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              CONFIDENTIAL
      TREATMENT REQUESTED

              --

              CONFIDENTIAL
      PORTIONS OF THIS DOCUMENT HAVE BEEN REDACTED AND HAVE BEEN SEPARATELY
      FILED WITH THE SECURITIES AND EXCHANGE
  COMMISSION

            

    

     

    

     

    
      	
               
      

            	
              Long-term
      Polysilicon Supply Agreement

            

    

    

    
      	
               
      

            	
              between

            

    

    

    
      	
               
      

            	
              JVCo

            

    

    

    
      	
               
      

            	
              and

            

    

    

    
      	
               
      

            	
              SunPower
      Corporation

            

    

    

    
 

    
       

      
        	 1.	 Introduction	 2
	 2.	 Definitions	 2
	 3.	 Obligations to sell
      and purchase Polysilicon, forecasts and delivery
      schedule 	 3
	 4.	 Price and
      quantity 	 3
	 5.	 Purchase
      Orders 	 4
	 6.	 Payment.	 5
	 7.	 Delivery; Warranty;
      Inspection.	 5
	 8.	 Packaging and
      Shipping 	 6
	 9.	 Term 	 6
	 10.	 Completion of Initial
      Plant. 	 6
	 11.	 Termination.	 7
	 12.	  Confidentiality.	 7
	 13.	 Damages
      Limitation.	 8
	 14.	 Intellectual Property
      Indemnity. 	 8
	 15.	 Taxes. 	 8
	 16.	 Force
      Majeure.	 9
	 17.	 Choice of
      Law. 	 10
	 18.	 Waiver	 10
	 19.	 Severability. 	 10
	 20.	 Attorney Fees and
      Costs.	 10
	 21.	 Dollars.	 10
	 22.	 Agreement
      Preparation. 	 11
	 23.	 Assignment. 	 11
	 24.	 Audit
      Rights	 11
	 EXHIBIT
      A	 	 13
	 EXHIBIT
      B	 	 14
	 EXHIBIT
      C 	 	 15

      

      

        
          
            
              
 

            

             

          

          
            
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              JVCo and
SunPower Confidential

              

            
              

            

          

          
             

          

        

      

    

     

    
      	
              1  

            	
              Introduction

            

    

     

    _________________________,
a Saudi Arabia limited liability company with its principal place of business at
______________________________________ (“JVCo”) and SunPower Corporation, a
Delaware corporation with its principal place of business at 3939 North First
Street, San Jose, California 95134 (“SunPower”) hereby enter into this Long-Term
Polysilicon Supply Agreement (the “Agreement”) effective as of 10 January, 2008
(the “Effective Date”).

     

    WHEREAS, JVCo is in the
process of erecting a manufacturing facility for polycrystalline silicon
(“Polysilicon”) in Saudi Arabia with an expected annual production of ***MT
(“Initial Plant Capacity”) from 2010 onwards;

     

    WHEREAS, SunPower utilized
polycrystalline silicon in its production of Photovoltaic Solar panels;
and

     

    WHEREAS, SunPower has entered
into an option agreement whereby SunPower subject to certain terms and
conditions has the right and / or obligation to purchase up to 25% of the shares
in JVCo from NorSun; and

     

    WHEREAS, on the terms and
conditions set forth herein, JVCo wishes to sell and SunPower wishes to purchase
Polysilicon on a long term basis.

     

    
      	
               
      

            	
              NOW,
      THEREFORE, the parties agree as
follows:

            

    

     

    
      	
              2  

            	
              Definitions

            

    

     

    
      	
              2.1  

            	
              “Annual
      Quantity” shall mean annual quantities of Polysilicon to be sold by JVCo
      and purchased by SunPower in accordance with this Agreement, expressed as
      a fraction of the initial plant output volume set forth in Exhibit
      B

            

    

     

    
      	
              2.2  

            	
              “Commercial
      Operation Date” shall mean the date when JVCo has made its first
      commercial sale of Polysilicon produced at the Initial Plant, meeting the
      technical specifications set forth in Exhibit
A.

            

    

     

    
      	
              2.3  

            	
               “Business
      Year” shall mean the period beginning on January 1st
      and ending on December 31st
      of the same year.

            

    

     

    
      	
              2.4  

            	
              “Initial
      Plant” shall mean the first Polysilicon plant to be erected by JVCo in
      Jubail Industrial City with an expected production capacity of a total of
      *** metric tons (MT) per year.

            

    

     

    
      	
              2.5  

            	
              “Initial
      Plant Output” shall mean the total quantity of Polysilicon produced at the
      Initial Plant during one Business
Year.

            

    

     

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

    
      
        
        

      

      
        
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              2.6  

            	
              “Polysilicon”
      shall mean the polycrystalline silicon, meeting the technical
      specifications set forth in Exhibit A, manufactured by JVCo and sold to
      SunPower hereunder.

            

    

     

    

     

    
      	
              3  

            	
              Obligations
      to sell and purchase Polysilicon, forecasts and delivery
      schedule

            

    

     

    
      	
              3.1  

            	
              For
      the period from the Commercial Operation Date through 31 December 2019,
      JVCo shall be obliged to sell and SunPower shall be obliged to purchase
      Polysilicon in the quantities (expressed as a fraction of the Initial
      Plant Output) and in accordance with the schedule set forth in Exhibit
      B.  The specifications for the Polysilicon are set forth in
      Exhibit A, as such specifications may be amended from time to time by
      mutual written agreement of the parties.  SunPower shall have
      the right to reject Polysilicon (in accordance with Sections 7.3 and 7.4 below)
      which does not meet such specification.  Any such rejected
      quantities shall not constitute “actually delivered” pursuant to Section
      3.2 (ii)
below.

            

    

     

    
      	
              3.2  

            	
              This
      Agreement is a “take or pay agreement” such that JVCo is required to
      deliver and sell and SunPower is required to accept and pay for quantities
      of Polysilicon set forth in the third column of Exhibit B at the prices
      set forth in the second column of Exhibit B, subject only to i) the
      adjustments set forth in this Agreement and ii) with respect to SunPower’s
      obligation to accept and pay for the Polysilicon, that JVCo actually
      delivers such quantities at the agreed dates (“Delivery Dates”) set forth
      in Exhibit B.

            

    

     

    
      	
              3.3  

            	
              In
      the event that SunPower fails to order and take delivery of its contracted
      volume in a given Business Year, and such failure is not otherwise excused
      under this Agreement, JVCo shall invoice SunPower for the differential at
      full contract price and SunPower will pay the same within 30 days of
      invoice date.  SunPower specifically acknowledges and accepts
      that it will be liable for the full purchase price of volume differential
      between the quantity ordered and the contracted volume.
  

            

    

     

    
      	
              3.4  

            	
              In
      the event that JVCo fails to deliver Polysilicon contracted by SunPower in
      accordance with section 3.1 above and Exhibit
      B, and such failure is not triggered by a Force Majeure event or delay in
      the completion of the Initial Plant as set forth in section 10, SunPower has the right to purchase the
      relevant quantity of Polysilicon from any third party provider (“Third
      Party Polysilicon”) and to have JVCo reimburse SunPower for the reasonable
      price difference, if any, between the price set forth in Exhibit B and the
      price SunPower has paid the said third party provider.  SunPower
      shall use commercially reasonable efforts to mitigate its damages in
      procuring Polysilicon from any third party in such circumstances.
      

            

    

     

    

     

    
      	
              4  

            	
              Price
      and quantity

            

    

     

    
      	
              4.1  

            	
              The
      price and quantity of Polysilicon to be purchased by SunPower from JVCo
      are as set forth in the second and third column of Exhibit B. All prices
      are FCA JVCo, Jubail, Saudi 

            

    

    
      
        
        

      

      
        
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      Arabia (Incoterms 2000).  Subject only to the price adjustments
      set forth in Section 4.2, these prices are
      fixed for the term of this Agreement set forth in Section 9 below.

    

     

    
      	
              4.2  

            	
              On
      January 1 of each year beginning January 1, 2015, JVCo shall adjust prices
      on the Polysilicon on an annual basis to account for changes in JVCo’s
      cost structure relative to the manufacture of the Polysilicon. Such price
      adjustments shall however be limited to changes relating to electricity,
      raw materials (metallurgical grade silicon) and employment cost, and shall
      be calculated in accordance with Exhibit
C.

            

    

     

    

     

    
      	
              5  

            	
              Purchase
      Orders

            

    

     

    
      	
              5.1  

            	
              SunPower
      shall issue to JVCo monthly purchase orders (hereinafter referred to as
      “Purchase Orders”). Except as otherwise expressly provided in this
      Agreement, SunPower shall in each Business Year issue Purchase Orders for
      a total of the Annual Quantity applicable to each Business
      Year.

            

    

     

    
      	
              5.2  

            	
              The
      quantity of Polysilicon to be delivered in each calendar month shall be
      specified in the Purchase Orders.  SunPower shall issue the
      Purchase Orders on a monthly basis, no later than three (3) months before
      the actual delivery month starts. Together with each Purchase Order,
      SunPower shall also provide an estimate of the quantity of Polysilicon to
      be delivered during the two successive months after the actual delivery
      month, provided, however, that such estimate shall not be binding upon
      SunPower or JVCo. Under no circumstances shall the quantity of Polysilicon
      to be ordered each month be less than eight percent (8%) of the Annual
      Quantity for that Business Year.

            

    

     

    
      	
              5.3  

            	
              SunPower
      shall ensure that the Purchase Orders, unless otherwise agreed in writing
      between the parties, are issued monthly and shall, at a minimum, contain
      the following information: (i) reference to this Agreement, (ii)
      identification of the Polysilicon by proper name, price, and quantities,
      (iii) delivery instruction and delivery place, (iv) delivery date and (v)
      issue date.  SunPower shall send Purchase Orders by ordinary
      registered mail or comparable means allowing tracking, and SunPower shall
      send a copy to SunPower on the issue date either by e-mail or
      telefax.

            

    

     

    
      	
              5.4  

            	
              A
      Purchase Order shall be binding for JVCo only after it is received and its
      conditions have been confirmed by JVCo.  JVCo shall send
      confirmation of a Purchase Order by e-mail, or alternatively telefax, and
      registered letter. If JVCo fails to object to the Purchase Order within 15
      days after SunPower’s issue date, then such Purchase Order shall be deemed
      accepted by JVCo. Notwithstanding the foregoing, JVCo shall not reject the
      quantity in a Purchase Order as long as such quantity is not more than 10%
      of the Annual Quantity.

            

    

     

    
      	
              5.5  

            	
              In
      the event of a discrepancy between the terms and conditions of this
      Agreement and an individual Purchase Order, the terms and conditions of
      this Agreement shall prevail unless the parties in writing agree
      otherwise.

            

    

    
      
        
        

      

      
        
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              6  

            	
              Payment.

            

    

     

    
      	
              6.1  

            	
              Payment
      terms are net 30 days from the date of each undisputed
      invoice.  Finance charges of ***% per month (***% per annum) may
      be assessed on payment past due from the payment due date to the date
      payment is received.

            

    

     

    
      	
              6.2  

            	
              If
      SunPower fails to pay invoices when due or finance charges when assessed,
      JVCo may delay future shipments.

            

    

     

    
      	
              7  

            	
              Delivery;
      Warranty; Inspection.

            

    

     

    
      	
              7.1  

            	
              Title
      and risk of loss with respect to all Polysilicon shall pass to SunPower at
      Jubail harbor, Saudi Arabia, in accordance with the FCA, (Incoterms 2000)
      rules.

            

    

     

    
      	
              7.2  

            	
              If
      Polysilicon is not delivered within six (6) weeks following the requested
      delivery date, JVCo will pay SunPower liquidated damages  at a
      rate of *** percent (***%) of the gross purchase price applicable to such
      shipment per week thereafter, up to a maximum of *** percent (***%).The
      foregoing liquidated damages address late delivery shipments only and are
      independent of JVCo’s liability (if any), and SunPower’s corresponding
      ability to recover damages, for JVCo’s failure to deliver its commitments
      pursuant to this Agreement (including pursuant to Section 3.4).

            

    

     

    
      	
              7.3  

            	
              JVCo
      warrants that the Polysilicon will be free from defects and conform to the
      specifications set forth in Exhibit A, provided that JVCo is notified of
      any defects or non-conformity within thirty (30) days after the relevant
      Polysilicon has arrived at the SunPower Delivery Point, however no later
      than three (3) months after delivery in accordance with Section 8, and
      that the defect or non-conformity is shown to be due to JVCo’s faulty
      design, workmanship, material or packaging. An inspection of the
      appearance of each Polysilicon delivery package shall be made by SunPower
      within 30 days after arrival of Polysilicon at the SunPower Delivery
      Point. In the event of any warranty claims, SunPower shall notify JVCo
      whereupon JVCo shall have the right to undertake its own
      inspection.  If JVCo has not received a written notification
      within the time limits set forth in this section 7.3, the Polysilicon shall be regarded as
      accepted. For the purpose of this section 7.3, the “SunPower Delivery Point” shall be
      identified no later than thirty days prior to the first scheduled delivery
      date, and SunPower may modify such location with at least 30 days prior
      written notice to JVCo.

            

    

     

    
      	
              7.4  

            	
              In
      the event that the Polysilicon does not meet the Exhibit A specifications,
      SunPower shall have the right to reject such defective Polysilicon and
      return them to JVCo. JVCo shall examine and judge the returned Polysilicon
      within thirty (30) days after receipt.  JVCo shall bear any and
      all costs and expenses incurred by SunPower related to the return of the
      defective Polysilicon and shall provide such remedies as set forth in
      Section 7.2 and (if applicable) Section 3.4.

            

    

     

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

    
      
        
        

      

      
        
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              8  

            	
              Packaging
      and Shipping

            

    

     

    
      	
              8.1  

            	
              JVCo
      shall bear all costs associated with packaging or storing the Polysilicon
      until delivery to SunPower pursuant to the delivery terms specified in
      Section 7.1. All Polysilicon shall be
      packaged, marked, and otherwise prepared in accordance with good
      commercial practices to reduce the risk of damage and to be packaged in
      the smallest commercially acceptable form in order to enable SunPower to
      obtain the lowest shipping rates possible (based on volume metric
      dimensions) and in accordance with all applicable federal, state and local
      packaging and transportation laws and regulations. An itemized packing
      list shall accompany each shipment.

            

    

     

    
      	
              8.2  

            	
              JVCo
      shall establish reasonable control routines in order to ensure punctual
      delivery of the Polysilicon at the agreed time and without any defects or
      non-conformities.

            

    

     

    
      	
              8.3  

            	
              A
      shipment notice shall be submitted from JVCo to SunPower by telefax or
      other means of communications, at the latest on the shipment date,
      including:

            

    

     

    a) Purchase
Order No.

    b) Brief
description of Polysilicon

    c) Invoice
amount

    d) Number of
packages

    e) Gross
weight (total) kilos

    f) Packing
list describing in detail the content of each package

    

    
      	
              8.4  

            	
              A
      delivery certificate shall be issued by JVCo to SunPower for each shipment
      of Polysilicon.

            

    

     

    

     

    
      	
              9  

            	
              Term

            

    

     

    
      	
              9.1  

            	
              The
      term of this Agreement shall be from the Effective Date through December
      31, 2019 (the “Term”). The Agreement may not be terminated prior to the
      scheduled expiration of the Term except as expressly set forth in Section
      11 and 16.

            

    

     

    
 

    
      	
              10  

            	
              Completion
      of Initial Plant.

            

    

     

    
      	
              10.1  

            	
              SunPower
      acknowledges that JVCo must erect and complete the Initial Plant in order
      to produce the Polysilicon to be supplied under this
      Agreement.  The estimated Commercial Operation Date for the
      Initial Plant is January 1, 2010 with an estimated annual production
      capacity of *** metric tons (MT).  The Parties estimate that the
      Initial Plant will achieve full commercial production of ***MT per year by
      1 January 2011.  Except 

            

    

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

    
      
        
           

        

      

      
        
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      pursuant to section 3.4 above, JVCo shall
      have no liability to SunPower for any delay or failure to achieve the
      estimated production capacities by such dates, including shortfalls in
      delivery of Polysilicon resulting
therefrom.

    

     

    
      	
              10.2  

            	
              If
      the Commercial Operation Date of the Initial Plant is delayed for more
      than one year SunPower shall have the right, at its sole discretion, to
      extend the Term set forth in Section 9
      commensurately with the period of
delay.

            

    

     

    

     

    
      	
              11  

            	
              Termination.

            

    

     

    
      	
              11.1  

            	
              A
      party may, in its sole discretion, terminate this Agreement only upon the
      event of a material breach by the other party of its obligations under
      this Agreement, provided that (i) the non-breaching party submits a
      written notice of such breach to the breaching party, and (ii) the
      breaching party fails to cure such breach within sixty (60) days of
      receipt of the written notice of breach.  If the breaching Party
      rectifies any such breach within the said period, then the breach shall be
      deemed cured with respect to this section 11
      and the non-breaching shall not be entitled to terminate this
      Agreement.

            

    

     

    
      	
              11.2  

            	
              All
      outstanding payment obligations as well as Sections 7, 10 and 12 through 24 of
      this Agreement shall survive any termination of this
      Agreement.

            

    

     

    

     

    
      	
              12  

            	
              Confidentiality.

            

    

     

    
      	
              12.1  

            	
              Definition.  ”Confidential
      Information” means any information disclosed (whether prior to the
      Effective Date, on the Effective Date or after the Effective Date) by a
      Party (the “Disclosing Party”) to another Party (the “Receiving Party”),
      either directly or indirectly, in writing, orally or by drawings or
      observation of tangible objects such as documents, prototypes, samples,
      products and facilities, including, but not limited to, trade secrets,
      know-how and other intellectual property or information relating to the
      Disclosing Party’s business, operations, products, technology, together
      with any and all analyses, or other documents prepared by the Disclosing
      Party or any of its Representatives that contain or otherwise reflect any
      of the foregoing information.  “Representatives” of any Party
      means such Party’s directors, officers, employees, reinsurers, agents and
      advisors (including, without limitation, attorneys, accountants,
      consultants, bankers, financial advisors or lending
      institutions).

            

    

    
       

      
        	
                12.2  

              	
                Confidential
      Information and Exclusions.  Notwithstanding Section ‎12.1 above,
      Confidential Information shall exclude information that: (i) was
      independently developed by the Receiving Party without using any of the
      Disclosing Party’s Confidential Information; (ii) becomes known to the
      Receiving Party, without restriction, from a source other than the
      Disclosing Party that had a right to disclose it; (iii) was in the public
      domain at the time it was disclosed or becomes in the public domain
      through no act or omission of the Receiving Party; or (iv) was rightfully
      known to the Receiving Party, without restriction, at the time of
      disclosure.

              

      

    

     

    
      
        
        

      

      
        
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              12.3  

            	
              Confidentiality
      Obligation.  The Receiving Party shall treat as confidential all
      of the Disclosing Party’s Confidential Information and shall not use such
      Confidential Information except as expressly permitted under this
      Agreement.  Without limiting the foregoing, the Receiving Party
      shall use at least the same degree of care that it uses to prevent the
      disclosure of its own confidential information of like importance, but in
      no event with less than reasonable care, to prevent the disclosure of the
      Disclosing Party’s Confidential Information, subject to Section ‎12.4
      below.

            

    

     

    
      	
              12.4  

            	
              Legal
      Disclosure.  Notwithstanding anything herein to the contrary, a
      Receiving Party has the right to disclose Confidential Information without
      the prior written consent of the Disclosing Party: (i) as required by any
      court or other governmental authority, or by any stock exchange the shares
      of any Party are listed on; (ii) as otherwise required by law, or (iii) as
      advisable or required in connection with any government or regulatory
      filings, including without limitation, filings with any regulating
      authorities covering the relevant financial markets.  If a
      Receiving Party believes that it will be compelled by a court or other
      authority to disclose Confidential Information of the Disclosing Party, it
      shall give the Disclosing Party prompt written notice so that the
      Disclosing Party may take steps to oppose such
  disclosure.

            

    

     

    
      	
              12.5  

            	
              Remedies.  If
      a Receiving Party breaches any of its obligations under this Section ‎12, the
      Disclosing Party shall be entitled to seek equitable relief to protect its
      interest therein, including injunctive relief, as well as money
      damages.

            

    

     

    

     

    
      	
              13  

            	
              Damages
      Limitation.

            

    

     

    
      	
              13.1  

            	
              NEITHER
      PARTY SHALL BE LIABLE FOR ANY, SPECIAL, PUNITIVE, CONSEQUENTIAL OR
      INDIRECT DAMAGES ARISING OUT OF THIS
AGREEMENT.

            

    

     

    

     

    
      	
              14  

            	
              Intellectual
      Property Indemnity.

            

    

     

    
      	
              14.1  

            	
              JVCo
      shall indemnify, defend, save and hold harmless and pay any award of
      damages assessed against SunPower in any suit or cause of action alleging
      that the use of the Polysilicon infringes any patent or other intellectual
      property right of any third party.

            

    

     

    

     

    
      	
              15  

            	
              Taxes.

            

    

     

    
      	
              15.1  

            	
              Any
      tax or other government charge now or in the future levied upon the
      production or sale of the Polysilicon in Saudi Arabia in accordance with
      this Agreement, shall be paid by
JVCo.

            

    

    
      
        
        

      

      
        
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              16  

            	
              Force
      Majeure.

            

    

     

    
      	
              16.1  

            	
              Neither
      party shall be responsible for any delay in or failure to carry out his
      duties under the Agreement if such a delay or failure results from a
      reason of Force Majeure.

            

    

     

    
      	
              16.2  

            	
              If
      the party will be delayed in completing its obligations by Force Majeure
      there shall be granted such an extension of time as may be reasonably
      required to allow such party to perform so long as the party is using
      reasonable efforts to resolve the circumstances constituting a Force
      Majeure.  If the delay in performance continues beyond 30 days,
      the parties shall meet monthly to discuss the event of Force Majeure and
      progress by the party claiming Force Majeure in its resolution of such
      circumstances and resumption of
performance.

            

    

     

    
      	
              16.3  

            	
              “Force
      Majeure” means any event or circumstance which wholly or partly prevents
      or delays the performance of any material obligation arising under this
      Agreement, but only if and to the extent (i) such event is not within the
      reasonable control, directly or indirectly, of the Party seeking to have
      its performance obligation(s) excused thereby, (ii) the Party seeking to
      have its performance obligation(s) excused thereby has taken all
      reasonable precautions and measures in order to prevent or avoid such
      event or mitigate the effect of such event on such Party’s ability to
      perform its obligations under this Agreement and which by the exercise of
      due diligence such Party could not reasonably have been expected to avoid
      and which by the exercise of due diligence it has been unable to overcome,
      and (iii) such event is not the direct or indirect result of the
      negligence or the failure of, or caused by, the Party seeking to have its
      performance obligations excused thereby.  The following events
      could be considered as Force Majeure: war, riot, disputes between national
      labor market organizations directly involving the party claiming Force
      Majeure, fire, earthquake, extreme and unusual weather, acts of God, or
      any other causes designated Force Majeure by a court of law or arbitrator
      appointed in accordance with Section 17.2
      below.

            

    

     

    
      	
              16.4  

            	
              Delay
      or failure of the performance of a party's sub-supplier, subcontractor or
      lender, or the failure to obtain financing, government permits or license,
      shall not create a reason of Force Majeure, unless such reason occurs as a
      result of one of the events listed in Section 16.3
above.

            

    

     

    
      	
              16.5  

            	
              In
      the event of Force Majeure the party invoking a Force Majeure event shall
      notify the other party in writing thereof within seven (7) days from the
      incident in question. In such notice, the party shall inform, if possible,
      of the time when performance in accordance with this Agreement will be
      resumed.

            

    

    
      
        
        

      

      
        
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              17  

            	
              Choice
      of Law.

            

    

     

    
      	
              17.1  

            	
              The
      Agreement is made in, and shall be governed and controlled in all respects
      by the laws of the England.

            

    

     

    
      	
              17.2  

            	
              Any
      conflicts arising under this Agreement shall be resolved by arbitration
      under the rules of the International Chamber of Commerce (ICC). The
      arbitration shall be conducted in English and shall take place in London,
      England.

            

    

     

    

     

    
      	
              18  

            	
              Waiver.

            

    

     

    
      	
              18.1  

            	
              Either
      party’s failure to exercise a right or remedy or such party’s acceptance
      of a partial or delinquent payment shall not operate as a waiver of any of
      such party’s rights or the other party’s obligations under the Agreement
      and shall not constitute a waiver of such party’s right to declare an
      immediate or a subsequent default.

            

    

     

    

     

    
      	
              19  

            	
              Severability.

            

    

     

    
      	
              19.1  

            	
              If
      one or more of the provisions of this Agreement shall be found, by a court
      with jurisdiction, to be illegal, invalid or unenforceable, it shall not
      affect the legality, validity or enforceability of any of the remaining
      provisions of this Agreement.  The parties agree to attempt to
      substitute for any illegal, invalid or unenforceable provision a legal,
      valid or enforceable provision that achieves to the greatest extent
      possible the economic objectives of the illegal, invalid or unenforceable
      provision.

            

    

     

    

     

    
      	
              20  

            	
              Attorney
      Fees and Costs.

            

    

     

    
      	
              20.1  

            	
              The
      parties shall bear their own expenses incurred in connection with the
      negotiation and execution of this Agreement.  In the event that
      a dispute leads to litigation or arbitration, the prevailing party shall
      be entitled to reasonable costs and fees incurred, including attorneys’
      fees.

            

    

     

     

     

    
      	
              21  

            	
              Dollars.

            

    

     

    
      	
              21.1  

            	
              All
      references to monetary amounts shall be in U.S.
  Dollars.

            

    

    
      
        
        

      

      
        
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              22  

            	
              Agreement
      Preparation.

            

    

     

    
      	
              22.1  

            	
              This
      Agreement shall be considered for all purposes as prepared through the
      joint efforts of the parties and shall not be construed against one party
      or the other as a result of the manner in which this Agreement was
      negotiated, prepared, drafted or
executed.

            

    

     

    

     

    
      	
              23  

            	
              Assignment.

            

    

     

    
      	
              23.1  

            	
              Neither
      party may assign its rights or obligations under this Agreement without
      the consent of the other party

            

    

     

    
      	
              24  

            	
              Audit
      Rights.

            

    

     

    
      	
              24.1  

            	
              JVCo
      agrees its books and records (including without limitation all quality
      assurance records) and its factories and plants, or such parts thereof
      that may be relevant for any Polysilicon quality control or technical
      specification compliance test, shall at all reasonable times be subject to
      inspection and audit by SunPower or its third party
      representatives.

            

    

     

    

     

    

     

    
      	
              SUNPOWER
      CORPORATION:

               

               

               

              By:  /s/
      THOMAS WERNER

               

              Print
      Name: Thomas Werner

               

              Title:  Chief
      Executive Officer

               

              Date:  Jan.
      10, 2008

            	 
      	
              [_____________]*

               

               

               

              By:                                                                      

               

              Print
      Name:__________________________

               

              Title:_______________________________

               

              Date:

            

    

    

     

    
      	
               
      

            	
              *  To
      be completed upon formation of JVCo (see following
  page)

            

    

     

    
      
         

      

      
        
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    The
undersigned, in our capacity as Parties to the JV Agreement (JVA)
entered into on this date, hereby approve this Long Term Polysilicon Supply
Agreement (Agreement) and confirm that we will use our full power as parties to
the JVA and future shareholders of the JVCo to ensure that this Agreement is
ratified and signed by the JVCo immediately after execution and formal
registration of the JVCo constitutional documents, in accordance with Section
13.2.6 of the JVA .

     

    

     

    
      	
              Chemical
      Development Company

               

            	
              Swicorp
      JOUSSOUR Company

               

            
	
              By:  /s/
      WALID S. AL SHOAIBI

            	
              By:  /s/
      FAYSAL HAMZA

            
	
              Name:  Walid
      S. Al Shoaibi

            	
              Name:  Faysal
      Hamza

            
	
              Title:  Chairman

            	
              Title:  Executive
      Director

            
	 
      	 
      
	 
      	 
      
	 
      	
              NorSun
      AS

            
	 
      	
               

               

              By:/s/
      JON HINDAR

            
	 
      	
              Name:Jon
      Hindar

            
	 
      	
              Title:CEO

            
	 
      	 
      

    

    
      
         

      

      
        
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              EXHIBIT
      A

            

    

     

    
      	
               
      

            	
              POLYSILICON
      SPECIFICATIONS

            

    

    

    

    

    

    
      	
               
      

            	
              Exhibit
      to detail the poly specs:

            

    

    

    

    

    
      	
               
      

            	
              PRODUCT
      CODE:  ________________________

            

    

    

    
      	
              1.  

            	
              Description

            

    

    

    
      	
              2.  

            	
              Bulk
      & Surface Impurity
Specifications

            

    

    

    
      	
              3.  

            	
              Size
      Specification

            

    

    

    
      	
              4.  

            	
              Certification

            

    

    

    
      	
              5.  

            	
              Packaging
      and labelling

            

    

    

    
      
         

      

      
        
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              EXHIBIT
      B

            

    

     

    

    
      	
               
      

            	
              PRICES,
      PAYMENT, and DELIVERY VOLUME

            

    

     

    

     

    

    
      	
              Year

            	
              Price

            	
              Volume

              [expressed
      as a fraction of the Initial Plant Output]

            	
              Expected
      volumes MT (2)

              [assuming
      full production of *** MT per year]

            
	
              2010

            	
              $***/kg

            	
              ***

            	
              ***

            
	
              2011

            	
              $***/kg

            	
              ***

            	
              ***

            
	
              2012

            	
              $***/kg

            	
              ***

            	
              ***

            
	
              2013

            	
              $***/kg

            	
              ***

            	
              ***

            
	
              2014

            	
              $***/kg

            	
              ***

            	
              ***

            
	
              2015

            	
              $***/kg
      (1)

            	
              ***

            	
              ***

            
	
              2016

            	
              $***/kg
      (1)

            	
              ***

            	
              ***

            
	
              2017

            	
              $***/kg
      (1)

            	
              ***

            	
              ***

            
	
              2018

            	
              $***/kg
      (1)

            	
              ***

            	
              ***

            
	
              2019

            	
              $***/kg
      (1)

            	
              ***

            	
              ***

            

    

    
      	
               
      

            	
              (1) Subject to price
      adjustments in accordance with section 4.2

            

    

     

    (2) In accordance with the Joint
Venture Agreement between the initial shareholders of the JVCo, SunPower have
been granted a right to purchase *** of the Initial Plant Output. The metric
tons volume set forth in column four of the table above is based on the
assumption that the Initial Plant Output will be *** MT per year. This is
however only a production target in the sense that if the Initial Output is more
or less than *** MT, SunPower’s right to purchase and JVCo’s obligation to sell
Polysilicon under this Agreement shall still be *** of all polysilicon produced
at the Initial Plant during the relevant year.

     

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

     

    
      
         

      

      
        
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              EXHIBIT
      C

            

    

     

    

    Electricity,
raw materials and the labour expense adjustments

    

    The
assumed base production cost of polysilicon in year 2010 is $*** per kg is
consisting of the following cost components (in USD per kg produced
polysilicon):

                                  

    
       

      
        	 Electricity
      component 	 $  ***
	 Raw materials
      component	 $  ***
	 Labour expense
      component	 $  ***
	 Other
      elements	 $  ***
	 Baseline
      transfer price	 $*** (fully
      loaded)

      

       

    

    In
accordance with Section 4.5 of this Agreement, JVCo shall adjust the price for
Polysilicon on an annual basis starting 1 January 2015. Such adjustments shall
account for annual changes in JVCo’s cost structure relative to the manufacture
of the polysilicon, however limited to cost for electricity, raw materials and
labour. The adjusted price (“Adjusted Price”) shall be made effective every year
on 1 January, starting 1 January 2015. On 1 January 2015 the Adjusted Price
shall account for changes in the said cost elements from 1 January 2011 through
31 December 2014. The Adjusted Price shall be calculated as
follows.

                         

    
      
        	 New contract
      price =	 Other elements
      ( = $*** )
	 	 + adjusted
      electricity component
	 	 + adjusted raw
      materials component
	 	 + adjusted
      labour expense component

      

       

    

    Electricity
component:  The base electrical cost is $ *** per kWh (***US
dollar cent per kilowatt-hour).  The electricity usage per produced kg
of Polysilicon is baselined to *** kWh, giving an electricity cost of $*** per
kg produced Polysilicon.

    

    The
electricity adjustment is computed as follows (NEC means New Electricity Cost
measured in $/kWh for the coming year in question):

    

    Adjusted electricity component = $*** +
(NEC - ***) $/kWh * *** kWh

    

    Raw
Materials component:  The baseline raw materials cost per kg
produced polysilicon is $*** per kg produced material. The three largest items
(comprising ca ***%) of the $*** are:

    

                                                                                         

       

      
        	 Aluminum
      powder 	 ***MT at $***
      per kg =	 $*** per
      year
	 Dimethoxymethane  	 ***MT at $***
      per kg =	 $*** per
      year
	 Sodium	 ***MT at $***
      per kg =	 $*** per
      year
	 Sum	  	 $*** per
      year
	 Cost per kg Si
      at ***MTY	 	 $*** per kg
      produced Si

   

    

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

    
      
        
        

      

      
        
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    When for
a given upcoming year JVCo makes a similar calculation, the cost per kg produced
Polysilicon will go up or down depending on the actual raw materials price
contracts is has negotiated and agreed in writing. The actual cost for JVCo for
these three raw materials calculated per kg produced Polysilicon (***MTY),
denoted ACTUALads for
“actual cost per kg produced Polysilicon, aluminum, dimethoxymethane and sodium”
below, makes up the raw materials component. It is calculated as
follows:

    

    Adjusted raw materials component = $***
– $*** +  ACTUALads

    

    Labour
expense component:  The Base Employment Cost (base year = 2010)
is estimated at *** $/kg produced polysilicon.  Subject to changes in
the Consumer Price Index for Saudi Arabia as published by the World Bank Group
(eg http://devdata.worldbank.org/),  JVCo shall change the labour
expense component of Polysilicon as follows:

    

    
      	
              Year

            	
              Adjusted
      labour expense component

            
	
              2010

            	
              $***

            
	
              2011

            	
              $***
      * (1+CPI2010)

            
	
              2012

            	
              $***
      * (1+CPI2010)
      * (1+CPI2011)

            
	
              20(N),
      N = 13 to

              last
      year of contract

            	
              $***
      * (1+CPI2010)
      * (1+CPI2011)
      * ... (1+CPI20(N-1))

            

    

    

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

     

    
      
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        JVCo and SunPower ConfidentialUnassociated Document

     

    
      	  

              
                CONFIDENTIAL
      TREATMENT REQUESTED

                --

                CONFIDENTIAL
      PORTIONS OF THIS DOCUMENT HAVE BEEN REDACTED AND HAVE BEEN SEPARATELY
      FILED WITH THE SECURITIES AND EXCHANGE
  COMMISSION

              

            

    

     

    

     

    
      	
               
      

            	
              Long-term
      Polysilicon Supply Agreement

            

    

    

    
      	
               
      

            	
              between

            

    

    

    
      	
               
      

            	
              NorSun
      AS

            

    

    

    
      	
               
      

            	
              and

            

    

    

    
      	
               
      

            	
              SunPower
      Corporation

            

    

    

    
       

      
        	 1.	 Introduction	 2
	 2.	 Definitions	 2
	 3.	 Obligations to sell
      and purchase Polysilicon, forecasts and delivery
      schedule 	 3
	 4.	 Price and
      quantity 	 3
	 5.	 Purchase
      Orders 	 4
	 6.	 Payment.	 5
	 7.	 Delivery; Warranty;
      Inspection.	 5
	 8.	 Packaging and
      Shipping 	 6
	 9.	 Term 	 6
	 10.	 Completion of Initial
      Plant. 	 6
	 11.	 Termination.	 7
	 12.	  Confidentiality.	 7
	 13.	 Damages
      Limitation.	 8
	 14.	 Intellectual Property
      Indemnity. 	 8
	 15.	 Taxes. 	 8
	 16.	 Force
      Majeure.	 9
	 17.	 Choice of
      Law. 	 10
	 18.	 Waiver	 10
	 19.	 Severability. 	 10
	 20.	 Attorney Fees and
      Costs.	 10
	 21.	 Dollars.	 10
	 22.	 Agreement
      Preparation. 	 11
	 23.	 Assignment. 	 11
	 24.	 Audit
      Rights	 11
	 EXHIBIT
      A	 	 13
	 EXHIBIT
      B	 	 14
	 EXHIBIT
      C 	 	 15

    

    
      
        
           

          

        

         

      

      
        
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              1  

            	
              Introduction

            

    

     

    NorSun
AS, a Norwegian company with its principal place of business at Bankplassen 1,
0151 OSLO Norway (“NorSun”), and SunPower Corporation, a Delaware company with
its principal place of business at 3939 North First Street, San Jose, California
95134 (“SunPower”) hereby enter into this Long-Term Polysilicon Supply Agreement
(the “Agreement”) effective as of January 10, 2008 (the “Effective
Date”).

     

    WHEREAS, NorSun, Chemical
Development Company and Swicorp Joussour are in the process of establishing a
Saudi Arabia limited liability company (“JVCo”) as a joint venture that will
erect a manufacturing facility for polycrystalline silicon (“Polysilicon”) in
Saudi Arabia with an expected annual production of ***MT (“Initial Plant
Capacity”) from 2010 onwards;

     

    WHEREAS, the NorSun has signed
a Joint Venture Agreement (the “JVA”) whereby NorSun owns 50% of the shares in
JVCo and NorSun is entitled and obligated to purchase up to *** of the Initial
Plant Capacity for the period from 2010 through 2019 and SunPower wishes to
purchase from NorSun a fraction of such polysilicon; and

     

    WHEREAS, on the terms and
conditions set forth herein, NorSun wishes to sell and SunPower wishes to
purchase Polysilicon on a long term basis.

     

    
      	
               
      

            	
              NOW,
      THEREFORE, the parties agree as
follows:

            

    

     

    

     

    
      	
              2  

            	
              Definitions

            

    

     

    
      	
              2.1  

            	
              “Annual
      Quantity” shall mean annual quantities of Polysilicon to be sold by NorSun
      and purchased by SunPower in accordance with this Agreement, expressed as
      a fraction of the output from JVCo initial plant set forth in Exhibit
      B

            

    

     

    
      	
              2.2  

            	
              “Commercial
      Operation Date” shall mean the date when JVCo has made its first
      commercial sale of polysilicon produced at its initial plant, meeting the
      technical specifications set forth in Exhibit
A.

            

    

     

    
      	
              2.3  

            	
               “Business
      Year” shall mean the period beginning on January 1st
      and ending on December 31st
      of the same year.

            

    

     

    
      	
              2.4  

            	
              “Initial
      Plant” shall mean the first Polysilicon plant to be erected by JVCo in
      Jubail Industrial City with an expected production capacity of a total of
      *** metric tons (MT) per year.

            

    

     

    
      	
              2.5  

            	
              “Initial
      Plant Output” shall mean the total quantity of Polysilicon produced at the
      Initial Plant during one Business
Year.

            

    

     

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

    
      
        
        

      

      
        
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              2.6  

            	
              “Polysilicon”
      shall mean the polycrystalline silicon, meeting the technical
      specifications set forth in Exhibit A, manufactured by JVCO and sold to
      NorSun who in turn sells such polycrystalline silicon to SunPower
      hereunder.

            

    

     

    

     

    
      	
              3  

            	
              Obligations
      to sell and purchase Polysilicon, forecasts and delivery
      schedule

            

    

     

    
      	
              3.1  

            	
              For
      the period from the Commercial Operation Date through 31 December 2019,
      NorSun shall be obliged to sell and SunPower shall be obliged to purchase
      Polysilicon in the quantities (expressed as a fraction of the Initial
      Plant Output) and in accordance with the schedule set forth in Exhibit
      B.  The specifications for the Polysilicon are set forth in
      Exhibit A, as such specifications may be amended from time to time by
      mutual written agreement of the parties.  SunPower shall have
      the right to reject Polysilicon (in accordance with Sections 7.3 and 7.4 below)
      which does not meet such specification.  Any such rejected
      quantities shall not constitute “actually delivered” pursuant to Section
      3.2 (ii)
below.

            

    

     

    
      	
              3.2  

            	
              This
      Agreement is a “take or pay agreement” such that NorSun is required to
      deliver and sell and SunPower is required to accept and pay for quantities
      of Polysilicon set forth in the third column of Exhibit B at the prices
      set forth in the second column of Exhibit B, subject only to i) the
      adjustments set forth in this Agreement and ii) with respect to SunPower’s
      obligation to accept and pay for the Polysilicon, that NorSun actually
      delivers such quantities at the agreed dates (“Delivery Dates”) set forth
      in Exhibit B; provided, however, in the event that JVCo fails to sell and
      deliver polysilicon to NorSun under the NorSun II Offtake Agreement (as
      defined in the JVA), NorSun shall be relieved from any delay or failure to
      fulfill its corresponding obligations hereunder except as provided in
      Section 3.4 below.  

            

    

     

    
      	
              3.3  

            	
              In
      the event that SunPower fails to order and take delivery of its contracted
      volume in a given Business Year, and such failure is not otherwise excused
      under this Agreement, NorSun shall invoice SunPower for the differential
      at full contract price and SunPower will pay the same within 30 days of
      invoice date.  SunPower specifically acknowledges and accepts
      that it will be liable for the full purchase price of volume differential
      between the quantity ordered and the contracted volume.
  

            

    

     

    
      	
              3.4  

            	
              In
      the event that NorSun fails to deliver polysilicon contracted by SunPower
      in accordance with section 3.1 above and
      Exhibit B, and such failure is not triggered by (i) JVCo’s failure to
      deliver polysilicon to NorSun under the NorSun II Offtake agreement as set
      forth in section 3.2 above, (ii) a Force
      Majeure event or (iii) delay in the completion of the Initial Plant as set
      forth in section 10, SunPower has the right
      to purchase the relevant quantity of Polysilicon from any third party
      provider (“Third Party Polysilicon”) and to have NorSun reimburse SunPower
      for the reasonable price difference, if any, between the price set forth
      in Exhibit B and the price SunPower has paid the said third party
      provider.   Notwithstanding clause (i) above, if JVCo fails
      to deliver polysilicon to NorSun under the NorSun II Offtake Agreement,
      NorSun shall be obligated to, at the cost of SunPower, exercise its rights
      to recover monetary damages from JVCo in connection therewith and
      

            

    

    
      
        
        

      

      
        
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      	 	 forward the
      amount of such recovery to SunPower up to the price difference described
      in the preceding sentence.  SunPower shall use commercially
      reasonable efforts to mitigate its damages in procuring Polysilicon from
      any third party in such circumstances. 

    

     

     

    
      	
              4  

            	
              Price
      and quantity

            

    

     

    
      	
              4.1  

            	
              The
      price and quantity of Polysilicon to be purchased by SunPower from NorSun
      are as set forth in the second and third column of Exhibit B. All prices
      are FCA NorSun, Jubail, Saudi Arabia (Incoterms 2000).  Subject
      only to the price adjustments set forth in Section 4.2, these prices are fixed for the term of this
      Agreement set forth in Section 9
      below.

            

    

     

    
      	
              4.2  

            	
              On
      January 1 of each year beginning January 1, 2015, NorSun shall adjust
      prices on the Polysilicon on an annual basis to reflect any change in the
      price of polysilicon under the NorSun II Off-take Agreement, Exhibit
      C.

            

    

     

    

     

    
      	
              5  

            	
              Purchase
      Orders

            

    

     

    
      	
              5.1  

            	
              SunPower
      shall issue to NorSun monthly purchase orders (hereinafter referred to as
      “Purchase Orders”). Except as otherwise expressly provided in this
      Agreement, SunPower shall in each Business Year issue Purchase Orders for
      a total of the Annual Quantity applicable to each Business
      Year.

            

    

     

    
      	
              5.2  

            	
              The
      quantity of Polysilicon to be delivered in each calendar month shall be
      specified in the Purchase Orders.  SunPower shall issue the
      Purchase Orders on a monthly basis, no later than three (3) months before
      the actual delivery month starts. Together with each Purchase Order,
      SunPower shall also provide an estimate of the quantity of Polysilicon to
      be delivered during the two successive months after the actual delivery
      month, provided, however, that such estimate shall not be binding upon
      SunPower or NorSun. Under no circumstances shall the quantity of
      Polysilicon to be ordered each month be less than eight percent (8%) of
      the Annual Quantity for that Business
Year.

            

    

     

    
      	
              5.3  

            	
              SunPower
      shall ensure that the Purchase Orders, unless otherwise agreed in writing
      between the parties, are issued monthly and shall, at a minimum, contain
      the following information: (i) reference to this Agreement, (ii)
      identification of the Polysilicon by proper name, price, and quantities,
      (iii) delivery instruction and delivery place, (iv) delivery date and (v)
      issue date.  SunPower shall send Purchase Orders by ordinary
      registered mail or comparable means allowing tracking, and SunPower shall
      send a copy to SunPower on the issue date either by e-mail or
      telefax.

            

    

     

    
      	
              5.4  

            	
              A
      Purchase Order shall be binding for NorSun only after it is received and
      its conditions have been confirmed by NorSun.  NorSun shall send
      confirmation of a Purchase Order by e-mail, or alternatively telefax, and
      registered letter. If NorSun fails to object to the Purchase Order within
      15 days after SunPower’s issue date, then such Purchase Order shall be
      deemed accepted by NorSun. Notwithstanding the foregoing, NorSun shall not
      

            

    

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

    

    
      
        
          
            
               

          

           

        

        
          
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        	 reject the
      quantity in a Purchase Order as long as such quantity is not more than 10%
      of the Annual Quantity.

      

       

    

     

    
      	
              5.5  

            	
              In
      the event of a discrepancy between the terms and conditions of this
      Agreement and an individual Purchase Order, the terms and conditions of
      this Agreement shall prevail unless the parties in writing agree
      otherwise.

            

    

     

    

     

    
      	
              6  

            	
              Payment.

            

    

     

    
      	
              6.1  

            	
              Payment
      terms are net 30 days from the date of each undisputed
      invoice.  Finance charges of ***% per month (***% per annum) may
      be assessed on payment past due from the payment due date to the date
      payment is received.

            

    

     

    
      	
              6.2  

            	
              If
      SunPower fails to pay invoices when due or finance charges when assessed,
      NorSun may delay future shipments.

            

    

     

    
      	
              7  

            	
              Delivery;
      Warranty; Inspection.

            

    

     

    
      	
              7.1  

            	
              Title
      and risk of loss with respect to all Polysilicon shall pass to SunPower at
      Jubail harbor, Saudi Arabia, in accordance with the FCA, (Incoterms 2000)
      rules.

            

    

     

    
      	
              7.2  

            	
              If
      Polysilicon is not delivered within six (6) weeks following the requested
      delivery date, NorSun will pay SunPower liquidated damages  at a
      rate of *** percent (***%) of the gross purchase price applicable to such
      shipment per week thereafter, up to a maximum of *** percent (***%).The
      foregoing liquidated damages address late delivery shipments only and are
      independent of NorSun’s liability (if any), and SunPower’s corresponding
      ability to recover damages, for NorSun’s failure to deliver its
      commitments pursuant to this Agreement (including pursuant to Section 3.4).

            

    

     

    
      	
              7.3  

            	
              NorSun
      warrants that the Polysilicon will be free from defects and conform to the
      specifications set forth in Exhibit A, provided that NorSun is notified of
      any defects or non-conformity within thirty (30) days after the relevant
      Polysilicon has arrived at the SunPower Delivery Point, however no later
      than three (3) months after delivery in accordance with Section 0, and that the defect or non-conformity is
      shown to be due to NorSun’s faulty design, workmanship, material or
      packaging. An inspection of the appearance of each Polysilicon delivery
      package shall be made by SunPower within 30 days after arrival of
      Polysilicon at the SunPower Delivery Point. In the event of any warranty
      claims, SunPower shall notify NorSun whereupon NorSun shall have the right
      to undertake its own inspection.  If NorSun has not received a
      written notification within the time limits set forth in this section 7.3, the Polysilicon shall be regarded as
      accepted. For the purpose of this section 7.3, the “SunPower Delivery Point” shall be
      identified no later than thirty days prior to the first scheduled delivery
      date, and SunPower may modify such location with at least 30 days prior
      written notice to NorSun.

            

    

     

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

    
      
        
           

        

         

      

      
        
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              7.4  

            	
              In
      the event that the Polysilicon does not meet the Exhibit A specifications,
      SunPower shall have the right to reject such defective Polysilicon and
      return them to NorSun. NorSun shall examine and judge the returned
      Polysilicon within thirty (30) days after receipt.  NorSun shall
      bear any and all costs and expenses incurred by SunPower related to the
      return of the defective Polysilicon and shall provide such remedies as set
      forth in Section 7.2 and (if applicable)
      Section 3.4.

            

    

     

    

     

    
      	
              8  

            	
              Packaging
      and Shipping

            

    

     

    
      	
              8.1  

            	
              NorSun
      shall bear all costs associated with packaging or storing the Polysilicon
      until delivery to SunPower pursuant to the delivery terms specified in
      Section 7.1. All Polysilicon shall be
      packaged, marked, and otherwise prepared in accordance with good
      commercial practices to reduce the risk of damage and to be packaged in
      the smallest commercially acceptable form in order to enable SunPower to
      obtain the lowest shipping rates possible (based on volume metric
      dimensions) and in accordance with all applicable federal, state and local
      packaging and transportation laws and regulations. An itemized packing
      list shall accompany each shipment.

            

    

     

    
      	
              8.2  

            	
              NorSun
      shall establish reasonable control routines in order to ensure punctual
      delivery of the Polysilicon at the agreed time and without any defects or
      non-conformities.

            

    

     

    
      	
              8.3  

            	
              A
      shipment notice shall be submitted from NorSun to SunPower by telefax or
      other means of communications, at the latest on the shipment date,
      including:

            

    

     

    a) Purchase
Order No.

    b) Brief
description of Polysilicon

    c) Invoice
amount

    d) Number of
packages

    e) Gross
weight (total) kilos

    f) Packing
list describing in detail the content of each package

    

    
      	
              8.4  

            	
              A
      delivery certificate shall be issued by NorSun to SunPower for each
      shipment of Polysilicon.

            

    

     

    

     

    
      	
              9  

            	
              Term

            

    

     

    
      	
              9.1  

            	
              The
      term of this Agreement shall be from the Effective Date through December
      31, 2019 (the “Term”). The Agreement may not be terminated prior to the
      scheduled expiration of the Term except as expressly set forth in Section
      11 and 16.

            

    

    
      
        
        

      

      
        
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              10  

            	
              Completion
      of Initial Plant.

            

    

     

    
      	
              10.1  

            	
              SunPower
      acknowledges that JVCo must erect and complete the Initial Plant in order
      to produce the Polysilicon to be supplied under this
      Agreement.  The estimated Commercial Operation Date for the
      Initial Plant is January 1, 2010 with an estimated annual production
      capacity of *** metric tons (MT).  The Parties estimate that the
      Initial Plant will achieve full commercial production of ***MT per year by
      1 January 2011.  Except pursuant to section 3.4 above, NorSun shall have no liability to
      SunPower for any delay or failure to achieve the estimated production
      capacities by such dates, including shortfalls in delivery of Polysilicon
      resulting therefrom.

            

    

     

    
      	
              10.2  

            	
              If
      the Commercial Operation Date of the Initial Plant is delayed for more
      than one year SunPower shall have the right, at its sole discretion, to
      extend the Term set forth in Section 9
      commensurately with the period of
delay.

            

    

     

    
      	
              11  

            	
              Termination.

            

    

     

    
      	
              11.1  

            	
              A
      party may, in its sole discretion, terminate this Agreement only upon the
      event of a material breach by the other party of its obligations under
      this Agreement, provided that (i) the non-breaching party submits a
      written notice of such breach to the breaching party, and (ii) the
      breaching party fails to cure such breach within sixty (60) days of
      receipt of the written notice of breach.  If the breaching Party
      rectifies any such breach within the said period, then the breach shall be
      deemed cured with respect to this section 11
      and the non-breaching shall not be entitled to terminate this
      Agreement.

            

    

     

    
      	
              11.2  

            	
              All
      outstanding payment obligations as well as Sections 7, 10 and 12 through 24 of
      this Agreement shall survive any termination of this
      Agreement.

            

    

     

    

     

    
      	
              12  

            	
              Confidentiality.

            

    

     

    
      	
              12.1  

            	
              Definition.  ”Confidential
      Information” means any information disclosed (whether prior to the
      Effective Date, on the Effective Date or after the Effective Date) by a
      Party (the “Disclosing Party”) to another Party (the “Receiving Party”),
      either directly or indirectly, in writing, orally or by drawings or
      observation of tangible objects such as documents, prototypes, samples,
      products and facilities, including, but not limited to, trade secrets,
      know-how and other intellectual property or information relating to the
      Disclosing Party’s business, operations, products, technology, together
      with any and all analyses, or other documents prepared by the Disclosing
      Party or any of its Representatives that contain or otherwise reflect any
      of the foregoing information.  “Representatives” of any Party
      means such Party’s directors, officers, employees, reinsurers, agents and
      advisors (including, without limitation, attorneys, accountants,
      consultants, bankers, financial advisors or lending
      institutions).

            

    

     

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

    
      
        
        

      

      
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              12.2  

            	
              Confidential
      Information and Exclusions.  Notwithstanding Section ‎12.1 above,
      Confidential Information shall exclude information that: (i) was
      independently developed by the Receiving Party without using any of the
      Disclosing Party’s Confidential Information; (ii) becomes known to the
      Receiving Party, without restriction, from a source other than the
      Disclosing Party that had a right to disclose it; (iii) was in the public
      domain at the time it was disclosed or becomes in the public domain
      through no act or omission of the Receiving Party; or (iv) was rightfully
      known to the Receiving Party, without restriction, at the time of
      disclosure.

            

    

     

    
      	
              12.3  

            	
              Confidentiality
      Obligation.  The Receiving Party shall treat as confidential all
      of the Disclosing Party’s Confidential Information and shall not use such
      Confidential Information except as expressly permitted under this
      Agreement.  Without limiting the foregoing, the Receiving Party
      shall use at least the same degree of care that it uses to prevent the
      disclosure of its own confidential information of like importance, but in
      no event with less than reasonable care, to prevent the disclosure of the
      Disclosing Party’s Confidential Information, subject to Section ‎12.4
      below.

            

    

     

    
      	
              12.4  

            	
              Legal
      Disclosure.  Notwithstanding anything herein to the contrary, a
      Receiving Party has the right to disclose Confidential Information without
      the prior written consent of the Disclosing Party: (i) as required by any
      court or other Governmental Authority, or by any stock exchange the shares
      of any Party are listed on; (ii) as otherwise required by law, or (iii) as
      advisable or required in connection with any government or regulatory
      filings, including without limitation, filings with any regulating
      authorities covering the relevant financial markets.  If a
      Receiving Party believes that it will be compelled by a court or other
      authority to disclose Confidential Information of the Disclosing Party, it
      shall give the Disclosing Party prompt written notice so that the
      Disclosing Party may take steps to oppose such
  disclosure.

            

    

     

    
      	
              12.5  

            	
              Remedies.  If
      a Receiving Party breaches any of its obligations under this Section ‎12, the
      Disclosing Party shall be entitled to seek equitable relief to protect its
      interest therein, including injunctive relief, as well as money
      damages.

            

    

     

    

     

    
      	
              13  

            	
              Damages
      Limitation.

            

    

     

    
      	
              13.1  

            	
              NEITHER
      PARTY SHALL BE LIABLE FOR ANY, SPECIAL, PUNITIVE, CONSEQUENTIAL OR
      INDIRECT DAMAGES ARISING OUT OF THIS
AGREEMENT.

            

    

     

    

     

    
      	
              14  

            	
              Intellectual
      Property Indemnity.

            

    

     

    
      	
              14.1  

            	
              NorSun
      shall indemnify, defend, save and hold harmless and pay any award of
      damages assessed against SunPower in any suit or cause of action alleging
      that the use of the Polysilicon infringes any patent or other intellectual
      property right of any third party.

            

    

     

    
      
        
        

      

      
        
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              15  

            	
              Taxes.

            

    

     

    
      	
              15.1  

            	
              Any
      tax or other government charge now or in the future levied upon the
      production or sale of the Polysilicon in Saudi Arabia in accordance with
      this Agreement, shall be paid by
NorSun.

            

    

     

    

     

    
      	
              16  

            	
              Force
      Majeure.

            

    

     

    
      	
              16.1  

            	
              Neither
      party shall be responsible for any delay in or failure to carry out his
      duties under the Agreement if such a delay or failure results from a
      reason of Force Majeure.

            

    

     

    
      	
              16.2  

            	
              If
      the party will be delayed in completing its obligations by Force Majeure
      there shall be granted such an extension of time as may be reasonably
      required to allow such party to perform so long as the party is using
      reasonable efforts to resolve the circumstances constituting a Force
      Majeure.  If the delay in performance continues beyond 30 days,
      the parties shall meet monthly to discuss the event of Force Majeure and
      progress by the party claiming Force Majeure in its resolution of such
      circumstances and resumption of
performance.

            

    

     

    
      	
              16.3  

            	
              “Force
      Majeure” means any event or circumstance which wholly or partly prevents
      or delays the performance of any material obligation arising under this
      Agreement, but only if and to the extent (i) such event is not within the
      reasonable control, directly or indirectly, of the Party seeking to have
      its performance obligation(s) excused thereby, (ii) the Party seeking to
      have its performance obligation(s) excused thereby has taken all
      reasonable precautions and measures in order to prevent or avoid such
      event or mitigate the effect of such event on such Party’s ability to
      perform its obligations under this Agreement and which by the exercise of
      due diligence such Party could not reasonably have been expected to avoid
      and which by the exercise of due diligence it has been unable to overcome,
      and (iii) such event is not the direct or indirect result of the
      negligence or the failure of, or caused by, the Party seeking to have its
      performance obligations excused thereby.  The following events
      could be considered as Force Majeure: war, riot, disputes between national
      labor market organizations directly involving the party claiming Force
      Majeure, fire, earthquake, extreme and unusual weather, acts of God, or
      any other causes designated Force Majeure by a court of law or arbitrator
      appointed in accordance with Section 17.2
      below.

            

    

     

    
      	
              16.4  

            	
              Delay
      or failure of the performance of a party's sub-supplier, subcontractor or
      lender, or the failure to obtain financing, government permits or license,
      shall not create a reason of Force Majeure, unless such reason occurs as a
      result of one of the events listed in Section 16.3
above.

            

    

     

    
      	
              16.5  

            	
              In
      the event of Force Majeure the party invoking a Force Majeure event shall
      notify the other party in writing thereof within seven (7) days from the
      incident in question. In such 

            

    

    
      
        
        

      

      
        
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      	 	 notice, the
      party shall inform, if possible, of the time when performance in
      accordance with this Agreement will be
resumed.

    

     

     

    
      	
              17  

            	
              Choice
      of Law.

            

    

     

    
      	
              17.1  

            	
              The
      Agreement is made in, and shall be governed and controlled in all respects
      by the laws of the England.

            

    

     

    
      	
              17.2  

            	
              Any
      conflicts arising under this Agreement shall be resolved by arbitration
      under the rules of the International Chamber of Commerce (ICC). The
      arbitration shall be conducted in English and shall take place in London,
      England.

            

    

     

    

     

    
      	
              18  

            	
              Waiver.

            

    

     

    
      	
              18.1  

            	
              Either
      party’s failure to exercise a right or remedy or such party’s acceptance
      of a partial or delinquent payment shall not operate as a waiver of any of
      such party’s rights or the other party’s obligations under the Agreement
      and shall not constitute a waiver of such party’s right to declare an
      immediate or a subsequent default.

            

    

     

    

     

    
      	
              19  

            	
              Severability.

            

    

     

    
      	
              19.1  

            	
              If
      one or more of the provisions of this Agreement shall be found, by a court
      with jurisdiction, to be illegal, invalid or unenforceable, it shall not
      affect the legality, validity or enforceability of any of the remaining
      provisions of this Agreement.  The parties agree to attempt to
      substitute for any illegal, invalid or unenforceable provision a legal,
      valid or enforceable provision that achieves to the greatest extent
      possible the economic objectives of the illegal, invalid or unenforceable
      provision.

            

    

     

    

     

    
      	
              20  

            	
              Attorney
      Fees and Costs.

            

    

     

    
      	
              20.1  

            	
              The
      parties shall bear their own expenses incurred in connection with the
      negotiation and execution of this Agreement.  In the event that
      a dispute leads to litigation or arbitration, the prevailing party shall
      be entitled to reasonable costs and fees incurred, including attorneys’
      fees.

            

    

     

    

     

    
      	
              21  

            	
              Dollars.

            

    

     

    
      	
              21.1  

            	
              All
      references to monetary amounts shall be in U.S.
  Dollars.

            

    

    
      
        
        

      

      
        
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              22  

            	
              Agreement
      Preparation.

            

    

     

    
      	
              22.1  

            	
              This
      Agreement shall be considered for all purposes as prepared through the
      joint efforts of the parties and shall not be construed against one party
      or the other as a result of the manner in which this Agreement was
      negotiated, prepared, drafted or
executed.

            

    

     

    
 

     

    
      	
              23  

            	
              Assignment.

            

    

     

    
      	
              23.1  

            	
              Neither
      party may assign its rights or obligations under this Agreement without
      the consent of the other party.

            

    

     

    

     

    
      	
              24  

            	
              Audit
      Rights.

            

    

     

    
      	
              24.1  

            	
              NorSun
      shall to the extent permissible under the NorSun II Offtake Agreement
      allow SunPower to exercise the same audits rights for JVCo books and
      records (including without limitation all quality assurance records) and
      its factories and plants, or such parts thereof that may be relevant for
      any Polysilicon quality control or technical specification compliance
      test, as NorSun have under the NorSun II Offtake Agreement. Such audit
      rights shall, if not otherwise agreed, be exercised upon SunPower’s
      request and sole expense either directly by SunPower or by NorSun on
      behalf of SunPower.

            

    

     

    

     

    

     

    
      	
              SUNPOWER
      CORPORATION:

               

               

               

              By:    /s/
      THOMAS WERNER

               

              Print
      Name:  Thomas Werner

               

              Title:  Chief
      Executive officer

               

              Date:  Jan.
      10, 2008

            	 
      	
              NORSUN
      AS

               

               

               

              By:  /s/
      JON HINDAR

               

              Print
      Name:  Jon Hindar

               

              Title:
      CEO

               

              Date:  10
      January, 2008

            

    

    

     

    
      
        
          
             

          

        

         

      

      
        
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              EXHIBIT
      A

            

    

     

    
      	
               
      

            	
              POLYSILICON
      SPECIFICATIONS

            

    

    

    

    

    

    
      	
               
      

            	
              Exhibit
      to detail the poly specs:

            

    

    

    

    

    
      	
               
      

            	
              PRODUCT
      CODE:  ________________________

            

    

    

    
      	
              1.  

            	
              Description

            

    

    

    
      	
              2.  

            	
              Bulk
      & Surface Impurity
Specifications

            

    

    

    
      	
              3.  

            	
              Size
      Specification

            

    

    

    
      	
              4.  

            	
              Certification

            

    

    

    
      	
              5.  

            	
              Packaging
      and labelling

            

    

    

    
      
        
           

        

         

      

      
        
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              EXHIBIT
      B

            

    

     

    

    
      	
               
      

            	
              PRICES,
      PAYMENT, and DELIVERY VOLUME

            

    

     

    

     

    

    
      	
              Year

            	
              Price

            	
              Volume

              [expressed
      as a fraction of the Initial Plant Output]

            	
              Expected
      volumes MT (2)

              [assuming
      full production of *** MT per year]

            
	
              2010

            	
              $***/kg

            	
              ***

            	
              ***

            
	
              2011

            	
              $***/kg

            	
              ***

            	
              ***

            
	
              2012

            	
              $***/kg

            	
              ***

            	
              ***

            
	
              2013

            	
              $***/kg

            	
              ***

            	
              ***

            
	
              2014

            	
              $***/kg

            	
              ***

            	
              ***

            
	
              2015

            	
              $***/kg
      (1)

            	
              ***

            	
              ***

            
	
              2016

            	
              $***/kg
      (1)

            	
              ***

            	
              ***

            
	
              2017

            	
              $***/kg
      (1)

            	
              ***

            	
              ***

            
	
              2018

            	
              $***/kg
      (1)

            	
              ***

            	
              ***

            
	
              2019

            	
              $***/kg
      (1)

            	
              ***

            	
              ***

            

    

    
      	
               
      

            	
              (1) Subject to price
      adjustments in accordance with section 4.2

            

    

     

    (2) The metric tons volume set
forth in column four of the table above is based on the assumption that the
Initial Plant Output will be *** MT per year. This is however only a production
target in the sense that if the Initial Output is more or less than *** MT,
SunPower’s right to purchase and NorSun’s obligation to sell Polysilicon under
this Agreement shall still be *** of all polysilicon produced at the Initial
Plant during the relevant year.

     

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

     

    
      
        
           

        

         

      

      
        
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              EXHIBIT
      C

            

    

     

    

    NorSun
Offtake II Agreement

    

    
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