Document:

Exhibit
10.2

AMENDED AND
RESTATED

SHARE LENDING AGREEMENT

Dated as of July 25, 2007

Among

SUNPOWER CORPORATION (“Lender”),

and

LEHMAN BROTHERS INTERNATIONAL (EUROPE) LIMITED (“Borrower”),
through

LEHMAN BROTHERS INC., as agent for Borrower (“Borrowing Agent”),

and

LEHMAN BROTHERS INC., in its capacity as Collateral
Agent (as hereinafter defined).This Agreement sets forth the terms and
conditions under which Borrower may borrow from Lender shares of Common Stock.

WHEREAS Lender, Borrower, Borrowing Agent and
Collateral Agent previously entered into that certain Share Lending Agreement,
dated as of February 2, 2007 (the “Original Agreement”), and the parties
thereto now desire to amend and restate such Original Agreement according to
the terms and conditions of this Agreement.

NOW, THEREFORE, the parties thereto and hereto agree
as follows:

Section 1.                                            Certain
Definitions.  The following capitalized terms shall have the following
meanings:

“0.75% Convertible Notes” means the $200,000,000
aggregate principal amount of 0.75% Senior Convertible Debentures due 2027
issued by Lender, or up to $225,000,000 aggregate principal amount to the
extent the option to purchase additional 0.75% Senior Convertible Debentures
due 2027 is exercised in full as set forth in the underwriting agreement
relating to the underwritten offering of the 0.75% Senior Convertible
Debentures due 2027.

“Business Day” means, with respect to any Loan
hereunder, a day on which regular trading occurs in the principal trading
market for the Common Stock.

“Cash” means any coin or currency of the United
States as at the time shall be legal tender for payment of public and private
debts.

“Clearing Organization” means The Depository
Trust Company, or, if agreed to by Borrower and Lender, such other Securities
Intermediary at which Borrower (or Borrowing Agent) and Lender maintain
accounts.

“Closing Price” on any day means, with respect
to the Common Stock (i) if the Common Stock is listed or admitted to
trading on a U.S. securities exchange registered under the Exchange Act or is
included in the OTC Bulletin Board Service (operated by the National
Association of Securities Dealers, Inc.), the last reported sale price,
regular way, in the principal trading session on such day on such market on
which the Common Stock is then listed or is admitted to trading (or, if the day
of determination is not a Business Day, the last preceding Business Day) and
(ii) if the Common Stock is not so listed or admitted to trading or if the
last reported sale price is not obtainable (even if the Common Stock is listed
or admitted to trading on such market), the average of the bid prices for the
Common Stock obtained from as many dealers in the Common Stock (which may
include Borrower or its affiliates), but not exceeding three, as shall furnish
bid prices available to the Lender.

“Collateral” means any Cash or Non-Cash
Collateral.  Each of the parties to this Agreement hereby agree that Cash
and each item within the definition of Non-Cash Collateral shall be treated as
a “financial asset” as defined by Section 8-102(a)(9) of the UCC.

“Collateral Account” means the securities
account of the Collateral Agent maintained on the books of Lehman Brothers
Inc., as securities intermediary, and designated “Lehman Brothers Inc., as
Collateral Agent of SunPower Corporation, as pledgee of Lehman Brothers
International (Europe) Limited, as Borrower of Loaned Shares.”  Any
Collateral deposited in the Collateral Account shall be segregated from all
other assets and property of the Collateral Agent, which such segregation may
be accomplished by appropriate identification on the books and records of
Collateral Agent, as a “securities intermediary” within the meaning of the
UCC.  The Securities Intermediary acknowledges that the Collateral Account
is maintained for the Collateral Agent and undertakes to treat the Collateral
Agent as entitled to exercise the rights that comprise the Collateral credited
to the Collateral Account.  For purposes
of UCC Section 9301(2), the Collateral Account and the Collateral will reside
in New York, New York.

“Collateral Agent” means Lehman Brothers Inc.,
in its capacity as collateral agent for Lender hereunder, or any successor
thereto under Section 20.

“Collateral Percentage” means 100%.

 “Common
Stock” means shares of Class A Common Stock, par value $0.001 per share, of
Lender, or any other security into which the Class A Common Stock shall be
exchanged or converted as the result of any merger, consolidation, other
business combination, reorganization, reclassification, recapitalization or
other corporate action (including, without limitation, a reorganization in
bankruptcy), in each case not involving an Unaffiliated Third Party.

“Convertible Notes” means the $200,000,000
aggregate principal amount of 1.25% Senior Convertible Debentures due 2027
issued by Lender on February 2, 2007.

“Credit Downgrade” occurs when the Guarantor
receives a rating for its long term, unsecured and unsubordinated indebtedness
that is below A- by Standard and Poor’s Ratings Group, or its successor (“S&P”),
or below A3 by Moody’s Investors Service, Inc., or its

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successor (“Moody’s”),
or, if either S&P or Moody’s ceases to rate such debt, an equivalent or
lower rating by a substitute rating agency mutually agreed upon by the Lender
and the Borrower.

“Credit Upgrade” occurs when the Guarantor
receives a rating for its long term, unsecured and unsubordinated indebtedness
that is A- or better by S&P or A3 or better by Moody’s, or, if either
S&P or Moody’s ceases to rate such debt, an equivalent or higher rating by
a substitute rating agency mutually agreed upon by the Lender and the Borrower.

“Cutoff Time” shall mean 10:00 a.m. in the
jurisdiction of the Clearing Organization, or such other time on a Business Day
by which a transfer of Loaned Shares must be made by Borrower or Lender to the
other, as shall be determined in accordance with market practice.

“Early Return
Event” means a merger, consolidation, other business combination,
reorganization, reclassification, recapitalization or similar corporate action,
in each case intended to qualify as a reorganization under section 368 of the
Internal Revenue Code of 1986, as amended, to which the Lender or an affiliate
of the Lender is a party and upon consummation of which it is reasonably
expected that at least 80% of the capital stock of the Lender (or the surviving
corporation if the Lender is acquired) will be held by non-affiliates of the
Lender or the surviving corporation.

“Exchange Act” means the Securities Exchange
Act of 1934, as amended.

“Indenture” means the indenture, dated as of
February 7, 2007, between the Lender and Wells Fargo Bank, National Association,
as trustee, as supplemented by the first supplemental indenture, dated as of
February 7, 2007, between the Lender and Wells Fargo Bank, National
Association, pursuant to which the Convertible Notes were issued (the “First
Supplemental Indenture”), and as further supplemented by the second
supplemental indenture dated as of July 31, 2007, between the Lender and Wells
Fargo Bank, National Association, pursuant to which the 0.75% Convertible Notes
will be issued (the “Second Supplemental Indenture”).

“Loan Availability Period” means the period
beginning with the date of issuance of the Convertible Notes and ending on the
earliest of (i) August 1, 2027, (ii) the date as of which the Lender has
notified the Borrower in writing of its intention to terminate this Agreement
at any time after the latest of (x) the date on which the entire principal
amount of Convertible Notes ceases to be outstanding, (y) the date on which the
entire principal amount of 0.75% Convertible Notes ceases to be outstanding and
(z) the date on which the entire principal amount of any additional convertible
securities of the Lender which the Lender has in writing consented to permit
the Borrower to hedge under this Agreement ceases to be outstanding, in each
case, whether as a result of conversion, redemption, repurchase, cancellation
or otherwise and (iii) the date on which this Agreement shall terminate in
accordance with the terms of this Agreement.

“Loaned Shares” means shares of Common Stock
initially transferred to the Borrower in a Loan hereunder until such Loan or
portion thereof is terminated and a corresponding number of Loaned Shares is
transferred to Lender pursuant to this Agreement; provided that in respect of
any such share of Common Stock initially transferred to the Borrower by Lender
and

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subsequently transferred
by the Borrower to another transferee, “Loaned Share” means an equivalent
number of shares of identical Common Stock.  If, as the result of a stock
dividend, stock split or reverse stock split, the number of outstanding shares
of Common Stock is increased or decreased, then the number of outstanding
Loaned Shares shall be proportionately increased or decreased, as the case may
be.  If any new or different security (or two or more securities) shall be
exchanged for the outstanding shares of Common Stock as the result of any
reorganization, merger, consolidation, reclassification, recapitalization or
other corporate action (including, without limitation, a reorganization in
bankruptcy) not involving an Unaffiliated Third Party, such new or different
security (or such two or more securities collectively) shall, effective upon
such exchange, be deemed to become a Loaned Share in substitution for the
former Loaned Share for which such exchange is made.

“Market Value” on any day means (i) with
respect to Common Stock, the most recent Closing Price of the Common Stock
prior to such day and (ii) with respect to any Collateral that is
(a) Cash, the face amount thereof, (b) a letter of credit, the
undrawn amount thereof and (c) any other security or property, the market
value thereof, as determined by the Collateral Agent, in accordance with market
practice for such securities or property, based on the price for such security
or property as of the most recent close of trading obtained from a generally
recognized source or the closing bid quotation at the most recent close of
trading obtained from such source, plus accrued interest to the extent not
included therein, unless market practice with respect to the valuation of such
securities or property in connection is to the contrary.

“Maximum Number of Shares” means 2,947,132  shares of Common Stock, subject to the following
adjustments:

(a)          If, as the result of a
stock dividend, stock split or reverse stock split, the number of outstanding
shares of Common Stock is increased or decreased, the Maximum Number of Shares
shall, effective as of the payment or delivery date of any such event, be
proportionally increased or decreased, as the case may be.

(b)         If, pursuant to a merger,
consolidation, other business combination, reorganization, reclassification,
recapitalization or other corporate action (including, without limitation, a
reorganization in bankruptcy), in each case involving an Unaffiliated Third
Party, the Common Stock is exchanged for or converted into cash, securities or
other property, the Maximum Number of Shares shall be reduced to zero on the
effective date of such event.

(c)          Upon the termination of
any Loan pursuant to Section 6(a) the Maximum Number of Shares shall
be reduced by the number of Loaned Shares surrendered by Borrower to Lender.

(d)         Notwithstanding the
foregoing, in no event shall the Maximum Number of Shares at any time exceed
the sum of (x) the product of (i) the aggregate principal amount of Convertible
Notes outstanding at such time, divided by $1,000 and (ii) the
Conversion Rate (as defined in the First Supplemental Indenture) of the Convertible
Notes plus (y) the product of (i) the aggregate principal amount of 0.75%
Convertible Notes outstanding at such time, divided by $1,000 and (ii)
the Conversion Rate (as defined in the Second Supplemental Indenture) of the 0.75%

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Convertible Notes plus (z) the product of (i)
the aggregate principal amount outstanding at such time of any additional
convertible securities of the Lender which the Lender has in writing consented
to permit the Borrower to hedge under this Agreement, divided by $1,000
and (ii) the conversion rate (as defined in an indenture or a supplemental indenture
relating to such additional convertible securities) of such additional
convertible securities.

“Non-Cash Collateral” means (i) any
evidence of indebtedness issued, or directly and fully guaranteed or insured,
by the United States of America or any agency or instrumentality thereof;
(ii) any deposits, certificates of deposit or acceptances of any
institution which is a member of the Federal Reserve System having combined capital
and surplus and undivided profits of not less than $500 million at the time of
deposit (and which may include the Collateral Agent or any affiliate of the
Collateral Agent so long as the Collateral Agent is other than Borrower or an
affiliate of Borrower); (iii) any investments of any Person that is fully
and unconditionally guaranteed by a bank referred to in clause (ii);
(iv) any repurchase agreements and reverse repurchase agreements relating
to marketable direct obligations issued or unconditionally guaranteed by the
United States of America or issued by any agency thereof and backed as to
timely payment by the full faith and credit of the United States of America;
(v) commercial paper of any corporation incorporated under the laws of the
United States or any State thereof that is rated “investment grade” A-1 by
Standard & Poor’s Rating Group, a division of McGraw Hill Inc., or any
successor thereto, or P-1 by Moody’s Investors Services, Inc., or any
successor thereto; (vi) any money market funds (including, but not limited
to, money market funds managed by the Collateral Agent or an affiliate of the
Collateral Agent) registered under the Investment Company Act of 1940, as
amended; (vii) any letter of credit issued by a bank referred to in clause
(ii); and (viii) all proceeds of the foregoing; provided that in no event
shall Non-Cash Collateral include “margin stock” as defined by Regulation U of
the Board of Governors of the Federal Reserve System.

“Pledge Date” has the meaning set forth in
Section 3(a).

“Pledge Period” means any period beginning on a
Pledge Date and to the extent such Pledge Date occurred as a result of a Credit
Downgrade ending on the earlier of (i) the Business Day immediately
following the day on which Borrower notifies Lender and Collateral Agent that a
Credit Upgrade has occurred and (ii) the date on which this Agreement
shall terminate in accordance with the terms of this Agreement.

“Securities Intermediary” means a “securities
intermediary” as defined by Section 8-102(a)(14) of the UCC.

“UCC” means the Uniform Commercial Code as in
effect in the State of New York on the date hereof and as it may be amended
from time to time.

“Unaffiliated Third Party” shall mean, with
respect to any transaction by the Lender, any person that the Lender does not “control”
(as that term is defined by Rule 12b-2 under the Exchange Act) immediately
prior to the transaction.

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“Unused Shares” means, as of any given time,
Loaned Shares which are held by the Borrower, or an affiliate of the Borrower,
long in its account and which Loaned Shares are not subject to any hedging
arrangements.

Section 2.                                            Loans
of Shares; Transfers of Loaned Shares.

(a)          On or prior to the
Cutoff Time on February 7, 2007, Borrower provided written notice to Lender (a “Borrowing
Notice”), pursuant to which Borrower initiated a transaction in which Lender
loaned Loaned Shares to Borrower through the issuance by Lender of such Loaned
Shares to Borrower upon the terms, and subject to the conditions, set forth in
this Agreement (such issuance and loan, the “Loan”).  The Loan was
confirmed by a schedule and receipt listing the Loaned Shares provided by
Lender to Borrower (the “Confirmation”).  The Confirmation
constitutes conclusive evidence with respect to the Loan, including the number
of shares of Common Stock that are the subject of the Loan.  Borrower shall not deliver more than one
Borrowing Notice pursuant to this Agreement. 
Such Borrowing Notice was delivered by Borrower on February 2, 2007, and
accordingly Borrower shall not be entitled to deliver any further Borrowing
Notices.

(b)         Notwithstanding anything
to the contrary in this Agreement, Borrower shall not borrow shares of Common
Stock to the extent that Borrower determines that any Loan of such shares of
Common Stock shall cause Borrower to become, directly or indirectly, a “beneficial
owner” (within the meaning of Section 13(d) of the Exchange Act and
the rules and regulations promulgated thereunder, a “Beneficial Owner”)
of more than 9.9% of the shares of Common Stock outstanding at such time. 
Under no circumstances shall Lender be liable to Borrower for any Loan in
contravention of this Section 2(b).

(c)          As a condition to its
entry into the Original Agreement, Borrower delivered to Lender, at the time of
entry into the Original Agreement, a guarantee of Lehman Brothers Holdings,
Inc. (“Guarantor”), attached as Exhibit A hereto.  Borrower hereby agrees and acknowledges that
such guarantee shall continue in full force and effect notwithstanding the
amending and restating of the Original Agreement.

Section 3.                                            Collateral.

(a)          Unless otherwise agreed
by Borrower and Lender, Borrower shall, no later than 10:00 a.m. New York
time on the second Business Day immediately following any day on which a Credit
Downgrade has occurred, transfer to Collateral Agent, for deposit to the
Collateral Account, Collateral with a Market Value at least equal to the
Collateral Percentage of the Market Value of the Loaned Shares as of the close
of business on the Business Day immediately preceding such transfer (any such
date, a “Pledge Date”).

(b)         During any Pledge Period,
any Collateral transferred by Borrower to Collateral Agent shall be security
for Borrower’s obligations in respect of the Loaned Shares and for any other
obligations of Borrower to Lender hereunder.  Borrower on the Pledge Date
pledges with, assigns to, and grants Collateral Agent for the benefit of Lender
a continuing first priority

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security interest in, and a lien upon, the Collateral,
which shall attach upon the transfer of the Loaned Shares by Lender to Borrower
and which shall cease upon the transfer of the Loaned Shares by Borrower to
Lender, a Credit Upgrade or upon the transfer of such Collateral to Borrower in
accordance with the terms of this Agreement.  In addition to the rights
and remedies given to Lender hereunder, Lender shall have all the rights and
remedies of a secured party under the UCC.  To provide for the
effectiveness, validity, perfection and priority of Lender’s rights as a
secured party, Borrower acknowledges that Collateral Agent has obtained control
of any financial assets included in the Collateral (or shall have obtained
control upon posting of such Collateral pursuant to the terms contained herein)
within the meaning of Sections 8-106 and 9-106 of the UCC.  Collateral
Agent acknowledges that it has control of the Collateral (or shall have control
upon posting of such collateral pursuant to the terms contained herein) on
behalf of Lender within the meaning of Section 8-106(d)(1) of the
UCC.  Notwithstanding anything to the contrary herein, Lender may not use
or invest the Collateral and Collateral Agent shall take no instruction from
Lender regarding the use or investment of Collateral.  Promptly upon the
termination of any Pledge Period, the Collateral Agent shall release to the
Borrower all of the Collateral.

(c)          Borrower shall, promptly
at the request of the Collateral Agent, execute all documents and do all things
reasonably required by the Collateral Agent to enable the Collateral Agent to
register, within 21 days of the Pledge Date, the security interest created by
this Agreement in accordance with the provisions of the Companies Act 1985
(United Kingdom).  The Borrower further
agrees that if so requested by the Collateral Agent at any time, to promptly
execute all documents (including any security agreements and transfers) and do
all things (including the delivery, transfer, assignment or payment of all or
part of the Collateral to the Collateral Agent or its nominee(s)) that the
Collateral Agent may reasonably specify for the purpose of (a) exercising the
rights to the Collateral or (b) securing and perfecting its security over or
title to all or any part of the Collateral (including transferring the
Collateral into the name of the Collateral Agent or its nominee(s)).

(d)         Except as otherwise
provided herein, upon the transfer to Lender of Loaned Shares pursuant to
Section 6, Collateral Agent shall release to Borrower Collateral with a
Market Value equal to the Collateral Percentage of the Market Value of the
Loaned Shares so transferred but only to the extent that immediately following
such transfer of Collateral, no Collateral Deficit would exist.  Such
transfer of Collateral shall be made no later than the Cutoff Time on the day
the Loaned Shares are transferred, or if such day is not a day on which a
transfer of such Collateral may be effected under Section 13, or if the
transfer of Loaned Shares by Lender to Borrower occurs after the Cutoff Time on
such day, then in each case the next day on which such a transfer may be
effected.

(e)          If Borrower transfers
Collateral to Collateral Agent, as provided in this Section 3, and Lender
does not transfer (or has not transferred) the Loaned Shares to Borrower,
Borrower shall have the absolute right to the return of the Collateral; and if
Lender transfers Loaned Shares to Borrower and Borrower does not transfer
Collateral to Collateral Agent as provided in this Section 3, Lender shall
have the absolute right to the return of the Loaned Shares.

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(f)            Borrower may, upon
notice to Lender and Collateral Agent, substitute Collateral for Collateral
securing any Loan or Loans; provided that such substituted Collateral shall
have a Market Value such that the aggregate Market Value of such substituted
Collateral, together with all other Collateral, shall equal or exceed the
Collateral Percentage of the Market Value of the Loaned Shares as of the date
of such substitution.

Section 4.                                            Mark to
Market.

(a)          During
any Pledge Period, if at the close of trading on any Business Day during the
Loan Availability Period the aggregate Market Value of all Collateral shall be
less than the Collateral Percentage of the Market Value of all the outstanding
Loaned Shares (a “Collateral Deficit”), Lender may, by notice to
Borrower and Collateral Agent, demand that Borrower transfer to Collateral
Agent, for deposit to the Collateral Account, no later than the following
Business Day, additional Collateral so that the Market Value of such additional
Collateral, when added to the Market Value of all other Collateral, shall equal
or exceed the Collateral Percentage of the Market Value of the Loaned Shares on
such Business Day of determination.

(b)         During any Pledge Period,
if at the close of trading on any Business Day during the Loan Availability
Period the aggregate Market Value of all Collateral shall be greater than the
Collateral Percentage of the Market Value of all the outstanding Loaned Shares
(a “Collateral Excess”), Borrower may, by notice to Lender and
Collateral Agent, demand that Collateral Agent transfer to Borrower such amount
of the Collateral selected by Borrower so that the Market Value of the
Collateral, after deduction of such amounts, shall thereupon be at least equal
to the Collateral Percentage of the Market Value of the Loaned Shares on such Business
Day of determination; provided however that with respect to clauses
(a) and (b), the Collateral Agent will promptly give Lender a statement
setting forth the Market Value of all Collateral upon Lender’s request and
Lender shall have the right to audit the Market Value of all Collateral.

(c)          Notwithstanding the
foregoing, with respect to any outstanding Loans secured by Collateral, the
respective rights of Lender and Borrower under Section 4(a) and
Section 4(b) may be exercised only where a Collateral Excess or
Collateral Deficit exceeds 5% of the Market Value of the Loaned Shares.

Section 5.                                            Loan
Fee.  Borrower paid Lender a single
loan fee for the Loan (the “Loan Fee”) equal to $0.001 per Loaned Share.  The Loan Fee was paid by Borrower on or
before the time of transfer of the Loaned Shares on a delivery-versus-payment
basis through the facilities of the Clearing Organization.

Section 6.                                            Loan
Terminations.

(a)          Borrower may terminate
all or any portion of a Loan on any Business Day by giving written notice
thereof to Lender and transferring the corresponding number of Loaned Shares to
Lender, without any consideration being payable in respect thereof by Lender to
Borrower.

(b)         All outstanding Loans, if
any, on the last day of the Loan Availability Period shall terminate on the
first Business Day following the last day of the Loan Availability Period (the

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“Facility Termination Date”) and all
outstanding Loaned Shares shall be delivered by Borrower to Lender, without any
consideration being payable in respect thereof by Lender to Borrower, no later
than the fifth Business Day following the Facility Termination Date.

(c)          If on any date, the
number of Loaned Shares exceeds the Maximum Number of Shares, the number of
Loaned Shares in excess of the Maximum Number of Shares shall be delivered by
Borrower to Lender, without any consideration being payable in respect thereof
by Lender to Borrower, no later than the third Business Day following such date
(the “Delivery Due Date”). If as a result of complying with this Section 6(c),
Borrower would become a Beneficial Owner of more than 9.9% of the shares of
Common Stock outstanding at such time, then Borrower shall be permitted to
extend the Delivery Due Date for all or a portion of the corresponding delivery
obligation and in no event no longer than such time to allow Borrower to return,
as promptly as reasonably practicable (but subject to applicable law,
regulation or policy), such Loaned Shares, through one transaction or a series
of transactions, without causing Borrower to become, directly or indirectly a
Beneficial Owner of more than 9.9% of the shares of Common Stock outstanding at
such time. If a Loan is terminated upon the occurrence of a Default as set
forth in Section 11, the Loaned Shares shall be delivered by Borrower to
Lender, without any consideration being payable in respect thereof by Lender to
Borrower, no later than the third Business Day following the termination date
of such Loan as provided in Section 11.

(d)         If the Lender notifies
the Borrower in writing at least seven Business Days prior to the anticipated
consummation of an Early Return Event (the “Anticipated Early Return Event
Closing Date”), that it wishes to have the Loans terminated with respect to
all Unused Shares, then no later than the Business Day prior to the Anticipated
Early Return Event Closing Date, Borrower shall transfer to Lender all Unused
Shares as of the fifth Business Day prior to the Anticipated Early Return
Closing Date, without any consideration being payable in respect thereof by
Lender to Borrower.

Section 7.                                            Distributions.

(a)          If at any time when
there are Loaned Shares outstanding under this Agreement, Lender pays a cash
dividend or makes a cash distribution in respect of its outstanding Common
Stock to the then holder or holders of such Loaned Shares, Borrower shall pay
to Lender (whether or not Borrower is a holder of any or all of the outstanding
Loan Shares), within one Business Day after the payment of such dividend or
distribution, an amount in cash equal to the product of (i) the amount per
share of such dividend or distribution and (ii) the number of Loaned
Shares on which the dividend or distribution was paid.

(b)         If at any time when there
are Loaned Shares outstanding under this Agreement, Lender makes a distribution
in respect of its outstanding Common Stock in property or securities, including
any options, warrants, rights or privileges in respect of securities (other
than a distribution of Common Stock, but including any options, warrants,
rights or privileges exercisable for, convertible into or exchangeable for
Common Stock) to the then holder or holders of such Loaned Shares (a “Non-Cash
Distribution”), Borrower shall deliver to Lender (whether or not Borrower
is a holder of any or all of the outstanding Loan Shares) in kind, within

 9
 

one Business Day after the date of such Non-Cash
Distribution, the property or securities distributed in an amount equal to the
product of (i) the amount per share of Common Stock of such Non-Cash
Distribution and (ii) the number of Loaned Shares on which such Non-Cash
Distribution was made.

(c)          Any interest, cash
distribution or cash dividend made on or in respect of any Collateral for any
Loan hereunder, shall, subject to (e) below, be delivered by the
Collateral Agent to Borrower, on the date such interest, cash distribution or
cash dividend is received by the Collateral Agent.

(d)         Any non-cash
distributions or dividend made on or in respect of any Collateral for any Loan
hereunder shall, subject to (e) below, be delivered by the Collateral
Agent to Borrower on the date such non-cash distribution or dividend is
received by the Collateral Agent.

(e)          If the cash or other
property received by the Collateral Agent under the provisions of paragraph
(c) or (d) of this Section 7 qualifies as Collateral, to the
extent that a transfer of such cash or other property to Borrower by the
Collateral Agent would give rise to a Collateral Deficit, the Collateral Agent
shall (only to the extent of any such Collateral Deficit) not make such transfer
of cash or other property in accordance with this Section 7, but shall in
lieu of such transfer immediately credit the amounts that would otherwise have
been transferable under this Section 7 to the Collateral Account.

Section 8.                                            Rights
in Respect of Loaned Shares.  Subject
to the terms of this Agreement, and except as otherwise agreed by Borrower and
Lender, Borrower, insofar as it is the record owner of Loaned Shares, shall
have all of the incidents of ownership in respect of any such Loaned Shares until
such Loaned Shares are required to be delivered to Lender in accordance with
the terms of this Agreement, including the right to transfer the Loaned Shares
to others.  Borrower agrees that it or any of its affiliates that are the
record owner of any Loaned Shares will not vote such Loaned Shares on any
matter submitted to a vote of Lender’s shareholders.

Section 9.                                            Representations
and Warranties.

(a)          Each of Borrower and
Lender represent and warrant to the other that:

(i)                                     it
has full power to execute and deliver this Agreement, to enter into the Loans
contemplated hereby and to perform its obligations hereunder;

(ii)                                  it
has taken all necessary action to authorize such execution, delivery and
performance;

(iii)                               this
Agreement constitutes its legal, valid and binding obligation enforceable
against it in accordance with its terms; and

(iv)                              the
execution, delivery and performance of this Agreement does not and will not
violate, contravene, or constitute a default under, (A) its

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certificate of
incorporation, bylaws or other governing documents, (B) any laws,
rules or regulations of any governmental authority to which it is subject,
(C) any contracts, agreements or instrument to which it is a party or
(D) any judgment, injunction, order or decree by which it is bound.

(b)         Lender represents and
warrants to Borrower, as of the date hereof, and as of the date any Loaned
Shares are transferred to Borrower in respect of any Loan hereunder, that the
Loaned Shares and all other outstanding shares of Common Stock of the Lender
have been duly authorized and, upon the issuance and delivery of the Loaned
Shares to Borrower in accordance with the terms and conditions hereof, and
subject to the contemporaneous or prior receipt of the applicable Loan Fee by
Lender, will be duly authorized, validly issued, fully paid nonassessible
shares of Common Stock; and the stockholders of Lender have no preemptive
rights with respect to the Loaned Shares.

(c)          Lender represents and
warrants to Borrower, as of the date hereof, and as of the date any Loaned
Shares are transferred to Borrower in respect of any Loan hereunder, that the
outstanding shares of Common Stock are listed on NASDAQ Global Market (“NASDAQ”)
and the Loaned Shares have been approved for listing on NASDAQ, subject to
official notice of issuance.

(d)         Borrower represents to
Lender that it shall have at the time of transfer to the Collateral Agent, the
right to grant to Lender, and that Lender shall acquire, a continuing first
priority security interest in the Collateral, if any.

(e)          The representations and
warranties of Borrower and Lender under this Section 9 shall remain in
full force and effect at all times during the term of this Agreement and shall
survive the termination for any reason of this Agreement.

Section 10.                                      Covenants.

(a)          Borrower covenants and
agrees with Lender that it will not transfer or dispose of any Loaned Shares
initially transferred to Borrower by Lender as a Loan hereunder of which it is
the record owner except pursuant to a registration statement that is effective
under the Securities Act; provided that Borrower may transfer any such Loaned
Shares to any of its affiliates without a registration statement so long as
such affiliate transferee does not transfer or dispose of such Loaned Shares to
any non-affiliated transferee except pursuant to a registration statement that
is effective under the Securities Act.

(b)         The parties hereto
acknowledge that Borrower has informed Lender that Borrower is a “financial
institution” within the meaning of Section 101(22) of Title 11 of the
United States Code (the “Bankruptcy Code”).  The parties hereto
further acknowledge and agree that (i) each Loan hereunder is intended to
be a “securities contract,” as such term is defined in
Section 741(7) of the Bankruptcy Code; (ii) each and every
transfer of funds, securities and other property under this Agreement is
intended to be a “settlement payment” or a “margin payment,” as such terms are
used in Sections 362(b)(6) and 546(e) of the Bankruptcy Code; and
(iii) the

 11
 

rights given to Lender hereunder upon a Default by
Borrower are intended to constitute the rights to cause the liquidation of a
securities contract and to set off mutual debts and claims in connection with a
securities contract, as such terms are used in Sections 555 and
362(b)(6) of the Bankruptcy Code.

(c)          Borrower covenants and
agrees with Lender that insofar as it is the record owner of any Loaned Shares,
such Loaned Shares will be used, if at all, solely for the purpose of directly
or indirectly (x) facilitating the sale and the hedging of the Convertible
Notes by the holders thereof, (y) facilitating the sale and the hedging of the 0.75%
Convertible Notes by the holders thereof or (z) with the written consent
of the Lender, facilitating the sale and the hedging of any additional
convertible securities which the Lender may issue from time to time by the
holders thereof.

Section 11.                                      Events
of Default.

(a)          All Loans, and any
further obligation to make Loans under this Agreement, may, at the option of
Lender by a written notice to Borrower (which option shall be deemed exercised,
even if no notice is given, immediately on the occurrence of an event specified
in Section 11(a)(iv) below), be terminated (i) immediately on
the occurrence of any of the events set forth in
Section 11(a)(iv) below and (ii) two Business Days following
such notice on the occurrence of any of the other events set forth below,
(each, a “Default”):

(i)                                     Borrower
fails to deliver Loaned Shares to Lender as required by Section 6;

(ii)                                  Borrower
fails to deliver or pay to Lender when due any cash, securities or other
property as required by Section 7;

(iii)                               Borrower
fails to transfer Collateral when due as required by Section 3 and
Section 4;

(iv)                              the
occurrence of any of the following:

(A)                              the
Borrower is unable or admits its inability to pay its debts as they fall due,
suspends making payments (whether principal or interest) on any of its debts or
announces an intention to do so or, by reason of actual or anticipated
financial difficulties, commences negotiations with one or more of its
creditors with a view to rescheduling any of its indebtedness or is otherwise
deemed unable to pay its debts within the meaning of section 123(a), (b), or
(2) of the Insolvency Act 1986 (United Kingdom); and/or

(B)                                any
corporate action, legal proceedings or other procedure or step is taken in
relation to:

(a)                                  the
suspension of its payments, a moratorium of any of its indebtedness, its
winding-up, its dissolution,  its

 12
 

administration or reorganization (by way of
voluntary arrangement, scheme of arrangement or otherwise) other than a solvent
liquidation or reorganization with another entity with which it forms a group
or an order is made or a resolution passed for its winding up;

(b)                                 a
composition, compromise, assignment or arrangement with any of its creditors;

(c)                                  the
appointment of a liquidator, receiver, administrative receiver administrator,
compulsory manager or other similar officer in respect of it or of its assets;
or

(d)                                 enforcement
of any security interests created over any of its assets;

or any analogous procedure or step is taken in respect
of it in any jurisdiction;

(v)                                 Borrower
fails to provide any indemnity as required by Section 14;

(vi)                              Borrower
notifies Lender of its inability to or intention not to perform Borrower’s
obligations hereunder or otherwise disaffirms, rejects or repudiates any of its
obligations hereunder; or

(vii)                           Any
representation made by Borrower under this Agreement in connection with any
Loan or Loans hereunder shall be incorrect or untrue in any material respect
during the term of any Loan hereunder or Borrower fails to comply in any
material respect with any of its covenants under this Agreement.

Section 12.                                      Lender’s
Remedies.

(a)          Upon the termination of
any Loan by Lender under Section 11, Borrower may, with the prior written
consent of Lender (which consent may be withheld at Lender’s sole discretion;
provided however that, Lender shall not withhold such request if Borrower as a
result would unavoidably become, directly or indirectly, a Beneficial Owner of
more than 9.9% of the shares of Common Stock outstanding at such time), in lieu
of the delivery of Loaned Shares to Lender in accordance with Section 6,
pay to Lender, no later than one Business Day following notice of such Default
to Borrower, an amount in immediately available funds (the “Replacement Cash”)
equal to the product of the Closing Price as of the date of such notice of
Default and the number of Loaned Shares otherwise required to be delivered;
provided that if Lender consents to the delivery of Replacement Cash, Borrower
may direct the Collateral Agent to deliver to Lender any Collateral held by the
Collateral Agent in respect of the Loan so terminated and, to the extent the
Market Value of any such Collateral delivered to Lender is less than the
required amount of Replacement Cash, pay to Lender such difference in
immediately available funds.  Any Collateral in respect of the Loan so
terminated that is not so delivered to Lender pursuant to this clause shall,
upon payment in full of the Replacement Cash to Lender, be immediately
delivered by Collateral Agent to Borrower.

 13
 

(b)         Notwithstanding anything
to the contrary herein, if, upon the termination of any Loan by Lender under
Section 11 and, at the time of such termination, the purchase of Common
Stock in an amount equal to the Loaned Shares to be delivered to Lender in
accordance with Section 6 shall (i) be prohibited by any law,
rules or regulation of any governmental authority to which it is or would be
subject, (ii) violate, or would upon such purchase likely violate, any
order or prohibition of any court, tribunal or other governmental authority or
(iii) require the prior consent of any court, tribunal or governmental
authority prior to any such repurchase (each of (i), (ii) and (iii), a (“Legal
Obstacle”), then, in each case, Borrower shall immediately notify Lender of
the Legal Obstacle and the basis therefor, whereupon Borrower’s obligations
under Section 6 shall be suspended until such time as no Legal
Obstacle with respect to such obligations shall exist (a “Repayment
Suspension”).  Borrower and Borrowing Agent shall use their respective
commercially reasonable best efforts to remove any such Legal Obstacle as
promptly as practicable. Upon notification of a Repayment Suspension and for so
long as the Repayment Suspension shall continue during any Pledge Period,
Lender shall have the right, exercisable in it sole discretion, to direct the
Collateral Agent to, and the Collateral Agent upon receipt of the written
request of Lender (with a copy to Borrower) shall, release to Lender an amount
of Collateral with a Market Value equal to the Market Value of all (or such
fewer number as Lender may specify) of the Loaned Shares that are the subject
of the Repayment Suspension, whereupon the Borrower’s obligation to return the
specified number of Loaned Shares to the Lender shall be automatically
extinguished.

(c)          If Borrower shall fail
to deliver Loaned Shares to Lender pursuant to Section 6 when due or
shall fail to pay the Replacement Cash to Lender when due in accordance with
Section 12(a) or (b) above (to the extent Borrower is permitted
and elects to pay Replacement Cash), then, in either case, in addition to any
other remedies available to Lender under this Agreement or under applicable
law, Lender shall have the right (without further notice to Borrower) to
(i) purchase a like amount of Loaned Shares (“Replacement Shares”)
in the principal market for such securities in a commercially reasonable
manner, (ii) sell any Collateral in the principal market for such
Collateral in a commercially reasonable manner and (iii) apply and set off
the Collateral, if any, and any proceeds thereof (including any amounts drawn
under a letter of credit supporting any Loan) against the payment of the
purchase price for such Replacement Shares and any amounts due to Lender under
this Agreement.  To the extent Lender shall exercise such right, Borrower’s
obligation to return a like amount of Loaned Shares or to pay the Replacement
Cash, as applicable, shall terminate and Borrower shall be liable to Lender for
the purchase price of Replacement Shares (plus all other amounts, if any, due
to Lender hereunder).  In the event that (i) the purchase price of
Replacement Shares (plus all other amounts, if any, due to Lender hereunder)
exceeds (ii) the amount of the Collateral, if any, Borrower shall be
liable to Lender for the amount of such excess.  The purchase price of
Replacement Shares purchased under this Section 12 shall include, and the
proceeds of any sale of Collateral shall be determined after deduction of,
broker’s fees and commissions and all other reasonable costs, fees and expenses
related to such purchase and sale.  In the event Lender exercises its
rights under this Section 12, Lender may elect in its sole discretion, in
lieu of purchasing all or a portion of the Replacement Shares or selling all or
a portion of the Collateral, if any, to be deemed to have made, respectively,
such purchase of Replacement Shares or sale of Collateral for an amount equal
to the Closing Price of the Common Stock on the date Lender

 14
 

elects to exercise this remedy.  Upon the
satisfaction of all Borrower’s obligations hereunder, any remaining Collateral
shall be returned to Borrower.

Section 13.                                      Transfers.

(a)          All transfers of Loaned
Shares to Borrower or to Lender hereunder shall be made by the crediting by a
Clearing Organization of such financial assets to the transferee’s “securities
account” (within the meaning of Section 8-501 of the UCC) maintained with
such Clearing Organization.  All transfers of Collateral to Collateral
Agent by Borrower shall be made by crediting the Collateral Account.  All
transfers of Collateral to Lender by Collateral Agent shall be made in the
manner directed by Lender.  In every transfer of “financial assets”
(within the meaning of Section 8-102 of the UCC) hereunder, the transferor
shall take all steps necessary (a) to effect a delivery to the transferee
under Section 8-301 of the UCC, or to cause the creation of a security
entitlement in favor of the transferee under Section 8-501 of the UCC,
(b) to enable the transferee to obtain “control” (within the meaning of
Section 8-106 of the UCC), and (c) to provide the transferee with
comparable rights under any applicable foreign law or regulation.

(b)         All transfers of cash
hereunder to Borrower or Lender shall be by wire transfer in immediately
available, freely transferable funds.

(c)          A transfer of securities
or cash may be effected under this Section 13 on any day except (i) a
day on which the transferee is closed for business at its address set forth in
Section 17 or (ii) a day on which a Clearing Organization or wire
transfer system is closed, if the facilities of such Clearing Organization or
wire transfer system are required to effect such transfer.

Section 14.                                      Indemnities.

(a)          Lender hereby agrees to
indemnify and hold harmless Borrower and its affiliates and its former, present
and future directors, officers, employees and other agents and representatives
from and against any and all liabilities, judgments, claims, settlements,
losses, damages, fees, liens, taxes, penalties, obligations and expenses
incurred or suffered by any such person or entity directly or indirectly
arising from, by reason of, or in connection with, (i) any breach by
Lender of any of its representations or warranties contained in Section 9
or (ii) any breach by Lender of any of its covenants or agreements in this
Agreement.

(b)         Borrower hereby agrees to
indemnify and hold harmless Lender and its affiliates and its former, present
and future directors, officers, employees and other agents and representatives
from and against any and all liabilities, judgments, claims, settlements,
losses, damages, fees, liens, taxes, penalties, obligations and expenses,
including without limitation any of the foregoing incurred pursuant to
indemnification or other provisions of other agreements, incurred or suffered
by any such person or entity directly or indirectly arising from, by reason of,
or in connection with (i) any breach by Borrower of any of its
representations or warranties contained in Section 9 or (ii) any
breach by Borrower of any of its covenants or agreements in this Agreement.

 15
 

(c)          In case any claim or
litigation which might give rise to any obligation of a party under this
Section 14 (each an “Indemnifying Party”) shall come to the
attention of the party seeking indemnification hereunder (the “Indemnified
Party”), the Indemnified Party shall promptly notify the Indemnifying Party
in writing of the existence and amount thereof; provided that the failure of
the Indemnified Party to give such notice shall not adversely affect the right
of the Indemnified Party to indemnification under this Agreement, except to the
extent the Indemnifying Party is materially prejudiced thereby.  The
Indemnifying Party shall promptly notify the Indemnified Party in writing if it
accepts such claim or litigation as being within its indemnification
obligations under this Section 14.  Such response shall be delivered
no later than 30 days after the initial notification from the Indemnified
Party; provided that, if the Indemnifying Party reasonably cannot respond to
such notice within 30 days, the Indemnifying Party shall respond to the
Indemnified Party as soon thereafter as reasonably possible.

(d)         An Indemnifying Party
shall be entitled to participate in and, if (i) in the judgment of the
Indemnified Party such claim can properly be resolved by money damages alone
and the Indemnifying Party has the financial resources to pay such damages and (ii) the
Indemnifying Party admits that this indemnity fully covers the claim or
litigation, the Indemnifying Party shall be entitled to direct the defense of
any claim at its expense, but such defense shall be conducted by legal counsel
reasonably satisfactory to the Indemnified Party.  An Indemnified Party
shall not make any settlement of any claim or litigation under this
Section 14 without the written consent of the Indemnifying Party.

Section 15.                                      Termination
of Agreement.

(a)          This Agreement may be
terminated (i) at any time by the written agreement of Lender and Borrower,
(ii) by Lender upon the occurrence of a Default or (iii) upon the earlier of
(A) August 1, 2027 and (B) the date on which the Lender has notified the
Borrower in writing of its intention to terminate this Agreement at any time
after the latest of (x) the date on which the entire principal amount of
Convertible Notes ceases to be outstanding, (y) the date on which the entire
principal amount of 0.75% Convertible Notes ceases to be outstanding and (z) the
date on which the entire principal amount of any additional convertible
securities of the Lender which the Lender has in writing consented to permit
the Borrower to hedge under this Agreement ceases to be outstanding, in each
case, whether as a result of conversion, redemption, repurchase, cancellation
or otherwise.

(b)         Unless otherwise agreed
by Borrower and Lender, the provisions of Section 14 shall survive the
termination of this Agreement.

 16
 

Section 16.                                      Registration
Provisions.  If, following the initial
Loan hereunder and registration of the initial Loaned Shares in respect of such
Loan, any subsequent Loan and public sale of the Loaned Shares in respect of
such subsequent Loan, in the reasonable opinion of counsel to Borrower, would
require registration under the Securities Act of 1933, as amended, Lender shall
register such sale in a form and manner reasonably satisfactory to Borrower,
and shall enter into an underwriting agreement substantially in the form of the
Underwriting Agreement dated as of February 2, 2007 relating to the
issuance and sale of such initial Loaned Shares and shall afford Borrower and
its representatives and agents an opportunity to conduct an appropriate “due
diligence” investigation to Borrower’s reasonable satisfaction, all at the
expense of Lender.  In no event shall this Section 16 require Lender
to register shares of Common Stock in excess of the Maximum Number of Shares.

Section 17.                                      Notices.

(a)          All notices and other
communications hereunder shall be in writing and shall be deemed to have been
duly given when received.

(b)         All such notices and
other communications shall be directed to the following address:

(i)                                     If
to Borrower or Borrowing Agent to:

Lehman Brothers Inc.

745 7th Avenue

New York, NY 10019

(ii)                                  If
to Collateral Agent to:

Lehman Brothers Inc., as
Collateral Agent for 

745 7th Avenue

New York, NY 10019

(iii)                               If
to Securities Intermediary to:

Lehman Brothers Inc.

745 7th Avenue

New York, NY 10019

(iv)                              If
to Lender to:

SunPower Corporation

3939 North First Street

San Jose, CA 95134

Facsimile:  (408) 739-7713

Attention:  Chief Financial Officer

With a copy to:

 17
 

Jones Day

1755 Embarcadero Road

Palo Alto, CA 94303 

Facsimile: (650) 739-3900

Attention: Todd Johnson and Steve Gillette

(c)          In the case of any party,
at such other address as may be designated by written notice to the other
parties.

Section 18.                                      Governing
Law; Submission To Jurisdiction; Severability.

(a)          This Agreement shall be
governed by and construed in accordance with the laws of the State of New York,
but excluding any choice of law provisions that would require the application
of the laws of a jurisdiction other than New York.

(b)         EACH PARTY HERETO
IRREVOCABLY AND UNCONDITIONALLY (A) SUBMITS TO THE NON-EXCLUSIVE
JURISDICTION OF ANY UNITED STATES FEDERAL OR NEW YORK STATE COURT SITTING IN
NEW YORK CITY, AND ANY APPELLATE COURT FROM ANY SUCH COURT, SOLELY FOR THE
PURPOSE OF ANY SUIT, ACTION OR PROCEEDING BROUGHT TO ENFORCE ITS OBLIGATIONS
HEREUNDER OR RELATING IN ANY WAY TO THIS AGREEMENT OR ANY LOAN HEREUNDER AND
(B) WAIVES, TO THE FULLEST EXTENT IT MAY EFFECTIVELY DO SO, ANY
DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR
PROCEEDING IN ANY SUCH COURT AND ANY RIGHT OF JURISDICTION ON ACCOUNT OF ITS
PLACE OF RESIDENCE OR DOMICILE.

(c)          EACH PARTY HERETO HEREBY
IRREVOCABLY WAIVES ANY RIGHT THAT IT MAY HAVE TO TRIAL BY JURY IN ANY
ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT
OR THE TRANSACTIONS CONTEMPLATED HEREBY.

(d)         To the extent permitted
by law, the unenforceability or invalidity of any provision or provisions of
this Agreement shall not render any other provision or provisions herein
contained unenforceable or invalid.

Section 19.                                      Counterparts. 
This Agreement may be executed in any number of counterparts, and all such
counterparts taken together shall be deemed to constitute one and the same
agreement.

Section 20.                                      Designation
of Replacement Collateral Agent.  If at any time while this Agreement
is in effect (i) Lehman Brothers Inc. ceases to be a Securities
Intermediary or (ii) Lender shall determine, in its sole discretion, that
any of the relationships by or among the parties hereto are reasonably likely
to prevent Lender from acquiring, or jeopardize the continuation and
enforceability of, Lender’s continuing first priority security interest in the
Collateral as contemplated under Section 3(b), Lender shall be entitled to
designate a bank or trust company reasonably satisfactory to Borrower as a
successor Collateral Agent.  In the event

 18
 

of a designation of a successor Collateral Agent, each
of the parties to this Agreement agrees to take all such actions as are
reasonably necessary to effect the transfer of rights and obligations of Lehman
Brothers Inc. as Collateral Agent hereunder to such successor Collateral Agent,
including the execution and delivery of amendments to this Agreement as shall
be necessary to effect such designation and transfer.

 19
 

IN WITNESS WHEREOF, the parties hereto to have
executed this Amended and Restated Share Lending Agreement as of the date and
year first above written.

	
  SUNPOWER CORPORATION

  as Lender

  	
   

  	
  LEHMAN BROTHERS INTERNATIONAL (EUROPE) LIMITED

  as Borrower

  
	
  By:

  	
  /s/

  	
   

  	
  By:

  	
  /s/

  
	
  Name:

  	
   

  	
  Name:

  
	
  Title:

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  LEHMAN
  BROTHERS INC.

  as Collateral Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/

  
	
   

  	
   

  	
  Name: 

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  LEHMAN BROTHERS INC.

  as Borrowing Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/

  
	
   

  	
   

  	
  Name: 

  
	
   

  	
   

  	
  Title:

  
					

 

 20Exhibit 10.02

BANK OF NEW YORK
SUBSCRIPTION AND TRANSFER AGENT AGREEMENT

This Subscription and
Transfer Agent Agreement (“Agreement”) is entered into this second day of  April, 2007 by and among The Bank of New
York, a New York banking corporation (“Bank”), R. J. O’Brien Fund Management,
Inc., (“RJOFM”) a Delaware corporation, and each Fund listed in Exhibit A
attached hereto.  RJOFM and the Funds,
individually, and R JOFM and the Funds, collectively, shall sometimes
hereinafter be referred to as “Customer”.

WHEREAS, Customer is 1)
the sponsor (Managing Owner) of the Funds or 2) an affiliate of the general
partner of the Funds or 3) an advisor to the Funds listed in Exhibit A; and

WHEREAS, the Customer
desires to retain the services of Bank as subscription agent and transfer agent
for all Shares (as hereinafter defined) of the Funds; and

WHEREAS, Bank desires to
perform the services as described in Exhibit B for each of the Funds upon and
subject to the terms and conditions hereof.

NOW, THEREFORE, IN
CONSIDERATION of the mutual covenants and agreements herein made, the parties
do hereby agree as follows:

Section
1.           Definitions.

“Business Day” means any day other than a Saturday,
Sunday, or other day on which banks in the City of New York are required or
permitted to be closed.

“Call Center Service” means use of a touch-tone
telephone and access to customer service representatives by Investors and
Customer Representatives to obtain account information.

“Certificate” means any notice, instruction or other
instrument in writing, authorized or required by this Agreement to be given to
the Bank by the Customer which is signed by any Officer, as hereinafter
defined, and actually received by the Bank.

“Customer Instructions” means any notices,
instructions or orders given electronically, including facsimile and e-mail;
orally; or in writing to Bank by any person or entity believed by Bank to be a
Customer or Customer Representative by any method agreed upon in writing
between Bank and Customer pursuant to Section 6.2.

“Customer Representative” means Customer or the
individual(s) designated, from time to time, by Customer, pursuant to Section
6.2 herein, to be responsible for carrying out various functions under this
Agreement.

“Fund” means a limited partnership, corporation, Real
Estate Investment Trust (R.E.I.T.), trust, partnership or limited liability
company listed in Exhibit A attached hereto.

“Investor” means any person, corporation, retirement
account or any other form of ownership that has invested money or property in
one or more Fund(s).

“IVR” means a system to be used by Investors to obtain
information using a telephone from an automated attendant regarding such
Investors account with Customer.

“Officer” means, if the Fund is a corporation, the
Fund’s president, chief executive officer, any vice president, the secretary,
the treasurer, the controller, any assistant treasurer and any other official
duly authorized by the Board of Directors of the Customer to execute any
Certificate on behalf of the Customer; and otherwise, means a general partner,
a trustee or other appropriate person.

“Share” means a unit of ownership in a Fund, as
determined by the Fund’s registration statement or prospectus, including but
not limited to, a share, a unit, an ownership interest, a beneficial interest,
and a beneficial assignment.

SECTION
2.           APPOINTMENT OF BANK.

2.1   Appointment.

Each Fund does hereby constitute and appoint Bank as its agent to
provide the services described herein and as more particularly described in
Exhibit B attached hereto (the “Services”) for and on behalf of each of the
Funds upon and subject to the terms and conditions of this Agreement.  Bank hereby accepts appointment as such agent
and agrees to perform the Services in accordance with the terms and conditions
hereinafter set forth. It is intended that Bank be deemed an independent
contractor and that no employment relationship between Customer or the Funds on
the one hand and Bank or Bank’s employees on the other hand be created.

2.2   Documentation.

In connection with such appointment, the Fund shall deliver the
following documents to Bank:

(a)          A copy of
the document evidencing the Fund’s form of organization (the “Charter”) and all
amendments thereto, certified in the case of a corporation or a limited liability
company by the Secretary of State or other appropriate official;

(b)         If the Fund
has By-Laws, a copy of such By-Laws certified by the secretary or an assistant
secretary;

(c)          If the
Fund is a corporation or a limited liability company, a certified copy of a
resolution of the board of directors of the Fund appointing the Bank to perform
the Services and authorizing the execution and delivery of this Agreement;

(d)         A
certificate signed, as appropriate, by a secretary, a general partner, a
trustee or similar person, of the Fund specifying: the number of authorized
Shares, the number of such authorized Shares issued and currently outstanding,
and the names and specimen signatures of all persons duly authorized the Fund
to execute any Certificate on behalf of the Fund, as such Certificate may be
amended from time to time;

(e)          A specimen
Share certificate for each class of Shares in the form approved by the Fund,
together with a Certificate signed by the Secretary of the Fund as to such
approval and covenanting to supply a new such Certificate and specimen whenever
such form shall change; or, alternatively, a Certificate from the Fund signed
by a secretary, a general partner, a trustee or similar person specifying that
Shares are uncertificated;

(f)            An
opinion of counsel for the Fund, in a form satisfactory to Bank, with respect
to the validity of the authorized and outstanding Shares, the obtaining of all
necessary governmental consents, whether such Shares are fully paid and
non-assessable and the status of such Shares under the Securities Act of 1933,
as amended, and of the Fund under the Investment Company Act of 1940, as
amended, and any other applicable law or regulation (i.e., if subject to
registration, that the Shares and/or the Fund, as the case may be, have been
registered and that the Registration Statement has become effective or, if
either the Shares or the Fund is exempt from registration, the specific grounds
therefor);

(g)         A list of
the name, address, social security or taxpayer identification number of each
Shareholder, number of Shares owned, certificate numbers, and whether any “stops”
have been placed; and

 2
 

(h)         An opinion
of counsel for the Fund, in a form satisfactory to Bank, with respect to the
due authorization by the Fund and the validity and effectiveness of the use of
facsimile signatures by Bank in connection with the countersigning and
registering of Share certificates of the Fund.

2.3         Share
Certificates.

The Fund shall furnish Bank with a sufficient supply of blank Share
certificates, if applicable, and from time to time will renew such supply upon
request of Bank.  Such blank Share
certificates shall be properly signed, by facsimile or otherwise, by Officers
of the Fund authorized by law or by the By-Laws (if any) to sign Share certificates,
and, if required, shall bear the corporate seal or a facsimile thereof.

2.4         Information
Files.

In connection with the appointment of Bank, the Fund
shall furnish information to Bank in one or more files in a machine-readable
format acceptable to Bank.

SECTION
3.                                TERM.

This
Agreement will commence on the date hereof and continue until it expires on a
date three (3) years from the date hereof. 
Neither party may terminate the transfer agency relationship prior to
the end of the term with the exception of: violation of the standard of care
set forth in the Agreement by the Bank; a material breach by either party or
its obligations set forth in the Agreement; the sale by the Bank of
substantially all of its stock transfer servicing business or the Bank’s discontinuance
of those services generally; the sale or change of ownership control of the
Customer; the bankruptcy, reorganization or liquidation of either party; or the
occurrence of any event that has a materially adverse effect on the reputation
of the non-terminating party.

SECTION
4.           COMPENSATION, FEES,
EXPENSES AND TAXES

4.1         Compensation Pursuant to
Fee Schedule.

In consideration of the Services to be rendered
pursuant to this Agreement, Customer shall compensate Bank in accordance with
and pursuant to the terms of the Fee Schedule annexed hereto as Exhibit B.

4.2         Taxes

Except as otherwise provided in Exhibit B, Bank shall
have no tax reporting obligations, and Customer shall be solely responsible for
any tax reporting with respect to each Fund and each Investor.

4.3         Payment of Fees and Reimbursements.

a)              Fees shall be paid monthly on or before the first
business day of each calendar month, with the first payment for the calendar
month beginning on the effective date. Customer shall pay reimbursements for
other costs and expenses no later than the tenth day after the close of each
calendar month.

b)             During the first calendar month of the term of this
Agreement, Customer shall pay Bank a pro-rated percentage of the monthly fees
equal to the number of days of such month in which Services are to be performed
divided by the number of days in the month.

c)              In the event this Agreement is terminated
prior to the end of a calendar month, Customer shall be entitled to a return of
Bank’s fee prorated for the portion of the calendar month after

 3
 

the termination date, but
shall pay any costs and expenses incurred by Bank in connection with this
Agreement up to or subsequent to the date of termination.

d)             Bank may receive from time to time payments of
research and fulfillment fees from Investors as set forth in Exhibit B, which
fees are required in order for Investors to receive historical copies of
communications mailed by the Funds as well as the result of research done by
Bank.  Such fees are additional
compensation to Bank, and shall not reduce or affect compensation paid to Bank
pursuant to Sections 4.1 or 4.3.

SECTION 5.           Limitation of Liability;
Indemnification.

5.1         Limitation of Liability
of Bank.

Bank shall not be liable for any Losses (as defined in
Section 5.2) or action taken or omitted or for any loss or injury resulting
from its (or its nominees) actions or its (or its nominees’) performance or
lack of performance of their respective duties hereunder in the absence of  negligence or willful misconduct on their
respective part.  In no event shall Bank
be liable to any Customer, any Investor, or any third party (i) for acting in
accordance with Customer Instructions or instructions from any entity
reasonably believed by Bank to be an agent of Customer; (ii) for special,
consequential or punitive damages; (iii) for the acts or omissions of its
correspondents, designees, agents, subagents; (iv) any Losses (as defined in
Section 5.2) due to forces beyond the reasonable control of Bank, including
without limitation strikes, work stoppages, acts of war or terrorism,
insurrection, revolution, nuclear or natural catastrophes or acts of God, and
interruptions, loss or malfunctions of utilities, communications or computer
(software or hardware) services; or (v) for any violation or alleged violation
of any federal securities law or any “blue sky” or state securities law.  With respect to any Losses (as defined in
Section 5.2) incurred as a result of the acts or the failure to act by any
correspondents, designees, agents, subagents, Bank shall take appropriate
action to recover such Losses from the same; and Bank’s sole responsibility and
liability to Customer and Investors shall be limited to amounts so received
from the same (exclusive of costs and expenses incurred by Bank).

5.2.      Indemnity.

Customer and the related Fund(s) shall be jointly and
severally liable for and shall indemnify Bank (and its nominees) and hold them
harmless from and against any and all claims, losses, liabilities, damages or
expenses (including attorneys’ fees and expenses) (collectively referred to
herein as “Losses”) howsoever arising from or in connection with this Agreement
or the performance of their duties hereunder, the enforcement of this Agreement
and disputes between the parties hereto or otherwise related to Bank’s
performance hereunder, provided, however, that nothing contained herein shall
require that Bank (or its nominees) be indemnified for direct money damages to
the extent caused by their negligence or willful misconduct.  Customer shall be liable to Bank for
satisfaction of any and all obligations and liabilities arising or
incurred.  Nothing contained herein shall
limit or in any way impair the right of Bank to indemnification under any other
provision of this Agreement.

5.3         Legal Action.

No legal action, including one arising out of an
exception or objection under Section 6 hereof, shall be instituted against Bank
after one hundred twenty (120) days from the date of the first statement or
report that reflects the information, error or omission which provides the
basis for such claim.

5.4         Third Party Information.

Bank shall have no responsibility for the accuracy of
any information that has been provided by or obtained from third parties.

 4
 

5.5         Only the Duties Set Forth
Herein.

Except as specifically set forth herein, Bank’s duties
and responsibilities are solely those set forth herein and it shall not be
obligated to perform any services or take any action not provided for herein
unless specifically agreed to by it in writing. 
Nothing contained herein shall cause Bank to be deemed a trustee or
fiduciary for or on behalf of any Customer, any Fund, any Investor, or any
other person.  The Services provided by
Bank hereunder are in addition to the services provided by Bank under any other
agreement between the parties.

5.6         Disclosure of
Information.

Bank is authorized to disclose information concerning
the Funds and Investors to its affiliates and to providers of services as may
be necessary in connection with the administration of or performance of this
Agreement and to its regulators, its internal and external auditors,
accountants and counsel, and to any other person or entity when advised by
counsel that it may be liable for a failure to do so.

5.7.      Bank May Act as Agent.

Bank may act as agent for, provide banking, investment
advisory, investment management and other services to, and generally engage in
any kind of business with, others to the same extent as if Bank were not
providing services hereunder.  Nothing in
this Agreement shall in any way be deemed to restrict the right of Bank to
perform such services for any other person or entity, and the performance of
such services for others will not be deemed to violate or give rise to any duty
or obligation to Customer, and Fund, or any Investor not specifically
undertaken by Bank hereunder.

5.8.      Use of Agents.

Bank may employ agents or attorneys-in-fact
at the expense of Customer, and shall not be liable for any loss or expense
arising out of, or in connection with, the actions or omissions to act of its
agents or attorneys-in-fact, so long as Bank acts in good faith and
without negligence or willful misconduct in connection with the selection of
such agents or attorneys-in-fact.

5.9.      Application for
Instructions.

At any time Bank may apply to an Officer of the Fund
for written instructions with respect to any matter arising in connection with
Bank’s duties and obligations under the Agreement, and Bank shall not be liable
for any action taken or omitted to be taken by Bank in good faith in accordance
with such instructions.  Such application
by Bank for instructions from an Officer of the Fund may, at the option of
Bank, set forth in writing any action proposed to be taken, omitted to be taken
by Bank with respect to its duties or obligations under this Agreement and the
date on and/or after which such action shall be taken, and Bank shall not be
liable for any action taken or omitted to be taken in accordance with a
proposal included in any such application on or after the date specified therein
unless, prior to taking or omitting to take any such action, Bank has received
written instructions in response to such application specifying the action to
be taken or omitted.  Bank may consult
counsel to the Fund or Bank’s own counsel, at the expense of the Fund, and
shall be fully protected with respect to anything done or omitted to be done by
it in good faith in accordance with the advice of opinion of such counsel.

SECTION
6.           NOTICES, INSTRUCTIONS, AND
EXAMINATION OF REPORTS.

6.1         Examination of Reports.

A Customer Representative shall examine promptly each
tax reporting control report, distribution or dividend report, control report
or output report provided by Bank to Customer in fulfillment of a Customer
request for service. Unless Customer Representative files with Bank a written
exception or objection within one hundred and twenty (120) days after the date
of such report that reflects an error or omission, Customer shall be
conclusively deemed to have waived any such exception or objection or claim
based thereon.

 5
 

6.2.      Notices, Instructions and
Other Communications.

Unless otherwise specified herein, all statements and
notices, instructions or other communications may be given either orally or in
writing (including by electronic mail (e-mail), telecopy or other electronic
transmission).  All reports, notices,
instructions and other communications shall be delivered to the address (post
office, telephone, other electronic address) set forth on Exhibit E annexed
hereto, which address may be changed upon thirty (30) days’ prior written
notice to the other party.  Customer
shall furnish to Bank a Certificate in the form of Exhibit C indicating those
Customer Representatives who are authorized to give Bank instructions hereunder
and with specimen signatures of such persons, and until Bank actually receives
such Certificate, Bank shall be authorized to rely upon, and shall incur no
liability for relying upon, instructions reasonably believed to be given by
Customer. Bank is authorized to comply with and rely upon any such notices,
instructions or other communications believed by it to have been sent or given
by a Customer Representative.  Customer
may amend such Certificate or add or delete any person by delivering a
replacement Certificate to Bank, but until such amended Certificate is actually
received Bank shall have no liability for relying on the last received
certificate. Bank’s understanding of any oral notice, instruction or other
communication shall be deemed controlling (whether given or received by Bank),
notwithstanding any discrepancy between such understanding and any subsequent
confirming document or communication.

SECTION 7.           SUBSCRIPTION
FOR SHARES

1.0    The
Customer hereby appoints the Bank to act as its subscription agent for the
purpose of receiving subscriptions for Shares on behalf of the Customer during
the period in which subscriptions for shares may be submitted by or on behalf
of prospective investors (“Investors”) of a Fund (the “Subscription Period”),
as described in the prospectus for a Fund, as may be amended or supplemented
from time to time, and in any future prospectus prepared by a Fund in
connection with future offerings by a Fund. 
The Bank is hereby authorized and directed to receive subscriptions for
Shares on behalf of the Customer until the expiration of the Fund’s
Subscription Period (the “Expiration Date”).

2.0    Any funds
that the Bank receives on behalf of an Investor for the subscription for Shares
during the Subscription Period shall be deposited into an account at the Bank
established pursuant to an Escrow Agreement with the Bank’s Corporate Trust
Division until the total subscriptions reach the minimum amounts established in
a Fund’s prospectus necessary to establish the Fund (whose subscriptions have
been properly completed and executed and for which the correct payment amount
has been received) (the “Escrow Period”). 
After a Fund has instructed the Bank to release the funds held in the
Escrow Account, any funds that the Bank receives on behalf of an Investor for
the subscription for Shares during the Subscription Period shall be deposited
in an account of the Fund at the Bank. 
All funds received in connection with subscriptions which have been
accepted for sufficiency on a particular day shall be wired to the Customer on
the following Business Day.  Funds
received in connection with a subscription that has not been accepted for
sufficiency shall be held in an account at the Bank pending cure.

3.0    As
promptly as practicable after the Bank receives an Investor’s subscription
forms, the Bank shall determine whether such Investor has properly completed
and executed such forms and has submitted the correct payment for the
Shares.  If such form is not properly
completed, is unexecuted or, if such investor did not send the correct payment
amount, then the Bank will send a notice to such Investor or such Investor’s
broker or financial advisor, as the case may be, instructing such Investor to
amend the forms to cure any defect or submit the proper payment amount, as the
case may be.  If the Investor does not
amend the forms or submit the proper payment amount, as the case may be, within
thirty (30) days from the date the Bank sends the notice to such Investor or
such Investor’s broker or financial advisor, as the case may be, the forms and
funds submitted by such Investor shall be returned to such Investor or their
broker or financial advisor.

4.0    Subscriptions
may be accepted by the Bank in the form of check or wire transfer.  Upon receipt of forms for subscriptions of
Shares, the Bank shall scan such forms on its imaging system.  After the Bank has determined that an
Investor’s forms have been properly completed and executed and the correct
payment amount has been received, the Bank shall enter such Investor’s
information on its direct investment system.

 6
 

5.0    The Bank
will advise the Customer on a schedule to which Bank and Customer mutually
agree during the Subscription Period as to (1) the total number of
subscriptions for Shares that the Bank has received (which have been properly
completed and executed and for which the correct payment amount was received),
and (2) the aggregate amount of funds received by the Bank in payment for
such subscriptions.

SECTION 8.                              ISSUANCE
AND TRANSFER OF UNITS

1.0. 
Bank will issue Share certificates upon receipt of a Certificate from an
Officer, but shall not be required to issue Share certificates after it has
received from an appropriate federal or state authority written notification
that the sale of Shares has been suspended or discontinued, and Bank shall be
entitled to rely upon such written notification.  Bank shall not be responsible for the payment
of any original issue or other taxes required to be paid by the Fund in
connection with the issuance of any Shares.

2.0.   Shares will be transferred upon presentation to Bank of Share
certificates in form deemed by Bank properly endorsed for transfer, accompanied
by such documents as Bank deems necessary to evidence the authority of the
person making such transfer, and bearing satisfactory evidence of the payment
of applicable stock transfer taxes.  In
the case of small estates where no administration is contemplated, Bank may,
when furnished with an appropriate surety bond, and without further approval of
the Fund, transfer Shares registered in the name of the decedent where the
current market value of the Shares being transferred does not exceed such
amount as may from time to time be prescribed by the various states.  Bank reserves the right to refuse to transfer
Shares until it is satisfied that the endorsements on Share certificates are
valid and genuine, and for that purpose it may require, unless otherwise
instructed by an Officer of the Fund, a guaranty of signature by an “eligible
guarantor institution” meeting the requirements of Bank, which requirements
include membership or participation in STAMP or such other “signature guarantee
program” as may be determined by Bank in addition to, or in substitution for,
STAMP, all in accordance with the Securities Exchange Act of 1934, as
amended.  Bank also reserves the right to
refuse to transfer Shares until it is satisfied that the requested transfer is
legally authorized, and it shall incur no liability for the refusal in good
faith to make transfers which Bank, in its judgment, deems improper or
unauthorized, or until it is satisfied that there is no basis to any claims
adverse to such transfer.  Bank may, in
effecting transfers of Shares, rely upon those provisions of the Uniform Act
for the Simplification of Fiduciary Security Transfers or the Uniform
Commercial Code, as the same may be amended from time to time, applicable to
the transfer of securities, and the Fund shall indemnify Bank for any act done
or omitted by it in good faith in reliance upon such laws.

3.0.  All
Shares that are subject to restrictions on transfer (e.g., Shares
acquired pursuant to an investment representation, Shares held by controlling
persons, Shares subject to stockholders’ agreement, Shares of a Fund having a
limit on the aggregate number of holders of its Shares, etc.), shall, if
represented by certificates, be stamped with a legend describing the extent and
conditions of the restrictions or referring to the source of such
restrictions.  If such Shares are not
represented by certificates the Fund shall be responsible for informing Bank in
writing of any such restrictions.

4.0.  Bank
shall have no duty or liability for any transfer of Shares described in
preceding Paragraph 7.3 where counsel for the Fund or Bank’s own counsel
advises that such transfer may be made in compliance with all applicable law,
or where Bank receives an investor or purchaser letter, or similar writing (an “Investment
Letter”) which on its face is complete and by its terms authorizes such
transfer.  Nor shall Bank have any duty
or liability to monitor or abide by any limit on the aggregate number of
holders of Shares of any Fund.  Without
limiting the generality of the foregoing, Bank may presume that all factual
statements in any Investment Letter are true and accurate, and that transfers
in accordance with the terms of such Investor Letter are in accordance with all
applicable law.

5.0. 
In the event that a Fund requires approval of transfers by an Officer of the
Fund in order for the transfer to be effective, Customer hereby authorizes and
approves all transfers provided that Bank processes the transfer request in
accordance with this Section and the documentation supplied conforms to the
requirements for transfer specified in Exhibit D.

 7
 

6.0. 
The Fund shall deliver to Bank the following documents on or before the
effective date of any increase, decrease or other change in the total number of
Shares authorized to be issued:

1.0.0..            A certified copy of the amendment to the
Charter giving effect to such increase, decrease or change;

1.0.0..            An opinion of counsel for the Fund, in a
form satisfactory to Bank, with respect to the validity of the Shares, the
obtaining of all necessary governmental consents, whether such Shares are fully
paid and non-assessable and the status of such Shares under the Securities Act
of 1933, as amended, and any other applicable federal law or regulations (i.e.,
if subject to registration, that they have been registered and that the
Registration Statement has become effective or, if exempt, the specific grounds
therefor); and

1.0.0..            In the case of an increase, if the
appointment of Bank was theretofore expressly limited, a certified copy of a
resolution of the Board of Directors or similar body of the Fund increasing the
authority of Bank.

1.0. 
Prior to the issuance of any additional Shares pursuant to stock dividends,
stock splits or otherwise, and prior to any reduction in the number of Shares
outstanding, the Fund shall deliver the following documents to Bank:

1.0.0.0.      If the Fund is a corporation or a limited
liability company, a certified copy of the resolutions adopted by the Board of
Directors or similar body and/or the shareholders of the Fund authorizing such
issuance of additional Shares of the Fund or such reduction, as the case may
be, or a certified General Partner, trustee, or similar person;

2.0.0.0.      A certified copy of the order or consent of each
governmental or regulatory authority required by law as a prerequisite to the
issuance or reduction of such Shares, as the case may be, and an opinion of
counsel for the Fund that no other order or consent is required; and

3.0.0.0.      An opinion of counsel for the Fund, in a form
satisfactory to Bank, with respect to the validity of the Shares, the obtaining
of all necessary governmental consents, whether such Shares are fully paid and
non-assessable and the status of such Shares under the Securities Act of 1933,
as amended, and any other applicable law or regulation (i.e., if subject
to registration, that they have been registered and that the Registration
Statement has become effective, or, if exempt, the specific grounds therefore).

2.0.   In the case of any negative stock split, recapitalization or other
capital adjustment requiring a change in the form of Share certificates, Bank
will issue Share certificates in the new form in exchange for, or upon transfer
of, outstanding Share certificates in the old form, upon receiving:

1.0.0..    A Certificate
authorizing the issuance of Share certificates in the new form;

1.0.0..    A certified copy of any
amendment to the Charter with respect to the change;

1.0.0..            Specimen Share certificates for each class
of Shares in the new form approved by the Board of Directors of the Fund, with
a Certificate signed by the Secretary of the Fund as to such approval;

1.0.0..            A certified copy of the order or consent of
each governmental or regulatory authority required by law as a prerequisite to
the issuance of the Shares in the new form, and an opinion of counsel for the
Fund that the order or consent of no other governmental or regulatory authority
is required; and

1.0.0..            An opinion of counsel for the Fund, in a
form satisfactory to Bank, with respect to the validity of the Shares in the
new form, the obtaining of all necessary governmental consents, whether such
Shares are fully paid and non-assessable and the status of such Shares under
the Securities Act of 1933, as amended, and any other applicable law or
regulation (i.e., if subject to registration, that the Shares have been

 8
 

registered and that the Registration
Statement has become effective or, if exempt, the specific grounds therefore).

1.0.  The
Fund shall furnish Bank with a sufficient supply of blank Share certificates in
the new form, and from time to time will replenish such supply upon the request
of Bank.  Such blank Share certificates shall
be properly signed, by facsimile or otherwise, by Officers of the Fund
authorized by law or by the By-Laws to sign Share certificates and, if
required, shall bear the corporate seal or a facsimile thereof.

SECTION 9. DIVIDENDS
AND DISTRIBUTIONS.

1.1   If the Fund
is a corporation or a limited liability company, it shall furnish to Bank a
copy of a resolution of its Board of Directors, certified by the Secretary or
any Assistant Secretary, either (i) setting forth the date of the declaration
of a dividend or distribution, the date of accrual or payment, as the case may
be, the record date as of which shareholders entitled to payment, or accrual,
as the case may be, shall be determined, the amount per Share of such dividend
or distribution, the payment date on which all previously accrued and unpaid
dividends are to be paid, and the total amount, if any, payable to Bank on such
payment date, or (ii) authorizing the declaration of dividends and
distributions on a periodic basis and authorizing Bank to rely on a Certificate
setting forth the information described in subsection (i) of this sub-paragraph;
If the Fund is not a corporation or a limited liability company, it shall
furnish to Bank a Certificate containing the information described above in
preceding subparagraph.

1.2.  Prior
to the payment date specified in such Certificate or resolution, as the case
may be, the Fund shall, in the case of a cash dividend or distribution, either
(a) pay to Bank an amount of cash sufficient for Bank to make the payment, or
(b) make such deposits, if any, as may be necessary in order for its accounts
from which payment will be to made contain sufficient cash for Bank to make the
payment, specified in such Certificate or resolution, to the shareholders of
record as of such payment date.  Bank
will, upon receipt of any such cash, (i) in the case of shareholders who are
participants in a dividend reinvestment and/or cash purchase plan of the Fund,
reinvest such cash dividends or distributions in accordance with the terms of such
plan, and (ii) in the case of shareholders who are not participants in any such
plan, make payment of such cash dividends or distributions to the shareholders
of record as of the record date by mailing a check, payable to the registered
shareholder, to the address of record or dividend mailing address.  Bank shall not be liable for any improper
payment made in accordance with a Certificate or resolution described in the
preceding paragraph.  If Bank shall not
receive, or the account shall not contain, as the case may be, sufficient cash
prior to the payment date to make payments of any cash dividend or distribution
pursuant to subsections (i) and (ii) above to all shareholders of the Fund as
of the record date, Bank shall, upon notifying the Fund, withhold payment to
all shareholders of the Fund as of the record date until sufficient cash is
provided to Bank.

1.3   It is
understood that Bank shall in no way be responsible for the determination of
the rate or form of dividends or distributions due to the shareholders.

1.4   It is
understood that Bank shall file such appropriate information returns concerning
the payment of dividends and distributions with the proper federal, state and
local authorities as are required by law to be filed by the Fund but shall in
no way be responsible for the collection or withholding of taxes due on such
dividends or distributions due to shareholders, except and only to the extent
required of it by applicable law.

SECTION
10.         USE OF BANK’S NAME.

Customer
shall obtain the prior written consent of Bank to any reference to Bank or to
services to be furnished by Bank in any communication or document; provided
that Bank shall have no responsibility or liability for the content of any such
communication or document.

SECTION
11.         Amendment of Agreement.

Subject
to Section 4, this Agreement may not be modified or amended without the prior written
consent of Customer and Bank.

 9
 

 

SECTION
12.         Assignment.

Except for the assignment
by Bank (i) to a successor corporation upon the merger or consolidation of
Bank, (ii) to an affiliate of Bank, or (iii) upon the sale of all or
substantially all of Bank’s business of providing services similar to the
Services, this Agreement shall not be assigned by either party hereto without
the prior written consent of the other party hereto.

SECTION
13.         Survival.

The provisions of
Sections 4, 5, 14 and 15, shall survive termination of this Agreement.

SECTION
14.         Governing Law; Jurisdiction.

This Agreement shall be
interpreted and construed in accordance with the internal substantive laws (and
not the choice of law rules) of the State of New York.  All actions and proceedings relating to or
arising from, directly or indirectly, this Agreement may be litigated only in
courts located within the State of New York. 
Customer hereby submits to the personal jurisdiction of such courts;
hereby waives any objection that any such action is brought in an inconvenient
forum or an improper venue, and waives personal service of process upon it and
consents that any such service of process may be made by certified or
registered mail, return receipt requested, directed to Customer at its address
last specified for notices hereunder, and service so made shall be deemed
completed five (5) days after the same shall have been so mailed; and hereby
waives the right to a trial by jury in any action or proceeding with Bank.  All actions and proceedings brought by
Customer against Bank relating to or arising from, directly or indirectly, this
Agreement shall be litigated only in courts located within the State of New
York.

SECTION 15.         CONCERNING THE CUSTOMER.

Customer hereby represents and warrants with respect
to itself and each Fund listed in Schedule A from time to time, and each Fund
listed on Schedule A from time to time hereby represents an warrants, but only
with respect to itself, which representation and warranties of Client and of
each Fund shall be deemed repeated on each day on which Bank performs services
hereunder:

a)              It is duly organized
and validly existing under the laws of Delaware and each Fund is duly organized
and validly existing under the laws of its state of organization, and is duly
registered or exempt from registration under the Investment Company Act of
1940, as amended.

b)             This
Agreement has been duly authorized, executed and delivered on its behalf and
constitutes the legal, valid and binding obligation of Customer and each
Fund.  The execution, delivery and
performance of this Agreement by Customer and each Fund does not and will not
violate any applicable law or regulation and do not require the consent of any
governmental or other regulatory body except for such consents and approvals as
have been obtained and are in full force and effect applicable to Customer and
each Fund.

c)              If Customer is
acting on behalf of any Fund(s), Customer is fully authorized and empowered by
each Fund to engage in the transactions contemplated by this Agreement and to
execute this Agreement on behalf of each Fund.

d)             That all data,
including without limitation, data about Investors or any Fund, delivered to
Bank is substantially accurate and complete.

SECTION 16.         CONCERNING THE BANK

16.1  Bank may
establish such additional procedures, rules and regulations governing the
transfer or registration of Shares as it may deem advisable and consistent with
such rules and regulations generally

 10

adopted
by bank transfer agents.

16.2  Bank may
keep such records as it deems advisable but not inconsistent with resolutions
adopted by the Fund.  Bank may deliver to
the Fund from time to time at its discretion, for safekeeping or disposition by
the Fund in accordance with law, such records, papers, Share certificates which
have been cancelled in transfer or exchange and other documents accumulated in
the execution of its duties hereunder as Bank may deem expedient, other than
those which Bank is itself required to maintain pursuant to applicable laws and
regulations, and the Fund shall assume all responsibility for any failure
thereafter to produce any record, paper, cancelled Share certificate or other
document so returned, if and when required. 
The records maintained by Bank pursuant to this paragraph which have not
been previously delivered to the Fund pursuant to the foregoing provisions of
this paragraph shall be considered to be the property of the Fund, shall be
made available upon request for inspection by the Officers, employees and
auditors of the Fund, and shall be delivered to the Fund upon request and in
any event upon the date of termination of the Agreement in the form and manner
kept by Bank on such date of termination or such earlier date as may be
requested by the Fund.

16.3  When mail
is used for delivery of non-negotiable Share certificates, the value of
which does not exceed the limits of Bank’s Blanket Bond, Bank shall send such
non-negotiable Share certificates by first class mail, and such
deliveries will be covered while in transit by Bank’s Blanket Bond.  Non-negotiable Share certificates, the
value of which exceed the limits of Bank’s Blanket Bond, will be sent by
insured registered mail.  Negotiable
Share certificates will be sent by insured registered mail.  Bank shall advise the Fund of any Share
certificates returned as undeliverable after being mailed as herein provided
for.

16.4  Bank may
issue new Share certificates in place of Share certificates represented to have
been lost, stolen or destroyed upon receiving instructions in writing from an
Officer and indemnity satisfactory to Bank. 
Such instructions from the Fund shall be in such form as approved by the
Board of Directors of the Fund in accordance with applicable law or the By-Laws
of the Fund governing such matters.  If
Bank receives written notification from the owner of the lost, stolen or
destroyed Share certificate within a reasonable time after he has notice of it,
Bank shall promptly notify the Fund and shall act pursuant to written
instructions signed by an Officer.  If
the Fund receives such written notification from the owner of the lost, stolen
or destroyed Share certificate within a reasonable time after he has notice of
it, the Fund shall promptly notify Bank and Bank shall act pursuant to written
instructions signed by an Officer.  Bank
shall not be liable for any act done or omitted by it pursuant to the written
instructions described herein.  Bank may
issue new Share certificates in exchange for, and upon surrender of, mutilated
Share certificates.

16.5  Bank will
issue and mail subscription warrants for Shares, Shares representing stock
dividends, exchanges or splits, or act as conversion agent upon receiving
written instructions from an Officer and such other documents as Bank may deem
necessary.

16.6  Bank will
supply shareholder lists to the Fund from time to time upon receiving a request
therefore from an Officer of the Fund.

16.7  In case of
any requests or demands for the inspection of the shareholder records of the
Fund, Bank will notify the Fund and endeavor to secure instructions from an
Officer as to such inspection.  Bank
reserves the right, however, to exhibit the shareholder records to any person
whenever it is advised by its counsel that there is a reasonable likelihood
that Bank will be held liable for the failure to exhibit the shareholder
records to such person.

16.8  At the
request of an Officer, Bank will address and mail such appropriate notices to
shareholders as the Fund may direct.

16.9  Notwithstanding
any provisions of this Agreement to the contrary, Bank shall be under no duty
or obligation to inquire into, and shall not be liable for:

 11
 

a)              The legality of the
issue, sale or transfer of any Shares, the sufficiency of the amount to be received
in connection therewith, or the authority of the Fund to request such issuance,
sale or transfer;

b)             The legality of the
purchase of any Shares, the sufficiency of the amount to be paid in connection
therewith, or the authority of the Fund to request such purchase;

c)              The legality of the
declaration of any dividend by the Fund, or the legality of the issue of any
Shares in payment of any stock dividend; or

d)             The legality of any
recapitalization or readjustment of the Shares.

16.0 Specifically, but not by way
of limitation, the Fund shall indemnify and hold harmless Bank from and against
any and all claims (whether with or without basis in fact or law), costs,
demands, expenses and liabilities, including reasonable attorney’s fees, of any
and every nature which Bank may sustain or incur or which may be asserted
against Bank in connection with the genuineness of a Share certificate, Bank’s
due authorization by the Fund to issue Shares and the form and amount of
authorized Shares.

SECTION
17.         Proprietary Information.

Customer agrees that all
computer programs, software, forms, plans and procedures developed by Bank to
perform the services required under this Agreement as well as the terms and
conditions of this Agreement are trade secrets or other property of Bank.  In addition, Bank reserves the right to
include Customer’s name on a Customer list.

section
18.         Severability.

If any court or tribunal
of competent jurisdiction determines that any provision of this Agreement is
illegal, invalid or unenforceable, the remaining provisions of this Agreement
shall remain in full force and effect.

section
19.         Headings.

The section and paragraph
headings contained herein are for convenience and reference only and are not
intended to define or limit the scope of any provision of this Agreement.

SECTION
20.         COUNTERPARTS

This Agreement may be
signed in multiple counterparts, in which event such counterparts when taken
together shall constitute an entire agreement.

 12
 

IN WITNESS
WHEREOF, each of Customer and Bank has caused this Agreement to be signed by
their duly authorized officers as of the day first above written.

	
  Witness

  	
   

  	
  THE BANK OF NEW YORK

  
	
   

  	
   

  	
  By:

  	
  Kyle C. Kerbawy

  
	
   

  	
   

  	
  Title:

  	
  Managing Director

  
	
   

  	
   

  	
  Date:

  	
   

  
	
  Witness

  	
   

  	
  R. J. O’BRIEN,

  
	
  for
  itself, and for each of the Funds listed on Exhibit A

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
  Date:

  	
   

  

 

 

 13

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