Document:

EX-10.6

 

Exhibit 10.6

[CONFIDENTIAL TREATMENT REQUESTED.

CONFIDENTIAL PORTIONS HAVE BEEN REDACTED

AND FILED SEPARATELY WITH THE COMMISSION]

[ENGLISH TRANSLATION]

FRAMEWORK AGREEMENT ON THE SALE AND PURCHASE OF SOLAR MODULES

entered into by and between

First Solar GmbH, Rheinstraße 4N, D-55116 Mainz, Germany (hereinafter referred to as “FS”)
represented by the managing director with single signature authority, Mr. Stephan Hansen,

and

Reinecke + Pohl Sun Energy AG, ABC-Strasse 19, 20354 Hamburg (hereinafter referred to as “Buyer”)
represented by the managing directors with joint signing authority, Mr. Patrik Arendt and Mr.
Schulz-Colmant.

FS and Buyer are each a “Party” and collectively the “Parties”.

	 	1.	 	Recitals

FS and Buyer enter into this framework agreement (hereinafter referred to as the “Agreement”) on
the sale and purchase of photovoltaic modules (hereinafter referred to as “Modules”).

	 	2.	 	Volume of Purchase and Specifications
	 
	 	2.1	 	Pursuant to the Price/Volume Table (as defined in Section 3.1), the Buyer hereby
purchases from FS Modules and shall be obligated to accept the delivery of such Modules as
agreed. Pursuant to the Price/Volume Table, FS hereby sells to Buyer such Modules and
shall be obligated to deliver them as agreed.
	 
	 	2.2	 	The Modules sold and purchased pursuant to Section 2.1 above shall have the
specifications set out in the Module Product Specification (Appendix A). Modules shall be
installed in a manner consistent with the System Design and Application Document (Appendix
B). The Buyer shall apply Modules only in systems that are mutually approved and
documented, such documentation being signed by the Parties using a System Design and
Application Document (Appendix B).
	 
	 	 	 	A System Design and Application Document (Appendix B) mutually approved and documented by
the Parties prior to the entering into of the Agreement shall be deemed a valid System
Design and Application Document (Appendix B) for the purposes of the Agreement.
Notwithstanding the provisions of this Section, any use of the Modules in a system that
is not mutually approved by the Parties in the System Design and Application Document
(Appendix B) requires FS’ prior written approval, which shall not be unreasonably
withheld. If no response is provided by FS within [***] of a written request for approval
by Buyer, submitted together with the documentation required for a new System Design and
Application Document, such new System Design and Application Document is deemed to be
mutually accepted.
	 
	 	2.3	 	Additional Module product types or changes to the specifications of Modules as set forth
in the Module Product Specification (Appendix A) above may be made by FS to the extent that
such changes or additions do not reduce the performance of the System or conflict with the
application and use of the Modules as documented in the approved System Design and
Application Document (Appendix B). FS will provide [***] written notice prior to delivering
such

 

			
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FILED SEPARATELY WITH THE COMMISSION.

 

 

	 	 	 	Modules for carriage as described in Section 4.
	 
	 	3.	 	Delivery Dates, Volumes and Prices
	 
	 	3.1	 	The Modules sold and purchased pursuant to Section 2.1 above shall be delivered in
installments in total annual numbers as identified in the Appendix C Table C1 for each
calendar year and the installments shall be delivered during each year in accordance with
the procedure further specified in Sections 3.2 and 3.3. Each installment shall be delivered
according to Section 4.1. All prices are exclusive of VAT. At any time before [***], FS
may, upon written notice to Buyer, replace Appendix C Table C1 with Table C2. The applicable
Appendix C Table C1 or Table C2 is referred to in this Agreement as the Price/Volume Table.
	 
	 	3.2	 	The Price/Volume Table sets out the following annual KWp volumes for the sale and
purchase of Modules: [***]
	 
	 	3.3	 	The Parties shall work together to develop a binding forecast of Module delivery volumes
and average Module power per Module on a rolling [***] for successive [***], based on the
annual total minimum and target KWp volume purchase commitments set forth in the
Price/Volume Table (Appendix C). If the Parties do not otherwise agree, the binding rolling
[***] schedule shall be determined pursuant to the provisions in the Price/Volume Table
(Appendix C).
	 
	 	4.	 	Shipment; Delivery; Late Delivery
	 
	 	4.1	 	The Modules shall be shipped “CIP” (INCOTERMS 2000) to a point of destination specified
by Buyer (hereinafter referred to as “Point Of Destination”). Accordingly FS shall deliver
each shipment of Modules to Buyer to a carrier at one or more FS factories (such delivery
from FS to the carrier is referred to as “Delivered for Carriage”), such deliveries to be
credited to FS’ total delivery obligation pursuant to Sections 3.2 and 3.3. The risk of loss
of, or damage to, the Modules after such Modules have been Delivered for Carriage fall upon
Buyer. On Buyer’s behalf, FS shall arrange and pay for insurance against the Buyer’s risk of
loss of the Modules or damage to the Modules during carriage and provide such proof of
insurance to Buyer upon request.
	 
	 	 	 	Buyer shall notify FS of the Point Of Destination in writing at least [***] ahead of a
scheduled Delivered for Carriage date. The Point Of Destination shall be a point with
either a valid address, in particular a house number, accessible from a public road or a
point that is described with sufficiently detailed driving instructions. Unless the
Buyer provides for a new general or individual Point Of Destination or, as the case may
be, if Buyer does not provide the Point Of Destination in time, then FS shall have the
right to deliver to the following default Point Of Destination:
	 
	 	 	 	Reinecke + Pohl Solare Energien GmbH

c/o NASTRO Umwelttechnik GmbH

Dieselstraße 12

D-49716 Meppen
	 
	 	 	 	If the default Point Of Destination specified by Buyer no longer complies with the
requirements stated above, or if a new default Point of Destination notified by the Buyer
is located outside of Germany (the original or replacement default Point of Destination
is referred to in this Agreement as the “Default Point of Destination”) then FS shall
have the right to deny to deliver for carriage or terminate a commenced shipment to such
location and Buyer shall be obligated to bear any and all costs and compensate any and
all damages suffered by FS; insofar, the Buyer will be in default of acceptance after FS
has notified the Buyer in writing that FS is ready to effect a Delivered for Carriage
handover.

 

			
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	 	 	 	FS shall pay for the transportation and insurance costs incurred in shipping Modules to
the Point of Destination specified by Buyer up to a maximum amount equal to [***]
(“Shipping Costs”). Buyer shall bear any transportation and insurance costs in excess of
the Shipping Costs (“Excess Shipping Costs”). FS may advance Excess Shipping Costs on
behalf of Buyer, in which case FS will invoice such costs to Buyer and Buyer shall pay FS
according to the payment terms set forth in Section 7.
	 
	 	 	 	Each container or truckload (collectively hereinafter “Shipment”) shall only be loaded
with Modules for one single Point Of Destination and shall be completely unloaded by
Buyer after arrival at the Point Of Destination. The loading of the containers is at the
sole discretion of FS. FS will attempt to ship full containers whenever possible. [***]
before a shipment is Delivered for Carriage, FS shall issue a shipment confirmation that
shall confirm an exact date that the Shipment is to be Delivered for Carriage and the
total number of Modules and Module product types by product number. FS shall include
only one (1) Module product type per individual Shipment. [***] FS shall provide the
Buyer with factory measured module power, voltage and current data (Flash Reports in an
Excel file format) for each delivered Module at the time that a Shipment is Delivered
for Carriage or sooner.
	 
	 	4.2	 	FS shall be liable in case of Modules which are Delivered for Carriage late pursuant to
Section 3, in accordance with statutory rules to the extent

	 	a)	 	the instalment is considered to be a fixed term deal pursuant to Section
376 German Commercial Code or;
	 
	 	b)	 	the Buyer is entitled to claim that the fulfilment of the Agreement is of
no further interest to him due to a delay for which FS is responsible or;
	 
	 	c)	 	the delivery delay is due to FS’ wilful or grossly negligent breach of
contract; any negligence of a representative shall be attributed to FS. To the extent
the delivery delay is not due to wilful breach of contract, any indemnity shall be
limited to the predictable and characteristically to be expected damage; or
	 
	 	d)	 	the delivery delay is due to a breach of a material contractual obligation
for which FS is responsible; in this case any indemnity shall be limited to the
predictable and characteristically to be expected damage.

	 	4.3	 	In case of Modules which are Delivered for Carriage late in accordance with Section 3 for
reasons FS is responsible for and the Buyer chooses not to raise any claims against FS for
this delay in accordance with Section 4.2, the Buyer shall have the right to a late delivery
penalty payment from FS. After a grace period of [***], FS shall from [***] of delay incur a
penalty charge for each week that the shipment is late in the amount of

	 	aa)	 	[***] % of the purchase price of the installment which is late,
if the agreed Delivered for Carriage date was in the [***]; or
	 
	 	bb)	 	[***] % of the purchase price of the installment which is late,
if the agreed Delivered for Carriage date was in the [***], and, in cases where
the delay extends from the calendar year in which the delivery was originally
scheduled into the following calendar year, the Module prices shall be adjusted
and the penalty charge shall be calculated on the basis of the prices set out
in the Price/Volume Table (Appendix C) for such following calendar year;

	 	 	 	in any event up to a maximum of [***] based on the original Delivered for Carriage
date for each installment.

 

			
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	 	5.	 	Inspection and Notice of Defect
	 
	 	5.1	 	Within the scope of Buyer’s duty to inspect and object upon arrival of the Modules at the
Point of Destination (the “Arrival”),

	 	a)	 	other than for any additional obligations to inspect and object pursuant
to the agreement with the carrier and under the carriage insurance that FS will
provide to Buyer, the Buyer shall immediately check quantities of the boxes and the
boxes for any visible shipping damages and record in any event any discrepancies and
objections on the packing slip and have the carrier countersign such discrepancies
and objections ; and
	 
	 	b)	 	within [***] conduct a representative visual inspection for
defects of the Modules and quantities of Modules in the boxes from at least [***]%
of the boxes delivered and, to the extent necessary, open the packaging and check
the goods with regard to their exterior condition.
	 
	 	 	 	Any such wrong quantities of Modules in the boxes or damaged Modules, excluding any
damages resulting from the shipping of the Modules (for which FS is not
responsible), shall be considered a “Defect.”

	 	5.2	 	In case of a Defect within the scope of Section 5.1 above, the Buyer shall comply with
the following procedures and deadlines:

	 	a)	 	The notification of any Defects to FS shall be made no later than on the
[***] following the Arrival pursuant to Section 5.1 above (the “Objection Period”).
	 
	 	b)	 	The detailed notice shall be delivered to FS within the Objection Period
in writing or by fax or by email to the addresses and contact details specified on
the bill of lading. A notice over the telephone shall not be sufficient. Notices
to sales representatives, commission agents or agents shall not be valid.
	 
	 	c)	 	The notice must clearly specify the kind and extent of the alleged
Defect.
	 
	 	d)	 	The Buyer agrees to make the allegedly defective goods available for FS’s
inspection at the Point of Destination; such inspection may be conducted by FS, FS’s
suppliers or any expert FS may have designated.

	 	5.3	 	Objections that do not comply with the objection obligations set forth in Sections 5.1
and 5.2 shall be disregarded.
	 
	 	5.4	 	A good to which no objections have been made in accordance with the procedures and
deadlines set out above shall be regarded as approved and accepted.
	 
	 	5.5	 	The provisions of this Section 5 shall (i) apply mutatis mutandis to any hidden defect
within the meaning of Section 377 par. 2, 3 German Commercial Code (ii) not apply in case of
any defect maliciously kept silent by FS.
	 
	 	6.	 	Liability of the Parties
	 
	 	6.1	 	With respect to liability for defects of the Modules that were objected to in accordance
with Section 5, FS shall at FS’ discretion, either repair such defect free of charge or
supply a replacement delivery free of charge and take back the defective Modules delivery.
	 
	 	6.2	 	Buyer’s right to rescind or reduce the purchase price if the replacement delivery or
repair under Section 6.1 fails, shall be limited to the relevant installment and shall not
affect the remainder of

 

			
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	 	 	 	the Agreement, provided that the Buyer may rescind from this Agreement if the Buyer is
entitled to rescind from individual installments in accordance with Section 6.1 (i) if
due to defects of more than [***]% of the value volume (in KWp) of the installments
(including any replacement deliveries) to be delivered in [***] are defective or (ii) if
more than [***]% of the value volume (in KWp) of installments (including any replacement
deliveries) to be delivered in [***] are defective.
	 
	 	6.3	 	If the total volume of Modules delivered in [***] that Buyer has objected to due to a
defect in accordance with Section 5, exceeds [***]% of the minimum KWp volume of Modules
required to be delivered by FS during [***] in accordance with Section 3, Buyer may upon
written notice to FS, (1) request that FS provide reasonable assurances that the defects
previously experienced by Buyer will not be present in further Module Shipments and (2)
suspend the agreed upon further delivery and deny acceptance of such future Module Shipments
until FS has provided such reasonable assurances. After FS has provided such assurances, FS
may resume shipment of the suspended Module shipments to Buyer and Buyer shall be obligated
to accept and pay for the Modules. If FS fails to provide such assurances described in
clause (1) above, Buyer may, whether or not it has previously suspended delivery under
clause (2) above, at any time [***] after requesting the assurances under clause (1), upon
written notice to FS, terminate the Agreement (a “Defects Termination”). Upon making such
declaration, neither Buyer nor FS shall have any further obligations or liabilities under
this Agreement except with respect to (i) Modules already delivered to Buyer and (ii) FS’
obligation to indemnify the Buyer for its predictable and characteristically to be expected
damage resulting from such termination.
	 
	 	6.4	 	The Buyer shall further have the rights set out in the Module Warranty Terms & Conditions
(Appendix D), regardless of whether objections pursuant to Section 5 above were made in
time; the scope of these rights shall be exclusively governed by the Module Warranty Terms &
Conditions (Appendix D).
	 
	 	6.5	 	The Buyer shall not be entitled to any further rights or remedies due to defects. In
particular, FS shall not be responsible to pay damages based on breach of the Agreement or
default except in cases of willful misconduct or gross negligence on behalf of FS or in
cases where FS has granted an express guarantee within the meaning of Sections 443, 444
German Civil Code. To the extent FS is not liable due to willful misconduct, the liability
for damages pursuant to the preceding sentence is limited to the amount of predictable and
characteristically to be expected damage.
	 
	 	6.6	 	The statute of limitation for claims pursuant to Section 6.1-6.3 shall be [***] from the
date of the Arrival; the statutory statute of limitation in cases of a recourse against the
supplier in accordance with Sections 478, 479 German Civil Code, remains unaffected; it
shall be five years from the date of Arrival of the defective goods. Section 6.4 remains
unaffected.
	 
	 	6.7	 	Apart from liability for defects, FS shall be liable in accordance with statutory law for
any breach of fundamental contractual obligations FS is responsible for; insofar, FS’
liability shall be limited to the predictable and characteristically to be expected damage.
	 
	 	6.8	 	Notwithstanding this Section 6, FS’ shall be liable for any negligent personal injury;
the same shall apply to FS’ mandatory liability under the German Act on Product Liability
(Produkthaftungsgesetz).
	 
	 	6.9	 	Unless otherwise agreed in this Agreement, FS’ liability shall be excluded, irrespective
of the legal nature of such claim, e.g. culpa in contrahendo, other breach of contract or
claims based on tort for compensation of property damage.
	 
	 	6.10	 	Any limitation of liability for damages of FS shall also apply to any personal liability
for damages of employees, workers, representatives and the like of FS.

 

			
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	 	6.11	 	The Buyer’s liability for breach of fundamental obligations under this Agreement for
reasons the Buyer is responsible for shall be limited to the predictable and
characteristically to be expected damages; this limitation is not applicable in cases of
gross negligence and wilful misconduct of the Buyer. Section 6.8 is applicable mutatis
mutandis.
	 
	 	7.	 	Payment
	 
	 	7.1	 	FS may invoice Buyer for each Shipment at any time on or after Delivery for Carriage.
Buyer shall pay the total purchase price for each Shipment within [***] after the date of
the invoice issued by FS as demonstrated by fax or email confirmation on request (other than
for the year 2006 which shall be within [***] after the date of the invoice issued by FS).
Buyer shall pay for the goods by way of wire transfer free of expenses into the bank account
specified on the invoice. The purchase price shall be payable net cash in one sum and free
of any deduction unless other payment terms were mutually agreed on in writing.
	 
	 	7.2	 	In the event of a payment default pursuant to Section 7.1, (i) a late charge of [***]%
per month shall be charged on all delinquent amounts, and (ii) FS may apply any or all
payments subsequently received from Buyer on a priority basis to pay the accrued late
charges and then the delinquent payment, notwithstanding any other application of such
payments that Buyer may designate or request, and, (iii) FS may, upon written notice to
Buyer, suspend further delivery of Modules under the Agreement until all late charges and
delinquent amounts have been paid in full. Upon relief of such suspension, FS may deliver
and Buyer shall be obligated to accept and pay for, any suspended Shipment as and when FS
resumes delivery.
	 
	 	 	 	If (a) late charges or delinquent payments remain outstanding for a period of more than
[***] or (b) invoiced amounts are not paid by Buyer (i) when due on more than [***]
consecutive occasions or (ii) within [***] after the due date on more than [***]
occasions over a consecutive [***], FS may, in any such event (each a “Payment Breach”),
terminate the Agreement for cause without notice period. Upon such termination, FS shall
have no further obligation to sell and deliver Modules to Buyer and FS shall be entitled
to any legally recoverable damages in addition to the default interest and delinquent
payments that gave rise to the termination. FS will provide written notice of any
incidence of delinquent payment to Buyers designated representative; FS’ claims and
rights due to payment default are not dependent on this notification, except for the
termination of this agreement which FS may only declare after having sent a notification
by registered mail.
	 
	 	7.3	 	Unless otherwise specifically provided for herein, neither Party shall have the right to
set off, withhold or reduce any amounts unless the underlying counterclaims have become
final or are expressly acknowledged by the other Party.
	 
	 	8.	 	Confidentiality
	 
	 	8.1	 	In addition to any other confidentiality agreements between the Parties, the Parties
undertake to keep secret any and all information and documents provided by the other Party
or of which they have otherwise obtained knowledge in connection with this Agreement from
the other Party, save for any information or documents that are in the public domain.
	 
	 	8.2	 	FS shall use the Buyer’s personal data only in accordance with German Data Privacy Laws.
	 
	 	8.3	 	Publications in which any content of the Agreement is mentioned require the prior written
approval of the other Party in each individual case. In cases where a Party desires to
disclose only the mere fact that the Agreement has been entered into without giving any
further details, in particular no details on the content of the Agreement, no approval shall
be required.
	 
	 	8.4	 	The above confidentiality undertaking shall not apply to the extent each Party is obliged
by law,

 

			
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	 	 	 	rule or regulation and an official or court order or ruling to disclose such confidential
information or documents.
	 
	 	9.	 	Quality Management and Environmental Protection
	 
	 	9.1	 	The Buyer shall, in case of a resale, and/or the integration of Modules in a system in
accordance with this Agreement, propose to the final customers (including operators and/or
owners of the property where the PV-system is located, collectively hereinafter a “Final
Customer”) that FS retains the general right to monitor by remote access the installed
PV-system (comprising the total goods delivered by FS, in particular the Modules as well as
the entire installation) with respect to the energy performance for the entire life cycle of
the individual PV-system for the purpose of the long-term collection of performance data for
a continuous product quality management (hereinafter referred to as “Remote Data
Monitoring”). Insofar, Buyer shall also propose that FS shall have at all times the
unlimited right to access the PV-system or parts thereof for installation, maintenance,
repair and the operation of the Remote Data Monitoring vis-à-vis the Final Customers.
	 
	 	9.2	 	If the Final Customers agree to the Remote Data Monitoring, FS will share upon request
the system data retrieved with the Buyer, and, provided such Buyers consent hereto, with the
Final Customer. Any publications specifying the system data and location shall require the
approval of the Buyer and Final Customer which shall not be unreasonably withheld.
	 
	 	9.3	 	FS shall also have the right to Remote Data Monitoring in accordance with this Section 9
of Modules installed by and for the Buyer at its equitable discretion. Any publications
specifying the system data or its location shall require the Buyer’s approval which shall
not be unreasonably withheld.
	 
	 	9.4	 	FS shall bear the cost for the technical installation and the operation of the Remote
Data Monitoring.
	 
	 	9.5	 	For purposes of environmental protection, the Parties hereby enter into the Module
Reclamation and Recycling Agreement (Appendix E). Buyer shall promptly give written notice
to FS of a sale or transfer of Modules to a third party in order to allow FS and such third
party for the assumption of contract of the Module Reclamation and Recycling Agreement
(Appendix E) within [***] after transferring ownership of the Modules to the third party
(e.g. installation and commissioning of the system is complete and accepted by Final
Customer).
	 
	 	9.6	 	The Buyer shall oblige any of its customers and transferees, who are not Final Customers,
to assume the obligations set forth in this Section 9 by way of a right that directly inures
to the benefit of FS and in a manner that such customers are themselves, or in the case of a
further resale or transfer, their customers or transferees, are directly bound like the
Buyer by the provisions of this Section 9 and that they are further obligated to observe the
provisions of this Section 9.6 with respect to any of their own transferees.
	 
	 	9.7	 	The execution and delivery by any customer or transferee (i) of the Module Reclamation
and Recycling Agreement (Appendix E), and (ii) the assumption of the obligations in
accordance with Section 9.6 is required in order for the power warranty under the Module
Warranty Terms and Conditions (Appendix D) to stay effective.
	 
	 	10.	 	Meeting between the Parties
	 
	 	10.1	 	Representatives of FS and Buyer will meet [***] at a mutually agreed upon location to
advise each other of the performance and future plans relating to their respective
businesses, to assure each Party of the other’s ability to continue to perform the agreement
and to explore additional ways to work together for mutual benefit and to discuss the
rolling forecast in

 

			
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	 	 	 	accordance with Section 3.3. Each Party will maintain a primary contact person for these
purposes.
	 
	 	10.2	 	In addition to the [***] meetings described in Section 10.1, FS and Buyer shall conduct
an [***] summary meeting in order to review performance of each Party hereunder.
	 
	 	10.3	 	Neither Party will be required to disclose proprietary business information to the other
Party in connection with meetings under this Section 10.
	 
	 	11.	 	Resale
	 
	 	11.1	 	The Buyer acknowledges that the Modules may be subject to a variety of regulations in
various jurisdictions, in particular in the countries (the “Approved Countries”) listed on
the appendix Approved Countries and Applications (Appendix G) attached hereto.
	 
	 	11.2	 	The Buyer further acknowledges that the Modules have been developed, tested and approved
only for the use in specific applications (the “Approved Applications”) listed on the
appendix Approved Countries and Applications (Appendix G) and that, to avoid any damage by
inconsistent use, the Modules shall not be used for other applications.
	 
	 	11.3	 	To the extent the Buyer uses, installs, resells or transfers the Modules in areas that
are not Approved Countries, the Buyer shall indemnify FS for any losses and damages incurred
out of or in connection with such use, installation, resale or transfer of the Modules. In
accordance with Section 10.1, FS and Buyer will discuss opportunities to include additional
Approved Countries and Approved Applications to the Approved Countries and Applications
(Appendix G) by considering the regulations applicable to Module sales, use, and
decommissioning, the plan for meeting the support needs of final customers, and the plan for
meeting the obligations set forth in Sections 9.5 and 9.6 for such new countries and
applications. FS will not unreasonably withhold its approval to add new countries and
applications to Appendix G.
	 
	 	11.4	 	In case of a use, installation, resale or transfer pursuant to Section 11.3 or a non
Approved Application, Buyer shall promptly give notice to FS of the location to which the
Modules are brought to outside the Approved Countries or the applications other than the
Approved applications for which the Modules are used, as applicable, and of any transferee
of the Modules.
	 
	 	11.5	 	In addition to the obligations set forth in Sections 9.5 and 9.6, Buyer may resell or
transfer Modules only to customers or transferees that agree to be bound by, and adhere to,
(i) the FS System Design and Application Document (Appendix B), and (ii) the Module Warranty
Terms and Conditions (Appendix D). Sections 9.6 and 9.7 shall apply mutatis mutandis for
transferees that are not end customers.
	 
	 	11.6	 	Any use, installation, resale or transfer by Buyer of Modules not in accordance with the
requirements of Section 9.5, 9.6 and this Section 11 shall entitle FS to terminate the
Agreement (a “Transfer Breach”) after a cure period of [***] which FS shall set to the Buyer
in writing has expired unsuccessfully.
	 
	 	12.	 	Letter of Credit
	 
	 	12.1	 	Buyer shall deliver to FS an irrevocable payment guarantee in favor of FS in the amount
set forth in the Price/Volume Table (“Letter of Credit”) that shall secure the payment
obligations of Buyer out of or in connection with this Agreement.
	 
	 	12.2	 	The Letter of Credit shall be issued as of [***] by IKB Deutsche Industriebank AG or
another mutually acceptable bank, containing terms and conditions of the attached
Performance

 

			
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	 	 	 	Guarantee (Appendix I) (to the extent requested by the guarantor in the form of a
guarantee on first demand) or substantially the same terms commercially reasonably
acceptable to FS, and Buyer shall renew such Letter of Credit on an annual basis, such
renewal to be effective on every subsequent [***], in the amounts for the time periods
set forth in the Price/Volume Table.
	 
	 	12.3	 	If the Buyer has not delivered a renewal Letter of Credit in accordance with Section 12.2
by the [***] of any year for the following period commencing on the [***], FS shall be
entitled to draw down the full amount of the Letter of Credit then in place. FS shall
deposit the proceeds drawn in accordance with the preceding sentence in an escrow account
until the Buyer has properly delivered a renewal Letter of Credit within a cure period of
[***] or, if such cure period has expired fruitless and FS serves the Buyer with notice
of termination of this Agreement, until all claims of FS against the Buyer have been
settled.
	 
	 	12.4	 	After termination of this Agreement, FS shall return the original of the Letter of Credit
to Buyer no later than [***] after such termination. To the extent that not all claims of FS
against Buyer have been settled by that date, FS shall be entitled to draw the Letter of
Credit then in place in an amount sufficient to cover the remainder of the Buyer’s
obligations; provided that the Buyer has not posted another security sufficient and
reasonably acceptable to FS in lieu thereof, FS shall deposit the proceeds drawn in
accordance with the preceding sentence in an escrow account until final resolution of the
claim against the Buyer.
	 
	 	13.	 	Term and Termination
	 
	 	13.1	 	This Agreement shall be effective until the time period specified in the Price/Volume
Table. The right to terminate this Agreement for cause shall remain unaffected.
	 
	 	13.2	 	If a “Material Adverse Change” (as defined below) occurs, FS may, in its equitable
discretion, terminate the Agreement, with [***] prior notice of termination to the end of a
quarter. On the effective date of such termination, FS shall pay Buyer a liquidated damages
fee of € [***] under Appendix C Table C1 and € [***] under Appendix C
Table C2, as applicable. Upon payment of such fee, FS shall have no further obligations to
Buyer out of or in connection with such termination. A “Material Adverse Change” shall have
occurred if FS determines, in its equitable discretion, that any of the following conditions
exist: [***]
	 
	 	 	 	In the event that FS realizes that the situation of FS, considering FS’ obligations under
this Agreement, has significantly deteriorated in a manner that might result in a
Material Adverse Change, it is the intent of FS and Buyer to enter into good faith
discussions to modify the Agreement in order to prevent the occurrence of a Material
Adverse Change and to preserve, as closely as practicable under the circumstances, the
intended economic benefits for both Parties under the Agreement.
	 
	 	14.	 	Miscellaneous
	 
	 	14.1	 	All notices or other communications (including sending of invoices to Buyer) which are
required or permitted hereunder shall be in writing and sufficient if delivered personally
or sent by mail, postage prepaid, facsimile transmission or email transmission addressed as
follows:
	 
	 	 	 	If to FS, then to
	 
	 	 	 	First Solar GmbH,

Rheinstraße 4N,

D-55116 Mainz,

Stephan Hansen

(shansen@firstsolar.com),

Fax 06131 1443 500

 

			
	***	 	CONFIDENTIAL TREATMENT REQUESTED. CONFIDENTIAL PORTIONS HAVE BEEN REDACTED AND
FILED SEPARATELY WITH THE COMMISSION.

 

 

	 	 	 	If to Buyer, then to
	 
	 	 	 	Reinecke + Pohl Sun Energy AG,

ABC-Strasse 19,

D-20354 Hamburg,

Martin Schultz-Colmant

(schulz-colmant@rupag.de),

Fax 040 696 528 858
	 
	 	 	 	All such notices or other communications shall be deemed to have been delivered (i) upon
receipt when delivery is made by hand, (ii) on the third business day after deposit in
the mail, and (iii) upon complete transmission when made by email or facsimile
transmission (if evidenced by a sender transmission completed confirmation). Any email
communication shall be deemed to have been validly and effectively given on the date of
such communication, if such date is a business day in Germany and such delivery was made
prior to 16:00 Frankfurt, Germany time, otherwise it will be deemed to have been
delivered on the next business day.
	 
	 	14.2	 	The Buyer may transfer its rights under the Module Warranty (Appendix D) and the Module
Reclamation and Recycling Agreement (Appendix E) with execution and delivery of the
Assignment of Module Warranty and Reclamation Agreement (Appendix F) to its transferee.
Sections 9.6 and 11.6 shall remain unaffected.
	 
	 	14.3	 	The Agreement contains the entire agreement between the Parties and cancels and
invalidates, safe for any explicit agreement to the opposite in this Agreement, all prior
commitments or representations which may have been made by the Parties either orally or in
writing. The Parties agree that there are no representations, warranties, conditions,
guarantees or understandings other than those expressly set forth in the Agreement.
	 
	 	14.4	 	The Appendices to the Agreement, including but not limited to, the Arbitration Agreement
(Appendix H) shall constitute integral parts of the Agreement.
	 
	 	14.5	 	The Agreement, including this section, may be amended, modified or supplemented only by a
written instrument authorized and executed on behalf of the Parties.
	 
	 	14.6	 	The Agreement shall be governed by and construed in accordance with the laws of the
Federal Republic of Germany. The Convention on the International Sale of Goods (CISG) shall
not apply.
	 
	 	14.7	 	The unenforceability of any provision of the Agreement shall not affect the
enforceability of any other provisions hereof. Unenforceable provisions shall be deemed to
be replaced by such enforceable provisions that are suitable to implement the economic
purpose of the deleted provision to the greatest extent possible. The same shall apply
mutatis mutandis in case of any gaps in the Agreement.
	 
	 	14.8	 	The Agreement has been drawn up in both, the English and the German languages, except for
certain parts of the Appendices. The English translation shall be for convenience purposes
only. For the avoidance of doubt, in the event of a dispute, the German version shall
prevail, except for those certain parts of the Appendices that are in English only.

 

			
	***	 	CONFIDENTIAL TREATMENT REQUESTED. CONFIDENTIAL PORTIONS HAVE BEEN REDACTED AND
FILED SEPARATELY WITH THE COMMISSION.

 

 

	 	14.9	 	This Agreement shall be binding upon and inure to the benefit of the Parties and their
assigns. [***]

Mainz, den 7.4.2006

	 	 	 	 	 	 	 
	First Solar GmbH

	 	 	 	Reinecke + Pohl Sun Energy AG	 	 
	 
	 	 	 	 	 	 
	/s/ Stephan Hansen

	 	 	 	/s/ Patrik Arendt /s/ Martin Schulz-Colmant	 	 
	 

	 	 	 	 	 	 
	     Stephan Hansen

	 	 	 	     Patrik Arendt,           Martin Schulz-Colmant	 	 

 

			
	***	 	CONFIDENTIAL TREATMENT REQUESTED. CONFIDENTIAL PORTIONS HAVE BEEN REDACTED AND
FILED SEPARATELY WITH THE COMMISSION.

 

 

List of Appendices

	 	 	 
	Appendix	 	Document Name
	 
	 	 
	Appendix A (PD-5-101-02)
	 	Module Product Specification
	 
	 	 
	Appendix B (PD-2-303 B)
	 	System Design and Application Document
	 
	 	 
	Appendix C (MD-2-320 PVT)
	 	Price/Volume Table
	 
	 	 
	Appendix D (PD-5-102)
	 	Module Warranty Terms & Conditions
	 
	 	 
	Appendix E (PD-5-103)
	 	Module Reclamation and Recycling Agreement
	 
	 	 
	Appendix F (PD-5-104)
	 	Assignment of Module Warranty and Reclamation Agreement
	 
	 	 
	Appendix G (MD-2-320 ACA)
	 	Approved Countries and Applications
	 
	 	 
	Appendix H
	 	Arbitration Agreement
	 
	 	 
	Appendix I
	 	Performance Guarantee

 

			
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Appendix A

Page 1

Series 2 Module Product Specification

	1.	 	General Product Description
	 
	 	 	The Product specified in this document is a First Solar FS Series 2 Laminate PV module
intended for use in large solar arrays. The product will be binned according to Pmpp at
STC1 as measured at the First Solar Manufacturing Facility.

	 	a.	 	The Product model number and nominal power rating shall be:

	 	•	 	FS-255 – Nominal 55W PV module
	 
	 	•	 	FS-257 – Nominal 57.5W PV module
	 
	 	•	 	FS-260 – Nominal 60W PV module
	 
	 	•	 	FS-262 – Nominal 62.5W PV module
	 
	 	•	 	FS-265 – Nominal 65W PV module

	 	b.	 	The tolerance of actual Pmpp is +/-5% under Standard Test
Conditions1

	2.	 	Certifications
	 
	 	 	FS Series 2 PV modules are certified according to the following:

	 	a.	 	TUV Safety Class II. FS Series 2 modules are currently certified for a
maximum system voltage of 1000V by TUV Rheinland. First Solar permits FS Series 2
modules to be used in system designs with a maximum system voltage of 1000V.
	 
	 	b.	 	CE Mark with Declaration of Conformity.
	 
	 	c.	 	IEC 61646. FS Series 2 modules are tested and certified to the IEC61646
Standard with a maximum system voltage of 1000VDC.

	3.	 	Physical Specifications
	 
	 	 	Dimensions are provided below for reference only. Refer to product drawing PRD-016-D for
exact dimensions and tolerances.

	 	 	 	 	 	 	 
	 

	 	a.
	 	Length
	 	1200mm
	 

	 	b.
	 	Width
	 	600mm
	 

	 	c.
	 	Thickness
	 	6.8mm
	 

	 	d.
	 	Weight
	 	11.4kg
	 

	 	e.
	 	Area
	 	0.72m2
	 

	 	f.
	 	Leadwire
	 	3.2mm2, 60cm in length
	 

	 	g.
	 	Connectors
	 	MultiContact Solar I Connector
	 

	 	 	 	 	 	Male M/C part# PV-KST3II
	 

	 	 	 	 	 	Female M/C part# PV-KBT3II
	 

	 	h.
	 	Cordplate
	 	according to IP54 requirement of TUV SKII certification
	 

	 	i.
	 	Bypass Diode
	 	None
	 

	 	j.
	 	Serial Number:
	 	engraved in glass on front of module

 

			
	1	 	Standard Test Conditions (STC) 1000W/m2, AM 1.5, 25oC
	 
	***	 	CONFIDENTIAL TREATMENT REQUESTED. CONFIDENTIAL PORTIONS HAVE BEEN REDACTED AND
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Appendix A

Page 2

Series 2 Module Product Specification

4. Electrical Specifications

     Table 1

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Model Numbers and Ratings*	 	 	 	 
	Nominal Values	 	 	 	FS-255	 	FS-257	 	FS-260	 	FS-262	 	FS-265
	Nominal Power (+/-5%)
	 	Pmpp (W)	 	55	 	57.5	 	60	 	62.5	 	65
	Voltage at Pmax
	 	Vmpp (V)	 	61	 	62	 	63	 	64	 	65
	Current at Pmax
	 	Impp (A)	 	0.90	 	0.93	 	0.96	 	0.98	 	1.00
	Open Circuit Voltage
	 	Voc (V)	 	88	 	89	 	90	 	91	 	91
	Short Circuit Current
	 	Isc (A)	 	1.13	 	1.13	 	1.14	 	1.14	 	1.15
	Maximum System Voltage
	 	Vsys (V)	 	 	 	 	 	1000	 	 	 	 
	Temperature Coefficient of Pmpp
	 	Tk(Pmpp)	 	 	 	 	 	-0.25%/°C	 	 	 	 
	Temperature Coefficient of Voc
	 	Tk(Voc)	 	 	 	 	 	-0.29%/°C	 	 	 	 
	Temperature Coefficient of Isc
	 	Tk(Isc)	 	 	 	 	 	+0.04%/°C	 	 	 	 
	Maximum Source Circuit Fuse
	 	Icf  (A)	 	 	 	 	 	10	 	 	 	 

 

			
	*	 	All ratings at Standard Test Condition (1000W/m2, AM 1.5, 25oC Cell
Temperature) +/-10%

5. Quality Standards

Modules are manufactured in a highly automated production environment. While all efforts
are made to produce modules that are visually uniform, some visual differences do exist between
modules. Only visual differences that are deemed to affect the long term performance or
durability of the module will be deemed intolerable.

	 	 	 
	Code	 	Description of Intolerable Effects
	A

	 	Any glass fracture, crack, or break on a module is unacceptable.
	B

	 	Glass scratches greater than 5cm in length that are detectable with a straight edge.
	C

	 	Edge chips in the glass greater than 2mm.
	D

	 	Foreign material inside the laminate.
	E

	 	Delamination of the laminate.
	F

	 	Damaged cordplate (junction box)
	G

	 	Damaged lead wires or connectors.
	H

	 	No serial number on front of the module.

 

			
	***	 	CONFIDENTIAL TREATMENT REQUESTED. CONFIDENTIAL PORTIONS HAVE BEEN REDACTED AND
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Appendix A

Page 3

Series 2 Module Product Specification

6. System Design Parameters

In addition to the system design requirements specified in the FS Series User’s Guide, all
system designs using the FS Series 2 modules will meet the following requirements:

	 	a.	 	Mechanical

	 	i.	 	Laminate shall be attached using mounting clips that meet
the requirements of the FS Series 2 User’s Guide.
	 
	 	ii.	 	Mounting system shall use EPDM rubber or equivalent to
isolate the module from the mounting structure.

	 	b.	 	Electrical

	 	i.	 	Maximum number of modules connected in series: 10
	 
	 	ii.	 	Maximum number of parallel strings on one source circuit fuse: 5
	 
	 	iii.	 	Maximum source circuit fuse rating: 10Amps
	 
	 	iv.	 	Lighting protection may be installed on source circuits.

7. Documentation

	 	a.	 	Technical data sheet will be provided in English and German languages.
	 
	 	b.	 	The First Solar FS Series 2 User Guide will be provided in both English
and German languages.
	 
	 	c.	 	Declaration of Conformity to CE will be provided.
	 
	 	d.	 	All documentation will be delivered electronically.

 

			
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FILED SEPARATELY WITH THE COMMISSION.

 

 

Appendix A

Page 4

Series 2 Module Product Specification

8. Labeling

Each module will be delivered with a nameplate label adhered to the back of module. See
product drawing PRD-016-D for label location. The label will be printed in English and conform to
the requirements of the EN50380 DIN Standard.

 

			
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Appendix A

Page 5

Series 2 Module Product Specification

9. Packaging

	 	a.	 	Modules will be packaged in First Solar’s 30 pack or 50 pack module boxes.
	 
	 	b.	 	All modules within a box will be a single Model Number.
	 
	 	c.	 	Standard sea container volume is

	 	i.	 	50 pack: 30 boxes or 1500 modules
	 
	 	ii.	 	30 pack: 48 boxes or 1440 modules

	 	d.	 	General Box Specifications (Refer to drawing PRD-137-A for actual
dimensions):

	 	 	 	 	 	 	 
	 	 	 	 	50 Pack	 	30 Pack
	•	 	Length:	 	1400mm	 	1350mm
	•	 	Width:	 	1150mm	 	780mm
	•	 	Height:	 	840mm	 	840mm
	•	 	Weight:	 	650kg	 	392kg

 

			
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FILED SEPARATELY WITH THE COMMISSION.

 

 

Appendix B

Page 1

System Design and Application Template

	 	 	 
	Customer Name:

	 	[***]
	System Design/Installation:

	 	[***]
	System Type:

	 	[***]
	Project Location:

	 	[***]
	Size:

	 	[***]
	 
	 	 
	Mounting Structure
	 	 
	 
	Type:

	 	[***]
	Tilt Angle

	 	[***]
	Azimuth

	 	[***]
	Support Rails

	 	[***]
	Module Orientation

	 	[***]
	Module Attachment

	 	[***]

 

			
	***	 	CONFIDENTIAL TREATMENT REQUESTED. CONFIDENTIAL PORTIONS HAVE BEEN REDACTED AND
FILED SEPARATELY WITH THE COMMISSION.

 

 

Appendix B

Page 2

System Design and Application Template

	 	 	 
	Electrical System Design (for each inverter type used)

	 
	Inverter:

	 	[***]
	Max Voltage (DC)

	 	[***]
	Transformer

	 	[***]
	Series connections:

	 	[***]
	Parallel Strings:

	 	[***]
	 
	 	 
	Using Central Inverter
	 	 
	 
	Current of Fuse:

	 	[***]
	Strings per Fuse:

	 	[***]
	Number of inverters

	 	[***]

 

			
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Appendix B

Page 3

System Design and Application Template

	 	 	 	 	 
	Module Durability
	 	 	 	 
	 
	[***]
	 	 	 	 
	 
	 	 	 	 
	Operating Conditions
	 	 	 	 
	 
	[***]
	 	 	 	 
	 
	 	 	 	 
	Customer Signature:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	First Solar Signature:
	 	 	 	 
	 

	 	 	 	 

Customer approval is required, and is used as a confirmation that the information included in
this document is correct, and that the modules will be installed in a manner consistent with those
specified in this document.

 

			
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FILED SEPARATELY WITH THE COMMISSION.

 

 

Appendix C

Page 1

Price/Volume Table

[***]

 

			
	***	 	CONFIDENTIAL TREATMENT REQUESTED. CONFIDENTIAL PORTIONS HAVE BEEN REDACTED AND
FILED SEPARATELY WITH THE COMMISSION.

 

 

Appendix D

Module Reclamation and Recycling Agreement

Five-Year Limited Warranty

First Solar, LLC (“First Solar”) warrants to the original purchaser that the FS-Series
Modules (the “Product”) will be free from defects in materials and workmanship under normal use and
service conditions as described in the First Solar FS Series Module User Guide and System Design
and Application document, for five years following delivery of the Product to the original
purchaser. If the Product is in breach of the foregoing warranty, First Solar will, at its option,
either repair or replace the Product under the terms of its Return Policy.

25 Year Power Output Warranty

Subject to and effective upon execution of the First Solar Reclamation and Recycling
Agreement, First Solar additionally warrants to the original purchaser that modules installed in
accordance with the System Design and Application document specified in the purchase agreement
shall (i) during the first ten years following installation of the Product, produce at least 90% of
the nominal power output rating (Pmpp +/-5%), and (ii) during twenty-five years following
installation of the Product, produce at least 80% of the nominal power output rating (Pmpp +/-5%).
Power output shall be measured and normalized to Standard Test Conditions using a method and
laboratory approved by First Solar. If the Product is determined to be in breach of the foregoing
warranty, First Solar will, at its option, either repair or replace the product under the terms of
its Return Policy or provide supplemental Product to remedy the breach of warranty.

Limitation of Remedies

THE REMEDIES SET FORTH ABOVE ARE THE EXCLUSIVE REMEDIES FOR ANY BREACH OF WARRANTY BY FIRST
SOLAR. The sole purpose of these exclusive remedies shall be to provide for the repair,
replacement, or supplementation of products in breach of warranty. This exclusive remedy shall not
be deemed to have failed its essential purpose so long as First Solar is willing and able to
replace or repair the breaching products, or to supplement with additional Product as described
under “Twenty-Five Year Power Output Warranty” above.

Transfer of Warranty

This warranty will transfer from the original purchaser to any subsequent purchaser of the
Product, subject to and effective upon execution of the First Solar Assignment Agreement or a
comparable agreement specified by First Solar.

Proper Operating Conditions

The warranties provided hereunder shall be void and of no effect if the Product is not
properly installed, integrated or maintained, or operated under normal operating conditions as
specified in the First Solar FS Series Module User Guide and System Design and Application document
specified in the purchase agreement. First Solar is not responsible for damage to the Product due
to improper handling, physical abuse or installation that is not consistent with the System Design
and Application (SDA) document.

Return Policy

IF a product must be returned to First Solar in the event of a warranty claim, First Solar
will arrange for the return of the Product at First Solar’s expense so long as such Product is
returned in accordance with the Return Material Authorization (RMA) issued by First Solar. The
packaging, shipping method, and return destination of the Product will be specified in an RMA
issued by First Solar.

Warranty Limitations

EXCEPT AS EXPRESSLY SET FORTH ABOVE, FIRST SOLAR MAKES NO REPRESENTATION OR WARRANTY OF ANY
KIND WHATSOEVER, WHETHER EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO ANY WARRANTY OF
MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE OR NONINFRINGEMENT. UNDER NO CIRCUMSTANCES WILL
FIRST SOLAR BE LIABLE FOR ANY SPECIAL, PUNITIVE, INCIDENTAL OR CONSEQUENTIAL DAMAGES, INCLUDING
BUT NOT LIMITED TO LOSS OF PROFITS, ARISING, DIRECTLY OR INDIRECTLY, FROM THE SALE OR USE OF ANY
PRODUCTS, WHETHER SUCH CLAIM IS BASED ON WARRANTY, CONTRACT, NEGLIGENCE, STRICT LIABILITY OR
OTHERWISE. UNDER NO CIRCUMSTANCES SHALL THE LIABILITY OF FIRST SOLAR FOR NONCONFORMING PRODUCTS
EXCEED THE AMOUNT PAID BY THE ORIGINAL PURCHASER TO FIRST SOLAR FOR THE PARTICULAR PRODUCT
INVOLVED, PLUS REASONABLE SHIPPING EXPENSES INCURRED BY SUCH PURCHASER.

NOTWITHSTANDING THE ABOVE LIMITATIONS OF REMEDIES AND THE WARRANTY LIMITATIONS, THE REGULATIONS OF
THE GERMAN PRODUCT LIABILITY ACT (PRODUKTHAFTUNGSGESETZ) REMAIN EFFECTIVE.

 

			
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Appendix E

Page 1

Module Reclamation and Recycling Agreement

This agreement is effective as of the date the contract is signed by both parties. This
agreement applies to the First Solar modules described on Exhibit A (the “Modules”). In order to
assure that the Modules are returned to First Solar for recycling after they are taken out of
service, First Solar, LLC and First Solar GmbH (collectively referred to as “First Solar”) and the
undersigned Owner of the Modules (the “Owner”) agree as follows:

	1.	 	First Solar Reclamation Program
	 
	 	 	First Solar will, at any time at the request of the Owner, remove the Modules from the
site listed on Exhibit A (the “Registered Site”) and transport them to a solar module
processing center selected by First Solar. At the solar module processing center, the Modules
will be processed for recycling into new solar modules or other products. Substantially all of
the module components, including the glass and the encapsulated semiconductor materials and
metals, will be processed for recycling. Processed materials will be sequestered and stored
until they are recycled into new products, assuring that these materials do not re-enter the
waste stream, through landfill deposits or otherwise. First Solar may work with one or more
vendors or subcontractors in performing the activities described above. The operations of
First Solar and its vendors, subcontractors and agents under this Agreement will be subject to
and comply with applicable laws, rules and regulations, including those related to waste and
the protection of the environment. The obligations of First Solar under the Agreement will be
deemed modified as necessary to comply with such laws, rules and regulations.
	 
	2.	 	Customer Requirements
	 
	 	 	The Registered Site, quantity and type of Modules, date of Owner invoice and the Owner
contact information are described on Exhibit A. The Owner can initiate the reclamation and
recycling process by contacting First Solar at its web site or any other address it provides
for these purposes in the future. At that time, First Solar will verify the information
described on Exhibit A and provide the Owner with instructions for disassembling and packaging
the Modules at the Registered Site for shipment back to First Solar. As a condition to
receiving the benefits of the Program, the Owner will be responsible for disassembling and
packaging the Modules in containers designated by First Solar.
	 
	3.	 	Ownership and Responsibility
	 
	 	 	First Solar will endeavor to remove the Modules from the Registered Site promptly after
the Modules have been disassembled and packaged for transportation in accordance with First
Solar’s instructions. To the extent permitted by applicable law, effective upon First Solar’s
removal of the Modules from the Registered Site, (a) ownership of the Modules will transfer to
First Solar, automatically and without the need for any further assignment, bill of sale or
other instrument or action, and (b) Owner will have no further liability or obligation with
regard to the Modules.
	 
	4.	 	Certificate of Compliance
	 
	 	 	First Solar will, at the Owner’s request, provide a written certification assuring that
the Modules have been processed under the Program and that First Solar has fully complied with
the requirements of the Program. First Solar will retain pertinent records evidencing the
processing

 

			
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Appendix E

Page 2

Module Reclamation and Recycling Agreement

	 	 	of Modules under the Program for the period required by applicable law, and in any event at
least 10 years after removing the Modules from the Registered Site.

	5.	 	Program Expenses
	 
	 	 	The Modules are designed to have a useful life of more than 25 years. If the Modules are
returned after they have been in service for at least 20 years, or at any earlier time because
of a warranty claim, First Solar will pay all packaging, transportation and recycling costs of
the Program; the Owner’s only requirement to participate in the Program will be to disassemble
and package the Modules based on First Solar’s instructions and follow any other
administrative procedures specified by First Solar. If the Modules are otherwise returned
before the 20 year service period, First Solar may require the Owner, as a condition to
participating in the Program, to pay a portion of the Program expenses based on the length of
time the Modules were in service. In this case, before processing the request, a First Solar
representative will calculate the Owner’s payment obligation and secure agreement from the
Owner to proceed.
	 
	6.	 	Exclusive Means of Module Disposition
	 
	 	 	If the Modules are taken out of service, Owner agrees to promptly notify First Solar and
to permit First Solar to reclaim and recycle the Modules as described in this Agreement as
long as First Solar agrees to pay the program expenses described in paragraph 5. If Owner
prefers an alternate means of disposing of the Modules, it may do so at its sole expense with
the prior written consent of First Solar. First Solar will not unreasonably withhold such
consent if Owner demonstrates to First Solar’s satisfaction that the Modules will be recycled,
without any component entering the waste stream, through a reclamation and recycling program
that is, in its entirety, at least as protective of the environment as the First Solar
program. If First Solar is, for any reason, unable and unwilling to fulfill its obligations
under this Agreement, Owner may fulfill them through alternative providers and First Solar
shall remain responsible for paying the expenses reasonably incurred by Owner for these
purposes.
	 
	7.	 	Assignments and Transfers
	 
	 	 	Each subsequent Owner shall execute the ASSIGNMENT OF MODULE WARRANTY AND RECLAMATION
AGREEMENT (PD-5-104) specified by First Solar, agreeing to be bound by the provisions of this
Agreement to the same extent as the initial Owner. The benefits and obligations under this
Agreement will, to the extent permitted by applicable law, transfer automatically to any
subsequent Owner upon transfer of the Ownership of the Modules, and will in any event transfer
upon execution and delivery of the assignment agreement. If First Solar transfers
substantially all of its assets, voluntarily or involuntarily, the liabilities and obligations
imposed under the Program shall, to the extent permitted by applicable law, automatically
transfer to the transferee, and upon the transferee’s written assumption of such liabilities,
First Solar shall have no further liability or obligation under the Program.
	 
	8.	 	Modifications
	 
	 	 	First Solar may from time to time modify the reclamation or recycling processes or
procedures from time to time without the approval of the Owner provided that the fundamental
benefits provided by the Agreement shall at all times be preserved and the obligations of the
Owner shall

 

			
	***	 	CONFIDENTIAL TREATMENT REQUESTED. CONFIDENTIAL PORTIONS HAVE BEEN REDACTED AND
FILED SEPARATELY WITH THE COMMISSION.

 

 

Appendix E

Page 3

Module Reclamation and Recycling Agreement

	 	 	not be materially increased. First Solar may from time to time designate one or more
replacement web sites for the First Solar web site, or substitute a different communication
process for processing claims under the Program. The Owner listed in First Solar’s records
will be notified of any such changes by a link on the First Solar web site or other means that
are reasonably designed to provide notice.
	 
	9.	 	General Provisions

	 	9.1	 	The Agreement, including this section, may be amended, modified or supplemented
only by a written instrument authorized and executed on behalf of the parties.
	 
	 	9.2	 	All disputes or differences which arise out of or in connection with the
Agreement or its construction, operation, termination or cancellation shall be settled
by arbitration pursuant to the arbitration rules of the German Institution for
Arbitration (DIS) and the jurisdiction of any other courts shall be excluded.
Proceedings shall be conducted in the German language and in Frankfurt, Federal
Republic of Germany.
	 
	 	9.3	 	This Agreement shall be governed by and construed in accordance with the laws
of the Federal Republic of Germany. The Convention on the International Sale of Goods
(CISG) shall not apply.
	 
	 	9.4	 	The provisions of this Agreement shall be modified to the extent required to
permit the parties to comply at all times with the provisions of the German Federal
Waste Act and other applicable environmental waste laws and regulations. The
unenforceability of any provision of the Agreement shall not affect the enforceability
of any other provisions hereof. Unenforceable provisions shall be deemed to be replaced
by such enforceable provisions that are suitable to implement the economic purpose of
the deleted provision to the greatest extent possible.
	 
	 	9.5	 	The Agreement has been drawn up in the German language. Any English
translations hereof shall be for convenience purposes only. For the avoidance of doubt,
in the event of a dispute, the German version shall prevail.

	 	 	 	 	 	 	 	 	 	 	 
	Place, Date:

	 	 	 	 	 	Place, Date:	 	 	 	 
	 

	 	 

	 	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Signature of Owner or Legal Representative	 	 	 	Signature of First Solar Representative	 	 

 

			
	***	 	CONFIDENTIAL TREATMENT REQUESTED. CONFIDENTIAL PORTIONS HAVE BEEN REDACTED AND FILED SEPARATELY WITH THE COMMISSION.

 

 

Appendix E

Page 4

Module Reclamation and Recycling Agreement

Exhibit A

	 	 	 	 	 	 	 	 	 	 	 
	Address of Registered Site:	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	Project Name:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	Street:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	ZIP / City:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	Country:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	Geographical Coordinates:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	(GPS or UTM preferable)	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Date of Owner Invoice:	 	 	 	 	 	 	 	 
	(received by PD within 14 days after invoice issued to end user/owner )	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	(The end customer invoice date / date of sale)	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Owner’s Contact Information:	 	 	 	 	 	 	 	 
	(if different than registered site...)	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	Name / Contact person:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	Phone / E-Mail:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	Street:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	ZIP / City:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	Country:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Quantity and Type of Modules Installed:	 	 	 	 	 	 	 	 
	 

	 	 	 	Type of Module 
(e.g. CTS-60, FS-55, CP625)
	 	 	 	Quantity	 	 
	 

	 	 	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Project Developer:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Please send this form originally signed to:	 	First Solar GmbH	 	 	 	 	 	 
	 

	 	 	 	Rheinstrasse 4N	 	 	 	 	 	 
	 

	 	 	 	D-55116 Mainz	 	 	 	 	 	 

 

			
	***	 	CONFIDENTIAL TREATMENT REQUESTED. CONFIDENTIAL PORTIONS HAVE BEEN REDACTED AND
FILED SEPARATELY WITH THE COMMISSION.

 

 

Appendix F

Page 1

Assignment of Module Reclamation and Recycling Agreement

Regarding the Transfer of Ownership of First Solar Modules Installed in the Following Solar Array
(the “Array”).

Preliminary Note:

The undersigned New Owner is the new owner of the Array — or a portion of it — including the
First Solar modules installed in the Array. First Solar provided Module Warranty Terms and
Conditions and a Reclamation and Recycling Agreement to the Previous Owner of the solar modules.
The rights under the First Solar Module Warranty Terms and Conditions and the Reclamation and
Recycling Agreement are transferable from the Previous Owner to the subsequent New Owner – provided
both parties execute this agreement (PD-5-104) and send the original signed agreement to First
Solar GmbH.

	 	 	 	 	 	 	 	 	 
	Site – Registration – Number:
	 	 	 	 	 	 	 	 
	(See doc CO-5-101 or CO-5-102)
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Site:
	 	 	 	 	 	 	 	 
	(ZIP code and city or GPS/UTM)
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Quantity & Type of Transferred Modules:
	 	 	 	 	 	 	 	 
	 

	 	 
	 	 	 	 	 	 

Further Explanations Concerning the Contractual Terms:

	 	1.	 	Previous Owner transfers any and all rights under the Module Warranty and Reclamation
Agreement with First Solar to the New Owner.
	 
	 	2.	 	The New Owner hereby accepts the assignment and assumes the provisions of the Module
Warranty and Reclamation Agreement and agrees to abide by its terms to the same extent as
if an original party to the Agreement.
	 
	 	3.	 	In accordance with the terms, the assignment of the First Solar Module Warranty and
Reclamation Agreement shall become effective only if (a) Previous Owner and New Owner have
executed this Agreement and (b) the original signed Agreement has been delivered to First
Solar GmbH. The Assignment is deemed effective upon receipt and confirmation by First
Solar. A confirmation package will be sent to the New Owner.

 

			
	***	 	CONFIDENTIAL TREATMENT REQUESTED. CONFIDENTIAL PORTIONS HAVE BEEN REDACTED AND
FILED SEPARATELY WITH THE COMMISSION.

 

 

Appendix F

Page 2

Assignment of Module Reclamation and Recycling Agreement

Assignment of Agreement from

	 	 	 	 	 
	 

	 	PREVIOUS OWNER
	 	NEW OWNER
	 
	 	 	 	 
	Name / Company:
	 	 	 	 
	 

	 	 
	 	 
	 
	 	 	 	 
	Contact Person:
	 	 	 	 
	 

	 	 
	 	 
	 
	 	 	 	 
	Phone / Email:
	 	 	 	 
	 

	 	 
	 	 
	 
	 	 	 	 
	Street:
	 	 	 	 
	 

	 	 
	 	 
	 
	 	 	 	 
	ZIP / City:
	 	 	 	 
	 

	 	 
	 	 
	 
	 	 	 	 
	Country:
	 	 	 	 
	 

	 	 
	 	 
	 
	 	 	 	 
	Place, Date:
	 	 	 	 
	 

	 	 
	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	 
	 	 
	 

	 	Signature of Previous Owner
	 	Signature of New Owner
	 

	 	or Legal Representative
	 	or Legal Representative

Please fill in this form with the appropriate information and send back the Original after
signed by both parties.

First Solar GmbH, Rheinstrasse 4N, D-55116 Mainz; Germany

 

			
	***	 	CONFIDENTIAL TREATMENT REQUESTED. CONFIDENTIAL PORTIONS HAVE BEEN REDACTED AND
FILED SEPARATELY WITH THE COMMISSION.

 

 

Appendix G

Approved
Countries and Applications

[***]

 

			
	***	 	CONFIDENTIAL TREATMENT REQUESTED. CONFIDENTIAL PORTIONS HAVE BEEN REDACTED AND
FILED SEPARATELY WITH THE COMMISSION.

 

 

Appendix H

Arbitration Agreement

entered into by and between

First Solar GmbH, Rheinstraße 4N, D-55116 Mainz, Germany (hereinafter referred to as “FS”)
represented by the managing director with single signature authority, Mr. Stephan Hansen,

and

Reinecke + Pohl Sun Energy AG, ABC-Strasse 19, 20354 Hamburg (hereinafter referred to as “Buyer”)
represented by the managing directors with joint signing authority, Mr. Patrik Arendt and Mr.
Martin Schulz-Colmant.

FS and Buyer are each a “Party” and collectively the “Parties”.

	1.	 	Recitals
	 
	 	 	As of the date hereof, the Parties have entered into a certain FRAMEWORK AGREEMENT ON THE
SALE AND PURCHASE OF SOLAR MODULES (hereinafter the “Agreement”).
	 
	2.	 	Arbitration
	 
	 	 	All disputes or differences which arise out of or relate to the Agreement or its existence,
validity, construction, operation, termination or cancellation shall be settled by
arbitra-tion pursuant to the arbitration Rules of the German Association for Arbitration
(DIS), which Rules are deemed to be incorporated by reference into this clause and the
juris-diction of any other courts shall be excluded. Proceedings shall be conducted in the
German language (provided that documentary evidence may be submitted in the original English
language) and the venue of proceedings shall be at the corporate seat of FS.
	 
	 	 	The arbitral tribunal also decides upon disputes over its jurisdiction and over the effect
and interpretation of this Arbitration Agreement and any supplementations thereto.
	 
	 	 	This Arbitration Agreement does not abridge the right of the Parties to bring any action in
any court of competent jurisdiction for injunctive or other provisional relief to compel the
other party to comply with its obligations hereunder.
	 
	3.	 	Miscellaneous
	 
	 	 	Section 14 of the Agreement shall apply mutatis mutandis.

Mainz, den 7.4.2006

	 	 	 
	First Solar GmbH

	 	Reinecke + Pohl Sun Energy AG
	 
	 	 
	/s/ Stephan Hansen

	 	/s/ Patrik Arendt     /s/ Martin Schulz-Colmant
	 

	 	 
	    Stephan Hansen

	 	    Patrik Arendt           Martin Schulz-Colmant

 

			
	***	 	CONFIDENTIAL TREATMENT REQUESTED. CONFIDENTIAL PORTIONS HAVE BEEN REDACTED AND
FILED SEPARATELY WITH THE COMMISSION.

 

 

Appendix I

[Letterhead Bank]

[Name and address of beneficiary]

Performance Guarantee No. [        ]

On [date], you have entered into an agreement (hereinafter referred to as “Supply Agreement”) with
[name, address] (hereinafter referred to as “Buyer”) with respect to [subject matter of contract]
for a total amount of Euro [amount]. Pursuant to the terms of the Supply Agreement, Buyer shall
provide a bank guarantee in the amount of [ ]% of the total amount to guarantee his proper
performance under the Supply Agreement. In the event of default or any other breach of the
agreement on the part of Buyer, you shall be entitled to use this guarantee to satisfy your claims
arising out of the Supply Agreement.

This being stated, we, IKB Deutsche Industriebank AG, Wilhelm-Bötzkes-Strasse 1, 40474 Düsseldorf,
hereby provide you with this performance guarantee in the maximum amount of Euro [amount] (amount
in words: [...] Euro) (hereinafter referred to as “Maximum Amount”) as security.

We undertake irrevocably to pay to a bank account specified by you, upon your first demand, any
amount within the limits of the Maximum Amount, without whatsoever objection on our part and
without examining the underlying legal relationship, within 10 (ten) bank business days following
your written demand,

	 	–	 	such demand conforming, by showing grounds and reasons, default or any other breach of
the Supply Agreement on the part of Buyer and, as a consequence, your claim against Buyer,
and
	 
	 	–	 	a written confirmation of your bank that your demand is duly signed by you.

Several partial amounts of the Maximum Amount may be drawn under this guarantee. Each payment
reduces the Maximum Amount by the sum of such payment.

This guarantee shall be valid until this document is returned to us. However, if we have not
received your demand and confirmation mentioned above until [date], this guarantee shall cease to
exist, irrespective of whether this document is returned to us or not.

Any rights under this guarantee shall not be assignable without our prior written consent.

This performance guarantee shall be governed by the laws of the Federal Republic of Germany. Place
of execution and jurisdiction is Düsseldorf.

Düsseldorf, ........

IKB Deutsche Industriebank AG

 

			
	***	 	CONFIDENTIAL TREATMENT REQUESTED. CONFIDENTIAL PORTIONS HAVE BEEN REDACTED AND
FILED SEPARATELY WITH THE COMMISSION.EX-10.9

 

Exhibit 10.9

[ENGLISH TRANSLATION]

	 	 	 	 	 
	 

	 	

Partner of
	 	InvestitionsBank

des Landes

Brandenburg

	 

	 	 	 	

ZukunftsAgentur

Brandenburg

	 	 	 
	 
	Post Office Box 90 02 61 • 14438 Potsdam

	 	Commercial Customers
	 
	 	 
	First Solar Manufacturing GmbH

	 	Christian Suske
	[First Solar Manufacturing, Limited Liability Company]

	 	Telephone: (03 31) 6 60-15 26
	Executive Management

	 	Fax: (03 31) 6 60-19 97
	Rheinstraße 4 N

	 	Email: christian.suske@ilb.de
	55116 Mainz

	 	 
	 

	 	Potsdam, July 26, 2006
	 

Grant decision

Joint commission “Improvement of the Regional Economic Structure”

Support of the commercial economy

Application number: 80124453

Dear Sir or Madam,

Based on your application dated September 8, 2005, we approve an appropriated grant in the amount
of

EUR 21,530,500.00

(in words: twenty one million five hundred thirty thousand five hundred Euros)

for the grant period from July 26, 2006 through December 31, 2009, of which 50 % is from the
domestic budgetary funds of the federal government and 50 % from the budgetary funds of the state
of Brandenburg

on the basis

	– 	 	 of §§ 23 and 44 of the Domestic Budget Act of the state of Brandenburg
(LHO) and the associated administrative regulations (VV LHO),
	 
	– 	 	 of the law regarding the joint commission “Improvement of the Regional
Economic Structure” dated October 6, 1969 (BGBl. [Federal Law Gazette] I, page
1861) most recently modified by the law for the modification of the joint
commission dated June 24, 1991 (BGBl. [Federal Law Gazette] I, 1991, page 1336)
and the directive issued on the basis of it by the state of Brandenburg for the
support of the commercial economy in the context of the joint commission
“Improvement of the Regional Economic Structure” (GA-G) dated March 12, 2004.

Purpose of the grant

The subsidy will serve to finance the project:

Construction of an operational site for the manufacture of solar modules

at the investment location: Konrad-Zuse-Str. 1, 15236 Frankfurt (Oder)

The project is to be carried out from September 8, 2005 through June 30, 2007 (investment period).
No legal claim for subsidy exists beyond this period.

The subsidized operational site is to be used by the recipient of the grant for at least 5 years
after the end of the investment period.

Investment schedule for the project (in Euros)

 

 

	 	 	 	 	 	 	 	 	 	 	 
	Structural investments

	 	 	31,500,000.00	 	 	Real estate acquisition
	 	 	2,000,000.00	 
	Machines/equipment

	 	 	84,224,000.00	 	 	—
	 	—

	Investments subject to grant

	 	 	115,724,000.00	 	 	Investments not subject to grant
	 	 	2,000,000.00	 
	Total investment

	 	 	117,724,000.00	 	 	 	 	 	 	 

This investment schedule is substantiated in the list of investment goods enclosed as Attachment 2.
Investments not subject to grant are, in particular, those that cannot be or are not capitalized,
for example acquisition expenses and ancillary construction expenses, public fees and deductions,
financing costs, legal, tax and commercial consultancy, price surcharges for sales between
affiliated companies, motor vehicles and used assets.

Type of financing

The grant will be issued as a subsidy in the form of share financing in the amount of 18.6050430
percent of the investments subject to grant (see grant amount for the maximum amount). It is
explicitly noted that additional expenses that arise are not subject to grant and therefore cannot
be subsidized.

Disbursement

The grant will be disbursed within the limits of the budgetary funds available for the joint
commission “Improvement of the Regional Economic Structure” as well as the specific cash position
upon request on the basis of invoices already paid, deviating from number 1.4 of the ANBest-P
[General Auxiliary Conditions for Grants for the Promotion of Projects]. The maximum amount that
will be disbursed is that which corresponds to the subsidy rate mentioned above. The disbursed
amount will be rounded to 100’s of Euros. The disbursement of the remainder in the amount of 5 % of
the total grant amount will provided only after submission of an auditable proof of use.

The grant will be disbursed only if the grant decision has become legally definitive. The legal
validity of the grant decision can be brought forward (and the disbursement can therefore be
accelerated) if you use the enclosed declaration to waive the right to file an appeal.

The right remains reserved to adjust the timing of the disbursement of the grant to the payment
options granted by the state of Brandenburg to InvestitionsBank des Landes Brandenburg [Investment
Bank of the State of Brandenburg].

Attachments 1 (financing schedule/special auxiliary conditions) and 2 (list of investment goods),
the ANBest-P [General Auxiliary Conditions for Grants for the Promotion of Projects] and the
NBest-Bau [Auxiliary Conditions for Construction] are integral components of this grant decision.

Appeals instructions

An objection can be filed against this decision within one month after publication.

The objection is to be filed at

InvestitionsBank des Landes Brandenburg

[Investment Bank of the State of Brandenburg]

Steinstraße 104 — 106

14480 Potsdam

in writing or stated orally for the record.

The facts and evidence that serve as justification are to be provided.

Sincerely yours,

InvestitionsBank des Landes Brandenburg

[Investment Bank of the State of Brandenburg]

	 	 	 
	/s/ Dr. Marlon Sebbin

	 	/s/ Elmar Kraas
	 

	 	 

 

 

Attachments

	– 	 	 Attachment 1 — Financing schedule/special auxiliary conditions
	 
	– 	 	 Attachment 2 — List of investment goods
	 
	– 	 	 ANBest-P [General Auxiliary Conditions for Grants for the Promotion of Projects]
	 
	– 	 	 ANBest-Bau [Auxiliary Conditions for Construction]
	 
	– 	 	 Confirmation of receipt and declaration of waiver of appeals
	 
	– 	 	 (Declaration on the acceptance of a maximum amount guarantee)
	 
	– 	 	 (Guarantee from the house bank)
	 
	– 	 	 Order for the release of funds/proof of investment
	 
	– 	 	 Instructions for disbursement
	 
	– 	 	 Instructions for audit of disbursement prerequisites
	 
	– 	 	 Interim proof
	 
	– 	 	 Proof of use (including Attachment 1)
	 
	– 	 	 Instructions for filling out the proof of use
	 
	– 	 	 Instructions for the audit of the proof of use for auditors and tax advisors
	 
	– 	 	 Evaluation of commercial equity capital (see requirement number 2.4.6)

FINANCING SCHEDULE/SPECIAL AUXILIARY CONDITIONS

Attachment 1 for the grant decision of the joint commission for support for the commercial economy

Application
number: 80124453

	1	 	Financing schedule
	 
	 	 	The following financing schedule forms the basis for this grant decision:

	 	 	 	 	 
	Source of funds	 	Euros
	Equity capital
	 	 	24,193,500.00	 
	Joint commission subsidy
	 	 	21,530,500.00	 
	Investment allowance
	 	 	23,756,000.00	 
	House bank loans
	 	 	48,244,000.00	 
	 
	 	 	 	 
	Total
	 	 	117,724,000.00	 
	 
	 	 	 	 

		 	of that, the amount guaranteed by the government:
	 
	 	 	House bank loans of 48,244,000.00 Euros
	 
	2	 	Special auxiliary conditions
	 
	2.1	 	Reservation of the right to withdraw
The grant decision is subject to the reservation of the right to
withdraw in full or in part (reservation of the right to withdraw
according to § 49 paragraph 2 number 1 in conjunction with § 36
paragraph 2 number 3 of the VwVfGBbg [Administrative Proceedings Act
for the State of Brandenburg]), to the extent that budgetary economic
measures make it necessary. The reservation of the right to withdraw
is applicable to the extent that the implementation of the project has
not yet commenced, or legal obligations that the recipient of the
grant must incur for the realization of the project were not yet
incurred.
	 
	 	 	Legal obligations in the above-mentioned sense are also the contracts
to be attributed directly to the realization of the project for the
purchase of the real estate, financing and planning expenses, expenses
for contracts and options contracts that cannot be dissolved by the
recipient of the grant. This also applies for portions, to the extent
that the projects are divided into independent project units.
	 
	2.2	 	Conditions that lead to dissolution
	 
	2.2.1	 	The determination of the highest-possible subsidy rate of 39.30 percent took place while
giving consideration to the information you provided in the financing schedule for claiming
additional public financing, which pertains in particular to the investment allowance,
guarantees from public funds, back-to-back guarantees, or liability discharges and loans with
subsidized interest. The required 25 % unsubsidized equity share of the financing for the
subsidized investments must be met. The recipient of the grant is obligated to provide notice
to InvestitionsBank without delay regarding changes. If the highest-possible subsidy rate
specified here is exceeded by changes to the financing, the subsidy granted

 

 

	 	 	decreases to a corresponding extent. In contrast, an increase in the grant by decreasing the
subsidy rate is precluded.
	 
	2.2.2	 	If a change is subsequently established for the financing of the assets acquired by
lease/installment purchase, the approved subsidy is reduced on a pro-rata basis. In this case,
the portion of the subsidy already disbursed without justification is to be reimbursed with
interest.
	 
	 	 	The recipient of the grant is obligated to provide notice of such changes in the financing
schedule to InvestitionsBank without delay.
	 
	2.2.3	 	This grant decision becomes invalid if a copy of the building permit/permit according to the
Federal Emissions Prevention Act, or a confirmation from the relevant authorities is not
submitted to InvestitionsBank before the end of six months after its publication, from which
it emerges that the approval procedure was initiated in a timely manner and the delay is not
the responsibility of the recipient of the grant.
	 
	2.3	 	Conditions of postponement
	 
	2.3.1	 	This grant decision is initially effective as soon as a copy of the guarantee document for
the federal/state guarantee designated under number 1 for the collateralization of the house
bank loan is submitted to InvestitionsBank des Landes Brandenburg [Investment Bank of the
State of Brandenburg].
	 
	2.4	 	Obligations
	 
	 	 	The grant decision is issued subject to the following obligations:
	 
	2.4.1	 	The investment project is to be started no later than within 6 months after publication of the grant decision.
	 
	2.4.2	 	The investment subsidy is scheduled as follows:

2008: 18,160,000.00 Euros

2009: 3,370,500.00 Euros

	 	 	The partial subsidy amount provided for the respective calendar year is to be released in
full

no later than October 30 of the respective calendar year

	 	 	in compliance with the additional release prerequisites.
	 
	 	 	If the implementation of the project, and therefore the submission of paid invoices can be
carried out at an earlier point in time, an early disbursement is possible according to the
requirements of the available invoices and within the limits of available domestic budgetary
funds. For the purpose of managing available funds, an earlier than expected demand should
be made as early as possible in the course of the year, and it should also be made known to
InvestitionsBank Brandenburg in a timely manner.
	 
	 	 	If it is foreseeable that the it will not be possible to release the subsidy funds by the
deadline, but still within the calendar year, then a request for an extension of the release
deadline can be made (at most through the end of the calendar year).
	 
	 	 	If the subsidy funds cannot be claimed in full by the end of the current calendar year, a
request that the funds be carried forward to the following calendar year can be made. If the
legal domestic budgetary prerequisites are provided, this request will be approved, but in
principle a legal claim to these funds no longer exists, however.
	 
	 	 	In each case, both requests are to be made prior to the expiration of the release deadline -
here October 30th. Otherwise the approved grant for the respective calendar year can be
withdrawn in part, effective for the future.
	 
	2.4.3	 	The assets subsidized by this investment subsidy must remain at the subsidized operational
site at least 5 years after the end of the investment period, unless they are replaced with
assets of equivalent or greater value. The subsidized assets may not be leased out during this
required period of retention. This does not apply in the case of the existence of an
operational split, a partnership or a consolidated

 

 

	 	 	company that is recognized for tax purposes. The recipient of the grant is obligated to
inform InvestitionsBank if the subsidized assets are sold or leased during this required
period of retention.
	 
	2.4.4	 	After the end of the investment period, proof of the creation and allocation of 400.00 jobs
(of those, 200.00 for women) and 7.00 apprenticeships at the subsidized operational site is to
be provided by the recipient of the grant. All jobs are to be continuously allocated by the
recipient of the grant for a period of 5 years after the end of the investment period.
Contractor jobs and jobs for independent contributors are not counted as jobs in this sense.
If the newly created permanent jobs are not made available to the job market in an
uninterrupted manner during a continuous period of at least 3 years after the investment
period, then InvestitionsBank reserves the right to extend the 5-year monitoring period by the
continuous period of the failure to provide job availability, up to a maximum of 8 years.
	 
	 	 	For the failure to fulfill the requirements specified above, we refer to your notification
obligation according to number 5 of the enclosed ANBest-P [General Auxiliary Conditions for
Grants for the Promotion of Projects].
	 
	2.4.5	 	For each release of funds, a confirmation from the auditor/tax consultant regarding the
existence of the necessary release prerequisites and the appropriate use of the funds, a
confirmation from the house bank regarding the secured overall financing, and a current
certificate of creditworthiness based on the attached template “Funds Release” are to be
submitted.
	 
	2.4.6	 	The acceptance of guarantees as security for any claims for reimbursement is waived because
the commercial equity capital of the recipient of the grant at least corresponds to the amount
of the subsidy, as evidenced by the calculation attached to the decision. In the case of a
subsequent decrease in the commercial equity capital below this limit within 5 years after the
end of the investment period, the recipient of the grant is required to provide to
InvestitionsBank without delay maximum amount guarantees from its shareholders, or
alternatively a bank, in the amount of the subsidy plus 20 %. This subsequent security will be
waived only if the reduction of the commercial equity capital directly affects the
implementation of the subsidy investment.
	 
	 	 	The recipient of the grant is obligated to provide notice to InvestitionsBank without delay
regarding changes to commercial equity capital.
	 
	2.4.7	 	Prior to the first disbursement, the following documents are to be submitted to
InvestitionsBank des Landes Brandenburg [Investment Bank of the State of Brandenburg]:

	 	– 	 	 Confirmation from IKB Deutsche Industriebank AG [IKB German Industrial Bank Corporation] regarding the readiness of the
loan for disbursement,
	 
	 	– 	 	 Approval according to the BImschG [Federal Emissions Prevention Act] or building permit,
	 
	 	– 	 	 Purchase contract for the operational real estate certified by a notary public.

	2.4.8	 	Deviating from ANBest-P [General Auxiliary Conditions for Grants for the Promotion of
Projects] number 6.1, the recipient of the grant is obligated to provide evidence of the use
of the funds after the end of each calendar year only if notable deviations from the original
plan arise in the implementation of the project in terms of time or in the type of the
composition of the investments/financing. The attached form Interim Proof is to be used for
this purpose.
	 
	2.4.9	 	In principle, after the end of the investment period an overall proof of use is to be
provided using the attached form. For the deadlines with respect to the submission of the
proof of use, reference is made to number 6.1 of the ANBest-P [General Auxiliary Conditions
for Grants for the Promotion of Projects]. The appropriate and timely use of the subsidy funds
is to be confirmed by a tax consultant/auditor by submitting the overall proof of use on the attached form.
	 
	2.4.10	 	If the so-called independence criteria for the recipient of the grant fails within a period
of 5 years after the end of the investment period, the original share financing for the
investments subject to the grant is reduced by 15 %. Considered independent are companies that
do not have 25 % or more of their capital or the votes in the possession of one or more
companies together, which do not fulfill the requirements of the definition of small and
mid-sized companies according to the Directive (EC) number 70/2001 from the Commission
(published in the official journal of the European Community L 10/33 dated January 13, 2001).
Small and mid-sized companies are defined as companies that employ fewer than 250 persons,

 

 

	 	 	have annual sales of at most 50 million Euros or an annual balance sheet total of at most 43
million Euros, and that for their part fulfill the independence criteria. Reference is made
to the directive specified above for the calculation of the threshold values and exceptional
circumstances.
	 
	2.4.11	 	Notice of a shareholder exchange or share exchange within the First Solar Group is
to be provided to InvestitionsBank des Landes Brandenburg [Investment Bank of the State of
Brandenburg] for the duration of the binding periods. (The German authorities are obligated to
provide notice to the European Commission of each change in the shareholder or investment
structure of the First Solar Group for verification of small and mid-sized company
status, and to issue the corresponding documents to it.)
	 
	2.4.12	 	Along with the proof of use, the recipient of the grant is required to submit a confirmation
from the tax consultant that the investments for which subsidy is applied were capitalized at
a reasonable level in the tangible fixed assets of the tax balance sheet.
	 
	2.4.13	 	Giving consideration to the maximum permissible amount of aid according to the multi-sector
aid framework for large investment projects according to number 24 for a project of
115,724,000.00 Euros, the project was approved for the amount 39.30 % (of that, 35.00 % for
expenses subject to aid in the amount of 50 million Euros, 17.50 % for expenses subject to aid
in the amount of an additional 50 million Euros, and 11.90 % for expenses subject to aid in
the amount of an additional 15.724 million Euros plus 15.00 % (small and mid-sized company
bonus) for all of the expenses subject to aid. If the permitted amount of aid is exceeded, the
excess subsidy issued is to be reclaimed.
	 
	2.4.14	 	Both during the course of the implementation of the project and after the completion of the
subsidy measures, the recipient of the grant is obligated to provide a report regarding the
results of the subsidy and the additional development during the required period of retention
upon request by InvestitionsBank des Landes Brandenburg [Investment Bank of the State of
Brandenburg].
	 
	2.4.15	 	The recipient of the grant is obligated to refrain from all measures that would interfere
with the proper implementation of the project and/or that would reduce its reliability. The
reliability of the recipient of the grant is lacking in particular if a sufficient suspicion
exists of a relevant criminal act (for example, subsidy fraud, infidelity, acts of bankruptcy)
against members of the executive board or shareholders of the recipient of the grant.
	 
	2.4.16	 	If the estimated investment allocation cannot be realized (or cannot be realized in the
amount provided) as a result of a change in the legal position, the state will replace the
proportional omitted share of the investment allowance originally expected and accounted for
in the financing schedule, given an appropriate change application. The possibility for the
proportional increase of the grant is limited to the term of the investment period for the
entire project, and is dependent on the availability of corresponding domestic budgetary
funds.
	 
	2.4.17	 	A land register abstract for the operational real estate is to be submitted with the proof
of use, from which the registration of the recipient of the grant as the owner is obvious.
	 
	2.5	 	Interest
	 
	 	 	With the law regarding the adjustment of administrative law
requirements to electronic legal relations, passed on December 17,
2003, the Administrative Proceedings Act for the state of Brandenburg
was modified by Article 1 (GVBl. [Law and Regulations Gazette] I page
298 et seq.).
	 
	 	 	Therefore, deviating from numbers 8.3 and 8.4 of the ANBest-P [General
Auxiliary Conditions for Grants for the Promotion of Projects], the
following provisions are applicable:
	 
	 	 	According to the requirements of § 49 a paragraph 3 of the VwVfGBbg
[Administrative Proceedings Act for the State of Brandenburg], the
claim for reimbursement is to accumulate interest at a rate of 5
percent greater than the respectively applicable prime rate according
to the BGB [German Civil Code].
	 
	 	 	If grant amounts are released early, even though other funds (for
example, equity capital, grants from third parties) are to be included
on a pro-rata basis and/or not used according to the disbursement
prerequisites for the fulfillment of the purpose of the grant, and if
the grant decision is not cancelled or withdrawn; interest in the
amount of 5 percent greater than the respectively applicable prime
rate

 

 

	 	 	according to the BGB [German Civil Code] is to be demanded at regular intervals for the
period from the disbursement until the appropriate use or until the end of the day on which
the established disbursement prerequisites have been provided.
	 
	2.6	 	Remarks
	 
	2.6.1	 	The grant is a subsidy in the sense of § 264 of the Criminal Code and of the Brandenburg
Subsidy Act dated November 11, 1996 (GVBl. Bbg. [Law and Regulations Gazette, Brandenburg] I,
number 24, page 306) in connection with §§ 2 through 6 of the Act Against Improper Claims for
Subsidies (Subsidy Act) dated July 29, 1976 (BGBl. [Federal Law Gazette] I, number 93, page
2037).
	 
	 	 	Relevant to subsidies in the sense of these requirements is all information from the
application, the other documents attached or yet to be provided upon request, as well as the
foundations for the grant decision and the contracts yet to be entered into, on which the
approval, grant, reclamation, further issuance or retention of a subsidy or a subsidy
benefit are dependent. In addition, this also applies to the release of funds as well as the
proof of use to be maintained.
	 
	 	 	According to § 3 of the Subsidy Act, notice is to be provided to InvestitionsBank des Landes
Brandenburg [Investment Bank of the State of Brandenburg] of all changes to the
circumstances indicated above that occur, or the occurrence of these circumstances. Even the
failure to provide notices regarding changes to these circumstances is relevant to
subsidies.
	 
	2.6.2	 	According to the applicable guidelines for the support of the commercial economy within the
context of the joint commission “Improvement of the Regional Economic Structure” (GA-G) dated
March 12, 2004, the provisions of number 3 of the ANBest-P [General Auxiliary Conditions for
Grants for the Promotion of Projects] and of number 1.1 of the NBest-Bau [Auxiliary Conditions
for Construction] are not to be applied for the allocation of contracts.

 

 

General Auxiliary Conditions for Grants for the Promotion of Projects (ANBest-P)

published in the Official Journal for Brandenburg — Number 41 dated October 18, 2000

The ANBest-P [General Auxiliary Conditions for Grants for the Promotion of Projects] contain
auxiliary conditions in the sense of § 36 of the Administrative Proceedings Act (VwVfGBbg) as well
as necessary explanations. They are an integral component of the grant decision, to the extent that
nothing is explicitly provided otherwise in it.

Contents

	 	 	 
	No. 1

	 	Request for and use of the grant
	 
	 	 
	No. 2

	 	Subsequent reduction of the expenses or change
of the financing
	 
	 	 
	No. 3

	 	Allocation of contracts
	 
	 	 
	No. 4

	 	Objects acquired for the fulfillment of the purpose of the
grant
	 
	 	 
	No. 5

	 	Notification obligations of the recipient of the grant
	 
	 	 
	No. 6

	 	Proof of use
	 
	 	 
	No. 7

	 	Audit of the use
	 
	 	 
	No. 8

	 	Reimbursement of the grant, interest

1 Request for and use of the grant

1.1 The grant may be used only for the fulfillment of the purpose specified in the grant
decision. It is to be used efficiently and economically.

1.2 All revenues associated with the purpose of the grant (in particular grants, payments by third
parties, and income from financial investments that accrue interest) and the equity share of the
recipient of the grant are to be used as covering funds for all expenses associated with the
purpose of the grant. The financing schedule is binding with respect to the overall result. The
individual expense amounts may be exceeded by up to 20 percent, to the extent that the excess can
be offset by corresponding savings in other expense amounts. If the overrun for an expense amount
is the result of official requirements or constraints, in particular in the context of the
construction law proceedings, additional deviations are permitted within the overall results for
the financing schedule. Sentences 2 through 4 are not applicable for fixed-amount financing.

1.3 If personnel expenses or equipment management expenses may be paid out of the grant, and if the
total expenses for the recipient of the grant are disputed primarily from governmental grants, the
recipient of the grant may not place his employees in a position better than state employees with
corresponding jobs. Salaries greater than those according to the BAT1 [Federal Salaried
Employees Tariff Contract] or the MTL1 [General Tariff Contract for State Employees] as
well as other payments above or beyond the tariff, may not be issued.

1.4 The grant may be requested only to the extent that, and not before it is required for payments
due within two month after the disbursement. The request for each partial amount must include the
information necessary for the determination of the funding requirement (estimated payments due less
expected revenues, including grants from third parties, equity share and any available cash
balances that are apportionable to the project). Apart from that, the grant may be claimed as
follows:

1.4.1 for share or fixed-amount financing in each case on a pro-rata basis with any grants from
other grant issuers and the provided equity and other funds from the recipient of the grants,

1.4.2 for shortfall financing if the provided equity and other funds from the recipient of the
grant are consumed. If the shortfall is financed on a pro-rata basis by multiple grant issuers, the
grant may be requested only on a pro-rata basis with the grants from other grant issuers.

1.5 Payments prior to the receipt of the consideration may be agreed to or made only to the extent
that this is generally customary or justified by particular circumstances.

1.6 The grant decision can be withdrawn for effect in the future if it turns out that the purpose
of the grant will not be achieved with the approved grant.

1.7 Claims from the grant decision may be neither assigned nor hypothecated.

2 Subsequent reduction of the expenses or change
of the financing

If the expenses that can be covered by the grant according to the financing schedule decrease
for the purpose of the grant after approval, if the covering funds increase, or if new covering
funds arise (for example, investment allowances), then the grant decreases

2.1 for share financing, on a pro-rata basis with any grants from other grant issuers and the
designated equity and other funds from the recipient of the grant,

2.2 for shortfall and complete financing, by the entire amount under consideration.

3 Allocation of contracts

During the allocation of contracts for the fulfillment of the purpose of the grant, the
following requirements are to be complied with:

3.1 If the grant, or by financing multiple locations, the total amount of the grant amounts to more
than 50,000 Euros,

	-	 	upon the allocation of contracts for construction services, Section I of the Allocation and Contract Ordinance for Construction Services (VOB) and
	 
	-	 	upon the allocation of contracts for deliveries and services, Section I of the Contracting Rules for the Award of Public Works Contracts (VOL).

Obligations of the recipient of the grant to apply Sections 2 et seq. of the VOB/A or VOL/A or the
VOF [Contracting rules for the award of independent contractor services] on the basis of § 98 of
the Act Against Competitive Limitations (GWB) and the Allocation Decree (VgV), or to comply with
other allocation provisions, remain unaffected. The approving authority is entitled to carry out
allocation audits.

3.2 Act for the Support of Independent Contractors and Small and Mid-sized Businesses in the State
of Brandenburg (BbgMFG) dated May 8, 1992 (GVBl. I page 166).

4 Objects acquired for the fulfillment of the purpose of the grant

4.1 Objects that are acquired or manufactured for the purpose of the grant are to be used for
the purpose of the grant and treated with care. The recipient of the grant may not use them
otherwise prior to the end of the time restriction established in the grant decision.

4.2 The recipient of the grant is required to inventory objects acquired for the fulfillment of the
purpose of the grant, the acquisition or manufacturing costs of which exceed 400 Euros. To the
extent the state is or becomes the owner for particular reasons, the objects are to be specially
marked in the inventory as the property of the state.

5 Notification obligations of the recipient of the grant

The recipient of the grant is obligated to notify the approving authority without delay if

5.1 after the submission of the financing schedule — even after the submission of the proof of use
- it applies for additional grants for the same purpose from other public offices, or receives
them, or if it receives funds (additional funds, as the case may be) from third parties,

5.2 the purpose or other circumstances relevant for the approval of the grant change or no longer
apply,

5.3 indications arise that the grant purpose will not be achieved, or at least not with the
approved grant,

 

			
	1	 	The tariffs applicable in the new Federal states (BAT-O [Federal Salaried Employees Tariff -
East] and MTArb-O [General Tariff Contract for Employees — East]) form the standard for public
service.

GE00004/valid after October 19, 2000

 

 

5.4 the released or disbursed amounts cannot be used within two months of disbursement,

5.5. objects to be inventoried within the time commitment are no longer used in a manner that
corresponds to the grant purpose, or are no longer needed,

5.6 a bankruptcy proceeding regarding its assets is applied for or opened.

6. Proof of use

6.1 The proof of use for the grant is to be provided to the approving authorities within six
months after fulfillment of the purpose of the grant, but no later than by the end of the sixth
month following the approval period (proof of use). If the grant purpose is not fulfilled by the
end of the budgetary year, an interim proof is to be provided within four months after the end of
the budgetary year regarding the amounts received in this year.

6.2 The proof of use consists of a factual report and evidence in figures.

6.3 The use of the grant as well as the results achieved are to be presented in detail in the
factual report.

6.4 In evidence provided in figures, the revenues and expenditures are be shown in temporal
sequence and separated from one another corresponding to the classification from the financing
schedule. The proof must include all revenues (grants, payments by third parties, equity funds) and
expenses associated with the grant purpose. The date, recipient/payer as well as the reason and
individual amount of each payment must be apparent. To the extent that the recipient of the grant
has the option of deducting input tax according to § 15 of the Sales Tax Act, only earnings (prices
without sales tax) may be taken into consideration.

6.5 The original vouchers (receipt and disbursement vouchers) regarding the individual payments,
and the agreements regarding the allocation of contracts are to be submitted with the proof.

6.6 If a simplified proof of use is permitted, it consists of the factual report and evidence in
figures, in which the receipts and disbursements are to be compiled in summary form corresponding
to the classification from the financing schedule. The requirement of the submission of the
supporting vouchers and contracts (number 6.5) is waived.

6.7 The interim proof (number 6.1 sentence 2) is to be provided as is the simplified proof of use.

6.8 The supporting vouchers must contain the information and attachments that are customary in
business transactions, and the expense vouchers in particular must have the recipient for the
payment, the reason for and the date of the payment, the proof of payment, and for objects, the
purpose and an inventory notation. In addition, the supporting vouchers must contain an unambiguous
classification note for the project (project number, for example). It is to be confirmed in the
proof of use that the disbursements were necessary, that the transactions were efficient and
effective, and that the information corresponds to the ledgers and the supporting vouchers, as the
case may be.

6.9 The recipient of the grant is required to store the supporting vouchers and contracts mentioned
in number 6.5 as well as all other vouchers associated with the subsidies (number 7.1 sentence 1)
for five years after submission of the proof of use, to the extent that a longer storage period is
not specified according to tax law or other requirements. Imaging or data media can also be used
for storage. The recording and reproduction procedures must correspond to the principles of proper
accounting or one of the generally permitted provisions of public administration.

6.10 If the recipient of the grant may forward funds to third parties for the fulfillment of the
purpose of the grant, the interim proof and proof of use to be provided by the receiving office
with respect to it are to be attached to the proof of use or interim proof according to number 6.1.

7 Audit of the use

7.1 The approving authority is entitled to demand ledgers, supporting vouchers and other
business documents, and to audit the use through a local survey, or to have an audit performed by
agents. The recipient of the grants is required to hold the required documents ready and to provide
the necessary information. In cases of number 6.10, these rights of the approving authority are
also to be stipulated with respect to third parties.

7.2 If the recipient of the grant maintains its own audit organization, the proof of use is to be
audited by it in advance, and the audit is to be certified by provision of its findings.

7.3 The state court of auditors and the relevant federal government audit officials are entitled to
audit the recipient of the grant and, if funds were forwarded to third parties, to audit these
third parties as well.

7.4 The European Court of Auditors is entitled to audit the recipient of the grant and, if funds
were forwarded to third parties, to audit these third parties as well, to the extent that the
disbursements were made in whole or in part at the expense of the budget of the European Union.

8. Reimbursement of the grant, interest

8.1 The grant is to be reimbursed to the extent that a grant decision is cancelled or withdrawn
with retroactive effect according to the Administrative Proceedings Act (in particular §§ 48 and 49
of the VwVfGBbg [Administrative Proceedings Act for the State of Brandenburg]) or other legal
requirements, or to the extent that it becomes otherwise invalid. This applies in particular if

8.1.1 the grant was obtained by means of incorrect or incomplete information,

8.1.2 the grant is not used for the intended purpose, or is no longer used for the intended
purpose,

8.1.3 a dissolving condition has occurred (for example, subsequent reduction of the disbursements
or change of the financing according to number 2).

8.2 A retroactive withdrawal can also come into effect to the extent that the recipient of the
grant

8.2.1 does not use the grant for the fulfillment of the purpose of the grant as soon as possible
after disbursement, or

8.2.2 obligations are not fulfilled, or are not fulfilled with a set period, in particular if the
prescribed proof of use is not submitted in a timely manner, and if notification obligations
(number 5) are not fulfilled in a timely manner. This applies even if a proceeding is applied for
or opened according to the bankruptcy system, or if the approving authority has explicitly reserved
the right to withdraw in the grant decision.

8.3 The claim for reimbursement is to accrue interest according to the requirements of § 49a
paragraph 3 of the VwVfGBbg [Administrative Proceedings Act for the State of Brandenburg] at 3
percent above the respectively applicable prime rate according to § 1 of the Discount Rate
Transition Act (DÜG) dated June 9, 1998 (BGBl. [Federal Law Gazette] I page 1242).

8.4 If grants are not used for the fulfillment of the purpose of the grant as soon as possible
after disbursement, and if the grant decision is not cancelled or withdrawn, interest in the amount
of 3 percent above the respectively applicable prime rate according to § 1 of the DÜG [Discount
Rate Transition Act] is typically to be demanded for the period from disbursement until appropriate
use.

GE00004/valid after October 19, 2000

 

 

Auxiliary Conditions for Construction (NBest-Bau)

published in the Official Journal for Brandenburg — Number 41 dated October 18, 2000

The NBest-Bau [Auxiliary Conditions for Construction] supplement the General Auxiliary Conditions
for Grants for the Promotion of Projects (ANBest-P). They contain auxiliary conditions in the sense
of § 36 of the Administrative Proceedings Act (VwVfGBbg) as well as necessary explanations. They
are an integral component of the grant decision, to the extent that nothing is explicitly provided
otherwise in it.

Contents

	 	 	 
	No. 1

	 	Allocation and implementation
	 
	 	 
	No. 2

	 	Construction invoice
	 
	 	 
	No. 3

	 	Proof of use

1 Allocation and implementation

1.1 The recipient of the grant is required to inform in a timely manner the construction
management appointed regarding the respective intended allocation, the commencement of construction
and the completion of the construction projects.

1.2 The implementation of the construction projects must correspond to the construction documents
that form the basis for the approval as well as the technical and construction-law requirements.

1.3 The construction documents may be deviated from only to the extent that the deviation is not
significant. A deviation is significant if it leads to a material change in the construction or
space agenda, a material increase in the operating expenses, or a material overrun in the
construction expenses. Significant deviations require the sanction of the approving authorities.

2 Construction invoice

2.1 The recipient of the grant is required to provide a construction invoice for each
construction project. If a construction project consists of multiple construction
objects/construction sections, separate construction invoices are to be provided.

2.2 The construction invoice consists of

2.2.1 Ledger of construction disbursements (divided for structural engineering according to DIN 276
Part 2; according to the requirements of the grant decision for other constructions); if the
revenues and expenses for the subsidized construction are shown separately from other accounting
events, corresponding directly to the proof or to the content and classification requirements of
DIN 276 through supplementary records, and if they can be attached for audit of the construction
invoice, then the maintenance of a separate ledger of construction disbursements can be waived with
the sanction of the approving authority.

2.2.2 the supporting vouchers for the invoice, labeled and classified according to number 2.1,

2.2.3 the account receipts and status plans,

2.2.4 the contracts regarding services and deliveries together with correspondence,

2.2.5 the permits from construction supervision authorities, the inspection and acceptance
certificates,

2.2.6 the grant decision and the letters regarding the provision of the funds,

2.2.7 the audited construction documents that form the basis of the grant decision,

2.2.8 the calculation of the areas provided and of the capacity according to DIN 277 (only for
structural engineering) and for residential structures the residential and usable area calculation
according to DIN 283,

2.2.9 the construction logbook.

3 Proof of use

3.1 Template 1 is to serve as the basis for the proof of use, and template 2 is to serve as the
basis for the interim proof. Because the itemization is to be provided by the construction invoice
(number 2), the submission of the ledgers and supporting vouchers is waived, deviating from number
6.5 of the ANBest-P [General Auxiliary Conditions for Grants for the Promotion of Projects]. The
construction invoice is to be kept ready for audit; only the calculations according to 2.2.8 are to
be attached to the proof of use.

3.2 If individual proofs of use are provided for parts of an entire property, then a summarized
proof of use according to template 1 is to be provided after completion of the entire property.

GE00004/valid after October 19, 2000

 

 

NOTES ON THE DISBURSEMENT

Joint commission “Improvement of the Regional Economic Structure”

Support for the commercial economy

The “Funds Release” form is to be submitted for the release of funds.

After inspecting the invoice documents that provide no cause for misgivings (due to project
irregularity*, for example), the auditor/tax consultant is to provide confirmation of this on the
“Funds Release” form, and

– that the necessary release prerequisites exist and

– the requested amount is used for subsidized investments for the repayment of financing already
provided.

The audit of the supporting vouchers for expenditure items that affect cash balances must be
carried out in full. A random selection of supporting vouchers is not permitted and will not be
accepted.

The disbursement will be provided by means of release in installments.

The requested funds are specified on the “Funds Release” form. For investments already made, a
maximum amount is disbursed, which corresponds to the subsidy rate according to the grant decision.

The disbursement amount is rounded to 100’s of Euros.

The disbursement of the remaining amount of 5 % of the total grant amount takes place only after
submission of an auditable proof of use.

The grant can only be paid out after the decision has become legally valid after the expiration of
the right to appeal period.

You can bring about the early legal validity of the grant decision and thus accelerate the
disbursement if you declare on the confirmation receipt that you waive the right to an appeal.

 

			
	*	 	for example, inappropriate use

W2001005 — 07.06

          1 of 1

 

 

NOTES ON THE AUDIT OF DISBURSEMENT PREREQUISITES

Joint commission “Improvement of the Regional Economic Structure”

Subsidy for the commercial economy

	1	 	Conformity of the realized/planned investments according to the grant decision (list of
investment goods) with the investments requested for the disbursement
	 
	 	 	The audit of the supporting vouchers for expenses that affect cash balances must be carried
out in full. A random selection of supporting vouchers is not permitted and will not be
accepted.
	 
	2	 	Audit of the eligibility of the investments to be subsidized
	 
	2.1	 	The following cannot be subsidized:

	 	-	 	in principle, the investments designated in the grant decision as not eligible for
subsidy in the grant decision,
	 
	 	-	 	expenses for the acquisition of the realty property for applications made up until
and including March 31, 1999, as well as after May 13, 2004 (receipt via mail at the
InvestitionsBank des Landes Brandenburg [Investment Bank of the State of Brandenburg] is
applicable here),
	 
	 	-	 	building acquisition from the trust institution or its successor organizations for
applications made up until and including September 7, 2003,
	 
	 	-	 	vehicles of all types that are authorized for street use, and that serve primarily
for transport (for example, commercial motor vehicles, personal motor vehicles — an
exception here are mere self-propelled machines (can be established on the basis of the
motor vehicle logbook), aircraft, ships,
	 
	 	-	 	used assets (exception: acquisition of a closed operational site/of an operational
site threatened with closure, or for companies being founded, the acquisition of assets
not already requested earlier (for applications made up to an including March 31, 1999,
only the acquisition of buildings), if they were not acquired from companies with a
commercial, legal or personal association),
	 
	 	-	 	acquisition of intangible assets (software, patents, licenses) from associated companies,
	 
	 	-	 	assets of low value (to the extent that no capitalization in the tax balance sheet takes place),
	 
	 	-	 	work materials, consumable goods, basic equipment goods, etc.
	 
	 	-	 	investments that serve for replacement acquisition,
	 
	 	-	 	financing expenses.

	2.2	 	The investments must be made in the investment period established in the grant decision. The
provisions of the respectively applicable framework plan are to be adhered to at the
commencement of an investment project. The following applies in principle: the commencement of
an investment project is the commencement of the first investment (entering into contracts for
delivery and services, issue of orders).
	 
	2.3	 	For construction projects, planning, soil testing and land acquisition are not considered the
commencement of the project.
	 
	2.4	 	Only expenditure items of the recipient of the grant that are capitalized in the tangible
fixed assets of the tax balance sheet are subsidized (net amounts, deduction of discounts,
rebates, etc). At the same time, both the granted as well as the claimed discounts and rebates
are in each case to be deducted.
	 
	2.5	 	Only assets used exclusively for the company’s own commercial purposes are subsidized.
Investments that are designated for rental/lease cannot be subsidized.
	 
	3	 	Determination of the disbursement amount
	 
	 	 	Investments that can be subsidized (determination see under points 1
and 2) x subsidy rate according the grant decision = disbursement
amount

The relevant administrator is at your disposal for any questions you may have!

			
	 	 	 
	W3007203 — 07.06
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