Document:

Tax Sharing Agreement

 Exhibit 10.16 
  
 TAX SHARING AGREEMENT 
  
 This Tax Sharing Agreement (the “Agreement”) is made effective for federal taxable years beginning on the 9th day of November 2004, and for all state taxable years beginning on the 30th day of December 2002, by and between Cypress Semiconductor Corporation, a Delaware corporation (“Parent”) and its subsidiary SunPower Corporation, a
California corporation (the “Subsidiary”). 
  
 WHEREAS,
Parent is the parent of an affiliated group of corporations, as defined in Section 1504(a) of the Internal Revenue Code of 1986, as amended (the “Code”), of which the Subsidiary is a member; and 
  
 WHEREAS, Parent on behalf of its affiliated group, has filed for previous
taxable years consolidated federal income tax returns in accordance with Section 1501 of the Code and is required to file consolidated federal income tax returns for subsequent taxable years; and 
  
 WHEREAS, Parent is the parent of a unitary group of corporations, as defined
by state tax laws and regulations, of which Subsidiary is, or will be, a member; and 
  
 WHEREAS, Parent on behalf of its unitary group, has filed for previous taxable years combined state income tax returns in accordance with the laws and regulations of each state where Parent and Subsidiary conducts
business operations, and is required to or elects to file combined income tax returns for subsequent taxable years; and 
  
 WHEREAS, Subsidiary may form, merge or acquire a subsidiary corporation which will join the Parent’s affiliated group of corporations, as defined in
Section 1504(a) of the Code, or the Parent’s unitary group of corporations, as defined by state law. 
  
 WHEREAS, the parties wish to provide for the allocation among them of their consolidated federal income tax liability, combined state income tax
liability, and various other federal and state tax liabilities arising prior to, as a result of, and subsequent to a Deconsolidation, and to provide for and agree upon other matters relating to such Income Taxes 
  
 WHEREAS, the parties acknowledge that Parent has made continuous investment
in Subsidiary and thereby wish to allocate to Parent the tax benefit of all pre-Deconsolidation federal and state tax credit carryforward, net operating loss carryforward and any other tax carryforward amounts attributable to each Subsidiary under
federal or state law and regulations. 
  
 NOW, THEREFORE, in
consideration of the foregoing premises and of the mutual covenants and agreements contained herein, the parties agree as follows: 
  
 1. DEFINITIONS. 
  
 For purposes of this Agreement, the terms set forth below shall be defined as follows: 
  

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 (a) “Consolidated Return(s)” means any consolidated, combined or unitary Tax Returns filed by
Parent with respect to United States federal, state or local Taxes imposed or based on net income, net worth or gross receipts, or otherwise. 
  
 (b) “Deconsolidation” shall mean any event pursuant to which a Subsidiary ceases to be includible in a Parent Consolidated Return for federal or
state income tax purposes. 
  
 (c) “Distribution” shall
mean a distribution of Subsidiary stock by Parent to Parent’s shareholders in a transaction intended to qualify as a tax-free distribution under Section 355 of the Code. 
  
 (d) “Group” shall mean Parent (as hereinafter defined), the Subsidiary, and all other corporations
(whether now existing or hereafter formed or acquired) that have joined, or will join, with Parent in filing a Consolidated Return. 
  
 (e) “Group Tax Liability” shall mean the federal or state income tax liability of the Group reported on any Consolidated Return of the group
filed for the taxable year. 
  
 (f) “Member” shall mean
any corporation that is included in the Group, or any successor to such corporation. 
  
 (g) “Parent” shall mean (i) Parent, (ii) any successor common parent corporation described in Treas. Reg. §1.1502-75 (d) (2) (i) or (ii), or (iii) any corporation as to
which Parent (or successor corporation described in clause (ii) hereof) is the “predecessor” within the meaning of Treas. Reg. §1.1502-1 (f) (4), if such corporation acquires Parent (or a successor corporation described in
clause (ii) hereof) in a “reverse acquisition” within the meaning of Treas. Reg. §1.1502-75 (d) (3). 
  
 (h) “Separate Return Tax Liability” shall mean with respect to any taxable year the hypothetical federal or state income tax liability of
Subsidiary determined on a pro forma basis as if each Subsidiary had filed its own separate federal or state income tax return for such year (and for every taxable year prior thereto in which each Subsidiary was a Member) in accordance with the
rules set forth in Section 3 hereof. 
  
 (i)
“Subsidiary” means SunPower Corporation and any Sub-Subsidiary owned by SunPower Corporation. 
  
 (j) “Sub-Subsidiary” means any corporation, partnership or limited liability company owned directly by SunPower Corporation or any indirectly
owned company of SunPower Corporation, so long as the company is a Member as defined herein. 
  
 (k) “Tax(es)” means all federal, state, local and foreign income, profits, franchise, sales, use, occupation, property, severance, excise, payroll, withholding and any other taxes (including interest and
penalties thereon). 
  
 (l) “Tax Benefit Payable” means
the amount due Parent under Section 4 of this Agreement attributable to certain tax attributes (i.e., NOL carryforward, credit carryforward, etc.) 

  

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of each Subsidiary, under the Code or pursuant to State law or regulations, at the time of Deconsolidation , determined on a separate return basis and in
accordance with Section 4 hereof. 
  
 (l) “Tax
Returns” means all returns, reports and information statements (including all exhibits and schedules thereto) filed or required to be filed with a taxing authority with respect to any Taxes. 
  
 2. FILING OF RETURNS. 
  
 (a) Parent shall, on a timely basis, file or cause to be filed, Consolidated Returns and estimated tax returns for each
taxable year during the term of this Agreement and shall pay in full any tax shown as due thereon. Each Subsidiary shall execute and file such consents, elections, and other documents as may be required or appropriate for the proper filing of such
returns. Each Subsidiary shall also maintain such books and records, and continue to maintain such books and records for the duration of the applicable statute of limitation for each jurisdiction imposing such Taxes, and timely provide such
information as Parent may request in connection with the matters contemplated by this Agreement. 
  
 (b) Parent shall have the right, in its sole discretion, to: 
  

	 	(i)	Make any elections which are employed in the filing of such Consolidated Returns, including any elections denominated as such in the Code such as choice of methods of accounting and
depreciation; 

  

	 	(ii)	Determine the manner in which such returns shall be prepared and filed, including without limitation, the manner in which any item of income, gain, loss, deduction or credit shall
be reported; 

  

	 	(iii)	Contest, compromise or settle any adjustment or deficiency proposed, asserted or assessed as a result of any audit of any such returns; 

  

	 	(iv)	File, prosecute, compromise or settle any claim for refund; and 

  

	 	(v)	Determine whether any refunds to which the Group may be entitled shall be paid by way of refund or credit against the federal or state income tax liability of the Group.

  
 (c) Upon formation or acquisition of a
Sub-Subsidiary, Subsidiary shall cause such Sub-Subsidiary to execute and be bound by this Agreement as of the first date on which such Sub-Subsidiary qualifies under federal and/or state law to become a Member of the Group. The Group will jointly
file state and local tax returns on a combined, consolidated, unitary, or other method that Parent determines appropriate and beneficial for the Group. In the event any such state or local tax returns are filed, the provisions of the Agreement shall
apply to the allocation, preparation, filing and payment related to such state and local taxes and returns and shall be applied as is appropriate in the context of the applicable state and local tax laws as determined in the discretion of Parent.
The provisions of this Agreement also apply to any other Taxes of the Group. 
  

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 (d) Subsidiary shall designate Parent (and shall cause each Sub-Subsidiary to designate Parent) as its
agent and attorney-in-fact (and shall execute any powers of attorney) for the purpose of taking any and all actions necessary for the filing of the Consolidated Returns. Subsidiary will furnish (and cause each sub-Subsidiary to furnish) to Parent
all information that is reasonably requested in order to carry out the provisions of this Agreement and to determine the amount of the Separate Return Tax Liability. 
  
 3. SEPARATE RETURN TAX LIABILITY CALCULATION. 
  
 (a) Parent will calculate a Separate Return Tax Liability for each Subsidiary on or before the Tax Return filing due date
(including any extensions thereof) and shall notify Subsidiary in writing of such Separate Return Tax Liability within 15 days of filing each applicable Tax Return. 
  
 (b) The Separate Return Tax Liability will be calculated, in general, by the following process including any applicable
special rules as listed below: 
  

	 	(i)	Taxable net income, as defined by the Code and state laws and regulations, shall be determined by taking into account losses, credits, carryovers of losses and credits from prior or
subsequent years, and other tax attributes of each Subsidiary (determined without reference to the effect of the application of the Consolidated Return regulations on the Subsidiary’s attributes), all of which attributes are subject to the
limitations of the federal or state laws and regulations that would have been applicable had the Subsidiary filed a separate federal or state income tax return for all taxable years relating to the computation, 

  

	 	(ii)	Notwithstanding the foregoing subpart (i), any employee compensation deduction resulting from the exercise of Parent stock options (without regard to the treatment under the Code,
Treasury Regulations or state laws) shall be allocated as an exclusive deduction to Parent, and shall remain with Parent (and not with the Subsidiary) in calculating Subsidiary’s Separate Return Tax Liability for all taxable years under this
Agreement; 

  

	 	(iii)	Tax shall be imposed on the taxable net income of each Subsidiary at a rate equal to the top marginal rate specified by the Code or state law for the taxable year under each
applicable tax provision (including without limitation to taxes imposed under Sections 11, 55 and 1201 (a) of the Code) and employing the methods and principles of accounting, elections and conventions that are used by the Group; and

  
 (c) For purposes of determining the Separate
Return Tax Liability of each Subsidiary, the following special rules shall apply: 
  

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	 	(i.)	Any carryover of loss or credit that arose in a taxable year prior to the time in which each Subsidiary became a Member (and which has not been or will not be utilized prior to the
date of this Agreement) may be taken into account only to the extent of federal or state income tax benefit actually obtained, by the Group, as determined after full utilization of the Group’s other attributes; 

  

	 	(ii.)	Items of deduction or credit that are calculable only on a consolidated basis (for example, the manufacturing deduction of Section 199 of the Code) shall be determined on such
basis (and not on a separate return basis) and then equitably apportioned by Parent; and 

  

	 	(iii.)	Parent may from time to time establish any other special rules that Parent in its sole discretion deems necessary or appropriate to carry out the purposes of this Agreement.

  
 4. PAYMENTS. 
  
 For each taxable year of the Group with respect to which a Consolidated
Return is filed, Subsidiary shall make payments to Parent in the following manner: 
  
 (a) Subsidiary shall pay to Parent the total amount of Subsidiary’s (including each Sub-Subsidiary’s) Separate Return Tax Liability not later than thirty (30) days after the date on which the
Group’s Consolidated Return for Taxes is required to be filed (including any extensions thereof). 
  
 (b) Subsidiary shall pay to Parent, but not later than fifteen (15) days after the date each Subsidiary would be required to make payment of
estimated Taxes for Consolidated Returns if Subsidiary was to file a separate Tax Return for the taxable year (including any payment due at the time any extension of time for the filing of such hypothetical return is obtained), an amount, as
determined by Parent in a manner consistent with Section 3 hereof, equal to the periodic amount of Subsidiary’s Separate Return Tax Liability that would be due were each Subsidiary to file a separate Tax Return for the taxable year. Any
payments made by Subsidiary to Parent under this subparagraph (b) with respect to a taxable year shall be applied to reduce the amount, if any, owing by Subsidiary under subparagraph (a) of this paragraph 4 with respect to such year. Any
excess of such payments over the amount determined under subparagraph (a) of this paragraph 4 for such year shall be repaid by Parent to Subsidiary not later than forty-five (45) days after the date on which the Group’s Consolidated
Return is filed or, to the extent that such excess represents all or a part of a tax refund claimed by the Group, not later than forty-five (45) days after the receipt of such refund. 
  
 (c) The Tax Benefit Payable shall be calculated immediately prior to
Deconsolidation, and shall become an obligation of Subsidiary due to Parent. No portion of the Tax Benefit Payable will become payable to Parent until Subsidiary is entitled to utilize such portion on a tax return filed after Deconsolidation.
Subsidiary shall then distribute such portion to Parent in the form of Subsidiary stock or cash, at Subsidiary’s discretion, within thirty (30) days after the filing of such tax return. Subsidiary shall have an affirmative duty to notify
Parent 

  

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in advance that such portion is available for utilization. The Tax Benefit Payable shall be reduced by any such portion distributed to Parent. 
  
 (d) For purposes of this Agreement, the total amount of the Tax Benefit
Payable shall be calculated based on the sum of the following amounts: 
  

	 	(i)	the total carryforward amounts of any and all federal or state income tax credits (current and prior years, irrespective of when earned) attributable to Subsidiary (including each
Sub-Subsidiary) at time of Deconsolidation, and 

  

	 	(ii)	the effective corporate tax rate (34% federal and 6% state) multiplied by the respective sum of the total carryforward amounts of all net operating losses (current and prior year)
attributable to Subsidiary (including each Sub-Subsidiary) at time of Deconsolidation and the carryforward of all capital losses (current and prior year) and any other taxable income carryforward amount declared. 

  
 (e) Amounts attributable to a taxable year that includes the date of the
Deconsolidation shall be determined as if Subsidiary closed its books on such date. 
  
 In the event of a determination increasing the amount of any income tax credit carryforward, net operating loss carryforward, capital loss carryforward or any other taxable income carryforward amount attributable to
any Subsidiary for any period or portion thereof prior to Deconsolidation, the Tax Benefit Payable will be recalculated under subparts (i) and (ii) above and paid by Subsidiary to Parent as described in Section (c) of this Paragraph
4. 
  
 5. CHANGES IN TAX LIABILITY. 
  
 (a) If with respect to any taxable year 
  

	 	(i)	the Group files an amended Consolidated Return reporting a consolidated tax liability different from the Group Tax Liability, 

  

	 	(ii)	the Group Tax Liability or any Subsidiary’s tax liability is adjusted and such adjustment is a part of a final “determination” as the term is defined in section
1313(a) of the Code, or 

  

	 	(iii)	the Group is assessed and pays income taxes in excess of the Group Tax Liability by reason of any of the events specified in section 6213(b) or (d) of the Code,

  
 then the amounts of the payments required under
paragraph 4 shall be recomputed, subject to the limitations of subparagraph (c) of this paragraph 5, to give effect to such amended return, adjustment or assessment, as the case may be. Subsidiary shall then pay to Parent, or Parent shall then
pay to Subsidiary, as the case may be, any difference between the amounts determined by such 

  

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recomputation and the amounts previously paid. Such payments shall be made no later than 
  

	 	(i)	where an additional payment of tax by the Group is due as a result of such amended return, adjustment or assessment, the later of (a) fifteen (15) days after the date of
which such additional payment of tax is due and (b) fifteen (15) days after the date on which Parent notifies Subsidiaryof the amount of payment due from Subsidiary pursuant to this subparagraph (a); or 

  

	 	(ii)	where the Group receives a refund arising from such amended return or adjustment, forty-five (45) days after the receipt of such refund. 

  

	 	(iii)	where, after Deconsolidation and utilization by Subsidiary of a tax attribute taken into account in calculating the Tax Benefit Payable, an additional payment of tax by any
Subsidiary is due as a result of a final determination that such tax attribute is unavailable, (15) days after the date on which the Subsidiary notifies Parent of the amount of payment due from Parent pursuant to this subparagraph (a) and
(15) days after the date of which Subsidiary pays such additional amount due to the taxing jurisdiction. 

  
 (b) If with respect to any taxable year the Group files an amended Consolidated Return reporting a consolidated federal or state income tax liability
identical to the Group Tax Liability, then the amounts of the payments required under paragraph 4, subject to the limitations of subparagraph (c) of this paragraph 5, shall be recomputed to give effect to such amended return. Not later than
forty-five (45) days after the filing of such amended return, Subsidiary shall pay to Parent, or Parent shall pay to Subsidiary, as the case may be, any difference between the amounts determined by such recomputation and the amounts previously
paid. 
  
 (c) If with respect to any taxable year a Subsidiary
realizes a loss or credit that would be permitted under the Code (taking into account any election under section 172 (b) (3) of the Code) to be carried to one or more taxable years that precede such taxable year if such Subsidiary had
filed any applicable separate tax return for all such taxable years, then the amounts of the payments required under paragraph 4 for such taxable years shall be recomputed to give effect to such carryback; provided, however, that, notwithstanding
subparagraphs (a) and (b) of this paragraph 5, no such recomputation shall be made with respect to any loss or credit carried back to a taxable year beginning before the date hereof, or, if later, a taxable year in which a Subsidiary was
not a Member; provided, further, that no loss or credit that could be carried back to a taxable year beginning before the date hereof in which a Subsidiary was a Member shall be considered in determining each Subsidiary’s Separate Return Tax
Liability for any other year. Subsidiary shall pay to Parent, or Parent shall pay to Subsidiary, as the case may be, any difference between the amounts determined by such recomputation and the amounts previously paid not later than forty-five
(45) days after the date on which the Group’s Consolidated Return for the taxable year is filed, or to the extent that such difference represents all or part of a tax refund claimed by the Group, not later than forty-five (45) days
after the receipt of such refund. 
  

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 (d) The parties recognize that a recomputation under subparagraphs (a), (b) or (c) of this
paragraph 5 of the amounts of the payments required under paragraph 4 for any taxable year will not necessarily be the final determination of the amounts of such payments for such year, and the amounts of such payments may be recomputed more than
once. 
  
 (e) In the event that a change in the tax liability of
the Group arising from an amended return, adjustment or assessment described in subparagraph (a) of this paragraph 5 results or will result in the receipt of payment of interest, or the payment or recovery of penalties in excess of the
aggregate interest or penalties included in determining the aggregate Subsidiary Separate Return Tax Liability, such interest or penalties shall be allocated to each Subsidiary as follows: The total amount of such excess interest or penalty shall be
multiplied by a fraction, the denominator of which is the amount of the change in the Group Tax Liability on which the interest or penalty is computed, and the numerator of which is the amount of the change in each Subsidiary’s allocated tax
liability, in both cases with respect to the most recent prior computation of the Group Tax Liability and the Subsidiary’s Separate Return Tax Liability. Subsidiary shall pay to Parent, or Parent shall pay to Subsidiary, as the case may be, the
aggregate amount of excess interest or penalties allocated to each Subsidiary pursuant to this subparagraph 5(e) at the same time the amounts payable pursuant to subparagraph (a) of this paragraph 5 become payable. 
  
 (f) Except as provided in paragraph 7, payments made pursuant to
subparagraphs (a), (b), (c), (d) or (e) of this paragraph 5 shall not themselves bear interest. 
  
 (g) Notwithstanding the provisions of this paragraph 5, a Subsidiary (including any Sub-Subsidiary) shall not file an amended Consolidated Return or cause
an amended Consolidated Return to be filed without first obtaining the express written consent of the Parent. 
  
 6. INDEMNIFICATION. 
  
 (a) Subsidiary (including any Sub-Subsidiary) shall indemnify and hold harmless Parent against the amount of any and all liability, loss, expense or damage Parent may suffer or incur as a result of any or all claims, demands, costs or
expenses (including, without limitation, attorneys’ and accountants’ fees), interest, penalties or judgments made against it arising from or incurred in relation to 
  

	 	(i)	any failure of Subsidiary to pay any amount to Parent with respect to Subsidiary’s obligations under paragraphs 3, 4 and 5 of this Agreement, 

  

	 	(ii)	the failure of the Subsidiary to comply with its obligations under subparagraph (a) of paragraph 3 of this Agreement, 

  

	 	(iii)	any and all Taxes (other than Taxes in respect of Consolidated Returns) due or payable by Subsidiary for any taxable year or Tax period beginning before, on or after the date
hereof, 

  

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	 	(iv)	any Taxes resulting from the application of Section 355(e) of the Code or similar provision of other applicable law to the Distribution as a result of one or more acquisitions
of Subsidiary stock after the Distribution, except for any Taxes which would result taking into account only (A) issuances and dispositions of Subsidiary stock prior to the Distributions and (B) dispositions of Subsidiary stock by Parent
after the Distribution, and 

  

	 	(v)	any Taxes resulting from any action or failure to act by Subsidiary, or any condition known to Subsidiary to exist (and not known to Parent to exist), which action, failure to act
or condition causes any representation made in connection with the opinion provided to Parent regarding the qualification of the Distribution under Section 355 of the Code to be untrue. 

  
 (b) Parent shall: 
  

	 	(i)	Indemnify and hold harmless Subsidiary against the amount of any and all liability, loss, expense or damage Subsidiary may suffer or incur as a result of any or all claims, demands,
costs or expenses (including, without limitation, attorneys’ and accountants’ fees), interest, penalties or judgments made against it arising from or incurred in relation to all taxes in respect of all Consolidated Returns other than those
taxes for which Subsidiary is responsible under this Agreement, and 

  

	 	(ii)	Make any payment, remove any lien and take any action reasonably necessary to prevent Subsidiary from incurring such liabilities, losses, expenses or damages. Subsidiary shall not
be entitled to indemnification by Parent pursuant to this paragraph 6 unless such Subsidiary has made all payments required of it pursuant to paragraph 3, 4 and 5 of this Agreement and fully complied with subparagraph (a) of paragraph 4 of this
Agreement. 

  
 (c) Payment pursuant to the indemnity
provided in this paragraph 6 shall be made within fifteen (15) days of notice that a payment requiring indemnification under this paragraph 6 has been made by the Parent or the Subsidiary. 
  
 (d) Neither Subsidiary nor any Sub-Subsidiary shall knowingly take or fail to
take any action that could reasonably be expected to preclude Parent’s ability to undertake (as determined in its sole discretion) a Distribution. 
  
 7. DEFAULT INTEREST. 
  
 Where any payment required by this Agreement to be made from one party to another is not made within ten days of the time provided under this Agreement,
the amount not timely paid shall bear interest at the rate established pursuant to section 6621(a) (2) of the Code. 
  
 8. TERMINATION OF AFFILIATION. 
  
 The obligations of Parent and Subsidiary (including any Sub-Subsidiary) set forth under 

  

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this Agreement shall be unconditional and absolute, and shall remain in effect beyond Deconsolidation and without limitation as to time until all periods of
limitations, including any extension or waiver periods for returns covered under this Agreement, have expired and no further carrybacks to such periods are possible, and for 30 days thereafter. Furthermore, the rights and obligations of the Parties
under this Agreement may not be assigned by either Party without the prior written consent of the other Party to this Agreement. 
  
 9. RESOLUTION OF DISPUTES. 
  
 (a) Any dispute concerning the calculation or basis of the Separate Return Tax Liability for each Subsidiary or any Payment provided for in Section 4
of this Agreement shall be ultimately resolved (if necessary) by a law firm or accounting firm, selected jointly by Parent and Subsidiary, utilizing the allocation and payment rules and procedures as prescribed in this Agreement, and whose judgment
shall be conclusive and binding upon the parties in absence of manifest error. 
  
 (b) Fees and other expenses of such law or accounting firm shall be paid equally (50%) by Parent and Subsidiary. 
  
 (c) Any other dispute or ambiguity occurring under this Agreement shall be resolved by Parent in a reasonable manner and consistent with the principles
and procedure set forth in this Agreement. The judgment of Parent shall be conclusive and binding upon each of the parties to this Agreement. 
  
 10. INFORMATION AND EXPENSES. 
  
 Parent is authorized to retain accountants and attorneys for the purpose of preparing the Group’s Tax Returns provided for herein, and Subsidiary
agrees to pay all costs incurred by Subsidiary in furnishing records, documents or information in the form requested by Parent in connection with the preparation of any such returns. Subsidiary shall promptly provide Parent with such records,
documents and information, as Parent shall request in connection with the preparation of such returns. Parent shall be authorized to retain accountants and attorneys for the purpose of preparing any of the refund claims provided for herein, and for
representation in connection with any Subsidiary disputes with the IRS. In cases where the action taken is Subsidiary specific or where Subsidiary has agreed that the action taken is appropriate, Subsidiary agrees to pay the costs reasonably
allocated to it by Parent of employing such attorneys and accountants (including associated court costs), and to bear the costs incurred by it in furnishing records, documents and testimony in connection with any such matter. 
  
 11. MISCELLANEOUS PROVISIONS. 
  
 (a) This Agreement contains the entire understanding of the parties hereto
with respect to the subject matter contained herein and supercedes all prior written, oral or implied understandings, representations and agreements among the parties with respect thereto. No alteration, amendment, or modification of any of the
terms of this Agreement shall be valid unless made by an instrument signed in writing by an authorized officer of each party. 
  

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 (b) This Agreement shall be binding upon and inure to the benefit of each party hereto, its respective
successors and assigns, and each Member of the Group not a party hereto. 
  
 (c) This Agreement is not intended to benefit any person other than the parties hereto, each of their respective successors and assigns, and Members of the Group not a party hereto. No person not (i) a party,
(ii) a party’s successor or assign or (iii) a Member of the Group shall be a third party beneficiary hereof. 
  
 (d) This Agreement shall be governed by, interpreted and enforced in accordance with the laws of the State of California (regardless of the laws that
might be applicable under principles of conflicts of laws). 
  
 (e) This Agreement may be executed simultaneously in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 
  
 (f) The descriptive headings of the paragraphs of this Agreement are inserted
for convenience only and shall not constitute a part hereof. 
  
 (g) Any notice or other communication required or permitted under this Agreement shall be in writing and shall be personally delivered or sent by certified or registered United States mail postage prepaid, to the parties at the following
addresses (or at such other address as a party may specify by notice to the others): 
  

			
	 If to Parent:
 Company Name
	  	Cypress Semiconductor Corporation
	Street Address	  	3901 North First Street
	City, State Zip	  	San Jose, CA 95134
	Attention:	  	Brad Buss, Chief Financial Officer
		
	If to Subsidiary:	  	 
	Company Name	  	SunPower Corporation
	Street Address	  	430 Indio Way
	City, State, Zip	  	Sunnyvale, CA 94086
	Attention:	  	Emmanuel Hernandez, Chief Financial Officer

  
 Any such notice or
communication shall be effective and be deemed to have been given as of the dates delivered or mailed, as the case may be; provided that any notice or communication changing any of the addresses set forth above shall be effective and deemed to have
been given only upon its receipt. 
  
 (h) Where the context so
requires, the word “person” shall include a corporation, firm, partnership or other form of association or entity. 
  

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 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed on the date first
above written. 
  

									
	Cypress Semiconductor Corporation	 	 	 	SunPower Corporation
					
	By:	 	 	 	 	 	By:	 	 
	 	 	 	 	 	 	 	 	 

  

 - 12 -Master Transition Services Agreement

  
 Exhibit 10.17

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

  
 MASTER TRANSITION SERVICES
AGREEMENT 
  
 This Master Transition Services Agreement
(“Agreement”) is entered into as of October 6, 2005 (the “Effective Date”), between Cypress Semiconductor Corporation, a Delaware corporation (“Cypress”), and SunPower Corporation, a California
corporation (“SunPower”). Capitalized terms used herein and not otherwise defined shall have the meanings ascribed to such terms in Article I hereof. 
  
 RECITALS 
  
 WHEREAS, Cypress and SunPower entered into a Master Separation Agreement dated as of October 6, 2005, as may be amended from time to time (the
“Separation Agreement”) and other Ancillary Agreements to delineate and clarify their relationship and further separate the businesses conducted by Cypress and SunPower (the “Separation”). 
  
 WHEREAS, in connection with the Separation, the parties desire to set forth
certain agreements regarding transition services between the parties. 
  
 WHEREAS, this Agreement shall be void and of no force and effect until the occurrence of the “Separation Date” as defined in the Separation Agreement (hereinafter referred to as the “Effective Date”), 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 
  
 DEFINITIONS 
  
 For the purpose of this Agreement, the following capitalized terms shall have the following meanings: 
  
 1.1 Additional Services. “Additional Services” has the meaning set forth in Section 2.2(a) hereof.

  
 1.2 Agreement.
“Agreement” has the meaning set forth in Section 2.1 hereof. 
  
 1.3 Ancillary Agreements. “Ancillary Agreements” has the meaning set forth in the Separation Agreement. 
  
 1.4 Change of Control. “Change of Control” shall mean (a) such time as Cypress
ceases to own at least a majority of the aggregate number of shares of all classes of common stock then outstanding of SunPower; (b) the consummation of any purchase or acquisition by any person, entity or “group” (as defined 

 
under Section 13(d) of the Securities Exchange Act of 1934, as amended, and the rules and regulations thereunder) other than Cypress of more than a 40%
interest in the total outstanding voting securities or voting power thereof of SunPower, (c) any merger, consolidation, business combination or similar transaction involving SunPower pursuant to which the equity interests held in SunPower and
retained following such transaction or issued to or otherwise received in such transaction by the shareholders of SunPower immediately preceding such transaction constitute less than 50% of the aggregate equity interests in the surviving or
resulting entity of such transaction or any direct or indirect parent thereof, (d) any sale, lease (other than in the ordinary course of business), exchange, transfer, license (other than in the ordinary course of business), acquisition or
disposition of assets of SunPower representing more than 50% of the book value or fair market value of the assets of SunPower and its subsidiaries taken as a whole, or (e) any liquidation or dissolution of SunPower. 
  
 1.5 Cost. “Cost” means all direct and
indirect costs to Cypress to perform a Service under this Agreement, including, but not limited to, (1) all wages, salaries and fees of all personnel used to perform the Service; (2) all payroll charges for such personnel, such as
unemployment and social security taxes, workers’ compensation, health, accident and group insurance, and other so-called fringe benefits; (3) all costs of plant and office space, materials and supplies used to perform the Services;
(4) insurance costs incurred in connection with the Services; (5) the cost of equipment, software or hardware used in the performance of the Services; (6) the depreciation of any equipment or capital assets used in the performance of
the Services; (7) legal, accounting or other professional fees incurred in the ordinary course of business; (8) a portion of Cypress’s costs with respect to utilities, occupancy, supervisory and clerical compensation and the other
overhead burden of the department delivering the Service, which may include an allocation of costs incurred by supporting departments and other applicable general and administrative expenses to the extent reasonably allocable to the delivery of the
Service and (9) all other direct and indirect expenses, which Cypress in its reasonable business judgment, deems appropriate or necessary for the performance of the requested Service. 
  
 1.6 Expiration Date. “Expiration Date”
has the meaning set forth in the Section 3.1 hereof. 
  
 1.7 Impracticability. “Impracticability” has the meaning set forth in Section 2.4 hereof. 
  
 1.8 Master Transition Service Schedule. “Master Transition Service Schedule” has the meaning set forth in
Section 2.1 hereof. 
  
 1.9 Separation
Agreement. “Separation Agreement” has the meaning set forth in the Recitals hereof. 
  
 1.10 Separation Date. “Separation Date” has the meaning set forth in the Separation Agreement. 
  

 -2- 

 1.11 Subcontractor. “Subcontractor” means any individual,
partnership, corporation, firm, association, unincorporated organization, joint venture, trust or other entity engaged to perform hereunder. 
  
 ARTICLE II 
  
 SERVICES 
  
 2.1 Services Generally; Master Transition Service Schedule. This Agreement governs the provision of transitional services by Cypress to, and as requested by, SunPower. Each service shall be provided pursuant to, and
governed by, this Agreement (as defined below) and as described in further detail in the schedule of services that is attached hereto as Exhibit A and incorporated herein by reference (“Master Transition Service Schedule”). Each of
the services described in the Master Transition Service Schedule shall be referred to herein as a “Service,” and collectively (including Additional Services) as “Services.” This Agreement together with the Master
Transition Service Schedule shall be defined as the “Agreement”. 
  
 2.2 Additional Services.
  
 (a) From time to time after the Effective Date and during the term of this Agreement, the parties may identify additional services that one party shall provide to the other party in accordance with the terms of
this Agreement (the “Additional Services”), and in such case, the parties shall modify the Master Transition Service Schedule to provide for such Additional Services. 
  
 (b) Except as provided in the next sentence, Cypress shall be obligated to perform, at a charge to be
mutually agreed upon by the parties and subject to Section 4.1, any Additional Service that: (i) was provided by Cypress immediately prior to the Separation Date and that SunPower and Cypress agree was inadvertently or
unintentionally omitted from the Master Transition Service Schedule, or (ii) is essential to effectuate an orderly transition under the Separation Agreement. Notwithstanding the foregoing, if Cypress reasonably believes that the performance of
Additional Services set forth in subparagraphs (i) or (ii) would significantly disrupt its operations or materially increase the scope of its responsibilities under this Agreement, Cypress and SunPower shall negotiate in good faith to
establish terms under which Cypress would provide such Additional Services, but Cypress shall not be obligated to provide such Additional Services if, following good faith negotiation, it is unable to reach agreement on such terms. 
  
 2.3 Service Boundaries. Except as otherwise provided:

  
 (a) Cypress shall be obligated to
provide the Services only to the extent and only at the locations that such Services were provided by Cypress to SunPower immediately prior to the Effective Date; 
  

 -3- 

 (b) Cypress shall be obligated to provide the Services only to the extent
necessary to permit SunPower to conduct the business of SunPower substantially in the manner it was conducted prior to the Effective Date; 
  
 (c) Cypress shall not be obligated to hire any additional employees or to maintain the employment of any specific employee or
any specific number of employees in connection with this Agreement; 
  
 (d) Cypress shall not be obligated to purchase, lease or license any additional equipment, software or other asset or to maintain any existing lease, license or other contract; 
  
 (e) Cypress shall not be obligated to pay any
costs related to the transfer or conversion of SunPower’s data to Cypress or any alternate supplier of Services; 
  
 (f) Cypress shall not be obligated to perform any Service it believes in good faith results or could result in a conflict of
interest between the parties or a breach of contract or other obligation owed to a third party by Cypress; and 
  
 (g) Cypress shall not be obligated to perform any Service it believes would significantly disrupt its operations or materially
increase the scope of its responsibilities under this Agreement. 
  
 2.4 Impracticability. Cypress shall not be obligated to provide any Service to the extent the performance of such Service becomes or would become impracticable as a result of a cause or causes outside the control of
Cypress (including but not limited to a Force Majeure (as defined in Section 7.10) or unfeasible technological requirements), or to the extent the performance of such Services would require Cypress or SunPower to violate, or result in
Cypress’s or SunPower’s violation of, any applicable laws, rules or regulations or would result in Cypress’s or SunPower’s breach of any applicable contract or a real or potential conflict of interest between the parties hereto
(any such reason not to provide Services as a result of this section shall be referred herein to as by reason of “Impracticability”). 
  
 ARTICLE III 
  
 TERM; TERMINATION 
  
 3.1 Term. The term of this Agreement shall commence on the Effective Date and shall remain in effect until the earlier of three (3) years or until 90 days following a Change of Control
(provided that if at any time, as a result of such a Change of Control, more than 50% of the assets or equity interests of SunPower are beneficially owned by a single person, entity or “group” (as defined under Section 13(d) of the
Securities Exchange Act of 1934, as amended, and the rules and regulations thereunder) other than Cypress then this Agreement shall, at the option of Cypress, terminate immediately prior to such Change of Control) (the “Expiration
Date”), unless earlier terminated pursuant to this Article III. During the 90 day period prior to the Expiration Date, at the 

  

 -4- 

 
reasonable request of SunPower, Cypress will use commercially reasonable efforts to make the Cypress personnel who performed services hereunder available for
the purpose of training SunPower personnel who will, following the Expiration Date, perform such services for SunPower; provided, that SunPower shall pay Cypress charges determined in accordance with the Master Transition Service Schedule and
Section 4.1 hereof for such training. This Agreement may be extended by the parties in writing, either in whole or with respect to one or more of the Services. The parties may agree on an earlier expiration date respecting a Service by
specifying such date on the Master Transition Service Schedule for that Service. 
  
 3.2 Termination. SunPower may terminate this Agreement, either with respect to all or with respect to any one or more of the Services, for any reason or for no reason, at any time upon ninety
(90) days prior written notice to Cypress. In addition, either party may terminate this Agreement, in whole or with respect to a specific Service, if (a) the other party breaches a material provision and does not cure such breach (or does
not take reasonable steps required under the circumstances to cure such breach going forward) within thirty (30) days after being given notice of the breach or (2) either party may terminate or suspend this Agreement immediately and
without liability if the other party (a) files a voluntary petition in bankruptcy or otherwise seeks protection under any law for the protection of debtors; (b) a proceeding is instituted against the other party under any provision of any
bankruptcy laws which is not dismissed within ninety (90) days; (c) the other party is adjudged bankrupt; (d) a court assumes jurisdiction of all or a substantial portion of the assets of the other party under a reorganization law;
(e) a trustee or receiver is appointed by a court for all or a substantial portion of the assets of the other party; (f) the other party becomes insolvent or ceases or suspends all or substantially all of its business; or (g) the
other party makes an assignment of the majority of its assets for the benefit of creditors. 
  
 Termination under this Section 3.2 shall not relieve SunPower of its obligation to pay in full any charges for Services that have been incurred up to the date of termination of this Agreement. 
  
 3.3 Survival. Those Sections of this Agreement that, by
their nature, are intended to survive termination will survive in accordance with their terms. Notwithstanding the foregoing, in the event of any termination with respect to one or more, but less than all Services, this Agreement shall continue in
full force and effect with respect to any Services not terminated hereby. 
  
 ARTICLE IV 
  
 COMPENSATION 
  
 4.1 Charges for
Services. SunPower shall pay Cypress the charges, if any, set forth on the Master Transition Service Schedule for each of the Services listed therein, as adjusted from time to time in accordance with the processes and procedures
established under Section 4.4 hereof. However, if the term of this Agreement is extended beyond the Expiration Date with respect to any Service or if there is any material change in the fundamental assumptions used by the Parties in
originally determining the costs to be charged, SunPower shall pay Cypress adjusted charges that are determined in a manner consistent with such changed assumptions. The parties shall use good faith 

  

 -5- 

 
efforts to discuss any situation in which the actual charge for a Service is reasonably expected to exceed the estimated charge, if any, set forth on the
Master Transition Service Schedule for a particular Service; provided, however, that the incurrence of charges in excess of any such estimate on the Master Transition Service Schedule shall not relieve SunPower of its obligation to pay
Cypress or justify stopping the provision of, or payment for, Services under this Agreement. 
  
 4.2 Payment Terms. Cypress shall bill SunPower quarterly for all charges incurred under this Agreement during the immediately preceding quarter. SunPower shall pay such charges within fifteen
(15) days after receipt of an invoice therefor. Late payments shall bear interest at the lesser of 10% per year or the highest interest rate permitted by applicable law. 
  
 4.3 Performance Under Ancillary Agreements. Notwithstanding anything to the contrary contained herein,
SunPower shall not be charged under this Agreement for any obligations that are specifically required to be performed under the Separation Agreement or any other Ancillary Agreement, and any such other obligations shall be performed and charged for
(if applicable) in accordance with the terms of the Separation Agreement or such other Ancillary Agreement. 
  
 4.4 Pricing Adjustments.
  
 (a) The parties shall agree on a process and procedure for conducting internal audits and making adjustments to charges as a result
of the transfer of employees and functions between parties, the discovery of errors or omissions in charges and the true-up of amounts owed to either party. 
  
 (b) In the event of a tax audit adjustment relating to the pricing of any or all Services provided pursuant to this Agreement in
which it is determined by a taxing authority that any of the charges, individually or in combination, did not result in an arms-length payment, then the parties may agree to make corresponding adjustments to the charges in question for such period
to the extent necessary to achieve arms-length pricing. Any adjustment made pursuant to this Section 4.4 at any time during the term of this Agreement or after termination of this Agreement shall be reflected in the parties’ legal
books and records, and the resulting underpayment or overpayment shall create, respectively, an obligation to be paid in the manner specified in Section 4.2. 
  
 ARTICLE V 
  
 GENERAL OBLIGATIONS; STANDARD OF CARE 
  
 5.1 Cypress Performance Metrics. Subject to Section 2.3 and Section 2.4 and any other terms and conditions of
this Agreement, Cypress shall maintain sufficient resources to perform its obligations hereunder. Cypress will comply with the same specific performance metrics for a Service that it uses for its own operations regarding services that are comparable
to each Service. Where Cypress does not use similar services for its own operations, Cypress shall use commercially reasonable efforts to provide Services in accordance with the policies, procedures and practices in 

  

 -6- 

 
effect immediately prior to the Effective Date and shall exercise the same care and skill as it exercises in performing similar services for itself.

  
 5.2 SunPower Performance Metrics.
Specific performance metrics for SunPower for a Service may be agreed upon by the Parties. Where none is so specifically agreed, SunPower shall use commercially reasonable efforts, in connection with receiving Services, to follow the policies,
procedures and practices in effect immediately prior to the Effective Date, including providing information and documentation sufficient for Cypress to perform the Services as they were performed immediately prior to the Effective Date and making
available, as reasonably requested by Cypress, sufficient resources, access to SunPower employees and timely decisions, approvals and acceptances in order that Cypress may perform its obligations hereunder in a timely manner. SunPower shall at all
times remain primarily responsible for compliance with all applicable law with respect to any Service performed by Cypress. 
  
 5.3 Transitional Nature of Services; Changes. The parties acknowledge the transitional nature of the Services and that Cypress, in
its sole discretion, may make changes from time to time in the manner of performing the Services. Cypress will use its best efforts to promptly notify SunPower of any material changes in the manner of performing the Services. 
  
 5.4 Responsibility for Errors; Delays. Cypress’s
sole responsibility to SunPower for errors or omissions committed by Cypress in performing the Services shall be to correct such errors or omissions in the Services; provided, however, that SunPower must promptly advise Cypress of any such
error or omission of which it becomes aware after having used reasonable efforts to detect any such errors or omissions in accordance with the standard of care set forth in Section 5.1. 
  
 5.5 Good Faith Cooperation; Consents. The parties shall
use good faith efforts to cooperate with each other in all matters relating to the provision and receipt of Services. Such cooperation shall include exchanging information, performing true-ups and adjustments, and obtaining all third-party consents,
licenses, sublicenses or approvals necessary to permit each party to perform its obligations hereunder (including by way of example, not by way of limitation, rights to use third-party software needed for the performance of Services). The costs of
obtaining such third-party consents, licenses, sublicenses or approvals shall be borne by SunPower. Each party shall maintain, in accordance with its standard document retention procedures, documentation supporting the information relevant to cost
calculations performed to determine the charges for the Services set forth in the Master Transition Service Schedule and cooperate with the other party in making such information available as needed. 
  
 5.6 Alternatives. If Cypress reasonably believes it is
unable to provide any Service because of a failure to obtain necessary consents, licenses, sublicenses or approvals or because of Impracticability, the parties shall cooperate to determine the best alternative approach. Until such alternative
approach is agreed upon by the parties or the problem is otherwise resolved to the satisfaction of the parties, Cypress shall use reasonable efforts, subject to Section 2.3 and Section 2.4, to continue providing the Service.
SunPower shall be solely responsible for the cost of any agreed upon alternative approach. 
  

 -7- 

 5.7 Confidentiality. For the avoidance of doubt, the provisions of Section 3.6
of the Separation Agreement shall govern the confidentiality restrictions applicable to information that is subject to this Agreement. 
  
 5.8 Relationship Between the Parties. The relationship between the parties established under this Agreement is that of independent
contractors, and neither party is an employee, agent, partner, or joint venturer of or with the other. Nothing contained in this Agreement shall be construed to give either party the power to direct and control the day-to-day activities of the
other. All financial and other obligations associated with SunPower’s business are the sole responsibility of SunPower. 
  
 Cypress shall be solely responsible for any employment-related taxes, insurance premiums or other employment benefits respecting Cypress’s
personnel’s performance of Services under this Agreement. SunPower agrees to grant Cypress personnel access to sites, systems, employees and information (subject to the provisions of confidentiality in Section 5.7 hereof) as
necessary for Cypress to perform its obligations hereunder. Cypress shall use all commercially reasonable efforts to cause its personnel to obey any and all security regulations and other published policies of SunPower. 
  
 5.9 Subcontractor. Cypress may engage a Subcontractor to
perform all or any portion of Cypress’s duties under this Agreement; provided, however, that any such Subcontractor agrees in writing to be bound by the confidentiality obligations of Section 5.7; and provided further,
that Cypress remains responsible for the performance of such Subcontractor. The cost of any Subcontractor engaged by Cypress shall be the sole responsibility of SunPower. Cypress shall notify SunPower if the costs incurred for the engagement of
any Subcontractor exceed $25,000 in any calendar year. 
  
 ARTICLE VI 
  
 INDEMNIFICATION, WARRANTY AND
LIMITATION OF LIABILITY 
  
 6.1
Indemnification. SunPower shall indemnify and hold harmless Cypress, its successors and Affiliates, and their respective officers, directors, employees, and agents from and against all claims, liabilities, obligations, suits, causes
of action, or expenses (including reasonable attorney’s fees) (collectively “Claims”) resulting, directly or indirectly, from or in connection with any act or omission of Cypress done at the direction of SunPower; SunPower’s use,
interpretation or communication of advice, results or information provided to SunPower by Cypress; any failure by SunPower to comply with applicable law with respect to any Service provided by Cypress; or any act or omission of SunPower in
connection with the Services. Disputes, controversies and claims hereunder shall be subject to the terms of Section 3.3 of the Separation Agreement and, as applicable, Section 1.5, Section 1.6 and Article II of the Indemnification and
Insurance Matters Agreement attached as Exhibit A to the Separation Agreement. 
  

 -8- 

 6.2 Disclaimer of Warranties. CYPRESS MAKES NO WARRANTIES, EXPRESS, IMPLIED OR
STATUTORY, INCLUDING BUT NOT LIMITED TO THE IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, WITH RESPECT TO THE SERVICES, INCLUDING ANY ADVICE, INFORMATION OR RESULTS PROVIDED IN CONNECTION THEREWITH, OR OTHER DELIVERABLES
PROVIDED BY CYPRESS OR ITS PERSONNEL HEREUNDER. ALL SERVICES, INCLUDING ANY ADVICE, INFORMATION OR RESULTS PROVIDED IN CONNECTION THEREWITH, OR ANY OTHER DELIVERABLE PROVIDED BY CYPRESS OR ITS PERSONNEL ARE PROVIDED “AS-IS”, SUBJECT TO
OBLIGATIONS SET FORTH IN THIS AGREEMENT, AND CYPRESS MAKES NO WARRANTY AS TO THEIR ACCURACY, APPLICABILITY OR COMPLETENESS. 
  
 6.3 Limitation of Liability. IN NO EVENT SHALL CYPRESS BE LIABLE TO SUNPOWER FOR ANY ACTUAL, DIRECT, 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 OR CYPRESS’S PERFORMANCE OF THE SERVICES, 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 SET FORTH IN THE INDEMNIFICATION AND INSURANCE MATTERS AGREEMENT. 
  
 ARTICLE VII 
  
 MISCELLANEOUS 
  
 7.1 Entire Agreement. This Agreement, the Separation
Agreement and 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. 
  
 7.2 Governing Law. This Agreement shall be construed in accordance with, and 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 any claims the parties that are permitted to be
brought in a court of law pursuant to Section 8.4 below. 
  
 7.3 Notices. Any notice or communication given under the terms of this Agreement shall be in writing and shall be delivered in person, sent by any public or private express delivery service, signature required, or
deposited with the United States Postal Service or equivalent local or successor agency, certified or registered mail, return receipt requested, postage pre-paid, addressed as set forth below, or at such other address as a party may from time to
time designate by notice under this Article VII. Notice given by personal delivery or by public or private express delivery service shall be effective 

  

 -9- 

 
upon delivery, notice sent by mail shall be deemed to have occurred upon deposit of the notice in the United States mail. The inability to deliver a notice
because of a changed address of which no notice was given or a rejection or other refusal to accept any notice shall be deemed to be the receipt of the notice as of the date of such inability to deliver or rejection or refusal to accept. Any notice
to be given by Cypress may be given by the legal counsel and/or the authorized agent of Cypress. 
  

			
	If to SunPower:	  	SunPower Corporation
	 	  	430 Indio Way
	 	  	Sunnyvale, CA 94085
	 	  	Attn: Emmanuel Hernandez, CFO
		
	If to Cypress:	  	Cypress Semiconductor Corporation
	 	  	198 Champion Court
	 	  	San Jose, CA 95134
	 	  	Attn: Brad Buss, CFO

  
 7.4
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. 
  
 7.5 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. 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. 
  
 7.6 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 any 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. 
  
 7.7 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 

  

 -10- 

 
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. 
  
 7.8 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. 
  
 7.9 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. 
  
 7.10 Force Majeure. Each party
shall be excused for any failure or delay in performing any of its obligations under this Agreement, other than the obligations of SunPower to make certain payments to Cypress pursuant to Article IV hereof for Services rendered, if such
failure or delay is caused by any act of God or public enemy, any accident, explosion, fire, storm, earthquake, flood, or any other circumstance or event beyond the reasonable control of the party relying upon such circumstance or event (“Force
Majeure”). 
  

 -11- 

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

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

  
 [SIGNATURE PAGE TO TRANSITION SERVICES AGREEMENT] 

  
 EXHIBIT A 
  
 MASTER TRANSITION SERVICE SCHEDULE 
  
 Financial Services 
  
 Cypress shall provide the following financial and corporate accounting services
(“Financial Services”) as requested by SunPower on the following terms and conditions: 
  

	 	1.	Tax, Treasury and Corporate Finance & Accounting Services: SunPower shall have access to, be permitted to consult with and request services from Cypress personnel in
each of the Cypress Tax, Treasury, Corporate Finance and Accounting Departments. Cypress makes no guarantee of the availability of such personnel or the response time for requests made of such personnel. Such personnel shall have the ability to
prioritize any SunPower request in light of their current workload. Such personnel shall have complete discretion to decline at any time any SunPower request that results, or may result, in a professional, ethical or personal conflict of interest.

  

	 	2.	Business Insurance: SunPower shall be permitted to remain on Cypress insurance policies, including, but not limited to Cypress’s general liability, property, casualty,
flood and fire and automobile, but specifically excluding Cypress’s D&O policy, under the following conditions: (1) Cypress’s insurance carriers continue to permit SunPower to remain on Cypress policies, (2) no Change of
Control occurs, (3) SunPower does not cause, directly or indirectly (e.g. due to claim activity), an increase in Cypress’s premiums on such policies, and (4) the benefit described herein does not cause a real or potential conflict of
interest or hardship for Cypress. Cypress shall, in its sole discretion, determine whether or not the above conditions are being met at any time. In the event of an increase in Cypress’s premiums, SunPower shall be solely responsible for any
increase in Cypress’s premiums that are a direct or indirect result of SunPower’s business or claim activity. 

  
 In the event one of the conditions set forth above triggers removal of SunPower from Cypress’s insurance policies, Cypress will provide prompt notice
of such fact. 
  

	 	3.	Stock Option Administration. At no time shall Cypress be responsible for or provide services related to the administration of SunPower’s stock option programs, except
that Cypress will process any Cypress stock option grants held by SunPower employees as of the Effective Date. 

  

	 	4.	 Charge: SunPower will be charged quarterly for Financial Services used in the preceding fiscal quarter. The charge to SunPower for Financial Services will be
an allocation of each Department’s Costs which will be based on SunPower’s level of 

  

 -2- 

	 	 
usage, which shall be reviewed with SunPower for adjustment quarterly, plus any identifiable incremental costs (e.g., cost of Subcontractor that is engaged
specifically for a SunPower project). 

  
 IT Services

  
 Cypress shall provide the following Information Technology Services
(“IT Services”) as requested by SunPower on the following terms and conditions: 
  

	 	1.	Initial Set-up Consultation: SunPower shall have reasonable access to Cypress’s Information Technology personnel (“IT Personnel”) who can assist SunPower in
identifying the requirements to set-up the following Cypress Information Technology programs and services (“CY IT Programs”) for SunPower’s independent use: 

  

	 	•	 	ECN system, including the PTO system 

  

	 	•	 	Bridge codes 

  

	 	•	 	Document Management System, including Memo/Spec Logs 

  

	 	•	 	Peoplesoft 

  

	 	2.	Security: Cypress shall be under no obligation to provide access to the CY IT Programs if they cannot be provided on a secure basis (which shall be determined in
Cypress’s sole discretion), such that SunPower shall not have access to Cypress databases or other internal information, or if Cypress is not permitted by contract to provide such CY IT Programs to SunPower. 

  

	 	3.	CY IT Programs: In the event the CY IT Programs can be adapted for SunPower’s independent, secure use and SunPower and Cypress have agreed on the charge SunPower will
pay Cypress to set-up and maintain SunPower’s use of the CY IT Programs, Cypress shall make such CY IT Programs available to SunPower along with access to any IT personnel required to maintain such programs. 

  

	 	4.	Personnel: SunPower shall have access to, be permitted to consult with and request services from IT Personnel. Cypress makes no guarantee of the availability of such IT
personnel or the response time for requests made to such personnel. IT personnel shall have the ability to prioritize any SunPower request in light of their current workload. 

  

	 	5.	Reliability: Cypress shall not be liable any damages to SunPower for any downtime, planned or not, or any other interruption of any IT Service provided to SunPower.

  

	 	6.	 Charge: SunPower shall be solely responsible for any and all costs or expenses required to set-up or maintain the CY IT Programs for SunPower’s use. IT
Services 

  

 -3- 

	 	 
shall be charged on a per project basis. Accordingly, SunPower shall, in advance of any work being initiated by IT personnel, negotiate with the appropriate
Cypress representative, to be identified by Cypress’s Chief Financial Officer, the charge for any requested IT Service. 

  
 HR Services 
  
 Cypress shall provide the following human resources services (“HR Services”) as requested by SunPower on the following terms and conditions: 
  

	 	1.	Personnel: SunPower shall have access to, be permitted to consult with and request services from Cypress human resources and payroll personnel (“HR Personnel”).
SunPower shall also have access to HR resources it currently utilizes, including access to Cypress’s online recruiting service. Cypress makes no guarantee of the availability of HR Personnel or the response time for requests made to HR
Personnel. HR Personnel shall have the ability to prioritize any SunPower request in light of their current workload. HR Personnel shall have complete discretion to decline at any time any SunPower request that results, or may result, in a
professional, ethical or personal conflict of interest. 

  

	 	2.	Payroll Services: Cypress shall perform payroll services, including, but not limited to, paycheck/bonus processing, W-2 administration, tax withholding and filings and the
like, upon request of SunPower. SunPower shall be permitted to access, consult with and make requests for assistance from Cypress Payroll personnel. Cypress makes no guarantee of the availability of such personnel or the response time for requests
made to such personnel. Such personnel shall have the ability to prioritize any SunPower request in light of their current workload. 

  

	 	3.	Employee Benefit Plans: Subject to the Employee Matters Agreement between Cypress and SunPower of even date herewith (“Benefit Plan Agreement”), HR Personnel shall
administer and maintain the employee benefit plans more fully described in the Benefit Plan Agreement, for the benefit of SunPower and its employees until such time as SunPower and its employees are not longer participants such plan(s).

  
 (a) Employee Benefit Plans Charge:
SunPower and Cypress shall negotiate a flat fee for SunPower’s share of the administrative costs associated with the operation and maintenance of Cypress’s employee benefit plans as more fully described in the Benefit Plan Agreement.

  

	 	4.	 Employee Communication: Unless specifically directed by SunPower, Cypress shall not be responsible for communicating any information to SunPower employees or
ensuring the accuracy of any communication made by SunPower to its employees. 

  

 -4- 

	 	 
Cypress shall under no circumstance be responsible for any commitment or Service promised to SunPower employees by SunPower. 

  

	 	5.	Transition Services: SunPower may consult with and request assistance from HR Personnel in connection with SunPower’s efforts to establish its own health and welfare
benefit plans as more fully described in the Benefit Plan Agreement. 

  
 (a) Transition Services Charge: SunPower shall be solely responsible for any and all costs or expenses required to set-up its own health and welfare plans. To the extent that HR Personnel are asked to assist in
the process, SunPower shall, in advance of any work being initiated by HR personnel, negotiate with the appropriate Cypress representative, to be identified by Cypress’s Chief Financial Officer, the charge for such a project. 
  

	 	6.	Cypress University (“CYU”): SunPower shall have access to existing and future CYU programs and the Cypress personnel who are responsible for conducting the CYU
Program. SunPower will also have the ability to request development of a new CYU course. , the cost of which shall be borne directly and solely by SunPower. 

  
 (a) CYU Charge: SunPower shall negotiate, in advance of any work being initiated by CYU Personnel, the charge to be
paid by SunPower for the development of a new course. For all other CYU services, SunPower will be billed a percentage of the CYU department’s internal costs based on their usage of CYU courses, tools and other resources which will be tracked
electronically via the CYU system. 
  

	 	7.	Significant Projects: SunPower may from time to time request assistance from HR Personnel for a long-term, significant or complex HR project or initiative, the scope of which
is beyond the day-to-day HR Services currently used by SunPower (“Significant HR Project”). HR Personnel shall have the discretion to accept or reject such projects. 

  
 (a) Significant Project Charge: In the event HR Personnel accept a
“Significant HR Project”, SunPower shall negotiate, in advance of any work being initiated by HR Personnel, the charge for such Significant HR Project. 
  

	 	8.	Charge: Except where specifically address above, SunPower will be charged quarterly for HR Services used in the preceding fiscal quarter. The charge to SunPower for HR
Services performed by Cypress will be an allocation of the HR Department’s Costs based on SunPower’s level of usage, which shall be reviewed for adjustment quarterly, plus any identifiable incremental costs (e.g., cost of Subcontractor
that is engaged specifically for a SunPower project). 

  

 -5- 

  
 Legal Services 
  
 Cypress shall provide the following “Legal Services” as requested by SunPower on
the following terms and conditions: 
  

	 	1.	Personnel: SunPower shall be permitted to access, consult with and make requests for assistance from Cypress Legal Department personnel. Cypress makes no guarantee of the
availability of such personnel or the response time for requests made to such personnel. Such personnel shall have the ability to prioritize any SunPower request in light of their current workload. 

  

	 	2.	Significant Projects: SunPower may from time to time request assistance from HR Personnel for a long-term, significant or complex HR project or initiative, the scope of which
is beyond the day-to-day HR Services currently used by SunPower (“Significant HR Project”). HR Personnel shall have the discretion to accept or reject such projects. 

  
 (a) Significant Project Charge: In the event HR Personnel accept a
“Significant HR Project”, SunPower shall negotiate, in advance of any work being initiated by HR Personnel, the charge for such Significant HR Project. 
  

	 	3.	Conflict of Interest: Cypress’s Legal Department shall have complete discretion to decline at any time any SunPower request that results, or may result, in a
professional, ethical or personal conflict of interest. Under no circumstance will the Legal Department be under any obligation to respond to or accept a SunPower request for Services that results, or could result, in a real or potential conflict of
interest between the Legal Department’s representation of Cypress and SunPower. 

  

	 	4.	Charge: SunPower will be allocated a portion of the Cypress Legal Department’s Costs based on SunPower’s percentage of use of the Legal Department’s overall
time in any given calendar month. SunPower shall also be solely responsible for any external legal or other professional fees incurred in connection with the Legal Department’s delivery of Legal Services to SunPower. 

 

 -6-

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