Document:

2001 Omnibus Plan as Amended and Restated

 Exhibit 10.1 
 STEIN MART, INC. 
 2001 OMNIBUS PLAN 

AS AMENDED AND RESTATED EFFECTIVE JUNE 14, 2011 

 STEIN MART, INC. 

2001 OMNIBUS PLAN 
 AS AMENDED AND RESTATED EFFECTIVE JUNE 14, 2011 
 Table of Contents

  

							
	 	  	 	  	Page	 
	 ARTICLE I.
	  	 PURPOSE
	  	 	1	  
	 1.1
	  	 Purpose.
	  	 	1	  
	 1.2
	  	 Adoption.
	  	 	1	  
			
	 ARTICLE II.
	  	 DEFINITIONS
	  	 	1	  
	 2.1
	  	 Advisor
	  	 	1	  
	 2.2
	  	 Affiliate
	  	 	1	  
	 2.3
	  	 Award
	  	 	1	  
	 2.4
	  	 Award Agreement
	  	 	1	  
	 2.5
	  	 Board
	  	 	1	  
	 2.6
	  	 Change of Control
	  	 	1	  
	 2.7
	  	 Code
	  	 	1	  
	 2.8
	  	 Committee
	  	 	1	  
	 2.9
	  	 Exchange Act
	  	 	1	  
	 2.10
	  	 Fair Market Value
	  	 	2	  
	 2.11
	  	 Incentive Stock Option
	  	 	2	  
	 2.12
	  	 Key Employee
	  	 	2	  
	 2.13
	  	 Non-Employee Director
	  	 	2	  
	 2.14
	  	 Non-Qualified Stock Option
	  	 	2	  
	 2.15
	  	 Option
	  	 	2	  
	 2.16
	  	 Outside Directors
	  	 	2	  
	 2.17
	  	 Participant
	  	 	2	  
	 2.18
	  	 Performance Award
	  	 	2	  
	 2.19
	  	 Performance Goal
	  	 	2	  
	 2.20
	  	 Plan
	  	 	2	  
	 2.21
	  	 Plan Year
	  	 	2	  
	 2.22
	  	 Released Securities
	  	 	2	  
	 2.23
	  	 Restricted Stock
	  	 	2	  
	 2.24
	  	 Rule 16b-3
	  	 	2	  
	 2.25
	  	 Shares
	  	 	2	  
	 2.26
	  	 Stock Appreciation Rights
	  	 	2	  
			
	 ARTICLE III.
	  	 ADMINISTRATION
	  	 	3	  
	 3.1
	  	 Committee
	  	 	3	  
	 3.2
	  	 Delegation of Authority
	  	 	3	  
			
	 ARTICLE IV.
	  	 SHARES
	  	 	4	  
	 4.1
	  	 Number of Shares Available
	  	 	4	  
	 4.2
	  	 Shares Subject to Terminated Awards
	  	 	4	  
	 4.3
	  	 Adjustments
	  	 	4	  
			
	 ARTICLE V.
	  	 PARTICIPATION
	  	 	4	  
	 5.1
	  	 Eligible Participants
	  	 	4	  
			
	 ARTICLE VI.
	  	 STOCK OPTIONS AND STOCK APPRECIATION RIGHTS
	  	 	5	  
	 6.1
	  	 Grant of Option
	  	 	5	  
	 6.2
	  	 Stock Appreciation Rights
	  	 	5	  
	 6.3
	  	 Compliance with Code Section 162(m)
	  	 	6	  
	 6.4
	  	 Acceleration of Options on Change of Control
	  	 	6	  
			
	 ARTICLE VII.
	  	 RESTRICTED STOCK
	  	 	6	  
	 7.1
	  	 Restricted Stock Awards
	  	 	6	  
	 7.2
	  	 Compliance with Code Section 162(m)
	  	 	7	  

							
	 ARTICLE VIII.
	  	 PERFORMANCE AWARDS
	  	 	7	  
	 8.1
	  	 Performance Awards
	  	 	7	  
	 8.2
	  	 Compliance with Code Section 162(m)
	  	 	7	  
			
	 ARTICLE IX.
	  	 OTHER SHARE-BASED AWARDS
	  	 	8	  
	 9.1
	  	 Grant of Other Awards
	  	 	8	  
	 9.2
	  	 Terms of Other Awards
	  	 	8	  
			
	 ARTICLE X.
	  	 NON-EMPLOYEE DIRECTOR AWARDS
	  	 	8	  
	 10.1
	  	 Automatic Grant of Non-Employee Director Option Awards
	  	 	8	  
			
	 ARTICLE XI.
	  	 TERMS APPLICABLE TO ALL AWARDS GRANTED UNDER THE PLAN
	  	 	9	  
	 11.1
	  	 Award Agreement
	  	 	9	  
	 11.2
	  	 No Consideration for Awards
	  	 	9	  
	 11.3
	  	 Awards May Be Granted Separately or Together; No Limitations on Other Awards
	  	 	9	  
	 11.4
	  	 Limitations on Transfer of Awards
	  	 	9	  
	 11.5
	  	 Term
	  	 	9	  
	 11.6
	  	 Taxes
	  	 	9	  
	 11.7
	  	 Rights and Status of Recipients
	  	 	9	  
	 11.8
	  	 Awards Not Includable for Benefit Purposes
	  	 	9	  
	 11.9
	  	 Share Certificates; Representation by Key Employee Participants; Registration Requirements
	  	 	9	  
	 11.10
	  	 Amendments to Awards
	  	 	10	  
	 11.11
	  	 Correction of Defects, Omissions, and Inconsistencies
	  	 	10	  
			
	 ARTICLE XII.
	  	 AMENDMENT AND TERMINATION
	  	 	10	  
	 12.1
	  	 Amendment
	  	 	10	  
	 12.2
	  	 Termination
	  	 	10	  
	 12.3
	  	 Repricing and Backdating Prohibited
	  	 	10	  
			
	 ARTICLE XIII.
	  	 GENERAL PROVISIONS
	  	 	10	  
	 13.1
	  	 Effective Date of the Plan
	  	 	10	  
	 13.2
	  	 Term of Plan
	  	 	10	  
	 13.3
	  	 Governing Law
	  	 	11	  
	 13.4
	  	 Unfunded Status of Plan
	  	 	11	  
	 13.5
	  	 Headings
	  	 	11	  
	 13.6
	  	 Severability
	  	 	11	  
	 13.7
	  	 Code Section 409A
	  	 	11	  

 STEIN MART, INC. 

2001 OMNIBUS PLAN 
  

	Article I.	Purpose 

 1.1 Purpose.
The purpose of the Stein Mart, Inc. 2001 Omnibus Plan (the “Plan”) is to assist Stein Mart, Inc. (the “Company”), together with any successor thereto, and its Affiliates, to attract and retain highly competent individuals to
serve as Key Employees, Non-Employee Directors and Advisors who will contribute to the Company’s success, and to motivate such persons to achieve long-term objectives which will inure to the benefit of all shareholders of the Company.

 1.2 Adoption and Approval. The Plan has been approved by the Board of Directors of the Company and was originally
approved by the Company’s shareholders at the annual meeting of shareholders in June of 2001. The shareholders subsequently re-approved the Plan for purposes of permitting Awards made under the Plan to comply with the provisions of Code
Section 162(m) at the annual meeting of shareholders held in June of 2006 and June of 2011, as well as to increase the number of shares authorized for issuance hereunder. 

 

	Article II.	Definitions 

 For purposes
of this Plan, capitalized terms shall have the following meanings: 
 2.1 Advisor means a person other than an employee
who provides services to the Company or any Affiliate as a consultant or advisor and who is responsible for or contributes to the management, growth, or profitability of the business of the Company or any Affiliate, as determined by the Committee.

 2.2 Affiliate means any entity of which shares (or other ownership interests) having 50 percent or more of the voting
power are owned or controlled, directly or indirectly, by the Company. 
 2.3 Award means any Non-Qualified Stock Options
or Incentive Stock Options, Stock Appreciation Rights, Restricted Stock, Performance Awards, or any other award made under the terms of the Plan provided that Incentive Stock Options may not be awarded after March 28, 2011. 

2.4 Award Agreement means a written agreement, contract or other document specifically setting forth the terms and conditions of
any Award granted under the Plan. 
 2.5 Board means the Board of Directors of the Company. 

2.6 Change of Control means the occurrence of any of the following: (a) the Board approves the sale of all or substantially
all of the assets of the Company in a single transaction or series of related transactions; (b) the Company sells and/or one or more shareholders sells a sufficient amount of its capital stock (whether by tender offer, original issuance, or a
single or series of related stock purchase and sale agreements and/or transactions) sufficient to confer on the purchaser or purchasers thereof (whether individually or a group acting in concert) beneficial ownership of at least 35% of the combined
voting power of the voting securities of the Company; (c) the Company is party to a merger, consolidation or combination, other than any merger, consolidation or combination that would result in the holders of the voting securities of the
Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) more than 50% of the combined voting power of the voting securities of the
Company (or such surviving entity) outstanding immediately after such merger, consolidation or combination; or (d) a majority of the Board of Directors consists of individuals who are not Continuing Directors (for this purpose, a Continuing
Director is an individual who (i) was a director of the Company on March 1, 2001 or (ii) whose election or nomination as a director of the Company is approved by a vote of at least a majority of the directors then comprising the
Continuing Directors). Notwithstanding the foregoing, if an Award is considered deferred compensation subject to the provisions of Code Section 409A, and if a payment under such Award is triggered upon a “Change of Control,” or if an
Award otherwise must contain a compliant definition of “Change of Control” in order to meet the requirements of Code Section 409A then the foregoing definition shall be deemed amended as necessary to comply with Code
Section 409A, and the Committee may include such amended definition in the Award agreement issued with respect to such Award. 
 2.7 Code means the Internal Revenue Code of 1986, as amended from time to time. 
 2.8 Committee means a committee of the Board designated by the Board to administer the Plan and composed of not less than two directors. At least two of the members of the Committee shall qualify
as Outside Directors. 
 2.9 Exchange Act means the Securities Exchange Act of 1934, as amended. 

  
 1 

 2.10 Fair Market Value means, with respect to any property (including, without
limitation, any Shares or other securities), the fair market value of such property determined by such methods or procedures as shall be established from time to time by the Committee. 

2.11 Incentive Stock Option means an Option that meets the requirements of an incentive stock option under Code Section 422.

 2.12 Key Employee means any officer or other key employee of the Company or of any Affiliate who is responsible for or
contributes to the management, growth, or profitability of the business of the Company or any Affiliate, as determined by the Committee. 
 2.13 Non-Employee Director means each member of the Board who is not an employee of the Company or any Affiliate. 
 2.14 Non-Qualified Stock Option means an Option that is not an Incentive Stock Option. 
 2.15 Option means any option to purchase Shares granted pursuant to the Plan, including any reload feature which also may be awarded. 

2.16 Outside Directors means a Non-Employee Director who qualifies as both an outside director for purposes of Section 162(m)
of the Code and as a non-employee director for purposes of Rule 16b-3 under the Exchange Act. 
 2.17 Participant shall
mean any Key Employee (referred to as a Key Employee Participant), any Non-Employee Director (referred to as a Non-Employee Director Participant), or any Advisor (referred to as an Advisor Participant) receiving an Award under the Plan. 

2.18 Performance Award means the right, granted pursuant to Article VIII, to receive an Award, payable in cash or Shares or a
combination of both at the end of a specified period for which Performance Goals have been established. 
 2.19 Performance
Goal means a target level of performance during an Award period specified by the Committee for the Company as a whole, for one or more Affiliates, for a division or other operating unit, and/or for a Participant or a group of Participants, in
each case as established by the Committee. The Performance Goals for an Award made to a Key Employee Participant that is intended to be “performance-based compensation” (within the meaning of Code Section 162(m)) shall be based on one
or more of the following measures of performance as determined by the Committee: (a) net sales; (b) gross profit; (c) operating or other expenses (or any individual type of expense); (d) earnings before interest and taxes;
(e) earnings before interest, taxes, depreciation and amortization; (f) net income; (g) earnings per share (basic or diluted); (h) cash flow; (i) average sales per store; (j) average sales per square foot;
(k) comparable store sales increases; (l) average inventories (calculated by taking the average of inventories at the end of each month); (m) number of stores opened; (n) return on investment (determined with reference to one or
more categories of income or cash flow and one or more categories of assets, capital or equity); (o) total shareholder returns; and (p) stock price. 
 2.20 Plan means the Stein Mart, Inc. 2001 Omnibus Plan as set forth herein and as the same may be amended from time to time. 

2.21 Plan Year means the twelve month period ending on any December 31. 

2.22 Released Securities mean Shares of Restricted Stock with respect to which all applicable restrictions have expired, lapsed,
or been waived. 
 2.23 Restricted Stock means Shares subject to restrictions imposed in connection with Awards granted
under the Plan. 
 2.24 Rule 16b-3 means Rule 16b-3 as promulgated by the Securities and Exchange Commission under
Section 16 of the Exchange Act, as the same may be amended from time to time, and any successor rule. 
 2.25 Shares
mean the shares of common stock of the Company, $.01 par value per share, and such other securities or property as may become subject to Awards pursuant to an adjustment made under Section 4.3 of the Plan. 

2.26 Stock Appreciation Rights mean awards granted in accordance with Article VI. 

  
 2 

	Article III.	Administration 

 3.1
Committee. The Plan will be administered by the Committee; provided, however, that if at any time the Committee shall not be in existence, the functions of the Committee shall be exercised by the Board. Subject to the terms of the Plan and
applicable law, the Committee shall have full power and authority to: 
  

	 	(i)	designate Key Employees and Advisors to be Participants; 

  

	 	(ii)	determine the type or types of Awards to be granted to Key Employee Participants and Advisor Participants under the Plan; 

 

	 	(iii)	determine the number of Shares to be covered by (or with respect to which payments, rights, or other matters are to be calculated in connection with) Awards granted to
Key Employee Participants or Advisor Participants; 

  

	 	(iv)	determine the terms and conditions of any Award granted to a Key Employee Participant or Advisor Participant; 

 

	 	(v)	determine whether, to what extent, and under what circumstances Awards granted to Key Employee Participants or Advisor Participants may be settled or exercised in cash,
Shares, other securities, other awards, or other property, or canceled, forfeited, or suspended to the extent permitted in Sections 4.3, 11.10 and 11.11 of the Plan, and the method or methods by which Awards may be settled, exercised, canceled,
forfeited, or suspended; 

  

	 	(vi)	determine whether, to what extent, and under what circumstances cash, Shares, other securities, other Awards, other property, and other amounts payable with respect to
an Award granted to Key Employee Participants or Advisor Participants under the Plan shall be deferred either automatically or at the election of the holder thereof; 

 

	 	(vii)	interpret and administer the Plan and any instrument or agreement relating to, or Award made under, the Plan (including, without limitation, any Award Agreement);

  

	 	(viii)	establish, amend, suspend, or waive such rules and regulations and appoint such agents as it shall deem appropriate for the proper administration of the Plan; and

  

	 	(ix)	make any other determination and take any other action that the Committee deems necessary or desirable for the administration of the Plan. 

Unless otherwise expressly provided in the Plan, all designations, determinations, interpretations, and other decisions under or with
respect to the Plan or any Award shall be within the discretion of the Committee, may be made at any time, and shall be final, conclusive, and binding upon all persons, including the Company, any Affiliate, any Participant, any holder or beneficiary
of any Award, any shareholder, and any employee of the Company or of any Affiliate. Option Awards to Non-Employee Directors under Section 10.1 of the Plan shall be automatic and the amount and terms of such Awards shall be determined as
provided in Article X of the Plan. 
 3.2 Delegation of Authority. To the extent permitted by applicable law, the Board
may, in its discretion, delegate to another committee of the Board or to one or more officers of the Company any or all of the authority and responsibility of the Committee with respect to awards to Key Employee Participants other than those who are
subject to the provisions of Section 16 of the Exchange Act or Section 162(m) of the Code at the time any such delegated authority or responsibility is exercised. In the event that each member of the Committee is not an Outside Director,
the Committee may delegate the authority and responsibility of the Committee with respect to Awards to Key Employee Participants who are subject to the provisions of Section 16 of the Exchange Act and who are or may be subject to
Section 162(m) of the Code to a subcommittee consisting of at least two (2) Committee members each of whom qualify as an Outside Director. To the extent that the Board has delegated to such other committee or one (1) or more officers,
or to the extent the Committee has delegated to such subcommittee, the authority and responsibility of the Committee, all references to the Committee herein shall include such other committee or one or more officers or subcommittee. 

  
 3 

	Article IV.	Shares 

 4.1
Number of Shares Available. The maximum number of Shares which may be issued under the Plan is 7,500,000 (seven million, five hundred thousand) plus, effective June 14, 2011, 3,000,000 (three million). Shares available under the Plan
which are not awarded in one particular year may be awarded in subsequent years. Any and all Shares may be issued in respect of any of the types of Awards. The Shares to be offered under the Plan may be authorized and unissued Shares or treasury
Shares. The number of Shares covered by an Award under the Plan, or to which such Award relates, shall be counted on the date of grant of such Award against the number of Shares available for granting Awards under the Plan.  

4.2 Shares Subject to Terminated Awards. The (a) Shares covered by any unexercised portions of terminated Options,
(b) Shares forfeited as provided under the Plan, and (c) Shares subject to any Awards which are otherwise surrendered by the Participant and as to which Shares no Participant has received any payment or other benefit of ownership with
respect thereto, may again be subject to new Awards under the Plan. In the event the purchase price of an Option is paid in whole or in part through the delivery of Shares, the gross number of Shares issuable in connection with the exercise of the
Option shall not again be available for the grant of Awards under the Plan. Shares used to measure the amount payable to a Participant in respect of an earned Performance Award shall not again be available for the grant of Awards under the Plan.
Shares issued in payment of Performance Awards which are denominated in cash amounts shall not again be available for the grant of Awards under the Plan. 
 4.3 Adjustments. 
 (a) General. In the event that the Committee shall
determine that any dividend or other distribution (whether in the form of cash, Shares, other securities, or other property), recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination,
repurchase, or exchange of securities of the Company, or other similar corporate transaction or event affects the Shares such that an adjustment is determined by the Committee to be appropriate in order to prevent dilution or enlargement of the
benefits or potential benefits intended to be made available under the Plan, then the Committee shall, in such manner as it shall deem equitable, adjust any or all of (i) the number and type of Shares subject to the Plan and which thereafter
may be issued under the Plan, (ii) the individual Key Employee Participant maximums for Awards granted during any calendar year, (iii) the number and type of Shares subject to outstanding Awards, and (iv) the grant, purchase, or
exercise price with respect to any Award, or, if deemed appropriate, make provisions for the mandatory surrender of an Award and a cash payment to the holder of an outstanding Award upon such surrender. With respect to Awards of Incentive Stock
Options no such adjustment shall be authorized to the extent that such authority would cause the Plan to violate Section 422(b)(1) of the Code or any successor provision thereto; and provided further, that the number of Shares subject to any
Award payable or denominated in Shares shall always be a whole number. Nonqualified Stock Option Awards subject to grant or previously granted to Non-Employee Directors under the Plan at the time of any event described in the preceding sentence
shall be subject to only such adjustment as shall be necessary to maintain the proportionate interest of the optionee and preserve, without exceeding, the value of such Option Awards. 

(b) Adjustment to Awards upon Certain Acquisitions. In the event the Company or any Affiliate shall assume outstanding employee
awards or the right or obligation to make future awards in connection with the acquisition of another business or another corporation or business entity, the Committee shall make such adjustments, not inconsistent with the terms of the Plan, in the
terms of Awards granted to Key Employee Participants or Advisor Participants (and the Board shall make such adjustments with respect to Non-Employee Directors) as it shall deem appropriate in order to achieve reasonable comparability or other
equitable relationship between the assumed awards and the Awards granted under the Plan to Participants as so adjusted. 
  

	Article V.	Participation 

 5.1
Eligible Participants. Any Key Employee, including any executive officer or employee-director of the Company or of any Affiliate, shall be eligible to be designated a Key Employee Participant. All Non-Employee Directors shall be Participants
and receive Awards as provided in Article X of the Plan (the provisions of which are automatic and non-discretionary in operation) and shall have the right to receive Options under Article VI and other Awards under Article IX. Any Advisor shall be
eligible to be designated an Advisor Participant. 

  
 4 

	Article VI.	Stock Options and Stock Appreciation Rights 

 6.1 Grant of Option. The Committee is hereby authorized to grant Options to Key Employee Participants and Advisor Participants as set forth below and with such additional terms and conditions, in
either case not inconsistent with the provisions of the Plan, as the Committee shall determine. The Board is hereby authorized to grant Options to Non-Employee Directors as set forth below with such additional terms and conditions, in either case
not inconsistent with the provisions of the Plan, as the Board shall determine, and any reference to the Committee in this Section 6.1 shall mean the Board with reference to any Options granted to Non-Employee Directors under this
Section 6.1. 
 (a) Exercise Price. The exercise price per Share purchasable under an Option shall be
determined by the Committee at the time of grant but, unless approved by the Board, shall be not less than 100% of the Fair Market Value of the Share on the date of grant of such Option; provided, however that in the event the exercise price per
Share purchasable under an Option granted to a Participant subject to Code Section 409A is less than 100% of the Fair Market Value of the Share on the date of grant, such Option shall comply with Code Section 409A. 

(b) Option Term. The term of each Option shall be fixed by the Committee, but no Incentive Stock Option shall be exercisable more
than ten years after the date of grant. 
 (c) Exercisability and Method of Exercise. An Option Award may contain such
Performance Goals and waiting periods, and shall become exercisable in such manner and within such period or periods and in such installments or otherwise, as shall be determined by the Committee at the time of grant. The Committee shall also
determine the method or methods by which, and the form or forms, including, without limitation, cash, Shares, other securities, other Awards, or other property, or any combination thereof, having a Fair Market Value on the exercise date equal to the
relevant exercise price, in which payment of the exercise price with respect to any Option may be made or deemed to have been made (including payment in accordance with a cashless exercise program under which, if so instructed by the Participant,
Shares may be issued directly to the Participant’s broker or dealer upon receipt of the purchase price in cash from the broker or dealer). No Shares shall be issued until payment therefore, as provided herein, has been made. Committee approval
shall be required in order for Shares held by a Participant for fewer than six months to be used in payment of the exercise price of an Option, provided that such approval shall not be required for the payment of the exercise price using Shares that
would otherwise be issued pursuant to such exercise. 
 (d) Incentive Stock Options. The terms of any Incentive Stock
Option granted under the Plan prior to March 28, 2011 shall comply in all respects with the provisions of Code Section 422, or any successor provision thereto, and any regulations promulgated thereunder. To the extent an Incentive Stock
Option fails to meet the requirements of Code Section 422, the Option shall be treated as a Non-Qualified Stock Option. 

(e) Reload Feature. The Committee shall have the authority to specify, at the time of grant of Incentive Options or, with respect
to Non-qualified Stock Options, at or after the time of grant, that a Key Employee Participant’s Options, in part or in whole, shall include a “reload feature.” The reload feature is a provision which the Committee may, but is not
required to, include in any Option granted to Key Employee Participants under this Plan to the effect that at such time as the original Option is exercised, the optionee shall automatically be granted a new Option pursuant hereto to purchase a
number of Shares equal to the number of Shares utilized by the optionee to pay the option exercise price on the original option. A reload Option shall have an exercise price equal to the Fair Market Value of the Shares on the date it is granted and
shall expire on the stated expiration date of the original Option. A reload Option shall contain such other terms and conditions as the Committee, in its discretion, deems to be desirable. 

6.2 Stock Appreciation Rights. The Committee is hereby authorized to grant Stock Appreciation Rights to Key Employee Participants
and Advisor Participants. Stock Appreciation Rights granted in tandem with Incentive Stock Options may only be granted simultaneously with the grant of the related Incentive Stock Option to such Participant. Subject to the terms of the Plan, the
grant price, term, methods of exercise, methods of settlement (including whether Stock Appreciation Rights will be settled in cash, Shares, other securities, other Awards, or other property, or any combination thereof), and any other terms and
conditions of any Stock Appreciation Right shall be as determined by the Committee; provided, however, that in the event the grant price of a Stock Appreciation Right granted to a Participant subject to Code Section 409A is less than 100% of
the Fair Market Value of a Share on the date of grant, such Stock Appreciation Right shall comply with Code Section 409A. The Committee may impose such conditions or restrictions on the exercise of any Stock Appreciation Right as it may deem
appropriate. 

  
 5 

 6.3 Compliance with Code Section 162(m). Notwithstanding any other provision of
the Plan, the maximum number of Shares with respect to which Options and Stock Appreciation Rights, in the aggregate, may be awarded to any Participant during any calendar year under the Plan is 1,000,000 (one million). 

6.4 Acceleration of Options on Change of Control. In the event that a Change of Control occurs, immediately before such Change of
Control (or in the case where the Change of Control results from sales of capital stock by shareholders, immediately after such Change of Control), all outstanding Options shall become exercisable in full without regard to whether the Options by
their terms are at such time exercisable in full. The Committee (or the Board in the case of Options granted to Non-Employee Directors under Article V) may, at the time of grant of an Option, include different acceleration provisions in the Award
Agreement, in which case the provisions of the Award Agreement shall control. 
  

	Article VII.	Restricted Stock 

 7.1
Restricted Stock Awards. The Committee is hereby authorized to grant Awards of Restricted Stock to Key Employee Participants and Advisor Participants as set forth below and with such additional terms and conditions, in either case not
inconsistent with the provisions of the Plan, as the Committee shall determine. Non-Employee Directors shall not be eligible to be granted Restricted Stock under this Article VII. 

(a) Restrictions. The Committee may grant to any Key Employee or Advisor an Award of Restricted Stock in such number, and subject
to such terms and conditions relating to forfeitability (whether based on Performance Goals, periods of service or otherwise) and relating to restrictions (including, without limitation, any limitation on the right to vote a share of Restricted
Stock or the right to receive any dividend or other right or property), which restrictions may lapse separately or in combination at such time or times, in such installments or otherwise, as the Committee may deem appropriate. 

(b) Registration. Any Restricted Stock granted under the Plan to a Key Employee Participant or Advisor Participant may be evidenced
in such manner as the Committee may deem appropriate, including, without limitation, book-entry registration or issuance of a stock certificate or certificates. In the event any stock certificate is issued in respect of Shares of Restricted Stock
granted under the Plan to a Key Employee Participant or Advisor Participant, such certificate shall be registered in the name of the employee or Advisor and shall bear an appropriate legend (as determined by the Committee) referring to the terms,
conditions, and restrictions applicable to such Restricted Stock. 
 (c) Shareholder Rights. Unless otherwise provided by
an Award Agreement, a Key Employee Participant or Advisor Participant shall become a shareholder of the Company with respect to all Shares subject to the Award Agreement and shall have all of the rights of a shareholder, including, but not limited
to, the right to vote such Shares and the right to receive dividends; provided, however, that any Shares distributed as a dividend or otherwise with respect to any Restricted Stock as to which the restrictions have not yet lapsed shall be subject to
the same restrictions, and evidenced in the same manner, as such Restricted Stock. 
 (d) Payment of Restricted Stock. At
the end of the applicable restriction period relating to Restricted Stock granted to a Key Employee Participant or Advisor Participant, one or more stock certificates for the appropriate number of Shares, free of restrictions, shall be delivered to
the Participant, or, if the Participant received stock certificates representing the Restricted Stock at the time of grant, the legends placed on such certificates shall be removed. 

(e) Forfeiture. Except as otherwise determined by the Committee, upon termination of employment of a Key Employee or the
termination of an Advisor as a consultant or advisor (as determined under criteria established by the Committee) for any reason during the applicable restriction period, all Shares of Restricted Stock still subject to restriction shall be forfeited
by the Participant and reacquired by the Company; provided, however, that the Committee may, when it finds that a waiver would be in the interests of the Company, waive in whole or in part any or all remaining restrictions with respect to Shares of
Restricted Stock held by a Participant. 

  
 6 

 7.2 Compliance with Code Section 162(m). Notwithstanding any other
provision of the Plan, with respect to an Award of Restricted Stock made to any Key Employee Participant that is intended to be “performance-based compensation” (within the meaning of Code Section 162(m)), the following provisions
shall apply:  
 (a) the maximum number of Shares of Restricted Stock that may be awarded to any individual Key Employee
Participant during any calendar year under the Plan is 1,000,000 (one million) Shares; 
 (b) each Award of Restricted Stock
shall provide that the restrictions imposed on such Award shall not lapse until, at a minimum, one or more pre-established (within the meaning of Code section 162(m)) Performance Goals has been achieved by the Company and/or any Affiliate during the
performance period specified by the Committee; and 
 (c) in all other respects, the Restricted Stock shall be administered in
accordance with the requirements of Code section 162(m) for performance-based compensation. 
  

	Article VIII.	Performance Awards 

 8.1
Performance Awards. The Committee is hereby authorized to grant Performance Awards to Key Employee Participants and Advisor Participants as set forth below and with such additional terms and conditions, in either case not inconsistent with
the provisions of the Plan, as the Committee shall determine. Non-Employee Directors shall not be eligible to be granted Performance Awards under the Plan. 
 (a) Issuance. A Performance Award shall consist of the right to receive a payment (measured by (i) the Fair Market Value of a specified number of Shares at the end of the Award period or
(ii) the increase in the Fair Market Value of a specified number of Shares during the Award period or (iii) a fixed cash amount payable at the end of the Award period) contingent upon the extent to which certain predetermined Performance
Goals have been met during an Award period. 
 (b) Earning Performance Awards. The Committee at the date of grant shall
prescribe a formula to determine the percentage of the Performance Award to be earned based upon the degree of attainment of Performance Goals. The degree of attainment of Performance Goals shall be determined as of the last day of the Award period.
The Committee, in its sole discretion, but only under circumstances when events or transactions occur to cause the Performance Goals to be an inappropriate measure of achievement as determined by the Committee, may change the Performance Goals for
any Award period at any time prior to the final determination of the Award, except with respect to Performance Awards that are intended to be “performance-based compensation” (within the meaning of Code Section 162(m)). In the event
the minimum performance targets established by the Committee are not achieved, no payment shall be made to the Participant. 
 (c) Payment of Earned Performance Awards. Payments of earned Performance Awards shall be made in cash or Shares (based on the Fair Market Value of a Share on the last day of the Award period), or a
combination of cash and Shares at the sole discretion of the Committee; provided, however that the Committee shall make such determination no later than the last date permitted under Code Section 409A. Payment normally will be made as soon as
is practicable following the end of an Award period but in no event later than the 15th day of the third month of the calendar year immediately following the calendar year in which an Award period ends. The Committee, however, may permit deferral of the payment of all or a portion of a
Performance Award payable in cash upon the request of the Participant timely made in accordance with rules prescribed by the Committee; provided, however that any such deferral election must be made no later than the last date permitted under, and
otherwise must comply with, Code Section 409A. Deferred amounts may generate earnings for the Participant under the conditions of a separate agreement approved by the Committee and executed by the Participant. The Committee, in its sole
discretion, may define in the Award Agreement such other conditions of payment of earned Performance Awards as it may deem desirable in carrying out the purposes of the Plan. 
 8.2 Compliance with Code Section 162(m). Notwithstanding any other provision of the Plan, with respect to a Performance Award granted to any Key Employee Participant that is intended to
be “performance-based compensation” (within the meaning of Code Section 162(m)), the following provisions shall apply:  
 (a) the aggregate value of Performance Awards granted to an individual Key Employee Participant during a calendar year under the Plan shall not be more than $1,000,000 (one million); 

(b) payment under each Award shall not be made unless one or more pre-established (within the meaning of Code section 162(m)) Performance
Goals has been achieved by the Company and/or any Affiliate during the Award period specified by the Committee; and 

  
 7 

 (c) in all other respects, the Performance Awards (and income resulting from any deferral
thereof) shall be administered in accordance with the requirements of Code section 162(m) for performance-based compensation. 
  

	Article IX.	Other Share-Based Awards 

9.1 Grant of Other Awards. Other Awards, valued in whole or in part by reference to, or otherwise based on, Shares may be granted
either alone or in addition to or in conjunction with other Awards under the Plan by the Committee to Key Employee Participants or Advisor Participants or by the Board to Non-Employee Directors. Subject to the provisions of the Plan, the Committee
(or the Board in the case of an Award to a Non-Employee Director) shall have authority to determine the persons to whom and the time or times at which such Awards shall be made, the number of Shares to be granted pursuant to such Awards, and all
other conditions of the Awards. Any such Award shall be confirmed by an Award Agreement executed by the Committee and the Participant, which Award Agreement shall contain such provisions as the Committee (or the Board in the case of an Award to a
Non-Employee Director) determines to be necessary or appropriate to carry out the intent of this Plan with respect to such Award. 
 9.2 Terms of Other Awards. In addition to the terms and conditions specified in the Award Agreement, Shares issued as a bonus pursuant to this Article IX shall be issued for such consideration as
the Committee (or the Board in the case of an Award to a Non-Employee Director) shall determine, in its sole discretion, but purchase rights shall be priced at 100% of Fair Market Value on the date of the Award. 

 

	Article X.	Non-Employee Director Awards 

 10.1 Automatic Grant of Non-Employee Director Option Awards. 
 (a) Option
Awards. Each person becoming a Non-Employee Director of the Company beginning on or after the effective date of the Plan shall, as of the date he or she becomes a Non-Employee Director, be granted a Nonqualified Stock Option Award consisting of
an option to purchase 4,000 Shares. The exercise price for such Options shall be the Fair Market Value of the Shares on the date of such grant. 
 (b) Restrictions. Subject to the provisions of subsection (c), Awards granted under this Article X become exercisable as to 1,344 Shares on the third anniversary of the date of grant, and an
additional 1,333 Shares each on the four and fifth anniversaries of the date of grant. Each Award granted under this Article X shall expire ten years from the date of grant. 
 (c) Termination. If a Non-Employee Director’s service with the Company terminates by reason of death or disability (within the meaning of Code Section 22(e)(3)) any Option Award granted
under this Article X to such Non-Employee Director may be exercised for a period of 1 (one) year from the date of such termination or until the expiration of the Award, whichever is shorter, to the extent to which the individual would on the date of
exercise have been entitled to exercise the Award if such individual had continued to serve as a Non-Employee Director. If a Non-Employee Director’s service with the Company terminates other than by reason of death or disability or removal for
cause, any such Award held by such Non-Employee Director may be exercised for a period of 3 (three) months from the date of such termination, or until the expiration of the stated term of the Award, whichever is shorter, to the extent to which the
individual would on the date of exercise have been entitled to exercise the Award if such individual had continued to serve as a Non-Employee Director. If a Non-Employee Director’s service with the Company terminates as a result of removal for
cause, any such Award held by such Non-Employee Director will be cancelled immediately and without notice as of the date of such termination. 
 (d) Other Provisions. All applicable provisions of the Plan not inconsistent with this Section 10.1 shall apply to Option Awards granted to Non-Employee Directors. 

  
 8 

	Article XI.	Terms Applicable to All Awards Granted Under the Plan 

 11.1 Award Agreement. No person shall have any rights under any Award granted under the Plan unless and until the Company and the Participant to whom such Award shall have been granted shall have
executed and delivered an Award Agreement or received any other Award acknowledgment authorized by the Committee expressly granting the Award to such person and containing provisions setting forth the terms of the Award. If there is any conflict
between the provisions of an Award Agreement and the terms of the Plan, the terms of the Plan shall control. 
 11.2 No
Consideration for Awards. Awards shall be granted to Key Employee Participants or Advisor Participants for no cash consideration unless otherwise determined by the Committee. Non-Employee Director Awards under Article X shall be granted
for no cash consideration unless otherwise required by law. 
 11.3 Awards May Be Granted Separately or Together; No
Limitations on Other Awards. Awards to Participants under the Plan may be granted either alone or in addition to, in tandem with, or in substitution for any other Award or any award granted under any other plan of the Company or any Affiliate
and the terms and conditions of an Award need not be the same with respect to each such Participant. Awards granted in addition to or in tandem with other Awards, or in addition to or in tandem with awards granted under any other plan of the Company
or any Affiliate may be granted either at the same time as or at a different time from the grant of such other Awards or awards. 
 11.4 Limitations on Transfer of Awards. Awards granted under the Plan shall not be transferable other than by will or the laws of descent and distribution, except that a Participant may, to the
extent allowed by the Committee and in a manner specified by the Committee (or the Board with respect to Options granted pursuant to Article X), (a) designate in writing a beneficiary to exercise the Award after the Participant’s death, as
the case may be, and (b) transfer any award. No Award (other than Released Securities), and no right under any such Award, may be pledged, alienated, attached, or otherwise encumbered, and any purported pledge, alienation, attachment, or
encumbrance thereof shall be void and unenforceable against the Company or any Affiliate. 
 11.5 Term. Except as
otherwise provided in the Plan, the term of each Award shall be for such period as may be determined by the Committee. 
 11.6
Taxes. The Company shall be entitled, if the Committee deems it necessary or desirable, to withhold (or secure payment from the Participant in lieu of withholding) the amount of any withholding or other tax required by law to be withheld or
paid by the Company with respect to any amount payable and/or Shares issuable to such Participant under the Plan, or with respect to any income recognized upon the lapse of restrictions applicable to an Award or upon a disqualifying disposition of
Shares received pursuant to the exercise of an Incentive Stock Option, and the Company may defer payment or issuance of the cash or Shares upon the grant, exercise or vesting of an Award unless indemnified to its satisfaction against any liability
for any such tax. The amount of such withholding or tax payment shall be determined by the Committee and shall be payable by the Participant at such time as the Committee determines. The Committee may prescribe in each Award Agreement one or more
methods by which the Participant will be permitted to satisfy his or her tax withholding obligation, which methods may include, without limitation, the payment of cash by the Participant to the Company and the withholding from the Award, at the
appropriate time, of a number of Shares sufficient, based upon the Fair Market Value of such Shares, to satisfy such minimum tax withholding requirements. The Committee shall be authorized, in its sole discretion, to establish such rules and
procedures relating to any such withholding methods as it deems necessary or appropriate. 
 11.7 Rights and Status of
Recipients. No Employee, Participant (other than a Non-Employee Director Participant as provided in Article X), or other person shall have any claim or right to be granted an Award under this Plan. Neither the Plan nor any action taken hereunder
shall be construed as giving any employee any right to be retained in the employ of the Company or any Affiliate. The grant of an Award to a Non-Employee Director pursuant to Article X of the Plan shall confer no right on such Non-Employee Director
to continue as a director of the Company, and the grant of an Award to an Advisor shall confer no right on such Advisor to continue as a consultant or advisor to the Company or any Affiliate. 

11.8 Awards Not Includable for Benefit Purposes. Income recognized by a Participant pursuant to the provisions of the Plan
shall not be included in the determination of benefits under any employee pension benefit plan (as such term is defined in Section 3(2) of the Employee Retirement Income Security Act of 1974, as amended) or group insurance or other benefit
plans applicable to the Participant which are maintained by the Company, except as may be provided under the terms of such plans or determined by resolution of the Board. 
 11.9 Share Certificates; Representation by Key Employee Participants; Registration Requirements. In addition to the restrictions imposed pursuant to Article VII hereof, all certificates for Shares
delivered under the Plan, whether pursuant to any Award or the exercise thereof or otherwise, shall be subject to such stop transfer orders and other restrictions as the Committee may deem advisable under the Plan or the rules, regulations, and
other requirements of the Securities Exchange Commission, any stock exchange or other market upon which such Shares are then listed or traded, and any applicable federal or state securities laws, and the Committee may cause a legend or legends to be
put on any such certificates to make appropriate reference to such restrictions. The Committee may require each Participant or other person who acquires Shares under the Plan to represent to the Company in writing that such person is acquiring the
Shares without a view to the distribution thereof. 

  
 9 

 11.10 Amendments to Awards. The Committee may, in whole or in part, waive any
conditions or other restrictions with respect to, and may amend, alter, suspend, discontinue, or terminate any Award granted under the Plan to a Key Employee Participant or Advisor Participant (and the Board may so do with respect to any
Non-Employee Director), prospectively or retroactively, but no such action shall impair the rights of any Participant without his or her consent except as provided in Sections 4.3 and 8.1(b). Notwithstanding the foregoing, unless determined
otherwise by the Committee, any such amendment shall be made in a manner that will enable an Award intended to be exempt from Code Section 409A to continue to be so exempt, or to enable an Award intended to comply with Code Section 409A to
continue to comply. 
 11.11 Correction of Defects, Omissions, and Inconsistencies. The Committee may correct any defect,
supply any omission, or reconcile any inconsistency in any Award or Award Agreement in the manner and to the extent it shall deem desirable to carry the Plan into effect. 

 

	Article XII.	Amendment and Termination 

12.1 Amendment. The Board may amend, alter, suspend or discontinue the Plan or any part thereof at any time it is deemed
necessary or appropriate; provided, however, that no amendment, alteration, suspension or discontinuation of the Plan shall in any manner (except as otherwise provided in this Article XII) adversely affect any Award granted and then outstanding
under the Plan, without the consent of the Participant; and provided, further, that shareholder approval of any amendment of the Plan shall also be obtained if otherwise required by (i) the Code or any rules promulgated thereunder (in order to
enable the Company to comply with the provisions of Section 162(m) of the Code so that the Company can deduct compensation in excess of the limitation set forth therein), or (ii) the listing requirements of the principal securities
exchange or market on which the Shares are then traded (in order to maintain the listing or quotation of the Shares thereon). Notwithstanding the foregoing, unless determined otherwise by the Committee, any such amendment shall be made in a manner
that will enable an Award intended to be exempt from Code Section 409A to continue to be so exempt, or to enable an Award intended to comply with Code Section 409A to continue to comply. 

12.2 Termination. The Board shall have the right and the power to terminate the Plan at any time. No Award shall be granted under
the Plan after the termination of the Plan, but the termination of the Plan shall not have any other effect and any Award outstanding at the time of the termination of the Plan may be exercised after termination of the Plan at any time prior to the
expiration date of such Award to the same extent such Award would have been exercisable had the Plan not terminated. 

12.3 Re-pricing and Backdating Prohibited. Notwithstanding anything in the Plan to the contrary, and except for adjustments
provided in Section 4.3, neither the Committee nor any other person may decrease the exercise price for any outstanding Option, or the grant price for any Stock Appreciation Right, in each case which are intended to be exempt from Code
Section 409A, after the date of grant nor allow a Participant to surrender an outstanding Option or Stock Appreciation Right to the Company as consideration for the grant of a new Option or Stock Appreciation Right with a lower exercise price
or grant price, respectively, unless such action is considered the grant of a new Award under Code Section 409A and the exercise or grant price of such new Award is at least 100% of the Fair Market Value of a Share on the new grant date. In
addition, the Committee may not make a grant of an Option or Stock Appreciation Right with a grant date that is effective prior to the date the Committee takes action to approve such Award. 

 

	Article XIII.	General Provisions 

 13.1
Effective Date of the Plan. The Plan was effective on May 7, 2001, the date that the Company’s shareholders originally approved the Plan. 
 13.2 Term of Plan. The term of the Plan shall be indefinite except that no Incentive Stock Option Award shall be granted under the Plan after March 28, 2011. However, unless otherwise
expressly provided in the Plan or in an applicable Award Agreement, any Incentive Stock Option Award theretofore granted may extend beyond such date, and, to the extent set forth in the Plan, the authority of the Committee to amend, alter, adjust,
suspend, discontinue, or terminate any such Award, or to waive any conditions or restrictions with respect to any such Award, and the authority of the Board to amend the Plan, shall extend beyond such date. 

  
 10 

 13.3 Governing Law. The Plan and all determinations made and actions taken pursuant
to the Plan shall be governed by the laws of the state of Florida and applicable federal laws. 
 13.4 Unfunded Status of
Plan. Unless otherwise determined by the Committee, the Plan shall be unfunded and shall not create (or be construed to create) a trust or a separate fund or funds. The Plan shall not establish any fiduciary relationship between the Company and
any Key Employee Participant, Non-Employee Director Participant, Advisor or other person. To the extent any person holds any right by virtue of a grant under the Plan, such right (unless otherwise determined by the Committee) shall be no greater
than the right of an unsecured general creditor of the Company. 
 13.5 Headings. Section headings are used in the Plan
for convenience only, do not constitute a part of the Plan, and shall not be deemed in any way to be material or relevant to the construction or interpretation of the Plan or any provision thereof. 

13.6 Severability. Whenever possible, each provision in the Plan and every Award and right at any time granted under the Plan
shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of the Plan or any Award at any time granted under the Plan shall be held to be prohibited by or invalid under applicable law, then
(a) such provision shall be deemed amended to accomplish the objectives of the provision as originally written to the fullest extent permitted by law and (b) all other provisions of the Plan and every other Award or right at any time
granted under the Plan shall remain in full force and effect. 
 13.7 Code Section 409A. The provisions of Code
Section 409A are incorporated herein by reference to the extent necessary for any Award that is subject to Code Section 409A to comply therewith. 

  
 11Amendment No. 2 to Rights Agreement, dated June 14, 2011

 Exhibit 4.1 
 AMENDMENT NO. 2 TO RIGHTS AGREEMENT 
 Amendment No. 2, dated as of
June 14, 2011 (this “Amendment”), to the Rights Agreement, dated as of August 12, 2008, as amended on April 28, 2011 (the “Rights Agreement”), by and between SunPower Corporation (the
“Company”) and Computershare Trust Company, N.A., as rights agent (the “Rights Agent”). Capitalized terms used without other definition in this Amendment are used as defined in the Rights Agreement.

 RECITALS 
 WHEREAS, the Company and Total Gas & Power USA, SAS, a société par actions simplifiée organized under the laws of the Republic of France, have entered into a Tender
Offer Agreement, dated as of April 28, 2011 (as it may be amended or supplemented from time to time, the “Tender Offer Agreement”), and an Affiliation Agreement, dated as of April 28, 2011 (as it may be amended or
supplemented from time to time, the “Affiliation Agreement”); 
 WHEREAS, the Board of Directors of the
Company has determined that it is in the best interests of the Company and its stockholders to amend the Rights Agreement as set forth in this Amendment; 
 WHEREAS, no Distribution Date has occurred and no Person is an Acquiring Person; 

WHEREAS, pursuant to Section 27 of the Rights Agreement, prior to the time at which the Rights cease to be redeemable pursuant to
Section 23 of the Rights Agreement, and subject to the penultimate sentence of Section 27 of the Rights Agreement, the Company may in its sole and absolute discretion, and the Rights Agent will if the Company so directs, supplement or
amend any provision of the Rights Agreement in any respect without the approval of any holders of Rights or Common Shares; and 

WHEREAS, pursuant to the terms of the Rights Agreement and in accordance with Section 27 thereof, the Company has directed that the
Rights Agreement be amended as set forth in this Amendment, and hereby directs the Rights Agent to execute this Amendment. 

AGREEMENT 

NOW THEREFORE, in consideration of the foregoing and the mutual agreements set forth in the Rights Agreement and in this Amendment, the
parties hereto hereby amend the Rights Agreement as follows: 
 1. Section 1(a) of the Rights Agreement is hereby amended
and restated in its entirety as follows: 
 “(a) “Acquiring Person” means any Person (other than the
Company, any Related Person or any Restricted Person) who or which, together with all Affiliates and Associates of such Person, is or becomes the Beneficial Owner of (i) during the Terra Stockholder Approval Period (as defined in the
Affiliation Agreement), 10% or more of the Total 

  
 1 

 
Current Voting Power of the Company then in effect or (ii) other than during the Terra Stockholder Approval Period, (A) 20% or more of the then-outstanding Common Shares or (B) 20%
or more of the then-outstanding Class B Common Shares; provided, however, in each case that a Person will not be deemed to have become an Acquiring Person solely as a result of a reduction in the number of Common Shares or Class B
Common Shares outstanding unless and until such time as (A) such Person or any Affiliate or Associate of such Person thereafter becomes the Beneficial Owner of additional Common Shares or Class B Common Shares representing 1% or more of the
then-outstanding Common Shares or Class B Common Shares, as the case may be, other than as a result of a stock dividend, stock split or similar transaction effected by the Company in which all holders of Common Shares or Class B Common Shares, as
the case may be, are treated equally, or (B) any other Person who is the Beneficial Owner of Common Shares or Class B Common Shares representing 1% or more of the then-outstanding Common Shares or Class B Common Shares, as the case may be,
thereafter becomes an Affiliate or Associate of such Person. Notwithstanding the foregoing, if the Board of Directors of the Company determines in good faith that a Person who would otherwise be an “Acquiring Person” as defined pursuant to
the foregoing provisions of this Section 1(a) has become such inadvertently, and such Person divests as promptly as practicable or agrees in writing with the Company to divest, a sufficient number of Common Shares or Class B Common Shares, as
the case may be, so that such Person would no longer be an “Acquiring Person” as defined pursuant to the foregoing provisions of this Section 1(a), then such Person shall not be deemed to be an “Acquiring Person” for any
purposes of this Agreement.” 
 2. Section 1 of the Rights Agreement is hereby amended by adding the following new
Sections 1(nn), 1(oo) and 1(pp) immediately following Section 1(mm): 
 “(nn) “Affiliation
Agreement” means the Affiliation Agreement, dated as of April 28, 2011, as it may be amended or supplemented from time to time, by and between Terra and the Company. 

(oo) “Restricted Person” means, during the Standstill Period (as defined in the Affiliation Agreement),
(i) Terra, any Terra Controlled Corporation (as defined in the Affiliation Agreement) and any member of the Terra Group (as defined in the Affiliation Agreement), in each case only for so long as none of Terra, any Terra Controlled Corporation
or any member of the Terra Group has breached any of its obligations set forth in Section 2.1 or Section 2.3 of the Affiliation Agreement (subject to any applicable cure period under Section 2.1(a)(y) of the Affiliation Agreement), or
(ii) a Transferee (as defined in the Affiliation Agreement) who has acquired Common Shares from any member of the Terra Group in compliance with Sections 2.3(a) and 2.3(b) of the Affiliation Agreement, but only for so long as (A) such
Transferee has not breached any of its obligations set forth in Section 2.3 of the Affiliation Agreement, (B) such Transferee or any Affiliate or Associate of such Transferee does not thereafter become the Beneficial Owner of any Common
Shares in excess of the number of Common Shares Beneficially Owned prior to such acquisition from Terra plus such Common Shares that 

  
 2 

 
are acquired (1) from Terra pursuant to Sections 2.3(a) and 2.3(b) of the Affiliation Agreement or (2) in any Transferee Tender Offer or Transferee Merger (each as defined in the
Affiliation Agreement), in each case other than as a result of a stock dividend, stock split or similar transaction effected by the Company in which all holders of Common Shares are treated equally, and (C) no other Person who is the Beneficial
Owner of Common Shares thereafter becomes an Affiliate or Associate of such Transferee. 
 (pp) “Total Current Voting
Power” means the total number of votes which may be cast in the election of members of the Board of Directors of the Company if all securities entitled to vote in the election of such directors are present and voted.” 

3. Exhibits C and D to the Rights Agreement are deemed to be amended in a manner consistent with this Amendment. 

4. This Amendment will be deemed to be a contract made under the internal substantive laws of the State of Delaware and for all purposes
will be governed by and construed in accordance with the internal substantive laws of such State applicable to contracts to be made and performed entirely within such State. 
 5. The Rights Agreement will not otherwise be supplemented or amended by virtue of this Amendment, and will remain in full force and effect. 

6. This Amendment may be executed in any number of counterparts (including by fax and .pdf) and each of such counterparts will for all
purposes be deemed to be an original, and all such counterparts will together constitute but one and the same instrument. 
 7.
This Amendment will be effective as of, and immediately prior to, the Offer Closing (as defined in the Tender Offer Agreement), and all references to the Rights Agreement will, from and after such time, be deemed to be references to the Rights
Agreement as amended hereby. A signature to this Amendment transmitted electronically will have the same authority, effect and enforceability as an original signature. 
 8. The undersigned officer of the Company, being duly authorized on behalf of the Company, hereby certifies to the Rights Agent in his or her capacity as an officer on behalf of the Company that this
Amendment is in compliance with the terms of Section 27 of the Rights Agreement. The Company will notify the Rights Agent promptly after this Amendment becomes effective to confirm such effectiveness. 

9. By its execution and delivery hereof, the Company directs the Rights Agent to execute this Amendment. 

  
 3 

 IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed
as of the effective time stated above. 
  

			
	SUNPOWER CORPORATION
		
	By:	 	 /s/ Thomas H. Werner

		 	Name: Thomas H. Werner
		 	Title: Chief Executive Officer
	
	COMPUTERSHARE TRUST COMPANY, N.A.
		
	By:	 	 /s/ Dennis V. Moccia

		 	Name: Dennis V. Moccia
		 	Title: Manager, Contract Administration

 [Signature Page to Amendment No. 2 to Rights Agreement]

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