Document:

EXHIBIT 10.46

 

MAXWELL TECHNOLOGIES, INC.

SERVICES AGREEMENT

 

This Services
Agreement (the “Agreement”) is made as of this 4th day of April, 2003, by and
between MAXWELL TECHNOLOGIES, INC., a Delaware corporation (the “Company”), and
CARLTON J. EIBL (“Eibl”).

 

RECITALS

 

WHEREAS, Eibl
and the Company are parties to an Employment Agreement dated as of November 9,
1999, as amended as of March 31, 2002 (the “Employment Agreement”); and

 

WHEREAS, the
parties wish to terminate the Employment Agreement and provide for Eibl’s
continuing relationship with the Company on the terms set forth herein.

 

AGREEMENT

 

The parties, intending to be
legally bound, agree as follows:

 

1.                                       Term
of Continued Employment.  Subject to
the terms and conditions set forth in this Agreement, the Company hereby agrees
to continue the employment of Eibl, and Eibl agrees to be employed by the
Company, for the period commencing on April 4, 2003 and ending on the
first to occur of (i) December 31, 2004 and (ii) the date on which
this Agreement is terminated by either the Company or Eibl pursuant to Section 5
hereof (the “Term”).

 

2.                                       Duties;
Other Business Activities.

 

(a)                                  Eibl
shall perform the following duties and render the following services:  (i) oversee and assist the strategic
development of the Company’s patent estate, (ii) assist with corporate
governance issues and public company disclosure and filing obligations,
including for filings with the Securities and Exchange Commission (“SEC”),
implementation of new SEC and SRO required corporate governance and disclosure
procedures, and coordination with the Chief Executive Officer, the Chief
Financial Officer and the Board of Directors of the Company (the “Board”)
regarding such filings and procedures, and (iii) serve as the Chairman and
Chief Executive Officer of PurePulse Technologies, Inc. (“PurePulse”) and
oversee and manage the activities of PurePulse, including the ongoing
development with licensees, patent estate prosecution, minority shareholders
and other efforts to secure the ultimate realization of value for PurePulse
shareholders.  In addition, Eibl shall
perform such additional duties and services as may be requested by the Board or
the Chief Executive Officer of the Company, provided that Eibl in his sole
discretion agrees to undertake such additional duties and services.

 

(b)                                 Eibl
agrees to perform the duties and render the services referenced in Section 2(a)
to the best of his ability, devoting thereto such professional time as Eibl and
the Company reasonably and in good faith determine is necessary for Eibl to
comply with his 

 

 

obligations hereunder, provided
that Eibl shall not be required to devote more than 40 hours per fiscal quarter
in the performance of his obligations hereunder.  Eibl shall continue to be entitled to maintain an office, with
secretarial support, at the Company’s corporate offices; however Eibl may
perform his duties and services hereunder at any location and at times he
reasonably chooses.  Eibl shall not be
required to travel to perform any obligations hereunder without his
consent.  Eibl and the Company agree
that Eibl may engage in any other business or investment activity (including
accepting employment or providing consulting services to one or more other
business enterprises); provided, however, that Eibl shall not
during the Term be engaged in any other business activity, whether or not such
business activity is pursued for gain or profit, that is directly competitive
with the business of the Company or its subsidiaries on the date hereof.  Eibl and the Company agree to work in good
faith to coordinate Eibl’s duties and services required hereunder with his
personal and other business activities.

 

3.                                       Compensation.  As compensation for the services to be
performed under this Agreement:

 

(a)                                  Aggregate
Compensation.  Eibl shall receive
aggregate compensation of $437,000 (the “Aggregate Compensation”) for his
services hereunder during the Term, which shall be payable in equal
semi-monthly installments pursuant to the Company’s regular payroll schedule,
commencing on the first payroll date after April 4, 2003.  Such payments shall be paid in a manner
consistent with the Company’s payroll practices, and subject to normal
withholding.

 

(b)                                 Benefits.  Eibl shall be entitled to participate in the
Company’s insurance, health, life insurance, long term disability and dental
and medical programs, as the same may exist from time to time on the terms and
conditions applicable to senior officers of the Company.  Nothing in this Agreement shall preclude the
Company from terminating or amending any employee benefit plan or program from
time to time.  The Company will
reimburse Eibl for the reasonable cost of an annual physical examination, if
Eibl elects to have the same.

 

(c)                                  Vacation.  Eibl shall not be entitled to any paid
vacation for his performance of services hereunder.

 

(d)                                 Expenses.  Eibl shall be reimbursed for all travel and
other reasonable out-of-pocket expenses actually incurred by him in connection
with the performance of his duties hereunder, subject the Company’s expense
reimbursement policies as in effect from time to time and to the receipt by the
Company of receipts and statements in a form reasonably satisfactory to it.

 

4.                                       Termination
of Employment Agreement.

 

(a)                                  Termination;
Severance.  Eibl and the Company
agree that the Employment Agreement hereby is terminated on the terms set forth
herein and that Eibl shall not be entitled to receive any severance payment
thereunder as a result of such termination.

 

(b)                                 Accrued
Vacation.  On the date hereof, the
Company shall pay Eibl for all accrued and unused vacation time that Eibl
accrued under the Employment Agreement prior to the date hereof.

 

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(c)                                  Options.  All options granted to Eibl by the Company
and outstanding on the date hereof as set forth on Exhibit A attached
hereto (the “Options”) shall continue to vest in accordance with the vesting
terms in the option agreements governing such Options so long as Eibl continues
to serve as a member of the Board or is otherwise eligible to receive grants of
options under the Company’s stock option plans.  Such Options include the options that are subject to the option
exchange program implemented in November 2002 pursuant to which substitute
options will be granted in late May 2003 with a strike price equal to the then
prevailing market price of the Company’s Common Stock.  This Section 4(c) will survive any
termination of this Agreement.

 

5.                                       Termination.

 

(a)                                  Termination
by the Company for Cause. 
Notwithstanding anything to the contrary herein contained, the Company
may terminate immediately the employment of Eibl without notice and without pay
in lieu of notice:

 

(i)                                     if
Eibl commits an act of theft, fraud or material dishonesty or misconduct
involving the property or affairs of the Company or the carrying out of Eibl’s
duties; or

 

(ii)                                  if
Eibl commits a material breach or material non-observance of any of the terms
or conditions of this Agreement provided that Eibl is given written notice of
any such breach or non-observance and fails to remedy the same within 15 days
of receipt of such notice; or

 

(iii)                               if
Eibl is convicted of a felony; or

 

(iv)                              if
Eibl or any member of his family makes any personal profit arising out of or in
connection with a transaction to which the Company or any of its subsidiaries
is a party or with which it is associated without making disclosure to and
obtaining prior written consent of the Company.

 

Upon the
termination of Eibl’s employment pursuant to this Section 5(a),
this Agreement and the employment of Eibl hereunder shall be wholly
terminated.  Upon any such termination,
Eibl shall have no claim against the Company in respect of his employment for
damages or otherwise except in respect of payment of a portion of the Aggregate
Compensation earned, due and owing to the date of termination.

 

(b)                                 Termination
by the Company Without Cause. 
Notwithstanding anything herein to the contrary, the Company may
terminate Eibl’s employment hereunder at any time, for any reason or no reason,
on not less than 30 days’ prior written notice.  In the event of termination pursuant to this Section 5(b),
Eibl will be paid in cash the entire remaining unpaid portion of his Aggregate
Compensation on the date of termination.

 

(c)                                  Termination
by Eibl.  Eibl may terminate his
employment hereunder at any time, for any reason, upon the giving of not less
than 90 days’ prior written notice to the Company.  In the event of termination by Eibl under this Section 5(c),
Eibl shall be entitled to receive only the portion of the Aggregate
Compensation through the effective date of 

 

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termination.  Upon the termination of Eibl’s employment
pursuant to this Section 5(c), this Agreement and the employment of
Eibl hereunder shall be wholly terminated. 
Upon any such termination, Eibl shall have no claim against the Company
in respect of his employment for damages or otherwise except in respect of
payment of the portion of the Aggregate Compensation earned, through the date
of termination.

 

(d)                                 Termination
by the Company Due to Death or Disability. 
The employment of Eibl shall, at the option of the Company, terminate
immediately in the event of his death or permanent disability, in which case
notice in writing from the Company shall be sent to Eibl or his legal
representative.  In the event of
termination by the Company due to death, Eibl’s estate will continue to be paid
the remaining portion of the Aggregate Compensation in installments through
December 31, 2004 as if the termination of the employment of Eibl pursuant
to this Section 5(d) had not occurred.  In the event of termination by the Company due to permanent
disability, the Company shall take all reasonable efforts so that Eibl (i)
receives payments equal to the remaining portion of the Aggregate Compensation
through December 31, 2004, as if the termination of the employment of Eibl
pursuant to this Section 5(d) had not occurred (whether through his
receipt of any disability benefit payments to which he may be entitled under
any disability insurance programs maintained by the Company in which he is a
participant or through his receipt of full or partial payments of such amounts
pursuant to this Agreement), and (ii) receives disability benefit coverage
under such disability insurance program after the expiration of the Term of
this Agreement.  Except to the extent
provided in the preceding sentence, Eibl shall be entitled to no additional
compensation under this Agreement following the date of termination under this Section 5(d),
other than the remaining Aggregate Compensation earned through the date of
termination.  For purposes of this
Agreement “permanent disability” shall mean an illness, disease, mental or
physical disability or other causes beyond Eibl’s control which makes Eibl
incapable of discharging his duties or obligations hereunder, or causes Eibl to
fail in the performance of his duties hereunder, for six consecutive months, as
determined in good faith by the Board based on a report of a physician selected
in good faith by the Board.

 

(e)                                  Payments.  Any amounts payable to Eibl under this Section 5
shall be paid on the date the payment obligation accrues, and shall be subject
to normal withholding.  Notwithstanding
anything to the contrary hereunder, Section 4(c) above will survive the
termination of this Agreement.

 

(f)                                    Exclusive
Rights.  In connection with any
termination under Section 5(b), Eibl shall have no claim against
the Company in respect of his employment for damages or otherwise except in
respect of the payments and other provisions specified in such sections.

 

(g)                                 Cooperation.  Upon any termination of employment by the
Company or by Eibl hereunder, Eibl shall cooperate with the Company, as
reasonably requested by the Company, to effect a transition of Eibl’s
responsibilities and to ensure that the Company is aware of all matters being
handled by Eibl.

 

6.                                       Resolution
of Disputes.  The parties recognize
that claims, controversies and disputes may arise out of this Agreement with
respect to Eibl’s employment, termination of employment, or other terms of this
Agreement or based on common law or statute, either during 

 

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the existence of the employment
relationship or afterwards.  The parties
agree that should any such claim, controversy or dispute arise, the parties
will use their reasonable best efforts to resolve such dispute informally,
between them.  In the event that any
such claim, controversy or dispute between the Company and Eibl cannot be
resolved within thirty (30) days after either party first gives notice in
writing that any such claim, controversy or dispute exists, either party may
then refer the matter to arbitration before JAMS/ENDISPUTE pursuant to its
rules for resolution of employment disputes.

 

(a)                                  The
parties hereby agree that referral to arbitration shall be the sole recourse of
either party under this Agreement with respect to any such claim, controversy
or dispute and that the decision of the arbitrator shall be binding on the
parties in accordance with applicable law; provided, however,
that nothing in this Section 6 shall be construed as precluding
either party from bringing an action for injunctive relief or other equitable
relief.  The parties shall keep
confidential the existence of each such the claim, controversy or dispute from
third parties (other than arbitrator), and the determination thereof, unless
otherwise required by law.  Except as
provided in the following sentence, such decision rendered by the arbitrator
shall be final and conclusive and may be entered in any court having
jurisdiction thereof as a basis of judgment and of the issuance of execution
for its collection.  In rendering his or
her decision, the arbitrator shall be bound to follow California or Federal
law, as applicable, in the same manner as would a court of law.  Any claim that the arbitrator made a mistake
or error in determining or applying the appropriate law shall be subject to
judicial review.

 

(b)                                 The
parties further agree that the party prevailing in the arbitration shall be
entitled to its reasonable attorney’s fees and that the arbitration itself
shall take place within the County of San Diego, California, and that the
internal laws of the State of California shall apply.

 

7.                                       General
Obligations of Eibl.

 

(a)                                  Eibl
agrees and acknowledges that he owes a duty of loyalty, fidelity and allegiance
to act at all times in the best interests of the Company, to not knowingly
become involved in a conflict of interest and to not knowingly do any act or
knowingly make any statement, oral or written, which would injure the Company’s
business, its interest or its reputation unless required to do so in any legal
proceeding by a competent court with proper jurisdiction.

 

(b)                                 Eibl
agrees to comply at all times with all applicable policies, rules and
regulations of the Company, including, without limitation, the Company’s policy
regarding trading in the Common Stock of the Company, as is in effect from time
to time.

 

8.                                       No
Solicitation.  Eibl agrees that in
the event he is no longer employed by the Company, for any reason, he shall not
hire, solicit or otherwise cause to be solicited for employment elsewhere,
either directly or indirectly, for a period of one year from his termination of
employment, any employee, officer or director of the Company or any individual
who chooses not to join the Company, provided that Eibl participated actively
in the recruiting of such individual.

 

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9.                                       No
Sales of Stock.  Eibl agrees that
until December 31, 2004 he will not offer, sell or contract to sell any shares
of Common Stock of the Company without the prior written consent of the
Company.

 

10.                                 Entire
Agreement.  This Agreement
constitutes the entire Agreement between the parties and contains all
agreements between them with the exception of the Company’s stock option plans
(and any stock option agreements issued thereunder) the other employee benefit
and welfare programs maintained by the Company, and the Invention and Secrecy
Agreement dated as of  November 9, 1999
and signed by Eibl, which are supplementary to this Agreement and are each
deemed to be incorporated herein by reference. 
Each party to this Agreement acknowledges that no representations,
inducements, promises or agreements, orally or otherwise, have been made by any
party, or anyone acting on behalf of any party, which are not embodied in this
Agreement, and that no agreement, statement or promise not contained in this
Agreement shall be valid or binding. 
Except for the other agreements, plans and programs referred to in this Section 10,
this Agreement also supersedes any and all other agreements and contracts
whether verbal or in writing relating to the subject matter hereof.

 

11.                                 Amendment.  Except as otherwise specifically provided
herein, the terms and conditions of this Agreement may be amended at any time
by mutual agreement of the parties; provided that before any amendment
shall be valid or effective, it shall have been reduced to writing and signed
by the Chairman of the Compensation Committee of the Board or the Chief
Executive Officer (as may be authorized by such Chairman) on behalf of the
Company and by Eibl.

 

12.                                 Invalidity.  The invalidity or unenforceability of any
particular provision of this Agreement shall not affect its other provisions,
and this contract shall be construed in all respects as if such invalid or
unenforceable provision has been omitted.

 

13.                                 Successors
and Assigns; Binding Nature.  Eibl’s
rights and obligations under this Agreement shall not be assignable,
transferable or delegable by assignment or otherwise, and any purported
assignment, transfer or delegation thereof shall be void.  This Agreement shall be binding upon, inure
to the benefit of, and be enforceable by, any purchaser of substantially all of
the Company’s assets, any successor to the Company or any assignee thereof.

 

14.                                 Assistance
in Litigation.  Eibl shall, during
and after termination of employment, upon reasonable notice, furnish such
information and proper assistance to the Company as may reasonably be required
by the Company in connection with any litigation in which it or any of its
subsidiaries or affiliates is, or may become a party. Except where Eibl is a
named defendant, Eibl shall be paid a reasonable hourly fee to be mutually
agreed upon.

 

15.                                 Indemnification.  The Company shall indemnify Eibl in
accordance with its standard indemnification policy for officers and directors
of the Company and as required by applicable law.

 

16.                                 No
Duty to Mitigate.  Eibl shall not be
required to mitigate the amount of any payment contemplated by this Agreement
(whether by seeking new employment or in any other 

 

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manner), nor shall any such
payment be reduced by any earnings that Eibl may receive from any other source
not paid for by the Company.

 

17.                                 Choice
of Law.  The validity,
interpretation, construction and performance of this Agreement shall be
governed by the laws of the State of California except for Section 7
hereof which shall be governed by, and interpreted and construed in accordance
with, the internal laws (without giving effect to choice of law principles) of
the jurisdiction in which either of said Sections is being sought to be
enforced.

 

18.                                 Notices.  All notices and other communications
required or permitted hereunder or necessary or convenient in connection
herewith shall be in writing and, if given by telegram, telecopy or telex,
shall be deemed to have been validly served, given or delivered when sent, if
given by personal delivery, shall be deemed to have been validly served, given
or delivered upon actual delivery and, if mailed, shall be deemed to have been
validly served, given or delivered three business days after deposit in the
United States mail, as registered or certified mail, with proper postage
prepaid and addressed to the party or parties to be notified, at the following
addresses:

 

If to Eibl to:

 

Carlton J.
Eibl

1903 El Camino del Teatro

La Jolla, California  92037

Telephone:  (858) 551-8237

Fax:  (858) 551-8254

 

If to the
Company to:

 

Maxwell
Technologies, Inc.

9244 Balboa Avenue 

San Diego, California  92123

Attn:  CEO 

Telephone:  (619) 576-7502

Fax:  (619) 277-6754

 

19.                                 Injunctive
Relief.  The Company and Eibl agree
that a breach of any term of this Agreement by Eibl would cause irreparable
damage to the Company and that, in the event of such breach, the Company shall
have, in addition to any and all remedies of law, the right to any injunction,
specific performance and other equitable relief to prevent or to redress the
violation of Eibl’s duties or responsibilities hereunder.

 

20.                                 Release.  If Eibl’s employment hereunder shall
terminate under Section 5(b), Eibl agrees, as a condition to his
entitlement to receive the amounts specified in such Sections to be due to him,
to execute and deliver to the Company a release in the form attached hereto as Exhibit B.  Such release shall be delivered by Eibl at
the time of termination, but shall become effective only after Eibl has
received all payments specified in this Agreement to be due to him from the
Company in respect of his termination.

 

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21.                                 Counterparts.  This Agreement may be executed in any number
of counterparts, all of which taken together shall constitute one and the same
instrument and either of the parties to this Agreement may execute this
Agreement by signing any such counterpart.

 

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IN WITNESS
WHEREOF, the parties hereto have executed this Agreement as of the date first
written above.

 

 

	
   

  	
  “Company”

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MAXWELL
  TECHNOLOGIES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/

  	
   Richard D. Balanson

  	
   

  
	
   

  	
   

  	
  Name:
  Richard D. Balanson

  
	
   

  	
   

  	
  Title: Chief
  Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Carlton
  J. Eibl

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Carlton J.
  Eibl

  
						

 

9EXHIBIT 10.47

 

INDEMNITY AGREEMENT

 

THIS INDEMNITY
AGREEMENT (this “Agreement”) dated as of May 8, 2003, is made by and between
Maxwell Technologies, Inc., a Delaware corporation (the “Company”), and
                                                        
(the “Indemnitee”).

 

R E C I T A L S:

 

A.                                   The
Company recognizes that competent and experienced persons are increasingly
reluctant to serve as directors of corporations unless they are protected by
comprehensive liability insurance or indemnification, or both, due to increased
exposure to litigation costs and risks resulting from their service to such
corporations, and due to the fact that the exposure frequently bears no
reasonable relationship to the compensation of such directors.

 

B.                                     The
statutes and judicial decisions regarding the duties of directors are often
difficult to apply, ambiguous, or conflicting, and therefore fail to provide
such directors with adequate, reliable knowledge of legal risks to which they
are exposed or information regarding the proper course of action to take.

 

C.                                     The
Company and the Indemnitee recognize that plaintiffs often seek damages in such
large amounts and the costs of litigation may be so substantial (whether or not
the case is meritorious), that the defense and/or settlement of such litigation
is often beyond the personal resources of directors.

 

D.                                    The
Company believes that it is unfair for its directors to assume the risk of
substantial judgments and other expenses which may occur in cases in which the
director received no personal profit and in cases where such person acted in
good faith.

 

E.                                      Section
145 of the General Corporation Law of Delaware (“Section 145”), under which the
Company is organized, empowers the Company to indemnify, among others, its
directors by agreement and to indemnify persons who serve, at the request of
the Company, as the directors of other corporations or enterprises, and
expressly provides that the indemnification provided by Section 145 is not
exclusive.

 

F.                                      The
Board of Directors of the Company has determined that contractual
indemnification as set forth herein is not only reasonable and prudent but
necessary to promote the best interests of the Company and its stockholders.

 

G.                                     The
Company desires and has requested the Indemnitee to serve or continue to serve
as a director of the Company.

 

H.                                    The
Indemnitee only is willing to serve, or to continue to serve, as a director of
the Company if the Indemnitee is furnished the indemnity provided for herein by
the Company.

 

 

 

 

A G R E E M E N T :

 

NOW THEREFORE,
in consideration of the mutual covenants and agreements set forth below, the
parties hereto, intending to be legally bound, hereby agree as follows:

 

22.                                 Definitions.  For purposes of this Agreement, the
following terms shall have the meanings set forth below:

 

•                  “Agent” of the
Company shall mean any person who: 
(i) is or was a director of the Company; or (ii) is or was
serving at the request of, for the convenience of, or to represent the interest
of the Company as a director of a Subsidiary of the Company or of another
foreign or domestic corporation, partnership, joint venture, trust or other
enterprise.

 

•                  “Expenses” shall
mean all direct and indirect costs of any type or nature whatsoever (including,
without limitation, all attorneys’ fees, fees of experts, witness fees, travel
fees, and all related disbursements, or other out-of-pocket costs of the types
customarily incurred in connection with prosecuting, defending or appealing,
preparing to prosecute, defend or appeal investigations, being or preparing to
be a witness in or otherwise participating in, a Proceeding or establishing or
enforcing a right to indemnification under this Agreement, Section 145 or
otherwise.

 

•                  “Proceeding”
shall mean any threatened, pending, or completed action, suit, arbitration,
hearing or other proceeding, whether civil, criminal, administrative,
legislative, investigative or any other type whatsoever.

 

•                  “Subsidiary”
shall mean any corporation of which more than 50% of the outstanding voting
securities are owned directly or indirectly by the Company.

 

23.                                 Agreement
to Serve.  The Indemnitee agrees to
serve and/or continue to serve as an Agent of the Company for so long as the
Indemnitee is duly appointed or elected and qualified in accordance with the
applicable provisions of the bylaws of the Company or of any Subsidiary
thereof, or until such time as the Indemnitee tenders his resignation in
writing or is removed from his or her position in accordance with the bylaws of
the Company or otherwise; provided, however, that nothing
contained in this Agreement is intended to create any right to continued
service with the Company or any other entity in any capacity.

 

24.                                 Indemnification.

 

(a)                                  Indemnification
in Third Party Proceedings.

 

(i)                                     Subject
to Section 10 hereof, the Company shall indemnify the Indemnitee if
the Indemnitee is a party to or threatened to be made a party to or otherwise
involved in any Proceeding (other than a Proceeding by or in the name of the
Company to procure a judgment in its favor) by reason of the fact that the
Indemnitee is or was an Agent of the Company, or by reason of any act or
inaction by him in any such capacity (including, but not limited to, any
written statement of the Indemnitee that (A) is required to be, and is, filed with
the Securities and Exchange Commission (the “SEC”) regarding the adequacy of
the Company’s internal controls or the accuracy of reports or statements filed
by the Company with the SEC pursuant to federal laws and/or administrative
regulations (each, a “Required Statement”) or (B) is made to another
officer or employee of the Company to support a Required Statement), 

 

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against any and all Expenses
and liabilities of any type whatsoever (including, but not limited to,
judgments, fines (including any excise taxes assessed with respect to any
employee benefit plan), penalties and, subject to Section 10(d) hereof,
amounts paid in settlement), actually and reasonably incurred by him in
connection with the investigation, defense, settlement or appeal of such
Proceeding, but only if the Indemnitee, subject to the presumption set forth in
Section 3(c) hereof, acted in good faith and in a manner the Indemnitee
reasonably believed to be in, or not opposed to, the best interests of the
Company, and, with respect to any criminal Proceeding, had no reasonable cause
to believe Indemnitee’s conduct was unlawful.

 

(ii)                                  The
termination of any Proceeding by judgment, order, settlement, conviction or
upon a plea of nolo contendere or its equivalent, shall not, of itself, create
a presumption that the Indemnitee did not act in good faith in a manner which
the Indemnitee reasonably believed to be in, or not opposed to, the best
interests of the Company, and, with respect to any criminal Proceeding, that
the Indemnitee had reasonable cause to believe that the Indemnitee’s conduct
was unlawful.

 

(b)                                 Indemnification
in Derivative Actions.  Subject to Section
10 hereof, the Company shall indemnify the Indemnitee if the Indemnitee is
a party to or threatened to be made a party to or otherwise involved in any
Proceeding by or in the name of the Company to procure a judgment in its favor
by reason of the fact that the Indemnitee is or was an Agent of the Company, or
by reason of any act or inaction by the Indemnitee in any such capacity
(including, but not limited to, any written statement of the Indemnitee that
(i) is a Required Statement or (ii) is made to another officer or employee of
the Company to support a Required Statement), against all Expenses actually and
reasonably incurred by the Indemnitee in connection with the investigation,
defense, settlement, or appeal of such Proceedings, but only if the Indemnitee,
subject to the presumption set forth in Section 3(c) hereof, acted in
good faith and in a manner the Indemnitee reasonably believed to be in, or not
opposed to, the best interests of the Company; provided, however,
that no indemnification under this subsection (b) shall be made in respect of
any claim, issue or matter as to which the Indemnitee shall have been finally
adjudged to be liable to the Company by a court of competent jurisdiction,
except and only to the extent that any court in which such Proceeding was
brought shall determine upon application that, despite the adjudication of
liability but in view of all the circumstances of the case, the Indemnitee is
fairly and reasonably entitled to indemnity for such expenses as such court
shall deem proper.

 

(c)                                  Conclusive
Presumption Regarding Indemnitee Conduct. 
With respect to Sections 3(a) and 3(b) hereof, the
Indemnitee shall be conclusively presumed to have acted in good faith and in a
manner Indemnitee reasonably believed to be in, or not opposed to, the best
interests of the Company, and, with respect to any criminal Proceeding, to have
had no reasonable cause to believe Indemnitee’s conduct was unlawful, unless a
determination is made that the Indemnitee has not acted in accordance with the
standards set forth above (i) by the Board of Directors of the Company by
a majority vote of a quorum thereof consisting of directors who were not
parties to the Proceeding due to which a claim is made under this Agreement,
(ii) by the stockholders of the Company by a majority vote of stockholders
who were not parties to such a Proceeding, or (iii) in a written opinion
of independent legal counsel, selection of whom has been approved by the
Indemnitee in writing or by a panel of arbitrators, one of whom is selected by
the Company, another of whom is selected by the Indemnitee and the last of whom
is selected by the first two arbitrators so selected.

 

3

 

25.                                 Indemnification
of Expenses of Successful Party. 
Notwithstanding any other provisions of this Agreement, to the extent
that the Indemnitee has been successful on the merits or otherwise in defense
of (a) any Proceeding referred to in Section 3(a) or 3(b) hereof
or (b) any claim, issue or matter therein, including the dismissal of any
action without prejudice, the Company shall indemnify the Indemnitee (to the
maximum extent permitted by law) against all Expenses actually and reasonably
incurred by the Indemnitee in connection with the investigation, defense or
appeal of such Proceeding, or any claim, issue or matter therein.

 

26.                                 Partial
Indemnification.  If the Indemnitee
is entitled under any provision of this Agreement to indemnification by the
Company for some or a portion of any Expenses or liabilities of any type
whatsoever (including, but not limited to, judgments, fines, penalties or,
subject to Section 10(d) hereof, amounts paid in settlement) actually
and reasonably incurred by him in the investigation, defense, settlement or
appeal of a Proceeding but is not entitled, however, to indemnification for the
total amount thereof, the Company shall nevertheless indemnify the Indemnitee
for the portion thereof to which the Indemnitee is entitled.

 

27.                                 Advancement
of Expenses.  Subject to Section 10(b)
hereof, the Company shall advance all reasonable Expenses incurred by the
Indemnitee in connection with the investigation, defense, settlement or appeal
of any Proceeding to which the Indemnitee is a party or is threatened to be
made a party by reason of the fact that the Indemnitee is or was an Agent of
the Company.  The Indemnitee hereby
undertakes to repay such advanced Expenses only if, and to the extent that, it
shall ultimately be determined by a final judgment or other final adjudication
that the Indemnitee is not entitled to be indemnified by the Company as
authorized by this Agreement.  The
advances to be made hereunder shall be paid by the Company to or on behalf of
the Indemnitee within 10 days following delivery of a written request therefor
by the Indemnitee to the Company.

 

28.                                 Notice
and Other Indemnification Procedures.

 

(a)                                  Notification
of Proceeding.  Promptly after receipt
by the Indemnitee of notice of the commencement of or the threat of any
Proceeding, the Indemnitee shall, if the Indemnitee believes that
indemnification with respect thereto may be sought from the Company under this
Agreement, notify the Company of the commencement or threat thereof.

 

(b)                                 Indemnification
Payments.  Any indemnification payment
pursuant to Section 3 hereof requested by the Indemnitee shall be made
no later than 10 days after receipt of the written request of the Indemnitee,
unless a good faith determination is made within said 10-day period in
accordance with one of the methods set forth in Section 3(c) hereof
that the Indemnitee is not or (subject to final judgment or other final adjudication
as provided in Section 10(a) hereof) ultimately will not be
entitled to indemnification hereunder.

 

(c)                                  Application
for Enforcement.  Notwithstanding a
determination under Section 3(c) hereof that the Indemnitee is not
entitled to indemnification with respect to any specific Proceeding, the
Indemnitee shall have the right to apply to any court of competent jurisdiction
for the purpose of enforcing the Indemnitee’s right to indemnification pursuant
to this Agreement.  In such an
enforcement hearing or Proceeding, the burden of proving by clear and
convincing evidence that indemnification or advances are not appropriate shall
be on the Company.  Neither the failure
of the Company (including its Board of Directors, stockholders, independent
legal counsel or the panel of arbitrators) to have made a determination prior
to the 

 

4

 

commencement of such action
that the Indemnitee is entitled to indemnification hereunder, nor an actual
determination by the Company (including its Board of Directors or independent
legal counsel or the panel of arbitrators) that the Indemnitee is not entitled
to indemnification hereunder, shall be a defense to the action or create any
presumption that the Indemnitee is not entitled to indemnification hereunder.

 

(d)                                 Indemnification
of Certain Expenses.  The Company shall
indemnify the Indemnitee against all expenses incurred in connection with any
hearing or proceeding under this Section 7 unless the Company prevails
by clear and convincing evidence in such hearing or proceeding.

 

29.                                 Assumption
of Defense.  In the event the
Company shall be obligated to pay the Expenses of the Indemnitee in any
Proceeding, the Company, if appropriate, shall be entitled to assume the
defense of such Proceeding, with counsel reasonably acceptable to the
Indemnitee, upon the delivery to the Indemnitee of written notice of its
election to do so.  After delivery of
such notice, approval of such counsel by the Indemnitee and the retention of
such counsel by the Company, the Company shall not be liable to the Indemnitee
under this Agreement for any fees of counsel subsequently incurred by the
Indemnitee with respect to the same Proceeding, provided that
(a) the Indemnitee shall have the right to employ separate counsel in such
Proceeding at the Indemnitee’s own expense, and (b) if (i) the
employment of separate counsel by the Indemnitee has been previously authorized
in writing by the Company, (ii) the Indemnitee’s separate counsel delivers
a written statement to the Company stating that such counsel has reasonably
concluded that there may be an actual or potential conflict of interest or
actual or potential separate or different defenses between the Company and the
Indemnitee in the conduct of any such defense or (iii) the Company shall
not, in fact, have employed counsel to assume the defense of such Proceeding
within a reasonable time, then in any such event the reasonable fees and
expenses of the Indemnitee’s counsel shall be paid by the Company.

 

30.                                 Insurance.  The Company may, but is not obligated to,
obtain directors’ and officers’ liability insurance (“D&O Insurance”) on
behalf of the Indemnitee against any liability which may be asserted against or
incurred by the Indemnitee in Indemnitee’s capacity or arising out of the
Indemnitee’s status as an Agent of the Company, whether or not the Company
would have the power to indemnify the Indemnitee hereunder.  Notwithstanding any other provision of this
Agreement, the Company shall not be obligated to indemnify the Indemnitee for
Expenses, judgments, fines or penalties which have been paid directly to the
Indemnitee by D&O Insurance.  If the
Company has D&O Insurance in effect at the time the Company receives from
the Indemnitee any notice of the commencement or threat of a Proceeding, the
Company shall give prompt notice of the commencement or threat of such
Proceeding to the insurers in accordance with the procedures set forth in the
D&O Insurance policy.  The Company
shall 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 policy.

 

31.                                 Exceptions.

 

(a)                                  Certain
Matters.  Any provision herein to the
contrary notwithstanding, the Company shall not be obligated to indemnify the
Indemnitee pursuant to the terms of this Agreement on account of any Proceeding
with respect to (i) remuneration paid to the Indemnitee if it is
determined by final judgment or other final adjudication that such remuneration
was in 

 

5

 

violation of law;
(ii) which final judgment is rendered against the Indemnitee for an
accounting of profits made from the purchase or sale by the Indemnitee of
securities of the Company pursuant to the provisions of Section 16(b) of
the Securities Exchange Act of 1934, as amended, or similar provisions of any
federal, state or local statute; or (iii) which (but only to the extent
that) it is determined by final judgment or other final adjudication that the
Indemnitee’s conduct was in bad faith, knowingly fraudulent or deliberately
dishonest.  For purposes of the
foregoing sentence, a final judgment or other adjudication may be reached in
either the underlying Proceeding or action in connection with which
indemnification is sought or a separate Proceeding or action to establish
rights and liabilities under this Agreement.

 

(b)                                 Securities
Act Liabilities.  Any provision herein
to the contrary notwithstanding, the Company shall not be obligated pursuant to
the terms of this Agreement to indemnify the Indemnitee or otherwise act in
violation of any undertaking appearing in and required by the rules and
regulations promulgated under the Securities Act of 1933, as amended (the “Act”)
in any registration statement filed with the SEC under the Act.  The Indemnitee acknowledges that paragraph
(h) of Item 512 of Regulation S-K promulgated under the Act requires
the Company to undertake in connection with any registration statement filed
under the Act to submit the issue of the enforceability of the Indemnitee’s
rights under this Agreement in connection with any liability under the Act on
public policy grounds to a court of appropriate jurisdiction and to be governed
by any final adjudication of such issue. 
The Indemnitee specifically agrees that any such undertaking shall
supersede the provisions of this Agreement and to be bound by any such
undertaking.

 

(c)                                  Claims
Initiated by the Indemnitee.  Any
provision herein to the contrary notwithstanding, the Company shall not be
obligated pursuant to the terms of this Agreement to indemnify or advance
Expenses to the Indemnitee with respect to Proceedings or claims 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 as contemplated by Section 7(c) or
any other statute or law or otherwise as required under Section 145, but
such indemnification or advancement of expenses may be provided by the Company
in specific cases if the Board of Directors of the Company finds it to be
appropriate.

 

(d)                                 Unauthorized
Settlements.  Any provision herein to
the contrary notwithstanding, the Company shall not be obligated pursuant to
the terms of this Agreement to indemnify the Indemnitee under this Agreement
for any amounts paid in settlement of a Proceeding effected without the
Company’s prior written consent. 
Neither the Company nor the Indemnitee shall unreasonably withhold
consent to any proposed settlement; provided, however, that the
Company may in any event decline to consent to (or to otherwise admit or agree
to any liability for indemnification hereunder in respect of) any proposed
settlement if the Company determines in good faith (pursuant to Section 3(c)
hereof) that the Indemnitee is not or ultimately will not be entitled to
indemnification hereunder.

 

32.                                 Nonexclusivity.  The provisions for indemnification and
advancement of Expenses set forth in this Agreement shall not be deemed
exclusive of any other rights which the Indemnitee may have under any provision
of law, the Company’s certificate of incorporation or bylaws, in any court in
which a Proceeding is brought, the vote of the Company’s stockholders or disinterested
directors, other agreements or otherwise, both as to action in the Indemnitee’s
official capacity and to action in another capacity while occupying his
position as an Agent of the Company, and the Indemnitee’s rights hereunder
shall continue after the Indemnitee has 

 

6

 

ceased acting as an Agent of
the Company and shall inure to the benefit of the heirs, executors and
administrators of the Indemnitee.  Any
provision herein to the contrary notwithstanding, the Company may provide, in
specific cases, the Indemnitee with full or partial indemnification of any
Expenses if the Board of Directors of the Company determines that such
indemnification is appropriate.

 

33.                                 Subrogation.  In the event of payment under this
Agreement, the Company shall be subrogated to the extent of such payment to all
of the rights of recovery of the Indemnitee, who, at the request and expense of
the Company, shall execute all papers required and shall do everything that may
be reasonably necessary to secure such rights, including the execution of such
documents necessary to enable the Company effectively to bring suit to enforce
such rights.

 

34.                                 Interpretation
of Agreement.  It is understood that
the parties hereto intend this Agreement to be interpreted and enforced so as
to provide indemnification to the Indemnitee to the fullest extent now or
hereafter permitted by law.

 

35.                                 Severability.  If any provision or provisions of this
Agreement shall be held to be invalid, illegal or unenforceable for any reason
whatsoever, (a) the validity, legality and enforceability of the remaining
provisions of the Agreement (including without limitation, all portions of any
paragraphs of this Agreement containing any such provision held to be invalid,
illegal or unenforceable, that are not themselves invalid, illegal or
unenforceable) shall not in any way be affected or impaired thereby; and
(b) to the fullest extent possible, the provisions of this Agreement
(including, without limitation, all portions of any paragraph of this Agreement
containing any such provision held to be invalid, illegal or unenforceable,
that are not themselves invalid, illegal or unenforceable) shall be construed
so as to give effect to the intent manifested by the provision held invalid,
illegal or unenforceable and to give effect to Section 13 hereof.

 

36.                                 Modification
and Waiver.  No supplement,
modification or amendment of this Agreement shall be binding unless executed in
writing by the parties hereto.  No
waiver of any of the provisions of this Agreement shall be deemed or shall
constitute a waiver of any other provision hereof (whether or not similar) nor
shall such waiver constitute a continuing waiver.  The indemnification rights afforded to the Indemnitee hereby are
contract rights and may not be diminished, eliminated or otherwise affected by
amendments to the certificate of incorporation or bylaws of the Company or by
other agreements.

 

37.                                 Successors
and Assigns.  The terms of this
Agreement shall bind, and shall inure to the benefit of, the successors and
assigns of the parties hereto.

 

38.                                 Notice.  Except as otherwise provided herein, any
notice or demand which, by the provisions hereof, is required or which may be
given to or served upon the parties hereto shall be in writing and, if by
telegram, telecopy or telex, shall be deemed to have been validly served, given
or delivered when sent, if by personal delivery, shall be deemed to have been
validly served, given or delivered upon actual delivery and, if mailed, shall
be deemed to have been validly served, given or delivered three business days
after deposit in the United States mails, as registered or certified mail, with
proper postage prepaid and addressed to the party or parties to be notified at
the addresses set forth on the signature page of this Agreement (or such other
address(es) as a party may designate for itself by like notice).

 

7

 

39.                                 Governing
Law.  This Agreement shall be
governed exclusively by and construed according to the laws of the State of
Delaware, as applied to contracts between Delaware residents entered into and
to be performed entirely within Delaware.

 

40.                                 Entire
Agreement.  This Agreement
constitutes the entire agreement between the parties with respect to the
subject matter hereof and supersedes all prior agreements, understandings and
negotiations, written and oral, between the parties with respect to the subject
matter of this Agreement.

 

8

 

IN WITNESS
WHEREOF, the parties hereto have entered into this Agreement effective as of
the date first above written.

 

 

	
   

  	
  THE
  “COMPANY”:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Maxwell
  Technologies, Inc.,

  a Delaware corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
  Address:
  9244 Balboa Avenue

  San Diego, CA 92123

  Attention: Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  THE
  “INDEMNITEE”:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Signature of
  the Indemnitee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Print or
  Type Name of the Indemnitee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
						

 

9

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