Document:

Exhibit 10.3

 

 

AMENDED AND RESTATED

 

POWER-ONE, INC.

2004 STOCK INCENTIVE PLAN

 

ELIGIBLE DIRECTOR

STOCK UNIT AWARD AGREEMENT

 

THIS STOCK UNIT AWARD AGREEMENT (this “Agreement”) is dated as of [·] by and between Power-One, Inc., a Delaware corporation (the “Corporation”) and [·] (the “Director”).

 

W I T N E S S E T H

 

WHEREAS, pursuant to the Power-One, Inc. Amended and Restated 2004 Stock Incentive Plan (the “Plan”), the Corporation has granted to the Director effective as of the date hereof (the “Award Date”), a credit of stock units under the Plan (the “Stock Unit Award” or “Award”), upon the terms and conditions set forth herein and in the Plan.

 

NOW THEREFORE, in consideration of services rendered and to be rendered by the Director, and the mutual promises made herein and the mutual benefits to be derived therefrom, the parties agree as follows:

 

1.     Defined Terms.   Capitalized terms used herein and not otherwise defined herein shall have the meaning assigned to such terms in the Plan.

 

2.     Grant.   Subject to the terms of this Agreement, the Corporation hereby grants to the Director a Stock Unit Award with respect to an aggregate of [·] stock units (subject to adjustment as provided in Section 7.1 of the Plan) (the “Stock Units”). As used herein, the term “stock unit” shall mean a non-voting unit of measurement which is deemed for bookkeeping purposes to be equivalent to one outstanding share of the Corporation’s Common Stock (subject to adjustment as provided in Section 7.1 of the Plan) solely for purposes of the Plan and this Agreement. The Stock Units shall be used solely as a device for the determination of the payment to eventually be made to the Director if such Stock Units vest pursuant to Section 3. The Stock Units shall not be treated as property or as a trust fund of any kind.

 

3.     Vesting.   Subject to Sections 8 and 9 below, the Award shall vest and become nonforfeitable with respect to one hundred percent (100%) of the total number of Stock Units (subject to adjustment under Section 7.1 of the Plan) on the earlier to occur of (i) the first anniversary of the date of this Award, or (ii) one day prior to the date of the next Annual Meeting of Stockholders following the date of this Award.

 

4.     Continuance of Service.   The vesting schedule requires continued service through the applicable vesting date as a condition to the vesting under the Award and the rights and benefits under this Agreement. Partial service, even if substantial, during the vesting period will not entitle the Director to any proportionate vesting or avoid or mitigate a termination of rights and benefits upon or following a termination of services as provided in Section 8 below or under the Plan.

 

Nothing contained in this Agreement or the Plan constitutes a service commitment by the Corporation, affects the Director’s status as a Director who serves pursuant to election by the stockholders of the Corporation, confers upon the Director any right to remain in service to the Corporation or any Subsidiary, interferes in any way with the right of the stockholders at any time to replace Director by election of other director(s), or affects the right of the Corporation to increase or decrease the Director’s other compensation or benefits. Nothing in this paragraph, however, is intended to adversely affect any independent contractual right of the Director without his consent thereto.

 

5.     Dividend and Voting Rights.

 

(a)    Limitations on Rights Associated with Units.   The Director shall have no rights as a stockholder of the Corporation, no dividend rights (except as expressly provided in Section 5(b) with

 

 

respect to Dividend Equivalent Rights) and no voting rights, with respect to the Stock Units and any shares of Common Stock underlying or issuable in respect of such Stock Units until such shares of Common Stock are actually issued to and held of record by the Director. No adjustments will be made for dividends or other rights of a holder for which the record date is prior to the date of issuance of the stock certificate.

 

(b)    Dividend Equivalent Rights Distributions.   As of any date that the Corporation pays a cash dividend on its Common Stock, the Corporation shall pay Director an amount equal to the per share cash dividend paid by the Corporation on its Common Stock on such date multiplied by the number of Stock Units remaining subject to this Award as of the related dividend payment record date. No such payment shall be made with respect to any Stock Units which, as of such record date, have either been paid pursuant to Section 7 or terminated pursuant to Section 8.

 

6.     Restrictions on Transfer.   Neither the Stock Unit Award, nor any interest therein or amount or shares payable in respect thereof may be sold, assigned, transferred, pledged or otherwise disposed of, alienated or encumbered, either voluntarily or involuntarily. The transfer restrictions in the preceding sentence shall not apply to (a) transfers to the Corporation, or (b) transfers by will or the laws of descent and distribution.

 

7.     Timing and Manner of Payment of Stock Units.   On or as soon as administratively practical following the vesting of the total Award per Section 3 above, the Corporation shall deliver to the Director a number of shares of Common Stock equal to the number of Stock Units subject to this Award that vest on the applicable vesting date, unless such Stock Units terminate prior to the given vesting date pursuant to Section 8 and in any event subject to Section 9. The Director shall have no further rights with respect to any Stock Units that are so paid or that are terminated pursuant to Section 8.

 

8.     Effect of Termination of Service.   Except as provided in Sections 7.2 or 7.3 of the Plan, the Director’s Stock Units shall terminate to the extent such units have not become vested prior to the date the Director ceases to serve as a director of the Corporation, regardless of the reason for the termination of the Director’s service to the Corporation, whether with or without cause, voluntarily or involuntarily. If any Stock Units are terminated hereunder, such unvested Stock Units shall automatically terminate and be cancelled as of the applicable termination date without payment of any consideration by the Company and without any other action by the Director, or the Director’s Beneficiary or Personal Representative, as the case may be.

 

9.     Adjustments Upon Specified Events; Acceleration Upon a Corporate Transaction.   Upon the occurrence of certain events relating to the Corporation’s stock contemplated by Section 7.1 of the Plan, the Committee shall make adjustments if appropriate in the number of Stock Units and the number and kind of securities that may be issued in respect of the Stock Unit Award. Notwithstanding anything herein to the contrary, the vesting of the Stock Units shall fully accelerate upon the occurrence of any merger, combination, consolidation, or other reorganization; any exchange of Common Stock or other securities of the Corporation; a sale of all or substantially all the business, stock or assets of the Corporation; a dissolution of the Corporation; or any other event in which the Corporation does not survive (or does not survive as a public company in respect of its Common Stock).

 

10.   Tax Withholding.   Upon any payment of dividend equivalents and/or the distribution of shares of the Common Stock in respect of the Stock Units, the Corporation shall have the right at its option to (a) require the Director to pay or provide for payment in cash of the amount of any taxes that the Corporation may be required to withhold with respect to such payment and/or distribution, or (b) deduct from any amount payable to the Director the amount of any taxes which the Corporation or the Subsidiary may be required to withhold with respect to such payment and/or distribution. In any case where a tax is required to be withheld in connection with the delivery of shares of Common Stock under this Award Agreement, the Committee may, in its sole discretion, direct the Corporation to reduce the number of shares to be delivered by (or otherwise reacquire) the appropriate number of shares, valued at their then Fair Market Value, to satisfy such withholding obligation.

 

11.   Notices.   Any notice to be given under the terms of this Agreement shall be in writing and addressed to the Corporation at its principal office to the attention of the Secretary, and to the Director at the Director’s last address reflected on the Corporation’s records, or at such other address as either party

 

 

may hereafter designate in writing to the other. Any such notice shall be given only when received, but if the Director is no longer serving as a director of the Company, shall be deemed to have been duly given by the Corporation when enclosed in a properly sealed envelope addressed as aforesaid, registered or certified, and deposited (postage and registry or certification fee prepaid) in a post office or branch post office regularly maintained by the United States Government.

 

12.   Plan.   The Award and all rights of the Director under this Agreement are subject to, and the Director agrees to be bound by, all of the terms and conditions of the provisions of the Plan, incorporated herein by reference. In the event of a conflict or inconsistency between the terms and conditions of this Agreement and of the Plan, the terms and conditions of the Plan shall govern. The Director agrees to be bound by the terms of the Plan and this Agreement. The Director acknowledges having read and understanding the Plan, the Prospectus for the Plan, and this Agreement. Unless otherwise expressly provided in other sections of this Agreement, provisions of the Plan that confer discretionary authority on the Committee do not (and shall not be deemed to) create any rights in the Director unless such rights are expressly set forth herein or are otherwise in the sole discretion of the Committee so conferred by appropriate action of the Committee under the Plan after the date hereof.

 

13.   Entire Agreement.   This Agreement and the Plan together constitute the entire agreement and supersede all prior understandings and agreements, written or oral, of the parties hereto with respect to the subject matter hereof. The Plan and this Award Agreement may be amended pursuant to Section 8.6 of the Plan. Such amendment must be in writing and signed by the Corporation. The Corporation may, however, unilaterally waive any provision hereof in writing to the extent such waiver does not adversely affect the interests of the Director hereunder, but no such waiver shall operate as or be construed to be a subsequent waiver of the same provision or a waiver of any other provision hereof.

 

14.   Limitation on Director’s Rights.   Participation in this Plan  confers no  rights or interests other than as herein provided. This Agreement creates only a contractual obligation on the part of the Company as to amounts payable and shall not be construed as creating a trust. Neither the Plan nor any underlying program, in and of itself, has any assets. The Director shall have only the rights of a general unsecured creditor of the Corporation (or applicable Subsidiary) with respect to amounts credited and benefits payable in cash, if any, with respect to the Stock Units, and rights no greater than the right to receive the Common Stock (or equivalent value) as a general unsecured creditor with respect to Stock Units, as and when payable thereunder.

 

15.   Counterparts.   This Agreement may be executed simultaneously in any number of counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument.

 

16.   Section Headings.   The section headings of this Agreement are for convenience of reference only and shall not be deemed to alter or affect any provision hereof.

 

17.   Governing Law.   This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of Delaware without regard to conflict of law principles thereunder.

 

 

IN WITNESS WHEREOF, the Corporation has caused this Agreement to be executed on its behalf by a duly authorized officer and the Director has hereunto set his or her hand as of the date and year first above written.

 

	
POWER-ONE, INC.,
    	
DIRECTOR
    
	
a Delaware corporation
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Signature
    
	
Print   Name:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Its:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Print NameExhibit 10.4

 

 

POWER-ONE, INC.

AMENDED AND RESTATED

2004 STOCK INCENTIVE PLAN

 

EMPLOYEE STOCK APPRECIATION RIGHT AGREEMENT

 

THIS AGREEMENT, dated as of [·], 2011 (the “Agreement”), between Power One, Inc., a Delaware corporation (the “Company”), and                    (“Employee”).

 

R E C I T A L

 

WHEREAS, pursuant to the Power-One Inc., Amended and Restated 2004 Stock Incentive Plan  (the “Plan”), the Company has granted to Employee effective as of [·], 2011 (the “Award Date), an award of stock appreciation rights (“SARs”) with respect to [·] Shares upon the terms and conditions set forth herein and in the Plan.

 

NOW, THEREFORE, in consideration of the mutual promises and covenants made herein and the mutual benefits to be derived herefrom, the parties agree as follows:

 

1.                                       Defined Terms.  Capitalized terms used herein and not otherwise defined herein shall have the meaning assigned to such terms in the Plan.

 

2.                                       Grant of SARs.  This Agreement evidences the Company’s grant to Employee of SARs, on the terms and conditions set forth herein and in the Plan, with respect to [·] Shares with a base price (the “Base Price”) of $[·] per share.  The SARs will expire on the tenth anniversary of the date of this Agreement (the “Expiration Date”).

 

3.                                       Consideration to the Company.  In consideration of the granting of the SARs by the Company, Employee agrees to render faithful and efficient services to the Company, with such duties and responsibilities as the Company shall from time to time prescribe.  Nothing contained in this Agreement or in any other documents related to the Plan shall confer upon Employee any right to continue in the employ of the Company or constitute any contract of employment, or interfere in any way with the right of the Company to reduce such person’s compensation or other benefits or to terminate the employment of Employee, with or without Cause.

 

4.                                       Exercisability of SARs.  Except as earlier permitted by or pursuant to Section 7 of the Plan or by resolution of the Committee adopted after the date hereof, the SARs shall become exercisable in installments as to one-third (33.33%) of the total number of Shares set forth in paragraph 2 hereof (subject to adjustment) on each of the first, second, and third anniversaries of the Award Date.

 

5.                                       Continuing Right to Purchase Cumulatively.  If Employee does not exercise all or any part of the SARs to which Employee is entitled on the vesting  date, Employee has the right cumulatively thereafter to exercise the SARs not so exercised and such right shall continue until the SARs terminate or expire.  The SARs shall only be exercisable in respect of whole Shares, and fractional Share interests shall be disregarded.  At least 100 SARs must be exercised at one time unless the number exercised is the total number at the time exercise.

 

6.                                       Method of Exercise of SARs and Settlement of SARs.

 

(a)  The SARs shall be exercisable by the delivery to the Secretary of the Corporation (or such other person as the Administrator may require pursuant to such administrative exercise procedures as the Administrator may implement from time to time) of:  (i) a written notice stating the number of SARs to be exercised or by the completion of such other administrative exercise procedures as

 

 

the Administrator may require from time to time; (ii) any written statements or agreements required pursuant to Section 8.1 of the Plan; and (iii) satisfaction of the tax withholding provisions of Section 8.5 of the Plan.

 

(b)  Upon the exercise of the SARs and the attendant surrender of an exercisable portion of the SARs, Employee will be entitled to receive payment in cash of an amount (subject to the tax withholding provisions of Section 6(a), above) determined by multiplying: (i) the difference (but not less than zero) obtained by subtracting the Base Price of the SARs being exercised from the per-share Fair Market Value of the Common Stock as of the date of exercise, by the number of SARs being exercised.  The Employee shall have no further rights with respect to any SARs that are paid or that terminate pursuant to the terms of this Agreement.

 

7.                                       Termination of Employment.  The SARs and all other rights hereunder, to the extent not exercised, will terminate and become null and void upon Employee’s termination of employment, except that:

 

(a)  if Employee terminates for any reason other than death, Disability or for Cause, Employee has 90 days after the date of termination to exercise the SARs to the extent the SARs were exercisable on the date of termination;

 

(b)  if Employee is terminated for Cause, the SARs shall lapse immediately upon Employee’s termination of employment;

 

(c)  if Employee terminates as a result of a Disability, or if Employee suffers a Disability within 90 days of a termination of employment under subsection (a) above, Employee or Employee’s personal representative may exercise the SARs, to the extent the SARs were exercisable on the date of Employee’s termination of employment, within a period of 180 days from the date of Disability (or, if earlier, termination of employment);

 

(d)  if Employee dies while in the employ of the Company, or within 90 days after a termination described in subsection (a) or (c) of this Section 7, then Employee’s beneficiary may exercise the SARs, to the extent the SARs were exercisable on the date of Employee’s termination of employment, within a period of 180 days after the date of Employee’s death (or, if earlier, Employee’s termination of employment);

 

provided, however, that in no event may the SARs be exercised by anyone under this Section 7 or otherwise after the Expiration Date.  In other words, in no event may the SARs be exercised by anyone under this Section 7 or otherwise after the Expiration Date.

 

8.                                       Termination of SARs Under Certain Events.  As permitted by Section 7.2 of the Plan, the Administrator retains the right to terminate the SARs to the extent not previously exercised upon an event or transaction in which the Company does not survive.

 

9.                                       Non-Transferability of SARs.  The SARs and any other rights of Employee under this Agreement or the Plan are nontransferable.

 

10.                                 Assignments.  This Agreement and all of the provisions hereof shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assignees.  Neither this Agreement nor any of the rights, interests or obligations hereunder shall be assigned by either party without the prior written consent of the other.

 

11.                                 Notices.  Any notice to be given under the terms of this Agreement shall be in writing and addressed to the Company at its principal office to the attention of the Secretary, and to Employee at the address given beneath Employee’s signature hereto, or at such other address as either party may hereafter designate in writing to the other.  Any such notice shall be deemed to have been duly given when enclosed in a properly sealed

 

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envelope addressed as aforesaid, registered or certified, and deposited (postage and registry or certification fee prepaid) in a post office or branch post office regularly maintained by the United States Government.

 

12.                                 Plan.  The SARs and all rights of Employee under this Agreement are subject to, and Employee agrees to be bound by, all of the terms and conditions of the provisions of the Plan, incorporated herein by this reference, to the extent such provisions are applicable to stock appreciation rights.  In the event of a conflict or inconsistency between the terms and conditions of this Agreement and of the Plan, the terms and conditions of the Plan shall govern.  Employee acknowledges receipt of a copy of the Plan and agrees to be bound by the terms thereof.  Unless otherwise expressly provided in other paragraphs of this Agreement, provisions of the Plan that confer discretionary authority on the Administrator do not (and shall not be deemed to) create any rights in Employee unless such rights are expressly set forth herein or are otherwise in the sole discretion of the Administrator so conferred by appropriate action of the Administrator under the Plan after the date hereof.

 

13.                                 Definitions

 

(a)  “Cause” means a determination by the Committee that the Participant: (a) has committed a material breach of the Participant’s duties and responsibilities (other than as a result of incapacity due to a total disability); or (b) has been convicted of a felony, or entered a plea of guilty or nolo contendere with respect to such a crime; or (c) has violated any fiduciary duty or duty of loyalty owed to the Company; or (d) has been generally incompetent or grossly negligent in the discharge of the Participant’s duties and responsibilities; or (e) has violated in any material respect any of the Company’s established employment policies in effect from time to time.

 

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IN WITNESS WHEREOF, the Company has caused this Agreement to be executed on its behalf by a duly authorized officer and Employee has hereunto set his or her hand.

 

 

	
THE COMPANY”
    	
 
    	
“THE EMPLOYEE”
    
	
 
    	
 
    	
 
    
	
Power One, Inc.
    	
 
    	
Accepted By:
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Date Accepted   On:
    	
 
    
	
By:   Tina D. McKnight
    	
 
    	
 
    	
 
    
	
Title:   Secretary & General Counsel
    	
 
    	
 
    
	
 
    	
 
    	
Address
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
						

 

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