Document:

exv10w3

 

    

EXHIBIT 10.3

INDEMNIFICATION AGREEMENT

     THIS INDEMNIFICATION AGREEMENT (the “Agreement”) is made as of this                      day of                                
      ,
200___, by and between United Commercial Bank, a California state-chartered bank, (the “Bank”) and
                                                            , an individual (“Indemnitee”).

RECITALS

     A. The Bank and Indemnitee recognize that unforeseen litigation may subject directors,
officers and agents to costs and expenses.

     B. The Bank desires to attract and retain the services of highly qualified individuals, such
as Indemnitee, to serve as directors, officers and agents of the Bank and to indemnify its
directors, officers and agents so as to provide them with the maximum protection permitted by law.

     In consideration of the Recitals set forth above and mutual covenants and agreements set forth
below, the Bank and Indemnitee do hereby agree as follows:

AGREEMENT

     1. Indemnification and Expense Advancement.

          (a) Proceedings Other than by Right of the Bank. The Bank shall indemnify Indemnitee
if Indemnitee was or is a party or is threatened to be made a party to any proceeding (other than
an action by or in the right of the Bank to procure a judgment in its favor) by reason of the fact
that Indemnitee is or was an Agent (as defined in Section 1(i) below) of the Bank, against costs,
expenses, judgments, fines, settlements and other amounts actually and reasonably incurred in
connection with such proceeding if Indemnitee acted in good faith and in a manner Indemnitee
reasonably believed to be in the best interests of the Bank and, in the case of a criminal
proceeding, has no reasonable cause to believe the conduct of Indemnitee was unlawful. 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 Indemnitee did not act
in good faith and in a manner which Indemnitee reasonably believed to be in the best interests of
the Bank or that Indemnitee had reasonable cause to believe that Indemnitee’s conduct was unlawful.

          (b) Proceedings By or in the Right of the Bank. The Bank shall indemnify Indemnitee
if Indemnitee was or is a party or is threatened to be made a party to any threatened, pending or
completed action by or in the right of the Bank to procure a judgment in its favor by reason of the
fact that Indemnitee is or was an Agent of the Bank, against expenses actually and reasonably
incurred by Indemnitee in connection with the defense or settlement of such action if Indemnitee
acted in good faith, in a manner Indemnitee believed to be in the best interests of the

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Bank and its shareholders; except that no indemnification shall be made under this Section 1(b) for
any of the following:

               (i) In respect of any claim, issue or matter as to which Indemnitee shall have been adjudged
to be liable to the Bank in the performance of Indemnitee’s duty to the Bank and its shareholders,
unless and only to the extent that the court in which such proceeding is or was pending shall
determine upon application that, in view of all the circumstances of the case, Indemnitee is fairly
and reasonably entitled to indemnity for the expenses which such court shall determine;

               (ii) Of amounts paid in settling or otherwise disposing of a pending action without court
approval; or

               (iii) Of expenses incurred in defending a pending action which is settled or otherwise
disposed of without court approval.

          (c) Determination of Right of Indemnification. Any indemnification under Sections
1(a) and (b) shall be made by the Bank only if authorized in the specific case, upon a
determination that indemnification of Indemnitee is proper in the circumstances because Indemnitee
has met the applicable standard of conduct set forth above in Sections 1(a) and (b) by any of the
following:

               (i) A majority vote of a quorum consisting of directors who are not parties to such
proceeding; or

               (ii ) If such a quorum of directors is not obtainable, by independent legal counsel in a
written opinion; or

               (iii) Approval of the shareholders by the affirmative vote of a majority of the shares
entitled to vote represented at a duly held meeting at which a quorum is present or by the written
consent of shareholders as provided in the Bylaws, with the shares owned by the person to be
indemnified not being entitled to vote thereon; or

               (iv) By the court in which such proceeding is or was pending upon application made by the Bank
or its Agent or attorney or other person rendering services in connection with the defense, whether
or not such application by the Agent, attorney or other person is opposed by the Bank.

          (d) Advances of Expenses. Expenses (including reasonable attorneys’ and experts’
fees), costs, and charges incurred in defending any proceeding shall be advanced promptly by the
Bank prior to the final disposition of such proceeding upon receipt of a written undertaking by or
on behalf of Indemnitee to repay such amount unless it shall be determined ultimately that
Indemnitee is entitled to be indemnified as authorized in this Section 1. The form of such
undertaking shall be substantially similar to Exhibit A hereto.

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          (e) Indemnification Against Expenses of Successful Party. Notwithstanding the other
provisions of this Section 1, to the extent that Indemnitee has been successful on the merits in a
defense of any proceeding, claim, issue or matter referred to in Sections 1(a) and (b), Indemnitee
shall be indemnified against all expenses actually and reasonably incurred by Indemnitee in
connection therewith.

          (f) Right of Indemnitee to Indemnification Upon Application; Procedure Upon
Application. Any indemnification provided for in Sections 1(a), (b) or (e) shall be made no
later than ninety (90) days after the Bank is given notice of request by Indemnitee, provided that
any indemnification under Sections 1(a) and (b) is authorized pursuant to Section 1(c). Any such
request for indemnification must be made within ninety (90) days of the final adjudication,
dismissal, or settlement of the matter for which Indemnitee seeks indemnification, unless an appeal
is filed, in which case the request may be made within ninety (90) days after the appeal is
resolved (hereafter referred to as “Final Disposition”). Upon such notice, if a quorum of
directors who were not parties to the action, suit, or proceeding giving rise to indemnification is
obtainable, the Bank shall within two (2) weeks call a Board of Directors meeting to be held within
four (4) weeks of such notice, to make a determination as to whether Indemnitee has met the
applicable standard of conduct. Otherwise, if a quorum consisting of directors who were not
parties in the relevant action, suit, or proceeding is not obtainable, the Bank shall retain (at
the Bank’s expense) independent legal counsel chosen by the Bank within two (2) weeks to make such
determination.

               If notice of a request for payment of a claim under any statute, under this Agreement, or
under the Bank’s Articles of Incorporation or Bylaws providing for indemnification or advance of
expenses has been given to the Bank by Indemnitee, and such claim is not paid in full by the Bank
within ninety (90) days of the later occurring of the giving of such notice and Final Disposition
in case of indemnification and ten (10) days of the giving of such notice in case of advance of
expenses, Indemnitee may, but need not, at any time thereafter bring an action against the Bank to
receive the unpaid amount of the claim or the expense advance and, if successful, Indemnitee shall
also be paid for the expenses (including reasonable attorneys’ and experts’ fees) of bringing such
action. It shall be a defense to any such action (other than an action brought to enforce a claim
for expenses incurred in connection with any action, suit, or proceeding in advance of its Final
Disposition) that Indemnitee has not met the standards of conduct which make it permissible under
applicable law for the Bank to indemnify Indemnitee for the amount claimed, and Indemnitee shall be
entitled to receive interim payment of expenses pursuant to Section 1(d) unless and until such
defense may be finally adjudicated by court order or judgment from which no further right of appeal
exists. Neither the failure of the Bank (including its Board of Directors, independent legal
counsel, or its shareholders) to have made a determination that indemnification of Indemnitee is
proper in the circumstances because Indemnitee has met the applicable standard of conduct required
by applicable law, nor an actual determination by the Bank (including its Board of Directors or its
independent legal counsel) that Indemnitee has not met such applicable standard of conduct, shall
create a presumption that Indemnitee has or has not met the applicable standard of conduct.

          (g) Insurance. The Bank may purchase and maintain insurance on behalf of any person
who is or was an Agent against any liability asserted against such person and

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incurred by him or
her in any such capacity, or arising out of his or her status as such, whether or not the Bank
would have the power to indemnify such person against such liability under the provisions of this
Section 1.

          (h) Optional Means of Assuring Payment. Upon request by an Indemnitee certifying that
Indemnitee has reasonable grounds to believe Indemnitee may be made a party to a proceeding for
which Indemnitee may be entitled to be indemnified under this Section 1, the Bank may, but is not
required to, create a trust fund, grant a security interest or use other means (including, without
limitation, a letter of credit) to ensure the payment of such sums as may become necessary to
effect indemnification as provided herein.

          (i) Definition of Agent. For the purposes of this Agreement, “Agent” means any person
who is or was a director, officer, employee or other agent of the Bank, or is or was serving at the
request of the Bank as a director, officer, employee or agent of another foreign or domestic Bank,
partnership, joint venture, trust or other enterprise, or was a director, officer, employee or
agent of a foreign or domestic Bank which was a predecessor Bank of the Bank or of another
enterprise at the request of such predecessor Bank; “proceeding” means any threatened, pending or
completed action or proceeding, whether civil, criminal, administrative or investigative; and
“expenses” includes without limitation reasonable attorneys’ and experts’ fees and any expenses of
establishing a right to indemnification.

          (j) Indemnification under Section 204(a)(11) of the California General Corporation
Law. Subject to the provisions of California General Corporation Law Section 204(a)(11) and
any other applicable law, notwithstanding any other provisions of this Section 1, the following
shall apply to the indemnification of Indemnitee:

               (i) The Bank shall indemnify Indemnitee pursuant to this Section 1(l) if the Bank would be
required to indemnify Indemnitee pursuant to Sections 1(a) or (b) if in Section 1(a) or (b) the
phrase “in a manner Indemnitee reasonably believed to be in the best interests of the Bank” is
replaced with the phrase “in a manner Indemnitee did not believe to be contrary to the best
interests of the Bank.” If pursuant to Sections 1(c) and (f) the person making the Section 1(a)
and/or (b) conduct standard determination determines that such standard has not been satisfied,
such person shall also determine whether this Section 1(l)(i) conduct standard has been satisfied;

               (ii) There shall be a presumption that Indemnitee met the applicable standard of conduct
required to be met in Section 1(c) for indemnification, rebuttable by clear and convincing evidence
to the contrary;

               (iii) The Bank shall have the burden of proving that Indemnitee did not meet the applicable
standard of conduct in Section 1(c);

               (iv) In addition to the methods provided for in Section 1(c), a determination that
indemnification is proper in the circumstances because that Indemnitee met the applicable standard
of conduct may also be made by the arbitrator in any arbitration proceeding in which such matter is
or was pending; and

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               (v) Unless otherwise agreed to in writing between an Indemnitee and the Bank in any specific
case, indemnification may be made under Section 1(b) for amounts paid in settling or otherwise
disposing of a pending action without court approval.

     2. Changes.

          In the event of any change, after the date of this Agreement, in any applicable law, statute,
or rule which expands the right of a California state-chartered bank to indemnify a member of its
board of directors, its officers or its Agents, such changes shall automatically expand, without
further action of the parties, Indemnitee’s rights and the Bank’s obligations, under this
Agreement. In the event of any change in any applicable law, statute or rule which narrows the
right to indemnify a member of its board of directors, its officers or its Agents, such changes, to
the extent not otherwise required by such law, statute or rule to be applied to this Agreement,
shall have no effect on this Agreement or the parties’ rights and obligations hereunder. In the
event of an amendment to the Bank’s Bylaws which expands the right to indemnify a member of its
board of directors, its officers or its Agents, such change shall automatically expand, without
further action of the parties, Indemnitee’s rights and Bank’s obligations under this Agreement. In
the event of any amendment to the Bank’s Bylaws which narrows such right of a California
state-chartered bank to indemnify a member of its board of directors, its officers or its Agents,
such change shall only apply to the indemnification of Indemnitee for acts committed, or lack of
action, by Indemnitee after such amendment. The Bank agrees to give Indemnitee prompt written
notice of amendments to the Bank’s Bylaws which concern indemnification.

     3. Nonexclusivity.

          The indemnification provided by this Agreement shall not be deemed exclusive of any rights to
which Indemnitee may be entitled under the Bank’s Articles of Incorporation, its Bylaws, any
agreement, any vote of shareholders or disinterested Directors, the California General Corporation
Law, or otherwise, both as to action in Indemnitee’s official capacity and as to action in any
other capacity while holding such office (an “Indemnified Capacity”). The indemnification provided
under this Agreement shall continue as to Indemnitee for any action taken or not taken while
serving in an Indemnified Capacity even though such Indemnitee may have ceased to serve in an
Indemnified Capacity at the time of any action, suit or other covered proceeding, and shall inure
to the benefit of the heirs, executors, and administrators of Indemnitee.

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     4. Partial Indemnification.

          If Indemnitee is entitled under any provision of this Agreement to indemnification by the Bank
for some or a portion of the expenses, judgment, fines or penalties actually or reasonably incurred
by Indemnitee in the investigation, defense, appeal or settlement of any civil or criminal action,
suit or proceeding, but not, however, for the total amount thereof, the Bank shall nevertheless
indemnify Indemnitee for the portion of such expenses, judgments, fines or penalties to which
Indemnitee is entitled pursuant to this Agreement.

     5. Potential Limitations.

          Both the Bank and Indemnitee acknowledge that in certain instances, California state law and
federal banking laws and regulations, federal law or public policy may override applicable state
law and prohibit the Bank from indemnifying its directors and officers under this Agreement or
otherwise. For example, the Bank and Indemnitee acknowledge that the federal regulators have taken
the position that indemnification is not permissible for liabilities arising under certain federal
securities laws, and federal legislation prohibits indemnification for certain ERISA violations.
Indemnitee understands and acknowledges that the Bank has undertaken or may be required in the
future to undertake with federal regulators to submit questions of indemnification to a court in
certain circumstances for a determination of the Bank’s right under public policy to indemnify
Indemnitee. Furthermore, Indemnitee and Bank acknowledge that the extent of (i) indemnification
permissible under Section 204(a)(11) of the California General Corporation Law has not been
judicially determined; therefore, the enforceability of Indemnitee’s rights under Section 1(l) is
uncertain; and (ii) advancement of expenses and indemnification of Indemnitee in the event of a
proceeding or action described in Section 7(a) below, is also uncertain and may not be permissible
or may be subject to applicable regulatory restrictions.

     6. Severability.

          Nothing in this Agreement is intended to require or shall be construed as requiring the Bank
to do or fail to do any act in violation of applicable law. The Bank’s inability, pursuant to
court order, to perform its obligations under this Agreement shall not constitute a breach of the
Agreement. If the application of any provision or provisions of the Agreement to any particular
facts or circumstances shall be held to be invalid or unenforceable by any court of competent
jurisdiction, then (i) the validity and enforceability of such provision or provisions as applied
to any other particular facts or circumstances and the validity of other provisions of this
Agreement shall not in any way be affected or impaired thereby and (ii) such provision(s) shall be
reformed without further action by the parties to make such provision(s) valid and enforceable when
applied to such facts and circumstances with a view toward requiring the Bank to indemnify
Indemnitee to the fullest extent permissible by law.

     7. Exceptions.

          Notwithstanding any other provision herein to the contrary, the Bank shall not be obligated
pursuant to the terms of this Agreement:

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          (a) Regulatory Agency Proceedings. To indemnify Indemnitee for expenses, penalties or
other payments incurred in an administrative proceeding or action threatened instituted by a bank
regulatory agency, which proceeding or action results in a final order imposing injunctive or
similar relief or assessing civil money penalties or in any other resolution requiring or
preventing action by the Indemnitee; or

          (b) Claims Initiated by Indemnitee. To indemnify or advance expenses to Indemnitee
with respect to proceedings or claims (except counter-claims or cross-claims) initiated or brought
voluntarily by 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 by the California General Corporation Law, but such indemnification or
advancement of expenses may be provided by the Bank in specific cases if the Board of Directors
finds it to be appropriate; or

          (c) Lack of Good Faith. To indemnify Indemnitee for any expenses incurred by
Indemnitee with respect to any proceeding instituted by Indemnitee to enforce or interpret this
Agreement, if a majority of the Bank’s directors or a court of competent jurisdiction determines
that the material assertions made by Indemnitee in such proceeding were not made in good faith or
was frivolous; or

          (d) Insured Claims. To indemnify Indemnitee for expenses or liabilities of any type
whatsoever (including, but not limited to, judgments, fines, ERISA excise taxes or penalties, and
amounts paid in settlement) which have been paid directly to Indemnitee by an insurance carrier
under a policy of officers’ and directors’ liability or other insurance maintained by the Bank; or

          (e) Claims under Section 16(b). To indemnify Indemnitee for expenses or the payment
of profits arising from the purchase and sale by Indemnitee of securities in violation of Section
16(b) of the Securities Exchange Act of 1934, as amended, or any similar successor statute.

     8. Counterparts.

          This Agreement may be executed in one or more counterparts, each of which shall constitute an
original.

     9. Successors and Assigns.

          This Agreement shall be binding upon the Bank and its successors and assigns, and shall inure
to the benefit of Indemnitee and Indemnitee’s estate, heirs, and legal representatives and
permitted assigns. Indemnitee may not assign this Agreement without the prior written consent of
the Bank.

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     10. Attorneys’ Fees.

          In the event that any action is instituted by Indemnitee under this Agreement to enforce or
interpret any of the terms hereof, Indemnitee shall be entitled to be paid all court costs and
expenses, including reasonable attorneys’ and experts’ fees, incurred by Indemnitee with respect to
such action, unless as a part of such action, the court of competent jurisdiction determines that
each of the material assertions made by Indemnitee as a basis for such action were not made in good
faith or were frivolous. In the event of an action instituted by or in the name of the Bank under
this Agreement or to enforce or interpret any of the terms of this Agreement, Indemnitee shall be
entitled to be paid all court costs and expenses, including reasonable attorneys’ and experts’
fees, incurred by Indemnitee in defense of such action (including with respect to Indemnitee’s
counterclaims and cross-claims made in such action), unless as a part of such action the court
determines that each of Indemnitee’s material defenses to such action were made in bad faith or
were frivolous.

     11. Notice.

          All notices, requests, demands and other communications under this Agreement shall be in
writing and shall be deemed duly given (i) if delivered by hand and signed for by the party
addressee, on the date of such receipt, or (ii) if mailed by certified or registered mail with
postage prepaid, on the third business day after the date postmarked. Addresses for notice to
either party are as shown on the signature page of this Agreement, or as subsequently modified by
written notice.

     12. Section Headings.

          The Section headings in this Agreement are solely for convenience and shall not be considered
in its interpretation.

     13. Waiver.

          A waiver by either party of any term or condition of the Agreement or any breach thereof, in
any one instance, shall not be deemed or construed to be a waiver of such term or condition or of
any subsequent breach thereof.

     14. Entire Agreement; Amendment.

          This instrument contains the entire integrated Agreement between the parties hereto and
supersedes all prior negotiations, representations or agreements, whether written or oral except
for the Bank’s Articles of Incorporation and Bylaws. It may be amended only by a written
instrument signed by a duly authorized officer of Bank and by Indemnitee.

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     15. Choice of Law and Forum.

          Except for that body of law governing choice of law, this Agreement shall be governed by, and
construed in accordance with, internal laws of the State of California which govern transactions
between California residents.

     16. Mediation/Arbitration.

          (a) All disputes, claims or controversies arising out of or relating to this Agreement
(collectively, “Disputes”) shall be submitted to non-binding mediation by either party to an
impartial mediator, as agreed to by the parties, and appointed through JAMS in San Francisco,
California, for a good faith effort at resolution. The mediator shall review the Dispute within
thirty (30) days of submission or at such other time provided the parties so agree. Any mediation
fee shall be paid equally among the parties. Any Dispute which is not resolved through such
mandatory mediation shall be settled by final and binding arbitration before a single neutral
arbitrator of JAMS in accordance with the then current Commercial Arbitration Rules of the American
Arbitration Association in San Francisco, California. Judgment on the award rendered by the
arbitrator may be entered in any court in California. In the event that any Dispute between
Indemnitee and the Bank should result in arbitration, the prevailing party in the Dispute shall be
entitled to recover from the other party all reasonable fees, costs and expenses of enforcing any
right of the prevailing party, including, without limitation, reasonable attorneys’ fees, experts’
fees, and expenses. Each party agrees that the Dispute as mediated and/or arbitrated and the final
resolution of such Dispute shall be considered to be confidential information, and shall be kept
confidential by each party.

     (b) Indemnitee specifically acknowledges and understands that by agreeing to this provision,
Indemnitee is waiving all rights to have his or her claims brought, investigated, and/or
adjudicated by an administrative agency, or heard before a judge or jury. Indemnitee also
understands that Indemnitee’s rights to discovery may be lesser or narrower in arbitration, that
there may be fees and costs associated with mediation and/or arbitration that Indemnitee may not
otherwise have, and that Indemnitee is waiving substantial time that Indemnitee might otherwise
have to make a claim, prepare his or her case, or investigate his or her claims. The claims
include claims of any kind relating to Indemnitee’s relationship with the Bank, including claims
relating to compensation, discrimination, any benefits, status as an officer, director or Agent of
the Bank, conflict of interest, or any other claim or dispute relating to or arising out of
Indemnitee’s relationship with the Bank. The underlying Disputes shall be fully and finally
resolved through arbitration, including any right to permanent injunctive relief.

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     17. Consideration.

          Part of the consideration the Bank is receiving from Indemnitee to enter into this Agreement
is Indemnitee’s agreement to serve or to continue to serve, as applicable, for the present as an
officer, director or Agent of the Bank. Nothing in this Agreement shall preclude Indemnitee from
resigning as an officer, director or Agent of the Bank nor the Bank, by action of its shareholders,
board of directors, or officers, as the case may be, from terminating Indemnitee’s services as an
officer, director or Agent, as the case may be, with or without cause.

[Remainder of page intentionally left blank]

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

	 	 	 	 	 	 	 
	INDEMNITEE:	 	 	 	UCBH HOLDINGS, INC.
	 
	 	 	 	 	 	 
	 

	 	 	 	By	 	 
	 

	 	 	 	 	 	 
	Signature
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	Printed Name and Title
	 

Printed Name

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 
	(address)	 	 	 	(address)

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EXHIBIT A

UNDERTAKING TO REPAY ADVANCEMENT

OF EXPENSES

     A. Indemnitee is or has been a director, officer, employee or other agent of UNITED COMMERCIAL
BANK, a California state-chartered bank (the “Bank”); and

     B. On account of such fact, Indemnitee was or is or is threatened to be made a party to the
proceeding described and designated hereinafter (the “Proceeding”); and

     C. Indemnitee has requested that the Bank advance to Indemnitee, prior to final disposition of
the Proceeding, Indemnitee’s costs and expenses incurred in defense of the Proceeding; and

     D. As a condition to advancement of such expenses, the Bank has required that the following
undertaking be made by or on behalf of Indemnitee.

The undersigned herein undertakes as follows:

     1. This undertaking is executed in accordance with and is subject to Section 317 of the
California General Corporation Law, and that certain Indemnification Agreement between Indemnitee
and the Bank dated                                         , and is subject to all provisions, including definitions of
terms, thereof.

     2. Indemnitee was or is or is threatened to be made a party to the following proceeding:

	 	 	 	 	 
	Name of Claimant or Title	 	 
	of Action or Proceeding:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Court or Agency	 	 
	(if any):
	 	 	 	 
	 	 	 

 A-1 

 

	 	 	 	 	 
	Date Filed Or Presented:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Status:
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	Indemnitee’s Counsel:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Nature and Amount	 	 
	of Claim:
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	 	 	 

     3. In consideration of the advancement by the Bank of Indemnitee’s expenses incurred or to be
incurred in defense of the Proceeding, the undersigned hereby undertakes to repay all amounts
advanced by the Bank on account of Indemnitee’s defense of the Proceeding, unless it shall be
determined ultimately that Indemnitee is entitled to be indemnified with respect to the Proceeding
in accordance with Section 317 of the California General Corporation Law.

	 	 	 	 	 	 	 
	Date:
	 	 	 	 	 	 
	 

	 	 
	 	 	 	 
	 

	 	 	 	 	 	(Signature of Indemnitee)
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	(Printed Name of Indemnitee)

 A-2exv10w1

 

Exhibit 10.1

[Volterra Letterhead]

August 5, 2007

Mike Burns

[Address omitted for privacy reasons]

			
	Re:	 	Employment Terms

Dear Mike:

Volterra Semiconductor Corporation (the “Company”) is pleased to offer you the position of Vice
President and Chief Financial Officer, reporting to Jeff Staszak, President and Chief Executive
Officer of the Company. Your duties and responsibilities shall be assigned to you by the Company,
consistent with the above-described position. You will work at the Company’s headquarters,
currently located at 3839 Spinnaker Ct., Fremont, CA 94538. The Company may change your position,
duties, and work location from time to time in its discretion.

Your compensation will initially be $8,269.23 bi-weekly ($215,000 per year), less payroll
deductions and all required withholdings. You will be paid bi-weekly and you will be eligible for
the following standard Company benefits: Medical, Dental, Vision, Life/ADD, LTD, 401k, ESPP
(Employee Stock Purchase Plan), PTO (Paid Time-Off) and holidays. You will initially accrue PTO at
the rate of 15 days per year, in accordance with the Company’s standard policies and procedures.
Details about these benefits are provided in the Company’s employee handbook and Summary Plan
Descriptions, available for your review. In addition to the standard company benefits, and subject
to approval by the Company’s Board of Directors or a committee thereof (the “Board”), you will also
be eligible to participate in the Company’s annual Management Bonus Program, with an initial target
bonus equal to up to thirty percent (30%) of your annual salary. Please note that the Company’s
compensation and benefits policies may change from time to time in its discretion.

Subject to approval by the Board, and pursuant to the Company’s 2004 Equity Incentive Plan (the
“Plan”), the Company shall grant you an option to purchase 100,000 shares of the Company’s common
stock (the “Option”) at the fair market value as determined in accordance with the Plan. The
Option grant shall be effective on the first day of the month following the date you commence
employment (the “Grant Date”), and shall be subject to the terms and conditions of the Plan and
your grant agreement. Your Option shall be subject to a four year vesting schedule, under which
twenty-five percent (25%) of your Option shares will vest after twelve (12) months following the
Grant Date, with the remaining shares vesting in equal quarterly installments over the next three
years, until either the Option is fully vested or your employment ends, whichever occurs first.

On your start date, the Company will pay you a sign-on bonus in the amount of $65,000, less
required payroll deductions and withholdings (the “Bonus”). If within the first year of your
employment (the “Initial Year”), you resign your employment, or if during such Initial Year the
Company terminates your employment for Cause (as defined herein), you agree to repay a pro rata
portion of the Bonus, in proportion to the number of months employed during such Initial Year. If
the Company terminates your employment without Cause during such Initial Year, you shall not be
required to repay the Bonus. For purposes of this letter, “Cause” shall mean a termination by the
Company for any one or more of the following reasons: (i) embezzlement, misappropriation of
corporate funds, or other acts of dishonesty; (ii) the conviction, plea of guilty, or nolo
contendere to any felony or of any misdemeanor involving moral turpitude; (iii) engagement in any
activity that you know or should know could materially harm the business or reputation of the
Company; (iv) material violation of any statutory, contractual, or common law duty or obligation
owed by you to the Company; (v) material breach of your Employee Proprietary Information and

 

 

Inventions Agreement; or (vi) repeated failure to substantially perform your assigned duties or
responsibilities. This bonus does not affect the at-will nature of your employment.

As a Company employee, you will be expected to abide by Company policies and procedures, and
acknowledge in writing that you have read and will comply with the Company’s employee handbook. As
a condition of
employment, you must read, sign and comply with the attached Employee Proprietary Information and
Inventions Assignment which prohibits unauthorized use or disclosure of Company proprietary
information.

In your work for the Company, you will be expected not to use or disclose any confidential
information, including trade secrets, of any former employer or other person to whom you have an
obligation of confidentiality. Rather, you will be expected to use only that information which is
generally known and used by persons with training and experience comparable to your own, which is
common knowledge in the industry or otherwise legally in the public domain, or which is otherwise
provided or developed by the Company. You agree that you will not bring onto Company premises or
use in your work for the Company any unpublished documents or property belonging to any former
employer or third party that you are not authorized to use and disclose. You represent further
that you have disclosed to the Company any contract you have signed that may restrict your
activities on behalf of the Company. By accepting employment with the Company, you are
representing that you will be able to perform your job duties within these guidelines.

Normal business hours are from 9:00 a.m. to 6:00 p.m., Monday through Friday. As an exempt
salaried employee, you will be expected to work additional hours as required by the nature of your
work assignments.

Your employment relationship is at will, and nothing in this Agreement shall affect the at-will
nature of your employment. You may terminate your employment with Company at any time and for any
reason whatsoever simply by notifying the Company. Likewise, Company may terminate your employment
at any time, with or without cause or advance notice. Your employment at-will status can only be
modified in a written agreement signed by you and by another officer of the Company. As required
by law, this offer is subject to satisfactory proof of your right to work in the United States.

This letter, together with your Employee Proprietary Information and Inventions Agreement, forms
the complete and exclusive statement of your employment agreement with the Company. The terms in
this letter supersede any other agreements or promises made to you by anyone, whether oral or
written. This letter agreement cannot be changed except in a written agreement signed by you and a
duly authorized officer of the Company.

Please sign and date this letter and the enclosed Employee Proprietary Information and Inventions
Agreement, and return them to me by August 7, 2007, if you wish to accept employment at the Company
under the terms described above. If you accept our offer, we would like you to start on August 20,
2007.

 

 

Note: This offer will be contingent upon a successful completion of the mandatory background check.
Please feel free to contact us in case of any questions on the process. Thank you.

We look forward to your favorable reply and to a productive and enjoyable work relationship.

Sincerely,

	 	 	 	 	 
	 	 	 
	/s/ Jeff Staszak
 	 	 
	Jeff Staszak 	 	 
	President and Chief Executive Officer

Volterra Semiconductor Corporation 	 	 

I accept your offer as stated and will begin employment on August 20, 2007.

Accepted:

	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	/s/ Mike Burns

 

Mike Burns

	 	 
	 	August 6, 2007
 

Date
	 	 

Attachment: Employee Proprietary Information and Inventions Agreement

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