Document:

exv10w38

 

Exhibit 10.38

FINAL

MASSACHUSETTS TECHNOLOGY PARK CORPORATION

PROJECT GRANT AGREEMENT

This Project Grant Agreement (the “Agreement”) dated as of November 20, 2007, is entered into
between the Massachusetts Technology Park Corporation doing business as the Massachusetts
Technology Collaborative (“MTC”), an independent public instrumentality of the Commonwealth of
Massachusetts and the administrator of the Massachusetts Renewable Energy Trust Fund (the “Trust”),
having its principal office and place of business at 75 North Drive, Westborough, Massachuetts
01581, and Evergreen Solar, Inc., a Delaware corporation, with a principal place of business at 138
Bartlett Street, Marlborough, Massachusetts 01752 (“Grantee”) (MTC and Grantee collectively as the
“Parties”).

Whereas, MTC as administrator of the Trust is offering financial assistance to Grantee in the form
of a grant to help defray the costs incurred by Grantee in the design and construction of an
approximately Two Hundred and Fifty Thousand (250,000) square foot solar panel manufacturing
facility (the “Project”) on publicly owned land in Devens, Massachusetts (the “Premises”);

Whereas, MTC’s provision of such grant funds for use on the Project is consistent with the
statutory goals set forth in M.G.L. c.40J, and the Trust’s Direction Statement and Operating Plan,
and is expected to lead to substantial economic development activity in the Commonwealth, including
without limitation the retention and creation of employment, as more fully set forth in the
Agreement and Attachment B; and

Whereas, MTC’s Board of Directors approved the commitment of funds to Grantee for the Project on
June 28, 2007.

Now therefore, pursuant to the terms and conditions of the Agreement, MTC and Grantee agree as
follows:

1. Term and Termination a) The term of this Agreement shall commence on the date that this
Agreement is fully executed by the Parties (the “Effective Date”), and, unless terminated earlier
pursuant to the terms of Section 1(b) and Section 6 (Events of Default), shall expire upon
fulfillment of all Grantee Commitments set forth in Section 8 (Grantee’s Commitments). MTC’s
obligation to disburse Grant proceeds, however, shall expire in any event on the earlier to occur
of (i) the six (6) month anniversary of the date that Grantee has substantially completed the
Project (which shall be the date upon which substantial completion occurs under the construction
contract for the Project, and which is hereinafter referred to as “Substantial Completion”), or
(ii) the last day of the thirty sixth (36th) month after the Effective Date. b) This Agreement may
be terminated by either MTC or Grantee if (i) an Event of Default occurs (including the expiration
of any applicable cure period) and remains outstanding as of the date of termination, (ii) the
party seeking to terminate this Agreement hereunder is the Non-Defaulting Party, and (iii) the
Non-Defaulting Party has not waived such Event of Default in writing.

2. The Grant Subject to the provisions of this Agreement, including without limitation the
provisions of Section 5 (Payments), Section 8 (Grantee Commitments) and Section 9 (Repayment), MTC
shall pay to the Grantee a maximum amount of Ten Million Dollars ($10,000,000) (the “Grant”).

3. Use of Proceeds Grantee hereby covenants and agrees that all Grant funds provided by MTC
pursuant to this Agreement shall be used solely to defray the direct costs incurred by Grantee in
connection with the due diligence, permitting, design and construction of the Project (hereinafter
“Project Costs”), and for no other purpose.

 

 

Project Grant Agreement: Evergreen Solar, Inc.

4. Reporting Upon Grantee’s submission of invoices pursuant to Section 5, Grantee shall
simultaneously provide MTC with a project status report (the “Progress Reports”), which shall
include without limitation (a) a description of completed Project construction milestones, (b) the
stage of the progress on construction of the Project, and (c) the status of Grantee’s meeting and
maintaining the (i) Retained Positions and (ii) New Positions commitments, as defined and more
fully set forth in Section 8; provided that nothing herein shall be deemed to require Grantee to
disclose information that is of a proprietary nature. Grantee’s compliance with Grantee Commitments
(as defined in Section 8) may be subject to continuous assessment by MTC. In furtherance of the
foregoing, Grantee shall provide MTC with annual reports (the “Annual Reports), which shall include
information setting forth Grantee’s compliance with, and/or variances from the Grantee Commitments.
The first Annual Report shall be submitted to MTC within thirty (30) days of the first anniversary
of the Effective Date and each subsequent Annual Report shall be submitted within thirty (30) days
of each subsequent anniversary of the Effective Date. In the case of the Grantee Commitments set
forth in Sections 8(a)-(c), the Annual Report shall include a certification from Grantee’s CEO or
CFO concerning Grantee’s compliance with, and/or variances from the Grantee Commitments.

5. Invoices/Payment Schedule a) Cost Reimbursement. Grantee shall receive advances of Grant funds
on a cost-reimbursement basis for Project Costs actually incurred on a “Pro-Rata” basis with all
other funding types and sources being made available by the Grantee or to Grantee from MTC and
other entities for the design and general construction of the Project, (collectively the “Total
Project Construction Funds”). The Parties acknowledge that the total amount of MTC’s funding for
the Project general construction is Ten Million Dollars ($10,000,000), comprised of the Grant (the
“Total MTC Funds”). For purposes of cost reimbursement from MTC to Grantee under this Agreement,
payment on a “Pro-Rata” basis means that MTC will reimburse on invoices to the extent of the ratio
the Total MTC Funds bear to the Total Project Construction Funds, with MTC paying that Pro-Rata
percentage of Grantee’s Project Costs for the period covering the invoice. The parties acknowledge
that the estimated Project Costs and anticipated sources of the Total Project Construction Funds
are to be determined and certified by the Grantee after the Effective Date and prior to the
submission of the first invoice for cost-reimbursement. For the avoidance of doubt, examples of
MTC’s Pro-Rata payments of Grant funds upon receipt of an invoice are set forth on the attached
Attachment C. Any Grant funds that have not been disbursed to Grantee pursuant to the foregoing
“Pro-Rata” funding process shall be paid to Grantee upon Substantial Completion. b) Invoices.
Grantee may submit invoices for payment using the template provided by MTC. The invoice shall set
forth total Project Costs incurred as of the date of the invoice, broken down into MTC’s Pro Rata
share. Invoices shall provide reasonable supporting documentation to provide evidence of Project
Costs actually incurred. c) Payment Terms. MTC shall pay the Grantee within thirty (30) days after
receipt of a properly documented invoice, unless MTC should determine that any such payment or any
part thereof is otherwise not properly payable pursuant to the terms of this Agreement (in which
case MTC shall make payment with respect to any portion of such invoice that is properly payable).

6. Events of Default For the purposes of this Agreement, a “Defaulting Party” shall mean any party
hereto against which the other party hereto is entitled to assert an Event of Default under this
Section 6 and a “Non- Defaulting Party” shall mean with respect to the occurrence of any Event of
Default (as defined below), the party to this Agreement that is not the Defaulting Party in
connection with such Event of Default. For purposes of this Agreement “Event of Default” shall mean
any of the following: a) Failure by the Defaulting Party to make, when due, any payment or
repayment required under this Agreement if such failure is not remedied within thirty (30) calendar
days after written notice of such failure is given by the other party and provided the payment or
repayment is not the subject of a continuing good faith dispute; b) Material breach of any of the
Defaulting Party’s obligations contained in this Agreement, including without limitation the
obligations set forth in Section 8(a)-(e), which breaches are not excused by Force Majeure (as
defined in Section 16) or cured within thirty (30) calendar days after written notice thereof is
provided to the Non-Defaulting Party; c) Any circumstance: (i) in which the Defaulting Party makes
a general assignment for the benefit of creditors as a symptom of impending bankruptcy,

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(ii) in which the Defaulting Party files a petition or otherwise commences, authorizes or consents
to the commencement of a proceeding or cause of action under any bankruptcy or similar law for the
protection of creditors, or where such a petition is filed against Defaulting Party and is not
stayed, withdrawn or dismissed within sixty (60) days after such filing, (iii) in which a court of
competent jurisdiction shall determine that Defaulting Party is generally not paying its debts as
such debts become due, or (iv) which results in the Defaulting Party’s insolvency or its admission
that it is unable to pay its debts generally as they become due; d) The Defaulting Party’s failure
to perform any material covenant or obligation set forth in this Agreement, and such failure is not
excused by Force Majeure or cured within thirty (30) calendar days after written notice thereof is
provided to the Non-Defaulting Party; and e) Default by the Grantee under the terms of any loan to
Grantee MTC has made or participated in (an “MTC Loan”) which default is not cured within any
applicable grace period shall be an Event of Default hereunder with Grantee as the Defaulting
Party. In addition to any other remedy available to it under this Agreement or under applicable
law, upon any occurrence of an Event of Default, the Non-Defaulting Party shall be entitled to
suspend performance of its obligations under this Agreement until the earlier of such time as (a)
such Event of Default has been cured, or (b) the Non-Defaulting Party has elected to terminate this
Agreement pursuant to Section 1(b). The Non-Defaulting Party may, in addition to such suspension
and/or termination, initiate proceedings for an assessment of damages payable to the Non-Defaulting
Party resulting from such Event of Default and/or seek any other remedies available to the
Non-Defaulting Party either at law or in equity; provided that MTC’s remedies (in addition to such
suspension and/or termination) upon an Event of Default by Grantee shall be limited to the right to
enforce the repayment and forfeiture provisions as specified in Section 9 below. Neither the
preceding sentence nor any other provision of this Agreement shall restrict or otherwise limit
MTC’s rights under any agreements entered into with Grantee in conjunction with an MTC Loan,
including without limitation any rights to demand or accelerate repayment of any funds provided to
Grantee under an MTC Loan.

7. Assignment Grantee’s rights and restrictions on the assignment or any form of transfer of any of
Grantee’s interest in the Grant or this Agreement (including without limitation by merger, sale of
assets or corporate reorganization) shall be governed by the same terms and conditions permitting
and/or restricting assignments of Grantee’s leasehold interest as set forth in Article 10 of that
certain Ground Lease entered into by and between Grantee and the Massachusetts Development Finance
Agency (“MassDevelopment”), dated November 2007.

8. Grantee’s Commitments Grantee acknowledges that the Grant is conditioned on Grantee’s meeting
and maintaining the following commitments (collectively the “Grantee Commitments”), and Grantee
therefore agrees and covenants that it shall: a) Maintain a general business presence in
Massachusetts for a period of five (5) years, commencing on Substantial Completion. For purposes of
this Agreement, Grantee shall be deemed to be maintaining a general business presence in
Massachusetts so long as Grantee maintains its corporate headquarters, its primary United States
based research and development operations, and its primary United States based manufacturing
operations in Massachusetts. b) (i) create 350 net new jobs in Massachusetts within two (2) years
of the Effective Date (the “New Positions”), (ii) maintain the New Positions in Massachusetts over
the immediately subsequent five (5) year period, and (iii) retain at least 310 of its existing jobs
in Massachusetts (the “Retained Positions”) for a seven (7) year period commencing on the Effective
Date. For purposes of this Agreement, the term “job” (wherever it may appear in this Agreement,
either on its own, in a defined term, in upper or lower case) means a Massachusetts-based full-time
equivalent employee on Grantee’s payroll; c) Employ a preference to use Massachusetts-based
contractors in the construction of the Project, but Grantee shall not be required to employ a
certain quota or percentage of Massachusetts based contractors. On or within 30 days of the
Effective Date of this Agreement, Grantee will present MTC with a preliminary list of possible
construction contractors, which may be modified from time to time during the Project by the
Grantee, and provided that nothing herein shall be deemed to require MTC’s approval of any
contractors; d) Employ a preference for equipment manufactured or assembled by Massachusetts
companies, but Grantee shall not be obligated to purchase any quota or percentage of equipment from
Massachusetts companies. On or within 30 days of the

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Effective Date of this Agreement, Grantee will present MTC with a preliminary list of possible
equipment manufacturers, which may be modified from time to time during the Project by the Grantee,
and provided that nothing herein shall be deemed to require MTC’s approval of any equipment
manufacturers; and e) Not be or become a “Prohibited Person.” For the purposes of this Agreement a
“Prohibited Person” is any person or entity which is, or in which a direct or indirect owner of 10%
or more of the beneficial interest is, (X) in breach or violation of a written contract with the
Commonwealth or MTC as to which more than $5,000,000 is at issue and the entity is not contesting
the breach or violation or the Commonwealth or MTC has obtained at least an initial finding or
determination in its favor which has not been overruled as to the principal matter at issue from a
court, arbitrator or other tribunal with jurisdiction, (Y) delinquent to the extent of $1,000,000
or more in the payment of any state or local taxes assessed by or in the Commonwealth or (Z) a
person or entity as to which it is illegal for MTC to do business with under state or federal law.
Notwithstanding the foregoing, however, the acquisition of 10% or more of the stock of the Grantee
on a recognized stock exchange or in the open market without the intervention, support or consent
of the Grantee shall not cause Grantee to be or become a Prohibited Person.

9. Repayment Provisions a) Grantee acknowledges and agrees that it shall repay the full amount of
the Grant (without interest), excluding any theretofore “Earned Amounts” (as that term is defined
in Section 9(b)(ii) below and used in the examples set forth on Exhibit B), if it fails to comply
with the Grantee Commitments set forth in Section 8(a), such repayment to be due and payable to MTC
within thirty (30) days of Grantee’s receipt of written notice from MTC demanding such repayment
due to Grantee’s failure to comply. b) (i) Grantee shall have eight (8) years following the
Effective Date to create 2,300 new “Job Years.” A “Job Year” shall be defined as each Job (as
defined in Section 8(b)) that was created during the year in excess of the number of “Baseline
Jobs” multiplied by the number of weeks the job existed divided by 50. The term “Baseline Jobs”
shall mean Three Hundred and Ten (310) jobs. Grantee shall submit to MTC, within thirty (30) days
of each annual anniversary of the Effective Date, a Job Years Assessment Report containing
information demonstrating the number of Job Years created as of each annual anniversary of the
Effective Date. (ii) For each new Job Year created (each an “Actual Job Year” and collectively the
“Actual Job Years”), Grantee shall be deemed to have earned a portion of the Grant in an amount
equal to Four Thousand Three Hundred Forty Eight Dollars ($4,348.00) (the “Earned Amount”), and in
an aggregate Actual Job Years amount not to exceed Ten Million Dollars ($10,000,000). All Earned
Amounts shall not be subject to forfeiture. (iii) In the event that the number of Actual Job Years
created on any annual anniversary of the Effective Date is less than the number of Targeted Job
Years Created, as that term is set forth and applied in Attachment B for such annual anniversary
date, Grantee shall forfeit to MTC a portion of the Grant in an amount equal to Four Thousand Three
Hundred Forty Eight Dollars ($4,348.00) multiplied by the difference between (A) the number of
Targeted Job Years Created as specified in Attachment B for such annual anniversary date and (B)
the number of Actual Job Years created by such annual anniversary date (the “Forfeiture Amount”).
Grantee shall pay MTC any Forfeiture Amount within thirty days of Grantee’s receipt of written
notification from MTC, provided that any Forfeiture Amount due hereunder on account of the number
of Actual Job Years created within the first two (2) annual anniversaries of the Effective Date
shall be deferred and paid upon the first day of the third (3rd) year after the Effective Date and
in no case shall the total Forfeiture Amount exceed $10 million less any previously earned amounts.
In addition, Grantee shall not be obligated to pay any Forfeiture Amount or otherwise repay any of
the Grant funds after such time as the Grantee has achieved the creation of 2,300 Job Years, as set
forth on Attachment B. (iv) Notwithstanding the foregoing, in the event that a Forfeiture Amount is
determined to be payable hereunder, and in any subsequent annual period the number of Actual Job
Years created by any annual anniversary of the Effective Date exceeds the number of Targeted Job
Years Created by such annual anniversary date, MTC shall re-pay Grantee a portion of the Forfeiture
Amount in an amount equal to Four Thousand Three Hundred Forty Eight Dollars ($4,348.00) multiplied
by the number of Actual Job Years created by such annual anniversary date in excess of the Targeted
Job Years Created by such annual anniversary date (the “Re-Payment Amount”). Furthermore, in the
event Grantee achieves on a cumulative basis the creation of 2300 Job Years on or before

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the last day of the 8th year after the Effective Date, MTC shall pay back to Grantee any and all
Forfeiture Amounts previously paid by Grantee to MTC (the “True-Up Amount”). Any Re-Payment Amount
and/or True-Up Amount shall not exceed the aggregate of all Forfeiture Amounts previously paid by
Grantee to MTC. MTC shall re-pay Grantee any Re-Payment Amount and/or True-Up Amount within thirty
days of MTC’s receipt of written notification from Grantee. c) All of the provisions of the
foregoing Section 9(b) notwithstanding, Grantee shall not be required to pay any Forfeiture Amount
or otherwise repay any of the Grant funds to MTC due to any failure to fulfill Grantee Commitments
that directly result from an event of Force Majeure as defined in Section 16, and Grantee shall
have the right at any time to apply to MTC for full or partial waiver or modification or extension
of time to meet Grantee Commitments. Any decision to waive, modify or extend such time frames shall
be in the sole exercise of MTC’s discretion. d) In the event Grantee becomes a Prohibited Person as
defined in Section 8(e), MTC may declare an Event of Default hereunder and cease making any further
Grant advances and any MTC Loan shall be deemed to be in default and MTC may exercise any other
remedies available to it under the MTC Loan agreement.

10. Nondiscrimination The Grantee agrees to comply with all applicable Federal and State statutes,
rules and regulations promoting fair employment practices or prohibiting employment discrimination
and unfair labor practices and shall not discriminate in the hiring of any applicant for employment
nor shall any qualified employee be demoted, discharged or otherwise subject to discrimination in
the tenure, position, promotional opportunities, wages benefits or terms and conditions of their
employment because of race, color, national origin, ancestry, age, sex, religion, disability,
handicap, sexual orientation, or for exercising any rights afforded by law.

11. Indemnification and Insurance a) To the fullest extent permitted by law, Grantee shall
indemnify and hold harmless the Commonwealth, MTC, and each of their respective agents, officers,
directors and employees (together with the Commonwealth and MTC, the “Covered Persons”) from and
against any and all liability, loss, claims, damages, fines, penalties, costs and expenses
(including reasonable attorney’s fees), judgments and awards (collectively, “Damages”) sustained,
incurred or suffered by or imposed upon any Covered Person resulting from (i) any breach of this
Agreement, or (ii) any negligent acts or omissions or reckless misconduct of Grantee in connection
with construction of the Project or otherwise. Without limiting the foregoing, Grantee shall
indemnify and hold harmless each Covered Person against any and all Damages that may arise out of
or are imposed because of the failure to comply with the provisions of applicable law by Grantee or
any of its agents, officers, directors, employees or subcontractors. The foregoing notwithstanding,
Grantee shall not be liable for (i) any Damages sustained, incurred or suffered by or imposed upon
any Covered Person resulting from any negligent acts or omissions or reckless misconduct of the
Commonwealth or MTC or any other Covered Person, and (ii) except for liability for death or
personal injury caused by the negligence or willful misconduct of the Grantee or its agents,
including without limitation its contractor for construction of the Project, or for claims of
infringement of a third party’s intellectual property by Grantee, the aggregate liability of
Grantee under this Agreement shall not exceed the greater of the amount of the Grant or the amount
recovered under any applicable insurance coverage. b) In no event shall either party be liable for
any indirect, incidental, special or consequential damages whatsoever (including but not limited to
lost profits or interruption of business), whether arising out of or related to Grantee’s
construction of the Project under this Agreement or otherwise. Notwithstanding the foregoing, the
parties acknowledge and agree that MTC as a public entity has an overriding policy of not providing
financial or other assistance of any kind from its limited public resources to Prohibited Persons
for any period of time. The parties agree and stipulate that any forfeiture of Grantee’s right to
receive additional disbursements of Grant funds to the extent provided for herein if Grantee should
voluntarily be or become a Prohibited Person is reasonable in light of the irreparable harm MTC
would suffer. c) Grantee hereby agrees to maintain a program of insurance and/or self-insurance
which is prudent and adequate to address any claim or liability which may arise out of Grantee’s
construction of the Project and performance of its obligations pursuant to this Agreement.

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12. Public Records As a public entity, MTC is subject to the Massachusetts Public Records Law (set
forth at Massachusetts General Laws Chapter 66) and thus documents and other materials made or
received by MTC and/or its employees are subject to public disclosure. All information received by
MTC shall be deemed to be subject to public disclosure, except as otherwise provided in the
procedures set forth in Attachment A hereto. By signing this Agreement, Grantee acknowledges,
understands and agrees that the procedures set forth in Attachment A are applicable to any
documents submitted by Grantee to MTC, including but not limited to any acknowledgements set forth
therein, and that Grantee shall be bound by these procedures.

13. Document Review Rights MTC will have the right to review Grantee’s or its other agents’ records
to the extent necessary to confirm that Grantee is in compliance with the Use of Proceeds
provision, at any time from the Effective Date through the end of the Retention Period, as defined
below herein, provided that nothing herein shall be deemed to permit MTC to review any records that
contain information of a proprietary nature to Grantee. If such review reveals that any portion of
the Grant was utilized for purposes not permitted under this Agreement, then Grantee shall refund
to MTC the amount determined by such review within thirty (30) days of Grantee’s receipt of such
demand. Grantee shall maintain books, records, and other compilations of data pertaining to the
Grant payments made under this Agreement to the extent and in such detail as shall properly
substantiate use of such payments. All such records shall be kept for a period commencing on the
Effective Date and terminating seven (7) years after payment of the final advance of Grant proceeds
under this Agreement (the “Retention Period”). If any litigation, claim, negotiation, audit or
other action involving the records is commenced prior to the expiration of the Retention Period,
all records shall be retained until completion of the audit or other action and resolution of all
issues resulting therefrom, or until the end of the Retention Period, whichever is later. MTC or
the Commonwealth or any of their duly authorized representatives shall have the right at reasonable
times and upon reasonable notice, to examine and copy at reasonable expense, the books, records,
and other compilations of data of the Grantee which pertain to the Project and/or the provisions
and requirements of this Agreement from the Effective Date through the end of the Retention Period.
Such access may include on-site audits, review and copying of records.

14. Lobbying No Grant funds may be used to pay for or otherwise support any activities intended to
influence any matter pending before the Massachusetts General Court or for activities covered by
the law and regulations governing “legislative agents” or “executive agents” set forth in the
Massachusetts Lobbying Law, M.G.L. c.3, §39.

15. Choice of Law This Agreement shall be construed under, and governed by, the laws of the
Commonwealth of Massachusetts, without giving effect to its conflict of laws principles. The
Grantee agrees to bring any Federal or State legal proceedings arising under this Grant in which
the Commonwealth or MTC is a party in a court of competent jurisdiction within the Commonwealth of
Massachusetts. This Section shall not be construed to limit any other legal rights of the parties.

16. Force Majeure Neither party shall be liable to the other, or be deemed to be in breach of this
Agreement for any failure or delay in rendering performance arising out of causes beyond its
reasonable control and without its fault or negligence (“Force Majeure”). Such causes may include,
but are not limited to, acts of God or of a public enemy (including terrorist attacks), fires,
floods, epidemics, quarantine restrictions, freight embargoes, or unusually severe weather. Except
as otherwise provided in this Agreement, dates or times of performance, including limits set on
making advances of Grant funds, shall be extended to the extent of delays excused by Force Majeure,
provided that the party whose performance is affected notifies the other promptly in writing of the
existence and nature of such delay. Nothing in this Section 16 shall be deemed to apply to MTC’s
obligation to advance Grant funds as and when due pursuant to the terms of Section 5 of this
Agreement.

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17. Waivers Conditions, covenants, duties and obligations contained in this Agreement may be waived
only by written agreement between the parties. Forbearance or indulgence in any form or manner by a
party shall not be construed as a waiver, nor in any way limit the remedies available to that
party.

18. Notice Any notice under this Agreement shall be in writing and shall be sent either (i) by
facsimile, (ii) by courier, or (iii) by first class mail, postage, prepaid, to the address as set
forth below (or to such other address as a party may provide by notice to the party pursuant to
this Section), and shall be effective (i) if dispatched by facsimile and delivery is electronically
confirmed by said media, the day such electronic confirmation is received, (ii) if sent by courier,
one business day after dispatch, (iii) if sent by first class mail, five business days after its
date of posting. The address for such notice for each party is as follows:

If to MTC: Massachusetts Technology Collaborative 75 North Drive Westborough, MA 01581 508/870-0312
(phone) 508/898-2275 (fax) Attn: Jeanne M. Napolitano, Grants & Contracts Administrator
(napolitano@masstech.org)

If to Grantee: Evergreen Solar, Inc. 138 Bartlett Street Marlborough, MA 01752 508/357-2221 (phone)
508/.229.0747 (fax) Attn:

19. Amendments, Entire Agreement and Attachments All conditions, covenants, duties and obligations
contained in the Agreement may be amended only through a written amendment signed by the parties.
The parties understand and agree that this Agreement supersedes all other verbal and written
agreements and negotiations by the parties regarding the matters contained herein. The following
are attached and incorporated into this Agreement:

i. Attachment A – MTC’s Sensitive Information Policy and Procedures

ii. Attachment B – Jobs Target Schedule

iii. Attachment C – Pro-Rata Payment Calculation

	 	 	 
	The Massachusetts Technology Park Corporation
	 	 
	d/b/a Massachusetts Technology Collaborative

	 	Evergreen Solar, Inc.
	 
	 	 
	By:

	 	By:
	Name: Mitchell Adams

	 	Name:
	Title: Executive Director

	 	Title:
	Date:

	 	Date:

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Project Grant Agreement: Evergreen Solar, Inc.

Attachment A

The Massachusetts
Technology Collaborative Policy And Procedures 
Regarding Submission Of “Sensitive
Information”

The Massachusetts Technology Collaborative, the Massachusetts Renewable Energy Trust which it
administers, and John Adams Innovation Institute (collectively referred to herein as “MTC”) are
subject to the requirements concerning disclosure of public records under the Massachusetts Public
Records Act, M.G.L. c. 66 (the “Public Records Act”), which governs the retention, disposition and
archiving of public records. For purposes of the Public Records Act, “public records” include all
books, papers, maps, photographs, recorded tapes, financial statements, statistical tabulations, or
other documentary materials or data, regardless of physical form or characteristics, made or
received by MTC. As a result, any information submitted to MTC by a grant applicant, recipient
grantee, respondent to a request for response (including, but not limited to an RFQ, RFP and RFI),
contractor, or any other party (collectively the “Submitting Party”) is subject to public
disclosure as set forth in the Public Records Act.

The foregoing notwithstanding, “public records” do not include certain materials or data which fall
within one of the specifically enumerated exemptions set forth in the Public Records Act or in
other statutes, including MTC’s enabling act, M.G.L. Chapter 40J. One such exemption that may be
applicable to documents submitted by a Submitting Party is for any documentary materials or data
made or received by MTC that consists of trade secrets or commercial or financial information
regarding the operation of any business conducted by the Submitting Party, or regarding the
competitive position of such Submitting Party in a particular field of endeavor (the “Trade Secrets
Exemption”).

It is MTC’s
expectation and belief that the overwhelming percentage of documents it receives from a
Submitting Party does not contain any information that would warrant an assertion by MTC of an
exemption from the Public Records Act. Submitting Parties should therefore take care in determining
which documents they submit to MTC, and should assume that all documents submitted to MTC are
subject to public disclosure without any prior notice to the
Submitting Party and without resort to any formal public records request.

In the event that a Submitting Party wishes to submit certain documents to MTC and believes such a
document or documents may be proprietary in nature and may fall within the parameters of the Trade
Secrets Exemption and/or some other applicable exemption, the following procedures shall apply:

1. At the time of the Submitting Party’s initial submission of documents to MTC, the Submitting
Party must provide a cover letter, addressed to MTC’s General Counsel, indicating that it is
submitting documents which it believes are exempt from public disclosure, including a description
of the specific exemption(s) that the Submitting Party contends is/are applicable to the submitted
materials, a precise description of the type and magnitude of harm that would result in the event
of the documents’ disclosure, and a specific start date and end date within which the claimed
exemption applies. If different exemptions, harms and/or dates apply to different documents, it is
the Submitting Party’s responsibility and obligation to provide detailed explanations for each such
document.

2. At the time of the Submitting Party’s initial submission of documents to MTC, the Submitting
Party must also clearly and unambiguously identify each and every such document that it contends is
subject to an exemption from public disclosure as “Sensitive Information.” It is the Submitting
Party’s responsibility and obligation to ensure that all such documents are sufficiently identified
as “Sensitive Information,” and Submitting Party’s designation must be placed in a

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prominent location on the face of each and every document that it contends is exempt from
disclosure under the Public Records Act.

Information
Submitted to MTC in any form other than a hard copy document will not be subject to the
procedures set forth in this Policy. For example, information submitted by e-mail, facsimile and/or
verbally will not be subject to these procedures and may be disclosed at any time without notice to
the Submitting Party.

3. Documents that are not accompanied by the written notification to MTC’s General Counsel or are
not properly identified by the Submitting Party as “Sensitive Information” at the time of their
initial submission to MTC are presumptively subject to disclosure under the Public Records Act, and
the procedures for providing the Submitting Party with notice of any formal public records request
for documents, as set forth below, shall be inapplicable.

4. At the time MTC receives documents from the Submitting Party, any such documents designated by
Submitting Party as “Sensitive Information” shall be segregated and stored in a secure filing area
when not being utilized by appropriate MTC staff. By submitting a grant application, request for
response, or any other act that involves the submission of information to MTC, the Submitting Party
certifies, acknowledges and agrees that (a) MTC’s receipt, segregation and storage of documents
designated by Submitting Party as “Sensitive Information” does not represent a finding by MTC that
such documents fall within the Trade Secrets Exemption or any other exemption to the Public Records
Act, or that the documents are otherwise exempt from disclosure under the Public Records Act, and
(b) MTC is not liable under any circumstances for the subsequent disclosure of any information
submitted to MTC by the Submitting Party, whether or not such documents are designated as
“Sensitive Information” or MTC was negligent in disclosing such documents.

5. In the event that MTC receives an inquiry or request for information submitted by a Submitting
Party, MTC shall produce all responsive information without notice to the Submitting Party. In the
event that the inquiry or request entails documents that the Submitting Party has previously
designated as “Sensitive Information” in strict accordance with this Policy, the inquiring party
shall be notified in writing that one or more of the documents it has requested has been designated
by the Submitting Party as “Sensitive Information”, and, if not already submitted, that a formal,
written public records request must be submitted by the requesting party to MTC’s General Counsel
for a determination of whether the subject documents are exempt from disclosure.

6. Upon the General Counsel’s receipt of a formal, written public records request for information
that encompass documents previously designated by Submitting Party as “Sensitive Information”, the
Submitting Party shall be notified in writing of MTC’s receipt of the public records request, and
MTC may, but shall not be required to provide Submitting Party an opportunity to present MTC with
information and/or legal arguments concerning the applicability of the Trade Secrets Exemption or
some other exemption to the subject documents. 7. The General Counsel shall review the subject
documents, the Public Records Act and the exemption(s) claimed by the Submitting Party in making a
determination concerning their potential disclosure.

The General
Counsel is the sole authority within MTC for making determinations on the applicability
and/or assertion of an exemption to the Public Records Act. No employee of MTC other than the
General Counsel has any authority to address issues concerning the status of “Sensitive
Information” or to bind MTC in any manner concerning MTC’s treatment and disclosure of such
documents. Furthermore, the potential applicability of an exemption to the disclosure of documents
designated by the Submitting Party as “Sensitive Information” shall not require MTC to assert such
an exemption. MTC’s General Counsel retains the sole discretion and authority to assert an
exemption, and he may decline to exert such an exemption if, within his discretion, the public
interest is served by the disclosure of any documents submitted by
the Submitting Party.

Page 9

 

Project Grant Agreement: Evergreen Solar, Inc.

8. MTC shall provide the requesting party and Submitting Party with written notice of its
determination that the subject documents are either exempt or not exempt from disclosure. 9. In the
event that MTC determines that the subject documents are exempt from disclosure, the requesting
party may seek review of MTC’s determination before the Supervisor of Public Records, and MTC shall
notify the Submitting Party in writing in the event that the requesting party pursues a review of
MTC’s determination.

10. In the event the requesting party pursues a review of MTC’s determination that the documents
are exempt from disclosure and the Supervisor of Public Records concludes that the subject
documents are not exempt from disclosure and orders MTC to disclose such documents to the
requester, MTC shall notify the Submitting Party in writing prior to the disclosure of any such
documents, and Submitting Party may pursue injunctive relief or any other course of action in its
discretion.

11. In the event that MTC determines that the subject documents are not exempt from disclosure or
the General Counsel determines that, under the circumstances and in his discretion, MTC shall not
assert an exemption, MTC shall notify the Submitting Party in writing prior to the disclosure of
any such documents, and Submitting Party may pursue injunctive relief or any other course of action
in its discretion.

The Submitting
 Party’s submission of documentation to MTC shall require a signed certification that
Submitting Party acknowledges, understands and agrees with the applicability of the foregoing
procedures to any documents submitted to MTC by Submitting Party at any time, including but not
limited to the acknowledgements set forth herein, and that Submitting Party shall be bound by these
procedures.

All documents submitted by Submitting Party, whether designated as “Sensitive Information” or not,
are not returnable to Submitting Party.

Page 10

 

Project Grant Agreement: Evergreen Solar, Inc.

Attachment B

Evergreen Grant Analysis

See Attached

Page 11

 

Evergreen — Grant Analysis

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Job-Years if
	Year	 	Target	 	Target Achieved
	1
	 	 	360	 	 	 	50	 
	2
	 	 	510	 	 	 	200	 
	3
	 	 	610	 	 	 	300	 
	4
	 	 	660	 	 	 	350	 
	5
	 	 	660	 	 	 	350	 
	6
	 	 	660	 	 	 	350	 
	7
	 	 	660	 	 	 	350	 
	8
	 	 	660	 	 	 	350	 
	 
	 	 	 	 	 	 	 	 
	Total Job Years
	 	 	 	 	 	 	2300	 
	 
	 	 	 	 	 	 	 	 
	Grant Amount
	 	 	 	 	 	$	10,000,000	 
	Amount per Job Year
	 	 	 	 	 	$4,348	 GrantAmount/JobYears
	Baseline Jobs (to be retained)
	 	 	 	 	 	 	310	 

EXAMPLES

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Year	 	1	 	 	2	 	 	3	 	 	4	 	 	5	 	 	6	 	 	7	 	 	8	 	 	Total	 
	Example 1
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Actual Job Years Reported
	 	 	660	 	 	 	660	 	 	 	800	 	 	 	800	 	 	 	750	 	 	 	750	 	 	 	750	 	 	 	750	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Targeted Job Years Created Above Baseline
	 	 	50	 	 	 	200	 	 	 	300	 	 	 	350	 	 	 	350	 	 	 	350	 	 	 	350	 	 	 	350	 	 	 	2300	 
	Less Actual Job Years Created Above Baseline
	 	 	350	 	 	 	350	 	 	 	490	 	 	 	490	 	 	 	440	 	 	 	440	 	 	 	440	 	 	 	440	 	 	 	3440	 
	 	 	 
	Variance from Target
	 	 	300	 	 	 	150	 	 	 	190	 	 	 	140	 	 	 	90	 	 	 	90	 	 	 	90	 	 	 	90	 	 	 	1140	 
	 	 	 
	 
	Job Years Earned (not to exceed 2,300)
	 	 	350	 	 	 	350	 	 	 	490	 	 	 	490	 	 	 	440	 	 	 	180	 	 	 	0	 	 	 	0	 	 	 	 	 
	Cumulative Job Years Earned
	 	 	350	 	 	 	700	 	 	 	1190	 	 	 	1680	 	 	 	2120	 	 	 	2300	 	 	 	2300	 	 	 	2300	 	 	 	 	 
	 
	Job Years Forfeited
	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	 	 
	Cumulative Job Years Forfeited
	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	 	 
	 
	Earnings
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Actual Job Years Earned
	 	 	350	 	 	 	350	 	 	 	490	 	 	 	490	 	 	 	440	 	 	 	180	 	 	 	—	 	 	 	—	 	 	 	2,300	 
	Multiplied by Amount/Job Year
	 	 $	4,348	 	 	 $	4,348	 	 	 $	4,348	 	 	 $	4,348	 	 	 $	4,348	 	 	 $	4,348	 	 	 $	4,348	 	 	 $	4,348	 	 	 $	4,348	 
	 	 	 
	Total Earned Amount
	 	 $	1,521,739	 	 	 $	1,521,739      	 	 	 $	2,130,435	 	 	 $	2,130,435	 	 	 $	1,913,043	 	 	 $	782,609	 	 	 $	0	 	 	 $	0	 	 	 $	10,000,000	 
	 	 	 
	 
	Forfeitures*
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Job Years Forfeited
	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 
	Multiplied by Amount/Job Year
	 	 $	4,348	 	 	 $	4,348	 	 	 $	4,348	 	 	 $	4,348	 	 	 $	4,348	 	 	 $	4,348	 	 	 $	4,348	 	 	 $	4,348	 	 	 $	4,348	 
	 	 	 
	Total Forfeited Amount
	 	 $	0	 	 	 $	0	 	 	 $	0	 	 	 $	0	 	 	 $	0	 	 	 $	0	 	 	 $	0	 	 	 $	0	 	 	 $	0	 
	 	 	 
	 
	Cumulative Earned Amount
	 	 $	1,521,739	 	 	 $	3,043,478      	 	 	 $	5,173,913	 	 	 $	7,304,348	 	 	 $	9,217,391	 	 	 $	10,000,000	 	 	 $	10,000,000	 	 	 $	10,000,000	 	 	 	 	 
	Cumulative Forfeited Amount
	 	 $	0	 	 	 $	0	 	 	 $	0	 	 	 $	0	 	 	 $	0	 	 	 $	0	 	 	 $	0	 	 	 $	0	 	 	 	 	 

 

			
	*	 	NOTE: A positive forfeiture amount indicates a previously forfeited amount that MTC will return
to Evergreen

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Example 2
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Actual Job Years Reported
	 	 	310	 	 	 	400	 	 	 	510	 	 	 	600	 	 	 	660	 	 	 	670	 	 	 	700	 	 	 	700	 	 	 	 	 
	 
	Targeted Job Years Created Above Baseline
	 	 	50	 	 	 	200	 	 	 	300	 	 	 	350	 	 	 	350	 	 	 	350	 	 	 	350	 	 	 	350	 	 	 	2300	 
	Less Actual Job Years Created Above Baseline
	 	 	0	 	 	 	90	 	 	 	200	 	 	 	290	 	 	 	350	 	 	 	360	 	 	 	390	 	 	 	390	 	 	 	2070	 
	 	 	 
	Variance from Target
	 	 	-50	 	 	 	-110	 	 	 	-100	 	 	 	-60	 	 	 	0	 	 	 	10	 	 	 	40	 	 	 	40	 	 	 	-230	 
	 	 	 
	 
	Job Years Earned (not to exceed 2,300)
	 	 	0	 	 	 	90	 	 	 	200	 	 	 	290	 	 	 	350	 	 	 	360	 	 	 	390	 	 	 	390	 	 	 	 	 
	Cumulative Job Years Earned
	 	 	0	 	 	 	90	 	 	 	290	 	 	 	580	 	 	 	930	 	 	 	1290	 	 	 	1680	 	 	 	2070	 	 	 	 	 
	 
	Job Years Forfeited
	 	 	-50	 	 	 	-110	 	 	 	-100	 	 	 	-60	 	 	 	0	 	 	 	10	 	 	 	40	 	 	 	40	 	 	 	 	 
	Cumulative Job Years Forfeited
	 	 	-50	 	 	 	-160	 	 	 	-260	 	 	 	-320	 	 	 	-320	 	 	 	-310	 	 	 	-270	 	 	 	-230	 	 	 	 	 
	 
	Earnings
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Actual Job Years Earned
	 	 	—	 	 	 	90	 	 	 	200	 	 	 	290	 	 	 	350	 	 	 	360	 	 	 	390	 	 	 	390	 	 	 	2,070	 
	Multiplied by Amount/Job Year
	 	 $	4,348	 	 	 $	4,348	 	 	 $	4,348	 	 	 $	4,348	 	 	 $	4,348	 	 	 $	4,348	 	 	 $	4,348	 	 	 $	4,348	 	 	 $	4,348	 
	 	 	 
	Total Earned Amount
	 	 $	0	 	 	 $	391,304	 	 	 $	869,565	 	 	 $	1,260,870	 	 	 $	1,521,739	 	 	 $	1,565,217	 	 	 $	1,695,652	 	 	 $	1,695,652	 	 	 $	9,000,000	 
	 	 	 
	 
	Forfeitures*
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Job Years Forfeited
	 	 	(50	)	 	 	(110	)	 	 	(100	)	 	 	(60	)	 	 	—	 	 	 	10	 	 	 	40	 	 	 	40	 	 	 	(230	)
	Multiplied by Amount/Job Year
	 	 $	4,348	 	 	 $	4,348	 	 	 $	4,348	 	 	 $	4,348	 	 	 $	4,348	 	 	 $	4,348	 	 	 $	4,348	 	 	 $	4,348	 	 	 $	4,348	 
	 	 	 
	Total Forfeited Amount
	 	-$	217,391	 	 	-$	478,261	 	 	-$	434,783	 	 	-$	260,870	 	 	 $	0	 	 	 $	43,478	 	 	 $	173,913	 	 	 $	173,913	 	 	-$	1,000,000	 
	 	 	 
	 
	Cumulative Earned Amount
	 	 $	0	 	 	 $	391,304	 	 	 $	1,260,870	 	 	 $	2,521,739	 	 	 $	4,043,478	 	 	 $	5,608,696	 	 	 $	7,304,348	 	 	 $	9,000,000	 	 	 	 	 
	Cumulative Forfeited Amount
	 	-$	217,391	 	 	-$	695,652	 	 	-$	1,130,435	 	 	-$	1,391,304	 	 	-$	1,391,304	 	 	-$	1,347,826	 	 	-$	1,173,913	 	 	-$	1,000,000	 	 	 	 	 

 

			
	*	 	NOTE: A positive forfeiture amount indicates a previously forfeited amount that MTC will return
to Evergreen

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Example 3
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Actual Job Years Reported
	 	 	310	 	 	 	660	 	 	 	660	 	 	 	661	 	 	 	659	 	 	 	660	 	 	 	660	 	 	 	660	 
	 
	Targeted Job Years Created Above Baseline
	 	 	50	 	 	 	200	 	 	 	300	 	 	 	350	 	 	 	350	 	 	 	350	 	 	 	350	 	 	 	350	 	 	 	2300	 
	Less Actual Job Years Created Above Baseline
	 	 	0	 	 	 	350	 	 	 	350	 	 	 	351	 	 	 	349	 	 	 	350	 	 	 	350	 	 	 	350	 	 	 	2450	 
	 	 	 
	Variance from Target
	 	 	-50	 	 	 	150	 	 	 	50	 	 	 	1	 	 	 	-1	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	150	 
	 	 	 
	 
	Job Years Earned (not to exceed 2,300)
	 	 	0	 	 	 	350	 	 	 	350	 	 	 	351	 	 	 	349	 	 	 	350	 	 	 	350	 	 	 	200	 	 	 	 	 
	Cumulative Job Years Earned
	 	 	0	 	 	 	350	 	 	 	700	 	 	 	1051	 	 	 	1400	 	 	 	1750	 	 	 	2100	 	 	 	2300	 	 	 	 	 
	 
	Job Years Forfeited
	 	 	-50	 	 	 	50	 	 	 	0	 	 	 	0	 	 	 	-1	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	 	 
	Cumulative Job Years Forfeited
	 	 	-50	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	-1	 	 	 	-1	 	 	 	-1	 	 	 	-1	 	 	 	 	 
	 
	Earnings
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Actual Job Years Earned
	 	 	—	 	 	 	350	 	 	 	350	 	 	 	351	 	 	 	349	 	 	 	350	 	 	 	350	 	 	 	200	 	 	 	2,300	 
	Multiplied by Amount/Job Year
	 	 $	4,348	 	 	 $	4,348	 	 	 $	4,348	 	 	 $	4,348	 	 	 $	4,348	 	 	 $	4,348	 	 	 $	4,348	 	 	 $	4,348	 	 	 $	4,348	 
	 	 	 
	Total Earned Amount
	 	 $	0	 	 	 $	1,521,739	 	 	 $	1,521,739	 	 	 $	1,526,087	 	 	 $	1,517,391	 	 	 $	1,521,739	 	 	 $	1,521,739	 	 	 $	869,565	 	 	 $	10,000,000	 
	 	 	 
	 
	Forfeitures*
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Job Years Forfeited
	 	 	(50	)	 	 	50	 	 	 	—	 	 	 	—	 	 	 	(1	)	 	 	—	 	 	 	—	 	 	 	—	 	 	 	(1	)
	Multiplied by Amount/Job Year
	 	 $	4,348	 	 	 $	4,348	 	 	 $	4,348	 	 	 $	4,348	 	 	 $	4,348	 	 	 $	4,348	 	 	 $	4,348	 	 	 $	4,348	 	 	 $	4,348	 
	 	 	 
	Total Forfeited Amount
	 	-$	217,391	 	 	 $	217,391	 	 	 $	0	 	 	 $	0	 	 	-$	4,348	 	 	 $	0	 	 	 $	0	 	 	 $	0	 	 	-$	4,348	 
	 	 	 
	 
	True — Up Payment (in the event that Grantee achieves the creation on a cumulative basis of 2300 Job Years on or before the last day of the 8th year following the Effective
Date, MTC shall pay back to Grantee any and all amounts previously paid by Recipient to MTC as Forfeiture Amounts)	 	 $	4,348	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Cumulative Earned Amount
	 	 $	0	 	 	 $	1,521,739	 	 	 $	3,043,478	 	 	 $	4,569,565	 	 	 $	6,086,957	 	 	 $	7,608,696	 	 	 $	9,130,435	 	 	 $	10,000,000	 	 	 	 	 
	Cumulative Forfeited Amount
	 	-$	217,391	 	 	 $	0	 	 	 $	0	 	 	 $	0	 	 	-$	4,348	 	 	-$	4,348	 	 	-$	4,348	 	 	-$	4,348	 	 	 	 	 

 

			
	*	 	NOTE: A positive forfeiture amount indicates a previously
forfeited amount that MTC will return to Evergreen;
	 
	 	 	 

 

 

Project Grant Agreement: Evergreen Solar, Inc.

Attachment C

Example 1 

Total Project Construction Funds = $50,000,000

	 	 	 	 	 	 	 	 	 
	MTC Grant
	 	$	10,000,000	 	 	 	20	%
	Company Equity
	 	 	40,000,000	 	 	 	80	%
	 
	 	 	 	 	 	 	 	 
	Invoice :
	 	$	1,000,000	 	 	 	 	 
	Grant Draw
	 	$	200,000	 	 	 	(20	%)
	Company Funds Draw
	 	 	800,000	 	 	 	(80	%)

Example 2 

Total Project Construction Funds = $60,000,000

	 	 	 	 	 
	MTC Grant
	 	$	10,000,000	 
	Bank Loan
	 	$	25,000,000	 
	Company Equity
	 	$	25,000,000	 
	 
	 	 	 	 
	Invoice:
	 	$	1,000,000	 
	Grant Draw:
	 	$	166,667	 
	Bank Draw & Company Equity*
	 	$	833,333 	*

 

			
	 	 	Ratio to be negotiated between Co. and party lending for construction

Page 12exv10w39

 

Exhibit 10.39

CONFIDENTIAL TREATMENT REQUESTED: Certain portions of this document have been omitted pursuant to a
request for confidential treatment and, where applicable, have been marked with an asterisk
(“[****]”) to denote where omissions have been made. The confidential material has been filed
separately with the Securities and Exchange Commission.

07-December, 2007     

................................2007

SILICIUM DE PROVENCE S.A.S

and

EVERGREEN SOLAR, INC.

 

AGREEMENT FOR THE SALE AND PURCHASE

 OF SOLAR GRADE SILICON

 

 

 

07-December 2007     

HERBERT SMITH LLP

 

			
	 
	 	Page 2 of 17

 

 

07-December 2007     

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	Article	 	Headings	 	Page	 
	1.	 	DEFINITIONS AND INTERPRETATION
	 	 	4	 
	2.	 	DURATION
	 	 	5	 
	3.	 	SALE AND PURCHASE OF SILICON
	 	 	6	 
	4.	 	TITLE AND RISK
	 	 	8	 
	5.	 	SET-OFF
	 	 	9	 
	6.	 	LIABILITY
	 	 	9	 
	7.	 	ASSIGNMENT
	 	 	9	 
	8.	 	TERMINATION
	 	 	10	 
	9.	 	PERMITS, TAXATION AND EXPORT CONTROL
	 	 	11	 
	10.	 	FORCE MAJEURE
	 	 	11	 
	11.	 	CONFIDENTIALITY
	 	 	12	 
	12.	 	NOTICES
	 	 	13	 
	13.	 	APPLICABLE LAW AND LANGUAGE
	 	 	14	 
	14.	 	MISCELLANEOUS
	 	 	14	 
	15.	 	DISPUTES
	 	 	14	 
	SCHEDULE 1 SILICON SPECIFICATIONS	 	 	17	 
	SCHEDULE 2 DELIVERY UNITS AND PACKING OF SILICON	 	 	18	 

 

			
	 
	 	Page 3 of 17

 

 

07-December 2007     

AGREEMENT FOR THE SALE AND PURCHASE

OF SOLAR GRADE SILICON

THIS AGREEMENT is made on 7th December, 2007

BETWEEN:

	(1)	 	SILICIUM DE PROVENCE S.A.S., a private company with limited liability, incorporated under the
laws of France, whose registered office is situated at Usine de St. Auban, 04 600 Saint Auban,
France, represented by Mr. Frank Wouters (“Silpro”); and
	 
	(2)	 	EVERGREEN SOLAR, INC., a company incorporated in Delaware, U.S.A. with registered number
2426798, whose registered office is situated at 138 Bartlett Street, Marlboro, MA01752, USA,
represented by Richard Chleboski (“Evergreen”).

Hereinafter referred to severally each as a “Party” and jointly as the “Parties”.

WHEREAS:

	(A)	 	Silpro intends to develop a plant in France for the production of high-quality solar grade
polycrystalline silicon in a first phase with a nominal capacity of [****] metric tons/year
(the “First Phase”) and a second phase with a nominal capacity of [****] metric tons/year (the
“Second Phase”).
	 
	(B)	 	Evergreen is a leading processor of solar grade silicon of the type to be produced by Silpro
and a manufacturer of high-quality photovoltaic products.
	 
	(C)	 	The Parties wish to enter into an agreement whereby Silpro shall sell part of its production
of solar grade silicon to Evergreen

NOW, THEREFORE THE PARTIES AGREE AS FOLLOWS:

	1.	 	DEFINITIONS AND INTERPRETATION

	 	1.1	 	Definitions

	 	 	In this Agreement, unless the context otherwise requires, the following words and
expressions bear the meanings respectively set out below:
	 
	 	 	“Agreed Percentage of Silicon” means the quantities of Silicon which Silpro undertakes to
supply to Evergreen in accordance with Article 3.1.1;
	 
	 	 	“Contract Year” means a calendar year in the Gregorian Calendar and each fractional calendar
year from the date of signature until the date of termination of this Agreement;
	 
	 	 	“Effective Date” means the day of the satisfaction of the condition set out in Article 2.1;
	 
	 	 	“Loan” means the loan granted pursuant to the Subordinated Loan Agreement;
	 
	 	 	“Silicon” means the solar grade polycrystalline silicon produced at the Silpro’s Plant and
which meets the Silicon Specifications;
	 
	 	 	“Silicon Specifications” means the specifications of the Silicon as specified in Schedule 1;
	 
	 	 	“Silpro’s Plant” means the solar grade polycrystalline silicon production plant to be
constructed and operated by Silpro in Saint Auban, France;
	 
	 	 	“Subordinated Loan Agreement” means the subordinated loan agreement entered into between
Evergreen and Silpro of even date;
	 
	 	 	“Works” means the works arising out of and relating to the construction of Silpro’s Plant.

 

			
	 
	 	Page 4 of 17

 

 

07-December 2007     

	 	1.2	 	Interpretation

	 	In this Agreement, unless otherwise specified or the context otherwise requires:

	 	1.2.1	 	words importing the singular shall include the plural and vice versa;
	 
	 	1.2.2	 	words importing any gender shall include all other genders;
	 
	 	1.2.3	 	words importing the whole shall be treated as including reference to any part
of the whole;
	 
	 	1.2.4	 	reference to an Article is to the relevant article of this Agreement;
	 
	 	1.2.5	 	reference to this Agreement or to any other document is a reference to this
Agreement or to that other document as modified, amended, varied, supplemented or
replaced from time to time;
	 
	 	1.2.6	 	reference to a provision of law is a reference to that provision as extended,
applied, amended, consolidated or re-enacted or as the application thereof is modified
from time to time and shall be construed as including reference to any order,
instrument, regulation or other subordinate legislation from time to time made under
it, except as otherwise provided in this Agreement;
	 
	 	1.2.7	 	all references to the words ‘include’ and ‘including’ shall be construed
without limitation;
	 
	 	1.2.8	 	a reference to writing or written includes faxes and e-mail;
	 
	 	1.2.9	 	headings used in this Agreement shall not affect its construction or
interpretation;
	 
	 	1.2.10	 	words and phrases defined in any part of this Agreement bear the same meanings
throughout this Agreement;
	 
	 	1.2.11	 	“day” means calendar day, “month” means a calendar month, “year” means a period of
365 days except in the case of a leap year which shall mean a period of 366 days;
	 
	 	1.2.12	 	any standards, regulations, codes stated in any part of this Agreement shall be
interpreted as the latest version on the Effective Date of the said standard,
regulation, code etc., unless stated otherwise;
	 
	 	1.2.13	 	wherever in this Agreement provision is made for the giving of notice, consent or
approval by any person, unless otherwise stated, such shall not be unreasonably
withheld. Any notice, consent or approval shall be in writing and the word ‘notify’
shall be construed accordingly. All notices shall be served on the Parties designated
representative at the registered address of the Party or other address that a Party may
notify the other Party of from time to time; and
	 
	 	1.2.14	 	the documents forming this Agreement are to be taken to be mutually explanatory of
one another. For the purposes of interpretation, if any provision of the main body of
this Agreement is inconsistent with a provision of the Schedules, the provision of the
main body of this Agreement shall prevail.

	2.	 	DURATION

	 	2.1	 	This Agreement will be binding upon the Parties as from the date of its signature and shall
be effective upon disbursement by Evergreen to Silpro of the full amount of the Loan (the
“Effective Date”).
	 
	 	2.2	 	Subject to Article 10.6, this Agreement has a fixed duration of 10 (ten) years from the
date of delivery by Silpro to Evergreen of the first lot of Silicon under the terms of this
Agreement and may only be extended beyond its expiry date pursuant to the prior written
agreement of the Parties.

 

			
	 
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07-December 2007     

	 	2.3	 	Not greater than 3 (three) months and no less than 2 (two) months prior to the
5th (fifth) anniversary of the Effective Date, either Party may by notice to the
other, request that the terms of this Agreement be renegotiated to revise the terms to be
consistent with the terms of agreements that would be negotiated at that time for the
delivery of silicon in the amounts and at the times contemplated by this Agreement. The
Parties shall attempt in good faith to reach agreement. If no agreement is reached by the
5th (fifth) anniversary of the Effective Date, the provisions of Article 8 shall
apply.

	3.	 	SALE AND PURCHASE OF SILICON

	 	3.1	 	Quantities

	 	3.1.1	 	Silpro undertakes to sell to Evergreen and Evergreen agrees to purchase, in
any Contract Year commencing with the Contract Year in which Silpro’s Plant enters into
commercial operation, [****] per cent) of those quantities of Silicon which:

	 	(A)	 	are produced from Silpro’s Plant during such Contract Year;
and
	 
	 	(B)	 	meet or exceed the Silicon specification as set-out in
Schedule 1,
	 
	 	limited to [****] of the nominal capacity (as defined in the Preamble) (the “Agreed
Percentage of Silicon”).

     3.2 Commencement of supply

	 	3.2.1	 	Silpro’s construction and ramp up planning foresees a production volume of
in-spec material of approximately [****] tons in [****] commencing in [****].
	 
	 	3.2.2	 	Silpro will inform Evergreen each month after the Effective Date of the
planning and construction progress of Silpro’s Plant, including information on the
anticipated date of commercial operation and the anticipated date on which the nominal
capacity of the First Phase and Second Phase will be achieved in order to enable
Evergreen to plan its plant utilisation.

	 	3.3	 	Planned Quantities

	 	 	Within one month after Silpro’s Plant enters into commercial operation and in January and
July of each Contract Year (commencing with the Contract Year in which Silpro’s Plant enters
into commercial operation), Silpro shall communicate to Evergreen in writing the planned
dates and quantities of Silicon it will ship to Evergreen during the next twelve (12)
months. Silpro shall inform Evergreen reasonably in advance if significant changes must be
made to these planned dates and quantities.

	 	3.4	 	Delivery Conditions

	 	 	Silpro shall deliver the Silicon to Evergreen [****] Incoterms 2000, in accordance with the
delivery schedule as determined pursuant to the provisions of Article 3.3 and the provisions
relating to the division into units and packing of the Silicon contained in Schedule 2
(Delivery Units and Packing of Silicon).

 

			
	 
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07-December 2007     

	 	3.5	 	Price

	 	3.5.1	 	Subject to Article 3.5.3, the price of the Silicon supplied by Silpro to
Evergreen under this Article 3 shall be determined as follows:

	 	 	 
	Year of shipment of the Silicon	 	Silicon Price (€ / kg)
	2009

	 	[****]
	2010

	 	[****]
	2011

	 	[****]
	2012

	 	[****]
	2013

	 	[****]
	2014

	 	[****]
	2015

	 	[****]
	2016

	 	[****]
	2017

	 	[****]
	2018

	 	[****]
	2019

	 	[****]

	 	3.5.2	 	These prices do not include the costs of carriage and insurance of the Silicon
until it has been delivered to Evergreen pursuant to Article 3.4.
	 
	 	3.5.3	 	Price Adjustment

	 	(A)	 	The prices set out in Article 3.5.1 (“Initial Purchase
Price”) have been based on (i) the general prices in France for 2008 (for
inflation calculation purposes), (ii) the assumption that the price for
[****] is the actual price per metric ton (delivered price) to be
agreed between Silpro and its [****] supplier and for [****] is
€ [****]/MWH and (iii) the assumption that the cost of [****] is
[****]%) of the Silicon price (“CSf”) and the cost of [****] is [****]%)
of the Silicon price (“Ef”).
	 
	 	(B)	 	The Parties shall adjust the Initial Purchase Price every
January 1st and July 1st during the term of this Agreement, commencing from
calendar year 2009, every year to reflect [****] according to the following:

	 	(1)	 	the cost of [****] has changed by [****]%) or
more when compared to the costs for 2008, as set out in Article
3.5.3(A); or
	 
	 	(2)	 	the aggregate cost of [****] has changed by
[****]%) or more when compared to the costs for 2008, as set out in
Article 3.5.3(A).

	 	(C)	 	In determining the amount (“Price Change”) to be added to or
subtracted from the Initial Purchase Price, the following formula shall be
used:
	 
	 	 	 	Price Change = [****] x relevant Initial Purchase Price.
	 
	 	 	 	Where:
	 
	 	 	 	- [****];

 

			
	 
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07-December 2007     

	 	- [****];
	 
	 	*	 	Changes in the [****] will be reasonably documented based on actual
performance of SilPro’s plant after stable operations have been achieved.

	 	(D)	 	The Price Change shall be cumulative and shall be added to
(in the case of a price increase) or subtracted from (in the case of a price
decrease) the Initial Purchase Price.
	 
	 	 	 	Example only: in the calendar year 2008 there are a [****] price
increase of 4% and an [****] price decrease of 4%. Then the 2009 price
remains [****] Euro as in the table. In 2009 a further 7% [****] price
increase (cumulative 11% compared to 2008) and a further 10% [****]
price decrease (cumulative 14% compared to 2008 level). The price
correction for 2010 will be:
	 
	 	 	 	 [****]

	 	3.6	 	Payment
	 
	 	 	 	Evergreen shall pay invoices for Silicon in full within 30 days of receipt in cleared funds
to the following bank account:
	 
	 	 	 	Bank: [•]
	 
	 	 	 	Branch: [•]
	 
	 	 	 	Account Number: [•]
	 
	 	 	 	Swift Code: [•]
	 
	 	 	 	or to such other bank account as may be nominated from time to time by Silpro to Evergreen.
	 
	 	3.7	 	Specification of the Silicon
	 
	 	 	 	Silpro warrants that the Silicon will conform in all material respects to the Silicon
Specifications. All other warranties or conditions (whether express or implied) as to
quality, condition, description, compliance with sample or fitness for purpose (whether
statutory or otherwise) other than those expressly set out in this Agreement are excluded
from this Agreement to the fullest extent permitted by law.
	 
	 	3.8	 	Suspension of Supply of Silicon
	 
	 	 	 	If Silpro reasonably considers that Evergreen is in breach of any of its material
obligations under this Agreement and Evergreen fails to cure such breach within thirty (30)
calendar days after written notice thereof, Silpro shall be entitled to suspend the whole or
part of supply of Silicon to Evergreen (and the Agreed Percentage of Silicon for the
relevant Contract Year shall be reduced accordingly), until such time as Evergreen has
remedied its failure to perform.

	4.	 	TITLE AND RISK

	 	4.1	 	While any and all of the Silicon is in the possession or custody of Evergreen, Evergreen
agrees to bear the risk of any loss, contamination or damage to same. The Silicon shall be
deemed to be in the possession or custody of Evergreen as soon as it is delivered to
Evergreen [****] (Incoterms 2000).
	 
	 	4.2	 	Ownership in any applicable shipment of Silicon shall not pass to Evergreen until Silpro
has received in full (in cash or cleared funds) all sums due to it in respect of such
shipment.
	 
	 	4.3	 	Until such time as it has made full payment for the applicable shipment of silicon
Evergreen shall not impose or permit to be imposed upon the Silicon, any liens or
encumbrances whatsoever.

 

			
	 
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07-December 2007     

	5.	 	SET-OFF
	 
	 	 	Without prejudice to any other right or remedy it may have, each Party reserves the right to
set off any amount owing at any time to it by the other Party under this Agreement against
any amount payable by such Party to the other Party whether under this Agreement or under
any other agreement or otherwise.
	 
	6.	 	LIABILITY

	 	6.1	 	Subject to Article 9.2, each Party shall indemnify and hold harmless the other Party its
personnel and agents from and against all claims, damages, losses and expenses (including
reasonable legal fees and expenses) in respect of (1) bodily injury, sickness, disease or
death which is attributable to any negligence, wilful act or breach of this Agreement by such
Party, its personnel and agents and (2) matters for which liability maybe excluded from
insurance cover.
	 
	 	6.2	 	No Party shall be liable to any other Party for loss of profit, loss of any contract or for
any other consequential loss or damage which may be suffered by the other Party in connection
with this Agreement.

	7.	 	ASSIGNMENT

	 	7.1	 	Subject to (A)-(D) below and 7.2 neither Party may, or may purport to, assign, transfer,
mortgage, charge, pledge or otherwise encumber all or any portion of its rights, interests or
obligations arising under this Agreement without the prior written consent of the other
Party, except that:

	 	(A)	 	Subject to (B) and (D) below Silpro may freely assign all or any portion of its
rights and obligations under this Agreement (or any document or legal instrument
referred to in this Agreement), to (i) any shareholder of Silpro or Affiliate of such
shareholder or (ii) to any Lender.
	 
	 	 	 	For the purposes of this Article 12(A), “Affiliate” means in relation to any person,
any other person that, directly or indirectly, controls or is controlled by or is
under the same control as such person and the term “control” shall mean the ability to
exercise, or to promote the exercise, directly or indirectly, of at least 50% of the
voting rights attached to a person’s equity interests or shares.
	 
	 	 	 	“Lenders(s)” means any bank, special purpose project company, trust company, mortgage
company, insurance company, pension fund, real estate investment trust, or other
lending or financial institutions (including indirect lenders and loan participants)
providing debt, equity, lease and/or bond financing or financial services, or credit
support or other credit enhancement in any way related to the construction of the
Works
	 
	 	(B)	 	If Silpro does not obtain Evergreen’s prior written consent to any such
assignment, transfer, mortgage, charge, pledge or other encumbrance under sub-clause
(A) above, Silpro shall not be released from any obligation hereunder unless and until
Silpro provides a guarantee to Evergreen in a form acceptable to Evergreen in its sole
discretion.
	 
	 	(C)	 	If Silpro obtains Evergreen’s prior written consent to any such assignment,
transfer, mortgage, charge, pledge or other encumbrance under sub-clause (A) above
assignment Silpro shall not be required to provide an unconditional guarantee of the
obligations under this Agreement to Evergreen and Silpro shall be released from any
obligation hereunder upon the execution of an assignment and assumption agreement
whereby Silpro assigns all of its rights to the applicable assignee and such assignee
assumes all of the obligations of Silpro under this Agreement.

 

			
	 
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07-December 2007     

	 	(D)	 	Successive assignments of Silpro’s rights under this Agreement shall remain
subject to this Article 7.1 provided that Silicium de Provence S.A.S. shall not be
released from a guarantee provided in satisfaction of its obligations under this
Article 7.1 as a result of an assignment that occurs after the initial assignment by
Silpro unless Evergreen’s consent is obtained in which case Silpro shall be released
and item (C) above shall apply.

	 	7.2	 	Evergreen may assign or transfer this Agreement without the consent of Silpro in the event
of a change of control of Evergreen or the sale of all or substantially all the assets of
Evergreen to which this Agreement relates.
	 
	 	7.3	 	In particular, it shall be a condition of this Agreement that Evergreen shall not grant any
mortgage, charge, pledge, lien or other security interest of any kind or arrangement that
would effect the rights and obligations of the Parties under this Agreement, whether to its
creditors or any other third party.
	 
	 	7.4	 	Any assignment, transfer, mortgage, charge, pledge or other giving of security by one Party
hereunder shall not in any way diminish the other Party’s rights and obligations or the
giving Parties successor’s rights and obligations under this Agreement, including any
amendments hereto.
	 
	 	7.5	 	On the written request of Silpro, Evergreen shall cooperate with Silpro and any Lenders, by
entering, in a timely manner, into such direct agreements as may reasonably be necessary and
customary for project financing of the Works. Such agreements may include provisions which
permit the Lender(s), in the event of a breach of contract that would permit Evergreen to
terminate the Agreement, to:

	 	(i)	 	Take-over the Agreement;
	 
	 	(ii)	 	step-in, rectify or otherwise cure any breach of this Agreement;
	 
	 	(iii)	 	assign or otherwise transfer this Agreement.

	8.	 	TERMINATION

	 	8.1	 	Evergreen shall be entitled to terminate this Agreement if:

	 	8.1.1	 	Silpro commits a breach of any of its material obligations under this
Agreement and fails to remedy such breach (if such breach is remediable) within a
period of [****] days after being notified in writing to do so, without prejudice to
any rights that have accrued under this Agreement or any of its other rights or
remedies. A breach of a material obligation shall (without limitation) include the
following:

	 	(A)	 	Silpro fails to pay any amount due to Evergreen under this
Agreement on the due date for payment and remains in default for not less than
[****] days after being notified in writing to make such payment, provided
that Silpro does not dispute in good faith such payment as being due and
payable;
	 
	 	(B)	 	Silpro fails to commence supply by [****];
	 
	 	(C)	 	Silpro suspends, or threatens to suspend, payment of its
debts; or
	 
	 	(D)	 	Silpro suspends or ceases, or threatens to suspend or cease,
to carry on all or a substantial part of its business.

	 	8.1.2	 	the Parties fail to renegotiate the terms of this Agreement by the 5th Anniversary of the Effective Date, in accordance with Article 2.3.

 

			
	 
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07-December 2007     

	 	8.2	 	If Evergreen has entered into a direct agreement with any Lender then the terms thereof
shall take priority over the terms of this Agreement.
	 
	 	8.3	 	Silpro shall be entitled to terminate this Agreement if:

	 	8.3.1	 	Evergreen commits a breach of any of its material obligations under this
Agreement and fails to remedy such breach (if such breach is remediable) within a
period of [****] days after being notified in writing to do so, without prejudice to
any rights that have accrued under this Agreement or any of its rights or remedies. A
breach of a material obligation shall (without limitation) include the following:

	 	(A)	 	Evergreen fails to pay any amount due to Silpro under this
Agreement on the due date for payment and remains in default not less than
[****] days after being notified in writing to make such payment, provided
that Evergreen does not dispute in good faith such payment as being due and
payable; or
	 
	 	(B)	 	a suspension of the supply of the Silicon pursuant to Article
3.8 is continuing for more than [****] months; or
	 
	 	(C)	 	Evergreen suspends, or threatens to suspend, payment of its
debts; or
	 
	 	(D)	 	Evergreen suspends or ceases, or threatens to suspend or
cease, to carry on all or a substantial part of its business.

	 	8.4	 	After termination for whatever reason Evergreen shall:

	 	8.4.1	 	Pay for the Silicon delivered or en-route to Evergreen pursuant to this
Agreement in accordance with the terms of herewith; or
	 
	 	8.4.2	 	Return any deliveries not then paid for but then remaining in Evergreen’s
possession or custody or en-route to Evergreen upon termination of this Agreement
within 30 (thirty) days after the date of such termination, loaded aboard a carrier at
Evergreen’s Facility, with Evergreen bearing all packing and loading costs, and risk
until delivered to [****] Incoterms 2000 to Silpro or an entity nominated by Silpro.

	9.	 	PERMITS, TAXATION AND EXPORT CONTROL

	 	9.1	 	Evergreen represents and warrants that it has the foreign trade license or any other
license, permits or certificates as may be required by law to enter into this
	 
	 	9.2	 	Evergreen shall keep Silpro fully informed about any laws and regulations applicable to
Evergreen regarding the import of Silicon. In the event Evergreen is aware of any import
restrictions relating to the Silicon, it shall inform Silpro, as soon as possible.
	 
	 	9.3	 	Silpro is entitled to terminate this Agreement in whole or in part without compensation, if
any of the required import licenses, permits, approvals and consents are not valid or have
not been granted or are withdrawn by the responsible authorities.
	 
	 	9.4	 	Evergreen shall be responsible for all taxes and duties relative to the import of Silicon.

	10.	 	FORCE MAJEURE

	 	10.1	 	A Party, provided that it has complied with the provisions of Article 10.4, shall not be in
breach of this Agreement, nor liable for any failure or delay in performance of any
obligations under this Agreement (and, subject to Article 10.4, the time for performance of
the obligations shall be extended accordingly) arising from or attributable to acts, events,
omissions or accidents beyond its reasonable control and which it has not caused or
contributed to in any way (“Force Majeure Event”), which renders it impossible for the
affected Party to perform its obligations under this Agreement, including but not limited to
any of the following:

 

			
	 
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07-December 2007     

	 	10.1.1	 	Acts of God, including but not limited to fire, flood, earthquake, windstorm or other
natural disaster;
	 
	 	10.1.2	 	war, threat of or preparation for war, armed conflict, imposition of sanctions,
embargo, breaking off of diplomatic relations or similar actions;
	 
	 	10.1.3	 	terrorist attack, civil war, civil commotion or riots;
	 
	 	10.1.4	 	nuclear, chemical or biological contamination or sonic boom;
	 
	 	10.1.5	 	fire, explosion or accidental damage;
	 
	 	10.1.6	 	loss at sea;
	 
	 	10.1.7	 	extreme adverse weather conditions.

	 	10.2	 	Force Majeure shall not include economic hardship, changes in market conditions,
subcontractor’s default or delay, breakdown or ordinary wear and tear of equipment, machinery
or parts of either Party’s Facility or of the facilities of any of its subcontractors.
	 
	 	10.3	 	If one Party’s obligations are suspended pursuant to Article 10.1., the corresponding
obligations of the other Party will be suspended to the same extent save that Article 10.7
below shall prevail.
	 
	 	10.4	 	Any Party that is subject to a Force Majeure Event shall not be in breach of this Agreement
provided that:

	 	10.4.1	 	it promptly notifies the other Party in writing of the nature and extent of the Force
Majeure Event causing its failure or delay in performance;
	 
	 	10.4.2	 	it can demonstrate that it could not have avoided the effect of the Force Majeure
Event by taking precautions which, having regard to all the matters known to it before
the Force Majeure Event, it ought reasonably to have taken, but did not; and
	 
	 	10.4.3	 	it can demonstrate that it has used [****] to mitigate the effect
of the Force Majeure Event to carry out its obligations under this Agreement in any way
that is reasonably practicable and to resume the performance of its obligations as
reasonably possible.

	 	10.5	 	If the Force Majeure Event prevails for a continuous period of more than [****] months, the
Party that is not receiving the benefit of the Agreement as a result of the applicable Force
Majeure may terminate this Agreement by giving [****] days written notice to the other Party,
in the event that the Force Majeure continues for more than [****] months the Party that
would otherwise have received the benefit of the Agreement may terminate this Agreement by
giving [****] days written notice to the other Party. On the expiry of the [****] day notice
period, this Agreement will terminate. Such termination shall be without prejudice to the
rights of the Parties in respect of any breach of this Agreement occurring prior to such
termination.
	 
	 	10.6	 	The duration of this Agreement shall be automatically extended for the period of any Force
Majeure Event, unless earlier terminated in accordance with Article 8 or Article 10.5.
	 
	 	10.7	 	The payment obligations of the Parties shall not be suspended by a Force Majeure Event.

	11.	 	CONFIDENTIALITY

	 	11.1	 	Each Party undertakes that it shall not at any time during this Agreement and for a period
of [****] years after termination of this Agreement, disclose to any person any Confidential
Information
	 
	 	11.2	 	For the purpose of this Article 11, “Confidential Information” means any knowledge,
financial data or operating data, trade secrets, experience or know-how, and information of
all kinds in whatever form about technologies, finances and costs, marketing and business
(including but

 

			
	 
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07-December 2007     

	 	 	 	not limited to term sheets, notes, analyses, agreements, compilations, studies and
interpretations) and suchlike which is disclosed by or on behalf of the disclosing Party
whether or not the same is marked as Confidential Information including any Confidential
Information that is communicated to the receiving Party orally and not reduced in writing.
“Confidential Information” shall exclude any information that:

	 	i.	 	is or becomes (through no improper action or inaction by the
receiving Party or any affiliate, agent, consultant or employee) generally
available to the public, or
	 
	 	ii.	 	was in its possession or known by it prior to receipt from the
disclosing Party, provided the receiving Party complies with restrictions
imposed thereon by third parties, or
	 
	 	iii.	 	was rightfully disclosed to it by a third party without
restriction, provided the receiving Party complies with restrictions imposed
thereon by third parties , or
	 
	 	iv.	 	was independently developed without use of any Confidential
Information of the disclosing Party

	 	b.	 	Each Party may disclose any other Party’s Confidential Information:

	 	i.	 	to its employees, officers, representatives or advisers who
need to know such information for the purposes of carrying out the Party’s
obligations under this Agreement. Each Party shall ensure that its employees,
officers, representatives or advisers to whom it discloses the other Party’s
Confidential Information comply with this Article 11; and
	 
	 	ii.	 	as may be required by law, court order or any governmental or
regulatory authority.

	 	c.	 	No Party shall use any other Party’s Confidential Information for any purpose other
than to perform its obligations under this Agreement.
	 
	 	d.	 	Notwithstanding the foregoing, Silpro may disclose any information with respect to
this Agreement and its performance to any of Silpro’s shareholders or affiliates of such
shareholders, provided such information is covered under a confidentiality agreement as
least as restrictive as above.

	 	12.	 	NOTICES

	 	12.1	 	Any notice or other communication required to be given under this Agreement shall be in
writing and shall be delivered to the Party required to receive the notice or communication
at its address as set out below:

	 	 	Silpro
	 
	 	 	Usine de Saint Auban,
	 
	 	 	04 600 Saint Auban, France.
	 
	 	 	Attention: Frank Wouters, CEO
	 
	 	 	Evergreen
	 
	 	 	138 Bartlett Street
	 
	 	 	Marlborough, MA 01752 U.S.A.
	 
	 	 	Richard G. Chleboski
	 
	 	 	or at such other address as the relevant Party may specify by notice in writing to the other
Party.
	 
	 	 	Any notice or other communication sent by e-mail or facsimile must be confirmed by
commercial courier.

 

			
	 
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07-December 2007     

	 	12.2	 	Any notice or other communication shall be deemed to have been duly given:

	 	a.	 	if delivered personally, when left at the address referred to in Article 12;
	 
	 	b.	 	if delivered by commercial courier, on the date of signature of the courier’s
receipt;
	 
	 	c.	 	if sent by fax, at the time of transmission;
	 
	 	d.	 	if sent by e-mail, at the time of despatch.

	 	12.3	 	If deemed receipt under Article 12.2 is not within business hours (meaning 9.00 am to 5.30
pm Monday to Friday on a day that is not a public holiday in the place of receipt), such
notice or communication shall be deemed received when business next starts in the place of
receipt.

	13.	 	APPLICABLE LAW AND LANGUAGE

	 	13.1	 	This Agreement shall be governed by and construed in accordance with French law.
	 
	 	13.2	 	The language of this Agreement and all correspondence, notices and written communications
shall be English.

	14.	 	MISCELLANEOUS

	 	14.1	 	If any provision of this Agreement should be or become partly or wholly void, the remaining
provisions will continue to apply. The Parties shall agree in good faith to replace the void
provisions or the void part of the provision by a legally valid arrangement, which comes as
close as possible to the commercial meaning and purpose of the void provision or void part of
the provision.
	 
	 	14.2	 	This Agreement constitutes the entire agreement of the Parties with respect to the subject
matter hereof and, except as herein stated and in the instruments and documents to be
executed and delivered pursuant hereto, contains all of the representations, undertakings and
agreements of the Parties. This Agreement supersedes all prior meetings, correspondence, and
negotiations between the Parties. There are no representations, warranties, covenants,
agreements, or collateral understandings, oral or otherwise, expressed or implied, of any
kind between the Parties hereto, respecting the subject matter hereof, except as contained or
referred herein, and neither Party has relied on any statement outside of the written
agreement.
	 
	 	14.3	 	The provisions of Articles 4 (Title & Risk), 6 (Liability), 8 (Termination), 11
(Confidentiality) and 15 (Disputes) shall continue to apply after termination of this
Agreement.

 

			
	 
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	15.	 	DISPUTES

	 	15.1	 	If any dispute arises out of or in connection with this Agreement, directors or other
senior representatives of the Parties with authority to settle the dispute will, within
30days of a written request from one Party to the other, meet in a good faith effort to
resolve the dispute.
	 
	 	15.2	 	In the event that any dispute arising out of or in connection with Articles 3.1
(Quantities), 3.7 (Specification of the Silicon) of this Agreement is not resolved pursuant
to Article 15.1, the Parties agree to submit the matter to administered expertise proceedings
in accordance with the Rules for Expertise of the International Chamber of Commerce. The
findings of the expert shall be binding upon the Parties.
	 
	 	15.3	 	All disputes arising out of or in connection with this Agreement which are not resolved
pursuant to Article 15.1, or, where applicable, Article 15.2, shall be finally settled under
the Rules of Arbitration of the International Chamber of Commerce (ICC) by three arbitrators
appointed in accordance with the said Rules. The arbitration shall be conducted in English
and the seat shall be Paris.
	 
	 	15.4	 	Unless otherwise expressly agreed in writing by the Parties to the arbitration proceedings:

	 	a.	 	the arbitration proceedings shall be conducted in the English language and the
arbitrators shall be fluent in the English language;
	 
	 	b.	 	in addition to the ICC Rules, the Parties agree that the arbitration shall be
conducted according to the IBA Rules of Evidence;
	 
	 	c.	 	the award shall include interest from the date of any breach or violation of this
Agreement as determined by the arbitral tribunal, and from the date of the award until
paid in full.

 

			
	 
	 	Page 15 of 17

 

 

07-December 2007     

IN WITNESS whereof this Agreement has been entered into the day and year first before written.

Executed in Cologne in 2 original copies.

	 	 	 
	 

	 	/s/ Frank Wouters
	SIGNED by

	 	Frank Wouters
	for and on behalf of
	 	 
	SILICIUM DE PROVENCE S.A.S
	 	 
	 
	 	 
	 

	 	/s/ Richard G. Chleboski
	SIGNED by

	 	Richard Chleboski
	for and on behalf of
	 	 
	EVERGREEN SOLAR, INC.
	 	 

 

			
	 
	 	Page 16 of 17

 

 

07-December 2007     

SCHEDULE 1

SILICON SPECIFICATIONS

[****]

 

			
	 
	 	Page 17 of 17

 

 

07-December 2007     

SCHEDULE 2

DELIVERY UNITS AND PACKING OF SILICON

[Silpro to provide]

 

			
	 
	 	Page 18 of 17

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00137-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00137-of-00352.parquet"}]]