x
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ANNUAL
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
|
For
the fiscal year ended December 28, 2008
|
||
OR
|
||
o
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TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
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Delaware
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94-3008969
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|
(State
or other jurisdiction of
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(I.R.S.
Employer
|
|
incorporation
or organization)
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Identification
No.)
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Title
of each class
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Name
of each exchange on which registered
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Class
A Common Stock. $0.001 par value
|
Nasdaq
Global Select Market
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Class
B Common Stock. $0.001 par value
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Nasdaq
Global Select Market
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Large
Accelerated Filer x
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Accelerated
Filer ¨
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Non-accelerated
filer ¨
(Do
not check if a smaller reporting company)
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Smaller
reporting company ¨
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Page
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1
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11
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27
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27
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27
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27
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28
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31
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33
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52
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54
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102
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102
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103
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104
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104
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104
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104
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104
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105
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•
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superior
performance, including the ability to generate up to 50% more power per
unit area;
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•
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superior
aesthetics, with our uniformly black surface design that eliminates highly
visible reflective grid lines and metal interconnect ribbons;
and
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•
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more
efficient use of silicon, a key raw material used in the manufacture of
solar cells.
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•
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superior
performance delivered by maximizing energy delivery and financial return
through systems technology design;
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•
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superior
systems design to meet customer needs and reduce cost, including
non-penetrating, fast roof installation technologies;
and
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•
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superior
channel breadth and delivery capability including turnkey
systems.
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Year Ended
|
||||||
December
28,
2008
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December
30,
2007
|
December
31,
2006
|
||||
Significant
components customers:
|
||||||
Conergy
AG
|
*
|
*
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25%
|
|||
Solon
AG
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*
|
*
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24%
|
|||
PowerLight**
|
n.a.
|
n.a.
|
16%
|
|||
General
Electric Company***
|
*
|
*
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10%
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*
|
denotes
less than 10% during the period
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**
|
acquired
by us on January 10, 2007
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***
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includes
its subcontracting partner, Plexus
Corporation
|
Year Ended
|
|||||
December
28,
2008
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December
30,
2007
|
||||
Significant
systems customers:
|
|||||
Naturener
Group
|
18%
|
*
|
|||
Sedwick
Corporate, S.L.
|
11%
|
*
|
|||
SolarPack
|
*
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18%
|
|||
MMA
Renewable Ventures
|
*
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16%
|
*
|
denotes
less than 10% during the period
|
|
•
|
levelized
cost of energy, or LCOE, an evaluation of the life-cycle energy costs and
life-cycle energy production;
|
|
•
|
power
efficiency and performance;
|
|
•
|
price;
|
|
•
|
aesthetic
appearance of solar cells and
panels;
|
|
•
|
strength
of distribution relationships; and
|
|
•
|
timeliness
of new product introductions.
|
|
•
|
System
output performance guaranties;
|
|
•
|
System
maintenance;
|
|
•
|
Liquidated
damage payments or customer termination rights if the system we are
constructing is not commissioned within specified timeframes or other
construction milestones are not
achieved;
|
|
|
|
•
|
Guaranties
of certain minimum residual value of the system at specified future dates;
and
|
|
•
|
System
put-rights whereby we could be required to buy-back a customer’s system at
fair value on specified future
dates.
|
|
•
|
expanding
our existing manufacturing facilities and developing new manufacturing
facilities, which would increase our fixed costs and, if such facilities
are underutilized, would negatively impact our results of
operations;
|
|
•
|
ensuring
delivery of adequate polysilicon and
ingots;
|
|
•
|
developing
more efficient wafer-slicing
methods;
|
|
•
|
enhancing
our customer resource management and manufacturing management
systems;
|
|
•
|
implementing
and improving additional and existing administrative, financial and
operations systems, procedures and controls, including the need to update
and integrate our financial internal control systems in SP Systems and in
our Philippines facility with those of our San Jose, California
headquarters;
|
|
•
|
hiring
additional employees;
|
|
•
|
expanding
and upgrading our technological
capabilities;
|
|
•
|
manage
multiple relationships with our customers, suppliers and other
third-parties;
|
|
•
|
maintaining
adequate liquidity and financial resources;
and
|
|
•
|
continuing
to increase our revenues from
operations.
|
|
•
|
multiple,
conflicting and changing laws and regulations, export and import
restrictions, employment laws, regulatory requirements and other
government approvals, permits and
licenses;
|
|
•
|
difficulties
and costs in staffing and managing foreign operations as well as cultural
differences;
|
|
•
|
potentially
adverse tax consequences associated with our permanent establishment of
operations in more countries;
|
|
•
|
relatively
uncertain legal systems, including potentially limited protection for
intellectual property rights, and laws, regulations and policies which
impose additional restrictions on the ability of foreign companies to
conduct business in certain countries or otherwise place them at a
competitive disadvantage in relation to domestic
companies;
|
|
•
|
inadequate
local infrastructure and developing telecommunications
infrastructures;
|
|
•
|
financial
risks, such as longer sales and payment cycles and greater difficulty
collecting accounts receivable;
|
|
•
|
currency
fluctuations and government-fixed foreign exchange rates and the effects
of currency hedging activity or inability to hedge currency fluctuations;
and
|
|
•
|
political
and economic instability, including wars, acts of terrorism, political
unrest, boycotts, curtailments of trade and other business
restrictions.
|
|
•
|
we
may experience cost overruns, delays, equipment problems and other
operating difficulties;
|
|
•
|
we
may experience difficulties expanding our processes to larger production
capacity;
|
|
•
|
our
custom-built equipment may take longer and cost more to engineer than
planned and may never operate as designed;
and
|
|
•
|
we
are incorporating first-time equipment designs and technology
improvements, which we expect to lower unit capital and operating costs,
but this new technology may not be
successful.
|
|
•
|
insufficient
experience with technologies and markets in which the acquired business is
involved, which may be necessary to successfully operate and integrate the
business;
|
|
•
|
problems
integrating the acquired operations, personnel, technologies or products
with the existing business and
products;
|
|
•
|
diversion
of management time and attention from the core business to the acquired
business or joint venture;
|
|
•
|
potential
failure to retain key technical, management, sales and other personnel of
the acquired business or joint
venture;
|
|
•
|
difficulties
in retaining relationships with suppliers and customers of the acquired
business, particularly where such customers or suppliers compete with
us;
|
|
•
|
reliance
upon joint ventures which we do not
control;
|
|
•
|
subsequent
impairment of the acquired assets, including intangible assets;
and
|
|
•
|
assumption
of liabilities including, but not limited to, lawsuits, tax examinations,
warranty issues, etc.
|
|
•
|
people
may not be deterred from misappropriating our technologies despite the
existence of laws or contracts prohibiting
it;
|
|
•
|
policing
unauthorized use of our intellectual property may be difficult, expensive
and time-consuming, and we may be unable to determine the extent of any
unauthorized use;
|
|
•
|
the
laws of other countries in which we market our solar cells, such as some
countries in the Asia/Pacific region, may offer little or no protection
for our proprietary technologies;
and
|
|
•
|
reports
we file in connection with government-sponsored research contracts are
generally available to the public and third-parties may obtain some
aspects of our sensitive confidential
information.
|
SPWRA
|
SPWRB*
|
|||||||||||||||
For
the year ended December 28, 2008
|
High
|
Low
|
High
|
Low
|
||||||||||||
Fourth
quarter
|
$
|
77.25
|
$
|
19.00
|
$
|
71.47
|
$
|
11.94
|
||||||||
Third quarter
|
97.55
|
61.23
|
—
|
—
|
||||||||||||
Second quarter
|
99.58
|
72.71
|
—
|
—
|
||||||||||||
First quarter
|
131.29
|
54.95
|
—
|
—
|
||||||||||||
For
the year ended December 30, 2007
|
High
|
Low
|
High
|
Low
|
||||||||||||
Fourth
quarter
|
$
|
164.49
|
$
|
81.50
|
$
|
—
|
$
|
—
|
||||||||
Third quarter
|
86.93
|
59.64
|
—
|
—
|
||||||||||||
Second quarter
|
65.55
|
45.84
|
—
|
—
|
||||||||||||
First
quarter
|
48.11
|
35.40
|
—
|
—
|
*
|
Our
class B common stock started trading publicly on September 30,
2008.
|
Period
|
Total Number
of
Shares
Purchased(1)
(in
thousands)
|
Average
Price
Paid
Per Share
|
Total
Number of Shares Purchased as
Part of Publicly Announced Plans
or Programs
|
Maximum
Number of Shares That May Yet
Be Purchased Under the Publicly Announced
Plans or Programs
|
|||
October
27, 2008 through November 23, 2008
|
15
|
$34.95
|
—
|
—
|
|||
November
24, 2008 through December 28, 2008
|
9
|
$32.82
|
—
|
—
|
|||
Total
|
24
|
$34.16
|
—
|
—
|
(1)
|
The
total number of shares purchased includes shares surrendered to satisfy
tax withholding obligations in connection with the vesting of restricted
stock issued to employees.
|
Plan
Category
|
Number of securities to
be issued upon exercise
of outstanding
options,
warrants
and rights
|
Weighted average
exercise
price of
outstanding
options,
warrants
and
rights
|
Number of securities remaining
available
for future issuance
under
equity compensation
plans
(excluding securities
reflected
in the first column)
|
||||
Equity
compensation plans approved by security holders
|
2,008
|
$8.99
|
1,268
|
||||
Equity
compensation shares not approved by security holders
|
17
|
(1)
|
$2.00
|
—
|
|||
Total
|
2,025
|
(2)
|
$8.93
|
1,268
|
(1)
|
Represents
one option to purchase shares of class A common stock issued to one
SunPower employee on June 17, 2004 with an exercise price of $2.00,
vesting over five years.
|
(2)
|
This
table excludes options to purchase an aggregate of approximately 520,000
shares of class A common stock, at a weighted average exercise price of
$9.03 per share, that we assumed in connection with the acquisition of
PowerLight (now known as SP Systems) in January
2007.
|
11/17/05
|
12/30/05
|
12/31/06
|
12/30/07
|
12/28/08
|
||||||||||||||||
SunPower
Corporation
|
$
|
100.00
|
$
|
133.56
|
$
|
146.05
|
$
|
514.93
|
$
|
139.02
|
||||||||||
NASDAQ
Market Index
|
100.00
|
99.32
|
108.77
|
120.45
|
68.92
|
|||||||||||||||
Evergreen
Solar, Inc.
|
100.00
|
89.27
|
63.45
|
144.34
|
23.55
|
|||||||||||||||
Energy
Conversion Devices, Inc.
|
100.00
|
130.15
|
108.53
|
105.78
|
74.77
|
|||||||||||||||
Suntech
Power Holdings Co., Ltd.(1)
|
181.67
|
226.73
|
545.27
|
68.60
|
||||||||||||||||
First
Solar, Inc.(2)
|
149.20
|
1,330.20
|
675.05
|
(1)
|
The
common stock of Suntech Power Holdings Co., Ltd. started trading publicly
on December 14, 2005.
|
(2)
|
The
common stock of First Solar, Inc. started trading publicly on November 17,
2006.
|
Successor
Company
|
Predecessor
Company
|
||||||||||||||||||||||||
Year Ended
|
Nov.
9, 2004
Through
Jan.
2, 2005
|
Dec.
29, 2003
Through
Nov.
8, 2004
|
|||||||||||||||||||||||
(In
thousands, except per share data)
|
December
28,
2008
|
December
30,
2007
|
December
31,
2006
|
January
1,
2006
|
|||||||||||||||||||||
Consolidated
Statements of Operations Data
|
|||||||||||||||||||||||||
Revenue:
|
|||||||||||||||||||||||||
Systems
|
$
|
820,632
|
$
|
464,178
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
|||||||||||||
Components
|
614,287
|
310,612
|
236,510
|
78,736
|
4,055
|
6,830
|
|||||||||||||||||||
Total
revenue
|
1,434,919
|
774,790
|
236,510
|
78,736
|
4,055
|
6,830
|
|||||||||||||||||||
Cost
of revenue:
|
|||||||||||||||||||||||||
Cost of systems
revenue
|
653,569
|
386,511
|
—
|
—
|
—
|
—
|
|||||||||||||||||||
Cost of components
revenue
|
417,669
|
240,475
|
186,042
|
74,353
|
6,079
|
9,498
|
|||||||||||||||||||
Total cost of
revenue
|
1,071,238
|
626,986
|
186,042
|
74,353
|
6,079
|
9,498
|
|||||||||||||||||||
Gross
margin
|
363,681
|
147,804
|
50,468
|
4,383
|
(2,024
|
)
|
(2,668
|
)
|
|||||||||||||||||
Operating
income (loss)
|
168,467
|
2,342
|
19,107
|
(12,985
|
)
|
(4,552
|
)
|
(19,499
|
)
|
||||||||||||||||
Income
(loss) before income taxes and equity in earnings of unconsolidated
investees
|
147,584
|
3,560
|
28,461
|
(15,793
|
)
|
(5,609
|
)
|
(23,302
|
)
|
||||||||||||||||
Income
(loss) before equity in earnings of unconsolidated
investees
|
78,216
|
9,480
|
26,516
|
(15,843
|
)
|
(5,609
|
)
|
(23,302
|
)
|
||||||||||||||||
Net
income (loss)
|
$
|
92,293
|
$
|
9,202
|
$
|
26,516
|
$
|
(15,843
|
)
|
$
|
(5,609
|
)
|
$
|
(23,302
|
)
|
||||||||||
Net
income (loss) per share of class A and class B common
stock:
|
|||||||||||||||||||||||||
Basic(1)
|
$
|
1.15
|
$
|
0.12
|
$
|
0.40
|
$
|
(0.68
|
)
|
$
|
(2,804.50
|
)
|
$
|
(5.51
|
)
|
||||||||||
Diluted(1)
|
$
|
1.09
|
$
|
0.11
|
$
|
0.37
|
$
|
(0.68
|
)
|
$
|
(2,804.50
|
)
|
$
|
(5.51
|
)
|
||||||||||
Weighted-average
shares:
|
|||||||||||||||||||||||||
Basic
(1)
|
80,522
|
75,413
|
65,864
|
23,306
|
2
|
4,230
|
|||||||||||||||||||
Diluted(1)
|
84,446
|
81,227
|
71,087
|
23,306
|
2
|
4,230
|
(1)
|
As
of September 15, 2008, the date on which Lehman filed a petition for
protection under Chapter 11 of the U.S. bankruptcy code and LBIE commenced
administrative proceedings (analogous to bankruptcy) in the United
Kingdom, approximately 2.9 million shares of class A common stock lent to
LBIE in connection with the 1.25% debentures are included in basic
weighted-average common shares. Basic weighted-average common shares
exclude approximately 1.8 million shares of class A common stock lent to
CSI in connection with the 0.75% debentures. See Note 15 of Notes to our
Consolidated Financial Statements for a detailed explanation of the
determination of the shares used in computing basic and diluted net income
(loss) per share.
|
(In
thousands)
|
December
28,
2008
|
December
30,
2007
|
December
31,
2006
|
January
1,
2006
|
January
2,
2005
|
|||||||||||||||
Consolidated
Balance Sheets Data
|
||||||||||||||||||||
Cash,
cash equivalents and short-term investments (excluding restricted
cash)
|
$
|
219,510
|
$
|
390,667
|
$
|
182,092
|
$
|
143,592
|
$
|
3,776
|
||||||||||
Working
capital (deficiency)
|
396,849
|
93,953
|
228,269
|
155,243
|
(54,314
|
)
|
||||||||||||||
Total
assets
|
2,076,135
|
1,653,738
|
576,836
|
317,654
|
89,646
|
|||||||||||||||
Long-term
debt
|
54,598
|
—
|
—
|
—
|
—
|
|||||||||||||||
Convertible
debt
|
423,608
|
425,000
|
—
|
—
|
—
|
|||||||||||||||
Deferred
tax liability
|
8,115
|
6,213
|
46
|
336
|
—
|
|||||||||||||||
Customer
advances, net of current portion
|
91,359
|
60,153
|
27,687
|
28,438
|
—
|
|||||||||||||||
Other
long-term liabilities
|
25,950
|
14,975
|
—
|
—
|
—
|
|||||||||||||||
Notes
payable to Cypress, net of current portion
|
—
|
—
|
—
|
—
|
21,673
|
|||||||||||||||
Convertible
preferred stock
|
—
|
—
|
—
|
—
|
8,552
|
|||||||||||||||
Total
stockholders’ equity (deficit)
|
1,021,374
|
864,090
|
488,771
|
258,650
|
(10,664
|
)
|
•
|
Level
1—Valuations based on quoted prices in active markets for identical assets
or liabilities that we have the ability to access. Since valuations are
based on quoted prices that are readily and regularly available in an
active market, valuation of these products does not entail a significant
degree of judgment. Financial assets utilizing Level 1 inputs include most
money market funds and bank notes.
|
•
|
Level
2—Valuations based on quoted prices in markets that are not active or for
which all significant inputs are observable, directly or indirectly.
Financial assets utilizing Level 2 inputs include foreign currency option
contracts and forward exchange contracts and some corporate securities.
The selection of a particular model to value an OTC foreign currency
derivative depends upon the contractual term of, and specific risks
inherent with, the instrument as well as the availability of pricing
information in the market. We generally use similar models to value
similar instruments. Valuation models require a variety of inputs,
including contractual terms, market prices, yield curves, credit curves
and measures of volatility. For OTC foreign currency derivatives that
trade in liquid markets, such as generic forward, option and swap
contracts, model inputs can generally be verified and model selections do
not involve significant management
judgment.
|
•
|
Level
3—Valuations based on inputs that are unobservable and significant to the
overall fair value measurement. Financial assets utilizing Level 3 inputs
include money market funds comprised of the Reserve Primary Fund and the
Reserve International Liquidity Fund, collectively referred to as the
Reserve Funds, and corporate securities comprised of auction rate
securities. We use the market approach to estimate the price that would be
received to sell our Reserve Funds in an orderly transaction between
market participants ("exit price"). We reviewed the underlying holdings
and estimated the price of underlying fund holdings to estimate the fair
value of these funds. We use an income approach valuation model to
estimate the exit price of the auction rate securities, which is derived
as the weighted average present value of expected cash flows over various
periods of illiquidity, using a risk adjusted discount rate that is based
on the credit risk and liquidity risk of the
securities.
|
Year Ended
|
||||||||||||
(Dollars
in thousands)
|
December
28,
2008
|
December
30,
2007
|
December
31,
2006
|
|||||||||
Systems
revenue
|
$
|
820,632
|
$
|
464,178
|
$
|
—
|
||||||
Components
revenue
|
614,287
|
310,612
|
236,510
|
|||||||||
Total
revenue
|
$
|
1,434,919
|
$
|
774,790
|
$
|
236,510
|
Year Ended
|
|||||||
December
28,
2008
|
December
30,
2007
|
December
31,
2006
|
|||||
Significant
customers:
|
Business
Segment
|
||||||
Naturener
Group
|
Systems
|
18%
|
*
|
—%
|
|||
Sedwick
Corporate, S.L.
|
Systems
|
11%
|
*
|
—%
|
|||
SolarPack
|
Systems
|
*
|
18%
|
—%
|
|||
MMA
Renewable Ventures
|
Systems
|
*
|
16%
|
—%
|
|||
Conergy
AG
|
Components
|
*
|
*
|
25%
|
|||
Solon
AG
|
Components
|
*
|
*
|
24%
|
|||
PowerLight**
|
Components
|
n.a.
|
n.a.
|
16%
|
|||
General
Electric Company***
|
Components
|
*
|
*
|
10%
|
*
|
denotes
less than 10% during the period
|
**
|
acquired
by us on January 10, 2007
|
***
|
includes
its subcontracting partner, Plexus
Corporation
|
Year Ended
|
||||||||||||
(Dollars
in thousands)
|
December
28,
2008
|
December
30,
2007
|
December
31,
2006
|
|||||||||
Cost
of systems revenue
|
$
|
653,569
|
$
|
386,511
|
$
|
—
|
||||||
Cost
of components revenue
|
417,669
|
240,475
|
186,042
|
|||||||||
Total
cost of revenue
|
$
|
1,071,238
|
$
|
626,986
|
$
|
186,042
|
||||||
Total
cost of revenue as a percentage of revenue
|
75
|
%
|
81
|
%
|
79
|
%
|
||||||
Total
gross margin percentage
|
25
|
%
|
19
|
%
|
21
|
%
|
Year
Ended
|
||||||||
(Dollars
in thousands)
|
December
28,
2008
|
December
30,
2007
|
||||||
Amortization
of purchased intangible assets
|
$
|
7,691
|
$
|
20,085
|
||||
Stock-based
compensation
|
10,745
|
8,187
|
||||||
Factory
pre-operating costs
|
1,069
|
939
|
||||||
All
other cost of revenue
|
634,064
|
357,300
|
||||||
Total
cost of revenue
|
$
|
653,569
|
$
|
386,511
|
||||
Cost
of systems revenue as a percentage of revenue
|
80
|
%
|
83
|
%
|
||||
Total
gross margin percentage
|
20
|
%
|
17
|
%
|
Year
Ended
|
||||||||||||
(Dollars
in thousands)
|
December
28,
2008
|
December
30,
2007
|
December
31,
2006
|
|||||||||
Amortization
of purchased intangible assets
|
$
|
4,305
|
$
|
4,767
|
$
|
4,690
|
||||||
Stock-based
compensation
|
8,144
|
4,213
|
846
|
|||||||||
Impairment
of long-lived assets
|
2,203
|
—
|
—
|
|||||||||
Factory
pre-operating costs
|
1,870
|
3,964
|
383
|
|||||||||
All
other cost of revenue
|
401,147
|
227,531
|
180,123
|
|||||||||
Total
cost of revenue
|
$
|
417,669
|
$
|
240,475
|
$
|
186,042
|
||||||
Cost
of components revenue as a percentage of revenue
|
68
|
%
|
77
|
%
|
79
|
%
|
||||||
Total
gross margin percentage
|
32
|
%
|
23
|
%
|
21
|
%
|
Year Ended
|
||||||||||||
(Dollars
in thousands)
|
December
28,
2008
|
December
30,
2007
|
December
31,
2006
|
|||||||||
Research
& development
|
$
|
21,474
|
$
|
13,563
|
$
|
9,684
|
||||||
As
a percentage of revenue
|
1
|
%
|
2
|
%
|
4
|
%
|
Year Ended
|
||||||||||||
(Dollars
in thousands)
|
December
28,
2008
|
December
30,
2007
|
December
31,
2006
|
|||||||||
Sales,
general & administrative
|
$
|
173,740
|
$
|
108,256
|
$
|
21,677
|
||||||
As
a percentage of revenue
|
12
|
%
|
14
|
%
|
9
|
%
|
Year Ended
|
||||||||||||
(Dollars
in thousands)
|
December
28,
2008
|
December
30,
2007
|
December
31,
2006
|
|||||||||
Purchased
in-process research and development
|
$ |
—
|
$ |
9,575
|
$ |
—
|
||||||
As
a percentage of revenue
|
n.a.
|
1
|
% |
n.a.
|
Year Ended
|
||||||||||||
(Dollars
in thousands)
|
December
28,
2008
|
December
30,
2007
|
December
31,
2006
|
|||||||||
Impairment
of acquisition-related intangible assets
|
$
|
—
|
$
|
14,068
|
$
|
—
|
||||||
As
a percentage of revenue
|
n.a.
|
2
|
%
|
n.a.
|
Year Ended
|
||||||||||||
(Dollars
in thousands)
|
December
28,
2008
|
December
30,
2007
|
December
31,
2006
|
|||||||||
Interest
income
|
$
|
10,789
|
$
|
13,882
|
$
|
10,086
|
||||||
As
a percentage of revenue
|
1
|
%
|
2
|
%
|
4
|
%
|
||||||
Interest
expense
|
$
|
(4,387)
|
$
|
(5,071)
|
$
|
(1,809)
|
||||||
As
a percentage of revenue
|
(0)
|
%
|
(1)
|
%
|
(1)
|
%
|
||||||
Other,
net
|
$
|
(27,285)
|
$
|
(7,593)
|
$
|
1,077
|
||||||
As
a percentage of revenue
|
(2)
|
%
|
(1)
|
%
|
0
|
%
|
Year Ended
|
||||||||||||
(In
thousands)
|
December
28,
2008
|
December
30,
2007
|
December
31,
2006
|
|||||||||
Write-off
of unamortized debt issuance costs
|
$
|
(972
|
)
|
$
|
(8,260
|
)
|
$
|
—
|
||||
Amortization
of debt issuance costs
|
—
|
(1,710
|
)
|
—
|
||||||||
Impairment
of investments
|
(5,408
|
)
|
—
|
—
|
||||||||
Gain
(loss) on derivatives and foreign exchange, net of tax
|
(20,602
|
)
|
2,086
|
863
|
||||||||
Other
income (expense),
net
|
(303
|
)
|
291
|
214
|
||||||||
Total
other, net
|
$
|
(27,285
|
)
|
$
|
(7,593
|
)
|
$
|
1,077
|
Year Ended
|
||||||||||||
(Dollars
in thousands)
|
December
28,
2008
|
December
30,
2007
|
December
31,
2006
|
|||||||||
Income
tax provision (benefit)
|
$
|
69,368
|
$
|
(5,920)
|
$
|
1,945
|
||||||
As
a percentage of revenue
|
5
|
%
|
(1)
|
%
|
1
|
%
|
Year Ended
|
||||||||||||
(Dollars
in thousands)
|
December
28,
2008
|
December
30,
2007
|
December
31,
2006
|
|||||||||
Equity
in earnings of unconsolidated investees, net of taxes
|
$
|
14,077
|
$
|
(278)
|
$
|
—
|
||||||
As
a percentage of revenue
|
1
|
%
|
(0)
|
%
|
n.a.
|
Year Ended
|
||||||||||||
(Dollars
in thousands)
|
December
28,
2008
|
December
30,
2007
|
December
31,
2006
|
|||||||||
Net
cash provided by (used in) operating activities
|
$
|
153,647
|
$
|
2,372
|
$
|
(45,966
|
)
|
|||||
Net
cash used in investing activities
|
(325,790
|
)
|
(474,118
|
)
|
(133,330
|
)
|
||||||
Net
cash provided by financing activities
|
93,381
|
584,625
|
201,300
|
Payments Due by Period
|
||||||||||||||||||||
(In thousands)
|
Total
|
2009
|
2010 – 2011
|
2012 – 2013
|
Beyond
2013
|
|||||||||||||||
Customer
advances, including interest
|
$
|
111,440
|
$
|
19,800
|
$
|
27,640
|
$
|
16,000
|
$
|
48,000
|
||||||||||
Loan
from Malaysian Government
|
54,598
|
—
|
—
|
—
|
54,598
|
|||||||||||||||
Convertible
debt, including interest
|
499,965
|
4,170
|
8,340
|
8,340
|
479,115
|
|||||||||||||||
Lease
commitments
|
41,970
|
5,502
|
8,935
|
5,997
|
21,536
|
|||||||||||||||
Utility
obligations
|
750
|
—
|
—
|
—
|
750
|
|||||||||||||||
Royalty
obligations
|
585
|
585
|
—
|
—
|
—
|
|||||||||||||||
Non-cancelable
purchase orders
|
113,127
|
112,477
|
650
|
—
|
—
|
|||||||||||||||
Purchase
commitments under agreements
|
3,253,823
|
344,009
|
1,051,213
|
568,218
|
1,290,383
|
|||||||||||||||
Total
|
$
|
4,076,258
|
$
|
486,543
|
$
|
1,096,778
|
$
|
598,555
|
$
|
1,894,382
|
Page
|
||||
55
|
|
|||
FINANCIAL
STATEMENTS
|
||||
56
|
|
|||
57
|
|
|||
58
|
|
|||
59
|
|
|||
60
|
|
|||
61
|
|
|||
109
|
|
|
/s/ PricewaterhouseCoopers
LLP
|
December
28,
2008
|
December 30,
2007
|
|||||||
Assets
|
||||||||
Current
assets:
|
||||||||
Cash
and cash equivalents
|
$
|
202,331
|
$
|
285,214
|
||||
Restricted
cash, current portion
|
13,240
|
—
|
||||||
Short-term
investments
|
17,179
|
105,453
|
||||||
Accounts
receivable, net
|
194,222
|
138,250
|
||||||
Costs
and estimated earnings in excess of billings
|
30,326
|
39,136
|
||||||
Inventories
|
251,388
|
148,820
|
||||||
Advances
to suppliers, current portion
|
43,190
|
52,277
|
||||||
Prepaid
expenses and other current assets
|
96,104
|
33,110
|
||||||
Total
current assets
|
847,980
|
802,260
|
||||||
Restricted
cash, net of current portion
|
162,037
|
67,887
|
||||||
Long-term
investments
|
23,577
|
29,050
|
||||||
Property,
plant and equipment, net
|
612,687
|
377,994
|
||||||
Goodwill
|
196,720
|
184,684
|
||||||
Intangible
assets, net
|
39,490
|
50,946
|
||||||
Advances
to suppliers, net of current portion
|
119,420
|
108,943
|
||||||
Other
long-term assets
|
74,224
|
31,974
|
||||||
Total
assets
|
$
|
2,076,135
|
$
|
1,653,738
|
||||
Liabilities
and Stockholders’ Equity
|
||||||||
Current
liabilities:
|
||||||||
Accounts
payable
|
$
|
263,241
|
$
|
124,723
|
||||
Accrued
liabilities
|
157,049
|
79,434
|
||||||
Billings
in excess of costs and estimated earnings
|
11,806
|
69,900
|
||||||
Customer
advances, current portion
|
19,035
|
9,250
|
||||||
Convertible
debt, current portion
|
—
|
425,000
|
||||||
Total
current liabilities
|
451,131
|
708,307
|
||||||
Long-term
debt
|
54,598
|
—
|
||||||
Convertible
debt, net of current portion
|
423,608
|
—
|
||||||
Deferred
tax liability, net of current portion
|
8,115
|
6,213
|
||||||
Customer
advances, net of current portion
|
91,359
|
60,153
|
||||||
Other
long-term
liabilities
|
25,950
|
14,975
|
||||||
Total
liabilities
|
1,054,761
|
789,648
|
||||||
Commitments
and Contingencies (Note 9)
|
||||||||
Stockholders’
Equity:
|
||||||||
Preferred
stock, $0.001 par value, 10,042,490 shares authorized; none issued and
outstanding
|
—
|
—
|
||||||
Common
stock, $0.001 par value, 217,500,000 shares of class A common stock
authorized; $0.001 par value, 150,000,000 shares and 157,500,000 shares of
class B common stock authorized; 44,055,644 and 40,289,719 shares of class
A common stock issued; 43,849,566 and 40,176,957 shares of class A common
stock outstanding; 42,033,287 and 44,533,287 shares of class B common
stock issued and outstanding, at December 28, 2008 and December 30,
2007, respectively
|
86
|
85
|
||||||
Additional
paid-in capital
|
1,003,954
|
883,033
|
||||||
Accumulated
other comprehensive income (loss)
|
(25,611)
|
5,762
|
||||||
Retained
earnings (deficit)
|
51,602
|
(22,815
|
)
|
|||||
1,030,031
|
866,065
|
|||||||
Less:
shares of class A common stock held in treasury, at cost; 206,078 and
112,762 shares at December 28, 2008 and December 30, 2007,
respectively
|
(8,657
|
)
|
(1,975
|
)
|
||||
Total
stockholders’ equity
|
1,021,374
|
864,090
|
||||||
Total
liabilities and stockholders’ equity
|
$
|
2,076,135
|
$
|
1,653,738
|
Year
Ended
|
||||||||||||
December
28,
2008
|
December
30,
2007
|
December
31,
2006
|
||||||||||
Revenue:
|
||||||||||||
Systems
|
$
|
820,632
|
$
|
464,178
|
$
|
—
|
||||||
Components
|
614,287
|
310,612
|
236,510
|
|||||||||
Total
revenue
|
1,434,919
|
774,790
|
236,510
|
|||||||||
Costs
and expenses:
|
||||||||||||
Cost
of systems revenue
|
653,569
|
386,511
|
—
|
|||||||||
Cost
of components revenue
|
417,669
|
240,475
|
186,042
|
|||||||||
Research
and development
|
21,474
|
13,563
|
9,684
|
|||||||||
Sales,
general and administrative
|
173,740
|
108,256
|
21,677
|
|||||||||
Purchased
in-process research and development
|
—
|
9,575
|
—
|
|||||||||
Impairment
of acquisition-related intangible assets
|
—
|
14,068
|
—
|
|||||||||
Total
costs and expenses
|
1,266,452
|
772,448
|
217,403
|
|||||||||
Operating
income
|
168,467
|
2,342
|
19,107
|
|||||||||
Other
income (expense):
|
||||||||||||
Interest
income
|
10,789
|
13,882
|
10,086
|
|||||||||
Interest
expense
|
(4,387)
|
(5,071
|
)
|
(1,809
|
)
|
|||||||
Other,
net
|
(27,285)
|
(7,593
|
)
|
1,077
|
||||||||
Other
income (expense), net
|
(20,883)
|
1,218
|
9,354
|
|||||||||
Income
before income taxes and equity in earnings of unconsolidated
investees
|
147,584
|
3,560
|
28,461
|
|||||||||
Income
tax provision (benefit)
|
69,368
|
(5,920
|
)
|
1,945
|
||||||||
Income
before equity in earnings of unconsolidated investees
|
78,216
|
9,480
|
26,516
|
|||||||||
Equity
in earnings of unconsolidated investees, net of taxes
|
14,077
|
(278
|
)
|
—
|
||||||||
Net
income
|
$
|
92,293
|
$
|
9,202
|
$
|
26,516
|
||||||
Net
income per share of class A and class B common stock:
|
||||||||||||
Basic
|
$
|
1.15
|
$
|
0.12
|
$
|
0.40
|
||||||
Diluted
|
$
|
1.09
|
$
|
0.11
|
$
|
0.37
|
||||||
Weighted-average
shares:
|
||||||||||||
Basic
|
80,522
|
75,413
|
65,864
|
|||||||||
Diluted
|
84,446
|
81,227
|
71,087
|
Class
A and Class B Common Stock
|
||||||||||||||||||||||||||||
Shares
|
Value
|
Additional
Paid-in
Capital
|
Treasury
Stock
|
Accumulated
Other
Comprehensive
Income
(Loss)
|
Retained
Earnings
(Deficit)
|
Total
Stockholders’
Equity
|
||||||||||||||||||||||
Balances
at January 1, 2006
|
61,092
|
$
|
61
|
$
|
316,617
|
$
|
—
|
$
|
505
|
$
|
(58,533
|
)
|
$
|
258,650
|
||||||||||||||
Issuance
of common stock upon exercise of options
|
1,529
|
2
|
3,867
|
—
|
—
|
—
|
3,869
|
|||||||||||||||||||||
Issuance
of restricted stock to employees, net of cancellations
|
228
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||||||
Issuance
of common stock in relation to follow-on offering, net of offering
expenses
|
7,000
|
7
|
197,424
|
—
|
—
|
—
|
197,431
|
|||||||||||||||||||||
Stock-based
compensation expense
|
—
|
—
|
4,911
|
—
|
—
|
—
|
4,911
|
|||||||||||||||||||||
Net
unrealized loss on derivatives and investments, net of tax
|
—
|
—
|
—
|
—
|
(2,606
|
)
|
—
|
(2,606
|
)
|
|||||||||||||||||||
Net
income
|
—
|
—
|
—
|
—
|
—
|
26,516
|
26,516
|
|||||||||||||||||||||
Balances
at December 31, 2006
|
69,849
|
70
|
522,819
|
—
|
(2,101
|
)
|
(32,017
|
)
|
488,771
|
|||||||||||||||||||
Issuance
of common stock upon exercise of options
|
2,817
|
3
|
8,718
|
—
|
—
|
—
|
8,721
|
|||||||||||||||||||||
Issuance
of restricted stock to employees, net of cancellations
|
608
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||||||
Issuance
of common stock in relation to follow-on offering, net of offering
expenses
|
2,695
|
3
|
167,376
|
—
|
—
|
—
|
167,379
|
|||||||||||||||||||||
Issuance
of common stock in relation to share lending arrangements
|
4,747
|
5
|
—
|
—
|
—
|
—
|
5
|
|||||||||||||||||||||
Issuance
of common stock for purchase acquisition
|
4,107
|
4
|
111,262
|
—
|
—
|
—
|
111,266
|
|||||||||||||||||||||
Stock
options assumed in relation to acquisition
|
—
|
—
|
21,280
|
—
|
—
|
—
|
21,280
|
|||||||||||||||||||||
Stock-based
compensation expense
|
—
|
—
|
51,578
|
—
|
—
|
—
|
51,578
|
|||||||||||||||||||||
Purchases
of treasury stock
|
(113
|
)
|
—
|
—
|
(1,975
|
)
|
—
|
—
|
(1,975
|
)
|
||||||||||||||||||
Cumulative
translation adjustment, net of tax
|
—
|
—
|
—
|
—
|
9,746
|
—
|
9,746
|
|||||||||||||||||||||
Net
unrealized loss on derivatives and investments, net of tax
|
—
|
—
|
—
|
—
|
(1,883
|
)
|
—
|
(1,883
|
)
|
|||||||||||||||||||
Net
income
|
—
|
—
|
—
|
—
|
—
|
9,202
|
9,202
|
|||||||||||||||||||||
Balances
at December 30, 2007
|
84,710
|
85
|
883,033
|
(1,975
|
)
|
5,762
|
(22,815
|
)
|
864,090
|
|||||||||||||||||||
Issuance
of common stock upon exercise of options
|
1,129
|
1
|
5,127
|
—
|
—
|
—
|
5,128
|
|||||||||||||||||||||
Issuance
of restricted stock to employees, net of cancellations
|
96
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||||||
Issuance
of common stock for purchase acquisition
|
40
|
—
|
3,054
|
—
|
—
|
—
|
3,054
|
|||||||||||||||||||||
Issuance
of common stock for conversion of convertible debt
|
1
|
—
|
40
|
—
|
—
|
—
|
40
|
|||||||||||||||||||||
Excess
tax benefits from stock-based award activity
|
—
|
—
|
41,524
|
—
|
—
|
—
|
41,524
|
|||||||||||||||||||||
Stock-based
compensation expense
|
—
|
—
|
71,176
|
—
|
—
|
—
|
71,176
|
|||||||||||||||||||||
Distribution
to Cypress under tax sharing agreement
|
—
|
—
|
—
|
—
|
—
|
(17,876
|
)
|
(17,876
|
)
|
|||||||||||||||||||
Purchases
of treasury stock
|
(93
|
)
|
—
|
—
|
(6,682
|
)
|
—
|
—
|
(6,682
|
)
|
||||||||||||||||||
Cumulative
translation adjustment, net of tax
|
—
|
—
|
—
|
—
|
(9,264
|
)
|
—
|
(9,264
|
)
|
|||||||||||||||||||
Net
unrealized loss on derivatives and investments, net of tax
|
—
|
—
|
—
|
—
|
(22,109
|
)
|
—
|
(22,109
|
)
|
|||||||||||||||||||
Net
income
|
—
|
—
|
—
|
—
|
—
|
92,293
|
92,293
|
|||||||||||||||||||||
Balances
at December 28, 2008
|
85,883
|
$
|
86
|
$
|
1,003,954
|
$
|
(8,657
|
)
|
$
|
(25,611
|
)
|
$
|
51,602
|
$
|
1,021,374
|
Year Ended
|
||||||||||||
December 28,
2008
|
December 30,
2007
|
December
31,
2006
|
||||||||||
Net
income
|
$
|
92,293
|
$
|
9,202
|
$
|
26,516
|
||||||
Other
comprehensive income:
|
||||||||||||
Cumulative
translation adjustment, net of tax
|
(9,264
|
)
|
9,746
|
—
|
||||||||
Unrealized
loss on derivatives, net of tax
|
(22,145
|
)
|
(1,843
|
)
|
(2,602
|
)
|
||||||
Unrealized
gain (loss) on investments, net of tax
|
36
|
(40
|
)
|
(4
|
)
|
|||||||
Total
comprehensive income
|
$
|
60,920
|
$
|
17,065
|
$
|
23,910
|
Year Ended
|
||||||||||||
December
28,
2008
|
December
30,
2007
|
December
31,
2006
|
||||||||||
Cash
flows from operating activities:
|
||||||||||||
Net
income
|
$
|
92,293
|
$
|
9,202
|
$
|
26,516
|
||||||
Adjustments to
reconcile net income to net cash provided by (used in) operating
activities:
|
||||||||||||
Stock-based
compensation
|
70,220
|
51,212
|
4,864
|
|||||||||
Depreciation
|
53,743
|
27,315
|
16,347
|
|||||||||
Amortization of
intangible assets
|
16,762
|
28,540
|
4,690
|
|||||||||
Impairment of
long-lived assets
|
2,203
|
14,068
|
—
|
|||||||||
Purchased
in-process research and development
|
—
|
9,575
|
—
|
|||||||||
Impairment of
investments
|
5,408
|
—
|
—
|
|||||||||
Amortization of
debt issuance costs
|
972
|
9,970
|
—
|
|||||||||
Equity in earnings
of unconsolidated investees
|
(14,077)
|
278
|
—
|
|||||||||
Excess tax benefits
from stock-based award activity
|
(41,524)
|
—
|
—
|
|||||||||
Deferred income
taxes and other tax liabilities
|
46,116
|
(9,424
|
)
|
(290
|
)
|
|||||||
Changes in operating
assets and liabilities, net of effect of acquisitions:
|
||||||||||||
Accounts
receivable
|
(57,575
|
)
|
(42,749
|
)
|
(26,182
|
)
|
||||||
Costs
and estimated earnings in excess of billings
|
8,680
|
(32,634
|
)
|
—
|
||||||||
Inventories
|
(98,999
|
)
|
(69,229
|
)
|
(9,586
|
)
|
||||||
Prepaid
expenses and other assets
|
(61,790
|
)
|
(11,794
|
)
|
(3,697
|
)
|
||||||
Advances to
suppliers
|
1,297
|
(83,584
|
)
|
(77,358
|
)
|
|||||||
Accounts
payable and other accrued liabilities
|
147,216
|
42,291
|
16,139
|
|||||||||
Billings in
excess of costs and estimated earnings
|
(57,423
|
)
|
29,923
|
—
|
||||||||
Customer
advances
|
40,125
|
29,412
|
2,591
|
|||||||||
Net
cash provided by (used in) operating activities
|
153,647
|
2,372
|
(45,966
|
)
|
||||||||
Cash
flows from investing activities:
|
||||||||||||
Increase
in restricted cash
|
(107,390
|
)
|
(63,176
|
)
|
—
|
|||||||
Purchase
of property, plant and equipment
|
(265,549
|
)
|
(193,394
|
)
|
(100,201
|
)
|
||||||
Purchase
of available-for-sale securities
|
(65,748
|
)
|
(209,607
|
)
|
(33,996
|
)
|
||||||
Proceeds
from sales or maturities of available-for-sale securities
|
155,833
|
91,600
|
17,500
|
|||||||||
Cash
paid for acquisitions, net of cash acquired
|
(18,311
|
)
|
(98,645
|
)
|
—
|
|||||||
Cash
paid for investments in joint ventures and other non-public
companies
|
(24,625
|
)
|
(896
|
)
|
(16,633
|
)
|
||||||
Net
cash used in investing activities
|
(325,790
|
)
|
(474,118
|
)
|
(133,330
|
)
|
||||||
Cash
flows from financing activities:
|
||||||||||||
Proceeds
from issuance of long-term debt
|
54,598
|
—
|
—
|
|||||||||
Proceeds
from issuance of convertible debt, net of issuance costs
|
—
|
414,058
|
—
|
|||||||||
Cash
paid for conversion of convertible debt
|
(1,187
|
)
|
—
|
—
|
||||||||
Proceeds
from issuance of common stock under share lending
arrangements
|
—
|
5
|
—
|
|||||||||
Proceeds
from follow-on offering of common stock, net of offering
expenses
|
—
|
167,379
|
197,431
|
|||||||||
Proceeds
from exercise of stock options
|
5,128
|
8,721
|
3,869
|
|||||||||
Excess
tax benefits from stock-based award activity
|
41,524
|
—
|
—
|
|||||||||
Purchases
of stock for tax withholding obligations on vested restricted
stock
|
(6,682
|
)
|
(1,975
|
)
|
—
|
|||||||
Principal
payments on line of credit and notes payable
|
—
|
(3,563
|
)
|
—
|
||||||||
Net
cash provided by financing activities
|
93,381
|
584,625
|
201,300
|
|||||||||
Effect
of exchange rate changes on cash and cash equivalents
|
(4,121
|
)
|
6,739
|
—
|
||||||||
Net
increase (decrease) in cash and cash equivalents
|
(82,883
|
)
|
119,618
|
22,004
|
||||||||
Cash
and cash equivalents at beginning of period
|
285,214
|
165,596
|
143,592
|
|||||||||
Cash
and cash equivalents at end of period
|
$
|
202,331
|
$
|
285,214
|
$
|
165,596
|
||||||
Non-cash
transactions:
|
||||||||||||
Issuance of common
stock for purchase acquisition
|
$
|
3,054
|
$
|
111,266
|
$
|
—
|
||||||
Issuance of common
stock for conversion of convertible debt
|
40
|
—
|
—
|
|||||||||
Stock options
assumed in relation to acquisition
|
—
|
21,280
|
—
|
|||||||||
Additions
to property, plant and equipment acquired under accounts payable and other
accrued liabilities
|
28,485
|
8,436
|
8,015
|
|||||||||
Change in goodwill
relating to adjustments to acquired net assets
|
1,176
|
6,639
|
—
|
|||||||||
Supplemental
cash flow information:
|
||||||||||||
Cash paid for
interest, net of amount capitalized
|
4,220
|
3,497
|
1,690
|
|||||||||
Cash paid for
income taxes
|
13,431
|
887
|
—
|
Useful Lives
in
Years
|
||||
Building
|
15
|
|||
Manufacturing
equipment
|
2 to 7
|
|||
Computer
equipment
|
2
to 7
|
|||
Furniture
and fixtures
|
3
to 5
|
|||
Leasehold
improvements
|
5 to 15
|
(In thousands)
|
Shares
|
Fair Value at
January 10, 2007
|
|||
Purchase
consideration:
|
|||||
Cash
|
—
|
$
|
120,694
|
||
Common
stock
|
2,961
|
111,266
|
|||
Stock
options assumed that are fully vested
|
618
|
21,280
|
|||
Direct
transaction costs
|
—
|
2,958
|
|||
Total
purchase consideration
|
3,579
|
256,198
|
|||
Future
stock compensation:
|
|||||
Shares
subject to re-vesting restrictions
|
1,146
|
43,046
|
|||
Stock
options assumed that are unvested
|
984
|
35,126
|
|||
Total
future stock compensation
|
2,130
|
78,172
|
|||
Total
purchase consideration and future stock compensation
|
5,709
|
$
|
334,370
|
(In thousands)
|
Amount
|
|||
Net
tangible assets
|
$
|
13,925
|
||
Patents
and purchased technology
|
29,448
|
|||
Tradenames
|
15,535
|
|||
Backlog
|
11,787
|
|||
Customer
relationships
|
22,730
|
|||
In-process
research and development
|
9,575
|
|||
Unearned
stock compensation
|
78,172
|
|||
Deferred
tax liability
|
(21,964
|
)
|
||
Goodwill
|
175,162
|
|||
Total
purchase consideration and future stock compensation
|
$
|
334,370
|
(In thousands)
|
Amount
|
|||
Cash
and cash equivalents
|
$
|
22,049
|
||
Restricted
cash
|
4,711
|
|||
Accounts
receivable, net
|
40,080
|
|||
Costs
and estimated earnings in excess of billings
|
9,136
|
|||
Inventories
|
28,146
|
|||
Deferred
project costs
|
24,932
|
|||
Prepaid
expenses and other assets
|
23,740
|
|||
Total
assets acquired
|
152,794
|
|||
Accounts
payable
|
(60,707
|
)
|
||
Billings
in excess of costs and estimated earnings
|
(35,887
|
)
|
||
Other
accrued expenses and liabilities
|
(42,275
|
)
|
||
Total
liabilities assumed
|
(138,869
|
)
|
||
Net
assets acquired
|
$
|
13,925
|
Intangible
Assets
|
Method
of Valuation
|
Discount
Rate
Used
|
Royalty
Rate
Used
|
Estimated
Useful Life
|
Patents
and purchased technology
|
Relief
from royalty method
|
25%
|
3%
|
4 years
|
Tradenames
|
Relief
from royalty method
|
25%
|
1%
|
5
years
|
Backlog
|
Income
approach
|
20%
|
—%
|
1
year
|
Customer
relationships
|
Income
approach
|
22%
|
—%
|
6
years
|
(In
thousands)
|
December
28,
2008
|
December 30,
2007
|
||||||
Cost
of systems revenue
|
$
|
7,691
|
$
|
20,085
|
||||
Sales,
general and administrative
|
3,787
|
3,688
|
||||||
Total
amortization expense
|
$
|
11,478
|
$
|
23,773
|
Stage
of
Completion
|
Total Cost
Incurred to Date
|
Total
Remaining Costs
|
|||||||||||||||
Design Automation Tool
|
|||||||||||||||||
As
of January 10, 2007 (acquisition date)
|
8
|
%
|
$
|
0.2 million
|
$
|
2.4 million
|
|||||||||||
As
of December 28, 2008
|
100
|
%
|
$
|
1.4 million
|
$
|
—
|
|||||||||||
Tracking System and Other
|
|||||||||||||||||
As
of January 10, 2007 (acquisition date)
|
25
|
%
|
$
|
0.2 million
|
$
|
0.6 million
|
|||||||||||
As
of December 28, 2008
|
100
|
%
|
$
|
0.8
million
|
$
|
—
|
Year Ended
|
||||||||
(In thousands, except per share amounts)
|
December 30,
2007
|
December 31,
2006
|
||||||
Revenue
|
$
|
777,104
|
$
|
442,115
|
||||
Net
income (loss)
|
$
|
7,094
|
$
|
(57,635
|
)
|
|||
Basic
net income (loss) per share
|
$
|
0.09
|
$
|
(0.84
|
)
|
|||
Diluted
net income (loss) per share
|
$
|
0.09
|
$
|
(0.84
|
)
|
(In
thousands)
|
Components
Business
Segment
|
Systems
Business
Segment
|
Total
|
|||||||||
As
of December 31, 2006
|
$
|
2,883
|
$
|
—
|
$
|
2,883
|
||||||
Goodwill
acquired
|
—
|
175,162
|
175,162
|
|||||||||
Adjustments
|
—
|
6,639
|
6,639
|
|||||||||
As
of December 30, 2007
|
2,883
|
181,801
|
184,684
|
|||||||||
Goodwill
acquired
|
11,688
|
—
|
11,688
|
|||||||||
Adjustments
|
1,176
|
—
|
1,176
|
|||||||||
Cumulative
translation adjustment, net of tax
|
(828
|
)
|
—
|
(828
|
)
|
|||||||
As
of December 28, 2008
|
$
|
14,919
|
$
|
181,801
|
$
|
196,720
|
(In
thousands)
|
Gross
|
Accumulated
Amortization
|
Net
|
|||||||||
As
of December 28, 2008
|
||||||||||||
Patents
and purchased technology
|
$
|
51,398
|
$
|
(31,322
|
)
|
$
|
20,076
|
|||||
Tradenames
|
2,501
|
(1,685
|
)
|
816
|
||||||||
Backlog
|
11,787
|
(11,787
|
)
|
—
|
||||||||
Customer
relationships and other
|
27,456
|
(8,858
|
)
|
18,598
|
||||||||
$
|
93,142
|
$
|
(53,652
|
)
|
$
|
39,490
|
||||||
As
of December 30, 2007
|
||||||||||||
Patents
and purchased technology
|
$
|
51,398
|
$
|
(20,630
|
)
|
$
|
30,768
|
|||||
Tradenames
|
1,603
|
(808
|
)
|
795
|
||||||||
Backlog
|
11,787
|
(11,460
|
)
|
327
|
||||||||
Customer
relationships and other
|
23,193
|
(4,137
|
)
|
19,056
|
||||||||
$
|
87,981
|
$
|
(37,035
|
)
|
$
|
50,946
|
2009
|
$
|
16,262
|
||
2010
|
14,675
|
|||
2011
|
4,546
|
|||
2012
|
3,902
|
|||
Thereafter
|
105
|
|||
$
|
39,490
|
(In
thousands)
|
December
28,
2008
|
December 30,
2007
|
||||||
Accounts
receivable, net:
|
||||||||
Accounts
receivable, gross
|
$
|
196,316
|
$
|
139,991
|
||||
Less:
Allowance for doubtful accounts
|
(1,863
|
)
|
(1,373
|
)
|
||||
Less:
Allowance for sales returns
|
(231
|
)
|
(368
|
)
|
||||
$
|
194,222
|
$
|
138,250
|
|||||
Costs
and estimated earnings in excess of billings on contracts in progress and
billings in excess of costs and estimated earnings on contracts in
progress consists of the following:
|
||||||||
Costs
and estimated earnings in excess of billings on contracts in
progress
|
$
|
30,326
|
$
|
39,136
|
||||
Billings
in excess of costs and estimated earnings on contracts in
progress
|
(11,806
|
)
|
(69,900
|
)
|
||||
$
|
18,520
|
$
|
(30,764
|
)
|
||||
Contracts
in progress at year end:
|
||||||||
Costs
incurred to date
|
$
|
552,211
|
$
|
481,340
|
||||
Estimated
earnings to date
|
166,901
|
145,643
|
||||||
Contract
revenue earned to date
|
719,112
|
626,983
|
||||||
Less:
Billings to date, including earned incentive rebates
|
(700,592
|
)
|
(657,747
|
)
|
||||
$
|
(18,520
|
) |
$
|
(30,764
|
)
|
(In
thousands)
|
December
28,
2008
|
December 30,
2007
|
||||||
Inventories:
|
||||||||
Raw
materials(1)
|
$
|
130,082
|
$
|
89,604
|
||||
Work-in-process
|
15,505
|
2,027
|
||||||
Finished
goods
|
105,801
|
57,189
|
||||||
$
|
251,388
|
$
|
148,820
|
|||||
(1) In
addition to polysilicon and other raw materials for solar cell
manufacturing, raw materials include solar panels purchased from
third-party vendors and installation materials for systems
projects.
|
||||||||
Prepaid
expenses and other current assets:
|
||||||||
VAT
receivables, current portion
|
$
|
26,489
|
$
|
7,266
|
||||
Deferred
tax assets, current portion
|
5,658
|
8,437
|
||||||
Foreign
currency forward exchange contracts
|
11,443
|
—
|
||||||
Other
receivables(2)
|
36,749
|
9,946
|
||||||
Other
prepaid expenses
|
15,765
|
7,461
|
||||||
$
|
96,104
|
$
|
33,110
|
|||||
(2) Includes
tolling agreements with suppliers in which the Company provides
polysilicon required for silicon ingot manufacturing and procures the
manufactured silicon ingots from the supplier (see Note
9).
|
||||||||
Property,
plant and equipment, net:
|
||||||||
Land
and buildings
|
$
|
13,912
|
$
|
7,482
|
||||
Manufacturing
equipment(3)
|
374,948
|
194,963
|
||||||
Computer
equipment
|
26,957
|
12,399
|
||||||
Furniture
and fixtures
|
4,327
|
2,648
|
||||||
Leasehold
improvements
|
146,101
|
113,801
|
||||||
Construction-in-process(4)
|
146,890
|
99,945
|
||||||
713,135
|
431,238
|
|||||||
Less:
Accumulated depreciation(3, 5)
|
(100,448
|
) |
(53,244
|
)
|
||||
$
|
612,687
|
$
|
377,994
|
|||||
(3)
Certain manufacturing equipment associated with solar cell manufacturing
lines located at our second facility in the Philippines are collateralized
in favor of a customer by way of a chattel mortgage, a first ranking
mortgage and a security interest in the property. The Company provided
security for advance payments received from a customer in fiscal 2008
totaling $40.0 million in the form of collateralized manufacturing
equipment with a net book value of $43.1 million as of December 28, 2008
(see Note 8).
|
||||||||
(4)
Balance primarily relates to the manufacturing facilities in the
Philippines. Balance includes capitalized interest of $1.4 million as of
December 28, 2008.
|
||||||||
(5)
Total depreciation expense was $53.7 million, $27.3 million and $16.3
million in fiscal 2008, 2007 and 2006, respectively.
|
||||||||
Other
long-term assets:
|
||||||||
VAT
receivable, net of current portion
|
$
|
6,692
|
$
|
24,269
|
||||
Investments
in joint ventures
|
29,007
|
5,304
|
||||||
Note
receivable(6)
|
10,000
|
—
|
||||||
Other
|
28,525
|
2,401
|
||||||
$
|
74,224
|
$
|
31,974
|
|||||
(6) In
June 2008, the Company loaned $10.0 million to a third-party private
company pursuant to a three-year interest-bearing note receivable that is
convertible into equity at the Company’s option.
|
||||||||
Accrued
liabilities:
|
||||||||
VAT
payables
|
$
|
18,934
|
$
|
18,138
|
||||
Income
taxes payable
|
13,402
|
11,106
|
||||||
Deferred
tax liability
|
5,658
|
—
|
||||||
Foreign
currency forward exchange contracts
|
45,791
|
8,920
|
||||||
Warranty
reserves
|
23,872
|
10,502
|
||||||
Employee
compensation and employee benefits
|
19,018
|
15,338
|
||||||
Deferred
revenue
|
5,159
|
307
|
||||||
Other
|
25,215
|
15,123
|
||||||
$
|
157,049
|
$
|
79,434
|
(In thousands)
|
Quoted
Prices in Active
Markets
for Identical
Instruments
(Level
1)
|
Significant
Other
Observable
Inputs
(Level
2)
|
Significant
Unobservable
Inputs
(Level
3)
|
Balance
as of
December
28, 2008
|
||||||||||||
Asset
|
||||||||||||||||
Money
market funds
|
$
|
227,190
|
$
|
—
|
$
|
7,185
|
$
|
234,375
|
||||||||
Bank
notes
|
49,610
|
—
|
—
|
49,610
|
||||||||||||
Corporate
securities
|
—
|
9,994
|
23,577
|
33,571
|
||||||||||||
Total
available-for-sale securities
|
$
|
276,800
|
$
|
9,994
|
$
|
30,762
|
$
|
317,556
|
•
|
5
years to liquidity;
|
•
|
continued
receipt of contractual interest which provides a premium spread for failed
auctions; and
|
•
|
discount
rates ranging from 4.5% to 6.0%, which incorporates a spread for both
credit and liquidity risk.
|
(In thousands)
|
Money
Market
Funds
|
Auction
Rate Securities
|
||||||
Balance
at December 31, 2007
|
$
|
—
|
$
|
—
|
||||
Transfers
from Level 1 to Level 3
|
26,677
|
—
|
||||||
Transfers
from Level 2 to Level 3
|
—
|
29,050
|
||||||
Purchases
|
—
|
10,000
|
||||||
Sales
(1)
|
(18,498
|
)
|
(13,000
|
)
|
||||
Impairment
loss recorded in “Other, net”
|
(994
|
)
|
(2,473
|
)
|
||||
Balance
at December 28, 2008 (2)
|
$
|
7,185
|
$
|
23,577
|
(1)
|
In
the second quarter of fiscal 2008, the Company sold auction rate
securities with a carrying value of $12.5 million for their stated par
value of $13.0 million to the issuer of the securities outside
of the auction process. In the fourth quarter of fiscal 2008, the Company
received a distribution of $18.5 million from the Reserve
Funds.
|
(2)
|
On
February 4, 2009, the Company sold an auction rate security with a
carrying value of $4.5 million on December 28, 2008 for $4.6 million
to a third-party outside of the auction process. In addition, the
Company received a distribution of $2.1 million and $1.6 million from the
Reserve Funds on January 30, 2009 and February 20, 2009,
respectively.
|
December 28, 2008
|
December 30, 2007
|
|||||||||||||||||||||||||||||||
Unrealized
|
Unrealized
|
|||||||||||||||||||||||||||||||
(In thousands)
|
Cost
|
Gross
Gains
|
Gross
Losses
|
Fair
Value
|
Cost
|
Gross
Gains
|
Gross
Losses
|
Fair
Value
|
||||||||||||||||||||||||
Money
market funds
|
$
|
234,375
|
$
|
—
|
$
|
—
|
$
|
234,375
|
$
|
281,458
|
$
|
—
|
$
|
—
|
$
|
281,458
|
||||||||||||||||
Bank
notes
|
49,610
|
—
|
—
|
49,610
|
—
|
—
|
—
|
—
|
||||||||||||||||||||||||
Corporate
securities
|
33,579
|
2
|
(10
|
)
|
33,571
|
92,395
|
6
|
(50
|
)
|
92,351
|
||||||||||||||||||||||
Commercial
paper
|
—
|
—
|
—
|
—
|
78,163
|
2
|
(2
|
)
|
78,163
|
|||||||||||||||||||||||
Total
available-for-sale securities
|
$
|
317,564
|
$
|
2
|
$
|
(10
|
)
|
$
|
317,556
|
$
|
452,016
|
$
|
8
|
$
|
(52
|
)
|
$
|
451,972
|
As
of December 28, 2008
|
||||||||||||||||||||||||
Less
than 12 Months
|
12
Months or Greater
|
Total
|
||||||||||||||||||||||
(In thousands)
|
Fair
Value
|
Gross
Unrealized Losses
|
Fair
Value
|
Gross Unrealized
Losses
|
Fair
Value
|
Gross
Unrealized Losses
|
||||||||||||||||||
Corporate
securities
|
$
|
4,992
|
$
|
(10
|
)
|
$
|
—
|
$
|
—
|
$
|
4,992
|
$
|
(10
|
)
|
(In thousands)
|
December
28,
2008
|
December 30,
2007
|
||||||
Included
in:
|
||||||||
Cash
equivalents
|
$
|
101,523
|
$
|
249,582
|
||||
Short-term
restricted cash(1, 2)
|
13,240
|
—
|
||||||
Short-term
investments
|
17,179
|
105,453
|
||||||
Long-term
restricted cash(1)
|
162,037
|
67,887
|
||||||
Long-term
investments
|
23,577
|
29,050
|
||||||
$
|
317,556
|
$
|
451,972
|
|||||
Contractual
maturities:
|
||||||||
Due
in less than one year
|
$
|
186,540
|
$
|
396,228
|
||||
Due
from one to two years (3)
|
3,206
|
4,994
|
||||||
Due
from two to 30 years
|
127,810
|
50,750
|
||||||
$
|
317,556
|
$
|
451,972
|
(1)
|
The
Company provided security in the form of cash collateralized bank standby
letters of credit for advance payments received from
customers.
|
(2)
|
The
Company received proceeds of Malaysian Ringgit 190.0 million
(approximately $54.6 million) from the Malaysian Government under its
facility agreement to finance the construction of its planned third solar
cell manufacturing facility in
Malaysia.
|
(3)
|
The
Company classifies all available-for-sale securities that are intended to
be available for use in current operations as short term
investments.
|
2009
|
$
|
83,556
|
||
2010
|
59,642
|
|||
2011
|
19,792
|
|||
$
|
162,990
|
2009
|
$
|
19,800
|
||
2010
|
19,317
|
|||
2011
|
8,323
|
|||
2012
|
8,000
|
|||
2013
|
8,000
|
|||
Thereafter
|
48,000
|
|||
$
|
111,440
|
2009
|
$
|
5,502
|
||
2010
|
5,078
|
|||
2011
|
3,857
|
|||
2012
|
3,032
|
|||
2013
|
2,965
|
|||
Thereafter
|
21,536
|
|||
$
|
41,970
|
2009
|
$
|
456,486
|
||
2010
|
521,329
|
|||
2011
|
530,534
|
|||
2012
|
334,621
|
|||
2013
|
233,597
|
|||
Thereafter
|
1,290,383
|
|||
$
|
3,366,950
|
(In
thousands)
|
December 28,
2008
|
December 30,
2007
|
December 31,
2006
|
|||||||||
Balance
at the beginning of the period
|
$
|
17,194
|
$
|
3,446
|
$
|
574
|
||||||
PowerLight accrued
balance at date of acquisition
|
—
|
6,542
|
—
|
|||||||||
Accruals for
warranties issued during the period
|
14,207
|
10,771
|
3,226
|
|||||||||
Settlements made
during the period
|
(3,339
|
)
|
(3,565
|
)
|
(354
|
)
|
||||||
Balance
at the end of the period
|
$
|
28,062
|
$
|
17,194
|
$
|
3,446
|
Balance
Sheet
|
||||
Assets
|
||||
Current
assets
|
$
|
47,338
|
||
Noncurrent
assets
|
106,671
|
|||
Total
Assets
|
$
|
154,009
|
||
Liabilities
|
||||
Current
liabilities
|
$
|
31,067
|
||
Noncurrent
liabilities
|
61,527
|
|||
Total
Liabilities
|
$
|
92,594
|
||
Statement
of Operations
|
||||
Revenues
|
$
|
60,624
|
||
Cost
of Sales
|
23,568
|
|||
Gross
profit
|
37,056
|
|||
Operating
income
|
32,887
|
|||
Net
income
|
$
|
44,919
|
As
of
|
||||||||||||||||
December
28, 2008
|
December
30, 2007
|
|||||||||||||||
(In
thousands)
|
Carrying
Value
|
Fair
Value*
|
Carrying
Value
|
Fair
Value*
|
||||||||||||
1.25%
debentures
|
$
|
198,608
|
$
|
143,991
|
$
|
200,000
|
$
|
465,576
|
||||||||
0.75%
debentures
|
225,000
|
166,747
|
225,000
|
366,316
|
||||||||||||
Total convertible
debt
|
$
|
423,608
|
$
|
310,738
|
$
|
425,000
|
$
|
831,892
|
*
|
The
fair value of the convertible debt was determined based on quoted
market prices as reported by
Bloomberg.
|
(In thousands)
|
Balance
Sheet Location
|
Significant
Other
Observable
Inputs
(Level
2)
|
|||
Asset
|
|||||
Foreign currency
forward exchange contracts
|
Prepaid
expenses and other current assets
|
$
|
2,592
|
||
Foreign currency
option contracts
|
Prepaid
expenses and other current assets
|
8,851
|
|||
$
|
11,443
|
||||
Liability
|
|||||
Foreign currency
forward exchange contracts
|
Accrued
liabilities
|
$
|
29,816
|
||
Foreign currency
option contracts
|
Accrued
liabilities
|
15,975
|
|||
$
|
45,791
|
Year Ended
|
||||||||||||
(In
thousands)
|
December
28,
2008
|
December
30,
2007
|
December
31,
2006
|
|||||||||
Geographic
distribution of income (loss) before income taxes and equity in earnings
of unconsolidated investees:
|
||||||||||||
U.S.
income (loss)
|
$
|
25,145
|
$
|
(93,881
|
)
|
$
|
3,419
|
|||||
Non-U.S.
income
|
122,439
|
97,441
|
25,042
|
|||||||||
Income
before income taxes and equity in earnings of unconsolidated
investees
|
$
|
147,584
|
$
|
3,560
|
$
|
28,461
|
||||||
Provision
for (benefit from) income taxes:
|
||||||||||||
Current
tax (benefit) expense
|
||||||||||||
Federal
|
$
|
61,699
|
$
|
(67
|
)
|
$
|
241
|
|||||
State
|
11,641
|
647
|
100
|
|||||||||
Foreign
|
15,253
|
12,319
|
1,604
|
|||||||||
Total
current tax expense
|
88,593
|
12,899
|
1,945
|
|||||||||
Deferred
tax benefit
|
||||||||||||
Federal
|
(17,253
|
)
|
(14,499
|
)
|
—
|
|||||||
State
|
(1,972
|
)
|
(4,320
|
)
|
—
|
|||||||
Foreign
|
—
|
—
|
—
|
|||||||||
Total
deferred tax benefit
|
(19,225
|
)
|
(18,819
|
)
|
—
|
|||||||
Provision
for (benefit from) income taxes
|
$
|
69,368
|
$
|
(5,920
|
)
|
$
|
1,945
|
Year Ended
|
||||||||||||
(In
thousands)
|
December
28,
2008
|
December
30,
2007
|
December
31,
2006
|
|||||||||
Statutory
rate
|
35
|
%
|
35
|
%
|
35
|
%
|
||||||
Tax
at U.S. statutory rate
|
$
|
51,654
|
$
|
1,246
|
$
|
9,961
|
||||||
Foreign
rate differential
|
(21,472
|
)
|
(20,731
|
)
|
(7,162
|
)
|
||||||
State
income taxes, net of benefit
|
11,064
|
647
|
65
|
|||||||||
Recognition
of prior year benefits
|
—
|
—
|
(1,205
|
)
|
||||||||
Purchased
in-process research and development
|
—
|
3,351
|
—
|
|||||||||
Impairment
of acquisition-related intangible assets
|
—
|
4,924
|
—
|
|||||||||
Alternative
minimum tax
|
—
|
67
|
—
|
|||||||||
Tax
credits (research and development/investment tax credit)
|
(9,933
|
)
|
—
|
—
|
||||||||
Amortization
of intangible assets
|
5,287
|
—
|
—
|
|||||||||
Non-deductible
unrealized gain (loss)
|
3,292
|
—
|
—
|
|||||||||
Book-to-tax
differences
|
8,197
|
—
|
—
|
|||||||||
Benefit
of net operating losses not recognized
|
—
|
1,329
|
—
|
|||||||||
Non-deductible
stock option compensation expense
|
19,581
|
3,227
|
241
|
|||||||||
Other,
net
|
1,698
|
20
|
45
|
|||||||||
Total
|
$
|
69,368
|
$
|
(5,920
|
)
|
$
|
1,945
|
(In
thousands)
|
December 28,
2008
|
December 30,
2007
|
||||||
Deferred
tax assets:
|
||||||||
Net
operating loss carryforwards
|
$
|
864
|
$
|
709
|
||||
Research
and development credit and California manufacturing
credit carryforwards
|
2,466
|
1,491
|
||||||
Reserves
and accruals
|
30,103
|
16,456
|
||||||
SFAS
No. 133 unrealized losses
|
3,482
|
—
|
||||||
SFAS
No. 123(R) stock deductions
|
30,184
|
13,630
|
||||||
Total
deferred tax asset
|
67,099
|
32,286
|
||||||
Valuation
allowance
|
(45,932
|
)
|
(13,924
|
)
|
||||
Total
deferred tax asset, net of valuation allowance
|
21,167
|
18,362
|
||||||
Deferred
tax liabilities:
|
||||||||
Intangible
assets
|
(13,774
|
)
|
(16,138
|
)
|
||||
Equity
interest in Woongjin Energy
|
(5,600
|
)
|
—
|
|||||
Total
deferred tax liabilities
|
(19,374
|
)
|
(16,138
|
)
|
||||
Net
deferred tax asset
|
$
|
1,793
|
$
|
2,224
|
(In
thousands)
|
December
28,
2008
|
December 30,
2007
|
||||||
Balance
at the beginning of the period
|
$
|
4,172
|
$
|
1,120
|
||||
Additions
based on tax positions related to the current period
|
8,593
|
2,726
|
||||||
Additions
for tax positions of prior periods
|
—
|
326
|
||||||
Balance
at the end of the period
|
$
|
12,765
|
$
|
4,172
|
|
•
|
commencement,
continuation or completion of examinations of the Company’s tax returns by
the U.S. or foreign taxing authorities;
and
|
|
•
|
expiration
of statutes of limitation on the Company’s tax
returns.
|
Tax Jurisdictions
|
Tax Years
|
United
States
|
2004
and onward
|
California
|
2003
and onward
|
Switzerland
|
2004
and onward
|
Philippines
|
2004
and onward
|
(In
thousands, except share data)
|
December 28,
2008
|
December 30,
2007
|
||||||
Class A
common stock, $0.001 par value; 217,500,000 shares authorized; 44,055,644*
and 40,289,719* shares issued; 43,849,566* and 40,176,957* shares
outstanding, at December 28, 2008 and December 30, 2007,
respectively
|
$
|
44
|
$
|
40
|
||||
Class
B common stock, $0.001 par value; 150,000,000 shares and 157,500,000
shares authorized; 42,033,287 and 44,533,287 shares issued and
outstanding, at December 28, 2008 and December 30, 2007,
respectively
|
42
|
45
|
||||||
Total
common stock
|
$
|
86
|
$
|
85
|
*
|
Includes
approximately 0.7 million shares of restricted stock and a total of
4.7 million shares of class A common stock lent to LBIE and
CSI.
|
(In
thousands)
|
December 28,
2008
|
December 30,
2007
|
||||||
Stock
option plans
|
3,813
|
3,982
|
As
of
|
|||||||||
(In
thousands)
|
December
28,
2008
|
December
30,
2007
|
December
31,
2006
|
||||||
Stock
options
|
279
|
—
|
44
|
||||||
Restricted
stock awards and units
|
659
|
—
|
—
|
Year
Ended
|
|||||||||
(In
thousands)
|
December
28,
2008
|
December
30,
2007
|
December
31,
2006
|
||||||
Basic
weighted-average common shares
|
80,522
|
75,413
|
65,864
|
||||||
Effect
of dilutive securities:
|
|||||||||
Stock
options
|
2,555
|
4,203
|
5,147
|
||||||
Restricted
stock awards and units
|
309
|
357
|
76
|
||||||
Shares
subject to re-vesting restrictions
|
262
|
439
|
—
|
||||||
1.25%
debentures
|
783
|
620
|
—
|
||||||
0.75%
debentures
|
15
|
195
|
—
|
||||||
Diluted
weighted-average common shares
|
84,446
|
81,227
|
71,087
|
(In
thousands)
|
December 28,
2008
|
December 30,
2007
|
December 31,
2006
|
|||||||||
Cost
of systems revenue
|
$
|
10,745
|
$
|
8,187
|
$
|
—
|
||||||
Cost
of components revenue
|
8,144
|
4,213
|
846
|
|||||||||
Research
and development
|
3,988
|
1,817
|
1,197
|
|||||||||
Sales,
general and administrative
|
47,343
|
36,995
|
2,821
|
|||||||||
Total
stock-based compensation expense
|
$
|
70,220
|
$
|
51,212
|
$
|
4,864
|
(In
thousands)
|
December 28,
2008
|
December 30,
2007
|
December 31,
2006
|
|||||||||
Employee
stock options
|
$
|
4,256
|
$
|
7,165
|
$
|
3,930
|
||||||
Non-employee
stock options
|
—
|
—
|
304
|
|||||||||
Restricted
stock awards and units
|
38,032
|
13,121
|
677
|
|||||||||
Shares
and options released from re-vesting restrictions
|
28,888
|
31,292
|
—
|
|||||||||
Change
in stock-based compensation capitalized in inventory
|
(956
|
)
|
(366
|
)
|
(47
|
)
|
||||||
Total
stock-based compensation expense
|
$
|
70,220
|
$
|
51,212
|
$
|
4,864
|
(In
thousands, except years)
|
As
of
December
28,
2008
|
Weighted-Average
Amortization Period
(in
years)
|
||||||
Stock
options
|
$
|
11,731
|
2.8
|
|||||
Restricted
stock awards and units
|
92,756
|
2.6
|
||||||
Shares
subject to re-vesting restrictions
|
168
|
—
|
||||||
Total
unrecognized stock-based compensation cost
|
$
|
104,655
|
2.6
|
Year Ended
|
||||||||||||
December
28,
2008
|
December
30,
2007
|
December
31,
2006
|
||||||||||
Expected
term
|
6.5 years
|
6.5 years
|
6.5 years
|
|||||||||
Risk-free
interest rate
|
2.69
- 3.46%
|
4.58
- 4.68%
|
4.80
- 5.11%
|
|||||||||
Volatility
|
60%
|
90%
|
92%
|
|||||||||
Dividend
yield
|
0%
|
0%
|
0%
|
Shares
(in thousands)
|
Weighted-
Average
Exercise
Price Per Share
|
|||||||
Outstanding
as of January 1, 2006
|
6,572
|
3.41
|
||||||
Granted
|
44
|
39.05
|
||||||
Exercised
|
(1,529
|
)
|
2.54
|
|||||
Forfeited
|
(107
|
)
|
4.14
|
|||||
Outstanding
as of December 31, 2006
|
4,980
|
3.97
|
||||||
Options
exchanged/assumed in connection with PowerLight
acquisition
|
1,602
|
5.54
|
||||||
Granted
|
18
|
56.20
|
||||||
Exercised
|
(2,817
|
)
|
3.01
|
|||||
Forfeited
|
(82
|
)
|
13.36
|
|||||
Outstanding
as of December 30, 2007
|
3,701
|
5.44
|
||||||
Granted
|
170
|
48.10
|
||||||
Exercised
|
(1,129
|
)
|
3.60
|
|||||
Forfeited
|
(197
|
)
|
7.28
|
|||||
Outstanding
as of December 28, 2008
|
2,545
|
8.96
|
||||||
Exercisable
as of December 28, 2008
|
1,432
|
4.41
|
Stock
Options
|
Restricted
Stock Awards and Units
|
|||||||||||||||
Shares
(in thousands)
|
Weighted-
Average
Exercise Price
Per Share
|
Shares
(in thousands)
|
Weighted-
Average
Grant Date Fair
Value Per Share
|
|||||||||||||
Outstanding
as of January 1, 2006
|
4,789
|
$
|
3.82
|
15
|
$
|
30.04
|
||||||||||
Granted
|
44
|
39.05
|
230
|
35.43
|
||||||||||||
Forfeited
|
(1,692
|
)
|
3.56
|
(16
|
)
|
30.92
|
||||||||||
Outstanding
as of December 31, 2006
|
3,141
|
4.45
|
229
|
35.40
|
||||||||||||
Granted
|
1,620
|
6.10
|
1,141
|
71.64
|
||||||||||||
Vested(1)
|
(2,225
|
)
|
3.28
|
(105
|
)
|
43.18
|
||||||||||
Forfeited
|
(82
|
)
|
12.94
|
(91
|
)
|
51.00
|
||||||||||
Outstanding
as of December 30, 2007
|
2,454
|
6.29
|
1,174
|
68.74
|
||||||||||||
Granted
|
170
|
48.10
|
911
|
70.02
|
||||||||||||
Vested(1)
|
(1,314
|
)
|
4.32
|
(357
|
)
|
84.73
|
||||||||||
Forfeited
|
(197
|
)
|
7.28
|
(124
|
)
|
73.18
|
||||||||||
Outstanding
as of December 28, 2008
|
1,113
|
14.82
|
1,604
|
69.71
|
(1)
|
Restricted
stock awards and units vested include shares withheld on behalf of
employees to satisfy the minimum statutory tax withholding
requirements.
|
Options
Outstanding
|
Options
Exercisable
|
|||||||||||||||||||||||||||||||||
Range of Exercise Price
|
Shares
(in
thousands)
|
Weighted-
Average
Remaining
Contractual
Life
(in years)
|
Weighted-
Average
Exercise
Price per
Share
|
Aggregate
Intrinsic
Value
(in
thousands)
|
Shares
(in
thousands)
|
Weighted-
Average
Remaining
Contractual
Life
(in years)
|
Weighted-
Average
Exercise
Price per
Share
|
Aggregate
Intrinsic
Value
(in thousands)
|
||||||||||||||||||||||||||
$
|
0.04—1.77
|
464
|
3.47
|
$
|
0.51
|
$
|
16,184
|
334
|
3.78
|
$
|
0.53
|
$
|
11,632
|
|||||||||||||||||||||
2.00—7.00
|
1,505
|
5.97
|
3.68
|
47,696
|
965
|
5.93
|
3.54
|
30,729
|
||||||||||||||||||||||||||
9.50—17.00
|
145
|
6.81
|
10.19
|
3,651
|
66
|
6.81
|
10.21
|
1,656
|
||||||||||||||||||||||||||
17.46—43.01
|
315
|
8.03
|
26.46
|
2,956
|
63
|
7.45
|
28.91
|
457
|
||||||||||||||||||||||||||
44.50—67.93
|
116
|
9.35
|
61.89
|
—
|
4
|
8.36
|
56.20
|
—
|
||||||||||||||||||||||||||
2,545
|
5.97
|
8.96
|
$
|
70,487
|
1,432
|
5.55
|
4.41
|
$
|
44,474
|
Year
Ended
|
||||||||||||
December 28,
2008
|
December 30,
2007
|
December 31,
2006
|
||||||||||
Revenue
by geography:
|
||||||||||||
United
States
|
36
|
%
|
45
|
%
|
32
|
%
|
||||||
Europe:
|
||||||||||||
Spain
|
35
|
%
|
29
|
%
|
—
|
%
|
||||||
Germany
|
10
|
%
|
10
|
%
|
49
|
%
|
||||||
Other
|
12
|
%
|
11
|
%
|
9
|
%
|
||||||
Rest
of world
|
7
|
%
|
5
|
%
|
10
|
%
|
||||||
100
|
%
|
100
|
%
|
100
|
%
|
|||||||
Revenue
by segment:
|
||||||||||||
Systems
|
57
|
%
|
60
|
%
|
—
|
%
|
||||||
Components
|
43
|
%
|
40
|
%
|
100
|
%
|
||||||
100
|
%
|
100
|
%
|
100
|
%
|
|||||||
Gross
margin by segment:
|
||||||||||||
Systems
|
20
|
%
|
17
|
%
|
—
|
%
|
||||||
Components
|
32
|
%
|
23
|
%
|
21
|
%
|
Year Ended
|
|||||||
December
28,
2008
|
December
30,
2007
|
December
31,
2006
|
|||||
Significant
customers:
|
Business
Segment
|
||||||
Naturener
Group
|
Systems
|
18%
|
*
|
—%
|
|||
Sedwick
Corporate, S.L.
|
Systems
|
11%
|
*
|
—%
|
|||
SolarPack
|
Systems
|
*
|
18%
|
—%
|
|||
MMA
Renewable Ventures
|
Systems
|
*
|
16%
|
—%
|
|||
Conergy
AG
|
Components
|
*
|
*
|
25%
|
|||
Solon
AG
|
Components
|
*
|
*
|
24%
|
|||
PowerLight**
|
Components
|
n.a.
|
n.a.
|
16%
|
|||
General
Electric Company***
|
Components
|
*
|
*
|
10%
|
*
|
denotes
less than 10% during the period
|
**
|
acquired
by us on January 10, 2007
|
***
|
includes
its subcontracting partner, Plexus
Corporation
|
(In thousands)
|
December
28,
2008
|
December 30,
2007
|
||||||
Property,
plant and equipment by geography:
|
||||||||
Philippines
|
$
|
572,977
|
$
|
359,968
|
||||
United
States
|
38,259
|
18,026
|
||||||
Europe
|
815
|
—
|
||||||
Malaysia
|
518
|
—
|
||||||
Australia
|
118
|
—
|
||||||
$
|
612,687
|
$
|
377,994
|
·
|
March
30, 2008 by $0.4 million, which includes $0.3 million overstatement of
interest expense and $0.1 million understatement of equity in earnings of
unconsolidated subsidiaries, net of taxes.
|
·
|
June
29, 2008 by $1.7 million, which includes $0.3 million overstatement of
interest expense and $1.4 million understatement of equity in earnings of
unconsolidated subsidiaries, net of taxes.
|
·
|
September
28, 2008 by $4.8 million, which includes $2.4 million understatement of
gross margin, $0.4 million overstatement of interest expense and $0.2
million understatement of equity in earnings of unconsolidated
subsidiaries, net of taxes.
|
Three
Months Ended
|
||||||||||||||
(In
thousands, except per share data)
|
December 28
|
September 28
|
June
29
|
March
30
|
||||||||||
Fiscal
2008:
|
||||||||||||||
Revenue
|
$
|
400,967
|
$
|
377,500
|
$
|
382,751
|
$
|
273,701
|
||||||
Gross
margin
|
111,710
|
105,621
|
93,030
|
53,320
|
||||||||||
Net
income
|
29,549
|
21,379
|
28,608
|
12,757
|
||||||||||
Net
income per share of class A and class B common stock,
basic
|
0.35
|
0.27
|
0.36
|
0.16
|
||||||||||
Net
income per share of class A and class B common stock,
diluted
|
0.35
|
0.25
|
0.34
|
0.15
|
||||||||||
December 30
(a)
|
September 30
|
July 1
(b)
|
April 1
(c)
|
|||||||||||
Fiscal
2007:
|
||||||||||||||
Revenue
|
$
|
224,343
|
$
|
234,334
|
$
|
173,766
|
$
|
142,347
|
||||||
Gross
margin
|
47,182
|
38,405
|
29,792
|
32,425
|
||||||||||
Net
income (loss)
|
4,876
|
8,431
|
(5,345
|
)
|
1,240
|
|||||||||
Net
income (loss) per share of class A and class B common stock,
basic
|
0.06
|
0.11
|
(0.07
|
)
|
0.02
|
|||||||||
Net
income (loss) per share of class A and class B common stock,
diluted
|
0.06
|
0.10
|
(0.07
|
)
|
0.02
|
(a)
|
Included
a charge of $8.3 million for the write-off of unamortized debt issuance
costs as a result of the market price conversion trigger on its senior
convertible debentures being met.
|
(b)
|
Included
a charge of $14.1 million for the impairment of acquisition-related
intangible assets.
|
(c)
|
Included
a charge of $9.6 million for purchased in-process research and
development.
|
Page
|
||||
55
|
|
|||
56
|
|
|||
57
|
|
|||
58
|
|
|||
59
|
|
|||
60
|
|
|||
61
|
|
Exhibit
Number
|
Description
|
||
3.1
|
Form
of Restated Certificate of Incorporation of SunPower Corporation
(incorporated by reference to Exhibit 99.1 to the Registrant’s Current
Report on Form 8-K filed with the Securities and Exchange Commission on
August 12, 2008).
|
||
3.2
|
Amended
and Restated By-Laws of SunPower Corporation (incorporated by reference to
Exhibit 3.1 to the Registrant’s Current Report on Form 8-K filed with the
Securities and Exchange Commission on November 7,
2008).
|
||
4.1
|
Specimen
Class A Common Stock Certificate (incorporated by reference to Exhibit 4.1
to the Registrant’s Registration Statement on Form S-1/A filed with the
Securities and Exchange Commission on November 14,
2005).
|
||
4.2
|
Specimen
Class B Stock Certificate (incorporated by reference to Exhibit 4.6
to the Registrant’s Registration Statement on Form S-3ASR filed with the
Securities and Exchange Commission on September 10,
2008).
|
||
4.3
|
Indenture,
dated February 7, 2007, by and between SunPower Corporation and Wells
Fargo Bank, National Association (incorporated by reference to Exhibit
10.2 to the Registrant’s Current Report on Form 8-K filed with the
Securities and Exchange Commission on February 8,
2007).
|
||
4.4
|
First
Supplemental Indenture, dated February 7, 2007, by and between SunPower
Corporation and Wells Fargo Bank, National Association (incorporated by
reference to Exhibit 10.3 to the Registrant’s Current Report on Form 8-K
filed with the Securities and Exchange Commission on February 8,
2007).
|
||
4.5
|
Form
of Second Supplemental Indenture, by and between SunPower Corporation and
Wells Fargo Bank, National Association (incorporated by reference to
Exhibit 4.1 of Registrant’s Current Report on Form 8-K filed with the
Securities and Exchange Commission on July 26, 2007).
|
||
4.6
|
Rights
Agreement, dated as of August 12, 2008, by and between the Registrant
and Computershare Trust Company, N.A., as Rights Agent, including the form
of Certificate of Designation of Series A Junior Participating
Preferred Stock, the form of Certificate of Designation of Series B
Junior Participating Preferred Stock and the forms of Right Certificates,
Assignment and Election to Purchase and the Summary of Rights attached
thereto as Exhibits A, B, C and D, respectively (incorporated by reference
to Exhibit 4.1 to the Registrant’s current report on Form 8-K
filed with the Securities and Exchange Commission on August 12,
2008).
|
10.1
|
Share
Lending Agreement, dated July 25, 2007, by and among SunPower Corporation,
Credit Suisse International and Credit Suisse Securities (USA) LLC
(incorporated by reference to Exhibit 10.1 of Registrant’s Current Report
on Form 8-K filed with the Securities and Exchange Commission on July 26,
2007).
|
|
10.2
|
Amended
and Restated Share Lending Agreement, dated July 25, 2007, by and among
SunPower Corporation, Lehman Brothers International (Europe) Limited and
Lehman Brothers Inc. (incorporated by reference to Exhibit 10.2 of
Registrant’s Current Report on Form 8-K filed with the Securities and
Exchange Commission on July 26, 2007).
|
|
10.3^
|
SunPower
Corporation 1996 Stock Plan and form of agreements thereunder
(incorporated by reference to Exhibit 10.3 to the Registrant’s
Registration Statement on Form S-1 filed with the Securities and Exchange
Commission on August 25, 2005).
|
|
10.4^
|
SunPower
Corporation 2005 Stock Unit Plan (incorporated by reference to Exhibit
10.28 to the Registrant’s Registration Statement on Form S-1/A filed with
the Securities and Exchange Commission on October 31,
2005).
|
|
10.5^
|
Second
Amended and Restated SunPower Corporation 2005 Stock Incentive Plan and
forms of agreements thereunder (incorporated by reference to Exhibit 4.3
to the Registrant’s Registration Statement on Form S-8 filed with the
Securities and Exchange Commission on May 9, 2008).
|
|
10.6^
|
PowerLight
Corporation Common Stock Option and Common Stock Purchase Plan
(incorporated by reference to Exhibit 4.3 to the Registrant’s Registration
Statement on Form S-8 filed with the Securities and Exchange Commission on
January 25, 2007).
|
|
10.7^
|
Form
of PowerLight Corporation Incentive/Non-Qualified Stock Option, Market
Standoff and Stock Restriction Agreement (Employees) (incorporated by
reference to Exhibit 4.4 to the Registrant’s Registration Statement on
Form S-8 filed with the Securities and Exchange Commission on January 25,
2007).
|
|
10.8^
|
Form
of PowerLight Corporation Non-Qualified Stock Option, Market Standoff and
Stock Restriction Agreement (Directors and Consultants) (incorporated by
reference to Exhibit 4.5 to the Registrant’s Registration Statement on
Form S-8 filed with the Securities and Exchange Commission on January 25,
2007).
|
|
10.9^
|
Form
of Non-Qualified Stock Option Agreement, by and between PowerLight
Corporation and Dan Shugar (incorporated by reference to Exhibit 4.9 to
the Registrant’s Registration Statement on Form S-8 filed with the
Securities and Exchange Commission on January 25,
2007).
|
|
10.10
|
Form
of Indemnification Agreement for Directors and Officers (incorporated by
reference to Exhibit 10.8 to the Registrant’s Quarterly Report on Form
10-Q filed with the Securities and Exchange Commission on November 7,
2008).
|
|
10.11^*
|
Form
of Employment Agreement for Executive Officers, including Messrs. Werner,
Arriola, Hernandez, Dinwoodie, Ledesma, Wenger, Shugar, Neese, Richards
and Swanson.
|
|
10.12^
|
Amended
and Restated SunPower Corporation Annual Key Employee Bonus Plan
(incorporated by reference to Exhibit 10.7 to the Registrant’s Quarterly
Report on Form 10-Q filed with the Securities and Exchange Commission on
August 8, 2008).
|
|
10.13^
|
SunPower
Corporation Quarterly Key Initiative Bonus Plan (incorporated by reference
to Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q filed
with the Securities and Exchange Commission on May 9,
2008).
|
|
10.14^
|
SunPower
Corporation Management Career Transition Plan (incorporated by reference
to Exhibit 10.6 to the Registrant’s Quarterly Report on Form 10-Q filed
with the Securities and Exchange Commission on November 7,
2008).
|
|
10.15
|
Office
Lease Agreement, dated May 15, 2006 between SunPower Corporation and
Cypress Semiconductor Corporation (incorporated by reference to Exhibit
10.36 to the Registrant’s Quarterly Report on Form 10-Q filed with the
Securities and Exchange Commission on May 16, 2006).
|
|
10.16
|
First
Amendment to Lease, dated December 12, 2006, by and between SunPower
Corporation and Cypress Semiconductor Corporation (incorporated by
reference to Exhibit 10.2 to the Registrant’s Quarterly Report on Form
10-Q filed with the Securities and Exchange Commission on May 9,
2008).
|
|
10.17
|
Second
Amendment to Lease, dated July 1, 2007, by and between SunPower
Corporation and Cypress Semiconductor Corporation (incorporated by
reference to Exhibit 10.3 to the Registrant’s Quarterly Report on Form
10-Q filed with the Securities and Exchange Commission on May 9,
2008).
|
|
10.18
|
Third
Amendment to Lease, dated April 7, 2008, by and between SunPower
Corporation and Cypress Semiconductor Corporation (incorporated by
reference to Exhibit 10.6 to the Registrant’s Quarterly Report on Form
10-Q filed with the Securities and Exchange Commission on August 8,
2008).
|
|
10.19
|
Fourth
Amendment to Lease, effective August 12, 2008, by and between SunPower
Corporation and Cypress Semiconductor Corporation (incorporated by
reference to Exhibit 10.4 to the Registrant’s Quarterly Report on Form
10-Q filed with the Securities and Exchange Commission on November 7,
2008).
|
|
10.20*
|
Fifth
Amendment to Lease, dated October 1, 2008, by and between SunPower
Corporation and Cypress Semiconductor Corporation.
|
|
10.21
|
Standard
Industrial / Commercial Multi-Tenant Lease, dated December 15, 2006, by
and between PowerLight Corporation and FPOC, LLC (incorporated by
reference to Exhibit 10.4 to the Registrant’s Quarterly Report on Form
10-Q filed with the Securities and Exchange Commission on May 11,
2007).
|
|
10.22
|
First
Amendment to Lease, dated May 24, 2007, by and between PowerLight
Corporation and FPOC, LLC (incorporated by reference to Exhibit 10.1 to
the Registrant’s Quarterly Report on Form 10-Q filed with the Securities
and Exchange Commission on August 7,
2007).
|
10.23
|
Second
Amendment to Lease, dated December 18, 2007, by and between SunPower
Corporation, Systems and FPOC, LLC (incorporated by reference to Exhibit
10.24 to Registrant’s Annual Report on Form 10-K filed with the Securities
and Exchange Commission on March 3, 2008).
|
|
10.24
|
Third
Amendment to Lease, dated May 23, 2008, by and between SunPower
Corporation, Systems and FPOC, LLC (incorporated by reference to Exhibit
10.13 to the Registrant’s Quarterly Report on Form 10-Q filed with the
Securities and Exchange Commission on August 8, 2008).
|
|
10.25
|
PV
Risk Reduction Agreement, dated December 18, 2007, by and between SunPower
Corporation, Systems and FPOC, LLC (incorporated by reference to Exhibit
10.25 to Registrant’s Annual Report on Form 10-K filed with the Securities
and Exchange Commission on March 3, 2008.
|
|
10.26†
|
Credit
Agreement, dated July 13, 2007, by and between SunPower Corporation and
Wells Fargo Bank, National Association (incorporated by reference to
Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q filed with
the Securities and Exchange Commission on November 9,
2007).
|
|
10.27
|
First
Amendment to Credit Agreement, dated August 20, 2007, by and between
SunPower Corporation and Wells Fargo Bank, National Association
(incorporated by reference to Exhibit 10.9 to the Registrant’s Quarterly
Report on Form 10-Q filed with the Securities and Exchange Commission on
November 9, 2007).
|
|
10.28
|
Second
Amendment to Credit Agreement, dated August 31, 2007, by and between
SunPower Corporation and Wells Fargo Bank, National Association
(incorporated by reference to Exhibit 10.10 to the Registrant’s Quarterly
Report on Form 10-Q filed with the Securities and Exchange Commission on
November 9, 2007).
|
|
10.29
|
Third
Amendment to Credit Agreement, dated February 13, 2008, by and between
SunPower Corporation and Wells Fargo Bank, National Association
(incorporated by reference to Exhibit 10.11 to Amendment No. 1 to the
Registrant’s Quarterly Report on Form 10-Q/A filed with the Securities and
Exchange Commission on May 9, 2008).
|
|
10.30†
|
Fourth
Amendment to Credit Agreement, dated April 4, 2008, by and between
SunPower Corporation and Wells Fargo Bank, National Association
(incorporated by reference to Exhibit 10.1 to the Registrant’s Quarterly
Report on Form 10-Q filed with the Securities and Exchange Commission on
August 8, 2008).
|
|
10.31
|
Fifth
Amendment to Credit Agreement, dated May 19, 2008, by and between SunPower
Corporation and Wells Fargo Bank, National Association (incorporated by
reference to Exhibit 10.11 to the Registrant’s Quarterly Report on Form
10-Q filed with the Securities and Exchange Commission on August 8,
2008).
|
|
10.32†
|
Security
Agreement, dated July 13, 2007, by and between SunPower Corporation and
Wells Fargo Bank, National Association (incorporated by reference to
Exhibit 10.2 to the Registrant’s Quarterly Report on Form 10-Q filed with
the Securities and Exchange Commission on November 9,
2007).
|
|
10.33†
|
First
Amendment to Security Agreement: Deposit Account, dated April
4, 2008, by and between SunPower Corporation and Wells Fargo Bank,
National Association (incorporated by reference to Exhibit 10.2 to the
Registrant’s Quarterly Report on Form 10-Q filed with the Securities and
Exchange Commission on August 8, 2008).
|
|
10.34
|
Continuing
Guaranty, dated July 13, 2007, by and between SunPower North America,
Inc., SunPower Corporation, Systems and Wells Fargo Bank, National
Association (incorporated by reference to Exhibit 10.3 to the Registrant’s
Quarterly Report on Form 10-Q filed with the Securities and Exchange
Commission on November 9, 2007).
|
|
10.35
|
Joinder
to Continuing Guaranty, dated April 4, 2008, by SunPower Systems SA
(incorporated by reference to Exhibit 10.5 to the Registrant’s Quarterly
Report on Form 10-Q filed with the Securities and Exchange Commission on
August 8, 2008).
|
|
10.36†
|
Securities
Account Control Agreement: Securities Account, dated April
4, 2008, by and between SunPower Corporation and Wells Fargo Bank,
National Association (incorporated by reference to Exhibit 10.3 to the
Registrant’s Quarterly Report on Form 10-Q filed with the Securities and
Exchange Commission on August 8, 2008).
|
|
10.37†
|
Amended
and Restated Addendum to Security Agreement: Securities Account, dated May
19, 2008, between SunPower Corporation and Wells Fargo Bank National
Association (incorporated by reference to Exhibit 10.12 to the
Registrant’s Quarterly Report on Form 10-Q filed with the Securities and
Exchange Commission on August 8, 2008).
|
|
10.38†*
|
Facility
Agreement, dated December 18, 2008, by and between SunPower Malaysia
Manufacturing Sdn. Bhd. and the Government of Malaysia.
|
|
10.39†*
|
Debenture,
dated December 18, 2008, by and between SunPower Malaysia Manufacturing
Sdn. Bhd. and the Government of Malaysia.
|
|
10.40†*
|
Deed
of Assignment, dated December 18, 2008, by and between SunPower Malaysia
Manufacturing Sdn. Bhd. and the Government of Malaysia.
|
|
10.41†
|
Supply
Agreement, dated June 30, 2006, by and between SunPower Philippines
Manufacturing, Ltd. and DC Chemical Co., Ltd. (incorporated by reference
to Exhibit 10.1 to the Registrant’s Quarterly Report on Form 10-Q filed
with the Securities and Exchange Commission on August 16,
2006).
|
|
10.42†
|
Long-Term
Supply Agreement II, dated July 16, 2007, by and between SunPower
Corporation and Hemlock Semiconductor Corporation (incorporated by
reference to Exhibit 10.4 to the Registrant’s Quarterly Report filed with
the Securities and Exchange Commission on November 9,
2007).
|
|
10.43†
|
Form
of Long-Term Polysilicon Supply Agreement, effective January 10, 2008, by
and between SunPower Corporation and a joint venture (JVCo) to be formed
by NorSun AS, Swicorp Joussour Company and Chemical Development Company
(incorporated by reference to Exhibit 10.5 to the Registrant’s Quarterly
Report on Form 10-Q filed with the Securities and Exchange Commission on
May 9, 2008).
|
|
10.44†
|
Long-Term
Polysilicon Supply Agreement, effective January 10, 2008, by and between
SunPower Corporation and NorSun AS (incorporated by reference to Exhibit
10.6 to the Registrant’s Quarterly Report on Form 10-Q filed with the
Securities and Exchange Commission on May 9,
2008).
|
10.45†
|
Poly
Silicon Supply Agreement, dated February 8, 2008, by and between SunPower
Corporation and Jupiter Corporation Ltd (incorporated by reference to
Exhibit 10.10 to the Registrant’s Quarterly Report on Form 10-Q filed with
the Securities Exchange Commission on May 9, 2008).
|
|
10.46†
|
Ingot
Supply Agreement, dated December 22, 2006, by and between SunPower
Corporation and Woongjin Energy Co., Ltd. (incorporated by reference to
Exhibit 10.62 to the Registrant’s Annual Report on Form 10-K filed with
the Securities and Exchange Commission on March 2,
2007).
|
|
10.47†
|
Amendment
No. 1 to Ingot Supply Agreement, dated August 4, 2008, by and between
SunPower Corporation and Woongjin Energy Co., Ltd. (incorporated by
reference to Exhibit 10.2 to the Registrant’s Quarterly Report on Form
10-Q filed with the Securities and Exchange Commission on November 7,
2008).
|
|
10.48†
|
Long-Term
Ingot and Wafer Supply Agreement, dated August 9, 2007, by and between
SunPower Corporation and NorSun AS (incorporated by reference to Exhibit
10.7 to the Registrant’s Quarterly Report on Form 10-Q filed with the
Securities and Exchange Commission on November 9,
2007).
|
|
10.49†
|
Wafering
Supply and Sales Agreement, dated October 1, 2007, by and between SunPower
Philippines Manufacturing Ltd. and First Philec Solar Corp. (incorporated
by reference to Exhibit 10.12 to the Registrant’s Quarterly Report on Form
10-Q filed with the Securities and Exchange Commission on November 9,
2007).
|
|
10.50†
|
Ingot/Wafer
Agreement, dated December 3, 2007, by and between SunPower Corporation and
Jiawei SolarChina Co., Ltd (incorporated by reference to Exhibit 10.37 to
the Registrant’s Annual Report on Form 10-K filed with the Securities and
Exchange Commission on March 3, 2008).
|
|
10.51†
|
First
Amendment to Ingot and Wafer Agreement, dated May 13, 2008, by and between
SunPower Corporation and Jiawei SolarChina Co., Ltd. (incorporated by
reference to Exhibit 10.10 to the Registrant’s Quarterly Report on Form
10-Q filed with the Securities and Exchange Commission on August 8,
2008).
|
|
10.52†
|
Polysilicon
Supply Agreement, dated December 22, 2006, by and between SunPower
Philippines Manufacturing, Ltd. and Woongjin Energy Co., Ltd.
(incorporated by reference to Exhibit 10.61 to the Registrant’s Annual
Report on Form 10-K filed with the Securities and Exchange Commission on
March 2, 2007).
|
|
10.53†
|
Amendment
to Polysilicon Suppy Agreement, dated January 8, 2008, by and between
SunPower Philippines Manufacturing, Ltd. and Woongjin Energy Co., Ltd.
(incorporated by reference to Exhibit 10.4 to the Registrant’s Quarterly
Report on Form 10-Q filed with the Securities and Exchange Commission on
May 9, 2008).
|
|
10.54†
|
Amendment
No. 2 to Polysilicon Supply Agreement, dated August 4, 2008, by and
between SunPower Philippines Manufacturing, Ltd. and Woognjin Energy Co.,
Ltd. (incorporated by reference to Exhibit 10.3 to the Registrant’s
Quarterly Report on Form 10-Q filed with the Securities and Exchange
Commission on November 7, 2008).
|
|
10.55†
|
Long-Term
Polysilicon Supply Agreement, dated August 9, 2007, by and between
SunPower Corporation and NorSun AS (incorporated by reference to Exhibit
10.8 to the Registrant’s Quarterly Report on Form 10-Q filed with the
Securities and Exchange Commission on November 9,
2007).
|
|
10.56†
|
Turnkey
Engineering, Procurement and Construction Agreement, dated July 3, 2008,
by and between SunPower Corporation, Systems and Florida Power & Light
Company (incorporated by reference to Exhibit 10.1 to Registrant’s
Quarterly Report on Form 10-Q filed with the Securities and Exchange
Commission on November 7, 2008).
|
|
10.57*
|
Amendment
to Turnkey, Engineering, Procurement and Construction Agreement, dated
October 7, 2008, by and between SunPower Corporation, Systems and Florida
Power & Light Company.
|
|
10.58†*
|
Amendment
Two to Turnkey, Engineering, Procurement and Construction Agreement, dated
November 21, 2008, by and between SunPower Corporation, Systems and
Florida Power & Light Company.
|
|
10.59†*
|
Photovoltaic
Equipment Master Supply Agreement, dated November 4, 2008, by and between
SunPower Italia S.r.l. and Ecoware S.p.A.
|
|
10.60†*
|
Photovoltaic
Equipment Master Supply Agreement, dated November 21, 2008, by and between
SunPower GmbH and City Solar Kraftwerke AG.
|
|
10.61
|
Tax
Sharing Agreement, dated October 6, 2005, by and between SunPower
Corporation and Cypress Semiconductor Corporation (incorporated by
reference to Exhibit 10.16 to the Registrant’s Registration Statement on
Form S-1/A filed with the Securities and Exchange Commission on
October 11, 2005).
|
|
10.62
|
Amendment
No. 1 to Tax Sharing Agreement, dated August 12, 2008, by and between
SunPower Corporation and Cypress Semiconductor Corporation (incorporated
by reference to Exhibit 10.1 to the Registrant’s Current Report on Form
8-K filed with the Securities and Exchange Commission on August 12,
2008).
|
|
21.1*
|
List
of Subsidiaries.
|
|
23.1*
|
Consent
of Independent Registered Public Accounting Firm.
|
|
24.1*
|
Power
of Attorney.
|
|
31.1*
|
Certification
by Chief Executive Officer Pursuant to Rule
13a-14(a)/15d-14(a).
|
|
31.2*
|
Certification
by Chief Financial Officer Pursuant to Rule
13a-14(a)/15d-14(a).
|
|
32.1*
|
Certification
Furnished Pursuant to 18 U.S.C. Section 1350 as Adopted Pursuant to
Section 906 of the Sarbanes-Oxley Act of
2002.
|
(In
thousands)
|
Balance at
Beginning of
Period
|
Charges
(Releases)
to
Expenses/Revenues
|
Deductions
|
Balance at End
of
Period
|
||||||||||||
Allowance
for doubtful accounts:
|
||||||||||||||||
Year
ended December 28, 2008
|
$
|
1,373
|
$
|
2,182
|
$
|
(1,692
|
)
|
$
|
1,863
|
|||||||
Year
ended December 30, 2007
|
557
|
816
|
—
|
1,373
|
||||||||||||
Year
ended December 31, 2006
|
317
|
272
|
(32
|
)
|
557
|
|||||||||||
Allowance
for sales returns:
|
||||||||||||||||
Year
ended December 28, 2008
|
$
|
368
|
$
|
63
|
$
|
(200
|
)
|
$
|
231
|
|||||||
Year
ended December 30, 2007
|
445
|
2,172
|
(2,249
|
)
|
368
|
|||||||||||
Year
ended December 31, 2006
|
110
|
808
|
(473
|
)
|
445
|
|||||||||||
Valuation
allowance for deferred tax asset:
|
||||||||||||||||
Year
ended December 28, 2008
|
$
|
13,924
|
$
|
32,008
|
$
|
—
|
$
|
45,932
|
||||||||
Year
ended December 30, 2007
|
9,836
|
4,088
|
—
|
13,924
|
||||||||||||
Year
ended December 31, 2006
|
9,278
|
558
|
—
|
9,836
|
SUNPOWER CORPORATION
|
||||
Dated:
February 26, 2008
|
By:
|
/s/ DENNIS
V. ARRIOLA
|
||
Dennis
V. Arriola
|
||||
Senior
Vice President and
Chief
Financial Officer
|
Signature
|
Title
|
Date
|
||
/s/
THOMAS H. WERNER
|
Chief
Executive Officer and Director
|
February
26, 2008
|
||
Thomas
H. Werner
|
(Principal
Executive Officer)
|
|||
/s/
DENNIS V. ARRIOLA
|
Senior
Vice President and
Chief
Financial Officer
|
February
26, 2008
|
||
Dennis
V. Arriola
|
(Principal
Financial and Accounting Officer)
|
|||
*
|
Chairman
of the Board of Directors
|
February
26, 2008
|
||
T.J.
Rodgers
|
||||
*
|
Director
|
February
26, 2008
|
||
W.
Steve Albrecht
|
||||
*
|
Director
|
February
26, 2008
|
||
Betsy
S. Atkins
|
||||
*
|
Director
|
February
26, 2008
|
||
Uwe-Ernst
Bufe
|
||||
*
|
Director
|
February
26, 2008
|
||
Thomas
R. McDaniel
|
||||
*
|
Director
|
February
26, 2008
|
||
Patrick
Wood
|
Exhibit
Number
|
Description
|
||
10.11^*
|
Form
of Employment Agreement for Executive Officers, including Messrs. Werner,
Arriola, Hernandez, Dinwoodie, Ledesma, Wenger, Shugar, Neese, Richards
and Swanson.
|
||
10.20*
|
Fifth
Amendment to Lease, dated October 1, 2008, by and between SunPower
Corporation and Cypress Semiconductor Corporation.
|
||
10.38†*
|
Facility
Agreement, dated December 18, 2008, by and between SunPower Malaysia
Manufacturing Sdn. Bhd. and the Government of Malaysia.
|
||
10.39†*
|
Debenture,
dated December 18, 2008, by and between SunPower Malaysia Manufacturing
Sdn. Bhd. and the Government of Malaysia.
|
||
10.40†*
|
Deed
of Assignment, dated December 18, 2008, by and between SunPower Malaysia
Manufacturing Sdn. Bhd. and the Government of Malaysia.
|
||
10.57*
|
Amendment
to Turnkey, Engineering, Procurement and Construction Agreement, dated
October 7, 2008, by and between SunPower Corporation, Systems and Florida
Power & Light Company.
|
||
10.58†*
|
Amendment
Two to Turnkey, Engineering, Procurement and Construction Agreement, dated
November 21, 2008, by and between SunPower Corporation, Systems and
Florida Power & Light Company.
|
||
10.59†*
|
Photovoltaic
Equipment Master Supply Agreement, dated November 4, 2008, by and between
SunPower Italia S.r.l. and Ecoware S.p.A.
|
||
10.60†*
|
Photovoltaic
Equipment Master Supply Agreement, dated November 21, 2008, by and between
SunPower GmbH and City Solar Kraftwerke AG.
|
||
21.1*
|
List
of Subsidiaries.
|
||
23.1*
|
Consent
of Independent Registered Public Accounting Firm.
|
||
24.1*
|
Power
of Attorney.
|
||
31.1*
|
Certification
by Chief Executive Officer Pursuant to Rule
13a-14(a)/15d-14(a).
|
||
31.2*
|
Certification
by Chief Financial Officer Pursuant to Rule
13a-14(a)/15d-14(a).
|
||
32.1*
|
Certification
Furnished Pursuant to 18 U.S.C. Section 1350 as Adopted Pursuant to
Section 906 of the Sarbanes-Oxley Act of
2002.
|
1.
|
Section
7(a) provides for a lump-sum payment equal to 36 months (instead of 24
months) of base salary, a lump-sum payment equal to the target annual
bonus multiplied by three (instead of two), continuation of health
benefits for up to 36 months (instead of 24
months).
|
2.
|
Section
8(a) grants accelerated vesting of awards, regardless of whether
termination or resignation is in Connection with a Change of Control
(instead of only in Connection with a Change of
Control). However, it specifies that vesting is not accelerated
with respect to performance-based equity awards which are subject to
achievement of specified milestones that are not achieved as of the
Termination Date.
|
3.
|
Section
9(e) requires Mr. Werner’s agreement not to compete for a period of twelve
months following the Termination Date if his employment is terminated by
the company without Cause or by him for Good Reason, and is not in
Connection with a Change of
Control.
|
1.
|
The
agreements become effective on November 1, 2008 (instead of August 28,
2008), when the officers’ pre-existing employment agreements expire, and
the new agreements expire on August 28,
2011.
|
2.
|
Section
10(f) cites the company’s current business location in Richmond,
California (instead of San Jose, California) as the original location for
determining whether the officers’ primary place of business is moved more
than 45 miles from their current primary place of
business.
|
1.
|
Section
7(a) provides that Mr. Neese only becomes eligible for certain benefits as
of July 2, 2009, and that prior to July 2, 2009 Mr. Neese is entitled to a
lump-sum payment equal to $1,500,000 if his employment is terminated by
the company without Cause.
|
1.
|
Section
17 incorporates Mr. Arriola’s October 13, 2008 offer letter that provides
the following additional terms:
|
a.
|
Eligible
to receive a $300,000.00 sign on bonus (less withholding tax). This bonus
will be paid in full after completion of 30 days continuous employment
with SunPower. The cash bonus shall be subject to a vest rate of 1/12th
per month. It is designed in part to incentivize you to remain
employed with SunPower for at least one full year. Therefore, it will not
be vested or earned until you have completed each monthly benchmark, and
it will not be earned in full until Arriola has completed a full year of
service with SunPower. In the event of Arriola’s voluntary termination
from SunPower before completing one year of service, unless for “Good
Reason” as defined by the Employment Agreement, the unvested cash bonus
shall be repaid by you to SunPower. If Arriola is terminated without
cause within 12 months of employment, he will not be required to repay the
unvested portion of the sign on
bonus.
|
b.
|
SunPower
will reimburse Arriola for personal legal expenses to review his offer
terms and agreements, not to exceed
$10,000.
|
c.
|
Entitled
to participate in SunPower’s Executive Relocation program. A summary of
relocation benefits is included in the table
below:
|
Benefit
|
SunPower
Executive Relocation Practice
|
|
Moving
|
Household
Goods
|
100%
of cost to move one household, including speciality pack and ship
items
|
Car(s)
|
Ship
2 cars
|
|
Recreational
Vehicles
|
none
|
|
Household
Goods storage
|
if
needed, for 12 month period
|
|
Househunting
|
Number
of trips
|
3
trips
|
Duration
|
10
days
|
|
Spouse
|
Included
|
|
Temporary
Expenses
|
Term
|
Up
to 60 days
|
Amount
|
Actual
expenses
|
|
Settling
in Allowance
|
1
month's salary payable after 30 days worked
|
|
Temporary
Housing
|
Up
to 12 months, not to exceed $80,000, or until home
sells
|
|
Selling
Old Home
|
Closing
costs
|
All
closing costs
|
Buying
old home
|
No
purchase of old home
|
|
Loss
on sale protection
|
$500,000.00
maximum benefit
|
|
Carrying
cost
|
none
|
|
Buying
New Home
|
Closing
costs
|
Cover
all closing costs on purchase of home or land
|
Mortgage
points
|
up
to 2 points
|
|
Company
Loans
|
none
|
|
Tax
Support
|
Gross
up
|
Provided
on all taxable income for relocation expenses described in this offer
letter
|
Tax
advice
|
Provided
for 2 year period
|
A.
|
“A
GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW
OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE,
WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH
THE DEBTOR.”
|
|
b.
|
Has
carefully read and fully understands all of the provisions of this
Agreement.
|
|
For
Employee:
|
|
Dated:
|
|
For
SunPower Corporation:
|
|
Dated:
|
By:
|
1.
|
Basic
Terms Item #9 of the Original Lease is hereby amended to state in its
entirety as follows:
|
Lease
Months
|
Monthly
Base
Rent/SF
|
Rentable
Square
Feet
|
Monthly
Base
|
1-2
|
$0.00/SF
|
43,732
|
$ -
|
3-8
|
$2.16/SF
|
43,732
|
$ 94,461
|
9-12
|
$2.16/SF
|
45,840
|
$ 99,014
|
13-14
|
$2.25/SF
|
45,840
|
$ 103,140
|
15-24
|
$2.25/SF
|
51,228
|
$ 115,263
|
25-29
|
$2.34/SF
|
55,594
|
$ 130,190
|
30-36
|
$2.34/SF
|
60,320
|
$ 141,149
|
37-48
|
$2.43/SF
|
60,320
|
$ 146,578
|
49-60
|
$2.53/SF
|
60,320
|
$ 152,610
|
2.
|
The
monthly Base Rent remains unchanged through the 8th
month (or December 31, 2006) as per Original Lease. However,
Article 2, Section 2.1, is hereby amended such that the monthly Base Rent
shall be adjusted to include the additional space added pursuant to
Section 1 of this Fifth Amendment. Effective
during the 9th
month of the term (or January 1, 2007), the monthly Base
Rent shall be adjusted to include the addition 2,108 RSF,
effective during the 15th
month of the term (or July 1, 2007), the monthly Base Rent shall be
adjusted to include the additional 5,388 RSF, effective during the 25th
month of the term (or May 1, 2008), the monthly Base Rent
shall be adjusted to include the additional 4,366 RSF and, effective
during the 30th
month of the term (or October 1, 2008), the monthly base rent shall be
adjusted to include the additional 4,726 RSF in each case as
shown in the Base Rent Table in Basic Terms Item #9 as amended by this
Fifth Amendment.
|
3.
|
Article
3, Section 3.3 shall be amended to state the adjustment of Tenant’s
Prorata Share of Excess Operating Expenses as
follows:
|
4.
|
Exhibit
“A”, the Floor Plan of the Original Lease shall be amended as shown in
Exhibit A-1 of this Fifth
Amendment.
|
5.
|
In
the event of any inconsistency between this Fifth Amendment and
the Original Lease, the terms in this Fifth Amendment
shall prevail. Except as modified herein, the Original Lease
remains in full force and effect.
|
6.
|
The
Original Lease, as amended by this Fifth Amendment, constitutes the entire
agreement between the parties and supersedes any previous agreements
between the parties with respect to the subject matter of this Fifth
Amendment. If any provision of this Fifth Amendment is held to
be illegal, invalid or unenforceable, in whole or
in part, such provision will be modified to the minimum extent necessary
to make it legal, valid and enforceable, and the legality,
validity and enforceability of the remaining provisions will not be
affected thereby.
|
CYPRESS SEMICONDUCTOR CORP" | |||
|
By:
|
/s/ Neil H. Weiss | |
Name: | Neil H. Weill | ||
Title: | Sr. Vice President, Treasurer | ||
Date: |
10/24/08
|
SUNPOWER CORPORATION | |||
|
By:
|
/s/ Douglas J. Richards | |
Name: | Douglas J. Richards | ||
Title: | VP | ||
Date: | 10/18/08 |
CONFIDENTIAL
TREATMENT REQUESTED
--
CONFIDENTIAL
PORTIONS OF THIS DOCUMENT HAVE BEEN REDACTED AND HAVE BEEN SEPARATELY
FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
|
1.
|
INTERPRETATION
|
2
|
|
2.
|
THE
FACILITY
|
8
|
|
4.
|
DISBURSEMENT
|
10
|
|
6.
|
INTEREST AND
DEFAULT INTEREST
|
12
|
|
7.
|
REPAYMENT
|
13
|
|
8.
|
PREPAYMENT
|
14
|
|
9.
|
CREATION OF
SECURITY
|
14
|
|
10.
|
REPRESENTATIONS AND WARRANTIES
|
14
|
|
11.
|
PARTICULAR
COVENANTS
|
16
|
|
12.
|
DEFAULT
|
20
|
|
13.
|
FULL
PAYMENT
|
23
|
|
14.
|
EXPENSES AND
COSTS
|
23
|
|
15.
|
ASSIGNMENT
AND TRANSFERS
|
23
|
|
16.
|
CHANGE IN
LAW
|
24
|
|
17.
|
INDEPENDENT
EXERCISE OF RIGHTS
|
24
|
|
18.
|
RIGHTS
CUMULATIVE, WAIVERS
|
24
|
|
19.
|
TIME
|
25
|
|
20.
|
AMENDMENT
|
25
|
|
21.
|
NOTICES
|
25
|
|
22.
|
SEVERABILITY
|
26
|
|
23.
|
GOVERNING LAW
AND JURISDICTION
|
26
|
|
24.
|
COMPLIANCE
WITH LAWS
|
26
|
|
25.
|
PRINCIPAL
INSTRUMENT
|
27
|
Schedule
1 – Project and Project Cost
|
||
Schedule
2 – Form of Certificate Notice
|
||
Schedule
3 – Form of Drawdown
|
||
Schedule
4 – Form of Receipt
|
||
Schedule
5 – Repayment Schedule
|
||
Schedule
6 – Form of Prepayment Notice
|
||
Schedule
7 – Form of Certificate of Payment
|
||
Schedule
8 – Form of Withdrawal Notice
|
(1)
|
THE
GOVERNMENT OF MALAYSIA, for this purpose being represented by the
Ministry of Finance, Malaysia and having its address at Kompleks
Kementerian Kewangan, No. 5, Persiaran Perdana, Precinct 2, 62592
Putrajaya (the “Lender”)
of the one part,
|
(2)
|
SUNPOWER
MALAYSIA MANUFACTURING SDN
BHD (Company No. 824246-W), a
company incorporated in Malaysia under the Companies Act 1965 and having
its registered address at Level 41 – Suite B, Menara Maxis,
Kuala Lumpur City Centre, 50088 Kuala Lumpur (the “Borrower”)
of the other part.
|
A.
|
The
Borrower is a company incorporated in Malaysia under the Companies Act
1965 and is in the business of manufacturing and sale of solar powered
products.
|
B.
|
In
consideration of the Borrower agreeing to undertake the Project (as
hereinafter defined) the Lender has agreed to make available to the
Borrower a fixed rate term loan facility of up to the aggregate principal
amount of Ringgit One Billion (RM1,000,000,000.00) only (“Facility”),
upon the terms and conditions contained
herein.
|
C.
|
In
order to secure all amounts owing by the Borrower to the Lender under the
Facility, the Borrower has agreed to create certain security in favour of
the Lender.
|
|
IT IS
HEREBY AGREED as
follows:
|
1.1
|
In
this Agreement, unless the context otherwise requires, the following words
and expressions shall have the following
meanings:
|
Accrued
Interest A
|
means
the aggregate interest accrued up to the First Repayment Date on the
aggregate amount of all Drawdowns made in respect of Tranche
A;
|
Accrued
Interest B
|
means
the aggregate interest accrued up to the First Repayment Date on the
aggregate amount of all Drawdowns made in respect of Tranche
B;
|
Availability
Period
|
means
the period of sixty (60) months commencing from the date of execution of
this Agreement;
|
|
Borrower
|
means
SunPower Manufacturing Malaysia Sdn. Bhd. (Company No. 824246-W), a
company incorporated in Malaysia under the Companies Act 1965 and having
its registered address at Level 41 – Suite B, Menara
Maxis, Kuala Lumpur City Centre, 50088 Kuala Lumpur and includes its
successors in title and permitted
assigns;
|
|
Business
Day
|
means
any day (other than a Saturday, Sunday, public holiday or unscheduled
holiday in Kuala Lumpur) on which banks are open for business in Kuala
Lumpur;
|
|
Debenture
|
means
the debenture to be executed by the Borrower in favour of the Lender for
purpose of securing the repayment of the Outstanding
Amount;
|
Deed
of Assignment
|
means
the agreement between the Borrower and the Lender of even date in respect
of the assignment by the Borrower of all its rights, interest and title in
and to the Special Loan Account in favour of the
Lender;
|
|
Drawdown
|
means
the amount of a drawdown made or to be made under Clause
4;
|
Drawdown
Date
|
means
the date on which a Drawdown is made pursuant to Clause
4;
|
|
Effective
Date
|
means
the first Drawdown Date;
|
Event
of Default
|
means
any of the events mentioned in Clause 12.1 hereof or any event which, with
the lapse of time and/or the giving of notice would constitute any of the
events mentioned in Clause 12.1;
|
|
Facility
|
means
the fixed rate term loan facility in the maximum aggregate principal
amount of Ringgit One Billion (RM1,000,000,000.00) only, which comprises
of Tranche A and Tranche B which is more particularly set out in Clause
2.2;
|
Final
Repayment Date
|
means
30 October 2016;
|
First
Repayment Date
|
means
30 July 2015;
|
|
Indebtedness
|
means
at any given time, the Outstanding Amount and all other indebtedness of
the Borrower to the Lender arising under or in connection with the
Facility or this Agreement irrespective of whether the debts or
liabilities are present or future, actual, prospective or contingent, owed
or incurred as principal, interest, fees, charges, taxes, duties,
reasonable damages (whether for breach of contract or tort or incurred on
any other ground), losses, costs, expenses or on any other
account;
|
|
Lender
|
means
the Government of Malaysia;
|
Loan
Withdrawal Notice
|
means
the notice as specified under Clause 5.4 and in the form set out in
Schedule 8 of this Agreement.
|
Material
Adverse Effect
|
means
any event, circumstance or condition materially impairing the ability of
the Borrower to perform its financial obligations under this Agreement and
the Borrower does not take any action to remedy such event, circumstance
or condition within thirty (30) Business
Days.
|
|
MIDA
|
Malaysian
Industrial Development Authority, a body incorporated under the Malaysian
Industrial Development Authority (Incorporation) Act 1965, being an agency
under the Ministry of International Trade and
Industry;
|
|
Month
|
means
a period beginning in one (1) calendar month and ending in the next
calendar month on the day numerically corresponding to the day of the
calendar month on which it commences or, where there is no date in the
next calendar month numerically corresponding as aforesaid, the last day
of such calendar month (and “months”, “monthly” shall be construed
accordingly);
|
Outstanding
Amount
|
collectively
means Outstanding Amount A and Outstanding Amount
B;
|
Outstanding
Amount A
|
means
at any given time, the aggregate amount of all Drawdowns made in respect
of Tranche A and all Accrued Interest
A;
|
Outstanding
Amount B
|
means
at any given time, the aggregate amount of all Drawdowns made in respect
of Tranche B and all Accrued Interest
B;
|
Prepayment
Notice
|
means
a notice of prepayment from the Borrower to the Lender, in the form or
substantially in the form set out in Schedule
6;
|
|
Project
|
means
the design, development and manufacture of silicon photovoltaic wafers,
cells, modules panels as more particularly describe in detail in Schedule
1, in Malaysia;
|
|
Receipt
|
means
the notice issued by the Borrower to the Lender certifying the receipt of
the Drawdown on the relevant Drawdown Date, in the form set out in
Schedule 4;
|
Repayment
Dates
|
subject
to Clauses 1.2(b) and 7, means the dates as set out in the Repayment
Schedule as annexed in Schedule 5
herein;
|
Repayment
Period
|
means
the period commencing from the First Repayment Date to the Final Repayment
Date;
|
Repayment
Schedule
|
means
the schedule of repayments in the amounts and at the times as set out in
Schedule 5A and Schedule 5B referred to in Clause 6.1(a) and Clause 6.1(b)
respectively;
|
RM
and Ringgit
|
means
the lawful currency of Malaysia;
|
|
Security
|
means
the security granted by the Borrower in favour of the Lender in connection
with this Agreement;
|
Security
Account Bank
|
means
Malayan Banking Berhad or any other bank or financial institution approved
by the Lender in substitution thereof for the time being for maintaining
the Special Loan Account;
|
Security
Interest
|
means
any mortgage, charge, pledge, lien, right of set-off or other security
interest whatsoever or howsoever created or arising, other than liens and
rights of set off arising in the ordinary course of
business;
|
|
Shareholders
|
means
the persons for the time being holding shares in the Borrower and
registered as members of the Borrower in its register of members, and
includes their respective successors in title and
assigns;
|
Special
Loan Account
|
means
the account opened and maintained by the Borrower with the Security
Account Bank under account number *** pursuant to and in accordance with
the terms of the Deed of
Assignment;
|
|
Tranche
A
|
means
that part of the Facility made available or to be made available to the
Borrower pursuant to Clause 2.2(a);
|
|
Tranche
B
|
means
that part of the Facility made available or to be made available to the
Borrower pursuant to Clause 2.2(b).
|
|
1.2
|
(a)
|
Unless
the context otherwise requires, any reference in this Agreement to
-
|
|
(i)
|
an
“agreement” also includes a concession, contract, deed, franchise licence,
treaty or undertaking (in each case written) and a reference in this
Agreement to any contract or agreement shall be a reference to such
contract or agreement as modified or amended from time to time save that
where a word or expression has been defined in Clause 1.2 by reference to
the meaning ascribed thereto by such contract or agreement, the reference
in Clause 1.2 to such contract or agreement shall be a reference to such
contract or agreement as modified or amended as at the date of this
Agreement;
|
|
(ii)
|
the
“assets” of the Borrower shall be construed as a reference to the whole or
any part of its business undertaking, property assets, revenue and rights
(including any right to receive
revenues);
|
|
(iii)
|
a
“guarantee” also includes any other obligation (howsoever called) of any
person to pay, purchase, provide funds (whether by way of the advance of
money, the purchase of or subscription for shares or other securities, the
purchase of assets or services, or
|
|
otherwise)
for the payment of indemnity against the consequences of default in the
payment of, or otherwise be responsible for, any indebtedness of any other
person;
|
|
(iv)
|
“indebtedness”
includes any obligation (whether present or future, actual or contingent,
secured or unsecured, as principal or surety or otherwise) for the payment
or repayment of money;
|
|
(v)
|
a
“law” includes common or customary law, any constitution, decree,
judgment, legislation, order, ordinance, regulation, statute, treaty or
otherwise legislative measure in any jurisdiction or any present or future
directive, regulation, request or requirement (in each case, whether or
not having the force of law but, if not having the force of law, the
compliance with which is in accordance with the general practice of
persons to whom the directive, regulation, request or requirement is
addressed);
|
|
(vi)
|
a
“person” includes an individual, partnership, corporation, company, trust,
unincorporated association, joint venture, governmental authority or other
entity of whatever nature;
|
|
(vii)
|
“taxes”
includes all present and future taxes, levies, imposts, duties, fees or
charges of whatever nature together with interest thereon and penalties in
respect thereof and “taxation” shall be construed
accordingly.
|
|
(b)
|
If
the Drawdown Date or the Repayment Date falls on a day which is not a
Business Day, the Drawdown Date, the Interest Payment Date or the
Repayment Date shall be the Business Day immediately
following.
|
|
(c)
|
Reference
to the masculine gender includes the feminine and vice
versa.
|
|
(d)
|
Reference
to the singular includes the plural and vice
versa.
|
|
(e)
|
References
to any statute shall be a reference to that statute as amended or
re-enacted from time to time.
|
|
(f)
|
References
to Clauses and Schedules shall unless otherwise expressly provided be
references to Clauses and Schedules to this
Agreement.
|
|
(g)
|
Headings
are for ease of reference only.
|
2.1
|
The
maximum aggregate principal amount of the Facility is Ringgit One Billion
(RM1,000,000,000.00) only and the Lender shall make available the Facility
to the Borrower upon the terms and conditions of this
Agreement.
|
2.2
|
The
Facility shall be made available in two (2) tranches in the following
amount:
|
(a)
|
Tranche
A which shall not exceed Ringgit *** (RM***) only;
and
|
(b)
|
Tranche
B which shall not exceed Ringgit *** (RM***)
only.
|
2.3
|
The
tenure of the Facility is for a period not exceeding ninety eight (98)
months from the first Drawdown Date to the Final Repayment
Date.
|
2.4
|
The
Facility is granted hereunder only to finance the cost of the
Project which is set out in details in Schedule
1.
|
3.
|
CONDITIONS
PRECEDENT
|
3.1
|
The
Facility shall become available to the Borrower after the Lender shall
have received in such form and substance satisfactory to it
-
|
(a)
|
the
duly executed and stamped copy of this Agreement, the Debenture and the
Deed of Assignment;
|
(b)
|
a
certificate signed by two (2) authorised signatories and the Company
Secretary of the Borrower in the form or substantially in the form set out
in Schedule 2 together with certified true copies of the following
documents:
|
|
(i)
|
a
copy of the appropriate resolution of the board of directors of the
Borrower authorising -
|
|
(aa)
|
the
acceptance and utilization of the Facility on the terms and conditions of
this Agreement;
|
(bb)
|
the
execution of this Agreement, the Debenture and the Deed of Assignment
under the common seal of the
Borrower;
|
(cc)
|
a
person or persons to sign and give all requests, notices, certificates and
other documents to be given by the Borrower under or in connection with
the Facility or this Agreement and generally to act for and on behalf of
the Borrower in respect of the transaction and matters thereunder or
relating thereto or in connection therewith;
and
|
|
(ii)
|
a
copy each of the certificate of incorporation, the Memorandum and Articles
of Association, the latest Form 24 and the Form 49 of the
Borrower;
|
|
(c)
|
a
copy of the acknowledgment of notice of assignment in respect of the Deed
of Assignment duly acknowledged from the Security Account
Bank;
|
|
(d)
|
a
written confirmation by the Borrower’s solicitors confirming the
following:-
|
|
(i)
|
that
the Special Loan Account has been opened and the mandates are in
accordance with the terms of the relevant resolution of the board of
directors;
|
|
(ii)
|
that
Form 34 (as prescribed under the Companies Act 1965 (the “Act”)
in respect of the Debenture and the Deed of Assignment shall have been
duly executed by the Borrower and shall have been lodged with
the Registrar of Companies for registration pursuant to Section
108 of the Act;
|
|
(iii)
|
that
the notice of assignment in respect of the Deed of Assignment shall have
been served on the Security Account Bank and the acknowledgement thereof
shall have been obtained; and
|
|
(iv)
|
that
the power of attorney given pursuant to the Debenture and the Deed of
Assignment has been lodged for registration with the High Court
of the States of Malaya;
|
(e)
|
the
result of the search carried out by the Borrower at the Jabatan Insolvensi
Malaysia which confirms that the Borrower has not been wound
up.
|
(f)
|
A
letter of comfort from the
Shareholders.
|
4.1
|
Subject
to Clause 5, The Lender shall disburse the Tranche A in *** installments
in the following manner:
|
Disbursement
|
Drawdown
Date
|
Amount
|
***
|
***
|
***
|
Tranche
A Total
|
RM***
|
4.2
|
Subject
to Clause 5, The Lender shall disburse the Tranche B in *** installments
in the following manner:
|
Disbursement
|
Drawdown
Date
|
Amount
|
***
|
***
|
***
|
Tranche
B Total
|
RM***
|
5.
|
PROCEDURE
FOR DRAWDOWN
|
5.1
|
For
the purpose of the drawdown of the Facility, the Borrower shall fulfill
the following conditions:
|
(a)
|
the
Borrower has given at least seven (7) days prior notice in writing to the
Lender in the form or substantially in the form as set out in Schedule 3
specifying the proposed amount of the Drawdown and the proposed Drawdown
Date provided that
|
(i)
|
in
respect of the first Drawdown under Tranche A, notice may be given
concurrent with the execution of this
Agreement.
|
(ii)
|
in
respect of Tranche B, the Borrower will, if it intends to utilize Tranche
B, give the Lender three (3) months prior notice of such intended
utilization. If by the date three (3) months prior to the date for
disbursement of the first Drawdown of Tranche B, the Borrower has not
given notice of its intended utilization Tranche B shall be automatically
cancelled.
|
|
(b)
|
the
conditions precedent set out in Clause 3 have been duly
fulfilled;
|
|
(c)
|
the
proposed Drawdown is made on a Business Day during the Availability
Period; and
|
|
(d)
|
the
Facility has not been suspended or cancelled in accordance with Clause
12.1.
|
5.2
|
Subject
to the terms and conditions of this Agreement, all Drawdowns shall be
disbursed to the Borrower by crediting such amount into the Special Loan
Account.
|
5.3
|
Within
three (3) Business Days after the Drawdown Date, the Borrower shall
deliver to the Lender a written acknowledgment certifying the receipt of
the amount of that Drawdown, duly signed by the Borrower, in the form set
out in Schedule 4.
|
5.4
|
Subject
to the Deed of Assignment, for so long as any amounts are payable by the
Borrower to the Lender under this Agreement, the Borrower may make
withdrawal from the Special Loan Account for the purpose of the
Project at any time provided that the Borrower has submitted to MIDA a
Loan Withdrawal Notice (in the form as set out in Schedule 8) together
with a certificate of payment (in the form as set out in Schedule 7) for
withdrawal from the Special Loan Account together with the cheque(s) for
such withdrawal signed by the
|
Borrower’s signatory. The Lender shall, within seven (7) days of the receipt of the certificate of payment duly certified by MIDA, sign and return the cheque(s) to the Borrower, for the withdrawal of funds from the Special Loan Account provided that in any event the Lender shall, within fourteen (14) days of the delivery by the Borrower of the certificate of payment to MIDA, sign and return the cheque(s) to the Borrower, for the withdrawal of funds from the Special Loan Account. |
6.1
|
Interest
payable:
|
(a)
|
in
respect of the aggregate amount of all Drawdowns made in respect of
Tranche A, for the period from the first Drawdown Date on Tranche A up to
the First Repayment Date, shall be the fixed rate of *** per centum (***%)
per annum and shall be calculated on the basis of a year of 365 days and
the actual number of days elapsed;
and
|
|
(b)
|
in
respect of the aggregate amount of all Drawdowns made in respect of
Tranche B, for the period from the first Drawdown Date on Trahche B up to
the First Repayment Date, shall be the fixed rate of *** per centum (***%)
per annum and shall be calculated on the basis of a year of 365 days and
the actual number of days elapsed.
|
|
(a)
|
in
respect of the principal amounts remaining outstanding from time to time
in respect of Tranche A, be at the fixed rate of *** per centum (***%) per
annum and shall be calculated on the basis of a year of 365 days and the
actual number of days elapsed; and
|
|
(b)
|
in
respect of the principal amounts remaining outstanding from time to time
in respect of Tranche B, be at the fixed rate of *** per centum (***%) per
annum and shall be calculated on the basis of a year of 365 days and the
actual number of days elapsed.
|
6.3
|
All
interest accrued under Clause 6.1 shall be capitalized on the First
Repayment Date and the aggregate of such amount shall be paid in
full
|
6.4
|
All
interest accrued under Clause 6.2 shall be paid in arrears on the
successive Repayment Dates following the First Repayment
Date.
|
6.5
|
Without
in any way limiting or restricting the rights of the Lender specified in
this Agreement, if the Borrower shall default in the payment of any sum or
sums becoming due under this Agreement upon the due date or dates for the
payment of such sum or sums the Borrower shall, as agreed damages, pay to
the Lender late payment charges on such sum or sums at a rate of interest
of *** during the period commencing on the date such sum or sums become
due for payment until the date or dates of actual payment. Further, if the
Borrower shall fail to pay such interest as abovementioned within seven
(7) days after any demand by the Lender such interest shall be compounded
monthly and shall carry further interest at the rate specified in this
Clause 6.3.
|
7.1
|
Subject
to the provisions of this Agreement, the Borrower hereby agrees that it
shall pay to the account of the Lender
–
|
(a)
|
the
scheduled repayment amounts as specified in Schedule 5A towards payment of
the Outstanding Amount A; and
|
|
(b)
|
the
scheduled repayment amounts as specified in Schedule 5B towards payment of
the Outstanding Amount B.
|
7.2
|
The
Borrower shall ensure that it shall pay and/or cause to be paid into the
Special Loan Account, the relevant scheduled repayment amounts referred to
in Clause 7.1
|
7.3
|
In
respect of the sixth scheduled Repayment Date, not less than one hundred
and twenty days (120) days prior to the sixth scheduled Repayment Date,
the Borrow shall provide the Lender with its auditors certification on the
balance of the Outstanding Amount (“Certified Balance”), within thirty
(30) days from the date of receipt of the said auditors’ certification
(and in the absence of manifest error, such confirmation given by the
Lender shall be conclusive and binding on the
parties).
|
8.1
|
Subject
to Clause 8.3, the Borrower may at its own discretion on any Business Day,
prepay the Outstanding Amount in whole or in part to the account of the
Lender, provided always that the Borrower has given the Lender not less
than thirty (30) days notice stating the amount to be prepaid in the form
or substantially in the form set out in Schedule 6
hereof.
|
8.2
|
Any
amount prepaid shall not be available for redrawing at any time
thereafter.
|
8.3
|
In
the event that the Borrower has prepaid any part of the Outstanding
Amount, the Lender shall prepare and submit to the Borrower a revised
repayment schedule to replace the schedules referred to in Clause 7.1
taking into account the amount that has been prepaid by the Borrower. The
revised repayment schedule shall form part of this Agreement and shall not
be amended without the prior written approval of the Lender being
obtained.
|
9.1
|
As
security for the due and punctual payment of the Outstanding Amount, all
interest accrued thereon and all other amounts whatsoever payable by the
Borrower to the Lender hereunder, the Borrower shall execute in favour of
the Lender the Debenture and the Deed of
Assignment.
|
10.1
|
The
Borrower represents and warrants to the Lender as
follows:
|
|
(a)
|
the
Borrower is a company duly incorporated under the laws of Malaysia and has
the power and authority to own its assets and to carry on its business as
it is now being carried on;
|
|
(b)
|
the
Articles of Association of the Borrower incorporate provisions which
authorise, and all necessary corporate action has been taken to authorise,
and all authorisations of any governmental or other authority have been
duly and unconditionally obtained and are in full force and effect which
are required to authorise the Borrower to own its assets, carry
|
on its business as they are now being conducted, and sign and deliver, and perform the transactions contemplated in this Agreement; |
|
(c)
|
the
execution, delivery and performance of this Agreement and the transactions
contemplated hereunder do not contravene any applicable law, regulation,
decree, order, permit or contractual or other restriction binding on the
Borrower or its assets;
|
|
(d)
|
no
litigation, arbitration or administration proceedings of any nature before
any court, arbiter or governmental authority is presently pending nor to
the knowledge of the Borrower threatened against the Borrower or its
assets which may have a Material Adverse
Effect;
|
|
(e)
|
the
Borrower is not in default in the performance of any of its other
obligations under any other contract or arrangement to which the Borrower
is a party, which may have a Material Adverse
Effect;
|
|
(f)
|
no
event has occurred which constitutes, or which with the giving of notice
and/or the lapse of time and/or a relevant determination would constitute,
a contravention of, or default under, any agreement or instrument by which
the Borrower or any of its assets are bound or affected, being a
contravention or default which may have a Material Adverse
Effect;
|
|
(g)
|
none
of the assets of the Borrower is subject to any encumbrances other than
the Security Interests created prior to the date of this Agreement and
save as aforesaid, the Borrower is not a party to, nor is it or any of its
assets bound by any order, agreement or instrument under which they, or in
certain events may be, required to create or permit to exist any
encumbrances;
|
|
(h)
|
the
Borrower has fully disclosed in writing to the Lender all relevant facts
relating to the Borrower that it would reasonably and normally
consider as material for disclosure to the Lender;
and
|
|
(i)
|
the
authorised paid-up capital of the Borrower is Ringgit Five Million
(5,000,000.00) only and that the paid-up capital of the Borrower at the
execution of this Agreement is Ringgit
Seven
|
10.2
|
The
Borrower further represents and warrants to the Lender that the
representations and warranties set out in Clause 10.1 shall remain true
and correct in all material respects throughout the duration of the
Facility.
|
|
For
so long as any amounts are payable by the Borrower hereunder to the
account of the Lender, the Borrower covenants and agrees that it
shall:
|
|
duly
perform its obligations under this Agreement and undertake the Project
with due diligence and efficiency;
|
|
(A)
|
unless
the Borrower has given notice to the Lender thirty (30) days prior written
notice:
|
|
(i)
|
not
add to, delete, vary or amend its Memorandum or Articles of Association in
any manner which would be inconsistent with the provisions of this
Agreement, the Debenture and the Deed of
Assignment;
|
|
(ii)
|
save
for the agreement or arrangement which has been disclosed to and
acknowledged by the Lender prior to this Agreement, not to enter into any
partnership, profit-sharing or royalty agreement or other similar
arrangement whereby the Borrower's income or profits are, or might be,
diluted or shared with any other person or, save as aforesaid, enter into
any management contract or similar arrangement whereby the Borrower's
business or operations are managed by any other
person;
|
|
(iii)
|
not
carry on any business other than its undertaking and enjoyment of
the Project;
|
|
(iv)
|
not
incur, assume, guarantee or permit to exist any indebtedness other than
indebtedness under this Agreement and or any other indebtedness arising in
the ordinary course of its
business; and
|
|
(v)
|
not
to declare, pay or make any dividend or other distribution of a capital
nature, whether in cash or otherwise, before it makes any dividend or
other distributions of a capital nature to the directors, Shareholders
and/or related or holding companies of the
Borrower;.
|
|
(B)
|
unless
the Lender otherwise approves and the approval of which shall not be
unreasonably withheld:
|
|
(i)
|
not
to create or permit to exist any Security Interest over the Security other
than:
|
|
(aa)
|
liens
and rights of set-off arising in the ordinary course of its business (such
as intercompany advances);
|
|
(bb)
|
the
Security Interest created or to be created under this Agreement;
and
|
|
(cc)
|
any
other Security Interest, the creation of which has been approved by and/or
disclosed to the Lender;
|
|
(ii)
|
not
to make any loans to any person including the directors, Shareholders
and/or related or holding companies of the Borrower, other
than:-
|
|
(aa)
|
loans
or advances in respect of any credit or accommodation to the Borrower’s
trade and sundry creditors,
|
|
(bb)
|
advances
to the Borrower’s contractors in carrying out any works for the Borrower
in its ordinary course of business;
and
|
|
(cc)
|
the
loans given to the employees of the Borrower in the course of their
employment;
|
|
(iii)
|
not
reduce its authorised or issued and paid-up share
capital.
|
|
(C)
|
not
pay or otherwise satisfy any indebtedness to its Shareholders or any part
thereof or any interest thereon and shall keep such indebtedness
subordinated to all rights, claims and actions which the Lender may now or
hereafter have against the Borrower in respect of all amount secured
hereunder;
|
|
(i)
|
as
soon as practicable but not later than thirty (30) days after the
Borrower's annual general meeting at which the relevant accounts are
approved and in any event not later than six (6) months after the end of
each financial year of the Borrower, a copy of the annual audited
financial statements of the Borrower consisting of a balance sheet and a
profit and loss account drawn up in accordance with the provisions of the
Act (as the same may from time to time be amended) and
certified by a firm of independent certified public accountant to give a
true and fair view of the state of affairs of the Borrower as at the end
of that financial year and of its results for that financial
year;
|
|
(ii)
|
within
ninety (90) days after the end of the first half of each financial year of
the Borrower, a copy of its audited or unaudited semi-annual financial
statements similarly prepared and signed by an authorised signatory of the
Borrower;
|
|
(iii)
|
in
respect of each of the financial statements referred to in sub-paragraphs
(i) and (ii), a certificate signed by an authorised signatory of the
Borrower stating that, to the best of his knowledge and belief, such
financial statements are correct and that the authorised signatory has
made or caused to be made under his supervision a review of the financial
position of the Borrower for the purposes of such certificate and that
such review has not
|
|
disclosed
the existence of, and the authorised signatory does not have knowledge of,
any Event of Default or any default under any other agreements with its
lenders, investors and contractors, and if any such event exists,
specifying the nature and period of existence thereof and what action the
Borrower has taken or is taking or proposes to take with respect thereof;
and
|
|
(iv)
|
such
other information on the financial position of the Borrower as the Lender
may from time to time request;
|
|
(e)
|
Particulars
of Business
|
|
keep
full and proper accounts of the carrying on of its business and affairs
and cause the same to be properly posted up to date and prepare or cause
to be prepared all financial statements to be delivered by it under this
Agreement;
|
|
(f)
|
Event
of Default
|
|
notify
the Lender of the occurrence of any Event of Default or of any default
under any other agreements or of any other occurrence of which it becomes
aware which in its reasonable opinion might have a Material Adverse
Effect;
|
|
(g)
|
Notification
of Change
|
|
notify
the Lender of any change in the persons authorised to sign notice of
Drawdown and any certificates or other documents required in connection
with this Agreement on behalf of the
Borrower;
|
|
(h)
|
Inspection
|
|
at
all times allow the Lender or the authorised representative of the Lender
to inspect all records of the Borrower pertaining to the Project and, so
far as the Borrower is reasonably able to procure access for the Lender or
its authorised representative,
|
|
all
records pertaining to the Project kept elsewhere or by any other
authorities or persons so far as such records relate to or affect the
Borrower’s properties, assets and business and give to the Lender or its
authorised representative such written authorities as may be required to
enable the Lender or its authorised representative to inspect such
records;
|
|
(i)
|
Payment
of Outgoings
|
|
punctually
pay all rents, rates, taxes and all outgoings payable in respect of its
properties and/or the premises at which it carries on business and apply
for all necessary licences and comply with all regulations relating to the
carrying on of its business at such
premises;
|
|
(j)
|
Authorisations
|
|
not
to do anything to jeopardise the continued maintenance in full force and
effect of all authorisations, licences, approvals and consents referred to
in this Agreement;
|
|
(k)
|
Dissolution
|
|
(a)
|
the
Borrower fails to pay any amount due hereunder on the due
date;
|
|
(b)
|
the
Borrower defaults in the performance of any of its obligations under this
Agreement (other than an obligation to pay any amount due to the Lender on
the due date or on demand, if so
payable);
|
|
(c)
|
any
litigation, arbitration or administration proceedings of or before any
court, arbitration or governmental authority shall be instituted against
the Borrower or its assets and such proceedings will have a Material
Adverse Effect;
|
|
(d)
|
any
indebtedness of the Borrower is not paid when due and the failure of which
may have a Material Adverse Effect on the ability of the Borrower to
perform its material obligations under this Agreement or any indebtedness
of the Borrower is declared to be or otherwise becomes due and payable
prior to its stated maturity or any security for any such indebtedness
becomes enforceable;
|
|
(e)
|
any
representation, warranty or statement made by the Borrower under this
Agreement is not complied with in any material respect or shall be found
to have been incorrect in any material respect when made or if made have
been incorrect on that later date and such non-compliance or incorrectness
materially and adversely affects the ability of the Borrower to perform
its material obligations hereunder;
|
|
(f)
|
a
distress, attachment, execution or other legal process which has a
Material Adverse Effect on the ability of the Borrower to perform its
obligations under this Agreement is levied, enforced or sued out on or
against the assets of the Borrower and such distress, attachment,
execution or other legal process is not disputed or satisfied by the
Borrower;
|
|
(g)
|
any
present or future security interest on or over the assets of the Borrower
becomes enforceable and would, in the opinion of the Lender, have a
Material Adverse Effect;
|
|
(h)
|
any
step is taken for the winding up, dissolution or liquidation, as the case
may be, of the Borrower (except for the purpose of and followed by a
reconstruction, amalgamation or
|
|
reorganisation
on terms approved by the Lender before the step is taken) or for the
appointment of a liquidator, receiver, judicial manager, trustee,
administrator, agent or similar officer of the Borrower over any part of
the assets of the Borrower or a petition for winding up, dissolution or
liquidation, as the case may be, is presented against the
Borrower;
|
|
(i)
|
any event or events has or have occurred
or a situation exists which in the reasonable opinion of the Lender, has
or have Material Adverse Effect,
|
|
then
and in any such event and at any time thereafter if such event is
continuing, the Lender may by written notice to the Borrower require the
Borrower to remedy such event or take steps to dispute or discharge any
relevant proceedings or process against it and, subject to the suspension
of the Facility during the period of remedy, dispute or discharge, if such
event is not remedied within a period of thirty (30) Business Days or any
relevant proceedings or process are not disputed or discharged by the
Borrower within thirty (30) Business Days or within such period prescribed
by law declare that an Event of Default has occurred and simultaneously in
the same notice:
|
|
(i)
|
declare
the Facility to be cancelled and no further Drawdown shall be
made;
|
|
(ii)
|
declare
the Indebtedness to be immediately due and payable under this Agreement;
and
|
|
(iii)
|
declare
the security created by the Debenture and Deed of Assignment shall
immediately become enforceable.
|
12.3
|
The
Borrower shall fully indemnify and reimburse the Lender from and against
any claims, actions, proceedings, demands, reasonable cost and expense,
loss, damage or liability (as to the amount of which the Lender shall
certify, and in the absence of manifest error, such certification shall be
conclusive) which the Lender has incurred or suffered as a
consequence of the occurrence of any Event of Default, or any other
default by the Borrower in the performance of any of its obligations under
this Agreement.
|
12.4
|
Subject
to the provisions of this Agreement , it is hereby expressly agreed that
upon default or breach by the Borrower of any term, covenant, stipulation
and/or obligation herein provided and on the part of the Borrower to be
observed and performed, the Lender shall thereafter have the right to
exercise all or any of the remedies
available
|
|
whether
by this Agreement or by statute or otherwise to recover the amount due and
owing to the Lender without any notice to or concurrence on the part of
the Borrower.
|
12.5
|
In
the event the moneys received by the Lender under Clause 12.4 shall be
insufficient to discharge all amounts owing under this Agreement in full,
the Borrower shall remain liable to pay the shortfall to the Lender at
default interest rate as specified in Clause 6.3
hereof.
|
15.
|
ASSIGNMENT
AND TRANSFERS
|
15.1
|
This
Agreement shall be binding upon and inure to the benefit of the Parties
hereto and their successors-in-title and permitted
assigns.
|
15.2
|
The
Borrower shall not assign or transfer all or part of its rights or
obligations under this Agreement without obtaining the prior written
consent of the Lender.
|
15.3
|
The
Lender may, at its own costs and expenses assign, novate or transfer its
rights, liabilities or obligations under this Agreement or any part
thereof in accordance with the terms hereof with the prior consent of the
Borrower which consent shall not be unreasonably
withheld.
|
16.
|
CHANGE
IN LAW
|
16.1
|
Subject
to Clause 16.2, where the introduction, imposition or variation of any law
or any change in the interpretation or application thereof makes it
unlawful or impractical without breaching such law for the Lender to
maintain or give effect to its obligations hereunder, the Facility shall
be cancelled and the Borrower shall thereafter prepay the Lender the
Outstanding Amount.
|
16.2
|
The
Facility shall not be cancelled pursuant to Clause 16.1 above if the
parties amend the terms and conditions of this Agreement by mutual consent
and the parties agree that they will use all reasonable efforts to do
so.
|
17.
|
INDEPENDENT
EXERCISE OF RIGHTS
|
|
The
Lender may exercise or waive its rights, as the case may be, under this
Agreement independent of and without affecting its rights under any other
agreements.
|
18.
|
RIGHTS
CUMULATIVE, WAIVERS
|
|
The
rights of the Lender under this Agreement are cumulative, may be exercised
as often as the Lender considers appropriate and are in addition to the
Lender’s rights under any applicable law. The rights of the
Lender in relation to the Facility (whether arising under this Agreement
or under any applicable law) shall not be capable of being waived or
varied otherwise than by an express waiver or variation in writing and in
particular any failure to exercise or any delay
in
|
|
exercising
any of such rights shall not operate as a waiver or variation of that or
any other such right any defective or partial exercise of any of such
rights shall not preclude any other or further exercise of that or any
other such right and no act or course of conduct or negotiation on the
Lender’s part or on its behalf shall in any way preclude it from
exercising any such right or constitute a suspension or any variation of
any such right.
|
19.
|
TIME
|
|
Time
shall be of the essence in this
Agreement.
|
20.
|
AMENDMENT
|
|
The
provisions and terms of this Agreement may at any time and from time to
time be varied or amended by mutual consent of the Parties
hereto. No amendment, variation, modification of any provision
of this Agreement shall be effective unless made in writing by way of a
supplementary agreement specifically referring to this Agreement signed by
the duly authorized representatives of the
Parties.
|
|
21.
|
NOTICES
|
|
Each
notice, request, demand, approval, certificate or other communication to
be made, served or given under these presents shall be in writing and
shall be given, made or served personally or by post or facsimile to the
following addresses or facsimile
numbers:
|
Lender
:
|
Ketua
Setiausaha Perbendaharaan
|
|
Bahagian
Pengurusan Pinjaman, Pasaran Kewangan and
Aktuari
|
|
Aras
5, Blok Tengah, Perbendaharaan
Malaysia
|
Facsimile
No:
|
03-8882
3578
|
|
Attn:
|
Managing
Director/ Expansions Director
|
|
Fascimile
No : -
|
|
or
at such other addresses or facsimile number as the Party may have notified
to the other Party hereto in
writing.
|
|
Any
notice or other communication given by any Party to this Agreement shall
be deemed to have been received:
|
|
(a)
|
if
sent by hand, on the date of
delivery;
|
|
(b)
|
if
sent by registered post, three (3) Business Days after posting, postage
prepaid; and
|
|
(c)
|
if
by facsimile, on the sender’s receipt of a transmission report which
purports to confirm that the addressee has received such facsimile,
provided that if the facsimile is sent on a date which is not a Business
Day, such facsimile shall be deemed to have been received by the addressee
on a day which falls on the next succeeding Business
Day.
|
|
If
any of the provision of this Agreement becomes invalid, illegal or
unenforceable in any respect under law, the validity, legality and
enforceability of the remaining provisions shall not in any way be
affected or impaired.
|
|
This
Agreement shall be governed by and construed in accordance with the laws
of Malaysia and the Parties hereto hereby submit to the jurisdiction of
the courts of Malaysia in all matters connected
herewith.
|
SIGNED
for and on behalf of
THE
GOVERNMENT OF MALAYSIA
in
the presence of :
/s/ Wong Wen
Min
Wong Wen Min
I/C
(571004-13-5404)
|
)
)
)
)
)
)
|
/s/
DATUK LATIFAH BT. DATUK ABU MANSOR
DATUK
LATIFAH BT. DATUK ABU MANSOR
Deputy
Secretary General (Policy)
Ministry
of Finance Malaysia
|
The
Common Seal of
SUNPOWER
SDN BHD
(COMPANY
NO: 824246-W)
was
hereunto affixed
in
the presence of :
/s/
Robert David Vinje
…………………………………………
Director
Name: Robert
David Vinje
NRIC/Passport
No: 076374772presence
of :
|
)
)
)
)
)
)
)
)
)
|
/s/
Lim Poh Seng
……………………………………..
Secretary
Name: Lim Poh
Seng
NRIC/Passport No: 710228-10-5519
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FINANCED
BY LOAN FROM THE GOVERNMENT OF MALAYSIA
|
FINANCED
BY THE BORROWER
|
TOTAL
|
|
ASSETS
***
|
***
|
***
|
***
|
LAND
|
***
|
***
|
|
PROCESSING
EQUIPTMENT
***
|
***
|
***
|
***
|
OTHER
ASSETS
***
|
***
|
***
|
***
|
WORKING
CAPITAL
***
|
***
|
***
|
***
|
TOTAL
|
1,000,000,000
|
***
|
***
|
|
[Clause
3.1(b)]
|
|
FORM
OF CERTIFICATE
|
|
To : THE
GOVERNMENT OF
MALAYSIA
|
|
Date:
|
|
RE
|
:
|
TERM
LOAN FACILITY AMOUNTING TO RM (“FACILITY”) GRANTED TO SUNPOWER MALAYSIA
MANUFACTURING SDN. BHD.
|
(i)
|
attached
hereto marked “A” is a true and certified copy of a resolution *[duly
passed at a meeting of the Board of Directors of the Borrower duly
convened and held on [ ]] *[in writing dated []
pursuant to the Articles of Association] (a) authorizing the acceptance
and utilization of the Facility by the Borrower under the Facility
Agreement, (b) authorizing the due execution of the Facility Agreement and
the Debenture under the common seal of the Borrower, (c)
authorizing a person or persons to sign and give all requests, notices,
certificates and other documents to be given by the Borrower
under or in connection with the Facility or the Facility
Agreement and generally to act for and on behalf of the Borrower in
respect of the transaction and matters thereunder or relating thereto or
in connection therewith and; (d) the opening of the Special Loan
Account;
|
(ii)
|
attached
hereto, marked “B” are true and certified copies of the certificate of
incorporation, the Memorandum and Articles of Association, the latest
Forms 24 and 49 of the Borrower;
|
(iii)
|
as
from the date when the Borrower first applied for the Facility there has
been no material alterations or changes in the constitution condition
business or other affairs of the Borrower (save and except for any such
alterations or changes which have been disclosed by the Borrower to the
Lender) which could or might adversely affect the decision of the Lender
to grant the Facility;
and
|
(iv)
|
the
following signatures are the true signatures of the [Directors] any two of
whom (or any one of the Directors if the document is to be signed under
hand) have been authorised to witness the affixing of the common seal of
the Borrower to the Facility Agreement and any one of the
|
Directors has been authorized to give notices and communications under or in connection with the Facility Agreement and further to operate and utilize that Facility. |
|
Date:
|
|
To : THE
GOVERNMENT OF
MALAYSIA
|
|
Dear
Sirs,
|
|
RE
|
:
|
TERM
LOAN AMOUNTING TO RM1,000,000,000 GRANTED TO SUNPOWER MALAYSIA
MANUFACTURING SDN. BHD.
|
(a)
|
give
you notice that we wish to make a Drawdown under the Facility
for the amount of [] on [ ###
|
];
|
(c)
|
confirm
that:
|
|
(i)
|
the
conditions precedent set out in Clause 3.1 of the Facility Agreement are
satisfied as at the date hereof and we know of no reason why it should not
be satisfied as at the date referred to in (a)
above;
|
|
(ii)
|
the
representations and warranties contained in Clause 10 of the Facility
Agreement if repeated at the date of this notice with reference to the
facts and circumstances subsisting at the date of this notice would be
true and accurate in all respects;
and
|
|
(iii)
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no
Event of Default mentioned in Clause 12.1 of the Facility Agreement has
occurred which constitutes, with the lapse of time
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and or the giving of notice and/or a relevant determination would constitute a default. |
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Yours
faithfully,
|
|
for
and on behalf of
|
|
SUNPOWER
MALAYSIA MANUFACTURING SDN. BHD.
|
|
……………………………..
|
|
[name]
|
|
Authorised
Signatory
|
|
RE
|
:
|
TERM
LOAN AMOUNTING TO RM1,000,000,000 GRANTED TO SUNPOWER MALAYSIA
MANUFACTURING SDN. BHD.
|
|
[Clause
7.1]
|
|
REPAYMENT
SCHEDULE
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Repayment
|
Principal
|
Accrued
|
|||
Installment
|
Date
|
Amount
|
Interest
|
Interest
|
Total
|
***
|
***
|
***
|
***
|
***
|
***
|
Total
|
1,000,000,000
|
***
|
***
|
***
|
Repayment
|
Principal
|
Principal
|
|||
Installment
|
Date
|
Amount
|
Interest
|
Interest
|
Total
|
***
|
***
|
***
|
***
|
***
|
***
|
Total
|
***
|
***
|
***
|
***
|
|
RE
|
:
|
TERM
LOAN AMOUNTING TO RM1,000,000,000 GRANTED TO SUNPOWER MALAYSIA
MANUFACTURING SDN. BHD.
|
|
RE
|
:
|
TERM
LOAN AMOUNTING TO RM1,000,000,000 GRANTED TO SUNPOWER MALAYSIA
MANUFACTURING SDN. BHD.
|
(i)
|
Payment
made in respect of this Project since……=
RM
|
(ii)
|
Amount
requested through this
notice =
RM
|
(iii)
|
Special
Loan Account balance (after
withdrawal
|
CONFIDENTIAL
TREATMENT REQUESTED
--
CONFIDENTIAL
PORTIONS OF THIS DOCUMENT HAVE BEEN REDACTED AND HAVE BEEN SEPARATELY
FILED WITH THE SECURITIES AND EXCHANGE
COMMISSION
|
THIS DEBENTURE is made
on the
|
18 DEC
2008____
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BETWEEN
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(1)
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GOVERNMENT OF MALAYSIA,
as lender (the “Lender”).
|
|
AND
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(2)
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SUNPOWER MALAYSIA MANUFACTURING
SDN. BHD., a company incorporated under the laws of Malaysia and
having its registered address at Level 41 – Suite B, Menara
Maxis, Kuala Lumpur City Centre, 50088 Kuala Lumpur as chargor
(the “Borrower”);
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(A)
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By
a facility agreement dated
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(the
“Facility
Agreement”) made between the Borrower and the Lender, the Lender
has agreed to make available to the Borrower certain credit facilities of
up to One Billion Ringgit Malaysia (RM1,000,000,000) (the “Facility”), upon the
terms and conditions set out
therein.
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(B)
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It
is a condition precedent to the Lender making the Facility available to
the Borrower that the Borrower executes this
Debenture.
|
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AND WITNESSES as
follows:
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1.
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INTERPRETATION
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1.1
|
Definitions. Terms
defined in the Facility Agreement shall, unless otherwise defined in this
Debenture, have the same meanings when used in this Debenture and in
addition:
|
|
“Receiver” means any
receiver, manager, receiver and manager or other similar officer appointed
by the Lender in respect of the security hereby
granted.
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(a)
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the
proceeds of sale of any part of that
asset;
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(b)
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all
rights under any licence, agreement for sale or agreement for lease in
respect of that asset; and
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(c)
|
all
rights, benefits, claims, contracts, warranties, covenants for title,
negotiable and non-negotiable instruments, guarantees, indemnities,
security, liens, reservation of proprietary rights, rights of tracing or
remedies in respect of that asset.
|
|
“Secured Indebtedness”
means all monies, obligations and liabilities now or at any time hereafter
due, owing or incurred to the Lender by the Borrower under the Facility
Agreement.
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1.2
|
Construction. In
this Debenture, unless the context requires
otherwise:
|
(a)
|
the
rules of interpretation contained in Clause 1.2 (Construction) of the
Facility Agreement shall apply to the construction of this
Debenture.
|
(b)
|
Clause
and Schedule headings are for ease of reference
only.
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(c)
|
the
security created by or pursuant to this Debenture, and the rights of the
Lender under this Debenture, shall be enforceable notwithstanding any
change in the constitution of the Lender or its absorption into, or
amalgamation with, any other person or the acquisition of all or any part
of its undertaking by any other
person.
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2.
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PAYMENT OF SECURED
INDEBTEDNESS
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3.
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GRANT OF
SECURITY
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3.1
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Fixed
Charges
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3.2
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Floating
Charge
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3.3
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Details
of Charged Property
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4.
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CRYSTALLISATION OF
FLOATING CHARGE
|
|
(b)
|
the
Lender reasonably considers that the relevant Charged Property may be in
jeopardy or in danger of being seized or sold pursuant to any form of
legal process; or
|
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(c)
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the
Lender reasonably considers that it is desirable to do so in order to
protect or preserve the security created by or pursuant to this Debenture
over the relevant Charged Property and/or its
priority.
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(i)
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the
Borrower takes any step to create any Security over any of the Charged
Property not subject to a fixed charge or takes any step to dispose of or
deal with any such Charged Property otherwise than in accordance with the
terms of this Debenture; or
|
(ii)
|
any
person takes any step to levy any expropriation, attachment,
sequestration, distress, execution or other legal process against any such
Charged Property,
|
(i)
|
a
resolution is passed or an order is made for the winding-up, dissolution
or re-organisation of the Borrower;
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(ii)
|
any
administrator is appointed in respect of the Borrower or an order is made
for the administration of the Borrower;
or
|
(iii)
|
any
meeting of the directors of the Borrower is convened for the purpose of
considering any resolution for the administration of, or the appointment
of an administrator in respect of, the Borrower,
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4.3
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De-crystallisation
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5.
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FURTHER
ASSURANCE
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(a)
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to
perfect or protect the security created (or intended to be created)
pursuant to this Debenture (including, without limitation, the execution
by the Borrower of a mortgage, charge or other document over all or any of
the assets constituting (or intended to constitute) Charged Property)
and/or to perfect or protect the priority of such
security;
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(b)
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to
facilitate the realisation of the Charged Property;
and/or
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(c)
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to
exercise the Collateral Rights.
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6.
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REPRESENTATIONS AND
WARRANTIES IN RELATION TO
CHARGED PROPERTY
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(a)
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It
is the absolute beneficial owner of, and has good and marketable title to,
the Equipment over which it purports to create security by or pursuant to
this Debenture.
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(b)
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It
has not agreed to create any Security over any of its Charged
Property.
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7.
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COVENANTS
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7.1
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Insurance
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7.2
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Maintenance
of Equipment
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8.
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ENFORCEMENT OF
SECURITY
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(a)
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enforce
all or any part of that security (at the times, in the manner and on the
terms it thinks fit); and
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(b)
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take
possession of and hold or dispose of all or any part of the Charged
Property.
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(a)
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Any
time after the security created by or pursuant to this Debenture has
become enforceable, the Lender or any Receiver or Delegate
may:
|
(i)
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redeem
any prior Security over all or any part of the Charged
Property;
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(ii)
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procure
the transfer of any such Security to itself;
and/or
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(b)
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The
Borrower shall pay to the Lender on demand all principal monies, interest,
costs, charges and expenses of and incidental to any such redemption
and/or transfer.
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9.
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APPOINTMENT OF
RECEIVER
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(a)
|
At
any time after the security created by or pursuant to this Debenture has
become enforceable or if any corporate action, legal proceedings or other
procedure or step is taken in relation to the administration of, or the
appointment of an administrator in respect of, the Borrower or if
requested to do so by the Borrower, the Lender may by deed or otherwise
(acting through an authorised officer of the Lender), without prior notice
to the Borrower:
|
(i)
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appoint
one or more persons to be a Receiver in respect of the Charged
Property;
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(ii)
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remove
(so far as it is lawfully able) any Receiver so appointed;
and
|
(iii)
|
appoint
another person (or persons) as an additional or replacement Receiver (or
Receivers).
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(b)
|
Any
Receiver may be appointed in respect of the whole or any part of the
Charged Property specified in the instrument appointing him and different
Receivers may be appointed in respect of different parts of the Charged
Property. If a Receiver is appointed in respect of a part of the Charged
Property, the powers and rights conferred on a Receiver as set out in
Schedule 2 (Powers of
Receiver) shall have effect as though every reference in that
Schedule to the Charged Property were a reference to the part of the
Charged Property specified in the instrument of appointment or to any part
of that Charged Property.
|
(a)
|
entitled
to act individually or together with any other person appointed or
substituted as Receiver (except to the extent that the Lender may specify
to the contrary in the instrument of
appointment);
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(b)
|
deemed
for all purposes to be the agent of the Borrower which shall be solely
responsible for his acts, defaults and liabilities and for the payment of
his remuneration and no Receiver shall at any time act as agent for the
Lender; and
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(c)
|
entitled
to remuneration for his services at a rate to be fixed by the Lender from
time to time (without being limited to the prescribed rate under the
Section 124 of the Bankruptcy Act
1967).
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9.4
|
Powers
of Receiver
|
(a)
|
all
the powers of an administrative receiver under the Bankrupcy Act 1967 and
the Bankrupcy Rules 1969 (whether or not the Receiver is an administrative
receiver);
|
(b)
|
all
the powers and rights of an absolute owner (including, without limitation,
all the powers set out in Schedule 1 (Powers of Receivers))
and the power to do or omit to do anything which the Borrower itself could
do or omit to do; and
|
(c)
|
the
power to do all things (including bringing or defending proceedings in the
name or on behalf of the Borrower) which seem to the Receiver to be
incidental or conducive to:
|
(i)
|
any
of the functions, powers, authorities or discretions conferred on or
vested in him;
|
(ii)
|
the
exercise of the Collateral Rights (including realisation of all or any
part of the Charged Property); or
|
(iii)
|
bringing
to his hands any assets of the Borrower forming part of, or which when got
in would be, Charged Property.
|
9.5
|
Relationship
with Lender
|
10.
|
DELEGATION BY THE
LENDER AND RECEIVER
|
10.1
|
Discretion
|
10.2
|
Delegation
|
11.
|
LIABILITY OF LENDER,
RECEIVER AND DELEGATE
|
11.1
|
Liability
of Lender, Receiver and Delegate
|
(a)
|
taking
any action permitted by this
Debenture;
|
(b)
|
taking
possession of or realising all or any part of the Charged
Property;
|
(c)
|
any
neglect, default or omission in connection with the Charged Property;
or
|
(d)
|
the
exercise, or the attempted or purported exercise, of any of the Collateral
Rights except in the case of gross negligence or willful default upon its
part.
|
11.2
|
No
Liability as Mortgagee in
Possession
|
12.
|
APPLICATION OF
MONIES
|
12.1
|
Order
of Application
|
(a)
|
in
or towards the satisfaction or reimbursement of all costs, charges and
expenses incurred, and all payments made, by any Receiver or Delegate, the
payment of his remuneration and the discharge of any liabilities incurred
by him in or incidental to the exercise of any of his powers in such order
as the Lender shall in its absolute discretion
decide;
|
(b)
|
in
or towards the payment of the Secured Indebtedness in such order as the
Lender shall in its absolute discretion decide;
and
|
(c)
|
in
payment of the surplus, if any, to the Borrower or other person or persons
entitled to it.
|
12.2
|
Surplus
Monies
|
13.
|
PROTECTION OF
PURCHASERS
|
13.1
|
Protection
of Purchasers
|
(a)
|
whether
the rights conferred by or pursuant to this Debenture or any other
document have arisen or become
exercisable;
|
(b)
|
whether
any consents, regulations, restrictions or directions relating to such
rights have been obtained or complied
with;
|
(c)
|
otherwise
as to the propriety or regularity of acts purporting or intended to be in
exercise of any such rights; or
|
(d)
|
as
to the application of any money borrowed or raised or whether any amount
remains secured by this Debenture.
|
13.2
|
Good
Discharge
|
14.
|
POWER OF
ATTORNEY
|
14.1
|
Appointment
and Powers
|
|
(a)
|
carrying
out any act or thing which the Borrower is obliged to do (but has not
done) under this Debenture (including, without limitation, the execution
and delivery of charges over, transfers, conveyances, mortgages,
assignments and assurances of, and other instruments relating to, any of
the Charged Property and/or the giving of any notices, orders, directions
or instructions in connection with any of the Charged Property);
and/or
|
|
(b)
|
enabling
the Lender or any Receiver or Delegate to exercise, or delegate the
exercise of, any of the Collateral Rights (including, after the occurrence
of an Event of Default, the exercise of any right of a legal or beneficial
owner of the Charged Property).
|
14.2
|
Ratification
|
15.
|
EFFECTIVENESS OF
SECURITY
|
15.1
|
Continuing
Security
|
15.2
|
Reinstatement
of Security
|
(a)
|
the
liability of the Borrower and the security created by or pursuant to this
Debenture shall continue as if the payment, discharge, avoidance or
reduction had not occurred; and
|
(b)
|
the
Lender shall be entitled to recover the value or amount of that payment or
security from the Borrower, as if the payment, discharge, avoidance or
reduction had not occurred.
|
15.3
|
Immediate
Recourse
|
15.4
|
Additional
Security
|
16.
|
RELEASE OF
SECURITY
|
16.1
|
Final
Redemption
|
16.2
|
Avoidance
of Payments
|
17.
|
SET-OFF
|
17.1
|
Set-off
|
17.2
|
Time
Deposits
|
|
(a)
|
the
security created by or pursuant to this Debenture has become enforceable;
and
|
|
(b)
|
no
amount of the Secured Indebtedness is due and
payable,
|
18.
|
EXPENSES AND
INDEMNITIES
|
18.1
|
Expenses
|
18.2
|
Expenditure
Incurred by Lender
|
18.3
|
General
Indemnity
|
18.4
|
Indemnities
Separate
|
19.
|
RIGHTS, WAIVERS AND
DETERMINATIONS
|
19.1
|
Ambiguity
|
19.2
|
Remedies
and Waivers
|
19.3
|
Partial
Invalidity
|
19.4
|
Determination
|
20.
|
ASSIGNMENT
|
21.
|
NOTICES
|
22.
|
GOVERNING
LAW
|
22.1
|
This
Debenture shall be governed by and construed in all respects in accordance
with the laws of Malaysia.
|
22.2
|
The
Parties hereto hereby submit to the jurisdiction of the courts of Malaysia
in all matters connected with the obligations and liabilities of the
Parties under this Deed.
|
23.
|
PRINCIPAL AND
SUBSIDIARY INSTRUMENT
|
1.
|
Power
to enter, take possession, assume control of, get in and collect the
Charged Property and for that purpose to take any proceedings in the name
of the Borrower or otherwise as the Receiver thinks
fit.
|
2.
|
Power
to sell, transfer, assign or otherwise dispose of the Charged Property
(including any fixtures which may be sold separately from any related land
comprising part of the Charged Property) to any person (including a new
company formed under paragraph 5 below), whether or not the Lender or
Receiver has taken possession, on such terms as the Receiver thinks fit
and whether:
|
|
(b)
|
for
cash or property or other valuable consideration or in one lot or in
parcels or on terms that payment of all or any part of the purchase price
is deferred (whether at interest or not and whether with or without
security);
|
|
(c)
|
or
not in conjunction with the sale of other property by the Lender, the
Receiver or any other person; and
|
5.
|
Power
to form a new company and to subscribe for or acquire (for cash or
otherwise) any investment in or of the new company and to sell, transfer,
assign or otherwise dispose of or realise any such investments or any part
thereof or any rights attaching
thereto.
|
6.
|
Power
to manage and use the Charged Property and to exercise and do (and permit
the Borrower (or any of its nominees) to exercise and do) all such rights
and things as the Receiver would be capable of exercising or doing if he
were the absolute beneficial owner of the Charged
Property.
|
7.
|
Power
to enter into any contract or arrangement, and to perform, repudiate,
rescind, cancel or vary any contract or arrangement to which the Borrower
is a party, as the Receiver shall think
expedient.
|
8.
|
Power
to grant leases, tenancies, licences and rights of user, grant renewals
and accept surrenders of leases, tenancies, licences or rights of user and
otherwise to reach agreements and make arrangements with, and to make
allowances to, any lessees, tenants or other persons (including a new
company formed under paragraph 5 above) from whom any rents and profits
may be receivable (including those relating to the grant of any licences,
the review of rent in accordance with the terms of, and the variation of,
the provisions of any leases, tenancies, licences or rights of user
affecting the Charged Property).
|
9.
|
Power
to pull down, rebuild, repair, alter, decorate, add to, improve, develop,
complete or maintain the Charged Property (including the development or
redevelopment of any Charged Property) and to lease or otherwise acquire
and develop or improve properties or other assets or do anything
in connection with the Charged Property without being
responsible for loss or damage.
|
10.
|
Power
to take out, maintain, renew or increase insurances in respect of the
Charged Property in such amounts and on such terms as the Receiver shall
think fit.
|
11.
|
Power
to grant to any person an option to purchase or other rights over the
Charged Property upon such terms as the Receiver shall think
fit.
|
12.
|
Power
to add or sever fixtures and fittings and sell or otherwise dispose of or
deal with them separately from the premises to which they were
affixed.
|
13.
|
Power
to raise money either unsecured or on the security of the Charged Property
(either in priority to the security created by or pursuant to this
Debenture or otherwise).
|
14.
|
Power
to enter into bonds, covenants, guarantees, indemnities and other
commitments and to make all payments needed to effect, maintain or satisfy
them.
|
15.
|
Power
to surrender or transfer the Charged Property to any governmental agency
(whether or not for fair
compensation).
|
16.
|
Power
to exchange (whether or not for fair value) with any person (including a
new company formed under paragraph 5 above) any Charged Property for an
interest in property of any tenure and the property so acquired may be
dealt with by the Receiver as if it were part of the Charged Property and,
for that purpose, the Receiver may create an Encumbrance over that
property in favour of the Lender.
|
17.
|
Power
to employ managers, solicitors, officers, agents, accountants,
auctioneers, consultants, workmen and employees on such terms as the
Receiver shall think fit and to dismiss the same or discharge any such
persons employed by the Borrower.
|
Receiver shall think fit and to dismiss the same or discharge any such persons employed by the Borrower. |
18.
|
Power
to receive all payments (including but not limited to book debts, other
debts, receivables and other monetary claims) and give receipts for all
monies and other assets which may come into the hands of the Receiver,
which receipts shall exonerate any person paying or handing over such
monies or other assets from all liability to see to the application
thereof and from all liability to enquire whether the Secured Indebtedness
has become due or payable or otherwise as to the propriety or regularity
of the appointment of any Receiver.
|
19.
|
Power
to carry out and enforce, or refrain from carrying out or enforcing,
rights and obligations of the Borrower forming part of the Charged
Property or obtained or incurred in the exercise of the rights, powers and
remedies of the Receiver.
|
20.
|
Power
to bring, prosecute, enforce, defend and abandon actions, suits and
proceedings in relation to the Charged Property (including, without
limitation, for the recovery of book debts, other debts, receivables and
other monetary claims due to the Borrower) or in any way relating to this
Debenture, power to settle, adjust, refer to
arbitration, compromise and arrange any claims, accounts,
disputes, questions and demands with or by any person who claims to be a
creditor of the Borrower or relating to the Charged Property and power to
execute releases or other discharges in relation
thereto.
|
21.
|
Power
to exercise any voting and other rights attached to any shares or
securities forming part of the Charged
Property.
|
22.
|
Power
to require payment to the Receiver or to the Lender of any book debts,
other debts, receivables and other monetary claims due to the Borrower, or
of any credit balance on any account in the name of the Borrower with any
bank or financial institution, and power to operate any such
account.
|
23.
|
Power
to execute deeds and documents on behalf of the Borrower and do all such
other acts and things as may be considered by the Receiver to be
incidental or conducive to any of the matters or powers aforesaid or to
the realisation of the security created by or pursuant to this Debenture
or to the exercise of the Collateral Rights and to use the name of the
Borrower for all the purposes
aforesaid.
|
THE COMMON SEAL of | ) |
SUNPOWER MALAYSIA | ) |
MANUFACTURING SDN. BHD. | ) |
was affixed to the Debenture | ) |
in the presence of | ) |
/s/ Robert David Vinje | /s/ Lim Poh Seng |
Name: Robert
David Vinje
|
Name: Lim
Poh Seng
|
Designation: Director
|
Designation: Company
Secretary
|
NRIC/Passport
No.: 076374772
|
NRIC/Passport
No.: 710228-10-5519
|
Signed for and on behalf of | ) |
/s/ DATUK LATIFAH
BT. DATUK ABU MANSOR
|
GOVERNMENT OF MALAYSIA | ) | DATUK LATIFAH BT. DATUK ABU MANSOR |
in the presence of | ) | Deputy Secretary General (Policy) |
) | Ministry of Finance Malaysia |
CONFIDENTIAL
TREATMENT REQUESTED
--
CONFIDENTIAL
PORTIONS OF THIS DOCUMENT HAVE BEEN REDACTED AND HAVE BEEN SEPARATELY
FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
|
1.
|
DEFINITIONS AND
INTERPRETATIONS
|
1
|
|
2.
|
ASSIGNMENT
|
2
|
|
|
|||
3.
|
ESTABLISHMENT
AND OPERATION OF SPECIAL LOAN ACCOUNT
|
2
|
|
4.
|
OBLIGATIONS
OF THE ASSIGNOR
|
4
|
|
5.
|
REPRESENTATIONS, WARRANTIES AND
UNDERTAKINGS
|
5
|
|
6.
|
RIGHTS
OF THE ASSIGNEE
|
6
|
|
7.
|
UTILISATION
OF PROCEEDS
|
6
|
|
8.
|
ASSIGNOR‘S
LIABILITIES
|
6
|
|
9.
|
POWER OF
ATTORNEY
|
7
|
|
10.
|
AMENDMENT
|
7
|
|
11.
|
GOVERNING
LAW
|
7
|
|
12.
|
NOTICE
|
7
|
|
13.
|
TAXATION
|
7
|
|
14.
|
WAIVER
|
7
|
|
15.
|
PRINCIPAL AND
SUBSIDIARY INSTRUMENT
|
8
|
|
SCHEDULE
1
|
10
|
||
FORM
OF NOTICE OF ASSIGNMENT
|
10
|
||
SCHEDULE
2
|
12
|
||
FORM
OF CERTIFICATE OF PAYMENT
|
|||
12
|
(1)
|
SUNPOWER MALAYSIA MANUFACTURING
SDN. BHD. (Company No: 824246-W) a company incorporated in Malaysia
under the Companies Act 1965 and having its registered address at Level 41
– Suite B, Menara Maxis, Kuala Lumpur City Centre, 50088 Kuala
Lumpur (hereinafter referred to as “the Assignor”) of the one
part;
|
(2)
|
GOVERNMENT OF MALAYSIA,
for this purpose being represented by the Ministry Of Finance
having its address at Kompleks Kementerian Kewangan, No. 5, Persiaran
Perdana, Precinct 2, 62592 Putrajaya (hereinafter referred to as “the
Assignee”) of the
other part.
|
A.
|
Pursuant
to a Facility Agreement (hereinafter referred to as the “Facility Agreement”)
entered into by the Parties on even date, the Assignee has agreed to make
available to the Assignor the sum of Ringgit One Billion
(RM1,000,000,000.00) only (hereinafter referred as “the Facility”) for the
purposes specified in the Facility
Agreement.
|
B.
|
By
the terms of the Facility Agreement, it was agreed between the Assignee
and the Assignor that this Deed shall form part of the security to the
Facility under the Facility
Agreement.
|
|
1.1
|
Unless
the context otherwise requires and save as specifically defined in this
Deed, words and expression in the Facility Agreement shall have the same
meanings when used in this Deed.
|
|
“Assigned
Sum”
|
means
all present and future sums, rights, title and interest of the Assignor in
and to all moneys standing to the credit of the Special Loan Account or to
be paid into or for the credit of the Special Loan Account pursuant to
Clause 3 of this Deed;
|
|
“Security
Account Bank”
|
means
Malayan Banking Berhad;
|
|
“Special
Loan Account”
|
means
the account opened and maintained by the Assignor with the Security
Account Bank under account number *** pursuant to and in accordance with
this Deed.
|
(a)
|
any
references to any statute shall be a reference to that statute as amended
or re-enacted from time to time;
|
(b)
|
references
to Clauses and Schedules shall unless otherwise expressly provided be
references to Clauses and Schedules to this
Deed;
|
(c)
|
the
headings are for ease of reference
only;
|
(d)
|
any
references to the singular includes the plural and vice
versa;
|
(e)
|
any
references to the masculine gender includes the feminine and vice
versa;
|
(f)
|
the
schedules and the annexures to this Deed (if any) are to be read and
construed as essential parts of this
Deed.
|
|
2.1
|
The
Assignor as the beneficial owner of the Special Loan Account hereby agrees
to assign absolutely to the Assignee the Assigned Sum for the purpose of
securing payment of the Indebtedness subject to the terms and conditions
of this Deed. Save and except as expressly provided above, the Assignee
shall have no obligation of any kind whatsoever in relation to the
obligations or be under any liability
whatsoever.
|
|
2.2
|
The
Assignor shall be entitled at its own costs and expenses, subject to the
written consent by the Assignee, to obtain a discharge and release of this
Deed at any time upon repayment of the Indebtedness to the
Assignee.
|
|
3.1
|
The
Assignor has opened the Special Loan Account with the Security Account
Bank and such Special Loan Account shall be operated by one (1) authorized
signatory of the Assignee and one (1) authorized signatory of the
Assignor. Both Parties shall inform the other Party of their respective
nominated signatories before they are appointed. The Party nominating a
signatory shall be allowed to change the signatory so appointed from time
to time, provided always that such Party shall provide the other Party
with prior written notice.
|
|
3.2
|
Upon
the execution of this Deed, the Assignor shall issue the notice of
assignment to the Security Account Bank in the form set out in Schedule 1
hereto and shall send a copy of the same to the Assignee. The Assignor
shall procure the Security Account Bank to notify the Assignor and the
Assignee of the acceptance of such notice of assignment within fourteen
(14) days from the date of receipt of such
notice.
|
|
3.3
|
The
transactions involving the Special Loan Account are as
follows:
|
(a)
|
Payment to Special
Loan Account
|
(i)
|
payment
of the funds to be received by the Assignor under the Facility from
time to time in accordance with the terms specified in the Facility
Agreement; and
|
(ii)
|
the
scheduled repayment amounts more particularly set out in Clause 7.2 of the
Facility Agreement.
|
(b)
|
Withdrawal from the
Special Loan Account
|
|
(i)
|
Subject
to Clause 3.6(b) herein, for so long as any amounts are payable by the
Assignor to the Lender under this Agreement, the Assignor may make
withdrawal from the Special Loan Account for the purpose of the
Project at any time provided that the Assignor has submitted to MIDA a
Loan Withdrawal Notice (in the form as set out in Schedule 8) together
with a certificate of payment (in the form as set out in Schedule 7) for
withdrawal from the Special Loan Account together with the cheque(s) for
such withdrawal signed by the Assignor’s signatory. The Assignee shall,
within seven (7) days of the receipt of the certificate of payment duly
certified by MIDA, sign and return the cheque(s) to the Assignor, for the
withdrawal of funds from the Special Loan Account provided that in any
event the Assignee shall, within fourteen (14) days of the delivery by the
Assignor of the certificate of payment to MIDA, sign and return the
cheque(s) to the Assignor, for the withdrawal of funds from the Special
Loan Account.
|
|
(ii)
|
Subject
to Clause 7.2 of the Facility Agreement, the Assignee hereby agrees that
the Assignor is permitted to withdraw any unutilized amounts for the
purposes of repayment in accordance with the Repayment
Schedule.
|
|
3.4
|
The
Assignor shall submit the monthly bank statements in relation to the
Special Loan Account for any month to the Assignee within thirty (30) days
from the last day of that month.
|
|
3.5
|
The
Assignor shall manage the Special Loan Account in accordance with the
terms and conditions contained in this Deed until the Indebtedness is
fully paid, settled and discharged.
|
4.
|
OBLIGATIONS
OF THE ASSIGNOR
|
(a)
|
that
the Assignor shall not and has never assigned or charged the Special Loan
Account in favour of any third party, and the Assignor shall
not without the prior written consent of the Assignee sell, assign, charge
or mortgage the Special Loan
Account;
|
(b)
|
that
the Assignor shall do or carry out every request or instruction
of the Assignee from time to time for the purpose of effecting this Deed
and all rights of the Assignee
herein;
|
(c)
|
that
the Assignor at any time and from time to time, shall do and fully comply
with all requests of the Assignee to forward all relevant instruments,
documents and records required to the Assignee to enable the Assignee to
obtain full benefits under this
Deed;
|
(d)
|
that
in the event any claims or remedies intended to be assigned under this
Deed is invalid or unenforceable by the Assignee, the Assignor shall make
the necessary claims and remedies under its own name in respect of the
Assigned Sum and shall immediately deliver whatever monies received by the
Assignor to the Assignee and until the said monies are
delivered to the Assignee, the same shall be kept in trust in
favour of the Assignor;
|
(e)
|
that
the Assignor has and shall ensure and shall carry out all its obligations
under any contract between the Assignor and the Security Account Bank
relating to the Special Loan Account and shall not do or omit any act
which will result in the Security Account Bank terminating the said
contract; and
|
|
(f)
|
that
the Assignor shall not, without the prior written consent of the Assignee
first having been obtained, agree to amend, vary or modify any contract
relating to the Special Loan Account between the Assignor and the Security
Account Bank or to release the Security Account Bank from any obligation
or to waive any breach of contract, or to allow any act or negligence of
the Security Account Bank which shall cause breach of contract or agree to
any claims caused by or relevant to any contract between the Assignor and
the Security Account Bank relating to Special Loan
Account.
|
|
6.
|
RIGHTS
OF THE ASSIGNEE
|
6.1
|
Without
prejudice to the other provisions under this Deed, this Deed shall be
enforceable immediately upon the declaration of an Events of Default under
Clause 12 of the Facility Agreement and the Assignee shall automatically
have the right to enforce all of its rights and powers under the laws, the
Facility Agreement and this Deed without any notice or consent of the
Assignor.
|
6.2
|
At
any time upon the enforcement of the security hereby
created:
|
(a)
|
the
Assignee shall have the right to give notice to the Security Account Bank
in accordance with paragraph (iii) of the notice of the assignment which
has been delivered to the Security Account Bank as described in Clause
4.1; and/or
|
(b)
|
the
Assignee shall have the right to utilize all or part of the Assigned Sum
to settle the Indebtedness.
|
8.1
|
Without
prejudice to any provision to the contrary in this Deed, the Assignor
shall still have the obligation in respect of any contract between the
Assignor and the Bank in relation to the Special Loan Account to comply
and fulfill all its obligations therein. The Assignee shall not have any
obligations or liabilities relating to any contract between the Assignor
and the Bank pursuant to the Special Loan Account specifically because of
this Deed, and it is not required or obligated in any way whatsoever to
comply with and fulfill any obligation of the Assignor relating to any
contract between the Assignor and the Bank pursuant to the Special Loan
Account or to make any payment, or to make any enquiry on any payment
already made, or implementation of any obligation relating to any contract
between the Assignor and the Bank pursuant to the Special Loan Account or
to make any claims, or commence any action to collect any monies, or to
enforce any rights or advantage which has been assigned to the Assignee in
accordance with the terms of this Deed or in relation to any rights of the
Assignee.
|
8.2
|
The
Assignor hereby agrees to indemnify and hold the Assignee harmless from
all costs, claims, damages, liabilities and expenses (including the legal
cost) reasonably and directly incurred by the Assignee howsoever caused
from this Deed or the rights which have been assigned to the Assignee in
accordance with this Deed.
|
9.1
|
The
Assignor hereby by way of security irrevocably appoints the Assignee to be
its attorney and on its behalf and in its name or otherwise, upon this
Deed becoming enforceable in accordance with Clause 6.1, to execute and do
all such assurance, acts and things which the Assignor ought to do under
the covenants and provisions contained in this Deed generally in its name
or otherwise and on its behalf to exercise all or any of the powers,
authorities and discretions conferred by or pursuant to this Deed on the
Assignor and (without prejudice to the generality of the foregoing) to
seal and deliver and otherwise perfect any deed, assurance, agreement,
instrument or act which it or he may deem proper in or for the
purpose of exercising any of such powers, authorities and
discretions.
|
9.2
|
The
Assignor hereby ratifies and confirms and agrees to ratify and confirm
whatever any such attorney as is mentioned in sub-clause (1) of this
Clause 9 shall do or purport to do in the lawful exercise of all or any of
the powers, authorities and discretion referred to in such
sub-clause.
|
|
11.1
|
This
Deed shall be governed by and construed in all respects in accordance with
the laws of Malaysia.
|
|
11.2
|
The
Parties hereto hereby submit to the jurisdiction of the Courts of Malaysia
in all matters connected with the obligations and liabilities of the
Parties under this Deed.
|
(a)
|
free
from any prohibition or condition;
|
(b)
|
free
from and not subject to (except as otherwise imposed by laws) any set-off
or provisions relating to any tax;
and
|
(c)
|
without
any set-off or provision (except as otherwise imposed by laws) on the
account from any bank charges or commission
whatsoever.
|
The Common Seal of | ) |
SUNPOWER MALAYSIA | ) |
MANUFACTURING SDN BHD | ) |
(COMPANY NO: 824246-W) | ) |
was hereunto affixed | ) |
in the presence of: | ) |
/s/ Robert David Vinje | /s/ Lim Poh Seng |
Director | Director/Secretary |
Name: Robert David Vinje | Name: Lim Poh Seng |
NRIC/Passport No: 076374772 | NRIC/Passport No: 710228-10-5519 |
Signed for and on behalf of | ) |
/s/ DATUK LATIFAH
BT. DATUK ABU MANSOR
|
GOVERNMENT OF MALAYSIA | ) | DATUK LATIFAH BT. DATUK ABU MANSOR |
in the presence of | ) | Deputy Secretary General (Policy) |
) | Ministry of Finance Malaysia |
(i)
|
pursuant
to a Deed of Assignment dated
[ ]
(the “Deed”)
between us (the “Assignor”) and the
Government of Malaysia (the “Assignee”) and as
security for our indebtedness to the Assignee under the Facility
Agreement, we have agreed to assign to the Assignee all our present and
future sums, rights, title and interest in and to all moneys standing to
the credit of the Special Loan Account or to be paid into or for the
credit of the Special Loan Account according to the terms specified in the
Deed;
|
(ii)
|
as
long as the Deed has not been enforced, you are authorised and directed to
allow us to make withdrawals in accordance with the authorized mode of
operation of the Special Loan Account as provided by us to you
;
|
(iii)
|
only
after the Deed has been enforced as a result of an event of default under
the Facility Agreement, you are authorised and directed to pay the
Assigned Sum to the Assignee or otherwise act in accordance with any
directions by the Assignee, and thereafter agree to accept and recognise
any notice in writing to the Assignee informing you that the said Deed has
been so enforced;
|
(iv)
|
all
powers and directions in the notice therein is not to be nullified or
amended by us without securing the written agreement from the Assignee;
and
|
(v)
|
unless
otherwise defined herein, terms in the Deed shall have the same meanings
when used herein.
|
|
(ii)
|
SunPower
Malaysia Manufacturing Sdn. Bhd.
|
CONFIDENTIAL
TREATMENT REQUESTED
--
CONFIDENTIAL
PORTIONS OF THIS DOCUMENT HAVE BEEN REDACTED AND HAVE BEEN SEPARATELY
FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
|
Milestone
Activities
|
Payment
Due (U.S.
Dollars)**
|
%
Owed of Total
Contract
Price
|
Cumulative
% Owed of
Total
Contract Price
|
***
|
****
|
****
|
****
|
To
SunPower:
SunPower
GmbH
Wiesenstr.
3
60385
Frankfurt
Germany
Fax: +49-69-956347199
Attn: Jörn
Jürgens
|
To
Ecoware:
Ecoware
S.p.A.
Via
nona strada 9
35129
Padova
Italy
Fax: +39-049-7387638
Attn: Leopoldo
Franceschini
|
Shipping
period 2009
|
|||||||
Quarter
of shipment
|
Q1
|
Q2
|
Q3
|
Q4
|
Annual
Total
|
||
Quantity
(MWp)
|
***
|
***
|
***
|
***
|
***
|
||
Price
(Euro/Wp)
|
***
|
***
|
***
|
***
|
|||
Shipping
period 2010
|
|||||||
Quarter
of shipment
|
Annual
Total
|
||||||
Quantity
(MWp)
|
***
|
||||||
Price
(Euro/Wp)
|
***
|
||||||
Shipping
period 2011
|
|||||||
Quarter
of shipment
|
Annual
Total
|
||||||
Quantity
(MWp)
|
***
|
||||||
Price
(Euro/Wp)
|
***
|
||||||
Shipping
period 2012
|
|||||||
Quarter
of shipment
|
Annual
Total
|
||||||
Quantity
(MWp)
|
***
|
||||||
Price
(Euro/Wp)
|
***
|
||||||
(1)
|
SPR
*** Wp (or greater) 72 cell Solar Panel (e.g., SunPower *** Wp Solar
Panel)
|
(2)
|
SPR
*** Wp (or greater) 96 cell Solar Panel (e.g., SunPower *** Wp Solar
Panel)
|
n
|
In
accordance with Section 1(a) of the Agreement, SunPower may from time to
time modify the description or specifications of the Solar Panels upon ***
months’ prior written notice to
Ecoware.
|
n
|
Pricing
is on a rated watt peak basis. For example, pricing for each
SunPower *** Wp Solar Panel is *** Wp times the Euro/Wp price contained in
Schedule
“1”.
|
2009
|
2010
|
2011
|
2012
|
|
MW
|
***
|
***
|
***
|
***
|
Price
(Euro/Wp)
|
***
|
***
|
***
|
***
|
Payment
Terms: net 45 calendar days after delivery
|
||||||||||||
Trade
Term:
|
||||||||||||
Notes:
|
||||||||||||
Purchase
Order governed by the Photovoltaic Equipment Master Supply Agreement dated
November 4, 2008.
|
Limited
Warranty Statement
|
Certificato di Garanzia
Limitata
|
SUNPOWER
LIMITED WARRANTY FOR PV MODULES
SPR-225-xxx-x,
SPR-220-xxx-x, SPR-215-xxx-x, SPR-210-xxx-x, SPR-205-xxx-x, SPR-200-xxx-x,
SPR-90-xxx-x (“xxx-x” define product variants)
|
GARANZIA
LIMITATA SUNPOWER PER PANNELLI SOLARI
SPR-225-xxx-x,
SPR-220-xxx-x, SPR-215-xxx-x, SPR-210-xxx-x, SPR-205-xxx-x, SPR-200-xxx-x,
SPR-90-xxx-x (“xxx-x” definisce le varianti di
prodotti)
|
1.Limited
Product Warranty – Ten (10) Year Repair, Replacement or Refund
Remedy
|
1.Garanzia
Limitata sul Prodotto – Dieci (10) Anni per Riparazione, Sostituzione o
Rimborso
|
SunPower
Italia S.r.l. with sole quotaholder, with registered office in Milan, via
Turati 16/18, corporate capital Euro 100,000, fully paid in, registered
with the Registro delle
Imprese of Milan, tax and VAT No. 05957070963 (SunPower) warrants that
for ten (10) years from the date of delivery, its photovoltaic modules
("Solar Panels")
shall be free from defects in materials and workmanship under normal
application, installation, use and service conditions.
|
SunPower
Italia S.r.l. con socio unico, con sede legale in Milano, Via Turati
16/18, capitale sociale Euro 100.000, interamente versato, iscritta al
Registro delle Imprese di Milano, C.F. e partita IVA 05957070963 (SunPower) garantisce che
per dieci (10) anni a partire dalla data di consegna i suoi pannelli
solari fotovoltaici (“Pannelli Solari”)
saranno privi di difetti di materiali e di manodopera in condizioni di
normale applicazione, installazione, utilizzo e
manutenzione.
|
If
the Solar Panels fail to conform to this warranty, then for a period
ending ten (10) years from date of delivery, SunPower will, at its option,
either repair or replace the product, or refund the purchase price as paid
by Ecoware ("Purchase
Price").
|
Qualora
i Pannelli Solari non rispettino la garanzia, per un periodo di dieci (10)
anni dalla data di consegna, SunPower, a propria scelta, riparerà o
sostituirà il prodotto, ovvero rimborserà il prezzo di acquisto pagato da
Ecoware (“Prezzo di
Acquisto”).
|
The
repair, replacement or refund remedy shall be the sole and exclusive
remedy provided under the Limited Product Warranty and shall not extend
beyond the ten (10) year period set forth herein.
|
La
riparazione, la sostituzione o il rimborso saranno l’unico ed esclusivo
rimedio in base alla Garanzia Limitata sul Prodotto, e non si estenderanno
oltre il periodo di dieci (10) anni qui stabilito.
|
This
Limited Product Warranty does not warrant a specific power output, which
shall be exclusively covered under clause 2 hereinafter (Limited Power
Warranty).
|
La
presente Garanzia Limitata sul Prodotto non garantisce una specifica
potenza di uscita, la quale sarà coperta esclusivamente dalla successiva
clausola 2 (Garanzia Limitata sulla Potenza).
|
2.
Limited Power Warranty
|
2.
Garanzia Limitata sulla Potenza
|
SunPower
additionally warrants:
|
SunPower
fornisce anche la seguente garanzia:
|
If,
within twelve (12) years from date of delivery to Ecoware any Solar Panels
exhibits a power output less than 90% of the Minimum Peak Power1 as specified at the date of delivery in
SunPower's Product datasheet, provided that such loss in power is
determined by SunPower (at its sole and absolute discretion) to be due to
defects in material or workmanship SunPower will replace such
loss in power by either providing to Ecoware additional Solar Panels to
make up such loss in power or by providing monetary compensation
equivalent to the cost of additional Solar Panels required to make up such
loss in power or by repairing or replacing the defective Solar Panels, at
the option of SunPower
|
Se,
entro dodici (12) anni dalla data di consegna a Ecoware, un qualsiasi
Pannello Solare manifesti una potenza di uscita inferiore al 90% del
Rendimento di Potenza Minimo2 specificato alla data di consegna nel
foglio-dati del Prodotto SunPower, a condizione che SunPower concluda (a
sua esclusiva ed assoluta discrezione) che la perdita di potenza dipende
da difetti di materiali o di manodopera, SunPower risarcirà tale perdita
di potenza con la fornitura a Ecoware di ulteriori Pannelli Solari per
eliminare tale perdita di potenza, o con il pagamento di un risarcimento
in denaro pari al costo degli ulteriori Pannelli Solari necessari per
compensare la perdita di potenza, ovvero riparando o sostituendo i
Pannelli Solari difettosi, a scelta di SunPower.
|
SunPower
additionally warrants:
|
SunPower
fornisce anche la seguente garanzia:
|
If,
within twenty five (25) years from date of delivery to Ecoware any Solar
Panels exhibits a power output less than 80% of the Minimum Peak
Power1 as
specified at the date of delivery in SunPower's Product datasheet,
provided that such loss in power is determined by SunPower (at its sole
and absolute discretion) to be due to defects in material or workmanship
SunPower will replace such loss in power by either providing to Ecoware
additional Solar Panels to make up such loss in power or by providing
monetary compensation equivalent to the cost of additional Solar Panels
required to make up such loss in power or by repairing or replacing
the defective Solar Panels, at the option of SunPower.
|
Qualora,
entro venticinque (25) anni dalla data della consegna a Ecoware, un
qualsiasi Pannello Solare manifesti una potenza di uscita inferiore
all’80% del Rendimento di Potenza Minimo specificato alla data di consegna
nel foglio-dati del Prodotto SunPower, a condizione che SunPower concluda
(a sua esclusiva ed assoluta discrezione) che la perdita di potenza
dipende da difetti di materiali o di manodopera, SunPower risarcirà tale
perdita di potenza con la fornitura a Ecoware di ulteriori Pannelli Solari
per eliminare tale perdita di potenza, o con il pagamento di un
risarcimento in denaro pari al costo degli ulteriori Pannelli Solari
necessari per compensare la perdita di potenza, ovvero riparando o
sostituendo i Pannelli Solari difettosi, a scelta di
SunPower.
|
3.
Exclusions and limitations
|
3.
Esclusioni e limitazioni
|
(a)
Warranty claims must in any event be filed within the applicable Warranty
period.
|
(a)
Le richieste di garanzia devono in ogni caso essere consegnate entro il
periodo di Garanzia applicabile.
|
(b)
Without prejudice to any mandatory law provision, warranty claims may only
be made by, or on the behalf of, Ecoware or a person to whom title has
been transferred for the Solar Panels.
|
(b)
Senza pregiudizio per alcuna disposizione imperativa di legge, le
richieste di garanzia possono essere inoltrate solo da, o nell’interesse,
di Ecoware, ovvero da persona alla quale sia
stata
trasferita la proprietà sui Pannelli Solari.
|
(c)
The Limited Warranties do not apply to any of the
following:
|
c)
La Garanzie Limitate non si applicano a nessuno dei seguenti
casi:
|
1.
Solar Panels which in SunPower's absolute judgment have been subjected to:
misuse, abuse, neglect or accident; alteration, improper installation,
application or removal, including but not limited to installation,
application or removal by any party other than a SunPower authorized
dealer; non-observance of SunPower's installation, users and/or
maintenance instructions; repair or modifications by someone other
than an approved service technician of SunPower; power failure surges,
lightning, flood, fire, accidental breakage or other events outside
SunPower's control.
|
1.
Pannelli Solari che, secondo l’insindacabile giudizio di SunPower, sono
stati sottoposti a: utilizzo scorretto, abuso, negligenza o incidenti;
alterazione, installazione, impiego o rimozione impropri, inclusi, ma non
limitatamente a, installazione, impiego o rimozione da parte di qualunque
soggetto diverso da un operatore autorizzato da SunPower; mancato rispetto
delle istruzioni di SunPower per l’installazione, delle istruzioni per gli
utenti e/o per la manutenzione; riparazioni o modifiche apportate da
qualcuno che non sia un tecnico di servizio approvato da SunPower; picchi
di mancanza di potenza; fulmine, inondazione, incendio, guasto accidentale
o altri eventi al di fuori del controllo di SunPower.
|
2.
Cosmetic defects stemming from normal wear and tear of Solar Panels
materials.
|
2.
Difetti superficiali derivanti da normale uso ed usura dei materiali dei
Pannelli Solari.
|
3.
Solar Panels installed in locations, which in SunPower’s absolute judgment
may be subject to direct contact with salt water.
|
3.
Pannelli Solari installati in postazioni che, secondo insindacabile
giudizio di SunPower, possono essere soggette a contatto diretto con acqua
salata.
|
(d)
The Limited Warranties do not cover any transportation costs for return of
the Solar Panels, or for reshipment of any repaired or replaced Solar
Panels, or cost associated with installation, removal or reinstallation of
the Solar Panels.
|
(d)
Le Garanzie Limitate non coprono alcun costo di trasporto per la
restituzione dei Pannelli Solari, o per la rispedizione di Pannelli Solari
riparati o sostituiti, né alcun costo connesso all’installazione, alla
rimozione o alla reinstallazione dei Pannelli Solari.
|
(e)
When used on a mobile platform of any type, the Limited Power Warranty,
applying to any of the Solar Panels shall be limited to twelve (12) years
as per the provisions of clause 2(a) hereof.
|
(e)
Quando utilizzati su una piattaforma mobile di qualsiasi tipo, la Garanzia
Limitata di Potenza, che si applica a qualsiasi Pannello Solare, sarà
limitata a dodici (12) anni secondo le disposizioni di cui alla clausola
2(a) del presente documento.
|
(f)
Warranty claims will not apply if the type or serial number of the Solar
Panels is altered, removed or made illegible.
|
(f)
Le richieste di garanzia non saranno prese in considerazione se il tipo o
il numero seriale del Pannello Solare è stato alterato, rimosso o reso
illeggibile.
|
4.
Limitation of Warranty Scope
|
4.
Ambito della Limitazione di Garanzia
|
SUBJECT TO THE MANDATORY
LIMITATIONS UNDER APPLICABLE LAW, THE LIMITED WARRANTIES SET FORTH HEREIN
ARE EXPRESSLY IN LIEU OF AND EXCLUDE ALL OTHER EXPRESS OR IMPLIED
WARRANTIES, INCLUDING BUT NOT LIMITED TO WARRANTIES OF MERCHANTABILITY AND
OF FITNESS FOR PARTICULAR PURPOSE, USE, OR APPLICATION, AND ALL OTHER
OBLIGATIONS OR LIABILITIES ON THE PART OF SUNPOWER, UNLESS SUCH OTHER
WARRANTIES, OBLIGATIONS OR LIABILITIES ARE EXPRESSLY AGREED TO IN WRITING
SIGNED AND APPROVED BY SUNPOWER.
|
NEL
RISPETTO DELLE LIMITAZIONI VINCOLANTI AI SENSI DELLA LEGGE APPLICABILE, LE
GARANZIE LIMITATE DI CUI AL PRESENTE DOCUMENTO SONO ESPRESSAMENTE PATTUITE
IN SOSTITUZIONE, ED ESCLUDONO, OGNI ALTRA GARANZIA ESPLICITA O IMPLICITA,
INCLUSE, MA NON LIMITATAMENTE A, LE GARANZIE DI COMMERCIABILITÀ E DI
IDONEITÀ AD UNO SCOPO PARTICOLARE, O DI UTILIZZO, E OGNI ALTRA
OBBLIGAZIONE O RESPONSABILITÀ DA PARTE DI SUNPOWER, A MENO CHE TALI ALTRE
GARANZIE, OBBLIGAZIONI O RESPONSABILITÀ SIANO ESPRESSAMENTE CONCORDATE PER
ISCRITTO, SOTTOSCRITTE ED APPROVATE DA SUNPOWER.
|
SUBJECT TO THE MANDATORY
LIMITATIONS UNDER APPLICABLE LAW, SUNPOWER SHALL HAVE NO RESPONSIBILITY OR
LIABILITY WHATSOEVER FOR DAMAGE OR INJURY TO PERSONS OR PROPERTY OR FOR
OTHER LOSS OR INJURY RESULTING FROM ANY CAUSE WHATSOEVER ARISING OUT OF OR
RELATED TO THE PRODUCT, INCLUDING, WITHOUT LIMITATION, ANY DEFECTS IN THE MODULE, OR
FROM USE OR INSTALLATION.
|
NEL
RISPETTO DELLE LIMITAZIONI VINCOLANTI AI SENSI DELLA LEGGE APPLICABILE,
SUNPOWER NON SARÀ SOGGETTA AD ALCUNA RESPONSABILITÀ OD OBBLIGAZIONE DI
ALCUN TIPO PER DANNI O LESIONI A PERSONE O PROPRIETÀ, O PER ALTRE PERDITE
O LESIONI DERIVANTI DA QUALUNQUE CAUSA ORIGINATA DA, O IN RELAZIONE AL
PRODOTTO, INCLUSO, SENZA LIMITAZIONI, QUALUNQUE DIFETTO NEL PANNELLO
SOLARE, OVVERO DERIVANTI DALL’UTILIZZO O
DALL’INSTALLAZIONE.
|
SUBJECT
TO MANDATORY LIMITATIONS UNDER APPLICABLE LAW, UNDER NO CIRCUMSTANCES
SHALL SUNPOWER BE LIABLE FOR INCIDENTAL, CONSEQUENTIAL OR SPECIAL DAMAGES,
HOWSOEVER CAUSED, LOSS OF USE, LOSS OF PROFITS, LOSS OF PRODUCTION, LOSS
OF REVENUES ARE THEREFORE SPECIFICALLY BUT WITHOUT LIMITATION
EXCLUDED.
|
NEL
RISPETTO DELLE LIMITAZIONI VINCOLANTI AI SENSI DELLA LEGGE APPLICABILE, IN
NESSUN CASO SUNPOWER SARÀ RESPONSABILE PER DANNI INCIDENTALI, CONSEGUENTI
O SPECIALI COMUNQUE CAGIONATI. LE PERDITE DI UTILIZZO, DI PROFITTI, DI
PRODUZIONE, DI ENTRATE SONO PERTANTO SPECIFICAMENTE ESCLUSE, PUR SENZA
LIMITAZIONE.
|
SUBJECT
TO THE LIMITATIONS UNDER APPLICABLE LAW, SUNPOWER'S AGGREGATE LIABILITY,
IF ANY, IN DAMAGES OR OTHERWISE, SHALL NOT EXCEED THE PURCHASE PRICE PAID
TO SUNPOWER BY ECOWARE, FOR THE UNIT OF PRODUCT OR SERVICE FURNISHED OR TO
BE FURNISHED, AS THE CASE MAY BE, WHICH GAVE RISE TO THE WARRANTY
CLAIM.
|
NEL
RISPETTO DELLE LIMITAZIONI SANCITE DALLA LEGGE APPLICABILE, LA
RESPONSABILITÀ COMPLESSIVA DI SUNPOWER, OVE SUSSISTA, PER DANNI O ALTRO,
NON SARÀ SUPERIORE AL PREZZO DI ACQUISTO PAGATO A SUNPOWER DA ECOWARE, PER
L’UNITÀ DI PRODOTTO O IL SERVIZIO FORNITO O DA FORNIRE, A SECONDA DEI
CASI, CHE HA DATO ORIGINE ALLA RICHIESTA DI GARANZIA.
|
5.
Obtaining Warranty Performance
|
5.
Ottenere l’Applicazione della Garanzia
|
If
you feel you have a justified claim covered by this Limited Warranty,
immediately notify SunPower Italia S.r.l., via Vittime Civili di Guerra 5,
48018 Faenza, Ravenna, fax No. 0546-46900, e-mail info@sunpowercorp.it,
directly. In addition, please enclose evidence of the date of delivery of
the Solar Panels.
|
Se
ritenete di avere una richiesta giustificata coperta dalla presente
Garanzia Limitata, notificate immediatamente la richiesta per iscritto a
SunPower Italia S.r.l., via Vittime Civili di Guerra 5, 48018 Faenza,
Ravenna, fax No. 0546-46900, e-mail info@sunpowercorp.it. Inoltre, per
cortesia allegate la prova della data di consegna del Pannello
Solare.
|
If
further assistance is required, please write to SunPower for
instructions.
|
Se
necessitate ulteriore assistenza, per cortesia scrivete a SunPower per
ricevere indicazioni.
|
The
return of any Solar Panels will not be accepted unless prior written
authorization has been given by SunPower.
|
La
restituzione di qualsiasi Pannello Solare non sarà accettata senza
preventiva autorizzazione scritta rilasciata da
SunPower.
|
(1)
|
Project
description (type of mounting
system)
|
(2)
|
Project
schedule (Which part is constructed and
when)
|
(3)
|
Project
location (address)
|
(4)
|
Size
of project (kWp)
|
(5)
|
Modules
used for project (list of containers or invoice numbers showing which
modules were used for the project)
|
CONFIDENTIAL
TREATMENT REQUESTED
--
CONFIDENTIAL
PORTIONS OF THIS DOCUMENT HAVE BEEN REDACTED AND HAVE BEEN SEPARATELY
FILED WITH THE SECURITIES AND EXCHANGE COMMISSION
|
(i)
|
Ground
photovoltaic systems of more than *** MW that City Solar installs as EPC
contractor for a third party;
|
(ii)
|
Rooftop
photovoltaic systems of more than *** MW that City Solar installs as EPC
contractor for a third party;
|
(iii)
|
Rooftop
photovoltaic systems of less than *** MW that City Solar installs as EPC
contractor for a third party provided that City Solar has signed with the
owner of the system a framework agreement to develop rooftop photovoltaic
systems for a global capacity over ***
MW;
|
·
|
However,
City Solar may install up to ***% of the Annual Volume in projects >***
kW and < *** MW.
|
·
|
Additionally,
the parties may mutually agree on increasing the number of installations
< *** MW on a case by case
basis.
|
|
***
CONFIDENTIAL MATERIAL REDACTED AND SEPARATELY FILED WITH THE SECURITIES
AND EXCHANGE COMMISSION.
|
(iv)
|
Ground
or rooftop photovoltaic systems of any size that City Solar develops and
installs to be owned and operated by
itself.
|
a)
|
In
case the parties do not come to an agreement on an adjusted pricing within
a *** month negotiation period starting *** or *** respectively, SunPower
shall have the right to terminate the contract with *** month
notice.
|
b)
|
In
case the exchange rate should get back above *** within the negotiation
period for a continuous period of *** weeks, SunPower shall not have the
right to terminate the contract.
|
a)
|
In
case the parties do not come to an agreement on an adjusted pricing within
a *** month negotiation period starting *** or *** respectively, City
Solar shall have the right to terminate the contract with *** month
notice.
|
b)
|
In
case the exchange rate should get back below *** within the negotiation
period for a continuous period of *** weeks, City Solar shall not have the
right to terminate the contract.
|
To SunPower: | To City Solar: |
SunPower
GmbH
Wiesenstr.
5
60385
Frankfurt
Facsimile: +49-69-9563471-99
Attn: Jörn
Jürgens
|
City
Solar Kraftwerke AG
Bosenheimer
Straße 286
55543
Bad Kreuznach
Facsimile: +49-671-88909-18
Attn: Henrik
Krüpper, Stefan Christ
|
By: /s/
Jörn Jürgens
|
By: /s/Howard
Wenger
|
|||
Name: Jörn Jürgens
|
Name: Howard Wenger
|
|||
Title Geschäftsführer
|
Title: President, Global Business Units
|
2009
|
2010
|
2011
|
TOTAL
|
||
MW
ToP
|
***
|
***
|
***
|
***
|
***
|
MW
additional call option
|
***
|
***
|
***
|
***
|
|
Additional
target quantity
|
***
|
***
|
***
|
***
|
|
total
|
***
|
***
|
***
|
***
|
|
Price/Wp
|
***
|
***
|
***
|
***
|
|
Price/Wp
|
***
|
***
|
***
|
***
|
|
Price/Wp
|
***
|
***
|
***
|
***
|
|
Price/Wp
|
***
|
***
|
***
|
***
|
Module
72 cells
|
Module
96 cells
|
|
Gen
B
|
***Wp
|
|
Gen
C
|
***Wp
|
***Wp
|
·
|
Soils
report
|
·
|
GPS
Topographical Survey
|
·
|
Inverter
type and specifications
|
1)
|
BUILDING BLOCK
DEFINITION - Each SunPower™ Tracker building block is driven by a
single 1/2hp drive and controller. Configuration by City
Solar will be based on the final Solar Panels selected by City
Solar.
|
2)
|
ACCESS - For optimal
construction and O&M access, Customer shall ensure that the site
layout should include 1 meter N-S clearance between adjacent SunPower™
Tracker system row ends.
|
3)
|
OTHER EQUIPMENT –
Customer is responsible for acquiring all electrical equipment, including
without limit all inverters and transformers, necessary to install and
operate the system, with the exception of the SunPower™ Tracker system
drives and controllers supplied under the
Agreement.
|
4)
|
SUNPOWER™ TRACKER SYSTEM
ASSEMBLY DRAWINGS – SunPower™ Tracker Assembly Drawings, which will
depict the key elements of the SunPower™ Tracker once constructed, are
included at no additional charge.
|
5)
|
FOUNDATIONS - A variety
of foundation types may be accommodated depending on local site conditions
and soil. The most common design consists of embedding the hot dip
galvanized steel drive and bearing pier tubes, provided by SunPower, in
concrete-filled holes augered in the unimproved site soil. The bearing
pier tubes are 114mm OD, and the augered holes are 500mm diameter x 1.5m
deep, for the assumed UBC Class 4 Sandy, Clay Sand soils. The drive pier
tubes are 324mm OD, and the augered holes 762mm diameter x 3.35m deep. In
the event that the soils are unsuitable and/or are collapsing-type soils
that will not stand open for concrete placement following excavation,
other foundation types may be utilized, including reinforced concrete
grade beams. Each row has (8)
piers.
|
6)
|
SITE GRADING - The
SunPower™ Tracker shall be installed sloping up to 6 degrees in the E-W
and/or N-S directions, and can accommodate from 0.3m – 1.0m PV module
ground clearance at max tilt of 45 degrees, in order to accommodate most
undeveloped sites without a requirement for extensive site
grading.
|
7)
|
FENCING – It is
recommended that a minimum 2m perimeter fence with porous wind fabric or
slats be constructed by Customer within 5m to 6m of the array. The fence
should be designed by City Solar to survive design wind speeds expected at
the project site.
|
·
|
Torque
Tube material
|
·
|
Bearing
Pier material – maximum 3.0 meter length (unless otherwise specified on
1st
page of this document)
|
·
|
Drive
Pier material – maximum 3.5 meter length (unless otherwise specified on
1st
page of this document)
|
·
|
Central
Torque Tube components
|
·
|
Strut
components
|
·
|
Bearing
Pier Cap components
|
·
|
Drive
Pier Cap components
|
·
|
PV
Module mounting clamps (Customer to specify exact module
type)
|
·
|
PV
Module mounting fasteners (Customer to specify exact module
type)
|
·
|
Drive
Mounting components
|
·
|
Fully
Integrated Linear Actuator Drive/Gearmotor/Potentiometer/Limit
Switch/Controller Assemblies
|
·
|
Torque
Tube Bearings
|
·
|
Torque
Tube Caps
|
·
|
Thrust
Bearing components
|
·
|
Soils
report
|
·
|
GPS
Topographical Survey
|
·
|
Inverter
type and specifications
|
·
|
T20
generic foundation design drawings and design loads (not site
specific, not stamped by an Italia engineer duly
licensed)
|
·
|
Torque
Tube material
|
·
|
Drive
strut component
|
·
|
Module
strut components
|
·
|
PV
Module mounting clamps
|
·
|
Drive
Mounting components
|
·
|
PV
Module mounting fasteners
|
·
|
Fully
Integrated Linear Actuator Drive/Gearmotor/Potentiometer/Limit
Switch/Controller Assemblies
|
·
|
Torque
Tube Bearings
|
·
|
Torque
Tube Caps
|
·
|
Thrust
Bearing components
|
·
|
North
Support Assemblies
|
·
|
Main
Supports Assemblies
|
·
|
South
Supports Assemblies
|
·
|
North
Deflectors
|
·
|
East
Deflectors
|
·
|
West
Deflectors
|
·
|
Wire
Tray Assemblies
|
·
|
IFF
Clips (PV Module mounting clamps)
|
·
|
Bolts
|
·
|
Flange
Nuts
|
·
|
Wire
Ropes (where necessary)
|
·
|
Spreader
Bars (where necessary)
|
·
|
The
guiding over-all principles (applies to the Annual Forecast as well as the
Revised Annual Forecast (as specified below)) for this schedule shall be
as follows :
|
i.
|
Each
individual fiscal quarter cannot hold more that ***% of the annual
committed volume.
|
ii.
|
The
first month of each fiscal quarter needs to hold ≤ ***% of the quarterly
volume.
|
iii.
|
The
second and third month of each fiscal quarter needs to hold ≤ ***% of the
quarterly volume.
|
iv.
|
If
the parties do not come to an agreement of how to allocate fiscal
quarters, then the annual volume shall be evenly distributed within the
year.
|
·
|
CitySolar
has the right to move volume between months in the following way
:
|
o
|
Month 1 – 4 has to be looked
down, means 0% flexibility
|
o
|
Month 5 – 6 volumes might be
changed +/- ***% in respect to the Revised Annual
Forecast.
|
o
|
Month 7 – 9 volumes might be
changed +/- ***% in respect to the Revised Annual
Forecast.
|
o
|
Month hereinafter month 9 for
the present year +-***% in respect to the Revised Annual
Forecast.
|
01/
xx
|
02/
xx
|
03/
xx
|
04/
xx
|
05/
xx
|
06/
xx
|
07/
xx
|
08/
xx
|
09/
xx
|
10/
xx
|
11/
xx
|
12/
xx
|
||
PV-only
|
MW
ToP
|
||||||||||||
T0
|
MW
ToP
|
||||||||||||
T20
|
MW
ToP
|
||||||||||||
T10
|
MW
ToP
|
1.
|
Limited
Product Warranty – Ten (10) Year
Repair, Replacement or Refund
Remedy
|
|
a)
|
SunPower
additionally warrants: If, within twelve (12) years from date of delivery
to City Solar, any Solar Module(s) exhibits a power output less than 90%
of the Minimum Peak Power as specified at the date of delivery in
SunPower’s Product datasheet, and this reduced output is caused by defects
in material or workmanship, SunPower will optionally replace such loss in
power by either providing to City Solar additional Solar Panels to make up
such loss in power or by providing monetary compensation equivalent to the
cost of additional Solar Panels required to make up such loss in power or
by repairing or replacing the defective Solar Panels.
|
|
b)
|
SunPower
additionally warrants: If, within twenty five (25) years from date of
delivery to City Solar any Solar Panel(s) exhibits a power output less
than 80% of the Minimum Peak Power as specified at the date of delivery in
SunPower’s Product datasheet, and this reduced output is caused by defects
in material or workmanship, SunPower will optionally replace such loss in
power by either providing to City Solar additional Solar Panels to make up
such loss in power or by providing monetary compensation equivalent to the
cost of additional Solar Panels required to make up such loss in power or
by repairing or replacing the defective Solar
Panels
|
3.
|
Exclusions and
limitations
|
|
a)
|
Warranty
claims must in any event be filed within the applicable Warranty
period.
|
|
b)
|
Warranty
claims may only be made by, or on the behalf of, the original end customer
or a person to whom title has been transferred for the Solar
Panels.
|
|
c)
|
The
Limited Warranties do not apply to any of the
following:
|
|
1.
|
if
and to the extent to which the Solar Panels have been subjected to:
misuse, abuse, neglect or accident; alteration, improper installation,
application or removal (including but not limited to installation,
application or removal by any party other than a SunPower authorized
dealer; non observance of SunPower's installation, users and/or
maintenance instructions; repair or modifications by someone other than an
approved service technician of SunPower; power failure surges, lightning,
flood, fire, accidental breakage or other events outside SunPower's
control.
|
|
2.
|
Cosmetic
defects stemming from normal wear and tear of Solar Panels
materials.
|
|
3.
|
if
and to the extent the Solar Panels have been installed in locations, which
may be subject to direct contact with salt
water.
|
d)
|
The
Limited Warranties do not cover any transportation costs for the return of
Solar Panels or the installation, removal or reinstallation of Solar
Panels, as long as they do not associate with the repair or replacement of
Solar Panels.
|
e)
|
When
used on a mobile platform of any type, the Limited Power Warranty,
applying to any of the Solar Panels shall be limited to twelve (12) years
as per the provisions of clause 2(a)
hereof.
|
f)
|
Warranty
claims will not apply if the type or serial number of the Solar Panels is
altered, removed or made illegible.
|
·
|
Gearmotor:
3-year parts only warranty
|
·
|
Drive: 5-year
parts only warranty
|
·
|
Controller: 3-year
limited warranty
|
·
|
Mill
Steel material: warranted at delivery to meet manufacturer
specifications
|
·
|
Fabricated
Steel: warranted at delivery to meet manufacturer
specifications
|
·
|
Fasteners:
warranted at delivery to meet manufacturer
specifications
|
·
|
Bearings:
warranted at delivery to meet manufacturer
specifications
|
·
|
Improper
or unauthorized installation, alteration or repair made to the BOS
Equipment or associated wiring and
parts;
|
·
|
damage,
malfunction, or degradation of electrical output caused by failure to
properly operate or maintain the equipment, power failure surges,
lightening, flood, fire, accidental breakage or damage, malfunction, or
other events beyond SunPower’s control, or degradation of electrical
output resulting from owner or third-party abuse, accident, alteration,
improper use, negligence, or
vandalism;
|
·
|
the
components in the construction base on which the BOS Equipment is mounted
are defective; or
|
·
|
Force Majeure events,
including without limit, any act or event which is unforeseeable, or being
foreseeable, unavoidable and outside the control of SunPower, including,
without limit, Acts of God.
|
·
|
Improper
or unauthorized installation, alteration or repair made to the Equipment
or associated wiring and parts;
|
·
|
damage,
malfunction, or degradation of electrical output caused by failure to
properly operate or maintain the Equipment, power failure surges,
lightening, flood, fire, accidental breakage or damage, malfunction, or
degradation of electrical output resulting from homeowner or
third-party abuse, accident, alteration, improper use, negligence, or
vandalism;
|
·
|
the
components in the construction base on which the Equipment is mounted are
defective;
|
·
|
Force Majeure events,
including without limit, any act or event which is unforeseeable, or being
foreseeable, unavoidable and outside the control of SunPower, including,
without limit, Acts of God.
|
(1)
|
Project
description (type of mounting
systems)
|
(2)
|
Project
schedule (Which part if constructed when
?)
|
(3)
|
Project
location (address)
|
(4)
|
Size
of project (kWp)
|
(5)
|
Modules
used for project (list of containers or invoice numbers showing which
modules were used for the
project).
|
·
|
starting
and ending date of qualification
program;
|
·
|
modification
acceptance criteria.
|
·
|
changes
that cause the module to no longer be certified to IEC
61215
|
·
|
changes
that cause the module to no longer be certified to Safety Class II
(according to IEC61730-1 and
61730-2)
|
·
|
changes
that cause the mounting systems and/or pursuant components to not longer
be certified to other necessary
certifications
|
·
|
material
changes to the length of the electrical
cable
|
·
|
changes
to the connector manufacturer or
model
|
·
|
material
changes to packaging material, methods and crate
dimensions
|
·
|
Change
of production, manufacturing location if IEC/VDE
qualified
|
·
|
Change
of suppliers with no effect to the
specification
|
·
|
Material
of component selection with no effect to the
specification
|
·
|
Glass
manufacturer meeting SunPower quality
specification
|
Subsidiary
Name
|
Jurisdiction
|
Pluto
Acquisition Company LLC
|
Delaware
|
SunPower
Corporation (Switzerland) Sarl
|
Switzerland
|
SunPower
Corporation, Systems
|
Delaware
|
SunPower
Energy Systems Spain S.L.
|
Spain
|
SunPower
GmbH
|
Germany
|
SunPower
Italia S.r.l.
|
Italy
|
SunPower
North America, LLC
|
Delaware
|
SunPower
Philippines Manufacturing Ltd.
|
Cayman
Islands
|
SunPower
Systems SA
|
Switzerland
|
SunPower
Technology Ltd.
|
Cayman
Islands
|
Joint
Venture Name
|
Jurisdiction
|
Woongjin
Energy Company, Ltd.
|
Korea
|
Company
|
dba
|
SunPower
Corporation
|
California
SunPower Corporation
|
Subsidiary
|
dba
|
SunPower
Corporation, Systems
|
California
SunPower Energy Corporation
|
SunPower
Corporation, Systems
|
PowerLight
Corporation
|
SunPower
Corporation, Systems
|
SP
Energy Systems
|
SunPower
Corporation, Systems
|
SP
Energy Systems Corporation
|
SunPower
Corporation, Systems
|
SP
Corporation, Systems
|
SunPower
Corporation, Systems
|
SunPower
Energy Systems
|
Signature
|
Title
|
Date
|
||
/s/Thomas
H.Werner
|
Chief
Executive Officer
and
Director
|
February
23, 2009
|
||
Thomas
H. Werner
|
(Principal
Executive Officer)
|
|||
/s/
Dennis V Arriola
|
Senior
Vice President and
Chief
Financial Officer
|
February
24, 2009
|
||
Dennis
V. Arriola
|
(Principal
Financial and Accounting Officer)
|
|||
/s/T.J.
Rodgers
|
Chairman
of the
Board
of Directors
|
February
24, 2009
|
||
T.J.
Rodgers
|
||||
/s/W.
Steve Albrect
|
Director
|
February
20, 2009
|
||
W.
Steve Albrecht
|
||||
/s/Betsy
S. Atkins
|
Director
|
February
20, 2009
|
||
Betsy
S. Atkins
|
||||
/s/Uwe-Ernst
Bufe
|
Director
|
February
22, 2009
|
||
Uwe-Ernst
Bufe
|
||||
/s/Thomas
R. McDaniel
|
Director
|
February
20, 2009
|
||
Thomas
R. McDaniel
|
||||
/s/Patrick
Wood
|
Director
|
February
22, 2009
|
||
Patrick
Wood
|
I,
Thomas H. Werner, Chief Executive Officer of SunPower Corporation, certify
that:
|
1.
|
I
have reviewed this Annual Report on Form 10-K of SunPower
Corporation;
|
2.
|
Based
on my knowledge, this report does not contain any untrue statement of a
material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this
report;
|
3.
|
Based
on my knowledge, the financial statements, and other financial information
included in this report, fairly present in all material respects the
financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this
report;
|
4.
|
The
registrant’s other certifying officer(s) and I are responsible for
establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal
control over financial reporting (as defined in Exchange Act Rules
13a-15(f) and 15d-15(f)) for the registrant and
have:
|
5.
|
The
registrant’s other certifying officer(s) and I have disclosed, based on
our most recent evaluation of internal control over financial reporting,
to the registrant’s auditors and the audit committee of the registrant’s
board of directors (or persons performing the equivalent
functions):
|
/S/ THOMAS H. WERNER
|
|
Thomas
H. Werner
|
|
Chief
Executive Officer
|
|
(Principal
Executive Officer)
|
I,
Dennis V. Arriola, Senior
Vice President and Chief Financial Officer of SunPower Corporation,
certify that:
|
1.
|
I
have reviewed this Annual Report on Form 10-K of SunPower
Corporation;
|
2.
|
Based
on my knowledge, this report does not contain any untrue statement of a
material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this
report;
|
3.
|
Based
on my knowledge, the financial statements, and other financial information
included in this report, fairly present in all material respects the
financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this
report;
|
4.
|
The
registrant’s other certifying officer(s) and I are responsible for
establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal
control over financial reporting (as defined in Exchange Act Rules
13a-15(f) and 15d-15(f)) for the registrant and
have:
|
5.
|
The
registrant’s other certifying officer(s) and I have disclosed, based on
our most recent evaluation of internal control over financial reporting,
to the registrant’s auditors and the audit committee of the registrant’s
board of directors (or persons performing the equivalent
functions):
|
/s/
Dennis V. Arriola
|
|
Dennis
V. Arriola
|
|
Senior
Vice President and Chief Financial Officer
|
|
(Principal
Financial and Accounting Officer)
|
/S/ THOMAS H. WERNER
|
|
Thomas
H. Werner
|
|
Chief
Executive Officer
|
|
(Principal
Executive Officer)
|
|
/s/
Dennis V. Arriola
|
|
Dennis
V. Arriola
|
|
Senior
Vice President and Chief Financial Officer
|
|
(Principal
Financial and Accounting Officer)
|