apply in any manner whatsoever to the extent the breach results from fraud. 

(c) From and after the Closing, in the absence of fraud, the aggregate amount of Indemnified Losses that may be recovered by the Parent
Indemnified Persons under Section 8.2(a)(i) may not exceed an amount equal to the Indemnification Escrow Amount, plus Fifteen Percent (15%) of the aggregate dollar value of any Earnout Consideration paid or payable by Parent
pursuant to and in accordance with Section 1.13 hereof (as adjusted, the “General Cap”). From and after the Closing, in the absence of fraud, the sole source of recovery for indemnity claims by Parent Indemnified Persons
under Section 8.2(a)(i) shall be the available balance in the Indemnification Escrow Account and the right of Parent to offset against up to Fifteen Percent (15%) of the aggregate dollar value of any Earnout Consideration paid or
payable as provided in Section 8.6(k) unless and solely to the extent that the Parent Indemnified Persons have previously recovered amounts from the Indemnification Escrow Fund for any indemnification claims under Sections 8.2(a)(ii)
– 8.2(a)(x), in which event Parent shall be entitled to recover an equivalent amount directly from the Securityholders pursuant to their respective Side Agreements or otherwise as permitted by Law (subject to the General Cap). From and after
the Closing, in the absence of fraud, the aggregate amount of Indemnified Losses that may be recovered by the Parent Indemnified Persons under Section 8.2(a)(i) – 8.2(a)(x) against each Securityholder may not exceed an amount equal
to such Securityholder’s Percentage multiplied by the amount of each such indemnification claim (the “Individual Cap”) (it being understood and hereby agreed that if an indemnification claim by a Parent Indemnified Person is
payable from the Indemnification Escrow Fund, then the Parent Indemnified Persons shall be entitled to recover the full amount of such claim from the Indemnification Escrow Fund and each Securityholder shall contribute its respective
Securityholder’s Percentage to such claim from its interest in the Indemnification Escrow Fund). From and after the Closing, in the absence of fraud, the aggregate amount of Indemnified Losses that may be recovered by the Parent Indemnified
Persons under Section 8.2(a)(i) – 8.2(a)(x), inclusive, shall be an amount equal to the Merger Consideration (the “Aggregate Cap”). Notwithstanding the foregoing, neither the General Cap, the Individual Cap nor the
Aggregate Cap shall apply to the obligations of any Securityholder under this Article 8 to the extent such breach results from fraud by the Company or any such Securityholder prior to or at the Closing (it being understood and hereby agreed
that no Securityholder shall be directly liable to any Parent Indemnified Person for any liability (other than with respect to such Securityholders’ interest in the Indemnification Escrow or pursuant to rights of setoff against such
Securityholder’s interest in the Earnout Consideration) resulting from or arising out of any fraud committed by any other Securityholder (solely in its capacity as a Securityholder and not as an officer, director or employee of the Company),
whether under such Securityholders’ Side Agreement with Parent or otherwise under applicable Law; provided however, in the event of fraud by the Company prior to or at the Closing, the Aggregate Cap shall be applicable and Parent shall use its
commercially reasonably efforts to promptly seek full recovery of any such Loss from the Person or Persons responsible for such fraud, if and only if the same is reasonably determinable by Parent; provided, however, that the Parent Indemnified
Person (including Parent) shall have no obligation to first submit or to collect from the applicable Person(s) as a precondition to making a claim (whether for indemnification or otherwise) hereunder or obtaining indemnification or any other remedy
for Losses therefor, and the Parties hereto agree not to delay in any manner the payment to Parent or any Parent Indemnified Person of such indemnification or remedy based on Parent’s non-fulfillment of the foregoing obligation at the time any
such claim is made. To the extent that any amounts are actually recovered from the applicable Person(s) who committed the fraud by a Parent Indemnified Person after the related indemnification payment or other remedy has been made pursuant to this
Agreement by any Securityholder the Parent Indemnified Person will pay over to the Indemnification Escrow Agent (to the extent that (a) amounts have been paid to Parent out of the Indemnification Escrow Account and (b) the Indemnification
Escrow Agreement remains in effect) or to the Exchange Agent (or, if the Exchange Agent is no longer engaged, to the Parent) for distribution to the applicable Securityholders (in any other circumstance) any such amounts promptly after they are
actually recovered. 
  

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 (d) From and after the Closing, the aggregate amount of Indemnified Losses that may be
recovered by the Shareholder Indemnified Persons under Section 8.3(a) may not exceed an amount equal to the Indemnification Escrow Amount, subject to increase by Fifteen Percent (15%) of the aggregate dollar value of any Earnout
Consideration paid or payable by Parent in accordance with Section 1.13 hereof (the “Parent Cap”). Notwithstanding the first sentence of this Section 8.6(d), (A) the Parent Cap shall not apply to claims
for indemnification arising out of any of the Parent Fundamental Representations, and (B) the Parent Cap shall not apply to the obligations of Parent if and to the extent a breach results from fraud. In addition, from and after the Closing, the
aggregate amount of Indemnified Losses that may be recovered by the Shareholder Indemnified Persons with respect to any claim related to the earnout contemplated by Section 1.13 may not exceed an amount equal to Twenty-Seven Million Six
Hundred Forty-Two Thousand Dollars ($27,642,000.00). 
 (e) The Securityholders shall not have any claim for contribution from
or against the Company, the Surviving Corporation or any Subsidiary of the Company or the Surviving Company as a result of any indemnification or other payments made by (or on behalf of) any of the Securityholders to any of the Parent Indemnified
Persons pursuant to this Agreement, the Indemnification Escrow Agreement, the Side Agreement or any other agreement ancillary hereto. 

(f) Notwithstanding anything contained herein or elsewhere to the contrary, all “material” and “material adverse
effect” or similar materiality type qualifications contained in the representations and warranties set forth in this Agreement shall be given full effect for purposes of determining whether any such representations and warranties are inaccurate
or have been breached as of any particular time, but if and to the extent that a representation or warranty set forth herein has been determined to be inaccurate or breached, such materiality, material adverse effect and other similar materiality
type qualifications shall be ignored and not given any effect for purposes of determining whether the Indemnification Thresholds have been surpassed and/or determining the amount of any Indemnified Losses. 

 

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 (g) No information or knowledge acquired, or investigations conducted, by Parent or its
representatives, of the Company or otherwise, shall in any way limit, or constitute a waiver of, or a defense to, any claim for indemnification by Parent or any Parent Indemnified Person under or pursuant to this Agreement, the Indemnification
Escrow Agreement, the Side Agreement or any other agreement ancillary hereto. 
 (h) In connection with an Indemnified
Person’s rights under this Article 8 in connection with any Third Person Claim, an Indemnified Party shall be entitled to recover all damages that are recovered by third parties in connection with Losses suffered by the Indemnified
Person. In connection with an Indemnified Person’s rights for any other claim under this Agreement (other than for fraud), an Indemnified Person may not seek punitive, remote or speculative damages and shall only be entitled to recover Losses
that are probable and reasonably foreseeable on the date of this Agreement. 
 (i) The amount of any Losses for which
indemnification is provided to any Parent Indemnified Person under this Article 8 shall, from and after the Closing, be adjusted to take into account (i) any reduction in Taxes actually realized by the Parent Indemnified Person as a
result of the Loss giving rise to the payment or indemnity, and (ii) subject to Section 8.2(c), any Taxes that will be actually incurred by the Parent Indemnified Person with respect to such payment or indemnity. 

(j) The amount of any Losses for which indemnification is provided to any Parent Indemnified Person under this Article 8 shall,
from and after the Closing, be net of any amounts actually recovered under insurance policies maintained by the Company in effect immediately prior to the Closing and applicable to such Losses, net of reasonable out-of-pocket expenses actually
incurred by the Parent Indemnified Person in obtaining recovery. Parent will use its commercially reasonably efforts to promptly seek full recovery under the insurance policies referenced in the foregoing sentence; provided, however, that the Parent
Indemnified Person (including Parent) shall have no obligation to first submit or to collect upon any applicable insurance coverage as a precondition to making a claim for indemnification hereunder or obtaining indemnification for Losses therefor,
and the Parties hereto agree, without limiting any other rights any Indemnifying Party may have against Parent, not to delay in any manner the payment to Parent or any Parent Indemnified Person of such indemnification based on Parent’s
non-fulfillment of the foregoing obligation at the time any such claim is made. To the extent that any insurance payment is actually recovered by a Parent Indemnified Person after the related indemnification payment has been made pursuant to this
Agreement; the Parent Indemnified Person will pay over to the Indemnification Escrow Agent (to the extent that (a) amounts have been paid to Parent out of the Indemnification Escrow Account and (b) the Indemnification Escrow Agreement
remains in effect) or to the Exchange Agent (or, if the Exchange Agent is no longer engaged, to Parent) for distribution to the applicable Securityholders (in any other circumstance) the amounts of such insurance payments promptly after they are
actually recovered. If permitted under the terms of the applicable insurance policies, in lieu of the foregoing, the Parent Indemnified Person may subrogate or assign its rights to recover under such insurance policies to the Representative (on
behalf of the Securityholders) or their designee. 
  

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 (k) From and after the Closing, and without prejudice or limitation to any other
remedies available to the Parent, in the event that Parent or any Parent Indemnified Person is entitled to any indemnification pursuant to this Agreement, Parent may set-off the amount of such indemnification claim against any amounts of Earnout
Consideration due under Section 1.13 (the “Remaining Payments”), subject to the limitations set forth in this Section 8.6(k) and such set-off shall be allocated pro-rata for each Securityholder among cash and
Parent Common Stock in accordance with the percentage of Parent Common Stock and cash to the total Earnout Consideration payable to each such Securityholder, provided that such common stock shall be valued at the Parent Common Stock Value. With
respect to the right of Parent to set-off any Earnout Consideration due under Section 1.13, Parent shall have the right withhold any Earnout Shares or any cash portion of the Earnout Consideration (in an amount equal to the amount to be
set-off under this Section 8.6(k)) from any Earnout Consideration due under Section 1.13. In the event any Parent Indemnified Person has made a claim for indemnification hereunder and any indemnifying Party disputes its
obligation to make such indemnification, Parent may nonetheless withhold, or cause to be withheld, the amount of such Parent Indemnified Person’s claimed indemnification from the Remaining Payments until such dispute is resolved and such
withholding shall not be deemed a default by Parent hereunder. 
 (l) The Securityholders or Parent, as applicable, shall have
no liability with respect to any Indemnified Losses to the extent that Securityholders or Parent, as applicable, received a credit on account of such Indemnified Losses in determining an adjustment to the Merger Consideration pursuant to
Section 1.10 or with respect to any item for which there has been a Final Determination in accordance with Section 1.10. 

(m) For the avoidance of doubt, nothing herein shall be deemed to restrict the ability of the Indemnified Party to select the
representation, warranty, covenant or agreement upon which to base any claim by such Indemnified Party, including instances where more than one representation, warranty, covenant or agreement may have been breached or where the facts giving rise to
any such claim may constitute a breach under one representation, warranty, covenant or agreement, but not another. 
 8.7
Exclusive Remedy. Subject to the proviso below, from and after the Effective Time, the rights to indemnification, set-off, compensation and reimbursement set forth in or contemplated by this Article 8 shall be the sole and exclusive
remedy of any Person (whether at law or in equity) with respect to the transactions contemplated by this Agreement (except that the foregoing shall in no way limit any rights or remedies of a Person under or pursuant to the Side Agreements, the
Indemnification Escrow Agreement, any Non-Competition and Confidentiality Agreement or any other agreement entered into in connection with the transactions contemplated hereby), and no Person shall have any other claims, rights or remedies against
any other Person after the Closing Date, whether under this Agreement or under any applicable Law or otherwise, except for the remedies of specific performance, injunction and other equitable relief; provided, however, that notwithstanding the
foregoing or anything to the contrary set forth herein, no Person shall be deemed to have waived any rights, claims, defenses, causes of action or remedies (i) arising under federal or state securities laws, (ii) if and to the extent such
rights, claims, defenses, causes of action or remedies may not be waived under applicable Law, or (iii) arising out of or based upon fraud. 
  

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 ARTICLE 9 

TERMINATION 

9.1 Termination. 

(a) This Agreement may be terminated and the transactions contemplated hereby may be abandoned at any time prior to the Effective Time
only as follows, whether before or after the Company Shareholder Approval: 
 (i) by mutual consent of the
Company and Parent; 
 (ii) by either the Company, on the one hand, or Parent, on the other hand, if the Closing
shall not have occurred on or before October 2, 2010, provided that no Party may terminate this Agreement pursuant to this clause if such Party’s failure to fulfill any of its obligations under this Agreement shall have directly or
indirectly resulted in the failure of the Closing to occur on or before said date; 
 (iii) by Parent, at any
time after the date which is fifteen (15) days after the date that the Company first sends the Information Statement to the Shareholders, if the Company has not obtained the Company Shareholder Approval on or prior to the date which is fifteen
(15) days after the date that the Company first sends the Information Statement to the Shareholders; 
 (iv)
by Parent, if (A) an Adverse Recommendation Change shall have occurred or the Board of Directors of the Company authorizes the Company to enter into a definitive agreement concerning a Superior Proposal or (B) the Board of Directors of the
Company shall have failed to publicly confirm the Company Recommendation within five (5) Business Days of a written request by Parent that it do so; 
  

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 (v) by the Company prior to the receipt of the Company Shareholder
Approval, if the Board of Directors of the Company authorizes the Company, subject to complying with the terms of this Agreement, to enter into a written agreement concerning a Superior Proposal; provided, that the Company shall have paid any
amounts due pursuant to Section 10.7(b) in accordance with the terms, and at the times specified therein; and provided, further, that, prior to any such termination, (A) the Company notifies Parent in writing of its
intention to terminate this Agreement and to enter into a binding written agreement concerning an Acquisition Proposal that constitutes a Superior Proposal, attaching the most current version of such agreement (or a description of all material terms
and conditions thereof), (B) Parent is given the opportunity to meet with the Board of Directors of the Company and its financial advisors and outside legal counsel at such times as Parent may reasonably request for the purpose of enabling
Parent and the Company to discuss in good faith possible modifications of the terms and conditions of this Agreement, such that Parent can provide the binding written proposal described in (C) below, and (C) Parent does not make, within
three (3) Business Days of receipt of such written notification, a binding written proposal by Parent in the form of a proposed amendment to this Agreement that can be accepted by the Company by countersignature that is at least as favorable to
the shareholders of the Company as such Superior Proposal in the good faith judgment of the Board of Directors of the Company (it being understood that the Company shall not terminate this Agreement or enter into any such binding agreement during
such three (3) Business Day period, and that any amendment to the financial terms or other material terms of such Superior Proposal shall require a new written notification from the Company and an additional three Business Day period);

 (vi) by Parent if the Company shall have breached in any material respect any of its obligations under
Sections 4.5 or 4.7; 
 (vii) by Parent if (A) there shall have been a breach in any material
respect (individually or in the aggregate) of any representation or warranty on the part of any of the parties (other than Parent) set forth in this Agreement or the Side Agreement, or (B) there shall have been a breach by any of the parties
(other than Parent and Acquisition Subsidiary) of any of its covenants or agreements hereunder or under the Side Agreement, and such party has not cured such breach within twenty (20) Business Days after notice by Parent thereof, provided that,
with respect to clauses (A) and (B) above, Parent has not materially breached any of its obligations hereunder and failed to timely cure such breach; or 

(viii) by the Company if (A) there shall have been a breach in any material respect (individually or in the
aggregate) of any representation or warranty on the part of Parent set forth in this Agreement, or (B) there shall have been a breach by Parent or Acquisition Subsidiary of any of their respective covenants or agreements hereunder, and neither
Parent nor Acquisition Subsidiary has cured such breach within twenty (20) Business Days after notice by the Company thereof, provided that, with respect to clauses (A) and (B) above, the Securityholders and the Company have not
materially breached any of its obligations hereunder and failed to timely cure such breach. 
 The party desiring to terminate
this Agreement pursuant to the preceding clauses (ii) through (viii) shall give written notice of such termination to the other party in accordance with Section 10.1, below. 

 

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 (b) Procedure Upon Termination. In the event of termination pursuant to this
Article 9, the transactions contemplated hereby shall be abandoned without further action by the Parties hereto, provided that the agreements contained in Sections 6.2, 9.1(b) and 10.7 hereof shall remain in full force
and effect. If this Agreement is terminated as provided herein, each Party shall use its reasonable best efforts to return all documents, work papers and other material (including any copies thereof) of any other Party relating to the transactions
contemplated hereby, whether obtained before or after the execution hereof, to the Party furnishing the same. Nothing contained in this Agreement shall relieve any party from any liability for any breach of any representation, warranty or covenant
contained herein prior to termination. 
 ARTICLE 10 

MISCELLANEOUS PROVISIONS 

10.1 Notice. All notices, requests, demands, and other communications required or permitted under this Agreement shall be in
writing and shall be deemed to have been duly given and made upon being delivered either by courier or fax delivery to the Party for whom it is intended, provided that a copy thereof is deposited, postage prepaid, certified or registered mail,
return receipt requested, in the United States mail, bearing the address shown in this Section 10.1 for, or such other address as may be designated in writing hereafter by, such Party: 

If to Parent (or, after Closing, the Company): 

MEMC Electronic Materials, Inc. 

501 Pearl Drive (City of O’Fallon)

Post Office Box 8

St. Peters, MO 63376

Attn: General Counsel

Facsimile: (866) 773-0791 

with a copy to: 

Bryan Cave LLP 

One Metropolitan Square

211 N. Broadway, Suite 3600

St. Louis, MO 63102

Attention: Steven M. Baumer

Facsimile: (314) 259-2020 

If, prior to Closing, to the Company: 

Solaicx 
 5102
Calle del Sol
 Santa Clara, CA 95054

Attn: Guy Anthony

Facsimile: (408) 492-9880 
  

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 with a copy to: 

Wilson Sonsini Goodrich & Rosati 

650 Page Mill Road

Palo Alto, CA 94304

Attention: Robert P. Latta 

Facsimile: (650) 493-6811 

If to the Representative: 

Shareholder Representative Services LLC 

601 Montgomery Street, Suite 2020 

San Francisco, CA 94111 

Attention: Managing Director 

Email: deals@shareholderrep.com 

Facsimile No.: (415) 962-4147 

Telephone No.: (415) 367-9400 

10.2 Entire Agreement. This Agreement, the Indemnification Escrow Agreement, the Side Agreements and the Schedules and Exhibits
hereto and thereto embody the entire agreement and understanding of the Parties with respect to the subject matter hereof, and supersede all prior and contemporaneous agreements and understandings relative to such subject matter. 

10.3 Assignment; Binding Agreement. This Agreement and the various rights and obligations arising hereunder shall inure to the
benefit of and be binding upon the Parties and their respective successors, heirs, devisees, legatees, legal representatives and permitted assigns (whether direct or indirect, by purchase, merger, consolidation, reorganization or otherwise). Neither
this Agreement nor any of the rights, interests, or obligations hereunder shall be transferred, delegated, or assigned (by operation of Law or otherwise) by Parent without the prior written consent of the Representative (which consent shall not be
unreasonably withheld) or by the Representative or the Company without the prior written consent of Parent (which consent shall not be unreasonably withheld); provided, however, that Parent shall have the right to transfer and assign its and
Acquisition Subsidiary’s rights hereunder to any entity which is controlled by Parent. 
 10.4 Counterparts. This
Agreement may be executed simultaneously in multiple counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one and the same instrument. 

10.5 Headings; Interpretation. The Article and Section headings contained in this Agreement are inserted for convenience only and
shall not affect in any way the meaning or interpretation of the Agreement. Each reference in this Agreement to an Article, Section, Schedule or Exhibit, unless otherwise indicated, shall mean an Article or a Section of this Agreement or a Schedule
or Exhibit attached to this Agreement, respectively. References herein to “days,” unless otherwise indicated, are to consecutive calendar days. Each Party hereto has participated substantially in the negotiation and drafting of this
Agreement and each Party agrees that any ambiguity herein should not be construed against the draftsman. Whenever required by the context, any gender shall include any other gender, the singular shall include the plural and the plural shall include
the singular. 
  

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 10.6 Definitions. For purposes of this Agreement: 

(a) “Accredited Investor” shall have the meaning ascribed to such term in Rule 501 of Regulation D promulgated under the
Securities Act. 
 (b) “Affiliate” of a Person shall mean any other Person who directly or indirectly, through
one or more intermediaries, controls, is controlled by or is under common control with, such Person; 
 (c) “Business
Day” shall mean any day which is not a Saturday, Sunday or a legal holiday in the State of California, United States of America. 

(d) “Company Material Adverse Effect” shall mean any effect, circumstance, change, event or development (each an
“Effect”, and collectively, “Effects”), individually or in the aggregate, and taken together with all other Effects, that has (or have) a material adverse effect on the business, operations, financial condition or
results of operations of the Company, taken as a whole; provided, however, that no Effect (by itself or when aggregated or taken together with any and all other Effects) resulting from or arising out of any of the following shall be deemed to be or
constitute a “Company Material Adverse Effect,” and no Effect (by itself or when aggregated or taken together with any and all other such Effects) resulting from or arising out of any of the following shall be taken into account
when determining whether a “Company Material Adverse Effect” has occurred or may, would or could occur: 

(i) general economic conditions in the United States, China or any other country (or changes therein), general conditions
in the financial markets in the United States, China or any other country (or changes therein) or general political conditions in the United States, China or any other country (or changes therein), in any such case to the extent that such conditions
or changes do not affect the Company in a disproportionate manner relative to other participants in the industries in which the Company conducts business; 

(ii) general conditions in the industries in which the Company conducts business (or changes therein) to the extent that
such conditions or changes do not affect the Company in a disproportionate manner relative to other participants in the industries in which the Company conducts business; 

(iii) any conditions arising out of acts of terrorism, war or armed hostilities to the extent that such conditions do not
affect the Company in a disproportionate manner relative to other participants in the industries in which the Company conducts business; 

(iv) the impact of the announcement of this Agreement or the pendency of the transactions contemplated hereby on the
Company’s relationship (contractual or otherwise) with SunPower; 
  

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 (v) any action that is taken, or any failure to take action, by the
Company which Parent has requested in writing; 
 (vi) any changes in Laws or GAAP (or the interpretation
thereof); or 
 (vii) any failure by the Company to meet any projections, forecasts or estimates of revenues or
earnings in and of itself (it being understood that the underlying cause of, and the facts, circumstances or occurrences giving rise or contributing to such failure may be deemed to constitute a “Company Material Adverse Effect” (unless
otherwise excluded by this definition) and may be taken into account in determining whether there has been, is, or would be a Company Material Adverse Effect). 

(e) “Company’s Knowledge” shall mean the actual knowledge of those Persons set forth on Schedule 10.6(e).

 (f) “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended. 

(g) “Indebtedness” shall mean, without duplication (i) all indebtedness for borrowed money, whether current or
funded, secured or unsecured, including, without limitation, all indebtedness outstanding under that certain Promissory Note, issued September 19, 2008 by the Company for the benefit of the State of Oregon, provided that (x) the principal
amount of loans to the Company from Securityholders during the period from April 4, 2010 through the Closing Date to the extent the same are included in the term New Investment Adjustment Amount and/or any Post-Execution Investment Amount,
shall not be included (but any interest thereon shall be included), and (y) and the long term portion of any capital leases shall not be included; (ii) notes payable and drafts accepted representing extensions of credit, whether or not
representing obligations for borrowed money (for the avoidance of doubt, excluding any trade accounts payable and checks payable to the Company, which have been endorsed by the Company for collection in the Ordinary Course of Business);
(iii) guaranties securing indebtedness for borrowed money; (iv) all amounts drawn under outstanding letters of credit; (v) all costs and obligations incurred in connection with a change of control of the Company (including payments to
be made under the Management Carveout Plan at the Effective Time in excess of $2,442,000), but excluding (A) the Transaction Payroll Taxes, (B) all Transaction Expenses, and (C) payments to be made under the Management Carveout Plan
at the Effective Time of up to $2,442,000); (vi) all interest rate swap, derivative and similar arrangements; (vii) any amounts paid or payable for the Tail Policy in excess of $60,000; (viii) all Losses incurred by the Company prior
to the Effective Time or agreed by the Company prior to the Effective Time to be incurred at any time (whether before or after the Effective Time) in connection with any Securityholder Claims; and (ix) all interest (unless irrevocably waived by
the holders of such Indebtedness), any premiums payable or any other costs or charges (including any prepayment penalties) on any instruments or obligations described in clauses (i) through (viii) hereof, all as the same may be payable
upon the complete and final payoff thereof, regardless of whether such payoff occurs prior to, simultaneous with or following the Closing. 
  

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 (h) “made available” shall mean (i) for purposes of Article
2 of this Agreement, with respect to any material a copy of such material has been (A) posted on or before 9:00 p.m. (Pacific time) on May 20, 2010 to the electronic data room at https://datasite.merrillcorp.com, and
(B) memorialized in electronic format on a CD-ROM delivered to Parent promptly following the execution of this Agreement (but in no event later than 2 Business Days thereafter) and (ii) for purposes of Article 3 of this Agreement,
such information has been filed by Parent on EDGAR. 
 (i) “Net Working Capital” shall mean, as of any date,
the excess of the current assets of the Company (excluding any deferred Tax assets of the Company) over the current liabilities of the Company, including any payroll or employment taxes incurred by the Company on or prior to the Closing Date (the
“Transaction Payroll Taxes”) and excluding (i) any deferred Tax liabilities of the Company, (ii) the current portion of any Indebtedness of the Company, and (iii) any Transaction Expenses), in each case as reflected
on the balance sheet of the Company as of such date and as calculated in accordance GAAP applied in a manner consistent with accounting principles, policies, methodologies, practices and procedures applied in the preparation of the Annual Financial
Statements and, where applicable, the accounting principles, policies, methodologies, practices and procedures set forth on Schedule 1.10(a)(i) (it being understood and agreed that in the event of a conflict between the accounting principles,
policies, methodologies, practices and procedures applied in the preparation of the Annual Financial Statements and the accounting principles, policies, methodologies, practices and procedures set forth on Schedule 1.10(a)(i), accounting
principles, policies, methodologies, practices and procedures set forth on Schedule 1.10(a)(i) shall supersede, govern and control). For purposes of determining the Net Working Capital, the Post-Execution Investment Amount shall be deducted
from the amount of Net Working Capital as otherwise determined in accordance with the terms of this Agreement. 
 (j)
“New Investment Adjustment Amount” shall mean the face amount of all amounts invested into the Company by the Securityholders (whether in the form of equity, debt or a combination of the foregoing) on or after April 4, 2010 and
prior to the Closing Date, if and only if any such investments have been converted into equity prior to the Closing, plus $500,000. As of the date hereof, the New Investment Adjustment Amount would be equal to Ten Million Three and 20/100 Dollars
($10,000,003.20) as set forth on Schedule 1.10(a)(ii). 
  

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 (k) “Parent Material Adverse Effect” shall mean any Effect individually
or in the aggregate, and taken together with all other Effects, that has (or have) a material adverse effect on the business, operations, financial condition or results of operations of Parent and its Subsidiaries, taken as a whole; provided,
however, that no Effect (by itself or when aggregated or taken together with any and all other Effects) resulting from or arising out of any of the following shall be deemed to be or constitute a “Parent Material Adverse Effect,”
and no Effect (by itself or when aggregated or taken together with any and all other such Effects) resulting from or arising out of any of the following shall be taken into account when determining whether a “Parent Material Adverse
Effect” has occurred or may, would or could occur: 
 (i) general economic conditions in the United States,
China or any other country (or changes therein), general conditions in the financial markets in the United States, China or any other country (or changes therein) or general political conditions in the United States, China or any other country (or
changes therein), in any such case to the extent that such conditions or changes do not affect Parent in a disproportionate manner relative to other participants in the industries in which Parent conducts business; 

(ii) general conditions in the industries in which Parent conducts business (or changes therein) to the extent that such
conditions or changes do not affect Parent in a disproportionate manner relative to other participants in the industries in which Parent conducts business; 

(iii) any conditions arising out of acts of terrorism, war or armed hostilities to the extent that such conditions do not
affect Parent in a disproportionate manner relative to other participants in the industries in which Parent conducts business; 

(iv) any changes in Laws or GAAP (or the interpretation thereof); or 

(v) any failure by Parent to meet any projections, forecasts or estimates of revenues or earnings in and of itself (it
being understood that the underlying cause of, and the facts, circumstances or occurrences giving rise or contributing to such failure may be deemed to constitute a “Parent Material Adverse Effect” (unless otherwise excluded by this
definition) and may be taken into account in determining whether there has been, is, or would be a Parent Material Adverse Effect). 

(l) “Person” shall mean and include an individual, a partnership, a joint venture, a corporation, a limited liability
company, a trust, an association, an unincorporated organization, a Government and any other entity. 
 (m)
“Post-Execution Investment Amount” shall mean the face amount (i.e., not including any accrued interest thereon) of all amounts invested into the Company by the Securityholders (in the form of debt) on or after the date hereof and
prior to the Closing Date, if each such investments has been made in accordance with the terms of Section 4.1 and has not been converted into equity of the Company prior to the Closing. For purposes of determining the Net Working
Capital, the Post-Execution Investment Amount shall be deducted from the amount of Net Working Capital as otherwise determined in accordance with the terms of this Agreement. 

(n) “SEC” shall mean the United States Securities and Exchange Commission. 

(o) “Securities Act” shall mean the Securities Act of 1933 and the rules and regulations thereunder, as amended.

 (p) “Securityholders” shall mean collectively the Shareholders, holders of Company Warrants and holders of
Company Options. 
  

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 (q) “Securityholder Claim” means any claims (including claims against
any of Parent, the Company, the Surviving Company or their respective directors or officers) made, whether before or after the date hereof of before or after the Effective Time, by current (i.e., those as of the date of this Agreement or those who
become such between the date of this Agreement and the Closing Date) or former direct or indirect holders of equity or debt securities of the Company or by any participant in the Management Carveout Plan of any kind or nature whatsoever (including,
without limitation, all of the Securityholders), in their capacity as, or related to, their status as a current or former direct or indirect holder of equity or debt securities or participant in the Management Carveout Plan, or as an assignee or
based upon any relationship or arrangements with any of the foregoing, and whether any such claim arises under a contract, instrument, agreement, understanding or otherwise (other than claims against Parent or Acquisition Sub for breach of this
Agreement or any of the other agreements executed and delivered by Parent in connection herewith) and whether arising under law or under equity (other than claims for which the facts or circumstances giving rise to such claim first occur following
Closing); provided however, Securityholder Claims do not include any claim for appraisal or dissenters’ rights with respect to the shares of capital stock under California law or any other applicable Law. 

(r) “Securityholder’s Percentage” means, with respect to each Securityholder, the quotient obtained by dividing
(x) the aggregate amount of the Merger Consideration which such Securityholder is entitled to receive hereunder by (y) the aggregate amount of the Merger Consideration payable to all Securityholders hereunder, in each case expressed as a
percentage. The Spreadsheet shall set forth each Securityholder’s Percentage, and the sum of the Securityholder’s Percentage shall be 100%. The Parties understand and agree that each Securityholder’s Percentage may be different at the
Closing and at any time thereafter when additional Merger Consideration is paid hereunder, and the Spreadsheet shall be revised to reflect each Securityholder’s revised Securityholder’s Percentage after any such payment of additional
Merger Consideration hereunder. 
 (s) “Shareholder” shall mean a holder of Shares of the Company as of
immediately prior to the Effective Time. 
 (t) “Target Net Working Capital” shall mean zero. 

(u) “Transaction Expenses” shall mean all costs and expenses incurred or to be incurred by the Company in connection
with or as a result of (i) the preparation, negotiation and execution of this Agreement, the Indemnification Escrow Agreement, the Expense Escrow Agreement and/or any other agreements contemplated hereby, and/or (ii) the consummation of
the transactions contemplated hereby (including, without limitation, the Merger), and in any case, including, but not limited to, (A) all accounting, legal, investment banking fees and commercial banking fees and expenses related thereto (but
excluding any expenses incurred by the Company in connection with audits of the Company’s financial statements undertaken at the written request of the Parent), and (B) all change of control or other payments (including bonus acceleration
payments) paid to directors, officers and employees of the Company as a result of the consummation of the Merger. 
  

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 (v) “Warrant Holder” shall mean a holder of Company Warrants as of
immediately prior to the Effective Time. 
 10.7 Expenses. 

(a) Except as set forth in Section 10.7(b), Parent shall pay the fees and expenses of its counsel, accountants, experts,
other representative and all other expenses incurred by any of them incident or relating to the negotiation, preparation and execution of this Agreement and the transactions contemplated hereby, and the performance by it of its obligations
hereunder. All fees and expenses incurred by the Company (and any fees and expenses of any Securityholders and the Representative for which the Company is liable) incident or relating to the negotiation, preparation and execution of this Agreement
and/or the transactions contemplated hereby, and the performance by the Company of its obligations hereunder (including, without limitation, all fees and expenses of counsel, accountants (excluding any expenses incurred by the Company in connection
with audits of the Company’s financial statements undertaken at the written request of the Parent), experts and other representatives) shall be deemed to be Transaction Expenses. 

(b) If a Payment Event occurs pursuant to clause (y) or (z) below, the Company shall pay Parent (by wire transfer of
immediately available funds) simultaneously with the occurrence of such Payment Event, a fee equal to $2,500,000 (the “Termination Fee”). In addition, if a Payment Event occurs pursuant to clause (y) or (z) below, the
Company shall, in addition to making any payment required to be made in accordance with the preceding sentence (by wire transfer of immediately available funds), simultaneously with the occurrence of such Payment Event, reimburse Parent for all of
its out-of-pocket costs and expenses incurred by or on behalf of Parent (or its Affiliates) in connection with this Agreement and the transactions contemplated hereby and thereby, including, without limitation, financing costs and the fees and
expenses of lawyers, accountants, consultants, financial advisors and investment bankers up to an aggregate maximum amount of $1,250,000.00. In the event that this Agreement is terminated pursuant to Section 9.1(a)(vi), payment of the
Termination Fee plus the expenses referenced in the preceding sentence (together with any amounts payable under Section 10.7(c)) shall be deemed to be and constitute liquidated damages for any and all damages arising out of the breach
giving rise to such termination. 
 For purposes of this Agreement: 

“Payment Event” means the termination of this Agreement pursuant to (y) Section 9.1(a)(iii) if, there
has been any public statement by any Person with respect to a Qualifying Acquisition Proposal prior to such termination and within twelve (12) months following the date of such termination, the Company enters into a definitive agreement with
respect to a Qualifying Acquisition (and subsequently consummates such Qualifying Acquisition, whether or not within the preceding 12 month period), or consummates a Qualifying Acquisition, or (z) Sections 9.1(a)(iv), 9.1(a)(v) or
9.1(a)(vi). 
 “Qualifying Acquisition Proposal” has the same meaning as “Acquisition
Proposal” except that all references to 15% in the definition of “Acquisition Proposal” shall, for purposes of this definition, be deemed to be references to fifty percent (50%). 

 

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 (c) The Company acknowledges that the agreements contained in this
Section 10.7 are an integral part of the transactions contemplated by this Agreement and that, without these agreements, Parent and Acquisition Subsidiary would not enter into this Agreement. Accordingly, if the Company fails promptly to
pay any amount due to Parent or Acquisition Subsidiary pursuant to this Section 10.7, it shall also pay any costs and expenses (including attorneys’ fees) incurred by Parent or Acquisition Subsidiary in connection with a legal
action to enforce this Agreement that results in a judgment against the Company for such amount, together with interest on any amount of the Termination Fee at a rate per annum equal to five percent (5%) over the prime rate (as published in The
Wall Street Journal) in effect on the date such payment should have been made. 
 10.8 Remedies Cumulative. Except as
otherwise expressly provided herein, all rights and remedies of the Parties under this Agreement are cumulative and without prejudice to any other rights or remedies under Law. 

10.9 Specific Performance. The Parties agree that, in the event of any breach or threatened breach of any covenant, obligation or
other provision set forth in this Agreement: (a) each party hereto shall be entitled (in addition to any other remedy that may be available to it) to: (i) a decree or order of specific performance or mandamus to enforce the observance and
performance of such covenant, obligation or other provision; and (ii) an injunction restraining such breach or threatened breach; and (b) no party hereto shall be required to provide any bond or other security in connection with any such
decree, order or injunction or in connection with any related action. 
 10.10 Governing Law. This Agreement shall in all
respects be construed in accordance with and governed by the substantive laws of the State of California, without reference to its choice of law rules. 

10.11 Submission to Jurisdiction; Waivers. Each of the Parties irrevocably agrees that any legal action or proceeding with respect
to this Agreement or for recognition and enforcement of any judgment in respect hereof brought by a Party hereto or its successors or assigns may be brought and determined in the federal or state courts located in the State of California, County of
Santa Clara or the federal courts located in San Jose, California, and each of the Parties hereby irrevocably submits with regard to any such action or proceeding for itself and in respect to its property, generally and unconditionally, to the
non-exclusive jurisdiction of the aforesaid courts. Each of the Parties hereby irrevocably waives, and agrees not to assert, by way of motion, as a defense, counterclaim, or otherwise, in any action or proceeding with respect to this Agreement,
(a) any claim that a Party is not personally subject to the jurisdiction of the above named court for any reason other than the failure to serve process in accordance with this Section 10.11, (b) that it or its property is
exempt or immune from jurisdiction of any such court or from any legal process commenced in such court (whether through judgment or otherwise), and (c) to the fullest extent permitted by applicable law that (i) the suit, action or
proceeding in any such court is brought in an inconvenient forum, (ii) the venue of such suit, action or proceeding is improper and (iii) this Agreement, or the subject matter hereof, may not be enforced in or by such court. Each Party
hereto waives all personal service of any and all process upon such Party related to this Agreement and consents that all service of process upon such Party shall be made by hand delivery, certified mail or confirmed telecopy directed to such Party
at the address specified in Section 10.1 hereof; and service made by certified mail shall be complete seven days after the same shall have been posted. 

 

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 10.12 No Waiver. Any failure by any of the Parties hereto to comply with any of
the obligations, agreements or conditions set forth herein may be waived by the other Party or Parties; provided, however, that any such waiver shall not be deemed a waiver of any other obligation, agreement or condition. 

10.13 Severability. If any term or other provision of this Agreement is invalid, illegal, or incapable of being enforced by any
rule or law, or public policy, all other conditions and provisions of this Agreement shall nevertheless remain in full force and effect. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the
Parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the Parties as closely as possible in mutually acceptable manner in order that the transactions contemplated by this Agreement be
consummated as originally contemplated to the fullest extent possible. 
 10.14 Amendments. No modification, amendment or
waiver of any of the provisions of this Agreement shall be effective unless in writing and signed by the Parties hereto. 

10.15 No Third Party Beneficiaries. The Parties hereby agree that there are no third party beneficiaries to this Agreement, other
than (i) Parent Indemnified Persons and Shareholder Indemnified Persons and, (ii) with respect to Section 5.4, the Persons benefiting therefrom, who are expressly intended to be third party beneficiaries thereof and entitled to
enforce their rights hereunder. 
 *  *  *  * 

 

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 IN WITNESS WHEREOF, this Agreement has been duly executed and delivered by the Parties
and is effective as of the date first herein above written. 
  

			
	MEMC ELECTRONIC MATERIALS, INC.
		
	By:	 	 /s/ Ken Hannah

	Name:	 	Ken Hannah
	Title:	 	Executive Vice President and President – Solar Materials

 

			
	OSCAR ACQUISITION SUB, INC.
		
	By:	 	 /s/ Ken Hannah

	Name:	 	Ken Hannah
	Title:	 	President

  

			
	SOLAICX
		
	By:	 	 /s/ David A. Ranhoff

	Name:	 	David A. Ranhoff
	Title:	 	President and CEO

  

	
	SHAREHOLDER REPRESENTATIVE SERVICES LLC, solely in its capacity as the Representative
	
	 /s/ Paul Koening

	
	Paul Koening
	
	Manager

  

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 Schedule 1.13(a) 

Earnout Calculation 
  

	1.	For purposes of this Agreement, “Revenue” shall mean consolidated revenue recognized by Parent, in accordance with United States GAAP applied by Parent
on a basis consistent with past practice, from sales of monocrystalline prime ingot or prime slabbed ingot within the Earnout Period (including sales to subsidiaries and other affiliates of Parent); provided, however, that notwithstanding
Parent’s application of United States GAAP to the determination of “Revenue”, “Revenue” for purposes hereof shall be determined prior to any netting of the cost and associated markup of the poly raw material used to produce
the monocrystalline prime ingot or prime slabbed ingot. Revenue shall be calculated as the product of (a) quantity (Kg) of ingot shipped and (b) price of such ingot based on the purchase order applicable thereto. With respect to such
calculation relating to sales to third parties, the same price per Kg that is used in the most recent applicable purchase order (whether to SunPower or otherwise) for the price should be used for purposes of the calculation (i.e., cropped Kg or
slabbed Kg, as applicable). 

  

	2.	For purposes of this Agreement, the “Revenue Baseline” shall be equal to $60,000,000. The “Revenue Target” shall be equal to
$71,800,000. The “Actual Revenue” shall be the dollar value of the Revenue during the time period covered by such Earnout Statement, and shall be the total amount of Revenue earned during the entire Earnout Period and not the
Revenue for any particular period during the Earnout Period. 

  

	3.	With respect to any Earnout Statement, if the Actual Revenue is in excess of the Revenue Baseline, then the Preliminary Earnout Consideration shall be an amount in cash
and shares of Parent Common, as determined in accordance with this Agreement and the Earnout Escrow Agreement, equal to the product obtained by multiplying (A) $27,642,000 and (B) a fraction, the numerator of which is the lesser of
(i) applicable Actual Revenue and (ii) 71,800,000, and the denominator of which is 71,800,000, less any amount of Earnout Consideration previously paid or payable to the Stockholders (including, for the avoidance of doubt, any such
Earnout Consideration that may have been payable but was not paid as a result of the exercise of set-off rights of Parent under the Merger Agreement). 

  

	4.	In the event that during the Earnout Period, Parent causes the Surviving Company to sell in another product form factor or type and/or in combination with other
products of Parent or Parent’s Subsidiaries, such as monocrystalline wafers (“Wafers”), instead of monocrystalline prime ingot or prime slabbed ingot, the Parties hereto agree that the conversion factor of revenue from the sale
of Wafers into “Revenue” for the purposes of determining the “Actual Revenue” shall be a product equal to (a) the quantity (in Kg) of ingot shipped to be converted into Wafers and (b) the price of the most recent
similar sale (based on specifications, customer requirements, etc.) to a third party of moncrystalline prime ingot or prime slabbed ingot. In the event that during the Earnout Period Parent causes the Surviving Company to sell monocrystalline prime
ingot or prime slabbed ingot in a form or manner other than as monocrystalline prime ingot, prime slabbed ingot or Wafers, Parent agrees to negotiate in good faith with the Representative to establish a mutually acceptable revenue conversion factor
to apply to revenue derived from the sale of any such products. 

  

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 Schedule 1.13(f) 

Certain Earnout Covenants 
  

	(a)	Except as Parent and the Representative may otherwise agree in writing, from the Closing Date through and including the last day of the Earnout Period, Parent shall
cause Surviving Company to, and Surviving Company shall, operate the business of the Surviving Company as conducted by the Company on the Closing Date prior to the Effective Time (the “Business”) in good faith, and Parent shall use
commercially reasonable efforts to cause the Revenue Target to be achieved. 

  

	(b)	During the Earnout Period, Parent shall: 

  

	 	(i)	Make available to the Surviving Company a commercially reasonable amount of materials (including normalized levels of working capital). 

 

	 	(ii)	Fund the Surviving Company’s requirements for cost of goods sold for Q3’10 to Q4’11 in an amount up to $[*****] million and operating expenses for
Q3’10 to Q4’11 in an amount up to $[*****] million, to be used in the manner set forth in the business plan of the Surviving Company with respect to the Business as set forth on Exhibit A hereto (the “Business
Plan”), provided that this covenant shall not be deemed to have been breached if Parent causes the build out, materials provisioning and staffing of [*****] pullers, regardless of whether the full amounts set forth above are funded or
expended. 

  

	 	(iii)	Fund the Surviving Company’s requirements for capital expenditure and capital equipment for Q3’10 to Q4’11 in an amount up to $[*****] million, to be
used in the manner set forth in the Business Plan, provided that this covenant shall not be deemed to have been breached if Parent causes the build out, materials provisioning and staffing of [*****] pullers, regardless of whether the full amount of
capital expenditures set forth above is funded or expended. 

  

	 	(iv)	Ensure that there are sufficient orders to support the Surviving Company’s production capacity. 

 

	(c)	The Parties agree that the none of the foregoing provisions relating to the achievement of the Revenue Target shall be deemed to be breached, and in no event shall
subsection (d) of this Schedule 1.13(f) be deemed to be triggered, in the event of either of the following (each, “Cause”): 

  

	 	(i)	In the event of any material infringement arising out of Company Intellectual Property, Company Software, Company Manufacturing Tools or any other Intellectual Property
owned or used by the Company prior to Closing for which a Third Person Claim is made that results in, or is reasonably likely to result in, Losses to Parent or the Surviving Company that make the Business commercially unviable as measured against
the Business Plan; provided, however, that, for the avoidance of doubt, changes to the Company Intellectual Property, Company Software, Company Manufacturing Tools or any other Intellectual Property owned or used in connection with the Business made
by Parent or any of its affiliates (including the Surviving Company) after Closing that are responsible for having caused or created such material infringement shall not constitute Cause hereunder; or 

 

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	 	(ii)	If (A) the Business cannot be run in a commercially viable manner with the resources agreed upon in subsection (b) of this Schedule 1.13(f) and the
Business Plan and (B) Parent actually terminates the operations of the Business as result thereof. 

  

	(d)	If, during the Earnout Period, in the absence of Cause, (i) Parent materially breaches its obligations to provide support to the Surviving Company with respect to
the Business in accordance with the express terms of any of the provisions above (including, for the avoidance of doubt, Parent’s obligation under clause (b)(iv) of this Schedule 1.13(f)) or (ii) Parent fully terminates the
operations of the Business, then the Revenue Target shall be deemed to have been fully met as of the date of the occurrence of the event in (i) or (ii) above and the full Earnout Consideration shall be due and payable pursuant to the
payment and allocation provisions of Section 1.13 and Schedule 1.13(f). 

  

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 Schedule 1.13(g) 

Dispute Resolution 
  

	(a)	Disputes. In the event any dispute arises between the Representative and Parent (or any of its Subsidiaries which expressly includes the Surviving Company and
its Subsidiaries and the respective successors and assigns of each of the foregoing) (each an “Earnout Party”) in connection with the Earnout, any Earnout Statement or any of the covenants, agreements or calculations set forth on
this Schedule 1.13(g), the Earnout Parties agree that such dispute will be resolved as follows: 

  

	 	(i)	Mediation. The Earnout Parties shall first attempt to resolve the dispute by themselves through the participation in such endeavor of the Executive Vice
President – Solar Materials of Parent and the Representatives. In the event that the Earnout Parties are unable to resolve such dispute themselves within ten (10) Business Days from when an Earnout Party has provided notice to the other
Earnout Parties of such dispute (the “Initial Period”), then, within three (3) Business Days following the end of the Initial Period, the Earnout Parties shall submit the dispute to non-binding mediation through a neutral
mediator selected by mutual agreement. In the event that the Earnout Parties are unable to resolve such dispute by mediation within fifteen (15) Business Days following such submission (the “Mediation Period”), unless the
Earnout Parties mutually agree to extend the Mediation Period at the conclusion of the initial period, such dispute shall be resolved by binding arbitration as set forth below. 

 

	 	(ii)	Rules. Except as expressly provided herein to the contrary, the arbitration proceeding shall be conducted under the Commercial Arbitration Rules of the American
Arbitration Association in effect at the time a demand for arbitration is made. To the extent that there is any conflict between the rules of the American Arbitration Association and this Schedule 1.13(g), this Schedule 1.13(g) shall govern and
determine the rights of the Earnout Parties. 

  

	 	(iii)	Location; Selection of Arbitrators. The arbitration will take place in Palo Alto, California (or such other place as the Earnout Parties shall mutually agree),
before a single arbitrator, which arbitrator shall have experience in matters and industries relevant to such dispute; provided, however that if the amount in controversy exceeds $10 million, then either the Parent or the Representatives
shall have the right to require that three arbitrators be used. In the event that the Earnout Parties cannot agree on a single arbitrator within five (5) Business Days following the end of the Mediation Period, then the arbitrator shall be
selected as follows: either Earnout Party may request the American Arbitration Association to provide a list of at least five (5), but no more than nine (9) proposed arbitrators, all of whom must be retired judges with at least ten
(10) years of judicial experience, but who may still be active in the practice of law; provided that any such prospective arbitrator shall have experience in earnout matters relevant to such dispute. If the Earnout Parties are unable to
mutually select an arbitrator from such list, the Earnout Parties to such dispute shall then take turns crossing off the names one at a time until one name remains, who shall thereupon be appointed the arbitrator. The Earnout Parties to such dispute
shall select by lot which of them strikes the first name from the list of proposed arbitrators. If the person selected in this method to be the arbitrator declines or is otherwise unavailable to serve as the arbitrator of the dispute, the arbitrator
shall be selected from the same list of proposed arbitrators selected in the reverse order to which those proposed arbitrators’ names were struck from the list until one of those individuals elected to be the arbitrator accepts the appointment
and is able to serve as the arbitrator. 

  

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	 	(iv)	Arbitration Procedures. The arbitrator selected in the manner set forth herein (the “Arbitrator”) shall be requested to honor the intention of
the Earnout Parties hereto to resolve the dispute quickly and in accordance with the intent of the parties expressed in this Schedule 1.13(g). All decisions shall be made with this intention in mind. The decision of the Arbitrator shall be final and
binding on all Earnout Parties, their successors and assigns as applicable. Except as expressly set forth in this Schedule 1.13(g), the Arbitrator shall determine the manner in which the arbitration proceeding is conducted, including, without
limitation, the time and place of all hearings, the order or presentation of evidence and all of the questions that arise with respect to the arbitration proceeding. The arbitration shall entitle both parties to conduct discovery consistent with the
applicable rules of civil procedure for federal courts situated in San Jose, California. If deemed necessary by the Arbitrator, the Arbitrator shall have the right to retain a nationally recognized accounting firm to aid in the Arbitrator’s
consideration of the dispute which accounting firm must be reasonably acceptable to both Earnout Parties. The Arbitrator shall be required to determine all issues in accordance with California law. The arbitration shall be conducted in
“baseball arbitration” style, whereby each Earnout Party shall submit their proposed result, and the Arbitrator may only choose one or the other proposed result. Either Earnout Party to the arbitration may seek a judgment from a court of
competent jurisdiction to enforce the award of the Arbitrator. 

  

	 	(v)	Costs. The cost of mediation and, if applicable, arbitration, including administrative fees, fees for recording a transcript, and the mediator’s and, if
applicable, the Arbitrator’s fees, shall be borne equally by Parent and the Securityholders party to the mediation and, if applicable, arbitration. Each of Parent and the Securityholders shall bear the costs of the fees charged such party or
parties, as applicable, by its own counsel; and the Arbitrator shall not have the discretion or the right to award reasonable attorneys’ fees to either Parent or the Securityholder 

 

 117Framework Agreement

 Exhibit 10.69 

EXECUTION COPY 

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FRAMEWORK AGREEMENT 

BY AND AMONG 

SUN EDISON LLC, 

FREI SUN HOLDINGS (CAYMAN) LTD., 

FREI SUN HOLDINGS (US) LLC, 

SUNEDISON RESERVE US, L.P., 

AND 

SUNEDISON RESERVE INTERNATIONAL, L.P. 

Dated as of May 21, 2010 

 Table of Contents 

 

							
	 	 	 	  	 	  	Page
	 ARTICLE 1.
	 	Defined Terms.	  	2
			
	 ARTICLE 2.
	 	Joint Venture Entities	  	12
		 	 2.1
	  	Establishment of Joint Venture Entities.	  	12
		 	 2.2
	  	Capital Commitments and Percentage Interests.	  	13
		 	 2.3
	  	Capital Contributions.	  	14
		 	 2.4
	  	Preemptive Rights.	  	16
		 	 2.5
	  	Governance and Management.	  	16
		 	 2.6
	  	Sale and Assignment; Transfer Restrictions.	  	18
			
	 ARTICLE 3.
	 	Project Development.	  	27
		 	 3.1
	  	Acquisition and/or Transfer of Projects.	  	27
		 	 3.2
	  	Conditions to a JV Entity’s Purchase Obligations.	  	32
		 	 3.3
	  	Purchase Price and Financial Key Terms.	  	35
		 	 3.4
	  	Financing.	  	36
		 	 3.5
	  	Exclusivity.	  	39
			
	 ARTICLE 4.
	 	Representations and Warranties.	  	39
		 	 4.1
	  	Representations and Warranties of SunEdison.	  	39
		 	 4.2
	  	Representations and Warranties of FR Holdings.	  	41
		 	 4.3
	  	Representations and Warranties of FR Holdings US.	  	43
			
	 ARTICLE 5.
	 	Default.	  	44
		 	 5.1
	  	Events of Default.	  	44
		 	 5.2
	  	Remedies.	  	45
		 	 5.3
	  	Indemnification; Limitation of Liability.	  	46
			
	 ARTICLE 6.
	 	Term and Termination.	  	46
		 	 6.1
	  	Term.	  	46
		 	 6.2
	  	Termination by Mutual Consent.	  	46
		 	 6.3
	  	Termination on Completion.	  	46
		 	 6.4
	  	Termination on Transfer of all Interests.	  	46
		 	 6.5
	  	Termination by FR Holdings upon Transfer of all of SunEdison’s Interests.	  	47
		 	 6.6
	  	Termination upon Events of Default and JV Risk.	  	47
			
	 ARTICLE 7.
	 	General.	  	51
		 	 7.1
	  	Governing Law; Construction.	  	51
		 	 7.2
	  	Waiver of Jury Trial.	  	51
		 	 7.3
	  	Further Assurances.	  	52
		 	 7.4
	  	Notices.	  	52
		 	 7.5
	  	Performance on Business Days.	  	53
		 	 7.6
	  	Counterpart Execution.	  	53
		 	 7.7
	  	Confidentiality.	  	54

  

 i 

							
		 	 7.8
	  	Non-Waiver.	  	55
		 	 7.9
	  	Third Party Rights.	  	55
		 	 7.10
	  	Headings.	  	55
		 	 7.11
	  	Entire Agreement.	  	55
		 	 7.12
	  	Severability.	  	55
		 	 7.13
	  	Expenses.	  	55
		 	 7.14
	  	Assignment.	  	55

  

					
	 Exhibits:
	 		  	
	 Exhibit A
	 	–	  	Mandatory Project Due Diligence
	 Exhibit B
	 	–	  	Base Case Model
	 Exhibit C
	 	–	  	Business Plan (with Initial Project Submittal Tranche and Target Projects)
	 Exhibit D
	 	–	  	Form of EPC Agreement
	 Exhibit E
	 	–	  	Form of O&M Agreement
	 Exhibit F
	 	–	  	Fund Guarantee
	 Exhibit G
	 	–	  	MEMC Guarantee
	 Exhibit H
	 	–	  	Form of Project JV Entity Guaranty
	 Exhibit I
	 	–	  	Form of SunEdison Guaranty
	 Exhibit J
	 	–	  	US JV Agreement
	 Exhibit K
	 	–	  	International JV Agreement
	 Exhibit L
	 	–	  	Form of Joinder Agreement
	 Exhibit M
	 	–	  	Registration Rights
	 Exhibit N
	 	–	  	Approved Tier 1 Vendors
	 Exhibit O
	 	–	  	Form of Project Pricing Summary Sheet
			
	 Schedules:
	 		  	
			
	 Schedule I
	 	—	  	Capital Commitments

  

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 FRAMEWORK AGREEMENT 

THIS FRAMEWORK AGREEMENT (“Agreement”) is made this
21st day of May, 2010, by and among Sun Edison LLC, a
Delaware limited liability company (“SunEdison”); FREI Sun Holdings (Cayman) Ltd., a Cayman Islands exempted company (“FR Holdings”); FREI Sun Holdings (US) LLC, a Delaware limited liability company
(“FR Holdings US”); if applicable, any Joinder Parties (as defined below); SunEdison Reserve International, L.P., a Cayman Islands exempted limited partnership formed by SunEdison and FR Holdings (“SunEdison
Reserve International”); and SunEdison Reserve US, L.P., a Delaware limited partnership formed by SunEdison and FR Holdings US (“SunEdison Reserve US”) (each a “Party” and collectively the
“Parties”). 
 Recitals 

WHEREAS, SunEdison provides solar energy services that integrate the design, installation, financing, monitoring, operations and
maintenance of photovoltaic (PV) solar power generation assets, and each of FR Holdings and FR Holdings US is an investment vehicle focused on energy investments; 

WHEREAS, SunEdison and FR Holdings have caused the formation of SunEdison Reserve International, and SunEdison and FR Holdings US
have caused the formation of SunEdison Reserve US, to serve as the initial vehicles through which FR Holdings and FR Holdings US will provide cash equity and arrange for long-term financing for PV solar power plant projects identified by SunEdison
in the Targeted Countries (as defined below) and meeting the project criteria as set forth herein; 
 WHEREAS, the
Parties desire to allocate responsibilities for the identification, development, financing, operation and maintenance of the solar power projects and to set forth each of the Parties’ rights and obligations with respect to the others in
connection therewith; 
 WHEREAS, simultaneously with the execution of this Agreement, and as a condition and inducement
to SunEdison’s willingness to enter into this Agreement, First Reserve Energy Infrastructure Fund L.P. (the “Fund”) has executed and delivered to SunEdison a Guarantee (the “Fund Guarantee”) set
forth as Exhibit F hereto, dated as of the date hereof in favor of SunEdison, with respect to certain obligations of FR Holdings and FR Holdings US under this Agreement; 

WHEREAS, simultaneously with the execution of this Agreement, and as a condition and inducement to FR Holdings’ willingness
to enter into this Agreement, MEMC Electronic Materials, Inc. (“MEMC”) has executed and delivered to each of FR Holdings and FR Holdings US a Guarantee (the “MEMC Guarantee”) set forth as Exhibit
G hereto, dated as of the date hereof in favor of FR Holdings and FR Holdings US, with respect to certain obligations of SunEdison and its Affiliates (as defined below) under this Agreement and each EPC Agreement and O&M Agreement (each as
defined below); 
  

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

ARTICLE 1. Defined Terms. 

The following terms, when used herein, shall have the meanings set forth below. The meanings specified for any defined term in this
Agreement are applicable both to the plural and the singular. 
 “Additional Investor” shall have the
meaning set forth in Section 2.2(c). 
 “Affiliate” shall mean, with respect to any Party,
any Person which directly or indirectly through one or more intermediaries controls, is controlled by, or is under common control with, such Party. 

“Approved Tier 1 Vendors” means those panel and inverter providers listed on Exhibit N
attached hereto. 
 “Base Case Model” shall mean the application of the Pricing Model to a Project
to be constructed, as represented in the Project Pricing Summary Sheet for such Project, substantially in the form of Exhibit B. The Base Case Model shall assume a closing date for the Project Debt Financing of a Project at three months after
the COD of such Project. A different Base Case Model shall be used for each Targeted Country and shall be adjusted upon the occurrence of any material change to the assumptions used therein in a manner that is mutually acceptable to each of FR
Holdings and SunEdison. 
 “Board” shall have the meaning set forth in Section 2.5(a).

 “Business Day” means (i) any day other than a Saturday, Sunday or other day on which commercial
banks are authorized to close under the laws of, or are in fact closed in, the State of New York or, if applicable, (ii) if such day relates to any Project located in a Targeted Country other than the United States, means with respect to any
Project located in such Targeted Country, a day, other than a Saturday or Sunday, on which banks are open for business in the State of New York and the capital city of such Targeted Country. 

“Business Plan” shall mean the business plan attached hereto as Exhibit C. 

“Call Option” shall have the meaning set forth in Section 2.6(g). 

“Call Option Notice” shall have the meaning set forth in Section 2.6(g). 

“Capital Call Notice” shall mean the notice given by a JV Entity to the Investors to make a Capital Contribution
to the JV Entity as more fully described in Section 2.3(a) hereof. 
 “Capital Commitments”
shall mean the commitments of each Investor to provide the capital contributions to the JV Entities as required by Article 2 hereof, which (i) in the case of 

 

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FR Holdings shall equal $150,000,000 and (ii) in the case of SunEdison shall equal $16,666,000 (together the “Initial Capital Commitments”), as reflected on
Schedule I attached hereto, as such Schedule is updated from time to time pursuant to the operation of Section 2.2(c) or Section 2.6 of this Agreement. 

“Capital Contribution” shall mean, with respect to an Investor, the amount of its Capital Commitment contributed
by such Investor pursuant to a Capital Call Notice. 
 “Closing Date” shall mean the date of this
Agreement. 
 “COD” shall mean, with respect to a Project, the date such Project achieves Substantial
Completion, as defined in the EPC Agreement applicable to such Project. 
 “Co-Investors” shall have the
meaning set forth in Section 2.2(b). 
 “Competing Investment” shall have the meaning set
forth in Section 3.5. 
 “Competing Transaction” shall have the meaning set forth in
Section 3.1(a). 
 “Competitor Company” shall mean any of [*****];[*****];[*****];
[*****];[*****];[*****]; and [*****] (including any parent, controlled affiliate, Subsidiary or successor entity of any of them) and such other Persons as SunEdison may identify by written notice to FR Holdings and as FR Holdings may approve, which
approval shall not be unreasonably withheld or delayed. 
 “Competitor Tag-Along Right” shall
have the meaning set forth in Section 2.6(c). 
 “Competitor Tag-Along Inclusion
Notice” shall have the meaning set forth in Section 2.6(c). 
 “Confirmation Notice”
shall mean the written notice delivered by a Project JV Entity to SunEdison or the SunEdison EPC Party, as applicable, to confirm the satisfaction of the conditions precedent set forth in Section 3.2 with respect to a particular Project.

 “Confirmation Window” for any Project shall mean the ten (10) Business Day period following the
Project JV Entity’s receipt of the Notice of Completion of CPs with respect to a Project. 
 “Development
Commitment” shall mean the commitment of SunEdison to submit Projects to the JV Entities providing for an aggregate amount of megawatts of electric energy generating capacity sufficient to require investment of 100% of the aggregate
Initial Capital Commitments (assuming a 4:1 ratio of Project Debt Financing to equity with respect to each Project) by no later than three (3) years from the Closing Date; provided that no Project shall count towards the Development
Commitment (i) until such time as SunEdison provides the Mandatory Project Due Diligence in respect of such Project or (ii) if the Expected Project Timeline contemplates a date of Substantial Completion (as such term is defined in the EPC
Agreement) which is greater than eight (8) months from the date of the notice of Project 
  

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Submittal Tranche (in which case the Project would only count towards the Development Commitment if and at such time as the JV Entity accepts the Project Submittal Tranche in which such Project
is included). The inclusion of the Rovigo Project as part of any Project Submittal Tranche, unless agreed to by FR Holdings, shall not be counted toward the Development Commitment. 

“Disbursement Fraction” shall have the meaning set forth in Section 3.3(d). 

“Drag-Along Right” shall have the meaning set forth in Section 2.6(f). 

“EPC Agreement” shall mean, for a particular Project, an engineering, procuring and construction agreement
entered into by and between the SunEdison EPC Party and either the JV Entity or a Project Company designated by the JV Entity, which agreement shall be in substantially the form of Exhibit D, attached hereto, subject to modifications for the
particular Project as more particularly set forth in this Agreement. 
 “Escrow Agreement” shall have
the meaning set forth in Section 3.3(d). 
 “Escrow Amount”, with respect to each Project
other than the Rovigo Project, shall mean a sum equal to the difference between the Target Purchase Price for such Project minus the purchase price for such Project which would yield to the Project JV Entity a levered internal rate of return of
[*****]% utilizing the Base Case Model and assuming a closing date for the Project Debt Financing for such Project of six (6) months after the COD for such Project, all as specified or modified in the Project Pricing Summary Sheet for such
Project. For the Rovigo Project, the Escrow Amount shall be as specified in the Project Pricing Summary Sheet for the Rovigo Project. 

“Event of Default” shall have the meaning set forth in Section 5.1. 

“Exclusive Development Time Frame” means (a) for each Project constituting any part of a Project Submittal
Tranche, the period commencing on the date SunEdison delivers written notice of such Project Submittal Tranche pursuant to Section 3.1(a) and submits the Mandatory Project Due Diligence in respect thereof and ending on the latest to
occur of (x) the date which is forty-five (45) days thereafter and (y) if accepted into the Registry, the date on which such Project has been fully paid for pursuant to an EPC Agreement or removed from the Registry pursuant to
Section 3.2(e), and (b) for each of the Projects listed on Schedule I to the Business Plan, the period commencing on the date of this Agreement and ending on the date which is the latest to occur of (x) forty-five
(45) days after SunEdison submits the Mandatory Project Due Diligence and Expected Project Timeline in respect of such Project and (y) if accepted into the Registry, the date on which such Project has been fully paid for pursuant to an EPC
Agreement or removed from the Registry. 
 “Expected Project Timeline” shall have the meaning set forth
in Section 3.1(a). 
 “Fund” shall have the meaning set forth in the Recitals. 

“Fund Breach” shall have the meaning set forth in Section 6.6(b). 

 

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 “Fund Guarantee” shall have the meaning set forth in the
Recitals. 
 “Funding Date” shall have the meaning set forth in Section 2.3(a). 

“Force Majeure” means any event or circumstance that (a) prevents the affected Party (or its permitted
assignee) from performing its obligations under this Agreement, (b) is beyond the reasonable control of the affected Party (or its permitted assignee), (c) is not due to the fault or negligence of the affected Party (or its permitted
assignee), its subcontractors or those for whom it is otherwise responsible under contract or at law, and (d) does not arise by reason of any act or omission by the affected Party (or its subcontractors or those for whom it is otherwise
responsible under contract or at law, including its permitted assignee) in breach of the provisions of this Agreement, which event or circumstance may include (i) unusually severe weather conditions for the location of the underlying Project;
(ii) fires, explosions, floods, earthquakes, tornadoes, epidemics, civil disturbances, war, riots, sabotage; (iii) failure of a governmental agency to act in a reasonably timely manner with respect to permit matters or regulatory filings;
or (iv) strikes, work-to-rules actions, go-slow or similar labor difficulties occurring on an industry or nationwide basis. Force Majeure shall not include any market changes, credit tightening or other issues related to the ability to obtain
the Project Debt Financing or any other conditions in the capital markets. 
 “FR Holdings” shall have
the meaning set forth in the Preamble. The Parties hereby acknowledge and agree that investors in FR Holdings will participate in SunEdison Reserve US through FR Holdings US (and not through FR Holdings). Accordingly, throughout this Agreement,
references to the term “FR Holdings” shall be deemed to include (or refer to, as applicable) FR Holdings US where and only to the extent applicable in the context (including, in each case, where the applicable JV Entity is SunEdison
Reserve US). For the avoidance of doubt, (i) the aggregate Capital Commitment (including the Initial Capital Commitment) of FR Holdings is inclusive of the capital commitment of FR Holdings US, (ii) the Unused Capital Commitment of FR
Holdings and the Unused Capital Commitment of FR Holdings US shall be the one and the same, without duplication, (iii) “FR Holdings” as used in Section 3.5 includes FR Holdings and FR Holdings US and (iv) wherever the
consent or notification of FR Holdings is required to be obtained under this Agreement, only the consent or notification, as applicable, of FR Holdings (and not FR Holdings US) shall be required to be obtained, unless the event or matter giving rise
to the need for such consent or notification relates specifically to SunEdison Reserve US, in which case the consent or notification, as applicable, of FR Holdings US shall be required to be obtained. 

“FR Holdings US” shall have the meaning set forth in the Preamble. 

“FR Purchase Option” shall have the meaning set forth in Section 3.1(b)(ii). 

“Inclusion Right” shall have the meaning set forth in Section 2.6(e). 

“Information” shall have the meaning set forth in Section 7.7. 

“Initial Capital Commitments” shall have the meaning set out above in the definition of “Capital
Commitments”. 
  

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 “Initial Review” shall have the meaning set forth in
Section 3.1(a). 
 “Interest” shall mean an Investor’s limited partnership, membership
or other similar equity interest in one or more of the JV Entities (as the context indicates). 
 “International JV
Agreement” shall mean the exempted limited partnership agreement of SunEdison Reserve International (as amended, restated, supplemented or otherwise modified from time to time), a copy of which is set forth at Exhibit K hereto.

 “Investment Exclusivity Period” shall mean the period commencing on the Closing Date and ending on
the latest to occur of: 
 (1) the one-year anniversary of the Closing Date; 

(2) the two-year anniversary of the Closing Date, if, and only if, as of the one-year anniversary of the Closing Date, SunEdison has
delivered the Notices of Completion of CPs in accordance with this Agreement with respect to Projects the Purchase Prices of which (assuming a 4:1 ratio of Project Debt Financing to equity) are sufficient to require Capital Contributions equal to or
in excess of $[*****]; and 
 (3) if, as of the two-year anniversary of the Closing Date, (i) the conditions set forth in
the preceding clause (2) have been met and (ii) the JV Entities have accepted into the Registry (and not removed pursuant to Section 3.2(e)) Projects the Purchase Prices of which (assuming a 4:1 ratio of Project Debt Financing
to equity) are sufficient to require Capital Contributions equal to or in excess of $[*****], then, the date on which FR Holdings shall have made Capital Contributions equal to its Initial Capital Commitment (or, if earlier, the date on which no JV
Entity or Project Company has any further obligation to make Milestone Payments pursuant to an EPC Agreement to any of the aforesaid Projects). 

“Investor” shall mean each Person making a Capital Commitment, which shall initially be SunEdison and FR
Holdings, and later, if applicable, any Joinder Party. 
 “Investor Interest” shall have the meaning set
forth in Section 2.6(d). 
 “Investor Sale Notice” shall have the meaning set forth in
Section 2.6(d). 
 “Investor Sale Price” shall have the meaning set forth in
Section 2.6(d). 
 “IPO” shall mean, with respect to a JV Entity, the closing of the first
sale of equity securities of that JV Entity to the public in a registered public offering under the laws of the jurisdiction in which such public offering is undertaken, resulting in a public market for the equity securities of such JV Entity.

 “Issuance Notice” shall have the meaning set forth in Section 2.4. 

“Issuance Notice Window” shall have the meaning set forth in Section 2.4. 

 

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 “Joinder Agreement” shall mean a joinder agreement in
substantially the form of Exhibit L attached hereto. 
 “Joinder Party” shall mean a Person,
other than FR Holdings and SunEdison, who makes a Capital Commitment pursuant to Section 2.2(c) or Section 2.6 and agrees to be bound by the terms of this Agreement pursuant to executing a Joinder Agreement. 

“Joint Sale Period” shall have the meaning set forth in Section 6.6(f). 

“JV Entity” refers, as the context indicates, to SunEdison Reserve US, SunEdison International, or any other
joint venture entity formed by SunEdison and FR Holdings further to this Agreement after the date hereof to serve as a vehicle through which FR Holdings will provide cash equity and arrange for long-term financing for Projects in a Targeted Country
other than the United States, or to any of them. 
 “JV Entity Agreement” shall mean the US JV
Agreement, the International JV Agreement or the governing organizational document of any other JV Entity, as the case may be. 

“JV Risk” shall have the meaning set forth in Section 6.6(c). 

“Lockup Period” shall mean the later of (i) the [*****] anniversary of the Closing Date, or
(ii) (a) in the case of a proposed Transfer of Interests by FR Holdings (or any assignee of FR Holdings) or the transfer by the Fund of its ownership interests in FR Holdings such that its portion of FR Holdings’ Percentage Interest
attributable to the Fund is less than 50.1%, the date when all Projects in the Registry have been developed and fully paid for by the JV Entities or cancelled or removed pursuant to Section 3.2(e), or (b) in the case of a proposed
Transfer of Interests by SunEdison, the date on which all agreements (other than O&M Agreements) entered into by SunEdison or a SunEdison EPC Party to provide services to the JV Entities or Project Companies have expired; provided that the
Lockup Period shall automatically terminate, and shall be of no further effect, with respect to a Transfer of Interests of a JV Entity following the IPO of that JV Entity. 

“Mandatory Project Due Diligence”, with respect to a Project, shall mean the due diligence matters identified on
Exhibit A. 
 “MEMC” shall have the meaning set forth in the Recitals. 

“MEMC Breach” shall have the meaning set forth in Section 6.6(a). 

“MEMC Guarantee” shall have the meaning set forth in the Recitals. 

“Milestone Payments” for a Project shall mean the payments identified as “Milestone Payments” to be
made by the Project JV Entity or Project Company, as applicable, pursuant to the EPC Agreement for such Project. 

“Non-Qualifying Entity” shall have the meaning set forth in Section 2.2(d). 

 

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 “Notice of Completion of CPs”, with respect to a Project, shall
mean the notice to be delivered by SunEdison or the SunEdison EPC Party, as applicable, to the Project JV Entity of the satisfaction of the conditions set forth in Section 3.2 below for such Project. 

“Observer” shall have the meaning set forth in Section 2.5(b). 

“Offered Interest” shall have the meaning set forth in Section 2.6(c). 

“Offer Price” shall have the meaning set forth in Section 2.6(c). 

“O&M Agreement” shall mean, with respect to a Project, an operations and maintenance agreement entered into
by and between SunEdison (or its designated Affiliate) and the Project JV Entity (or its designated Project Company), which agreement shall be in substantially the form of Exhibit E, attached hereto and incorporated herein by reference,
subject to modifications for the particular Project as more particularly set forth in this Agreement. 
 “Outside
Date” shall have the meaning set forth in Section 3.2. 
 “Percentage Interest”
shall mean, as of any date of determination, that percentage which corresponds with the ratio which each Investor’s Capital Commitment (without regard to whether such Investor has any Unused Capital Commitment or the amount thereof) bears to
the total Capital Commitments of all Investors (without regard to whether any such Investors have any unused Capital Commitments or the amounts thereof). As the context requires, an Investor’s Percentage Interest may be measured with respect to
a particular JV Entity or multiple JV Entities. 
 “Permitted Transferee” shall mean with respect to any
Investor, any Affiliate of such Investor (provided that, in the case of FR Holdings, Permitted Transferee means any Affiliate of First Reserve Management, L.P.) who has executed a Joinder Agreement in connection with a Transfer of all or part of
that Investor’s Interest in a JV Entity. 
 “Person” shall mean and include natural persons,
corporations, limited partnerships, general partnerships, limited liability companies, limited liability partnerships, joint stock companies, joint ventures, associates, companies, trusts, banks, trust companies, land trusts, business trusts or
other organizations, whether or not legal entities, and governmental authorities. 
 “PPA”, in respect
of a Project, shall mean a power purchase agreement or feed-in tariff agreement entered into between the Project Company and a Person utilizing or purchasing all or part of the electricity generated by such Project. For the avoidance of doubt, the
Investors acknowledge that a PPA may initially be executed by and between an Affiliate of SunEdison and a third-party and then assigned or transferred to the Project Company. 

“Post-COD Working Capital” shall have the meaning set forth in Section 3.4(d). 

“Post-COD Working Capital Facility” shall mean one or more working capital facilities which may be obtained by a
JV Entity in order to finance the Post-COD Working Capital. 
  

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 “Pre-COD Working Capital” shall have the meaning set forth in
Section 3.4(c). 
 “Pre-COD Working Capital Facility” shall mean one or more working capital
facilities which may be obtained by a JV Entity in order to finance the Pre-COD Working Capital. 
 “Pricing
Model”, for each Targeted Country, shall mean the Excel model utilized to generate the Purchase Price for Projects in that Targeted Country as represented in an electronic message from Mr. Tomakin Archambault, Director of Market
Finance of SunEdison to Mark Florian, Director of FR Holdings, and confirmed by electronic message from Mr. Florian to Mr. Archambault. 

“Project” shall mean a solar photovoltaic (“PV”) power generation facility placed or
proposed to be placed into construction by SunEdison pursuant to this Agreement. 
 “Project Company”
shall mean the Affiliate of the Project JV Entity designated by that entity to own that Project (and either the Project JV Entity or such Affiliate shall be the party to the EPC Agreement and O&M Agreement related to such Project). 

“Project Company Breach” shall have the meaning set forth in Section 6.6(b). 

“Project Debt Financing” shall mean the short-term bridge and long-term debt financing obtained by the Project JV
Entity for the Projects. For the avoidance of doubt, the Parties acknowledge and agree that the Project Debt Financing may include the Pre-COD Working Capital Facility (if any) and the Post-COD Working Capital Facility (if any). The Project JV
Entity is not required to provide Project Debt Financing that includes construction financing, although it will cooperate with SunEdison to assist in obtaining such financing. 

“Project JV Entity” shall refer to the particular JV Entity to which a Project has been presented and accepted
into the related Registry. 
 “Project JV Entity Breach” shall have the meaning set forth in
Section 6.6(b). 
 “Project JV Entity Guaranty” shall mean the guaranty of the Project
Company’s obligations under an EPC Agreement and O&M Agreement to be provided by the Project JV Entity, which guaranty shall be substantially in the form of Exhibit H. 

“Project Parameters” shall mean, with respect to any Project, the requirements that such Project (i) is
located within a Targeted Country and (ii) meets or exceeds the Target IRR for such Targeted Country as set forth in the Business Plan and the applicable Base Case Model. 

“Project Pricing Summary Sheet” for a Project shall mean a summary setting forth the Target Purchase Price, the
Escrow Amount and all material elements applicable to the Pricing Model for such Project, which summary shall be in substantially the form of Exhibit O attached hereto and incorporated herein by reference. 

“Project Purchase Commitment” shall mean the commitment of the Project JV Entity to purchase a Project in
accordance with the provisions of Sections 3.1, 3.2 and 3.3. 
  

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 “Project Re-Sale” shall have the meaning set forth in
Section 6.6(f). 
 “Project Submittal Tranche” shall mean a Project or assemblage of
Projects identified in writing by SunEdison and aggregating not less than [*****] ([*****]) megawatts of electric energy generating capacity. 

“Purchase Option” shall have the meaning set forth in Section 2.6(c). 

“Purchase Notice” shall have the meaning set forth in Section 2.6(c). 

“Purchase Price”, with respect to each Project, shall mean the cash consideration to be paid by the applicable
Project JV Entity or Project Company to the SunEdison EPC Party for the purchase of such Project in accordance with the EPC Agreement for such Project and as reflected on the Project Pricing Summary Sheet. 

“Registry” shall mean the list of Projects to be constructed which have been presented by SunEdison to and
accepted by one of the JV Entities, as such list may be amended or supplemented from time to time in accordance with the provisions of this Agreement. 

“Related Documents” shall mean each of the Business Plan, Fund Guarantee and MEMC Guarantee, as well as each JV
Entity Agreement, Joinder Agreement, Project JV Entity Guaranty, SunEdison Guaranty, EPC Agreement and O&M Agreement and any other documents that may be executed and delivered from time to time in connection with this Agreement. 

“Required Sale” shall have the meaning set forth in Section 2.6(f). 

“Required Sale Notice” shall have the meaning set forth in Section 2.6(f). 

“ROFR Exercise Notice” shall have the meaning set forth in Section 2.6(d). 

“ROFR Period” shall have the meaning set forth in Section 2.6(d). 

“Rovigo Project” shall mean the approximately seventy (70) megawatt solar power generation facility which
may be developed for SunEdison Reserve International in the Italian province of Rovigo and identified on the Registry. 

“Securities Act” shall have the meaning set forth in Section 4.1(e). 

“Selling Investor” shall have the meaning set forth in Section 2.6(e). 

“Subsidiary” shall mean, with respect to any Person, (i) any corporation or other entity a majority of the
capital stock of which having ordinary voting power to elect a majority of the board of directors or other Persons performing similar functions is at the time owned, directly or indirectly, with power to vote, by such Person or any direct or
indirect Subsidiary of such Person or (ii) a partnership in which such Person or any direct or indirect Subsidiary is a general partner. 

“SunEdison” shall have the meaning set forth in the Preamble. 

 

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 “SunEdison Breach” shall have the meaning set forth in
Section 6.6(b). 
 “SunEdison Carrying Cost” shall mean, with respect to any Milestone Payments
owed to the SunEdison EPC Party under an EPC Agreement, or in the case of Milestone Payments referred to in Section 6.6(e) owed pursuant to Section 3.2 of this Agreement, which are past due, interest accruing at the rate of
[*****]% per annum commencing on the due date of such payment and accruing through the earlier of (i) the one year anniversary of such due date; (ii) the date on which a Project Re-Sale has been consummated pursuant to
Section 6.6(f); and (iii) the payment to the SunEdison EPC Party with respect to a particular Project of the full Milestone Payments then due together with all then accrued and unpaid SunEdison Carrying Costs thereon and, if
applicable, reasonable attorneys fees and court costs. 
 “SunEdison Contractor Breach” shall have the
meaning set forth in Section 6.6(a). 
 “SunEdison EPC Party” shall mean the Affiliate or
Affiliates of SunEdison designated from time to time by SunEdison to be the Contractor (as defined in the EPC Agreement) under one or more of the EPC Agreements. 

“SunEdison Guaranty” shall mean the guaranty of the Contractor’s (as defined in the EPC Agreement)
obligations under an EPC Agreement to be provided by SunEdison, which guaranty shall be substantially in the form of Exhibit I. 

“SunEdison Reserve International” shall have the meaning set forth in the Preamble. 

“SunEdison Reserve US” shall have the meaning set forth in the Preamble. 

“Tag-Along Acceptance” shall have the meaning set forth in Section 2.6(e). 

“Tag Inclusion Notice” shall have the meaning set forth in Section 2.6(e). 

“Tag Offerees” shall have the meaning set forth in Section 2.6(e). 

“Target IRR” shall mean, with respect to a Project, the target internal rate of return on equity with respect to
a Project which is utilized to generate the Target Purchase Price. The Target IRR shall be specific to each Targeted Country and shall be represented in the Pricing Model for such Targeted Country and set forth in the Project Pricing Summary Sheet
with respect to a Project. 
 “Target Purchase Price”, with respect to each Project, shall mean the
projected Purchase Price for a Project as set forth in the Project Pricing Summary Sheet applicable to such Project. The Target Purchase Price shall be generated by utilizing the Base Case Model and the applicable Target IRR. 

“Targeted Country” shall mean any of Canada, Italy, Spain, the United States and such other countries as the
Parties may mutually designate for the development of Projects pursuant to this Agreement. 
  

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 “Third Parties” shall have the meaning set forth in
Section 3.1(a). 
 “Transfer” shall mean to sell, hypothecate, pledge, assign or otherwise
transfer. 
 “Transfer Notice” shall have the meaning set forth in Section 2.6(c).

 “Transfer Period” shall have the meaning set forth in Section 2.6(c). 

“Unused Capital Commitment” shall be the basis upon which Capital Contributions are called by the JV Entities and
shall mean, with respect to any Investor and as of any time, such Investor’s Capital Commitment, minus (A) the sum of all Capital Contributions previously made by such Investor to a JV Entity, plus (B) the sum of
(i) any portion of a Capital Contribution previously made by such Investor to a JV Entity for a Project prior to the JV Entity obtaining Project Debt Financing for such Project, which portion is returned or credited back to such Investor
upon obtaining Project Debt Financing for such Project as contemplated by Section 2.3(c); provided that this clause (i) shall only apply in the case of Project Debt Financing obtained within six (6) months of COD for such
Project; and (ii) any portion of a Capital Contribution previously made by that Investor which, in connection with a subsequent Capital Contribution by an Additional Investor(s) permitted under Section 2.2(c), is returned or credited
back to such Investor as contemplated by Section 2.3(c); provided that this clause (ii) shall only apply in respect of amounts returned or credited to such Investor no later than the one-year anniversary of the date on which such
Investor’s previous Capital Contribution was made. For the avoidance of doubt, (x) the preceding provision for increasing Unused Capital Commitments by the amount of any capital returned shall not apply in connection
with the sale of a Project to a third party; and (y) the preceding provision for increasing Unused Capital Commitments by the amount of any capital returned or credited back shall not require Investors to make payments in excess of the
limitations set forth in Section 2.3(a) or in excess of their respective Capital Commitments. Unused Capital Commitments shall also be reduced as and to the extent provided in Section 2.3(c). 

“US JV Agreement” shall mean the limited partnership agreement of SunEdison Reserve US (as amended, restated,
supplemented or otherwise modified from time to time), a copy of which is set forth at Exhibit J hereto. 

“VAT” shall have the meaning set forth in Section 3.4(f). 

ARTICLE 2. Joint Venture Entities 

2.1 Establishment of Joint Venture Entities. 

(a) Purpose. SunEdison and FR Holdings have caused the formation of SunEdison Reserve International, and SunEdison
and FR Holdings US have caused the formation of SunEdison Reserve US, to serve as the initial vehicles through which the parties will provide long-term financing for the Projects placed on the Registry, including by purchasing or causing the
purchase of the completed Projects, as contemplated by Article 3 hereof. The US JV Agreement is set forth as Exhibit J hereto and the International JV Agreement is set forth as Exhibit K hereto. 

 

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 (b) Additional JV Entities. The Parties acknowledge that it may
be desirous in the future to establish one or more additional JV Entities to finance Projects in a Targeted Country. At such time as FR Holdings and SunEdison determine in writing to establish such additional JV Entity, the Parties will cooperate to
amend this Agreement if and to the extent necessary to establish such additional JV Entity; provided, that it shall be a condition to the establishment of such additional JV Entity that (i) it shall become a party to this Agreement,
(ii) the organizational document(s) of such additional JV Entity shall contain provisions substantially similar to those included in the International JV Agreement in respect of capital structure, ownership terms, conditions and governance.

 2.2 Capital Commitments and Percentage Interests. 

(a) Initial Investors. The Capital Commitment, Unused Capital Commitments and Percentage Interest of each Investor
is set forth on Schedule I attached hereto and shall be amended from time to time by FR Holdings (and provided to SunEdison) to reflect the Capital Commitment of any Additional Investor, as well as to reflect any changes to an Investor’s
Capital Commitment, Percentage Interest or Unused Capital Commitment. 
 (b) Co-Investors in FR Holdings.
The Parties hereby acknowledge that from time to time and at any time on or after the Closing Date, FR Holdings may invite investors (the “Co-Investors”), other than the Fund and its Affiliates, to make a capital commitment
to, or otherwise purchase an interest in, FR Holdings. Nothing in this Agreement shall be construed to limit the ability of FR Holdings to accept such capital commitment or sell any interest in itself to such investors, except that without the prior
written consent of SunEdison, (i) no Competitor Company shall be permitted to make a capital commitment to, or otherwise purchase an interest in, FR Holdings and (ii) no Person shall be permitted to make a capital commitment to, or
otherwise purchase an interest in, FR Holdings that would result in (x) the voting or economic interest of the Fund and its Affiliates (measured as a whole) in FR Holdings being less than 50.1% or (y) that portion of FR Holding’s
Percentage Interest attributable to the Fund being less than 50.1%. 
 (c) Additional Investors. From time
to time and at any time on or after the date hereof, any additional Person may, upon the written consent of FR Holdings and the execution of a Joinder Agreement, make a Capital Commitment (any such Person, excluding a Person that acquires an
Investor’s Interest pursuant to Section 2.6, an “Additional Investor”); provided, however, that (i) FR Holdings shall, to the extent practicable, notify SunEdison of any such contemplated Additional
Investor prior to the acceptance of such Additional Investor’s Capital Commitment, (ii) in no case may an Additional Investor make a Capital Commitment that would result in (x) the Percentage Interest of FR Holdings being less than
50.1% or (y) that portion of FR Holding’s Percentage Interest attributable to the Fund being less than 50.1% of its aggregate Percentage Interest, (iii) without the prior written consent of SunEdison, no Competitor Company may become
an Additional Investor, (iv) without the prior written consent of SunEdison, such consent not to be unreasonably withheld or delayed, no Additional 

 

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Investor may be permitted to make a Capital Commitment without executing and delivering to SunEdison a Guarantee with respect to its Capital Commitment on substantially the same terms and
conditions as the Fund Guarantee, (v) the issuance of the Interests to such Additional Investor will be subject to the provisions of this Article 2, including, without limitation, Section 2.4 below, (vi) the issuance of
the Interests to such Additional Investor will be subject to each of the applicable JV Entity Agreements, and (vii) the issuance of the Interests to such Additional Investor shall not adversely and disproportionately affect the Interests of
SunEdison as an Investor as compared to other Investors (disregarding for this purpose the fact that SunEdison and the other Investors may or may not choose to exercise rights under Section 2.4 in connection with a proposed issuance). From time
to time, FR Holdings and JV Entities will evaluate market conditions, Project opportunities available to the JV Entities and existing capital available to be deployed under this Agreement. Dependent upon and subject to such assessments, FR Holdings
and the JV Entities intend to, but shall not be obligated to, expand available Capital Commitments, using commercially reasonable efforts to obtain from investors additional Capital Commitments of up to $150,000,000 to develop and purchase
additional Projects hereunder. 
 (d) Taxable Entity Status for SunEdison Reserve US Members. It is
understood and agreed that notwithstanding the foregoing, no Person may be a member of SunEdison Reserve US that is not eligible for purposes of qualification of SunEdison Reserve US for “grants in lieu of tax credit” pursuant to
Section 1603(g) of the American Recovery and Reinvestment Act of 2009 (“Non-Qualifying Entity”). Accordingly, any Additional Investor that is a Non-Qualifying Entity shall establish a C blocker corporation through which
it will invest in SunEdison Reserve US. 
 2.3 Capital Contributions. 

(a) As and when capital is required by a JV Entity in order to make Milestone Payments pursuant to the applicable EPC
Agreement or payments necessary to fund indemnity or other obligations hereunder with respect to a particular Project, such JV Entity shall be obligated to deliver a Capital Call Notice to each of the Investors. Each such Capital Call Notice shall
specify (a) that the Capital Contribution is required to be made by such Investor pursuant to this Section 2.3, (b) the anticipated purpose for which the Capital Contribution shall be used, (c) each Investor’s pro
rata share of such Capital Contribution, which shall be based on its Unused Capital Commitment and (d) the due date for payment of such Capital Contribution, which shall not be prior to ten (10) Business Days following the date of such
Capital Call Notice (a “Funding Date”). Each of the Investors will thereafter be required to make, by no later than the Funding Date, a Capital Contribution in cash in the amount stated in, and otherwise pursuant to the terms
of, the Capital Call Notice; provided that (i) no Investor shall be required to make a Capital Contribution in excess of the then-current amount of its Unused Capital Commitment, (ii) SunEdison’s requirement to make a Capital
Contribution shall, if and when applicable, be modified by the provisions of Sections 2.6(c), (e), (f), (g) and Section 3.1(b), and (iii) the total amount of Capital Contributions which may be required in respect of any
Project from time to time shall not exceed the sum of: 
 (x) the then unpaid Purchase Price of such Project;
plus 
  

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 (y) an amount equal to the sum of (1) the SunEdison Carrying Cost,
if any, and (2) reasonable attorneys’ fees and out-of-pocket expenses incurred by SunEdison, if any, in enforcing its rights to payment hereunder. 

(b) The determination of the amount and timing of a capital call shall be made by the Board by taking into account, among
other factors, the available Project Debt Financing for a Project; provided, however, that the JV Entity shall be obligated to deliver such Capital Call Notices as may be required in order to meet the financial obligations described herein. The
obligation of an Investor to make the Capital Contribution required pursuant to the Capital Call Notice shall be the direct obligation of such Investor and shall be enforceable by the JV Entity. 

(c) The Parties acknowledge that Investors may be required to fund Capital Contributions with respect to a Project prior
to the JV Entity obtaining Project Debt Financing for that Project. The Parties intend that when Project Debt Financing is obtained for such Project within the six (6) month period referred to in clause (i) of the definition of
“Unused Capital Commitment”, the amount of equity capital replaced by such Project Debt Financing will either be (i) returned to the Investors or (ii) retained by the applicable JV Entity. In the former case, the amount returned
will increase the applicable Investor’s Unused Capital Commitment as provided in the definition thereof. In the case of clause (ii), the amount retained will be “credited back” to each applicable Investor (and will correspondingly
increase such applicable Investor’s Unused Capital Commitment as provided in the definition thereof) and be available for payment of obligations relating to such Project or other Projects which otherwise could be required to be satisfied
pursuant to Capital Contributions hereunder from such applicable Investor (with, in the event of such payment, a corresponding reduction in such Investor’s Unused Capital Commitment). Additionally, if, in connection with a subsequent Capital
Contribution by an Additional Investor described in clause (ii) of the definition of “Unused Capital Commitment”, any portion of an Investor’s Capital Contribution (which Capital Contribution was made during the one-year period
referred to in such clause (ii)) is retained by the applicable JV Entity (rather than the return thereof to such Investor) in order to facilitate the pro rata participation of all Investors in a Project, then the amount so retained will be
“credited back” to such Investor (and will correspondingly increase such Investor’s Unused Capital Commitment as provided in the definition thereof) and be available for payment of obligations relating to such Project or other
Projects which otherwise could be required to be satisfied pursuant to Capital Contributions hereunder from such Investor (with, in the event of such payment, a corresponding reduction in such Investor’s Unused Capital Commitment). For the sake
of clarity, and notwithstanding anything to the contrary contained in this Agreement, in no event shall any Investor be required to fund amounts “credited back” under this Section 2.3(c), and added to the definition of Unused
Capital Commitment, in cash. 
  

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 2.4 Preemptive Rights. 

Each Investor shall have preemptive rights with respect to any future equity issuances by the JV Entities other than equity issuances
(i) in connection with an employee stock option plan or other bona fide employment compensation arrangement that is approved by the Board of such JV Entity, (ii) as consideration in connection with a bona fide acquisition by the JV Entity
or any of its Subsidiaries or (iii) pursuant to an IPO. Accordingly, prior to issuing any additional equity interests in the JV Entity to any Person, except as provided above, the JV Entity must give each Investor a notice (an
“Issuance Notice”) of the JV Entity’s intention to make such issuance. The Issuance Notice shall describe the type of additional equity interests, and the price and terms upon which it proposes to issue such additional
equity interests. Each Investor shall have fifteen (15) Business Days (the “Issuance Notice Window”) from the date of receipt of the Issuance Notice to agree to purchase up to its pro rata portion (based on each
Party’s then Percentage Interest in such JV Entity) of such additional equity interests for the price and upon the terms specified in the Issuance Notice by giving written notice to the JV Entity and stating therein the quantity of additional
equity interests elected to be purchased. Any issuance to an Investor pursuant to an exercise of its preemptive rights under this Section 2.4 shall be consummated within fifteen (15) Business Days following the Issuance Notice
Window. In the event that any Investor fails to exercise in full the preemptive rights set forth in this Section 2.4 within the Issuance Notice Window, the JV Entity shall have fifteen (15) Business Days thereafter to issue the
additional interests not elected to be purchased under this Section 2.4 at the price and upon terms no more favorable to the purchasers than specified in the Issuance Notice. In the event that the JV Entity has not sold such additional
equity interests within such subsequent fifteen (15) Business Day period, the JV Entity shall not thereafter issue or sell any additional equity interests without first offering such additional equity interests in the manner provided in this
Section 2.4. The obligations of the JV Entities and the rights of the Investors under this Section 2.4 shall terminate upon an IPO of that JV Entity. 

2.5 Governance and Management. 

(a) Board. The business and affairs of each of the JV Entities shall be managed by a board of directors (or similar
governing body) (the “Board”). Except as required by any non-waivable provision of applicable law or the provisions of this Agreement, the Board shall have full, complete and exclusive authority, power and discretion to
manage and control the business, property and affairs of the JV Entities, to make all decisions regarding those matters, to supervise, direct and control the actions of its officers and to perform any and all other actions customary or incident to
the management of its business, property and affairs. Unless otherwise provided in the JV Entity Agreement and subject to Section 2.5(d), (i) at any vote taken by the Board, each member of the Board shall be afforded that number of
votes that corresponds to the Percentage Interest of the Investor appointing such member relative to the Percentage Interest of the Investor appointing each other member; provided that wherever two or more members have been appointed by the same
Investor, such Investor’s Percentage Interest shall be deemed to be divided equally among such members and (ii) subject to any non-waivable provision of applicable law, any act of the Board (including any vote, resolution or other action)
shall require at least that number of members holding a majority of the votes entitled to vote thereon, as calculated pursuant to the preceding clause. 
  

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 (b) Board Composition. The Board shall initially consist of at
least three persons, two of whom shall be designated by FR Holdings and one of whom shall be designated by SunEdison. FR Holdings shall at all times have and retain the right to appoint the Chairman and Secretary of the Board and to expand or
decrease the size of the Board (but no fewer than three members for so long as SunEdison maintains the right to designate a member pursuant to this Section 2.5(b)). For so long as SunEdison’s Percentage Interest in the JV Entities
is at least five percent (5%), SunEdison shall have the right to designate one member of the Board and thereafter, for so long as SunEdison holds an Interest in such JV Entity and there has not been an IPO of such JV Entity, SunEdison shall have the
right to appoint one individual to serve as an observer on such Board (each, an “Observer”). Subject to the terms of the JV Entity Agreement, the Observer shall be entitled to (i) attend all meetings of the Board,
including any committee meetings of the Board, (ii) receive notices of such meetings concurrently with the members of the Board or such committees thereof and (iii) receive all information provided to members of the Board or such
committees thereof at such meetings; provided, that the Observer shall have no voting rights and his or her presence shall not be required for determining a quorum at any meeting he or she is entitled to attend pursuant to this
Section 2.5(b). Either SunEdison or FR Holdings may, at any time, remove and/or replace its respective member(s) of the Board. Any member of the Board removed for cause pursuant to the terms of the JV Entity Agreement may only be
replaced by the Party that designated such Board member; provided that with respect to any Board member so removed that was designated by SunEdison, SunEdison may only replace such Board member if it is still then entitled to appoint a Board member
pursuant to this Section 2.5(b). 
 (c) Investor Voting. Unless otherwise provided by the JV
Entity Agreement or by applicable law and subject to Section 2.5(d), any vote, resolution or other action required to be taken by the Investors in their capacity as limited partners, members, stockholders or other interest holders of
such JV Entity shall require a majority in interest (measured by each Investor’s Percentage Interest) of the Investors entitled to vote or act thereon. Each Investor shall be afforded that number of votes that corresponds to such
Investor’s Percentage Interest. 
 (d) SunEdison Veto Right. Notwithstanding anything herein to the
contrary, SunEdison shall have the right to approve, in its sole discretion: (i) any amendment to the JV Entity Agreement that could reasonably be expected to have a disproportionate material adverse effect on the business, assets, properties,
results of operations, financial condition of SunEdison and its Subsidiaries (taken as a whole), (ii) any employee stock option plan or other employee equity plan or arrangement that directly or indirectly results in equity issuance by the JV
Entity which individually or when aggregated with all other such employee plans or arrangements of all JV Entities exceeds two percent (2%) of the aggregate outstanding Interests of all JV Entities, (iii) the reduction of Capital
Commitments for the JV Entity and (iv) until the last to occur of (A) the end of the 
  

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Investment Exclusivity Period, and (B) the date upon which not less than ninety-five percent (95%) of the Parties’ Capital Commitments have been allocated to Projects, (w) any
transaction by the JV Entity pursuant to which the JV Entity will acquire any material assets (other than pursuant to an EPC Agreement); (x) the purchase or other financing by a JV Entity or Project Company of any solar power project outside
the scope of this Agreement with a Person other than SunEdison; (y) material changes to the Business Plan; or (z) an IPO; provided, however, that the events and transactions described in sub-section (iv) shall not reduce, encumber or
eliminate the Unused Capital Commitments as of the date thereof and all such Unused Capital Commitments shall be fully allocated only to Projects. 

2.6 Sale and Assignment; Transfer Restrictions. 

(a) General Restrictions. Except as provided in the JV Entity Agreement, no Investor may Transfer all or part of
its Interest without complying with this Agreement. Any Transfer that does not so comply with all applicable terms of this Agreement shall be null and void and of no force or effect. Notwithstanding anything herein to the contrary, an
Investor may, at any time, Transfer all or any portion of its Interest to a Permitted Transferee without having to comply with the restrictions set forth in this Section 2.6. Except for a Transfer by FR Holdings in compliance with the
provisions of Section 2.6(c), (i) no Investor may Transfer all or any part of its Interests and (ii) no Co-Investor may Transfer all or any part of its equity interest in FR Holdings, in either of clauses (i) or (ii), to a
Competitor Company. The FR Holdings organizational documents shall be drafted to ensure this transfer prohibition is included. 

(b) Lockup Period. During the Lockup Period, (i) no Investor may Transfer all or part of its Interest without
the prior written consent of both of SunEdison and FR Holdings and (ii) the Fund may not transfer its ownership interests in FR Holdings to the extent such transfer would reduce the Fund’s portion of FR Holdings’ Percentage
Interest attributable to the Fund being less than 50.1%, without the prior written consent of SunEdison. 
 (c)
Right of First Offer. 
  

	 	(i)	 On and after the expiration or termination of the Lockup Period (other than any termination thereof with respect to a JV Entity in connection with an
IPO of that JV Entity), in the event FR Holdings desires to Transfer all or any part of its Interest (the “Offered Interest”) to any Competitor Company, other than pursuant to, and in accordance with
Section 2.6(e) (as a Tag Offeree) or Section 2.6(f), such proposed Transfer shall be subject to a right of first offer pursuant to this Section 2.6(c) and FR Holdings shall first be required to furnish to
SunEdison a written notice of such proposed Transfer (the “Transfer Notice”). The Transfer Notice shall describe (i) the portion of such Investor’s Interest it proposes to Transfer, (ii) the purchase price in
cash at 

  

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which FR Holdings is prepared to Transfer such Interest (the “Offer Price”) and (iii) all other material terms and conditions of the proposed Transfer. The Transfer
Notice shall include an irrevocable offer to sell such Interest to SunEdison or its designees at the applicable Offer Price. SunEdison shall then have the option (the “Purchase Option”) to purchase all of such Offered
Interest at the Offer Price. The Purchase Option shall be and remain irrevocable for a period of fifteen (15) Business Days after the date the Transfer Notice is given to SunEdison (the “Transfer Period”). At any time
during the Transfer Period, SunEdison may elect to exercise the Purchase Option by giving written notice of its election to FR Holdings (the “Purchase Notice”) and in such Purchase Notice it shall fix the closing time and
place for such purchase, which shall in any event not be earlier than five (5) Business Days after the date of the delivery of the Purchase Notice nor more than fifteen (15) Business Days after the expiration of the Transfer Period.

  

	 	(ii)	 As an alternative to exercising the Purchase Option, during the Transfer Period SunEdison may elect to require that, as a condition to the consummation
of the proposed Transfer by FR Holdings, the Competitor Company agree to purchase all of SunEdison’s Interest, and assume all of its Capital Commitments, in each of the JV Entities at the same time and on the same terms as the purchase of the
Interest of FR Holdings (the “Competitor Tag-Along Right”). Accordingly, at any time during the Transfer Period, SunEdison may elect to exercise the Competitor Tag-Along Right by giving written notice of such election (a
“Competitor Tag-Along Inclusion Notice”) to FR Holdings. It shall thereafter be a condition to the consummation of the proposed Transfer of the Offered Interest by FR Holdings that the Competitor Company agree to purchase all
of SunEdison’s Interest and assume all of its Capital Commitments in each of the JV entities at the same time and on the same terms as the Transfer of the Interest of FR Holdings. Upon the consummation of such Transfer pursuant to the
Competitor Tag-Along Right, (x) the transferee shall assume all of SunEdison’s Unused Capital Commitment and SunEdison shall thereafter be relieved of its obligation to make Capital Contributions, (y) if the documentation for the
Transfer to a Competitor Company requires Transferring Investors to be liable for third party claims against any of the JV entities, such documentation shall provide that, to the extent that any such third party claims are made, which claims relate
to events preceding the consummation of such Transfer to a Competitor Company, SunEdison shall only be liable for its pro rata share (based on its Capital Commitment at the time of the event giving rise to such

  

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claim) of any such liability provided for under such documentation and (z) the documentation shall provide that, to the extent that any such claims are made against any of the JV Entities,
which claims relate to events occurring after the consummation of such Transfer to a Competitor Company and do not trigger a claim based on the breach of a representation as of the closing of the Transfer against the sellers of Interests, SunEdison
shall not be liable for any of such losses or indemnity obligations (provided, however, that other than as provided above, such provision shall not be construed to eliminate SunEdison’s undertaking to make any representations and warranties
(and related indemnities) as a seller of Interests on substantially the same terms and conditions as other selling Investors pursuant to such Transfer to a Competitor Company, and SunEdison’s liability thereunder shall be in proportion to the
proceeds to be received by SunEdison in such Transfer in respect of its Interests); provided that in no case shall such documentation relieve (1) SunEdison of any liability for losses arising as a result of any breach of this Agreement
or (2) SunEdison or any SunEdison Affiliate of any obligation under any of the Related Documents. 

  

	 	(iii)	In the event that SunEdison does not deliver a Purchase Notice or Competitor Tag-Along Inclusion Notice within the Transfer Period, or, following the delivery of a
Purchase Notice, fails to consummate the purchase of the Offered Interest in accordance with the terms and conditions set forth in the Transfer Notice within fifteen (15) Business Days following the expiration of the Transfer Period, and
provided that FR Holdings has complied with all of its obligations under this Section 2.6(c), then FR Holdings may, not later than ninety (90) days and subject to the other provisions of this Section 2.6, Transfer all
(but not less than all) of the Offered Interest to the Competitor Company on terms no less favorable to FR Holdings than those set forth in the Transfer Notice. If, at the end of such ninety (90) day period, FR Holdings has not completed the
Transfer of the Offered Interest in accordance with the foregoing, FR Holdings must again comply with the provisions of this Section 2.6(c) with respect to any Transfer. 

(d) Right of First Refusal. 
  

	 	(i)	 On and after expiration or termination of the Lockup Period (other than any termination thereof with respect to a JV Entity in connection with an IPO
of that JV Entity), in the event an Investor desires to Transfer all or any part of its Interest (the “Investor Interest”) to any Person, other than pursuant to, and in accordance

  

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with Section 2.6(c)(ii), Section 2.6(e) (as a Tag Offeree) or Section 2.6(f), such proposed Transfer shall be subject to a right of first refusal pursuant to
this Section 2.6(d) and such Investor shall first be required to deliver to FR Holdings written notice of such proposed Transfer (the “Investor Sale Notice”). The Investor Sale Notice shall describe
(i) the Interest proposed to be transferred, (ii) the purchase price at which is prepared to Transfer such Investor Interest (the “Investor Sale Price”), (iii) the identity of the proposed transferee and
(iv) all other material terms and conditions of the proposed Transfer. The Investor Sale Notice shall also include an irrevocable offer to sell the Investor Interest to FR Holdings or its designated Affiliate at the applicable Investor Sale
Price, and shall be and remain irrevocable for a period of fifteen (15) Business Days after the date the Investor Sale Notice is given to FR Holdings (the “ROFR Period”). FR Holdings may, at any time during the ROFR
Period, elect to exercise an option to acquire all of such Investor Interest by delivering written notice (the “ROFR Exercise Notice”) to the Investor of its intent to purchase the Investor Interest. The ROFR Exercise Notice
shall fix the closing time and place for such purchase, which shall in any event not be earlier than ten (10) Business Days after the date of the delivery of the ROFR Exercise Notice nor more than fifteen (15) Business Days after the
expiration of the ROFR Period. 

  

	 	(ii)	In the event that FR Holdings fails to deliver a ROFR Exercise Notice within the ROFR Period, or fails to consummate the purchase of the Investor Interest in accordance
with the terms and conditions set forth in the Investor Sale Notice within fifteen (15) Business Days following the expiration of the ROFR Period, and provided that the Investor has complied with all of its obligations under this
Section 2.6(d), then the Investor may, not later than ninety (90) days and subject to the other provisions of this Section 2.6, Transfer all (but not less than all) of the Investor Interest to a third party on the
offered terms set forth in the Transfer Notice. If, at the end of such ninety (90) day period, the Investor has not completed the Transfer of the Investor Interest in accordance with the foregoing, the Investor must again comply with the
provisions of this Section 2.6(d) with respect to any Transfer. 

 (e) Tag-Along
Rights. 
  

	 	(i)	 In the event an Investor proposes to Transfer to any Person any portion of its Interest (other than (i) following an IPO for that JV Entity,
(ii) as a distribution in kind by FR Holdings to its equity investors or (iii) in connection with a proposed Transfer to a Competitor Company in compliance with and pursuant to Section 2.6(c)),

  

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the transferring Investor (the “Selling Investor”) shall be obligated to require that the proposed transferee include an offer to each of the Investors who is not the
Selling Investor or the proposed third party transferee (collectively, the “Tag Offerees”) to include at the option of each Tag Offeree, in the sale or other Transfer to the third party transferee, a portion of the Interest
owned by each Tag Offeree determined in accordance with this Section 2.6(e). 

  

	 	(ii)	The Selling Investor shall cause such third party transferee offer to be reduced to writing (which writing shall include an offer to purchase or otherwise acquire from
the Tag Offerees a portion of the Interest owned by them, as required by this Section 2.6(e), and a time and place designated for the closing of such purchase, which time shall not be less than fifteen (15) Business Days after
delivery of such notice) and shall send written notice of such third party offer (the “Tag Inclusion Notice”) to each of the Tag Offerees in the manner specified herein, which Tag Inclusion Notice will include the material
terms and conditions of the proposed Transfer, including (a) the identity of the proposed third party transferee, (b) the proposed amount and form of consideration for such Interest, (c) the proposed Transfer date, if known and
(d) the portion of the Interest to be sold. 

  

	 	(iii)	Each Tag Offeree shall have the right (an “Inclusion Right”), exercisable by delivery of a notice (the “Tag Along
Acceptance”) to the Selling Investor at any time within fifteen (15) Business Days after receipt of the Inclusion Notice, to sell pursuant to such third party offer, and upon the terms and conditions set forth in the Inclusion
Notice, a pro rata portion of such Tag Offeree’s Interest (based on the percentage of the Selling Investor’s Interest that it is proposing to Transfer relative to its entire Interest). If a Tag Offeree fails to deliver in a timely manner a
Tag Along Acceptance to the Selling Investor, it shall be deemed to have waived any right to participate in the Transfer. 

  

	 	(iv)	The Selling Investor shall, in its sole discretion, decide whether to pursue, consummate, postpone or abandon any proposed Transfer and the terms and conditions
thereof. No Investor nor any Affiliate thereof shall have any liability to any other Investor or the applicable JV Entity arising from, relating to or in connection with the pursuit, consummation, postponement, abandonment or terms and conditions of
any such proposed Transfer except to the extent such Investor shall have failed to comply with the provisions of this Section 2.6(e). 

  

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	 	(v)	In connection with any Transfer pursuant to this Section 2.6(e), each Tag Offeree participating in such Transfer must agree to make the same
representations, warranties, covenants and indemnities as the Selling Investor; provided that (x) no such Tag Offeree shall be required to make representations and warranties or covenants or provide indemnities as to any other Investor and no
such Tag Offeree shall be required to make any representations and warranties (but, subject to clause (z), shall be required to provide several but not joint indemnities with respect to breaches of representations and warranties made by the JV
Entity or its Subsidiaries) about the business of the JV Entity or its Subsidiaries, (y) no Tag Offeree shall be liable for the breach of any covenant by any other Tag Offeree or Selling Investor and (z) notwithstanding anything in this
paragraph to the contrary, any liability relating to representations and warranties (and related indemnities), covenants or other indemnification obligations regarding the business of the JV Entity or its Subsidiaries assumed in connection with the
Transfer shall be shared by all exercising Tag Offerees electing to sell and the Selling Investor pro rata in proportion to the proceeds to be received by them in such Transfer in respect of their Interests and in any event shall not exceed the
proceeds received by such Investor in the proposed Transfer in respect of its Interests. Each Tag Offeree participating in such Transfer will be responsible for its proportionate share of the costs of the proposed Transfer to the extent not paid or
reimbursed by the proposed third party transferee. 

  

	 	(vi)	If the closing of the Transfer to the proposed third party transferee (whether or not any Tag Offeree has exercised its rights under this Section 2.6(e))
shall not have occurred within ninety (90) days after the date of the Inclusion Notice, the provisions of this Section 2.6(e) shall again be required to be complied with. 

(f) Drag-Along Rights. 
  

	 	(i)	 Notwithstanding anything contained in this Section 2.6, other than the Lockup Provisions of Section 2.6(b), to the contrary, if
FR Holdings receives an offer to purchase or otherwise desires to Transfer Interests in an arm’s-length transaction for fair market value thereof (as determined by FR Holdings) constituting at least a majority of FR Holdings’ Interest
in any or all of the JV Entities to any third party (a “Required Sale”), then FR Holdings may deliver a written notice (a “Required Sale Notice”) with respect to such Required Sale at least
fifteen (15) Business Days prior to the anticipated closing date of such Required Sale to each of the other Investors (other than the proposed third party transferee, if

  

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applicable) requiring each of such Investors to sell or otherwise Transfer a proportionate amount of its Interest in the applicable JV Entity or JV Entities at the same price and on the same
terms and conditions upon which FR Holdings is Transferring its Interest; provided that the consideration to be received by the Investors in such transaction shall be cash or the registered stock of a public company which stock is freely
tradeable and, with regard to SunEdison, SunEdison shall have the right to require the purchase of all of its Interest in the applicable JV Entity or JV Entities, as the case may be. 

 

	 	(ii)	The Required Sale Notice will include the material terms and conditions of the Required Sale, including (a) the identity of the proposed transferee, (b) the
proposed amount and form of consideration for such Interest and (c) the proposed Transfer date, if known. FR Holdings will then deliver or cause to be delivered to each other Investor copies of all transaction documents relating to the Required
Sale promptly as the same become available. 

  

	 	(iii)	 Upon receipt of a Required Sale Notice, each Investor shall be obligated to sell or otherwise Transfer a proportionate amount of its Interest
(including any Interest held by its Affiliates) as is being Transferred by FR Holdings, or in case of SunEdison, some or all of its Interest in the applicable JV Entity or JV Entities, as applicable, and participate in the Required Sale contemplated
by the Required Sale Notice, to vote, if required by law or otherwise, its Interest in favor of the Required Sale at any meeting of Investors (in their capacity as partners, members or other equity holders of a JV Entity) called to vote on or
approve the Required Sale and/or to consent in writing to the Required Sale, to waive all dissenters’ or appraisal rights, if any, in connection with the Required Sale, to enter into agreements relating to the Required Sale, to agree (as to
itself) to make to the proposed purchaser the same representations, warranties, covenants, indemnities and agreements as FR Holdings agrees to make in connection with the Required Sale, and to take or cause to be taken all other actions as may be
reasonably necessary to consummate the Required Sale; provided that (x) unless otherwise agreed by such Investor, an Investor may not be required to make representations and warranties or provide indemnities as to any other Investor, or
make any representations and warranties (but, subject to clause (z), shall be required to provide several but not joint indemnities with respect to breaches of representations and warranties made by the JV Entity or its Subsidiaries) about the
business or operations of the JV Entity or its Subsidiaries, (y) no such Investor shall be liable for the breach of any covenant by any other Investor and (z)

 

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notwithstanding anything in this paragraph to the contrary, any liability relating to representations and warranties (and related indemnities) and other indemnification obligations regarding the
business of the JV Entity or its Subsidiaries assumed in connection with the Required Sale shall be shared by all Investors pro rata in proportion to the proceeds to be received by them in such Transfer in respect of their Interests and in any event
shall not exceed the proceeds received by such Investor in the Required Sale in respect of its Interests. Upon the consummation of such Required Sale in which SunEdison sells all of its Interest, (A) the applicable transferee shall assume all
of SunEdison’s Unused Capital Commitment and SunEdison shall thereafter be relieved of its obligation to make Capital Contributions, (B) if the documentation for the Required Sale requires Transferring Investors to be liable for third
party claims against any of the JV entities, such documentation shall provide that, to the extent that any third party claims are made against any of the JV Entities, which claims relate to events preceding the consummation of such Required Sale,
SunEdison shall only be liable for its pro rata share (based on its Capital Commitment at the time of the event giving rise to such claim) of any such losses or indemnity obligations and (C) the documentation shall provide that, to the
extent that any such claims are made against any of the JV Entities, which claims related to events occurring after the consummation of such Required Sale and do not trigger a claim against the Investors based on the breach of a representation as of
the closing of the Required Sale, SunEdison shall not be liable for any of such liability provided for under such documentation (provided, however, that other than as provided above, such provision shall not be construed to eliminate
SunEdison’s undertaking to make any representations and warranties (and related indemnities) as a seller of Interests on substantially the same terms and conditions as other selling Investors pursuant to such Required Sale, and SunEdison’s
liability thereunder shall be in proportion to the proceeds to be received by SunEdison in such Required Sale in respect of its Interests); provided that in no case shall such documentation relieve (1) SunEdison of any liability for
losses arising as a result of any breach of this Agreement or (2) SunEdison or any SunEdison Affiliate of any obligation under any of the Related Documents. 

 

	 	(iv)	 FR Holdings shall, in its sole discretion, decide whether to pursue, consummate, postpone or abandon any Required Sale and, subject to this
Section 2.6(f), the terms and conditions thereof. No Investor nor any Affiliate of any such Investor shall have any liability to any other Investor or a JV Entity arising from, relating to or in connection with the pursuit, consummation,
postponement, 

  

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abandonment or terms and conditions of any Required Sale except to the extent such Investor shall have failed to comply with the provisions of this Section 2.6(f).

 (g) Change of Control of SunEdison; Call Option. 

 

	 	(i)	In the event of a change of control of SunEdison (which shall not include a change of control of MEMC) which could reasonably be expected to have a material adverse
effect on the business, assets, properties, results of operations or financial condition of the JV Entities (taken as a whole), then FR Holdings may elect, in its sole discretion, to purchase at fair market value SunEdison’s Interest (including
any Interest held by its Affiliates) in the JV Entities; provided that FR Holdings shall also thereby assume all of the remaining SunEdison Capital Commitments (and the Capital Commitments of such Affiliates, if applicable). The right to purchase
the Interest pursuant to this Section 2.6(g) is referred to as a “Call Option.” For purposes of this Section 2.6(g), “change of control” shall mean the occurrence of any of the
following events: (a) any stock sale or any consolidation, merger, statutory share exchange, recapitalization or other business combination as a result of which Persons who were equity holders of SunEdison as of the date hereof beneficially own
less than a majority of the combined voting power or the economic interest of SunEdison (or the surviving or resulting entity), whether in one transaction or a series of related transactions); (b) a sale, lease, exchange or other transfer (in
one transaction or a series of related transactions) of all or substantially all of the assets of SunEdison; (c) the approval of any plan or proposal for the liquidation or dissolution of SunEdison; (d) the occupation of a majority of the
seats (other than vacant seats) on the board of directors (or similar governing body) of SunEdison by directors who were not (i) directors of SunEdison as of the date hereof (ii) appointed by directors who were directors as of the date
hereof or by directors so appointed or (iii) nominated or approved for election to the board of directors by directors described in the preceding clause (i) or (ii) or by MEMC Electronic Materials, Inc. or its successor; or
(e) any “person” (as such term is used in Sections 13(d) and 14(d)(2) of the Securities and Exchange Act of 1934) or group of persons (as so used), other than MEMC, its successor or any company a majority of whose outstanding stock
entitled to vote is owned directly or indirectly by MEMC, is or becomes the “beneficial owner” (as determined pursuant to Rule 13d-3 under the Securities and Exchange Act of 1934), directly or indirectly, of a majority of SunEdison’s
then outstanding equity interests. 

  

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	 	(ii)	FR Holdings shall exercise the Call Option by delivery to SunEdison, within fifteen (30) Business Days following public announcement of the consummation of the
change of control, a written notice (the “Call Option Notice”) specifying the time and place of the closing of such purchase, which shall be at least fifteen (15) Business Days following delivery of the Call Option
Notice. SunEdison shall be required to make customary representations and warranties regarding such SunEdison’s good title to, and the absence of liens, encumbrances and restrictions on the sale of, such Interest. In the event the Parties are
unable to agree on “fair market value,” such shall be determined by an independent appraisal company selected by the Parties whose cost shall be shared by the Parties. 

 

	 	(iii)	Upon the consummation of any such Call Option, (x) FR Holdings shall assume all of SunEdison’s then Unused Capital Commitment and SunEdison shall thereafter
be relieved of its obligation to make Capital Contributions, (y) the parties shall enter into appropriate documentation to provide that, to the extent that any third party claims are made against any of the JV Entities, which claims relate to
events preceding the consummation of such Call Option, SunEdison shall only be liable for its pro rata share (based on its Capital Commitment at the time of the event giving rise to such claim) of any loss or obligation relating to such claim
and (z) the documentation shall provide that, to the extent that any such claims are made against any of the JV Entities, which claims relate to events occurring after the consummation of such Call Option, SunEdison shall not be liable
therefor; provided that in no case shall such documentation relieve (1) SunEdison of any liability for losses arising as a result of any breach of this Agreement or (2) SunEdison or any SunEdison Affiliate of any obligation under
any of the Related Documents. 

 (h) Registration Rights. Exhibit M hereto sets forth
certain registration rights to which the Investors shall be entitled in respect of the Interests held by them in each of the JV Entities. 

(i) Joinder Agreement. In addition to the transfer restrictions set forth in this Section 2.6 and in
any JV Agreement, it shall be a condition to the consummation of any Transfer of any Interest that the transferee executes a Joinder Agreement. 

ARTICLE 3. Project Development. 

3.1 Acquisition and/or Transfer of Projects. 

(a) Inclusion of Projects in the Registry. 

 

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	 	(i)	SunEdison hereby covenants to use its commercially reasonable efforts to offer to the JV Entities at least that number and size of Projects so as to meet or exceed the
Development Commitment. In furtherance thereof, from time to time and at any time SunEdison may deliver to the applicable JV Entities a written notice describing a Project Submittal Tranche for review and approval. No Project may form all or part of
a Project Submittal Tranche unless such Project meets or exceeds the Project Parameters. Each such Project shall count towards the satisfaction of the Development Commitment, except as may be provided in the definition thereof.

  

	 	(ii)	Concurrent with the delivery of the notice describing a Project Submittal Tranche, SunEdison shall deliver or otherwise make available to the applicable JV Entity
(a) the Mandatory Project Due Diligence for each Project identified as being part of such Project Submittal Tranche and (b) an estimated timeline for the construction of each Project included in the Project Submittal Tranche (the
“Expected Project Timeline”), which shall set forth the date on which construction of such Project is expected to begin, as well as the dates on which the Project is expected to reach Substantial Completion and Final
Completion (as such terms are defined in the form of EPC Agreement attached hereto as Exhibit D). To the extent practicable, SunEdison agrees to provide information relating to Projects that it expects to include in a Project Submittal
Tranche to the applicable JV Entity and FR Holdings for an initial review (the “Initial Review”) in advance of such time as SunEdison commences construction of such Projects. Such information may, but shall not be required
to, include preliminary pricing for such Projects based upon the relevant information available at the time (including applicable information on solar resource, project location, feed-in-tariff, PPA and development milestones). To the extent
practicable, the JV Entities agree to commence the diligence process promptly upon the receipt of such preliminary information and will prosecute such due diligence efforts in good faith to completion in a timely manner. Set forth on Schedule II to
the Business Plan is an indicative, non-binding list of Projects which SunEdison presently intends to include in future Project Submittal Tranches, as well as the date on which SunEdison expects each such Project to be ready for an Initial Review
and the expected COD of each such Project. 

  

	 	(iii)	 Following the date SunEdison delivers written notice of an applicable Project Submittal Tranche covering each Project, and until expiration of the
Exclusive Development Time Frame for each Project or rejection of the Project Submittal Tranche, 

  

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SunEdison hereby agrees that neither SunEdison nor any of its Subsidiaries shall, nor shall it authorize or permit any of its or their officers, directors, employees or any investment banker,
financial advisor, attorney, accountant or other representative or agent retained by it or any of its Subsidiaries or agents to (A) solicit, initiate or knowingly encourage or facilitate any submission of any inquiries, indications of interest,
proposals or offers from any corporation, partnership, person, entity or group other than the JV Entities or any of their Affiliates (collectively, “Third Parties”) concerning the purchase or sale of such Project (a
“Competing Transaction”), (B) have any discussions with or provide any confidential information or data to any Third Party relating to a Competing Transaction, or engage in any negotiations with a Third Party concerning
a Competing Transaction, or knowingly facilitate any effort or attempt by a Third Party to make or implement a Competing Transaction, (C) approve or recommend, or propose to approve or recommend, any Competing Transaction with any Third Party,
(D) approve or recommend, or propose to approve or recommend, or execute or enter into, any letter of intent, agreement in principle, joint venture agreement, asset purchase or share exchange agreement, option agreement or other similar
agreement related to any Competing Transaction with any Third Party or (E) propose or agree to do any of the foregoing; provided that in the case of Projects identified in Schedule I to the Business Plan, the provisions of this Section shall
apply from and after the date hereof until expiration of the Exclusive Development Time Frame for each such Project. 

  

	 	(iv)	 Prior to the expiration of the applicable Exclusive Development Time Frame, the applicable JV Entity shall provide notice to SunEdison of its
acceptance or rejection of the Project Submittal Tranche. Acceptance of a Project Submittal Tranche shall be deemed to be acceptance of each Project included therein, and each Project so accepted shall automatically be added to the Registry as of
the date of such JV Entity’s notice. Acceptance of a Project Submittal Tranche shall constitute the JV Entity’s approval of all of the Mandatory Project Due Diligence in respect of the Projects included in such Project Submittal Tranche;
provided that in the event that SunEdison was unable to deliver any part of the Mandatory Project Due Diligence required to be delivered pursuant to Section 3.1(a)(ii) at such time as the Project Submittal Tranche was submitted to
the applicable JV Entity and such JV Entity (or FR Holdings) provided notice of such deficiency prior to the acceptance of such Project Submittal Tranche, then (a) the Mandatory Project Due Diligence for such Project shall not be deemed to have
been approved at the time the JV Entity accepted 

  

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such Project into the Registry and (b) it shall be a further condition to the Project JV Entity’s purchase obligations under Section 3.2 with respect to such Project that
SunEdison provide such materials. 

  

	 	(v)	Each of the JV Entities hereby acknowledges that, with respect to those Projects for which it has been able to perform a satisfactory Initial Review and which meet or
exceed the Project Parameters, and provided that (a) SunEdison does not make any material changes to such information included in the Initial Review and (b) there are sufficient Unused Capital Commitments to support the funding of such
Projects, it is its non-binding intent to accept such Projects into the Registry at the time such Projects are included in a Project Submittal Tranche and all Mandatory Project Due Diligence relating thereto has been made available.

  

	 	(vi)	The applicable JV Entity shall be obligated to purchase (or to cause a Project Company to effect such purchase) each of the Projects placed on the Registry at the
applicable Purchase Price set forth in the EPC Agreement (and as reflected in the Project Pricing Summary Sheet), subject only to the satisfaction of the conditions precedent set forth in Section 3.2 (and, if applicable, to the delivery
of any outstanding diligence materials described in Section 3.1(a)(iv)) and the SunEdison EPC Party’s performance of its obligations under the EPC Agreement, in respect of such Project. The Purchase Price for a Project shall be due
and payable in accordance with the terms and conditions of the applicable EPC Agreement to be executed and delivered in connection with each such Project pursuant to Section 3.2. Failure to satisfy the conditions precedent set forth in
Section 3.2 with respect to one or more Projects constituting a Project Submittal Tranche shall not impair or otherwise diminish the JV Entity’s obligation to purchase the remaining Projects constituting such Project Submittal
Tranche unless the remaining Projects in such Project Submittal Tranche, taken as a whole, aggregate not less than [*****] ([*****]) megawatts of electric generating capacity. SunEdison may sell, transfer or finance any and all of the Projects
identified in any Project Submittal Tranche not accepted by the JV Entities with any Person free from any commitments or obligations to the JV Entities pursuant to this Agreement or any of the Related Documents. 

 

	 	(vii)	 With the written consent of the applicable JV Entity in each instance, SunEdison may add one or more Projects to a Registry or may remove one or more
Projects from a Registry and replace such Project or Projects in such Registry with substitute Projects. After a Project is so removed from a Registry, SunEdison may sell, 

 

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transfer or finance such Project with any third party free from any commitments or obligations to the JV Entities pursuant to this Agreement or any of the Related Documents.

 (b) Diversification. 

 

	 	(i)	The Parties hereby agree to attempt to achieve a mix of Projects in the Registry such that, unless mutually agreed by the Parties, at such time as the Parties shall
have fully invested their Capital Commitments in the JV Entities, no more than [*****]% of the Projects shall be located in Italy and no less than [*****]% of the Projects shall be located in the United States, in each case as measured by the
aggregate Purchase Prices of such Projects; provided, however, that in no event shall more than [*****]% of the Projects constructed pursuant to this Agreement be in Italy (as measured by the aggregate Purchase Prices of the Projects
at such point in time that the Parties have fully invested their Capital Commitments). 

  

	 	(ii)	In the event that (x) the Rovigo Project is completed and fully paid for pursuant to this Agreement, (y) at least [*****] megawatts of non-Italy Projects that
meet or exceed the Project Parameters set forth in the Business Plan (including Target IRR) are not submitted to the JV Entities by the second anniversary of the date hereof, and (z) FR Holdings is not then in material breach of this Agreement
or any of the Related Documents, FR Holdings may elect, in its sole discretion, to purchase [*****]% of SunEdison’s Interest (including any Interest held by its Affiliates) in the JV Entities for an aggregate purchase price of $[*****]. The
right to purchase such Interest pursuant to this Section 3.1(b)(ii) is referred to as the “FR Purchase Option”. FR Holdings shall exercise the FR Purchase Option by delivery to SunEdison, within fifteen
(15) Business Days of the second anniversary of the date hereof, a written notice specifying the time and place of the closing of such purchase, which shall in any event not be earlier than ten (10) Business Days after the delivery of such
notice. 

  

	 	(iii)	 Upon the consummation of the FR Purchase Option, (x) FR Holdings shall assume all of SunEdison’s then Unused Capital Commitment and SunEdison
shall thereafter be relieved of its obligation to make Capital Contributions, (y) the parties shall enter into appropriate documentation to provide that, to the extent that any third party claims are made against any of the JV Entities, which
claims relate to events preceding the consummation of such FR Purchase Option, SunEdison shall only be liable for its pro rata share (based on its Capital Commitment at the time of the event

  

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giving rise to such claim) of any losses or indemnity obligations, and (z) the documentation shall provide that, to the extent that any such claims are made against any of the JV Entities,
which claims related to events occurring after the consummation of such FR Purchase Option, SunEdison shall not be liable for any of such losses or indemnity obligations; provided that in no case shall such documentation relieve
(1) SunEdison of any liability for losses arising as a result of any breach of this Agreement or (2) SunEdison or any SunEdison Affiliate of any obligation under any of the Related Documents. 

(c) Initial Projects. Schedule I to the Business Plan shall be deemed to constitute a Project Submittal Tranche as
of the Closing Date and this Agreement shall serve as written notice thereof for all purposes of this Agreement. 

(d) Timing of Submission of Project Submittal Tranches. Without the prior consent of FR Holdings, SunEdison shall
not submit to the JV Entities for their review more than 150 megawatts of Projects that have an expected COD prior to December 31, 2010. 

3.2 Conditions to a JV Entity’s Purchase Obligations. 

(a) Once a Project has been accepted to the Registry, the JV Entity’s obligation to make the first Milestone Payment
for a Project shall be subject to SunEdison’s delivery to the Project JV Entity of a Notice of Completion of CPs in respect of such Project certifying the satisfaction of the following conditions precedent: 

 

	 	(i)	SunEdison shall have received and delivered to the Project JV Entity an independent engineer’s report for the Project in form and substance reasonably satisfactory
to the Project JV Entity, which report shall include a review of the site climate, the electrical and mechanical system components, the operations and maintenance program, and the equipment and equipment warranties and an estimate for the
system’s expected annual electricity production; 

  

	 	(ii)	SunEdison shall have obtained all permits, licenses and third party approvals necessary for the operation and construction of the Project, other than such permits,
licenses and third party approvals that SunEdison or the Project JV Entity will obtain or cause to be obtained in the ordinary course of business; 

  

	 	(iii)	SunEdison shall have delivered to the Project JV Entity single line system drawings for the Project in form and substance reasonably satisfactory to the Project JV
Entity; 

  

	 	(iv)	To the extent applicable and appropriate for Projects not yet constructed, interconnection agreements for such Project shall be in full force and effect and SunEdison
shall have specified any related upgrades to the electric grid or utility sub-station associated with the construction of such Project; 

  

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	 	(v)	SunEdison shall have procured or arranged to procure the equipment essential to the construction of the Project (provided that, with respect to panels and
inverters, this clause (e) shall be deemed to have been met if SunEdison shall have procured or arranged to procure [*****]% of the panels and inverters essential for the construction of such Project and shall have a good faith reason to
believe it can procure, in each case from Approved Tier 1 Vendors, the remaining panels and inverters essential for the construction of the Project); 

  

	 	(vi)(A)	With respect to any Project located in the United States, SunEdison shall have entered into PPAs for the electricity to be generated by such Project and (B) with
respect to any Project located in any other Targeted Country, SunEdison shall have (1) obtained reservations, if applicable and available, for locations subject to a feed-in tariff or (2) with respect to any Project located in Spain or
Italy, confirmed grid capacity and availability with respect to a feed-in tariff at the location for such Project; 

  

	 	(vii)	SunEdison shall have obtained commitments or reservations for, or shall otherwise have requested, all applicable government grants, credits or other incentives for such
Project, the receipt of which may be conditioned upon the occurrence of the COD; 

  

	 	(viii)	For Projects for which a special purpose vehicle established by SunEdison or its Affiliate is proposed to be transferred to the Project JV Entity (or Project Company,
as applicable), such special purpose vehicle shall be free and clear of all liabilities and obligations, liens, encumbrances and restrictions (including any indebtedness) and shall hold no assets, rights or properties other than those which have
been specifically identified in writing to the Project JV Entity as part of the Mandatory Project Due Diligence; 

  

	 	(ix)	Since the time the Mandatory Project Due Diligence relating to such Project was approved by the Project JV Entity, there shall have been no material changes to any of
the information or documents included therein, other than such changes as the Project JV Entity shall have approved in writing; and 

  

	 	(x)	 Each of the EPC Agreement and O&M Agreement shall be substantially final and shall be in a form that is, in the reasonable opinion of the Project
JV Entity, appropriate in order to obtain 

  

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Project Debt Financing for such Project upon competitive market terms and at a level consistent with the level of expected Project Debt Financing set forth in the Base Case Model applicable to
such Project. With respect to the EPC Agreement, each of the Subcontractor Performance Security (as such term is defined in the form of EPC Agreement) and the underlying subcontractor warranty to which it relates shall be final and in a form and of
a substance that is acceptable to the Project JV Entity. 

 (b) Promptly following the receipt
of the Notice of Completion of CPs and prior to the expiration of the Confirmation Window, the Project JV Entity shall, to the extent necessary, seek to verify that that the above conditions have, in fact, been satisfied with respect to a Project
and SunEdison shall promptly cooperate with the Project JV Entity in order to provide it with such additional information as may be reasonably requested in furtherance thereof. 

(c) Following such verification, if any, and prior to the expiration of the Confirmation Window, (i) the Project JV
Entity shall deliver the Confirmation Notice for such Project, (ii) the Project JV Entity (or a Project Company designated by the Project JV Entity) and the SunEdison EPC Party shall each execute and deliver, in respect of such Project, an EPC
Agreement and an O&M Agreement (each in form mutually acceptable to SunEdison and FR Holdings) (iii) the Project JV Entity shall execute and deliver a Project JV Entity Guaranty for such Project and (iv) SunEdison shall execute and
deliver a SunEdison Guaranty for such Project. For certain Projects, SunEdison may transfer to the Project JV Entity a special purpose vehicle owning the Project. In the event this transfer occurs and an EPC Agreement or an O&M Agreement have
already been entered into with a Project Company, concurrently with the conveyance by SunEdison of the ownership of such special purpose vehicle to the Project JV Entity such special purpose vehicle shall become the Project Company and the initial
Project Company’s rights and obligations in respect of the applicable EPC Agreement or O&M Agreement shall be assigned to such special purpose vehicle. 

(d) Within ten (10) Business Days following the delivery of the Confirmation Notice, the Project Company shall remit
the first Milestone Payment by wire transfer of immediately available funds in accordance with wire instructions provided by the SunEdison EPC Party. 

(e) In the event SunEdison shall fail to deliver to the applicable Project JV Entity a Notice of Completion of CPs in
respect of a Project on or prior to date which is ninety (90) days after the date such Project was added to the Registry pursuant to Section 3.1(a)(iv) (the “Outside Date”), the Project JV Entity shall have
the right to remove such Project from the Registry. The Project JV Entity may exercise such right solely by delivery of a written notice to SunEdison after the Outside Date and such removal shall be effective on the first Business Day following
SunEdison’s receipt of such notice. No JV Entity or Affiliate thereof shall have any obligation hereunder with respect to a Project that has been removed from the Registry pursuant to this Section 3.2(e). 

 

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 3.3 Purchase Price and Financial Key Terms. 

(a) Project Pricing. Upon the submission by SunEdison to a JV Entity of a Project Submittal Tranche, SunEdison and
such JV Entity shall review the Target Purchase Price for each Project included therein. SunEdison and the JV Entity shall then confirm such Target Purchase Prices as part of the review of the Mandatory Project Due Diligence. The acceptance of a
Project Submittal Tranche into the Registry shall be deemed to be approval of the Target Purchase Prices for the underlying Projects. 

(b) Payment of the Purchase Price. Each EPC Agreement shall provide for the payment of three Milestone Payments by
the Project Company to the SunEdison EPC Party. The first Milestone Payment shall be in the amount of [*****] percent ([*****]%) of the Purchase Price for the applicable Project. The second Milestone Payment shall be in the amount of [*****] percent
([*****]%) of the Purchase Price. The final Milestone Payment shall be in the amount of [*****] percent ([*****]%) of the Purchase Price. The second Milestone Payment shall be subject to adjustment in accordance with subsection (d) below. Each
such Milestone Payment shall be made via wire transfer of immediately available funds in accordance with wire instructions provided by the SunEdison EPC Party. In accordance with and subject to the provisions of Article 2 of this Agreement
and the applicable provisions of the JV Entity Agreements, the Investors shall make Capital Contributions to the applicable JV Entity pursuant to one or more Capital Call Notices in the amounts, if any, as necessary in order to make the Milestone
Payments. 
 (c) First Milestone Payment. As set forth in Section 3.2, the Project Company
shall remit the first Milestone Payment to the SunEdison EPC Party within ten (10) Business Days following the delivery of the Confirmation Notice. 

(d) Escrow Amount. Each Project Pricing Summary Sheet shall set forth the Escrow Amount for the applicable Project.
The Escrow Amount shall be deducted from the second Milestone Payment and, concurrently with the occurrence of the COD of a Project, the Project Company shall deposit into escrow the Escrow Amount for such Project. Such escrow shall be established
pursuant to an escrow agreement to be entered into by the Project Company and the SunEdison EPC Party in connection with the applicable EPC Agreement (each an “Escrow Agreement”). Subject to the terms of the applicable Escrow
Agreement, in the event the Project Company (i) obtains the proceeds of Project Debt Financing for such Project on or before the date which is three (3) months after the delivery by the Project Company of the Substantial Completion
Certificate (as such term is defined in the EPC Agreement) for such Project, the entire Escrow Amount for such Project will be released to the SunEdison EPC Party, (ii) does not obtain the proceeds of Project Debt Financing for such Project
prior to the date which is six (6) months after the Project Company’s delivery of the Substantial Completion Certificate for such Project, all of the Escrow Amount for such Project will be released to the Project Company or
(iii) obtains the proceeds of Project Debt Financing for such Project on a date which is more than three (3) months but less than six (6) months after the Project Company’s delivery of the Substantial Completion Certificate for
such Project, then (A)
  

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the Escrow Amount shall be allocated between the SunEdison EPC Party and the Project Company based upon a fraction (the “Disbursement Fraction”), the numerator of which
shall be the number of days having elapsed subsequent to the date which is three (3) months after Project Company’s delivery of the Substantial Completion Certificate for such Project and the denominator of which is the total number of
days between the date which is three (3) months after Project Company’s delivery of the Substantial Completion Certificate for such Project and the date which is six (6) months after Project Company’s delivery of the Substantial
Completion Certificate for such Project and (B) the portion of the Escrow Amount to be disbursed to the Project Company shall be the product of the Escrow Amount multiplied by the Disbursement Fraction, and the balance of such Escrow Amount
shall be disbursed to SunEdison. The Escrow Amount shall also be subject to withdrawal by the SunEdison EPC Party or its Affiliates in connection with the payment of the SunEdison Carrying Costs pursuant to Section 5.2(b). 

3.4 Financing. 

(a) Project Debt Financing. Each JV Entity and each of its related Project Companies, and FR Holdings with respect
to assisting the JV Entities and Project Companies, shall use commercially reasonable efforts to obtain a commitment in a timely manner from one or more financial institutions or other third-parties to provide the Project Debt Financing for each of
the Projects accepted to the Registry up to the maximum amount contemplated in the Business Plan. The Parties will cooperate with each other in connection with the financing of the Projects in order to keep SunEdison apprised as to the debt
financing process and material loan terms and the JV Entities shall promptly respond to any inquiries from SunEdison as to the status of any efforts to obtain Project Debt Financing; provided, however, that notwithstanding SunEdison’s agreement
to cooperate with the JV Entities in connection with the Project Debt Financing, the JV Entities shall have the sole and exclusive responsibility for obtaining the Project Debt Financing for each Project and the JV Entities shall be obligated to
purchase a Project once accepted to the Registry without regard to the availability or lack of availability of Project Debt Financing for such Project, subject to the aggregate amount of Unused Capital Commitments. 

(b) Financial Institution Contacts. The JV Entities shall provide notice to SunEdison of initial conversations or
presentations with a financial institution with regard to any Project Debt Financing. SunEdison shall have the right to approve, which approval shall not be unreasonably withheld or delayed, the presentation materials and scope of information about
the Projects to be provided to a financial institution. The JV Entities shall ensure that each such financial institution signs a customary non-disclosure agreement with respect to the Projects and related financial and other due diligence
information. The JV Entities shall notify SunEdison of any material correspondence with financial institutions relating to the Project Debt Financing, and the JV Entities shall invite (or cause to be invited) SunEdison to participate in any
significant meetings with such financial institutions. Notwithstanding the foregoing, with respect to any Project, SunEdison’s approval right pursuant to this Section 3.4(b) shall be of no further effect upon the payment in full by
the Project JV Entity of the third Milestone Payment. 
  

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 (c) Pre-COD Working Capital Financing. The Parties will cooperate
with each other to obtain a Pre-COD Working Capital Facility on terms and conditions mutually acceptable to SunEdison and FR Holdings from one or more financial institutions approved by SunEdison and FR Holdings to support the working capital
requirements of SunEdison and the JV Entities in connection with the development and construction of a Project (“Pre-COD Working Capital”). In order to facilitate consummation of the Pre-COD Working Capital Facility,
SunEdison shall enable the financial institution(s) providing such facility to obtain a lien against the assets of the SunEdison Affiliates holding such in-process Project, as applicable, which shall, in each case, secure amounts not to exceed the
first Milestone Payment plus the amount of the Pre-COD Working Capital provided to such SunEdison EPC Party or SunEdison Affiliate. The Pre-COD Working Capital Facility shall provide for the release of the lien on the assets of a SunEdison EPC Party
in connection with the closing of the sale of the Project to the JV Entity at the COD pursuant to the EPC Agreement, provided, however, that repayment of such debt outstanding under such lien shall at all times remain the obligation of the JV
Entity, and such JV Entity shall indemnify SunEdison, the SunEdison EPC Party and any other SunEdison Affiliates, with respect to the JV Entity’s failure to repay or obtain the release of such lien. Subject to the terms and conditions of the
Pre-COD Working Capital Facility, (i) the Project JV Entity may borrow under the Pre-COD Working Capital Facility to fund the first Milestone Payment to be made in respect of a Project pursuant to the applicable EPC Agreement and (ii) the
SunEdison EPC Party or a SunEdison Affiliate may borrow under the Pre-COD Working Capital Facility in order to fund the development and construction of such Project; provided, however, that in the event the SunEdison EPC Party or a SunEdison
Affiliate borrows any amount under such Pre-COD Working Capital Facility, (x) the repayment of such amount, including any interest thereon, shall be the sole responsibility of such SunEdison EPC Party or SunEdison Affiliate and (y) the
Project JV Entity shall not provide any indemnity to SunEdison, the SunEdison EPC Party or any other SunEdison Affiliates with respect to such amounts or the failure to release any lien granted or created in connection therewith. 

(d) Post-COD Working Capital Facility. The Parties will also cooperate with each other to obtain a Post-COD Working
Capital Facility on terms and conditions acceptable to FR Holdings (in its sole discretion) from one or more financial institutions to support the working capital requirements of the Project JV Entity in connection with the first year(s) of
operation of each Project or to satisfy Purchase Price obligations (“Post-COD Working Capital”). In the event that a Post-COD Working Capital Facility is available to the Project JV Entity upon COD or at any time within three
(3) months thereafter, and such Post-COD Working Capital Facility meets or exceeds 100% of the anticipated Project Debt Financing set forth in the Pricing Model for such Project, the Target Purchase Price shall be adjusted in accordance with
the Pricing Model such that the Project Company shall pay to the SunEdison EPC Party, within ten (10) Business Days following the availability of such Post-COD Working Capital Facility, the amount equal to (I) [*****], where: 

 

	 	(i)	X equals the amount raised under such Post-COD Working Capital Facility for such Project; 

 

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	 	(ii)	Y equals [*****] minus the imputed daily interest rate of the Post-COD Working Capital Facility; and 

 

	 	(iii)	Z equals [*****] minus the number of days elapsed from COD to the funding of the Post-COD Working Capital Facility for such Project; 

minus (II) [*****] percent ([*****]%) of any arrangement, commitment or similar fees incurred in connection with such Post-COD Working
Capital Facility within 90 days of entering into such Post-COD Working Capital Facility. 
 (e) Project Debt
Financing for the Rovigo Project. In the event that the Rovigo Project is added to the Registry pursuant to Section 3.1(a) and SunEdison reasonably determines that SunEdison Reserve International is not utilizing commercially
reasonable efforts to obtain Project Debt Financing on terms reasonably acceptable to SunEdison with respect to the Rovigo Project, or in the event SunEdison Reserve International is otherwise unable to obtain Project Debt Financing for the Rovigo
Project in a timely manner, and SunEdison delivers to SunEdison Reserve International a commitment letter (which letter shall contain customary provisions with respect to the conditionality of such financing) to provide 100% of the Project Debt
Financing for the Rovigo Project which sets forth financial terms for such indebtedness which contain terms equally or more favorable than the terms described in the Base Case Model applied to the Rovigo Project and Project Pricing Summary Sheet for
the Rovigo Project, then SunEdison Reserve International shall use its best efforts to close on such Project Debt Financing delivered by SunEdison as promptly as practicable in order to accelerate the release of the Escrow Amount in respect of the
Rovigo Project and maximize the payment thereof to the SunEdison EPC Party. SunEdison shall (i) keep FR Holdings reasonably informed as to the status of SunEdison’s discussions with potential financing sources for the Rovigo Project and
(ii) provide notice to FR Holdings of all meetings with such potential financing sources and a reasonable opportunity to participate in such meetings. In the event SunEdison Reserve International is using commercially reasonable efforts to
obtain Project Debt Financing for the Rovigo Project on terms reasonably acceptable to SunEdison in a timely manner, SunEdison shall use commercially reasonable efforts to cooperate with and lend assistance to SunEdison Reserve International in
order to obtain such financing. Other than as agreed by and between SunEdison and FR Holdings as of the date hereof, and provided that SunEdison Reserve International is using commercially reasonable efforts to obtain the requisite Project Debt
Financing, and other than Banco Santander and its Affiliates, SunEdison will not separately contact any other potential financing sources with regard to the Rovigo Project without SunEdison Reserve International’s prior consent. For the
avoidance of doubt, this Section 3.4(e) shall only apply in the event that the Rovigo Project is added to the Registry pursuant to Section 3.1(a). 
  

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 (f) VAT Financing. The Parties will cooperate with each other to
obtain financing relating to the value added tax (“VAT”), which is built into the Base Case Model. SunEdison may, but shall not be obligated to, provide a VAT borrowing facility in the event that VAT financing not be
available from financial institutions or on terms and conditions acceptable to SunEdison. Any such financing provided by SunEdison would be provided by SunEdison on terms and conditions satisfactory to SunEdison in its sole and absolute discretion.

 3.5 Exclusivity. 

During the Investment Exclusivity Period, FR Holdings (for the Fund and for itself and its portfolio companies) and each of the JV
Entities and Joinder Parties hereby agrees that neither it nor any of its Subsidiaries or in the case of FR Holdings, the Fund or its portfolio companies, shall, without SunEdison’s prior written consent, make any investment, loan, credit
support agreement or guaranty for or in any other solar photovoltaic power generation projects in any Targeted Country (a “Competing Investment”), nor shall it execute or enter into any letter of intent, agreement, joint
venture, asset purchase or share exchange agreement, option, or other similar agreement, related to any Competing Investment. Notwithstanding the foregoing, a Competing Investment shall not be deemed to include (a) investments in equity
interests or loans, credit support agreements or guarantees of an operating company which has less than (i) [*****] ([*****]) megawatts of solar photovoltaic power generation projects in development or operation in Targeted Countries and
(ii) [*****]% of its aggregate annual revenues generated by solar photovoltaic power generation projects (and, at the time of such investment, no written business plan has been received by FR Holdings indicating that the expectation exists that
such entity will develop operations or investments of such magnitude) in Targeted Countries or (b) investments in or loans, credit support agreements or guarantees of a portfolio of energy projects where the value of the solar photovoltaic
power generation projects in the Targeted Countries is less than [*****]% of the then fair market value of the portfolio. Compliance with the exceptions referred to in the previous sentence shall be tested only at the time of the relevant
investment, loan, agreement or guarantee and shall be based on information and financial statements then most recently available. 
 ARTICLE
4. Representations and Warranties. 
 4.1 Representations and Warranties of SunEdison. 

SunEdison hereby represents and warrants as follows: 

(a) Existence; Good Standing; Limited Liability Company Authority. SunEdison is duly organized, validly existing
and in good standing under the laws of the State of Delaware. SunEdison is duly qualified to do business in each jurisdiction in which the nature of its properties or its business requires such qualification and in which the failure to so qualify
would materially adversely affect its business or financial condition. SunEdison has all requisite power and authority to own, operate and lease its properties and to carry on its business as now conducted. SunEdison is not a Non-Qualifying Entity.

  

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 (b) Authorization, Validity and Effect of Agreement. SunEdison
has the requisite limited liability company power and authority to execute and deliver this Agreement and to consummate the transactions contemplated by this Agreement. The execution and delivery of this Agreement and the consummation of the
transactions contemplated hereby have been duly authorized by all requisite limited liability company action on its behalf. SunEdison has duly executed and delivered this Agreement and, assuming due authorization, execution and delivery hereof by
the other Parties hereto, this Agreement constitutes a valid and legally binding obligation of SunEdison, enforceable against SunEdison in accordance with the terms of this Agreement, subject to applicable bankruptcy, insolvency, fraudulent
transfer, reorganization, moratorium or other similar laws relating to creditors’ rights and general principles of equity. 

(c) No Conflict. The execution and delivery of this Agreement by SunEdison does not and will not, and the
consummation by SunEdison of the transactions contemplated hereby will not (i) conflict with or result in a breach or violation of any provision of its limited liability company organizational documents; (ii) violate, conflict with, result
in a breach of any provision of, constitute a default (or an event which, with notice or lapse of time or both, would constitute a default) under, result in the termination or in a right of termination or cancellation of any of the terms, conditions
or provisions of any of its material agreements; or (iii) contravene or conflict with, or constitute a violation of any provision of, or trigger any liability or obligation under, any law, order or government permit applicable to or binding on
SunEdison, other than, in the case of clauses (ii) and (iii), any such violations, conflicts, breaches, defaults, terminations, cancellations, liabilities, obligations, Liens, or contraventions that, individually or in the aggregate, have not
had and are not reasonably likely to have a material adverse effect on SunEdison. 
 (d) Litigation. There
are no actions, suits, claims, arbitrations, audits, hearings, investigations, litigation, suits or proceedings (whether civil, criminal, administrative, investigative or appellate) pending or, to its knowledge, threatened, against SunEdison or any
of its Subsidiaries or any of their respective properties, that, individually or in the aggregate, have had or are reasonably likely to have a material adverse effect on its abilities to fully perform its obligations under this Agreement.

 (e) Securities Law Matters. 

 

	 	(i)	 SunEdison understands that the Interests are being issued in reliance on an exemption from the registration requirements of the Securities Act of 1933,
as amended (“Securities Act”) for an offer and sale of securities that does not involve a public offering and have not been registered under the Securities Act or with any securities regulatory authority of any state of the
United States or other jurisdiction and, therefore, that such interests (and all securities issued in exchange therefor or in substitution thereof) cannot be resold in the absence of such registration except pursuant to an exemption from, or in a
transaction not subject to, such 

  

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registration requirements. SunEdison agrees that it shall not transfer any of the Interests except in a transaction registered or exempt under the Securities Act. 

 

	 	(ii)	SunEdison is an “accredited investor” within the meaning of Rule 501 of the Securities Act and is able to bear the economic risks of such investment for an
indefinite period of time. 

  

	 	(iii)	SunEdison will acquire the Interests for its own account and not with a view to any distribution (within the meaning of the Securities Act) thereof or with any present
intention of offering or selling any of the Interests in a transaction that would violate the Securities Act or the securities laws of any state of the United States or any other applicable jurisdiction. 

 

	 	(iv)	SunEdison is not in the business of buying and selling securities. 

4.2 Representations and Warranties of FR Holdings. 

FR Holdings hereby represents and warrants as follows: 

(a) Existence; Good Standing; Corporate Authority. FR Holdings is duly organized, validly existing and in good
standing under the laws of the Cayman Islands. FR Holdings is duly qualified to do business in each jurisdiction in which the nature of its properties or its business requires such qualification and in which the failure to so qualify would
materially adversely affect its business or financial condition. FR Holdings has all requisite power and authority to own, operate and lease its properties and to carry on its business as now conducted. 

(b) Authorization, Validity and Effect of Agreement. FR Holdings has the requisite corporate power and authority to
execute and deliver this Agreement and to consummate the transactions contemplated by this Agreement. The execution and delivery of this Agreement and the consummation of the transactions contemplated hereby have been duly authorized by all
requisite corporate action on its behalf. FR Holdings has duly executed and delivered this Agreement and, assuming due authorization, execution and delivery hereof by the other Parties hereto, this Agreement constitutes a valid and legally
binding obligation of FR Holdings, enforceable against FR Holdings in accordance with the terms of this Agreement, subject to applicable bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium or other similar laws relating to
creditors’ rights and general principles of equity. 
 (c) No Conflict. The execution and delivery of
this Agreement by FR Holdings does not and will not, and the consummation by FR Holdings of the transactions contemplated hereby will not (i) conflict with or result in a breach or violation of any provision of its organizational
documents; (ii) violate, conflict with, result in a breach of any provision of, constitute a default (or an event which, with notice or lapse of time or both, would constitute a default) under, result in the termination or in a

  

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right of termination or cancellation of any of the terms, conditions or provisions of any of its material agreements; or (iii) contravene or conflict with, or constitute a violation of any
provision of, or trigger any liability or obligation under, any law, order or government permit applicable to or binding on FR Holdings, other than, in the case of clauses (ii) and (iii), any such violations, conflicts, breaches, defaults,
terminations, cancellations, liabilities, obligations, Liens, or contraventions that, individually or in the aggregate, have not had and are not reasonably likely to have a material adverse effect on FR Holdings. 

(d) Litigation. There are no actions, suits, claims, arbitrations, audits, hearings, investigations, litigation,
suits or proceedings (whether civil, criminal, administrative, investigative or appellate) pending or, to its knowledge, threatened, against FR Holdings or any of its Subsidiaries or any of their respective properties, that, individually or in the
aggregate, have had or are reasonably likely to have a material adverse effect on its abilities to fully perform its obligations under this Agreement. 

(e) Securities Law Matters. 
  

	 	(i)	FR Holdings understands that the Interests are being issued in reliance on an exemption from the registration requirements of the Securities Act for an offer and sale
of securities that does not involve a public offering and have not been registered under the Securities Act or with any securities regulatory authority of any state of the United States or other jurisdiction and, therefore, that such interests (and
all securities issued in exchange therefor or in substitution thereof) cannot be resold in the absence of such registration except pursuant to an exemption from, or in a transaction not subject to, such registration requirements. FR Holdings
agrees that it shall not transfer any of the Interests except in a transaction registered or exempt under the Securities Act. 

  

	 	(ii)	FR Holdings is an “accredited investor” within the meaning of Rule 501 of the Securities Act and is able to bear the economic risks of such investment for an
indefinite period of time. 

  

	 	(iii)	FR Holdings will acquire the Interests for its own account and not with a view to any distribution (within the meaning of the Securities Act) thereof or with any
present intention of offering or selling any of the Interests in a transaction that would violate the Securities Act or the securities Laws of any state of the United States or any other applicable jurisdiction. 

 

	 	(iv)	FR Holdings is not in the business of buying and selling securities. 

 

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 4.3 Representations and Warranties of FR Holdings US. 

FR Holdings US hereby represents and warrants as follows: 

(a) Existence; Good Standing; Corporate Authority. FR Holdings US is duly organized, validly existing and in good
standing under the laws of the state of Delaware. FR Holdings US is duly qualified to do business in each jurisdiction in which the nature of its properties or its business requires such qualification and in which the failure to so qualify would
materially adversely affect its business or financial condition. FR Holdings US has all requisite power and authority to own, operate and lease its properties and to carry on its business as now conducted. 

(b) Authorization, Validity and Effect of Agreement. FR Holdings US has the requisite limited liability company
power and authority to execute and deliver this Agreement and to consummate the transactions contemplated by this Agreement. The execution and delivery of this Agreement and the consummation of the transactions contemplated hereby have been duly
authorized by all requisite corporate action on its behalf. FR Holdings US has duly executed and delivered this Agreement and, assuming due authorization, execution and delivery hereof by the other Parties hereto, this Agreement constitutes a valid
and legally binding obligation of FR Holdings US, enforceable against FR Holdings US in accordance with the terms of this Agreement, subject to applicable bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium or other similar laws
relating to creditors’ rights and general principles of equity. 
 (c) No Conflict. The execution and
delivery of this Agreement by FR Holdings US does not and will not, and the consummation by FR Holdings US of the transactions contemplated hereby will not (i) conflict with or result in a breach or violation of any provision of its limited
liability company organizational documents; (ii) violate, conflict with, result in a breach of any provision of, constitute a default (or an event which, with notice or lapse of time or both, would constitute a default) under, result in the
termination or in a right of termination or cancellation of any of the terms, conditions or provisions of any of its material agreements; or (iii) contravene or conflict with, or constitute a violation of any provision of, or trigger any
liability or obligation under, any law, order or government permit applicable to or binding on FR Holdings US, other than, in the case of clauses (ii) and (iii), any such violations, conflicts, breaches, defaults, terminations, cancellations,
liabilities, obligations, Liens, or contraventions that, individually or in the aggregate, have not had and are not reasonably likely to have a material adverse effect on FR Holdings US. 

(d) Litigation. There are no actions, suits, claims, arbitrations, audits, hearings, investigations, litigation,
suits or proceedings (whether civil, criminal, administrative, investigative or appellate) pending or, to its knowledge, threatened, against FR Holdings US or any of its Subsidiaries or any of their respective properties, that, individually or in
the aggregate, have had or are reasonably likely to have a material adverse effect on its abilities to fully perform its obligations under this Agreement. 
  

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 (e) Securities Law Matters. 

 

	 	(i)	FR Holdings US understands that the Interests are being issued in reliance on an exemption from the registration requirements of the Securities Act for an offer and
sale of securities that does not involve a public offering and have not been registered under the Securities Act or with any securities regulatory authority of any state of the United States or other jurisdiction and, therefore, that such interests
(and all securities issued in exchange therefor or in substitution thereof) cannot be resold in the absence of such registration except pursuant to an exemption from, or in a transaction not subject to, such registration requirements. FR Holdings US
agrees that it shall not transfer any of the Interests except in a transaction registered or exempt under the Securities Act. 

  

	 	(ii)	FR Holdings US is an “accredited investor” within the meaning of Rule 501 of the Securities Act and is able to bear the economic risks of such investment for
an indefinite period of time. 

  

	 	(iii)	FR Holdings US will acquire the Interests for its own account and not with a view to any distribution (within the meaning of the Securities Act) thereof or with any
present intention of offering or selling any of the Interests in a transaction that would violate the Securities Act or the securities Laws of any state of the United States or any other applicable jurisdiction. 

 

	 	(iv)	FR Holdings US is not in the business of buying and selling securities. 

ARTICLE 5. Default. 
 5.1
Events of Default. 
 (a) The failure of any Party to perform any of its material covenants or obligations
under the terms of this Agreement and the continuation of such failure for thirty (30) days (except in the case of non-payment of Capital Contributions as and when required herein, which shall continue for ten (10) Business Days) after
receipt of notice from a non-defaulting Party or such additional time as reasonably required if the default is of such a nature that it cannot be cured completely within thirty (30) days (or ten (10) Business Days in the case of payment of
Capital Contributions) (provided the defaulting Party shall commence such cure and thereafter diligently pursue the same to completion) shall constitute an “Event of Default” under this Agreement. For the avoidance of doubt,
any failure of a Project Company or JV Entity to perform any of its material covenants or obligations under the terms of this Agreement, which failure is attributable to the failure 

 

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of SunEdison to make Capital Contributions as required hereunder, shall not be considered an Event of Default by such Project Company or JV Entity. 

(b) The foregoing notwithstanding, no Party shall be liable for the failure to comply with any of its respective
obligations under this Agreement to the extent, and for the period, that such failure results from Force Majeure. The Party claiming a Force Majeure shall make all reasonable efforts, including all reasonable expenditures, necessary to cure,
mitigate or remedy the effects of a Force Majeure. As soon as possible following the date of commencement of any Force Majeure, if a Party desires to invoke such Force Majeure as the reason for such Party’s failure to perform, it shall promptly
(but not later than two (2) Business Days after learning of such Force Majeure), advise the other Party in writing of such date, describing the Force Majeure and reasonable alternative measures that the affected Party has taken and proposes to
take in order to avoid the effect of such Force Majeure on such Party’s ability to fulfill its obligations under this Agreement and to mitigate the consequences thereof, and the nature and expected duration of such Force Majeure. Upon the
occurrence and during the continuance of any Force Majeure, the Parties shall endeavor to continue to perform their obligations under this Agreement so far as reasonably practicable. 

5.2 Remedies. 

(a) Remedies Generally. Upon the occurrence of an Event of Default, subject to Sections 6.6(e) and (f), a
non-defaulting Party may (i) pursue any remedies available at law or in equity, including, without limitation, a claim for specific performance and/or a claim for monetary damages; and/or (ii) at its sole option and in addition to any
other remedies, proceed to cure the Event of Default for the account of the defaulting Party (including, without limitation, by making a Capital Commitment contribution in lieu of such contribution owed by a defaulting Party) and any sum so expended
by the non-defaulting Party (other than a Capital Commitment contribution) shall constitute a debt of the defaulting Party to the non-defaulting Party and shall be recoverable accordingly in any court of competent jurisdiction. In addition, an Event
of Default may give rise to termination of this Agreement as provided in Section 6.6 below. 
 (b)
SunEdison Carrying Costs; Escrow Amount. In the event any SunEdison Carrying Costs shall be payable to SunEdison or any of its Affiliates with respect to a Project pursuant to the terms of any EPC Agreement, SunEdison, acting through the
applicable SunEdison EPC Party, shall have the right to instruct the escrow agent for such Project to withdraw the SunEdison Carrying Costs then payable to SunEdison or its Affiliates from the Escrow Amount for such Project and to remit such funds
to SunEdison or its Affiliate and, upon any such withdrawal, the Project JV Entity and its Affiliates shall be released from any liability in an amount equal to the amount so withdrawn. To the extent the Escrow Amount is insufficient to cover the
full amount of SunEdison Carrying Costs then payable to SunEdison or its Affiliates, such unpaid amounts shall continue to be payable to SunEdison or its Affiliates pursuant to the other provisions of this Agreement. 

 

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 5.3 Indemnification; Limitation of Liability. 

(a) Investor Indemnity. Each Investor hereby agrees to defend, indemnify and hold the applicable JV Entity and the
other Investors harmless from any loss, whether in the nature of a cost, damage, expense, payment, diminution in value, liability or obligation or otherwise, and related reasonable attorneys’, accountants’ and other professional
advisors’ fees and expenses (including those as to investigation, prosecution or defense of any claim or threatened claim), whether or not involving a third-party claim, and arising from or in connection with (but excluding in all cases
indirect, special, incidental, consequential, and punitive damages): (i) any failure by such Investor to pay to a JV Entity any Capital Contribution required to be made hereunder; (ii) any breach of any representation or warranty in this
Agreement or in any Joinder Agreement made by such Investor; or (iii) any breach by such Investor in the performance of its covenants or obligations set forth in this Agreement or in any Joinder Agreement. 

(b) Limitation of Liability. An Investor’s maximum liability under this Agreement shall be limited to the
dollar value of any Capital Contributions required to be made by such Investor (but not yet made as of such time) pursuant to Section 2.3(a). 

ARTICLE 6. Term and Termination. 

6.1 Term. 

This Agreement shall commence on the date hereof and shall continue and remain in full force and effect until this Agreement is
terminated in accordance with this Article 6. 
 6.2 Termination by Mutual Consent. 

This Agreement may be terminated by the mutual written consent of all Parties. In the event of termination pursuant to this
Section 6.2, the consequences of termination shall be as agreed upon among the Parties in writing. 
 6.3
Termination on Completion. 
 This Agreement shall terminate and be of no further force and effect at such time as all
Capital Commitments have been invested in Projects and all PPAs for Projects owned by the Project Companies and/or the JV Entities hereunder have expired or otherwise terminated. 

6.4 Termination on Transfer of all Interests. 

This Agreement shall terminate and be of no further force and effect at such time as neither FR Holdings (or its designated Affiliates)
nor SunEdison has an Interest in any of the JV Entities. The Parties expressly acknowledge and agree that a termination of this Agreement pursuant to this Section 6.4 shall have no effect on any then existing EPC Agreements or O&M
Agreements. 
  

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 6.5 Termination by FR Holdings upon Transfer of all of SunEdison’s
Interests. 
 FR Holdings may terminate this Agreement from and after any Transfer by SunEdison of all of its Interests in
the JV Entities (including pursuant to the exercise of a Call Option, FR Purchase Option, or in connection with a Required Sale, Competitor Tag-Along Right or any other Transfer). The Parties expressly acknowledge and agree that a termination of
this Agreement pursuant to this Section 6.5 shall have no effect on any then existing EPC Agreements or O&M Agreements or the obligations under Article 3 of the Parties to proceed with the Projects on the Registry. If this
Agreement is terminated pursuant to this Section 6.5, then only further obligations relating to new Projects not yet added to the Registry, Section 3.5 and, solely with respect to SunEdison, the provisions of Article 2
and Section 5.3(a) (except with respect to any losses arising from events occurring prior to such termination) of this Agreement, shall be terminated. Each of the then existing JV Entity Agreements, EPC Agreements, O&M Agreements and
obligations of the Parties pursuant to Sections 3.1(a)(vi), 3.2, 3.3, 3.4, 5.1, 5.2, 5.3, 7.1, 7.2, 7.4, 7.7 and 7.13, shall remain in full force and effect and continue in accordance with their terms. The representations and
warranties set forth in Article 4 shall survive execution hereof and claims for breach thereof may be made for a period of two (2) years following the date hereof. 

6.6 Termination upon Events of Default and JV Risk. 

(a) Termination by FR Holdings. In addition to its remedies in the case of an Event of Default pursuant to
Section 5.2, FR Holdings may terminate this Agreement if there has been (i) an Event of Default by SunEdison or JV Risk with respect to SunEdison, (ii) a failure by SunEdison or any of its Affiliates to perform any of its
material covenants or obligations under the terms of an EPC Agreement or O&M Agreement, which failure, pursuant to the terms of such EPC Agreement or O&M Agreement, has given rise to a right of termination by a JV Entity or Project Company
(a “SunEdison Contractor Breach”), (iii) a failure by MEMC to perform any of its material covenants or obligations under the terms of the MEMC Guarantee (an “MEMC Breach”) or (iv) a failure
by SunEdison to perform any of its material covenants or obligations under the terms of a SunEdison Guaranty (a “SunEdison Breach”). 

(b) Termination by SunEdison. In addition to its remedies in the case of an Event of Default pursuant to
Section 5.2, SunEdison may terminate this Agreement if there has been (i) an Event of Default by FR Holdings or any of the JV Entities or JV Risk with respect to FR Holdings, (ii) a failure by a JV Entity or Project Company to
perform any of its material covenants or obligations under the terms of an EPC Agreement or O&M Agreement, which failure, pursuant to the terms of such EPC Agreement or O&M Agreement, has given rise to a right of termination by SunEdison or
its Affiliate (a “Project Company Breach”), (iii) a failure by the Fund to perform any of its material covenants or obligations under the terms of the Fund Guarantee (a “Fund Breach”), or
(iv) a failure by a Project JV Entity to perform any of its material covenants or obligations under the terms of a Project JV Entity Guaranty (a “Project JV Entity Breach”); provided that any failure by a Project
Company or JV Entity to perform any of its material covenants or obligations under the terms of an EPC Agreement, O&M 
  

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Agreement or Project JV Entity Guaranty, which failure is attributable to the failure of SunEdison to make Capital Contributions as required hereunder, shall not give rise to any right of
termination by SunEdison pursuant to this Section 6.6(b). 
 (c) Definitions. “JV
Risk” with respect to any Party means: such Party (i) institutes or consents to the institution of any proceeding under any debtor relief law, or makes an assignment for the benefit of creditors; or applies for or consents to the
appointment of any receiver, trustee, custodian, conservator, liquidator, rehabilitator or similar officer for it or for all or any material part of its property; or any receiver, trustee, custodian, conservator, liquidator, rehabilitator or similar
officer is appointed without the application or consent of such Party and the appointment continues undischarged or unstayed for sixty (60) days; or any proceeding under any debtor relief law relating to any such Party or to all or any material
part of its property is instituted without the consent of such Party and continues undismissed or unstayed for sixty (60) days, or an order for relief is entered in any such proceeding; (ii) becomes unable or admits in writing its
inability or fails generally to pay its debts as they become due; or (iii) any writ or warrant of attachment or execution or similar process is issued or levied against all or any material part of the property of any such Party and is not
released, vacated or fully bonded within thirty (30) days after its issue or levy. 
 (d) Consequences of
Termination on Breach. If this Agreement is terminated pursuant to this Section 6.6, all further obligations of the Parties under this Agreement (other than pursuant to the existing JV Entity Agreements, EPC Agreements, O&M
Agreements, Fund Guarantee, MEMC Guarantee, SunEdison Guarantees and Project JV Entity Guarantees and pursuant to Sections 5.1, 5.2, 5.3, 7.1, 7.2, 7.4, 7.7 and 7.13, all of which shall remain in full force and effect and continue in
accordance with their terms) will terminate without further liability or obligation of either Party to the other Party hereunder; provided, however, that the defaulting Party shall not be relieved or released from liability hereunder for damages
caused by its breach. 
 (e) Effect on Unpaid Projects. Notwithstanding anything to the contrary in this
Agreement or the Related Documents, in the event that (1) the termination of this Agreement pursuant to this Section 6.6 is effected by SunEdison as a result of (x) the breach of this Agreement by the JV Entities or by
Investors other than SunEdison, or a Project Company Breach, in either case which breach involves either the failure to make a Milestone Payment when due or the failure to make a Capital Contribution to fund a Milestone Payment or an indemnity
obligation when due (or, in the case of a Project Company Breach or a breach by a JV Entity under this Agreement, the JV Entity or Project Company taking, or failing to take, an action required under this Agreement or an EPC Agreement, as
applicable, which would lead to or facilitate a Milestone Payment) or (y) a Project JV Entity Breach or a Fund Breach, which breach involves the failure to make a payment when due under the Fund Guarantee or the JV Entity Guaranty, as
applicable; or (2) the JV Entity (or Project Company, as applicable) fails to make a Milestone Payment when due and this Agreement is not terminated, then, in either case, with respect to any Project in the Registry for which no portion of any
Milestone Payment has been paid, SunEdison shall have the right (exercisable in its sole discretion 
  

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within thirty (30) days following termination or such non-payment event, as applicable) to remove such Project from the Registry and develop and sell such Project to un-Affiliated
third-parties other than the JV Entities, and, in the event SunEdison elects to recover losses and costs from the JV Entities (and/or the Project Companies) with respect to such Project, (A) if any Investor has any remaining Unused Capital
Commitment, SunEdison shall recover losses and costs only as provided in Section 6.6(f)(ii)(a, b and c) below and (B) if there is no Unused Capital Commitment, it shall not receive losses and costs pursuant to
Section 6.6(f)(ii)(a, b and c) but shall only be permitted to recover from the JV Entities (and/or the Project Companies) the direct verifiable costs incurred by SunEdison and its Affiliates following acceptance of the relevant Project
into the Registry and for developing the Project for construction to the date of termination or non-payment, as applicable; provided that, for the avoidance of doubt, in no case shall an Investor’s liability hereunder exceed the limitation of
liability set forth in Section 5.3(b). For avoidance of doubt, in the event SunEdison exercises its remedies pursuant to this Section 6.6(e), the applicable JV Entity shall (to the extent applicable), at its own expense, take
such further actions, and execute and deliver, and cause to be executed and delivered as may be necessary or advisable to give effect thereto, such additional conveyances, assignments, documents, certificates, agreements and other instruments as may
be reasonably required to return ownership of the applicable Project Company or to convey title as directed to SunEdison for purposes of effectuating the remedies set forth in this Section 6.6(e). 

(f) Project Ownership and Control. 
  

	 	(i)	 Notwithstanding anything to the contrary in this Agreement or in any EPC Agreement, in the event a JV Entity (or the Project Company, as applicable)
fails to pay in full the second Milestone Payment required under an EPC Agreement, and FR Holdings’ Unused Capital Commitment has been reduced to zero, then (a) with respect to such Project, SunEdison shall not be permitted to exercise any
remedies pursuant to Section 5.2 until the [*****] anniversary of COD of such Project and (b) commencing on the date that is [*****] following COD of such Project and for a period of [*****] thereafter (the “Joint Sale
Period”), SunEdison and such JV Entity shall use their commercially reasonable efforts to cooperate in conducting an orderly process to sell and/or finance such Project to or with a third party (any such sale or financing, a
“Project Re-Sale”) upon such terms as are mutually acceptable to SunEdison and such JV Entity and, notwithstanding the fact that title to such Project may then be held by SunEdison or such JV Entity (or the Project Company),
any such Project Re-Sale shall require the prior written consent of SunEdison (until it or its Affiliates have been paid all amounts owed under the applicable EPC Agreement) and such JV Entity. If, upon expiration of the Joint-Resale Period,
SunEdison and such JV Entity have been unable to effect a Project Re-Sale (such that the parties shall not 

  

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have received the cash proceeds from such sale), then SunEdison shall be entitled to effect a Project Re-Sale to an un-Affiliated third party without the consent of such JV Entity upon
commercially reasonable terms. Until the expiration of the Joint Sale Period, SunEdison shall not be permitted to exercise any remedies pursuant to Section 5.2 with respect to such Project. For avoidance of doubt, in the event SunEdison
exercises its remedies pursuant to this Section 6.6(f), the applicable JV Entity shall, at its own expense, take such further actions, and execute and deliver, and cause to be executed and delivered as may be necessary or advisable to
give effect thereto, such additional conveyances, assignments, documents, certificates, agreements and other instruments as may be reasonably required to return ownership of the applicable Project Company or to convey title as directed to SunEdison
for purposes of effectuating the Project Re-Sale and the remedies set forth in this Section 6.6(f). 

  

	 	(ii)	As part of such Project-Resale, SunEdison (or its Affiliate, as applicable) shall be entitled to receive directly from such Project Re-Sale proceeds (or if such Project
Re-Sale amount is insufficient to make such payments, then to recover from such JV Entity (or the Project Company, as applicable), (a) any increased construction or financing costs payable to un-Affiliated third parties following termination,
(b) the difference, if any, between (1) the actual sale price of the Project in such Project Re-Sale and (2) the Purchase Price of such Project set forth in the applicable EPC Agreement, as reduced by any Milestone Payments (but only
to the extent that the sale price in subclause (1) is lower than the adjusted Purchase Price in subclause (2)) and (c) the SunEdison Carrying Cost through the date of such Project Re-Sale. 

 

	 	(iii)	In the event that the amounts received by SunEdison and its Affiliates in connection with any Project Re-Sale exceed the amounts described in
Section 6.6(f)(ii) above, any such excess shall be shared by the JV Entity and by SunEdison ratably based on the percentage of the Milestone Payments paid pursuant to the applicable EPC Agreement at the time of termination (i.e., if at
termination, the JV Entity or its Project Company had funded the first Milestone Payment and paid [*****]% of the second Milestone Payment, the residual sharing ratio would be [*****]% — JV Entity (consisting of [*****]% first Milestone Payment
and one half of the [*****]% second Milestone Payment) and [*****]% — SunEdison). 

  

	 	(iv)	 Notwithstanding anything herein to the contrary, (a) in the event that the JV Entity (or its Affiliate) is able to obtain financing for

  

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such Project (including but not limited to Project Debt Financing) by the end of the Joint Sale Period, such that it (or its Affiliate) is able to make (x) full payment of all Milestone
Payments required to be made under the applicable EPC Agreement and (y) payment of the SunEdison Carrying Cost, then SunEdison (or its Affiliate, as applicable) shall be obligated to accept such payment from the JV Entity (or its Affiliate, as
applicable) and (b) this Section 6.6(f) shall not apply to the Rovigo Project. 

  

	 	(v)	Notwithstanding anything to the contrary in this Agreement or an EPC Agreement, in the event a JV Entity (or the Project Company, as applicable) fails to pay in full
the second Milestone Payment required under an EPC Agreement with respect to a particular Project, SunEdison (or its Affiliate) shall have the right to receive and retain any and all revenue, payments or consideration of any kind from such Project
(including, without limitation, PPA payments, government incentives and payments pursuant to environmental credits or attributes) until such time as SunEdison (or its Affiliate) has received, net of all Project operating expenses, the sum of
(1) all Milestone Payments under the EPC Agreement, (2) SunEdison Carrying Costs related thereto and (3) reasonable attorneys’ fees and out of pocket expenses. 

ARTICLE 7. General. 
 7.1
Governing Law; Construction. 
 This Agreement shall be construed and shall take effect in accordance with the laws of
the State of New York and each of the parties hereby submits to the jurisdiction of the courts of that State and of any courts competent to hear appeals therefrom respectively. This Agreement shall be construed without regard to any presumption or
other rule requiring construction against the party causing this Agreement to be drafted. In the event of a conflict between the terms and provisions of this Agreement and the terms and provisions of any Related Document (including, for the
avoidance of doubt, any EPC Agreement, JV Entity Agreement or O&M Agreement), the terms and provisions of this Agreement shall control, unless otherwise expressly set forth herein or therein and agreed to by FR Holdings and SunEdison.

 7.2 Waiver of Jury Trial. 

EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY
IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER RELATED DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO
(A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER 
  

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PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER
PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION. 

7.3 Further Assurances. 

Each Party agrees at its own expense to do such further acts and things, and to execute and deliver, and cause to be executed and
delivered as may be necessary or advisable to give effect thereto, such additional conveyances, assignments, documents, certificates, agreements and other instruments as may be reasonably required to give full effect to this Agreement and the
Related Documents. 
 7.4 Notices. 

All notices and other communications provided for herein shall be in writing and shall be delivered by hand or overnight courier service,
mailed by certified or registered mail, or sent by telecopier as follows (provided notices may also be sent via electronic communications as hereinafter provided): 
  

			
	 If to SunEdison:
  

Sun Edison LLC
 12500 Baltimore Avenue

Beltsville, MD 20705
 Attention: Kevin Lapidus,

 General Counsel
 Facsimile: (240)
264-8100
 Email: klapidus@sunedison.com
	  	 with a copy to:
  

Bryan Cave LLP
 One Metropolitan
Square
 211 N. Broadway, Suite 3600

St. Louis, Missouri 63102
 Attention: Harold R.
Burroughs
 Facsimile: (314) 552-8706

Email: hrburroughs@bryancave.com

		
	 If to FR Holdings:
  

c/o First Reserve Corporation
 One Lafayette
Place
 Greenwich, CT 06830
 Attention:
Alan G. Schwartz
 Facsimile: (203) 625-8579

Email: aschwartz@firstreserve.com
	  	 with a copy to:
  

Simpson Thacher & Bartlett LLP
 425 Lexington
Avenue
 New York, NY 10017
 Attention:
William E. Curbow
 Facsimile: (212) 455-2502

Email: wcurbow@stblaw.com

  

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	 If to SunEdison Reserve US:
  

c/o First Reserve Corporation
 One Lafayette
Place
 Greenwich, CT 06830
 Attention:
Alan G. Schwartz
 Facsimile: (203) 625-8579

Email: aschwartz@firstreserve.com
	  	 with a copy to:
  

Simpson Thacher & Bartlett LLP
 425 Lexington
Avenue
 New York, NY 10017
 Attention:
William E. Curbow
 Facsimile: (212) 455-2502

Email: wcurbow@stblaw.com

		
	 If to SunEdison Reserve International:
  

c/o First Reserve Corporation
 One Lafayette
Place
 Greenwich, CT 06830
 Attention:
Alan G. Schwartz
 Facsimile: (203) 625-8579

Email: aschwartz@firstreserve.com
	  	 with a copy to:
  

Simpson Thacher & Bartlett LLP
 425 Lexington
Avenue
 New York, NY 10017
 Attention:
William E. Curbow
 Facsimile: (212) 455-2502

Email: wcurbow@stblaw.com

No such notice, consent or other communication shall be deemed to have been received until it is actually received at the address of the
Party to whom it is addressed in accordance with this Section. Notices and other communications to the Parties may be delivered or furnished by electronic communication (including e-mail and Internet or intranet websites). Unless the Parties
otherwise agree in writing, (i) notices and other communications sent to an e-mail address shall be deemed received upon the sender’s receipt of an acknowledgement from the intended recipient (such as by the “return receipt
requested” function, as available, return e-mail or other written acknowledgement), provided that if such notice or other communication is not sent during the normal business hours of the recipient, such notice or communication shall be deemed
to have been sent at the opening of business on the next business day for the recipient, and (ii) notices or communications posted to an internet or intranet website shall be deemed received upon the deemed receipt by the intended recipient at
its e-mail address as described in the foregoing clause (i) of notification that such notice or communication is available and identifying the website address therefor. 

7.5 Performance on Business Days. 

Unless otherwise expressly set forth in this Agreement, references to “days” shall refer to calendar days and not
Business Days. If, however, any date for the occurrence of an event or act under this Agreement falls on a Saturday or Sunday or legal holiday in the State of New York, then the time for the occurrence of such event or act shall be extended to the
next succeeding business day. 
 7.6 Counterpart Execution. 

This Agreement may be executed in any number of counterparts, each of which shall constitute an original. The parties may sign this
Agreement by faxed copies or email 
  

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transmissions of PDF or scanned copies, and any such faxed or emailed copy shall be deemed to be an original, and no objection shall be made to the introduction into evidence of any faxed or
emailed copy on grounds related to the faxed or emailed copy not being an original. 
 7.7 Confidentiality. 

(a) Except as otherwise set forth herein, no public announcement shall be made or permitted by any Party hereto in
relation to the subject matter or the implementation of this Agreement without the prior written consent of each of SunEdison and FR Holdings, except as may be required by law or by the rules of any stock exchange on which any Party (or its parent
company or parent companies) is listed and then only after prior notice has been given by the Party concerned to the other Parties. Notwithstanding the foregoing, SunEdison may make any public announcements regarding the Projects it may deem
appropriate; provided, however, that (i) prior to making any such announcement, it must notify FR Holdings and provide FR Holdings with the opportunity to participate in and/or make a similar public announcement regarding such Project(s) and
(ii) if such announcement proposes to identify or otherwise refer to any Investor, SunEdison shall obtain the prior written consent of such other Investor with respect to the proposed announcement. Once SunEdison has effected an announcement
regarding the development of or plan to develop a Project, FR Holdings may elect to disclose or cause to be disclosed its ownership interest in articles about such Project. 

(b) The Parties agree to maintain the confidentiality of the Information (as defined below), except that Information may
be disclosed (i) to the Parties’ respective Affiliates and to their and their Affiliates’ respective partners, directors, officers, employees, agents, trustees, advisors and representatives who need to know such information for the
purpose of monitoring such Party’s participation in the venture contemplated hereby (it being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such Information and instructed to keep
such Information confidential), (ii) to the extent requested by any regulatory authority purporting to have jurisdiction over it (including any self-regulatory authority or pursuant to applicable securities reporting rules and laws),
(iii) to the extent required by applicable laws or regulations or by any subpoena or similar legal process, (iv) to any other Party hereto, (v) in connection with the exercise of any remedies hereunder or under any other Related
Document or any action or proceeding relating to this Agreement or any other Related Document or the enforcement of rights hereunder or thereunder, but only to the extent such disclosure is necessary, in the opinion of counsel to such Party, to the
enforcement of such rights (vi) subject to an agreement containing provisions substantially the same as those of this Section 7.7, (viii) to potential sources of Project Debt Financing, (ix) with the written consent of the
disclosing Party or (x) to the extent such Information (a) becomes publicly available other than as a result of a breach of this Section or (ii) becomes available to a non-disclosing Party on a nonconfidential basis from a source
other than the disclosing Party. 
  

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 For purposes of this Section, “Information” means all
information received by a Party from another Party relating to the Projects or the business and affairs of the disclosing Party which the disclosing Party treats as confidential and/or proprietary. 

7.8 Non-Waiver. 

Waiver by either Party of any right under this Agreement shall not be deemed a waiver by such Party of any other right hereunder.

 7.9 Third Party Rights. 

The provisions of this Agreement are for the benefit solely of the Parties hereto and not for any other third party. 

7.10 Headings. 

The captions, headings and titles in this Agreement are solely for convenience of reference and shall not affect its interpretation.

 7.11 Entire Agreement. 

This Agreement and the referenced exhibits and collateral agreements are the final, complete, and exclusive agreement of the parties with
respect to the subject matter hereof and supersede and merge all prior or contemporaneous communications and understandings between the parties. No modification of or amendment to this Agreement will be effective unless in writing and signed by the
party to be charged. 
 7.12 Severability. 

The invalidity in whole or in part of any part of this Agreement shall not affect the validity of the remainder of the Agreement.

 7.13 Expenses. 

All Parties are responsible for their own costs in connection with the negotiation of this Agreement, including any costs incurred in
connection with evaluating the formation of the JV Entities. In the event any Party hereto finds it necessary to employ legal counsel to bring an action at law or in equity against any other Party to enforce any of the terms, covenants or conditions
hereof, the Party prevailing in any such action shall be paid all reasonable attorneys’ fees by the other Party, and in the event any judgment is secured by such prevailing Party, all such attorneys’ fees shall be included in such judgment
in such action. 
 7.14 Assignment. 

Except as otherwise provided herein, including the Transfer of any Interest made in accordance with and pursuant to
Section 2.6, this Agreement shall not be assignable in whole or in part or otherwise transferable by any Party hereto without the prior written consent of all of 

 

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the other Parties hereto, and any purported assignment or other transfer without such consent shall be void and unenforceable; provided, however, that the Parties hereto acknowledge
and agree that for each Project, (a) the Project JV Entity may form a Project Company to discharge the Project JV Entity’s obligations and assume its rights with respect to that Project; and (b) SunEdison may form or utilize one or
more wholly owned subsidiary entities to discharge SunEdison’s obligations and assume its rights with respect to that Project (including each of the entities defined herein as the SunEdison EPC Parties); provided further that no such
delegation of duty or assignment of rights shall relieve the assigning Party of its obligations hereunder and each such assigning Party shall remain fully liable hereunder for those assigned rights and delegated duties. 

[Signature page follows] 
  

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 The parties have executed this Agreement as of the 21st day of May, 2010. 

 

			
	FREI SUN HOLDINGS (CAYMAN) LTD.
		
	By:	 	 /s/    Mark Florian

	Name:	 	Mark Florian
	Title:	 	Director
	
	FREI SUN HOLDINGS (US) LLC
		
	By:	 	 FREI Alpha AIV, L.P., its managing

member

  

					
		 	By: First Reserve Energy Infrastructure GP, L.P., its general partner

 

					
		 	By: First Reserve Energy Infrastructure GP Limited, its general partner

 

			
	 By:
	 	 /s/    Mark Florian

	 Name:
	 	Mark Florian
	 Title:
	 	Director
	
	 SUN EDISON LLC

		
	 By:
	 	 /s/    Carlos Domenech

	 Name:
	 	Carlos Domenech
	 Title:
	 	President — SunEdison

  

 [Framework Agreement] 

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	 SUNEDISON RESERVE INTERNATIONAL, L.P.

		
	 By:
	 	 SunEdison Reserve GP, LLC, its general partner

		
	 By:
	 	 /s/    Mark Florian

	 Name:
	 	 Mark Florian

	 Title:
	 	 Authorized Person

	
	 SUNEDISON RESERVE US, L.P.

		
	 By:
	 	 SunEdison Reserve GP, LLC, its general partner

		
	 By:
	 	 /s/    Mark Florian

	 Name:
	 	 Mark Florian

	 Title:
	 	 Authorized Person

  

 [Framework Agreement] 

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 EXHIBIT A 

MANDATORY PROJECT DUE DILIGENCE 
  

	 	•	 	 Base Case Model for the Project 

  

	 	•	 	 Third-party technical (including irradiation) report for Projects greater than [*****]MW and a comparable internal report provided by SunEdison for
Projects under [*****]MW 

  

	 	•	 	 SunEdison PVSSYT (or comparable) production model 

  

	 	•	 	 Legal due diligence reports 

  

	 	•	 	 If a ground-mount Project, land contract (rental or purchase), which contract shall be signed or be in substantially final form. If a rooftop Project,
the landlord consent (as applicable) for such rooftop space, which shall be signed or be in substantially final form. 

  

	 	•	 	 Summary permitting document checklist for each Project 

 

	 	•	 	 DIA/AU confirmation (similar for other countries) 

  

	 	•	 	 Signed PPA (U.S.) 

  

	 	•	 	 O&M agreement (appropriately tailored for the scale and location of the Project) 

 

	 	•	 	 EPC Agreement (appropriately tailored for the scale and location of the Project) 

 

	 	•	 	 Proposed panel and inverter providers, along with warranty provisions, which proposed panel and/or inverter providers and/or warranty provisions may be
changed by SunEdison subsequent to the applicable JV Entity’s approval of the Mandatory Due Diligence for the applicable Project, provided that each such change is approved by the applicable JV Entity (except that any change to an Approved Tier
1 Vendor which results in a change of panels and/or inverters representing less than or equal to [*****]% of the total panels and/or inverters required for such Project does not require approval, provided the warranty provisions applicable to such
panels and/or inverters are no less favorable to the user than those warranty provisions applicable to the other panels and inverters) 

  

	 	•	 	 In the U.S., description of state incentive, and, if applicable, copy of REC off-take agreement 

 

	 	•	 	 Project Pricing Summary Sheet 

  

	 	•	 	 For Projects for which a special purpose vehicle has been established by SunEdison or its Affiliate and which is proposed to be transferred to the
Project JV Entity, copies of all title and related documentation, a list of all permits, land rights, authorizations and other rights, assets or properties held by such vehicle, as well as evidence that the company is free and clear of all
liabilities, obligations, liens, encumbrances and restrictions (including any indebtedness) other than as listed on a schedule provided to the Project JV Entity for such special purpose vehicle. The schedule listing any such liabilities,
obligations, liens, encumbrances or restrictions shall be considered part of the Mandatory Project Due Diligence for such Project. 

  

	 	•	 	 Copies of the Subcontractor Performance Security (as such term is defined in the form of EPC Agreement) and the underlying subcontractor warranty to
which such Subcontractor Performance Security relates. 

  

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 EXHIBIT N 

APPROVED TIER 1 VENDORS 
  

	 	•	 	 [*****] 

  

 [    ]-1

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