Form of 1996 Stock Plan Stock Option Agreement



 Exhibit 10.3 
 PEREGRINE SEMICONDUCTOR CORPORATION 
 1996 Stock Plan 

STOCK OPTION AGREEMENT – EARLY EXERCISE 
 Unless otherwise defined herein, the terms defined in the 1996 Stock Plan shall have the same defined meanings in this Stock Option Agreement. 

 

	1.	NOTICE OF STOCK OPTION GRANT 

 The undersigned Optionee has been granted an Option to purchase Common Stock of the Company, subject to the terms and conditions of the Plan and this Option Agreement, as follows: 

 

			
	 Date of Grant
	  	mm/dd/yy
		
	Vesting Commencement Date	  	01/05/2005
		
	Exercise Price Per Share	  	$ 0.00
		
	Total Number of Shares Granted	  	####
		
	Total Exercise Price	  	$
		
	Type of Option:	  	Incentive Stock Option
		
	Term/Expiration Date:	  	Ten Years – mm/dd/yyyy
		
	Option Number	  	####

 Vesting Schedule: 

This option may be exercised at any time after the Date of Grant for all or any part of the Shares subject to this Option. 

These shares will vest and the Company’s Right of Repurchase shall lapse over the following vesting period.
Twenty-five percent (25%) of the Shares subject to the Option will vest on the one-year anniversary of the Vesting Commencement Date, and 1/48th of the Shares subject to the Option each monthly anniversary thereafter. 

 

			
	 Employee Initials
                            
	 	Company Initials
                            








 Termination Period: 
 This Option shall be exercisable for thirty-days (30) after Optionee ceases to be a Service Provider. Upon Optionee’s death or Disability, this Option may be exercised for twelve
(12) months after Optionee ceases to be a Service Provider. In no event may Optionee exercise this Option after the Term/Expiration Date as provided above. 
 This documentation replaces documentation evidencing this Option with the Date of Grant set forth above for the purpose of allowing Optionee to early exercise this Option. The documentation previously
received to evidence this Option is hereby superseded in its entirety. 
  

	II.	AGREEMENT 

 1.
Grant of Option. Peregrine Semiconductor Corporation, a Delaware corporation (the “Company”), hereby grants to the Optionee named in the Notice of Grant (the “Optionee”), an option (the “Option”) to purchase a
total number of shares of Common Stock (the “Shares”) set forth in the Notice of Grant, at the exercise price per share set forth in the Notice of Grant (the “Exercise Price”) subject to the terms, definitions and provisions of
the 1996 Stock Option Plan (the “Plan”) adopted by the Company, which is incorporated herein by reference. Unless otherwise defined herein, the terms defined in the Plan shall have the same defined meanings in this Option. 

If designated in the Notice of Grant as an Incentive Stock Option, this Option is intended to qualify as an Incentive Stock Option as
defined in Section 422 of the Code. 
 2. Exercise of Option. This Option shall be exercisable during its term in
accordance with the Exercise Schedule set out in the Notice of Grant and with the provisions of Section 9 of the Plan as follows: 
 (i) Right to Exercise. 
 (a) This Option may not be
exercised for a fraction of a share. 
 (b) In the event of Optionee’s death, disability or other
termination of employment, the exercisability of the Option is governed by Sections 6, 7 and 8 below, subject to the limitation contained in subsection 2(i)(c). 

(c) In no event may this Option be exercised after the date of expiration of the term of this Option as set forth in the
Notice of Grant. 
 (ii) Method of Exercise. This Option shall be exercisable by written notice (in the
form attached as Exhibit A) which shall state the election to exercise the Option, the number of Shares in respect of which the Option is being exercised, and such other representations and agreements as to the holder’s investment intent
with respect to such shares of Common Stock as may be required by the Company pursuant to the provisions of the Plan. Such written notice shall be signed by the Optionee and shall be delivered in person or by certified mail to the Secretary of the
Company. The written notice shall be accompanied by payment of the Exercise Price. This Option shall be deemed to be exercised upon receipt by the Company of such written notice accompanied by the Exercise Price. 

No Shares will be issued pursuant to the exercise of an Option unless such issuance and such exercise shall comply with
all relevant provisions of law and the requirements of any stock exchange upon which the Shares may then be listed. Assuming such compliance, for income tax purposes the 







 
Shares shall be considered transferred to the Optionee on the date on which the Option is exercised with respect to such Shares. 

3. Optionee’s Representations. In the event the Shares purchasable pursuant to the exercise of this Option have not been
registered under the Securities Act of 1933, as amended, at the time this Option is exercised, Optionee shall, if required by the Company, concurrently with the exercise of all or any portion of this Option, deliver to the Company his Investment
Representation Statement in the form attached hereto as Exhibit B. 
 4. Method of Payment. Payment of the Exercise
Price shall be by any of the following, or a combination thereof, at the election of the Optionee: 
 (i) cash;
or 
 (ii) check; or 
 (iii) surrender of other shares of Common Stock of the Company which (A) in the case of Shares acquired pursuant to the exercise of a Company option, have been owned by the Optionee for more than
six (6) months on the date of surrender, and (B) have a fair market value on the date of surrender equal to the Exercise Price of the Shares as to which the Option is being exercised; or 

(iv) delivery of a properly executed exercise notice together with such other documentation as the Administrator and the
broker, if applicable, shall require to effect an exercise of the Option and delivery to the Company of the sale or loan proceeds required to pay the exercise price. 
 5. Restrictions on Exercise. This Option may not be exercised if the issuance of such Shares upon such exercise or the method of payment of consideration for such shares would constitute a
violation of any applicable federal or state securities or other law or regulation, including any rule under Part 207 of Title 12 of the Code of Federal Regulations (“Regulation G”) as promulgated by the Federal Reserve
Board. As a condition to the exercise of this Option, the Company may require Optionee to make any representation and warranty to the Company as may be required by any applicable law or regulation. 

6. Termination of Relationship. In the event of termination of Optionee’s Continuous Status as an Employee or Consultant,
Optionee may, to the extent otherwise so entitled at the date of such termination (the “Termination Date”), exercise this Option during the Termination Period set out in the Notice of Grant. To the extent that Optionee was not entitled to
exercise this Option at the date of such termination, or if Optionee does not exercise this Option within the time specified herein, the Option shall terminate. 
 7. Disability of Optionee. Notwithstanding the provisions of Section 6 above, in the event of termination of Optionee’s Continuous Status as an Employee or Consultant as a result of total
and permanent disability (as defined in Section 22(e)(3) of the Code), Optionee may, but only within twelve (12) months from the date of termination of employment (but in no event later than the date of expiration of the term of this
Option as set forth in Section 10 below), exercise the Option to the extent otherwise so entitled at the date of such termination. To the extent that Optionee was not entitled to exercise the Option at the date of termination, or if Optionee
does not exercise such Option (to the extent otherwise so entitled) within the time specified herein, the Option shall terminate. 
 8. Death of Optionee. In the event of termination of Optionee’s Continuous Status as an Employee or Consultant as a result of the death of Optionee, the Option may be exercised at any time








 
within twelve (12) months following the date of death (but in no event later than the date of expiration of the term of this Option as set forth in Section 10 below), by Optionee’s
estate or by a person who acquired the right to exercise the Option by bequest or inheritance, but only to the extent the Optionee could exercise the Option at the date of death. 

9. Non-Transferability of Option. This Option may not be transferred in any manner otherwise than by will or by the laws of
descent or distribution and may be exercised during the lifetime of Optionee only by him. The terms of this Option shall be binding upon the executors, administrators, heirs, successors and assigns of the Optionee. 

10. Term of Option. This Option may be exercised only within the term set out in the Notice of Grant, and may be exercised during
such term only in accordance with the Plan and the terms of this Option. The limitations set out in Section 7 of the Plan regarding Options designated as Incentive Stock Options and Options granted to more than ten percent
(10%) shareholders shall apply to this Option. 
 11. Taxation Upon Exercise of Option. Optionee understands that,
upon exercising a nonstatutory Option, he or she will recognize income for tax purposes in an amount equal to the excess of the then fair market value of the Shares over the exercise price. However, the timing of this income recognition may be
deferred for up to six months if Optionee is subject to Section 16 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). If the Optionee is an employee, the Company will be required to withhold from Optionee’s
compensation, or collect from Optionee and pay to the applicable taxing authorities an amount equal to a percentage of this compensation income. Additionally, the Optionee may at some point be required to satisfy tax withholding obligations with
respect to the disqualifying disposition of an Incentive Stock Option. The Optionee shall satisfy his or her tax withholding obligation arising upon the exercise of this Option out of Optionee’s compensation or by payment to the Company.

 12. Tax Consequences. Set forth below is a brief summary as of the date of this Option of some of the federal and
California tax consequences of exercise of this Option and disposition of the Shares. THIS SUMMARY IS NECESSARILY INCOMPLETE, AND THE TAX LAWS AND REGULATIONS ARE SUBJECT TO CHANGE. OPTIONEE SHOULD CONSULT A TAX ADVISER BEFORE EXERCISING THIS OPTION
OR DISPOSING OF THE SHARES. 
 (i) Exercise of ISO. If this Option qualifies as an ISO, there will be no
regular federal income tax liability or California income tax liability upon the exercise of the Option, although the excess, if any, of the fair market value of the Shares on the date of exercise over the Exercise Price will be treated as an
adjustment to the alternative minimum tax for federal tax purposes and may subject the Optionee to the alternative minimum tax in the year of exercise. 
 (ii) Exercise of Nonstatutory Stock Option. If this Option does not qualify as an ISO, there may be a regular federal income tax liability and California income tax liability upon the exercise of
the Option. The Optionee will be treated as having received compensation income (taxable at ordinary income tax rates) equal to the excess, if any, of the fair market value of the Shares on the date of exercise over the Exercise Price. If Optionee
is an employee, the Company will be required to withhold from Optionee’s compensation or collect from Optionee and pay to the applicable taxing authorities an amount equal to a percentage of this compensation income at the time of exercise.

 (iii) Disposition of Shares. In the case of an NSO, if Shares are held for at least one year, any gain
realized on disposition of the Shares will be treated as long-term capital gain for federal and California income tax purposes. In the case of an ISO, if Shares transferred pursuant to the Option are held for at least one year after exercise and are
disposed of at least two years after the Date of Grant, 







 
any gain realized on disposition of the Shares will also be treated as long-term capital gain for federal and California income tax purposes. If Shares purchased under an ISO are disposed of
within such one-year period or within two years after the Date of Grant, any gain realized on such disposition will be treated as compensation income (taxable at ordinary income rates) to the extent of the difference between the Exercise Price and
the lesser of (1) the fair market value of the Shares on the date of exercise, or (2) the sale price of the Shares. 
 (iv) Notice of Disqualifying Disposition of ISO Shares. If the Option granted to Optionee herein is an ISO, and if Optionee sells or otherwise disposes of any of the Shares acquired pursuant to the
ISO on or before the later of (1) the date two years after the Date of Grant, or (2) the date one year after the date of exercise, the Optionee shall immediately notify the Company in writing of such disposition. Optionee agrees that
Optionee may be subject to income tax withholding by the Company on the compensation income recognized by the Optionee. 
 13.
Market Stand-off. The Optionee agree that, in connection with the first two (2) underwritten public offerings of the Company’s securities, (1) not to sell, make short sale of, loan, grant any options for the purpose of, or
otherwise dispose of any shares of Common Stock of the Company held by the Optionee (other than those shares included in the registration) without the prior consent of the Company or the underwriters managing any such underwritten public offering of
the Company’s securities for one hundred eighty (180) days from the effective date of any such registration, and (2) the Optionee further agrees to execute any agreement reflecting (1) above as may be requested by the
underwriters at the time of any such public offering; provided, however, that the officers and directors of the Company who own stock of the Company also agree to such restrictions. 

 

			
	 PEREGRINE SEMICONDUCTOR CORPORATION
 a Delaware corporation

		
	By:	 	 
	Title:	 	 


 OPTIONEE ACKNOWLEDGES
AND AGREES THAT THE VESTING OF SHARES PURSUANT TO THE OPTION HEREOF IS EARNED ONLY BY CONTINUING CONSULTANCY OR EMPLOYMENT AT THE WILL OF THE COMPANY (NOT THROUGH THE ACT OF BEING HIRED, BEING GRANTED THIS OPTION OR ACQUIRING SHARES HEREUNDER).
OPTIONEE FURTHER ACKNOWLEDGES AND AGREES THAT NOTHING IN THIS AGREEMENT, NOR IN THE COMPANY’S STOCK OPTION PLAN WHICH IS INCORPORATED HEREIN BY REFERENCE, SHALL CONFER UPON OPTIONEE ANY RIGHT WITH RESPECT TO CONTINUATION OF EMPLOYMENT OR
CONSULTANCY BY THE COMPANY, NOR SHALL IT INTERFERE IN ANY WAY WITH HIS RIGHT OR THE COMPANY’S RIGHT TO TERMINATE HIS EMPLOYMENT OR CONSULTANCY AT ANY TIME, WITH OR WITHOUT CAUSE. 







 Optionee acknowledges receipt of a copy of the Plan and represents that he is familiar with
the terms and provisions thereof, and hereby accepts this Option subject to all of the terms and provisions thereof. Optionee has reviewed the Plan and this Option in their entirety, has had an opportunity to obtain the advice of counsel prior to
executing this Option and fully understands all provisions of the Option. Optionee hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Administrator upon any questions arising under the Plan or this
Option. This documentation replaces documentation evidencing this Option with the Date of Grant set forth on the Notice of Grant for the purpose of allowing Optionee to early exercise this Option. The documentation previously received to evidence
this Option is hereby superseded in its entirety. 
  

							
				
	Dated:	 	  	 		 	  
		 		 		 	Optionee