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Document Preview Conversion, Consent, Voting and Lock-Up Agreement |
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Title: |
Conversion, Consent, Voting and Lock-Up Agreement |
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Entities: |
Evergreen Solar, Inc.; Paul, Weiss, Rifkind, Wharton & Garrison; Testa, Hurwitz & Thibeault |
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Date: |
2004 |
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Size: |
Preview shows 6KB of 45KB total |
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Price: |
$49 |
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ID: |
#1221927 |
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CONVERSION, CONSENT, VOTING AND LOCK-UP AGREEMENT
This CONVERSION, CONSENT, VOTING AND LOCK-UP AGREEMENT, dated June
21, 2004 (this "Agreement"), by and among Evergreen Solar, Inc., a Delaware
corporation (the "Company"), Richard M. Feldt ("Feldt"), Philip J. Deutch
("Deutch"), Tim Woodward ("Woodward"), Charles J. McDermott ("McDermott"), Luc
Charron ("Charron"), Dr. Robert W. Shaw, Jr. ("Shaw"), Dr. Brown Williams
("Williams"), Dr. William P. Sommers ("Sommers"), Richard G. Chleboski
("Chleboski"), Mark A. Farber ("Farber"), Dr. Jack Hanoka ("Hanoka"), Hanoka
Evergreen Limited Partnership ("Hanoka LP" and together with Feldt, Deutch,
Woodward, McDermott, Charron, Shaw, Williams, Sommers, Chleboski, Farber, Shaw
and Hanoka, the "Common Stockholders") and each of holders of shares of Series A
Convertible Preferred Stock, $0.01 par value per share of the Company electing
to return a signature page hereto to the Company prior to 8:00 a.m. eastern
standard time on Friday, June 18, 2004 (each a "Series A Stockholder" and
collectively, the "Series A Stockholders" and collectively with the Common
Stockholders, the "Stockholders"). Unless otherwise provided in this Agreement,
capitalized terms used herein have the respective meanings given to them in that
certain Stock and Warrant Purchase Agreement, dated as of even date herewith
(the "Purchase Agreement"), among the Company and Loeb Partners Corp., LB I
Group Inc., Alexandra Global Master Fund Ltd., Omicron Master Trust, SF Capital
Partners, Grace Brothers LTD, CRT Capital Group LLC, Truk Opportunity Fund LLC,
Truk International Fund LP, Portside Opportunity and Growth Fund, Morgan Stanley
& Co. International Limited, Double Black Diamond Offshore LDC, Blackmore
Partners LP, Blackmore Wallace Partners and Blackmore Offshore Fund, Ltd.
(collectively, the "Purchasers").
WHEREAS, the Company has agreed with the Purchasers to enter into
the Purchase Agreement providing for the issuance and sale by the Company to the
Purchasers of (i) an aggregate of 7,662,835 shares of Common Stock
(collectively, the "Common Shares") and (ii) warrants to purchase an aggregate
of 2,298,851 shares of Common Stock at an exercise price per share equal to
$3.335 (collectively, the "Warrants");
WHEREAS, in order to induce the Purchasers to enter into the
Purchase Agreement, (i) the Purchasers and CRT Capital Group, LLC (the
"Placement Agent") on behalf of the Purchasers have requested that the
Stockholders, and certain Stockholders have agreed to, enter into this Agreement
with respect to all of the Shares (as such term is defined below) that such
Stockholders beneficially own and (ii) the Stockholders and the Company
acknowledge that each of the Purchasers is a third party beneficiary of this
Agreement;
<PAGE>
WHEREAS, in consideration of the agreement of the Company and the
Purchasers to enter into the Purchase Agreement, the Stockholders have agreed to
enter into this Agreement;
WHEREAS, the Series A Stockholders have agreed to (i) convert all of
the outstanding shares of Series A Convertible Preferred Stock, par value $0.01
per share (the "Series A Preferred Shares") held by them effective immediately
prior to the consummation of the transactions contemplated by the Purchase
Agreement and (ii) to consent to the amendment and restatement of that certain
Registration Rights Agreement dated as of May 15, 2003 by and among the Company
and the Series A Purchasers (such Registration Rights Agreement as amended and
restated, the "Amended and Restated Registration Rights Agreement");
WHEREAS, the Purchasers desire to cause the Company to amend its
Third Amended and Restated Certificate of Incorporation, as amended to date, in
order to increase the amount of the Company's authorized Common Stock, so that a
sufficient number of shares of Common Stock will be available for issuance in
connection with the consummation of the transactions contemplated by the
Purchase Agreement and for general corporate purposes (the "Charter Amendment");
WHEREAS, the rules and regulations of the Nasdaq National Market
("NASDAQ") may limit or prohibit the issuance of the entire amount of the Common
Shares, the Warrants and the Common Shares issuable upon exercise of the
Warrants as contemplated by the Purchase Agreement (the "Securities Issuance")
unless and until the stockholders of the Company have voted to approve the
Securities Issuance;
WHEREAS, the Stockholders have agreed to vote in favor of the
Securities Issuance if the rules and regulations of NASDAQ require the
stockholders of the Company to vote to approve all or a portion of the
Securities Issuance (the "Stockholder Vote");
WHEREAS, it is a condition to the Purchasers' obligations under the
Purchase Agreement that the Company and the Stockholders enter into this
Agreement for the purpose of setting forth the terms and conditions pursuant to
which such Stockholders will agree to convert all of the Series A Preferred
Shares held by them and to vote all their shares of voting capital stock of the
Company now owned or that may hereafter be acquired (whether upon the exercise
of warrants or options or otherwise) by such Stockholder (the "Shares");
WHEREAS, in order to induce each of the Series A Stockholders to
execute this Agreement and to convert all of the Series A Shares held by each
such Series A Stockholder into shares of Common Stock effective immediately
prior to the consummation of the transactions contemplated by the Purchase
Agreement, the Company has agreed that each Series A Stockholder executing this
Agreement and converting all of the Series A Shares held by such Series A
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