Document:

EXHIBIT
10.2

AMENDED AND RESTATED SEVERANCE AGREEMENT

This Amended and Restated Severance Agreement (the “Agreement”) is
entered into by and between Cherokee International Corporation (the “Company”),
a Delaware corporation, and Linster W. Fox (the “Executive”).

R E C I T A L S

WHEREAS, the Executive and the Company have previously entered into
that certain severance agreement dated October 14, 2005 (the “Old Severance
Agreement”); and

WHEREAS, the Executive and the Company desire to amend and restate in its
entirety the Old Severance Agreement to include severance benefits payable to
the Executive in the event his employment is terminated in connection with a
Change in Control.

NOW, THEREFORE, in consideration of the foregoing premises and the
mutual agreements and covenants herein contained, the Company and the Executive
agree as follows:

1.                                       At
Will Employment.  The Executive’s
employment with the Company is currently on an at-will basis, meaning that
either the Executive or the Company may terminate the employment relationship
at any time for any reason or for no reason, and without further obligation or
liability, except as set forth in this Agreement.

2.                                       Term
of Agreement. This Agreement shall remain in effect for so long as the
Executive is employed as its Executive Vice President, Chief Financial Officer
and Secretary of the Company; provided, however, that if a Change in Control
shall have occurred while the Executive is still employed, the Agreement shall
expire no earlier than twenty-four (24) months beyond the month in which such
Change in Control occurred (the “Term”).

3.                                       Severance
Payment. Provided that the Executive is not entitled to any benefits set
forth in Section 4 below and subject to the Executive’s having executed and, if
applicable, not revoked, a release of claims reasonably satisfactory to the
Company (the “Release of Claims”), in the event the Executive’s employment is
terminated by the Company other than for Cause, the Executive shall be entitled
to the following (collectively, the “Severance Benefits”):  (i) a cash payment, in lieu of any other
severance payment pursuant to any other plan or agreement of the Company or any
subsidiary thereof to which the Executive is otherwise entitled, of an amount
equal to his then annual base salary as in effect immediately prior to the date
of termination (the “Severance Payment”); (ii) the bonus that would have been
due the Executive for the year in which the 

 

                                                Executive’s
termination of employment occurs, calculated as if the Company achieved financial
performance for that year equal to that set forth in the then most recent
budget for that year approved by the Board of Directors of the Company,
prorated for the number of months worked in the fiscal year the termination
occurred (the “Bonus Payment”); (iii) continued medical, hospitalization, life
and other insurance benefits being provided to the Executive and the Executive’s
family at the date of termination, for a period of twelve (12) months after the
date of termination; provided, however, that the Company shall have no
obligation to continue to provide the Executive with such insurance benefits
for any periods after the date the Executive obtains comparable benefits (with
no significant pre existing condition exclusions) as a result of the Executive’s
employment in a new position; and (iv) to the extent permitted under Section
409A of the Code, a lump sum settlement of all deferred compensation
arrangements.  Subject to Section 7, the
Severance Payment and the Bonus Payment shall be payable in a lump sum within 10 business days
following the effective date of the Release of Claims.

The Executive shall not
be entitled to the Severance Benefits if (i) the Executive’s employment is
terminated by the Company for Cause or as a result of the Executive’s death or
Disability or (ii) the Executive terminates his employment with the Company for
any reason.

4.                                       Change
in Control Benefit.  Subject to
Section 7 and the Executive’s having executed and, if applicable, not revoked,
a Release of Claims, in the event the Executive’s employment is terminated (a)
by the Company other than for Cause or (b) by the Executive for Good Reason, in
either case within two years following a Change in Control, the Executive shall
be entitled to the following (collectively, the “Change in Control Benefits”):
(i) an amount equal to two times his then annual base salary as in effect
immediately prior to the date of termination, of which 50% shall be payable in
a cash lump sum payment within 10 business days following the effective date of
the Release of Claims, and the remaining 50% shall be payable in a cash lump
sum payment on the six-month anniversary of the Executive’s termination of
employment; (iii) Bonus Payment, payable in a cash lump sum within 10 business
days following the effective date of the Release of Claims; (iv) immediate
vesting of all outstanding stock options; (v) to the extent permitted by
Section 409A of the Code, a lump sum settlement of all deferred compensation
arrangements; (vi) continued medical, hospitalization, life and other insurance
benefits being provided to the Executive and the Executive’s family at the date
of termination, for a period of twenty-four (24) months after the date of
termination; provided, however, that the Company shall have no obligation to
continue to provide the Executive with such insurance benefits for any periods
after the date the Executive obtains comparable benefits (with no significant
pre existing condition exclusions) as a result of the Executive’s employment in
a new position; (vii) a cash payment equal to the amount forfeited by the
Executive under the Company’s 401(k) Plan or equivalent plans in effect for the
Executive; (viii) the right to utilize the services of a nationally recognized
executive placement service of the Executive’s choosing at the Company’s
expense in an 

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                                                amount
not to exceed  $50,000 in the aggregate
for the Executive at the Executive’s request, which request may be made at any
time within twenty-four (24) months following the date of termination; and (ix)
other or additional benefits then due or earned in accordance with applicable
plans and programs of the Company.

For purposes of this Agreement, the Executive’s employment shall be
deemed to have been terminated following a Change in Control by the Company
without Cause or by the Executive with Good Reason if the Executive’s
employment is terminated by the Company without Cause (within the meaning of
section 14(a)) within six months prior to a Change in Control and such
termination was in connection with the Change in Control.

The Executive shall not be entitled to the Change in Control Benefits
if (i) the Executive’s employment is terminated by the Company for Cause or as
a result of the Executive’s death or Disability or (ii) the Executive
terminates his employment with the Company without Good Reason.

5.                                       Payment
of Tax or Reduction in Compensation to Avoid Excise Tax.

(a)                                  In
the event the Executive would become entitled to any amounts payable in
connection with a Change in Control (whether or not such amounts are payable
pursuant to this Agreement) (the “Parachute Payments”), if any of such
Parachute Payments would otherwise be subject to the excise tax on excess
golden parachute payments imposed by Section 4999 of the Code (or any similar
federal, state or local tax that may hereafter be imposed) (the “Excise Tax”),
as determined in accordance with this Section 5(c), the Executive shall be
entitled to receive an additional payment from the Company (the “Additional
Payment”), sufficient to pay the Excise Tax (but not any
of the income tax or employment tax imposed upon the Additional Payment).  The Executive may, in his sole discretion,
and by written notice to the Company, elect not to receive the Additional
Payment for the Excise Tax but rather give effect to the following provisions
of section 5(b).

(b)                                 If
a reduction in the aggregate amount of Parachute Payments the Executive
otherwise would be entitled to receive by an amount not exceeding 20% of such
Parachute Payments would result in the Executive receiving a greater “Net After
Tax Amount,” as such term is defined below, then such Parachute Payments shall
be reduced by the amount, not exceeding 20% of such Payments, as will provide
to the Executive the greatest Net After Tax Amount, such reduction to be made
from such payments under this Agreement or such other of the Parachute Payments
not yet paid to the Executive as the Executive shall specify. For this purpose,
the term “Net After Tax Amount” shall mean the net amount of the Parachute
Payments after deducting any federal, state and local income tax and Excise Tax
which would be applicable to such Parachute 

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                                                Payments.  In the event that the Excise Tax is
subsequently determined to differ from the amount taken into account hereunder
at the time of termination of employment, adjustments shall be made in
accordance with this Section 5(b) in light of the revised determination.

(c)                                  For
purposes of determining whether any of the Parachute Payments would be subject
to the Excise Tax and the amount of such Excise Tax:

(i)                                     Parachute
Payments, including any payments or benefits other than those under this
Section 5 received or to be received by the Executive in connection with the
Executive’s termination of employment (whether pursuant to the terms of this Agreement
or any other plan, arrangement or agreement with the Company, any person whose
actions result in a Change in Control or any person affiliated with the Company
or such person) (which, together with the Parachute Payments, constitute the “Total
Payments”), shall be treated as “parachute payments” within the meaning of
Section 280G(b)(2) of the Code, and all “excess parachute payments” within the
meaning of Section 280G(b)(1) of the Code shall be treated as subject to the
Excise Tax, unless in the opinion of a nationally recognized public accounting
firm mutually acceptable to the Executive and the Company such other payments
or benefits (in whole or in part) do not constitute parachute payments, or such
excess parachute payments (in whole or in part) represent reasonable
compensation for services actually rendered within the meaning of Section
280G(b)(4) of the Code in excess of the base amount within the meaning of
Section 280G(b)(3) of the Code, or are otherwise not subject to the Excise Tax;

(ii)                                  the
amount of the Total Payments which shall be deemed to be treated as subject to
the Excise Tax shall be equal to the lesser of (x) the total amount of the
Total Payments and (y) the amount of excess parachute payments within the
meaning of Section 280G(b)(1) of the Code (after applying Section 5(c)(i)
hereof); and

(iii)                               the
value of any non cash benefits or any deferred payments or benefit shall be
determined by a nationally recognized public accounting firm mutually
acceptable to the Executive and the Company in accordance with the principles
of Sections 280G(d)(3) and (4) of the Code.

(d)                                 All
determinations under this Section 5 shall be made at the expense of the Company
by a nationally recognized public accounting firm mutually agreeable to the
Executive and the Company, and such determination shall be binding upon the
Executive and the Company.

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6.                                       Confidentiality and Related Covenants

(a)                                  Confidentiality.  The Executive shall not, at any time
hereafter, disclose to any person, firm or corporation or otherwise use any
confidential or proprietary information (“Confidential Information”) relating
to the Company, its constituent partners, their respective parents,
subsidiaries, and affiliates, including Confidential Information relating to
its customers, suppliers, market arrangements or methods of operations,
employees, trade practices, trade secrets, know how, and other matters that are
not publicly known outside the Company, 
except to the extent necessary to conduct the business of the Company,
or to comply with law or the valid order of a governmental agency or court of
competent jurisdiction. Without limiting the generality of the foregoing, the
parties hereto acknowledge and agree that all information not otherwise
generally known to the public relating to each of (i) this Agreement, or (ii)
the Company, any constituent partner of the Company or any of their respective
parents, subsidiaries or affiliates, is Confidential Information and is not to
be disclosed to any persons or entities or otherwise used, except to the extent
necessary to conduct the business of the Company or to comply with law or the
valid order of a governmental agency or court of competent jurisdiction.

(b)                                 Rights
to Innovations.  Any invention,
improvement, design, development or discovery conceived, developed, invented or
made by the Executive, alone or with others, during his employment hereunder
and applicable to the business of the Company, its parents, subsidiaries or
affiliates shall become the sole and exclusive property of the Company. The
Executive shall (i) disclose the same completely and promptly to the Company,
(ii) execute all documents requested by the Company in order to vest in the
Company the entire right, title and interest, in and to the same, (iii) execute
all documents required by the Company for the filing, and prosecuting of such
applications for patents, copyrights and/or trademarks, which the Company, in
its sole discretion, may desire to prosecute, and (iv) provide to the Company
all assistance it may reasonably require including, without limitation, the
giving of testimony in any suit, action or proceeding, in order to obtain,
maintain and protect the Company’s rights therein and thereto.

(c)                                  Non
Solicitation.  The Executive, except
within the course of the good faith performance of his duties hereunder, shall
not at any time while he is in the employ of the Company, any constituent
partner of the Company or any of their respective parents, subsidiaries, or
affiliates, and for 12 months following the termination of his employment for
any reason (the “Restricted Period”), solicit, recruit, request, cause, induce
or encourage any individual who is then employed by the Company, any
constituent partner of the Company or any of their respective parents,
subsidiaries or affiliates to leave the employment of or terminate the
relationship with the Company, its constituent partners, their respective
parents, subsidiaries, and affiliates, for any reason and/or otherwise
encourage to perform work 

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                                                (as
an employee, independent contractor or otherwise) for any entity or person
(including the Executive) that directly or indirectly competes with the Company
at any time during the Restricted Period and/or whose business is or includes
the design, manufacture and marketing of power supplies for the datacom,
telecom, medical, process-control and other related industries (or any portion
thereof).

(d)                                 Enforcement.  The Executive acknowledges that as a
high-level executive of the Company, the Executive provides services of a
special and unique character that are of a peculiar value to the Company, the
loss of which may not be reasonably or adequately compensated for by damages in
an action at law, and any breach or threatened breach by the Executive of any
provision of this Section 6 shall cause the Company irreparable harm which
cannot be remedied solely by damages. 
Specifically, the Executive acknowledges that (a) the provisions of this
Section 6 are reasonable and necessary to protect the legitimate interests of
the Company and/or any of its related entities, and (b) any violation of this
Section 6 will result in irreparable injury to the Company and/or any of its
related entities, the exact amount of which will be difficult to ascertain, and
that the remedies at law for any such violation would not be reasonable or
adequate compensation to the Company and/or any of its related entities for
such a violation.  Accordingly, the
Executive agrees that in the event of a breach or threatened breach by the
Executive of any of the provisions of this Section 6, the Company shall be
entitled to injunctive relief restraining the Executive and any business, firm,
partnership, individual, corporation or entity participating in such breach or
threatened breach.  Nothing herein shall
be construed as prohibiting the Company from pursuing any other remedies
available at law or in equity for such breach or threatened breach, including
the recovery of damages and the immediate termination of the Company’s duties
under this Agreement.

(e)                                  Modification
of Restrictions. It is hereby further agreed that if any court of competent
jurisdiction shall determine that the restrictions imposed in this Section 6
are unreasonable (including, but not limited to, time and scope of coverage of
this Section 6), the parties hereto hereby agree to any restrictions that such
court would find to be reasonable under the circumstances.

7.                                       Withholding;
Section 409A.  The Company shall make such deductions and
withhold such amounts from each payment made to the Executive hereunder as may
be required from time to time by law, governmental regulation or order.  If required by Section 409A of the
Code, all or part of any payment made to the Executive hereunder may be delayed
for a period of six months.

8.                                       Attorneys’
Fees and Costs.  The Company shall
pay to any law firm chosen by the Executive, all reasonable fees and costs
incurred by the Executive, in an amount
not to exceed $30,000 in the aggregate in enforcing the terms of this Agreement

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                                                or
in the resolution of any dispute with respect to the benefits payable under
Section 4 of this Agreement.  Said fees
shall be paid, as incurred, directly to the law firm chosen by the Executive as
invoiced by the law firm.

9.                                       No
Mitigation.  The Executive shall not
be required to mitigate the amount of any payment provided for in this
Agreement by seeking other employment or otherwise.

10.                                 Successors.  Any successor to the Company (whether direct
or indirect, by purchase, merger, consolidation or otherwise) or to all or
substantially all of the business and/or assets of the Company shall assume all
obligations of the Company under this Agreement and all rights of the Company
under this Agreement shall inure to such successor, in the same manner and to
the same extent that the Company would be required to perform and be entitled
to the benefits of this Agreement if no such succession had taken place.

11.                                 Notices.  All notices and other communications under
this Agreement shall be in writing and delivered to the addresses set forth
below and shall be effective when delivered, if hand delivered; three (3) days
after mailing by first class mail, certified or registered with return receipt
requested; and 24 hours after transmission of a fax :

	
  If to the Company:

  	
   

  	
  Cherokee International Corporation

  
	
   

  	
   

  	
  2841 Dow Avenue

  
	
   

  	
   

  	
  Tustin, CA 92780

  
	
   

  	
   

  	
  Attention: Chairman of the Board

  
	
   

  	
   

  	
   

  
	
  If to the Executive:

  	
   

  	
  Linster W. Fox

  
	
   

  	
   

  	
  841 Promontory Drive West

  
	
   

  	
   

  	
  Newport Beach, Ca. 92660

  

 

Either party may change such party’s address for
notices by notice duly given pursuant hereto.

12.                                 Arbitration.  The Company and the Executive agree that any
dispute arising as to the parties’ rights and obligations hereunder shall, at
the election and upon written demand of either party, be submitted to
arbitration before a single neutral arbitrator in Orange County, California and
shall be administered by the Judicial Arbitration Mediation Service (“JAMS”)
pursuant to its Employment Arbitration Rules and Procedures and subject to JAMS
Policy on Employment Arbitration Minimum Standards or Procedural Fairness (“Rules”),
which Rules shall be modified by the arbitrator to the extent necessary to
comply with applicable law.  The
arbitrator shall not have authority to add to, modify, change or disregard any
lawful terms of this Agreement or to issue an award that is contrary to
applicable law.  The decision of the
arbitrator shall be final and binding and enforceable in any court of competent
jurisdiction.  The parties further agree,
notwithstanding the foregoing, that (i) except as provided in this Section 12,
the Federal 

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                                                Arbitration
Act shall govern the interpretation and enforcement of this Agreement, (ii) the
procedural protections and requirements of the California Arbitration Act,
Section 1280 et seq. of the California Code of
Civil Procedure, will apply to any arbitration proceedings hereunder; (iii) the
Company shall pay any costs and expenses that the Executive would not otherwise
have incurred if the dispute had been adjudicated in a court of law, rather
than through arbitration, provided, however, that if either party prevails on a
statutory claim that affords the prevailing party an award of attorney’s fees,
the arbitrator may award reasonable attorney’s fees to the prevailing party, consistent
with applicable law; and (iv) any hearing must be transcribed by a court
reporter and any decision of the arbitrator must be set forth in writing,
consistent with the applicable state or federal law and supported by essential
findings of fact and conclusion of law. 
The provisions of this Section 12 shall survive the termination or
revocation of this Agreement.  The
parties acknowledge and agree that any claims by the Executive for Worker’s
Compensation or unemployment compensation benefits are not covered by this
Agreement.

13.                                 Miscellaneous.

(a)                                  Modification
and Waiver.  Except as otherwise
specifically provided in this Agreement, no provision of this Agreement may be
modified, waived or discharged unless such waiver, modification or discharge is
agreed to in writing and signed by both the Company and the Executive.  No waiver at any time by either party to this
Agreement of any breach by the other party hereto of, or failure to comply
with, any provision hereof shall be deemed a waiver of similar or dissimilar
provisions or conditions at the same or at any prior or similar time.

(b)                                 Entire
Agreement.  No agreements or
representations, oral or otherwise, express or implied, with respect to the
subject matter hereof have been made by either party which are not expressly
set forth in this Agreement.  This
Agreement supersedes any and all prior agreements between the parties and/or
any of their affiliates with respect to the subject matter hereof.

(c)                                  Governing
Law.  This Agreement and the legal
relations thus created between the parties hereto shall be governed by and
construed under and in accordance with the internal laws of the State of
California.

(d)                                 Severability.  The invalidity or unenforceability of any
provision of this Agreement shall not affect the validity or enforceability of
any other provision of this Agreement, which shall remain in full force and
effect.

(e)                                  Termination
of Old Severance Agreement.  The Old
Severance Agreement is hereby amended, restated and superseded in its entirety
as of the date hereof.

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14.                                 Definitions.

(a)                                  “Cause”
shall mean (1) the willful and continued failure by the Executive to perform
his duties with the Company or follow reasonable and lawful directives of the
Board (including any material breach of the Company’s or any subsidiary’s Code
of Conduct or other corporate policies), (2) the Executive’s conviction
of, or entry of a plea of guilty or nolo contendere to, a felony or other crime
involving moral turpitude, (3) the commission by the Executive of any act of
theft, embezzlement or fraud in connection with his employment with the
Company, (4) any material breach by the Executive of any employment or other
agreement between the Executive and the Company or any subsidiary of the
Company, (5) any conflict of interest between the Executive and the Company or
any subsidiary of the Company that, in the Board’s determination,
inappropriately affects the Executive’s ability to carry on the Executive’s
normal duties as an employee of the Company or any subsidiary of the Company or
(6) the Executive’s appropriation (or attempted appropriation) of a
material business opportunity of the Company, including attempting to secure or
securing from anyone other than the Company any personal profit without the
Company’s consent in connection with any transaction entered into on behalf of
the Company; provided, however, that, on and after the occurrence of a Change
in Control, Cause shall be deemed not to exist until the Executive has first
been (1) supplied with notice from the Company setting forth the Board’s
finding of Cause, (2) provided with the opportunity to appear before the Board
to dispute the Board’s findings of Cause or present evidence that the facts
giving rise to the finding of Cause have been cured and (3) following a final
finding of Cause by the Board, provided with the opportunity to cure the facts
giving rise to such finding within ten (10) days of delivery of the written
notice of the Board’s final findings to the Executive by the Company.

For purposes of this definition of Cause, an act or
failure to act on the Executive’s part shall be considered “willful” if it was
done or omitted to be done by the Executive not in good faith, and shall not
include any act or failure to act resulting from any incapacity of the
Executive.

(b)                                 “Change
in Control” shall mean the occurrence of any of the following events:

(i)                                     securities
of the Company representing more than fifty point one percent (50.1%) of the
combined voting power of the then outstanding voting securities of the Company
are acquired by any person or group of persons acting in concert (within the
meaning of Section 14(d) of the Securities Exchange Act of 1934) other than (x)
the Company, a direct or indirect subsidiary or parent of the Company, or an
employee benefit plan or trust established by 

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                                                the
Company, or (y) Oaktree, GSC or any of their respective affiliates; or

(ii)                                  a
merger or consolidation is consummated in which the Company is a constituent
corporation and which results in less than 50 percent of the outstanding voting
securities of the surviving or resulting entity being owned by the then
existing stockholders of the Company (in the aggregate);

(iii)                               a
sale is consummated by the Company of substantially all of the Company’s assets
to a person or entity which is not (x) a direct or indirect subsidiary or
parent of the Company, or an employee benefit plan or trust established by the
Company, or (y) Oaktree, GSC or any of their respective affiliates; or

(iv)                              during
any period of two consecutive years, individuals who, at the beginning of such
period, constituted the Board (plus each additional director who was approved
by the vote of at least two-thirds of the directors then still in office
who were directors at the beginning of such two-year period or whose
appointment, election or nomination for election was previously so approved or
recommended) cease, for any reason, to constitute at least a majority thereof.

Notwithstanding the foregoing, a “Change in Control”
shall not be deemed to have occurred by virtue of the consummation of any
transaction or series of integrated transactions immediately following which
the holders of the common stock of the Company immediately prior to such
transaction or series of transactions continue to have substantially the same
proportionate ownership in an entity which owns all or substantially all of the
assets of the Company immediately following such transaction or series of
transactions.

(c)                                  “Code”
shall mean the Internal Revenue Code of 1986, as amended.

(d)                                 “Company”
shall mean Cherokee International Corporation or any successor thereto.

(e)                                  “Disability”
shall mean a physical or mental illness which, in the judgment of the Company
after consultation with the licensed physician attending Executive, impairs
Executive’s ability to substantially perform his duties as an employee and as a
result of which the Executive shall have been unable to perform his duties for
the Company on a full-time basis for a period of 180 consecutive days.

(f)                                    “Good
Reason” shall mean the occurrence of one or more of the following events
without Executive’s prior written consent (except as a result of a prior
termination):

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(i)                                     any
material change in the Executive’s status, title, authorities or
responsibilities (including reporting responsibilities) which represents a
demotion from Executive’s status, title, position or responsibilities
(including reporting responsibilities) immediately prior to the Change in
Control; the assignment to the Executive of any duties or work responsibilities
which are materially inconsistent with Executive’s status, title, position or
work responsibilities immediately prior to the Change in Control, or which are
materially inconsistent with the status, title, position or work
responsibilities of a similarly situated senior officer; or any removal of the
Executive from, or failure to appoint, elect, reappoint or reelect the
Executive to, any of such positions, except in the event of Executive’s death
or Disability and other than any such change primarily attributable to the fact
the Company may no longer be a public company;

(ii)                                  any
decrease in Executive’s annual Base Salary or target annual incentive award
opportunity except for across-the-board salary reductions similarly affecting
all senior officers of the Company;

(iii)                               the
reassignment of the Executive to a location more than twenty-five (25) miles
from Executive’s then current work location;

(iv)                              the
failure by the Company to continue in effect any incentive, bonus or other
compensation plan in which the Executive participates, unless an equitable
arrangement (embodied in an ongoing substitute or alternative plan) has been
made with respect to the failure to continue such plan, or the failure by the
Company to continue Executive’s participation therein, or any action by the
Company which would directly or indirectly materially reduce his participation
therein or reward opportunities thereunder; provided, however, that the
Executive continues to meet substantially all eligibility requirements thereof;

(v)                                 the
failure by the Company to continue in effect any employee benefit plan
(including any medical, hospitalization, life insurance, disability or other
group benefit plan in which the Executive participates), or any material fringe
benefit or perquisite enjoyed by the Executive unless an equitable arrangement
(embodied in an ongoing substitute or alternative plan) has been made with
respect to the failure to continue such plan, or the failure by the Company to
continue Executive’s participation therein, or any action by the Company which
would directly or indirectly materially reduce Executive’s participation
therein or reward opportunities thereunder, or the failure by the Company to
provide the Executive with the benefits to which the Executive is entitled as
an employee 

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                                                of
the Company; provided, however, that the Executive continues to meet
substantially all eligibility requirements thereof,

(vi)                              any
purported termination of Executive’s employment for Cause which is not
effective; or

(vii)                           the
failure of the Company to obtain a satisfactory agreement from any successor or
assignee of the Company to fully assume and agree to perform this Agreement;

provided, however, that Good Reason shall be deemed not to exist until
the Company has first been (1) supplied with notice from the Executive setting
forth the Executive’s assertion of Good Reason and (2) provided with the
opportunity to cure the facts giving rise to such assertion within ten (10)
days of delivery of the written notice by the Executive to the Company.

(g)                                 “GSC”
shall mean, collectively, GSC Recovery II, L.P., GSC Recovery IIA, L.P., GSC
Partners CDO Funds, Limited and GSC Partners CDO Fund II, Limited.

(h)                                 “Oaktree”
shall mean, collectively, OCM Principal Opportunities Fund, L.P., OCM/GFI Power
Opportunities Fund, L.P. and GFI Two LLC.

IN WITNESS WHEREOF, the
Company has caused this Agreement to be executed by its duly authorized
officer, and the Executive has executed this Agreement, as of the date set
forth below.

	
  EXECUTIVE

  	
   

  	
  CHEROKEE INTERNATIONAL CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  /s/ LINSTER W. FOX

  	
   

  	
  /s/ JEFFREY M.
  FRANK

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date: December
  5, 2006

  	
   

  	
  By:

  	
   

  	
  Jeffrey M. Frank

  
	
   

  	
   

  	
  Its:

  	
   

  	
  President/ Chief Executive Officer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Date:

  	
   

  	
  December 5, 2006

  

 

 12EXHIBIT
10.3

AMENDED AND RESTATED SEVERANCE AGREEMENT

This Amended and Restated Severance Agreement (the “Agreement”) is
entered into by and between Cherokee International Corporation (the “Company”),
a Delaware corporation, and Mukesh Patel (the “Executive”).

R E C I T A L S

WHEREAS, the Executive and the Company have previously entered into
that certain severance agreement dated June 16, 2005 (the “Old Severance
Agreement”); and

WHEREAS, the Executive and the Company desire to amend and restate in
its entirety the Old Severance Agreement.

NOW, THEREFORE, in consideration of the foregoing premises and the
mutual agreements and covenants herein contained, the Company and the Executive
agree as follows:

1.                                       At
Will Employment.  The Executive’s
employment with the Company is currently on an at-will basis, meaning that
either the Executive or the Company may terminate the employment relationship
at any time for any reason or for no reason, and without further obligation or
liability, except as set forth in this Agreement.

2.                                       Term
of Agreement. This Agreement shall remain in effect for so long as the
Executive is employed as its Executive Vice President, Global Operations of the
Company (the “Term”).

3.                                       Severance
Payment. Subject to the Executive’s having executed and, if applicable, not
revoked, a release of claims reasonably satisfactory to the Company (the “Release
of Claims”), in the event the Executive’s employment is terminated by the
Company other than for Cause, the Executive shall be entitled to the following
(collectively, the “Severance Benefits”): 
(i) a cash payment, in lieu of any other severance payment pursuant to
any other plan or agreement of the Company or any subsidiary thereof to which
the Executive is otherwise entitled, of an amount equal to his then annual base
salary as in effect immediately prior to the date of termination (the “Severance
Payment”); (ii) the bonus that would have been due the Executive for the year
in which the Executive’s termination of employment occurs, calculated as if the
Company achieved financial performance for that year equal to that set forth in
the then most recent budget for that year approved by the Board of Directors of
the Company, prorated for the number of months worked in the fiscal year the
termination occurred (the “Bonus Payment”); (iii) continued medical,
hospitalization, life and other insurance benefits being provided to the
Executive and the Executive’s family at the date of termination, for a period
of 

 

                                                twelve
(12) months after the date of termination; provided, however, that the Company
shall have no obligation to continue to provide the Executive with such
insurance benefits for any periods after the date the Executive obtains
comparable benefits (with no significant pre existing condition exclusions) as
a result of the Executive’s employment in a new position; and (iv) to the
extent permitted under Section 409A of the Code, a lump sum settlement of all
deferred compensation arrangements. 
Subject to Section 5, the Severance Payment and the Bonus Payment shall
be payable in a lump sum within 10
business days following the effective date of the Release of Claims.

The Executive shall not
be entitled to the Severance Benefits if (i) the Executive’s employment is
terminated by the Company for Cause or as a result of the Executive’s death or
Disability or (ii) the Executive terminates his employment with the Company for
any reason.

4.                                       Confidentiality and Related Covenants

(a)                                  Confidentiality.  The Executive shall not, at any time
hereafter, disclose to any person, firm or corporation or otherwise use any
confidential or proprietary information (“Confidential Information”) relating
to the Company, its constituent partners, their respective parents,
subsidiaries, and affiliates, including Confidential Information relating to
its customers, suppliers, market arrangements or methods of operations,
employees, trade practices, trade secrets, know how, and other matters that are
not publicly known outside the Company, 
except to the extent necessary to conduct the business of the Company,
or to comply with law or the valid order of a governmental agency or court of
competent jurisdiction. Without limiting the generality of the foregoing, the
parties hereto acknowledge and agree that all information not otherwise generally
known to the public relating to each of (i) this Agreement, or (ii) the
Company, any constituent partner of the Company or any of their respective
parents, subsidiaries or affiliates, is Confidential Information and is not to
be disclosed to any persons or entities or otherwise used, except to the extent
necessary to conduct the business of the Company or to comply with law or the
valid order of a governmental agency or court of competent jurisdiction.

(b)                                 Rights
to Innovations.  Any invention, improvement,
design, development or discovery conceived, developed, invented or made by the
Executive, alone or with others, during his employment hereunder and applicable
to the business of the Company, its parents, subsidiaries or affiliates shall
become the sole and exclusive property of the Company. The Executive shall (i)
disclose the same completely and promptly to the Company, (ii) execute all
documents requested by the Company in order to vest in the Company the entire
right, title and interest, in and to the same, (iii) execute all documents
required by the Company for the filing, and prosecuting of such applications
for patents, copyrights and/or trademarks, 

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                                                which
the Company, in its sole discretion, may desire to prosecute, and (iv) provide
to the Company all assistance it may reasonably require including, without
limitation, the giving of testimony in any suit, action or proceeding, in order
to obtain, maintain and protect the Company’s rights therein and thereto.

(c)                                  Non
Solicitation.  The Executive, except
within the course of the good faith performance of his duties hereunder, shall
not at any time while he is in the employ of the Company, any constituent
partner of the Company or any of their respective parents, subsidiaries, or
affiliates, and for 12 months following the termination of his employment for
any reason (the “Restricted Period”), solicit, recruit, request, cause, induce
or encourage any individual who is then employed by the Company, any
constituent partner of the Company or any of their respective parents,
subsidiaries or affiliates to leave the employment of or terminate the
relationship with the Company, its constituent partners, their respective
parents, subsidiaries, and affiliates, for any reason and/or otherwise
encourage to perform work (as an employee, independent contractor or otherwise)
for any entity or person (including the Executive) that directly or indirectly
competes with the Company at any time during the Restricted Period and/or whose
business is or includes the design, manufacture and marketing of power supplies
for the datacom, telecom, medical, process-control and other related industries
(or any portion thereof).

(d)                                 Enforcement.  The Executive acknowledges that as a
high-level executive of the Company, the Executive provides services of a
special and unique character that are of a peculiar value to the Company, the
loss of which may not be reasonably or adequately compensated for by damages in
an action at law, and any breach or threatened breach by the Executive of any
provision of this Section 4 shall cause the Company irreparable harm which
cannot be remedied solely by damages. 
Specifically, the Executive acknowledges that (a) the provisions of this
Section 4 are reasonable and necessary to protect the legitimate interests of
the Company and/or any of its related entities, and (b) any violation of this
Section 4 will result in irreparable injury to the Company and/or any of its
related entities, the exact amount of which will be difficult to ascertain, and
that the remedies at law for any such violation would not be reasonable or
adequate compensation to the Company and/or any of its related entities for
such a violation.  Accordingly, the
Executive agrees that in the event of a breach or threatened breach by the Executive
of any of the provisions of this Section 4, the Company shall be entitled to
injunctive relief restraining the Executive and any business, firm,
partnership, individual, corporation or entity participating in such breach or
threatened breach.  Nothing herein shall
be construed as prohibiting the Company from pursuing any other remedies
available at law or in equity for such breach or threatened breach, including
the recovery of damages and the immediate termination of the Company’s duties
under this Agreement.

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(e)                                  Modification
of Restrictions. It is hereby further agreed that if any court of competent
jurisdiction shall determine that the restrictions imposed in this Section 4
are unreasonable (including, but not limited to, time and scope of coverage of
this Section 4), the parties hereto hereby agree to any restrictions that such
court would find to be reasonable under the circumstances.

5.                                       Withholding;
Section 409A.  The Company shall make such deductions and
withhold such amounts from each payment made to the Executive hereunder as may
be required from time to time by law, governmental regulation or order.  If required by Section 409A of the
Code, all or part of any payment made to the Executive hereunder may be delayed
for a period of six months.

6.                                       Attorneys’
Fees and Costs.  The Company shall
pay to any law firm chosen by the Executive, all reasonable fees and costs
incurred by the Executive, in an amount
not to exceed $30,000 in the aggregate in enforcing the terms of this
Agreement.  Said fees shall be paid, as
incurred, directly to the law firm chosen by the Executive as invoiced by the
law firm.

7.                                       No
Mitigation.  The Executive shall not
be required to mitigate the amount of any payment provided for in this
Agreement by seeking other employment or otherwise.

8.                                       Successors.  Any successor to the Company (whether direct
or indirect, by purchase, merger, consolidation or otherwise) or to all or
substantially all of the business and/or assets of the Company shall assume all
obligations of the Company under this Agreement and all rights of the Company
under this Agreement shall inure to such successor, in the same manner and to
the same extent that the Company would be required to perform and be entitled
to the benefits of this Agreement if no such succession had taken place.

9.                                       Notices.  All notices and other communications under
this Agreement shall be in writing and delivered to the addresses set forth
below and shall be effective when delivered, if hand delivered; three (3) days
after mailing by first class mail, certified or registered with return receipt
requested; and 24 hours after transmission of a fax :

	
  If to the Company:

  	
   

  	
  Cherokee International Corporation

  
	
   

  	
   

  	
  2841 Dow Avenue

  
	
   

  	
   

  	
  Tustin, CA 92780

  
	
   

  	
   

  	
  Attention: Chairman of the Board

  
	
   

  	
   

  	
   

  
	
  If to the Executive:

  	
   

  	
  Mukesh Patel

  
	
   

  	
   

  	
  15 Rocky Mountain

  
	
   

  	
   

  	
  Coto de Caza, CA 92679

  

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Either party may change such party’s address for
notices by notice duly given pursuant hereto.

10.                                 Arbitration.  The Company and the Executive agree that any
dispute arising as to the parties’ rights and obligations hereunder shall, at
the election and upon written demand of either party, be submitted to
arbitration before a single neutral arbitrator in Orange County, California and
shall be administered by the Judicial Arbitration Mediation Service (“JAMS”)
pursuant to its Employment Arbitration Rules and Procedures and subject to JAMS
Policy on Employment Arbitration Minimum Standards or Procedural Fairness (“Rules”),
which Rules shall be modified by the arbitrator to the extent necessary to
comply with applicable law.  The
arbitrator shall not have authority to add to, modify, change or disregard any
lawful terms of this Agreement or to issue an award that is contrary to applicable
law.  The decision of the arbitrator
shall be final and binding and enforceable in any court of competent
jurisdiction.  The parties further agree,
notwithstanding the foregoing, that (i) except as provided in this Section 10,
the Federal Arbitration Act shall govern the interpretation and enforcement of
this Agreement, (ii) the procedural protections and requirements of the
California Arbitration Act, Section 1280 et seq. of the
California Code of Civil Procedure, will apply to any arbitration proceedings
hereunder; (iii) the Company shall pay any costs and expenses that the
Executive would not otherwise have incurred if the dispute had been adjudicated
in a court of law, rather than through arbitration, provided, however, that if
either party prevails on a statutory claim that affords the prevailing party an
award of attorney’s fees, the arbitrator may award reasonable attorney’s fees
to the prevailing party, consistent with applicable law; and (iv) any hearing
must be transcribed by a court reporter and any decision of the arbitrator must
be set forth in writing, consistent with the applicable state or federal law
and supported by essential findings of fact and conclusion of law.  The provisions of this Section 10 shall
survive the termination or revocation of this Agreement.  The parties acknowledge and agree that any
claims by the Executive for Worker’s Compensation or unemployment compensation
benefits are not covered by this Agreement.

11.                                 Miscellaneous.

(a)                                  Modification
and Waiver.  Except as otherwise
specifically provided in this Agreement, no provision of this Agreement may be
modified, waived or discharged unless such waiver, modification or discharge is
agreed to in writing and signed by both the Company and the Executive.  No waiver at any time by either party to this
Agreement of any breach by the other party hereto of, or failure to comply
with, any provision hereof shall be deemed a waiver of similar or dissimilar
provisions or conditions at the same or at any prior or similar time.

(b)                                 Entire
Agreement.  No agreements or
representations, oral or otherwise, express or implied, with respect to the
subject matter hereof have been made by either party which are not expressly
set forth in this Agreement.  

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                                                This
Agreement supersedes any and all prior agreements between the parties and/or
any of their affiliates with respect to the subject matter hereof.

(c)                                  Governing
Law.  This Agreement and the legal
relations thus created between the parties hereto shall be governed by and
construed under and in accordance with the internal laws of the State of
California.

(d)                                 Severability.  The invalidity or unenforceability of any
provision of this Agreement shall not affect the validity or enforceability of
any other provision of this Agreement, which shall remain in full force and
effect.

(e)                                  Termination
of Old Severance Agreement.  The Old
Severance Agreement is hereby amended, restated and superseded in its entirety
as of the date hereof.

12.                                 Definitions.

(a)                                  “Cause”
shall mean (1) the willful and continued failure by the Executive to perform
his duties with the Company or follow reasonable and lawful directives of the
Board (including any material breach of the Company’s or any subsidiary’s Code
of Conduct or other corporate policies), (2) the Executive’s conviction
of, or entry of a plea of guilty or nolo contendere to, a felony or other crime
involving moral turpitude, (3) the commission by the Executive of any act of
theft, embezzlement or fraud in connection with his employment with the
Company, (4) any material breach by the Executive of any employment or other
agreement between the Executive and the Company or any subsidiary of the
Company, (5) any conflict of interest between the Executive and the Company or
any subsidiary of the Company that, in the Board’s determination,
inappropriately affects the Executive’s ability to carry on the Executive’s
normal duties as an employee of the Company or any subsidiary of the Company or
(6) the Executive’s appropriation (or attempted appropriation) of a
material business opportunity of the Company, including attempting to secure or
securing from anyone other than the Company any personal profit without the
Company’s consent in connection with any transaction entered into on behalf of
the Company.

For purposes of this definition of Cause, an act or
failure to act on the Executive’s part shall be considered “willful” if it was
done or omitted to be done by the Executive not in good faith, and shall not
include any act or failure to act resulting from any incapacity of the
Executive.

(b)                                 “Code”
shall mean the Internal Revenue Code of 1986, as amended.

(c)                                  “Company”
shall mean Cherokee International Corporation or any successor thereto.

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(d)                                 “Disability”
shall mean a physical or mental illness which, in the judgment of the Company
after consultation with the licensed physician attending Executive, impairs
Executive’s ability to substantially perform his duties as an employee and as a
result of which the Executive shall have been unable to perform his duties for
the Company on a full-time basis for a period of 180 consecutive days.

IN WITNESS WHEREOF, the Company has caused this Agreement to be
executed by its duly authorized officer, and the Executive has executed this
Agreement, as of the date set forth below.

	
  EXECUTIVE

  	
   

  	
  CHEROKEE INTERNATIONAL CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  /s/ MUKESH PATEL

  	
   

  	
  /s/ LINSTER W.
  FOX

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date: December
  5, 2006

  	
   

  	
  By:

  	
   

  	
  Linster W. Fox

  
	
   

  	
   

  	
  Its:

  	
   

  	
  Executive Vice President/ Chief Financial Officer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Date:

  	
   

  	
  December 5, 2006

  

 

 7

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