Document:

EMCORE: WORLDWATER LETTER AGREEMENT

    

    

    
      

      

    

    EXHIBIT
      10.3

    

    

    PORTIONS
      OF THIS EXHIBIT HAVE BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL
      TREATMENT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION (THE "COMMISSION").
      THE OMISSIONS HAVE BEEN INDICATED BY ASTERISKS (“*****”), AND THE OMITTED TEXT
      HAS BEEN FILED SEPARATELY WITH THE COMMISSION.

    

    Letter
      Agreement

    Between

    Emcore
      and World Water & Power (WWAT)

    November
      29, 2006

    

    

    Emcore
      and WorldWater & Power Corp. desire to collaborate on the development and
      commercialization of concentrator photovoltaic (CPV) power systems using
      Emcore’s proprietary multi-junction solar cells (MJ). This letter agreement
      (“Letter Agreement”) defines the scope and key terms of the strategic
      relationship to be embodied in a written strategic agreement (the “Strategic
      Agreement”) and separately sets forth certain binding purchase and supply
      obligations of the parties. The term of the Strategic Agreement will be five
      years. This Letter Agreement shall be legally binding upon and enforceable
      against each of the parties and their respective successors and
      assigns.

    

    
      	1.  	
              The
                parties will collaborate on the design and development of CPV systems
                using Emcore MJ:

            

    

    

    
      	a.  	
              WorldWater
                & Power Corp. to provide requirements definition of CPV in terrestrial
                power generation in grid-connected, distributed power, and non-grid
                applications worldwide.

            

    

    

    To
      this
      end, Emcore and WorldWater & Power Corp. will establish a joint team to
      review the current technology status of MJ systems. This team is to prepare
      a
      report, and within three months, present this report to the management of both
      Emcore and WorldWater & Power Corp.

    

    This
      report will identify a common technology and commercialization platform. This
      will include development, product verification, pilot demonstration, and
      manufacturing plan with identifiable, achievable and commercial targets, such
      as:

    

    
      	i.  	
              Performance

            

    

    
      	ii.  	
              Reliability

            

    

    
      	iii.  	
              Design-to-cost
                (DTC) targets

            

    

    
      	iv.  	
              Schedule
                and quantity of prototype and production
                units

            

    

    

    
      	b.  	
              Emcore
                to design systems and develop production infrastructure to meet or
                exceed
                WorldWater & Power Corp. requirements, consistent with common
                commercial objectives.

            

    

    

    This
      effort will include:

    

    
      	i.  	
              Structural
                configuration

            

    

    
      	ii.  	
              Tracking
                systems

            

    

    
      	iii.  	
              Control
                elements

            

    

    
      	iv.  	
              Focusing
                lens assembly

            

    

    
      	v.  	
              Receiver
                modules including MJ solar cells

            

    

    

    
      	c.  	
              WorldWater
                & Power Corp. to participate in Emcore design reviews and provide
                guidance on the design, product verification, pilot projects and
                other
                efforts related to transition-to-production planning, implementation,
                and
                installation.

            

    

    

    
      	d.  	
              WorldWater
                & Power Corp. to provide design and testing support and general
                consulting on topics such as:

            

    

    

    
      	i.  	
              System
                monitoring

            

    

    
      	ii.  	
              Performance
                testing of prototype systems

            

    

    
      	iii.  	
              Demonstration
                of application of Emcore CPV systems to core applications such as
                driving
                large motors, pumps, and
                compressors.

            

    

    
      	iv.  	
              General
                PV terrestrial systems concepts such as installation, wiring of modules,
                and inverters.

            

    

    

    
      	e.  	
              WorldWater
                & Power Corp. agrees that Emcore will be its exclusive partner in the
                development of CPV systems using MJ technology. Exclusivity will
                continue
                for so long as Emcore meets the milestones and deliverables agreed
                upon in
                the statement of work. In the event that WorldWater & Power Corp.
                consummates its transaction with Entech, the parties will agree to
                continued collaboration on design and development of a CPV system
                using
                Emcore’s MJ technology with the goal of accelerating time to market.
                

            

    

    

    
      	2.  	
              Incorporate
                Emcore cells, concentrators and systems as mutually agreed to, as
                to their
                performance, price, delivery and schedules, in WorldWater & Power
                Corp. proposals and other marketing
                activities.

            

    

    

    
      	a.  	
              WorldWater
                & Power Corp. to provide bi-monthly updates to Emcore on the status
                of
                marketing efforts for Emcore CPV systems. Emcore will be invited
                to attend
                all internal marketing meetings and quarterly reviews with WorldWater
                & Power Corp.’s management.

            

    

    

    
      	b.  	
              Emcore
                to support WorldWater & Power Corp. marketing effort as requested,
                including:

            

    

    

    
      	i.  	
              Preparation
                of bid packages.

            

    

    
      	ii.  	
              Joint
                presentations to prospective
                customers.

            

    

    
      	iii.  	
              Preparation
                of marketing collateral.

            

    

    

    
      	3.  	
              During
                the term of this Letter Agreement and the Strategic Agreement, WorldWater
                & Power shall use its best efforts to market and sell to its customers
                Emcore CPV systems or CPV systems incorporating Emcore MJ or cell
                assemblies. WorldWater & Power, or third parties introduced by
                WorldWater & Power that are reasonably acceptable to Emcore, shall
                provide Emcore supply agreements leading to specific purchase orders
                for
                CPV systems, cells and cell assemblies, under which Emcore will supply
                MJ
                cells, cell assemblies and systems, with an estimated commercial
                value of
                $100 million to be supplied per the delivery schedule below. Emcore
                will
                supply MJ CPV systems that meet customer performance requirements
                at a
                market price competitive with other solar energy systems (e.g., MJ
                CPV,
                silicon flat plate or silicon CPV); provided that Emcore shall not
                be
                required to be the lowest cost supplier of systems. WorldWater & Power
                will make every effort to incorporate MJ CPV in their bids and will
                treat
                Emcore as the exclusive supplier for MJ cells, cell assemblies and
                systems
                up to the $100 million estimated commercial value. Subject to Emcore
                meeting the conditions set forth in the third sentence of this paragraph,
                WorldWater & Power, or third parties introduced by WorldWater &
                Power that are reasonably acceptable to Emcore, shall place CPV system
                orders with Emcore according to the following
                schedule:

            

    

    

    
      	a.  	
              1.5
                MW to be delivered by Emcore to WorldWater & Power Corp. by 12/31/07;
                provided, however, that if such a Purchase Order is not issued to
                Emcore
                by WorldWater & Power Corp., or by third parties introduced by
                WorldWater & Power that are reasonably acceptable to Emcore, so that
                Emcore can reasonably have time to deliver by 12/31/07 on such a
                Purchase
                Order, WorldWater & Power Corp. will either (i) place a purchase order
                (within the specified lead times) for, take delivery of and pay Emcore
                by
                1/31/08 for 40,200 MJ1
                at
                $*****
                per cell or (ii) pay Emcore $*****
                by
                1/31/08 in respect of its purchase requirements for calendar 2007.
                

            

    

    

    
      	b.  	
              10
                MW to be delivered by Emcore to WorldWater & Power Corp. by 12/31/08;
                provided, however, that if such a Purchase Order is not issued to
                Emcore
                by WorldWater & Power Corp., or by third parties introduced by
                WorldWater & Power that are reasonably acceptable to Emcore, so that
                Emcore can reasonably have time to deliver by 12/31/08 on such a
                Purchase
                Order, WorldWater & Power Corp. will place a purchase order (within
                the specified lead times) for, take delivery of and pay Emcore by
                1/31/09
                for 365,600 MJ at $*****
                per cell;
                provided,
                however, that the parties will negotiate in good faith an adjustment
                to
                such cell pricing to ensure that the overall CPV system from a price
                and
                performance perspective is competitive with other solar energy systems
                (e.g., MJ CPV, silicon flat plate or silicon CPV). For the sake of
                clarity, such adjustment may either result in an increase or decrease
                to
                the reference price.

            

    

    

    
      	c.  	
              15
                MW to be delivered by Emcore to WorldWater & Power Corp. by 12/31/09;
                provided, however, that if such a Purchase Order is not issued to
                Emcore
                by WorldWater & Power Corp., or by third parties introduced by
                WorldWater & Power that are reasonably acceptable to Emcore, so that
                Emcore can reasonably have time to deliver by 12/31/09 on such a
                Purchase
                Order, WorldWater & Power Corp. will place a purchase order (within
                the specified lead times) for, take delivery of and pay Emcore by
                1/31/10
                for 502,700 MJ at $*****
                per cell; provided, however, that the parties will negotiate in good
                faith
                an adjustment to such cell pricing to ensure that the overall CPV
                system
                from a price and performance perspective is competitive with other
                solar
                energy systems (e.g., MJ CPV, silicon flat plate or silicon CPV).
                For the
                sake of clarity, such adjustment may either result in an increase
                or
                decrease to the reference price.

            

    

    

    
      	4.  	
              Without
                limiting the MJ purchase obligations set forth in paragraph 3 above,
                WorldWater & Power Corp. and its subsidiaries and affiliates will
                purchase MJ exclusively from Emcore, provided Emcore is able to meet
                mutually agreed price, performance and delivery requirements; provided
                further that Emcore shall not be required to be the lowest cost provider
                of the MJ cells to maintain exclusivity.

            

    

    

    
      	5.  	
              The
                MJ purchase obligations set forth in paragraph 3 above are irrevocable,
                non-cancelable and non-reschedulable on a take or pay basis.
                

            

    

    

    
      	6.  	
              This
                Letter Agreement and the Strategic Agreement shall be governed by,
                and
                construed in accordance with, the laws of the State of New York,
                applicable to agreements made and to be performed within such State
                without regard to its conflicts of laws provisions which may direct
                the
                dispute to be resolved in accordance with the laws of another
                jurisdiction. Each Party consents to the jurisdiction of the Federal
                District Court for the Southern District of New York, and agrees
                to waive
                any objections to as to venue or personal
                jurisdiction.

            

    

    

    
      	7.  	
              Each
                Party hereto hereby acknowledges that all Parties hereto participated
                equally in the negotiation and drafting of this Letter Agreement
                and that,
                accordingly, no court construing this Letter Agreement shall construe
                it
                more stringently against one Party than against the
                other.

            

    

    

    
      	8.  	
              This
                Letter Agreement is subject to the confidentiality agreement between
                the
                parties entered into on October 9, 2006 (the "Nondisclosure
                Agreement").

            

    

    

    
      	9.  	
              Neither
                party may assign this Letter Agreement without the prior written
                consent
                of the other party, except that Emcore may assign its rights under
                this
                Letter Agreement in connection with the sale of all or substantially
                all
                of the business to which this Letter Agreement
                relates.

            

    

    

    
      	10.  	
              This
                Letter Agreement may be executed in any number of counterparts (including
                by facsimile) and by different parties hereto in separate counterparts,
                with the same effect as if all parties had signed the same document.
                All
                such counterparts shall be deemed an original, shall be construed
                together
                and shall constitute one and the same instrument. This Letter Agreement
                shall become effective when each party hereto shall have received
                counterparts hereof signed by all of the other parties
                hereto.

            

    

    

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    IN
      WITNESS WHEREOF, this Letter Agreement has been duly executed by each of the
      parties hereto as of the date first written above.

    

    EMCORE
      Corporation

    

    

    By:
      /s/
      Howard W. Brodie 

    Name:
      Howard W. Brodie

    Title:
      Chief
      Legal Officer, Executive Vice-President and Secretary

    

     

    WorldWater
      & Power Corp.

     

    

    By:
      /s/
      Quentin T. Kelly 

    Name:
      Quentin T. Kelly

    Title:
      Chairman

    

    

      

      
        1Quantities
          and Pricing based on Part No. 608584,
          T1000 MJ Cell. The parties may agree to a different cell size. Price per
          cell to
          WorldWater & Power Corp. for any other solar cell product will be adjusted
          accordingly so that Emcore realizes its normal fully yielded and burdened
          profit
          margin.<PAGE>
                                                                    EXHIBIT 10.5

 SUMMARY OF COMPENSATION FOR SALLY FRAME KASAKS, INTERIM CHIEF EXECUTIVE OFFICER

During her period of service as Interim Chief Executive Officer, Ms. Kasaks will
receive a base salary of $87,500 per month, or $1,050,000 on an annualized
basis, plus an annual bonus, if any, based on the Company's performance. Ms.
Kasaks will also be reimbursed for costs incurred in connection with her
relocation to Southern California in service of the Company, including rent and
utilities for a local residence, use of a car, and travel for her and her spouse
to and from their primary residence in Vermont. While in her role as Interim
Chief Executive Officer, Ms. Kasaks will not receive any equity-based awards,
but will be entitled to receive general employee benefits such as medical,
dental, vision, basic and supplemental life and disability insurance.

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