Document:

Exhibit 4.2

 

REGISTRATION
RIGHTS AGREEMENT

 

THIS REGISTRATION RIGHTS AGREEMENT (this “Agreement”) is made as of
              ,
2009, among STR Holdings, Inc., a corporation organized under the laws of
the State of Delaware (the “Company”),
and the Persons named on the signature pages hereto (including any
additional signatories to this Agreement after the date hereof, the “Stockholders”).

 

W I T N E S S E T H:

 

WHEREAS, the parties hereto desire to enter
into this Agreement to establish certain arrangements with respect to the
Company Securities owned by the Stockholders, and other related matters; and

 

NOW, THEREFORE, in consideration of the
premises and of the mutual covenants and obligations hereinafter set forth, the
parties hereto hereby agree as follows:

 

ARTICLE I

 

Section 1.01.    Demand
Registration.

 

(a)           If
the Company shall receive a written request from the DLJMB Stockholders (such
requesting person, the “Requesting Stockholder”)
that the Company effect the registration under the Securities Act of all or any
portion of such Requesting Stockholder’s Registrable Securities, and specifying
the intended method of disposition thereof, then the Company shall promptly
give notice of such requested registration (each such request shall be referred
to herein as a “Demand Registration”) at
least fifteen (15) Business Days prior to the anticipated filing date of the
registration statement relating to such Demand Registration to the other
Stockholders and thereupon shall use its best efforts to effect, as expeditiously
as possible, the registration under the Securities Act of:

 

(i)            all
Registrable Securities for which the Requesting Stockholders have requested
registration under this Section 1.01, and

 

(ii)           subject
to the restrictions set forth in Sections 1.01(e) and 1.02, all
other Registrable Securities of the same class as those requested to be
registered by the Requesting Stockholders that any Stockholders with rights to
request registration under Section 1.02 (all such Stockholders,
together with the Requesting Stockholders, the “Registering
Stockholders”) have requested the Company to register by request
received by the Company within ten (10) Business Days after such
Stockholders receive the Company’s notice of the Demand Registration, all to
the extent necessary to permit the disposition (in accordance with the intended
methods thereof as aforesaid) of the Registrable Securities so to be
registered; provided that, subject to Section 1.01(d) hereof,
the Company shall not be obligated to effect (x) more than six Demand
Registrations, (y) 

 

 

more
than one Demand Registration during any four-month period, or (z) any
Demand Registration unless the aggregate gross proceeds expected to be received
from the sale of the Registrable Securities requested to be included by all
Registering Stockholders in such Demand Registration are at least $20 million
in any Demand Registration other than the Initial Public Offering.

 

(b)           Promptly
after the expiration of the ten (10) Business Day period referred to in Section 1.01(a)(ii) hereof,
the Company will notify all Registering Stockholders of the identities of the
other Registering Stockholders and the number of shares of Registrable
Securities requested to be included therein. 
At any time prior to the effective date of the registration statement
relating to such registration, the Requesting Stockholders may revoke such
request, without liability to any of the other Registering Stockholders, by
providing a notice to the Company revoking such request.

 

(c)           The
Company shall be liable for and pay all Registration Expenses in connection
with each Demand Registration, regardless of whether such Demand Registration
is effected.

 

(d)           A
Demand Registration shall not be deemed to have occurred:

 

(i)            unless
the registration statement relating thereto (A) has become effective under
the Securities Act and (B) has remained effective for a period of at least
120 days (or such shorter period in which all Registrable Securities of the
Registering Stockholders included in such registration have actually been sold
thereunder), provided that such registration
statement shall not be considered a Demand Registration if, after such
registration statement becomes effective, (1) such registration statement
is interfered with by any stop order, injunction or other order or requirement
of the SEC or other governmental agency or court and (2) less than 75% of
the Registrable Securities included in such registration statement have been
sold thereunder; or

 

(ii)           if
the Maximum Offering Size (as defined below) is reduced in accordance with Section 1.01(e) such
that less than 50% of the Registrable Securities of the Requesting Stockholders
sought to be included in such registration are included.

 

(e)           If
a Demand Registration involves a Public Offering and the managing underwriter
advises the Company and the Requesting Stockholders that, in its view, the
number of Company Securities that the Registering Stockholders and the Company
propose to include in such registration exceeds the largest number of shares that
can be sold without having an adverse effect on such offering, including the
price at which such shares can be sold (the “Maximum
Offering Size”), the Company shall include in such registration,
in the priority listed below, up to the Maximum Offering Size:

 

(i)            first,
all Registrable Securities requested to be registered by the Registering
Stockholders (allocated, if necessary for the offering not to exceed the 

 

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Maximum
Offering Size, pro rata among such Members on the basis of the relative number
of Registrable Securities so requested to be included in such registration by
each); and

 

(ii)           second,
all Registrable Securities proposed to be registered by the Company.

 

Section 1.02.    Piggyback
Registration.

 

(a)           If
the Company proposes to register any Company Securities under the Securities
Act (whether for itself or in connection with a sale of securities by a
Stockholder, but other than a registration on Form S-8 or S-4, or any
successor or similar forms, relating to common shares issuable upon exercise of
employee stock options or in connection with any employee benefit or similar
plan of the Company or in connection with a direct or indirect acquisition by
the Company of another Person), the Company shall each such time give prompt
written notice at least ten (10) Business Days prior to the anticipated
filing date of the registration statement relating to such registration to each
Stockholder (each a “Piggyback Stockholder”),
which notice shall set forth such Piggyback Stockholder’s rights under this Section 1.02
and shall offer such Piggyback Stockholder the opportunity to include in such
registration statement the number of Registrable Securities of the same class
or series as those proposed to be registered as each such Piggyback Stockholder
may request (a “Piggyback Registration”),
subject to the provisions of Section 1.02(b).  Upon the request of any such Piggyback
Stockholder made within five (5) Business Days after the receipt of notice
from the Company (which request shall specify the number of Registrable
Securities intended to be registered by such Piggyback Stockholder), the
Company shall use its best efforts to effect the registration under the
Securities Act of all Registrable Securities that the Company has been so
requested to register by all such Piggyback Stockholders, to the extent
requisite to permit the disposition of the Registrable Securities so to be
registered, provided that (i) if such
registration involves a Public Offering, all such Piggyback Stockholders
requesting to be included in the Company’s registration must sell their
Registrable Securities to the underwriters selected as provided in Section 1.04(f)(i) on
the same terms and conditions as apply to the Company or any other selling
stockholders, and (ii) if, at any time after giving notice of its
intention to register any Company Securities pursuant to this Section 1.02(a) and
prior to the effective date of the registration statement filed in connection
with such registration, the Company shall determine for any reason not to
register such securities, the Company shall give notice to all such Piggyback
Stockholders and, thereupon, shall be relieved of its obligation to register
any Registrable Securities in connection with such registration.  No registration effected under this Section 1.02
shall relieve the Company of its obligations to effect a Demand Registration to
the extent required by Section 1.01.  The Company shall be liable for and pay all
Registration Expenses in connection with each Piggyback Registration.

 

(b)           If
a Piggyback Registration involves a Public Offering (other than any Demand
Registration, in which case the provisions with respect to priority of
inclusion in such offering set forth in Section 1.01(e) shall
apply) and the managing 

 

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underwriter
advises the Company that, in its view, the number of Company Securities that
the Company and such selling Piggyback Stockholders propose to include in such
registration exceeds the Maximum Offering Size, the Company shall include in
such registration, in the following priority, up to the Maximum Offering Size:

 

(i)            with
respect to a Public Offering by the Company for its own account:

 

(1)           first, such number of
Registrable Securities proposed to be registered for the account of the
Company, if any, as would not cause the offering to exceed the Maximum Offering
Size, and

 

(2)           second, all Registrable
Securities requested to be included in such registration by any Registering
Stockholders (allocated, if necessary for the offering not to exceed the
Maximum Offering Size, pro rata among such Stockholders based on their relative
number of Registrable Securities requested to be included in the Piggyback
Registration, unless the managing underwriter reasonably determines otherwise
(which, for the avoidance of doubt, could, in the reasonable determination of
the managing underwriter, include the exclusion of all Registrable Securities
of the Management Stockholders), in which case the allocation of such
Registrable Securities shall be in the manner reasonably determined by the
managing underwriter).

 

(ii)           With
respect to a Public Offering by the Company for the account of selling
stockholders:

 

(1)           first, all Registrable
Securities requested to be included in such registration by any Registering
Stockholders (allocated, if necessary for the offering not to exceed the
Maximum Offering Size, pro rata among such Stockholders based on their relative
number of Registrable Securities requested to be included in the Piggyback
Registration, unless the managing underwriter reasonably determines otherwise
(which, for the avoidance of doubt, could, in the reasonable determination of
the managing underwriter, include the exclusion of all Registrable Securities
of the Management Stockholders), in which case the allocation of such
Registrable Securities shall be in the manner reasonably determined by the
managing underwriter), and

 

(2)           second, all Registrable
Securities proposed to be registered for the account of the Company.

 

Section 1.03.    Lock-Up
Agreements.

 

(a)           In
connection with each underwritten Public Offering, if requested by the managing
underwriter, the Company and the Stockholders agree (and the Company agrees, in
connection with any underwritten Public Offering, to use its commercially
reasonable efforts to cause its Affiliates to agree) not to effect any public 

 

4

 

sale
or private offer or distribution, including any sale pursuant to Rule 144
of any Registrable Securities during the 10 days prior to the consummation of
such Public Offering and during such time period after the consummation of such
Public Offering, not to exceed 90 days (180 days in the case of the Initial
Public Offering); provided, however,
that no Other Stockholder will be required to agree to any restrictions that
are more restrictive than those applicable to any DLJMB Stockholder; provided further, however, that the restrictions described
in this Section 1.03 shall not apply to (i) any Company
Securities or other securities of the Company acquired in the Initial Public
Offering, in any Public Offering or in any open market transaction following
the Initial Public Offering and (ii) any Other Stockholder that ceases to
have Piggyback Registration Rights.

 

(b)           Other
than pursuant to a Demand Registration or Piggyback Registration, following the
expiration of any underwriter lock-up period applicable to the Stockholders for
the Initial Public Offering:

 

(i)            only
fifty percent (50%) of the Company Securities held by each Stockholder shall
become eligible for sale by such Stockholder on the date that is 180 days
following the expiration of such underwriter lock-up period; and

 

(ii)           the
remaining fifty percent (50%) of such Stockholder’s Company Securities shall
become eligible for sale by such Stockholder on the date that is 271 days
following the expiration of such underwriter lock-up period.

 

Section 1.04.    Registration
Procedures.  Whenever any
Stockholders request that any Registrable Securities be registered pursuant to Section 1.01
or 1.02 hereof, subject to the provisions of such Sections, the Company
shall use its best efforts to effect the registration and the sale of such
Registrable Securities in accordance with the intended method of disposition
thereof as quickly as practicable, and, in connection with any such request:

 

(a)           The
Company shall as expeditiously as possible prepare and file with the SEC a
registration statement on any form for which the Company then qualifies or that
counsel for the Company shall deem appropriate and which form shall be
available for the sale of the Registrable Securities to be registered
thereunder in accordance with the intended method of distribution thereof, and
use its best efforts to cause such filed registration statement to become and
remain effective for a period of not less than 180 days, or in the case of a
shelf registration statement, one (1) year (or such shorter period in
which all of the Registrable Securities of the Registering Stockholders
included in such registration statement shall have actually been sold
thereunder).

 

(b)           Prior
to filing a registration statement or prospectus or any amendment or supplement
thereto, the Company shall, if requested, furnish to each participating
Stockholder and each underwriter, if any, of the Registrable Securities covered
by such registration statement copies of such registration statement as
proposed to be filed, and thereafter the Company shall furnish to such
Stockholder and underwriter, 

 

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if
any, such number of copies of such registration statement, each amendment and
supplement thereto (in each case including all exhibits thereto and documents
incorporated by reference therein), the prospectus included in such
registration statement (including each preliminary prospectus and any summary
prospectus) and any other prospectus filed under Rule 424 or Rule 430A
under the Securities Act and such other documents as such Stockholder or underwriter
may reasonably request in order to facilitate the disposition of the
Registrable Securities owned by such Stockholder.

 

(c)           After
the filing of the registration statement, the Company shall (i) cause the
related prospectus to be supplemented by any required prospectus supplement,
and, as so supplemented, to be filed pursuant to Rule 424 under the
Securities Act, (ii) comply with the provisions of the Securities Act with
respect to the disposition of all Registrable Securities covered by such registration
statement during the applicable period in accordance with the intended methods
of disposition by the Registering Stockholders thereof set forth in such
registration statement or supplement to such prospectus and (iii) promptly
notify each Registering Stockholder holding Registrable Securities covered by
such registration statement of any stop order issued or threatened by the SEC
or any state securities commission and take all reasonable actions required to
prevent the entry of such stop order or to remove it if entered.

 

(d)           The
Company shall use its best efforts to (i) register or qualify the
Registrable Securities covered by such registration statement under such other
securities or “blue sky” laws of such jurisdictions in the United States as any
Registering Stockholder holding such Registrable Securities reasonably (in
light of such Stockholder’s intended plan of distribution) requests and (ii) cause
such Registrable Securities to be registered with or approved by such other
governmental agencies or authorities as may be necessary by virtue of the
business and operations of the Company and do any and all other acts and things
that may be reasonably necessary or advisable to enable such Stockholder to
consummate the disposition of the Registrable Securities owned by such
Stockholder; provided that the Company shall
not be required to (A) qualify generally to do business in any
jurisdiction where it would not otherwise be required to qualify but for this Section 1.04(d),
(B) subject itself to taxation in any such jurisdiction or (C) consent to
general service of process in any such jurisdiction.

 

(e)           The
Company shall immediately notify each Registering Stockholder holding such
Registrable Securities covered by such registration statement, at any time when
a prospectus relating thereto is required to be delivered under the Securities
Act, of the occurrence of an event requiring the preparation of a supplement or
amendment to such prospectus so that, as thereafter delivered to the purchasers
of such Registrable Securities, such prospectus will not contain an untrue
statement of a material fact or omit to state any material fact required to be
stated therein or necessary to make the statements therein not misleading and
promptly prepare and make available to each such Stockholder and file with the
SEC any such supplement or amendment.

 

(f)            (i) The
DLJMB Stockholders shall have the right, in their sole discretion, to select
the underwriter or underwriters in connection with any Public 

 

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Offering
resulting from a Demand Registration, which underwriter or underwriters may
include any Affiliate of any DLJMB Stockholder, and (ii) the Company shall
select an underwriter or underwriters in connection with any other Public
Offering.  In connection with any Public
Offering, the Company shall enter into customary agreements (including an
underwriting agreement in customary form) and take all such other actions as
are reasonably required in order to expedite or facilitate the disposition of
such Registrable Securities in any such Public Offering, including the
engagement of a “qualified independent underwriter” in connection with the
qualification of the underwriting arrangements with the NASD.

 

(g)           Upon
execution of confidentiality agreements in form and substance reasonably
satisfactory to the Company, the Company shall make available for inspection by
any Registering Stockholder and any underwriter participating in any
disposition pursuant to a registration statement being filed by the Company
pursuant to this Section 1.04 and any attorney, accountant or other
professional retained by any such Stockholder or underwriter (collectively, the
“Inspectors”), all financial and
other records, pertinent corporate documents and properties of the Company
(collectively, the “Records”) as shall be
reasonably necessary or desirable to enable them to exercise their due
diligence responsibility, and cause the Company’s officers, directors and
employees to supply all information reasonably requested by any Inspectors in
connection with such registration statement. 
Records that the Company determines, in good faith, to be confidential
and that it notifies the Inspectors are confidential shall not be disclosed by
the Inspectors unless (i) the disclosure of such Records is necessary to
avoid or correct a misstatement or omission in such registration statement or (ii) the
release of such Records is ordered pursuant to a subpoena or other order from a
court of competent jurisdiction.  Each
Registering Stockholder agrees that information obtained by it as a result of
such inspections shall be deemed confidential and shall not be used by it or
its Affiliates as the basis for any market transactions in the Company
Securities unless and until such information is made generally available to the
public.  Each Registering Stockholder
further agrees that, upon learning that disclosure of such Records is sought in
a court of competent jurisdiction, it shall give notice to the Company and
allow the Company, at its expense, to undertake appropriate action to prevent
disclosure of the Records deemed confidential.

 

(h)           The
Company shall furnish to each Registering Stockholder and to each such
underwriter, if any, a signed counterpart, addressed to such Stockholder or
underwriter, of (i) an opinion or opinions of counsel to the Company and (ii) a
comfort letter or comfort letters from the Company’s independent public
accountants, each in customary form and covering such matters of the kind
customarily covered by opinions or comfort letters, as the case may be, as a
majority of such Stockholders or the managing underwriter therefor reasonably
requests.

 

(i)            The
Company shall otherwise use its best efforts to comply with all applicable rules and
regulations of the SEC, and make available to its security holders, as soon as
reasonably practicable, an earning statement or such other document that shall
satisfy the provisions of Section 11(a) of the Securities Act and Rule 158
thereunder.

 

7

 

(j)            The
Company may require each such Registering Stockholder promptly to furnish in
writing to the Company such information regarding the distribution of the
Registrable Securities as the Company may from time to time request and such
other information as may be legally required in connection with such
registration.

 

(k)           Each
such Registering Stockholder agrees that, upon receipt of any written notice
from the Company of the occurrence of any event requiring the preparation of a supplement
or amendment of a prospectus relating to the Registrable Securities covered by
a registration statement that is required to be delivered under the Securities
Act so that, as thereafter delivered to the purchasers of such Registrable
Securities, such prospectus will not contain an untrue statement of a material
fact or omit to state any material fact required to be stated therein or to
make the statements therein not misleading, such Stockholder shall forthwith
discontinue disposition of Registrable Securities pursuant to the registration
statement covering such Registrable Securities until such Stockholder’s receipt
of the copies of a supplemented or amended prospectus, and, if so directed by
the Company, such Stockholder shall deliver to the Company all copies, other
than any permanent file copies then in such Stockholder’s possession, of the
most recent prospectus covering such Registrable Securities at the time of
receipt of such notice.  If the Company
shall give such notice, the Company shall extend the period during which such
registration statement shall be maintained effective (including the period
referred to in Section 1.04(a) hereof) by the number of days
during the period from and including the date of the giving of notice pursuant
to Section 1.04(e) hereof to the date when the Company shall
make available to such Stockholder a prospectus supplemented or amended to
conform with the requirements of Section 1.04(e) hereof.

 

(l)            The
Company shall use its reasonable efforts to list all Registrable Securities
covered by such registration statement on any securities exchange or quotation
system on which any of the Registrable Securities are then listed or traded and
to maintain such listing so long as any such Registrable Securities remain outstanding.

 

(m)          The
Company shall have appropriate officers of the Company (i) prepare and
make presentations at any “road shows” and before analysts and rating agencies,
as the case may be, (ii) take other actions to obtain ratings for any
Registrable Securities and (iii) otherwise use their reasonable efforts to
cooperate as requested by the underwriters in the offering, marketing or
selling of the Registrable Securities.

 

Section 1.05.    Indemnification
by the Company.  The Company agrees
to indemnify and hold harmless each Registering Stockholder holding Registrable
Securities covered by a registration statement, its officers, directors,
employees, managers, members, partners and agents, and each Person, if any, who
controls any such Persons within the meaning of Section 15 of the
Securities Act or Section 20 of the Exchange Act from and against any and
all losses, claims, damages, liabilities and expenses (including reasonable
expenses of investigation and reasonable attorneys’ fees and expenses) (“Damages”) caused by or relating to
any untrue statement or alleged untrue statement of a material fact contained
in any registration statement, prospectus or free writing 

 

8

 

prospectus
relating to the Registrable Securities (as amended or supplemented if the
Company shall have furnished any amendments or supplements thereto) or any
preliminary prospectus, or caused by or relating to any omission or alleged
omission to state therein a material fact required to be stated therein or
necessary to make the statements therein not misleading, except insofar as such
Damages are caused by or related to any such untrue statement or omission or
alleged untrue statement or omission so made based upon information furnished
in writing to the Company by such Stockholder or on such Stockholder’s behalf
expressly for use therein, provided that,
with respect to any untrue statement or omission or alleged untrue statement or
omission made in any preliminary prospectus, or in any prospectus, as the case
may be, the indemnity agreement contained in this paragraph shall not apply to
the extent that any Damages result from the fact that a current copy of the
prospectus (or such amended or supplemented prospectus, as the case may be) was
not sent or given to the Person asserting any such Damages at or prior to the
written confirmation of the sale of the Registrable Securities concerned to
such Person if it is determined that the Company has provided such prospectus
to such Stockholder and it was the responsibility of such Stockholder to
provide such Person with a current copy of the prospectus (or such amended or
supplemented prospectus, as the case may be) and such current copy of the
prospectus (or such amended or supplemented prospectus, as the case may be)
would have cured the defect giving rise to such Damages.  The Company also agrees to indemnify any
underwriters of the Registrable Securities, their officers and directors and
each Person who controls such underwriters within the meaning of Section 15
of the Securities Act or Section 20 of the Exchange Act on substantially
the same basis as that of the indemnification of the Stockholders provided in
this Section 1.05.

 

Section 1.06.    Indemnification
by the Participating Stockholders. 
Each Registering Stockholder holding Registrable Securities included in
any registration statement agrees, severally but not jointly, to indemnify and
hold harmless the Company, its officers, directors and agents and each Person,
if any, who controls the Company within the meaning of either Section 15
of the Securities Act or Section 20 of the Exchange Act to the same extent
as the foregoing indemnity from the Company to such Stockholder, but only (i) with
respect to information furnished in writing to the Company by such Stockholder
or on such Stockholder’s behalf expressly for use in any registration statement
or prospectus relating to the Registrable Securities, or any amendment or
supplement thereto, or any preliminary prospectus or (ii) to the extent
that any Damages result from the fact that a current copy of the prospectus (or
such amended or supplemented prospectus, as the case may be) was not sent or
given to the Person asserting any such Damages at or prior to the written
confirmation of the sale of the Registrable Securities concerned to such Person
if it is determined that it was the responsibility of such Stockholder to
provide such Person with a current copy of the prospectus (or such amended or
supplemented prospectus, as the case may be) and such current copy of the
prospectus (or such amended or supplemented prospectus, as the case may be) was
available to such Stockholder and would have cured the defect giving rise to
such Damages.  Each such Stockholder also
agrees to indemnify and hold harmless underwriters of the Registrable
Securities, their officers and directors and each Person 

 

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who
controls such underwriters within the meaning of either Section 15 of the
Securities Act or Section 20 of the Exchange Act on substantially the same
basis as that of the indemnification of the Company provided in this Section 1.06.  As a condition to including Registrable
Securities in any registration statement filed in accordance with Article 5
hereof, the Company may require that it shall have received an undertaking
reasonably satisfactory to it from any underwriter to indemnify and hold it
harmless to the extent customarily provided by underwriters with respect to
similar securities.  No Registering
Stockholder shall be liable under this Section 1.06 for any Damages
in excess of the net proceeds realized by such Stockholder in the sale of
Registrable Securities of such Stockholder to which such Damages relate.

 

Section 1.07.    Conduct
of Indemnification Proceedings.  If
any proceeding (including any governmental investigation) shall be instituted
involving any Person in respect of which indemnity may be sought pursuant to
this Agreement, such Person (an “Indemnified Party”)
shall promptly notify the Person against whom such indemnity may be sought (the
“Indemnifying Party”) in writing and
the Indemnifying Party shall assume the defense thereof, including the
employment of counsel reasonably satisfactory to such Indemnified Party, and
shall assume the payment of all fees and expenses, provided that the failure of
any Indemnified Party so to notify the Indemnifying Party shall not relieve the
Indemnifying Party of its obligations hereunder except to the extent that the
Indemnifying Party is materially prejudiced by such failure to notify.  In any such proceeding, any Indemnified Party
shall have the right to retain its own counsel, but the fees and expenses of
such counsel shall be at the expense of such Indemnified Party unless (i) the
Indemnifying Party and the Indemnified Party shall have mutually agreed to the
retention of such counsel or (ii) in the reasonable judgment of such
Indemnified Party representation of both parties by the same counsel would be
inappropriate due to actual or potential differing interests between them.  It is understood that, in connection with any
proceeding or related proceedings in the same jurisdiction, the Indemnifying
Party shall not be liable for the reasonable fees and expenses of more than one
separate firm of attorneys (in addition to any local counsel) at any time for
all such Indemnified Parties, and that all such fees and expenses shall be
reimbursed as they are incurred.  In the
case of any such separate firm for the Indemnified Parties, such firm shall be
designated in writing by the Indemnified Parties.  The Indemnifying Party shall not be liable
for any settlement of any proceeding effected without its written consent, but
if settled with such consent, or if there be a final judgment for the
plaintiff, the Indemnifying Party shall indemnify and hold harmless such
Indemnified Parties from and against any Damages (to the extent stated above)
by reason of such settlement or judgment. 
Without the prior written consent of the Indemnified Party, no
Indemnifying Party shall effect any settlement of any pending or threatened
proceeding in respect of which any Indemnified Party is or could have been a
party and indemnity could have been sought hereunder by such Indemnified Party,
unless such settlement includes an unconditional release of such Indemnified
Party from all liability arising out of such proceeding.

 

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Section 1.08.    Contribution.  If the indemnification provided for in this Article 1
is unavailable to the Indemnified Parties in respect of any Damages, then each
such Indemnifying Party, in lieu of indemnifying such Indemnified Party, shall
contribute to the amount paid or payable by such Indemnified Party as a result
of such Damages (i) as between the Company and the Registering
Stockholders holding Registrable Securities covered by a registration statement
on the one hand and the underwriters on the other, in such proportion as is
appropriate to reflect the relative benefits received by the Company and such
Stockholders on the one hand and the underwriters on the other, from the
offering of the Registrable Securities, or if such allocation is not permitted
by applicable law, in such proportion as is appropriate to reflect not only the
relative benefits but also the relative fault of the Company and such
Stockholders on the one hand and of such underwriters on the other in
connection with the statements or omissions that resulted in such Damages, as
well as any other relevant equitable considerations and (ii) as between
the Company on the one hand and each such Stockholder on the other, in such
proportion as is appropriate to reflect the relative fault of the Company and
of each such Stockholder in connection with such statements or omissions, as
well as any other relevant equitable considerations.  The relative benefits received by the Company
and such Stockholders on the one hand and such underwriters on the other shall
be deemed to be in the same proportion as the total proceeds from the offering
(net of underwriting discounts and commissions but before deducting expenses)
received by the Company and such Stockholders bear to the total underwriting
discounts and commissions received by such underwriters, in each case as set
forth in the table on the cover page of the prospectus.  The relative fault of the Company and such
Stockholders on the one hand and of such underwriters on the other shall be
determined by reference to, among other things, whether the untrue or alleged
untrue statement of a material fact or the omission or alleged omission to
state a material fact relates to information supplied by the Company and such
Stockholders or by such underwriters. 
The relative fault of the Company on the one hand and of each such
Stockholder on the other shall be determined by reference to, among other
things, whether the untrue or alleged untrue statement of a material fact or
the omission or alleged omission to state a material fact relates to
information supplied by such party, and the parties’ relative intent,
knowledge, access to information and opportunity to correct or prevent such
statement or omission.

 

The Company and the Registering Stockholders
agree that it would not be just and equitable if contribution pursuant to this Section 1.08
were determined by pro rata allocation (even if the underwriters were treated
as one Member for such purpose) or by any other method of allocation that does
not take account of the equitable considerations referred to in the immediately
preceding paragraph.  The amount paid or
payable by an Indemnified Party as a result of the Damages referred to in the
immediately preceding paragraph shall be deemed to include, subject to the
limitations set forth above, any legal or other expenses reasonably incurred by
such Indemnified Party in connection with investigating or defending any such
action or claim.  Notwithstanding the
provisions of this Section 1.08, no underwriter shall be required
to contribute any amount in excess of the amount by which the total price at
which the Registrable Securities underwritten by it and distributed to the
public were offered to the 

 

11

 

public exceeds
the amount of any Damages that such underwriter has otherwise been required to
pay by reason of such untrue or alleged untrue statement or omission or alleged
omission, and no Registering Stockholder shall be required to contribute any
amount in excess of the amount by which the net proceeds realized by such
Stockholder in the sale of Registrable Securities of such Stockholder to which
such Damages relate exceeds the amount of any Damages that such Stockholder has
otherwise been required to pay by reason of such untrue or alleged untrue
statement or omission or alleged omission. 
No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of
the Securities Act) shall be entitled to contribution from any Person who was
not guilty of such fraudulent misrepresentation.  Each Registering Stockholder’s obligation to
contribute pursuant to this Section 1.08 is several in the
proportion that the proceeds of the offering received by such Stockholder bears
to the total proceeds of the offering received by all such Registering
Stockholders and not joint.

 

Section 1.09.    Participation
in Public Offering.  No Stockholder
will be permitted to require registration of any Registrable Securities in any
Public Offering hereunder unless such Stockholder (a) agrees to sell such
Registrable Securities on the basis provided in any underwriting arrangements
approved by the Persons entitled hereunder to approve such arrangements and (b) completes
and executes all questionnaires, powers of attorney, indemnities, underwriting
agreements and other documents reasonably required under the terms of such
underwriting arrangements and the provisions of this Agreement in respect of
registration rights.

 

Section 1.10.    Other
Indemnification.  Indemnification
similar to that specified herein (with appropriate modifications) shall be
given by the Company and each Stockholder participating therein with respect to
any required registration or other qualification of securities under any
federal or state law or regulation or governmental authority other than the
Securities Act.

 

Section 1.11.    Cooperation
by the Company.  If any Stockholder
shall transfer any Registrable Securities pursuant to Rule 144 of the
Securities Act, the Company shall cooperate, to the extent commercially
reasonable, with such Stockholder and shall provide to such Stockholder such
information as such Stockholder shall reasonably request.

 

Section 1.12.    No
Transfer of Registration Rights. 
None of the rights of Stockholders under this Agreement shall be
assignable by any Stockholder to any Person acquiring Securities in any Public
Offering or pursuant to Rule 144 of the Securities Act.

 

Section 1.13.    Restriction
on Company Grants of Subsequent Registration Rights.  The Company agrees that, without the prior
written consent of the DLJMB Stockholders, it shall not enter into any
agreement with the holder or prospective holder of any securities of the
Company that would allow such holder or prospective holder any registration
rights.

 

12

 

ARTICLE
II

 

The
following terms, as used herein, have the following meanings:

 

Section 2.01.    “Affiliate”
of any Person means any Person that directly, or indirectly through one or more
intermediaries, controls, is controlled by or is under common control with such
Person, and the term “Affiliated” shall have a correlative meaning.

 

Section 2.02.    “Business
Day” means any day, excluding Saturday, Sunday and any other day on which
commercial banks in New York, New York are authorized or required by law to
close.

 

Section 2.03.    “Company
Securities” means (i) the common stock of the Company, (ii) any
other stock issued by the Company and (iii) any securities convertible
into or exchangeable for, or options, warrants or other rights to acquire,
common stock or any other stock issued by the Company.

 

Section 2.04.    “DLJMB
Stockholders” means DLJ Merchant Banking Partners IV, L.P., DLJMB Offshore
Partners IV, L.P., DLJ Merchant Banking Partners IV (Pacific), L.P. and MBP IV
Plan Investors, L.P., DLJ Merchant Banking Partners IV (Co-Investments), L.P.

 

Section 2.05.    “Exchange
Act” means the Securities Exchange Act of 1934, as amended and the rules and
regulations promulgated thereunder.

 

Section 2.06.    “Initial
Public Offering” means the first Public Offering.

 

Section 2.07.    “Management
Stockholder” means any Stockholder who is an employee of the Company or any
of its Subsidiaries.  In no event shall
any DLJMB Stockholder be deemed to be a Management Stockholder.

 

Section 2.08.    “Other
Stockholder” means all Stockholders other than the DLJMB Stockholders.

 

Section 2.09.    “Person”
means any individual or entity and, where the context so permits, the legal
representatives, successors in interest and permitted assigns of such Person.

 

Section 2.10.    “Public
Offering” means an underwritten public offering of Company Securities
pursuant to an effective registration statement under the Securities Act, other
than pursuant to a registration statement on Form S-4 or Form S-8 or
any similar or successor form.

 

Section 2.11.    “Registrable
Securities” means, at any time, any common stock of the Company until (i) a
registration statement covering such shares has been declared effective by the
SEC and such shares have been disposed of pursuant to such 

 

13

 

effective
registration statement, (ii) such shares are sold under Rule 144
under the Securities Act, (iii) such shares are then included in an effective registration
statement filed pursuant to this Agreement or (iv) such shares are
eligible for sale without registration pursuant to Rule 144 under the
Securities Act without limitation thereunder on volume or manner of sale.

 

Section 2.12.    “Registration
Expenses” means any and all expenses incident to the performance of or
compliance with any registration or marketing of securities, including all (i) registration
and filing fees, and all other fees and expenses payable in connection with the
listing of securities on any securities exchange or automated interdealer
quotation system, (ii) fees and expenses of compliance with any securities
or “blue sky” laws (including reasonable fees and disbursements of counsel in
connection with “blue sky” qualifications of the securities registered), (iii) expenses
in connection with the preparation, printing, mailing and delivery of any
registration statements, prospectuses and other documents in connection
therewith and any amendments or supplements thereto, (iv) security engraving
and printing expenses, (v) internal expenses of the Company (including,
without limitation, all salaries and expenses of its officers and employees
performing legal or accounting duties), (vi) reasonable fees and
disbursements of counsel for the Company and customary fees and expenses for
independent certified public accountants retained by the Company (including the
expenses relating to any comfort letters or costs associated with the delivery
by independent certified public accountants of any comfort letters), (vii) reasonable
fees and expenses of any special experts retained by the Company in connection
with such registration, (viii) reasonable fees and out-of-pocket expenses
of counsel to the Stockholders participating in the offering selected (A) by
the DLJMB Stockholders, in the case of any offering in which any DLJMB
Stockholders participate, or (B) in any other case, by the Stockholders
holding the majority of the Registrable Securities to be sold for the account
of all Stockholders in the offering, (ix) fees and expenses in connection
with any review by the NASD of the underwriting arrangements or other terms of
the offering, and all fees and expenses of any “qualified independent
underwriter,” including the fees and expenses of any counsel thereto, (x) fees
and disbursements of underwriters customarily paid by issuers or sellers of
securities, but excluding any underwriting fees, discounts and commissions
attributable to the sale of Registrable Securities, (xi) costs of printing and
producing any agreements among underwriters, underwriting agreements, any “blue
sky” or legal investment memoranda and any selling agreements and other
documents in connection with the offering, sale or delivery of the Registrable
Securities, (xii) transfer agents’ and registrars’ fees and expenses and the
fees and expense of any other agent or trustee appointed in connection with
such offering, (xiii) expenses relating to any analyst or investor
presentations or any “road shows” undertaken in connection with the registration,
marketing or selling of the Registrable Securities and (xiv) fees and expenses
payable in connection with any ratings of the Registrable Securities, including
expenses relating to any presentations to rating agencies.

 

14

 

Section 2.13.    “Required
Stockholders” means Stockholders of at least a majority in number of
Registrable Securities.

 

Section 2.14.    “SEC”
means the United States Securities and Exchange Commission.

 

Section 2.15.    “Securities
Act” means the Securities Act of 1933, as amended and the rules and
regulations promulgated thereunder.

 

ARTICLE
III

 

Section 3.01.    Termination.
All rights and obligations of the Company hereunder shall terminate on the date
on which no Registrable Securities are outstanding.

 

Section 3.02.    Amendment
and Waiver. This Agreement may not be amended except by an instrument in
writing signed on behalf of each of the Company, the Required Stockholders of
all Registrable Securities and any Stockholder that would be materially and
disproportionately affected by such an amendment. Any party hereto may waive
any right of such party hereunder by an instrument in writing signed by such
party and delivered to the other parties. The failure of any party to enforce any
of the provisions of this Agreement shall in no way be construed as a waiver of
such provisions and shall not affect the right of such party thereafter to
enforce each and every provision of this Agreement in accordance with its
terms.

 

Section 3.03.    Successors
and Assigns. This Agreement shall not inure to the benefit of, or be
binding on, or be assignable or transferable by any Stockholder to, any Person
to the extent such Person acquires Company Securities in, or at any time
following, the Initial Public Offering.

 

Section 3.04.    Severability.
If any provision of this Agreement shall be declared by any court of competent
jurisdiction to be illegal, void or unenforceable, all other provisions of this
Agreement shall not be affected and shall remain in full force and effect.

 

Section 3.05.    Entire
Agreement. Except as otherwise expressly set forth herein, this Agreement,
together with the several agreements and other documents and instruments
referred to herein or therein or annexed hereto or thereto, embody the complete
agreement and understanding among the parties hereto with respect to the
subject matter hereof and supersede and preempt any prior understandings,
agreements or representations by or among the parties, written or oral, that
may have related to the subject matter hereof in any way.

 

Section 3.06.    Counterparts;
Execution by Facsimile Signature. This Agreement may be executed in any
number of counterparts, each of which shall be an 

 

15

 

original,
but all of which together shall constitute one instrument. This Agreement may
be executed by facsimile signature(s).

 

Section 3.07.    Notices.
All notices required or permitted hereunder shall be in writing and shall be
deemed effectively given (i) upon personal delivery to the party to be
notified, (ii) when sent by confirmed facsimile if sent during normal
business hours of the recipient, if not, then on the next Business Day or (iii) one
Business Day after deposit with a nationally recognized overnight courier,
specifying next day delivery, with written verification of receipt. All
communications shall be sent to the addresses set forth below or such other
address or facsimile number as a party may from time to time specify by notice
to the other parties hereto:

 

If to the Company, at:

 

STR Holdings, Inc.

10 Water Street

Endfield, CT 06082

Telephone: 860-749-8371

Attention:
[                      ]

 

If to
any Stockholder, to such Stockholder’s address as set forth in the register of
shareholders maintained by the Company.

 

Section 3.08.    Governing
Law. THIS AGREEMENT SHALL BE GOVERNED AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF NEW YORK.

 

Section 3.09.    Consent
to Jurisdiction. Each of the parties hereto hereby irrevocably and
unconditionally consents to submit to the exclusive jurisdiction and venue of
the United States District Court for the Southern District of New York and in
the courts hearing appeals therefrom unless no basis for federal jurisdiction
exists, in which event each party hereto irrevocably consents to the exclusive
jurisdiction and venue of the Supreme Court of the State of New York, New York
County, and the courts hearing appeals therefrom, for any action, suit or
proceeding arising out of or relating to this Agreement and the transactions
contemplated hereby. Each of the parties hereto irrevocably and unconditionally
waives, and agrees not to assert, by way of motion, as a defense, counterclaim
or otherwise, in any such action, suit or proceeding, any claim that such party
is not personally subject to the jurisdiction of the aforesaid courts for any
reason, other than the failure to serve process in accordance with this Section 3.09,
that it or its property is exempt or immune from jurisdiction of any such court
or from any legal process commenced in such courts (whether through service of
notice, attachment prior to judgment, attachment in aid of execution of
judgment, execution of judgment or otherwise), and to the fullest extent
permitted by applicable law, that the action, suit or proceeding in any such
court is brought in an inconvenient forum, that the venue of such action, suit
or proceeding is improper, or that this Agreement, or the subject matter
hereof, may not be enforced in or by such courts and further irrevocably
waives, to the 

 

16

 

fullest
extent permitted by applicable law, the benefit of any defense that would
hinder, fetter or delay the levy, execution or collection of any amount to
which the party is entitled pursuant to the final judgment of any court having
jurisdiction. Each of the parties hereto expressly acknowledges that the
foregoing waivers are intended to be irrevocable under the laws of the State of
New York and of the United States of America; provided, that consent by the
parties hereto to jurisdiction and service contained in this Section 3.11
is solely for the purpose referred to in this Section 2.09 and shall not
be deemed to be a general submission to said courts or in the State of New York
other than for such purpose.

 

Section 3.10.    Waiver
of Jury Trial. EACH PARTY TO THIS AGREEMENT HEREBY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY LAW, ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND,
ACTION, OR CAUSE OF ACTION (A) ARISING UNDER THIS AGREEMENT OR (B) IN
ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES
HERETO IN RESPECT OF THIS AGREEMENT OR ANY OF THE TRANSACTIONS RELATED HERETO,
IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER IN CONTRACT,
TORT, EQUITY, OR OTHERWISE. EACH PARTY TO THIS AGREEMENT HEREBY AGREES AND
CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION, OR CAUSE OF ACTION SHALL BE
DECIDED BY COURT TRIAL WITHOUT A JURY AND THAT THE PARTIES TO THIS AGREEMENT MAY FILE
AN ORIGINAL COUNTERPART OR A COPY OF THIS AGREEMENT WITH ANY COURT AS
WRITTEN EVIDENCE OF THE CONSENT OF THE PARTIES HERETO TO THE WAIVER OF THEIR
RIGHT TO TRIAL BY JURY.

 

IN WITNESS WHEREOF, each of the undersigned
has caused this Agreement to be duly executed and delivered as of the date
first written above.

 

 

	
   

  	
  STR
  HOLDINGS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  [STOCKHOLDERS]

  

 

17Exhibit
10.1

 

INDEMNITY
AGREEMENT

 

This
Indemnity Agreement (“Agreement”) is made as of
            , 2009
by and between STR Holdings, Inc. a Delaware corporation (the “Company”),
and [          ] (“Indemnitee”).

 

RECITALS

 

WHEREAS,
highly competent persons have become more reluctant to serve publicly-held
corporations as directors, officers or in other capacities unless they are
provided with adequate protection through insurance or adequate indemnification
against inordinate risks of claims and actions against them arising out of
their service to and activities on behalf of the corporation.

 

WHEREAS,
the Board of Directors of the Company (the “Board”) has determined that,
in order to attract and retain qualified individuals, the Company will maintain
on an ongoing basis, at its sole expense, liability insurance to protect
persons serving the Company and its subsidiaries from certain liabilities.  The Certificate of Incorporation (the “Charter”)
of the Company and the Bylaws (the “Bylaws”) of the Company provide for
indemnification of the officers and directors of the Company.  Indemnitee may also be entitled to
indemnification pursuant to the Delaware General Corporation Law (“DGCL”).  The Charter, Bylaws and the DGCL expressly
provide that the indemnification provisions set forth therein are not
exclusive, and thereby contemplate that contracts may be entered into between
the Company and members of the board of directors, officers and other persons
with respect to indemnification.

 

WHEREAS,
the uncertainties relating to such insurance and to indemnification have
increased the difficulty of attracting and retaining such persons.

 

WHEREAS,
the Board has determined that the increased difficulty in attracting and
retaining such persons is detrimental to the best interests of the Company’s
stockholders and that the Company should act to assure such persons that there
will be increased certainty of such protection in the future.

 

WHEREAS,
it is reasonable, prudent and necessary for the Company contractually to obligate
itself to indemnify, and to advance expenses on behalf of, such persons to the
fullest extent permitted by applicable law so that they will serve or continue
to serve the Company free from undue concern that they will not be so
indemnified.

 

WHEREAS,
this Agreement is a supplement to and in furtherance of the Charter and Bylaws
and any resolutions adopted pursuant thereto, and shall not be deemed a
substitute therefor, nor to diminish or abrogate any rights of Indemnitee
thereunder.

 

NOW,
THEREFORE, in consideration of the premises and the covenants contained herein,
the Company and Indemnitee do hereby covenant and agree as follows:

 

 

1.             Services to the Company.  Indemnitee will serve as a director and/or
officer of the Company or Enterprise for so long as Indemnitee is duly elected
or appointed or until Indemnitee tenders his resignation or is terminated.

 

2.             Definitions.  For purposes of this Agreement, the following
terms shall have the following meanings:

 

(a)           “Corporate
Status” describes the status of a person who is or was a director, officer,
trustee, partner, managing member, fiduciary, employee or agent of the Company
or of any other Enterprise which such person is or was serving at the request
of the Company.

 

(b)           “Disinterested
Director” shall mean a director of the Company who is not and was not a party
to the Proceeding in respect of which indemnification is sought by Indemnitee.

 

(c)           “Enterprise”
shall mean the Company, any Subsidiary of the Company and any other
corporation, limited liability company, partnership, limited partnership,
limited liability partnership, joint venture, trust, employee benefit plan or
other Enterprise of which Indemnitee is or was serving at the request of the
Company as a director, officer, employee, trustee, partner, managing member,
fiduciary, employee or agent.

 

(d)           “Exchange
Act” shall mean the Securities Exchange Act of 1934, as amended.

 

(e)           “Expenses”
shall include attorneys’ fees and costs, retainers, court costs, transcript
costs, fees of experts, witness fees, travel expenses, duplicating costs,
printing and binding costs, telephone charges, postage, delivery service fees,
and all other disbursements or expenses in connection with prosecuting,
defending, preparing to prosecute or defend, investigating, being or preparing
to be a witness in, or otherwise participating in, a Proceeding.  Expenses also shall include Expenses incurred
in connection with any appeal resulting from any Proceeding, including without
limitation, the premium, security for, and other costs relating to any cost
bond, supersedeas bond, or other appeal bond or its equivalent.

 

(f)            “Independent
Counsel” shall mean a law firm, or a member of a law firm, that is experienced
in matters of corporation law and neither presently is, nor in the past five
years has been, retained to represent:  (i) the
Company or Indemnitee in any matter material to either such party (other than
with respect to matters concerning the Indemnitee under this Agreement, or of
other indemnitees under similar indemnification agreements), or (ii) any
other party to the Proceeding giving rise to a claim for indemnification
hereunder.  Notwithstanding the
foregoing, the term “Independent Counsel” shall not include any person who,
under the applicable standards of professional conduct then prevailing, would
have a conflict of interest in representing either the Company or Indemnitee in
an action to determine Indemnitee’s rights under this Agreement.

 

(g)           “Person”
shall have the meaning as set forth in Sections 13(d) and 14(d) of
the Exchange Act; provided, however, that Person shall exclude (i) the
Company, (ii) any trustee or other fiduciary holding securities under an
employee benefit plan of the Company, and (iii) 

 

2

 

any
corporation owned, directly or indirectly, by the stockholders of the Company
in substantially the same proportions as their ownership of stock of the
Company.

 

(h)           The
term “Proceeding” shall include any threatened, pending or completed action,
suit, claim, arbitration, alternate dispute resolution mechanism,
investigation, inquiry, administrative hearing or any other actual, threatened
or completed proceeding, whether brought in the right of the Company or
otherwise and whether of a civil (including intentional or unintentional tort
claims), criminal, administrative or investigative nature, in which Indemnitee
was, is or will be involved as a party or otherwise by reason of the fact that
Indemnitee is or was a director or officer of the Company, by reason of any
action taken by him or of any inaction on his part while acting as director or
officer of the Company, or by reason of the fact that he is or was serving at
the request of the Company as a director, officer, trustee, general partner,
managing member, fiduciary, employee or agent of any other Enterprise, in each
case whether or not serving in such capacity at the time any liability or
expense is incurred for which indemnification, reimbursement, or advancement of
expenses can be provided under this Agreement.

 

(i)            “Subsidiary”
shall mean, in respect of any Person, any corporation, association, limited
liability company, partnership or other business entity of which more than 50%
of the total voting power of shares of capital stock or other interests (including
partnership or membership interests) entitled (without regard to the occurrence
of any contingency) to vote in the election of directors, managers or trustees
thereof is at the time owned or controlled, directly or indirectly, by (i) such
Person, (ii) such Person and one or more Subsidiaries of such Person or (iii) one
or more Subsidiaries of such Person.

 

(j)            References
to “fines” shall include any excise tax assessed with respect to any employee
benefit plan; references to “serving at the request of the Company” shall
include any service as a director, officer, trustee, partner, managing member,
fiduciary, employee or agent of the Company or which imposes duties on, or
involves services by, such director, officer, trustee, partner, managing member,
fiduciary, employee or agent with respect to an employee benefit plan, its
participants or beneficiaries; and a person who acted in good faith and in a
manner he reasonably believed to be in the best interests of the participants
and beneficiaries of an employee benefit plan shall be deemed to have acted in
a manner “not opposed to the best interests of the Company” as such terms are
referred to in this Agreement and used in the DGCL.

 

3.             Indemnity in Third-Party Proceedings.  The Company shall indemnify and hold harmless
Indemnitee in accordance with the provisions of this Section 3 if
Indemnitee is made, or is threatened to be made, a party to or a participant in
(as a witness or otherwise) any Proceeding, other than a Proceeding by or in
the right of the Company to procure a judgment in its favor.  Pursuant to this Section 3,
Indemnitee shall be indemnified against all Expenses, judgments, liabilities,
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”) actually
and reasonably incurred by Indemnitee or on his or her behalf in connection
with such Proceeding or any action, discovery event, claim, issue or matter
therein or related thereto, if Indemnitee acted in good faith, for a purpose
which he reasonably believed to be in or not opposed to the best interests of
the Company and, in the case of a criminal Proceeding, in addition, had no reasonable
cause to believe that his or her conduct was unlawful.

 

3

 

4.             Indemnity in Proceedings by or in the Right of the
Company.  The Company shall
indemnify and hold harmless Indemnitee in accordance with the provisions of
this Section 4 if Indemnitee was, is, or is threatened to be made,
a party to or a participant (as a witness or otherwise) in any Proceeding by or
in the right of the Company to procure a judgment in its favor.  Pursuant to this Section 4,
Indemnitee shall be indemnified against all Expenses actually and reasonably
incurred by him or on his behalf in connection with such Proceeding or any
claim, issue or matter therein, if Indemnitee acted in good faith and in a
manner he reasonably believed to be in or not opposed to the best interests of
the Company.  No indemnification for
Expenses shall be made under this Section 4 in respect of any
claim, issue or matter as to which Indemnitee shall have been finally adjudged
by a court in a non-appealable decision to be liable to the Company, unless and
only to the extent that any court in which the Proceeding was brought or the
Delaware Court (as defined below) shall determine upon application that,
despite the adjudication of liability but in view of all the circumstances of
the case, Indemnitee is fairly and reasonably entitled to indemnification.

 

5.             Indemnification for Expenses of a Party Who is Wholly
or Partly Successful.  Notwithstanding
any other provisions of this Agreement, to the extent that Indemnitee is a
party to (or a participant in) and is successful, on the merits or otherwise,
in any Proceeding or in defense of any claim, issue or matter therein, in whole
or in part, the Company shall indemnify and hold harmless Indemnitee against all
Expenses actually and reasonably incurred by him in connection therewith.  If Indemnitee is not wholly successful in
such Proceeding but is successful, on the merits or otherwise, as to one or
more but less than all claims, issues or matters in such Proceeding, the
Company shall indemnify and hold harmless Indemnitee against all Expenses
actually and reasonably incurred by him or on his behalf in connection with
each successfully resolved claim, issue or matter.  If the Indemnitee is not wholly successful in
such Proceeding, the Company also shall indemnify and hold harmless Indemnitee
against all Expenses reasonably incurred in connection with a claim, issue or
matter related to any claim, issue, or matter on which the Indemnitee was
successful.  For purposes of this Section 5
and without limitation, the termination of any claim, issue or matter in such a
Proceeding by withdrawal or dismissal, with or without prejudice, shall be
deemed to be a successful result as to such claim, issue or matter.

 

6.             Indemnification For Expenses of a Witness.  Notwithstanding any other provision of this
Agreement, to the extent that Indemnitee is, by reason of his or her Corporate
Status, a witness in any Proceeding to which Indemnitee is not a party, he
shall be indemnified and held harmless against all Expenses actually and
reasonably incurred by him or on his behalf in connection therewith.

 

7.             Additional Indemnification.

 

(a)           Notwithstanding
any limitation in Sections 3, 4 or 5 hereof, the Company
shall indemnify Indemnitee to the fullest extent permitted by law if Indemnitee
is made, or is threatened to be made, a party to any Proceeding (including a
Proceeding by or in the right of the Company to procure a judgment in its
favor) against all Losses actually and reasonably incurred by Indemnitee in
connection with the Proceeding.  No
indemnification shall be made under this Section 7(a) on
account of Indemnitee’s conduct which constitutes a breach of Indemnitee’s duty
of loyalty to the Company or its stockholders or is an act or omission not in
good faith or which involves intentional misconduct or a knowing violation of
the law.

 

4

 

(b)           For
purposes of Section 7(a) hereof, the meaning of the phrase “to
the fullest extent permitted by law” shall include, but not be limited to:

 

i.              to the fullest extent authorized or
permitted by the provisions of the DGCL as in effect as of the date of this
Agreement that authorize or contemplate indemnification by agreement; and

 

ii.             to
the fullest extent authorized or permitted by any amendments to or replacements
of the DGCL adopted after the date of this Agreement that increase the extent
to which a corporation may indemnify its officers and directors.

 

8.             Contribution in the Event of Joint Liability.

 

(a)           Whether
or not any of the indemnification and hold harmless rights provided in Sections
3, 4, 5 and 7 hereof are available in respect of
any Proceeding in which the Company is jointly liable with Indemnitee (or would
be if joined in such Proceeding), the Company shall pay, in the first instance,
the entire amount of any judgment or settlement of such Proceeding without
requiring Indemnitee to contribute to such payment, and the Company hereby
waives and relinquishes any right of contribution it may have against
Indemnitee.  The Company shall not enter
into any settlement of any Proceeding in which the Company is jointly liable
with Indemnitee (or would be if joined in such Proceeding) unless such settlement
provides for a full and final release of all claims asserted against
Indemnitee.

 

(b)           Without
diminishing or impairing the obligations of the Company set forth in the
preceding subparagraph, if, for any reason, Indemnitee shall elect or be
required to pay all or any portion of any judgment or settlement in any
Proceeding in which the Company is jointly liable with Indemnitee (or would be
if joined in such Proceeding), the Company shall contribute to the amount of
Expenses (including attorneys’ fees), judgments, fines and amounts paid in
settlement actually incurred and paid or payable by Indemnitee in proportion to
the relative benefits received by the Company and all officers, directors or
employees of the Company other than Indemnitee who are jointly liable with
Indemnitee (or would be if joined in such Proceeding), on the one hand, and
Indemnitee, on the other hand, from the transaction from which such Proceeding
arose; provided, however, that the proportion determined on the basis of
relative benefit may, to the extent necessary to conform to law, be further
adjusted by reference to the relative fault of the Company and all officers,
directors or employees of the Company other than Indemnitee who are jointly
liable with Indemnitee (or would be if joined in such Proceeding), on the one
hand, and Indemnitee, on the other hand, in connection with the events that
resulted in such expenses, judgments, fines or amounts paid in settlement, as
well as any other equitable considerations. 
The relative fault of the Company and all officers, directors or
employees of the Company other than Indemnitee who are jointly liable with
Indemnitee (or would be if joined in such Proceeding), on the one hand, and
Indemnitee, on the other hand, shall be determined by reference to, among other
things, the degree to which their actions were motivated by intent to gain
personal profit or advantage, the degree to which their liability is primary or
secondary, and the degree to which their conduct is active or passive.

 

(c)           The
Company hereby agrees to fully indemnify and hold harmless Indemnitee from any
claims for contribution which may be brought by officers, directors or
employees of the Company other than Indemnitee who may be jointly liable with
Indemnitee.

 

5

 

9.             Exclusions.  Notwithstanding
any provision in this Agreement, the Company shall not be obligated under this
Agreement to make any indemnity payment in connection with any claim made
against Indemnitee:

 

(a)           for
which payment actually has been received by or on behalf of Indemnitee under
any insurance policy or other indemnity provision, except with respect to any
excess beyond the amount actually received under any insurance policy or other
indemnity provision; or

 

(b)           for
an accounting of profits made from the purchase and sale (or sale and purchase)
by Indemnitee of securities of the Company within the meaning of Section 16(b) of
the Exchange Act or similar provisions of state statutory law or common law;

 

(c)           except
as otherwise provided in Sections 14(d)-(e) hereof, in connection
with any Proceeding (or any part of any Proceeding) initiated by Indemnitee,
including any Proceeding (or any part of any Proceeding) initiated by
Indemnitee against the Company or its directors, officers, employees or other
indemnitees, unless (i) the Board authorized the Proceeding (or any part
of any Proceeding) prior to its initiation or (ii) the Company provides
the indemnification, in its sole discretion, pursuant to the powers vested in
the Company under applicable law; or

 

(d)           to
the extent such payment would violate Section 402 of the Sarbanes-Oxley
Act of 2002.

 

10.           Advances of Expenses; Defense of Claim.

 

(a)           Notwithstanding
any provision of this Agreement to the contrary, the Company shall advance the
Expenses incurred by Indemnitee to the fullest extent permitted by law in
connection with any Proceeding within ten (10) business days after the
receipt by the Company of a statement or statements (including, at the request
of the Company, reasonable detail underlying the expenses for which payment is
requested) requesting such advances from time to time, whether prior to or
after final disposition of any Proceeding. 
Advances shall be unsecured, interest free and shall be made without
regard to Indemnitee’s ability to repay the Expenses and without regard to
Indemnitee’s ultimate entitlement to indemnification under the other provisions
of this Agreement.  Advances shall
include any and all reasonable Expenses incurred pursuing a Proceeding to
enforce this right of advancement, including Expenses incurred preparing and
forwarding statements to the Company to support the advances claimed.  The Indemnitee shall qualify for advances
solely upon the execution and delivery to the Company of an undertaking
providing that the Indemnitee undertakes to repay the advance to the extent
that it is ultimately determined that Indemnitee is not entitled to be
indemnified by the Company.  This Section 10(a) shall
not apply to any claim made by Indemnitee for which indemnity is excluded
pursuant to Section 9 hereof.

 

(b)           The
Company will be entitled to participate in the Proceeding at its own cost and
expense.

 

(c)           In
the event the Company shall be obligated under this Section 10
hereof to pay the expenses of any Proceeding against Indemnitee, the Company,
if appropriate, shall be entitled to assume the defense of such Proceeding,
with counsel approved by Indemnitee, which 

 

6

 

approval
shall not be unreasonably withheld, upon the delivery to Indemnitee of written
notice of its election so to do.  After
delivery of such notice, approval of such counsel by Indemnitee and the
retention of such counsel by the Company, the Company will not be liable to
Indemnitee under this Agreement for any fees of counsel subsequently paid or
incurred by Indemnitee with respect to the same Proceeding, provided that (a) Indemnitee
shall have the right to employ his counsel in any such Proceeding at Indemnitee’s
expense; and (b) if (1) the employment of counsel by Indemnitee has
been authorized by the Company, (2) (i) Indemnitee shall have
reasonably concluded that there may be a conflict of interest between the
Company (or any other person or persons included in a joint defense) and
Indemnitee in the conduct of any such defense or (ii) representation by
such counsel retained by the Company would be precluded under the applicable
standards of professional conduct, or (3) the Company shall not, in fact,
have employed counsel to assume the defense of such Proceeding, then the fees
and expenses of Indemnitee’s counsel shall be at the expense of the
Company.  The Company shall not be
entitled to assume the defense of any Proceeding brought by or on behalf of the
Company or as to which Indemnitee shall have reasonably made the conclusion
provided for in (2) above.

 

11.           Procedure for Notification and Application for
Indemnification.

 

(a)           Indemnitee
agrees to notify promptly the Company in writing upon being served with any
summons, citation, subpoena, complaint, indictment, information or other
document relating to any Proceeding or matter which may be subject to
indemnification or advancement of Expenses covered hereunder.  The failure of Indemnitee to so notify the
Company shall not relieve the Company of any obligation which it may have to
the Indemnitee under this Agreement or otherwise unless the Company is
materially prejudiced by such failure.

 

(b)           Indemnitee
shall thereafter deliver to the Company a written application to indemnify and
hold harmless Indemnitee in accordance with this Agreement.  Such application(s) may be delivered
from time to time and at such time(s) as reasonably appropriate.  Following such a written application for
indemnification by Indemnitee, the Indemnitee’s entitlement to indemnification
shall be determined according to Section 12(a) hereof.

 

12.           Procedure Upon Application for Indemnification.

 

(a)           Upon
written request by Indemnitee for indemnification pursuant to Section 11(b) hereof,
a determination, if required by applicable law, with respect to Indemnitee’s
entitlement thereto shall be made in the specific case by one of the following
methods, which shall be at the election of Indemnitee:  (i) by a majority vote of the
Disinterested Directors, even though less than a quorum of the Board; (ii) by
Independent Counsel in a written opinion to the Board, a copy of which shall be
delivered to Indemnitee; or (iii) by the stockholders of the Company.  If it is so determined that Indemnitee is
entitled to indemnification, payment to Indemnitee shall be made within ten (10) business
days after such determination. 
Indemnitee shall reasonably cooperate with the person, persons or entity
making such determination with respect to Indemnitee’s entitlement to
indemnification, including providing to such person, persons or entity upon
reasonable advance request any documentation or information which is not
privileged or otherwise protected from disclosure and which is reasonably
available to Indemnitee and reasonably necessary to such determination.  Any costs or expenses (including attorneys’
fees and disbursements) incurred by Indemnitee in so cooperating with the
person, persons or entity making such determination shall be borne by the
Company (irrespective of the 

 

7

 

determination
as to Indemnitee’s entitlement to indemnification) and the Company hereby
indemnifies and agrees to hold Indemnitee harmless therefrom.

 

(b)           In
the event the determination of entitlement to indemnification is to be made by
Independent Counsel pursuant to Section 12(a) hereof, the
Independent Counsel shall be selected as provided in this Section 12(b).  The Independent Counsel shall be selected by
Indemnitee (unless Indemnitee shall request that such selection be made by the
Board), and Indemnitee shall give written notice to the Company advising it of
the identity of the Independent Counsel so selected.  If the Independent Counsel is selected by the
Board, the Company shall give written notice to Indemnitee advising him of the
identity of the Independent Counsel so selected.  In either event, Indemnitee or the Company,
as the case may be, may, within ten (10) business days after such written
notice of selection shall have been received, deliver to the Company or to
Indemnitee, as the case may be, a written objection to such selection; provided,
however, that such objection may be asserted only on the ground that the
Independent Counsel so selected does not meet the requirements of “Independent
Counsel” as defined in Section 2 hereof, and the objection shall
set forth with particularity the factual basis of such assertion.  Absent a proper and timely objection, the
person so selected shall act as Independent Counsel.  If such written objection is so made and
substantiated, the Independent Counsel so selected may not serve as Independent
Counsel unless and until such objection is withdrawn or a court of competent
jurisdiction has determined that such objection is without merit.  If, within twenty (20) business days after
submission by Indemnitee of a written request for indemnification pursuant to Section 11(b) hereof,
no Independent Counsel shall have been selected and not objected to, either the
Company or Indemnitee may petition the Delaware Court (as defined below) for
resolution of any objection which shall have been made by the Company or
Indemnitee to the other’s selection of Independent Counsel and/or for the
appointment as Independent Counsel of a person selected by the Delaware Court,
and the person with respect to whom all objections are so resolved or the
person so appointed shall act as Independent Counsel under Section 12(a) hereof.  Upon the due commencement of any judicial
proceeding or arbitration pursuant to Section 14(a) of this
Agreement, Independent Counsel shall be discharged and relieved of any further
responsibility in such capacity (subject to the applicable standards of
professional conduct then prevailing).

 

(c)           The
Company agrees to pay the reasonable fees and expenses of Independent Counsel
and to fully indemnify and hold harmless such Independent Counsel against any
and all Expenses, claims, liabilities and damages arising out of or relating to
this Agreement or its engagement pursuant hereto.

 

13.           Presumptions and Effect of Certain Proceedings.

 

(a)           Neither
the failure of the Company (including by its directors or Independent Counsel)
to have made a determination prior to the commencement of any action pursuant
to this Agreement that indemnification is proper in the circumstances because
Indemnitee has met the applicable standard of conduct, nor an actual
determination by the Company (including by its directors or Independent
Counsel) that Indemnitee has not met such applicable standard of conduct, shall
be a defense to the action or create a presumption that Indemnitee has not met
the applicable standard of conduct.

 

8

 

(b)           If
the person, persons or entity empowered or selected under Section 12
of this Agreement to determine whether Indemnitee is entitled to
indemnification shall not have made a determination within thirty (30) days
after receipt by the Company of the request therefor, the requisite
determination of entitlement to indemnification shall be made in accordance
with Section 14; provided, however, that such thirty
(30) day period may be extended for a reasonable time if the person, persons or
entity making the determination with respect to entitlement to indemnification
in good faith requires such additional time for the obtaining or evaluating of
documentation and/or information relating thereto or for compliance with
applicable advance notice provisions or delivery of meeting materials in
connection with any stockholder or board meeting.

 

(c)           The
termination of any Proceeding or of any claim, issue or matter therein, by
judgment, order, settlement or conviction, or upon a plea of nolo  contendere
or its equivalent, shall not (except as otherwise expressly provided in this
Agreement) of itself adversely affect the right of Indemnitee to
indemnification or create a presumption that Indemnitee did not act in good
faith and in a manner which he reasonably believed to be in or not opposed to
the best interests of the Company or, with respect to any criminal Proceeding,
that Indemnitee had reasonable cause to believe that his conduct was not
unlawful.

 

14.           Remedies of Indemnitee.

 

(a)           In
the event that (i) a determination is made pursuant to Section 12
hereof that Indemnitee is not entitled to indemnification under this Agreement,
(ii) advancement of Expenses is not timely made pursuant to Section 10
of this Agreement, (iii) no determination of entitlement to indemnification
shall have been made pursuant to Section 12(a) of this
Agreement within thirty (30) days after receipt by the Company of the request
for indemnification (as such time period may extended in accordance with Section 13(b)),
(iv) payment of indemnification is not made pursuant to Section 5,
6 or the last sentence of Section 12(a) hereof within
ten (10) business days after receipt by the Company of a written request
therefor, or (v) payment of indemnification pursuant to Section 3,
Section 4 or Section 7 hereof is not made within ten (10) business
days after a determination has been made that Indemnitee is entitled to
indemnification, Indemnitee shall be entitled to an adjudication by the
Delaware Court (as defined below) to such indemnification or advancement of
Expenses.  Alternatively, Indemnitee, at
his option, may seek an award in arbitration to be conducted by a single
arbitrator pursuant to the Commercial Arbitration Rules of the American
Arbitration Association.  Except as set
forth herein, the provisions of Delaware law (without regard to its conflict of
laws rules) shall apply to any such arbitration.  The Company shall not oppose Indemnitee’s
right to seek any such adjudication or award in arbitration.

 

(b)           If
a determination shall have been made pursuant to Section 12(a) hereof
that Indemnitee is not entitled to indemnification, any judicial proceeding or
arbitration commenced pursuant to this Section 14 shall be
conducted in all respects as a de novo trial, or
arbitration, on the merits and Indemnitee shall not be prejudiced by reason of
that adverse determination.  If
Indemnitee commences a judicial proceeding or arbitration pursuant to this Section 14,
Indemnitee shall not be required to reimburse the Company for any advances
pursuant to Section 10 hereof until a final determination is made
with respect to Indemnitee’s entitlement to indemnification (as to which all
rights of appeal have been exhausted or lapsed).

 

9

 

(c)           If
a determination shall have been made pursuant to Section 12(a) hereof
that Indemnitee is entitled to indemnification, the Company shall be bound by
such determination in any judicial proceeding or arbitration commenced pursuant
to this Section 14, absent (i) a misstatement by Indemnitee of
a material fact, or an omission of a material fact necessary to make Indemnitee’s
statement not materially misleading, in connection with the request for
indemnification, or (ii) a prohibition of such indemnification under
applicable law.

 

(d)           The
Company shall be precluded from asserting in any judicial proceeding or
arbitration commenced pursuant to this Section 14 that the
procedures and presumptions of this Agreement are not valid, binding and
enforceable and shall stipulate in any such court or before any such arbitrator
that the Company is bound by all the provisions of this Agreement.

 

(e)           The
Company shall indemnify and hold harmless Indemnitee to the fullest extent
permitted by law against all Expenses and, if requested by Indemnitee, shall
(within ten (10) business days after the Company’s receipt of such written
request) advance such Expenses to Indemnitee, which are incurred by Indemnitee
in connection with any judicial proceeding or arbitration brought by Indemnitee
(i) to enforce his rights under, or to recover damages for breach of, this
Agreement or any other indemnification, advancement or contribution agreement
or provision of the Company’s Charter or Bylaws now or hereafter in effect; or (ii) for
recovery or advances under any insurance policy maintained by any person for
the benefit of Indemnitee, regardless of whether Indemnitee ultimately is
determined to be entitled to such indemnification, advance, contribution or
insurance recovery, as the case may be.

 

15.           Non-exclusivity; Survival of Rights; Subrogation.

 

(a)           The
rights of indemnification and to receive advancement of Expenses as provided by
this Agreement shall not be deemed exclusive of any other rights to which
Indemnitee may at any time be entitled under applicable law, the Charter,
Bylaws, any agreement, a vote of stockholders of the Company or a resolution of
the Board, or otherwise.  No amendment,
alteration or repeal of this Agreement or of any provision hereof shall limit
or restrict any right of Indemnitee under this Agreement in respect of any
action taken or omitted by such Indemnitee in his Corporate Status prior to
such amendment, alteration or repeal.  To
the extent that a change in Delaware law, whether by statute or judicial
decision, permits greater indemnification or advancement of Expenses than would
be afforded currently under the Charter, Bylaws or this Agreement, it is the
intent of the parties hereto that Indemnitee shall enjoy by this Agreement the
greater benefits so afforded by such change. 
No right or remedy herein conferred is intended to be exclusive of any
other right or remedy, and every other right and remedy shall be cumulative and
in addition to every other right and remedy given hereunder or now or hereafter
existing at law or in equity or otherwise. 
The assertion or employment of any right or remedy hereunder, or
otherwise, shall not prevent the concurrent assertion or employment of any
other right or remedy.

 

(b)           The
Company or its Subsidiaries shall be primarily liable for all indemnification,
reimbursements, advancements or similar payments (the “Indemnity Obligations”)
afforded to Indemnitee acting on behalf or at the request of the Company or any
of its Subsidiaries, whether the Indemnity Obligations are created by law,
organizational or constituent documents, contract (including this Agreement) or
otherwise. Notwithstanding the fact that such Indemnitee’s employer, other than
the Company (such persons, together with its and their heirs, successors and
assigns, the “Employer Parties”), may have concurrent liability to
Indemnitee with respect to the Indemnity Obligations, the Company hereby agrees
that in no event shall the Company or any of its Subsidiaries have any right or
claim against any of the Employer Parties for contribution or have rights of
subrogation against any Employer Parties through Indemnitee for any payment
made by the Company or any of its Subsidiaries with respect to any Indemnity
Obligation. In addition, the Company hereby agrees that in the event that any
Employer Parties pay or advance to Indemnitee any amount with respect to an
Indemnity Obligation, the Company will, or will cause its Subsidiaries to, as
applicable, promptly reimburse such Employer Parties for such payment or
advance upon request.

 

(c)           In
the event of any payment under this Agreement, the Company shall be subrogated
to the extent of such payment to all of the rights of recovery of Indemnitee,
who shall execute all papers required and take all action necessary to secure
such rights, including execution of such documents as are necessary to enable
the Company to bring suit to enforce such rights.

 

10

 

(d)           The
Company shall not be liable under this Agreement to make any payment of amounts
otherwise indemnifiable (or for which advancement is provided hereunder)
hereunder if and to the extent that Indemnitee has otherwise actually received
such payment under any insurance policy, contract, agreement or otherwise.

 

(e)           The
Company’s obligation to indemnify or advance Expenses hereunder to Indemnitee
who is or was serving at the request of the Company as a director, officer,
trustee, partner, managing member, fiduciary, employee or agent of any other
Enterprise shall be reduced by any amount Indemnitee has actually received as
indemnification or advancement of expenses from such Enterprise.

 

16.           Settlement.

 

(a)           Notwithstanding
anything in this Agreement to the contrary, the Company shall have no
obligation to indemnify Indemnitee under this Agreement for any amounts paid in
settlement of any Proceeding effected without the Company’s prior written
consent.

 

(b)           The
Company shall not, without the prior written consent of Indemnitee, consent to
the entry of any judgment against Indemnitee or enter into any settlement or
compromise which (1) includes an admission of fault of Indemnitee, any
non-monetary remedy affecting or obligation of Indemnitee, or monetary loss for
which Indemnitee is not wholly indemnified hereunder or (2) with respect
to any Proceeding with respect to which Indemnitee may be or is made a party,
witness or participant or may be or is otherwise entitled to seek
indemnification hereunder, does not include, as an unconditional term thereof,
the full release of Indemnitee from all liability in respect of such
Proceeding, which release shall be in form and substance reasonably
satisfactory to Indemnitee.  Neither the
Company nor Indemnitee shall unreasonably withhold its consent to any proposed
settlement under this Section 16.

 

17.           Insurance.

 

(a)           The
Company shall obtain and maintain a policy or policies of director’s and
officer’s liability insurance customary for similarly situated companies in a
sufficient amount as determined by the Board, with reputable insurance
companies providing the Indemnitee, other officers of the Company and members
of the Board with coverage for losses from wrongful acts, and to ensure the
Company’s performance of its indemnification obligations under this
Agreement.  In all policies of director
and officer liability insurance, Indemnitee shall be named as an insured in
such a manner as to provide Indemnitee at least the same rights and benefits as
are accorded to the most favorably insured of the Company’s officers and
directors.  Notwithstanding anything to
the contrary in this Agreement, the Company shall not indemnify the Indemnitee
to the extent the Indemnitee is actually reimbursed from the proceeds of
insurance, and in the event the Company makes any indemnification payments to
the Indemnitee and the Indemnitee is subsequently reimbursed from the proceeds
of insurance, the Indemnitee shall promptly refund such indemnification
payments to the Company to the extent of such insurance reimbursement.

 

18.           Duration of Agreement.  This Agreement shall continue until and
terminate upon the later of: (a) six (6) years after the date that
Indemnitee shall have ceased to serve as a director or officer of the Company
or as a director, officer, trustee, partner, managing member, 

 

11

 

fiduciary, employee or agent of any other corporation,
partnership, joint venture, trust, employee benefit plan or other Enterprise
which Indemnitee served at the request of the Company; or (b) one (1) year
after the final termination of any Proceeding (including any rights of appeal
thereto) then pending in respect of which Indemnitee is granted rights of
indemnification or advancement of Expenses hereunder and of any proceeding
commenced by Indemnitee pursuant to Section 14 hereof relating
thereto (including any rights of appeal of any Section 14
Proceeding).

 

19.           Severability.  If any provision or provisions of this
Agreement shall be held to be invalid, illegal or unenforceable for any reason
whatsoever: (a) the validity, legality and enforceability of the remaining
provisions of this Agreement (including without limitation, each portion of any
Section, paragraph or sentence of this Agreement containing any such provision
held to be invalid, illegal or unenforceable, that is not itself invalid,
illegal or unenforceable) shall not in any way be affected or impaired thereby
and shall remain enforceable to the fullest extent permitted by law; (b) such
provision or provisions shall be deemed reformed to the extent necessary to
conform to applicable law and to give the maximum effect to the intent of the
parties hereto; and (c) to the fullest extent possible, the provisions of
this Agreement (including, without limitation, each portion of any Section,
paragraph or sentence of this Agreement containing any such provision held to
be invalid, illegal or unenforceable, that is not itself invalid, illegal or
unenforceable) shall be construed so as to give effect to the intent manifested
thereby.

 

20.           Enforcement and Binding Effect.

 

(a)           The
Company expressly confirms and agrees that it has entered into this Agreement
and assumed the obligations imposed on it hereby in order to induce Indemnitee
to serve as a director or officer of the Company, and the Company acknowledges
that Indemnitee is relying upon this Agreement in serving as a director or
officer of the Company.

 

(b)           This
Agreement constitutes the entire agreement between the parties hereto with
respect to the subject matter hereof and supersedes all prior agreements and
understandings, oral, written and implied, between the parties hereto with
respect to the subject matter hereof.

 

(c)           The
indemnification and advancement of expenses provided by, or granted pursuant to
this Agreement shall be binding upon and be enforceable by the parties hereto
and their respective successors and assigns (including any direct or indirect
successor by purchase, merger, consolidation or otherwise to all or
substantially all of the business or assets of the Company), shall continue as
to an Indemnitee who has ceased to be a director, officer, employee or agent of
the Company or of any other Enterprise at the Company’s request, and shall
inure to the benefit of Indemnitee and his or her spouse, assigns, heirs,
devisees, executors and administrators and other legal representatives.

 

(d)           The
Company shall require and cause any successor (whether direct or indirect by
purchase, merger, consolidation or otherwise) to all, substantially all or a
substantial part, of the business and/or assets of the Company, by written
agreement in form and substance satisfactory to the Indemnitee, expressly to
assume and agree to perform this Agreement in the same manner and to the same
extent that the Company would be required to perform if no such succession had
taken place.

 

12

 

(e)           The
Company and Indemnitee agree herein that a monetary remedy for breach of this
Agreement, at some later date, may be inadequate, impracticable and difficult
of proof, and further agree that such breach may cause Indemnitee irreparable
harm.  Accordingly, the parties hereto
agree that Indemnitee may enforce this Agreement by seeking injunctive relief
and/or specific performance hereof, without any necessity of showing actual
damage or irreparable harm and that by seeking injunctive relief and/or
specific performance, Indemnitee shall not be precluded from seeking or
obtaining any other relief to which he may be entitled.  The Company and Indemnitee further agree that
Indemnitee shall be entitled to such specific performance and injunctive
relief, including temporary restraining orders, preliminary injunctions and
permanent injunctions, without the necessity of posting bonds or other
undertaking in connection therewith.  The
Company acknowledges that in the absence of a waiver, a bond or undertaking may
be required of Indemnitee by any court of competent jurisdiction, and the
Company hereby waives any such requirement of such a bond or undertaking.

 

21.           Modification and Waiver.  No supplement, modification or amendment of
this Agreement shall be binding unless executed in writing by the parties
hereto.  No waiver of any of the
provisions of this Agreement shall be deemed or shall constitute a waiver of
any other provisions of this Agreement nor shall any waiver constitute a
continuing waiver.

 

22.           Notices. 
All notices, requests, demands and other communications under this
Agreement shall be in writing and shall be deemed to have been duly given (a) if
delivered by hand and receipted for by the party to whom said notice or other
communication shall have been directed, or (b) mailed by certified or
registered mail with postage prepaid, on the third business day after the date
on which it is so mailed:

 

(a)           If
to Indemnitee, at the address indicated on the signature page of this
Agreement, or such other address as Indemnitee shall provide in writing to the
Company.

 

(b)           If
to the Company to:

 

STR Holdings, Inc.

10 Water Street

Enfield, CT 06082

Attention:  Board of Directors

 

or to any other address as may have been furnished to Indemnitee in
writing by the Company.

 

23.           Contribution.  To the fullest extent permissible under
applicable law, if the indemnification provided for in this Agreement is
unavailable to Indemnitee in whole or in part for any reason whatsoever, the
Company, in lieu of indemnifying Indemnitee, shall contribute to the amount
incurred by Indemnitee, whether for judgments, fines, penalties, excise taxes,
amounts paid or to be paid in settlement and/or for Expenses, in connection
with any claim relating to an indemnifiable event under this Agreement, in such
proportion as is deemed fair and reasonable in light of all of the
circumstances of such Proceeding in order to reflect (i) the relative
benefits received by the Company and Indemnitee as a result of the event(s) and/or
transaction(s) giving cause to such Proceeding; and (ii) the relative
fault of the Company (and its 

 

13

 

directors, officers, employees and agents) and
Indemnitee in connection with such event(s) and/or transaction(s).

 

24.           Applicable Law and Consent to Jurisdiction.  This Agreement and the legal
relations among the parties shall be governed by, and construed and enforced in
accordance with, the laws of the State of Delaware, without regard to its
conflict of laws rules.  Except with
respect to any arbitration commenced by Indemnitee pursuant to Section 14(a) hereof,
the Company and Indemnitee hereby irrevocably and unconditionally (i) agree
that any action or proceeding arising out of or in connection with this
Agreement shall be brought only in the Chancery Court of the State of Delaware
(the “Court”), and not in any other state or federal court in the United
States of America or any court in any other country, (ii) consent to
submit to the exclusive jurisdiction of the Court for purposes of any action or
proceeding arising out of or in connection with this Agreement, (iii) waive
any objection to the laying of venue of any such action or proceeding in the
Court, and (iv) waive, and agree not to plead or to make, any claim that
any such action or proceeding brought in the Court has been brought in an
improper or inconvenient forum.

 

25.           Counterparts.  This Agreement may be executed in two or more
counterparts, each of which shall for all purposes be deemed to be an original
but all of which together shall constitute one and the same Agreement.  Only one such counterpart signed by the party
against whom enforceability is sought needs to be produced to evidence the
existence of this Agreement.

 

26.           Miscellaneous.  Use of the masculine pronoun shall be deemed
to include usage of the feminine pronoun where appropriate.  The headings of the paragraphs of this
Agreement are inserted for convenience only and shall not be deemed to constitute
part of this Agreement or to affect the construction thereof.

 

[Remainder of this
page intentionally left blank.]

 

14

 

	
  CONFIDENTIAL

  	
   

  	
   

  

 

 

IN WITNESS WHEREOF, the
parties have caused this Agreement to be signed as of the day and year first
above written.

 

 

	
  STR HOLDINGS, INC.

  	
   

  	
  INDEMNITEE

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
  Name:

  
	
  Title:

  	
   

  	
   

  	
  Address:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00163-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00163-of-00352.parquet"}]]