Document:

Exhibit 10.4

 

EXECUTION COPY

 

July 10, 2009

 

Christopher A. White

At the address last on the records of Cowen

 

Dear Chris:

 

As you know, Cowen Group, Inc.
(“Cowen”) has entered into a Transaction Agreement and Agreement and Plan of
Merger (the “Transaction Agreement”) with LexingtonPark Parent Corp. (the “Company”),
Lexington Merger Corp., Park Exchange LLC (the “Exchange Sub”), and Ramius LLC
(“Ramius”), pursuant to which, among other things, Cowen will become a wholly
owned subsidiary of the Company and Exchange Sub will acquire substantially all
of the assets and assume all of the liabilities of Ramius (collectively, the “Transaction”).  The Company and Cowen desire to have your
continued dedication and service pending and following the Transaction.  Accordingly, we are pleased to offer you
continued employment with the Company and its subsidiaries, and we look forward
to continuing our mutually rewarding and beneficial relationship.  Cowen, the Company and you previously entered
into a letter agreement on June 3, 2009, which outlined the terms of your
continued employment (the “Prior Agreement”). 
Given that the terms of your continued employment have changed since the
parties entered into the Prior Agreement, the parties wish to enter into this
letter agreement (the “Agreement”), which will outline such updated terms of
your continued employment and will supersede the Prior Agreement.  This Agreement will become effective upon the
Effective Time (as defined in the Transaction Agreement) (the “Effective Date”)
and, as more fully set forth below, shall, as of the Effective Date, supersede
any and all prior employment agreements and letters concerning your employment
with Cowen and its subsidiaries, including, without limitation, the Prior
Agreement.

 

1.             Term.  This Agreement provides the details of the
terms of your employment from and following the Effective Date until
termination of your employment (the “Term”), and certain other terms and
conditions of your employment with the Company and its subsidiaries that
continue beyond the Term unless otherwise specified.

 

2.             Position.  You shall be employed as a Managing Director
and the Chief Financial Officer of the Company and shall report directly to the
Chief Executive Officer of the Company, and you shall also be appointed, on the
Effective Date, to serve as a member of the Company’s Operating Committee.  You shall have the duties, responsibilities
and authority commensurate with your title and position and such other duties
and responsibilities as may be reasonably assigned to you by the Chief
Executive Officer of the Company.  You
shall continue to be subject to, and must comply with, all policies and
procedures applicable to employees of the Company’s Broker-Dealer subsidiary
(the “BD Subsidiary”), as now existing or as may be modified or supplemented from
time to time by the BD Subsidiary.

 

 

3.             Compensation
and Benefits.

 

a.             Base Salary.  You will be paid a base salary at the rate of
not less than Four Hundred Thousand Dollars ($400,000) per annum (“Base Salary”),
payable in accordance with the Company’s prevailing payroll practices but no
less frequently than monthly.  The term
Base Salary as utilized in this Agreement shall refer to Base Salary as in
effect from time to time, including any increases.  Except as otherwise provided in this
Agreement, any obligation to pay your Base Salary will cease upon the
termination of your employment.

 

b.             Annual Bonus.  For each calendar year during which you are
employed by the Company, you shall be entitled to earn an annual
performance-based bonus pursuant to a Company bonus plan as determined by the
Chief Executive Officer of the BD Subsidiary in consultation with the Chief
Executive Officer of the Company (the “Internal Committee”), and, if necessary,
approved by the Compensation Committee of the Company’s Board of Directors (the
“Compensation Committee”). The total annual bonus that may be earned by you for
any calendar year is referred to herein as the “Annual Bonus.”  Your Annual Bonus shall be determined
consistently with and on the same basis as, and shall have terms and conditions
no less favorable than those that apply to, other similarly situated executives
of the Company.  Your Annual Bonuses may,
at the discretion of the Internal Committee and/or the Compensation Committee,
and consistent with similarly situated executives of the Company, include a
certain percentage of restricted securities, other stock or security-based
awards or deferred cash or other deferred compensation.

 

c.             Benefits.  During the Term, you will be entitled to
employee benefits, fringe benefits and perquisites consistent with, and on the
same basis as, similarly situated executives of the Company, subject to the
terms of the Transaction Agreement, including, without limitation, the provisions
contained in Section 7.6 thereof.

 

d.             Expense Reimbursement.  During the Term, the Company shall reimburse
you for all reasonable expenses incurred by you in the performance of your
duties in accordance with the Company’s policies applicable to similarly
situated executives of the Company.  All
reimbursements provided under this Agreement shall be made or provided in
accordance with the requirements of Section 409A (“Section 409A”) of
the Internal Revenue Code of 1986, as amended (the “Code”).

 

e.             Vacation.  During the Term, you shall be eligible for
paid-time off in accordance with the BD Subsidiary’s vacation policy.

 

4.             Restricted Stock Award.

 

a.             Award.  The Company will grant you, effective as of
the Effective Date, 115,533 restricted shares of Company common stock (“Common
Stock”) (the “Restricted Stock Award”) on the terms and conditions set forth in
this paragraph 4; provided, however, if as of the Effective Date, the Company’s
shareholders have not approved an amendment or a successor plan to the Cowen
Group, Inc. 2007 Equity and Incentive Plan and the Cowen Group, Inc.
2006 

 

2

 

Equity and Incentive Plan
(together, the “Cowen Plan”) and there are not sufficient shares under the
Cowen Plan to grant you the entire amount of shares of Common Stock subject to
the Restricted Stock Award, you will be granted a “Pro-Rata Restricted Stock
Award” on the Effective Date.  For
purposes of this Agreement, a “Pro-Rata Restricted Stock Award” means that
number of restricted shares of Common Stock equal to the product of (i) (x) the
total number of shares of Common Stock subject to your Restricted Stock Award,
divided by (y) the total number of shares of Common Stock subject to
similar restricted stock awards or restricted stock unit awards to be granted
on the Effective Date and (ii) the total number of shares of Common Stock
available for grant under the Cowen Plan on the Effective Date.

 

b.             Failure to Grant the Entire
Restricted Stock Award on the Effective Date.  In the event that the Company has not granted
you the entire Restricted Stock Award on the Effective Date, the Company shall,
by July 1, 2010, grant you any theretofore ungranted portion of the
Restricted Stock Award; provided, however, if there are not sufficient shares
available to grant you such ungranted portion of the Restricted Stock Award by July 1,
2010, the Company shall instead, in no event later than July 1, 2010, grant
you the right to receive an amount in cash equal to One Million Dollars ($1,000,000),
less the Effective Date value of the Pro-Rata Restricted Stock Award and any
other portion of the Restricted Stock Award, if any, previously granted to you
(such cash award, the “Cash Makeup Award”).

 

c.             Vesting.  The Restricted Stock Award (or the Cash
Makeup Award, as applicable) shall vest and become free of restrictions in two
equal installments on each of the second and third anniversaries of the
Effective Date, provided that you are employed by the Company or a subsidiary
thereof and have not yet given notice to terminate your employment without Good
Reason (as set forth in paragraph 6 below) as of such date.  Notwithstanding the foregoing, any
theretofore unvested portion of the Restricted Stock Award (or the Cash Makeup
Award, as applicable) shall immediately vest in full and become free of
restriction (and, in the case of the Cash Makeup Award, be paid in cash within thirty
(30) days of the date of termination), in the event that, (i) your
employment is terminated (x) by the Company other than for Cause (as
defined below), (y) due to your death or Disability (as defined below) or (z) by
you for Good Reason (as defined below) or (ii) a Change in Control of the
Company (as defined in the Cowen Group, Inc. 2007 Equity and Incentive
Plan, as may be revised to reflect the structure of the Company following the Transaction)
occurs after the Effective Date (each of the events in clauses (i) and (ii),
an “Accelerated Vesting Event”).  In the
event that an Accelerated Vesting Event occurs prior to the Company having
granted you any portion of the Restricted Stock Award or the Cash Makeup Award,
as applicable, you shall vest in full in, and be paid in cash within thirty (30)
days of the date of termination (or, in the event of a Change in Control, on the
date of such Change in Control), an amount in cash equal to the theretofore
ungranted portion of the Restricted Stock Award.

 

d.             Registration.  As of the Effective Date, the Company shall,
at its expense, reserve for issuance a number of shares of Common Stock at
least equal to the number of shares of Common Stock that will be subject to the
Restricted Stock Award and shall, as soon as reasonably possible after the
Effective Date, file a registration statement on Form S-8 (or any
successor form, or if Form S-8 is not available, other appropriate forms)
with respect to the 

 

3

 

shares of Common Stock
subject to the Restricted Stock Award. 
The Company shall thereafter maintain the effectiveness of such registration
statement or registration statements (and maintain the current status of the
prospectus or prospectuses contained therein) for so long as you hold the
Restricted Stock Award (or any portion thereof) or any of the shares of Common
Stock that were previously subject to the Restricted Stock Award, or until such
earlier date as such Restricted Stock Award and shares of Common Stock, as
applicable, may otherwise be freely sold under applicable law.

 

e.             Other Terms of Restricted
Stock Award; Form of Agreement.  The terms of your Restricted Stock Award will
be evidenced in an award agreement by and between you and the Company, which
will be substantially in the same form as (and shall in no event contain terms
less favorable to you than those contained in) the “Form of 2007 Equity
Award Agreement for Executive Officers” filed as Exhibit 10.25 to the
Cowen Group, Inc. Form 10-K for the year ended December 31, 2008,
provided that such award agreement will be modified to incorporate the terms of
this Agreement (including, without limitation, the defined terms contained
herein and the restrictive covenants set forth herein) which shall, in any
event, control.

 

5.             Termination of Employment.

 

a.             By the Company Other than
for Death, Disability or for Cause; By You for Good Reason.  If your employment is terminated (i) by
the Company for any reason other than due to (x) your death or Disability
(as defined below) or (y) for Cause (as defined below) or (ii) by you
upon resignation for Good Reason (as defined below), you shall be entitled to
receive (A) that portion of your Base Salary earned, but unpaid as of the
date of termination, paid within thirty (30) days of the date of your
termination, (B) any Annual Bonus earned by you for a prior completed
calendar year to the extent not theretofore paid and not theretofore deferred (with
any such deferred amounts to be paid in accordance with and at the times set
forth in the applicable deferral arrangement) paid at the same time as all
other Company annual bonuses are paid for the year in which your employment
terminates, but in no event later than March 15 of the calendar year
following the year in which your employment terminates (the amounts described
in clauses (A) and (B), and the times at which such amounts are paid, shall
be hereinafter referred to as the “Accrued Obligations”), and (C) in
addition to any rights you have with respect to the Restricted Stock Award
under paragraph 4 of this Agreement, (1) any outstanding equity awards
shall become fully vested and exercisable and any restrictions thereon shall
lapse effective as of your date of termination (provided that any delays in
payment or settlement set forth in such grant or award agreements that are
required under Section 409A shall remain effective) and (2) any stock
options outstanding as of your date of termination shall remain exercisable for
the remainder of the respective terms of such stock options (taking into
account any provisions of the equity incentive plan or option agreements that
cause them to expire or be replaced in connection with changes in control or
similar events) (clauses (1) and (2) collectively referred to herein
as the “Equity Benefits”).

 

b.             Death or Disability.  Your employment shall terminate on your
death.  If you become “Disabled,” the Company
may terminate your employment by giving you thirty (30) days’ written notice of
its intention to do so unless you return to full-time performance of your 

 

4

 

duties within such thirty
(30)-day period.  “Disabled” and “Disability,”
as used herein, shall mean your inability to perform the essential duties and
responsibilities of your job with or without reasonable accommodation, for a
continuous period of ninety (90) days or more, or for one hundred twenty (120)
days or more in a twelve (12)-month period, due to a physical or mental
condition.  Disputes on the issues of
Disability shall be determined by an impartial, reputable physician agreed upon
by the parties or their respective doctors. 
Upon termination under this paragraph 5b, in addition to any rights you
have under paragraph 4 of this Agreement, you or your estate shall be entitled
to receive (i) the Accrued Obligations and (ii) the Equity Benefits.

 

c.             Termination for Cause.  The Company may terminate your employment with
or without Cause.  Upon termination of
employment for Cause, you shall be entitled to receive only that portion of
your Base Salary earned, but unpaid, as of the date of termination, payable no
later than thirty (30) days after your date of termination.  For purposes of this Agreement, “Cause” shall
mean the occurrence of an event set forth in clauses (i) through (iv) below
as determined by the Company in good faith:

 

i.              your conviction of any crime (whether or not related
to your duties at the BD Subsidiary), with the exception of minor traffic
offenses;

 

ii.             fraud, dishonesty, gross negligence or substantial
misconduct in the performance of your duties and responsibilities of your
employment;

 

iii.            your material violation of or failure to comply with
the Company’s internal policies or the rules and regulations of any
regulatory or self-regulatory organization with jurisdiction over the BD
Subsidiary;

 

iv.            your failure to perform the material duties of your
position.

 

In the case of clauses (ii) through (iv) above,
to the extent your alleged breach is reasonably subject to cure, your
employment shall not be terminated for Cause unless and until you have been
given written notice and shall have failed to correct any such violation, failure
or refusal to follow instructions within ten (10) business days of such
notice.

 

d.             Termination By You without
Good Reason.  You may
terminate your employment with or without “Good Reason”.  Upon termination of your employment by you without
Good Reason, you shall be entitled to receive only that portion of your Base
Salary earned, but unpaid, as of the effective date of termination, payable no
later than thirty (30) days after the effective date of termination .  For purposes of this Agreement, “Good Reason”
shall mean:

 

i.              any requirement that
your services during the Term be rendered primarily at a location or locations
other than the Company’s or the BD Subsidiary’s offices in the New York City
metropolitan area;

 

5

 

ii.             a material diminution by the Company or the BD
Subsidiary of your roles and responsibilities, it being agreed and understood
that your roles and responsibilities may change on terms that are mutually
acceptable to you, the Company, and the BD Subsidiary, and such change will be
deemed not to be a material diminution within the meaning of this clause; or

 

iii.            any material breach of this Agreement by the Company.

 

In order to invoke a termination for Good Reason, you must
provide written notice to the Company of the existence of the conditions giving
rise to such “Good Reason” within ninety (90) days following your knowledge of
the initial existence of such condition or conditions, and the Company shall
have thirty (30) days following receipt of such written notice (the “Cure
Period”) during which it may remedy the condition.  In the event that the Company fails to remedy
the condition constituting Good Reason during the Cure Period, you must deliver
notice to the Company of your intention to terminate employment, if at all,
within ninety (90) days following the Cure Period in order for such termination
to constitute a termination for Good Reason.

 

e.             Further Effect of
Termination on Board and Officer Positions.  If your employment ends for any reason, you
agree that you will cease immediately to hold any and all officer or director
positions you then have with the Company or any subsidiary, absent a contrary
direction from the Board of Directors of the Company (which may include either
a request to continue such service or a direction to cease serving upon notice
without regard to whether your employment has ended).  You hereby irrevocably appoint the Company to
be your attorney-in-fact to execute any documents and do anything in your name
to effect your ceasing to serve as a director and officer of the Company and
any subsidiary, should you fail to resign following a request from the Company
to do so.  A written notification signed
by a director or duly authorized officer of the Company that any instrument,
document or act falls within the authority conferred by this clause will be
conclusive evidence that it does so.

 

f.              No Mitigation; Offset.  In no event shall you be obligated to seek
other employment or take any other action by way of mitigation of the amounts
payable to you under any of the provisions of this Agreement and such amounts
shall not be reduced whether or not you obtain other employment.  In the event of your termination of
employment, the Company may offset, to the fullest extent permitted by law, any
amounts due to the Company from you, or advanced or loaned to you by the
Company, from any monies owed to you or your estate by reason of your
termination, except to the extent such withholding or offset is not permitted
under Section 409A without the imposition of additional taxes or penalties
on you.

 

6.             Notice of Termination.  You shall not voluntarily terminate your
employment relationship with the Company or any of its affiliates without Good
Reason (including, due to retirement) without first giving the Company at least
one hundred eighty (180) days’ prior written notice of the effective date of
your retirement, resignation or other termination (the “Notice Period”).  Such written notice shall be sent by
certified mail to the General Counsel of the Company at the Company’s primary
New York address.  The Company retains
the right to waive the notice requirement in whole or in part or to place you
on paid leave for all or part of 

 

6

 

the Notice Period.  In the alternative, at any time after you
give notice, the Company may, but shall not be obligated to, provide you with
work and (a) require you to comply with such conditions as it may specify
in relation to transitioning your duties and responsibilities; (b) assign
you other duties; or (c) withdraw any powers vested in, or duties assigned
to you.  You and the Company shall take
all steps necessary (including with regard to any post-termination services by
you) to ensure that any termination of your employment described in this
Agreement constitutes a “separation from service” within the meaning of Section 409A,
and notwithstanding anything contained herein to the contrary, the date on
which such separation from service takes place shall be the “date of termination
of your employment.”

 

7.             Non-Solicitation.  While employed and for a period of one (1) year
following your date of termination for any reason whatsoever, you shall not,
without the prior written consent of the Company, directly or indirectly:  (a) solicit or induce, or cause others
to solicit or induce, any employees of the Company to leave the Company or in
any way modify their relationship with the Company; (b) hire or cause
others to hire any employees of the Company; (c) encourage or assist in
the hiring process of any employees of the Company or in the modification of
any such employee’s relationship with the Company, or cause others to
participate, encourage or assist in the hiring process of any employees of the
Company; or (d) directly or indirectly solicit the trade or patronage of
any clients or customers or any prospective clients or customers of the Company
with respect to any investment banking or alternative investment products,
services, trade secrets or other investment banking or alternative investment
product matters in which the Company is active, which includes, but is not
limited to, investment banking, hedge fund and private equity investments,
sales and trading and/or research.  For
purposes of paragraphs 7, 8, 9 and 10 of this Agreement, Company shall mean the
Company and its controlled affiliates. This provision shall survive the
expiration of the Term.

 

8.             Non-Competition.  During the Term (including any applicable
Notice Period), you may not, anywhere in the United States or elsewhere in the
world, directly or indirectly, be employed by, assist or otherwise be
affiliated with any Competitor of the Company. 
For purposes of this Agreement, “Competitor” of the Company shall mean
any public or private investment banking or commercial banking firm, as well as
any firm engaging in alternative investment strategies, including hedge fund
and private equity fund investments, as well as any of such firms’ subsidiaries
or controlled affiliates; provided, that ownership
for personal investment purposes only of less than 2% of the voting stock of
any publicly held corporation shall not constitute a violation hereof.

 

9.             Non-Disclosure of
Confidential Information.  You
shall not at any time, whether during your employment or following the
termination of your employment, for any reason whatsoever, directly or
indirectly, disclose or furnish to any entity, firm, corporation or person,
except as otherwise required by law or in the direct performance of your duties,
any confidential or proprietary information of the Company with respect to any
aspect of its operations, business or clients.  “Confidential or proprietary information”
shall mean information generally unknown to the public to which you gain access
by reason of your employment by the Company and includes, but is not limited
to, information relating to all present or potential customers, business 

 

7

 

and marketing plans, sales,
trading and financial data and strategies, operational costs, and employment
benefits and compensation.  This
provision shall survive the expiration of the Term.

 

10.           Company Property.  All records, files, memoranda, reports,
customer information, client lists, documents and equipment relating to the
business of the Company, which you prepare, possess or come into contact with
while you are an employee of the Company, shall remain the sole property of the
Company. You agree that upon the termination of your employment, you shall
provide to the Company all documents, papers, files or other material in your
possession and under your control that are connected with or derived from your
services to the Company.  You agree that
the Company owns all work product, patents, copyrights and other material
produced by you during your employment with the Company.  This provision shall survive the expiration
of the Term.

 

11.           Injunctive Relief.  In the event of a breach by you of your
obligations under this Agreement, the Company, in addition to being entitled to
exercise all rights granted by law, including recovery of damages, will be
entitled to specific performance of its rights under this Agreement.  You acknowledge that the Company shall suffer
irreparable harm in the event of a breach or prospective breach of paragraphs 7,
8, 9 and/or 10 hereof and that monetary damages would not be adequate
relief.  Accordingly, the Company shall
be entitled to seek injunctive relief in any federal or state court of
competent jurisdiction located in New York County, or in any state in which you
reside.  This provision shall survive the
expiration of the Term.

 

12.           Arbitration.  Any and all disputes arising out of or
relating to your employment or the termination of your employment pursuant to
this Agreement, including any statutory claims based on alleged discrimination,
will be submitted to and resolved exclusively by the American Arbitration
Association (“AAA”) pursuant to the AAA’s Employment Arbitration Rules and
Mediation Procedures.  The arbitration
shall be held in the City of New York.  The
Company and you each hereby irrevocably waive any right to a trial by jury in
any action, suit or other legal proceeding arising under or relating to any
provision of this Agreement.   The
arbitration award shall be binding upon both parties, and judgment upon the
award may be entered in a court of competent jurisdiction.

 

13.           Severability.  Should any provision herein be rendered or
declared legally invalid or unenforceable by a court of competent jurisdiction
or by the decision of an authorized governmental agency, invalidation of such
part shall not invalidate the remaining portions thereof.

 

14.           Treatment of Current Equity;
Share Lockup. 
Notwithstanding anything to the contrary in any of (i) the Cowen
Group, Inc. 2007 Equity and Incentive Plan, (ii) the Cowen Group, Inc.
2006 Equity and Incentive Plan, (iii) the Transaction Agreement, and (iv) any
other applicable agreement, contract, or arrangement between you and Cowen or
any of its subsidiaries, you hereby agree that neither the Transaction nor any
related transaction shall result in the accelerated vesting of, or lapsing of
restrictions on, any outstanding equity awards held by you as of the Effective
Date.  You shall be prohibited from
selling any portion of the shares of Common Stock held by you as of the
Effective Date or received (net of any shares sold or 

 

8

 

withheld at that time to pay
taxes) by you upon the vesting and/or exercise of equity awards granted to you
prior to the Effective Date, in either case until the first to occur of (a) the
one (1) year anniversary of the Effective Date, (b) your termination
of employment by the Company without Cause, due to your death or Disability, or
by you for Good Reason, and (c) the occurrence of a Change in Control of
the Company occurring after the Effective Date.

 

15.           Complete Agreement.  The provisions herein contain the entire
agreement and understanding of the parties regarding compensation and your
employment and shall, as of the Effective Date, fully supersede any and all
prior agreements, representations, promises or understandings, written or oral,
between them pertaining to the subject matter, including, without limitation,
the Prior Agreement.  In the event that either
(i) the Transaction is not consummated, (ii) the Transaction
Agreement is terminated in accordance with its terms or (iii) your
employment with Cowen has terminated prior to the Effective Date, this
Agreement shall be null and void ab initio and of no further force and
effect.  The provisions of this Agreement
may not be changed or altered except in writing signed by you and a duly
authorized agent of the Company.

 

16.           Choice of Law.  The interpretation and application of the
terms herein, and your employment relationship at the Company, shall be
governed by the laws of the State of New York without regard to principles of
conflict of laws.

 

17.           No Waiver.  Any failure by either party to exercise its
rights to terminate this offer or to enforce any of its provisions shall not
prejudice such party’s rights of termination or enforcement for any subsequent
or further violations, breaches or defaults by the other party.  A waiver of any provision of this Agreement
shall not be valid or effective unless memorialized in writing and signed by
both parties to this Agreement.

 

18.           Assignment.  The rights and obligations of the Company under
this Agreement will be transferable, and all of its covenants and agreements
will be binding upon and be enforceable by its successors and assigns.  You may not assign your rights under this Agreement
and the terms and conditions stated herein.

 

19.           Tax Compliance.  The Company or any of its applicable
affiliates shall withhold from any amounts payable or provided under this
Agreement such federal, state or local taxes as shall be required to be
withheld under any applicable law or regulation and other required or
applicable deductions.  If and to the
extent any portion of any payment, compensation or other benefit provided to
you in connection with your separation from service (as defined in Section 409A)
is determined to constitute “nonqualified deferred compensation” within the
meaning of Section 409A and you are a specified employee as defined in Section 409A(a)(2)(B)(i),
as determined by the Company or any of its applicable affiliates in accordance
with its procedures, by which determination you hereby agree that you are
bound, such portion of the payment, compensation or other benefit shall not be
paid before the day that is six months plus one day after the date of
separation from service (as determined under Section 409A (the “New Payment Date”), except as Section 409A
may then permit.  The aggregate of any
payments that otherwise would have been paid to you during the period between
the date of separation from service and the New Payment Date shall be paid to
you in a lump sum on such New Payment Date, and any 

 

9

 

remaining payments will be
paid on their original schedule.  If you
die during the postponement period, the amounts and entitlements delayed on
account of Section 409A of the Code shall be paid to the personal
representative of your estate on the first to occur of the New Payment Date and
thirty (30) days after the date of your death. 
For purposes of this Agreement, each amount to be paid or benefit to be
provided shall be construed as a separate payment for purposes of Section 409A,
and any payments that are due within the “short term deferral period” as defined in Section 409A
shall not be treated as deferred compensation unless applicable law requires
otherwise.  Neither the Company nor any
of its applicable affiliates nor you shall have the right to accelerate or
defer the delivery of any such payments or benefits except to the extent
specifically permitted or required by Section 409A.  All reimbursements and in-kind benefits
provided under this Agreement that constitute deferred compensation within the
meaning of Section 409A shall be made or provided in accordance with the
requirements of Section 409A, including, without limitation, that (a) in
no event shall reimbursements to you under this Agreement be made later than
the end of the calendar year next following the calendar year in which the
applicable fees and expenses were incurred, provided, that you shall have
submitted an invoice for such fees and expenses at least ten (10) days
before the end of the calendar year next following the calendar year in which
such fees and expenses were incurred; (b) the amount of in-kind benefits that
you are entitled to receive in any given calendar year shall not affect the
in-kind benefits that you are entitled to receive in any other calendar year; (c) your
right to such reimbursements and in-kind benefits may not be liquidated or
exchanged for any other benefit; and (d) in no event shall your
entitlement to such reimbursements or such in-kind benefits apply later than
your remaining lifetime (or if longer, through the twentieth (20th) anniversary
of the Effective Date).   This Agreement
is intended to comply with the provisions of Section 409A and shall, to
the extent practicable, be construed in accordance therewith.  In no event shall a tax gross-up payment be
paid later than the end of the year following the year that the related taxes,
or taxes on the underlying income or imputed income, are remitted to the
applicable taxing authority.  Terms
defined in this Agreement shall have the meanings given such terms under Section 409A
if and to the extent required to comply with Section 409A.  In any event, neither the Company nor any of
its affiliates makes any representations or warrant and shall have no liability
to you or any other person if any provisions of or payments under this
Agreement are determined to constitute deferred compensation subject to Section 409A
but not to satisfy the conditions of Section 409A.

 

20.           Survivorship.  Upon the expiration or other termination of
this Agreement or your employment, the respective rights and obligations of the
parties hereto shall survive to the extent necessary to carry out the intentions
of the parties under this Agreement.

 

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Please indicate your
acceptance of these terms by signing and returning one copy of this Agreement.  The second copy is for your records.

 

 

	
   

  	
  Sincerely,

  
	
   

  	
   

  
	
   

  	
  COWEN
  GROUP, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  J. Kevin McCarthy

  
	
   

  	
  Name: 

  	
  J.
  Kevin McCarthy

  
	
   

  	
  Title:

  	
  General
  Counsel

  
	
  ACKNOWLEDGED
  AND AGREED:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  LexingtonPark
  Parent Corp.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Marran Ogilvie

  	
   

  
	
  Name:

  	
  Marran
  Ogilvie

  	
   

  
	
  Title:

  	
  Secretary

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  AGREED AND ACCEPTED:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Signed:

  	
  /s/ Christopher A. White

  	
   

  
	
   

  	
  Christopher A. White

  	
   

  
	
   

  	
   

  
	
  Date:

  	
  July 10, 2009

  	
   

  

 

[Signature Page to White Employment Letter]

 

2Exhibit 10.3

 

INDEMNIFICATION
AGREEMENT

 

BETWEEN

 

POWER ONE,
INC.

 

AND

 

[DIRECTOR INDEMNITEE]

 

 

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

  	
  Contribution/Jointly
  Indemnifiable Claims

  	
  3

  
	
   

  	
  2.4

  	
  Partial Indemnification

  	
  4

  
	
   

  	
  2.5

  	
  Indemnification
  Hereunder Not Exclusive

  	
  4

  
	
   

  	
  2.6

  	
  Indemnification of
  Indemnified Costs of Successful Party

  	
  4

  
	
   

  	
  2.7

  	
  Indemnified Costs
  Advanced

  	
  4

  
	
   

  	
  2.8

  	
  Limitations on
  Indemnification

  	
  5

  
	
  3.

  	
  Presumptions

  	
  5

  
	
   

  	
  3.1

  	
  Presumption Regarding
  Standard of Conduct

  	
  5

  
	
   

  	
  3.2

  	
  Determination of Right
  to Indemnification

  	
  6

  
	
   

  	
   

  	
  3.2.1

  	
  Burden

  	
  6

  
	
   

  	
   

  	
  3.2.2

  	
  Standard

  	
  6

  
	
  4.

  	
  Other
  Agreements

  	
  6

  
	
   

  	
  4.1

  	
  Change in Control Event

  	
  6

  
	
   

  	
  4.2

  	
  Maintenance of
  Liability Insurance

  	
  6

  
	
   

  	
   

  	
  4.2.1

  	
  Affirmative Covenant of
  the Company

  	
  6

  
	
   

  	
   

  	
  4.2.2

  	
  Indemnitee Named as
  Insured

  	
  7

  
	
   

  	
  4.3

  	
  Agreement to Serve

  	
  7

  
	
   

  	
  4.4

  	
  Effect of this
  Agreement on Employment Agreement

  	
  7

  
	
   

  	
  4.5

  	
  Nature of Rights;
  Separability

  	
  7

  
	
   

  	
  4.6

  	
  Savings Clause

  	
  7

  
	
   

  	
  4.7

  	
  Repayment of
  Indemnified Costs

  	
  7

  
	
   

  	
  4.8

  	
  Repayment

  	
  8

  
	
   

  	
  4.9

  	
  Mutual Acknowledgment

  	
  8

  
	
   

  	
  4.10

  	
  Duration of Agreement

  	
  8

  
	
  5.

  	
  Indemnification
  Procedure

  	
  8

  
	
   

  	
  5.1

  	
  Notice

  	
  8

  

 

i

 

	
   

  	
  5.2

  	
  Company Participation

  	
  8

  
	
   

  	
  5.3

  	
  Settlement

  	
  9

  
	
   

  	
  5.4

  	
  Subrogation

  	
  9

  
	
  6.

  	
  Miscellaneous
  Provisions

  	
  9

  
	
   

  	
  6.1

  	
  Amendments; Waivers

  	
  9

  
	
   

  	
  6.2

  	
  Interpretation;
  Governing Law

  	
  9

  
	
   

  	
  6.3

  	
  Headings

  	
  9

  
	
   

  	
  6.4

  	
  Consent to Jurisdiction

  	
  9

  
	
   

  	
  6.5

  	
  Counterparts

  	
  9

  
	
   

  	
  6.6

  	
  Successors and Assigns

  	
  9

  
	
   

  	
  6.7

  	
  Expenses; Legal Fees

  	
  10

  
	
   

  	
  6.8

  	
  Representation by
  Counsel; Interpretation

  	
  10

  
	
   

  	
  6.9

  	
  Specific Performance

  	
  10

  
	
   

  	
  6.10

  	
  Time is of the Essence

  	
  10

  
	
   

  	
  6.11

  	
  Notices

  	
  10

  

 

POWER ONE,
INC.

INDEMNIFICATION AGREEMENT

 

This Indemnification Agreement (this “Agreement”) is made as of [          ],
2009, 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, consultant, fiduciary 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).

 

“DGCL”
means the General Corporation Law of the State of Delaware.

 

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

 

“Final
Determination” or “Finally Determined”
means a determination made by a court of competent jurisdiction as to which
there is no further right or option of appeal or as to which the time within
which an appeal must be filed has expired without such filing.

 

“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.

 

“Indemnitee-Related
Entities” means any corporation, limited liability company,
partnership, joint venture, trust, employee benefit plan or other enterprise
(other than the Company or any other corporation, limited liability company,
partnership, joint venture, trust, employee benefit plan or other enterprise
for which the Indemnitee has agreed, on behalf of the Company or at the Company’s
request, to serve as a director, officer, employee, consultant, fiduciary or
agent and which service is covered by the indemnity described in this
Agreement) from whom the Indemnitee may be entitled to indemnification or
advancement of expenses with respect to which, in whole or in part, the Company
may also have an indemnification or advancement obligation (other than as a
result of obligations under an insurance policy).

 

“Jointly
Indemnifiable Claims” shall be broadly construed and shall include,
without limitation, any action, suit or proceeding for which the Indemnitee
shall be entitled to indemnification or advancement of expenses from both the
Indemnitee-Related Entities and the Company pursuant to applicable law, any
agreement or the certificate of incorporation, bylaws, partnership agreement,
operating agreement, certificate of formation, certificate of limited
partnership or comparable organizational documents of the Company, or any
parent or subsidiary of the Company, or the Indemnitee-Related Entities, as
applicable.

 

2

 

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

  	
  Contribution/Jointly
  Indemnifiable Claims.

  

 

	
  a.

  	
  In
  order to provide for just and equitable contribution in circumstances in
  which the indemnification provided for herein is Finally Determined to be
  unavailable to the Indemnitee in whole or in part, it is agreed that, in such
  event, the Company shall, to the fullest extent permitted by law, contribute
  to the payment of all of the Indemnitee’s Indemnified Costs, in an amount
  that is just and equitable in the circumstances; provided, that, without
  limiting the generality of the foregoing, such contribution shall not be
  required where such holding by the court is due to any limitation on
  indemnification set forth in Section 2.7 or 5.3 hereof.

  
	
   

  	
   

  
	
  b.

  	
  Given
  that certain Jointly Indemnifiable Claims may arise due to the service of the
  Indemnitee as an Agent of the Company at the request of the Indemnitee-

  

 

3

 

	
   

  	
  Related
  Entities, the Company acknowledges and agrees that the Company shall be fully
  and primarily responsible for the payment to the Indemnitee in respect of
  indemnification or advancement of expenses in connection with any such
  Jointly Indemnifiable Claim, pursuant to and in accordance with the terms of
  this Agreement, irrespective of any right of recovery the Indemnitee may have
  from the Indemnitee-Related Entities. 
  Under no circumstance shall the Company be entitled to any right of
  subrogation or contribution by the Indemnitee-Related Entities and no right
  of advancement or recovery the Indemnitee may have from the
  Indemnitee-Related Entities shall reduce or otherwise alter the rights of the
  Indemnitee or the obligations of the Company hereunder.  In the event that any of the
  Indemnitee-Related Entities shall make any payment to the Indemnitee in
  respect of indemnification or advancement of expenses with respect to any
  Jointly Indemnifiable Claim, the Indemnitee-related entity making such
  payment shall be subrogated to the extent of such payment to all of the
  rights of recovery of the Indemnitee against the Company, and the Indemnitee
  shall execute all papers reasonably required and shall do all things that may
  be reasonably necessary to secure such rights, including the execution of
  such documents as may be necessary to enable the Indemnitee-Related Entities
  effectively to bring suit to enforce such rights.  The Company and the Indemnitee agree that
  each of the Indemnitee-Related Entities shall be third-party beneficiaries
  with respect to this Section 2.3(b) entitled to enforce this Section 2.3(b) as
  though each such Indemnitee-related entity were a party to this Agreement.

  

 

	
  2.4

  	
  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.

  
	
   

  	
   

  
	
  2.5

  	
  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.

  
	
   

  	
   

  
	
  2.6

  	
  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.

  
	
   

  	
   

  
	
  2.7

  	
  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 

  

 

4

 

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.

 

2.8                               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.                                      subject to Section 2.3(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; or

 

d.                                      indemnify the
Indemnitee if it is Finally Determined that such payment is unlawful.

 

3.                                      Presumptions

 

3.1                               Presumption Regarding Standard of Conduct.  Indemnitee shall be presumed to be entitled
to indemnification and advancement of expenses under this Agreement upon
submission of a request therefor in accordance with Section 5 of this
Agreement, as the case may be.  The
Company shall have the burden of proof in overcoming such presumption, and such
presumption shall be used as a basis for a determination of entitlement to
indemnification and advancement of expenses unless the Company overcomes such
presumption by clear and convincing evidence. 
Neither the failure of the Company to have made a determination prior to
the commencement of any action pursuant to this Agreement that indemnification
is proper in the circumstances because Indemnitee has met the applicable
standard of conduct, nor an actual determination by the Company that Indemnitee
has not met such applicable standard of conduct, shall be a defense to the
action or create a presumption that Indemnitee has not met the applicable
standard of conduct.  For purposes of
this Agreement, the termination of any action, suit or proceeding by judgment,
order, settlement (whether with or without court approval) or conviction, or
upon a plea of nolo contendere, or its equivalent, shall not create a
presumption that Indemnitee did not meet any particular standard of conduct or
have a particular belief or that it has been Finally Determined that
indemnification is not permitted under this Agreement or applicable law.

 

5

 

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 Determines 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.

 

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 it is Finally Determined that each of the material assertions made by
the Indemnitee in the Proceeding was not made in good faith or was frivolous.

 

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 

 

6

 

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.

 

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 Final Determination is made  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 

 

7

 

Indemnitee is not entitled to be indemnified for such Indemnified Costs
by the Company pursuant to this Agreement. 
For the avoidance of doubt, no other form of undertaking shall be
required of the Indemnitee other than the execution of 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 made to the
Indemnitee 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.

 

4.10                        Duration of Agreement. 
For the avoidance of doubt, the
indemnification and advancement of expenses provided under this Agreement shall
continue as to the Indemnitee even though he may have ceased to be an Agent.

 

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 

 

8

 

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 (unless the penalty imposed is a monetary amount that will
be paid in full by the Company) or limitation on the Indemnitee, or would constitute
an admission or acknowledgement of wrongdoing, negligence or liability in such
Proceeding or any future Proceeding 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.

 

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.  For the avoidance of doubt, this
Agreement may not be terminated by the Company without Indemnitee’s prior
written consent.

 

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 to the fullest extent
now or hereafter permitted by law, notwithstanding that such indemnification
may not be specifically authorized by the Company’s Certificate of
Incorporation or Bylaws or by statute as of the date hereof.

 

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. 
All of the terms and provisions of this Agreement shall be binding upon,
shall inure to the benefit of and shall be enforceable by the parties hereto 

 

9

 

and their respective successors, assigns, spouses, heirs, executors,
administrators and legal representatives. 
The Company shall require and cause any direct or indirect successor
(whether by purchase, merger, consolidation or otherwise) to all or
substantially all of the business or assets of the Company, by written
agreement in form and substance reasonably satisfactory to Indemnitee,
expressly to assume and agree to perform this Agreement in the same manner and
to the same extent that the Company would be required to perform it if no such
succession had taken place.

 

6.7                               Expenses; Legal Fees. 
Each party will pay its own expenses in the negotiation, preparation and
performance of this Agreement.

 

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.

 

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:

  	
  If to the Indemnitee:

  
	
   

  	
   

  
	
  Power One, Inc.

  	
  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

  
	
  740 Calle Plano

  
	
  Camarillo, California 93012-8583

  
	
  Attention: President

  

 

10

 

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

 

	
   

  	
  INDEMNITEE:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  POWER ONE, INC.:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name: 

  
	
   

  	
  Title:

  

 

11

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