Form of Employee Performance Unit Award Certificate



 Exhibit 10.4 
 [Semtech logo] 
 FORM OF 
 LONG-TERM STOCK INCENTIVE PLAN 
 PERFORMANCE UNIT AWARD CERTIFICATE 
 THIS AWARD is made this [Date] (the “Award Date”) by Semtech Corporation, a Delaware corporation (the “Company”), to [Name] (the
“Participant”). 
 R E C I T A L S 
 A. The Company has established the Company’s Long-Term Stock Incentive Plan (the Plan”) in order to provide employees and directors of the Company with an opportunity to acquire shares of the Company’s
common stock, par value $0.01 per share (the “Common Stock”). 
 B. The Plan Administrator has determined that it would be in the
best interests of the Company and its stockholders to grant the performance unit award (the “Award”) described in this Award Certificate to the Participant as compensation, as an inducement to remain in the service of the Company, and as
an incentive for increasing efforts during such service. 
 NOW, THEREFORE, this Award is made on the following terms and conditions:

 1. Definitions and Incorporation. The terms used in this Award Certificate shall have the meanings given to such terms in the Plan.
The Plan is hereby incorporated in and made a part of this Award Certificate as if fully set forth herein. 
 2. Award of Performance
Units. Pursuant to the Plan, the Company hereby awards to the Participant as of the date hereof an Award with respect to [Number] performance units (subject to adjustment in accordance with Section 3(d) of the Plan) (the “Performance
Units”), which Performance Units are restricted and subject to forfeiture on the terms and conditions hereinafter set forth. As used herein, the term “performance unit” shall mean a non-voting unit of measurement which is deemed
solely for purposes of calculating the amount of payment under the Plan and this Award Certificate to be equivalent to one outstanding share of the Company’s Common Stock (subject to adjustment in accordance with Section 3(d) of the Plan.
The Performance Units shall be used solely as a device for the determination of the payment to eventually be paid to the Participant if such Performance Units vest pursuant to Sections 4 or 7 hereof. The Performance Units shall not be treated as
property or as a trust fund of any kind. 
 3. Limitations on Rights as a Shareholder/Dividends and Voting. The Participant shall have
no rights as a shareholder of the Company, no dividend rights and no voting rights, with respect to the Performance Units and any shares of Common Stock underlying such Performance Units. 
 4. Vesting. Subject to Sections 6 and 7 below, the Award shall vest and become nonforfeitable based on the Company’s achievement of the
performance goals set forth on Exhibit A attached hereto for the Performance Period (as defined below). The number of Performance Units that vest and become payable under the Award shall be determined based on 
  

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the level of results or achievement of the targets set forth on Exhibit A. Subject to Section 7, any Performance Units subject to the Award that do not
vest in accordance with Exhibit A shall terminate as of the last day of the Performance Period. Except as otherwise expressly provided herein, the Participant has no right to pro-rated vesting with respect to the Award if his or her services
terminates before any applicable vesting date with respect to the Award (regardless of the portion of the vesting period the Participant was actually in the service of the Company and/or any of its subsidiaries). For purposes of this Award
Certificate, the “Performance Period” shall mean the period of [number] years covering [identify fiscal period(s)]. 
 5. Timing and Manner of Payment of Performance Units. Subject to Sections 6, 7 and 8 below,
upon or as soon as practicable after the last day of the Performance Period, but in all events by the 15th day of
the third calendar month following the calendar month in which the last day of the Performance Period occurs, the Company shall (i) deliver to the Participant a number of shares of Common Stock (either by delivering one or more certificates for
such shares or by entering such shares in book entry form, as determined by the Plan Administrator in its discretion) equal to one-half (1/2) of the number of Performance Units subject to the Award that had vested as of the last day of the
Performance Period, and (ii) make a cash payment to the Participant with respect to the remaining one-half (1/2) of the number of Performance Units that had vested as of the last day of the Performance Period in an amount equal to
(i) the per-share closing price of a share of Common Stock on the last day of the Performance Period, multiplied by (ii) one-half (1/2) of the number of Performance Units that had vested as of the last day of the Performance Period.
The Company’s obligation to deliver shares of Common Stock or otherwise make payment with respect to vested Performance Units is subject to the condition precedent that the Participant or other person entitled under the Plan to receive any
shares or any such payment with respect to the vested Performance Units deliver to the Company any representations or other documents or assurances required pursuant to Section 5(b) of the Plan. The Company may, in its sole discretion, either
ignore fractional share interests or settle them in cash. 
 6. Effect of Termination of Employment or Services. If the Participant
ceases to be employed by or ceases to provide services to the Company or any of its subsidiaries, the following rules shall apply (the last day that the Participant is employed by or provides services to the Company or any of its subsidiaries is
referred to as the Participant’s “Separation Date”): 
  

	 	(a)	other than as expressly provided below in this Section 6, the Participant’s Performance Units, to the extent unvested on the Separation Date, shall terminate on the
Separation Date; and 

  

	 	(b)	 if the termination of the Participant’s employment or services is as a result of the Participant’s death or “Disability” (as defined below),
(a) the Participant’s Performance Units, to the extent not previously terminated as of the Separation Date, shall continue to be eligible to vest following the Separation Date in accordance with Exhibit A; (b) the Participant’s
Performance Units shall be subject to pro-rata vesting such that the number of Performance Units subject to the Award that shall become vested as of the last day of the Performance Period shall equal (i) the number of Performance Units subject
to the Award that would have become vested as of the last day of the Performance Period in accordance 



  

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with Exhibit A (assuming no termination of employment had occurred), multiplied by (ii) a fraction, the numerator of which shall be the number of whole
months during the Performance Period the Participant was employed by or rendered services to the Company or one of its subsidiaries, and the denominator of which shall be [number of months in Performance Period], and (c) any Performance Units
subject to the Award that do not vest in accordance with the foregoing clause (b) shall terminate as of the last day of the Performance Period. 


 If any unvested Performance Units are terminated hereunder, such Performance Units shall automatically terminate and be cancelled as of the applicable termination date without payment of any consideration by the
Company and without any other action by the Participant, or the Participant’s beneficiary or personal representative, as the case may be. 
 For purposes of this Award Certificate, “Disability” means a “total and permanent disability” within the meaning of Section 22(e)(3) of the Code or as otherwise determined by the Plan Administrator. 
 7. Effect of Change in Control. In the event of the occurrence, at any time after the Award Date and prior to the end of the Performance Period,
of an event described in Sections 3(d)(i) or (ii) of the Plan (which generally covers certain mergers or similar reorganizations) that the Company does not survive (or does not survive as a public company in respect of its Common Stock) or a
Change in Control (as defined below) (an “Acceleration Event”), then, unless the Plan Administrator has made a provision for the substitution, assumption, exchange or other continuation or settlement of the Award or the Award would
otherwise continue in accordance with its terms in the circumstances, the Performance Period shall terminate immediately prior to such Acceleration Event, and the number of Performance Units subject to the Award that shall vest upon such
Acceleration Event shall be determined in accordance with Exhibit A based on the Company’s actual performance for the shortened Performance Period and after pro-rating the performance goals set forth on Exhibit A to reflect the shortened
Performance Period. Any Performance Units subject to the Award that do not vest after giving effect to the preceding sentence shall terminate as of the occurrence of such Acceleration Event. For purposes hereof, a “Change in Control” shall
mean (i) a merger or consolidation in which the stockholders of the Company immediately prior to such merger or consolidation do not hold, immediately after such merger or consolidation, more than 50% of the combined voting power of the
surviving or acquiring entity (or parent corporation thereof), or (ii) the sale of substantially all of the assets of the Company or assets representing over 50% of the operating revenues of the Company, or (iii) any person shall become
the beneficial owner of over 50% of the Company’s outstanding Common Stock or the combined voting power of the Company’s then outstanding voting securities entitled to vote generally, or become a controlling person as defined in Rule 405
promulgated under the Securities Act. 
 8. Section 409A. Notwithstanding anything to the contrary herein or in the Plan, if the
Participant is a “specified employee” within the meaning of Section 409A, and, as a result of that status, any portion of the payments hereunder would otherwise be subject to taxation pursuant to Section 409A of the Code, the
Participant shall not be entitled to any payments upon a separation from service until the earlier of (i) the date which is six (6) months after his or her separation from service for any reason other than death, or (ii) the date of
the Participant’s death; provided that the first such payment thereafter shall include all amounts that would have been paid earlier but for such six (6) month delay. 
  

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 9. Non-transferability of Award. This Award is personal and, prior to the time they have become
vested pursuant to Sections 4 or 7 hereof, neither the Performance Units nor any rights hereunder may be transferred, assigned, pledged or hypothecated by the Participant in any way (whether by operation of law or otherwise), other than by will or
the laws of descent and distribution, nor shall any such rights be subject to execution, attachment or similar process. Except as otherwise provided herein, any attempted alienation, assignment, pledge, hypothecation, attachment, execution or
similar process, whether voluntary or involuntary, with respect to all or any part of the Participant’s unvested rights under this Award, shall be null and void. 
 10. No Right to Continued Employment or Service. The vesting schedule requires continued employment or service through each applicable vesting date as a condition to the vesting of the applicable installment of
the Award and the rights and benefits under the Award. Partial employment or service, even if substantial, during any vesting period will not entitle the Participant to any proportionate vesting or avoid or mitigate a termination of rights and
benefits upon or following a termination of services as provided in Section 6 above. Nothing contained in the Plan or the Award constitutes a continued employment or service commitment by the Company, confers upon the Participant any right to
remain in the employ of or service to the Company, interferes with the right of the Company at any time to terminate such employment or services, or affects the right of the Company to increase or decrease the Participant’s other compensation.
By accepting this Award, the Participant acknowledges and agrees that (a) any person who is terminated before full vesting of an award, such as the one granted to the Participant by this Award Certificate, could attempt to argue that he or she
was terminated to preclude vesting; (b) the Participant promises never to make such a claim; (c) except as otherwise expressly provided herein, in any event, the Participant has no right to pro-rated vesting with respect to the Award if
his or her services terminates before any applicable vesting date with respect to the Award (regardless of the portion of the vesting period the Participant was actually in the service of the Company and/or any of its subsidiaries). 
 11. Tax Consequences. 
 (a) Tax
Consultation. The Participant understands that he or she may suffer adverse tax consequences as a result of his or her acceptance of the Award. The Participant represents that he or she has consulted with any tax consultants he or she deems
advisable in connection with the acceptance of the Award and that he or she is not relying on the Company for any tax advice. By accepting this Award, the Participant acknowledges that he or she shall be solely responsible for the satisfaction of
any taxes that may arise (including taxes arising under Section 409A of the Code), and that the Company shall not have any obligation whatsoever to pay such taxes. 
 (b) Withholding. Upon or in connection with any payment in respect of the Award, the Company shall first deduct from any cash portion of such payment the full amount of any taxes which the Company may be
required to withhold with respect to such payment, and to the extent the aggregate cash portion of such payment is in sufficient to satisfy the Company’s applicable withholding obligations, the Company shall then automatically reduce the number
of 

  

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any shares of Common Stock to be delivered in payment by (or otherwise reacquire) the appropriate number of whole shares, valued at their then fair market
value (as determined under the Plan), to satisfy any remaining withholding obligations of the Company with respect to such payment, at the minimum applicable withholding rates. In the event that the Company cannot legally satisfy such withholding
obligations by reduction of shares, or in the event that the withholding procedure described in the preceding sentence is insufficient to satisfy the Company’s applicable withholding obligations with respect to any payment under the Award, the
Company shall be entitled to require a cash payment by or on behalf of the Participant and/or to deduct from other compensation payable to the Participant any sums required by federal, state or local law to be withheld with respect to such payment.
The Participant agrees to take any further actions and execute any additional documents as may be necessary to effectuate the provisions of this Section 11. 
 12. Adjustments Upon Specified Events. Upon the occurrence of certain events relating to the Company’s stock contemplated by Section 3(d) of the Plan, the Plan Administrator shall make adjustments in
accordance with such section in the number of Performance Units then outstanding and the number and kind of securities that may be issued in respect of the Award. Furthermore, the Administrator shall adjust the performance measures and performance
goals referenced in Exhibit A hereof to the extent (if any) it determines that the adjustment is necessary or advisable to preserve the intended incentives and benefits to reflect (1) any material change in corporate capitalization, any
material corporate transaction (such as a reorganization, combination, separation, merger, acquisition, or any combination of the foregoing), or any complete or partial liquidation of the Company, (2) any change in accounting policies or
practices, (3) the effects of any special charges to the Company’s earnings or (4) any other similar special circumstances. 
 13. Severability. In the event that any provision or portion of this Award Certificate shall be determined to be invalid or unenforceable for any reason, in whole or in part, in any jurisdiction, the remaining provisions of this
Award Certificate shall be unaffected thereby and shall remain in full force and effect to the fullest extent permitted by law in such jurisdiction, and such invalidity or unenforceability shall have no effect in any other jurisdiction. 

14. Binding Effect. This Award Certificate shall extend to, be binding upon and inure to the benefit of the Participant and the
Participant’s legal representatives, heirs, successors and assigns (subject, however, to the limitations set forth in Section 9 with respect to the transfer of this Award Certificate or any rights hereunder or of the Performance Units),
and upon the Company and its successors and assigns, regardless of any change in the business structure of the Company, be it through spinoff, merger, sale of stock, sale of assets or any other transaction. 
 15. Notices. Any notice to the Company contemplated by this Award Certificate shall be addressed to it in case of its President; and any notice to
the Participant shall be addressed to him or her at the address on file with the Company on the date hereof or at such other address as he or she may hereafter designate in writing. 
 16. Entire Agreement. This Award Certificate, together with the Plan, constitutes the entire understanding between the Company and the Participant
with regard to the subject matter of this Award Certificate. They supersede any other agreements, representations or understandings (whether oral or written and whether express or implied) which relate to the subject matter of this Award
Certificate. 
  

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 17. Waiver. The waiver of any breach of any duty, term or condition of this Award Certificate
shall not be deemed to constitute a waiver of any preceding or succeeding breach of the same or of any other duty, term or condition of this Award Certificate. 
 18. Interpretation. The interpretation, construction, performance and enforcement of the terms and conditions of this Award Certificate and the Plan shall lie within the sole discretion of the Plan
Administrator, and the Plan Administrator’s determinations shall be conclusive and binding on all interested persons. 
 19. Choice
of Law; Arbitration. This Award Certificate shall be governed by, and construed in accordance with, the laws of the State of California (disregarding any choice-of-law provisions). Any dispute or disagreement regarding the Participant’s
rights under this Award Certificate shall be settled solely by binding arbitration in accordance with applicable rules of the American Arbitration Association. 
 20. Construction. It is intended that the terms of the Award will not result in the imposition of any tax liability pursuant to Section 409A of the Code. This Award Certificate shall be construed and
interpreted consistent with that intent. 
  

			
	 SEMTECH CORPORATION,
 a Delaware
corporation

		
	By:	 	  

		 	[an authorized officer]
		 	
		 	June 2007


  

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 EXHIBIT A 
 PERFORMANCE GOALS 
 [Date of Award] 
 Subject to Sections 6 and 7, the Award shall vest and become nonforfeitable with respect to the percentage of the total number of Performance Units
subject to the Award (subject to adjustment under Section 3(d) of the Plan) set forth in the chart below based on [items to be measured] for the Performance Period. 
 If [any of the items to be measured] is between two of the performance levels indicated below, the percentage of the Performance Units that will vest will be determined based on lineal interpolation between the two
performance levels. Any Performance Units that do not vest based on the performance requirements set forth in this Exhibit A will automatically terminate as of the last day of the Performance Period. 
 [INSERT CHART] 
  

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