Document:

Unassociated Document

    SUNPOWER
CORPORATION

    QUARTERLY
KEY INITIATIVE BONUS PLAN

    (Changes effective January 31, 2008)

    

    

    Article 1 - KI Plan
Objective

    

    
      	
               
      

            	
              1.1
      The objective of this  Quarterly Key Initiative Bonus Plan (“KI
      Plan”) is to provide incentives to employees of SunPower Corporation and
      its subsidiaries (collectively, the “Company”) based on the Company’s
      quarterly corporate milestones and an individual's performance against set
      individual key initiatives (KIs).  The 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,
      2008.  ”Plan Periods” under the KI Plan will correspond to the
      fiscal quarters of the Company.

            

    

    

    Article 3 - Eligibility for
KI Plan Participation

    

         
3.1 All executive officers of the Company, as well as any other employees
approved by the Chief Executive Officer of the Company, shall participate in the
KI Plan, except those on a sales compensation or project compensation
plan.

    

    

    Article 4 - Target Bonus
Percentages and Calculations

    

    
      	
              4.1 

            	
              KI Target Bonus
      Percentages.  Each KI Plan participant will be allocated
      a KI target bonus expressed as a percentage of his or her base salary. 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 

            	
              KI Plan
      Components.

            

    

    
      	
              4.2.1

            	
              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).

            

    

    
      	
              4.2.2 

            	
              Company Milestone
      Score.  With respect to each quarter the Board of
      Directors will establish quarterly corporate 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).

            

    

    
      	
              4.2.3 

            	
              PBT
      Score.  At the start of each quarter the executive
      officers will establish an internal profit before tax financial target for
      the Company (“Plan PBT”).  Following each quarter the actual
      profit before tax of the Company for such quarter will be determined
      (“Actual PBT”).

            

    

    

    
      	
              4.3 

            	
              Quarterly
      bonuses under this 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)  

            	
              If
      the Actual PBT is less than 100% of the Plan PBT, no KI bonus payout will
      be made for the quarter.

            

    

    

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    
      	
              (ii)  

            	
              If
      the Actual PBT is equal to or greater than 100% of the Plan PBT, but the
      company milestone score is equal to or less than 60%, no KI bonus payout
      will be made for the quarter.

            

    

    

    
      	
              (iii)  

            	
              If
      both the Actual PBT is equal to or greater than 100% AND the company
      milestone score is greater than 60%, the quarterly KI bonus will be paid
      as follows:

            

    

    

    a. Corporate Milestone Score
greater than 80%:  Full
KI score payout.  For example, if an individual has a $20,000
quarterly base salary, 10% KI target bonus and a KI score of 80%, s/he would
receive a quarterly bonus of 20,000 x .10 x .80 = $1,600.

    

    b. Company Milestone Score less than
or equal to 80%:   One-half KI score payout.  In
the above example, the individual would receive a quarterly bonus of
$800.

    

    
      	
              (iv)  

            	
              If
      both the Actual PBT is equal to or greater than 80% and the company
      milestone score is greater than 100%, the quarterly KI bonus may be paid
      above 100%, subject to any maximum cap established by the Compensation
      Committee. For 2008, the maximum cap is
110%.

            

    

    

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

    

    
      	
              5.1 

            	
              Payout
      calculations under the KI Plan will be based on the plan participant's
      base salary at the end of the quarter being measured and not the base
      salary at the time the milestone and KI portion of the bonus is
      paid.

            

    

    

    
      	
              5.2 

            	
              In
      the event a participant’s KI target bonus percentage is changed during the
      quarter, the new KI target bonus will be effective at the beginning of the
      immediately following quarter.  The participant’s KI payout for
      the current quarter shall be based on the KI target bonus in effect at the
      beginning 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 corporate
      milestone score for such quarter.

            

    

    

    Article 7 - Eligibility for
Payment

    

            7.1
Newly hired employees must be employed by the second Monday of the quarter to be
eligible for that quarter’s bonus payout.  Employees hired after this
period must still submit KIs within 10 days of hire and scored KI forms as
normally scheduled.

    

    
      	
               
      

            	
              7.2
      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.

            

    

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    
      	
               
      

            	
              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%.

            

    

    

    
      	
               
      

            	
              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 Section’s 8.2, 8.3, and 8.4 will be paid in
  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 KI Plan is
      transferable or assignable except by will or laws of descent and
      distribution.

            

    

    

    
      	
               
      

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

            

    

    

    
      	
               
      

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

            

    

    

    
      	
               
      

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

            

    

    

    
      	
               
      

            	
              8.5
      This 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.  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 KI Plan shall not limit the Compensation Committee
      (or its designees) to modify said 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.

            

    

    

    3ex10-2.htm

    FIRST
AMENDMENT

    

    

    

    
      THIS
FIRST AMENDMENT TO LEASE is dated as of December 12, 2006 and is made between
CYPRESS SEMICONDUCTOR CORPORATION, as Landlord, and SUNPOWER CORPORATION,
as Tenant, to be a part of that certain Office Lease Agreement and all exhibits
thereto,
dated for reference purposes only as of May 15, 2006.(the “Original Lease”),
concerning approximately 43,732 rentable square feet (“RSF”),  located
within the Premises stated in the Original Lease. The Premises are located
within the Building commonly known as  Building #3, (the “Building”),
located at 3939 N. First Street (the “Land”) as shown on the floor plan on Exhibit
"A".  (See Section
1.1).

     

    Landlord
and Tenant now desire to modify the Original Lease and, in consideration of the
mutual promises contained herein and for the other good and valuable
consideration, the receipt and sufficiency of which the parties hereby
acknowledge, Landlord and tenant hereby agree, intending to be bound thereby,
that the Original Lease is modified and supplemented in accordance with the
terms and conditions set forth below:

     

    

     

    A.  BASIC TERMS: (Page 1 & 2
of the Original Lease Agreement)

     

    Item#7.                           Premises:  “Approximately  43,732
rentable square feet.  The Premises are located within the Building as
shown on Exhibit “A” (See  Section 1.1)” shall be changed
to:  “Approximately 45,840 rentable square feet.  The
Premises are located within the Building as shown on Exhibit “A-1” (See attached
Exhibit “A-1”.”

            Item#9.                         Base
Rent:                                The
Base Rent Table in the Original Lease shall be amended as follows:

     

    
       

      
        	  Lease
      Months 	  Monthly
      Base Rent / SF 	  Monthly
      Base Rent 
	 1-8 	 $2.16 /
      SF	 $   94,461
	 9-12	 $2.16 /
      SF	 $   99,014
	 13-24	 $2.25 /
      SF	 $
      103,140
	 25-36 	 $2.34 /
      SF	 $
      107,266
	 37-48 	 $2.43/
      SF	 $
      111,391
	 49-60	 $2.53 /
      SF	 $
      115,975

      

       

    

    B.           ARTICLES:

     

    
      	
               
      

            	
              1.

            	
              Article
      1 Section 1.1- line 7 delete “A”, change to:
  “A-1”

            

    

     

    
      	
               
      

            	
              2.

            	
              Article
      1 Section 1.1- delete last sentence “The Premises...” shall be changed to:”
      The Premises shall contain approximately 45,840 square
    feet.”

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	
               
      

            	
              3.

            	
              Article
      2, Section 2.1, Base Rent, the monthly base rent remains up to the 8th
      month or December 31, 2006 as per Original Lease .  The monthly
      base rent shall be adjusted to include the additional space rent effective
      on the 9th
      month of the Original Lease or January 1, 2007, as shown in the Base Rent
      Table (b) of the Basic Terms of this First
  Amendment.

            

    

     

    C.           EXHIBITS

     

    
      	
               
      

            	
              4.

            	
              Exhibit
      “A”, the Floor Plan shall be amended as shown in Exhibit “A-1” of the
      First Amendment.

            

    

     

    
      	
               
      

            	
              5.

            	
              In
      the event of any inconsistency between this First Amendment and the
      Original Lease, the terms in this First Amendment shall
      prevail.  Except as modified herein, the Original Lease remains
      in full force and effect.

            

    

     

    

     

    IN
WITNESS WHEREOF, the parties hereto have executed this First Amendment to Lease
as of the date first set forth above.

     

    

    

     

    
      	
               Signed, sealed
      and delivered  

              in the presence of:

            	 CYPRESS
      SEMICONDUCTOR CORP:

    

     

     

    
      
      

       

      
        	 	 By: /s/ NEIL
      H. WEISS
	Name:	 Name: 
      Neil H. Weiss
	
                 (Print or Type
      Name)

              	 Title: 
      Vice President Treasurer

      

    

     

    
      	 	 
	Name:	 
	
               (Print or Type
      Name)

            	 Dated: 
      2/27/07

    

     

    

    

     

    
      	 	 SUNPOWER
      CORPORATION:

    

     

     

    

    
      	 	 By: /s/ E.
      HERNANDEZ
	Name:	 Name:  E.
      Hernandez
	
               (Print or Type
      Name)

            	 Title: 
      CFO

    
      	 	 
	Name:	 
	
               (Print or Type
      Name)

            	 Dated: 
      2/27/07

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
"A-1"

    FLOOR
PLAN

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