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Exhibit 10.1

REGISTRATION RIGHTS AGREEMENT

This Registration Rights Agreement (the “Agreement”) is made and entered into as of November 20, 2009 by and among MEMC Electronic Materials, Inc., a Delaware corporation (the “Company”); the Representatives of the Unitholders (the “Representatives”) as defined under that certain Agreement and Plan of Merger dated as of October 22, 2009, as amended, by and among the Company, Sierra Acquisition Sub, LLC, a Delaware limited liability company and indirect and wholly owned subsidiary of Parent, Sun Edison LLC, a Delaware limited liability company (the “LLC”), and the Representatives named therein (the “Merger Agreement”); and each of the Preferred Unitholders (as that term is defined in the Merger Agreement).

The parties hereby agree as follows:

1.         Certain Definitions.

Capitalized terms used herein and not otherwise defined herein shall have the meanings ascribed to them in the Merger Agreement.  As used in this Agreement, the following terms shall have the following meanings:

“Affiliate” means, with respect to any person, any other person which directly or indirectly controls, is controlled by, or is under common control with, such person.

 “Business Day” means a day, other than a Saturday or Sunday, on which banks in New York City are open for the general transaction of business.

“Common Stock” shall mean the Company’s common stock, par value $0.01 per share, and any securities into which such shares may hereinafter be reclassified.

“Earnout Consideration Shares” shall mean the shares of Common Stock issued to the Unitholders as “Earnout Consideration” pursuant to the Merger Agreement or as “Blocker Earnout Consideration” pursuant to the Blocker Purchase Agreements.

“Escrow Agreement” shall mean the Indemnity Escrow Agreement, dated as of the date hereof, by and among the Company, the Representatives and U.S. Bank National Association, as escrow agent.

“Escrow Consideration Shares” shall mean the shares of Common Stock issued and distributed to the Unitholders as “Escrowed Shares” pursuant to the Escrow Agreement.

“Initial Consideration Shares” shall mean the shares of Common Stock issued to the Unitholders as “Preferred Unitholder Initial Stock Payment” pursuant to the Merger Agreement or as “Blocker Net Merger Consideration” pursuant to Section 1.1(a) of the Blocker Purchase Agreements.

“Prospectus” shall mean the prospectus included in any Registration Statement, as amended or supplemented by any prospectus supplement, with respect to the terms of the offering of any portion of the Registrable Securities covered by such Registration Statement and by all other amendments and supplements to the prospectus, including post-effective amendments and all material incorporated by reference or deemed to be incorporated by reference in such prospectus.

“Register,” “registered” and “registration” refer to a registration made by preparing and filing a Registration Statement or similar document in compliance with the 1933 Act (as defined below), and the declaration or ordering of effectiveness of such Registration Statement or document.

“Registrable Securities” shall mean the Shares and any other securities issued or issuable in exchange for the Shares; provided that a security shall cease to be a Registrable Security upon (A) sale pursuant to a Registration Statement or Rule 144 under the 1933 Act, or (B) such security becoming eligible for sale by the Unitholder (other than a Unitholder that is an Affiliate of the Company) pursuant to Rule 144 without being subject to a volume limitation.

“Registration Statement” shall mean any registration statement of the Company filed under the 1933 Act that covers the resale of any of the Registrable Securities pursuant to the provisions of this Agreement, amendments and supplements to such Registration Statement, including post-effective amendments, all exhibits and all material incorporated by reference or deemed to be incorporated by reference in such Registration Statement, including the Initial Registration Statement, the Earnout Registration Statement and the Escrow Registration Statement.

“Representatives” has the meaning set forth in the Merger Agreement.

“SEC” means the U.S. Securities and Exchange Commission.

“Shares” means the Initial Consideration Shares, the Earnout Consideration Shares and the Escrow Consideration Shares.

“Unitholder” means a holder of any of the LLC’s Class A Units, Class B Units, Class C Units or Class D Units, or any Blocker Unitholder, for which the Representatives act as attorney-in-fact pursuant to the terms of the Merger Agreement or the Blocker Purchase Agreements and who has irrevocably elected to receive Initial Consideration Shares and Earnout Consideration Shares in lieu of cash pursuant to the terms of the Merger Agreement and the Blocker Purchase Agreements.

“WKSI” means a well-known seasoned issuer as defined under Rule 405 of the Securities Act.

“1933 Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

“1934 Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

2.         Registration.

(a)        Registration Statements.  

(i)         Promptly following the closing of the merger contemplated by the Merger Agreement (but in no event more than two (2) Business Days after such closing), the Company shall prepare and file with the SEC one Registration Statement on Form S-3 (or, if Form S-3 is not then available to the Company, on such form of registration statement as is then available to effect a registration for resale of the Initial Consideration Shares, subject to the Representatives’ consent), pursuant to Rule 415 under the Securities Act, covering the resale of the Initial Consideration Shares on a delayed or continuous basis (the “Initial Registration Statement”).  Such Initial Registration Statement also shall cover, to the extent allowable under the 1933 Act and the rules promulgated thereunder (including Rule 416), such indeterminate number of additional shares of Common Stock resulting from stock splits, stock dividends or similar transactions with respect to the Initial Consideration Shares.  The Initial Registration Statement (and each amendment or supplement thereto, and each request for acceleration of effectiveness thereof) shall be provided in accordance with Section 3(c) to the 
Representatives and the Representatives’ designated counsel a reasonable time prior to its filing or other submission.

(ii)        Promptly following the issuance of the Earnout Consideration Shares pursuant to the Merger Agreement (but in no event more than two (2) Business Days after such issuance), the Company shall prepare and file with the SEC one Registration Statement on Form S-3, or an amendment or supplement to an existing Registration Statement on Form S-3 (or, if Form S-3 is not then available to the Company, on such form of registration statement as is then available to effect a registration for resale of the Earnout Consideration Shares, subject to the Representatives’ consent), pursuant to Rule 415 under the Securities Act, covering the resale of the Earnout Consideration Shares on a delayed or continuous basis (the “Earnout Registration Statement”).  Such Earnout Registration Statement also shall cover, to the extent allowable under the 1933 Act and the rules promulgated thereunder (including Rule 416), such indeterminate number of additional shares of Common Stock resulting from stock splits, stock dividends or similar transactions with respect to the Earnout Consideration Shares.  The Earnout Registration Statement (and each amendment or supplement thereto, and each request for acceleration of effectiveness thereof) shall be provided in accordance with Section 3(c) to the Representatives and the Representatives’ designated counsel a reasonable time prior to its filing or other submission.

(iii)       Promptly following the distribution of the Escrow Consideration Shares to the applicable Unitholders pursuant to the Escrow Agreement (but in no event more than two (2) Business Days after such distribution), the Company shall prepare and file with the SEC one Registration Statement on Form S-3, or an amendment or supplement to an existing Registration Statement on Form S-3 (or, if Form S-3 is not then available to the Company, on such form of registration statement as is then available to effect a registration for resale of the Earnout Consideration Shares, subject to the Representatives’ consent), pursuant to Rule 415 under the Securities Act, covering the resale of the Earnout Consideration Shares on a delayed or continuous basis (the “Escrow Registration Statement”).  Such Escrow Registration Statement also shall cover, to the extent allowable under the 1933 Act and the rules promulgated thereunder (including Rule 416), such indeterminate number of additional shares of Common Stock resulting from stock splits, stock dividends or similar transactions with respect to the Escrow Consideration Shares.  The Escrow Registration Statement (and each amendment or supplement thereto, and each request for acceleration of effectiveness thereof) shall be provided in accordance with Section 3(c) to the Representatives and the Representatives’ designated counsel a reasonable time prior to its filing or other submission.

(b)       Expenses.  The Company will pay all expenses incurred by it in connection with each registration, including filing and printing fees, the Company’s counsel and accounting fees and expenses, costs associated with clearing the Registrable Securities for sale under applicable state securities laws and listing fees, but excluding discounts, commissions, fees of underwriters, selling brokers, dealer managers or similar securities industry professionals with respect to the Registrable Securities being sold and fees of the Representatives’ and Unitholders’ counsel.

(c)       Effectiveness.

(i)         If the Company is eligible as a WKSI, the Registration Statements shall utilize the automatic shelf registration process under Rule 415 and Rule 462. If the Company is not a WKSI or is otherwise ineligible to utilize the automatic shelf registration process, the Company shall use commercially reasonable efforts to have each Registration Statement declared effective as soon as practicable following the filing thereof.  The Company shall notify the Representatives by facsimile or e-mail as promptly as practicable after any Registration Statement is declared effective and shall as soon as reasonably practicable provide the Representatives, without charge, with such number of copies of any 
related Prospectus (including any amendments, supplements and exhibits) and such other documents (including any documents incorporated into the Registration Statement) as the Representatives may reasonably request in order to facilitate the sale or other disposition of the securities covered thereby.  The Company represents and warrants that it is a WKSI as of the date hereof.

(ii)        Notwithstanding anything to contrary, the Company may delay, suspend the use of or withdraw any Registration Statement or qualification of Registrable Securities if Company in good faith determines that any such Registration Statement, or the use thereof, would materially and adversely affect any material corporate event or would otherwise require disclosure of nonpublic information which the Company determines, in its reasonable judgment, is not in the best interests of the Company at such time, or, if the Company determines, in its reasonable judgment, that an event described in Section 3(h) has occurred (each, an “Allowed Delay”); provided, that the Company shall promptly (a) notify the Representatives and the Unitholders in writing of the existence of (but in no event, without the prior written consent of the Representatives, shall the Company disclose to the Representatives any of the facts or circumstances regarding) the event giving rise to an Allowed Delay, provided that the Company shall not be required to disclose material nonpublic information to the Representatives, (b) advise the Representatives and the Unitholders in writing that all sales must cease under the Registration Statement until the end of the Allowed Delay and (c) use commercially reasonable efforts to terminate an Allowed Delay as promptly as practicable.  Notwithstanding anything herein to the contrary, the Company covenants and agrees that the Company’s rights to delay or suspend the use of any Registration Statement or qualification of Registrable Securities during the pendency of any Allowed Delay shall not, in the aggregate, cause the Unitholders to be required to suspend sales of Registrable Shares pursuant to the Registration Statement or relieve the Company of its obligation to file, amend or supplement and maintain the effectiveness of a Registration Statement for longer than ninety (90) days during any twelve (12) month period.

3.         Company Obligations.  The Company will use commercially reasonable efforts to effect the registration of the Registrable Securities in accordance with the terms hereof, and pursuant thereto the Company will, as expeditiously as possible:

(a)       use commercially reasonable efforts to cause such Registration Statement to remain continuously effective for a period that will terminate upon the earlier of (i) the date on which all Registrable Securities covered by such Registration Statement as amended from time to time, have been sold, (ii) the date on which all Registrable Securities covered by such Registration Statement (other than with respect to Registrable Securities owned by Affiliates of the Company) may be sold pursuant to Rule 144 without being subject to any volume limitation or (iii) with respect to the Initial Registration Statement, one (1) year from the closing of the Merger Agreement, with respect to the Earnout Registration Statement, one (1) year from the issuance of the Earnout Consideration Shares pursuant to the Merger Agreement  and with respect to the Escrow Registration Statement, one (1) year from the distribution of Escrow Consideration Shares pursuant to the Escrow Agreement (the “Effectiveness Period”);  

(b)       prepare and file with the SEC such amendments, prospectus supplements or post-effective amendments to the Registration Statement and the Prospectus as may be necessary to keep the Registration Statement effective for the period specified in Section 3(a) and to comply with the provisions of the 1933 Act and the 1934 Act with respect to the distribution of all of the Registrable Securities covered thereby and, upon fifteen (15) Business Days’ notice, shall file any supplement or amendment to the Registration Statement and Prospectus with respect to the plan of distribution or a Unitholder’s ownership interests in his, her or its registrable Shares that is reasonably necessary to permit the sale of such Registrable Shares pursuant to the Registration Statement;

(c)       provide copies to and permit the Representatives’ counsel to review each Registration Statement and all amendments and supplements thereto no fewer than  seven (7) days prior to their filing with the SEC and not file any document to which such counsel reasonably objects based upon such counsel’s belief that such Registration Statement is not in compliance with applicable laws, rules or regulations or contains a material misstatement or omission;

(d)       furnish to the Representatives and their legal counsel (i) promptly after the same is prepared and publicly distributed, filed with the SEC, or received by the Company, one (1) copy of any Registration Statement and any amendment thereto, each preliminary prospectus and Prospectus and each amendment or supplement thereto, and each letter written by or on behalf of the Company to the SEC or the staff of the SEC, and each item of correspondence from the SEC or the staff of the SEC, in each case relating to such Registration Statement (other than any portion of any thereof which contains information for which the Company has sought confidential treatment), and (ii) such number of copies of a Prospectus, including a preliminary prospectus, and all amendments and supplements thereto and such other documents as the Representatives may reasonably request in order to facilitate the disposition of the Registrable Securities owned by the Unitholders that are covered by the related Registration Statement;

(e)       use commercially reasonable efforts to (i) prevent the issuance of any stop order or other suspension of effectiveness and, (ii) if such order is issued, obtain the withdrawal of any such order at the earliest possible moment;

(f)        prior to any public offering of Registrable Securities, use commercially reasonable efforts to register or qualify, or exempt therefrom, or cooperate with the Representatives and their counsel in connection with the registration or qualification, or exemption therefrom, of such Registrable Securities for offer and sale under the securities or blue sky laws of such jurisdictions requested by the Representatives and do any and all other commercially reasonable acts or things necessary or advisable to enable the distribution in such jurisdictions of the Registrable Securities covered by the Registration Statement; provided, however, that the Company shall not be required in connection therewith or as a condition thereto to (i) qualify to do business in any jurisdiction where it would not otherwise be required to qualify but for this Section 3(f), (ii) subject itself to general taxation in any jurisdiction where it would not otherwise be so subject but for this Section 3(f), or (iii) file a general consent to service of process in any such jurisdiction;

(g)       use commercially reasonable efforts to cause all Registrable Securities covered by a Registration Statement to be listed on each securities exchange, interdealer quotation system or other market on which similar securities issued by the Company are then listed and use commercially reasonable efforts to maintain such listing;

(h)       immediately notify the Representatives and the Unitholders in writing, at any time when a Prospectus relating to Registrable Securities is required to be delivered under the 1933 Act, upon discovery that, or upon the happening of any event or the passage of time as a result of which, the Prospectus included in a Registration Statement, as then in effect, includes an untrue statement of a material fact or omits to state any material fact required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances then existing, and at the request of the Representatives or any Unitholder, promptly prepare and furnish to the Representatives or such Unitholder a reasonable number of copies of a supplement to or an amendment of such Prospectus or the Registration Statement as may be necessary so that, as thereafter delivered to the purchasers of such Registrable Securities, such Prospectus shall not include an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances then existing; 

(i)        use commercially reasonable efforts to make and keep public information available, as that term is understood and defined in Rule 144 under the 1933 Act, at all times; and

(j)        otherwise use commercially reasonable efforts to comply with all applicable rules and regulations of the SEC under the 1933 Act and the 1934 Act and take such other actions as may be reasonably necessary to facilitate the registration of the Registrable Securities hereunder.

4.         Obligations of the Representatives and the Preferred Unitholders.

(a)       Each of the Preferred Unitholders and the Representatives shall furnish in writing to the Company such information regarding itself, the Company securities held by each of them (including Registrable Securities) and, in the case of the Representatives such information concerning each of the other Unitholders, and the intended method of disposition of the Registrable Securities held by them, as shall be reasonably required to effect the registration of such Registrable Securities and shall execute such documents in connection with such registration as the Company may reasonably request.  At least ten (10) Business Days prior to the first anticipated filing date of any Registration Statement, the Company shall notify the Representatives and the Preferred Unitholders of the information the Company requires in order to have the Registrable Securities included in the Registration Statement.  The Representatives and the Preferred Unitholders shall provide such information to the Company at least three (3) Business Days prior to the first anticipated filing date of such Registration Statement.  The Company shall not be required to include any Registrable Securities of any Unitholder in a Registration Statement if required information from such Unitholder is not furnished to the Company within the three (3) Business Days.

(b)       The Representatives and each of the Preferred Unitholders agree to cooperate with the Company as reasonably requested by the Company in connection with the preparation and filing of a Registration Statement hereunder, unless the Representatives and the Preferred Unitholders have notified the Company in writing of their election to exclude all of the Registrable Securities from such Registration Statement.

(c)       The Representatives and each of the Preferred Unitholders agree that, upon receipt of any notice (which may be oral as long as written notice is provided by the next day) from the Company of either (i) the commencement of an Allowed Delay pursuant to Section 2(c)(ii) or (ii) the happening of an event pursuant to Section 3(h) hereof, the Preferred Unitholders will immediately discontinue, and the Representatives will immediately notify all other Unitholders to discontinue, the disposition of Registrable Securities pursuant to the Registration Statement covering such Registrable Securities, until otherwise notified in writing by the Company or until the Unitholders’ receipt of the copies of the supplemented or amended prospectus filed with the SEC and until any related post-effective amendment is declared effective and, if so directed by the Company, the Representatives and the Preferred Unitholders shall deliver or cause to be delivered to the Company (at the expense of the Company) or destroy or cause to be destroyed (and deliver to the Company a certificate of destruction) all copies in each Representative’s or Preferred Unitholder’s possession of the Prospectus covering the Registrable Securities current at the time of receipt of notice of an event described in Section 3(h) hereof.  The address of each Preferred Unitholder is as set forth on the signature pages hereto and the Representatives will deliver a list of all other Unitholders and their respective mailing addresses as of the signing of this Agreement.

(d)       Each of the Preferred Unitholders covenant and agree, and the Representatives covenant and agree that they will comply (and, in the case of the Representatives, will instruct the other Unitholders to comply) with the prospectus delivery requirements of the 1933 Act as applicable in connection with sales of Registrable Securities pursuant to the Registration Statement.

(e)       Neither the Representatives nor any Unitholder may use any confidential information received by them pursuant to this Agreement or the Merger Agreement (including, without limitation, any notice referred to in Section 2(c)(ii) or 3(h) hereof) in violation of the 1934 Act or other applicable state or federal securities law or reproduce, disclose, or disseminate such information to any other person (other than his or her attorneys, agents and representatives having a need to know, and then only if they expressly agree to be bound hereby), unless such information has been made available to the public generally (other than by such recipient in violation hereof) or such recipient is required to disclose such information by a governmental body or regulatory agency or by law in connection with a transaction that is not otherwise prohibited hereby, and then only after reasonable notice to the Company and it has been provided a reasonable opportunity to object to such disclosure, with the reasonable cooperation and assistance of such Representative or Unitholder. Each of the Preferred Unitholders and the Representatives agree to comply (and, in the case of the Preferred Unitholders, to cause each Unitholder to comply) with the 1933 Act and other applicable laws in connection with the offer or sale of any Registrable Securities. The obligations in this Section 4(f) shall survive the expiration or termination of this Agreement.

5.         Indemnification.

(a)       Indemnification by the Company.  The Company will indemnify and hold harmless, to the fullest extent permitted by law, the Representatives and the Unitholders, and their respective officers, directors, members, employees and agents, successors and assigns, and each other person, if any, who controls the Representatives or any Unitholder (each, a “Holder Indemnitee” and collectively, the “Holder Indemnitees’) within the meaning of the 1933 Act, against any losses, claims, damages or liabilities, joint or several, to which they may become subject under the 1933 Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon: (i) any untrue statement or alleged untrue statement of any material fact contained in any Registration Statement, any preliminary prospectus or final prospectus contained therein, or any amendment or supplement thereof; (ii) any blue sky application or other document executed by the Company or any written information furnished by the Company filed, in any state or other jurisdiction in order to qualify any or all of the Registrable Securities under the securities laws thereof (any such application, document or information herein called a “Blue Sky Application”); (iii) the omission or alleged omission to state in any Registration Statement, any preliminary prospectus or final prospectus contained therein, or any amendment or supplement thereof a material fact required to be stated therein or necessary to make the statements therein not misleading; (iv) any failure to register or qualify the Registrable Securities included in any such Registration Statement in any state or (v) any violation or alleged violation by the Company of the 1933 Act, the 1934 Act, any state securities law, any rule or regulation promulgated under the 1933 Act, the 1934 Act or any state securities law and, in all such cases, will reimburse the Holder Indemnitees for any legal or other expenses incurred by them in connection with investigating or defending any such loss, claim, damage, liability or action; provided, however, that the Company will not be liable in any such case if and to the extent that any such loss, claim, damage or liability arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission made in conformity with information regarding a Holder Indemnitee furnished by such Holder Indemnitee in writing specifically for use in such Registration Statement or Prospectus, or in the case of an occurrence of an Allowed Delay or of an event of the type specified in Section 3(h), the use by such Holder Indemnitee of an outdated or defective Prospectus after the Company has notified the Representatives and the Unitholders in writing that the Prospectus is outdated or defective and prior to the receipt by the Representatives and the Unitholders of an amended or supplemented Prospectus, but only if and to the extent that following the receipt of such amended or supplemented Prospectus the misstatement or omission giving rise to such liability would have been corrected.  

(b)       Indemnification by the Unitholders.  Each of the Preferred Unitholders agree, and the Representatives agree on behalf of the other Unitholders, to indemnify and hold harmless, to the fullest extent permitted by law, the Company, its directors, officers, employees, stockholders and each person who controls the Company (within the meaning of the 1933 Act) against any losses, claims, damages, liabilities and expense (including reasonable attorney fees) resulting from any untrue statement of a material fact or any omission of a material fact required to be stated in the Registration Statement or Prospectus or preliminary prospectus or amendment or supplement thereto or necessary to make the statements therein not misleading, to the extent that such untrue statement or omission is contained in any information regarding a Holder Indemnitee furnished in writing by such Holder Indemnitee to the Company specifically for inclusion in such Registration Statement or Prospectus or amendment or supplement thereto, or in the case of an occurrence of an Allowed Delay or an event of the type specified in Section 3(h), the use by such Holder Indemnitee of an outdated or defective Prospectus after the Company has notified the Representatives and the Unitholders in writing that the Prospectus is outdated or defective and prior to the receipt by the Representatives and the Unitholders of an amended or supplemented Prospectus, but only if and to the extent that following the receipt of the amended or supplemented Prospectus the misstatement or omission giving rise to such liability would have been corrected.  In no event shall the liability of any Unitholder be greater in amount than the dollar amount of the proceeds received by such Unitholders upon the sale of the Registrable Securities included in the Registration Statement giving rise to such indemnification obligation.

(c)       Conduct of Indemnification Proceedings.  Any person entitled to indemnification hereunder shall (i) give prompt notice to the indemnifying party of any claim with respect to which it seeks indemnification and (ii) permit such indemnifying party to assume the defense of such claim with counsel reasonably satisfactory to the indemnified party; provided that any person entitled to indemnification hereunder shall have the right to employ separate counsel and to participate in the defense of such claim, but the fees and expenses of such counsel shall be at the expense of such person unless (a) the indemnifying party has agreed to pay such fees or expenses, or (b) the indemnifying party shall have failed to promptly assume the defense of such claim and employ counsel reasonably satisfactory to such person or (c) in the reasonable judgment of any such person, based upon advice of its counsel, a conflict of interest exists between such person and the indemnifying party with respect to such claims (in which case, if the person notifies the indemnifying party in writing that such person elects to employ separate counsel at the expense of the indemnifying party, the indemnifying party shall not have the right to assume the defense of such claim on behalf of such person); and provided, further, that the failure of any indemnified party to give notice as provided herein shall not relieve the indemnifying party of its obligations hereunder, except to the extent that such failure to give notice shall materially adversely affect the indemnifying party in the defense of any such claim or litigation.  It is understood that the indemnifying party shall not, in connection with any proceeding in the same jurisdiction, be liable for fees or expenses of more than one separate firm of attorneys at any time for all such indemnified parties except to the extent that based upon advice of counsel, a conflict of interest exists between the indemnified parties.  No indemnifying party will, except with the consent of the indemnified party, consent to entry of any judgment or enter into any settlement that does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability in respect of such claim or litigation.

(d)       Contribution.  If for any reason the indemnification provided for in the preceding paragraphs (a) and (b) is unavailable to an indemnified party or insufficient to hold it harmless, other than as expressly specified therein, then the indemnifying party shall contribute to the amount paid or payable by the indemnified party as a result of such loss, claim, damage or liability in such proportion as is appropriate to reflect the relative fault of the indemnified party and the indemnifying party, as well as any other relevant equitable considerations.  No person guilty of fraudulent misrepresentation within the 
meaning of Section 11(f) of the 1933 Act shall be entitled to contribution from any person not guilty of such fraudulent misrepresentation.  In no event shall the contribution obligation of a holder of Registrable Securities be greater in amount than the dollar amount of the proceeds (net of all expenses paid by such holder in connection with any claim relating to this Section 5 and the amount of any damages such holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission) received by it upon the sale of the Registrable Securities giving rise to such contribution obligation.

 
6.         Miscellaneous.

(a)       Actions by the Representatives.  The Company acknowledges and agrees that, at all times, an agreement between at least two of the three Representatives shall be required for the Representatives to take any action or to give any consent in their capacity as the Representatives (on behalf of the Unitholders).  

(b)       Amendments and Waivers.  This Agreement may be amended only by a writing signed by the Company, the Representatives and the Preferred Unitholders.  The Company may take any action herein prohibited, or omit to perform any act herein required to be performed by it, only if the Company shall have obtained the written waiver of the Representatives and the Preferred Unitholders of, or the Representatives’ (or in the case of a Preferred Unitholder, the Preferred Unitholder’s) consent to, such amendment, action or omission to act.

(c)       Notices.  All notices and other communications provided for or permitted hereunder shall be made as set forth in Section 9.1 of the Merger Agreement.

(d)       Assignments and Transfers by the Representatives and the Unitholders.  This Agreement may not be assigned by the Preferred Unitholders or the Representatives except that the Representatives may assign this Agreement (i) to each and all of the Unitholders who are not original signatories hereto who then hold Registrable Securities and shall agree in writing to be bound by the terms and conditions of this Agreement and who execute a counterpart hereto and provide the same to the Company, provided that the Company consents to such assignment prior to its effectiveness or (ii) to any successor Representative in accordance with the terms of the Merger Agreement.

(e)       Assignments and Transfers by the Company.  This Agreement may not be assigned by the Company (whether by operation of law or otherwise) without the prior written consent of the Representatives, provided, however, that the Company shall assign its rights and delegate its duties hereunder to any surviving or successor corporation in connection with a merger or consolidation of the Company with another corporation, or a sale, transfer or other disposition of all or substantially all of the Company’s assets to another corporation, without the prior written consent of the Representatives or any Unitholder after notice duly given by the Company to the Representatives and the Unitholders.

(f)        Successors and Assigns; Benefits of the Agreement.  Subject to Section 6(d) above, the terms and conditions of this Agreement shall inure to the benefit of and be binding upon the respective successors and assigns of the parties.  Without limitation of the foregoing, all rights, obligations and liabilities of the Representatives hereunder arising as of and after the date any successor Representative is named in accordance with the Merger Agreement shall be automatically transferred to any such successor Representative.  Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties hereto or their respective successors and assigns any rights, remedies, obligations, or liabilities under or by reason of this Agreement; provided, however, that each of the Unitholders is expressly intended to be a third party beneficiary of this Agreement .  

(g)       Counterparts; Faxes; PDF.  This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.  This Agreement may also be executed via facsimile or by e-mail delivery of an executed document in Portable Document Format (PDF), which shall be deemed an original.

(h)       Severability.  Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof but shall be interpreted as if it were written so as to be enforceable to the maximum extent permitted by applicable law, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.  To the extent permitted by applicable law, the parties hereby waive any provision of law which renders any provisions hereof prohibited or unenforceable in any respect.

(i)        Governing Law; Waiver of Jury Trial.  This Agreement shall be governed by, and construed in accordance with, the internal laws of the State of Delaware, without regard to the choice of law principles thereof.  EACH OF THE PARTIES HERETO WAIVES ANY RIGHT TO REQUEST A TRIAL BY JURY IN ANY LITIGATION WITH RESPECT TO THIS AGREEMENT AND REPRESENTS THAT COUNSEL HAS BEEN CONSULTED SPECIFICALLY AS TO THIS WAIVER.

(j)        Termination.  The Preferred Unitholders represent and warrant to the Company that on the date hereof they collectively own at least 60% of the “Registrable Securities” under and as defined in the Registration Rights Agreement, dated as of June 15, 2006, as amended on May 26, 2007, September 4, 2007, December 28, 2007, March 4, 2008, April 22, 2008, June 26, 2008, September 29, 2008 and February 27, 2009 by and among the LLC, GSFS Investments I Corp. and certain other holders of units of the LLC identified therein (the “LLC Registration Rights Agreement”).  The Preferred Unitholders and the LLC hereby agree that effective on the date hereof the LLC Registration Rights Agreement shall be amended to be terminated and of no further force or effect. 

[SIGNATURE PAGE FOLLOWS]

            IN WITNESS WHEREOF, the parties have executed this Registration Rights Agreement or caused their duly authorized officers to execute this Agreement as of the date first above written.

 

	
Company:

	
MEMC Electronic Materials, Inc.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
By:

	
/s/ Bradley D. Kohn

	
 

	
Name:

	
Bradley D. Kohn

	
 

	
Title:

	
Senior Vice President and General Counsel

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Representatives:

	
 

	
 

	
 

	
 

	
/s/ Carlos Domenech

	
 

	
Carlos Domenech

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
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[Signature Page To Registration Rights Agreement]ex10-2.htm - Generated by SEC Publisher for SEC Filing

Exhibit 10.2

 

MEMC ELECTRONIC MATERIALS, INC. 

2009 SPECIAL INDUCEMENT GRANT PLAN

 

 

1.          Purpose of the Plan 

The purpose of this MEMC Electronic Materials, Inc.  2009 Special Inducement Grant Plan is to promote the interests of the Company and its stockholders by providing certain employees of Target LLC with an appropriate incentive to encourage them to continue in the service and employ of the Company or an Affiliate and to improve the growth and profitability of such entities.  

2.         Definitions 

As used in this Plan, the following capitalized terms shall have the following meanings: 

(a)        “Affiliate” shall mean, with respect to the Company, any other Person that, directly or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with the Company.  

(b)        “Award” shall mean an Option or a Restricted Stock Unit granted to a Participant pursuant to the terms of this Plan, as evidenced by an Award Agreement.  

(c)        “Award Agreement” shall mean, in the case of an Option, a Stock Option Grant Agreement and in the case of a Restricted Stock Unit, a Restricted Stock Unit Agreement.  

(d)        “Board” shall mean the Board of Directors of the Company.  

(e)        “Cause” shall mean, when used in connection with the termination of a Participant’s Employment, the termination of the Participant’s Employment by the Company or any Affiliate which Employs such Participant on account of (i) the failure of the Participant to make a good faith effort to substantially perform his duties hereunder (other than any such failure due to the Participant’s Disability) or Participant’s insubordination with respect to a specific directive of the Participant’s supervisor or officer to which the Participant reports directly or indirectly; (ii) Participant’s dishonesty, gross negligence in the performance of his duties hereunder or engaging in willful misconduct, which in the case of any such gross negligence, has caused or is reasonably expected to result in direct or indirect material injury to the Company or any of its Affiliates; (iii) breach by Participant of any material provision of any other written agreement with the Company or any of its Affiliates or material violation of any Company policy applicable to Participant; or (iv) Participant’s commission of a crime that constitutes a felony or other crime of moral turpitude or fraud.  If, subsequent to Participant’s termination of employment hereunder for other than Cause, it is determined in good faith by the Company that Participant’s employment could have been terminated for Cause hereunder, Participant’s employment shall, at the election of the Company, be deemed to have been terminated for Cause retroactively to the date the events giving rise to Cause occurred.  

(f)        “Code” shall mean the Internal Revenue Code of 1986, as amended.  

(g)        “Commission” shall mean the U.S.  Securities and Exchange Commission.  

(h)        “Committee” shall mean the Committee appointed by the Board pursuant to Section 3 of this Plan, or in the absence of such appointment, the Board.  

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

(j)         “Company” shall mean MEMC Electronic Materials, Inc.  

(k)        “Disability” shall mean, with respect to any Participant, that, as a result of incapacity due to a physical or mental illness, such Participant is, or is reasonably likely to become, unable to perform his or her duties for more than six (6) months or six (6) months in the aggregate during any twelve (12) month period.  Notwithstanding the foregoing, if, as of the date of determination, the Participant is party to an effective employment or consulting agreement or Award Agreement that contains a different definition of the term “Disability” (or any derivation of such term), the definition in such agreement shall control.  

(l)         “Eligible Employee” shall mean any individual who becomes an employee of the Company or an Affiliate as of the closing date of the Target Merger and who was employed by Target LLC as of such closing date.

(m)       “Employment” shall mean employment with the Company or any Affiliate and/or service as a consultant for the Company or any Affiliate.  “Employee,” “Employed” and “Employs” shall have correlative meanings.  

(n)        “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.  

(o)        “Exercise Date” shall have the meaning set forth in Section 5.8 herein.  

(p)        “Exercise Notice” shall have the meaning set forth in Section 5.8 herein.  

(q)        “Exercise Price” shall mean the price that the Participant must pay under the Option for each share of Common Stock as determined by the Committee and specified in the Stock Option Grant Agreement.  

(r)        “Fair Market Value” shall mean, as of any date, the closing price of the share of Common Stock, as reported on the New York Stock Exchange for such date or such national securities exchange as may be designated by the Board or, if Common Stock was not traded on such date, on the next preceding day on which Common Stock was traded.  

(s)        “Grant Date” shall mean the closing date of the Target Merger.

(t)        “Non-Qualified Stock Option” shall mean an Option that is not an “incentive stock option” within the meaning of Section 422 of the Code.  

2

(u)        “Option” shall mean the option to purchase Common Stock granted to any Participant under the Plan.  Each Option granted hereunder shall be a Non-Qualified Stock Option and shall be identified as such in the Stock Option Grant Agreement by which it is evidenced.  

(v)        “Option Spread” shall mean, with respect to an Option, the excess, if any, of the Fair Market Value of a share of Common Stock as of the applicable Valuation Date over the Exercise Price.  

(w)       “Participant” shall mean an Eligible Employee to whom a Grant of an Award under the Plan has been made, and, where applicable, shall include Permitted Transferees.  

(x)        “Permitted Transferee” shall mean a Transferee who meets the requirements set forth in Section 5.5.  

(y)        “Person” means an individual, partnership, corporation, limited liability company, unincorporated organization, trust or joint venture, or a governmental agency or political subdivision thereof.  

(z)        “Plan” means this MEMC Electronic Materials, Inc.  2009 Special Inducement Grant Plan, as it may be amended from time to time.  

(aa)      “Restricted Stock Unit” shall mean the right to receive a share of Common Stock from the Company at a designated time in the future (provided such Restricted Stock Unit is vested at such time) which is granted to a Participant pursuant to Section 6 herein and which is subject to the restrictions set forth in Section 6 herein or in any Restricted Stock Unit Agreement that evidences such right.  The participant does not have the rights of a stockholder until receipt of the Common Stock.  

(bb)      “Restricted Stock Unit Agreement” shall mean the separate written agreement evidencing the grant of each Restricted Stock Unit pursuant to the Plan.  

(cc)      “Securities Act” shall mean the Securities Act of 1933, as amended.  

(dd)      “Stock Option Grant Agreement” shall mean the separate written agreement evidencing the grant of each Option pursuant to the Plan.  

(ee)      “Target Merger” shall mean the merger of a wholly owned subsidiary of the Company with and into Target LLC.

(ff)       “Transfer” shall mean any transfer, sale, assignment, gift, testamentary transfer, pledge, hypothecation or other disposition of any interest.  “Transferable”, “Transferee” and “Transferor” shall have correlative meanings.  

(gg)      “Valuation Date” shall mean the trading date immediately preceding the date of the relevant transaction.  

3

(hh)      “Vesting Date” shall mean, in the case of an Option, the date an Option becomes exercisable pursuant to Section 5.3 and in the case of Restricted Stock Units, the date a right to receive a share of Common Stock vests pursuant to Section 6.2.  

3.         Administration of the Plan 

The Plan shall be administered by the Committee, which shall be comprised of no fewer than two members of the Board who shall be appointed from time to time by the Board.  The Committee may delegate its authority to grant Awards to a subcommittee of such Committee comprised solely of outside directors.  In the absence of a Committee, the Board shall function as the Committee for all purposes under the Plan, and to the extent that the Board so acts, references in this Plan to the Committee shall refer to the Board as applicable.  

3.1       Powers of the Committee.  In addition to the other powers granted to the Committee under this Plan, the Committee shall have the discretionary power: (a) to determine to which of the Eligible Employees grants of Awards shall be made; (b) to determine whether a grant of an Award will consist of an Option, Restricted Stock Units or any combination thereof, (c) to determine the time or times when grants shall be made and to determine the number of shares of Common Stock subject to each such Award; (d) to prescribe the form of any Award Agreement evidencing an Award and make any amendment or modification to any Award Agreement consistent with the terms of this Plan; (e) to determine the terms and conditions applicable to each Award (which need not be identical); (f) to adopt, amend and rescind such rules and regulations as, in its opinion, may be advisable for the administration of this Plan; (g) to construe and interpret this Plan, such rules and regulations and the instruments evidencing the Awards; and (h) to make all other determinations necessary or advisable for the administration of this Plan.  

3.2       Determinations of the Committee.  Any grant of an Award, determination, prescription or other act of the Committee made in good faith shall be final and conclusively binding upon all persons.  

3.3       Indemnification of the Committee.  No member of the Committee or the Board shall be liable for any action or determination made in good faith with respect to this Plan or any Award.  To the full extent permitted by law, the Company shall indemnify and hold harmless each person made or threatened to be made a party to any civil or criminal action or proceeding by reason of the fact that such person, or such person’s testator or intestate, is or was a member of the Committee.  

3.4       Inconsistent Terms.  In the event of a conflict between the terms of this Plan and the terms of any Award Agreement, the terms of this Plan shall govern.  

4.         Shares Subject to this Plan 

Subject to adjustment as provided in this Section 4 and Section 8 hereof, the maximum number of shares of Common Stock available for grant under this Plan shall be 3,000,000.  To the extent that any Award granted under this Plan terminates, expires or is canceled without having been exercised, the shares covered by such Award shall not again be available for grant under this Plan.  

5.         Options 

4

5.1       Identification of Options.  The Options granted under this Plan shall be clearly identified in the Stock Option Grant Agreement as Non-Qualified Stock Options.  

5.2       Exercise Price.  The Exercise Price of any Option granted under this Plan shall be such price as the Committee shall determine and which shall be specified in the Stock Option Grant Agreement; provided, however, that such price may not be less than the Fair Market Value of a share of Common Stock on the Grant Date.

5.3       Vesting Date of Options.  Each Stock Option Grant Agreement shall indicate the date or conditions, including the achievement of certain performance objectives, under which such Option shall become exercisable.  

5.4       Limitation on Transfer.  During the lifetime of a Participant, each Option shall be exercisable only by such Participant unless the Participant obtains written consent from the Company to Transfer such Option to a specified Transferee (a “Permitted Transferee”) or the Participant’s Stock Option Grant Agreement provides otherwise.  Only Transfers of Options without consideration shall be permitted.  

5.5       Condition Precedent to Transfer of Any Option.  It shall be a condition precedent to any Transfer of any Option by any Participant that the Transferee, if not already a Participant in the Plan, shall agree prior to the Transfer in writing with the Company to be bound by the terms of the Plan and the Stock Option Grant Agreement as if the Transferee had been an original signatory thereto.  

5.6       Effect of Void Transfers.  In the event of any purported Transfer of any Options in violation of the provisions of the Plan, such purported Transfer shall, to the extent permitted by applicable law, be void and of no effect.  

5.7       Exercise of Options.  A Participant may exercise any or all of his vested Options by serving an Exercise Notice on the Company as provided in Section 5.8 hereto.

5.8       Method of Exercise.  Unless otherwise determined by the Committee, the Option shall be exercised by delivery of written notice to the Company’s principal office (the “Exercise Notice”), to the attention of its Secretary, no less than five business days in advance of the effective date of the proposed exercise (the “Exercise Date”).  Such notice shall (a) specify the number of shares of Common Stock with respect to which the Option is being exercised, the Grant Date of such Option and the Exercise Date, (b) be signed by the Participant and (c) if the Option is being exercised by the Participant’s Permitted Transferee(s), such Permitted Transferee(s) shall indicate in writing that they agree to and shall be bound by this Plan and Stock Option Grant Agreement as if they had been original signatories thereto.  The Exercise Notice shall include (i) payment in cash for an amount equal to the Exercise Price multiplied by the number of shares of Common Stock specified in such Exercise Notice, or (ii) if approved in advance by the Committee, a certificate representing the number of shares of Common Stock with a Fair Market Value equal to the Exercise Price multiplied by the number of shares of Common Stock specified in such Exercise Notice or a combination of cash and certificates or any other method otherwise approved by the Committee.  In its discretion, the Committee may also permit any Participant to exercise an Option through a cashless exercise procedure involving a broker or dealer approved by the Committee, provided that the participant complies with the procedures for such an exercise established by the Committee.  

5

5.9       Issuance of Shares.  Subject to any governing rules or regulations, upon the exercise of the Options in accordance with Section 5.8, the Company shall issue shares of Common Stock to the Participant (a) by issuing certificates of shares of Common Stock in the name of the Participant and delivering such certificates to the Participant (or such shares shall be held in the name of the Participant in book entry form by a broker/dealer designated by the Participant or the Company) or (b) by book entry on the Company’s transfer agent and registrar’s books of account in an appropriate amount based upon the number of shares purchased under the Option.

5.10     Termination of Options.  The Committee may, at any time, in its absolute discretion, without amendment to this Plan or any relevant Stock Option Grant Agreement, terminate the Options then outstanding, whether or not exercisable, provided, however, that the Company, in full consideration of such termination, shall pay with respect to any Option, or portion thereof, then outstanding, an amount equal to the Option Spread determined as of the Valuation Date coincident with or next succeeding the date of termination.  Such payment shall be made as soon as practicable after the payment amounts are determined.  

5.11     Rights as Stockholder.  Except as otherwise expressly provided herein, the Participants shall not have any rights as stockholders with respect to any shares of Common Stock covered by or relating to the Options granted pursuant to this Plan until the date such Options are exercised under Section 5.8 and issued under Section 5.9.  Except as otherwise expressly provided in Section 8 hereof, no adjustment to the Options shall be made for dividends or other rights for which the record date occurs prior to the date shares are issued under Section 5.9.

6.         Restricted Stock Units 

6.1       Grant of Restricted Stock Unit.  The Committee may grant Restricted Stock Units pursuant to this Plan.  Each Grant of Restricted Stock Units shall be evidenced by a Restricted Stock Unit Agreement containing such restrictions, terms and conditions as the Committee deems appropriate, provided that such restrictions, terms and conditions are not inconsistent with this Section 6.  

6.2       Vesting Date of Restricted Stock Units.  Each Restricted Stock Unit Agreement shall indicate the date or conditions, including the achievement of certain performance objectives, under which such Restricted Stock Units shall become vested.  

6.3       Limitation of Transfer of Restricted Stock Units.  A Restricted Stock Unit shall not be Transferable under any circumstances and no transfer of a Participant’s rights with respect to such Restricted Stock Unit, whether voluntary or involuntary, by operation of law or otherwise, shall vest in the Transferee any interest or right in or with respect to such Restricted Stock Unit, but immediately upon any attempt to Transfer such Restricted Stock Unit, such Restricted Stock Unit, and all of the rights related thereto, shall be cancelled and shall be forfeited by the Participant and the Transfer shall be of no force or effect.  

6.4       Issuance of Common Stock.  As soon as practical after the time stated in the Restricted Stock Unit Agreement, shares of Common Stock equal to the number of vested Restricted Stock Units reflected in the applicable Restricted Stock Unit Agreement shall be distributed to the Participant (or the beneficiary(ies) or personal representative of a deceased Participant).  Distributions shall be made in shares of Common Stock, with fractional shares rounded up to the nearest whole share.  

6

6.5       Termination of Restricted Stock Units.  The Committee may, at any time, in its absolute discretion, terminate any Restricted Stock Unit Award then outstanding, whether vested or not, provided, however, that the Company, in full consideration of such termination shall pay with respect to each Restricted Stock Unit, whether or not vested on the date of such termination, an amount equal to the Fair Market Value of a share of Common Stock determined as of the Valuation Date coincident with or next succeeding the date of termination.  Such payment shall be made as soon as practicable after the payment amounts are determined.  Notwithstanding the foregoing, no action will be taken pursuant to this Section 6.5 that will result in a violation of Code Section 409A and the regulations thereunder.

6.6       Rights as Shareholders.  A Participant will not have any stockholder rights, such as rights to vote or to receive dividends or other distributions, with respect to any Restricted Stock Units.  A Participant will have only adjustment rights provided in this Plan and the cash dividend equivalent rights, if any, provided in the Restricted Stock Unit Agreement.  

7.         Termination of Employment 

7.1       Expiration of Options.  With respect to each Participant, such Participant’s Option(s), or portion thereof, which have not become exercisable shall expire on the date such Participant’s Employment is terminated for any reason unless otherwise specified in the Stock Option Grant Agreement.  With respect to each Participant, each Participant’s Option(s), or any portion thereof, which have become exercisable on the date such Participant’s Employment is terminated shall expire on the earlier of (i) the commencement of business on the date the Participant’s Employment is terminated for Cause; (ii) 90 days after the date the Participant’s Employment is terminated for any reason other than Cause, death or Disability; (iii) one year after the date of the Participant’s Employment is terminated by reason of the Participant’s death; (iv) one year after the date the Participant’s Employment is terminated by reason of Disability, provided, however, that if during such one-year period following the termination of the Participant’s Employment by reason of Disability the Participant dies, the Participant’s legal representative or beneficiary may exercise the Participant’s Option(s), or any portion thereof, which have become exercisable on the date of the Participant’s Employment is terminated for a period of one year from the date of the Participant’s death; or (iv) the 10th anniversary of the Grant Date for such Option(s).  Notwithstanding the foregoing, the Committee may specify in the Stock Option Grant Agreement a different expiration date or period for any Option granted hereunder, and such expiration date or period shall supersede the foregoing expiration period.  

7.2       Expiration of Restricted Stock Units.  With respect to each Participant, such Participant’s Restricted Stock Units that have not become vested on the date such Participant’s Employment is terminated for any reason shall be forfeited unless otherwise specified in the Restricted Stock Unit Agreement.  

8.         Adjustment Upon Changes in Company Stock 

8.1       Increase or Decrease in Issued Shares Without Consideration.  Subject to any required action by the stockholders of the Company, in the event of any increase or decrease in the number of issued shares of Common Stock resulting from a subdivision or consolidation of shares of Common Stock or the payment of an extraordinary stock dividend (but only on the shares of Common Stock), or 
 any other increase or decrease in the number of such shares effected without receipt of consideration by the Company, the Committee shall make such adjustments with respect to the number of shares of Common Stock subject to the Awards and/or the exercise price per share of Common Stock as the Committee may consider appropriate to prevent the enlargement or dilution of rights.  

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8.2       Certain Mergers.  Subject to any required action by the stockholders of the Company, in the event that the Company shall be the surviving corporation in any merger or consolidation (except a merger or consolidation as a result of which the holders of shares of Common Stock receive only securities of another corporation), the Awards outstanding on the date of such merger or consolidation shall pertain to and apply to the securities that a holder of the number of shares of Common Stock subject to any such Award would have received in such merger or consolidation (it being understood that if, in connection with such transaction, the stockholders of the Company retain their shares of Common Stock and are not entitled to any additional or other consideration, the Awards shall not be affected by such transaction).  

8.3       Certain Other Transactions.  In the event of (i) a dissolution or liquidation of the Company, (ii) a sale of all or substantially all of the Company’s assets, (iii) a merger or consolidation involving the Company in which the Company is not the surviving corporation or (iv) a merger or consolidation involving the Company in which the Company is the surviving corporation but the holders of shares of Common Stock receive securities of another corporation and/or other property, including cash, the Committee shall, in its absolute discretion, have the power to: 

                        (A)       provide for the exchange of any Award outstanding immediately prior to such event (whether or not then exercisable) for an award with respect to, as appropriate, some or all of the property for which the stock underlying such Award is exchanged and, incident thereto, make an equitable adjustment, as determined by the Committee, in the exercise price of the Options, if applicable, or the number of shares or amount of property subject to the Award or, if appropriate, provide for a cash payment to the Participants in partial consideration for the exchange of the Awards as the Committee may consider appropriate to prevent dilution or enlargement of rights; 

                        (B)       cancel, effective immediately prior to the occurrence of such event, any Award outstanding immediately prior to such event (whether or not then exercisable or vested), and, in full consideration of such cancellation, pay to the Participant to whom such Award was granted an amount in cash, for each share of Common Stock subject to such Award, equal to: (x) with respect to an Option, the excess of (1) the value, as determined by the Committee in its absolute discretion, of securities and property (including cash) received by the holder of a share of Common Stock as a result of such event over (2) the Exercise Price of such Option; and (y) with respect to a Restricted Stock Unit, the value, as determined by the Committee in its absolute discretion, of the securities and property (including cash) received by the holder of a share of Common Stock as a result of such event, or 

                        (C)       provide for any combination of (A) or (B).  

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8.4       Other Changes.  In the event of any change in the capitalization of the Company or a corporate change other than those specifically referred to in Sections 8.1, 8.2 or 8.3 hereof, the Committee shall, in its absolute discretion, make such adjustments in the number and class of shares subject to Awards outstanding on the date on which such change occurs and, if applicable, in the per-share exercise price of each such Option, as the Committee may, in its absolute discretion, consider appropriate to prevent dilution or enlargement of rights.  

8.5       No Other Rights.  Except as expressly provided in this Plan or the Award Agreements evidencing the Awards, the Participants shall not have any rights by reason of (i) any subdivision or consolidation of shares of Common Stock or shares of stock of any class, (ii) the payment of any dividend, any increase or decrease in the number of shares of Common Stock, or (iii) shares of stock of any class or any dissolution, liquidation, merger or consolidation of the Company or any other corporation.  Except as expressly provided in this Plan or the Award Agreements evidencing the Awards, no issuance by the Company of shares of Common Stock or shares of stock of any class, or securities convertible into shares of Common Stock or shares of stock of any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number of shares of Common Stock subject to an Award or, if applicable, the exercise price of any Option.  

9.         Withholding Taxes 

9.1       Cash Remittance.  Whenever shares of Common Stock are to be issued upon the exercise of an Option or the time specified in a Restricted Stock Unit Agreement, the Company shall have the right to require the Participant to remit to the Company in cash an amount sufficient to satisfy federal, state, local and foreign withholding tax requirements, if any, attributable to such exercise, grant or lapse prior to the issuance of any shares or the effectiveness of the lapse of such restrictions.  Without limitation on the foregoing, the Company shall have the right to require the Participant to remit to the Company or any of its Affiliates in cash an amount sufficient to satisfy any applicable tax liability, including, without limitation, that if the Company or any of its Affiliates is liable to account for or deduct any tax, national insurance or other fiscal impositions or duties payable as a result of the exercise of the Option or the issue or transfer of shares of Common Stock from the salary or other earnings of the Participant in any relevant payment period and such salary or earnings are insufficient to meet the liability of the Company or any of its Affiliates, then the Company shall have the right to require the Participant to remit to the Company or any of its Affiliates in cash an amount sufficient to satisfy this liability.  

9.2       Stock Remittance.  At the election of the Participant, subject to the approval of the Committee, when shares of Common Stock are to be issued upon the exercise of an Option or the time specified in a Restricted Stock Unit Agreement, the Participant may tender to the Company a number of shares of Common Stock owned by the Participant having a Fair Market Value at the tender date determined by the Committee to be sufficient to satisfy the federal, state and local withholding tax requirements, if any, attributable to such exercise or grant but not greater than such withholding obligations.  Such election shall satisfy the Participant’s obligations under Section 9.1 hereof, if any.  

9.3       Stock Withholding.  At the election of the Participant, subject to the approval of the Committee, when shares of Common Stock are to be issued upon exercise of an Option or the time specified in a Restricted Stock Unit Agreement, the Company shall withhold a number of such 
 shares having a Fair Market Value at the exercise date determined by the Committee to be sufficient to satisfy the federal, state and local withholding tax requirements, if any, attributable to such exercise or grant but not greater than such withholding obligations.  Such election shall satisfy the Participant’s obligations under Section 9.1 hereof, if any.  

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10.        Securities Matters

10.1     Registration.  The Company will prepare and file, within two (2) Business Days of the closing date of the Target Merger, with the SEC a registration statement on Form S-8 covering the shares of Common Stock to be issued hereunder.  Notwithstanding anything hereof to the contrary, the Company shall not be obligated to cause to be issued or delivered any certificates evidencing shares of Common Stock pursuant to this Plan unless and until the Company is advised by its counsel that the issuance and delivery of such certificates is in compliance with all applicable laws, regulations of governmental authority and the requirements of any securities exchange on which shares of Common Stock are traded.  The Committee may require, as a condition to the issuance and delivery of certificates evidencing shares of Common Stock pursuant to the terms hereof, that the recipient of such shares make such covenants, agreements and representations, and that such certificates bear such legends, as the Committee deems necessary or advisable.  

10.2     Effectiveness of Option Exercise or Award.  With respect to an Option, the exercise of such Option granted hereunder shall only be effective at such time as counsel to the Company shall have determined that the issuance and delivery of shares of Common Stock pursuant to such exercise is in compliance with all applicable laws, regulations of governmental authority and the requirements of any securities exchange on which shares of Common Stock are traded.  The Company may, in its sole discretion, defer the effectiveness of an exercise of an Option hereunder or the issuance or transfer of shares of Common Stock pursuant to any Award pending or to ensure compliance under federal or state securities laws.  The Company shall inform the Participant in writing of its decision to defer the effectiveness of the exercise of an Option or the issuance or transfer of shares of Common Stock pursuant to any Award.  During the period that the effectiveness of the exercise of an Option has been deferred, the Participant may, by written notice, withdraw such exercise and obtain the refund of any amount paid with respect thereto.  

11.        Effective Date; Plan Term; Amendment of this Plan; Termination of this Plan 

11.1     Effective Date.  The Effective Date of the Plan shall be the date of adoption of the Plan by the Board.  

11.2     Plan Term.  The Committee shall not grant any Awards under this Plan after the Grant Date.  All Awards which remain outstanding after such Grant Date shall continue to be governed by the Plan and the function of the Committee will be limited to supervising the administration of Awards previously granted.  

11.3     Amendment of this Plan.  The Committee may, in its absolute discretion, from time to time revise or amend this Plan, provided, however, that any such amendment shall not impair or adversely affect the Participants’ rights under any outstanding Award without such Participant’s written consent.  

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11.4     Termination of this Plan.  The Committee may at any time, in its absolute discretion, suspend or terminate this Plan.  No awards may be granted during any suspension of the Plan or after the Plan has been terminated.  The termination of the Plan shall not affect any Awards previously granted.  After the Plan terminates, the function of the Committee will be limited to supervising the administration of Awards previously granted.  

12.        Miscellaneous 

12.1     No Special Employment Rights.  Nothing contained in this Plan shall confer upon the Participants any right with respect to the continuation of their Employment or interfere in any way with the right of the Company or an Affiliate, subject to the terms of any separate employment agreements to the contrary, at any time to terminate such Employment or to increase or decrease the compensation of the Participants from the rate in existence at the time of the grant of any Award.  

12.2     Right of Offset.  If a Participant becomes entitled to a distribution of benefits under this Plan, and if at such time the Participant has any outstanding debt, obligation, or other liability representing an amount owing to the Company or any of its Affiliates, the Company, upon a determination by the Committee, and to the extent permitted by applicable law, may offset such amount so owing against the amount of benefits otherwise distributable.  Such determination shall be made by the Committee.  

12.3     No Obligation to Exercise an Option.  The grant to the Participants of the Options shall impose no obligation upon the Participants to exercise such Options.  

12.4     Notices.  All notices and other communications hereunder shall be in writing and shall be given and shall be deemed to have been duly given if delivered in person, by cable, telegram, telex or facsimile transmission, to the parties as follows: 

If to the Participant, to the Participant’s last known address.  

If to the Company: 

MEMC Electronic Materials, Inc.  

Attention: Vice-President, Human Resources 

501 Pearl Dr.  

St.  Peters, MO 63376 

or to such other address as any party may have furnished to the other in writing in accordance herewith, except that notices of change of address shall only be effective upon receipt.  

12.5     Descriptive Headings.  The headings in this Plan are for convenience of reference only and shall not limit or otherwise affect the meaning of the terms contained herein.  

12.6     Gender.  All references herein to the masculine gender shall include the feminine.  

12.7     Severability.  In the event that any one or more of the provisions, subdivisions, words, clauses, phrases or sentences contained herein, or the application thereof in any circumstances, is held 
 invalid, illegal or unenforceable in any respect for any reason, the validity, legality and enforceability of any such provision, subdivision, word, clause, phrase or sentence in every other respect and of the remaining provisions, subdivisions, words, clauses, phrases or sentences hereof shall not in any way be impaired, it being intended that all rights, powers and privileges of the Company and Participants shall be enforceable to the fullest extent permitted by law.  

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12.8     Governing Law.  This Plan shall be governed by, and construed and enforced in accordance with, the laws of the State of Delaware, without regard to the provisions governing conflict of laws.  

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The undersigned hereby certifies that the Board of Directors of the Company duly adopted this Plan on October 21, 2009.  

 

	
 

	
Name:

	
/s/ Bradley D.  Kohn

	
 

	
 

	
Bradley D.  Kohn,

	
 

	
Title:

	
Vice President, General Counsel and

Corporate Secretary

	
 

	
 

	
 

	
 

	
Date:

	
October 21, 2009

 

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