Document:

exh1015

EXHIBIT 10.1.5                                                 SEMI-ANNUAL AGGREGATE CATASTROPHE EXCESS OF LOSS    REINSURANCE CONTRACT   Issued to   Dakota Fire Insurance Company   EMCASCO Insurance Company   Illinois EMCASCO Insurance Company                   

 

Effective: January 1, 2016        2 of 16        SEMI-ANNUAL AGGREGATE CATASTROPHE EXCESS OF LOSS    REINSURANCE CONTRACT      TABLE OF CONTENTS   Article  Page          Preamble  3    1  Agreement  4    2  Retentions and Limits  4    3  Term (Continuous Contract)  5    4  Commutation  5    5  Territory  5    6  Exclusions  5    7  Trade and Economic Sanctions 5    8  Premium  6    9  Definitions 6    10  Commencement & Termination 8     11  Extra Contractual Obligations/Excess of Policy Limits  8    12  Net Retained Liability 9    13  Original Conditions 10    14  No Third Party Rights 10    15  Disputes 10    16  Jurisdiction 10    17  Currency 10    18  Indemnification and Errors and Omissions 11    19  Insolvency 11    20  Savings/Severability 12    21  Offset 12    22  Governing Law 12    23  Entire Agreement 12    24  Non-Waiver 12    25  Joint & Several Liability 13    26  Mode of Execution 13      Company Signing Block 14                                Attachments        Nuclear Incident Exclusion Clause - Physical Damage -   Reinsurance - U.S.A.  15                 

 

Effective: January 1, 2016        3 of 16        SEMI-ANNUAL AGGREGATE CATASTROPHE EXCESS OF LOSS REINSURANCE   CONTRACT                           This Semi-Annual Aggregate Catastrophe Excess of Loss Reinsurance Contract (the “Contract”)   is hereby made by and between Employers Mutual Casualty Company ("EMCC") as the Reinsurer   and Dakota Fire Insurance Company, EMCASCO Insurance Company, and Illinois EMCASCO   Insurance Company (collectively, the “Companies”) as the Reinsureds.                                                                                                           

 

Effective: January 1, 2016        4 of 16              ARTICLE 1   AGREEMENT   The Reinsureds agree to cede and the Reinsurer (EMCC) agrees to accept premium and liability   that may accrue as a result of all Ultimate Net Loss to the extent further defined as follows   involving loss or losses caused by any natural or man caused perils, on business in force at the   inception date of this Contract, or written or renewed during the term of this Contract, subject to   the terms and conditions herein contained.   ARTICLE 2   RETENTIONS AND LIMITS   A.    The Reinsureds’ retention and the Reinsurer’s liability for all Ultimate Net Loss arising out of   Cat Loss Occurrences will vary during each applicable Contract Year on a semi-annual basis   as follows:   1. First Half Retention and Limit.     o For the first six months (January 1 through June 30) of each Contract Year,   the Reinsureds collectively will retain the first Twenty Million Dollars   ($20,000,000.00) of all Ultimate Net Loss arising out of Cat Loss   Occurrences during those six months (the “First Half Catastrophe Aggregate   Retention”).     o For the first six months (January 1 through June 30) of each Contract Year,   the Reinsurer will be liable for 100% of all Ultimate Net Loss arising out of   Cat Loss Occurrences above the First Half Catastrophe Aggregate   Retention, up to a limit of Twenty-Four Million Dollars ($24,000,000.00)   during those six months (the “First Half Catastrophe Aggregate Limit”).     2. Second Half Retention and Limit.   o For the last six months (July 1 through December 31) of each Contract Year,   the Reinsureds collectively will retain the first Fifteen Million Dollars   ($15,000,000.00) of all Ultimate Net Loss arising out of Cat Loss   Occurrences during those six months (the “Second Half Catastrophe   Aggregate Retention”).     o For the last six months (July 1 through December 31) of each Contract Year,   the Reinsurer will be liable for 100% of all Ultimate Net Loss arising out of   Cat Loss Occurrences above the Second Half Catastrophe Aggregate   Retention, up to a limit of Twelve Million Dollars ($12,000,000.00) during   those six months (the “Second Half Catastrophe Aggregate Limit”).           

 

Effective: January 1, 2016        5 of 16        ARTICLE 3   TERM (CONTINUOUS CONTRACT)      This Contract shall take effect at 12:01 A.M. on January 1, 2016, for Cat Loss Occurrences   commencing during the term of this Contract, and shall remain in effect for each Contract Year   thereafter until cancelled.      ARTICLE 4   COMMUTATION   Commutation of amounts due under this Contract will be accomplished through mutual   agreement of the parties within 2 years of the Contract inception, and subsequent annual   renewal(s).      ARTICLE 5   TERRITORY   The territorial limits of this Contract shall be identical to the territory limits of the Policies.   ARTICLE 6   EXCLUSIONS   This Contract shall not apply to and specifically excludes:   A. Loss or damage occasioned by war, invasion, hostilities, acts of foreign enemies, civil war,   rebellion, insurrection, military or usurped power, martial law or confiscation by order of any   government or public authority, but not excluding loss or damage which would be covered   under a standard policy form containing a standard war exclusion.   B. Mold, other than as a result of a covered peril.      ARTICLE 7   TRADE AND ECONOMIC SANCTIONS   Whenever potential coverage provided by this Contract is considered in violation of any   applicable economic or trade sanctions, any such coverage will be modified to conform to   applicable law.     

 

Effective: January 1, 2016        6 of 16           ARTICLE 8   PREMIUM   A. The Reinsureds shall collectively pay the Reinsurer a premium of Six Million Three   Hundred Ten Thousand Dollars ($6,310,000.00) for the January 1 through June 30   catastrophe aggregate coverage set out in Article 2 Section A.1 of the Contract for each   Contract Year the Contract remains in place (the “First Half Catastrophe Aggregate   Premium”).  The First Half Catastrophe Aggregate Premium may be renegotiated on an   annual basis and will be split evenly between Quarter 1 (January 1 through March 31) and   Quarter 2 (April 1 through June 30) of the Contract Year.  The First Half Catastrophe   Aggregate Premium is to be paid in two equal installments, the first installment due in April   and the second installment due in July.  Balances will be settled during the duration of the   Contract via intercompany balance transfers.   B. The Reinsureds shall collectively pay the Reinsurer a premium of One Hundred Million   Five Hundred Thirty Thousand Dollars ($1,530,000.00) for the July 1 through December   31 catastrophe aggregate coverage set out in Article 2 Section A.2 of the Contract for   each Contract Year the Contract remains in place (the “Second Half Catastrophe   Aggregate Premium”).  The Second Half Catastrophe Aggregate Premium may be   renegotiated on an annual basis and will be split evenly between Quarter 3 (July 1 through   September 30) and Quarter 4 (October 1 through December 31) of the Contract Year.    The Second Half Catastrophe Aggregate Premium is to be paid in two equal installments,   the first installment due in October and the second installment due in January.  Balances   will be settled during the duration of the Contract via intercompany balance transfers.   C. The Reinsureds shall furnish the Reinsurer with such information as may be required by   the Reinsurer for completion of its financial statements.      ARTICLE 9   DEFINITIONS   A. 1. “Ultimate Net Loss” means the catastrophe losses assumed by the Reinsureds from   the EMC Pooling Agreement, or which the Reinsureds otherwise become liable to pay.    Such loss includes Loss Adjustment Expense, any Extra Contractual Obligations, and   any Loss in Excess of Policy Limits as defined in the Extra Contractual   Obligations/Excess of Policy Limits Article for any Cat Loss Occurrence, less any   unaffiliated reinsurance recoveries received from parties providing reinsurance   coverage to the pool participants.   2. Salvages and all recoveries (including amounts due from all other reinsurance   contracts that inure to the benefit of this Contract, whether recovered or not), shall be   first deducted from such loss to arrive at the amount of liability attaching hereunder.     

 

Effective: January 1, 2016        7 of 16        3. All salvages, recoveries or payments recovered or received subsequent to loss   settlement hereunder shall be applied as if recovered or received prior to the aforesaid   settlement, and all necessary adjustments shall be made by the parties hereto.   4. The Reinsureds shall be deemed to be “liable to pay” their portion of a loss when a   judgment has been rendered that the pool participants do not plan to appeal, and/or   the pool participants have obtained a release, and/or the pool participants have   accepted a proof of loss.   5. Nothing in this clause shall be construed to mean that losses are not recoverable   hereunder until the Reinsureds’ Ultimate Net Loss has been ascertained.   B. “Loss Adjustment Expense” means costs and expenses assumed by the Reinsureds in   connection with the investigation, appraisal, adjustment, settlement, litigation, defense or   appeal of a specific claim or loss, or alleged loss, including but not limited to:   1. court costs;   2. costs of supersedeas and appeal bonds;   3. monitoring counsel expenses;   4. legal expenses and costs incurred in connection with coverage questions and legal   actions connected thereto, including but not limited to declaratory judgment actions;   5. post-judgment interest;   6. pre-judgment interest, unless included as part of an award or judgment;   7. a pro rata share of salaries and expenses of EMCC’s field employees, calculated in   accordance with the time occupied in adjusting such loss, and expenses of other   EMCC employees who have been temporarily diverted from their normal and   customary duties and assigned to the field adjustment of losses covered by this   Contract, to the extent such salaries and expenses have been specifically allocated to   a claim file; and   8. subrogation, salvage and recovery expenses.   “Loss Adjustment Expense” does not include salaries and expenses of EMCC’s employees,   except as provided in subparagraph (7) above, and office and other overhead expenses.   C. 1. “Cat Loss Occurrence(s)” shall mean any one accident, casualty, disaster, or   occurrence or series of accidents, casualties, disasters or occurrences arising out of   or following from one event and coded as such in EMCC’s claims and/or accounting   system records.              2      A "Cat Loss Occurrence" must be composed of more than one Policy.           D.       “Contract Year” means the period from January 1, 2016 through December 31, 2016, and   each respective 12-month period thereafter that this Contract continues in force shall be a   separate Contract Year.  If this Contract is terminated, however, the final Contract Year shall be   from the beginning of the then current Contract Year through the date of termination.  In the event     

 

Effective: January 1, 2016        8 of 16        this Contract expires or is terminated on a run-off basis, the run-off period shall be considered   part of the Contract Year ending on the date of expiration or termination.   E. “Policy(ies)” means any binder, policy, or contract of insurance issued, accepted or held   covered provisionally or otherwise, by or on behalf of one of the pool participants.      F. When used in reference to the Reinsureds, the term “collectively” or “collective” refers to   the Reinsureds’ total obligations or benefits as a group.  In such situations, the Reinsureds shall   share the obligations and/or benefits of this Contract according to the ratio of each Reinsured’s   participation percentage set out in the pooling agreement with EMCC to the aggregate   percentage participation of the Companies.  These participation percentages are subject to   change, and any changes to the participation percentages of the Reinsureds will apply to this   Contract.      G. The terms “EMC Pooling Agreement” or “pooling agreement” refers to the agreement   under which EMCC’s subsidiary and affiliate property and casualty insurance companies (the   “pool participants”) each cede to EMCC all of their insurance business, and assume from EMCC   an amount equal to their respective participation percentages in the pool.          ARTICLE 10   COMMENCEMENT AND TERMINATION   A. This Contract shall take effect at 12:01 A.M. on January 1, 2016, applying to losses   occurring, or claims made, as applicable, during the term of this Contract, and shall remain in   force for an indefinite period, but may be terminated on any January 1 by either party giving to   the other party 90 days prior notice.   B. At termination of this Contract, the Reinsurer shall be released from liability for losses   occurring after termination.   C. In the event that this Contract is terminated for any reason, the Reinsurer shall notify the   Iowa Insurance Division and the North Dakota Insurance Department.        ARTICLE 11   EXTRA CONTRACTUAL OBLIGATIONS/EXCESS OF POLICY LIMITS   A. This Contract shall cover Extra Contractual Obligations, as provided in the definition of   Ultimate Net Loss.  “Extra Contractual Obligations” shall be defined as those liabilities not   covered under any other provision of this Contract and that arise from the handling of any   claim on business covered hereunder, such liabilities arising because of, but not limited to,   the following:  failure by a pool participant to settle within the Policy limit, or by reason of   alleged or actual negligence, fraud or bad faith in rejecting an offer of settlement, or in the   preparation of the defense or in the trial of any action against its insured or reinsured, or in   the preparation or prosecution of an appeal consequent upon such action.     

 

Effective: January 1, 2016        9 of 16        B. This Contract shall cover Loss in Excess of Policy Limits, as provided in the definition of   Ultimate Net Loss.  “Loss in Excess of Policy Limits” shall be defined as Loss in excess of   the Policy limit, having been incurred because of, but not limited to, failure by a pool   participant to settle within the Policy limit or by reason of alleged or actual negligence, fraud   or bad faith in rejecting an offer of settlement, or in the preparation of the defense or in the   trial of any action against its insured or reinsured, or in the preparation or prosecution of an   appeal consequent upon such action.   C. An Extra Contractual Obligation and/or Loss in Excess of Policy Limits shall be deemed to   have occurred on the same date as a loss covered under the pool participants’ Policies, and   shall constitute part of the original loss.   D. For the purposes of the Loss in Excess of Policy Limits coverage hereunder, the word “Loss”   shall mean any amounts for which a pool participant would have been contractually liable to   pay had it not been for the limit of the original Policy.   E. Loss Adjustment Expense in respect of Extra Contractual Obligations and/or Loss in Excess   of Policy Limits shall be covered hereunder in the same manner as other Loss Adjustment   Expense.   F. However, this Article shall not apply where the loss has been incurred due to final legal   adjudication of fraud of a member of the Board of Directors or a corporate officer of a pool   participant acting individually, collectively or in collusion with any individual or corporation or   any other organization or party involved in the presentation, defense or settlement of any   claim covered hereunder.   G. In no event shall coverage be provided to the extent not permitted under law.   H.     Any recoveries from unaffiliated insurance coverage for insurance professional liability will   inure to the benefit of the Reinsurer.      ARTICLE 12   NET RETAINED LIABILITY   A. This Contract applies only to that portion of any loss that the Reinsureds retain net for their   own accounts.   B. The amount of the Reinsurer’s liability hereunder in respect of any loss or losses shall not   be increased by reason of the inability of the Reinsureds to collect from any other   reinsurer(s), whether specific or general, any amounts that may have become due from such   reinsurer(s), whether such inability arises from the insolvency of such other reinsurer(s) or   otherwise.        

 

Effective: January 1, 2016        10 of 16        ARTICLE 13   ORIGINAL CONDITIONS   All reinsurance under this Contract shall be subject to the same terms, conditions, waivers and   interpretations, and to the same modifications and alterations as the respective Policies of the   pool participants.  However, in no event shall this be construed in any way to provide coverage   outside the terms and conditions set forth in this Contract.   ARTICLE 14   NO THIRD PARTY RIGHTS   This Contract is solely between the Reinsureds and the Reinsurer, and in no instance shall any   insured, claimant or other third party have any rights under this Contract except as may be   expressly provided otherwise herein.      ARTICLE 15   DISPUTES   Any disputes arising out of the interpretation of this Contract shall be submitted to the respective   Inter-Company Committees of the boards of directors of EMC Insurance Group Inc. and EMCC   pursuant to the terms of the charters of the Inter-Company Committees then in effect for final   and binding resolution.      ARTICLE 16   JURISDICTION   If EMCC, as the assuming reinsurer, fails to perform its obligations under the terms of the   Contract, then EMCC, at the request of any of the Reinsureds, shall agree (a) to submit itself to   the jurisdiction of any state court in the State of Iowa, as state courts in the State of Iowa shall   have jurisdiction over any dispute between the parties related to this Contract, (b) to comply with   all requirements necessary to give the court jurisdiction, and (c) to abide by the final decision of   the court or any appellate court if there is an appeal.       ARTICLE 17   CURRENCY   Where the word “Dollars” and/or the sign “$” appear in this Contract, they shall mean United   States Dollars, and all payments hereunder shall be in United States Dollars.        

 

Effective: January 1, 2016        11 of 16                 ARTICLE 18   INDEMNIFICATION AND ERRORS AND OMISSIONS   A. The Reinsurer is reinsuring, subject to the terms and conditions of this Contract, the   obligations assumed by the Reinsureds from EMCC through the terms of the pooling   agreement.     B. Any inadvertent error, omission or delay in complying with the terms and conditions of this   Contract shall not be held to relieve either party hereto from any liability that would attach to   it hereunder if such error, omission or delay had not been made, provided such error,   omission or delay is rectified immediately upon discovery.      ARTICLE 19   INSOLVENCY   A. In the event of insolvency and the appointment of a conservator, liquidator or statutory   successor of any Reinsured, the Reinsured’s pro rata portion of any risk or obligation assumed   by the Reinsurer shall be payable to the conservator, liquidator or statutory successor on the   basis of claims allowed against the insolvent Reinsured by any court of competent jurisdiction   or by any conservator, liquidator or statutory successor of the Reinsured having authority to   allow such claims, without diminution because of that insolvency, or because the conservator,   liquidator or statutory successor has failed to pay all or a portion of any claims.      B. Payments by the Reinsurer as above set forth shall be made directly to the Reinsured or to   its conservator, liquidator or statutory successor, except as provided by applicable law and   regulation in the event of the insolvency of any Reinsured.      C. In the event of the insolvency of the Reinsurer, the liquidator, receiver, conservator or statutory   successor of the Reinsurer shall notify the Reinsureds of the pendency of a claim against the   insolvent Reinsurer on the Contract or contracts reinsured within a reasonable time after such   claim is filed in the insolvency proceeding and, during the pendency of such claim, any of the   Reinsureds may investigate such claim and interpose, at its own expense, in the proceeding   where such claim is to be adjudicated any defense or defenses which it may deem available   to the Reinsurer or its liquidator, receiver, conservator or statutory successor.        D. The original reinsured or policyholder shall not have any rights against the Reinsurer which   are not specifically set forth in this Contract, or in a specific agreement between the Reinsurer   and the original reinsured or policyholder.          

 

Effective: January 1, 2016        12 of 16        ARTICLE 20   SAVINGS/SEVERABILITY   If any provision of this Contract shall be rendered illegal or unenforceable by the laws, regulations   or public policy of any state, such provision shall be considered void in such state, but this shall   not affect the validity or enforceability of any other provision of this Contract, nor the enforceability   of such provision in any other jurisdiction.  In no event shall coverage be provided to the extent   that such coverage is not permitted under Iowa law.  However, no provisions under this Article   shall render any provisions of paragraph B of the Exclusions Article inoperable.    ARTICLE 21   OFFSET   The Reinsurer and the Reinsureds shall have the right to offset any balance or amounts due from   one party to the other under the terms of this Contract and the Pooling Agreement described in   Article 9 Section G of this Contract.  The party asserting the right of offset may exercise such right   any time whether the balances due are on account of premiums or losses or otherwise. In the   event of the insolvency of any party, offset shall be as permitted by applicable law.   ARTICLE 22   GOVERNING LAW   This Contract shall be governed as to performance, administration and interpretation by the laws   of the State of Iowa, exclusive of conflict of law rules.  However, with respect to credit for   reinsurance, the rules of all applicable states shall apply.   ARTICLE 23   ENTIRE AGREEMENT   This Contract sets forth all of the duties and obligations between the Reinsureds and the   Reinsurer and supersedes any and all prior or contemporaneous written agreements with respect   to matters referred to in this Contract.  This Contract may not be modified or changed except by   an amendment to this Contract in writing signed by both parties, and any modification or   amendment to this Contract must receive prior approval from the Iowa Insurance Division and the   North Dakota Insurance Department to be effective.  However, this Article shall not be construed   as limiting the admissibility of evidence regarding the formation, interpretation, purpose or intent   of this Contract.   ARTICLE 24   NON-WAIVER   The failure of a Reinsured or the Reinsurer to insist on compliance with this Contract or to exercise   any right or remedy shall not constitute a waiver of any rights contained in this Contract nor   prevent either party from thereafter demanding full and complete compliance, nor prevent either   party from exercising such remedy in the future.      

 

Effective: January 1, 2016        13 of 16        ARTICLE 25   JOINT AND SEVERAL LIABILITY   Each Reinsured shall be jointly and severally liable for the obligations of the Reinsureds   collectively.  In the event that any Reinsured becomes insolvent or is dissolved, the remaining   Reinsureds will participate in this Contract according to the ratio of their revised participation in   the pooling agreement with EMCC to the aggregate participation of the remaining Reinsureds.     ARTICLE 26   MODE OF EXECUTION   A. This Contract may be executed by:   1. an original written ink signature of paper documents;   2. an exchange of facsimile copies showing the original written ink signature of paper   documents;   3. electronic signature technology employing computer software and a digital signature   or digitizer pen pad to capture a person’s handwritten signature in such a manner that   the signature is unique to the person signing, is under the sole control of the person   signing, is capable of verification to authenticate the signature and is linked to the   document signed in such a manner that if the data is changed, such signature is   invalidated.   B. The use of any one or a combination of these methods of execution shall constitute a legally   binding and valid signing of this Contract.  This Contract may be executed in one or more   counterparts, each of which, when duly executed, shall be deemed an original.                                

 

Effective: January 1, 2016        14 of 16        In WITNESS WHEREOF, the parties hereto, by their respective duly authorized officers, have   executed this Semi-Annual Aggregate Catastrophe Excess of Loss Reinsurance Contract on the   dates recorded below.      Dakota Fire Insurance Company   Employers Mutual Casualty Company            By:   /s/ Scott R. Jean                             By:   /s/ Bruce G. Kelley        Scott R. Jean       Bruce G. Kelley   Executive Vice President – Finance & Analytics  President & CEO         Date:   February 17, 2016                               Date:   February 15, 2016           Illinois EMCASCO Insurance Company      By:   /s/ Scott R. Jean                                        Scott R. Jean        Executive Vice President – Finance & Analytics          Date:   February 17, 2016                                       EMCASCO Insurance Company                               By:   /s/ Scott R. Jean                                       Scott R. Jean        Executive Vice President – Finance & Analytics          Date:   February 17, 2016                                                  

 

Effective: January 1, 2016        15 of 16        NUCLEAR INCIDENT EXCLUSION CLAUSE - PHYSICAL DAMAGE - REINSURANCE -   U.S.A.   1. This Reinsurance does not cover any loss or liability accruing to the Reassureds, directly or   indirectly, and whether as Insurer or Reinsurer, from any Pool of Insurers or Reinsurers   formed for the purpose of covering Atomic or Nuclear Energy risks.   2. Without in any way restricting the operation of paragraph (1) of this clause, this Reinsurance   does not cover any loss or liability accruing to the Reassureds, directly or indirectly and   whether as Insurer or Reinsurer, from any insurance against Physical Damage (including   business interruption or consequential loss arising out of such Physical Damage) to:   I. Nuclear reactor power plants including all auxiliary property on the site, or   II. Any other nuclear reactor installation, including laboratories handling radioactive   materials in connection with reactor installations, and “critical facilities” as such, or   III. Installations for fabricating complete fuel elements or for processing substantial   quantities of “special nuclear material”, and for reprocessing, salvaging, chemically   separating, storing or disposing of “spent” nuclear fuel or waste materials, or   IV. Installations other than those listed in paragraph (2) III above using substantial   quantities of radioactive isotopes or other products of nuclear fission.   3. Without in any way restricting the operations of paragraphs (1) and (2) hereof, this   Reinsurance does not cover any loss or liability by radioactive contamination accruing to the   Reassureds, directly or indirectly, and whether as Insurer or Reinsurer, from any insurance   on property which is on the same site as a nuclear reactor power plant or other nuclear   installation and which normally would be insured therewith except that this paragraph (3)   shall not operate:   (a) where Reassureds do not have knowledge of such nuclear reactor power plant or   nuclear installation, or   (b) where said insurance contains a provision excluding coverage for damage to property   caused by or resulting from radioactive contamination, however caused. However on   and after 1st January 1960 this sub-paragraph (b) shall only apply provided the said   radioactive contamination exclusion provision has been approved by the   Governmental Authority having jurisdiction thereof.   4. Without in any way restricting the operations of paragraphs (1), (2) and (3) hereof, this   Reinsurance does not cover any loss or liability by radioactive contamination accruing to the   Reassureds, directly or indirectly, and whether as Insurer or Reinsurer, when such   radioactive contamination is a named hazard specifically insured against.   5. It is understood and agreed that this clause shall not extend to risks using radioactive   isotopes in any form where the nuclear exposure is not considered by the Reassured to be   the primary hazard.   6. The term “special nuclear material” shall have the meaning given it in the Atomic Energy Act   of 1954 or by any law amendatory thereof.   7. Reassureds to be sole judge of what constitutes:     

 

Effective: January 1, 2016        16 of 16        (a) substantial quantities, and   (b) the extent of installation, plant or site.   Note:  Without in any way restricting the operation of paragraph (1) hereof, it is understood and   agreed that   (a) all policies issued by the Reassureds on or before 31st December 1957 shall be free   from the application of the other provisions of this Clause until expiry date or   31st December 1960 whichever first occurs whereupon all the provisions of this Clause   shall apply.   (b) with respect to any risk located in Canada policies issued by the Reassureds on or   before 31st December 1958 shall be free from the application of the other provisions   of this Clause until expiry date or 31st December 1960 whichever first occurs   whereupon all the provisions of this Clause shall apply.   12/12/57   NMA 1119      NOTES: Wherever used herein the terms:   “Reassureds” shall be understood to mean “Companies”, “Reinsureds”,   “Reassureds” or whatever other term is used in the attached   reinsurance document to designate the reinsured companies.   “Agreement” shall be understood to mean “Agreement”, Contract, “Policy” or   whatever other term is used to designate the attached reinsurance   document.   “Reinsurer” shall be understood to mean “Reinsurer”, “Underwriter” or whatever   other term is used in the attached reinsurance document to   designate the reinsurer.Exhibit

Exhibit 10.24

SUNPOWER CORPORATION 
 
INDEMNIFICATION AGREEMENT 
 
This Indemnification Agreement (this “Agreement”) is entered into as of [date] (the “Effective Date”), by and between SunPower Corporation, a Delaware corporation (the “Company”), and [name] (“Indemnitee”).
 
RECITALS 
 
A. Indemnitee is either a member of the board of directors of the Company (the “Board of Directors”) or an officer of the Company, or both, and in such capacity or capacities, or otherwise as an Agent (as hereinafter defined) of the Company, is performing a valuable service for the Company. 
 
B. The stockholders of the Company have adopted the Restated Certificate of Incorporation of the Company (the “Certificate of Incorporation”) and Amended and Restated By-Laws (the “By-Laws”) which provide for the indemnification of the directors, officers, employees and other agents of the Company, including persons serving at the request or for the convenience of, or otherwise benefiting, the Company in such capacities with other Enterprises (as hereinafter defined), as authorized by the General Corporation Law of the State of Delaware, as amended (the “DGCL”). The DGCL, Certificate of Incorporation and By-Laws, by their non-exclusive nature, permit contracts between the Company and its directors, officers, employees and other agents with respect to indemnification of such persons.

C. Indemnitee is willing to serve, continue to serve and to take on additional service for or on behalf of the Company on the condition that Indemnitee be indemnified as herein provided, and in order to induce Indemnitee to serve or to continue to serve as a director, officer, or employee of the Company, the Company has determined and agreed to enter into this Agreement with Indemnitee.
 
D. It is intended that Indemnitee shall be paid promptly by the Company all amounts necessary to effectuate in full the indemnity provided herein.
 
NOW, THEREFORE, in consideration of the premises and the covenants in this Agreement, and of Indemnitee continuing to serve the Company as an Agent and intending to be legally bound hereby, the parties hereto agree as follows: 
 
1. Services by Indemnitee. Indemnitee agrees to serve (a) as a director or an officer of the Company, or both, so long as Indemnitee is duly appointed or elected and qualified in accordance with the applicable provisions of the Certificate of Incorporation and By-Laws of the Company, and until such time as Indemnitee resigns or fails to stand for election or is removed from Indemnitee’s position, or (b) as an Agent of the Company. Indemnitee may from time to time also perform other services at the request or for the convenience of, or otherwise benefiting, the Company. Indemnitee may at any time and for any reason resign or be removed from such position (subject to any other contractual obligation or other obligation imposed by operation of law), in which event the Company shall have no obligation under this Agreement to continue Indemnitee in any such position. 
 
2. Indemnification. Subject to the limitations set forth herein and in Section 7 hereof, the Company hereby agrees to indemnify Indemnitee as follows: 
 
(a) Except as otherwise specifically provided herein, the Company shall, with respect to any Proceeding (as hereinafter defined) associated with Indemnitee’s being an Agent of the Company, indemnify Indemnitee to the fullest extent permitted by applicable law and the Certificate of Incorporation of the Company and By-Laws in effect on the date hereof. The Company’s indemnification obligations set forth in this Agreement shall apply (i) in respect of Indemnitee’s past, present and future service as an Agent of the Company and (ii) regardless of whether Indemnitee is serving as an Agent of the Company at the time any such Expenses (as hereinafter defined) or Liabilities (as hereinafter defined) are incurred. 

For purposes of this Agreement, the meaning of the phrase “to the fullest extent permitted by applicable law” shall include but not be limited to, the fullest extent permitted by any provision of the DGCL or the corresponding provision of any successor statute. To the extent that a change in the DGCL or other applicable law, Certificate of Incorporation or By-Laws, whether by amendment, statute or judicial decision, (1) permits greater indemnification, contribution or advancement of Expenses than would be afforded currently under the Company’s Certificate of Incorporation, By-Laws or this Agreement, it is the intent of the parties hereto that Indemnitee shall enjoy by this Agreement the greater benefits so afforded by such change or (2) limits rights with respect to indemnification, contribution or advancement of Expenses, it is the intent of the parties hereto 

1

Exhibit 10.24

that the rights with respect to indemnification, contribution or advancement of Expenses in effect prior to such change shall remain in full force and effect to the extent permitted by applicable law.

(b) Notwithstanding any other provision of this Agreement, to the extent that Indemnitee by reason of being an Agent of the Company is a witness in any Proceeding to which Indemnitee is not a party, Indemnitee shall be indemnified against all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection therewith.

(c) The right to indemnification conferred herein and in the Certificate of Incorporation and By-Laws shall be presumed to have been relied upon by Indemnitee in serving or continuing to serve the Company as an Agent and shall be enforceable as a contract right. 
 
3. Advancement of Expenses. All reasonable Expenses incurred by or on behalf of Indemnitee (including costs of enforcement of this Agreement) shall be advanced from time to time by the Company to Indemnitee within twenty (20) days after the receipt by the Company of a written request for an advance of Expenses, whether prior to or after final disposition of a Proceeding (except to the extent that there has been a Final Adverse Determination (as hereinafter defined) that Indemnitee is not entitled to be indemnified for such Expenses), including, without limitation, any Proceeding brought by or in the right of the Company. Advances shall be unsecured and interest free. Advances shall include any and all reasonable Expenses incurred pursuing an action to enforce this right of advancement, including Expenses incurred preparing and forwarding statements to the Company to support the advances claimed. The written request for an advancement of any and all Expenses under this paragraph shall contain reasonable detail of the Expenses incurred by Indemnitee. In the event that such written request shall be accompanied by an affidavit of counsel to Indemnitee to the effect that such counsel has reviewed such Expenses and that such Expenses are reasonable in such counsel’s view, then such expenses shall be deemed reasonable in the absence of clear and convincing evidence to the contrary. By execution of this Agreement, Indemnitee undertakes to repay such advanced amounts if it shall ultimately be determined by a Final Adverse Determination that Indemnitee is not entitled to be indemnified by the Company. Indemnitee shall not be required to reimburse the Company for any advances pursuant to Section 3 until a Final Adverse Determination is made with respect to Indemnitee’s entitlement to indemnification. Advances shall be made without regard to Indemnitee’s ability to repay such amounts and without regard to Indemnitee’s ultimate entitlement to indemnification under the other provisions of this Agreement. In the event that the Company shall breach its obligation to advance Expenses under this Section 3, the parties hereto agree that Indemnitee’s remedies available at law would not be adequate and that Indemnitee would be entitled to specific performance. 
 
4. Reserved. 
 
5. Presumptions and Effect of Certain Proceedings. 

(a) Upon making a request for indemnification, except as required by applicable law, Indemnitee shall be presumed to be entitled to indemnification under this Agreement and the Company shall have the burden of proof to overcome that presumption in reaching any contrary determination. Neither the failure of any person, persons or entity to have made a determination prior to the commencement of any action pursuant to this Agreement that indemnification is proper in the circumstances because Indemnitee has met the applicable standard of conduct, nor an actual determination by any person, persons or entity that Indemnitee has not met such applicable standard of conduct, shall be a defense to the action or create a presumption that Indemnitee has not met the applicable standard of conduct. The termination of any Proceeding by judgment, order, settlement, arbitration award or conviction, or upon a plea of nolo contendere or its equivalent shall not of itself (except as otherwise expressly provided in this Agreement) adversely affect the right of Indemnitee to indemnification or create a presumption that Indemnitee did not act in good faith and in a manner which he reasonably believed to be in or not opposed to the best interests of the Company or, with respect to any criminal Proceeding, that Indemnitee had reasonable cause to believe that Indemnitee’s conduct was unlawful. 

(b) For purposes of any determination of good faith, Indemnitee shall be deemed to have acted in good faith if Indemnitee’s action is in good faith reliance on the records or books of account of any Enterprise, including financial statements, or on information supplied to Indemnitee by the officers of such Enterprise in the course of their duties, or on the advice of legal counsel for such Enterprise or on information or records given or reports made to such Enterprise by an independent certified public accountant or by an appraiser or other expert selected by such Enterprise. The provisions of this Section 5(b) shall not be deemed to be exclusive or to limit in any way the other circumstances in which Indemnitee may be deemed or found to have met the applicable standard of conduct set forth in this Agreement.

(c) The knowledge and/or actions, or failure to act, of any other director, trustee, partner, managing member, fiduciary, officer, agent or employee of any Enterprise shall not be imputed to Indemnitee for purposes of determining any right to indemnification under this Agreement.

2

Exhibit 10.24

 
6. Procedure for Determination of Entitlement to Indemnification. 
 
(a) Whenever Indemnitee believes that Indemnitee is entitled to indemnification pursuant to this Agreement, Indemnitee shall submit a written request for indemnification to the Company. Any request for indemnification shall include sufficient documentation or information reasonably available to Indemnitee for the determination of entitlement to indemnification. In any event, Indemnitee may submit Indemnitee’s claim(s) for indemnification from time to time and at such time(s) as Indemnitee deems appropriate in Indemnitee’s sole discretion not to exceed five (5) years after the date of any judgment, order, settlement, dismissal, arbitration award, conviction, acceptance of a plea of nolo contendere or its equivalent or other disposition or partial disposition of any Proceeding or any other event that could enable the Company to determine Indemnitee’s entitlement to indemnification or final determination (a “Disposition”), whichever is the later date for which Indemnitee requests indemnification. The Secretary or other appropriate officer shall, promptly upon receipt of Indemnitee’s request for indemnification, advise the Board of Directors in writing that Indemnitee has made such request. Determination of Indemnitee’s entitlement to indemnification shall be made as soon as is reasonably practicable (but in any event not later than thirty (30) days) after the later of (i) the Company’s receipt of Indemnitee’s written request for such indemnification or (ii) the selection of Independent Legal Counsel, if any, pursuant to Section 6(b) hereof; provided that any request for indemnification for Liabilities shall be made after a Disposition thereof in a Proceeding. If it is determined that Indemnitee is entitled to indemnification, payment to Indemnitee shall be made within ten (10) days after such determination. If the person or persons so empowered to make a determination shall have failed to make the requested determination within such 30-day period after any Disposition, the requisite determination that Indemnitee is entitled to indemnification shall be deemed to have been made absent a prohibition of such indemnification under applicable law; provided, however, that such 30-day period may be extended for a reasonable time, not to exceed an additional thirty (30) days, if the person, persons or entity making the determination with respect to entitlement to indemnification in good faith requires such additional time for the obtaining or evaluating of documentation or information relating thereto.
 
(b) The Company shall be entitled to select the method by which Indemnitee’s entitlement to indemnification will be determined; provided, however, that if there is a Change in Control of the Company, Independent Legal Counsel (as hereinafter defined) shall determine whether Indemnitee is entitled to indemnification, which determination shall be made in a written opinion to the Board of Directors, a copy of which shall be delivered to Indemnitee. Indemnitee’s entitlement to indemnification shall be determined by one of the following methods which shall be at the election of the Board of Directors: 
 
(i) a majority vote of Disinterested Directors (as hereinafter defined), even though less than a quorum;
 
(ii) by a committee of Disinterested Directors designated by majority vote of the Disinterested Directors, even though less than a quorum; or
 
(iii) if there are no such Disinterested Directors or, if such Disinterested Directors so direct, by Independent Legal Counsel, whose determination shall be made in a written opinion to the Board of Directors, a copy of which shall be delivered to Indemnitee. 
 
7. Specific Limitations on Indemnification. Notwithstanding anything in this Agreement to the contrary, the Company shall not be obligated under this Agreement to make any payment to Indemnitee with respect to any Proceeding: 
 
(a) To the extent that payment is actually made to Indemnitee under any insurance policy or other indemnity provision, or is made to Indemnitee by the Company or other Enterprise otherwise than pursuant to this Agreement. Notwithstanding the availability of such insurance, Indemnitee also may claim indemnification from the Company pursuant to this Agreement by assigning to the Company any claims under such insurance to the extent Indemnitee is paid by the Company; 

(b) For Liabilities in connection with Proceedings settled without the Company’s consent, which consent, however, shall not be unreasonably withheld;
 
(c) For (i) an accounting of profits made from the purchase or sale by Indemnitee of securities of the Company within the meaning of Section 16(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or similar provisions of any state statutory or common law or (ii) any reimbursement of the Company by Indemnitee of any bonus or other incentive-based or equity-based compensation or of any profits realized by Indemnitee from the sale of securities of the Company, as required in each case under the Exchange Act (including any such reimbursements that arise from an accounting restatement of the Company pursuant to Section 304 of the Sarbanes-Oxley Act of 2002 (the “Sarbanes-Oxley Act”), or the payment to the Company of profits arising from the purchase and sale by Indemnitee of securities in violation of Section 306 of the Sarbanes-Oxley Act);

3

Exhibit 10.24

 
(d) To the extent it would be otherwise prohibited by law, if so established by a judgment or other final adjudication adverse to Indemnitee; or 

(e) Prior to a Change in Control, in connection with a Proceeding (or any part of any Proceeding) commenced by Indemnitee against the Company or its directors, officers, employees or other indemnitees (other than a Proceeding commenced by Indemnitee to enforce Indemnitee’s rights under this Agreement or any cross claim or counterclaim asserted by the Indemnitee) unless (i) the commencement of such Proceeding (or any part of any Proceeding) was authorized by the Board of Directors or (ii) the Company provides the indemnification, in its sole discretion, pursuant to the powers vested in the Company under applicable law. 
 
8. Fees and Expenses of Independent Legal Counsel. The Company agrees to pay the reasonable fees and expenses of Independent Legal Counsel should such Independent Legal Counsel be retained to make a determination of Indemnitee’s entitlement to indemnification pursuant to Section 6(b) hereof, and to fully indemnify such Independent Legal Counsel against any and all expenses and losses incurred by it arising out of or relating to this Agreement or its engagement pursuant hereto. 
 
9. Remedies of Indemnitee. 
 
(a) In the event that (i) a determination pursuant to Section 6 hereof is made that Indemnitee is not entitled to indemnification, (ii) advances of Expenses are not made pursuant to this Agreement, (iii) payment has not been timely made following a determination of entitlement to indemnification pursuant to this Agreement, (iv) the Company fails to maintain the Policies required under Section 11 hereof or (v) Indemnitee otherwise seeks enforcement of this Agreement, Indemnitee shall be entitled to a final adjudication in the Court of Chancery of the State of Delaware (the “Delaware Court”) of the remedy sought. Alternatively, unless court approval is required by law for the indemnification sought by Indemnitee, Indemnitee at Indemnitee’s option may seek an award in arbitration to be conducted by a single arbitrator pursuant to the commercial arbitration rules of the American Arbitration Association now in effect, which award is to be made within thirty (30) days following the filing of the demand for arbitration. The Company shall not oppose Indemnitee’s right to seek any such adjudication or arbitration award. In any such proceeding or arbitration, Indemnitee shall be presumed to be entitled to indemnification and advancement of Expenses under this Agreement and the Company shall have the burden of proof to overcome that presumption. 
 
(b) In the event that a determination that Indemnitee is not entitled to indemnification, in whole or in part, has been made pursuant to Section 6 hereof, the decision in the judicial proceeding or arbitration provided in paragraph (a) of this Section 9 shall be made de novo and Indemnitee shall not be prejudiced by reason of a determination that Indemnitee is not entitled to indemnification. 
 
(c) If a determination that Indemnitee is entitled to indemnification has been made pursuant to Section 6 hereof or otherwise pursuant to the terms of this Agreement, the Company shall be bound by such determination in the absence of a misrepresentation or omission of a material fact by Indemnitee in connection with such determination. 
 
(d) The Company shall be precluded from asserting that the procedures and presumptions of this Agreement are not valid, binding and enforceable. The Company shall stipulate in any such court or before any such arbitrator that the Company is bound by all of the provisions of this Agreement and is precluded from making any assertion to the contrary. 
 
(e) Expenses reasonably incurred by Indemnitee in connection with Indemnitee’s request for (i) indemnification under, seeking enforcement of or to recover damages for breach of this Agreement or (ii) recovery or advances under any insurance Policies (as hereinafter defined) maintained by the Company, in each case, shall be borne by the Company when and as incurred by Indemnitee irrespective of any Final Adverse Determination that Indemnitee is not entitled to indemnification, contribution advancement or insurance recovery, as the case may be.
 
10. Partial Indemnification. Notwithstanding any other provisions of this Agreement, to the fullest extent permitted by applicable law, if Indemnitee is entitled under any provision of this Agreement to indemnification by the Company for some or a portion of the Liabilities or Expenses actually and reasonably incurred in connection with any action, suit or proceeding (including an action, suit or proceeding brought by or on behalf of the Company), but not, however, for all of the total amount thereof, the Company shall nevertheless indemnify Indemnitee for the portion of such Liabilities and Expenses actually and reasonably incurred to which Indemnitee is entitled. If Indemnitee is not wholly successful in such Proceeding, but is successful, on the merits or otherwise, as to one or more but less than all claims, issues or matters in such Proceeding, the Company shall, to the fullest extent permitted by applicable law, indemnify Indemnitee against all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf incurred in connection with each successfully resolved claim, 

4

Exhibit 10.24

issue or matter. For purposes of this Section 10 and without limitation, the termination of any claim, issue or matter in such a Proceeding by dismissal, with or without prejudice, shall be deemed to be a successful result as to such claim, issue or matter.

11. Maintenance of Insurance.

(a) The Company shall obtain and maintain in effect for the benefit of Indemnitee until the end of the Indemnification Period (as hereinafter defined), policies of insurance with insurance companies that permit resolution of all disputes in the United States and rated “A-” or higher by A.M. Best Company (or an equivalent rating agency) to provide Indemnitee with coverage for losses from wrongful acts and omissions and to ensure the Company’s performance of its indemnification obligations under this Agreement (collectively, the “Policies”). The Policies shall, unless otherwise approved by a majority of the then current Independent Directors (as hereinafter defined), satisfy each of the following requirements: (i) be non-cancelable and non-rescindable and (ii) provide Indemnitee with rights and benefits that are at least as favorable as those provided to Indemnitee under the Company’s directors and officers insurance policies existing on the Effective Date. Indemnitee shall be covered by the Policies in accordance with their terms, with such coverage primary to any other coverage Indemnitee may have for the Company’s obligations to Indemnitee under this Agreement. In all such Policies, Indemnitee shall be afforded rights and benefits at least as favorable as those accorded to the most favorably insured of the Company’s directors and officers. Upon request by Indemnitee, the Company shall provide copies of all Policies obtained and maintained in accordance with this Section 11. 

(b) At the time of the receipt of a notice of a claim pursuant to the terms hereof, the Company shall give prompt notice of the commencement of such proceeding to the insurers in accordance with the procedures set forth in the respective policies. The Company shall thereafter take all commercially reasonable actions to cause such insurers to pay, on behalf of Indemnitee, all amounts payable as a result of such proceeding in accordance with the terms of such policies. The failure or refusal of any such insurer to pay any such amount shall not affect or impair the obligations of the Company under this Agreement.

12. Modification, Amendment, Waiver, Termination and Cancellation. 

(a) No supplement, modification, termination, cancellation or amendment of this Agreement shall be binding unless executed in writing by both of the parties hereto.

(b) No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions hereof (whether or not similar), nor shall such waiver constitute a continuing waiver. Unless otherwise expressly provided herein, no delay on the part of any party hereto in exercising any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any waiver on the part of any party hereto of any right, power or privilege hereunder operate as a waiver of any other right, power or privilege hereunder nor shall any single or partial exercise of any right, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, power or privilege hereunder. 
 
13. Subrogation and Contribution. 

(a) In the event of payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who shall execute all papers required and shall do everything that may be necessary to secure such rights, including the execution of such documents necessary to enable the Company effectively to bring suit to enforce such rights.

(b) To the fullest extent permissible under applicable law, if the indemnification provided for in this Agreement is unavailable to Indemnitee for any reason whatsoever, the Company, in lieu of indemnifying Indemnitee, shall contribute to the amount incurred by Indemnitee, whether for judgments, fines, penalties, excise taxes, amounts paid or to be paid in settlement or for Expenses, in connection with any claim relating to an indemnifiable event under this Agreement, in such proportion as is deemed fair and reasonable in light of all of the circumstances of such Proceeding in order to reflect (i) the relative benefits received by the Company and Indemnitee as a result of the event(s) and transaction(s) giving rise to such Proceeding; and (ii) the relative fault of the Company (and its directors, officers, employees and agents) and Indemnitee in connection with such event(s) and transaction(s). 

14. Notice by Indemnitee and Defense of Claim. Indemnitee shall promptly notify the Company in writing upon being served with any summons, citation, subpoena, complaint, indictment, information or other document relating to any matter, whether civil, criminal, administrative or investigative, but the omission so to notify the Company will not relieve it from any liability that it may have to Indemnitee if such omission does not prejudice the Company’s rights. If such omission does prejudice the Company’s rights, the Company will be relieved from liability only to the extent of such prejudice. Notwithstanding the foregoing, such omission will not relieve the Company from any liability that it may have to Indemnitee 

5

Exhibit 10.24

otherwise than under this Agreement. With respect to any Proceeding as to which Indemnitee notifies the Company of the commencement thereof: 
 
(a) The Company will be entitled to participate therein at its own expense; and 
 
(b) The Company jointly with any other indemnifying party similarly notified will be entitled to assume the defense thereof, with counsel reasonably satisfactory to Indemnitee; provided, however, that the Company shall not be entitled to assume the defense of any Proceeding if there has been a Change in Control or if Indemnitee shall have reasonably concluded that there may be a conflict of interest between the Company and Indemnitee with respect to such Proceeding. After notice from the Company to Indemnitee of its election to assume the defense thereof, the Company will not be liable to Indemnitee under this Agreement for any Expenses subsequently incurred by Indemnitee in connection with the defense thereof, other than reasonable costs of investigation or as otherwise provided below. Indemnitee shall have the right to employ Indemnitee’s own counsel in such Proceeding, but the fees and expenses of such counsel incurred after notice from the Company of its assumption of the defense thereof shall be at the expense of Indemnitee unless: 
 
(i) the employment of counsel by Indemnitee has been authorized by the Company; 
 
(ii) Indemnitee shall have reasonably concluded that counsel engaged by the Company may not adequately represent Indemnitee due to, among other things, actual or potential differing interests; or 
 
(iii) the Company shall not in fact have employed counsel to assume the defense in such Proceeding or shall not in fact have assumed such defense and be acting in connection therewith with reasonable diligence; in each of which cases the fees and expenses of such counsel shall be at the expense of the Company. 
 
(c) The Company shall not settle any Proceeding in any manner that would impose any penalty or limitation on Indemnitee without Indemnitee’s written consent; provided, however, that Indemnitee will not unreasonably withhold Indemnitee’s consent to any proposed settlement. 
 
15. Notices. All notices, requests, demands and other communications hereunder shall be in writing and shall be deemed to have been duly given if (a) delivered by hand and receipted for by the party to whom said notice or other communication shall have been directed, (b) delivered by confirmed electronic mail or facsimile if sent during normal business hours of the recipient, and if not so confirmed, then on the next business day, (c) mailed by certified or registered mail with postage prepaid, on the third business day after the date on which it is so mailed or (d) one (1) day after deposit with a nationally recognized overnight courier, specifying next day delivery, with written verification of receipt: 
 
(i) If to Indemnitee, to the address or facsimile number set forth on the signature page hereto. 
 
(ii) If to the Company, to: 
 
SunPower Corporation 
77 Rio Robles
San Jose, California 95134
Attn: Corporate Secretary
Fax No.: +1-408-240-5404
E-mail: lisa.bodensteiner@sunpower.com
 
or to such other address as may have been furnished to Indemnitee by the Company or to the Company by Indemnitee, as the case may be. 
 
16. Nonexclusivity. The rights of Indemnitee hereunder shall not be deemed exclusive of any other rights to which Indemnitee may be entitled under applicable law, the Company’s Certificate of Incorporation or By-Laws, or any agreements, vote of stockholders, resolution of the Board of Directors or otherwise, and to the extent that during the Indemnification Period the rights of the then existing directors and officers are more favorable to such directors or officers than the right currently provided to Indemnitee thereunder or under this Agreement, Indemnitee shall be entitled to the full benefits of such more favorable rights. 
 

6

Exhibit 10.24

17. Certain Definitions. 
 
(a) “Agent” shall mean any person who is or was, or who has consented to serve as, a director, officer, employee, agent, fiduciary, joint venturer, partner, manager, trustee, board of directors’ committee member or other official of the Company, a subsidiary or an affiliate of the Company or any other Enterprise of which Indemnitee is or was serving at the request of, for the convenience of, or otherwise to benefit the Company or a subsidiary of the Company. 
 
(b) “Change in Control” shall mean the occurrence of any of the following: 
 
(i) Both (A) any “person” (as defined below) is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing at least twenty percent (20%) of the total voting power represented by the Company’s then outstanding voting securities and (B) the beneficial ownership by such person of securities representing such percentage has not been approved by a majority of the “continuing directors” (as defined below); 
 
(ii) Any “person” is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company representing at least fifty percent (50%) of the total voting power represented by the Company’s then outstanding voting securities; 
 
(iii) A change in the composition of the Board of Directors occurs, as a result of which fewer than two-thirds of the incumbent directors are directors who either (A) had been directors of the Company on the “look-back date” (as defined below) (the “Original Directors”) or (B) were elected, or nominated for election, to the Board of Directors with the affirmative votes of at least a majority in the aggregate of the Original Directors who were still in office at the time of the election or nomination and directors whose election or nomination was previously so approved (the “continuing directors”); 
 
(iv) The stockholders of the Company approve a merger or consolidation of the Company with any other corporation, if such merger or consolidation would result in the voting securities of the Company outstanding immediately prior thereto representing (either by remaining outstanding or by being converted into voting securities of the surviving entity) fifty percent (50%) or less of the total voting power represented by the voting securities of the Company or such surviving entity outstanding immediately after such merger or consolidation; or 
 
(v) The stockholders of the Company approve (A) a plan of complete liquidation of the Company or (B) an agreement for the sale or disposition by the Company of all or substantially all of the Company’s assets. 
 
For purposes of Subsections (i) and (ii) above, the term “person” shall have the same meaning as when used in Sections 13(d) and 14(d) of the Exchange Act, but shall exclude (1) a trustee or other fiduciary holding securities under an employee benefit plan of the Company or of a parent or subsidiary of the Company, (2) a corporation owned directly or indirectly by the stockholders of the Company in substantially the same proportions as their ownership of the common stock of the Company, (3) any person who is ordinarily engaged in business as an underwriter or initial purchaser of securities and has acquired such securities in a bona fide firm commitment offering pursuant to an agreement with the Company, whether pursuant to an offering registered under the Securities Act of 1933, as amended, or an exemption therefrom, (4) a “clearing agency” (as defined in Section 3(a)(23) of the Exchange Act) and has acquired such securities solely as result of such status and (5) Total, any of its subsidiaries or affiliates or its parent company. 
 
For purposes of Subsection (iii) above, the term “look-back date” shall mean the later of (x) the Effective Date and (y) the date twenty-four (24) months prior to the date of the event that may constitute a “Change in Control.” 
 
Any other provision of this Section 17(b) notwithstanding, the term “Change in Control” shall not include a transaction, if undertaken at the election of the Company, the result of which is to sell all or substantially all of the assets of the Company to another corporation (the “surviving corporation”); provided that the surviving corporation is owned directly or indirectly by the stockholders of the Company immediately following such transaction in substantially the same proportions as their ownership of the Company’s common stock immediately preceding such transaction; and provided, further, that the surviving corporation expressly assumes this Agreement. 
 
(c) “Disinterested Director” shall mean a director of the Company who is not or was not a party to or otherwise involved in the Proceeding in respect of which indemnification is being sought by Indemnitee. 
 

7

Exhibit 10.24

(d) “Enterprise” shall mean any of the Company’s subsidiaries or affiliates and any other corporation, limited liability company, partnership, joint venture, trust, employee benefit plan or other organization.

(e) “Expenses” shall include all direct and indirect costs (including, without limitation, attorneys’ fees, retainers, court costs, transcripts, fees of experts, witness fees, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees, all other disbursements or out-of-pocket expenses and reasonable compensation for time spent by Indemnitee for which Indemnitee is otherwise not compensated by the Company or any third party) actually and reasonably incurred in connection with (i) the investigation, prosecution, defense, preparation for the prosecution or defense, settlement or appeal (including the premium, security for, and other costs relating to any cost bond, supersedeas bond, or other appeal bond or its equivalent) of, being or preparing to be a witness in, or otherwise participating in a Proceeding or (ii) establishing or enforcing a right to indemnification under this Agreement, applicable law or otherwise; provided, however, that “Expenses” shall not include any Liabilities.
 
(f) “Final Adverse Determination” shall mean that a determination that Indemnitee is not entitled to indemnification shall have been made pursuant to Section 6 hereof and either (i) a final adjudication in the Delaware Court or decision of an arbitrator pursuant to Section 9(a) hereof shall have denied Indemnitee’s right to indemnification hereunder (as to which all rights of appeal therefrom have been exhausted or lapsed) or (ii) Indemnitee shall have failed to file a complaint in a Delaware court or seek an arbitrator’s award pursuant to Section 9(a) hereof for a period of one hundred twenty (120) days after the determination made pursuant to Section 6 hereof. 
 
(g) “Indemnification Period” shall mean the period for which Indemnitee may have any liability or potential liability by virtue of serving as a director or officer of the Company, or both, or as an Agent of the Company, including, without limitation, the final termination of all pending Proceedings in respect of which Indemnitee is granted rights of indemnification or advancement of Expenses hereunder and of any Proceeding commenced by Indemnitee pursuant to Section 9 hereof relating thereto.
 
(h) “Independent Directors” shall mean any non-employee members of the Board of Directors who are not nominated representatives of Total S.A. or any of its affiliates (other than the Company).

(i) “Independent Legal Counsel” shall mean a law firm or a member of a firm selected by the Company and not objected to by Indemnitee or, if there has been a Change in Control, selected by Indemnitee and not objected to by the Company that neither is presently nor in the past five (5) years has been retained to represent: (i) the Company or any of its subsidiaries or affiliates, or Indemnitee or any Enterprise of which Indemnitee was or is a director, officer, employee or agent, or any subsidiary or affiliate of such an Enterprise, in any material matter, or (ii) any other party to the Proceeding giving rise to a claim for indemnification hereunder. Notwithstanding the foregoing, the term “Independent Legal Counsel” shall not include any person who, under the applicable standards of professional conduct then prevailing, would have a conflict of interest in representing either the Company or Indemnitee in an action to determine Indemnitee’s right to indemnification under this Agreement. After the selection of such Independent Legal Counsel, the Company or Indemnitee, as the case may be, shall promptly give written notice to Indemnitee or the Company, as the case may be. In either event, Indemnitee or the Company, as the case may be, may, within ten (10) days after such written notice of selection shall have been received, deliver to the Company or to Indemnitee, as the case may be, a written objection to such selection; provided, however, that such objection may be asserted only on the ground that such counsel does not meet the independence requirements defined in this Subsection (i), and the objection shall set forth with particularity the factual basis of such assertion. Absent a proper and timely objection, the person so selected shall act as Independent Legal Counsel. If such written objection is so made and substantiated, the Independent Legal Counsel so selected may not serve as Independent Legal Counsel unless and until such objection is withdrawn or a court of competent jurisdiction has determined that such objection is without merit. If, within twenty (20) days after the later of submission by Indemnitee of a written request for indemnification pursuant to Section 6(a) hereof and the final disposition of the Proceeding, no Independent Legal Counsel shall have been selected and not objected to, either the Company or Indemnitee may petition a court of competent jurisdiction for resolution of any objection which shall have been made by the Company or Indemnitee to the other’s selection of Independent Legal Counsel and for the appointment as Independent Legal Counsel of a person selected by the court or by such other person as the court shall designate, and the person with respect to whom all objections are so resolved or the person so appointed shall act as Independent Legal Counsel under Section 6(b) hereof. Upon the due commencement of any judicial proceeding or arbitration pursuant to Section 9 hereof, the Independent Legal Counsel shall be discharged and relieved of any further responsibility in such capacity (subject to the applicable standards of professional conduct then prevailing).
 
(j) “Liabilities” shall mean any losses or liabilities of any type whatsoever including, but not limited to, any judgments, fines, ERISA excise taxes and penalties, penalties and amounts paid in settlement (including all interest assessments and other 

8

Exhibit 10.24

charges paid or payable in connection with or in respect of such judgments, fines, penalties or amounts paid in settlement) of any Proceeding. 
 
(k) “Proceeding” shall mean any threatened, pending or completed action, claim, counterclaim, cross claim, suit, arbitration, alternate dispute resolution mechanism, investigation, inquiry, administrative hearing or any other proceeding whether civil, criminal, administrative or investigative, including any appeal therefrom, and whether instituted by or on behalf of the Company or any other party, or any inquiry or investigation that Indemnitee in good faith believes might lead to the institution of any such action, suit or other proceeding hereinabove listed in which Indemnitee was, is or will be involved as a party, potential party, non-party witness or otherwise, in each case that is associated with Indemnitee’s being an Agent of the Company, or by reason of any action taken (or failure to act) by the Indemnitee or of any action (or failure to act) on the Indemnitee’s part while serving as an Agent of the Company. 

(l) For the purposes of this Agreement:

References to “Company” shall include, in addition to the resulting or surviving corporation, any constituent corporation (including any constituent of a constituent) absorbed in a consolidation or merger which, if its separate existence had continued, would have had power and authority to indemnify its directors, officers, employees or agents, so that if Indemnitee is or was an Agent of such constituent corporation or is or was serving at the request or for the convenience of, or otherwise benefiting, such constituent corporation as an Agent of another Enterprise, then Indemnitee shall stand in the same position under the provisions of this Agreement with respect to the resulting or surviving corporation as Indemnitee would have with respect to such constituent corporation if its separate existence had continued.

References to “serving at the request or for the convenience of, or otherwise benefiting, the Company” shall include any service as a director, officer, employee or agent of the Company which imposes duties on, or involves services by, such director, officer, employee or agent with respect to an employee benefit plan, its participants or beneficiaries; and a person who acted in good faith and in a manner he reasonably believed to be in the best interests of the participants and beneficiaries of an employee benefit plan shall be deemed to have acted in a manner “not opposed to the best interests of the Company” as referred to in this Agreement.

References to “including” shall mean “including, without limitation,” regardless of whether the words “without limitation” actually appear, references to the words “herein,” “hereof” and “hereunder” and other words of similar import shall refer to this Agreement as a whole and not to any particular paragraph, subparagraph, section, subsection or other subdivision.
 
18. Binding Effect; Duration and Scope of Agreement. This Agreement shall be binding upon and inure to the benefit of and be enforceable by the parties hereto and their respective successors and assigns (including any direct or indirect successor by purchase, merger, consolidation or otherwise to all or substantially all of the business or assets of the Company), spouses, heirs, executors, administrators, legatees and personal and legal representatives. The Company shall require and cause any successor (whether direct or indirect by purchase, merger, consolidation or otherwise) to all or substantially all, or a substantial part of the business or assets of the Company, by written agreement in form and substance satisfactory to Indemnitee, expressly to assume and agree to perform this Agreement in the manner and to the same extent that the Company would be required to perform if no such succession had taken place. This Agreement shall continue in effect during the Indemnification Period, regardless of whether Indemnitee continues to serve as an Agent. 
 
19. Severability. If any provision or provisions of this Agreement (or any portion thereof) shall be held to be invalid, illegal or unenforceable for any reason whatsoever: 
 
(a) the validity, legality and enforceability of the remaining provisions of this Agreement (including each portion of any Section of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby; 

(b) such provision or provisions shall be deemed reformed to the extent necessary to conform to applicable law and to give the maximum effect to the intent of the parties hereto; and 
 
(c) to the fullest extent legally possible, the provisions of this Agreement (including each portion of any Section of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) shall be construed so as to give effect to the intent of any provision held invalid, illegal or unenforceable. 
 
20. Governing Law. This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of Delaware without regard to its conflict of laws rules. 

9

Exhibit 10.24

 
21. Consent to Jurisdiction. Except with respect to any arbitration commenced by Indemnitee pursuant to Section 9 hereof, the Company and Indemnitee each irrevocably and unconditionally (i) agree that any action or proceeding arising out of or in connection with this Agreement shall be brought only in the Delaware Court, and not in any other state or federal court in the United States of America or any court in any other country, (ii) consent to submit to the exclusive jurisdiction of the Delaware Court for purposes of any action or proceeding arising out of or in connection with this Agreement, (iii) waive any objection to the laying of venue of any such action or proceeding in the Delaware Court, and (iv) waive, and agree not to plead or to make, any claim that any such action or proceeding brought in the Delaware Court has been brought in an improper or inconvenient forum. 
 
22. Entire Agreement. This Agreement represents the entire agreement between the parties hereto, and there are no other agreements, contracts or understandings between the parties hereto with respect to the subject matter of this Agreement, except as specifically referred to herein or as provided in Section 16 hereof. 
 
23. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall for all purposes be deemed to be an original but all of which together shall constitute one and the same Agreement. 

IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by a duly authorized officer and Indemnitee has executed this Agreement as of the date first above written. 
 
	
				
	 
	 
	SUNPOWER CORPORATION

	 
	 
	a Delaware corporation

	 
	 
	 
	 

	 
	 
	By:  
	 

	 
	 
	Printed Name:
	 

	 
	 
	Title:
	 

	 
	 
	 
	 

	 
	 
	INDEMNITEE
	 

	 
	 
	 
	 

	 
	 
	Signature: 
	 

	 
	 
	 
	 

	 
	 
	Printed Name:
	 

	 
	 
	 
	 

	 
	 
	Address: 
	 

	 
	 
	 
	 

	 
	 
	Telephone: 
	 

	 
	 
	Facsimile: 
	 

	 
	 
	E-mail: 
	 

	 
	 
	 
	 

10

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