Document:

Form
      of
      Employment Agreement

    

    between

    

    STF
      Technologies Zrt

    (formerly
      Kraft Electronics Zrt)

    

    and

    

    ISTVAN
      KRAFCSIK

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    STF
      Technologies Zrt

    H-1121
      Budapest

    Hungary
      

    (the
      "Company")

    

    and

    

    Istvan
      Krafcsik

    _____________________

    ____________________

    Hungary

    (the
      "Executive”)

     

    have
      today entered into the following

    

    Employment
      Agreement

     

    
      	
              1

            	
              General
                Duties of the Executive; Reporting
                Functions

            

    

     

    
      	
              1.1

            	
              With
                effect from ___________ __ 2008 (which is the date of entry into
                work) and
                for a period expiring on December 31, 2014, the Executive is employed
                as
                member of the Board of Directors and President of the Company. In
                addition, the Executive shall also serve (for no additional compensation
                other than as provided in this Agreement) as the General Manager
                of Buda
                Solar Technologies Co., Ltd., a wholly-owned subsidiary of the Company,
                hereinafter “BudaSolar”).
                The Executive shall be fully liable for the termination of his position
                and/or his employment deriving from that in case he (either as executive
                to be appointed or as a shareholder of the Company) acts against
                or omits
                to provide the declaration, approvals, vote(s) necessary for the
                extension
                of his position at the Company as
                President.

            

    

     

    
      	
              1.2

            	
              The
                Executive shall be the President responsible for the day-to-day management
                of the Company and General Manager of BudaSolar responsible for the
                day-to-day management of BudaSolar. Subject at all times to the provisions
                of this Agreement, including Clause 1.12 below, the Executive as
                President
                of the Company and General Manager of BudaSolar shall be primarily
                responsible for manufacture and sale of PV Equipment, sales leadership
                and
                dealings with the distributors, dealers and representatives of the
                Company, management transition, product line integration and corporate
                strategy. In addition, the Executive shall have authority and
                responsibility over key aspects of the operations of the Company
                and
                BudaSolar, particularly with respect to areas of research, product
                development, product strategy, product fulfillment and day-to-day
                operations.

            

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    
      	
              1.3

            	
              The
                Executive as President of the Company and BudaSolar shall report
                to and be
                subject to the operating instructions and guidelines laid down Board
                of
                Directors of the Company which are annexed hereto as Exhibit
                A
                and made a part hereof (the “Operating
                Guidelines”).
                

            

    

     

    
      	
              1.4

            	
              The
                Employee shall perform work at the premises of the Company.
                

            

    

     

    
      	
              1.5

            	
              Subject
                to the provisions of this Article I, the Company’s rights in respect of
                the Executive shall be exercised by the Board of Directors of the
                Company.
                In case the Articles of Association of the Company or the procedures
                for
                reporting established by the Board of Directors of the Company provides
                otherwise, the Executive shall be informed of such change in the
                person
                exercising Employer’s rights in writing. In case of decisions passed by
                the Board of Directors regarding the exercising of the Company’s rights
                over the Executive, the Executive shall not vote and shall not be
                considered at the establishment of a quorum of
                directors.

            

    

     

    
      	
              1.6

            	
              The
                Employer and the Executive acknowledge that the Executive is considered
                as
                an executive employee under the terms of Clause 188 Paragraph (1)
                of the
                Labor Code.

            

    

     

    
      	
              1.7

            	
              As
                used in this Agreement: 

            

    

     

    
      	
            	(a)	
              The
                term “Affiliate”
                shall mean any individual, firm, corporation, partnership or other
                entity
                (each a “Person”)
                controlled by, controlling or under common control with, any other
                Person.

            

    

     

    
      	
            	(b)	
              The
                term “Company
                Group”
                shall mean the Company and its consolidated direct and indirect
                Subsidiaries, including without limitation, Buda
                Solar.

            

    

     

    
      	
            	(c)	
              The
                term “Company
                Group EBITDA”
                shall mean the net income of the Company Group for each of the five
                “Measuring Years” (as that term is defined in Clause 4.2 below), before
                deduction for interest, taxes, depreciation of tangible assets and
                amortization of intangible assets, all as determined by the auditors
                for
                Solar Thin engaged to audit the consolidated financial statements
                of Solar
                Thin, including its Company Group.

            

    

     

    
      	
            	(d)	
              The
                term “HUF”
                mean Hungarian Florint.

            

    

     

    
      	
            	(e)	
              The
                term “PV
                Equipment”
                means the machinery, equipment, software and computer hardware required
                to
                be installed at a PV Facility to enable a Person to manufacture and
                produce PV Modules; 

            

    

     

    
      	
            	(f)	
              The
                term “PV
                Facility”
                means a turn-key manufacturing facility including PV Equipment,
                converters, land and building to enable a Person to produce PV Modules;
                

            

    

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    
      	
            	(g)	
              The
                term “PV
                Modules”
                means amorphous silicon (“aSi”)
                photovoltaic solar panels capable of producing solar
                power’

            

    

     

    
      	
            	(h)	
              The
                term “Subsidiary”
                shall mean Buda Solar and any other Person more than a majority of
                the
                share capital of which is owned directly or indirectly (through another
                Subsidiary) by the Company.

            

    

     

    
      	
              1.8

            	
              The
                Executive shall perform his duties in accordance with Hungarian law
                and
                more particularly within the provisions of all statutes governing
                the
                operation of businesses located in Hungary, this Agreement, the
                Shareholders Agreement signed by the shareholders of the Company,
                the
                Articles of association and by-laws of the Company, the rules of
                procedure
                of the Board of Directors of the Company and in accordance with such
                general and special directions and instructions which may be given
                to him
                by the Board of Directors of the Company, or the General Meeting
                of the
                Company from time to time.

            

    

     

    
      	
              1.9

            	
              The
                business of the Company, BudaSolar and the Company Group shall be
                managed
                by the Board of Directors of the Company. In such connection, transactions
                and decisions which require the approval and consent of the Board
                of
                Directors of the Company shall include, without limitation, the
                following:

            

    

     

    
      	 	
              (a)

            	
              the
                sale of the business of the Company, or any part
                thereof;

            

    

     

    
      	 	
              (b)

            	
              the
                purchase of any businesses;

            

    

     

    
      	 	
              (c)

            	
              the
                establishment or closing of branches, divisions or
                subsidiaries;

            

    

     

    
      	 	
              (d)

            	
              any
                material structural changes with respect to the organisation, employees
                or
                business activities of the Company;

            

    

     

    
      	 	
              (e)

            	
              except
                as previously approved by the board of directors as part of the annual
                Budget and Plan contemplated by the Operating Guidelines, the purchase,
                sale, lease or charge of real
                property;

            

    

     

    
      	 	
              (f)

            	
              except
                as previously approved by the board of directors as part of the annual
                Budget and Plan contemplated by the Operating Guidelines, the purchase,
                sale, lease or charge of any equipment having a value in excess of
                USD
                $25,000;

            

    

     

    
      	 	
              (g)

            	
              the
                taking up of loans or other credit
                facilities;

            

    

     

    
      	 	
              (h)

            	
              the
                making of loans or entering into any credit
                facilities;

            

    

     

    
      	 	
              (i)

            	
              the
                granting of guarantees or other forms of indemnities or
                security;

            

    

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    
      	 	
              (j)

            	
              the
                conclusion of any contracts which obligates the Company or BudaSolar
                for
                USD $100,000 or more, or which cannot otherwise be unilaterally cancelled
                by the Company or BudaSolar on 60 days notice or less, including
                without
                limitation, the acceptance of all purchase orders for PV Equipment,
                PV
                Facilities or PV Modules;

            

    

     

    
      	 	
              (k)

            	
              except
                as previously approved by the board of directors as part of the annual
                Budget and Plan contemplated by the Operating Guidelines, the increase
                in
                compensation of any employees, or the establishment of general or
                special
                pension schemes, profit sharing schemes or bonus schemes with the
                employees of the Company; 

            

    

     

    
      	 	
              (l)

            	
              any
                transaction involving any officer or director of the Company;
                or

            

    

     

    
      	 	
              (m)

            	
              the
                issuance of any securities, equity or other ownership interests or
                rights
                thereto of the Company or any other member of the Company Group.
                

            

    

     

    
      	
              2

            	
              Additional
                Duties of the Executive

            

    

     

    
      	
              2.1

            	
              The
                weekly working time of the Employee shall be 40 hours.
                The Employee defines his work schedule himself. The Executive shall
                devote
                the whole of his time, attention and abilities in the service of
                the
                Company, except for such time devoted to his duties as President
                of
                BudaSolar,

            

    

     

    
      	
              2.2

            	
              Without
                prior written consent of the Board of Directors of the Company, the
                Executive may not undertake other activities whether they are remunerated
                or not, except of academic or teaching activities which do not interfere
                with the Executive’s duties and obligations to the Company, BudaSolar and
                the Company Group.

            

    

     

    
      	
              3

            	
              Power
                to sign for the Company

            

    

     

    
      	
              3.1

            	
              Subject
                at all times to the Operating Guidelines, the Executive is authorised
                to
                sign on behalf of the Company and BudaSolar in all matters concerning
                the
                day-to-day business of the Company and BudaSolar, and subject to
                the power
                to sign for the Company and BudaSolar set out in the relevant articles
                of
                association. 

            

    

     

    
      	
              4

            	
              Remuneration

            

    

     

    
      	4.1	
              Salary. The
                Executive's annual gross salary shall be the HUF amount equal to
                USD
                $200,000 per annum, payable in monthly installments of HUF equal
                to (U.S.)
                $16,666.66 each (the “Monthly Salary”); which Monthly
                Salary shall be payable in arrears within five days after the last
                business day of each month in HUF. The basis of the calculation of
                the HUF
                amount shall be the daily USD/HUF exchange rate of the Hungarian
                National
                Bank set out on the last business day of each month. The annual gross
                salary shall be subject to annual review by the board of directors
                of the
                Company. Such annual gross salary and Monthly Salary shall be paid
                to the
                Executive in HUF.

            

    

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    
      	4.2	
              Annual
                Bonus.  Not less than 120 days after the end of each of the five
                (5) following calendar years: (a) 1 January 2009 and ending 31 December
                2009 (the “2009 Calendar Year”), (b) 1 January 2010 and
                ending 31 December 2010 (the “2010 Calendar Year”), (c) 1
                January 2011 and ending 31 December 2011 (the “2011 Calendar
                Year”), (d) 1 January 2012 and ending 31 December 2012 (the
                “2012 Calendar Year”), and (e) 1 January 2013 and ending
                31 December 2013 (the “2013 Calendar Year”), the
                Executive and Attila Horvath (“Horvath”) shall be
                entitled to receive and share (in equal 50/50 amounts) a bonus (the
                “Annual Bonus”) which shall equal five percent (5%) of
                the amount, if any, by which the “Company Group EBITDA”
                (as defined below) shall exceed the minimum
                amounts set forth below in each of the five calendar years indicated
                below
                (the “Measuring Years”); provided, however that in no
                event shall the Annual Bonus payable in each Measuring Year in question
                exceed the Maximum Bonus set forth below
                :

            

    

     

    
      	 	 	
              2009 Calendar Year

            	 	
              2010 Calendar Year

            	 	
              2011 Calendar Year

            	 
	 	 	 	 	 	 	 	 
	
              Minimum
                EBITDA

            	 	
              $

            	
              2,000,000

            	 	
              $

            	
              5,000,000

            	 	
              $

            	
              8,000,000

            	 
	 	 	 	 	 	 	 	 	 	 	 
	
              Maximum
                Bonus

            	 	
              $

            	
              1,000,000

            	 	
              $

            	
              1,500,000

            	 	
              $

            	
              2,000,000

            	 
	 	 	 	 	 	 	 	 	 	 	 
	
               

            	 	 	
              2012 Calendar Year 

            	 	 	
              2013 Calendar Year

            	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	
              Minimum
                EBITDA

            	 	
              $

            	
              2,000,000

            	 	
              $

            	
              5,000,000

            	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	
              Maximum
                Bonus

            	 	
              $

            	
              2,500,000

            	 	
              $

            	
              3,000,000

            	 	 	 	 

    

     

    The
      foregoing Annual Bonus and Maximum Bonus, although expressed in United States
      dollars,
      shall be calculated in HUF and paid to the Executive and Horvath in HUF at
      the
      actual USD/HUF exchange rate published by the Hungarian National Bank on the
      day
      of the payment. 

     

    
      	
              5

            	
              Motor
                Car

            

    

     

    
      	
              5.1

            	
              The
                Company shall provide the Executive with a car of a type which the
                Company
                deems suitable for the Executive's position and area of responsibility.
                In
                connection with the commencement of the employment a car will be
                made
                available to the Executive and any subsequent replacements must be
                approved by the Board of Directors. The value of the car shall be
                in the
                range of HUF 15,000,000 (approximately USD $90,000). The Company
                shall
                cover all operating costs of said car related to use in Hungary or
                to
                business use abroad. If the Executive uses the car for private purposes
                outside Hungary, the Executive shall pay all expenses related thereto.
                

            

    

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    
      	
              5.2

            	
              If
                this Agreement is terminated with or without notice and regardless
                of the
                reason therefor, the Executive shall return the car to the Company
                on the
                day from which his duties are suspended. The Executive is not entitled
                to
                exercise a retention right or lien on the car. Instead, the Executive
                shall receive a monthly amount equivalent to the fiscal value of
                the free
                car arrangement described in Clause 5.1 until the end of the period
                for
                which the Executive receives
                salary.

            

    

     

    
      	
              6

            	
              Telephone

            

    

     

    
      	
              6.1

            	
              The
                Company will provide the Executive with free mobile telephone, to
                be used
                primarily for business purposes. Any and all costs payable after
                the use
                of the phone shall be borne by the Company.

            

    

     

    
      	
              6.2

            	
              If
                this Agreement is terminated with or without notice and regardless
                of the
                reason therefor, the Executive shall deliver the mobile telephone
                back to
                the Company on the day from which his duties are suspended. The Executive
                is not entitled to exercise a retention right or lien on the mobile
                telephone. Instead, the Executive shall receive a monthly amount
                equivalent to the fiscal value of the free mobile telephone described
                in
                Clause 6.1 until the end of the period for which the Executive receives
                salary. The Executive is entitled to keep and use the same telephone
                number after the termination.

            

    

     

    
      	
              7

            	
              Other
                Expenses

            

    

     

    
      	
              7.1

            	
              The
                Company shall reimburse the Executive for all reasonable expenses
                incurred
                in connection with travelling and entertainment on behalf of the
                Company
                in accordance with the relevant rules of the Company in force from
                time to
                time. The Executive shall not later than the first working day of
                each
                month submit a statement of his travelling and other expenses together
                with invoices for the previous month to the Company. [At the same
                time the
                Executive shall submit a copy of this material to a board member
                designated by the Board of Directors to approve such statements.
                The Board
                of Directors shall be entitled to establish a budget for such expenses.]
                Should the Company’s EBITDA be positive then in case of traveling over the
                distance of 3000 km the Executive is entitled to business class tickets.
                

               

            

    

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    
      	
              8

            	
              Holidays

            

    

     

    
      	
              8.1

            	
              The
                Executive shall be entitled to paid annual holidays according to
                the
                relevant provisions of the Hungarian Labor
                Code.

            

    

     

    
      	
              8.2

            	
              The
                Executive shall decide the periods for his holidays after due
                consideration of the Company's business and after prior notification
                of
                the Board of Directors of the
                Company.

            

    

     

    
      	
              8.3

            	
              The
                Executive shall take his annual holidays within each current holiday
                year
                and any holidays not taken in any holiday year cannot be carried
                forward
                as transferred to a subsequent holiday year. No special holiday pay
                is
                payable to the Executive. In case of termination, the Executive shall
                take
                any accrued holidays during the period of notice and shall not be
                entitled
                to any kind of compensation if he has not been able to take holidays
                accrued prior to the termination date of this Agreement except for
                the
                case when the accrued holidays exceed the term of the notice while
                the
                Executive has to work. In this case the Executive is entitled to
                compensation for such excess.

            

    

     

    
      	
              9

            	
              Sickness

            

    

     

    
      	
              9.1

            	
              The
                Executive is entitled to receive his salary during any periods of
                sickness
                as set out by the Hungarian Labor
                Code.

            

    

     

    
      	
              10

            	
              Insurance

            

    

     

    
      	
              10.1

            	
              The
                Company shall take out accident insurance covering the Executive
                fully
                against personal accident in Hungary and abroad whether during working
                hours or on holidays.

            

    

     

    
      	
              10.2

            	
              The
                insurance shall include coverage in respect of accidental death or
                accidental permanent disablement.

            

    

     

    
      	
              11

            	
              Confidentiality
                etc.

            

    

     

    
      	
              11.1

            	
              The
                Executive shall keep secret and shall not at any time whether during
                this
                employment or after the termination thereof for whatever reason use
                for
                his own and/or any other person's advantage or disclose to any third
                party
                any information about the Company, BudaSolar the Company Group, Solar
                Thin
                or other group companies' internal matters, including especially
                in
                relation to the financial situation, business activities, customers
                and
                employees, in so far as such information is confidential or a business
                secret.

            

    

     

    
      	
              11.2

            	
              The
                Executive shall promptly communicate to the Company all ideas, inventions,
                modifications, improvements, processes, formulae, materials, know-how,
                designs, models, prototypes, trademarks, sketches, drawings, plans
                and
                other matters (intellectual property) (whether or not capable of
                protection by any contractual, statutory or other form of protection
                of
                intellectual property) which at any time during the term of the
                Executive's employment the Executive alone or jointly with others
                may
                devise or discover in the course of the Executive's performance for
                the
                Company Group of his duties. Subject to the provisions under Hungarian
                laws such intellectual property rights including all financial rights
                deriving there from shall belong to the Company Group Company or
                the
                respective Company Group company without payment of any additional
                consideration. The Parties agree that any fees that could otherwise
                be
                payable to the Executive are considered as covered by the remuneration
                of
                the Executive set out in this agreement as well as his share capital
                equity in the Company, especially with view to the fact that the
                development of the above mentioned intellectual property comprises
                an
                obligation of the Executive arising from his employment with the
                Company.
                

            

    

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    
      	
              11.3

            	
              The
                Executive undertakes to sign such statements and permits as are required
                by the Company and the Company Group for the purpose of transferring,
                registering or obtaining the above mentioned rights in the name of
                the
                Company and the Company Group.

            

    

     

    
      	
              11.4

            	
              Upon
                termination of his employment for whatever reason the Executive shall
                return to the Company all material, reports, manuals, correspondence,
                files, customer lists and other material belonging to the Company.
                The
                Executive shall not be entitled to exercise a retention right or
                lien on
                such materials.

            

    

     

    
      	
              12

            	
              Termination;
                Severance Pay

            

    

     

    
      	
              12.1

            	
              The
                employment shall automatically terminate 31 December 2014 as set
                out in
                Clause 1.1. 

            

    

     

    
      	12.2	
              (a) 
                Beyond
                the case in Clause 12.1. the employment relationship can be terminated
                prior to 31 December 2014 by (i) mutual agreement, by (ii) extraordinary
                termination, or (iii) upon exercise of the “Call Option” or the “Buy-Out
                Option” (as those terms are defined in the Share Exchange Agreement) and
                the payment to the Executive in cash of the full Call Option Price
                or
                Buy-Out Option Price (as those terms are defined in the Share Exchange
                Agreement). 

            

    

     

    (b)  In
      the
      event that:

     

    (i)
      the
      Call Option or the Buy-Out Option is exercised and paid in full and
      the
      Company thereafter elects to terminate the employment of the Executive pursuant
      to clause (iii) of Clause 12.2(a) above for reasons other
      than an
      extraordinary termination, or 

     

    (ii)
      the
      Executive shall terminate this Agreement by reason of the occurrence of one
      or
      more events described in Clause 12.2(d) below, 

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    then
      and
      in either event, the non-competition provisions set forth in Section 8.4 of
      the
      Share Exchange Agreement shall terminate.

     

    (c)  The
      Company or the Executive may terminate the employment relationship by
      extraordinary termination in the event that the other party (i) willfully or
      by
      gross negligence commits a grave violation of any substantive obligations
      arising from the employment relationship, or (ii) otherwise engages in conduct
      rendering further existance of the employment relationship impossible.

     

    For
      the
      avoidance of doubt, the Company shall have grounds for extraordinary termination
      of the employment of the Executive, if the Executive (a) is convicted of any
      crime or other felony, (b) misappropriates any funds, business, opportunity
      or
      other benefit belonging to the Company, (c) engages in any competitive
      activities, (d) fails to devote his full business and professional time to
      the
      affairs of the Company and the Company Group, (e) is in material breach of
      his
      obligations under this Agreement or otherwise fails or refuses, after written
      notice of not less than twenty (20) days, to following the reasonable requests
      and direction of the Board of Directors of the Company, or (f) engages in any
      other act or omission that would constitute gross negligence, fraud or
      dereliction of his duties hereunder. In any of these events committed by the
      Executive, the Executive shall be entitled to receive no further benefits
      (including Annual Bonus) under this Agreement from and after the date of
      termination. 

     

    (d)  Grounds
      for extraordinary termination by the Executive are limited to (i) a material
      change without just cause in the nature of the Executive’s duties hereunder,
      (ii) the failure by the Company to timely pay the compensation to which the
      Executive shall be entitled to receive under this Agreement, (iii) after the
      expiration of all periods to cure any such default, the failure of Solar Thin
      Films, Inc. to perform the material covenants and agreements on its part to
      be
      performed under Section
      8.5
      of the
      Share Exchange Agreement (the “Buy-out Right”) or Section
      8.6
      of the
      Share Exchange Agreement (the “Call Option”), or (iv) after the expiration of
      all periods to cure any such default, the failure of Solar Thin Films, Inc.
      or
      the Company to perform any of the material covenants and agreements on their
      part to be performed under the Shareholders Agreement among the Company and
      its
      shareholders, including the Executive.

     

    
      	
              12.3

            	
              If
                the Company terminates the employment of the Executive in for any
                reason
                other
                than as described in Clause 12.2. then the Executive shall be entitled
                to
                receive severance pay equal to 

            

    

     

    (a)
      his
      Monthly Salary (payable in equal monthly installments) for a period equal to
      the
      duration of the five (5) year period of the Executive’s non-competition
      agreement set forth in the Stock Exchange Agreement (unless the Company and
      the
      Executive mutually agreement to terminate such non-competition agreement; in
      which event severance pay shall be limited to three months salary commencing
      from the date of termination of such non-competition agreement), and

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    (b)
      any
      Annual Bonus to which the Executive would otherwise be entitled to receive
      in
      the Measuring Year in which such termination occurs but at least an Annual
      Bonus
      equal to the amount of the Annual Bonus received by the Executive through the
      twelve (12) month period prior such termination.

     

    
      	
              12.4

            	
              In
                case of termination the Company is obliged to hand over the salary,
                the
                reimbursement of the remaining vacation leave, certifications to
                the
                Executive that are due to the Executive according to the rules of
                the
                Labor Code on the last working day of the
                Executive.

            

    

     

    
      	
              12.5

            	
              On
                the information set forth in Clause 76 (7) of the Labour
                Code:

            

    

     

    1.
      Standard work order: The Executive has flexible work order.

    2.
      Other
      components of the salary: Annual Bonus according to Clause 4.2 of the
      Agreement.

    3.
      Day of
      payment: in arrears within five days after the end of the last business day
      of
      each month.

    4.
      Date
      of entry into work: see Clause 1.1 of the Agreement. 

    5.
      Calculation method and the granting of ordinary holiday: see Clause 8.2 and
      8.3
      of the Agreement. The Executive is entitled to holiday days per year established
      by Clause 131 of the Labour Code.

    6.
      Notice
      period: none.

    

    
      	
              12.6

            	
              The
                provisions of this agreement shall be governed by and construed in
                accordance with the laws of Hungary (excluding any conflict of law
                rule or
                principle that would refer to the laws of another jurisdiction) Any
                dispute, controversy or claim arising out of or relating to this
                agreement, or the breach, termination or invalidity thereof, shall
                be
                settled exclusively in Hungarian
                Court.

            

    

     

    The
      balance of this page intentionally left blank - signature page
      follows

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF, this Agreement has been executed the date any year first above
      written in Budapest, Hungary.

    

    
      	
              STF
                TECHNOLOGIES, ZRT.

            	 	
              The
                Executive:

            
	 	 	 
	  
	 	  

	 	 	
              ISTVAN
                KRAFCSIK

            

    

    

    The
      undersigned does hereby guaranty the payment and performance of the Employer
      under the above Employment Agreement.

    

    
      	
              SOLAR
                THIN FILMS, INC.

            
	 
	 
	  

	
              Peter
                C. Lewis, President

            

    

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    OPERATING
      GUIDELINES

     

    1. On
      or
      before January 1st
      in each
      year (commencing 2009), the Executive shall submit an annual budget and business
      plan for research, sales, marketing, product development and strategy, and
      operations, including product fulfilment (the “Budget
      and Plan”)
      to the
      Board of Directors of the Company for approval. If approved (or modified by
      the
      Board of Directors), the Executive shall have the authority to operate and
      make
      expenditures within such approved Budget and Plan. As part of the Budget and
      Plan, the Executive shall submit to the Chief Executive Officer of Solar Thin
      and the Board of Directors of the Company proposed pricing and sales terms
      for
      all PV Equipment to be sold and marketed by the Company. Any deviation from
      such
      approved Budget and Plan shall require the Board of Directors of the Company.
      

     

    2. The
      Executive will have authority to negotiate PV Equipment sales within the
      parameters of all such pricing and sales terms and to execute contracts and
      purchase orders with respect thereto on behalf of the Company and BudaSolar;
      provided,
      that
      the final terms and conditions of all PV Equipment sales contracts and other
      purchase orders shall be reviewed and approved in advance of signing by the
      Executive by the Board of Directors of the Company or by the Chief Executive
      Officer of Solar Thin (pursuant to authority expressly granted to such person
      by
      or by the Board of Directors of the Company).

     

    3. The
      finance and accounting group of the Company will report to the Chief Financial
      Officer of Solar Thin. Responsibility for auditing, reporting and compliance
      will reside with the Chief Financial Officer of Solar Thin, and the Controller
      or other senior financial officer of the Company will have a reporting
      relationship to the Chief Financial Officer of Solar Thin. With respect to
      the
      day-to-day accounting and finance functions such as purchasing, receiving,
      cash
      management, cost accounting, the Controller or other senior financial officer
      of
      the Company will report through the Executive or such other senior officer
      of
      the Company as designated by the Executive. 

     

    
      
        
        

      

      
        13Form
      of
      Employment Agreement

    

    between

    

    STF
      Technologies, Zrt

    

    and

    

    Attila
      Horvath

    
      
         

        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    STF
      Technologies Zrt 

    Konkoly
      Thege ut 29

    H-1121
      Budapest

    Hungary
      

    (the
      "Company")

    

    and

    

    Attila
      Horvath

    _____________________

    ____________________

    Hungary

    (the
      "Executive”)

    

    have
      today entered into the following

    

    Employment
      Agreement

    

    
      	
              1

            	
              General
                Duties of the Executive; Reporting
                Functions

            

    

    

    
      	
              1.1

            	
              With
                effect from ___________ __ 2008 (which is the date of entry into
                work) and
                for a period expiring on December 31, 2014, the Executive is employed
                as
                member of the Board of Directors and Chief Operating Officer of the
                Company. In addition, the Executive shall also serve (for no additional
                compensation other than as provided in this Agreement) as the Chief
                Operating Officer of Buda Solar Technologies Co., Ltd., a wholly-owned
                subsidiary of the Company, hereinafter “BudaSolar”).
                The Executive shall be fully liable for the termination of his position
                and/or his employment deriving from that in case he (either as executive
                to be appointed or as a shareholder of the Company) acts against
                or omits
                to provide the declaration, approvals, vote(s) necessary for the
                extension
                of his position at the Company as Chief Operating
                Officer.

            

    

    

    
      	
              1.2

            	
              The
                Executive shall be the Chief Operating Officer of the Company and
                of
                BudaSolar primarily responsible for the manufacture and sale of PV
                Equipment, sales leadership and dealings with the distributors, dealers
                and representatives of the Company, management transition, product
                line
                integration and corporate strategy. In addition, the Executive shall
                have
                authority and responsibility over key aspects of the operations of
                the
                Company and BudaSolar, particularly with respect to areas of research,
                product development, product strategy, product fulfillment and day-to-day
                operations. 

            

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    

    
      	
              1.3

            	
              The
                Executive shall report to the President of the Company and the General
                Manager of BudaSolar and to the Board of Directors of the Company
                and
                BudaSolar. The Executive shall also be subject to the operating
                instructions and guidelines laid down Board of Directors of the Company
                which are annexed hereto as Exhibit
                A
                and made a part hereof (the “Operating
                Guidelines”).
                

            

    

    

    
      	
              1.4

            	
              The
                Employee shall perform work at the premises of the Company.
                

            

    

    

    
      	
              1.5

            	
              Subject
                to the provisions of this Article I, the Company’s rights in respect of
                the Executive shall be exercised by the Board of Directors of the
                Company.
                In case the Articles of Association of the Company or the procedures
                for
                reporting established by the Board of Directors of the Company provides
                otherwise, the Executive shall be informed of such change in the
                person
                exercising Employer’s rights in writing. In case of decisions passed by
                the Board of Directors regarding the exercising of the Company’s rights
                over the Executive, the Executive shall not vote and shall not be
                considered at the establishment of a quorum of
                directors.

            

    

    

    
      	
              1.6

            	
              The
                Employer and the Executive acknowledge that the Executive is considered
                as
                an executive employee under the terms of Clause 188 Paragraph (1)
                of the
                Labor Code.

            

    

    

    
      	
              1.7

            	
              As
                used in this Agreement: 

            

    

    

    
      	
            	(a)	
              The
                term “Affiliate”
                shall mean any individual, firm, corporation, partnership or other
                entity
                (each a “Person”)
                controlled by, controlling or under common control with, any other
                Person.

            

    

    

    
      	
            	(b)	
              The
                term “Company
                Group”
                shall mean the Company and its consolidated direct and indirect
                Subsidiaries, including without limitation,
                BudaSolar.

            

    

    

    
      	
            	(c)	
              The
                term “Company
                Group EBITDA”
                shall mean the net income of the Company Group for each of the five
                “Measuring Years” (as that term is defined in Clause 4.2 below), before
                deduction for interest, taxes, depreciation of tangible assets and
                amortization of intangible assets, all as determined by the auditors
                for
                Solar Thin engaged to audit the consolidated financial statements
                of Solar
                Thin, including its Company Group.

            

    

    

    
      	
            	(d)	
              The
                term “HUF”
                mean Hungarian Florint.

            

    

    

    
      	
            	(e)	
              The
                term “PV
                Equipment”
                means the machinery, equipment, software and computer hardware required
                to
                be installed at a PV Facility to enable a Person to manufacture and
                produce PV Modules; 

            

    

    

    
      	
            	(f)	
              The
                term “PV
                Facility”
                means a turn-key manufacturing facility including PV Equipment,
                converters, land and building to enable a Person to produce PV Modules;
                

            

    

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    

    
      	
            	(g)	
              The
                term “PV
                Modules”
                means amorphous silicon (“aSi”)
                photovoltaic solar panels or modules capable of producing solar
                power’

            

    

    

    
      	
            	(h)	
              The
                term “Subsidiary”
                shall mean BudaSolar and any other Person more than a majority of
                the
                share capital of which is owned directly or indirectly (through another
                Subsidiary) by the Company.

            

    

    

    
      	
              1.8

            	
              The
                Executive shall perform his duties in accordance with Hungarian law
                and
                more particularly within the provisions of all statutes governing
                the
                operation of businesses located in Hungary, this Agreement, the
                Shareholders Agreement signed by the shareholders of the Company,
                the
                Articles of association and by-laws of the Company, the rules of
                procedure
                of the Board of Directors of the Company and in accordance with such
                general and special directions and instructions which may be given
                to him
                by the Board of Directors of the Company, or the General Meeting
                of the
                Company from time to time.

            

    

    

    
      	
              1.9

            	
              The
                business of the Company, BudaSolar and the Company Group shall be
                managed
                by the Board of Directors of the Company. In such connection, transactions
                and decisions which require the approval and consent of the Board
                of
                Directors of the Company shall include, the
                following:

            

    

    

    
      	 	
              (a)

            	
              the
                sale of the business of the Company, or any part
                thereof;

            

    

    

    
      	 	
              (b)

            	
              the
                purchase of any businesses;

            

    

    

    
      	 	
              (c)

            	
              the
                establishment or closing of branches, divisions or
                subsidiaries;

            

    

    

    
      	 	
              (d)

            	
              any
                material structural changes with respect to the organisation, employees
                or
                business activities of the Company;

            

    

    

    
      	 	
              (e)

            	
              except
                as previously approved by the board of directors as part of the annual
                Budget and Plan contemplated by the Operating Guidelines, the purchase,
                sale, lease or charge of real
                property;

            

    

    

    
      	 	
              (f)

            	
              except
                as previously approved by the board of directors as part of the annual
                Budget and Plan contemplated by the Operating Guidelines, the purchase,
                sale, lease or charge of any equipment having a value in excess of
                USD
                $25,000;

            

    

    

    
      	 	
              (g)

            	
              the
                taking up of loans or other credit
                facilities;

            

    

    

    
      	 	
              (h)

            	
              the
                making of loans or entering into any credit
                facilities;

            

    

    

    
      	 	
              (i)

            	
              the
                granting of guarantees or other forms of indemnities or
                security;

            

    

    
      
         

        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    

    
      	 	
              (j)

            	
              the
                conclusion of any contracts which obligates the Company or BudaSolar
                for
                USD $100,000 or more, or which cannot otherwise be unilaterally cancelled
                by the Company or BudaSolar on 60 days notice or less, including
                without
                limitation, the acceptance of all purchase orders for PV Equipment,
                PV
                Facilities or PV Modules;

            

    

    

    
      	 	
              (k)

            	
              except
                as previously approved by the board of directors as part of the annual
                Budget and Plan contemplated by the Operating Guidelines, the increase
                in
                compensation of any employees, or the establishment of general or
                special
                pension schemes, profit sharing schemes or bonus schemes with the
                employees of the Company; 

            

    

    

    
      	 	
              (l)

            	
              any
                transaction involving any officer or director of the Company;
                or

            

    

    

    
      	 	
              (m)

            	
              the
                issuance of any securities, equity or other ownership interests or
                rights
                thereto of the Company or any other member of the Company Group.
                

            

    

    

    
      	
              2

            	
              Additional
                Duties of the Executive

            

    

    

    
      	
              2.1

            	
              The
                weekly working time of the Employee shall be 40 hours.
                The Employee defines his work schedule himself. The Executive shall
                devote
                the whole of his time, attention and abilities in the service of
                the
                Company, except for such time devoted to his duties as Chief Operating
                Officer of BudaSolar,

            

    

    

    
      	
              2.2

            	
              Without
                prior written consent of the Board of Directors of the Company, the
                Executive may not undertake other activities whether they are remunerated
                or not, except of academic or teaching activities which do not interfere
                with the Executive’s duties and obligations to the Company, BudaSolar and
                the Company Group.

            

    

    

    
      	
              3

            	
              Power
                to sign for the Company

            

    

    

    
      	
              3.1

            	
              Subject
                at all times to the Operating Guidelines and the approval of the
                President
                of the Company, the Executive is authorised to sign on behalf of
                the
                Company and BudaSolar in all matters concerning the day-to-day business
                of
                the Company and BudaSolar, and subject to the power to sign for the
                Company and BudaSolar set out in the relevant articles of association.
                

            

    

    

    
      	
              4

            	
              Remuneration

            

    

    

    
      
        	4.1	
                Salary. The
                  Executive's annual gross salary shall be the HUF amount equal to
                  USD
                  $200,000 per annum, payable in monthly installments of HUF equal
                  to (U.S.)
                  $16,666.66 each (the “Monthly
                  Salary”);
                  which Monthly Salary shall be payable in arrears within five days
                  after
                  the last business day of each month in HUF. The basis of the calculation
                  of the HUF amount shall be the daily USD/HUF exchange rate of the
                  Hungarian National Bank set out on the last business day of each
                  month.
                  The annual gross salary shall be subject to annual review by the
                  board of
                  directors of the Company. Such annual gross salary and Monthly
                  Salary
                  shall be paid to the Executive in
                  HUF.

              

      

    

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    

    
      	4.2	
              Annual
                Bonus. 
                Not less than 120 days after the end of each of the five (5) following
                calendar years: (a) 1 January 2009 and ending 31 December 2009 (the
                “2009
                Calendar Year”),
                (b) 1 January 2010 and ending 31 December 2010 (the “2010
                Calendar Year”),
                (c) 1 January 2011 and ending 31 December 2011 (the “2011
                Calendar Year”),
                (d) 1 January 2012 and ending 31 December 2012 (the “2012
                Calendar Year”),
                and (e) 1 January 2013 and ending 31 December 2013 (the “2013
                Calendar Year”),
                the Executive and Istvan Krafscik (“Krafscik”)
                shall be entitled to receive and share (in equal 50/50 amounts) a
                bonus
                (the “Annual
                Bonus”)
                which shall equal five percent (5%) of the amount, if any, by which
                the
                “Company
                Group EBITDA”
                (as defined below) shall exceed
                the
                minimum amounts set forth below in each of the five calendar years
                indicated below (the “Measuring
                Years”);
                provided, however that in no event shall the Annual Bonus payable
                in each
                Measuring Year in question exceed the Maximum Bonus set forth below
                :
                

            

    

    

    
      	 	 	
              2009 Calendar Year

            	     	
              2010 Calendar Year

            	    	
              2011 Calendar Year

            	 
	
              Minimum EBITDA

            	 	
              $

            	
              2,000,000

            	 	
              $

            	
              5,000,000

            	 	
              $

            	
              8,000,000

            	 
	 	 	 	 	 	 	 	 	 	 	 
	
              Maximum
                Bonus

            	 	
              $

            	
              1,000,000

            	 	
              $

            	
              1,500,000

            	 	
              $

            	
              2,000,000

            	 
	 	 	 	 	 	 	 	 	 	 	 

    

     

    
      	
               

            	 	
               2012 Calendar Year

            	    	
               2013 Calendar Year

            	 
	
              Minimum
                EBITDA

            	 	
              $

            	
              2,000,000

            	 	
              $

            	
              5,000,000

            	 
	 	 	 	 	 	 	 	 
	
              Maximum
                Bonus

            	 	
              $

            	
              2,500,000

            	 	
              $

            	
              3,000,000

            	 

    

    

    The
      foregoing Annual Bonus and Maximum Bonus, although expressed in United States
      dollars,
      shall be calculated in HUF and paid to the Executive and Horvath in HUF at
      the
      actual USD/HUF exchange rate published by the Hungarian National Bank on the
      day
      of the payment. 

    

    
      	
              5

            	
              Motor
                Car

            

    

    

    
      	
              5.1

            	
              The
                Company shall provide the Executive with a car of a type which the
                Company
                deems suitable for the Executive's position and area of responsibility.
                In
                connection with the commencement of the employment a car will be
                made
                available to the Executive and any subsequent replacements must be
                approved by the Board of Directors. The value of the car shall be
                in the
                range of HUF 15,000,000 (approximately USD $90,000). The Company
                shall
                cover all operating costs of said car related to use in Hungary or
                to
                business use abroad. If the Executive uses the car for private purposes
                outside Hungary, the Executive shall pay all expenses related thereto.
                

            

    

    
      
         

        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    

    
      	
              5.2

            	
              If
                this Agreement is terminated with or without notice and regardless
                of the
                reason therefor, the Executive shall return the car to the Company
                on the
                day from which his duties are suspended. The Executive is not entitled
                to
                exercise a retention right or lien on the car. Instead, the Executive
                shall receive a monthly amount equivalent to the fiscal value of
                the free
                car arrangement described in Clause 5.1 until the end of the period
                for
                which the Executive receives
                salary.

            

    

    

    
      	
              6

            	
              Telephone

            

    

    

    
      	
              6.1

            	
              The
                Company will provide the Executive with free mobile telephone, to
                be used
                primarily for business purposes. Any and all costs payable after
                the use
                of the phone shall be borne by the Company.

            

    

    

    
      	
              6.2

            	
              If
                this Agreement is terminated with or without notice and regardless
                of the
                reason therefor, the Executive shall deliver the mobile telephone
                back to
                the Company on the day from which his duties are suspended. The Executive
                is not entitled to exercise a retention right or lien on the mobile
                telephone. Instead, the Executive shall receive a monthly amount
                equivalent to the fiscal value of the free mobile telephone described
                in
                Clause 6.1 until the end of the period for which the Executive receives
                salary. The Executive is entitled to keep and use the same telephone
                number after the termination.

            

    

    

    
      	
              7

            	
              Other
                Expenses

            

    

    

    
      	
              7.1

            	
              The
                Company shall reimburse the Executive for all reasonable expenses
                incurred
                in connection with travelling and entertainment on behalf of the
                Company
                in accordance with the relevant rules of the Company in force from
                time to
                time. The Executive shall not later than the first working day of
                each
                month submit a statement of his travelling and other expenses together
                with invoices for the previous month to the Company. [At the same
                time the
                Executive shall submit a copy of this material to a board member
                designated by the Board of Directors to approve such statements.
                The Board
                of Directors shall be entitled to establish a budget for such expenses.]
                Should the Company’s EBITDA be positive then in case of traveling over the
                distance of 3000 km the Executive is entitled to business class tickets.
                

            

    

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    

    
      	
              8

            	
              Holidays

            

    

    

    
      	
              8.1

            	
              The
                Executive shall be entitled to paid annual holidays according to
                the
                relevant provisions of the Hungarian Labor
                Code.

            

    

    

    
      	
              8.2

            	
              The
                Executive shall decide the periods for his holidays after due
                consideration of the Company's business and after prior notification
                of
                the Board of Directors of the
                Company.

            

    

    

    
      	
              8.3

            	
              The
                Executive shall take his annual holidays within each current holiday
                year
                and any holidays not taken in any holiday year cannot be carried
                forward
                as transferred to a subsequent holiday year. No special holiday pay
                is
                payable to the Executive. In case of termination, the Executive shall
                take
                any accrued holidays during the period of notice and shall not be
                entitled
                to any kind of compensation if he has not been able to take holidays
                accrued prior to the termination date of this Agreement except for
                the
                case when the accrued holidays exceed the term of the notice while
                the
                Executive has to work. In this case the Executive is entitled to
                compensation for such excess.

            

    

    

    
      	
              9

            	
              Sickness

            

    

    

    
      	
              9.1

            	
              The
                Executive is entitled to receive his salary during any periods of
                sickness
                as set out by the Hungarian Labor
                Code.

            

    

    

    
      	
              10

            	
              Insurance

            

    

    

    
      	
              10.1

            	
              The
                Company shall take out accident insurance covering the Executive
                fully
                against personal accident in Hungary and abroad whether during working
                hours or on holidays.

            

    

    

    
      	
              10.2

            	
              The
                insurance shall include coverage in respect of accidental death or
                accidental permanent disablement.

            

    

    

    
      	
              11

            	
              Confidentiality
                etc.

            

    

    

    
      	
              11.1

            	
              The
                Executive shall keep secret and shall not at any time whether during
                this
                employment or after the termination thereof for whatever reason use
                for
                his own and/or any other person's advantage or disclose to any third
                party
                any information about the Company, BudaSolar the Company Group, Solar
                Thin
                or other group companies' internal matters, including especially
                in
                relation to the financial situation, business activities, customers
                and
                employees, in so far as such information is confidential or a business
                secret.

            

    

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    
      	
              11.2

            	
              The
                Executive shall promptly communicate to the Company all ideas, inventions,
                modifications, improvements, processes, formulae, materials, know-how,
                designs, models, prototypes, trademarks, sketches, drawings, plans
                and
                other matters (intellectual property) (whether or not capable of
                protection by any contractual, statutory or other form of protection
                of
                intellectual property) which at any time during the term of the
                Executive's employment the Executive alone or jointly with others
                may
                devise or discover in the course of the Executive's performance for
                the
                Company Group of his duties. Subject to the provisions under Hungarian
                laws such intellectual property rights including all financial rights
                deriving there from shall belong to the Company Group Company or
                the
                respective Company Group company without payment of any additional
                consideration. The Parties agree that any fees that could otherwise
                be
                payable to the Executive are considered as covered by the remuneration
                of
                the Executive set out in this agreement as well as his share capital
                equity in the Company, especially with view to the fact that the
                development of the above mentioned intellectual property comprises
                an
                obligation of the Executive arising from his employment with the
                Company.
                

            

    

     

    
      	
              11.3

            	
              The
                Executive undertakes to sign such statements and permits as are required
                by the Company and the Company Group for the purpose of transferring,
                registering or obtaining the above mentioned rights in the name of
                the
                Company and the Company Group.

            

    

    

    
      	
              11.4

            	
              Upon
                termination of his employment for whatever reason the Executive shall
                return to the Company all material, reports, manuals, correspondence,
                files, customer lists and other material belonging to the Company.
                The
                Executive shall not be entitled to exercise a retention right or
                lien on
                such materials.

            

    

    

    
      	
              12

            	
              Termination;
                Severance Pay

            

    

    

    
      	
              12.1

            	
              The
                employment shall automatically terminate 31 December 2014 as set
                out in
                Clause 1.1. 

            

    

    

    
      
        	12.2	
                (a)  Beyond
                  the case in Clause 12.1. the employment relationship can be terminated
                  prior to 31 December 2014 by (i) mutual agreement, by (ii) extraordinary
                  termination, or (iii) upon exercise of the “Call Option” or the “Buy-Out
                  Option” (as those terms are defined in the Share Exchange Agreement) and
                  the payment to the Executive in cash of the full Call Option Price
                  or
                  Buy-Out Option Price (as those terms are defined in the Share Exchange
                  Agreement). 

              

      

    

    

    (b)  In
      the
      event that:

    

    (i)
      the
      Call Option or the Buy-Out Option is exercised and paid in full and
      the
      Company thereafter elects to terminate the employment of the Executive pursuant
      to clause (iii) of Clause 12.2(a) above for reasons other
      than an
      extraordinary termination, or 

    

    (ii)
      the
      Executive shall terminate this Agreement by reason of the occurrence of one
      or
      more events described in Clause 12.2(d) below, 

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    

    then
      and
      in either event, the non-competition provisions set forth in Section 8.4 of
      the
      Share Exchange Agreement shall terminate.

    

    (c)
       The
      Company or the Executive may terminate the employment relationship by
      extraordinary termination in the event that the other party (i) willfully or
      by
      gross negligence commits a grave violation of any substantive obligations
      arising from the employment relationship, or (ii) otherwise engages in conduct
      rendering further existance of the employment relationship impossible.

    

    For
      the
      avoidance of doubt, the Company shall have grounds for extraordinary termination
      of the employment of the Executive, if the Executive (a) is convicted of any
      crime or other felony, (b) misappropriates any funds, business, opportunity
      or
      other benefit belonging to the Company, (c) engages in any competitive
      activities, (d) fails to devote his full business and professional time to
      the
      affairs of the Company and the Company Group, (e) is in material breach of
      his
      obligations under this Agreement or otherwise fails or refuses, after written
      notice of not less than twenty (20) days, to following the reasonable requests
      and direction of the Board of Directors of the Company, or (f) engages in any
      other act or omission that would constitute gross negligence, fraud or
      dereliction of his duties hereunder. In any of these events committed by the
      Executive, the Executive shall be entitled to receive no further benefits
      (including Annual Bonus) under this Agreement from and after the date of
      termination. 

    

    (d)  Grounds
      for extraordinary termination by the Executive are limited to (i) a material
      change without just cause in the nature of the Executive’s duties hereunder,
      (ii) the failure by the Company to timely pay the compensation to which the
      Executive shall be entitled to receive under this Agreement, (iii) after the
      expiration of all periods to cure any such default, the failure of Solar Thin
      Films, Inc. to perform the material covenants and agreements on its part to
      be
      performed under Section
      8.5
      of the
      Share Exchange Agreement (the “Buy-out Right”) or Section
      8.6
      of the
      Share Exchange Agreement (the “Call Option”), or (iv) after the expiration of
      all periods to cure any such default, the failure of Solar Thin Films, Inc.
      or
      the Company to perform any of the material covenants and agreements on their
      part to be performed under the Shareholders Agreement among the Company and
      its
      shareholders, including the Executive.

    

    
      	
              12.3

            	
              If
                the Company terminates the employment of the Executive in for any
                reason
                other
                than as described in Clause 12.2. then the Executive shall be entitled
                to
                receive severance pay equal to 

            

    

    

    (a)
      his
      Monthly Salary (payable in equal monthly installments) for a period equal to
      the
      duration of the five (5) year period of the Executive’s non-competition
      agreement set forth in the Stock Exchange Agreement (unless the Company and
      the
      Executive mutually agreement to terminate such non-competition agreement; in
      which event severance pay shall be limited to three months salary commencing
      from the date of termination of such non-competition agreement), and

    
      
         

        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    

    (b)
      any
      Annual Bonus to which the Executive would otherwise be entitled to receive
      in
      the Measuring Year in which such termination occurs but at least an Annual
      Bonus
      equal to the amount of the Annual Bonus received by the Executive through the
      twelve (12) month period prior such termination.

    

    
      	
              12.4

            	
              In
                case of termination the Company is obliged to hand over the salary,
                the
                reimbursement of the remaining vacation leave, certifications to
                the
                Executive that are due to the Executive according to the rules of
                the
                Labor Code on the last working day of the
                Executive.

            

    

    

    
      	
              12.5

            	
              On
                the information set forth in Clause 76 (7) of the Labour
                Code:

            

    

    

    1.
      Standard work order: The Executive has flexible work order.

    

    2.
      Other
      components of the salary: Annual Bonus according to Clause 4.2 of the
      Agreement.

    

    3.
      Day of
      payment: in arrears within five days after the end of the last business day
      of
      each month.

    

    4.
      Date
      of entry into work: see Clause 1.1 of the Agreement. 

    

    5.
      Calculation method and the granting of ordinary holiday: see Clause 8.2 and
      8.3
      of the Agreement. The Executive is entitled to holiday days per year established
      by Clause 131 of the Labour Code.

    

    6.
      Notice
      period: none.

    

    
      	
              12.6

            	
              The
                provisions of this agreement shall be governed by and construed in
                accordance with the laws of Hungary (excluding any conflict of law
                rule or
                principle that would refer to the laws of another jurisdiction) Any
                dispute, controversy or claim arising out of or relating to this
                agreement, or the breach, termination or invalidity thereof, shall
                be
                settled exclusively in Hungarian
                Court.

            

    

    

    The
      balance of this page intentionally left blank - signature page
      follows

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF, this Agreement has been executed the date any year first above
      written in Budapest, Hungary.

    

    
      	
              STF
                TECHNOLOGIES, ZRT.

            	
               

            	
              The
                Executive:

            
	 	 	 
	 
	 	 

	 	 	
              ATTILA
                HORVATH

            

    

    

    The
      undersigned does hereby guaranty the payment and performance of the Employer
      under the above Employment Agreement.

    

    SOLAR
      THIN FILMS, INC.

    

    _______________________________

    Peter
      C.
      Lewis, President

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    OPERATING
      GUIDELINES

    

    1. On
      or
      before January 1st
      in each
      year (commencing 2009), the President of the Company and the Executive shall
      submit an annual budget and business plan for research, sales, marketing,
      product development and strategy, and operations, including product fulfilment
      (the “Budget
      and Plan”)
      to the
      Board of Directors of the Company for approval. If approved (or modified by
      the
      Board of Directors), the Executive (subject to the approval of the President
      of
      the Company) shall have the authority to operate and make expenditures within
      such approved Budget and Plan. As part of the Budget and Plan, the Executive
      shall submit to the Chief Executive Officer of Solar Thin Films, Inc., the
      President of the Company and the Board of Directors of the Company proposed
      pricing and sales terms for all PV Equipment to be sold and marketed by the
      Company. Any deviation from such approved Budget and Plan shall require the
      Board of Directors of the Company. 

    

    2. Subject
      to the approval of the President of the Company, the Executive will have
      authority to negotiate PV Equipment sales within the parameters of all such
      pricing and sales terms and to execute contracts and purchase orders with
      respect thereto on behalf of the Company and BudaSolar; provided,
      that
      the final terms and conditions of all PV Equipment sales contracts and other
      purchase orders shall be reviewed and approved in advance of signing by the
      Executive by the Board of Directors of the Company or by the Chief Executive
      Officer of Solar Thin Films, Inc. (pursuant to authority expressly granted
      to
      such person by or by the Board of Directors of the Company).

    

    3. The
      finance and accounting group of the Company will report to the Chief Financial
      Officer of Solar Thin. Responsibility for auditing, reporting and compliance
      will reside with the Chief Financial Officer of Solar Thin, and the Controller
      or other senior financial officer of the Company will have a reporting
      relationship to the Chief Financial Officer of Solar Thin Films, Inc.. With
      respect to the day-to-day accounting and finance functions such as purchasing,
      receiving, cash management, cost accounting, the Controller or other senior
      financial officer of the Company will report through the Executive or such
      other
      senior officer of the Company as designated by the Executive. 

     

    
      
        
        

      

      
        13

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