Document:

exv10w1

 

EXHIBIT 10.1

BRUSH ENGINEERED MATERIALS INC.

AMENDED AND RESTATED EXECUTIVE DEFERRED COMPENSATION PLAN II

ARTICLE 1

PURPOSE

     The Brush Engineered Materials Inc. Executive Deferred Compensation Plan II (the “Plan”)
adopted by the Board on December 7, 2004, for years beginning after December 31, 2004, is
maintained for the purpose of providing deferred compensation to eligible employees, which plan is
intended to be a non-qualified deferred compensation arrangement for a select group of management
and highly compensated employees. Effective January 1, 2008, the Plan is amended and restated in
the form of this Amended and Restated Executive Deferred Compensation Plan II to provide as
follows:

ARTICLE 2

DEFINITIONS

     The following terms shall have the following meanings described in this Article unless the
context clearly indicates another meaning. All references in the Plan to specific Articles or
Sections shall refer to Articles or Sections of the Plan unless otherwise stated.

     2.1 Account means the record or records established for each Participant in accordance
with Section 5.1.

     2.2 Annual Excess Compensation means for a Plan Year a Participant’s Base Salary for
services performed during the Plan Year, performance compensation payable in the Plan Year under
the Brush Engineered Materials Inc. and Subsidiaries Management Performance Compensation Plan, and
incentive compensation payable in cash and cash equivalents in the Plan Year under the Brush
Engineered Materials Inc. and Subsidiaries Long-Term Incentive Plan, whether or not such
compensation is reportable on Form W-2 for the Plan Year, but only to the extent that such
compensation exceeds the limit imposed on compensation taken into account under the Brush
Engineered Materials Inc. Savings and Investment Plan by reason of Code Section 401(a)(17) as
determined by the Plan Administrator.

     2.3 Base Salary means for a Plan Year the annual cash compensation relating to
services performed during such Plan Year, whether or not paid in such Plan Year or included on the
Federal Income Tax Form W-2 for such year, excluding bonuses, commissions, overtime, special
awards, tax planning stipends, fringe benefits, stock options, relocation expenses, incentive
payments, non-monetary awards, fees, automobile and other allowances paid to a Participant for
employment services rendered (whether or not such allowances are included in the Employee’s gross
income). Base Salary shall be calculated before reduction for compensation voluntarily deferred or
contributed by the Participant pursuant to all qualified or non-qualified plans of any Employer and
shall be calculated to include amounts not otherwise included in the Participant’s gross income
under Code Sections 125, 402(e)(3), 402(h), or 403(b) pursuant to plans established by any
Employer; provided, however, that all such amounts will be

 

 

included in compensation only to the extent that, had there been no such plan, the amount
would have been payable in cash to the Employee.

     2.4 Board means the Board of Directors of Company.

     2.5 Bonus means for a Plan Year any compensation payable in the form of cash to a
Participant with respect to the Plan Year pursuant to the Brush Engineered Materials Inc. and
Subsidiaries Management Performance Compensation Plan, whether or not paid in a calendar year or
included on the Federal Income Tax Form W-2 for a calendar year.

     2.6 Code means the Internal Revenue Code of 1986, as amended.

     2.7 Company means Brush Engineered Materials Inc., an Ohio corporation.

     2.8 Compensation Committee means the Compensation Committee of the Board or, at any
time that no such committee exists, the Board.

     2.9 Deferred Compensation means the portion of a Participant’s Base Salary or Bonus
allocated to the Participant’s Account in accordance with Section 4.1 of the Plan.

     2.10 Election Agreement means the written agreement entered into by an Employee, which
shall be irrevocable, pursuant to which the Employee becomes a Participant in the Plan and makes an
election relating to Deferred Compensation and the period over which Deferred Compensation and
Nonelective Deferred Compensation and investment return thereon will be paid.

     2.11 Employee means, with respect to each Employer, management and highly compensated
employees.

     2.12 Employer means the Company and any other corporation in a controlled group of
corporations (under Code Section 414(b)) of which Company is a member which, with the authorization
of the Board, adopts the Plan for the benefit of its employees pursuant to resolution of its board
of directors.

     2.13 Nonelective Deferred Compensation means a Participant’s nonelective deferred
compensation allocated to the Participant’s Account in accordance with Section 5.1 of the Plan.

     2.14 Participant means an Employee or former Employee of an Employer who has met the
requirements for participation under Section 3.1 and who is or may become eligible to receive a
benefit from the Plan or whose beneficiary may be eligible to receive a benefit from the Plan.

     2.15 Plan means the plan, the terms and provisions of which are herein set forth, and
as it may be amended or restated from time to time, designated as the “Brush Engineered Materials
Inc. Executive Deferred Compensation Plan II.”

     2.16  Plan Administrator means the Company.

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     2.17 Plan Year means the period beginning on January 1 and ending on December 31 of
each year.

     2.18 Trust means any domestic trust that may be maintained in the United States
pursuant to Article 8.

     2.19 Valuation Date means the last business day of each calendar month.

ARTICLE 3

PARTICIPATION

     3.1 Eligibility. An Employee shall be eligible to participate in the Plan if he or she
is an Employee designated as eligible by the Compensation Committee. Individuals not specifically
designated by the Compensation Committee are not eligible to participate in the Plan.

     3.2 Participation. An Employee shall become a Participant as of the date he or she
satisfies the eligibility requirements of Section 3.1 and completes all administrative forms
required by the Plan Administrator. A Participant’s participation in the Plan shall terminate upon
termination of employment with the Company and all direct and indirect subsidiaries of Company or
upon such other events as determined by the Compensation Committee.

ARTICLE 4

BENEFITS

     4.1 Deferred Compensation. Subject to any limitations established by the Compensation
Committee or the Plan Administrator, a Participant may elect for a Plan Year to have his or her
Base Salary and/or Bonus deferred in any amount not to exceed (i) the Participant’s Base Salary in
excess of the dollar limitation provided for under Code Section 401(a)(17) as determined by the
Plan Administrator, except that this dollar limitation will not be applied with respect to the 2005
Plan Year, and (ii) the Participant’s full Bonus, less applicable tax withholding, and to have that
amount credited to his or her Account as Deferred Compensation. Deferred Compensation shall be
credited to a Participant’s Account monthly.

     4.2 Nonelective Deferred Compensation. There shall be credited to each Participant’s
Account for each Plan Year an amount equal to three (3) percent of his or her Annual Excess
Compensation, or such other percent as may be established from time to time by action of the Board
to maintain parity with the matching contribution rate available under the Brush Engineered
Materials Inc. Savings and Investment Plan. Moreover, the Compensation Committee may in its
discretion determine for any Plan Year to make an additional credit to a Participant’s Account as
Nonelective Deferred Compensation, which amount may be a different amount or percentage (including
no amount) for each Participant, as the Compensation Committee shall in its sole and absolute
discretion determine. Nonelective Deferred Compensation shall be credited to a Participant’s
Account monthly.

     4.3 Election Procedures.

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     (a) Except as provided in paragraphs (b) and (c) below, compensation for services
performed during a taxable year may be deferred at the Participant’s election only if the
election to defer such compensation is made not later than the close of the preceding
taxable year.

     (b) In the case of the first year in which a Participant becomes eligible to
participate in the Plan, the Participant’s election with respect to amounts deferred
pursuant to Sections 4.1 and 4.2 may be made with respect to services to be performed
subsequent to the election within 30 days after the date the Participant becomes eligible to
participate in the Plan.

     (c) In the case of any performance-based compensation based on services performed over
a period of at least 12 months as determined by the Plan Administrator in accordance with
regulatory guidance under Code Section 409A, an election may be made no later than six
months before the end of the period.

     (d) Each Participant shall specify on his or her Election Agreement with respect to
each Plan Year (i) the percentage of Base Salary and/or the percentage of Bonus the
Participant elects to defer for such Plan Year; and (ii) whether the Deferred Compensation
and Nonelective Deferred Compensation for such Plan Year plus investment return credited to
such amounts will be paid in a single lump sum, annual installments payable over three years
or annual installments payable over five years upon the Participant’s termination of
employment with the Company and all direct and indirect subsidiaries of the Company; subject
to the further provisions of Article 6.

     (e) A Participant can change his or her Election Agreement and an eligible Employee who
is not a Participant may become a Participant, as of any January 1 by completing, signing
and filing an Election Agreement with the Plan Administrator not later than the preceding
December 31 (subject, however, to the provisions of paragraph (b) above in the case of a
Participant who becomes newly eligible during the Plan Year). A Participant who does not
complete a new Election Agreement for a Plan Year will be deemed to have elected not to have
any Deferred Compensation for the Plan Year and will be deemed to have elected a single lump
sum method of payment for any Nonelective Deferral Compensation for such Plan Year. In the
event any amount is credited to the Account of Participant with respect to which no timely
election concerning method of payment has been made, such amount shall be payable in the
single lump sum method of payment.

     (f) All Election Agreements shall be in a form acceptable to the Plan Administrator and
shall be completed, signed, and filed with the Plan Administrator as provided herein.

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ARTICLE 5

ACCOUNTS

     5.1 Participant Accounts. The Plan Administrator shall establish a separate Account in
the name of each Participant in respect of each Employer of such Participant for all amounts
attributable to Deferred Compensation for each Plan Year for which the Participant has elected to
defer compensation otherwise payable by such Employer and all Nonelective Deferred Compensation for
each Plan Year. A Participant’s Account shall be maintained by the Plan Administrator in accordance
with the terms of this Plan until all of the Deferred Compensation, Nonelective Deferred
Compensation, and investment return to which a Participant is entitled has been distributed to a
Participant or his or her beneficiary in accordance with the terms of the Plan. A Participant shall
be fully vested in his or her Account at all times.

     5.2 Investment Return. Each Account shall be deemed to bear an investment return as if
invested in the manner elected by the Participant from a list of investment funds from time to time
determined by the Compensation Committee. The Compensation Committee may delegate to the Company’s
Pension Investment Committee the duty and authority to determine the investment funds to be used
for this purpose under the Plan, including the discretion to eliminate, add, or substitute
investment funds from time to time. Deemed investment return under the Plan shall be determined
from the date of crediting of an amount to the Participant’s Account (including deemed income
thereon) through the date of complete distribution of the Account. A Participant shall be
permitted to change his investment election under the Plan for any portion or all of his Account as
of the first business day of any calendar quarter in accordance with such rules and procedures as
the Company shall establish for this purpose. The Company shall have no obligation to actually
invest funds pursuant to a Participant’s elections, and if the Company does invest funds, a
Participant shall have no right to any invested assets other than as a general unsecured creditor
of the Company. During any period in which a Participant has not made an election relating to the
investment of some portion of his Account, such as in the case of an investment fund previously
selected by the Participant ceasing to be available under the Plan, the Pension Investment
committee shall determine the investment fund or funds to be used in determining investment return
for that portion of his Account.

     5.3 Valuation of Accounts. The value of an Account as of any Valuation Date shall
equal the amounts previously credited to such Account less any payments debited to such Account
plus the investment return deemed to be earned on such Account in accordance with Section 5.2
through the Valuation Date.

ARTICLE 6

DISTRIBUTIONS

     6.1 Termination of Employment. Upon termination of employment for any reason other
than death, a Participant’s Account with respect to a Plan Year shall be distributed to the
Participant in a single lump sum payment, annual installments payable over three years or annual
installments payable over five years as elected by the Participant on his or her Election Agreement
with respect to deferrals for the Plan Year. Payment will be made or begin on the business day
coinciding with or next following the sixtieth (60th) day after the Participant’s termination of
employment or as soon thereafter as is administratively practicable; subject, however, to the
provisions of Section 6.3. Installment payments shall be calculated and recalculated annually by
multiplying the balance credited to the Participant’s Account (including any increase or decrease
resulting from investment return) as of the most recent Valuation Date

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by a fraction, the numerator of which is one and the denominator of which is the remaining
number of payments to be made to the Participant.

     6.2 Death. If a Participant dies prior to termination of employment or complete
distribution of his or her Account, the amounts credited to his or her Account will be distributed
in a single lump sum payment to the beneficiary named by the Participant on a beneficiary
designation form filed with the Company. Payment of a death benefit will begin on the business day
coinciding with or next following the sixtieth (60th) day after a Participant’s death or as soon
thereafter as is administratively practicable. The Participant may change the beneficiary
designation at any time by signing and filing a new beneficiary designation form with the Plan
Administrator. If for any reason no beneficiary is designated or no beneficiary survives the
Participant, the beneficiary shall be the Participant’s estate. If the Participant designates a
trust as beneficiary, the Plan Administrator shall determine the rights of the trustee without
responsibility for determining the validity, existence or provisions of the trust. Further, neither
the Plan Administrator nor the Company nor any Employer shall have responsibility for the
application of sums paid to the trustee or for the discharge of the trust.

     6.3 Distribution Limitations. Notwithstanding any provision of the Plan to the
contrary, compensation deferred under the Plan shall not be distributed earlier than

     (a) separation from service as determined by the Secretary of the Treasury (except as
provided below with respect to a key employee of an Employer);

     (b) the date the Participant becomes disabled (within the meaning of
Section 409A(a)(2)(C) of the Code);

     (c) death of the Participant;

     (d) a specified time (or pursuant to a fixed schedule) specified under the Plan at the
date of the deferral of such compensation;

     (e) to the extent provided by the Secretary of the Treasury, a change in the ownership
or effective control of the Company, or in the ownership of a substantial portion of the
assets of the Company; or

     (f) the occurrence of an unforeseeable emergency as defined in
Section 409A(a)(2)(B)(ii) of the Code.

In the case of any key employee (as defined in Section 416(i) of the Code without regard to
paragraph (5) thereof) of an Employer, distributions may not be made before the date which is six
months after the date of separation from service (or, if earlier, the date of death of the
Participant), provided that in the case of any distribution which would be made on an earlier date
but for this restriction, such distribution shall be made as soon as practicable on or after the
first day of the month following the date which is six months after the date of the key employee’s
separation from service.

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ARTICLE 7

ADMINISTRATION

     7.1 Plan Administrator. The Company shall have the sole responsibility for the
administration of the Plan and is designated as Plan Administrator.

     7.2 Appointment of Administrative Committee. The Company may delegate its duties as
Plan Administrator to an Administrative Committee. The members of the Administrative Committee
shall be selected by the Board.

     7.3 Powers of Plan Administrator. The Plan Administrator shall have the full and
exclusive power, discretion and authority to administer the Plan. The determinations and decisions
of the Plan Administrator are final and binding on all persons. The Plan Administrator’s powers
shall include but shall not be limited to, the power to:

     (a) Maintain records pertaining to the Plan.

     (b) Interpret the terms and provisions of the Plan, and to construe ambiguities and
correct omissions.

     (c) Establish procedures by which Participants may apply for benefits under the Plan
and appeal a denial of benefits.

     (d) Determine the rights under the Plan of any Participant applying for or receiving
benefits.

     (e) Administer the claims procedure provided in this Article.

     (f) Perform all acts necessary to meet the reporting and disclosure obligations imposed
by the Employee Retirement Income Security Act of 1974, as amended (“ERISA”).

     (g) Delegate specific responsibilities for the operation and administration of the Plan
to such employees or agents as it deems advisable and necessary.

     In the exercise of its powers, the Plan Administrator shall be entitled to rely upon all
tables, valuations, certificates and reports furnished by any accountant or consultant and upon
opinions given by any legal counsel in each case duly selected by the Plan Administrator.

     7.4 Limitation of Liability. The Plan Administrator and the Company and all other
Employers, and their respective officers and directors (including but not limited to the members of
the Board), shall not be liable for any act or omission relating to their duties under the Plan,
unless such act or omission is attributable to their own willful misconduct or lack of good faith.

     7.5 Claims Procedures.

     (a) All claims under the Plan shall be directed to the attention of the Plan
Administrator. Any Participant or beneficiary whose application for benefits or other

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claim under the Plan has been denied, in whole or in part, shall be given written
notice of the denial by the Plan Administrator within sixty (60) days after the receipt of
the claim. The notice shall explain that the Participant or beneficiary may request a review
of the denial and the procedure for requesting review. The notice shall describe any
additional information necessary to perfect the Participant’s or beneficiary’s claim and
explain why such information is necessary. If a Participant or beneficiary does not receive
a written response to a claim within sixty (60) days after receipt of the claim by the Plan
Administrator, the claim will be deemed to be denied.

     (b) A Participant or beneficiary may make a written request to the Plan Administrator
for a review of any denial of claims under this Plan. The request for review must be in
writing and must be made within sixty (60) days after the mailing date of the notice of
denial or the deemed denial. The request shall refer to the provisions of the Plan on which
it is based and shall set forth the facts relied upon as justifying a reversal or
modification of the determination being appealed.

     (c) A Participant or beneficiary who requests a review of denial of claims in
accordance with this claims procedure may examine pertinent documents and submit pertinent
issues and comments in writing. A Participant or beneficiary may have a duly authorized
representative act on his or her behalf in exercising his or her right to request a review
and any other rights granted by this claims procedure. The Plan Administrator shall provide
a review of the decision denying the claim within sixty (60) days after receiving the
written request for review. If a Participant or beneficiary does not receive a written
response to a request for a review within the foregoing time limit, such request will be
deemed to be denied. A decision by the Plan Administrator for review shall be final and
binding on all persons.

ARTICLE 8

MISCELLANEOUS

     8.1 Unfunded Plan.

     (a) The Plan shall be an unfunded plan maintained by the Company and the other
Employers for the purpose of providing benefits for a select group of management or highly
compensated employees. Neither the Company nor any other Employer shall be required to set
aside, earmark or entrust any fund or money with which to pay their obligations under this
Plan or to invest in any particular investment vehicle and may change investments of Company
assets at any time.

     (b) The Company may establish a Trust to hold property that may be used to pay benefits
under the Plan. The Trust shall be a domestic trust maintained in the United States. The
Trust shall be intended to be a grantor trust, within the meaning of Section 671 of the
Code, of which the Company is the grantor, and the Plan is to be construed in accordance
with that intention. Notwithstanding any other provision of this Plan, the assets of the
Trust will remain the property of the Company and will be subject to the claims of creditors
in the event of bankruptcy or insolvency, as provided in the Trust Agreement. No Participant
or person claiming through a Participant will have any

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priority claim on the assets of the Trust or any security interest or other right
superior to the rights of a general creditor of the Company or the other Employers as
provided in the Trust Agreement.

     (c) Subject to the following provisions of this Section 8(c), all benefits under this
Plan shall be paid by the Participant’s Employer(s) from its general assets and/or the
assets of the Trust, which assets shall, at all times, remain subject to the claims of
creditors as provided in the Trust Agreement. No Employer, other than the Company as
provided below, shall have any obligation to pay benefits hereunder in respect of any
Participants who are not Employees or former Employees of such Employer. The obligation of
each Employer hereunder in respect of any Participant shall be limited to the amounts
payable to such Participant from the Account established for such Participant in respect of
employment with that Employer, except that if an Employer shall fail to make or cause to be
made any benefit payment hereunder when due, the Company shall promptly make such benefit
payment from its general assets and/or the assets of the Trust.

     (d) Neither Participants, their beneficiaries nor their legal representatives shall
have any right, other than the right of an unsecured general creditor, against the Company
or any other Employer in respect of any portion of a Participant’s Account and shall have no
right, title or interest, legal or equitable, in or to any asset of the Company or any other
Employer or the Trust.

     8.2 Spendthrift Provision. The Plan shall not in any manner be liable for or subject
to the debts or liabilities of any Participant or beneficiary. No benefit or interest under the
Plan is subject to assignment, alienation, pledge or encumbrance, whether voluntary or involuntary,
and any purported or attempted assignment, alienation, pledge or encumbrance of benefits shall be
void and will not be recognized by the Company or any other Employer.

     8.3 Employment Rights. The existence of the Plan shall not grant a Participant any
legal or equitable right to continue as an Employee nor affect the right of the Company or any
other Employer to discharge a Participant.

     8.4 Withholding of Taxes. To the extent required by applicable law, the Company or
another Employer will withhold from Compensation and/or Deferred Compensation and any payment
hereunder all taxes required to be withheld for federal, state or local government purposes.

     8.5 Amendment or Termination. Subject to the provisions of Section 8.12, the Company
reserves the right to amend, modify, suspend or terminate the Plan at any time by action of its
Board or of the Compensation Committee of its Board; provided that no prior notice to any
Participant shall be required, and provided, further that no such action may deprive a Participant
of his rights to receive a benefit pursuant to the Plan with respect to compensation deferred prior
to such action.

     8.6 No Fiduciary Relationship Created. Nothing contained in this Plan, and no action
taken pursuant to the provisions of this Plan, shall create or be deemed to create a fiduciary

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relationship between the Company or any other Employer or the Plan Administrator and any
Participant, beneficiary or any other person.

     8.7 Release. Any payment to any Participant or beneficiary in accordance with the
provisions of this Plan shall, to the extent thereof, be in full satisfaction of all claims against
the Plan Administrator, the Company, the other Employers and any of their respective officers,
directors, shareholders, employees or agents.

     8.8 No Warranty or Representation. Neither the Company nor any other
Employer makes any warranty or representation regarding the effect of deferrals made or benefits
paid under this Plan for any purpose.

     8.9 Construction. Words used in the masculine shall apply to the feminine where
applicable; and wherever the context of the Plan dictates, the plural shall be read as the singular
and the singular as the plural.

     8.10 Governing Law. To the extent that Ohio law is not preempted by ERISA, the
provisions of the Plan shall be governed by the laws of the State of Ohio.

     8.11 Counterparts. This Plan may be signed in any one or more counterparts each of
which together shall constitute one instrument.

     8.12 American Jobs Creation Act of 2004. The Plan is intended to provide for the
deferral of compensation in accordance with the provisions of Section 409A of the Code and Treasury
Regulations and published guidance issued pursuant thereto. Accordingly, the Plan shall be
construed in a manner consistent with those provisions and may at any time be amended in the manner
and to the extent determined necessary or desirable by the Company to reflect or otherwise
facilitate compliance with such provisions with respect to amounts deferred on and after January 1,
2005, including as contemplated by Section 885(f) of the American Jobs Creation Act of 2004.
Moreover, to the extent permitted in guidance issued by the Secretary of the Treasury and in
accordance with procedures established by the Committee, a Participant may be permitted to
terminate participation in the Plan or cancel an outstanding deferral election with regard to
amounts deferred after December 31, 2004. Notwithstanding any provision of the Plan to the
contrary, no otherwise permissible election or distribution shall be made or given effect under the
Plan that would result in taxation of any amount under Section 409A of the Code.

     IN WITNESS WHEREOF, Brush Engineered Materials, Inc. has executed this Plan this 5th day of
March, 2008.

	 	 	 	 	 
	 	BRUSH ENGINEERED MATERIALS INC.

 	 
	 	By:  	/s/ Michael C. Hasychak
 	 
	 	 	Name:  	Michael C. Hasychak 	 
	 	 	Title:  	Vice President, Treasurer and Secretary 	 
	 

10exv4w1

 

Exhibit 4.1

31 MARCH 2008

Amendment No. 3

to the Facility Agreement Dated July 27, 2006

By and Between

First Solar Manufacturing GmbH,

Frankfurt (Oder)

as “Borrower”,

First Solar Holdings GmbH,

Mainz

as Joint and Several Debtor, und

First Solar GmbH

Mainz

as Joint and Several Debtor, and

IKB Deutsche Industriebank AG,

Düsseldorf

as “Bank”, “Agent” and “Security Interest Agent”, and

Commerzbank AG Filiale Mainz,

Mainz

as “Bank”, and

Landesbank Rheinland-Pfalz,

Mainz

as “Bank”, and

Landesbank Sachsen Aktiengesellschaft,

Leipzig

as “Bank”

 

 

PREAMBLE

	1.	 	IKB Deutsche Industriebank AG, Düsseldorf, as syndication leader together with the banking
syndicate of First Solar Manufacturing GmbH as Borrower, made available, subject to the joint
and several liability of First Solar Holdings GmbH, Mainz, and First Solar GmbH, Mainz, three
loan facilities up to the total amount of EUR102,044,000.00 to finance a manufacturing site
for the production of solar modules on a cadmium-telluride base with an annual capacity of 100
MWp in Frankfurt/Oder according to the conditions of the Facility Agreement dated July, 27
2006 including Amendment No. 1 dated September 12, 2006 and Amendment No. 2 dated March 15,
2007 (“Facility Agreement”).
	 
	2.	 	This Amendment changes several conditions of the Facility Agreement.

WHEREFOR, the Parties agree to the following Amendment:

	1.	 	DEFINITIONS
	 
	 	 	The terms used in this Amendment have the meaning attributed to them in the Facility
Agreement, in so far as there is no modification thereof in this Amendment.
	 
	2.	 	CHANGES TO THE FACILITY AGREEMENT
	 
	2.1	 	Changes. The “Facility Agreement” is changed herewith. The amended version is attached in
Annex 1. 
	 
	2.2	 	Effective Date. The amended version of the “Facility Agreement” is effective retroactively as
of 31.12.2007 following the signing of this Amendment by all Parties to the Agreement.
	 
	2.3	 	Continuity in Other Respects. Except for the changes to the “Facility Agreement” accepted in
this Amendment, the Agreement shall remain in full force and effect.
	 
	3.	 	DOCUMENTS
	 
	 	 	The “Borrower” shall ensure that, no later than four (4) weeks after the date of this
Amendment, the documents listed in Annex 2 shall be submitted to the “Banks”,
whereby the content of said documents shall be in a form and manner satisfactory to the
“Banks”.
	 
	4.	 	GENERAL CONDITIONS
	 
	4.1	 	Partial Effect. Should individual conditions of this Amendment be deemed entirely or
partially invalid or should a gap be found in this modification agreement, then the

 

 

	 	 	validity of the other conditions shall not be affected. In lieu of the ineffective
conditions or in order to fill the gap, an appropriate provision should be agreed to that,
insofar as legally possible, comes closest to what the Parties would have desired or would
have agreed to according to the meaning and purpose of the Amendment, had they considered
the matter.
	 
	4.2	 	Applicable Law. This Amendment is subject to the laws of the Federal Republic of Germany.
	 
	4.3	 	Venue. Exclusive venue for any disputes arising out of or relating to this Amendment shall be
Düsseldorf.
	 
	4.4	 	Requirement of Writing. Changes and Modifications to this Amendment must be in writing. This
requirement of a writing also applies to this No. 4.4.

 

 

SIGNATURES

	 	 	 	 	 
	 	 	 
	31 March 2008 	
/s/ Karl-Heinz Harz
 	 
	 	First Solar Manufacturing GmbH 	 
	 	 	 
	 
	 	 	 
	31 March 2008 	/s/ Karl-Heinz Harz
 	 
	 	First Solar GmbH 	 
	 	 	 
	 
	 	 	 
	31 March 2008 	/s/ Karl-Heinz Harz
 	 
	 	First Solar Holdings GmH 	 
	 	 	 
	 
	 	 	 
	31 March 2008 	/s/ Roman Boguhn     /s/ Lothar Brosig
 	 
	 	Commerzbank AG Filiale Mainz 	 
	 	 	 
	 
	 	 	 
	31 March 2008 	/s/ Anja Lange     /s/ Thomas Richter
 	 
	 	IKB Deutsche Industriebank AG 	 
	 	 	 
	 
	 	 	 
	31 March 2008 	/s/ Antje Gruber     /s/ Christine Schettgen
 	 
	 	Landesbank Rheinland-Pfalz 	 
	 	 	 
	 
	 	 	 
	31 March 2008 	/s/ Beate Schneider     /s/ Doreen Will
 	 
	 	Landesbank Sachsen  	 
	 	Aktiengesellschaft 	 

 

 

	 	 	 	 	 

Annex 1

Amended Facility Agreement Annex 1

between

First Solar Manufacturing GmbH,

Frankfurt (Oder)

as “Borrower”

subject to the joint and several liability of

First Solar Holdings GmbH,

Mainz

and

First Solar GmbH

Mainz

and

IKB Deutsche Industriebank AG,

Düsseldorf

as “Bank”, “Agent” and “Security Agent” and

Commerzbank AG Mainz Branch

Mainz

as “Bank” and

Landesbank Rheinland-Pfalz

Mainz

as “Bank” and

Landesbank Sachsen Aktiengesellschaft

Leipzig

as “Bank”

 

 

Preamble

First Solar Inc., Phoenix, Arizona intends to construct and operate a production plant in
Frankfurt/Oder for the production of solar modules on the basis of cadmium-telluride having a
capacity of 100 MWp (hereinafter referred to as the “Project”) through First Solar Manufacturing
GmbH, Frankfurt (Oder): the shares in First Solar Manufacturing GmbH, Frankfurt (Oder) are held by
First Solar Inc., Phoenix, Arizona through First Solar Holdings GmbH, Mainz .

M+W Zander FE GmbH was retained as the general contractor for the construction of the buildings as
well as the infrastructure. Various suppliers will deliver and install the components for the
production lines pursuant to separate agreements.

The distribution of the solar modules is supposed to take place through First Solar GmbH, Mainz, a
100% subsidiary of First Solar Inc., Phoenix, Arizona on the basis of a distributor contract.

The projected total costs for the “Project” are EUR 117.7 million.

The debt capital will be provided to the First Solar Manufacturing GmbH, Frankfurt (Oder) by a
syndicate of banks under the lead arrangement of IKB Deutsche Industriebank AG pursuant to the
following terms and conditions.

The Federal Republic of Germany and the State of Brandenburg will secure 80% of the claims of the
banks in connection with the following described term loan and working capital loan by creating
deficiency guarantees (Ausfallbürgschaften) for the benefit of the banks.

The subsidies contemplated for the Project were applied for in December 2005/January 2006 and
approved by the European Commission on 26 April 2006.

Now, therefore, on the basis of the instructions on the application for the Federal guarantees
including parallel state guarantees, the Parties agree as follows:

 

 

1. Definitions

	1.1.	 	The following definitions apply to this Facility Agreement:
	 
	 	 	“Agreed Replacement and Expansion Investments” are the investments for placement in
expansion made by the “Borrower” up to the maximum amount foreseen in the “Business Plan”
for the respective business year, whereby the maximum amount is increased by the amounts
which were foreseen but not used for replacement and expansion investments in the
“Business Plan” for the respective previous business years;
	 
	 	 	“Supply Agreements” mean the following contracts:;

	 	(a)	 	all supply agreements between the “Borrower” and the “FS GmbH”;
	 
	 	(b)	 	all supply agreements and other agreements on the delivery and services
related to solar modules between the “Borrower” and third-party customers of solar
modules; and
	 
	 	(c)	 	all supply agreements and other agreements on the delivery and services
related to solar modules between “FS GmbH” and third-party customers of solar
modules;

	 	 	“End of the Construction Phase” means the point in time in which the “Borrower” achieves
a nominal capacity with their production facility in the amount of 100 megawatts;
	 
	 	 	“Agent” means IKB Deutsche Industriebank Aktiengesellschaft, Düsseldorf;
	 
	 	 	“Old Bank” means a “Bank” which transfers its rights and obligations under the “Contract
Documents” completely or partially pursuant to Clause 27 (Assignments and Transfers) of
this Facility Agreement to a “New Bank”.
	 
	 	 	“Deficiency Guarantees” means the deficiency guarantees from the Federal Republic of
Germany (for 48 % of the total amount of the “Term Loan” and initially 48 % of the
“Revolver”) and the State of Brandenburg (for 32 % of the total amount of the “Term Loan”
and initially 32 % of the “Revolver”) in an amount totaling 80 % of the amount of the
“Term Loan” and the “Revolver” which, as is apparent from Annex 6a (“Decision on the
approval of the deficiency guarantees plus supplements”), are issued for the benefit of
the “Banks” with regard to the Facility Agreement, including the “General Terms and
Conditions for the Assumption of Guarantees by the Federal Republic of Germany (the Bund)
and Federal States issuing Parallel Guarantees” in the form apparent from Annex 6b;
	 
	 	 	“Banking Day” means a day on which the credit institutions in Düsseldorf and Frankfurt am
Main are open for general business and which is a “TARGET Day”;

 

 

	 	 	“Banks” means IKB Deutsche Industriebank AG, Düsseldorf, as well as any third parties
joining this Facility Agreement pursuant to Clause 27 as lenders;
	 
	 	 	“Majority of Banks” means the “Banks”, whose “QuotasQuotas” in each case of a made
decision account for at least 66 2/3% of all “QuotasQuotas”;
	 
	 	 	“Base Interest Rate” means the base interest rate as defined in § 247 German Civil Code
(Bürgerliches Gesetzbuch, BGB);
	 
	 	 	“Bridge Loan” means the bridge loan in the amount of EUR 22,000,000 pursuant to Clause
2.1;
	 
	 	 	“Guarantors” means the Federal Republic of Germany and the State of Brandenburg;
	 
	 	 	“Guarantee Amount”: means the amount as defined for the respective calendar year in
clause 24.6;
	 
	 	 	“Business Plan” means the business plan of the “Borrower” contained in Annex 28 (Business
Plan) to this Facility Agreement;
	 
	 	 	“Cash Flow available for Debt Service” is defined in Annex 15 (Definition of Key
Financial Figures);
	 
	 	 	“Cash Flow Waterfall” means the following sequence of application of the “Cash from
Operations”:

	 	(1)	 	due tax payments of the “Borrower”;
	 
	 	(2)	 	interest payments and compensation for the “Loans”
	 
	 	(3)	 	interest payments and compensation for all other bank financing
of the “Borrower”;
	 
	 	(4)	 	repayment of principal on the “Loans”;
	 
	 	(5)	 	repayment of all other bank financing of the “Borrower”;
	 
	 	(6)	 	leasing expenses of the “Borrower” and
	 
	 	(7)	 	“Agreed Replacement and Expansion Investments”;

	 	 	“Cash Flow from Operations” is defined in Annex 15 (Definitions of Key Financial
Figures);
	 
	 	 	“Threatening Event of Default” means any circumstance or event, which would with the
expiry of a grace period or giving of notice constitute an event of default;
	 
	 	 	“EBITDA” is defined in Annex 15 (Definitions of Key Financial Figures) to this Facility
Agreement;

 

 

	 	 	“Equity” is defined in Annex 15 (Definitions of Key Financial Figures) to this Facility
Agreement;
	 
	 	 	“Equity Ratio” is defined in Annex 15 (Definitions of Key Financial Figures) to this
Facility Agreement;
	 
	 	 	“EPC Contractors” are M+W Zander FE GmbH as well as all suppliers who have concluded an
equipment supply agreement with the “Borrower” relating to the “Project”;
	 
	 	 	“EPC Agreements” are the General Contractor Agreement concluded between M+W Zander FE
GmbH and the Borrower on 13 December 2005 and 5 January 2006, the two contracts on the
delivery of technical installations concluded between VON ARDENNE Anlagentechnik GmbH and
the “Borrower”/“FS LLC” on 31 March 2006, the contract on the delivery of technical
installations concluded between Cincinnati Machine LLC and the “Borrower” on 16 February
2006 and the contract on the delivery of technical installations concluded between NPC
Corporation and the “Borrower” on 15 February 2006;
	 
	 	 	“Permitted Financial Liabilities” are Financial Liabilities

	 
	 	(a)	 	from or in connection with this Facility Agreement granted partner loans/loans by
“Sponsors” pursuant to the provisions of the “Sponsor Contracts”,
	 
	 	(b)	 	entered into with the approval of the “majority of the banks” and the “Guarantors”:
	 
	 	 	 	“Permitted Material and Capital Investments” are
	 
	 	(a)	 	“Agreed Replacement and Expansion investments”
	 
	 	(b)	 	third party funded “Material and Capital Investments” (even if reporting of same in
the balance sheet is not required) provided that the payment and repayment entitlements
of said third parties are insolvency firm and subordinate to the entitlements of the
“Agent” and of the “Banks” under this Facility Agreement and
	 
	 	(c)	 	“Material and Capital Investments” made with the approval of the “majority of the
banks” and the “Guarantors”

	 
	 	 	“EU Decision” means the decision of the EU Commission dated 26 April 2006 on the
“Deficiency Guarantees” and the “Investment Subsidies and Supports”;
	 
	 	 	“EURIBOR” means the interest rate published by Reuters on its screen service on page
EURIBOR 01 at or around 11:00 a.m. local time in Brussels on the “Interest Fixing Date”
for a period of time corresponding to the Interest Period following the “Interest Fixing
Date” or, if a fixing of interest is not possible in this manner, the interest rate
determined by the “Agent” on the basis of the quotations from the “Reference Banks” for
loans with a

 

 

	 	 	duration corresponding to the respective Interest Period on the relevant “Interest Fixing
Date” pursuant to Clause 7.7;
	 
	 	 	“Fee Letter” means the fee letter concluded between the “Borrower”, “FS GmbH”, “FS” and
the “Agent” before this Facility Agreement is concluded;
	 
	 	 	“Financial Liabilities” are all liabilities from or in connection with

	 	(a)	 	Monies made available by way of loans taken out or within the scope of repayable
subsidiary funds
	 
	 	(b)	 	an acceptance draft bank discount or guaranteed loan,
	 
	 	(c)	 	a promissory note, a debenture or a certified security of any other kind, including a
bond,
	 
	 	(d)	 	leasing and lease purchase agreements and third party funded “Material and Capital
Investments” (even if same do not have to be reported in the balance sheet),
	 
	 	(e)	 	sold or discounted receivables (including factoring, unless the buyer assumes the
full risk of default),
	 
	 	(f)	 	derivate transactions with the exception of hedging agreements and the “Interest
Securing Contract”,
	 
	 	(g)	 	Liabilities, guarantees, co-signature agreements and other potential liabilities for
third party financial liabilities,
	 
	 	(h)	 	received deposits or granted deferrals to pertinent legal entities if same is done
primarily for financing purposes and
	 
	 	(i)	 	potential recourse liabilities for guarantees and co-signature agreements issued by
third parties.

	 	 	“Freely Disposable Net Assets” means the assets of a company (as described in Section 266
clause 2, A, B and C German Commercial Code (HGB)), minus (a) the liabilities (as
described in Section 266 clause 3, B, C and D German Commercial Code (HGB)) and (b) the
share capital of the company, whereby the following adjustments of the balance sheet
items shall be made:

	 	(i)	 	the amount of any share capital increase made by the
respective company contrary to the obligations under the “Contract Documents”
shall be deducted from the share capital;
	 
	 	(ii)	 	loans or other liabilities assumed by the respective
company contrary to the obligations under the “Contract Documents” are to
disregarded; and
	 
	 	(iii)	 	assets whose book value is substantially lower than the
market value in the balance sheet shall be accounted for at their fair

 

 

	 	 	 	market value, provided that they are not necessary for the business
operation and a sale of those assets makes economic sense.

	 	 	“FS” means First Solar Inc., Phoenix, Arizona;
	 
	 	 	“FS GmbH” means First Solar GmbH, Mainz;
	 
	 	 	“FS Group” means “FS” and its “Subsidiaries”;
	 
	 	 	“FS Holdings” means First Solar Holdings GmbH, Mainz, a 100% subsidiary of “FS”;
	 
	 	 	“FS LLC” means First Solar US Manufacturing LLC., Perrysburg, Ohio, a former 100%
subsidiary of “FS”; which was merged with FS as the acquiring company as of 03/31/2007;
	 
	 	 	“Shareholders” means “FS” and “FS Holdings”;
	 
	 	 	“Permits” means all public law permits, consents, licenses, authorizations and approvals
required for the construction and operation of the “Project”, listed in Annex 12 (Permits
for the Construction and Operation of the Project) except for the “Subsidy Order”, the
“Deficiency Guarantee” and the “EU Decision”;
	 
	 	 	“Total Liabilities” is defined in Annex 15 (Definitions of Key Financial Figures) to this
Facility Agreement;
	 
	 	 	“Investment Account” means the account No. 2011112 01 at the Commerzbank AG, Mainz
(Routing Code 550 400 22) to be established by the “Borrower” pursuant to Clause 13.2;
	 
	 	 	“Investment Subsidies” means the investment subsidies in the amount of EUR 23,756,000 to
be provided by the Federal Republic of Germany for the “Project” in accordance with the
Investment Subsidy Act (Investitionszulagengesetz) 2005;
	 
	 	 	“Investment Subsidies and Supports” means the investment subsidy granted and to be
granted under the “Subsidy Order” in the amount of EUR 21,531,000 and the investment
support provided and to be provided for the “Project” by the Federal Republic of Germany
in accordance with the Investment Subsidy Act (Investitionszulagengesetz) 2005 in the
amount of EUR 23,756,000;
	 
	 	 	“IP License Agreement”: is the contract to be concluded between the “Borrower” and “FS”
regarding the rights of use for all licenses, patents and other industrial property
rights, which are necessary for the “Project”;
	 
	 	 	“Loans” means the “Term Loan”, the “Bridge Loan” and the “Revolver”;
	 
	 	 	“Borrower”: is the First Solar Manufacturing GmbH, Mainz;

 

 

	 	 	“Market Disruption Notice” means the notice by the “Agent” about an event within the
meaning of Clause 8 (Market Disruption);
	 
	 	 	“Maximum Distribution Margin”: is the maximum uniform distribution margin of 2%, which is
contained in the sale prices of the products sold by “FS GmbH” to end users from US and
German production;
	 
	 	 	“Maximum Commission Entitlement”: is the maximum commission entitlement of 2%, pertaining
to “FS GmbH” from the “Borrower” from the sale for its account;
	 
	 	 	“Excess Amount” is defined in Clause 23.1;
	 
	 	 	“CET” means central European time, and — when applicable — central European daylight
savings time;
	 
	 	 	“New Bank” means a bank which completely or partially assumes the rights and obligations
of an “Old Bank” under the Contract Documents pursuant to Clause 27 (Assignments and
Transfers);
	 
	 	 	“Project” is defined in the Preamble;
	 
	 	 	“Project Progress Report” means the report to be prepared by the “Project Appraiser”
pursuant to Clause 17.8 with regard to the progress of the “Project”, which especially
contains a comparison of the costs already incurred for the “Project” at the time of such
report to the costs for the “Project” foreseen in the “Business Plan” and the
confirmation that the “Project” has made the progress corresponding to the investments as
of the respective time, the “Project” has no delays compared to the “Schedule” and that
all “Permits” required as of that time have been granted;
	 
	 	 	“Project Appraiser” means the technical expert appointed by the “Agent” which at the time
of conclusion of this Facility Agreement is the firm Lahmeyer International GmbH, Bad
Vilbel;
	 
	 	 	“Project Account” is the project account no. 2011112 00 at the Commerzbank AG, Mainz
(Routing Code 550 400 22) to be established by the “Borrower” pursuant to Clause 13.1 of
this Facility Agreement;
	 
	 	 	“Project Account FS GmbH” is the account to be set up by “FS GmbH” pursuant to the draft
“Security Contract” attached herewith as Annex 18a (Contract on the Pledging of an
Account) under account no. 2009330 00 with Commerzbank AG, Mainz (Routing Code 550 400
22);
	 
	 	 	“Project Contracts” means the contracts listed in Annex 5 (Project Contracts) to this
Facility Agreement;
	 
	 	 	“PwC” means PricewaterhouseCoopers Aktiengesellschaft Wirtschaftsprüfungsgesellschaft,
Lise-Meitner-Str. 1, 10589 Berlin having the mandate to act for the “Guarantors” in case
of such guarantees;

 

 

	 	 	“Quota” means the portion attributed to each “Bank” of the obligation to provide the Loan
or the amount, which is provided. The Quotas as of the signing of this Facility Agreement
are set forth in Annex 1 (Quotas);
	 
	 	 	“Reference Banks” means the Deutsche Bank AG, the Commerzbank AG and the Dresdner Bank
AG;
	 
	 	 	“Reference Interest Rate” means “EURIBOR”;
	 
	 	 	“Revolver” means the loan for working capital facility in the amount of EUR 27,000,000
pursuant to Clause 2.1 of this Facility Agreement;
	 
	 	 	“Fixed Assets and Capital Investments”: are additions to fixed assets, which have to be
reported in the balance sheet or its appendix pursuant to the accounting principles
applicable to the “Borrower”; in particular additions from or in connection with:

	 	(a)	 	concessions, commercial licensing rights and similar rights and values as well as
licenses to such rights and values;
	 
	 	(b)	 	goodwill;
	 
	 	(c)	 	land parcels, rights equivalent to land rights and buildings, including buildings
erected on third party owned land parcels;
	 
	 	(d)	 	technical equipment and machines, other equipment, production and business equipment;
	 
	 	(e)	 	stakes in and loans to affiliated companies;
	 
	 	(f)	 	investments;
	 
	 	(g)	 	loans to companies of which the Company is a stakeholder;
	 
	 	(h)	 	fixed asset securities and other loans;

	 	 	“Debt Service Coverage Level” is defined in Annex 15 (Definitions of Key Financial
Figures);
	 
	 	 	“Debt Service Reserve” means an amount of EUR 3,000,000;
	 
	 	 	“Debt Service Reserve Investment Account” is the account to be set up by the
“Borrower” pursuant to Clause 13.4 under account no. 2011112 12 with Commerzbank AG,
Mainz (Routing Code 550 400 22);
	 
	 	 	“Debt Service Reserve Account” is the account no. 2011112 04 at the Commerzbank AG, Mainz
(Routing Code 550 400 22) to be established in accordance with Clause 13.4 by the
“Borrower” and also refers to the “Debt Service Reserve Investment Account”;

 

 

	 	 	“Service and Supply Contract 5N” is the German Supply and Service Agreement between the
“Borrower”, “FS” and 5N PV Gesellschaft fuer photovoltaische Produkte mbH and 5N Plus
Inc. dated 3/30/2007;
	 
	 	 	“Security” means the security interests and other forms of security listed in Annex 13
(Security) as well as all future security agreed between the “Banks” and the “Borrowers”;
	 
	 	 	“Security Agent” means IKB Deutsche Industriebank AG;
	 
	 	 	“Security Agreements” means all declarations to be issued and all contracts to be
concluded in connection with the “Security”;
	 
	 	 	“Sponsors” means the “Shareholders”;
	 
	 	 	“Sponsors’ Agreements” means the “Sponsor’s Agreement FS Holdings”, the “Sponsor’s
Agreement USA I” and the “Sponsor’s Agreement USA II”;
	 
	 	 	“Term Loan” means the term loan in the amount of EUR 53,044,000 pursuant to Clause 2.1;
	 
	 	 	“TARGET” means the Trans-European Automated Real-time Gross Settlement Express Transfer
payment system;
	 
	 	 	“TARGET Day” is every day on which “TARGET” is open for the processing of payments;
	 
	 	 	“Subsidiary” is any company which is directly or indirectly controlled by a person or
with regard to which a person directly or indirectly holds more than 50 % of the voting
rights or comparable rights, and “to control” for this purpose means the authority to
instruct the management and to determine the guidelines for business policy or, in the
case of a German stock company, to determine the members of the supervisory board
appointed by the shareholders, be it as the holder of voting rights or on the basis of a
contract or otherwise;
	 
	 	 	“Surplus Cash Flow” is defined in Annex 15 (Financial Figures) to this Facility
Agreement;
	 
	 	 	“Transfer” means the transfer of rights and obligations under this Facility Agreement
pursuant to Clause 27.3;
	 
	 	 	“Affiliated Enterprises” means enterprises in which “FS” has a direct or indirect
participation;
	 
	 	 	“Royalty Payments” means any payments made by the “Borrower” pursuant to Clause 19.1.35.
	 
	 	 	“Sponsor’s Agreement FS Holdings” means the Agreement between “FS Holdings”, the “Agent”,
the “Borrower”, and “FS GmbH” pursuant to Annex 9a (Sponsor’s Agreement FS Holdings);

 

 

	 	 	“Sponsor’s Agreement USA I” means the Agreement between “FS”, “FS Holdings”, the
“Borrower”, and the “Agent” pursuant to Annex 9b (Sponsor’s Agreement USA);
	 
	 	 	“Sponsor’s Agreement USA II” means the Agreement between “FS”, the “Borrower”, and the
“Agent” pursuant to Annex 9c (Sponsor’s Agreement USA pertaining to the Recourse
Finanancing Insurance);
	 
	 	 	“Debt Level” is defined in Annex 15 (Financial Figures) to this Facility Agreement;
	 
	 	 	“Insurance Policies” means the insurance policies listed in Annex 11 (Insurance
Policies);
	 
	 	 	“Insurance Consultant” is Marsh GmbH, Frankfurt am Main, appointed by the “Agent”;
	 
	 	 	“Insurance Account” is the account no. 2011112 03 at the Commerzbank AG, Mainz (Routing
Code 550 400 22) to be established in accordance with Clause 13.4 by the “Borrower”;
	 
	 	 	“Contract Documents” means this Facility Agreement, the “Fee Letter” and the “Security
Agreements”; each including all respective supplements, modifications and additions made
between the respective parties to the Facility Agreement and the Security Contracts at
this time and to be made between them in the future to the extent only that same are
expressly defined as such by the “Agent” and the “Borrower”;
	 
	 	 	“Material Adverse Change” is the occurrence of an event which has a material adverse
influence on the business operations, the financial situation or the commercial
relationships of the “Borrower”, “FS GmbH”, “FS Holdings”, or “FS” and which results in
the “Borrower”, “FS GmbH”, “FS Holdings”, no longer being able to comply with its
financial or other obligations under the “Contract Documents” or which endangers or
precludes their performance;
	 
	 	 	“Accountants” means the accounting firm PwC Deutsche Revision Aktiengesellschaft
Wirtschaftsprüfungsgesellschaft retained by the “Borrower” or another accountant
appointed by the “Borrower” which is satisfactory to the “Agent”;
	 
	 	 	“Schedule” means the schedule relating to the “Project” under Annex 8 (Schedule) which is
provided by the “Borrower” and confirmed by the “Project Appraiser”, as amended from time
to time with the consent of the “Project Appraiser” and the “Agent” in the actual form;
	 
	 	 	“Drawdown” means a drawdown of a payout under one of the “Loans”;
	 
	 	 	“Drawdown Request” means a request for a “Drawdown” under this Agreement pursuant to
Annex 3 (Drawdown Request);
	 
	 	 	“Drawdown Period” means with regard to

 

 

	 	(a)	 	the “Term Loan” and the “Bridge Loan”, the period from signing this Facility
Agreement until 12/31/2007,
	 
	 	(b)	 	the “Revolver”, the period from signing this Facility Agreement until
09/30/2012 ;

	 	 	“Drawdown Date” is a date on which a payout is supposed to be made under one of the
“Loans”;
	 
	 	 	“Interest Determination Notice” is the written notice of the “Borrower” about the
duration of an “Interest Period”.
	 
	 	 	“Interest Determination Date” is the second “Banking Day” prior to the beginning of each
“Iinterest Period”;
	 
	 	 	“Interest Hedging Agreement” is the framework contract for finance future transactions,
to be concluded by the “Borrower” with the IKB Financial Products Société Anonyme,
Luxemburg wherein the risk of change in interest rate is secured including all assets and
all individual accounts hereunder for at least 75 % of the outstanding under the “Term
Loan” up to its duration under consideration of redemption terms based o the “Business
Plan”.
	 
	 	 	“Subsidy Order” is the order from the Investitionsbank of the State of Brandenburg dated
about the “Investment Subsidies and Supports”, as well as all related orders on supports
and subsidies for the benefit of the “Borrower” which are still to be issued.
	 
	1.2	 	The use of quotation marks for certain terms and their derivatives serve as a reference to
the definitions in Clause 1.1 of this Facility Agreement. If the same term is used without
quotations marks, the general meaning resulting from the context applies.
	 
	 	 	The singular form of a word includes the plural, and the plural form includes the
singular.
	 
	2.	 	Loans

	 	 	The “Banks” grant the “Borrower” in accordance with their respective “Quotas”:
	 
	2.1	 	a term loan in the amount of EUR 53,044,000 (the “Term Loan”), a bridge loan in the amount of
EUR 22,000,000 (the “Bridge Loan”), and a working capital loan in the amount of EUR 27,000,000
(the “Revolver”).
	 
	2.2	 	The payout amount of the “Loans” is 100% respectively.
	 
	2.3.	 	“FS GmbH” and “FS Holding” are jointly and severally liable with the “Borrower” for all
obligations of the “Borrower” under this Facility Agreement.

 

 

	2.4	 	The liability of “FS GmbH” for liabilities of the “Borrower” under the “Contract Documents”
and the right to foreclose the “Security” provided by “FS GmbH” shall be limited to the
respective amount of the “Freely Disposable Net Assets” existing at the time of such payment
or enforcement.
	 
	 	 	The restriction of the liability in the aforementioned Paragraph 1 shall only apply if “FS
GmbH” objects to the recourse or the foreclosure of a “Security” on the grounds of the
restricted liability within 15 “Banking Days” after the “Agent” has announced the recourse
or the foreclosure and within 3 “Banking Days” after the successful appeal, the amount of
the “Freely Disposable Net Assets” shall be determined by an independent auditor with the
consent of the “Agent”.
	 
	3.	 	Purpose of the Loans
	 
	3.1	 	The “Term Loan” is exclusively designed for the partial financing of the fixed assets for the
“Project” in accordance with the description in the overview “Source of Funds / Use of Funds”
in Annex 2 (Source of Funds / Use of Funds).
	 
	3.2	 	The “Bridge Loan” serves to pre-finance the “Investment Supports”.
	 
	3.3	 	The “Revolver” serves the financing of the necessary operating funds for the “Project”.
	 
	4.	 	Quotas of the Banks
	 
	4.1	 	Each “Bank” undertakes to participate in each “Drawdown” under the “Loans” pursuant to this
Facility Agreement in an amount corresponding to its respective “Quota” on the respective
“Drawdown Date” and to place the amount allocated to it at the disposition of the “Agent”.
	 
	4.2	 	Each “Bank” is liable to the “Borrower” only with its “Quota” for compliance of the totality
of the obligations imposed on the “Banks” under this Facility Agreement. Joint liability is
excluded.
	 
	4.3	 	To the extent that a “Bank” does not fulfill its obligations under this Facility Agreement,
this does not relieve the other parties from the performance of their obligations under this
Facility Agreement.
	 
	4.4	 	The “Banks” are individual creditors and not joint creditors under this Facility Agreement.
	 
	4.5	 	Except in the case of a corresponding order by the “Majority of Banks” or unless expressly
regulated in this Agreement, the rights of the “Banks” will exclusively be exercised by the
“Agent” as the representative of the “Banks”.
	 
	5.	 	Drawdowns
	 
	5.1	 	The “Borrower” can request a Drawdown under one of the “Loans” within the respective
“Drawdown Period” with a “Drawdown Request” in the form set forth in Annex 3 (Drawdown
Request). The correctly filled out 

 

 

	 	 	“Drawdown Request” must be received by the “Agent” not
later than 10:00 am “CET” five “Banking Days” prior to the “Drawdown Date” as set forth in the
drawdown request.

	5.2	 	The “Borrower” is only authorized to submit “Drawdown Requests” if the preconditions for
Drawdown set forth in Annex 4a (“General Preconditions for Payout”) and in Annex 4b (“Special
Preconditions for Drawdown”) have each been fulfilled to the satisfaction of the “Agent”.
	 
	5.3	 	“Drawdowns” under the “Term Loan” are only permitted if in addition to the preconditions set
forth in Annex 4a (“General Preconditions for Drawdown”) and in Annex 4b (“Special
Preconditions for each Drawdown”):

	 	(a)	 	Copies of invoices are presented which show progress in the project going
beyond the total amount of EUR 22,000,000. The invoices are to be certified by the
countersignature of an authorized person employed by the “Borrower”; and
	 
	 	(b)	 	The respective last “Project Progress Report” to be provided under Clause
17.8 has been issued to the satisfaction of the “Agent”.

	 	 	“Drawdowns” will be made in a maximum amount of 56.72 % of the respective net invoice
amount, which is in excess of EUR 22,000,000.
	 
	 	 	“Drawdowns” under the “Term Loan” are made in amounts of at least EUR 3,000,000 except for
the last “Drawdown”.
	 
	 	 	There will be a maximum of twelve “Drawdowns”.
	 
	5.4	 	“Drawdowns” under the “Bridge Loan” are only permissible if in addition to the preconditions
set forth in Annex 4a (“General Preconditions for Drawdown”) and in Annex 4b (“Special
Preconditions for each Drawdown”):

	 	(a)	 	The “Agent” has copies of the invoices for supplies and services for which
applications for the “Investment Supports” have been submitted; and
	 
	 	(b)	 	The respective last “Project Progress Report” to be provided under Clause
17.8 has been issued to the satisfaction of the “Agent”.

	 	 	“Drawdowns” are made in the amount of a maximum of 20.5% of the respective net invoice
amount.
	 
	5.5	 	A maximum of two “Drawdowns” per calendar month will be made in the amount of at least EUR
500,000.
	 
	5.6	 	Unless agreed otherwise, all payouts are made to the “Project Account FSM”.
	 
	5.7	 	As soon as all preconditions for the respective Drawdown under one of the Loans exist to the
satisfaction of the “Agent”, the “Agent” will confirm this 

 

 

	 	 	to the “Banks”. Each “Bank” must
then provide to the “Agent” the amount allocable to it to be paid out on the respective
“Drawdown Date” by no later than 11:00 a.m. CET.

	6.	 	Termination and Loss of the Loan
	 
	6.1	 	The “Borrower” is entitled to terminate the “Loans” to the extent these “Loans” have not been
used in “Drawdowns” in amounts of EUR 2,000,000 by advance written notice of five “Banking
Days” if the “Borrower” has demonstrated to the satisfaction of the “Agent” that the total
financing of the “Project” is not endangered by the termination.
	 
	6.2	 	In the case of termination of the “Term Loan”, the last due scheduled repayment installments
shall be pro-rated, taking the terminated amount into account .
	 
	 	 	The “Bridge Loan” and the “Revolver” are reduced upon termination by the respective
terminated amount.
	 
	6.3	 	The amounts of the “Loans” not used by expiration of the respective “Drawdown Periods” lapse
at that time. Figure 6.2 applies accordingly.
	 
	7.	 	Interest
	 
	7.1	 	The interest rate for the respective interest period is calculated for each “Drawdown” as a
sum of the “Reference Interest Rate” and the respective margin applicable under Clause 7.6.
The “Agent” shall notify the “Borrower” and the “Banks” of the interest rate for the pertinent
interest period and its term two bank business days prior to the beginning of an interest
period.
	 
	7.2	 	The interest periods for the “Term Loan” and the “Bridge Loan” are, at the election of
“Borrower” three or six months and for the “Revolver”, one, three or six months. The election
for the first interest period for a “Drawdown” under a “Loan” is made in the “Drawdown
Request”. The “Borrower” will inform the Agent about the duration of the interest period the
“Borrower” desires for the subsequent interest periods of the relevant “Drawdown” by no later
than 11:00 a.m. CET five “Banking Days” prior to the “Interest Determination Date” by using
the form set forth in Annex 14 (Interest Determination Notice).
	 
	 	 	If the “Borrower” does not make an election in the “Drawdown Request” or by the scheduled
date five “Banking Days” prior to the “Interest Determination Date”, the interest period
has the duration of three months.
	 
	7.3	 	The first interest period of a “Drawdown” under a “Loan” begins with the “Drawdown Date” and
ends upon expiration of one, three or six months,
depending on the elected duration of the interest period, on the day corresponding in its
number to the “Drawdown Date”. The first interest period for each additional “Drawdown”
under the Loan begins with the last day of the previous interest period and ends on the
last day of the duration determined or agreed for it. Each further “Interest Period” for a
“Drawdown”

 

 

	 	 	under the respective “Loan” begins on the last day of the previous interest
period and ends on the last day of the duration determined or agreed for it. If a
repayment date under Clause 10 (Repayment) falls within the determined or agreed duration
of an interest period, the interest period ends on the repayment date.

	7.4	 	If the last day of an interest period falls on a day, which is not a Banking Day, the
interest period is extended to the next “Banking Day” unless this day falls in the next
calendar month. In this case, the interest period ends on the immediately preceding “Banking
Day”.
	 
	7.5	 	If more than one interest period under a respective “Loan” end on the same day, the relevant
“Drawdowns” will be combined on the relevant day and will be treated in the future as a single
“Drawdown”.
	 
	7.6	 	The respective margin for the total duration of the “Term Loan” is 1.6 % p.a., for the
“Bridge Loan” 2 % p.a. and for the “Revolver” 1.8 % p.a.
	 
	7.7	 	If the “Agent” can only determine the “Reference Interest Rate” for an interest period on the
basis of quotes from the “Reference Banks”, the applicable “Reference Interest Rate” for this
interest period is the interest rate calculated by the “Agent” (if appropriate, rounded up to
the next full sixteenth of a percentage point) from the arithmetic mean of the interest rates
which have been notified to the “Agent” on the “Interest Determination Date” by at least two
“Reference Banks” at approximately 11:00 a.m. CET.
	 
	7.8	 	The interest will be accrued and is due for payment at the end of each interest period. The
“Agent” will inform the “Borrower” and the “Banks” about the amount of the interest payments
which are due in a timely manner prior to expiration of each interest period.
	 
	7.9	 	To the extent that payments are made on dates other than the end of an interest period, the
“Borrower” must compensate the “Banks” for all damages resulting from the early repayment.
	 
	 	 	A loss of margin is not being compensated.
	 
	8.	 	Market Disruption
	 
	 	 	If one of the following events occurs, the “Agent” will inform the “Borrower” and the
“Banks” about this without undue delay (“Market Disruption Notice”):

	 	(a)	 	the determination of “EURIBOR” is not possible and none or only one of the
“Reference Banks” has provided an interest rate to the “Agent” by
11:30 a.m. CET on the respective “Interest Determination Date” which is required in
order to determine the “Reference Interest Rate”, or
	 
	 	(b)	 	the “Agent” has received a notice prior to the beginning of the interest
period regarding a “Drawdown” from one or more “Banks” whose “Quotas” account in
aggregate at least 50 % of all “Quotas” that for 

 

 

	 	 	 	reasons generally affecting the
European interbank market the refinancing costs for the “Banks” for this “Drawdown”
are higher than the “Reference Interest Rate” for this interest period.

	 	 	Upon receipt of such a “Market Disruption Notice” the respective “Drawdown” shall be paid
out if the “Borrower” does not instruct otherwise; the “Agent” and the “Borrower” will
negotiate in good faith within a period of 10 days about an alternative method for
determining the interest for the “Drawdown”. Such an alternative method can contemplate
both another interest period and another reference interest rate. If no agreement is
reached prior to expiration of this deadline, the interest rate for the relevant
“Drawdown” for each “Bank” is the sum of the respective margin under Clause 7.6 and the
annual refinancing costs for the relevant “Bank” with regard to its participation in the
“Drawdown”. Each “Bank” will inform the “Agent” about this interest rate as quickly as
possible and in any event prior to the end of the relevant interest period.
	 
	9.	 	Default Interest
	 
	9.1	 	If the “Borrower” does not fulfill a payment obligation under this Facility Agreement when
due, the “Borrower” owes default interest from the due date until the date of payment in an
amount of the “Base Interest Rate” plus 5 % p.a. or, if it is an interest payment with which
the “Borrower” is in default, liquidated damages in the corresponding amount. A reminder is
not required.
	 
	9.2	 	The amount of the default interest or the damages will be determined by the “Agent” and will
be notified to the “Borrower” and the “Banks”.
	 
	9.3	 	The “Banks” retain the right to prove that they have suffered higher damages, and in the case
of liquidated damages the “Borrower” retains the right to prove lower damages.
	 
	10.	 	Repayment
	 
	10.1	 	The “Term Loan” is to be repaid quarterly in arrears on 31.03, 30.06, 30.09. and 31.12. of
each year in 20 equal repayment installments; the first installment is due on 31.03.2008, and
the last installment is due on 31.12.2012.
	 
	 	 	The amount of the respective installment shall be equivalent to the amount stipulated in
the repayment plan provided in Annex 30 (Repayment Plan). In the event that any changes to
the installments should have to be made, in particular because (i) the “Borrower” enforces
the rights pursuant to Clause 6.1, the amount of the installments shall be recalculated
based on the balance of the loan.
	 
	 	 	The amount of said newly calculated installments shall be communicated to the “Borrower”
and the “Banks” for their information by the “Agent” in writing in the form of an adjusted
Repayment Plan in due time prior to the due date of the next installment.
	 
	10.2	 	The “Bridge Loan” is to be repaid in the amount of the respectively paid out “Investment
Subsidies”, but no later than in full on 31.12.2008. The amounts

 

 

	 	 	received in the “Investment
Account” in connection with the “Investment Subsidies” will be applied respectively at the end
of the next interest period as a repayment of the “Bridge Loan”.

	10.3	 	The final due date for the Revolving Facility is on 31.12.2012.
	 
	11.	 	Voluntary Repayment
	 
	11.1	 	The “Term Loan” and the “Bridge Loan” can each be voluntarily repaid in advance in a single
sum or in partial amounts of at least EUR 2,000,000 at the end of any interest period upon
giving at least 5 “Banking Days” irrevocable written advance notice.
	 
	 	 	The voluntary repayment of the “Bridge Loan” is only permissible after complete repayment
of the “Term Loan”.
	 
	11.2	 	The “Borrower” is obliged (1) to make a mandatory special repayment of the “Term Loan” at the
end of the current interest period under the “Term Loan” and (2) after complete repayment of
the “Term Loan”, to make a mandatory special repayment of the “Revolver” at the end of the
current interest period under the “ Revolver” and (3) after complete repayment of the
“Revolver”, to make a mandatory special repayment of the “Bridge Loan” at the end of the
current interest period under the “Bridge Loan”

	 	(a)	 	with 100% of each amount in excess of EUR 500,000 in an individual case
and/or per business year of the “Borrower” derived from any proceeds from the sale of
fixed assets of the “Borrower” unless the sale of assets to be replaced is involved.
In the case of the sale of assets to be replaced, a mandatory special repayment must
be made if the replacement acquisition has not been demonstrated to the satisfaction
of the “Agent” within 180 days after the date of sale; and
	 
	 	(b)	 	with payments from the “Insurance Policies” to the extent that these exceed
EUR 100,000 in an insured event to the extent that the payment is not used pursuant
to Clause 13.3 within the deadline set there.

	11.3	 	In the case of early repayment of the “Term Loan”, the respective last due scheduled
repayment installment will be reduced by the specially repaid amount.
	 
	 	 	The “Bridge Loan” and the “Revolver” are reduced by the respective specially repaid amount
upon early repayment.
	 
	12.	 	New Drawdowns
	 
	 	 	Amounts repaid under the “Term Loan” and the “Bridge Loan” cannot again be drawn down.
	 
	 	 	Each “Drawdown” under the “Revolver” can be completely or partially repaid as of the end
of the respective interest period, whereby both the 

 

 

	 	 	amount to be repaid as well as the
remaining amount to be paid out cannot be less than EUR 500,000 if the outstanding amount
is not completely repaid. The repayment of amounts paid out under the “Revolver” must be
notified to the “Agent” in writing using the form set forth in Annex 16 (“Template
Repayment Revolver”) at least five “Banking Days” prior to the end of the respective
“Interest Period”.
	 
	 	 	Amounts repaid under the “Revolver” can be again drawn down if the preconditions for
Drawdown set forth in Clause 5 are satisfied.

	13.	 	Accounts
	 
	13.1	 	The “Borrower” is required to establish the following accounts prior to the first Drawdown
under the “Loans”, which accounts are to be maintained exclusively without overdraft capacity
and are to be pledged with first ranking to the “Security Agent” and with regard to which the
respective banks where the accounts are maintained have waived their pledge rights under their
general terms and conditions:
	 
	13.1	 	“Project Account”:
	 
	 	 	All payments of the “Agent” to the “Borrower” under the “Loans” will be made to the
“Project Account”.
	 
	 	 	Payments of the “Borrower” from the “Project Account” can only be made in accordance with
the purpose of the respective “Loans”. In the case of a “Threatening Event of Default”
under Clause 20, the “Borrower” is only entitled to make payments from the “Project
Account” with the prior written consent of the “Agent”.
	 
	13.2	 	“Investment Account”
	 
	 	 	The “Investment Account” will be credited with payments under the “Investment Supports”.
The “Borrower” undertakes to instruct the appropriate tax office to make payments for the
“Project” on an annual basis under the “Investment Supports” exclusively to the
“Investment Account”; or, if and as long as these payments cannot be made to the
“Investment Account” for any technical reasons, to make same exclusively to the “Project
Account”. The “Borrower” undertakes to transfer payments for the “Project” under
“Investment Supports”
within 5 bank business days after receipt to the “Project Account” or to the “Investment
Account”.
	 
	 	 	The “Borrower” can only use the funds in the “Investment Account” for the repayment of the
“Bridge Loan”. Any other disposition of the funds is excluded.
	 
	 	 	The “Borrower” hereby irrevocably authorizes the “Agent” to collect all of the amounts
credited to the “Investment Account” as of the end of an interest period following the
credit for repayment of the amounts paid out under the “Bridge Loan”. The “Agent” is
hereby expressly released from the application of § 181 BGB.

 

 

	13.3	 	“Insurance Account”
	 
	 	 	The “Borrower” will make sure that all payments in connection with the “Insurance
Policies” are credited to the “Insurance Account”.
	 
	 	 	The “Borrower” shall use funds in the “Insurance Account” only

	 	(a)	 	for a replacement acquisition or reconstruction of the assets affected by
the insurance event if the “Borrower” proves the replacement acquisition to the
satisfaction of the “Agent” within 180 days after the payout of the insurance amount,
whereby a copy of the order is sufficient proof;
	 
	 	(b)	 	if payments under the business interruption insurance are involved, to
cover the ongoing costs of operations if the “Borrower” proves the operating costs to
the satisfaction of the “Agent” within 180 days after the payout of the insurance
amount; and
	 
	 	(c)	 	if payments under the business liability insurance are involved, for the
satisfaction of claims for damages under imperative provision of law.
	 
	 	 	 	Any other disposition of the funds is excluded.

	13.4	 	“Debt Service Reserve Account”
	 
	 	 	Before drawdown of any of the “Loans” “Borrower” is required to pay the “Debt Service
Reserve” from the first “Drawdown” under the “Loans” into the “Debt Service Reserve
Account”. The “Borrower” shall have the right to transfer the “Debt Service Reserve” to
the “Debt Service Investment Account” as a time deposit.
	 
	 	 	To the extent that a part or the entire amount of the “Debt Service Reserve” has been used
to repay an amount due in connection with the “Loans”, the “Borrower” is required to again
restock the “Debt Service Reserve” on the “Agent’s” first demand.
	 
	 	 	The “Debt Service Reserve” remains in the “Debt Service Reserve Account” until all claims
of the “Banks” under and in connection with the Facility Agreement have been fulfilled.
	 
	 	 	The “Borrower” can only dispose of the interest credited to the “Debt Service Reserve
Account” pursuant to a separate interest agreement between the “Borrower” and the account
holding bank, but not of the “Debt Service Reserve”.
	 
	 	 	If the “Borrower” does not comply with its payment obligations under the Facility
Agreement, the “Borrower” hereby irrevocably authorizes the “Agent” to apply the “Debt
Service Reserve” to settle due obligations under Clause 14.4. The “Agent” is released from
the restrictions of Section 181 German Civil Code.

 

 

	14.	 	Payments of the “Borrower” and the “Banks”
	 
	14.1	 	All payments of the “Borrower” and the “Banks” to the “Agent” under the “Contract Documents”
are to be rendered to account number 2013535410, routing number 30010400, IBAN: DE
91300104002013535410, a general account of the “Borrower” to be established for this purpose
with IKB Deutsche Industriebank AG, over which the “Borrower” has no authority to make
dispositions.
	 
	14.2	 	All payments of the “Borrower” to the “Agent” under the “Contract Documents” are due for
payment in EUR on the due date by 10:00 a.m. CET. If payments under this Facility Agreement or
the “Contract Documents” fall due on a day which is not a “Banking Day”, the due date is
extended to the next “Banking Day” in the same calendar month, or if the next “Banking Day”
falls in the next calendar month, the due date is the immediately preceding “Banking Day”.
	 
	14.3	 	Each payment made by the “Borrower” or a third party make to the “Agent” for obligations of
the “Borrower” under the Facility Agreement or the “Contract Documents” will be distributed by
the “Agent” to the “Banks” without undue delay corresponding to their “Quotas”. If a repayment
is the result of the termination of the Facility Agreement in relation to a specific “Banks”
pursuant to Clause 15.3 the “Agent” will distribute the payment to such “Banks”.
	 
	14.4	 	If a payment of the “Borrower” or a third party for the obligations of the “Borrower” is not
sufficient to satisfy all obligations of the “Borrower” towards the “Banks” upon receipt of
the payment, the “Agent” is authorized to credit the received payments to the obligations of
the “Borrower” in the following sequence:

	 	•	 	first, to the outstanding costs and disbursements of the “Agent”,
	 
	 	•	 	second, to any outstanding fees,
	 
	 	•	 	third, to default interest,
	 
	 	•	 	fourth, to due interest,
	 
	 	•	 	fifth, to due amounts of principal,
	 
	 	•	 	sixth, to all other due payments.

	 	 	Any different determinations by the respective “Borrower” of how to credit the payment
will not be taken into account.
	 
	14.5	 	Interest and fees will be calculated on the basis of the actual number of days elapsed in
relation to a year having 360 days.

 

 

	15.	 	Changes in certain Bases of the Contract, Taxes
	 
	15.1	 	If changes in law or changes in guidelines, orders or requirements of the banking supervisory
authorities with regard to minimum reserves or liquidity or equity capital requirements (e.g.,
the requirements under the so-called Basel II Principles) result in,

	 	(a)	 	an increase of the costs of a “Bank” for maintaining its obligations
assumed under this Agreement,
	 
	 	(b)	 	an increase of the costs of a “Bank” of providing, complying with or
financing its participation in a “Drawdown” or the maintenance of its credit promise,
or
	 
	 	(c)	 	a decrease in any amount or interest which the relevant “Bank” has received
or is supposed to receive under or in connection with this Facility Agreement,

	 	 	the relevant “Bank” is entitled to demand payment of an amount equal to these additional
costs or the reduction from the “Borrower”. A “Bank” which intends to demand the amounts
mentioned under (a) through (c) must inform the “Borrower” accordingly through the
“Agent”. This notice must state the determined amount of the additional costs or the
reduction, the time at which these costs or the reduction was fist incurred, as well as
the reason for it. The “Banks” are, however, not obliged to provide statements, which
contain confidential information about their organization or internal business, affairs or
which would permit corresponding conclusions to be drawn. The payment of the amount of the
additional costs or the reduction is due 15 “Banking Days” after receipt of the notice at
the “Borrower”.
	 
	15.2	 	The obligation to compensate costs pursuant to Clause 15.1 (a) or (b) above or the obligation
to pay the difference amount pursuant to Clause 15.1 (c) above shall not exist, if the
respective request or order of the banking supervisory authority is directed only against an
individual “Bank” and is not related to the “Project” or a person involved in the “Project”.
	 
	15.3	 	In case that the “Borrower” is obliged to make a payment pursuant to Clause 15.1 (a) and (b)
or payment of the difference amount pursuant to Clause 15. 1 (c) above, it shall be entitled
to terminate the “Facility Agreement” regarding such “Banks”, which ask for payments pursuant
to Clause 15.1. The “Borrower” shall then be obliged to repay the outstanding “Loans” as far
as they relate for the “Quotas” of such “Banks” at the end of the respective “Interest Period”
or, together with a prepayment indemnity (Vorfälligkeitsentschädigung), during the respective
“Interest Period”. The calculation of the prepayment indemnity shall be done in accordance
with actual binding judgments.

 

 

	15.4	 	The “Borrower” must make all payments to the “Banks” without deductions or withholdings for
taxes, levies, fees or similar burdens to the extent that the “Borrower” is not required by
law to make the deduction or the withholding.
	 
	 	 	If the “Borrower” is required by law to make deductions or withholdings of tax, levies or
fees, it must increase the amounts to be paid so that the net amount remaining after the
deduction or the withholding corresponds to the amount which the “Banks” would receive
upon payment of the originally owed amount without deduction or withholding.
	 
	 	 	If a “Bank” receives at a later stage a tax credit, a tax refund or a tax reduction, which
results from a payment, which has to be made in accordance which Clause 2 above, the
“Bank” has to pay (if is able to pay notwithstanding the received payment) to the
“Borrower” an amount in its own fair judgment. However, if the tax credit, the tax refund
or the tax reduction is not related to a payment made by a “Borrower” pursuant to
sub-clause 2 above or the total amount does not correspond, (a) the respective “Bank” is
permitted to decide in its own discretion about the reasonable level of amount to be paid
to the “Borrower” and the point of time of such payment, (b) the “Bank” shall decide in
its own fair judgment about the use, the application or the regulation of such tax refunds
or tax privileges and (c) the respective “Bank” is not obliged to release any information
regarding its own tax issues or calculations.
	 
	 	 	If a “Bank” which has paid an amount to the “Borrower” according to Paragraph 3 notifies,
that the payment or privilege relating to the payment was incorrect or has been withdrawn,
the “Borrower” has to refund such an amount to the “Bank” after request, which is in the
“Bank’s” own fair judgment necessary to bring the “Bank” in the same situation as if the
“Bank” would have been able to receive the refund or the privilege.
	 
	15.5.	 	Each “Bank” shall represent to the “Borrower” after its request a letter largely equivalent
to the form of Rundschreiben des Bundesfinanzministeriums vom 20.Oktonber 2005 (Circular of
the German Ministry of Finance) dated 20 October 2005 (IV B 7 — S2742a — 43/05) to § 8a
KStG.
	 
	16.	 	Representations and Warranties
	 
	16.1	 	The “Borrower” represents to the “Agent” and the “Banks” on the date on which this Facility
Agreement is signed that the following statements are correct:
	 
	16.1.1	 	The “Borrower” is a duly established company with limited liability under German law. The
“Borrower” has the authority to conduct and continue its present business without restrictions
and to own and possess its current assets.
	 
	16.1.2	 	The “Borrower” is entitled to validly conclude the “Contract Documents” as well as the
“Project Agreements”, to exercise its rights under these contracts 

 

 

	 	 	and to perform its
obligations under these contracts and has all corresponding “Permits” at the respective point
in time.

	16.1.3	 	All “Permits” as well as all applications or other actions relating to public authorities
which the “Borrower” is required to obtain or carry out according at the respective time,
based on the status of the “Project”, have been obtained or carried out by the “Borrower” and
have been granted by a final order and have not been withdrawn or revoked.
	 
	16.1.4	 	The presented and to be presented annual and quarterly financial statements to the “Banks”
pursuant to the provisions of this Facility Agreement were prepared in accordance with
applicable statutory provisions and present a true and fair view of the assets, the financial
situation and the earnings position of the “Borrower”, and there have been no “Material
Adverse Effects” at the “Borrower” since the time such financial statements have been
prepared.
	 
	16.1.5	 	There is no event of default under this Facility Agreement and no “Threatening Event of
Default”.
	 
	16.1.6	 	There are not proceedings before a court, an arbitral tribunal or an administrative
authority pending or threatened against or initiated by the “Borrower” which in the aggregate
exceed an amount in controversy of EUR 2,000,000.
	 
	16.1.7	 	The “Borrower” conducts its business in accordance with all applicable legal provisions,
including environmental provisions and in accordance with all applicable administrative
regulations and orders.
	 
	16.1.8	 	The “Borrower” has not established any security interest except the “Security” over any of
its assets.
	 
	16.1.9	 	The respective “Borrower” has properly submitted all tax declarations and has paid all taxes
when due, regardless of their type.
	 
	16.1.10	 	The “Borrower” is neither insolvent nor is insolvency imminent. The “Borrower” has not been
served with an application to commence insolvency proceedings nor have such proceedings been
commenced.
	 
	16.1.11	 	The “Borrower” has completely and accurately disclosed to the “Agent” and the “Banks” all
facts and information which upon exercising the care of a prudent businessman could be assumed
would be of importance for the credit decision of the “Banks”. All information which the
“Borrower” or one of its advisors has forwarded to the “Agent” or the “Banks” in writing are
accurate and complete at the time they were forwarded to the “Banks” or the “Agent”.
	 
	16.1.12	 	The “Borrower” has at least until the repayment of the “Loans” the unrestricted right to
dispose or right of use over all relevant licenses, intellectual property rights or similar
rights for the “Project” or has secured access to these rights under contract law by way of
the “Project Agreements”.
	 
	16.1.13	 	The “Borrower” is drawing down the “Loans” for its own account.

 

 

	16.1.14	 	Except for the “Project Contracts” listed in Annex 5 (Project Contracts), no other material
products which have not been notified by the “Borrower” to the “Agent” are required for the
construction and the operation of the “Project”. The “Borrower” is not aware of, and has not
been notified about any performance defaults under the “Project Contracts”, nor should the
“Borrower” have been aware of such performance defaults as a result of the specific
circumstances unless the “Borrower” has informed the “Agent” about such a performance default
without undue delay.
	 
	16.2	 	The representations and warranties contained in Clause 16.1 are deemed to have been repeated
by the “Borrower” for each “Drawdown” and for each payment of interest with regard to the set
of facts and the respective circumstances existing at that time if the respective “Borrower”
has not notified the “Agent” in writing at least five “Banking Days” prior to the “Drawdown”
or the interest payment that the “Borrower” cannot make one of the representations and
warranties set forth in Clause 16.1 of this Facility Agreement, and the notice must state the
reasons. This does not affect the rights under Clause 20.1.3
	 
	17.	 	Obligations to provide Information
	 
	17.1	 	The “Borrower” will make available to the “Agent” for the purpose of forwarding to the
“Banks” and the “Guarantors” his own certified financial statements (inter alia, balance
sheet, profit and loss statement, cash flow account) and auditors reports as well as the
certified consolidated financial statements (inter alia, balance sheet, profit and loss
statement, cash flow account) and audit reports for “FS GmbH”, “FS Holdings” (consolidated) as
well as “FS” (consolidated) within 120 days after conclusion of the his business year. The
auditors report is to contain an opinion about the conditions, as they pertain to the market
standard, of the internal delivery and service commerce according to Clause 19.1.14.
	 
	 	 	Together with its respective audited financial statements, the “Borrower” will also
present the calculation of the “Surplus Cash Flow”.
	 
	 	 	In the event that the “Borrower” should intend to make payments pursuant to Clause
19.1.36, “Borrower” shall present the audited annual report for the fiscal year preceeding
the pertinent payment along with the calculation of the “Equity Resources Quota” and of
the “Debt Service Coverage Level” and a confirmation of compliance with same in the form
of the template provided in Annex 29 (Template Confirmation Financial Indices).
	 
	17.2	 	The “Borrower” will provide to the “Agent” for the purpose of forwarding to the “Banks” and
the “ Guarantors” a certificate of the “Accountant” within 120 days after conclusion of its
respective business year that the “Accountant” has examined the information of the “Borrower”
(i) on the agreed key financial figures in Clause 18 (Key Financial Figures) and on the
“Surplus Cash Flow” and (ii) on the amount of the investments made with regard to the
plausibility of the information and no objections have been raised.

 

 

	17.3	 	The “Borrower” will provide to the “Agent” for the purpose of forwarding to the “Banks” and
the “Guarantors” within 45 days after the end of each business quarter the quarterly interim
numbers, if any, (balance sheet, profit and loss statement, cash flow account, liquidity
status, information on inventories, debtors and creditor payment periods, with all information
being accompanied by a comparison of the actual numbers to the planned numbers in the
“Business Plan”).
	 
	 	 	The “Borrower” will provide information, in the context of its quarterly reporting, about
the produced number of solar modules in the amount of the produced mega watts and will
also provide for a calculation of the key financial figures pursuant to Clause 18 (Key
Financial Figures) within 45 days after the end of its respective business quarter.
	 
	 	 	If the “Borrower” intends to make “Royalty Payments”, “Borrower” will provide the first
audited annual report in 2007 and subsequently the respective quarterly interim numbers
along with the calculation of the “Equity Resources Quota” and of the “Debt Service
Coverage Level” and a confirmation of compliance with same in the form of the template
provided in Annex 29 (Template Confirmation Financial Indices).
	 
	17.4	 	The “Borrower” will provide to the “Agent” for the purpose of forwarding to the “Banks” and
the “Guarantors” within 45 days after the end of each business quarter the quarterly
consolidated interim numbers, if any, (balance sheet, profit and loss statement, cash flow
account) for the “FS Group”.
	 
	17.5	 	The “Borrower” will provide the “Agent” for the purpose of forwarding to the “Banks” and the
“Guarantors” an updated corporate plan (business plan) with the financial planning, the
planning of sales as well as the investment planning and liquidity planning for the following
business year one month prior to expiration of a then respective current business year. To the
extent that the corporate plan is different from the “Business Plan”, the consent of the
“Agent” is required.
	 
	17.6	 	The “Borrower” grants the “Agent” and any third party which it may engage and which is
subject to professional confidentiality as well as the “Guarantors” upon their request access
to the “Borrower’s” business records and will allow the “Agent”, the engaged third parties who
are subject to professional confidentiality and the “Guarantors” access upon their first
demand to view and have access at the normal business hours to the “Borrower’s” business
premises, business records and the plant and will give the “Agent” information about the
security collateral.
	 
	17.7	 	The “Borrower” will inform the “Agent”, without undue delay, about all events and
circumstances related to the “Borrower” and “FS GmbH” that could endanger the economic
viability and the operation of the “Project” and/or the servicing of the “Loans”, and, upon
the “Agent’s” request, about the “Borrower’s” general economic situation as well as the
general economic situation of “FS GmbH”.

 

 

	17.8	 	The “Borrower” will cooperate with the “Project Appraiser” so that he can provide a “Project
Progress Report” to the “Agent” and the “Banks” by the “End of the Construction Phase” in a
timely manner within 15 days after expiration of every calendar month.
	 
	17.9	 	“Borrower” will inform the “Agent” without undue delay about any delays in the construction
phase of the “Project” compared to the “Schedule” and will show the “Agent” upon its request
the effects of such delays and will also show how compliance with the intended completion date
can be assured.
	 
	17.10	 	“Borrower” will inform the “Agent” without undue delay about technical disturbances which
lead or could lead to a negative impact on the operations of “Project”.
	 
	17.11	 	The “Borrower” will inform the “Agent” until the “End of Construction Phase” on a quarterly
basis and thereafter on a yearly basis, together with the certified financial statements under
Clause 17.1, of an actual inventory list of the equipment, machinery and technical tools which
have been used for security.
	 
	17.12	 	The “Borrower” will inform the “Agent” about changes in the “Borrower’s” management.
	 
	17.13	 	The “Borrower” will inform the “Agent”, without undue delay, about the occurrence or
imminence of a “Threatening Event of Default”.
	 
	18. 	 	 Key financial Numbers
	 
	 	 	“Borrower” undertakes to comply with the following key financial figures:
	 
	18.1	 	The “Debt Service Coverage Level” cannot be lower than the value of 1.1:1;
	 
	18.2	 	The “Debt Level” cannot exceed the following values for the following respective time
periods:

	 	 	 	 	 
	Time period	 	Debt Level	 
	from 1 Jan. 2007 to 31 Dec. 2008
(inclusive)
	 	 	3.0:1	 
	 
	 	 	 	 
	from 1 Jan. 2009 to 31 Dec. 2009
(inclusive)
	 	 	2.5:1	 
	 
	 	 	 	 
	from 1 Jan. 2010 until the end of
the term of the “Loans”
	 	 	1.5:1	 

	18.3	 	The Key Financial Figures will be determined by the “Borrower” on 31.03, 30.06, 30.09
respectively of each year on the basis of the quarterly numbers of the “Borrower” pursuant to
Clause 17.3 for the precedent 12 months and as of 31.12 of each year on the basis of the
certified annual accounts pursuant to Clause 17.1, for the first time as of 31.12.2007.
Compliance with the key

 

 

	 	 	financial figures must be confirmed to the “Agent” by the commercial managing director of
the “Borrower” in writing each time.
	 
	 	 	If the “Borrower” and the “Agent” do not agree about the determination of the key
financial numbers on the basis of the quarterly numbers, the “Agent” is entitled to
retain an accountant at the costs of the “Borrower” who will determine and certify the
key financial figures.
	 
	19. 	 	 Covenants and Conditions
	 
	19.1	 	The “Borrower” will
	 
	19.1.1	 	establish the “Securities” or will make sure that they are established free of prior
encumbrances with a first priority and free of rights of third parties; should the
“Securities” deteriorate, especially due to a loss of value and/or losses, upon demand of the
“Agent”, the “Borrower” will provide the “Banks” with additional securities.
	 
	19.1.2	 	obtain all “Permits” required for a business operations and the “Project” at the respective
time and will ensure that the “Permits” are maintained and will provide proof of this to the
“Agent” upon its request and will construct and operate the “Project” based on the established
European environmental standards and guidelines, and will observe legal ordinances and
regulations;
	 
	19.1.3	 	conduct and insure his business operations in accordance with the standard common in the
industry and with the care of a prudent businessman. In particular, the “Borrower” will issue
invoices in the intervals common in the industry to his customers for solar modules and will
attend to a timely collection of outstanding receivables;
	 
	19.1.4	 	not enter into futures transactions without cover without the prior consent of the “Banks”
and the “Guarantors”;
	 
	19.1.5	 	comply at all times with all terms and conditions and requirements of the “EU Decision”, the
“Deficiency Guarantee”, the “Investment Subsidies and Supports” and the “Subsidy Orders” and
will observe all obligations contained therein;
	 
	19.1.6	 	not change the type and scope of his business operations without the prior written consent
of the “Banks” and the “Guarantors” to the extent that such a change would lead to a “Material
Adverse Change” or endanger the “Project”;
	 
	19.1.7	 	conclude the “Project Contracts” in the form agreed with the “Banks” to the extent that they
were not already supposed to be concluded and were concluded under Annex 5 (Project Contracts)
prior to the first Drawdown under one of the “Loans” and will not terminate, amend or waive
their rights under the “Project Contracts” without the prior written consent of the “Banks”
and the “Guarantor” if such a termination, amendment or such a waiver results in a “Material
Adverse Change” or an endangerment of the “Project”.

 

 

	 	 	The “Borrower” will inform the “Agent”, without undue delay, about all amendments to the
contracts;
	 
	19.1.8	 	report in the context of the quarterly reporting about the conclusion of, modification of
and/or additions to “Off-Take Agreements”, provide the “Agent” with copies of the agreements
upon request and will assign or see to the assignment of the claims under the newly concluded
“Off-Take Agreements” to the “Banks” immediate afterward upon the first demand of the “Agent”;
	 
	19.1.9	 	inform the “Agent” without undue delay if a customer of solar modules defaults on payments
under the “Off-Take Agreements”;
	 
	19.1.10	 	inform the “Agent” and the “Guarantors” with undue delay about all material events and
circumstances, which could endanger the commercial viability of the “Project” and/or the
servicing of the “Loans”. In particular, the “Borrower” will inform each of the “Agent” and
the “Guarantor” without undue delay as soon as an “Event of Default” or the “Threatening of an
Event of Default” under this Facility Agreement or a performance under the “Project Contracts”
occurs;
	 
	19.1.11	 	fulfill his obligations under this Facility Agreement at least with the same priority with
their other present and future unsubordinated obligations. This does not apply to those
obligations which have statutory priority;
	 
	19.1.12	 	make sure that his business operations and the “Project” are insured in a commercially
reasonable scope and

	 	(a)	 	that the “Insurance Policies” are concluded no later than the points in
time set forth in Annex 11 (insurance) and that the insurance is maintained
throughout the term of this Facility Agreement (with the exemption of the insurances
for the construction period) and in particular that the material assets to be
brought into the “Project” are insured completely during the shipping and
construction phase of the “Project” as well as during the operational phase, against
fire and all other significant elemental damaging events which are standard in the
industry,
	 
	 	(b)	 	that the insurance contracts for the “Insurance Policies” including all
amendments are sent as copies to the “Agent” immediately after being concluded,
	 
	 	(c)	 	that the “Agent” immediately reports the new conclusion of or amendments
to the insurance contracts and that the “Agent” provides, upon request, a
confirmation from the “Insurance Agent” showing that the relevant “Insurant
Policies” are suitable and standard for the industry;
	 
	 	(d)	 	that the claims under the insurance contracts for the “Insurance
Policies” with the exception of the third party liability insurance are assigned
immediately after their conclusion as security to the “Banks”

 

 

	 	 	 	and ensure that they present to the “Agent” the respective insurance letters and
acknowledgements if requested; and
	 
	 	(e)	 	that evidence about the payment of the insurance premiums is always
provided to the “Agent” without undue delay;

	19.1.13	 	maintain his rights of disposition and/or use for the “Project” and its all relevant
licenses, intellectual property rights and similar rights are maintained in full for their
respective business operations and will immediately pay any license fees, registration fees
and similar fees when due if the pre-requisites indicated under Clause 19.1.35 are met. In
particular, the relevant licenses, intellectual property rights and similar rights are
maintained in such a way that in the case of insolvency of the “Borrower” or “FS”, the
“Borrower” or the appointed insolvency administrator for the “Borrower” or a legal successor
to the “Borrower” can enact them. Should such licenses or intellectual property rights for the
“Borrower” be violated or affected by a third party, the “Borrower” will exhaust all available
legal means in order to defend themselves from such violation or offence.
	 
	 	 	If additional licenses, intellectual property rights or similar rights are required for
the execution of the “Project” or the “Borrower’s” business operations, the “Borrower”
will take all necessary action in order to obtain or register these licenses,
intellectual property rights or similar rights;
	 
	 	 	The “Borrower” will not violate any necessary intellectual property rights or license
rights of third parties required for the “Project” or its “Business Operations” and will
provide evidence of this to the “Agent” upon its request in a form satisfactory to the
“Agent”;
	 
	 	 	If the “Borrower” has indications about a violation of intellectual property rights or
license rights of third parties, the “Borrower” will inform the “Agent” about this
without undue delay and will take all necessary action in order to avoid harm to the
“Project” or its business operations;
	 
	19.1.14	 	will effect the internal supply and services traffic (including during the investment
phase) with JWMA Partners LLC, Phoenix, as well as the companies within the control of JWMA,
“affiliated companies” and the “sponsors” only within the scope of its normal business
activities and not on worse terms and conditions that are common between third parties acting
at arm’s length.
	 
	 	 	The “Borrower” shall conclude no distribution and take-off contracts with “FS GmbH”, in
which the “maximum commission entitlement” or the “maximum distribution margin” are
exceeded and to whom “FS GmbH” pays no payments exceeding the “maximum commission
entitlement” or the “maximum distribution margin” under the distribution and take-off
contracts;
	 
	19.1.15	 	deleted

 

 

	19.1.16	 	not complete or have completed any merger or spin-off or reorganization without the prior
written consent of the “Banks” and the “Guarantors”;
	 
	19.1.17	 	not change their corporate form or allow it to be changed and will not enter into any
corporate group agreements or other agreements which could have effects on its corporate or
capital structure without the prior written consent of the “Banks” and the “Guarantors;
	 
	19.1.18	 	not maintain or open any additional business accounts other than the accounts contemplated
in Clause 13 without the prior written consent of the “Banks” and the “Guarantors”;
	 
	19.1.19	 	not enter into any agreements resulting in a “Material Adverse Change” without the prior
written consent of the “Banks” and the “Guarantors”;
	 
	19.1.20	 	carry out and supervise the construction and the operation of the “Project” (especially
regular maintenance and repair of the assets required for the business operations) with the
care of a prudent businessman and complete the “Project” within the “Schedule”;
	 
	19.1.21	 	comply with the “Time Schedule” and inform the “Agent” about any delays compared to the
“Time Schedule” without undue delay. The “Agent” is entitled to retain the “Project Appraiser”
for the purpose of examining the cause of any delays in excess of 4 weeks. The costs for such
an examination will be borne by “Borrower”, whereby the “Agent” will give due consideration to
the justified interests of “Borrower” with regard to the amount of costs;
	 
	19.1.22	 	not permit any increase in the stated project costs in the “Business Plan” without the
prior written consent of the “Banks” and the “Guarantors” unless the increased project costs
are financed by the “Sponsors” using subordinated loans/shareholder loans. “Borrower” shall
provide evidence to the “Agent” in satisfactory form in this case about the bearing of costs
by the “Sponsors”;
	 
	19.1.23	 	retain the “Debt Service Reserve” on the “Debt Service Reserve Account”;
	 
	19.1.24	 	apply the “Cash Flow from Operations” in accordance with the “Cash Flow Waterfall”;
	 
	19.1.25	 	comply with the requirements of the “Business Plan”;
	 
	19.1.26	 	establish and maintain a proper accounting department as well as an IT supported
controlling system which, among other items, is capable of providing a monthly comparison
between actual and planned numbers;
	 
	19.1.27	 	conclude the “Interest Hedge Agreement” by no later than before the first “Drawdown” and
provide evidence of this to the “Agent” without a separate request. The “Agent” will offer
“Borrower” corresponding interest hedging transactions upon its request;
	 
	19.1.28	 	to pledge to the “Banks” any unencumbered real estate and/or real estate to be acquired in
the future that is used or is to be used for operations.

 

 

	 	 	The “Borrower” will inform the “Agent” about the acquisition of any real estate without
request and will comply with the first request of the “Agent” to pledge such real
estate.;
	 
	19.1.29	 	not enter into any “Financial Liabilities” with the exception of “Permitted Financial
Liabilities”;
	 
	19.1.30	 	not grant any security rights over its respective assets or parts of the assets to third
parties or encumber the assets with security interests or other rights for the benefit of
third parties or permit the assets to be encumbered with security interests or other rights
for the benefit of third parties without the prior written consent of the “Banks” and the
“Guarantors”;
	 
	19.1.31	 	not sell any assets or otherwise provide them to third parties or undertake an obligation
for a sale or transfer of possession outside of the ordinary course of business without the
prior written consent of the “Banks” and the “Guarantors”;
	 
	19.1.32	 	not grant any loans, guarantees or similar instruments to third parties without the prior
written consent of the “Banks” and the “Guarantors”;
	 
	19.1.33	 	only use shareholder loans/loans from the “Sponsors” if the resulting payment and repayment
obligations are subordinated in a manner which is secure in the case of insolvency;
	 
	19.1.34	 	make any repayments for shareholders loans/loans granted by the “Sponsors” only subject to
written approval by the “Banks” and the “Guarantors”;
	 
	19.1.35	 	only make interest payments for shareholders loans/loans granted by the “Sponsors” or
payments based on management services, or “Royalty Payments” based on technical or other
services, management services, licensing fees, registration fees or similar fees to
“affiliated companies” or other payments to one of the “Sponsors”, except for payments under
Clause 19.1.34 or 19.1.36, or payments to an “Affiliated Enterprise” for the first time on the
basis of the audited annual report 2007 if

(a) neither a cause for termination pursuant to Clause 20 nor an “Impending Event of
Default” exists or would result from the corresponding payment;

(b) the “Equity Resources Quota” is no less than 30 % or will not drop below 30 % as a
result of said payments and

(c) the “Debt Service Coverage Level” will not fall short of 1.3 or as a result of the
said payments .

Interest payments to shareholders loans/loans granted by the “Sponsors” may not exceed
the standard market maximum.

In case of a different repayment procedure, the “Banks” and the “Guarantors” have to give
their written consent.

 

 

	19.1.36	 	To make disbursements of dividends only from the “Surplus Cashflow” and only to a maximum
amount equivalent the the net profit produced by the “Borrower” in the respective accumulated
fiscal year, in each case based on the audited annual report “Surplus Cashflow”, for the first
time for fiscal year 2007 and only if

(a) neither a cause for termination pursuant to Clause 20 nor an “Impending Event of
Default” exists or would result from the corresponding payment;

(b) the “Equity Resources Quota” is no less than 30 % or will not drop below 30 % as a
result of said payments and

(c) the “Debt Service Coverage Level” does no fall below 1:3:1 or will not fall short of
1.3 as a result of the said payments.

In case of a different repayment procedure, the “Banks” and the “Guarantors” have to give
their written consent

	19.1.37	 	Not to make any “Material and Capital Investments” with the exception of “Permitted
Material and Capital Investments”;
	 
	19.1.38	 	not execute the purchase option (First Solar purchase option) set forth in the “5N
Contract”, Clause 2.11 (b) without the prior written consent of the “Banks” and “Guarantors”.
	 
	20. 	 	 Event of Default
	 
	20.1	 	The “Banks” are entitled to terminate this Facility Agreement if one of the following
circumstances occurs and the additional preconditions in (i) and (ii) as set forth in Clause
20.2 exists:
	 
	20.1.1	 	the “Borrower” or a “Sponsor” does not comply with its payment obligation under one of the
“Contract Documents” when due;
	 
	20.1.2	 	proceeds from the “Loans” are used in a manner other than the purpose foreseen for the
respective “Loan” in Clause 3, or the achievement of the intended use of the funds is
precluded;
	 
	20.1.3	 	one of the representations and warranties made in Clause 16 (Representations and Warranties)
turns out to have been incorrect from the very beginning or becomes subsequently incorrect or
the “Borrower” cannot make a representation and warranty at the point in time contemplated in
Clause 16.2 of this Facility Agreement;
	 
	20.1.4	 	the “Borrower” does not comply with a covenant or condition under Clause 19 (Covenants and
Conditions) or any other condition or covenant under the “Contract Documents” and this results
in a “Material Adverse Change”;
	 
	20.1.5	 	the “Borrower” does not comply with a covenant or condition under Clause 13 (Accounts),
Clause17 (Obligations to provide Information) or Clause 18

 

 

	 	 	(Key Financial Figures) or any other obligation or condition under the “Contract
Documents”;
	 
	20.1.6	 	a “Sponsor” does not comply with an obligation under the “Contract Documents” or “FS GmbH”
fails to meet one of its obligations stipulated in the draft “Security Contracts” attached
hereto as Annex 24b (Contract on the Assignment of Entitlements from Purchase Agreements) and
Annex 18a (Contract on the Pledging of an Account);
	 
	20.1.7	 	a declaration made by the “Borrower” or a “Sponsor” which is considered fundamental by the
“Banks” for granting the “Loans” or information provided by the “Borrower” or a “Sponsor”
turns out to be wrong, misleading or incomplete;
	 
	20.1.8	 	insolvency proceedings or comparable proceedings under the respective applicable system of
law are commenced over the assets of the “Borrower” or a “Sponsor” or one of these companies
seizes to make its payments or commences out of court negotiations on extending payment terms
with its creditors or is over-indebted;
	 
	20.1.9	 	liquidation proceedings are resolved or initiated with regard to the “Borrower” or a
“Sponsor” or one of these companies ceases to conduct its business;
	 
	20.1.10	 	insolvency proceedings or comparable proceedings under the respectively applicable system
of law are applied for or commenced over the assets of one or more of the contracting parties
of the “Borrower” under the “Project Contracts” or the liquidation of such a contracting party
is resolved or initiated and results in “Material Adverse Change”;
	 
	20.1.11	 	the “Borrower” or the “Sponsors” give up on the “Project” or change it fundamentally;
	 
	20.1.12	 	a “Security” is not validly established in a binding and enforceable manner or its legal
validity, binding nature and enforceability is disputed by the respective party obliged under
the “Security” or the realization of a “Security” is precluded or endangered or the value of a
“Security” is reduced;
	 
	20.1.13	 	one or more “Project Agreements” are or become completely or partially invalid or are
terminated prematurely or amended and this leads to a “Material Adverse Change”;
	 
	20.1.14	 	a performance default under a “Project Contract” occurs which leads to a “Material Adverse
Change”;
	 
	20.1.15	 	the “Project” is delayed for a period of more than three months compared to the “Schedule”
and this delay is confirmed by the “Project Appraiser”;
	 
	20.1.16	 	a “Permit” required for the “Project” at the relevant point in time or for the respective
business operations of the “Borrower” is not granted at all or not granted in a timely manner
or is granted with modifications, conditions,

 

 

	 	 	deadlines or imposed terms or is completely or partially withdrawn or amended and this
event or the action results in a “Material Adverse Change”;
	 
	20.1.17	 	the “Subsidy Order”, the “Deficiency Guarantee” or the “EU Decision” are cancelled, amended
or withdrawn;
	 
	20.1.18	 	the “Borrower” is in default with an undisputed payment obligation (except for payment
obligations under the “Contract Documents”) towards a third party in an amount of more than
EUR 100,000 or a “Sponsor” is in default with an undisputed payment obligation (except for
payment obligations under the “Contract Documents”) in favor of third parties in a total of
more than EUR 500,000;
	 
	20.1.19	 	proceedings before a court, an arbitral tribunal or an administrative authority are
commenced against the “Borrower” or a “Sponsor” which if decided against the respective party
would lead to a “Material Adverse Change” unless the “Borrower” or the “Sponsor” demonstrates
without undue delay to the satisfaction of the “Agent” that these proceedings are an abuse of
right, inadmissible or unfounded or can be avoided by other measures. A “Material Adverse
Change” in the context of this Clause 20.1.9 exists especially if the amount in controversy of
all pending legal disputes exceeds in the aggregate for each “Borrower” or “Sponsor” EUR
2,000,000;
	 
	20.1.20	 	a “Material Adverse Change” occurs; or
	 
	20.1.21	 	the “Shareholders” resolve a reduction of registered capital and distribution of the amount
of the reduction.
	 
	20.2	 	If there is an event of default, the “Agent” in favor of the “Banks” is entitled,

	 	(a)	 	to completely or partially terminate with immediate effect the “Loans”
which have not yet been drawn down or which have been used and/or
	 
	 	(b)	 	to demand immediate payment of all or part of the outstanding amounts of
the “Loans” together with the respective accrued interest and all other amounts to
be paid under this Facility Agreement and/or
	 
	 	(c)	 	to realize the “Securities”
	 
	 	and especially 
	 
	 	(i)	 	in the case of an event of default under Clause 20.1.1, if the default in
payment completely or partially continues to exist after the expiration of five
“Banking Days” since the date of a payment demand by the “Agent” to the respective
party owing the payment, and
	 
	 	(ii)	 	in all other cases of Clause 20.1 and in which the type of event of
default permits a cure by the respective “Borrower” or the respective “Sponsor”, if
the event of default completely or partially continues to exist after expiration of
20 “Banking Days” since the date of a notice

 

 

	 	 	 	from the “Agent” to the party about the existence of the event of default, and
	 
	 	(iii)	 	in all other cases of Clause 20.1 and in which the type of event of
default permits a cure by the respective “Borrower” or the respective “Sponsor”,
immediately after the occurrence of the respective termination cause whereby the
“Banks” are obliged to prove that it was impossible to cure the respective
termination cause.

	21. 	 	 Agents and Banks
	 
	21.1	 	The leadership of the banking syndicate is the responsibility of the “Agent”. In the course
of leading the syndicate, the “Agent” will make all decisions required for a proper
administration of the credit relationship in the normal course of business independently
according to its reasonable discretion unless expressly provided otherwise in this Facility
Agreement.
	 
	21.2	 	Each “Bank” hereby grants power of attorney to the “Agent” to represent it towards the
“Borrower”, the “Sponsors” and third parties in connection with the “Loans” in the context of
the provisions in the “Contract Documents”.
	 
	21.3	 	The “Agent” is not authorized without the prior written consent of the respective “Bank” to
file a lawsuit in the name of the “Bank” or commence any other court proceedings in the name
of the “Bank”.
	 
	21.4	 	The “Banks” hereby appoint the “Agent” as their “Security Agent” and authorize the “Agent” as
such to exercise the rights and powers of attorney and make the discretionary decisions which
the “Security Agent” is responsible for under the “Contract Documents”. The provisions in this
Clause 21 relating to the “Agent” apply accordingly for the “Security Agent”.
	 
	21.5	 	To the extent legally permissible, each “Bank” hereby releases the “Agent” from the
restrictions of “181 BGB with regard to the powers of attorney which are granted to the
“Agent” under the “Contract Documents”.
	 
	21.6	 	Notwithstanding the provisions contained in this Facility Agreement on the reporting
obligations, the “Agent” will forward to the “Banks” all material information and notices
which the “Agent” receives from one of the other parties to this Facility Agreement.
	 
	21.7	 	The “Agent” will represent the interests of the “Banks” with the care of a prudent
businessman. The liability of the “Agent” for actions or omissions in connection with the
“Contract Documents” is limited to intentional misconduct and gross negligence.
	 
	21.8	 	The “Agent” acts exclusively as the leader of the syndicate of the “Banks” when performing
its obligations under the “Contract Documents” and not as a representative or agent for the
“Borrower”. The “Agent” is not liable to the “Borrower” or the other “Banks” for the
performance of the obligations by the respective other party.

 

 

	21.9	 	As syndicate leader for the “Banks”, the “Agent” will act through a special unit which is
responsible for the leadership of the syndicate in connection with the “Contract Documents”.
This unit will be treated as independent from the other departments and working units of the
“Agent”. Knowledge in another department or working unit of the “Agent” can be treated as
confidential by these departments or working units and will not be attributed to the “Agent”
in its function as leader of the syndicate under the “Contract Documents”.
	 
	21.10	 	The “Agent” is not required

	 	(a)	 	to determine whether the “Borrower” or the “Sponsors” have complied with
their obligations under the “Contract Documents” or whether an event of default
exists or is threatening,
	 
	 	(b)	 	to examine the completeness and correctness of all notices under this
Facility Agreement,
	 
	 	(c)	 	to examine the possibility for the collect ability of any type of
payments of money which are or become due under the present Facility Agreement,
	 
	 	(d)	 	to examine the enforceability or value of the “Securities” or
	 
	 	(e)	 	to examine the legal validity, reasonableness or completeness of the
“Contract Documents”.

	21.11	 	Each “Bank” assures that it has independently examined the “Project” and the credit
worthiness of the “Borrower” without having relied on any examination by the “Agent”. Each
“Bank” is signing this Facility Agreement on the basis of its own independent examination and
will in the future base its decisions about actions or omissions under this Facility Agreement
on its own examination which it considers reasonable. Each “Bank” hereby confirms its
agreement with the “Contract Documents”.
	 
	21.12	 	Unless otherwise expressly stated, the “Agent” exercises the rights and authorities in
connection with the “Contract Documents” in accordance with the instructions of the “Majority
of Banks” and is not subject to any liability towards the “Banks” to the extent the “Agent”
complies with these instructions. The “Agent” has the right at any time to obtain the consent
of the “Banks” to a specific measure. An instruction by the “Majority of Banks” is not
required if there is an urgent situation.
	 
	21.13	 	Each “Bank” will compensate the “Agent” or indemnify the “Agent” against corresponding
liabilities upon the request of the “Agent” for all damages and expenses (including value
added tax) incurred in connection with the “Contract Documents” unless the respective damages
and expenses are the result of an intentional or grossly negligent violation of duties on the
part of the “Agent”. The individual “Banks” are liable proportionately according to their
respective “Quota”.

 

 

	21.14	 	If the “Agent” has not received any written notice from the “Borrower” or a “Bank” that a
payment will not be made to the “Agent” two “Banking Days” prior to the payments under this
Facility Agreement becoming due, the “Agent” can assume that the payment will be made on the
due date. The “Agent” is entitled, but not required to pay the corresponding amount to the
“Borrower” and/or the “Banks”. If it turns out on the due date that the payment was in fact
not rendered, the respective recipient of the payment will repay this amount together with the
refinancing costs of the “Agent” to the “Agent” without undue delay upon its request.
	 
	21.15	 	The syndicate relationship between the “Agent” and the “Banks” end only after complete
satisfaction of all claims under this Facility Agreement. To the extent that “Securities” are
realized, the syndicate relationship only ends upon conclusion of the realization and/or the
distribution of any proceeds.
	 
	21.16	 	During the course of the syndicate relationship, regular notice of termination of the
syndicate relationship is excluded; the right to terminate for just cause remains unaffected.
If a “Bank” terminates its participation for just cause or leaves the syndicate for other
reasons, the syndicate relationship will be continued among the remaining “Banks”.
	 
	 	 	If the “Agent” leaves the syndicate relationship, the remaining “Banks” will assign the
leadership of the syndicate under this Facility Agreement to one of the other “Banks”
with a “Majority of the Banks”.
	 
	21.17	 	The “Agent” can designate a new branch or branch office in the European Union to the
“Borrower” and the “Banks” from which the “Agent” will perform its obligations under this
Facility Agreement. The law applicable to this Facility Agreement remains unaffected by this.
	 
	21.18	 	To the extent that the “Agent” is indemnified against liability pursuant to this Clause 21,
this indemnity only applies in the relationship between the “Agent” and the “Banks”. The
liability of the “Borrower” is not affected by this.
	 
	22. 	 	 Resignation and Removal of the “Agent”
	 
	22.1	 	The “Agent” can withdraw at any time from its appointment under this Facility Agreement by
written notice to the other Parties to this Facility Agreement.
	 
	 	 	The “Agent” can be removed by a resolution of the “Majority of Banks” from its duties
under this Facility Agreement by written notice given to the “Borrower” and the “Agent”.
	 
	 	 	The withdrawal or the removal takes effect upon notice about the appointment of a
successor pursuant to Clause 22.3.
	 
	 	 	The provisions of this Clause 22 pertaining to the “Agent” shall also apply to the
“Security Agent”.

 

 

	22.2	 	In the event of a withdrawal or the removal of the “Agent”, the “Majority of Banks” is
entitled on costs of the “Banks” to appoint a successor for the position of “Agent” with the
agreement of the “Borrower.” If such a successor has not been appointed within 30 “Banking
Days” after the notice about the withdrawal or the removal, the “Agent” is entitled to
designate another corresponding financial institution as its successor upon agreement with the
“Borrower” which has at least a rating of “A” issued by Standard & Poor’s Ratings Groups.
	 
	22.3	 	The acceptance of the appointment will be notified to the “Agent” by the “Bank” appointed by
the “Majority of Banks” for this purpose.
	 
	22.4	 	After the notice has been given, the successor will succeed the “Agent” and will receive all
rights, authorities, priority rights and obligations of its predecessor. The “Agent” which has
withdrawn or been removed from its function will take all necessary action in order to cause
the succession to be valid. The “Agent” will then be released from its obligations under this
Facility Agreement, whereby the indemnity in Clause 21 (Agents and Banks) with regard to such
acts or omissions which the “Agent” performed in its function as “Agent” will continue to
apply.
	 
	23. 	 	 Sharing Clause
	 
	23.1	 	If a “Bank” has received or collected at any time an amount relating to its participation in
the “Loans”, which amount exceeds the amount this “Bank” should have received from the “Agent”
if a distribution had taken place pursuant to the procedure set forth in Clause 14.3 and
Clause 14.4 (the “Excess Amount”) at any point in time, then this “Bank” must immediately
inform the “Agent” about this and must pay the “Excess Amount” to the “Agent” within three
“Banking Days” after this notice.
	 
	 	 	The “Agent” will then distribute the “Excess Amount” to the “Banks” (except for that
“Bank” which received the “Excess Amount”) to that these obtain satisfaction
proportionately according to their “Quota” and pursuant to Clause 14.3 and Clause 14.4.
	 
	 	 	The “Banks” will adjust the liabilities of the “Borrower” corresponding to the
distribution of the “Excess Amount” among them. If the “Excess Amount” is subsequently
completely or partially repaid to the “Borrower” by the “Bank” which had originally
received the “Excess Amount”, each of the “Banks” will forward the share in the “Excess
Amount” which it had received from the “Agent” to the “Agent” so that it can be repaid to
the “Bank” which is required to make the repayment.
	 
	23.2	 	A “Bank” is not required to surrender the “Excess Amount” if it has been awarded this amount
in the context of court proceedings which the other “Banks” did not join although they had the
opportunity to do so.
	 
	23.3	 	The right of each “Bank” to engage in banking transactions outside of this Facility Agreement
with the “Borrower” or with affiliated enterprises within

 

 

	 	 	the meaning of § 15 German Stock Companies Act (Aktiengesetz) remains unaffected.
	 
	24. 	 	 Fees
	 
	 	 	The “Borrower” pays
	 
	24.1	 	a one-time processing fee pursuant to the “Fee Letter” to the “Agent” upon its request;
	 
	24.2	 	an administrative fee pursuant to the “Fee Letter” annually on each 30 June to the “Agent”
upon its request;
	 
	24.3	 	a commitment fee in the amount of 0.6 % annually of the nominal amount of the “Loan” which
has not been drawn down to the “Agent” which will be forwarded to the “Banks”. The commitment
fee is calculated by the “Agent” as of the date on which this Facility Agreement is signed.
	 
	 	 	The commitment fee is payable in arrears on each 31.03, 30.06, 30.09 and 30.12 of each
year upon request of the “Agent”;
	 
	24.4	 	a Waiver Fee in the amount of EUR 2,500 per “Bank” and EUR 5,000 for the “Agent” to the
“Agent” for proportionate allocation to the “Banks” for each amendment to the contract or
declaration of waiver made on the request of the “Borrower”;
	 
	24.5	 	a surety compensation to the “Guarantors” in the amount of currently 0.8 % annually on the
“Surety Amount” to be determined pursuant to Clause 24.6. The surety compensation is first due
upon handing over the surety document and is to be paid on each 01.04 and 01.10 of each
calendar year and at the last time for the calendar year in which the surety document is
returned as no longer being needed or in which the “Agent” has submitted the loss report to
“PwC” after a claim has been asserted against the “Guarantors”.
	 
	 	 	Payment of the surety compensation must be evidenced to the “Agent” in each case without
undue delay.
	 
	24.6	 	The “Surety Amount” in the calendar year 2006 is EUR 64,035,200 and is reduced for the “Term
Loan” by the repayment installments made and for the “Revolving Loan” from 30 June 2010 by
13.33 percentage points semi-annually.
	 
	25 	 	 Third Party Costs and Disbursements 
	 
	25.1	 	The “Borrower” bears all adequate external costs and other expenses which the “Agent” or the
“Banks” incur in connection with the drafting, the conclusion or the amendment of the
“Contract Documents”, especially for retaining external consultants and attorneys and/or for
the activities of notaries.

 

 

	25.2	 	The “Borrower” bears all costs and disbursements, which the “Agent” and/or a “Bank” incur in
connection with maintaining and/or enforcing the rights under the “Contract Documents”.
	 
	25.3	 	The “Agent” receives compensation in the amount of EUR 500 for each confirmation of account
balances prepared at the request of the “Borrower” or its accountants.
	 
	25.4.	 	The “Borrower” will reimburse each of the “Banks” the costs they incur in the course of an
official audit resulting from the activities of the “Borrower” in connection with this
Facility Agreement.
	 
	 	 	Upon the “Agent’s” request, the “Borrower” will reimburse the “Guarantor” for the costs
of an audit in accordance with Clauses 17 and 18 of the “General Terms and Conditions for
the Assumption of Guarantees by the Federal Republic of Germany (the Bund) and States
issuing Parallel Guarantees"(“Allgemeinen Bestimmungen für Bürgschaftsübernahmen durch
die Bundesrepublik Deutschalnd (Bund) und parallel bürgender Bundesländer”).
	 
	26. 	 	 Substitute Performance
	 
	 	 	The “Borrower” is obligated to reimburse each “Bank” for those losses and costs which are
incurred as a result of the “Bank” having refinanced a “Drawdown” requested by a
“Borrower” without being able to pay out this amount because the preconditions
established in this Facility Agreement for the “Drawdown” have been completely or
partially not fulfilled or are no longer fulfilled.
	 
	27. 	 	 Assignments and Transfers
	 
	27.1	 	The “Borrower” is not permitted to assign rights and claims under the “Contract Documents” to
third parties without the prior written consent of the “Agent”.
	 
	27.2	 	A “Bank” can completely or partially transfer the economic risk of granting the “Loans” to
third parties; this can, for example, take place by way of credit derivatives, pledges,
assignment of the loan claims, transfers of contract, including with all relevant security or
by loan sub-participations.
	 
	 	 	A third party within the meaning of this provision can only be a member of the European
system of central banks, a credit institution, a financial services institution, a
financial enterprise, a pension organization [Versorgungswerk/Pensionskasse] or a capital
investment company which is subject to supervision by the Federal Agency for Supervision
of Financial Services [Bundesanstalt für Finanzdienstleistungsaufsicht] or another state
supervisory authority or a comparable foreign supervisory authority as well as a single
purpose company which is required in order to structure the transfer of the risk.

 

 

	27.3	 	A “Transfer” of rights and claims is only permissible if the amount to be transferred is at
least EUR 5,000,000. The amount to be transferred is to be allocated proportionately to the
already drawn down portion of the “Loans” and the portion of the “Loans” of the “Old Bank”
which has not yet been paid out.
	 
	27.4	 	The “Transfer” needs the consent of the “Borrower”. “Borrower’s” consent to the “Transfer”
shall not be required in the event of an “Impending Cause to Terminate” or in the event that a
cause to terminate pursuant to Clause 20.1 of this Facility Agreement should arise.
	 
	 	 	The “Borrower” shall give its consent to the “Transfer”, if the “New Bank” is a bank or a
third party which has at least a rating of “A” issued by Standard & Poor’s Ratings Groups
or a similar rating issued by another rating agency.
	 
	27.5	 	The “Transfer” takes effect upon countersignature by the “Agent” on the transfer contract
which contains at least the clauses outlined in the form of Annex 10 (Transfer Agreement).
	 
	 	 	The “Agent” shall inform the “Borrower” regarding the taking effect of the “Transfer”.
	 
	27.6	 	Each “Transfer” requires the “New Bank” to pay a fee in the amount of EUR 5,000 to the
“Agent” which is due upon the “Transfer” taking effect.
	 
	27.7	 	Upon the “Transfer” taking effect, the “New Bank” will become a “Bank” within the meaning of
this Facility Agreement. The “New Bank” will pay the “Old Bank” the amount set forth in the
Transfer Agreement pursuant to Annex 10 (Transfer Agreement) on the date set forth there.
	 
	27.8	 	The “Borrower”, “FS GmbH” and “FS Holdings” will use their best efforts to support the
“Banks” in their actions pursuant to Clause 27.2 in order to secure the success of these
measures.
	 
	28. 	 	Confidentiality
	 
	28.1	 	The “Agent” and the “Banks” will maintain confidentiality about all written or oral
information provided to them by the “Borrower”, “FS GmbH” and “FS Holdings”.
	 
	28.2	 	It does not constitute a violation of this obligation of confidentiality if information is
forwarded to

	 	(a)	 	third parties within the meaning of Clause 27.2 of this Facility
Agreement in the context of taking the measures contemplated in Clause 27.2 if the
recipient is required to treat the information as confidential,
	 
	 	(b)	 	members of management bodies, agents, attorneys, accountants, rating
agencies or other consultants of the “Agent” or of one of the “Banks” if the
recipient is required to treat the information as confidential based on a written
confidentiality agreement or

 

 

	 	(c)	 	public authorities or courts on the basis of a corresponding order,
mandatory legal provisions or in the context of court proceedings.

	29. 	 	 Rebuttable Presumptions 
	 
	 	 	All confirmations, determinations and bookings by the “Agent” or a “Bank” with regard to
an interest rate or an amount of money in the context of the “Contract Documents”
establishes the rebuttable presumption that it is correct unless there is an obvious
error.
	 
	30. 	 	 Statements pursuant to § 8 of the Money Laundering Act (Geldwäschegesetz)
	 
	 	 	The “Borrower” declares by their countersignature under this Facility Agreement that they
have acted for their own account with regard to the drawing of the “Loans”.
	 
	31. 	 	 Requirement of Written Form, Amendments to the Facility Agreement
	 
	31.1	 	Each change or supplement to this Facility Agreement requires written form in order to be
valid to the extent that the law does not require a stricter form. This also applies to any
amendments to this clause on written form.
	 
	31.2	 	The “Agent” can agree on changes and supplements to this Facility Agreement and can waive the
exercise of rights or the compliance with obligations under this Facility Agreement with
regard to the “Borrower” in the name of the “Banks” with the prior consent of the “Majority of
Banks”.
	 
	31.3	 	The prior consent of all “Banks”, which the “Agent” will obtain, is required for

	 	(a)	 	each amendment of Clause 27.1 or this Clause 31.3;
	 
	 	(b)	 	extensions of time or other changes in dates for payment of interest or
principal;
	 
	 	(c)	 	an increase in the amount of the loan or a reduction of amounts payable
under this Facility Agreement;
	 
	 	(d)	 	a waiver of or other change in preconditions for drawing down under this
Facility Agreement;
	 
	 	(e)	 	the release of a “Security”;
	 
	 	(f)	 	an amendment to the event of default set forth in Clause 20.1;
	 
	 	(g)	 	an amendment to the definition of “Majority of Banks”; or
	 
	 	(h)	 	other measures to the extent that this is expressly set forth in this
Facility Agreement.

 

 

	32. 	 	 Exercise of Rights, Severability Clause
	 
	32.1	 	If the “Agent” and/or the “Banks” waive the exercise of rights under this Facility Agreement
in a specific case, this does not affect the assertion of other rights. A waiver by the
“Agent” or one of the “Banks” is only valid if it has been notified to the “Borrower” in
writing.
	 
	32.2	 	If a provision in this Facility Agreement is or becomes invalid or unenforceable, this does
not affect the other provisions. The invalid or unenforceable provision will be replaced by
another valid and enforceable provision which the Parties would have agreed to if they had
given thought upon conclusion of this Facility Agreement to the invalidity or the
unenforceability of the respective provision and which corresponds to the intent of the
Parties in light of the purpose of this Facility Agreement. The above provision applies
accordingly if this Facility Agreement does not cover a subject.
	 
	33. 	 	 Rights of Set-Off and Retention
	 
	 	 	A right of set-off and retention for the “Borrower” does not exist unless the claim of
the “Borrower” has been determined by a final judgment or if it is not disputed by either
the “Agent” or the “Banks”.
	 
	34. 	 	 Notices
	 
	 	 	Each notice under or in connection with this Facility Agreement should be issued in
writing and must be transmitted either personally or by mail, e-mail or by fax to the
following contact addresses:
	 
	 	 	To the “Borrower”:
	 
	 	 	First Solar Manufacturing GmbH

Marie-Curie-Str. 3

15236 Frankfurt (Oder)
	 
	 	 	Attn.: Bernhard Bischof

Tel.: 0335 52102-104

Fax.: 0335 52102-137

e-mail: bbischof@firstsolar.com
	 
	 	 	To “FS GmbH” and/or “FS Holdings”:
	 
	 	 	First Solar Holdings GmbH
	 
	 	 	Rheinstrasse 4N

 

 

		 	55116 Mainz
	 
	 	 	Attn.: Karlheinz Harz

Tel.: 06131-1443300

Fax.: 06131-144500

e-mail: kharz@firstsolar.com
	 
	 	 	To the “Agent”, the “Security Agent” and/or the “Banks”
	 
	 	 	IKB Deutsche Industriebank AG

Strukturierte Finanzierung

Transaktionsmanagement

Wilhelm-Bötzkes-Straße 1

40474 Düsseldorf

	 
	 	 	Attn.: Mr. Sven Dalkowski

Tel.: 0211-8221-3291

Fax.: 0211-8221-3591
	 
	 	 	Email: sven.dalkowski@ikb.de
	 
	 	 	Changes in the contact addresses must be notified to the “Agent” by giving two weeks
advanced notice. The “Agent” will inform the other Parties to this Facility Agreement
about the change without undue delay.
	 
	 	 	The change of a contact address to a foreign country requires the prior written consent
of the “Agent”.
	 
	35. 	 	 Jurisdiction, Applicable Law
	 
	35.1	 	Exclusive jurisdiction for all disputes under or in connection with this Facility Agreement
is Düsseldorf. This does not affect different mandatory statutory jurisdictions.
	 
	35.2	 	This Facility Agreement is subject to the laws of the Federal Republic of Germany.
	 
	36. 	 	 Provisions on Guarantors
	 
	 	 	The guarantee decision attached as Annex 6a (Decision on the approval of the deficiency
guarantees plus pertinent supplements) is an integral part of this Agreement. All
provisions and obligations to be imputed to the Facility Agreement in accordance with the
Guarantee Decision are herewith agreed upon, even if they are not separately indicated in
the Facility Agreement. In

 

 

	 	 	case of doubt and any contradictions to other provisions of the Facility Agreement, the
guarantee decision shall prevail.
	 
	 	 	As a supplement to the provisions contained in this Facility Agreement, the terms and
conditions for the “Deficiency Guarantee” including the “General Terms and Conditions for
Assuming Guarantors by the Federal Republic of Germany and Parallel Guarantors issued by
the States” (Allgemeinen Bestimmungen für Bürgschaftsübernahmen durch die Bundesrepublik
Deutschland (Bund) und parallel bürgender Bundesländer) pursuant to Annex 6b are
applicable.
	 
	 	 	The guarantors have the right to engage commissioned parties in the administration of the
“Deficiency Guarantees”.

	 	 	 
	Mainz, on

	 	Düsseldorf, on
	 
	 	 
	 
	 	 
	 

First Solar Manufacturing GmbH

	 	 

IKB Deutsche Industriebank AG

as “Agent” and in the name of the “Banks”

	 
	 	 
	 
	 	 
	Mainz, on

	 	Mainz, on
	 
	 	 
	 
	 	 
	 

First Solar GmbH

	 	 

First Solar Holdings GmbH

 

 

Annex 2

	1.	 	Confirmation of First Solar Inc. in regard to its obligations relating to the
“Facility Agreement”, in particular under the guarantee issued by it to secure the claims
under the “Facility Agreement” (Acknowledgement and Reaffirmation);
	 
	2.	 	Legal opinion of First Solar Inc.’s attorneys in light of the binding
“Verpflichtungserklärung USA I” (Sponsors Agreement) according to Attachment 9b to the
“Facility Agreement”;
	 
	3.	 	Legal Opinion of First Solar Inc.’s attorney in light of the “Verpflichtungserklärung
USA II” (Agreement and Undertaking) according to Attachment 9c of the “Facility
Agreement”;

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