POWER INTEGRATIONS INC
AMD. NO. 1 TO NONSTATUTORY STOCK OPTION AGREEMENTS
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<TYPE>EX-10.37
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<FILENAME>dex1037.htm
<DESCRIPTION>AMD. NO. 1 TO NONSTATUTORY STOCK OPTION AGREEMENTS
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 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2"><B>Exhibit 10.37 </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT
FACE="Times New Roman" SIZE="2"><B>POWER INTEGRATIONS, INC. </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>AMENDMENT NO. 1 TO </B></FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>NONSTATUTORY STOCK OPTION AGREEMENTS FOR OUTSIDE DIRECTORS </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">This Amendment No.&nbsp;1 (the &#147;<B><I>Amendment</I></B>&#148;) to those certain Nonstatutory Stock Option Agreements for Outside Directors between Power Integrations, Inc. (the &#147;<B><I>Company</I></B>&#148;)
and Scott Brown (the &#147;<B><I>Optionee</I></B>&#148;) relating to option grant numbers 000886, 001802 and 002504 (collectively, the &#147;<B><I>Options</I></B>&#148;) and each dated February&nbsp;20, 2007 (collectively, the &#147;<B><I>Option
Agreements</I></B>&#148;), is made and entered into as of February&nbsp;20, 2007, by and between the Company and Optionee pursuant to Section&nbsp;13 of the Option Agreements. </FONT></P> <P STYLE="margin-top:24px;margin-bottom:0px"
ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>RECITALS </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B>W<SMALL>HEREAS</SMALL>, </B>the Company and Optionee have
determined that the option agreements initially executed by the Company and the Optionee relating to Options (the &#147;<B><I>Noncompliant Option Agreements</I></B>&#148;) did not correctly reflect the dates of grant and exercise prices of the
Options, as automatically granted to the Optionee pursuant to the 1997 Outside Directors Stock Option Plan (the &#147;<B><I>Directors Plan</I></B>&#148;), due to administrative error; </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B>W<SMALL>HEREAS</SMALL>,</B> the Noncompliant Option Agreements have been superseded by the Option Agreements, which reflect the correct dates of grant
and exercise prices prescribed by the Directors Plan; </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B>W<SMALL>HEREAS</SMALL>,</B> the exercise prices set forth in the Option
Agreements, which reflect the correct exercise prices prescribed by the Directors Plan, are lower than the erroneous exercise prices set forth in the Noncompliant Option Agreements; and </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B>W<SMALL>HEREAS</SMALL>,</B> the Optionee desires to increase the exercise prices set forth in the Option Agreements so as to ensure that Optionee does
not receive any benefit from the correction of the Noncompliant Option Agreements. </FONT></P> <P STYLE="margin-top:24px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>AGREEMENT </B></FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B>N<SMALL>OW</SMALL>, T<SMALL>HEREFORE</SMALL></B><SMALL></SMALL>, in consideration of the mutual agreements and considerations contained herein, the
receipt of which are hereby acknowledged, the undersigned hereby agree as follows: </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B>1. Section&nbsp;1.1(c) </B>of the Option Agreement:
</FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B>(a) </B>with respect to the Option with the Grant Number 000886 is hereby amended in its entirety to read as follows:
&#147;<B><I>Exercise Price</I></B>&#148; means $43.875 per share of Stock (which reflects the 2-for-1 stock split on November&nbsp;22, 1999), as adjusted from time to time pursuant to Section&nbsp;9; </FONT></P>

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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B>(b) </B>with respect to the Option with the Grant Number 001802 is hereby amended in its entirety to
read as follows: &#147;<B><I>Exercise Price</I></B>&#148; means $24.590 per share of Stock (which reflects the 2-for-1 stock split on November&nbsp;22, 1999), as adjusted from time to time pursuant to Section&nbsp;9; and </FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B>(c) </B>with respect to the Option with the Grant Number 002504 is hereby amended in its entirety to read as follows: &#147;<B><I>Exercise
Price</I></B>&#148; means $33.850 per share of Stock (which reflects the 2-for-1 stock split on November&nbsp;22, 1999), as adjusted from time to time pursuant to Section&nbsp;9. </FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B>2.</B> Except as set forth in this Amendment, the Option Agreements shall remain in full force and effect. </FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B>3. </B>This Amendment may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall
constitute one and the same instrument. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B>I<SMALL>N</SMALL> W<SMALL>ITNESS</SMALL> W<SMALL>HEREOF</SMALL></B><SMALL></SMALL>, the parties
hereto executed this <B>A<SMALL>MENDMENT</SMALL> </B>as of the date first written above. </FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2"><B>COMPANY:</B></FONT></P></TD>
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<TD VALIGN="bottom" COLSPAN="3"><FONT FACE="Times New Roman" SIZE="2"><B>P<SMALL>OWER</SMALL> I<SMALL>NTEGRATIONS</SMALL>, I<SMALL>NC</SMALL>.</B></FONT></TD></TR>
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<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">By:</FONT></TD>
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<TD VALIGN="bottom"> <P STYLE="margin-bottom:1px;border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="2">/s/ Rafael Torres</FONT></P></TD></TR>
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<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Name:</FONT></TD>
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<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">Rafael Torres</FONT></TD></TR>
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<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Title:</FONT></TD>
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<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">CFO</FONT></TD></TR>
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<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2"><B>OPTIONEE:</B></FONT></P></TD>
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<TD VALIGN="top" COLSPAN="3"> <P STYLE="margin-bottom:1px;border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="2">/s/ R. Scott Brown</FONT></P></TD></TR>
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<TD VALIGN="top" COLSPAN="3"><FONT FACE="Times New Roman" SIZE="2">Scott Brown</FONT></TD></TR>
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