Document:

ex10-31.htm

                                          Exhibit
10.31

     

    

    

    EMPLOYMENT
AGREEMENT

    

    

                          This
Employment Agreement (this “Agreement”) is made
as of December 14, 2009, by and between First Solar, Inc., a Delaware
corporation having its principal office at 350 West Washington Street, Suite
600, Tempe, Arizona 85281 (hereinafter, “Employer”) and T.L. Kallenbach (hereinafter,
“Employee”).

    

    WITNESSETH:

    WHEREAS,
Employer and Employee wish to enter into an agreement relating to the employment
of Employee by Employer.

     

    NOW, THEREFORE, in consideration of the
foregoing premises, and the mutual covenants, terms and conditions set forth
herein, and intending to be legally bound hereby, Employer and Employee hereby
agree as follows:

    

    ARTICLE
I.  Employment

    

    1.1            Term; At-Will Nature of
Employment.  The term of this Agreement (the “Term”) shall commence
as of December 14,
2009 (the
“Start Date”)
and shall end on the date Employee’s employment with Employer terminates for any
reason.  As of the Start Date, Employer shall employ Employee as a
full-time, at-will employee, and Employee shall accept employment with Employer
as a full-time, at-will employee.  Employer or Employee may terminate
this Agreement at any time and for any reason, with or without cause and with or
without notice, subject to the provisions of this Agreement.

    

    1.2                      Position and Duties of
Employee.  Employer hereby employs Employee in the initial
capacity of Executive Vice
President, Marketing and Product Management for Employer and Employee hereby
accepts such position.  In this position, Employee initially shall
report to Employer’s Chief
Executive Officer (the “Supervisor”). Employee agrees to
diligently and faithfully perform such duties as may from time to time be
assigned to Employee by the Supervisor, consistent with Employee’s position with
Employer.  Employee recognizes the necessity for established policies
and procedures pertaining to Employer’s business operations, and Employer’s
right to change, revoke or supplement such policies and procedures at any time,
in Employer’s sole discretion.  Employee agrees to comply with such
policies and procedures, including those contained in any manuals or handbooks,
as may be amended from time to time in the sole discretion of
Employer.  Employee shall be based in Tempe, AZ but shall be required
to travel to such locations as shall be required to fulfill the responsibilities
of her position.

    

    1.3                      No Salary or Benefits
Continuation Beyond Termination.  Except as may be required by
applicable law or as otherwise specified in this Agreement, or the Change in
Control Severance Agreement between Employer and Employee dated as of the date
hereof or as may be amended from time to time (the “Change in Control
Agreement”), Employer shall not be liable to Employee for any salary or
benefits continuation beyond the date of Employee’s cessation of employment with
Employer.

    

    1.4                      Termination of
Employment.  Employee’s employment with Employer shall
terminate upon the earliest of:  (a) Employee’s death; (b) unless
waived by Employer, Employee’s “Disability”, (which
for purposes of this Agreement, shall mean either a physical or mental condition
(as determined by a qualified physician mutually agreeable to Employer and
Employee) which renders Employee unable, for a period of at least six (6)
months, effectively to perform the obligations, duties and responsibilities of
Employee’s employment with Employer); (c) the termination of Employee’s
employment by Employer for Cause (as hereinafter defined);  (d)
Employee’s resignation; and (e) the termination of Employee’s employment by
Employer without Cause.  As used herein, “Cause” shall mean
Employer’s good faith determination of:  (i) Employee’s
dishonest, fraudulent or illegal conduct relating to the business of Employer;
(ii) Employee’s willful breach or habitual neglect of Employee’s duties or
obligations in connection with Employee’s employment;  (iii)
Employee’s misappropriation of Employer funds; (iv) Employee’s conviction
of a felony or any other criminal offense involving fraud or dishonesty, whether
or not relating to the business of Employer or Employee’s employment with
Employer; (v) Employee’s excessive use of alcohol; (vi) Employee’s unlawful use
of controlled substances or other addictive behavior;
(vii)  Employee’s unethical business conduct; (viii) Employee’s
breach of any statutory or common law duty of loyalty to Employer; or
(ix) Employee’s material breach of this Agreement, the Non-Competition and
Non-Solicitation Agreement between Employer and Employee entered into on the
date hereof or as may be amended from time to time (the “Non-Competition
Agreement”), the Confidentiality and Intellectual Property Agreement
between Employer and Employee entered into on the date hereof or as may be
amended from time to time (the “Confidentiality
Agreement”) or the Change in Control Agreement.  Upon
termination of Employee’s employment with Employer for any reason, Employee will
promptly return to Employer all materials in any form acquired by Employee as a
result of such employment with Employer, and all property of
Employer.

    

    1.5                      Severance Payments and
Vacation Pay.

    

                          (a) Vacation Pay in the Event of
a Termination of Employment.  In
the event of the termination of Employee’s employment with Employer for any
reason, Employee shall be entitled to receive, in addition to the Severance
Payments described in Section 1.5(b) below, if any, the dollar value of any
earned but unused (and unforfeited) vacation.  Such
dollar value shall be paid to Employee within fifteen (15) days following the
date of termination of employment.

    

                          (b)           Severance Payments in the
Case of a Termination Without Cause.

    

    (i)  Severance
Payments.  If Employee’s employment is terminated by Employer
without Cause then, subject to (A) the Change in Control Agreement, (B)
Employee’s satisfaction of the Release Condition described in Section 1.5(b)(ii)
below, and (C) Employee’s mitigation obligation described in Section 1.5(b)(iii)
below, Employee shall be entitled to continuation of Employee’s Base Salary (as
defined in Section 2.2) (such salary continuation, the “Severance Payments”)
for a period of 12 months (which period shall commence on the thirty-sixth
(36th) day
following the date employment terminates) in accordance with Employer’s regular
payroll practices and procedures.

    

    (ii)  Release
Condition.  Notwithstanding anything to the contrary herein, no
Severance Payments shall be due or made to Employee hereunder unless (i)
Employee shall have executed and delivered a general release in favor of
Employer and its affiliates, (which release shall be submitted to Employee for
her review by the date of Employee’s termination of employment (or shortly
thereafter), be substantially in the form of the Separation Agreement and
Release attached hereto as Exhibit
A and otherwise be satisfactory to Employer) and (ii) the Release
Effective Date shall have occurred on or before the thirty-sixth (36th) day
following the date employment terminates.  The “Release Effective
Date” shall be the date the general release becomes effective and
irrevocable.

    

                          (c)  Medical
Insurance.  If Employee’s employment is terminated by Employer
without Cause, Employer will provide or pay the cost of continuing the medical
coverage provided by Employer to Employee and her dependents during her
employment at the same or a comparable coverage level, for a period beginning on
the date of termination and ending on the earlier of (i) the date that is twelve
(12) months following such termination and (ii) the date that Employee is
covered under a medical benefits plan of a subsequent
employer.  Employee agrees to make a timely COBRA election, to the
extent requested by Employer, to facilitate Employer’s provision of continuation
coverage.  Except as permitted by Section 409A (as defined below), the
continued benefits provided to Employee pursuant to this Section 1.5(c) during
any calendar year will not affect the continued benefits to be provided to
Employee pursuant to this Section 1.5(c) in any other calendar
year.

    

                          (d)  Equity Award
Vesting.

    

    (i) Vesting
Acceleration.  In the event of (A) the termination of
Employee’s employment with Employer due to Employee’s death, (B) the termination
of Employee’s employment with Employer due to Disability, or (C) the termination
of Employee’s employment by Employer without Cause, the Employee shall on the
date of such termination of employment immediately receive an additional twelve
(12) months’ vesting credit with respect to the stock options, stock
appreciation rights, restricted stock and other equity or equity-based
compensation of Employer granted to Employee in the course of her employment
with Employer.

    

    (ii)           Effect of
Vesting.  The shares of Employer underlying any restricted
stock units that become vested pursuant to this Section 1.5(d) shall be payable
on the vesting date.  Any of Employee’s stock options and stock
appreciation rights that become vested pursuant to this Section 1.5(d) shall be
exercisable immediately upon vesting.  Employee will have one (1) year
and ninety (90) days after termination of employment without Cause, death or
Disability to exercise any vested stock options or other equity compensation,
provided, that, if during such period Employee is under any trading restriction
due to a lockup agreement or closed trading window such period shall be tolled
during the period of such trading restriction, and provided, further, that in no
event shall any stock option or stock appreciation right continue to be
exercisable after the original expiration date of such stock option or stock
appreciation right.

    

    (iv)           Conflict with Award
Agreement.  In the event the terms of this Agreement are
contrary to or conflict with the terms of any document or agreement addressing
Employee’s stock options, restricted stock, restricted stock units or any other
equity compensation, the terms of this Agreement shall govern and
control.

    

    

    ARTICLE
II.  Compensation

    

    2.1                      Sign-On
Bonus.  Employer shall pay Employee $150,000 on the first pay
date following the Start Date as a one-time sign-on bonus.  If
Employee’s employment terminates for any reason, Employer shall have the
complete discretion to recoup the sign on bonus and Employee hereby agrees to
repay the sign on b.

    

    2.2                      Base
Salary.  Employee shall be compensated at an annual base salary
of $350,000 (the “Base
Salary”) while Employee is employed by Employer under this Agreement,
subject to such annual increases that Employer may, in its sole discretion,
determine to be appropriate.  Such Base Salary shall be paid in
accordance with Employer’s standard policies and shall be subject to applicable
tax withholding requirements.

    

    2.3                      Annual Bonus
Eligibility.  Employee shall be eligible to participate in
Employer’s annual bonus program under which Employee’s target bonus shall equal
sixty percent (60%) of
Employee’s Base Salary.  Payment of any bonus shall depend upon
individual and company performance, all as determined by Employer in its sole
discretion.  The terms of the annual bonus program shall be developed
by Employer and communicated to Employee as soon as practicable after the
beginning of each year.

    

    2.4                      Benefits;
Vacation.  Employee shall be eligible to receive all benefits
as are available to similarly situated employees of Employer generally, and any
other benefits that Employer may, in its sole discretion, elect to grant to
Employee from time to time.  In addition, Employee shall be entitled
to four (4) weeks paid vacation per year, which shall be pro-rated for the first
partial year of employment and shall accrue in accordance with Employer’s
policies applicable to similarly situated employees of Employer.

    

    2.5                      Reimbursement of Business
Expenses.  Employee may incur reasonable expenses in the course
of employment hereunder for which Employee shall be eligible for reimbursement
or advances in accordance with Employer’s standard policy therefor.

    

    2.6                      Equity
Grants.  Subject to approval of the Compensation Committee of
the Board and Employee’s execution of documents reasonably requested by the
Company in relation to your grant, Employer shall grant to Employee under
Employer’s 2006 Omnibus Incentive Compensation Plan a one-time hiring grant of a
number of restricted stock units valued at $2,100,000 on the date of grant,
which shall vest, contingent on continued employment, in accordance with the
terms of the restricted stock unit grant at the rate of 20%, 20%, 20% and 40% on
each of the anniversaries of the date of grant.   Subject to
approval of the Compensation Committee of the Board, Employee shall be eligible
for future equity grants and other long-term incentives.

    

    

    

    ARTICLE
III.  Absence of
Restrictions

    

    3.1                      Employee
hereby represents and warrants to Employer that Employee has full power,
authority and legal right to enter into this Agreement and to carry out all
obligations and duties hereunder and that the execution, delivery and
performance by Employee of this Agreement will not violate or conflict with, or
constitute a default under, any agreements or other understandings to which
Employee is a party or by which Employee may be bound or affected, including any
order, judgment or decree of any court or governmental
agency.  Employee further represents and warrants to Employer that
Employee is free to accept employment with Employer as contemplated herein and
that Employee has no prior or other obligations or commitments of any kind to
any person, firm, partnership, association, corporation, entity or business
organization that would in any way hinder or interfere with Employee’s
acceptance of, or the full performance of, Employee’s duties
hereunder.

    

    ARTICLE
IV.  Miscellaneous

    

    4.1                      Withholding.  Any
payments made under this Agreement shall be subject to applicable federal, state
and local tax reporting and withholding requirements.

    

    4.2                      Governing
Law.  This Agreement shall be governed by and construed and
enforced in accordance with the laws of the State of Delaware without reference
to the principles of conflicts of laws.  Any judicial action commenced
relating in any way to this Agreement including the enforcement, interpretation
or performance of this Agreement, shall be commenced and maintained in a court
of competent jurisdiction located in Maricopa County, Arizona.  In any
action to enforce this Agreement, the prevailing party shall be entitled to
recover its litigation costs, including its attorneys’ fees.  The
parties hereby waive and relinquish any right to a jury trial and agree that any
dispute shall be heard and resolved by a court and without a
jury.  The parties further agree that the dispute resolution,
including any discovery, shall be accelerated and expedited to the extent
possible.  Each party’s agreements in this Section 4.2 are made in
consideration of the other party’s agreements in this Section 4.2, as well as in
other portions of this Agreement.

    

    4.3                      No
Waiver.  The failure of Employer or Employee to insist in any
one or more instances upon performance of any terms, covenants and conditions of
this Agreement shall not be construed as a waiver or relinquishment of any
rights granted hereunder or of the future performance of any such terms,
covenants or conditions.

    

    4.4                      Notices.  All
notices, requests, demands and other communications hereunder shall be in
writing and shall be deemed to have been duly given if personally delivered,
delivered by facsimile transmission or by courier or mailed, registered or
certified mail, postage prepaid as follows:

    

               If
to
Employer:                 First
Solar, Inc.

                                                          350
West Washington Street

                  Suite
600

                                                          Tempe,
Arizona  85281

                 Attention:
Corporate Secretary

    

               If
to
Employee:               To
Employee’s then current address on file with Employer

                                                         

    

    Or at
such other address or addresses as any such party may have furnished to the
other party in writing in a manner provided in this Section 4.4.

    

    4.5                      Assignability and Binding
Effect.  This Agreement is for personal services and is
therefore not assignable by Employee.  This Agreement may be assigned
by Employer to any successor (whether direct or indirect, by purchase, merger,
consolidation or otherwise) to all or substantially all of the business or
assets of Employer.  This Agreement shall be binding upon and inure to
the benefit of the parties, their successors, assigns, heirs, executors and
legal representatives.  If there shall be a successor to Employer or
Employer shall assign this Agreement, then as used in this Agreement, (a) the
term “Employer” shall mean Employer as hereinbefore defined and any successor or
any permitted assignee, as applicable, to which this Agreement is assigned and
(b) the term “Board” shall mean the Board as hereinbefore defined and the board
of directors or equivalent governing body of any successor or any permitted
assignee, as applicable, to which this Agreement is assigned.

    

    4.6                      Entire
Agreement.  This Agreement, the Change in Control Agreement,
the Non-Competition Agreement and the Confidentiality Agreement set forth the
entire agreement between Employer and Employee regarding the terms of Employee’s
employment and supersede all prior agreements between Employer and Employee
covering the terms of Employee’s employment, including without limitation, the
Prior Agreement.  This Agreement may not be amended or modified except
in a written instrument signed by Employer and Employee identifying this
Agreement and stating the intention to amend or modify it.

    

    4.7                      Severability.  If it is determined by a
court of competent jurisdiction that any of the restrictions or language in this
Agreement are for any reason invalid or unenforceable, the parties desire and
agree that the court revise any such restrictions or language, including
reducing any time or geographic area, so as to render them valid and enforceable
to the fullest extent allowed by law.  If any restriction or language
in this Agreement is for any reason invalid or unenforceable and cannot by law
be revised so as to render it valid and enforceable, then the parties desire and
agree that the court strike only the invalid and unenforceable language and
enforce the balance of this Agreement to the fullest extent allowed by
law.  Employer and Employee agree that the invalidity or
unenforceability of any provision of this Agreement shall not affect the
remainder of this Agreement.

    

    4.8                      Construction.  As
used in this Agreement, words such as “herein,” “hereinafter,” “hereby” and
“hereunder,” and the words of like import refer to this Agreement, unless the
context requires otherwise.  The words “include,” “includes” and
“including” shall be deemed to be followed by the phrase “without
limitation”.

    

    4.9                      Survival.  The
rights and obligations of the parties under the provisions of this Agreement,
including Sections 1.5, this Article IV and Article V, shall survive and remain
binding and enforceable, notwithstanding the termination of Employee’s
employment for any reason, to the extent necessary to preserve the intended
benefits of such provisions.

    

    

    ARTICLE
V.  Section
409A

    

    5.1                      In
General.  It is intended that the provisions of this Agreement
comply with Section 409A of the Internal Revenue Code of 1986, as amended, and
the regulations thereunder as in effect from time to time (collectively, “Section 409A”), and
all provisions of this Agreement shall be construed and interpreted in a manner
consistent with the requirements for avoiding taxes or penalties under Section
409A.

    

    5.2                      No Alienation, Set-offs,
Etc.  Neither Employee nor any creditor or beneficiary of
Employee shall have the right to subject any deferred compensation (within the
meaning of Section 409A) payable under this Agreement or under any other plan,
policy, arrangement or agreement of or with Employer or any of its affiliates
(this Agreement and such other plans, policies, arrangements and agreements, the
“Employer
Plans”) to any anticipation, alienation, sale, transfer, assignment,
pledge, encumbrance, attachment or garnishment.  Except as permitted
under Section 409A, any deferred compensation (within the meaning of Section
409A) payable to or for the benefit of Employee under any Employer Plan may not
be reduced by, or offset against, any amount owing by Employee to Employer or
any of its affiliates.

    

    5.3                      Possible Six-Month
Delay.  If, at the time of Employee’s separation from service
(within the meaning of Section 409A), (a) Employee shall be a specified employee
(within the meaning of Section 409A and using the identification methodology
selected by Employer from time to time) and (b) Employer shall make a good faith
determination that an amount payable under an Employer Plan constitutes deferred
compensation (within the meaning of Section 409A) the payment of which is
required to be delayed pursuant to the six-month delay rule set forth in Section
409A in order to avoid taxes or penalties under Section 409A, then Employer (or
an affiliate thereof, as applicable) shall not pay such amount on the otherwise
scheduled payment date but shall instead accumulate such amount and pay it,
without interest, on the first day of the seventh month following such
separation from service.

    

    5.4                      Treatment of
Installments.  For purposes of Section 409A, each of the
installments of continued Base Salary referred to in Section 1.5(b) shall be
deemed to be a separate payment as permitted under Treas. Reg. Sec.
1.409A-2(b)(2)(iii).

    

    IN
WITNESS WHEREOF, Employer has caused this Agreement to be executed by one of its
duly authorized officers and Employee has individually executed this Agreement,
each intending to be legally bound, as of the date first above
written.

    

    

                                                                               EMPLOYEE:

    

                                                                               /s/ T.L.
Kallenbach

                                                                               T.L
Kallenbach

    

                                                                               EMPLOYER:

                                                                               First
Solar, Inc.

    

                                                                               By:
/s/ Carol
Campbell

    

                                                                               Name
Printed: Carol
Campbell

    

                                                                               Title:
EVP Human
Resources

    

    
      
        
          Kallenbach
Employment Agreement(12/14/09)

          

        

         

      

      
         

      

      
         

      

    

    Exhibit
A

     

    SEPARATION AGREEMENT AND
RELEASE

    

    

    I.  Release.  For
good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, T.L. Kallenbach (the “undersigned”), with the intention of binding
himself, his heirs, executors, administrators and assigns, does hereby release
and forever discharge First Solar, Inc., a Delaware corporation, and its present
and former officers, directors, executives, agents, employees, affiliated
companies, subsidiaries, successors, predecessors and assigns (collectively, the
“Released
Parties”), from any and all claims, actions, causes of action, demands,
rights, damages, debts, accounts, suits, expenses, attorneys’ fees and
liabilities of whatever kind or nature in law, equity, or otherwise, whether now
known or unknown (collectively, the “Claims”), which the
undersigned now has, owns or holds, or has at any time heretofore had, owned or
held against any Released Party, arising out of or in any way connected with the
undersigned’s employment relationship with the Company, its subsidiaries,
predecessors or affiliated entities (collectively, the “Company”), or the
termination thereof, under any Federal, state or local statute, rule, or
regulation, or principle of common, tort, contract or constitutional law,
including but not limited to, the Fair Labor Standards Act of 1938, as amended,
29 U.S.C. §§ 201 et seq., the Equal Pay Act of 1963, as amended 29 U.S.C.
§602(d), the Family and Medical Leave Act of 1993 (“FMLA”), as amended, 29
U.S.C. §§ 2601 et seq., Title VII of the Civil Rights Act of 1964, as amended,
42 U.S.C. §§ 2000e et seq., the Age Discrimination in Employment Act of 1967, as
amended, 29 U.S.C. §§ 621 et seq., the Americans with Disabilities Act of 1990,
as amended, 42 U.S.C. §§ 12101 et seq., the Worker Adjustment and Retraining
Notification Act of 1988, as amended, 29 U.S.C. §§ 2101 et seq., the Employee
Retirement Income Security Act of 1974, as amended, 29 U.S.C. §§ 1001 et seq.,
the Sarbanes-Oxley Act of 2002, as amended (particularly 18 U.S.C. § 1513(e)
prohibiting retaliation against whistleblowers), and any other equivalent or
similar Federal, state, or local statute; provided, however, that nothing herein
shall release the Company (a) from its obligations under that certain Employment
Agreement to which the undersigned is a party and pursuant to which this
Separation Agreement and Release is being executed and delivered, and the
Company’s letter to the undersigned regarding Employment Termination dated
November 2, 2009 (the “Separation Letter”), (b) from any claims by the
undersigned arising out of any director and officer indemnification or insurance
obligations in favor of the undersigned, (c) from any director and officer
indemnification obligations under the Company’s by-laws, and (d) from any claim
for benefits under the First Solar, Inc. 401(k) Plan.  The undersigned
understands that, as a result of executing this Separation Agreement and
Release, he will not have the right to assert that the Company or any other
Released Party unlawfully terminated his employment or violated any of his
rights in connection with his employment or otherwise.

     

    The
undersigned affirms that he has not filed or caused to be filed, and presently
is not a party to, any Claim, complaint or action against any Released Party in
any forum or form and that he knows of no facts which may lead to any Claim,
complaint or action being filed against any Released Party in any forum by the
undersigned or by any agency, group, or class persons.  The
undersigned further affirms that he has been paid and/or has received all leave
(paid or unpaid), compensation, wages, bonuses, commissions, and/or benefits to
which he may be entitled and that no other leave (paid or unpaid), compensation,
wages, bonuses, commissions and/or benefits are due to him from the Company and
its subsidiaries, except as specifically provided in this Separation Agreement
and Release and in the Separation Letter.  The undersigned furthermore
affirms that he has no known workplace injuries or occupational diseases and has
been provided and/or has not been denied any leave requested under the
FMLA.  If any agency or court assumes jurisdiction of any such Claim,
complaint or action against any Released Party on behalf of the undersigned, the
undersigned will request such agency or court to withdraw the
matter.

     

    The
undersigned further declares and represents that he has carefully read and fully
understands the terms of this Separation Agreement and Release and that he has
been advised and had the opportunity to seek the advice and assistance of
counsel with regard to this Separation Agreement and Release, that he may take
up to and including 21 days from receipt of this Separation Agreement and
Release, to consider whether to sign this Separation Agreement and Release, that
he may revoke this Separation Agreement and Release within seven calendar days
after signing it by delivering to the Company written notification of
revocation, and that he/she knowingly and voluntarily, of his/her own free will,
without any duress, being fully informed and after due deliberate action,
accepts the terms of and signs the same as his own free act.

     

    II.  Protected
Rights.  The Company and the undersigned agree that nothing in
this Separation Agreement and Release is intended to or shall be construed to
affect, limit or otherwise interfere with any non-waivable right of the
undersigned under any Federal, state or local law, including the right to file a
charge or participate in an investigation or proceeding conducted by the Equal
Employment Opportunity Commission (“EEOC”) or to exercise
any other right that cannot be waived under applicable law.  The
undersigned is releasing, however, his right to any monetary recovery or relief
should the EEOC or any other agency pursue Claims on his
behalf.  Further, should the EEOC or any other agency obtain monetary
relief on his behalf, the undersigned assigns to the Company all rights to such
relief.

     

    III.  Equitable
Remedies.  The undersigned acknowledges that a violation by the
undersigned of any of the covenants contained in this Agreement would cause
irreparable damage to the Company in an amount that would be material but not
readily ascertainable, and that any remedy at law (including the payment of
damages) would be inadequate.  Accordingly, the undersigned agrees
that, notwithstanding any provision of this Separation Agreement and Release to
the contrary, the Company shall be entitled (without the necessity of showing
economic loss or other actual damage) to injunctive relief (including temporary
restraining orders, preliminary injunctions and/or permanent injunctions) in any
court of competent jurisdiction for any actual or threatened breach of any of
the covenants set forth in this Agreement in addition to any other legal or
equitable remedies it may have.

     

    IV.  Return of
Property.  The undersigned shall return to the Company promptly
on or before [TERMINATION DATE], all property of the Company in the
undersigned’s possession or subject to the undersigned’s control, including
without limitation any laptop computers, keys, credit cards, cellular telephones
and files.  The undersigned shall not alter any of the Company’s
records or computer files in any way after [TERMINATION DATE].

     

    V.  Severability.  If
any term or provision of this Separation Agreement and Release is invalid,
illegal or incapable of being enforced by any applicable law or public policy,
all other conditions and provisions of this Separation Agreement and Release
shall nonetheless remain in full force and effect so long as the economic and
legal substance of the transactions contemplated by this Separation Agreement
and Release is not affected in any manner materially adverse to any
party.

     

    VI.  GOVERNING
LAW.  THIS
SEPARATION AGREEMENT AND RELEASE SHALL BE DEEMED TO BE MADE IN THE STATE OF
DELAWARE, AND THE VALIDITY, INTERPRETATION, CONSTRUCTION AND PERFORMANCE OF THIS
AGREEMENT IN ALL RESPECTS SHALL BE GOVERNED BY THE LAWS OF THE STATE OF DELAWARE
WITHOUT REGARD TO ITS PRINCIPLES OF CONFLICTS OF LAW.

     

    
      	
              FIRST
      SOLAR, INC.

            	
              EMPLOYEE

            
	 
      	
               

               

              T.L.
Kallenbach

            
	 
      	 
      
	 
      	
              Date:  _________________

            

    

    

    .

    
      
        
          Kallenbach
Sample Release
Agreement                                                                                                                                          (12/14/09)

          

        

         

      

      
         

        
        

      

      
         

      

    

    

    

    

     

    

    NON-COMPETITION AND
NON-SOLICITATION AGREEMENT

    

               In
consideration of Employee’s (as defined below) entering into at-will employment
with Employer (as defined below) or one of its subsidiary companies, the
compensation and benefits provided to me including those set forth in a separate
Employment Agreement, Change in Control Agreement and Confidentiality and
Intellectual Property Agreement (the “Confidentiality
Agreement”) and Employer’s agreement to provide Employee with access to
Employer’s confidential information, intellectual property and trade secrets,
access to its customers and other promises made below, Employee enters into the
following non-competition and non-solicitation agreement:

    

    This
Non-Competition and Non-Solicitation Agreement (“Agreement”) is
effective by and between T.L.
Kallenbach (“Employee”) and First
Solar, Inc. (“Employer”) as of
December 14,
2009.

    

    WHEREAS,
Employee desires to be employed by Employer and Employer has agreed to employ
Employee in the current position of Employee with Employer;

    

    WHEREAS,
because of the nature of Employee’s duties, in the performance of such duties,
Employee will have access to and will necessarily utilize sensitive, secret and
proprietary data and information, the value of which derives from its secrecy
from Employer’s competitors, which, like Employer, sell products and services
throughout the world;

    

    WHEREAS,
Employee and Employer acknowledge and agree that Employee’s conduct in the
manner prohibited by this Agreement during, or for the period specified in this
Agreement following the termination of, Employee’s employment with Employer,
would jeopardize Employer’s Confidential Information (as defined in the
Confidentiality Agreement) and the goodwill Employer has developed and generated
over a period of years, and would cause Employer to experience unfair
competition and immediate, irreparable harm; and

    

    WHEREAS,
in consideration of Employer’s hiring Employee, Employee therefore has agreed to
the terms of this Agreement, the Employment Agreement and the Confidentiality
Agreement, and specifically to the restrictions contained herein.

    

    Therefore,
Employee and Employer hereby agree as follows:

    

    THE
FOLLOWING ARE IMPORTANT RESTRICTIONS ON EMPLOYEE IMPOSED BY EMPLOYER AS A
CONDITION OF EMPLOYMENT.  ONCE EMPLOYEE SIGNS THIS AGREEMENT, IT IS
BINDING ON EMPLOYEE.  EMPLOYEE’S SIGNATURE ON THIS AGREEMENT SIGNIFIES
THAT EMPLOYEE (I) READ THESE RESTRICTIONS CAREFULLY BEFORE SIGNING THIS
AGREEMENT, (II) UNDERSTANDS THE AGREEMENT’S TERMS, AND (III) ASSENTS TO ABIDE BY
THESE RESTRICTIONS.

    

    1.           Nature
and Period of Restriction. At all times during
Employee’s employment and for a period of twelve months after the
termination of employment (for any reason, including discharge or resignation)
with Employer (the “Restricted Period”),
Employee agrees as follows:

    

    1.1.           Employee
agrees not to engage or assist, in any way or in any capacity, anywhere in the
Territory (as defined below), either directly or indirectly, (a) in the business
of the development, sale, marketing, manufacture or installation that would be
in direct competition with of any type of product sold, developed, marketed,
manufactured or installed by Employer during Employee’s employment with
Employer, including photovoltaic modules, or (b) in any other activity in direct
competition or that would be in direct competition with the business of Employer
as that business exists and is conducted (or with any business planned or
seriously considered, of which Employee has knowledge) during Employee’s
employment with Employer.  In addition and in particular, Employee
agrees not to sell, market, provide or distribute, or endeavor to sell, market,
provide or distribute, in any way, directly or indirectly, on behalf of Employee
or any other person or entity, any products or services competitive with those
of Employer to any person or entity which is or was an actual or prospective
customer of Employer at any time during Employee’s employment by
Employer.

    

    1.2.           “Territory” for
purposes of this Agreement means North America, South America, Australia, Europe
and Asia.

    

    1.3.           Employee
agrees not to solicit, recruit, hire, employ or attempt to hire or employ, or
assist any other person or entity in the recruitment or hiring of, any person
who is (or was) an employee of Employer, and agrees not to otherwise urge,
induce or seek to induce any person to terminate her employment with
Employer.

    

    1.4.           The
parties understand and agree that the restrictions set forth in the paragraphs
in this Section 1 also extend to Employee’s recommending or directing any such
actual or prospective customers to any other competitive concerns, or assisting
in any way any competitive concerns in soliciting or providing products or
services to such customers, whether or not Employee personally provides any
products or services directly to such customers.  For purposes of this
Agreement, a prospective customer is one that Employer solicited or with which
Employer otherwise sought to engage in a business transaction during the time
that Employee is or was employed by Employer.

    

    1.5.           Employee
and Employer acknowledge and agree that Employer has expended substantial
amounts of time, money and effort to develop business strategies, customer
relationships, employee relationships, trade secrets and goodwill and to build
an effective organization and that Employer has a legitimate business interest
and right in protecting those assets as well as any similar assets that Employer
may develop or obtain.  Employee and Employer acknowledge that
Employer is entitled to protect and preserve the going concern value of Employer
and its business and trade secrets to the extent permitted by
law.  Employee acknowledges and agrees the restrictions imposed upon
Employee under this Agreement are reasonable and necessary for the protection of
Employer’s legitimate interests, including Employer’s Confidential Information,
intellectual property, trade secrets and goodwill.  Employee and
Employer acknowledge that Employer is engaged in a highly competitive business,
that Employee is expected to serve a key role with Employer, that Employee will
have access to Employer’s Confidential Information, that Employer’s business and
customers and prospective customers are located around the world, and that
Employee could compete with Employer from virtually any location in the
world.  Employee acknowledges and agrees that the restrictions set
forth in this Agreement do not impose any substantial hardship on Employee and
that Employee will reasonably be able to earn a livelihood without violating any
provision of this Agreement.  Employee acknowledges and agrees that,
in addition to Employer’s agreement to hire her, part of the consideration for
the restrictions in this Section 1 consists of Employer’s agreement to make
severance payments as set forth in the separate Employment Agreement between
Employer and Employee.

    

               1.6.           Employee
agrees to comply with each of the restrictive covenants contained in this
Agreement in accordance with its terms, and Employee shall not, and hereby
agrees to waive and release any right or claim to, challenge the reasonableness,
validity or enforceability of any of the restrictive covenants contained in this
Agreement.

     

        2.           Notice by
Employee to Employer.  Prior to engaging in any employment or
business during the Restricted Period, Employee agrees to provide prior written
notice (by certified mail) to Employer in accordance with Section 6, stating the
description of the activities or position sought to be undertaken by Employee,
and to provide such further information as Employer may reasonably request in
connection therewith (including the location where the services would be
performed and the present or former customers or employees of Employer
anticipated to receive such products or services).  Employer shall be
free to object or not to object in its unfettered discretion, and the parties
agree that any actions taken or not taken by Employer with respect to any other
employees or former employees shall have no bearing whatsoever on Employer’s
decision or on any questions regarding the enforceability of any of these
restraints with respect to Employee.

     

        3.           Notice to
Subsequent Employer.  Prior to accepting employment with any
other person or entity during the Restricted Period, Employee shall provide such
prospective employer with written notice of the provisions of this Agreement,
with a copy of such notice delivered promptly to Employer in accordance with
Section 6.

    

               4.           Extension
of Non-Competition Period in the Event of Breach. It is agreed that the
Restricted Period shall be extended by an amount of time equal to the amount of
time during which Employee is in breach of any of the restrictive covenants set
forth above.

     

        5.           Judicial
Reformation to Render Agreement Enforceable. If it is determined by a
court of competent jurisdiction that any of the restrictions or language in this
Agreement are for any reason invalid or unenforceable, the parties desire and
agree that the court revise any such restrictions or language, including
reducing any time or geographic area, so as to render them valid and enforceable
to the fullest extent allowed by law.  If any restriction or language
in this Agreement is for any reason invalid or unenforceable and cannot by law
be revised so as to render it valid and enforceable, then the parties desire and
agree that the court strike only the invalid and unenforceable language and
enforce the balance of this Agreement to the fullest extent allowed by
law.  Employer and Employee agree that the invalidity or
unenforceability of any provision of this Agreement shall not affect the
remainder of this Agreement.

     

        6.           Notice.  All
documents, notices or other communications that are required or permitted to be
delivered or given under this Agreement shall be in writing and shall be deemed
to be duly delivered or given when received.

    

    
      	
              If
      to Employer:

            	
              First
      Solar, Inc.

              350
      West Washington Street

              Suite
      600

              Tempe,
      AZ  85281

              Attention:
      Corporate Secretary

               

            
	
              If
      to Employee:

            	
              To
      Employee’s then current address on file with
  Employer

            

    

     

    7.           Enforcement. Except as expressly
stated herein, the covenants contained in this Agreement shall be construed as
independent of any other provision or covenants of any other agreement between
Employer and Employee, and the existence of any claim or cause of action of
Employee against Employer, whether predicated on this Agreement or otherwise, or
the actions of Employer with respect to enforcement of similar restrictions as
to other employees, shall not constitute a defense to the enforcement by
Employer of such covenants.  Employee acknowledges and agrees that
Employer has invested great time, effort and expense in its business and
reputation, that the products and information of Employer are unique and
valuable, and that the services performed by Employee are unique and
extraordinary, and Employee agrees that Employer will suffer immediate,
irreparable harm and shall be entitled, upon a breach or a threatened breach of
this Agreement, to emergency, preliminary, and permanent injunctive relief
against such activities, without having to post any bond or other security, and
in addition to any other remedies available to Employer at law or
equity.  Any specific right or remedy set forth in this Agreement,
legal, equitable or otherwise, shall not be exclusive but shall be cumulative
upon all other rights and remedies allowed or by law, including the recovery of
money damages.  The failure of Employer to enforce any of the
provisions of this Agreement, or the provisions of any agreement with any other
Employee, shall not constitute a waiver or limit any of Employer’s
rights.

     

        8.           At-Will
Employment; Termination. This Agreement does not
alter the at-will nature of Employee’s employment by Employer, and Employee’s
employment may be terminated by either party, with or without notice and with or
without cause, at any time.  In addition to the foregoing provisions
of this Agreement, upon Employee’s termination, Employee shall cease all
identification of Employee with Employer and/or the business, products or
services of Employer, and the use of Employer’s name, trademarks, trade name or
fictitious name.  All provisions, obligations, and restrictions in
this Agreement shall survive termination of Employee’s employment with
Employer.

     

     

    9.           Choice of
Law, Choice of Forum.  This Agreement
shall be governed by and construed and enforced in accordance with the laws of
the State of Delaware, without reference to the principles of conflicts of
laws.  Any judicial action commenced relating in any way to this
Agreement including the enforcement, interpretation, or performance of this
Agreement, shall be commenced and maintained in a court of competent
jurisdiction located in Maricopa County, Arizona.  In any action to
enforce this Agreement, the prevailing party shall be entitled to recover its
litigation costs, including its attorneys’ fees.  The parties hereby
waive and relinquish any right to a jury trial and agree that any dispute shall
be heard and resolved by a court and without a jury.  The parties
further agree that the dispute resolution, including any discovery, shall be
accelerated and expedited to the extent possible.  Each party’s
agreements in this Section 9 are made in consideration of the other party’s
agreements in this Section 9, as well as in other portions of this
Agreement.

    

    
      	
               
      

            	
              10.

            	
              Entire
      Agreement, Modification and
Assignment.

            

    

     

        10.1.           This
Agreement, the Employment Agreement the Confidentiality Agreement and the Change
in Control Agreement comprise the entire agreement relating to the subject
matter hereof between the parties and supersede, cancel, and annul any and all
prior agreements or understandings between the parties concerning the subject
matter of the Agreement.

     

        10.2.           This
Agreement may not be modified orally but may only be modified in a writing
executed by both Employer and Employee.

     

        10.3.           This
Agreement shall inure to the benefit of Employer, its successors and assigns,
and may be assigned by Employer.  Employee’s rights and obligations
under this Agreement may not be assigned by Employee.

    

    
      	
               
      

            	
              11.

            	
              Construction.  As used in
      this Agreement, words such as “herein,”
  “hereinafter,”

            

    

    “hereby”
and “hereunder,” and the words of like import refer to this Agreement, unless
the context requires otherwise.  The words “include,” “includes” and
“including” shall be deemed to be followed by the phrase “without
limitation”.

     

        IN WITNESS
WHEREOF, the parties have executed this Agreement, effective as of the
day and year first written above.

    

    EMPLOYER:                                                                                             
EMPLOYEE:

    

    First
Solar, Inc.

    

    By:               /s/ Carol
Campbell                                                          / s/ T.L.
Kallenbach

    

    Its:              EVP Human
Resources                                                  Printed Name:T.L.
Kallenbach

    

    Printed
Name:     Carol
Campbell                                

    
      
        
          
            	
                     
      

                  	
                    Kallenbach
      Noncompetition/Nonsolicitation
  Agreement(12/14/09)

                  

          

          

        

         

      

      
         

      

      
         

      

    

     

    First
Solar, Inc.

    Confidentiality
and Intellectual Property Agreement

    

    
      	
              Employee:

            	
              T.L.
      Kallenbach

               

            
	
              Place
      of Signing:

            	
              ________________________________

               

               

              Date:
      December 14,
      2009____________

            	 
      

    

    

    

    In
consideration of my at-will employment with First Solar, Inc. or one of its
subsidiary companies (collectively, the “Company”), for the
compensation and benefits provided to me, and for the Company’s agreement to
provide me with access to experience, knowledge, and Confidential Information
(as defined below) in the course of such employment relating to the methods,
plans, and operations of the Company and its suppliers, clients, and customers I
enter into the following Confidentiality and Intellectual Property Agreement
(the “Agreement”) and agree
as follows:

     

               1.           Except
for any items I have identified and described in a writing given to the Company
and acknowledged in writing by an officer of the Company on or before the date
of this Agreement, which items are specifically excluded from the operation of
the applicable provisions hereof, I do not own, nor have any interest in, any
patents, patent applications, inventions, improvements, methods, discoveries,
designs, trade secrets, copyrights, and/or other patentable or proprietary
rights.

    

               2.           I
will promptly and fully disclose to the Company all developments, inventions,
ideas, methods, discoveries, designs, and innovations (collectively referred to
herein as “Developments”), whether
patentable or not, relating wholly or in part to my work for the Company or
resulting wholly or in part from my use of the Company’s materials or
facilities, which I may make or conceive, whether or not during working hours,
whether or not using the Company’s materials, whether or not on the Company
facilities, alone or with others, at any time during my employment or within
ninety (90) days after termination thereof, and I agree that all such
Developments shall be the exclusive property of the Company, and that I shall
have no proprietary, moral or shop rights in connection therewith.

    

               3.           I
will assign, and do hereby assign, to the Company or the Company’s designee, my
entire right, title and interest in and to all such Developments including all
trademarks, copyrights, moral rights and mask work rights in or relating to such
Developments, and any patent applications filed and patents granted thereon
including those in foreign countries; and I agree, both during my employment by
the Company and thereafter, to execute any patent or other papers deemed
necessary or appropriate by the Company for filing with the United States or any
other country covering such Developments as well as any papers that the Company
may consider necessary or helpful in obtaining or maintaining such patents
during the prosecution of patent applications thereon or during the conduct of
any interference, litigation, or any other matter in connection therewith, and
to transfer to the Company any such patents that may be issued in my
name.  If, for some reason, I am unable to execute such patent or
other papers, I hereby irrevocably designate and appoint the Company and its
designees and their duly authorized officers and agents, as the case may be, as
my agent and attorney in fact to act for and in my behalf and stead to execute
any documents and to do all other lawfully permitted acts in connection with the
foregoing.  I agree to cooperate with and assist the Company as
requested by the Company to provide documentation reflecting the Company’s sole
and complete ownership of the Developments.  All expenses incident to
the filing of such applications, the prosecution thereof and the conduct of any
such interference, litigation, or other matter will be borne by the
Company.  This Section 3 shall survive the termination of this
Agreement.

    

               4.           Subject
to Section 5 below, I will not, either during my employment with the Company or
at any time thereafter, use, disclose or authorize, or assist anyone else to
disclose or use or make known for anyone’s benefit, any information, knowledge
or data of the Company or any supplier, client, or customer of the Company in
any way acquired by me during or as a result of my employment with the Company,
whether before or after the date of this Agreement (hereinafter the
“Confidential Information”), publicly or outside the Company, its subsidiaries,
agents, employees, officers and directors.  Such Confidential
Information shall include the following:

    

    
      	 	
              (a)

            	
              Information
      of a business nature including financial information and information about
      sales, marketing, purchasing, prices, costs, suppliers and
      customers;

            

    

    

    
      	 	
              (b)

            	
              Information
      pertaining to future developments including research and development, new
      product ideas and developments, strategic plans, and future marketing and
      merchandising plans and ideas;

            

    

    

    
      	 	
              (c)

            	
              Information
      and material that relate to the Company’s manufacturing methods, machines,
      articles of manufacture, compositions, inventions, engineering services,
      technological developments, “know-how”, purchasing, accounting,
      merchandising and licensing;

            

    

    

    
      	 	
              (d)

            	
              Trade
      secrets of the Company, including information and material with respect to
      the design, construction, capacity or method of operation of the Company’s
      equipment or products and information regarding the Company’s customers
      and sales or marketing efforts and
strategies;

            

    

    

    
      	 	
              (e)

            	
              Software
      in various stages of development (source code, object code, documentation,
      diagrams, flow charts), designs, drawings, specifications, models, data
      and customer information; and

            

    

    

    
      	 	
              (f)

            	
              Any
      information of the type described above that the Company obtained from
      another party and that the Company treats as proprietary or designates as
      confidential, whether or not owned or developed by the
      Company.

            

    

    

               5.           It
is understood and agreed that the term “Confidential
Information” shall not include information that is generally available to
the public, other than through any act or omission on my part in breach of this
Agreement.

    

               6.           I
acknowledge that: (a) such Confidential Information derives its value to the
Company from the fact that it is maintained as confidential and secret and is
not readily available to the general public or the Company’s competitors; (b)
the Company undertakes great effort and sufficient measures to maintain the
confidentiality and secrecy of such information; and (c) such Confidential
Information is protected and covered by this Agreement regardless of whether or
not such Confidential Information is a “trade secret” under
applicable law.  I further acknowledge and agree that the obligations
and restrictions herein are reasonable and necessary to protect the Company’s
legitimate business interests, and that this Agreement does not impose an
unreasonable or undue burden on me and will not prevent me from earning a
livelihood subsequent to the termination of my employment with the
Company. I agree to comply with each of the restrictive covenants contained
in this Agreement in accordance with its terms, and will not, and I hereby agree
to waive and release any right or claim to, challenge the reasonableness,
validity or enforceability of any of the restrictive covenants contained in this
Agreement.

    

               7.           I
will deliver to the Company promptly upon request, and, in any event, on the
date of termination of my employment, all documents, copies thereof and other
materials in my possession, including any notes or memoranda prepared by me,
pertaining to the business of the Company, whether or not including any
Confidential Information, and thereafter will promptly deliver to the Company
any documents and copies thereof pertaining to the business of the Company that
come into my possession.

    

               8.           I
represent that I have no agreements with or obligations to others with respect
to any innovations, developments, or information that could conflict with any of
the foregoing.

    

               9.           If
this Agreement is
subject to any applicable local laws, and to the extent of inconsistency with
such applicable laws, this Agreement will be construed, to the extent possible,
in a manner that is consistent with such applicable laws.  The
invalidity or unenforceability of any provision of this Agreement, whether in
whole or in part, shall not in any way affect the validity and/or enforceability
of any of the other provisions of this Agreement.  Any invalid or
unenforceable provision or portion thereof shall be deemed severable to the
extent of any such invalidity or unenforceability.  The restrictions
contained in this Agreement are reasonable for the purpose of preserving for the
Company and its affiliates the proprietary rights, intangible business value and
Confidential Information of the Company and its affiliates.  If it is
determined by a court of competent jurisdiction that any of the restrictions or
language in this Agreement is for any reason invalid or unenforceable, the
parties desire and agree that the court revise any such restrictions or language
so as to render it valid and enforceable to the fullest extent allowed by
law.  If any restriction or language in this Agreement is for any
reason invalid or unenforceable and cannot by law be revised so as to render it
valid and enforceable, then the parties desire and agree that the court strike
only the invalid and unenforceable language and enforce the balance of this
Agreement to the fullest extent allowed by law.

    

               10.           I
agree that any breach or threatened breach by me of any of the provisions in
this Agreement cannot be remedied solely by the recovery of
damages.  I expressly agree that upon a threatened breach or violation
of any of such provisions, the Company, in addition to all other remedies, shall
be entitled as a matter of right, and without posting a bond or other security,
to emergency, preliminary, and permanent injunctive relief in any court of
competent jurisdiction.  Nothing herein, however, shall be construed
as prohibiting the Company from pursuing, in concert with an injunction or
otherwise, any other remedies available at law or in equity for such breach or
threatened breach, including the recovery of damages.

    

               11.           This
Agreement is made in consideration of my employment with the
Company.

    

               12.           Upon
termination of my employment with the Company, I shall, if requested by the
Company, reaffirm my recognition of the importance of maintaining the
confidentiality of the Company’s Confidential Information and reaffirm all of my
obligations set forth herein.  The provisions, obligations, and
restrictions in this Agreement shall survive the termination of my employment,
and will be binding on me whether or not the Company requests a
re-affirmation.

    

               13.           This
Agreement, my Employment Agreement with the Company (the “Employment
Agreement”), the Non-Competition Agreement (as defined in the Employment
Agreement) and the Change in Control Agreement (as defined in the Employment
Agreement) represent the full and complete understanding between me and the
Company with respect to the subject matter hereof and supersede all prior
representations and understandings, whether oral or written regarding such
subject matter.  This Agreement may not be changed, modified,
released, discharged, abandoned or otherwise terminated, in whole or in part,
except by an instrument in writing signed by both the Company and me. My
obligations under this Agreement shall be binding upon my heirs, executors,
administrators, or other legal representatives or assigns, and this Agreement
shall inure to the benefit of the Company, its successors, and
assigns.

    

    14.           This
Agreement shall be governed by and construed and enforced in accordance with the
laws of the State of Delaware without reference to principles of conflict of
laws.  Any judicial action commenced relating in any way to this
Agreement including the enforcement, interpretation, or performance of this
Agreement, shall be commenced and maintained in a court of competent
jurisdiction located in Maricopa County, Arizona.  In any action to
enforce this Agreement, the prevailing party shall be entitled to recover its
litigation costs, including its attorneys’ fees.  The parties hereby
waive and relinquish any right to a jury trial and agree that any dispute shall
be heard and resolved by a court and without a jury.  The parties
further agree that the dispute resolution, including any discovery, shall be
accelerated and expedited to the extent possible.  Each party’s
agreements in this Section 14 are made in consideration of the other party’s
agreements in this Section 14, as well as in other portions of this
Agreement.

    

    15.           As
used in this Agreement, words such as “herein,” “hereinafter,” “hereby” and
“hereunder,” and the words of like import refer to this Agreement, unless the
context requires otherwise.  The words “include,” “includes” and
“including” shall be deemed to be followed by the phrase “without
limitation”.

    

    

    
      	
              Signed:

            	
              /s/ T.L. Kallenbach

              Employee

              Print
      Name:  T.L. Kallenbach

               

            
	
              Agreed
      to by First Solar, Inc.

            
	 
      	
               

               

              By:  /s/ Carol Campbell

               

              Its:
      EVP Human Resourcesex10-32.htm

             Exhibit
10.32

    Amendment
to

    Employment
Agreement

    

    This Amendment is made effective as of
July 28, 2009 by and between First Solar, Inc. a Delaware corporation having its
principal office at 350 West Washington Street, Suite 600, Tempe, Arizona 85281
(hereinafter “Employer”) and Bruce Sohn (hereinafter “Employee”)

    

    WITNESSETH:

    

    WHEREAS,
Employer and Employee are party to an Employment Agreement dated as of November
3, 2008 (the “Employment Agreement”);

     

    WHEREAS,
at its meeting on July 28, 2009, the Compensation Committee of the Board of
Directors authorized an amendment to the Employment Agreement to provide for
100% vesting of the unvested portion of Employee’s new hire equity grant in the
event Employee’s employment terminates without “cause” (as defined in the
Employment Agreement);

     

    WHEREAS,
the parties wish to memorialize this action by amending the Employment Agreement
accordingly;

     

    NOW, THEREFORE, in consideration of the
foregoing premises, and the mutual covenants, terms and conditions set forth
herein, and intending to be legally bound hereby, Employer and Employee hereby
agree that the Employment Agreement is amended as provided herein.

    

    
      	
              1.

            	
              Section
      1.5(d) of the Employment Agreement is amended to read in its entirety as
      follows:

            

    

    

    (d)           Equity Award
Vesting.

    

    (i)           Vesting of Hiring Grant On
Termination without Cause.  If Employee’s employment is
terminated by Employer without Cause, the option to purchase 150,000 shares of
Employer’s common stock granted to Employee by Employer on March 21, 2007 (the
“Initial Equity Award”) shall become fully vested as of the effective date of
such termination, to the extent not then vested.

    

    (ii)           Other Equity
Awards.  In the event of (A) the termination of Employee’s
employment with Employer due to Employee’s death, (B) the termination of
Employee’s employment with Employer due to Disability, or (C) the termination of
Employee’s employment by Employer without Cause, then, except as otherwise
provided in Section 1.5(d)(i) with respect to the Initial Equity Award, Employee
shall on the date of such termination of employment immediately receive an
additional twelve (12) months’ vesting credit with respect to the stock options,
stock appreciation rights, restricted stock and other equity or equity-based
compensation of Employer granted to Employee in the course of his employment
with Employer (such other awards together with the Initial Equity Award,
collectively “Equity Awards”).

    

    (iii)           Effect of
Vesting.  The shares of Employer underlying any restricted
stock units that become vested pursuant to this Section 1.5(d) shall be payable
on the vesting date.  Any of Employee’s stock options and stock
appreciation rights that become vested pursuant to this Section 1.5(d) shall be
exercisable immediately upon vesting and any such stock options and stock
appreciation rights and any of Employee’s stock options and stock appreciation
rights that are otherwise vested and exercisable as of Employee’s termination of
employment shall remain exercisable for one (1) year and ninety (90) days
following Employee’s termination of employment (or such longer period as shall
be provided by the applicable award agreement), provided, that, if during such
period Employee is under any trading restriction due to a lockup agreement or
closed trading window such period shall be tolled during the period of such
trading restriction, and provided, further, that in no event shall any stock
option or stock appreciation right continue to be exercisable after the original
expiration date of such stock option or stock appreciation right.

    

    (iv)           Conflict with Award
Agreement.  If the terms of Section 1.5(d) of this Agreement
are more favorable to Employee than the terms of any document or agreement
addressing or governing the Equity Awards, the terms of this Agreement shall
apply except that no provision in this Agreement shall operate to extend the
term of any stock option or stock appreciation right beyond its original
expiration date.

    

    
      	
              2.

            	
              Except
      as amended above, the Employment Agreement shall remain in full force and
      effect.

            

    

    

    IN WITNESS WHEREOF, Employer has caused
this Agreement to be executed by one of its duly authorized officers and
Employee has individually executed this Agreement, each intending to be legally
bound, as of the date first above written.

    

    
      	
              EMPLOYER

            	
              EMPLOYEE

            
	
               

               

               

              /s/ Michael J.
      Ahearn

               

              Michael
      J. Ahearn

              Chief
      Executive Officer

              Chairman

            	
               

               

               

              /s/ Bruce Sohn

               

              Bruce
      Sohn

            
	 
      	 
      
	 
      	
              Date:  10-16-09

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00168-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00168-of-00352.parquet"}]]