Document:

Exhibit 10.10

 

INDEMNIFICATION AGREEMENT

BETWEEN

POWER-ONE, INC.

AND

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  1.

  	
  Definitions

  	
  2

  
	
  2.

  	
  Indemnification

  	
  3

  
	
   

  	
  2.1

  	
  Indemnification in Third-Party Actions

  	
  3

  
	
   

  	
  2.2

  	
  Indemnification in Proceedings By or In the Name of the
  Company

  	
  3

  
	
   

  	
  2.3

  	
  Partial Indemnification

  	
  3

  
	
   

  	
  2.4

  	
  Indemnification Hereunder Not Exclusive

  	
  3

  
	
   

  	
  2.5

  	
  Indemnification of Indemnified Costs of Successful Party

  	
  4

  
	
   

  	
  2.6

  	
  Indemnified Costs Advanced

  	
  4

  
	
   

  	
  2.7

  	
  Limitations on Indemnification

  	
  4

  
	
  3.

  	
  Presumptions

  	
  5

  
	
   

  	
  3.1

  	
  Presumption Regarding Standard of Conduct

  	
  5

  
	
   

  	
  3.2

  	
  Determination of Right to Indemnification

  	
  5

  
	
   

  	
   

  	
  3.2.1

  	
  Burden

  	
  5

  
	
   

  	
   

  	
  3.2.2

  	
  Standard

  	
  5

  
	
  4.

  	
  Other Agreements

  	
  5

  
	
   

  	
  4.1

  	
  Change in Control Event

  	
  5

  
	
   

  	
  4.2

  	
  Maintenance of Liability Insurance

  	
  6

  
	
   

  	
   

  	
  4.2.1

  	
  Affirmative Covenant of the Company

  	
  6

  
	
   

  	
   

  	
  4.2.2

  	
  Indemnitee Named as Insured

  	
  6

  
	
   

  	
  4.3

  	
  Agreement to Serve

  	
  6

  
	
   

  	
  4.4

  	
  Effect of this Agreement on Employment Agreement

  	
  6

  
	
   

  	
  4.5

  	
  Nature of Rights; Separability

  	
  6

  
	
   

  	
  4.6

  	
  Savings Clause

  	
  7

  
	
   

  	
  4.7

  	
  Repayment of Indemnified Costs

  	
  7

  
	
   

  	
  4.8

  	
  Repayment

  	
  7

  
	
   

  	
  4.9

  	
  Mutual Acknowlegment.

  	
  7

  
	
  5.

  	
  Indemnification Procedure

  	
  7

  
	
   

  	
  5.1

  	
  Notice

  	
  7

  
	
   

  	
  5.2

  	
  Company Participation

  	
  7

  
	
   

  	
  5.3

  	
  Settlement

  	
  8

  

 

 

	
   

  	
  5.4

  	
  Subrogation

  	
  8

  
	
  6.

  	
  Miscellaneous Provisions

  	
  8

  
	
   

  	
  6.1

  	
  Amendments; Waivers

  	
  8

  
	
   

  	
  6.2

  	
  Interpretation; Governing Law

  	
  8

  
	
   

  	
  6.3

  	
  Headings

  	
  8

  
	
   

  	
  6.4

  	
  Consent to Jurisdiction

  	
  8

  
	
   

  	
  6.5

  	
  Counterparts

  	
  8

  
	
   

  	
  6.6

  	
  Successors and Assigns

  	
  9

  
	
   

  	
  6.7

  	
  Expenses; Legal Fees

  	
  9

  
	
   

  	
  6.8

  	
  Representation by Counsel; Interpretation

  	
  9

  
	
   

  	
  6.9

  	
  Specific Performance

  	
  9

  
	
   

  	
  6.10

  	
  Time is of the Essence

  	
  9

  
	
   

  	
  6.11

  	
  Notices

  	
  9

  

 

 

POWER-ONE, INC.

INDEMNIFICATION AGREEMENT

 

This Indemnification Agreement (this “Agreement”) is made as of April 25, 2006, by and
between Power-One, Inc., a Delaware corporation (the “Company”),
and the individual whose name appears below the word “Indemnitee” on the
signature page of this Agreement (the “Indemnitee”).
In consideration of the services of the Indemnitee to the Company, and to
induce the Indemnitee to provide services as a director and/or officer of the
Company or any of its subsidiaries, the Company and the Indemnitee agree as
follows:

 

RECITALS

 

A.                                    The
Indemnitee has agreed to serve, or as applicable, to continue to provide
service, as a director and/or officer of the Company or any of its
subsidiaries, and in such capacity will render valuable services to the
Company.

 

B.                                    The
Company has concluded that insurance and statutory indemnity provisions may provide
inadequate protection to individuals requested to serve as its directors and
officers.

 

C.                                    To
induce and encourage the Indemnitee to serve as a director and/or officer of
the Company or any of its subsidiaries, the Company’s Board of Directors has
decided that this Agreement is not only reasonable and prudent, but necessary,
to promote and ensure the best interests of the Company and its stockholders.

 

AGREEMENT

 

1. Definitions

 

As used in this
Agreement:

 

“Agent” means a director, officer, employee or agent of the
Company or of any other corporation, partnership, joint venture, trust,
employee benefit plan, or other enterprise that the Indemnitee served in any of
such capacities at the request of the Company.

 

“Change in Control Event” has the same meaning as a “Change
in Control Event” as defined in the Company’s 2004 Stock Incentive Plan (as it may be
amended from time to time).

 

“Expenses” includes, but is not limited to, attorneys’ fees,
disbursements and retainers, accounting and witness fees, travel and deposition
costs, expenses of investigations judicial or administrative proceedings or
appeals and amounts paid in settlement by or on behalf of the Indemnitee, and
any expenses of establishing a right to indemnification pursuant to this
Agreement, to the extent actually and reasonably incurred by the Indemnitee in
connection with

 

2

 

any
Proceeding. “Expenses” does not include the
amount of judgments, fines, penalties or ERISA excise taxes actually levied
against the Indemnitee.

 

“Indemnified Costs” means all Expenses, judgments, fines,
penalties and ERISA excise taxes actually and reasonably incurred by the
Indemnitee in connection with the investigation, defense, appeal, or settlement
of any Proceeding.

 

A “Potential
Change in Control Event” will be deemed to have occurred if:

 

(a)                                  the
Company enters into an agreement or arrangement that would constitute a Change
in Control Event if consummated;

 

(b)                                 any
person (including the Company) publicly announces an intention to take or to
consider taking actions that would constitute a Change in Control Event if
consummated; or

 

(c)                                  the
Board of Directors adopts a resolution to the effect that, for purposes of this
Agreement, a Potential Change in Control Event has occurred.

 

“Proceeding” means any threatened, pending or completed
action, suit or proceeding (including appeals thereof), whether brought by or
in the name of the Company or otherwise and whether of a civil, criminal or
administrative or investigative nature, in which the Indemnitee is or will be a
party, witness or other participant in, because the Indemnitee is or was an
Agent, whether or not the Indemnitee is serving in such capacity at the time
any liability or Expense is incurred for which indemnification or reimbursement
is to be provided under this Agreement.

 

2. Indemnification

 

2.1                               Indemnification
in Third-Party Actions. The Company will indemnify the Indemnitee if
the Indemnitee becomes a party to, is threatened to be made a party to, is a
witness or other participant in, or is otherwise involved in any Proceeding
(other than a Proceeding by or in the name of the Company to procure a judgment
in its favor), because the Indemnitee is or was an Agent, against all
Indemnified Costs, to the fullest extent permitted by applicable law.

 

2.2                               Indemnification
in Proceedings By or In the Name of the Company. The Company will
indemnify the Indemnitee if the Indemnitee is a party to, is threatened to be
made a party to, is a witness or other participant in, or is otherwise involved
in any Proceeding by or in the name of the Company to procure a judgment in its
favor because the Indemnitee was or is an Agent of the Company against all
Indemnified Costs in connection with the defense or settlement of the
Proceeding, to the fullest extent permitted by applicable law.

 

2.3                               Partial
Indemnification. If the Indemnitee is entitled under any provision of
this Agreement to indemnification by the Company for some or a portion of, but
not the total amount of, the Indemnified Costs, the Company will nevertheless
indemnify the Indemnitee for the portion of the Indemnified Costs to which the
Indemnitee is entitled.

 

3

 

2.4                               Indemnification Hereunder Not Exclusive. The
indemnification provided by this Agreement is not exclusive of any other rights
to which the Indemnitee may be entitled under the Company’s Certificate of
Incorporation, the Bylaws, any agreement, any vote of stockholders or
disinterested directors, applicable law, or otherwise, both as to action in the
Indemnitee’s official capacity and as to action in another capacity on behalf
of the Company.

 

2.5                               Indemnification
of Indemnified Costs of Successful Party. Notwithstanding any other
provisions of this Agreement, to the extent that the Indemnitee has been
successful in defense of any Proceeding or in defense of any claim, issue or
matter in the Proceeding, on the merits or otherwise, including, but not
limited to, the dismissal of a Proceeding without prejudice (unless such
dismissal is based upon a settlement that would not be covered under this
Agreement), the Indemnitee will be indemnified against all Indemnified Costs
incurred in connection therewith to the fullest extent permitted by applicable
law.

 

2.6                               Indemnified
Costs Advanced. The Indemnified Costs incurred by the Indemnitee in any
Proceeding will be paid promptly by the Company in advance of the final
disposition of the Proceeding at the written request of the Indemnitee to the
fullest extent permitted by applicable law. The advances to be made will be
paid, or caused to be paid, by the Company to the Indemnitee within 30 days
following delivery of the written request by Indemnitee to the Company,
accompanied by substantiating documentation.

 

2.7                               Limitations
on Indemnification. Notwithstanding anything to the contrary in this
Agreement, the Company is not required to make payments to:

 

(a)                                  indemnify
or advance Indemnified Costs with respect to Proceedings initiated or brought
voluntarily by the Indemnitee and not by way of defense, except with respect to
Proceedings brought to establish or enforce a right to indemnification under
this Agreement or any other statute or law or otherwise as required under
applicable law;

 

(b)                                 indemnify
the Indemnitee for any Indemnified Costs for which payment is actually made to
the Indemnitee under an insurance policy, except for any excess beyond the
amount of payment under the policy;

 

(c)                                  indemnify
the Indemnitee for any Indemnified Costs sustained in any Proceeding for an
accounting of profits made from the purchase or sale by the Indemnitee of
securities of the Company pursuant to Section 16(b) of the Securities
Exchange Act of 1934, as amended, the rules and regulations promulgated
thereunder and amendments thereto or similar provisions of any federal, state
or local law;

 

(d)                                 indemnify
the Indemnitee for any Indemnified Costs resulting from Indemnitee’s conduct
that is finally adjudged by a court of competent jurisdiction to have been
willful misconduct, knowingly fraudulent or deliberately dishonest; or

 

(e)                                  indemnify
the Indemnitee if a court of competent jurisdiction finally determines that
such payment is unlawful.

 

4

 

3. Presumptions

 

3.1                               Presumption
Regarding Standard of Conduct. The Indemnitee will be conclusively
presumed to have met the relevant standards of conduct as defined by applicable
law for indemnification pursuant to this Agreement unless a determination that
the Indemnitee has not met the relevant standards is made by (a) the Board
of Directors of the Company by a majority vote of a quorum consisting of
directors who are not parties to the Proceeding, (b) the stockholders of
the Company by majority vote, or (c) in a written opinion by independent
legal counsel, selection of whom has been made by the Company’s Board of
Directors and approved by the Indemnitee.

 

3.2                               Determination
of Right to Indemnification.

 

3.2.1                     Burden.
If a claim under this Agreement is not paid, or caused to be paid, by the
Company within 30 days of receipt of written notice, the right to
indemnification as provided by this Agreement will be enforceable by the
Indemnitee in any court of competent jurisdiction, and all reasonable costs and
expenses incurred by the Indemnitee in connection with such enforcement will be
paid promptly by the Company in advance of the final disposition by such court
at the written request of the Indemnitee to the fullest extent permitted by
applicable law; provided that Indemnitee will reimburse the Company for
all such costs and expenses paid by the Company or any of its subsidiaries if
and only to the extent that a court of competent jurisdiction finally decides (and
all appeals have been exhausted or the time to file any such appeal has lapsed)
that the Indemnitee is not entitled to be indemnified by the Company for such
costs and expenses under the provisions of applicable law, the Company’s
Bylaws, Certificate of Incorporation, this Agreement, or otherwise. The burden
of proving by clear and convincing evidence that indemnification or advances
are not appropriate will be on the Company. Neither the failure of the
directors, stockholders, or independent legal counsel to have made a
determination prior to the commencement of the action that indemnification or
advances are proper in the circumstances because the Indemnitee has met the
applicable standard of conduct, nor an actual determination by the directors,
stockholders or independent legal counsel that the Indemnitee has not met the
applicable standard of conduct, will be a defense to the action or create a
presumption that the Indemnitee has not met the applicable standard of conduct.

 

3.2.2                     Standard.
The Indemnitee’s Expenses incurred in connection with any Proceeding
concerning the Indemnitee’s right to indemnification or advances in whole or in
part pursuant to this Agreement will be indemnified by the Company
regardless of the outcome of the Proceeding, unless a court of competent
jurisdiction determines that each of the material assertions made by the
Indemnitee in the Proceeding was not made in good faith or was frivolous.

 

5

 

4. Other
Agreements

 

4.1                               Change
in Control Event. If there is a Change in Control Event or a Potential
Change in Control Event of the Company (other than a Change in Control Event or
Potential Change in Control Event that has been approved by a majority of the
Company’s Board of Directors who were directors immediately prior to the Change
in Control Event or Potential Change in Control Event), then with respect to
all matters thereafter arising concerning the rights of the Indemnitee to be
indemnified for Indemnified Costs, the Company will seek legal advice only from
independent counsel selected by the Indemnitee, and reasonably satisfactory to
the Company, and who has not otherwise performed other services for the Company
or the Indemnitee within the last three years (“Special Independent
Counsel”). The Special Independent Counsel, among other things, will
render its written opinion to the Company and the Indemnitee as to whether and
to what extent the Indemnitee would be permitted to be indemnified under
applicable law. The Company will pay, or cause to be paid, the reasonable fees
and expenses of the Special Independent Counsel.

 

4.2                               Maintenance of Liability Insurance.

 

4.2.1                     Affirmative
Covenant of the Company. While the Indemnitee continues to serve as a
director or officer of the Company or any of its subsidiaries, and thereafter
while the Indemnitee is subject to any possible Proceeding, the Company will
maintain in full force and effect directors’ and officers’ liability insurance
(“D&O Insurance”) in reasonable
amounts from reputable insurers. The Company has no obligation, however, to
obtain or maintain D&O Insurance if it determines in good faith that
insurance is not reasonably available, the premium costs for insurance are
disproportionate to the amount of coverage provided, the coverage provided by
insurance is so limited by exclusions that it provides an insufficient benefit,
or the Indemnitee is covered by similar insurance maintained by a subsidiary of
the Company. The Company will notify promptly the Indemnitee upon termination
of all D&O Insurance. If the Company has D&O Insurance at the time it
receives a notice that a Proceeding has commenced, the Company will give prompt
notice of such commencement to the insurers as required by the respective
policies. The Company will thereafter take all necessary or desirable action to
cause such insurers to pay, on behalf of the Indemnitee, all amounts payable as
a result of such proceeding in accordance with the terms of such policies.

 

4.2.2                     Indemnitee
Named as Insured. In all D&O Insurance policies, the Indemnitee
will be named as an insured in a manner that provides the Indemnitee the same
rights and benefits accorded to the most favorably insured of the Company’s
directors and officers.

 

4.3                               Agreement
to Serve. Indemnitee will serve or continue to serve as an Agent of the
Company or any of its subsidiaries for so long as the Indemnitee is duly
elected or appointed or until the Indemnitee voluntarily resigns. Indemnitee
will give written notice to the Company at least thirty (30) days prior to
voluntarily resigning.

 

6

 

4.4                               Effect
of this Agreement on Employment Agreement. Any present or future
employment agreement between the Indemnitee and the Company is not modified by the
terms of this Agreement. Nothing contained in this Agreement creates in the
Indemnitee any right of continued employment.

 

4.5                               Nature
of Rights; Separability. The rights afforded to the Indemnitee by this
Agreement are contract rights and may not be diminished, eliminated or
otherwise affected by amendments to the Company’s Certificate of Incorporation,
Bylaws, any applicable subsidiary’s charter documents, or agreements, including
D&O Insurance policies. Each provision of this Agreement, to the extent
practicable, is a separate and distinct agreement and independent of the
others, so that if any provision of this Agreement is held to be invalid or
unenforceable for any reason, the invalidity or unenforceability will not
affect the validity or enforceability of the other provisions. To the extent
required, any provision of this Agreement may be modified by a court of
competent jurisdiction to preserve its validity and to provide the Indemnitee
with the broadest possible indemnification permitted under applicable law.

 

4.6                               Savings
Clause. If this Agreement or any portion of it is invalidated on any
ground by any court of competent jurisdiction, then the Company will
nevertheless indemnify the Indemnitee as to Indemnified Costs with respect to
any Proceeding to the full extent permitted by any applicable portion of this
Agreement that is not invalidated, or by any applicable law.

 

4.7                               Repayment
of Indemnified Costs. The Indemnitee will reimburse the Company for all
Indemnified Costs paid by the Company or any of its subsidiaries in defending
any Proceeding against the Indemnitee if and only to the extent that a court of
competent jurisdiction finally decides (and all appeals have been exhausted or
the time to file any such appeal has lapsed) that the Indemnitee is not
entitled to be indemnified by the Company for such Indemnified Costs under the
provisions of applicable law, the Company’s Bylaws, Certificate of
Incorporation, this Agreement, or otherwise. The Indemnitee will repay such
amounts advanced only if, and to the extent that, it is ultimately determined
that Indemnitee is not entitled to be indemnified for such Indemnified Costs by
the Company pursuant to this Agreement.

 

4.8                               Repayment.
The Indemnitee will promptly repay to the Company any amounts paid to the
Indemnitee pursuant to other rights of indemnification or under any insurance
policy, to the extent those payments are duplicative of payments under this
Agreement.

 

4.9                               Mutual Acknowledgment. Both
the Company and the Indemnitee acknowledge that in certain cases Federal law or
applicable public policy may prohibit the Company from indemnifying its
directors and officers under this Agreement or otherwise. The Indemnitee
understands and acknowledges that the Company has undertaken or may be
required in the future to undertake with the Securities and Exchange Commission
to submit the question of indemnification to a court in certain circumstances
for a determination of the Company’s right under public policy to indemnify the
Indemnitee.

 

7

 

5. Indemnification
Procedure

 

5.1                               Notice.
Promptly after receipt of notice that a Proceeding has commenced, the
Indemnitee will, if a claim is to be made under this Agreement, notify the
Company of that fact. The failure to notify the Company will not relieve it
from any liability that it may have to the Indemnitee except to the extent
of the Company’s material damage resulting from such failure.

 

5.2                               Company
Participation. The Company will be entitled to participate in any Proceeding
at its own expense and, except as otherwise provided below, to the extent that
it may wish, the Company may assume the defense of any Proceeding for
which indemnification is sought hereunder, with counsel reasonably satisfactory
to the Indemnitee. After the Company notifies the Indemnitee of the Company’s
election to assume the defense of a Proceeding, during the Company’s good faith
defense the Company will not be liable to the Indemnitee under this Agreement
for any Expenses subsequently incurred by the Indemnitee in connection with the
defense of the Proceeding, other than reasonable costs of investigation or as
otherwise provided below. The Indemnitee will have the right to employ the
Indemnitee’s counsel in any Proceeding, but the fees and expenses of the
counsel incurred after the Company assumes the defense of the Proceeding will
be at the expense of the Indemnitee, unless (a) the employment of counsel
by the Indemnitee has been authorized by the Company, (b) the Indemnitee
has reasonably concluded that there is be a conflict of interest between the
Company and the Indemnitee in the conduct of the defense of a Proceeding, or (c) the
Company has not in fact employed counsel to assume the defense of a Proceeding.
In each of the foregoing cases the fees and expenses of the Indemnitee’s
counsel will be at the expense of the Company. The Company will not be entitled
to assume the defense of any Proceeding brought by or on behalf of the Company or
any of its subsidiaries or as to which the Indemnitee has made the conclusion
that there may be a conflict of interest between the Company and the
Indemnitee.

 

5.3                               Settlement.
The Company will not settle or compromise any Proceeding in any manner that
would impose any penalty or limitation on the Indemnitee, constitute an
admission or acknowledgement of wrongdoing, negligence or liability in such
Proceeding or any future Proceeding regarding the same or a related subject
matter without the Indemnitee’s consent. The Indemnitee will not settle or
compromise any Proceeding without the Company’s consent. Neither the Company
nor the Indemnitee will unreasonably withhold their consent or approval under
this Agreement.

 

5.4                               Subrogation.
If the Company pays, or causes to be paid, Indemnified Costs, the Company
will be subrogated to the extent of such payment to all of the rights of
recovery of the Indemnitee against third parties. The Indemnitee will do all
things reasonably necessary to secure such rights, including the execution of
documents necessary to enable the Company effectively to bring suit to enforce
such rights.

 

8

 

6. Miscellaneous
Provisions

 

6.1                               Amendments;
Waivers. Amendments, waivers, consents and approvals under this
Agreement must be in writing and designated as such. No failure or delay in
exercising any right will be deemed a waiver of such right.

 

6.2                               Interpretation;
Governing Law. This Agreement is to be construed as a whole and in
accordance with its fair meaning. This Agreement is to be interpreted in accordance
with the laws of the State of Delaware relating to indemnification of Agents.

 

6.3                               Headings.
Headings of Sections and subsections are for convenience only and are not a
part of this Agreement.

 

6.4                               Consent to Jurisdiction. The
Company and the Indemnitee irrevocably consent to the jurisdiction of the
courts of the State of Delaware for all purposes in connection with any action
or proceeding which arises out of or relates to this Agreement and agree that
any action instituted under this Agreement will be brought only in the state
courts of the State of Delaware.

 

6.5                               Counterparts.
This Agreement may be signed in one or more counterparts and by
facsimile, and when so signed and delivered will have the same effect as if all
signatures appeared on the same document.

 

6.6                               Successors
and Assigns. This Agreement is binding upon and inures to the benefit
of each party and such party’s respective heirs, personal representatives,
successors and assigns. Nothing in this Agreement, express or implied, is intended
to confer any rights or remedies upon any other person.

 

6.7                               Expenses;
Legal Fees. Each party will pay its own expenses in the negotiation,
preparation and performance of this Agreement. Subject to Section 3.2.2,
the prevailing party in any action relating to this Agreement will be entitled
to reasonable legal fees, costs and expenses incurred in such action.

 

6.8                               Representation
by Counsel; Interpretation. Each party acknowledges that it has been
given an opportunity to be represented by counsel in connection with this
Agreement. Any rule of law, including, but not limited to, Section 1654
of the California Civil Code, or any legal decision that would require
interpretation of any claimed ambiguities in this Agreement against the party
that drafted it, has no application and is expressly waived.

 

6.9                               Specific
Performance. The Company acknowledges that in view of the uniqueness of
the matters contemplated by this Agreement, the Indemnitee would not have an
adequate remedy at law for money damages if this Agreement is not being
performed in accordance with its terms. The Company therefore agrees that the
Indemnitee will be entitled to specific enforcement of the terms hereof in
addition to any other remedy to which the Indemnitee may be entitled.

 

9

 

6.10                        Time is
of the Essence. Time is of the essence in the performance of each
provision of this Agreement.

 

6.11                        Notices.
Any notice to be given hereunder must be in writing and will be deemed
effective upon personal delivery, upon delivery by confirmed facsimile or
electronic transmission (in either case with duplicate original sent by United
States mail) or, if sent by United States mail, three (3) business days
after deposit with the United States Post Office, by registered or certified
mail, postage prepaid and addressed as follows (or to another address
designated in writing by a party):

 

 

	
  If to
  the Company:

  

  Power-One, Inc.

  740 Calle Plano

  Camarillo, California 93012-8583

  Attention: President

  	
   

  	
  If to
  the Indemnitee:

  

  At the Indemnitee’s most recent address on the books and records of the
  Company or at such other address as Indemnitee indicates to the Company

  

 

The
parties have signed this Agreement as of the date first written above.

 

 

	
   

  	
  INDEMNITEE:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  POWER-ONE, INC.:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

10Exhibit 10.11

POWER-ONE, INC.

2004 STOCK INCENTIVE PLAN

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. 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 Section 8 below, the Award shall vest and become nonforfeitable with
respect thirty-three 1¤3
percent (331¤3%)
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, second, and third
anniversaries of the date of this Award, or (ii) the date upon which the
Annual Meeting of Stockholders occurs in the year (twelve calendar months)
following the date of this Award, or occurs in the second or third year
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.

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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.   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. The
Committee may accelerate payment and vesting of the Stock Units in such
circumstances as it, in its sole discretion, may determine.

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 

 2
 

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.

 3
 

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.,

  a Delaware corporation 

  	
   

  	
  DIRECTOR

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Print Name:

  	
   

  	
   

  	
  Signature 

  
	
  Its:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Print Name

  
						

 

 4
 

CONSENT OF SPOUSE

In consideration of the execution of the foregoing
Stock Unit Award Agreement by Power-One, Inc., I,                                         ,
the spouse of the Director therein named, do hereby join with my spouse in
executing the foregoing Stock Unit Award Agreement and do hereby agree to be
bound by all of the terms and provisions thereof and of the Plan.

Dated:                     ,
20      

	
   

  	
   

  
	
   

  	
  Signature of Spouse

  
	
   

  	
   

  
	
   

  	
  Print
  Name

  

 

 5

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