Document:

EX-4.10

 

Exhibit 4.10

REGISTRATION RIGHTS AGREEMENT

between

FIRST SOLAR HOLDINGS, INC.

and

GOLDMAN, SACHS & CO.

Dated as of February 22, 2006

 

 

          This REGISTRATION RIGHTS AGREEMENT (this “Agreement”), is made as of February 22,
2006, between First Solar Holdings, Inc., a Delaware corporation (the “Company”) and
Goldman, Sachs & Co., a New York corporation, or one or more of its Affiliates (together with its
successors and permitted assigns, “GS”). All capitalized terms used and not defined in
this Agreement shall have the meanings assigned to such terms in the Purchase Agreement (as defined
below).

          WHEREAS, simultaneously herewith, GS and the Company are executing and delivering a Purchase
Agreement (as amended, supplemented or modified from time to time, the “Purchase
Agreement”), pursuant to which, upon the terms and subject to the conditions contained therein,
the Company has agreed to issue and sell, and GS has agreed to purchase, convertible senior
subordinated notes due 2011 in the aggregate principal amount of $74,000,000 (the “Notes”);

          WHEREAS, pursuant to the terms and conditions of the Purchase Agreement, in connection with
certain redemptions of the Notes, the Purchaser will receive warrants to purchase common stock of
the Company (the “Warrants”) pursuant to the terms of a Warrant Agreement (as amended,
supplemented or modified from time to time, the “Warrant Agreement”), among the Company,
the Purchaser and each of the other persons listed on the signature pages attached thereto or who
otherwise hereafter becomes a party thereto;

          WHEREAS, simultaneously herewith, GS and the Company are executing and delivering an Equity
Rights Agreement (the “Equity Rights Agreement”) providing, among other things, for certain
rights and obligations with respect to the ownership of the shares of Common Stock issuable upon
conversion of the Notes or exercise of the Warrants; and

          WHEREAS, in connection with the execution and delivery by GS and the Company of the Purchase
Agreement and the consummation of the transactions contemplated thereby, the Company has agreed to
provide GS with the registration rights set forth in this Agreement.

          ACCORDINGLY, the parties hereto agree as follows:

     1. Certain Definitions.

          As used in this Agreement, capitalized terms not otherwise defined herein shall have the
meanings ascribed to them below:

     “Affiliate” means (i) with respect to any Person, any other Person directly or
indirectly controlling or controlled by or under direct or indirect common control with such
specified Person or (ii) with respect to any individual, shall also mean the spouse or child of
such individual; provided, that neither the Company nor any Person controlled by the Company shall
be deemed to be an Affiliate of any Holder.

     “Certificate of Incorporation” means the Certificate of Incorporation of the Company,
as amended and in effect on the date hereof.

     “Common Stock” means the common stock, par value $0.001 per share, of the Company

 

 

and any equity securities issued or issuable in exchange for or with respect to the Common
Stock by way of a stock dividend, stock split or combination of shares or in connection with a
reclassification, recapitalization, merger, consolidation or other reorganization.

     “Common Stock Equivalent” means all options, warrants and other securities convertible
into, or exchangeable or exercisable for, (at any time or upon the occurrence of any event or
contingency and without regard to any vesting or other conditions to which such securities may be
subject), Common Stock.

     “Equity Offering” shall have the meaning set forth in the Purchase Agreement.

     “Expenses” means any and all fees and expenses incurred in connection with the
Company’s performance of or compliance with Article 2, including, without limitation: (i) SEC,
stock exchange or NASD registration and filing fees and all listing fees and fees with respect to
the inclusion of securities on the New York Stock Exchange or on any securities market on which the
Common Stock is listed or quoted, (ii) fees and expenses of compliance with state securities or
“blue sky” laws and in connection with the preparation of a “blue sky” survey, including without
limitation, reasonable fees and expenses of blue sky counsel, (iii) printing and copying expenses,
(iv) messenger and delivery expenses, (v) expenses incurred in connection with any road show, (vi)
fees and disbursements of counsel for the Company, (vii) with respect to each registration, the
fees and disbursements of one counsel for the selling Holder(s) (selected by the Majority
Participating Holders, in the case of a registration pursuant to Section 2.1, and selected by the
underwriter, in the case of a registration pursuant to Section 2.2), (viii) fees and disbursements
of all independent public accountants (including the expenses of any audit and/or “cold comfort”
letter) and fees and expenses of other persons, including special experts, retained by the Company,
(ix) fees and expenses payable to a Qualified Independent Underwriter (as such term is defined in
Schedule E to the By-Laws of the NASD) and (x) any other fees and disbursements of underwriters, if
any, customarily paid by issuers of securities.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended.

     “Holder” or “Holders” means any Person who is a signatory to this Agreement
and any Person who shall hereafter acquire and hold Registrable Securities in accordance with the
terms of the Purchase Agreement, the Warrant Agreement or the Equity Rights Agreement.

     “Majority Participating Holders” means Participating Holders holding more than 50% of
the Registrable Securities proposed to be included in any offering of Registrable Securities by
such Participating Holders pursuant to Section 2.1 or Section 2.2 hereto.

     “Person” means any individual, corporation, limited liability company, limited or
general partnership, joint venture, association, joint-stock company, trust, unincorporated
organization or government or any agency or political subdivisions thereof.

     “Registrable Securities” means (a) any shares of Common Stock held by the Holders and
(b) any shares of Common Stock issued or issuable, directly or indirectly, upon the conversion of
Notes or exercise of Warrants held by the Holders, pursuant to the terms of the Purchase Agreement
or Warrant Agreement, as applicable, or in exchange for or with respect to the Common Stock
referenced in clause (a) above, or the Notes or Warrants referenced in clause (b)

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above, by way of stock dividend, stock split or combination of shares or in connection with a
reclassification, recapitalization, merger, consolidation or other reorganization. As to any
particular Registrable Securities, such securities shall cease to be Registrable Securities when
(A) a registration statement with respect to the sale of such securities shall have been declared
effective under the Securities Act and such securities shall have been disposed of in accordance
with such registration statement, or (B) such securities shall have been sold (other than in a
privately negotiated sale) pursuant to Rule 144 (or any successor provision) under the Securities
Act and in compliance with the requirements of paragraphs (f) and (g) of Rule 144 (notwithstanding
the provisions of paragraph (k) of such Rule).

     “SEC” means the Securities and Exchange Commission.

     “Securities Act” means the Securities Act of 1933, as amended.

     “Trading Day” means a day on which the principal national securities exchange on which
the Common Stock is quoted, listed or admitted to trading is open for the transaction of business
or, if the Common Stock is not quoted, listed or admitted to trading on any national securities
exchange (or the Nasdaq Stock Market), any day other than a Saturday, Sunday, or a day on which
commercial banks in the City of New York are authorized or obligated by law or executive order to
close.

     2. Registration Rights.

          2.1. Demand Registrations.

               (a) (i) Subject to Section 2.1(b) below, at any time after the initial Equity Offering, a
Holder or the Holders shall have the right to require the Company to file a registration statement
under the Securities Act covering such aggregate number of Registrable Securities which represents
20% or greater of the then outstanding Registrable Securities, by delivering a written request
therefor to the Company specifying the number of Registrable Securities to be included in such
registration by such Holders and the intended method of distribution thereof. All such requests by
any Holder pursuant to this Section 2.1(a)(i) are referred to herein as “Demand Registration
Requests,” and the registrations so requested are referred to herein as “Demand
Registrations” (with respect to any Demand Registration, the Holders making such demand for
registration being referred to as the “Initiating Holders”). As promptly as practicable,
but no later than ten days after receipt of a Demand Registration Request, the Company shall give
written notice (the “Demand Exercise Notice”) of such Demand Registration Request to all
Holders of record of Registrable Securities.

                    (ii) The Company, subject to Sections 2.3 and 2.6, shall include in a Demand Registration (x)
the Registrable Securities of the Initiating Holders and (y) the Registrable Securities of any
other Holder of Registrable Securities which shall have made a written request to the Company for
inclusion in such registration (together with the Initiating Holders, the “Participating
Holders”)(which request shall specify the maximum number of Registrable Securities intended to
be disposed of by such Participating Holders) within 60 days after the receipt of the Demand
Exercise Notice (or, 30 days if, at the request of the Initiating

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Holders, the Company states in such written notice or gives telephonic notice to all Holders,
with written confirmation to follow promptly thereafter, that such registration will be on a Form
S-3).

                    (iii) The Company shall, as expeditiously as possible but subject to Section 2.1(b), use its
commercially reasonable efforts to (x) effect such registration under the Securities Act of the
Registrable Securities which the Company has been so requested to register, for distribution in
accordance with such intended method of distribution and (y) if requested by the Majority
Participating Holders, obtain acceleration of the effective date of the registration statement
relating to such registration.

               (b) Notwithstanding anything to the contrary in Section 2.1(a), the Demand Registration rights
granted in Section 2.1(a) to the Holders are subject to the following limitations: (i) the Company
shall not be required to cause a registration pursuant to Section 2.1(a)(i) to be filed within 90
days or to be declared effective within a period of 180 days after the effective date of any other
registration statement of the Company filed pursuant to the Securities Act; (ii) if the Company, in
its good faith judgment, determines that any registration of Registrable Securities should not be
made or continued because it would materially interfere with any material financing, acquisition,
corporate reorganization or merger or other transaction or event involving the Company or any of
its subsidiaries or would otherwise not be in the best interests of the Company (a “Valid
Business Reason”), the Company may postpone filing a registration statement relating to a
Demand Registration Request until such Valid Business Reason no longer exists, but in no event
shall the Company avail itself of such right for more than 90 days, in the aggregate, in any period
of 365 consecutive days (such period of postponement or withdrawal under this clause (ii), the
“Postponement Period”); and the Company shall give notice of its determination to postpone
or withdraw a registration statement and of the fact that the Valid Business Reason for such
postponement or withdrawal no longer exists, in each case, promptly after the occurrence thereof;
(iii) the Company shall not be obligated to effect more than two Demand Registrations under Section
2.1(a) for the Holders; and (iv) the Company shall not be required to effect a Demand Registration
unless the Registrable Securities to be included in such registration have an aggregate anticipated
offering price of at least $25,000,000 (based on the then-current market price of the Common
Stock).

          If the Company shall give any notice of postponement or withdrawal of any registration
statement pursuant to clause (ii) above, the Company shall not, during the period of postponement
or withdrawal, register any equity security of the Company, other than pursuant to a registration
statement on Form S-4 or S-8 (or an equivalent registration form then in effect). Each Holder of
Registrable Securities agrees that, upon receipt of any notice from the Company that the Company
has determined to withdraw any registration statement pursuant to clause (ii) above, such Holder
will discontinue its disposition of Registrable Securities pursuant to such registration statement
and, if so directed by the Company, will deliver to the Company (at the Company’s expense) all
copies, other than permanent file copies, then in such Holder’s possession of the prospectus
covering such Registrable Securities that was in effect at the time of receipt of such notice. If
the Company shall have withdrawn or prematurely terminated a registration statement filed under
Section 2.1(a)(i) (whether pursuant to clause (ii) above or as a result of any stop order,
injunction or other order or requirement of the SEC or any other governmental agency or court), the
Company shall not be considered to have effected an effective registration for the purposes of this
Agreement until the Company shall have filed a

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new registration statement covering the Registrable Securities covered by the withdrawn
registration statement and such registration statement shall have been declared effective and shall
not have been withdrawn. If the Company shall give any notice of withdrawal or postponement of a
registration statement, the Company shall, at such time as the Valid Business Reason that caused
such withdrawal or postponement no longer exists (but in no event later than three months after the
date of the postponement or withdrawal), use its commercially reasonable efforts to effect the
registration under the Securities Act of the Registrable Securities covered by the withdrawn or
postponed registration statement in accordance with this Section 2.1 (unless the Initiating Holders
shall have withdrawn such request, in which case the Company shall not be considered to have
effected an effective registration for the purposes of this Agreement).

          (c) The Company, subject to Sections 2.3 and 2.6, may elect to include in any registration
statement and offering made pursuant to Section 2.1(a)(i), (i) authorized but unissued shares of
Common Stock or shares of Common Stock held by the Company as treasury shares and (ii) any other
shares of Common Stock which are requested to be included in such registration pursuant to the
exercise of piggyback rights granted by the Company which are not inconsistent with the rights
granted in, or otherwise conflict with the terms of, this Agreement (“Additional Piggyback
Rights”); provided, however, that such inclusion shall be permitted only to the extent that it
is pursuant to and subject to the terms of the underwriting agreement or arrangements, if any,
entered into by the Participating Holders.

          (d) In connection with any Demand Registration, the Company shall have the right to designate
the lead managing underwriter in connection with such registration and each other managing
underwriter for such registration, provided that in each case, each such underwriter is reasonably
satisfactory to the Majority Participating Holders.

     2.2. Piggyback Registrations.

          (a) If, at any time, the Company proposes or is required to register any of its equity
securities under the Securities Act (other than pursuant to (i) registrations on such form or
similar form(s) solely for registration of securities in connection with an employee benefit plan
or dividend reinvestment plan or an acquisition, merger or consolidation or (ii) a Demand
Registration under Section 2.1) on a registration statement on Form S-1, Form S-2 or Form S-3 (or
an equivalent general registration form then in effect), whether or not for its own account, the
Company shall give prompt written notice of its intention to do so to each of the Holders of record
of Registrable Securities. Upon the written request of any such Holder, made within 15 days
following the receipt of any such written notice (which request shall specify the maximum number of
Registrable Securities intended to be disposed of by such Holder and the intended method of
distribution thereof), the Company shall, subject to Sections 2.2(b), 2.3 and 2.6 hereof, use its
commercially reasonable efforts to cause all such Registrable Securities, the holders of which have
so requested the registration thereof, to be included in the registration statement with the
securities which the Company at the time proposes to register to permit the sale or other
disposition by the Holders (in accordance with the intended method of distribution thereof) of the
Registrable Securities to be so registered. No registration of Registrable Securities effected
under this Section 2.2(a) shall relieve the Company of its obligations to effect Demand
Registrations under Section 2.1 hereof.

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          (b) If, at any time after giving written notice of its intention to register any equity
securities and prior to the effective date of the registration statement filed in connection with
such registration, the Company shall determine for any reason not to register or to delay
registration of such equity securities, the Company will give written notice of such determination
to all Holders of record of Registrable Securities and (i) in the case of a determination not to
register, shall be relieved of its obligation to register any Registrable Securities in connection
with such abandoned registration, without prejudice, however, to the rights of Holders under
Section 2.1, and (ii) in the case of a determination to delay such registration of its equity
securities, shall be permitted to delay the registration of such Registrable Securities for the
same period as the delay in registering such other equity securities.

          (c) Any Holder shall have the right to withdraw its request for inclusion of its Registrable
Securities in any registration statement pursuant to this Section 2.2 by giving written notice to
the Company of its request to withdraw; provided, however, that (i) such request must be made in
writing prior to the earlier of the execution of the underwriting agreement or the execution of the
custody agreement with respect to such registration and (ii) such withdrawal shall be irrevocable
and, after making such withdrawal, a Holder shall no longer have any right to include Registrable
Securities in the registration as to which such withdrawal was made.

     2.3. Allocation of Securities Included in Registration Statement.

               (a) If any requested registration made pursuant to Section 2.1 involves an underwritten
offering and the lead managing underwriter of such offering (the “Manager”) shall advise
the Company that, in its view, the number of securities requested to be included in such
registration by the Holders of Registrable Securities or any other persons (including those shares
of Common Stock requested by the Company to be included in such registration) exceeds the largest
number (the “Section 2.3(a) Sale Number”) that can be sold in an orderly manner in such
offering within a price range acceptable to the Majority Participating Holders, the Company shall
use its commercially reasonable efforts to include in such registration:

                    (i) first, all Registrable Securities requested to be included in such registration by the
Holders thereof; provided, however, that, if the number of such Registrable Securities exceeds the
Section 2.3(a) Sale Number, the number of such Registrable Securities (not to exceed the Section
2.3(a) Sale Number) to be included in such registration shall be allocated on a pro rata basis
among all Holders requesting that Registrable Securities be included in such registration, based on
the number of Registrable Securities then owned by each such Holder requesting inclusion in
relation to the number of Registrable Securities owned by all Holders requesting inclusion;

                    (ii) second, to the extent that the number of securities to be included pursuant to clause (i)
of this Section 2.3(a) is less than the Section 2.3(a) Sale Number, the remaining shares to be
included in such registration shall be allocated on a pro rata basis among all holders requesting
that securities be included in such registration pursuant to the exercise of Additional Piggyback
Rights (“Piggyback Shares”), based on the aggregate number of Piggyback Shares then owned
by each holder requesting inclusion in relation to the aggregate

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number of Piggyback Shares owned by all holders requesting inclusion, up to the Section 2.3(a)
Sale Number; and

                    (iii) third, to the extent that the number of securities to be included pursuant to clauses
(i) and (ii) of this Section 2.3(a) is less than the Section 2.3(a) Sale Number, any securities
that the Company proposes to register, up to the Section 2.3(a) Sale Number.

          If, as a result of the proration provisions of this Section 2.3(a), any Holder shall not be
entitled to include all Registrable Securities in a registration that such Holder has requested be
included, such Holder may elect to withdraw his request to include Registrable Securities in such
registration or may reduce the number requested to be included; provided, however, that (x) such
request must be made in writing prior to the earlier of the execution of the underwriting agreement
or the execution of the custody agreement with respect to such registration and (y) such withdrawal
shall be irrevocable and, after making such withdrawal, such Holder shall no longer have any right
to include Registrable Securities in the registration as to which such withdrawal was made.

               (b) If any registration pursuant to Section 2.2 involves an underwritten initial Equity
Offering that was initially proposed by the Company after the date hereof as a primary registration
of its securities and the Manager shall advise the Company that, in its view, the number of
securities requested to be included in such registration exceeds the number (the “Section
2.3(b) Sale Number”) that can be sold in an orderly manner in such registration within a price
range acceptable to the Company, the Company shall include in such registration:

                    (i) first, all Common Stock that the Company proposes to register for its own account;

                    (ii) second, to the extent that the number of securities to be included pursuant to clause (i)
of this Section 2.3(b) is less than the Section 2.3(b) Sale Number, any Common Stock requested to
be included in such registration by JWMA Partners, L.L.C. and Michael J. Ahearn; and

                    (iii) third, to the extent that the number of securities to be included pursuant to clauses
(i) and (ii) of this Section 2.3(b) is less than the Section 2.3(b) Sale Number, the remaining
shares to be included in such registration shall be allocated on a pro rata basis among all holders
requesting that Registrable Securities or Piggyback Shares be included in such registration
pursuant to the exercise of piggyback rights pursuant to Section 2.2 of this Agreement or
Additional Piggyback Rights, based on the aggregate number of Registrable Securities and Piggyback
Shares then owned by each holder requesting inclusion in relation to the aggregate number of
Registrable Securities and Piggyback Shares owned by all holders requesting inclusion, up to the
Section 2.3(b) Sale Number.

               (c) If any registration pursuant to Section 2.2 involves an underwritten offering other than
an initial Equity Offering that was initially proposed by the Company after the date hereof as a
primary registration of its securities and the Manager shall advise the Company that, in its view,
the number of securities requested to be included in such registration

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exceeds the number (the “Section 2.3(c) Sale Number”) that can be sold in an orderly
manner in such registration within a price range acceptable to the Company, the Company shall
include in such registration:

                    (i) first, all Common Stock that the Company proposes to register for its own account; and

                    (ii) second, to the extent that the number of securities to be included pursuant to clauses
(i) of this Section 2.3(c) is less than the Section 2.3(c) Sale Number, the remaining shares to be
included in such registration shall be allocated on a pro rata basis among all holders requesting
that Registrable Securities or Piggyback Shares be included in such registration pursuant to the
exercise of piggyback rights pursuant to Section 2.2 of this Agreement or Additional Piggyback
Rights, based on the aggregate number of Registrable Securities and Piggyback Shares then owned by
each holder requesting inclusion in relation to the aggregate number of Registrable Securities and
Piggyback Shares owned by all holders requesting inclusion, up to the Section 2.3(c) Sale Number.

               (d) If any registration pursuant to Section 2.2 involves an underwritten offering that was
initially proposed by holders of securities of the Company that have the right to require such
registration pursuant to an agreement entered into by the Company in accordance with Section 4.7
hereof (“Additional Demand Rights”) and the Manager shall advise the Company that, in its
view, the number of securities requested to be included in such registration exceeds the number
(the “Section 2.3(d) Sale Number”) that can be sold in an orderly manner in such
registration within a price range acceptable to the Company, the Company shall include in such
registration:

                    (i) first, all securities requested to be included in such registration by the holders of
Additional Demand Rights (“Additional Registrable Securities”), provided, however, that, if
the number of such Additional Registrable Securities exceeds the Section 2.3(d) Sale Number, the
number of such Additional Registrable Securities (not to exceed the Section 2.3(d) Sale Number) to
be included in such registration shall be allocated on a pro rata basis among all holders of
Additional Registrable Securities requesting that Additional Registrable Securities be included in
such registration, based on the number of Additional Registrable Securities then owned by each such
holder requesting inclusion in relation to the number of Additional Registrable Securities owned by
all of such holders requesting inclusion;

                    (ii) second, to the extent that the number of securities to be included pursuant to clause (i)
of this Section 2.3(d) is less than the Section 2.3(d) Sale Number, any Common Stock that the
Company proposes to register for its own account, up to the Section 2.3(d) Sale Number, and

                    (iii) third, to the extent that the number of securities to be included pursuant to clauses
(i), and (ii) of this Section 2.3(d) is less than the Section 2.3(d) Sale Number, the remaining
shares to be included in such registration shall be allocated on a pro rata basis among all holders
requesting that Registrable Securities or Piggyback Shares be included in such registration
pursuant to the exercise of piggyback rights pursuant to Section 2.2 of this Agreement or
Additional Piggyback Rights, based on the aggregate number of Registrable

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Securities and Piggyback Shares then owned by each holder requesting inclusion in relation to
the aggregate number of Registrable Securities and Piggyback Shares owned by all holders requesting
inclusion, up to the Section 2.3(d) Sale Number.

          2.4. Registration Procedures. If and whenever the Company is required by the
provisions of this Agreement to use its commercially reasonable efforts to effect or cause the
registration of any Registrable Securities under the Securities Act as provided in this Agreement,
the Company shall, as expeditiously as possible:

               (a) prepare and file with the SEC a registration statement on an appropriate registration form
of the SEC for the disposition of such Registrable Securities in accordance with the intended
method of disposition thereof, which form shall be selected by the Company and shall comply as to
form in all material respects with the requirements of the applicable form and include all
financial statements required by the SEC to be filed therewith, and the Company shall use its
commercially reasonable efforts to cause such registration statement to become and remain effective
(provided, however, that before filing a registration statement or prospectus or any amendments or
supplements thereto, or comparable statements under securities or blue sky laws of any
jurisdiction, or any free writing prospectus related thereto, the Company will furnish to one
counsel for the Holders participating in the planned offering (selected by the Majority
Participating Holders, in the case of a registration pursuant to Section 2.1, and selected by the
lead managing underwriter, in the case of a registration pursuant to Section 2.2) and the lead
managing underwriter, if any, copies of all such documents proposed to be filed (including all
exhibits thereto), which documents will be subject to the reasonable review and reasonable comment
of such counsel, and the Company shall not file any registration statement or amendment thereto,
any prospectus or supplement thereto or any free writing prospectus related thereto to which the
holders of a majority of the Registrable Securities covered by such registration statement or the
underwriters, if any, shall reasonably object);

               (b) prepare and file with the SEC such amendments and supplements to such registration
statement and the prospectus used in connection therewith as may be necessary to keep such
registration statement effective for such period as any seller of Registrable Securities pursuant
to such registration statement shall request and to comply with the provisions of the Securities
Act with respect to the sale or other disposition of all Registrable Securities covered by such
registration statement in accordance with the intended methods of disposition by the seller or
sellers thereof set forth in such registration statement;

               (c) furnish, without charge, to each seller of such Registrable Securities and each
underwriter, if any, of the securities covered by such registration statement such number of copies
of such registration statement, each amendment and supplement thereto (in each case including all
exhibits), the prospectus included in such registration statement (including each preliminary
prospectus) in conformity with the requirements of the Securities Act, each free writing prospectus
utilized in connection therewith, and other documents, as such seller and underwriter may
reasonably request in order to facilitate the public sale or other disposition of the Registrable
Securities owned by such seller (the Company hereby consenting to the use in accordance with all
applicable law of each such registration statement (or amendment or post-effective amendment
thereto) and each such prospectus (or preliminary prospectus or supplement thereto) or free writing
prospectus by each such seller of Registrable

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Securities and the underwriters, if any, in connection with the offering and sale of the
Registrable Securities covered by such registration statement or prospectus);

               (d) use its commercially reasonable efforts to register or qualify the Registrable Securities
covered by such registration statement under such other securities or “blue sky” laws of such
jurisdictions as any sellers of Registrable Securities or any managing underwriter, if any, shall
reasonably request in writing, and do any and all other acts and things which may be reasonably
necessary or advisable to enable such sellers or underwriter, if any, to consummate the disposition
of the Registrable Securities in such jurisdictions, except that in no event shall the Company be
required to qualify to do business as a foreign corporation in any jurisdiction where it would not,
but for the requirements of this paragraph (d), be required to be so qualified, to subject itself
to taxation in any such jurisdiction or to consent to general service of process in any such
jurisdiction;

               (e) promptly notify each Holder selling Registrable Securities covered by such registration
statement and each managing underwriter, if any: (i) when the registration statement, any
pre-effective amendment, the prospectus or any prospectus supplement related thereto, any
post-effective amendment to the registration statement or any free writing prospectus has been
filed and, with respect to the registration statement or any post-effective amendment, when the
same has become effective; (ii) of any request by the SEC or state securities authority for
amendments or supplements to the registration statement or the prospectus related thereto or for
additional information; (iii) of the issuance by the SEC of any stop order suspending the
effectiveness of the registration statement or the initiation of any proceedings for that purpose;
(iv) of the receipt by the Company of any notification with respect to the suspension of the
qualification of any Registrable Securities for sale under the securities or blue sky laws of any
jurisdiction or the initiation of any proceeding for such purpose; (v) of the existence of any fact
of which the Company becomes aware which results in the registration statement, the prospectus
related thereto, any document incorporated therein by reference, any free writing prospectus or the
information conveyed to any purchaser at the time of sale to such purchaser containing an untrue
statement of a material fact or omitting to state a material fact required to be stated therein or
necessary to make any statement therein not misleading; and (vi) if at any time the representations
and warranties contemplated by any underwriting agreement, securities sale agreement, or other
similar agreement, relating to the offering shall cease to be true and correct in all material
respects; and, if the notification relates to an event described in clause (v), the Company shall
promptly prepare and furnish to each such seller and each underwriter, if any, a reasonable number
of copies of a prospectus supplemented or amended so that, as thereafter delivered to the
purchasers of such Registrable Securities, such prospectus shall not include an untrue statement of
a material fact or omit to state a material fact required to be stated therein or necessary to make
the statements therein in the light of the circumstances under which they were made not misleading;

               (f) comply with all applicable rules and regulations of the SEC, and make generally available
to its security holders, as soon as reasonably practicable after the effective date of the
registration statement (and in any event within 90 days after the end of such twelve month period
described hereafter), an earnings statement (which need not be audited) covering the period of at
least twelve consecutive months beginning with the first day of the Company’s first calendar
quarter after the effective date of the registration statement, which

10

 

earnings statement shall satisfy the provisions of Section 11(a) of the Securities Act and
Rule 158 thereunder;

               (g) (i) cause all such Registrable Securities covered by such registration statement to be
listed on the New York Stock Exchange or the principal securities exchange on which similar
securities issued by the Company are then listed (if any), if the listing of such Registrable
Securities is then permitted under the rules of such exchange, or (ii) if no similar securities are
then so listed, to either cause all such Registrable Securities to be listed on a national
securities exchange or to secure designation of all such Registrable Securities as a Nasdaq
National Market “national market system security” within the meaning of Rule 11Aa2-1 of the
Exchange Act or, failing that, secure Nasdaq National Market authorization for such shares and,
without limiting the generality of the foregoing, take all actions that may be required by the
Company as the issuer of such Registrable Securities in order to facilitate the managing
underwriter’s arranging for the registration of at least two market makers as such with respect to
such shares with the National Association of Securities Dealers, Inc. (the “NASD”);

               (h) provide and cause to be maintained a transfer agent and registrar for all such Registrable
Securities covered by such registration statement not later than the effective date of such
registration statement;

               (i) enter into such customary agreements (including, if applicable, an underwriting agreement)
and take such other actions as the holders of a majority of the Registrable Securities
participating in such offering shall reasonably request in order to expedite or facilitate the
disposition of such Registrable Securities (it being understood that the Holders of the Registrable
Securities which are to be distributed by any underwriters shall be parties to any such
underwriting agreement and may, at their option, require that the Company make to and for the
benefit of such Holders the representations, warranties and covenants of the Company which are
being made to and for the benefit of such underwriters);

               (j) use its commercially reasonable efforts to obtain an opinion from the Company’s counsel
and a “cold comfort” letter from the Company’s independent public accountants in customary form and
covering such matters as are customarily covered by such opinions and “cold comfort” letters
delivered to underwriters in underwritten public offerings, which opinion and letter shall be
reasonably satisfactory to the underwriter, if any, and furnish to each Holder participating in the
offering and to each underwriter, if any, a copy of such opinion and letter addressed to such
Holder or underwriter;

               (k) deliver promptly to each Holder participating in the offering and each underwriter, if
any, copies of all correspondence between the SEC and the Company, its counsel or auditors and all
memoranda relating to discussions with the SEC or its staff with respect to the registration
statement, other than those portions of any such memoranda which contain information subject to
attorney-client privilege with respect to the Company, and, upon receipt of such confidentiality
agreements as the Company may reasonably request, make reasonably available for inspection by any
seller of such Registrable Securities covered by such registration statement, by any underwriter,
if any, participating in any disposition to be effected pursuant to such registration statement and
by any attorney, accountant or other agent retained by any such seller or any such underwriter, all
pertinent financial and other records, pertinent

11

 

corporate documents and properties of the Company, and cause all of the Company’s officers,
directors and employees to supply all information reasonably requested by any such seller,
underwriter, attorney, accountant or agent in connection with such registration statement;

               (l) use its commercially reasonable efforts to obtain the withdrawal of any order suspending
the effectiveness of the registration statement;

               (m) provide a CUSIP number for all Registrable Securities, not later than the effective date
of the registration statement;

               (n) make reasonably available its employees and personnel for participation in “road shows”
and other marketing efforts and otherwise provide reasonable assistance to the underwriters (taking
into account the needs of the Company’s businesses and the requirements of the marketing process)
in the marketing of Registrable Securities in any underwritten offering;

               (o) promptly prior to the filing of any document which is to be incorporated by reference into
the registration statement or the prospectus (after the initial filing of such registration
statement), and prior to the filing of any free writing prospectus, provide copies of such document
to counsel for the selling holders of Registrable Securities and to each managing underwriter, if
any, and make the Company’s representatives reasonably available for discussion of such document
and make such changes in such document concerning the selling holders prior to the filing thereof
as counsel for such selling holders or underwriters may reasonably request;

               (p) furnish to the Holder participating in the offering and the managing underwriter, without
charge, at least one signed copy, and to each other Holder participating in the offering, without
charge, at least one photocopy of a signed copy, of the registration statement and any
post-effective amendments thereto, including financial statements and schedules, all documents
incorporated therein by reference, all exhibits (including those incorporated by reference) and any
free writing prospectus utilized in connection therewith;

               (q) cooperate with the sellers of Registrable Securities and the managing underwriter, if any,
to facilitate the timely preparation and delivery of certificates not bearing any restrictive
legends representing the Registrable Securities to be sold, and cause such Registrable Securities
to be issued in such denominations and registered in such names in accordance with the underwriting
agreement prior to any sale of Registrable Securities to the underwriters or, if not an
underwritten offering, in accordance with the instructions of the sellers of Registrable Securities
at least three business days prior to any sale of Registrable Securities and instruct any transfer
agent and registrar of Registrable Securities to release any stop transfer orders in respect
thereof;

               (r) take all such other commercially reasonable actions as are necessary or advisable in order
to expedite or facilitate the disposition of such Registrable Securities;

               (s) take no direct or indirect action prohibited by Regulation M under the Exchange Act;
provided, however, that to the extent that any prohibition is applicable to the

12

 

Company, the Company will take such action as is necessary to make any such prohibition
inapplicable;

               (t) take all reasonable action to ensure that any free writing prospectus utilized in
connection with any registration covered by Section 2.1 or 2.2 complies in all material respects
with the Securities Act, is filed in accordance with the Securities Act to the extent required
thereby, is retained in accordance with the Securities Act to the extent required thereby and, when
taken together with the related prospectus, will not contain any untrue statement of a material
fact or omit to state a material fact necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading; and

               (u) in connection with any underwritten offering, if at any time the information conveyed to a
purchaser at the time of sale includes any untrue statement of a material fact or omits to state
any material fact necessary in order to make the statements therein, in light of the circumstances
under which they were made, not misleading, promptly file with the SEC such amendments or
supplements to such information as may be necessary so that the statements as so amended or
supplemented will not, in light of the circumstances, be misleading.

          To the extent the Company is a well-known seasoned issuer (as defined in Rule 405 under the
Securities Act) (a “WKSI”) at the time any Demand Registration Request is submitted to the
Company, and such Demand Registration Request requests that the Company file an automatic shelf
registration statement (as defined in Rule 405 under the Securities Act) (an “automatic shelf
registration statement”) on Form S-3, the Company shall file an automatic shelf registration
statement which covers those Registrable Securities which are requested to be registered. The
Company shall use its commercially reasonable efforts to remain a WKSI (and not become an
ineligible issuer (as defined in Rule 405 under the Securities Act)) during the period during which
such automatic shelf registration statement is required to remain effective. If the Company does
not pay the filing fee covering the Registrable Securities at the time the automatic shelf
registration statement is filed, the Company agrees to pay such fee at such time or times as the
Registrable Securities are to be sold. If the automatic shelf registration statement has been
outstanding for at least three years, at the end of the third year the Company shall refile a new
automatic shelf registration statement covering the Registrable Securities. If at any time when
the Company is required to re-evaluate its WKSI status the Company determines that it is not a
WKSI, the Company shall use its commercially reasonable efforts to refile the shelf registration
statement on Form S-3 and, if such form is not available, Form S-1 and keep such registration
statement effective during the period during which such registration statement is required to be
kept effective.

          If the Company files any shelf registration statement for the benefit of the holders of any of
its securities other than the Holders, the Company agrees that it shall include in such
registration statement such disclosures as may be required by Rule 430B (referring to the unnamed
selling security holders in a generic manner by identifying the initial offering of the securities
to the Holders) in order to ensure that the Holders may be added to such shelf registration
statement at a later time through the filing of a prospectus supplement rather than a
post-effective amendment.

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          The Company may require as a condition precedent to the Company’s obligations under this
Section 2.4 that each seller of Registrable Securities as to which any registration is being
effected furnish the Company such information in writing regarding such seller and the distribution
of such Registrable Securities as the Company may from time to time reasonably request provided
that such information is necessary for the Company to consummate such registration and shall be
used only in connection with such registration.

          Each seller of Registrable Securities agrees that upon receipt of any notice from the Company
of the happening of any event of the kind described in clause (v) of paragraph (e) of this Section
2.4, such seller will discontinue such seller’s disposition of Registrable Securities pursuant to
the registration statement covering such Registrable Securities until such seller’s receipt of the
copies of the supplemented or amended prospectus contemplated by paragraph (e) of this Section 2.4
and, if so directed by the Company, will deliver to the Company (at the Company’s expense) all
copies, other than permanent file copies, then in such seller’s possession of the prospectus
covering such Registrable Securities that was in effect at the time of receipt of such notice. In
the event the Company shall give any such notice, the applicable period mentioned in paragraph (b)
of this Section 2.4 shall be extended by the number of days during such period from and including
the date of the giving of such notice to and including the date when each seller of any Registrable
Securities covered by such registration statement shall have received the copies of the
supplemented or amended prospectus contemplated by paragraph (e) of this Section 2.4.

          If any such registration statement or comparable statement under “blue sky” laws refers to any
Holder by name or otherwise as the Holder of any securities of the Company, then such Holder shall
have the right to require (i) the insertion therein of language, in form and substance reasonably
satisfactory to such Holder and the Company, to the effect that the holding by such Holder of such
securities is not to be construed as a recommendation by such Holder of the investment quality of
the Company’s securities covered thereby and that such holding does not imply that such Holder will
assist in meeting any future financial requirements of the Company, or (ii) in the event that such
reference to such Holder by name or otherwise is not in the judgment of the Company, as advised by
counsel, required by the Securities Act or any similar federal statute or any state “blue sky” or
securities law then in force, the deletion of the reference to such Holder.

          2.5. Registration Expenses.

               (a) The Company shall pay all Expenses (x) with respect to any Demand Registration whether or
not it becomes effective or remains effective for the period contemplated by Section 2.4(b) and (y)
with respect to any registration effected under Section 2.2.

               (b) Notwithstanding the foregoing, (x) the provisions of this Section 2.5 shall be deemed
amended to the extent necessary to cause these expense provisions to comply with “blue sky” laws of
each state in which the offering is made and (y) in connection with any registration hereunder,
each Holder of Registrable Securities being registered shall pay all underwriting discounts and
commissions and any transfer taxes, if any, attributable to the sale of such Registrable
Securities, pro rata with respect to payments of discounts and commissions

14

 

in accordance with the number of shares sold in the offering by such Holder, and (z) the
Company shall, in the case of all registrations under this Article 2, be responsible for all its
internal expenses (including, without limitation, all salaries and expenses of its officers and
employees performing legal or accounting duties).

          2.6. Certain Limitations on Registration Rights. In the case of any registration
under Section 2.1 pursuant to an underwritten offering, or, in the case of a registration under
Section 2.2, if the Company has determined to enter into an underwriting agreement in connection
therewith, all securities to be included in such registration shall be subject to an underwriting
agreement and no Person may participate in such registration unless such Person agrees to sell such
Person’s securities on the basis provided therein and, subject to Section 3.1 hereof, completes and
executes all reasonable questionnaires, and other documents (including custody agreements and
powers of attorney) which must be executed in connection therewith, and provides such other
information to the Company or the underwriter as may be necessary to register such Person’s
securities.

          2.7. Limitations on Sale or Distribution of Other Securities. (a) Each seller of
Registrable Securities agrees, (i) to the extent requested in writing by a managing underwriter, if
any, of any registration effected pursuant to Section 2.1, not to sell, transfer or otherwise
dispose of, including any sale pursuant to Rule 144 under the Securities Act, any Common Stock, or
any other equity security of the Company or any security convertible into or exchangeable or
exercisable for any equity security of the Company (other than (x) as part of such underwritten
public offering or (y) in the case of the Notes or Warrants, to the extent the purchaser thereof
agrees to be bound by a lockup with respect to the Common Stock on the same terms as contained in
any applicable underwriting agreement) during the time period reasonably requested by the managing
underwriter, not to exceed 180 days (and the Company hereby also so agrees (except that the Company
may effect any sale or distribution of any such securities pursuant to a registration on Form S-4
(if reasonably acceptable to such managing underwriter) or Form S-8, or any successor or similar
form which is then in effect or upon the conversion, exchange or exercise of any then outstanding
Common Stock Equivalent) to use its commercially reasonable efforts to cause each holder of any
equity security or any security convertible into or exchangeable or exercisable for any equity
security of the Company purchased from the Company at any time other than in a public offering so
to agree), and (ii) to the extent requested in writing by a managing underwriter of any
underwritten public offering effected by the Company for its own account, not sell any Common Stock
(other than (x) as part of such underwritten public offering or (y) in the case of the Notes or
Warrants, to the extent the purchaser thereof agrees to be bound by a lockup with respect to the
Common Stock on the same terms as contained in any applicable underwriting agreement) during the
time period reasonably requested by the managing underwriter, which period shall not exceed 180
days.

               (b) The Company hereby agrees that, if it shall previously have received a request for
registration pursuant to Section 2.1 or 2.2, and if such previous registration shall not have been
withdrawn or abandoned, the Company shall not sell, transfer, or otherwise dispose of, any Common
Stock, or any other equity security of the Company or any security convertible into or exchangeable
or exercisable for any equity security of the Company (other than as part of such underwritten
public offering, a registration on Form S-4 or Form S-8 or any successor or similar form which is
then in effect or upon the conversion, exchange or exercise of

15

 

any then outstanding Common Stock Equivalent), until a period of 90 days shall have elapsed
from the effective date of such previous registration; and the Company shall so provide in any
registration rights agreements hereafter entered into with respect to any of its securities.

          2.8. No Required Sale. Nothing in this Agreement shall be deemed to create an
independent obligation on the part of any Holder to sell any Registrable Securities pursuant to any
effective registration statement.

          2.9. Indemnification. (a) In the event of any registration of any securities of the
Company under the Securities Act pursuant to this Article 2, the Company will, and hereby agrees
to, indemnify and hold harmless, to the fullest extent permitted by law, each Holder of Registrable
Securities, its directors, officers, fiduciaries, employees, stockholders, members or general and
limited partners (and the directors, officers, employees and stockholders thereof), and each other
Person, if any, who controls such Holder within the meaning of the Securities Act, from and against
any and all losses, claims, damages or liabilities, joint or several, actions or proceedings
(whether commenced or threatened) and expenses (including reasonable fees of counsel and any
amounts paid in any settlement effected with the Company’s consent, which consent shall not be
unreasonably withheld or delayed) to which each such indemnified party may become subject under the
Securities Act or otherwise in respect thereof (collectively, “Claims”), insofar as such
Claims arise out of or are based upon (i) any untrue statement or alleged untrue statement of a
material fact contained in any registration statement under which such securities were registered
under the Securities Act or the omission or alleged omission to state therein a material fact
required to be stated therein or necessary to make the statements therein not misleading, (ii) any
untrue statement or alleged untrue statement of a material fact contained in any preliminary, final
or summary prospectus or any amendment or supplement thereto, together with the documents
incorporated by reference therein, or any free writing prospectus utilized in connection therewith,
or the omission or alleged omission to state therein a material fact required to be stated therein
or necessary in order to make the statements therein, in the light of the circumstances under which
they were made, not misleading, (iii) any untrue statement or alleged untrue statement of a
material fact in the information conveyed to any purchaser at the time of the sale to such
purchaser, or the omission or alleged omission to state therein a material fact required to be
stated therein, or (iv) any violation by the Company of any federal, state or common law rule or
regulation applicable to the Company and relating to action required of or inaction by the Company
in connection with any such registration, and the Company will reimburse any such indemnified party
for any legal or other expenses reasonably incurred by such indemnified party in connection with
investigating or defending any such Claim as such expenses are incurred; provided, however, that
the Company shall not be liable to any such indemnified party in any such case to the extent such
Claim arises out of or is based upon any untrue statement or alleged untrue statement of a material
fact or omission or alleged omission of a material fact made in such registration statement or
amendment thereof or supplement thereto or in any such prospectus or any preliminary, final or
summary prospectus or free writing prospectus in reliance upon and in conformity with written
information furnished to the Company by or on behalf of such indemnified party specifically for use
therein. Such indemnity and reimbursement of expenses shall remain in full force and effect
regardless of any investigation made by or on behalf of such indemnified party and shall survive
the transfer of such securities by such Holder.

16

 

               (b) Each Holder of Registrable Securities that are included in the securities as to which any
registration under Section 2.1 or 2.2 is being effected shall, severally and not jointly, indemnify
and hold harmless (in the same manner and to the same extent as set forth in paragraph (a) of this
Section 2.9) to the extent permitted by law the Company, its officers and directors, each Person
controlling the Company within the meaning of the Securities Act and all other prospective sellers
and their respective directors, officers, fiduciaries, managing directors, employees, agents,
affiliates, consultants, representatives, successors, assigns, general and limited partners,
stockholders and respective controlling Persons with respect to any untrue statement or alleged
untrue statement of any material fact in, or omission or alleged omission of any material fact
from, such registration statement, any preliminary, final or summary prospectus contained therein,
or any amendment or supplement thereto, or any free writing prospectus utilized in connection
therewith, if such statement or alleged statement or omission or alleged omission was made in
reliance upon and in conformity with written information furnished to the Company or its
representatives by or on behalf of such Holder specifically for use therein and reimburse such
indemnified party for any legal or other expenses reasonably incurred in connection with
investigating or defending any such Claim as such expenses are incurred; provided, however, that
the aggregate amount which any such Holder shall be required to pay pursuant to this Section 2.9(b)
and Sections 2.9(c), (e) and (f) shall in no case be greater than the amount of the net proceeds
received by such Holder upon the sale of the Registrable Securities pursuant to the registration
statement giving rise to such claim. Such indemnity and reimbursement of expenses shall remain in
full force and effect regardless of any investigation made by or on behalf of such indemnified
party and shall survive the transfer of such securities by such Holder.

               (c) Indemnification similar to that specified in the preceding paragraphs (a) and (b) of this
Section 2.9 (with appropriate modifications) shall be given by the Company and each seller of
Registrable Securities with respect to any required registration or other qualification of
securities under any state securities and “blue sky” laws.

               (d) Any Person entitled to indemnification under this Agreement shall notify promptly the
indemnifying party in writing of the commencement of any action or proceeding with respect to which
a claim for indemnification may be made pursuant to this Section 2.9, but the failure of any such
Person to provide such notice shall not relieve the indemnifying party of its obligations under the
preceding paragraphs of this Section 2.9, except to the extent the indemnifying party is materially
prejudiced thereby and shall not relieve the indemnifying party from any liability which it may
have to any such Person otherwise than under this Article 2. In case any action or proceeding is
brought against an indemnified party and it shall notify the indemnifying party of the commencement
thereof, the indemnifying party shall be entitled to participate therein and, unless in the
reasonable opinion of outside counsel to the indemnified party a conflict of interest between such
indemnified and indemnifying parties may exist in respect of such claim, to assume the defense
thereof jointly with any other indemnifying party similarly notified, to the extent that it
chooses, with counsel reasonably satisfactory to such indemnified party, and after notice from the
indemnifying party to such indemnified party that it so chooses, the indemnifying party shall not
be liable to such indemnified party for any legal or other expenses subsequently incurred by such
indemnified party in connection with the defense thereof other than reasonable costs of
investigation; provided, however, that (i) if the indemnifying party fails to take reasonable steps
necessary to defend diligently the action or

17

 

proceeding within 20 days after receiving notice from such indemnified party; or (ii) if such
indemnified party who is a defendant in any action or proceeding which is also brought against the
indemnifying party reasonably shall have concluded that there may be one or more legal defenses
available to such indemnified party which are not available to the indemnifying party; or (iii) if
representation of both parties by the same counsel is otherwise inappropriate under applicable
standards of professional conduct, then, in any such case, the indemnified party shall have the
right to assume or continue its own defense as set forth above (but with no more than one firm of
counsel for all indemnified parties in each jurisdiction, except to the extent any indemnified
party or parties reasonably shall have concluded that there may be legal defenses available to such
party or parties which are not available to the other indemnified parties or to the extent
representation of all indemnified parties by the same counsel is otherwise inappropriate under
applicable standards of professional conduct) and the indemnifying party shall be liable for any
expenses therefor. No indemnifying party shall, without the written consent of the indemnified
party, which consent shall not be unreasonably withheld, effect the settlement or compromise of, or
consent to the entry of any judgment with respect to, any pending or threatened action or claim in
respect of which indemnification or contribution may be sought hereunder (whether or not the
indemnified party is an actual or potential party to such action or claim) unless such settlement,
compromise or judgment (A) includes an unconditional release of the indemnified party from all
liability arising out of such action or claim and (B) does not include a statement as to or an
admission of fault, culpability or a failure to act, by or on behalf of any indemnified party.

               (e) If for any reason the foregoing indemnity is unavailable or is insufficient to hold
harmless an indemnified party under Sections 2.9(a), (b) or (c), then each indemnifying party shall
contribute to the amount paid or payable by such indemnified party as a result of any Claim in such
proportion as is appropriate to reflect the relative fault of the indemnifying party, on the one
hand, and the indemnified party, on the other hand, with respect to such offering of securities.
The relative fault shall be determined by reference to, among other things, whether the untrue or
alleged untrue statement of a material fact or the omission or alleged omission to state a material
fact relates to information supplied by the indemnifying party or the indemnified party and the
parties’ relative intent, knowledge, access to information and opportunity to correct or prevent
such untrue statement or omission. If, however, the allocation provided in the second preceding
sentence is not permitted by applicable law, then each indemnifying party shall contribute to the
amount paid or payable by such indemnified party in such proportion as is appropriate to reflect
not only such relative faults but also the relative benefits of the indemnifying party and the
indemnified party as well as any other relevant equitable considerations. The parties hereto agree
that it would not be just and equitable if contributions pursuant to this Section 2.9(e) were to be
determined by pro rata allocation or by any other method of allocation which does not take account
of the equitable considerations referred to in the preceding sentences of this Section 2.9(e). The
amount paid or payable in respect of any Claim shall be deemed to include any legal or other
expenses reasonably incurred by such indemnified party in connection with investigating or
defending any such Claim. No Person guilty of fraudulent misrepresentation (within the meaning of
section 11(f) of the Securities Act) shall be entitled to contribution from any Person who was not
guilty of such fraudulent misrepresentation. Notwithstanding anything in this section 2.9(e) to
the contrary, no indemnifying party (other than the Company) shall be required pursuant to this
section 2.9(e) to contribute any amount in excess of the net proceeds received by such indemnifying
party from

18

 

the sale of Registrable Securities in the offering to which the losses, claims, damages or
liabilities of the indemnified parties relate, less the amount of any indemnification payment made
by such indemnifying party pursuant to Sections 2.9(b) and (c).

               (f) The indemnity and contribution agreements contained herein shall be in addition to any
other rights to indemnification or contribution which any indemnified party may have pursuant to
law or contract and shall remain operative and in full force and effect regardless of any
investigation made or omitted by or on behalf of any indemnified party and shall survive the
transfer of the Registrable Securities by any such party.

               (g) The indemnification and contribution required by this Section 2.9 shall be made by
periodic payments of the amount thereof during the course of the investigation or defense, as and
when bills are received or expense, loss, damage or liability is incurred.

     3. Underwritten Offerings.

          3.1. Requested Underwritten Offerings. If requested by the underwriters for any
underwritten offering by the Holders pursuant to a registration requested under Section 2.1, the
Company shall enter into a customary underwriting agreement with the underwriters. Such
underwriting agreement shall be satisfactory in form and substance to the Majority Participating
Holders and shall contain such representations and warranties by, and such other agreements on the
part of, the Company and such other terms as are generally prevailing in agreements of that type,
including, without limitation, indemnities and contribution agreements. Any Holder participating
in the offering shall be a party to such underwriting agreement and may, at its option, require
that any or all of the representations and warranties by, and the other agreements on the part of,
the Company to and for the benefit of such underwriters shall also be made to and for the benefit
of such Holder and that any or all of the conditions precedent to the obligations of such
underwriters under such underwriting agreement be conditions precedent to the obligations of such
Holder; provided, however, that the Company shall not be required to make any representations or
warranties with respect to written information specifically provided by a selling Holder for
inclusion in the registration statement. Each such Holder shall not be required to make any
representations or warranties to or agreements with the Company or the underwriters other than
representations, warranties or agreements regarding such Holder, its ownership of and title to the
Registrable Securities, and its intended method of distribution; and any liability of such Holder
to any underwriter or other Person under such underwriting agreement shall be limited to liability
arising from breach of its representations and warranties and shall be limited to an amount equal
to the proceeds (net of expenses and underwriting discounts and commissions) that it derives from
such registration.

          3.2. Piggyback Underwritten Offerings. In the case of a registration pursuant to
Section 2.2 hereof, if the Company shall have determined to enter into an underwriting agreement in
connection therewith, any Registrable Securities to be included in such registration shall be
subject to such underwriting agreement. Any Holder participating in such registration may, at its
option, require that any or all of the representations and warranties by, and the other agreements
on the part of, the Company to and for the benefit of such underwriters shall also be made to and
for the benefit of such Holder and that any or all of the conditions precedent to the obligations
of such underwriters under such underwriting agreement be conditions precedent to

19

 

the obligations of such Holder. Each such Holder shall not be required to make any
representations or warranties to or agreements with the Company or the underwriters other than
representations, warranties or agreements regarding such Holder, its ownership of and title to the
Registrable Securities, and its intended method of distribution; and any liability of such Holder
to any underwriter or other Person under such underwriting agreement shall be limited to liability
arising from breach of its representations and warranties and shall be limited to an amount equal
to the proceeds (net of expenses and underwriting discounts and commissions) that it derives from
such registration.

     4. General.

          4.1. Adjustments Affecting Registrable Securities. The Company agrees that it shall
not effect or permit to occur any combination or subdivision of shares of Common Stock which would
adversely affect the ability of any Holder of any Registrable Securities to include such
Registrable Securities in any registration contemplated by this Agreement or the marketability of
such Registrable Securities in any such registration. The Company agrees that it will take all
reasonable steps necessary to effect a subdivision of shares if in the reasonable judgment of (a)
the Majority Participating Holders or (b) the managing underwriter for the offering in respect of
such Demand Registration Request, such subdivision would enhance the marketability of the
Registrable Securities. Each Holder agrees to vote all of its shares of capital stock in a manner,
and to take all other actions necessary, to permit the Company to carry out the intent of the
preceding sentence including, without limitation, voting in favor of an amendment to the Company’s
Certificate of Incorporation in order to increase the number of authorized shares of capital stock
of the Company.

          4.2. Rule 144. The Company covenants that (i) upon such time as it becomes, and so
long as it remains, subject to the reporting provisions of the Exchange Act, it will timely file
the reports required to be filed by it under the Securities Act or the Exchange Act (including, but
not limited to, the reports under Sections 13 and 15(d) of the Exchange Act referred to in
subparagraph (c)(1) of Rule 144 under the Securities Act), and (ii) will take such further action
as any Holder of Registrable Securities may reasonably request, all to the extent required from
time to time to enable such Holder to sell Registrable Securities without registration under the
Securities Act within the limitation of the exemptions provided by (A) Rule 144 under the
Securities Act, as such Rule may be amended from time to time, or (B) any similar rule or
regulation hereafter adopted by the SEC. Upon the request of any Holder of Registrable Securities,
the Company will deliver to such Holder a written statement as to whether it has complied with such
requirements.

          4.3. Nominees for Beneficial Owners. If Registrable Securities are held by a nominee
for the beneficial owner thereof, the beneficial owner thereof may, at its option, be treated as
the Holder of such Registrable Securities for purposes of any request or other action by any Holder
or Holders of Registrable Securities pursuant to this Agreement (or any determination of any number
or percentage of shares constituting Registrable Securities held by any Holder or Holders of
Registrable Securities contemplated by this Agreement), provided that the Company shall have
received assurances reasonably satisfactory to it of such beneficial ownership.

20

 

          4.4. Amendments and Waivers. The terms and provisions of this Agreement may be
modified or amended, or any of the provisions hereof waived, temporarily or permanently, in a
writing executed and delivered by the Company and each of the Holders. No waiver of any of the
provisions of this Agreement shall be deemed to or shall constitute a waiver of any other provision
hereof (whether or not similar). No delay on the part of any party in exercising any right, power
or privilege hereunder shall operate as a waiver thereof.

          4.5. Notices. All notices, requests, claims, demands and other communications
required or permitted to be given hereunder will be in writing and will be given when delivered by
hand or sent by registered or certified mail (postage prepaid, return receipt requested) or by
overnight courier (providing proof of delivery) or by telecopy (providing confirmation of
transmission). All such notices, requests, claims, demands or other communications will be
addressed as follows:

	 	(a)	 	if to the Company, to:
	 
	 	 	 	First Solar Holdings, Inc.

4050 E. Cotton Center #6-68

Phoenix, Arizona 85040

Telephone No.: (602) 414-9300

Fax No.: (602) 414-9400

Attention: Chief Executive Officer
	 
	 	 	 	With a copy to:
	 
	 	 	 	Cravath, Swaine & Moore LLP

Worldwide Plaza

825 Eighth Avenue

New York, New York 10019

Telephone No.: (212) 474-1000

Fax No.: (212) 474-3700

Attention: John Gaffney, Esq.

                 Erik Tavzel, Esq.
	 
	 	(b)	 	if to GS, to:
	 
	 	 	 	The Goldman Sachs Group, Inc.

85 Broad Street

New York, New York 10004

Telephone No.: (212) 902-1000

Fax No.: (212) 902-3000

Attention: Alan S. Waxman

                 David Stiepleman
	 
	 	 	 	With a copy to:

21

 

	 	 	 	 Fried, Frank, Harris, Shriver & Jacobson

One New York Plaza

New York, New York 10004

Telephone No.: (212) 859-8000

Fax No.: (212) 859-4000

Attention: Paul M. Reinstein, Esq.

or such other address as the Company or GS shall have specified to the other party in writing in
accordance with this Section 4.5.

          4.6. Miscellaneous.

               (a) This Agreement shall be binding upon and inure to the benefit of and be enforceable by the
parties hereto and the respective successors, personal representatives and assigns of the parties
hereto, whether so expressed or not. If any Person shall acquire Registrable Securities from any
Holder, in any manner, whether by operation of law or otherwise, but in compliance with the
Purchase Agreement, Warrant Agreement or Equity Rights Agreement, as applicable, such Person shall
promptly notify the Company and such Registrable Securities acquired from such Holder shall be held
subject to all of the terms of this Agreement, and by taking and holding such Registrable
Securities such Person shall be entitled to receive the benefits of and be conclusively deemed to
have agreed to be bound by and to perform all of the terms and provisions of this Agreement. Any
such successor or assign shall agree in writing to acquire and hold the Registrable Securities
acquired from such Holder subject to all of the terms hereof. If any Holder shall acquire
additional Registrable Securities, such Registrable Securities shall be subject to all of the
terms, and entitled to all the benefits, of this Agreement.

               (b) This Agreement (with the documents referred to herein or delivered pursuant hereto),
together with the Purchase Agreement, Warrant Agreement and the Equity Rights Agreement, embodies
the entire agreement and understanding between the parties hereto and supersedes all prior
agreements.

               (c) THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE
STATE OF NEW YORK (WITHOUT GIVING EFFECT TO CONFLICT OF LAWS PRINCIPLES THEREOF).

               (d) With respect to any suit, action or proceeding (“Proceeding”) arising out of or
relating to this Agreement each of the parties hereto hereby irrevocably (i) submits to the
exclusive jurisdiction of the United States District Court for the Southern District of New York,
the United States District Court for the District of Delaware, or any state court located in the
State of Delaware, County of Newcastle (the “Selected Courts”) and waives any objection to
venue being laid in the Selected Courts whether based on the grounds of forum non conveniens or
otherwise and hereby agrees not to commence any such Proceeding other than before one of the
Selected Courts; provided, however, that a party may commence any Proceeding in a court other than
a Selected Court solely for the purpose of enforcing an order or judgment issued by one of the
Selected Courts and (ii) consents to service of process in any Proceeding by the mailing of copies
thereof by registered or certified mail, postage prepaid, or

22

 

by recognized international express carrier or delivery service, to the Company or GS at their
respective addresses referred to in Section 4.5 hereof; provided, however, that nothing herein
shall affect the right of any party hereto to serve process in any other manner permitted by law.

               (e) WITH RESPECT TO ANY PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT EACH OF THE
PARTIES HERETO HEREBY IRREVOCABLY, TO THE EXTENT NOT PROHIBITED BY APPLICABLE LAW THAT CANNOT BE
WAIVED, WAIVE, AND COVENANT THAT THEY WILL NOT ASSERT (WHETHER AS PLAINTIFF, DEFENDANT OR
OTHERWISE) ANY RIGHT TO TRIAL BY JURY IN ANY ACTION ARISING IN WHOLE OR IN PART UNDER OR IN
CONNECTION WITH THIS AGREEMENT OR ANY OF THE CONTEMPLATED TRANSACTIONS, WHETHER NOW EXISTING OR
HEREAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE, AND AGREE THAT ANY OF THEM
MAY FILE A COPY OF THIS PARAGRAPH WITH ANY COURT AS WRITTEN EVIDENCE OF THE KNOWING, VOLUNTARY AND
BARGAINED-FOR AGREEMENT AMONG THE PARTIES IRREVOCABLY TO WAIVE ITS RIGHT TO TRIAL BY JURY IN ANY
PROCEEDING WHATSOEVER BETWEEN THEM RELATING TO THIS AGREEMENT OR ANY OF THE CONTEMPLATED
TRANSACTIONS WILL INSTEAD BE TRIED IN A COURT OF COMPETENT JURISDICTION BY A JUDGE SITTING WITHOUT
A JURY.

               (f) The headings in this Agreement are for convenience of reference only and shall not limit
or otherwise affect the meaning hereof. All section references are to this Agreement unless
otherwise expressly provided.

               (g) This Agreement may be executed in any number of counterparts, each of which shall be an
original, but all of which together shall constitute one instrument.

               (h) Any term or provision of this Agreement which is invalid or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity or
unenforceability without rendering invalid or unenforceable the remaining terms and provisions of
this Agreement or affecting the validity or enforceability of any of the terms or provisions of
this Agreement in any other jurisdiction.

               (i) The parties hereto agree that irreparable damage would occur in the event that any of the
provisions of this Agreement were not performed in accordance with its specific terms or was
otherwise breached. It is accordingly agreed that the parties shall be entitled to an injunction
or injunctions and other equitable remedies to prevent breaches of this Agreement and to enforce
specifically the terms and provisions hereof in any of the Selected Courts, this being in addition
to any other remedy to which they are entitled at law or in equity. Any requirements for the
securing or posting of any bond with respect to such remedy are hereby waived by each of the
parties hereto. Each party further agrees that, in the event of any action for an injunction or
other equitable remedy in respect of such breach or enforcement of specific performance, it will
not assert the defense that a remedy at law would be adequate.

               (j) Each party hereto shall do and perform or cause to be done and performed all such further
acts and things and shall execute and deliver all such other

23

 

agreements, certificates, instruments, and documents as any other party hereto reasonably may
request in order to carry out the intent and accomplish the purposes of this Agreement and the
consummation of the transactions contemplated hereby.

          4.7. No Inconsistent Agreements. The rights granted to the Holders of Registrable
Securities hereunder do not in any way conflict with and are not inconsistent with any other
agreements to which the Company is a party or by which it is bound. Without the prior written
consent of Holders of a majority of the then outstanding Registrable Securities, the Company will
not, on or after the date of this Agreement, enter into any agreement with respect to its
securities which is inconsistent with the rights granted in this Agreement or otherwise conflicts
with the provisions hereof or provides terms and conditions which are more favorable to, or less
restrictive on, the other party thereto than the terms and conditions contained in this Agreement
are (insofar as they are applicable) to the Holders, other than any lock-up agreement with the
underwriters in connection with any registered offering effected hereunder, pursuant to which the
Company shall agree not to register for sale, and the Company shall agree not to sell or otherwise
dispose of, Common Stock or any securities convertible into or exercisable or exchangeable for
Common Stock, for a specified period following the registered offering. The Company further agrees
that if any other registration rights agreement entered into after the date of this Agreement with
respect to any of its securities contains terms which are more favorable to, or less restrictive
on, the other party thereto than the terms and conditions contained in this Agreement are (insofar
as they are applicable) to the Holders, then the terms and conditions of this Agreement shall
immediately be deemed to have been amended without further action by the Company or any of the
Holders of Registrable Securities so that the Holders shall each be entitled to the benefit of any
such more favorable or less restrictive terms or conditions.

24

 

          IN WITNESS WHEREOF, the parties hereto have duly executed this agreement as of the date first
above written.

	 	 	 	 	 
	FIRST SOLAR HOLDINGS, INC.	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	GOLDMAN, SACHS & CO.	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:EX-4.11

Table of Contents

Exhibit 4.11

[English Translation]

Facility Agreement

between

First Solar Manufacturing GmbH,

Frankfurt (Oder)

as “Borrower”

 

subject to the joint and several liability of

First Solar Holdings GmbH,

Mainz

and

First Solar GmbH

Mainz

and

IKB Deutsche Industriebank AG,

Düsseldorf

as “Bank”, “Agent” and “Security Agent”

 

Table of Contents

Table of Contents

	 	 	 	 	 	 	 	 	 
	RECITAL	 	 	1	 
	 	 	 	 	 
	 	 	 	 
	1.	 	Definitions
	 	 	7	 
	 	 	 	 	 
	 	 	 	 
	2.	 	Loans
	 	 	14	 
	 	 	 	 	 
	 	 	 	 
	3.	 	Purpose of the Loans
	 	 	15	 
	 	 	 	 	 
	 	 	 	 
	4.	 	Quotas of the Banks
	 	 	15	 
	 	 	 	 	 
	 	 	 	 
	5.	 	Drawdowns
	 	 	16	 
	 	 	 	 	 
	 	 	 	 
	6.	 	Termination and Loss of the Loan
	 	 	17	 
	 	 	 	 	 
	 	 	 	 
	7.	 	Interest
	 	 	17	 
	 	 	 	 	 
	 	 	 	 
	8.	 	Market Disruption
	 	 	18	 
	 	 	 	 	 
	 	 	 	 
	9.	 	Default Interest
	 	 	19	 
	 	 	 	 	 
	 	 	 	 
	10.	 	Repayment
	 	 	19	 
	 	 	 	 	 
	 	 	 	 
	11.	 	Voluntary Repayment
	 	 	19	 
	 	 	 	 	 
	 	 	 	 
	12.	 	New Drawdowns
	 	 	20	 
	 	 	 	 	 
	 	 	 	 
	13.	 	Accounts
	 	 	21	 
	 	 	 	 	 
	 	 	 	 
	14.	 	Payments of the “Borrower” and the “Banks”
	 	 	22	 
	 	 	 	 	 
	 	 	 	 
	15.	 	Changes in certain Bases of the Contract, Taxes
	 	 	23	 
	 	 	 	 	 
	 	 	 	 
	16.	 	Representations and Warranties
	 	 	25	 
	 	 	 	 	 
	 	 	 	 
	17.	 	Obligations to provide Information
	 	 	26	 
	 	 	 	 	 
	 	 	 	 
	18.	 	Key financial Numbers
	 	 	28	 
	 	 	 	 	 
	 	 	 	 
	19.	 	Covenants and Conditions
	 	 	29	 
	 	 	 	 	 
	 	 	 	 
	20.	 	Events of Default
	 	 	35	 
	 	 	 	 	 
	 	 	 	 
	21.	 	Agents and Banks
	 	 	37	 
	 	 	 	 	 
	 	 	 	 
	22.	 	Resignation and Removal of the “Agent”
	 	 	40	 
	 	 	 	 	 
	 	 	 	 
	23.	 	Sharing Clause
	 	 	40	 
	 	 	 	 	 
	 	 	 	 
	24.	 	Fees
	 	 	41	 
	 	 	 	 	 
	 	 	 	 
	 	25	 	 	Third Party Costs and Disbursements
	 	 	42	 
	 	 	 	 	 
	 	 	 	 
	26.	 	Substitute Performance
	 	 	42	 
	 	 	 	 	 
	 	 	 	 
	27.	 	Assignments and Transfers
	 	 	42	 
	 	 	 	 	 
	 	 	 	 
	28.	 	Confidentiality
	 	 	43	 
	 	 	 	 	 
	 	 	 	 

2

Table of Contents

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 
	29.	 	Rebuttable Presumptions
	 	 	44	 
	 	 	 	 	 
	 	 	 	 
	30.	 	Statements
pursuant to § 8 of the Money Laundering Act (Geldwäschegesetz)
	 	44
	 	 	 	 	 
	 	 	 	 
	31.	 	Requirement of Written Form, Amendments to the Facility Agreement
	 	 	44	 
	 	 	 	 	 
	 	 	 	 
	32.	 	Exercise of Rights, Severability Clause
	 	 	45	 
	 	 	 	 	 
	 	 	 	 
	33.	 	Rights of Set-Off and Retention
	 	 	45	 
	 	 	 	 	 
	 	 	 	 
	34.	 	Notices
	 	 	45	 
	 	 	 	 	 
	 	 	 	 
	35.	 	Jurisdiction, Applicable Law
	 	 	46	 
	 	 	 	 	 
	 	 	 	 
	36.	 	Provisions on Guarantors
	 	 	46	 

3

Table of Contents

List of Annexes

	 	 	 	 	 	 	 
	Annex	 	Title	 	Page
	 	 	 
	 	 	 	 
	1	 	Quotas of the Banks
	 	 	44	 
	 	 	 
	 	 	 	 
	2	 	Overview of Source of Funds / Use of Funds
	 	 	45	 
	 	 	 
	 	 	 	 
	3	 	Template Drawdown Request
	 	 	46	 
	 	 	 
	 	 	 	 
	4a	 	General Preconditions for Payout
	 	 	47	 
	 	 	 
	 	 	 	 
	4b	 	Special Preconditions for Payout for each Drawdown
	 	 	50	 
	 	 	 
	 	 	 	 
	5	 	Project Agreements
	 	 	51	 
	 	 	 
	 	 	 	 
	6a	 	Decision on the approval of deficiency guarantees
	 	 	52	 
	 	 	 
	 	 	 	 
	6b	 	General provisions for the assumption of guarantees by the
Federal Republic of Germany (the Bund) and parallel
guaranteeing states
	 	 	63	 
	 	 	 
	 	 	 	 
	7	 	Continuing Unconditional Guaranty
	 	 	70	 
	 	 	 
	 	 	 	 
	8	 	Schedule
	 	 	80	 
	 	 	 
	 	 	 	 
	9a	 	Sponsor’s Agreement FS Holdings
	 	 	82	 
	 	 	 
	 	 	 	 
	9b	 	Sponsor’s Agreement USA
	 	 	86	 
	 	 	 
	 	 	 	 
	10	 	Transfer Agreement
	 	 	94	 
	 	 	 
	 	 	 	 
	11	 	“Insurance Policies”
	 	 	98	 
	 	 	 
	 	 	 	 
	12	 	“Permits” for the Construction and Operation of the “Project”
	 	 	99	 
	 	 	 
	 	 	 	 
	13	 	Securities
	 	 	100	 
	 	 	 
	 	 	 	 
	14	 	Template Interest Determination Notice
	 	 	103	 
	 	 	 
	 	 	 	 
	15	 	Definitions of Key Financial Figures
	 	 	104	 
	 	 	 
	 	 	 	 
	16	 	Template Repayment Revolving Facility
	 	 	106	 
	 	 	 
	 	 	 	 
	17a	 	Contract for the pledge of the shares of the First Solar
Manufacturing GmbH
	 	 	107	 
	 	 	 
	 	 	 	 
	17b	 	Contract for the pledge of the shares of the First Solar
Holdings GmbH
	 	 	115	 
	 	 	 
	 	 	 	 
	17c	 	Contract for the pledge of the shares of the First Solar GmbH
	 	 	123	 
	 	 	 
	 	 	 	 
	18	 	Contract for the pledging of accounts
	 	 	130	 
	 	 	 
	 	 	 	 
	19	 	Security agreement for a land charge with the transfer of the
return warranty claim
	 	 	139	 
	 	 	 
	 	 	 	 
	20	 	Space Security Assignment Contract (Annexes)
	 	 	144	 
	 	 	 
	 	 	 	 
	21	 	Space Security Assignment Contract (Inventories and finished
goods)
	 	 	154	 
	 	 	 
	 	 	 	 
	22	 	Contract for the Assignment of Claims from Insurance Contracts
	 	 	163	 
	 	 	 
	 	 	 	 
	23a	 	Contract for the Assignment of Claims from Project Contracts
	 	 	208	 
	 	 	 
	 	 	 	 
	23b	 	Assignment agreement (Assignment, Pledge and Security
Agreement)
	 	 	218	 
	 	 	 
	 	 	 	 

4

Table of Contents

	 	 	 	 	 	 	 
	Annex	 	Title	 	Page
	 	 	 
	 	 	 	 
	24a	 	Agreement on the assignment of claims from take-off contracts
(Borrower)
	 	 	231	 
	 	 	 
	 	 	 	 
	24b	 	Agreement on the assignment of claims from take-off contracts
(FS GmbH)
	 	 	240	 
	 	 	 
	 	 	 	 
	25a	 	Obligation Agreement for the establishment of a cost exempt
and insolvency secure Return and Utilization or Disposal
Option for Solar Modules (First Solar Manufacturing GmbH und
First Solar Holding)
	 	 	250	 
	 	 	 
	 	 	 	 
	25b	 	Obligation Agreement for the establishment of a cost exempt
and insolvency secure Return and Utilization or Disposal
Option for Solar Modules (First Solar Inc.)
	 	 	253	 
	 	 	 
	 	 	 	 
	26a	 	Guarantee Agreement (Mr. Eichermüller)
	 	 	256	 
	 	 	 
	 	 	 	 
	26b	 	Guarantee Agreement (Stephan Hansen)
	 	 	261	 
	 	 	 
	 	 	 	 
	26c	 	Guarantee Agreement (Mike Ahearn)
	 	 	266	 
	 	 	 
	 	 	 	 
	27	 	Agreement on the right to accession contracts
	 	 	272	 
	 	 	 
	 	 	 	 
	28	 	Business Plan
	 	 	280	 

5

Table of Contents

Preamble

First Solar Inc., Phoenix, Arizona intends to construct and operate a production plant in
Frankfurt/Oder for the production of solar modules on the basis of cadmium-telluride having a
capacity of 100 MWp (hereinafter referred to as the “Project”) through First Solar Manufacturing
GmbH, Frankfurt (Oder): The shares in First Solar Manufacturing GmbH, Frankfurt (Oder) are held by
First Solar Inc., Phoenix, Arizona through First Solar Holdings GmbH, Mainz.

M+W Zander GmbH was retained as the general contractor for the construction of the buildings as
well as the infrastructure. Various suppliers will deliver and install the components for the
production lines pursuant to separate agreements.

The distribution of the solar modules is supposed to take place through First Solar GmbH, Mainz, a
100% subsidiary of First Solar Inc., Phoenix, Arizona on the basis of a distributor contract.

The projected total costs for the “Project” are EUR 117.7 million.

The third party capital will be provided to the First Solar Manufacturing GmbH, Frankfurt (Oder) by
a syndicate of banks under the lead arrangement of IKB Deutsche Industriebank AG pursuant to the
following terms and conditions.

The Federal Republic of Germany and the State of Brandenburg will secure 80% of the claims of the
banks in connection with the following described term loan and working capital loan by establishing
deficiency guarantees (Ausfallbürgschaften) for the benefit of the banks.

The subsidies contemplated for the Project were applied for in December 2005/January 2006 and
approved by the European Commission on 26 April 2006.

Now, therefore, on the basis of the instructions on the application for the Federal guarantees
including parallel state guarantees, the Parties agree as follows:

6

Table of Contents

	1.	 	Definitions

	1.1.	 	The following definitions apply to this Facility Agreement:
	 
	 	 	“Agreed Replacement and Expansion Investments” are the investments for placement in
expansion made by the “Borrower” up to the maximum amount foreseen in the “Business Plan”
for the respective business year, whereby the maximum amount is increased by the amounts
which were foreseen but not used for replacement and expansion investments in the “Business
Plan” for the respective previous business years;
	 
	 	 	“Off-Take Agreements” mean the following contracts:

	 	(a)	 	all supply agreements between the “Borrower” and the “FS GmbH”;
	 
	 	(b)	 	all take-off contracts and other contracts on the delivery and services
related to solar modules between the “Borrower” and third-party customers of solar
modules; and
	 
	 	(c)	 	all take-off contracts and other contracts on the delivery and services related
to solar modules between “FS GmbH” and third-party customers of solar modules;

	 	 	“End of the Construction Phase” means the point in time in which “Borrower” achieves a
nominal capacity with their production facility in the amount of 100 megawatts;
	 
	 	 	“Agent” means IKB Deutsche Industriebank Aktiengesellschaft, Düsseldorf;
	 
	 	 	“Old Bank” means a “Bank” which transfers its rights and obligations under the “Contract
Documents” completely or partially pursuant to Clause 27 (Assignments and Transfers) of
this Facility Agreement to a “New Bank”.
	 
	 	 	“Deficiency Guarantees” means the deficiency guarantees from the Federal Republic of
Germany (for 48 % of the total amount of the “Term Loan” and initially 48 % of the
“Revolver”) and the State of Brandenburg (for 32 % of the total amount of the “Term Loan”
and initially 32 % of the “Revolver”) in an amount totaling 80 % of the amount of the “Term
Loan” and the “Revolver” which, as is apparent from Annex 6a (“Decision on the approval of
the deficiency guarantees”), are issued for the benefit of the “Banks” with regard to the
Facility Agreement, including the “General Terms and Conditions for the Assumption of
Guarantees by the Federal Republic of Germany (the Bund) and Federal States issuing
Parallel Guarantees” in the form approved by the “EU Decision”
	 
	 	 	“Banking Day” means a day on which the credit institutions in Düsseldorf and Frankfurt am
Main are open for general business and which is a “TARGET Day”;
	 
	 	 	“Banks” means IKB Deutsche Industriebank AG, Düsseldorf, as well as any third parties
joining this Facility Agreement pursuant to Clause 27 as lenders;

7

Table of Contents

	 	 	“Majority of Banks” means the “Banks”, whose “Quotas” in each case of a made decision
account for at least 66 2/3% of all “Quotas”;
	 
	 	 	“Base Interest Rate” means the base interest rate as defined in § 247 German Civil Code
(Bürgerliches Gesetzbuch, “BGB”);
	 
	 	 	“Bridge Loan” means the bridge loan in the amount of EUR 22,000,000 pursuant to Clause 2.1;
	 
	 	 	“Guarantors” means the Federal Republic of Germany and the State of Brandenburg;
	 
	 	 	“Guarantee Amount”: means the amount as defined for the respective calendar year in clause
24.6;
	 
	 	 	“Business Plan” means the business plan of the “Borrower” contained in Annex 28 (Business
Plan) to this Facility Agreement;
	 
	 	 	“Cash Flow available for Debt Service” is defined in Annex 15 (Definition of Key Financial
Figures);
	 
	 	 	“Cash Flow Waterfall” means the following sequence of application of the “Cash from
Operations”:

	 	(1)	 	due tax payments of the “Borrower”;
	 
	 	(2)	 	interest payments and compensation for the “Loans”
	 
	 	(3)	 	interest payments and compensation for all other bank financing of
the “Borrower”;
	 
	 	(4)	 	repayment of principal on the “Loans”;
	 
	 	(5)	 	repayment of all other bank financing of the “Borrower”;
	 
	 	(6)	 	leasing expenses of the “Borrower”;
	 
	 	(7)	 	“Agreed Replacement and Expansion Investments”; and
	 
	 	(8)	 	“Royalty Payments”;

	 	 	“Cash Flow from Operations” is defined in Annex 15 (Definitions of Key Financial Figures);
	 
	 	 	“Threatening Event of Default” means any circumstance or event, which would with the expiry
of a grace period or giving of notice constitute an event of default;
	 
	 	 	“EBITDA” is defined in Annex 15 (Definitions of Key Financial Figures) to this Facility
Agreement;

8

Table of Contents

	 	 	“Equity” is defined in Annex 15 (Definitions of Key Financial Figures) to this Facility
Agreement;
	 
	 	 	“Equity Ratio” is defined in Annex 15 (Definitions of Key Financial Figures) to this
Facility Agreement;
	 
	 	 	“EPC Contractors” are M+W Zander as well as all suppliers who have concluded an equipment
supply agreement with the “Borrower” relating to the “Project”;
	 
	 	 	“EPC Agreements” are the General Contractor Agreement concluded between M+W Zander FE GmbH
and the Borrower on 13 December 2005 and 5 January 2006, the two contracts on the delivery
of technical installations concluded between VON ARDENNE Anlagentechnik GmbH and the
“Borrower”/“FS LLC” on 31 March 2006, the contract on the delivery of technical
installations concluded between Cincinnati Machine LLC and the “Borrower” on 16 February
2006 and the contract on the delivery of technical installations concluded between NPC
Corporation and the “Borrower” on 15 February 2006;
	 
	 	 	“EU Decision” means the decision of the EU Commission dated 26 April 2006 on the
“Deficiency Guarantees” and the “Investment Subsidies and Supports”;
	 
	 	 	“EURIBOR” means the interest rate published by Reuters on its screen service on page
EURIBOR 01 at or around 11:00 a.m. local time in Brussels on the “Interest Fixing Date” for
a period of time corresponding to the Interest Period following the “Interest Fixing Date”
or, if a fixing of interest is not possible in this manner, the interest rate determined by
the “Agent” on the basis of the quotations from the “Reference Banks” for loans with a
duration corresponding to the respective Interest Period on the relevant “Interest Fixing
Date” pursuant to Clause 7.7;
	 
	 	 	“Fee Letter” means the fee letter concluded between the “Borrower”, “FS GmbH”, “FS” and the
“Agent” before this Facility Agreement is concluded;
	 
	 	 	“Freely Disposable Net Assets” means the assets of a company (as described in Section 266
clause 2, A, B and C German Commercial Code (HGB)), minus (a) the liabilities (as described
in Section 266 clause 3, B, C and D German Commercial Code (HGB)) and (b) the share capital
of the company, whereby the following adjustments of the balance sheet items shall be made:

	 	(i)	 	the amount of any share capital increase made by the respective
company contrary to the obligations under the “Contract Documents” shall be
deducted from the share capital;
	 
	 	(ii)	 	loans or other liabilities assumed by the respective company
contrary to the obligations under the “Contract Documents” are to disregarded;
and
	 
	 	(iii)	 	assets whose book value is substantially lower than the market
value in the balance sheet shall be accounted for at their fair market value,
provided

9

Table of Contents

	 	 	 	that they are not necessary for the business operation and a sale of those
assets makes economic sense.

	 	 	“FS” means First Solar Inc., Phoenix, Arizona;
	 
	 	 	“FS GmbH” means First Solar GmbH, Mainz;
	 
	 	 	“FS Group” means “FS” and its “Subsidiaries”;
	 
	 	 	“FS Holdings” means First Solar Holdings GmbH, Mainz, a 100% subsidiary of “FS”;
	 
	 	 	“FS LLC” means First Solar US Manufacturing LLC., Perrysburg, Ohio, a 100% subsidiary of
“FS”;
	 
	 	 	“Shareholders” means “FS” and “FS Holdings”;
	 
	 	 	“Permits” means all public law permits, consents, licenses, authorizations and approvals
required for the construction and operation of the “Project”, listed in Annex 12 (Permits
for the Construction and Operation of the Project) except for the “Subsidy Order”, the
“Deficiency Guarantee” and the “EU Decision”;
	 
	 	 	“Total Liabilities” is defined in Annex 15 (Definitions of Key Financial Figures) to this
Facility Agreement;
	 
	 	 	“Investment Account” means the account No. 2011112 01 at the Commerzbank AG, Mainz (Bank
Code 550 400 22) to be established by the “Borrower” pursuant to Clause 13.2;
	 
	 	 	“Investment Subsidies” means the investment subsidies in the amount of EUR 23,756,000 to be
provided by the Federal Republic of Germany for the “Project” in accordance with the
Investment Subsidy Act (Investitionszulagengesetz) 2005;
	 
	 	 	“Investment Subsidies and Supports” means the investment subsidy granted and to be granted
under the “Subsidy Order” in the amount of EUR 21,531,000 and the investment support
provided and to be provided for the “Project” by the Federal Republic of Germany in
accordance with the Investment Subsidy Act (Investitionszulagengesetz) 2005 in the amount
of EUR 23,756,000;
	 
	 	 	“IP License Agreement”: is the contract to be concluded between the “Borrower” and “FS”
regarding the rights of use for all licenses, patents and other industrial property rights,
which are necessary for the “Project”;
	 
	 	 	“Loans” means the “Term Loan”, the “Bridge Loan” and the “Revolver”;
	 
	 	 	“Borrower”: is the First Solar Manufacturing GmbH, Mainz;
	 
	 	 	“Market Disruption Notice” means the notice by the “Agent” about an event within the
meaning of Clause 8 (Market Disruption);

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	 	 	“Maximum Distribution Margin”: is the maximum uniform distribution margin of 2%, which is
contained in the sale prices of the products sold by “FS GmbH” to end users from US and
German production;
	 
	 	 	“Maximum Commission Entitlement”: is the maximum commission entitlement of 2%, pertaining
to “FS GmbH” from the “Borrower” from the sale for its account;
	 
	 	 	“Excess Amount” is defined in Clause 23.1;
	 
	 	 	“CET” means central European time, and — when applicable — central European daylight
savings time;
	 
	 	 	“New Bank” means a bank which completely or partially assumes the rights and obligations of
an “Old Bank” under the Contract Documents pursuant to Clause 27 (Assignments and
Transfers);
	 
	 	 	“Project” is defined in the Preamble;
	 
	 	 	“Project Progress Report” means the report to be prepared by the “Project Appraiser”
pursuant to Clause 17.8 with regard to the progress of the “Project”, which especially
contains a comparison of the costs already incurred for the “Project” at the time of such
report to the costs for the “Project” foreseen in the “Business Plan” and the confirmation
that the “Project” has made the progress corresponding to the investments as of the
respective time, the “Project” has no delays compared to the “Schedule” and that all
“Permits” required as of that time have been granted;
	 
	 	 	“Project Appraiser” means the technical expert appointed by the “Agent” which at the time
of conclusion of this Facility Agreement is the firm Lahmeyer International GmbH, Bad
Vilbel;
	 
	 	 	“Project Account” is the project account no. 2011112 00 at the Commerzbank AG, Mainz (Bank
Code 550 400 22) to be established by the “Borrower” pursuant to Clause 13.1 of this
Facility Agreement;
	 
	 	 	“Project Contracts” means the contracts listed in Annex 5 (Project Contracts) to this
Facility Agreement;
	 
	 	 	“PWC” means PricewaterhouseCoopers Aktiengesellschaft Wirtschaftsprüfungsgesellschaft,
Lise-Meitner-Str. 1, 10589 Berlin having the mandate to act for the “Guarantors”;
	 
	 	 	“Quota” means the portion attributed to each “Bank” of the obligation to provide the Loan
or the amount, which is provided. The Quotas as of the signing of this Facility Agreement
are set forth in Annex 1 (Quotas);
	 
	 	 	“Reference Banks” means the Deutsche Bank AG, the Commerzbank AG and the Dresdner Bank AG;

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	 	 	“Reference Interest Rate” means “EURIBOR”;
	 
	 	 	“Revolvier” means the loan for working capital facility in the amount of EUR 27,000,000
pursuant to Clause 2.1 of this Facility Agreement;
	 
	 	 	“Debt Service Coverage Level” is defined in Annex 15 (Definitions of Key Financial
Figures);
	 
	 	 	“Debt Service Reserve” means an amount of EUR 3,000,000;
	 
	 	 	“Debt Service Reserve Account” is the account no. 2011112 04 at the Commerzbank AG, Mainz
(Bank Code 550 400 22) to be established in accordance with Clause 13.4 by the “Borrower” ;
	 
	 	 	“Security” means the security interests and other forms of security listed in Annex 13
(Security) as well as all future security agreed between the “Banks” and the “Borrowers”;
	 
	 	 	“Security Agent” means IKB Deutsche Industriebank AG;
	 
	 	 	“Security Agreements” means all declarations to be issued and all contracts to be concluded
in connection with the “Security”;
	 
	 	 	“Sponsors” means the “Shareholders” and “FS LLC”;
	 
	 	 	“Sponsors’ Agreements” means the “Sponsor’s Agreement FS Holdings” and the “Sponsor’s
Agreement USA”;
	 
	 	 	“Term Loan” means the term loan in the amount of EUR 53,044,000 pursuant to Clause 2.1;
	 
	 	 	“TARGET” means the Trans-European Automated Real-time Gross Settlement Express Transfer
payment system;
	 
	 	 	“TARGET Day” is every day on which “TARGET” is open for the processing of payments;
	 
	 	 	“Subsidiary” is any company which is directly or indirectly controlled by a person or with
regard to which a person directly or indirectly holds more than 50 % of the voting rights
or comparable rights, and “to control” for this purpose means the authority to instruct the
management and to determine the guidelines for business policy or, in the case of a German
stock company, to determine the members of the supervisory board appointed by the
shareholders, be it as the holder of voting rights or on the basis of a contract or
otherwise;
	 
	 	 	“Surplus Cash Flow” is defined in Annex 15 (Definitions of Key Financial Figures) to this
Facility Agreement;
	 
	 	 	“Transfer” means the transfer of rights and obligations under this Facility Agreement
pursuant to Clause 27.3;

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	 	 	“Affiliated Enterprises” means enterprises in which “FS” has a direct or indirect
participation;
	 
	 	 	“Royalty Payments” means any payments made by the “Borrower” pursuant to Clauses 19.1.36
and 19.1.37.
	 
	 	 	“Sponsor’s Agreement FS Holdings” means the Agreement between “FS Holdings”, the “Agent”,
the “Borrower”, and “FS GmbH” pursuant to Annex 9a (Sponsor’s Agreement FS Holdings);
	 
	 	 	“Sponsor’s Agreement USA” means the Agreement between “FS”, “FS LLC”, “FS Holdings”, the
“Borrower”, and the “Agent” pursuant to Annex 9b (Sponsor’s Agreement USA);
	 
	 	 	“Debt Level” is defined in Annex 15 (Definitions of Key Financial Figures) to this Facility
Agreement;
	 
	 	 	“Insurance Policies” means the insurance policies listed in Annex 11 (Insurance Policies);
	 
	 	 	“Insurance Consultant” is Marsh GmbH, Frankfurt am Main, appointed by the “Agent”;
	 
	 	 	“Insurance Account” is the account no. 2011112 03 at the Commerzbank AG, Mainz (Bank Code
550 400 22) to be established in accordance with Clause 13.4 by the “Borrower”;
	 
	 	 	“Contract Documents” means this Facility Agreement, the “Fee Letter” and the “Security
Agreements”;
	 
	 	 	“Material Adverse Change” is the occurrence of an event which has a material adverse
influence on the business operations, the financial situation or the commercial
relationships of the “Borrower”, “FS GmbH”, “FS Holdings”, “FSLLC” or “FS” and which
results in the “Borrower”, “FS GmbH”, “FS Holdings”, “FS” and, until the “End of the
Construction Phase”, also “FSLLC”, no longer being able to comply with its financial or
other obligations under the “Contract Documents” or which endangers or precludes their
performance;
	 
	 	 	“Accountants” means the accounting firm PwC Deutsche Revision Aktiengesellschaft
Wirtschaftsprüfungsgesellschaft retained by the “Borrower” or another accountant appointed
by the “Borrower” which is satisfactory to the “Agent”;
	 
	 	 	“Schedule” means the schedule relating to the “Project” under Annex 8 (Schedule) which is
provided by the “Borrower” and confirmed by the “Project Appraiser”, as amended from time
to time with the consent of the “Project Appraiser” and the “Agent” in the actual form;
	 
	 	 	“Drawdown” means a drawdown of a payout under one of the Loans;

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	 	 	“Drawdown Request” means a request for a “Drawdown” under this Agreement pursuant to Annex
3 (Drawdown Request);
	 
	 	 	“Drawdown Period” means with regard to

	 	(a)	 	the “Term Loan” and the “Bridge Loan”, the period from signing
this Facility Agreement until 30 December 2007,
	 
	 	(b)	 	the “Revolver”, the period from signing this Facility Agreement
until 30 September 2012;

	 	 	“Drawdown Date” is a date on which a payout is supposed to be made under one of the
“Loans”;
	 
	 	 	“Interest Determination Notice” is the written notice of the “Borrower” about the duration
of an “Interest Period”.
	 
	 	 	“Interest Determination Date” is the second “Banking Day” prior to the beginning of each
interest period;
	 
	 	 	“Interest Hedging Agreement” is the framework contract for finance future transactions, to
be concluded by the “Borrower” with the IKB Financial Products Société Anonyme, Luxemburg
wherein the risk of change in interest rate is secured including all assets and all
individual accounts hereunder for at least 75 % of the outstanding under the “Term Loan” up
to its duration under consideration of redemption terms based o the “Business Plan”.
	 
	 	 	“Subsidy Order” is the order from the Investitionsbank of the State (Land) of Brandenburg
dated about the “Investment Subsidies and Supports”, as well as all related orders on
supports and subsidies for the benefit of the “Borrower” which are still to be issued.

	1.2	 	The use of quotation marks for certain terms and their derivatives serve as a reference to
the definitions in Clause 1.1 of this Facility Agreement. If the same term is used without
quotations marks, the general meaning resulting from the context applies.
	 
	 	 	The singular form of a word includes the plural, and the plural form includes the singular.

	2.	 	Loans

	 	 	The “Banks” grant the “Borrower” in accordance with their respective “Quotas”:
	 
	2.1	 	a term loan in the amount of EUR 53,044,000 (the “Term Loan”), a bridge loan in the amount of
EUR 22,000,000 (the “Bridge Loan”), and a working capital loan in the amount of EUR 27,000,000
(the “Revolver”).
	 
	2.2	 	The payout amount of the ,,Loans” is 100% respectively.

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	2.3.	 	“FS GmbH” and “FS Holding” are jointly and severally liable with the “Borrower” for all
obligations of the “Borrower” under this Facility Agreement.
	 
	2.4	 	The liability of “FS GmbH” for liabilities of the “Borrower” under the “Contract Documents”
and the right to foreclose the “Security” provided by “FS GmbH” shall be limited to the
respective amount of the “Freely Disposable Net Assets” existing at the time of such payment
or enforcement.

The restriction of the liability in the aforementioned Paragraph 1 shall only apply if “FS GmbH”
objects to the recourse or the foreclosure of a “Security” on the grounds of the restricted
liability within 15 “Banking Days” after the “Agent” has announced the recourse or the foreclosure
and within 3 “Banking Days” after the successful appeal, the amount of the “Freely Disposable Net
Assets” shall be determined by an independent auditor with the consent of the “Agent”.

	3.	 	Purpose of the Loans

	3.1	 	The “Term Loan” is exclusively designed for the partial financing of the fixed assets for the
“Project” in accordance with the description in the overview “Source of Funds / Use of Funds”
in Annex 2 (Source of Funds / Use of Funds).
	 
	3.2	 	The “Bridge Loan” serves to pre-finance the “Investment Supports”.
	 
	3.3	 	The “Revolver” serves the financing of the necessary operating funds for the “Project”.

	4.	 	Quotas of the Banks

	4.1	 	Each “Bank” undertakes to participate in each “Drawdown” under the “Loans” pursuant to this
Facility Agreement in an amount corresponding to its respective “Quota” on the respective
“Drawdown Date” and to place the amount allocated to it at the disposition of the “Agent”.
	 
	4.2	 	Each “Bank” is liable to the “Borrower” only with its “Quota” for compliance of the totality
of the obligations imposed on the “Banks” under this Facility Agreement. Joint and several
liability is excluded.
	 
	4.3	 	To the extent that a “Bank” does not fulfill its obligations under this Facility Agreement,
this does not relieve the other parties from the performance of their obligations under this
Facility Agreement.
	 
	4.4	 	The “Banks” are individual creditors and not joint creditors under this Facility Agreement.
	 
	4.5	 	Except in the case of a corresponding order by the “Majority of Banks” or unless expressly
regulated in this Agreement, the rights of the “Banks” will exclusively be exercised by the
“Agent” as the representative of the “Banks”.

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	5.	 	Drawdowns

	5.1	 	The “Borrower” can request a Drawdown under one of the “Loans” within the respective
“Drawdown Period” with a “Drawdown Request” in the form set forth in Annex 3 (Drawdown
Request). The correctly filled out “Drawdown Request” must be received by the “Agent” not
later than 10:00 am CET five “Banking Days” prior to the “Drawdown Date” as set forth in the
drawdown request.
	 
	5.2	 	The “Borrower” is only authorized to submit “Drawdown Requests” if the preconditions for
Drawdown set forth in Annex 4a (“General Preconditions for Payout”) and in Annex 4b (“Special
Preconditions for Drawdown”) have each been fulfilled to the satisfaction of the “Agent”.
	 
	5.3	 	“Drawdowns” under the “Term Loan” are only permitted if in addition to the preconditions set
forth in Annex 4a (“General Preconditions for Drawdown”) and in Annex 4b (“Special
Preconditions for each Drawdown”):

	 	(a)	 	Copies of invoices are presented which show progress in the project going
beyond the total amount of EUR 22,000,000. The invoices are to be certified by the
countersignature of an authorized person employed by the “Borrower”; and
	 
	 	(b)	 	The respective last “Project Progress Report” to be provided under Clause
17.8 has been issued to the satisfaction of the “Agent”.

	 	 	“Drawdowns” will be made in a maximum amount of 56.72 % of the respective net invoice
amount, which is in excess of EUR 22,000,000.
	 
	 	 	“Drawdowns” under the “Term Loan” are made in amounts of at least EUR 3,000,000 except for
the last “Drawdown”.
	 
	 	 	There will be a maximum of twelve “Drawdowns”.
	 
	5.4	 	“Drawdowns” under the “Bridge Loan” are only permissible if in addition to the preconditions
set forth in Annex 4a (“General Preconditions for Drawdown”) and in Annex 4b (“Special
Preconditions for each Drawdown”):

	 	(a)	 	The “Agent” has copies of the invoices for supplies and services for which
applications for the “Investment Supports” have been submitted; and
	 
	 	(b)	 	The respective last “Project Progress Report” to be provided under Clause
17.8 has been issued to the satisfaction of the “Agent”.

	 	 	“Drawdowns” are made in the amount of a maximum of 20.5% of the respective net invoice
amount.
	 
	5.5	 	A maximum of two “Drawdowns” per calendar month will be made in the amount of at least EUR
500,000.

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	5.6	 	Unless agreed otherwise, all payouts are made to the “Project Account FSM”.
	 
	5.7	 	As soon as all preconditions for the respective Drawdown under one of the Loans exist to the
satisfaction of the “Agent”, the “Agent” will confirm this to the “Banks”. Each “Bank” must
then provide to the “Agent” the amount allocable to it to be paid out on the respective
“Drawdown Date” by no later than 11:00 a.m. CET.

	6.	 	Termination and Loss of the Loan

	6.1	 	The “Borrower” is entitled to terminate the “Loans” to the extent these “Loans” have not been
used in “Drawdowns” in amounts of EUR 2,000,000 by advance written notice of five “Banking
Days” if the “Borrower” has demonstrated to the satisfaction of the “Agent” that the total
financing of the “Project” is not endangered by the termination.
	 
	6.2	 	In the case of termination of the “Term Loan”, the last due scheduled repayment installment
will be reduced by the terminated amount.
	 
	 	 	The “Bridge Loan” and the “Revolver” are reduced upon termination by the respective
terminated amount.
	 
	6.3	 	The amounts of the “Loans” not used by expiration of the respective “Drawdown Periods” lapse
at that time.

	7.	 	Interest

	7.1	 	The interest rate for the respective interest period is calculated for each “Drawdown” as a
sum of the “Reference Interest Rate” and the respective margin applicable under Clause 7.6.
	 
	7.2	 	The interest periods for the “Term Loan” and the “Bridge Loan” are, at the election of
“Borrower” three or six months and for the “Revolver”, one, three or six months. The election
for the first interest period for a “Drawdown” under a “Loan” is made in the “Drawdown
Request”. The “Borrower” will inform the Agent about the duration of the interest period the
“Borrower” desires for the subsequent interest periods of the relevant “Drawdown” by no later
than 11:00 a.m. CET five “Banking Days” prior to the “Interest Determination Date” by using
the form set forth in Annex 14 (Interest Determination Notice).
	 
	 	 	If the “Borrower” does not make an election in the “Drawdown Request” or by the scheduled
date five “Banking Days” prior to the “Interest Determination Date”, the interest period
has the duration of three months.
	 
	7.3	 	The first interest period of a “Drawdown” under a “Loan” begins with the “Drawdown Date” and
ends upon expiration of one, three or six months, depending on the elected duration of the
interest period, on the day corresponding in its number to the “Drawdown Date”. The first
interest period for each additional “Drawdown” under the Loan begins with the last day of the
previous interest period and ends on the last day of the duration determined or agreed for it.
Each further “Interest Period” for a “Drawdown” under the

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	 	 	respective “Loan” begins on the last day of the previous interest period and ends on the
last day of the duration determined or agreed for it. If a repayment date under Clause 10
(Repayment) falls within the determined or agreed duration of an interest period, the
interest period ends on the repayment date.
 
	7.4	 	If the last day of an interest period falls on a day, which is not a Banking Day, the
interest period is extended to the next “Banking Day” unless this day falls in the next
calendar month. In this case, the interest period ends on the immediately preceding “Banking
Day”.
	 
	7.5	 	If more than one interest period under a respective “Loan” end on the same day, the relevant
“Drawdowns” will be combined on the relevant day and will be treated in the future as a single
“Drawdown”.
	 
	7.6	 	The respective margin for the total duration of the “Term Loan” is 1.6 % p.a., for the
“Bridge Loan” 2 % p.a. and for the “Revolver” 1.8 % p.a.
	 
	7.7	 	If the “Agent” can only determine the “Reference Interest Rate” for an interest period on the
basis of quotes from the “Reference Banks”, the applicable “Reference Interest Rate” for this
interest period is the interest rate calculated by the “Agent” (if appropriate, rounded up to
the next full sixteenth of a percentage point) from the arithmetic mean of the interest rates
which have been notified to the “Agent” on the “Interest Determination Date” by at least two
“Reference Banks” at approximately 11:00 a.m. CET.
	 
	7.8	 	The interest will be accrued and is due for payment at the end of each interest period. The
“Agent” will inform the “Borrower” and the “Banks” about the amount of the interest payments
which are due in a timely manner prior to expiration of each interest period.
	 
	7.9	 	To the extent that payments are made on dates other than the end of an interest period, the
“Borrower” must compensate the “Banks” for all damages resulting from the early repayment.
	 
	 	 	A loss of margin is not being compensated.

	8.	 	Market Disruption

	 	 	If one of the following events occurs, the “Agent” will inform the “Borrower” and the
“Banks” about this without undue delay (“Market
Disruption Notice”):

	 	(a)	 	the determination of “EURIBOR” is not possible and none or only one of the
“Reference Banks” has provided an interest rate to the “Agent” by 11:30 a.m. CET on
the respective “Interest Determination Date” which is required in order to determine
the “Reference Interest Rate”, or
	 
	 	(b)	 	the “Agent” has received a notice prior to the beginning of the interest
period regarding a “Drawdown” from one or more “Banks” whose “Quotas” account in
aggregate at least 50 % of all “Quotas” that for reasons generally affecting the

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	 	 	 	European interbank market the refinancing costs for the “Banks” for this “Drawdown”
are higher than the “Reference Interest Rate” for this interest period.

	 	 	Upon receipt of such a “Market Disruption Notice” the respective “Drawdown” shall be paid
out if the “Borrower” does not instruct otherwise; the “Agent” and the “Borrower” will
negotiate in good faith within a period of 10 days about an alternative method for
determining the interest for the “Drawdown”. Such an alternative method can contemplate
both another interest period and another reference interest rate. If no agreement is
reached prior to expiration of this deadline, the interest rate for the relevant “Drawdown”
for each “Bank” is the sum of the respective margin under Clause 7.6 and the annual
refinancing costs for the relevant “Bank” with regard to its participation in the
“Drawdown”. Each “Bank” will inform the “Agent” about this interest rate as quickly as
possible and in any event prior to the end of the relevant interest period.

	9.	 	Default Interest

	9.1	 	If the “Borrower” does not fulfill a payment obligation under this Facility Agreement when
due, the “Borrower” owes default interest from the due date until the date of payment in an
amount of the “Base Interest Rate” plus 5 % p.a. or, if it is an interest payment with which
the “Borrower” is in default, liquidated damages in the corresponding amount. A reminder is
not required.
	 
	9.2	 	The amount of the default interest or the damages will be determined by the “Agent” and will
be notified to the “Borrower” and the “Banks”.
	 
	9.3	 	The “Banks” retain the right to prove that they have suffered higher damages, and in the case
of liquidated damages the “Borrower” retains the right to prove lower damages.

	10.	 	Repayment

	10.1	 	The “Term Loan” is to be repaid quarterly in arrears on 31.03, 30.06, 30.09. and 30.12. of
each year in 20 equal repayment installments of EUR 2,652,200.00 each; the first installment
is due on 31.03.2008, and the last installment is due on 30.12.2012.
	 
	10.2	 	The “Bridge Loan” is to be repaid in the amount of the respectively paid out “Investment
Subsidies”, but no later than in full on 30.12.2008. The amounts received in the “Investment
Account” in connection with the “Investment Subsidies” will be applied respectively at the end
of the next interest period as a repayment of the “Bridge Loan”.
	 
	10.3	 	The final due date for the Revolving Facility is on 30.12.2012.

	11.	 	Voluntary Repayment

	11.1	 	The “Term Loan” and the “Bridge Loan” can each be voluntarily repaid in advance in a single
sum or in partial amounts of at least EUR 2,000,000 at the end of any interest period upon
giving at least 5 “Banking Days” irrevocable written advance notice.

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	 	 	The voluntary repayment of the “Bridge Loan” is only permissible after complete repayment
of the “Term Loan”.
	 
	11.2	 	The “Borrower” is obliged (1) to make a mandatory special repayment of the “Term Loan” at the
end of the current interest period under the “Term Loan” and (2) after complete repayment of
the “Term Loan”, to make a mandatory special repayment of the “Revolver” at the end of the
current interest period under the “ Revolver” and (3) after complete repayment of the
“Revolver”, to make a mandatory special repayment of the “Bridge Loan” at the end of the
current interest period under the “Bridge Loan”

	 	(a)	 	with 100% of each amount in excess of EUR 500,000 in an individual case
and/or per business year of the “Borrower” derived from any proceeds from the sale of
fixed assets of the “Borrower” unless the sale of assets to be replaced is involved.
In the case of the sale of assets to be replaced, a mandatory special repayment must
be made if the replacement acquisition has not been demonstrated to the satisfaction
of the “Agent” within 180 days after the date of sale;
	 
	 	(b)	 	with payments from the “Insurance Policies” to the extent that these exceed
EUR 100,000 in an insured event to the extent that the payment is not used pursuant to
Clause 13.3 within the deadline set there; and
	 
	 	(c)	 	the first time for the business year 2008, in 2009 with 20 % of the “Surplus
Cash Flow” of the “Borrower” subject to the condition that none of the key financial
numbers mentioned in Clause 18 is violated as a result of this mandatory special
repayment.

	11.3	 	In the case of early repayment of the “Term Loan”, the respective last due scheduled
repayment installment will be reduced by the specially repaid amount.
	 
	 	 	The “Bridge Loan” and the “Revolver” are reduced by the respective specially repaid amount
upon early repayment.

	12.	 	New Drawdowns

	 	 	Amounts repaid under the “Term Loan” and the “Bridge Loan” cannot again be drawn down.
	 
	 	 	Each “Drawdown” under the “Revolver” can be completely or partially repaid as of the end of
the respective interest period, whereby both the amount to be repaid as well as the
remaining amount to be paid out cannot be less than EUR 500,000 if the outstanding amount
is not completely repaid. The repayment of amounts paid out under the “Revolver” must be
notified to the “Agent” in writing using the form set forth in Annex 16 (“Template
Repayment Revolver”) at least five “Banking Days” prior to the end of the respective
“Interest Period”.
	 
	 	 	Amounts repaid under the “Revolver” can be again drawn down if the preconditions for
Drawdown set forth in Clause 5 are satisfied.

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	13.	 	Accounts

	13.1	 	The “Borrower” is required to establish the following accounts prior to the first Drawdown
under the “Loans”, which accounts are to be maintained exclusively without overdraft capacity
and are to be pledged with first ranking to the “Security Agent” and with regard to which the
respective banks where the accounts are maintained have waived their pledge rights under their
general terms and conditions:
	 
	13.1	 	“Project Account”:
	 
	 	 	All payments of the “Agent” to the “Borrower” under the “Loans” will be made to the
“Project Account”.
	 
	 	 	Payments of the “Borrower” from the “Project Account” can only be made in accordance with
the purpose of the respective “Loans”. In the case of a “Threatening Event of Default”
under Clause 20, the “Borrower” is only entitled to make payments from the “Project
Account” with the prior written consent of the “Agent”.
	 
	13.2	 	“Investment Account”
	 
	 	 	The “Investment Account” will be credited with payments under the “Investment Supports”.
The “Borrower” undertakes to instruct the appropriate tax office to make payments for the
“Project” under the “Investment Supports” exclusively to the “Investment Account”.
	 
	 	 	The “Borrower” can only use the funds in the “Investment Account” for the repayment of the
“Bridge Loan”. Any other disposition of the funds is excluded.
	 
	 	 	The “Borrower” hereby irrevocably authorizes the “Agent” to collect all of the amounts
credited to the “Investment Account” as of the end of an interest period following the
credit for repayment of the amounts paid out under the “Bridge Loan”. The “Agent” is hereby
expressly released from the application of § 181 BGB.
	 
	13.3	 	“Insurance Account”
	 
	 	 	The “Borrower” will make sure that all payments in connection with the “Insurance Policies”
are credited to the “Insurance Account”.
	 
	 	 	The “Borrower” shall use funds in the “Insurance Account” only

	 	(a)	 	for a replacement acquisition or reconstruction of the assets affected by the
insurance event if the “Borrower” proves the replacement acquisition to the
satisfaction of the “Agent” within 180 days after the payout of the insurance amount,
whereby a copy of the order is sufficient proof;
	 
	 	(b)	 	if payments under the business interruption insurance are involved, to cover
the ongoing costs of operations if the “Borrower” proves the operating costs to the

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	 	 	 	satisfaction of the “Agent” within 180 days after the payout of the insurance
amount; and
 
	 	(c)	 	if payments under the business liability insurance are involved, for the
satisfaction of claims for damages under imperative provision of law.

	 	 	Any other disposition of the funds is excluded.
	 
	13.4	 	“Debt Service Reserve Account”
	 
	 	 	Before drawdown of any of the “Loans” “Borrower” is required to pay the “Debt Service
Reserve” from the first “Drawdown” under the “Loans” into the “Debt Service Reserve
Account”.
	 
	 	 	To the extent that a part or the entire amount of the “Debt Service Reserve” has been used
to repay an amount due in connection with the “Loans”, the “Borrower” is required to again
restock the “Debt Service Reserve” on the “Agent’s” first demand.
	 
	 	 	The “Debt Service Reserve” remains in the “Debt Service Reserve Account” until all claims
of the “Banks” under and in connection with the Facility Agreement have been fulfilled.
	 
	 	 	The “Borrower” can only dispose of the interest credited to the “Debt Service Reserve
Account” pursuant to a separate interest agreement between the “Borrower” and the account
holding bank, but not of the “Debt Service Reserve”.
	 
	 	 	If the “Borrower” does not comply with its payment obligations under the Facility
Agreement, the “Borrower” hereby irrevocably authorizes the “Agent” to apply the “Debt
Service Reserve” to settle due obligations under Clause 14.4. The “Agent” is released from
the restrictions of Section 181 German Civil Code.

	14.	 	Payments of the “Borrower” and the “Banks”

	14.1	 	All payments of the “Borrower” and the “Banks” to the “Agent” under the “Contract Documents”
are to be rendered to account number 2013535410, routing number 30010400, IBAN: DE
91300104002013535410, a general account of the “Borrower” to be established for this purpose
with IKB Deutsche Industriebank AG, over which the “Borrower” has no authority to make
dispositions.
	 
	14.2	 	All payments of the “Borrower” to the “Agent” under the “Contract Documents” are due for
payment in EUR on the due date by 10:00 a.m. CET. If payments under this Facility Agreement or
the “Contract Documents” fall due on a day which is not a “Banking Day”, the due date is
extended to the next “Banking Day” in the same calendar month, or if the next “Banking Day”
falls in the next calendar month, the due date is the immediately preceding “Banking Day”.
	 
	14.3	 	Each payment made by the “Borrower” or a third party make to the “Agent” for obligations of
the “Borrower” under the Facility Agreement or the “Contract

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	 	 	Documents” will be distributed by the “Agent” to the “Banks” without undue delay
corresponding to their “Quotas”. If a repayment is the result of the termination of the
Facility Agreement in relation to a specific “Banks” pursuant to Clause 15.3 the “Agent”
will distribute the payment to such “Banks”.
 
	14.4	 	If a payment of the “Borrower” or a third party for the obligations of the “Borrower” is not
sufficient to satisfy all obligations of the “Borrower” towards the “Banks” upon receipt of
the payment, the “Agent” is authorized to credit the received payments to the obligations of
the “Borrower” in the following sequence:

	 	•	 	first, to the outstanding costs and disbursements of the “Agent”,
	 
	 	•	 	second, to any outstanding fees,
	 
	 	•	 	third, to default interest,
	 
	 	•	 	fourth, to due interest,
	 
	 	•	 	fifth, to due amounts of principal,
	 
	 	•	 	sixth, to all other due payments.

	 	 	Any different determinations by the respective “Borrower” of how to credit the payment will
not be taken into account.
	 
	14.5	 	Interest and fees will be calculated on the basis of the actual number of days elapsed in
relation to a year having 360 days.

	15.	 	Changes in certain Bases of the Contract, Taxes

	15.1	 	If changes in law or changes in guidelines, orders or requirements of the banking supervisory
authorities with regard to minimum reserves or liquidity or equity capital requirements (e.g.,
the requirements under the so-called Basel II Principles) result in,

	 	(a)	 	an increase of the costs of a “Bank” for maintaining its obligations assumed
under this Agreement,
	 
	 	(b)	 	an increase of the costs of a “Bank” of providing, complying with or
financing its participation in a “Drawdown” or the maintenance of its credit promise,
or
	 
	 	(c)	 	a decrease in any amount or interest which the relevant “Bank” has received
or is supposed to receive under or in connection with this Facility Agreement,

	 	 	the relevant “Bank” is entitled to demand payment of an amount equal to these additional
costs or the reduction from the “Borrower”. A “Bank” which intends to demand the amounts
mentioned under (a) through (c) must inform the “Borrower” accordingly through the “Agent”.
This notice must state the determined amount of the additional costs or the reduction, the
time at which these costs or the reduction was fist incurred, as well as the reason for it.
The “Banks” are, however, not obliged to provide statements,

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	 	 	which contain confidential information about their organization or internal business,
affairs or which would permit corresponding conclusions to be drawn. The payment of the
amount of the additional costs or the reduction is due 15 “Banking Days” after receipt of
the notice at the “Borrower”.
 
	15.2	 	The obligation to compensate costs pursuant to Clause 15.1 (a) or (b) above or the obligation
to pay the difference amount pursuant to Clause 15.1 (c) above shall not exist, if the
respective request or order of the banking supervisory authority is directed only against an
individual “Bank” and is not related to the “Project” or a person involved in the “Project”.
	 
	15.3	 	In case that the “Borrower” is obliged to make a payment pursuant to Clause 15.1 (a) and (b)
or payment of the difference amount pursuant to Clause 15. 1 (c) above, it shall be entitled
to terminate the “Facility Agreement” regarding such “Banks”, which ask for payments pursuant
to Clause 15.1. The “Borrower” shall then be obliged to repay the outstanding “Loans” as far
as they relate for the “Quotas” of such “Banks” at the end of the respective “Interest
Period”. or, together with a prepayment indemnity (Vorfälligkeitsentschädigung), during the
respective “Interest Period”. The calculation of the prepayment indemnity shall be done in
accordance with actual binding judgments.
	 
	15.4	 	The “Borrower” must make all payments to the “Banks” without deductions or withholdings for
taxes, levies, fees or similar burdens to the extent that the “Borrower” is not required by
law to make the deduction or the withholding.
	 
	 	 	If the “Borrower” is required by law to make deductions or withholdings of tax, levies or
fees, it must increase the amounts to be paid so that the net amount remaining after the
deduction or the withholding corresponds to the amount which the “Banks” would receive upon
payment of the originally owed amount without deduction or withholding.
	 
	 	 	If a “Bank” receives at a later stage a tax credit, a tax refund or a tax reduction, which
results from a payment, which has to be made in accordance which Clause 2 above, the “Bank”
has to pay (if is able to pay notwithstanding the received payment) to the “Borrower” an
amount in its own fair judgment. However, if the tax credit, the tax refund or the tax
reduction is not related to a payment made by a “Borrower” pursuant to sub-clause 2 above
or the total amount does not correspond, (a) the respective “Bank” is permitted to decide
in its own discretion about the reasonable level of amount to be paid to the “Borrower” and
the point of time of such payment, (b) the “Bank” shall decide in its own fair judgment
about the use, the application or the regulation of such tax refunds or tax privileges and
(c) the respective “Bank” is not obliged to release any information regarding its own tax
issues or calculations.
	 
	 	 	If a “Bank” which has paid an amount to the “Borrower” according to Paragraph 3 notifies,
that the payment or privilege relating to the payment was incorrect or has been withdrawn,
the “Borrower” has to refund such an amount to the “Bank” after request, which is in the
“Bank’s” own fair judgment necessary to bring the “Bank” in the same situation as if the
“Bank” would have been able to receive the refund or the privilege.

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	15.5.	 	Each “Bank” shall represent to the “Borrower” after its request a letter in the form of
Rundschreiben des Bundesfinanzministeriums vom 20.Oktonber 2005 (Circular of the German
Ministry of Finance) dated 20 October 2005 (IV B 7 – S2742a – 43/05) to § 8a KStG.

	16.	 	Representations and Warranties

	16.1	 	The “Borrower” represents to the “Agent” and the “Banks” on the date on which this Facility
Agreement is signed that the following statements are correct:
	 
	16.1.1	 	The “Borrower” is a duly established company with limited liability under German law. The
“Borrower” has the authority to conduct and continue its present business without restrictions
and to own and possess its current assets.
	 
	16.1.2	 	The “Borrower” is entitled to validly conclude the “Contract Documents” as well as the
“Project Agreements”, to exercise its rights under these contracts and to perform its
obligations under these contracts and has all corresponding “Permits” at the respective point
in time.
	 
	16.1.3	 	All “Permits” as well as all applications or other actions relating to public authorities
which the “Borrower” is required to obtain or carry out according at the respective time,
based on the status of the “Project”, have been obtained or carried out by the “Borrower” and
have been granted by a final order and have not been withdrawn or revoked.
	 
	16.1.4	 	The presented and to be presented annual and quarterly financial statements to the “Banks”
pursuant to the provisions of this Facility Agreement were prepared in accordance with
applicable statutory provisions and present a true and fair view of the assets, the financial
situation and the earnings position of the “Borrower”, and there have been no “Material
Adverse Effects” at the “Borrower” since the time such financial statements have been
prepared.
	 
	16.1.5	 	There is no event of default under this Facility Agreement and no “Threatening Event of
Default”.
	 
	16.1.6	 	There are not proceedings before a court, an arbitral tribunal or an administrative
authority pending or threatened against or initiated by the “Borrower” which in the aggregate
exceed an amount in controversy of EUR 2,000,000.
	 
	16.1.7	 	The “Borrower” conducts its business in accordance with all applicable legal provisions,
including environmental provisions and in accordance with all applicable administrative
regulations and orders.
	 
	16.1.8	 	The “Borrower” has not established any security interest over any of its assets except for
the “Securities”.
	 
	16.1.9	 	The respective “Borrower” has properly submitted all tax declarations and has paid all taxes
when due, regardless of their type.

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	16.1.10	 	The “Borrower” is neither insolvent nor is insolvency imminent. The “Borrower” has not been
served with an application to commence insolvency proceedings nor have such proceedings been
commenced.
	 
	16.1.11	 	The “Borrower” has completely and accurately disclosed to the “Agent” and the “Banks” all
facts and information which upon exercising the care of a prudent businessman could be assumed
would be of importance for the credit decision of the “Banks”. All information which the
“Borrower” or one of its advisors has forwarded to the “Agent” or the “Banks” in writing are
accurate and complete at the time they were forwarded to the “Banks” or the “Agent”.
	 
	16.1.12	 	The “Borrower” has at least until the repayment of the “Loans” the unrestricted right to
dispose or right of use over all relevant licenses, intellectual property rights or similar
rights for the “Project” or has secured access to these rights under contract law by way of
the “Project Agreements”.
	 
	16.1.13	 	The “Borrower” is drawing down the “Loans” for its own account.
	 
	16.1.14	 	Except for the “Project Contracts” listed in Annex 5 (Project Contracts), no other material
products which have not been notified by the “Borrower” to the “Agent” are required for the
construction and the operation of the “Project”. The “Borrower” is not aware of, and has not
been notified about any performance defaults under the “Project Contracts”, nor should the
“Borrower” have been aware of such performance defaults as a result of the specific
circumstances unless the “Borrower” has informed the “Agent” about such a performance default
without undue delay.
	 
	16.2	 	The representations and warranties contained in Clause 16.1 are deemed to have been repeated
by the “Borrower” for each “Drawdown” and for each payment of interest with regard to the set
of facts and the respective circumstances existing at that time if the respective “Borrower”
has not notified the “Agent” in writing at least five “Banking Days” prior to the “Drawdown”
or the interest payment that the “Borrower” cannot make one of the representations and
warranties set forth in Clause 16.1 of this Facility Agreement, and the notice must state the
reasons. This does not affect the rights under Clause 20.1.3

	17	 	Obligations to provide Information

	17.1	 	The “Borrower” will make available to the “Agent” for the purpose of forwarding to the
“Banks” and the “Guarantors” his own certified financial statements (inter alia, balance
sheet, profit and loss statement, cash flow account) and auditors reports as well as the
certified consolidated financial statements (inter alia, balance sheet, profit and loss
statement, cash flow account) and audit reports for “FS GmbH”, “FS Holdings” (consolidated) as
well as “FS” (consolidated) within 120 days after conclusion of the his business year. The
auditors report is to contain an opinion about the conditions, as they pertain to the market
standard, of the internal delivery and service commerce according to Clause 19.1.14.

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	 	 	Together with its respective audited financial statements, the “Borrower” will also present
the calculation of the “Surplus Cash Flow”.
	 
	17.2	 	The “Borrower” will provide to the “Agent” for the purpose of forwarding to the “Banks” and
the “ Guarantors” a certificate of the “Accountant” within 120 days after conclusion of its
respective business year that the “Accountant” has examined the information of the “Borrower”
(i) on the agreed key financial figures in Clause 18 (Key Financial Figures) and on the
“Surplus Cash Flow” and (ii) on the amount of the investments made with regard to the
plausibility of the information and no objections have been raised.
	 
	17.3	 	The “Borrower” will provide to the “Agent” for the purpose of forwarding to the “Banks” and
the “Guarantors” within 45 days after the end of each business quarter the quarterly interim
numbers, if any, (balance sheet, profit and loss statement, cash flow account, liquidity
status and liquidity planning for the next 12 months, information on inventories, debtors and
creditor payment periods, with all information being accompanied by a comparison of the actual
numbers to the planned numbers in the “Business Plan”).
	 
	 	 	The “Borrower” will provide information, in the context of its quarterly reporting, about
the produced number of solar modules in the amount of the produced mega watts and will also
provide for a calculation of the key financial figures pursuant to Clause 18 (Key Financial
Figures) within 45 days after the end of its respective business quarter.
	 
	 	 	If the “Borrower” intends to make “Royalty Payments” on a quarterly basis, he will provide
the certified quarterly interim numbers together with the calculation of the financial
figures under Clause 18 (Financial Numbers).
	 
	17.4	 	The “Borrower” will provide to the “Agent” for the purpose of forwarding to the “Banks” and
the “Guarantors” within 45 days after the end of each business quarter the quarterly
consolidated interim numbers, if any, (balance sheet, profit and loss statement, cash flow
account) for the “FS Group”.
	 
	17.5	 	The “Borrower” will provide the “Agent” for the purpose of forwarding to the “Banks” and the
“Guarantors” an updated corporate plan (business plan) with the financial planning, the
planning of sales as well as the investment planning and liquidity planning for the following
business year one month prior to expiration of a then respective current business year. To the
extent that the corporate plan is different from the “Business Plan”, the consent of the
“Agent” is required.
	 
	17.6	 	The “Borrower” grants the “Agent” and any third party which it may engage and which is
subject to professional confidentiality as well as the “Guarantors” upon their request access
to the “Borrower’s” business records and will allow the “Agent”, the engaged third parties
who are subject to professional confidentiality and the “Guarantors” access upon their first
demand to view and have access at the normal business hours to the “Borrower’s” business
premises, business records and the plant and will give the “Agent” information about the
security collateral.
	 
	17.7	 	The “Borrower” will inform the “Agent”, without undue delay, about all events and
circumstances related to the “Borrower” and “FS GmbH” that could endanger the

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	 	 	economic viability and the operation of the “Project” and/or the servicing of the “Loans”,
and, upon the “Agent’s” request, about the “Borrower’s” general economic situation as well
as the general economic situation of “FS GmbH”.
 
	17.8	 	The “Borrower” will cooperate with the “Project Appraiser” so that he can provide a “Project
Progress Report” to the “Agent” and the “Banks” by the “End of the Construction Phase” in a
timely manner within 15 days after expiration of every calendar month.
	 
	17.9	 	“Borrower” will inform the “Agent” without undue delay about any delays in the construction
phase of the “Project” compared to the “Schedule” and will show the “Agent” upon its request
the effects of such delays and will also show how compliance with the intended completion date
can be assured.
	 
	17.10	 	“Borrower” will inform the “Agent” without undue delay about technical disturbances which
lead or could lead to a negative impact on the operations of “Project”.
	 
	17.11	 	The “Borrower” will inform the “Agent” until the “End of Construction Phase” on a quarterly
basis and thereafter on a yearly basis, together with the certified financial statements under
Clause 17.1, of an actual inventory list of the equipment, machinery and technical tools which
have been used for security.
	 
	17.12	 	The “Borrower” will inform the “Agent” about changes in the “Borrower’s” management.
	 
	17.13	 	The “Borrower” will inform the “Agent”, without undue delay, about the occurrence or
imminence of a “Threatening Event of Default”.

	18.	 	Key financial Numbers

	 	 	“Borrower” undertakes to comply with the following key financial figures:
	 
	18.1	 	The “Debt Service Coverage Level” cannot be lower than the value of 1.1:1;
	 
	18.2	 	The “Debt Level” cannot exceed the following values for the following respective time
periods:

	 	 	 
	Time period	 	Debt Level
	from 1 Jan. 2008 to 31 Dec. 2008

(inclusive)

	 	3.0:1
	from 1 Jan. 2009 to 31 Dec. 2009

(inclusive)

	 	2.5:1
	from 1 Jan. 2010 until the end of

the term of the “Loans”

	 	1.5:1

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	18.3	 	The Key Financial Figures will be determined by the “Borrower” on 31.03, 30.06, 30.09
respectively of each year on the basis of the quarterly numbers of the “Borrower” pursuant to
Clause 17.3 for the precedent 12 months and as of 31.12 of each year on the basis of the
certified annual accounts pursuant to Clause 17.1, for the first time as of 31.12.2008.
Compliance with the key financial figures must be confirmed to the “Agent” by the commercial
managing director of the “Borrower” in writing each time.
	 
	 	 	If the “Borrower” and the “Agent” do not agree about the determination of the key financial
numbers on the basis of the quarterly numbers, the “Agent” is entitled to retain an
accountant at the costs of the “Borrower” who will determine and certify the key financial
figures.

	19.	 	Covenants and Conditions

	19.1	 	The “Borrower” will
	 
	19.1.1	 	establish the “Securities” or will make sure that they are established free of prior
encumbrances with a first priority and free of rights of third parties; should the
“Securities” deteriorate, especially due to a loss of value and/or losses, upon demand of the
“Agent”, the “Borrower” will provide the “Banks” with additional securities.
	 
	19.1.2	 	obtain all “Permits” required for a business operations and the “Project” at the respective
time and will ensure that the “Permits” are maintained and will provide proof of this to the
“Agent” upon its request and will construct and operate the “Project” based on the established
European environmental standards and guidelines, and will observe legal ordinances and
regulations;
	 
	19.1.3	 	conduct and insure his business operations in accordance with the standard common in the
industry and with the care of a prudent businessman. In particular, the “Borrower” will issue
invoices in the intervals common in the industry to his customers for solar modules and will
attend to a timely collection of outstanding receivables;
	 
	19.1.4	 	not enter into futures transactions without cover without the prior consent of the “Banks”
and the “Guarantors”;
	 
	19.1.5	 	comply at all times with all terms and conditions and requirements of the “EU Decision”, the
“Deficiency Guarantee”, the “Investment Subsidies and Supports” and the “Subsidy Orders” and
will observe all obligations contained therein;
	 
	19.1.6	 	not change the type and scope of his business operations without the prior written consent
of the “Banks” and the “Guarantors” to the extent that such a change would lead to a “Material
Adverse Change” or endanger the “Project”;
	 
	19.1.7	 	conclude the “Project Contracts” in the form agreed with the “Banks” to the extent that they
were not already supposed to be concluded and were concluded under Annex 5 (Project Contracts)
prior to the first Drawdown under one of the “Loans” and will not terminate, amend or waive
their rights under the “Project Contracts” without the prior written consent of the “Banks”
and the “Guarantor” if such a termination, amendment or

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	 	 	such a waiver results in a “Material Adverse Change” or an endangerment of the “Project”.
 
	 	 	The “Borrower” will inform the “Agent”, without undue delay, about all amendments to the
contracts;
	 
	19.1.8	 	report in the context of the quarterly reporting about the conclusion of “Off-Take
Agreements”, provide the “Agent” with copies of these upon its request and will assign the
claims under the newly concluded “Off-Take Agreements” to the “Banks” immediate afterward upon
the first demand of the “Agent”;
	 
	19.1.9	 	inform the “Agent” without undue delay if a customer of solar modules defaults on payments
under the “Off-Take Agreements”;
	 
	19.1.10	 	inform the “Agent” and the “Guarantors” with undue delay about all material events and
circumstances, which could endanger the commercial viability of the “Project” and/or the
servicing of the “Loans”. In particular, the “Borrower” will inform each of the “Agent” and
the “Guarantor” without undue delay as soon as an “Event of Default” or the “Threatening of an
Event of Default” under this Facility Agreement or a performance under the “Project Contracts”
occurs;
	 
	19.1.11	 	fulfill his obligations under this Facility Agreement at least with the same priority with
their other present and future unsubordinated and unsecured obligations. This does not apply
to those obligations which have statutory priority;
	 
	19.1.12	 	make sure that his business operations and the “Project” are insured in a commercially
reasonable scope and

	 	(a)	 	that the “Insurance Policies” are concluded no later than the points in time
set forth in Annex 11 (insurance) and that the insurance is maintained throughout the
term of this Facility Agreement (with the exemption of the insurances for the
construction period) and in particular that the material assets to be brought into the
“Project” are insured completely during the shipping and construction phase of the
“Project” as well as during the operational phase, against fire and all other
significant elemental damaging events which are standard in the industry,
	 
	 	(b)	 	that the insurance contracts for the “Insurance Policies” including all
amendments are sent as copies to the “Agent” immediately after being concluded,
	 
	 	(c)	 	that the “Agent” immediately reports the new conclusion of or amendments to
the insurance contracts and that the “Agent” provides, upon request, a confirmation
from the “Insurance Agent” showing that the relevant “Insurant Policies” are suitable
and standard for the industry;
	 
	 	(d)	 	that the claims under the insurance contracts for the “Insurance Policies”
with the exception of the third party liability insurance are assigned immediately
after their conclusion as security to the “Banks” and ensure that they present to the
,,Agent” the respective insurance letters and acknowledgements if requested; and

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	 	(e)	 	that evidence about the payment of the insurance premiums is always provided
to the “Agent” without undue delay;

	19.1.13	 	maintain his rights of disposition and/or use for the “Project” and its all relevant
licenses, intellectual property rights and similar rights are maintained in full for their
respective business operations and will immediately pay any license fees, registration fees
and similar fees when due if the pre-requisites indicated under Clause 10.1.37 are met. In
particular, the relevant licenses, intellectual property rights and similar rights are
maintained in such a way that in the case of insolvency of the “Borrower” or “FS” or rather
“FS LLC”, the “Borrower” or the appointed insolvency administrator for the “Borrower” or a
legal successor to the “Borrower” can enact them. Should such licenses or intellectual
property rights for the “Borrower” be violated or affected by a third party, the “Borrower”
will exhaust all available legal means in order to defend themselves from such violation or
offence.
	 
	 	 	If additional licenses, intellectual property rights or similar rights are required for the
execution of the “Project” or the “Borrower’s” business operations, the “Borrower” will
take all necessary action in order to obtain or register these licenses, intellectual
property rights or similar rights;
	 
	 	 	The “Borrower” will not violate any necessary intellectual property rights or license
rights of third parties required for the “Project” or its “Business Operations” and will
provide evidence of this to the “Agent” upon its request in a form satisfactory to the
“Agent”;
	 
	 	 	If the “Borrower” has indications about a violation of intellectual property rights or
license rights of third parties, the “Borrower” will inform the “Agent” about this without
undue delay and will take all necessary action in order to avoid harm to the “Project” or
its business operations;
	 
	19.1.14	 	will effect the internal supply and services traffic (including during the investment
phase) with JWMA Partners LLC, Phoenix, as well as the companies within the control of JWMA,
“affiliated companies” and the “sponsors” only within the scope of its normal business
activities and not on worse terms and conditions that are common between third parties acting
at arm’s length.
	 
	 	 	The “Borrower” shall conclude no distribution and take-off contracts with “FS GmbH”, in
which the “maximum commission entitlement” or the “maximum distribution margin” are
exceeded and to whom “FS GmbH” pays no payments exceeding the “maximum commission
entitlement” or the “maximum distribution margin” under the distribution and take-off
contracts;
	 
	19.1.15	 	establish additional security upon request of the “Banks” upon deterioration of the
“Securities” especially as a result of a loss of value and/or losses;
	 
	19.1.16	 	not complete or have completed any merger or spin-off or reorganization without the prior
written consent of the “Banks” and the “Guarantors”;

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	19.1.17	 	not change their corporate form or allow it to be changed and will not enter into any
corporate group agreements or other agreements which could have effects on its corporate or
capital structure without the prior written consent of the
“Banks” and the “Guarantors”;
	 
	19.1.18	 	not maintain or open any additional business accounts other than the accounts contemplated
in Clause 13 without the prior written consent of the “Banks” and the “Guarantors”;
	 
	19.1.19	 	not enter into any agreements resulting in a “Material Adverse Change” without the prior
written consent of the “Banks” and the “Guarantors”;
	 
	19.1.20	 	carry out and supervise the construction and the operation of the “Project” (especially
regular maintenance and repair of the assets required for the business operations) with the
care of a prudent businessman and complete the “Project” within the “Schedule”;
	 
	19.1.21	 	comply with the “Time Schedule” and inform the “Agent” about any delays compared to the
“Time Schedule” without undue delay. The “Agent” is entitled to retain the “Project Appraiser”
for the purpose of examining the cause of any delays in excess of 4 weeks. The costs for such
an examination will be borne by “Borrower”, whereby the “Agent” will give due consideration to
the justified interests of “Borrower” with regard to the amount of costs;
	 
	19.1.22	 	not permit any increase in the stated project costs in the “Business Plan” without the
prior written consent of the “Banks” and the “Guarantors” unless the increased project costs
are financed by the “Sponsors” using subordinated loans/shareholder loans. “Borrower” shall
provide evidence to the “Agent” in satisfactory form in this case about the bearing of costs
by the “Sponsors”;
	 
	19.1.23	 	retain the “Debt Service Reserve” on the “Debt Service Reserve Account”;
	 
	19.1.24	 	apply the “Cash Flow from Operations” in accordance with the “Cash Flow Waterfall”;
	 
	19.1.25	 	comply with the requirements of the “Business Plan”;
	 
	19.1.26	 	establish and maintain a proper accounting department as well as an IT supported
controlling system which, among other items, is capable of providing a monthly comparison
between actual and planned numbers;
	 
	19.1.27	 	conclude the “Interest Hedge Agreement” by no later than before the first “Drawdown” and
provide evidence of this to the “Agent” without a separate request. The “Agent” will offer
“Borrower” corresponding interest hedging transactions upon its request;
	 
	19.1.28	 	to pledge to the “Banks” any unencumbered real estate and/or real estate to be acquired in
the future that is used or is to be used for operations.
	 
	 	 	The “Borrower” will inform the “Agent” about the acquisition of any real estate without
request and will comply with the first request of the “Agent” to pledge such real estate.;

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	19.1.29	 	not enter into any financial liabilities without the prior written consent of the “Banks”
and the “Guarantors” except for (a) financial liabilities under this Facility Agreement and
(b) shareholder loans/loans granted by “Sponsors” pursuant to the provisions in the “Sponsors’
Agreements”;
	 
	19.1.30	 	not grant any security rights over its respective assets or parts of the assets to third
parties or encumber the assets with security interests or other rights for the benefit of
third parties or permit the assets to be encumbered with security interests or other rights
for the benefit of third parties without the prior written consent of the “Banks” and the
“Guarantors”;
	 
	19.1.31	 	not sell any assets or otherwise provide them to third parties or undertake an obligation
for a sale or transfer of possession outside of the ordinary course of business without the
prior written consent of the “Banks” and the “Guarantors”;
	 
	19.1.32	 	not grant any loans, guarantees or similar instruments to third parties without the prior
written consent of the “Banks” and the “Guarantors”;
	 
	19.1.33	 	only use shareholder loans/loans from the “Sponsors” if the resulting payment and repayment
obligations are subordinated in a manner which is secure in the case of insolvency;
	 
	19.1.34	 	not make any repayments for shareholders loans/loans granted by the “Sponsors” or make
distributions of dividends always within ten “Banking Days” after a repayment date pursuant to
Clause 10.1 except from the “Surplus Cash Flow” in excess of 50 % of the respective “Surplus
Cash Flow”, for the first time from the “Surplus Cash Flow” determined on the basis of the
financial statements as of 31.12.2008 without the prior written consent of the “Banks” and the
“Guarantor”, provided that

	 	(a)	 	there is no event of default under Clause 20 nor a “Threatening Event of
Default” which exists or which would result from the corresponding payment,
	 
	 	(b)	 	the “Equity Ratio” is not drop below 30% and would not drop below such
threshold as a result of the corresponding payments, and
	 
	 	(c)	 	the “Debt Service Coverage Level” is not below the level of 1.3:1 and would
not drop below such threshold as a result of the corresponding payment.

	 	 	In case of a different repayment procedure the “Banks” and the “Guarantors” have to give
their written consent.
	 
	19.1.35	 	only make interest payments for shareholders loans/loans granted by the “Sponsors” or
payments based on management services, or “Royalty Payments” based on technical or other
services, except for management services under Clause 9.1.37, or other payments to one of the
“Sponsors”, except for payments under Clause 19.1.35, or payments to an “Affiliated
Enterprise”, except for payments pursuant to Clause 19.1.37, always within 10 “Banking Days”
after the payment date pursuant to Clause 10.1 and only according to the “Cash-Flow
Waterfall”, without the prior written consent of the “Banks” and the

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	 	 	“Guarantor” and no event of default under Clause 20 exists and no “Threatening Event of
Default” exists or would result from the corresponding payment;
 
	 	 	Interest payments to shareholders loans/loans granted by the “Sponsors” may not exceed the
standard market maximum.
	 
	 	 	In case of a different repayment procedure, the “Banks” and the “Guarantors” have to give
their written consent.
	 
	19.1.36	 	To make any interest payments based on management services always within 10 “Banking Days”
after a payment date under Clause 10.1 and always according to the “Cash-Flow Waterfall”,
provided that

	 	(a)	 	until the first determination of the financial figures under Clause 18.3 if
the “Project Appraiser” in the preceding “Project Progress Report” has declared a
delay of the “Schedule” or an exceed of the calculated costs of the “Project”
described in the “Business Plan”, and
	 
	 	(b)	 	at the beginning of the determination of financial figures under Clause 18.3,
if

	 	(i)	 	there is neither an event of default under Clause 20 nor a
“Threatening Event of Default” which exists or which would result from the
corresponding payment,
	 
	 	(ii)	 	the “Equity Ratio” is below 30% and would not drop under such
threshold as a result of the corresponding payments, and
	 
	 	(iii)	 	the “Debt Service Coverage Level” is not below the level of
1.3:1 and would not drop under such threshold as a result of the corresponding
payment.

	 	 	In case of a different repayment procedure, the “Banks” and the “Guarantors” have to give
their written consent.
	 
	19.1.37	 	Payments of license fees, registration fees or other fees to “Affiliated Enterprises”
always within 10 “Banking Days” after a “Payment Date” under Clause 10.1 but not before
calculating the Financial Numbers under Clause 18.3 and always according to the “Cash-Flow
Waterfall”, provided that

	 	(a)	 	there is neither an event of default under Clause 20. nor a “Threatening
Event of Default” which exists or which would result from the corresponding payment;
	 
	 	(b)	 	the “Equity Ratio” is below 30% and would not drop under such threshold as a
result of the corresponding payments, and
	 
	 	(c)	 	the “Debt Service Coverage Level” is not below the level of 1.3:1 and would
not drop under such threshold as a result of the corresponding payment;

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	 	 	In case of a different repayment procedure, the
“Banks” and the “Guarantors” have to give
their written consent.
	 
	19.1.38	 	not make any investments in assets or capital investments including lease financed
investments without the prior written consent of the “Banks” and the “Guarantors” unless the
following is involved:

	 	(a)	 	“Agreed Replacement and Expansion Investments” or
	 
	 	(b)	 	third party-financed investments in assets and capital investments if the
claims for payment and repayment of the third parties under the corresponding
financing agreements are subordinated to the claims of the “Agent” and the “Banks”
under this Facility Agreement in a manner which is secure in insolvency.

	20.	 	Event of Default

	20.1	 	The “Banks” are entitled to terminate this Facility Agreement if one of the following
circumstances occurs and the additional preconditions in (i) and (ii) as set forth in Clause
20.2 exists:
	 
	20.1.1	 	the “Borrower” or a “Sponsor” does not comply with its payment obligation under one of the
“Contract Documents” when due;
	 
	20.1.2	 	proceeds from the “Loans” are used in a manner other than the purpose foreseen for the
respective “Loan” in Clause 3, or the achievement of the intended use of the funds is
precluded;
	 
	20.1.3	 	one of the representations and warranties made in Clause 16 (Representations and Warranties)
turns out to have been incorrect from the very beginning or becomes subsequently incorrect or
the “Borrower” cannot make a representation and warranty at the point in time contemplated in
Clause 16.2 of this Facility Agreement;
	 
	20.1.4	 	the “Borrower” does not comply with a covenant or condition under Clause 19 (Covenants and
Conditions) or any other condition or covenant under the “Contract Documents” and this results
in a “Material Adverse Change”;,
	 
	20.1.5	 	the “Borrower” does not comply with a covenant or condition under Clause 13 (Accounts),
Clause 17 (Obligations to provide Information) or Clause 18 (Key Financial Figures) or any
other obligation or condition under the “Contract Documents”;
	 
	20.1.6	 	a “Sponsor” does not comply with an obligation under the “Contract Documents”;
	 
	20.1.7	 	a declaration made by the “Borrower” or a “Sponsor” which is considered fundamental by the
“Banks” for granting the “Loans” or information provided by the “Borrower” or a “Sponsor”
turns out to be wrong, misleading or incomplete;
	 
	20.1.8	 	insolvency proceedings or comparable proceedings under the respective applicable system of
law are commenced over the assets of the “Borrower” or a “Sponsor” or one of

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	 	 	these companies seizes to make its payments or commences out of court negotiations on
extending payment terms with its creditors or is over-indebted;
 
	20.1.9	 	liquidation proceedings are resolved or initiated with regard to the “Borrower” or a
“Sponsor” or one of these companies ceases to conduct its business;
	 
	20.1.10	 	insolvency proceedings or comparable proceedings under the respectively applicable system
of law are applied for or commenced over the assets of one or more of the contracting parties
of the “Borrower” under the “Project Contracts” or the liquidation of such a contracting party
is resolved or initiated and results in “Material Adverse Change”;
	 
	20.1.11	 	the “Borrower” or the “Sponsors” give up on the “Project” or change it fundamentally;
	 
	20.1.12	 	a “Security” is not validly established in a binding and enforceable manner or its legal
validity, binding nature and enforceability is disputed by the respective party obliged under
the “Security” or the realization of a “Security” is precluded or endangered or the value of a
“Security” is reduced;
	 
	20.1.13	 	one or more “Project Agreements” are or become completely or partially invalid or are
terminated prematurely or amended and this leads to a “Material Adverse Change”;
	 
	20.1.14	 	a performance default under a “Project Contract” occurs which leads to a “Material Adverse
Change”;
	 
	20.1.15	 	the “Project” is delayed for a period of more than three months compared to the “Schedule”
and this delay is confirmed by the “Project Appraiser”;
	 
	20.1.16	 	a “Permit” required for the “Project” at the relevant point in time or for the respective
business operations of the “Borrower” is not granted at all or not granted in a timely manner
or is granted with modifications, conditions, deadlines or imposed terms or is completely or
partially withdrawn or amended and this event or the action results in a “Material Adverse
Change”;
	 
	20.1.17	 	the “Subsidy Order”, the “Deficiency Guarantee” or the “EU Decision” are cancelled, amended
or withdrawn;
	 
	20.1.18	 	the “Borrower” is in default with an undisputed payment obligation (except for payment
obligations under the “Contract Documents”) towards a third party in an amount of more than
EUR 100,000 or a “Sponsor” is in default with an undisputed payment obligation (except for
payment obligations under the “Contract Documents”) in favor of third parties in a total of
more than EUR 500,000;
	 
	20.1.19	 	proceedings before a court, an arbitral tribunal or an administrative authority are
commenced against the “Borrower” or a “Sponsor” which if decided against the respective party
would lead to a “Material Adverse Change” unless the “Borrower” or the “Sponsor” demonstrates
without undue delay to the satisfaction of the “Agent” that these proceedings are an abuse of
right, inadmissible or unfounded or can be avoided by

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	 	 	other measures. A “Material Adverse Change” in the context of
this Clause 20.1.9 exists especially if the amount in
controversy of all pending legal disputes exceeds in the
aggregate for each “Borrower” or “Sponsor” EUR 2,000,000; or
 
	20.1.20	 	a “Material Adverse Change” occurs; or
	 
	20.1.21	 	the “Shareholders” resolve a reduction of registered capital and distribution of the amount of the reduction.
	 
	20.2	 	If there is an event of default, the “Agent” in
favor of the “Banks” is entitled,

	 	(a)	 	to completely or partially terminate with immediate effect the “Loans” which
have not yet been drawn down or which have been used and/or
	 
	 	(b)	 	to demand immediate payment of all or part of the outstanding amounts of the
“Loans” together with the respective accrued interest and all other amounts to be paid
under this Facility Agreement and/or
	 
	 	(c)	 	to realize the “Securities”

	 	 	and especially:

	 	(i)	 	in the case of an event of default under Clause 20.1.1, if the default in
payment completely or partially continues to exist after the expiration of five
“Banking Days” since the date of a payment demand by the “Agent” to the respective
party owing the payment, and
	 
	 	(ii)	 	in all other cases of Clause 20.1 and in which the type of event of default
permits a cure by the respective “Borrower” or the respective “Sponsor”, if the event
of default completely or partially continues to exist after expiration of 20 “Banking
Days” since the date of a notice from the “Agent” to the party about the existence of
the event of default, and
	 
	 	(iii)	 	in all other cases of Clause 20.1 and in which the type of event of default
permits a cure by the respective “Borrower” or the respective “Sponsor”, immediately
after the occurrence of the respective termination cause whereby the “Banks” are
obliged to prove that it was impossible to cure the respective termination cause.

	21.	 	Agents and Banks

	21.1	 	The leadership of the banking syndicate is the responsibility of the “Agent”. In the course
of leading the syndicate, the “Agent” will make all decisions required for a proper
administration of the credit relationship in the normal course of business independently
according to its reasonable discretion unless expressly provided otherwise in this Facility
Agreement.

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	21.2	 	Each “Bank” hereby grants power of attorney to the “Agent” to represent it towards the
“Borrower”, the “Sponsors” and third parties in connection with the “Loans” in the context of
the provisions in the “Contract Documents”.
	 
	21.3	 	The “Agent” is not authorized without the prior written consent of the respective “Bank” to
file a lawsuit in the name of the “Bank” or commence any other court proceedings in the name
of the “Bank”.
	 
	21.4	 	The “Banks” hereby appoint the “Agent” as their “Security Agent” and authorize the “Agent” as
such to exercise the rights and powers of attorney and make the discretionary decisions which
the “Security Agent” is responsible for under the “Contract Documents”. The provisions in this
Clause 21 relating to the “Agent” apply accordingly for the “Security Agent”.
	 
	21.5	 	To the extent legally permissible, each “Bank” hereby releases the “Agent” from the
restrictions of “181 BGB with regard to the powers of attorney which are granted to the
“Agent” under the “Contract Documents”.
	 
	21.6	 	Notwithstanding the provisions contained in this Facility Agreement on the reporting
obligations, the “Agent” will forward to the “Banks” all material information and notices
which the “Agent” receives from one of the other parties to this Facility Agreement.
	 
	21.7	 	The “Agent” will represent the interests of the “Banks” with the care of a prudent
businessman. The liability of the “Agent” for actions or omissions in connection with the
“Contract Documents” is limited to intentional misconduct and gross negligence.
	 
	21.8	 	The “Agent” acts exclusively as the leader of the syndicate of the “Banks” when performing
its obligations under the “Contract Documents” and not as a representative or agent for the
“Borrower”. The “Agent” is not liable to the “Borrower” or the other “Banks” for the
performance of the obligations by the respective other party.
	 
	21.9	 	As syndicate leader for the “Banks”, the “Agent” will act through a special unit which is
responsible for the leadership of the syndicate in connection with the “Contract Documents”.
This unit will be treated as independent from the other departments and working units of the
“Agent”. Knowledge in another department or working unit of the “Agent” can be treated as
confidential by these departments or working units and will not be attributed to the “Agent”
in its function as leader of the syndicate under the “Contract Documents”.
	 
	21.10	 	The “Agent” is not required

	 	(a)	 	to determine whether the “Borrower” or the “Sponsors” have complied with
their obligations under the “Contract Documents” or whether an event of default exists
or is threatening,
	 
	 	(b)	 	to examine the completeness and correctness of all notices under this
Facility Agreement,

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	 	(c)	 	to examine the possibility for the collect ability of any type of payments of
money which are or become due under the present Facility Agreement,
	 
	 	(d)	 	to examine the creation of the “Securities”, their enforceability or value,
or
	 
	 	(e)	 	to examine the legal validity, reasonableness or completeness of the
“Contract Documents”.

	21.11	 	Each “Bank” assures that it has independently examined the “Project” and the credit
worthiness of the “Borrower” without having relied on any examination by the “Agent”. Each
“Bank” is signing this Facility Agreement on the basis of its own independent examination and
will in the future base its decisions about actions or omissions under this Facility Agreement
on its own examination which it considers reasonable. Each “Bank” hereby confirms its
agreement with the “Contract Documents”.
	 
	21.12	 	Unless otherwise expressly stated, the “Agent” exercises the rights and authorities in
connection with the “Contract Documents” in accordance with the instructions of the “Majority
of Banks” and is not subject to any liability towards the “Banks” to the extent the “Agent”
complies with these instructions. The “Agent” has the right at any time to obtain the consent
of the “Banks” to a specific measure. An instruction by the “Majority of Banks” is not
required if there is an urgent situation.
	 
	21.13	 	Each “Bank” will compensate the “Agent” or indemnify the “Agent” against corresponding
liabilities upon the request of the “Agent” for all damages and expenses (including value
added tax) incurred in connection with the “Contract Documents” unless the respective damages
and expenses are the result of an intentional or grossly negligent violation of duties on the
part of the “Agent”. The individual “Banks” are liable proportionately according to their
respective “Quota”.
	 
	21.14	 	If the “Agent” has not received any written notice from the “Borrower” or a “Bank” that a
payment will not be made to the “Agent” two “Banking Days” prior to the payments under this
Facility Agreement becoming due, the “Agent” can assume that the payment will be made on the
due date. The “Agent” is entitled, but not required to pay the corresponding amount to the
“Borrower” and/or the “Banks”. If it turns out on the due date that the payment was in fact
not rendered, the respective recipient of the payment will repay this amount together with the
refinancing costs of the “Agent” to the “Agent” without undue delay upon its request.
	 
	21.15	 	The syndicate relationship between the “Agent” and the “Banks” end only after complete
satisfaction of all claims under this Facility Agreement. To the extent that “Securities” are
realized, the syndicate relationship only ends upon conclusion of the realization and/or the
distribution of any proceeds.
	 
	21.16	 	During the course of the syndicate relationship, regular notice of termination of the
syndicate relationship is excluded; the right to terminate for just cause remains unaffected.
If a “Bank” terminates its participation for just cause or leaves the syndicate for other
reasons, the syndicate relationship will be continued among the remaining “Banks”.

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	 	 	If the “Agent” leaves the syndicate relationship, the remaining “Banks” will assign the
leadership of the syndicate under this Facility Agreement to one of the other “Banks” with
a “Majority of the Banks”.
	 
	21.17	 	The “Agent” can designate a new branch or branch office in the European Union to the
“Borrower” and the “Banks” from which the “Agent” will perform its obligations under this
Facility Agreement. The law applicable to this Facility Agreement remains unaffected by this.
	 
	21.18	 	To the extent that the “Agent” is indemnified against liability pursuant to this Clause 21,
this indemnity only applies in the relationship between the “Agent” and the “Banks”. The
liability of the “Borrower” is not affected by this.

	22.	 	Resignation and Removal of the “Agent”

	22.1	 	The “Agent” can withdraw at any time from its appointment under this Facility Agreement by
written notice to the other Parties to this Facility Agreement.
	 
	 	 	The “Agent” can be removed by a resolution of the “Majority of Banks” from its duties under
this Facility Agreement by written notice given to the “Borrower” and the “Agent”.
	 
	 	 	The withdrawal or the removal takes effect upon notice about the appointment of a successor
pursuant to Clause 22.3.
	 
	22.2	 	In the event of a withdrawal or the removal of the “Agent”, the “Majority of Banks” is
entitled on costs of the “Banks” to appoint a successor for the position of “Agent” with the
agreement of the “Borrower.” If such a successor has not been appointed within 30 “Banking
Days” after the notice about the withdrawal or the removal, the “Agent” is entitled to
designate another corresponding financial institution as its successor upon agreement with the
“Borrower” which has at least a rating of “A” issued by Standard & Poor’s Ratings Groups.
	 
	22.3	 	The acceptance of the appointment will be notified to the “Agent” by the “Bank” appointed by
the “Majority of Banks” for this purpose.
	 
	22.4	 	After the notice has been given, the successor will succeed the “Agent” and will receive all
rights, authorities, priority rights and obligations of its predecessor. The “Agent” which has
withdrawn or been removed from its function will take all necessary action in order to cause
the succession to be valid. The “Agent” will then be released from its obligations under this
Facility Agreement, whereby the indemnity in Clause 21 (Agents and Banks) with regard to such
acts or omissions which the “Agent” performed in its function as “Agent” will continue to
apply.

	23.	 	Sharing Clause

	23.1	 	If a “Bank” has received or collected at any time an amount relating to its participation in
the “Loans”, which amount exceeds the amount this “Bank” should have received from

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	 	 	the “Agent” if a distribution had taken place pursuant to the procedure set forth in Clause
14.3 and Clause 14.4 (the “Excess Amount”) at any point in time, then this “Bank” must
immediately inform the “Agent” about this and must pay the “Excess Amount” to the “Agent”
within three “Banking Days” after this notice.
 
	 	 	The “Agent” will then distribute the “Excess Amount” to the “Banks” (except for that “Bank”
which received the “Excess Amount”) to that these obtain satisfaction proportionately
according to their “Quota” and pursuant to Clause 14.3 and Clause 14.4.
	 
	 	 	The “Banks” will adjust the liabilities of the “Borrower” corresponding to the
distribution of the “Excess Amount” among them. If the “Excess Amount” is subsequently
completely or partially repaid to the “Borrower” by the “Bank” which had originally
received the “Excess Amount”, each of the “Banks” will forward the share in the “Excess
Amount” which it had received from the “Agent” to the “Agent” so that it can be repaid to
the “Bank” which is required to make the repayment.
	 
	23.2	 	A “Bank” is not required to surrender the “Excess Amount” if it has been awarded this amount
in the context of court proceedings which the other “Banks” did not join although they had the
opportunity to do so.
	 
	23.3	 	The right of each “Bank” to engage in banking transactions outside of this Facility Agreement
with the “Borrower” or with affiliated enterprises within the meaning of § 15 German Stock
Companies Act (Aktiengesetz) remains unaffected.

	24.	 	Fees

	 	 	The “Borrower” pays
	 
	24.1	 	a one-time processing fee pursuant to the “Fee Letter” to the “Agent” upon its request;
	 
	24.2	 	an administrative fee pursuant to the “Fee Letter” annually on each 30 June to the “Agent”
upon its request;
	 
	24.3	 	a commitment fee in the amount of 0.6% annually of the nominal amount of the “Loan” which
has not been drawn down to the “Agent” which will be forwarded to the “Banks”. The commitment
fee is calculated by the “Agent” as of the date on which this Facility Agreement is signed.
	 
	 	 	The commitment fee is payable in arrears on each 31.03, 30.06, 30.09 and 30.12 of each year
upon request of the “Agent”;
	 
	24.4	 	a Waiver Fee in the amount of EUR 2,500 per “Bank” and EUR 5,000 for the “Agent” to the
“Agent” for proportionate allocation to the “Banks” for each amendment to the contract or
declaration of waiver made on the request of the “Borrower”;
	 
	24.5	 	a surety compensation to the “Guarantors” in the amount of currently 0.8 % annually on the
“Surety Amount” to be determined pursuant to Clause 24.6. The surety compensation is first due
upon handing over the surety document and is to be paid on each 1.04 and

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	 	 	1.10 of each calendar year and at the last time for the calendar year in which the surety
document is returned as no longer being needed or in which the “Agent” has submitted the
loss report to “PwC” after a claim has been asserted against the “Guarantors”.
	 	 	Payment of the surety compensation must be evidenced to the “Agent” in each case without
undue delay.
	 
	24.6	 	The “Surety Amount” in the calendar year 2006 is EUR 64,035,200 and is reduced for the “Term
Loan” by the repayment installments made and for the “Revolving Loan” from 30 June 2010 by
13.33 percentage points semi-annually.

	25	 	Third Party Costs and Disbursements 

	25.1	 	The “Borrower” bears all adequate external costs and other expenses which the “Agent” or the
“Banks” incur in connection with the drafting, the conclusion or the amendment of the
“Contract Documents”, especially for retaining external consultants and attorneys and/or for
the activities of notaries.
	 
	25.2	 	The “Borrower” bears all costs and disbursements, which the “Agent” and/or a “Bank” incur in
connection with maintaining and/or enforcing the rights under the “Contract Documents”.
	 
	25.3	 	The “Agent” receives compensation in the amount of EUR 500 for each confirmation of account
balances prepared at the request of the “Borrower” or its accountants.
	 
	25.4.1	 	The “Borrower” will reimburse each of the “Banks” the costs they incur in the course of an
official audit resulting from the activities of the “Borrower” in connection with this
Facility Agreement.
	 
	 	 	Upon the “Agent’s” request, the “Borrower” will reimburse the “Guarantor” for the costs of
an audit in accordance with Clauses 17 and 18 of the “General Terms and Conditions for the
Assumption of Guarantees by the Federal Republic of Germany (the Bund) and States issuing
Parallel Guarantees”(“Allgemeinen Bestimmungen für Bürgschaftsübernahmen durch die
Bundesrepublik Deutschalnd (Bund) und parallel bürgender Bundesländer”).

	26.	 	Substitute Performance

	 	 	The “Borrower” is obligated to reimburse each “Bank” for those losses and costs which are
incurred as a result of the “Bank” having refinanced a “Drawdown” requested by a “Borrower”
without being able to pay out this amount because the preconditions established in this
Facility Agreement for the “Drawdown” have been completely or partially not fulfilled or
are no longer fulfilled.

	27.	 	Assignments and Transfers

	27.1	 	The “Borrower” is not permitted to assign rights and claims under the “Contract Documents” to
third parties without the prior written consent of the “Agent”.

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	27.2	 	A “Bank” can completely or partially transfer the economic risk of granting the “Loans” to
third parties; this can, for example, take place by way of credit derivatives, pledges,
assignment of the loan claims, transfers of contract, including with all relevant security or
by loan sub-participations.
	 
	 	 	A third party within the meaning of this provision can only be a member of the European
system of central banks, a credit institution, a financial services institution, a
financial enterprise, a pension organization [Versorgungswerk/Pensionskasse] or a capital
investment company which is subject to supervision by the Federal Agency for Supervision of
Financial Services [Bundesanstalt für Finanzdienstleistungsaufsicht] or another state
supervisory authority or a comparable foreign supervisory authority as well as a single
purpose company which is required in order to structure the transfer of the risk.
	 
	27.3	 	A “Transfer” of rights and claims is only permissible if the amount to be transferred is at
least EUR 5,000,000. The amount to be transferred is to be allocated proportionately to the
already drawn down portion of the “Loans” and the portion of the “Loans” of the “Old Bank”
which has not yet been paid out.
	 
	27.4	 	The “Transfer needs the consent of the “Borrower”. The “Borrower” shall give its consent to
the “Transfer”, if the “New Bank” is a bank or a third party which has at least a rating of
“A” issued by Standard & Poor’s Ratings Groups or a similar rating issued by another rating
agency.
	 
	27.5	 	The “Transfer” takes effect upon countersignature by the “Agent” on the transfer contract
which contains at least the clauses outlined in the form of Annex 10 (Transfer Agreement).
	 
	 	 	The “Agent” shall inform the “Borrower” regarding the taking effect of the “Transfer”.
	 
	27.6	 	Each “Transfer” requires the “New Bank” to pay a fee in the amount of EUR 5,000 to the
“Agent” which is due upon the “Transfer” taking effect.
	 
	27.7	 	Upon the “Transfer” taking effect, the “New Bank” will become a “Bank” within the meaning of
this Facility Agreement. The “New Bank” will pay the “Old Bank” the amount set forth in the
Transfer Agreement pursuant to Annex 10 (Transfer Agreement) on the date set forth there.
	 
	27.8	 	The “Borrower”, “FS GmbH” and “FS Holdings” will use their best efforts to support the
“Banks” in their actions pursuant to Clause 27.2 in order to secure the success of these
measures.

	28.	 	Confidentiality

	28.1	 	The “Agent” and the “Banks” will maintain confidentiality about all written or oral
information provided to them by the “Borrower”, “FS GmbH” and “FS Holdings”.

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	28.2	 	It does not constitute a violation of this obligation of confidentiality if information is
forwarded to

	 	(a)	 	third parties within the meaning of Clause 27.2 of this Facility Agreement in
the context of taking the measures contemplated in Clause 27.2 if the recipient is
required to treat the information as confidential,
	 
	 	(b)	 	members of management bodies, agents, attorneys, accountants, rating agencies
or other consultants of the “Agent” or of one of the “Banks” if the recipient is
required to treat the information as confidential based on a written confidentiality
agreement or
	 
	 	(c)	 	public authorities or courts on the basis of a corresponding order, mandatory
legal provisions or in the context of court proceedings.

	29.	 	Rebuttable Presumptions 

	 	 	All confirmations, determinations and bookings by the “Agent” or a “Bank” with regard to an
interest rate or an amount of money in the context of the “Contract Documents” establishes
the rebuttable presumption that it is correct unless there is an obvious error.

	30.	 	Statements pursuant to § 8 of the Money Laundering Act (Geldwäschegesetz)

	 	 	The “Borrower” declares by their countersignature under this Facility Agreement that they
have acted for their own account with regard to the drawing of the “Loans”.

	31.	 	Requirement of Written Form, Amendments to the Facility Agreement

	31.1	 	Each change or supplement to this Facility Agreement requires written form in order to be
valid to the extent that the law does not require a stricter form. This also applies to any
amendments to this clause on written form.
	 
	31.2	 	The “Agent” can agree on changes and supplements to this Facility Agreement and can waive the
exercise of rights or the compliance with obligations under this Facility Agreement with
regard to the “Borrower” in the name of the “Banks” with the prior consent of the “Majority of
Banks”.
	 
	31.3	 	The prior consent of all “Banks”, which the “Agent” will obtain, is required for

	 	(a)	 	each amendment of Clause 27.1 or this Clause 31.3;
	 
	 	(b)	 	extensions of time or other changes in dates for payment of interest or
principal;
	 
	 	(c)	 	an increase in the amount of the loan or a reduction of amounts payable under
this Facility Agreement;
	 
	 	(d)	 	a waiver of or other change in preconditions for drawing down under this
Facility Agreement;

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	 	(e)	 	the release of a “Security”;
	 
	 	(f)	 	an amendment to the event of default set forth in Clause 20.1;
	 
	 	(g)	 	an amendment to the definition of “Majority of Banks”; or
	 
	 	(h)	 	other measures to the extent that this is expressly set forth in this
Facility Agreement.

	32.	 	Exercise of Rights, Severability Clause

	32.1	 	If the “Agent” and/or the “Banks” waive the exercise of rights under this Facility Agreement
in a specific case, this does not affect the assertion of other rights. A waiver by the
“Agent” or one of the “Banks” is only valid if it has been notified to the “Borrower” in
writing.
	 
	32.2	 	If a provision in this Facility Agreement is or becomes invalid or unenforceable, this does
not affect the other provisions. The invalid or unenforceable provision will be replaced by
another valid and enforceable provision which the Parties would have agreed to if they had
given thought upon conclusion of this Facility Agreement to the invalidity or the
unenforceability of the respective provision and which corresponds to the intent of the
Parties in light of the purpose of this Facility Agreement. The above provision applies
accordingly if this Facility Agreement does not cover a subject.

	33.	 	Rights of Set-Off and Retention

	 	 	A right of set-off and retention for the “Borrower” does not exist unless the claim of the
“Borrower” has been determined by a final judgment or if it is not disputed by either the
“Agent” or the “Banks”.

	34.	 	Notices

	 	 	Each notice under or in connection with this Facility Agreement should be issued in writing
and must be transmitted either personally or by mail, e-mail or by fax to the following
contact addresses:
	 
	 	 	To the “Borrower”:
	 
	 	 	First Solar Manufacturing GmbH

Marie-Curie-Str. 3

15236 Frankfurt (Oder)
	 
	 	 	Attn.: Karlheinz Harz

Tel.: 06131-1443300

Fax.: 06131-144500

e-mail: kharz@firstsolar.com

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	 	 	To the “Agent”, the “Security Trustee” and/or the “Banks”
	 
	 	 	IKB Deutsche Industriebank AG

Strukturierte Finanzierung

Transaktionsmanagement

Wilhelm-Bötzkes-Straße 1

40474 Düsseldorf
	 
	 	 	To.: Ms. Britta Bernhard

Tel.: 0211-8221-4849

Fax.: 0211-8221-2849
	 
	 	 	Email: Britta.Bernhard@ikb.de
	 
	 	 	Changes in the contact addresses must be notified to the “Agent” by giving two weeks
advanced notice. The “Agent” will inform the other Parties to this Facility Agreement about
the change without undue delay.
	 
	 	 	The change of a contact address to a foreign country requires the prior written consent of
the “Agent”.

	35.	 	Jurisdiction, Applicable Law

	35.1	 	Exclusive jurisdiction for all disputes under or in connection with this Facility Agreement
is Düsseldorf. This does not affect different mandatory statutory jurisdictions.
	 
	35.2	 	This Facility Agreement is subject to the laws of the Federal Republic of Germany.

	36.	 	Provisions on Guarantors

	 	 	The guarantee decision attached as Annex 6a (Decision on the approval of the deficiency
guarantees) is an integral part of this Agreement. All provisions and obligations to be
imputed to the Facility Agreement in accordance with the Guarantee Decision are herewith
agreed upon, even if they are not separately indicated in the Facility Agreement. In case
of doubt and any contradictions to other provisions of the Facility Agreement, the
guarantee decision shall prevail.
	 
	 	 	As a supplement to the provisions contained in this Facility Agreement, the terms and
conditions for the “Deficiency Guarantee” including the “General Terms and Conditions for
Assuming Guarantors by the Federal Republic of Germany and Parallel Guarantors issued by
the States” (Allgemeinen Bestimmungen für Bürgschaftsübernahmen durch die Bundesrepublik
Deutschland (Bund) und parallel bürgender Bundesländer) pursuant to Annex 6b.
	 
	 	 	The guarantors have the right to engage commissioned parties in the administration of the
“Deficiency Guarantees”.

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	Düsseldorf, on

	 	Düsseldorf, on
	 
	 	 
	 

	 	 
	First Solar Manufacturing GmbH

	 	IKB Deutsche Industriebank AG
	, on

	 	, on
	 
	 	 
	 

	 	 
	First Solar GmbH

	 	First Solar Holdings GmbH

47

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