Document:

Master Separation Agreement

  
 Exhibit 10.12

  
 Master Separation Agreement 
  
 between 
  
 Cypress Semiconductor Corporation 
  
 and 
  
 SunPower Corporation 
  
 October 6, 2005 

  
 TABLE OF CONTENTS

  

					
	 	 	 	  	Page

	ARTICLE I SEPARATION	  	1
			
	 1.1
	 	Separation Date	  	1
	 1.2
	 	Closing of Transactions	  	1
		
	ARTICLE II DOCUMENTS AND ITEMS TO BE DELIVERED ON AND AFTER THE SEPARATION DATE	  	2
			
	 2.1
	 	Documents to Be Delivered by Cypress on the Separation Date	  	2
	 2.2
	 	Documents to Be Delivered by SunPower on the Separation Date	  	2
		
	ARTICLE III REPRESENTATIONS, WARRANTIES, COVENANTS AND OTHER MATTERS	  	3
			
	 3.1
	 	Other Agreements	  	3
	 3.2
	 	Payment of Expenses	  	3
	 3.3
	 	Dispute Resolution	  	3
	 3.4
	 	Governmental Approvals	  	4
	 3.5
	 	Authority	  	4
	 3.6
	 	Confidentiality of Information	  	4
		
	ARTICLE IV MISCELLANEOUS	  	6
			
	 4.1
	 	Limitation of Liability	  	6
	 4.2
	 	Entire Agreement	  	6
	 4.3
	 	Governing Law	  	6
	 4.4
	 	Termination	  	6
	 4.5
	 	Notices	  	6
	 4.6
	 	Counterparts	  	7
	 4.7
	 	Binding Effect; Assignment	  	7
	 4.8
	 	Severability	  	7
	 4.9
	 	Failure or Indulgence Not Waiver; Remedies Cumulative	  	7
	 4.10
	 	Amendment	  	8
	 4.11
	 	Interpretation	  	8
	 4.12
	 	Conflicting Agreements	  	8
		
	ARTICLE V DEFINITIONS	  	8
			
	 5.1
	 	Affiliated Company	  	8
	 5.2
	 	Ancillary Agreements	  	8
	 5.3
	 	Confidential Information	  	8
	 5.4
	 	Disclosing Party	  	8
	 5.5
	 	Dispute	  	8
	 5.6
	 	Dispute Resolution Commencement Date	  	8
	 5.7
	 	Governmental Approvals	  	8
	 5.8
	 	Governmental Authority	  	9

					
	 5.9
	  	Information	  	9
	 5.10
	  	Cypress Group	  	9
	 5.11
	  	Person	  	9
	 5.12
	  	Receiving Party	  	9
	 5.13
	  	Residual Information	  	9
	 5.14
	  	Separation	  	9
	 5.15
	  	Separation Date	  	9
	 5.16
	  	SunPower Group	  	9
	 5.17
	  	Subsidiary	  	9

  
 EXHIBITS 

 

			
	 Exhibit A
	 	Indemnification and Insurance Matters Agreement
		
	 Exhibit B
	 	Investor Rights Agreement
		
	 Exhibit C
	 	Employee Matters Agreement
		
	 Exhibit D
	 	Tax Sharing Agreement
		
	 Exhibit E
	 	Master Transition Services Agreement
		
	 Exhibit F
	 	Contract of Lease
		
	 Exhibit G
	 	Wafer Manufacturing Agreement

  
 MASTER SEPARATION
AGREEMENT 
  
 This Master Separation Agreement (this
“Agreement”) is entered into as of October 6, 2005, between Cypress Semiconductor Corporation, a Delaware corporation (“Cypress”), and SunPower Corporation, a Delaware corporation (“SunPower”).
Capitalized terms used herein and not otherwise defined shall have the meanings ascribed to such terms in Article V hereof. 
  
 RECITALS 
  
 1. Cypress currently owns approximately 99% of the issued and outstanding capital stock of SunPower. 
  
 2. Heretofore, Cypress and SunPower have conducted their businesses
separately. 
  
 3. Cypress and SunPower now desire to enter into
certain agreements to delineate and clarify their relationship and to further separate the businesses conducted by Cypress and SunPower (the “Separation”). 
  
 4. The parties intend in this Agreement, including the exhibits and schedules hereto, to set forth the principal
arrangements between them regarding the Separation. 
  
 NOW,
THEREFORE, in consideration of the foregoing and the covenants and agreements set forth below, the parties hereto agree as follows: 
  
 ARTICLE I 
  
 SEPARATION 
  
 1.1 Separation Date. For all purposes hereof, “Separation Date” shall mean the time immediately prior to the closing of the first firm commitment underwritten public offering of SunPower’s common stock
registered under the Securities Act of 1933, as amended. 
  
 1.2 Closing of Transactions. Unless otherwise provided herein or agreed by the parties, the closing of the transactions contemplated in Article II shall occur upon the exchange and delivery of the items required to be
delivered pursuant to Section 2.1 and Section 2.2. The closing shall occur at the offices of Wilson Sonsini Goodrich & Rosati, 650 Page Mill Road, Palo Alto, California 94304. 

 ARTICLE II 
  

DOCUMENTS AND ITEMS TO BE DELIVERED ON AND AFTER THE SEPARATION DATE 
  
 2.1 Documents to Be Delivered by Cypress on the Separation Date. On the Separation Date, unless otherwise
agreed by the parties, Cypress shall deliver (and if necessary, shall cause its appropriate Subsidiaries to deliver) to SunPower all of the following items and agreements: 
  
 (a) A duly executed Indemnification and Insurance Matters Agreement substantially in the form
attached hereto as Exhibit A; 
  
 (b) A duly executed Investor Rights Agreement substantially in the form attached hereto as Exhibit B; 
  
 (c) A duly executed Employee Matters Agreement substantially in the form attached hereto as Exhibit C; 
  
 (d) A duly executed Tax Sharing Agreement
substantially in the form attached hereto as Exhibit D; 
  
 (e) A duly executed Master Transition Services Agreement substantially in the form attached hereto as Exhibit E; 
  
 (f) A duly executed Contract of Lease substantially in the form attached hereto as Exhibit F;

  
 (g) A duly executed Wafer
Manufacturing Agreement substantially in the form attached hereto as Exhibit G; and 
  
 (h) Such other agreements, documents or instruments as the parties may agree are necessary or desirable in order to achieve the
purposes hereof. 
  
 2.2 Documents to Be Delivered by
SunPower on the Separation Date. On the Separation Date, unless otherwise agreed by the parties, SunPower shall deliver (and if necessary, shall cause its appropriate Subsidiaries to deliver) to Cypress all of the following: 
  
 (a) With respect to any item or agreement referred to
in Section 2.1 to which SunPower is a party, a duly executed counterpart of such item or agreement; and 
  
 (b) Such other agreements, documents or instruments as the parties may agree are necessary or desirable in order to achieve the
purposes hereof. 
  

 -2- 

 ARTICLE III 
  
 REPRESENTATIONS, WARRANTIES, COVENANTS AND OTHER MATTERS 
  
 3.1 Other Agreements. In addition to the Ancillary Agreements, Cypress and SunPower agree to execute or cause
to be executed by the appropriate parties and deliver such other agreements, instruments and documents as may be necessary or desirable to effect the purposes of this Agreement and the Ancillary Agreements. Neither Cypress nor SunPower shall be
obligated, in connection with the foregoing, to incur expenses other than reasonable out-of-pocket expenses, attorneys’ fees and recording or similar fees. 
  

3.2 Payment of Expenses. Except as otherwise provided in this Agreement, the Ancillary Agreements or any other agreement between the
parties relating to the Separation, SunPower and Cypress shall each be responsible for their own fees, costs and expenses incurred in connection with the Separation. 
  
 3.3 Dispute Resolution. 
  
 (a) If a dispute, controversy or claim (“Dispute”) arises between the parties
relating to the interpretation or performance of this Agreement or the Ancillary Agreements (other than the Contract of Lease, the Tax Sharing Agreement and indemnification pursuant to Section 1.6 of the Investor Rights Agreement which shall
not be subject to this Section 3.3), appropriate senior executives of each party who shall have the authority to resolve the matter shall attempt in good faith to negotiate a resolution of the Dispute prior to pursuing other available remedies.
The initial meeting between the appropriate senior executives shall be referred to herein as the “Dispute Resolution Commencement Date.” Discussions and correspondence relating to the resolution of such Dispute shall be exempt from
discovery or production and shall not be admissible in any court or arbitration proceeding. If the senior executives are unable to resolve the Dispute within thirty (30) days from the Dispute Resolution Commencement Date, and either party
wishes to pursue its rights relating to such Dispute, then the Dispute shall be mediated by a mutually acceptable mediator appointed pursuant to the mediation rules of JAMS/Endispute within thirty (30) days after written notice by one party to
the other demanding non-binding mediation. Neither party may unreasonably withhold consent to the selection of a mediator or the location of the mediation. The parties shall share the costs of the mediation equally, except that each party shall bear
its own costs and expenses, including attorneys’ fees, witness fees, travel expenses, and preparation costs. The parties may agree to replace mediation with some other form of non-binding or binding alternative dispute resolution. 

 
 (b) If the parties cannot resolve any Dispute
through mediation (or other form of non-binding or binding alternative dispute resolution) within ninety (90) days of the Dispute Resolution Commencement Date, unless otherwise mutually agreed, either party may seek relief in connection with
such Dispute from a court of competent jurisdiction. The use of any alternative dispute resolution procedures shall not be construed under the doctrine of laches, waiver or estoppel to adversely affect the rights of either party. 
  

 -3- 

 (c) Any Dispute regarding the following is not required to be negotiated or
mediated prior to seeking relief from a court of competent jurisdiction: 
  
 (i) breach of any obligation of confidentiality; or 
  
 (ii) any other claim pursuant to which interim relief from the court is sought to prevent serious and irreparable injury to one of the
parties or to others. However, the parties to the Dispute shall make a good faith effort to negotiate and mediate such Dispute, according to the above procedures, while such court action is pending. 
  
 (d) Unless otherwise agreed in writing, the parties
shall continue to be bound by and to perform each party’s obligations under this Agreement and each Ancillary Agreement during the course of dispute resolution pursuant to the provisions of this Section 3.3 with respect to all
matters not subject to the pending Dispute. 
  
 3.4
Governmental Approvals. To the extent that the Separation requires any Governmental Approvals, the parties shall use their commercially reasonable efforts to obtain any such Governmental Approvals. 
  
 3.5 Authority. Each of the parties hereto represents to the
other that: (a) it has the corporate or other requisite power and authority to execute, deliver and perform this Agreement, the Ancillary Agreements and the exhibits and schedules attached hereto and thereto, (b) the execution, delivery
and performance of this Agreement, the Ancillary Agreements that will be signed concurrently herewith and the exhibits and schedules attached hereto and thereto by it have been duly authorized by all necessary corporate or other actions, (c) it
has duly and validly executed and delivered this Agreement, the Ancillary Agreements that will be signed concurrently herewith and the exhibits and schedules attached hereto and thereto, and (d) each of this Agreement, the Ancillary Agreements
that will be signed concurrently herewith and the exhibits and schedules attached hereto and thereto is a legal, valid and binding obligation, enforceable against it in accordance with its terms, subject to applicable bankruptcy, insolvency,
reorganization, moratorium or other similar laws affecting creditors’ rights generally and general equity principles. 
  
 3.6 Confidentiality of Information.
  
 (a) Confidential Information. Information shall be deemed to be “Confidential Information” if such
Information: (i) is disclosed by one party (the “Disclosing Party”) to the other (the “Receiving Party”), and which, if in written, graphic, machine-readable or other tangible form is marked as
“confidential” or “proprietary,” or (ii) is reasonably understood to be proprietary and confidential to either SunPower or Cypress, or (iii) is otherwise deemed to be “confidential” in this Agreement or the
Ancillary Agreements. 
  
 (b) Confidential
Information Exclusions. Notwithstanding the provisions of Section 3.6(a), Confidential Information excludes Information that the Receiving Party can demonstrate: (i) was independently developed by the Receiving Party
without any use of the Disclosing Party’s Confidential Information or by the Receiving Party’s employees or other agents (or independent contractors hired by the Receiving Party) who have not been exposed to the 

  

 -4- 

 
Disclosing Party’s Confidential Information; (ii) becomes known to the Receiving Party, without restriction, from a source (other than the
Disclosing Party) that had a right to disclose it without breach of this Agreement or the Ancillary Agreements; (iii) was in the public domain at the time it was disclosed or enters the public domain through no act or omission of the Receiving
Party; (iv) was rightfully known to the Receiving Party, without restriction, at the time of disclosure or (v) is used or disclosed after five years from the date of first receipt (except that this clause (v) shall not apply to
Contract Specifications and designs of SunPower’s products or manufacturing, assembling, product testing or packaging processes of Cypress disclosed pursuant to the Wafer Manufacturing Agreement). 
  
 (c) Confidentiality Obligations. The Receiving
Party shall treat as confidential all of the Disclosing Party’s Confidential Information and shall not use that Confidential Information except as expressly permitted under this Agreement or the Ancillary Agreements. Without limiting the
foregoing, the Receiving Party shall use at least the same degree of care that it uses to prevent the disclosure of its own confidential Information of like importance, but in no event with less than reasonable care, to prevent the disclosure of the
Disclosing Party’s Confidential Information. 
  
 (d) Residuals. The restrictions set forth in Section 3.6(c) do not apply to a Receiving Party’s use of Residual Information, and Residual Information is not considered Confidential Information.
“Residual Information” means Information that is retained in the unaided memories of the Receiving Party’s employees who have had access to Confidential Information of the Disclosing Party or which otherwise constitutes the
general knowledge or skills of those employees. 
  
 (e) Remedies. Unauthorized use by a party of the other party’s Confidential Information will diminish the value of that Information. Therefore, if a party breaches any of its obligations with respect to confidentiality or
use of Confidential Information, the other party may seek both equitable relief (including injunctive relief) and money damages to protect its interest in that Confidential Information. 
  
 (f) Required Disclosure. Notwithstanding anything to the contrary in this Agreement or any
Ancillary Agreement, the Receiving Party is permitted to disclose the Disclosing Party’s Confidential Information to the extent required by applicable law or regulation (including, without limitation, any rule, regulation or policy statement of
any national securities exchange, market or automated quotation systems on which any of the Receiving Party’s securities are listed or quoted) or under the order or requirement of a court, administrative agency, or other Governmental Authority.
If the Receiving Party must disclose the Disclosing Party’s Confidential Information under the order or requirement of a court, administrative agency, or other Governmental Authority, the Receiving Party shall provide prompt notice thereof to
the Disclosing Party and shall, at the request of the Disclosing Party, use its reasonable efforts to obtain a protective order or otherwise prevent public disclosure of such Information. 
  
 (g) Public Announcements. Neither SunPower nor
Cypress shall make any initial public announcement relating to this Agreement or the Ancillary Agreements until both SunPower and Cypress approve the timing, form and content of a public announcement, which approval may not unreasonably be withheld
or delayed. 
  

 -5- 

 ARTICLE IV 
  

MISCELLANEOUS 
  
 4.1 Limitation of Liability. IN NO EVENT SHALL ANY MEMBER OF THE CYPRESS GROUP OR SUNPOWER GROUP BE LIABLE TO ANY OTHER
MEMBER OF THE CYPRESS GROUP OR SUNPOWER GROUP FOR ANY SPECIAL, CONSEQUENTIAL, INDIRECT, INCIDENTAL OR PUNITIVE DAMAGES OR LOST PROFITS, HOWEVER CAUSED AND ON ANY THEORY OF LIABILITY (INCLUDING NEGLIGENCE) ARISING IN ANY WAY OUT OF THIS AGREEMENT,
WHETHER OR NOT SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES; PROVIDED, HOWEVER, THAT THE FOREGOING LIMITATIONS SHALL NOT LIMIT EITHER PARTY’S INDEMNIFICATION OBLIGATIONS AS SET FORTH IN THE INDEMNIFICATION AND INSURANCE
MATTERS AGREEMENT. 
  
 4.2 Entire
Agreement. This Agreement, the Ancillary Agreements and the exhibits and schedules referenced or attached hereto and thereto, constitute the entire agreement between the parties with respect to the subject matter hereof
and thereof and shall supersede all prior written and oral and all contemporaneous oral agreements and understandings with respect to the subject matter hereof and thereof. 
  
 4.3 Governing Law. This Agreement shall be construed in accordance with, and all Disputes
hereunder shall be governed by, the laws of the State of California, excluding its conflict of law rules. The Superior Court of Santa Clara County and/or the United States District Court for the Northern District of California shall have
jurisdiction and venue over all Disputes between the parties that are permitted to be brought in a court of law pursuant to Section 3.3 above. 
  
 4.4 Termination. This Agreement and all Ancillary Agreements may be terminated at any time prior to the Separation Date
by and in the sole discretion of Cypress without the approval of SunPower. This Agreement and all Ancillary Agreements may be terminated at any time after the Separation Date by mutual consent of Cypress and SunPower. In the event of termination
pursuant to this Section 4.4, no party shall have any liability of any kind to the other party. 
  
 4.5 Notices. All notices, requests and other communications to any party hereunder shall be in writing and shall be
deemed properly delivered, given and received: (a) when delivered by hand; (b) on the day sent by facsimile provided that the sender has received confirmation of transmission as of or prior to 5:00 p.m. local time of the recipient on such
day; (c) the first business day after sent by facsimile (to the extent that the sender has received confirmation of transmission after 5:00 p.m. local time of the recipient on the day sent by facsimile); or (d) the next business day after
sent by registered mail or by courier or express delivery service, in any case to the address or facsimile telephone number set forth beneath the name of such party below (or to such other address or facsimile telephone number as such party shall
have specified in a written notice given to the other parties hereto): 
  

			
	 if to Cypress:
	  	 
		
	 	  	Cypress Semiconductor Corporation
	 	  	3901 North First Street
	 	  	San Jose, CA 95134
	 	  	Attention: Chief Financial Officer and Director of Legal
	 	  	Fax: (408) 943-4730

  

 -6- 

			
	 if to SunPower:
	  	 
		
	 	  	SunPower Corporation
	 	  	430 Indio Way
	 	  	Sunnyvale, CA 94085
	 	  	Attention: Chief Financial Officer
	 	  	Fax: (408) 739-7713

  
 4.6
Counterparts. This Agreement, the Ancillary Agreements and the exhibits and schedules attached hereto and thereto may be executed in counterparts, each of which shall be deemed to be an original but all of which shall constitute one and
the same agreement. 
  
 4.7 Binding Effect;
Assignment. This Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective legal representatives and successors in interest, and nothing in this Agreement, express or implied, is intended to
confer upon any other Person any rights or remedies of any nature whatsoever under or by reason of this Agreement. This Agreement may be enforced separately by each member of the Cypress Group and each member of the SunPower Group. Neither party may
assign this Agreement or any rights or obligations hereunder, without the prior written consent of the other party, and any such assignment shall be void. Any permitted assignee shall agree to perform the obligations of the assignor of this
Agreement, and this Agreement shall inure to the benefit of and be binding upon any permitted assignee. 
  
 4.8 Severability. If any term or other provision of this Agreement or the exhibits or schedules attached hereto is determined by a
nonappealable decision by a court, administrative agency or arbitrator to be invalid, illegal or incapable of being enforced by any rule of law or public policy, all other conditions and provisions of this Agreement shall nevertheless remain in full
force and effect so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to either party. Upon such determination that any term or other provision is invalid, illegal or
incapable of being enforced, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in an acceptable manner to the end that transactions contemplated hereby
are fulfilled to the fullest extent possible. 
  
 4.9
Failure or Indulgence Not Waiver; Remedies Cumulative. No failure or delay on the part of either party hereto in the exercise of any right hereunder shall impair such right or be construed to be a waiver of, or acquiescence in, any
breach of any representation, warranty or agreement herein, nor shall any single or partial exercise or waiver of any such right preclude other or further exercise thereof or of any other right. All rights and remedies existing under this Agreement
or the exhibits or schedules attached hereto are cumulative to, and not exclusive of, any rights or remedies otherwise available. 
  

 -7- 

 4.10 Amendment. No change or amendment shall be made to this Agreement or the exhibits
or schedules attached hereto except by an instrument in writing signed on behalf of each of the parties to such agreement. 
  
 4.11 Interpretation. The headings contained in this Agreement, in any exhibit or schedule attached hereto and in the table of contents
to this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. Any capitalized term used in any exhibit or schedule but not otherwise defined therein, shall have the meaning
assigned to such term in this Agreement. When a reference is made in this Agreement to an article, section, exhibit or schedule, such reference shall be to an article or section of, or an exhibit or schedule to, this Agreement, unless otherwise
indicated. 
  
 4.12 Conflicting Agreements. In
the event of conflict between this Agreement and any Ancillary Agreement, the provisions of such Ancillary Agreement shall prevail. 
  
 ARTICLE V 
  
 DEFINITIONS 
  
 5.1 Affiliated Company. “Affiliated Company” of any Person means any entity that controls, is controlled by, or is under common control with such Person; provided, however that neither
Cypress nor any other entity that is an Affiliated Company of Cypress but not a Subsidiary of SunPower shall be an “Affiliated Company” of SunPower. As used herein, “control” means the possession, directly or indirectly, of the
power to direct or cause the direction of the management and policies of such entity, whether through ownership of voting securities or other interests, by contract or otherwise. 
  
 5.2 Ancillary Agreements. “Ancillary Agreements” means the items and agreements
(together with all documents attached thereto) referred to in Section 2.1 hereof. 
  
 5.3 Confidential Information. “Confidential Information” has the meaning set forth in Section 3.6(a) hereof. 
  
 5.4 Disclosing Party. “Disclosing Party”
has the meaning set forth in Section 3.6(a) hereof. 
  
 5.5 Dispute. “Dispute” has the meaning set forth in Section 3.3(a) hereof. 
  
 5.6 Dispute Resolution Commencement Date. “Dispute Resolution Commencement Date” has the meaning set forth in
Section 3.3(a) hereof. 
  
 5.7 Governmental
Approvals. “Governmental Approvals” means any notices, reports or other filings to be made, or any consents, registrations, approvals, permits or authorizations to be obtained from, any Governmental Authority.

  

 -8- 

 5.8 Governmental Authority. “Governmental Authority” means any
federal, state, local, foreign or international court, government, department, commission, board, bureau, agency, official or other regulatory, administrative or governmental authority. 
  
 5.9 Information. “Information” means information, whether or not patentable or
copyrightable, in written, oral, electronic or other tangible or intangible forms, stored in any medium, including studies, reports, records, books, contracts, instruments, surveys, discoveries, ideas, concepts, know-how, techniques, designs,
specifications, drawings, blueprints, diagrams, models, prototypes, samples, flow charts, data, computer data, disks, diskettes, tapes, computer programs or other software, marketing plans, customer names, communications by or to attorneys
(including attorney-client privileged communications), memos and other materials prepared by attorneys or under their direction (including attorney work product), and other technical, financial, employee or business information or data. 

 
 5.10 Cypress Group. “Cypress Group”
means Cypress, each Subsidiary and Affiliated Company of Cypress (other than any member of the SunPower Group) immediately after the Separation Date and each Person that becomes a Subsidiary or Affiliated Company of Cypress after the Separation
Date. 
  
 5.11
Person. “Person” means an individual, a partnership, a corporation, a limited liability company, an association, a joint stock company, a trust, a joint venture, an unincorporated organization and a governmental entity
or any department, agency or political subdivision thereof. 
  
 5.12 Receiving Party. “Receiving Party” has the meaning set forth in Section 3.6(a) hereof. 
  
 5.13 Residual Information. “Residual Information” has the meaning set forth in Section 3.6(d) hereof.

  
 5.14
Separation. “Separation” has the meaning set forth in the Recitals hereof. 
  
 5.15 Separation Date. “Separation Date” has the meaning set forth in Section 1.1 hereof. 
  
 5.16 SunPower Group. “SunPower Group”
means SunPower, each Subsidiary and Affiliated Company of SunPower immediately after the Separation Date and each Person that becomes a Subsidiary or Affiliated Company of SunPower after the Separation Date. 
  
 5.17 Subsidiary. “Subsidiary” of any
Person means a corporation or other organization whether incorporated or unincorporated of which at least a majority of the securities or interests having by the terms thereof ordinary voting power to elect at least a majority of the board of
directors or others performing similar functions with respect to such corporation or other organization is directly or indirectly owned or controlled by such Person or by any one or more of its Subsidiaries, or by such Person and one or more of its
Subsidiaries; provided, however, that no Person that is not directly or indirectly wholly-owned by any other Person shall be a Subsidiary of such other Person unless such other Person controls, or has the right, power or ability to control,
that Person. 
  

 -9- 

  
 IN WITNESS WHEREOF, the
parties have signed this Master Separation Agreement effective as of the date first set forth above. 
  

									
	CYPRESS CORPORATION	 	 	 	SUNPOWER CORPORATION
					
	By:	 	 	 	 	 	By:	 	 
					
	 Name:
	 	 	 	 	 	 Name:
	 	 
					
	 Title:
	 	 	 	 	 	 Title:Indemnification and Insurance Matters Agreement

  
 Exhibit 10.13

  
 Indemnification and Insurance Matters Agreement

  
 between 
  
 Cypress Semiconductor Corporation 
  
 and 
  
 SunPower Corporation 
  
 October 6, 2005 

  
 TABLE OF CONTENTS

  

							
	 	  	 	  	Page

	 ARTICLE I MUTUAL RELEASES; INDEMNIFICATION
	  	1
			
	 1.1.
	  	 Release of Pre-Closing Claims
	  	1
	 1.2.
	  	 Indemnification by SunPower
	  	3
	 1.3.
	  	 Indemnification by Cypress
	  	3
	 1.4.
	  	 Insurance Proceeds and Other Recoveries
	  	4
	 1.5.
	  	 Procedures for Defense, Settlement and Indemnification of Third Party Claims
	  	4
	 1.6.
	  	 Additional Matters
	  	5
	 1.7.
	  	 Survival of Indemnities
	  	6
		
	 ARTICLE II INSURANCE MATTERS
	  	6
			
	 2.1.
	  	 Cooperation
	  	6
	 2.2.
	  	 SunPower Insurance Coverage After the Separation Date
	  	7
	 2.3.
	  	 Responsibilities for Deductibles and/or Self-insured Obligations
	  	7
	 2.4.
	  	 Reimbursement
	  	7
	 2.5.
	  	 No Assignment or Waiver
	  	7
	 2.6.
	  	 No Liability
	  	7
	 2.7.
	  	 Further Agreements
	  	7
		
	 ARTICLE III MISCELLANEOUS
	  	8
			
	 3.1.
	  	 Limitation of Liability
	  	8
	 3.2.
	  	 Entire Agreement
	  	8
	 3.3.
	  	 Governing Law
	  	8
	 3.4.
	  	 Dispute Resolution
	  	8
	 3.5.
	  	 Notices
	  	8
	 3.6.
	  	 Counterparts
	  	9
	 3.7.
	  	 Binding Effect; Assignment
	  	9
	 3.8.
	  	 Severability
	  	9
	 3.9.
	  	 Failure or Indulgence Not Waiver; Remedies Cumulative
	  	9
	 3.10.
	  	 Amendment
	  	9
	 3.11.
	  	 Interpretation
	  	10
		
	 ARTICLE IV DEFINITIONS
	  	10
			
	 4.1.
	  	 Action
	  	10
	 4.2.
	  	 Ancillary Agreement
	  	10
	 4.3.
	  	 Assets
	  	10
	 4.4.
	  	 Cypress Business
	  	10
	 4.5.
	  	 Cypress Group
	  	10
	 4.6.
	  	 Cypress Indemnitees
	  	10
	 4.7.
	  	 Dispute
	  	10

  

 -i- 

 TABLE OF CONTENTS 
 (Continued) 
  

					
	 	  	 	  	Page

	 4.8.
	  	 Distribution
	  	10
	 4.9.
	  	 Environmental Conditions
	  	10
	 4.10.
	  	 Environmental Laws
	  	11
	 4.11.
	  	 Governmental Authority
	  	11
	 4.12.
	  	 Group
	  	11
	 4.13.
	  	 Hazardous Materials
	  	11
	 4.14.
	  	 Hazardous Materials Release
	  	11
	 4.15.
	  	 Indemnifying Party
	  	11
	 4.16.
	  	 Indemnitee
	  	11
	 4.17.
	  	 Information
	  	11
	 4.18.
	  	 Insurance Claim
	  	11
	 4.19.
	  	 Insurance Policies
	  	11
	 4.20.
	  	 Insurance Proceeds
	  	11
	 4.21.
	  	 IPO
	  	11
	 4.22.
	  	 IPO Liabilities
	  	11
	 4.23.
	  	 IPO Registration Statement
	  	12
	 4.24.
	  	 Liabilities
	  	12
	 4.25.
	  	 Person
	  	12
	 4.26.
	  	 Separation
	  	12
	 4.27.
	  	 Separation Agreement
	  	12
	 4.28.
	  	 Separation Date
	  	12
	 4.29.
	  	 Subsidiary
	  	12
	 4.30.
	  	 SunPower Business
	  	12
	 4.31.
	  	 SunPower Contingent Liability
	  	12
	 4.32.
	  	 SunPower Employment Liabilities
	  	12
	 4.33.
	  	 SunPower Facilities
	  	13
	 4.34.
	  	 SunPower Group
	  	13
	 4.35.
	  	 SunPower Indemnitees
	  	13
	 4.36.
	  	 SunPower Liabilities
	  	13
	 4.37.
	  	 SunPower Payables
	  	14
	 4.38.
	  	 Tax Sharing Agreement
	  	14
	 4.39.
	  	 Taxes
	  	14
	 4.40.
	  	 Texas Facility
	  	14
	 4.41.
	  	 Third Party Claim
	  	14

  

 -ii- 

  
 INDEMNIFICATION AND
INSURANCE MATTERS AGREEMENT 
  
 This Indemnification and
Insurance Matters Agreement (this “Agreement”) is entered into as of October 6, 2005, between Cypress Semiconductor Corporation, a Delaware corporation (“Cypress”), and SunPower Corporation, a Delaware
corporation (“SunPower”). Capitalized terms used herein and not otherwise defined herein shall have the meanings ascribed to such terms in ARTICLE IV below. 
  
 RECITALS 
  
 1. Cypress and SunPower are entering into a Master Separation Agreement dated as of October 6, 2005 (the “Separation Agreement”) and
other Ancillary Agreements to further separate the businesses conducted by Cypress and SunPower (the “Separation”). 
  
 2. In connection with the Separation, the parties desire to set forth certain agreements between them regarding indemnification and insurance. 

 
 3. This Agreement shall be void and of no force and effect until the
occurrence of the “Separation Date” as defined in the Separation Agreement, at which time this Agreement shall become effective. 
  
 NOW, THEREFORE, in consideration of the foregoing and the covenants and agreements set forth below, the parties hereto agree as follows: 
  
 ARTICLE I 
  
 MUTUAL RELEASES; INDEMNIFICATION 
  
 1.1. Release of Pre-Closing Claims. 
  
 (a) SunPower Release. Except as provided in Section 1.1(d) to this Agreement, effective as of the
Separation Date, SunPower does hereby, for itself and as agent for each member of the SunPower Group, remise, release and forever discharge the Cypress Indemnitees from any and all Liabilities whatsoever, whether at law or in equity (including any
right of contribution), whether arising under any contract or agreement, by operation of law or otherwise, existing or arising from any acts or events occurring or failing to occur or alleged to have occurred or to have failed to occur or any
conditions existing or alleged to have existed on or before the Separation Date, including in connection with the transactions and all other activities to implement any of the Separation, the IPO and the Distribution. 
  
 (b) Cypress Release. Except as provided in Section 1.1(d),
effective as of the Separation Date, Cypress does hereby, for itself and as agent for each member of the Cypress Group, remise, release and forever discharge the SunPower Indemnitees from any and all Liabilities whatsoever, whether at law or in
equity (including any right of contribution), whether arising under any contract 

 
or agreement, by operation of law or otherwise, existing or arising from any acts or events occurring or failing to occur or alleged to have occurred or to
have failed to occur or any conditions existing or alleged to have existed on or before the Separation Date, including in connection with the transactions and all other activities to implement any of the Separation, the IPO and the Distribution.

  
 (c) Release and Waiver of Unknown Claims. SunPower, for
itself and as agent for each member of the SunPower Group, and Cypress, for itself and as agent for each member of the Cypress Group, do hereby agree, represent, and warrant that the matters released herein are not limited to matters which are known
or disclosed, and that they hereby waive any and all rights and benefits which such party now has, or in the future may have, conferred upon such party by virtue of the provisions of Section 1542 of the Civil Code of the State of California
which provides: 
  
 A GENERAL RELEASE DOES NOT EXTEND TO
CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASED, WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR. 
  
 SunPower, for itself and as agent for each member of the SunPower Group, and
Cypress, for itself and as agent for each member of the Cypress Group, waive any and all provisions, rights and benefits conferred by any law of any state or territory of the United States, or principle of common law, which is similar, comparable or
equivalent to Civil Code Section 1542. SunPower, for itself and as agent for each member of the SunPower Group, and Cypress, for itself and as agent for each member of the Cypress Group, may hereafter discover facts in addition to or different
from those which it now knows or believes to be true with respect to the subject matter of this release, but each shall be deemed to have, finally, and forever settled and released any and all claims, known or unknown, suspected or unsuspected,
contingent or non-contingent, whether or not concealed or hidden, which now exist, or heretofore have existed upon any theory of law or equity now existing or coming into existence in the future, including but not limited to, conduct which is
negligent, intentional, with or without malice, or a breach of any duty, law or rule, without regard to the subsequent discovery or existence of such different or additional facts. 
  
 (d) No Impairment. Nothing contained in Section 1.1(a), Section 1.1(b) or
Section 1.1(c) shall impair any right of any Person to enforce the Separation Agreement or any other Ancillary Agreement (including this Agreement) or other agreement in force and effect between SunPower and Cypress as of the Separation
Date (in each case in accordance with its terms, including, without limitation, the provisions of Section 1.2, Section 1.3 and Section 1.4 hereof) or to recover monies owed pursuant to valid inter-company accounts
between SunPower and Cypress as of the Separation Date. 
  
 (e)
No Actions as to Released Claims. SunPower agrees, for itself and as agent for each member of the SunPower Group, not to make any claim or demand, or commence any Action asserting any claim or demand, including any claim of contribution or any
indemnification, against Cypress or any member of the Cypress Group, or any other Person released pursuant to Section 1.1(a), with respect to any Liabilities released pursuant to Section 1.1(a). Cypress agrees, 

  

 -2- 

 
for itself and as agent for each member of the Cypress Group, not to make any claim or demand, or commence any Action asserting any claim or demand,
including any claim of contribution or any indemnification, against SunPower or any member of the SunPower Group, or any other Person released pursuant to Section 1.1(b), with respect to any Liabilities released pursuant to
Section 1.1(b). 
  
 (f) Further Instruments. At
any time, at the request of the other party, each party shall cause each member of its respective Group to execute and deliver releases reflecting the provisions hereof and such other documents as are necessary to effect the purposes hereof.

  
 1.2. Indemnification by SunPower. Except as
otherwise provided in this Agreement, SunPower shall, for itself and as agent for each member of the SunPower Group, indemnify, defend (or, where applicable, pay the defense costs for) and hold harmless the Cypress Indemnitees from and against any
and all Liabilities that any third party seeks to impose upon the Cypress Indemnitees, or that are imposed upon the Cypress Indemnitees, and that relate to, arise out of or result from any of the following items (without duplication): (a) the
SunPower Business or any SunPower Liability; (b) any breach by SunPower or any member of the SunPower Group of the Separation Agreement or any of the Ancillary Agreements (including this Agreement, it being acknowledged and agreed that
(i) the indemnification provided for in this Agreement shall not limit any indemnification rights specifically set forth in the Separation Agreement or any Ancillary Agreement provided that such indemnification rights shall be subject to the
provisions of Section 1.5, Section 1.6 and Article II hereof and (ii) all disclaimers of warranties, limitations of liability or remedies, exculpation or similar provisions in the Separation Agreement or any
Ancillary Agreement shall not be deemed to be limited by anything herein, including, without limitation, Section 8.2 of the Employee Matters Agreement, Sections 6.2 and 6.3 of the Master Transition Services Agreement, Section 13(b) of the
Contract of Lease and Sections 4.2.1, 7.3 and 7.4 of the Wafer Manufacturing Agreement); and (c) any IPO Liabilities. 
  
 1.3. Indemnification by Cypress. Except as otherwise provided in this Agreement, Cypress shall, for itself and as agent for each member
of the Cypress Group, indemnify, defend (or, where applicable, pay the defense costs for) and hold harmless the SunPower Indemnitees from and against any and all Liabilities that any third party seeks to impose upon the SunPower Indemnitees, or that
are imposed upon the SunPower Indemnitees, and that relate to, arise out of or result from any of the following items (without duplication): (a) the Cypress Business or any Liability of the Cypress Group other than the SunPower Liabilities and
(b) any breach by Cypress or any member of the Cypress Group of the Separation Agreement or any of the Ancillary Agreements (including this Agreement, it being acknowledged and agreed that (i) the indemnification provided for in this
Agreement shall not limit any indemnification rights specifically set forth in the Separation Agreement or any Ancillary Agreement provided that such indemnification rights shall be subject to the provisions of Section 1.5,
Section 1.6 and Article II hereof and (ii) all disclaimers of warranties, limitations of liability or remedies, exculpation or similar provisions in the Separation Agreement or any Ancillary Agreement shall not be deemed to
be limited by anything herein, including, without limitation, Section 8.2 of the Employee Matters Agreement, Sections 6.2 and 6.3 of the Master Transition Services Agreement, Section 13(b) of the Contract of Lease and Sections 4.2.1, 7.3
and 7.4 of the Wafer Manufacturing Agreement). 
  

 -3- 

 1.4. Insurance Proceeds and Other Recoveries. 
  
 (a) Insurance Claims. If a party has a claim for monies from an
insurer or another third party in respect of any loss to which indemnification might otherwise be sought pursuant to this Agreement, then such party (the “Indemnitee”) shall first proceed against the insurer or other third party
with respect to such indemnifiable loss (an “Insurance Claim”). Only after final satisfaction of each such Insurance Claim shall a party (the “Indemnifying Party”) be liable for indemnification pursuant to this
Agreement. 
  
 (b) Advances Against Insurance Proceeds.
Despite the existence of an Insurance Claim, an Indemnifying Party shall make prompt payment to an Indemnitee, prior to the receipt of any Insurance Proceeds, in the form of an advance against future Insurance Proceeds, of the full amount required
to be made pursuant to the indemnification provisions contained in this Agreement and otherwise determined to be due and owing by an Indemnifying Party. 
  
 (c) Reductions for Insurance Proceeds. If an Indemnitee receives Insurance Proceeds or other amounts from an insurer or third party with respect to
an Insurance Claim for any indemnifiable loss under this Agreement: 
  
 (i) the amount that the Indemnifying Party is or may be required to pay to or on behalf of any other Person indemnified pursuant to this Agreement shall be reduced by any Insurance Proceeds or other amounts actually
received from third parties by such Indemnitee in respect of the related Liability; and 
  
 (ii) such Indemnitee shall hold such Insurance Proceeds or other amounts in trust for the benefit of the Indemnifying Party (or
Indemnifying Parties) and shall pay to the Indemnifying Party, as promptly as practicable after receipt, a sum equal to the amount of such Insurance Proceeds or other amounts received, up to the aggregate amount of any payments received from the
Indemnifying Party pursuant to this Agreement in respect of such indemnifiable loss reduced by the amount of any indemnifiable loss still owed by the Indemnifying Party to the Indemnitee (or, if there is more than one Indemnifying Party, the
Indemnitee shall pay each Indemnifying Party its proportionate share (based on payments received from the Indemnifying Parties) of such amounts). 
  
 (d) No Benefit to Insurer. Notwithstanding Section 1.4(b) or any other provision of this Agreement, it is the intention of the parties
that no insurer or any other third party shall be (i) entitled to a benefit it would not be entitled to receive in the absence of the foregoing indemnification provisions, or (ii) relieved of the responsibility to pay any claims for which
it is obligated. If the parties believe that the payment of any advance pursuant to Section 1.4(b) has or would have any of the effects described in the previous sentence, then no such advance shall be made and the Indemnifying Party
shall not be required to make any payment for indemnification until after resolution of any Insurance Claim in the manner set forth in Section 1.4(a). 
  
 1.5. Procedures for Defense, Settlement and Indemnification of Third Party Claims.
  
 (a) Notice of Claims. If a Cypress Indemnitee or a SunPower Indemnitee
(as applicable) shall receive notice, or otherwise become aware, of any claim or of the commencement by any such 

  

 -4- 

 
Person of any Action (each such case, a “Third Party Claim”) with respect to which an Indemnifying Party may be obligated to provide
indemnification to an Indemnitee pursuant to this Agreement or any other Ancillary Agreement, Cypress and SunPower (as applicable) shall ensure that such Indemnitee shall give such Indemnifying Party written notice thereof as soon as practicable
and, in any event, within fifteen (15) days after becoming aware of such Third Party Claim. Any such notice shall (i) describe the Third Party Claim in reasonable detail and, if known, the estimated damages resulting from such Third Party
Claim incurred or reasonably expected to be incurred by the Indemnitee and (ii) explain in reasonable detail the basis for the claim by Indemnitee for indemnification to the extent of facts then known by the Indemnitee. In addition, such
written notice shall be accompanied by copies of correspondence with third parties or other documentation necessary to understand the claim for indemnification to the extent applicable and then in the possession of the Indemnitee. Notwithstanding
the foregoing, the delay or failure of any Indemnitee or other Person to give notice as provided in this Section 1.5(a) shall not relieve the relevant Indemnifying Party of its obligations under this Article I, except to the
extent that such Indemnifying Party is prejudiced by such delay or failure to give notice. 
  
 (b) Defense By Indemnifying Party. Within 30 days after the receipt of notice from an Indemnitee in accordance with Section 1.5(a) (or sooner, if the nature of such Third Party Claim so requires),
the Indemnifying Party shall notify the Indemnitee as to whether the Indemnifying Party will assume responsibility for managing the defense of such Third Party Claim, which notice shall specify any reservations or exceptions. 
  
 (c) Defense By Indemnitee. If an Indemnifying Party fails to assume
responsibility for managing the defense of a Third Party Claim, or fails to notify an Indemnitee that it will assume responsibility as provided in Section 1.5(b), such Indemnitee may manage the defense of such Third Party Claim;
provided, however, that the Indemnifying Party shall reimburse all costs and expenses incurred in connection with such defense in the event it is ultimately determined that the Indemnifying Party is obligated to indemnify the Indemnitee with
respect to such Third Party Claim. 
  
 (d) No Consent to
Certain Judgments or Settlements Without Consent. Notwithstanding any provision of this Section 1.5 to the contrary, no party shall consent to entry of any judgment or enter into any settlement of a Third Party Claim without the
consent of the other party (such consent not to be unreasonably withheld) if the effect of such judgment or settlement is or would be to (i) permit any injunction, declaratory judgment, other order or other nonmonetary relief to be entered,
directly or indirectly, against the other party, or (ii) affect the other party in a material fashion with respect to the allocation of Liabilities and related indemnities set forth in the Separation Agreement, this Agreement or any other
Ancillary Agreement. 
  
 1.6. Additional
Matters.
  
 (a) Cooperation in Defense and
Settlement. With respect to any Third Party Claim that implicates both SunPower and Cypress in a material fashion with respect to the responsibilities for management of defense and related indemnities set forth in the Separation Agreement, this
Agreement or any of the Ancillary Agreements, the parties agree to cooperate fully and maintain a joint defense (in a manner that will preserve the attorney-client privilege with respect thereto) so as to minimize such liabilities and defense costs
associated therewith. The party that is not responsible 

  

 -5- 

 
for managing the defense of such Third Party Claims shall, upon reasonable request, be consulted with respect to significant matters relating thereto and
may, if necessary or helpful in such party’s reasonable judgment, engage counsel to assist in the defense of such claims at such party’s own expense. 
  

(b) Substitution. With respect to any Action in which the Indemnifying Party is not a named defendant, if either the Indemnitee or the
Indemnifying Party shall so request, the parties shall use commercially reasonable efforts to substitute the Indemnifying Party for the named defendant. If such substitution cannot be achieved for any reason or is not requested, the rights and
obligations of the parties regarding indemnification and the management of the defense of claims as set forth in this Article I shall not be altered. 
  
 (c) Subrogation. In the event of payment by or on behalf of any Indemnifying Party to or on behalf of any Indemnitee in connection with any Third
Party Claim (including payment of costs of defense), such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnitee, in whole or in part based upon whether the Indemnifying Party has paid all or only part of the
Indemnitee’s Liability, as to any events or circumstances in respect of which such Indemnitee may have any right, defense or claim relating to such Third Party Claim against any claimant or plaintiff asserting such Third Party Claim or against
any other person. Such Indemnitee shall cooperate with such Indemnifying Party in a reasonable manner, and at the cost and expense of such Indemnifying Party, in prosecuting any subrogated right, defense or claim. 
  
 (d) Not Applicable to Taxes. This Agreement shall not apply to any
Action relating to Taxes (which are covered by the Tax Sharing Agreement). 
  
 1.7. Survival of Indemnities. Subject to Section 3.7, the rights and obligations of the members of the Cypress Group and the SunPower Group under this Article I shall survive the
sale or other transfer by any party of any Assets or businesses or the assignment by it of any Liabilities or the sale by any member of the Cypress Group or the SunPower Group of the capital stock or other equity interests of any Subsidiary to any
Person. 
  
 ARTICLE II 
  
 INSURANCE MATTERS 
  
 2.1. Cooperation. Each of Cypress and SunPower shall share
such Information as is reasonably necessary in order to permit the other to manage and conduct its insurance matters in an orderly fashion. Each of Cypress and SunPower, at the request of the other, shall cooperate with and use commercially
reasonable efforts to assist the other in recoveries for claims made under any insurance policy for the benefit of any insured party, and neither Cypress nor SunPower, nor any of their Subsidiaries, shall take any action that such party knows would
jeopardize or otherwise interfere with either party’s ability to collect any proceeds payable pursuant to any insurance policy. Cypress and SunPower shall cooperate with each other in all respects, and they shall execute any additional
documents that are reasonably necessary to effectuate the provisions of this Article II. 
  

 -6- 

 2.2. SunPower Insurance Coverage After the Separation Date. Except as provided in the
Master Transition Services Agreement attached as Exhibit E to the Separation Agreement, following the Separation Date, SunPower shall be responsible for obtaining and maintaining insurance programs for its risk of loss and such insurance
arrangements shall be separate and apart from Cypress’s insurance programs. 
  
 2.3. Responsibilities for Deductibles and/or Self-insured Obligations. SunPower shall reimburse Cypress for all amounts necessary to exhaust or otherwise satisfy all applicable self-insured
retentions, amounts for fronted policies, deductibles and retrospective premium adjustments and similar amounts not covered by Insurance Policies in connection with any SunPower Liabilities. 
  
 2.4. Reimbursement. SunPower shall reimburse Cypress for
all amounts incurred (including but not limited to reasonable attorneys fees, forensic accountants fees and general adjusters fees) to pursue insurance recoveries from Insurance Policies for SunPower Liabilities. 
  
 2.5. No Assignment or Waiver. This Agreement shall not be
considered as an attempted assignment of any policy of insurance or as a contract of insurance and shall not be construed to waive any right or remedy of any member of the Cypress Group in respect of any Insurance Policy or any other contract or
policy of insurance. 
  
 2.6. No
Liability. SunPower does hereby, for itself and as agent for each other member of the SunPower Group, agree that no member of the Cypress Group or any Cypress Indemnitee shall have any Liability whatsoever as a result of the insurance
policies and practices of Cypress and its Subsidiaries as in effect at any time prior to the Separation Date, including as a result of the level or scope of any such insurance, the creditworthiness of any insurance carrier, the terms and conditions
of any policy, the adequacy or timeliness of any notice to any insurance carrier with respect to any claim or potential claim or otherwise. 
  
 2.7. Further Agreements. The parties acknowledge that they intend to allocate financial obligations without violating any laws
regarding insurance, self-insurance or other financial responsibility. If it is determined that any term or action undertaken pursuant to the Separation Agreement, this Agreement or any Ancillary Agreement would violate any insurance, self-insurance
or related financial responsibility law or regulation, all other conditions and provisions of such affected Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated
hereby is not affected in any manner materially adverse to either party. Upon such determination that any term or action would violate any insurance, self-insurance or related financial responsibility law or regulation, the parties shall negotiate
in good faith to modify such affected Agreement so as to effect the original intent of the parties as closely as possible in an acceptable manner to the end that transactions contemplated hereby are fulfilled to the fullest extent possible.

  

 -7- 

 ARTICLE III 
  
 MISCELLANEOUS 
  
 3.1. Limitation of Liability. IN NO EVENT SHALL ANY MEMBER OF THE CYPRESS GROUP OR SUNPOWER GROUP BE LIABLE TO ANY OTHER MEMBER OF THE
CYPRESS GROUP OR SUNPOWER GROUP FOR ANY SPECIAL, CONSEQUENTIAL, INDIRECT, INCIDENTAL OR PUNITIVE DAMAGES OR LOST PROFITS, HOWEVER CAUSED AND ON ANY THEORY OF LIABILITY (INCLUDING NEGLIGENCE) ARISING IN ANY WAY OUT OF THIS AGREEMENT, WHETHER OR NOT
SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES; PROVIDED, HOWEVER, THAT THE FOREGOING LIMITATIONS SHALL NOT LIMIT EITHER PARTY’S INDEMNIFICATION OBLIGATIONS AS SET FORTH IN ARTICLE I HEREOF. 
  
 3.2. Entire Agreement. This Agreement, the Separation
Agreement, the other Ancillary Agreements and the exhibits and schedules referenced or attached hereto and thereto, constitute the entire agreement between the parties with respect to the subject matter hereof and thereof and shall supersede all
prior written and oral and all contemporaneous oral agreements and understandings with respect to the subject matter hereof and thereof. 
  
 3.3. Governing Law. This Agreement shall be construed in accordance with, and all Disputes hereunder shall be governed by, the laws of
the State of California, excluding its conflict of law rules. The Superior Court of Santa Clara County and/or the United States District Court for the Northern District of California shall have jurisdiction and venue over all Disputes between the
parties that are permitted to be brought in a court of law pursuant to Section 3.4. 
  
 3.4. Dispute Resolution. Any Disputes under this Agreement shall be addressed using the same procedure set forth in the Separation
Agreement. 
  
 3.5. Notices. All notices,
requests and other communications to any party hereunder shall be in writing and shall be deemed properly delivered, given and received: (a) when delivered by hand; (b) on the day sent by facsimile provided that the sender has received
confirmation of transmission as of or prior to 5:00 p.m. local time of the recipient on such day; (c) the first business day after sent by facsimile (to the extent that the sender has received confirmation of transmission after 5:00 p.m. local
time of the recipient on the day sent by facsimile); or (d) the next business day after sent by registered mail or by courier or express delivery service, in any case to the address or facsimile telephone number set forth beneath the name of
such party below (or to such other address or facsimile telephone number as such party shall have specified in a written notice given to the other parties hereto): 
  
 if to Cypress: 
  
 Cypress Semiconductor Corporation 
 3901
North First Street 
 San Jose, CA 95134 
 Attention: Chief Financial Officer and Director of Legal 
 Fax: (408) 943-4730 
  

 -8- 

 if to SunPower: 
  

SunPower Corporation 
 430 Indio Way

 Sunnyvale, CA 94085 
 Attention: Chief Financial Officer 
 Fax: (408) 739-7713 
  
 3.6. Counterparts. This Agreement, including the exhibits and schedules hereto, may be
executed in counterparts, each of which shall be deemed to be an original but all of which shall constitute one and the same agreement. 
  
 3.7. Binding Effect; Assignment. This Agreement shall inure to the benefit of and be binding upon the parties hereto and their
respective legal representatives and successors in interest, and nothing in this Agreement, express or implied, is intended to confer upon any other Person any rights or remedies of any nature whatsoever under or by reason of this Agreement. This
Agreement may be enforced separately by each member of the Cypress Group and each member of the SunPower Group. Neither party may assign this Agreement or any rights or obligations hereunder, without the prior written consent of the other party, and
any such assignment shall be void. Any permitted assignee shall agree to perform the obligations of the assignor of this Agreement, and this Agreement shall inure to the benefit of and be binding upon any permitted assignee. 
  
 3.8. Severability. If any term or other provision of this
Agreement or the exhibits or schedules attached hereto is determined by a nonappealable decision by a court, administrative agency or arbitrator to be invalid, illegal or incapable of being enforced by any rule of law or public policy, all other
conditions and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to either party. Upon
such determination that any term or other provision is invalid, illegal or incapable of being enforced, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as
possible in an acceptable manner to the end that transactions contemplated hereby are fulfilled to the fullest extent possible. 
  
 3.9. Failure or Indulgence Not Waiver; Remedies Cumulative. No failure or delay on the part of either party hereto in the exercise of
any right hereunder shall impair such right or be construed to be a waiver of, or acquiescence in, any breach of any representation, warranty or agreement herein, nor shall any single or partial exercise or waiver of any such right preclude other or
further exercise thereof or of any other right. All rights and remedies existing under this Agreement or the exhibits or schedules attached hereto are cumulative to, and not exclusive of, any rights or remedies otherwise available. 
  
 3.10. Amendment. No change or amendment shall be made to
this Agreement or the exhibits or schedules attached hereto except by an instrument in writing signed on behalf of each of the parties to such agreement. 
  

 -9- 

 3.11. Interpretation. The headings contained in this Agreement, in any exhibit or
schedule attached hereto and in the table of contents to this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. Any capitalized term used in any exhibit or schedule but not
otherwise defined therein, shall have the meaning assigned to such term in this Agreement. When a reference is made in this Agreement to an article, section, exhibit or schedule, such reference shall be to an article or section of, or an exhibit or
schedule to, this Agreement, unless otherwise indicated. 
  
 ARTICLE IV 
  
 DEFINITIONS 
  
 4.1. Action. “Action” means any demand,
action, suit, countersuit, arbitration, inquiry, proceeding or investigation by or before any Governmental Authority. 
  
 4.2. Ancillary Agreement. “Ancillary Agreement” has the meaning set forth in the Separation Agreement. 
  
 4.3. Assets. “Assets” means assets, properties
and rights (including goodwill), wherever located (including in the possession of vendors or other third parties or elsewhere), whether real, personal or mixed, tangible, intangible or contingent, in each case whether or not recorded or reflected or
required to be recorded or reflected on the books and records or financial statements of any Person. 
  
 4.4. Cypress Business. “Cypress Business” means any business of Cypress other than the SunPower Business. 

 
 4.5. Cypress Group. “Cypress Group”
has the meaning set forth in the Separation Agreement. 
  
 4.6. Cypress Indemnitees. “Cypress Indemnitees” means Cypress, each member of the Cypress Group and each of their respective directors, officers, employees, representatives, agents and attorneys.

  
 4.7. Dispute. “Dispute”
has the meaning set forth in the Separation Agreement. 
  
 4.8. Distribution. “Distribution” means a distribution of SunPower stock by Cypress to Cypress’s shareholders in a transaction intended to qualify as a tax-free distribution under Section 355 of
the Internal Revenue Code of 1986, as amended from time to time. 
  
 4.9. Environmental Conditions. “Environmental Conditions” means the presence in the environment, including the soil, groundwater, surface water or ambient air, of any Hazardous Material at a level which
exceeds any applicable standard or threshold under any Environmental Law or otherwise requires investigation or remediation (including, without limitation, investigation, study, health or risk assessment, monitoring, removal, treatment or transport)
under any applicable Environmental Laws. 
  

 -10- 

 4.10. Environmental Laws. “Environmental Laws” means all laws and
regulations of any Governmental Authority with jurisdiction that relate to the protection of the environment (including ambient air, surface water, ground water, land surface or subsurface strata) including laws and regulations relating to a
Hazardous Materials Release, or otherwise relating to the treatment, storage, disposal, transport or handling of Hazardous Materials, or to the exposure of any individual to a Hazardous Materials Release. 
  
 4.11. Governmental Authority. “Governmental
Authority” has the meaning set forth in the Separation Agreement. 
  
 4.12. Group. “Group” means the Cypress Group or SunPower Group. 
  
 4.13. Hazardous Materials. “Hazardous Materials” means chemicals, pollutants, contaminants, wastes, toxic substances,
radioactive and biological materials, hazardous substances, petroleum and petroleum products or any fraction thereof. 
  
 4.14. Hazardous Materials Release. “Hazardous Materials Release” means any release, spill, emission, leaking, pumping,
injection, deposit, disposal, discharge, dispersal, leaching or migration into the indoor or outdoor environment, including, without limitation, the movement of Hazardous Materials through ambient air, soil, surface water, groundwater, wetlands,
land or subsurface strata. 
  
 4.15. Indemnifying
Party. “Indemnifying Party” has the meaning set forth in Section 1.4(a) of this Agreement. 
  
 4.16. Indemnitee. “Indemnitee” has the meaning set forth in Section 1.4(a) of this Agreement. 

 
 4.17. Information. “Information” has
the meaning set forth in the Separation Agreement. 
  
 4.18.
Insurance Claim. “Insurance Claim” has the meaning set forth in Section 1.4(a) of this Agreement. 
  
 4.19. Insurance Policies. “Insurance Policies” means insurance policies pursuant to which a Person makes a true risk
transfer to an insurer. 
  
 4.20. Insurance
Proceeds. “Insurance Proceeds” means those monies received by an insured from an insurance carrier or paid by an insurance carrier on behalf of the insured from Insurance Policies. 
  
 4.21. IPO. “IPO” shall mean the closing
of SunPower’s first firm commitment underwritten public offering of SunPower’s Common Stock registered under the Securities Act. 
  
 4.22. IPO Liabilities. “IPO Liabilities” means any Liabilities relating to, arising out of or resulting from any
untrue statement or alleged untrue statement of a material fact or omission or alleged omission to state a material fact required to be stated therein or necessary to make the statements therein not misleading, with respect to information contained
in the IPO Registration 

  

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Statement or any preliminary, final or supplemental prospectus forming a part of a IPO Registration Statement. 
  
 4.23. IPO Registration Statement. “IPO
Registration Statement” means the registration statement on Form S-1 pursuant to the Securities Act of 1933, as amended, to be filed with the Securities and Exchange Commission registering the shares of Common Stock of SunPower to be
issued in the IPO, together with all amendments thereto. 
  
 4.24. Liabilities. “Liabilities” means all debts, liabilities, guarantees, assurances, commitments and obligations, whether fixed, contingent or absolute, asserted or unasserted, matured or unmatured,
liquidated or unliquidated, accrued or not accrued, known or unknown, due or to become due, whenever or however arising (including, without limitation, whether arising out of any Contract or tort based on negligence or strict liability) and whether
or not the same would be required by generally accepted principles and accounting policies to be reflected in financial statements or disclosed in the notes thereto. 
  
 4.25. Person. “Person” has the meaning set forth in the Separation Agreement.

  
 4.26.
Separation. “Separation” has the meaning set forth in the Recitals hereof. 
  
 4.27. Separation Agreement. “Separation Agreement” has the meaning set forth in the Recitals hereof. 
  
 4.28. Separation Date. “Separation Date”
has the meaning set forth in the Separation Agreement. 
  
 4.29. Subsidiary. “Subsidiary” has the meaning set forth in the Separation Agreement. 
  
 4.30. SunPower Business. “SunPower Business” means any business currently or in the future conducted by SunPower.

  
 4.31. SunPower Contingent
Liability. “SunPower Contingent Liability” means any Liability of a member of the Cypress Group or the SunPower Group that primarily relates to the SunPower Business, whenever arising, to any Person other than a member
of the Cypress Group or the SunPower Group, if and to the extent that (i) such Liability arises out of the events, acts or omissions occurring on or prior to the Separation Date and (ii) the existence or scope of the obligation of a member
of the Cypress Group or the SunPower Group as of the Separation Date with respect to such Liability was not acknowledged, fixed or determined in any material respect, due to a dispute or other uncertainty as of the Separation Date or as a result of
the failure of such Liability to have been discovered or asserted as of the Separation Date (it being understood that the existence of a litigation or other reserve with respect to any Liability shall not be sufficient for such Liability to be
considered acknowledged, fixed or determined). 
  
 4.32.
SunPower Employment Liabilities. “SunPower Employment Liabilities” means all employment-related Liabilities regarding SunPower employees, consultants and independent 

  

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contractors that arise out of facts, acts or omissions occurring on or after the Separation Date relating to, arising out of, or resulting from their
employment with SunPower. 
  
 4.33. SunPower
Facilities. “SunPower Facilities” means all of the real property and improvements thereon owned or occupied at any time by any member of the SunPower Group, including, without limitation that certain approximately
215,000 square foot manufacturing facility located in the Philippines leased by the SunPower Group as of the date hereof, but excluding the Texas Facility. 
  
 4.34. SunPower Group. “SunPower Group” has the meaning set forth in the Separation Agreement. 
  
 4.35. SunPower Indemnitees. “SunPower
Indemnitees” means SunPower, each member of the SunPower Group and each of their respective directors, officers and employees. 
  
 4.36. SunPower Liabilities. “SunPower Liabilities” means (without duplication) the following Liabilities, except as
otherwise provided for in any other Ancillary Agreement: 
  
 (i) All Liabilities arising from or related to Environmental Conditions (x) existing on, under, about or in the vicinity of any of the SunPower Facilities whether prior to or after the Separation Date,
(y) arising out of operations occurring at any time prior to or after the Separation Date at any of the SunPower Facilities or (z) arising out of operations conducted by or on behalf of SunPower at the Texas Facility; 
  
 (ii) all Liabilities reflected in the SunPower Balance
Sheet, subject to any discharge of such Liabilities subsequent to the date of the SunPower Balance Sheet; 
  
 (iii) all Liabilities of Cypress or its Subsidiaries that arise after the date of the SunPower Balance Sheet that, had such Liability
arisen before the date of the SunPower Balance Sheet, would have been reflected in the SunPower Balance Sheet in accordance with the same principles and accounting policies under which the SunPower Balance Sheet was prepared; 
  
 (iv) all Liabilities that are related primarily to the
SunPower Business at the Separation Date but are not reflected in the SunPower Balance Sheet due to mistake or unintentional omission; 
  
 (v) all SunPower Contingent Liabilities; 
  
 (vi) all SunPower Payables; 
  
 (vii) all SunPower Employment Liabilities; 
  
 (viii) all Liabilities whether arising before, on or after the Separation Date, primarily relating to, arising out of or resulting from:

  
 (1) the operation of the SunPower Business,
as conducted at any time prior to, on or after the Separation Date (including any Liability relating to, arising out of or 

  

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resulting from any act or failure to act by any director, officer, employee, agent or representative of Cypress or any Cypress Subsidiary, including SunPower
(whether or not such act or failure to act is or was within such Person’s authority)); 
  
 (2) the operation of any business conducted by any member of the SunPower Group at any time after the Separation Date (including any
Liability relating to, arising out of or resulting from any act or failure to act by any director, officer, employee, agent or representative of Cypress or any Cypress Subsidiary, including SunPower (whether or not such act or failure to act is or
was within such Person’s authority)); or 
  
 (ix) all Liabilities relating to, arising out of or resulting from any terminated, divested or discontinued businesses and operations of SunPower; and 
  

(x) all other Liabilities that are expressly contemplated by this Agreement, the Separation Agreement or any other Ancillary Agreement
(or the exhibits or schedules hereto or thereto) as Liabilities to be retained or assumed by SunPower or any member of the SunPower Group, and all agreements, obligations and Liabilities of any member of the SunPower Group under this Agreement or
any of the Ancillary Agreements. 
  
 4.37. SunPower
Payables. “SunPower Payables” means all accounts payable and other obligations of payment for goods or services purchased, leased or otherwise received by SunPower in the conduct of the SunPower Business that as of the
Separation Date are payable to a third Person by Cypress or any of Cypress’s Subsidiaries (including SunPower), whether past due, due or to become due, including any interest, sales or use taxes, finance charges, late or returned check charges
and other obligations of Cypress or any of Cypress’s Subsidiaries with respect thereto. 
  
 4.38. Tax Sharing Agreement. “Tax Sharing Agreement” means the Tax Sharing Agreement, attached as Exhibit D to the Separation Agreement. 
  
 4.39. Taxes. “Taxes” has the meaning set
forth in the Tax Sharing Agreement. 
  
 4.40. Texas
Facility. “Texas Facility” means the manufacturing facility operated by Cypress and located at 17 Cypress Boulevard, Round Rock, Texas 78664. 
  
 4.41. Third Party Claim. “Third Party Claim” has the meaning set forth in
Section 1.5(a) of this Agreement. 
  
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 IN WITNESS WHEREOF, the
parties have signed this Indemnification and Insurance Matters Agreement effective as of the date first set forth above. 
  

									
	CYPRESS SEMICONDUCTOR CORPORATION	 	 	 	SUNPOWER CORPORATION
					
	 By:
	 	 	 	 	 	 By:
	 	 
					
	 Name:
	 	 	 	 	 	 Name:
	 	 
					
	 Title:
	 	 	 	 	 	 Title:

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