Document:

exv10w6

Exhibit 10.6

ATMEL CORPORATION CHANGE OF CONTROL AND SEVERANCE PLAN

AND SUMMARY PLAN DESCRIPTION

     1. Introduction. The purpose of this Atmel Corporation Change of Control and Severance Plan
(the “Plan”) is to provide assurances of specified severance benefits to eligible employees of the
Company whose employment is subject to being involuntarily terminated due to death, Disability, or
other than for Cause or voluntarily terminated for Good Reason under the circumstances described in
the Plan, including but not limited to following a Change of Control of the Company. The Company
recognizes that the potential of a Change of Control can be a distraction to employees and can
cause such employees to consider alternative employment opportunities. The Plan is intended to (i)
assure that the Company will have continued dedication and objectivity of key employees,
notwithstanding the possibility, threat or occurrence of a Change of Control and (ii) provide such
employees with an incentive to continue their employment and to motivate them to maximize the value
of the Company prior to and following a Change of Control for the benefit of its stockholders.
This Plan is an “employee welfare benefit plan,” as defined in Section 3(1) of the Employee
Retirement Income Security Act of 1974, as amended. This document constitutes both the written
instrument under which the Plan is maintained and the required summary plan description for the
Plan.

     2. Important Terms. To help you understand how this Plan works, it is important to know the
following terms:

          2.1 “Administrator” means the Compensation Committee of the Board or another duly constituted
committee of members of the Board, or officers of the Company as delegated by the Board, or any
person to whom the Administrator has delegated any authority or responsibility pursuant to Section
12, but only to the extent of such delegation.

          2.2 “Base Pay” means a Covered Employee’s regular straight-time salary as in effect during the
last regularly scheduled payroll period immediately preceding the date on which an Involuntary
Termination occurs. Base Pay does not include payments for overtime, shift premium, incentive
compensation, incentive payments, bonuses, commissions or other compensation.

          2.3 “Board” means the Board of Directors of the Company.

          2.4 “Cause” means (i) the Covered Employee’s willful and continued failure to perform the
duties and responsibilities of his or her position after there has been delivered to the Covered
Employee a written demand for performance from the Company’s Chief Executive Officer which
describes the basis for the Chief Executive Officer’s belief that the Covered Employee has not
substantially performed his or her duties and the Covered Employee has not corrected such failure
within thirty (30) days of such written demand; (ii) any act of personal dishonesty taken by the
Covered Employee in connection with his or her responsibilities as an employee of the Company with
the intention or reasonable expectation that such action may result in the substantial personal
enrichment of the Covered Employee; (iii) the Covered Employee’s conviction of, or plea of nolo
contendere to, a felony that the Board reasonably believes has had or will have a material
detrimental effect on the Company’s reputation or business; (iv) a breach of any fiduciary duty
owed to the Company by the Covered Employee that has a material detrimental effect on the Company’s
reputation or business; (v) the Covered Employee being found liable in any Securities and Exchange
Commission or other civil or criminal securities law action or entering any cease and desist order
with respect to such action (regardless of whether or not the Covered Employee admits or denies
liability); (vi) the Covered Employee (A) obstructing or impeding; (B) endeavoring to obstruct,
impede or improperly influence, or (C) failing to materially cooperate with, any investigation
authorized by the Board or any governmental or self-regulatory entity (an “Investigation”);

1

 

however, the Covered
Employee’s failure to waive attorney-client privilege relating to communications with the Covered
Employee’s own attorney in connection with an Investigation will not constitute “Cause”; or (vii)
the Covered Employee’s disqualification or bar by any governmental or self-regulatory authority
from serving in the capacity contemplated by his or her position or the Covered Employee’s loss of
any governmental or self-regulatory license that is reasonably necessary for the Covered Employee
to perform his or her responsibilities to the Company, if (A) the disqualification, bar or loss
continues for more than thirty (30) days, and (B) during that period the Company uses its good
faith efforts to cause the disqualification or bar to be lifted or the license replaced, it being
understood that while any disqualification, bar or loss continues during the Covered Employee’s
employment, the Covered Employee will serve in the capacity contemplated by his or her position to
whatever extent legally permissible and, if the Covered Employee’s service in the capacity
contemplated by his or her position is not permissible, the Covered Employee will be placed on
leave (which will be paid to the extent legally permissible).

          2.5 “Change of Control” means the occurrence of any of the following events: (i) the
consummation by the Company of a merger or consolidation of the Company with any other corporation,
other than a merger or consolidation which would result in the voting securities of the Company
outstanding immediately prior thereto continuing to represent (either by remaining outstanding or
by being converted into voting securities of the surviving entity) more than fifty percent (50%) of
the total voting power represented by the voting securities of the Company or such surviving entity
outstanding immediately after such merger or consolidation; (ii) the consummation of the sale or
disposition by the Company of all or substantially all of the Company’s assets; (iii) any “person”
(as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as
amended) becoming the “beneficial owner” (as defined in Rule 13d-3 under said Act), directly or
indirectly, of securities of the Company representing more than fifty percent (50%) of the total
voting power represented by the Company’s then outstanding voting securities; or (iv) a change in
the composition of the Board occurring within a one-year period, as a result of which fewer than a
majority of the directors are Incumbent Directors. “Incumbent Directors” will mean directors who
either (A) are directors of the Company as of the date hereof, or (B) are either (x) elected by the
Board pursuant to Section 3.4 of the Bylaws of the Company, or (y) nominated by the Board for
election by the stockholders pursuant to Section 3.3 of the Bylaws of the Company, in either case
(x) or (y), with the affirmative votes of at least a majority of those directors whose election or
nomination was not in connection with any transactions described in subsections (i), (ii), or (iii)
or in connection with an actual or threatened proxy contest relating to the election of directors
of the Company.

          2.6 “Change of Control Determination Period” means the time period beginning three (3) months
before the Change of Control and ending eighteen (18) months following the Change of Control.

          2.7 “Change of Control Severance Benefits” means the compensation and other benefits the
Covered Employee will be provided pursuant to Section 4.

          2.8 “Company” means Atmel Corporation, a Delaware corporation.

          2.9 “Covered Employee” means an employee of the Company or any parent or subsidiary of the
Company who has been designated by the Administrator to participate in the Plan as shown on
Appendix A and/or Appendix B, attached hereto, and has executed and delivered a
Participation Agreement to the Company. For this purpose, each U.S. employee of the Company who
becomes a Section 16 Officer on or after the Effective Date shall be deemed to have been designated
by the Administrator to participate in the Plan under Tier 1 of Appendix A and Appendix
B as of the date he or she becomes a Section 16 Officer and shall be a Covered Employee upon
executing and delivering a Participation Agreement to the Company.

          2.10 “Disability” means total and permanent disability as defined in Section 22(e)(3) of the
Internal Revenue Code of 1986, as amended (the “Code”).

2

 

          2.10 “Effective Date” means August 5, 2008.

          2.11 “Equity Compensation Awards” means, with respect to a Covered Employee, the Covered
Employee’s unvested equity compensation awards outstanding on the later of the date of his or her
Involuntary Termination or the Change of Control, other than performance-based restricted stock
unit awards or other equity compensation awards that vest based on achievement of performance
goals. For the sake of clarity, nothing herein will be deemed to extend the maximum term of a
Covered Employee’s stock options as set forth in the applicable stock option agreements by and
between the Covered Employee and the Company.

          2.12 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended.

          2.13 “Good Reason” means the Covered Employee’s termination of employment within ninety (90)
days following the end of the Cure Period (as defined below) as a result of the occurrence of any
of the following without his or her written consent: (i) a material diminution of the Covered
Employee’s authority, duties, or responsibilities, relative to the Covered Employee’s authority,
duties, or responsibilities in effect immediately prior to such reduction; provided, however, that
solely with respect to the Tier 2 Covered Employees whose names are indicated with an asterisk
(“*”) on Appendix A attached hereto, a reduction of authority, duties, or responsibilities
that occurs solely as a necessary and direct consequence of the Company undergoing a Change of
Control and being made part of a larger entity will not be considered material, (ii) a material
diminution by the Company in the Base Pay of the Covered Employee as in effect immediately prior to
such reduction; provided, however, that following a Change of Control, a comparable reduction of
the Base Pay of substantially all other executives of the consolidated entity that includes the
Company will not constitute “Good Reason”, (iii) the relocation of the Covered Employee to a
facility or a location more than fifty (50) miles from his or her then present location, or (iv)
the failure of the Company to obtain the assumption of the Plan by any successor in accordance with
Section 21 below; provided, however, that the Covered Employee must provide written notice to the
Board of the condition that could constitute a “Good Reason” event within ninety (90) days of the
initial existence of such condition and such condition must not have been remedied by the Company
within thirty (30) days (the “Cure Period”) of such written notice.

          2.14 “Involuntary Termination” means a termination of employment of a Covered Employee under
the circumstances described in Sections 4.1 and 5.1.

          2.15 “Participation Agreement” means the individual agreement (a form of which is shown in
Appendix C) provided by the Administrator to an employee of the Company designating such
employee as a Covered Employee under the Plan, which has been signed and accepted by the employee.

          2.16 “Plan” means the Atmel Corporation Change of Control Severance and Plan, as set forth in
this document, and as hereafter amended from time to time.

          2.17 “Section 16 Officer” means a U.S. employee of the Company who has been designated by the
Board, at its discretion and consistent with applicable law, as being subject to the reporting
requirements of Section 16 of the Securities Exchange Act of 1934, as amended.

          2.18 “Section 409A Limit” means the lesser of two (2) times: (i) the Covered Employee’s
annualized compensation based upon the annual rate of pay paid to the Covered Employee during his
or her taxable year preceding the Covered Employee’s taxable year in which the Covered Employee’s
separation from service occurs as determined under Treasury Regulation Section
1.409A-1(b)(9)(iii)(A)(1) and any Internal Revenue Service guidance issued with respect thereto; or
(ii) the maximum amount that may be taken into

3

 

account under a qualified plan pursuant to Section
401(a)(17) of the Code for the year in which the Covered Employee’s employment is terminated.

          2.19 “Severance Benefits” means the compensation and other benefits the Covered Employee will
be provided pursuant to Section 5.

          2.20 “Target Bonus” means, with respect to a Covered Employee, the Covered Employee’s target
bonus pursuant to the Company’s applicable corporate bonus plan (i) at the rate in effect for the
fiscal year in which the Covered Employee’s Involuntary Termination occurs and (ii) assuming one
hundred percent (100%) achievement of the Covered Employee’s and the Company’s performance
objectives, if any. Notwithstanding the foregoing, the Covered Employee’s Target Bonus for
purposes of the Plan shall be deemed to be the amount received as a bonus by the Covered Employee
for the Company’s fiscal year preceding the date of the Covered Employee’s termination of
employment if a target bonus has not been established for the then current fiscal year.

          2.21 “Tier 1 Covered Employee” means (i) with respect to the Change of Control Severance
Benefits provided pursuant to Section 4, a Covered Employee who has been designated by the
Administrator under Tier 1 as shown on Appendix A attached hereto and (ii) with respect to
the Severance Benefits provided pursuant to Section 5, a Covered Employee who has been designated
by the Administrator under Tier 1 as shown on Appendix B attached hereto.

          2.22 “Tier 2 Covered Employee” means with respect to the Change of Control Severance Benefits
provided pursuant to Section 4, a Covered Employee who has been designated by the Administrator
under Tier 2 as shown on Appendix A attached hereto.

     3. Eligibility for Change of Control Severance Benefits and Severance Benefits. An individual
is eligible for the Change of Control Severance Benefits or the Severance Benefits under the Plan,
in the amount set forth in Section 4 or Section 5, respectively, only if he or she is a Covered
Employee on the date he or she experiences an Involuntary Termination.

     4. Change of Control Severance Benefits.

          4.1 Involuntary Termination in Connection with a Change of Control. If, at any time within
the Change of Control Determination Period, (i) a Covered Employee terminates his or her employment
with the Company (or any parent or subsidiary of the Company) for Good Reason, or (ii) the Company
(or any parent or subsidiary of the Company) terminates such Covered Employee’s employment due to
death, Disability, or other than for Cause, then, subject to the Covered Employee’s compliance with
Section 7, the Covered Employee shall receive the following Change of Control Severance Benefits
from the Company:

               4.1.1 Cash Severance Benefits.

                    4.1.1.1 Tier 1 Covered Employee. If the Covered Employee is a Tier 1 Covered Employee, he or
she shall be entitled to (i) a lump sum payment in cash equal to one (1) times the Covered
Employee’s Base Pay, (ii) a lump sum payment in cash equal to the Covered Employee’s Target Bonus,
and (iii) a lump sum payment in cash equal to the Covered Employee’s Target Bonus, prorated to the
date of the Covered Employee’s Involuntary Termination. The prorated amount of the Covered
Employee’s Target Bonus that is payable in accordance with clause (iii) of the preceding sentence
will be calculated by multiplying the Covered Employee’s Target Bonus by a fraction with the
numerator equal to the number of days during the year in which his or her Involuntary Termination
occurs that the Covered Employee was employed by the Company, and the denominator equal to 365;

4

 

                    4.1.1.2 Tier 2 Covered Employee. If the Covered Employee is a Tier 2 Covered Employee, he or
she shall be entitled to (i) a lump sum payment in cash equal to 0.75 times the Covered Employee’s
Base Pay and (ii) a lump sum payment in cash equal to the Covered Employee’s Target Bonus,
prorated to the date of the Covered Employee’s termination. The prorated amount of the
Covered Employee’s Target Bonus that is payable in accordance with the preceding sentence will be
calculated by multiplying the Covered Employee’s Target Bonus by a fraction with the numerator
equal to the number of days during the year in which his or her Involuntary Termination occurs that
the Covered Employee was employed by the Company, and the denominator equal to 365.

               4.1.2 Continued Medical Benefits. If the Covered Employee, and any spouse and/or dependents
of the Covered Employee (“Family Members”), has coverage on the date of the Covered Employee’s
Involuntary Termination under a group health plan sponsored by the Company, the Company will pay
the total applicable premium cost for continued group health plan coverage under the Consolidated
Omnibus Budget Reconciliation Act of 1986, 29 U.S.C. Sections 1161-1168; 26 U.S.C. Section
4980B(f), as amended, and all applicable regulations (referred to collectively as “COBRA”),
provided that the Covered Employee is eligible for and validly elects to continue coverage under
COBRA for the Covered Employee and his Family Members, as follows:

                    4.1.2.1 Tier 1 Covered Employee. For a period of up to twelve (12) months.

                    4.1.2.2 Tier 2 Covered Employee. For a period of up to nine (9) months.

               4.1.3 Equity Award Accelerated Vesting. Except as otherwise provided in an appendix
attached hereto with respect to Covered Employees employed in one or more jurisdictions outside the
United States, one hundred percent (100%) of each Tier 1 Covered Employee’s and each Tier 2 Covered
Employee’s Equity Compensation Awards automatically shall accelerate and all restrictions or
repurchase rights applicable thereto shall immediately lapse so as to become fully vested and
exercisable. The period over which such Equity Compensation Awards may be exercised shall be
governed by the applicable provisions of the Company’s stock plans and related award agreements.

               4.1.4 Outplacement Assistance. The Covered Employee shall be entitled to transitional
outplacement benefits in accordance with the policies and guidelines of the Company as in effect
immediately prior to the Change of Control.

     5. Severance Benefits.

          5.1 Involuntary Termination Other Than During the Change of Control Determination Period. If,
at any time before or after the Change of Control Determination Period, the Company (or any parent
or subsidiary of the Company) terminates a Tier 1 Covered Employee’s employment due to death,
Disability, or other than for Cause, then, subject to the Covered Employee’s compliance with
Section 7, the Tier 1 Covered Employee shall be entitled to (i) a lump sum payment in cash equal to
one (1) times the Covered Employee’s Base Pay, (ii) a lump sum payment in cash equal to the Covered
Employee’s Target Bonus, prorated to the date of the Covered Employee’s Involuntary Termination and
(iii) if the Tier 1 Covered Employee and his Family Members have coverage on the date of the Tier 1
Covered Employee’s Involuntary Termination under a group health plan sponsored by the Company, the
Company will pay the total applicable premium cost for continued group health plan coverage under
COBRA, provided that the Tier 1 Covered Employee is eligible for and validly elects to continue
coverage under COBRA for the Tier 1 Covered Employee and his Family Members, for a period of up to
twelve (12 ) months. The prorated amount of the Covered Employee’s Target Bonus that is payable in
accordance with the preceding sentence will be calculated by multiplying the Covered Employee’s
Target Bonus by a fraction with the numerator equal to the number of days during the year in which
his or her Involuntary Termination occurs that the Covered Employee was employed by the Company,
and the denominator equal to 365.

     6. Parachute Payments. In the event that the severance and other benefits provided for in
this Plan or otherwise payable or provided to the Covered Employee (i) constitute “parachute
payments” within the

5

 

meaning of Section 280G of the Code and (ii) but for this Section 6, would be
subject to the excise tax imposed
by Section 4999 of the Code (the “Excise Tax”), then the Employee’s severance benefits
hereunder shall be either

               (a) delivered in full, or

               (b) delivered as to such lesser extent which would result in no portion of such severance
benefits being subject to the Excise Tax,

whichever of the foregoing amounts, taking into account the applicable federal, state and local
income taxes and the Excise Tax, results in the receipt by the Covered Employee on an after-tax
basis, of the greatest amount of severance benefits, notwithstanding that all or some portion of
such severance benefits may be taxable under Section 4999 of the Code. Unless the Company and the
Covered Employee otherwise agree in writing, any determination required under this Section 6 shall
be made in writing in good faith by the Company’s independent tax accountants immediately prior to
the Change of Control (the “Accountants”). In the event of a reduction in accordance with
subsection (b) above, the reduction will occur, with respect to such severance and other benefits
considered “parachute payments” within the meaning of Section 280G of the Code, in accordance with
the following:

               (x) Assignment of Values. Each payment will be assigned an “Economic Value” and a “280G
Value.” The 280G Value will equal the value of the payment for purposes of Section 280G of the
Code as determined by the Accountants in accordance with Section 280G of the Code and applicable
Treasury Regulations. The Economic Value will be determined as follows:

                    (1) Cash payments. The Economic Value of cash payments will equal the 280G Value of each such
payment.

                    (2) Equity awards.

                         A. Options and Stock Appreciation Rights. The Economic Value of a Share (as defined below)
subject to a stock option or stock appreciation right will be the difference equal to (i) the fair
market value of such Share as of the date the 280G Value of the Share is determined for purposes of
this Section, minus (ii) the per share exercise price of the award.

                         B. Restricted Stock and Restricted Stock Units. The Economic Value of a Share subject to a
restricted stock or restricted stock unit award will be the difference equal to (i) the fair market
value of such Share as of the date the 280G Value of the Share is determined for purposes of this
Section, less (ii) the per share purchase price of the award, if any.

                         C. For purposes of this Section 6, each share of common stock subject to each stock option,
stock appreciation right, restricted stock award and restricted stock unit award, the payment or
vesting acceleration of which constitutes a parachute payment within the meaning of Section 280G of
the Code (a “Share”), will be a separate “payment.” As a result, an Economic Value, 280G Value,
and 280G Ratio (as defined below) will be determined for each Share. For purposes of illustration
only, assume that the Covered Employee is granted an option on January 1, 2008, covering 500 Shares
at a per share exercise price of $5. The option is scheduled to vest in equal annual installments
of 250 Shares on January 1, 2010 and January 1, 2011. However, if a change of control occurs and
the Covered Employee is terminated without cause, the Covered Employee is entitled to 100% vesting
acceleration. On March 1, 2009, a change of control occurs with a deal price of $10 and the
Covered Employee is terminated without cause. The Accountants determine that the Covered Employee’s
severance benefits should be reduced in accordance with this Section 6 and that the amount of the
280G Value to be reduced is $100. The Accountants determine that the Economic Value, 280G Value,
and 280G Ratio for each of the 500 Shares subject to the option are as follows:

                              (i) The Economic Value for each Share is $5 (i.e., $10 deal price less the $5 per share
exercise price).

6

 

                              (ii) The 280G Value of each Share that would have vested on January 1, 2010 (the “2010
Shares”), is $1, as determined by the Accountants based on appropriate assumptions
used in calculating the 280G Value in accordance with Section 280G of the Code and applicable
Treasury Regulations.

                              (iii) The 280G Value of each Share that would have vested on January 1, 2011 (the “2011
Shares”), is $2, as determined by the Accountants based on appropriate assumptions used in
calculating the 280G Value in accordance with Section 280G of the Code and applicable Treasury
Regulations.

                              (iv) The 280G Ratio of each 2010 Share is 5:1 (i.e., $5 Economic Value divided by the $1 280G
Value).

                              (v) The 280G Ratio of each 2011 Share is 5:2 (.i.e., the $5 Economic Value divided by the $2
280G Value).

                              The 280G Ratio of a 2011 Share is lower than the 280G Ratio of a 2010 Share. Consequently,
the Accountants will reduce the 2011 Shares first. As each 2011 Share has a 280G Value of $2, the
Accountants must reduce the 2011 Shares by 50 Shares (i.e., reducing the 2011 Shares by 50 Shares
will reduce the Covered Employee’s aggregate 280G Value by $100 (50 Shares multiplied by $2).
After taking the reduction into account, the Covered Employee vests in a total of 450 Shares (i.e.,
250 Shares that would have vested on January 1, 2010 and 200 Shares that would have vested on
January 1, 2011).

                    (3) Other Benefits and Payments. The Economic Value of each payment attributable to
Company-paid continued coverage under a group health plan sponsored by the Company and outplacement
assistance, if any, will equal the 280G Value of each payment, such that the 280G Ratio for each
such payment will be equal to one (1).

               (y) Ranking of Payments. After the 280G Value and Economic Value of each payment are
determined, the Accountants will rank the payments in order of increasing 280G Ratio as follows:
the payment with the lowest 280G Ratio will be ranked first and all other payments will be ranked
in ascending order with respect to their 280G Ratios with the payment with the highest 280G Ratio
ranked last. For this purpose, the “280G Ratio” will mean, with respect to each payment, the ratio
determined by dividing: (1) the Economic Value of the payment by (2) the 280G Value of the payment.
For purposes of clarity, the Accountants will determine a separate 280G Ratio for each Share.

               (z) Reduction of Parachute Payments. The portion of each payment that is a parachute payment
under Section 280G of the Code will be reduced in the order in which the payments have been ranked
in accordance with subsection (y) above. For purposes of clarity, a Share or the acceleration of a
Share, as applicable, may be reduced in whole Shares only and may not be reduced by a fraction of
such Share. In the event that two or more payments have the same 280G Ratio, the portion of each
payment that is a parachute payment will be reduced in accordance with the following rules:

                    (1) Cash Payments.

                         A. With respect to two or more cash payments that have the same 280G Ratio, such payments will
be reduced on a pro-rata basis.

                         B. Any cash payments that have the same 280G Ratio as payments that are not cash payments will
be reduced prior to reducing the payments that are not cash payments.

                    (2) Equity Awards.

                         A. With respect to two or more Shares, if the Shares have the same 280G Ratio, the order of
reduction of such Shares will be based on the 280G Value of the Shares. Shares with a higher 280G
Value will be subject to earlier reduction, such that a Share with the highest 280G Value will be
reduced first and a Share with the lowest 280G Value will be reduced last.

7

 

                         B. In the event that two or more Shares (i) have the same 280G Ratio
and (ii) have the same 280G Value, the Shares will be subject to reduction based on the dates
of grant of the equity awards covering such Shares. Shares subject to equity awards granted
earlier will be subject to earlier reduction, such that a Share subject to an equity award with the
earliest grant date will be reduced first and a Share subject to an equity award with the most
recent grant date will be reduced last. Notwithstanding the foregoing, if any one or more Shares
subject to one or more nonstatutory stock options have the same 280G Ratio as any one or more
Shares subject to one or more incentive stock options, Shares subject to incentive stock options
will be subject to reduction only after Shares subject to nonstatutory stock options with the same
280G Ratio have been reduced in full.

                         C. Any Shares that have the same 280G Ratio as payments attributable to Company-paid continued
coverage under a group health plan sponsored by the Company or outplacement assistance, if any,
will be reduced prior to any such other payments having the same 280G Ratio that are neither cash
nor Shares, provided that cash payments and Shares with the same 280G Ratio have been reduced in
full.

                    (3) Other Benefits and Payments. With respect to two or more payments that: (A) have the same
280G Ratio and (B) are payments attributable to Company-paid continued coverage under a group
health plan sponsored by the Company or outplacement assistance, if any, such payments will be
subject to pro rata reduction, provided that cash payments and Shares with the same 280G Ratio have
been reduced in full.

          For purposes of making the calculations required by this Section 6, the Accountants may make
reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable,
good faith interpretations concerning the application of Sections 280G and 4999 of the Code. The
Company and the Covered Employee shall furnish to the Accountants such information and documents as
the Accountants may reasonably request in order to make a determination under this Section. The
Company shall bear all costs the Accountants may reasonably incur in connection with any
calculations contemplated by this Section 6.

     7. Conditions to Receipt of Severance.

          7.1 Release Agreement. As a condition to receiving Change of Control Severance Benefits or
Severance Benefits under this Plan, each Covered Employee will be required to sign a waiver and
release of all claims arising out of his or her Involuntary Termination and employment with the
Company and its subsidiaries and affiliates (the “Release”). The form of release that the Covered
Employee will be required to sign will be determined as follows: (i) if a Tier 1 Covered Employee
experiences an Involuntary Termination at any time before or after the Change of Control
Determination Period and is entitled to Severance Benefits under Section 5.1, the Covered Employee
will be required to sign the form of release attached hereto as Appendix D-1 (if the
Covered Employee is a U.S. employee of the Company) or, in a form substantially similar to
Appendix D-1, modified as necessary to be effective under and compliant with the applicable
law of the jurisdiction in which the Covered Employee resides or is employed with the Company (if
the Covered Employee is a non-U.S. employee of the Company); (ii) if a Change of Control is
triggered by an occurrence described in Sections 2.5(i) or (ii) or Section 2.5(iii) (provided that
the occurrence described in Section 2.5(iii) is approved by the Board), each Tier 1 Covered
Employee and Tier 2 Covered Employee who incurs an Involuntary Termination during the Change of
Control Determination Period will be required to sign the form of release attached hereto as
Appendix D-1 or Appendix D-2 (if the Covered Employee is a U.S. employee of the
Company), respectively, or in a form substantially similar to Appendix D-1 or Appendix
D-2, modified as necessary to be effective under and compliant with the applicable law of the
jurisdiction in which the Covered Employee resides or is employed with the Company (if the Covered
Employee is a non-U.S. employee of the Company), respectively; or (iii) if a Change of Control is
triggered by an occurrence described in Section 2.5(iii) that is not approved by the Board or an
occurrence described in Section 2.5(iv), each Tier 1 Covered Employee or Tier 2 Covered Employee
that incurs an Involuntary Termination during the Change of Control Determination Period will be
required to sign the form of release attached hereto as Appendix E or Appendix D-2
(if the Covered Employee is a U.S. employee of the Company), respectively, or in a form
substantially similar

8

 

to Appendix E or Appendix D-2, modified as necessary to be
effective under and compliant with the applicable law of the jurisdiction in which the Covered
Employee resides or is employed with the Company (if the Covered Employee is a non-U.S. employee of
the
Company), respectively. Notwithstanding the foregoing, no such modifications to the forms of
release attached hereto as Appendices D-1, D-2, and E with respect to a
Covered Employee who is a non-U.S. employee of the Company, may require any additional covenants or
obligations on the part of the Covered Employee. For purposes of the Plan, the term “Release”
shall refer to the form of release that the Covered Employee is required to execute in accordance
with the second sentence of this Section 7.1. The Release will include specific information
regarding the amount of time the Covered Employee will have to consider the terms of the Release
and return the signed agreement to the Company. In no event will the period to return the Release
be longer than sixty (60) days, inclusive of any revocation period set forth in the Release,
following the later of the Covered Employee’s Involuntary Termination or the Change of Control (the
“Release Period”).

          7.2 Non-solicitation. As a condition to receiving Change of Control Severance Benefits or
Severance Benefits under this Plan, each Covered Employee agrees that the Covered Employee will not
solicit any employee of the Company for employment other than at the Company, as follows:

               7.2.1 Tier 1 Covered Employee. During the Covered Employee’s employment with the Company and
for twelve (12) months following his or her termination.

               7.2.2 Tier 2 Covered Employee. During the Covered Employee’s employment with the Company and
for nine (9) months following his or her termination.

          Public solicitation, such as by taking out ads in a newspaper, advertising on the web and the
like, not specifically aimed at employees of the Company, will not constitute a breach of this
Section 7.2.

          7.3 Nondisparagement. During the Covered Employee’s employment with the Company and, for a
Tier 1 Covered Employee and Tier 2 Covered Employee, for twelve (12) months or nine (9) months
following his or termination, respectively, the Covered Employee and the Company will not knowingly
and materially disparage, libel, slander, or otherwise make any materially derogatory statements
regarding the other; provided that the Company’s obligations under this Section 7.3 shall apply
only to the Company’s executive officers and members of its Board of Directors (the “Board”) who
serve in such capacities during the course of the Covered Employee’s employment with the Company
and only for so long as each such officer or member of the Board is an employee or director of the
Company; provided further that the Company’s obligations under this Section 7.3 extend only to
those communications that are made by the above-referenced officers or directors in their
capacities as officers or directors of the Company. Notwithstanding the foregoing, nothing
contained in the Plan will be deemed to restrict the Covered Employee, the Company or any of the
Company’s current or former officers and/or directors from providing information to any
governmental or regulatory agency or body (or in any way limit the content of any such information)
to the extent they are requested or required to provide such information pursuant a subpoena or as
otherwise required by applicable law or regulation, or in accordance with any governmental
investigation or audit relating to the Company. Further, nothing contained in this Section 7.3
shall in any way limit the rights or relief that the Covered Employee or Company may have under
common law or otherwise with respect to the conduct prohibited in this paragraph.

          7.4 Other Requirements. A Covered Employee’s receipt of severance payments pursuant to Section
4.1 or 5.1 will be subject to the Covered Employee continuing to comply with the provisions of this
Section 7 and the terms of any confidential information agreement, proprietary information and
inventions agreement and such other appropriate agreement between the Covered Employee and the
Company. Benefits under this Plan shall terminate immediately for a Covered Employee if such
Covered Employee, at any time, violates any such agreement or the provisions of this Section 7.

     8. Timing of Benefits.

          8.1 Timing of Change of Control Severance Benefits. Subject to Section 10 below, the Change
of Control Severance Benefits that do not constitute Deferred Compensation Separation Benefits (as

9

 

defined in Section 10 below) shall commence or be paid, as applicable, as soon as administratively
practicable but within ten (10) calendar days following the later of the date of the Covered
Employee’s termination of
employment (or, if required by Section 10, the Covered Employee’s separation from service) or
the Change of Control or, if later, on the date the Release becomes effective. Subject to Section
10 below, the Change of Control Severance Benefits that do constitute Deferred Compensation
Separation Benefits will commence or be paid as applicable, as follows:

               8.1.1 If the Covered Employee’s Release Period ends on or before December 15 of the calendar
year in which the Covered Employee’s Involuntary Termination or, if later, the Change of Control
occurs, his or her Deferred Compensation Separation Benefits will commence or be made, as
applicable, on or before December 31 of that calendar year.

               8.1.2 If the Covered Employee’s Release Period ends after December 15 of the calendar year in
which the Covered Employee’s Involuntary Termination or, if later, the Change of Control occurs,
his or her Deferred Compensation Separation Benefits will commence or be paid, as applicable, on
the later of (a) the first payroll date in the calendar year next following the calendar year of
the Covered Employee’s Involuntary Termination or (b) the first payroll date following the date his
or her Release becomes effective, subject to Section 10 below.

          8.2 Timing of Severance Benefits. Subject to Section 10 below, the Severance Benefits that do
not constitute Deferred Compensation Separation Benefits (as defined in Section 10 below) shall
commence or be paid, as applicable, as soon as administratively practicable but within ten (10)
calendar days following the date of the Covered Employee’s termination of employment (or, if
required by Section 10, the Covered Employee’s separation from service) or, if later, on the date
the Release becomes effective. Subject to Section 10 below, the Severance Benefits that do
constitute Deferred Compensation Separation Benefits will commence or be paid as applicable, as
follows:

               8.2.1 If the Covered Employee’s Release Period ends on or before December 15 of the calendar
year in which the Covered Employee’s Involuntary Termination occurs, his or her Deferred
Compensation Separation Benefits will commence or be made, as applicable, on or before December 31
of that calendar year.

               8.2.2 If the Covered Employee’s Release Period ends after December 15 of the calendar year in
which the Covered Employee’s Involuntary Termination occurs, his or her Deferred Compensation
Separation Benefits will commence or be paid, as applicable, on the later of (a) the first payroll
date in the calendar year next following the calendar year of the Covered Employee’s Involuntary
Termination or (b) the first payroll date following the date his or her Release becomes effective,
subject to Section 10 below.

     9. Non-Duplication of Benefits. Notwithstanding any other provision in the Plan to the
contrary, the Change of Control Severance Benefits and Severance Benefits provided hereunder (or
alternatively and if applicable, provided under the Company’s VP Change of Control Severance Plan
(the “VP Plan”), if a Covered Employee is also a participant of the VP Plan)1 are
intended to be and are exclusive and in lieu of any other change of control and severance benefits
or payments to which the Covered Employee may otherwise be entitled, either at law, tort, or
contract, in equity, or under the Plan, in the event of any termination of the Covered Employee’s
employment. The Covered Employee will be entitled to no change of control or severance benefits or
payments upon a termination of employment that constitute an Involuntary Termination other than
those benefits expressly set forth herein and those benefits required to be provided by applicable
law or as negotiated in accordance with applicable law. Notwithstanding the foregoing, if the
Covered Employee is entitled to any benefits other than the benefits under the Plan by operation of
applicable law or as negotiated in accordance with applicable law, his or her benefits under the
Plan shall be reduced by the value of the benefits

 

			
	1	 	For the avoidance of doubt, if a Covered Employee also
is a “Covered Employee” under the VP Plan, then for so long as the VP Plan
remains in effect, the Covered Employee shall receive benefits under the VP
Plan rather than under this Plan).

10

 

the Covered Employee receives by operation of
applicable law or as negotiated in accordance with applicable law, as
determined by the Administrator in its discretion.

     10. Section 409A.

          10.1 Notwithstanding anything to the contrary in the Plan, no Deferred Compensation Separation
Benefits (as defined below) or other severance benefits that are exempt from Section 409A (as
defined below) pursuant to Treasury Regulation Section 1.409A-1(b)(9) will become payable until the
Covered Employee has a “separation from service” within the meaning of Section 409A of the Code and
the final regulations and any guidance promulgated thereunder (“Section 409A”). Further, if the
Covered Employee is subject to Section 409A and is a “specified employee” within the meaning of
Section 409A at the time of the Covered Employee’s separation from service (other than due to
death), then any Deferred Compensation Separation Benefits otherwise due to the Covered Employee on
or within the six (6) month period following his or her separation from service will accrue during
such six (6) month period and will become payable in a lump sum payment (less applicable
withholding taxes) on the date six (6) months and one (1) day following the date of the Covered
Employee’s separation from service. All subsequent payments of Deferred Compensation Separation
Benefits, if any, will be payable in accordance with the payment schedule applicable to each
payment or benefit. For purposes of clarity, the following severance benefits shall not constitute
Deferred Compensation Separation Benefits: (A) the vesting acceleration of outstanding awards of
stock options, stock appreciation rights or restricted stock described in Section 4.1.3 unless such
awards include deferral or other features that cause such awards to be subject to Section 409A; (B)
the Company-paid continued group health plan coverage described in Section 4.1.2; and (C) any other
payment or benefit that satisfies the conditions described in Section 10.2 below. Notwithstanding
anything herein to the contrary, if the Covered Employee dies following his or her separation from
service but prior to the six (6) month anniversary of his or her date of separation, then any
payments delayed in accordance with this paragraph will be payable in a lump sum (less applicable
withholding taxes) to the Covered Employee’s estate as soon as administratively practicable after
the date of his or her death and all other Deferred Compensation Separation Benefits will be
payable in accordance with the payment schedule applicable to each payment or benefit. For
purposes of the Plan, “Deferred Compensation Separation Benefits” will mean the severance payments
or benefits payable to the Covered Employee, if any, pursuant to the Plan that, when considered
together with any other severance payments or separation benefits, is considered deferred
compensation under Section 409A.

          10.2 Each payment and benefit payable under the Plan is intended to constitute a separate
payment for purposes of Section 1.409A-2(b)(2) of the Treasury Regulations. Any severance payment
that satisfies the requirements of the “short-term deferral” rule set forth in Section
1.409A-1(b)(4) of the Treasury Regulations shall not constitute a Deferred Compensation Separation
Benefit. Any severance payment that entitles the Covered Employee to taxable reimbursements or
taxable in-kind benefits covered by Section 1.409A-1(b)(9)(v) shall not constitute a Deferred
Compensation Separation Benefit. Any severance payment or portion thereof that qualifies as a
payment made as a result of an involuntary separation from service pursuant to Section
1.409A-1(b)(9)(iii) of the Treasury Regulations that does not exceed the Section 409A Limit shall
not constitute a Deferred Compensation Separation Benefit.

          10.3 It is the intent of this Plan to comply with the requirements of Section 409A so that
none of the severance payments and benefits to be provided hereunder will be subject to the
additional tax imposed under Section 409A, and any ambiguities herein will be interpreted to so
comply. Notwithstanding anything to the contrary in the Plan, including but not limited to Section
14, the Company reserves the right to amend the Plan as it deems necessary or advisable, in its
sole discretion and without the consent of the Covered Employees, to comply with Section 409A of
the Code or to otherwise avoid income recognition under Section 409A of the Code prior to the
actual payment of Change of Control Severance Benefits or Severance Benefits or imposition of any
additional tax (provided that no such amendment shall materially reduce the benefits provided
hereunder).

11

 

     11. Withholding. The Company will withhold from any Change of Control Severance Benefits or
Severance Benefits all federal, state, local and other taxes required to be withheld therefrom and
any other required payroll deductions.

     12. Administration. The Plan will be administered and interpreted by the Administrator (in
his or her sole discretion). The Administrator is the “named fiduciary” of the Plan for purposes
of ERISA and will be subject to the fiduciary standards of ERISA when acting in such capacity. Any
decision made or other action taken by the Administrator prior to a Change of Control with respect
to the Plan, and any interpretation by the Administrator prior to a Change of Control of any term
or condition of the Plan, or any related document, will be conclusive and binding on all persons
and be given the maximum possible deference allowed by law. Following a Change of Control, any
decision made or other action taken by the Administrator with respect to the Plan, and any
interpretation by the Administrator of any term or condition of the Plan, or any related document
that (i) does not affect the benefits payable under the Plan shall not be subject to review unless
found to be arbitrary and capricious or (ii) does affect the benefits payable under the Plan shall
not be subject to review unless found to be unreasonable or not to have been made in good faith.
In accordance with Section 2.1, the Administrator may, in its sole discretion and on such terms and
conditions as it may provide, delegate in writing to one or more officers of the Company all or any
portion of its authority or responsibility with respect to the Plan; provided, however, that any
Plan amendment or termination or any other action that could reasonably be expected to increase
significantly the cost of the Plan must be approved by the Board or the Compensation Committee of
the Board.

     13. Eligibility to Participate. To the extent that the Administrator has delegated
administrative authority or responsibility to one or more officers of the Company in accordance
with Sections 2.1 and 12, each such officer will not be excluded from participating in the Plan if
otherwise eligible, but he or she is not entitled to act or pass upon any matters pertaining
specifically to his or her own benefit or eligibility under the Plan. The Administrator will act
upon any matters pertaining specifically to the benefit or eligibility of each such officer under
the Plan.

     14. Amendment or Termination. The Company, by action of the Administrator, reserves the right
to amend or terminate the Plan at any time, without advance notice to any Covered Employee and
without regard to the effect of the amendment or termination on any Covered Employee or on any
other individual. Any amendment or termination of the Plan will be in writing. Notwithstanding
the preceding, (a) any amendment to the Plan that causes an individual or group of individuals to
cease to be a Covered Employee will not be effective unless it both is approved by the
Administrator and communicated to the affected individual in writing prior to the Change of Control
Determination Period and (b) once a Covered Employee has incurred an Involuntary Termination, no
amendment or termination of the Plan may, without that Covered Employee’s written consent, reduce
or alter to the detriment of the Covered Employee, the Severance Benefits payable to that Covered
Employee (including, without limitation, imposing additional conditions or modifying the timing of
payment). In addition, notwithstanding the preceding, once the Change of Control Determination
Period has begun, the Company may not, without a Covered Employee’s written consent, amend or
terminate the Plan in any way, nor take any other action, that (a) prevents that Covered Employee
from becoming eligible for Severance Benefits or Change of Control Severance Benefits under the
Plan or (b) reduces or alters to the detriment of the Covered Employee the Severance Benefits or
Change of Control Severance Benefits payable, or potentially payable, to a Covered Employee under
the Plan (including, without limitation, imposing additional conditions or modifying the timing of
payment). For the avoidance of doubt, “Change of Control Severance Benefits payable, or
potentially payable” shall include any Change of Control Severance Benefits payable pursuant to an
appendix attached hereto with respect to Covered Employees employed in one or more jurisdictions
outside the United States as contemplated in Section 4. Any action of the Company in amending or
terminating the Plan will be taken in a non-fiduciary capacity. Notwithstanding anything in the
Plan to the contrary, the Plan shall have an initial term of five (5) years commencing on the
Effective Date and shall automatically terminate on the fifth (5th) anniversary of the Effective
Date unless otherwise extended by the

12

 

Compensation Committee of the Board, in its discretion. On
or about the fourth (4th) anniversary of the Effective Date, the Compensation Committee of the
Board will review the Plan in good faith and determine whether to extend the initial term of the
Plan.

     15. Claims Procedure. Any employee or other person who believes he or she is entitled to any
payment under the Plan may submit a claim in writing to the Administrator within ninety (90) days
of the earlier of (i) the date the claimant learned the amount of their Change of Control Severance
Benefits or Severance Benefits under the Plan or (ii) the date the claimant learned that he or she
will not be entitled to any benefits under the Plan. If the claim is denied (in full or in part),
the claimant will be provided a written notice explaining the specific reasons for the denial and
referring to the provisions of the Plan on which the denial is based. The notice will also
describe any additional information needed to support the claim and the Plan’s procedures for
appealing the denial. The denial notice will be provided within ninety (90) days after the claim
is received. If special circumstances require an extension of time (up to ninety (90) days),
written notice of the extension will be given within the initial ninety (90) day period. This
notice of extension will indicate the special circumstances requiring the extension of time and the
date by which the Administrator expects to render its decision on the claim. The Administrator has
delegated the claims review responsibility to the Company’s Vice President, Human Resources, except
in the case of a claim filed by or on behalf of the Company’s Vice President, Human Resources, in
which case, the claim will be reviewed by the Company’s Chief Executive Officer.

     16. Appeal Procedure. If the claimant’s claim is denied, the claimant (or his or her
authorized representative) may apply in writing to the Administrator for a review of the decision
denying the claim. Review must be requested within sixty (60) days following the date the claimant
received the written notice of their claim denial or else the claimant loses the right to review.
The claimant (or representative) then has the right to review and obtain copies of all documents
and other information relevant to the claim, upon request and at no charge, and to submit issues
and comments in writing. The Administrator will provide written notice of its decision on review
within sixty (60) days after it receives a review request. If additional time (up to sixty (60)
days) is needed to review the request, the claimant (or representative) will be given written
notice of the reason for the delay. This notice of extension will indicate the special
circumstances requiring the extension of time and the date by which the Administrator expects to
render its decision. If the claim is denied (in full or in part), the claimant will be provided a
written notice explaining the specific reasons for the denial and referring to the provisions of
the Plan on which the denial is based. The notice shall also include a statement that the claimant
will be provided, upon request and free of charge, reasonable access to, and copies of, all
documents and other information relevant to the claim and a statement regarding the claimant’s
right to bring an action under Section 502(a) of ERISA. The Administrator has delegated the
appeals review responsibility to the Company’s Vice President, Human Resources, except in the case
of an appeal filed by or on behalf of the Company’s Vice President, Human Resources, in which case,
the appeal will be reviewed by the Company’s Chief Executive Officer.

     17. Legal Expenses. In the event that, on or following a Change of Control that is triggered
by an occurrence described in Section 2.5(iii) that is not approved by the Board or an occurrence
described in Section 2.5(iv), either party brings an action to enforce or effect its rights under
this Plan, the Company will reimburse the Covered Employee for his or her costs and expenses
incurred in connection with the action (including, without limitation, in connection with the
Covered Employee defending himself against an action brought by the Company to enforce or effect
its rights under the Plan), including the costs of mediation, arbitration, litigation, court fees,
and reasonable attorneys’ fees. Notwithstanding the preceding, no reimbursement will be made to
the Covered Employee for an action originally brought by the Covered Employee if an entity of
competent jurisdiction issues a final order that the Covered Employee’s action was frivolous. This
right to reimbursement will be subject to the following additional requirements: (i) the Covered
Employee must submit documentation of the costs, expenses and fees to be reimbursed within thirty
(30) days of the end of his or her taxable year in

13

 

which the costs, expenses and fees were
incurred; (ii) the amount of any reimbursement provided during his or her taxable year shall not
affect any expenses eligible for reimbursement in any other taxable year; (iii) the reimbursement
of eligible costs and expenses shall be made by the Company within thirty (30) days of the Covered
Employee’s submission of documentation of the costs, expenses and fees to be reimbursed but no
later than the last day of the Covered Employee’s taxable year that immediately follows the taxable
year in which the costs or expenses were incurred; and (iv) the right to any such reimbursement
shall not be subject to liquidation
or exchange for another benefit or payment.

     18. Source of Payments. All Change of Control Severance Benefits and Severance Benefits will
be paid in cash from the general funds of the Company; no separate fund will be established under
the Plan, and the Plan will have no assets. No right of any person to receive any payment under
the Plan will be any greater than the right of any other general unsecured creditor of the Company.

     19. Inalienability. In no event may any current or former employee of the Company or any of
its subsidiaries or affiliates sell, transfer, anticipate, assign or otherwise dispose of any right
or interest under the Plan. At no time will any such right or interest be subject to the claims of
creditors nor liable to attachment, execution or other legal process.

     20. No Enlargement of Employment Rights. Neither the establishment or maintenance of the
Plan, any amendment of the Plan, nor the making of any benefit payment hereunder, will be construed
to confer upon any individual any right to be continued as an employee of the Company. The Company
expressly reserves the right to discharge any of its employees at any time, with or without cause.
However, as described in the Plan, a Covered Employee may be entitled to benefits under the Plan
depending upon the circumstances of his or her termination of employment.

     21. Successors. Any successor to the Company of all or substantially all of the Company’s
business and/or assets (whether direct or indirect and whether by purchase, merger, consolidation,
liquidation or otherwise) will assume the obligations under the Plan and agree expressly to perform
the obligations under the Plan in the same manner and to the same extent as the Company would be
required to perform such obligations in the absence of a succession. For all purposes under the
Plan, the term “Company” will include any successor to the Company’s business and/or assets which
become bound by the terms of the Plan by operation of law, or otherwise.

     22. Applicable Law. The provisions of the Plan will be construed, administered and enforced
in accordance with ERISA and, to the extent applicable, the internal substantive laws of the State
of California (with the exception of its conflict of laws provisions).

     23. Severability. If any provision of the Plan is held invalid or unenforceable, its
invalidity or unenforceability will not affect any other provision of the Plan, and the Plan will
be construed and enforced as if such provision had not been included.

     24. Headings. Headings in this Plan document are for purposes of reference only and will not
limit or otherwise affect the meaning hereof.

     25. Indemnification. The Company hereby agrees to indemnify and hold harmless the officers
and employees of the Company, and the members of its boards of directors, from all losses, claims,
costs or other liabilities arising from their acts or omissions in connection with the
administration, amendment or termination of the Plan, to the maximum extent permitted by applicable
law. This indemnity will cover all such liabilities, including judgments, settlements and costs of
defense. The Company will provide this indemnity from its own funds to the extent that insurance
does not cover such liabilities. This indemnity is in addition to and not in lieu of any other
indemnity provided to such person by the Company.

14

 

     26. Additional Information.

	 	 	 
	Plan Name:

	 	Atmel Corporation Change of Control and Severance Plan
	 
	 	 
	Plan Sponsor:

	 	Atmel Corporation
	 

	 	2325 Orchard Parkway
	 

	 	San Jose, California 95131
	 
	 	 
	Identification Numbers:

	 	EIN: - 77-0051991
	 

	 	PLAN: 503
	 
	 	 
	Plan Year:

	 	Company’s Fiscal Year
	 
	 	 
	Plan Administrator:

	 	Atmel Corporation
	 

	 	Attention: Administrator of the Atmel Corporation Change of Control and Severance Plan
	 

	 	2325 Orchard Parkway
	 

	 	San Jose, California 95131
	 
	 	 
	 

	 	(408) 441-0311
	 
	 	 
	Agent for Service of
Legal Process:

	 	Atmel Corporation
	 

	 	Attention: General Counsel
	 

	 	2325 Orchard Parkway
	 

	 	San Jose, California 95131
	 
	 	 
	 

	 	(408) 441-0311
	 
	 	 
	 

	 	Service of process may also be made upon the Administrator.
	 
	 	 
	Type of Plan

	 	Severance Plan/Employee Welfare Benefit Plan
	 
	 	 
	Plan Costs

	 	The cost of the Plan is paid by the Employer.

     27. Statement of ERISA Rights.

     As a Covered Employee under the Plan, you have certain rights and protections under ERISA:

     (a) You may examine (without charge) all Plan documents, including any amendments and
copies of all documents filed with the U.S. Department of Labor. These documents are
available for your review in the Company’s Human Resources Department.

     (b) You may obtain copies of all Plan documents and other Plan information upon written
request to the Administrator. A reasonable charge may be made for such copies.

     In addition to creating rights for Covered Employees, ERISA imposes duties upon the people who
are responsible for the operation of the Plan. The people who operate the Plan (called
“fiduciaries”) have a duty to

15

 

do so prudently and in the interests of you and the other Covered
Employees. No one, including the Company or any other person, may fire you or otherwise
discriminate against you in any way to prevent you from obtaining a benefit under the Plan or
exercising your rights under ERISA. If your claim for a severance benefit is denied, in whole or
in part, you must receive a written explanation of the reason for the denial. You have the right
to have the denial of your claim reviewed. (The claim review procedure is explained in Sections 15
and 16 above.)

     Under ERISA, there are steps you can take to enforce the above rights. For instance, if you
request materials and do not receive them within thirty (30) days, you may file suit in a federal
court. In such a case, the court may require the Administrator to provide the materials and to pay
you up to $110 a day until you receive the materials, unless the materials were not sent because of
reasons beyond the control of the Administrator. If you have a claim which is denied or ignored,
in whole or in part, you may file suit in a federal court. If it should happen that you are
discriminated against for asserting your rights, you may seek assistance from the U.S. Department
of Labor, or you may file suit in a federal court.

     In any case, the court will decide who will pay court costs and legal fees. If you are
successful, the court may order the person you have sued to pay these costs and fees. If you lose,
the court may order you to pay these costs and fees, for example, if it finds that your claim is
frivolous.

     If you have any questions regarding the Plan, please contact the Administrator. If you have
any questions about this statement or about your rights under ERISA, you may contact the nearest
area office of the Employee Benefits Security Administration (formerly the Pension and Welfare
Benefits Administration), U.S. Department of Labor, listed in your telephone directory, or the
Division of Technical Assistance and Inquiries, Employee Benefits Security Administration, U.S.
Department of Labor, 200 Constitution Avenue, N.W. Washington, D.C. 20210. You may also obtain
certain publications about your rights and responsibilities under ERISA by calling the publications
hotline of the Employee Benefits Security Administration.

16

 

Appendix A

	 	 	 
	Tier	 	Employee Name2
	1
	 	[Includes Executive Officers]
	 	 	 
	2
	 	[Names]

 

			
	2	 	In accordance with Section 2.9, each U.S. employee of the Company
who becomes a Section 16 Officer on or after the Effective Date shall be deemed
to have been designated by the Administrator to participate in the Plan under
Tier 1 as of the date he or she becomes a Section 16 Officer and shall become a
Covered Employee upon execution of a Participation Agreement with the Company.
Appendix A shall be deemed to include each employee described in the preceding
sentence, notwithstanding that Appendix A has not been updated to include such
employee’s name in the table above.

A-1 

 

Appendix B

	 	 	 
	Tier	 	Employee Name3
	1
	 	[Includes Executive Officers]

 

			
	3	 	In accordance with Section 2.9, each U.S. employee of the Company
who becomes a Section 16 Officer on or after the Effective Date shall be deemed
to have been designated by the Administrator to participate in the Plan under
Tier 1 as of the date he or she becomes a Section 16 Officer and shall become a
Covered Employee upon execution of a Participation Agreement with the Company.
Appendix B shall be deemed to include each employee described in the preceding
sentence, notwithstanding that Appendix B has not been updated to include such
employee’s name in the table above.

B-1 

 

Appendix C

ATMEL CORPORATION

CHANGE OF CONTROL AND SEVERANCE PLAN

PARTICIPATION AGREEMENT

     This Participation Agreement (the “Agreement”) with respect to participation in the
Atmel Corporation Change of Control and Severance Plan (the “Plan”) is made as of [Click
and Type Date] by and between Atmel Corporation (the “Company”) and [Click and Type Name]
(“Employee”). Capitalized terms not otherwise defined herein shall have the meanings given
to them in the Plan.

     WHEREAS, the Company has adopted and sponsors the Plan, a copy of which is attached hereto;
and

     WHEREAS, Employee has been selected to participate in the Plan in accordance with and subject
to the terms of the Plan and this Agreement.

     NOW, THEREFORE, in consideration of the mutual promises made herein, the parties hereby agree
as follows:

     1. Participation. Employee has been designated as a Covered Employee in the Plan,
subject to Employee executing this Agreement pursuant to which Employee has agreed to, among other
things, (i) waive his or her rights to any severance benefits provided under any other agreement
with the Company or arrangement or plan sponsored by the Company and (ii) amend any existing
employment or other agreement by and between Employee and the Company pursuant to which Employee is
entitled to receive severance benefits to remove the severance provisions from such agreement. The
terms and conditions of Covered Employee’s participation in the Plan are as set forth in the Plan
and herein.

     2. Severance Benefits. [INSERT THE FOLLOWING FOR TIER 1 COVERED EMPLOYEES IDENTIFIED
ON BOTH APPENDICES A AND B: Upon satisfaction of the conditions set forth in Sections 4 or 5 of the
Plan, as applicable, Employee will be eligible to receive the Change of Control Severance Benefits
set forth in Section 4.1 of the Plan or the Severance Benefits set forth in Section 5.1 of the
Plan, as applicable, subject to compliance with Section 7 of the Plan.] [INSERT THE FOLLOWING FOR
TIER 1 COVERED EMPLOYEES AND TIER 2 COVERED EMPLOYEES IDENTIFIED ON APPENDIX A ONLY: Upon
satisfaction of the conditions set forth in Section 4 of the Plan, Employee will be eligible to
receive the Change of Control Severance Benefits set forth in Section 4.1 of the Plan, subject to
compliance with Section 7 of the Plan.]

     3. Condition to Receipt of Benefits. Employee acknowledges and agrees that
notwithstanding anything herein, in the Plan, or otherwise to the contrary, Employee shall not be
entitled to any payments or benefits from the Company under the Plan or this Agreement in
connection with an Involuntary Termination of Employee’s employment with the Company unless
Employee has signed and not revoked a waiver and release of claims agreement in a form reasonably
satisfactory to the Company. Employee also acknowledges and agrees that receipt of any [INSERT THE
FOLLOWING FOR TIER 1 COVERED EMPLOYEES IDENTIFIED ON BOTH APPENDICES A AND B: Change of Control
Severance Benefits or Severance Benefits] [INSERT THE FOLLOWING FOR TIER 1 COVERED EMPLOYEES AND
TIER 2 COVERED EMPLOYEES IDENTIFIED ON APPENDIX A ONLY: Change of Control Severance Benefits] will
be subject to

C-1 

 

Employee’s compliance with the conditions during the time periods set forth in Sections 7.2
through 7.4 of the Plan.

     4. Interaction with Other Severance Benefit Plans or Arrangements. The change of
control and severance benefits and payments provided under the Plan are intended to be and are
exclusive and in lieu of any other change of control and severance benefits and payments to which
Employee may otherwise be entitled, either at law, tort, or contract, in equity, or under the Plan,
in the event of any termination of Employee’s employment unless otherwise specifically agreed to by
the Employee and the Company in an agreement entered into after the Effective Date of the Plan.
Employee agrees that he or she will be entitled to no change of control or severance benefits or
payments upon a termination of employment that constitute an Involuntary Termination other than
those benefits expressly set forth in the Plan and those benefits required to be provided by
applicable law or as negotiated in accordance with applicable law. [INSERT THE FOLLOWING ONLY FOR
EMPLOYEES CURRENTLY WITH SEVERANCE PROTECTION: In particular, Employee hereby specifically waives
his or her entitlement to change of control and severance benefits and payments pursuant to the
[Letter] [Offer Letter] [Employment Agreement] dated [INSERT DATE] by and between Employee and the
Company.] Employee further agrees to amend any existing employment or other agreement by and
between Employee and the Company pursuant to which Employee is entitled to receive severance
benefits to remove the severance provisions from such agreement. Notwithstanding the foregoing, if
the Employee is entitled to any benefits other than the benefits under the Plan by operation of
applicable law or as negotiated in accordance with applicable law, his or her benefits under the
Plan shall be reduced by the value of the benefits the Employee receives by operation of applicable
law or as negotiated in accordance with applicable law, as determined by the Administrator in its
discretion.

     5. Additional Provisions.

          (a) Severability. If any provision hereof becomes or is declared by a court of
competent jurisdiction to be illegal, unenforceable or void, this Agreement shall continue in full
force and effect without said provision.

          (b) Integration; No Oral Modification. This Agreement and the Plan, constitute the
entire agreement of the parties with respect to the subject matter hereof and supersede all prior
agreements, written or oral. This Agreement may only be amended in writing signed by the parties
hereto.

          (c) Counterparts. This Agreement may be executed in counterparts, and each
counterpart shall have the same force and effect as an original and shall constitute an effective,
binding agreement on the part of each of the undersigned. Execution and delivery of this Agreement
by exchange of facsimile copies bearing the facsimile signature of a party shall constitute a valid
and binding execution and delivery of the Agreement by such party. Such facsimile copies shall
constitute enforceable original documents.

          (d) Headings. All captions and section headings used in this Agreement are for
convenient reference only and do not form a part of this Agreement.

          (e) Tax Withholding. All payments made pursuant to the Plan and this Agreement will
be subject to withholding of applicable taxes.

          (f) Governing Law. This Agreement will be governed by the laws of the State of
California (with the exception of its conflict of laws provisions).

     By their signatures below, the Company and Employee agree that participation in the Plan is
governed by this Agreement and by the provisions of the Plan, a copy of which is attached hereto
and made a part of this

C-2 

 

document. Employee acknowledges receipt of a copy of the Plan, represents that Employee has
read and is familiar with its provisions and the provisions of this Agreement, and acknowledges
that decisions and determinations by the Administrator under the Plan shall be final and binding on
Employee.

(The remainder of this page has been intentionally left blank)

C-3 

 

     IN WITNESS WHEREOF, the undersigned has executed this Agreement as of the date first set forth
above.

	 	 	 	 	 	 	 	 	 
	ATMEL CORPORATION	 	 	 	EMPLOYEE	 	 
	 
	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 
	 

	 	 

[Click and Type Name]
	 	 	 	 

	 	 

C-4 

 

Appendix D-1

ATMEL CORPORATION

CHANGE OF CONTROL AND SEVERANCE PLAN

NON-MUTUAL AGREEMENT AND RELEASE

FOR U.S. TIER 1 COVERED EMPLOYEES4

[Insert form]

 

			
	4	 	[To be modified with respect to Non-U.S. Covered Employees, as
necessary to be effective under and compliant with the applicable law of the
jurisdiction in which the Covered Employee resides or is employed with the
Company]

D-1 

 

Appendix D-2

ATMEL CORPORATION

CHANGE OF CONTROL AND SEVERANCE PLAN

NON-MUTUAL AGREEMENT AND RELEASE

FOR U.S. TIER 2 COVERED EMPLOYEES5

[Insert form]

 

			
	5	 	[To be modified with respect to Non-U.S. Covered Employees, as
necessary to be effective under and compliant with the applicable law of the
jurisdiction in which the Covered Employee resides or is employed with the
Company]

D-2 

 

Appendix E

ATMEL CORPORATION

CHANGE OF CONTROL AND SEVERANCE PLAN

MUTUAL AGREEMENT AND RELEASE

FOR U.S. TIER 1 COVERED EMPLOYEES6

[Insert form]

 

			
	6	 	[To be modified with respect to Non-U.S. Covered Employees, as
necessary to be effective under and compliant with the applicable law of the
jurisdiction in which the Covered Employee resides or is employed with the
Company]

E-1exv10w7

Exhibit 10.7

ATMEL CORPORATION

INDEMNIFICATION AGREEMENT

     This Indemnification Agreement (“Agreement”) is effective as of [DATE], by and between Atmel
Corporation, a Delaware corporation (the “Company”), and [INDIVIDUAL] (“Indemnitee”).

     WHEREAS, the Company desires to attract and retain the services of highly qualified
individuals, such as Indemnitee, to serve the Company and its related entities;

     WHEREAS, Indemnitee is presently the beneficiary of an indemnification agreement with the
Company, dated ___;

     WHEREAS, this agreement is being executed because the Company desires to clarify possible
ambiguities in the present agreement and seeks to ensure Indemnitee that he will be indemnified to
the maximum extent permitted by Delaware law;

     WHEREAS, Indemnitee currently serves as [a director of the Company]/[an officer of the Company
and also may serve at the request of the Company as a director, officer, employee or agent of
various subsidiaries of the Company]/[a director and officer of the Company and also may serve at
the request of the Company as a director, officer, employee or agent of various subsidiaries of the
Company] and Indemnitee is relying upon this Agreement in carrying out the corporate strategy of
the Company, including the restructuring of the Company’s foreign operations, in furtherance of the
interests of the Company and its stockholders;

     WHEREAS, the Company and Indemnitee recognize the continued difficulty in obtaining liability
insurance for the Company’s directors, officers, employees, agents and fiduciaries, the significant
increases in the cost of such insurance and the general reductions in the coverage of such
insurance;

     WHEREAS, the Company and Indemnitee further recognize the substantial increase in corporate
litigation in general, subjecting directors, officers, employees, agents and fiduciaries to
expensive litigation risks at the same time as the availability and coverage of liability insurance
has been severely limited;

     WHEREAS, the Company and Indemnitee desire to continue to have in place the additional
protection provided by an indemnification agreement and to provide indemnification and advancement
of expenses to the Indemnitee to the maximum extent permitted by Delaware law;

     WHEREAS, the Company and Indemnitee acknowledge and agree that, as contemplated by 6 Del. C. §
2708 (“Section 2708”), this Agreement involves at least $100,000 and, therefore, the Company and
Indemnitee intend for Section 2708 and the related legislative commentary, which specifies that
Section 2708 was intended to supersede all Delaware common law limitations on the enforceability of
choice of law provisions (including any restrictions contained in the Restatement (Second) Conflict
of Laws), as well as limitations on contractual consent to jurisdiction or service of process, to
apply to this Agreement; and

     WHEREAS, in view of the considerations set forth above, the Company desires that Indemnitee
shall be indemnified and advanced expenses by the Company as set forth herein;

 

 

     NOW, THEREFORE, the Company and Indemnitee hereby agree as set forth below.

     1. Certain Definitions.

          (a) “Change in Control” shall mean, and shall be deemed to have occurred if, on or after the
date of this Agreement, (i) any “person” (as such term is used in Sections 13(d) and 14(d) of the
Securities Exchange Act of 1934, as amended, (the “Exchange Act”)), other than a trustee or other
fiduciary holding securities under an employee benefit plan of the Company acting in such capacity
or a corporation owned directly or indirectly by the stockholders of the Company in substantially
the same proportions as their ownership of stock of the Company, becomes the “beneficial owner” (as
defined in Rule 13d-3 under said Exchange Act), directly or indirectly, of securities of the
Company representing more than 50% of the total voting power represented by the Company’s then
outstanding Voting Securities, (ii) during any period of two consecutive years, individuals who at
the beginning of such period constitute the Board of Directors of the Company and any new director
whose election by the Board of Directors or nomination for election by the Company’s stockholders
was approved by a vote of at least two thirds (2/3) of the directors then still in office who
either were directors at the beginning of the period or whose election or nomination for election
was previously so approved, cease for any reason to constitute a majority thereof, or (iii) the
stockholders of the Company approve a merger or consolidation of the Company with any other
corporation other than a merger or consolidation which would result in the Voting Securities of the
Company outstanding immediately prior thereto continuing to represent (either by remaining
outstanding or by being converted into Voting Securities of the surviving entity) at least 80% of
the total voting power represented by the Voting Securities of the Company or such surviving entity
outstanding immediately after such merger or consolidation, or the stockholders of the Company
approve a plan of complete liquidation of the Company or an agreement for the sale or disposition
by the Company of (in one transaction or a series of related transactions) all or substantially all
of the Company’s assets.

          (b) “Claim” shall mean with respect to a Covered Event: any threatened, pending or completed
action, suit, proceeding or alternative dispute resolution mechanism, or any hearing, inquiry or
investigation, in any federal, state, local or foreign jurisdiction, that Indemnitee in good faith
believes might lead to the institution of any such action, suit, proceeding or alternative dispute
resolution mechanism, whether civil, criminal, administrative, investigative or other. For the
avoidance of doubt, it is specified that, with respect to a foreign jurisdiction, the terms action,
suit, proceeding, dispute, hearing, inquiry or investigation as used herein shall include all
corresponding terms usually describing such situations in said foreign jurisdiction.

          (c) References to the “Company” shall include, in addition to Atmel Corporation, any
constituent corporation (including any constituent of a constituent) absorbed in a consolidation or
merger to which Atmel Corporation (or any of its wholly owned subsidiaries) is a party which, if
its separate existence had continued, would have had power and authority to indemnify its
directors, officers, employees, agents or fiduciaries, so that if Indemnitee is or was a director,
officer, employee, agent or fiduciary of such constituent corporation, or is or was serving at the
request of such constituent corporation as a director, officer, employee, agent or fiduciary of
another corporation, partnership, joint venture, employee benefit plan, trust or other enterprise,
Indemnitee shall stand in the same position under the provisions of this Agreement with respect to
the resulting or surviving corporation as Indemnitee would have with respect to such constituent
corporation if its separate existence had continued.

          (d) “Covered Event” shall mean any event or occurrence, whether in each case occurring before
or after the date of this Agreement, related to the fact that Indemnitee is or was a director,
officer,

2

 

employee, agent or fiduciary of the Company, or any subsidiary of the Company (including
without limitation any foreign subsidiary whether or not such subsidiary is wholly owned by the
Company, directly or indirectly), or is or was serving at the request of the Company as a director,
officer, employee, agent or fiduciary of another corporation, partnership, joint venture, trust or
other enterprise, or by reason of any action or inaction on the part of Indemnitee while serving in
such capacity. Any reference in this Agreement to director(s), officer(s), employee(s), agent(s) or fiduciary(ies) shall include without limitation de facto,
shadow or de jure director(s), officer(s), employee(s), agent(s) or fiduciary(ies).

          (e) “Expenses” shall mean any and all expenses (including attorneys’ fees and all other costs,
expenses and obligations incurred in connection with investigating, defending, being a witness in
or participating in (including on appeal), or preparing to defend, to be a witness in or to
participate in, any action, suit, proceeding, alternative dispute resolution mechanism, hearing,
inquiry or investigation), civil, criminal and/or administrative judgments (including, without
limitation, all punitive and/or remedial damages to be paid by Indemnitee as a result of a Covered
Event qualifying as a criminal offence, or triggering indemnification obligations in connection
with insolvency procedures), fines, penalties and any amounts paid in settlement (if such
settlement is approved in advance by the Company, which approval shall not be unreasonably
withheld), actually and reasonably incurred, of any Claim and any federal, state, local or foreign
taxes imposed on the Indemnitee as a result of the actual or deemed receipt of any payments under
this Agreement.

          (f) “Expense Advance” shall mean a payment to Indemnitee pursuant to Section 3 of Expenses in
advance of the settlement of or final judgement in any action, suit, proceeding or alternative
dispute resolution mechanism, hearing, inquiry or investigation which constitutes a Claim.

          (g) “Independent Legal Counsel” shall mean an attorney or firm of attorneys, selected in
accordance with the provisions of Section 2(d) hereof, who shall not have otherwise performed
services for the Company or Indemnitee within the last three years (other than with respect to
matters concerning the rights of Indemnitee under this Agreement, or of other indemnitees under
similar indemnity agreements).

          (h) “Law” shall mean Delaware and U.S. laws (but in the case of U.S. laws, only with respect
to the applicable indemnification provisions of the federal securities laws), without reference to
any foreign laws.

          (i) References to “other enterprises” shall include employee benefit plans; references to
“fines” shall include any excise taxes assessed on Indemnitee with respect to an employee benefit
plan; and references to “serving at the request of the Company” shall include any service as a
director, officer, employee, agent or fiduciary of the Company which imposes duties on, or involves
services by, such director, officer, employee, agent or fiduciary with respect to an employee
benefit plan, its participants or its beneficiaries; and if Indemnitee acted in good faith and in a
manner Indemnitee reasonably believed to be in the interest of the participants and beneficiaries
of an employee benefit plan, Indemnitee shall be deemed to have acted in a manner “not opposed to
the best interests of the Company” as referred to in this Agreement.

          (j) “Reviewing Party” shall mean, subject to the provisions of Section 2(d), any person or
body appointed by the Board of Directors in accordance with Law to review the Company’s obligations
hereunder and under Law, which may include a member or members of the Company’s Board of Directors,
Independent Legal Counsel or any other person or body not a party to the particular Claim for which
Indemnitee is seeking indemnification.

          (k) “Section” refers to a section of this Agreement unless otherwise indicated.

3

 

          (l) “Voting Securities” shall mean any securities of the Company that vote generally in the
election of directors.

     2. Indemnification.

          (a) Indemnification of Expenses. Subject to the provisions of Section 2(b) below, the
Company shall indemnify Indemnitee for Expenses to the fullest extent permitted by Law, if
Indemnitee was or is or becomes a party to or witness or other participant in, or is threatened to
be made a party to or witness or other participant in, any Claim (whether by reason of or arising
in part out of a Covered Event), including all interest, assessments and other charges paid or
payable in connection with or in respect of such Expenses.

          (b) Review of Indemnification Obligations. Notwithstanding the foregoing, in the
event any Reviewing Party shall have determined (in a written opinion, in any case in which
Independent Legal Counsel is the Reviewing Party) that Indemnitee is not entitled to be indemnified
hereunder under Law, (i) the Company shall have no further obligation under Section 2(a) to make
any payments to Indemnitee not made prior to such determination by such Reviewing Party, and (ii)
the Company shall be entitled to be reimbursed by Indemnitee (who hereby agrees to reimburse the
Company) for all Expenses theretofore paid in indemnifying Indemnitee; provided, however, that if
Indemnitee has commenced or thereafter commences legal proceedings in a court of competent
jurisdiction to secure a determination that Indemnitee is entitled to be indemnified hereunder
under Law, any determination made by any Reviewing Party that Indemnitee is not entitled to be
indemnified hereunder under Law shall not be binding and Indemnitee shall not be required to
reimburse the Company for any Expenses theretofore paid in indemnifying Indemnitee until a final
judicial determination is made with respect thereto (as to which all rights of appeal therefrom
have been exhausted or lapsed). Indemnitee’s obligation to reimburse the Company for any Expenses
shall be unsecured and no interest shall be charged thereon.

          (c) Indemnitee Rights on Unfavorable Determination; Binding Effect. If any Reviewing
Party determines that Indemnitee substantively is not entitled to be indemnified hereunder in whole
or in part under Law, Indemnitee shall have the right to commence litigation seeking an initial
determination by the court or challenging any such determination by such Reviewing Party or any
aspect thereof, including the legal or factual bases therefor, and, subject to the provisions of
Section 15, the Company hereby consents to service of process and to appear in any such proceeding.
Absent such litigation, any determination by any Reviewing Party shall be conclusive and binding
on the Company and Indemnitee.

          (d) Selection of Reviewing Party; Change in Control. If there has not been a Change
in Control, any Reviewing Party shall be selected by the Board of Directors, and if there has been
such a Change in Control (other than a Change in Control which has been approved by a majority of
the Company’s Board of Directors who were directors immediately prior to such Change in Control),
any Reviewing Party with respect to all matters thereafter arising concerning the rights of
Indemnitee to indemnification of Expenses under this Agreement or any other agreement or under the
Company’s Certificate of Incorporation or Bylaws as now or hereafter in effect, or under Law, if
desired by Indemnitee, shall be Independent Legal Counsel selected by Indemnitee and approved by
the Company (which approval shall not be unreasonably withheld). Such counsel, among other things,
shall render its written opinion to the Company and Indemnitee as to whether and to what extent
Indemnitee would be entitled to be indemnified hereunder under Law and the Company agrees to abide
by such opinion. The Company agrees to pay the reasonable fees of the Independent Legal Counsel
referred to above and to indemnify fully such counsel against any and all expenses (including
attorneys’ fees), claims, liabilities and damages arising out of or relating to this Agreement or
its engagement pursuant hereto. Notwithstanding any other provision of this Agreement, the

4

 

Company
shall not be required to pay Expenses of more than one Independent Legal Counsel in connection with
all matters concerning a single Indemnitee, and such Independent Legal Counsel shall be the
Independent Legal Counsel for any or all other Indemnitees unless (i) the Company otherwise
determines or (ii) any Indemnitee shall provide a written statement setting forth in detail a
reasonable objection to such Independent Legal Counsel representing other Indemnitees.

          (e) Mandatory Payment of Expenses. Notwithstanding any other provision of this
Agreement other than Section 10 hereof, to the extent that Indemnitee has been successful on the
merits or otherwise, including, without limitation, the dismissal of an action without prejudice,
in defense of any Claim, Indemnitee shall be indemnified against all Expenses incurred by
Indemnitee in connection therewith.

     3. Expense Advances.

          (a) Obligation to Make Expense Advances. Upon receipt of a written undertaking by or
on behalf of the Indemnitee to repay such amounts if it shall ultimately be determined that the
Indemnitee is not entitled to be indemnified therefor by the Company, the Company shall make
Expense Advances to Indemnitee.

          (b) Form of Undertaking. Any written undertaking by the Indemnitee to repay any
Expense Advances hereunder shall be unsecured and no interest shall be charged thereon.

          (c) Determination of Reasonable Expense Advances. The parties agree that for the
purposes of any Expense Advance for which Indemnitee has made written demand to the Company in
accordance with this Agreement, all Expenses included in such Expense Advance that are certified by
affidavit of Indemnitee’s counsel as being reasonable shall be presumed conclusively to be
reasonable.

     4. Procedures for Indemnification and Expense Advances.

          (a) Timing of Payments. All payments of Expenses (including without limitation
Expense Advances) by the Company to the Indemnitee pursuant to this Agreement shall be made to the
fullest extent permitted by Law as soon as practicable after written demand by Indemnitee therefor
is presented to the Company, but in no event later than forty-five (45) business days after such
written demand by Indemnitee is presented to the Company, except in the case of Expense Advances,
which shall be made no later than twenty (20) business days after such written demand by Indemnitee
is presented to the Company.

          (b) Notice/Cooperation by Indemnitee. Indemnitee shall, as a condition precedent to
Indemnitee’s right to be indemnified or Indemnitee’s right to receive Expense Advances under this
Agreement, give the Company notice in writing as soon as practicable of any Claim made against
Indemnitee for which indemnification will or could be sought under this Agreement. Notice to the
Company shall be directed to the Chief Executive Officer of the Company at the address shown on the
signature page of this Agreement (or such other address as the Company shall designate in writing
to Indemnitee). In addition, Indemnitee shall give the Company such information and cooperation as
it may reasonably require and as shall be within Indemnitee’s power.

          (c) No Presumptions; Burden of Proof. For purposes of this Agreement, the termination
of any Claim by judgment, order, settlement (whether with or without court approval) or conviction,
or upon a plea of nolo contendere, or its equivalent, shall not create a presumption that
Indemnitee did not meet any particular standard of conduct or have any particular belief or that a
court has determined that indemnification is not permitted by this Agreement or Law. In addition,
neither the failure of any Reviewing

5

 

Party to have made a determination as to whether Indemnitee
has met any particular standard of conduct or had any particular belief, nor an actual
determination by any Reviewing Party that Indemnitee has not met such standard of conduct or did
not have such belief, prior to the commencement of legal proceedings by Indemnitee to secure a
judicial determination that Indemnitee should be indemnified under this Agreement or Law, shall be
a defense to Indemnitee’s claim or create a presumption that Indemnitee has not met any particular
standard of conduct or did not have any particular belief. In
connection with any determination by any Reviewing Party or
otherwise as to whether the Indemnitee is entitled to be indemnified hereunder, the burden of
proof shall be on the Company to establish that Indemnitee is not so entitled.

          (d) Notice to Insurers. If, at the time of the receipt by the Company of a notice of
a Claim pursuant to Section 4(b) hereof, the Company has liability insurance in effect which may
cover such Claim, the Company shall give prompt notice of the commencement of such Claim to the
insurers in accordance with the procedures set forth in the respective policies. The Company shall
thereafter take all necessary or desirable action to cause such insurers to pay, on behalf of the
Indemnitee, all amounts payable as a result of such Claim in accordance with the terms of such
policies.

          (e) Selection of Counsel. In the event the Company shall be obligated hereunder to
provide indemnification for or make any Expense Advances with respect to the Expenses of any Claim,
the Company, if appropriate, shall be entitled to assume the defense of such Claim with counsel
approved by Indemnitee (which approval shall not be unreasonably withheld) upon the delivery to
Indemnitee of written notice of the Company’s election to do so. After delivery of such notice,
approval of such counsel by Indemnitee and the retention of such counsel by the Company, the
Company will not be liable to Indemnitee under this Agreement for any fees or expenses of separate
counsel subsequently employed by or on behalf of Indemnitee with respect to the same Claim;
provided that, (i) Indemnitee shall have the right to employ Indemnitee’s separate counsel in any
such Claim at Indemnitee’s expense and (ii) if (A) the employment of separate counsel by Indemnitee
has been previously authorized by the Company, (B) Indemnitee shall have reasonably concluded that
there may be a conflict of interest between the Company and Indemnitee in the conduct of any such
defense, or (C) the Company shall not continue to retain such counsel to defend such Claim, then
the fees and expenses of Indemnitee’s separate counsel shall be Expenses for which Indemnitee may
receive indemnification or Expense Advances hereunder.

     5. Additional Indemnification Rights; Nonexclusivity.

          (a) Scope. The Company hereby agrees to indemnify the Indemnitee to the fullest
extent permitted by Law, notwithstanding that such indemnification is not specifically authorized
by the other provisions of this Agreement, the Company’s Certificate of Incorporation, the
Company’s Bylaws or by statute. In the event of any change after the date of this Agreement in
Law, statute or rule which expands the right of a Delaware corporation to indemnify its directors,
officers, employees, agents or fiduciaries, it is the intent of the parties hereto that Indemnitee
shall enjoy by this Agreement the greater benefits afforded by such change. In the event of any
change in Law, statute or rule which narrows the right of a Delaware corporation to indemnify its
directors, officers, employees, agents or fiduciaries, such change, to the extent not otherwise
required by Law to be applied to this Agreement, shall have no effect on this Agreement or the
parties’ rights and obligations hereunder except as set forth in Section 10(a) hereof.

          (b) Nonexclusivity. The indemnification and the payment of Expense Advances provided
by this Agreement shall be in addition to any rights to which Indemnitee may be entitled under the
Company’s Certificate of Incorporation, its Bylaws, any other agreement, any vote of stockholders
or disinterested directors, the General Corporation Law of the State of Delaware, or otherwise.
The indemnification and the payment of Expense Advances provided under this Agreement shall
continue as to Indemnitee for any action

6

 

taken or not taken while serving in an indemnified
capacity even though subsequent thereto Indemnitee may have ceased to serve in such capacity.

     6. No Duplication of Payments. The Company shall not be liable under this Agreement
to make any payment in connection with any Claim made against Indemnitee to the extent Indemnitee
has otherwise actually received payment (under any insurance policy, provision of the Company’s Certificate of
Incorporation, Bylaws or otherwise) of the amounts otherwise payable hereunder.

     7. Partial Indemnification. If Indemnitee is entitled under any provision of this
Agreement to indemnification by the Company for some or a portion of Expenses incurred in
connection with any Claim, but not, however, for all of the total amount thereof, the Company shall
nevertheless indemnify Indemnitee for the portion of such Expenses to which Indemnitee is entitled.

     8. Mutual Acknowledgment. Both the Company and Indemnitee acknowledge that in certain
instances, Law may prohibit the Company from indemnifying its directors, officers, employees,
agents or fiduciaries under this Agreement or otherwise. Indemnitee understands and acknowledges
that the Company has undertaken or may be required in the future to undertake with the Securities
and Exchange Commission to submit the question of indemnification to a court in certain
circumstances for a determination of the Company’s right under public policy to indemnify
Indemnitee.

     9. Liability Insurance. To the extent the Company maintains liability insurance
applicable to directors, officers, employees, agents or fiduciaries, Indemnitee shall be covered by
such policies in such a manner as to provide Indemnitee the same rights and benefits as are
provided to the most favorably insured of the Company’s directors, if Indemnitee is a director; or
of the Company’s officers, if Indemnitee is not a director of the Company but is an officer; or of
the Company’s key employees, agents or fiduciaries, if Indemnitee is not an officer or director but
is a key employee, agent or fiduciary. For the purpose of this paragraph, the term “Company” shall
also include any direct or indirect subsidiary (including without limitation any foreign subsidiary
whether or not such subsidiary is wholly owned by the Company, directly or indirectly) of the
Company.

     10. Exceptions. Notwithstanding any other provision of this Agreement, the Company
shall not be obligated pursuant to the terms of this Agreement:

          (a) Excluded Action or Omissions. To indemnify Indemnitee for Expenses resulting from
acts, omissions or transactions for which Indemnitee is prohibited from receiving indemnification
under this Agreement or Law; provided, however, that notwithstanding any limitation set forth in
this Section 10(a) regarding the Company’s obligation to provide indemnification, Indemnitee shall
be entitled under Section 3 to receive Expense Advances hereunder with respect to any such Claim
unless and until a court having jurisdiction over the Claim shall have made a final judicial
determination (as to which all rights of appeal therefrom have been exhausted or lapsed) that
Indemnitee has engaged in acts, omissions or transactions for which Indemnitee is prohibited from
receiving indemnification under this Agreement or Law.

          (b) Claims Initiated by Indemnitee. To indemnify or make Expense Advances to
Indemnitee with respect to Claims initiated or brought voluntarily by Indemnitee and not by way of
defense, counterclaim or cross claim, except (i) with respect to actions or proceedings brought to
establish or enforce a right to indemnification under this Agreement or any other agreement or
insurance policy or under the Company’s Certificate of Incorporation or Bylaws now or hereafter in
effect relating to Claims for Covered Events, (ii) in specific cases if the Board of Directors has
approved the initiation or bringing of such Claim, or (iii) as otherwise required under Section 145
of the Delaware General Corporation Law, regardless of

7

 

whether Indemnitee ultimately is determined
to be entitled to such indemnification or insurance recovery, as the case may be.

          (c) Lack of Good Faith. To indemnify Indemnitee for any Expenses incurred by the
Indemnitee with respect to any action instituted (i) by Indemnitee to enforce or interpret this
Agreement, if a court having jurisdiction over such action determines as provided in Section 13
that each of the material assertions made by the Indemnitee as a basis for such action was not made
in good faith or was frivolous, or (ii) by or in the name of the Company to enforce or interpret
this Agreement, if a court having jurisdiction over such action determines as provided in Section
13 that each of the material defenses asserted by Indemnitee in such action was made in bad faith
or was frivolous.

          (d) Claims Under Section 16(b). To indemnify Indemnitee for expenses and the payment
of profits arising from the purchase and sale by Indemnitee of securities in violation of Section
16(b) of the Exchange Act, or any similar successor statute; provided, however, that
notwithstanding any limitation set forth in this Section 10(d) regarding the Company’s obligation
to provide indemnification, Indemnitee shall be entitled under Section 3 to receive Expense
Advances hereunder with respect to any such Claim unless and until a court having jurisdiction over
the Claim shall have made a final judicial determination (as to which all rights of appeal
therefrom have been exhausted or lapsed) that Indemnitee has violated said statute.

     11. Counterparts. This Agreement may be executed in one or more counterparts, each of
which shall constitute an original.

     12. Binding Effect; Successors and Assigns. This Agreement shall be binding upon and
inure to the benefit of and be enforceable by the parties hereto and their respective successors,
assigns (including any direct or indirect successor by purchase, merger, consolidation or otherwise
to all or substantially all of the business or assets of the Company and its subsidiaries on a
consolidated basis (including without limitation any foreign subsidiary whether or not such
subsidiary is wholly owned by the Company, directly or indirectly), spouses, heirs and personal and
legal representatives. The Company shall require and cause any successor (whether direct or
indirect, and whether by purchase, merger, consolidation or otherwise) to all, substantially all,
or a substantial part, of the business or assets of the Company and its subsidiaries on a
consolidated basis (including without limitation any foreign subsidiary whether or not such
subsidiary is wholly owned by the Company, directly or indirectly), by written agreement in form
and substance satisfactory to Indemnitee, expressly to assume and agree to perform this Agreement
in the same manner and to the same extent that the Company would be required to perform if no such
succession had taken place. This Agreement shall continue in effect regardless of whether
Indemnitee continues to serve as a director, officer, employee, agent or fiduciary (as applicable)
of the Company or of any other enterprise at the Company’s request.

     13. Expenses Incurred in Action Relating to Enforcement or Interpretation. In the
event that any action is instituted by Indemnitee under this Agreement or under any liability
insurance policies maintained by the Company to enforce or interpret any of the terms hereof or
thereof, Indemnitee shall be entitled to be indemnified for all Expenses incurred by Indemnitee
with respect to such action (including without limitation attorneys’ fees), regardless of whether
Indemnitee is ultimately successful in such action, unless as a part of such action a court having
jurisdiction over such action makes a final judicial determination (as to which all rights of
appeal therefrom have been exhausted or lapsed) that each of the material assertions made by
Indemnitee as a basis for such action was not made in good faith or was frivolous; provided,
however, that until such final judicial determination is made, Indemnitee shall be entitled under
Section 3 to receive payment of Expense Advances hereunder with respect to such action. In the
event of an action instituted by or in the name of the Company under this Agreement to enforce or
interpret any of the terms of this

8

 

Agreement, Indemnitee shall be entitled to be indemnified for
all Expenses incurred by Indemnitee in defense of such action (including without limitation costs
and expenses incurred with respect to Indemnitee’s counterclaims and cross-claims made in such
action), unless as a part of such action a court having jurisdiction over such action makes a final
judicial determination (as to which all rights of appeal therefrom have been exhausted or
lapsed) that each of the material defenses asserted by Indemnitee in such action was made in bad
faith or was frivolous; provided, however, that until such final
judicial determination is made, Indemnitee shall be entitled under Section 3 to receive payment of Expense Advances hereunder with
respect to such action.

     14. Notice. All notices, requests, demands and other communications under this
Agreement shall be in writing and shall be deemed duly given (i) if delivered by hand and signed
for by the party addressed, on the date of such delivery, or (ii) if mailed by domestic certified
or registered mail with postage prepaid, on the third business day after the date postmarked.
Addresses for notice to either party are as shown on the signature page of this Agreement, or as
subsequently modified by written notice.

     15. Consent to Jurisdiction and Service of Process. The Company and Indemnitee each
hereby irrevocably consent to the jurisdiction of the courts of the State of Delaware for all
purposes in connection with any action or proceeding which arises out of or relates to this
Agreement and agree that any action instituted under this Agreement shall be commenced, prosecuted
and continued only in the Court of Chancery of the State of Delaware in and for New Castle County,
which shall be the exclusive and only proper forum for adjudicating such a claim. The Company and
Indemnitee hereby agree that service of process may be made by registered or certified mail
addressed to the addressee as shown on the signature page of this Agreement or as subsequently
modified by written notice.

     16. Severability. The provisions of this Agreement shall be severable in the event
that any of the provisions hereof (including any provision within a single section, paragraph or
sentence) are held by a court of competent jurisdiction to be invalid, void or otherwise
unenforceable, and the remaining provisions shall remain enforceable to the fullest extent
permitted by Law. Furthermore, to the fullest extent possible, the provisions of this Agreement
(including without limitation each portion of this Agreement containing any provision held to be
invalid, void or otherwise unenforceable, that is not itself invalid, void or unenforceable) shall
be construed so as to give effect to the intent manifested by the provision held invalid, illegal
or unenforceable.

     17. Choice of Law. This Agreement, and all rights, remedies, liabilities, powers and
duties of the parties to this Agreement, shall be governed by and construed in accordance with the
laws of the State of Delaware without regard to principles of conflicts of laws.

     18. Subrogation. In the event of payment under this Agreement, the Company shall be
subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who shall
execute all documents required and shall do all acts that may be necessary to secure such rights
and to enable the Company effectively to bring suit to enforce such rights.

     19. Amendment and Termination. No amendment, modification, termination or
cancellation of this Agreement shall be effective unless it is in writing signed by both the
parties hereto. No waiver of any of the provisions of this Agreement shall be deemed to be or
shall constitute a waiver of any other provisions hereof (whether or not similar), nor shall such
waiver constitute a continuing waiver.

9

 

     20. Integration and Entire Agreement. This Agreement sets forth the entire
understanding between the parties hereto and supersedes and merges all previous written and oral
negotiations, commitments, understandings and agreements relating to the subject matter hereof
between the parties hereto.

     21. No Construction as Employment Agreement. Nothing contained in this Agreement
shall be construed as giving Indemnitee any right to be retained in the employ of the Company or
any of its subsidiaries or affiliated entities.

10

 

     IN WITNESS WHEREOF, the parties hereto have executed this Indemnification Agreement effective
as of the date first above written.

	 	 	 	 	 
	 	ATMEL CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  		 
	 	 	Address:  	 	 
	 

	 	 	 	 	 
	 	AGREED TO AND ACCEPTED

INDEMNITEE:

 	 
	 	 	 
	 	 	 
	 	NAME:  [INDIVIDUAL]

	 
	 
	 	

TITLE:  [TITLE]

	 
	 
	 	

ADDRESS: 	 
	 

11

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00161-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00161-of-00352.parquet"}]]