Document:

MASTER
      SETTLEMENT AGREEMENT

    

    among

    

    SOLAR
      THIN FILMS, INC.

    

    KRAFT
      ELEKTRONIKAI ZRT

    

    ZOLTAN
      KISS

    

    AMELIO
      SOLAR, INC. 

    

    and
      

    

    RENEWABLE
      ENERGY SOLUTIONS, INC. 

    

    dated
      as of August 12, 2008

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    MASTER SETTLEMENT
      AGREEMENT

     

    THIS
      MASTER SETTLEMENT,
      dated
      as of August 12, 2008 (the “Agreement”),
      is
      made and entered into by and among SOLAR
      THIN FILMS, INC., a
      Delaware corporation (the “Company”);
      KRAFT
      ELEKTRONIKAI ZRT,
      a
      corporation organized and existing under the laws of Hungary (“Kraft”);
      AMELIO
      SOLAR, INC.,
      a
      Delaware corporation (“Amelio”);
      RENEWABLE ENERGY SOLUTIONS, INC.,
      a
      Delaware corporation (“RESI”);
      and
ZOLTAN
      KISS,
      an
      individual (“Z.
      Kiss”).
      

     

    The
      Company, Kraft, Amelio, RESI and Z. Kiss are hereinafter sometimes individually
      referred to as a “Party”
and
      collectively as the “Parties.”
Except
      as otherwise provided herein, capitalized terms and terms in quotes are defined
      in Article I unless otherwise defined in the text.

     

    INTRODUCTION

     

    This
      Agreement is made and entered into by the Parties with reference to the
      following:

     

    A. Reference
      is made to: (i) a certain Cooperative R&D Contract, dated December 19, 2006
      between RESI and the Company (the “R&D
      Contract”);
      and
      (ii) a certain Marketing and Manufacturing Facility Turn On Function Contract,
      dated January 30, 2007 between RESI and the Company (the “Marketing
      and Turn-On Contract”).

     

    B RESI,
      an
      Affiliate of Z. Kiss, is currently indebted to the Company and/or its
      Subsidiaries for goods and services rendered to or on behalf of RESI in the
      aggregate amount of the “RESI
      Debt.”
      

     

    C. Certain
      issues and disputes have arisen between the Company, RESI and Z. Kiss with
      respect to various matters, involving the respective legal rights and
      obligations of the parties, certain claims in respect of actions take or omitted
      by the Parties and for amounts allegedly owed and certain other matters (all
      of
      the foregoing, collectively, referred to as the “Disputed
      Issues”).

     

    D. 
      The
      Amelio Group has prior to the “Closing
      Date”
      succeeded to the assets and businesses of RESI constituting the “PV
      Technology”
and
      all
      related rights thereto relating to the design, development, manufacture and
      sale
      of PV Equipment and PV Modules, including all “a-Si
      Technology”
and
      “CIGS
      Technology”
as
      such
      terms are defined herein or in the Collateral Documents.

     

    E. The
      Parties hereto desire, pursuant to this Agreement and the “Collateral
      Documents”
to
      (i)
      resolve and release all of the Disputed Claims and any and all other claims
      that
      among the Parties as provided for in the “Mutual
      Releases”,
      (ii)
      arrange for the purchase by the Company or its designee of all of the shares
      of
“Company
      Common Stock”
owned
      by Z. Kiss in the Company pursuant to the “Stock
      Purchase Agreement”,
      and
      (iii) establish an ongoing working relationship between the STF Group and Amelio
      with respect to the future manufacture, sale and distribution of PV Equipment,
      PV Modules, “Turnkey
      PV Module Manufacturing Facilities”
using
      all PV Technology developed or acquired by the STF Group or the Amelio Group,
      pursuant to the “Strategic
      Alliance and Cross License Agreement”.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    NOW,
      THEREFORE,
      in
      consideration of the mutual covenants and agreements hereinafter contained,
      the
      Parties hereto intending to be bound thereby, hereby agree as
      follows:

     

    ARTICLE
      I

     

    DEFINITIONS

     

    In
      addition to the other terms defined elsewhere in this Agreement, the following
      capitalized terms shall have the meanings specified below.

     

    Affiliate.
      The
      term “Affiliate” shall mean, with respect to any Person, any other Person
      controlling, controlled by or under common control with such Person. The term
      “control” as used in the preceding sentence means the possession, directly or
      indirectly, of the power to direct or cause the direction of the management
      or
      policies of such Person, whether through the ownership of voting securities,
      by
      agreement or otherwise.

     

    Amelio
      Group. The
      term
“Amelio Group” shall mean and include Amelio, RESI and Z. Kiss, and any direct
      and indirect Subsidiaries or Affiliates of such Persons, whether now existing
      or
      hereafter formed or acquired.

     

    Amelio
      Group Releases. The
      term
“Amelio Group Releases” shall mean the general release(s) to be executed and
      delivered on the Closing Date by each member of the Amelio Group to the STF
      Group, in the form of Exhibit
      II
      annexed
      hereto and made a part hereof.

     

    Amelio
      Undertaking.
      The
      term “Amelio Undertaking” has the meaning set forth in Section
      3.4(b).

     

    Business
      Day.
      The term
“Business Day”
      shall
      mean
      any day
      on which the banks in New York City, New York, are open for business (excluding
      Saturday, Sunday and federal holidays).

     

    CG
      Solar. The
      term
“CG Solar” shall mean CG Solar, formerly known as Weihai Blue Star Terra
      Photovoltaic Company, a corporation organized under the laws of the People’s
      Republic of China. 

     

    CG
      Solar Contract. The
      term
“CG Solar Contract” shall mean the agreement dated ____________ among RESI, the
      Company and CG Solar, pursuant to which RESI and the Company (through its Kraft
      Subsidiary) have been engaged as contractors to manufacture and install a
      TurnKey PV Module Manufacturing Facility in WeHai Shangdong, China for CG Solar
      or its Affiliate(s).

     

    CG
      Solar Resolution. The
      term
“CG Solar Resolution” means satisfactory resolution of any open contractual
      issues between or among CG Solar and any of the Parties hereto.

     

    Closing. The
      term
“Closing” shall mean the date of delivery of this Agreement and the Collateral
      Documents and the consummation of the transactions specified in Article
      III.

     

    
      
        
        

      

      
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    Closing
      Date.  The
      term
“Closing Date” shall mean the date of Closing; provided, that without the prior
      written consent of the Amelio Group, the Closing Date shall not occur later
      than
      the Outside Closing Date.

     

    Collateral
      Documents.
      The
      term
“Collateral Documents” means the collective reference to the Mutual Releases,
      the Stock Purchase Agreement and the Strategic Alliance and Cross License
      Agreement.

     

    Common
      Stock. The
      term
“Common Stock” shall mean the shares of common stock, $0.01 par value per share
      of the Company.

     

    Contemplated
      Transaction.
      The term
“Contemplated Transaction” shall mean all of the transactions contemplated by
      this Agreement, including the execution, delivery, and performance of the
      Collateral Documents and any exhibits thereto, and any other documents delivered
      pursuant hereto and thereto.

     

    Existing
      Agreements. 
      The term
“Existing Agreements” shall mean the collective reference to the Existing RESI
      Agreements and the Kiss Consulting Agreement.

     

    Existing
      RESI Agreements. The
      term
“Existing RESI Agreements” shall mean the collective reference to the R&D
      Contract and the Marketing and Turn-On Contract referred in Paragraph A of
      the
      INTRODUCTION to this Agreement, and any modifications or amendments
      thereto.

     

    Financing. 
      The term
“Financing” shall mean the public or private sale of $10,000,000 or more of
      units of securities (the “Units”)
      consisting of shares of Company Common Stock and/or warrants to purchase Company
      Common Stock, but which Financing shall include (i) the sale of all or a portion
      of the 18,000,000 Subject Shares for the account of the Sellers, and (ii) the
      sale of additional shares of Common Stock for the account of the Company;
provided,
      that:
      

     

    (a) the
      sale
      and issuance by the Company of its Common Stock or other securities convertible
      into or exercisable for shares of Company Common Stock shall be at a price
      per
      share or conversion or exercise price per share of $3.30 or more;
      and

     

    (b) such
      Financing shall contemplate the purchase by the Company and/or one or more
      Persons designated by the Company (including public investors) of an aggregate
      of 18,000,000 shares of Company Common Stock from Z. Kiss, Joseph Gregory Kiss
      and Marla Gabriella Kiss pursuant to the Stock Purchase Agreement.

     

    Governmental
      Entity.
      The
      term
“Governmental
      Entity”
      shall
      mean any (a) nation, state, county, city, town, village, district, or other
      jurisdiction of any nature; (b)federal, state, local, municipal, foreign, or
      other government; (c) governmental or quasi-governmental authority of any nature
      (including any governmental agency, branch, department, official, or entity
      and
      any court or other tribunal); (d) multi-national organization or body; or (e)
      body exercising, or entitled to exercise, any administrative, executive,
      judicial, legislative, police, regulatory, or taxing authority or power of
      any
      nature.

     

    
      
        
        

      

      
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    Kiss
      Consulting Agreement.  The
      term
“Kiss Consulting Agreement” shall mean that certain consulting agreement, dated
      __________ between the Company and Z. Kiss and any modifications or amendments
      thereto.

     

    Mutual
      Releases. The
      term
“Mutual Releases” means the comprehensive releases to be executed by the Parties
      at the Closing, including the Amelio
      Group Releases
      in the
      form attached as Exhibit
      II
      to this
      Agreement and the STF
      Group Releases
      in the
      form attached as Exhibit
      III
      to this
      Agreement.

     

    Outside
      Closing Date. The
      term
“Outside Closing Date” shall mean 5:00 p.m. (Eastern Standard Time) on November
      30, 2008 provided,
      however,
      that
      (i) such Outside Closing Date may be extended by mutual agreement of the Company
      and the Sellers’ Agent (as defined in the Stock Purchase Agreement), and (ii) if
      the Company’s registration statement on Form S-1 has not been declared effective
      by the Securities and Exchange Commission by the above November 30, 2008 Outside
      Closing Date, if the Sellers’ Agent shall receive reasonable assurances from
      Maxim Group LLC or other investment banking firm underwriting securities on
      behalf of the Company and the Sellers in the “Financing”,
      as
      defined and described in the Stock Purchase Agreement, that in their judgment
      such Financing will be consummated, the Sellers’ Agent shall
      extend
      the Outside Closing Date to January 31, 2009.

     

    Person . The
      term
“Person” shall mean any individual, partnership, joint venture, firm,
      corporation, association, limited liability company, trust or other enterprise
      or any governmental or political subdivision or any agency, department or
      instrumentality thereof.

     

    PV. The
      term
“PV” shall mean photovoltaic.

     

    PV
      Equipment. The
      term
“PV Equipment” shall mean a-Si Equipment, CIGS Equipment and all other items of
      machinery, equipment, parts, components and Software deploying PV Technologies
      that are used or useful to manufacture and produce equipment to enable an owner
      or operator of such equipment to manufacture or produce PV Modules.

     

    PV
      Modules. The
      term
“PV Modules” shall mean PV cells or modules, whether based on a-Si Technology,
      CIGS Technology or other PV Technologies.

     

    PV
      Technologies. The
      term
“PV Technologies” shall mean the collective reference to (i) a-Si Technology,
      (ii) CIGS Technology, (iii) microcrystalline a-Si Technology, or (iv) any other
      development, improvements, additions or technologies now or hereafter developed
      that are used as a coating or other material to deposit the active layer on
      PV
      Modules or in PV Equipment.

     

    Qualified
      Financing.
      The
      term
“Qualified Financing” has the meaning set forth in Section 3.5.

     

    RESI
      Debt.
      The
      term “RESI Debt” means the net amount of indebtedness, net of fees payable under
      the Existing Agreements to the Closing Date, and not to exceed $1,331,863 owed
      by RESI to the Company or its Affiliates as of the Closing Date.

     

    RESI
      Debt Settlement Deliverables.
      The
      term
“RESI Debt Settlement Deliverables” means the documents specified in
Section
      3.5
      to be
      delivered by Z.Kiss and RESI at the Closing.

     

    
      
        
        

      

      
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    Stock
      Purchase Agreement.
      The
      term
“Stock Purchase Agreement” means that certain stock purchase agreement among the
      Company, Z. Kiss, Gregory Joseph Kiss, Marla Gabriella Kiss and Steven H. Gifis,
      as Sellers’ Agent, in the form attached as Exhibit
      I
      hereto.

     

    Strategic
      Alliance and Cross License Agreement.
      The
      term
“Strategic Alliance and Cross License Agreement” is attached hereto as
Exhibit
      IV
      and has
      the meaning therein. 

     

    STF
      Group. The
      term
“STF Group” shall mean and include the Company, together with its wholly-owned
      Subsidiaries, Kraft and Superior Ventures Corp. and its majority-owned
      Subsidiary, Solar Thin Power, Inc., and any future direct and indirect
      Subsidiaries or Affiliates of the Company.

     

    STF
      Group Releases. The
      term
“STF Group Releases” shall mean the general release(s) to be executed and
      delivered on the Closing Date by the STF Group to each member of the Amelio
      Group and their respective officers, directors and stockholders, in the form
      of
Exhibit
      III
      annexed
      hereto and made a part hereof, 

     

    Subsidiary. The
      term
“Subsidiary” shall mean any Person of which a majority of the outstanding voting
      securities or other voting equity interests are owned, directly or indirectly,
      by any other Person.

     

    Turnkey
      PV Module Manufacturing Facilities.
      The term
“Turnkey PV Module Manufacturing Facilities” shall mean the collective reference
      to all PV Equipment and related components and software that are installed
      in
      any facility owned and operated by any Person to enable such Person to produce
      PV Modules in all PV Technologies.

     

    ARTICLE
      II

     

    REPRESENTATIONS
      AND WARRANTIES OF THE PARTIES

     

    Except
      as
      set forth on a referenced “Schedule” to this ARTICLE II, each of the Parties
      hereby represents and warrants to the other Parties as follows:

     

    2.1. Organization
      and Good Standing.
      If such
      Party is an entity, it is duly organized, validly existing and in good standing
      under the laws of the state of its organization, has all requisite power and
      authority to own, lease and operate its properties and to carry on its business
      as now conducted, is duly qualified or authorized to do business as a foreign
      corporation and is in good standing under the laws of each jurisdiction in
      which
      it owns or leases real property and each other jurisdiction in which the conduct
      of its business or the ownership of its properties requires such qualification
      or authorization, except where the failure to be so qualified, authorized or
      in
      good standing does not have and would not reasonably be expected to have
      material adverse effect on such Party.

     

    
      
        
        

      

      
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    2.2. Authorization
      of Agreement.
      Such
      Party has all requisite power and authority (i) to enter into and deliver this
      Agreement and the Collateral Documents and other documents provided for herein
      to which it is a party and to carry out the transactions contemplated hereby
      and
      by each other agreement, document, or instrument or certificate contemplated
      by
      this Agreement, (ii) to enter into and deliver all documents required or
      necessary to be executed by it in connection with the consummation of the
      transactions contemplated by this Agreement (collectively the “Documents”),
      and
      (iii) to consummate the contemplated transactions. This Agreement has been
      and
      the Documents will be when delivered duly and validly executed and delivered
      hereunder and (assuming the due authorization, execution and delivery by the
      other parties hereto and thereto) this Agreement constitutes and the Documents
      will constitute when delivered the legal, valid and binding obligations of
      such
      Party, enforceable against it in accordance with their terms, subject to
      applicable bankruptcy, insolvency, reorganization, moratorium and similar laws
      affecting creditors’ rights and remedies generally, and subject, as to
      enforceability, to general principles of equity, including principles of
      commercial reasonableness, good faith and fair dealing (regardless of whether
      enforcement is sought in a proceeding at law or in equity).

     

    2.3. No
      Conflict. Except
      as
      set forth on Schedule
      2.3 hereto,
      neither of the execution and delivery by the Party of this Agreement and of
      the
      Documents, nor the compliance by such Party with any of the provisions hereof
      or
      thereof will (i) conflict with, or result in the breach of, any provision of
      the
      governing documents of such Party , (ii) conflict with, violate, result in
      the
      breach of, or constitute (with or without due notice, lapse of time or both)
      a
      default under, result in the acceleration of, create in any Person the rights
      to
      accelerate, terminate, modify or cancel, or require any notice, consent or
      waiver under, any note, bond, mortgage, indenture, license, agreement or other
      obligation to which such Party is a party or by which such Party or any of
      its
      properties or assets are bound or (iii) violate any statute, rule, regulation,
      order or decree of any government agency by which such Party is bound, except,
      in the case of clauses (ii) and (iii), for such violations, breaches or defaults
      as would not, individually or in the aggregate, have a material adverse effect
      on such Party.

     

    2.4. Except
      as
      set forth in Schedule
      2.4,
      no
      consent, waiver, approval, order, permit or authorization of, or declaration
      or
      filing with, or notification to, any Person or government agency is required
      on
      the part of such Party in connection with the execution and delivery of this
      Agreement or the Documents or the compliance by such Party with any of the
      provisions hereof or thereof.

     

    2.5. Litigation.
      Except
      as would not reasonably be expected to have a materially adverse effect on
      the
      ability of a Party to close hereunder or as set forth on Schedule
      2.5
      hereto,
      (a) there is no proceeding now in progress or pending or, to the knowledge
      of
      the Party, threatened against the Party or any Affiliate or the assets or the
      business of the Party and (b) such Party is not subject to any order, writ,
      injunction or decree of any court or other government agency. 

     

    2.6. Compliance
      with Laws; Permits.
      Except
      as provided on Schedule
      2.6 hereto,
      each Party (a) has complied in all respects with all federal, state, and local
      laws, rules, ordinances, codes, consents, authorizations, registrations,
      regulations, decrees, directives, judgments and orders applicable to it and
      its
      business other than where noncompliance would not, individually or in the
      aggregate, reasonably be expected to have a material adverse effect and (b)
      has
      all federal, state, and local governmental permits necessary in the conduct
      of
      its business as currently conducted and to own and use its assets in the manner
      in which such assets are currently owned and used other than where the failure
      to possess such permits would not, individually or in the aggregate, reasonably
      be expected to have a material adverse effect, such permits are in full force
      and effect, and no violations have been recorded in respect of any such permit,
      and no proceeding is pending or, to the best knowledge of the Party, threatened
      to revoke or limit any such permit. 

     

    
      
        
        

      

      
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    2.7. Brokers.
      No
      Party nor any of their respective directors, officers, employees or
      representatives has employed any broker or finder in connection with the
      contemplated transactions.

     

    ARTICLE
      III

     

    
      COVENANTS,
        CONDITIONS AND CLOSING

    

     

    3.1. Consents
      and Approvals.
      Each
      Party hereby covenants and agrees to use its commercially reasonable efforts
      to
      fulfill its obligations hereunder and under the Collateral Documents. In
      addition, the Parties to this Agreement agree to refrain, directly or indirectly
      from utilizing any information, materials, or equipment of any kind, or type
      in
      any way or nature other than as contemplated hereunder. Further, neither Party
      will circumvent the intent or spirit of this agreement or a Party by attempting
      to take advantage of materials, equipment, or research and development performed
      by the other Party. Each of the Parties recognize that the provisions of this
      Section
      3.1
      and
Section
      3.2
      below
      are an essential and material part of this Agreement and the Collateral
      Documents.

     

    3.2. Conditions
      to Closing.
      The
      obligations of the Parties to consummate the transaction contemplated by this
      Agreement are subject to the satisfaction of each of the following conditions
      on
      or before the Closing Date:

     

    (a) Representations
      and Warranties. The
      representations and warranties of the Parties contained in this Agreement shall
      have been true and correct in all material respects on the date of this
      Agreement and shall be true and correct in all material respects at and as
      of
      the Closing Date as though made as of the Closing Date, except to the extent
      that such representations and warranties shall have been updated to the Closing
      Date without material change, or are qualified by the term “material,” or
      contain a term such as “Material Adverse Change,” in which case such
      representations and warranties (as so written) shall be true and correct in
      all
      respects on the date of this Agreement and as of the Closing Date; 

     

    (b) Covenants. The
      Parties shall have duly performed and complied in all material respects with
      all
      covenants and obligations required by this Agreement to be performed or complied
      with by the Parties on or prior to the Closing, except to the extent that such
      covenants are qualified by the term “material,” or contain a term such as
“Material Adverse Change,” in which case such covenants (as so written) shall be
      true and correct in all respects on or prior to the Closing Date;

     

    (c)
       Absence
      of Litigation.
      No
      action or proceeding shall be pending by or before any court or other
      Governmental Entity seeking to restrain, prohibit or invalidate the Contemplated
      Transactions;

     

    (d) Additional
      Agreements/Documents.
      Execution and delivery of the Stock Purchase Agreement, Amelio Group Release,
      STF Group Release, and the Strategic Alliance and Cross License Agreement,
      all
      in the form attached hereto as Exhibits
      I, II, III, and IV;
      

     

    
      
        
        

      

      
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    (e) Non-Competition
      and Non-Solicitation Agreement.
       Execution and delivery of a non-competition and non-solicitation agreement
      between Amelio, Z. Kiss and RESI (“Non-Competition
      and Non-Solicitation Agreement”)
      containing non-competition and non-solicitation covenants and agreements of
      RESI
      and Z. Kiss; which Non-Competition and Non-Solicitation Agreement shall
      expressly name STF as a third party beneficiary to such non-competition and
      non-solicitation covenants and agreements, and shall (as to such provisions)
      be
      in form and content acceptable to STF in the exercise of its sole
      discretion.

     

    (f) Financing. Consummation
      of the Financing by the Company; and 

     

    (g)
       General.
      All
      actions to be taken by the Parties in connection with consummation of the
      transactions contemplated hereby and all other documents required to effect
      the
      transactions contemplated hereby will be reasonably satisfactory in form and
      substance to the Parties.

     

    3.3. Closing.
      As
      a part
      of a simultaneous Closing, on the Closing Date the Parties shall execute and
      exchange the following Collateral Documents:

     

    (a) Amelio.
      Amelio
      shall deliver fully executed copies of the Collateral Documents to which it
      is a
      party, including:

     

    (i) Amelio
      Group Releases; and

     

    (ii) Strategic
      Alliance and Cross License Agreement.

     

    (b) STF
      Group.
      The
      applicable members of the STF Group shall deliver fully executed copies of
      the
      Collateral Documents to which they are a party, including.

     

    (i) STF
      Group
      Releases; 

     

    (ii) Stock
      Purchase Agreement; and

     

    (iii) Strategic
      Alliance and Cross License Agreement.

     

    (c) Z.
      Kiss and RESI.
      Z. Kiss
      and RESI shall deliver fully executed copies of the following Collateral
      Documents to which they are a party:

     

    (i) Amelio
      Group Releases; 

     

    (ii) Stock
      Purchase Agreement; and

     

    (iii) RESI
      Debt
      Settlement Deliverables.

     

    3.4. RESI
      Debt Settlement Payment and Deliverables.
      The
      Parties hereto acknowledge that as at the date of this Agreement, RESI is
      currently indebted to the Company or its Subsidiary in the amount of $1,331,863
      in respect to the RESI Debt. On the Closing Date, the RESI Debt shall be settled
      and paid, as follows: 

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    (a) Z.
      Kiss
      shall pay to the Company (out of the proceeds received by him from the sale
      of
      his 10,000,000 Subject Shares under the Stock Purchase Agreement) the aggregate
      sum of $434,315 and, to the extent not previously paid, an additional amount
      equal to the “RESI Debt Balance” described in Section
      3.4(c)
      below
      (the “Settlement
      Payment”);
      

     

    (b) Z.
      Kiss
      shall cause RESI to transfer to the Company an aggregate number of shares of
      CG
      Solar, formerly known as Weihai Blue Star Terra Photovoltaic Company, a
      corporation organized under the laws of the People’s Republic of China
      (“CG
      Solar”)
      representing five (5%) of the issued and outstanding capital shares of CG Solar,
      and having an agreed upon value of $500,000 (the “Transferred
      CG Solar Equity”);
      and

     

    (c) If
      not
      paid prior to the Closing Date, the remaining $397,548 (the “RESI
      Debt Balance”)
      shall
      be paid to the Company on the earliest
      to occur
      of: (i) on the Closing Date as an additional deduction from the proceeds
      otherwise payable to Z. Kiss as the purchase price under the Stock Purchase
      Agreement from the sale of his 10,000,000 shares of Common Stock of the Company;
      (ii) out of the net proceeds of a financing by Amelio (the “Amelio
      Financing”);
      provided,
      that
      such Amelio Financing shall be not less than $10,000,000; or (iii) January
      31,
      2009. To the extent that the RESI Debt Balance shall be paid on the Closing
      Date
      pursuant to Section
      3.4(c)(i)
      above,
      then Amelio shall issue to Z. Kiss its promissory note due and payable on the
      earlier to occur consummation of the Amelio Financing or one year from the
      Closing Date. Amelio hereby agrees to guaranty payment of the RESI Debt Balance
      to the Company. 

     

    3.5. Termination
      of Existing Agreements.
      As at
      the Closing Date, all of the Existing Agreements, including, without limitation,
      the R&D Contract and the Marketing and Turn-On Contract are hereby
      terminated and rendered null and void. Except as expressly provided in the
      Strategic Alliance and Cross License Agreement, no Party to any of the Existing
      Agreements shall have any further rights or obligations thereunder from and
      after the Closing Date, and all financial obligations, if any, of any of the
      Parties to the Existing Agreements shall be deemed fully paid and
      extinguished.

     

    3.6. Termination
      of All Disputed Issues. On
      the
      Closing Date, all Disputed Issues among any or all of the Parties hereto or
      their Affiliates shall be deemed to be fully resolved and settled.

     

    3.7. Simultaneous
      Closings. Consummation
      of the transactions contemplated by this Agreement shall occur simultaneous
      with, and is subject to and conditioned upon, the consummation of the
      transactions contemplated by the Stock Purchase Agreement and the execution
      and
      delivery of all of the Exhibits to this Agreement.

     

    ARTICLE
      IV

     

    ADDITIONAL
      AGREEMENTS OF THE PARTIES

     

    4.1. Limited
      Scope of Collateral Agreements. Subject
      at all times to the continued compliance by RESI and Z. Kiss of their
      obligations under the restrictive covenants set forth in Section
      3.2
      of this
      Agreement, it is expressly understood and agreed among all Parties hereto that,
      each of the Amelio Group and the STF Group may individually (a) engage, directly
      or with third Persons, in the development, design and exploitation of a-Si
      Technology, microcrystalline a-SI Technology or any development, improvements,
      additions or technologies now or hereafter developed (other than CIGS
      Technology) that are used as a coating or other material to deposit the active
      layer on PV Modules or in PV Equipment; and (b) manufacture, sell, distribute
      or
      otherwise deal in PV Equipment, PV Modules, Turnkey PV Module Manufacturing
      Facilities or power plants or projects, that use any PV Technologies, other
      than
      CIGS Technology, without regard to this Agreement or any obligation to any
      other
      Party or Parties to this Agreement. 

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    4.2. Competition. Except
      only to the extent expressly provided in Section
      3.2
      of this
      Agreement and in the Collateral Documents, it is expressly understood and agreed
      that each of the Amelio Group and the STF Group are free to engage in activities
      that may or shall compete with the other throughout the world. 

     

    ARTICLE
      V

    MISCELLANEOUS

     

    5.1. Expenses.
      Whether
      or not the transactions contemplated hereby are consummated, each Party shall
      bear its own costs and expenses incurred in connection with this Agreement
      and
      the transactions contemplated hereby

     

    5.2. Construction
      of this Agreement.
      All of
      the Parties to this Agreement have participated jointly in the negotiation
      and
      drafting of this Agreement. In the event any ambiguity or question of
      interpretation arises, this Agreement and the other documents and instruments
      executed in connection with this Agreement shall be construed as if drafted
      jointly, and no presumption or burden of proof shall arise favoring or
      disfavoring any Party by virtue of the authorship of any provision of this
      Agreement or such other documents and instruments. Any item disclosed on a
      disclosure schedule to this Agreement shall be deemed disclosed for and
      incorporated into all other disclosure schedules to which such item is
      applicable. The term “including” in this Agreement shall mean “including without
      limitation”. All references to immediately available funds or dollar amounts
      contained in this Agreement shall mean United States dollars. The headings
      contained in this Agreement are for reference purposes only and shall not affect
      in any way the meaning or interpretation of this Agreement. References to
“schedules” or “sections” herein shall be deemed to refer to the applicable
      disclosure schedule or section of this Agreement.

     

    5.3. Successors
      and Assigns. 
      This
      Agreement shall inure to the benefit of, and be binding upon and enforceable
      against, the successors and permitted assigns of the respective Parties hereto.
      

     

    5.4. Amendments.
      No
      amendment to or modification of this Agreement shall be effective unless it
      shall be in writing and signed by Amelio, acting on behalf of all of the members
      of the Amelio Group, and by the Company, acting on behalf of all members of
      the
      STF Group.

     

    5.5. Notices.
      All
      notices and other communications given under this Agreement shall be in writing
      and shall be deemed duly given (a) on the date of delivery, if delivered
      personally, (b) on the date of transmission, if sent via facsimile transmission
      to the facsimile number given below, and telephonic or written confirmation
      of
      receipt is obtained promptly after completion of transmission, (c) the Business
      Day after the date of delivery to a reputable and recognized next-day express
      courier service, or (d) three Business Days after (or, in the case of a notice
      or communication sent overseas, ten Business Days after) being mailed by
      registered or certified mail (return receipt requested), postage prepaid, to
      the
      Parties at the following addresses (or at such other address for a party as
      shall be specified by like notice):

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    

    
      	
              If
                to the STF Group, to:

            	
              Solar
                Thin Films, Inc.

            
	 	
              505
                Grove Street

            
	 	
              Haddonfield,
                New Jersey 08033

            
	 	
              Attn:
                Peter Lewis, Chief Executive Officer

            
	 	
              Tel:
                (856) 673-1749

            
	 	
              Fax:
                (609) 434-0602

            
	 	
              Email:
                plewis@solarthinfilms.com

            
	 	 
	
              with
                a required copy to:

            	
              Hodgson
                Russ LLP

            
	 	
              1540
                Broadway

            
	 	
              New
                York, New York 10036

            
	 	
              Attention:
                Stephen A. Weiss, Esq.

            
	 	
              Tel:
                (212) 751-4300

            
	 	
              Facsimile:
                (212) 751-0928

            
	 	
              email:
                sweiss@hodgsonruss.com

            
	 	 
	
              If
                to Amelio Group, to:

            	 
	 	
              Amelio
                Solar, Inc.

            
	 	
              200
                Ludlow Drive, Suite C

            
	 	
              Ewing,
                NJ 08638

            
	 	
              Attention:
                Bruce Bower, CEO

            
	 	
              Tel:
                609-434-0600

            
	 	
              Facsimile:609-434-0602

            
	 	
              email:
                bdbower@yahoo.com

            
	 	 
	
              with
                a required copy to:

            	
              Day
                Pitney LLP

            
	 	
              7
                Times Square Tower

            
	 	
              New
                York, New York 10036

            
	 	
              Attention:
                Sabino (Rod) Rodriguez III

            
	 	
              Tel:
                (212) 297-2454

            
	 	
              Facsimile:
                (718) 764-4356

            
	 	
              email:
                srodriguez@daypitney.com

            

    

    

    Such
      addresses may be changed, from time to time by means of a notice given in the
      manner provided in this Section (provided that no such notice shall be effective
      until it is received by the other Parties hereto).

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    5.6. Consent
      to Jurisdiction.
      Each of
      Parties do hereby irrevocably submits to the exclusive jurisdiction of (a)
      the
      Supreme Court of the State of New York sitting in New York County, and (b)
      the
      United States District Court for the Southern District of New York, for the
      purposes of any suit, action or other proceeding arising out of this Agreement
      and the Collateral Documents or any transaction contemplated hereby or thereby,
      except in each case with respect to any matters related to title or possession
      of real property, and any other matters that are justiciable only under the
      jurisdiction of another court. Each of the Parties irrevocably consent to
      service of process out of such courts in any action or proceeding by the mailing
      of copies thereof by registered or certified mail, postage prepaid, or by
      recognized overnight courier or delivery service, to the Parties at their
      respective addresses set forth herein. Each of the Parties irrevocably waives
      any objection which it may now or hereafter have to the laying of venue of
      any
      of the aforesaid actions or proceedings arising out of or in connection with
      this Agreement brought in the courts referred to above and hereby further
      irrevocably waives and agrees, to the full extent permitted by Applicable Law,
      not to plead or claim in any such court that any such action or proceeding
      brought in any such court has been brought in any inconvenient
      forum.

     

    5.7. Dispute
      Resolution Procedure. 

     

    (a) General.
      The
      parties desire to resolve disputes arising out of this Agreement without
      litigation. Accordingly, the parties agree to use the dispute resolution
      procedures set forth in this Section
      5.7
      (the
“Dispute
      Resolution Procedures”)
      as
      their sole means of adjudication with respect to any controversy or claim
      arising out of or relating to this Agreement or its breach, unless otherwise
      specified herein. 

     

    (b) Dispute
      Notice.
      At the
      written request of any Party (a “Dispute
      Notice”),
      the
      Parties to the dispute will, within seven Business Days of the Dispute Notice,
      appoint knowledgeable, responsible representatives of the Parties to the
      dispute, to meet and negotiate in good faith to resolve any dispute arising
      under this Agreement. The Parties intend that these negotiations be conducted
      by
      business representatives, including at least one senior executive of each Party
      to the dispute. The representatives shall meet and confer, in person, not later
      than such seventh Business Day after the date of the Dispute Notice. The
      location, format, frequency, duration and conclusion of these discussions shall
      be left to the discretion of the representatives; provided that, the duration
      shall not exceed 30 days from the date of the Dispute Notice (an “Action
      Date”)
      unless
      extended by mutual written agreement of the parties setting forth a new Action
      Date. The Dispute Notice and any extension shall specify the Action Date. The
      Dispute Notice shall set forth the nature of the dispute, in reasonable detail.
      Discussion and correspondence among the representatives for purposes of these
      negotiations shall be treated as confidential information developed for purposes
      of settlement, exempt from discovery and production, and shall not be admissible
      in the mediation or arbitration described below. Documents identified in or
      provided with such communications, which are not prepared for purposes of the
      negotiations, are not so exempted and may, if otherwise admissible, be admitted
      in evidence in the arbitration. If the Parties are unable to resolve any
      disputes arising under or relating to this Agreement (each a “Dispute”)
      using
      the process described in this Section
      5.7(b)
      within
      the time period provided, including without limitation disputes regarding a
      breach or default under this Agreement, the Parties shall mediate such dispute
      pursuant to the mediation provisions set forth in Section
      5.7(c).
      

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    (c)
      Mediation.
      Within
      20 days of the Action Date, the Parties shall select a mediator for non-binding
      mediation. If the parties are unable to mutually agree on a mediator, each
      Party
      shall select a mediator and those selected mediators shall intern select the
      single mediator to mediate over the disputes referenced in the Dispute Notice.
      The mediation shall continue for no more than 30 days from the selection of
      the
      mediator, unless the Parties mutually agree to extend the mediation for an
      additional fixed period of time. If the Parties are unable to resolve any
      Disputes using the process described in this Section
      5.7(b)
      within
      the time period provided, including without limitation disputes regarding a
      breach or default under this Agreement, the Parties shall arbitrate such dispute
      pursuant to the arbitration provisions set forth in Section
      5.7(d).
      

     

    (d) Arbitration.
      Any
      Dispute that has not been resolved within the time period provided for in
Section
      5.7(c)
      shall be
      resolved by a single arbitrator in binding arbitration. The Dispute Notice
      shall
      automatically serve as a written notice of a request to submit the Dispute
      for
      arbitration if there has not been a resolution of the Dispute by the Mediation
      Action Date, and the Parties agree to submit the Dispute to a single arbitrator
      who shall be appointed within 30 days after the expiration of the Mediation
      Action Date (the “Submission Period”). During the Submission Period, the Parties
      shall appoint the arbitrator in accordance with the Commercial Arbitration
      Rules
      (then in effect) of the American Arbitration Authority (“AAA”),
      as
      modified below. No punitive damages (or any other amount awarded for the purpose
      of imposing a penalty) will be awarded for a breach of this
      Agreement.

     

    (i) During
      the Submission Period, the Parties may submit a request for discovery to the
      arbitrator, who shall determine whether the scope of the requested discovery
      is
      appropriate or useful for the resolution of the Dispute and order the discovery
      in their discretion; provided that such discovery process shall be concluded
      not
      later than 30 days following the Submission Period (the “Discovery
      Close Date”).
      

     

    (ii) The
      arbitration hearing shall be fixed by the arbitrator to be not sooner than
      20
      days nor later than 45 days after the Discovery Close Date (the “Hearing
      Date”).
      The
      hearing shall be located at a neutral site as mutually agreed by the Parties,
      or
      if the Parties cannot so agree, then the location of the arbitration shall
      be
      held in New York City, New York. The Federal Rules of Evidence shall apply
      to
      the arbitration hearing. The Party bringing a particular claim or asserting
      an
      affirmative defense will have the burden of proof with respect thereto. Each
      Party shall bear the burden of persuasion with respect to its proposal for
      resolution of the matter. The arbitration proceedings and all testimony,
      filings, documents and information relating to or presented during the
      arbitration proceedings shall be deemed to be information subject to the
      confidentiality provisions of this Agreement. The arbitrator shall set he rules
      for document length, response times, and witnesses. The arbitrators will have
      no
      power or authority, pursuant to the rules of the AAA or otherwise, to relieve
      the Parties from their agreement hereunder to arbitrate or otherwise to amend
      or
      disregard any provision of this Agreement, including without limitation the
      provisions of Section
      3.2
      and this
      Section.

     

    (iii) Should
      an
      arbitrator refuse or be unable to proceed with arbitration proceedings as called
      for by this Section, the Arbitrator shall be replaced pursuant to the rules
      of
      the AAA. If an arbitrator is replaced after the arbitration hearing has
      commenced, then a rehearing shall take place in accordance with this Section
      and
      the rules of the AAA. 

     

    (iv) Within
      fifteen (15) days after completion of the arbitration proceedings, the
      Arbitrator will prepare and distribute to the Parties a writing setting forth
      the arbitrator’s reasons for the determination. The findings and conclusions and
      the award, if any, shall be deemed to be confidential information of the
      Parties. Neither Party may disclose such information to any third Party other
      than their professional advisors or as required by law or regulations, except
      in
      connection with an action to enforce the award.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    (v) The
      arbitrator is instructed to schedule promptly all discovery and other procedural
      steps and otherwise to assume case management initiative and control to effect
      an efficient and expeditious resolution of the Dispute. The arbitrators are
      authorized to issue monetary sanctions against either Party if, upon a showing
      of good cause, such Party is unreasonably delaying the proceeding.

     

    (vi) Any
      award
      rendered by the arbitrators will be final, conclusive, and binding upon the
      Parties and any judgment thereon may be entered and enforced in any court of
      competent jurisdiction. 

     

    (vii) The
      non-prevailing Party to an arbitration shall pay its own expenses, the fees
      of
      the arbitrator, the administrative fee of the AAA, and the expenses, including
      without limitation, reasonable attorneys’ fees and costs, and expert and witness
      fees and costs, incurred by the other Party to the arbitration. In the case
      of a
      decision which partially favors each Party, expenses shall be paid as determined
      by the arbitrator. In connection with any judicial proceeding to compel
      arbitration pursuant to this Agreement or to confirm, vacate or enforce any
      award rendered by the arbitrator, the prevailing Party in such a proceeding
      shall be entitled to recover reasonable attorney’s fees and expenses incurred in
      connection with such proceedings, in addition to any other relief to which
      it
      may be entitled. 

     

    (e) Injunctive
      Relief.
      Notwithstanding anything to the contrary, no Party to this Agreement shall
      have
      any obligation to arbitrate claims for injunctive relief, as to which any Party
      shall be entitled to seek and obtain relief exclusively from the state or
      federal courts sitting in New York City, New York, and each Party hereby
      irrevocably submits to the jurisdiction of any such court; provided that, any
      and all claims for damages shall remain subject to arbitration.

     

    5.8. Severability.
      If any
      provision of this Agreement or the application of any such provision to any
      Person or circumstance shall be held invalid, illegal or unenforceable in any
      respect by a court of competent jurisdiction, such invalidity, illegality or
      unenforceability shall not affect any other provision hereof and the Parties
      hereto shall negotiate in good faith to modify this Agreement, so as to effect
      the original intent of the Parties as closely as possible in a mutually
      acceptable manner in order that the transactions contemplated hereby may be
      consummated as originally contemplated.

     

    5.9. Waiver.
      Waiver
      of any term or condition of this Agreement by any Party shall be effective
      if in
      a writing signed by the Party against whom such waiver is asserted. Any such
      waiver shall not be construed as a waiver of any subsequent breach or failure
      of
      the same term or condition, or a waiver of any other term of this Agreement.
      No
      failure or delay by any Party in exercising any right, power or privilege
      hereunder shall operate as a waiver thereof nor shall any single or partial
      exercise thereof preclude any other or further exercise thereof or the exercise
      of any other right, power or privilege.

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    5.10. Counterparts.
      This
      Agreement may be executed in any number of counterparts, all of which shall
      be
      considered one and the same agreement, and shall become effective when one
      or
      more such counterparts have been signed by each of the Parties to this Agreement
      and delivered to the other Parties, it being understood that all Parties need
      not sign the same counterpart.

     

    5.11. Entire
      Agreement.
      This
      Agreement, including the Collateral Documents, other Exhibits and the other
      documents delivered pursuant hereto and thereto, contains the entire agreement
      and understanding between the Parties hereto with respect to the subject matter
      hereof and supersede all prior and contemporaneous agreements, negotiations,
      correspondence, undertakings and understandings, oral or written, relating
      to
      such subject matter.

     

    5.12. Governing
      Law.
      This
      Agreement shall be governed by and construed in accordance with the internal
      laws of the State of New York applicable to agreements made and to be performed
      entirely within the State of New York, without regard to the conflicts of law
      principles of such state.

     

    5.13. Time
      is of the Essence.
      Time is
      of the essence in the performance of this Agreement.

     

    [the
      balance of this page intentionally left blank – signature
      page
      follows]

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF,
      the
      Parties have caused this Agreement to be duly executed as of the date first
      written above.

     

    
      	
              AMELIO
                SOLAR, INC.

            
	 
	
              By:
                

            	
              /s/
                Bruce Bower

            
	
              Name:
                Bruce Bower

            
	
              Title:
                Chief Executive Officer

            
	 
	
              RENEWABLE
                ENERGY SOLUTIONS, INC.

            
	 
	
              By:
                

            	
              /s/
                Zoltan Kiss

            
	
              Name:
                Zoltan Kiss

            
	
              Title:
                Director

            
	 
	
              /s/
                Zoltan Kiss

            
	
              ZOLTAN
                KISS

            
	 
	
              SOLAR
                THIN FILMS, INC.

            
	 
	
              By

            	
              /s/
                Robert M. Rubin

            
	
              Name:
                Robert M. Rubin

            
	
              Title:
                Chairman and CFO

            
	 
	
              KRAFT
                ELEKTRONIKAI ZRT

            
	 
	
              By

            	
              /s/
                Robert M. Rubin

            
	
              Name:
                Robert M. Rubin,

            
	
              Title:
                Chairman

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Exhibit
      I 

    

    Stock
      Purchase Agreement

    

    [separate
      document]

     

    
      
        
        

      

      
        -17-

        
          

        

      

      
        
        

      

    

    Exhibit
      II

    

    Form
      of Amelio Group Release

    

    AMELIO
      GROUP RELEASE

    

    This
      Amelio Group Release (the “Amelio
      Release”)
      is
      entered into as of August __, 2008, by and among AMELIO
      SOLAR, INC.
      (“Amelio”),
      RENEWABLE
      ENERGY SOLUTIONS, INC.,
      (“RESI”),
      ZOLTON
      KISS
      (“Z.
      Kiss”),
      and
      their existing and future direct and indirect Subsidiaries or Affiliates and
      are
      hereinafter sometimes collectively referred to as the “Amelio
      Group”
in
      favor of SOLAR
      THIN FILMS, INC. (“STF”),
      together with its wholly-owned Subsidiaries, KRAFT
      ELEKTRONIKAI ZRT (“Kraft”) and
      SUPERIOR
      VENTURES CORP. (“Superior”)
      and its
      majority-owned Subsidiary, SOLAR
      THIN POWER, INC. (“STP”),
      and
      the Company’s future direct and indirect Subsidiaries or Affiliates and are
      hereinafter sometimes collectively referred to collectively as the “STF
      Group.”
The
      foregoing parties are hereinafter sometimes also referred to collectively as
      the
“Parties”
or
      individually as a “Party”.
      Defined terms used herein but not otherwise defined herein shall have the
      meaning attributed to them in the Master Settlement Agreement (as defined
      below).

    

    RECITALS

    

    WHEREAS,
      the Parties entered into a Master Settlement Agreement, on the same date hereof,
      to resolve all claims and controversies among the Parties; (the “Settlement
      Agreement”);

     

    WHEREAS,
      STF, KRAFT, and AMELIO entered into a Strategic Alliance and Cross License
      Agreement, dated the same date hereof, for the purposes of defining their future
      cooperation and obligations to one another;

     

    WHEREAS,
      the members of the Amelio Group wish to release the members of the STF Group
      from all claims, causes of action, demands, costs, expenses or other
      obligations; 

     

    NOW
      THEREFORE, in consideration, the receipt and sufficiency of which are hereby
      acknowledged, the Amelio Group hereby stipulates and agrees as
      follows:

    

    AGREEMENT

    

    1. Amelio
      Group Release

    

    In
      consideration of the terms and conditions of the Settlement Agreement,
      incorporated herein by reference, and other good and valuable consideration,
      the
      receipt and sufficiency of which are hereby acknowledged, the
      general release(s) by each member of the Amelio Group to each member of the
      STF
      Group pursuant to which, inter
      alia,
      each
      member of the Amelio Group shall jointly and severally irrevocably release
      each
      member of the STF Group, and all of their respective officers, directors and
      stockholders, from all claims, causes of action, demands, costs, expenses or
      other obligations (collectively, “Claims”)
      that
      any one or more members of the Amelio Group may individually or collectively
      have as of the Closing Date against the STF Group and/or their respective
      officers, directors or stockholders, including, without limitation, all Claims
      under the Existing Contracts, and shall release each member of the STF Group
      and
      their respective officers, directors or stockholders from all such Claims;
      provided,
      however, that
      the
      foregoing shall not be deemed to constitute a release with respect to (a) the
      ongoing obligations of the STF Group under the Settlement Agreement, the
      Exhibits thereto, and the Collateral Documents, and (b) certain rights that
      the
      children of Z. Kiss may have following the Closing Date with respect to their
      ownership of shares of Company Common Stock that such Persons, solely in their
      capacities as stockholders, will retain in the Company following the Closing
      Date.

     

    
      
        
        

      

      
        -18-

        
          

        

      

      
        
        

      

    

    2. Confidentiality

     

    It
      is
      understood by the Parties that this Amelio Release is a requirement under the
      Settlement Agreement . None of the Parties shall, directly or indirectly,
      disclose, cause to be disclosed or permit to be disclosed, the existence or
      contents and terms of this Amelio Release, except as necessary to disclose
      to
      the disclosing Party’s auditors, lawyers and agents, or if disclosure is
      required by law.

    

    3. Enforcement

    

    Nothing
      in this Amelio Release shall prevent any Party from commencing an action to
      enforce the terms, conditions and obligations of the Settlement Agreement.
      

    

    4. Joint
      Drafting

     

    This
      Amelio Release reflects the joint drafting efforts of all Parties hereto and
      any
      ambiguities herein shall not be construed against any Party hereto. 

    

    5. Amendments

    

    This
      Amelio Release may not be amended, revoked or modified, in whole or in part,
      except by a writing executed by all of the Parties.

    

    6. Governing
      Law and Jurisdiction

     

    This
      Amelio Release shall be governed by and interpreted under the laws of the State
      of New York, without giving effect to principles of conflicts of law. The
      Parties agree that any dispute or default arising out of and/or relating in
      any
      manner to the terms or provisions of this Amelio Release may be brought in
      any
      court of competent jurisdiction in the State of New York, and by execution
      and
      delivery of this Amelio Release, each party (i) accepts, generally and
      unconditionally, the jurisdiction of such courts and any related appellate
      court, and irrevocably agrees to be bound by any judgment rendered thereby
      in
      connection with this Amelio Release and (ii) irrevocably waives any objection
      it
      may now or hereafter have as to the venue of any such suit, action or proceeding
      brought in such a court or that such court is an inconvenient forum.

     

    
      
        
        

      

      
        -19-

        
          

        

      

      
        
        

      

    

    7. Execution

    

    This
      Amelio Release may be executed in any number of counterparts, each of which
      shall be deemed an original, but all of which together shall constitute one
      and
      the same instrument. 

    

    8. Unenforceability

     

    If
      any
      term, provision and/or obligation of this Amelio Release shall be adjudicated
      by
      the Court to be unenforceable in any situation and/or as to any Party, person
      and/or entity, the remaining terms, conditions and obligations shall remain
      enforceable to the maximum extent in all other situations and as to all other
      Parties, persons and/or entitles. 

     

    9. Authorization

     

    The
      Parties hereto represent and acknowledge that the persons signing this Amelio
      Release are fully authorized to enter into this Amelio Release on their
      behalf.

     

    [Remainder
      of page intentionally left blank]

    
      
        
        

      

      
        -20-

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF, the Parties hereto have caused this Amelio Release to be
      executed as of the date indicated above. 

     

    
      	 	
              AMELIO
                SOLAR, INC. 

            
	 	 	 
	 	
              By:

            	   

	 	 
	 	
              Name: 

              Title:  

            
	 	 
	 	
              RENEWABLE
                ENERGY SOLUTIONS, INC. 

            
	 	 
	 	
              By:

            	   

	 	 	 
	 	
              Name: 

              Title: 

            
	 	 
	 	 	  

	 	
               

            	
              ZOLTAN
                KISS  

            

    

     

    
      
        
        

      

      
        -21-

        
          

        

      

      
        
        

      

    

    Exhibit
      III

    

    STF
      Group Release

     

    STF
      GROUP RELEASE

    

    This
      STF
      Group Release (the “STF
      Release”)
      is
      entered into as of August __, 2008, by and among SOLAR
      THIN FILMS, INC. (“STF”),
      together with its wholly-owned Subsidiaries, KRAFT
      ELEKTRONIKAI ZRT (“Kraft”) and
      SUPERIOR
      VENTURES CORP. (“Superior”)
      and its
      majority-owned Subsidiary, SOLAR
      THIN POWER, INC. (“STP”),
      and
      the Company’s future direct and indirect Subsidiaries or Affiliates and are
      hereinafter sometimes collectively referred to collectively as the “STF
      Group”
in
      favor of AMELIO
      SOLAR, INC.
      (“Amelio”),
      RENEWABLE
      ENERGY SOLUTIONS, INC.,
      (“RESI”),
      ZOLTON
      KISS
      (“Z.
      Kiss”),
      and
      their existing and future direct and indirect Subsidiaries or Affiliates and
      are
      hereinafter sometimes collectively referred to as the “Amelio
      Group”.
      The
      foregoing parties are hereinafter sometimes also referred to collectively as
      the
“Parties”
or
      individually as a “Party”.
      Defined terms used herein but not otherwise defined herein shall have the
      meaning attributed to them in the Master Settlement Agreement (as defined
      below).

    

    RECITALS

    

    WHEREAS,
      the Parties entered into a Master Settlement Agreement, on the same date hereof,
      to resolve all claims and controversies among the Parties; (the “Settlement
      Agreement”);

     

    WHEREAS,
      STF, KRAFT, and AMELIO entered into a Strategic Alliance and Cross License
      Agreement, dated the same date hereof, for the purposes of defining their future
      cooperation and obligations to one another;

     

    WHEREAS,
      the members of the STF Group wish to release the members of the Amelio Group
      from all claims, causes of action, demands, costs, expenses or other
      obligations; 

     

    NOW
      THEREFORE, in consideration, the receipt and sufficiency of which are hereby
      acknowledged, the STF Group hereby stipulates and agrees as
      follows:

    

    AGREEMENT

    

    1. STF
      Group Release

    

    In
      consideration of the terms and conditions of the Settlement Agreement,
      incorporated herein by reference, and other good and valuable consideration,
      the
      receipt and sufficiency of which are hereby acknowledged, the
      general release(s) by each member of the STF Group to each member of the Amelio
      Group pursuant to which, inter
      alia,
      each
      member of the STF Group shall jointly and severally irrevocably release each
      member of the Amelio Group and all of their respective officers, directors
      and
      stockholders, from all claims, causes of action, demands, costs, expenses or
      other obligations (collectively, “Claims”)
      that
      any one or more members of the STF Group may individually or collectively have
      as of the Closing Date against the Amelio Group and/or their respective
      officers, directors or stockholders, including, without limitation, all Claims
      under the Existing Contracts, and shall release each member of the Amelio Group
      and their respective officers, directors or stockholders from all such Claims;
      provided,
      however, that
      the
      foregoing shall not be deemed to constitute a release with respect to the
      ongoing obligations of the Amelio Group under the Settlement Agreement, the
      Exhibits thereto, and the Collateral Documents.

     

    
      
        
        

      

      
        -22-

        
          

        

      

      
        
        

      

    

    2. Confidentiality

     

    It
      is
      understood by the Parties that this STF Release is a requirement under the
      Settlement Agreement . None of the Parties shall, directly or indirectly,
      disclose, cause to be disclosed or permit to be disclosed, the existence or
      contents and terms of this STF Release, except as necessary to disclose to
      the
      disclosing Party’s auditors, lawyers and agents, or if disclosure is required by
      law.

    

    3. Enforcement

    

    Nothing
      in this STF Release shall prevent any Party from commencing an action to enforce
      the terms, conditions and obligations of the Settlement Agreement. 

    

    4. Joint
      Drafting

     

    This
      STF
      Release reflects the joint drafting efforts of all Parties hereto and any
      ambiguities herein shall not be construed against any Party hereto. 

    

    5. Amendments

    

    This
      STF
      Release may not be amended, revoked or modified, in whole or in part, except
      by
      a writing executed by all of the Parties.

    

    6. Governing
      Law and Jurisdiction

     

    This
      STF
      Release shall be governed by and interpreted under the laws of the State of
      New
      York, without giving effect to principles of conflicts of law. The Parties
      agree
      that any dispute or default arising out of and/or relating in any manner to
      the
      terms or provisions of this STF Release may be brought in any court of competent
      jurisdiction in the State of New York, and by execution and delivery of this
      STF
      Release, each party (i) accepts, generally and unconditionally, the jurisdiction
      of such courts and any related appellate court, and irrevocably agrees to be
      bound by any judgment rendered thereby in connection with this STF Release
      and
      (ii) irrevocably waives any objection it may now or hereafter have as to the
      venue of any such suit, action or proceeding brought in such a court or that
      such court is an inconvenient forum. 

     

    7. Execution

    

    This
      STF
      Release may be executed in any number of counterparts, each of which shall
      be
      deemed an original, but all of which together shall constitute one and the
      same
      instrument. 

     

    
      
        
        

      

      
        -23-

        
          

        

      

      
        
        

      

    

    8. Unenforceability

     

    If
      any
      term, provision and/or obligation of this STF Release shall be adjudicated
      by
      the Court to be unenforceable in any situation and/or as to any Party, person
      and/or entity, the remaining terms, conditions and obligations shall remain
      enforceable to the maximum extent in all other situations and as to all other
      Parties, persons and/or entitles. 

     

    9. Authorization

     

    The
      Parties hereto represent and acknowledge that the persons signing this STF
      Release are fully authorized to enter into this STF Release on their
      behalf.

     

    [Remainder
      of page intentionally left blank]

     

    
      
        
        

      

      
        -24-

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the Parties hereto have caused this Amelio Release to be
      executed as of the date indicated above. 

     

    
      	 	
              SOLAR
                THIN FILMS, INC.

            
	 	 	 
	 	
              By

            	 

	 	 	 
	 	
              Name:
                Robert M. Rubin 

              Title: Chairman
                and CFO  

            
	 	 
	 	
              KRAFT
                ELEKTRONIKAI ZRT 

            
	 	 	 
	 	
              By

            	 

	 	 	 
	 	
              Name:
                Robert M. Rubin, 

              Title: Chairman
                

            
	 	 
	 	
              SUPERIOR
                VENTURES CORP. 

            
	 	 	 
	 	
              By

            	 

	 	 	 
	 	
              Name:
                Robert M. Rubin, 

              Title: Chairman
                

               

            
	 	
              SOLAR
                THIN POWER, INC. 

            
	 	 	 
	 	
              By

            	 

	 	 	 
	
               

            	
              Name:
                Robert M. Rubin, 

              Title: Chairman

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Exhibit
      IV

     

    Strategic
      Alliance and Cross License AgreementSTRATEGIC
      ALLIANCE AND CROSS LICENSE AGREEMENT

     

    by
      and among

     

    SOLAR
      THIN FILMS, INC.

     

    KRAFT
      ELEKTRONIKAI ZRT

     

    and
      

     

    AMELIO
      SOLAR, INC. 

     

    dated
      as of August 12, 2008

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    STRATEGIC
      ALLIANCE AND CROSS LICENSE AGREEMENT

     

    THIS
      STRATEGIC ALLIANCE AND CROSS LICENSE AGREEMENT,
      dated
      as of August 12, 2008 (the “Agreement”),
      is
      made and entered into by and among SOLAR
      THIN FILMS, INC., a
      Delaware corporation (the “Company”);
      KRAFT
      ELEKTRONIKAI ZRT,
      a
      corporation organized and existing under the laws of Hungary (“Kraft”);
      and
AMELIO
      SOLAR, INC.,
      a
      Delaware corporation (“Amelio”).
      The
      Company, Kraft, and Amelio are hereinafter sometimes individually referred
      to as
      a “Party”
and
      collectively as the “Parties.”

     

    I
      N T R O D U C T I O N

     

    This
      Agreement is made and entered into by the Parties with reference to the
      following:

     

    A. The
      Amelio Group has advised the STF Group that RESI and Z. Kiss has, or will have
      prior to the Closing Date (as hereinafter defined), transferred to Amelio all
      of
      their rights in the design, development, manufacture and sale of “PV Equipment,”
“PV Modules” and all “PV Technologies,” including, without limitation, all “a-Si
      Technology” and “CIGS Technology” (as those terms are hereinafter
      defined).

     

    B. The
      Parties hereto desire, pursuant to this Agreement, to establish an ongoing
      working relationship between the STF Group and the Amelio Group with respect
      to
      the future manufacture, sale and distribution of PV Equipment, PV Modules,
      and
“Turnkey PV Module Manufacturing Facilities”(as that term is hereinafter
      defined) using all PV Technologies developed or acquired by the STF Group or
      the
      Amelio Group.

     

    NOW,
      THEREFORE,
      in
      consideration of the mutual covenants and agreements hereinafter contained,
      the
      Parties hereto intending to be bound thereby, it is hereby agreed as
      follows:

     

    ARTICLE
      I

     

    DEFINITIONS

     

    In
      addition to the other terms defined elsewhere in this Agreement, the following
      capitalized terms shall have the meanings defined below.

     

    Affiliate.
      The
      term “Affiliate” shall mean, with respect to any Person, any other Person
      controlling, controlled by or under common control with such Person. The term
      “control” as used in the preceding sentence means the possession, directly or
      indirectly, of the power to direct or cause the direction of the management
      or
      policies of such Person, whether through the ownership of voting securities,
      by
      agreement or otherwise.

     

    Amelio CIGS
      PV Products.
      The
      term “Amelio CIGS PV Products” shall have the meaning set forth in Section
      3.1
      of this
      Agreement.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Amelio
      Group. The
      term
“Amelio Group” shall mean and include Amelio, RESI and Z. Kiss, and any direct
      and indirect Subsidiaries or Affiliates of such Persons, whether now existing
      or
      hereafter formed or acquired.

     

    a-Si.
      The
      term “a-Si” shall mean amorphous silicon.

     

    a-Si
      Equipment.
      The term
“a-Si Equipment” shall mean PV Equipment embodying the a-Si Technology that is
      utilized to deposit the active a-Si layer as a coating on PV
      Modules.

     

    a-Si
      Technology.
      The term
“a-Si Technology” shall mean all Intellectual Property and Improvements now or
      hereinafter developed or obtained by any of the Amelio Group or STF Group with
      respect to thin-film a-Si used as a coating or other material to deposit the
      active layer on PV Modules.

     

    Business
      Day.
      The term
“Business Day” shall mean any day on which the banks in New York City, New York,
      are open for business (excluding Saturday, Sunday and federal
      holidays).

     

    CIGS.
      The term
“CIGS” shall mean copper indium gallium diselenide.

     

    CIGS
      Equipment.
      The term
“CIGS Equipment” shall mean PV Equipment embodying the CIGS Technology that is
      utilized to deposit the active CIGS layer as a coating on PV
      Modules.

     

    CIGS
      Technology. The
      term
“CIGS Technology” shall mean all Intellectual Property and Improvements now or
      hereinafter developed or obtained by any of the Amelio Group or STF Group with
      respect to the use of CIGS as a coating or other material to deposit the active
      layer on PV Modules.

     

    Claim
      the term
“Claim” shall mean any claim, suit, action, cause of action, proceeding,
      investigation, dispute, demand, order, directive, obligation, loss, injury,
      liability, damage, deficiency, assessment, fine, penalty, forfeiture, judgment,
      lien, diminution of value, notice of violation or non-compliance, and all costs
      and expenses associated therewith, including, but not limited to, reasonable
      attorneys’ fees and expenses incurred to enforce this Agreement, to defend
      against any of the aforementioned claims, and to settle any of the
      aforementioned claims.

     

    Closing.
      The term
“Closing” shall mean the date of delivery of this Agreement and the consummation
      of the transactions contemplated by the Settlement Agreement and the Stock
      Purchase Agreement.

     

    Closing
      Date.
      The term
“Closing Date” shall mean the date of Closing of the transactions contemplated
      by this Agreement, the Settlement Agreement and the Stock Purchase Agreement;
      provided, that without the prior written consent of the Amelio Group, the
      Closing Date shall not occur later than the Outside Closing Date.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    Collateral
      Manufacturing Equipment.
      The term
“Collateral Manufacturing Equipment” shall mean the collective reference to
      carts, tables and the other items of PV Equipment listed or described on
Schedule
      1
      annexed
      hereto and made a part hereof.

     

    Commencement
      Date.
      The term
“Commencement Date” shall have the meaning set forth in Section
      3.1(d)(i)
      of this
      Agreement.

     

    Core
      a-Si Equipment.
      The term
“Core a-Si Equipment” shall mean the equipment listed or described in
Schedule
      2
      annexed
      hereto and made a part hereof.

     

    Core
      CIGS Equipment.
      The term
“Core CIGS Equipment” shall mean the equipment listed or described in
Schedule
      3
      annexed
      hereto and made a part hereof.

     

    Existing
      RESI Agreements.
      The term
“Existing RESI Agreements” shall mean the collective reference to the R&D
      Contract and the Marketing and Turn-On Contract as defined and referred to
      in
      Paragraph A of the Settlement Agreement.

     

    Improvements.
      The term
“Improvements” shall mean any modification of or improvement to an invention
      described in any patent or patent application that, unlicensed, would infringe
      on one or more claims of any such patent or patent application, and any
      inventions, discoveries, or innovations, whether patentable or not, relating
      to
      or arising out of any existing patents, patent applications or
      inventions.

     

    Intellectual
      Property.
      The term
“Intellectual Property” shall mean and include all: (i) patents and patent
      applications (together with all reissues, re-examinations, renewals, extensions
      (including governmental equivalents thereto), substitutions, provisionals,
      additions, continuations, continuations-in-part, divisionals, supplementary
      protection certificates, Improvements and enhancements of all of the foregoing,
      and all trade secrets, trademarks, copyrights, Software (including STF
      Software); (ii) all inventions (whether patentable or not), invention
      disclosures, trade secrets, proprietary information, know how, technology,
      technical data, drawings, blueprints, and all documentation relating to any
      of
      the foregoing; (iii) all Improvements; (iv) all copyrights, copyright
      registrations and applications therefore, and all other rights corresponding
      thereto throughout the world; (v) all trade names, logos, common law trademarks
      and service marks, trademark and service mark registrations and applications
      therefore throughout the world; (vi) all databases and data collections and
      all
      rights therein throughout the world; (vii) all moral rights of authors and
      inventors, however denominated, throughout the world; (viii) all domain names
      drawings, blueprints, intellectual property and related know-how; (ix) all
      inventions, drawing, designs, descriptions, software and other materials
      relating to the Selenization Equipment; and (x) the turn-on function (including
      know-how documentation, training of personnel, organization of effectuating
      of
      performance testing) for PV Module Facilities.

     

    Limited
      STF Group License.
      The
      term “Limited STF Group License” shall have the meaning set forth on
Section
      2.2 (b)
      of this
      Agreement.

     

    Person .
      The
      term “Person” shall mean any individual, partnership, joint venture, firm,
      corporation, association, limited liability company, trust or other enterprise
      or any governmental or political subdivision or any agency, department or
      instrumentality thereof.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    PV.
      The term
“PV” shall mean photovoltaic.

     

    PV
      Equipment.
      The term
“PV Equipment” shall mean a-Si Equipment, CIGS Equipment and all other items of
      machinery, equipment, parts, components and Software deploying PV Technologies
      that are used or useful to manufacture and produce equipment to enable an owner
      or operator of such equipment to manufacture or produce PV Modules.

     

    PV
      Modules.
      The
      term “PV Modules” shall mean PV cells or modules, whether based on a-Si
      Technology, CIGS Technology or other PV Technologies.

     

    PV
      Technologies.
      The
      term “PV Technologies” shall mean the collective reference to (i) a-Si
      Technology, (ii) CIGS Technology, (iii) microcrystalline a-Si Technology, or
      (iv) any other development, improvements, additions or technologies now or
      hereafter developed that are used as a coating or other material to deposit
      the
      active layer on PV Modules or in PV Equipment.

     

    RESI. 
      The term
“RESI” shall mean Renewable Energy Solutions, Inc., a Delaware
      corporation.

     

    Settlement
      Agreement. The
      term
“Settlement Agreement” shall mean the Master Settlement Agreement, dated August
      __, 2008, among the Company, Kraft, Z. Kiss, Amelio and RESI.

     

    Software.
      The term
“Software” shall mean and include all computer programs, source codes, object
      codes and other related items used in computers to power or monitor PV
      Equipment.

     

    STF
      Group Customers.
      The term
“STF Group Customers” shall have the meaning set forth in Section
      3.1(b)
      of this
      Agreement.

     

    STF
      Selenization Equipment.
      The term
“STF Selenization Equipment” shall mean those specific items of equipment,
      components and parts related to CIGS Technology that are listed or described
      on
Schedule
      4
      annexed
      hereto and made a part hereof, which have heretofore been designed by RESI
      under
      certain of the Existing RESI Agreements for the benefit of the Company, and
      pursuant to which development fees have been paid by the Company to
      RESI.

     

    STF
      Selenization Equipment License.
      The
      term“STF
      Selenization Equipment License” shall have the meaning set forth in Section
      2.1(b)
      of this
      Agreement.

     

    STF
      Software.
      The term
“STF Software” shall mean and include all Software related solely to control
      systems for a-Si deposition systems and for sputtering chambers. 

     

    STF
      Group. The
      term
“STF Group” shall mean and include the Company, together with its wholly-owned
      Subsidiaries, Kraft and Superior Ventures Corp. and its majority-owned
      Subsidiary, Solar Thin Power, Inc., and any future direct and indirect
      Subsidiaries or Affiliates of the Company.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    Turnkey
      PV Module Manufacturing Facilities.
      The term
“Turnkey PV Module Manufacturing Facilities” shall mean the collective reference
      to all PV Equipment and related components and software that are installed
      in
      any facility owned and operated by any Person to enable such Person to produce
      PV Modules in all PV Technologies.

     

    Sale
      of Control. The
      term
“Sale of Control” shall mean, as to any Person in question, the sale of all or
      substantially all of the securities or assets and business of such Person,
      whether by stock sale, asset sale, merger or consolidation) to any other Person
      who is not an Affiliate of the Person in question.

     

    Subsidiary.
      The term
“Subsidiary” shall mean any Person of which a majority of the outstanding voting
      securities or other voting equity interests are owned, directly or indirectly,
      by any other Person.

     

    Z.
      Kiss. The
      term
“Z. Kiss” shall mean Zoltan Kiss, an individual.

     

    ARTICLE
      II

     

    SELENIZATION
      EQUIPMENT AND AMELIO CIGS TECHNOLOGY LICENSES

     

    2.1. Selenization
      Equipment.

     

    (a) Ownership.
      On the
      Closing Date, the Amelio Group shall deliver to the Company the most recent
      copies and versions of all drawings, blueprints and other tangible Intellectual
      Property relating to the STF Selenization Equipment. As of the Closing Date,
      Amelio Group acknowledges and agrees all right, title and interest in and to
      the
      STF Selenization Equipment, including, without limitation, any Intellectual
      Property rights therein, shall remain the sole and exclusive property of the
      Company, and, to the extent not previously conveyed, the Amelio Group hereby
      assigns and conveys to the Company all of the Amelio Group’s right, title and
      interest in and to in and to the STF Selenization Equipment, including, without
      limitation, any Intellectual Property rights therein. The STF Group acknowledges
      and agrees, under this Section 2.1(a), Amelio Group is not assigning nor
      conveying any other Amelio Intellectual Property other than the STF Selenization
      Equipment.

     

    (b) License.
      Notwithstanding the foregoing, the Parties hereto acknowledge and agree that
      the
      Intellectual Property relating to the STF Selenization Equipment may constitute
      a portion of, enable, permit or otherwise be useful to the Amelio’s efforts to
      develop the Amelio CIGS Technology (defined below in Section
      2.2(a)).
      Accordingly, as of the Closing Date, the STF Group grants to the Amelio Group
      a
      perpetual, irrevocable, paid-up, royalty-free, worldwide, non-exclusive,
      assignable, transferable, sub-licensable right and license under the Company’s
      Intellectual Property rights in the STF Selenization Equipment to make, use,
      offer for sale, sell or import the STF Selenization Equipment (the “STF
      Selenization Equipment License”).
      

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    2.2. Amelio
      CIGS Technology.

     

    (a) Ownership.
      The
      Parties hereto do hereby acknowledge and agree that the Amelio Group has and
      shall continue to engage in research and development efforts to design and
      develop Amelio CIGS Technology, as defined below. Accordingly, the Parties
      hereto do hereby covenant and agree that all right, title and interest in and
      to
      (i) all CIGS Technology that has been or will be designed, developed, acquired
      or licensed by the Amelio Group and all Improvements thereto, including any
      Intellectual Property rights therein, and (ii) except to the extent that such
      products are sold to and paid for by third Persons (in which case such third
      Person will acquire a use license in a form customary in such transactions),
      or
      as otherwise expressly provided under this Agreement, all PV Equipment, PV
      Modules and PV Technologies derived from or to be derived from such CIGS
      Technology, and any Intellectual Property rights therein, (collectively,
“Amelio
      CIGS Technology”)
      shall
      remain the sole and exclusive property of the Amelio Group.

     

    (b) License.
      In
      order to facilitate and implement the rights and obligations of the STF Group
      set forth in Articles III and IV of this Agreement and for so long as the STF
      Group shall be marketing and distributing PV Equipment, PV Modules and Turnkey
      PV Module Manufacturing Facilities using Amelio CIGS Technology and
      manufacturing PV Equipment and Turnkey PV Module Manufacturing Facilities using
      Amelio CIGS Technology, as contemplated by such Articles III and IV below,
      as of
      the Closing Date, the Amelio Group grants to the STF Group a limited, worldwide,
      non-exclusive, irrevocable paid up royalty fee right and license under the
      Amelio Group’s Intellectual Property rights in the Amelio CIGS Technology to
      make for the Amelio Group and use the Amelio CIGS Technology for the sole and
      limited purpose of exercising STF Group’s rights and meeting STF Group’s
      obligations under Articles III and IV of this Agreement (the “Limited
      STF Group License”).
      The
      foregoing Limited STF Group License shall not be assignable or transferable
      and
      may not be sub-licensed by the STF Group, except: (i) as needed to allow STF
      Group to exercise its rights and meet its obligations under Articles III and
      IV
      of this Agreement, or (ii) to any successor-in-interest to the STF Group as
      a
      result of a Sale of Control; provided,
      that:
      (A)
      such successor-in-interest agrees to be bound by the terms of this Agreement
      and
      all other Collateral Documents, as applicable, and executes a writing indicating
      such intention to be so bound, or (B) if such successor-in-interest refuses
      to
      be bound to the terms of this Agreement and any applicable Collateral Documents,
      than Amelio’s written consent, not to be unreasonably withheld, will be required
      prior to any attempted Sale of Control.

     

    ARTICLE
      III

     

    MARKETING
      AND PURCHASE OF CIGS PV PRODUCTS

     

    3.1. Marketing
      and Distribution of CIGS PV Products.

     

    Effective
      as of the Closing Date, the Amelio Group does hereby grant unto the STF Group
      the non-exclusive right for a period of seven (7) years following the
“Commencement
      Date”
(as
      hereinafter defined), to market, distribute and sell throughout the world,
      on
      behalf of the Amelio Group, items of CIGS Equipment, PV Modules and Turnkey
      PV
      Module Manufacturing Facilities utilizing Amelio CIGS Technology (collectively,
      the “Amelio
      CIGS PV Products”).
      In
      such connection, the Parties hereto do hereby agree as follows:

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    (a) All
      of
      the terms and conditions of any contracts entered into by the STF Group with
      any
      Person electing to purchase CIGS PV Products shall be approved in writing in
      advance by Amelio, which approval shall not be unreasonably withheld or delayed,
      unless such contract shall be adverse to Amelio’s then commercial interests.
      Notwithstanding the foregoing, the Parties agree to develop a set of economic
      terms and forms of agreement that shall be deemed “pre-approved” by Amelio and
      which may be used by the STF Group in connection herewith. Any proposed changes
      to such pre-approved terms and conditions shall be approved in writing by Amelio
      in its discretion.

     

    (b) The
      Amelio Group shall be the general contractor and vender of record for delivery
      of the Amelio CIGS PV Products, and the STF Group shall serve as sole and
      exclusive subcontractor to manufacture, deliver and sell all Amelio CIGS PV
      Products to all customers or purchasers that are directly or indirectly sourced
      by or referred to the Amelio Group by the STF Group (the “STF
      Group Customers”).
      In
      such connection, the Amelio Group shall: 

     

    (i) contract
      directly, as general contractor, with the customer or purchase to sell and
      install Amelio CIGS PV Products, and 

     

    (ii) in
      addition to payment of the Commissions (defined below in Section 3.1(d)),
      purchase from the STF Group the equipment specified on Schedule
      5
      annexed
      hereto (“STF
      Group Equipment”).

     

    (c) The
      customer or purchaser prices for all Amelio CIGS PV Products marketed by the
      STF
      Group for the Amelio Group shall be based on the then prevailing list prices
      in
      effect as published by the Amelio Group; provided,
      that,
      the
      Parties recognize that concessions may be made during customer negotiations
      and
      the Parties agree to review these proposed concessions in good faith on a
      case-by-case basis for all Amelio CIGS PV Products sales sourced or referred
      to
      Amelio directly or indirectly by the STF Group. 

     

    (d) To
      the
      extent that the STF Group provides any STF Group Customers to the Amelio Group,
      the STF Group shall be entitled to receive the following sales commissions
      (the
“Commissions”),
      which
      Commissions shall be in addition to and not in lieu of any payments to which
      the
      STF Group shall be entitled to receive as subcontractor of PV Equipment and
      Turnkey PV Module Manufacturing Facilities utilizing CIGS Technology and any
      Intellectual Property or Improvements, pursuant to the provisions of Article
      IV
      of this Agreement:

     

    (i) For
      the
      first twelve (12) months (the “First
      Anniversary Year”),
      commencing at such time as the Amelio Group shall complete its research and
      development efforts with respect to CIGS Technology that is capable delivering
      any or all of the CIGS PV Products (the “Commencement
      Date”),
      a
      Commission equal to seven and one-half percent (7.5%) of the total purchase
      price of any such CIGS PV Products;

     

    (ii) For
      the
      twelve (12) months immediately following the First Anniversary Year (the
“Second
      Anniversary Year”),
      a
      Commission equal to seven percent (7.0%) of the total purchase price of any
      such
      CIGS PV Products;

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    (iii) For
      the
      twelve (12) months immediately following the Second Anniversary Year (the
“Third
      Anniversary Year”),
      a
      Commission equal to six and one-half percent (6.5%) of the total purchase price
      of any such CIGS PV Products; 

     

    (iv) For
      the
      twelve (12) months immediately following the Third Anniversary Year (the
“Fourth
      Anniversary Year”),
      a
      Commission equal to six percent (6.0%) of the total purchase price of any such
      CIGS PV Products; 

     

    (v) For
      the
      twelve (12) months immediately following the Fourth Anniversary Year (the
“Fifth
      Anniversary Year”),
      a
      Commission equal to five and one-half percent (5.5%) of the total purchase
      price
      of any such CIGS PV Products; and

     

    (vi) For
      the
      twelve (12) months immediately following the Fifth Anniversary Year (the
“Sixth
      Anniversary Year”)
      and
      for each of the remaining twelve (12) months thereafter, until the expiration
      of
      seven (7) years from the Commencement Date, a Commission equal to five percent
      (5.0%) of the total purchase price of any such CIGS PV Products.

     

    3.2. Production
      Capacity.
      Effective as of the Commencement Date and for the First Anniversary Year, the
      Amelio Group shall make available as necessary to fulfill obligations to STF
      Group Customers not less than thirty-five percent (35%) of its total annual
      production capacity (the “Dedicated
      Minimum Annual Production”)
      to the
      manufacture, delivery and installation of CIGS PV Products that are directly
      or
      indirectly sourced by the STF Group. In order to enable the Amelio Group to
      expand its own marketing and distribution efforts independent of the STF Group,
      the Parties hereto agree that such Minimum Annual Production shall be reduced
      by
      two and-one half percent (2.5%) per Anniversary Year; provided,
      that,
      without
      the prior written consent of STF, in no event shall such Dedicated Minimum
      Annual Production be reduced to less than twenty percent (20%). To the extent
      that such capacity is not sufficient to meet the requirements of STF Group
      Customers, the Parties shall meet and confer in good faith to discuss means
      to
      alleviate such capacity constraints. The Parties agree that production capacity
      to develop Amelio’s own manufacturing facilities shall be excluded from the
      foregoing limits.

     

    3.3. Purchases
      from STF Customers.
      In the
      event and to the extent that STF shall directly or indirectly source customers
      or purchasers for CIGS PV Products, it shall have the right to (a) negotiate
      and
      acquire equity interests in such STF Group Customers, and (b) purchase from
      such
      STF Group Customers PV Modules using CIGS Technology for resale. In such
      connection, the Amelio Group shall have the right to participate with the STF
      Group in such purchases; provided that the STF Group shall retain the exclusive
      right to not less than fifty percent (50%) of any such equity or PV Module
      purchases.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    3.4. Purchased
      CIGS Facilities.
      

     

    (a) For
      a
      period of ten (10) years from the Commencement Date, the STF Group shall have
      the right (but not the obligation) to purchase from the Amelio Group for itself
      or for any Affiliate of the STF Group (i) one Turnkey PV Module Manufacturing
      Facilities utilizing CIGS Technology and any Intellectual Property or
      Improvements relating thereto to be located in North America, (ii) one Turnkey
      PV Module Manufacturing Facilities utilizing CIGS Technology and any
      Intellectual Property or Improvements relating thereto to be located in Europe,
      and (iii) one Turnkey PV Module Manufacturing Facilities utilizing CIGS
      Technology and any Intellectual Property or Improvements relating thereto to
      be
      located in Asia (collectively, the “Purchased
      CIGS Facilities”);
      in
      each case, upon terms and conditions that are terms comparable to the best
      terms
      then being offered by the Amelio Group to third Persons.  In addition, if
      the STF Group shall have purchased one or more Purchased CIGS Facilities within
      seven (7) years of the Commencement Date, the STF Group shall have the right,
      exercisable at any time within ten (10) years from the Commencement Date, to
      purchase from the Amelio Group additional CIGS PV Products to expand such
      Purchased CIGS Facilities.

     

    (b) Amelio
      shall have the right, but not the obligation, to participate in up to
      twenty-five percent (25%) of the equity of any one or more of the Purchased
      Facilities on the same terms as STF.  Amelio shall also have the right to
      purchase or otherwise participate in up to twenty-five percent (25%) production
      output from any one or more of the Purchased CIGS Facilities on the same terms
      and conditions as STF.

     

    (c) The
      Purchase Price for any Purchased CIGS Facilities shall include a discount to
      give effect to the Commission that the STF Group would otherwise receive if
      the
      sale were to a STF Group Customer.

     

    (d) This
      provisions of this Section
      3.4
      is
      subject to the capacity restrictions of Section
      3.2
      hereof.

     

    ARTICLE
      IV

     

    PREFERRED
      VENDOR RELATIONSHIPS

     

    4.1 Core
      CIGS Equipment.

     

    (a) For
      a
      period of seven (7) years from the Commencement Date, the Amelio Group shall
      purchase from the STF Group one hundred percent (100%) of the Amelio Group’s
      total requirements for all Core CIGS Equipment that is to be sold by the Amelio
      Group to any one or more STF Group Customers.

     

    (b) With
      respect to Core CIGS Equipment that is not
      to be
      sold by the Amelio Group to any one or more STF Group Customers: 

     

    (i) for
      a
      period of eighteen (18) months from the Commencement Date, the Amelio Group
      shall purchase from the STF Group thirty five percent (35%) of the Amelio
      Group’s total requirements for all Core CIGS Equipment; and

     

    (ii) for
      the
      subsequent thirty (30) months, the Amelio Group shall purchase from the STF
      Group twenty-five percent (25%) of the Amelio Group’s total requirements for all
      Core CIGS Equipment.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    4.2 Core
      a-Si Equipment.
      For a
      period of eighteen (18) months from the Commencement Date, the STF Group shall
      be a preferred vendor (but not an exclusive supplier) of Core a-Si Equipment
      (including Turnkey PV Module Manufacturing Facilities utilizing a-Si Equipment);
      provided,
      however,
      that
      the Amelio Group shall provide to the STF Group purchase orders for not less
      than fifty percent (50%) of the Amelio Group’s total requirements for its Core
      a-Si Equipment. 

     

    4.3 Limitation
      on Percentage Purchase Requirements. The
      percentage of the Amelio Group’s purchase requirements set forth in Section
      4.1(b)
      and
Section
      4.2
      above
      shall continue until such time as the STF Group shall have been awarded purchase
      orders from the Amelio Group for such Core a-Si Equipment and/or Core CIGS
      Equipment that is not sold by Amelio to STF customers aggregating Fifty Million
      Dollars ($50,000,000).

     

    4.4 Collateral
      Manufacturing Equipment.
      The
      Amelio Group shall be free to purchase Collateral Manufacturing Equipment from
      any source(s), including, without limitation, the STF Group, at such prices
      as
      the Amelio Group and such vendor(s) may negotiate from time to
      time.

     

    4.5 Profit
      Margin to STF.
      

     

    (a) CIGS
      Equipment.
      Under
      the terms of its preferred vendor relationship, the STF Group shall be entitled
      to charge, as subcontractor to the Amelio Group (who shall serve as general
      contractor) for the production and sale of all Core CIGS Equipment (including
      Turnkey PV Module Manufacturing Facilities utilizing CIGS Equipment), such
      prices for Core CIGS Equipment as shall provide to the STF Group a “Profit
      Margin” of forty percent (40%) on the first order of Core CIGS Equipment, and
      thirty-five percent (35%) on all subsequent orders. As used in this Section
      4.4(a),
      the
      term “Profit
      Margin”
shall
      mean:

     

    (i) for
      the
      first order of such CIG Equipment, an amount, payable in U.S. Dollars, as shall
      be equal to 1.66666 times the sum of the actual costs incurred by the STF Group
      for (A) labor, (B) materials (including parts, components and other materials
      supplied by subcontractors), and (C) indirect manufacturing costs (which
      indirect manufacturing costs shall not exceed 35% of labor costs) in connection
      with the manufacture and delivery of such CIGS Equipment to the Amelio Group
      or
      its customers, and

     

    (ii) for
      all
      subsequent orders of such CIGS Equipment following the First Anniversary Year,
      an amount, payable in U.S. Dollars, as shall be equal to 1.53846 times the
      sum
      of the actual costs incurred by the STF Group for (A) labor, (B) materials
      (including parts, components and other materials supplied by subcontractors),
      and (C) indirect manufacturing costs (which indirect manufacturing costs shall
      not exceed 35% of labor costs) in connection with the manufacture and delivery
      of such CIGS Equipment to the Amelio Group or its customers.

     

    (b) Core
      a-Si Equipment.
      Under
      the terms of its preferred vendor relationship, the STF Group shall be entitled
      to charge, as subcontractor to the Amelio Group (who shall serve as general
      contractor) for the production and sale of all Core a-Si Equipment (including
      Turnkey PV Module Manufacturing Facilities utilizing a-Si Equipment), such
      prices for such a-Si Equipment as shall provide to the STF Group a “Profit
      Margin” of twenty five percent (25%) on all orders of such Core a-Si Equipment.
      As used in this Section
      4.4(b),
      the
      term “Profit
      Margin”
shall
      mean an amount, payable in U.S. Dollars, as shall be equal to 1.33333 times
      the
      sum of the actual costs incurred by the STF Group for (A) labor, (B) materials
      (including parts, components and other materials supplied by subcontractors),
      and (C) indirect manufacturing costs (which indirect manufacturing costs shall
      not exceed 35% of labor costs) in connection with the manufacture and delivery
      of such CIGS Equipment to the Amelio Group or its customers.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    4.6 Purchase
      Orders and General Terms.

     

    (a) Each
      purchase by the Amelio Group from the STF Group pursuant to this Article IV
      shall be evidenced by a written purchase order containing delivery, service
      and
      quality requirements as shall be acceptable to Amelio and which are consistent
      with the price, performance, specifications, and quality provided by
      state-of-the-art providers within the industry; provided that such delivery
      terms and quality requirements imposed upon the STF Group shall not,
      individually or in the aggregate, be less favorable to the STF Group than those
      then being imposed by the Amelio Group upon other third Person vendors or
      suppliers who are not part of the STF Group.

     

    (b) All
      of
      the foregoing purchase orders shall be subject to the STF Group general vendor
      terms and conditions, substantially in the form of Exhibit
      A
      annexed
      hereto and made a part hereof (the “STF
      Group Terms and Conditions”).

     

    4.6 Favored
      Nations Terms.

     

    (a) As
      a
      preferred supplier the STF Group will supply Amelio a-Si Core Equipment and
      CIGS
      Core Equipment at prices and terms that are competitive with arm's length prices
      and other terms and conditions for identical or functionally equivalent
      quantities and types of a-Si Core Equipment or CIGS Core Equipment that may,
      from time to time, be available to the Amelio Group from other technically
      and
      financially credible third Person suppliers who are not Affiliates of the Amelio
      Group or any Affiliate of the Amelio Group (the “Unaffiliated
      Suppliers”).
      

    

    (b) In
      connection with the foregoing, unless the payment terms and other terms and
      conditions demanded by such Unaffiliated Supplier shall be less favorable to
      the
      Amelio Group than those then available from the STF Group, in no event shall
      the
      STF Group pricing exceed one hundred and ten percent (110%) of the pricing
      offered from time to time by any such Unaffiliated Supplier(s). In the event
      that Amelio receives and wishes to accept a proposed purchase order for any
      a-Si
      Core Equipment or CIGS Core Equipment from an Unaffiliated Supplier that is
      (i)
      less than ninety percent (90%) of the pricing for such a-Si Core Equipment
      or
      CIGS Core Equipment then the prices then being offered by the STF Group, and
      (ii) on payment and other terms and conditions no less favorable to the Amelio
      Group then the payment and other terms being offered to Amelio by the STF Group,
      Amelio will forward such proposed purchase order to the STF Group with a request
      that the STF Group reduce its pricing to within one hundred and ten percent
      (110%) of such Unaffiliated Supplier’s pricing. In the event that STF declines
      to reduce its pricing accordingly, Amelio shall be free to accept such
      Unaffiliated Supplier’s offer. 

    

    (c) The
      Parties acknowledge that each operates in a highly dynamic and competitive
      marketplace.  The Parties agree to meet and confer on a periodic basis to
      discuss the margin structures each is targeting for its various business
      initiatives, and the cost structure imposed by this Agreement, and to revisit
      these terms in good faith in light of changing market circumstances, to the
      extent appropriate and by mutual agreement.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    (d) Notwithstanding
      the foregoing, the “favored nation” and other provisions of this Section
      4.6
      shall
not
      apply to
      any a-Si Core Equipment or any CIGS Core Equipment that is to be sold by the
      Amelio Group to any one or more STF Group Customers, provided
      that,
      this
      provision shall not have the affect of reducing Amelio’s gross margin by more
      than five percent (5%) as compared to transactions of similar terms, size and
      structure.

    

    ARTICLE
      V

     

    
      ACCOUNTING
        AND AUDIT

    

     

    5.1 Accounting
      and Audit.
      With
      respect to the payments, capacities and other financial terms described in
      Articles III and IV, the Parties shall keep full, clear and accurate records
      and
      accounts regarding such payments, capacities and other financial terms for
      a
      period of three (3) years. Each Party shall have the right through a person(s)
      appointed by the Party to audit, not more than once a year and during normal
      business hours, all such records and accounts to the extent necessary to verify
      such payments, capacities and other financial terms and to verify no
      underpayment has been made hereunder. Such audit shall be conducted at each
      Party’s own cost and expense, provided that if any discrepancy or error
      exceeding five percent (5%) of the money actually due is found through the
      audit, the cost of the audit shall be born by the other Party.

     

    ARTICLE
      VI

     

    
      ADDITIONAL
        AGREEMENTS OF THE PARTIES

       

    

    6.1 Limited
      Scope of Agreement.
      Notwithstanding anything to the contrary, express or implied, contained in
      this
      Agreement or in any Exhibit hereto, the rights and obligations of the Parties
      contained in Article II of this Agreement apply only to CIGS Technology and
      CIGS
      PV Products, and shall not be applicable to any PV Equipment, PV Modules,
      Turnkey PV Module Manufacturing Facilities or power plants or projects, that
      use
      PV Technologies, other than CIGS Technology. It is expressly understood and
      agreed among all Parties hereto that each of the Amelio Group and the STF Group
      may individually (a) engage, directly or with third Persons, in the development,
      design and exploitation of a-Si Technology, microcrystalline a-SI Technology
      or
      any development, improvements, additions or technologies now or hereafter
      developed (other than CIGS Technology) that are used as a coating or other
      material to deposit the active layer on PV Modules or in PV Equipment; and
      (b)
      manufacture, sell, distribute or otherwise deal in PV Equipment, PV Modules,
      Turnkey PV Module Manufacturing Facilities or power plants or projects, that
      use
      any PV Technologies, other than CIGS Technology, without regard to this
      Agreement or any obligation to any other Party or Parties to this Agreement.
      

     

    6.2 Competition.
      Except
      only with respect to CIGS Technology and CIGS PV Products, and then only to
      the
      extent expressly provided in Articles III and IV, it is expressly understood
      and
      agreed that each of the Amelio Group and the STF Group are free to engage in
      activities that may or shall compete with the other throughout the
      world.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      VII

     

    TERM
      AND TERMINATION

     

    7.1. Term.
      Unless
      terminated earlier, this Agreement shall expire seven (7) years following the
      Commencement Date (“Term”).

     

    7.2. Termination.

     

    (a) Either
      Party may, at its option, terminate this Agreement in the event the other Party
      breaches any material obligation under this Agreement and fails to cure such
      breach within thirty (30) days from the date of receipt of notice of such breach
      given by the non-breaching party.

     

    (b) Either
      Party may, at its option, immediately terminate this Agreement by written notice
      to the other, in the event either Party: (i) files a petition in bankruptcy,
      (ii) enters into an agreement with its creditors, (iii) applies for or consents
      to the appointment of a receiver or trustee, (iv) makes an assignment for the
      benefit of creditors, (v) becomes subject to an attachment of, execution upon,
      or other judicial seizure of, all or substantially all of its assets, or (vi)
      becomes subject to involuntary proceedings under any bankruptcy or insolvency
      law (which proceedings are not dismissed within sixty (60) days.

     

    7.3. STF
      Obligations upon Termination.
      Any
      licenses to Amelio Group Intellectual Property that Amelio Group granted to
      STF
      Group hereunder shall terminate, and STF Group shall discontinue the use of
      the
      Amelio Group’s licensed Intellectual Property.

     

    7.4. Survival.
      Upon
      expiration of this Agreement, Article XI (Confidentiality) and the STF
      Selenization Equipment License in Section
      2.1(b)
      shall
      survive and the duties and obligations under that Article and Section shall
      continue.

     

    ARTICLE
      VIII

     

    REPRESENTATIONS AND
      WARRANTIES

     

    8.1. Mutual
      Representations and Warranties.
      Each
      Party represents and warrants:

     

    (a) It
      has
      the right and power to enter into this Agreement,

     

    (b) It
      has
      the right and authority to grant the assignments and licenses granted
      herein,

     

    (c) It
      is not
      aware of any assertion that its Intellectual Property infringes any granted
      patent, trademark or copyright of any person,

     

    (d) It
      is not
      aware of any pending or threatened claims before any governmental authority,
      which claim would likely affect or would give rise to litigation concerning
      the
      Intellectual Property licensed or assigned hereunder, and

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    (e) It
      is not
      a party to any other licensing or other agreement or arrangement, besides this
      Agreement, that relates to the Intellectual Property licensed or assigned
      hereunder and it has not granted any rights to any person with respect to the
      Intellectual Property licensed or assigned hereunder.

     

    8.2. DISCLAIMERS.

     

    (a) NOTHING
      CONTAINED IN THIS AGREEMENT SHALL BE CONSTRUED AS A WARRANTY OR REPRESENTATION
      THAT ANY MANUFACTURE, SALE, LEASE, USE OR IMPORTATION OF STF SELENIZATION
      EQUIPMENT OR AMELIO CIGS TECHNOLOGY WILL BE FREE FROM INFRINGEMENT OF PATENTS,
      COPYRIGHTS OR OTHER INTELLECTUAL PROPERTY RIGHTS OF OTHERS, SAID WARRANTIES
      BEING HEREBY DISCLAIMED, AND IT SHALL BE THE SOLE RESPONSIBILITY OF EACH PARTY
      TO MAKE SUCH DETERMINATION AS IS NECESSARY WITH RESPECT TO THE ACQUISITION
      OF
      LICENSES UNDER PATENTS AND OTHER INTELLECTUAL PROPERTY OF THIRD
      PARTIES.

     

    (b) EXCEPT
      AS
      UNAMBIGUOUSLY AND EXPRESSLY SET FORTH IN THIS AGREEMENT OR ANY EXHIBIT, THE
      PARTIES SPECIFICALLY DISCLAIM ALL OTHER REPRESENTATIONS AND WARRANTIES,
      INCLUDING IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR
      PURPOSE (WHETHER EXPRESS, IMPLIED, OR STATUTORY) REGARDING, RELATING TO,
      CONNECTED WITH OR ARISING OUT OF STF SELENIZATION EQUIPMENT AND AMELIO CIGS
      TECHNOLOGY OR ANY OTHER MATERIALS OR SERVICES FURNISHED OR PROVIDED TO EACH
      PARTY UNDER THIS AGREEMENT AND WITH RESPECT TO THE USE OF ANY OF THE
      FOREGOING.

     

    ARTICLE
      IX

     

    
      INDEMNIFICATION

    

     

    9.1. Mutual
      Indemnification.
      Each
      Party shall, at its cost and expense, indemnify, defend, and hold harmless
      the
      other Party and its and their respective agents from and against any Claims
      (as
      defined below in Section
      9.6)
      based
      upon, arising out of or otherwise related to:

     

    (a) any
      breach by such Party or any of its agents of any obligation, representation,
      or
      warranty of such Party under this Agreement,

     

    (b) any
      act,
      negligence, error, or omission by such Party or any of its agents with respect
      to its or their obligations under or by reason of this Agreement,

     

    (c) any
      violation of applicable law, or

     

    (d) any
      claim
      against a Party that the other Party’s licensed Intellectual Property described
      in Article II infringes any other person’s patents, trademarks or
      copyrights.

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    9.2. Liability
      Limitation.
      Neither
      Party shall have any obligation under the prior Section 9.1 with respect to
      any
      Claims resulting from the negligent or intentionally wrongful act or omission
      of
      the other Party or their respective officers, directors, representatives, agents
      or employees.

     

    9.3. STG
      Group Indemnification.
      The STF
      Group shall, at its sole cost and expense, indemnify, defend, and hold harmless
      each member of the Amelio Group and its and their respective agents from and
      against any Claims based upon, arising out of or otherwise related to any claim
      against the Amelio Group based on the manufacture or sale of the Amelio CIGS
      Technology manufactured or used by STF Group, including, without limitation,
      any
      Claims based upon, arising out of or otherwise related to any death or injury
      to
      any person or damage to any property to the extent caused by defective
      manufacture or sale of such Amelio CIGS Technology or by the negligent
      manufacture or sale of such Amelio CIGS Technology.

     

    9.4 Amelio
      Group Indemnification. The
      Amelio Group shall, at its sole cost and expense, indemnify, defend, and hold
      harmless each member of the STF Group and its and their respective agents from
      and against any Claims based upon, arising out of or otherwise related to any
      claim against the STF Group based on the Amelio CIGS Technology infringing
      any
      Intellectual Property rights of any Unaffiliated Person.

     

    9.5 Notice
      of Claims and Assistance.
      A Party
      shall, within three (3) Business Days from the date of receipt of notice of
      any
      Claim, furnish to the other Party a copy of such notice and inform the other
      Party of all known facts relating to such Claim. The indemnifying Party shall
      have the right, at its cost and expense, to defend, negotiate, and otherwise
      resolve any Claim; provided, however, that the indemnified Party shall have
      the
      right, at its cost and expense, to participate in such Claim and to employ
      counsel of its choice. Each Party shall provide all information in its
      possession and all reasonable assistance to the other Party as necessary to
      enable the other Party to defend any Claim.

     

    9.6 Assistance.
      Each
      Party shall provide all information in its possession and reasonable assistance
      to the other Party as necessary to enable the other Party to defend any such
      Claim.

     

    ARTICLE
      X

     

    
      REMEDIES

    

     

    10.1. Remedies.
      STF
      Group agrees and acknowledges Amelio Group does not have any adequate remedy
      at
      law for STF Group’s breach or threatened breach of the Limited STF Group License
      in Section
      2.2(b)
      or of
      Article XI (Confidentiality) of this Agreement, and STF Group agrees, if STF
      Group breaches, or threatens to commit such a breach of this Agreement, then
      Amelio Group shall have the following rights and remedies, in addition to,
      and
      not in lieu of, any other rights and remedies available to Amelio Group under
      law or in equity (including, but not limited to, the recovery of damages):
      the
      right and remedy to have the provisions of this Agreement specifically enforced
      (without posting bond or other security and without the need to prove damages)
      by any court having equity or other appropriate jurisdiction, including, but
      not
      limited to, the right to an entry against STF Group of restraining orders and
      injunctions (preliminary, mandatory, temporary and permanent) against
      violations, threatened or actual, and whether or not then continuing, of such
      provisions.

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    10.2. LIMITATIONS
      ON KINDS OF DAMAGES.
      IN NO
      EVENT WILL EITHER PARTY BE LIABLE TO THE OTHER FOR ANY PUNITIVE, EXEMPLARY,
      INDIRECT, SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES OF ANY KIND (INCLUDING
      LOSS OF PROFITS, LOSS OF USE, BUSINESS INTERRUPTION, LOSS OF DATA OR COSTS
      OF
      PROCUREMENT OF SUBSTITUTE GOODS, TECHNOLOGIES OR SERVICES OR COST OF COVER)
      IN
      CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT, WHETHER ALLEGED AS A BREACH
      OF
      CONTRACT OR TORTIOUS CONDUCT, INCLUDING NEGLIGENCE, EVEN IF SUCH PARTY HAS
      BEEN
      ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

     

    10.3. LIMITATION
      ON AMOUNT OF DAMAGES.
      EACH
      PARTY’S LIABILITY TO THE OTHER UNDER THIS AGREEMENT OR THE TERMINATION OF THIS
      AGREEMENT FOR DIRECT DAMAGES, WILL NOT, IN ANY EVENT, EXCEED, IN THE AGGREGATE,
      THE FEES AND PAYMENTS PAID PURSUANT TO THIS AGREEMENT PROVIDED THAT THE
      FOREGOING LIMITATION SHALL NOT APPLY TO EITHER PARTY’S LIABILITY FOR DIRECT
      DAMAGES FOR BREACH OF ARTICLE XI (CONFIDENTIALITY).

     

    ARTICLE
      XI

     

    CONFIDENTIALITY

     

    11.1. Confidentiality.
      During
      the Term and for a period of ten (10) years after the expiration or termination
      of this Agreement (“Confidentiality Term”), the Receiving Party shall (as used
      in this Article XI, (as used in this Article XI, “Disclosing Party” shall mean a
      Party that discloses Confidential Information under this Agreement. “Receiving
      Party” shall mean a party that receives Confidential Information under this
      Agreement.):

     

    (a) protect
      and hold in confidence a Disclosing Party’s Confidential Information (as defined
      below in Section
      11.7);
      

     

    (b) not
      disclose or use, or cause to be disclosed or used, the Confidential Information
      of the Disclosing Party to or by any person except with the prior written
      consent of the Disclosing Party and in accordance with this
      Agreement;

     

    (c) handle,
      preserve, and protect the Confidential Information of the Disclosing Party
      with
      at least the same degree of care the Receiving Party affords its own
      Confidential Information; and 

     

    (d) use
      diligent efforts to ensure that each of its agents preserves and protects the
      confidentiality of all Confidential Information of the Disclosing
      Party.

     

    Notwithstanding
      the foregoing, information shall not be deemed the Confidential Information
      of
      the Disclosing Party for purposes of this Agreement, if such
      information:

     

    (i) is
      or
      becomes public knowledge through no act or omission of the Receiving Party
      in
      violation of this Agreement, as established by documentary evidence; provided,
      however, that such information shall not be deemed a matter of public knowledge
      merely because it (A) is embraced by more general information in the prior
      possession of a Party or any other person or (B) is expressed in public
      literature in general terms not specifically in accordance with such
      information;

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    (ii) is
      lawfully received by, or otherwise made available to, the Receiving Party from
      an independent Person who does not owe a duty of confidentiality to the
      Disclosing Party, as established by documentary evidence;

     

    (iii) is
      already in the possession of the Receiving Party at the time of receipt from
      the
      Disclosing Party, as documented by pre-existing records of the Receiving Party
      and came into the possession of the Receiving Party from an independent person
      who did not owe a duty of confidentiality to the Disclosing Party in connection
      with the Confidential Information disclosed;

     

    (iv) is
      developed independently by the Receiving Party without any breach of this
      Agreement, as established by documentary evidence; or

     

    (v) subject
      to the following Section
      11.2,
      is
      required to be disclosed by the Receiving Party pursuant to any applicable
      law.

     

    11.2. Disclosure.

     

    (a) The
      Receiving Party shall immediately notify the Disclosing Party of receipt by
      the
      Receiving Party of any process, subpoena, demand, or request by any Person
      to
      disclose the Confidential Information of the Disclosing Party, and shall, as
      soon as practicable but in no event later than three (3) Business Days from
      the
      date of such receipt, furnish to the Disclosing Party a copy of such process,
      subpoena, demand, or request and inform the Disclosing Party of the
      circumstances relating thereto. The Receiving Party shall, at its cost and
      expense, take all reasonable steps to maintain and protect the confidentiality
      of the Confidential Information of the Disclosing Party, including, but not
      limited to, making a motion to quash or seeking a protective order against
      the
      disclosure of such Confidential Information; provided, however, that (i) nothing
      in this Agreement shall be deemed to require the Receiving Party to violate
      any
      law or judicial order and (ii) if a disclosure order is not quashed or a
      protective order is not obtained, then in response to such disclosure order,
      the
      Receiving Party may disclose only such Confidential Information of the
      Disclosing Party that, based upon the advice of the Receiving Party’s counsel,
      is legally required to be disclosed; provided, however, that within ten (10)
      Business Days from the date of such disclosure, the Receiving Party shall
      furnish to the Disclosing Party a copy of the Confidential Information disclosed
      and all correspondence and communications relating to such disclosure. The
      Disclosing Party also shall have the right to take any legal action to prevent
      disclosure of its Confidential Information, including, but not limited to,
      the
      right to appear on behalf of the Receiving Party as its attorney in fact, to
      represent the Receiving Party, and to employ counsel of its choice for these
      purposes, all at its cost and expense, and the Receiving Party shall assist
      and
      cooperate with the Disclosing Party in those efforts.

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    (b) If
      the
      Disclosing Party elects to exercise its rights under this Section
      11.2,
      it
      shall do so: (i) at its cost and expense, and (ii) shall hold harmless, defend,
      and indemnify the Receiving Party from and against any and all legal
      responsibility or liability from the exercise of these rights (except if caused
      by the negligence or willful misconduct of or breach of this Agreement by the
      Receiving Party).

     

    11.3. Confidentiality
      of Agreement.
      The
      provisions of this Article XI also shall apply to the contents of this
      Agreement; provided, however, that the contents hereof may be disclosed only
      on
      a confidential basis and pursuant to a confidentiality or secrecy agreement
      acceptable to the Disclosing Party (a) as required by applicable laws, (b)
      in
      connection with the enforcement of this Agreement, or (c) to such agents,
      professional advisors, and lenders of a Receiving Party who have a need to
      know
      such information.

     

    11.4. Limitation
      on Use of Confidential Information.

     

    (a) Except
      as
      provided in Section
      11.2,
      each of
      the Parties shall: (a) limit disclosure of any Confidential Information
      received by it under this Agreement to only those of its agents who are directly
      involved with this Agreement; (b) upon such disclosure, advise such agents
      of
      the proprietary nature of such Confidential Information; and (c) be responsible
      for any breach of this Agreement by its agents.

     

    (b) Except
      as
      provided in Section
      11.2,
      each of
      the Parties shall advise subcontractors and customers purchasing PV Equipment,
      PV Modules or Turnkey PV Module Manufacturing Facilities of the provisions
      of
      this Article XI and require such subcontractors and customers to agree to the
      terms of this Article XI.

     

    11.5. Notification
      of Breach.
      The
      Receiving Party shall (a) notify the Disclosing Party in the event there is
      any
      breach of this Article XI, including, but not limited to, conditions or
      circumstances that indicate Confidential Information of the Disclosing Party
      has
      been or may have been compromised or improperly disclosed or used and (b) upon
      request of the Disclosing Party, take all steps reasonably necessary to recover
      any and all Confidential Information that has been or may have been compromised
      or improperly disclosed or used. The cost and expense of taking such steps
      shall
      be borne solely by the Receiving Party.

     

    11.6. Return
      of Confidential Information.
      All
      Confidential Information shall be and remain the sole property of the Disclosing
      Party, and the Receiving Party shall have no rights or interests to or in such
      Confidential Information (except as provided in this Agreement). Immediately
      upon the expiration or termination of this Agreement, the Receiving Party shall
      (a) discontinue the use of the Confidential Information of the Disclosing Party,
      and (b) take reasonable steps to destroy all Confidential Information of the
      Disclosing Party that Receiving Party may not retain under this Agreement,
      including, but not limited to, all copies and originals of such Confidential
      Information in any medium and any material derived from or incorporating
      Confidential Information, accompanied by a written confirmation that all copies
      have been destroyed and all electronic memories, including archival media,
      have
      been purged of such Confidential Information.

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    11.7. Confidential
      Information.
      “Confidential
      Information”
means
      any and all information and know-how in any form, whether of a technical,
      financial, business or other nature, including, but not limited to, information
      relating to a Party’s research, development, inventions, products, production,
      manufacturing, finances, marketing, customers, or business plans, including,
      but
      not limited to, trade secrets, know-how, data, formulas, processes, other
      intellectual property, or confidential communications, that (i) is or has been
      disclosed to or otherwise received or obtained by a Receiving Party, whether
      or
      not in connection with or pursuant to this Agreement and (ii) has been marked
      by
      the Disclosing Party as “Confidential” or, if disclosed orally, has been
      confirmed in writing (including, but not limited to, letter, facsimile, E-mail)
      by the Disclosing Party to be “Confidential” within ten (10) Business Days from
      the date of such disclosure.

     

    ARTICLE
      XII

     

    MISCELLANEOUS

     

    12.1. Expenses.
      Whether
      or not the transactions contemplated hereby are consummated, all costs and
      expenses incurred in connection with this Agreement and the transactions
      contemplated hereby shall be paid by (a) the Amelio Group, with respect to
      such
      costs and expenses incurred by it, and (b) the STF Group, with respect to such
      costs and expenses incurred by the STF Groups.

     

    12.2. Construction
      of this Agreement.
      All of
      the Parties to this Agreement have participated jointly in the negotiation
      and
      drafting of this Agreement. In the event any ambiguity or question of
      interpretation arises, this Agreement and the other documents and instruments
      executed in connection with this Agreement shall be construed as if drafted
      jointly, and no presumption or burden of proof shall arise favoring or
      disfavoring any Party by virtue of the authorship of any provision of this
      Agreement or such other documents and instruments. Any item disclosed on a
      disclosure schedule to this Agreement shall be deemed disclosed for and
      incorporated into all other disclosure schedules to which such item is
      applicable. The term “including” in this Agreement shall mean “including without
      limitation”. All references to immediately available funds or dollar amounts
      contained in this Agreement shall mean United States dollars. The headings
      contained in this Agreement are for reference purposes only and shall not affect
      in any way the meaning or interpretation of this Agreement. References to
“Schedules,” “Articles” or “Sections” herein shall be deemed to refer to the
      applicable disclosure schedule, article or section of this
      Agreement.

     

    12.3. Assignment.
      Except
      in connection with a Sale of Control by either the Amelio Group or the STF
      Group
      (or any member thereof), this Agreement and the respective rights and
      obligations of the Amelio Group and the STF Group hereunder shall not be
      assigned, delegated or otherwise transferred by either the Amelio Group or
      the
      STF Group without the prior written consent of the other. 

     

    12.4. Successors
      and Assigns.
      This
      Agreement shall inure to the benefit of, and be binding upon and enforceable
      against, the successors and permitted assigns of the respective Parties hereto.
      

     

    12.5. Amendments.
      No
      amendment to or modification of this Agreement shall be effective unless it
      shall be in writing and signed by Amelio, acting on behalf of all of the members
      of the Amelio Group, and by the Company, acting on behalf of all members of
      the
      STF Group.

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

     

    12.6. Notices.
      All
      notices and other communications given under this Agreement shall be in writing
      and shall be deemed duly given (a) on the date of delivery, if delivered
      personally, (b) on the date of transmission, if sent via facsimile transmission
      to the facsimile number given below, and telephonic or written confirmation
      of
      receipt is obtained promptly after completion of transmission, (c) the Business
      Day after the date of delivery to a reputable and recognized next-day express
      courier service, or (d) three (3) Business Days after (or, in the case of a
      notice or communication sent overseas, ten (10) Business Days after) being
      mailed by registered or certified mail (return receipt requested), postage
      prepaid, to the Parties at the following addresses (or at such other address
      for
      a party as shall be specified by like notice):

    

      
        	
                If
                  to the STF Group, to:

              	 	
                Solar
                  Thin Films, Inc.

              
	 	 	
                505
                  Grove Street

              
	 	 	
                Haddonfield,
                  New Jersey 08033

              
	 	 	
                Attn:
                  Peter Lewis, Chief Executive Officer

              
	 	 	
                Tel:
                  (856) 673-1749

              
	 	 	
                Fax:
                  (609) 434-0602

              
	 	 	
                Email:
                  plewis@solarthinfilms.com

              
	 	 	 
	
                with
                  a required copy to:

              	 	
                Hodgson
                  Russ LLP

              
	 	 	
                1540
                  Broadway

              
	 	 	
                New
                  York, New York 10036

              
	 	 	
                Attention:
                  Stephen A. Weiss, Esq.

              
	 	 	
                Tel:
                  (212) 751-4300

              
	 	 	
                Facsimile:
                  (212) 751-0928

              
	 	 	
                email:
                  sweiss@hodgsonruss.com

              
	 	 	 
	
                If
                  to Amelio Group, to:

              	 	
                Amelio
                  Solar, Inc.

              
	 	 	
                200
                  Ludlow Drive, Suite C

              
	 	 	
                Ewing,
                  NJ 08638

              
	 	 	
                Attention:
                  Bruce Bower, CEO

              
	 	 	
                Tel:
                  609-434-0600

              
	 	 	
                Facsimile:
                  609-434-0602

              
	 	 	
                email:
                  bdbower@yahoo.com

              
	 	 	 
	
                with
                  a required copy to:

              	 	
                Day
                  Pitney LLP

              
	 	 	
                7
                  Times Square Tower

              
	 	 	
                New
                  York, New York 10036

              
	 	 	
                Attention:
                  Sabino (Rod) Rodriguez, III

              
	 	 	
                Tel:
                  (212) 297-2454

              
	 	 	
                Facsimile:
                  (718) 764-4356

              
	
                 

              	 	
                email:
                  srodriguez@daypitney.com

              

      

    

     

    Such
      addresses may be changed, from time to time by means of a notice given in the
      manner provided in this Section
      12.6
      (provided that no such notice shall be effective until it is received by the
      other Parties hereto).

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

     

    12.7. Consent
      to Jurisdiction.
      Each of
      Parties do hereby irrevocably submits to the exclusive jurisdiction of (a)
      the
      Supreme Court of the State of New York sitting in New York County, and (b)
      the
      United States District Court for the Southern District of New York, for the
      purposes of any suit, action or other proceeding arising out of this Agreement
      and the Transaction Documents or any transaction contemplated hereby or thereby,
      except in each case with respect to any matters related to title or possession
      of real property, and any other matters that are justiciable only under the
      jurisdiction of another court. Each of the Parties irrevocably consent to
      service of process out of such courts in any action or proceeding by the mailing
      of copies thereof by registered or certified mail, postage prepaid, or by
      recognized overnight courier or delivery service, to the Parties at their
      respective addresses set forth herein. Each of the Parties irrevocably waives
      any objection which it may now or hereafter have to the laying of venue of
      any
      of the aforesaid actions or proceedings arising out of or in connection with
      this Agreement brought in the courts referred to above and hereby further
      irrevocably waives and agrees, to the full extent permitted by Applicable Law,
      not to plead or claim in any such court that any such action or proceeding
      brought in any such court has been brought in any inconvenient
      forum.

     

    12.8. Severability.
      If any
      provision of this Agreement or the application of any such provision to any
      Person or circumstance shall be held invalid, illegal or unenforceable in any
      respect by a court of competent jurisdiction, such invalidity, illegality or
      unenforceability shall not affect any other provision hereof and the Parties
      hereto shall negotiate in good faith to modify this Agreement, so as to effect
      the original intent of the Parties as closely as possible in a mutually
      acceptable manner in order that the transactions contemplated hereby may be
      consummated as originally contemplated.

     

    12.9. Waiver.
      Waiver
      of any term or condition of this Agreement by any Party shall be effective
      if in
      a writing signed by the Party against whom such waiver is asserted. Any such
      waiver shall not be construed as a waiver of any subsequent breach or failure
      of
      the same term or condition, or a waiver of any other term of this Agreement.
      No
      failure or delay by any Party in exercising any right, power or privilege
      hereunder shall operate as a waiver thereof nor shall any single or partial
      exercise thereof preclude any other or further exercise thereof or the exercise
      of any other right, power or privilege.

     

    12.10. Counterparts.
      This
      Agreement may be executed in any number of counterparts, all of which shall
      be
      considered one and the same agreement, and shall become effective when one
      or
      more such counterparts have been signed by each of the Parties to this Agreement
      and delivered to the other Parties, it being understood that all Parties need
      not sign the same counterpart.

     

    12.11. Entire
      Agreement.
      This
      Agreement, including the disclosure schedules hereto and the other documents
      delivered pursuant to this Agreement, contains the entire agreement and
      understanding between the Parties hereto with respect to the subject matter
      hereof and supersede all prior and contemporaneous agreements, negotiations,
      correspondence, undertakings and understandings, oral or written, relating
      to
      such subject matter.

     

    12.12. Governing
      Law.
      This
      Agreement shall be governed by and construed in accordance with the internal
      laws of the State of New York applicable to agreements made and to be performed
      entirely within the State of New York, without regard to the conflicts of law
      principles of such state.

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

     

    12.13. Regulatory
      Approvals.
      The
      Parties are responsible for obtaining their own regulatory approvals, including
      any necessary approvals for the sale, export or import, of products that
      practice Intellectual Property licensed under this Agreement.

     

    12.14. Time
      is of the Essence.
      Time is
      of the essence in the performance of this Agreement.

     

    [the
      balance of this page intentionally left blank – signature page
      follows]

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF,
      the
      Parties have caused this Agreement to be duly executed as of the date first
      written above.

    

      
        	 	
                AMELIO
                  SOLAR, INC.

              
	 	 	 
	 	 	 
	 	
                By:

              	
                /s/
                  Bruce Bower

              
	 	 	
                Name:
                  Bruce Bower

              
	 	 	
                Title:
                  Chief Executive Officer

              
	 	 	 
	 	 	 
	 	
                SOLAR
                  THIN FILMS, INC.

              
	 	 	 
	 	 	 
	 	
                By

              	
                /s/
                  Robert M. Rubin

              
	 	 	
                Name:
                  Robert M. Rubin

              
	 	 	
                Title:
                  Chairman and CFO

              
	 	 	 
	 	 	 
	 	
                KRAFT
                  ELEKTRONIKAI ZRT

              
	 	 	 
	 	 	 
	 	
                By

              	
                /s/
                  Robert M. Rubin

              
	 	 	
                Name:
                  Robert M. Rubin

              
	 	 	
                Title:
                  Chairman

              

      

    

     

    
      
        
        

      

      
        24

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