EMPLOYMENT AGREEMENT

(f)             “ Date of Termination ” shall mean (i) if the Executive’s employment is terminated by his death, the date of his death; (ii) if the Executive’s employment is terminated due to his Disability, the date determined pursuant to Section 4(a)(ii); (iii) if the Executive’s employment is terminated pursuant to Section 4(a)(iii)-(vi) either the date indicated in the Notice of Termination or the date specified by the Company pursuant to Section 4(b), whichever is earlier; or (iv) if the Executive’s employment is terminated pursuant to Section 4(a)(vii) the date on which the Term expires.

(g)            “ Disability ” shall mean any physical or mental illness, injury or infirmity which prevents the Executive from performing the Executive’s job functions for a period of (i) one hundred twenty consecutive calendar days or (ii) an aggregate of one hundred eighty calendar days out of any consecutive twelve month period.  Any determination of disability shall be made by the Board in consultation with a qualified physician or physicians selected by the Board and reasonably acceptable to the Executive.  The failure of the Executive to submit to a reasonable examination by such physician or physicians shall act as an estoppel to any objection by the Executive to the determination of disability by the Board.

(h)            “ Effective Date ” shall have the meaning set forth in Section 2(b).

(i)             “ Executive ” shall have the meaning set forth in the preamble hereto.

(j)             The Executive shall have “ Good Reason ” to resign his employment upon the occurrence (without the Executive’s prior written consent) of any of the following:  (A) a material diminution in the nature or scope of the Executive’s responsibilities, duties or authority in his capacity as President of STR Quality Assurance, without regard to any other responsibilities, duties or authority the Executive may have had or performed for the Company at any time; (B) the Company’s material breach of this Agreement; (C) any change in the Executive’s reporting relationship so that he no longer reports to the Chief Executive Officer; (D) a relocation of the Executive’s place of employment to a location more than thirty miles by road from Enfield, Connecticut; or (E) any decrease in the Executive’s Annual Base Salary, target bonus percentage as set forth in Section 3(a), or benefit plans, programs and arrangements as in effect from time to time (other than a general reduction in base salary, target bonus percentages or benefit plans, programs and arrangements that affects all members of senior management equally); provided, however , that the Executive may not resign his employment for Good Reason unless:  (x) the Executive provided the Company with at least 30 days prior written notice of his intent to resign for Good Reason (which notice must be provided within 45 days following (i) the occurrence of the event(s) purported to constitute Good Reason, or (ii) if the Executive could not reasonably have known of the occurrence of any of such events, the date on which the Executive had actual knowledge of the occurrence of any of such events); and (y) the Company has not remedied the alleged occurrence(s) within the 30-day period following its receipt of such notice from the Executive.

(k)            “ Notice of Termination ” shall have the meaning set forth in Section 4(b).

(l)             “ Parent ” means STR Holdings LLC, a Delaware limited liability company.

(m)           “ Term ” shall have the meaning set forth in Section 2(b).

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2.              Employment

(a)            In General .  The Company shall employ the Executive and the Executive shall enter the employ of the Company, for the period set forth in Section 2(b), in the position set forth in Section 2(c), and upon the other terms and conditions herein provided.

(b)            Term of Employment .  The initial term of employment under this Agreement (the “ Initial Term ”) shall be for the period beginning on August 24, 2009 (the “ Effective Date ”) and ending on the third anniversary thereof, unless earlier terminated as provided in Section 4.  The employment term hereunder shall automatically be extended for successive one-year periods (“ Extension Terms ” and, collectively with the Initial Term, the “ Term ”) unless either party gives written notice of non-extension to the other no later than 60 days prior to the expiration of the then applicable Term.

(c)            Position and Duties .  The Executive shall serve as President of STR Quality Assurance, with responsibilities, duties and authority customary for such position, subject to direction by the Chief Executive Officer.  The Executive shall report to the Chief Executive Officer.  The Executive shall devote substantially all his working time and efforts to the business and affairs of the Company and its subsidiaries.  The Executive agrees to observe and comply with the Company’s rules and policies as adopted by the Company from time to time.  During the Term, it shall not be a violation of this Agreement for the Executive to (i) serve on industry trade, civic or charitable boards or committees; (ii) deliver lectures or fulfill speaking engagements; or (iii) manage personal investments (which shall include (x) investments by the Executive of his personal assets in any business which does not compete directly or indirectly with the Company, in such form or manner as will not require any services on the part of the Executive in the operation of such business and (y) the purchase by the Executive of a total of up to 1% of the regularly traded securities of any entity, whether or not it competes with the Company), as long as, in the reasonable judgment of the Chief Executive Officer of the Company, such activities do not and will not interfere with the performance of the Executive’s duties and responsibilities as an employee of the Company.  The Executive shall perform his duties hereunder at the Company’s corporate headquarters in Enfield, Connecticut and shall travel as necessary or as reasonably requested by the Chief Executive Officer of the Company.

3.              Compensation and Related Matters

(a)            Annual Base Salary .  During the Term, the Executive shall receive a base salary at a rate of $250,000.00 per annum, which shall be paid in accordance with the customary payroll practices of the Company, subject to increase as determined by the Board in its sole discretion (the “ Annual Base Salary ”).  The Executive’s Annual Base Salary will be reviewed annually by the Board and the Board may, in its sole discretion, increase the Annual Base Salary considering the Executive’s performance and that of the Company.

(b)            Bonus Compensation .

(i)             In addition to the Annual Base Salary, for each fiscal year, or portion thereof, during the Term, the Executive shall be eligible to participate in the Company’s management incentive plan (or any successor incentive plan adopted by the Board) pursuant to which Executive may be paid a target amount of 40% of his Annual Base Salary except as the parties may have agreed otherwise in writing (the “ Annual Bonus ”).  The Annual Bonus will be based upon performance measured against goals

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established by the Chief Executive Officer and the Board.  For purposes of the 2009 fiscal year, the Executive shall be entitled to not less than a pro-rata share of his Annual Bonus for the portion of the 2009 fiscal year in which the Executive is employed following the Effective Date.  In the discretion of management, Executive shall be eligible to receive incentive units pursuant to the terms of the Third Amended and Restated Limited Liability Company Agreement of STR Holdings LLC (the “ LLC Agreement ”).

(ii)            On the Effective Date, Executive shall receive a signing bonus in an amount equal to $125,000 (the “ Signing Bonus ”); provided , however , should Executive terminate within one year after the Effective Date either for Cause or without Good Reason, Executive shall reimburse the Company in an amount equal to the Signing Bonus.

(c)            Benefits .  The Executive shall be entitled to participate in employee benefit plans, programs and arrangements of the Company now (or, to the extent determined by the Board, hereafter) in effect which are applicable to the senior management of the Company.

(d)            Vacation .  During the Term, the Executive shall be entitled to four weeks paid vacation each calendar year.  Any vacation shall be taken at the reasonable and mutual convenience of the Company and the Executive.

(e)            Expenses .  The Company shall promptly reimburse the Executive for all reasonable travel and other business expenses incurred by him in the performance of his duties to the Company in accordance with the Company’s applicable expense reimbursement policies and procedures (including, without limitation, (i) transitional living expenses for the one-year period following the Effective Date in an amount not to exceed $25,000 and (ii) relocation expenses paid by Executive within eighteen months from the Effective Date, which shall include reasonable realtor and household moving fees, in an amount not to exceed $175,000).  Commuting expenses during the transition period will also be covered by the Company.

(f)             Equity Grant .          On the Effective Date, and pursuant to the terms and subject to the conditions set forth in the Incentive Unit Grant Agreement between Parent and the Executive and the LLC Agreement, Executive shall be granted 145,834 Class C Units, 52,083 Class D Units and 52,083 Class E Units.

4.              Termination .  The Executive’s employment hereunder may be terminated by the Company or the Executive, as applicable, without any breach of this Agreement only under the following circumstances:

(a)            Circumstances

(i)             Death .  The Executive’s employment hereunder shall terminate upon his death.

(ii)            Disability .  If the Executive incurs a Disability, the Company may give the Executive written notice of its intention to terminate the Executive’s employment.  In that event, the Executive’s employment with the Company shall terminate effective on the later of the 30th day after receipt of such notice by the

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Executive or the date specified in such notice, provided that within the 30 days after such receipt, the Executive shall not have returned to full-time performance of his duties.

(iii)           Termination for Cause .  The Company may terminate the Executive’s employment for Cause.

(iv)           Termination without Cause .  The Company may terminate the Executive’s employment without Cause.

(v)            Resignation for Good Reason .  The Executive may resign his employment for Good Reason.

(vi)           Resignation without Good Reason .  The Executive may resign his employment without Good Reason.

(vii)          Non-renewal .  Either party may notify the other of his or its intent not to renew this Agreement at least 60 days prior to the expiration of the Term, which shall be treated as a termination without Cause if such notice is given by the Company and the Company does not concurrently waive the Executive’s obligations under Section 2 of the Agreement Not to Compete, or a resignation without Good Reason if such notice is given by the Executive.

(b)            Notice of Termination .  Any termination of the Executive’s employment by the Company or by the Executive under this Section 4 (other than termination pursuant to paragraph (a)(i)) shall be communicated by a written notice to the other party hereto indicating (i) the specific termination provision in this Agreement relied upon, (ii) except with respect to a termination pursuant to Section 4(a)(iv) or 4(a)(vi), setting forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of the Executive’s employment under the provision so indicated, and (iii) specifying a Date of Termination which, if submitted by the Executive (or, in the case of a termination described in Section 4(a)(ii), by the Company), shall be at least 30 days following the receipt of such notice (a “ Notice of Termination ”); provided, however , that a Notice of Termination delivered by the Company pursuant to Section 4(a)(ii) shall not be required to specify a Date of Termination, in which case the Date of Termination shall be determined pursuant to Section 4(a)(ii); and provided, further , that in the event that the Executive delivers a Notice of Termination to the Company, the Company may, in its sole discretion, change the Date of Termination to any date that occurs following the date of Company’s receipt of such Notice of Termination (even if such date is prior to the date specified in such Notice of Termination).  A Notice of Termination submitted by the Company may provide for a Date of Termination on the date the Executive receives the Notice of Termination, or any date thereafter elected by the Company in its sole discretion.  The failure by the Executive or the Company to set forth in the Notice of Termination any fact or circumstance which contributes to a showing of Cause or Good Reason shall not waive any right of the Executive or the Company hereunder or preclude the Executive or the Company from asserting such fact or circumstance in enforcing the Executive’s or the Company’s rights hereunder.

5.              Company Obligations Upon Termination of Employment

(a)            In General .  Upon a termination of the Executive’s employment for any reason, the Executive (or the Executive’s estate) shall be entitled to receive in a lump sum within 20 business days following the Executive’s termination: the sum of the Executive’s Annual

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Base Salary through the Date of Termination and any expenses owed to the Executive under Section 3(e).  The Executive shall also be entitled to receive in a lump sum any awarded but unpaid Annual Bonus for the fiscal year of the Company prior to the fiscal year during which the Date of Termination occurs (except in the event of a termination by the Company for Cause) within 20 business days following the Company’s receipt of audited financial statements for such prior fiscal year.  The Executive shall also be entitled to any accrued vacation pay owed to the Executive pursuant to Section 3(d); any amount arising from the Executive’s participation in, or benefits under, any employee benefit plans, programs or arrangements under Section 3(c) (including without limitation, any disability or life insurance benefit plans, programs or arrangements), which amounts shall be payable in accordance with the terms and conditions of such employee benefit plans, programs or arrangements; and any benefits that may be due the Executive under the LLC Agreement or incentive unit agreements between the Executive and the Company.

(b)            Termination without Cause or Resignation for Good Reason .  If the Executive’s employment shall be terminated by the Company without Cause or by the Executive for Good Reason (but not by reason of the Executive’s death, Disability, termination by the Company for Cause or termination by the Executive without Good Reason), then, in addition to the payments and benefits described in Section 5(a) (including benefits under stock option agreements), the Company shall:

(i)             Continue to pay to the Executive, in accordance with the Company’s regular payroll practice following the Date of Termination, the Executive’s Annual Base Salary, and continue the Executive’s participation at active employee contribution rates in the Company’s health, life insurance and retirement plans through twelve months from the Date of Termination; provided that each payment is intended to constitute a separate payment within the meaning of Code Section 409A and the regulations thereunder; provided , further that in the event that Executive is determined by the Company to be a “specified employee” (as defined in Code Section 409A(2)(B) and determined in accordance with Code 416(i) (without regard to paragraph (5) thereof)) of the Company at a time when its stock is deemed to be publicly traded on an established securities market, any payments determined to be “nonqualified deferred compensation” payable following termination of employment shall be made no earlier than the earlier of (i) the last day of the sixth (6th) complete calendar month following such termination of employment, or (ii) Executive’s death, consistent with the provisions of Code Section 409A.  Any payment delayed by reason of the prior sentence shall be paid out in a single lump sum at the end of such required delay period in order to catch up to the original payment schedule;

(ii)            If the Executive otherwise would have been entitled to receive a payment pursuant to the Company’s bonus plan had he been employed on the last day of the Company’s fiscal year, then pay to the Executive on April 30 of the year following the year in which the Executive’s termination occurs, (and in the event that the Company has not received its audited financial statements for the prior year by April 30 of such year, such bonus shall be paid as soon as practicable thereafter, consistent with the provisions of Code Section 409A, but in no event later than the last day of such following year), the amount of such payment, multiplied by a fraction the numerator of which is the number of days during such fiscal year that the Executive was employed and the denominator of which is 365; and

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