Document:

EX-4.2

Exhibit 4.2

Execution Copy
 

Subsidiary Guaranty

Dated as of July 28, 2008

Re:      $40,000,000 6.39% Senior Notes, Series A, Due July 28, 2014

and

           $30,000,000 6.39% Senior Notes, Series B, Due July 28, 2013

of

BEF Holding Co., Inc.

 

 

 

Table of Contents

(Not a part of the Agreement)

	 	 	 	 	 	 	 
	Section	 	Heading	 	Page
	Parties
	 	 

	 	 	1
	Recitals
	 	 

	 	 	1
	Section 1.
	 	Definitions

	 	 2

	Section 2.
	 	Guaranty of Notes and Note Purchase Agreement

	 	 2

	Section 3.
	 	Guaranty of Payment and Performance

	 	 2

	Section 4.
	 	General Provisions Relating to the Guaranty

	 	 3

	Section 5.
	 	Representations and Warranties of the Guarantor

	 	 7

	Section 6.
	 	Amendments, Waivers, Consents and Termination

	 	 9

	Section 7.
	 	Notices

	 	 9

	Section 8.
	 	Miscellaneous

	 	10

	Signature
	 	 

	 	 	12

 

 

Subsidiary Guaranty

Re:      $40,000,000 6.39% Senior Notes, Series A, Due July 28, 2014

and

           $30,000,000 6.39% Senior Notes, Series B, Due July 28, 2013

of

BEF Holding Co., Inc.

 
 

     This Subsidiary Guaranty dated as of July 28, 2008 (the “Guaranty”) is
entered into by the undersigned, Mimi’s Café, LLC, a Delaware limited liability company
(the “Guarantor”).

 Recitals

     A. The Guarantor is an indirect Subsidiary of Bob Evans Farms, Inc., a Delaware corporation
(the “Company”).

     B. In order to raise funds to repay Indebtedness under existing bank credit facilities of the
Company and its Subsidiaries, to refinance a portion of the principal of the 2004 Senior Notes, and
for general corporate purposes, the Company and BEF Holding Co., Inc., a Delaware corporation (the
“Issuer”), have entered into the Note Purchase Agreement dated as of July 28, 2004 (as amended,
restated, supplemented or otherwise modified from time to time, the “Note Purchase Agreement”),
among the Company, the Issuer and each of the institutional investors named in Schedule A attached
thereto (the “Note Purchasers”), providing for, among other things, the issue and sale by the
Issuer to the Note Purchasers of (i) the $40,000,000 6.39% Senior Notes, Series A, due July 28,
2014 (the “Series A Notes”) and (ii) the $30,000,000 6.39% Senior Notes, Series B, due July 28,
2013 (the “Series B Notes” and together with the Series A Notes, the “Notes”). The Note
Purchasers, together with their successors and assigns and any subsequent transferees of the Notes
in accordance with the terms of the Note Purchase Agreement, are hereinafter collectively referred
to as the “Holders.”

     C. The Note Purchasers have required as a condition of their purchase of the Notes to be
purchased by them that the Company and the Issuer cause the undersigned to enter into this Guaranty
as security for the Notes, and the Company and the Issuer have agreed to cause the undersigned to
execute this Guaranty in order to induce the Note Purchasers to purchase the Notes and thereby
benefit the Company, the Issuer and their Affiliates by providing funds to enable the Issuer to
repay such existing indebtedness and for the Issuer to have funds available for general corporate
purposes of the Company, the Issuer and their Subsidiaries.

     D. The Guarantor is engaged in related businesses with the Company and the Issuer and is
desirous that the Note Purchasers enter into the Note Purchase Agreement and purchase the Notes,
and acknowledges that by doing so the Note Purchasers will be conferring substantial financial and
other benefits on the Guarantor.

 

 

     Now, Therefore, as required by the Note Purchase Agreement and in consideration of
the premises and other good and valuable consideration, the receipt and sufficiency whereof are
hereby acknowledged, the Guarantor does hereby covenant and agree, jointly and severally with any
other guarantor of such obligations, as follows:

Section 1. Definitions.

     Capitalized terms used herein shall have the meanings set forth in the Note Purchase Agreement
unless herein defined or the context shall otherwise require.

Section 2. Guaranty of Notes and Note Purchase Agreement. 

     (a) The Guarantor does hereby irrevocably, absolutely and unconditionally guarantee unto the
Holders: (1) the full and prompt payment of the principal of, Make-Whole Amount, if any, and
interest on the Notes from time to time outstanding, as and when such payments shall become due and
payable, whether by lapse of time, upon redemption or prepayment, by extension or by acceleration
or declaration or otherwise (including (to the extent legally enforceable) interest due on overdue
payments of principal, Make-Whole Amount, if any, and interest) in Federal or other immediately
available funds of the United States of America which at the time of payment or demand therefor
shall be legal tender for the payment of public and private debts, (2) the full and prompt
performance and observance by the Issuer of each and all of the obligations, covenants and
agreements required to be performed or owed by the Issuer under the terms of the Notes and the Note
Purchase Agreement and (3) the full and prompt payment, upon demand by any Holder, of all costs and
expenses, legal or otherwise (including reasonable attorneys’ fees), if any, as shall have been
expended or incurred in the protection or enforcement of any rights, privileges or liabilities in
favor of the Holders under or in respect of the Notes, the Note Purchase Agreement or in any action
in connection therewith or herewith and in each and every case irrespective of the validity,
regularity, or enforcement of any of the Notes or Note Purchase Agreement or any of the terms
thereof or any other like circumstance or circumstances.

     (b) The liability of the Guarantor under this Guaranty shall not exceed an amount equal to a
maximum amount as will, after giving effect to such maximum amount and all other liabilities of the
Guarantor, contingent or otherwise, result in the performance of the obligations of the Guarantor
hereunder not constituting a fraudulent transfer, obligation or conveyance and will in no event
exceed an amount which can be guaranteed by the Guarantor under applicable Federal and state law
relating to insolvency of debtors.

Section 3. Guaranty of Payment and Performance. 

     This is a guarantee of payment and performance and the Guarantor hereby waives, to the fullest
extent permitted by law, any right to require that any action on or in respect of any Note or the
Note Purchase Agreement be brought against the Issuer or any other Person or that resort be had to
any direct or indirect security for the Notes or for this Guaranty or any other remedy. Any Holder
may, at its option, proceed hereunder against the Guarantor in the first

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instance to collect monies when due, the payment of which is guaranteed hereby, without first
proceeding against the Issuer or any other Person and without first resorting to any direct or
indirect security for the Notes or for this Guaranty or any other remedy. The liability of the
Guarantor hereunder shall in no way be affected or impaired by any acceptance by any Holder of any
direct or indirect security for, or other guaranties of, any Indebtedness, liability or obligation
of the Issuer or any other Person to any Holder or by any failure, delay, neglect or omission by
any Holder to realize upon or protect any such guarantees, Indebtedness, liability or obligation or
any notes or other instruments evidencing the same or any direct or indirect security therefor or
by any approval, consent, waiver, or other action taken, or omitted to be taken by any such Holder.

Section 4. General Provisions Relating to the Guaranty.

     (a) The Guarantor hereby consents and agrees that any Holder or Holders from time to time may,
without in any manner affecting the liability of the Guarantor under this Guaranty, and upon such
terms and conditions as any such Holder or Holders may deem advisable:

     (1) extend in whole or in part (by renewal or otherwise), modify, increase, change,
compromise, release or extend the duration of the time for the performance or payment of any
Indebtedness, liability or obligation of the Issuer or of any other Person secondarily or
otherwise liable for any Indebtedness, liability or obligations of the Issuer on the Notes,
or waive any Default with respect thereto, or waive, modify, amend or change any provision
of any other agreement or this Guaranty (to the extent permitted by Section 6); or

     (2) sell, release, surrender, modify, impair, exchange or substitute any and all
property, of any nature and from whomsoever received, held by, or for the benefit of, any
such Holder as direct or indirect security for the payment or performance of any
Indebtedness, liability or obligation of the Issuer or of any other Person secondarily or
otherwise liable for any Indebtedness, liability or obligation of the Issuer on the Notes;
or

     (3) settle, adjust or compromise any claim of the Issuer against any other Person
secondarily or otherwise liable for any Indebtedness, liability or obligation of the Issuer
on the Notes.

     The Guarantor hereby ratifies and confirms any such extension, renewal, change, sale, release,
waiver, surrender, exchange, modification, amendment, impairment, substitution, settlement,
adjustment or compromise and that the same shall be binding upon it, and hereby waives, to the
fullest extent permitted by law, any and all defenses, counterclaims or offsets which it might or
could have by reason thereof, it being understood that the Guarantor shall at all times be bound by
this Guaranty and remain liable hereunder.

     (b) The Guarantor hereby waives, to the fullest extent permitted by law:

     (1) notice of acceptance of this Guaranty by the Holders or of the creation, renewal or
accrual of any liability of the Issuer, present or future, or of the reliance of

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such Holders upon this Guaranty (it being understood that all Indebtedness, liabilities and
obligations described in Section 2 hereof shall conclusively be presumed to have been
created, contracted or incurred in reliance upon the execution of this Guaranty); and

     (2) demand of payment by any Holder from the Issuer or any other Person indebted in any
manner on or for any of the Indebtedness, liabilities or obligations hereby guaranteed; and

     (3) presentment for the payment by any Holder or any other Person of the Notes or any
other instrument, protest thereof and notice of its dishonor to any party thereto and to the
Guarantor.

     The obligations of the Guarantor under this Guaranty and the rights of any Holder to enforce
such obligations by any proceedings, whether by action at law, suit in equity or otherwise, shall
not be subject to any reduction, limitation, impairment or termination, whether by reason of any
claim of any character whatsoever or otherwise and shall not be subject to any defense, set-off,
counterclaim (other than any compulsory counterclaim), recoupment or termination whatsoever.

     (c) The obligations of the Guarantor hereunder shall be binding upon the Guarantor and its
successors and assigns, and shall remain in full force and effect irrespective of:

     (1) the genuineness, validity, regularity or enforceability of the Notes, the Note
Purchase Agreement or any other agreement or any of the terms of any thereof, the
continuance of any obligation on the part of the Issuer, any other guarantor or any other
Person on or in respect of the Notes or under the Note Purchase Agreement or any other
agreement or the power or authority or the lack of power or authority of the Issuer to issue
the Notes or the Company or the Issuer to execute and deliver the Note Purchase Agreement or
any other agreement or to perform any of its obligations hereunder or the existence or
continuance of the Issuer or any other Person as a legal entity; or

     (2) any default, failure or delay, willful or otherwise, in the performance by the
Issuer or any other Person of any obligations of any kind or character whatsoever under the
Notes, the Note Purchase Agreement or any other agreement; or

     (3) any creditors’ rights, bankruptcy, receivership or other insolvency proceeding of
the Issuer, any other guarantor or any other Person or in respect of the property of the
Issuer, any other guarantor or any other Person or any merger, consolidation,
reorganization, dissolution, liquidation, the sale of all or substantially all of the assets
of or winding up of the Issuer, any other guarantor or any other Person; or

     (4) impossibility or illegality of performance on the part of the Issuer, any other
guarantor or any other Person of its obligations under the Notes, the Note Purchase
Agreement or any other agreements; or

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     (5) in respect of the Issuer, any other guarantor or any other Person, any change of
circumstances, whether or not foreseen or foreseeable, whether or not imputable to the
Issuer, any other guarantor or any other Person, or other impossibility of performance
through fire, explosion, accident, labor disturbance, floods, droughts, embargoes, wars
(whether or not declared), civil commotion, acts of God or the public enemy, delays or
failure of suppliers or carriers, inability to obtain materials, action of any federal or
state regulatory body or agency, change of law or any other causes affecting performance, or
any other force majeure, whether or not beyond the control of the Issuer, any other
guarantor or any other Person and whether or not of the kind hereinbefore specified; or

     (6) any attachment, claim, demand, charge, Lien, order, process, encumbrance or any
other happening or event or reason, similar or dissimilar to the foregoing, foreseen or
unforeseen, and whether or not valid, incurred by or against the Issuer or any other Person
or any claims, demands, charges or Liens of any nature, foreseen or unforeseen, incurred by
any Person, or against any sums payable in respect of the Notes or under the Note Purchase
Agreement or this Guaranty, so that such sums would be rendered inadequate or would be
unavailable to make the payments herein provided; or

     (7) any order, judgment, decree, ruling or regulation (whether or not valid) of any
court of any nation or of any political subdivision thereof or any body, agency, department,
official or administrative or regulatory agency of any thereof or any other action,
happening, event or reason whatsoever which shall delay, interfere with, hinder or prevent,
or in any way adversely affect, the performance by the Issuer or any other Person of its
respective obligations under or in respect of the Notes, the Note Purchase Agreement or any
other agreement; or

     (8) the failure of the Guarantor to receive any benefit from or as a result of its
execution, delivery and performance of this Guaranty; or

     (9) any failure or lack of diligence in collection or protection, failure in
presentment or demand for payment, protest, notice of protest, notice of default and of
nonpayment, any failure to give notice to the Guarantor of failure of the Issuer, any other
guarantor or any other Person to keep and perform any obligation, covenant or agreement
under the terms of the Notes, the Note Purchase Agreement or any other agreement or failure
to resort for payment to the Issuer, any other guarantor or to any other Person or to any
other guaranty or to any property, security, Liens or other rights or remedies; or

     (10) the acceptance of any additional security or other guaranty, the advance of
additional money to the Issuer or any other Person, the renewal or extension of the Notes or
amendments, modifications, consents or waivers with respect to the Notes, the Note Purchase
Agreement or any other agreement, or the sale, release, substitution or exchange of any
security for the Notes; or

     (11) any change in the ownership of any shares or other equity interests of the Issuer,
the Guarantor, any other guarantor or any other Person; or

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     (12) any defense whatsoever that: (i) the Issuer or any other Person might have to the
payment of the Notes (principal, Make-Whole Amount, if any, or interest), other than payment
thereof in Federal or other immediately available funds, or (ii) the Issuer or any other
Person might have to the performance or observance of any of the provisions of the Notes,
the Note Purchase Agreement or any other agreement, whether through the satisfaction or
purported satisfaction by the Issuer, any other guarantor or any other Person of its debts
due to any cause such as bankruptcy, insolvency, receivership, merger, consolidation,
reorganization, dissolution, liquidation, winding-up or otherwise; or

     (13) any act or failure to act with regard to the Notes, the Note Purchase Agreement,
this Guaranty or any other agreement or anything which might vary the risk of the Guarantor
or any other Person; or

     (14) any other circumstance which might otherwise constitute a defense available to, or
a discharge of, the Guarantor or any other Person in respect of the obligations of the
Guarantor or other Person under this Guaranty or any other agreement other than the final
and indefeasible payment in full in cash of the Notes;

provided that the specific enumeration of the above-mentioned acts, failures or omissions shall not
be deemed to exclude any other acts, failures or omissions, though not specifically mentioned
above, it being the purpose and intent of this Guaranty that the obligations of the Guarantor shall
be absolute, irrevocable and unconditional and shall not be discharged, impaired or varied except
by the payment of the principal of, Make-Whole Amount, if any, or any other premium, and interest
on the Notes in accordance with their respective terms whenever the same shall become due and
payable as in the Notes provided and all other sums due and payable under the Note Purchase
Agreement, at the place specified in and all in the manner and with the effect provided in the
Notes and the Note Purchase Agreement, as each may be amended or modified from time to time.
Without limiting the foregoing, it is understood that repeated and successive demands may be made
and recoveries may be had hereunder as and when, from time to time, the Issuer shall default under
or in respect of the terms of the Notes or the Note Purchase Agreement and that notwithstanding
recovery hereunder for or in respect of any given default or defaults by the Issuer under the Notes
or the Note Purchase Agreement or the guaranty obligations of the other guarantor under the Note
Purchase Agreement, this Guaranty shall remain in full force and effect and shall apply to each and
every subsequent default.

     (d) Subject to the deemed representations by a transferee set forth in Section 14.2, all
rights of any Holder hereunder may be transferred or assigned at any time and shall be considered
to be transferred or assigned at any time or from time to time upon the transfer of any Note
whether with or without the consent of or notice to the Guarantors under this Guaranty or to the
Company or the Issuer (except as provided in Section 14 of the Note Purchase Agreement).

     (e) To the extent of any payments made under this Guaranty, the Guarantor shall be subrogated
to the rights of the Holder upon whose Notes such payment was made, but the Guarantor covenants and
agrees that such right of subrogation shall be subordinate in right of payment to the prior
indefeasible final payment in cash in full of all amounts due and owing by the Issuer with respect
to the Notes and the Note Purchase Agreement, and the Guarantor shall

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not take any action to enforce such right of subrogation, and the Guarantor shall not accept any
payment in respect of such right of subrogation, until all amounts due and owing by the Issuer
under or in respect of the Notes and the Note Purchase Agreement and all amounts due and owing by
the Guarantor hereunder have indefeasibly been finally paid in cash in full. If any amount shall
be paid to the Guarantor in violation of the preceding sentence at any time prior to the later of
the indefeasible payment in cash in full of the Notes and all other amounts payable under the Notes
and this Guaranty, such amount shall be held in trust for the benefit of the Holders and shall
forthwith be paid to the Holders to be credited and applied to the amounts due or to become due
with respect to the Notes and all other amounts payable under the Note Purchase Agreement and this
Guaranty, whether matured or unmatured. The Guarantor acknowledges that it has received direct and
indirect benefits from the financing arrangements contemplated by the Note Purchase Agreement and
that the waiver set forth in this paragraph (e) is knowingly made as a result of the receipt of
such benefits.

     (f) The Guarantor agrees that to the extent the Issuer, any other guarantor or any other
Person makes any payment on any Note, which payment or any part thereof is subsequently
invalidated, voided, declared to be fraudulent or preferential, set aside, recovered, rescinded or
is required to be retained by or repaid to a trustee, receiver, or any other Person under any
bankruptcy code, common law, or equitable cause, then and to the extent of such payment, the
obligation or the part thereof intended to be satisfied shall be revived and continued in full
force and effect with respect to the Guarantor’s obligations hereunder, as if said payment had not
been made. The liability of the Guarantor hereunder shall not be reduced or discharged, in whole
or in part, by any payment to any Holder from any source that is thereafter paid, returned or
refunded in whole or in part by reason of the assertion of a claim of any kind relating thereto,
including, but not limited to, any claim for breach of contract, breach of warranty, preference,
illegality, invalidity, or fraud asserted by any account debtor or by any other Person.

     (g) No Holder shall be under any obligation: (1) to marshall any assets in favor of the
Guarantor or in payment of any or all of the liabilities of the Company under or in respect of the
Notes or the obligations of the Guarantor hereunder or (2) to pursue any other remedy that the
Guarantor may or may not be able to pursue itself and that may lighten the Guarantor’s burden, any
right to which the Guarantor hereby expressly waives.

     (h) The obligations of the Guarantor under this Guaranty rank pari passu in right of payment
with all other Indebtedness of the Guarantor which is not secured or which is not expressly
subordinated in right of payment to any other Indebtedness of the Guarantor.

Section 5. Representations and Warranties of the Guarantor. 

     The Guarantor represents and warrants to each Holder that:

     (a) The Guarantor is a limited liability company duly organized, validly existing and in good
standing under the laws of its jurisdiction of organization, and is duly qualified as a foreign
limited liability company and is in good standing in each jurisdiction in which such qualification
is required by law, other than those jurisdictions as to which the failure to be so qualified or in
good standing could not, individually or in the aggregate, reasonably be expected

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to have a material adverse effect on (1) the ability of the Guarantor to perform its
obligations under this Guaranty, or (2) the validity or enforceability of this Guaranty (herein in
this Section 5, a “Material Adverse Effect”). The Guarantor has the power and authority to own or
hold under lease the properties it purports to own or hold under lease, to transact the business it
transacts, to execute and deliver this Guaranty and to perform the provisions hereof.

     (b) This Guaranty has been duly authorized by all necessary organizational action on the part
of the Guarantor or the Company, as the case may be, and this Guaranty constitutes a legal, valid
and binding obligation of the Guarantor enforceable against the Guarantor in accordance with its
terms, except as such enforceability may be limited by (1) applicable bankruptcy, insolvency,
reorganization, moratorium, fraudulent transfer or conveyance or other similar laws affecting the
enforcement of creditors’ rights generally and (2) general principles of equity (regardless of
whether such enforceability is considered in a proceeding in equity or at law).

     (c) The execution, delivery and performance by the Guarantor of this Guaranty will not
(1) contravene, result in any breach of, or constitute a default under, or result in the creation
of any Lien in respect of any property of the Guarantor under its corporate charter or by-laws, or
other equivalent formation or governing document, or except for contraventions, breaches or
defaults which could not, individually or in the aggregate, reasonably be expected to have a
Material Adverse Effect, under any indenture, mortgage, deed of trust, loan, purchase or credit
agreement, lease, or any other agreement or instrument to which the Guarantor or any of its
subsidiaries is bound or by which the Guarantor or any of its subsidiaries or any of their
respective properties may be bound or affected, (2) conflict with or result in a breach of any of
the terms, conditions or provisions of any order, judgment, decree, or ruling of any court,
arbitrator or Governmental Authority applicable to the Guarantor or (3) violate any provision of
any statute or other rule or regulation of any Governmental Authority applicable to the Guarantor.

     (d) No consent, approval or authorization of, or registration, filing or declaration with, any
Governmental Authority is required in connection with the execution, delivery or performance by the
Guarantor of this Guaranty.

     (e) Subject to the limitation set forth in Section 2(b) of this Guaranty, the
Guarantor has assets which exceed the aggregate amount of its liabilities, has capital not
unreasonably small in relation to its business or any contemplated or undertaken transaction and
has assets having a value both at fair valuation and at present fair salable value (under normal
business conditions) greater than the amount required to pay its liabilities (including contingent
and unliquidated liabilities) as they become due and greater than the amount that will be required
to pay its probable liability on its existing liabilities as they become absolute and matured. The
Guarantor does not intend to incur, or believe that it will incur, debts beyond its ability to pay
such debts as they become due. Subject to the limitation set forth in Section 2(b) of this
Guaranty, the Guarantor will not be rendered insolvent by the execution and delivery of, and
performance of its obligations under, this Guaranty. The Guarantor does not intend to hinder,
delay or defraud its creditors by or through the execution and delivery of, or performance of its
obligations under, this Guaranty.

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Section 6. Amendments, Waivers, Consents and Termination.

     (a) This Guaranty may be amended, and the observance of any term hereof may be waived (either
retroactively or prospectively), with (and only with) the written consent of the Guarantor and the
Required Holders, except that (1) no amendment or waiver of any of the provisions of Section 2, 3
or 4, or any defined term (as it is used therein), will be effective as to any Holder unless
consented to by such Holder in writing, and (2) no such amendment or waiver may, without the
written consent of each Holder, (i) change the percentage of the principal amount of the Notes the
Holders of which are required to consent to any such amendment or waiver, or (ii) amend this
Section 6.

     (b) The Guarantor will provide each Holder (irrespective of the amount of Notes then owned by
it) with sufficient information, sufficiently far in advance of the date a decision is required, to
enable such Holder to make an informed decision with respect to any proposed amendment, waiver or
consent in respect of any of the provisions hereof. The Guarantor will deliver executed or true
and correct copies of each amendment, waiver or consent effected pursuant to the provisions of this
Section 6 to each Holder promptly following the date on which it is executed and delivered by, or
receives the consent or approval of, the requisite Holders.

     (c) The Guarantor agrees it will not directly or indirectly pay or cause to be paid any
remuneration, whether by way of fee or otherwise, or grant any security, to any Holder as
consideration for or as an inducement to the entering into by any Holder of any waiver or amendment
of any of the terms and provisions hereof unless such remuneration is concurrently paid, or
security is concurrently granted, on the same terms, ratably to each Holder even if such Holder did
not consent to such waiver or amendment.

     (d) Any amendment or waiver consented to as provided in this Section 6 applies equally to all
Holders and is binding upon them and upon each future holder and upon the Guarantor. No such
amendment or waiver will extend to or affect any obligation, covenant or agreement not expressly
amended or waived or impair any right consequent thereon. No course of dealing between the
Guarantor and any Holder nor any delay in exercising any rights hereunder shall operate as a waiver
of any rights of any Holder. As used herein, the term “this Guaranty” and references thereto shall
mean this Guaranty as it may from time to time be amended or supplemented.

     (e) Subject to Section 4(f), this Guaranty shall automatically terminate and the Guarantor
shall cease to have any obligations hereunder when all amounts due by the Issuer in respect of the
Notes have been paid in full in cash.

Section 7. Notices.

     All notices and communications provided for hereunder shall be in writing and sent (a) by
telefacsimile if the sender on the same day sends a confirming copy of such notice by a recognized
overnight delivery service (charges prepaid), or (b) by a recognized overnight delivery service
(with charges prepaid). Any such notice must be sent:

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     (1) if to a Note Purchaser, to such Note Purchaser at the address specified for such
communications on Schedule A to the Note Purchase Agreement, or at such other address as
such Note Purchaser shall have specified to the Guarantor or the Company in writing,

     (2) if to any other Holder, to such Holder at such address as such Holder shall have
specified to the Guarantor or the Company in writing, or

     (3) if to a Guarantor, to the Guarantor c/o Bob Evans Farms, Inc., 3776 S. High Street,
Columbus, Ohio 43207, to the attention of the Chief Financial Officer, or at such other
address as the Guarantor shall have specified to the Holders in writing.

Notices under this Section 7 will be deemed given only when actually received (whether or not
accepted).

Section 8. Miscellaneous.

     (a) No remedy herein conferred upon or reserved to any Holder is intended to be exclusive of
any other available remedy or remedies, but each and every such remedy shall be cumulative and
shall be in addition to every other remedy given under this Guaranty now or hereafter existing at
law or in equity. No delay or omission to exercise any right or power accruing upon any default,
omission or failure of performance hereunder shall impair any such right or power or shall be
construed to be a waiver thereof but any such right or power may be exercised from time to time and
as often as may be deemed expedient. In order to entitle any Holder to exercise any remedy
reserved to it under the Guaranty, it shall not be necessary for such Holder to physically produce
its Note in any proceedings instituted by it or to give any notice, other than such notice as may
be herein expressly required.

     (b) The Guarantor will pay all sums becoming due under this Guaranty by the method and at the
address specified for such purpose in the Note Purchase Agreement, or by such other reasonable
method or at such other address as any Holder shall have from time to time specified to the
Guarantor in writing for such purpose, without the presentation or surrender of this Guaranty or
any Note.

     (c) Any provision of this Guaranty that is prohibited or unenforceable in any jurisdiction
shall, as to such jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall (to the full extent permitted by law) not invalidate or
render unenforceable such provision in any other jurisdiction.

     (d) This Guaranty shall be binding upon the Guarantor and its successors and assigns and shall
inure to the benefit of each Holder and its successors and assigns (including, without limitation,
any subsequent holder of a Note) whether so expressed or not, so long as its Notes remain
outstanding and unpaid.

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     (e) This Guaranty may be executed in any number of counterparts, each of which shall be an
original but all of which together shall constitute one instrument. Each counterpart may consist
of a number of copies hereof, each signed by less than all, but together signed by all, of the
parties hereto.

     (f) This Guaranty shall be construed and enforced in accordance with, and the rights of the
parties shall be governed by the law of the State of New York.

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     In Witness Whereof, the undersigned has caused this Guaranty to be
duly executed by an authorized representative as of date first written above.

	 	 	 	 	 
	 	Mimi’s Café, LLC

 	 
	 	By:  	/s/Tod P. Spornhauer
 	 
	 	 	Name:  	Tod P. Spornhauer 	 
	 	 	Title:  	Manager, Assistant Treasurer and 

Assistant Secretary 	 
	 

-12-exv10w1

Exhibit 10.1

Execution Copy

EMPLOYMENT AGREEMENT

          This Employment Agreement (this “Agreement”) is made as of May 5, 2008, by and between First
Solar, Inc., a Delaware corporation having its principal office at 4050 East Cotton Center
Boulevard, Building 6, Suite 68, Phoenix, Arizona 85040 (hereinafter “Employer”) and John
Carrington (hereinafter “Employee”).

WITNESSETH:

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

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

ARTICLE I. Employment

1.1 Term; At-Will Nature of Employment. The term of this Agreement (the “Term”) shall
commence as of May 5, 2008 (the “Start Date”). As of such date, Employer shall employ Employee as
a full-time, at-will employee, and Employee shall accept employment with Employer as a full-time,
at-will employee. Employer or Employee may terminate this Agreement at any time and for any
reason, with or without cause and with or without notice, subject to the provisions of this
Agreement.

1.2 Position and Duties of Employee. Employer hereby employs Employee in the initial
capacity of Executive Vice President, Global Marketing and Business Development for First Solar and
Employee hereby accepts such position. Employee agrees to diligently and faithfully perform such
duties as may from time to time be assigned to Employee by Employer’s Chief Executive Officer or
Employer’s Board of Directors (the “Board”), consistent with Employee’s position with Employer.
Employee recognizes the necessity for established policies and procedures pertaining to Employer’s
business operations, and Employer’s right to change, revoke or supplement such policies and
procedures at any time, in Employer’s sole discretion. Employee agrees to comply with such
policies and procedures, including those contained in any manuals or handbooks, as may be amended
from time to time in the sole discretion of Employer.

1.3 No Salary or Benefits Continuation Beyond Termination. Except as may be required by
applicable law or as otherwise specified in this Agreement or the Change in Control Severance
Agreement between Employer and Employee dated as of the date hereof (the “Change in Control
Agreement”), Employer shall not be liable to Employee for any salary or benefits continuation
beyond the date of Employee’s cessation of employment with Employer. The rights and obligations
set forth in Section 1.5 and Articles IV and V of this Agreement shall survive termination of
Employee’s employment and termination of this Agreement.

 

 

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

1.5 Severance Payments and Vacation Pay.

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

          (b) Severance Payments in the Case of a Termination Without Cause Pursuant to Section
1.4(e). If Employee’s employment is terminated by Employer pursuant to Section 1.4(e)
(termination without cause), then, subject to the Change in Control Agreement, Employee shall be
entitled to severance pay equal to one (1) times the Base Salary (as hereinafter defined) in effect
as of the date of termination of employment payable in accordance with Employer’s regular payroll
practices commencing on the first payroll date on or following the 61st day following the date of
termination. Severance payments shall be reduced by any compensation that Employee earns during
the twelve (12) months following such termination of employment. Employee agrees to notify
Employer of the amounts of such compensation earned. Severance payments shall be subject to any
applicable tax withholding requirements. Notwithstanding anything to the contrary herein, no
severance payments shall be due or made to Employee hereunder unless, on or prior to the sixtieth
(60th) day following the date of termination of employment, (i) Employee shall have executed and
delivered a general release in favor of

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Employer and its affiliates, which shall be substantially in the form of the Separation
Agreement and Release attached hereto as Exhibit A and otherwise satisfactory to Employer
and (ii) such general release has become effective and irrevocable (the date such release is
effective and irrevocable, the “Release Effective Date”).

          (c) Medical Insurance. If Employee’s employment is terminated by Employer pursuant to
Section 1.4(e) (termination without cause), Employer will provide or pay for Employee’s medical
insurance benefits at the same or a comparable level as provided by Employer during Employee’s
employment, for a period beginning on the date of termination and ending on the earlier of (i) the
date that is twelve (12) months following such termination and (ii) the date that Employee is
covered under a medical benefits plan of a subsequent employer. Except as permitted by Section
409A (as defined below), the continued benefits provided to Employee pursuant to this Section
1.5(c) during any calendar year will not affect the continued benefits to be provided to Employee
pursuant to this Section 1.5(c) in any other calendar year.

          (d) Vesting. In the event of (i) the termination of Employee’s employment with
Employer due to death under Section 1.4(a), (ii) the termination of Employee’s employment with
Employer due to disability under Section 1.4(b) or (iii) the termination of Employee’s employment
by Employer without cause under Section 1.4(e), Employee shall immediately receive an additional
twelve (12) months of vesting credit with respect to Employee’s stock options, stock appreciation
rights, restricted stock and any other equity or equity-based compensation. The shares underlying
any restricted stock units that become vested pursuant to this Section 1.5(d) shall be payable on
the date of Employee’s termination of employment. Any of Employee’s stock options and stock
appreciation rights that become vested pursuant to this Section 1.5(d) shall be exercisable
immediately upon vesting, and any such stock options and stock appreciation rights and any of
Employee’s stock options and stock appreciation rights that are otherwise vested and exercisable as
of Employee’s termination of employment shall remain exercisable for 12 months following Employee’s
termination of employment, provided that, if during such period Employee is under any trading
restriction due to a lockup agreement or closed trading window, such period shall be tolled during
the period of such trading restriction. In the event the terms of this Agreement are contrary to
or conflict with the terms of any document or agreement addressing Employee’s stock options,
restricted stock, restricted stock units or any other equity compensation, the terms of this
Agreement shall govern and control; provided that, notwithstanding anything to the contrary herein,
in no event shall any stock option or stock appreciation right continue to be exercisable after the
original expiration date of such stock option or stock appreciation right.

ARTICLE II. Compensation

2.1 Sign on Bonus. Subject to applicable tax withholding requirements, Employee shall
receive a One Hundred Fifty Thousand and 00/100 Dollar ($150,000) sign on bonus payable on the
first payroll date of the Term.

2.2 Base Salary. Employee shall be compensated at an annual base salary of Four Hundred
Thousand and 00/100 Dollars ($400,000) (the “Base Salary”) while Employee is employed by Employer
under this Agreement, subject to such annual increases that Employer

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may, in its sole discretion, determine to be appropriate. Such Base Salary shall be paid in
accordance with Employer’s standard policies and shall be subject to applicable tax withholding
requirements.

2.3 Annual Bonus Eligibility. Employee shall be eligible to receive an annual bonus of up
to eighty percent (80%) of Employee’s Base Salary based upon individual and company performance, as
determined by Employer in its sole discretion. The specific bonus eligibility and the standards
for earning a bonus will be developed by Employer and communicated to Employee as soon as
practicable after the beginning of each year.

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

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

2.6 Grant of Equity.

          (a) Eligibility. Employee will be eligible to participate in Employer’s equity
participation programs to acquire options or equity incentive compensation units in the common
stock of Employer, subject to and/or in accordance with the following: (i) the additional terms
contained in Employer’s equity grant documentation; (ii) approval, if required, of Employer’s
equity incentive plan by the Board and the shareholders of Employer; (iii) approval of the grants
by the Board; (iv) Employee’s execution of documents requested by Employer at the time of grant;
(v) Employee’s continued employment through the grant date; (vi) the terms of the 2006 Omnibus
Equity Incentive Compensation Plan or the successor thereto; and (vii) the policies, procedures and
practices that may be adopted from time to time by Employer in its sole discretion for granting
such options or equity incentive compensation units.

          (b) Hiring Grant. Promptly following the Start Date, but subject to Board approval,
Employee will receive a one time grant of seventeen thousand five hundred (17,500) restricted stock
units, which shall vest, contingent on continued employment, in accordance with the terms of the
restricted stock unit grant.

2.7 Location. Employee’s position will be based in Phoenix, Arizona.

ARTICLE III.  Absence of Restrictions

3.1 Employee hereby represents and warrants to Employer that Employee has full power, authority and
legal right to enter into this Agreement and to carry out all obligations and duties hereunder and
that the execution, delivery and performance by Employee of this Agreement will not violate or
conflict with, or constitute a default under, any agreements or other understandings to which
Employee is a party or by which Employee may be bound or

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affected, including any order, judgment or decree of any court or governmental agency. Employee
further represents and warrants to Employer that Employee is free to accept employment with
Employer as contemplated herein and that Employee has no prior or other obligations or commitments
of any kind to any person, firm, partnership, association, corporation, entity or business
organization that would in any way hinder or interfere with Employee’s acceptance of, or the full
performance of, Employee’s duties hereunder.

ARTICLE IV. Miscellaneous

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

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

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

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

	 	 	 	 	 
	 

	 	If to Employer:
	 	First Solar, Inc.
	 

	 	 	 	28101 Cedar Park Blvd
	 

	 	 	 	Perrysburg, OH 43551
	 

	 	 	 	Attention: Human Resources
	 
	 	 	 	 
	 

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

	 	 	 	Employer

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

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

4.6 Entire Agreement. This Agreement, the Change in Control Agreement, the Non-Competition
Agreement and the Confidentiality Agreement set forth the entire agreement between Employer and
Employee regarding the terms of Employee’s employment and supersede all prior agreements between
Employer and Employee covering the terms of Employee’s employment. This Agreement may not be
amended or modified except in a written instrument signed by Employer and Employee identifying this
Agreement and stating the intention to amend or modify it.

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

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

ARTICLE V. Section 409A

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

5.2 No Alienation, Set-offs, Etc. Neither Employee nor any creditor or beneficiary of
Employee shall have the right to subject any deferred compensation (within the meaning of Section
409A) payable under this Agreement or under any other plan, policy, arrangement or

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agreement of or with Employer or any of its affiliates (this Agreement and such other plans,
policies, arrangements and agreements, the “Employer Plans”) to any anticipation, alienation, sale,
transfer, assignment, pledge, encumbrance, attachment or garnishment. Except as permitted under
Section 409A, any deferred compensation (within the meaning of Section 409A) payable to or for the
benefit of Employee under any Employer Plan may not be reduced by, or offset against, any amount
owing by Employee to Employer or any of its affiliates.

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

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

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

	 	 	 	 	 
	 	 	EMPLOYEE:
	 
	 	 	 	 
	 	 	/s/ John Carrington
	 	 	 
	 	 	John Carrington
	 
	 	 	 	 
	 	 	EMPLOYER:
	 
	 	 	 	 
	 	 	First Solar, Inc.
	 
	 	 	 	 
	 

	 	By: /s/ Michael Ahearn
	 

	
 

	 
	 	 	 	 
	 

	 	Name Printed:
	 	Michael Ahearn
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Title: CEO

	 

	 	 

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Exhibit A

SEPARATION AGREEMENT AND RELEASE

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

The undersigned affirms that he/she has not filed or caused to be filed, and presently is not a
party to, any Claim, complaint or action against any Released Party in any forum or form and that
he/she knows of no facts which may lead to any Claim, complaint or action being filed against any
Released Party in any forum by the undersigned or by any agency, group, or class persons. The
undersigned further affirms that he/she has been paid and/or has received all leave (paid or
unpaid), compensation, wages, bonuses, commissions, and/or benefits to which he/she may be entitled
and that no other leave (paid or unpaid), compensation, wages, bonuses, commissions and/or benefits
are due to him/her from the Company and its subsidiaries, except as specifically provided in this
Separation Agreement and Release. The undersigned furthermore affirms that he/she has no known

 

 

workplace injuries or occupational diseases and has been provided and/or has not been denied any
leave requested under the FMLA. If any agency or court assumes jurisdiction of any such Claim,
complaint or action against any Released Party on behalf of the undersigned, the undersigned will
request such agency or court to withdraw the matter.

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

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

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

IV. Return of Property. The undersigned shall return to the Company on or before [10 DAYS
AFTER TERMINATION DATE], all property of the Company in the undersigned’s possession or subject to
the undersigned’s control, including without limitation any laptop computers, keys, credit cards,
cellular telephones and files. The undersigned shall not alter any of the Company’s records or
computer files in any way after [TERMINATION DATE].

9

 

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

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

Effective on the eighth calendar day following the date set forth below.

FIRST SOLAR, INC.

	 	 	 	 	 
	By

	 	      Sample	 	 
	 

	 	 

      Name:
	 	 
	 

	 	     Title:	 	 
	 
	 	 	 	 
	EMPLOYEE:	 	 
	 
	 	 	 	 
	By

	 	     Sample	 	 
	 

	 	 	 	 
	 

	 	     [NAME]	 	 
	 

	 	     Date	 	 
	 

	 	     Signed: sample	 	 

10

 

NON-COMPETITION AND NON-SOLICITATION AGREEMENT

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

     This Non-Competition and Non-Solicitation Agreement (“Agreement”) is effective by and between
John Carrington (“Employee”) and First Solar, Inc. (“Employer”) as of May 5, 2008.

     Whereas, Employee desires to be employed by Employer and Employer has agreed to employ
Employee in the current position of Employee with Employer, or such other position as Employer may
from time to time determine;

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

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

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

     Therefore, Employee and Employer hereby agree as follows (THE FOLLOWING ARE IMPORTANT
RESTRICTIONS TO WHICH EMPLOYEE AGREES IN ORDER TO INDUCE EMPLOYER TO RETAIN EMPLOYEE AND WHICH,
ONCE EMPLOYEE SIGNS THIS AGREEMENT, ARE BINDING ON EMPLOYEE. BY SIGNING THIS AGREEMENT, EMPLOYEE SIGNIFIES

11

 

THAT EMPLOYEE HAS READ THESE
RESTRICTIONS CAREFULLY BEFORE SIGNING THIS AGREEMENT, UNDERSTANDS THE AGREEMENT’S TERMS, AND
ASSENTS TO ABIDE BY THESE RESTRICTIONS.):

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

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

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

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

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

     6.5 Employee and Employer acknowledge and agree that Employer has expended substantial amounts
of time, money and effort to develop business

12

 

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

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

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

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

13

 

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

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

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

	 	 	 	 	 
	 

	 	If to Employer:
	 	     First Solar, Inc.
	 

	 	 	 	4050 East Cotton Center Boulevard
	 

	 	 	 	Building 6, Suite 68
	 

	 	 	 	Phoenix, Arizona 85040
	 

	 	 	 	Attention: Chief Executive Officer
	 

	 	 	 	Fax: (602) 414-9400
	 
	 	 	 	 
	 

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

Employer

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

14

 

forth in this Agreement, legal,
equitable or otherwise, shall not be exclusive but shall be cumulative upon all other rights and
remedies allowed or by law, including the recovery of money damages. The failure of Employer to
enforce any of the provisions of this Agreement, or the provisions of any agreement with any other
Employee, shall not constitute a waiver or limit any of Employer’s rights.

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

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

     ARTICLE XV. Entire Agreement, Modification and Assignment.

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

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

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

15

 

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

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

	 	 	 	 	 
	EMPLOYER:	 	EMPLOYEE:	 	 
	 
	 	 	 	 
	First Solar, inc.

	 	John Carrington
	 	 
	 
	 	 	 	 
	By: /s/ Michael Ahearn

	 	/s/ John E. Carrington	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Its: CEO

	 	Printed Name: John E. Carrington	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Printed Name: Michael Ahearn
 

	 	 	 	 

16

 

Confidentiality and Intellectual Property Agreement

	 	 	 	 	 
	Employee:

	 	John Carrington	 	 
	 
	 	 	 	 
	Place of Signing:

	 	Tempe, Arizona                          
 

	 	 
	 
	 	 	 	 
	 

	 	Date:   May 13, 2008	 	 

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

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

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

     ARTICLE III. I will assign, and do hereby assign, to the Company or the Company’s designee,
my entire right, title and interest in and to all such Developments including all trademarks,
copyrights, moral rights and mask work rights in or relating to such Developments, and any patent
applications filed and patents granted thereon including those in foreign countries; and I agree,
both during my employment by the Company and thereafter, to execute any patent or other

17

 

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

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

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

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

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

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

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

18

 

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

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

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

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

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

     ARTICLE IX. The invalidity or unenforceability of any provision of this Agreement, whether in
whole or in part, shall not in any way affect the validity and/or enforceability of any of the
other provisions of this Agreement. Any invalid or unenforceable provision or portion thereof shall
be deemed severable to the extent of any such invalidity or unenforceability. The restrictions
contained in this Agreement are reasonable for the purpose of preserving for the Company and its
affiliates the proprietary rights, intangible business value and Confidential Information of the
Company and its affiliates. If it is determined by a court of competent jurisdiction that any of
the restrictions or language in this Agreement is for any reason invalid or

19

 

unenforceable, the
parties desire and agree that the court revise any such restrictions or language so as to render it
valid and enforceable to the fullest extent allowed by law. If any restriction or language in this
Agreement is for any reason invalid or unenforceable and cannot by law be revised so as to render
it valid and enforceable, then the parties desire and agree that the court strike only the invalid
and
unenforceable language and enforce the balance of this Agreement to the fullest extent allowed
by law.

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

     ARTICLE XI. This Agreement is made in consideration of my continued employment by the
Company. I understand that the Company is under no obligation to employ me for any duration and
that my employment with the Company is terminable at the will of the Company or at my will at any
time and for any reason and without notice.

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

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

     ARTICLE XIV. This Agreement shall be governed by and construed and enforced in accordance
with the laws of the State of Delaware without reference to

20

 

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

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

	 	 	 
	EMPLOYER:

	 	EMPLOYEE:
	 
	 	 
	First solar, inc.

	 	John Carrington
	 
	 	 
	By: /s/ Michael Ahearn

	 	/s/ John E. Carrington
	 

	 	 
	 
	 	 
	Its: CEO

	 	Printed Name: John E. Carrington
	 

	 	 
	 
	 	 
	Printed Name: Michael Ahearn
	 	 
	 
	 	 

21

 

CHANGE IN CONTROL SEVERANCE AGREEMENT

          This CHANGE IN CONTROL SEVERANCE AGREEMENT (this “Agreement”), dated as of May 5,
2008, between First Solar, Inc., a Delaware corporation (the “Company”), and John
Carrington (the “Executive”).

RECITALS:

          WHEREAS the Executive is a skilled and dedicated employee of the Company who has important
management responsibilities and talents that benefit the Company;

          WHEREAS the Board of Directors of the Company (the “Board”) considers it essential to
the best interests of the Company and its stockholders to assure that the Company and its
Subsidiaries (as defined below) will have the continued dedication of the Executive,
notwithstanding the possibility, threat or occurrence of a Change in Control (as defined below);
and

          WHEREAS the Board believes that it is imperative to diminish the distraction of the Executive
by virtue of the uncertainties and risks created by the circumstances surrounding a Change in
Control and to ensure the Executive’s full attention to the Company and its Subsidiaries during
such a period of uncertainty.

          AGREEMENT:

          NOW, THEREFORE, in consideration of the mutual agreements, provisions and covenants contained
herein, and intending to be legally bound hereby, the parties hereto agree as follows:

          ARTICLE XVI. Definitions. For purposes of this Agreement, the following terms shall
have the meanings set forth below:

          16.1 “280G Gross-Up Payment” shall have the meaning set forth in Section 5(a).

          16.2 “Accounting Firm” shall have the meaning set forth in Section 5(b).

          16.3 “Accrued Rights” shall have the meaning set forth in Section 4(a)(iv).

          16.4 “Affiliate(s)” means, with respect to any specified Person, any other Person
that, directly or indirectly, through one or more intermediaries, controls, is controlled by, or is
under common control with, such specified Person.

          16.5 “Annual Base Salary” shall mean the greater of the Executive’s annual rate of
base salary in effect (i) immediately prior to the Change in Control Date
and (ii) immediately
prior to the Termination Date.

22

 

          16.6 “Annual Bonus” shall mean the target annual cash bonus the Executive is eligible
to earn (assuming one hundred percent (100%) fulfillment of all elements of the formula under which
such bonus would have been calculated) for the year in which the Termination Date occurs.

          16.7 “Bonus Amount” means, as of the Termination Date, the greater of (i) the Annual
Bonus and (ii) the average of the annual cash bonuses payable to the Executive in respect of the
three (3) calendar years immediately preceding the calendar year that includes the Termination Date
or, if the Executive has not been employed for three (3) full calendar years preceding the calendar
year that includes the Termination Date, the average of the annual cash bonuses payable to the
Executive for the number of full calendar years prior to the Termination Date that he has been
employed.

          16.8 “Cause” means the occurrence of any one of the following: (i) the Executive is
convicted of, or pleads guilty or nolo contendere to, (A) a misdemeanor involving moral turpitude
or misappropriation of the assets of the Company or a Subsidiary or (B) any felony (or the
equivalent of such a misdemeanor or felony in a jurisdiction outside of the United States);
(ii) the Executive commits one or more acts or omissions constituting gross negligence, fraud or
other gross misconduct that the Company reasonably and in good faith determines has a materially
detrimental effect on the Company; (iii) the Executive continually and willfully fails, for at
least fourteen (14) days following written notice from the Company, to perform substantially the
Executive’s employment duties (other than as a result of incapacity due to physical or mental
illness or after delivery by the Executive of a Notice of Termination for Good Reason); or (iv) the
Executive commits a gross violation of any of the Company’s material policies (including the
Company’s Code of Business Conduct and Ethics, as in effect from time to time) that the Company
reasonably and in good faith determines is materially detrimental to the best interests of the
Company. The termination of employment of the Executive for Cause shall not be effective unless
and until there has been delivered to the Executive a copy of a resolution duly adopted by the
affirmative vote of not less than a majority of the entire membership of the Board (excluding the
Executive) at a meeting of the Board called and held for such purpose (after reasonable notice is
provided to the Executive and the Executive is given an opportunity, together with counsel, to be
heard before the Board), finding that in the good faith opinion of the Board, the Executive is
guilty of the conduct described in clause (i), (ii), (iii) or (iv) above and specifying the
particulars thereof in detail.

          16.9 “Change in Control” means the occurrence of any of the following:

               (a) individuals who, as of the Effective Date, were members of the Board (the “Incumbent
Directors”) cease for any reason to constitute at least a majority of the Board;
provided, however, that any individual becoming a member of the Board subsequent to
the Effective Date whose appointment or election, or nomination for
election, by the Company’s stockholders was approved by a vote of at least a majority of the
Incumbent Directors shall be considered as though such individual were an Incumbent Director, but
excluding, for purposes of this proviso, any such individual whose assumption of office after the
Effective Date occurs as a result of an actual or

23

 

threatened proxy contest with respect to election
or removal of directors or other actual or threatened solicitation of proxies or consents by or on
behalf of any “person” (as such term is used in Section 13(d) of the Exchange Act) (each, a
“Person”) other than the Board or any Specified Shareholder;

               (b) the consummation of (A) a merger, consolidation, statutory share exchange or similar form
of corporate transaction involving (1) the Company or (2) any of its Subsidiaries, but in the case
of this clause (2) only if Company Voting Securities (as defined below) are issued or issuable in
connection with such transaction or (B) a sale or other disposition of all or substantially all the
assets of the Company (each of the events referred to in clause (A) or (B) being hereinafter
referred to as a “Reorganization”), unless, immediately following such Reorganization,
(x) all or substantially all the individuals and entities who were the “beneficial owners” (as such
term is defined in Rule 13d-3 under the Exchange Act) of shares of the Company’s common stock or
other securities eligible to vote for the election of the Board outstanding immediately prior to
the consummation of such Reorganization (such securities, the “Company Voting Securities”)
beneficially own, directly or indirectly, more than 50% of the combined voting power of the then
outstanding voting securities of the corporation or other entity resulting from such Reorganization
(including a corporation or other entity that, as a result of such transaction, owns the Company or
all or substantially all the Company’s assets either directly or through one or more subsidiaries)
(the “Continuing Entity”) in substantially the same proportions as their ownership,
immediately prior to the consummation of such Reorganization, of the outstanding Company Voting
Securities (excluding any outstanding voting securities of the Continuing Entity that such
beneficial owners hold immediately following the consummation of such Reorganization as a result of
their ownership prior to such consummation of voting securities of any corporation or other entity
involved in or forming part of such Reorganization other than the Company or a Subsidiary), (y) no
Person (excluding (i) any employee benefit plan (or related trust) sponsored or maintained by the
Continuing Entity or any corporation or other entity controlled by the Continuing Entity and
(ii) any Specified Shareholder) beneficially owns, directly or indirectly, twenty percent (20%) or
more of the combined voting power of the then outstanding voting securities of the Continuing
Entity and (z) at least a majority of the members of the board of directors or other governing body
of the Continuing Entity were Incumbent Directors at the time of the execution of the definitive
agreement providing for such Reorganization or, in the absence of such an agreement, at the time at
which approval of the Board was obtained for such Reorganization;

               (c) the stockholders of the Company approve a plan of complete liquidation or dissolution of
the Company, unless such liquidation or dissolution is part of a transaction or series of
transactions described in Section 1(i)(ii) that does not otherwise constitute a Change in Control;
or

               (d) any Person, corporation or other entity or group (within the meaning of Section 13(d)(3)
or 14(d)(2) of the Exchange Act) other than any Specified Shareholder becomes the beneficial owner,
directly or indirectly, of securities of the Company representing a percentage of the combined
voting power of the Company Voting Securities that is equal to or greater than the greater of
(A) twenty percent (20%)

24

 

and (B) the percentage of the combined voting power of the Company Voting
Securities beneficially owned directly or indirectly by all the Specified Shareholders at such
time; provided, however, that for purposes of this Section 1(i)(iv) only (and not
for purposes of Sections 1(i)(i) through (iii)), the following acquisitions shall not constitute a
Change in Control: (1) any acquisition by the Company or any Subsidiary, (2) any acquisition by any
employee benefit plan (or related trust) sponsored or maintained by the Company or any Subsidiary,
(3) any acquisition by an underwriter temporarily holding such Company Voting Securities pursuant
to an offering of such securities and (4) any acquisition pursuant to a Reorganization that does
not constitute a Change in Control for purposes of Section 1(i)(ii).

          16.10 “Change in Control Date” means the date on which a Change in Control occurs.

          16.11 “COBRA” shall have the meaning set forth in Section 4(a)(iii).

          16.12 “Code” means the Internal Revenue Code of 1986, as amended from time to time, or
any successor statute thereto, and the regulations promulgated thereunder as in effect from time to
time.

          16.13 “Company Voting Securities” shall have the meaning set forth in Section
1(i)(ii).

          16.14 “Continuing Entity” shall have the meaning set forth in Section 1(i)(ii).

          16.15 “Disability” shall have the meaning set forth in Section 4(b)(ii).

          16.16 “Effective Date” shall have the meaning set forth in Section 2.

          16.17 “Executive Tax Year” shall have the meaning set forth in Section 4(a)(iii).

          16.18 “Exchange Act” means the Securities Exchange Act of 1934, as amended from time
to time, or any successor statute thereto, and the regulations promulgated thereunder as in effect
from time to time.

          16.19 “Excise Tax” means the excise tax imposed by Section 4999 of the Code, together
with any interest or penalties imposed with respect to such tax.

          16.20 “Good Reason” means, without the Executive’s express written consent, the
occurrence of any one or more of the following:

               (a) any material reduction in the authority, duties or responsibilities held by the Executive
immediately prior to the Change in Control Date;

25

 

               (b) any material reduction in the annual base salary or annual incentive opportunity of the
Executive as in effect immediately prior to the Change in Control Date;

               (c) any change of the Executive’s principal place of employment to a location more than fifty
(50) miles from the Executive’s principal place of employment immediately prior to the Change in
Control Date;

               (d) any failure of the Company to pay the Executive any compensation when due;

               (e) delivery by the Company or any Subsidiary of a written notice to the Executive of the
intent to terminate the Executive’s employment for any reason, other than Cause, death or
Disability, in each case in accordance with this Agreement, regardless of whether such termination
is intended to become effective during or after the Protection Period; or

               (f) any failure by the Company to comply with and satisfy the requirements of Section 10(c).

          The Executive’s right to terminate employment for Good Reason shall not be affected by the
Executive’s incapacity due to physical or mental illness. A termination of employment by the
Executive for Good Reason for purposes of this Agreement shall be effectuated by giving the Company
written notice (“Notice of Termination for Good Reason”) of the termination setting forth
in reasonable detail the specific conduct of the Company that constitutes Good Reason and the
specific provisions of this Agreement on which the Executive relied, provided that such
notice must be delivered to the Company no later than ninety (90) days after the occurrence of the
event or events constituting Good Reason and the Company must be provided with at least thirty (30)
days following the delivery of such Notice of Termination for Good Reason to cure such event or
events. If such event or events are cured during such period, then the Executive will not be
permitted to terminate employment for Good Reason as the result of such event or events. If the
Company does not cure such event or events in such period, the termination of employment by the
Executive for Good Reason shall be effective on the thirtieth (30th) day following the
date when the Notice of Termination for Good Reason is given, unless the Company elects to treat
such termination as effective as of an earlier date; provided, however, that so
long as an event that constitutes Good Reason occurs during the Protection Period and the Executive
delivers the Notice of Termination for Good Reason within ninety (90) days following the occurrence
of such event, the Company is provided with at least thirty (30) days following the delivery of
such Notice of Termination for Good Reason to cure such event, and the Executive terminates his
employment as of the
thirtieth (30th) day following the date when the Notice of Termination for Good
Reason is given (or as of an earlier date chosen by the Company), then for purposes of the
payments, benefits and other entitlements set forth herein, the termination of the Executive’s
employment pursuant thereto shall be deemed to occur during the Protection Period.

26

 

          16.21 “Incumbent Directors” shall have the meaning set forth in Section 1(i)(i).

          16.22 “Notice of Termination for Good Reason” shall have the meaning set forth in
Section 1(t).

          16.23 “Payment” means any payment, benefit or distribution (or combination thereof) by
the Company, any of its Affiliates or any trust established by the Company or its Affiliates, to or
for the benefit of the Executive, whether paid, payable, distributed, distributable or provided
pursuant to this Agreement or otherwise, including any payment, benefit or other right that
constitutes a “parachute payment” within the meaning of Section 280G of the Code.

          16.24 “Person” shall have the meaning set forth in Section 1(i)(i).

          16.25 “Protection Period” means the period commencing on the Change in Control Date
and ending on the second anniversary thereof.

          16.26 “Qualifying Termination” means any termination of the Executive’s employment
(i) by the Company, other than for Cause, death or Disability, that is effective (or with respect
to which the Executive is given written notice) during the Protection Period, (ii) by the Executive
for Good Reason during the Protection Period or (iii) by the Company that is effective prior to the
Change in Control Date, other than for Cause, death or Disability, at the request or direction of a
third party who took action that caused, or is involved in or a party to, a Change in Control.

          16.27 “Release” shall have the meaning set forth in Section 4(a)(vi).

          16.28 “Release Effective Date” shall have the meaning set forth in Section 4(a)(i).

          16.29 “Reorganization” shall have the meaning set forth in Section 1(i)(ii).

          16.30 “Safe Harbor Amount” shall have the meaning set forth in Section 5(a).

          16.31 “Specified Shareholder” shall mean any of (i) the Estate of John T. Walton and
its beneficiaries, (ii) JCL Holdings, LLC and its beneficiaries, (iii) Michael J. Ahearn and any of
his immediate family, (iv) any Person directly or indirectly controlled by any of the foregoing and
(v) any trust for the direct or indirect benefit of any of the foregoing.

          16.32 “Subsidiary” means any entity in which the Company, directly or indirectly,
possesses 50% or more of the total combined voting power of all classes of stock.

          16.33 “Successor” shall have the meaning set forth in Section 10(c).

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          16.34 “Termination Date” means the date on which the termination of the Executive’s
employment, in accordance with the terms of this Agreement, is effective, provided that in the
event of a Qualifying Termination described in clause (iii) of the definition thereof, the
Termination Date shall be deemed to be the Change in Control Date.

          16.35 “Underpayment” shall have the meaning set forth in Section 5(b).

          ARTICLE XVII. Effectiveness and Term. This Agreement shall become effective as of
the date hereof (the “Effective Date”) and shall remain in effect until the third
(3rd) anniversary of the Effective Date, except that, beginning on the second
anniversary of the Effective Date and on each anniversary thereafter, the term of this Agreement
shall be automatically extended for an additional one-year period, unless the Company or the
Executive provides the other party with sixty (60) days’ prior written notice before the applicable
anniversary that the term of this Agreement shall not be so extended. Notwithstanding the
foregoing, in the event of a Change in Control during the term of this Agreement (whether the
original term or the term as extended), this Agreement shall not thereafter terminate, and the term
hereof shall be extended, until the Company and its Subsidiaries have performed all their
obligations hereunder with no future performance being possible; provided, however,
that this Agreement shall only be effective with respect to the first Change in Control that occurs
during the term of this Agreement.

          ARTICLE XVIII. Impact of a Change in Control on Equity Compensation Awards.
Effective as of the Change in Control Date, notwithstanding any provision to the contrary, other
than any such provision that expressly provides that this Section 3 of this Agreement does not
apply (which provision shall be given full force and effect), in any of the Company’s equity-based,
equity-related or other long-term incentive compensation plans, practices, policies and programs
(including the Company’s 2003 Unit Option Plan and the Company’s 2006 Omnibus Incentive
Compensation Plan) or any award agreements thereunder, (a) all outstanding stock options, stock
appreciation rights and similar rights and awards then held by the Executive that are unexercisable
or otherwise unvested shall automatically become fully vested and immediately exercisable, as the
case may be, (b) all outstanding equity-based, equity-related and other long-term incentive awards
then held by the Executive that are subject to performance-based vesting criteria shall
automatically become fully vested and earned at a deemed performance level equal to the maximum
performance level with respect to such awards and (c) all other outstanding equity-based,
equity-related and long-term incentive awards, to the extent not covered by the foregoing clause
(a) or (b), then held by the Executive that are unvested or subject to restrictions or forfeiture
shall automatically become fully vested and all restrictions and forfeiture provisions related
thereto shall lapse.

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          ARTICLE XIX. Termination of Employment. 

          19.1 Qualifying Termination. In the event of a Qualifying Termination, the Executive
shall be entitled, subject to Section 4(a)(vi), to the following payments and benefits:

               (a) Severance Pay. The Company shall pay the Executive an amount equal to two (2)
times the sum of (A) the Executive’s Annual Base Salary (without regard to any reduction giving
rise to Good Reason) and (B) the Bonus Amount, in a lump-sum cash payment payable on the tenth
(10th) business day after the Release described in Section 4(a)(vi) becomes effective
and irrevocable (the “Release Effective Date”); provided, however, that
such amount shall be paid in lieu of, and the Executive hereby waives the right to receive, any
other cash severance payment the Executive is otherwise eligible to receive upon termination of
employment under any severance plan, practice, policy or program of the Company or any Subsidiary
or under any agreement between the Company and the Executive and, in the event of a Qualifying
Termination described in clause (iii) of the definition thereof, the severance payment payable
pursuant to this Section 4(a)(i) shall be reduced by the amount of any other such severance
payments previously paid to the Executive.

               (b) Prorated Annual Bonus. The Company shall pay the Executive an amount equal to the
product of (A) the Executive’s Annual Bonus and (B) a fraction, the numerator of which is the
number of days in the Company’s fiscal year in which the Termination Date occurs through the
Termination Date, and the denominator of which is three hundred sixty-five (365), in a lump-sum
payment payable on the tenth (10th) business day after the Release Effective Date.

               (c) Continued Welfare Benefits. The Company shall, at its option, either (A) continue
to provide medical, life insurance, accident insurance and disability benefits to the Executive and
the Executive’s spouse and dependents at least equal to the benefits provided by the Company and
its Subsidiaries generally to other active peer executives of the Company and its Subsidiaries or
(B) pay for the Executive’s continued group health plan coverage under the Consolidated Omnibus
Budget Reconciliation Act of 1985, as amended (“COBRA”), in the case of each of clauses (A)
and (B), for a period of time commencing on the Termination Date and ending on the date that is
eighteen (18) months after the Termination Date; provided, however, that if the
Executive becomes reemployed with another employer and is eligible to receive medical or other
welfare benefits under another employer-provided plan, the medical and other welfare benefits
described herein shall be secondary to those provided under such other plan during such applicable
period of eligibility. Any provision of benefits pursuant to this Section 4(a)(iii) in one (1) tax
year of the Executive (the “Executive Tax Year”) shall not affect the amount of such
benefits to be provided in any other Executive Tax Year. The right to such benefits shall not be
subject to liquidation or exchange for any other benefit.

               (d) Accrued Rights. The Executive shall be entitled to (A) payments of any unpaid
base salary, annual bonus or other amount earned or accrued

29

 

through the Termination Date and reimbursement of any unreimbursed business expenses incurred
through the Termination Date, (B) any payments explicitly set forth in any other benefit plans,
practices, policies and programs in which the Executive participates and (C) any payments the
Company is or becomes obligated to make pursuant to Sections 5, 7 and 12 (the rights to such
payments, the “Accrued Rights”). The Accrued Rights payable pursuant to Section
4(a)(iv)(A) and Section 4(a)(iv)(B) shall be payable on their respective otherwise scheduled
payment dates, provided that any amounts payable in respect of accrued but unused vacation
shall be paid in a lump sum within 15 days following the Termination Date. The Accrued Rights
payable pursuant to Section 4(a)(iv)(C) shall be payable at the times set forth in the applicable
Section hereof.

               (e) Outplacement. The Company shall reimburse the Executive for individual
outplacement services to be provided by a firm of the Executive’s choice or, at the Executive’s
election, provide the Executive with the use of office space, office supplies and secretarial
assistance satisfactory to the Executive. The aggregate expenditures of the Company pursuant to
this paragraph shall not exceed Twenty Thousand and 00/100 Dollars ($20,000). Notwithstanding
anything to the contrary in this Agreement, the outplacement benefits under this Section 4(a)(v)
shall be provided to the Executive for no longer than the one-year period following the Termination
Date, and the amount of any outplacement benefits or office space, office supplies and secretarial
assistance provided to the Executive in any Executive Tax Year shall not affect the amount of any
such outplacement benefits or office space, office supplies and secretarial assistance provided to
the Executive in any other Executive Tax Year.

               (f) Release of Claims. Notwithstanding any provision of this Agreement to the
contrary, unless on or prior to the tenth (10th) business day prior to March 15 of the
year following the year in which the Termination Date occurs, the Executive has executed and
delivered a Separation Agreement and Release (the “Release”) substantially in the form of
Exhibit A hereto and such Release has become effective and irrevocable in accordance with its
terms, (A) no payments shall be paid or made available to the Executive under Section 4(a)(i) or
4(a)(ii), (B) the Company shall be relieved of all obligations to provide or make available any
further benefits to the Executive pursuant to Section 4(a)(iii) and 4(a)(v) and (C) the Executive
shall be required to repay the Company, in cash, within five business days after written demand is
made therefor by the Company, an amount equal to the value of any benefits received by the
Executive pursuant to Section 4(a)(iii) and 4(a)(v) prior to such date.

          19.2 Termination on Account of Death or Disability; Non-Qualifying Termination. 

               (a) The Executive’s employment shall terminate automatically upon the Executive’s death or
Disability. In the event of any termination of Executive’s employment other than a Qualifying
Termination, the Executive shall not be entitled to any additional payments or benefits from the
Company under this Agreement, other than payments or benefits with respect to the Accrued Rights.

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               (b) For purposes of this Agreement, the Executive shall be deemed to have a
“Disability” in the event of the Executive’s absence for a period of 180 consecutive
business days as a result of incapacity due to a physical or mental condition, illness or injury
that is determined to be total and permanent by a physician mutually acceptable to the Company and
the Executive or the Executive’s legal representative (such acceptance not to be unreasonably
withheld) after such physician has completed an examination of the Executive. The Executive agrees
to make himself available for such examination upon the reasonable request of the Company, and the
Company shall be responsible for the cost of such examination.

          ARTICLE XX. Certain Additional Payments by the Company. 

          20.1 Notwithstanding anything in this Agreement to the contrary and except as set forth below,
in the event it shall be determined that any Payment that is paid or payable during the term of
this Agreement would be subject to the Excise Tax, the Executive shall be entitled to receive an
additional payment (a “280G Gross-Up Payment”) in an amount such that, after payment by the
Executive of all taxes (and any interest or penalties imposed with respect to such taxes),
including any income and employment taxes and Excise Taxes imposed upon the 280G Gross-Up Payment,
the Executive retains an amount of the 280G Gross-Up Payment equal to the Excise Tax imposed upon
such Payments. The Company’s obligation to make 280G Gross-Up Payments under this Section 5 shall
not be conditioned upon the Executive’s termination of employment and shall survive and apply after
the Executive’s termination of employment. Notwithstanding the foregoing provisions of this
Section 5(a), if it shall be determined that the Executive is entitled to a 280G Gross-Up Payment,
but that the Payments do not exceed one hundred ten percent (110%) of the greatest amount that
could be paid to the Executive without giving rise to any Excise Tax (the “Safe Harbor
Amount”), then no 280G Gross-Up Payment shall be made to the Executive and the amounts payable
under this Agreement shall be reduced so that the Payments, in the aggregate, are reduced to the
Safe Harbor Amount. If such a reduction is necessary, the Payments shall be reduced in the
following order: (i) the Payments payable under Section 4(a)(i), (ii) the Payments payable under
Section 4(a)(ii), (iii) any other cash Payments, (iv) the Payments payable under Section 4(a)(iii)
and (v) the accelerated vesting under Section 3.

          20.2 Subject to the provisions of Section 5(c), all determinations required to be made under
this Section 5, including whether and when a 280G Gross-Up Payment is required, the amount of such
280G Gross-Up Payment and the assumptions to be utilized in arriving at such determination, shall
be made in accordance with the terms of this Section 5 by a nationally recognized certified public
accounting firm that shall be designated by the Executive (the “Accounting Firm”). The
Accounting Film shall provide detailed supporting calculations both to the Company and the
Executive within fifteen (15) business days of the receipt of notice from the Executive that there
has been a Payment or such earlier time as is requested by the Company. For purposes of
determining the amount of any 280G Gross-Up Payment, the Executive shall be deemed to pay Federal
income tax at the highest marginal rate applicable to individuals in the calendar year in which any
such 280G Gross-Up Payment is to be made and deemed to

31

 

pay state and local income taxes at the highest marginal rates applicable to individuals in
the state or locality of the Executive’s residence or place of employment in the calendar year in
which any such 280G Gross-Up Payment is to be made, net of the maximum reduction in Federal income
taxes that can be obtained from deduction of state and local taxes, taking into account limitations
applicable to individuals subject to Federal income tax at the highest marginal rate. All fees and
expenses of the Accounting Firm shall be borne solely by the Company. Any 280G Gross-Up Payment,
as determined pursuant to this Section 5, shall be paid by the Company to the Executive within five
(5) business days of the receipt of the Accounting Firm’s determination. If the Accounting Firm
determines that no Excise Tax is payable by the Executive, it shall so indicate to the Executive in
writing. Any determination by the Accounting Firm shall be binding upon the Company and the
Executive. As a result of the uncertainty in the application of Section 4999 of the Code, at the
time of the initial determination by the Accounting Firm hereunder, it is possible that 280G
Gross-Up Payments that will not have been made by the Company should have been made (an
“Underpayment”), consistent with the calculations required to be made hereunder. In the
event the Company exhausts its remedies pursuant to Section 5(c) and the Executive thereafter is
required to make a payment of any Excise Tax, the Accounting Firm shall determine the amount of the
Underpayment that has occurred and any such Underpayment shall be paid by the Company to the
Executive within five (5) business days of the receipt of the Accounting Firm’s determination.

          20.3 The Executive shall notify the Company in writing of any written claim by the Internal
Revenue Service that, if successful, would require the payment by the Company of a 280G Gross-Up
Payment. Such notification shall be given as soon as practicable, but no later than ten (10)
business days after the Executive is informed in writing of such claim. Failure to give timely
notice shall not prejudice the Executive’s right to 280G Gross-Up Payments and rights of indemnity
under this Section 5. The Executive shall apprise the Company of the nature of such claim and the
date on which such claim is requested to be paid. The Executive shall not pay such claim prior to
the expiration of the thirty (30)-day period following the date on which the Executive gives such
notice to the Company (or such shorter period ending on the date that any payment of taxes with
respect to such claim is due). If the Company notifies the Executive in writing prior to the
expiration of such period that the Company desires to contest such claim, the Executive shall: (i)
give the Company any information reasonably requested by the Company relating to such claim, (ii)
take such action in connection with contesting such claim as the Company shall reasonably request
in writing from time to time, including accepting legal representation with respect to such claim
by an attorney reasonably selected by the Company, (iii) cooperate with the Company in good faith
in order effectively to contest such claim and (iv) permit the Company to participate in any
proceedings relating to such claim; provided, however, that the Company shall bear
and pay directly all costs and expenses (including additional income taxes, interest and penalties)
incurred in connection with such contest, and shall indemnify and hold the Executive harmless, on
an after-tax basis, for any Excise Tax or income tax (including interest or penalties) imposed as a
result of such representation and payment of costs and expenses. Without limitation on the
foregoing provisions of this Section 5(c), the Company shall control all proceedings taken in
connection with such contest, and, at its

32

 

sole discretion, may pursue or forgo any and all administrative appeals, proceedings, hearings
and conferences with the applicable taxing authority in respect of such claim and may, at its sole
discretion, either pay the tax claim on behalf of the Executive and direct the Executive to sue for
a refund or contest the claim in any permissible manner, and the Executive agrees to prosecute such
contest to a determination before any administrative tribunal, in a court of initial jurisdiction
and in one (1) or more appellate courts, as the Company shall determine; provided,
however, that (A) if the Company pays the tax claim on behalf of the Executive and directs
the Executive to sue for a refund, the Company shall indemnify and hold the Executive harmless, on
an after-tax basis, from any Excise Tax or income tax (including interest or penalties) imposed
with respect to such payment and (B) if such contest results in any extension of the statute of
limitations relating to payment of taxes for the taxable year of the Executive with respect to
which such contested amount is claimed to be due, such extension must be limited solely to such
contested amount. Furthermore, the Company’s control of the contest shall be limited to issues
with respect to which the 280G Gross-Up Payment would be payable hereunder, and the Executive shall
be entitled to settle or contest, as the case may be, any other issue raised by the Internal
Revenue Service or any other taxing authority.

          20.4 If, after the payment by the Company of any tax claim pursuant to Section 5(c), the
Executive becomes entitled to receive any refund with respect to such claim, the Executive shall
(subject to the Company’s complying with the requirements of Section 5(c)) promptly pay to the
Company the amount of such refund received (together with any interest paid or credited thereon
after taxes applicable thereto). If, after the payment by the Company of any tax claim pursuant to
Section 5(c), a determination is made that the Executive shall not be entitled to any refund with
respect to such claim and the Company does not notify the Executive in writing of its intent to
contest such denial of refund prior to the expiration of the thirty (30)-day period after such
determination, then the amount the Company paid in respect of such claim shall offset, to the
extent thereof, the amount of 280G Gross-Up Payment required to be paid.

          20.5 Notwithstanding anything to the contrary in this Agreement, (i) in no event shall any tax
gross-up payments be made by the Company to the Executive under this Section 5 after the end of the
Executive Tax Year following the Executive Tax Year in which the Executive remits the taxes for
which such tax gross-up payment is required to be made under this Section 5, and (ii) no other
payments will be made by the Company to the Executive under this Section 5 with respect to any
audit or litigation relating to any 280G Gross-Up Payment or Excise Tax or other taxes after the
Executive Tax Year following the Executive Tax Year in which the taxes that are the subject of the
audit or litigation referred to in this Section 5 are remitted to the taxing authority, or where,
as a result of such audit or litigation, no taxes are remitted, the end of the Executive Tax Year
following the Executive Tax Year in which the audit is completed or there is a final and
nonappealable settlement or other resolution of the litigation.

          ARTICLE XXI. Section 409A. 

          21.1 It is the intention of the Company and the Executive that the provisions of this
Agreement comply with Section 409A of the Code, and all provisions

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of this Agreement shall be construed and interpreted in a manner consistent with Section 409A
of the Code.

          21.2 Neither the Executive nor any creditor or beneficiary of the Executive shall have the
right to subject any deferred compensation (within the meaning of Section 409A of the Code) payable
under this Agreement or under any other plan, policy, arrangement or agreement of or with the
Company or any of its Affiliates (this Agreement and such other plans, policies, arrangements and
agreements, the “Company Plans”) to any anticipation, alienation, sale, transfer,
assignment, pledge, encumbrance, attachment or garnishment. Except as permitted under Section 409A
of the Code, any deferred compensation (within the meaning of Section 409A of the Code) payable to
or for the benefit of the Executive under any Company Plan may not be reduced by, or offset
against, any amount owing by the Executive to the Company or any of its Affiliates.

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

          ARTICLE XXII. No Mitigation or Offset; Enforcement of this Agreement. 

          22.1 The Company’s obligation to make the payments provided for in this Agreement and
otherwise to perform its obligations hereunder shall not be affected by any set-off, counterclaim,
recoupment, defense or other claim, right or action that the Company may have against the Executive
or others. In no event shall the Executive be obligated to seek other employment or take any other
action by way of mitigation of the amounts payable to the Executive under any of the provisions of
this Agreement and, except as otherwise expressly provided for in this Agreement, such amounts
shall not be reduced whether or not the Executive obtains other employment.

          22.2 The Company shall reimburse, upon the Executive’s demand, any and all reasonable legal
fees and expenses that the Executive may incur in good faith prior to the second anniversary of the
expiration of the term of this Agreement as a result of any contest, dispute or proceeding
(regardless of whether formal legal proceedings are ever commenced and regardless of the outcome
thereof and including all stages of any contest, dispute or proceeding) by the Company, the
Executive or any other Person with respect to the validity or enforceability of, or liability
under, any provision of this

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Agreement or any guarantee of performance thereof (including as a result of any contest by the
Executive regarding the amount of any payment owed pursuant to this Agreement), and shall indemnify
and hold the Executive harmless, on an after-tax basis, for any tax (including Excise Tax) imposed
on the Executive as a result of payment by the Company of such legal fees and expenses.
Notwithstanding anything to the contrary in this Agreement, any reimbursement for any fees and
expenses under this Section 7 shall be made promptly and no later than the end of the Executive Tax
Year following the Executive Tax Year in which the fees or expenses are incurred. The amount of
fees and expenses eligible for reimbursement under this Section 7 during any Executive Tax Year
shall not affect the fees and expenses eligible for reimbursement in another Executive Tax Year.
No right to reimbursement under this Section 7 shall be subject to liquidation or exchange for any
other payment or benefit. Notwithstanding anything to the contrary in this Agreement, no tax gross
up payments shall be made by the Company under this Section 7 after the end of the Executive Tax
Year following the Executive Tax Year in which the related taxes are remitted.

          ARTICLE XXIII. Non-Exclusivity of Rights. Except as specifically provided in Section
4(a)(i), nothing in this Agreement shall prevent or limit the Executive’s continuing or future
participation in any plan, practice, policy or program provided by the Company or a Subsidiary for
which the Executive may qualify, nor shall anything in this Agreement limit or otherwise affect any
rights the Executive may have under any contract or agreement with the Company or a Subsidiary.
Vested benefits and other amounts that the Executive is otherwise entitled to receive under any
incentive compensation (including any equity award agreement), deferred compensation, retirement,
pension or other plan, practice, policy or program of, or any contract or agreement with, the
Company or a Subsidiary shall be payable in accordance with the terms of each such plan, practice,
policy, program, contract or agreement, as the case may be, except as explicitly modified by this
Agreement.

          ARTICLE XXIV. Withholding. The Company may deduct and withhold from any amounts
payable under this Agreement such Federal, state, local, foreign or other taxes as are required to
be withheld pursuant to any applicable law or regulation.

          ARTICLE XXV. Assignment.

          25.1 This Agreement is personal to the Executive and, without the prior written consent of the
Company, shall not be assignable by the Executive otherwise than by will or the laws of descent and
distribution, and any assignment in violation of this Agreement shall be void.

          25.2 Notwithstanding the foregoing Section 10(a), this Agreement and all rights of the
Executive hereunder shall inure to the benefit of, and be enforceable by, the Executive’s personal
or legal representatives, executors, administrators, successors, heirs, distributees, devisees and
legatees. If the Executive should die while any amounts would still be payable to him hereunder if
he had continued to live, all such amounts, unless otherwise provided herein, shall be paid in
accordance with the terms of this

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Agreement to the Executive’s devisee, legatee or other designee or, should there be no such
designee, to the Executive’s estate.

          25.3 The Company shall require any successor (whether direct or indirect, by purchase, merger,
consolidation or otherwise) to all or substantially all of the business or assets of the Company (a
“Successor”) to assume and agree to perform this Agreement in the same manner and to the
same extent that the Company would have been required to perform it if no such succession had taken
place. As used in this Agreement, (i) the term “Company” shall mean the Company as hereinbefore
defined and any Successor and any permitted assignee to which this Agreement is assigned and (ii)
the term “Board” shall mean the Board as hereinbefore defined and the board of directors or
equivalent governing body of any Successor and any permitted assignee to which this Agreement is
assigned.

          ARTICLE XXVI. Dispute Resolution. 

          26.1 Except as otherwise specifically provided herein, the Executive and the Company each
hereby irrevocably submit to the exclusive jurisdiction of the United States District Court of
Delaware (or, if subject matter jurisdiction in that court is not available, in any state court
located within the city of Wilmington, Delaware) over any dispute arising out of or relating to
this Agreement. Except as otherwise specifically provided in this Agreement, the parties undertake
not to commence any suit, action or proceeding arising out of or relating to this Agreement in a
forum other than a forum described in this Section 11(a); provided, however, that
nothing herein shall preclude the Company or the Executive from bringing any suit, action or
proceeding in any other court for the purposes of enforcing the provisions of this Section 11 or
enforcing any judgment obtained by the Company or the Executive.

          26.2 The agreement of the parties to the forum described in Section 11(a) is independent of
the law that may be applied in any suit, action or proceeding and the parties agree to such forum
even if such forum may under applicable law choose to apply non-forum law. The parties hereby
waive, to the fullest extent permitted by applicable law, any objection that they now or hereafter
have to personal jurisdiction or to the laying of venue of any such suit, action or proceeding
brought in an applicable court described in Section 11(a), and the parties agree that they shall
not attempt to deny or defeat such personal jurisdiction by motion or other request for leave from
any such court. The parties agree that, to the fullest extent permitted by applicable law, a final
and non-appealable judgment in any suit, action or proceeding brought in any applicable court
described in Section 11(a) shall be conclusive and binding upon the parties and may be enforced in
any other jurisdiction.

          26.3 The parties hereto irrevocably consent to the service of any and all process in any suit,
action or proceeding arising out of or relating to this Agreement by the mailing of copies of such
process to such party at such party’s address specified in Section 18.

36

 

          26.4 Each party hereto hereby waives, to the fullest extent permitted by applicable law, any
right it may have to a trial by jury in respect of any suit, action or proceeding arising out of or
relating to this Agreement. Each party hereto (i) certifies that no representative, agent or
attorney of any other party has represented, expressly or otherwise, that such party would not, in
the event of any suit, action or proceeding, seek to enforce the foregoing waiver and (ii)
acknowledges that it and the other parties hereto have been induced to enter into this Agreement
by, among other things, the mutual waiver and certifications in this Section 11(d).

          ARTICLE XXVII. Default in Payment. Any payment not made within ten (10) business
days after it is due in accordance with this Agreement shall thereafter bear interest, compounded
annually, at the prime rate in effect from time to time at Citibank, N.A., or any successor
thereto. Such interest shall be payable at the same time as the corresponding payment is payable.

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

          ARTICLE XXIX. Amendment; No Waiver. No provision of this Agreement may be amended,
modified, waived or discharged except by a written document signed by the Executive and a duly
authorized officer of the Company. The failure of a party to insist upon strict adherence to any
term of this Agreement on any occasion shall not be considered a waiver of such party’s rights or
deprive such party of the right thereafter to insist upon strict adherence to that term or any
other term of this Agreement. Subject to Section 1(t), no failure or delay by either party in
exercising any right or power hereunder will operate as a waiver thereof, nor will any single or
partial exercise of any such right or power, or any abandonment of any steps to enforce such right
or power, preclude any other or further exercise thereof or the exercise of any other right or
power. No agreements or representations, oral or otherwise, express or implied, with respect to
the subject matter hereof have been made by either party that are not set forth expressly in this
Agreement.

          ARTICLE XXX. Severability. If any term or provision of this Agreement is invalid,
illegal or incapable of being enforced by any applicable law or public policy, all other conditions
and provisions of this Agreement shall nonetheless remain in full force and effect so long as the
economic and legal substance of the transactions contemplated by this Agreement is not affected in
any manner materially adverse to any party. Upon any such determination that any term or provision
is invalid, illegal or incapable of being enforced, the parties hereto shall negotiate in good
faith to modify this Agreement so as to effect the original intent of the parties as closely as
possible in a mutually acceptable manner in order that the transactions contemplated hereby be
consummated as originally contemplated to the fullest extent possible.

37

 

          ARTICLE XXXI. Entire Agreement. This Agreement sets forth the entire agreement of
the parties hereto in respect of the subject matter contained herein and supersedes all prior
agreements, promises, covenants, arrangements, communications, representations or warranties,
whether oral or written, by any officer, employee or representative of any party hereto, and any
prior agreement of the parties hereto in respect of the subject matter contained herein is hereby
terminated and canceled. None of the parties shall be liable or bound to any other party in any
manner by any representations and warranties or covenants relating to such subject matter except as
specifically set forth herein.

          ARTICLE XXXII. Survival. The rights and obligations of the parties under the
provisions of this Agreement, including Sections 5, 7, 11, 12 and 13, shall survive and remain
binding and enforceable, notwithstanding the expiration of the Protection Period or the term of
this Agreement, the termination of the Executive’s employment with the Company for any reason or
any settlement of the financial rights and obligations arising from the Executive’s employment, to
the extent necessary to preserve the intended benefits of such provisions.

          ARTICLE XXXIII. Notices. All notices or other communications required or permitted
by this Agreement will be made in writing and all such notices or communications will be deemed to
have been duly given when delivered or (unless otherwise specified) mailed by United States
certified or registered mail, return receipt requested, postage prepaid, addressed as follows:

	 	 	 
	If to the Company:
	 	First Solar, Inc.
	 
	 	4050 East Cotton Center Boulevard
	 
	 	Building 6, Suite 68
	 
	 	Phoenix, Arizona 85040
	 
	 	Attention:  Chief Executive Officer
	 
	 	Fax:  602-414-9400
	 
	 	 
	If to the Executive:
	 	To the Executive's then current address on file with
	 
	 	the Company

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

          ARTICLE XXXIV. Headings and References. The headings of this Agreement are inserted
for convenience only and neither constitute a part of this Agreement nor affect in any way the
meaning or interpretation of this Agreement. When a reference in this Agreement is made to a
Section, such reference shall be to a Section of this Agreement unless otherwise indicated.

          ARTICLE XXXV. Counterparts. This Agreement may be executed in one or more
counterparts (including via facsimile), each of which shall be deemed to be an original, but all of
which together shall constitute one and the same instrument.

38

 

          ARTICLE XXXVI. Interpretation. For purposes of this Agreement, the words “include”
and “including”, and variations thereof, shall not be deemed to be terms of limitation but rather
shall be deemed to be followed by the words “without limitation”. The term “or” is not exclusive.
The word “extent” in the phrase “to the extent” shall mean the degree to which a subject or other
thing extends, and such phrase shall not mean simply “if’.

          ARTICLE XXXVII. Time of the Essence. The parties hereto acknowledge and agree that
time is of the essence in the performance of the obligations of this Agreement and that the parties
shall strictly adhere to any timelines herein.

          IN WITNESS WHEREOF, this Agreement has been executed by the parties as of the date first
written above.

	 	 	 	 	 
	 

	 	FIRST SOLAR, INC.,	 	 
	 
	 	 	 	 
	 

	 	By          /s/ Michael J. Ahearn
 

          Name: Michael J. Ahearn
	 	 
	 

	 	          Title: Chief Executive	 	 
	 

	 	               Officer and Chairman	 	 
	 
	 	 	 	 
	 

	 	EXECUTIVE:	 	 
	 
	 	 	 	 
	 

	 	          /s/ John Carrington
 

          John Carrington
	 	 

39

 

Separation Agreement and Release

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

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

 

 

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

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

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

IV. Return of Property. The undersigned shall return to the Company on or before [10 DAYS
AFTER TERMINATION DATE], all property of the Company in the undersigned’s possession or subject to
the undersigned’s control, including without limitation any laptop computers, keys, credit cards,
cellular telephones and files. The undersigned shall not alter any of the Company’s records or
computer files in any way after [TERMINATION DATE].

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

VI. GOVERNING LAW. THIS SEPARATION AGREEMENT AND RELEASE SHALL BE DEEMED TO BE MADE IN
THE STATE OF DELAWARE, AND THE VALIDITY, INTERPRETATION, CONSTRUCTION AND PERFORM-ANCE OF THIS

2

 

AGREEMENT IN ALL RESPECTS SHALL BE GOVERNED BY THE LAWS OF THE STATE OF DELAWARE WITHOUT REGARD TO
ITS PRINCIPLES OF CONFLICTS OF LAW.

Effective on the eighth calendar day following the date set forth below.

	 	 	 	 	 
	 

	 	FIRST SOLAR, INC.,	 	 
	 
	 	 	 	 
	 

	 	By      SAMPLE
 

           Name:
	 	 
	 

	 	          Title:	 	 
	 
	 	 	 	 
	 

	 	EMPLOYEE,	 	 
	 
	 	 	 	 
	 

	 	           SAMPLE
 

           [NAME]
	 	 
	 

	 	           Date	 	 
	 

	 	           Signed:	 	 

3

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