Document:

EX-10.17

 

Exhibit 10.17

THIS [FORM OF] DIRECTOR AND OFFICER

INDEMNIFICATION AGREEMENT, dated as of [•] (this

“Agreement”), is made by and between First Solar, Inc., a

Delaware corporation (the “Company”), and [•] (“Indemnitee”).

RECITALS

     A. It is important to the Company to attract and retain as directors and officers the most
capable persons reasonably available.

     B. Indemnitee is a director and/or officer of the Company.

     C. Both the Company and Indemnitee recognize the increased risk of litigation and other claims
being asserted against directors and officers of companies in today’s environment.

     D. The Company’s Amended and Restated Certificate of Incorporation and By-laws (the
“Constituent Documents”) provide that the Company will indemnify its directors and officers to the
fullest extent permitted by law and will advances expenses in connection therewith, and
Indemnitee’s willingness to serve as a director and/or officer of the Company is based in part on
Indemnitee’s reliance on such provisions.

     E. In recognition of Indemnitee’s need for substantial protection against personal liability
in order to enhance Indemnitee’s continued service to the Company in an effective manner, in
recognition of Indemnitee’s reliance on the aforesaid provisions of the Constituent Documents and
to provide Indemnitee with express contractual indemnification (regardless of, among other things,
any amendment to or revocation of such provisions or any change in the composition of the Company’s
Board of Directors (the “Board”) or any acquisition or business combination transaction relating to
the Company), the Company wishes to provide in this Agreement for the indemnification of and the
advancement of Expenses (as defined in Section 1(b)) to Indemnitee as set forth in this Agreement
and, to the extent insurance is maintained, for the continued coverage of Indemnitee under the
Company’s directors’ and officers’ liability insurance policies.

     NOW, THEREFORE, the parties hereby agree as follows:

     1. Certain Definitions. In addition to terms defined elsewhere herein, the following
terms shall have the meanings ascribed to them below when used in this Agreement with initial
capital letters:

     (a) “Claim” means any threatened, pending or completed action, suit or proceeding, or
any inquiry or investigation, whether instituted, made or conducted by the

 

2

Company or any other party, including without limitation any governmental entity, that Indemnitee
determines might lead to the institution of any such action, suit or proceeding, whether civil,
criminal, administrative, arbitrative, investigative or other.

     (b) “Expenses” includes attorneys’ and experts’ fees, expenses and charges and all
other costs, expenses and obligations paid or incurred in connection with investigating, defending,
being a witness in or participating in (including on appeal), or preparing to defend, be a witness
in or participate in, any Claim.

     (c) “Indemnifiable Losses” means any and all Expenses, damages, losses, liabilities,
judgments, fines, penalties and amounts paid in settlement (including without limitation all
interest, assessments and other charges paid or payable in connection with or in respect of any of
the foregoing) (collectively, “Losses”) relating to, resulting from or arising out of any Claim by
reason of the fact that (i) Indemnitee is or was a director, officer, employee or agent of the
Company or (ii) Indemnitee is or was serving at the request of the Company as a director, officer,
employee or agent of another corporation, partnership, joint venture, trust or other enterprise.

     2. Service by Indemnitee. Indemnitee will serve and/or continue to servce as a
director and/or officer of the Company and/or in such other capacity with respect to the Company as
the Company may request, as the case may be, faithfully and to the best of Indemnitee’s ability so
long as Indemnitee is duly elected or appointed and until such time as Indemnitee is removed as
permitted by law or tenders a resignation in writing.

     3. Basic Indemnification Arrangement. The Company will indemnify and hold harmless
Indemnitee, to the fullest extent permitted by the laws of the State of Delaware in effect on the
date hereof or as such laws may from time to time hereafter be amended to increase the scope of
such permitted indemnification, against all Indemnifiable Losses relating to, resulting from or
arising out of any Claim. The failure by Indemnitee to notify the Company of such Claim will not
relieve the Company from any liability hereunder unless, and only to the extent that, the Company
did not otherwise learn of the Claim and such failure results in forfeiture by the Company of
substantial defenses, rights or insurance coverage. Except as provided in Section 19, however,
Indemnitee will not be entitled to indemnification pursuant to this Agreement in connection with
any Claim initiated by Indemnitee against the Company or any director or officer of the Company
unless the Company has joined in or consented to the initiation of such Claim. If so requested by
Indemnitee, the Company will advance within twenty business days of such request any and all
Expenses to Indemnitee which Indemnitee determines reasonably likely to be payable; provided,
however, that Indemnitee will return, without interest, any such advance which remains unspent at
the final conclusion of the Claim to which the advance related.

     4. Indemnification for Additional Expenses. Without limiting the generality or effect
of the foregoing, the Company will indemnify Indemnitee against and, if requested by Indemnitee,
will within twenty business days of such request advance to Indemnitee, any additional Expenses
paid or incurred by Indemnitee in connection with

 

3

any Claim asserted or brought by Indemnitee for (i) indemnification or advance payment of
Expenses by the Company under this Agreement or any other agreement or under any provision of the
Company’s Constituent Documents now or hereafter in effect relating to Claims for Indemnifiable
Losses and/or (ii) recovery under any directors’ and officers’ liability insurance policies
maintained by the Company, regardless of whether Indemnitee ultimately is determined to be entitled
to such indemnification, advance expense payment or insurance recovery, as the case may be.

     5. Partial Indemnity, Etc. If Indemnitee is entitled under any provision of this
Agreement to indemnification by the Company for some or a portion of any Indemnifiable Loss but not
for all of the total amount thereof, the Company will nevertheless indemnify Indemnitee for the
portion thereof to which Indemnitee is entitled. Moreover, notwithstanding any other provision of
this Agreement, to the extent that Indemnitee has been successful on the merits or otherwise in
defense of any or all Claims relating in whole or in part to an Indemnifiable Loss or in defense of
any issue or matter therein, including without limitation dismissal without prejudice, Indemnitee
will be indemnified against all Expenses incurred in connection therewith.

     6. No Other Presumption. For purposes of this Agreement, the termination of any Claim
by judgment, order, settlement (whether with or without court approval) or conviction, or upon a
plea of nolo contendere or its equivalent, will not create a presumption that Indemnitee did not
meet any particular standard of conduct or have any particular belief or that a court has
determined that indemnification is not permitted by applicable law.

     7. Non-Exclusivity, Etc. The rights of Indemnitee hereunder will be in addition to
any other rights Indemnitee may have under the Constituent Documents, or the substantive laws of
the Company’s jurisdiction of incorporation, any other contract or otherwise[, including
specifically the Employment Agreement between the Company and Indemnitee dated [•][and the Change
in Control Severance Agreement between the Company and the Indemnitee dated [•]] (collectively,
“Other Indemnity Provisions”); provided, however, that (i) to the extent that Indemnitee otherwise
would have any greater right to indemnification under any Other Indemnity Provision, Indemnitee
will be deemed to have such greater right hereunder and (ii) to the extent that any change is made
to any Other Indemnity Provision which permits any greater right to indemnification than that
provided under this Agreement as of the date hereof, Indemnitee will be deemed to have such greater
right hereunder. The Company will not adopt any amendment to any of the Constituent Documents the
effect of which would be to deny, diminish or encumber Indemnitee’s right to indemnification under
this Agreement or any Other Indemnity Provision.

     8. Liability Insurance and Funding. To the extent the Company maintains an insurance
policy or policies providing directors’ and officers’ liability insurance, Indemnitee will be
covered by such policy or policies, in accordance with its or their terms, to the maximum extent of
the coverage available for any director or officer of the Company. The Company may, but will not
be required to, create a trust fund, grant a security interest or use other means, including
without limitation a letter of credit,

 

4

to ensure the payment of such amounts as may be necessary to satisfy its obligations to
indemnify and advance expenses pursuant to this Agreement.

     9. Subrogation. In the event of payment under this Agreement, the Company will be
subrogated to the extent of such payment to all of the related rights of recovery of Indemnitee
against other persons or entities (other than Indemnitee’s successors). The Indemnitee will
execute all papers reasonably required to evidence such rights of recovery (all of Indemnitee’s
reasonable Expenses, including attorneys’ fees and charges, related thereto to be reimbursed by or,
at the option of Indemnitee, advanced by the Company).

     10. No Duplication of Payments. The Company will not be liable under this Agreement
to make any payment in connection with any Indemnifiable Loss made against Indemnitee to the extent
Indemnitee has otherwise actually received payment (net of Expenses incurred in connection
therewith) under any insurance policy, the Constituent Documents and Other Indemnity Provisions or
otherwise of the amounts otherwise indemnifiable hereunder.

     11. Defense of Claims. The Company will be entitled to participate in the defense of
any Claim or to assume the defense thereof, with counsel reasonably satisfactory to the Indemnitee;
provided, however, that in the event that (i) the use of counsel chosen by the Company to represent
Indemnitee would present such counsel with an actual or potential conflict, (ii) the named parties
in any such Claim (including any impleaded parties) include both the Company and Indemnitee and
Indemnitee shall conclude that there may be one or more legal defenses available to him or her that
are different from or in addition to those available to the Company, or (iii) any such
representation by the Company would be precluded under the applicable standards of professional
conduct then prevailing, then Indemnitee will be entitled to retain separate counsel (but not more
than one law firm plus, if applicable, local counsel in respect of any particular Claim) at the
Company’s expense. The Company will not, without the prior written consent of the Indemnitee,
effect any settlement of any threatened or pending Claim which the Indemnitee is or could have been
a party unless such settlement solely involves the payment of money and includes an unconditional
release of the Indemnitee from all liability on any claims that are the subject matter of such
Claim.

     12. Successors and Binding Agreement. (a) The Company will require any successor
(whether direct or indirect, by purchase, merger, consolidation, reorganization or otherwise) to
all or substantially all of the business or assets of the Company, by agreement in form and
substance satisfactory to Indemnitee and his or her counsel, expressly to assume and agree to
perform this Agreement in the same manner and to the same extent the Company would be required to
perform if no such succession had taken place. This Agreement will be binding upon and inure to
the benefit of the Company and any successor to the Company, including without limitation any
person acquiring directly or indirectly all or substantially all of the business or assets of the
Company whether by purchase, merger, consolidation, reorganization or otherwise (and such successor
will thereafter be deemed the “Company” for purposes of this Agreement), but will not otherwise be
assignable or delegatable by the Company.

 

5

     (b) This Agreement will inure to the benefit of and be enforceable by the Indemnitee’s
personal or legal representatives, executors, administrators, successors, heirs, distributees,
legatees and other successors.

     (c) This Agreement is personal in nature and neither of the parties hereto will, without the
consent of the other, assign or delegate this Agreement or any rights or obligations hereunder
except as expressly provided in Sections 12(a) and 12(b). Without limiting the generality or
effect of the foregoing, Indemnitee’s right to receive payments hereunder will not be assignable,
whether by pledge, creation of a security interest or otherwise, other than by a transfer by the
Indemnitee’s will or by the laws of descent and distribution, and, in the event of any attempted
assignment or transfer contrary to this Section 12(c), the Company will have no liability to pay
any amount so attempted to be assigned or transferred.

     13. Continuation of Indemnity. All agreements and obligations of the Company
contained herein shall continue during the period Indemnitee is a director and/or officer of the
Company or is serving at the request of the Company as a director, officer, employee or agent or
fiduciary of any other entity (including, but not limited to, another corporation, partnership,
joint venture or trust) of the Company and shall also continue after the period of such service
with respect to any possible claims based on the fact that Indemnitee was or had been a director
and/or officer of the Company or was or had been serving at the request of the Company as a
director, officer, employee or agent or fiduciary of any other entity (including, but not limited
to, another corporation, partnership, joint venture or trust).

     14. Notices. For all purposes of this Agreement, all communications, including
without limitation notices, consents, requests or approvals, required or permitted to be given
hereunder will be in writing and will be deemed to have been duly given when hand delivered or
dispatched by electronic facsimile transmission (with receipt thereof orally confirmed), or five
business days after having been mailed by United States registered or certified mail, return
receipt requested, postage prepaid or one business day after having been sent for next-day delivery
by a nationally recognized overnight courier service, addressed to the Company (to the attention of
the Secretary of the Company) and to the Indemnitee at the addresses shown on the signature page
hereto, or to such other address as any party may have furnished to the other in writing and in
accordance herewith, except that notices of changes of address will be effective only upon receipt.

     15. Governing Law. The validity, interpretation, construction and performance of this
Agreement will be governed by and construed in accordance with the substantive laws of the State of
Delaware, without giving effect to the principles of conflict of laws of such State. Each party
consents to non-exclusive jurisdiction of any Delaware state or federal court or any court in any
other jurisdiction in which a Claim is commenced by a third person for purposes of any action, suit
or proceeding hereunder, waives any objection to venue therein or any defense based on forum non
conveniens or similar theories and agrees that service of process may be effected in any such
action, suit or proceeding by notice given in accordance with Section 14.

 

6

     16. Validity. If any provision of this Agreement or the application of any provision
hereof to any person or circumstance is held invalid, unenforceable or otherwise illegal, the
remainder of this Agreement and the application of such provision to any other person or
circumstance will not be affected, and the provision so held to be invalid, unenforceable or
otherwise illegal will be reformed to the extent, and only to the extent, necessary to make it
enforceable, valid or legal.

     17. Miscellaneous. No provision of this Agreement may be waived, modified or
discharged unless such waiver, modification or discharge is agreed to in writing signed by
Indemnitee and the Company. No waiver by either party hereto at any time of any breach by the
other party hereto or compliance with any condition or provision of this Agreement to be performed
by such other party will be deemed a waiver of similar or dissimilar provisions or conditions at
the same or at any prior or subsequent time. No agreements or representations, oral or otherwise,
expressed or implied with respect to the subject matter hereof have been made by either party that
are not set forth expressly in this Agreement. References to Sections are to references to
Sections of this Agreement.

     18. Counterparts. This Agreement may be executed in one or more counterparts, each of
which will be deemed to be an original but all of which together will constitute one and the same
agreement.

     19. Legal Fees and Expenses. It is the intent of the Company that the Indemnitee not
be required to incur legal fees and or other Expenses associated with the interpretation,
enforcement or defense of Indemnitee’s rights under this Agreement by litigation or otherwise
because the cost and expense thereof would substantially detract from the benefits intended to be
extended to the Indemnitee hereunder. Accordingly, without limiting the generality or effect of
any other provision hereof, if it should appear to the Indemnitee that the Company has failed to
comply with any of its obligations under this Agreement or in the event that the Company or any
other person takes or threatens to take any action to declare this Agreement void or unenforceable,
or institutes any litigation or other action or proceeding designed to deny, or to recover from,
the Indemnitee the benefits provided or intended to be provided to the Indemnitee hereunder, the
Company irrevocably authorizes the Indemnitee from time to time to retain counsel of Indemnitee’s
choice, at the expense of the Company as hereafter provided, to advise and represent the Indemnitee
in connection with any such interpretation, enforcement or defense, including without limitation
the initiation or defense of any litigation or other legal action, whether by or against the
Company or any director, officer, stockholder or other person affiliated with the Company, in any
jurisdiction. Notwithstanding any existing or prior attorney-client relationship between the
Company and such counsel, the Company irrevocably consents to the Indemnitee’s entering into an
attorney-client relationship with such counsel, and in that connection the Company and the
Indemnitee agree that a confidential relationship shall exist between the Indemnitee and such
counsel. Without respect to whether the Indemnitee prevails, in whole or in part, in connection
with any of the foregoing, the Company will pay and be solely financially responsible for any and
all attorneys’ and related fees and expenses incurred by the Indemnitee in connection with any of
the foregoing.

 

7

     20. Certain Interpretive Matters. No provision of this Agreement will be interpreted
in favor of, or against, either of the parties hereto by reason of the extent to which any such
party or its counsel participated in the drafting thereof or by reason of the extent to which any
such provision is inconsistent with any prior draft hereof or thereof.

     IN WITNESS WHEREOF, Indemnitee has executed and the Company has caused its duly authorized
representative to execute this Agreement as of the date first above written.

	 	 	 	 	 	 	 
	 	 	FIRST SOLAR, INC.
	 	 	4050 East Cotton Center Blvd.
	 	 	Building 6, Suite 68
	 	 	Phoenix, Arizona 85040
	 

	 	 	 	by	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:
	 

	 	 	 	 	 	Title:
	 
	 	 	 	 	 	 
	 	 	INDEMNITEE
	 
	 	 	 	 	 	 
	 

	 	 	 	by	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:
	 

	 	 	 	 	 	Title:EX-10.18

 

Exhibit 10.18

AISLIC Policy No. 4762498

Declarations

A Member

Company

Of American

International

Group, Inc.

AMERICAN INTERNATIONAL

SPECIALTY LINES INSURANCE COMPANY

A Capital Stock Insurance Company

70 Pine Street

New York, New York 10270

THIS INSURER IS NOT LICENSED IN THE STATE OF NEW YORK

AND IS NOT SUBJECT TO ITS SUPERVISION.

NOTICE: THIS POLICY DOES NOT CONTAIN RISK TRANSFER AND DOES NOT QUALIFY FOR INSURANCE ACCOUNTING
TREATMENT. THE NAMED INSURED SHOULD CONSULT WITH ITS ACCOUNTING ADVISORS ON THE PROPER ACCOUNTING
TREATMENT FOR THIS POLICY.

NOTICE: PURSUANT TO ARIZONA REVISED STATUTES S 20-401.01, SUBSECTION B, PARAGRAPH
1, THIS POLICY IS ISSUED BY AN INSURER THAT DOES NOT POSSESS A CERTIFICATE OF
AUTHORITY FROM THE DIRECTOR OF THE ARIZONA DEPARTMENT OF INSURANCE. IF THE INSURER THAT ISSUED
THIS POLICY BECOMES INSOLVENT, INSUREDS OR CLAIMANTS WILL NOT BE ELIGIBLE FOR INSURANCE GUARANTY
FUND PROTECTION PURSUANT TO ARIZONA REVISED STATUTES TITLE 20.

NOTICE: THIS IS A INDEMNIFICATION POLICY. THIS POLICY INDEMNIFIES THE NAMED INSURED ONLY AND WILL
NOT MAKE PAYMENTS TO ANY THIRD PARTY. THIS POLICY IS SUBJECT TO COMMUTATION AT THE DISCRETION OF
THE NAMED INSURED AT ANY TIME AFTER DECEMBER 31, 2027 AND ON OR BEFORE DECEMBER 31, 2045. IN THE
EVENT OF COMMUTATION, THE INSURER WILL NOT HAVE ANY FURTHER LIABILITY UNDER THIS POLICY TO THE
NAMED INSURED OR ANY OTHER PARTY REGARDLESS OF THE DATE OF OCCURRENCE OF A CLAIM OR EVENT GIVING
RISE TO A CLAIM. IF NOT PREVIOUSLY COMMUTED, THIS POLICY TERMINATES ON DECEMBER 31, 2045 AND THE
INSURER WILL NOT HAVE ANY FURTHER LIABILITY UNDER THIS POLICY TO THE NAMED INSURED OR ANY OTHER
PARTY.

NOTICE: THIS POLICY CONTAINS CERTAIN PROVISIONS AND REQUIREMENTS UNIQUE TO IT AND MAY BE DIFFERENT
FROM OTHER POLICIES THE NAMED INSURED MAY HAVE PREVIOUSLY PURCHASED. PLEASE READ THIS POLICY
CAREFULLY.

RECLAMATION AND RECYCLING INDEMNIFICATION POLICY

Policy Number: 4762498

DECLARATIONS

	 	 	 
	Item 1.

	 	Named Insured & Mailing Address:
	 
	 	 
	 

	 	First Solar Holdings, LLC
	 

	 	4050 E. Cotton Center #6-68
	 

	 	Phoenix, AZ 85040
	 
	 	 
	Item 2.

	 	Coverage Period: From 12:01 a.m. at the Named Insured’s Mailing Address on January
1, 2003 to 11:59 p.m. at the Named Insured’s Mailing Address on December 31, 2007.

- 1 -

 

AISLIC Policy No. 4762498

Declarations

	 	 	 
	Item 3.

	 	Effective Date: June 1, 2005
	 
	 	 
	Item 4.

	 	Reporting Periods:
	 
	 	 
	 

	 	For Covered Products sold from January 1, 2003 to December 31, 2003 (the “2003
Coverage Year”): 
 From 12:01 a.m., on January 1, 2023 at the Named Insured’s location to 11:59 p.m.
on December 31, 2038.

	 
	 	 
	 

	 	For Covered Products sold from January 1, 2004 to December 31, 2004 (the “2004
Coverage Year”): 

From 12:01 a.m., on January 1, 2024 at the Named Insured’s location to 11:59 p.m.
on December 31, 2039.

	 
	 	 
	 

	 	For Covered Products sold from January 1, 2005 to December 31, 2005 (the “2005
Coverage Year”): 

From 12:01 a.m., on January 1, 2025 at the Named Insured’s location to 11:59 p.m.
on December 31, 2040.

	 
	 	 
	 

	 	For Covered Products sold from January 1, 2006 to December 31, 2006 (the “2006
Coverage Year”): 

From 12:01 a.m., on January 1, 2026 at the Named Insured’s location to 11:59 p.m.
on December 31, 2041.

	 
	 	 
	 

	 	For Covered Products sold from January 1, 2007 to December 31, 2007 (the “2007
Coverage Year”): 

From 12:00 a.m., on January 1, 2027 at the Named Insured’s location to 11:59 p.m.
on December 31, 2042.

	 
	 	 
	Item 5.

	 	Exposure Units:

	 	 	 	 	 
	Period	 	Projected Modules Sold	 	Actual Modules Sold
	2003 Coverage 

Year

	 	N/A
	 	43,766 
	2004 Coverage 

Year

	 	N/A
	 	120,241 
	2005 Coverage 

Year

	 	333,000 
	 	To be reported by the Named
Insured in writing on or before
March 1, 2006.
	2006 Coverage 

Year

	 	To be reported by the Named
Insured in writing on or before
March 1, 2006
	 	To be reported by the Named
Insured in writing on or before
March 1, 2007.
	2007 Coverage 

Year

	 	To be reported by the Named
Insured in writing on or before
March 1, 2007
	 	To be reported by the Named
Insured in writing on or before
March 1, 2008.

	 	 	 
	Item 6.

	 	Policy Limits:
	 
	 	 
	 

	 	Per Module Limit:   $7
	 
	 	 
	 

	 	Coverage Year Limits:
	 

	 	2003 Coverage Year Limit:      $306,362

- 2 -

 

AISLIC Policy No. 4762498

Declarations

	 	 	 
	 

	 	2004 Coverage Year Limit:       $841,687
	 

	 	2005 Coverage Year Limit:       $2,331,000 as of the Effective Date
	 

	 	2006 Coverage Year Limit:       To Be Determined as set forth in Section IV of the Policy
	 

	 	2007 Coverage Year Limit:       To Be Determined as set forth in Section IV of the Policy
	 
	 	 
	 

	 	Policy Aggregate Limit: $3,479,049 as of the Effective Date
	 
	 	 
	 

	 	Each Coverage Year Limit is calculated as: (the reported Actual Modules Sold multiplied
by Per Module Limit). Subject to the terms set forth in Item 5 of the Declarations, If
Actual Modules Sold is not yet available, Projected Modules Sold shall be used in the
calculation of Coverage Year Limit, and the Coverage Year Limits shall only increase
subject to the Insurer’s receipt of Additional Deposit Due To Audit as set forth in
Section IV of the Policy. Coverage Year Limit for future years that are not yet
determined shall only be provided upon the Named Insured payment of Additional
Deposit pursuant to Section IV of the Policy.
	 
	 	 
	 

	 	The Policy Aggregate Limit shall equal the sum of all Coverage Year Limits and is the
maximum amount payable for Losses and all other costs covered by the Policy.
	 
	 	 
	Item 7.

	 	Administrative Fee:
	 

	 	$200,000      payable on or before the Effective Date
	 

	 	$150,000      payable on or before May 1, 2006
	 

	 	$100,000      payable on or before May 1, 2007
	 
	 	 
	 

	 	The Administrative Fee is fully earned upon receipt and non-refundable. The
Administrative Fee does not include any applicable premium taxes, other surcharges or
taxes, or intermediary compensation, which may apply separately and which are the
sole responsibility of the Named Insured or its Surplus Lines Broker.
	 
	 	 
	Item 8.

	 	Deposit:           $1,234,000.
	 
	 	 
	 

	 	The Deposit is payable in full on or before the Effective Date. The Deposit does not
include any applicable premium taxes, other surcharges or taxes, or intermediary
compensation, which may apply separately. Any such taxes, charges, assessments or
expenses, if applicable, are the sole responsibility of the Named Insured and/or its
Surplus Line Broker.
	 
	 	 
	Item 9.

	 	Terrorism Coverage: Named Insured has been offered coverage for losses arising out
of an Act of Terrorism as defined in the Terrorism Risk Insurance Act of 2002 for the
amount set forth in Schedule A. The Named Insured rejected such coverage and
executed the Policyholder Disclosure Statement set forth as Schedule A.
	 
	 	 
	Item 10.

	 	Surplus Line Broker:
	 
	 	 
	 

	 	Brown & Brown of Arizona Inc.
	 

	 	2800 North Central Avenue #1600
	 

	 	Phoenix, AZ 85004
	 

	 	Surplus Lines License Number: 29961

- 3 -

 

AISLIC Policy No. 4762498

Declarations

	 	 	 	 	 
	 	AMERICAN INTERNATIONAL SPECIALTY 

LINES INSURANCE COMPANY

 	 
	 	By:  	 	 
	 	 	Authorized Representative 	 
	 	 	 	 
	 

Signed at New York, New York on

                                             , 2005

- 4 -

 

AISLIC Policy No. 4762498

A Member

Company

Of American

International

Group, Inc.

AMERICAN INTERNATIONAL

SPECIALTY LINES INSURANCE COMPANY

A Capital Stock Insurance Company

70 Pine Street

New York, New York 10270

THIS INSURER IS NOT LICENSED IN THE STATE OF NEW YORK

AND IS NOT SUBJECT TO ITS SUPERVISION.

NOTICE: THIS POLICY DOES NOT CONTAIN RISK TRANSFER AND DOES NOT QUALIFY FOR INSURANCE ACCOUNTING
TREATMENT. THE NAMED INSURED SHOULD CONSULT WITH ITS ACCOUNTING ADVISORS ON THE PROPER ACCOUNTING
TREATMENT FOR THIS POLICY.

NOTICE: PURSUANT TO ARIZONA REVISED STATUTES S 20-401.01, SUBSECTION B, PARAGRAPH
1, THIS POLICY IS ISSUED BY AN INSURER THAT DOES NOT POSSESS A CERTIFICATE OF
AUTHORITY FROM THE DIRECTOR OF THE ARIZONA DEPARTMENT OF INSURANCE. IF THE INSURER THAT ISSUED
THIS POLICY BECOMES INSOLVENT, INSUREDS OR CLAIMANTS WILL NOT BE ELIGIBLE FOR INSURANCE GUARANTY
FUND PROTECTION PURSUANT TO ARIZONA REVISED STATUTES TITLE 20.

NOTICE: THIS IS A INDEMNIFICATION POLICY. THIS POLICY INDEMNIFIES THE NAMED INSURED ONLY AND WILL
NOT MAKE PAYMENTS TO ANY THIRD PARTY. THIS POLICY IS SUBJECT TO COMMUTATION AT THE DISCRETION OF
THE NAMED INSURED AT ANY TIME AFTER DECEMBER 31, 2027 AND ON OR BEFORE DECEMBER 31, 2045. IN THE
EVENT OF COMMUTATION, THE INSURER WILL NOT HAVE ANY FURTHER LIABILITY UNDER THIS POLICY TO THE
NAMED INSURED OR ANY OTHER PARTY REGARDLESS OF THE DATE OF OCCURRENCE OF A CLAIM OR EVENT GIVING
RISE TO A CLAIM. IF NOT PREVIOUSLY COMMUTED, THIS POLICY TERMINATES ON DECEMBER 31, 2045 AND THE
INSURER WILL NOT HAVE ANY FURTHER LIABILITY UNDER THIS POLICY TO THE NAMED INSURED OR ANY OTHER
PARTY.

NOTICE: THIS POLICY CONTAINS CERTAIN PROVISIONS AND REQUIREMENTS UNIQUE TO IT AND MAY BE DIFFERENT
FROM OTHER POLICIES THE NAMED INSURED MAY HAVE PREVIOUSLY PURCHASED. PLEASE READ THIS POLICY
CAREFULLY.

RECLAMATION AND RECYCLING INDEMNIFICATION POLICY

Summary of Coverage

This Policy is made and entered into as of the Effective Date by the Named Insured and the
Insurer. In consideration of the payment of the Administrative Fee and Deposit listed under Item 7
and Item 8 of the Declarations respectively and in reliance on the representations, warranties and
covenants of the Named
Insured contained herein, and in accordance with the terms of the Policy, including the
Declarations and any exhibits, schedules, endorsements hereto, or other documents incorporated
herein by reference, which together shall constitute this Reclamation and Recycling Reimbursement
Policy (this “Policy”) and subject to any retentions, limitations or exclusions, American
International Specialty Lines Insurance Company (the “Insurer”) and the Named Insured agree
as follows:

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AISLIC Policy No. 4762498

  

SECTION I. INSURING AGREEMENT

  

The Insurer shall indemnify the Named Insured, subject to the Policy Limits, the Losses arising
from the Covered Products sold during the Coverage Period, provided that:

A. The Policy shall only cover those Losses reported in writing by the Named Insured to the
Insurer during the applicable Reporting Period;

B. The Policy shall only cover Losses arising from Covered Products reclaimed and/or
recycled after the Effective Date of the Policy and before the last day of the relevant
Reporting Period.

C. The Policy shall automatically terminate and provide no further coverage to the Insured
after December 31, 2045, unless the Named Insured has previously exercised its right to
commute the Policy pursuant to Section IX of this Policy; and

D. The Policy shall not pay the Named Insured for any Losses reported to the Insurer prior
to the relevant Reporting Period.

  

SECTION II. DEFINITIONS

  

	A.	 	“Actual Modules Sold” has the meaning set forth in item 5 of the Declarations and described in
Section IV(C) of the Policy.
	 
	B.	 	“Additional Deposit” has the meaning set forth in Section IV(B) of this Policy.
	 
	C.	 	“Additional
Deposit 2006” has the meaning set forth in Section IV(B) of this Policy.
	 
	D.	 	“Additional Deposit
2007” has the meaning set forth in Section IV(B) of this Policy.
	 
	E.	 	“Additional Deposit Due To
Audit” has the meaning set forth in Section IV(C) of this Policy.
	 
	F.	 	“Administrative Fee” means the
amount set forth in Item 7 of the Declarations.
	 
	G.	 	“Annual Audit Report” has the meaning set forth in Section IV(C) of this Policy.
	 
	H.	 	“Average Daily Balance” means the calculation whereby the Beginning Experience Balance is
credited with Deposit, Additional Deposit, Additional Deposit Due To Audit and Loss recoveries
received by the Insurer, and debited with any Loss payments or any other amounts paid by the
Insurer. All such debits and credits shall be made on the day such payments are received by the
Insurer or made by the Insurer to yield the Daily Balance. If there are no credits or debits to
apply, then the Daily Balance will remain unchanged from the previous day. The Daily Balances for
all calendar days in the Calculation Period are added together and this sum is divided by the total
number of calendar days in the Calculation Period to calculate the Average Daily Balance of the
Experience Balance for that Calculation Period.
	 
	I.	 	“Beginning Experience Balance” has the meaning set forth in Section V of this Policy.
	 
	J.	 	“Calculation Period” means:

     1. With respect to the period of time from the Effective Date to December 31, 2022,
annually on a calendar year basis;

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AISLIC Policy No. 4762498

     2. With respect to the period of time starting on January 1, 2023 and continuing
thereafter, quarterly.

	K.	 	“Coverage Period” has the meaning set forth in Item 2 of the Declarations.
	 
	L.	 	“Coverage Years” has the meaning set forth in Item 4 of the Declarations.
	 
	M.	 	“Coverage Year Limit(s)” has the meaning set forth in Item 6 of the Declarations and described
in Section III (B) of the Policy.
	 
	N.	 	“Coverage Territory” means worldwide, except that if coverage under this Policy is in violation
of any United States of America’s economic or trade sanctions, including but not limited to,
sanctions administered and enforced by the U.S. Treasury Department’s Office of Foreign Assets
Control (“OFAC”), then such coverage shall be null and void.
	 
	O.	 	“Covered Products” means the solar modules manufactured and sold by the Insured during the
Coverage Period.
	 
	P.	 	“Credit Amount” means the amount that shall be determined for each Calculation Period based upon
the following formula:

1. With respect to the period of time from the Effective Date to December 31, 2005, [(1 +
Crediting Rate)(7/12)-1] x Average Daily Balance;

2. With respect to the period of time from January 1, 2006 to December 31, 2022, Crediting
Rate x Average Daily Balance;

3. With respect to the period of time starting on January 1, 2023 and continuing
thereafter, [(1 + Crediting Rate)(1/4)-1] x Average Daily Balance.

The calculation of the Credit Amount shall be performed by the Insurer annually, and a
statement reflecting this compounding calculation shall be available to the Named Insured
upon written request.

	Q.	 	“Crediting Rate” means :

1. With respect to the period of time from the Effective Date to December 31, 2022, a fixed
rate equal to the U.S. Dollar Finance AAA 18-year rate reported on the Bloomberg Financial
Markets Services Display Screen (Curve 21) as of the Effective Date, minus 120 basis
points;

2. With respect to the period of time starting on January 1, 2023 and continuing
thereafter, LIBOR minus 35 basis points

	R.	 	“Declarations” means the declarations page attached to the front of this Policy.
	 
	S.	 	“Deposit” means the amount set forth in Item 8 of the Declarations.
	 
	T.	 	“Discount Rate” has the meaning set forth in Section IV of the Policy.
	 
	U.	 	“Effective Date” means the date specified in Item 3 of the Declarations.

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AISLIC Policy No. 4762498

	V.	 	“Ending Experience Balance” has the meaning set forth in Section V of this Policy.
	 
	W.	 	“Excess Modules Sold” has the meaning set forth in Section IV(C) of this Policy.
	 
	X.	 	“Exposure Units” means the Projected Modules Sold, Actual Modules Sold, and shall have the
meaning set forth in Item 5 of the Declarations.
	 
	Y.	 	“Experience Balance” has the meaning set forth in Section V of this Policy.
	 
	Z.	 	“Insured” means the Named Insured, First Solar, LLC, First Solar GmbH, and any subsidiaries of
the Named Insured that exist now or which may hereafter be constituted or acquired and which are
owned, financially controlled or managed by the Named Insured.
	 
	AA.	 	“Insurer” shall have the meaning set forth in the first paragraph of this Policy.
	 
	BB.	 	“LIBOR” means the three-month LIBOR for U.S. dollars, based upon the British Bankers’
Association LIBOR rate reported on the Bloomberg Financial Markets Services Display Screen or any
successor screen thereto, as of 11:00 a.m. (London time) on: (1) for the first Calculation Period,
the later of the Effective Date and the date that the Administrative Fee and Deposit are received
by the Insurer; and (2) for each Calculation Period thereafter, on the last Business Day of the
prior Calculation Period. In the event Bloomberg L.P. ceases to provide such information, the
Insurer shall select a comparable information provider for the British Bankers’ Association LIBOR
rate. In the event that no such information is available, LIBOR shall be the arithmetic mean of the
interbank rates offered by major banks in London for U.S. dollar deposits having a three-month
maturity. For the purposes of this definition of LIBOR only, “Business Day” means any day of the
week other than Saturday, Sunday and any day that is a bank or public holiday in England and Wales.
	 
	CC.	 	“Loss(es)” means all of the costs that the Named Insured has already paid or is legally
obligated to pay as a result of its reclamation and recycling of the Covered Products sold during
the Coverage Period, including, but not limited to, all costs of transporting and storing the
Covered Products prior to recycling.
	 
	DD.	 	“Module” means one solar module manufactured and sold by the Named Insured regardless of the
model or type of the solar module.
	 
	EE.	 	“Named Insured” means the party named in Item 1 of the Declarations.
	 
	FF.	 	“Per Module Limit” means the amount set forth in Item 6 of the Declarations and described in
Section III (A) of the Policy.
	 
	GG.	 	“Per Unit Deposit Rate” has the meaning set forth in Section IV of the Policy.
	 
	HH.	 	“Policy” shall have the meaning set forth in the first paragraph of this Reclamation and
Recycling Indemnification Policy.
	 
	II.	 	“Policy Aggregate Limit” means the amount set forth in Item 6 of the Declarations and described
in Section III (C) of the Policy.
	 
	JJ.	 	“Policy Limits” shall mean the amounts set forth in Item 6 of the Declarations and described in
Section III of this Policy.

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AISLIC Policy No. 4762498

	KK.	 	“Projected Modules Sold” has the meaning set forth in item 5 of the Declarations and described
in Section IV(B) of the Policy.
	 
	LL.	 	“Reporting Periods” has the meaning set forth in Item 4 of the Declarations.
	 
	MM.	 	“Surplus Line Broker” shall have the meaning set forth in Item 10 the Declarations.
	 
	NN.	 	“Terrorism” means the use or threatened use of force or violence against person or property,
or commission of an act dangerous to human life or property, or commission of an act that
interferes with or disrupts an electronic or communication system, undertaken by any person or
group, whether or not acting on behalf of or in any connection with any organization, government,
power, authority or military force, when the effect is to intimidate, coerce or harm: (1) a
government; (2) the civilian population of a country, state or community; or (3) to disrupt the
economy of a country, state or community. Terrorism includes, but is not limited to, a certified
act of terrorism defined by Section 102. Definitions, of the Terrorism Risk Insurance Act of 2002
and any revisions or amendments.

  

SECTION III. POLICY LIMITS

  

	A.	 	The Per Module Limit set forth in Item 6 of the Declarations is the maximum amount that the
Insurer will indemnify the Named Insured pursuant to the Policy in aggregate for all Losses
associated with the reclamation and recycling of one Module of the Covered Product.
	 
	B.	 	Each Coverage Year Limit is calculated as: (the reported Actual Modules Sold multiplied by Per
Module Limit). Subject to the terms set forth in Item 5 of the Declarations, If Actual Modules Sold
is not yet available, Projected Modules Sold shall be used in the calculation of Coverage Year
Limit, and the Coverage Year Limits shall only increase subject to the Insurer’s receipt of
Additional Deposit Due To Audit as set forth in Section IV of the Policy. Coverage Year Limit for
future years that are not yet determined shall only be provided upon the Named Insured payment of
Additional Deposit pursuant to Section IV of the Policy.

	 
	 	 	The Coverage Year Limits set forth in Item 6 of the Declarations is the maximum amount that
the Insurer will indemnify the Named Insured pursuant to the Policy in aggregate for all
Losses arising from the Covered Products sold during each applicable Coverage Year.
	 
	C.	 	The Policy Aggregate Limit shall equal the sum of all Coverage Year Limits. The Policy Aggregate
Limit set forth in Item 6 of the Declarations is the maximum amount that the Insurer will indemnify
the Named Insured in aggregate for all Losses covered by the Policy.

  

SECTION IV. ADMINISTRATIVE FEE, DEPOSIT, ADDITIONAL DEPOSIT, ADDITIONAL DEPOSIT DUE TO AUDIT

  

	A.	 	The Administrative Fee and Deposit for the Policy are the amounts set forth in Item 7 and Item 8
of the Declarations respectively, and are payable in full before the Effective Date. The
Administrative Fee is fully earned upon receipt by the Insurer and non-refundable. Receipt of the
Administrative Fee and Deposit in full is a condition precedent to any coverage being provided
under the Policy.
	 
	B.	 	The Named Insured shall provide the Insurer with a written report of Projected Modules Sold for
each of the 2006 Coverage Year and 2007 Coverage Year on or before the due dates set forth in Item
5 of the
Declarations. Additional Deposits for 2006 Coverage Year and 2007 Coverage Year shall be determined
by the Insurer and notified in writing by the Insurer to the Named Insured

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AISLIC Policy No. 4762498

	 	 	within 30 days after the Insurer’s receipt of written report of Projected Modules Sold. The
Additional Deposit for each Coverage Year shall be calculated as follows:

(Projected Modules Sold for the Coverage Year x Per Unit Deposit Rate),

Where the “Per Unit Deposit Rate” = $7 x [1/(1 + Discount Rate)20 ], and the
Discount Rate = U.S. Dollar Finance AAA 20-year rate reported on the Bloomberg
Financial Markets Services Display Screen (Curve 21) or any successor screen thereto on
the date the calculation is performed.

The Additional Deposit for each Coverage Year shall be payable as follows:

	 	•	 	For 2006 Coverage Year: On or before May 1, 2006 (the “Additional Deposit 2006”)
	 
	 	•	 	For
2007 Coverage Year: On or before May 1, 2007 (the “Additional Deposit 2007”)

	 	 	Upon the
Insurer’s receipt of the Additional Deposit for each Coverage Year, the Coverage Year Limit
for such Coverage Year shall equal the amount of (Projected Modules Sold for the Coverage
Year x $7).
	 
	 	 	The Insurer shall have the right to request all information supporting the Named Insured’s
calculation of Projected Modules Sold and to examine or audit the Named Insured’s records
with respect to this calculation.
	 
	C.	 	Within Sixty (60) days after the end of each Coverage Year, the Named Insured shall report to
the Insurer in writing the total number of Covered Products sold during such Coverage Year (the
“Actual Modules Sold”), and such written report shall be represented, warranted and signed by an
authorized signatory of the Named Insured (the “Annual Audit Report”).
	 
	 	 	For the number of Actual Modules Sold in excess of the Projected Modules Sold (the “Excess
Modules Sold”), an Additional Deposit Due To Audit will be calculated as follows:

(A) “Per Unit Deposit Rate” = $7 x [1/(1 + Discount Rate)18], where
Discount Rate = U.S. Dollar Finance AAA 18-year rate reported on the Bloomberg
Financial Markets Services Display Screen (Curve 21) or any successor screen
thereto on the date the calculation is performed.

(B) Additional Deposit Due To Audit = Per Unit Deposit Rate x Excess Modules Sold

	 	 	The amount of Additional Deposit Due to Audit shall be notified in writing by the Insurer to
the Named Insured within 30 days of the Insurer’s receipt of the Actual Modules Sold. Such
amount shall be payable to the Insurer on or before May 1 following each Coverage Year, and
the amount shall be credited to the Experience Balance on the date the payment is received by
the Insurer.
	 
	 	 	Upon the Insurer’s receipt of the Additional Deposit Due To Audit, the Coverage Year Limit
for the Coverage Year the audit is being performed shall be increased by an amount equal to
(Excess Modules Sold x $7.00).
	 
	 	 	In the event the Excess Modules Sold is a negative amount with respect to 2005 Coverage Year
and 2006 Coverage Year, the Coverage Year Limit for the said Coverage Year shall be reduced
by an amount equal to (the negative Excess Modules Sold x $7.00). In addition, solely in the
calculation of the Additional Deposit 2006 and Additional Deposit 2007, the Projected Modules
Sold shall be
offset by the amount of such negative Excess Modules Sold from the prior Coverage Year.

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AISLIC Policy No. 4762498

	D.	 	The Administrative Fee, Deposit, Additional Deposit and Additional Deposit Due To Audit shall be
payable to the Insurer in immediately available funds, free and clear of any setoff, counterclaim
or other deduction.
	 
	E.	 	The Administrative Fee, Deposit, Additional Deposit, and Additional Deposit Due To Audit do not
include any applicable premium taxes, other surcharges or taxes, which are the responsibility of
the Named Insured and/or the Surplus Line Broker. The Named Insured or its representatives shall
remit applicable surplus lines taxes to the appropriate taxation authorities. The Administrative
Fee, Deposit, Additional Deposit, and Additional Deposit Due To Audit do not include any
intermediary compensation, which may apply separately.
	 
	F.	 	In the event the Named Insured fails to pay any Administrative Fee, Deposit, Additional Deposit,
or Additional Deposit Due To Audit by its due date, then:

	 	a)	 	If the unpaid payment is the first Administrative Fee installment or the Deposit, then
the Policy shall not incept and no coverage shall have been afforded to the Named Insured
for any period of time.
	 
	 	b)	 	If the unpaid payment is any subsequent Administrative Fee installment, Additional
Deposit, or Additional Deposit Due To Audit, then, if not paid within five (5) business
days of the due date of such payment, this Policy shall automatically be commuted
immediately as of the due date of the unpaid payment and the Insurer shall have no further
obligations under this Policy (the “Failed Payment Commutation”). The provisions
for commutation of the Policy will govern the procedures for the Failed Payment
Commutation, other than the notice provisions, as though the Named Insured had exercised
its commutation right, including the Named Insured’s execution of a full release granting
the Insurer a complete and total release of all liabilities under the Policy in the event
of a Failed Payment Commutation. In the event of a Failed Payment Commutation, the Insurer
shall deduct the amount of the unpaid Administrative Fee, including all remaining
Administrative Fee installments, from the Experience Balance and return the remaining
Experience Balance to the Named Insured upon execution of the full release.

  

SECTION V. EXPERIENCE BALANCE

  

The Insurer shall calculate a notional Experience Balance to reflect the receipt of Deposit,
Additional Deposit, Additional Deposit Due To Audit and payment of Losses under the Policy.

The Experience Balance shall be reconciled by the Insurer as of the last day of each Calculation
Period as follows:

	 	1.	 	Beginning Experience Balance (zero prior to receipt of the Deposit);

	 	2.	 	Plus, on the later of the date the Deposit is received by the Insurer or the
Effective Date, the Insurer shall credit the Experience Balance with $1,234,000. The
entire amount of the Deposit payment must be received by the Insurer in order for the
Experience Balance to be credited as described above. Payment of Additional Deposit
and Additional Deposit Due To Audit, if any, shall be credited to the Experience
Balance on the date such cash payment is received by the Insurer.

	 	3.	 	Minus, the amount of any reimbursements for covered Losses, on the date those
payments are made by the Insurer to the Named Insured;

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AISLIC Policy No. 4762498

	 	4.	 	Plus, any Loss recoveries received by the Insurer on the date those
recoveries are received by the Insurer;

	 	5.	 	Plus, the Credit Amount earned on the Experience Balance;

	 	6.	 	Equaling, the Ending Experience Balance.

Beginning with the second Calculation Period, the Beginning Experience Balance shall be the Ending
Experience Balance for the previous Calculation Period.

  

SECTION VI. EXCLUSIONS

  

	A.	 	This Policy does not apply to:

	 	1.	 	fines or penalties imposed for violation of federal or state law;
	 
	 	2.	 	punitive or exemplary damages;
	 
	 	3.	 	Insured’s legal obligation to pay any third party because of bodily injury or
property damage;
	 
	 	4.	 	War:
	 
	 	 	 	Any liability arising directly or indirectly as a result of or in connection with war,
whether or not declared, or any act or condition incident to war. The term “war”
includes civil war, insurrection, act of foreign enemy, civil commotion, factional
civil commotion, military, naval or usurped power, rebellion or revolution.
	 
	 	5.	 	Terrorism:
	 
	 	 	 	Any liability arising directly or indirectly as a result of or in connection with
Terrorism including, but not limited to, any contemporaneous or ensuing loss caused by
fire, looting or theft.

  

SECTION VII. CLAIM HANDLING; CLAIM REPORTING; LOSS FUNDING; AUDITING

  

	A.	 	CLAIM REPORTING

	 	1.	 	Starting on January 1, 2023, the Named Insured shall submit a written report
within 15 days after the end of each calendar quarter (the “Quarterly Claims Activity
Report”) including the following information by Coverage Year:

	 	•	 	Coverage Year
	 
	 	•	 	Number
of reclaimed Modules in the reporting quarter that were sold in this Coverage Year
	 
	 	•	 	Total Losses arising from such Modules in the reporting quarter
	 
	 	•	 	Explanation of the
nature of the Losses

Not withstanding the above, the Named Insured is not required to submit a Quarterly
Claims Activity Report if there is no claim activity for the calendar quarter.

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AISLIC Policy No. 4762498

Such Quarterly Claims Activity Report shall be represented and warranted to be
accurate, and signed by an authorized signatory of the Named Insured.

	 	2.	 	The Insurer shall only indemnify the Named Insured for claims reported to the
Insurer subject to the applicable Reporting Periods set forth in Item 4 of the
Declarations. Under no circumstances shall the Insurer indemnify the Named Insured prior
to the applicable Reporting Period.

	B.	 	LOSS REIMBURSEMENT
	 
	 	 	Within forty-five (45) days of Insurer’s receipt of the Quarterly Claim Activity Report, the
Insurer shall indemnify the Named Insured for such Losses, subject to the Policy Limits, in
the manner agreed upon between the parties.
	 
	C.	 	AUDITING
	 
	 	 	The Named Insured and each other Insured agrees that the Insurer may, at reasonable times and
upon reasonable notice, perform audits of the files for any Losses covered under the Policy.
The Named Insured agrees to allow the Insurer to review all files, computer systems, loss
funding account, and any other files, systems and procedures relative to the claims handling
under this Policy and to cause any other Insured to cooperate with the Insurer in any such
audits.
	 
	D.	 	NOTICE
	 
	 	 	Reports of claims and submission of bordereau shall be sent to:
	 
	 	 	AIG Domestic Claims, Inc.

70 Pine Street, 5th Floor

New York, NY 10270

  

SECTION VIII. OTHER INSURANCE

  

This Policy provides primary insurance coverage to the Named Insured. However, if the Named Insured
has other valid and collectible insurance that covers a Loss that this Policy also covers, this
Policy shall be excess to and will not contribute with such other insurance unless the other
insurance is specifically written to be excess of this Policy or such other insurance is stated to
be pro rata or contributory coverage (in which case this Policy shall apply on the same basis).

  

SECTION IX. CANCELLATION AND COMMUTATION

  

The Policy may not be canceled by the Named Insured, but may be cancelled by the Insurer for the
reasons set forth in Section IV of this Policy. However, the Policy may be commuted at the sole
option of the Named Insured at any time after December 31, 2027 and on or before December 31, 2045,
subject to (i) the Named Insured providing the Insurer with 100 days prior written notice of its
intent to commute the Policy, (ii) a positive Experience Balance, (iii) receipt of a written
termination agreement and release signed by the Named Insured and in the form set forth as Schedule
C to this Policy confirming that the Insurer has been released from complete and total liability
under the Policy.

After the effective date of the commutation, the Insurer will not be responsible for any further
payments of any kind under the Policy, and will have no liability of any kind or nature, or arising
out of or related to,
any claims whatsoever, whether outstanding claims or future claims.

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AISLIC Policy No. 4762498

Upon commutation, the Insurer will transfer to the Named Insured an amount equal to 100% of the
Experience Balance as of the date of commutation in consideration for complete and total release of
all liabilities of the Insurer under the Policy.

SECTION X. GENERAL POLICY PROVISIONS

	A.	 	ASSIGNMENT

This Policy and any and all rights under the Policy may not be assigned without the prior
written consent of the Insurer. The Insurer shall not be bound by any assignment or transfer
of interest that takes place without its consent. Such assignment shall not be unreasonably
withheld by the Insurer.

	B.	 	CHANGES AND WAIVERS

Notice to any representative of the Insurer or knowledge possessed by any representative or
by any person shall not effect a waiver or change in any part of the Policy; nor shall the
terms of the Policy be waived, changed, modified or amended unless agreed to in writing by an
authorized representative of the Insurer.

The failure of the Insurer to enforce any provision of the Policy shall not constitute a
waiver by the Insurer of any such provision. Any past waiver of a provision by the Insurer
shall not constitute a course of conduct or a waiver in the future of that same provision.

	C.	 	REPRESENTATIONS, WARRANTIES AND COVENANTS

The Named Insured hereby represents, warrants and agrees that:

	 	1.	 	The statements in the Declarations and any other attached exhibits, schedules of
endorsements are accurate and complete. Those statements are based upon representations
the Named Insured has made to the Insurer.

	 	2.	 	The submission package provided by the Named Insured or its designated agent to
the Insurer was prepared in good faith and on the basis of assumptions, methods, data,
tests and information believed by the Named Insured to be valid and accurate in all
material respects as of the time such projections were furnished to the Insurer and as
of the Effective Date. Further, the Named Insured represents that the submission
package included loss data information which accurately reflects the most current loss
data. The submission package is incorporated into the Policy by reference.

	 	3.	 	Any representation made by the Named Insured to anyone with respect to the Policy
or any coverage under it shall be made only in the following manner: (i) by presenting a
copy of the Policy in its entirety, or (ii) in the form of Certificate of Insurance as
set forth in Schedule B of the Policy. In the event that the Policy or the Certificate
of Insurance are provided in any language other than English, the Named Insured agrees
to be responsible for complete and accurate translation.

	 	4.	 	The Named Insured was offered coverage for losses arising out of an Act of
Terrorism as defined by the federal Terrorism Risk Insurance Act of 2002 on the same
terms and conditions of the Policy and has declined such coverage. The Named Insured
also represents that it has executed the declination of coverage in form set forth in
Schedule A of the Policy.

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AISLIC Policy No. 4762498

	 	5.	 	The Insurer has issued the Policy in reliance upon the Named Insured’s
representations, warranties and covenants.

The Surplus Line Broker hereby represents and warrants and agrees that:

	 	1.	 	It has complied and will continue to comply with all requirements under the
surplus lines laws of the State of Arizona.

	 	2.	 	All representations or certificates issued by the Surplus Lines Broker will
comply with the requirements set forth above.

	 	3.	 	The Insurer has issued this Policy in reliance upon the Surplus Line Broker’s
representations, warranties and covenants.

	D.	 	NO PROFESSIONAL ADVICE

The Named Insured acknowledges and agrees that the Insurer has not provided any tax,
accounting, or legal advice in connection with this Policy, including the appropriate tax or
accounting treatment of this Policy. The Named Insured has been advised by the Insurer to
consult with its own legal, tax and accounting advisors concerning this Policy and the
appropriate treatment of it for tax and accounting purposes.

	E.	 	EXAMINATION OF BOOKS AND RECORDS

The Insurer shall have the right to examine or audit at any time the Insured’s books and
records as they relate to the Policy.

	F.	 	SUBROGATION

In the event of any payment under the Policy, the Insurer shall be subrogated to all the
Insured’s rights of recovery therefor against any person or organization, and the Insured
shall execute and deliver instruments and papers and do whatever else is necessary to secure
such rights. The amount of such recoveries received by the Insurer, if any, net of all costs
incurred shall be credited to the Experience Balance as set forth in Section V(4) hereof.
The Insured shall do nothing to prejudice such rights.

	G.	 	THIRD PARTIES

This Policy shall not be deemed to give any right or remedy whatsoever to any third party
unless said right or remedy is specifically granted to such third party by the terms hereof.

	H.	 	ENTIRE AGREEMENT

This Policy contains the full and complete understanding and agreement between the parties
hereto with respect to the subject matter hereof. The parties acknowledge that neither is
entering into the Policy in reliance upon any term, condition, representation or warranty not
stated herein and that the Policy replaces any and all prior agreements whether oral or
written, pertaining to the subject matter hereof.

	I.	 	CONSTRUCTION

It is understood and agreed that this Policy is a manuscript policy that has been negotiated
at arm’s length and on equal footing as between the Named Insured and Insurer, that both
parties are

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AISLIC Policy No. 4762498

sophisticated and that both parties fully understand and agree to all the terms and
conditions contained in the Policy. Accordingly, in any dispute concerning the meaning of the
Policy, or any term or condition hereof, such dispute shall be resolved without any
presumption or rule of construction in favor of either party or any related or similar
doctrine.

	J.	 	BANKRUPTCY

Bankruptcy or insolvency of the Insured or the Insured’s estate shall not relieve the Insurer
of any of its obligations hereunder.

	K.	 	NOTICES

Except as set forth in paragraph P below, any communication required to be given hereunder
shall be effective only if in writing and shall be deemed sufficiently given only if sent to
the Named Insured at the address or facsimile number indicated in Item 1 of the Declarations,
or to the Insurer at the address or facsimile number shown below unless a change in address
is received by the notifying party:

American International Specialty Lines Insurance Company

70 Pine Street, 5th Floor

New York, New York 10270

Facsimile: (212) 943-4054

Attention: Surveillance Manager

	L.	 	LEGAL ACTIONS

No action shall lie against the Insurer unless as a condition precedent thereto, there shall
have been full compliance with all the terms of the Policy. No person or organization shall
have the right under the Policy to join the Insured as a party to any action against the
Insurer to determine the Insurer’s liability, nor shall the Insurer be impleaded by the
Insured or his, her or its legal representative.

	M.	 	GOVERNING LAW

This Policy shall be interpreted and all disputes and controversies arising under or related
to the Policy shall be governed by and decided under the laws of the State of New York,
without regard to its conflict of laws principles.

	N.	 	OFFSET

Except with respect to the payment of Administrative Fee and Deposit, the Insured and the
Insurer shall have the right to offset any balance or amounts due from one party to the other
under the terms of the Policy. The party asserting the right of offset may exercise such
right any time whether the balances due are on account of recoveries or otherwise.

	O.	 	ALTERNATIVE DISPUTE RESOLUTION

It is hereby understood and agreed that all disputes or differences which may arise under or
in connection with the Policy, including any determination of the amount of Loss, shall be
subject to the alternative dispute resolution process (“ADR”) set forth in this
clause.

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AISLIC Policy No. 4762498

The Insurer and Insured agree that there shall be two choices of ADR:

	 	1.	 	non-binding mediation administered by the American Arbitration Association, in
which the Insurer and Insured shall try in good faith to settle the dispute by mediation
under or in accordance with its then-prevailing Commercial Mediation Rules; or

	 	2.	 	arbitration submitted to the American Arbitration Association under or in
accordance with its then prevailing Commercial Arbitration Rules, in which the
arbitration panel shall be composed of three disinterested individuals.

In either mediation or arbitration, the mediator(s) or arbitrators shall be active or former
executive officers of property-casualty insurance companies, reinsurance companies, or active
or retired lawyers with at least 10 years of experience in property-casualty insurance and
reinsurance matters and have knowledge of the legal, corporate management, and insurance
issues relevant to the matters in dispute. The mediator(s) or arbitrators shall also give due consideration to the general principles of
the law of the state governing the Policy in the construction or interpretation of the
provisions of the Policy; provided, however, that the terms, conditions,
provisions and exclusions of the Policy are to be construed in an even-handed fashion in the
manner most consistent with the relevant terms, conditions, provisions and exclusions of the
Policy.

In the event of mediation, either party shall have the right to commence an arbitration
proceeding; provided, however, that no such arbitration proceeding shall be
commenced until the mediation shall have been terminated and at least 120 days shall have
elapsed from the date of the termination.

In the event of arbitration, the decision of the arbitrators shall be final and binding and
provided to both parties, and the arbitrators’ award shall not include attorneys’ fees or
other costs.

In all events, each party shall share equally the expenses of the ADR. The mediation or
arbitration may be commenced in either New York, New York or in the city indicated in Item 1
of the Declarations as the mailing address for the Named Insured.

	P.	 	SERVICE OF SUIT

In the event of failure of the Insurer to pay any amount claimed to be due hereunder, the
Insurer, at the request of the Insured, will submit to the jurisdiction of a court of
competent jurisdiction within the United States. Nothing in this condition constitutes or
should be understood to constitute a waiver of the Insurer’s rights to commence an action in
any court of competent jurisdiction in the United States, to remove an action to a United
States District Court or to seek a transfer of a case to another court as permitted by the
laws of the United States or of any state in the United States. Service of process in such
suit may be made upon General Counsel, American International Specialty Lines Insurance
Company, 175 Water Street, New York, New York 10038 or his or her representatives, with a
copy to General Counsel, AIG Risk Finance, 70 Pine Street, 5th Floor, New York,
New York 10270. In any suit instituted against the Insurer upon this contract, the Insurer
shall abide by the final decision of such court or of any appellate court in the event of any
appeal.

Further, pursuant to any statute of any state, territory, or district of the United States
which makes provision therefor, the Insurer hereby designates the Superintendent,
Commissioner, or Director of Insurance, other officer specified for that purpose in the
statute, or his or her successor or successors
in office as its true and lawful attorney upon whom may be served any lawful process in any
action, suit, or proceeding instituted by or on behalf of the Insured or any

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AISLIC Policy No. 4762498

beneficiary hereunder arising out of the Policy, and hereby designates the above named
Counsel as the person to whom the said officer is authorized to mail such process or a true
copy thereof.

	Q.	 	INDEMNIFICATION

It is agreed by the Named Insured and the Insurer that: (a) the Insurer is not responsible
for paying any amounts beyond the Policy Aggregate Limit of the Policy; (b) it is
unanticipated that the Insurer will be legally required to pay any amounts beyond the Policy
Aggregate Limit of the Policy; and (c) it is agreed that the Insurer will have no legal or
contractual obligation to pay any amounts beyond the Policy Aggregate Limit of the Policy. In
the unanticipated event that the Insurer is legally required to pay any amounts beyond the
Policy Aggregate Limit of the Policy, the Named Insured agrees to fully indemnify and hold
harmless the Insurer with respect to such amounts, unless the event is solely a result of the
Insurer’s actions.

	R.	 	SOLE AGENT

The party identified as the Named Insured in Item 1 of the Declarations shall be the sole
agent of all Insureds hereunder for the purpose of effecting or accepting any amendments to
the Policy, and for all payments, commutation, claim reporting and reimbursement and any
other matters or communications of the Insured in connection with the Policy.

	S.	 	COUNTERPARTS

This Policy may be executed in two or more counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same document.

[REMAINDER OF PAGE LEFT INTENTIONALLY BLANK]

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AISLIC Policy No. 4762498

IN WITNESS WHEREOF, the Named Insured, its Surplus Line Broker and the Insurer have caused the
Policy to be signed, in the case of the Insurer, by its President and Secretary and, in the case of
the Surplus Line Broker and the Named Insured by their respective duly authorized representatives.

AMERICAN INTERNATIONAL SPECIALTY LINES INSURANCE COMPANY

	 	 	 
	
	 	
	 
	 	 
	Secretary
	 	President

	 	 	 	 	 
	FIRST SOLAR HOLDINGS, LLC	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	Countersigned By:	 	 
	 
	 	 	 	 
	BROWN & BROWN OF ARIZONA INC.	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 

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AISLIC Policy No. 4762498

Schedule A

SCHEDULE A

DECLINATION OF TERRORISM COVERAGE

POLICYHOLDER DISCLOSURE STATEMENT

UNDER

TERRORISM RISK INSURANCE ACT OF 2002

     You are hereby notified that under the federal Terrorism Risk Insurance Act of 2002 (the
“Act”) effective November 26, 2002, you now have a right to purchase insurance coverage for
losses arising out of an Act of Terrorism, which is defined in the Act as an act certified by the
Secretary of the Treasury (i) to be an act of terrorism, (ii) to be a violent act or an act that is
dangerous to (A) human life; (B) property or (C) infrastructure, (iii) to have resulted in damage
within the United States, or outside of the United States in case of an air carrier or vessel or
the premises of a U.S. mission and (iv) to have been committed by an individual or individuals
acting on behalf of any foreign person or foreign interest, as part of an effort to coerce the
civilian population of the United States or to influence the policy or affect the conduct of the
United States Government by coercion. You should read the Act for a complete description of its
coverage. The Secretary’s decision to certify or not to certify an event as an Act of Terrorism and
thus covered by this law is final and not subject to review. There is a $100 billion dollar annual
cap on all losses resulting from Acts of Terrorism above which no coverage will be provided under
this policy and under the Act unless Congress makes some other determination.

     For your information, coverage provided by this policy for losses caused by an Act of
Terrorism may be partially reimbursed by the United States under a formula established by the Act.
Under this formula the United States pays 90% of terrorism losses covered by this law exceeding a
statutorily established deductible that must be met by the insurer, and which deductible is based
on a percentage of the insurer’s direct earned premiums for the year preceeding the Act of
Terrorism.

     Unless you sign this form and return it to us rejecting Terrorism Coverage under the Federal
Act, you will be covered for Terrorism as defined in the Act and your premium for that coverage is
$87,000.

	 	 	 	 	 
	 	 	   X    I hereby reject coverage in accordance with the Act.
	 
	 	 	 	 
	 

	 	 
	 	 
	 

	 	 	 	 
	 

	 	Signature of Insured
	 	 
	 
	 	 	 	 
	 

	 	 
	 	 
	 

	 	 	 	 
	 

	 	Print Name/Title	 	 
	 
	 	 	 	 
	 

	 	 
	 	 
	 

	 	 	 	 
	 

	 	Date	 	 

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AISLIC Policy No. 4762498

Schedule B

SCHEDULE B

First Solar Reclamation and Recycling Program

Certificate of Insurance

Named Insured: First Solar Holdings, LLC., Insured: First Solar, LLC and First Solar GmbH

Insurer: American International Specialty Lines Insurance Company, a member company of American International Group.

Policy Number: 4762498

Policy Description: Reclamation and Recycling Indemnification Policy

Coverage Period: January 1, 2003 to December 31, 2007 with respect to year of sale of solar
modules

Coverage Territory: Worldwide, except that if coverage under this policy is in violation of
any United States of America’s economic or trade sanctions, including but not limited to, sanctions
administered and enforced by the U.S. Treasury Department’s Office of Foreign Assets Control, then
such coverage shall be null and void.

Per Module Limit: $7 per module

This Certificate of Insurance is issued by the Named Insured listed above as a matter of
information only and confers no legal rights to you as the certificate holder. The policy described
above has been issued to the Named Insured for the coverage period indicated. Notwithstanding any
requirement, term or condition of any contract or other document with respect to which this
Certificate of Insurance may be issued or may pertain, the insurance afforded by the policy
described above is subject to all the terms, exclusions and conditions of such policy. This
certificate does not amend, extend or alter the coverage provided by the policy. For a more
detailed description of the policy and its limitations, you should review the policy, which is
available to you upon your request from the Named Insured.

The Per Module Limit shown above is the maximum amount that the Insurer will pay for covered losses
relating to each solar module covered by the policy. This policy has a coverage year limit for each
coverage year in the coverage period and a policy aggregate limit which is the sum of all coverage
year limits. Once this policy aggregate limit has been paid the Insurer will no longer have any
liability for any other losses regardless of when they occurred. Each coverage year limit is based
on the solar modules sold by the Named Insured in the coverage year and reported to the Insurer
pursuant to the terms of the policy. Coverage year limits and policy aggregate limit will only
increase upon the Insurer’s receipt of additional payments required to be made by the Named
Insured. The policy limits may have already been reduced by other claims paid by the Insurer. The
Insurer does not provide any assurance on the adequacy of the Policy Limits for the exposures
covered by this policy.

This Certificate of Insurance contains only a broad outline of the policy and does not include all
of the terms, conditions and exclusions of the policy. This policy does not guarantee that the
product will perform as expected or in any particular manner and does not provide any type of
warranty coverage. This policy only indemnifies the Named Insured and will not make any payments to
you or to any other third parties. The Insurer does not have a duty to defend the Named Insured and
does not provide any assurance that the Named Insured will use the indemnification that it receives
under the policy for reclamation and recycling.
The Insurer also does not provide assurance that this policy will comply to any existing or future
environmental regulations of the United States, the European Union or any other jurisdiction
relating reclamation and recycling of solar modules. This policy may not be assigned by the Named
Insured without the prior written consent of the Insurer.

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AISLIC Policy No. 4762498

Schedule B

This policy is subject to commutation any time after December 31, 2027 at the discretion of the
Named Insured. In the event of commutation, the Insurer will not have any further liability under
the policy regardless of the date of occurrence of a claim or event giving rise to a claim. This
policy will terminate and Insurer will have no further liability under this policy either on the
date the Named Insured commutes the policy, or on December 31, 2045. This policy will automatically
be commuted if the Named Insured does not make certain payments on a timely basis to the Insurer as
required by the Policy.

This Certificate of Insurance is certified by the Named Insured to be accurate and complete. Any
errors or omissions shall be the responsibility of the Named Insured and not the Insurer, its
agents or its representatives.

	 	 	 
	 
	 	 
	 

	 	 
	 

	 	Authorized Representative of First Solar Holdings, LLC

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AISLIC Policy No. 4762498

Schedule C

SCHEDULE C

TERMINATION AGREEMENT AND RELEASE

     This TERMINATION AGREEMENT AND RELEASE, effective as of [ ] (the “Effective Date”), by
and between AMERICAN INTERNATIONAL SPECIALTY LINES INSURANCE COMPANY (the “Company”) and
FIRST SOLAR HOLDINGS, LLC. (the “Named Insured”).

W I T N E S S E T H:

     WHEREAS, the Company entered into a Reclamation and Recycling Indemnification Policy (Policy
No. 4762498) with the Named Insured, effective as of June 1, 2005 (the “Policy”), whereby
the Company agreed to indemnify the Named Insured for certain losses arising under the Policy (the
“Losses”); and

     WHEREAS, the Company and the Named Insured now wish to terminate the Policy and to terminate
all of the Company’s obligations relating to the Losses, and the Named Insured has agreed to
release the Company from any and all obligations and Losses under the Policy.

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

     1. To the extent capitalized terms are used in this Termination Agreement and Release but not
specifically defined herein, such terms shall have the same meaning as in the Policy.

     2. The Named Insured does hereby release and forever discharge the Company, its successors,
parents, affiliates, subsidiaries, employees, officers, directors, agents, shareholders and
assigns, of and from any and all liability and obligations arising out of or related to the Policy,
whether known or unknown, reported or unreported, and whether previously existing, currently
existing or arising in the future, whether grounded in law or in equity, in contract or in tort,
including, but not limited to, all causes of action, suits, claims for sums of money, contracts,
controversies, agreements, costs, damages, judgments and demands whatsoever in law or equity which
the Named Insured and its successors and assigns now have, claim to have, or may have in the future
against the Company under the terms, provisions, endorsements, addenda, conditions of, or otherwise
with respect to, the Policy. It is the intention of the parties hereto that this release operate as
a full and final settlement of the Company’s past, current and future liabilities to the Named
Insured under the Policy.

     3. The Company agrees to pay to the Named Insured $[AMOUNT] the (“Release Payment”)
within thirty (30) days of the Effective Date of this Termination Agreement and Release as
consideration for complete and total release of all liabilities of the Company under the Policy.

     4. The Named Insured covenants and agrees that the Release Payment represents full and final
payment by the Company for reimbursement of all losses and obligations under the Policy, including
for the Losses incurred or to be incurred by the Named Insured. In doing so, the Named Insured
acknowledges and agrees that there may be development on reported claims and/or known claims and/or
future liabilities that may equal or exceed the amount of the Release Payment. The Named Insured
agrees to indemnify and hold the Company harmless from and against any and all liability, loss,
damage or expense, including without limitation, reasonable attorney’s fees, arising from all
manner of action, actions, suits, claims for sums of money, contracts, controversies, agreements,
costs, damages, judgments and demands brought or
made against the Company under the Policy for Losses or otherwise.

- 23 -

 

AISLIC Policy No. 4762498

Schedule C

     5. This Termination Agreement and Release shall inure to the benefit of and be binding solely
upon the parties hereto and their successors and assigns, and is not intended to create any third
party beneficiaries.

     6. This Termination Agreement and Release contains the full and complete understanding and
agreement between the parties hereto with respect to the subject matter hereof, and the parties
acknowledge that neither is entering into this Termination Agreement and Release in reliance upon
any term, condition, representation or warranty not stated herein and that this Termination
Agreement and Release replaces any and all prior agreements whether oral or written, pertaining to
the subject matter hereof.

     7. The parties to this Termination Agreement and Release understand and agree that this
Termination Agreement and Release has been negotiated at arm’s length and on equal footing as
between the Named Insured and the Company, that both parties are sophisticated, and that both
parties fully understand and agree to all the terms and conditions contained in this Termination
Agreement and Release. Accordingly, in any dispute concerning the meaning of this Termination
Agreement and Release, or any term or condition hereof, such dispute shall be resolved without any
presumption or rule of construction in favor of either party or any related or similar doctrine.

     8. This Termination Agreement and Release may not be modified or amended except in written
instrument agreed to and signed by the parties.

     9. This Termination Agreement and Release shall be governed by the laws of the State of New
York without regard to its conflict of law principles and the parties agree that all disputes or
differences which may arise under or in connection with this Termination Agreement and Release
shall be subject to the Alternative Dispute Resolution procedures set forth in the Policy.

     10. No waiver of any of the provisions of this Termination Agreement and Release shall be
effective unless in writing and signed by the waiving party. No failure or delay by a party in
exercising any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any
single or partial exercise thereof preclude any other or further exercise thereof or the exercise
of any other right, power or privilege hereunder.

     11. If any term, covenant, warranty, or other provision of this Termination Agreement and
Release is invalid, illegal, or incapable of being enforced by any rule of law or public policy,
all other terms, covenants, warranties and other provisions of this Termination Agreement and
Release shall nevertheless remain in full force and effect so long as the economic or legal
substance of the transactions contemplated hereby is not affected in any manner adverse to either
party.

     12. Each party agrees to execute and deliver all such other documents or agreements and to
take all such other action as may be reasonably necessary or desirable to further effectuate the
purposes and intent of this Termination Agreement and Release.

     13. No failure or delay by a party in exercising any right, power or privilege hereunder shall
operate as a waiver thereof, nor shall any single or partial exercise thereof preclude any other or
further exercise thereof or the exercise of any other right, power or privilege hereunder.

     14. This Termination Agreement and Release may be executed in counterparts, all of which when
taken together shall constitute one and the same instrument, and any party hereto may execute this
Termination Agreement and Release by signing any such counterpart.

[THE REMAINDER OF THIS PAGE IS LEFT INTENTIONALLY BLANK]

- 24 -

 

AISLIC Policy No. 4762498

Schedule C

     IN WITNESS WHEREOF, the parties hereto have caused this Termination Agreement and Release to
be executed by their duly authorized representatives as of the date first above written.

FIRST SOLAR HOLDINGS, LLC.

	 	 	 	 	 
	By:

	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	AMERICAN INTERNATIONAL SPECIALTY LINES

   INSURANCE COMPANY	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 

- 25 -

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