Document:

SunPower 2006 Key Employee Bonus Plan

 Exhibit 10.29 
 SUNPOWER 
 2006 KEY EMPLOYEE BONUS PLAN (KEBP) 
 Article 1—Plan Objective 
  

	 	1.1	The objective of this Key Employee Bonus Plan is to provide incentives to key employees of the Company based on SunPower key milestone achievement, the individual’s performance
against set individual Key Initiatives (KIs), and the company’s PBT and sales performance against Annual Operating Plan (AOP). 

 Article 2—Effective Date 
  

	 	2.1	This agreement will become effective January 2, 2006 for the plan period of fiscal year 2006. The plan period for fiscal year 2006 covers January 2, 2006 to
January 1, 2007. 

 Article 3—Eligibility for Plan Participation 
  

	 	3.1	Prior to or shortly after the commencement of each Plan Period, members of SunPower Executive Staff will recommend to the President/CEO for approval proposed participants for the
plan period and their incentive levels. 

 3.1.1 Full-time employees with titles of Director/Member of Technical Staff and
above are eligible for Plan participation but subject to approval by the President/CEO. Any exception to eligibility based on pay grade criteria must be reviewed and approved by the CEO. 
  

	 	3.2	Participants will be notified of their eligibility at the beginning of each plan period or shortly thereafter. 

  

	 	3.3	Newly hired eligible employees may be added as participants during the plan period. Other key employees who are currently not plan participants may be considered for participation
at the beginning of the plan period if eligibility requirements are met. 

  

	 	3.4	Changes to the plan participant list and exceptions require the approval of the President/CEO. Changes in incentive levels for current participants require the approval of the
President/CEO. Discontinuation of KEPB participation requires the approval of the President/CEO. 

 Article 4—Bonus
Plans and Calculations 
  

	 	4.1	Each plan participant will be given an incentive level expressed as a percent of Base Salary. This represents the target bonus. There are 4 incentive levels in this program;
participation begins at 20% for most entrants into KEPB. The incentive levels are 80% Plan, 50% Plan, 30% Plan and 20% Plan. 

  

	 	4.2	The participant’s actual bonus attainment is determined by the participant’s score from the following factors: 

  

	
	 Bonus Plan
Factors

	 a. Total Company PBT performance for 2006 (PBT factor)

	 b. Total Company sales performance for 2006 (sales factor)

	 c. Company quarterly milestone achievement

	 d. Performance against individual Key Initiatives (KI)

	 	4.3	The weight assigned to each of the plan factors depends on the participant’s bonus plan, as listed below: 

  

													
	 Plan Factors
	  	80% Plan	 	 	50% Plan	 	 	30% Plan	 	 	20% Plan	 
	 Total SUNPOWER 2006 PBT (PBT factor)
	  	25	%	 	20	%	 	20	%	 	10	%
	 Total SUNPOWER 2006 Sales (Sales factor)
	  	25	%	 	20	%	 	20	%	 	10	%
	 Quarterly Company Milestone (Milestone factor) and Individual KIs
	  	50	%	 	60	%	 	60	%	 	80	%
	 Total Plan Factors Weights
	  	100	%	 	100	%	 	100	%	 	100	%

  

	 	4.4	PBT Factor: Scoring for the PBT factor will be dependent on SunPower performance against the 2006 plan. The zero point for PBT is determined by the executive staff and approved by
the Compensation Committee of the Board at the beginning of the Plan period. The zero point yields no bonus payment. PBT performance at 100% point of the plan yields 100% payment. PBT performance between the zero point and the 100% point of the plan
is pro-rated. 

  

			
	 PBT TARGET
	 	PAYMENT
	 $0M
	 	= 0
	 Between $0M - $24.9M
	 	= Pro-Rated
	 >$24.9M (100%)
	 	= 100% Paid

  

	 	4.5	Product Sales Factor: Scoring for the sales factor will be dependent on SunPower’ performance against the 2006 plan. The zero point for Sales is determined by the executive
staff and approved by the Compensation Committee of the Board at the beginning of the Plan period. The zero point yields a sales factor of zero. Sales at 100% of plan yields a sales factor of 1.0. Sales performance between the zero point and the
100% point of the plan is ratably scored between 0 and 1.0. Sales greater than 100% of the 2006 plan yields a sales factor greater than 1.0, equal to actual total sales divided by plan sales, with no maximum. The graph below depicts the sales
factor at different sales levels. The 2006 Plan Sales for KEBP-purposes is $207.7M. Sales factor is zero if 2006 sales are lower than $186.9M. 

  

			
	 PRODUCT SALES
	 	FACTOR
	 < $186.9(90%) of Plan
	 	= 0
	 Between $186.9M and $207.7M
	 	= (Actual Sales-$186.9M) / ($207.7- $186.9M)
	 >$207.7M (100%)
	 	= Actual Sales/$207.7M

	 	4.6	Milestone Factor: Scoring for the milestone factor will be dependent on SunPower performance on quarterly company milestones, as approved by the Board of Directors. The zero point
yields a milestone factor of zero. Milestone points at 80 percent and above, yield a milestone factor equivalent to the percentage of points scored. Milestone performance between the 51 percent and 79 percent of points is calculated by taking the
percentage of points achieved divided by 2. The table below depicts the milestone factor at different point levels. 

  

			
	 MILESTONE SCORE
	 	FACTOR
	 < 50% of points
	 	= 0
	 Between 51% and 79% points
	 	= Actual Percentage of Points / 2
	 >80% points
	 	= Actual Percentage of Points

  

	 	4.7	In the event of an acquisition or major restructuring, the Plan Sales and Milestone figures will be adjusted accordingly. Any change in this measurement is subject to approval by
the Board. 

  

	 	4.8	The overall bonus calculation shall be as follows for the different bonus plans, where: 

  

			
	 B = base salary
	 	P = PBT factor
	 S = sales factor
	 	KI = score per quarter
	 M = milestone factor
	 	

 Sales and Cash Flow portions of the bonus: 
 80% KEBP = B x 80% x ((S x 25%) + (P x 25%)) 
 50% KEBP = B x 50% x ((S x 20%) + (P x 20%)) 
 30% KEBP = B x 30% x ((S x 20%) + (P x 20%)) 
 20% KEBP = B x 20% x ((S x 10%) + (P x 10%)) 
 Milestone and KI portion of the bonus (calculated quarterly): 
 80% KEBP = B x 80% x (((M x 50%) x KI) /4) 
 50% KEBP = B x 50% x (((M x 60%) x KI) /4) 
 30% KEBP = B x 30% x (((M x 60%) x KI) /4) 
 20% KEBP = B x 20% x (((M x 80%) x KI) /4) 
 Article 5—Bonus Plan Terms 
  

	 	5.1	Milestone and KI Portion of the Bonus. 

 5.1.1 The KI
Portion of the KEBP pays out only when the following trigger is met. 
  

			
	 IF PBT is If PBT Is
	 	 Bonus Is

	 > Plan
	 	PAID

 5.1.2 Plan payout calculation for the milestone and KI portion of the bonus 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. 

 5.1.3 For participants added to the KEBP program during the plan year, eligibility for the KI portion of
the bonus shall commence at the beginning of the immediately following quarter and will be rated in full quarter basis only. This condition applies to new hires that are offered KEBP participation as part of the employment offer. 
 5.1.4 In the event a participant’s incentive level is changed during the quarter (i.e. movement from 20% incentive level to 30%), the new incentive
level 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 incentive level in effect at the beginning of that quarter. 
  

	 	5.2	PBT and Sales Portions of the KEBP pays out only when the following trigger is met. 

  

					
	 IF PBT is If PBT Is
	 	 AND Sales is
	 	 Bonus Is

	 >0M
	 	> $186.9M	 	PAID

 5.2.1 Plan payout calculation for the PBT and Sales portions of the bonus will be based on the
plan participant’s base salary at the end of the plan period and not the base salary at the time the PBT and Sales portions of the bonus are paid. 
 5.2.2 For participants added to the KEBP program during the plan period, eligibility for the PBT and Sales portions of the bonus shall commence at the beginning of the immediately following month and calculation will
be prorated for the number of months they participated in the plan. This condition applies to new hires that are offered KEBP participation as part of the employment offer. 
 5.1.3 In the event a participant’s incentive level is changed during the plan period, (i.e. movement from 20% incentive level to 30%), as a result
of a promotion, demotion or significant change in responsibility, the PBT and Sales portions of the bonus shall be calculated based on the participant’s incentive level at the end of the plan period. 
 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 must 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, the 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 CEOs quarterly KI score is the actual company quarterly milestones achievement. 

 Article 7—Payment of Bonus Earned 
  

	 	7.1	Bonus payments are made in two separate processes: 

 7.1.1
At the end of the plan period, the CEO will present the calculated bonus for PBT and Sales to the Compensation Committee of the Board for their approval. 

 7.1.2 At the end of each quarter, the actual milestone achievement for the company and the actual KI
achievement for each individual will be calculated. If the PBT trigger is satisfied, the milestone and KI payments are made quarterly within 30 days of the end of each quarter. 
  

	 	7.2	The PBT and Sales payments are made as follows: 

 50% of
bonus earned at the end of the plan period will be paid 6 months after the end of the plan period (Tentatively July 2, 2007). 
 50% of
bonus earned will be paid 6 months after the first installment. (Tentatively January 2, 2008). 
  

	 	7.3	Actual bonuses for each participant will be calculated using the formulas in para 4.8. 

 Article 8—Eligibility for Payment 
  

	 	8.1	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 forfeit the bonus including all future payment schedules, except as otherwise provided in this article. 

  

	 	8.2	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: for the portion based on KI completion, the quarter in which the disability begins will be considered a
completed quarter and the KI portion of the bonus for that quarter will be paid as though KI attainment was 100%. Thereafter, quarterly participation ceases. For the portion of the bonus based on PBT and Sales, the number of days the employee worked
in the plan period will be used to pro-rate the amount which will be paid at the end of the plan period. 

  

	 	8.3	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: for the portion based on KI completion, the quarter in which the retirement begins will be considered a completed quarter and the KI portion of the bonus for that quarter will be paid as though KI
attainment was 100%. Thereafter, quarterly participation ceases. For the portion of the bonus based on PBT and Sales, the number of days the employee worked in the plan period will be used to pro-rate the amount which will be paid at the end of the
plan period. 

  

	 	8.4	Death: If a participant dies, awards will be paid to the beneficiary designated by the participant, otherwise, to the persons entitled thereto as determined by a court of
competent jurisdiction. The bonus will be calculated as follows: for the portion based on KI completion, the quarter in which death occurred will be considered a completed quarter and the KI portion of the bonus for that quarter will be paid as
though KI attainment was 100%. Thereafter, quarterly participation ceases. For the portion of the bonus based on PBT and Sales, the number of days the employee worked in the plan period will be used to pro-rate the amount which will be paid at the
end of the plan period. 

  

	 	8.5	Lay-off: If a participant is terminated by lay-off during the plan period, no bonus will be awarded for the PBT and Sales portion of the bonus. The calculation for the KI
portion of the bonus will be: the quarter in which the lay-off occurred will be considered a completed quarter and the KI portion of the bonus for that quarter will be paid as though KI attainment was 100%. Thereafter, quarterly participation
ceases. If a participant is terminated by lay-off after the plan period but prior to a scheduled bonus payment, it will be at the discretion of the CEO to pay the bonus. 

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

  

	 	8.7	All qualified bonus payments including future scheduled payments pursuant to para 8.2, 8.3, and 8.4 will be paid in lump-sum. 

  

	 	8.8	The CEO 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 plan period.

 Article 9—Miscellaneous 
  

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

  

	 	9.2	Participation in this plan does not guarantee any right to continued employment with the Company. 

  

	 	9.3	Participation in the plan in a particular plan period is not a guarantee to participate in subsequent plan periods. 

  

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

	 	9.5	This 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 is not an indication of funds set aside for payment. 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. 

  

	 	9.6	The provision of this plan shall not limit the CEO and the Compensation Committee of the Board of Directors to modify said plan, or adopt such other plans on matters of
compensation, bonus or incentive, which in its own judgment it deems proper, at any time. 

  

	 	9.7	This agreement is construed to be in accordance with the laws of the State of Delaware.Amendment to Supply Agreement

 Exhibit 10.31 
 CONFIDENTIAL TREATMENT REQUESTED, CONFIDENTIAL PORTIONS OF THIS DOCUMENT HAVE BEEN REDACTED AND HAVE BEEN SEPARATELY FILED WITH THE COMMISSION 
 2006 Contract SunPower/Conergy 
 Amendment to Supply
Agreement between 
 SunPower Corporation 
 430 Indio Way 
 Sunnyvale, CA 94085 
 USA 
  

	hereinafter	called “SunPower” 

 and

 Conergy AG 
 Anckelmannsplatz 1 
 20537 Hamburg 
 Germany 
  

	hereinafter	called “Conergy” 

 (SunPower
and Conergy are hereinafter collectively referred to as the “Parties” and individually as a “Party”). 
 Effective as of the date of the
last signature to this Amendment Agreement (the “Effective Date”), the Parties agree to expand the existing terms of their relationship as set forth in that certain Supply Agreement dated and signed by the Parties on April 17, 2004
(“Supply Agreement”), as follows: 
  

	1.	On the terms and conditions set forth herein, Conergy shall purchase and SunPower shall deliver in the calendar year 2006 solar module types as set forth in Appendix A with a total
nominal output of *** Megawatts (MWp) peak (the “2006 Volume”). 

  

	2.	The 2006 Volume shall be shipped FCA SunPower’s factory in China between January 1, 2006 and November 30, 2006. Shipments will be made according to the following
distribution schedule, which shall be based on calendar quarters. 

  

									
	 	 	 Q1
	 	 Q2
	 	 Q3
	 	 Q4

	 Planned 2006 volume (MWp)
	 	***	 	***	 	***	 	***

  

	3.	Conergy and its affiliates shall have the exclusive right to market and sell all SunPower products within the European Union, with the exception of the following products which
Conergy shall have no exclusive right to market and sell: 

  

	 	i.	30-32 cell modules with white back-sheet and rated output less than or equal to 100 Wp for off-grid markets. 

  

	 	ii.	A-300 solar cells sold to Building Integrated PV (BIPV) applications which are defined as following a) glass-glass modules, b) custom roof integrated photovoltaic (PV) laminates, or
c) custom large area PV laminates designed for curtain wall installations only. 

  

	 	iii.	Opto-electronics, consumer products or solar concentrator products. 

  

	***	CONFIDENTIAL MATERIAL REDACTED AND SEPARATELY FILED WITH THE COMMISSION. 

			
	Supply Agreement 2006 / SunPower and Conergy	  	3/22/2006

  

	 	iv.	Cells or modules for use in tracking systems, and 

  

	 	v.	Standard modules sold into multi-family new-home projects in the Netherlands, pending project-specific discussions with Conergy. 

  

	4.	The basis of any delivery by SunPower shall be a written purchase-order of Conergy sent to SunPower by fax. Conergy shall comply with the forecasting procedures set forth in the
Supply Agreement. SunPower shall confirm the purchase order by a written fixed order acknowledgement, including volumes and module-types to be delivered and estimated delivery dates, sent by fax (+49 6897 8106 129) to Conergy within 5 working days
after the receipt of the purchase order. 

  

	5.	The price for modules supplied under this contract shall be *** for the first *** of modules delivered to Germany under this Agreement and *** for the remaining volume of module
shipments made in Q1 2006. Prices for Q2, Q3 and Q4 of calendar year 2006 will be negotiated 45 days prior to the start of the subsequent quarter. 

  

	6.	All prices and deliveries under this Agreement will be made FCA SunPower’s China factory as set forth in Section 2 above with a minimum individual shipment volume of one
sea-container (40 feet) containing 420 solar modules. 

  

	7.	Conergy shall pay all invoices no later than *** days from the date of shipment from SunPower factory located in China. If full payment for an invoice is received by SunPower’s
bank within *** after the date of shipment, a cash rebate of *** of the invoice total may be taken and deducted from outstanding payments due to SunPower by Conergy. In the event that Conergy takes the *** discount described above, Conergy shall
communicate and document each such discount by including with their discounted payment a credit notice for the applicable discount. 

  

	8.	Conergy and SunPower agree to meet on or near September 30, 2006 to negotiate module volumes and prices for calendar 2007. 

  

	9.	The Parties agree that the penalties stipulated in sections 14 and 15 of the April 2004 Supply Agreement shall no longer apply. 

  

	10.	This Agreement shall commence on the Effective Date and expire on December 31, 2006, unless extended by mutual agreement of the Parties. 

  

	11.	In the event that the Parties cannot agree to a mutually acceptable price during any of the quarterly price renegotiation meetings stipulated in Section 5, then SunPower is
entitled to cancel the exclusivity of this contract by means of written notification to Conergy. In the event that SunPower decides to cancel the exclusivity described in Section 3 above, the Parties agree that there shall be two distinct
phases of such cancellation. In the first phase, SunPower may cancel Conergy’s exclusive right to sell SunPower products in EU countries other than Germany. The Parties will then negotiate in good faith a modified 2006 volume and/or price that
Conergy must meet to preserve their exclusive sales rights within Germany. In the event that the Parties cannot agree on a modified 2006 volume or price for the German market, SunPower may cancel Conergy’s exclusive sales right within Germany.
In either event, Conergy’s agreement to purchase product per Section 2 and SunPower’s agreement to supply product as per Section 2 shall remain in force until the later of (i) the end of the subsequent quarter and
(ii) 135 days after the quarterly pricing meeting (the “Extension period”). The selling price during the Extension period shall be the last 

  

	***	CONFIDENTIAL MATERIAL REDACTED AND SEPARATELY FILED WITH THE COMMISSION. 

  

 Page 2 of 4 

			
	Supply Agreement 2006 / SunPower and Conergy	  	3/22/2006

 selling price paid by Conergy and in force at the time of the last pricing meeting. Following the
Extension period, Conergy will not be obligated to purchase any further products, SunPower will not be obligated to supply any further products and this Amendment Agreement shall automatically terminate. 
  

	12.	The Parties agree to meet on or around June 30, 2006 to discuss the possibility of supply of an additional *** by SunPower to Conergy during the second half of calendar year
2006. 

  

	13.	The Parties agree to meet on or around March 31, 2006 to discuss a multi-year strategic partnership. 

  

	14.	The Parties shall continue to rely on the Supply Agreement for all provisions not specifically addressed in this Amendment Agreement. 

  

	15.	The Parties agree to abide by the Non-Disclosure Agreement in effective as of the date of this Amendment Agreement. Notwithstanding the content of such non-disclosure agreement, the
Parties further agree that neither shall disclose to any third party any confidential information which shall include, but not be limited to, the terms, conditions, existence or reasons for termination, if applicable, of this Amendment Agreement,
except as required by a party to comply with applicable securities law. In the event either party is compelled by law (other than for compliance with securities law) to disclose confidential information of the other party or the existence of this
Amendment Agreement, such disclosing party shall provide such party with prior notice of such intended disclosure with ample to time to allow such party the opportunity to seek a protective order for such information. 

  

	16.	Entire Agreement: This Amendment Agreement, together with the Supply Agreement, subsequent Amendments dated
                 and that certain Non-Disclosure Agreement between the Parties, dated
                , and their respective exhibits and schedules, set forth the entire agreement and understanding of the Parties relating to the subject matter
contained herein and merges all prior discussions and agreements between them. No Party shall be bound by any representation other than as expressly stated in this Agreement, or by a written amendment to this Agreement signed by authorized
representatives of both Parties. No amendment, modification or supplement of any provision of this Agreement shall be valid or effective unless made in writing and signed by a duly authorized officer of each Party 

 Hamburg, 22nd December 2005 
  

					
	Conergy AG	 		 	SunPower Corporation
			
	  
	 		 	  

	Edmund Stassen	 		 	
	Board Member	 		 	
			
	  
	 		 	
	Andreas Balzer	 		 	
	Director Corporate Purchasing	 		 	

  

	***	CONFIDENTIAL MATERIAL REDACTED AND SEPARATELY FILED WITH THE COMMISSION. 

  

 Page 3 of 4 

			
	Supply Agreement 2006 / SunPower and Conergy	  	3/22/2006

 APPENDIX A: Module data sheets and specifications 
 Products to be included: 
  

	•	 	STM-200-FW 

  

	•	 	STM-210-FW 

  

	•	 	STM-220-FW 

  

	•	 	STM-200-FB 

  

	•	 	STM-210-FB 

  

 Page 4 of 4

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