Document:

ex10_34x12302012

EXHIBIT 10.34

THIRD AMENDMENT TO CREDIT SUPPORT AGREEMENT
This Third Amendment (this “Amendment”) to the Credit Support Agreement, dated as of April 28, 2011, as amended by that Amendment to Credit Support Agreement, dated as of June 7, 2011 and that Second Amendment to Credit Support Agreement, dated December 12, 2011 (as so amended and as further as amended, modified, supplemented, extended or restated from time to time, the “Credit Support Agreement”), by and between Total S.A., a société anonyme organized under the laws of the Republic of France (the “Guarantor”), and SunPower Corporation, a Delaware corporation (the “Company”), is made and entered into as of December  14, 2012 by and between the Guarantor and the Company. Capitalized terms used in this Amendment and not otherwise defined herein shall have the meanings given to them in the Credit Support Agreement.
WITNESSETH
WHEREAS, the Guarantor and the Company desire to amend certain terms of the Credit Support Agreement to support the Company's performance of construction services related to the CVSR Project.
NOW, THEREFORE, in consideration of the foregoing premises and the matters set forth herein, as well as other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged and accepted, and intending to be legally bound, the Guarantor and the Company hereby agree as follows:
1.Amendment to Credit Support Agreement.  Section 2(b)(iv) of the Credit Support Agreement is hereby amended and restated in its entirety to read as follows:

“(iv)    such Proposed Facility does not permit the issuance of L/Cs for any obligations of the Company or a Wholly-Owned Subsidiary other than (A) performance guarantees (for a period of up to two (2) years after completion of the applicable project) and completion guarantees (until completion of the applicable project) of the Company or such Wholly-Owned Subsidiary with respect to engineering, procurement and construction services provided in connection with the Company's UPP and LComm businesses (including replacing unguaranteed L/Cs in existence as of the Effective Date for such purposes with new L/Cs to be issued under such Proposed Facility), (B) performance guarantees for engineered hardware packages not including engineering, procurement and construction services for UPP projects for a period of up to two (2) years after completion of the applicable project, (C) the Other Permitted Purposes for a period of up to two (2) years, (D) certain purchase, repayment and tax indemnity obligations of the Company or a Wholly-Owned Subsidiary existing as of the Effective Date supported by no more than three (3) L/Cs (of which two (2) L/Cs in an aggregate face amount of €10,675,609 relate to the Montalto Project and one (1) L/C in a face amount of $40,000,000 relates to the NorSun Supply Agreement) (which existing L/Cs will be replaced by L/Cs issued pursuant to a Guaranteed Facility with an expiration date no later than the fifth anniversary of the Effective Date); and, (E) until January 15, 2015, letters of credit or demand guarantees that relate to the California Valley Solar Ranch project of the Company, issued pursuant to that certain Continuing Agreement for Standby Letters of Credit and Demand Guarantees, dated as of

1

September 27, 2011, by and among the Company, SunPower Corporation, Systems, Deutsche Bank AG New York Branch and Deutsche Bank Trust Company Americas in an aggregate face amount outstanding at any time not to exceed $224,359,381; provided, that, notwithstanding anything to the contrary in this Section 2(b)(iv), the Company will be permitted to have outstanding at any one time during the period described in Section 2(b)(iii) letters of credit for the purposes described in clauses (A) and (B) above with a period of between two (2) and three (3) years and for an aggregate initial face amount of up to fifteen per cent (15%) of the then-applicable Maximum L/C Amount;”
2.Agreement.  All references to the “Agreement” set forth in the Credit Support Agreement shall be deemed to be references to the Credit Support Agreement as amended by this Amendment.

3.Headings.  The headings set forth in this Amendment are for convenience of reference purposes only and shall not affect or be deemed to affect in any way the meaning or interpretation of this Amendment or any term or provision hereof.

4.Confirmation of the Credit Support Agreement.  Other than as expressly modified pursuant to this Amendment, all provisions of the Credit Support Agreement remain unmodified and in full force and effect. The applicable provisions of Section 10 of the Credit Support Agreement shall apply to this Amendment mutatis mutandis. 
 
[Execution page follows.]

2

EXHIBIT 10.34

IN WITNESS WHEREOF, the Borrower and the Guarantor have caused this Amendment to be executed by their respective duly authorized officers as of the date first written above.
	
				
	 	SUNPOWER CORPORATION,
as the Company

	 
	 
	 
	 
	 	By:
	/s/ Thomas H. Werner

	 	Name:
	Thomas H. Werner

	 	Title:
	Chief Executive Officer

	
				
	 	TOTAL S.A.,
as the Guarantor

	 
	 
	 
	 	By:
	/s/ Patrick de la Chevardière

	 	Name:
	Patrick de la Chevadière

	 	Title:
	Chief Financial Officer

[Signature Page to Third Amendment to Credit Support Agreement]ex10_54x12302012

EXHIBIT 10.54

SUNPOWER CORPORATION
EXECUTIVE QUARTERLY
KEY INITIATIVE BONUS PLAN
(Amended and Restated February 19, 2012)

		
	Article 1
	 - Executive KI Plan Objective

		
	1.1
	The objective of this Executive Quarterly Key Initiative Bonus Plan (“Executive KI Plan”) is to provide incentives to key employees of SunPower Corporation and its subsidiaries (collectively, the “Company”) based on the Company's profit before tax, quarterly company milestones and an individual's performance against set individual key initiatives (“KIs”).  The Executive KI Plan shall be administered by the Compensation Committee appointed by the Board of Directors of SunPower Corporation.

		
	Article 2
	 - Effective Date

		
	2.1
	This quarterly program will be effective as of January 1, 2013.  “Plan Periods” under the Executive KI Plan will correspond to the fiscal quarters of the Company.

 
		
	Article 3
	 - Eligibility for Executive KI Plan Participation

		
	3.1
	All executive officers of the Company, as well as any other key employees approved by the Compensation Committee of the Board of Directors, shall participate in the Executive KI Plan.  Participation will generally be limited to the CEO and executive direct reports.

 
		
	Article 4
	 - Target Bonus Percentages and Calculations

		
	4.1
	Executive KI Target Bonus Percentages.  Each Executive KI Plan participant will be allocated a KI target bonus expressed as a percentage of his or her base salary.  KI target bonus percentages are set by the Compensation Committee.  The Compensation Committee may, in its discretion, set maximum caps on the payout amount for KI bonuses.  The Compensation Committee may delegate establishing KI target bonus percentages to officers of the Company; provided that executive officer KI target bonus percentages must be approved by the Compensation Committee.

		
	4.2
	Executive KI Plan Components. 

 
		
	(i)
	Quarterly KI Score.  At the start of each quarter the participant will formulate with his or her supervisor a list of key initiatives for such quarter.  Each initiative will be allocated a certain number of points, and the quarterly scorecard shall total 100 points.  Following each quarter the participant's supervisor will score the participant's achievement of key initiatives (expressed as a percentage).

	
			
	 
	Page 1 of  5
	Company Confidential

		
	(ii)
	Company Milestone Score.  With respect to each quarter the Board of Directors will establish quarterly company milestones for such quarter.  Each company milestone will be allocated a certain number of points.  Following each quarter, the executive officers of the Company will score the achievement of company milestones (expressed as a percentage).

		
	(iii)
	PBT Score.  At the start of the quarter the executive officers will establish an internal profit before tax financial target for the Company (“Target PBT”), including minimum and maximum PBT levels for the quarter.  Following the quarter, the actual profit before tax will be determined (“Actual PBT”), including minimum and maximum PBT levels for the quarter.  Following the quarter, the actual profit before tax will be determined (“Actual PBT”). 

 
		
	4.3
	Quarterly bonuses under this Executive KI Plan are based on a combination of (a) the participant's number of points achieved on his or her key initiative scorecard for the quarter (expressed as a percentage), (b) the percentage of company milestones achieved for the quarter and (c) the Actual PBT for such quarter.  In particular, the bonus payout is calculated as follows: 

		
	(i)
	For each quarter: 

		
	a.
	If the company milestone score is equal to or less than 60%, no KI bonus will be calculated for the quarter.

		
	b.
	If the company milestone score is greater than 60% and equal to or less than 80%, KI bonus for the quarter will be multiplied by a factor of 50%.

		
	c.
	If the company milestone score is greater than 80%, KI bonus for the quarter will be multiplied by a factor of 100%.

		
	(ii)
	The PBT factor is calculated as follows:

		
	a.
	If the Actual PBT is less than minimum performance level, no KI bonus payout will be made for that quarter.  

		
	b.
	If the Actual PBT is equal to or greater than the minimum but less than the Target PBT, KI bonus will be paid if the milestone condition is met as set forth above. 

		
	c.
	If the Actual PBT is between the Target PBT and the maximum performance level, and the milestone condition is met as set forth above is met, KI bonus will be multiplied by an adjustment factor between 100% and 125%, based on a straight-line proration between target and the maximum achievement.  Note that adjustment factor will be above 100% only if Actual PBT result is greater than zero. 

For example, Actual PBT is between the minimum and Target PBT performance levels:
Company milestone score is greater than 80%:  if an individual has a $100,000 base salary, 20% KI target bonus and a KI score of 80%, he/she would receive a quarterly bonus of 100,000 x 1⁄4 x 20% x 80%.
Company milestone score is greater than 60% and equal to or less than 80%:  if an individual has a $100,000 base salary, 20% KI target 

	
			
	 
	Page 2 of  5
	Company Confidential

bonus and a KI score of 80%, he/she would receive a quarterly bonus of (100,000 x 1⁄4 x 20% x80%)x50%.
		
	d.
	When the quarterly KI bonus is prorated and paid above 100%, it is subject to a maximum cap of 125%.  The Board reserves the right to reduce payments above 100% of target, should the sum of payments above target for all eligible employees become a material portion of the Actual PBT achieved by the Company. 

		
	Article 5
	 - Effect of Base Salary on Target Bonus Adjustments.

		
	5.1
	Payout calculations under the Executive KI Plan will be based on the plan participant's base salary at the end of the quarter being measured.

		
	5.2
	In the event a participant's KI target bonus percentage is changed during the quarter, the participant's KI payout for the quarter shall be based on the KI target bonus in effect at the end of that quarter. 

		
	Article 6
	 - KI Achievement

		
	6.1
	KI attainment for the completed quarter and proposed KI for the next quarter are reviewed at the end of each quarter no later than the third Friday of the first month of the quarter.

		
	6.2
	In setting KIs, a 0% threshold may be defined for each KI.  This threshold, which could be timing and/or deliverable-based, is a point at which a KI score starts to be earned.  If a participant does not reach/complete the minimum threshold, such KI will be scored 0% (zero).  Progress beyond the threshold earns the participant a pro-rated score up to 110%.  The score for a particular KI item cannot exceed 110%.  Scoring greater than 100% for a KI item is usually limited to numeric or quantitative goals.

		
	6.3
	The Chief Executive Officer's quarterly KI score is the actual company milestone score for such quarter.

		
	Article 7
	- Eligibility for Payment

		
	7.1
	Employment:  To be eligible for any portion of the bonus payment, the participant must be employed by the Company at the scheduled payment date.  A participant who terminates employment prior to the payment date will be ineligible for any and all bonuses not yet paid, except as otherwise provided in this article or any separate agreement approved by the Compensation Committee.

		
	7.2
	New Hires:  New Hires shall be eligible to participate in the bonus program starting the first complete month of work, i.e. if they start the first business day of the month, they will be eligible to participate that month;  otherwise, they will begin participation the following month.

	
			
	 
	Page 3 of  5
	Company Confidential

		
	7.3
	Disability:  If a participant is unable to perform the essential functions of his or her job with or without a reasonable accommodation and is eligible to receive disability benefits under the standards used by the Company's disability benefit plan, the participant will receive a bonus calculated as follows: the quarter in which the disability begins will be considered a completed quarter and the KI bonus for that quarter will be paid as though KI attainment was 100%.  If/when the participant returns from disability leave, participation will be handled as outlined in section 7.2 above.

		
	7.4
	Retirement:  If a participant retires, i.e. permanent termination of employment with the Company in accordance with the Company's retirement policies, the participant will receive a bonus calculated as follows: the quarter in which the retirement begins will be considered a completed quarter and the KI bonus for that quarter will be paid as though KI attainment was 100%.  Thereafter, quarterly participation ceases.  

		
	7.5
	Death:  If a participant dies, awards will be paid to the beneficiary designated by the participant or, if no such designation has been made, to the persons entitled thereto as determined by a court of competent jurisdiction.  The bonus will be calculated as follows:  the quarter in which death occurred will be considered a completed quarter and the KI bonus for that quarter will be paid as though KI attainment was 100%.  Thereafter, quarterly participation ceases.

		
	7.6
	Lay-off:  If a participant is terminated by lay-off during a Plan Period, the quarter in which the lay-off occurred will be considered a completed quarter and the KI bonus for that quarter will be paid as though KI attainment was 100%.  Thereafter, quarterly participation ceases.  

		
	7.7
	No bonus will be paid to employees who are terminated for cause.

		
	7.8
	All qualified bonus payments including future scheduled payments pursuant to Sections 7.3, 7.4, 7.5, and 7.6 will be paid in a lump sum. 

		
	7.9
	The Chief Executive Officer reserves the right to reduce the bonus award of a participant on a pro-rata basis to reflect a participant's leave of absence during the applicable Plan Period.

		
	Article 8
	 - Miscellaneous

		
	8.1
	Unless as defined in article 8.4, no right or interest in this Executive KI Plan is transferable or assignable except by will or laws of descent and distribution.  

		
	8.2
	Participation in this Executive KI Plan does not guarantee any right to continued employment with the Company.

		
	8.3
	Participation in the Executive KI Plan in a particular Plan Period is not a guarantee to participate in subsequent Plan Periods.

	
			
	 
	Page 4 of  5
	Company Confidential

		
	8.4
	Management reserves the right to discontinue participation of any participant in this Executive KI Plan, at any time, and for whatever reasons.

		
	8.5
	This Executive KI Plan is unfunded and the Company does not intend to set up a sinking fund.  Consequently, payments arising out of bonus earned shall be paid out of the Company's general assets.  Accounts recognized by the Company for book purposes are not an indication of funds set aside for payment.  Executive KI Plan participants are considered as general creditors of the Company and the obligation of the Company is purely contractual and is not secured by any particular Company asset.

		
	8.6
	The provision of this Executive KI Plan shall not limit the ability of the Compensation Committee (or its designees) to modify said Executive KI Plan, or adopt such other plans on matters of compensation, bonus or incentive, which in its own judgment it deems proper, at any time.

	
			
	 
	Page 5 of  5
	Company Confidential

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00213-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00213-of-00352.parquet"}]]