Document:

EX-4.8

 

Exhibit 4.8

Cognovit Term Note

 

					
	$8,700,000
	 	Perrysburg, Ohio
	 	May 14, 2003
	 	 	 	 	 

FOR VALUE RECEIVED, First Solar Property, LLC, a Delaware limited liability company, having an
address of 28101 Cedar Park Blvd., Perrysburg, Ohio, 43551 (the “Borrower”), hereby promises to pay
to the order of Kingston Properties, LLC, a limited liability company organized under the laws of
Wyoming, with an address of PO Box 1860 Bentonville, AR 72712, (the “Lender”) the sum of Eight
Million Seven Hundred Thousand Dollars ($8,700,000) plus interest from this date until fully paid.

     1. Interest. Borrower shall pay interest on the outstanding principal balance hereof
at a rate per annum equal to three and seven tenths percent (3.7%). Borrower shall pay interest on
any amounts not paid when due, and on any judgment on this Note, at the default rate of interest
(the “Default Rate”) equal to four percent (4%) per annum plus the rate of interest otherwise
payable on this Note. Interest shall be calculated based on the actual number of days elapsed over
a 360-day year (365/360 method).

     2. Payments. Commencing on the 1st day of June 2003, and continuing on the same day
of each of the next eighty-three (83) consecutive months thereafter, Borrower shall make monthly
payments of interest on amounts outstanding under this Note. On June 1, 2010, (the “Maturity
Date”), all outstanding principal and all interest, accrued but unpaid, shall be due and payable.

     3. Place of Payment. Borrower shall make all payments on this Note at Lender’s
address at PO Box 1860 Bentonville, AR 72712, or at such other place as the Lender may from time to
time designate.

     4. Prepayment. Borrower may make prepayments of principal in whole or in part at any
time with no prepayment premium.

     5. Late Charge. Borrower acknowledges that default in any payment due under this Note
will result in loss and additional expense to Lender in handling such delinquent payments and
meeting its other financial obligations, and in that such loss and additional expense is extremely
difficult and impractical to ascertain, Borrower agrees that if any payment hereunder is not paid
within ten (10) days when first due, Borrower shall pay a late charge equal to five percent (5%) of
the amount of the overdue payment.

     6. Application of Payments. Unless Lender elects otherwise, all payments and other
amounts received by Lender shall be credited first to any charges, costs, expenses and fees due
hereunder or payable by Borrower under the Mortgage; second to interest on the foregoing amounts at
the Default Rate from the due date or date of payment by Lender, as the case may be; third to
accrued but unpaid interest on this Note; fourth, to the principal amount outstanding under this
Note; and the balance, if any, to Borrower.

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     7. Default. Borrower’s failure to pay any amount when due hereunder or its failure to
perform any other obligation to Lender of any nature or type shall constitute an Event of Default
hereunder. Without limiting the generality of the foregoing, a default under any other document
executed by or on behalf of the Borrower in favor of Lender (each a “Loan Document”) shall also
constitute a default hereunder.

     8. Acceleration, Remedies. Upon the occurrence of any Event of Default, in addition
to any and all other remedies under any security for or guarantee of this Note, together with any
and all remedies at law or in equity, at the option of Lender the outstanding principal balance of
this Note and all accrued and unpaid interest thereon and all other amounts payable by Borrower to
Lender of every nature and type shall be immediately due and payable, and all such amounts shall
bear interest at the Default Rate from the date of the Event of Default until paid. Lender may
exercise any and all remedies without notice or demand of any kind which are hereby waived by
Borrower.

     9. Governing Law. This Note shall be construed under the laws of the State of Ohio.

     10. Time is of the Essence. Time is of the essence in the payment of this Note.

     11. Waivers. None of the following shall constitute a course of dealing, estoppel,
waiver or the like on which any party to this Note or any document providing security for or
guaranty of repayment of this Note may rely: (a) Lender’s acceptance of one or more late or partial
payments; (b) Lender’s forbearance from exercising any right or remedy under this Note or any Loan
Document; or (c) Lender’s forbearance from exercising any right or remedy under this Note or any
Loan Document on any one or more occasions. Lender’s exercise of any rights or remedies or a part
of a right or remedy on one or more occasions shall not preclude Lender from exercising the right
or remedy at any other time. Lender’s rights and remedies under this Note, any Loan Documents, and
the law and equity are cumulative to, but independent of, each other.

     12. Representations. Each party to this Note and each Loan Document: (a) acknowledges
that Lender would not have extended the credit evidenced by this Note and will not continue to
extend the credit but for the joint and several obligations of each; (b) warrants that each has
executed this Note or a Loan Document to induce Lender to extend and to continue to extend the
credit; (c) warrants that each has received good and valuable consideration for executing this Note
or any Loan Document; and (d) warrants that none have executed this Note or any Loan Document in
reliance upon the existence of any security for or guaranty or promise of the payment of this Note.

     13. Indulgences. Without notice, Lender may do or refrain from doing anything
affecting this Note or any Loan Document, as many times as Lender desires, including the following
(a) granting or not granting any indulgences to anyone liable for payment of this Note or to anyone
liable under any Loan Document; (b) releasing any security or anyone or any property from liability
on this Note or any Loan Document; and (c) amending this Note or any Loan Document, including
extending the time for payment of this Note.

Page 2 of 4

 

     14. No Release of Liability. No obligations of any party to this Note shall be
affected by (a) any default in this Note or any Loan Document when accepted by Lender or arising
any time thereafter; (b) the unenforceability of or defect in this Note or in any Loan Document or
any interest conveyed by any Loan Document; (c) any decline in the value of any interest in any
property conveyed by any Loan Document; or (d) the death, incompetence, insolvency, dissolution,
liquidation or winding up of affairs of any party to this Note or any Loan Document or the start of
insolvency proceedings by or against any such party. EACH PARTY TO THIS NOTE AND EACH LOAN
DOCUMENT WAIVES ALL SURETYSHIP AND OTHER SIMILAR DEFENSES. No party to this Note or any Loan
Document may enforce any right of subrogation or contribution unless and until this Note is paid in
full and waives all rights of subrogation against any party that is subject to insolvency
proceedings.

     15. Jury Trial Waiver. The Borrower hereby waives any right to a trial by jury in
any action to enforce or defend any matter arising from or related to this Note, or any document or
agreement evidencing the balance due under this Note and/or relating to this Note.

     16. Notices. All notices, demands, requests and consents (hereinafter “notices”)
given or made pursuant to this Note shall be in writing, shall be addressed to the addresses set
forth in the introductory paragraph hereof or such other address as either party may designate for
itself by a notice complying with this Section, and shall be served by: (a) personal delivery; (b)
United States mail, postage prepaid; or (c) nationally recognized overnight courier service. All
notices shall be deemed to be given upon the earlier of actual receipt, three (3) days after
mailing or one (1) business day after deposit with the overnight courier. Any notices meeting the
requirements of this Section shall be effective, regardless of whether or not actually received.

     17. Representation and Warranty Regarding Business Purpose. Borrower represents and
warrants that the loan evidenced by this Note is for business purposes and not for personal,
family, household, or agricultural purposes.

     18. Security and Guaranties. This Note is secured by an Open End Mortgage, and
Assignment of Rents and Leases, Security Agreement and Financing Statement of even date herewith
between the Borrower and the Lender granting to the Lender a first and best mortgage on the real
estate described therein.

     19. Waiver of Demands. Each party to this Note jointly and severally waives
presentment, dishonor, notice of dishonor, protest, noting for protest, all other notices, and all
demands.

     20. Attorneys’ Fees and Expenses. After an Event of Default has occurred or has been
declared, Borrower shall pay to Lender all reasonable costs and expenses incurred by Lender in
enforcing or preserving Lender’s rights under this Note or any Loan Document, (regardless of
whether such Event of Default is subsequently cured) including but not limited to, (a) attorneys’
and paralegals’ fees and disbursements; (b) the fees and expenses of any litigation,
administrative, bankruptcy, insolvency, receivership and any other similar proceeding; (c) court
costs; (d) the expenses of Lender, its employees, agents, attorneys and witnesses in preparing for

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litigation, administrative, bankruptcy, insolvency and other proceedings and for lodging, travel,
and attendance at meetings, hearings, depositions, and trials; and (e) consulting and witness fees
incurred by Lender in connection with any litigation or other proceeding.

     21. Severability. If any clause, provision, section or article of this Note is ruled
invalid by any court of competent jurisdiction, the invalidity of such clause, provision, section,
or article shall not affect any of the remaining provisions hereof. In the event that any interest
rate (including the Default Rate) applicable to this Note exceeds the maximum interest rate
permissible by law, this Note shall bear interest at the highest rate permissible by law.

     22. Assignment. Borrower shall neither assign its rights nor delegate its obligations
under this Note.

     23. Warrant of Attorney. With full knowledge of all constitutional rights, Borrower
hereby authorizes any attorney-at-law to appear on Borrower’s behalf in any court of record in the
State of Ohio after this Note becomes due and payable, whether by acceleration or otherwise; to
waive the issuing and service of process and all other constitutional rights to due process of law;
to waive all conflicts of interest; to confess a judgment against Borrower in favor of Lender for
the amount then appearing due together with the costs of suit; to release all errors; and to waive
all rights of appeal and stays of execution. With full knowledge of all constitutional rights,
Borrower hereby voluntarily and knowingly waives all rights to notice and hearing prior to judgment
being so confessed against Borrower.

          WARNING — BY SIGNING THIS PAPER YOU GIVE UP YOUR RIGHT
TO NOTICE AND COURT TRIAL. IF YOU DO NOT PAY ON TIME A
COURT JUDGMENT MAY BE TAKEN AGAINST YOU WITHOUT YOUR
PRIOR KNOWLEDGE AND THE POWERS OF A COURT CAN BE USED
TO COLLECT FROM YOU REGARDLESS OF ANY CLAIMS YOU MAY
HAVE AGAINST THE CREDITOR, WHETHER FOR RETURNED GOODS,
FAULTY GOODS, FAILURE ON ITS PART TO COMPLY WITH THE
AGREEMENT, OR ANY OTHER CAUSE.

	 	 	 	 	 
	 	First Solar Property, LLC

 	 
	 	By  	/s/ George A. (“Chip”) Hambro
 	 
	 	 	Vice President and Secretary 	 
	 	 	 	 
	 

Page 4 of 4EX-4.9

 

Exhibit 4.9

Face of Note

NEITHER THE SECURITY REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES ISSUABLE UPON CONVERSION
HEREOF, HAS BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR QUALIFIED UNDER
APPLICABLE STATE SECURITIES LAWS. THIS SECURITY AND THE SECURITIES ISSUABLE UPON ITS CONVERSION MAY
BE OFFERED, SOLD OR TRANSFERRED ONLY IN COMPLIANCE WITH THE REQUIREMENTS OF SUCH ACT AND OF ANY
APPLICABLE STATE SECURITIES LAWS AND SUBJECT TO THE PROVISIONS OF THE PURCHASE AGREEMENT, DATED AS
OF FEBRUARY 22, 2006, BETWEEN THE COMPANY AND THE PURCHASER. A COPY OF SUCH PURCHASE AGREEMENT IS
AVAILABLE AT THE OFFICES OF THE COMPANY.

THIS NOTE WAS ISSUED WITH “ORIGINAL ISSUE DISCOUNT.” FOR INFORMATION REGARDING THE ISSUE PRICE, THE
AMOUNT OF ORIGINAL ISSUE DISCOUNT, THE ISSUE DATE AND THE YIELD TO MATURITY, HOLDERS SHOULD CONTACT
THE CHIEF EXECUTIVE OFFICER OF THE COMPANY AT 4050 E. COTTON CENTER #6-68, PHOENIX, ARIZONA 85040,
TELEPHONE NO. (602) 414-9300.

FORM OF CONVERTIBLE SENIOR SUBORDINATED NOTE DUE 2011

Date:
____ __. 200_

			
	 
	No.
	 	$______

               FIRST SOLAR HOLDINGS, INC., a Delaware corporation (herein called the “Company,” which
term includes any successor Person under the Agreement (as defined on the reverse hereof)), for
value received, hereby promises to pay to ______, or its registered assigns, the principal
sum of ______ Dollars plus accrued, but unpaid, interest (if any) on the unpaid principal
at the rate set forth below, on or before February 22, 2011 (the “Stated Maturity Date”);
provided, however that upon conversion of the principal due under this Note for or into Conversion
Shares (as defined herein) pursuant to Section 12 of the Agreement, such conversion shall
constitute the full discharge of the principal so redeemed or converted under this Note.

               Interest on this Note shall be payable semi-annually in arrears on June 30 and December 30 in
each year commencing on June 30, 2006 and, if different, on the Stated Maturity Date (each, an
“Interest Payment Date”) at the rate of 6% per annum; provided that, if no Minimum Public
Float Date occurs within 2 years after the Closing Date, (i) interest on this Note will be
increased to provide for a cumulative return on the principal amount of this Note, together with
interest previously paid, of 12% per annum calculated on a daily basis commencing on the Closing
Date and ending on the Stated Maturity Date and (ii) principal and interest (as adjusted pursuant
to clause (i)) on this Note shall be amortized over the remaining three year term of the Note with
the level semi-annual payments of combined principal and interest sufficient to amortize the
remaining principal amount of this Note, together with the

 

 

interest thereon as set forth in clause (i) above, prior to the Stated Maturity Date, with the
first payment of principal and interest due March 31, 2008. The level payments of principal and
interest will be set forth in a schedule to be provided by the Purchaser on the second anniversary
of the Closing Date and shall be adjusted to reflect the conversion, if any, of a portion of the
Notes. Interest shall be computed on the basis of a 360-day year of twelve 30-day months. All
interest payable with respect to this Note shall be paid in cash.

               The interest, and if applicable, the principal so payable, and punctually paid or duly
provided for, on any Interest Payment Date will, as provided in the Agreement, be paid to the
Person in whose name this Note is registered at the close of business on the “Regular Record
Date” for such interest, which shall be the fifteenth calendar day (whether or not a Business
Day) immediately preceding such Interest Payment Date. Notwithstanding the foregoing, if this Note
is issued after a Regular Record Date and prior to an Interest Payment Date, the record date for
such Interest Payment Date shall be the original issue date.

               If (i) a default in the payment when due of interest on, principal of, or premium, if any, on
this Note or (ii) an Event of Default (as defined in the Agreement) has occurred and is continuing,
this Note will accrue interest at 2% per annum plus the stated interest rate on this Note until
such time as no such default or such Event of Default shall be continuing (to the extent that the
payment of such interest shall be legally enforceable) (the “Default Interest”) and shall
be payable in cash from time to time upon demand.

               The Company shall pay the principal amount in money of the United States of America that at
the time of payment is legal tender for payment of public and private debts. The Company will make
all cash payments in respect of a certificated Note (including principal and interest), by mailing
a check to the registered address of each Holder (as defined in the Agreement) thereof as shall
appear in the Security Register (as defined in the Agreement); provided, however, that payments on
the Notes may also be made, in the case of a Holder that is the Purchaser (as defined in the
Agreement) or an Institutional Investor (as defined in the Agreement), by wire transfer to a U.S.
dollar account maintained by the payee with a bank in the United States if such Holder elects
payment by wire transfer by giving written notice to such effect designating such account no less
than 15 days immediately preceding the due date for payment.

Reference is hereby made to the further provisions of this Note set forth on the reverse hereof,
which further provisions shall for all purposes have the same effect as if set forth at this place.

2

 

               IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed as of the
date first above written.

	 	 	 	 	 
	 	FIRST SOLAR HOLDINGS, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

3

 

	 	 	 	 	 

Reverse of Note

               This Note is one of a duly authorized issue of securities of the Company designated as its
Convertible Senior Subordinated Notes due 2011 (herein called the “Notes”), limited (except
as otherwise provided in Section 11.8 of the Agreement referred to below) in aggregate
original principal amount to $74,000,000, issued and to be issued pursuant to the Purchase
Agreement, dated as of February 22, 2006 (herein called the “Agreement”), among the Company
and Goldman, Sachs & Co. (the “Purchaser”), to which Agreement and all amendments thereto
reference is hereby made for a statement of the respective rights, limitations of rights, duties
and immunities thereunder of the Company and the Holders and of the terms upon which the Notes are,
and are to be, issued and delivered. All capitalized terms used and not defined in this Note shall
have the meanings assigned to such terms in the Agreement.

               Except as set forth in the following clauses (i), (ii) and (iii) below, the Notes are not
redeemable by the Company prior to the Stated Maturity Date:

	 	(i)	 	Subject to the Holders’ right to convert the Notes, the Company
may redeem all, but not less than all, the Notes, on or after the first (1st)
anniversary of an initial Equity Offering, for a cash payment of 100% of the
principal amount hereof, together with the accrued, but unpaid, interest (if
any) (including Default Interest) on the unpaid principal balance thereof, if
at the time of such redemption, the Current Market Price of the Company’s
Common Stock for at least 20 out of 30 consecutive Trading Days immediately
prior to the Redemption Date exceeds 1.40 times the IPO Per Share Price (as
adjusted in accordance with Section 12.4 of the Agreement). In the case
of redemption of the Notes pursuant to this clause (i), the Holder shall have
the option of exercising its conversion rights prior to the Redemption Date by
delivering a written notice to the Company on or before the Redemption Date set
forth in the redemption notice delivered pursuant to this clause (i).

	 	(ii)	 	The Company may redeem all, but not less than all, the Notes,
prior to the occurrence of an initial Equity Offering, if such redemption
occurs simultaneously with the Incurrence of Indebtedness in violation of
Section 8.2 of the Agreement (the amount of such Incurrence,
“Excess Indebtedness”), for a cash payment equal to the sum of (A) 100%
of the outstanding principal amount hereof, together with (B) a cumulative
return on such principal amount hereof at 12% per annum, calculated on a daily
basis commencing on the Closing Date and ending on the Redemption Date, taking
into account the aggregate amount and timing of prior interest payments paid
(the “Make Whole Premium”) and (C) any Default Interest; provided that
prior to such redemption (A) the Company has requested Purchaser’s consent to
the Incurrence of such Excess Indebtedness by notice delivered to the Purchaser
not more than 60 days prior to the date of the Incurrence of the Excess
Indebtedness which notice shall in reasonable detail describe the proposed
transaction (including the proposed closing date) and the amount of
Indebtedness to be Incurred (a “Notice of 

4

 

	 	 	 	Incurrence of Excess Indebtedness”) and (B) the Purchaser
refuses to waive compliance with Section 8.2 of the Agreement
pursuant to a written notice delivered to the Company within 3 Business Days
of receipt of the Notice of Incurrence of Excess Indebtedness (the
“Approval Notice”).

	 	(iii)	 	The Company may redeem all, but not less than all, the Notes, at any time
after the second (2nd) anniversary of the Closing Date, if no Conversion Event
has occurred, for (A) a cash payment equal to the sum of the principal amount
of the Notes, plus the Make Whole Premium plus any Default Interest and (B) an
amount of Warrants to purchase Common Stock of the Company as would allow the
Holder to acquire the same amount of Common Stock, at the same Conversion Price
(calculated in accordance with Section 12.3 of the Agreement) that the
Holder would have been entitled to purchase pursuant to Section 12.1 of
the Agreement had the Notes not been redeemed.

For purpose of this paragraph, “Redemption Price” means the aggregate amount of cash and
securities required to be paid by the Company in connection with the exercise of its redemption
pursuant to clause (i), (ii) or (iii) above, as applicable.

               The Agreement provides that, the Notes are convertible into Common Stock of the Company in
accordance with Section 12 of the Agreement.

               The Agreement provides that, subject to certain conditions, if a Change of Control occurs, the
Company shall be required to make an offer to purchase all of the Notes in accordance with
Section 7.7 of the Agreement.

               Except as provided in the second paragraph on the face of this Note, the Notes do not have the
benefit of any sinking fund obligations.

               The indebtedness evidenced by this Note is, to the extent provided in the Agreement,
subordinate and subject in right of payment to the prior payment in full in cash or Cash
Equivalents of all Senior Indebtedness, and this Note is issued subject to the provisions of the
Agreement with respect thereto. Each Holder of this Note, by accepting the same, agrees to and
shall be bound by such provisions.

               If an Event of Default shall occur and be continuing, the principal of all the Notes may be
declared due and payable in the manner and with the effect provided in the Agreement. Upon payment
of (i) the principal amount of the Notes, (ii) the Make Whole Premium and (iii) any Default
Interest (in each case to the extent that the payment of such interest shall be legally
enforceable, the “Default Amount”) all of the Company’s obligations in respect of the
payment of the principal of, and interest on, this Note shall terminate.

               The Agreement permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Company and certain rights of the Holders
under the Agreement at any time by the Company with the consent of the Required Holders. The
Agreement also contains provisions requiring the prior written consent of the Holder of each Note
at the time outstanding and affected thereby to waive

5

 

compliance by the Company with certain provisions of the Agreement. Any such consent or waiver
by the Holder of this Note shall be conclusive and binding upon such Holder and upon all future
Holders of this Note and of any Note issued upon the registration of transfer hereof or in exchange
therefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this
Note.

               As provided in the Agreement and subject to certain limitations therein set forth, the
transfer of this Note is registrable in the Security Register, upon surrender of this Note for
registration of transfer at the principal offices of the Company, duly endorsed by, or accompanied
by a written instrument of transfer in form satisfactory to the Company duly executed by, the
Holder hereof or his attorney duly authorized in writing, and thereupon one or more new Notes, of
authorized denominations and for the same aggregate principal amount, will be issued to the
designated transferee or transferees. Prior to due presentment for registration of transfer, the
Company shall treat the person in whose name this Note is registered as the owner and holder hereof
for the purpose of receiving payment and for all other purposes, and the Company will not be
affected by any notice or knowledge to the contrary.

               The Notes are issuable only in registered form without coupons in denominations of $1,000 and
any multiple thereof. As provided in the Agreement and subject to certain limitations therein set
forth, Notes are exchangeable for a like aggregate principal amount of Notes of a different
authorized denomination, as requested by the Holder surrendering the same.

               No service charge shall be made for any such registration of transfer or exchange, but the
Company may require payment of a sum sufficient to cover any tax or other governmental charge
payable in connection therewith.

               In the event any interest is paid on this Note which exceeds the highest rate permissible
under any law that a court of competent jurisdiction shall, in a final determination, deem
applicable, then that portion of the interest payment received in excess of such legal maximum
shall be deemed a payment of principal and applied against the principal balance of this Note.

               THE AGREEMENT AND THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF
THE STATE OF NEW YORK, EXCLUDING CHOICE-OF-LAW PRINCIPLES OF THE LAW OF SUCH STATE THAT WOULD
REQUIRE THE APPLICATION OF THE LAWS OF A JURISDICTION OTHER THAN SUCH STATE.

6

 

OPTION OF HOLDER TO ELECT PURCHASE

               If you want to elect to have this Note purchased in its entirety by the Company pursuant to
Section 7.7 of the Agreement, check the box:

               o

               If you want to elect to have only a part of the principal amount of this Note purchased
by the Company pursuant to Section 7.7 of the Agreement, state the portion of such amount:
$______

      

							
	Dated:
	 	Your Signature:
	 

 
	 	 
	 	 	(Sign exactly as name appears on the other side of this Note)  

7

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