Document:

Executive Officer Benefits Agreement

 Exhibit 10.8 
 POWER INTEGRATIONS, INC. 
 EXECUTIVE OFFICER BENEFITS AGREEMENT 
 THIS EXECUTIVE OFFICER BENEFITS AGREEMENT (the
“Agreement”) is made and entered into as of November 5, 2008 (the “Effective Date”), by and between POWER INTEGRATIONS, INC., a Delaware
corporation, (the “Company”) and BILL ROESCHLEIN (“Executive”). 
 RECITALS 
 A. Executive is an executive officer of the Company and
possesses valuable knowledge of the Company, its business and operations, and the markets in which the Company competes. 
 B. The Company
draws upon the knowledge, experience and advice of Executive in order to manage its business for the benefit of the Company’s stockholders. 
 C. The Board of Directors desires to supplement Executive’s employment arrangements so as to provide additional compensation and benefits to the Executive to encourage Executive to continue to devote his attention and dedication to the
Company and to create additional incentives to continue his employment with the Company. 
 AGREEMENT 
 THEREFORE, in consideration of the mutual agreements, covenants and considerations contained herein, the undersigned hereby agree
and acknowledge as follows: 
 1. The parties hereby agree to the terms hereof, including the terms set forth on Exhibit A hereto. With
reference to Section 1(f) of Exhibit A, the Compensation Committee of the Board of Directors has determined that during the first year of continuous service as an executive officer of the Company, Executive shall be entitled to the benefits
under this Agreement other than with respect to Sections 5, 6 and 7 of Exhibit A. 
 2. This Agreement may only be modified or amended
by a supplemental written agreement signed by Executive and the Company. 

 IN WITNESS WHEREOF, the undersigned have executed
this EXECUTIVE OFFICER BENEFITS AGREEMENT, intending to be legally bound as of the Effective Date. 
  

					
	COMPANY:	 	POWER INTEGRATIONS, INC.
			
		 	By:	 	 /s/    Balu Balakrishnan

		 		 	  Name: Balu Balakrishnan
		 		 	  Title:    President and CEO
		
		 	 Date:

		
	 EXECUTIVE:
	 	 /s/    Bill Roeschlein

		 	Bill Roeschlein
		
		 	 Date: 11/5/08

		
		 	Address for Notice: Executive’s home address as reflected in the records of the Company

  

 2. 

 EXHIBIT A 
 TERMS OF EXECUTIVE OFFICER BENEFITS AGREEMENT 
 Effective: November 5,
2008 
 1. Definitions. As used in this Agreement, unless the context requires a different meaning, the following terms shall have the
meanings set forth herein: 
 (a) “Cause” means: 
 (i) A material act of theft, dishonesty, fraud, intentional falsification of any employment or Company records or the commission of any criminal
act which impairs Executive’s ability to perform his/her duties under this Agreement; 
 (ii) A material improper disclosure of
the Company’s confidential, business or proprietary information by Executive; 
 (iii) Any action by Executive intentionally
causing or expected to cause material harm to the reputation and standing of the Company, or gross negligence or willful misconduct in the performance of Executive’s assigned duties (but not mere unsatisfactory performance); or 
 (iv) The Executive’s conviction (including any plea of guilty or nolo contendere) for a felony causing material harm to the reputation and
standing of the Company, as determined by the Company in good faith. 
 (b) “Change of Control” means:

 (i) Any “person” (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934,
as amended (the “Exchange Act”)), other than a trustee or other fiduciary holding securities of the Company under an employee benefit plan of the Company becomes the “beneficial owner” (as defined in Rule 13d-3 promulgated under
the Exchange Act), directly or indirectly, of securities of the Company representing 50% or more of (A) the outstanding shares of common stock of the Company or (B) the combined voting power of the Company’s then-outstanding
securities; 
 (ii) The Company is party to a merger or consolidation which results in the holders of voting securities of the
Company outstanding immediately prior thereto failing to continue to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) at least 50% of the combined voting power of the voting securities
of the Company or such surviving entity outstanding immediately after such merger or consolidation; 

 (iii) There occurs a change in the Board of Directors of the Company within a two-year period, as
a result of which fewer than a majority of the Directors are Incumbent Directors. For purposes of this Agreement, an “Incumbent Director” is any director who is either: 
 (A) A director of the Company as of January 1, 2007; or 
 (B) A director who is elected or nominated for election to the Board of Directors of the Company with the affirmative votes of at least a majority of the Incumbent Directors at the time of such election or
nomination (but shall not include an individual whose election or nomination is in connection with an actual or threatened proxy contest relating to the election of directors to the Company). 
 (iv) The sale or disposition of 50% or more of the Company’s assets (or consummation of any transaction having similar effect); or

 (v) The dissolution or liquidation of the Company. 
 (c) “Company” shall mean Power Integrations, Inc., and following a Change of Control, any successor or assign to its business and/or assets that agrees or otherwise becomes bound by all
the terms and provisions of this Agreement by operation of law. 
 (d) “Competition” shall mean rendering
services for any organization or engaging in any business directly competitive with the Company or materially contrary or harmful to the interests of the Company, including, but not limited to (i) accepting employment with, or serving as a
consultant, advisor or in any other capacity to, the division or other portion of the business of any employer which competes directly with the Company; (ii) materially acting against the interest of the Company or (iii) personally
recruiting, directly or indirectly, any person who is then an employee of the Company. 
 (e) “Good Reason”
means the occurrence of any of the following conditions, without Executive’s written consent, which condition(s) remain(s) in effect 20 days after written notice to the Board from Executive of such condition(s), if such notice is given within
one year of the occurrence of such condition(s): 
 (i) A material decrease or planned decrease in Executive’s annual salary,
targeted annual incentive bonus or employee benefits following a Change of Control; 
 (ii) A demotion, a material reduction in
Executive’s position, responsibilities or duties or a material, adverse change in Executive’s substantive functional responsibilities or duties, provided, however, that in the event of a Change of Control, Executive will not be deemed
demoted nor his position, responsibilities or duties materially reduced or his substantive functional responsibilities or duties materially adversely changed if Executive is responsible for substantially the same function that Executive had in the
Company and such function and the responsibilities and duties thereof are similar to those of like situated employees of the acquirer employed in other subsidiaries, divisions, or units. 
 (iii) The relocation of Executive’s work place for the Company to a location more than fifty (50) miles from the current location of
Executive’s work place or a material adverse change in the working conditions or established working hours which persist for a period of six continuous months; or 
  

 2. 

 (iv) Any material breach of this Agreement by the Company. 
 (f) “New Executive” means an Executive who has served as an executive of the Company for fewer than five years.
Executive’s service to the Company as an executive will be deemed to begin upon the date of commencement of employment as an executive officer or upon the date of promotion to an executive officer position. A New Executive will be first
eligible for the benefits under this Agreement upon the completion of one year of continuous service as an executive officer of the Company, unless the Board of Directors or Compensation Committee determines otherwise. 
 (g) “Permanent Disability” means that: 
 (i) The Executive has been incapacitated by bodily injury or disease so as to be prevented thereby from engaging in the performance of the Executive’s duties; 
 (ii) Such total incapacity shall have continued for a period of six consecutive months; and 
 (iii) Such incapacity will, in the opinion of a qualified physician, be permanent and continuous during the remainder of the Executive’s
life. 
 (h) “Senior Executive” means an Executive who has served continuously as an executive of the Company
for at least five years. Executive’s service to the Company as an executive will be deemed to begin upon the date of commencement of employment as an executive officer or upon the date of promotion to an executive officer position. 

(i) “Termination of Employment” means: 
 (i) Any termination of employment of the Executive by the Company without Cause; and 
 (ii)
Any resignation by the Executive for Good Reason. 
 (j) “Termination of Employment” shall not include any
termination of the employment of the Executive (a) by the Company for Cause; (b) as a result of Permanent Disability of the Executive; (c) as a result of the death of the Executive; (d) as a result of the voluntary termination of
employment by the Executive for reasons other than Good Reason; or (e) a Termination Upon Change of Control. 
 (k)
“Termination Upon Change of Control” means: 
 (i) Any termination of the employment of the Executive by
the Company without Cause on or within eighteen (18) months after (i) the occurrence of a Change of Control; or (ii) the date that the person serving as of the Effective Date as Chief Executive Officer of the company ceases to serve
in such office. 
  

 3. 

 (ii) Any resignation by the Executive for Good Reason within eighteen (18) months after
(i) the occurrence of a Change of Control or (ii) the date that the person serving as of the Effective Date as Chief Executive Officer of the Company ceases to serve in such office. 
 (l) “Termination Upon Change of Control” shall not include any termination of the employment of the Executive (a) by
the Company for Cause; (b) as a result of the Permanent Disability of the Executive; (c) as a result of the death of the Executive; or (d) as a result of the voluntary termination of employment by the Executive for reasons other than
Good Reason. 
 2. Position and Duties. Executive shall continue to be an at-will employee of the Company employed in his/her current
position at his/her then current salary rate. Executive shall also be entitled to continue to participate in and to receive benefits on the same basis as other executive or senior staff members under any of the Company’s employee benefit plans
as in effect from time to time. In addition, Executive shall be entitled to the benefits afforded to other employees similarly situated under the Company’s vacation, holiday and business expense reimbursement policies. Executive agrees to
devote the business time, energy and skill necessary to execute his/her duties at the Company. These duties shall include, but not be limited to, any duties consistent with his/her position which may be assigned to Executive from time to time.

 3. Acceleration of Vesting of Stock Options Upon a Change of Control. In the event of a Change of Control, and provided that
Executive’s employment with the Company has not terminated prior to such date, all stock options granted by the Company to the Executive prior to the Change of Control shall have their vesting accelerated, such that 25% of the then unvested
shares will be deemed vested and exercisable as of the consummation of the Change of Control. Notwithstanding the foregoing, if the Change of Control does not require the assumption or substitution by the acquiring entity (or parent thereof) of all
of the Company’s obligations of the then outstanding stock options, then (i) if Executive is a New Executive, 50% of the then unvested shares will be accelerated and deemed vested and exercisable ten (10) days prior to the
consummation of the Change of Control; or (ii) if Executive is a Senior Executive, 100% of the then unvested shares will be accelerated and deemed vested and exercisable ten (10) days prior to the consummation of the Change of Control. In
the event of a Change of Control, the Company undertakes to facilitate Executive’s receipt of the benefits set forth in this section by providing written notice to Executive, at least ten (10) days in advance of the closing of such
transaction, which (i) indicates the anticipated timing and material economic terms of the anticipated transaction and (ii) references the Executive’s rights under this Section 3. The Company shall also provide appropriate option
exercise forms and instructions to assist Executive in exercising his or her rights to acquire securities of the Company on or prior to the consummation of the Change of Control. Executive is strongly encouraged to consult with his or her tax and
financial advisor prior to electing to exercise any option pursuant to this Agreement. 
  

 4. 

 4. Termination Upon Change of Control. 
 (a) Severance Benefits. In the event of the Executive’s Termination Upon Change of Control, Executive shall be entitled to the following
separation benefits: 
 (i) All salary, accrued but unused vacation earned through the date of Executive’s termination and
Executive’s target bonus for the year in which termination occurs, prorated through the date of Executive’s termination; 
 (ii) Within fourteen (14) days of submission of proper expense reports by the Executive, reimbursement by the Company for all expenses reasonably and necessarily incurred by the Executive in connection with the business of the
Company prior to his termination of employment; 
 (iii) (i) if Executive is a New Executive, payment of an amount equal to six
(6) months of Executive’s highest annual salary from the Company and 50% of the Executive’s targeted annual incentive bonus as in effect as of the date of such termination; or 
 (ii) if Executive is a Senior Executive, payment of an amount equal to (a) six (6) months of Executive’s highest annual salary from the
Company and 50% of the Executive’s targeted annual incentive bonus as in effect as of the date of such termination and (b) up to an additional six (6) months of such salary and 50% of such bonus until Executive secures new employment
all less applicable withholding, paid in a lump sum within thirty (30) days of termination of employment; provided that, in the case of Section 4(a)(iii)(ii)(b) above, the amounts of additional salary and bonus shall be paid in
ratable monthly installments for six months or until Executive secures new employment, whichever occurs earlier; 
 (iv) The ability
to exercise any and all vested options granted after August 8, 2007 (and any options granted prior to August 8, 2007 only to the extent that such extension of exercisability would not require the Company to incur a compensation expense for
financial statement purposes) for twelve (12) months from the date of termination of employment; and 
 (v) The vesting of all
stock options granted by the Company to the Executive and outstanding immediately prior to such Termination Upon Change of Control shall have their vesting accelerated, such that (i) if Executive is a New Executive, 50% of the then unvested
shares will be deemed vested and exercisable as of the date of termination of employment; or (ii) if Executive is a Senior Executive, 100% of the then unvested shares will be deemed vested and exercisable as of the date of termination of
employment. 
 (b) Benefits Continuation. 
 (i) In the event of Executive’s Termination Upon Change of Control, Executive shall be entitled to elect continued medical and dental insurance coverage in accordance with the applicable provisions of the
Consolidated Omnibus Budget Reconciliation Act of 1985, as amended, (“COBRA”) and the Company shall pay such COBRA premiums for (i) six (6) months from the date of termination of employment, if Executive is a New Executive; or
(ii) twelve (12) months from the date of termination of employment, if Executive is a Senior Executive. Notwithstanding the above, in the event Executive becomes eligible to be covered under another employer’s group health plan (other
than a plan which imposes a preexisting condition exclusion unless the preexisting condition exclusion does not apply) during the period provided for herein, the Company shall cease payment of the COBRA premiums; and 
  

 5. 

 (ii) Executive shall receive the benefits, if any, under the Company’s 401(k) Plan and other
Company benefit plans to which he may be entitled pursuant to the terms of such plans. 
 5. Termination of Employment. 
 (a) Severance Benefits. In the event of the Executive’s Termination of Employment, Executive shall be entitled to all separation benefits
provided in Section 4(a)(i) and 4(a)(ii) above. In addition, Executive shall be entitled to six (6) months of Executive’s highest annual salary (with the Company) and 50% of the Executive’s targeted annual incentive bonus as in
effect as of the date of such termination, all less applicable withholding, paid in a lump sum within thirty (30) days of termination of employment. 
 (b) Benefits Continuation. 
 (i) In the event of Executive’s Termination of Employment,
Executive shall be entitled to elect continued medical and dental insurance coverage in accordance with the applicable provisions of COBRA and the Company shall pay such COBRA premiums for six (6) months from the date of termination of
employment. Notwithstanding the above, in the event Executive becomes eligible to be covered under another employer’s group health plan (other than a plan which imposes a preexisting condition exclusion unless the preexisting condition
exclusion does not apply) during the period provided for herein, the Company shall cease payment of the COBRA premiums; and 
 (ii)
Executive shall receive the benefits, if any, under the Company’s 401(k) Plan and other Company benefit plans to which he may be entitled pursuant to the terms of such plans. 
 6. Retirement Benefits. 
 (a)
In order to be eligible for the “Retirement Benefits” described in Section 6(b) below, the Executive must meet both of the following criteria: 
 (i) At the time of Executive’s voluntary termination of employment with the Company (other than in circumstances in which such termination constitutes a Termination of Employment), the Executive has
(1) achieved the age of 50 and served the Company for at least 15 years; or (2) achieved the age of 55 and served the Company for at least 10 years; and 
 (ii) At any time during which the Executive is receiving Retirement Benefits, the Executive shall not (1) be employed or on contract full time by a third party (excluding a non-profit organization
described in Section 501(c)(3) of the Code) or (2) engage in Competition. If the Executive engages in either (1) or (2), then all Retirement Benefits shall terminate immediately and permanently. 
  

 6. 

 (b) If both conditions in Sections 6(a)(i) and 6(a)(ii) above are satisfied, the Executive shall
be entitled to receive the following “Retirement Benefits:” 
 (i) The ability to exercise any and all options granted after
August 8, 2007 (and any options granted prior to August 8, 2007 only to the extent that such extension of exercisability would not require the Company to incur a compensation expense for financial statement purposes) to the extent such
options are vested as of the date of termination of employment for the earlier of: (i) the term of the option or (ii) five years; and 
 (ii) The Company shall pay the Executive’s medical and dental premiums until the Executive achieves the age of 65 and additionally, if the Executive’s medical and dental coverage on the date of termination included the
Executive’s dependents, the premiums of such dependents until the Executive achieves the age of 65, as follows: 
 (A) COBRA
Continuation Coverage. Upon the termination of Executive’s active employment with the Company, Executive shall be entitled to elect continued medical and dental insurance coverage in accordance with the applicable provisions of COBRA and
the Company shall pay such COBRA premiums. Notwithstanding the above, in the event Executive becomes eligible to be covered under another employer’s group health plan (other than a plan which imposes a preexisting condition exclusion unless the
preexisting condition exclusion does not apply) during the period provided for herein, the Company shall cease payment of the COBRA premiums; and 
 (B) Coverage After COBRA & Prior to Medicare Eligibility. In the event the Executive is not eligible for Medicare coverage at end of his maximum applicable COBRA coverage period, then, the Executive shall identify and locate
either or both an individual conversion policy through the insurer providing insurance coverage in connection with the Company sponsored medical and dental plans available to active employees (the “Conversion Policy”), and/or a
supplemental individual policy or an individual policy on the open market (the “Individual Policy”) to be effective upon the termination of his COBRA continuation coverage so that, when the coverages for Executive provided by the
Conversion Policy and/or the Individual Policy are combined, such coverages provide substantially similar medical and dental benefits in the aggregate as those provided under the medical and dental plans sponsored by the Company at such time, or at
any time after the termination of Executive’s employment, for active employees (the “Comparable Coverage”). The Company shall be responsible for the payment of any Conversion Policy premiums and/or Individual Policy premiums for the
Comparable Coverage which payment shall not exceed the cost of premiums for medical and dental coverage for then active employees. Notwithstanding the above, in the event Executive becomes eligible to be covered under another employer’s group
health plan (other than a plan which imposes a preexisting condition exclusion unless the preexisting condition exclusion does not apply) during the period provided for herein, the Company shall cease payment of such premiums; and 
 (C) Coverage After COBRA & Upon Medicare Eligibility. In the event the Executive is eligible for Medicare coverage at the end of his
maximum applicable COBRA coverage period, the Executive may identify and locate a Medicare supplemental policy, which may include, to the extent permitted, the medical and dental plans 
  

 7. 

 sponsored by the Company at such time for active employees (the “Company Plans”), that, when combined with the
coverage provided by Medicare (both Parts A and B), provides Comparable Coverage. If Executive is at such time eligible to participate under the Company Plans, Executive will be entitled to so participate; provided that Executive shall be solely
responsible for the payment of any Medicare premiums and/or Medical supplemental policy premiums for the Comparable Coverage (including, if applicable, any premiums under the Company Plans). The Company will use commercially reasonable efforts to
provide that Executive will continue to be eligible for coverage under the Company Plans, unless the Board of Directors or Compensation Committee determines that such coverage would create an undue burden on the Company. 
 (D) Taxes. The Executive shall be responsible for any taxes that may be attributable to or result from the payments made by the Company in
accordance with this Section 6(b)(ii) or receipt of medical and dental benefits attributable to or result from such payments. 
 7.
Termination of Employment due to Death or Permanent Disability. 
 (a) In the event of (i) the Executive’s death during
his employment with the Company and the Executive having satisfied the criteria provided at Section 6(a)(i) as of or prior to the date of his death or (ii) the Executive’s death during the period while Executive was receiving
Retirement Benefits as a result of compliance with the criteria provided at Section 6(a)(i) and 6(a)(ii), (1) the Executive’s legal representative or any person empowered to act on his behalf under his will or under the then
applicable laws of descent and distribution shall be entitled to the extension of the term of stock option exercisability pursuant to Section 6(b)(i) and (2) the Executive’s dependents, to the extent applicable, shall be entitled to
the medical and dental benefits pursuant to Section 6(b)(ii)(A)-(D) for that period of time until the Executive would have achieved the age of 65 if the Executive had lived. 
 (b) In the event of the Executive’s Permanent Disability during his employment with the Company and the Executive having satisfied the
criteria provided at Section 6(a)(i), the Executive, and to the extent applicable, his dependents, shall be entitled to the benefits provided in Section 6(b)(i) and 6(b)(ii)(A)-(D). 
 8. Payment of Taxes. All payments made to Executive under this Agreement shall be subject to all applicable federal and state income, employment
and payroll taxes. 
 9. Parachute Payment. In the event that any of the payments and benefits provided for in this Agreement or
otherwise payable to the Executive in connection with the Change of Control (collectively, the “Payments”) would result in a “parachute payment” within the meaning of Section 280G of the Internal Revenue Code of 1986, as
amended (the “Code”), the amount of such Payments shall be either: (i) the full amount of the Payments, or (ii) a reduced amount which would result in no portion of the Payments being subject to the excise tax imposed pursuant to
Section 4999 of the Code (the “Excise Tax”), whichever of the foregoing amounts, taking into account the applicable federal, stated and local income tax and the Excise Tax, results in the receipt by the Executive, on an after-tax
basis, of the greatest amount of benefit. Unless the Company and the Executive otherwise agree in writing, any determination required under 
  

 8. 

 this Section 9 shall be made in writing by independent public accountants appointed by the Company and reasonably
acceptable to the Executive (the “Accountants”), whose determination shall be conclusive and binding upon the Executive and the Company for all purposes. The Company shall bear all costs the Accountants may reasonably incur in connection
with such determination, and the Company and the Executive shall furnish to the Accountants such information and documents as the Accountants may reasonably request in order to make a determination under this Section 9. 
 10. Exclusive Remedy. The payments and benefits provided for in Section 4 or Section 5 shall constitute the Executive’s sole and
exclusive remedy for any alleged injury or other damages arising out of the cessation of the employment relationship between the Executive and the Company. To the extent Executive is entitled to severance or other benefits upon termination of
employment under this Agreement and any other agreement, the benefits payable under this Agreement shall be reduced by the amounts paid to Executive under any other such agreement. 
 11. Proprietary and Confidential Information. The Executive agrees to continue to abide by the terms and conditions of any Company’s
confidentiality and/or proprietary rights agreement between the Executive and the Company. 
 12. Arbitration. Any claim, dispute or
controversy arising out of this Agreement, the interpretation, validity or enforceability of this Agreement or the alleged breach thereof shall be submitted by the parties to binding arbitration by the American Arbitration Association in San Jose,
California or elsewhere by mutual agreement. The selection of the arbitrator and the arbitration procedure shall be governed by the Commercial Arbitration Rules of the American Arbitration Association. All costs and expenses of arbitration or
litigation, including but not limited to reasonable attorneys fees and other costs reasonably incurred by the Executive, shall be paid by the Company. Judgment may be entered on the award of the arbitration in any court having jurisdiction.

 13. Interpretation. Executive and the Company agree that this Agreement shall be interpreted in accordance with and governed by the
laws of the State of California, without regard to such state’s conflict of laws rules. 
 14. Conflict in Benefits. This
Agreement shall supersede all prior arrangements, whether written or oral, and understandings regarding the subject matter of this Agreement. To the extent Executive is entitled to severance or other benefits upon termination of employment under
this Agreement and any other agreement, including any change in control agreement entered into by the Company and the Executive, the benefits payable under this Agreement shall supersede and replace any other such agreement. However, this Agreement
is not intended to and shall not affect, limit or terminate (i) any plans, programs, or arrangements of the Company that are regularly made available to a significant number of employees of the Company, (ii) the Company’s stock option
plans, (iii) any agreement or arrangement with the Executive that has been reduced to writing and which does not relate to the subject matter hereof, or (iv) any agreements or arrangements hereafter entered into by the parties in writing,
except as otherwise expressly provided herein. 
  

 9. 

 15. Release of Claims. No severance benefits shall be paid to Executive under this Agreement
unless and until the Executive shall, in consideration of the payment of such severance benefit, execute a release of claims in a form reasonably satisfactory to the Company. Notwithstanding the foregoing, the general release shall not be construed
to waive any right to indemnification or contribution otherwise available to Executive under law or rules of corporate governance with respect to claims by third parties for actions or omissions in Executive’s role as an officer of the Company.

 16. Successors and Assigns. 
 (a) Successors of the Company. The Company will require any successor or assign (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company,
expressly, absolutely and unconditionally to assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession or assignment had taken place. Failure of the
Company to obtain such agreement prior to the effectiveness of any such succession transaction shall be a breach of this Agreement and shall entitle the Executive to terminate his or her employment with the Company within three (3) months
thereafter and to receive the benefits provided under Section 4 of this Agreement in the event of Termination Upon Change of Control. As used in this Agreement, “Company” shall mean the Company as defined above and any successor or
assign to its business and/or assets as aforesaid which executes and delivers the agreement provided for in this Section 16 or which otherwise becomes bound by all the terms and provisions of this Agreement by operation of law. 
 (b) Heirs of Executive. This Agreement shall inure to the benefit of and be enforceable by the Executive’s personal and legal
representatives, executors, administrators, successors, heirs, distributees, devisees and legatees. 
 17. Notices. For purposes of
this Agreement, notices and all other communications provided for in the Agreement shall be in writing and shall be deemed to have been duly given when delivered or mailed by United States registered mail, return receipt requested, postage prepaid,
as follows: 
 if to the Company: 
 Power Integrations, Inc. 
 5245 Hellyer Avenue 
 San Jose, California 95138 
 Attn: Chief Executive Officer or Chief Financial Officer 
 and if to the Executive at the address specified on the cover page
to this Agreement. Notice may also be given at such other address as either party may have furnished to the other in writing in accordance herewith, except that notices of change of address shall be effective only upon receipt. 
 18. No Representations. Executive acknowledges that he/she is not relying and has not relied on any promise, representation or statement made by
or on behalf of the Company which is not set forth in this Agreement. 
  

 10. 

 19. Validity. If any one or more of the provisions (or any part thereof) of this Agreement shall
be held invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions (or any part thereof) shall not in any way be affected or impaired thereby. 
 20. Consultation with Legal and Financial Advisors. Executive acknowledges that his Agreement confers significant legal rights, and may also
involve the waiver of rights under other agreements; that the Company has encouraged Executive to consult with Executive’s personal legal and financial advisers; and that Executive has had adequate time to consult with Executive’s advisers
before signing this Agreement. 
 21. Application of Section 409A and Other Limitations. 
 (a) Extension of Stock Option Exercise Period. Notwithstanding anything to the contrary in this Agreement, in the event any extended exercise
period provided for in this Agreement shall result in a portion of a stock option becoming subject to the provisions of Section 409A of the Code, the extended exercise period of such portion of such stock option shall be automatically shortened
to the minimum extent necessary to prevent such portion of such option from becoming subject to Section 409A of the Code. In further limitation of any provisions providing for an extended exercise period, the following provisions shall apply:

 (i) If the stock option was granted pursuant to the 1997 Stock Option Plan, as amended (the “1997 Plan”) and pursuant to
a Change in Control (as defined in the 1997 Plan) substantially all of the stock options outstanding pursuant to the 1997 Plan will be terminated at the effective date of such Change in Control, any provisions in this Agreement providing for an
extended exercise period shall not apply to such stock option. 
 (ii) If the stock option was granted pursuant to the 1998
Nonstatutory Stock Option Plan (the “1998 Plan”) and pursuant to a Change in Control (as defined in the 1998 Plan) substantially all of the stock options outstanding pursuant to the 1998 Plan will be terminated at the effective date of
such Change in Control, any provisions in this Agreement providing for an extended exercise period shall not apply to such stock option. 
 (iii) If the stock option was granted pursuant to an equity incentive plan adopted after the date hereof (a “Future Plan”) and, pursuant to the provisions of the Future Plan, substantially all of the stock options
outstanding pursuant to the Future Plan will be terminated at the effective date of an event or transaction, any provisions in this Agreement providing for an extended exercise period shall not apply to such stock option. 
 (b) Other Benefits. In the event that any benefit provided for under this Agreement, including but not limited to severance, medical, dental and
retirement benefits, shall fail to satisfy the distribution requirement of Section 409A(a)(2)(A) of the Code as a result of the application of Section 409A(a)(2)(B)(i) of the Code, the payment of such benefit shall be accelerated to the
minimum extent necessary so that the benefit is not subject to the provisions of Section 409A(a)(1) of the Code. (The payment schedule as revised after the application of the preceding sentence shall be referred to as the “Revised Payment
Schedule.”) In the event the payment of such benefits pursuant to the Revised Payment Schedule would be subject to Section 
  

 11. 

 409A(a)(1) of the Code, the payment of such benefits shall not be paid pursuant to the Revised Payment Schedule and
instead the payment of such benefits shall be delayed to the minimum extent necessary so that such benefits are not subject to the provisions of Section 409A(a)(1) of the Code. The Board of Directors or the Compensation Committee may attach
conditions to or adjust the amounts paid pursuant to this Section 21(b) to preserve, as closely as possible, the economic consequences that would have applied in the absence of this Section 21(b); provided, however, that no such condition
or adjustment shall result in the payments being subject to Section 409A(a)(1) of the Code. 
  

 12.Form of Director Option Grant Agreement

 Exhibit 10.9 
 POWER INTEGRATIONS, INC. 
 NONSTATUTORY STOCK OPTION AGREEMENT 
 FOR OUTSIDE DIRECTORS 
 THIS
NONSTATUTORY STOCK OPTION AGREEMENT FOR OUTSIDE DIRECTORS (the “Option Agreement”) is made and entered into as of
                                         
           , by and between Power Integrations, Inc. and
                                     (the
“Optionee”). 
 The Company has granted to the Optionee an option to purchase certain shares of Stock pursuant to the Directors Equity
Compensation Program under the 2007 Equity Incentive Plan upon the terms and conditions set forth in this Option Agreement (the “Option”). In the event of any conflict between the provisions of the Option Agreement and those of the
Plan, the provisions of the Option Agreement shall control. 
 1. Definitions and Construction. 
 1.1 Definitions. Whenever used herein, the following terms shall have their respective meanings set forth below: 
 (a) “Date of Option Grant” means
                            . 
 (b) “Number of Option Shares” means
                             shares of Stock, as adjusted from time to time pursuant to
Section 9. 
 (c) “Exercise Price” means
$             per share of Stock, as adjusted from time to time pursuant to Section 9. 
 (d) “Initial Exercise Date” means the Initial Vesting Date. 
 (e) “Initial Vesting
Date” means                             . 

 (f) “Vested Ratio” means, on any relevant date, the ratio determined as follows:

  

			
	 	  	Vested Ratio
	 Prior to Initial Vesting Date
	  	
	 On Initial Vesting Date, provided the Optionee’s Service has not terminated prior to such date
	  	
	 Plus
	  	
	 For each full month of the Optionee’s continuous Service from the Initial Vesting Date until the Vested Ratio equals 1/1, an additional

	  	

 (g) “Option Expiration Date” means the date ten (10) years after the Date
of Option Grant. 
 (h) “Board” means the Board of Directors of the Company. If one or more Committees have been appointed
by the Board to administer the Plan, “Board” shall also mean such Committee(s). 
 (i) “Code” means the Internal
Revenue Code of 1986, as amended, and any applicable regulations promulgated thereunder. 
 (j) “Committee” means a
committee of the Board duly appointed to administer the Plan and having such powers as shall be specified by the Board. Unless the powers of the Committee have been specifically limited, the Committee shall have all of the powers of the Board
granted in the Plan, including, without limitation, the power to amend or terminate the Plan at any time, subject to the terms of the Plan and any applicable limitations imposed by law. 
 (k) “Company” means Power Integrations, Inc., a Delaware corporation, or any successor corporation thereto. 
 (l) “Consultant” means any person, including an advisor, engaged by a Participating Company to render services other than as an
Employee or a Director. 
 (m) “Director” means a member of the Board or of the board of directors of any other
Participating Company. 
 (n) “Disability” means the permanent and total disability of the Optionee within the meaning of
Section 22(e)(3) of the Code. 
  

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 (o) “Employee” means any person treated as an employee (including an officer or a
Director who is also treated as an employee) in the records of a Participating Company; provided, however, that neither service as a Director nor payment of a director’s fee shall be sufficient to constitute employment for purposes of the Plan.

 (p) “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
 (q) “Fair Market Value” means, as of any date, the value of a share of Stock or other property as determined by the Board, in its sole
discretion, or by the Company, in its sole discretion, if such determination is expressly allocated to the Company herein, subject to the following: 
 (i) If, on such date, there is a public market for the Stock, the Fair Market Value of a share of Stock shall be the closing sale price of a share of Stock (or the mean of the closing bid and asked prices of a share
of Stock if the Stock is so quoted instead) as quoted on the Nasdaq National Market, the Nasdaq Small-Cap Market or such other national or regional securities exchange or market system constituting the primary market for the Stock, as reported in
the Wall Street Journal or such other source as the Company deems reliable. If the relevant date does not fall on a day on which the Stock has traded on such securities exchange or market system, the date on which the Fair Market Value shall
be established shall be the last day on which the Stock was so traded prior to the relevant date, or such other appropriate day as shall be determined by the Board, in its sole discretion. 
 (ii) If, on such date, there is no public market for the Stock, the Fair Market Value of a share of Stock shall be as determined by the Board without
regard to any restriction other than a restriction which, by its terms, will never lapse. 
 (r) “Parent Corporation” means
any present or future “parent corporation” of the Company, as defined in Section 424(e) of the Code. 
 (s)
“Participating Company” means the Company or any Parent Corporation or Subsidiary Corporation. 
 (t)
“Participating Company Group” means, at any point in time, all corporations collectively which are then Participating Companies. 
 (u) “Plan” means the Power Integrations, Inc. 2007 Equity Incentive Plan. 
 (v) “Securities Act”
means the Securities Act of 1933, as amended. 
 (w) “Service” means the Optionee’s service with the Participating
Company Group, whether in the capacity of an Employee, a Director or a Consultant. The Optionee’s Service shall not be deemed to have terminated merely because of a change in the capacity in which the Optionee renders Service to the
Participating Company Group or a change 
  

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 in the Participating Company for which the Optionee renders such Service, provided that there is no interruption or
termination of the Optionee’s Service. The Optionee’s Service shall be deemed to have terminated either upon an actual termination of Service or upon the corporation for which the Optionee performs Service ceasing to be a Participating
Company. 
 (x) “Stock” means the common stock of the Company, as adjusted from time to time in accordance with
Section 9. 
 (y) “Subsidiary Corporation” means any present or future “subsidiary corporation” of the
Company, as defined in Section 424(f) of the Code. 
 1.2 Construction. Captions and titles contained herein are for
convenience only and shall not affect the meaning or interpretation of any provision of this Option Agreement. Except when otherwise indicated by the context, the singular shall include the plural, the plural shall include the singular, and the term
“or” shall include the conjunctive as well as the disjunctive. 
 2. Tax Status of the Option. This Option is
intended to be a nonstatutory stock option and shall not be treated as an incentive stock option within the meaning of Section 422(b) of the Code. 
 3. Administration. All questions of interpretation concerning this Option Agreement shall be determined by the Board, including any duly appointed Committee of the Board. All determinations by the Board
shall be final and binding upon all persons having an interest in the Option. Any officer of a Participating Company shall have the authority to act on behalf of the Company with respect to any matter, right, obligation, or election which is the
responsibility of or which is allocated to the Company herein, provided the officer has apparent authority with respect to such matter, right, obligation, or election. 
 4. Exercise of the Option. 
 4.1 Right to Exercise. Except as otherwise provided
herein, the Option shall be exercisable on and after the Initial Exercise Date and prior to the termination of the Option (as provided in Section 6) in an amount not to exceed the Number of Option Shares multiplied by the Vested Ratio less the
number of shares previously acquired upon exercise of the Option. In no event shall the Option be exercisable for more shares than the Number of Option Shares. 
 4.2 Method of Exercise. Exercise of the Option shall be by written notice to the Company which must state the election to exercise the Option, the number of whole shares of Stock for which the Option is
being exercised and such other representations and agreements as to the Optionee’s investment intent with respect to such shares as may be required pursuant to the provisions of this Option Agreement. The written notice must be signed by the
Optionee and must be delivered in person, by certified or registered mail, return receipt requested, by confirmed facsimile transmission, or by such other means as the Company may permit, to the Chief Financial Officer of the Company, or other
authorized representative of the Participating Company Group, prior to the termination of the Option as set forth in Section 6, accompanied by 
  

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 full payment of the aggregate Exercise Price for the number of shares of Stock being purchased. The Option shall be
deemed to be exercised upon receipt by the Company of such written notice and the aggregate Exercise Price. 
 4.3 Payment of Exercise
Price. 
 (a) Forms of Consideration Authorized. Except as otherwise provided below, payment of the aggregate Exercise Price
for the number of shares of Stock for which the Option is being exercised shall be made (i) in cash, by check, or cash equivalent, (ii) by tender to the Company of whole shares of Stock owned by the Optionee having a Fair Market Value not
less than the aggregate Exercise Price, (iii) by means of a Cashless Exercise, as defined in Section 4.3(c), or (iv) by any combination of the foregoing. 
 (b) Tender of Stock. Notwithstanding the foregoing, the Option may not be exercised by tender to the Company of shares of Stock to the extent such tender of Stock would constitute a violation of the provisions
of any law, regulation or agreement restricting the redemption of the Company’s stock. The Option may not be exercised by tender to the Company of shares of Stock unless such shares either have been owned by the Optionee for more than six
(6) months or were not acquired, directly or indirectly, from the Company. 
 (c) Cashless Exercise. A “Cashless
Exercise” means the assignment in a form acceptable to the Company of the proceeds of a sale or loan with respect to some or all of the shares of Stock acquired upon the exercise of the Option pursuant to a program or procedure approved by
the Company (including, without limitation, through an exercise complying with the provisions of Regulation T as promulgated from time to time by the Board of Governors of the Federal Reserve System). The Company reserves, at any and all times,
the right, in the Company’s sole and absolute discretion, to decline to approve or terminate any such program or procedure. 
 4.4
Tax Withholding. At the time the Option is exercised, in whole or in part, or at any time thereafter as requested by the Company, the Optionee agrees to make adequate provision for any sums required to satisfy the federal, state, local
and foreign tax withholding obligations of the Participating Company Group, if any, which arise in connection with the Option, including, without limitation, obligations arising upon (i) the exercise, in whole or in part, of the Option,
(ii) the transfer, in whole or in part, of any shares acquired upon exercise of the Option, or (iii) the lapsing of any restriction with respect to any shares acquired upon exercise of the Option. 
 4.5 Certificate Registration. Except in the event the Exercise Price is paid by means of a Cashless Exercise, the certificate for the
shares as to which the Option is exercised shall be registered in the name of the Optionee, or, if applicable, the heirs of the Optionee. 
 4.6 Restrictions on Grant of the Option and Issuance of Shares. The grant of the Option and the issuance of shares of Stock upon exercise of the Option shall be subject to compliance with all applicable requirements of
federal, state or foreign law with respect to such securities. The Option may not be exercised if the issuance of shares of Stock upon exercise 
  

 5 

 would constitute a violation of any applicable federal, state or foreign securities laws or other law or regulations or
the requirements of any stock exchange or market system upon which the Stock may then be listed. In addition, the Option may not be exercised unless (i) a registration statement under the Securities Act shall at the time of exercise of the
Option be in effect with respect to the shares issuable upon exercise of the Option or (ii) in the opinion of legal counsel to the Company, the shares issuable upon exercise of the Option may be issued in accordance with the terms of an
applicable exemption from the registration requirements of the Securities Act. THE OPTIONEE IS CAUTIONED THAT THE OPTION MAY NOT BE EXERCISED UNLESS THE FOREGOING CONDITIONS ARE SATISFIED. ACCORDINGLY, THE OPTIONEE MAY NOT BE ABLE TO EXERCISE THE
OPTION WHEN DESIRED EVEN THOUGH THE OPTION IS VESTED. The inability of the Company to obtain from any regulatory body having jurisdiction the authority, if any, deemed by the Company’s legal counsel to be necessary to the lawful issuance and
sale of any shares subject to the Option shall relieve the Company of any liability in respect of the failure to issue or sell such shares as to which such requisite authority shall not have been obtained. As a condition to the exercise of the
Option, the Company may require the Optionee to satisfy any qualifications that may be necessary or appropriate, to evidence compliance with any applicable law or regulation and to make any representation or warranty with respect thereto as may be
requested by the Company. 
 4.7 Fractional Shares. The Company shall not be required to issue fractional shares upon the
exercise of the Option. 
 5. Nontransferability of the Option. The Option may be exercised during the lifetime of the Optionee
only by the Optionee or the Optionee’s guardian or legal representative and may not be assigned or transferred in any manner except by will or by the laws of descent and distribution. Following the death of the Optionee, the Option, to the
extent provided in Section 7, may be exercised by the Optionee’s legal representative or by any person empowered to do so under the deceased Optionee’s will or under the then applicable laws of descent and distribution. 
 6. Termination of the Option. The Option shall terminate and may no longer be exercised on the first to occur of (a) the Option
Expiration Date, (b) the last date for exercising the Option following termination of the Optionee’s Service as described in Section 7, or (c) a Change in Control to the extent provided in Section 8. 
 7. Effect of Termination of Service. 
 7.1 Option Exercisability. 
 (a) Disability. If the Optionee’s Service with the Participating Company
Group is terminated because of the Disability of the Optionee, the Option, to the extent unexercised and exercisable on the date on which the Optionee’s Service terminated, may be exercised by the Optionee (or the Optionee’s guardian or
legal representative) at any time prior to the expiration of twelve (12) months after the date on which the Optionee’s Service terminated, but in any event no later than the Option Expiration Date. 
  

 6 

 (b) Death. If the Optionee’s Service with the Participating Company Group is terminated
because of the death of the Optionee, the Option, to the extent unexercised and exercisable on the date on which the Optionee’s Service terminated, may be exercised by the Optionee’s legal representative or other person who acquired the
right to exercise the Option by reason of the Optionee’s death at any time prior to the expiration of twelve (12) months after the date on which the Optionee’s Service terminated, but in any event no later than the Option Expiration
Date. The Optionee’s Service shall be deemed to have terminated on account of death if the Optionee dies within three (3) months after the Optionee’s termination of Service. 
 (c) Other Termination of Service. If the Optionee’s Service with the Participating Company Group terminates for any reason, except
Disability or death, the Option, to the extent unexercised and exercisable by the Optionee on the date on which the Optionee’s Service terminated, may be exercised by the Optionee within three (3) months after the date on which the
Optionee’s Service terminated, but in any event no later than the Option Expiration Date. 
 7.2 Extension if Exercise Prevented
by Law. Notwithstanding the foregoing, if the exercise of the Option within the applicable time periods set forth in Section 7.1 is prevented by the provisions of Section 4.6, the Option shall remain exercisable until three
(3) months after the date the Optionee is notified by the Company that the Option is exercisable, but in any event no later than the Option Expiration Date. 
 7.3 Extension if Optionee Subject to Section 16(b). Notwithstanding the foregoing, if a sale, within the applicable time periods set forth in Section 7.1, of shares acquired upon the exercise
of the Option would subject the Optionee to suit under Section 16(b) of the Exchange Act, the Option shall remain exercisable until the earliest to occur of (i) the tenth (10th) day following the date on which a sale of such shares by
the Optionee would no longer be subject to such suit, (ii) the one hundred and ninetieth (190th) day after the Optionee’s termination of Service, or (iii) the Option Expiration Date. 
 8. Ownership Change and Change in Control. 
 8.1 Definitions. 
 (a) An “Ownership Change Event” shall be deemed to have
occurred if any of the following occurs with respect to the Company: 
 (i) the direct or indirect sale or exchange in a single or series of
related transactions by the shareholders of the Company of more than fifty percent (50%) of the voting stock of the Company; 
 (ii) a
merger or consolidation in which the Company is a party; 
 (iii) the sale, exchange, or transfer of all or substantially all of the assets
of the Company; or 
  

 7 

 (iv) a liquidation or dissolution of the Company. 
 (b) A “Change in Control” shall mean an Ownership Change Event or a series of related Ownership Change Events (collectively, the
“Transaction”) wherein the shareholders of the Company immediately before the Transaction do not retain immediately after the Transaction, in substantially the same proportions as their ownership of shares of the Company’s
voting stock immediately before the Transaction, direct or indirect beneficial ownership of more than fifty percent (50%) of the total combined voting power of the outstanding voting stock of the Company or the corporation or corporations to
which the assets of the Company were transferred (the “Transferee Corporation(s)”), as the case may be. For purposes of the preceding sentence, indirect beneficial ownership shall include, without limitation, an interest resulting
from ownership of the voting stock of one or more corporations which, as a result of the Transaction, own the Company or the Transferee Corporation(s), as the case may be, either directly or through one or more subsidiary corporations. The Board
shall have the right to determine whether multiple sales or exchanges of the voting stock of the Company or multiple Ownership Change Events are related, and its determination shall be final, binding and conclusive. 
 8.2 Effect of Change in Control on Option. In the event of a Change in Control, any unexercised portion of the Option shall be immediately
exercisable and vested in full as of the date ten (10) days prior to the date of the Change in Control. Any exercise of the Option that was permissible solely by reason of this Section 8.2 shall be conditioned upon the consummation of the
Change in Control. In addition, the surviving, continuing, successor, or purchasing corporation or parent corporation thereof, as the case may be (the “Acquiring Corporation”), may either assume the Company’s rights and
obligations under the Option or substitute for the Option a substantially equivalent option for the Acquiring Corporation’s stock. The Option shall terminate and cease to be outstanding effective as of the date of the Change in Control to the
extent that the Option is neither assumed or substituted for by the Acquiring Corporation in connection with the Change in Control nor exercised as of the date of the Change in Control. Notwithstanding the foregoing, shares acquired upon exercise of
the Option prior to the Change in Control and any consideration received pursuant to the Change in Control with respect to such shares shall continue to be subject to all applicable provisions of this Option Agreement except as otherwise provided
herein. Furthermore, notwithstanding the foregoing, if the corporation the stock of which is subject to the Option immediately prior to an Ownership Change Event described in Section 8.1(a)(i) constituting a Change in Control is the surviving
or continuing corporation and immediately after such Ownership Change Event less than fifty percent (50%) of the total combined voting power of its voting stock is held by another corporation or by other corporations that are members of an
affiliated group within the meaning of Section 1504(a) of the Code without regard to the provisions of Section 1504(b) of the Code, the Option shall not terminate. 
 9. Adjustments for Changes in Capital Structure. In the event of any stock dividend, stock split, reverse stock split, recapitalization,
combination, reclassification, or similar change in the capital structure of the Company, appropriate adjustments shall be made in the number, Exercise Price and class of shares of stock subject to the Option. If a majority of the shares which are
of the same class as the shares that are subject to the Option are exchanged for, 
  

 8 

 converted into, or otherwise become (whether or not pursuant to an Ownership Change Event) shares of another corporation
(the “New Shares”), the Board may unilaterally amend the Option to provide that the Option is exercisable for New Shares. In the event of any such amendment, the Number of Option Shares and the Exercise Price shall be adjusted in a
fair and equitable manner, as determined by the Board, in its sole discretion. Notwithstanding the foregoing, any fractional share resulting from an adjustment pursuant to this Section 9 shall be rounded down to the nearest whole number, and in
no event may the Exercise Price be decreased to an amount less than the par value, if any, of the stock subject to the Option. 
 10.
Rights as a Shareholder. The Optionee shall have no rights as a shareholder with respect to any shares covered by the Option until the date of the issuance of a certificate for the shares for which the Option has been exercised (as
evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company). No adjustment shall be made for dividends, distributions or other rights for which the record date is prior to the date such
certificate is issued, except as provided in Section 9. 
 11. Legends. The Company may at any time place legends
referencing any applicable federal, state or foreign securities law restrictions on all certificates representing shares of stock subject to the provisions of this Option Agreement. The Optionee shall, at the request of the Company, promptly present
to the Company any and all certificates representing shares acquired pursuant to the Option in the possession of the Optionee in order to carry out the provisions of this Section. 
 12. Binding Effect. Subject to the restrictions on transfer set forth herein, this Option Agreement shall inure to the benefit of and be
binding upon the parties hereto and their respective heirs, executors, administrators, successors and assigns. 
 13. Termination or
Amendment. The Board may terminate or amend the Plan or the Option at any time; provided, however, that no such termination or amendment may adversely affect the Option or any unexercised portion hereof without the consent of the Optionee
unless such termination or amendment is necessary to comply with any applicable law, regulation or rule. No amendment or addition to this Option Agreement shall be effective unless in writing. 
 14. Integrated Agreement. This Option Agreement constitutes the entire understanding and agreement of the Optionee and the Participating
Company Group with respect to the subject matter contained herein, and there are no agreements, understandings, restrictions, representations, or warranties among the Optionee and the Participating Company Group with respect to such subject matter
other than those as set forth or provided for herein. To the extent contemplated herein, the provisions of this Option Agreement shall survive any exercise of the Option and shall remain in full force and effect. 
 15. Applicable Law. This Option Agreement shall be governed by the laws of the State of Delaware as such laws are applied to agreements
between Delaware residents entered into and to be performed entirely within the State of Delaware. 
  

 9 

			
	POWER INTEGRATIONS, INC.
		
	By:	 	  

		
	Title:	 	  

 The Optionee represents that the Optionee is familiar with the terms and provisions of this
Option Agreement and hereby accepts the Option subject to all of the terms and provisions thereof. The Optionee hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Board upon any questions arising under
this Option Agreement. 
  

							
		 		 		 	OPTIONEE
				
	 Date:
	 	  
	 		 	  

  

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