Document:

Prepared by R.R. Donnelley Financial -- Amendment No. 1 to Note Purchase and Line of Credit Agreement

 Exhibit 10.22 
  
 AMENDMENT NO. 1 
  
 TO 
  
 NOTE PURCHASE AND LINE OF CREDIT AGREEMENT 
  
 This AMENDMENT NO. 1 TO NOTE PURCHASE AND LINE OF CREDIT AGREEMENT (as amended, restated and otherwise modified from time to time, this
“Amendment”) is entered into as of May 25, 2004 and effective as of March 3, 2003 (the “Effective Date”), by and between SUNPOWER CORPORATION a California corporation (“Company”) with its principal
executive office at 430 Indio Way, Sunnyvale, California 94085 and CYPRESS SEMICONDUCTOR CORPORATION, a Delaware corporation (“Purchaser”). 
  
 RECITALS 
  
 WHEREAS, Purchaser and Company are party to that certain Note Purchase and Line of Credit Agreement, dated as of May 30, 2002 (as amended, restated
or modified from time to time, the “Agreement”), pursuant to which, among other things: (i) Purchaser agreed to purchase certain unsecured senior convertible promissory notes from Company (each a “Note” and collectively
the “Notes”) under the terms set forth in Section 1 of the Agreement; (ii) Purchaser agreed to provide Company with cash borrowings, capital equipment, lines of credit or guarantees, up to an aggregate principal amount not to exceed
$25,000,000 (the “Maximum Amount”), as provided in Section 2 of the Agreement; and (iii) Company agreed to issue one or more warrants to purchase equity securities of Company under the terms and conditions set forth in the
Agreement. 
  
 WHEREAS, as of the date hereof, Company has
issued nine Notes in favor of Purchaser in an aggregate principal amount of $3,600,000 and pursuant to the terms of the Agreement, Company is no longer able to request borrowings from Purchaser pursuant to Section 1 of the Agreement. 
  
 WHEREAS, Purchaser has previously extended amounts pursuant to Section
2 of the Agreement pursuant to demand notes (the “Demand Notes”), which amounts are in the aggregate, in excess of the Maximum Amount, and now Company and Purchaser desire to amend certain provisions of the Agreement to: (i)
increase the Maximum Amount to $30,000,000; (ii) provide for the amendment and restatement of the Demand Notes into a single new note (as amended, restated or otherwise modified from time to time, the “Line of Credit Note”) to
reflect the increase in the Maximum Amount, and to revise and supplement certain other terms of the Demand Notes; (iii) provide for the issuance of a warrant to purchase common stock of Company relating to the increase in the Maximum Amount and in
replacement of any warrants previously issued under the Agreement and no longer outstanding; and (iv) make certain other amendments and modifications to the Agreement to reflect the terms of the lending arrangements between Company and Purchaser.

  
 AGREEMENT 
  
 NOW THEREFORE, in consideration of the foregoing, and the representations,
covenants and conditions set forth below, the parties hereto, intending to be legally bound, hereby agree as follows: 
  
 1. Defined Terms. Unless otherwise defined herein, capitalized terms used herein shall have the meanings, if any, assigned to such terms in the
Agreement. 

 2. Amendment of Agreement. Subject to the terms and conditions hereof, effective as of the
Effective Date, the Agreement is amended as follows: 
  
 (a)
Recital B to the Agreement is hereby amended by replacing “$25,000,000” in the third line of the recital with “$30,000,000 (the “Maximum Principal Amount).”. 
  
 (b) Section 1(a) of the Agreement is hereby amended by replacing the
words “Exhibit A” at the end of the third line, with the language “Exhibit A-1”. 
  
 (c) Section 2(a) of the Agreement is hereby amended by: (i) deleting the first sentence and replacing it with the following, “In addition to
the Notes referred to in Section 1 hereof, Purchaser may in its sole discretion, to the extent requested by Company: (i) provide cash advances to Company; (ii) provide Company with capital equipment for Company’s planned manufacturing facility
(“Capital Equipment”); (iii) provide Company with a line of credit, on commercially reasonable terms, to purchase Capital Equipment; (iv) provide guarantees to the Company for (A) one or more lines of credit for Company to purchase
Capital Equipment or (B) other purposes to be permitted in the sole discretion of the Purchaser; or (v) any combination of the foregoing. Each of the foregoing types of advances (each an “Advance” and collectively the
“Advances”) shall count towards the Maximum Principal Amount and shall be valued at the face or actual amount, including any guarantees, which shall reflect the face amount of the underlying obligations.”; and (ii) deleting the
remainder of Section 2(a). 
  
 (d) Section 2(b) is hereby
deleted in its entirety and replaced with the following: 
  
 “(b) Line of Credit Note. The Advances referred to it Section 2(a), above, will be made pursuant to a promissory note to be executed by Company in favor of Purchaser in substantially the form of Exhibit A-2 to this
Agreement (as amended, restated or modified from time to time, the “Line of Credit Note” and taken together with the Notes, the “Company Notes”), in an amount not to exceed the Maximum Principal Amount and
containing such terms and conditions as more fully set forth in the Line of Credit Note.” 
  
 (e) Section 2(c) is hereby deleted in its entirety and replaced with the following: 
  
 “(c) Advances. Company may request Advances under the Line of Credit Note from time to time in writing. Company may request Advances through
the earlier of March 1, 2005 or the occurrence of an Event of Default (as defined in the Line of Credit Note). Advances may be repaid at any time without penalty. Advances made under Section 2(a)(i) and Section 2(a)(ii) may not be repaid and
reborrowed, however, Advances under Section 2(a)(iii), (iv) or (v) (except to the extent including a portion under Sections 2(a)(i) or Section 2(a)(ii)) may be repaid reborrowed at such time that the line of credit or the obligation underlying the
guarantee is repaid, released and terminated in its entirety. “ 
  

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 (f) A new Section 3, is hereby added as follows, and the remaining Sections of the Agreement are
correspondingly renumbered: 
  
 “3. Warrant.

  
 Company shall issue Purchaser a warrant (the
“Warrant”) to purchase Company common stock, substantially in the form of Exhibit B hereto. As more fully set forth in the Warrant, the Warrant shall be exercisable for that number of shares of Company common stock equal to the quotient
obtained by dividing ten percent (10%) of the Maximum Principal Amount by $0.70, with a per share exercise price of $0.07.” 
  
 (g) Section 5 (as renumbered) is hereby amended to replace any references to “Note” or “Notes”, with references to
“Company Notes” and with such grammatical changes as necessary to reflect such amended references. 
  
 (h) The preamble to Section 6 (as renumbered) is hereby amended and restated in its entirety to read as follows: “Purchaser’s obligation
to purchase Notes at each Closing and to make any Advance under the Line of Credit Note under this Agreement, is subject to the satisfaction of all of the following conditions, any of which may be waived in whole or in part by the Purchaser:”.

  
 (i) Section 6(b) (as renumbered) is hereby amended by
replacing the term “Note” at the end of the Section with the language, “Company Note”. 
  
 (j) Section 6(c) (as renumbered) is hereby amended by: (i) replacing the word “Note” and the beginning of the second line with the
following, “Company Note” and (ii) replacing the words “the Note” at the end of the second line with the following language, “each Company Note”. 
  
 (k) Section 6(d) (as renumbered) is hereby amended and restated in its entirety to read as follows: 
  
 “(d) Company Notes. Each Company Note being purchased pursuant to this
Agreement, in the form attached hereto as Exhibit A-1 or Exhibit A-2, respectively, shall have been duly executed and delivered by the Company.” 
  
 (l) Section 7 (as renumbered) is hereby amended replacing each reference to “Notes” with a reference to “Company Notes” with
such grammatical changes as necessary to reflect such amended references. 
  
 (m) The heading to Exhibit A to the Agreement is hereby amended by replacing the words “Exhibit A” with the language “Exhibit A-1. 
  
 (n) A new Exhibit A-2, the Line of Credit Note, is hereby added as
Exhibit A-2 to the Agreement, in the form attached to this Amendment as Exhibit A. 
  
 (o) Exhibit B to the Agreement is hereby deleted in its entirety and replaced with the form of Warrant attached as Exhibit B to this Amendment. 
  
 3. Line of Credit Note and Warrant. Concurrently with the execution of
this Amendment, Purchaser and Company hereby agree to execute and deliver the Line of Credit Note and Company agrees to execute and deliver the Warrant. 
  

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 4. Reservation of Rights. Company acknowledges and agrees that neither the execution nor delivery
by Purchaser of this Amendment shall be deemed to create a course of dealing or otherwise obligate Purchaser to execute similar amendments under the same or similar circumstances in the future. 
  
 5. Limited Amendment/Execution. Except as expressly stated herein
above, Company and Purchaser intend that the terms and provisions of the Agreement remain unchanged and in full force and effect. 
  
 6. Miscellaneous. 
  
 (a) This Amendment shall be binding upon and inure to the benefit of the parties hereto and thereto and their respective successors and assigns. No third
party beneficiaries are intended in connection with this Amendment. 
  
 (b) This Amendment may be executed in any number of counterparts, each of which shall be deemed an original, but all such counterparts together shall constitute but one and the same instrument. Transmission of signatures of any party by
facsimile shall for all purposes be deemed the delivery of original, executed counterparts thereof. 
  
 (c) This Amendment may not be amended except in accordance with the provisions of Section 6(a) of the Agreement. 
  
 (d) If any term or provision of this Amendment shall be deemed prohibited by
or invalid under any applicable law, such provision shall be invalidated without affecting the remaining provisions of this Amendment or the Agreement, respectively. 
  
 [Remainder of this page intentionally left blank] 
  

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 IN WITNESS WHEREOF, the parties have caused this Amendment to be duly executed and delivered by their
proper and duly authorized officers as of the date first written above and effective as of the Effective Date. 
  

			
	COMPANY:
	
	 SUNPOWER CORPORATION
 a California
corporation

		
	By:	 	/s/ Jay Peir
	Name:	 	Jay Peir
	Title:	 	Chief Financial Officer
	
	PURCHASER:
	
	CYPRESS SEMICONDUCTOR CORPORATION
		
	By:	 	/s/ Neil H. Weiss
	Name:	 	Neil H. Weiss
	Title:	 	Vice President, Treasurer

  

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 EXHIBIT A 
  

FORM OF LINE OF CREDIT NOTE 

 THIS NOTE AND THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED.
THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THE SECURITIES UNDER SAID ACT OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO COMPANY THAT SUCH REGISTRATION IS’ NOT
REQUIRED. 
  
 SUNPOWER CORPORATION 
  
 LINE OF CREDIT NOTE 
  
 This line of credit note (this “Note”) amends and restates in
their entirety each of those certain demand notes dated as of March 3, 2003, April 1, 2003, April 23, 2003, June 10, 2003, July 9, 2003, August 7, 2003, September 10, 2003, October 22, 2003 and January 26, 2004, issued by Company (as defined below)
in favor of Holder (as defined below). This Note is the “Line of Credit Note” under the Note Purchase Agreement (as defined below) and is effective as of May 30, 2002 (the “Effective Date”). 
  

  

			
	$30,000,000	  	 May 25, 2004
 San Jose, California

  
 FOR VALUE RECEIVED,
SUNPOWER CORPORATION, a California corporation (“Company”) promises to pay to CYPRESS SEMICONDUCTOR CORPORATION, a Delaware corporation (“Holder”), or its registered assigns, the aggregate principal amount of Thirty Million
Dollars ($30,000,000) (the “Maximum Principal Amount”) or such lesser amount outstanding as of the date of payment, together with accrued interest thereon as provided in Section 3 of this Note. The aggregate outstanding principal amount of
this Note plus accrued and unpaid interest thereon shall be due and payable on the earlier to occur of the Maturity Date or such time when the Obligations are accelerated in accordance with the terms of this Note following an Event of Default
hereunder. 
  
 The parties hereto may from time to time indicate
each Advance on Schedule I to this Note, but which shall not be dispositive evidence as to the outstanding indebtedness hereunder without the written confirmation of Holder. 
  
 1. Definitions. As used in this Note, the following capitalized terms have the following meanings: 

 
 (a) “Advance” has the meaning given to
such term in the Note Purchase Agreement. 
  
 (b)
“Affiliate,” with respect to any Person, means (i) any director, officer or employee of such Person, (ii) any Person directly or indirectly controlling or controlled by or under 

 
direct or indirect common control with such Person, and (iii) any Person beneficially owning or holding 5% or more of any class of voting securities of such
Person or any corporation of which such Person beneficially owns or holds, in the aggregate, 5% or more of any class of voting securities. The term “control” means the possession, directly or indirectly, of the power to direct or cause the
direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise. 
  
 (c) “Event of Default” has the meaning given to such term in Section 6 hereof. 
  
 (d) “Holder” shall mean the Person
specified in the Recitals to this Note or any Person who shall at the time be the registered holder of this Note. 
  
 (e) “Lien” shall mean, with respect to any property, any security interest, mortgage, pledge, lien, claim, charge or
other encumbrance in, of, or on such property or the income therefrom, including, without limitation, the interest of a vendor or lessor under a conditional sale agreement, capital lease or other title retention agreement, or any agreement to
provide any of the foregoing, and the filing of any financing statement or similar instrument under the Uniform Commercial Code of the State of California or comparable law of any jurisdiction. 
  
 (f) “Note Purchase Agreement” shall mean
the Note Purchase and Line of Credit Agreement, dated May 30, 2002, as amended, modified or, supplemented from time to time, entered into by and between Company and Holder. 
  
 (g) “Obligations” shall mean and include all loans, advances, debts, liabilities and
obligations, howsoever arising, owed by Company to Holder of every kind and description (whether or not evidenced by any note or instrument and whether or not for the payment of money), now existing or hereafter arising under or pursuant to the
terms of this Note and the Note Purchase Agreement, including all interest, fees, charges, expenses, attorneys’ fees and costs and accountants’ fees and costs chargeable to and payable by Company hereunder and thereunder, in each case,
whether direct or indirect, absolute or contingent, due or to become due, and whether or not arising after the commencement of a proceeding under Title 11 of the United States Code (11 U.S.C. Section 101 et seq), as amended from time to time
(including post-petition interest) and whether or not allowed or allowable as a claim in any such proceeding. 
  
 (h) “Person” shall mean and include an individual, a partnership, a corporation (including a business trust), a joint
stock company, a limited liability company, an unincorporated association, a joint venture or other entity or a governmental authority. 
  
 (i) “Senior Indebtedness” shall mean the principal of (and premium, if any), unpaid interest on and amounts reimbursable,
fees, expenses, costs of enforcement and other amounts due in connection with, (i) indebtedness of Company to banks, commercial finance lenders, insurance companies, leasing or equipment financing institutions or other lending institutions regularly
engaged in the business of lending money (excluding venture capital, investment banking or similar institutions which sometimes engage in lending activities but which are primarily engaged in investments in equity securities), which is for money
borrowed, or purchase or leasing of equipment in the case of lease or other equipment financing, whether or not secured, and (ii) any such 

  

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indebtedness or any debentures, notes or other evidence of indebtedness issued in exchange for such Senior Indebtedness, or any indebtedness arising from the
satisfaction of such Senior Indebtedness by a guarantor. 
  
 (j) “SVB Agreement” shall mean the Loan and Security Agreement dated as of September 25, 2003, entered into by and between Holder and Silicon Valley Bank. 
  
 2. Advances. Company may request and Holder shall make an
Advance as provided in the Note Purchase Agreement. In no event will Holder be obligated to make any Advance (i) if an Event of Default has occurred and is continuing, and/or (ii) after March 31, 2005 and/or (ii) to the extent the aggregate
principal amount of all outstanding Advances would exceed the Maximum Principal Amount. 
  
 3. Interest. 
  
 (a) General. Interest shall accrue on the outstanding principal amount of this Note at an annual rate of seven percent simple interest, until the outstanding principal amount of this Note shall be paid in full.

  
 (b) Guarantees. Advances constituting
guarantees made pursuant to Section 2(a)(iv) of the Note Purchase Agreement shall not bear interest (but shall be considered part of the aggregate principal amount hereof for all other purposes) with respect to a particular guarantee for so long as
such guarantee remains undrawn and Holder is not required to make any payment or otherwise advance funds with respect thereto. At such time as Holder is required to make any payment or other advance of funds with respect such guaranty, the entire
amount paid or advanced by Holder shall bear interest as provided in Section 3(a), above. 
  
 4. Payment. From the Effective Date through May 1, 2004, interest will accrue on this Note as provided in Section 3 hereof. Beginning on June 1, 2004 and on the first business day of each month
thereafter through May 1, 2007, Company will make payments to Holder of accrued interest on the outstanding aggregate principal amount of this Note (subject to Section 3(b)) for the preceding month, based on a month of thirty-days and a year of
twelve thirty-day months. Thereafter, the outstanding principal balance under this Note plus accrued and unpaid interest thereon (subject to Section 3(b)) shall be fully amortized and payable in sixty (60) consecutive equal monthly payments. Each
such principal and interest payment shall be payable on the first business day of each month commencing June 2007 with the last payment to be made on the first business day of May 2012. 
  
 5. Prepayment. 
  
 (a) General. Upon ten (10) days prior written notice to Holder, Company may prepay this Note in whole or in part without penalty or
premium; provided, however, that Company may not make partial prepayments more frequently than once in any given calendar quarter. Any prepayment shall include the interest accumulated since the last payment under the Note on the principal being
prepaid. Amounts prepaid may not be reborrowed except as provided in the Note Purchase Agreement. 
  

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 (b) Optional Prepayment Upon an Equity Financing. If after the Effective Date
Company raises in an equity financing gross proceeds in excess of Ten Million Dollars ($ 10,000,000) (excluding therefrom proceeds attributable to the sale of equity to Holder or any of its successors, assigns or Affiliates), then, upon the election
of Holder made within ten (10) days of notice by Company to Holder of the closing of such financing, such amount of the outstanding principal balance of this Note as may be determined in the sole discretion of Holder, but not to exceed fifty percent
(50%) of the net proceeds received by Company from such equity financing, shall be prepaid within five (5) days after receipt by Company of Holder’s election. As used in this Section 5(b) “net proceeds” means the proceeds received by
Company after deducting the fees and costs incurred by Company and paid or payable to investment banking, legal, and accounting professionals in connection with the equity financing. 
  
 6. Events of Default. The occurrence of any of the following shall constitute an “Event of Default”
under this Note: 
  
 (a) Failure to Pay.
Company shall fail to pay when due any principal or interest payment and such payment shall not have been made within five (5) days thereafter; 
  
 (b) Other Notes. A default or event of default shall occur and be continuing under any other Company Note (as defined in the Note
Purchase Agreement); 
  
 (c) Voluntary
Bankruptcy or Insolvency Proceedings. Company or any of its Subsidiaries shall (i) apply for or consent to the appointment of a receiver, trustee, liquidator or custodian of itself or of all or a substantial part of its property, (ii) be unable,
or admit in writing its inability, to pay its debts generally as they mature, (iii) make a general assignment for the benefit of its or any of its creditors, (iv) be dissolved or liquidated, (v) become insolvent (as such term may be defined or
interpreted under any applicable statute), (vi) commence a voluntary case or other proceeding seeking liquidation, reorganization or other relief with respect to itself or its debts under any bankruptcy, insolvency or other similar law now or
hereafter in effect or consent to any such relief or to the appointment of or taking possession of its property by any official in an involuntary case or other proceeding commenced against it, or (vii) take any action for the purpose of effecting
any of the foregoing; 
  
 (d) Involuntary
Bankruptcy or Insolvency Proceedings. Proceedings for the appointment of a receiver, trustee, liquidator or custodian of Company or any of its Subsidiaries or of all or a substantial part of the property thereof, or an involuntary case or other
proceedings seeking liquidation, reorganization or other relief with respect to Company or any of its Subsidiaries or the debts thereof under any bankruptcy, insolvency or other similar law now or hereafter in effect shall be commenced and an order
for relief entered or such proceeding shall not be dismissed or discharged within thirty (30) days of commencement; 
  
 (e) SVB Agreement Covenant Default. Company causes Holder to default on its SVB Agreement due to violating a covenant in Section 7
of the SVB Agreement; or 
  
 (f)
Acquisition. If (i) Company merges with or into or consolidates with another Person in which Company is not the surviving entity (other than a merger effectuated solely for the 

  

 4 

 
purpose of changing Company’s jurisdiction of formation), (ii) Company sells, exclusively licenses or leases all or substantially all of Company’s
assets and properties, or (iii) any other form of corporate reorganization occurs in which the shareholders of Company immediately prior to such corporate reorganization do not own a majority of the outstanding shares of the surviving corporation by
virtue of their shares in Company. 
  
 7. Rights of Holder
upon Default. Upon the occurrence or existence of any Event of Default other than described in Section 6(c) or Section 6(d), and at any time thereafter during the continuance of such Event of Default, Holder may by written notice to Company,
declare all outstanding Obligations payable by Company hereunder to be immediately due. Upon the occurrence or existence of any Event of Default described in Section 6(c) or Section 6(d), immediately and without notice, all outstanding Obligations
payable by Company hereunder shall automatically become immediately due and payable, without presentment, demand, protest or any other notice of any kind, all of which are hereby expressly waived, anything contained herein to the contrary
notwithstanding. In addition to the foregoing remedies, upon the occurrence or existence of any Event of Default, Holder may exercise any other right power or remedy granted to it by this Note or otherwise permitted to it by law, either by suit in
equity or by action at law, or both. 
  
 8. No
Subordination. Except for Company’s obligations for the Senior Indebtedness (as specifically defined in this Note), to which the indebtedness evidenced by this Note is expressly subordinated, the repayment obligations of Company set
forth in this Note and the indebtedness evidenced hereby shall be senior in right of payment to, and shall not subordinate to or be subject to the prior payment of interest, principal or otherwise (whether in cash or cash equivalents), or to the
maturity of, any existing or future indebtedness of Company. The indebtedness evidenced by this Note is hereby expressly subordinated, to the extent and in the manner hereinafter set forth, in right of payment to the prior payment in full of all of
Company’s Senior Indebtedness. 
  
 (a)
Insolvency Proceedings. If there shall occur any receivership, insolvency, assignment for the benefit of creditors, bankruptcy, reorganization, or arrangements with creditors (whether or not pursuant to bankruptcy or other insolvency laws),
sale of all or substantially all of the assets, dissolution, liquidation, or any other marshaling of the assets and liabilities of Company, (i) no amount shall be paid by Company in respect of the principal of, interest on or other amounts due with
respect to this Note at the time outstanding, unless and until the principal of and interest on the Senior Indebtedness then outstanding shall be paid in full, and (ii) no claim or proof of claim shall be filed with Company by or on behalf of Holder
of this Note which shall assert any right to receive any payments in respect of the principal of and interest on this Note except subject to the payment in full of the principal of and interest on all of the Senior Indebtedness then outstanding.

  
 (b) Default on Senior Indebtedness. If
there shall occur an event of default which has been declared in writing with respect to any Senior Indebtedness, as defined therein, or in the instrument under which it is outstanding, permitting the holder to accelerate the maturity thereof and
Holder shall have received written notice thereof from the holder of such Senior Indebtedness, then, unless and until such event of default shall have been cured or waived or shall have ceased to exist, or all Senior Indebtedness shall have been
paid in full, no payment shall be made in respect of the principal of or interest on this Note, unless within one hundred eighty (180) days after the happening of such event of default, the’ maturity of such Senior Indebtedness shall not have
been accelerated. Not more than one notice may be given to Holder pursuant to the terms of this Section 8(b) during any 360-day period. 
  

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 (c) Further Assurances. By acceptance of this Note, Holder agrees to execute and
deliver customary forms of subordination agreement requested from time to time by holders of Senior Indebtedness, and as a condition to Holder’s rights hereunder, Company may require that Holder execute such forms of subordination agreement;
provided that such forms shall not impose on Holder terms less favorable than those provided herein. 
  
 (d) Other Indebtedness. No future indebtedness shall be senior in any respect to the indebtedness represented by this Note without
the consent of Holder. Also, Company shall not enter into any debt financing representing obligations or potential obligations in excess of five hundred thousand ($500,000) without the prior written consent of Holder. Exhibit A, to this Note lists
all Company debt that is senior to this Note as of the Effective Date and the date hereof. 
  
 (e) Subrogation. Subject to the payment in full of all Senior Indebtedness, Holder shall be subrogated to the rights of the
holder(s) of such Senior Indebtedness (to the extent of the payments or distributions made to the holder(s) of such Senior Indebtedness pursuant to the provisions of this Section 8) to receive payments and distributions of assets of Company
applicable to the Senior Indebtedness. No such payments or, distributions applicable to the Senior Indebtedness shall, as between Company and its creditors, other than the holders of Senior Indebtedness and Holder, be deemed to be a payment by
Company to or on account of this Note; and for purposes of such subrogation, no payments or distributions to the holders of Senior Indebtedness to which Holder would be entitled except for the provisions of this Section 8 shall, as between Company
and its creditors, other than the holders of Senior Indebtedness and Holder, be deemed to be a payment by Company to or on account of the Senior Indebtedness. 
  

(f) No Impairment. Subject to the rights, if any, of the holders of Senior Indebtedness under this Section 8 to receive cash,
securities or other properties otherwise payable or deliverable to Holder, nothing contained in this Section 8 shall impair, as between Company and Holder, the obligation of Company, subject to the terms and conditions hereof, to pay to Holder the
principal hereof and interest hereon as and when the same become due and payable, or shall prevent Holder, upon default hereunder, from exercising all rights, powers and remedies otherwise provided herein or by applicable law. 
  
 (g) Lien Subordination. Any Lien of Holder, whether
now or hereafter existing in connection with the amounts due under this Note, on any assets or property of Company or any proceeds or revenues therefrom which Holder may have at any time as security for any amounts due and obligations under this
Note shall be subordinate to all Liens now or hereafter granted to a holder of Senior Indebtedness by Company or by law, notwithstanding the date, order or method of attachment or perfection of any such Lien or the provisions of any applicable law.

  
 (h) Reliance of Holders of Senior
Indebtedness. Holder, by its acceptance hereof, shall be deemed to acknowledge and agree that the foregoing subordination provisions are, and are intended to be, an inducement to and a consideration of each holder of Senior Indebtedness, whether
such Senior Indebtedness was created or acquired before or after the creation of the indebtedness 

  

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evidenced by this Note, and each such holder of Senior Indebtedness shall be deemed conclusively to have relied on such subordination provisions in acquiring
and holding, or in continuing to hold, such Senior Indebtedness. 
  
 9. Successors and Assigns. Subject to the restrictions on transfer described in Sections 11 and 12 below, the rights and obligations of Company and Holder of this Note shall be binding upon and benefit the successors, assigns,
heirs, administrators and transferees of the parties. 
  
 10.
Waiver and Amendment. Any provision of this Note may be amended, waived or modified upon the written consent of Company and Holder. 
  
 11. Transfer of this Note. This Note may be transferred to an Affiliate of Holder. With respect to any other offer, sale or other
disposition of this Note, Holder will give written notice to Company prior thereto, describing briefly the manner thereof, together with a written opinion of Holder’s counsel, to the effect that such offer, sale or other distribution may be
effected without registration or qualification (under any federal or state law then in effect). Upon receiving such written notice and a reasonably satisfactory opinion of counsel, if so requested, Company, as promptly as practicable, shall notify
Holder that Holder may sell or otherwise dispose of this Note, all in accordance with the terms of the notice delivered to Company. If a determination has been made pursuant to this Section 12 that the opinion of counsel for Holder is not reasonably
satisfactory to Company, Company shall so notify Holder promptly after such determination has been made. Upon transfer this Note shall retain the legend as to the applicable restrictions on transferability in order to ensure compliance with the
Securities Act of 1933, as amended (the “Act”), unless in the opinion of counsel for Company such legend is not required in order to ensure compliance with the Act. Company may issue stop transfer instructions to its transfer agent in
connection with such restrictions. Subject to the foregoing, transfers of this Note shall be registered upon registration books maintained for such purpose by or on behalf of Company. Prior to presentation of this Note for registration of transfer,
Company shall treat the registered holder hereof as the owner and holder of this Note for the purpose of receiving all payments of principal and interest hereon and for all other purposes whatsoever, whether or not this Note shall be overdue and
Company shall not be affected by notice to the contrary. 
  
 12.
Assignment by Company. Neither this Note nor any of the rights, interests or obligations hereunder may be assigned, by operation of law or otherwise, in whole or in part, by Company without the prior written consent of Holder.

  
 13. Notices. Any notice, request or other
communication required or permitted hereunder shall be in writing and shall be deemed to have been duly given if personally delivered or mailed by registered or certified mail, postage prepaid, or by recognized overnight courier or personal delivery
at the respective addresses of the parties as set forth on the register maintained by Company. Any party hereto may by notice so given change its address for future notice hereunder. Notice shall conclusively be deemed to have been given when
received. 
  
 14. Pari Passu Notes. Holder
acknowledges and agrees that the payment of all or any portion of the outstanding principal amount of this Note and all interest hereon shall be pari passu in right of payment and in all other respects to (i) all other Company Notes (as defined in
the Note 
  

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Purchase Agreement) issued pursuant to the Note Purchase Agreement and (ii) that promissory note issued by Company to Holder dated February 11, 2003 in the
principal amount of $2,500,000. 
  
 15. Payment.
Payment shall be made in lawful currency of the United States. 
  
 16. Expenses; Waivers. If action is instituted to collect this Note, Company promises to pay all costs and expenses, including, without limitation, reasonable attorneys’ fees and costs, incurred in connection with such
action. Except as otherwise provided herein, Company hereby waives notice of default, presentment or demnd for payment, protest or notice of nonpayment or dishonor and all other notices or demands relative to this instrument. 
  
 17. Governing Law. This Note and all actions arising out of or
in connection with this Note shall be governed by and construed in accordance with the laws of the State of California, without regard to the conflicts of law provisions of the State of California, or of any other state. 
  
 [Remainder of this page intentionally left blank] 
  

 8 

 IN WITNESS WHEREOF, the undersigned have caused this Note to be issued as of the date first written
above. 
  

			
	COMPANY:
	
	SUNPOWER CORPORATION
		
	By:	 	 /s/ Jay Peir

	Title:	 	Chief Financial Officer
	
	AGREED AND ACCEPTED:
	
	HOLDER:
	
	CYPRESS SEMICONDUCTOR CORPORATION
		
	By:	 	 /s/ Neil H. Weiss

	Title:	 	Vice President, Treasurer

  

 9 

 SCHEDULE 1 
  

To Line of Credit Note 
  

							
	 DATE
 ADVANCE
 FUNDED

	  	 PRINCIPAL
 AMOUNT OF
 ADVANCE

	  	 COMPANY
 ACKNOWLEDGMENT

	  	 HOLDER
 ACKNOWLEDGMENT

	03/03/03	  	530,862.00	  	 	  	 
	04/01/03	  	600,000.00	  	 	  	 
	04/23/03	  	860,000.00	  	 	  	 
	06/10/03	  	1,500,000.00	  	 	  	 
	07/09/03	  	1,100,000.00	  	 	  	 
	08/07/03	  	6,300,000.00	  	 	  	 
	09/10/03	  	4,600,000.00	  	 	  	 
	10/22/03	  	7,600,000.00	  	 	  	 
	1/26/04	  	5,500,000.00	  	 	  	 

 EXHIBIT A 
  
 SUNPOWER CORPORATION - EXISTING SENIOR INDEBTEDNESS 
  
 None. 

 EXHIBIT B 
  
 Warrant 

 THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933. SUCH
SECURITIES AND ANY SECURITIES OR SHARES ISSUED HEREUNDER MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN EXEMPTION THEREFROM UNDER SAID ACT. COPIES OF THE AGREEMENT COVERING THE PURCHASE OF THESE SECURITIES AND RESTRICTING
THEIR TRANSFER OR SALE MAY BE OBTAINED AT NO COST BY WRITTEN REQUEST MADE BY THE HOLDER OF RECORD HEREOF TO THE SECRETARY OF THE COMPANY AT ITS PRINCIPAL EXECUTIVE OFFICES. 
  

			
	 No. WC-  
	 	4,285,715 shares

  
 WARRANT TO PURCHASE
COMMON STOCK 
 OF 
 SUNPOWER
CORPORATION 
  
 This certifies that, for value received, to wit
the purchase of an unsecured promissory note dated                     , 2003 (the “Note”) of SUNPOWER CORPORATION, a California
corporation (the “Company”), CYPRESS SEMICONDUCTOR CORPORATION, a Delaware corporation (“Holder”) is entitled, subject to the terms and conditions set forth below, to purchase from the Company, in whole or in part, up to
4,285,715 fully paid and nonassessable shares of Common Stock of the Company (the “Warrant Shares”) at a purchase price per share of $0.07 (the “Exercise Price”). The rights, preferences, privileges and restrictions of the
Warrant Shares are set forth in the Company’s Amended and Restated Articles of Incorporation as in effect on the date hereof. The number, character and Exercise Price of such shares of Common Stock are subject to adjustment as provided below
and all references to “Warrant Shares” and “Exercise Price” herein shall be deemed to include any such adjustment or series of adjustments. The term “Warrant” as used herein shall mean this Warrant, and any warrants
delivered in substitution or exchange therefor as provided herein. 
  
 1.
Exercisability of Warrant. Subject to the terms and conditions set forth herein, this Warrant shall be exercisable during the term commencing on the date hereof and ending at 5:00 p.m., Pacific Standard Time, on
                    , 2113 (the “Warrant Expiration Date”). At any time prior to the Warrant Expiration Date, this Warrant may be
exercised in whole or in part, cumulatively as to that percentage of the Warrant Shares equal to the quotient obtained by dividing the largest unpaid principal balance outstanding under the Note on any date subsequent to the date set forth on page 8
below by $30,000,000; provided, however, that this Warrant shall become exercisable as to all of the remaining Warrant Shares (a) if prior to the first business day in March, 2005, the Company has not requested to borrow monies from Holder under the
Note such that if Holder had acceded to such requests the largest unpaid principal balance under the Note from the date of the Note through the first business day in March, 2005, would be $30,000,000 or (b) if, prior to the first business day in
March, 2005, either the Company conducts an initial public offering of its stock registered with the SEC or all or substantially all of the assets of the Company or more than eighty percent (80%) of the outstanding stock of the Company is sold,
including via merger, to a person or entity other than Cypress or an affiliate of Cypress as the term affiliate is defined in SEC Rule 405. 

 2. Exercise of Warrant. This Warrant may be exercised by the Holder by the surrender of this Warrant to the
Company, with the Notice of Exercise annexed hereto duly completed and executed on behalf of the Holder, at the office of the Company (or such other office or agency of the Company as it may designate by notice in writing to the Holder appearing on
the books of the Company) during the Exercise Period, and: 
  
 A.
If the Holder elects to exercise this Warrant in cash, the delivery of payment to the Company, for the account of the Company, by cash, wire transfer of immediately available funds to a bank account specified by the Company, or by certified or bank
cashier’s check, of the Exercise Price for the number of Warrant Shares specified in the Exercise Notice in lawful money of the United States of America; or 
  
 B. If the Holder elects to make a Net Issue Exercise without the payment of cash, the election to receive a number of shares
equal to the value (as determined below) of this Warrant (or the portion thereof being canceled), as set forth on the Exercise Notice and calculated using the following formula: 
  

							
	X	 	=	 	(Y)(A – B)	  	 
	 	 	      A

  

					
	Where:	  	X -	 	The number of shares of Common Stock to be issued to Holder.
			
	 	  	Y -	 	The number of shares of Common Stock subject to this Warrant at the date of exercise or, if only a portion of the Warrant is being exercised, the portion of the Warrant being
cancelled.
			
	 	  	A -	 	The fair market value of one share of Common Stock.
			
	 	  	B -	 	Exercise Price (as adjusted to the date of such calculations)

  
 For purposes of this
Section 2(B), if the Common Stock is traded in a public market, the fair market value of the Common Stock shall be the closing price of the Common Stock reported for the business day immediately before Holder delivers its Notice of Exercise to the
Company. If the Common Stock is not traded in a public market, the Company’s Board of Directors shall determine fair market value in their good faith judgment. 
  
 The Company agrees that such Warrant Shares shall be deemed to be issued to the Holder as the record holder of such Warrant
Shares as of the close of business on the date on which this Warrant shall have been surrendered and payment made for the Warrant Shares as aforesaid. A stock certificate or certificates for the Warrant Shares specified in the Exercise Form shall be
delivered to the Holder as promptly as practicable, and in any event within 10 days, thereafter. If this Warrant shall have been exercised only in part, the Company shall, at the time of delivery of the stock certificate or certificates, deliver to
the Holder a new Warrant evidencing the rights to purchase the remaining Warrant Shares, which new Warrant shall in all other respects be identical with this Warrant. No adjustments shall be made on Warrant Shares issuable on the exercise of this
Warrant for any cash dividends paid or payable to holders of record of Common Stock prior to the date as of which the Holder shall be deemed to be the record holder of such Warrant Shares. 
  

 -2- 

 3. Replacement of Warrant. On receipt of evidence reasonably satisfactory to the Company of the loss, theft,
destruction or mutilation of this Warrant and, in the case of loss, theft or destruction, on delivery of an indemnity agreement reasonably satisfactory in form and substance to the Company or, in the case of mutilation, on surrender and cancellation
of this Warrant, the Company at its expense shall execute and deliver, in lieu of this Warrant, a new warrant of like tenor and amount. 
  
 4. Rights of Warrant Holder. Subject to Sections 7 and 9 of this Warrant, the Holder shall not be entitled to vote or receive dividends or be deemed the holder of
Common Stock or any other securities of the Company that may at any time be issuable on the exercise hereof for any purpose, nor shall anything contained herein be construed to confer upon the Holder, as such, any of the rights of a shareholder of
the Company or any right to vote for the election of directors or upon any matter submitted to shareholders at any meeting thereof, or to give or withhold consent to any corporate action (whether upon any recapitalization, issuance of stock,
reclassification of stock, change of par value, or change of stock to no par value, consolidation, merger, conveyance, or otherwise) or to receive notice of meetings, or to receive dividends or subscription rights or otherwise until the Warrant
shall have been exercised as provided herein. 
  
 5. Transfer of Warrant.

  
 A. Warrant Register. The Company will maintain a
register (the “Warrant Register”) containing the name and address of the Holder. The Holder of this Warrant may change its address as shown on the Warrant Register by written notice to the Company requesting such change. Any notice or
written communication required or permitted to be given to the Holder may be delivered or given by mail to such Holder as shown on the Warrant Register and at the address shown on the Warrant Register. Until this Warrant is transferred on the
Warrant Register of the Company, the Company may treat the Holder as shown on the Warrant Register as the absolute owner of this Warrant for all purposes, notwithstanding any notice to the contrary. 
  
 B. Warrant Agent. The Company may, by written notice to the Holder,
appoint an agent for the purpose of maintaining the Warrant Register referred to in Section 5(A) above, issuing the Warrant Shares or other securities then issuable upon the exercise of this Warrant, exchanging this Warrant, replacing this Warrant,
or any or all of the foregoing. Thereafter, any such registration, issuance, exchange, or replacement, as the case may be, shall be made at the office of such agent. 
  
 C. Transferability and Nonnegotiability of Warrant. This Warrant may be transferred to a wholly owned subsidiary of
Holder, and, with the prior written consent of the Company, which may be granted or withheld in the sole discretion of the Company, to other entities or persons. This Warrant may not be transferred or assigned without compliance with all applicable
federal and state securities laws by the transferor and the transferee (including the delivery of investment representation letters and legal opinions reasonably satisfactory to the Company, if such are requested by the Company). However, no
investment representation letter 

  

 -3- 

 
or opinion of counsel shall be required for any transfer of this Warrant or any shares of Common Stock issued upon exercise hereof or conversion thereof in
compliance with Rule 144 or Rule 144A of the Securities Act of 1933, as amended (the “Securities Act”). Subject to the provisions of this Warrant with respect to compliance with the Securities Act, title to this Warrant may be transferred
by endorsement (by the Holder executing the Assignment Form annexed hereto) and delivery in the same manner as a negotiable instrument transferable by endorsement and delivery. 
  
 D. Exchange of Warrant Upon a Transfer. On surrender of this Warrant for exchange, properly endorsed on the
Assignment Form and subject to the provisions of this Warrant with respect to compliance with the Securities Act and with the limitations on assignments and transfers as contained in this Section 5, the Company at its expense shall issue to or on
the order of the Holder a new warrant or warrants of like tenor, in the name of the Holder or as the Holder (on payment by the Holder of any applicable transfer taxes) may direct, for the number of Warrant Shares issuable upon exercise hereof.

  
 E. Compliance with Securities Laws. 
  
 i. The Holder of this Warrant, by acceptance hereof,
represents that it is an “accredited investor” within the meaning of Rule 501 under the Securities Act, as presently in effect. 
  
 ii. The Holder acknowledges that this Warrant and the shares of Common Stock to be issued upon exercise thereof are being acquired solely
for the Holder’s own account and not as a nominee for any other party, and for investment, and that the Holder will not offer, sell or otherwise dispose of this Warrant or any shares of Common Stock to be issued upon exercise thereof except
under circumstances that will not result in a violation of the Securities Act or any applicable state securities laws. Upon exercise of this Warrant, the Holder shall, if requested by the Company, confirm in writing, in a form satisfactory to the
Company, that the shares of Common Stock so purchased are being acquired solely for the Holder’s own account and not as a nominee for any other party, for investment, and not with a view toward distribution or resale. 
  
 iii. This Warrant and all shares of Common Stock issued upon
exercise hereof shall be stamped or imprinted with a legend in substantially the following form (in addition to any legend required by state securities laws): 
  

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933. SUCH SECURITIES AND ANY SECURITIES OR SHARES ISSUED
HEREUNDER MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN EXEMPTION THEREFROM UNDER SAID ACT. COPIES OF THE AGREEMENT COVERING THE PURCHASE OF THESE SECURITIES AND RESTRICTING THEIR TRANSFER OR SALE MAY BE OBTAINED AT NO
COST BY WRITTEN REQUEST MADE BY THE HOLDER OF RECORD HEREOF TO THE SECRETARY OF THE COMPANY AT ITS PRINCIPAL EXECUTIVE OFFICES. 
  

 -4- 

 The Company agrees to remove promptly, upon the request of the holder of this Warrant and Securities
issuable upon exercise of the Warrant, the legend set forth in Section 5(E)(iii) above from the documents/certificates for such securities upon full compliance with this Agreement and Rules 144 and 145. 
  
 6. Reservation of Stock. The Company represents, warrants and covenants that:

  
 A. The Company has reserved from its authorized and unissued
shares of Common Stock (or other shares issuable upon exercise of the Warrant) a sufficient number of shares to provide for the issuance of the Warrant Shares upon the exercise of this Warrant. 
  
 B. Upon issuance by the Company of the Warrant Shares pursuant to exercise of
this Warrant as provided herein and receipt by the Company of the Exercise Price, the Warrant Shares so purchased and issued shall be fully paid, non-assessable and free from all taxes, liens and charges in respect of the issue thereof (provided
that the Holder shall bear any taxes in respect of any contemporaneously occurring transfer thereof effected at the request of the Holder). 
  
 C. This Warrant has been duly authorized and executed by the Company, and is a valid and binding obligation of the Company enforceable in accordance with
its terms. The Company will not amend the rights, preferences, privileges or restrictions of the Common Stock without the affirmative consent of the Holder. 
  
 7. Notices. 
  
 A. Whenever the Exercise Price or number of shares purchasable hereunder shall be adjusted pursuant to Section 9 hereof, the Company shall issue a
certificate signed by its Chief Financial Officer setting forth, in reasonable detail, the event requiring the adjustment, the amount of the adjustment, the method by which such adjustment was calculated, and the Exercise Price and number of shares
purchasable hereunder after giving effect to such adjustment, and shall cause a copy of such certificate to be mailed (by first-class mail, postage prepaid) to the Holder of this Warrant. 
  
 B. In case: 
  
 i. the Company shall take a record of the holders of its Common Stock for the purpose of entitling them to receive any dividend or other
distribution, or any right to subscribe for or purchase any shares of stock of any class or any other securities, or to receive any other right; 
  
 ii. of any capital reorganization of the Company, any reclassification of the capital stock of the Company, any consolidation or merger of
the Company with or into another corporation, or any conveyance of all or substantially all of the assets of the Company to another corporation; 
  

 -5- 

 iii. of any voluntary dissolution, liquidation or winding-up of the Company; 

 
 iv. of the filing of the Company’s first
registration statement with the U.S. Securities and Exchange Commission (the “SEC”); 
  
 then, and in each such case, the Company will mail or cause to be mailed to the Holder or Holders a notice specifying, as the case may be, (A) the date on which a record is to be taken for the purpose of such
dividend, distribution or right, and stating the amount and character of such dividend, distribution or right, (B) the date on which such reorganization, reclassification, consolidation, merger, conveyance, dissolution, liquidation, winding-up,
redemption or conversion is to take place, and the time, if any is to be fixed, as of which the holders of record of Common Stock shall be entitled to exchange their shares of Common Stock for securities or other property deliverable upon such
reorganization, reclassification, consolidation, merger, conveyance, dissolution, liquidation or winding-up, or (C) the anticipated date on which the Company expects its first registration statement with the SEC to become effective. Such notice
shall be mailed at least fifteen (15) days prior to the date therein specified. 
  
 C. All such notices, advices and communications shall be deemed to have been received (i) in the case of personal delivery, on the date of such delivery and (ii) in the case of mailing, on the third business day
following the date of such mailing if sent to a U.S. address and on the tenth (10th) business day following the date of such mailing if sent to an address outside the U.S. 
  
 8. Amendments. This Warrant and any term hereof may be changed, waived, discharged or terminated only by an instrument in writing
signed by the Company or the Holder of the Warrant against which enforcement of such change, waiver, discharge or termination is sought. 
  
 9. Adjustments. The Exercise Price and the number of Warrant Shares purchasable hereunder are subject to adjustment from time to time as follows: 
  
 A. Reclassification, etc. If the Company, at any time while this
Warrant remains outstanding and unexpired by reclassification of securities or otherwise, shall change the Common Stock into the same or a different number of securities of any other class or classes, the Warrant shall thereafter be similarly
changed, subject to further adjustment as provided in this Section 9. 
  
 B. Split, Subdivision or Combination of Shares. If the Company at any time while this Warrant remains outstanding and unexpired shall split, subdivide or combine the Common Stock into a different number of securities of the same
class, then (i) in the case of a split or subdivision, the Exercise Price shall be proportionately decreased and the securities issuable upon exercise of this Warrant shall be proportionately increased, and (ii) in the case of a combination, the
Exercise Price shall be proportionately increased and the securities issuable upon exercise of this Warrant shall be proportionately decreased. 
  
 C. Adjustments for Dividends in Stock or Other Securities or Property. If while this Warrant remains outstanding and unexpired the holders of the
securities as to which purchase rights under this Warrant exist at the time shall have received, or, on or after the record date fixed for the determination of eligible shareholders, shall have become entitled to receive, 

  

 -6- 

 
without payment therefor, other or additional stock or other securities or property (other than cash) of the Company by way of dividend, then and in each
case, this Warrant shall represent the right to acquire, in addition to the number of shares of the security receivable upon exercise of this Warrant, and without payment of any additional consideration therefor, the amount of such other or
additional stock or other securities or property (other than cash) of the Company that such holder would hold on the date of such exercise had it been the holder of record of the security receivable upon exercise of this Warrant on the date hereof
and had thereafter, during the period from the date hereof to and including the date of such exercise, retained such shares and/or all other additional stock available by it as aforesaid during such period, giving effect to all adjustments called
for during such period by the provisions of this Section 9. 
  
 D.
Certificate as to Adjustments. Upon the occurrence of each adjustment or readjustment pursuant to this Section 9, the Company at its expense shall promptly compute such adjustment or readjustment in accordance with the terms hereof and
furnish to each Holder of this Warrant a certificate setting forth such adjustment or readjustment and showing in detail the facts upon which such adjustment or readjustment is based. The Company shall, upon the written request, at any time, of any
such Holder, furnish or cause to be furnished to such Holder a like certificate setting forth: (i) such adjustments and readjustments; (ii) the Exercise Price at the time in effect; and (iii) the number of shares and the amount, if any, of other
property that at the time would be received upon the exercise of the Warrant. 
  
 E. No Impairment. The Company will not, by any voluntary action, avoid or seek to avoid the observance or performance of any of the terms to be observed or performed hereunder by the Company, but will at all
times in good faith assist in the carrying out of all the provisions of this Section 9 and in the taking of all such action as may be necessary or appropriate in order to protect the rights of the Holders of this Warrant against impairment.

  
 10. Miscellaneous. 
  
 A. This Warrant shall be governed by the laws of the State of California as
applied to agreements entered into in the State of California by and among residents of the State of California, without regard to the principles of conflict of laws thereof. 
  
 B. In the event of a dispute with regard to the interpretation of this Warrant, the prevailing party may collect the cost of
attorney’s fees, litigation expenses or such other expenses as may be incurred in the enforcement of the prevailing party’s rights hereunder. 
  
 C. The holder hereof agrees to be bound by such market standoff provisions (i.e., restrictions on stock resale provisions following the Company’s
sale of securities in the public market) as contained in the Company’s Investors Rights Agreement dated May 30, 2002. 
  
 D. This Warrant shall be exercisable as provided for herein, except that in the event that the Warrant Expiration Date shall fall on a Saturday, Sunday or
United States federally recognized holiday, the Warrant Expiration Date shall be extended to 5:00 p.m. Pacific time on the business day following such Saturday, Sunday or recognized holiday. 
  
 E. This Warrant and any document or agreements executed by the parties
pursuant to this Warrant constitute the full and complete understanding of the parties hereto with respect to 

  

 -7- 

 
the subject matter hereof and supersede all previous agreements or understandings, written or oral, between the parties with respect thereto. 
  
 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 
  

 -8- 

 IN WITNESS WHEREOF, SUNPOWER CORPORATION has caused this Warrant to be executed by its officer thereunto
duly authorized. 
  
 Dated:
            , 2003 
  

			
	COMPANY:
	
	SUNPOWER CORPORATION
		
	By:	 	 
	Title: 	 	 

  

 -9- 

 NOTICE OF EXERCISE 
  
 To: SUNPOWER CORPORATION 
  
 The undersigned hereby elects to purchase                     
shares of Common Stock of SUNPOWER CORPORATION pursuant to the terms of the attached Warrant, and tenders herewith payment of the purchase price for such shares in full. 
  
 In exercising this Warrant, the undersigned hereby confirms and acknowledges that the shares of Common Stock to be issued upon exercise
hereof are being acquired solely for the account of the undersigned and not as a nominee for any other party, or for investment, and that the undersigned will not offer, sell or otherwise dispose of any such shares of Common Stock except under
circumstances that will not result in a violation of the Securities Act of 1933, as amended, or any applicable state securities laws. 
  
 Please issue a certificate or certificates representing said shares of Common Stock in the name of the undersigned or in such other name as is specified below:

  

					
	 	 	 	 	 
	 	 	(Name)	 	 
			
	 	 	 	 	 
	 	 	(Name)	 	 

  

					
			
	  	 	 	 	  
	(Date)	 	 	 	(Signature)

  

 -10- 

 ASSIGNMENT FORM 
  

FOR VALUE RECEIVED, the undersigned registered owner of this Warrant hereby sells, assigns and transfers unto the Assignee named below all of the
rights of the undersigned under the within Warrant. 
  

					
	Name of Assignee	 	 	 	Address

  
 and does hereby
irrevocably constitute and appoint                      to make such transfer on the books of SUNPOWER CORPORATION, maintained for the
purpose, with full power of substitution in the premises. 
  
 The
undersigned also represents that, by assignment hereof, the Assignee acknowledges that this Warrant and the shares of stock to be issued upon exercise hereof are being acquired for investment and that the Assignee will not offer, sell or otherwise
dispose of this Warrant or any shares of stock to be issued upon exercise hereof except under circumstances which will not result in a violation of the Securities Act of 1933, as amended, or any applicable state securities laws. Further, the
Assignee has acknowledged that upon exercise of this Warrant, the Assignee shall, if requested by the Company, confirm in writing, in a form satisfactory to the Company, that the shares of stock so purchased are being acquired for investment and not
with a view toward distribution or resale. 
  
 Dated:
                     
  
 _____________________________________ 
  

 -11-Prepared by R.R. Donnelley Financial -- Supply Agreement, dated April 14, 2005

 Exhibit 10.23 
  
 CONFIDENTIAL 
  
 [CONFIDENTIAL TREATMENT REQUESTED. CONFIDENTIAL PORTIONS OF THIS DOCUMENT HAVE BEEN REDACTED AND HAVE BEEN SEPARATELY FILED WITH THE COMMISSION]

  
 SUPPLY AGREEMENT 
  
 This Agreement is made as of April 14th, 2005 (the “Effective Date”) between Solon
AG für Solartechnik (hereinafter “Solon”) and SunPower Corporation and its affiliates including SunPower Technology Limited (hereinafter “SunPower” ). 
  
 Recitals 
  
 Whereas, SunPower desires to supply solar cells to Solon for its general use during calendar years 2006 through 2010; 
  
 Whereas, in exchange for SunPower’s supply of the solar sells, Solon
desires to provide SunPower with customer advances in the aggregate amount of €*** (the “Advances”), which SunPower will use to fund facilities and equipment to manufacture the solar cells; and 
  
 Whereas, SunPower is willing to supply the solar cells to Solon and Solon is
willing to provide the Advances to SunPower upon the terms and conditions provided herein. 
  
 NOW, THEREFORE, in furtherance of the foregoing Recitals and in consideration of the mutual covenants and obligations set forth in this Agreement, the Parties hereby agree as follows: 
  
 1 - Definitions 
  
 The following terms used in this Agreement shall have the meanings set forth
below: 
  
 1.1 “Agreement” shall mean this Supply Agreement and all
appendices annexed to this Agreement as the same may be amended from time to time in accordance with the provisions hereof. 
  
 1.2 “Competitor” shall mean any manufacturer of crystal or silicon solar cells with annual revenue of US$*** million or more in either of the two (2) previous
calendar years. 
  
 1.3 “Equipment” shall mean the solar cell
manufacturing equipment listed on Appendix 1, which will be purchased by SunPower using funds from the Advances and installed in SunPower’s manufacturing facility in The Philippines. 
  
 1.4 “Facilities” shall mean the facilities required for the installation and operation of the Equipment. 
  
 1.5 “Minimum Monthly Quantity of Product” shall mean *** MWp per month. 

 
 1.6 “Product” shall mean the A-300 solar cells manufactured by SunPower and sold
to Solon pursuant to this Agreement. 
  
 1.7 “Term” shall mean the
period during which this Agreement is in effect, as more specifically set forth in Section 6 of this Agreement. 
  

 Page 1 of 9 
  
 *** CONFIDENTIAL MATERIAL REDACTED AND SEPARATELY FILED WITH THE COMMISSION 

 2 - Ordering 
  
 2.1 On the first working day of each calendar month, Solon shall issue a purchase order (“Order”) to SunPower covering the next
six (6) months of requirements for Product in which the first three (3) months are binding and the following three (3) months may be modified by no more than twenty-five percent (25%) (“rolling forecast”). SunPower shall acknowledge each
Order and confirm the scheduled delivery date within three (3) business days from the date of receipt of the Order. Notwithstanding the foregoing, Solon shall be obligated to Order the Minimum Monthly Quantity of Product each month during the Term
of this Agreement. 
  
 3 - Reserved Capacity and Supply
Obligations 
  
 3.1 For calendar years 2006 through 2010, SunPower agrees
to reserve for the benefit of Solon (the “Reserved Capacity”) a manufacturing capacity of at least ***MWp per year with the understanding that if the installed Equipment is capable of producing more than this quantity, Solon will have
first priority on this additional capacity so long as Solon provides proper notice of its intention to purchase all or part of this additional capacity through the Orders described in Section 2.1. 
  
 3.2 The Reserved Capacity is subject to SunPower receiving the Advances to fund the
Facilities and the Equipment in its manufacturing facility located in The Philippines. 
  
 3.3 The Parties agree that if at the end of the year 2010 Solon has not Ordered or SunPower has not delivered at least ***MWp of Product, then this Agreement will be automatically extended until the earlier of December 31, 2011 or such time
as Solon takes delivery of ***MWp of Product in the aggregate if there is an absence of material breach by SunPower during the Agreement’s duration. 
  
 3.4 Notwithstanding the foregoing, if, at any given time, Solon is not fully utilizing the production capacity of the Equipment, SunPower will be free to use the excess
capacity of the Equipment to serve other customers, subject to maintaining priority on the Reserved Capacity. 
  
 3.5 Subject to Solon Ordering the Minimum Monthly Quantity of Product each month during the term of this Agreement, SunPower shall deliver pursuant to this Agreement at least *** MWp of Product during every three
month Order period (the “Minimum Supply Amount”); provided however, that if SunPower fails to deliver the Minimum Supply Amount, then SunPower may deliver any deficiency during the following three months (in addition to the Minimum Supply
Amount for such following three month period) without breaching this section. 
  
 4 - Price, Rebate and Delivery 
  
 4.1 SunPower agrees to supply the Product to Solon at a price of €***/Wp during calendar year 2006. For each calendar year following 2006 up to and including 2010, SunPower shall reduce the price of the Product by *** and *** percent
(***%) from the previous year’s price. If, however, Solon purchases less than *** MWp of Product in any calendar year (where *** MWp less the procured amount is the “Carry-Over Amount”), then the price reduction for the following year
shall be deferred until Solon purchases the Carry-Over Amount. In calculating whether such *** MWp test has been fulfilled in any year, any purchases in that year to cover a prior year’s Carry-Over Amount shall not be counted. 
  

 Page 2 of 9 
  
 *** CONFIDENTIAL MATERIAL REDACTED AND SEPARATELY FILED WITH THE COMMISSION 

 4.2 The Parties agree that, starting in 20***, if silicon prices increase or decrease beyond a band of plus or minus ***
percent (+/-***%), there will be a sharing of such increase or decrease beyond that band. For purposes of determining this “adjustment”, the Parties have assumed that the price (the “Assumed Price”) of silicon per kilogram will
be as follows: 
  

	 	•	 	20***: €*** 

	 	•	 	20***: €*** 

	 	•	 	20***: €*** 

  
 If, during any calendar quarter in the years shown above, the actual price of silicon is greater than *** percent (***%) of the Assumed Price for such year or less than *** percent (***%) of such Assumed Price, then
the amount of adjustment will be applied to the price for the Product or shared by some other mechanism to be determined by the Parties so that the Parties share equally the difference beyond such +/-***% variance. 
  
 4.3 In consideration of the Advances provided by Solon to SunPower, SunPower will provide
Solon a rebate equal to €***/Wp (the “Rebate”). By the fifteenth day of each calendar month, SunPower will provide Solon with a check in the amount of the total Rebates for deliveries of Product that Solon received in the prior month.
In no event shall the total of all Rebates under this Agreement exceed the amounts received by SunPower from the Advances. 
  
 4.4 The prices for the Products do not include any excise, sales, use, import, export or other taxes, which taxes will be invoiced to and paid by Solon, provided that
Solon is legally or contractually obliged to pay such taxes. SunPower and Solon will work together to eliminate the possibility of taxes, but if there are any assessed, SunPower shall promptly remit to Solon in full any such taxes paid by Solon
which are refunded to SunPower in whole or in part. In any event SunPower understands and agrees that the Products will be purchased for resale. Solon shall be responsible for all transportation charges, duties or charges for shipping and handling;
thus, the price for the Products shall not include any such charges. 
  
 4.5
SunPower shall not be responsible for loading the Products on any vehicle provided by Solon or for clearing the Products for export, unless otherwise agreed. Solon shall bear all costs and risks involved in loading and transporting the Products from
SunPower’s premises to Solon’s desired destination. Title to the Products shall transfer ex works SunPower’s factory. 
  
 4.6 SunPower shall invoice Solon at or after the time of each shipment of Products to Solon. Taxes, customs and duties, if any, will be identified as separate items on
SunPower invoices. All invoices shall be sent to Solon’s location indicated in the Order. Payment terms for all invoiced amounts shall be thirty (30) days from date of shipment. All payments shall be made in Euros. Unless specifically agreed to
in writing by Solon, no advance payments shall be made or C.O.D. shipments accepted. 
  

 Page 3 of 9 
  
 *** CONFIDENTIAL MATERIAL REDACTED AND SEPARATELY FILED WITH THE COMMISSION 

 5 - Advances 
  
 5.1 Provided that SunPower is not in material breach under this Agreement, Solon shall make Advances to SunPower in the aggregate amount of
€*** to be disbursed to SunPower as set forth on Appendix 2. 
  
 5.2
SunPower’s repayment of principal on the Advances shall be amortized over Product deliveries at the rate described in Section 4.3. SunPower may repay all or any portion of the unpaid principal and interest on the Advances at any time without
penalty. 
  
 5.3 Commencing on January 1, 2006, SunPower shall pay simple interest
on any remaining unpaid balance of the Advances at an annual interest rate of *** and *** percent (***%), which interest shall be paid on a per-unit-of-Product-delivered basis (Wp) assuming that SunPower delivers ***MWp of Product per year, and,
provided further, that interest shall only be paid on the first ***MWp of Product deliveries per year. The amount of interest per unit to be paid will be determined at the beginning of each calendar year by calculating the interest on the projected
average unpaid principal amount of Advances for such year and dividing such amount by ***MWp. By the fifteenth day of each calendar month, SunPower will provide Solon with a check in the amount of the interest accrued in the prior month. 

 
 6 - Term and Termination 
  
 6.1 Subject to Section 3.3, the term of this Agreement shall begin on the Effective Date and
provided that the first delivery of the Product under this Agreement shall occur in 2006, and unless previously terminated as herein after set forth, shall remain in force for the years 2006 through 2010 or as extended pursuant to section 3.3.

  
 6.2 Each Party may, at its discretion, upon written notice to the other Party,
and in addition to its rights and remedies provided under this Agreement and at law or in equity, terminate this Agreement in the event of any of the following: 
  

(a) Upon a breach of the other Party of any material provision in this Agreement, and failure of the other Party to cure such material default within sixty (60) days
after written notice thereof; 
  
 (b) Upon the voluntary or involuntary initiation
of bankruptcy or insolvency proceedings against the other Party; provided, that for an involuntary bankruptcy or insolvency proceeding, the party subject to the proceeding shall have sixty (60) working days within which to dissolve the proceeding or
demonstrate to the terminating Party’s satisfaction the lack of grounds for the initiation of such proceeding; or 
  
 (c) In accordance with the provisions of Section 9 below. 
  
 6.3 SunPower may, at its discretion, upon written notice to Solon, and in addition to its rights and remedies provided under this Agreement and at law or in equity,
terminate this Agreement in the event that a *** of *** percent (***%) or more of the *** of *** or if *** percent (***%) or more of the *** of a ***. 
  

 Page 4 of 9 
  
 *** CONFIDENTIAL MATERIAL REDACTED AND SEPARATELY FILED WITH THE COMMISSION 

 6.4 If any of the events in Sections 6.2 and 6.3 occurs with a party, the defaulting party shall give notice of such
event to the other party as soon as practicable, and in any event within three (3) business days of such occurrence. 
  
 6.5 Upon the expiration or termination of this Agreement howsoever arising and subject always to the provisions of Section 6.6 below, the following Sections shall survive
such expiration or termination: Sections 1 (Definitions); Section 4.5 (Delivery); Sections 6.5, 6.6 and 6.7 (Term, Termination and Advance Payment); Section 7 (Limited Power Warranty); Section 8 (Limitation of Liability); and Section 10 (General
Provisions). 
  
 6.6 Upon expiration or termination of this Agreement for any
reason, all outstanding Orders placed prior to such expiration or termination shall be completed by SunPower and for this purpose and to that extent, the provisions of this Agreement shall continue in full force and effect. The foregoing shall not
apply for the Order(s) that is (are) terminated at the same time as the Agreement. 
  
 6.7 If Solon terminates this Agreement pursuant to Section 6.2(a), then SunPower shall repay to Solon any remaining unpaid principal and accrued and unpaid interest on the Advances as if Solon continued to take delivery of ***MWp of Product
per year; provided however that if Solon is in material breach of this Agreement at the time it terminates this Agreement, then SunPower shall not be required to repay any remaining unpaid principal and accrued and unpaid interest on the Advances.
If this Agreement is terminated for any other reason, then SunPower shall not be required to repay any remaining unpaid principal and accrued and unpaid interest on the Advances. Notwithstanding the foregoing, if Solon terminates this Agreement
pursuant to Section 6.2(a) because SunPower intentionally and substantially favors another customer over Solon in terms of allocating Product deliveries (up to the Reserved Capacity), then ***% of all unpaid principal and accrued and unpaid interest
on the Advances shall be immediately due and payable. 
  
 7 -
Limited Power Warranty 
  
 If, on or before December 31,
2009, modules made by Solon using the Product exhibit an average power degradation vs. initial measured power of ***% or greater than the average degradation vs. initial power measured on modules made by Solon using similar module materials and
manufacturing processes and utilized in similar applications (e.g., trackers) but utilizing solar cells from other manufacturers ***, then the Limited Power Warranty set forth in Appendix 4 shall apply to the Product; provided however that
this limited warranty shall apply only to power degradation that is determined by SunPower (in its reasonable discretion) to be due to defects in design. If the condition set forth in the prior sentence is not satisfied, then the Limited Power
Warranty shall not apply to any Product. 
  

 Page 5 of 9 
  
 *** CONFIDENTIAL MATERIAL REDACTED AND SEPARATELY FILED WITH THE COMMISSION 

 8 - Liability 
  
 8.1 IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR INDIRECT, SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES OR FOR EXEMPLARY OR PUNITIVE
DAMAGES, EVEN IF SOLON OR SUNPOWER HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. 
  
 8.2 EXCEPT FOR REPAYMENT OF THE ADVANCE, NEITHER PARTY’S TOTAL LIABILITY TO THE OTHER FOR ANY KIND OF LOSS, DAMAGE OR LIABILITY ARISING UNDER OR IN CONNECTION WITH THIS AGREEMENT, UNDER ANY THEORY OF LIABILITY, SHALL EXCEED IN THE
AGGREGATE THE PURCHASE PRICE OF THE PRODUCTS PURCHASED BY SOLON FROM SUNPOWER FOR THE MOST RECENT TWELVE (12) MONTHS PRIOR TO THE EVENT GIVING RISE TO THE LOSS, DAMAGE OR LIABILITY. 
  
 9 - Force Majeure 
  
 Neither Party shall be liable to the other Party for failure of or delay in performance of any obligation under this Agreement, directly, or indirectly, owing to acts of
God, war, war-like condition, embargoes, riots, strike and other events beyond its reasonable control. If such failure or delay occurs, the affected Party (i.e., the party that is unable to perform) shall notify the other Party of the occurrence
thereof as soon as possible, and the Parties shall discuss the best way to resolve the event of force majeure. If the conditions of force majeure apply for a period of more than two (2) consecutive calendar months, the non-affected Party shall be
entitled to terminate this Agreement by written notice to the other Party. 
  
 10 - General Provisions 
  
 10.1
This Agreement shall be construed under and governed by the laws of the State of New York. 
  
 10.2 Upon notice from one Party to the other of a dispute hereunder, the Parties agree to hold a meeting within thirty (30) days of receipt of such notice with at least one (1) representative from each Party who has
decision-making authority for such company. At this meeting, the Parties will attempt to resolve the dispute in good faith. If, after the meeting, the dispute has not been resolved, only then may a Party resort to litigation. Any proceeding to
enforce or to resolve disputes relating to this Agreement shall be brought before a state or Federal court of competent jurisdiction in the Borough of Manhattan, State of New York. In any such proceeding, neither Party shall assert that such a court
lacks jurisdiction over it or the subject matter of the proceeding. The Parties expressly waive any right to a jury trial and agree that any proceeding hereunder shall be tried by a judge without a jury. 
  
 10.3 This Agreement, in whole or in part, shall not be assigned to a third party without
prior written consent of the other Party; provided however that either Party may assign this Agreement to any of its wholly-owned affiliates as long as such Party unconditionally guarantees the performance of such wholly-owned affiliate. If
this Agreement is assigned effectively to the third party, this Agreement shall bind upon successors and assigns of the parties hereto. 
  

 Page 6 of 9 

 10.4 Except as provided elsewhere in this Agreement, a notice is effective only if the Party giving or making the notice
has complied with this Section 10.4 and if the addressee has received the notice. A notice is deemed to have been received as follows: 
  

	 	(i)	If a notice is delivered in person, or sent by registered or certified mail, or nationally or internationally recognized overnight courier, upon receipt as indicated by the date on
the signed receipt; 

  

	 	(ii)	If a notice is sent by facsimile, upon receipt by the Party giving the notice of an acknowledgment or transmission report generated by the machine from which the facsimile was sent
indicating that the facsimile was sent in its entirety to the addressee’s facsimile number; or 

  

	 	(iii)	If a notice is sent by e-mail, upon receipt by the Party giving the notice of an acknowledgement or transmission report indicating that the e-mail was sent in its entirety to the
addressee’s e-mail address. 

  
 Each Party giving a notice
shall address the notice to the appropriate person at the receiving Party at the address listed below or to a changed address as the Party shall have specified by prior written notice: 
  
 Solon: 
 Solon AG für Solartechnik 
 Ederstr. 16 
 D – 12059 Berlin, Germany 
 Facsimile: +49 / 30 / 818 79 - 110 
 Attention: Mr. Thomas Krupke, CFO 
 E-mail:
t.krupke@solonag.com 
  
 SunPower: 
 SunPower Corporation 
 430 Indio Way

 Sunnyvale, CA 94085 
 Facsimile: (408) 739-7713 
 Attention: Peter Aschenbrenner, 
 E-mail: peter.aschenbrenner@sunpowercorp.com 
 With a copy to: 
 Cypress Semiconductor Corporation 
 3901 North First Street 
 San Jose, California 95134-1599 
 Facsimile: (408) 943-6869 
 Attention: Laura
Norris, Director, Legal Department 
 E-mail: xle@cypress.com 
  
 10.5 The waiver by either Party of the remedy for the other Party’s breach of or its right under this Agreement will not constitute a
waiver of the remedy for any other similar or subsequent breach or right. 
  

 Page 7 of 9 

 10.6 If any provision of this Agreement is or becomes, at any time or for any reason, unenforceable or invalid, no other
provision of this Agreement shall be affected thereby, and the remaining provisions of this Agreement shall continue with the same force and effect as if such unenforceable or invalid provisions had not been inserted in this Agreement. 

 
 10.7 No changes, modifications or alterations to this Agreement shall be valid unless
reduced to writing and duly signed by respective authorized representatives of the Parties. 
  
 10.8 No employment, agency, trust, partnership or joint venture is created by, or shall be founded upon, this Agreement. Each Party further acknowledges that neither it nor any Party acting on its behalf shall have
any right, power or authority, implied or express, to obligate the other Party in any way. 
  
 10.9 Neither Party shall make any announcement or press release regarding this Agreement or any terms thereof without the other Party’s prior written consent. 
  
 10.10 SunPower shall disclose to Solon, upon Solon’s request, any publicly disclosed
information regarding Cypress’ or SunPower’s financial condition; provided however, that SunPower shall be deemed to have disclosed to Solon any information that has been filed electronically with the United States Securities and Exchange
Commission. 
  
 10.11 This Agreement constitutes the entire agreement between the
Parties and supersedes all prior proposal(s) and discussions, relative to the subject matter of this Agreement and neither of the Parties shall be bound by any conditions, definitions, warranties, understandings or representations with respect to
such subject matter other than as expressly provided herein. No oral explanation or oral information by either party hereto shall alter the meaning or interpretation of this Agreement. 
  
 10.12 The headings are inserted for convenience of reference and shall not affect the interpretation and or construction of this Agreement.

  
 10.13 Words expressed in the singular include the plural and vice-versa.

  
 10.14 The parties recognize that there are certain system configuration
requirements for reliable long-term operation of A-300 solar cells. To this end, attached hereto as Appendix 3 (Technical Issues) is a compilation of both parties current understanding of the technical issues. 
  

 Page 8 of 9 

 11 - Secured Amount 
  
 11.1 SunPower acknowledges that Solon is providing the Advances for the sole purpose of providing SunPower money to fund the Facilities and
to purchase the Equipment to be owned by SunPower technology Limited. SunPower represents that it will only use the funds from the Advances for the purpose of funding the Facilities and purchasing the Equipment to create the Reserved Capacity
described in Section 3.1. 
  
 11.2 In order to secure Solon’s investment in
the Equipment through the Advances made to SunPower under this Agreement, SunPower and Solon agree that the Advances shall be secured by the Equipment. In that regard, SunPower and Solon agree that the amount being secured will be an amount equal to
the total amount provided to SunPower from the Advances less the total amount of Rebate remitted by SunPower to Solon (the “Secured Amount”). The Equipment shall serve as collateral to secure repayment of the Secured Amount in the event of
a default in payment by SunPower under this Agreement. The Parties shall enter in a mutually acceptable mortgage agreement by May 30th 2005. 
  

			
	For Solon AG für Solartechnik:	  	For SunPower Corporation:
		
	Name: Alexander Voigt	  	Name: Thomas Werner
		
	Title: Chief Executive Officer	  	Title: Chief Executive Officer
		
	Date: April 14th 2005	  	Date: April 14th 2005
		
	Signature: /s/ Alexander Voigt	  	Signature: /s/ Thomas Werner
		
	Name: Thomas Krupke	  	For SunPower Technology Limited:
		
	Title: Chief Financial Officer	  	Name: Thomas Werner
		
	Date: April 14th 2005	  	Title: _________________________________
		
	Signature: /s/ Thomas Krupke	  	Date: April 14th 2005
		
	 	  	Signature: /s/ Thomas Werner

  

 Page 9 of 9 

 APPENDIX 1 
  

Equipment 
  

	•	 	*** (2) 

  

	 	•	 	Asset #’s – M10200000011, M10700000004 

  

	•	 	*** (3) 

  

	 	•	 	Asset #’s – M10500000012, M11200000004, M11700000004 

  

	•	 	*** (3) 

  

	 	•	 	Asset #’s – M10900000005, M10900000006, M11300000004 

  

	•	 	*** (7) 

  

	 	•	 	Asset #’s – M10300000005, M10600000006, M10800000008, M10800000009, M10800000010, M11400000004, M11400000005 

  

	•	 	*** (4) 

  

	 	•	 	Asset #’s – M10400000008, M11000000005, M11100000011, M11500000004, M11500000005 

  

	•	 	*** (2) 

  

	 	•	 	Asset #’s – M23000000007, M23000000008 

  

	•	 	*** 

  

	 	•	 	Asset #’s – M11600000004 

  

	•	 	*** 

  

	 	•	 	Asset #’s – M11800000006 

  

	•	 	*** 

  

	 	•	 	Asset #’s – M19900000051 to M19900000056 

  

 *** CONFIDENTIAL MATERIAL REDACTED AND SEPARATELY FILED WITH THE COMMISSION 

 APPENDIX 2 
  

Advances 
  

							
	 1st
payment
	  	*** 14th 200***	 	€	 *	**.-
	 2nd payment
	  	*** 2nd 200***	 	€	 *	**.-
	 3rd
payment
	  	*** 15th 200***	 	€	 *	**.-
	 4th
payment
	  	*** 15th 200***	 	€	 *	**.-

  

 *** CONFIDENTIAL MATERIAL REDACTED AND SEPARATELY FILED WITH THE COMMISSION 

 APPENDIX 3 
  

Technical Issues 
  

			
	 Annex 3a:
	 	Common understanding of the “***” issue
		
	 Annex 3b:
	 	Specification of the current product “A-300”
		
	 Annex 3c:
	 	Agreement about product design change
		
	 Annex 3d:
	 	Report about Greg Reichows visit to Berlin (March 31st)

  

 *** CONFIDENTIAL MATERIAL REDACTED AND SEPARATELY FILED WITH THE COMMISSION 

 Annex 3a: Common understanding of the “***” issue 
  
 Here is the today’s understanding in detail: 
  

	 	i.	Solon was able to find the same *** in ***. However, the effect was small and slower that reported by Sunpower. Solon was also able to *** the effect by ***

  

	 	ii.	However, it does not seem that there is any *** above which the ***, but it is more likely that the product “***” is important (and also ***, especially ***). The ***
could also be found already starting after a few days at *** 

  

	 	iii.	All results from *** confirm the *** the the *** is due to a *** where *** is involved 

  
 Still to do: 
  

	 	•	 	As soon as *** in ***, the *** of *** at the *** will be recorder, and will be recorded again after ***. By this test we will try to *** the *** in the ***.

  

	 	•	 	Solon will start a *** with *** (which is the *** level of ***) 

  

	 	•	 	Sunpower will periodically report on the results of their own *** in ***. 

  
 It seems that the *** of the *** is ***, and there is a *** which generally seems to *** any *** in *** (introducing a *** in the *** range between ***). 
  
 On this basis Solon engineers will develop *** for the *** which is supposed to be used at
the *** in 200***. Sunpower technicians will review this solution, and they will confirm that due to their understanding the solution is *** to *** any ***. 
  
 In the case that in *** any *** is observed, chapter *** of the contract is dealing with the ***. 
  

 *** CONFIDENTIAL MATERIAL REDACTED AND SEPARATELY FILED WITH THE COMMISSION 

 Annex 3b: Specification of the current product “A-300” 
  

	 	•	 	datasheet 

  

	 	•	 	drawings and description 

  

	 	•	 	definition of power classes 

  

	 	•	 	Visual and electrical binning criteria 

 [GRAPHICS OMITTED] 
  
 [SunPower Logo] 
 THE CELL PERFORMANCE LEADER 
  
 A-300 
 Single-Crystal Silicon Solar Cell 
  

			
	 Construction:
	 	All-back contact
	 Dimensions:
	 	125 mm x 125 mm - nominal
	 Thickness:
	 	250 μm ± 30 μm

  
 Typical Electrical Performance

  

			
	 Open Circuit Voltage
	 	0.665 V
	 Short Circuit Current:
	 	5.75 A
	 Maximum Power Voltage:
	 	0.560 V
	 Maximum Power Current:
	 	5.35 A
	 Rated Power
	 	3.0 W
	 Efficiency:
	 	20.0% minimum

  
 Temperature Coefficients

  

			
	 Voltage:
	 	-1.9 mV / °C
	 Power:
	 	-0.38 % / °C

  
 Attributes 
  

	 	•	 	High efficiency reduces module assembly and system installation costs 

  

	 	•	 	Uniform front appearance — no contact grid 

  

	 	•	 	Minimal bypass diode requirements 

  

	 	•	 	Back contact design simplifies circuit assembly 

  

	 	•	 	Lower temperature coefficient improves energy delivery 

  
 Packaging 
  

	 	•	 	Cells are packed in boxes of 250 each grouped in shrink-wrapped stacks of 50 with interleaving. 

  

	 	•	 	Ten boxes are packed in a water-resistant “Master Carton” containing 2,500 cells suitable for air transportation 

  

	 	•	 	Master Cartons are permanently labeled with cell tracking information and date of manufacture 

  
 ©2003 SunPower Corporation. All rights reserved. Document Number 70-0006 Rev 01. Specifications may change without notice. 
  

 SunPower Corporation . 430 Indio Way . Sunnyvale, CA 94085 . Phone: (408) 991-0900 . Fax: (408)
739-7713. Email:sales@sunpowercorp.com  
 www.sunpowercorp.com 

 [Graphic Omitted] 

 SunPower A-300 solar cell binning (typical data) date: 01/05/05 
  

																	
	 Bin

	  	Jsc
(mA/cm2

	 	Voc (V)

	 	Impp (A)

	 	Jmpp
(mA/cm2)

	 	Vmpp (V)

	 	Pmpp (W)

	 	FF

	 	Eff (%)

	 E
	  	***	 	***	 	***	 	***	 	***	 	***	 	***	 	***
	 F
	  	***	 	***	 	***	 	***	 	***	 	***	 	***	 	***
	 G
	  	***	 	***	 	***	 	***	 	***	 	***	 	***	 	***
	 H
	  	***	 	***	 	***	 	***	 	***	 	***	 	***	 	***
	 I
	  	***	 	***	 	***	 	***	 	***	 	***	 	***	 	***
	 J
	  	***	 	***	 	***	 	***	 	***	 	***	 	***	 	***
	 K
	  	***	 	***	 	***	 	***	 	***	 	***	 	***	 	***

  

 *** CONFIDENTIAL MATERIAL REDACTED AND SEPARATELY FILED WITH THE COMMISSION 

 SunPower A-300 solar cell binning (typical data) (only bin D) date: 02/18/05 
  

																	
	 Bin

	  	Jsc
(mA/cm2

	 	Voc (V)

	 	Impp (A)

	 	Jmpp
(mA/cm2)

	 	Vmpp (V)

	 	Pmpp (W)

	 	FF

	 	Eff (%)

	 D1
	  	***	 	***	 	***	 	***	 	***	 	***	 	***	 	***
	 D2
	  	***	 	***	 	***	 	***	 	***	 	***	 	***	 	***
	 D3
	  	***	 	***	 	***	 	***	 	***	 	***	 	***	 	***
	 D4
	  	***	 	***	 	***	 	***	 	***	 	***	 	***	 	***
	 D5
	  	***	 	***	 	***	 	***	 	***	 	***	 	***	 	***
	 D6
	  	***	 	***	 	***	 	***	 	***	 	***	 	***	 	***

  

 *** CONFIDENTIAL MATERIAL REDACTED AND SEPARATELY FILED WITH THE COMMISSION 

			
	SUNPOWER CORPORATION	 	 
	Visual and Electrical Binning Criteria for A-300 Cells	 	Page: 1 of 9

  
 [SUNPOWER LOGO]

 SunPower Corporation, 430 Indio Way, Sunnyvale, CA 94085 
  
 TITLE: Visual and Electrical Binning Criteria for A-300 Cells 
  

	1.	PURPOSE AND SCOPE 

  

	 	1.1.	Purpose: This document describes the mechanical, cosmetic and electrical criteria for the purpose of sorting and classifying A-300 cells before shipment. 

 

	 	1.2.	Scope: This document: 

  

	 	1.2.1. 	objectively defines the internal requirements for mechanical, cosmetic and electrical binning and inspection of A-300 cells. 

  

	 	1.2.2. 	applies to all A-300 cells manufactured by SunPower regardless of the manufacturing location. 

  

	 	1.2.3. 	includes definitions necessary to specify the defects that are acceptable and rejectable. 

  

	 	1.2.4. 	does not pertain to ink pattern defects, experimental cells or dummy cells. 

  

	2.	RESPONSIBILITIES 

  

	 	2.1.	R&D / Engineering is responsible for defining the criteria for visual and electrical binning in accordance with the EROS for A300 cells. 

  

	 	2.2.	Each manufacturing site must write their own visual inspection and electrical testing work instructions ensuring that the criteria in this document are followed.

  

	3.	REFERENCED DOCUMENTS 

  

	 	3.1.	02-4001 Document Control and Records 

  

	 	3.2.	75-0003 A-300 External Requirements Objective Specification 

  

	 	3.3.	42-0025 Outgoing Visual Inspection procedure for SPML 

  

	4.	MATERIALS AND EQUIPMENT 

  

	 	4.1.	For Visual Inspection: 

  

	 	4.1.1. 	Bright tungsten halogen lighting (approx. 10,000 Lux) 

  

	 	4.1.2. 	Fluorescent room lighting (approx. 500 Lux) 

  

	 	4.1.3. 	Black background for inspection table(s) 

			
	SUNPOWER CORPORATION	 	 
	Visual and Electrical Binning Criteria for A-300 Cells	 	Page: 2 of 9

  

	 	4.1.4. 	A set of SunPower “Rosetta Cells,” marked with a “Rosetta Cell” label on the back, should be used for comparison and proper distinction between acceptable and
unacceptable cells. Rosetta Cells should be arranged in the sort area such that inspectors may lay production cells next to Rosetta Cells for color comparison and defect recognition 

  

	 	4.1.5. 	A soft cosmetic brush or compressed air gun should be used to brush or blow off loosely adhered particles on the ARC side of the cells. 

  

	 	4.1.6. 	Plastic tweezers 

  

	 	4.1.7. 	Razor blade for removing metal ring 

  

	 	4.1.8. 	Thickness Gauge set to 1.1 mm. 

  

	 	4.2.	For Electrical Testing: 

  

	 	4.2.1. 	A calibrated cell tester should be used for electrical testing. 

  

	5.	SAFETY-N/A 

  

	6.	OPERATING PROCEDURES AND RESPONSIBILITIES 

  

	 	6.1.	Cell Handling 

  

	 	6.1.1. 	Cells should always be handled with plastic tweezers, gloves or finger cots. Operators should make sure that gloves are always clean. Unclean or sweaty gloves leave marks, similar
to those left by a bare finger on the front ARC surface. 

  

	 	6.1.2. 	Cells should only be picked up with plastic tweezers or clean gloved hands. Conventional tweezers leave marks on the front surface. They can easily scratch the ARC side.

  

	 	6.1.3. 	If using a soft brush to remove particles, the cell should not be brushed too hard as it can leave brush marks. Brushes should be replaced or cleaned frequently.

  

	 	6.2.	Cosmetic and Mechanical Binning - The following bins should be used for sorting the cells mechanically and cosmetically. 

  

	 	6.2.1. 	*** - Cells passing the *** criteria outlined in Section 9.1 for the *** bin should be grouped together. These cells will be used for modules with a ***. 

 

	 	6.2.2. 	*** - Cells passing the *** criteria outlined in Section 9.1 for the *** bin should be grouped together. These cells will be used for modules with a ***. 

 

	 	6.2.3. 	*** - Cells failing *** criteria for *** or *** bins should be grouped together. These cells will be used for customers who are insensitive to ***. 

  

	 	6.2.4. 	Scrap - Cells with through-edge chips, cracks, excessive bow, and *** as defined in Section 6.4 should be scrapped. 

  

 *** CONFIDENTIAL MATERIAL REDACTED AND SEPARATELY FILED WITH THE COMMISSION 

			
	SUNPOWER CORPORATION	 	 
	Visual and Electrical Binning Criteria for A-300 Cells	 	Page: 3 of 9

  

	 	6.3.	Electrical Binning- 10 bins should be used for sorting the cells electrically. The bins should include 

  

									
	 Bin Name

	  	Current Density
at 0.555V
(mA/cm2)

	 	Current (A) at
555mV

	 	  	Lower
(3)

	 	Upper
(<)

	 	Lower
(3)

	 	Upper
(<)

	 Eff Reject
	  	***	 	***	 	***	 	***
	 Low Eff
	  	***	 	***	 	***	 	***
	 D
	  	***	 	***	 	***	 	***
	 E
	  	***	 	***	 	***	 	***
	 F
	  	***	 	***	 	***	 	***
	 G
	  	***	 	***	 	***	 	***
	 H
	  	***	 	***	 	***	 	***
	 I
	  	***	 	***	 	***	 	***
	 J
	  	***	 	***	 	***	 	***
	 K
	  	***	 	***	 	***	 	***

  

	 	6.3.1. 	Accuracy of voltage meas. ± ***mV (variation in temperature, contact resistance) 

  

	 	6.3.2. 	Accuracy of current meas. ± ***mA/cm2
(variation in area, simulator intensity and color) 

  

	 	6.3.3. 	Use a “log 50” method to optimize data gathering near max. power. Assure that a load voltage of ***mV is repeatedly available. 

  

	 	6.4.	MECHANICAL INSPECTION 

  

	 	6.4.1.	*** on the edge 

  

	 	6.4.1.1. 	If a *** around the outside edge of the wafer is visible, it should be *** off. *** can come off during module assembly and *** the cell. The *** must be *** off by holding the cell
at the edge with one hand and *** the *** with the other hand. 

  

	 	6.4.1.2. 	The residual portion of the *** should be *** (if necessary) with a ***. The *** can chip the cell so extreme care must be taken while using the ***. 

  

	 	6.4.1.3. 	If *** extends more than *** mm onto the sunny side of the cell, this is considered as excessive *** and should be scrapped. (Figure 1) 

  
 Figure 1. Excessive *** 
  

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 [Graphic Omitted] 
  

	 	6.4.2. 	Chipped and Cracked cells 

  

	 	6.4.2.1. 	Cells should be very carefully inspected for any chips on the edges that extend through the entire cell thickness. These through-edge chips weaken the cell and increase the chances
of cell breakage during stringing and lamination. Chips are best detected by moving a gloved finger around the full perimeter of the cell. 

  

	 	6.4.2.2. 	Cells with through-edge chips should be scrapped. 

  

	 	6.4.2.3. 	Cells should also be inspected for cracks very carefully. Under bright halogen lighting and at oblique angles, cracks become visible. Cells with any form of crack should be
scrapped. 

  

	 	6.43. 	Bowed cells 

  

	 	6.4.3.1. 	Bowed cells do not lie flat on a flat surface (see Figure 2). 

  

	 	6.4.3.2. 	To measure bow, set thickness gauge to *** mm. Bow is acceptable if gauge doesn’t pass through the gap on both sides. (see Figure 3) 

  

	 	6.4.3.3. 	Bow of cells can be sampled instead of ***% measured. Manufacturing may determine the sample size to ensure less than *** % of shipped cells have more than *** mm bow. Measured
cells that have more than *** mm of bow should be scrapped. 

  
 Figure 2 - Bowed cell 
  
 [Graphic
Omitted] 
  
 Figure 3 -Bow Measurement 
  

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 [Graphic Omitted] 
  

	 	6.5.	DEFINITIONS FOR COSMETIC INSPECTION 

  

	 	6.5.1.	Residual *** 

  

	 	6.5.1.1.	 After the *** removal process, there is residual *** to the edge of the cell. There are no *** or *** of ***. 

  

	 	6.5.2.	 Excessive *** 

  

	 	6.5.2.1.	 *** extending over the sunny side surface of the cell. 

  

	 	6.5.3.	Scratches on the ARC Surface 

  

	 	6.5.3.1.	 Deep scratches appear bright white under regular room lighting. 

  

	 	6.5.3.2.	 Light scratches are not white, and are usually very thin. They are invisible or faint under regular room lighting. They become easily visible under bright halogen lighting.

  

	 	6.5.4.	Stains 

  

	 	6.5.4.1.	 Blurred areas, spots or streaks on the wafer caused by water, or chemicals. 

  

	 	6.5.4.2.	 Light stains are invisible or faint under regular room lighting. 

  

	 	6.5.4.3.	 Severe stains appear under regular room lighting. They are usually white in color. 

  

	 	6.5.5.	Streaks and Haziness 

  

	 	6.5.5.1.	 Light haziness or streaks are invisible or faint under regular room lighting. They are visible under halogen lighting. It may spread across the whole front surface of the
cell. 

  

	 	6.5.5.2.	 Severe haziness or streaks are visible under regular room lighting. They appear over a large area of the cell. 

  

	 	6.5.6.	Edge Effects 

  

	 	6.5.6.1.	 There are various effects seen on cell edges. These are best inspected under regular room lighting. 

  

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	 	6.5.6.1.1. 	Whitish edges 

  

	 	6.5.6.1.2.	 Semicircular gray marks at edges 

  

	 	6.5.6.1.3.	 Shiny blue spots at edges 

  

	 	6.5.7. 	Other Effects 

  

	 	6.5.7.1.	 There are various other marks or defects seen on the cells. These are best inspected under regular room lighting. 

  

	 	6.5.7.1.1.	 *** marks along one or two sides of cells. They are roughly 0.5 cm wide and appear dark gray under regular room lighting. 

  

	 	6.5.7.1.2.	 Vacuum cup marks are circular and 1.5 cm in diameter. The circles have ‘spokes’ resembling a wheel. They are difficult to see under regular room lighting.

  

	 	6.5.7.1.3.	 Gray, shiny blue or *** colored spots anywhere on the cell. They generally have an area of 1 - 5 mm2. 

  

	 	6.5.8. 	Tweezer Marks 

  

	 	6.5.8.1.	 Handling cells with conventional tweezers leaves marks on them. In addition, handling cells with special plastic tipped tweezers can leave marks at certain steps of the
process. Tweezer marks appear as a concentrated field of flecks usually in one corner or along one edge of the wafer. Typical length is approximately l cm and width can be up to 5 mm. 

  

	 	6.5.8.1.1.	 Bright white tweezer marks appear as a composite of bright white flecks in the general shape of a tweezer tip. They are easily visible under regular room lighting.

  

	 	6.5.8.1.2.	 Light tweezer marks are not as dense and don’t appear bright white. They are faintly visible under regular room lighting. 

  

	 	6.5.9. 	Flecks 

  

	 	6.5.9.1.	 Small flecks of *** or white-colored metal. These flecks shine when light falls on them, even after lamination. Flecks are not the same as debris which should be removed with
a soft brush or a compressed air gun. 

  

	 	6.5.10.	 Color Variations The thickness and uniformity of ARC (SiN) and oxide (SiO2) coating on the cells leads to color variations. The ideal color is a deep and even dark
blue. The simplest way to distinguish acceptable from unacceptable cell color is to place a production cell next to a “Rosetta Cell” against a black backsheet under halogen lighting. The color of the cell can be distinctly classified into
2 categories. 

  

	 	6.5.10.1.	 Dark Blue - A distinct and uniform dark navy blue color. When light falls on these cells, the color does not fade out into any other color, but instead appears dense
throughout. 

  

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	 	6.5.10.2.	 Off-Color 

  

	 	6.5.10.2.1. 	Light Blue - Light blue, with no detectable grey color. Under a halogen lamp, the cell carries a dark blue color with light blue streaks. 

  

	 	6.5.10.2.2.	 Grey - As light falls on the cell, the color fades out into a very thin layer of light blue color, which fades out into white towards the corners of the cell. In the
absence of halogen light, the cell gives an appearance of a grey color with white corners and edges. 

  

	 	6.5.10.2.3.	 Other - Any other color of cell. 

  

	 	6.5.11.	 Surface Chips 

  

	 	6.5.11.1.	 Areas (usually near the cell edge) where the ARC coating has chipped off. The underlying gray silicon is visible. Surface edge chips to not go through the full thickness of
the cell. 

  

	 	6.6.	COSMETIC INSPECTION CRITERIA 

  

	 	6.6.1.	Every cell must be cosmetically inspected according to the criteria in Section 9.1 Cosmetic Inspection Criteria (except ‘Bow’ which may be sample inspected). Only the
front (ARC) surface needs to be inspected, however, manufacturing may choose to implement a brief cosmetic check of the backside to provide feedback to earlier steps. 

  

	 	6.6.2.	Cosmetically acceptable cells are binned as *** or *** according to the criteria below. These are used for the majority of customers. 

  

	 	6.6.3.	Cells that fail the criteria for *** or ***, but which are not scrap should be placed in bin - ***. 

  

	 	6.6.4.	*** cells should be disposed of or otherwise unmistakably and individually marked as ***. 

  

	 	6.7.	ELECTRICAL TESTING 

  

	 	6.7.1.	Three cosmetic bins (***) should all be sent through electrical test for electrical binning. 

  

	 	6.7.2.	Cells from different cosmetic bins must be sent through electrical test separately to avoid bin mixing. 

  

	 	6.7.3.	Cells need to be electrically tested on a calibrated cell tester after all other processes are done. The tested cells should be placed in their respective bins as defined above in
section 6.3. 

  

	 	6.7.4.	Cells will be identified as being in one of *** bins (***for cosmetic criteria and *** electrical bins). 

  

	 	7.	RECORDS - N/A 

  

	 	8.	POSTING SHEETS AND FORMS: - N/A 

  

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	 	9.	APPENDIX / GENERAL INFORMATION / PROCESS MAP: 

  
 9.1. Cosmetic Inspection Criteria 
  

											
	 Defect

	 	 Method

	 	 ***

	 	 ***

	 	 ***

	 	 ***

	Bow	 	O (sample)	 	***	 	***	 	***	 	***
	Through-edge Chips	 	O	 	 	 	 	 	 	 	X
	Residual ***	 	R	 	No *** on edge	 	Residual ***	 	 	 	 
	Excessive ***	 	R	 	 	 	 	 	 	 	X
	Scratches	 	R	 	Light Scratches	 	Light Scratches	 	Deep, bright white scratches	 	 
	Stains	 	R	 	Light Stains	 	Light Stains and up to *** severe stains less than *** mm in diameter or *** less than *** in diam.	 	More than *** severe stains less than 5mm in diameter or any greater than ***. in diam.	 	 
	Streaks	 	R	 	Light streaks or haziness	 	Light streaks or haziness	 	Severe streaks or haziness	 	 
	Edge Effects	 	R	 	Up to two edge spots (gray or shiny blue) < ***	 	Light white edges.	 	Severe white edges, more than two edge spots or any edge spot > ***.	 	 
	Other Effects,	 	R	 	Faint vacuum marks & *** marks / Up to *** gray or colored spots < ***	 	Faint vacuum marks & *** marks / Up to *** gray or colored spots < ***	 	Bright white vacuum or *** marks. Gray or colored spots > ***.	 	 
	Tweezer mark	 	R	 	none	 	Up to *** that is not bright white	 	bright white	 	 
	Flecks	 	H	 	Up to *** flecks after debris removal	 	Up to *** flecks after debris removal	 	More than *** flecks	 	 
	Dark Blue	 	H	 	Dark Blue Uniform Color	 	Dark Blue Uniform Color	 	 	 	 
	Off-Color	 	H	 	 	 	Light Blue	 	Gray or other color	 	 
	Surface chips	 	H	 	Up to *** surface chip ***	 	Up to *** surface chips, ***	 	*** or more chips, or any	 	 

  

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	 	 	 	 	mm.	 	or. one chip up to ***	 	chip ***	 	 
	 Crack
	 	H	 	 	 	 	 	 	 	X

  
 Note: Rosetta cells identified by
defect and classification (***) must be available at all inspection stations. `Method’ refers to inspection method. R = Room lighting, H = Halogen lighting, O = Other. 
  

 *** CONFIDENTIAL MATERIAL REDACTED AND SEPARATELY FILED WITH THE COMMISSION 

 Annex 3c: product design changes 
  
 The Sunpower A-300 solar cell is a very unique product which requires specially designed production equipment. Solon already spent a lot of
effort and money to develop a prototype of stringer, and in order to be capable to process the amount of cells from 200***, Solon has to invest in more equipment. 
  
 In order to protect Solon’s investment, SunPower agrees to inform Solon in advance of any product change concerning product form, fit
or function, and agrees not to make such changes without written approval of Solon. Solon agrees not to unreasonably withhold such approval and agrees to respond to requests for product changes within ***. 
  
 Sunpower already announced that they want to introduce ***. Solon already agrees to this
product design change, up to using *** of ***. The design of the *** must remain in order to ensure, that the same type of *** can be used. However, Sunpower has to announce the first shipment of the *** at least *** weeks in advance. 
  

 *** CONFIDENTIAL MATERIAL REDACTED AND SEPARATELY FILED WITH THE COMMISSION 

 Annex 3d: Report about *** 
  

 *** CONFIDENTIAL MATERIAL REDACTED AND SEPARATELY FILED WITH THE COMMISSION 

 [SOLON LOGO] 
 *** 
  

 *** CONFIDENTIAL MATERIAL REDACTED AND SEPARATELY FILED WITH THE COMMISSION 

 APPENDIX 4 
  

Limited Power Warranty 
  
 1. SunPower warrants that if, within *** (***)***from date of delivery to Solon: (A) any Product exhibits power degradation of greater than ***% of the
Minimum Peak Power as specified in SunPower’s Product datasheet on the date hereof or (B) modules made by Solon using the Product exhibit an average power degradation vs. initial measured power that is greater than the average degradation vs.
initial power measured on modules made by Solon using similar module materials and manufacturing processes but utilizing solar cells from other manufacturers *** (whichever is greater of (A) or (B)), then SunPower will at its option: (i) replace
such loss in power (above such threshold) by either providing to Solon additional Product to make up such loss in power (above such threshold) or by providing monetary compensation equivalent to the cost of additional Product required to make up
such loss in power (above such threshold); (ii) pay Solon an amount equal to the actual wholesale price of such loss in power (above such threshold) or (iii) repair or replace the defective Product; provided however that this limited warranty
shall apply only to power degradation that is determined by SunPower (in its reasonable discretion) to be due to defects in design. 
  
 2. SunPower warrants that if, within *** (***) *** from date of delivery to Solon: (A) any Product exhibits power degradation of greater than ***% of the
Minimum Peak Power as specified in SunPower’s Product datasheet on the date hereof or (B) modules made by Solon using the Product exhibit an average power degradation vs. initial measured power that is greater than the average degradation vs.
initial power measured on modules made by Solon using similar module materials and manufacturing processes but utilizing solar cells from other manufacturers *** (whichever is greater of (A) or (B)), then SunPower will at its option: (i) replace
such loss in power (above such threshold) by either providing to Solon additional Product to make up such loss in power (above such threshold) or by providing monetary compensation equivalent to the cost of additional Product required to make up
such loss in power (above such threshold); (ii) pay Solon an amount equal to the actual wholesale price of such loss in power (above such threshold) or (iii) repair or replace the defective Product; provided however that this limited warranty
shall apply only to power degradation that is determined by SunPower (in its reasonable discretion) to be due to defects in design. 
  
 3. The limited warranties set forth herein shall be based on the average power output of all Product delivered to Solon prior to the applicable
measurement date. 
  
 4. Warranty claims must in any event be
filed within the applicable Warranty period. 
  
 5. The limited
warranties set forth herein do not apply to any Product which in SunPower’s reasonable discretion has been subjected to: misuse, abuse, neglect or accident; alteration, improper installation or application; improper module design or module
misassembly; non-observance of SunPower’s installation, users and/or maintenance instructions; repair or modifications by someone other than an approved service technician of SunPower; power failure surges, lightning, flood, fire, accidental
breakage or other events outside SunPower’s control. 
  

 *** CONFIDENTIAL MATERIAL REDACTED AND SEPARATELY FILED WITH THE COMMISSION 

 6. The limited warranties set forth herein do not cover any transportation costs for return of the
Product, or for reshipment of any repaired or replaced Product, or cost associated with installation, removal or reinstallation of the Product. 
  
 7. Warranty claims will not apply if the type or serial number of the Product is altered, removed or made illegible. 
  
 8. THE LIMITED WARRANTIES SET FORTH HEREIN ARE EXPRESSLY IN LIEU OF AND
EXCLUDE ALL OTHER EXPRESS OR IMPLIED WARRANTIES, INCLUDING BUT NOT LIMITED TO WARRANTIES OF MERCHANTABILITY AND OF FITNESS FOR PARTICULAR PURPOSE, USE, OR APPLICATION, AND ALL OTHER OBLIGATIONS OR LIABILITIES ON THE PART OF SUNPOWER.

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