Document:

Unassociated Document

EXHIBIT 10.1

Execution Version

Fourth Amendment to Amended and Restated Credit Agreement

This Fourth Amendment to Amended and Restated Credit Agreement (this “Amendment”), dated as of February 10, 2010, is among SunPower Corporation, a Delaware corporation (“SunPower”), SunPower North America, LLC, a Delaware limited liability company (“SunPowerNA”), SunPower Corporation, Systems, a Delaware corporation (“SunPower Systems”), and Wells Fargo Bank, National Association (“Bank”).

Recitals

Whereas SunPower and Bank have previously entered into that certain Amended and Restated Credit Agreement, dated as of March 20, 2009 (as amended, amended and restated and/or otherwise supplemented or modified prior to the date hereof (including, without limitation, pursuant to that certain First Amendment to Amended and Restated Credit Agreement, dated as of April 17, 2009, that certain Second Amendment to Amended and Restated Credit Agreement, dated as of August 31, 2009, and that certain Third Amendment to Amended and Restated Credit Agreement, dated as of December 22, 2009 (the “Third Amendment”), and pursuant to that certain Consent to New Indebtedness, dated as of April, 2009 (the “Consent”)), the “Existing Credit Agreement”);

Whereas each of SunPower, SunPowerNA and SunPower Systems has requested that Bank, subject to and upon the terms and conditions contained herein, amend the Existing Credit Agreement; and

Whereas Bank is willing, subject to and upon the terms and conditions contained herein, to amend the Existing Credit Agreement;

Agreement

Now, therefore, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

Section 1.               Definitions.  Each capitalized term used but not otherwise defined herein has the meaning ascribed thereto in the Existing Credit Agreement.

Section 2.       Amendments to Credit Agreement.  Subject to Section 4 hereof and notwithstanding anything to the contrary contained in the Existing Credit Agreement, the Existing Credit Agreement is hereby amended as follows:

(a)      The covenant of SunPower set forth in Section 3(c) of the Third Amendment is hereby amended by deleting the reference to “February 16, 2010” contained therein and by substituting therefor a reference to “March 16, 2010”; provided that, notwithstanding Section 4 hereof, the foregoing amendment shall not become effective unless, on or before February 15, 2010:  (i) any Event of Default under Section 6.1(d) of the Existing Credit Agreement arising by virtue of the Specified Events of Default (as that term is defined in the Third Amendment) has been waived by the party(ies) to the affected contract(s) or instrument(s) under which the default(s) exist through March 16, 2010 or permanently; and (ii) the time period by which SunPower must comply with any covenant contained in any such contract(s) or instrument(s) that is identical to or substantially similar to the covenant of SunPower contained in Section 3(c) of the Third Amendment has been extended to a date not earlier than March 16, 2010, in each of the 

Fourth Amendment to

Amended and Restated Credit Agreement

  

  

  

foregoing cases, pursuant to a Modification that does not:  (A) contain terms that are determined by Bank to be more restrictive or onerous than the terms contained in the Third Amendment and this Amendment (taken together) and (B) result in an Event of Default or an event which, with the giving of notice or the lapse of time or both, would constitute an Event of Default.

(b)      Section 5.3 of the Existing Credit Agreement is hereby amended and restated to read in full as follows:

SECTION 5.3.OTHER INDEBTEDNESS.  Create, incur, assume or permit to exist any indebtedness or liabilities resulting from borrowings, loans or advances, whether secured or unsecured, matured or unmatured, liquidated or unliquidated, joint or several, except:  (a) the liabilities of Borrower or such Third Party Obligor to Bank; and (b) Permitted Indebtedness.  “Permitted Indebtedness” shall mean without duplication of amounts:  (i) indebtedness of Borrower or any Third Party Obligor to Borrower or any Subsidiary in the ordinary course of business; (ii) indebtedness in favor of Solon AG and its affiliates under the Amended and Restated Supply Agreement, dated as of April 14, 2005, as amended, between Borrower and Solon AG fur Solartechnik; (iii) indebtedness in favor of customers and suppliers of the Borrower and Third Party Obligors in connection with supply and purchase agreements in an aggregate principal amount not to exceed Two Hundred Million Dollars ($200,000,000.00) at any one time and any refinancings, refundings, renewals or extensions thereof (without shortening the maturity thereof or increasing the principal amount thereof); (iv) 1.25% senior convertible debentures issued in February 2007 in the aggregate principal amount of Two Hundred Million Dollars ($200,000,000.00) plus accrued interest thereon; (v) obligations owed to bonding companies in connection with obligations under bonding contracts (however titled) entered into in the ordinary course of business, pursuant to which such bonding companies issue bonds or otherwise secure performance of Borrower and Subsidiaries for the benefit of their customers and contract counterparties; (vi) 0.75% senior convertible debentures issued in August 2007 in the aggregate principal amount of Two Hundred Twenty-Five Million Dollars ($225,000,000.00) plus accrued interest thereon; (vii) indebtedness to Union Bank of California (“UBOC”) consisting of an unsecured term loan in an principal amount not to exceed $30,000,000.00, provided that (1) prior to Borrower or any Third Party Obligor entering into any definitive or binding agreement with respect to any such indebtedness, Bank shall have reviewed and approved in writing all material terms and conditions of such indebtedness, and (2) the loan agreement and other definitive agreements (the “UBOC Documents”) are in all material respects consistent with such terms and conditions; (viii) guaranties and similar obligations that are otherwise permitted under Section 5.4; (ix) loans, advances and investments that are otherwise permitted under Section 5.5; (x) indebtedness in respect of the Debentures Offering (as that term is defined in that certain Consent to New Indebtedness, dated as of April, 2009, between Borrower and Bank (the “Consent”) and Hedging Transactions (as that term is defined in the Consent); (xi) indebtedness, 

  

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in an aggregate principal amount not to exceed Twenty Million Dollars ($20,000,000.00) outstanding at any time, incurred by Borrower and constituting part of the Total Non-Stock Consideration paid by Borrower to consummate the Specified Acquisition Transaction (as hereinafter defined) (such indebtedness, the “Specified Acquisition Transaction Indebtedness”); (xii) additional indebtedness of Borrower and Third Party Obligors in an aggregate principal amount not to exceed Twenty-Five Million Dollars ($25,000,000.00) outstanding at any one time; and (xiii) accrued interest on any of the foregoing.  For clarity, Bank and Borrower agree that Borrower’s or any Subsidiary’s trade payables incurred in the ordinary course of business do not constitute indebtedness prohibited or restricted by the terms of this Section 5.3.  Borrower shall not agree to any amendment of or departure from any terms and conditions of the UBOC Documents or the IFC Documents (as hereinafter defined) which would render the terms thereof more restrictive or onerous to Borrower, any Third Party Obligor or SunPower Philippines Manufacturing Limited than the material terms and conditions reviewed and approved by Bank in writing.  In addition, Borrower shall not amend, supplement or otherwise modify (or permit any of the foregoing) or request or agree to any consent or waiver under (any of the foregoing, a “Modification”) any evidence of Permitted Indebtedness without the prior written consent of Bank, except to the extent that such Modification of Permitted Indebtedness does not result and could not reasonably be expected to result in an Event of Default or any event which, with the giving of notice, the lapse of time or both, would constitute an Event of Default.

(c)      Clauses (iv) and (v) of Section 5.4 of the Existing Credit Agreement are hereby amended and restated to read in full as follows:

(iv) unsecured guarantees of indebtedness of SunPower Philippines Manufacturing Limited owing to International Finance Corporation (“IFC”) in an aggregate amount not to exceed, at any time, Seventy-Five Million Dollars ($75,000,000.00), provided that (1) prior to Borrower or SunPower Philippines Manufacturing Limited entering into any definitive or binding agreement with respect to any such guaranty and/or indebtedness, Borrower shall have provided to Bank, and Bank shall have reviewed and approved in writing, all material terms and conditions of such guaranty and indebtedness, and (2) the guaranty, loan agreement and other definitive agreements (the “IFC Documents”) are in all material respects consistent with the material terms and conditions thereof approved in writing by Bank; and (v) guaranties of other Permitted Indebtedness.

(d)      Clauses (d) and (e) of Section 5.5 of the Existing Credit Agreement are hereby amended and restated to read in full as follows:

(d)           investments which constitute Specified Transactions permitted pursuant to Section 5.8, (e) loans, advances or investments that constitute Permitted Indebtedness,

  

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(e)      Notwithstanding the provisions of Section 5.8 of the Existing Credit Agreement, so long as no Event of Default or event which, with the giving of notice, the lapse of time or both, would constitute an Event of Default exists or would result by virtue thereof, SunPower may:  (i) enter into an agreement pertaining to a Specified Transaction involving the acquisition by SunPower of all of the issued and outstanding equity interests of an unaffiliated European entity (which owns a solar project development pipeline and which is the indirect owner of all of the issued and outstanding equity interests in a solar photovoltaic project identified to Bank as “M24” (“M24”)) for Total Non-Stock Consideration (including the Specified Acquisition Transaction Indebtedness) in an aggregate amount not to exceed Three Hundred Million Dollars ($300,000,000.00) (such Specified Transaction, the “Specified Acquisition Transaction”); and (ii) consummate the Specified Acquisition Transaction so long as:  (A) prior to the consummation of the Specified Acquisition Transaction, SunPower provides Bank with such information as Bank may reasonably request:  (1) regarding the identity of the target of the Specified Acquisition Transaction and of M24; and (2) to assess Borrower’s pro forma compliance with all financial and other covenants set forth in the Credit Agreement for each of the four consecutive fiscal quarters of SunPower following the consummation of the Specified Acquisition Transaction; and (B) upon the closing of the Specified Acquisition Transaction, SunPower provides Bank with a certificate addressed to Bank, duly executed and delivered by the chief executive officer, president, chief financial officer, treasurer or controller of SunPower, detailing pro forma compliance with all financial covenants set forth in the Credit Agreement for each of the four consecutive fiscal quarters of SunPower following the consummation of the Specified Acquisition Transaction.

(f)       Section 5.6 of the Existing Credit Agreement is hereby amended and restated to read in full as follows:

SECTION 5.6.DIVIDENDS, DISTRIBUTIONS.  Declare or pay any dividend or distribution either in cash, stock or any other property on Borrower’s stock now or hereafter outstanding, nor redeem, retire, repurchase or otherwise acquire any shares of any class of Borrower’s stock now or hereafter outstanding (other than repurchases or the like from employees, consultants, officers and directors in connection with Borrower’s stock plan); nor agree (or cause or permit any Subsidiary (other than M24) to agree) with any third party to prohibit, condition or restrict the payment of dividends and distributions by such Subsidiary to Borrower or to another Subsidiary.

(g)           The Line of Credit Note and Section 1.1(a) of the Existing Credit Agreement are hereby amended by deleting any reference to “March 27, 2010” contained therein and by substituting therefor a reference to “April 26, 2010.”

Section 3.         Representations and Warranties.  Each of SunPower, SunPowerNA and SunPower Systems hereby represents and warrants to Bank as follows:

(a)      No Event of Default or any event which, with the giving of notice, the lapse of time or both, would constitute an Event of Default has occurred and is continuing (or would result from the amendments to the Existing Credit Agreement proposed to be effected hereby).

(b)     The execution, delivery and performance by each of SunPower, SunPowerNA and SunPower Systems of this Amendment have been duly authorized by all necessary corporate or other action and do not and will not require any registration with, consent or approval of, or notice to or action by, any person or entity in order to be effective and enforceable.

  

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(c)      All representations and warranties of each of SunPower, SunPowerNA and SunPower Systems contained in each Loan Document to which each is a party are true, correct and complete in all material respects (except to the extent such representations and warranties expressly (i) refer to an earlier date, in which case they are true, correct and complete as of such earlier date and (ii) are inaccurate due to the Specified Financial Statement Accounting Errors (as that term is defined in the Third Amendment), which inaccuracy is expressly addressed by the Third Amendment).

Section 4. Effectiveness.  This Amendment shall become effective as of the date first set forth above (such date, the Effective Date”) upon the satisfactions of the following conditions:

(a)            Bank shall have received an original of this Amendment, duly executed and delivered by each of SunPower, SunPowerNA and SunPower Systems;

(b)      each of the representations and warranties of SunPower, SunPowerNA and SunPower Systems contained in Section 3 of this Amendment shall be true, correct and complete; and

(c)      Bank shall have received in immediately available U.S. Dollars, all out-of-pocket costs and expenses (including reasonable attorneys’ fees and costs) incurred by Bank in connection with the Specified Events of Default, this Amendment and the transactions contemplated hereby and invoiced to SunPower prior to the date on which this Amendment is otherwise to become effective; provided that the failure to invoice any such amounts to SunPower prior to such date shall not preclude Bank from seeking reimbursement of such amounts, or excuse SunPower from paying or reimbursing such amounts, following the  Effective Date.

Section 5.         General Provisions.

(a)      Each of SunPower, SunPowerNA and SunPower Systems specifically acknowledges and agrees that:  (i) the execution and delivery by Bank of this Amendment shall not be deemed to create a course of dealing or otherwise obligate Bank to execute similar agreements under the same, similar or different circumstances in the future; (ii) Bank does not have any obligation to SunPower or any Third Party Obligor to further amend provisions of the Credit Agreement or the other Loan Documents or to grant the same, similar or different waivers of any future Event of Default (or event which, with the giving of notice, the lapse of time or both, would constitute an Event of Default); and (iii) except as expressly set forth herein, the Existing Credit Agreement and each of the other Loan Documents, and the representations, warranties, covenants, understandings and agreements of SunPower and each Third Party Obligor thereunder, shall remain unchanged and in full force and effect.

(b)      This Amendment shall be binding upon and inure to the benefit of the parties to the Existing Credit Agreement and their respective successors and assigns.

(c)      This Amendment may be executed in any number of counterparts, each of which shall be deemed an original, but all such counterparts together shall constitute but one and the same instrument.  Each of the parties hereto understands and agrees that this document (and any other document required herein) may be delivered by the other party thereto either in the form of an executed original or an executed original sent by telefacsimile or electronic transmission to be followed promptly by mailing of a hard copy original, and that receipt by Bank by electronic mail 

  

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or telefacsimile transmission of a document purportedly bearing the signature of any party hereto shall bind such party with the same force and effect as the delivery of a hard copy original.

(d)           This Amendment contains the entire and exclusive agreement of the parties to the Existing Credit Agreement with reference to the matters discussed herein.  This Amendment supersedes all prior drafts and communications with respect hereto.  This Amendment may not be amended except in accordance with the provisions of the Credit Agreement.

(e)      Each reference to “this Agreement,” “hereof,” “hereunder,” “herein” and “hereby” and each other similar reference contained in the Existing Credit Agreement, and each reference to the “Credit Agreement” and each other similar reference in the other Loan Documents, shall from and after the Effective Date, refer to the Existing Credit Agreement, as amended hereby.  This Amendment and the Existing Credit Agreement shall be read together, as one document.  This Amendment is a Loan Document.

(f)            This Amendment is subject in all respects to Section 7.10 and 7.11 of the Existing Credit Agreement, each of which is incorporated herein, mutatis mutandis.

[Document continues with signature pages.]

  

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In Witness Whereof, the parties hereto have caused this Fourth Amendment to Amended and Restated Credit Agreement to be duly executed as of the date first written above.

	  	
SunPower:

	  	  	  
	  	
SunPower Corporation,

	  	
a Delaware corporation

	  	  	  
	  	
By:

	
/s/ Dennis V. Arriola

	  	
Name:

	
Dennis V. Arriola

	  	
Title:

	
SVP and CFO

Fourth Amendment to

Amended and Restated Credit Agreement

  

S-1

  

 

	  	
Third Party Obligors:

	  	  	  
	  	
SunPower North America, LLC,

	  	
a Delaware limited liability company

	  	  	  
	  	
By:

	
/s/ Dennis V. Arriola

	  	
Name:

	
Dennis V. Arriola

	  	
Title:

	
SVP and CFO

	  	  	  
	  	  	  
	  	
SunPower Corporation, Systems,

	  	
a Delaware corporation

	  	  	  
	  	
By:

	
/s/ Dennis V. Arriola

	  	
Name:

	
Dennis V. Arriola

	  	
Title:

	
SVP and CFO

Fourth Amendment to

Amended and Restated Credit Agreement

  

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Bank:

	  
	  	  	  
	  	
Wells Fargo Bank, National Association,

	  	
a national banking association

	  	  	  
	  	
By:

	
/s/ Matt Servatius

	  	
Name:

	
Matt Servatius

	  	
Title:

	
Vice President

Fourth Amendment to

Amended and Restated Credit Agreement

 

 

S-3ex10-11.htm

EXIBIT 10.11

SUNPOWER CORPORATION

OUTSIDE DIRECTOR COMPENSATION POLICY

Effective August 6, 2009; amended December 11, 2009; amended April 1, 2010

 

1.             General.  This Outside Director Compensation Policy (the “Policy”), which is adopted by the Board of Directors (the “Board”) of SunPower Corporation, a Delaware corporation (the “Company”), sets forth the cash and equity-based compensation that shall be payable to eligible non-employee members of the Board (“Outside Directors”) commencing with the fiscal quarter ending September 27, 2009.  This Policy is intended to replace and supersede in its entirety the compensation program applicable to Outside Directors that is in effect as of the effective date of this Policy, including, without limitation, the (i) cash compensation in effect as of the date hereof and (ii) the automatic equity-based awards that would otherwise in the future be granted to Outside Directors pursuant to Section 4(b) of the Second Amended and Restated SunPower Corporation 2005 Stock Incentive Plan, as amended from time to time (the “Stock Plan”).  The cash and equity-based compensation described in this Policy shall be paid or be made, as applicable, automatically and without further action of the Board, to each Outside Director who may be eligible to receive such compensation.  This Policy shall remain in effect until it is revised or rescinded by further action of the Board.  The equity-based compensation shall consist of awards covering shares of Class A Common Stock of the Company, par value $0.001 per share (the “Common Stock”), that are granted pursuant to and subject to the provisions of the Stock Plan.

 

2.             Annual Fees.  Each Outside Director shall be eligible to receive an annual fee, payable on a quarterly basis as set forth below, for services performed for the Board in accordance with the following provisions (the “Annual Fees”):

 

(i) Outside Directors. Each Outside Director (other than Chairs of Board committees) shall be eligible to receive an Annual Fee for the Company’s fiscal year equal to $275,000 for service on the Board.

 

(ii) Chairs. Each Outside Director who also serves as Chair of one or more Committees of the Board shall be eligible to receive an Annual Fee for the Company’s fiscal year equal to $300,000 for service on the Board and for service as a Chair of a Committee.  As used in this Policy, “Committee” refers any of the Audit Committee, the Compensation Committee, or the Nominating and Corporate Governance Committee of the Board.

 

(iii) Chairman.  The Chairman of the Board shall be eligible to receive an Annual Fee for the Company’s fiscal year equal to $350,000 for service as the Chairman of the Board and for service, if any, as a Chair of a Committee.

 

(iv) Lead Director.  In addition to any other applicable compensation provided under the foregoing provisions of this Section 2, an Outside Director who also serves as the “lead director” appointed by the Board shall be eligible to receive an Annual Fee for the Company’s fiscal year equal to $15,000 for service as the lead director.

  

 

  

Any Outside Director first appointed or elected to the Board shall, upon such appointment or election, be eligible to receive a prorated portion of the applicable Annual Fee based on the number of fiscal quarters (including partial fiscal quarters) that the Outside Director was in service.

 

3.             Timing of Payment.  The Annual Fees shall be paid in the form set forth in Section 4 hereof on a quarterly basis (i) with respect to the cash compensation described in Section 4(i), on or about the date of the quarterly Board meeting of the second month of the applicable fiscal quarter with respect to which the Outside Director is serving as a member of the Board and to which the compensation relates, and (ii) with respect to the Stock Units described in Section 4(ii), on the 11th day of the second month of the applicable fiscal quarter with respect to which the Outside Director is serving as a member of the Board and to which the compensation relates, or, if no publicly traded sale of Common Stock occurred on such date, on the first trading date immediately after such date during which a sale occurred.

 

4.             Form of Payment of Annual Fees. The Annual Fees set forth in Section 2 hereof shall be paid to the eligible Outside Directors in the form of cash and Awards of Stock Units (as such terms are defined in the Stock Plan) in the following percentages:

 

(i)  Cash: Twenty-percent (20%) of the total Annual Fee payable to each eligible Outside Director other than the Chairman and other than pursuant to Section 2(iv) shall be paid in the form of cash.  One-hundred percent (100%) of the Annual Fee payable to the lead director pursuant to Section 2(iv) shall be paid in cash.  The cash payment shall be reduced by any taxes or social security contributions due on the income.

 

(ii)  Stock Units: Eighty-percent (80%) of the total Annual Fee payable to each eligible Outside Director other than the Chairman and other than pursuant to Section 2(iv) shall be paid in the form of an Award of Stock Units made under the Stock Plan.  One-hundred percent (100%) of the total Annual Fee payable to the Chairman shall be paid in the form of an Award of Stock Units made under the Stock Plan.

 

(A) The number of Stock Units subject to the Award that shall be granted for the applicable fiscal quarter shall be calculated by dividing the amount payable for the quarter in the form of Stock Units by the Fair Market Value of a share of Common Stock, less any taxes or social security contributions due on the income, which may be withheld by the Company.  For each of the four consecutive fiscal quarters ending with the second fiscal quarter of 2010 (i.e., ending on July 4, 2010) the amount payable on each quarterly payment date under this Section as Stock Units to each Outside Director who was also granted an annual Stock Unit Award in connection with the 2009 annual meeting of stockholders pursuant to Section 4(b) of the Stock Plan shall first be reduced by an amount equal to the product of the Fair Market Value of a share of Common Stock, multiplied by 1,000 (or 2,000 in the case of the Chairman of the Board) before the number of Stock Units is calculated in accordance with the previous sentence.  “Fair Market Value” for purposes of this Section 4 shall mean the closing price of the Common Stock on the Nasdaq Global Select Market on the payment date set forth in Section 3, or if no publicly traded sale of Common Stock occurred on such 

  

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date, the first trading date immediately after such date during which a sale occurred.  Any fractional shares resulting from this calculation shall be paid in cash.

 

(B) The grant date for purpose of the Award of Stock Units shall be the date of payment.

 

(C) The Award of Stock Units shall be fully vested as of the date of grant.

 

(D) The Stock Units shall be settled as soon as practicably possible, but in any event within seven (7) days, following the date of grant (vesting date) in the form of shares of Common Stock.

 

(E) Other than Section 4(b) of the Stock Plan (which is superseded in its entirety by the terms of this Policy), all applicable terms of the Stock Plan apply to this Policy as if fully set forth herein, and all Awards of Stock Units under this Policy are subject in all respects to the terms of the Stock Plan.

 

(F) All share numbers set forth in this Policy shall be adjusted in accordance with the capitalization adjustment provision set forth in Section 11(a) of the Stock Plan.

 

(G) The grant of any Award under this Policy shall be made solely by and subject to the terms set forth in a written stock unit agreement in a form, consistent with the terms of the Stock Plan, approved by Board (or the Compensation Committee thereof) and duly executed by an executive officer of the Company.

 

5.             Policy Subject to Amendment, Modification and Termination.  This Policy may be amended, modified or terminated by the Board in the future at its sole discretion, provided that no such action that would materially and adversely impact the rights with respect to Annual Fees payable in the fiscal quarter during which the Outside Director is then performing services shall be effective without the consent of the affected Outside Director.

 

6.             Effectiveness.  This Policy shall become effective as of August 6, 2009.

 

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