Document:

EX-10.12

Exhibit 10.12

EMPLOYMENT AGREEMENT

     This EMPLOYMENT AGREEMENT (the “Agreement”) is made effective September 21, 2008, by and
between (i) GLOBE SPECIALTY METALS INC., a Delaware corporation (the “Company”), with its principal
place of business currently at 1 Penn Plaza, Suite 2514, New York, NY 10119 and (ii) MALCOLM P.
APPELBAUM (the “Executive”), 47 Linclon Road, Scarsdale, NY 10583. Certain other capitalized terms
used herein are defined in Section 9 below.

     In consideration of the mutual covenants and promises contained herein, and other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties
agree as follows:

     1. Term of Employment. The Company hereby agrees to employ the Executive, and the
Executive hereby accepts employment with the Company, upon the terms set forth in this Agreement,
for a term of three (3) years that commences on September 21, 2008 (the “Effective Date”), and that
ends, unless sooner terminated in accordance with Section 4, on September 20, 2011. The period
during which the Executive is employed pursuant to this Agreement shall be referred to herein as
the “Employment Period.”

     2. Title; Capacity.

               (a) During the Employment Period, the Executive shall serve as the Chief Financial Officer of
the Company and shall have all authorities, duties and responsibilities customarily exercised by an
individual serving in that position at an entity of the size and nature of the Company, as from
time to time reasonably modified by the Board of Directors of the Company (the “Board”) on notice
to the Executive. During the Employment Period, the Executive shall report directly to the Chief
Executive Officer.

               (b) The Executive hereby accepts such employment, agrees to undertake the duties and
responsibilities of Chief Financial Officer of the Company in accordance herewith, and to perform
such other executive duties and responsibilities, consistent herewith, as the Board shall from time
to time reasonably assign to him. The Executive agrees to devote substantially all of his business
time, attention and energies to the business and interests of the Company during the Employment
Period; provided, however, that nothing in this Agreement shall preclude the
Executive from: (i) engaging in charitable and professional activities and community affairs
provided that such activities and community affairs do not impact negatively upon the image of the
Company, and (ii) managing his personal investments and affairs. The Executive’s principal place of
employment shall be at the Company’s headquarters, which are currently located at the address for
the Company set forth above. Unless otherwise traveling on Company business, the Executive shall
generally work at the Company’s headquarters in New York, New York.

     3. Compensation and Benefits.

          3.1 Salary. In accordance with the normal payroll practices of the Company, the
Company shall pay the Executive an annual base salary (the “Base Salary”) of Three

1

 

Hundred Thousand ($300,000.00) Dollars in respect of his services during the Employment
Period, subject to annual review by the Board for increase.

          3.2 Bonus. In addition to the Executive’s Base Salary, the Executive shall be eligible
to receive an annual cash bonus in such amount as shall be determined by the Board. For the fiscal
year during the Employment Period commencing on July 1, 2008 and ending June 30, 2009, subject to
Section 4 hereof, the Executive shall receive a cash bonus of at least $96,575.00. Payment of the
bonus shall be made at such time as determined by the Board; provided, however, that such bonus
must be paid on or before July 31 immediately following the end of the fiscal year for which such
bonus is payable.

          3.3 Stock Options. To induce the Executive to enter into this Agreement, the Company
hereby grants to the Executive stock options (the “Stock Options”) on the Company common stock upon
the terms and conditions set forth on Annex A hereto.

          3.4 Fringe Benefits. The Executive shall be entitled to participate in all perquisite
and benefit programs that the Company makes available to its senior executives, if any, to the
extent that the Executive’s position, tenure, salary, age, health and other qualifications make him
eligible under the terms of the applicable program (as amended from time to time) to participate,
including without limitation (i) long-term disability insurance paid by the Company, (ii) business
travel accident insurance and (iii) reimbursement (in accordance with Section 3.5 hereof) of all
expenses. The Executive shall be entitled to four (4) weeks of paid vacation per calendar year
(prorated for any partial year) plus Federal holidays.

          3.5 Reimbursement of Expenses. The Company shall reimburse the Executive for all
reasonable travel, entertainment, communication technologies (i.e., laptop computer, cell phone and
Blackberry) and other expenses incurred or paid by the Executive in connection with, or related to,
the performance of his duties, responsibilities or services under this Agreement, upon presentation
by the Executive of documentation, expense statements, vouchers and/or such other supporting
information as the Company may reasonably request.

          3.6 Indemnification. If the Executive is made a party or is threatened to be made a
party to any Proceeding (as defined in Section 9 below) by reason of the fact that he is or was a
director or officer of the Company or any of its affiliates or is or was serving at the request of
the Company or any of its affiliates, or in connection with his service hereunder, as a director or
officer of another person, or if any Claim (as defined in Section 9 below) is made or is threatened
to be made that arises out of or relates to the Executive’s service in any of the foregoing
capacities, then the Executive shall promptly be indemnified and held harmless to the fullest
extent permitted or authorized by the Articles of Incorporation or Bylaws of the Company, or if
greater, by applicable law, against any and all reasonable costs, reasonable expenses, liabilities
and losses (including, without limitation, reasonable attorneys’ and other professional fees and
charges, judgments, interest, reasonable expenses of investigation, penalties, fines, ERISA excise
taxes or penalties and amounts paid or to be paid in settlement) incurred or suffered by the
Executive in connection therewith or in connection with seeking to enforce his rights under this
Section 3.6, and such indemnification shall continue as to the Executive even if he has ceased to
serve in any such capacity, and shall inure to the benefit of his heirs, executors and
administrators. The Executive shall be entitled to prompt reimbursement of

2

 

any and all costs and expenses (including, without limitation, reasonable attorneys’ and other
professional fees and charges) reasonably incurred by him in connection with any such Proceeding or
Claim, or in connection with seeking to enforce his rights under this Section 3.6, any such
reimbursement to be made within 30 days after the Executive gives written notice, supported by
reasonable documentation, requesting such reimbursement, and in all cases not later than March 15
of the calendar year following the calendar year in which such expenses were incurred. Such notice
shall include an undertaking by the Executive to promptly repay the amount paid if he is ultimately
determined not to be entitled to indemnification against such costs and expenses; provided that
repayment shall occur no later than 60 days following the applicable determination. Nothing in this
Agreement shall operate to limit or extinguish any right to indemnification, reimbursement of
expenses, or contribution that the Executive would otherwise have (including, without limitation,
by agreement or under applicable law).

4. Employment Termination. Notwithstanding Section 1, the Executive’s employment under this
Agreement shall terminate upon the occurrence of any of the following:

          4.1 at the election of the Company, for Cause (as defined in Section 9 below), immediately
with notice by the Company to Executive;

          4.2 upon the death of, or 30 days’ after written notice upon the Disability (as defined in
Section 9 below) of, the Executive;

          4.3 at the election of the Executive, for Good Reason (as defined in Section 9 below), upon 30
days’ written notice by the Executive to the Company; and

          4.4 in the event that none of Sections 4.1, 4.2 and 4.3, at the election of either party, upon
30 days’ written notice to the other party.

5. Effect of Termination.

          5.1 Termination by Company for Cause or by Executive Voluntarily. If the Executive’s
employment hereunder is terminated by the Company for Cause in accordance with Section 4.1 above,
or if the Executive terminates his employment hereunder in accordance with Section 4.4 above, the
Executive shall receive the benefits described in Section 5.4 below. Subject to the foregoing, the
Company shall have no further obligations to the Executive hereunder.

          5.2 Termination by Company Without Cause or by Executive for Good Reason. If the
Executive’s employment hereunder is terminated by the Company in accordance with Section 4.4 above,
or if the Executive terminates his employment hereunder for Good Reason in accordance with Section
4.3 above:

               (i) the Company shall pay to the Executive an amount equal to the Executive’s then Base
Salary and any accrued bonus as of the Termination Date, payable in equal monthly
installments due on the first business day of each month during the twelve (12) month period
immediately following such termination; provided, however, that if such termination occurs
during the first twelve (12) months of

3

 

Executive’s employment, Executive shall be entitled to an additional $10,416.66
included in each of the twelve (12) monthly installments.

               (ii) the Executive shall be entitled to continued participation pursuant to the
Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”) in all
insurance and benefit plans providing medical coverage, to the extent such plans are then
provided by the Company, at the same benefit level which is provided to other executives of
the Company until the last day of the coverage period mandated by COBRA, provided,
that, during the twelve (12) month period commencing on the Termination Date, the
premium cost of the coverage provided pursuant to this Section 5.2(ii) shall be paid in full
by the Company;

               (iii) the Executive shall receive the benefits described in Section 5.4 below.

          5.3 Termination Upon Death or Disability or Expiration of Employment Period. If the
Executive’s employment hereunder is terminated as a result of his death or because of his
Disability as determined pursuant to Section 4.2 above, or upon expiration of the Employment
Period, the Company shall provide to the Executive the benefits described in Section 5.4 below.

          5.4 Other Accrued Benefits. Upon any termination of the Executive’s employment
hereunder, he shall be entitled to:

               (i) any unpaid Base Salary through the Termination Date;

               (ii) subject to the terms of the applicable award or arrangement, the balance of any
annual incentive award earned in respect to any full fiscal year ending on or prior to the
Termination Date, or payable (but not yet paid) on or prior to the Termination Date;

               (iii) subject to the terms of the actual award or arrangement and provided that
Executive is not terminated for Cause or does not terminate his employment without Good
Reason, any amounts payable with respect to the fiscal year in which termination occurs
under any annual incentive award (prorated for the portion of the year Executive was
employed by the Company);

               (iv) any other benefits accrued as of the Termination Date in accordance with the terms
of the applicable plans, programs and arrangements of the Company (including, without
limitation, benefits under Section 10.9); and

               (v) payment in accordance with the payroll practices of the Company, of all amounts due
in connection with the termination, such payments to be made by wire transfer of same-day
funds to the extent reasonably requested by the Executive.

4

 

Any amounts payable pursuant to this Section 5.4 shall be paid no later than 60 days after the
Termination Date, unless an alternative payment schedule is provided for under this Agreement or
the applicable plan, award or arrangement.

          5.5 Miscellaneous. In the event of any termination of the Executive’s employment
hereunder, the Executive shall be under no obligation to seek other employment or otherwise
mitigate the obligations of the Company under this Agreement, and there shall be no offset against
amounts or benefits due the Executive under this Agreement or otherwise on account of any
remuneration or other benefit earned or received after such termination. Any amounts due to the
Executive under this Section 5 are considered to be reasonable by the Company and are not in the
nature of a penalty.

     6. Restrictions.

          6.1 Non-Solicitation and Non-Competition. During the Employment Period and for one (1)
years thereafter, the Executive will not directly or indirectly, alone or in association with
others, other than in connection with performing his duties for the Company:

               (i) (A) recruit, solicit or induce any employee or consultant of the Company or any of its
affiliates to terminate his or her employment with, or otherwise cease his or her relationship
with, the Company or any of its affiliates, or (B) employ or retain any employee of the Company or
any of its affiliates within six (6) months of the date that such employee or individual ceases
providing services to the Company or any of its affiliates;

               (ii) solicit, divert or take away the business or patronage of any customer, supplier or other
business relation of the Company or any of its affiliates who have done business with the Company
during the twelve month period prior to the Termination Date or who are a potential customer,
supplier or other business relation with which the Company or any of its affiliates is currently
attempting to establish a relationship at the time of the Termination Date; or

               (iii) own, manage, operate, sell, control or participate in the ownership, management,
operation, sales or control of, be involved with the development efforts of, serve as a technical
advisor to, license intellectual property to, provide services to or in any manner engage in any
business that competes with any business in which the Company or any of its affiliates is engaged
as of the Termination Date; provided, however, that Executive may own as a passive investor up to
5.0% of any class of an issuer’s publicly traded securities.

          6.2 Business Scope and Geographical Limitation. Executive acknowledges (i) that the
business of the Company and its affiliates is, and is expected to remain, international in scope
and without geographical limitation; (ii) notwithstanding the state of incorporation or principal
office of the Company or any of its affiliates, or any of their respective executives or employees
(including Executive), it is expected that the Company and its affiliates will have business
activities and have valuable business relationships within its industry throughout the world; and
(iii) as part of his responsibilities, Executive will travel around the world in furtherance of the
Company’s and its affiliates’ businesses and their relationships. Accordingly, the restrictions set
forth in this Section 6 shall be effective in all cities, counties and states of the

5

 

United States and all countries in which the Company or any of its affiliates has an office as
of the Termination Date.

          6.3 Additional Acknowledgments. Executive acknowledges that the provisions of this
Section 6 are in consideration of employment with the Company and the additional good and valuable
consideration as set forth in this Agreement.

     7. Confidential Information.

          7.1 Obligation to Maintain Confidentiality. Executive acknowledges that the
information and data obtained by him during the course of his performance under this Agreement
concerning the business and affairs of the Company and its affiliates are the property of the
Company or such affiliates, including information concerning acquisition opportunities in the
Company’s or any of its affiliates’ industry of which Executive becomes aware during the Employment
Period (such information or data, the “Confidential Information”). Therefore, Executive agrees that
he will not disclose to any unauthorized person or use for his own account any of the Confidential
Information without the prior written consent of the Board, unless, and then only to the extent
that, the aforementioned Confidential Information (i) becomes generally known to the public other
than as a result of Executive’s acts or omissions to act, (ii) was already known to the Executive
prior to his employment hereunder, (iii) became known to the Executive from a third party owing no
duty of confidentiality to the Company, or (iv) is required to be disclosed under law, in which
case Executive shall cooperate to obtain an administrative protective order or its equivalent.
Executive agrees to destroy or to deliver to the Company upon termination of employment any and all
property belonging to the Company and its affiliates in his possession or under his control
including, but not limited to, any memoranda, notes, plans, records, reports, documents, discs and
other data storage media (and any copies thereof).

          7.2 Ownership of Property. Executive expressly understands and agrees that any and all
right, title or interest he has or obtains in any documentation, trade secrets, technical
specifications, data, know-how, inventions, concepts, ideas, techniques, innovations, discoveries,
improvements, developments, methods, processes, programs, designs, analyses, drawings, reports,
memoranda, marketing plans, and all similar or related information (whether or not patentable)
conceived, devised, developed, contributed to, made, reduced to practice or otherwise had or
obtained by Executive (either solely or jointly with others) during the Employment Period that
relate to the Company’s or any of its affiliates’ actual or anticipated business, research and
development, or existing or future products or services, or that arise out of Executive’s
employment with the Company or any of its affiliates (including any of the foregoing that
constitutes any proprietary information or records) (“Work Product”) belong to the Company or the
respective affiliate, and Executive hereby assigns, and agrees to assign, all of the above Work
Product to the Company or to such affiliate. Any copyrightable work prepared in whole or in part by
Executive in the course of his work for any of the foregoing entities shall be deemed a “work made
for hire” under the copyright laws, and the Company or such affiliate shall own all rights therein.
To the extent that any such copyrightable work is not a “work made for hire,” Executive hereby
assigns, and agrees to assign, to the Company or the respective affiliate all of his right, title
and interest in and to such copyrightable work. Executive shall promptly disclose such Work Product
and copyrightable work to the Board and perform all actions reasonably requested by the Board
(whether during or after the Employment Period) to establish and confirm the Company’s

6

 

or the respective affiliate’s ownership therein (including executing and delivering any
assignments, consents, powers of attorney and other instruments).

          7.3 Third Party Information. Executive understands that the Company and its affiliates
will receive from third parties confidential or proprietary information (“Third Party Information”)
subject to a duty on the Company’s and such affiliates’ part to maintain the confidentiality of
such information and to use it only for certain limited purposes. During the Employment Period and
thereafter, and without in any way limiting the provisions of Section 7.1 above, Executive will
hold Third Party Information in the strictest confidence and will not disclose to anyone (other
than in the ordinary course of Executive’s duties for the benefit of the Company or any subsidiary
or affiliate of the Company) or use, except in connection with his work for the Company or such
affiliates, Third Party Information without the prior written consent of the Board, other than as
required by law.

     8. Representations.

               (a) As an inducement to the Company to enter into this Agreement, the Executive represents and
warrants that there exists no contractual impediment on the Executive’s power, right or ability to
enter into this Agreement and to perform the Executive’s duties and obligations hereunder, other
than restrictions whose breach results solely in forfeiture of benefits to which the Executive
might otherwise be entitled.

               (b) The Company represents and warrants that (i) it is fully authorized by action of its Board
to enter into this Agreement and to perform its obligations under it, (ii) the execution, delivery
and performance of this Agreement by it does not violate any applicable law, regulation, order,
judgment or decree or any agreement, arrangement, plan or corporate governance document to which it
is a party or by which it is bound and (iii) upon the execution and delivery of this Agreement by
the parties, this Agreement shall be its valid and binding obligation, enforceable against it in
accordance with its terms, except to the extent that enforceability may be limited by applicable
bankruptcy, insolvency or similar laws affecting the enforcement of creditors’ rights generally.

     9. Certain Definitions. For purposes of this Agreement, the following terms shall have
the meanings specified in this Section 9:

          “Cause” means: (i) perpetration by the Executive of act involving fraud with respect to
the Company or any of its affiliates; (ii) substantial failure on the part of the Executive
in his performance of his duties as reasonably directed by the Board, after notice to
Executive and a reasonable opportunity to cure referencing Section 4.1 describing the nature
of such breach and the method of remedy and providing a reasonable opportunity to cure,
provided that the foregoing failure shall not be “Cause” if Executive in good faith believes
that such direction is illegal or unethical under the applicable code of professional
conduct and promptly so notifies the Board; (iii) the engaging in by the Executive of gross
misconduct, or gross negligence in the performance of his duties, which materially injures
the Company, (iv) the material breach by Executive of Sections 6 or 7 of this Agreement,
which materially injures the Company

7

 

or (v) the indictment of the Executive for, or the entry of a pleading of guilty or
nolo contendere by the Executive to, any felony (excluding automobile related offenses).

          “Change of Control” shall be deemed to have occurred if any of the following events
occurs after the Effective Date: (i) any person or group (within the meaning of Rule 13d-3
of the rules and regulations promulgated under the Securities Exchange Act) shall become, in
one or a series of transactions, whether through sale of stock, merger, or otherwise, the
beneficial owner of securities of the Company that possesses more than fifty percent (50%)
of the total voting power of the then outstanding securities of the Company, or of any
successor to the Company or to substantially all the business and assets of the Company;
(ii) a merger, consolidation or other transaction in which the Company combines with another
entity and after which the security holders of the Company do not retain, directly or
indirectly, and in respect of voting securities of the Company that they beneficially owned
prior to such transaction, at least a majority of the beneficial interest in the voting
securities of the surviving entity; or (iii) the sale, exchange, or other transfer of all or
substantially all of the Company’s business or assets.

          “Claim” means any claim, demand, request, investigation, dispute, controversy, threat,
discovery request, or request for testimony or information.

          “Disability” means that the Executive has been unable, due to physical or mental
incapacity, for a period of 90 consecutive days within any 365 consecutive day period to
substantially perform all of the material services contemplated under this Agreement. A
determination of Disability shall be made by the Executive (or his legal representative, if
he is incapable) and the Company each selecting a physician and these two together shall
select a third physician, whose determination as to disability shall be binding on all
parties.

          “ERISA” means the Employee Retirement Income Security Act of 1974, as amended.

          “Good Reason” means: (i) any breach by the Company, or any of its affiliates, of any
material provision of this Agreement, which breach has not been cured within 30 days after
notice of such breach, referencing Section 4.3 and describing the nature of such breach, has
been given by the Executive to the Company; (ii) any diminution in the Executive’s title or
Base Salary (iii) any material reduction in benefits provided to Executive pursuant to
Section 3.2 or 3.3, other than in connection with a reduction in benefits generally
applicable to senior executives of the Company; (iii) any substantial diminution in the
Executive’s overall duties and responsibilities or reporting obligations, which diminution
has not been cured within 30 days after notice of such diminution, referencing Section 4.3
and describing the nature of such diminution, has been given by the Executive to the
Company; or (iv) a Change of Control and the surviving entity shall not assume the
obligations of the Company hereunder.

          “Proceeding” means any actual or threatened suit or proceeding, whether civil,
criminal, administrative, investigative, appellate, formal, informal or other.

8

 

          “Securities Exchange Act” means the United States Securities Exchange Act of 1934, as
amended from time to time.

          “Termination Date” means the date that the Executive’s employment under this Agreement
terminates for any reason.

     10. Miscellaneous.

          10.1 Notices. All notices required or permitted under this Agreement shall be in
writing and shall be deemed effective upon personal delivery (which shall include delivery by
Federal Express or similar service) or upon deposit in the United States Post Office, by registered
or certified mail, return receipt requested, postage prepaid, addressed to the other party at the
address shown above, or at such other address or addresses as either party shall designate to the
other in accordance with this Section 10.1.

          10.2 Entire Agreement. This Agreement, together with the documents referred to in it,
constitutes the entire agreement between the parties concerning its subject matter and supersedes
all prior agreements and understandings, whether written or oral, relating to its subject matter.
There shall be no contractual or similar restrictions on the Executive’s activities following the
termination of his employment with the Company, other than as expressly set forth in this
Agreement. In the event of any inconsistency between any provision of this Agreement and any
provision of any handbook, manual, program, policy, agreement, plan, corporate governance document,
or other arrangement of the Company or any of its affiliates, the provisions of this Agreement
shall control unless the Executive otherwise agrees in a writing that expressly refers to the
provision of this Agreement whose control he is waiving.

          10.3 Amendment. This Agreement may be amended or modified only by a written instrument
that is executed by both parties and that specifically identifies the provision(s) and/or
Section(s) of this Agreement being amended.

          10.4 Waivers. No delay or omission by either party hereto in exercising any right
under this Agreement shall operate as a waiver of that or any other right. No waiver by any person
of any breach of any condition or provision contained in this Agreement shall be deemed a waiver of
any similar or dissimilar breach at the same or any prior or subsequent time. To be effective, any
waiver must be set forth in a writing signed by the waiving person and must specifically refer to
the condition(s) or provision(s) of this Agreement being waived.

          10.5 Successors and Assigns.

               (a) This Agreement shall be binding upon and inure to the benefit of the parties and their
respective successors, heirs (in the case of the Executive) and assigns.

               (b) No rights or obligations of the Company under this Agreement may be assigned or
transferred by the Company except that such rights and obligations may be assigned or transferred
pursuant to a merger, consolidation or other combination in which the Company is not the continuing
entity, or a sale or liquidation of all or substantially all of the

9

 

business and assets of the Company, provided that the assignee or transferee is the successor
to all or substantially all of the business and assets of the Company and such assignee or
transferee expressly assumes the liabilities, obligations and duties of the Company as set forth in
this Agreement. In the event of any merger, consolidation, other combination, sale of business and
assets, or liquidation as described in the preceding sentence, the Company shall use its best
efforts to cause such assignee or transferee to promptly and expressly assume the liabilities,
obligations and duties of the Company hereunder.

               (c) The Executive shall be entitled, to the extent permitted under applicable law and
applicable Company benefit plans, to select and change a beneficiary or beneficiaries to receive
any compensation or benefit hereunder following the Executive’s death by giving written notice
thereof to the Company. In the event of the Executive’s death or a judicial determination of his
incompetence, references in this Agreement to the Executive shall be deemed, where appropriate, to
refer to his beneficiary, estate or other legal representative.

          10.6 Governing Law. This Agreement shall be governed, construed, interpreted and
enforced in accordance with its express terms, and otherwise in accordance with the laws of the
State of New York without regard to its conflicts of law principles.

          10.7 Arbitration. All disputes concerning the application, interpretation or
enforcement of this Agreement or otherwise arising out of the relationship between Executive, on
the one hand, and the Company, on the other hand, except for those arising under Section 6 or 7 of
this Agreement, shall be resolved exclusively by final and binding arbitration before a single
arbitrator in accordance with the Employment Rules of the American Arbitration Association then in
effect. The arbitration shall be held in New York City, and the arbitrator shall have the authority
to permit the parties to engage in reasonable pre-hearing discovery.

          10.8 Jurisdiction. Any Claim arising out of or relating to this Agreement, other than
a Claim covered by Section 10.7, may be brought in the federal or state courts located in New York.
By execution and delivery of this Agreement, each of the parties hereto accepts for himself or
itself and in respect of his or its property, generally and unconditionally, the jurisdiction of
the aforesaid courts and waives any objection it may now or hereafter have as to the venue of any
proceeding brought in any such court in connection herewith or that any such court is an
inconvenient forum.

          10.9 Advancement of Costs and Expenses. The Company shall promptly advance to the
Executive (or his beneficiaries, if applicable) any cost (including reasonable attorneys’ fees)
incurred by them in connection with any Claim arising out of or relating to this Agreement, subject
to prompt repayment by the recipient in the event that the Company (and its affiliates, if
applicable) substantially prevails with respect to such Claim. Pending the resolution of any Claim
under Section 10.7 or otherwise, the Executive (and his beneficiaries) shall continue to receive
all payments and benefits due under this Agreement or otherwise.

          10.10 Waiver of Jury Trial. EACH PARTY TO THIS AGREEMENT HEREBY IRREVOCABLY WAIVES ALL
RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT
OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE

10

 

ACTIONS OF THE PARTIES TO THIS AGREEMENT IN THE NEGOTIATION, ADMINISTRATION, PERFORMANCE AND
ENFORCEMENT HEREOF.

          10.11 Captions. The captions of the sections of this Agreement are for convenience of
reference only and in no way define, limit or affect the scope or substance of any section of this
Agreement.

          10.12 Severability. In case any provision of this Agreement shall be invalid, illegal
or otherwise unenforceable, the validity, legality and enforceability of the remaining provisions
shall in no way be affected or impaired thereby.

          10.13 Taxes. The Company may withhold from any amount or benefit payable under this
Agreement taxes that it is required to withhold pursuant to any applicable law or regulation.

          10.14 Counterparts; Facsimile Signatures. This Agreement may be executed in any number
of counterparts, each of which will be deemed an original, and all of which will constitute one and
the same instrument. Signatures delivered by facsimile or by PDF shall be effective for all
purposes.

[SIGNATURE PAGE FOLLOWS]

11

 

          IN WITNESS WHEREOF, the parties hereto have executed this Employment Agreement as of the day
and year set forth above.

	 	 	 	 	 
	 	Company:

GLOBE SPECIALTY METALS INC.

 	 
	 	By:  	/s/ Jeffrey K. Bradley
 	 
	 	 	Name:  	Jeffrey K. Bradley 	 
	 	 	Title:  	Chief Executive Officer 	 
	 
	 	 	 	 	 
	 	Executive:

 	 
	 	/s/ Malcolm P. Appelbaum
 	 
	 	Malcolm P. Appelbaum 	 
	 	 	 

12

 

	 	 	 	 	 

ANNEX A

Terms of Stock Options

	•	 	The Executive will be issued a Stock Option Agreement pursuant to which Executive will
receive Stock Options as of the Effective Date which Stock Option Agreement will be consistent
with the terms and conditions set forth in this Annex A. The aggregate number of shares of
common stock for which the Stock Options granted thereunder is exercisable is 100,000. To the
extent possible, the Stock Options shall be classified incentive stock options. In addition,
upon a recommendation from the Chief Executive Officer made in his sole discretion, the
Compensation Committee of the Board of Directors may consider whether Executive shall be
eligible to receive an annual Stock Option grant of 5,000 shares of common stock.
	 
	•	 	The Stock Options shall vest and become exercisable in equal one-third (33.3%) increments
on the first, second, and third anniversaries of the Effective Date provided that the
Executive is then employed by the Company. At any time when the Executive is employed by the
Company, all of the Stock Options will accelerate and immediately become 100% vested in the
event of termination of Executive’s employment without Cause or by the Executive for Good
Reason.
	 
	•	 	The exercise price of the shares of common stock of the Company covered by the Stock Option
Agreement, subject to adjustment as described immediately below, shall be $18.00 per share for
the fraction vesting on the first anniversary, $23.00 per share for the first half of fraction
vesting on the second anniversary, $28.00 per share for the second half of fraction vesting on
the second anniversary, $35.50 per share for the first half of fraction vesting on the third
anniversary, and $43.00 per share for the second half of fraction vesting on the third
anniversary.
	 
	•	 	In the event that the outstanding shares of stock subject to a Stock Option Agreement are,
from time to time, changed into or exchanged for a different number or kind of shares of the
Company or other securities of the Company by reason of a merger, consolidation,
recapitalization event, reclassification, stock split, stock dividend, combination of shares,
or otherwise, the Company’s stock option plan administrator shall make an appropriate and
equitable adjustment in the number and kind of shares or other consideration as to which the
Executive’s Stock Option, or portions thereof then unexercised, shall be exercisable and the
exercise price therefore.

13exv4w2

Exhibit 4.2

RIGHTS AGENT AGREEMENT

          RIGHTS AGENT AGREEMENT, dated as of July 16, 2009, between Infineon Technologies AG, a public
limited company organized under the laws of the Federal Republic of Germany, and its successors
(the “Company”), and Deutsche Bank Trust Company Americas (the “Depositary”), a New York banking
corporation organized and existing under the laws of the State of New York and an indirect, wholly
owned subsidiary of Deutsche Bank AG.

W I T N E S S E T H:

          WHEREAS, the Company is issuing to holders of its ordinary shares transferable Rights to
subscribe for new ordinary shares and is extending the Offering to Holders of ADRs by issuing to
such Holders nontransferable ADS Rights to subscribe for New ADSs on a corresponding basis; and

          WHEREAS, the Company and the Depositary are parties to the Deposit Agreement which provides in
Section 4.4 thereof, inter alia, for the distribution of rights to holders of ADRs at the request
of the Company and upon compliance with applicable laws; and

          WHEREAS, the Company has requested that the Depositary make rights available to Holders of
ADRs in connection with the Offering and has taken all necessary action to register the offered
securities under the Securities Act and to otherwise comply with applicable laws; and

          WHEREAS, the Company has requested that the Depositary act as ADS Rights Agent in connection
with the Offering of New ADSs, and the Depositary is willing to accept such appointment, upon the
terms and subject to the conditions set forth herein;

          WHEREAS, the Company’s Registration Statement on Form F-3 filed with the Securities and
Exchange Commission with respect to New Shares, the Rights and ADS Rights has become effective
under the Securities Act of 1933;

          NOW, THEREFORE, in consideration of the premises and for other good and valuable consideration
the receipt of which is hereby acknowledged, the parties hereto agree as follows:

          1. Definitions. As used herein, the following terms shall have the meanings herein
specified and shall include in the singular number the plural and in the plural number the
singular:

          ADRs shall mean American Depositary Receipts issued under the Deposit Agreement
evidencing the ADSs.

1

 

          ADS Record Date shall mean, with respect to ADSs, 5:00 P.M. (New York City
time) on July 17, 2009 or such later date as shall be established by agreement between the
Company and the Depositary.

          ADS Rights shall have the meaning ascribed thereto in paragraph 2
hereof.

          ADS Rights Agent shall mean the Depositary, as agent of the Company pursuant to
paragraph 3 hereof, having its office for the administration of the ADRs at 60 Wall Street,
26th Floor, New York, New York 10005.

          ADS Rights Agent’s Office shall mean the office or agency of the ADS Rights
Agent for the receipt of deliveries of securities and instructions from Holders, which shall
be c/o American Stock Transfer & Trust Company, LLC, Operations Center, Attn: Reorganization
Department, 6201 15th Avenue, Brooklyn, New York 11219 for deliveries by mail or courier, ,
and c/o American Stock Transfer & Trust Company, LLC, Operations Center, Attn:
Reorganization Department, 59 Maiden Lane, New York, New York 10038 for hand deliveries.

          ADSs shall mean American Depositary Shares, each representing one Share,
evidenced by ADRs.

          ADS Offering shall mean the offer by the Company of the New ADSs to Holders on
the ADS Record Date made in the Prospectus.

          ADS Rights Certificate shall mean a nontransferable rights certificate
evidencing ADS Rights, substantially in the form annexed hereto as Exhibit A.

          Agreement shall mean this Agreement, as the same may be amended, supplemented
or otherwise modified from time to time in accordance with the terms hereof.

          Commission shall mean the United States Securities and Exchange Commission.

          Company Notice shall mean the notice provided by the Company to be mailed by
the ADS Rights Agent on behalf of the Company to the Holders, substantially in the form of
Exhibit B annexed hereto.

          Custodian shall mean the Depositary’s appointed custodian Deutsche Bank AG,
Frankfurt.

          Deposit Agreement shall mean the Amended and Restated Deposit Agreement dated
as of March 31, 2005 among the Company, the Depositary and each Holder and Beneficial Owner
(as defined in the Deposit Agreement) from time to time of ADRs issued thereunder.

          Effective Date shall mean the date on which the Registration Statement becomes
effective under the Securities Act.

2

 

          Eligible Institutions shall have a financial institution that is a member of
the Securities Transfer Agents Medallion Program, the Stock Exchange Medallion Program or
The New York Stock Exchange, Inc. Medallion Program.

          Expiration Date shall mean 5:00 P.M. (New York City time) on July 29,
2009, or such other date as shall be established by agreement between the Company and the
ADS Rights Agent.

          German Subscription Price shall mean the subscription price payable to exercise
a Right.

          Holders shall mean registered holders of ADRs as shown on the register
maintained by the Depositary or its agent on the ADS Record Date.

          Lost ADS Rights Certificate Form shall have the meaning ascribed thereto in
paragraph 6 (e) hereof.

          New ADSs shall mean the ADSs being offered for subscription by the Company
pursuant to the ADS Offering.

          New Shares shall mean the Shares being offered for subscription by the Company
pursuant to the Offering.

          Offering shall mean the offer by the Company of New Shares by way of Rights to
holders of Shares on the share register of the Company.

          Prospectus shall mean the final prospectus included as part of the Registration
Statement.

          Registration Statement shall mean the Registration Statement on Form F-3 in
respect of the New Shares, the Rights and the ADS Rights, including all exhibits thereto, as
amended at the time such Registration Statement becomes effective under the Securities Act
of 1933.

          Rights shall mean transferable rights to subscribe for the New Shares, with one
Right being issued in respect of each Share held of record, and nine Rights entitling the
holder to subscribe for four New Shares, which Rights are being offered pursuant to the
Offering.

          Securities Act of 1933 shall mean the United States Securities Act of 1933, as
amended.

          Shares shall mean the Company’s ordinary registered shares, notional value
€2.00 per share.

          Share Rights Agent shall mean Credit Suisse Securities (Europe) Limited and
Deutsche Bank AG, the subscription agents for the Company’s Shares in Germany.

3

 

          Subscription Form shall mean the subscription form mailed by the Company to all
holders of Shares which will contain instructions for the exercise of Rights.

          Subscription Price shall mean the U.S. dollar price at which Holders may
subscribe for New ADSs pursuant to the ADS offering, as specified in the Prospectus.

          2. ADS Offering. The Company proposes to offer to Holders nontransferable
rights (the “ADS Rights”) to subscribe for New ADSs at the Subscription Price, on the basis of one
ADS Right for each whole ADS held of record on the ADS Record Date, with nine ADS Rights entitling
the holder to subscribe for four New ADSs; provided that if the application of the foregoing ratio
would result in any Holder receiving an entitlement to fractional ADSs, the number of ADSs issuable
to such Holder shall be rounded down to the nearest whole ADS In addition, no ADS rights will be
issuable in respect of fractional ADSs. The ADS Offering will be made by means of the Prospectus
to be made available to such Holders. The ADS Rights will be evidenced by the ADS Rights
Certificates.

          3. Appointment of ADS Rights Agent. The Company hereby appoints the Depositary as ADS
Rights Agent to perform the duties specifically undertaken by it to perform pursuant to this
Agreement as agent for the Company in connection with the ADS Offering. The Depositary accepts
such appointment subject to the terms hereof.

          4. Allocation of ADS Rights; Rights. Each Holder of record on the ADS Record Date
will be entitled to one ADS Right for each whole ADS then held. The ADS Rights are to be evidenced
by ADS Rights Certificates. Sufficient quantities of the ADS Rights Certificates, Company Notices,
forwarding envelopes, and the cover letters and instructions referred to below will be supplied to
the ADS Rights Agent by the Company or its financial printer (the “Financial Printer”) on or about
July [___], 2009. Prior to the date in which the ADS Rights Agent or Depositary allocates ADS
Rights, the Depositary shall have received through the account with its Custodian, such number of
Rights that corresponds to the aggregate number of ADSs Rights to be issued hereunder.

          5. Preparation of ADS Rights Certificates. (a) the Company will cause ADS Rights
Certificates to be prepared, in the form of the attached Exhibit A, for issuance to the Holders on
the ADS Record Date. The Company authorizes the ADS Rights Agent to place the information set
forth in (b) below upon each ADS Rights Certificates prior to the ADS Record Date and to destroy
any ADS Rights Certificate which is not issued as a result of any transfer or assignment of all or
a portion of the ADRs in respect of which it was prepared.

          (b) The ADS Rights Agent will cause to appear on each ADS Rights Certificate (i) the name and
address of the Holder to whom such ADS Rights Certificate is issued, (ii) the number of ADS Rights
to which such Holder is entitled, and (iii) the number of such ADS Rights Certificate.

          (c) The ADS Rights Agent, in connection with the original issuance of the ADS Rights
Certificates, shall authenticate the ADS Rights Certificates by either the manual or the facsimile
signature of a duly authorized signatory of the ADS Rights Agent.

4

 

          6. Issuance of ADS Rights Certificates. (a) On the date hereof or as soon as
practicable thereafter (but in any event at least one business day prior to the ADS Record Date),
(i) the Company or its U.S. counsel will advise the ADS Rights Agent in writing that the
Registration Statement has been become effective, (ii) the Company will arrange for delivery by the
Financial Printer of sufficient numbers of copies of the Company Notice, cover letters and
instructions referred to below to the ADS Rights Agent, (iii) WilmerHale, U.S. counsel for the
Company, will deliver to the ADS Rights Agent two original copies of their opinion to the effect
that (A) the offering of ADS Rights and Rights to the holders of ADSs is covered by the
Registration Statement, which Registration Statement has become effective in accordance with the
Securities Act of 1933 and no stop order or investigatory proceeding with respect to the
Registration Statement are pending or threatened under such Act, and (B) the delivery and deposit
by the Company of New Shares against issuance of New ADSs is covered by the Company’s registration
statement on Form F-6, which registration statement has been declared effective and no stop order
or investigatory proceedings with respect to such registration statement are pending or threatened
under the Securities Act of 1933; (iv) Freshfields Bruckhaus Deringer, German counsel to the
Company, will deliver to the ADS Rights Agent two original copies of their opinion to the effect
that (A) the New Shares, when subscribed and issued, will be validly issued, fully paid and
non-assessable, (B) the Rights have been duly and validly authorized and issued by the Company and
are nonassessable and free of any preemptive rights, and (C) this Agreement has been duly
authorized, executed and delivered and constitutes a valid and legally binding obligation of the
Company, and (v)                      [US counsel] will advise the ADS Rights Agent in writing with a
memorandum detailing the ADS Rights Agent’s tax reporting requirements, if any, with respect to
each of the ADS Rights and the form or forms, if any, which the ADS Rights Agent must use to report
such ADS Rights.

          (b) As soon as practicable after the ADS Record Date and the Effective Date, the ADS Rights
Agent will send by first class mail (without registration or insurance), to each Holder of ADRs on
the ADS Record Date:

	 	(A)	 	an ADS Rights Certificate evidencing the ADS
Rights to which such Holder is entitled pursuant to the ADS Offering
	 
	 	(B)	 	a copy of the instructions relating to the
exercise of the ADS Rights Certificate and indicating where the
Prospectus can be accessed online, substantially in the form annexed
hereto as Exhibit D; and
	 
	 	(C)	 	a return envelope addressed to the
ADS Rights Agent for use by such Holder in connection with the
exercise of such ADS Rights Certificates;

          (c) In the event that any ADS Rights Certificate is returned to the ADS Rights Agent for any
reason and a proper delivery thereof cannot be effected, such ADS Rights Certificate will be held
by the ADS Rights Agent and will be treated as unexercised.

          (d) Commencing upon the release of the Company’s quarterly financial results on or about July
29, 2009, up until 5 p.m. New York City time on July 30, 2009, the ADS Rights Agent will accept
full withdrawals of previously exercised ADS Rights upon its receipt of a written notice of
withdrawal from a person who has validly exercised ADS

5

 

Rights, which notice shall identify such
person, indicate the total number of ADSs held by such person, the number of ADS rights exercised
and the subscription price paid in respect thereof, and shall include a statement that such person
is withdrawing its election to exercise all previously exercised subscription rights. Upon timely
receipt of a duly executed and completed notice of withdrawal, the ADS Rights Agent will promptly
return all subscription payments relating to the withdrawn ADS Rights (without interest) to the
person entitled thereto, net of any currency exchange fees and subject to any currency exchange
losses that may have been incurred in connection with any conversion of Euros into U.S. dollars
that may be required in order to return such payments.

          (e) The Company authorizes the ADS Rights Agent to waive proof of authority to sign by
individuals (including the right to waive signatures of co-fiduciaries and proof of appointment or
authority of any fiduciary or other person acting in a representative capacity). In the event that,
prior to the Expiration Date, any person notifies the ADS Rights Agent that the ADS Rights
Certificate to which such person is entitled has not been delivered, or has been lost, stolen or
destroyed, the ADS Rights Agent will furnish to such person a form (a “Lost ADS Rights Certificate
Form”) on which the ADS Rights Agent will indicate the name and address of the registered holder of
the Lost ADS Rights Certificate, the number of such ADS Rights Certificate and the number of ADS
Rights evidenced thereby. Upon payment by the claimant of such reasonable costs and expenses that
may be incurred in connection therewith, and on such reasonable terms as to evidence and indemnity
as the Company may reasonably require, the ADS Rights Agent will arrange for the issuance of a new
ADS Rights Certificate to any person from whom it has received a duly executed and completed Lost
ADS Rights Certificate Form prior to the Expiration Date provided, however, that
such issuance may be delayed by the ADS Rights Agent, in its discretion, pending receipt of an
indemnity from such person satisfactory to the Company and the ADS Rights Agent and confirmation
that such lost ADS Rights Certificate has not been exercised.

          7. Exercise of ADS Rights. On or about [July 30], 2009, the ADS Rights Agent shall
inform the Company of the number of ADS Rights which were not properly exercised by Holders.

          8. Acceptance of Subscriptions. (a) The Company hereby authorizes and
directs the ADS Rights Agent to accept subscriptions for New ADSs on behalf of the Company upon
payment of the Subscription Price and the exercise of ADS Rights Certificates in accordance with
the terms thereof and hereof. The Company further authorizes the ADS Rights Agent to refuse to
accept, in its discretion, any improperly completed or unexecuted ADS Rights Certificate.
Notwithstanding the foregoing, without further authorization from the Company, the ADS Rights Agent
shall accept, on or before the Expiration Date, except where otherwise specified, any of the
following:

(i) any subscription effected in accordance with the terms of the ADS Rights Certificates
and received by the ADS Rights Agent on or before the Expiration Date;

6

 

(ii) any subscription with respect to which a subscriber has failed to execute an ADS Rights
Certificate in the manner provided by the terms thereof, provided that (A) the subscriber
has indicated on such ADS Rights Certificate, or by written communication, the manner in
which the subscriber wishes to subscribe and (B) proper payment has been made by such
subscriber;

(iii) any subscription by payment of the Subscription Price accompanied by a check drawn on
a U.S. bank, notwithstanding that such check may not be cleared prior to the Expiration
Date, provided, however, that the ADS Rights Agent will not deliver the new
ADRs evidencing the New ADSs to the subscribing party until such subscribing party’s check
has cleared and provided, further, that in the event such party’s check does
not clear, the ADS Rights Agent shall use its best efforts to sell such New ADSs to cover
the payment for such subscription at a public or private sale, at such place or places and
upon such terms as it may deem proper, and the ADS Rights Agent may allocate the proceeds of
such sales for the account of the subscribers upon an averaged or other practicable basis
without regard to any distinctions among such subscribers because of exchange restrictions
or otherwise, and provided, further, that if such proceeds of sale are
insufficient to cover the payment for such subscription, the Company shall indemnify the ADS
Rights Agent against any losses it may incur in the event such check is not cleared by the
paying bank. In connection with any funds advanced by the ADS Rights Agent pending clearance
(or failure of clearance) of any checks, the Company shall reimburse, and pay, the ADS
Rights Agent any and all of its expenses incurred in connection therewith plus interest on
all funds advanced as if such advanced funds were in the form of a loan by the ADS Rights
Agent to the Company.

(iv) any subscription by an individual (and not by a corporation, partnership or
fiduciary) which is accompanied by a check drawn by an individual (and not by a corporation,
partnership or fiduciary) other than the subscriber, provided, that (a) the
ADS Rights Certificate surrendered therewith has been duly executed by the subscriber, (b)
the subscriber is the registered holder of such ADS Rights Certificate, (c) the check
tendered in payment of such subscription is drawn for the proper amount and to the order of
the ADS Rights Agent, and is otherwise in order and (d) there is no evidence indicating that
such check was delivered to the subscriber by the drawer thereof for any purpose other than
the payment of the accompanying subscription;

(v) any subscription by a custodian on behalf of a minor which is accompanied by a check
drawn by such custodian, if the provisos set forth in clause (iv) above are satisfied; and

(vii) any subscription by an individual, (and not by a corporation, partnership or
fiduciary) which is accompanied by a check drawn by a corporation, partnership or fiduciary
other than the subscriber, if the provisos set forth in clause (iv) above are satisfied.

          (b) The Company authorizes the ADS Rights Agent to waive proof of authority to sign (including
the right to waive signatures of co-fiduciaries and proof of

7

 

appointment or authority of any fiduciary or other person acting in a representative capacity)
in connection with any subscription with respect to which:

(i) the surrendered ADS Rights Certificate is registered in the name of an executor,
administrator, trustee, custodian for a minor or other fiduciary and has been executed by
such registered holder, provided that the New ADSs subscribed for are to be issued in the
name of such registered holder;

(ii) the surrendered ADS Rights Certificate is registered in the name of a corporation and
has been executed by an officer of such corporation, provided that the New ADSs subscribed
for are to be issued in the name of such corporation;

(iii) the surrendered ADS Rights Certificate has been executed by a bank, trust company or
broker as agent for the registered holder thereof, provided that the New ADSs subscribed for
are to be issued in the name of such registered holder; or

(iv) the surrendered ADS Rights Certificate is registered in the name of a decedent and has
been executed by a person who purports to act as the executor or administrator of such
decedent’s estate, provided that (a) such subscription is for not more than 50 New ADSs, (b)
the New ADSs are to be issued in the name of such person as executor or administrator of
such decedent’s estate, (c) the check tendered in payment of such subscription is drawn for
the proper amount and to the order of the ADS Rights Agent, and is otherwise in order, and
(d) there is no evidence indicating that such person is not the duly authorized
representative which such person purports to be.

In all cases other than those described in clauses (i) through (iv) above, the ADS Rights
Agent will be required to obtain all necessary proof of authority to sign in connection with
subscriptions for New ADSs; provided, however, that in the event that such proof of
authority has not been received on or prior to the Expiration Date, the ADS Rights Agent may obtain
advice from the Company or its U.S. counsel as to whether any such subscriptions may be accepted
and the ADS Rights Agent shall have no liability whatsoever in the event it acts in good faith in
accordance with such advice nor shall the ADS Rights Agent be required to issue such New ADSs in
the event it does not receive such advice from the Company prior to the Expiration Date and shall
have no liability whatsoever for any such action.

          (c) The Company authorizes the ADS Rights Agent to accept customary letters of indemnification
from Eligible Institutions with respect to non-conforming aspects of documents delivered in
connection with subscriptions for New ADSs.

          9. Reports by ADS Rights Agent. (a) the ADS Rights Agent will advise the Company by
letter or by facsimile transmission (i) on or about the Effective Date, as to the total number of
ADSs outstanding and the total number of registered Holders of ADRs as of a recent date and (ii) on
each business day in New York City during the period from July 21, 2009 through the Expiration Date
on which subscriptions are effected, as to (a) the total number of New ADSs subscribed for as of
the close of business on the previous business day pursuant to the exercise of ADS Rights
Certificates and (b) the aggregate amount of funds received by the ADS Rights Agent in payment of
such Subscriptions.

8

 

          (b) Not later than 5:00 P.M. (New York time) on                     , 2009, the ADS Rights Agent will
(i) telex its custodian information concerning the number of ADSs subscribed, authorizing and
instructing the custodian to complete, execute and deliver to the Share Rights Agent a Subscription
Form (which may be done electronically through the [                    ] system) reflecting such
information (and the information referred to in the next sentence) prior to 9:30 A.M. (                    
time) no later than on                     , 2009; and (ii) pay the German Subscription Price for the
number of Shares represented by such ADS for which payment was properly received.

          10. Subscription Price Payments. (a) The Subscription Price shall be tendered to the
ADS Rights Agent by subscribers in U.S. dollars. Such payment must be received by the ADS Rights
Agent no later than 5:00 P.M. on July 29, 2009. The Subscription Price to be collected by the ADS
Rights Agent from subscribers shall be, per Holder, equal to 110% of the German Subscription Price
converted into U.S. dollars at the noon buying rate for cable transfers in Euro as announced by the
Federal Reserve Board for customs purposes on July [10], 2009. The ADS Rights Agent, as agent for
the subscribers, will arrange to convert payments made on the basis of the Subscription Price from
U.S. dollars into Euro for payment to the Share Rights Agent. The ADS Rights Agent will make the
conversion from U.S. dollars into Euro on or about July [30], 2009. In the event that a payment of
the Subscription Price made by a holder of ADS Rights in respect of his subscription, when
converted into Euro, exceeds the German Subscription Price plus the issuance fees payable to the
Depositary for the number of New ADSs subscribed for upon exercise of such ADS Rights and the
expenses of the Depositary, the ADS Rights Agent shall, at the time it delivers New ADSs evidenced
by ADRs, remit the excess in U.S. dollars (without interest) to the subscriber, provided, however,
that the ADS Rights Agent shall not be obligated to return any funds to any subscriber or Holder
unless the amount owing to such subscriber or Holder exceeds $20.00.

          (b) In the event that a payment of the Subscription Price made by a holder of ADS
Rights in respect of his subscription, when converted into Euro, is less than the German
Subscription Price plus the issuance fees payable to the Depositary for the number of New ADSs
subscribed for upon exercise of such ADS Rights and the expenses of the Depositary, the ADS Rights
Agent may sell such New ADSs subscribed for by such subscriber at a public or private sale, at such
place or places and upon such terms as it may deem proper, and the ADS Rights Agent may allocate
the proceeds of such sales for the account of the subscribers on an averaged or other practicable
basis without regard to any distinctions among such subscribers because of exchange restrictions or
otherwise, in an amount sufficient to cover such deficiency (including interest and expenses). In
such event, the ADS Rights Agent will then send promptly any remaining New ADSs to such holder
together with a check in the amount of excess proceeds, if any, from such sale provided,
that, if the amount of such excess proceeds realized upon the sale of such holder’s ADRs is
less than $20.00, such excess proceeds need not be distributed. The ADS Rights Agent shall have
the full right to indemnity, reimbursement or otherwise as against the Company with respect to the
amount of any deficiency.

          11. Issuance of New ADSs. The Company shall provide notice to the ADS Rights Agent
that the allotment of New Shares has been made to the Depositary. As soon as practicable following
receipt of notification from the Depositary’s Custodian that the New

9

 

Shares issued in respect of the New ADSs subscribed for pursuant to the ADS Offering have been
delivered to the Custodian on behalf of the Depositary through the Clearstream system pursuant to
the terms of the Deposit Agreement dealing with deposits of Shares, and in accordance with the
terms of the Deposit Agreement, the Depositary shall commence preparing new ADRs (which may be in
the form of Direct Registration Receipts) to evidence the New ADSs and deliver them to the ADS
Rights Agent and the ADS Rights Agent will, if applicable, mail to each subscriber of New ADSs, in
the manner specified by such subscriber, a new ADR certificate representing, or a Direct
Registration System statement evidencing, the number of New ADSs for which such subscriber has
subscribed. Each new ADR certificate or Direct Registration System statement, as the case may be,
will be registered in the name specified by the subscriber on its surrendered ADS Rights
Certificate.

          12. Supplies of Documents. The Company will cause the definitive forms of the
Company Notice and such other items as are referred to in paragraph 6 above to be furnished to the
ADS Rights Agent when the same become available. The ADS Rights Agent shall have no obligations
hereunder to the extent it does not receive sufficient forms of such documents and items.

          13. Indemnification. The Company will indemnify the Depositary, in its capacities as
ADS Rights Agent and Depositary, as well as its employees, directors, officers and agents against,
defend and hold each of them harmless from, any and all claims, actions, judgments, damages,
losses, liabilities, costs, transfer or other taxes, or expenses (including without limitation
reasonable attorney’s fees and expenses) (each, a “Loss”, collectively “Losses”) which may be paid,
incurred or suffered by any of them, or to which any of them may become subject, arising out of or
incident to this Agreement, or which may arise out of acts performed or omitted in connection with
this Agreement, as the same may be amended, modified or supplemented from time to time, or the
administration of any duties hereunder, or arising out of or incident to compliance with the
instructions set forth herein or with any instructions delivered pursuant hereto, or as a result of
defending against any claim or liability resulting from such party’s actions hereunder;
provided, however that none of them shall be entitled to indemnification for any
Loss arising out of its gross negligence or willful misconduct. The obligations set forth in this
Section 13 shall survive the termination of this Agreement and the succession of substitution of
any indemnified person.

          14. Limitation of Duties and Liabilities

          (a) The ADS Rights Agent shall have no duties or obligations other than those specifically
set forth herein, including any duties or obligations under any other agreement, and no implied
duties or obligations shall be read into this Agreement against the ADS Rights Agent.

          (b) The ADS Rights Agent makes no, and will not be deemed to have made any, representations
with respect to, and shall have no duties, responsibilities or obligations with respect to
determining, the validity, sufficiency, value or genuineness of any securities or other documents
deposited with or delivered to it or any signature or endorsement set forth on or in connection
with such documents.

          (c) The ADS Rights Agent shall not be obligated to commence or voluntarily participate in any
suit, action or proceeding arising or related to this Agreement.

10

 

          (d) The ADS Rights Agent shall not be liable or responsible for any of the statements
of fact or recitals contained in this Agreement, any document relating to the ADS Rights or Rights,
or any other document or security delivered to it in connection with this Agreement, and shall not
be required to, and shall not, verify or determine the correctness, validity or accurateness of any
such statements or recitals contained therein.

          (e) The ADS Rights Agent may rely upon and comply with, and shall incur no liability for
relying upon and complying with, any certificate, instrument, opinion of counsel, notice, letter,
resolution, telegram, records, waiver, consent, order, certificate, or other paper, document,
instrument or security delivered to it believed by it to be genuine and to have been signed, sent
or presented by the proper party or parties.

          (f) The ADS Rights Agent will be entitled to rely upon any instructions or directions
furnished to it by the Company, and to apply to the Company for advice or instructions in
connection with its duties, and (i) will be entitled to treat as genuine, and as the document it
purports to be, any letter or other document or instrument furnished to it by such individuals and
(ii) shall not be liable for any action taken or suffered to be taken by it in good faith in
accordance with instructions of any such officer or for any delay in acting while waiting for those
instructions. Any application by the ADS Rights Agent for written instructions from the Company
may, at the option of the ADS Rights Agent, set forth in writing any action proposed to be taken or
omitted by the ADS Rights Agent under this Agreement and the date on/or after which such action
shall be taken or such omission shall be effective. The ADS Rights Agent shall not be liable for
any action taken by, or omission of, the ADS Rights Agent in accordance with a proposal included in
such application on or after the date specified in such application unless prior to taking any such
action (or the effective date in the case of an omission), the ADS Rights Agent shall have received
written instructions in response to such application specifying the action to be taken or omitted.

          (g) The ADS Rights Agent may perform any duties hereunder either directly or by or through its
nominees, correspondents, designees, agents, subagents or subcustodians and ADS Rights Agent shall
not be responsible for any misconduct or negligence on the part of any nominee, correspondent,
designee, agent, subagent or subcustodian appointed, instructed and supervised with due care by it
hereunder.

          (h) The ADS Rights Agent shall not be liable for any Losses or action taken or omitted
or for any loss or injury resulting from its or its agents actions or performance or lack of
performance of its duties hereunder in the absence of gross negligence or willful misconduct on its
part, in which case it shall be liable for only those Losses directly caused by such conduct. In
no event shall the ADS Rights Agent be liable for (i) acting in accordance with the instructions
from the Company or the Company’s counsel or any agent appointed by the Company to act on behalf of
Company, (ii) indirect, special, consequential or punitive damages, for lost profits, or for loss
of business, or (iii) any Losses due to forces beyond the control of the ADS Rights Agent or its
agents, including without limitation, strikes, work stoppages, acts of war or terrorism,
insurrection,
revolution, nuclear or natural catastrophes or acts of God, and interruptions, loss or
malfunctions of utilities, communications or computer (software and hardware) services.
Notwithstanding anything to the contrary contained in this Agreement, the aggregate liability of
the ADS Rights Agent and each of its agents with respect to, arising from or arising in connection
with this Agreement or from

11

 

any and all services provided or omitted to be provided hereunder,
whether in contract, tort or otherwise, is limited to, and shall not exceed, the fee compensation
received by the ADS Rights Agent specifically for providing the rights agency services hereunder.

          (i) The ADS Rights Agent shall not be liable for any Losses (as defined below) or action taken
or omitted or for any loss or injury resulting from its actions or performance or lack of
performance of its duties hereunder in the absence of gross negligence or willful misconduct on its
part, in which case it shall be liable for only those Losses caused by such conduct.

          (j) The ADS Rights Agent shall escheat any property held by the ADS Rights Agent in
accordance with applicable law.

          15. Dealing in Securities. The ADS Rights Agent, any affiliate thereof, and any
shareholder, director, officer or employee of the ADS Rights Agent or its affiliates may buy, sell
or deal in any of securities of the Company or become pecuniarily interested in any transaction in
which the Company may be interested, or contract with or lend money to the Company or otherwise act
as fully and freely as though the ADS Rights Agent were not the ADS Rights Agent under this
Agreement. Nothing herein shall preclude the ADS Rights Agent from acting in any other capacity
for the Company or for any other legal entity.

          16. Compensation of ADS Rights Agent. In consideration for the services to be
rendered herein, the Company shall compensate the ADS Rights Agent in accordance with and pursuant
to a written Fee Schedule as shall be agreed upon by the Company and the ADS Rights Agent from time
to time, but in any event prior to the ADS Rights Agent having any obligations to distribute New
ADSs, plus the ADS Rights Agent’s disbursements, charges and out-of-pocket expenses and counsel
fees and expenses incurred in connection with the preparation and execution of this Agreement and
the services rendered hereunder. No provision of this Agreement shall require the ADS Rights Agent
to expend or risk the ADS Rights Agent’s own funds or otherwise incur any financial liability in
the performance of any of the ADS Rights Agent’s duties hereunder or in the exercise of the ADS
Rights Agent’s rights.

          17. Governing Law; Jurisdiction; Certain Waivers. (a) This Agreement shall be
interpreted and construed in accordance with the internal substantive laws (and not the choice of
law rules) of the State of New York. All actions and proceedings brought by the ADS Rights Agent
relating to or arising from, directly or indirectly, this Agreement may be litigated in courts
located within the State of New York. The Company hereby submits to the personal jurisdiction of
such courts; hereby waives personal service of process and consents that any such service of
process may be made by certified or registered mail, return receipt requested, directed to the
Company at its address last specified for notices hereunder; and hereby waives the right to a trial
by jury in any action or proceeding with the ADS Rights Agent. All actions and proceedings brought
by the Company against the ADS Rights Agent relating to or arising from, directly or indirectly,
this Agreement shall be litigated only in courts located within the State of New York.

     (b) The invalidity, illegality or unenforceability of any provision of this Agreement shall
in no way affect the validity, legality or enforceability of any other provision; and if any
provision is held to be unenforceable as a matter of law, the other provisions shall not be
affected thereby and shall remain in full force and effect.

12

 

          19. Rights and Remedies. The rights and remedies conferred upon the parties hereto
shall be cumulative, and the exercise or waiver of any such right or remedy shall not preclude or
inhibit the exercise of any additional rights or remedies. The waiver of any right or remedy
hereunder shall not preclude or inhibit the subsequent exercise of such right or remedy.

          20. Representations and Warranties.

          The Company hereby represents, warrants and covenants that:

          (a) The Company is a corporation duly organized and validly existing under the laws of
the Federal Republic of Germany.

          (b) This Agreement has been duly authorized, executed and delivered on its behalf and
constitutes the legal, valid and binding obligation of the Company. The execution, delivery and
performance of this Agreement by the Company does not and will not violate any applicable law or
regulation and does not require the consent of any governmental or other regulatory body except for
such consents and approvals as have been obtained and are in full force and effect. For the
avoidance of doubt, all ADS Rights to be issued and delivered hereunder have been registered with
the Securities and Exchange Commission, and all transactions contemplated by this Agreement are in
compliance with, and not in violation of, the Securities Act of 1933, as amended, and the
Securities Exchange Act of 1934, as amended.

          21. Amendments. This Agreement may be amended, supplemented or otherwise modified
only by a written instrument executed and delivered by each of the parties hereto.

          22. No Third Party Beneficiaries. This Agreement is for the exclusive benefit of the
parties hereto and shall not be deemed to give any legal or equitable right, remedy or claim
whatsoever to any other person.

          23. Counterparts. This Agreement may be executed by the parties hereto on separate
counterparts, which counterparts taken together will be deemed to constitute one and the same
instrument.

13

 

          IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and
delivered by their duly authorized officers as of the day and year first above written.

	 	 	 	 	 	 	 
	 	 	INFINEON TECHNOLOGIES AG	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	DEUTSCHE BANK TRUST COMPANY AMERICAS	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 

14

 

	RIGHTS CERTIFICATE #: NUMBER OF RIGHTS THE TERMS AND CONDITIONS OF THE RIGHTS OFFERING
ARE SET FORTH IN THE COMPANY’S PROSPECTUS DATED JULY 16, 2009 (THE “PROSPECTUS”) AND ARE
INCORPORATED HEREIN BY REFERENCE. COPIES OF THE PROSPECTUS ARE AVAILABLE at www.sec.gov and
www.infineon.com. Infineon Technologies AG ADRs NON — TRANSFERABLE SUBSCRIPTION RIGHTS
CERTIFICATE Evidencing Non — Transferable Subscription Rights to Purchase American Depositary
Shares (ADS) of Infineon Technologies AG. Subscription Price: $2.99 per ADS THE SUBSCRIPTION
RIGHTS WILL EXPIRE IF NOT EXERCISED ON OR BEFORE 5:00 P.M., NEW YORK CITY TIME, ON July 29, 2009,
UNLESS EXTENDED BY THE COMPANY            REGISTERED OWNER: THIS CERTIFIES THAT the registered
owner whose name is inscribed hereon is the owner of the number of non-transferable subscription
rights (“Rights”) set forth above. For every nine Rights the holder may subscribe for and purchase
four ADSs of Infineon Technologies AG, each representing one ordinary share of Infineon
Technologies AG, at a subscription price of $2.99 per ADS (the “Basic Subscription Right”),
pursuant to a rights offering (the “Rights Offering”), on the terms and subject to the
conditions set forth in the Prospectus and the notice from Deutsche Bank Trust Company Americas as
Depositary Bank (the Depositary Bank) accompanying this Subscription Rights Certificate.
The Rights represented by this Subscription Rights Certificate may be exercised by completing
Form 1 and any other appropriate forms on the reverse side hereof and by returning the full
payment of the subscription price for each ADS of infineon Technologies AG in accordance with the
“Instructions from the Depositary Bank and the Prospectus.
This Subscription Rights Certificate is not valid unless countersigned by the subscription agent
and registered by the registrar. Dated: July  , 2009

 

 

	DELIVERY OPTIONS FOR SUBSCRIPTION RIGHTS CERTIFICATE Delivery other than in the manner or to
the addresses listed below will not constitute valid delivery.
If delivering by mail or overnight            If delivering by hand: American
courier: American Stock Transfer & Stock Transfer & Trust Company Attn:
Trust Company Operations Center            Reorganization Department 59 Maiden
Attn: Reorganization Department 6201 Lane New York, New York 10038
15th Avenue Brooklyn, New
York 11219
PLEASE PRINT ALL INFORMATION CLEARLY AND LEGIBLY.FORM 1-EXERCISE OF SUBSCRIPTION
RIGHTS To subscribe for ADS pursuant to your Basic Subscription Right, please complete lines (a)
and (b) and sign under Form 4 below. (a) EXERCISE OF BASIC SUBSCRIPTION RIGHT: Number of Rights
issued on whole number of ADS (1 ADS Right for each ADS held on record date) and must be exercised
in multiples of nine (9). Rights to exercise, ___divided by nine (9) = This number multiplied by 4
= new ADS This number rounded down to nearest whole new ADS = ___I apply for shares x $ 3.29 = $
___(no. of new ADS) (subscription price) (amount enclosed) (b) Total Amount of Payment Enclosed
= $ ___METHOD OF PAYMENT (CHECK ONE)  ̈ Check or bank draft drawn on a U.S. bank, or postal
telegraphic or express.  ̈ Money order payable to “American Stock Transfer & Trust Company, as
Subscription Agent.” Funds paid by an uncertified check may take at least five business days to
clear.  ̈ Wire transfer of immediately available funds directly to the account maintained by
American Stock Transfer & Trust Company, LLC, as Subscription Agent, for purposes of accepting
subscriptions in this Rights Offering at JPMorgan Chase Bank, 55 Water Street, New York, New York
10005, ABA #021000021, Account # American Stock Transfer FBO Infineon Rights, with reference to
the rights holder’s name. NON-TRANSFERABLE
FORM 2-DELIVERY TO DIFFERENT ADDRESS If you wish for the Infineon ADS underlying your
subscription rights, to be delivered to an address different from that shown on the face
of this Subscription Rights Certificate, please enter the alternate address below, sign
under Form 4 and have your signature guaranteed under Form 5. ___FORM
3-SIGNATURE TO SUBSCRIBE: I acknowledge that I have received the Prospectus for this
Rights Offering and I hereby irrevocably subscribe for the number of shares indicated
above on the terms and conditions specified in the Prospectus. Signature(s): _
IMPORTANT: The signature(s) must correspond with the name(s) as printed on the reverse of
this Subscription Rights Certificate in every particular, without alteration or
enlargement, or any other change whatsoever. FORM 4-SIGNATURE GUARANTEE Signature
Guaranteed: (Name of Bank or Firm) By: (Signature of Officer) IMPORTANT: The
signature(s) should be guaranteed by an eligible guarantor institution (bank, stock
broker, savings & loan association or credit union) with membership in an approved
signature guarantee medallion program pursuant to Securities and Exchange Commission Rule
17Ad-15. ~S.CONT FOR INSTRUCTIONS ON THE USE OF THE INFINEON ADS SUBSCRIPTION RIGHTS
CERTIFICATES, CONSULT AMERICAN STOCK TRANSFER AT TOLL FREE 877-248-6417 or 718-921-8317
FOR INTERNATIONAL CALLERS

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}]]