Document:

exv10w1

 

Exhibit 10.1

STOCK PURCHASE AGREEMENT

by and between

THE FURUKAWA ELECTRIC CO., LTD.

and

OPLINK COMMUNICATIONS, INC.

dated as of

April 22, 2007

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	ARTICLE I

	 
	 	 	 	 	 	 
	DEFINITIONS AND INTERPRETATION

	 
	 	 	 	 	 	 
	Section 1.1
	 	Definitions	 	 	1	 
	Section 1.2
	 	Interpretation	 	 	3	 
	 
	 	 	 	 	 	 
	ARTICLE II

	 
	 	 	 	 	 	 
	PURCHASE AND SALE OF SHARES

	 
	 	 	 	 	 	 
	Section 2.1
	 	Sale and Transfer of Shares	 	 	4	 
	Section 2.2
	 	The Purchase Price	 	 	4	 
	 
	 	 	 	 	 	 
	ARTICLE III

	 
	 	 	 	 	 	 
	THE CLOSING

	 
	 	 	 	 	 	 
	Section 3.1
	 	The Closing	 	 	4	 
	Section 3.2
	 	Deliveries by Seller	 	 	4	 
	Section 3.3
	 	Deliveries by Purchaser	 	 	5	 
	 
	 	 	 	 	 	 
	ARTICLE IV

	 
	 	 	 	 	 	 
	REPRESENTATIONS AND WARRANTIES OF SELLER

	 
	 	 	 	 	 	 
	Section 4.1
	 	Organization	 	 	5	 
	Section 4.2
	 	Authorization; Validity of Agreement	 	 	5	 
	Section 4.3
	 	Execution; Validity of Agreement	 	 	5	 
	Section 4.4
	 	Consents and Approvals; No Violations	 	 	5	 
	Section 4.5
	 	Ownership and Possession of Shares	 	 	6	 
	Section 4.6
	 	Good Title Conveyed	 	 	6	 
	Section 4.7
	 	Acquisition of Shares for Investment; Ability to Evaluate and Bear Risk	 	 	6	 
	Section 4.8
	 	Brokers or Finders	 	 	6	 
	Section 4.9
	 	No Other Representations	 	 	7	 
	 
	 	 	 	 	 	 
	ARTICLE V

	 
	 	 	 	 	 	 
	REPRESENTATIONS AND WARRANTIES OF PURCHASER

	 
	 	 	 	 	 	 
	Section 5.1
	 	Organization	 	 	7	 
	Section 5.2
	 	Authorization; Validity of Agreement	 	 	7	 
	Section 5.3
	 	Consents and Approvals; No Violations	 	 	7	 
	Section 5.4
	 	Capitalization	 	 	8	 
	Section 5.5
	 	Good Title Conveyed	 	 	8	 
	Section 5.6
	 	SEC Filings	 	 	9	 

 

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	Section 5.7
	 	Acquisition of Shares for Investment; Ability to Evaluate and Bear Risk	 	 	9	 
	Section 5.8
	 	Availability to Funds	 	 	9	 
	Section 5.9
	 	Brokers’ and Finders’ Fees	 	 	10	 
	Section 5.10
	 	No Other Representations	 	 	10	 
	 
	 	 	 	 	 	 
	ARTICLE VI

	 
	 	 	 	 	 	 
	CERTAIN COVENANTS

	 
	 	 	 	 	 	 
	Section 6.1
	 	Efforts and Actions to Cause Closing to Occur	 	 	10	 
	Section 6.2
	 	Offer for Remaining Shares of the Company	 	 	11	 
	Section 6.3
	 	Public Disclosure	 	 	11	 
	Section 6.4
	 	Transfer of the Purchaser Shares	 	 	11	 
	Section 6.5
	 	Agreement to Vote Shares	 	 	12	 
	Section 6.6
	 	Non-solicitation	 	 	13	 
	 
	 	 	 	 	 	 
	ARTICLE VII

	 
	 	 	 	 	 	 
	CONDITIONS TO THE CLOSING

	 
	 	 	 	 	 	 
	Section 7.1
	 	Conditions to Each Party’s Obligation to Effect the Closing	 	 	13	 
	Section 7.2
	 	Conditions to Obligations of Purchaser to Effect the Closing	 	 	14	 
	Section 7.3
	 	Conditions to Obligations of Seller to Effect the Closing	 	 	14	 
	 
	 	 	 	 	 	 
	ARTICLE VIII

	 
	 	 	 	 	 	 
	TERMINATION, AMENDMENT AND WAIVER

	 
	 	 	 	 	 	 
	Section 8.1
	 	Termination	 	 	15	 
	Section 8.2
	 	Effect of Termination	 	 	15	 
	 
	 	 	 	 	 	 
	ARTICLE IX

	 
	 	 	 	 	 	 
	MISCELLANEOUS

	 
	 	 	 	 	 	 
	Section 9.1
	 	Fees and Expenses	 	 	16	 
	Section 9.2
	 	Amendment and Modification	 	 	16	 
	Section 9.3
	 	Notices	 	 	16	 
	Section 9.4
	 	Counterparts	 	 	17	 
	Section 9.5
	 	Entire Agreement; No Third-Party Beneficiaries	 	 	17	 
	Section 9.6
	 	Severability	 	 	17	 
	Section 9.7
	 	Governing Law	 	 	17	 
	Section 9.8
	 	Venue	 	 	17	 
	Section 9.9
	 	Time of Essence	 	 	18	 
	Section 9.10
	 	Extension and Waiver	 	 	18	 
	Section 9.11
	 	Assignment	 	 	18	 
	 
	 	 	 	 	 	 
	EXHIBIT A
	 	Form of Proxy	 	 	 	 

ii

 

STOCK PURCHASE AGREEMENT

          This AGREEMENT (this “Agreement”), dated as of April 22, 2007, by and between The
Furukawa Electric Co., Ltd., a Japanese corporation (“Seller”) and Oplink Communications,
Inc., a Delaware corporation (“Purchaser”).

RECITALS

          WHEREAS, Seller owns 66,000,000 shares of the Class B Common Stock (the “Class B Common
Stock”) of Optical Communication Products, Inc., a Delaware corporation (the
“Company”); and

          WHEREAS, the Board of Directors of Seller has approved, and deems it advisable and in the best
interests of its shareholders to sell, and the Board of Directors of Purchaser has approved, and
deems it advisable and in the best interests of its shareholders, to acquire, the Class B Common
Stock upon the terms and subject to the conditions set forth herein;

          NOW, THEREFORE, in consideration of the foregoing and the mutual representations, warranties,
covenants and agreements set forth herein, intending to be legally bound hereby, the parties hereto
agree as follows:

ARTICLE I

DEFINITIONS AND INTERPRETATION

          Section 1.1 Definitions

          For all purposes of this Agreement, except as otherwise expressly provided or unless the
context clearly requires otherwise:

          “Acquisition Proposal” means any offer, proposal or any third party indication of
interest or intent relating to any transaction or series of related transactions involving: (a)
any purchase from such party or acquisition by any individual, entity or “group” (as defined under
Section 13(d) of the Exchange Act and the rules and regulations thereunder) of more than a 10%
interest in the total outstanding voting securities of the Company or any of its subsidiaries or
any tender offer or exchange offer that if consummated would result in any individual, entity or
group beneficially owning 10% or more of the total outstanding voting securities of the Company or
any of its subsidiaries, (b) any merger, consolidation, business combination or similar transaction
involving the Company or any of its subsidiaries, (c) any sale, lease (other than in the ordinary
course of business), exchange, transfer, license (other than in the ordinary course of business),
acquisition or disposition of more than 10% of the assets of the Company (including its
subsidiaries, taken as a whole), (d) any liquidation or dissolution of the Company, or (e) any
acquisition of any of the Shares by any individual, entity or group; provided, however, that the
transactions between Purchaser and Seller contemplated by this Agreement shall not be deemed an
Acquisition Proposal.

          “Action of Divestiture” means (i) any license, sale or other disposition or holding
separate (through establishment of a trust or otherwise) of any shares of capital stock or of any
business, assets or properties of Purchaser, its subsidiaries or affiliates or of the Company or
its subsidiaries, (ii) the imposition of any limitation on the ability of Purchaser, its
subsidiaries or affiliates or the Company or its subsidiaries to conduct their respective
businesses or own any capital stock or assets or to acquire, hold or exercise full rights of
ownership of their respective businesses and, in the case of Purchaser, the

 

 

businesses of the Company and its subsidiaries, or (iii) the imposition of any impediment on
Purchaser, its subsidiaries or affiliates or the Company or its subsidiaries under any statute,
rule, regulation, executive order, decree, order or other legal restraint governing competition,
monopolies or restrictive trade practices.

          “Affiliate” shall have the meaning set forth in Rule 12b-2 promulgated under the
Exchange Act.

          “Agreement” or “this Agreement” means this Stock Purchase Agreement, together
with the Exhibits hereto.

          “Closing” means the closing referred to in Section 3.1.

          “Closing Date” means the date on which the Closing occurs.

          “Company” has the meaning set forth in the Recitals.

          “Encumbrances” means any and all liens, charges, security interests, options, claims,
mortgages, pledges, proxies, voting trusts or agreements, obligations, understandings or
arrangements or other restrictions on title or transfer of any nature whatsoever.

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

          “Governmental Entity” means a court, arbitral tribunal, administrative agency or
commission or other governmental or other regulatory authority or agency.

          “HSR Act” means the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended.

          “Material Adverse Effect” when used in connection with any Person, means any change,
event, violation, inaccuracy, circumstance or effect (any such item, an “Effect”),
individually or when taken together with all other Effects that have occurred after the date hereof
and prior to the date of determination of the occurrence of the Material Adverse Effect, that is or
is reasonably likely to be materially adverse to the business, assets (including intangible
assets), liabilities, capitalization, financial condition or results of operations of such Person,
taken as a whole with its subsidiaries, other than any Effect primarily resulting from (A) changes
affecting the United States or world economy generally which changes do not disproportionately
affect such Person taken as a whole with its subsidiaries, (B) changes affecting the industry in
which such Person and its subsidiaries operate generally which changes do not disproportionately
affect such Person taken as a whole with its subsidiaries, (C) a change in such Person’s stock
price or the trading volume in such stock, as applicable (provided that this clause (C) shall not
exclude any underlying Effect which may have caused such change in stock price or trading volume),
(D) acts of terrorism or war which changes do not disproportionately affect such Person taken as a
whole with its subsidiaries, (E) suspension or delay of customer orders, the threat of suspension
of future customer orders, a slowdown in the rate of new orders from existing channels or the
suspension of supplier relationships, in each case, resulting from the announcement of this
Agreement and the transactions contemplated hereby, (F) a failure to meet securities analysts’
published revenue or earnings predictions for such Person for any period ending (or for which
revenues or earnings are released) on or after the date of this Agreement (provided that this
clause (F) shall not exclude the revenues or earnings of such Person itself, as applicable, or any
Effect which may have affected such Person’s revenues or earnings, as applicable), (G) changes in
GAAP first publicly disclosed after the date hereof, or (H) any Action of Divestiture that would
not reasonably be likely to adversely and materially impact the

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Purchaser taken as a whole, the Company and its subsidiaries taken as a whole, or the benefits
Purchaser expects to derive from the Transactions.

          “Person” means a natural person, partnership, corporation, limited liability company,
business trust, joint stock company, trust, unincorporated association, joint venture, Governmental
Entity or other entity or organization.

          “Purchaser” has the meaning set forth in the Preamble.

          “Purchaser Common Stock” has the meaning set forth in Section 5.4(a).

          “Purchaser Preferred Stock” has the meaning set forth in Section 5.4(a).

          “Purchaser Shares” has the meaning set forth in Section 2.2.

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

          “SEC” means the United States Securities and Exchange Commission.

          “Section 203” means Section 203 of the Delaware General Corporation Law.

          “Seller” has the meaning set forth in the Preamble.

          “Shares” means the 66,000,000 shares of Class B Common Stock owned by Seller.

          “Transactions” means all the transactions provided for or contemplated by this
Agreement.

          Section 1.2 Interpretation

               (a) The headings contained in this Agreement are for reference purposes only and shall
not affect in any way the meaning or interpretation of this Agreement.

               (b) When a reference is made in this Agreement to a section or article, such reference shall
be to a section or article of this Agreement unless otherwise clearly indicated to the contrary.

               (c) Whenever the words “include”, “includes” or “including” are used in this Agreement they
shall be deemed to be followed by the words “without limitation.”

               (d) The words “hereof”, “herein” and “herewith” and words of similar import shall, unless
otherwise stated, be construed to refer to this Agreement as a whole and not to any particular
provision of this Agreement, and article, section, paragraph, exhibit and schedule references are
to the articles, sections, paragraphs, exhibits and schedules of this Agreement unless otherwise
specified.

               (e) The meaning assigned to each term defined herein shall be equally applicable to both the
singular and the plural forms of such term, and words denoting any gender shall include all
genders. Where a word or phrase is defined herein, each of its other grammatical forms shall have a
corresponding meaning.

               (f) A reference to any party to this Agreement or any other agreement or document shall
include such party’s successors and permitted assigns.

3

 

               (g) A reference to any legislation or to any provision of any legislation shall include any
amendment to, and any modification or re-enactment thereof, any legislative provision substituted
therefor and all regulations and statutory instruments issued thereunder or pursuant thereto.

               (h) The parties have participated jointly in the negotiation and drafting of this Agreement.
In the event an ambiguity or question of intent or interpretation arises, this Agreement shall be
construed as if drafted jointly by the parties, and no presumption or burden of proof shall arise
favoring or disfavoring any party by virtue of the authorship of any provisions of this Agreement

ARTICLE II

PURCHASE AND SALE OF SHARES

          Section 2.1 Sale and Transfer of Shares

          Subject to the terms and conditions of this Agreement, at the Closing, Seller shall sell,
convey, assign, transfer and deliver to Purchaser the Shares free and clear of all Encumbrances,
except for any Encumbrance arising under Section 203, the Securities Act or any applicable state
securities laws.

          Section 2.2 The Purchase Price

          Subject to the terms and conditions of this Agreement, in consideration of the aforesaid
sale, conveyance, assignment, transfer and delivery to Purchaser of the Shares, Purchaser shall
deliver to Seller: (i) an amount of cash equal to $84,150,000 and (ii) 857,258 shares of Purchaser
Common Stock (the “Purchaser Shares”). The number of Purchaser Shares to be delivered
hereunder shall be adjusted as appropriate to reflect fully the effect of any reclassification,
stock split, reverse stock split, stock dividend (including any dividend or distribution of
securities convertible into capital stock of Purchaser), reorganization, recapitalization or other
like change with respect to the capital stock of Purchaser occurring (or for which a record date is
established) after the date hereof and prior to the Closing.

ARTICLE III

THE CLOSING

          Section 3.1 The Closing

          The sale and transfer of the Shares by Seller to Purchaser shall take place at the
offices of Skadden, Arps, Slate, Meagher & Flom LLP, 525 University Avenue, Suite 1100, Palo Alto,
CA 94301, at 10:00 a.m., Pacific time, two business days following the satisfaction and/or waiver
of all conditions to close set forth in Article VII (other than such conditions as can be satisfied
only at the Closing), unless another date or place is agreed in writing by each of the parties
hereto.

          Section 3.2 Deliveries by Seller.

          At the Closing, Seller shall deliver to Purchaser:

               (a) one or more certificates representing the Shares, each such certificate to be duly and
validly endorsed in favor of Purchaser or accompanied by a separate stock power duly and validly
executed by Seller and otherwise sufficient to vest in Purchaser good title to such Shares;

4

 

               (b) all other previously undelivered documents required to be delivered by Seller to Purchaser
at or prior to the Closing in connection with the Transactions.

          Section 3.3 Deliveries by Purchaser

          At the Closing, Purchaser shall:

               (a) transfer the amount set forth in Section 2.2(i) to an account designated by Seller prior
to the Closing by wire transfer in immediately available funds;

               (b) issue and deliver to Seller certificates representing the Purchaser Shares registered in
the name of Seller; and

               (c) deliver to Seller such other documents as are required to be delivered by Purchaser to
Seller pursuant hereto.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF SELLER 

          Seller represents and warrants to Purchaser as of the date of this Agreement and as of the
Closing as follows:

          Section 4.1 Organization

          Seller is a corporation duly organized and validly existing under the laws of Japan.

          Section 4.2  Authorization; Validity of Agreement

          Seller has full corporate power and authority to execute and deliver this Agreement and
to consummate the Transactions. The execution, delivery and performance by Seller of this
Agreement and the consummation of the Transactions have been duly authorized by the Board of
Directors of Seller, and no other corporate action on the part of Seller is necessary to authorize
the execution and delivery by Seller of this Agreement or the consummation of the Transactions. No
vote of, or consent by, the holders of any class or series of stock issued by Seller is necessary
to authorize the execution and delivery by Seller of this Agreement or the consummation by it of
the Transactions.

          Section 4.3 Execution; Validity of Agreement

          This Agreement has been duly executed and delivered by Seller, and, assuming due and
valid authorization, execution and delivery hereof by Purchaser, is a valid and binding obligation
of Seller, enforceable against Seller in accordance with its terms.

          Section 4.4 Consents and Approvals; No Violations

          Except for the filings, permits, authorizations, consents and approvals as may be
required under, and other applicable requirements of, the Exchange Act, the HSR Act and any
comparable foreign antitrust laws, if applicable, and state securities or blue sky laws, none of
the execution, delivery or performance of this Agreement by Seller, the consummation by Seller of
the Transactions or compliance by Seller with any of the provisions hereof will (a) conflict with
or result in any breach of any provision of the charter or by-laws of Seller or the Company, (b)
require any filing with, or permit, authorization,

5

 

consent or approval of, any Governmental Entity, (c) result in a violation or breach of, or
constitute (with or without due notice or lapse of time or both) a default (or give rise to any
right of termination, cancellation or acceleration) under, any of the terms, conditions or
provisions of any note, bond, mortgage, indenture, lease, license, contract, agreement or other
instrument or obligation to which Seller is a party or to which its assets are subject (excluding,
for the avoidance of doubt, the Company and all assets of the Company), or (d) violate any order,
writ, injunction, decree, statute, rule or regulation applicable to Seller or to the Company,
excluding from the foregoing clauses (b), (c) and (d) such violations, breaches or defaults which
(A) would not, individually or in the aggregate, have a material adverse effect on Seller’s ability
to consummate the Transactions or (B) would become applicable as a result of the business or
activities in which Purchaser is or proposes to be engaged or as a result of any acts or omissions
by Purchaser.

          Section 4.5 Ownership and Possession of Shares

          Seller is the record and beneficial owner of the Shares. Other than the Shares, Seller
is not the record or beneficial owner of any other shares of the Company. The certificates
representing the Shares are now and at all times during the term hereof shall be held by Seller or
by a nominee or custodian for the sole and exclusive benefit of Seller, free and clear of all
Encumbrances whatsoever, except for any Encumbrances created by this Agreement and Encumbrances
arising under the Securities Act or any applicable state securities laws, and except for the
conversion of the Class B Common Stock in accordance with the Certificate of Incorporation of the
Company. A copy of the certificate representing the Shares, which includes a Securities Act legend,
has been previously delivered to Purchaser.

          Section 4.6 Good Title Conveyed

          The Shares are duly authorized, validly issued, fully paid and nonassessable and not
subject to any preemptive rights. The stock certificates, stock powers, endorsements, assignments
and other instruments to be executed and delivered by Seller to Purchaser at the Closing will be
valid and binding obligations of Seller, enforceable in accordance with their respective terms, and
will effectively vest in Purchaser good and marketable title to all the Shares, free and clear of
all Encumbrances, except restrictions on transfer imposed by the Securities Act and any applicable
state securities laws, and except for the conversion of the Class B Common Stock into 66,000,000
shares of Class A Common Stock of the Company in accordance with the Certificate of Incorporation
of the Company.

          Section 4.7 Acquisition of Shares for Investment; Ability to Evaluate and Bear
Risk

               (a) Seller is acquiring the Purchaser Shares for investment and not with a view toward,
or for sale in connection with, any distribution thereof, nor with any present intention of
distributing or selling the Purchaser Shares. Seller agrees that the Purchaser Shares may not be
sold, transferred, offered for sale, pledged, hypothecated or otherwise disposed of without
registration under the Securities Act and any applicable state securities laws, except pursuant to
an exemption from such registration under such Act and such laws, and acknowledges that the
certificate representing the Purchaser Shares will bear a customary legend to such effect.

               (b) Seller is able to bear the economic risk of holding the Purchaser Shares for an indefinite
period, and has knowledge and experience in financial and business matters such that it is capable
of evaluating the risks of the investment in the Purchaser Shares.

          Section 4.8 Brokers or Finders

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          Seller has not entered into any agreement or arrangement entitling any agent, broker,
investment banker, financial advisor or other firm or Person to any broker’s or finder’s fee or any
other commission or similar fee in connection with any of the Transactions, except JPMorgan
Securities Japan Co., Ltd., whose fees and expenses will be paid by Seller in accordance with
Seller’s agreement with such firm.

          Section 4.9 No Other Representations

          Except for the representations and warranties contained in this Article IV, neither
Seller nor any other person or entity acting on behalf of Seller, makes any representation or
warranty, express or implied. Without limiting the foregoing, Seller makes no representations or
warranties with respect to the Company whatsoever.

ARTICLE V

REPRESENTATIONS AND WARRANTIES OF PURCHASER

          Purchaser represents and warrants to Seller as of the date of this Agreement and as of the
Closing, that:

          Section 5.1 Organization

          Purchaser is a corporation duly organized, validly existing and in good standing under
the laws of Delaware and has all requisite corporate or other power and authority and all necessary
governmental approvals to own, lease and operate its properties and to carry on its business as now
being conducted, except where the failure to be so organized, existing and in good standing or to
have such power, authority, and governmental approvals would not have, individually or in the
aggregate, a material adverse effect on Purchaser or a material adverse effect on Purchaser’s
ability to consummate the Transactions.

          Section 5.2 Authorization; Validity of Agreement

          Purchaser has full corporate power and authority to execute and deliver this Agreement
and to consummate the Transactions. The execution, delivery and performance by Purchaser of this
Agreement and the consummation of the Transactions have been duly authorized by the Board of
Directors of Purchaser, and no other corporate action on the part of Purchaser is necessary to
authorize the execution and delivery by Purchaser of this Agreement or the consummation of the
Transactions. No vote of, or consent by, the holders of any class or series of stock issued by
Purchaser is necessary to authorize the execution and delivery by Purchaser of this Agreement or
the consummation by it of the Transactions. This Agreement has been duly executed and delivered by
Purchaser, and, assuming due and valid authorization, execution and delivery hereof by Seller, is a
valid and binding obligation of Purchaser, enforceable against Purchaser in accordance with its
terms.

          Section 5.3 Consents and Approvals; No Violations

          Except for the filings, permits, authorizations, consents and approvals as may be
required under, and other applicable requirements of, the Exchange Act, the HSR Act and any
comparable foreign antitrust laws, if applicable, and state securities or blue sky laws, none of
the execution, delivery or performance of this Agreement by Purchaser, the consummation by
Purchaser of the Transactions or compliance by Purchaser with any of the provisions hereof will (a)
conflict with or result in any breach of any provision of the certificate of incorporation or
by-laws of Purchaser, (b) require any filing with, or

7

 

permit, authorization, consent or approval of, any Governmental Entity, (c) result in a
violation or breach of, or constitute (with or without due notice or lapse of time or both) a
default (or give rise to any right of termination, cancellation or acceleration) under, any of the
terms, conditions or provisions of any note, bond, mortgage, indenture, lease, license, contract,
agreement or other instrument or obligation to which Purchaser or any of its Subsidiaries is a
party or by which any of them or any of their respective properties or assets may be bound, or (d)
violate any order, writ, injunction, decree, statute, rule or regulation applicable to Purchaser,
any of its Subsidiaries or any of their properties or assets, excluding from the foregoing clauses
(b), (c) and (d) such violations, breaches or defaults which would not, individually or in the
aggregate, have a material adverse effect on Purchaser’s ability to consummate the Transactions.
Purchaser understands and acknowledges that (i) the Transactions have not been approved by the
board of directors of the Company under Section 203, and that (ii) the Class B Common Stock, upon
transfer to Purchaser will automatically convert into 66,000,000 shares of Class A Common Stock, of
the Company, in accordance with the Certificate of Incorporation of the Company.

          Section 5.4 Capitalization

               (a) The authorized capital stock of Purchaser consists of 34,000,000 shares of common
stock, par value $0.001 per share (“Purchaser Common Stock”), and 5,000,000 shares of preferred
stock, par value $0.001 per share (“Purchaser Preferred Stock”), 4,000,000 shares of which are
designated as Series A Junior Participating Preferred Stock. As of the close of business on March
31, 2007: (i) 22,209,900 shares of Purchaser Common Stock were issued and outstanding; (ii) no
shares of Purchaser Preferred Stock were issued and outstanding; and (iii) 3,383,447 shares of
Purchaser Common Stock were subject to issuance pursuant to outstanding options to purchase
Purchaser Common Stock. There are no shares of Purchaser capital stock held by Purchaser in its
treasury and no shares of Purchaser capital stock are owned or held by any subsidiary of Purchaser.
All of the outstanding shares of capital stock of Purchaser are duly authorized and validly issued,
fully paid and nonassessable and not subject to any preemptive rights.

               (b) Except as set forth in Section 5.4(a) above, as of the close of business on March 31,
2007, (i) there were no shares of capital stock of Purchaser authorized, issued or outstanding;
(ii) other than the Rights Agreement, dated as of March 18, 2002, between Purchaser and The Bank of
New York, there were no options, warrants, calls, preemptive rights, subscription or other rights,
agreements, arrangements or commitments of any character, relating to the issued or unissued
capital stock of Purchaser, obligating Purchaser or any of its subsidiaries to issue, transfer,
redeem, purchase or sell or cause to be issued, transferred, redeemed, purchased or sold any shares
of capital stock or other equity interest in, Purchaser or any of its subsidiaries, or securities
convertible into or exchangeable for such shares or equity interests or to otherwise make any
payment in respect of any such shares or other equity interest or obligating Purchaser or any of
its subsidiaries to grant, extend or enter into any such option, warrant, call, preemptive right,
subscription or other right, agreement, arrangement or commitment; and (iii) there were no rights,
agreements or arrangements of any character which provide for any stock appreciation or similar
right or grant any right to share in the equity, income, revenue or cash flow of Purchaser.

               (c) Since the close of business on March 31, 2007, other than the issuance of Purchaser Common
Stock pursuant to the exercise of options or warrants outstanding as of the close of business on
March 31, 2007 in accordance with their terms as in effect on the date hereof, there has been no
change in the outstanding capital stock of Purchaser, the shares of Purchaser capital stock subject
to issuance pursuant to outstanding options or warrants or the options, warrants or other rights,
commitments, agreements or arrangements relating to capital stock of Purchaser or any of its
subsidiaries.

          Section 5.5 Good Title Conveyed

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          Delivery of the Purchaser Common Stock to Seller, in accordance with the terms of this
Agreement, will effectively vest in Seller good title to the Purchaser Common Stock, free and clear
of all Encumbrances, except restrictions on transfer imposed by this Agreement, the Securities Act
and any applicable state securities laws.

          Section 5.6 SEC Filings

          Purchaser has filed or furnished all registration statements, reports, schedules and
other documents required to be filed or furnished by it or any of its subsidiaries with the SEC
since December 31, 2003 (collectively, including any amendments thereto, the “Purchaser SEC
Reports”). As of their respective filing dates (or, if amended, as of the date of such
amendment), the Purchaser SEC Reports were prepared in accordance with, and complied in all
material respects with, the requirements of the Exchange Act and the Securities Act, as the case
may be, and the rules and regulations of the SEC promulgated thereunder, and none of the Purchaser
SEC Reports contained any untrue statement of a material fact or omitted to state a material fact
required to be stated therein or necessary to make the statements made therein, in light of the
circumstances under which they were made, not misleading, except to the extent corrected by a
Purchaser SEC Report filed subsequently (but prior to the date hereof). To the knowledge of
Purchaser, as of the date hereof, none of the Purchaser SEC Reports is the subject of ongoing SEC
review or outstanding SEC comment. Each of the financial statements (including the related notes
and schedules) of Purchaser included in, or incorporated by reference into, the Company SEC Reports
(the “Purchaser Financials”) complied in all material respects with applicable accounting
requirements and the published rules and regulations of the SEC with respect thereto in effect at
the time of filing of the relevant SEC Report, were prepared in accordance with United States
generally accepted accounting principles (“GAAP”) (except, in the case of unaudited
financial statements, as permitted by applicable rules and regulations of the SEC) applied on a
consistent basis during the periods involved (except as may be indicated in the notes thereto) and
fairly present in all material respects the consolidated financial position of Purchaser and its
consolidated subsidiaries as of the dates thereof and their consolidated results of operations for
the periods then ended (subject, in the case of unaudited financial statements, to normal year-end
audit adjustments and the absence of footnotes). Purchaser has no current intention to correct or
restate, and to the knowledge of Purchaser, there is not any basis to correct or restate any of the
Purchaser Financials. Purchaser has not had any disagreement with any of its auditors regarding
material accounting matters or policies during any of its past three full fiscal years or during
the current fiscal year-to-date.

          Section 5.7 Acquisition of Shares for Investment; Ability to Evaluate and Bear
Risk

               (a) Purchaser is acquiring the Shares for investment and not with a view toward, or for
sale in connection with, any distribution thereof, nor with any present intention of distributing
or selling the Shares. Purchaser agrees that the Shares may not be sold, transferred, offered for
sale, pledged, hypothecated or otherwise disposed of without registration under the Securities Act
and any applicable state securities laws, except pursuant to an exemption from such registration
under such Act and such laws.

               (b) Purchaser is able to bear the economic risk of holding the Shares for an indefinite
period, and has knowledge and experience in financial and business matters such that it is capable
of evaluating the risks of the investment in the Shares.

          Section 5.8 Availability to Funds

9

 

          Purchaser currently has sufficient immediately available funds in cash or cash
equivalents and will at the Closing have sufficient immediately available funds, in cash, to pay
the cash portion of the purchase price and to pay any other amounts payable pursuant to this
Agreement and to effect the Transactions.

          Section 5.9 Brokers’ and Finders’ Fees

          Neither Purchaser nor any of its Subsidiaries or its Affiliates has entered into any
agreement or arrangement entitling any agent, broker, investment banker, financial advisor or other
firm or Person to any broker’s or finder’s fee or any other commission or similar fee in connection
with any of the Transactions, except Seven Hills Partners LLC, whose fees and expenses will be paid
by Purchaser in accordance with Purchaser’s agreement with such firm.

          Section 5.10 No Other Representations

          Except for the representations and warranties contained in this Article V, neither
Purchaser nor any other person or entity acting on behalf of Purchaser, makes any representation or
warranty, express or implied.

ARTICLE VI

CERTAIN COVENANTS

          Section 6.1 Efforts and Actions to Cause Closing to Occur

               (a) Prior to the Closing, upon the terms and subject to the conditions of this Agreement,
Purchaser and Seller shall use their respective reasonable best efforts to take, or cause to be
taken, all actions, and to do, or cause to be done and cooperate with each other in order to do,
all things necessary, proper or advisable (subject to any applicable laws) to consummate the
Closing and the other Transactions as promptly as practicable, including the preparation and filing
of all forms, registrations and notices required to be filed to consummate the Closing and the
other Transactions and the taking of such actions as are necessary to obtain any requisite
approvals, authorizations, consents, orders, licenses, permits, qualifications, exemptions or
waivers by any third party or Governmental Entity. In addition, no party hereto shall take any
action after the date hereof that could reasonably be expected to materially delay the obtaining
of, or result in not obtaining, any permission, approval or consent from any Governmental Entity or
other Person required to be obtained prior to Closing. Nothing contained in this Agreement shall
require Seller or the Company to pay any consideration to any other Person from whom any such
approvals, authorizations, consents, orders, licenses, permits, qualifications, exemptions or
waiver is requested, or to consent to or accept any divestiture or operational limitation in
connection with the Transactions.

               (b) Prior to the Closing, each party shall promptly consult with the other party hereto with
respect to, provide any necessary information with respect to, and provide the other parties (or
their respective counsel) with copies of, all filings made by such party with any Governmental
Entity or any other information supplied by such party to a Governmental Entity in connection with
this Agreement and the Transactions. Each party hereto shall promptly provide the other party with
copies of any communication received by such party from any Governmental Entity regarding any of
the Transactions. If any party hereto receives a request for information or documentary material
from any such Governmental Entity with respect to any of the Transactions, then such party shall
endeavor in good faith

10

 

to make, or cause to be made, as soon as reasonably practicable and after consultation with
the other parties, an appropriate response in compliance with such request.

               (c) In addition to and without limiting the agreements of the parties contained above, each of
Purchaser and Seller shall make the filings required of them under the HSR Act as soon as is
practicable, and shall use reasonable best efforts to do so within two business days of the date
hereof and concurrently with the filing of notifications under the HSR Act or as soon thereafter as
practicable, request early termination of the HSR Act waiting period.

          Section 6.2 Offer for Remaining Shares of the Company

          Promptly following the public disclosure of the execution of his Agreement, Purchaser
shall submit to the Board of Directors of the Company in writing, in form and substance as agreed
upon by Seller and Purchaser as of the date hereof, an offer (subject to the terms and conditions
set forth in such offer) to acquire all remaining outstanding equity securities of the Company on
terms no less favorable to the holders of such equity securities than the terms pursuant to which
Purchaser proposes to acquire the Shares hereunder. None of the Company or any of its shareholders
is intended nor shall be deemed a third party beneficiary of this provision.

          Section 6.3 Public Disclosure

               (a) The parties shall not issue any report, statement or press release or otherwise make
any public statements with respect to this Agreement and the transactions contemplated by this
Agreement without the prior written approval of the other party, except as may be required by law
or the rules and regulations of the Tokyo Stock Exchange or the Nasdaq or in connection with the
enforcement of this Agreement, in which case the parties will use their commercially reasonable
efforts to reach mutual agreement as to the language of any such report, statement or press release
in advance of publication. Any press release announcing the execution of this Agreement or the
Closing shall be issued only in such form as shall be mutually agreed upon by Seller and Purchaser,
and Purchaser and Seller shall consult with the other party before issuing any other press release
or otherwise making any public statement with respect to the Transactions or this Agreement.

               (b) Purchaser shall cooperate and provide Seller (and its counsel) with a reasonable
opportunity to review and comment on any report or filing relating to or describing the
Transactions or this Agreement required to be filed by Purchaser pursuant to the Exchange Act prior
to filing such with the SEC, and will provide Seller with a copy of all such filings made with the
SEC.

               (c) The provisions of this Section 6.3 shall terminate thirty (30) days following the Closing.

          Section 6.4 Transfer of the Purchaser Shares

               (a) During the three-year period following the Closing, Seller shall not, without the
prior written consent of the Purchaser, other than to a controlled Affiliate of Seller who agrees
in writing to be bound by the restrictions contained in this Section 6.4: (i) lend, offer, pledge,
sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to
sell, grant any option, right or warrant to purchase, or otherwise transfer or dispose of, directly
or indirectly, any of the Purchaser Shares or any additional shares issued thereon or in respect
thereof; or (ii) enter into any swap or other arrangement that transfers to another, in whole or in
part, any of the economic consequences of ownership of the Purchaser Shares, whether any such
transaction described in clause (i) or (ii) above is to be settled by delivery of the Purchaser
Shares or such other securities, in cash or otherwise; provided,

11

 

however, that one-third (1/3rd) of the Purchaser Shares shall be released from the
restrictions set forth in this Section 6.4(a) on the corresponding day of the end of each one (1)
year period after the Closing (or if there is no corresponding day in any such month, on the last
day of such month), until all Purchaser Shares have been released from the restrictions set forth
in this Section 6.4(a) on the third (3rd ) anniversary of the Closing.

               (b) In order to enforce the foregoing, Purchaser shall have the right to place restrictive
legends on the certificates representing the Purchaser Shares and to impose stop transfer
instructions with respect to the Purchaser Shares (and any additional shares issued thereon or in
respect thereof) until the end of the applicable portion of such three-year period. Upon request
of Seller, Purchaser shall promptly remove such restrictive legend from any Purchaser Shares (and
any additional shares issued thereon or in respect thereof) on the expiration of the restricted
period applicable to such Purchaser Shares (and any additional shares issued thereon or in respect
thereof).

          Section 6.5 Agreement to Vote Shares

               (a) At every meeting of the shareholders of the Company called, and at every adjournment
or postponement thereof, and on every action or approval by written consent of the shareholders of
Company, Seller (in Seller’s capacity as such), to the extent not voted by the person(s) appointed
under the Proxy (as defined below), shall, or shall cause the holder of record on any applicable
record date to, vote the Shares:

                    (i) against approval of any proposal made in opposition to, or in competition
with, consummation of any of the Transactions; and

                    (ii) against any of the following actions (other than those actions that are in
furtherance of the Transactions and any other transactions contemplated by this
Agreement): (A) any merger, consolidation, business combination, sale of assets,
reorganization or recapitalization of the Company or any material subsidiary of the
Company with any party, (B) any sale, lease or transfer of any significant part of
the assets of the Company or of the assets of any subsidiary of the Company that are
material to the Company, (C) any reorganization, recapitalization, dissolution,
liquidation or winding up of the Company or any material subsidiary of the Company,
(D) any material change in the capitalization of the Company or any material
subsidiary of the Company, or the corporate structure of the Company or any material
subsidiary of the Company, or (E) any other action that is intended, or would
reasonably be expected to, materially impede, interfere with, delay, postpone or
adversely affect the Transactions or any other transactions contemplated by the this
Agreement.

               (b) In the event that a meeting of the shareholders of the Company is held, Seller shall, or
shall cause the holder of record on any applicable record date to, appear at such meeting or
otherwise cause the Shares to be counted as present thereat for purposes of establishing a quorum.

               (c) Seller shall not enter into any agreement or understanding with any individual or entity
to vote or give instructions in any manner inconsistent with the terms of this Section 6.5.

               (d) Concurrently with the execution of this Agreement, Seller shall deliver to Parent a proxy
in the form attached hereto as Exhibit A (the “Proxy”), which shall be irrevocable to the
fullest extent permissible by law, with respect to the Shares.

12

 

               (e) This Section 6.5 shall terminate on the earlier of the Closing and the termination of this
Agreement.

          Section 6.6 Non-solicitation

               (a) Other than as specifically contemplated herein, Seller agrees that neither it nor any
of its officers, directors, agents and representatives (including any investment banker, attorney
or accountant retained by it) shall (nor shall authorize any of them to) directly or indirectly:
(i) solicit, initiate or knowingly encourage, facilitate or induce any inquiry with respect to, or
the making, submission or announcement of, any Acquisition Proposal, (ii) participate in any
discussions or negotiations regarding, or furnish to any individual or entity any nonpublic
information with respect to, or take any other action to facilitate any inquiries or the making of
any proposal that constitutes or could reasonably be expected to lead to, any Acquisition Proposal,
(iii) engage in discussions with any individual or entity with respect to any Acquisition Proposal,
except to notify such individual or entity as to the existence of these provisions, (iv) approve,
endorse or recommend any proposal to acquire the Shares, or (v) enter into any letter of intent or
similar document or any contract, agreement or commitment contemplating or otherwise relating to
any Acquisition Proposal. Seller will immediately cease and cause to be terminated any and all
existing activities, discussions or negotiations by it or any of its officers, directors, agents
and representatives with any third parties conducted heretofore with respect to any Acquisition
Proposal and shall use reasonable efforts to cause any such individual or entity (including its
employees, agents and representatives) in possession of confidential information about the Company
in connection with the Acquisition Proposal to return or destroy all such information and all
materials, documents, analyses and other work product containing or derived from that information.

               (b) Notwithstanding the foregoing, the restrictions and obligations contained in this Section
6.6 shall not apply with respect to any action of an officer, director, agent or representative of
Seller who is a member of the Board of Directors of the Company taken in such member’s capacity as
such in the good faith exercise of such member’s fiduciary duties under applicable law.

               (c) This Section 6.6 shall terminate on the earlier of the Closing and the termination of this
Agreement.

ARTICLE VII

CONDITIONS TO THE CLOSING

          Section 7.1 Conditions to Each Party’s Obligation to Effect the Closing

          The respective obligation of each party to effect the Closing shall be subject to the
satisfaction at or prior to the Closing Date of each of the following conditions:

               (a) Statutes; Court Orders. No statute, rule or regulation shall have been enacted or
promulgated by any Governmental Entity which prohibits the consummation of the Closing; and there
shall be no order or injunction of a court of competent jurisdiction in effect precluding or
prohibiting consummation of the Closing, provided, however, that the parties shall use their
reasonable efforts to have any such order or injunction vacated or lifted; and

               (b) Antitrust Approval. The applicable waiting period under the HSR Act and under any
comparable foreign antitrust laws, if applicable as reasonably determined by Purchaser and Seller,
shall have expired or been terminated.

13

 

          Section 7.2 Conditions to Obligations of Purchaser to Effect the Closing

          The obligations of Purchaser to consummate the Closing shall be subject to the
satisfaction on or prior to the Closing Date of each of the following conditions:

               (a) Government Action. There shall not be threatened or pending any suit, action or
proceeding by any Governmental Entity seeking to restrain or prohibit the consummation of the
Closing or the performance of any of the other Transactions or seeking to impose material
limitations on the ability of Purchaser effectively to exercise full rights of ownership of the
Shares, including the right to vote the Shares.

               (b) Representations and Warranties. The representations and warranties of Seller set
forth in this Agreement shall be true and correct as of the Closing in all material respects as
though made as of the Closing.

               (c) Seller Breach. Seller shall not have failed to perform in any material respect
any material obligation or to comply in any material respect with any covenant to be performed or
complied with by Seller under this Agreement.

               (d) Shareholder Rights Plan. The Company shall not have adopted a shareholder rights
plan or so-called “poison pill” that would be triggered by Purchaser’s acquisition of the Shares at
Closing pursuant to this Agreement; and

               (e) Termination. The Transactions shall not have been terminated or abandoned in
accordance with the terms of this Agreement.

               (f) Proxy. Seller shall have executed and delivered the Proxy.

The foregoing conditions are for the sole benefit of Purchaser, may be waived by Purchaser, in
whole or in part, at any time and from time to time in the sole discretion of Purchaser. The
failure by Purchaser at any time to exercise any of the foregoing rights shall not be deemed a
waiver of any such right and each such right shall be deemed an ongoing right which may be asserted
at any time and from time to time.

          Section 7.3 Conditions to Obligations of Seller to Effect the Closing

          The obligations of Seller to consummate the Closing shall be subject to the satisfaction
on or prior to the Closing Date of each of the following conditions:

               (a) Government Action. There shall not be threatened or pending any suit, action or
proceeding by any Government Entity seeking to restrain or prohibit the consummation of the Closing
or the performance of any of the other Transactions, or seeking to impose material limitations on
the ability of Seller effectively to exercise full rights of ownership of the Purchaser Shares,
including the right to vote the Purchaser Shares.

               (b) Representations and Warranties. The representations and warranties of Purchaser
set forth in this Agreement shall be true and correct as of the Closing in all material respects as
though made as of the Closing; provided, however, that the representations and warranties contained
in Section 5.6 shall be true and correct as of the Closing as though made as of the Closing, except
for such inaccuracies and breaches as have or could reasonably be expected to have a Material
Adverse Effect on Purchaser.

14

 

               (c) Purchaser Breach. Purchaser shall not have failed to perform in any material
respect any material obligation or to comply in any material respect with any covenant of the
Purchaser to be performed or complied with by it under this Agreement; and

               (d) Termination. The Transactions shall not have been terminated or abandoned in
accordance with the terms of this Agreement.

The foregoing conditions are for the sole benefit of Seller, may be waived by Seller, in whole or
in part, at any time and from time to time in the sole discretion of Seller. The failure by Seller
at any time to exercise any of the foregoing rights shall not be deemed a waiver of any such right
and each such right shall be deemed an ongoing right which may be asserted at any time and from
time to time.

ARTICLE VIII

TERMINATION, AMENDMENT AND WAIVER

          Section 8.1 Termination

          The Transactions may be terminated or abandoned at any time prior to the Closing Date:

               (a) By the mutual written consent of Purchaser and Seller;

               (b) By Purchaser or Seller if any Governmental Entity shall have issued an order, decree or
ruling or taken any other action (which order, decree, ruling or other action the parties hereto
shall use their best reasonable efforts to lift) which permanently restrains, enjoins or otherwise
prohibits the consummation of the Closing and such order, decree, ruling or other action shall have
become final and non-appealable;

               (c) By Purchaser, if there has been a breach of or any failure to perform any representation,
warranty covenant or other agreement of Seller contained in this Agreement, which breach or failure
(i) would cause a condition set forth in Section 7.2(b) or (c) not to be satisfied, and (ii) cannot
be or has not been cured (A) within 20 days after Seller has received written notice of such breach
or failure from Purchaser or (B) July 31, 2007, whichever occurs first;

               (d) By Seller, if there has been a breach of or any failure to perform any representation,
warranty covenant or other agreement of Purchaser contained in this Agreement, which breach or
failure (i) would cause a condition set forth in Section 7.3(b) or (c) not to be satisfied, and
(ii) cannot be or has not been cured (A) within 20 days after Purchaser has received written notice
of such breach or failure from Seller or (B) July 31, 2007, whichever occurs first;

               (e) By Purchaser on or after July 31, 2007, if the Closing shall not have theretofore occurred
and if the failure of the Closing to occur is not the result of a breach of a representation,
warranty, covenant or other agreement contained in this Agreement by Purchaser; or

               (f) By Seller on or after July 31, 2007, if the Closing shall not have theretofore occurred
and if the failure of the Closing to occur is not the result of a breach of a representation,
warranty, covenant or other agreement contained in this Agreement by Seller.

          Section 8.2 Effect of Termination

15

 

          In the event of the termination or abandonment of the Transactions by any party hereto
pursuant to the terms of this Agreement, written notice thereof shall forthwith be given to the
other party or parties specifying the provision hereof pursuant to which such termination or
abandonment of the Transactions is made, and there shall be no liability or obligation thereafter
on the part of Purchaser or Seller except for fraud or for willful breach of this Agreement prior
to such termination or abandonment of the Transactions.

ARTICLE IX

MISCELLANEOUS

          Section 9.1 Fees and Expenses

          All costs and expenses incurred in connection with this Agreement and the consummation of
the Transactions shall be paid by the party incurring such expenses, except as specifically
provided to the contrary in this Agreement.

          Section 9.2 Amendment and Modification

          This Agreement may be amended, modified and supplemented in any and all respects, but
only by a written instrument signed by all of the parties hereto expressly stating that such
instrument is intended to amend, modify or supplement this Agreement.

          Section 9.3 Notices

          All notices and other communications hereunder shall be in writing and shall be deemed
given when mailed, delivered personally, telecopied (which is confirmed) or sent by an overnight
courier service, such as Federal Express, to the parties at the following addresses (or at such
other address for a party as shall be specified by such party by like notice):

	 	 	 	 	 	 	 
	 

	 	if to Purchaser, to:	 	 	 	 
	 	 	 	 	Oplink Communications, Inc.
	 	 	 	 	46335 Landing Parkway
	 	 	 	 	Fremont, CA 94538
	 

	 	 	 	Attention:
	 	Joseph Y. Liu
	 

	 	 	 	 	 	President and Chief Executive Officer
	 

	 	 	 	Telephone: (510) 933-7200

	 

	 	 	 	Telecopy: (510) 933-7300

	 
	 	 	 	 	 	 
	 

	 	 	 	with a copy to:
	 
	 	 	 	 	 	 
	 	 	 	 	Wilson Sonsini Goodrich & Rosati, P.C.

650 Page Mill Road

Palo Alto, CA 94304
	 

	 	 	 	Attention: Carmen Chang

	 

	 	 	 	Telephone: (650) 493-9300

	 

	 	 	 	Telecopy: (650) 493-6811

16

 

	 	 	 	 	 	 	 	 	 
	 
	 	if to Seller, to:	 	 	 	 	 	 
	 	 	 	 	Legal Department
	 	 	 	 	The Furukawa Electric Co., Ltd.
	 	 	 	 	2-3, Marunouchi 2-chome, Chiyoda-ku
	 	 	 	 	Tokyo 100-8322, Japan
	 	 	 	 	Attention: Nagamasa Honda
	 	 	 	 	Telephone: +81 (03) 3286-3039
	 	 	 	 	Telecopy: +81 (03) 3286-3910
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	with a copy to:
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	Skadden, Arps, Slate, Meagher & Flom LLP

525 University Ave., Suite 1100

Palo Alto, CA 94301

	 	 	 	 	Attention: Kenton J. King
	 	 	 	 	Telephone: (650) 470-4530
	 	 	 	 	Telecopy: (650) 470-4570

          Section 9.4 Counterparts

          This Agreement may be executed in two or more counterparts, all of which shall be
considered one and the same agreement and shall become effective when two or more counterparts have
been signed by each of the parties and delivered to the other parties.

          Section 9.5 Entire Agreement; No Third-Party Beneficiaries

          This Agreement (a) constitutes the entire agreement and supersede all prior agreements
and understandings, both written and oral, among the parties with respect to the subject matter
hereof and (b) is not intended to confer upon any Person other than the parties hereto any rights
or remedies hereunder.

          Section 9.6 Severability

          Any term or provision of this Agreement that is held by a court of competent jurisdiction
or other authority to be invalid, void or unenforceable in any situation in any jurisdiction shall
not affect the validity or enforceability of the remaining terms and provisions hereof or the
validity or enforceability of the offending term or provision in any other situation or in any
other jurisdiction. If the final judgment of a court of competent jurisdiction or other authority
declares that any term or provision hereof is invalid, void or unenforceable, the parties agree
that the court making such determination shall have the power to reduce the scope, duration, area
or applicability of the term or provision, to delete specific words or phrases, or to replace any
invalid, void or unenforceable term or provision with a term or provision that is valid and
enforceable and that comes closest to expressing the intention of the invalid or unenforceable term
or provision.

          Section 9.7 Governing Law

          This Agreement shall be governed by and construed in accordance with the laws of the
State of Delaware without giving effect to the principles of conflicts of law thereof.

          Section 9.8 Venue

17

 

          Each of the parties hereto (a) consents to submit itself to the personal jurisdiction of
any federal court located in the State of Delaware or any Delaware state court in the event any
dispute arises out of this Agreement or any of the Transactions, (b) agrees that it shall not
attempt to deny or defeat such personal jurisdiction by motion or other request for leave from any
such court and (c) agrees that it shall not bring any action relating to this Agreement or any of
the Transactions in any court other than a federal or state court sitting in the State of Delaware.

          Section 9.9 Time of Essence

          Each of the parties hereto hereby agrees that, with regard to all dates and time periods
set forth or referred to in this Agreement, time is of the essence.

          Section 9.10 Extension and Waiver

          At any time prior to the Closing Date, either party hereto may (a) extend the time for
the performance of any of the obligations or other acts of the other party, (b) waive any
inaccuracies in the representations and warranties of the other party contained in this Agreement
or in any document delivered pursuant to this Agreement or (c) waive compliance by the other
parties with any of the agreements or conditions contained in this Agreement. Any agreement on the
part of a party to any such extension or waiver shall be valid only if set forth in an instrument
in writing signed by or on behalf of such party. The failure of any party to this Agreement to
assert any of its rights under this Agreement or otherwise shall not constitute a waiver of those
rights.

          Section 9.11 Assignment

          Neither this Agreement nor any of the rights, interests or obligations hereunder shall be
assigned by any of the parties hereto (whether by operation of law or otherwise) without the prior
written consent of the other parties, except that Purchaser may assign, in its sole discretion, all
(but not less than all) of its rights and interests hereunder to any direct or indirect wholly
owned Subsidiary of Purchaser. Subject to the preceding sentence, this Agreement shall be binding
upon, inure to the benefit of and be enforceable by the parties and their respective successors and
assigns.

[Signature page follows]

18

 

          IN WITNESS WHEREOF, Seller and Purchaser have executed and delivered this Agreement or have
caused this Agreement to be executed and delivered by their respective officers thereunto duly
authorized, all as of the date first written above.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	THE FURUKAWA ELECTRIC CO., LTD.	 	 	 	OPLINK COMMUNICATIONS, INC.	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	By:	 	/s/ Hideo Sakura	 	 	 	By:	 	/s/ Joseph Y. Liu	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Name:
	 	Hideo Sakura
	 	 	 	 	 	Name:
	 	Joseph Y. Liu	 	 
	 

	 	Title:
	 	Chief Financial Officer
	 	 	 	 	 	Title:
	 	Chief Executive Officer	 	 

 

 

Exhibit A

Form of Proxy

IRREVOCABLE PROXY

     The undersigned, Furukawa Electric Co., Ltd., a Japanese corporation (“Seller”), hereby
irrevocably (to the fullest extent permitted by law) appoints Oplink Communications, Inc., a
Delaware corporation (“Purchaser”), acting through any of its Chief Executive Officer or Chief
Financial Officer, as the sole and exclusive attorneys and proxies of the undersigned, with full
power of substitution and resubstitution, to vote and exercise all voting and related rights (to
the full extent that the undersigned is entitled to do so) with respect to all of the shares of
capital stock of Optical Communication Products, Inc., a Delaware corporation (the “Company”) owned
by Seller, and any and all other shares or equity securities of the Company issued or issuable in
respect thereof on or after the date hereof (collectively, the “Shares”), in accordance with the
terms of this Irrevocable Proxy until the Expiration Date (as defined below); provided, however,
that such proxy and voting and related rights are expressly limited to the matters discussed in
clauses (i) through (iii) in the fourth paragraph of this Irrevocable Proxy. Upon the
undersigned’s execution of this Irrevocable Proxy, any and all prior proxies given by the
undersigned with respect to any Shares are hereby revoked and the undersigned agrees not to grant
any subsequent proxies with respect to the Shares until after the Expiration Date.

     This Irrevocable Proxy is irrevocable to the fullest extent permitted by law, is coupled with
an interest, is granted pursuant to that certain Stock Purchase Agreement of even date herewith by
and between Purchaser and Seller (the “Purchase Agreement”), and is granted in consideration of
Purchaser entering into the Purchase Agreement.

     As used herein, the term “Expiration Date” shall mean the earlier to occur of (i) such date
and time as the Purchase Agreement shall have been terminated pursuant to Article VIII thereof,
(ii) the date and time of the Closing under the Purchase Agreement, or (iii) July 31, 2007.

     The attorneys and proxies named above, and each of them, are hereby authorized and empowered
by the undersigned, at any time prior to the Expiration Date, to act as the undersigned’s attorney
and proxy to vote the Shares, and to exercise all voting, consent and similar rights of the
undersigned with respect to the Shares (including, without limitation, the power to execute and
deliver written consents) at every annual, special, adjourned or postponed meeting of shareholders
of the Company and in every written consent in lieu of such meeting:

          (i) in favor of each of the transactions contemplated by the Purchase Agreement and any action
required in furtherance thereof;

          (ii) against approval of any proposal made in opposition to, or in competition with, the
consummation of the transactions contemplated by Purchase Agreement and against any action or
agreement that would result in a breach of any representation, warranty, covenant, agreement or
other obligation of Seller in the Purchase Agreement; and

          (iii) against any of the following actions (other than those actions that relate to any
acquisition by Purchaser of securities of the Company): (a) any purchase or acquisition by any
individual, entity or “group” (as defined under Section 13(d) of the Securities Exchange Act of
1934, as amended, and the rules and regulations thereunder) of more than a 10% interest in the
total outstanding voting securities of the Company or any of its subsidiaries or any tender offer
or exchange offer that if

 

 

consummated would result in any individual, entity or group beneficially owning 10% or more of
the total outstanding voting securities of the Company or any of its subsidiaries, (b) any merger,
consolidation, business combination or similar transaction involving the Company or any of its
subsidiaries, (c) any sale, lease (other than in the ordinary course of business), exchange,
transfer, license (other than in the ordinary course of business), acquisition or disposition of
more than 10% of the assets of the Company (including its subsidiaries, taken as a whole), (d) any
liquidation or dissolution of the Company, or (e) any acquisition of any of the Shares by any
individual, entity or group.

     The attorneys and proxies named above may not exercise this Irrevocable Proxy on any other
matter. The undersigned may vote the Shares on all other matters.

     Any obligation of the undersigned hereunder shall be binding upon the successors and assigns
of the undersigned.

     This Irrevocable Proxy shall terminate, and be of no further force and effect, automatically
upon the Expiration Date.

	 	 	 	 	 	 	 	 	 
	Dated: April __, 2007	 	THE FURUKAWA ELECTRIC CO., LTD.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	Title:<PAGE>

                                                                    EXHIBIT 10.3

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

                                                               Execution Version

================================================================================

                                SUPPLY AGREEMENT

                              EVERGREEN SOLAR, INC.

                                       and

                              DC CHEMICAL CO., LTD.

                           Dated as of April 17, 2007

================================================================================

<PAGE>

                                Table of Contents

<TABLE>
<CAPTION>
                                                                            Page
                                                                            ----
<S>                                                                         <C>
ARTICLE I SUPPLY OF PRODUCT..............................................     1
   Section 1.1  Quantity and Price of Product............................     1
   Section 1.2  Delivery Start Date; Monthly Quantity....................     2
   Section 1.3  Annual Quantity Increases................................     2
   Section 1.4  Additional Supply........................................     2
   Section 1.5  Monthly Quantity Variance................................     2
   Section 1.6  Disposition of Product Sold..............................     3
   Section 1.7  Delivery Schedule........................................     3

ARTICLE II PAYMENTS AND PRICING..........................................     3
   Section 2.1  Price Adjustment.........................................     3
   Section 2.2  Threshold................................................     4

ARTICLE III DELIVERY AND SHIPPING........................................     4
   Section 3.1  Delivery.................................................     4

ARTICLE IV PAYMENTS......................................................     4
   Section 4.1  Payments.................................................     4
   Section 4.2  Taxes....................................................     5

ARTICLE V SPECIFICATIONS; INSPECTION OF PRODUCT; PLANT...................     5
   Section 5.1  Specifications...........................................     5
   Section 5.2  Inspection of Product....................................     5
   Section 5.3  Plant....................................................     6

ARTICLE VI CONFIDENTIAL INFORMATION......................................     6
   Section 6.1  Confidential Information.................................     6
   Section 6.2  Restrictions On Use and Disclosure.......................     6
   Section 6.3  Exclusions...............................................     6
   Section 6.4  Compelled Disclosure.....................................     6
   Section 6.5  Press Releases...........................................     6
   Section 6.6  Confidentiality of Agreement.............................     7

ARTICLE VII WARRANTIES; DISCLAIMER; REMEDIES.............................     7
   Section 7.1  Disclaimer of Warranties.................................     7
</TABLE>

                                        i

<PAGE>

                                Table of Contents
                                   (continued)

<TABLE>
<CAPTION>
                                                                            Page
                                                                            ----
<S>                                                                         <C>
   Section 7.2  Title....................................................     7
   Section 7.3  Damaged or Defective Product.............................     7
   Section 7.4  Failure to Purchase by Buyer.............................     8
   Section 7.5  Failure to Supply by DCC.................................     8
   Section 7.6  Limitation of Liability..................................     8
   Section 7.7  Indemnity................................................     8

ARTICLE VIII TERM AND TERMINATION........................................     8
   Section 8.1  Term.....................................................     8
   Section 8.2  Termination..............................................     8
   Section 8.3  Effect of Termination....................................     9

ARTICLE IX MISCELLANEOUS.................................................    10
   Section 9.1  Force Majeure............................................    10
   Section 9.2  Governmental Approvals...................................    10
   Section 9.3  Hierarchy among this Agreement and Purchase Orders.......    10
   Section 9.4  Independent Contractors..................................    10
   Section 9.5  Notice...................................................    10
   Section 9.6  Amendment; No Waiver.....................................    11
   Section 9.7  Governing Law; Jurisdiction..............................    11
   Section 9.8  Entire Agreement.........................................    12
   Section 9.9  Assignment...............................................    12
   Section 9.10 Successors...............................................    12
   Section 9.11 Headings.................................................    12
   Section 9.12 Word Meanings............................................    12
   Section 9.13 Language.................................................    12
   Section 9.14 Counterparts.............................................    12
</TABLE>

                                       ii

<PAGE>

                                SUPPLY AGREEMENT

     THIS SUPPLY AGREEMENT (this "Agreement") is entered into as of April 17,
2007 (the "Effective Date"), by and between DC Chemical Co., Ltd., a corporation
organized under the laws of Korea, having its registered office at Oriental
Chemical Building, 50, Sogong-Dong, Jung-Gu, Seoul, 100-718, Korea ("DCC"), and
Evergreen Solar Inc., a company organized under the laws of the state of
Delaware, having its registered office at 138 Bartlett Street, Marlboro,
Massachusetts 01752 ("Buyer"). Each of DCC and Buyer is referred to herein
individually as a "Party" and collectively as the "Parties."

                                     RECITAL

     WHEREAS, DCC will build and operate a production facility ("Plant") for the
manufacture of ultra-high purity poly-crystalline silicon made from the
decomposition of chlorosilane in reactors (the "Product");

     WHEREAS, Buyer manufactures poly-crystalline wafers for use in the
production of solar modules; and

     WHEREAS, DCC desires to sell, and Buyer desires to purchase, Products
pursuant to the terms and conditions of this Agreement.

     NOW, THEREFORE, the Parties agree as follows:

                                    ARTICLE I

                                SUPPLY OF PRODUCT

     Section 1.1 Quantity and Price of Product. Subject to Sections 1.3 and 1.4,
DCC hereby agrees to sell and Deliver to Buyer, and Buyer hereby agrees to
purchase and receive from DCC, the following quantities (as may be adjusted
pursuant to Sections 1.3 and 1.4) of Product for each of the periods (with
respect to each calendar year, the quantity indicated below for such calendar
year, the "Annual Quantity") and at the respective prices (as may be adjusted
pursuant to Sections 1.4, 2.1 and 2.2) set forth below:

<TABLE>
<CAPTION>
Calendar Year    Quantity      Price
-------------   ----------   ----------
<S>             <C>          <C>
    2008        [****] kgs   $[****]/kg
    2009        [****] kgs   $[****]/kg
    2010        [****] kgs   $[****]/kg
    2011        [****] kgs   $[****]/kg
    2012        [****] kgs   $[****]/kg
    2013        [****] kgs   $[****]/kg
    2014        [****] kgs   $[****]/kg
</TABLE>

<PAGE>

     Section 1.2 Delivery Start Date; Monthly Quantity. The Annual Quantity for
the calendar year 2008 shall be Delivered over substantially equal batches
during each month following the month the Parties shall agree as the starting
month for such Deliveries, with the approximate quantity of each such batch
determined by dividing [****] kgs by the number of calendar months remaining in
2008 after such starting month. The Parties currently contemplate that the
starting month for 2008 shall be [****]. For each calendar year beginning with
2009, DCC shall sell and Deliver, and Buyer shall receive and purchase, the
Annual Quantity for such calendar year in accordance with the delivery schedule
agreed to by the Parties pursuant to Section 1.7. The monthly quantities to be
Delivered shall herein be referred to as "Monthly Quantity" or "Monthly
Quantities," as the context shall require.

     Section 1.3 Annual Quantity Increases. Upon request by either Party, the
Parties shall negotiate in good faith the terms and conditions (including
quantities, pricing, payment terms, delivery terms and other relevant terms
relating to purchase and sale of Products) of any increase in Annual Quantity
for any particular calendar year, provided that due consideration is given to
DCC's supply obligations to its other customers and DCC's added costs of
producing and shipping any product under an excess order.

     Section 1.4 Additional Supply. In the event DCC determines, at its sole
discretion, that it may have additional poly-crystalline silicon available for
sale to Buyer, DCC shall notify Buyer of such additional availability and the
Parties shall negotiate in good faith the terms and conditions (including
quantities, pricing, payment terms, delivery terms and other relevant terms
relating to purchase and sale of Products) of any increase in Annual Quantity
for any particular calendar year, provided that due consideration is given to
DCC's supply obligations to its other customers and DCC's added costs of
producing and shipping any product under an excess order.

     The quantity of Product agreed to be Delivered by DCC to Buyer pursuant to
any adjustment set forth in Sections 1.3 and 1.4 that is agreed to in writing by
the Parties shall be deemed to be the Annual Quantity for the applicable
calendar year, in lieu of the quantity or quantities set forth in the table in
Section 1.1 above.

     Section 1.5 Monthly Quantity Variance. If there is any deficiency in the
quantity of Product to be Delivered by DCC with respect to any Monthly Quantity,
then remedial measures in respect of such deficiency shall be discussed between
DCC and Buyer pursuant to which DCC and Buyer shall find an amicable solution to
such deficiency, including rolling over the deficient quantity of the Product to
one or more subsequent Monthly Quantities. In no event shall such deficiency in
the actual Monthly Quantity Delivered be deemed to be a default under this
Agreement, provided however, DCC shall have exerted [****] efforts to Deliver
the applicable Monthly Quantity and provided that in the event (i) such
deficiency is greater than [****]% of such Monthly Quantity, DCC shall Deliver
[****] of such deficiency as part of the [****] and (ii) to the extent the sum
of the actual Monthly Quantities Delivered during a calendar year is [****]%
less than the sum of the scheduled Monthly Quantities, DCC shall exert [****]
efforts to deliver all of such deficiency in the [****]

                                       2

<PAGE>

     Section 1.6 Disposition of Product Sold. Buyer shall utilize the Product
for its manufacturing purposes and shall not re-sell the Product, or become a
re-seller or distributor of the Product, provided however, Buyer may resell the
Product (i) [****] and (ii) [****].

     Section 1.7 Delivery Schedule. At least [****] days prior to the beginning
of each calendar year, other than the 2008 calendar year, which shall be subject
to Section 1.2, the Parties shall discuss and consult with each other as to
timing and quantities of Monthly Quantities to be Delivered during such calendar
year. Absent agreement by the Parties to the contrary, DCC shall Deliver to
Buyer the applicable Annual Quantity over substantially equal batches during
each month of such calendar year, pursuant to a monthly purchase order to be
Delivered by Buyer to DCC at least [****] days prior to the beginning of such
month, which purchaser order shall specify the agreed Monthly Quantity to be
Delivered in such month.

                                   ARTICLE II

                              PAYMENTS AND PRICING

     Section 2.1 Price Adjustment. The price per kilogram of Product sold during
any calendar year (the "Relevant Year") shall be subject to adjustment in
accordance with the following:

     If the absolute value of "(A - B)/B" is equal to or greater than "[****]%",
then the new price per kilogram of Product for the Relevant Year (the "Adjusted
Price") shall equal C.

     Where:

     A = [****];

     B = [****];

     C = [****];

     [****]

                                        3

<PAGE>

     [****]

     For the avoidance of doubt, DCC shall calculate and determine whether the
price for Products for a Relevant Year is required to be adjusted in accordance
with this Section 2.1 promptly as practicable, and notify Buyer in writing of
any adjustment to the price, if any. In the event that a determination has been
made that an adjustment is required to be made to the price in respect of any
Relevant Year, such adjustment shall apply to any Monthly Quantities to be
Delivered during such calendar year, but [****].

     Section 2.2 Threshold. If the Adjusted Price for any of (i) the [****]
calendar years is less than [****]% or greater than [****]% or (ii) the [****]
calendar years is less than [****]% or greater than [****]%, in each case, of
the respective prices for such years set forth in the table in Section 1.1, then
the actual amount of the adjustment to be applied to determine the Adjusted
Price for such calendar year shall be discussed between DCC and Buyer pursuant
to which DCC and Buyer shall agree on a mutually acceptable adjustment amount.

                                   ARTICLE III

                              DELIVERY AND SHIPPING

     Section 3.1 Delivery. The Product shall be delivered to Buyer Ex Works
(Incoterms 2000); accordingly, the availability of a Monthly Quantity for
receipt by Buyer at the Plant shall constitute "Delivery" for the purposes of
this Agreement.

                                   ARTICLE IV

                                    PAYMENTS

     Section 4.1 Payments. Contemporaneously with each Delivery under this
Agreement, DCC shall issue an invoice to Buyer for the Products being Delivered.
Invoices may be sent by any normally reliable means, including electronically,
facsimile, hand delivery or other methods. Buyer shall pay all amounts due under
any invoice submitted by DCC within forty-five (45) days from the date of such
invoice. All payments made to DCC shall be made in cash by wire transfer to an
account specified by DCC. All such payments shall be free and clear of all
withholdings, taxes, set-off, encumbrances of any kind. Late payment interest of
[****] percent ([****])% per annum may be assessed by DCC on payment past due
from the payment due date to the date payment is received.

                                       4

<PAGE>

     This Agreement is a [****] such that Buyer [****] the Annual Quantity (as
adjusted pursuant to this Agreement) of Product Delivered for each of the
calendar years set forth in the table in Section 1.1, at the prices set forth in
the same table (as adjusted pursuant to this Agreement). [****]

     Section 4.2 Taxes. DCC shall be responsible for all sales, use, excise,
value-added or other taxes, tariffs, duties or assessments, including interest
and penalties, levied or imposed at any time by any governmental authority
arising from or relating to the supply of Product pursuant to this Agreement.
Buyer shall be responsible for all sales, use, excise, value-added or other
taxes, tariffs, duties or assessments, including interest and penalties, levied
or imposed at any time by any governmental authority arising from or relating to
purchase, any use of the Product upon Delivery.

                                    ARTICLE V

                  SPECIFICATIONS; INSPECTION OF PRODUCT; PLANT

     Section 5.1 Specifications. All of the Product to be supplied by DCC shall
meet the specifications set forth in Schedule 1, which may be amended from time
to time upon mutual agreement (the "Specifications").

     Section 5.2 Inspection of Product. Unless Buyer notifies DCC in writing (i)
in respect of the first [****] Monthly Quantities, within [****] days, or (ii)
in respect of all Monthly Quantities beginning with the [****] Monthly Quantity,
within [****] days, of Delivery that any Product does not conform to the
Specification, such shipment shall be deemed to conform to the Specifications.
If Buyer desires to submit a claim that any Product does not meet the
Specifications, Buyer shall submit documentary evidence of any third party
inspection as evidence of such claim, whereupon DCC shall have the right to
undertake its own inspection. Any disputes as to whether certain Products meet
the Specification shall be settled in accordance with Section 9.7. Buyer's
failure to notify DCC within the time period set forth in the first sentence of
this paragraph with respect to any Products Delivered shall irrevocably release
DCC from any obligations or liabilities for defective Product, including but not
limited to any warranties under Section 7.3, with regard to such Products
(including for any latent defects, if any).

                                        5

<PAGE>

     Section 5.3 Plant. Until completion of the Plant, DCC shall provide to
Buyer quarterly progress reports on the progress of construction of the Plant.
Buyer shall have the right to request periodic visits to the Plant while the
Plant is being constructed and DCC and Buyer shall discuss in good faith the
timing and frequency of such visits, it being agreed that such visits shall take
place no sooner than one month from the date of such request, during normal
business hours and not unreasonably disrupt the ordinary course of business and
construction of the Plant.

                                   ARTICLE VI

                            CONFIDENTIAL INFORMATION

     Section 6.1 Confidential Information. Any information provided by one Party
to the other Party which is confidential in nature shall be deemed confidential
information (the "Confidential Information").

     Section 6.2 Restrictions On Use and Disclosure. Once any Confidential
Information is provided by one Party (the "Disclosing Party") to the other Party
(the "Receiving Party"), the Receiving Party shall, and shall cause its
respective directors, officers, principals, members, employees, consultants,
contractors, agents, advisors and representatives (collectively,
"Representatives") (i) not to deliver, divulge, disclose or communicate, or
permit to be delivered, divulged, disclosed or communicated, to any third party,
directly or indirectly, any Confidential Information, (ii) to disclose or give
access to, or permit to be disclosed or given access to, any such Confidential
Information, other than those of its Representatives that have a need to know
such Confidential Information for the purposes of performing the Receiving
Party's obligations under this Agreement, (iii) to ensure that such
Representatives keep the Confidential Information confidential, and (iv) to take
all other reasonably necessary or advisable actions to preserve the
confidentiality and security of the Confidential Information.

     Section 6.3 Exclusions. The foregoing restrictions contained in Section 6.2
shall not apply to Confidential Information that (i) is or becomes generally
known to the public through no fault of the Receiving Party or its
Representatives including without limitation any acts or omissions of the
Receiving Party or its Representatives in violation of this Agreement, (ii) is
disclosed to the Receiving Party without obligation of confidentiality by a
third person who has a right to make such disclosure and the Receiving Party is
able to document the independent source, (iii) was in the possession of the
Receiving Party at or prior to the time of receipt from the Disclosing Party, as
evidenced by contemporaneous, corroborated written records, without being
subject to another obligation of confidentiality or (iv) is independently
developed by the Receiving Party without reference to the Disclosing Party's
Confidential Information.

     Section 6.4 Compelled Disclosure. If the Receiving Party or its
Representatives is required to disclose any Confidential Information otherwise
than in accordance with this Agreement by government authority or pursuant to
any applicable laws, regulations, or judicial orders, the Receiving Party shall
provide the Disclosing Party with prompt prior written notice of such request or
requirement prior to disclosing the Confidential Information.

     Section 6.5 Press Releases. Except as permitted under this Article VI,
neither Party shall issue any press release or make any public announcement
which includes or otherwise uses the

                                       6

<PAGE>

name of the other Party, or relates to this Agreement or to the performance
hereunder in any public statement or document, without the prior review and
written approval of the other Party, which approval shall not be unreasonably
withheld or delayed. Any such review shall be completed as soon as practicable,
but in any event within five (5) days of receipt of the proposed statement or
document. Notwithstanding the foregoing, the Parties shall endeavor in good
faith to agree upon and issue a joint press release announcing the relationship
between the parties promptly after the date hereof.

     Section 6.6 Confidentiality of Agreement. The terms and conditions of this
Agreement shall be treated as Confidential Information and shall not be
disclosed by either Party to any third party, except (i) with the Party's
consent, which consent shall not be unreasonably withheld or delayed, (ii) as
may be required by law or regulation or rules of a nationally recognized stock
exchange, (iii) to legal counsel, accountants, investors, lenders and financial
advisors, (iv) in connection with any action or claim to enforce its rights
hereunder or in any related transaction and (v) as reasonably required in
connection with a bona fide financing or sale transaction in which all or
substantially all of a Party's business, assets or equity capital is proposed to
be sold.

                                   ARTICLE VII

                        WARRANTIES; DISCLAIMER; REMEDIES

     Section 7.1 Disclaimer of Warranties. EXCEPT AS SET FORTH IN THIS ARTICLE
VII, DCC DISCLAIMS ANY AND ALL WARRANTIES, EXPRESS OR IMPLIED, INCLUDING ANY
WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE OR
NON-INFRINGEMENT.

     Section 7.2 Title. DCC warrants that upon Delivery of any Products, (i)
Buyer shall have good title to such Products, free and clear of all liens,
encumbrances, security interests or other claims or rights that may affect
Buyer's ability to enjoy undisrupted use and possession of such Products and
(ii) to its knowledge, the manufacture, sale or use of the Products does not
infringe on any third party's patents.

     Section 7.3 Damaged or Defective Product. DCC warrants that the Products
Delivered shall conform to the Specifications. In the event of Delivery of
defective Products, upon notice by Buyer to DCC pursuant to Section 5.2 above,
DCC and Buyer shall discuss the appropriate method of curing such defect,
pursuant to which DCC and Buyer shall find an amicable solution to such damage
or defect, provided however, in the absence of agreement to the contrary, Buyer
agrees that its sole and exclusive remedy against DCC shall be limited to
either, at DCC's sole discretion, (i) the repair or replacement of defective
Product, at expedited means of delivery designated by Buyer (at Buyer's request)
at DCC's sole cost and expense or (ii) payment to Buyer (not to exceed the
purchase price of the specific quantity of defective Products, provided however,
DCC shall first allocate Products to Buyer under option (i) above in a manner so
that Buyer is treated no less favorably than if DCC had allocated all available
Products to all of its customers on a pro rata and equitable basis after also
taking into account DCC's existing contractual obligations to its customers

                                       7

<PAGE>

     Section 7.4 Failure to Purchase by Buyer. If Buyer fails to take Delivery
of or purchase [****] the Annual Quantity for any calendar year for any reason
whatsoever, DCC shall be entitled to the remedies set forth in Section 4.1,
provided that failure by Buyer to purchase [****] such Annual Quantity made
available for Delivery shall not constitute a breach of this Agreement if DCC
[****] in respect of such [****] Annual Quantity in accordance with the [****]
for such Annual Quantity.

     Section 7.5 Failure to Supply by DCC. If DCC is unable, after exerting
commercially reasonable efforts, to sell or Deliver all or any portion of the
first [****] kilograms of Product, Buyer's sole remedy pursuant to this
Agreement shall be to terminate this Agreement in accordance with Section
8.2(d).

     Section 7.6 Limitation of Liability. BUYER'S REMEDIES IN RESPECT OF ANY
CLAIM RELATING TO DEFECTIVE PRODUCTS SHALL BE LIMITED BY AND SUBJECT TO SECTION
7.3. IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER PARTY FOR ANY
SPECIAL, EXEMPLARY, PUNITIVE, INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES,
WHETHER ARISING OUT OF CONTRACT, TORT, STRICT LIABILITY OR OTHERWISE RESULTING
FROM OR RELATED TO THIS AGREEMENT (WHETHER OR NOT SUCH PARTY KNEW OR SHOULD HAVE
KNOWN OF THE POSSIBILITY OF ANY SUCH DAMAGES).

     Section 7.7 Indemnity. A Party, (the "Indemnitor") shall indemnify, defend
and hold the other Party and its officers, directors, employees, consultants,
agents and other representatives (the "Indemnitees") harmless from and against
any and all liability, damage, loss, cost or expense (including reasonable
attorneys' fees) arising out of third party claims or lawsuits (a "Claim")
related to or arising out of the Indemnitor's breach of any of its covenants,
representations or warranties set forth in this Agreement. Upon the assertion of
any such claim or suit, the Indemnitees shall promptly notify the Indemnitor and
the Indemnitor shall appoint counsel reasonably acceptable to the affected
Indemnitees to represent such Indemnitees with respect to any claim or suit for
which indemnification is sought. The Indemnitees may select their own respective
counsel, at the Indemnitor's cost, upon notice to the Indemnitor; provided,
however, that they shall not settle any claim or suit hereunder without the
prior written consent of the Indemnitor.

                                  ARTICLE VIII

                              TERM AND TERMINATION

     Section 8.1 Term. This Agreement shall commence upon the Effective Date and
shall remain in full force until December 31, 2014, unless earlier terminated
pursuant to Section 8.2 below.

     Section 8.2 Termination.

          (a) Mutual Agreement. This Agreement may be terminated at any time
     upon mutual agreement of the Parties.

                                       8

<PAGE>

          (b) Termination For Breach. The failure by a Party to comply in any
     material respect with any of the obligations contained in this Agreement
     shall entitle the other Party to give notice to have the default cured. If
     such default is material and not cured within sixty (60) days after the
     receipt of such notice, or diligent steps have not begun to be taken to
     cure such default within thirty (30) days or if by its nature such default
     is not capable of being cured, the other Party shall be entitled to
     immediately terminate this Agreement.

          (c) Bankruptcy/Insolvency. If a Party (or its creditors or any other
     eligible party) files for its liquidation, bankruptcy, reorganization,
     composition, dissolution or other similar proceedings or arrangement, or if
     such Party is unable to pay any debts as they become due, has explicitly or
     implicitly suspended payment of any debts as they became due (except debts
     contested in good faith), or if the creditors of the such Party have taken
     over its management, or if the relevant financial institutions have
     suspended clearing house privileges with regard to such Party, then the
     other Party shall be entitled to immediately terminate this Agreement.

          (d) No Plant. Buyer shall have the right to terminate this Agreement
     if DCC shall have failed to Deliver the first [****] kilograms of Product
     to Buyer by [****]. DCC may terminate this Agreement if it believes,
     despite having exerted commercially reasonable efforts, that it will not be
     able to Deliver the first [****] kilograms of Product to Buyer. In the
     event of a termination of the Agreement by Buyer or DCC under this Section
     8.2(d), DCC's obligations to sell and Deliver, and Buyer's obligation to
     purchase and receive, Products and Annual Quantities for all calendar years
     not Delivered prior to such termination shall be deemed to be discharged in
     full without recourse.

          (e) No Closing. If the Closing (as defined in that certain Stock
     Purchase Agreement dated as of the date hereof by and between the Parties)
     does not occur on or prior to May 30, 2007, either Party shall have the
     right to terminate this Agreement, provided however, that the right to
     terminate this Agreement under this Section shall not be available to the
     Party whose breach of any representation, warranty, covenant or agreement
     under the such Stock Purchase Agreement was the cause of, or resulted in,
     the failure of such Closing to occur on or prior to such date.

     Section 8.3 Effect of Termination. Except as specifically set forth in
Section 8.2(d), the expiration or termination of this Agreement shall not
relieve the Parties of any obligations accruing prior to such termination, and
any such termination shall be without prejudice to the rights of either Party
against the other conferred on it by this Agreement. In addition, the provisions
of Article VI, VII, VIII and IX shall survive expiration or termination of this
Agreement for any reason for as long as necessary to permit their full
discharge.

                                       9

<PAGE>

                                   ARTICLE IX

                                  MISCELLANEOUS

     Section 9.1 Force Majeure. Neither Party shall be responsible for
suspension of its performance under this Agreement (other than the obligation of
payment) if such suspension is caused by a shortage of raw materials, fire,
flood, epidemics, quarantine restrictions, strikes, freight embargoes, severe
weather, riots, terrorism, acts of war, acts of God or the public enemy or
compliance with applicable laws, rules or regulations of any governmental
authority or by compliance with any order or decisions of any court, board or
other governmental authority or by any cause beyond the reasonable control of
such Party, whose effects are not capable of being overcome without commercially
unreasonable expense to such Party ("Force Majeure"); provided, however, that
this Section 9.1 shall not relieve a Party of its obligation to pay for any
Product or other payment required by this Agreement. In addition, if due to
Force Majeure, DCC is unable to produce sufficient Products to meet all demands
from customers, DCC shall (a) inform Buyer of such reduction in production of
Product; (b) undertake commercially reasonable efforts to overcome such
situation; and (c) have the right to allocate production among its customers in
a manner no less favorable to Buyer if DCC had allocated production among its
customers on a pro rata and equitable basis, after consulting with Buyer. Buyer
shall have no obligation to pay for Products not Delivered to Buyer if such
failure to Deliver is due to DCC claiming the occurrence of a Force Majeure. If
DCC is unable to meet its obligations hereunder due to a Force Majeure for more
than [****] consecutive days, Buyer shall have the right to terminate this
Agreement with written notice to DCC.

     Section 9.2 Governmental Approvals. DCC shall obtain all necessary Korean
governmental approvals required for the export of the Products to Buyer.
Evergreen shall obtain all necessary United States government approvals for the
import of Products by Buyer.

     Section 9.3 Hierarchy among this Agreement and Purchase Orders. If there is
a conflict between or among the terms of this Agreement, its Schedules or a
Purchase Order, the following order of precedence shall apply: this Agreement,
Schedules, and the Purchase Order; provided, however, a specific written
agreement to amend this Agreement (which contains a specific reference to
Section 9.6 of this Agreement) signed by the Parties that expresses the intent
of the Parties to modify this Agreement shall take precedence over this
Agreement.

     Section 9.4 Independent Contractors. The Parties hereto are independent
contractors. Neither Party to this Agreement nor any of its employees, customers
or agents, shall be deemed to be the representative, agent or employee of the
other Party for any purpose whatsoever, nor shall any of them have the right or
authority to assume or create an obligation of any kind or nature, express or
implied, on behalf of the other, nor to accept service of any legal claims or
notices addressed to or intended for the other.

     Section 9.5 Notice. For the purpose of this Agreement, notices and all
other communications provided for in the Agreement shall be in writing, shall be
deemed to have been duly given when received and may be sent by personal
delivery, facsimile (to the respective facsimile number set forth below or last
given by each Party to the other) or sent by express courier (prepaid and
addressed to the respective addresses set forth below or last given by each

                                       10

<PAGE>

Party to the other). The Parties' respective initial addresses for purposes of
receiving notices pursuant to this Agreement shall be as follows:

     If to DCC:                   If to Buyer:

     DC Chemical Co., Ltd.        Evergreen Solar, Inc.
     Oriental Chemical Building   138 Bartlett Street
     50, Sogong-Dong, Jung-Gu     Marlboro, MA 01752
     Seoul, 100-718               Attn: Chief Financial Officer
     Korea                        Fax: +1-508-357-2279
     Attn: Su Taik Baik
     Fax: +82-2-727-9559

     Section 9.6 Amendment; No Waiver. This Agreement cannot be amended,
changed, modified or supplemented orally, and no amendment, change, modification
or supplement of this Agreement shall be recognized nor have any effect, unless
the writing in which it is set forth is signed by both Parties, nor shall any
waiver of any of the provisions of this Agreement be effective unless in writing
and signed by the Party to be charged therewith. The failure of either Party to
enforce, at any time, or for any period of time, any provision hereof or the
failure of either Party to exercise any option herein shall not be construed as
a waiver of such provision or option and shall in no way affect that Party's
right to enforce such provision or exercise such option. No waiver of any
provision hereof shall be deemed to be, or shall constitute, a waiver of any
other provision, or with respect to any succeeding breach of the same provision.

     Section 9.7 Governing Law; Jurisdiction.

          (a) This Agreement shall be governed by and construed and enforced in
     accordance with the laws of Korea, without giving effect to the rules
     respecting its conflicts of law principles. The United Nations Convention
     on Contracts for the International Sale of Goods shall not apply.

          (b) The Parties hereby agree that any dispute arising under this
     Agreement, or in connection with any breach thereof, shall be finally
     resolved through binding arbitration conducted in accordance with the rules
     and procedures of the International Chamber of Commerce ("ICC") by one (1)
     arbitrator appointed in accordance with the applicable rules of the ICC.
     Any such arbitration shall be held in New York, New York. Any written
     evidence originally in a language other than English shall be submitted in
     English translation accompanied by the original or a true copy thereof. The
     costs of the arbitration, including administrative and arbitrators' fees,
     shall be shared equally by the Parties, and each Party shall bear its own
     costs and attorneys' and witness' fees incurred in connection with the
     arbitration. Any award may be entered in a court of competent jurisdiction
     for a judicial recognition of the decision and applicable orders of
     enforcement. The Parties may apply to any court of competent jurisdiction
     for a temporary restraining order, preliminary injunction, or other interim
     or conservatory relief, as necessary,

                                       11

<PAGE>

     without breach of this arbitration requirement and without any abridgment
     of the powers of the arbitrator.

          (c) If any portion of this Agreement is held invalid by a court or
     tribunal of competent jurisdiction, such portion shall be deemed to be of
     no force and effect and this Agreement shall be construed as if such
     portion had not been included herein, provided however, if the deletion of
     such provision materially impairs the commercial value of this Agreement to
     either Party, the parties shall attempt to renegotiate such provision in
     good faith.

     Section 9.8 Entire Agreement. This Agreement constitutes the entire
agreement between the Parties with respect to the subject matter hereof and
supersedes all prior agreements, understandings and arrangements, oral or
written, between the Parties with respect to the subject matter hereof. No
agreement or representations, oral or otherwise, express or implied, with
respect to the subject matter hereof have been made either Party which is not
expressly set forth in this Agreement.

     Section 9.9 Assignment. Either Party may assign or otherwise transfer this
Agreement to its subsidiary, affiliate or other successor in the event of a
merger, acquisition or change of control of such Party or to the purchaser of
substantially all of the assets of such Party. Except as provided in the
preceding sentence, neither Party shall have the right to assign or otherwise
transfer this Agreement, or any of its rights or obligations hereunder, without
the prior written consent of the other Party.

     Section 9.10 Successors. This Agreement shall inure to the benefit of and
be binding upon each of the Parties and their respective permitted successors
and assigns.

     Section 9.11 Headings. The headings used in this Agreement are for
convenience of reference only and shall not affect the meaning or construction
of this Agreement.

     Section 9.12 Word Meanings. Words such as herein, hereinafter, hereof and
hereunder refer to this Agreement as a whole and not merely to a section or
paragraph in which such words appear, unless the context otherwise requires. The
singular shall include the plural, and each masculine, feminine and neuter
references shall include and refer also to the others, unless the context
otherwise requires.

     Section 9.13 Language. The official language of this Agreement is English.
All contract interpretations, notices and dispute resolutions shall be in
English. Any attachments or amendments to this Agreement shall be in English.
Translations of any of these documents shall not be construed as official or
original versions of such documents.

     Section 9.14 Counterparts. This Agreement may be executed in counterparts
or duplicate originals, both of which shall be regarded as one and the same
instrument, and which shall be the official and governing version in the
interpretation of this Agreement.

                            [Signature page follows]

                                       12

<PAGE>

     IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be
executed by their respective duly authorized officers as of the Effective Date.

                                        DC CHEMICAL CO., LTD.

                                        By: /s/ Hyun Woo Shin
                                            ------------------------------------
                                        Name: Hyun Woo Shin
                                        Title: Vice-Chairman

                                        EVERGREEN SOLAR INC.

                                        By: /s/ Michael El-Hillow
                                            ------------------------------------
                                        Name: Michael El-Hillow
                                        Title: Chief Financial Officer

                      [Signature page to Supply Agreement]

<PAGE>

SCHEDULE 1

SPECIFICATIONS

TO BE DETERMINED BY MUTUAL AGREEMENT BASED ON TESTS CONDUCTED AT THE PLANT UPON
MANUFACTURE OF PRODUCT THEREIN

PRODUCT SHALL BE OF SOLAR GRADE

UNLESS OTHERWISE AGREED, THE PRODUCT SHALL BE SHIPPED TO BUYER IN CHUNKS

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