Document:

exv10w32

 

EXHIBIT 10.32

FOURTH AMENDMENT TO LEASE

     This
Fourth Amendment to Lease (this “Amendment”), dated as of May 10, 2006 (the
“Amendment Date”), by and between iSTAR SUNNYVALE PARTNERS, L.P., a Delaware limited partnership
(“Landlord”), and SILICON IMAGE, INC., a Delaware
corporation (“Tenant”), amends and forms a part
of the Lease, dated December 12, 2002, by and between Landlord and Tenant, as amended by the First
Amendment to Lease dated July 23, 2003, by the Second Amendment to Lease dated February 17, 2004
and by the Third Amendment to Lease dated June 1, 2004
(collectively, the “Lease”).

RECITALS

     A. Capitalized terms used herein and not defined herein have the meanings specified in the
Lease.

     B. Tenant currently leases the entirety of the interior space within the 1060 East Arques
building and the entirety of the interior space within the 1070/1080 East Arques building.

     C. Landlord and Tenant desire to amend the Lease to expand the Leased Premises to include the
entirety of the interior space within the 1090 East Arques building
(the “1090 Expansion Premises”), subject to the terms and conditions set forth herein. The 1090 Expansion Premises are
depicted in Schedule 1 attached hereto and consist of approximately 33,766 square feet.

AGREEMENTS

     Now, therefore, for good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged, Landlord and Tenant hereby agree as follows:

     1. Expansion of Leased Premises.

     (a) Landlord and Tenant presently anticipate that possession of the 1090 Expansion
Premises will be tendered to Tenant on September 1, 2006 (the
“Estimated Delivery Date”). If
Landlord is unable to tender possession of the 1090 Expansion Premises to Tenant by the Estimated
Delivery Date, then (i) the validity of the Lease and/or this Amendment shall not be affected or
impaired thereby, (ii) Landlord shall not be in default under the Lease and/or this Amendment or be
liable for damages therefor, and (iii) Tenant shall accept possession of the 1090 Expansion
Premises on the date Landlord tenders possession thereof to Tenant,
which date shall be the “1090
Expansion Premises Commencement Date”. By occupying the 1090 Expansion Premises, Tenant shall be
deemed to have accepted the 1090 Expansion Premises “as is”, “where is” and with all faults, on and
subject to the terms and conditions set forth in Paragraph 2.5 of the Lease, subject only to the
following:

     (i) Landlord shall, at Landlord’s sole expense without possibility of
reimbursement from Tenant, repair or replace any components of the Building’s Systems (as
defined below) which (1) are not in good working condition for reasons other than
the acts or omissions of Tenant or any of its employees, contractors, invitees, agents or
other representatives (including any alterations of the applicable Building’s Systems by or
on behalf of Tenant, whether in connection with the Tenant Improvements work or otherwise)
and (2) Tenant, acting reasonably and in good faith, specifically identifies and describes
as not being in good working condition in a written notice delivered to Landlord within
thirty (30) days after the 1090 Expansion Premises Commencement
Date (the “Warranty Period”), it being understood that, except for any components of the Building’s Systems so
identified and described by Tenant before expiration of the Warranty Period, the Building’s
Systems and the 1090 Expansion Premises shall be

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conclusively deemed to have been delivered in good working condition, subject only to
clause (ii) below. Without limiting the foregoing, so long as Landlord provides Tenant
with sufficient access to the 1090 Expansion Premises, Tenant shall use commercially
reasonable efforts to evaluate the Building’s Systems and to identify and describe any
problems with the Building’s Systems as soon as practicable following the Amendment Date,
in order that Landlord may enforce any applicable rights it may have against the existing
tenant in the 1090 Expansion Premises. As used herein, “Building’s Systems” means the
HVAC, life-safety, plumbing, electrical, and mechanical systems of the 1090 East Arques
building.

     (ii) Landlord shall, at Landlord’s sole expense without possibility of
reimbursement from Tenant, replace the existing roof membrane of the 1090 East Arques
building by July 31, 2007.

     (b) Effective as of the 1090 Expansion Premises Commencement Date, the definition of
the “Leased Premises” set forth in Article 1 of the Lease shall be deleted in its entirety and
replaced with the following:

“(1) All of the interior space within the 1060 East Arques building, including stairwells,
connecting walkways, and atriums, consisting of approximately 50,819 square feet and, for
purposes of this Lease, agreed to contain said number of square feet, (2) all of the
interior space within the 1070/1080 East Arques building, including stairwells, connecting
walkways, and atriums, consisting of approximately 58,984 square feet and, for purposes of
this Lease, agreed to contain said number of square feet, and (3) all of the interior
space within the 1090 East Arques building, including stairwells, connecting walkways, and
atriums, consisting of approximately 33,766 square feet and, for purposes of this Lease,
agreed to contain said number of square feet. Accordingly, the aggregate size of the
Leased Premises shall be 143,569 square feet and, for purposes of this Lease, agreed to
contain said number of square feet.”

     2. Lease Expiration Date. The Lease Expiration Date with respect to the
entire Leased Premises (including, without limitation, the 1090 Expansion Premises)
shall be July 31, 2011.

     3. Tenant’s Security Deposit. Upon execution of this Amendment, Tenant shall deposit
with Landlord the amount of sixty-four thousand one hundred fifty-five and 40/100 dollars
($64,155.40) in order to increase Tenant’s Security Deposit to two hundred seventy-one thousand
three hundred ninety-nine and 40/100 dollars ($271,399.40).

     4. Base Monthly Rent; Prepaid Rent for 1090 Expansion Premises.

     (a) Effective as of the 1090 Expansion Premises Commencement Date, the definition of
“Base Monthly Rent” set forth in Article 1 of the Lease shall be deleted in its entirety and
replaced with the following:

	 	 	 
	Month	 	Base
Monthly Rent
	(beginning on the 1090 Expansion Premises Commencement Date)	 	 
	1
	 	$114,160.27
	2-12
	 	$146,237.97

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	Month	 	Base Monthly Rent
	13-24
	 	$150,675.75
	
25-36	 	
$155,216.29
	
37-48

	 	
$159,862.65
	
49-Lease Expiration Date
	 	
$164,618.01

     (b) Tenant acknowledges that the 1090 Expansion Premises are currently leased to
Trident MicroSystems, Inc. (“Trident”) through August 31, 2006. Landlord shall give Tenant a
credit in an amount equal to fifty percent (50%) of base rent actually received from Trident for
the month of August, 2006 to be applied against the Base Monthly Rent payable by Tenant under the
Lease for the month of August, 2006. In addition, if Trident fails to vacate the 1090 Expansion
Premises by August 31, 2006, Landlord shall thereafter give Tenant a credit in an amount equal to
fifty percent (50%) of any holdover base rent actually received from Trident to be applied on a
monthly basis against the Base Monthly Rent payable by Tenant under the Lease for each applicable
month.

     (c) Notwithstanding anything to the contrary herein, upon execution of this Amendment, Tenant
shall pay to Landlord the amount of $40,519.20, which shall be applied to the Base Monthly Rent
and Additional Rent due for the second (2nd) full month after the 1090 Expansion
Premises Commencement Date; otherwise, full installments of Base Monthly Rent shall be payable on
the first day of each calendar month pursuant to the Lease.

     5. Tenant’s Project Proportionate Share. Effective as of the 1090 Expansion Premises
Commencement Date, the definition of the “Tenant’s Project Proportionate Share” set forth in
Article 1 of the Lease shall be deleted in its entirety and replaced with sixty-six and 63/100
percent (66.63%).

     6. Tenant’s Building Proportionate Share. Effective as of the 1090 Expansion Premises
Commencement Date, the definition of the “Tenant’s Building Proportionate Share” set forth in
Article 1 of the Lease shall be and remain one hundred percent (100%).

     7. Tenant Improvement Work; Allowance. Paragraph 2.7 of the Lease is hereby deleted
in its entirety and replaced with the following:

     “2.7 Tenant Improvement Work; Allowance; Additional Allowance.

     (a) Landlord shall provide Tenant with an improvement allowance of up to one
million one hundred eighty-six thousand eight hundred twenty-two and 00/100 dollars
($1,186,822.00) (the “Allowance”); provided, however, that seven hundred eighty-one
thousand six hundred thirty dollars ($781,630.00) of such Allowance has already been used
prior to the Amendment Date, leaving an available balance of up to four hundred five
thousand one hundred ninety-two and 00/100 dollars ($405,192.00). The Allowance shall be
used to reimburse Tenant only for direct, reasonable costs incurred by Tenant in
designing, constructing and installing improvements in the 1090 Expansion Premises (the
“1090 Tenant Improvements”); provided, however, that any unused portion of the Allowance,
not to exceed one hundred sixty-eight thousand eight hundred thirty and 00/100 dollars
($168,830.00), may be used to reimburse Tenant only for direct, reasonable costs incurred
by Tenant in designing, constructing and installing improvements in the remainder of the
Leased Premises, which improvements may include installing the underground conduit between
the 1070/1080 East Arques building and the 1090

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East
Arques building (the “Ancillary Tenant Improvements”) (the 1090 Tenant Improvements and
the Ancillary Tenant Improvements are collectively the “Tenant Improvements”); and provided
further, however, that the Allowance shall not be used to reimburse Tenant for any costs
incurred by Tenant in connection with signage, furniture, trade fixtures, equipment or
moving. The Tenant Improvements shall be designed, constructed and installed in accordance
with plans and specifications to be reasonably approved in advance by Landlord and in
accordance with all applicable laws, ordinances and regulations, and shall be constructed by
a general contractor that is licensed in the State of California and reasonably approved in
advance by Landlord. Tenant Improvements work may commence upon the completion and execution
of all required documentation and receipt of all required approvals and permits. Landlord
shall pay to Tenant the Allowance when Tenant provides to Landlord receipts for all Tenant
Improvements work and evidence that all such work has been paid for and completed free and
clear of all mechanics’ and materialman’s liens; provided that Landlord shall have no
obligation to pay any portion of the Allowance for any Tenant Improvements work that has not
been so completed by December 31, 2007.

     (b) If Tenant notifies Landlord in writing within two (2) months after the
Amendment Date that Tenant reasonably anticipates that the cost of the 1090 Tenant
Improvements will exceed the Allowance, then Tenant shall have the right (but not the
obligation) subsequently to receive from Landlord an additional allowance not to exceed one
hundred sixty-eight thousand eight hundred thirty and 00/100 dollars ($168,830.00) (the
“Additional Allowance”) to be used to reimburse Tenant only for direct, reasonable costs
incurred by Tenant in designing, constructing and installing the 1090 Tenant Improvements in
excess of the Allowance. The Additional Allowance shall be paid by Landlord in accordance
with, and subject to, the terms and conditions provided in Section 2.7(a) above for the
disbursement of the Allowance; provided, however, that the total amount of the Additional
Allowance paid by Landlord shall be amortized over the initial Lease Term at an interest
rate of eight percent (8%) per annum, and Tenant shall pay Landlord, as Additional Rent,
equal monthly installments sufficient to repay such total amortized amount by the expiration
of the initial Lease Term. Landlord shall have no obligation to pay any portion of the
Additional Allowance for any 1090 Tenant Improvement work that has not been completed by
December 31, 2007.”

     9. Early Access to 1090 Expansion Premises. Beginning on the date of this Amendment
and continuing through the 1090 Expansion Premises Commencement Date, Tenant and its employees,
agents, contractors, consultants, architects and designers shall have access to the 1090 Expansion
Premises for purposes of designing improvements to the 1090 Expansion Premises to be constructed in
the 1090 Expansion Premises by or for the benefit of Tenant after the 1090 Expansion Premises
Commencement Date, provided that (a) such access shall not unreasonably interfere with Trident’s
use or occupancy of the 1090 Expansion Premises , (b) in no event shall any construction by or for
the benefit of Tenant commence in the 1090 Expansion Premises, or any of Tenant’s personal property
or trade fixtures be moved into the 1090 Expansion Premises, prior to the 1090 Expansion Premises
Commencement Date, and (c) Tenant shall release, waive, discharge, indemnify, hold harmless, defend
and protect Landlord from and against any and all claims, losses, liabilities, and/or damages
(including reasonable attorneys’ fees and costs) of any nature arising out of or in any way related
to any acts or omissions of Tenant or any of its employees, agents, contractors, consultants,
architects and designers in or about the 1090 Expansion Premises prior to the 1090 Expansion
Premises Commencement Date.

     10. Brokerage
Commissions. Tenant represents, warrants and agrees that, except for Ted Eyre of
NAI BT Commercial and Alan Guterman of CPS (collectively, “Tenant’s Broker”), it has not had any
dealings with any real estate broker(s), leasing agent(s), fmder(s) or salesmen with respect to the
subject matter of this Amendment, and that, subject to the immediately following sentence, it will

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indemnify, defend with competent counsel, and hold Landlord harmless from any liability for the
payment of any real estate brokerage commissions, leasing commissions or finder’s fees claimed by
any real estate broker(s), leasing agent(s), finder(s), or salesmen to be earned or due and payable
by reason of Tenant’s agreement or promise (implied or otherwise) to pay (or to have Landlord pay)
such a commission or finder’s fee by reason of the subject matter of this Amendment. For the
transaction contemplated by this Amendment Landlord shall pay to Tenant’s Broker a procuring fee
equal to six percent (6%) of the Base Monthly Rent payable with respect to the 1090 Expansion
Premises through the Lease Expiration Date, payable one-half (1/2) upon execution of this Amendment
and one-half (1/2) upon the 1090 Expansion Premises Commencement Date. Except as expressly provided
in this Section 9 with respect to brokerage commissions payable with respect to this Amendment,
Paragraph 14.2 of the Lease shall continue to apply and remain in full force and effect.

     11. Conflicts; No Other Amendment. In the event of a conflict between the provisions
of this Amendment and the provisions of the Lease, the provisions of this Amendment shall control.
Except as set forth in this Amendment, the provisions of the Lease remain in full force and effect.

     12. Entire Agreement. The Lease, as modified by this Amendment, constitutes the entire
agreement between the parties hereto pertaining to the subject matter hereof and may be further
modified only by a writing signed by the parties hereto.

     13. Facsimile; Counterparts. This Amendment may be signed in multiple counterparts
which, when signed by all parties, shall constitute a binding agreement. Landlord and Tenant agree
that the delivery of an executed copy of this Amendment by facsimile shall be legal and binding and
shall have the same full force and effect as if an original executed copy of this Amendment had
been delivered.

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           In Witness Whereof, the parties have caused this Amendment to be duly executed as of the
Amendment Date.

	 	 	 	 	 
	 	 	iSTAR SUNNYVALE PARTNERS, L.P., a
	 

	 	Delaware
	 	 limited partnership, Landlord
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Erich Stiger
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Its:
	 	           Senior Vice President
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	SILICON IMAGE, INC., a
Delaware corporation, Tenant
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Robert Freeman
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Its:
	 	           CPO
	 

	 	 	 	 

 

 

Schedule 1 

1090 Expansion Premises

 

 

Sunnyvale Research Center

1090 East Arques Avenue

Sunnyvale, CA

FIRST FLOOR

 

 

Sunnyvale Research Center

1090 East Arques Avenue

Sunnyvale, CA

SECOND FLOORexv10w34

 

Exhibit 10.34

December 23, 2006

Mr. Edward Lopez

Dear Mr. Lopez;

Silicon Image, Inc. (the “Company”) is pleased to confirm our offer to you in the position
of Chief Legal Officer reporting to Steve Tirado starting January 8, 2007. The terms of our offer
and the benefits currently provided by the Company are as follows:

	1.	 	Your starting base salary will be $275,000 and will be subject to annual review. In
addition, you will be eligible to participate in the regular health insurance and other
employee benefit plans established by the Company for its employees from time to time.
	 
	2.	 	As an employee of the Company you will have access to certain Company confidential
information and you may, during the course of your employment, develop certain information or
inventions which will be the property of the Company. During the period that you render
services to the Company, you agree to not engage in any employment, business or activity that
is in any way competitive with the business or proposed business of the Company. You will
disclose to the Company in writing any other gainful employment, business or activity that you
are currently associated with or participate in that competes with the Company. To protect
the interest of the Company, you will need to sign the Company’s standard “Employee Inventions
and Confidentiality Agreement” as a condition of your employment. We wish to impress upon you
that we do not wish you to bring any confidential or proprietary material of any former
employer or to violate any other obligations you may have to your former employer. You
represent that your signing of this offer letter, agreement(s) concerning stock options
granted to you under the Plan (as defined below) and the Company’s Employee Invention
Assignment and Confidentiality Agreement and your commencement of employment with the Company
will not violate any agreement currently in place between yourself and current or past
employers.
	 
	3.	 	We will recommend that the Board approve a grant to you, contingent on you accepting your new
role as Chief Legal Officer, of stock options in the amount of 100,000 shares of the Company’s
Common Stock. The grant date for such grant of stock options shall be the first
15th day of the calendar month after you commence work at the Company, and the
exercise price for such grant shall be the closing price on such grant date. Provided you
continue to provide services to the Company, the stock options will become vested and
exercisable with respect to 25% of the total shares granted on the 12 month anniversary date
of the grant date, and thereafter on the 15th day of each succeeding month an
additional 2.083% of the total shares granted under the stock option will become vested and
exercisable. However, the grant of such stock options by the Company is subject to the
Board’s approval and this promise to recommend such approval is not a promise of compensation,
and is not intended to create any obligation on the part of the Company.

 

 

	 	 	Further details on the Company’s stock option plan and on any specific stock option grant to
you will be provided upon approval of such stock option grant by the Board.
	 
	4.	 	This offer of employment is made to you in confidence, and we ask that you not disclose its
terms to anyone outside your immediate family. If you do disclose any of its terms to such a
family member, please caution him or her that such information is confidential and must not be
disclosed to anyone.
	 
	5.	 	While we look forward to a long and profitable relationship, should you decide to accept our
offer, you will be an at-will employee of the Company, which means the employment relationship
can be terminated by either of us for any reason or no reason, at any time and without cause
or prior notice. Any statements or representations to the contrary (and, indeed, any
statements contradicting any provision in this letter) should be regarded by you as
ineffective. Further, your participation in any stock option or benefit program is not to be
regarded as assuring you of continuing employment for any particular period of time. The
at-will nature of your employment with the Company may only be changed in a written agreement
signed by the Company’s CEO.
	 
	6.	 	Please note that because of employer regulations adopted in the Immigration Reform and
Control Act of 1986, within three business days of starting your new position you will need to
present documentation confirming your identify and demonstrating that you have authorization
to work in the United States. If you have questions about this requirement, which applies to
U.S. citizens and non-U.S. citizens alike, you may contact our Human Resource department.
	 
	7.	 	Please also note that due to United States export control laws, the Company may need to make
inquiries into your citizenship if you will have probable or actual contact with certain
technology and/or source code. Should the Company determine that you will have probable or
actual contact with certain technology and/or source code, and should you be a citizen of an
embargoed country under United States export control laws, this may have a material effect on
the terms and conditions of your employment with the Company.
	 
	8.	 	You and the Company agree to submit to mandatory and exclusive binding arbitration any
controversy or claim arising out of, or relating to, this Agreement or any breach hereof,
provided, however, that the parties retain their right to, and shall not be prohibited,
limited or in any other way restricted from, seeking or obtaining injunctive relief from a
court having jurisdiction over the parties for any alleged violation of the Employee Invention
Assignment and Confidentiality Agreement. Such arbitration shall be conducted through JAMS in
the State of California, Santa Clara County, before a single arbitrator, in accordance with
the JAMS Employment Arbitration Rules and Procedures in effect at that time. The arbitrator
must decide all disputes in accordance with California law and shall have power to decide all
matters, including arbitrability. You will bear only those costs of arbitration you would
otherwise bear had you brought a covered claim in court. When the arbitrator has issued a
decision, judgment on that decision may be entered in any court having jurisdiction thereof.
We each understand and agree that we are waiving a trial by jury. However, this arbitration
provision shall not affect your right to file an administrative 

 

 

	 	 	claim before any government agency where, as a matter of law, the parties may not restrict the Employee’s ability to file
an administrative claim with said agency (by way of example, claims before the Equal Employment
Opportunity Commission and the National Labor Relations Board). Otherwise, the parties agree that arbitration shall be the exclusive remedy for administrative
claims.
	 
	9.	 	This offer will remain valid until Sunday, December 26, 2006. If you decide to accept our
offer please sign the enclosed copy of this letter in the space indicated and return it to the
Human Resource department. Your signature will acknowledge that you have read and understood
and agreed to the terms and conditions of this offer and the attached documents. Should you
have anything else that you wish to discuss, please do not hesitate to call.
	 
	 	 	We look forward to the opportunity to welcome you to Silicon Image, Inc.
	 
	 	 	Sincerely,

Silicon Image, Inc
 
	 	 	
/s/ Doug Haslam
	 	 	

Doug Haslam

Vice President Human Resources
	 
	 	 	My signature below indicates acceptance of the terms and conditions of this offer and
acknowledgement that I have read and understood the terms and conditions of this offer. I
further acknowledge that no other commitments or representations were made to me as part of my
employment offer except as specifically set forth herein.

	 	 	 	 	 
	/s/ Edward Lopez	 	12/23/06	 	1/08/07
	 
	 	 
	 	 
	Edward Lopez
	 	Date
	 	Start Date

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