Document:

exv10w18

EXHIBIT 10.18

March 29, 2010

Danielle Katcher

Craft Brewers Alliance, Inc.

929 North Russell Street

Portland, OR 97227

Dear Danielle:

     The purpose of this letter is to set forth our understanding about your employment as the Vice
President of Marketing of Craft Brewers Alliance, Inc. (the “Company”), effective April 1, 2010.
This letter supersedes and replaces any prior offer letter or other agreement regarding your
employment by the Company.

     Your employment is “at-will,” which means you or the Company may end the employment
relationship at any time. Our mutual agreement regarding your salary, severance, and other
benefits and obligations is set forth below.

Compensation and Benefits

     
Your annual base salary will initially be $150,000 (before standard tax withholdings
and other payroll deductions). Your base salary level will be reviewed annually for adjustment
beginning January 1, 2011, by the Compensation Committee. In addition, you are entitled to
participate in all of the Company’s employee benefit programs for which you are eligible, including
long-term incentive awards approved by the Compensation Committee for executive officers from time
to time.

     You will be eligible for a yearly bonus, such bonus to be approved by the Compensation
Committee. All or a portion of such bonus may be conditioned upon achieving certain performance
targets approved by the Company’s Compensation Committee or Board of Directors.

Severance

     In the event that your employment with the Company is terminated by the Company for any reason
other than “for cause” or by you due to “good reason,” the Company will continue to pay your
monthly base salary at the rate in effect on the date of termination in accordance with the Company’s normal
payroll schedule commencing on the day following termination and extending for a period (the “Severance Period”) equal to
two weeks for each full year of service you have accrued with the Company through the date of termination (including service with Widmer
Brothers Brewing Company and Craft Brands Alliance LLC prior to July 1, 2008); provided that in no event shall the Severance Period
be less than six months or more than 12 months.

     In addition, the Company will promptly (in no event later than March 15 of the calendar year
after the year in which your employment terminated) make a cash payment to you in an amount equal
to 100% of your unused Paid Time Off (“PTO”) hours accrued through the date of termination in
accordance with the provisions of the Company’s PTO Plan
then in effect.

 

 

     If you become entitled to severance benefits under this agreement, the Company will also
continue to provide you during the Severance Period the same health benefits as were being provided
to you at the time of termination; provided, however, that such benefits shall terminate in the
event you find new employment with comparable health coverage.

     For purposes of this letter, “for cause” means that you have engaged in conduct which has
substantially and adversely impaired the interests of the Company, or would be likely to do so if
you were to remain employed by the Company; you have engaged in fraud, dishonesty or self-dealing
relating to or arising out of your employment with the Company; you have violated any criminal law
relating to your employment or to the Company; you have engaged in conduct which constitutes a
material violation of a significant Company policy or the Company’s Code of Conduct and Ethics,
including, without limitation, violation of policies relating to discrimination, harassment, use of
drugs and alcohol, and workplace violence; or you have repeatedly refused to obey lawful directions
of the Company’s Board of Directors.

     For purposes of this letter, “good reason” means the occurrence of one or more of the
following events without your consent: (a) a material reduction in your authority, duties, or
responsibilities as the Company’s Vice President of Marketing; (b) a material reduction in the
authority, duties, or responsibilities of the person or persons to whom you report (including, if
applicable, a requirement that you report to a Company officer or employee instead of reporting
directly to the Company’s Board of Directors); or (c) a relocation of your principal office to a
location that is more than 100 miles from Portland, Oregon; provided, however, that
“good reason” shall only be deemed to have occurred if: (i) within 90 days after the initial
existence of the circumstances constituting “good reason,” you provide the Company with a written
notice describing such circumstances, (ii) the Company fails to cure the circumstances within 30
days after the Company receives your notice, and (iii) you terminate your employment with the
Company and all the members of the Company’s controlled group within 90 days of the date of your
notice.

     For purposes of this letter, a termination of your employment will be deemed to occur only
when or if there has been a “separation from service” as such term is defined in Treasury
Regulation Section 1.409A-1(h).

     If, during the Severance Period, you become employed or associated with a brewing or other
company that the Company determines, in its reasonable discretion, is
a competitor of the Company or the portion of Anheuser-Busch,
Inc.’s business relating to alcoholic beverages, your severance payments and benefits under this letter agreement will
terminate as of the effective date of such employment or association.

     The total amount of severance payments and other benefits (except benefits described in
Treasury Regulation Sections 1.409A-1(a)(5) or 1.409A-(b)(9)(v)) provided to you pursuant to this
letter agreement shall not exceed two times the lesser of (i) the sum of your annualized
compensation based upon your annual salary in the year preceding the year in which your employment
is terminated (adjusted for any increase during that year that was

 

 

expected to continue indefinitely if your employment had not terminated) or (ii) the
applicable dollar limit under Section 401(a)(17) of the Internal Revenue Code for the calendar year
in which your employment is terminated.

     The severance payments and other benefits under this letter are intended to be exempt from the
requirements of Section 409A of the Internal Revenue Code by reason of all payments under this
Agreement being either “short-term deferrals” within the meaning of Treasury Regulation Section
1.409A-1(b)(4) or separation pay due to involuntary separation from service under Treasury
Regulation Section 1.409A-1(b)(9)(iii). All provisions of this letter shall be interpreted in a
manner consistent with preserving these exemptions.

     The Company will require you to execute an appropriate general release of claims that you may
have relating to your employment at the Company and termination of your employment as a condition
to your receipt of severance payments or other benefits other than those required by law or
provided to employees generally. If such general release of claims is not executed within 30 days
following the date your employment with the Company is terminated, all severance payments and other
benefits payable after such 30-day period will be forfeited, and you agree to repay any severance
payments, and the value of any other benefits, paid to you during such period.

Code of Conduct

     By your signature below, you agree to comply with the Company’s Code of Conduct and Ethics as
in effect from time to time, and to be subject to the Company’s policies and procedures in effect
from time to time for senior executives of the Company.

     We appreciate your continued efforts on behalf of the Company, and look forward to having you
as a member of our team for years to come.

     Sincerely,

/s/ Terry Michaelson

     Terry Michaelson

     Chief Executive Officer

Acknowledged and Agreed:

	 	 	 
	/s/ Danielle Katcher
 

      Danielle Katcher

	 	 

Date: March 29, 2010exv10w23

EXHIBIT 10.23

SUMMARY OF

COMPENSATION ARRANGEMENTS FOR NON-EMPLOYEE DIRECTORS

     Non-employee directors of Craft Brewers Alliance, Inc. currently receive stock-based and cash
compensation for their service on the board of directors as follows:

Stock-based Compensation:

     Each non-employee director receives an annual grant of 3,000 shares of common stock of Craft
Brewers Alliance, Inc. upon election to the board of directors at the Annual Meeting of
Shareholders.

Cash Compensation:

     Each non-employee director is entitled to receive an annual cash retainer of $20,000, paid
quarterly.

     The Chair of the Audit Committee is entitled to receive additional annual compensation of
$15,000, while each other member of the Audit Committee is entitled to receive additional annual
compensation of $4,000. The Chairs of each of the Nominating and Governance, Compensation, and
Strategic Planning Committees are entitled to receive additional annual compensation of $10,000,
while all other committee members are entitled to receive additional annual compensation of $2,000
for each committee position. Committee compensation is paid quarterly.exv10w1

EXHIBIT 10.1

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

Share Purchase Agreement

between

Q-Cells SE

and

Renewable Energy Corporation ASA

and

Evergreen Solar, Inc.

and

Rolling Hills S.à r.l.

dated 22 March 2010

regarding the sale and purchase of Sovello AG

 

 

			
	
	 	2

Table of Contents

	 	 	 	 	 	 	 	 	 
	Section 1.
	 	Definitions

	 	 	5	 
	Section 2.
	 	Sale and Purchase of the Sold Shares

	 	 	10	 
	 	2.1	 	 	Agreement to Sell and Purchase of Sold Shares

	 	 	10	 
	 	2.2	 	 	Transfer of Sold Shares

	 	 	10	 
	 	2.3	 	 	Rights and Obligations Pertaining to Sold Shares

	 	 	10	 
	 	2.4	 	 	Consents and Waiver of Pre-emptive Rights

	 	 	10	 
	Section 3.
	 	Purchase Price, Payments, Settlement of Intercompany Claims

	 	 	11	 
	 	3.1	 	 	Purchase Price

	 	 	11	 
	 	3.2	 	 	Settlement of Intercompany Claims

	 	 	11	 
	 	3.3	 	 	Silicon Supply Agreement

	 	 	11	 
	 	3.4	 	 	Exchange Rate

	 	 	11	 
	Section 4.
	 	Closing

	 	 	12	 
	 	4.1	 	 	Time and Place of Closing

	 	 	12	 
	 	4.2	 	 	Closing Conditions

	 	 	12	 
	 	4.3	 	 	Right to Rescind

	 	 	14	 
	 	4.4	 	 	Closing Actions

	 	 	15	 
	Section 5.
	 	Sellers’ Guarantees

	 	 	16	 
	 	5.1	 	 	Legal Title in the Sold Shares

	 	 	16	 
	 	5.2	 	 	Corporate

	 	 	18	 
	 	5.3	 	 	No Finder’s Fee and No Transaction Costs

	 	 	19	 
	 	5.4	 	 	Financial Statements

	 	 	19	 
	 	5.5	 	 	Real Estate

	 	 	19	 
	 	5.6	 	 	Permits and Legal Compliance

	 	 	20	 
	 	5.7	 	 	No Unlawful Business Practices

	 	 	20	 
	 	5.8	 	 	Proceedings

	 	 	20	 
	 	5.9	 	 	Employment Matters

	 	 	20	 
	 	5.10	 	 	Environmental Matters

	 	 	20	 
	 	5.11	 	 	Subsidies

	 	 	21	 
	 	5.12	 	 	No other Representations and Warranties

	 	 	21	 
	Section 6.
	 	Covenants

	 	 	21	 
	 	6.1	 	 	Conduct of Business prior to Closing

	 	 	21	 
	 	6.2	 	 	Cooperation

	 	 	22	 
	 	6.3	 	 	Access to Information

	 	 	22	 

 

 

			
	
	 	3

	 	 	 	 	 	 	 	 	 
	Section 7.
	 	Indemnification by Sellers

	 	 	23	 
	 	7.1	 	 	Indemnification

	 	 	23	 
	 	7.2	 	 	Notification of Damage Claims and Remedial Measures;
Cooperation in Tax Matters

	 	 	24	 
	 	7.3	 	 	Limitations on Liability

	 	 	26	 
	 	7.4	 	 	Statute of Limitation

	 	 	27	 
	 	7.5	 	 	No Additional Rights or Remedies

	 	 	27	 
	Section 8.
	 	Representations of and Indemnity from Purchaser

	 	 	28	 
	 	8.1	 	 	Representations

	 	 	28	 
	 	8.2	 	 	Indemnity in Case of Breach of Representation

	 	 	28	 
	Section 9.
	 	regulatory Requirements

	 	 	29	 
	Section 10.
	 	Claims against Sellers

	 	 	30	 
	Section 11.
	 	Balancing of Post-Closing Payments

	 	 	31	 
	Section 12.
	 	 Public Announcements, Disclosure, Confidentiality

	 	 	32	 
	Section 13.
	 	 Miscellaneous

	 	 	33	 
	 	13.1	 	 	Interest

	 	 	33	 
	 	13.2	 	 	Costs and Expenses

	 	 	33	 
	 	13.3	 	 	Notices

	 	 	33	 
	 	13.4	 	 	Entire Agreement; Amendments and Waivers

	 	 	33	 
	 	13.5	 	 	Assignments, Third Parties

	 	 	34	 
	 	13.6	 	 	Set-off and Retention

	 	 	34	 
	 	13.7	 	 	Further Assurances

	 	 	34	 
	 	13.8	 	 	Several Debtors

	 	 	34	 
	 	13.9	 	 	Designee

	 	 	34	 
	 	13.10	 	 	Severability

	 	 	35	 
	 	13.11	 	 	Interpretation

	 	 	35	 
	Section 14.
	 	 Governing Law, Jurisdiction, Service of Process

	 	 	35	 
	 	14.1	 	 	Governing Law

	 	 	35	 
	 	14.2	 	 	Jurisdiction

	 	 	35	 
	 	14.3	 	 	Service of Process

	 	 	36	 

 

 

			
	
	 	4

This Share Purchase Agreement is entered into on this 22 day of March 2010, by and between

	(1)	 	Q-Cells SE, a societas europaea, registered in the commercial register of the local court of
Stendal under HRB 8150,

(hereinafter referred to as “Seller 1” or a “Seller”),

	 	 	Renewable Energy Corporation ASA, a public limited company incorporated under Norwegian law,
registered in Brønnøysund Register Centre under organization number 977258561,

(hereinafter referred to as “Seller 2” or a “Seller”),

	 	 	Evergreen Solar Inc., a Delaware corporation incorporated under Delaware law, registered in
the Delaware division of corporations under file number 2426798,

(hereinafter referred to as “Seller 3” or a “Seller” and together with Seller 1 and Seller 2 as “Sellers”),

- on the one hand -

and

	(2)	 	Rolling Hills S.à r.l., a limited liability company incorporated under Luxembourg law
registered in the commercial register of the Grand Duchy of Luxemburg under B149256,

(hereinafter referred to as “Purchaser”)

 

 

			
	
	 	5

PREAMBLE

	(A)	 	WHEREAS, Sellers are the owners of 100% of the issued share capital of Sovello AG,
registered in the commercial register of Stendal under HRB 8253 (the “Company”). The Company
has a registered share capital of EUR 480,000 divided into 480,000 registered shares with no
par value (auf den Namen lautende Stückaktien). 160,000 of the shares are owned by Seller 1
(the “Seller 1 Shares”), 160,000 of the shares are owned by Seller 2 (the “Seller 2 Shares”),
and 160,000 of the shares are owned by Seller 3 (the “Seller 3 Shares”).
	 
	(B)	 	WHEREAS, Sellers intend to sell and transfer to Purchaser the Sold Shares (as defined below),
and Purchaser intends to acquire the Sold Shares (the sale, purchase and transfer of the Sold
Shares and the other transactions contemplated by this Agreement hereinafter the
“Transaction”).
	 
	(C)	 	WHEREAS, Seller 3 has entered as of the date of this Agreement with the Company into a term
sheet which is attached to this Agreement as Exhibit A on the new license agreements
regarding the Gemini- and Quad-technology (the “New License Agreements”). The New License
Agreements shall be entered into prior to Closing and shall become legally effective subject
to Closing.

NOW, THEREFORE, Sellers and Purchaser agree as follows:

SECTION 1. DEFINITIONS

Capitalized terms used in this Agreement shall have the meanings ascribed to them as follows:

	 	 	 
	“Affiliate”

	 	means any general or limited partnership,
corporation, business trust, limited liability
company, trust, association, civil law
partnership or other unincorporated organization,
or any other entity or individual, which is an
affiliate (verbundenes Unternehmen) within the
meaning of sections 15 et seqq. AktG or a
relative or an affiliated person (nahestehende
Person) within the meaning of section 15 German
Tax Code (Abgabenordnung) of the respective
Party.
	 
	 	 
	“Agreement”

	 	means this Share Purchase Agreement.
	 
	 	 
	“AktG”

	 	means the German Stock Corporation Act
(Aktiengesetz).
	 
	 	 
	“AWV”

	 	means the German Foreign Trade Act Implementation
Ordinance (Durchführungsverordnung zum
Außenwirtschaftsgesetz).
	 
	 	 
	“Bank Debt”

	 	means the amounts, including accrued interest thereon,

 

 

			
	
	 	6

	 	 	 
	 

	 	currently outstanding under the Loan
Agreement as of the date of this Agreement, as
set out in more detail in Exhibit B.
	 
	 	 
	“BGB”

	 	means the German Civil Code (Bürgerliches
Gesetzbuch).
	 
	 	 
	“Breach”

	 	has the meaning as defined in Section 7.1(a).
	 
	 	 
	“Business Day”

	 	means any day on which the commercial banks in
Frankfurt am Main, Germany, are open for regular
business transactions.
	 
	 	 
	“Business Plan”

	 	the business plan of the Company for the period
2010-2012 attached as Exhibit C.
	 
	 	 
	“Cash”

	 	means the aggregate amount (including any accrued
interest thereon) of any cash, deposits with the
federal reserve bank or other financial
institutions, however, excluding Restricted Cash.
	 
	 	 
	“Claims against Sellers”

	 	has the meaning as defined in Section 10.
	 
	 	 
	“Closing”

	 	has the meaning as defined in Section 4.1.
	 
	 	 
	“Closing Conditions”

	 	has the meaning as defined in Section 4.2(b).
	 
	 	 
	“Closing Confirmation”

	 	has the meaning as defined in Section 4.4(o).
	 
	 	 
	“Closing Date”

	 	has the meaning as defined in Section 4.1.
	 
	 	 
	“Company”

	 	has the meaning as defined in paragraph (A) of
the Preamble.
	 
	 	 
	“Company’s Bank Account”

	 	the bank account of the Company no.: 703396200
held with Deutsche Bank AG, German bank code:
	 

	 	86070000.
	 
	 	 
	“Damages”

	 	has the meaning as defined in Section 7.1(a).
	 
	 	 
	“Data Room”

	 	means the data room managed by the Company and
opened from 13 October to 6 November 2009 to
Purchaser.
	 
	 	 
	“Designee”

	 	has the meaning as defined in Section 13.9.
	 
	 	 
	“Due Diligence”

	 	means the due diligence by Purchaser and its
advisors conducted in the Data Room and based on
other information provided to it.
	 
	 	 
	“Environmental Laws”

	 	has the meaning as defined in Section 5.10(b).
	 
	 	 
	“EURIBOR”

	 	means the rate for deposits in Euro for a period
of three months which appears on the appropriate
page of the

 

 

			
	
	 	7

	 	 	 
	 

	 	Reuters screen (or such other page as
may replace such page on that service for the
purpose of displaying Brussels interbank offered
rate quotations of major banks as of 11.00 a.m.
(Brussels time) as determined by Sellers) on the
relevant due date to be reset accordingly at the
beginning of each following 3-months period for
which such EURIBOR is fixed.
	 
	 	 
	“Euro Reference Rate”

	 	has the meaning as defined in Section 3.4
	 
	 	 
	“Existing License Agreements”

	 	has the meaning as defined in Section 3.2(a).
	 
	 	 
	“Financial Statements”

	 	has the meaning as defined in Section 5.4.
	 
	 	 
	“Free Net Proceed”

	 	has the meaning as defined in Section 11(g).
	 
	 	 
	“Key Employees”

	 	means Dr. Theodor Scheidegger, Hans-Jörg Axmann,
Jörg Baumheuer, Christian Langen, Stephan Droxner
and Ingolf Weise.
	 
	 	 
	“Liquidity Event”

	 	has the meaning as defined in Section 11(d).
	 
	 	 
	“Loan Agreement”

	 	The EUR 192,500,000 term and revolving credit
facilities agreement between, inter alia, the
Company as borrower and Deutsche Bank Luxembourg
S.A. as facility agent, dated 30 April 2007 (as
amended on 22 May 2007 and as amended and
restated on 1 September 2008).
	 
	 	 
	“Material Adverse Change”

	 	means any decision of the management of the
Company, effect, event, development,
circumstance, condition, fact, matter or change
which, in the aggregate, is materially adverse to
the business, operations, assets, liabilities,
condition (financial or otherwise), results of
operations, cash flows or prospects of the
Company, provided that any adverse effect shall
in any event be deemed materially adverse if (i)
it can reasonably be expected to result, in the
fiscal year 2010, in a reduction of 20% or more
of the turn-over, profits or assets of the
Company, in each case versus the relevant amounts
included in the Business Plan, (ii) it is adverse
to the ability of the Company to conduct its
business as presently conducted; or (iii) it is
materially adverse to the ability of Sellers or
Purchaser to consummate the Transaction. A
Material Adverse Change shall in any event exist
when insolvency proceedings for the Company are
applied for.
	 
	 	 
	“Minimum Return”

	 	has the meaning as defined in Section 11(h).
	 
	 	 
	“Net Advantages”

	 	has the meaning as defined in Section 11(b).
	 
	 	 
	“Net Proceeds”

	 	has the meaning as defined in Section 11(f).

 

 

			
	
	 	8

	 	 	 
	“Net Repayment Amount”

	 	has the meaning as defined in Section 11(b).
	 
	 	 
	“New License Agreements”

	 	has the meaning as defined in paragraph (C) of
the Preamble.
	 
	 	 
	“Parties”

	 	means Sellers and Purchaser, collectively, each a
“Party”.
	 
	 	 
	“Permits”

	 	has the meaning as defined in Section 5.6.
	 
	 	 
	“Pre-Closing Date Tax Period”

	 	means any tax assessment period (e.g.
Veranlagungszeitraum under German tax laws) or
portion of it ending on or before the Closing
Date.
	 
	 	 
	“Preamble”

	 	means the preamble of this Agreement.
	 
	 	 
	“Proceedings”

	 	has the meaning as defined in Section 5.8
	 
	 	 
	“Purchase Price”

	 	has the meaning as defined in Section 3.1.
	 
	 	 
	“Purchaser”

	 	has the meaning as defined in the recitals of
this Agreement.
	 
	 	 
	“Purchaser’s Cash Contribu-tion”

	 	has the meaning as defined in Section 4.2(a)(iii).
	 
	 	 
	“Repayment Amount”

	 	has the meaning as defined in Section 11(a).
	 
	 	 
	“Restricted Cash”

	 	shall mean Cash that cannot be freely used by
Purchaser to permanently pay indebtedness no
later than 5 Business Days after the Closing.
	 
	 	 
	“Section”

	 	means a section in this Agreement.
	 
	 	 
	“Security Assignment”

	 	has the meaning as defined in Section 13.5(a).
	 
	 	 
	“Seller 1”

	 	has the meaning as defined in the recitals of
this Agreement.
	 
	 	 
	“Seller 1 Shares”

	 	has the meaning as defined in the recitals of
this Agreement.
	 
	 	 
	“Seller 2”

	 	has the meaning as defined in the recitals of
this Agreement.
	 
	 	 
	“Seller 2 Shares”

	 	has the meaning as defined in the recitals of
this Agreement.
	 
	 	 
	“Seller 3”

	 	has the meaning as defined in the recitals of
this Agreement.
	 
	 	 
	“Seller 3 Bank Account”

	 	has the meaning as defined in Section 3.2(a).

 

 

			
	
	 	9

	 	 	 
	“Seller 3 Royalty Claims”

	 	has the meaning as defined in Section 3.2(a).
	 
	 	 
	“Seller 3 Shares”

	 	has the meaning as defined in the recitals of
this Agreement.
	 
	 	 
	“Sellers’ Cash Contribution”

	 	has the meaning as defined in Section 4.4(g).
	 
	 	 
	“Sellers”

	 	has the meaning as defined in the recitals of
this Agreement.
	 
	 	 
	“Sellers’ Claims”

	 	has the meaning as defined in Section 4.4(l).
	 
	 	 
	“Sellers’ Guarantees”

	 	has the meaning as defined in Section 5.
	 
	 	 
	“Sellers’ Knowledge”

	 	means with regard to each Seller, the actual
knowledge as of the date of this Agreement of any
of the persons listed in Exhibit D or the
knowledge of any of such persons could have had,
if they had not acted grossly negligent
(grobfahrlässige Unkenntnis), excluding, for the
avoidance of doubt, any executive (Vorstand) or
employee of the Company.
	 
	 	 
	“Shareholder Loans”

	 	means the loans granted by Sellers to the Company
as set out in Exhibit E, including accrued
interest thereon, outstanding as of Closing.
	 
	 	 
	“Share Certificates”

	 	means the share certificates which have been
issued prior to the date hereof in relation to
the Sold Shares.
	 
	 	 
	“Silicon Supply Agreement”

	 	has the meaning as defined in Section 3.3.
	 
	 	 
	“Sold Shares”

	 	has the meaning as defined in Section 2.1.
	 
	 	 
	“Tax”, “Taxes”

	 	has the meaning as defined in Section 11(c).
	 
	 	 
	“Tax Claim”

	 	has the meaning as defined in Section 7.2(e).
	 
	 	 
	“Tax Disadvantages”

	 	has the meaning as defined in Section 11(c).
	 
	 	 
	“Transaction”

	 	has the meaning as defined in paragraph (B) of
the Preamble.
	 
	 	 
	“Transaction Costs”

	 	are any fees or costs with respect to an
attempted or contemplated sale of shares in the
Company or a similar transaction, including any
costs relating to the Transaction or the
execution of this Agreement.

 

 

			
	
	 	10
	 	 	 

SECTION 2. SALE AND PURCHASE OF THE SOLD SHARES

	2.1	 	Agreement to Sell and Purchase of Sold Shares

Upon the terms and subject to the conditions set forth in this Agreement,

Seller 1 hereby sells to Purchaser and Purchaser hereby purchases from Seller 1, the Seller 1
Shares,

Seller 2 hereby sells to Purchaser and Purchaser hereby purchases from Seller 2, the Seller 2
Shares, and

Seller 3 hereby sells to Purchaser and Purchaser hereby purchases from Seller 3, the Seller 3
Shares.

The shares sold pursuant to this Section 2.1 are collectively referred to herein as “Sold Shares”.

	2.2	 	Transfer of Sold Shares

At Closing (as defined in Section 4.1), Seller 1 shall assign and transfer to Purchaser the Seller
1 Shares, Seller 2 shall assign and transfer to Purchaser the Seller 2 Shares, and Seller 3 shall
assign and transfer to Purchaser the Seller 3 Shares, in each case in accordance with Section 4.4.

	2.3	 	Rights and Obligations Pertaining to Sold Shares

The Sold Shares shall be sold and transferred to Purchaser with all rights and obligations
pertaining thereto, including the right to receive all profits from the Company for the fiscal year
beginning on January 1, 2010, and for prior fiscal years which have not been distributed to
Sellers. Section 101 no. 2 BGB is hereby explicitly excluded.

	2.4	 	Consents and Waiver of Pre-emptive Rights
	 
	(a)	 	Each of the Sellers hereby consents to the sale of the Sold Shares and to the transfer of the
Sold Shares at Closing pursuant to Section 4.4. The resolution of the general meeting of the
Company approving the transfer of the Sold Shares is attached hereto as Exhibit
2.4(a)(i). The consent of the Company approving the transfer of the Sold Shares is
attached hereto as Exhibit 2.4(a)(ii).
	 
	(b)	 	Each of the Sellers hereby waives any pre-emptive rights and any other rights it may have
with regard to the Sold Shares.

 

 

 
			
	
	 	11
	 	 	 

SECTION 3. PURCHASE PRICE, PAYMENTS, SETTLEMENT OF INTERCOMPANY CLAIMS

	3.1	 	Purchase Price

The purchase price for the Sold Shares (hereinafter referred to as “Purchase Price”) shall be equal
to [****] in total and shall not be subject to any adjustment.

	3.2	 	Settlement of Intercompany Claims
	 
	(a)	 	Seller 3 has certain outstanding claims against the Company regarding royalties under the
license agreements regarding the Gemini-technology dated 29 September 2006 and regarding the
Quad-technology dated 6 October 2008 (together the “Existing License Agreements”) in the
aggregate amount of [****] plus accrued, but unpaid interest thereon in the amount of [****]
(such claims referred to herein as the “Seller 3 Royalty Claims”), which shall be finally and
irrevocably settled by the Company to Seller 3 at Closing to the bank account of Seller 3
[****].
	 
	(b)	 	The Company has certain claims against Seller 3 pertaining to customer account receivables
(i) in the amount of [****] plus accrued, but unpaid interest thereon in the amount of [****],
and (ii) in the amount of [****] plus accrued, but unpaid interest thereon in the amount of
[****]. Seller 3 shall settle such claims by way of payments to the Company in accordance with
the underlying terms, however, on the Closing Date at the latest.
	 
	(c)	 	Any other current and future claims of Sellers against the Company which are excluded from
Sellers’ waiver in Exhibit 4.4(l) shall be settled by the Company as specified in Exhibit
4.4(l).

	3.3	 	Silicon Supply Agreement

Seller 2 hereby agrees to use its shareholder rights (to the extent legally permitted) to cause REC
Solar Grade Silicon LLC to enter into an amendment agreement on the standard agreement for the
supply of polysilicon between REC Solar Grade Silicon LLC as supplier and the Company as customer
dated 29 September 2006, as amended from time to time (the “Silicon Supply Agreement”), according
to which the minimum purchase volume of the Company will be [****] to the extent legally permitted.
Furthermore, Seller 2 hereby agrees to use its shareholder rights (to the extent legally permitted)
to cause REC Solar Grade Silicon LLC to negotiate in good faith with the Company an amendment to
the Silicon Supply Agreement regarding the issues listed in Exhibit 3.3.

	3.4	 	Exchange Rate

Any amount to be paid under this Agreement which is not denominated in Euro shall be translated for
the purposes of payments into Euro. The exchange rate applied shall be the exchange rate which is
published by the European Central Bank (the “Euro Reference Rate”) on the day immediately before
the date when the payment is made or, if no Euro Reference

 

 

			
	
	 	12
	 	 	 

Rate is published on this day, on the day when the Euro Reference Rate was last published before
such date.

SECTION 4. CLOSING

	4.1	 	Time and Place of Closing

Subject to the satisfaction or waiver of all conditions precedent set forth in Section 4.2, the
consummation of the transactions contemplated by this Agreement, as set forth in Section 4.4 below
(the “Closing”), shall, unless otherwise agreed between the Parties, take place at the offices of
Heymann & Partner, Taunusanlage 1, 60329 in Frankfurt am Main, Germany, on the fifth Business Day
after the day on which the conditions set forth in Section 4.2(a) below are met, or at any other
time or place as the Parties may mutually agree. The date on which the Closing is consummated is
referred to herein as the “Closing Date”.

	4.2	 	Closing Conditions
	 
	(a)	 	The obligations of Purchaser and Sellers to consummate the Closing are subject to the
satisfaction of all of the following conditions precedent:

	 	(i)	 	The review period under section 53 para. 3 AWV has expired or has been
terminated by the Federal Ministry of Economics and Technology (Bundesministerium für
Wirtschaft und Technologie) and the unconditional approval of the Federal Ministry of
Economics and Technology has been obtained or is deemed to have been obtained.
	 
	 	(ii)	 	Consent of the supervisory board and any other relevant corporate body of each
Seller to the Transaction.
	 
	 	(iii)	 	(i) Receipt by Sellers of legally binding financing agreements of the
Purchaser or the Company in an amount of at least EUR 25,000,000 (in words: twenty-five
million Euro), according to which the funds to be provided under these financing
agreements will be unconditionally and irrevocably available to Purchaser or the
Company at the Closing, (ii) satisfaction, and continued satisfaction up to the
Closing, of all conditions for the payment under these financing agreements, and (iii)
receipt by Sellers of an equity commitment letter in relation to an amount of not more
than EUR 40,000,000 (in words: forty million Euro) to be used to fund Purchaser with
cash, provided the aggregate sums under (i) and (iii) are equal to a minimum amount of
EUR 65,000,000 (in words: sixty-five million Euro) (the “Purchaser’s Cash
Contribution”).
	 
	 	(iv)	 	Receipt by the Company of either (i) (aa) a binding, unconditional and
irrevocable ruling from the competent tax authorities stating that the preconditions
for the waiver of the corporate income taxes arising on the contemplated waiver of the
Sellers’ Claims pursuant to Section 4.4(l) are given, and (bb) a binding, unconditional
and irrevocable ruling from the City of Bitterfeld-Wolfen stating that the
preconditions for the waiver of the trade

 

 

			
	
	 	13
	 	 	 

	 	 	 	taxes arising on the contemplated waiver of the Sellers’ Claims pursuant to Section
4.4(l) are given, or (ii) a binding, unconditional and irrevocable ruling by the
competent tax authorities with respect to the tax neutrality of the assumption
(befreiende Schuldübernahme) of the Company’s obligations regarding the Sellers’
Claims by an Affiliate of Purchaser without recourse against the Company.
	 
	 	(v)	 	Receipt by Sellers of (i) a confirmation from the Company’s banks that (x) the
Sellers have been released, or will be released upon the payment of the amount
specified in Section 4.4(f) below, from all outstanding debt, letters of credit,
collateral, guarantees and undertakings in relation to the Bank Debt (including a
corresponding release confirmation from the Company), and (y) in case of a repayment of
the Bank Debt upon Closing, all assets, rights and claims assigned to the Company’s
banks as security are reassigned or released to the Company, and (ii) a consent
declaration of the Company’s banks that in case the Bank Debt will not be repaid upon
Closing the Company’s banks consent to the transactions contemplated in this Agreement,
in particular to the amendment of the Silicon Supply Agreement and the entering into
the New License Agreements.
	 
	 	(vi)	 	All consents, resolutions or waivers of third parties have been obtained in
writing which are necessary for the execution and/or consummation of this Agreement and
the Transaction.
	 
	 	(vii)	 	The Sellers’ Guarantees are true and correct in all material respects as of
the Closing as if made with respect to such date.
	 
	 	(viii)	 	Since the date hereof no Material Adverse Change has occurred or become known to
Purchaser.
	 
	 	(ix)	 	No enforceable judgment, injunction, order or decree by any court or
governmental authority in Germany or in any other applicable jurisdiction shall
prohibit the consummation of the Closing.
	 
	 	(x)	 	Execution of an amendment agreement on the Silicon Supply Agreement in a form
acceptable to Purchaser in its free discretion.
	 
	 	(xi)	 	Execution of the New License Agreements by the Company and Seller 3 in a form
acceptable to Purchaser in its free discretion.
	 
	 	(xii)	 	Sellers have fully performed and complied in all material respects with all
covenants and other agreements required to be performed or complied with by Sellers
pursuant to this Agreement prior to the Closing Date (other than, to the extent any
such non-compliance is capable of being cured, such non-compliance has been cured
within ten days after receipt of written notice from Purchaser of such non-compliance);
and Purchaser shall have received a certificate confirming such compliance
substantially in the form of the draft as attached hereto as Exhibit
4.2(a)(xii) signed by an authorized officer of each Seller to such effect.

 

 

			
	
	 	14
	 	 	 

	 	(xiii)	 	Purchaser has fully performed and complied in all material respects with all
covenants and other agreements required to be performed or complied with by Purchaser
pursuant to this Agreement prior to the Closing Date (other than, to the extent any
such non-compliance is capable of being cured, such non-compliance has been cured
within ten days after receipt of written notice from Sellers of such non-compliance);
and Sellers shall have received a certificate confirming such compliance substantially
in the form of the draft as attached hereto as Exhibit 4.2(a)(xiii) signed by
an authorized officer of Purchaser to such effect.

	(b)	 	The obligation of Purchaser to consummate the Closing is subject to the fulfilment or waiver
by Purchaser of the further condition precedent that, on the date that would be the Closing
Date pursuant to Sections 4.1 in the absence of this Section 4.2(b), the Cash of the Company
is not less than an amount, equal to the Cash as projected in the Business Plan of the Company
(whereby the Cash as projected at the beginning for a week shall be the Cash required at any
day of such week), which shall be updated by the executive board (Vorstand) showing the Cash
on a weekly basis (together with the conditions set out in Section 4.2(a) the “Closing
Conditions”).
	 
	(c)	 	To the extent permitted by applicable law, the Parties may mutually waive any Closing
Condition, provided that the Closing Conditions under lit. (a) (v) and (xiii) may only be
waived by the Sellers (acting jointly), the Closing Conditions under lit. (a) (iv), (vi),
(vii), (viii), (xii), and lit. (b) may only be waived by the Purchaser, and the Closing
Condition under lit. (a) (xi) may only mutually be waived by Seller 3 and the Purchaser. The
effect of a waiver of a Closing Condition shall be limited to eliminating the respective
Closing Condition and shall not prejudice any claims any Party may have on the basis of any
circumstances relating to the non-fulfilment of such Closing Condition.

	4.3	 	Right to Rescind
	 
	(a)	 	If the Closing Conditions pursuant to Section 4.2 have not been fulfilled within three months
after the date hereof, each Party shall be entitled to rescind (zurücktreten) this Agreement
by giving written notice to the respective other Party.
	 
	 	 	Any rescission right of Sellers can only be exercised jointly by all Sellers, in order to be
effective.
	 
	(b)	 	Upon rescission of this Agreement, all rights and obligations of the Parties hereunder shall
terminate without any liability of any Party to the other Party (other than for breach of this
Agreement prior to such termination), provided however, that Section 12 shall remain in full
force and effect.
	 
	(c)	 	If Sellers rescind this Agreement within three months after the date hereof, Sellers shall
[****], provided the Company does not file for insolvency proceedings within three months
after such rescission.

 

 

			
	
	 	15
	 	 	 

	4.4	 	Closing Actions

On the Closing Date, the following actions have to be taken by the Parties, either jointly or
separately, and Parties shall procure that the Company provides the respective documents, as the
case may be, which shall be taken simultaneously (Zug um Zug):

	(a)	 	delivery by Sellers to Purchaser of bank statements showing the Cash of the Company as of the
Closing Date;
	 
	(b)	 	delivery by Sellers of copies of resignation letters from the following persons or of a
shareholders’ resolution removing the following persons from the supervisory board of the
Company, effective prior to or at Closing:

	 	(i)	 	Dr. Nedim Cen as member of the supervisory board of the Company;
	 
	 	(ii)	 	Mr. Richard M. Feldt as member of the supervisory board of the Company;
	 
	 	(iii)	 	Mr. Michael El-Hillow as member of the supervisory board of the Company;
	 
	 	(iv)	 	Mr. Terje Pilskog as member of the supervisory board of the Company;
	 
	 	(v)	 	Mr. Anton Milner as member of the supervisory board of the Company; and
	 
	 	(vi)	 	Mr. John Andersen as member of the supervisory board of the Company;

	(c)	 	delivery by Sellers of a copy of the shareholders’ resolution of the Company regarding the
discharge from liability (Entlastung) of the persons in Section 4.4(b) for the fiscal year
2009 and the period from 1 January 2010 until the effectiveness of their resignation or, as
the case may be removal as supervisory board members;
	 
	(d)	 	delivery by the Company of a confirmation by fax from the Company’s bank that the debt
referred to in Section 3.2(b) has been settled by Seller 3;
	 
	(e)	 	payment by Purchaser of the Purchase Price to the Sellers in cash;
	 
	(f)	 	payment of the Purchaser’s Cash Contribution less an amount equal to the amount of the Bank
Debt that remains outstanding upon Closing, but in any case payment of not less than the
portion of Purchaser’s Cash Contribution as described in Section 4.2(a)(iii) (sub-sentence
(iii)) to the Company’s Bank Account;
	 
	(g)	 	[****] (the “Sellers’ Cash Contribution”)];
	 
	(h)	 	payment by the Company in full of the Seller 3 Royalty Claims to the Seller 3 Bank Account;
	 
	(i)	 	delivery by the Company to Sellers and Purchaser of a confirmation by fax from the Company’s
bank evidencing that the payment set forth in Section 4.4(f) has been credited to the
Company’s Bank Account;
	 
	(j)	 	delivery by the Company to Sellers and Purchaser of a confirmation by fax from the Company’s
bank evidencing that the Sellers’ Cash Contribution has been credited to the Company’s Bank
Account;

 

 

			
	
	 	16
	 	 	 

	(k)	 	delivery by Seller 3 of a fax confirmation from its bank that a payment in the amount of the
Seller 3 Royalty Claims has been credited to the Seller 3 Bank Account;
	 
	(l)	 	at the request of Purchaser, either (i) execution by Sellers of an unconditional and
irrevocable waiver of all their claims, including payment claims regarding the loan amount and
any accrued interest, under the Shareholder Loans and any other claims of Sellers against the
Company, but only if and to the extent as specified in Exhibit 4.4(l) (together the
“Sellers’ Claims”), or (ii) sale, assignment and transfer of the Sellers’ Claims by Sellers to
an Affiliate of Purchaser for a purchase price of [****];
	 
	(m)	 	execution by Sellers and Purchaser of a share transfer agreement regarding the Sold Shares,
substantially in the form as attached hereto as Exhibit 4.4(m) and transfer and
delivery of Share Certificates by way of endorsement (Indossament) to Purchaser;
	 
	(n)	 	notification by Purchaser to the Company of the change of ownership in the Sold Shares, and
entering of Purchaser in the Company’s share register; and
	 
	(o)	 	confirmation by the Parties in writing that the Closing Conditions have been fulfilled or
waived, all actions to be taken on the Closing Date under this Section 4.4 have been taken or
waived in accordance with this Agreement and that as a consequence thereof the Sold Shares
have been transferred to Purchaser (the “Closing Confirmation”).

SECTION 5. SELLERS’ GUARANTEES

Sellers hereby guarantee to Purchaser in the form of an independent guarantee pursuant to section
311 (1) BGB (selbständiges Garantieversprechen), subject to the limitations contained in this
Agreement, in particular, but not limited to, the limitations set out in Section 7, that the
following statements (the “Sellers’ Guarantees” and each individually a “Sellers’ Guarantee”) are
true and correct and not misleading as of the date hereof and will be true and correct and not
misleading as of the Closing Date, provided, however, that (i) a Sellers’ Guarantee which is
expressly made as of a specific date shall be true and correct only as of such date, (ii) the
Sellers’ Guarantees contained in Section 5.1(a) below are only made by Seller 1, the Sellers’
Guarantees contained in Section 5.1(b) below are only made by Seller 2 and the Sellers’ Guarantees
contained in Section 5.1(c) below are only made by Seller 3, and (iii) Sellers make the Sellers’
Guarantees contained in Sections 5.2 through 5.11 as several debtors (als Teilschuldner) in
proportion to their shareholding in the Company.

	5.1	 	Legal Title in the Sold Shares
	 
	(a)	 	Guarantees by Seller 1
	 
	(1)	 	This Agreement constitutes legally valid and binding obligations of Seller 1 enforceable
against Seller 1 in accordance with its terms. Seller 1 has the absolute and unrestricted
right, power, authority and capacity to execute this Agreement and to perform its obligations
under this Agreement. The execution and consummation of this Agreement and of the Transaction
by Seller 1 (i) does not violate any legal obligations of Seller 1 and is not subject to
challenge by any third party on any legal basis, including on the basis of any creditor
protection laws, other than challenges effected

 

 

			
	
	 	17
	 	 	 

	 	 	by, in connection with or relating to the insolvency of the Company or the filing for
insolvency of the Company, and (ii) does not require the consent or waiver of a third party
or approval or consent of any governmental authority other than those consents specified in
this Agreement.
	 
	(2)	 	Seller 1 is the unrestricted legal and beneficial owner of the Seller 1 Shares. The Seller 1
Shares are non-assessable (nicht nachschusspflichtig), free and clear of any third-party
rights and have not been pledged, assigned, charged, encumbered or used as security. Except
for provisions in any agreement between Sellers, provided that these agreements will be
terminated with full effect as of Closing, there are no pre-emptive rights, rights of first
refusal, options or other rights of any third party to purchase or acquire any of the Seller 1
Shares. Seller 1 is entitled to freely dispose of the Seller 1 Shares, and such disposal does
not infringe any rights of any Party or third party. The Seller 1 Shares are fully paid-in,
either in cash or in kind. There are no obligations of Seller 1 to make additional
contributions to the Company for which Purchaser may become liable. Seller 1 is not subject to
a claim pursuant to Sections 57 and 62 of the German Stock Corporation Act vis-à-vis the
Company for which Purchaser may become liable. With respect to the Seller 1 Shares, no
contributions in kind have been made and no contribution (whether cash or non-cash) or parts
thereof have been repaid or otherwise returned (whether directly or indirectly) and no hidden
distribution of profits and no hidden contributions have been made (i) for which Purchaser may
become liable or (ii) resulting in a tax liability of the Company.
	 
	(b)	 	Guarantees by Seller 2
	 
	(1)	 	This Agreement constitutes legally valid and binding obligations of Seller 2 enforceable
against Seller 2 in accordance with its terms. Seller 2 has the absolute and unrestricted
right, power, authority and capacity to execute this Agreement and to perform its obligations
under this Agreement. The execution and consummation of this Agreement and of the Transaction
by Seller 2 (i) does not violate any legal obligations of Seller 2 and is not subject to
challenge by any third party on any legal basis, including on the basis of any creditor
protection laws, other than challenges effected by, in connection with or relating to the
insolvency of the Company or the filing for insolvency of the Company, and (ii) does not
require the consent or waiver of a third party or approval or consent of any governmental
authority other than those consents specified in this Agreement.
	 
	(2)	 	Seller 2 is the unrestricted legal and beneficial owner of the Seller 2 Shares. The Seller 2
Shares are non-assessable (nicht nachschusspflichtig), free and clear of any third-party
rights and have not been pledged, assigned, charged, encumbered or used as security. Except
for provisions in any agreement between Sellers, provided that these agreements will be
terminated with full effect as of Closing, there are no pre-emptive rights, rights of first
refusal, options or other rights of any third party to purchase or acquire any of the Seller 2
Shares. Seller 1 is entitled to freely dispose of the Seller 2 Shares, and such disposal does
not infringe any rights of any Party or third party. The Seller 2 Shares are fully paid-in,
either in cash or in kind. There are no obligations of Seller 2 to make additional
contributions to the Company for which Purchaser may become liable. Seller 2 is not subject to
a claim pursuant to Sections 57 and 62 of the German Stock Corporation Act vis-à-vis the
Company for which Purchaser may become liable. With respect to the Seller 2 Shares, no
contributions in kind have been

 

 

			
	
	 	18
	 	 	 

	 	 	made and no contribution (whether cash or non-cash) or parts thereof have been repaid or
otherwise returned (whether directly or indirectly) and no hidden distribution of profits
and no hidden contributions have been made (i) for which Purchaser may become liable or (ii)
resulting in a tax liability of the Company.
	 
	(c)	 	Guarantees by Seller 3
	 
	(1)	 	This Agreement constitutes legally valid and binding obligations of Seller 3 enforceable
against Seller 3 in accordance with its terms. Seller 3 has the absolute and unrestricted
right, power, authority and capacity to execute this Agreement and to perform its obligations
under this Agreement. The execution and consummation of this Agreement and of the Transaction
by Seller 3 (i) does not violate any legal obligations of Seller 3 and is not subject to
challenge by any third party on any legal basis, including on the basis of any creditor
protection laws, other than challenges effected by, in connection with or relating to the
insolvency of the Company or the filing for insolvency of the Company, and (ii) does not
require the consent or waiver of a third party or approval or consent of any governmental
authority other than those consents specified in this Agreement.
	 
	(2)	 	Seller 3 is the unrestricted legal and beneficial owner of the Seller 3 Shares. The Seller 3
Shares are non-assessable (nicht nachschusspflichtig), free and clear of any third-party
rights and have not been pledged, assigned, charged, encumbered or used as security. Except
for provisions in any agreement between Sellers, provided that these agreements will be
terminated with full effect as of Closing, there are no pre-emptive rights, rights of first
refusal, options or other rights of any third party to purchase or acquire any of the Seller 3
Shares. Seller 3 is entitled to freely dispose of the Seller 3 Shares, and such disposal does
not infringe any rights of any Party or third party. The Seller 3 Shares are fully paid-in,
either in cash or in kind. There are no obligations of Seller 3 to make additional
contributions to the Company for which Purchaser may become liable. Seller 3 is not subject to
a claim pursuant to Sections 57 and 62 of the German Stock Corporation Act vis-à-vis the
Company for which Purchaser may become liable. With respect to the Seller 3 Shares, no
contributions in kind have been made and no contribution (whether cash or non-cash) or parts
thereof have been repaid or otherwise returned (whether directly or indirectly) and no hidden
distribution of profits and no hidden contributions have been made (i) for which Purchaser may
become liable or (ii) resulting in a tax liability of the Company.
	 
	5.2	 	Corporate
	 
	(a)	 	The statements in Section (A) of the Preamble are true and correct.
	 
	(b)	 	The Company (i) has been duly established, (ii) is validly existing and (iii) has the
requisite corporate power and authority to carry on its business as conducted as of the date
hereof and the Closing Date.
	 
	(c)	 	The Sold Shares are duly authorized and validly issued. The Company is not obliged to issue
further shares. There are no securities or other instruments convertible into shares or equity
interests in the Company.

 

 

			
	
	 	19
	 	 	 

	(d)	 	Except as disclosed in Exhibit 5.2(d), with respect to the Company, the mandatory
provisions of applicable laws (including capital maintenance rules and insolvency laws) in
relation to any capital increase, capital decrease or similar procedure affecting the share
capital, and profit distributions have been complied with.
	 
	(e)	 	The Company is not, and was not in the past, a party (i) to any enterprise agreement within
the meaning of sections 291 and 292 AktG, (ii) any silent partnership agreement (stille
Beteiligung) or (iii) any agreement that grants a third party any right with respect to the
corporate governance or profits of the Company.
	 
	(f)	 	No shareholders’ resolution of the Company is void or has been challenged (angefochten) or
threatened to be challenged by any shareholder or any third party.
	 
	(g)	 	To Sellers’ Knowledge, the Company is under no obligation to acquire any shares or
partnership interests in any company or other entities or to make any contributions to any
company or other entities.
	 
	5.3	 	No Finder’s Fee and No Transaction Costs

The Company is under no obligation to pay any (i) Transaction Costs or (ii) any fees regarding any
waiver or standstill agreement regarding the Bank Debt, other than Transaction Costs triggered by
actions of Purchaser or its Affiliates; for the avoidance of doubt, this Section 5.3 shall not
apply to fees to be paid by the Company to the Company’s banks in connection with the refinancing
of the Bank Debt.

	5.4	 	Financial Statements

The audited financial statements of the Company consisting of balance sheet, profit and loss
statement and notes and business report for the year ended December 31, 2008 as well as financial
statements of the Company consisting of balance sheet, profit and loss statement as of June 30,
2009 and as of September 30, 2009 as well as the unaudited draft financial statements of the
Company consisting of balance sheet, profit and loss statement and notes for the year ended
December 31, 2009 (together the “Financial Statements”), which are attached as Exhibit 5.4,
have been prepared, unless otherwise specified in Exhibit 5.4, in accordance with IAS/IFRS
and applicable German laws, and with valuation methods and capitalization rights consistently
applied in accordance with past practice.

	5.5	 	Real Estate

Exhibit 5.5 includes a true and correct list of all real estate owned or co-owned by, or
subject to an inheritage building right (Erbbaurecht) in favour of, the Company. Except as
disclosed in Exhibit 5.5, the Company is the unrestricted legal and beneficial owner of the
real estate listed in Exhibit 5.5 and there are no encumbrances (including mortgages) on
such real estate. Except as disclosed in Exhibit 5.5, such real estate is freely accessible
and there are no payments required to secure access to such real estate.

 

 

			
	
	 	20
	 	 	 

	5.6	 	Permits and Legal Compliance

Except as disclosed in Exhibit 5.6, the Company holds all governmental approvals and
permits necessary (i) for the premises, buildings and equipments existing on the sites occupied by
it or (ii) required to operate its business as it is carried out as of the date hereof and the
Closing Date (collectively the “Permits”). To Sellers’ Knowledge and except as disclosed in
Exhibit 5.6, the Company is, and has been within the past five years prior to the date
hereof, in compliance with all Permits and all applicable laws, regulations, and governmental and
court orders.

	5.7	 	No Unlawful Business Practices

Sellers, and to Sellers’ Knowledge, the Company and the managing directors and employees of the
Company have not, directly or indirectly, in connection with the business of the Company (i) used
any funds for unlawful purposes or political contributions in violation of applicable laws, (ii)
requested or accepted any unlawful benefits or (iii) established or maintained any funds or assets
that have not been properly recorded in the books and records of the Company.

	5.8	 	Proceedings

As of the date hereof, the Company is not involved in any legal or administrative proceedings,
including arbitration proceedings, lawsuits, litigation and investigations of any authorities or
administrative proceedings involving, in each case, an amount in excess of EUR 50,000 (collectively
“Proceedings”), and to Sellers’ Knowledge, there are no such Proceedings threatening, in each case
except as disclosed in Exhibit 5.8.

	5.9	 	Employment Matters

To Sellers’ Knowledge, none of the Key Employees has, at the date hereof, given notice of
termination of his or her employment or has to Sellers’ Knowledge indicated that he or she
considers giving such notice. Except as disclosed to Purchaser prior to the date hereof, none of
the Key Employees has received or has been promised a bonus or similar benefits in view of the
process regarding the Transaction, other than triggered by actions of Purchaser or its Affiliates.

	5.10	 	Environmental Matters
	 
	(a)	 	Except as disclosed in Exhibit 5.10(a), the business of the Company is conducted and
has been conducted in the past in compliance with all Environmental Laws, and there are and
there have been no contaminations of, or hazardous substances (including any “Altlasten” and
“schädliche Bodenveränderungen” within the meaning of the German Soil Protection Act
(Bundesbodenschutzgesetz)) in, the soil, soil vapor, ground water, surface water or buildings
or other structures of any real estate currently or formerly owned and/or used by Company or
for which the Company is otherwise liable other than in concentrations which are in compliance
with applicable Environmental Laws. Except as disclosed in Exhibit 5.10(a), the
Company has in the past not spilled or deposited any hazardous substances to any property or
created any air or noise

 

 

			
	
	 	21
	 	 	 

	 	 	emissions, in each case in excess of the levels permitted under the Permits and applicable
Environmental Laws.
	 
	(b)	 	For the purposes of this Agreement, “Environmental Laws” shall mean any law, regulation or
other binding rule relating to, or imposing liability, or standards of conduct, for the
protection of the environment or human health or the use, handling, generation, manufacturing,
storage or disposal of hazardous substances and preparations in the meaning of Article 2 (2)
of the European Community Council Directive of 67/548 EEC, or, as far as applicable,
corresponding laws of other jurisdictions, in each case as in effect and as enforced and
interpreted by the competent governmental authorities on the date hereof.
	 
	5.11	 	Subsidies

Exhibit 5.11 contains a true and correct list of all subsidies, allowances, aids and public
grants received by or granted to the Company or currently applied for by the Company.

	5.12	 	No other Representations and Warranties

Subject to the representations and indemnities expressly contained in this Agreement, Purchaser
agrees to accept the Sold Shares and the Company in the condition they are in on the Closing Date,
based upon its own inspection, examination and determination with respect thereto (including the
Due Diligence investigation conducted by it), without reliance upon any express or implied
representations or warranties of any nature of Sellers or any employee, advisor or representative
of Sellers. Purchaser acknowledges that Sellers make no explicit or implied representations,
warranties or guarantees and assume no disclosure or similar obligations in connection with this
Agreement and the transactions contemplated hereby, except as expressly set forth in this
Agreement.

SECTION 6. COVENANTS

	6.1	 	Conduct of Business prior to Closing
	 
	(a)	 	Except as disclosed in Exhibit 6.1(a), or except for any transactions contemplated by
this Agreement, from the date hereof to the Closing Date, Sellers shall use their shareholder
rights (to the extent permitted under applicable law) so as to cause the Company to conduct
its business, in all material respects, in the ordinary course, consistent with past practice,
and Sellers, in particular, shall not, and shall use their rights as holders of all shares in
the Company (to the extent permitted under applicable law and the articles of association or
by-laws of the Company) so as to cause the Company not to, take, or commit to take, any of the
following actions:

	 	(i)	 	any recapitalization or reorganization, any merger or similar business
combination between the Company and any third party, any split (Spaltung), dissolution,
liquidation or other significant change of the corporate structure;
	 
	 	(ii)	 	any declaration or payment of dividends by the Company to any of the Sellers;

 

 

			
	
	 	22
	 	 	 

	 	(iii)	 	any acquisition, encumbrance or divestiture by the Company of a shareholding
or business (Geschäftsbereich);
	 
	 	(iv)	 	any incurrence or guarantee by the Company of any indebtedness for borrowed
money in excess of EUR 100,000;
	 
	 	(v)	 	any investment by the Company in, or the making of any loan to, any other
company or entity exceeding in each case EUR 100,000;
	 
	 	(vi)	 	any sale of any fixed assets with a value in excess of EUR 100,000 in the
individual case;
	 
	 	(vii)	 	any capital expenditure by the Company, by additions or improvements to
property, plant or equipment, in excess of EUR 100,000 each, except as provided in any
plan or budget disclosed to Purchaser prior to the date hereof;
	 
	 	(viii)	 	any lay-off with respect to a significant part of the workforce of the Company;
	 
	 	(ix)	 	any change in, or commitment to change, any compensation or benefit of any Key
Employee pursuant to any severance, retirement or other agreement made in connection
with this Agreement or the transactions contemplated hereby;
	 
	 	(x)	 	amend or terminate (i) the New License Agreements or (ii) the Silicon Supply
Agreement as amended pursuant to this Agreement; or
	 
	 	(xi)	 	file for insolvency unless required by mandatory laws
	 
	 	in each case without Purchaser’s prior consent (such consent not to be unreasonably
withheld). If Purchaser does not react to such request of Sellers within five Business Days,
the consent shall be deemed granted.

	(b)	 	Sellers’ obligations in this Section 6 shall not apply if and to the extent that Sellers’
compliance with those obligations may cause that Sellers or any of Sellers’ Affiliates or
directors or representatives is reasonably likely to become liable to the Company or any third
party based on actions that would have to be taken under this Section 6.
	 
	6.2	 	Cooperation
	 
	(a)	 	The Parties shall co-operate faithfully in order to achieve the fulfilment of the Closing
Conditions and will inform each other immediately of any correspondence with the German
Federal Ministry of Economics and Technology.
	 
	(b)	 	The Parties shall inform each other by e-mail without undue delay, but at the latest within
two Business Days after having been notified of the fulfilment of any Closing Condition set
forth in Section 4.2.
	 
	6.3	 	Access to Information
	 
	(a)	 	After the Closing Date, Purchaser will, and shall use its shareholder rights (to the extent
permitted under applicable law) so as to cause the Company to, promptly give

 

 

			
	
	 	23
	 	 	 

	 	 	access to Sellers and their representatives and advisors, upon reasonable request, to
accounting, financial, and other records (and allow them to make copies thereof), as well as
to any other information, management or employees to the extent necessary to Sellers in
connection with any audit, investigation, dispute or litigation, or any other comparable
business purpose of any Seller, provided that each representative and advisor shall be
subject to a professional duty of confidentiality or a contractual duty of confidentiality
in relation to Purchaser.
	 
	(b)	 	Purchaser shall use its shareholder rights (to the extent permitted under applicable law) so
as to cause the Company to keep all books and records relating to any period prior to the
Closing Date in accordance with any applicable law.
	 
	(c)	 	After the Closing Date, each Seller will promptly give access to Purchaser and its
representatives and advisors, upon reasonable request, to accounting, financial, and other
records (and allow them to make copies thereof), as well as to any other information,
management or employees to the extent necessary to Purchaser in connection with any audit,
investigation, dispute or litigation, or any other comparable business purpose of Purchaser,
provided that each representative and advisor shall be subject to a professional duty of
confidentiality or a contractual duty of confidentiality in relation to such Seller.

SECTION 7. INDEMNIFICATION BY SELLERS

	7.1	 	Indemnification
	 
	(a)	 	If one or several of the statements made by Sellers in Sections 5.1 through 5.11 are not true
and correct (a “Breach”), Sellers shall first have a right to cure the Breach within a period
of two months after having received a written notice specifying the factual basis of the
alleged Breach in reasonable detail from Purchaser by putting Purchaser or, at Purchaser’s
election, the Company, wherever the Damages (as defined below) occur, in the position in which
it would be if there was no Breach. In case Sellers refuse to or are not able to cure the
respective Breach, or the Breach is not capable of being cured within the period set forth in
the preceding sentence, Sellers shall pay to Purchaser, or at Purchaser’s election, to the
Company, monetary damages (Schadensersatz in Geld) within the meaning of sections 249 et seq.
BGB incurred by Purchaser or the Company as a result of the Breach, including consequential or
indirect damages (Folgeschäden, mittelbare Schäden) and frustrated expenses (vergebliche
Aufwendungen) within the meaning of section 284 BGB, but excluding (i) lost profits
(entgangener Gewinn), (ii) internal administration and overhead costs or (iii) any losses
based on the argument that the purchase price for the Sold Shares was calculated on the basis
of incorrect assumptions or information (“Damages”).
	 
	(b)	 	Subject to the provisions set forth in this Agreement, the general concepts of German law
relating to the calculation of damages (Schadensberechnung) and benefit compensation for
damages (Vorteilsausgleich; Abzug Alt für Neu) shall apply to the calculation of any damages
and to any claims hereunder, irrespective, for the avoidance of doubt, of the fact whether the
benefit compensation for damages is received by Purchaser or, after the Closing, the Company.
All payments made by

 

 

			
	
	 	24
	 	 	 

	 	 	Sellers to Purchaser under this Section 7 shall constitute a reduction of the Purchase
Price. If and to the extent payments are made by the Sellers to the Company, such payments
shall be construed and deemed as contribution (Einlage) made by Purchaser to the Company and
shall be treated as a reduction of the Purchase Price as between the Parties.
	 
	(c)	 	Any liability of Sellers to indemnify or pay damages to Purchaser is excluded if and up to
the amount:

	 	(i)	 	the underlying facts, circumstances or events to which the claim relates are
disclosed in this Agreement or the Exhibits to Section 5 of this Agreement;
	 
	 	(ii)	 	Purchaser or, after the Closing, the Company, or any of their respective
successors, or any of their Affiliates has caused (verursacht oder mitverursacht) the
relevant Damage or an increase of its amount, or failed to mitigate damages (including
any failure to exercise claims against an insurance company or any third party) in each
case pursuant to section 254 BGB;
	 
	 	(iii)	 	the Damage is attributable to Purchaser not having complied with any of the
provisions of this Agreement;
	 
	 	(iv)	 	the Damage is attributable to or is increased as a result of any change of law,
regulation, directive, or administrative practice coming into effect on or following
the date hereof; or
	 
	 	(v)	 	the amount is recovered from a third party or under any insurance policy of the
Company, including any insurance policy if the insurance coverage existing at Closing
had been continued without change after Closing (minus any amount of increases in any
insurance premiums resulting therefrom and, in case of any insurance policies entered
into by the Company after Closing, minus any monetary disadvantages of the Company
resulting from the entering into any new insurance policy).

	(d)	 	For the avoidance of doubt, if and to the extent Purchaser is entitled to a claim, or payment
in respect of the same factual circumstances (Lebenssachverhalt) under more than one provision
of this Agreement, then the Purchaser shall only be entitled to recover once (no double dip).
	 
	(e)	 	Sections 442 BGB and 377 HGB shall not apply.
	 
	7.2	 	Notification of Damage Claims and Remedial Measures; Cooperation in Tax Matters
	 
	(a)	 	Purchaser shall inform, and shall use its shareholder rights (to the extent permitted under
applicable law) so as to cause the Company to inform Sellers of any possible Breach, together
with a reasonably detailed description of its claim, and, if possible, the estimated amount of
such claim, within a reasonable period by written notice to be delivered at the latest within
four Business Days after Purchaser has knowledge of a Breach, in particular if third parties
assert or threaten claims against Purchaser or the

 

 

			
	
	 	25
	 	 	 

	 	 	Company that would lead to a liability of Sellers under or in connection with this Section.
In addition, Purchaser shall, and shall use its shareholder rights (to the extent permitted
under applicable law) so as to cause the Company to make available all documents and
information reasonably required for the assessment whether there are valid grounds for a
Breach or the asserted or threatened claim to Sellers and to their advisors, provided that
Sellers and each representative and advisor shall be subject to a professional duty of
confidentiality or a contractual duty of confidentiality in relation to the Company and
Purchaser. In case of such third parties’ claims, Purchaser shall give Sellers the
opportunity to defend Purchaser, and shall use its shareholder rights (to the extent
permitted under applicable law) so as to cause the Company to give Sellers the opportunity
to defend the Company against such claims at Sellers’ cost and expenses unless this would
interfere with legitimate business interests of Purchaser and/or the Company. If it turns
out that Sellers were not in breach, any costs and expenses reasonably incurred by it in
connection with the defence (including reasonable advisors’ fees, but excluding internal
costs) shall be borne by Purchaser and Sellers equally. No action by Sellers or their
representatives in connection with the defence shall be construed as an acknowledgement
(whether express or implied) of Purchaser’s claims under this Agreement or of any underlying
facts relating thereto.
	 
	(b)	 	Purchaser shall ensure that all reasonable steps are taken by itself and shall, after the
Closing, use its shareholder rights (to the extent permitted under applicable law) so as to
cause the Company to ensure that all reasonable steps are taken by the Company which are
necessary to avoid a liability of Sellers under this Agreement and to mitigate the amount of
any such liability and to overcome any such liability.
	 
	(c)	 	In the event and to the extent that Sellers indemnify Purchaser for a Breach in accordance
with this Section 7, Purchaser shall promptly assign and shall use its shareholder rights (to
the extent permitted under applicable law) so as to cause the Company to assign to Sellers all
claims Purchaser or the Company might have against any third party (in particular insurances)
in connection with the event that caused such losses for which Sellers grant Purchaser
indemnification under this Section 7. In the event that an assignment of such claims should
not be possible for legal reasons, Purchaser shall procure that Sellers and any Affiliate of
Sellers be put in a position as if an assignment had been effected.
	 
	(d)	 	Without prejudice to Section 7.1(c)(iii), any liability of Sellers under this Section 7 shall
be excluded if and to the extent Sellers are prejudiced in their defence against claims of
Purchaser under this Agreement by a failure of Purchaser to comply with its obligations under
Section 7.2(a) to (c).
	 
	(e)	 	In respect of any Breach actually or potentially resulting in a tax liability of the Company
or an increase of a tax liability of the Company for which Sellers are or may be liable under
Section 7.1 (each such actual or potential liability of Sellers under Section 7.1 a “Tax
Claim”), the following shall apply:

	 	(i)	 	Purchaser agrees, and shall use its shareholder rights (to the extent permitted
under applicable law) so as to cause the Company, (x) to inform Sellers within
reasonable time but in any event not later than ten (10) Business Days in advance of
any meeting, end of term (Fristablauf) or similar event, of any audits, disputes,
administrative, judicial or other proceedings related to any potential

 

 

			
	
	 	26
	 	 	 

	 	 	 	Tax Claim, (y) to give Sellers and/or their representatives the opportunity to
participate at their own cost in any audits, disputes, administrative, judicial or
other proceedings related to any potential Tax Claim, (z) to comply with instructions
reasonably given by Sellers and/or their representatives in relation to the conducting
of such proceedings, provided such instructions are related to Tax Claims, and (iv) to
challenge and litigate any Tax assessment or other decision of any tax authority as
reasonably requested by Sellers, provided and only to the extent such assessment or
decision is related to a Tax Claim.
	 
	 	(ii)	 	Insofar as actual or potential Tax Claims are concerned, Purchaser and Sellers
shall fully cooperate, and shall cause their representatives to fully cooperate, with
each other in connection with tax matters relating to any Pre-Closing Date Tax Period,
including the preparation and filing of any tax return or the conducting of any audit,
investigation, dispute or appeal or any other relevant communication with any tax
authority. Any tax returns relating to actual Tax Claims or Tax Claims reasonably to be
expected to be made shall be subject to the review and prior written consent of
Sellers, such consent not to be withheld unreasonably. Purchaser shall use its
shareholder rights (to the extent permitted under applicable law) so as to cause the
Company that any tax returns to be reviewed and approved by Sellers will be furnished
to Sellers no later than 25 days prior to the due date of the relevant tax return.
	 
	 	(iii)	 	Cooperation between Purchaser and Sellers shall include (but shall not be
limited to) the providing and making available of all relevant books, records and
information, and the assistance of all relevant officers and employees of the Company
or, as the case may be, Sellers or its Affiliates, to the extent necessary or
reasonably useful in connection with Tax Claims.

	(f)	 	Section 7.1(c)(iii) and Section 7.2(a) to (d) shall not apply in respect of Tax Claims.
	 
	(g)	 	Any liability of Sellers under this Section 7 in respect of a Tax Claim shall be excluded if
and to the extent such Tax Claim is caused or Sellers are prejudiced in their defence against
Tax Claims of Purchaser by a failure of Purchaser to comply with its obligations under Section
7.2(e).
	 
	7.3	 	Limitations on Liability
	 
	(a)	 	Except for a Breach of any Sellers’ Guarantees made in Sections 5.1 and 5.2, Sellers will
only be liable to cure a Breach or to pay Damages in accordance with Section 7.1 with respect
to any Damages to the extent the individual claim recoverable by Purchaser exceeds [****] in
which case only the excess amount shall be recoverable.
	 
	(b)	 	Sellers’ total liability

	 	(i)	 	for the Breach of any Sellers’ Guarantees made in Section 5.1 [****];
	 
	 	(ii)	 	for any and all Breaches of Sellers’ Guarantees made in Section 5.2 [****];
	 
	 	(iii)	 	for any and all Breaches of Sellers’ Guarantees made in Section 5.7 [****];
and

 

 

			
	
	 	27
	 	 	 

	 	(iv)	 	for any and all Breaches of Sellers’ Guarantees made in Sections 5.3 through
5.6 and in Sections 5.8 through 5.11 in which case the total liability of Sellers under
each of the aforementioned Sellers’ Guarantees [****].

	7.4	 	Statute of Limitation
	 
	(a)	 	Unless otherwise stipulated by this Agreement, any claims of Purchaser under this Agreement
shall become time-barred two years after the Closing Date, except for Breaches of the Sellers’
Guarantees (i) under Section 5.1 which shall not become time-barred (excluding to the extent
possible also the statutory time limitations (gesetzliche Verjährungsfristen), and (ii) under
Section 5.2 which shall become time-barred five years after the Closing Date.
	 
	(b)	 	Any limitation period pursuant to this Section 7.4 shall be extended (gehemmt) only in the
event that a statement of claims is filed with the competent court (in accordance with Section
14.2) within the applicable limitation period (section 244 para. 1 no. 1 BGB). In case of an
interruption (Neubeginn), the new limitation period (section 213 BGB) shall be the longer of
six months or the reminder of the initial limitation period.
	 
	7.5	 	No Additional Rights or Remedies
	 
	(a)	 	The Parties agree that the rights and remedies which Purchaser may have with respect to the
breach of any guarantee, representation, warranty, covenant or agreement or with respect to
any indemnity contained in this Agreement are limited to the rights and remedies explicitly
contained herein.
	 
	(b)	 	Any and all rights and remedies of any legal nature which Purchaser may otherwise have (in
addition to the claims for specific performance (primäre Erfüllungspflichten) and the
indemnity claims explicitly set forth herein) against any Seller or any of their Affiliates or
their executives or representatives in relation to the sale of Company to Purchaser, this
Agreement or the transactions contemplated hereby shall be excluded. In particular, without
limiting the generality of the foregoing, Purchaser hereby waives any rights and claims under
statutory representations and warranties (sections 434 et seq. BGB), statutory, contractual or
pre-contractual obligations (sections 280 to 282, 311 BGB) or frustration of contract (section
313 BGB) or tort (sections 823 et seq. BGB) and Purchaser shall not have any right to rescind,
cancel or otherwise terminate this Agreement or exercise any right or remedy which would have
a similar effect, except for the termination rights set forth in Section 4.3.
	 
	(c)	 	The provisions of this Section 7.5 shall not affect any rights and remedies of the Parties
for fraud (Arglist) or wilful misconduct (Vorsatz) nor any claims arising from a breach of an
obligation to make a payment in accordance with Section 3 or with Section 4.4.

 

 

			
	
	 	28
	 	 	 

SECTION 8. REPRESENTATIONS OF AND INDEMNITY FROM PURCHASER

	8.1	 	Representations

Purchaser represents and warrants to Sellers as follows, in each case as of the date hereof and the
Closing Date, provided, however, that a guarantee which is expressly made as of a specific date
shall be true and correct only as of such date:

	(a)	 	Purchaser is a company duly organized, validly existing and in good standing under the laws
of Luxembourg and has all corporate powers required to carry on its business as presently
conducted.
	 
	(b)	 	The execution and performance by Purchaser of this Agreement are within Purchaser’s corporate
powers, do not violate the articles of association or by-laws of Purchaser and have been duly
authorized by all requisite corporate bodies, if necessary. This Agreement constitutes the
valid and binding obligation of Purchaser, enforceable in accordance with its terms, without
any further condition unless otherwise specified herein.
	 
	(c)	 	Except with respect to the AWV control requirements set forth in Section 4.2(a), no consent,
approval or authorization of, permit from, or declaration, filing or registration with any
governmental or regulatory authority, or any other person or entity is required to be made or
obtained by Purchaser in connection with the execution, delivery and performance of this
Agreement and the consummation of the transactions contemplated hereby.
	 
	(d)	 	As of the date hereof, there is no lawsuit, investigation or proceeding pending against, or,
to Purchaser’s knowledge, threatened in writing against Purchaser before any court, arbitrator
or governmental authority which in any manner challenges or seeks to prevent, alter or
materially delay the transactions contemplated by this Agreement.
	 
	(e)	 	Purchaser is purchasing the Sold Shares for its own account.
	 
	(f)	 	As of the date hereof, based on the Due Diligence, Purchaser is not aware that a Breach has
occurred and that Sellers could reasonably be liable for Damages under Section 7.
	 
	(g)	 	Purchaser does not have any obligation or liability to pay any fees or commissions to any
broker, finder or agent with respect to any of the transactions contemplated by this Agreement
for which Sellers could become liable.
	 
	8.2	 	Indemnity in Case of Breach of Representation
	 
	(a)	 	Purchaser shall indemnify, defend and hold harmless Sellers from and against and in respect
of any and all losses asserted against, suffered or incurred by Sellers which arise out of a
breach or inaccuracy of any representation of Purchaser under Section 8.1 above. Subject to
the provisions set forth in this Agreement, the general concepts of German law relating to the
calculation of damages (Schadensberechnung) and benefit compensation for damages
(Vorteilsausgleich; Abzug Alt für Neu) shall 

 

 

			
	
	 	29
	 	 	 

	 	 	apply to the calculation of any damages and to any claims hereunder. All payments made by
Purchaser to Sellers under this Section 8 shall constitute an increase of the Purchase
Price.
	 
	(b)	 	Any claims of Sellers under this Section 8 shall become time-barred two years after the
Closing Date.
	 
	(c)	 	Subject to the representations and indemnities expressly contained in this Agreement, Sellers
agree that neither Purchaser nor any employee, advisor or representative of Purchaser has made
any express or implied representations or warranties of any nature. Sellers acknowledge that
Purchaser makes no explicit or implied representations, warranties or guarantees and assumes
no disclosure or similar obligations in connection with this Agreement and the transactions
contemplated hereby, except as expressly set forth in this Agreement.
	 
	(d)	 	The Parties agree that the rights and remedies which Sellers may have with respect to the
breach of any guarantee, representation, warranty, covenant or agreement or with respect to
any indemnity contained in this Agreement are limited to the rights and remedies explicitly
contained herein.
	 
	(e)	 	Any and all rights and remedies of any legal nature which Sellers may otherwise have (in
addition to the claims for specific performance (primäre Erfüllungspflichten)) against
Purchaser or any of its Affiliates or executives or representatives in relation to the sale of
Company to Purchaser, this Agreement or the transactions contemplated hereby shall be
excluded. In particular, without limiting the generality of the foregoing, Sellers hereby
waive any rights and claims under statutory, contractual or pre-contractual obligations
(sections 280 to 282, 311 BGB) or frustration of contract (section 313 BGB) or tort (sections
823 et seq. BGB) and Sellers shall not have any right to rescind, cancel or otherwise
terminate this Agreement or exercise any right or remedy which would have a similar effect,
except for the termination rights set forth in Section 4.3. For the avoidance of doubt, this
Section 8.2(e) shall not apply Sellers’s claims which are excluded from Sellers’ waiver as
outlined in more detail in Exhibit 4.4(l).
	 
	(f)	 	The provisions of this Section 8.2 shall not affect any rights and remedies of the Parties
for fraud (Arglist) or willful misconduct (Vorsatz) nor any claims arising from a breach of an
obligation to make a payment in accordance with Section 3 or with Section 4.4.

SECTION 9. REGULATORY REQUIREMENTS

	(a)	 	Purchaser (and Sellers, to the extent any filing cannot be made by Purchaser on behalf of
Sellers under applicable law), shall ensure that any filings, notifications or submissions
necessary in connection with the AWV clearance referred to in Section 4.2(a)(i) and any other
filings with, or notifications to, any governmental authority required in connection with this
Agreement will be made without undue delay after the date of this Agreement.

 

 

			
	
	 	30
	 	 	 

	(b)	 	In order to obtain all requisite approvals and clearances for the transactions contemplated
by this Agreement under any applicable laws, the Parties shall (i) cooperate in all respects
with each other in the preparation of any filing or notification and in connection with any
submission, investigation or inquiry, (ii) supply to any competent authority as promptly as
practicable any additional information requested pursuant to any applicable laws and take all
other procedural actions required in order to obtain any necessary clearance or to cause any
applicable waiting periods to commence and expire, (iii) promptly provide each other with
copies of any written communication (or written summaries of any non-written communication) in
connection with any proceedings, and (iv) contact any competent authority only after
consultation with the other party and give each other and their respective advisors the
opportunity to participate in all meetings and conferences with any competent authority, all
to the extent reasonably practicable.
	 
	(c)	 	In the event that any obligations or conditions (Auflagen und Bedingungen) or other
agreements are required by any competent authority as a condition to the clearance of the
transactions contemplated hereby, no Party shall be required to comply with such obligations
or conditions.
	 
	(d)	 	With respect to the Closing Conditions set forth in Section 4.2(a)(i), if the consummation of
the Closing is prohibited by any governmental authority or court, upon Sellers’ request, the
Parties shall contest such decision and use all other reasonable efforts to ensure that the
Closing may be consummated as contemplated by this Agreement and as timely as reasonably
practicable. The Parties shall, however, not be under any obligation to litigate the matter
before a court.
	 
	(e)	 	If any obligations, conditions, other agreements or measures are required by any competent
authority as a condition to the clearance of the transactions contemplated hereby, the Parties
shall discuss in good faith whether and how the transactions contemplated by this Agreement
could be consummated in light of any decision by a competent authority after the Closing Date
prohibiting any transaction contemplated hereby or whether any amendment of this Agreement
shall be agreed.

SECTION 10. CLAIMS AGAINST SELLERS

After the Closing, Purchaser shall use its shareholder rights (to the extent permitted under
applicable law) so as to cause the Company not to exercise any claims against Sellers or Sellers’
Affiliates (i) on the basis or in connection with the Sellers’ capacity as former shareholders of
the Company or (ii) on other grounds other than those listed in Exhibit 10 (the claims in
(i) and (ii) are the “Claims against Sellers”). Furthermore, Purchaser shall, as long as it holds
shares in the Company, vote against shareholders resolutions of the Company according to which the
Company will make any Claims against Sellers or Sellers’ Affiliates. Purchaser’s obligations in
this Section 10 shall not apply if and to the extent that Purchaser’s compliance with those
obligations may cause that Purchaser or any of Purchaser’s Affiliates or directors or
representatives is reasonably likely to become liable to the Company or any third party based on
actions that would have to be taken under this Section 10.

 

 

			
	
	 	31
	 	 	 

SECTION 11. BALANCING OF POST-CLOSING PAYMENTS

	(a)	 	If a Seller or a Seller’s Affiliate makes after the Closing a payment to the Company in order
to settle a claim of the Company arising from a violation of corporate laws against that
Seller or that Seller’s Affiliate that occurred (i) prior to or at the Closing Date in
relation to the Silicon Supply Agreement, including, for the avoidance of doubt, the amendment
thereto to be entered into under this Agreement and the Existing License Agreements,
including, for the avoidance of doubt, the New License Agreements, and (ii) prior to the date
hereof in relation to any other transactions, e.g. due to a violation of Section 57 AktG (such
amount paid to the Company the “Repayment Amount”), excluding, for the avoidance of doubt, the
Sellers’ Cash Contribution, Purchaser shall, after a Liquidity Event, pay to such Seller or
such Seller’s Affiliate an amount equal to the Net Advantages.
	 
	(b)	 	The “Net Advantages” shall be an amount equal to the Repayment Amount less an amount equal to
all Tax Disadvantages of the Company triggered by the Company’s receipt of the Repayment
Amount (such net amount the “Net Repayment Amount”) plus 12% interest p.a. on the Net
Repayment Amount (calculated on such portion payable to the Seller or the Seller’s Affiliate
and calculated since the actual receipt of the Repayment Amount by the Company up to the
payment by Purchaser to the Seller or the Seller’s Affiliate).
	 
	(c)	 	“Tax Disadvantages” shall be any Taxes payable by the Company on the Repayment Amount and any
other Tax disadvantage (i.e. a reduction of loss carry forwards) of the Company triggered by
the receipt of the Repayment Amount. “Tax” or “Taxes” shall mean any tax within the meaning of
Section 3 German Tax Code (Abgabenordnung) (Steuern und steuerliche Nebenleistungen) or
equivalent tax under the laws of any other jurisdiction (including any withholding tax on
amounts paid to any person), together with any interest, penalty or addition thereto any
secondary liability (Haftung) for Tax, any contribution (Beitrag), special levy (Sonderabgabe)
or fee (Gebühr) charged by a federal regional or municipal authority and social security
contributions.
	 
	(d)	 	A “Liquidity Event” shall be an event where Purchaser receives, or Purchaser’s Affiliates
receive (i) from the Company dividends, (ii) proceeds from the sale of shares in the Company
or the share in Purchaser, (iii) proceeds from a (partial) initial public offering of the shares in the Company, or (iv) proceeds from any other transaction which is economically
equivalent to the transactions in (i) through (iii).
	 
	(e)	 	The payment obligation of Purchaser under Section 11(a) shall become due if a Liquidity Event
occurs, but then only to the extent Purchaser or Purchaser’s Affiliates receive Free Net
Proceeds. To the extent that the Free Net Proceeds are not sufficient to fully make the
payment under Section 11(a) to the respective Seller or the respective Seller’s Affiliate, the
remainder owed to such Seller or to such Seller’s Affiliate shall be paid to such Seller or
such Seller’s Affiliate from the Free Net Proceeds received by Purchaser or Purchaser’s
Affiliates from the next Liquidity Event. If more than one Seller, including Sellers’
Affiliates, has a claim against Purchaser under Section 11(a) and if the Free Net Proceeds
from a Liquidity Event are not sufficient to fully make the payments under Section 11(a) to
all such Sellers and/or such Sellers’ Affiliates, Purchaser shall use the Free Net Proceeds
from this Liquidity Event to make the payments to the Sellers and/or to the Sellers’
Affiliates pro rata in

 

 

			
	
	 	32
	 	 	 

	 	 	relation of the amounts of the claims of the Sellers and/or of the Sellers’ Affiliates then
pending against Purchaser under Section 11(a). For the avoidance of doubt, the Free Net
Proceeds shall be applied in the following order of priority: first to Sellers or Sellers’
Affiliates up to the total amounts owed by Purchaser under Section 11(a); and second to the
Purchaser or the Purchaser’s Affiliates.
	(f)	 	“Net Proceeds” are all payments which Purchaser or any Affiliate of Purchaser receives in a
Liquidity Event net of any Taxes payable by Purchaser or withheld by the Company regarding
such payments to the extent not refunded to Purchaser or Purchaser’s Affiliates.
	 
	(g)	 	“Free Net Proceeds” are Net Proceeds which Purchaser or any Affiliate of Purchaser is not
contractually restricted under existing or future financing agreements entered into with third
parties in connection (i) with the financing or refinancing of this Transaction or (ii) with
any further financing raising of the Company, Purchaser or any Affiliate of the Company or
Purchaser, to use to pay to Sellers or Sellers’ Affiliates the amounts owed to Sellers or
Sellers’ Affiliates under Section 11(a).
	 
	(h)	 	If and to the extent, after Sellers’ or Sellers’ Affiliates’ claims under Section 11(a) have
been satisfied, the limited partners of Ventizz Capital Fund IV LP as indirect stakeholders in
Purchaser receive from one or more Liquidity Events a return on their total investment
(including any transaction costs relating to such investment) in Purchaser and the Company
(including any future investments) equalling an internal rate of return (IRR) of at least 40%
(the “Minimum Return”), Purchaser shall pay to Sellers an amount equal to the difference
between (i) the Repayment Amount and (ii) the Net Repayment Amount plus 12% interest p.a. on
such difference (calculated since the actual receipt of the Repayment Amount by the Company up
to the payment of such difference by Purchaser to Sellers or Sellers’ Affiliates), provided
that the obligation in this Section 11(h) shall only apply if there are sufficient Free Net
Proceeds to make such payment and further provided that such payment shall only be made if and
to the extent such payment is possible from Free Net Proceeds exceeding the Minimum Return.
	 
	(i)	 	Purchaser will inform Sellers within reasonable time in case a Liquidity Event has occurred
and will give access to Sellers or Sellers’ Affiliates and their representatives and advisors,
upon reasonable request, to any information, management or employees to the extent necessary
in connection with Sellers’ or Sellers’ Affiliates’ rights under this Section 11, provided
that each representative and advisor shall be subject to a professional duty of
confidentiality or a contractual duty of confidentiality in relation to Purchaser.

SECTION 12. PUBLIC ANNOUNCEMENTS, DISCLOSURE, CONFIDENTIALITY

Neither Party shall make any press release or similar public announcement with respect to this
Agreement, and each Party shall keep confidential and not disclose to any third party the contents
of this Agreement and any confidential information regarding the other Party disclosed to it in
connection with this Agreement or its implementation, except as expressly

 

 

			
	
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agreed upon with the other Party and except as may be required in order to comply with the
requirements of any applicable laws or the rules and regulations of any stock exchange.

SECTION 13. MISCELLANEOUS

	13.1	 	Interest

In the event that a Party is in default (Verzug) with payments under this Agreement, it shall pay
default interest at a rate of EURIBOR plus 4% per annum from the date of default until the date
when the overdue amount is paid (calculated daily on the basis of a year of 365 days and payable at
the same time as the payment to which it relates). The right to claim further interest damages, if
any, shall remain unaffected.

	13.2	 	Costs and Expenses
	 
	(a)	 	All transfer taxes (including real estate transfer taxes), stamp duties, fees, registration
duties or other charges in connection with any regulatory requirements (including merger
control and AWV proceedings) and other charges and costs payable in connection with the
execution of this Agreement and the implementation of the transactions contemplated hereby
shall be borne by Purchaser.
	 
	(b)	 	Each Party shall pay its own expenses, including the costs of its advisors, incurred in
connection with this Agreement.
	 
	13.3	 	Notices

All notices under this Agreement must be in writing and will be deemed to have been duly given when

	(a)	 	delivered by hand (with written confirmation of receipt);
	 
	(b)	 	sent by telefax; or
	 
	(c)	 	by courier or registered mail (return receipt requested);

in each case to the appropriate addresses and telefax numbers set forth in Exhibit 13.3 (or
to such other addresses and telefax numbers as a Party may designate by notice to the other Party).
The delivery of the notices to the legal counsel shall not substitute the delivery to the
respective Party, unless expressly agreed in this Agreement.

	13.4	 	Entire Agreement; Amendments and Waivers
	 
	(a)	 	This Agreement (including all Exhibits hereto) contains the entire agreement between the
Parties with respect to the subject matter hereof and supersedes all prior agreements and
understandings with respect thereto.

 

 

			
	
	 	34
	 	 	 

	(b)	 	Any provision of this Agreement (including this Section 13.4) may be amended or waived only
if such amendment or waiver is (i) by written agreement executed by all Parties and explicitly
refers to this Agreement or (ii) by notarized deed, if required by law.
	 
	13.5	 	Assignments, Third Parties
	 
	(a)	 	Neither Party may assign any of its claims or rights under this Agreement without the prior
consent of the respective other Parties, except for the assignment of any claims and rights
under this Agreement by Purchaser for security purposes to certain banks and other financing
sources providing financing to (i) Purchaser, (ii) any Purchaser’s Affiliate, or (iii) to the
Company in connection with the financing of the Transaction or the refinancing of such
financing (any such assignment a “Security Assignment”). The Parties are in agreement that any
Security Assignment shall be permitted and does not require any further consent of any other
Party.
	 
	(b)	 	Except as expressly set forth in this Agreement, this Agreement shall not grant any rights
to, and is not intended to operate for the benefit of, any third parties (including the
Company), unless otherwise explicitly provided for herein.
	 
	13.6	 	Set-off and Retention

Except as expressly set forth in this Agreement, no Party shall be entitled to any set-off
(Aufrechnung) or retention (Zurückbehaltung) with respect to any rights or claims under this
Agreement unless the right or claim of the Party claiming a right of set-off or retention has been
acknowledged in writing by the respective other Party or has been confirmed by a final decision of
a competent court.

	13.7	 	Further Assurances

Each Party agrees and shall ensure that neither such Party nor any of its Affiliates will, prior to
Closing, enter into any transaction, which may prevent, delay or interfere with the consummation of
the transactions contemplated by this Agreement.

	13.8	 	Several Debtors

If and to the extent Seller 1, Seller 2 and Seller 3 can be held liable under this Agreement, they
shall be liable as several debtors (Teilschuldner) only and not as joint and several debtors
(Gesamtschuldner).

	13.9	 	Designee

Purchaser shall have the right to designate, before the Closing Date, an acquiring company
(“Designee”) that it controls directly or indirectly or that is controlled directly or indirectly
by a direct or indirect shareholder of Purchaser to assume all or parts of Purchaser’s rights and
obligations arising from or in connection with this Agreement, provided that Purchaser notifies
Sellers in writing of the name of the Designee at least 5 Business Days prior to the

 

 

			
	
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Closing Date. In such case, the Designee shall succeed Purchaser in such rights and obligations
arising from or in connection with this Agreement including statutory rights and obligations,
rights and obligations pursuant to the rules of culpa in contrahendo and accessory rights and
obligations (Vertragsübernahme), provided that the Designee and Purchaser shall remain joint and
several liable towards the Sellers for all obligations of Purchaser under or in connection with
this Agreement, such succession and assumption becoming effective on the date Purchaser and the
Designee submit to Sellers a written deed of accession, substantially in the form as attached as
Exhibit 13.9. The other Parties hereby accept such assumption and transfer of rights and
obligations.

	13.10	 	Severability

Should any provision of this Agreement, or any provision incorporated into this Agreement in the
future, be or become invalid or unenforceable, the validity or enforceability of the other
provisions of this Agreement shall not be affected thereby. The invalid or unenforceable provision
shall be deemed to be substituted by a suitable and equitable provision which, to the extent
legally permissible, comes as close as possible to the intent and purpose of the invalid or
unenforceable provision. The same shall apply: (i) if the Parties have, unintentionally, failed to
address a certain matter in this Agreement (Regelungslücke); in this case a suitable and equitable
provision shall, to the extent legally permissible, be deemed to have been agreed upon which comes
as close as possible to what the Parties, in the light of the intent and purpose of this Agreement,
would have agreed upon if they had considered the matter; or (ii) if any provision of this
Agreement is invalid because of the scope of any time period or performance stipulated herein; in
this case a legally permissible time period or performance shall, to the extent legally
permissible, be deemed to have been agreed which comes as close as possible to the stipulated time
period or performance.

	13.11	 	Interpretation

Terms to which a German translation has been added shall be interpreted throughout this Agreement
according to the meaning assigned to them by the German translation. In this Agreement, the term
“including” shall mean including without limitation.

SECTION 14. GOVERNING LAW, JURISDICTION, SERVICE OF PROCESS

	14.1	 	Governing Law

This Agreement shall be subject to and governed by the laws of the Federal Republic of Germany
(excluding its conflict of laws rules). The United Nations Convention on Contracts for the
International Sale of Goods (CISG) shall not apply.

	14.2	 	Jurisdiction

The courts of Frankfurt am Main, Germany, shall have the exclusive jurisdiction for all disputes
arising out of or in connection with this Agreement.

 

 

			
	
	 	36
	 	 	 

	14.3	 	Service of Process
	 
	(a)	 	Purchaser hereby appoints Latham & Watkins LLP, Maximilianstrasse 11, 80539 Munich, Germany,
to the attention of Stefan Süß and Volkmar Bruckner, as its agent for service of process
(Zustellungsbevollmächtigter) for all legal proceedings involving Purchaser arising out of or
in connection with this Agreement. This appointment shall only terminate upon the appointment
of another agent for service of process domiciled in Germany. Purchaser shall promptly after
the date hereof and upon the appointment of any new agent for service of process (as the case
may be) issue to the agent a written power of attorney (Vollmachtsurkunde) and shall
irrevocably instruct the agent to submit such deed in connection with any service of process
under this Agreement.
	 
	(b)	 	Each of Seller 2 and Seller 3 hereby appoints Heymann & Partner Rechtsanwälte, Taunusanlage
1, 60329 Frankfurt am Main, Germany, to the attention of Dr. Henning Bloss, as its agent for
service of process (Zustellungsbevollmächtigter) for all legal proceedings involving Purchaser
arising out of or in connection with this Agreement. This appointment shall only terminate
upon the appointment of another agent for service of process domiciled in Germany. Each of
Seller 2 and Seller 3 shall promptly after the date hereof and upon the appointment of any new
agent for service of process (as the case may be) issue to the agent a written power of
attorney (Vollmachtsurkunde) and shall irrevocably instruct the agent to submit such deed in
connection with any service of process under this Agreement.

***

 

 

			
	
	 	37
	 	 	 

Q-Cells SE

Frankfurt, March 22, 2010

Place, Date

	 	 	 	 	 
	 	 	 
	   /s/ Daniel Jamin
 	 	 
	Name:  	Daniel Jamin (based on Power of Attorney dated 18 Feb 2010) 	 	 
	Title:  	Attorney at Law 	 	 
	 

Renewable Energy Corporation ASA

Frankfurt, March 22, 2010

Place, Date

	 	 	 	 	 
	 	 	 
	     /s/ Eva Prinz
 	 	 
	Name:  	Eva Prinz, based on Power of Attorney dated 11 March 2010 	 	 
	Title:  	Attorney at Law 	 	 
	 

Evergreen Solar, Inc.

Frankfurt, March 22, 2010

Place, Date

	 	 	 	 	 
	 	 	 
	  /s/ Henning Bloss
 	 	 
	Name:  	Henning Bloss (based on Power of Attorney dated 24 Feb 2010) 	 	 
	Title:  	Attorney at Law 	 	 
	 

Rolling Hills S.à r.l.

Frankfurt, March 23, 2010

Place, Date

	 	 	 	 	 
	 	 	 
	/s/  Malte Iversen
 	 	 
	Name:  	Malte Iversen, based on Power of Attorney dated 8 March 2010 	 	 
	Title:  	Attorney at Law

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