Document:

Unassociated Document

     

    
      	  

              
                CONFIDENTIAL
      TREATMENT REQUESTED

                --

                CONFIDENTIAL
      PORTIONS OF THIS DOCUMENT HAVE BEEN REDACTED AND HAVE BEEN SEPARATELY
      FILED WITH THE SECURITIES AND EXCHANGE
  COMMISSION

              

            

    

     

    WAIVER
AGREEMENT

    

    

    THIS WAIVER AGREEMENT (this
"Agreement") is entered into as of January 18, 2008, by and between SUNPOWER
CORPORATION, a Delaware corporation ("Borrower"), and WELLS FARGO BANK, NATIONAL
ASSOCIATION ("Bank").

    

    RECITALS

    

    WHEREAS, Borrower is currently indebted
to Bank pursuant to the terms and conditions of that certain Credit Agreement
between Borrower and Bank dated as of July 13, 2007, as amended from time to
time ("Credit Agreement").

    

    NOW, THEREFORE, for valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto agree as follows:

    

    
      	
              1.  

            	
              So
      long as Borrower deposits funds in a deposit account maintained by Borrow
      with Bank (account number *** – the “Cash Collateral Account”) on or
      before

            

    

    January
18, 2008, in an amount no less than the amount of all outstanding indebtedness
of Borrower to Bank in connection with the Line of Credit and the Letter of
Credit Line under the Credit Agreement, including the aggregate amount available
to be drawn under Subfeature Letters of Credit and Letters of Credit (with all
such indebtedness, whether contingent or liquidated, referred to as the “Secured
Obligations”), Bank hereby waives, effective as of the occurrence of each such
event, Borrower’s failure to comply with the following covenants set forth in
the Credit Agreement:

    

    
      	
              (a)  

            	
              Section
      4.3(d).  Borrower’s failure to deliver in a timely manner
      a certificate of the chief executive officer or chief financial officer of
      Borrower that financial statement, delivered under Section 4.3 of the
      Credit Agreement were accurate and that there existed no Event of Default
      nor any condition, act or event which with the giving of notice or the
      passage of time or both would constitute an Event of Default, and with
      supporting calculations showing compliance with financial
      covenants;

            

    

    

    
      	
              (b)  

            	
              Section
      5.4.  Borrower’s and Third Party Obligors’ guaranteeing
      or becoming liable in any way as surety, endorser, accommodation endorser
      or otherwise for, or pledging or hypothecating any assets of Borrower or
      such Third Party Obligor as security for, any liabilities or obligations
      of Borrower’s Subsidiaries, with the principal amount of such
      Subsidiaries’ obligations subject hereto exceeding an aggregate of Fifty
      Million Dollars ($50,000,000.00) outstanding at any time;
    and

            

    

    

    
      	
              (c)  

            	
              Section
      5.5.  Borrower’s entering into an Option Agreement, dated
      as of January 10, 2008, with NorSun AS pursuant to which Borrower could
      acquire a partial ownership interest in a joint venture company to be
      established by NorSun AS and its joint venture partners pursuant to the
      Joint Venture Agreement, of the same date, by and among such
      parties.

            

    

    

    
      	
              (d)  

            	
              With
      respect to Section 5.4 of the Credit Agreement, Bank acknowledges that
      Borrower and Third Party Obligors may continue to enter into guaranties in
      excess of the aggregate amount permitted thereunder and Bank agrees to
      waive

            

    

    compliance
with Section 5.4 on an ongoing basis with respect to such guaranties so long as
(i) no other Event of Default occurs, and (ii) Borrower continues to maintain
funds in the Cash Collateral Account in the amounts required under Section 2
hereof.

    

    
      	
              2.  

            	
              The
      waiver granted by Bank under Section 1(b) above (a) is limited to the
      specific items described above as the same existed as of the date hereof,
      and (b) shall continue in full force and effect only so long as (i)
      Borrower deposits and maintains funds in the Cash Collateral Account
      (which Borrower hereby agrees to do) in an amount no less than the amount
      of Secured Obligations, or (ii) until such time as such waiver is
      superseded by the parties’ agreement to amend the Credit Agreement to
      address the question of corporate guaranties, whichever occurs
      first.  Borrower hereby agrees that, effective as of and after
      the date hereof, the Cash Collateral Account shall secure not only the
      Letter of Credit Line (and all Letters of Credit issued thereunder), but
      also the Line of Credit (and all advances made and Subfeature Letters of
      Credit issued thereunder).  Section 1.5 of the Credit Agreement
      (“Collateral”) and the Security Agreement (Deposit Account) executed in
      connection therewith are hereby deemed amended accordingly.  In
      the event that Bank determines that due to currency fluctuations the
      amount on deposit in the Cash Collateral Account falls below 100% of the
      amount of the Secured Obligations, Borrower shall, within 5 days after
      Bank’s written demand therefor, deposit funds into the Cash Collateral
      Account in the amount of such
shortfall.

            

    

    

    
      	
              3.  

            	
              Except
      as specifically provided herein, all terms and conditions of the Credit
      Agreement remain in full force and effect, without waiver or
      modification.  All terms defined in the Credit Agreement shall
      have the same meaning when used in this
  Agreement.

            

    

    

    
      	
              4.  

            	
              Borrower
      hereby remakes all representations and warranties contained in the Credit
      Agreement and reaffirms all covenants set forth therein, except as Bank
      expressly waives compliance in this Agreement.  Borrower further
      certifies that as of the date of this Agreement, there exists no Event of
      Default as defined in the Credit Agreement, nor any condition, act or
      event which with the giving of notice or the passage of time or both would
      constitute any such Event of Default, except as such circumstances as to
      which Bank expressly waives compliance in this
  Agreement.

            

    

    
       

      ***
CONFIDENTIAL MATERIAL REDACTED AND SEPARATELY FILED WITH THE SECURITIES AND
EXCHANGE COMMISSION.

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

    IN WITNESS WHEREOF, the parties hereto
have caused this Agreement to be executed as of the day and year first written
above.

    

                      
WELLS FARGO BANK,

    SUNPOWER
CORPORATION                                                                             NATIONAL
ASSOCIATION

    

    By: /s/ EMMANUEL T.
HERNANDEZ                                                               By:
/s/ MATTHEW A.
SERVATIUS

           Emmanuel
T.
Hernandez                                                                                 Matthew
A. Servatius

           Chief
Financial
Officer                                                                                   
Vice President

    

     

     

    
      2Unassociated Document

     

    
      	  

              
                CONFIDENTIAL
      TREATMENT REQUESTED

                --

                CONFIDENTIAL
      PORTIONS OF THIS DOCUMENT HAVE BEEN REDACTED AND HAVE BEEN SEPARATELY
      FILED WITH THE SECURITIES AND EXCHANGE
  COMMISSION

              

            

    

     

    In
Madrid, on January 31, 2008

    

    APPEARING
PARTIES

    

    
      	
              (1)  

            	
              SUNPOWER ENERGY SYSTEMS SPAIN,
      S.L. (the“Contractor”), with
      corporate domicile in Madrid, Paseo de la Castellana
  86.

            

    

    

    
      	
              (2)  

            	
              SOLARGEN PROYECTOS E
      INSTALACIONES, S.L. (the “Owner”), with corporate
      domicile in C/ Núñez de Balboa, 120, 7o, 28006, Madrid y CIF número
      B-84299767.

            

    

    

    The
entities above mentioned shall be jointly referred as the “Parties”.

    

    RECITALS

    

    
      	
              I.  

            	
              Whereas
      on December 28, 2007 the Owner and the Contrator entered into a turnkey
      agreement (the “Construction Contract”)
      for the construction of a solar park in Las Casas de Don Pedro (Badajoz),
      formed by seventy (70) Solar Facilities having between 115 and 122 kWp of
      peak power and 100 kWe at the inverter. The solar park is divided in two
      (2) phases, the first phase (the “Fisrt Phase”) to be
      developed in Site 1 and the second one (the “Second Phase”) to be
      developed in Site 2.

            

    

    

    
      	
              II.  

            	
              Whereas
      Clause 3 of the Construction Contract sets forth, amongst others, the
      following Conditions Precedent for the beginning of works of each
      Phase:

            

    

    

    
      	
              (i)  

            	
              a
      letter signed by the agent of the Financial Institutions has been
      delivered to the Contractor confirming the availability of the financing
      related to the relevant Phase

            

    

    

    
      	
              (ii)  

            	
              a
      copy of all the licences and authorisations specified in Clause 3(1)(ii)
      of the Construction Contract necessary for the commencement of the
      construction of the relevant Phase has been delivered to the
      Contractor

            

    

    

    
      	
              (iii)  

            	
              the
      Contractor and the Owner agree: (a) the dimension of
      each of the Phases, (b) the definition of
      Systemic Defect applicable if only Phase 1 of the Solar Park is executed,
      (c) the price of
      the perimeter fences and the monitoring system (Scada) of the tracker hubs
      (cajas de concentración
      de los seguidores), (d) the increase of the
      Contract Price if applicable, arising from to the samples on the Site set
      forth in Clause 3(3) and the review of the licences and authorisations
      mentioned in section (ii) of Clause 3(1), and (e) the Contract Price
      for each of the Phases as an exclusive consequence of the abovementioned
      items.

            

    

    

    
      	
              III.  

            	
              Whereas
      the Owner has delivered to the Contractor documents set forth in sections
      (i) and (ii) of Whereas II above relating to Phase 1 and Parties have
      reached an agreement regarding items set forth in section (iii) of Whereas
      II above.

            

    

    

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    
      	
              IV.  

            	
              Whereas
      in order to formalize the agreement reached by the Parties on items
      mentioned in Whereas above, the Parties agree to execute this Contract in
      accordance with the following

            

    

    

    CLAUSES

    

    1.           DEFINED
TERMS

    

    All terms
in capital letters not expressly defined in this Contract should have the
meaning they have in the Construction Contract.

    

    2.           AMENDMENTS
AND ADDITIONS TO THE CONSTRUCTION CONTRACT

    

    
      	
              (1)

            	
              Authorizations and
      licenses: The Contractor declares that the Owner has delivered it
      all authorizations and licenses mentioned in Clause 3(1)(ii) of the
      Construction Contract regarding Phase 1 of the Solar Park (except for
      those that are intrinsic to the construction activity and ***) and, in
      particular, the following:

            

    

    

     

    
      	
              1.  

            	
              Letter
      from the Industry, Energy and Environmental Extremadura Ministry dated
      January 22, 2008 (sending stamp January 23,
  2008).

            

    

     

     

    
      	
              2.  

            	
              Decision
      of the General Directorate of Industrial and Energetic Planning of the
      Industry, Energy and Environmental Extremadura Ministry granting the
      condition of installation under the special regime dated September 27,
      2007.

            

    

     

     

    
      	
              3.  

            	
              Decision
      of the General Directorate of Industrial and Energetic Planning of the
      Industry, Energy and Environmental Extremadura Ministry regarding
      administrative authorization and approval of the execution project dated
      December 13, 2007.

            

    

     

     

    
      	
              4.  

            	
              Advertisement
      in the DOE of the administrative authorization and approval of the
      execution project (number 145 dated December 20,
  2007).

            

    

     

     

    
      	
              5.  

            	
              Evidence
      of bank guarantee issued by “Caja de Depósitos de la Junta de Extremadura”
      (o70002339).

            

    

     

     

    
      	
              6.  

            	
              Bank
      Guarantee issued by Caja Cantabria for amount of Euro 3,500,000 dated
      August 27, 2007.

            

    

     

     

    
      	
              7.  

            	
              Letter
      from Iberdrola to Solargen Proyectos e Instalaciones Solares dated
      September 7, 2007, regarding the connection
  point.

            

    

     

     

    
      	
              8.  

            	
              Letter
      from Solargen Proyectos e Instalaciones Solares to Iberdrola Distribución
      Eléctrica, dated November 17, 2007 (re.: execution Project already
      certified).

            

    

     

     

    
      	
              9.  

            	
              Letter
      from Solargen Proyectos e Instalaciones Solares to Iberdrola Distribución
      Eléctrica dated August 28, 2007.

            

    

     

    ***
CONFIDENTIAL MATERIAL REDACTED AND SEPARATELY FILED WITH THE SECURITIES AND
EXCHANGE COMMISSION.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    
      	
              10.  

            	
              Decision
      of the General Directorate of Environmental Quality and Evaluation of
      Extremadura dated November 20, 2007 by means of which the DIA is
      formulated.

            

    

     

     

    
      	
              11.  

            	
              Advertisement
      in the DOE if the project environmental impact declaration (number 142,
      December 13, 2007).

            

    

     

     

    
      	
              12.  

            	
              Decision
      of the General Directorate of Town Landing of the Public Works Extremadura
      Ministry dated December 11, 2007.

            

    

     

     

    
      	
              13.  

            	
              Works
      license granted by the Municipality of Casas de Don Pedro dated December
      12, 2007.

            

    

     

     

    
      	
              14.  

            	
              Report
      issued by the Development and Infrastructure Service of the Rural
      Development and Agriculture Extremadura Ministry dated January 21,
      2008.

            

    

     

     

    
      	
              15.  

            	
              Certificate
      issued by the Municipality of Casas de Don Pedro dated January 17,
      2008.

            

    

     

     

    
      	
              16.  

            	
              Reporto
      n measures to reduce arqueological impact issued by the Culture and
      Tourism Extremadura Ministry dated August 23,
  2007.

            

    

     

     

    
      	
              17.  

            	
              Due
      diligence report on the project issued by Ramon & Cajal on January 30,
      2008.

            

    

     

     

    
      	
              18.  

            	
              Archeological
      search draft report issued by TERA dated January 22,
  2008.

            

    

     

     

    
      	
              19.  

            	
              Letter
      from Ramón & Cajal to Solargen Proyectos e Instalaciones Solares dated
      January 31, 2008.

            

    

     

     

    
      	
              20.  

            	
              Letter
      issued by the Technical Advisor to Solargen Proyectos e Instalaciones
      Solares dated January 31, 2008.

            

    

     

    
      	
               
      

            	
              The
      Contractor declares to agree with the contents of the abovementioned
      documents being obliged to carry out workscorresponding to Phase 1
      according to the amendment to the original project of such Phase delivered
      to the Contractor by the Owner.

            

    

    

    Furthermore,
the Contractor declares that it is not necessary to amend the Contract Price for
Phase 1 on the basis of the contents of the abovementioned
documents.

    

    
      	
              (2)

            	
              Perimeter fences and
      the monitoring system: The Parties agree to increase the Contract
      Price by Euro *** euros. Such amount includes the price asked by the
      Contractor for the perimeter fences (Euro *** euros) and the monitoring
      system (Scada) of the tracker hubs (Euro *** euros) for both Phases of the
      solar Park.

            

    

    

    For the
seek of clarity, the Contractor delcares that the inlcusion of the perimeter
fences and the monitoring system in the Scope of the Work do not imply any
amendment except for the Contract Price increase mentioned in the paragraph
above (in particular, it does not imply any amendmet of terms set forth in the
Construction Contract).

     

    ***
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EXCHANGE COMMISSION.

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    
      	
              (3)

            	
              Site: The
      Contractor declares that it has carried out the samples in Site 1 and Site
      2 refered in Clause 3(3) of the Construction Contract and that it has
      received from the Owner and that it agrees on the content of the final
      geotechnic reports on Site 1 and Site 2. Based on the above, statements
      contained in Clause 3(3) of the Construction Contract will be effective as
      of today for Site 1 and Site 2. Furthermore, for purposes of Clause 3 (1)
      (iii) of the Construction Contract, the Contractor declares that as of
      today Site 1 is entirely available and accessible for the commencement of
      the Work of that Site.

            

    

    

    Notwithstanding
the above, the Owner and the Contractor have agreed that Site conditions arising
from samples imply additional Works to be carried out by the Contractor and,
therefore, an increase of the Contract Price by Euro ***.

    

    
      	
              (4)

            	
              Phases dimensión and
      definition of Systemic Defect Dimensión de las Fases
      y definición de Defecto Sistémico: The Parties have agreed that the
      Solar Park Phases will have the following size: (i) Phase 1, 40 Solar
      Facilities to be installed on Site 1, and (ii) Phase 2 (in case conditions
      set forth in the Construction Contract for this Phase being installed are
      fulfilled) 30 Solar Facilities to be installed on Site
  2.

            

    

    

    
      	
               
      

            	
              On
      the basis of the size of each Phase, the definition of Systemic Defect in
      the Construction Contract is replace by the
  following:

            

    

    

    
      	
               
      

            	
              Systemic Defect: is an
      operational failure of the Solar Facilities of the Solar Park occurring
      during the Production Guarantee Period that (i) is not caused by
      non-conforming performance of the Work by the Contractor under this
      Contract, the Technical Specifications, the Construction Model or the
      regulations applicable to the Work (in accordance with the terms of this
      Contract), and (ii) that:

            

    

    

    
      	
              (a)  

            	
              is
      the same failure or is a failure that affects, at least: 0.5% of the solar
      modules, 7 or more inverters or their corresponding peripheral systems, 7
      or more trackers, or 4 or more transformers (including breakers and
      switches) supplied by the same manufacturer for the Solar Park. In case only Phase 1
      is executed according to Clause 3(2),the failure should affect at least:
      0.5% of the solar modules, 4 or more inverters or their corresponding
      peripheral systems, 4 or more trackers, or 4 or more transformers
      (including breakers and switches) supplied by the same manufacturer for
      the Solar Park; or

            

    

    

    
      	
              (b)  

            	
              the
      relevant supplier or well-known independent third party in the solar
      industry reports that at least 1% of worldwide production of the
      corresponding model of solar module, inverter, tracker or transformer is
      affected by the same operational failure and advises replacement thereof
      (in which event the Owner must receive proof in the form of delivery of a
      document signed by the  manufacturer or of a report from an
      independent third party which confirms the existence of said systemic
      failure with reference to the model and series of the affected
      equipment).

            

    

    

    

    ***
CONFIDENTIAL MATERIAL REDACTED AND SEPARATELY FILED WITH THE SECURITIES AND
EXCHANGE COMMISSION.

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    

    

    
      	
              (5)

            	
              Based
      on the above, the Parties agree that the Contract Price amounts up to EURO
      *** (Euro ***€). References to Contract Price contained in Clause 4.1(1) of
      the Construction Contract shall be deemed as references made to this
      amount.

            

    

    

    The
Contract Price is divided between the Phases as follows: Euro *** for Phase 1 of the
Solar Park, and Euro *** for Phase 2 of the Solar Park (in case Phase 2 is
executed, without taking into account the price increase for Phase 2 that may
arise from licenses review according to Clause 3(1)(ii) of the Construction
Contract).

    

    3.           CONDITIONS
PRECEDENT FULFILLMENT

    

    
      	
              (1)

            	
              The
      Contractor and the Owner declare and accept, for all purposes contained in
      the Construction Contract, that Conditions Precedent set forth in sections
      (i) to (iv) of Clause 3(1) regarding commencement of Works of Phase 1 of
      the Solar Park have been fulfilled. Based on the above, commencement of
      the Works of Phase 1 is only subject to the fulfillment of section (v) of
      the abovementioned Clause within the term set forth in the Construction
      Contract.

            

    

    

    
      	
              (2)

            	
              Likewise,
      the Contractor and the Owner declare and accept, regarding Conditions
      Precedent for the commencement of the Works of Pahse 2, that they have
      already agreed on the price of the perimeter fence and the monitoring
      system and the cost arising for samples of Site 2. Therefore, without
      perjudice of the remaining Conditions Precedent for the commencement of
      the Works being fullfiled (i.e. conditions set forth in sections (i),
      (ii), (iii) and (v)), the Contractor accepts that no amendment to the
      Contract Price for Phase 2 should apply in any event for items regulated
      in section (iv) of Clause 3(1).

            

    

    

    4.           CONSTRUCTION
CONTRACT VALIDITY

    

    The
Construction Contract will remain in full force and effect except where
expressly amended according to this Contract.

    

    5.           LAW
AND JURISDICTION

    

    
      	
              (1)

            	
              This
      Contract and all issues that may arise between the Parties in relation
      hereto or in connection herewith shall be exclusively governed by
      generally applicable Spanish legislation, to which the Contractor and the
      Owner expressly submit.

            

    

    

    
      	
              (2)

            	
              The
      Parties agree that any litigation, dispute, issue or claim resulting from
      the performance or interpretation of this Contract, or directly or
      indirectly related hereto, shall be definitively resolved by arbitration
      at law before the Civil and Commercial Court of Arbitration (Corte Civil y Mercantil de
      Arbitraje (CIMA)) of Madrid in accordance with the Procedural
      Regulations thereof.

            

    

    

    ***
CONFIDENTIAL MATERIAL REDACTED AND SEPARATELY FILED WITH THE SECURITIES AND
EXCHANGE COMMISSION.

    

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    
      	
              (3)

            	
              The
      Arbitral Tribunal shall be composed of three (3) arbitrators appointed
      from CIMA’s list of arbitrators: one by the Contractor and the other by
      the Owner, and the two arbitrators so appointed shall appoint the third
      one, who shall act as chairman of the arbitral tribunal. Should the two
      first arbitrators fail to reach an agreement on the appointment of the
      third arbitrator within ten (10) Business Days following the date of
      acceptance of office by the second arbitrator, such arbitrator shall be
      appointed by CIMA.

            

    

    

    
      	
              (4)

            	
              The
      arbitration shall be conducted, and the award shall be rendered, in Madrid
      (Spain) and in the Spanish
language.

            

    

    

    
      	
              (5)

            	
              The
      Parties therefore expressly waive any other jurisdiction to which they may
      be entitled under Law, and commit to abide by and submit to the
      arbitration award that may be
rendered.

            

    

    

    
      	
              (6)

            	
              The
      Parties expressly waive any other jurisdiction that may apply and submit
      to the jurisdiction of the Courts and Tribunals of the city of Madrid for
      any litigation, dispute or claim that by mandate of law may not be
      resolved by, or submitted to, the arbitration provided under this Clause
      or, if applicable, for the formalization of the arbitration or the
      enforcement of the arbitral award.

            

    

    

    

    In
witness whereof, the Parties execute this Contract in two (2) counterparts, each
of them being an original and having the same effect, in the place and on the
date first set forth above.

    

    

    

    ____________________________

    SOLARGEN
PROYECTOS E INSTALACIONES SOLARES, S.L.

    Signed
Rafael Sánchez Castillo

    

    

    _____________________________

    SUNPOWER
ENERGY SYSTEMS SPAIN, S.L.

    Signed D.
Marco Antonio Northland

    

    

    6

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