On December 31, 2012, Intermolecular, Inc. entered into a collaborative development program agreement with First Solar, Inc. to improve the efficiency of First Solar's CdTe photo-voltaic cell based solar panels. This CDP is an expansion of an earlier collaboration between First Solar and the company as reflected in an agreement dated June 1, 2012. Under this CDP agreement, the company will provide development services to First Solar using proprietary HPC platform for the purpose of improving the efficiency of First Solar's CdTe photo-voltaic cell based solar panels.

First Solar has agreed to pay fees for providing the development services to First Solar and certain pre-approved expenses and material costs. The company have agreed to grant First Solar a royalty bearing license to use the CDP intellectual property necessary to manufacture and sell any improved solar panels to the extent that the company is successful in improving the efficiency of First Solar's CdTe solar panels. The company have agreed to grant First Solar a royalty bearing license to use the CDP intellectual property necessary to manufacture and sell any improved solar panels to the extent that the company is successful in improving the efficiency of First Solar's CdTe solar panels.

For certain other incremental technology developed by the company under this CDP, First Solar shall have a right for a fixed period of time to purchase the technology for a fixed amount. The period of development activities and use of the HPC platform is at least through February 28, 2014.