ELGAR HOLDINGS INC
EX-10.4
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<DESCRIPTION>EX-10.4
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<p align="right" style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:right;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit
10.4</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:center;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">AMENDMENT
NO. 1</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:center;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">TO</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-align:center;text-autospace:none;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">EMPLOYMENT
AGREEMENT</font></u></b></p>

<p style="margin:.25in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This AMENDMENT NO.
1 TO EMPLOYMENT AGREEMENT (the &#147;<b><u><font style="font-weight:bold;">Amendment</font></u></b>&#148;),
dated as of April&nbsp;15, 2003, is by and among Elgar Holdings, Inc., a
Delaware corporation (&#147;<b><u><font style="font-weight:bold;">Holdings</font></u></b>&#148;),
Elgar Electronics Corporation, a California corporation and a wholly owned
subsidiary of Holdings (&#147;<b><u><font style="font-weight:bold;">EEC</font></u></b>&#148;),
and John P. Mei (&#147;<b><u><font style="font-weight:bold;">Executive</font></u></b>&#148;).</font></p>

<p align="center" style="margin:12.0pt 0in .0001pt;punctuation-wrap:simple;text-align:center;text-autospace:none;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">RECITALS</font></u></b></p>

<p style="margin:12.0pt 0in .0001pt;punctuation-wrap:simple;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS,
Executive, Holdings and EEC are party to an Employment Agreement, dated as of
December&nbsp;30, 2002 (the &#147;<b><u><font style="font-weight:bold;">Employment
Agreement</font></u></b>&#148;);</font></p>

<p style="margin:12.0pt 0in .0001pt;punctuation-wrap:simple;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS, Section&nbsp;4.5
of the Employment Agreement obligates Executive to purchase from Holdings, and
Holdings to issue and sell to Executive, 150,000 shares of the common stock of
Holdings at a purchase price of $0.05 per share, with such sale and purchase to
take place on or about February&nbsp;28, 2003;</font></p>

<p style="margin:12.0pt 0in .0001pt;punctuation-wrap:simple;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS, by
agreement of Executive, Holdings and EEC, the sale and purchase of those shares
has not yet occurred; and</font></p>

<p style="margin:12.0pt 0in .0001pt;punctuation-wrap:simple;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS,
Executive, Holdings and EEC desire to amend the Employment Agreement to delete
therefrom Section&nbsp;4.5 in its entirety.</font></p>

<p align="center" style="margin:12.0pt 0in .0001pt;punctuation-wrap:simple;text-align:center;text-autospace:none;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">AGREEMENT</font></u></b></p>

<p style="margin:12.0pt 0in .0001pt;punctuation-wrap:simple;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">NOW THEREFORE, in
consideration of the premises and the mutual agreements hereinafter set forth,
the parties hereto hereby agree as follows:</font></p>

<p style="margin:12.0pt 0in .0001pt;punctuation-wrap:simple;text-autospace:none;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">1.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Amendment of Section&nbsp;4.5</u>.&#160; </font></b><font size="2" style="font-size:10.0pt;">Section&nbsp;4.5 of the Agreement is hereby amended,
superseded and replaced in its entirety by the following:</font></p>

<p style="margin:12.0pt 0in .0001pt 1.0in;punctuation-wrap:simple;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><font style="font-weight:bold;">4.5.</font></b>&#160;&#160;&#160;&#160;&#160;&#160; [intentionally
omitted]&#148;</font></p>

<p style="margin:12.0pt 0in .0001pt;punctuation-wrap:simple;text-autospace:none;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">2.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Waiver</u>.</font></b><font size="2" style="font-size:10.0pt;">&#160;
Each of the parties hereto expressly acknowledges and agrees that no
other party hereto was in breach of the Employment Agreement because the sale
and purchase of shares pursuant to Section&nbsp;4.5 of the Employment Agreement
was not consummated prior to the date of this Amendment.</font></p>

<p style="margin:12.0pt 0in .0001pt;punctuation-wrap:simple;text-autospace:none;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">3.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Governing Law</u>.</font></b><font size="2" style="font-size:10.0pt;">&#160;
This Agreement shall be interpreted, construed, governed and enforced in
accordance with the laws of the State of Delaware.</font></p>

<p style="margin:12.0pt 0in .0001pt;punctuation-wrap:simple;text-autospace:none;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">4.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Counterparts</u>.&#160; </font></b><font size="2" style="font-size:10.0pt;">This Agreement may be executed in one or more
counterpart copies, each of which shall be deemed to be an original and all of
which taken together shall be deemed one and the same instrument.</font></p>

<p style="margin:12.0pt 0in .0001pt;punctuation-wrap:simple;text-autospace:none;text-indent:.5in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">5.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>No
Further Amendment</u>.&#160; </font></b><font size="2" style="font-size:10.0pt;">Except as amended hereby, the Employment
Agreement shall continue in full force and effect.</font></p>

<p style="margin:12.0pt 0in .0001pt;punctuation-wrap:simple;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">IN WITNESS WHEREOF, Holdings and EEC have caused this Agreement to be
executed on their behalf by their duly authorized officers and Executive has
executed the same as of the day and year first above written.</font></p>

<p style="margin:.25in 0in 24.0pt 3.0in;punctuation-wrap:simple;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">ELGAR
HOLDINGS, INC.</font></b></p>

<table border="0" cellspacing="0" cellpadding="0" width="49%" style="border-collapse:collapse;margin-left:3.0in;width:49.0%;">
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  <td width="19%" valign="top" style="padding:0in .7pt 0in .7pt;width:19.08%;">
  <p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="80%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:80.92%;">
  <p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Donald Glickman</font></p>
  </td>
 </tr>
 <tr>
  <td width="19%" valign="top" style="padding:0in .7pt 0in .7pt;width:19.08%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="80%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:80.92%;">
  <p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Donald Glickman<br>
  Chairman of the Board and Vice President</font></p>
  </td>
 </tr>
</table>

<p style="margin:24.0pt 0in 24.0pt 3.0in;punctuation-wrap:simple;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">ELGAR
ELECTRONICS CORPORATION</font></b></p>

<table border="0" cellspacing="0" cellpadding="0" width="49%" style="border-collapse:collapse;margin-left:3.0in;width:49.0%;">
 <tr>
  <td width="19%" valign="top" style="padding:0in .7pt 0in .7pt;width:19.08%;">
  <p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="80%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:80.92%;">
  <p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Donald Glickman</font></p>
  </td>
 </tr>
 <tr>
  <td width="19%" valign="top" style="padding:0in .7pt 0in .7pt;width:19.08%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="80%" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:80.92%;">
  <p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Donald Glickman<br>
  Chairman of the Board and Vice President</font></p>
  </td>
 </tr>
 <tr>
  <td width="19%" valign="top" style="padding:0in .7pt 0in .7pt;width:19.08%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="80%" valign="top" style="padding:0in .7pt 0in .7pt;width:80.92%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="19%" valign="top" style="padding:0in .7pt 0in .7pt;width:19.08%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="80%" valign="top" style="padding:0in .7pt 0in .7pt;width:80.92%;">
  <p style="font-size:12.0pt;margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;">&nbsp;</p>
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  <td width="100%" colspan="2" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in .7pt 0in .7pt;width:100.0%;">
  <p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ John P. Mei</font></p>
  </td>
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  <td width="100%" colspan="2" valign="top" style="border:none;padding:0in .7pt 0in .7pt;width:100.0%;">
  <p style="margin:0in 0in .0001pt;punctuation-wrap:simple;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">John P. Mei</font></p>
  </td>
 </tr>
</table>

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