Document:

Amendment No. 1 to Revolving Credit Agreement

 Exhibit 10.42 
 Execution Version 
 MEMC
ELECTRONIC MATERIALS, INC. 
 as the Borrower 
 THE LENDING INSTITUTIONS NAMED HEREIN 
 as Lenders

 and 
 NATIONAL
CITY BANK, 
 as a Lender, the Swing Line Lender, the Issuing Bank, 
 the Administrative Agent and the Collateral Agent 
  

 AMENDMENT NO. 1 

dated as of 
 December 20,
2006, 
 to 
 REVOLVING CREDIT AGREEMENT 
 dated as of 
 July 21, 2005 
  

  

 AMENDMENT NO. 1 
 THIS AMENDMENT NO. 1 (this “Amendment”) is entered into as of December 20, 2006 (the “Amendment Closing Date”), among the following: 
 (i) MEMC ELECTRONIC MATERIALS, INC., a Delaware corporation (herein, together with its successors and assigns, the
“Borrower”); 
 (ii) the lending institutions signatory hereto (herein, together with their
successors and assigns, each a “Lender” and collectively, the “Lenders”); and 
 (iii) NATIONAL CITY BANK, a national banking association (successor to National City Bank of the Midwest), as a Lender, the Swing Line Lender, the Issuing Bank, and as the administrative agent (the “Administrative
Agent”), the collateral agent (the “Collateral Agent”). 
 PRELIMINARY STATEMENTS: 
 A. The Borrower, the Lenders and the Administrative Agent entered into the Revolving Credit Agreement, dated as of July 21, 2005 (the
“Credit Agreement”). All capitalized terms used in this Amendment but not otherwise defined shall have the meanings given to such terms in the Credit Agreement. 
 B. In connection with the Credit Agreement, the Borrower, the Subsidiary Guarantors and the Collateral Agent executed the Pledge Agreement, dated as of
July 21, 2005 (the “Pledge Agreement”). 
 C. The parties hereto desire to amend certain provisions of the Credit
Agreement and terminate the Pledge Agreement, as more fully set forth below. 
 NOW, THEREFORE, for good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows: 
 SECTION 1. AMENDMENTS & TERMINATION.
Effective on and as of the Amendment Effective Date (as defined in Section 2 of this Amendment): 
 1.1 AMENDMENT TO SCHEDULE 1.
Schedule 1 to the Credit Agreement shall be amended and restated as set forth at Exhibit A to this Amendment. 
 1.2 AMENDMENT OF SECTION
1.1. The definition of “Additional Security Document” is hereby deleted from Section 1.1 of the Credit Agreement. 
 1.3 AMENDMENT OF SECTION 2.7(F). Section 2.7(f) of the Credit Agreement is hereby amended and restated as follows: 
 (f)
Interest Rate Margins. As used herein the terms “Applicable Prime Rate Margin”, “Applicable Eurocurrency Margin” and “Applicable Commitment Fee Rate” shall mean the
particular rate per annum determined by the Administrative Agent in accordance with the Pricing Grid Table which appears below, based on the Borrower’s ratio of Consolidated Total Funded Debt as of the end of each fiscal quarter to Consolidated
EBITDA for the Testing Period most recently ended and the following provisions: 
 (A) On the Amendment Effective Date, until changed
hereunder in accordance with the following provisions, the Applicable Prime Rate Margin for Revolving Loans and Swing Line Loans will be 0.00 basis points per annum, the Applicable Eurocurrency Margin for Revolving Loans will be 34.00 basis points
per annum, and the Applicable Commitment Fee Rate shall be 8.00 basis points per annum. 

 (B) Commencing with the fiscal quarter of the Borrower ended on or nearest to
December 31, 2006, and continuing with each fiscal quarter thereafter, the Administrative Agent will determine the Applicable Prime Rate Margin or Applicable Eurocurrency Margin for any Revolving Loan or Swing Line Loan and the Applicable
Commitment Fee Rate in accordance with the Pricing Grid Table, based on the Borrower’s ratio of (x) Consolidated Total Funded Debt as of the end of the fiscal quarter, to (y) Consolidated EBITDA for the Testing Period ended on the
last day of the fiscal quarter, as identified in such Pricing Grid Table. Changes in the Applicable Prime Rate Margin, Applicable Eurocurrency Margin or Applicable Commitment Fee Rate based upon changes in such ratio shall become effective on the
first day of the month following the receipt by the Administrative Agent pursuant to section 8.1(a) or (b) of the financial statements of the Borrower, accompanied by the certificate and calculations referred to in section 8.1(c), demonstrating
the computation of such ratio, based upon the ratio in effect at the end of the applicable period covered (in whole or in part) by such financial statements. 
 (C) Notwithstanding the above provisions, during any period when (1) the Borrower has failed to timely deliver its consolidated
financial statements referred to in section 8.1(a) or (b), accompanied by the certificate and calculations referred to in section 8.1(c) or (2) an Event of Default has occurred and is continuing, the Applicable Prime Rate Margin and the
Applicable Eurocurrency Margin for Revolving Loans and Swing Line Loans and the Applicable Commitment Fee Rate shall be the highest rate per annum indicated therefor in the Pricing Grid Table, regardless of the Borrower’s ratio of Consolidated
Total Debt to Consolidated EBITDA at such time. 
 (D) Any changes in the Applicable Prime Rate Margin or Applicable
Eurocurrency Margin for Revolving Loans or Swing Line Loans and the Applicable Commitment Fee Rate shall be determined by the Administrative Agent in accordance with the above provisions and the Administrative Agent will promptly provide notice of
such determinations to the Borrower and the Lenders. Any such determination by the Administrative Agent pursuant to this section 2.7(f) shall be conclusive and binding absent manifest error. 
 PRICING GRID TABLE 
 (Expressed in Basis Points) 
  

							
	 Ratio of
 Consolidated Total
 Funded Debt
 To
 Consolidated
EBITDA
	 	 Applicable Prime Rate Margin
	 	 Applicable
 Eurocurrency Margin
	 	 Applicable
 Commitment Fee Rate

	Greater than or equal to 2.00 to
1.00	 	0.0	 	47.5	 	15.0
	Greater than or equal to 1.50 to
1.00 but less than 2.00 to 1.00	 	0.0	 	37.5	 	12.5
	Greater than or equal to 1.00 to
1.00 and less than 1.50 to 1.00	 	0.0	 	35.0	 	10.0
	Less than 1.00 to 1.00	 	0.0	 	34.0	 	8.0

  

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 1.4 AMENDMENT OF SECTION 4.1. Section 4.1(a) of the Credit Agreement shall be amended and restated
as follows: 
 4.1(a) Commitment Fees. The Borrower agrees to pay to the Administrative Agent fees (“Commitment
Fees”) for the account of each Non-Defaulting Lender for the period from and including the Amendment Effective Date to, but not including, the Maturity Date or, if earlier, the date upon which the Total Revolving Commitment has been
terminated, computed for each day at a rate per annum equal to the Applicable Commitment Fee Rate for such day on the amount of such Lender’s Revolving Commitment for such day. Commitment Fees shall be due and payable in arrears on
April 1, July 1, October 1 and January 1 and on the Maturity Date or, if earlier, the date upon which the Total Revolving Commitment has been terminated. 
 1.5 AMENDMENT TO SCHEDULE 7.2. Schedule 7.2 to the Credit Agreement shall be amended and restated as set forth at Exhibit B to this Amendment.

 1.6 AMENDMENT OF SECTION 8.12. Section 8.12 of the Credit Agreement shall be deleted in its entirety and replaced with the
following: 
 8.12 [Reserved]. 
 1.7 AMENDMENT OF SECTION 9.2. The last paragraph of Section 9.2 of the Credit Agreement shall be amended and restated as follows: 
 With respect to any Subsidiary which is a party to the Subsidiary Guaranty, such Subsidiary shall be released from the Subsidiary Guaranty if all of such Subsidiary’s capital stock (or other equity interests) are disposed of in
accordance with this Section 9.2; and the Administrative Agent and the Collateral Agent shall be authorized to take actions deemed appropriate by them in order to effectuate the foregoing. 
 1.8 AMENDMENT OF SECTION 9.4. Section 9.4 of the Credit Agreement shall be amended by adding an additional subclause (j) as follows:

 (j) Existing Letter of Credit: the letter of credit in the face amount of $2,550,000 issued by U.S. Bank, National Association for
the benefit of the Missouri Department of Natural Resources having a letter of credit number of SLCL120281 and an annual expiration date of June 9th with automatic annual extensions. 
  

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 1.9 TERMINATION OF PLEDGE AGREEMENT. Notwithstanding Sections 7.19 and 10.1(f) of the Credit Agreement,
the Pledge Agreement shall be terminated and shall be of no further force and effect and all Pledged Stock and Pledged Equity Interests (each as defined in the Pledge Agreement) shall be promptly returned to the Borrower by the Collateral Agent. The
termination of the Pledge Agreement pursuant to this Amendment shall not constitute a breach of the representation set forth in Section 7.19 of the Credit Agreement now or subsequent to the date hereof, and such termination shall not constitute
a Default or an Event of Default pursuant to Section 10.1(f) of the Credit Agreement. 
 1.10 EXISTING LETTER OF CREDIT. Notwithstanding
Section 3.1(d) of the Credit Agreement, the Existing Letter of Credit did not become a Letter of Credit under the Credit Agreement. The parties hereto acknowledge the terms of the Credit Agreement do not apply to the Existing Letter of Credit.

 SECTION 2. REPRESENTATIONS AND WARRANTIES. The Borrower represents and warrants as follows: 
 2.1 AUTHORITY. This Amendment has been duly authorized by all necessary corporate action on the part of the Borrower, has been duly executed and delivered
by a duly authorized officer of the Borrower and constitutes the valid and binding agreement of the Borrower enforceable in accordance with its terms, except to the extent that the enforceability thereof may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium or other similar laws generally affecting creditors’ rights and by equitable principles (regardless of whether enforcement is sought in equity or at law). 
 2.2 REPRESENTATIONS AND WARRANTIES. The representations and warranties of the Borrower contained in the Credit Agreement or in the other Credit Documents
are true and correct in all material respects on and as of the date hereof as though made on and as of the date hereof, except to the extent that such representations and warranties expressly relate to a specified date, in which case such
representations and warranties are hereby reaffirmed as true and correct when made. 
 2.3 NO CLAIMS. No Credit Party has any claim or offset
against, or defense or counterclaim to, the Borrower’s obligations or liabilities under the Credit Agreement or other Credit Documents. 
 2.4 NO EVENT OF DEFAULT. No Default or Event of Default has occurred or exists. 
 SECTION 3. CONDITIONS PRECEDENT. 
 This Amendment shall become effective on the date (the “Amendment Effective Date”) the following conditions shall have been
satisfied: 
 3.1 EXECUTION AND DELIVERY. This Amendment shall have been executed by the Borrower, the Administrative Agent and each Lender
and counterparts hereof as so executed shall have been delivered to the Administrative Agent. The Guarantor Acknowledgement attached hereto shall have been executed by the Subsidiary Guarantors and counterparts hereof as so executed shall have been
delivered to the Administrative Agent; and 
 3.2 PROCEEDINGS AND DOCUMENTS. All corporate and other proceedings and all documents incidental
to the transactions contemplated hereby shall be satisfactory in form and substance 

  

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satisfactory to the Administrative Agent, and the Administrative Agent and its special counsel and the Lenders shall have received all such counterpart
originals or certified or other copies of such documents as the Administrative Agent or its special counsel or any Lender may reasonably request; 
 and
thereafter this Amendment shall be binding upon and inure to the benefit of the Borrower, the Administrative Agent for the benefit of the Lenders, and the Lenders and their respective successors and assigns. 
 SECTION 4. MISCELLANEOUS. 
 4.1
RATIFICATIONS; FULL FORCE AND EFFECT. The terms and provisions set forth in this Amendment shall modify and supersede all inconsistent terms and provisions set forth in the Credit Agreement, and except as specifically modified or amended by the
terms of this Amendment, the Credit Agreement and the other Credit Documents and all provisions contained therein are, and will continue to be, in full force and effect and are hereby ratified and confirmed. 
 4.2 SUCCESSORS AND ASSIGNS. This Amendment shall be binding upon and inure to the benefit of the Borrower, the Lenders and the Administrative Agent and
their respective permitted successors and assigns. 
 4.3 SURVIVAL OF REPRESENTATIONS AND WARRANTIES. All representations and warranties made
in this Amendment shall survive the execution and delivery of this Amendment, and no investigation by the Administrative Agent or any Lender shall affect the representations and warranties or the right of the Administrative Agent or any Lender to
rely upon them. 
 4.4 REFERENCE TO CREDIT AGREEMENT. The Credit Agreement and any and all other agreements, instruments or documents now or
hereafter executed and delivered pursuant to the terms of the Credit Agreement as amended hereby, are hereby amended so that any reference therein to the Credit Agreement shall mean a reference to the Credit Agreement as amended hereby. 

4.5 EXPENSES. The Borrower agrees to pay on demand all costs and expenses incurred by the Administrative Agent and Lenders in connection with the
preparation, negotiation and execution of this Amendment, including without limitation, the reasonable costs and fees of the Administrative Agent’s special legal counsel, regardless of whether this Amendment becomes effective in accordance with
the terms hereof, and all costs and expenses incurred by the Administrative Agent or any Lender in connection with the enforcement or preservation of rights under the Credit Agreement, as amended hereby. 
 4.6 SEVERABILITY. Any term or provision of this Amendment held by a court of competent jurisdiction to be invalid or unenforceable shall not impair or
invalidate the remainder of this Amendment, and the effect thereof shall be confined to the term or provision so held to be invalid or unenforceable. 
 4.7 APPLICABLE LAW. This Amendment shall be governed by and construed in accordance with the laws of the State of New York. 
 4.8 HEADINGS. The headings, captions and arrangements used in this Amendment are for convenience only and shall not affect the interpretation of this Amendment. 
 4.9 ENTIRE AGREEMENT. This Amendment is specifically limited to the matters expressly set forth herein. This Amendment and all other instruments,
agreements and documents 

  

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executed and delivered in connection with this Amendment embody the final, entire agreement among the parties hereto with respect to the subject matter
hereof and supersede any and all prior commitments, agreements, representations and understandings, whether written or oral, relating to the matters covered by this Amendment, and may not be contradicted or varied by evidence of prior,
contemporaneous or subsequent oral agreements or discussions of the parties hereto. There are no oral agreements among the parties hereto relating to the subject matter hereof or any other subject matter relating to the Credit Agreement. 

4.10 COUNTERPARTS. This Amendment may be executed in any number of counterparts, each of which shall be deemed an original and all of which taken
together shall be deemed to be one and the same instrument. 
 4.11 SECURITY. The parties hereto acknowledge that pursuant to the terms of
this Amendment, the Commitments extended under the Credit Agreement are unsecured. 
 [Signature pages follow.] 
  

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 IN WITNESS WHEREOF, this Amendment has been duly executed and delivered as of the date first above
written. 
  

			
	 MEMC ELECTRONIC MATERIALS, INC.

		
	 By:
	 	 /s/ Kenneth H. Hannah

	 Name:
	 	Kenneth H. Hannah
	 Title:
	 	Senior Vice President & Chief Financial Officer
	
	 NATIONAL CITY BANK,

	 Individually as a Lender and in its
 Capacity as the Administrative Agent

		
	 By:
	 	 /s/ Eric Hartman

	 Name:
	 	Eric Hartman
	 Title:
	 	Senior Vice President

  
 SIGNATURE PAGE

 TO AMENDMENT NO. 1 
 FOR MEMC ELECTRONIC MATERIALS, INC. 

			
	U.S. BANK NATIONAL ASSOCIATION,
	 as a Lender

		
	By:	 	 /s/ Timothy M. Hill

	Name:	 	Timothy M. Hill
	Title:	 	Assistant Relationship Manager

 SIGNATURE PAGE 
 TO AMENDMENT NO. 1 
 FOR MEMC ELECTRONIC MATERIALS, INC. 

			
	LASALLE BANK NATIONAL
	ASSOCIATION, as a Lender
		
	By:	 	 /s/ David B. Vande Ven

	Name:	 	David B. Vande Ven
	Title:	 	Vice President

 SIGNATURE PAGE 
 TO AMENDMENT NO. 1 
 FOR MEMC ELECTRONIC MATERIALS, INC. 

			
	PNC BANK, NATIONAL ASSOCIATION, as
	a Lender
		
	By:	 	 /s/ Louis K. McLinden

	Name:	 	Louis K. McLinden
	Title:	 	Vice President

 SIGNATURE PAGE 
 TO AMENDMENT NO. 1 
 FOR MEMC ELECTRONIC MATERIALS, INC. 

			
	REGIONS BANK, as a Lender
		
	By:	 	 /s/ Daniel R. Kraus

	Name:	 	Daniel R. Kraus
	Title:	 	Vice President

 SIGNATURE PAGE 
 TO AMENDMENT NO. 1 
 FOR MEMC ELECTRONIC MATERIALS, INC. 

			
	FIFTH THIRD BANK (SOUTHERN
	INDIANA), as a Lender
		
	By:	 	 /s/ Robert M. Sander

	Name:	 	Robert M. Sander
	Title:	 	Vice President

 SIGNATURE PAGE 
 TO AMENDMENT NO. 1 
 FOR MEMC ELECTRONIC MATERIALS, INC. 

 Exhibit A 
 SCHEDULE 1 
 INFORMATION AS TO LENDERS AND COMMITMENTS 
  

			
	 Name of Lender
	  	Revolving Commitment
	 National City Bank
	  	$40,000,000  

		  	Swing Line Commitment:
$10,000,000
	 US Bank National Association
	  	$35,000,0000
	 LaSalle Bank National Association
	  	$35,000,000
	 PNC Bank, National Association
	  	$30,000,000
	 Union Planters Bank, N.A. d/b/a Regions Bank
	  	$30,000,000
	 Fifth Third Bank (Southern Indiana)
	  	$30,000,000
	 TOTAL
	  	$200,000,000.00

 SIGNATURE PAGE 
 TO AMENDMENT NO. 1 
 FOR MEMC ELECTRONIC MATERIALS, INC. 

 Exhibit B 
 Schedule 7.2 
 Information as to Subsidiaries 
  

					
	 Name of Subsidiary
	  	 Jurisdiction Where
Organized
	  	 Percentage of Outstanding Stock or Other Equity Interest
Owned (Indicating whether owned by the
Borrower or a
specified Subsidiary)

			
	 MEMC Electronic Materials France Sarl
	  	France	  	100% (MEMC Electronic Materials, S.p.A.)
			
	 MEMC Electronic Materials GmbH
	  	Germany	  	100% (MEMC Electronic Materials, S.p.A.)
			
	 MEMC Electronic Materials, Sdn. Bhd.
	  	Malaysia	  	100% (Borrower)
			
	 MEMC Electronic Materials Sales, Sdn. Bhd.
	  	Malaysia	  	100% (Borrower)
			
	 MEMC Electronic Materials, S.p.A.
	  	Italy	  	100% (Borrower)
			
	 MEMC Electronic Materials (UK) Ltd.
	  	United Kingdom	  	100% (MEMC Electronic Materials, S.p.A.)
			
	 MEMC Holding B.V.
	  	The Netherlands	  	100% (MEMC Electronic Materials, S.p.A.)
			
	 MEMC Holdings Corporation
	  	Delaware	  	100% (Borrower)
			
	 MEMC International, Inc.
	  	Delaware	  	100% (Borrower)
			
	 MEMC Japan Ltd.
	  	Japan	  	100% (Borrower)
			
	 MEMC Korea Company
	  	South Korea	  	 40% (MEMC International, Inc.)
 40% (MEMC Holding
B.V.)

			
	 MEMC Kulim Electronic Materials, Sdn. Bhd.
	  	Malaysia	  	75% (MEMC International, Inc.)
			
	 MEMC Pasadena, Inc.
	  	Delaware	  	100% (Borrower)
			
	 MEMC Singapore Pte. Ltd.
	  	Singapore	  	100% (MEMC International, Inc.)
			
	 Taisil Electronic Materials Corporation
	  	Taiwan	  	 54.95% (Borrower)
 45.00% (MEMC International,
Inc.)

 SIGNATURE PAGE 
 TO AMENDMENT NO. 1 
 FOR MEMC ELECTRONIC MATERIALS, INC. 

 GUARANTOR ACKNOWLEDGMENT 
 The undersigned each consents and agrees to and acknowledges the terms of the foregoing Amendment No. 1 to Credit Agreement, dated as of
December 20, 2006 (the “Amendment”). The undersigned each further agrees that its respective obligations pursuant to the Subsidiary Guaranty shall remain in full force and effect and be unaffected hereby. 
 The undersigned each hereby represents and warrants that there exists no claim or offset against, or defense or counterclaim to, any of its obligations
or liabilities under the Credit Agreement or the Subsidiary Guaranty, as applicable, or any other Credit Document to which it is a party. 
 [Signatures follow.] 

 IN WITNESS WHEREOF, this Guarantor Acknowledgment has been duly executed and delivered as of the date of
the Amendment. 
  

			
	MEMC HOLDINGS CORPORATION
		
	By:	 	 /s/ Kenneth H. Hannah

	Name:	 	Kenneth H. Hannah
	Title:	 	President & Assistant Secretary
	
	MEMC INTERNATIONAL, INC.
		
	By:	 	 /s/ Kenneth H. Hannah

	Name:	 	Kenneth H. Hannah
	Title:	 	President & Assistant Secretary
	
	 MEMC PASADENA, INC.

		
	By:	 	 /s/ Kenneth H. Hannah

	Name:	 	Kenneth H. Hannah
	Title:	 	Chief Financial Officer & Assistant SecretaryEmployment Agreement between the Company and Nabeel Gareeb

 Exhibit 10.43 
 EMPLOYMENT AGREEMENT 
 This EMPLOYMENT AGREEMENT (the “Agreement”) is entered into as of the 25th
day of October, 2006 (the “Effective Date”) by and between MEMC Electronic Materials Inc., a Delaware corporation (the “Company”), and Nabeel Gareeb (“Executive”). 
 WITNESSETH: 
 WHEREAS, the Company desires to
continue to employ Executive as an executive officer of the Company and Executive desires to continue to be employed by the Company on the terms and conditions set forth herein; 
 NOW, THEREFORE, in consideration of the premises and the mutual covenants and promises contained herein and for other good and valuable consideration,
the Company and Executive hereby agree as follows: 
 1. Term; Position and Responsibilities. Unless Executive’s employment shall
sooner terminate pursuant to Section 4 hereof, the Company shall employ Executive on the terms and subject to the conditions of this Agreement for the term commencing on the Effective Date and ending on December 31, 2010, provided
that the term shall be automatically renewed for successive one-year terms following the expiration of the initial term described above (the initial term and each additional one-year term each, a “Term”), unless either party
provides the other party with notice pursuant to Section 9(f) at least sixty (60) calendar days before the expiration of the applicable Term of its (or his) intention not to renew such Term, in which case the Executive’s employment
shall terminate at the end of such Term. The entire period during which Executive is employed by the Company pursuant to this Agreement shall be referred to as the “Employment Period.” During the Employment Period, Executive shall
serve as Chief Executive Officer and President of the Company and shall have such duties and responsibilities as are customarily assigned to individuals serving in such positions and such other duties as the Company specifies from time to time.
During the Employment Period, the Company will also cause the Board of Directors of the Company (the “Board”) to nominate Executive for re-election to the Board when his term expires. Executive shall comply with all policies and procedures
of the Company. Executive shall devote all of his skill, knowledge, commercial efforts and working time to the conscientious and faithful performance of his duties and responsibilities for the Company (except for (i) vacation time as set forth
in Section 3(b) hereof and absence for sickness or similar disability and (ii) to the extent that it does not interfere with the performance of Executive’s duties hereunder, (A) such reasonable time as may be devoted to the
fulfillment of Executive’s civic responsibilities, (B) such reasonable time as may be necessary from time to time for personal financial matters and (C) certain other activities with the prior written consent of the Board. 

2. Compensation. 
 (a) Base
Salary. As compensation for the services to be performed by Executive during the Employment Period, the Company shall pay Executive a base salary at an 

  

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annualized rate of $850,000, payable in installments on the Company’s regular payroll dates. Executive’s base salary shall be reviewed annually by
the Board and may be adjusted upwards by the Board, in its sole discretion. The annual base salary payable to Executive under this Section 2(a) shall hereinafter be referred to as the “Base Salary.” 
 (b) Annual Bonus. During the Employment Period, Executive shall have the opportunity to earn an annual bonus (an “Annual Bonus”)
in respect of each calendar year in accordance with this Section 2(b) and pursuant to the terms of the Company’s Annual Incentive Plan then existing for such calendar year; provided, however, that, except as may be provided in
Section 4(f) hereof, the Annual Bonus for any calendar year shall be payable to Executive only if Executive is employed by the Company on December 31 of such year. In respect of calendar year 2007 and thereafter, Executive will have a
target bonus of 100% of Executive’s Base Salary and a maximum bonus of 200% of Executive’s Base Salary. Any Annual Bonus that becomes payable to Executive shall be payable in the form of cash. The amount of any Annual Bonus and all other
terms and conditions related thereto (including without limitation any performance criteria) shall be determined by the Board, in its sole discretion. 
 (c) Stock Options. 
 (i) Prior Grants. The Executive was granted certain awards prior to the
Effective Date (the “Prior Grants”). The Prior Grants shall continue in accordance with their terms as amended from time to time, including the amendment of the “Service Option” to comply with Section 409A of the
Internal Revenue Code of 1986, as amended (the “Code”). 
 (ii) Annual Grant. For any calendar year during the
Employment Period, the Board in its discretion may make an award to Executive under the Company’s 2001 Equity Plan or any successor plan thereto. The size and vesting of any such award shall be in the discretion of the Board. Notwithstanding
the foregoing, in connection with stock option grants to be provided to the Executive simultaneously with the execution of this Agreement, Executive understands that the Company does not intend to grant him any stock options for the first four years
of the Employment Period. 
 3. Employee Benefits and Perquisites. 
 (a) Participation in Employee Benefit Plans. During the Employment Period, Executive shall be eligible to participate in the employee benefit
plans and programs maintained by the Company from time to time and generally available to the senior executives of the Company including to the extent maintained by the Company life, medical, dental, accidental and disability insurance plans and
profit sharing, pension, retirement, deferred compensation and savings plans, in accordance with the terms and conditions thereof as in effect from time to time. 
 (b) Vacation. During the Employment Period, Executive shall be entitled to the same amount of annual vacation that is generally available to the senior executives of the Company, as may be increased from time
to time consistent with the Company’s past practices. 
 4. Termination of Employment. Executive’s employment may be
terminated prior to the end of the Term specified in Section 1 hereof as follows: 
 (a) Termination Due to Death or Disability.
Executive’s employment may be terminated by the Company due to Executive’s Disability (as defined below). In the event that Executive’s employment hereunder terminates due to his death or is terminated by the Company due to
Executive’s Disability, no termination benefits shall be payable to or in respect of Executive except as provided in Section 4(f)(ii). For purposes of this Agreement, “Disability” shall mean a physical or mental condition
entitling Executive to benefits under the long-term disability policy maintained by the Company, as such policy may be amended from time to time. Executive’s employment shall be deemed to have terminated as a result of Disability on the date as
of which he is first entitled to receive disability benefits under such policy. 
  

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 (b) Termination by the Company for Cause. Executive’s employment may be terminated by the
Company for Cause (as defined below). In the event of a termination of Executive’s employment by the Company for Cause, no termination benefits shall be payable to or in respect of Executive except as provided in Section 4(f)(ii). For
purposes of this Agreement, “Cause” shall mean (i) the failure of Executive to make a good faith effort to substantially perform his duties hereunder (other than any such failure due to Executive’s Disability) or
Executive’s insubordination with respect to a specific resolution of the Board; (ii) Executive’s dishonesty, gross negligence in the performance of his duties hereunder or engaging in willful misconduct, but only if such action or
omission has caused or is reasonably expected to result in direct or indirect material injury to the Company or any of its Affiliates (as defined below); (iii) breach by Executive of any material provision of this Agreement or of any other
written agreement with the Company or any of its Affiliates or material violation of any Company policy applicable to Executive; or (iv) Executive’s indictment for a crime that constitutes a felony or other crime of moral turpitude or
fraud that reasonably could impair Executive’s ability to satisfactorily perform his duties hereunder. If, subsequent to Executive’s termination of employment hereunder for other than Cause, it is determined in good faith by the Company
that Executive’s employment could have been terminated for Cause hereunder, Executive’s employment shall, at the election of the Company, be deemed to have been terminated for Cause retroactively to the date the events giving rise to Cause
occurred. Notwithstanding the foregoing, a failure, insubordination or breach described in items (i) and (iii) shall not constitute Cause unless the Company shall have first given Executive written notice describing the failure,
insubordination or breach and a reasonable opportunity, not to exceed ten (10) days, to cure such failure, insubordination or breach. 
 (c) Termination Without Cause. Executive’s employment may be terminated by the Company Without Cause (as defined below). In the event of a termination of Executive’s employment by the Company Without Cause, no termination
benefits shall be payable to or in respect of Executive except as provided in Section 4(f)(i). A termination “Without Cause” shall mean a termination of Executive’s employment by the Company during the Term specified in
Section 1 hereof other than due to Executive’s death, Disability or for Cause. 
 (d) Termination by Executive. In the event
that Executive terminates his employment for Good Reason (as defined below), Executive shall be entitled to the termination benefits described in Section 4(f)(i). In the event that Executive terminates his employment Without Good Reason (as
defined below), no termination benefits shall be payable to or in respect of Executive except as provided in Section 4(f)(ii). A termination of employment by 

  

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Executive for “Good Reason” shall mean a termination by Executive of his employment with the Company following the occurrence, without
Executive’s consent, of any of the following events: (i) the Company’s failure to satisfy the material terms of the Agreement or (ii) relocation of Executive’s principal work location to more than twenty-five (25) miles
from Executive’s current principal work location, provided that, (x) within thirty (30) days following the later of the occurrence of any of the events set forth herein or the Executive’s knowledge of such events,
Executive shall have delivered written notice to the Company of his intention to terminate his employment for Good Reason, which notice specifies in reasonable detail the circumstances claimed to give rise to Executive’s right to terminate his
employment for Good Reason, and the Company shall not have cured such circumstances to the reasonable satisfaction of Executive within thirty (30) days after receipt of such notice and (y) Executive delivers a Notice of Termination to the
Company in accordance with Section 4(e) within ten (10) days following the Company’s failure to cure such circumstances within the time period specified above. A termination “Without Good Reason” shall mean a
termination of Executive’s employment by Executive during the Term specified in Section 1 hereof other than a termination of Executive’s employment by Executive for Good Reason in accordance with the foregoing procedures. 

(e) Notice of Termination; Date of Termination. 
 (i) Notice of Termination. Any termination by the Company pursuant to Section 4(a), 4(b) or 4(c), or by Executive pursuant to Section 4(d), shall be communicated by a Notice of Termination addressed
to the other party to this Agreement in accordance with the notice provisions of Section 9(f). A “Notice of Termination” shall mean a notice stating that Executive or the Company, as the case may be, is electing to terminate
Executive’s employment with the Company and stating the proposed effective date of such termination, provided such effective date shall not be sooner than the dates provided in Section 4(e)(ii). 
 (ii) Date of Termination. The term “Date of Termination” shall mean (i) if Executive’s employment is terminated by his
death, the date of his death, (ii) if Executive’s employment is terminated by the Company for Cause or Without Cause, the date on which Notice of Termination is given or, if later, the effective date of termination specified in such Notice
of Termination, (iii) if Executive’s employment is terminated due to either party providing the other party with notice of non-renewal of the Term in accordance with Section 1 hereof, the last day of such Term, (iv) if
Executive’s employment is terminated due to Executive’s Disability, the date specified in the applicable Notice of Termination, provided that such date shall not be less than thirty (30) days after the date on which Notice of
Termination is given, and (v) if Executive’s employment is terminated by Executive for any reason, the date specified in the applicable Notice of Termination, provided that such date shall not be less than thirty (30) days after the
date on which Notice of Termination is given. 
 (f) Payments Upon Certain Terminations. 
 (i) Termination by the Company Without Cause or by Executive for Good Reason. In the event Executive’s employment is terminated by the
Company Without Cause or by Executive for Good Reason at any time prior to the end of the Term specified in Section 1 hereof, the Company shall pay to Executive (i) his Base Salary through the Date of Termination and (ii) his Annual
Bonus, if any, earned in the calendar year immediately preceding the calendar 

  

 4 

 
year in which the Date of Termination occurs, in each case to the extent not yet paid, within thirty (30) days after the Date of Termination. In
addition, in the event Executive’s employment is terminated by the Company Without Cause or by Executive for Good Reason, in either case, prior to the end to the Term specified in Section 1 hereof, subject to the effectiveness of
Executive’s execution of a general release and waiver of all claims against the Company, its Affiliates and their respective officers and directors in a form reasonably satisfactory to the Company and subject to Executive’s compliance with
the terms and conditions contained in this Agreement, Executive (or, following his death, Executive’s estate) shall be entitled to (iii) the continuation of Executive’s Base Salary for the one-year period beginning on the Date of
Termination (the “Severance Period”) and (iv) continued coverage under the Company’s group health care plan through the earlier of the end of the Severance Period and the date the Executive becomes eligible for coverage
under another group health care plan. Equity awards held by the Executive on the Date of Termination shall be governed by the applicable option plans and/or agreements for such awards. 
 (ii) Termination Due to Executive’s Death or Disability, by the Company for Cause, by Executive Without Good Reason, or as a result of failure to
renew the Term. If, at any time prior to the end of the Term specified in Section 1 hereof, Executive’s employment is terminated due to Executive’s death or Disability, by the Company for Cause, by Executive Without Good Reason,
or as a result of either party serving notice of non-renewal of the Term as provided in Section 1, the Company shall pay to Executive (or, in the event of Executive’s death, to his estate) (i) his Base Salary through the Date of
Termination and (ii) his Annual Bonus, if any, earned in the calendar year immediately preceding the calendar year in which the Date of Termination occurs, in each case to the extent not yet paid, within thirty (30) days following the Date
of Termination. Equity awards held by the Executive on the Date of Termination shall be governed by the applicable option plans and/or agreements for such awards. 
 (iii) Except as specifically set forth in this Section 4(f), Executive shall not be entitled to receive any payments or benefits under any such plan, policy, program or practice providing any bonus or incentive
compensation or severance compensation or benefits (and the provisions of this Section 4(f) shall supersede the provisions of any such plan, policy, program or practice), except as may be required with respect to any vested benefits under any
tax-qualified plan maintained or contributed to by the Company or Section 4980B of the Code. For avoidance of doubt, upon any termination of Executive’s employment, any outstanding Options not yet vested as of the Date of Termination shall
expire and be canceled effective as of the Date of Termination; provided, however, that Executive shall be entitled to retain any vested options in accordance with the applicable option plans and/or agreements for such options. 
 (g) Resignation upon Termination. Effective as of any Date of Termination under this Section 4 or otherwise, Executive shall automatically
and without taking any further actions be deemed to have resigned from all positions then held by him with the Company and all of its Affiliates. 
 5. Share Ownership Guidelines. 
 The Participant agrees to comply with the share ownership guidelines adopted by the Board
on October 25, 2006, which require the Participant to own at least 100,000 shares of 

  

 5 

 
Common Stock (excluding shares underlying unexercised options held by the Participant). The Participant agrees to use his best efforts to raise his level of
share ownership to 100,000 shares by no later than the six-month anniversary of the date hereof, subject to approval of the Company’s Compensation Committee and compliance with the Company’s insider trading policies and applicable
securities laws. The Executive shall not be required under the guidelines to own more than 100,000 shares unless such change in ownership requirements is mutually agreed to by the Executive and the Company. 
 6. Confidentiality Agreement. 
 The
provisions of the confidentiality agreement between Executive and the Company dated as of May 1, 2002, a copy of which is attached as Exhibit A (the “Confidentiality Agreement”), under the headings “Confidential
Information,” “Competitive Activity” and “Ideas, Inventions or Discoveries” shall continue in full force and effect and are herein incorporated by reference. In the event of any inconsistency between the provisions of this
Agreement and the provisions of the Confidentiality Agreement, the provisions of this Agreement shall control. 
 7. Injunctive Relief
with Respect to Covenants; Forum, Venue and Jurisdiction. Executive acknowledges and agrees that the covenants, obligations and agreements of Executive referenced in Section 6 hereof and contained in the Confidentiality Agreement relate to
special, unique and extraordinary matters and that a violation of any of the terms of such covenants, obligations or agreements will cause the Company irreparable injury for which adequate remedies are not available at law. Therefore, Executive
agrees that the Company shall be entitled to an injunction, restraining order or such other equitable relief (without the requirement to post bond or any other security) as a court of competent jurisdiction may deem necessary or appropriate to
restrain Executive from committing any violation of such covenants, obligations or agreements. These injunctive remedies are cumulative and in addition to any other rights and remedies the Company may have. 
 8. Entire Agreement. Subject to the terms of the various plans and documents referenced herein, this Agreement constitutes the entire agreement
among the parties hereto with respect to Executive’s employment and his right to compensation and benefits, including without limitation severance or termination pay. All prior correspondence and proposals (including, but not limited to,
summaries of proposed terms) and all prior promises, representations, understandings, arrangements and agreements relating to such subject matter (including, but not limited to, those made to or with Executive by any other Person and those contained
in any prior offer, employment, consulting or similar agreement entered into by Executive and the Company or any predecessor thereto or Affiliate thereof) are merged herein and superseded hereby. 
 9. Miscellaneous. 
 (a) Binding
Effect; Assignment. This Agreement shall be binding on and inure to the benefit of the Company and its successors and permitted assigns. This Agreement shall also be binding on and inure to the benefit of Executive and his heirs, executors,
administrators and legal representatives. This Agreement shall not be assignable by any party 

  

 6 

 
hereto without the prior written consent of the other parties hereto, except that the Company may effect such an assignment without prior written approval of
Executive upon the transfer of all or substantially all of its business and/or assets (by whatever means). 
 (b) Governing Law. This
Agreement shall be governed by and construed in accordance with the laws of the State of Delaware without reference to principles of conflicts of laws. 
 (c) Taxes. The Company may withhold from any payments made under this Agreement all applicable taxes, including but not limited to income, employment and social insurance taxes, as shall be required by law.

 (d) Amendments. No provision of this Agreement may be modified, waived or discharged unless such modification, waiver or discharge
is approved by the Board or a Person authorized thereby and is agreed to by Executive. No waiver by any party hereto at any time of any breach by any other party hereto of, or compliance with, any condition or provision of this Agreement to be
performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or subsequent time. 
 (e) Severability. In the event that any one or more of the provisions of this Agreement shall be or become invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the
remaining provisions contained herein shall not be affected thereby. In addition, if any of the provisions referenced in Section 6 hereof and contained in the Confidentiality Agreement is for any reason held by a court to be excessively broad
as to duration, geographical scope, activity, subject matter or otherwise then such provision will be construed or judicially modified so as to thereafter be limited or reduced to the extent required to be enforceable in accordance with applicable
law; it being understood and agreed that the parties hereto regard such restrictions as reasonable and compatible with their respective rights. 
 (f) Notices. Any notice or other communication required or permitted to be delivered under this Agreement shall be (i) in writing, (ii) delivered personally, by courier service or by certified or registered mail,
first-class postage prepaid and return receipt requested, (iii) deemed to have been received on the date of delivery or, if so mailed, on the third business day after the mailing thereof, and (iv) addressed as follows (or to such other
address as the party entitled to notice shall hereafter designate in accordance with the terms hereof): 
  

	 	(A)	If to the Company, to it at: 

 MEMC
Electronic Materials, Inc. 
 501 Pearl Drive (City of O’ Fallon) 
 P.O. Box 8 
 St. Peters, Missouri 63376 
 Attention: General Counsel 
  

	 	(B)	if to Executive, to him at his residential address as currently on file with the Company. 

  

 7 

 Copies of any notices or other communications given under this Agreement shall also be given to:

 Cleary, Gottlieb, Steen & Hamilton 
 One Liberty Plaza 
 New York, New York 10006 
 Attention: A. Richard Susko, Esq. 
 (g) Voluntary Agreement; No Conflicts. Executive hereby represents and warrants to the Company that he is legally free to accept and perform his
employment with the Company, that he has no obligation to any other person or entity that would affect or conflict with any of Executive’s obligations pursuant to such employment, and that the complete performance of the obligations pursuant to
Executive’s employment will not violate any order or decree of any governmental or judicial body or contract by which Executive is bound. The Company will not request or require, and Executive agrees not to use, in the course of
Executive’s employment with the Company, any information obtained in Executive’s employment with any previous employer to the extent that such use would violate any contract by which Executive is bound or any decision, law, regulation,
order or decree of any governmental or judicial body. 
 (h) Counterparts. This Agreement may be executed in counterparts, each of
which shall be deemed an original and all of which together shall constitute one and the same instrument. A facsimile of a signature shall be deemed to be and have the effect of an original signature. 
 (i) Headings. The section and other headings contained in this Agreement are for the convenience of the parties only and are not intended to be a
part hereof or to affect the meaning or interpretation hereof. 
 (j) Certain Definitions. 
 “Affiliate”: with respect to any Person, means any other Person that, directly or indirectly through one or more intermediaries,
Controls, is Controlled by, or is under common Control with the first Person, including but not limited to a Subsidiary of the first Person, a Person of which the first Person is a Subsidiary, or another Subsidiary of a Person of which the first
Person is also a Subsidiary. 
 “Control”: with respect to any Person, means the possession, directly or indirectly,
severally or jointly, of the power to direct or cause the direction of the management policies of such Person, whether through the ownership of voting securities, by contract or credit arrangement, as trustee or executor, or otherwise. 

“Person”: any natural person, firm, partnership, limited liability company, association, corporation, company, trust, business trust,
governmental authority or other entity. 
 “Subsidiary”: with respect to any Person, each corporation or other Person in
which the first Person owns or Controls, directly or indirectly, capital stock or other ownership 

  

 8 

 
interests representing 50% or more of the combined voting power of the outstanding voting stock or other ownership interests of such corporation or other
Person. 
 (k) 409A Compliance. The Company shall administer this Agreement in compliance with Code Section 409A, including, to
the extent required, any delayed payment of benefits for six months following a termination of employment. Any such deferred amounts shall be paid as soon as is permissible under Code Section 409A. Prior to the date such amounts are paid to
Executive in accordance with this Section 9(k), interest shall accrue thereon at a reasonable rate of interest as determined by the Board. 
 IN WITNESS WHEREOF, the Company has duly executed this Agreement by its authorized representatives and Executive has hereunto set his hand, in each case effective as of the date first above written. 
  

			
	MEMC ELECTRONIC MATERIALS, INC.
		
	By:	 	 /s/ John Marren

	Name:	 	John Marren
	Title:	 	Chairman of the Board of Directors
	
	EXECUTIVE:
	
	 /s/ Nabeel Gareeb

	Name:	 	Nabeel Gareeb

  

 9 

 Exhibit A 
 Confidentiality Agreement 
  

 10

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