Document:

Exhibit
10.3

 

AMENDMENT
NO. 1

TO

EMPLOYMENT
AGREEMENT

This AMENDMENT NO.
1 TO EMPLOYMENT AGREEMENT (the “Amendment”),
dated as of April 15, 2003, is by and among Elgar Holdings, Inc., a
Delaware corporation (“Holdings”),
Elgar Electronics Corporation, a California corporation and a wholly owned
subsidiary of Holdings (“EEC”),
and Joseph Budano (“Executive”).

RECITALS

WHEREAS,
Executive, Holdings and EEC are party to an Employment Agreement, dated as of
July 17, 2002 (the “Employment
Agreement”);

WHEREAS, Section 4.5
of the Employment Agreement, among other things, obligates Executive to
purchase from Holdings, and Holdings to issue and sell to Executive, 500,000
shares of the common stock of Holdings at a purchase price of $0.10 per share;

WHEREAS, by agreement
of Executive, Holdings and EEC, the sale and purchase of those shares has not
yet occurred; and

WHEREAS,
Executive, Holdings and EEC desire to amend the Employment Agreement to delete
therefrom Section 4.5 in its entirety.

AGREEMENT

NOW THEREFORE, in
consideration of the premises and the mutual agreements hereinafter set forth,
the parties hereto hereby agree as follows:

1.             Amendment of Section 4.5.  Section 4.5 of the Agreement is hereby amended,
superseded and replaced in its entirety by the following:

“4.5.       [intentionally
omitted]”

2.             Waiver. 
Each of the parties hereto expressly acknowledges and agrees that no
other party hereto was in breach of the Employment Agreement because the sale
and purchase of shares pursuant to Section 4.5 of the Employment Agreement
was not consummated prior to the date of this Amendment.

3.             Governing Law. 
This Agreement shall be interpreted, construed, governed and enforced in
accordance with the laws of the State of Delaware.

4.             Counterparts.  This Agreement may be executed in one or more
counterpart copies, each of which shall be deemed to be an original and all of
which taken together shall be deemed one and the same instrument.

5.             No
Further Amendment.  Except as amended hereby, the Employment
Agreement shall continue in full force and effect.

IN WITNESS WHEREOF, Holdings and EEC have caused this Agreement to be
executed on their behalf by their duly authorized officers and Executive has
executed the same as of the day and year first above written.

ELGAR
HOLDINGS, INC.

	
  By:

  	
  /s/ Donald Glickman

  
	
   

  	
  Donald Glickman

  Chairman of the Board and Vice President

  

ELGAR
ELECTRONICS CORPORATION

	
  By:

  	
  /s/ Donald Glickman

  
	
   

  	
  Donald Glickman

  Chairman of the Board and Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Joseph Budano

  
	
  Joseph BudanoExhibit
10.4

 

AMENDMENT
NO. 1

TO

EMPLOYMENT
AGREEMENT

This AMENDMENT NO.
1 TO EMPLOYMENT AGREEMENT (the “Amendment”),
dated as of April 15, 2003, is by and among Elgar Holdings, Inc., a
Delaware corporation (“Holdings”),
Elgar Electronics Corporation, a California corporation and a wholly owned
subsidiary of Holdings (“EEC”),
and John P. Mei (“Executive”).

RECITALS

WHEREAS,
Executive, Holdings and EEC are party to an Employment Agreement, dated as of
December 30, 2002 (the “Employment
Agreement”);

WHEREAS, Section 4.5
of the Employment Agreement obligates Executive to purchase from Holdings, and
Holdings to issue and sell to Executive, 150,000 shares of the common stock of
Holdings at a purchase price of $0.05 per share, with such sale and purchase to
take place on or about February 28, 2003;

WHEREAS, by
agreement of Executive, Holdings and EEC, the sale and purchase of those shares
has not yet occurred; and

WHEREAS,
Executive, Holdings and EEC desire to amend the Employment Agreement to delete
therefrom Section 4.5 in its entirety.

AGREEMENT

NOW THEREFORE, in
consideration of the premises and the mutual agreements hereinafter set forth,
the parties hereto hereby agree as follows:

1.             Amendment of Section 4.5.  Section 4.5 of the Agreement is hereby amended,
superseded and replaced in its entirety by the following:

“4.5.       [intentionally
omitted]”

2.             Waiver. 
Each of the parties hereto expressly acknowledges and agrees that no
other party hereto was in breach of the Employment Agreement because the sale
and purchase of shares pursuant to Section 4.5 of the Employment Agreement
was not consummated prior to the date of this Amendment.

3.             Governing Law. 
This Agreement shall be interpreted, construed, governed and enforced in
accordance with the laws of the State of Delaware.

4.             Counterparts.  This Agreement may be executed in one or more
counterpart copies, each of which shall be deemed to be an original and all of
which taken together shall be deemed one and the same instrument.

5.             No
Further Amendment.  Except as amended hereby, the Employment
Agreement shall continue in full force and effect.

IN WITNESS WHEREOF, Holdings and EEC have caused this Agreement to be
executed on their behalf by their duly authorized officers and Executive has
executed the same as of the day and year first above written.

ELGAR
HOLDINGS, INC.

	
  By:

  	
  /s/ Donald Glickman

  
	
   

  	
  Donald Glickman

  Chairman of the Board and Vice President

  

ELGAR
ELECTRONICS CORPORATION

	
  By:

  	
  /s/ Donald Glickman

  
	
   

  	
  Donald Glickman

  Chairman of the Board and Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ John P. Mei

  
	
  John P. MeiExhibit
10.5

 

RESTRUCTURING
BONUS AGREEMENT

This RESTRUCTURING
BONUS AGREEMENT (“Agreement”),
dated as of March 31, 2003, is by and between Elgar Holdings, Inc., a
Delaware corporation (“Holdings”),
and Joseph Budano (“Executive”).

RECITALS

WHEREAS, Holdings
is contemplating a financial restructuring that will involve exchanging up to
$90 million of its Senior Notes due 2008 for a combination of new senior
notes, preferred stock and common stock (the “Restructuring”), in order to reduce its annualized cash interest
expense; and

WHEREAS, Holdings
desires to incentivize Executive to use his reasonable best efforts to
facilitate the Restructuring by paying him a restructuring bonus, as described
herein, if the Restructuring is completed.

AGREEMENT

NOW THEREFORE, in
consideration of the premises and the mutual agreements hereinafter set forth,
the parties hereto hereby agree as follows:

1.             Restructuring Bonus.  If the Restructuring is completed on or prior to
August 2, 2003, Executive shall be entitled to receive $135,000 (the “Restructuring Bonus”), payable as
follows:  Executive shall be entitled to
receive $22,500 during the month the Restructuring is completed, and shall be
entitled to receive an additional $22,500 in each of the five successive
months.  All compensation paid to
Executive under this Agreement shall be subject to customary withholding and
employment taxes as required by federal and state law, and shall be paid in
accordance with Holdings’ standard payroll procedures.  If there is a question as to whether the
Restructuring has been completed so as to give rise to the Restructuring Bonus,
the good faith determination of the Board of Directors of Holdings will be
conclusive.

2.             Successors and Assigns. 
The rights and obligations of Holdings under this Agreement shall inure
to the benefit of and shall be binding upon the successors and assigns of
Holdings.  Executive shall not be
entitled to assign any of his rights or obligations under this Agreement.

3.             Governing Law. 
This Agreement shall be interpreted, construed, governed and enforced in
accordance with the laws of the State of Delaware.

4.             Amendments. 
No amendment or modification of the terms or conditions of this
Agreement shall be valid unless in writing and signed by the parties hereto.

5.             Counterparts.  This Agreement may be executed in one or more
counterpart copies, each of which shall be deemed to be an original and all of
which taken together shall be deemed one and the same instrument.

IN WITNESS WHEREOF, Holdings has caused this Agreement to be executed
on its behalf by its duly authorized officer and Executive has executed the
same as of the day and year first above written.

ELGAR
HOLDINGS, INC.

	
  By:

  	
  /s/ Donald Glickman

  
	
   

  	
  Donald Glickman

  Chairman of the Board and Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Joseph Budano

  
	
  Joseph BudanoExhibit
10.6

 

RESTRUCTURING
BONUS AGREEMENT

This RESTRUCTURING
BONUS AGREEMENT (“Agreement”),
dated as of March 31, 2003, is by and between Elgar Holdings, Inc., a
Delaware corporation (“Holdings”),
and John Mei (“Executive”).

RECITALS

WHEREAS, Holdings
is contemplating a financial restructuring that will involve exchanging up to
$90 million of its Senior Notes due 2008 for a combination of new senior
notes, preferred stock and common stock (the “Restructuring”), in order to reduce its annualized cash
interest expense; and

WHEREAS, Holdings
desires to incentivize Executive to use his reasonable best efforts to
facilitate the Restructuring by paying him a restructuring bonus, as described
herein, if the Restructuring is completed.

AGREEMENT

NOW THEREFORE, in consideration
of the premises and the mutual agreements hereinafter set forth, the parties
hereto hereby agree as follows:

1.             Restructuring Bonus.  If the Restructuring is completed on or prior to
August 2, 2003, Executive shall be entitled to receive $40,000 (the “Restructuring Bonus”), payable as
follows:  Executive shall be entitled to
receive $6,670 during the month the Restructuring is completed, and shall be
entitled to receive an additional $6,666 in each of the five successive months.  All compensation paid to Executive under
this Agreement shall be subject to customary withholding and employment taxes
as required by federal and state law, and shall be paid in accordance with
Holdings’ standard payroll procedures. 
If there is a question as to whether the Restructuring has been
completed so as to give rise to the Restructuring Bonus, the good faith
determination of the Board of Directors of Holdings will be conclusive.

2.             Successors and Assigns. 
The rights and obligations of Holdings under this Agreement shall inure
to the benefit of and shall be binding upon the successors and assigns of
Holdings.  Executive shall not be
entitled to assign any of his rights or obligations under this Agreement.

3.             Governing Law. 
This Agreement shall be interpreted, construed, governed and enforced in
accordance with the laws of the State of Delaware.

4.             Amendments. 
No amendment or modification of the terms or conditions of this
Agreement shall be valid unless in writing and signed by the parties hereto.

5.             Counterparts.  This Agreement may be executed in one or more
counterpart copies, each of which shall be deemed to be an original and all of
which taken together shall be deemed one and the same instrument.

IN WITNESS WHEREOF, Holdings has caused this Agreement to be executed
on its behalf by its duly authorized officer and Executive has executed the
same as of the day and year first above written.

ELGAR
HOLDINGS, INC.

	
  By:

  	
  /s/ Donald Glickman

  
	
   

  	
  Donald Glickman

  Chairman of the Board and Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ John P. Mei

  
	
  John P. Mei

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