Document:

exv10w49

Exhibit 10.49

TRIDENT MICROSYSTEMS, INC.

CHANGE OF CONTROL POLICY FOR 

NON-EXECUTIVE OFFICERS AND EMPLOYEES

     1. Purpose and Eligibility

          1.1 Purpose. This Trident Microsystems, Inc. Change of Control Policy for Non-Executive
Officers and Employees (“Policy”) is effective as of December 15, 2010. The purpose of this Policy
is to encourage the continued dedication of Trident Microsystems Inc.’s (“Company”) employees
notwithstanding the possibility or occurrence of a Change in Control (as defined below).

          1.2 Eligibility. This Policy applies only to non-executive officers and employees of the
Company Group (employees at or below the level of Senior Vice President). This Policy does not
apply to any executive officers or employees of the Company Group who are covered by the Company’s
Amended and Restated Executive Retention and Severance Plan. Employees covered by this Policy are
referred to hereafter as an “Eligible Employee” or “Eligible Employees.”

     
2. Definitions

          As used in this Policy:

               (a) “Annual Target Bonus Rate” means an amount equal to the aggregate of all annual incentive
bonuses that would be earned by the Eligible Employee at the targeted annual rate (assuming
attainment of 100% of all applicable performance goals) under the terms of the programs, plans or
agreements providing for such bonuses in which the Eligible Employee was participating for the
fiscal year of the Company in which the Eligible Employee’s Termination occurs. For this purpose,
annual incentive bonuses shall not include signing bonuses or other nonrecurring cash incentive
awards.

               (b) “Base Salary Rate” means the greater of the Eligible Employee’s (i) monthly base salary
rate in effect immediately prior to his/her Termination, or (ii) monthly base salary rate in effect
immediately prior to a Change in Control, in either case without giving effect to any reduction in
the Eligible Employee’s base salary rate that constitutes a Good Reason. For this purpose, base
salary does not include any bonuses, commissions, fringe benefits, car allowances, other irregular
payments or any other compensation except base salary.

               (c) “Cause” means the occurrence of any of the following: (1) the Eligible Employee’s theft,
dishonesty, misconduct, breach of fiduciary duty for personal profit, or falsification of any
documents or records of the Company Group (as defined below); (2) the Eligible Employee’s material
failure to abide by the code of conduct or other policies (including, without limitation, policies
relating to confidentiality and reasonable workplace conduct) of any member of the Company Group;
(3) the Eligible Employee’s unauthorized use, misappropriation, destruction or diversion of any
tangible or intangible asset or corporate

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opportunity of a member of the Company Group (including, without limitation, the Eligible
Employee’s improper use or disclosure of the confidential or proprietary information of a member of
the Company Group); (4) any intentional act by the Eligible Employee which has a material
detrimental effect on the reputation or business of a member of the Company Group; (5) the Eligible
Employee’s repeated failure or inability to perform any reasonable assigned duties after written
notice from a member of the Company Group of, and a reasonable opportunity to cure, such failure or
inability; (6) any material breach by the Eligible Employee of any agreement between the Eligible
Employee and a member of the Company Group; or (7) the Eligible Employee’s conviction (including
any plea of guilty or nolo contendere) of any criminal act involving fraud, dishonesty,
misappropriation or moral turpitude, or which impairs the Eligible Employee’s ability to perform
his or her duties for a member of the Company Group.

               (d) “Change in Control” means the occurrence of any of the following:

                    (1) 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 of the Company under an employee benefit plan of the Company, acquires (or has acquired
during the 12-month period ending on the date of the most recent acquisition by such person)
“beneficial ownership” (as defined in Rule 13d-3 promulgated under the Exchange Act), directly or
indirectly, of stock of the Company representing more than percent (50%) of the total combined
voting power of the Company’s then-outstanding stock entitled to vote generally in the election of
directors;

                    (2) the Company is party to a merger or consolidation which results in the holders of the
voting stock of the Company outstanding immediately prior thereto failing to retain immediately
after such merger or consolidation direct or indirect beneficial ownership of more than fifty
percent (50%) of the total combined voting power of the stock entitled to vote generally in the
election of directors of the Company or the surviving entity outstanding immediately after such
merger or consolidation;

                    (3) the sale or disposition of all or substantially all of the Company’s assets or
consummation of any transaction having similar effect (other than a sale or disposition to one or
more subsidiaries of the Company); or

                    (4) a change in the composition of the Company’s Board of Directors (the “Board”) within any
consecutive 12-month period as a result of which fewer than a majority of the directors are
Incumbent Directors;

provided, however, that a Change in Control shall be deemed not to include a transaction
described in subsections (1) or (2) of this Section in which a majority of the members of the board
of directors of the continuing, surviving or successor entity, or parent thereof, immediately after
such transaction is comprised of directors who were members of the Board immediately prior to
consummation of such transaction. Notwithstanding the foregoing, to the extent that any amount
constituting Section 409A Deferred Compensation would become payable under this Plan by reason of a
Change in Control, such amount shall become payable only if the event constituting a Change in
Control would also constitute a change in ownership or effective control

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of the Company or a change in the ownership of a substantial portion of the assets of the Company
within the meaning of Section 409A.

               (e) “Change in Control Period” means a period commencing upon the consummation of a Change in
Control and ending on the date occurring eighteen (18) months thereafter.

               (f) “Code” means the Internal Revenue Code of 1986, as amended, or any successor thereto and
any applicable regulations promulgated thereunder.

               (g) “Company” means Trident Microsystems, Inc., a Delaware corporation, and, following a
Change in Control, a Successor that agrees to assume all of the terms and provisions of this Policy
or a Successor that otherwise becomes bound by operation of law to this Policy.

               (h) “Company Group” means the group consisting of the Company and each present or future
parent and subsidiary corporation or other business entity thereof.

               (i) “Disability” means an Eligible Employee’s permanent and total disability within the
meaning of Section 22(e)(3) of the Code.

               (j) “Equity Award” means any stock option, restricted stock, restricted stock units,
performance shares, performance units or other stock-based compensation award granted by the
Company or any other Company Group member to an Eligible Employee, including any such award which
is assumed by, or for which a replacement award is substituted by, the Company’s successor or any
other member of the Company Group in connection with a Change in Control.

               (k) “Good Reason” means the occurrence of any of the following conditions without the Eligible
Employee’s written consent, which condition(s) remain(s) in effect thirty (30) days after written
notice to the Company from the Eligible Employee of such condition(s) and which notice must have
been given within ninety (90) days following the initial occurrence of such condition(s):

                    (1) a material diminution in the Eligible Employee’s authority, duties or responsibilities,
causing the Eligible Employee’s position to be of materially lesser rank or responsibility within
the Company or an equivalent business unit of its parent, as measured against the Eligible
Employee’s authority, duties or responsibilities immediately prior to (A) such diminution, or (B) a
Change in Control;

                    (2) a material decrease in the Eligible Employee’s Base Salary Rate or Annual Target Bonus
Rate (subject to applicable performance requirements with respect to the actual amount of the
Annual Target Bonus Rate earned and paid), other than any such material decrease that occurs in
connection with a decrease that is imposed on all employees of the Company Group at the time of
such decrease; or

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                    (3) the relocation of the Eligible Employee’s work place for the Company Group to a location
that increases the regular commute distance between the Eligible Employee’s residence and work
place by more than thirty (30) miles (one-way).

In the event that an Eligible Employee continues his/her employment with the Company for a period
of one hundred eighty (180) days or more following the occurrence of any condition constituting
Good Reason, such condition shall no longer constitute Good Reason.

               (l) “Incumbent Director” means a director who either (1) is a member of the Board as of the
Effective Date, or (2) is elected, or nominated for election, to the Board with the affirmative
votes of at least a majority of the Incumbent Directors at the time of such election or nomination,
but (3) was not elected or nominated in connection with an actual or threatened proxy contest
relating to the election of directors of the Company.

               (m) “Performance-Based Equity Award” means an Equity Award granted to an Eligible Employee
prior to any Change in Control, the vesting or earning of which is conditioned in whole or in part
upon the achievement of one or more performance goals (e.g., the attainment of a target stock price
or achievement of a corporate financial goal), notwithstanding that the vesting or earning of such
Equity Award may also be conditioned upon the continued performance of services by the Eligible
Employee for the Company Group.

               (n) “Separation Agreement and Release” means a separation agreement in a form satisfactory to
the Company Group, which agreement includes a general release of all known and unknown claims
against the Company Group and their affiliated persons and entities.

               (o) “Section 409A” means Section 409A of the Code and any applicable regulations and other
administrative guidance promulgated thereunder.

               (p) “Section 409A Deferred Compensation” means compensation and benefits provided by the
Policy that constitute deferred compensation subject to and not exempted from the requirements of
Section 409A.

               (q) “Separation from Service” means a separation from service within the meaning of Section
409A.

               (r) “Service-Based Equity Award” means an Equity Award granted to an Eligible Employee prior
to any Change in Control, the vesting or earning of which is conditioned solely upon the continued
performance of services by the Eligible Employee for the Company Group.

               (s) “Specified Employee” means a specified employee within the meaning of Section 409A.

               (t) “Successor” means any successor in interest to substantially all of the business and/or
assets of the Company.

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               (u) “Termination” means the termination of an Eligible Employee’s employment by a member of
the Company Group, or a resignation by an Eligible Employee from all employment with the Company
Group.

               (v) “Termination Upon a Change in Control” means the occurrence of any of the following events
during the Change in Control Period:

                    (1) a Termination of the Eligible Employee by the Company for any reason other than Cause; or

                    (2) the Eligible Employee’s resignation for Good Reason from all capacities in which the
Eligible Employee is then rendering service to the Company Group, provided that such resignation
occurs no later than one hundred eighty (180) days following the initial occurrence of the
condition constituting Good Reason.

A Termination Upon a Change in Control will not include any Termination which is (i) for Cause,
(ii) a result of the Eligible Employee’s death or Disability, or (iii) a result of the Eligible
Employee’s voluntary termination of employment other than for Good Reason.

     3. Treatment of Equity Awards Upon a Change in Control

          3.1 Acceleration of Vesting Upon Non-Assumption of Service-Based Equity Awards.
Notwithstanding any provision to the contrary contained in any plan or agreement evidencing a
Service-Based Equity Award, in the event of a Change in Control in which the surviving, continuing,
successor, or purchasing corporation or other business entity or parent thereof, as the case may be
(the “Acquiring Corporation”), does not assume or continue the Company’s rights and obligations
under the then-outstanding Service-Based Equity Award or substitute for such Service-Based Equity
Award a substantially equivalent equity award for the Acquiring Corporation’s stock, then the
vesting and exercisability of such Service-Based Equity Award which is not assumed, continued or
substituted for shall be accelerated in full effective immediately prior to but conditioned upon
the consummation of the Change in Control, provided that the Eligible Employee remains an employee
or other service provider with the Company Group immediately prior to the Change in Control.

          3.2 Acceleration of Vesting of Performance-Based Equity Awards. Notwithstanding any provision
to the contrary contained in any plan or agreement evidencing a Performance-Based Equity Award, in
the event of a Change in Control, the vesting and exercisability of such Performance-Based Equity
Awards shall be accelerated in full immediately prior to but conditioned upon the consummation of
the Change in Control (assuming for the purpose of determining the extent of such acceleration, if
applicable, that one hundred percent (100%) of the target level of performance has been achieved),
provided that the Eligible Employee remains an employee or other service provider with the Company
Group immediately prior to the Change in Control.

The provisions of this Section 3 with respect to all benefits that constitute Section 409A Deferred
Compensation shall be subject to, limited by and construed in accordance with the requirements of
Section 409A and Section 6.2 below.

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     4. Accelerated Vesting of Equity Awards Following A Termination Upon A
Change in Control

          In the event of an Eligible Employee’s Termination Upon a Change in Control, and provided that
the Eligible Employee executes the Separation Agreement and Release applicable to such Eligible
Employee and such Release becomes effective in accordance with its terms within 60 days following
the Eligible Employee’s Termination Upon a Change in Control, and notwithstanding any provision to
the contrary contained in any plan or agreement evidencing an Equity Award granted to the Eligible
Employee, the Eligible Employee’s outstanding Equity Awards which were not otherwise accelerated
pursuant to Section 3 shall be accelerated in full effective as of the date on which the Release
becomes effective so that each Equity Award held by the Eligible Employee shall be immediately
exercisable and fully vested (and, in the case of Restricted Stock Units, performance shares,
performance units and similar stock-based compensation, shall be settled in full), as of the date
on which the Release becomes effective (provided, however, that with respect to Section 409A
Deferred Compensation, the effective date of the vesting and settlement shall be the date which is
sixty (60) days following the Eligible Employee’s Termination Upon a Change in Control).

The provisions of this Section 4 with respect to all benefits that constitute Section 409A Deferred
Compensation shall be subject to, limited by and construed in accordance with the requirements of
Section 409A and Section 6.2 below.

     5. Other Termination 

          In the event of an Eligible Employee’s Termination other than a Termination Upon a Change in
Control, he/she shall not be entitled to any accelerated vesting of Equity Awards or other benefits
pursuant to this Policy.

     6. Certain Federal Tax Considerations

          6.1 Federal Excise Tax Under Section 4999 of the Code.

               (a) Treatment of Excess Parachute Payments. In the event that any payment or benefit received
or to be received by an Eligible Employee pursuant to this Policy or otherwise payable to the
Eligible Employee (collectively, the “Payments”) would subject the Eligible Employee to any excise
tax pursuant to Section 4999 of the Code, or any similar or successor provision (the “Excise Tax”),
due to the characterization of the Payments as “excess parachute payments” under Section 280G of
the Code or any similar or successor provision (“Section 280G”), then, notwithstanding the other
provisions of this Plan, the amount of such Payments will not exceed the amount which produces the
greatest after-tax benefit to the Eligible Employee.

               (b) Determination of Amounts. All computations and determinations called for by this Section
6.1 shall be promptly determined and reported in writing to the Company and the Eligible Employee
by independent public accountants or other independent advisors selected by the Company and
reasonably acceptable to the Eligible Employee (the “Accountants”), and all such computations and
determinations shall be conclusive and binding upon the Eligible Employee and the Company. For the
purposes of such determinations, the

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Accountants may rely on reasonable, good faith interpretations concerning the application of
Sections 280G and 4999 of the Code. The Company and the Eligible Employee shall furnish to the
Accountants such information and documents as the Accountants may reasonably request in order to
make their required determinations. The Company shall bear all fees and expenses charged by the
Accountants in connection with such services.

          6.2 Compliance with Section 409A. Notwithstanding any other provision of the Policy to the
contrary, the provision, time and manner of distribution of all benefits provided by the Policy
that constitute Section 409A Deferred Compensation shall be subject to, limited by and construed in
accordance with the requirements of Section 409A, including the following:

               (a) Separation from Service. Benefits constituting Section 409A Deferred Compensation
otherwise provided pursuant to Sections 3 or 4 upon an Eligible Employee’s Termination shall be
provided only at the time of a Termination of the Eligible Employee’s employment which constitutes
a Separation from Service.

               (b) Six-Month Delay Applicable to Specified Employees. Benefits constituting Section 409A
Deferred Compensation to be provided pursuant to Sections 3 or 4 pursuant to the Separation from
Service of an Eligible Employee who is a Specified Employee shall be paid or provided commencing on
the later of (1) the date that is six (6) months and one (1) day after the date of such Separation
from Service or, if earlier, the date of death of the Eligible Employee (in either case, the
“Delayed Payment Date”), or (2) the date or dates on which such Section 409A Deferred Compensation
would otherwise be provided in accordance with Section 3 or 4, as applicable. All such benefits
that would, but for this Section 6.2(b), be provided prior to the Delayed Payment Date shall be
accumulated and provided on the Delayed Payment Date.

               (c) Equity Awards. The vesting of any Equity Award which constitutes Section 409A Deferred
Compensation and is held by an Eligible Employee who is a Specified Employee shall be accelerated
in accordance with Section 3 or 4 to the extent applicable; provided, however, that the payment in
settlement of any such Equity Award shall occur on the Delayed Payment Date. Equity Awards which
vest and become payable upon a Change in Control in accordance with Section 3 shall not be subject
to this Section.

     7. No Contract of Employment

          Nothing contained in this Policy shall alter the “at-will” employment relationship between the
Eligible Employee and the Company. Accordingly, either the Eligible Employee or the Company may
terminate their employment relationship at any time, with or without cause, and with or without
notice.

     8. Termination and Amendment of Policy

          This Policy may be amended or terminated by the Company at any time, provided that no such
amendment or termination may adversely affect the rights of any Eligible Employee under any then
outstanding Equity Award subject to this Policy without the consent of the affected Eligible
Employee, unless such amendment or termination is deemed by the Company to be necessary or
advisable to comply with applicable law.

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     9. Administration

 
         This Policy shall be administered by the Compensation Committee of the Board (the
“Committee”). The Committee shall have the exclusive discretion and authority to establish rules,
forms and procedures for the administration of the Policy, to construe and interpret the Policy,
and to decide all questions of fact, interpretation, definition, computation or administration
arising in connection with the Policy. The rules, interpretations and other actions of the
Committee shall be binding and conclusive on all persons.

     10. Tax Withholding

          All benefits provided pursuant to this Policy will be subject to withholding of applicable
income and employment taxes.

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Exhibit 10.50

TRIDENT MICROSYSTEMS, INC.

FORM OF STOCK OPTION AGREEMENT

(For US Participant)

     Trident Microsystems, Inc. (the “Company”) has granted to the Participant named in the Notice
of Grant of Stock Option (the “Grant Notice”) to which this Stock Option Agreement (the “Option
Agreement”) is attached an option (the “Option”) to purchase certain shares of Stock upon the terms
and conditions set forth in the Grant Notice and this Option Agreement. The Option has been
granted pursuant to and shall in all respects be subject to the terms and conditions of the Trident
Microsystems, Inc. 2010 Equity Incentive Plan (the “Plan”), as amended to the Date of Grant, the
provisions of which are incorporated herein by reference. By signing the Grant Notice, the
Participant: (a) acknowledges receipt of, and represents that the Participant has read and is
familiar with, the Grant Notice, this Option Agreement, the Plan and a prospectus for the Plan
prepared in connection with the registration with the Securities and Exchange Commission of shares
issuable pursuant to the Option (the “Plan Prospectus”), (b) accepts the Option subject to all of
the terms and conditions of the Grant Notice, this Option Agreement and the Plan and (c) agrees to
accept as binding, conclusive and final all decisions or interpretations of the Committee upon any
questions arising under the Grant Notice, this Option Agreement or the Plan.

     1. 
Definitions and Construction.

          1.1 Definitions. Unless otherwise defined herein, capitalized terms shall have the meanings
assigned to such terms in the Grant Notice or the Plan.

          1.2 Construction. Captions and titles contained herein are for convenience only and shall not
affect the meaning or interpretation of any provision of this Option Agreement. Except when
otherwise indicated by the context, the singular shall include the plural and the plural shall
include the singular. Use of the term “or” is not intended to be exclusive, unless the context
clearly requires otherwise.

     2. Tax Consequences.

          2.1 Tax Status of Option. This Option is intended to have the tax status designated in the
Grant Notice.

               (a) Incentive Stock Option. If the Grant Notice so designates, this Option is intended to be
an Incentive Stock Option within the meaning of Section 422(b) of the Code, but the Company does
not represent or warrant that this Option qualifies as such. The Participant should consult with
the Participant’s own tax advisor regarding the tax effects of this Option and the requirements
necessary to obtain favorable income tax treatment under Section 422 of the Code, including, but
not limited to, holding period requirements. (NOTE TO PARTICIPANT: If the Option is exercised
more than three (3) months after the date on which you cease to be an Employee (other than by
reason of your death or permanent and total disability as defined in Section 22(e)(3) of the Code),
the Option will be treated as a Nonstatutory Stock Option and not as an Incentive Stock Option to
the extent required by Section 422 of the Code.)

               (b) Nonstatutory Stock Option. If the Grant Notice so designates, this Option is intended to
be a Nonstatutory Stock Option and shall not be treated as an Incentive Stock Option within the
meaning of Section 422(b) of the Code.

          2.2 ISO Fair Market Value Limitation. If the Grant Notice designates this Option as an
Incentive Stock Option, then to the extent that the Option (together with all Incentive Stock
Options granted to the Participant under all stock option plans of the Participating Company Group,
including the Plan) becomes exercisable for the first time during any calendar year for shares
having a Fair Market Value greater than One Hundred Thousand Dollars ($100,000), the portion of
such options which exceeds such amount will be treated as Nonstatutory Stock Options. For purposes
of this Section 2.2, options designated as Incentive Stock Options are taken into account in the
order in which they were granted, and the Fair Market Value of stock is determined as of the time
the option with respect to

 

 

such stock is granted. If the Code is amended to provide for a different limitation from that
set forth in this Section 2.2, such different limitation shall be deemed incorporated herein
effective as of the date required or permitted by such amendment to the Code. If the Option is
treated as an Incentive Stock Option in part and as a Nonstatutory Stock Option in part by reason
of the limitation set forth in this Section 2.2, the Participant may designate which portion of
such Option the Participant is exercising. In the absence of such designation, the Participant
shall be deemed to have exercised the Incentive Stock Option portion of the Option first. Separate
certificates representing each such portion shall be issued upon the exercise of the Option. (NOTE
TO PARTICIPANT: If the aggregate Exercise Price of the Option (that is, the Exercise Price
multiplied by the Number of Option Shares) plus the aggregate exercise price of any other Incentive
Stock Options you hold (whether granted pursuant to the Plan or any other stock option plan of the
Participating Company Group) is greater than $100,000, you should contact the Chief Financial
Officer of the Company to ascertain whether the entire Option qualifies as an Incentive Stock
Option.)

     3. Administration.

     All questions of interpretation concerning the Grant Notice, this Option Agreement, the Plan
or any other form of agreement or other document employed by the Company in the administration of
the Plan or the Option shall be determined by the Committee. All such determinations by the
Committee shall be final, binding and conclusive upon all persons having an interest in the Option,
unless fraudulent or made in bad faith. Any and all actions, decisions and determinations taken or
made by the Committee in the exercise of its discretion pursuant to the Plan or the Option or other
agreement thereunder (other than determining questions of interpretation pursuant to the preceding
sentence) shall be final, binding and conclusive upon all persons having an interest in the Option.
Any Officer shall have the authority to act on behalf of the Company with respect to any matter,
right, obligation, or election which is the responsibility of or which is allocated to the Company
herein, provided the Officer has apparent authority with respect to such matter, right, obligation,
or election.

     4. Exercise of the Option.

          4.1 Right to Exercise. Except as otherwise provided herein, the Option shall be exercisable
on and after the Initial Vesting Date and prior to the termination of the Option (as provided in
Section 5) in an amount not to exceed the number of Vested Shares less the number of shares
previously acquired upon exercise of the Option. In no event shall the Option be exercisable for
more shares than the Number of Option Shares, as adjusted pursuant to Section 9.

          4.2 Method of Exercise. Exercise of the Option shall be by means of electronic or written
notice (the “Exercise Notice”) in a form authorized by the Company. An electronic Exercise Notice
must be digitally signed or authenticated by the Participant in such manner as required by the
notice and transmitted to the Company or an authorized representative of the Company (including a
third-party administrator designated by the Company). In the event that the Participant is not
authorized or is unable to provide an electronic Exercise Notice, the Option shall be exercised by
a written Exercise Notice addressed to the Company, which shall be signed by the Participant and
delivered in person, by certified or registered mail, return receipt requested, by confirmed
facsimile transmission, or by such other means as the Company may permit, to the Company, or an
authorized representative of the Company (including a third-party administrator designated by the
Company). Each Exercise Notice, whether electronic or written, must state the Participant’s
election to exercise the Option, the number of whole shares of Stock for which the Option is being
exercised and such other representations and agreements as to the Participant’s investment intent
with respect to such shares as may be required pursuant to the provisions of this Option Agreement.
Further, each Exercise Notice must be received by the Company prior to the termination of the
Option as set forth in Section 5 and must be accompanied by full payment of the aggregate Exercise
Price for the number of shares of Stock being purchased. The Option shall be deemed to be
exercised upon receipt by the Company of such electronic or written Exercise Notice and the
aggregate Exercise Price.

          4.3 Payment of Exercise Price.

               (a) Forms of Consideration Authorized. Except as otherwise provided below, payment of the
aggregate Exercise Price for the number of shares of Stock for which the Option is being exercised
shall be made (i) in cash, by check or in cash equivalent; (ii) if permitted by the Company and
subject to the limitations contained in

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Section 4.3(b), by means of (1) a Cashless Exercise, (2) a Net-Exercise, or (3) a Stock Tender
Exercise; or (iii) by any combination of the foregoing.

               (b) Limitations on Forms of Consideration. The Company reserves, at any and all times, the
right, in the Company’s sole and absolute discretion, to establish, decline to approve or terminate
any program or procedure providing for payment of the Exercise Price through any of the means
described below, including with respect to the Participant notwithstanding that such program or
procedures may be available to others.

               (i) Cashless Exercise. A “Cashless Exercise” means the delivery of a properly executed
Exercise Notice together with irrevocable instructions to a broker in a form acceptable to the
Company providing for the assignment to the Company of the proceeds of a sale or loan with respect
to shares of Stock acquired upon the exercise of the Option in an amount not less than the
aggregate Exercise Price for such shares (including, without limitation, through an exercise
complying with the provisions of Regulation T as promulgated from time to time by the Board of
Governors of the Federal Reserve System).

               (ii) Net-Exercise. A “Net-Exercise” means the delivery of a properly executed Exercise Notice
electing a procedure pursuant to which (1) the Company will reduce the number of shares otherwise
issuable to the Participant upon the exercise of the Option by the largest whole number of shares
having a Fair Market Value that does not exceed the aggregate Exercise Price for the shares with
respect to which the Option is exercised, and (2) the Participant shall pay to the Company in cash
the remaining balance of such aggregate Exercise Price not satisfied by such reduction in the
number of whole shares to be issued. Following a Net-Exercise, the number of shares remaining
subject to the Option, if any, shall be reduced by the sum of (1) the net number of shares issued
to the Participant upon such exercise, and (2) the number of shares deducted by the Company for
payment of the aggregate Exercise Price.

               (iii) Stock Tender Exercise. A “Stock Tender Exercise” means the delivery of a properly
executed Exercise Notice accompanied by (1) the Participant’s tender to the Company, or attestation
to the ownership, in a form acceptable to the Company of whole shares of Stock having a Fair Market
Value that does not exceed the aggregate Exercise Price for the shares with respect to which the
Option is exercised, and (2) the Participant’s payment to the Company in cash of the remaining
balance of such aggregate Exercise Price not satisfied by such shares’ Fair Market Value. A Stock
Tender Exercise shall not be permitted if it would constitute a violation of the provisions of any
law, regulation or agreement restricting the redemption of the Company’s stock. If required by the
Company, the Option may not be exercised by tender to the Company, or attestation to the ownership,
of shares of Stock unless such shares either have been owned by the Participant for a period of
time required by the Company (and not used for another option exercise by attestation during such
period) or were not acquired, directly or indirectly, from the Company.

          4.4 Tax Withholding.

               (a) In General. At the time the Option is exercised, in whole or in part, or at any time
thereafter as requested by a Participating Company, the Participant hereby authorizes withholding
from payroll and any other amounts payable to the Participant, and otherwise agrees to make
adequate provision for (including by means of a Cashless Exercise to the extent permitted by the
Company), any sums required to satisfy the federal, state, local and foreign tax (including any
social insurance) withholding obligations of the Participating Company Group, if any, which arise
in connection with the Option. The Company shall have no obligation to deliver shares of Stock
until the tax withholding obligations of the Participating Company Group have been satisfied by the
Participant.

               (b) Withholding in Shares. The Company shall have the right, but not the obligation, to
require the Participant to satisfy all or any portion of a Participating Company’s tax withholding
obligations upon exercise of the Option by deducting from the shares of Stock otherwise issuable to
the Participant upon such exercise a number of whole shares having a fair market value, as
determined by the Company as of the date of exercise, not in excess of the amount of such tax
withholding obligations determined by the applicable minimum statutory withholding rates.

          4.5 Beneficial Ownership of Shares; Certificate Registration. The Participant hereby
authorizes the Company, in its sole discretion, to deposit for the benefit of the Participant with
any broker with which the

3

 

Participant has an account relationship of which the Company has notice any or all shares
acquired by the Participant pursuant to the exercise of the Option. Except as provided by the
preceding sentence, a certificate for the shares as to which the Option is exercised shall be
registered in the name of the Participant, or, if applicable, in the names of the heirs of the
Participant.

          4.6 Restrictions on Grant of the Option and Issuance of Shares. The grant of the Option and
the issuance of shares of Stock upon exercise of the Option shall be subject to compliance with all
applicable requirements of federal, state or foreign law with respect to such securities. The
Option may not be exercised if the issuance of shares of Stock upon exercise would constitute a
violation of any applicable federal, state or foreign securities laws or other law or regulations
or the requirements of any stock exchange or market system upon which the Stock may then be listed.
In addition, the Option may not be exercised unless (i) a registration statement under the
Securities Act shall at the time of exercise of the Option be in effect with respect to the shares
issuable upon exercise of the Option or (ii) in the opinion of legal counsel to the Company, the
shares issuable upon exercise of the Option may be issued in accordance with the terms of an
applicable exemption from the registration requirements of the Securities Act. THE PARTICIPANT IS
CAUTIONED THAT THE OPTION MAY NOT BE EXERCISED UNLESS THE FOREGOING CONDITIONS ARE SATISFIED.
ACCORDINGLY, THE PARTICIPANT MAY NOT BE ABLE TO EXERCISE THE OPTION WHEN DESIRED EVEN THOUGH THE
OPTION IS VESTED. The inability of the Company to obtain from any regulatory body having
jurisdiction the authority, if any, deemed by the Company’s legal counsel to be necessary to the
lawful issuance and sale of any shares subject to the Option shall relieve the Company of any
liability in respect of the failure to issue or sell such shares as to which such requisite
authority shall not have been obtained. As a condition to the exercise of the Option, the Company
may require the Participant to satisfy any qualifications that may be necessary or appropriate, to
evidence compliance with any applicable law or regulation and to make any representation or
warranty with respect thereto as may be requested by the Company.

          4.7 Fractional Shares. The Company shall not be required to issue fractional shares upon the
exercise of the Option.

     5. Nontransferability of the Option.

     During the lifetime of the Participant, the Option shall be exercisable only by the
Participant or the Participant’s guardian or legal representative. The Option shall not be subject
in any manner to anticipation, alienation, sale, exchange, transfer, assignment, pledge,
encumbrance, or garnishment by creditors of the Participant or the Participant’s beneficiary,
except transfer by will or by the laws of descent and distribution. Following the death of the
Participant, the Option, to the extent provided in Section 7, may be exercised by the Participant’s
legal representative or by any person empowered to do so under the deceased Participant’s will or
under the then applicable laws of descent and distribution.

     6. Termination of the Option.

     The Option shall terminate and may no longer be exercised after the first to occur of (a) the
close of business on the Option Expiration Date, (b) the close of business on the last date for
exercising the Option following termination of the Participant’s Service as described in Section 7,
or (c) a Change in Control to the extent provided in Section 8.

     7. Effect of Termination of Service.

          7.1 Option Exercisability. Except as provided below during the period commencing upon the
consummation of a Change in Control and ending on the date occurring eighteen (18) months
thereafter, the Option shall terminate immediately upon the Participant’s termination of Service to
the extent that it is then unvested and shall be exercisable after the Participant’s termination of
Service to the extent it is then vested only during the applicable time period as determined below
and thereafter shall terminate. During the period commencing upon the consummation of a Change in
Control and ending on the date occurring eighteen (18) months thereafter, the unvested portion of
the Option shall not terminate if the Participant’s Service is terminated without Cause or the
Participant terminates his or her Service for Good Reason (as defined below). To the extent that
the preceding sentence applies, the unvested portion of the Option shall terminate, if at all, when
the period for executing (and not revoking) the separation agreement and release described in
Section 8 expires.

4

 

               (a) Disability. If the Participant’s Service terminates because of the Disability of the
Participant, the Option, to the extent unexercised and exercisable for Vested Shares on the date on
which the Participant’s Service terminated, may be exercised by the Participant (or the
Participant’s guardian or legal representative) at any time prior to the expiration of twelve (12)
months after the date on which the Participant’s Service terminated, but in any event no later than
the Option Expiration Date.

               (b) Death. If the Participant’s Service terminates because of the death of the Participant,
the Option, to the extent unexercised and exercisable for Vested Shares on the date on which the
Participant’s Service terminated, may be exercised by the Participant’s legal representative or
other person who acquired the right to exercise the Option by reason of the Participant’s death at
any time prior to the expiration of twelve (12) months after the date on which the Participant’s
Service terminated, but in any event no later than the Option Expiration Date. The Participant’s
Service shall be deemed to have terminated on account of death if the Participant dies within three
(3) months after the Participant’s termination of Service.

               (c) Termination for Cause. Notwithstanding any other provision of this Option Agreement to
the contrary, if the Participant’s Service is terminated for Cause or if, following the
Participant’s termination of Service and during any period in which the Option otherwise would
remain exercisable, the Participant engages in any act that would constitute Cause, the Option
shall terminate in its entirety and cease to be exercisable immediately upon such termination of
Service or act.

               (d) Other Termination of Service. If the Participant’s Service terminates for any reason,
except Disability, death or Cause, the Option, to the extent unexercised and exercisable for Vested
Shares by the Participant on the date on which the Participant’s Service terminated, may be
exercised by the Participant at any time prior to the expiration of three (3) months after the date
on which the Participant’s Service terminated, but in any event no later than the Option Expiration
Date.

          7.2 Extension if Exercise Prevented by Law. Notwithstanding the foregoing, other than
termination of the Participant’s Service for Cause, if the exercise of the Option within the
applicable time periods set forth in Section 7.1 is prevented by the provisions of Section 4.6, the
Option shall remain exercisable until the later of (a) thirty (30) days after the date such
exercise first would no longer be prevented by such provisions, or (b) the end of the applicable
time period under Section 7.1, but in any event no later than the Option Expiration Date.

     8. Effect of Change in Control.

     In the event of a Change in Control, except to the extent that the Committee determines to
cash out the Option in accordance with Section 13.1(c) of the Plan, the surviving, continuing,
successor or purchasing corporation or other business entity or parent thereof, as the case may be
(the “Acquiror”), may, without the consent of the Participant, assume or continue in full force and
effect the Company’s rights and obligations under all or any portion of the Option or substitute
for all or any portion of the Option a substantially equivalent option for the Acquiror’s stock.
For purposes of this Section, the Option or any portion thereof shall be deemed assumed if,
following the Change in Control, the Option confers the right to receive, subject to the terms and
conditions of the Plan and this Option Agreement, for each share of Stock subject to such portion
of the Option immediately prior to the Change in Control, the consideration (whether stock, cash,
other securities or property or a combination thereof) to which a holder of a share of Stock on the
effective date of the Change in Control was entitled (and if holders were offered a choice of
consideration, the type of consideration chosen by the holders of a majority of the outstanding
shares of Stock); provided, however, that if such consideration is not solely common stock of the
Acquiror, the Committee may, with the consent of the Acquiror, provide for the consideration to be
received upon the exercise of the Option, for each share of Stock subject to the Option, to consist
solely of common stock of the Acquiror equal in Fair Market Value to the per share consideration
received by holders of Stock pursuant to the Change in Control. Notwithstanding the foregoing, in
the event of a Change in Control in which the Acquiror, does not assume or continue the Company’s
rights and obligations under any then outstanding Option subject to time-based vesting or
substitute for such Option a substantially equivalent option for the Acquiror’s stock, then the
vesting and exercisability of such Option which is not assumed, continued or substituted for shall
be accelerated in full effective immediately prior to but conditioned upon the consummation of the
Change in Control, provided the Participant is providing Services immediately prior to the Change
in Control. In addition, and notwithstanding anything in this Agreement to the contrary, to the
extent the Option is subject to performance based vesting, the vesting and

5

 

exercisability of such an Option shall be accelerated in full immediately prior to but
conditioned upon the consummation of the Change in Control (assuming for purposes of determining
the extent of such acceleration that one hundred percent (100%) of the target level of performance
was achieved), provided that Participant is providing Services immediately prior to the Change in
Control. The Option shall terminate and cease to be outstanding effective as of the time of
consummation of the Change in Control to the extent that the Option is neither assumed or continued
by the Acquiror in connection with the Change in Control nor exercised as of the time of the Change
in Control.

          To the extent that an Option is assumed, continued or substituted for by the Acquiror, such
Option shall be subject to accelerated exercisability and vesting if, during the period commencing
upon the consummation of the Change in Control and ending on the date occurring eighteen (18)
months thereafter the Participant’s Service is terminated without Cause or the Participant
terminates his or her Service for “Good Reason.” This accelerated exercisability and vesting shall
only be applicable if the Participant executes a separation agreement and release and such
agreement and release becomes effective in accordance with its terms no later than sixty (60) days
following such termination, in which event the accelerated exercisability and vesting shall be
effective on the date the separation agreement and release becomes effective.

          For purposes of this Agreement, “Good Reason” shall be defined as the occurrence of any of the
following conditions without the Participant’s written consent, which condition(s) remain(s) in
effect thirty (30) days after written notice to the Company from the Participant of such
condition(s) and which notice must have been given within ninety (90) days following the initial
occurrence of such condition(s):

          (i) a material diminution in the Participant’s authority, duties or responsibilities, causing
the Participant’s position to be of materially lesser rank or responsibility as measured against
the Participant’s authority, duties or responsibilities immediately prior to (A) such diminution,
or (B) a Change in Control;

          (ii) a material decrease in the Participant’s “Base Salary Rate” or “Annual Target Bonus Rate”
(subject to applicable performance requirements with respect to the actual amount of the Annual
Target Bonus Rate earned and paid), other than any such material decrease that occurs in connection
with a decrease that is imposed on all employees of the Participating Company Group (which shall
include the Acquiror) at the time of such decrease; or

          (iii) the relocation of the Participant’s work place to a location that increases the regular
commute distance between the Participant’s residence and work place by more than thirty (30) miles
(one-way).

In the event that a Participant continues his/her employment for a period of one hundred eighty
(180) days or more following the occurrence of any condition constituting Good Reason, such
condition shall no longer constitute Good Reason.

          In addition, for purposes of this Agreement, “Annual Target Bonus Rate” means an amount equal
to the aggregate of all annual incentive bonuses that would be earned by the Participant at the
targeted annual rate (assuming attainment of 100% of all applicable performance goals) under the
terms of the programs, plans or agreements providing for such bonuses in which the Participant was
participating for the fiscal year in which the Participant’s termination occurs. For this purpose,
annual incentive bonuses shall not include signing bonuses or other nonrecurring cash incentive
awards. Further, for this purpose, “Base Salary Rate” means the greater of the Participant’s (i)
monthly base salary rate in effect immediately prior to his/her Termination, or (ii) monthly base
salary rate in effect immediately prior to a Change in Control, in either case without giving
effect to any reduction in the Participant’s base salary rate that constitutes a Good Reason. For
this purpose, base salary does not include any bonuses, commissions, fringe benefits, car
allowances, other irregular payments or any other compensation except base salary.

          Notwithstanding anything in the Plan to the contrary, “Change in Control” shall mean for
purposes of this Agreement the occurrence of any of the following:

          (i) any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act), other
than a trustee or other fiduciary holding securities of the Company under an employee benefit plan
of the Company, acquires (or has acquired during the 12-month period ending on the date of the most
recent acquisition by such

6

 

person) “beneficial ownership” (as defined in Rule 13d-3 promulgated under the Exchange Act),
directly or indirectly, of stock of the Company representing more than percent (50%) of the total
combined voting power of the Company’s then-outstanding stock entitled to vote generally in the
election of directors;

          (ii) the Company is party to a merger or consolidation which results in the holders of the
voting stock of the Company outstanding immediately prior thereto failing to retain immediately
after such merger or consolidation direct or indirect beneficial ownership of more than fifty
percent (50%) of the total combined voting power of the stock entitled to vote generally in the
election of directors of the Company or the surviving entity outstanding immediately after such
merger or consolidation;

          (iii) the sale or disposition of all or substantially all of the Company’s assets or
consummation of any transaction having similar effect (other than a sale or disposition to one or
more subsidiaries of the Company); or

          (iv) a change in the composition of the Company’s Board within any consecutive 12-month
period as a result of which fewer than a majority of the directors are Incumbent Directors;

provided, however, that a Change in Control shall be deemed not to include a transaction
described in subsections (i) or (ii) above in which a majority of the members of the board of
directors of the Acquiror, immediately after such transaction is comprised of directors who were
members of the Board immediately prior to consummation of such transaction.

     9. Adjustments for Changes in Capital Structure.

     Subject to any required action by the stockholders of the Company and the requirements of
Sections 409A and 424 of the Code to the extent applicable, in the event of any change in the Stock
effected without receipt of consideration by the Company, whether through merger, consolidation,
reorganization, reincorporation, recapitalization, reclassification, stock dividend, stock split,
reverse stock split, split-up, split-off, spin-off, combination of shares, exchange of shares, or
similar change in the capital structure of the Company, or in the event of payment of a dividend or
distribution to the stockholders of the Company in a form other than Stock (excepting normal cash
dividends) that has a material effect on the Fair Market Value of shares of Stock, appropriate and
proportionate adjustments shall be made in the number, Exercise Price and kind of shares subject to
the Option, in order to prevent dilution or enlargement of the Participant’s rights under the
Option. For purposes of the foregoing, conversion of any convertible securities of the Company
shall not be treated as “effected without receipt of consideration by the Company.” Any fractional
share resulting from an adjustment pursuant to this Section shall be rounded down to the nearest
whole number and the Exercise Price shall be rounded up to the nearest whole cent. In no event may
the Exercise Price be decreased to an amount less than the par value, if any, of the stock subject
to the Option. Such adjustments shall be determined by the Committee, and its determination shall
be final, binding and conclusive.

     10. Rights as a Stockholder, Director, Employee or Consultant.

     The Participant shall have no rights as a stockholder with respect to any shares covered by
the Option until the date of the issuance of the shares for which the Option has been exercised (as
evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer
agent of the Company). No adjustment shall be made for dividends, distributions or other rights
for which the record date is prior to the date the shares are issued, except as provided in Section
9. If the Participant is an Employee, the Participant understands and acknowledges that, except as
otherwise provided in a separate, written employment agreement between a Participating Company and
the Participant, the Participant’s employment is “at will” and is for no specified term. Nothing
in this Option Agreement shall confer upon the Participant any right to continue in the Service of
a Participating Company or interfere in any way with any right of the Participating Company Group
to terminate the Participant’s Service as a Director, an Employee or Consultant, as the case may
be, at any time.

     11. Notice of Sales Upon Disqualifying Disposition.

7

 

     The Participant shall dispose of the shares acquired pursuant to the Option only in accordance
with the provisions of this Option Agreement. In addition, if the Grant Notice designates this
Option as an Incentive Stock Option, the Participant shall (a) promptly notify the Chief Financial
Officer of the Company if the Participant disposes of any of the shares acquired pursuant to the
Option within one (1) year after the date the Participant exercises all or part of the Option or
within two (2) years after the Date of Grant and (b) provide the Company with a description of the
circumstances of such disposition. Until such time as the Participant disposes of such shares in a
manner consistent with the provisions of this Option Agreement, unless otherwise expressly
authorized by the Company, the Participant shall hold all shares acquired pursuant to the Option in
the Participant’s name (and not in the name of any nominee) for the one-year period immediately
after the exercise of the Option and the two-year period immediately after Date of Grant. At any
time during the one-year or two-year periods set forth above, the Company may place a legend on any
certificate representing shares acquired pursuant to the Option requesting the transfer agent for
the Company’s stock to notify the Company of any such transfers. The obligation of the Participant
to notify the Company of any such transfer shall continue notwithstanding that a legend has been
placed on the certificate pursuant to the preceding sentence.

     12. Legends.

     The Company may at any time place legends referencing any applicable federal, state or foreign
securities law restrictions on all certificates representing shares of stock subject to the
provisions of this Option Agreement. The Participant shall, at the request of the Company,
promptly present to the Company any and all certificates representing shares acquired pursuant to
the Option in the possession of the Participant in order to carry out the provisions of this
Section. Unless otherwise specified by the Company, legends placed on such certificates may
include, but shall not be limited to, the following:

“THE SHARES EVIDENCED BY THIS CERTIFICATE WERE ISSUED BY THE CORPORATION TO THE
REGISTERED HOLDER UPON EXERCISE OF AN INCENTIVE STOCK OPTION AS DEFINED IN SECTION
422 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (“ISO”). IN ORDER TO OBTAIN
THE PREFERENTIAL TAX TREATMENT AFFORDED TO ISOs, THE SHARES SHOULD NOT BE
TRANSFERRED PRIOR TO [INSERT DISQUALIFYING DISPOSITION DATE HERE]. SHOULD THE
REGISTERED HOLDER ELECT TO TRANSFER ANY OF THE SHARES PRIOR TO THIS DATE AND FOREGO
ISO TAX TREATMENT, THE TRANSFER AGENT FOR THE SHARES SHALL NOTIFY THE CORPORATION
IMMEDIATELY. THE REGISTERED HOLDER SHALL HOLD ALL SHARES PURCHASED UNDER THE
INCENTIVE STOCK OPTION IN THE REGISTERED HOLDER’S NAME (AND NOT IN THE NAME OF ANY
NOMINEE) PRIOR TO THIS DATE OR UNTIL TRANSFERRED AS DESCRIBED ABOVE.”

     13. Miscellaneous Provisions.

          13.1 Termination or Amendment. The Committee may terminate or amend the Plan or the Option at
any time; provided, however, that except as provided in Section 8 in connection with a Change in
Control, no such termination or amendment may adversely affect the Option or any unexercised
portion hereof without the consent of the Participant unless such termination or amendment is
necessary to comply with any applicable law or government regulation. No amendment or addition to
this Option Agreement shall be effective unless in writing.

          13.2 Further Instruments. The parties hereto agree to execute such further instruments and to
take such further action as may reasonably be necessary to carry out the intent of this Option
Agreement.

          13.3 Binding Effect. This Option Agreement shall inure to the benefit of the successors and
assigns of the Company and, subject to the restrictions on transfer set forth herein, be binding
upon the Participant and the Participant’s heirs, executors, administrators, successors and
assigns.

          13.4 Delivery of Documents and Notices. Any document relating to participation in the Plan or
any notice required or permitted hereunder shall be given in writing and shall be deemed
effectively given (except to the extent that this Option Agreement provides for effectiveness only
upon actual receipt of such notice) upon personal delivery, electronic delivery at the e-mail
address, if any, provided for the Participant by a Participating Company,

8

 

or upon deposit in the U.S. Post Office or foreign postal service, by registered or certified
mail, or with a nationally recognized overnight courier service, with postage and fees prepaid,
addressed to the other party at the address of such party set forth in the Grant Notice or at such
other address as such party may designate in writing from time to time to the other party.

          (a) Description of Electronic Delivery. The Plan documents, which may include but do not
necessarily include: the Plan, the Grant Notice, this Option Agreement, the Plan Prospectus, and
any reports of the Company provided generally to the Company’s stockholders, may be delivered to
the Participant electronically. In addition, if permitted by the Company, the Participant may
deliver electronically the Grant Notice and Exercise Notice called for by Section 4.2 to the
Company or to such third party involved in administering the Plan as the Company may designate from
time to time. Such means of electronic delivery may include but do not necessarily include the
delivery of a link to a Company intranet or the Internet site of a third party involved in
administering the Plan, the delivery of the document via e-mail or such other means of electronic
delivery specified by the Company.

          (b) Consent to Electronic Delivery. The Participant acknowledges that the Participant has
read Section 13.4(a) of this Option Agreement and consents to the electronic delivery of the Plan
documents and, if permitted by the Company, the delivery of the Grant Notice and Exercise Notice,
as described in Section 13.4(a). The Participant acknowledges that he or she may receive from the
Company a paper copy of any documents delivered electronically at no cost to the Participant by
contacting the Company by telephone or in writing. The Participant further acknowledges that the
Participant will be provided with a paper copy of any documents if the attempted electronic
delivery of such documents fails. Similarly, the Participant understands that the Participant must
provide the Company or any designated third party administrator with a paper copy of any documents
if the attempted electronic delivery of such documents fails. The Participant may revoke his or
her consent to the electronic delivery of documents described in Section 13.4(a) or may change the
electronic mail address to which such documents are to be delivered (if Participant has provided an
electronic mail address) at any time by notifying the Company of such revoked consent or revised
e-mail address by telephone, postal service or electronic mail. Finally, the Participant
understands that he or she is not required to consent to electronic delivery of documents described
in Section 13.4(a).

          13.5 Integrated Agreement. The Grant Notice, this Option Agreement and the Plan, together
with the Superseding Agreement, if any, shall constitute the entire understanding and agreement of
the Participant and the Participating Company Group with respect to the subject matter contained
herein and supersede any prior agreements, understandings, restrictions, representations, or
warranties among the Participant and the Participating Company Group with respect to such subject
matter. To the extent contemplated herein, the provisions of the Grant Notice, the Option
Agreement and the Plan shall survive any exercise of the Option and shall remain in full force and
effect.

          13.6 Applicable Law. This Option Agreement shall be governed by the laws of the State of
California as such laws are applied to agreements between California residents entered into and to
be performed entirely within the State of California.

          13.7 Counterparts. The Grant Notice may be executed in counterparts, each of which shall be
deemed an original, but all of which together shall constitute one and the same instrument.

9

 

TRIDENT MICROSYSTEMS, INC.

FORM OF STOCK OPTION AGREEMENT

(For Non-US Participant)

     Trident Microsystems, Inc. (the “Company”) has granted to the Participant named in the Notice
of Grant of Stock Option (the “Grant Notice”) to which this Stock Option Agreement (the “Option
Agreement”) is attached an option (the “Option”) to purchase certain shares of Stock upon the terms
and conditions set forth in the Grant Notice and this Option Agreement. The Option has been
granted pursuant to and shall in all respects be subject to the terms and conditions of the Trident
Microsystems, Inc. 2010 Equity Incentive Plan (the “Plan”), as amended to the Date of Grant, the
provisions of which are incorporated herein by reference. By signing the Grant Notice, the
Participant: (a) acknowledges receipt of, and represents that the Participant has read and is
familiar with, the Grant Notice, this Option Agreement, the Plan and a prospectus for the Plan
prepared in connection with the registration with the Securities and Exchange Commission of shares
issuable pursuant to the Option (the “Plan Prospectus”), (b) accepts the Option subject to all of
the terms and conditions of the Grant Notice, this Option Agreement and the Plan and (c) agrees to
accept as binding, conclusive and final all decisions or interpretations of the Committee upon any
questions arising under the Grant Notice, this Option Agreement or the Plan.

     1. Definitions and Construction.

          1.1 Definitions. Unless otherwise defined herein, capitalized terms shall have the meanings
assigned to such terms in the Grant Notice or the Plan.

          1.2 Construction. Captions and titles contained herein are for convenience only and shall not
affect the meaning or interpretation of any provision of this Option Agreement. Except when
otherwise indicated by the context, the singular shall include the plural and the plural shall
include the singular. Use of the term “or” is not intended to be exclusive, unless the context
clearly requires otherwise.

     2. Certain Conditions of the Option.

          2.1 Compliance with Local Law. The Participant agrees that the Participant will not acquire
shares pursuant to the Option or transfer, assign, sell or otherwise deal with such shares except
in compliance with Local Law.

          2.2 Employment Conditions. In accepting the Option, the Participant acknowledges that:

               (a) Any notice period mandated under Local Law shall not be treated as Service for the purpose
of determining the vesting of the Option; and the Participant’s right to exercise the Option after
termination of Service, if any, will be measured by the date of termination of the Participant’s
active Service and will not be extended by any notice period mandated under Local Law. Subject to
the foregoing and the provisions of the Plan, the Company, in its sole discretion, shall determine
whether the Participant’s Service has terminated and the effective date of such termination.

               (b) The vesting of the Option shall cease upon, and no shares shall become Vested Shares
following, the Participant’s termination of Service for any reason except as may be explicitly
provided by the Plan or this Agreement.

               (c) The Plan is established voluntarily by the Company. It is discretionary in nature and it
may be modified, amended, suspended or terminated by the Company at any time, unless otherwise
provided in the Plan and this Option Agreement.

               (d) The grant of the Option is voluntary and occasional and does not create any contractual or
other right to receive future grants of Options, or benefits in lieu of Options, even if Options
have been granted repeatedly in the past.

 

 

               (e) All decisions with respect to future Option grants, if any, will be at the sole discretion
of the Company.

               (f) The Participant’s participation in the Plan shall not create a right to further Service
with any Participating Company and shall not interfere with the ability of any Participating
Company to terminate the Participant’s Service at any time, with or without cause.

               (g) The Participant is voluntarily participating in the Plan.

               (h) The Option is an extraordinary item that does not constitute compensation of any kind for
Service of any kind rendered to any Participating Company, and which is outside the scope of the
Participant’s employment contract, if any.

               (i) The Option is not part of normal or expected compensation or salary for any purpose,
including, but not limited to, calculating any severance, resignation, termination, redundancy,
end-of-service payments, bonuses, long-service awards, pension or retirement benefits or similar
payments.

               (j) In the event that the Participant is not an employee of the Company, the Option grant will
not be interpreted to form an employment contract or relationship with the Company; and furthermore
the Option grant will not be interpreted to form an employment contract with any other
Participating Company.

               (k) The future value of the underlying shares is unknown and cannot be predicted with
certainty. If the underlying shares do not increase in value, the Option will have no value. If
the Participant exercises the Option and obtains shares, the value of those shares acquired upon
exercise may increase or decrease in value, even below the Exercise Price.

               (l) No claim or entitlement to compensation or damages arises from termination of the Option
or diminution in value of the Option or shares purchased through exercise of the Option resulting
from termination of the Participant’s Service (for any reason whether or not in breach of Local
Law) and the Participant irrevocably releases the Company and each other Participating Company from
any such claim that may arise. If, notwithstanding the foregoing, any such claim is found by a
court of competent jurisdiction to have arisen then, by signing this Option Agreement, the
Participant shall be deemed irrevocably to have waived the Participant’s entitlement to pursue such
a claim.

          2.3 Data Privacy Consent.

               (a) The Participant hereby explicitly and unambiguously consents to the collection, use and
transfer, in electronic or other form, of the Participant’s personal data as described in this
document by and among the members of the Participating Company Group for the exclusive purpose of
implementing, administering and managing the Participant’s participation in the Plan.

               (b) The Participant understands that the Participating Company Group holds certain personal
information about the Participant, including, but not limited to, the Participant’s name, home
address and telephone number, date of birth, social insurance number or other identification
number, salary, nationality, job title, any shares or directorships held in the Company, details of
all Options or any other entitlement to shares awarded, canceled, exercised, vested, unvested or
outstanding in the Participant’s favor, for the purpose of implementing, administering and managing
the Plan (“Data”). The Participant understands that Data may be transferred to any third parties
assisting in the implementation, administration and management of the Plan, that these recipients
may be located in the Participant’s country or elsewhere, and that the recipient’s country may have
different data privacy laws and protections than the Participant’s country. The Participant
understands that he or she may request a list with the names and addresses of any potential
recipients of the Data by contacting the Participant’s local human resources representative. The
Participant authorizes the recipients to receive, possess, use, retain and transfer the Data, in
electronic or other form, for the purposes of implementing, administering and managing the
Participant’s participation in the Plan, including any requisite transfer of such Data as may be
required to a broker or other third party with whom the Participant may elect to deposit any shares
acquired upon exercise of the Option. The

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Participant understands that Data will be held only as long as is necessary to implement,
administer and manage the Participant’s participation in the Plan. The Participant understands
that he or she may, at any time, view Data, request additional information about the storage and
processing of Data, require any necessary amendments to Data or refuse or withdraw the consents
herein, in any case without cost, by contacting in writing the Participant’s local human resources
representative. The Participant understands, however, that refusing or withdrawing the
Participant’s consent may affect the Participant’s ability to participate in the Plan. For more
information on the consequences of the Participant’s refusal to consent or withdrawal of consent,
the Participant understands that he or she may contact the Participant’s local human resources
representative.

     3. Administration.

     All questions of interpretation concerning the Grant Notice, this Option Agreement, the Plan
or any other form of agreement or other document employed by the Company in the administration of
the Plan or the Option shall be determined by the Committee. All such determinations by the
Committee shall be final, binding and conclusive upon all persons having an interest in the Option,
unless fraudulent or made in bad faith. Any and all actions, decisions and determinations taken or
made by the Committee in the exercise of its discretion pursuant to the Plan or the Option or other
agreement thereunder (other than determining questions of interpretation pursuant to the preceding
sentence) shall be final, binding and conclusive upon all persons having an interest in the Option.
Any Officer shall have the authority to act on behalf of the Company with respect to any matter,
right, obligation, or election which is the responsibility of or which is allocated to the Company
herein, provided the Officer has apparent authority with respect to such matter, right, obligation,
or election.

     4. Exercise of the Option.

          4.1 Right to Exercise. Except as otherwise provided herein, the Option shall be exercisable
on and after the Initial Vesting Date and prior to the termination of the Option (as provided in
Section 5) in an amount not to exceed the number of Vested Shares less the number of shares
previously acquired upon exercise of the Option. In no event shall the Option be exercisable for
more shares than the Number of Option Shares, as adjusted pursuant to Section 9.

          4.2 Method of Exercise. Exercise of the Option shall be by means of electronic or written
notice (the “Exercise Notice”) in a form authorized by the Company. An electronic Exercise Notice
must be digitally signed or authenticated by the Participant in such manner as required by the
notice and transmitted to the Company or an authorized representative of the Company (including a
third-party administrator designated by the Company). In the event that the Participant is not
authorized or is unable to provide an electronic Exercise Notice, the Option shall be exercised by
a written Exercise Notice addressed to the Company, which shall be signed by the Participant and
delivered in person, by certified or registered mail, return receipt requested, by confirmed
facsimile transmission, or by such other means as the Company may permit, to the Company, or an
authorized representative of the Company (including a third-party administrator designated by the
Company). Each Exercise Notice, whether electronic or written, must state the Participant’s
election to exercise the Option, the number of whole shares of Stock for which the Option is being
exercised and such other representations and agreements as to the Participant’s investment intent
with respect to such shares as may be required pursuant to the provisions of this Option Agreement.
Further, each Exercise Notice must be received by the Company prior to the termination of the
Option as set forth in Section 5 and must be accompanied by full payment of the aggregate Exercise
Price for the number of shares of Stock being purchased. The Option shall be deemed to be
exercised upon receipt by the Company of such electronic or written Exercise Notice and the
aggregate Exercise Price.

          4.3 Payment of Exercise Price.

               (a) Forms of Consideration Authorized. Except as otherwise provided below, payment of the
aggregate Exercise Price for the number of shares of Stock for which the Option is being exercised
shall be made (i) in cash, by check or in cash equivalent; (ii) if permitted by the Company and
subject to the limitations contained in Section 4.3(b), by means of (1) a Cashless Exercise, (2) a
Net-Exercise, or (3) a Stock Tender Exercise; or (iii) by any combination of the foregoing.

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               (b) Limitations on Forms of Consideration. The Company reserves, at any and all times, the
right, in the Company’s sole and absolute discretion, to establish, decline to approve or terminate
any program or procedure providing for payment of the Exercise Price through any of the means
described below, including with respect to the Participant notwithstanding that such program or
procedures may be available to others.

                    (i) Cashless Exercise. A “Cashless Exercise” means the delivery of a properly executed
Exercise Notice together with irrevocable instructions to a broker in a form acceptable to the
Company providing for the assignment to the Company of the proceeds of a sale or loan with respect
to shares of Stock acquired upon the exercise of the Option in an amount not less than the
aggregate Exercise Price for such shares (including, without limitation, through an exercise
complying with the provisions of Regulation T as promulgated from time to time by the Board of
Governors of the Federal Reserve System).

                    (ii) Net-Exercise. A “Net-Exercise” means the delivery of a properly executed Exercise Notice
electing a procedure pursuant to which (1) the Company will reduce the number of shares otherwise
issuable to the Participant upon the exercise of the Option by the largest whole number of shares
having a Fair Market Value that does not exceed the aggregate Exercise Price for the shares with
respect to which the Option is exercised, and (2) the Participant shall pay to the Company in cash
the remaining balance of such aggregate Exercise Price not satisfied by such reduction in the
number of whole shares to be issued. Following a Net-Exercise, the number of shares remaining
subject to the Option, if any, shall be reduced by the sum of (1) the net number of shares issued
to the Participant upon such exercise, and (2) the number of shares deducted by the Company for
payment of the aggregate Exercise Price.

                    (iii) Stock Tender Exercise. A “Stock Tender Exercise” means the delivery of a properly
executed Exercise Notice accompanied by (1) the Participant’s tender to the Company, or attestation
to the ownership, in a form acceptable to the Company of whole shares of Stock having a Fair Market
Value that does not exceed the aggregate Exercise Price for the shares with respect to which the
Option is exercised, and (2) the Participant’s payment to the Company in cash of the remaining
balance of such aggregate Exercise Price not satisfied by such shares’ Fair Market Value. A Stock
Tender Exercise shall not be permitted if it would constitute a violation of the provisions of any
law, regulation or agreement restricting the redemption of the Company’s stock. If required by the
Company, the Option may not be exercised by tender to the Company, or attestation to the ownership,
of shares of Stock unless such shares either have been owned by the Participant for a period of
time required by the Company (and not used for another option exercise by attestation during such
period) or were not acquired, directly or indirectly, from the Company.

          4.4 Tax Withholding.

               (a) In General. Regardless of any action taken by the Company or any other Participating
Company with respect to any or all income tax, social insurance, payroll tax, payment on account or
other tax-related withholding (the “Tax Obligations”), the Participant acknowledges that the
ultimate liability for all Tax Obligations legally due by the Participant is and remains the
Participant’s responsibility and that the Company (a) makes no representations or undertakings
regarding the treatment of any Tax Obligations in connection with any aspect of the Option,
including the grant, vesting or exercise of the Option, the subsequent sale of shares acquired
pursuant to such exercise, or the receipt of any dividends and (b) does not commit to structure the
terms of the grant or any other aspect of the Option to reduce or eliminate the Participant’s
liability for Tax Obligations. At the time of exercise of the Option, the Participant shall pay or
make adequate arrangements satisfactory to the Company to satisfy all withholding obligations of
the Company and any other Participating Company. In this regard, at the time the Option is
exercised, in whole or in part, or at any time thereafter as requested by the Company or any other
Participating Company, the Participant hereby authorizes withholding of all applicable Tax
Obligations from payroll and any other amounts payable to the Participant, and otherwise agrees to
make adequate provision for withholding of all applicable Tax Obligations, if any, by each
Participating Company which arise in connection with the Option. Alternatively, or in addition, if
permissible under applicable law, including Local Law, the Company or any other Participating
Company may sell or arrange for the sale of shares acquired by the Participant to satisfy the Tax
Obligations. Finally, the Participant shall pay to the Company or any other Participating Company
any amount of the Tax Obligations that any such company may be required to withhold as a result of
the Participant’s participation in the Plan that cannot be satisfied by the means previously
described. The Company shall have no obligation to

4

 

process the exercise of the Option or to deliver shares until the Tax Obligations as described
in this Section have been satisfied by the Participant.

               (b) Withholding in Shares. If permissible under applicable law, including Local Law, the
Company shall have the right, but not the obligation, to require the Participant to satisfy all or
any portion of the Tax Obligations upon exercise of the Option by deducting from the shares of
Stock otherwise issuable to the Participant upon such exercise a number of whole shares having a
fair market value, as determined by the Company as of the date of exercise, not in excess of the
amount of such Tax Obligations determined by the applicable minimum statutory withholding rates.

          4.5 Beneficial Ownership of Shares; Certificate Registration. The Participant hereby
authorizes the Company, in its sole discretion, to deposit for the benefit of the Participant with
any broker with which the Participant has an account relationship of which the Company has notice
any or all shares acquired by the Participant pursuant to the exercise of the Option. Except as
provided by the preceding sentence, a certificate for the shares as to which the Option is
exercised shall be registered in the name of the Participant, or, if applicable, in the names of
the heirs of the Participant.

          4.6 Restrictions on Grant of the Option and Issuance of Shares. The grant of the Option and
the issuance of shares of Stock upon exercise of the Option shall be subject to compliance with all
applicable requirements of United States federal or state or Local Law with respect to such
securities. The Option may not be exercised if the issuance of shares of Stock upon exercise would
constitute a violation of any applicable United States federal or state or foreign securities laws,
including Local Law, or other law or regulations or the requirements of any stock exchange or
market system upon which the Stock may then be listed. In addition, the Option may not be
exercised unless (i) a registration statement under the Securities Act shall at the time of
exercise of the Option be in effect with respect to the shares issuable upon exercise of the Option
or (ii) in the opinion of legal counsel to the Company, the shares issuable upon exercise of the
Option may be issued in accordance with the terms of an applicable exemption from the registration
requirements of the Securities Act. THE PARTICIPANT IS CAUTIONED THAT THE OPTION MAY NOT BE
EXERCISED UNLESS THE FOREGOING CONDITIONS ARE SATISFIED. ACCORDINGLY, THE PARTICIPANT MAY NOT BE
ABLE TO EXERCISE THE OPTION WHEN DESIRED EVEN THOUGH THE OPTION IS VESTED. The inability of the
Company to obtain from any regulatory body having jurisdiction the authority, if any, deemed by the
Company’s legal counsel to be necessary to the lawful issuance and sale of any shares subject to
the Option shall relieve the Company of any liability in respect of the failure to issue or sell
such shares as to which such requisite authority shall not have been obtained. As a condition to
the exercise of the Option, the Company may require the Participant to satisfy any qualifications
that may be necessary or appropriate, to evidence compliance with any applicable law or regulation
and to make any representation or warranty with respect thereto as may be requested by the Company.

          4.7 Fractional Shares. The Company shall not be required to issue fractional shares upon the
exercise of the Option.

     5. Nontransferability of the Option.

     During the lifetime of the Participant, the Option shall be exercisable only by the
Participant or the Participant’s guardian or legal representative. The Option shall not be subject
in any manner to anticipation, alienation, sale, exchange, transfer, assignment, pledge,
encumbrance, or garnishment by creditors of the Participant or the Participant’s beneficiary,
except transfer by will or by the laws of descent and distribution. Following the death of the
Participant, the Option, to the extent provided in Section 7, may be exercised by the Participant’s
legal representative or by any person empowered to do so under the deceased Participant’s will or
under the then applicable laws of descent and distribution.

     6. Termination of the Option.

     The Option shall terminate and may no longer be exercised after the first to occur of (a) the
close of business on the Option Expiration Date, (b) the close of business on the last date for
exercising the Option following termination of the Participant’s Service as described in Section 7,
or (c) a Change in Control to the extent provided in Section 8.

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     7. Effect of Termination of Service.

          7.1 Option Exercisability. Except as provided below during the period commencing upon the
consummation of a Change in Control and ending on the date occurring eighteen (18) months
thereafter,, the Option shall terminate immediately upon the Participant’s termination of Service
to the extent that it is then unvested and shall be exercisable after the Participant’s termination
of Service to the extent it is then vested only during the applicable time period as determined
below and thereafter shall terminate. During the period commencing upon the consummation of a
Change in Control and ending on the date occurring eighteen (18) months thereafter the unvested
portion of the Option shall not terminate if the Participant’s Service is terminated without Cause
or the Participant terminates his or her Service for “Good Reason” (as defined below). To the
extent that the preceding sentence applies, the unvested portion of the Option shall terminate, if
at all, when the period for executing (and not revoking) the separation agreement and release
described in Section 8 expires.

               (a) Disability. If the Participant’s Service terminates because of the Disability of the
Participant, the Option, to the extent unexercised and exercisable for Vested Shares on the date on
which the Participant’s Service terminated, may be exercised by the Participant (or the
Participant’s guardian or legal representative) at any time prior to the expiration of twelve (12)
months after the date on which the Participant’s Service terminated, but in any event no later than
the Option Expiration Date.

               (b) Death. If the Participant’s Service terminates because of the death of the Participant,
the Option, to the extent unexercised and exercisable for Vested Shares on the date on which the
Participant’s Service terminated, may be exercised by the Participant’s legal representative or
other person who acquired the right to exercise the Option by reason of the Participant’s death at
any time prior to the expiration of twelve (12) months after the date on which the Participant’s
Service terminated, but in any event no later than the Option Expiration Date. The Participant’s
Service shall be deemed to have terminated on account of death if the Participant dies within three
(3) months after the Participant’s termination of Service.

               (c) Termination for Cause. Notwithstanding any other provision of this Option Agreement to
the contrary, if the Participant’s Service is terminated for Cause or if, following the
Participant’s termination of Service and during any period in which the Option otherwise would
remain exercisable, the Participant engages in any act that would constitute Cause, the Option
shall terminate in its entirety and cease to be exercisable immediately upon such termination of
Service or act.

               (d) Other Termination of Service. If the Participant’s Service terminates for any reason,
except Disability, death or Cause, the Option, to the extent unexercised and exercisable for Vested
Shares by the Participant on the date on which the Participant’s Service terminated, may be
exercised by the Participant at any time prior to the expiration of three (3) months after the date
on which the Participant’s Service terminated, but in any event no later than the Option Expiration
Date.

          7.2 Extension if Exercise Prevented by Law. Notwithstanding the foregoing, other than
termination of the Participant’s Service for Cause, if the exercise of the Option within the
applicable time periods set forth in Section 7.1 is prevented by the provisions of Section 4.6, the
Option shall remain exercisable until the later of (a) thirty (30) days after the date such
exercise first would no longer be prevented by such provisions, or (b) the end of the applicable
time period under Section 7.1, but in any event no later than the Option Expiration Date.

     8. Effect of Change in Control.

     In the event of a Change in Control, except to the extent that the Committee determines to
cash out the Option in accordance with Section 13.1(c) of the Plan, the surviving, continuing,
successor or purchasing corporation or other business entity or parent thereof, as the case may be
(the “Acquiror”), may, without the consent of the Participant, assume or continue in full force and
effect the Company’s rights and obligations under all or any portion of the Option or substitute
for all or any portion of the Option a substantially equivalent option for the Acquiror’s stock.
For purposes of this Section, the Option or any portion thereof shall be deemed assumed if,
following the Change in Control, the Option confers the right to receive, subject to the terms and
conditions of the Plan and this Option Agreement, for each share of Stock subject to such portion
of the Option immediately prior to the Change in Control, the consideration (whether stock, cash,
other securities or property or a combination thereof) to which a

6

 

holder of a share of Stock on the effective date of the Change in Control was entitled (and if
holders were offered a choice of consideration, the type of consideration chosen by the holders of
a majority of the outstanding shares of Stock); provided, however, that if such consideration is
not solely common stock of the Acquiror, the Committee may, with the consent of the Acquiror,
provide for the consideration to be received upon the exercise of the Option, for each share of
Stock subject to the Option, to consist solely of common stock of the Acquiror equal in Fair Market
Value to the per share consideration received by holders of Stock pursuant to the Change in
Control. Notwithstanding the foregoing, in the event of a Change in Control in which the Acquiror,
does not assume or continue the Company’s rights and obligations under any then outstanding Option
subject to time-based vesting or substitute for such Option a substantially equivalent option for
the Acquiror’s stock, then the vesting and exercisability of such Option which is not assumed,
continued or substituted for shall be accelerated in full effective immediately prior to but
conditioned upon the consummation of the Change in Control, provided the Participant is providing
Services immediately prior to the Change in Control. In addition, and notwithstanding anything in
this Agreement to the contrary, to the extent the Option is subject to performance based vesting,
the vesting and exercisability of such an Option shall be accelerated in full immediately prior to
but conditioned upon the consummation of the Change in Control (assuming for purposes of
determining the extent of such acceleration that one hundred percent (100%) of the target level of
performance was achieved), provided that Participant is providing Services immediately prior to the
Change in Control. The Option shall terminate and cease to be outstanding effective as of the time
of consummation of the Change in Control to the extent that the Option is neither assumed or
continued by the Acquiror in connection with the Change in Control nor exercised as of the time of
the Change in Control.

          To the extent that an Option is assumed, continued or substituted for by the Acquiror, such
Option shall be subject to accelerated exercisability and vesting if, during the period commencing
upon the consummation of the Change in Control and ending on the date occurring eighteen (18)
months thereafter the Participant’s Service is terminated without Cause or the Participant
terminates his or her Service for “Good Reason.” This accelerated exercisability and vesting shall
only be applicable if the Participant executes a separation agreement and release and such
agreement and release becomes effective in accordance with its terms no later than sixty (60) days
following such termination, in which event the accelerated exercisability and vesting shall be
effective on the date the separation agreement and release becomes effective.

          For purposes of this Agreement, “Good Reason” shall be defined as the occurrence of any of the
following conditions without the Participant’s written consent, which condition(s) remain(s) in
effect thirty (30) days after written notice to the Company from the Participant of such
condition(s) and which notice must have been given within ninety (90) days following the initial
occurrence of such condition(s):

          (i) a material diminution in the Participant’s authority, duties or responsibilities, causing
the Participant’s position to be of materially lesser rank or responsibility as measured against
the Participant’s authority, duties or responsibilities immediately prior to (A) such diminution,
or (B) a Change in Control;

          (ii) a material decrease in the Participant’s “Base Salary Rate” or “Annual Target Bonus Rate”
(subject to applicable performance requirements with respect to the actual amount of the Annual
Target Bonus Rate earned and paid) other than any such material decrease that occurs in connection
with a decrease that is imposed on all employees of the Participating Company Group (which shall
include the Acquiror) at the time of such decrease; or

          (iii) the relocation of the Participant’s work place to a location that increases the regular
commute distance between the Participant’s residence and work place by more than thirty (30) miles
(one-way).

In the event that a Participant continues his/her employment for a period of one hundred eighty
(180) days or more following the occurrence of any condition constituting Good Reason, such
condition shall no longer constitute Good Reason.

          In addition, for purposes of this Agreement, “Annual Target Bonus Rate” means an amount equal
to the aggregate of all annual incentive bonuses that would be earned by the Participant at the
targeted annual rate (assuming attainment of 100% of all applicable performance goals) under the
terms of the programs, plans or agreements providing for such bonuses in which the Participant was
participating for the fiscal year in which the

7

 

Participant’s termination occurs. For this purpose, annual incentive bonuses shall not include
signing bonuses or other nonrecurring cash incentive awards. Further, for this purpose, “Base
Salary Rate” means the greater of the Participant’s (i) monthly base salary rate in effect
immediately prior to his/her Termination, or (ii) monthly base salary rate in effect immediately
prior to a Change in Control, in either case without giving effect to any reduction in the
Participant’s base salary rate that constitutes a Good Reason. For this purpose, base salary does
not include any bonuses, commissions, fringe benefits, car allowances, other irregular payments or
any other compensation except base salary.

          Notwithstanding anything in the Plan to the contrary, “Change in Control” shall mean for
purposes of this Agreement the occurrence of any of the following:

                    (i) any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act), other
than a trustee or other fiduciary holding securities of the Company under an employee benefit plan
of the Company, acquires (or has acquired during the 12-month period ending on the date of the most
recent acquisition by such person) “beneficial ownership” (as defined in Rule 13d-3 promulgated
under the Exchange Act), directly or indirectly, of stock of the Company representing more than
percent (50%) of the total combined voting power of the Company’s then-outstanding stock entitled
to vote generally in the election of directors;

                    (ii) the Company is party to a merger or consolidation which results in the holders of the
voting stock of the Company outstanding immediately prior thereto failing to retain immediately
after such merger or consolidation direct or indirect beneficial ownership of more than fifty
percent (50%) of the total combined voting power of the stock entitled to vote generally in the
election of directors of the Company or the surviving entity outstanding immediately after such
merger or consolidation;

                    (iii) the sale or disposition of all or substantially all of the Company’s assets or
consummation of any transaction having similar effect (other than a sale or disposition to one or
more subsidiaries of the Company); or

                    (iv) a change in the composition of the Company’s Board within any consecutive 12-month period
as a result of which fewer than a majority of the directors are Incumbent Directors;

provided, however, that a Change in Control shall be deemed not to include a transaction
described in subsections (i) or (ii) above in which a majority of the members of the board of
directors of the Acquiror, immediately after such transaction is comprised of directors who were
members of the Board immediately prior to consummation of such transaction.

     9. Adjustments for Changes in Capital Structure.

     Subject to any required action by the stockholders of the Company, in the event of any change
in the Stock effected without receipt of consideration by the Company, whether through merger,
consolidation, reorganization, reincorporation, recapitalization, reclassification, stock dividend,
stock split, reverse stock split, split-up, split-off, spin-off, combination of shares, exchange of
shares, or similar change in the capital structure of the Company, or in the event of payment of a
dividend or distribution to the stockholders of the Company in a form other than Stock (excepting
normal cash dividends) that has a material effect on the Fair Market Value of shares of Stock,
appropriate and proportionate adjustments shall be made in the number, Exercise Price and kind of
shares subject to the Option, in order to prevent dilution or enlargement of the Participant’s
rights under the Option. For purposes of the foregoing, conversion of any convertible securities
of the Company shall not be treated as “effected without receipt of consideration by the Company.”
Any fractional share resulting from an adjustment pursuant to this Section shall be rounded down to
the nearest whole number and the Exercise Price shall be rounded up to the nearest whole cent. In
no event may the Exercise Price be decreased to an amount less than the par value, if any, of the
stock subject to the Option. Such adjustments shall be determined by the Committee, and its
determination shall be final, binding and conclusive.

8

 

     10. Rights as a Stockholder, Director, Employee or Consultant.

     The Participant shall have no rights as a stockholder with respect to any shares covered by
the Option until the date of the issuance of the shares for which the Option has been exercised (as
evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer
agent of the Company). No adjustment shall be made for dividends, distributions or other rights
for which the record date is prior to the date the shares are issued, except as provided in Section
9. If the Participant is an Employee, the Participant understands and acknowledges that, except as
otherwise provided in a separate, written employment agreement between a Participating Company and
the Participant, the Participant’s employment is for no specified term. Nothing in this Option
Agreement shall confer upon the Participant any right to continue in the Service of a Participating
Company or interfere in any way with any right of the Participating Company Group to terminate the
Participant’s Service as a Director, an Employee or Consultant, as the case may be, at any time.

     11. Legends.

     The Company may at any time place legends referencing any applicable United States federal or
state or foreign securities law, including Local Law, restrictions on all certificates representing
shares of stock subject to the provisions of this Option Agreement. The Participant shall, at the
request of the Company, promptly present to the Company any and all certificates representing
shares acquired pursuant to the Option in the possession of the Participant in order to carry out
the provisions of this Section.

     12. Miscellaneous Provisions.

          12.1 Termination or Amendment. The Committee may terminate or amend the Plan or the Option at
any time; provided, however, that except as provided in Section 8 in connection with a Change in
Control, no such termination or amendment may adversely affect the Option or any unexercised
portion hereof without the consent of the Participant unless such termination or amendment is
necessary to comply with any applicable law or government regulation. No amendment or addition to
this Option Agreement shall be effective unless in writing.

          12.2 Further Instruments. The parties hereto agree to execute such further instruments and to
take such further action as may reasonably be necessary to carry out the intent of this Option
Agreement.

          12.3 Binding Effect. This Option Agreement shall inure to the benefit of the successors and
assigns of the Company and, subject to the restrictions on transfer set forth herein, be binding
upon the Participant and the Participant’s heirs, executors, administrators, successors and
assigns.

          12.4 Delivery of Documents and Notices. Any document relating to participation in the Plan or
any notice required or permitted hereunder shall be given in writing and shall be deemed
effectively given (except to the extent that this Option Agreement provides for effectiveness only
upon actual receipt of such notice) upon personal delivery, electronic delivery at the e-mail
address, if any, provided for the Participant by a Participating Company, or upon deposit in the
U.S. Post Office or foreign postal service, by registered or certified mail, or with a nationally
recognized overnight courier service, with postage and fees prepaid, addressed to the other party
at the address of such party set forth in the Grant Notice or at such other address as such party
may designate in writing from time to time to the other party.

               (a) Description of Electronic Delivery. The Plan documents, which may include but do not
necessarily include: the Plan, the Grant Notice, this Option Agreement, the Plan Prospectus, and
any reports of the Company provided generally to the Company’s stockholders, may be delivered to
the Participant electronically. In addition, if permitted by the Company, the Participant may
deliver electronically the Grant Notice and Exercise Notice called for by Section 4.2 to the
Company or to such third party involved in administering the Plan as the Company may designate from
time to time. Such means of electronic delivery may include but do not necessarily include the
delivery of a link to a Company intranet or the Internet site of a third party involved in
administering the Plan, the delivery of the document via e-mail or such other means of electronic
delivery specified by the Company.

9

 

               (b) Consent to Electronic Delivery. The Participant acknowledges that the Participant has
read Section 12.4(a) of this Option Agreement and consents to the electronic delivery of the Plan
documents and, if permitted by the Company, the delivery of the Grant Notice and Exercise Notice,
as described in Section 12.4(a). The Participant acknowledges that he or she may receive from the
Company a paper copy of any documents delivered electronically at no cost to the Participant by
contacting the Company by telephone or in writing. The Participant further acknowledges that the
Participant will be provided with a paper copy of any documents if the attempted electronic
delivery of such documents fails. Similarly, the Participant understands that the Participant must
provide the Company or any designated third party administrator with a paper copy of any documents
if the attempted electronic delivery of such documents fails. The Participant may revoke his or
her consent to the electronic delivery of documents described in Section 12.4(a) or may change the
electronic mail address to which such documents are to be delivered (if Participant has provided an
electronic mail address) at any time by notifying the Company of such revoked consent or revised
e-mail address by telephone, postal service or electronic mail. Finally, the Participant
understands that he or she is not required to consent to electronic delivery of documents described
in Section 12.4(a).

          12.5 Integrated Agreement. The Grant Notice, this Option Agreement and the Plan, together
with the Superseding Agreement, if any, shall constitute the entire understanding and agreement of
the Participant and the Participating Company Group with respect to the subject matter contained
herein and supersede any prior agreements, understandings, restrictions, representations, or
warranties among the Participant and the Participating Company Group with respect to such subject
matter. To the extent contemplated herein, the provisions of the Grant Notice, the Option
Agreement and the Plan shall survive any exercise of the Option and shall remain in full force and
effect.

          12.6 Country-Specific Terms and Conditions. Notwithstanding any other provision of this
Option Agreement to the contrary, the Option shall be subject to the specific terms and conditions,
if any, set forth in the Appendix to this Option Agreement which are applicable to the
Participant’s country of residence, the provisions of which are incorporated in and constitute part
of this Option Agreement. Moreover, if the Participant relocates to one of the countries included
in the Appendix, the specific terms and conditions applicable to such country will apply to the
Option to the extent the Company determines that the application of such terms and conditions is
necessary or advisable in order to comply with local law or facilitate the administration of the
Plan or this Option Agreement.

          12.7 Applicable Law. Except as provided pursuant to Section 12.6, this Option Agreement shall
be governed by the laws of the State of California as such laws are applied to agreements between
California residents entered into and to be performed entirely within the State of California. For
purposes of litigating any dispute that arises directly or indirectly from the relationship of the
parties as evidenced by this Option Agreement, the parties hereby submit to and consent to the
jurisdiction of the State of California and agree that such litigation shall be conducted only in
the courts of the County of Santa Clara, California, or the federal courts of the United States for
the Northern District of California, and no other courts, where this Option Agreement is made
and/or performed.

          12.8 Counterparts. The Grant Notice may be executed in counterparts, each of which shall be
deemed an original, but all of which together shall constitute one and the same instrument.

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APPENDIX

ADDITIONAL TERMS AND CONDITIONS OF

TRIDENT MICROSYSTEMS, INC.

STOCK OPTION AGREEMENT

FOR NON-US PARTICIPANTS

This Appendix includes additional terms and conditions that govern the Option granted to the
Participant if he or she resides in one of the countries listed below. Capitalized terms used but
not defined in this Appendix have the meanings set forth in the Plan or the Option Agreement.

NETHERLANDS 

Notification for Dutch Employees

The Participant has been granted an Option pursuant to which the Participant may acquire shares of
Stock. The Participant should be aware of the Dutch insider trading rules, which may affect the
sale of Stock. In particular, the Participant may be prohibited from effecting certain share
transactions if the Participant has “inside information” regarding the Company. The applicable
restrictions are further discussed below. The Participant is advised to read the discussion
carefully to determine whether the insider trading rules could apply to the Participant. If it is
uncertain whether the insider trading rules apply, the Company recommends that the Participant
consult with his or her legal advisor. Please note that the Company cannot be held liable if the
Participant violates the Dutch insider trading rules. The Participant is responsible for ensuring
compliance with these rules.

Prohibition Against Insider Trading. Dutch securities law prohibits insider trading. Under
Article 46 of the Act on the Supervision of the Securities Trade 1995, anyone who has “inside
information” related to the Company is prohibited from effectuating a transaction in securities in
or from the Netherlands. “Inside information” is knowledge of a detail concerning the issuer to
which the securities relate that is not public and which, if published, would reasonably be
expected to affect the stock price, regardless of the development of the price. The insider could
be any employee of the Company or its Dutch subsidiary or affiliate who has inside information.

Given the broad scope of the definition of inside information, certain employees of the Company or
of a Participating Company working at its Dutch subsidiary or affiliate may have inside information
and thus are prohibited from engaging in a transaction in securities of the Company in the
Netherlands at a time when they have such inside information.

By entering into the Option Agreement, the Participant acknowledges having read and understood the
notification above and acknowledges that it is the Participant’s responsibility to comply with the
Dutch insider trading rules.

UNITED KINGDOM 

Tax and National Insurance Contributions Acknowledgment. The following provision supplements
Section 4.4 of the Option Agreement:

The Participant agrees that if he or she does not pay, or the Company or another Participating
Company does not withhold from the Participant, the full amount of the Tax Obligations that the
Participant owes due to the exercise of the Option, or the release or assignment of the Option for
consideration, or the receipt of any other benefit in connection with the Option (the “Taxable
Event”) within ninety (90) days after the Taxable Event, or such other period specified in Section
222(1)(c) of the U.K. Income Tax (Earnings and Pensions) Act 2003, then the amount that should have
been withheld shall constitute a loan owed by the Participant to the Participant’s employer,
effective ninety (90) days after the Taxable Event. The Participant agrees that the loan will bear
interest at the official rate of HM Revenue and Customs (“HMRC”) and will be immediately due and
repayable by the Participant, and the Company or another Participating Company may recover the loan
at any time thereafter by withholding the funds from salary, bonus or any other funds due to the
Participant by the Participating Company, by withholding in shares of Stock issued upon exercise of
the Option or from the cash proceeds from the sale of shares of Stock or by

 

 

demanding cash or a cheque from the Participant. The Participant also authorizes the Company to
delay the issuance of any shares of Stock to him or her unless and until the loan is repaid in
full.

Notwithstanding the foregoing, if the Participant is an executive officer or director (within the
meaning of Section 13(k) of the U.S. Securities and Exchange Act of 1934, as amended), the terms of
the immediately foregoing provision will not apply. In the event that the Participant is an
executive officer or director and Tax Obligations are not collected from or paid by him or her
within ninety (90) days after the taxable event, the amount of any uncollected Tax Obligations may
constitute a benefit to the Participant on which additional income tax and national insurance
contributions may be payable. The Participant will be responsible for reporting any income tax and
National Insurance Contributions due on this additional benefit directly to HMRC under the
self-assessment regime.

Joint Election for Pass-Through of Employer National Insurance Contributions. The Participant
acknowledges and agrees that participation in the Plan and the exercise of the Option may, at the
Company’s discretion, be subject to and contingent upon the Participant’s prompt execution of the
Inland Revenue approved joint election in the form provided by the Company or its subsidiary,
transferring all or a portion of the Company’s (or its subsidiary’s) National Insurance
Contribution liability to the Participant.

2

 

TRIDENT MICROSYSTEMS, INC.

FORM OF RESTRICTED STOCK AGREEMENT

(For US Participant)

     Trident Microsystems, Inc. (the “Company”) has granted to the Participant named in the Notice
of Grant of Restricted Stock (the “Grant Notice”) to which this Restricted Stock Agreement (the
“Agreement”) is attached an Award consisting of Shares subject to the terms and conditions set
forth in the Grant Notice and this Agreement. The Award has been granted pursuant to and shall in
all respects be subject to the terms and conditions of the Trident Microsystems, Inc. 2010 Equity
Incentive Plan (the “Plan”), as amended to the Date of Grant, the provisions of which are
incorporated herein by reference. By signing the Grant Notice, the Participant: (a) acknowledges
receipt of and represents that the Participant has read and is familiar with the Grant Notice, this
Agreement, the Plan and a prospectus for the Plan prepared in connection with the registration with
the Securities and Exchange Commission of the Shares (the “Plan Prospectus”), (b) accepts the Award
subject to all of the terms and conditions of the Grant Notice, this Agreement and the Plan and (c)
agrees to accept as binding, conclusive and final all decisions or interpretations of the Committee
upon any questions arising under the Grant Notice, this Agreement or the Plan.

     1. Definitions and Construction.

          1.1 Definitions. Unless otherwise defined herein, capitalized terms shall have the meanings
assigned to such terms in the Grant Notice or the Plan.

          1.2 Construction. Captions and titles contained herein are for convenience only and shall not
affect the meaning or interpretation of any provision of this Agreement. Except when otherwise
indicated by the context, the singular shall include the plural and the plural shall include the
singular. Use of the term “or” is not intended to be exclusive, unless the context clearly
requires otherwise.

     2. Administration.

     All questions of interpretation concerning the Grant Notice, this Agreement, the Plan or any
other form of agreement or other document employed by the Company in the administration of the Plan
or the Award shall be determined by the Committee. All such determinations by the Committee shall
be final, binding and conclusive upon all persons having an interest in the Award, unless
fraudulent or made in bad faith. Any and all actions, decisions and determinations taken or made
by the Committee in the exercise of its discretion pursuant to the Plan or the Award or other
agreement thereunder (other than determining questions of interpretation pursuant to the preceding
sentence) shall be final, binding and conclusive upon all persons having an interest in the Award.
Any Officer shall have the authority to act on behalf of the Company with respect to any matter,
right, obligation, or election which is the responsibility of or which is allocated to the Company
herein, provided the Officer has apparent authority with respect to such matter, right, obligation,
or election.

     3. The Award.

          3.1 Grant and Issuance of Shares. On the Date of Grant, the Participant shall acquire and the
Company shall issue, subject to the provisions of this Agreement, a number of Shares equal to the
Total Number of Shares. As a condition to the issuance of the Shares, the Participant shall
execute and deliver the Grant Notice to the Company, and, if required by the Company, an Assignment
Separate from Certificate duly endorsed (with date and number of shares blank) in the form provided
by the Company.

          3.2 No Monetary Payment Required. The Participant is not required to make any monetary
payment (other than to satisfy applicable tax withholding, if any, with respect to the issuance or
vesting of the Shares) as a condition to receiving the Shares, the consideration for which shall be
past services actually rendered or future services to be rendered to a Participating Company or for
its benefit. Notwithstanding the foregoing, if required by applicable law, the Participant shall
furnish consideration in the form of cash or past services rendered to a Participating Company or
for its benefit having a value not less than the par value of the Shares issued pursuant to the
Award.

 

 

          3.3 Beneficial Ownership of Shares; Certificate Registration. The Participant hereby
authorizes the Company, in its sole discretion, to deposit the Shares with the Company’s transfer
agent, including any successor transfer agent, to be held in book entry form during the term of the
Escrow pursuant to Section 6. Furthermore, the Participant hereby authorizes the Company, in its
sole discretion, to deposit, following the term of such Escrow, for the benefit of the Participant
with any broker with which the Participant has an account relationship of which the Company has
notice any or all Shares which are no longer subject to such Escrow. Except as provided by the
foregoing, a certificate for the Shares shall be registered in the name of the Participant, or, if
applicable, in the names of the heirs of the Participant.

          3.4 Issuance of Shares in Compliance with Law. The issuance of the Shares shall be subject to
compliance with all applicable requirements of federal, state or foreign law with respect to such
securities. No Shares shall be issued hereunder if their issuance would constitute a violation of
any applicable federal, state or foreign securities laws or other law or regulations or the
requirements of any stock exchange or market system upon which the Stock may then be listed. The
inability of the Company to obtain from any regulatory body having jurisdiction the authority, if
any, deemed by the Company’s legal counsel to be necessary to the lawful issuance of any Shares
shall relieve the Company of any liability in respect of the failure to issue such Shares as to
which such requisite authority shall not have been obtained. As a condition to the issuance of the
Shares, the Company may require the Participant to satisfy any qualifications that may be necessary
or appropriate, to evidence compliance with any applicable law or regulation and to make any
representation or warranty with respect thereto as may be requested by the Company.

     4. Vesting of Shares.

     Except as provided below in connection with a Change in Control, Shares acquired pursuant to
this Agreement shall become Vested Shares as provided in the Grant Notice. For purposes of
determining the number of Vested Shares following an Ownership Change Event, credited Service shall
include all Service with any corporation which is a Participating Company at the time the Service
is rendered, whether or not such corporation is a Participating Company both before and after the
Ownership Change Event.

     5. Company Reacquisition Right.

          5.1 Grant of Company Reacquisition Right. Except to the extent otherwise provided by the
Superseding Agreement, if any, in the event that (a) the Participant’s Service terminates for any
reason or no reason, with or without cause, or (b) the Participant, the Participant’s legal
representative, or other holder of the Shares, attempts to sell, exchange, transfer, pledge, or
otherwise dispose of (other than pursuant to an Ownership Change Event), including, without
limitation, any transfer to a nominee or agent of the Participant, any Shares which are not Vested
Shares (“Unvested Shares”), the Participant shall forfeit and the Company shall automatically
reacquire the Unvested Shares, and the Participant shall not be entitled to any payment therefor
(the “Company Reacquisition Right”).

          5.2 Ownership Change Event, Non-Cash Dividends, Distributions and Adjustments. Upon the
occurrence of an Ownership Change Event, a dividend or distribution to the stockholders of the
Company paid in shares of Stock or other property, or any other adjustment upon a change in the
capital structure of the Company as described in Section 9, any and all new, substituted or
additional securities or other property (other than regular, periodic cash dividends paid on Stock
pursuant to the Company’s dividend policy) to which the Participant is entitled by reason of the
Participant’s ownership of Unvested Shares shall be immediately subject to the Company
Reacquisition Right and included in the terms “Shares,” “Stock” and “Unvested Shares” for all
purposes of the Company Reacquisition Right with the same force and effect as the Unvested Shares
immediately prior to the Ownership Change Event, dividend, distribution or adjustment, as the case
may be. For purposes of determining the number of Vested Shares following an Ownership Change
Event, dividend, distribution or adjustment, credited Service shall include all Service with any
corporation which is a Participating Company at the time the Service is rendered, whether or not
such corporation is a Participating Company both before and after any such event.

          5.3 Obligation to Repay Certain Cash Dividends and Distributions. The Participant shall, at
the discretion of the Company, be obligated to promptly repay to the Company upon termination of
the Participant’s

2

 

Service any dividends and other distributions paid to the Participant in cash with respect to
Unvested Shares reacquired by the Company pursuant to the Company Reacquisition Right.

     6. Escrow.

          6.1 Appointment of Agent. To ensure that Shares subject to the Company Reacquisition Right
will be available for reacquisition, the Participant and the Company hereby appoint the Secretary
of the Company, or any other person designated by the Company, as their agent and as
attorney-in-fact for the Participant (the “Agent”) to hold any and all Unvested Shares and to sell,
assign and transfer to the Company any such Unvested Shares reacquired by the Company pursuant to
the Company Reacquisition Right. The Participant understands that appointment of the Agent is a
material inducement to make this Agreement and that such appointment is coupled with an interest
and is irrevocable. The Agent shall not be personally liable for any act the Agent may do or omit
to do hereunder as escrow agent, agent for the Company, or attorney in fact for the Participant
while acting in good faith and in the exercise of the Agent’s own good judgment, and any act done
or omitted by the Agent pursuant to the advice of the Agent’s own attorneys shall be conclusive
evidence of such good faith. The Agent may rely upon any letter, notice or other document executed
by any signature purporting to be genuine and may resign at any time.

          6.2 Establishment of Escrow. The Participant authorizes the Company to deposit the Unvested
Shares with the Company’s transfer agent to be held in book entry form, as provided in Section 3.3,
and the Participant agrees to deliver to and deposit with the Agent each certificate, if any,
evidencing the Shares and, if required by the Company, an Assignment Separate from Certificate with
respect to such book entry shares and each such certificate duly endorsed (with date and number of
Shares blank) in the form attached to this Agreement, to be held by the Agent under the terms and
conditions of this Section 6 (the “Escrow”). Upon the occurrence of an Ownership Change Event, a
dividend or distribution to the stockholders of the Company paid in shares of Stock or other
property (other than regular, periodic dividends paid on Stock pursuant to the Company’s dividend
policy) or any other adjustment upon a change in the capital structure of the Company, as described
in Section 9, any and all new, substituted or additional securities or other property to which the
Participant is entitled by reason of his or her ownership of the Shares that remain, following such
Ownership Change Event, dividend, distribution or change described in Section 9, subject to the
Company Reacquisition Right shall be immediately subject to the Escrow to the same extent as the
Shares immediately before such event. The Company shall bear the expenses of the Escrow.

          6.3 Delivery of Shares to Participant. The Escrow shall continue with respect to any Shares
for so long as such Shares remain subject to the Company Reacquisition Right. Upon termination of
the Company Reacquisition Right with respect to Shares, the Company shall so notify the Agent and
direct the Agent to deliver such number of Shares to the Participant. As soon as practicable after
receipt of such notice, the Agent shall cause the Shares specified by such notice to be delivered
to the Participant, and the Escrow shall terminate with respect to such Shares.

     7. Tax Matters.

          7.1 Tax Withholding.

               (a) In General. At the time the Grant Notice is executed, or at any time thereafter as
requested by a Participating Company, the Participant hereby authorizes withholding from payroll
and any other amounts payable to the Participant, and otherwise agrees to make adequate provision
for, any sums required to satisfy the federal, state, local and foreign tax (including any social
insurance) withholding obligations of the Participating Company, if any, which arise in connection
with the Award, including, without limitation, obligations arising upon (a) the transfer of Shares
to the Participant, (b) the lapsing of any restriction with respect to any Shares, (c) the filing
of an election to recognize tax liability, or (d) the transfer by the Participant of any Shares.
The Company shall have no obligation to deliver the Shares or to release any Shares from the Escrow
established pursuant to Section 6 until the tax withholding obligations of the Participating
Company have been satisfied by the Participant.

               (b) Assignment of Sale Proceeds. Subject to compliance with applicable law and the Company’s
Trading Compliance Policy, if permitted by the Company, the Participant may satisfy the
Participating Company’s tax withholding obligations in accordance with procedures established by
the Company providing for delivery by the Participant to the Company or a broker approved by the
Company of properly executed instructions, in a form

3

 

approved by the Company, providing for the assignment to the Company of the proceeds of a sale
with respect to some or all of the shares becoming Vested Shares on a Vesting Date as provided in
the Grant Notice.

               (c) Withholding in Shares. The Company shall have the right, but not the obligation, to
require the Participant to satisfy all or any portion of a Participating Company’s tax withholding
obligations by withholding a number of whole, Vested Shares otherwise deliverable to the
Participant or by the Participant’s tender to the Company of a number of whole, Vested Shares or
vested shares acquired otherwise than pursuant to the Award having, in any such case, a fair market
value, as determined by the Company as of the date on which the tax withholding obligations arise,
not in excess of the amount of such tax withholding obligations determined by the applicable
minimum statutory withholding rates.

          7.2 Election Under Section 83(b) of the Code.

               (a) The Participant understands that Section 83 of the Code taxes as ordinary income the
difference between the amount paid for the Shares, if anything, and the fair market value of the
Shares as of the date on which the Shares are “substantially vested,” within the meaning of Section
83. In this context, “substantially vested” means that the right of the Company to reacquire the
Shares pursuant to the Company Reacquisition Right has lapsed. The Participant understands that he
or she may elect to have his or her taxable income determined at the time he or she acquires the
Shares rather than when and as the Company Reacquisition Right lapses by filing an election under
Section 83(b) of the Code with the Internal Revenue Service no later than thirty (30) days after
the date of acquisition of the Shares. The Participant understands that failure to make a timely
filing under Section 83(b) will result in his or her recognition of ordinary income, as the Company
Reacquisition Right lapses, on the difference between the purchase price, if anything, and the fair
market value of the Shares at the time such restrictions lapse. The Participant further
understands, however, that if Shares with respect to which an election under Section 83(b) has been
made are forfeited to the Company pursuant to its Company Reacquisition Right, such forfeiture will
be treated as a sale on which there is realized a loss equal to the excess (if any) of the amount
paid (if any) by the Participant for the forfeited Shares over the amount realized (if any) upon
their forfeiture. If the Participant has paid nothing for the forfeited Shares and has received no
payment upon their forfeiture, the Participant understands that he or she will be unable to
recognize any loss on the forfeiture of the Shares even though the Participant incurred a tax
liability by making an election under Section 83(b).

               (b) The Participant understands that he or she should consult with his or her tax advisor
regarding the advisability of filing with the Internal Revenue Service an election under Section
83(b) of the Code, which must be filed no later than thirty (30) days after the date of the
acquisition of the Shares pursuant to this Agreement. Failure to file an election under Section
83(b), if appropriate, may result in adverse tax consequences to the Participant. The Participant
acknowledges that he or she has been advised to consult with a tax advisor regarding the tax
consequences to the Participant of the acquisition of Shares hereunder. ANY ELECTION UNDER SECTION
83(b) THE PARTICIPANT WISHES TO MAKE MUST BE FILED NO LATER THAN 30 DAYS AFTER THE DATE ON WHICH
THE PARTICIPANT ACQUIRES THE SHARES. THIS TIME PERIOD CANNOT BE EXTENDED. THE PARTICIPANT
ACKNOWLEDGES THAT TIMELY FILING OF A SECTION 83(b) ELECTION IS THE PARTICIPANT’S SOLE
RESPONSIBILITY, EVEN IF THE PARTICIPANT REQUESTS THE COMPANY OR ITS REPRESENTATIVE TO FILE SUCH
ELECTION ON HIS OR HER BEHALF.

               (c) The Participant will notify the Company in writing if the Participant files an election
pursuant to Section 83(b) of the Code. The Company intends, in the event it does not receive from
the Participant evidence of such filing, to claim a tax deduction for any amount which would
otherwise be taxable to the Participant in the absence of such an election.

     8. Effect of Change in Control.

     In the event of a Change in Control, the surviving, continuing, successor or purchasing
corporation or other business entity or parent thereof, as the case may be (the “Acquiror”), may,
without the consent of the Participant, assume or continue in full force and effect the Company’s
rights and obligations under the Award or substitute for the Award a substantially equivalent award
for the Acquiror’s stock. For purposes of this Section, the Award shall be deemed assumed if,
following the Change in Control, the Award confers the right to receive, subject to the terms and
conditions of the Plan and this Agreement, for each Share subject to the Award immediately prior to
the Change

4

 

in Control, the consideration (whether stock, cash, other securities or property or a
combination thereof) to which a holder of a share of Stock on the effective date of the Change in
Control was entitled. Notwithstanding the foregoing, Shares acquired pursuant to the Award prior
to the Change in Control and any consideration received pursuant to the Change in Control with
respect to such shares shall continue to be subject to all applicable provisions of this Agreement
except as otherwise provided herein.

          To the extent that an Award is assumed, continued or substituted for by the Acquiror, such
Award shall be subject to accelerated vesting if, during the during the period commencing upon the
consummation of the Change in Control and ending on the date occurring eighteen (18) months
thereafter the Participant’s Service is terminated without Cause or the Participant terminates his
or her Service for “Good Reason.” This accelerated vesting shall only be applicable if the
Participant executes a separation agreement and release and such agreement and release becomes
effective in accordance with its terms no later than sixty (60) days following such termination, in
which event the accelerated vesting shall be effective on the date the separation agreement and
release becomes effective.

          For purposes of this Agreement, “Good Reason” shall be defined as the occurrence of any of the
following conditions without the Participant’s written consent, which condition(s) remain(s) in
effect thirty (30) days after written notice to the Company from the Participant of such
condition(s) and which notice must have been given within ninety (90) days following the initial
occurrence of such condition(s):

          (i) a material diminution in the Participant’s authority, duties or responsibilities, causing
the Participant’s position to be of materially lesser rank or responsibility as measured against
the Participant’s authority, duties or responsibilities immediately prior to (A) such diminution,
or (B) a Change in Control;

          (ii) a material decrease in the Participant’s “Base Salary Rate” or “Annual Target Bonus Rate”
(subject to applicable performance requirements with respect to the actual amount of the Annual
Target Bonus Rate earned and paid) other than any such material decrease that occurs in connection
with a decrease that is imposed on all employees of the Participating Company Group (which shall
include the Acquiror) at the time of such decrease; or

          (iii) the relocation of the Participant’s work place to a location that increases the regular
commute distance between the Participant’s residence and work place by more than thirty (30) miles
(one-way).

In the event that a Participant continues his/her employment for a period of one hundred eighty
(180) days or more following the occurrence of any condition constituting Good Reason, such
condition shall no longer constitute Good Reason.

          In addition, for purposes of this Agreement, “Annual Target Bonus Rate” means an amount equal
to the aggregate of all annual incentive bonuses that would be earned by the Participant at the
targeted annual rate (assuming attainment of 100% of all applicable performance goals) under the
terms of the programs, plans or agreements providing for such bonuses in which the Participant was
participating for the fiscal year in which the Participant’s termination occurs. For this purpose,
annual incentive bonuses shall not include signing bonuses or other nonrecurring cash incentive
awards. Further, for this purpose, “Base Salary Rate” means the greater of the Participant’s (i)
monthly base salary rate in effect immediately prior to his/her Termination, or (ii) monthly base
salary rate in effect immediately prior to a Change in Control, in either case without giving
effect to any reduction in the Participant’s base salary rate that constitutes a Good Reason. For
this purpose, base salary does not include any bonuses, commissions, fringe benefits, car
allowances, other irregular payments or any other compensation except base salary.

          Notwithstanding anything in the Plan to the contrary, “Change in Control” shall mean for
purposes of this Agreement the occurrence of any of the following:

          (i) any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act), other
than a trustee or other fiduciary holding securities of the Company under an employee benefit plan
of the Company, acquires (or has acquired during the 12-month period ending on the date of the most
recent acquisition by such person) “beneficial ownership” (as defined in Rule 13d-3 promulgated
under the Exchange Act), directly or

5 

 

indirectly, of stock of the Company representing more than percent (50%) of the total combined
voting power of the Company’s then-outstanding stock entitled to vote generally in the election of
directors;

          (ii) the Company is party to a merger or consolidation which results in the holders of the
voting stock of the Company outstanding immediately prior thereto failing to retain immediately
after such merger or consolidation direct or indirect beneficial ownership of more than fifty
percent (50%) of the total combined voting power of the stock entitled to vote generally in the
election of directors of the Company or the surviving entity outstanding immediately after such
merger or consolidation;

          (iiii) the sale or disposition of all or substantially all of the Company’s assets or
consummation of any transaction having similar effect (other than a sale or disposition to one or
more subsidiaries of the Company); or

          (iv) a change in the composition of the Company’s Board within any consecutive 12-month period
as a result of which fewer than a majority of the directors are Incumbent Directors;

provided, however, that a Change in Control shall be deemed not to include a transaction
described in subsections (i) or (ii) above in which a majority of the members of the board of
directors of the Acquiror, immediately after such transaction is comprised of directors who were
members of the Board immediately prior to consummation of such transaction.

     9. Adjustments for Changes in Capital Structure.

     Subject to any required action by the stockholders of the Company, in the event of any change
in the Stock effected without receipt of consideration by the Company, whether through merger,
consolidation, reorganization, reincorporation, recapitalization, reclassification, stock dividend,
stock split, reverse stock split, split-up, split-off, spin-off, combination of shares, exchange of
shares, or similar change in the capital structure of the Company, or in the event of payment of a
dividend or distribution to the stockholders of the Company in a form other than Stock (other than
regular, periodic cash dividends paid on Stock pursuant to the Company’s dividend policy) that has
a material effect on the Fair Market Value of shares of Stock, appropriate and proportionate
adjustments shall be made in the number and kind of shares of stock or other property subject to
the Award, in order to prevent dilution or enlargement of the Participant’s rights under the Award.
For purposes of the foregoing, conversion of any convertible securities of the Company shall not
be treated as “effected without receipt of consideration by the Company.” Any and all new,
substituted or additional securities or other property (other than regular, periodic cash dividends
paid on Stock pursuant to the Company’s dividend policy, subject to Section 5.3) to which
Participant is entitled by reason of ownership of shares acquired pursuant to this Award will be
immediately subject to the provisions of this Award on the same basis as all shares originally
acquired hereunder. Any fractional share resulting from an adjustment pursuant to this Section
shall be rounded down to the nearest whole number. Such adjustments shall be determined by the
Committee, and its determination shall be final, binding and conclusive.

     10. Rights as a Stockholder, Director, Employee or Consultant.

     The Participant shall have no rights as a stockholder with respect to any Shares subject to
the Award until the date of the issuance of the Shares (as evidenced by the appropriate entry on
the books of the Company or of a duly authorized transfer agent of the Company). No adjustment
shall be made for dividends, distributions or other rights for which the record date is prior to
the date the Shares are issued, except as provided in Section 9. Subject to the provisions of this
Agreement, the Participant shall exercise all rights and privileges of a stockholder of the Company
with respect to Shares deposited in the Escrow pursuant to Section 6, including the right to vote
such Shares and to receive all dividends and other distributions paid with respect to such Shares,
subject to Section 5.3. If the Participant is an Employee, the Participant understands and
acknowledges that, except as otherwise provided in a separate, written employment agreement between
a Participating Company and the Participant, the Participant’s employment is “at will” and is for
no specified term. Nothing in this Agreement shall confer upon the Participant any right to
continue in the Service of a Participating Company or interfere in any way with any right of the
Participating Company Group to terminate the Participant’s Service at any time.

6 

 

     11. Legends.

     The Company may at any time place legends referencing the Company Reacquisition Right and any
applicable federal, state or foreign securities law restrictions on all certificates representing
the Shares. The Participant shall, at the request of the Company, promptly present to the Company
any and all certificates representing the Shares in the possession of the Participant in order to
carry out the provisions of this Section. Unless otherwise specified by the Company, legends
placed on such certificates may include, but shall not be limited to, the following:

“THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO RESTRICTIONS SET
FORTH IN AN AGREEMENT BETWEEN THIS CORPORATION AND THE REGISTERED HOLDER, OR HIS
PREDECESSOR IN INTEREST, A COPY OF WHICH IS ON FILE AT THE PRINCIPAL OFFICE OF THIS
CORPORATION.”

     12. Transfers in Violation of Agreement.

     No Shares may be sold, exchanged, transferred, assigned, pledged, hypothecated or otherwise
disposed of, including by operation of law, in any manner which violates any of the provisions of
this Agreement and, except pursuant to an Ownership Change Event, until the date on which such
shares become Vested Shares, and any such attempted disposition shall be void. The Company shall
not be required (a) to transfer on its books any Shares which will have been transferred in
violation of any of the provisions set forth in this Agreement or (b) to treat as owner of such
Shares or to accord the right to vote as such owner or to pay dividends to any transferee to whom
such Shares will have been so transferred. In order to enforce its rights under this Section, the
Company shall be authorized to give a stop transfer instruction with respect to the Shares to the
Company’s transfer agent.

     13. Miscellaneous Provisions.

          13.1 Termination or Amendment. The Committee may terminate or amend the Plan or this
Agreement at any time; provided, however, that no such termination or amendment may adversely
affect the Participant’s rights under this Agreement without the consent of the Participant unless
such termination or amendment is necessary to comply with applicable law or government regulation.
No amendment or addition to this Agreement shall be effective unless in writing.

          13.2 Nontransferability of the Award. The right to acquire Shares pursuant to the Award shall
not be subject in any manner to anticipation, alienation, sale, exchange, transfer, assignment,
pledge, encumbrance, or garnishment by creditors of the Participant or the Participant’s
beneficiary, except transfer by will or by the laws of descent and distribution. All rights with
respect to the Award shall be exercisable during the Participant’s lifetime only by the Participant
or the Participant’s guardian or legal representative.

          13.3 Further Instruments. The parties hereto agree to execute such further instruments and to
take such further action as may reasonably be necessary to carry out the intent of this Agreement.

          13.4 Binding Effect. This Agreement shall inure to the benefit of the successors and assigns
of the Company and, subject to the restrictions on transfer set forth herein, be binding upon the
Participant and the Participant’s heirs, executors, administrators, successors and assigns.

          13.5 Delivery of Documents and Notices. Any document relating to participation in the Plan or
any notice required or permitted hereunder shall be given in writing and shall be deemed
effectively given (except to the extent that this Agreement provides for effectiveness only upon
actual receipt of such notice) upon personal delivery, electronic delivery at the e-mail address,
if any, provided for the Participant by a Participating Company, or upon deposit in the U.S. Post
Office or foreign postal service, by registered or certified mail, or with a nationally recognized
overnight courier service, with postage and fees prepaid, addressed to the other party at the
address of such party set forth in the Grant Notice or at such other address as such party may
designate in writing from time to time to the other party.

7 

 

               (a) Description of Electronic Delivery. The Plan documents, which may include but do not
necessarily include: the Plan, the Grant Notice, this Agreement, the Plan Prospectus, and any
reports of the Company provided generally to the Company’s stockholders, may be delivered to the
Participant electronically. In addition, if permitted by the Company, the parties may deliver
electronically any notices called for in connection with the Escrow and the Participant may deliver
electronically the Grant Notice to the Company or to such third party involved in administering the
Plan as the Company may designate from time to time. Such means of electronic delivery may include
but do not necessarily include the delivery of a link to a Company intranet or the Internet site of
a third party involved in administering the Plan, the delivery of the document via e-mail or such
other means of electronic delivery specified by the Company.

               (b) Consent to Electronic Delivery. The Participant acknowledges that the Participant has
read Section 13.5(a) of this Agreement and consents to the electronic delivery of the Plan
documents and, if permitted by the Company, the delivery of the Grant Notice and notices in
connection with the Escrow, as described in Section 13.5(a). The Participant acknowledges that he
or she may receive from the Company a paper copy of any documents delivered electronically at no
cost to the Participant by contacting the Company by telephone or in writing. The Participant
further acknowledges that the Participant will be provided with a paper copy of any documents if
the attempted electronic delivery of such documents fails. Similarly, the Participant understands
that the Participant must provide the Company or any designated third party administrator with a
paper copy of any documents if the attempted electronic delivery of such documents fails. The
Participant may revoke his or her consent to the electronic delivery of documents described in
Section 13.5(a) or may change the electronic mail address to which such documents are to be
delivered (if Participant has provided an electronic mail address) at any time by notifying the
Company of such revoked consent or revised e-mail address by telephone, postal service or
electronic mail. Finally, the Participant understands that he or she is not required to consent to
electronic delivery of documents described in Section 13.5(a).

          13.6 Integrated Agreement. The Grant Notice, this Agreement and the Plan, together with the
Superseding Agreement, if any, shall constitute the entire understanding and agreement of the
Participant and the Participating Company Group with respect to the subject matter contained herein
or therein and supersede any prior agreements, understandings, restrictions, representations, or
warranties among the Participant and the Participating Company Group with respect to such subject
matter. To the extent contemplated herein or therein, the provisions of the Grant Notice, this
Agreement and the Plan shall survive any settlement of the Award and shall remain in full force and
effect.

          13.7 Applicable Law. This Agreement shall be governed by the laws of the State of California
as such laws are applied to agreements between California residents entered into and to be
performed entirely within the State of California.

          13.8 Counterparts. The Grant Notice may be executed in counterparts, each of which shall be
deemed an original, but all of which together shall constitute one and the same instrument.

8 

 

ASSIGNMENT SEPARATE FROM CERTIFICATE

     FOR VALUE RECEIVED the
undersigned does hereby sell, assign and transfer unto
____________________________________________ ____________________ (_________________) shares of the Capital Stock of
TRIDENT MICROSYSTEMS, INC. standing in the undersigned’s name on the books of said corporation
represented by Certificate No. herewith and does hereby irrevocably constitute and appoint Attorney
to transfer the said stock on the books of said corporation with full power of substitution in the
premises.

	 	 	 	 	 	 	 

	Dated: _____________________

	 	 
	 	 

	 	 
	 

	 	 	 	Signature	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Print Name	 	 

Instructions: Please do not fill in any blanks other than the signature line. The purpose
of this assignment is to enable the Company to exercise its Company Reacquisition Right set forth
in the Restricted Stock Agreement without requiring additional signatures on the part of the
Participant.

 

 

SAMPLE

Internal Revenue Service

______________________

______________________

[IRS Service Center

where Form 1040 is Filed]

Re: Section 83(b) Election

Dear Sir or Madam:

The following information is submitted pursuant to section 1.83-2 of the Treasury Regulations in
connection with this election by the undersigned under section 83(b) of the Internal Revenue Code
of 1986, as amended (the “Code”).

	1.	 	The name, address and taxpayer identification number of the taxpayer are:

	 	 	 

	Name:

	 	 
	 

	 	 

	 	 	 

	Address:

	 	 
	 

	 	 
	 
	 	 
	 

	 	 

	 	 	 

	Social Security Number:

	 	 
	 

	 	 

	2.	 	The following is a description of each item of property with respect to which the election is
made:

____________________ shares of common stock of Trident Microsystems, Inc. (the
“Shares”), acquired from Trident Microsystems, Inc. (the “Company”) pursuant to a
restricted stock grant.

	3.	 	The property was transferred to the undersigned on:

Restricted stock grant date: __________________

The taxable year for which the election is made is:

Calendar Year _______

	4.	 	The nature of the restriction to which the property is subject:

The Shares are subject to automatic forfeiture to the Company upon the occurrence of
certain events. This forfeiture provision lapses with regard to a portion of the
Shares based upon the continued performance of services by the taxpayer over time.

	5.	 	The following is the fair market value at the time of transfer (determined without regard to
any restriction other than a restriction which by its terms will never lapse) of the property
with respect to which the election is made:

$ _________________ (______________ Shares at $ _____________ per share).

The property was transferred to the taxpayer pursuant to the grant of an award of
restricted stock.

	6.	 	The following is the amount paid for the property:

No monetary consideration was provided in exchange for the Shares.

 

 

	7.	 	A copy of this election has been furnished to the Company, the corporation for which the
services were performed by the undersigned.

Please acknowledge receipt of this election by date or received-stamping the enclosed copy of this
letter and returning it to the undersigned. A self-addressed stamped envelope is provided for your
convenience.

Very truly yours,

	 	 	 

	 

	 	Date: _________________________________
	 	 
	 

Enclosures

cc: Trident Microsystems, Inc.

2

 

TRIDENT MICROSYSTEMS, INC.

FORM OF RESTRICTED STOCK UNITS AGREEMENT

(For US Participant)

     Trident Microsystems, Inc. has granted to the Participant named in the Notice of Grant of
Restricted Stock Units (the “Grant Notice”) to which this Restricted Stock Units Agreement (the
“Agreement”) is attached an Award consisting of Restricted Stock Units subject to the terms and
conditions set forth in the Grant Notice and this Agreement. The Award has been granted pursuant
to and shall in all respects be subject to the terms conditions of the Trident Microsystems, Inc.
2010 Equity Incentive Plan (the “Plan”), as amended to the Date of Grant, the provisions of which
are incorporated herein by reference. By signing the Grant Notice, the Participant: (a)
acknowledges receipt of and represents that the Participant has read and is familiar with the Grant
Notice, this Agreement, the Plan and a prospectus for the Plan prepared in connection with the
registration with the Securities and Exchange Commission of the shares issuable pursuant to the
Award (the “Plan Prospectus”), (b) accepts the Award subject to all of the terms and conditions of
the Grant Notice, this Agreement and the Plan and (c) agrees to accept as binding, conclusive and
final all decisions or interpretations of the Committee upon any questions arising under the Grant
Notice, this Agreement or the Plan.

     1. Definitions and Construction.

          1.1 Definitions. Unless otherwise defined herein, capitalized terms shall have the meanings
assigned to such terms in the Grant Notice or the Plan.

               (a) “Dividend Equivalent Units” mean additional Restricted Stock Units credited pursuant to
Section 3.3.

               (b) “Units” mean the Restricted Stock Units originally granted pursuant to the Award and the
Dividend Equivalent Units credited pursuant to the Award, as both shall be adjusted from time to
time pursuant to Section 9.

          1.2 Construction. Captions and titles contained herein are for convenience only and shall not
affect the meaning or interpretation of any provision of this Agreement. Except when otherwise
indicated by the context, the singular shall include the plural and the plural shall include the
singular. Use of the term “or” is not intended to be exclusive, unless the context clearly
requires otherwise.

     2. Administration.

     All questions of interpretation concerning the Grant Notice, this Agreement, the Plan or any
other form of agreement or other document employed by the Company in the administration of the Plan
or the Award shall be determined by the Committee. All such determinations by the Committee shall
be final, binding and conclusive upon all persons having an interest in the Award, unless
fraudulent or made in bad faith. Any and all actions, decisions and determinations taken or made
by the Committee in the exercise of its discretion pursuant to the Plan or the Award or other
agreement thereunder (other than determining questions of interpretation pursuant to the preceding
sentence) shall be final, binding and conclusive upon all persons having an interest in the Award.
Any Officer shall have the authority to act on behalf of the Company with respect to any matter,
right, obligation, or election which is the responsibility of or which is allocated to the Company
herein, provided the Officer has apparent authority with respect to such matter, right, obligation,
or election.

     3. The Award.

          3.1 Grant of Units. On the Date of Grant, the Participant shall acquire, subject to the
provisions of this Agreement, the Number of Restricted Stock Units set forth in the Grant Notice,
subject to adjustment as provided in Section 3.3 and Section 9. Each Unit represents a right to
receive on a date determined in accordance with the Grant Notice and this Agreement one (1) share
of Stock.

          3.2 No Monetary Payment Required. The Participant is not required to make any monetary
payment (other than applicable tax withholding, if any) as a condition to receiving the Units or
shares of Stock issued upon

 

 

settlement of the Units, the consideration for which shall be past services actually rendered
or future services to be rendered to a Participating Company or for its benefit. Notwithstanding
the foregoing, if required by applicable law, the Participant shall furnish consideration in the
form of cash or past services rendered to a Participating Company or for its benefit having a value
not less than the par value of the shares of Stock issued upon settlement of the Units.

          3.3 Dividend Equivalent Units. On the date that the Company pays a cash dividend to holders
of Stock generally, the Participant shall be credited with a number of additional whole Dividend
Equivalent Units determined by dividing (a) the product of (i) the dollar amount of the cash
dividend paid per share of Stock on such date and (ii) the total number of Restricted Stock Units
and Dividend Equivalent Units previously credited to the Participant pursuant to the Award and
which have not been settled or forfeited pursuant to the Company Reacquisition Right (as defined
below) as of such date, by (b) the Fair Market Value per share of Stock on such date. Any
resulting fractional Dividend Equivalent Unit shall be rounded to the nearest whole number. Such
additional Dividend Equivalent Units shall be subject to the same terms and conditions and shall be
settled or forfeited in the same manner and at the same time as the Restricted Stock Units
originally subject to the Award with respect to which they have been credited.

     4. Vesting of Units.

     Except as provided below in connection with a Change in Control, Units acquired pursuant to
this Agreement shall become Vested Units as provided in the Grant Notice. Dividend Equivalent
Units shall become Vested Units at the same time as the Restricted Stock Units originally subject
to the Award with respect to which they have been credited. For purposes of determining the number
of Vested Units following an Ownership Change Event, credited Service shall include all Service
with any corporation which is a Participating Company at the time the Service is rendered, whether
or not such corporation is a Participating Company both before and after the Ownership Change
Event.

     5. Company Reacquisition Right.

          5.1 Grant of Company Reacquisition Right. Except to the extent otherwise provided by the
Superseding Agreement, if any, in the event that the Participant’s Service terminates for any
reason or no reason, with or without cause, the Participant shall forfeit and the Company shall
automatically reacquire all Units which are not, as of the time of such termination, Vested Units
(“Unvested Units”), and the Participant shall not be entitled to any payment therefor (the “Company
Reacquisition Right”).

          5.2 Ownership Change Event, Dividends, Distributions and Adjustments. Upon the occurrence of
an Ownership Change Event, a dividend or distribution to the stockholders of the Company paid in
shares of Stock or other property, or any other adjustment upon a change in the capital structure
of the Company as described in Section 9, any and all new, substituted or additional securities or
other property (other than regular, periodic cash dividends paid on Stock pursuant to the Company’s
dividend policy, which shall be treated in accordance with Section 3.3) to which the Participant is
entitled by reason of the Participant’s ownership of Unvested Units shall be immediately subject to
the Company Reacquisition Right and included in the terms “Units” and “Unvested Units” for all
purposes of the Company Reacquisition Right with the same force and effect as the Unvested Units
immediately prior to the Ownership Change Event, dividend, distribution or adjustment, as the case
may be. For purposes of determining the number of Vested Units following an Ownership Change
Event, dividend, distribution or adjustment, credited Service shall include all Service with any
corporation which is a Participating Company at the time the Service is rendered, whether or not
such corporation is a Participating Company both before and after any such event.

     6. Settlement of the Award.

          6.1 Issuance of Shares of Stock. Subject to the provisions of Section 6.3 below, the Company
shall issue to the Participant on the Settlement Date with respect to each Vested Unit to be
settled on such date one (1) share of Stock. Shares of Stock issued in settlement of Units shall
not be subject to any restriction on transfer other than any such restriction as may be required
pursuant to Section 6.3, Section 7 or the Company’s Trading Compliance Policy.

2

 

          6.2 Beneficial Ownership of Shares; Certificate Registration. The Participant hereby
authorizes the Company, in its sole discretion, to deposit any or all shares acquired by the
Participant pursuant to the settlement of the Award with the Company’s transfer agent, including
any successor transfer agent, to be held in book entry form, or to deposit such shares for the
benefit of the Participant with any broker with which the Participant has an account relationship
of which the Company has notice. Except as provided by the foregoing, a certificate for the shares
acquired by the Participant shall be registered in the name of the Participant, or, if applicable,
in the names of the heirs of the Participant.

          6.3 Restrictions on Grant of the Award and Issuance of Shares. The grant of the Award and
issuance of shares of Stock upon settlement of the Award shall be subject to compliance with all
applicable requirements of federal, state or foreign law with respect to such securities. No
shares of Stock may be issued hereunder if the issuance of such shares would constitute a violation
of any applicable federal, state or foreign securities laws or other law or regulations or the
requirements of any stock exchange or market system upon which the Stock may then be listed. The
inability of the Company to obtain from any regulatory body having jurisdiction the authority, if
any, deemed by the Company’s legal counsel to be necessary to the lawful issuance of any shares
subject to the Award shall relieve the Company of any liability in respect of the failure to issue
such shares as to which such requisite authority shall not have been obtained. As a condition to
the settlement of the Award, the Company may require the Participant to satisfy any qualifications
that may be necessary or appropriate, to evidence compliance with any applicable law or regulation
and to make any representation or warranty with respect thereto as may be requested by the Company.

          6.4 Fractional Shares. The Company shall not be required to issue fractional shares upon the
settlement of the Award.

     7. Tax Withholding.

          7.1 In General. At the time the Grant Notice is executed, or at any time thereafter as
requested by a Participating Company, the Participant hereby authorizes withholding from payroll
and any other amounts payable to the Participant, and otherwise agrees to make adequate provision
for, any sums required to satisfy the federal, state, local and foreign tax (including any social
insurance) withholding obligations of the Participating Company, if any, which arise in connection
with the Award, the vesting of Units or the issuance of shares of Stock in settlement thereof. The
Company shall have no obligation to deliver shares of Stock until the tax withholding obligations
of the Participating Company have been satisfied by the Participant.

          7.2 Assignment of Sale Proceeds. Subject to compliance with applicable law and the Company’s
Trading Compliance Policy, if permitted by the Company, the Participant may satisfy the
Participating Company’s tax withholding obligations in accordance with procedures established by
the Company providing for delivery by the Participant to the Company or a broker approved by the
Company of properly executed instructions, in a form approved by the Company, providing for the
assignment to the Company of the proceeds of a sale with respect to some or all of the shares being
acquired upon settlement of Units.

          7.3 Withholding in Shares. The Company shall have the right, but not the obligation, to
require the Participant to satisfy all or any portion of a Participating Company’s tax withholding
obligations by deducting from the shares of Stock otherwise deliverable to the Participant in
settlement of the Award a number of whole shares having a fair market value, as determined by the
Company as of the date on which the tax withholding obligations arise, not in excess of the amount
of such tax withholding obligations determined by the applicable minimum statutory withholding
rates.

     8. Effect of Change in Control.

     In the event of a Change in Control, except to the extent that the Committee determines to
cash out the Award in accordance with Section 13.1(c) of the Plan, the surviving, continuing,
successor or purchasing corporation or other business entity or parent thereof, as the case may be
(the “Acquiror”), may, without the consent of the Participant, assume or continue in full force and
effect the Company’s rights and obligations with respect to all or any portion of the outstanding
Units or substitute for all or any portion of the outstanding Units substantially equivalent rights
with respect to the Acquiror’s stock. For purposes of this Section, a Unit shall be deemed assumed

3

 

if, following the Change in Control, the Unit confers the right to receive, subject to the
terms and conditions of the Plan and this Agreement, the consideration (whether stock, cash, other
securities or property or a combination thereof) to which a holder of a share of Stock on the
effective date of the Change in Control was entitled; provided, however, that if such consideration
is not solely common stock of the Acquiror, the Committee may, with the consent of the Acquiror,
provide for the consideration to be received upon settlement of the Unit to consist solely of
common stock of the Acquiror equal in Fair Market Value to the per share consideration received by
holders of Stock pursuant to the Change in Control. Notwithstanding the foregoing, in the event
of a Change in Control in which the Acquiror, does not assume or continue the Company’s rights and
obligations under any then outstanding Units subject to time-based vesting or substitute for such
Unit a substantially equivalent right for the Acquiror’s stock, then the vesting and settlement of
such Unit which is not assumed, continued or substituted for shall be accelerated in full effective
immediately prior to but conditioned upon the consummation of the Change in Control, provided the
Participant is providing Services immediately prior to the Change in Control. In addition, and
notwithstanding anything in this Agreement to the contrary, to the extent the Unit is subject to
performance based vesting, the vesting and settlement of such a Unit shall be accelerated in full
immediately prior to but conditioned upon the consummation of the Change in Control (assuming for
purposes of determining the extent of such acceleration that one hundred percent (100%) of the
target level of performance was achieved), provided that Participant is providing Services
immediately prior to the Change in Control.

          To the extent that a Unit is assumed, continued or substituted for by the Acquiror, such Unit
shall be subject to accelerated vesting and settlement if, during the period commencing upon the
consummation of the Change in Control and ending on the date occurring eighteen (18) months
thereafter the Participant’s Service is terminated without Cause or the Participant terminates his
or her Service for “Good Reason.” This accelerated vesting and settlement shall only be applicable
if the Participant executes a separation agreement and release and such agreement and release
becomes effective in accordance with its terms no later than sixty (60) days following such
termination, in which event the accelerated vesting and settlement shall be effective on the date
the separation agreement and release becomes effective; provided, however, that if the Unit
constitutes Section 409A Deferred Compensation, the effective date of the vesting shall occur on
the date which is sixty (60) days from the qualifying Separation from Service (as defined below)
and the settlement shall occur on the later of the date of vesting or the date determined pursuant
to Section 12.1, below.

          For purposes of this Agreement, “Good Reason” shall be defined as the occurrence of any of the
following conditions without the Participant’s written consent, which condition(s) remain(s) in
effect thirty (30) days after written notice to the Company from the Participant of such
condition(s) and which notice must have been given within ninety (90) days following the initial
occurrence of such condition(s):

          (i) a material diminution in the Participant’s authority, duties or responsibilities, causing
the Participant’s position to be of materially lesser rank or responsibility as measured against
the Participant’s authority, duties or responsibilities immediately prior to (A) such diminution,
or (B) a Change in Control;

          (ii) a material decrease in the Participant’s “Base Salary Rate” or “Annual Target Bonus Rate”
(subject to applicable performance requirements with respect to the actual amount of the Annual
Target Bonus Rate earned and paid) other than any such material decrease that occurs in connection
with a decrease that is imposed on all employees of the Participating Company Group (which shall
include the Acquiror) at the time of such decrease; or

          (iii) the relocation of the Participant’s work place to a location that increases the regular
commute distance between the Participant’s residence and work place by more than thirty (30) miles
(one-way).

In the event that a Participant continues his/her employment for a period of one hundred eighty
(180) days or more following the occurrence of any condition constituting Good Reason, such
condition shall no longer constitute Good Reason.

          In addition, for purposes of this Agreement, “Annual Target Bonus Rate” means an amount equal
to the aggregate of all annual incentive bonuses that would be earned by the Participant at the
targeted annual rate (assuming attainment of 100% of all applicable performance goals) under the
terms of the programs, plans or agreements providing for such bonuses in which the Participant was
participating for the fiscal year in which the

4

 

Participant’s termination occurs. For this purpose, annual incentive bonuses shall not include
signing bonuses or other nonrecurring cash incentive awards. Further, for this purpose, “Base
Salary Rate” means the greater of the Participant’s (i) monthly base salary rate in effect
immediately prior to his/her Termination, or (ii) monthly base salary rate in effect immediately
prior to a Change in Control, in either case without giving effect to any reduction in the
Participant’s base salary rate that constitutes a Good Reason. For this purpose, base salary does
not include any bonuses, commissions, fringe benefits, car allowances, other irregular payments or
any other compensation except base salary.

          Notwithstanding anything in the Plan to the contrary, “Change in Control” shall mean for
purposes of this Agreement the occurrence of any of the following:

          (i) any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act), other
than a trustee or other fiduciary holding securities of the Company under an employee benefit plan
of the Company, acquires (or has acquired during the 12-month period ending on the date of the most
recent acquisition by such person) “beneficial ownership” (as defined in Rule 13d-3 promulgated
under the Exchange Act), directly or indirectly, of stock of the Company representing more than
percent (50%) of the total combined voting power of the Company’s then-outstanding stock entitled
to vote generally in the election of directors;

          (ii) the Company is party to a merger or consolidation which results in the holders of the
voting stock of the Company outstanding immediately prior thereto failing to retain immediately
after such merger or consolidation direct or indirect beneficial ownership of more than fifty
percent (50%) of the total combined voting power of the stock entitled to vote generally in the
election of directors of the Company or the surviving entity outstanding immediately after such
merger or consolidation;

          (iiii) the sale or disposition of all or substantially all of the Company’s assets or
consummation of any transaction having similar effect (other than a sale or disposition to one or
more subsidiaries of the Company); or

          (iv) a change in the composition of the Company’s Board within any consecutive 12-month period
as a result of which fewer than a majority of the directors are Incumbent Directors;

provided, however, that a Change in Control shall be deemed not to include a transaction
described in subsections (i) or (ii) above in which a majority of the members of the board of
directors of the Acquiror, immediately after such transaction is comprised of directors who were
members of the Board immediately prior to consummation of such transaction. Notwithstanding the
foregoing, to the extent that any amount constituting Section 409A Deferred Compensation would
become payable under this Agreement by reason of a Change in Control, such amount shall become
payable only if the event constituting a Change in Control would also constitute a change in
ownership or effective control of the Company or a change in the ownership of a substantial portion
of the assets of the Company within the meaning of Section 409A.

     9. Adjustments for Changes in Capital Structure.

     Subject to any required action by the stockholders of the Company and the requirements of
Section 409A of the Code to the extent applicable, in the event of any change in the Stock effected
without receipt of consideration by the Company, whether through merger, consolidation,
reorganization, reincorporation, recapitalization, reclassification, stock dividend, stock split,
reverse stock split, split-up, split-off, spin-off, combination of shares, exchange of shares, or
similar change in the capital structure of the Company, or in the event of payment of a dividend or
distribution to the stockholders of the Company in a form other than Stock (other than regular,
periodic cash dividends paid on Stock pursuant to the Company’s dividend policy) that has a
material effect on the Fair Market Value of shares of Stock, appropriate and proportionate
adjustments shall be made in the number of Units subject to the Award and/or the number and kind of
shares or other property to be issued in settlement of the Award, in order to prevent dilution or
enlargement of the Participant’s rights under the Award. For purposes of the foregoing, conversion
of any convertible securities of the Company shall not be treated as “effected without receipt of
consideration by the Company.” Any and all new, substituted or additional securities or other
property (other than regular, periodic cash dividends paid on Stock pursuant to the Company’s
dividend policy, which shall be treated in accordance with Section 3.3) to which Participant is
entitled by reason of ownership of Units acquired pursuant to this Award will be immediately
subject to the provisions of this Award on the same basis as all Units

5

 

originally acquired hereunder. Any fractional Unit or share resulting from an adjustment
pursuant to this Section shall be rounded down to the nearest whole number. Such adjustments shall
be determined by the Committee, and its determination shall be final, binding and conclusive.

     10. Rights as a Stockholder, Director, Employee or Consultant.

     The Participant shall have no rights as a stockholder with respect to any shares which may be
issued in settlement of this Award until the date of the issuance of such shares (as evidenced by
the appropriate entry on the books of the Company or of a duly authorized transfer agent of the
Company). No adjustment shall be made for dividends, distributions or other rights for which the
record date is prior to the date the shares are issued, except as provided in Section 3.3 and
Section 9. If the Participant is an Employee, the Participant understands and acknowledges that,
except as otherwise provided in a separate, written employment agreement between a Participating
Company and the Participant, the Participant’s employment is “at will” and is for no specified
term. Nothing in this Agreement shall confer upon the Participant any right to continue in the
Service of a Participating Company or interfere in any way with any right of the Participating
Company Group to terminate the Participant’s Service at any time.

     11. Legends.

     The Company may at any time place legends referencing any applicable federal, state or foreign
securities law restrictions on all certificates representing shares of stock issued pursuant to
this Agreement. The Participant shall, at the request of the Company, promptly present to the
Company any and all certificates representing shares acquired pursuant to this Award in the
possession of the Participant in order to carry out the provisions of this Section.

     12. Compliance with Section 409A.

     It is intended that any election, payment or benefit which is made or provided pursuant to or
in connection with this Award that may result in Section 409A Deferred Compensation shall comply in
all respects with the applicable requirements of Section 409A (including applicable regulations or
other administrative guidance thereunder, as determined by the Committee in good faith) to avoid
the unfavorable tax consequences provided therein for non-compliance. In connection with effecting
such compliance with Section 409A, the following shall apply:

          12.1 Separation from Service; Required Delay in Payment to Specified Employee.
Notwithstanding anything set forth herein to the contrary, no amount payable pursuant to this
Agreement on account of the Participant’s termination of Service which constitutes a “deferral of
compensation” within the meaning of the Treasury Regulations issued pursuant to Section 409A of the
Code (the “Section 409A Regulations”) shall be paid unless and until the Participant has incurred a
“separation from service” within the meaning of the Section 409A Regulations. Furthermore, to the
extent that the Participant is a “specified employee” within the meaning of the Section 409A
Regulations as of the date of the Participant’s separation from service, no amount that constitutes
a deferral of compensation which is payable on account of the Participant’s separation from service
shall paid to the Participant before the date (the “Delayed Payment Date”) which is first day of
the seventh month after the date of the Participant’s separation from service or, if earlier, the
date of the Participant’s death following such separation from service. All such amounts that
would, but for this Section, become payable prior to the Delayed Payment Date will be accumulated
and paid on the Delayed Payment Date.

          12.2 Other Delays in Payment. Neither the Participant nor the Company shall take any action
to accelerate or delay the payment of any benefits under this Agreement in any manner which would
not be in compliance with the Section 409A Regulations.

          12.3 Amendments to Comply with Section 409A; Indemnification. Notwithstanding any other
provision of this Agreement to the contrary, the Company is authorized to amend this Agreement, to
void or amend any election made by the Participant under this Agreement and/or to delay the payment
of any monies and/or provision of any benefits in such manner as may be determined by the Company,
in its discretion, to be necessary or appropriate to comply with the Section 409A Regulations
without prior notice to or consent of the Participant. The

6

 

Participant hereby releases and holds harmless the Company, its directors, officers and
stockholders from any and all claims that may arise from or relate to any tax liability, penalties,
interest, costs, fees or other liability incurred by the Participant in connection with the Award,
including as a result of the application of Section 409A.

          12.4 Advice of Independent Tax Advisor. The Company has not obtained a tax ruling or other
confirmation from the Internal Revenue Service with regard to the application of Section 409A to
the Award, and the Company does not represent or warrant that this Agreement will avoid adverse tax
consequences to the Participant, including as a result of the application of Section 409A to the
Award. The Participant hereby acknowledges that he or she has been advised to seek the advice of
his or her own independent tax advisor prior to entering into this Agreement and is not relying
upon any representations of the Company or any of its agents as to the effect of or the
advisability of entering into this Agreement.

     13. Miscellaneous Provisions.

          13.1 Termination or Amendment. The Committee may terminate or amend the Plan or this
Agreement at any time; provided, however, that except as provided in Section 8 in connection with a
Change in Control, no such termination or amendment may adversely affect the Participant’s rights
under this Agreement without the consent of the Participant unless such termination or amendment is
necessary to comply with applicable law or government regulation, including, but not limited to,
Section 409A. No amendment or addition to this Agreement shall be effective unless in writing.

          13.2 Nontransferability of the Award. Prior to the issuance of shares of Stock on the
applicable Settlement Date, neither this Award nor any Units subject to this Award shall be subject
in any manner to anticipation, alienation, sale, exchange, transfer, assignment, pledge,
encumbrance, or garnishment by creditors of the Participant or the Participant’s beneficiary,
except transfer by will or by the laws of descent and distribution. All rights with respect to the
Award shall be exercisable during the Participant’s lifetime only by the Participant or the
Participant’s guardian or legal representative.

          13.3 Further Instruments. The parties hereto agree to execute such further instruments and to
take such further action as may reasonably be necessary to carry out the intent of this Agreement.

          13.4 Binding Effect. This Agreement shall inure to the benefit of the successors and assigns
of the Company and, subject to the restrictions on transfer set forth herein, be binding upon the
Participant and the Participant’s heirs, executors, administrators, successors and assigns.

          13.5 Delivery of Documents and Notices. Any document relating to participation in the Plan or
any notice required or permitted hereunder shall be given in writing and shall be deemed
effectively given (except to the extent that this Agreement provides for effectiveness only upon
actual receipt of such notice) upon personal delivery, electronic delivery at the e-mail address,
if any, provided for the Participant by a Participating Company, or upon deposit in the U.S. Post
Office or foreign postal service, by registered or certified mail, or with a nationally recognized
overnight courier service, with postage and fees prepaid, addressed to the other party at the
address of such party set forth in the Grant Notice or at such other address as such party may
designate in writing from time to time to the other party.

               (a) Description of Electronic Delivery. The Plan documents, which may include but do not
necessarily include: the Plan, the Grant Notice, this Agreement, the Plan Prospectus, and any
reports of the Company provided generally to the Company’s stockholders, may be delivered to the
Participant electronically. In addition, if permitted by the Company, the Participant may deliver
electronically the Grant Notice to the Company or to such third party involved in administering the
Plan as the Company may designate from time to time. Such means of electronic delivery may include
but do not necessarily include the delivery of a link to a Company intranet or the Internet site of
a third party involved in administering the Plan, the delivery of the document via e-mail or such
other means of electronic delivery specified by the Company.

               (b) Consent to Electronic Delivery. The Participant acknowledges that the Participant has
read Section 13.5(a) of this Agreement and consents to the electronic delivery of the Plan
documents and, if permitted by

7

 

the Company, the delivery of the Grant Notice, as described in Section 13.5(a). The
Participant acknowledges that he or she may receive from the Company a paper copy of any documents
delivered electronically at no cost to the Participant by contacting the Company by telephone or in
writing. The Participant further acknowledges that the Participant will be provided with a paper
copy of any documents if the attempted electronic delivery of such documents fails. Similarly, the
Participant understands that the Participant must provide the Company or any designated third party
administrator with a paper copy of any documents if the attempted electronic delivery of such
documents fails. The Participant may revoke his or her consent to the electronic delivery of
documents described in Section 13.5(a) or may change the electronic mail address to which such
documents are to be delivered (if Participant has provided an electronic mail address) at any time
by notifying the Company of such revoked consent or revised e-mail address by telephone, postal
service or electronic mail. Finally, the Participant understands that he or she is not required to
consent to electronic delivery of documents described in Section 13.5(a).

          13.6 Integrated Agreement. The Grant Notice, this Agreement and the Plan, together with the
Superseding Agreement, if any, shall constitute the entire understanding and agreement of the
Participant and the Participating Company Group with respect to the subject matter contained herein
or therein and supersede any prior agreements, understandings, restrictions, representations, or
warranties among the Participant and the Participating Company Group with respect to such subject
matter. To the extent contemplated herein or therein, the provisions of the Grant Notice, this
Agreement and the Plan shall survive any settlement of the Award and shall remain in full force and
effect.

          13.7 Applicable Law. This Agreement shall be governed by the laws of the State of California
as such laws are applied to agreements between California residents entered into and to be
performed entirely within the State of California.

          13.8 Counterparts. The Grant Notice may be executed in counterparts, each of which shall be
deemed an original, but all of which together shall constitute one and the same instrument.

8

 

TRIDENT MICROSYSTEMS, INC.

FORM OF RESTRICTED STOCK UNITS AGREEMENT

(For Non-US Participant)

     Trident Microsystems, Inc. has granted to the Participant named in the Notice of Grant of
Restricted Stock Units (the “Grant Notice”) to which this Restricted Stock Units Agreement (the
“Agreement”) is attached an Award consisting of Restricted Stock Units subject to the terms and
conditions set forth in the Grant Notice and this Agreement. The Award has been granted pursuant
to and shall in all respects be subject to the terms conditions of the Trident Microsystems, Inc.
2010 Equity Incentive Plan (the “Plan”), as amended to the Date of Grant, the provisions of which
are incorporated herein by reference. By signing the Grant Notice, the Participant: (a)
acknowledges receipt of and represents that the Participant has read and is familiar with the Grant
Notice, this Agreement, the Plan and a prospectus for the Plan prepared in connection with the
registration with the Securities and Exchange Commission of the shares issuable pursuant to the
Award (the “Plan Prospectus”), (b) accepts the Award subject to all of the terms and conditions of
the Grant Notice, this Agreement and the Plan and (c) agrees to accept as binding, conclusive and
final all decisions or interpretations of the Committee upon any questions arising under the Grant
Notice, this Agreement or the Plan.

     1. DEFINITIONS AND CONSTRUCTION. 

          1.1 Definitions. Unless otherwise defined herein, capitalized terms shall have the meanings
assigned to such terms in the Grant Notice or the Plan.

               (a) “Dividend Equivalent Units” mean additional Restricted Stock Units credited pursuant to
Section 4.3.

               (b) “Units” mean the Restricted Stock Units originally granted pursuant to the Award and the
Dividend Equivalent Units credited pursuant to the Award, as both shall be adjusted from time to
time pursuant to Section 10.

          1.2 Construction. Captions and titles contained herein are for convenience only and shall not
affect the meaning or interpretation of any provision of this Agreement. Except when otherwise
indicated by the context, the singular shall include the plural and the plural shall include the
singular. Use of the term “or” is not intended to be exclusive, unless the context clearly
requires otherwise.

     2. Certain Conditions of the Award.

          2.1 Compliance with Local Law. The Participant agrees that the Participant will not acquire
shares pursuant to the Award or transfer, assign, sell or otherwise deal with such shares except in
compliance with Local Law.

          2.2 Employment Conditions. In accepting the Award, the Participant acknowledges that:

               (a) Any notice period mandated under Local Law shall not be treated as Service for the purpose
of determining the vesting of the Award; and the Participant’s right to receive shares in
settlement of the Award after termination of Service, if any, will be measured by the date of
termination of the Participant’s active Service and will not be extended by any notice period
mandated under Local Law. Subject to the foregoing and the provisions of the Plan, the Company, in
its sole discretion, shall determine whether the Participant’s Service has terminated and the
effective date of such termination.

               (b) The vesting of the Award shall cease upon, and no Units shall become Vested Units
following, the Participant’s termination of Service for any reason except as may be explicitly
provided by the Plan or this Agreement.

               (c) The Plan is established voluntarily by the Company. It is discretionary in nature and it
may be modified, amended, suspended or terminated by the Company at any time, unless otherwise
provided in the Plan and this Agreement.

 

 

               (d) The grant of the Award is voluntary and occasional and does not create any contractual or
other right to receive future grants of Awards, or benefits in lieu of Awards, even if Awards have
been granted repeatedly in the past.

               (e) All decisions with respect to future Award grants, if any, will be at the sole discretion
of the Company.

               (f) The Participant’s participation in the Plan shall not create a right to further Service
with any Participating Company and shall not interfere with the ability of with any Participating
Company to terminate the Participant’s Service at any time, with or without cause.

               (g) The Participant is voluntarily participating in the Plan.

               (h) The Award is an extraordinary item that does not constitute compensation of any kind for
Service of any kind rendered to any Participating Company, and which is outside the scope of the
Participant’s employment contract, if any.

               (i) The Award is not part of normal or expected compensation or salary for any purpose,
including, but not limited to, calculating any severance, resignation, termination, redundancy,
end-of-service payments, bonuses, long-service awards, pension or retirement benefits or similar
payments.

               (j) In the event that the Participant is not an employee of the Company, the Award grant will
not be interpreted to form an employment contract or relationship with the Company; and furthermore
the Award grant will not be interpreted to form an employment contract with any other Participating
Company.

               (k) The future value of the underlying shares is unknown and cannot be predicted with
certainty. If the Participant obtains shares upon settlement of the Award, the value of those
shares may increase or decrease.

               (l) No claim or entitlement to compensation or damages arises from termination of the Award or
diminution in value of the Award or shares acquired upon settlement of the Award resulting from
termination of the Participant’s Service (for any reason whether or not in breach of Local Law) and
the Participant irrevocably releases the Company and each other Participating Company from any such
claim that may arise. If, notwithstanding the foregoing, any such claim is found by a court of
competent jurisdiction to have arisen then, by signing this Agreement, the Participant shall be
deemed irrevocably to have waived the Participant’s entitlement to pursue such a claim.

          2.3 Data Privacy Consent. 

               (a) The Participant hereby explicitly and unambiguously consents to the collection, use and
transfer, in electronic or other form, of the Participant’s personal data as described in this
document by and among the members of the Participating Company Group for the exclusive purpose of
implementing, administering and managing the Participant’s participation in the Plan.

               (b) The Participant understands that the Participating Company Group holds certain personal
information about the Participant, including, but not limited to, the Participant’s name, home
address and telephone number, date of birth, social insurance number or other identification
number, salary, nationality, job title, any shares or directorships held in the Company, details of
all Awards or any other entitlement to shares awarded, canceled, exercised, vested, unvested or
outstanding in the Participant’s favor, for the purpose of implementing, administering and managing
the Plan (“Data”). The Participant understands that Data may be transferred to any third parties
assisting in the implementation, administration and management of the Plan, that these recipients
may be located in the Participant’s country or elsewhere, and that the recipient’s country may have
different data privacy laws and protections than the Participant’s country. The Participant
understands that he or she may request a list with the names and addresses of any potential
recipients of the Data by contacting the Participant’s local human resources representative. The
Participant authorizes the recipients to receive, possess, use, retain and transfer the Data, in
electronic or other form, for the purposes of implementing, administering and managing the
Participant’s

2

 

participation in the Plan, including any requisite transfer of such Data as may be required to
a broker or other third party with whom the Participant may elect to deposit any shares acquired
upon settlement of the Award. The Participant understands that Data will be held only as long as
is necessary to implement, administer and manage the Participant’s participation in the Plan. The
Participant understands that he or she may, at any time, view Data, request additional information
about the storage and processing of Data, require any necessary amendments to Data or refuse or
withdraw the consents herein, in any case without cost, by contacting in writing the Participant’s
local human resources representative. The Participant understands, however, that refusing or
withdrawing the Participant’s consent may affect the Participant’s ability to participate in the
Plan. For more information on the consequences of the Participant’s refusal to consent or
withdrawal of consent, the Participant understands that he or she may contact the Participant’s
local human resources representative.

     3. Administration.

     All questions of interpretation concerning the Grant Notice, this Agreement, the Plan or any
other form of agreement or other document employed by the Company in the administration of the Plan
or the Award shall be determined by the Committee. All such determinations by the Committee shall
be final, binding and conclusive upon all persons having an interest in the Award, unless
fraudulent or made in bad faith. Any and all actions, decisions and determinations taken or made
by the Committee in the exercise of its discretion pursuant to the Plan or the Award or other
agreement thereunder (other than determining questions of interpretation pursuant to the preceding
sentence) shall be final, binding and conclusive upon all persons having an interest in the Award.
Any Officer shall have the authority to act on behalf of the Company with respect to any matter,
right, obligation, or election which is the responsibility of or which is allocated to the Company
herein, provided the Officer has apparent authority with respect to such matter, right, obligation,
or election.

     4. The Award.

          4.1 Grant of Units. On the Date of Grant, the Participant shall acquire, subject to the
provisions of this Agreement, the Number of Restricted Stock Units set forth in the Grant Notice,
subject to adjustment as provided in Section 4.3 and Section 10. Each Unit represents a right to
receive on a date determined in accordance with the Grant Notice and this Agreement one (1) share
of Stock.

          4.2 No Monetary Payment Required. The Participant is not required to make any monetary
payment (other than applicable tax withholding, if any) as a condition to receiving the Units or
shares of Stock issued upon settlement of the Units, the consideration for which shall be past
services actually rendered or future services to be rendered to a Participating Company or for its
benefit. Notwithstanding the foregoing, if required by applicable law, the Participant shall
furnish consideration in the form of cash or past services rendered to a Participating Company or
for its benefit having a value not less than the par value of the shares of Stock issued upon
settlement of the Units.

          4.3 Dividend Equivalent Units. On the date that the Company pays a cash dividend to holders
of Stock generally, the Participant shall be credited with a number of additional whole Dividend
Equivalent Units determined by dividing (a) the product of (i) the dollar amount of the cash
dividend paid per share of Stock on such date and (ii) the total number of Restricted Stock Units
and Dividend Equivalent Units previously credited to the Participant pursuant to the Award and
which have not been settled or forfeited pursuant to the Company Reacquisition Right (as defined
below) as of such date, by (b) the Fair Market Value per share of Stock on such date. Any
resulting fractional Dividend Equivalent Unit shall be rounded to the nearest whole number. Such
additional Dividend Equivalent Units shall be subject to the same terms and conditions and shall be
settled or forfeited in the same manner and at the same time as the Restricted Stock Units
originally subject to the Award with respect to which they have been credited.

     5. Vesting of Units.

     Except as provided below in connection with a Change in Control, Units acquired pursuant to
this Agreement shall become Vested Units as provided in the Grant Notice. Dividend Equivalent
Units shall become Vested Units at the same time as the Restricted Stock Units originally subject
to the Award with respect to which they have been credited. For purposes of determining the number
of Vested Units following an Ownership Change Event, credited Service shall include all Service
with any corporation which is a Participating Company at the time the Service is

3

 

rendered, whether or not such corporation is a Participating Company both before and after the
Ownership Change Event.

     6. Company Reacquisition Right.

          6.1 Grant of Company Reacquisition Right. In the event that the Participant’s Service
terminates for any reason or no reason, with or without cause, the Participant shall forfeit and
the Company shall automatically reacquire all Units which are not, as of the time of such
termination, Vested Units (“Unvested Units”), and the Participant shall not be entitled to any
payment therefor (the “Company Reacquisition Right”).

          6.2 Ownership Change Event, Dividends, Distributions and Adjustments. Upon the occurrence of
an Ownership Change Event, a dividend or distribution to the stockholders of the Company paid in
shares of Stock or other property, or any other adjustment upon a change in the capital structure
of the Company as described in Section 10, any and all new, substituted or additional securities or
other property (other than regular, periodic cash dividends paid on Stock pursuant to the Company’s
dividend policy, which shall be treated in accordance with Section 4.3) to which the Participant is
entitled by reason of the Participant’s ownership of Unvested Units shall be immediately subject to
the Company Reacquisition Right and included in the terms “Units” and “Unvested Units” for all
purposes of the Company Reacquisition Right with the same force and effect as the Unvested Units
immediately prior to the Ownership Change Event, dividend, distribution or adjustment, as the case
may be. For purposes of determining the number of Vested Units following an Ownership Change
Event, dividend, distribution or adjustment, credited Service shall include all Service with any
corporation which is a Participating Company at the time the Service is rendered, whether or not
such corporation is a Participating Company both before and after any such event.

     7. Settlement of the Award.

          7.1 Issuance of Shares of Stock. Subject to the provisions of Section 7.3 below, the Company
shall issue to the Participant on the Settlement Date with respect to each Vested Unit to be
settled on such date one (1) share of Stock. Shares of Stock issued in settlement of Units shall
not be subject to any restriction on transfer other than any such restriction as may be required
pursuant to Section 7.3, Section 7 or the Company’s Trading Compliance Policy.

          7.2 Beneficial Ownership of Shares; Certificate Registration. The Participant hereby
authorizes the Company, in its sole discretion, to deposit any or all shares acquired by the
Participant pursuant to the settlement of the Award with the Company’s transfer agent, including
any successor transfer agent, to be held in book entry form, or to deposit such shares for the
benefit of the Participant with any broker with which the Participant has an account relationship
of which the Company has notice. Except as provided by the foregoing, a certificate for the shares
acquired by the Participant shall be registered in the name of the Participant, or, if applicable,
in the names of the heirs of the Participant.

          7.3 Restrictions on Grant of the Award and Issuance of Shares. The grant of the Award and
issuance of shares of Stock upon settlement of the Award shall be subject to compliance with all
applicable requirements of United States federal and state law and Local Law with respect to such
securities. No shares of Stock may be issued hereunder if the issuance of such shares would
constitute a violation of any applicable United States federal, state or foreign securities laws,
including Local Law, or other law or regulations or the requirements of any stock exchange or
market system upon which the Stock may then be listed. The inability of the Company to obtain from
any regulatory body having jurisdiction the authority, if any, deemed by the Company’s legal
counsel to be necessary to the lawful issuance of any shares subject to the Award shall relieve the
Company of any liability in respect of the failure to issue such shares as to which such requisite
authority shall not have been obtained. As a condition to the settlement of the Award, the Company
may require the Participant to satisfy any qualifications that may be necessary or appropriate, to
evidence compliance with any applicable law or regulation and to make any representation or
warranty with respect thereto as may be requested by the Company.

          7.4 Fractional Shares. The Company shall not be required to issue fractional shares upon the
settlement of the Award.

4

 

     8. Tax Withholding.

          8.1 In General. Regardless of any action taken by the Company or any other Participating
Company with respect to any or all income tax, social insurance, payroll tax, payment on account or
other tax-related withholding obligations (the “Tax Obligations”), the Participant acknowledges
that the ultimate liability for all Tax Obligations legally due by the Participant is and remains
the Participant’s responsibility and that the Company (a) makes no representations or undertakings
regarding the treatment of any Tax Obligations in connection with any aspect of the Award,
including the grant, vesting or settlement of the Award, the subsequent sale of shares acquired
pursuant to such settlement, or the receipt of any dividends and (b) does not commit to structure
the terms of the grant or any other aspect of the Award to reduce or eliminate the Participant’s
liability for Tax Obligations. The Participant shall pay or make adequate arrangements
satisfactory to the Company to satisfy all Tax Obligations of the Company and any other
Participating Company at the time such Tax Obligations arise. In this regard, the Participant
hereby authorizes withholding of all applicable Tax Obligations from payroll and any other amounts
payable to the Participant, and otherwise agrees to make adequate provision for withholding of all
applicable Tax Obligations, if any, by each Participating Company which arise in connection with
the Award. The Company shall have no obligation to process the settlement of the Award or to
deliver shares until the Tax Obligations as described in this Section have been satisfied by the
Participant.

          8.2 Assignment of Sale Proceeds. Subject to compliance with applicable law, including Local
Law, and the Company’s Trading Compliance Policy, if permitted by the Company, the Participant may
satisfy the Tax Obligations in accordance with procedures established by the Company providing for
delivery by the Participant to the Company or a broker approved by the Company of properly executed
instructions, in a form approved by the Company, providing for the assignment to a Participating
Company of the proceeds of a sale with respect to some or all of the shares being acquired upon
settlement of Units.

          8.3 Withholding in Shares. If permissible under applicable law, including Local Law, the
Company shall have the right, but not the obligation, to require the Participant to satisfy all or
any portion of the Tax Obligations by deducting from the shares of Stock otherwise deliverable to
the Participant in settlement of the Award a number of whole shares having a fair market value, as
determined by the Company as of the date on which the Tax Obligations arise, not in excess of the
amount of such Tax Obligations determined by the applicable minimum statutory withholding rates.

     9. Effect of Change in Control.

     In the event of a Change in Control, except to the extent that the Committee determines to
cash out the Award in accordance with Section 13.1(c) of the Plan, the surviving, continuing,
successor or purchasing corporation or other business entity or parent thereof, as the case may be
(the “Acquiror”), may, without the consent of the Participant, assume or continue in full force and
effect the Company’s rights and obligations with respect to all or any portion of the outstanding
Units or substitute for all or any portion of the outstanding Units substantially equivalent rights
with respect to the Acquiror’s stock. For purposes of this Section, a Unit shall be deemed assumed
if, following the Change in Control, the Unit confers the right to receive, subject to the terms
and conditions of the Plan and this Agreement, the consideration (whether stock, cash, other
securities or property or a combination thereof) to which a holder of a share of Stock on the
effective date of the Change in Control was entitled; provided, however, that if such consideration
is not solely common stock of the Acquiror, the Committee may, with the consent of the Acquiror,
provide for the consideration to be received upon settlement of the Unit to consist solely of
common stock of the Acquiror equal in Fair Market Value to the per share consideration received by
holders of Stock pursuant to the Change in Control. Notwithstanding the foregoing, in the event
of a Change in Control in which the Acquiror, does not assume or continue the Company’s rights and
obligations under any then outstanding Units subject to time-based vesting or substitute for such
Unit a substantially equivalent right for the Acquiror’s stock, then the vesting and settlement of
such Unit which is not assumed, continued or substituted for shall be accelerated in full effective
immediately prior to but conditioned upon the consummation of the Change in Control, provided the
Participant is providing Services immediately prior to the Change in Control. In addition, and
notwithstanding anything in this Agreement to the contrary, to the extent the Unit is subject to
performance based vesting, the vesting and settlement of such a Unit shall be accelerated in full
immediately prior to but conditioned upon the consummation of the Change in Control (assuming for
purposes of determining the extent of such

5

 

acceleration that one hundred percent (100%) of the target level of performance was achieved),
provided that Participant is providing Services immediately prior to the Change in Control.

          To the extent that a Unit is assumed, continued or substituted for by the Acquiror, such Unit
shall be subject to accelerated vesting and settlement if, during the period commencing upon the
consummation of the Change in Control and ending on the date occurring eighteen (18) months
thereafter the Participant’s Service is terminated without Cause or the Participant terminates his
or her Service for “Good Reason.” This accelerated vesting and settlement shall only be applicable
if the Participant executes a separation agreement and release and such agreement and release
becomes effective in accordance with its terms no later than sixty (60) days following such
termination, in which event the accelerated vesting and settlement shall be effective on the date
the separation agreement and release becomes effective.

          For purposes of this Agreement, “Good Reason” shall be defined as the occurrence of any of the
following conditions without the Participant’s written consent, which condition(s) remain(s) in
effect thirty (30) days after written notice to the Company from the Participant of such
condition(s) and which notice must have been given within ninety (90) days following the initial
occurrence of such condition(s):

          (i) a material diminution in the Participant’s authority, duties or responsibilities, causing
the Participant’s position to be of materially lesser rank or responsibility as measured against
the Participant’s authority, duties or responsibilities immediately prior to (A) such diminution,
or (B) a Change in Control;

          (ii) a material decrease in the Participant’s “Base Salary Rate” or “Annual Target Bonus Rate”
(subject to applicable performance requirements with respect to the actual amount of the Annual
Target Bonus Rate earned and paid) other than any such material decrease that occurs in connection
with a decrease that is imposed on all employees of the Participating Company Group (which shall
include the Acquiror) at the time of such decrease; or

          (iii) the relocation of the Participant’s work place to a location that increases the regular
commute distance between the Participant’s residence and work place by more than thirty (30) miles
(one-way).

In the event that a Participant continues his/her employment for a period of one hundred eighty
(180) days or more following the occurrence of any condition constituting Good Reason, such
condition shall no longer constitute Good Reason.

          In addition, for purposes of this Agreement, “Annual Target Bonus Rate” means an amount equal
to the aggregate of all annual incentive bonuses that would be earned by the Participant at the
targeted annual rate (assuming attainment of 100% of all applicable performance goals) under the
terms of the programs, plans or agreements providing for such bonuses in which the Participant was
participating for the fiscal year in which the Participant’s termination occurs. For this purpose,
annual incentive bonuses shall not include signing bonuses or other nonrecurring cash incentive
awards. Further, for this purpose, “Base Salary Rate” means the greater of the Participant’s (i)
monthly base salary rate in effect immediately prior to his/her Termination, or (ii) monthly base
salary rate in effect immediately prior to a Change in Control, in either case without giving
effect to any reduction in the Participant’s base salary rate that constitutes a Good Reason. For
this purpose, base salary does not include any bonuses, commissions, fringe benefits, car
allowances, other irregular payments or any other compensation except base salary.

          Notwithstanding anything in the Plan to the contrary, “Change in Control” shall mean for
purposes of this Agreement the occurrence of any of the following:

          (i) any “person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act), other
than a trustee or other fiduciary holding securities of the Company under an employee benefit plan
of the Company, acquires (or has acquired during the 12-month period ending on the date of the most
recent acquisition by such person) “beneficial ownership” (as defined in Rule 13d-3 promulgated
under the Exchange Act), directly or indirectly, of stock of the Company representing more than
percent (50%) of the total combined voting power of the Company’s then-outstanding stock entitled
to vote generally in the election of directors;

6

 

          (ii) the Company is party to a merger or consolidation which results in the holders of the
voting stock of the Company outstanding immediately prior thereto failing to retain immediately
after such merger or consolidation direct or indirect beneficial ownership of more than fifty
percent (50%) of the total combined voting power of the stock entitled to vote generally in the
election of directors of the Company or the surviving entity outstanding immediately after such
merger or consolidation;

          (iiii) the sale or disposition of all or substantially all of the Company’s assets or
consummation of any transaction having similar effect (other than a sale or disposition to one or
more subsidiaries of the Company); or

          (iv) a change in the composition of the Company’s Board within any consecutive 12-month period
as a result of which fewer than a majority of the directors are Incumbent Directors;

provided, however, that a Change in Control shall be deemed not to include a transaction
described in subsections (i) or (ii) above in which a majority of the members of the board of
directors of the Acquiror, immediately after such transaction is comprised of directors who were
members of the Board immediately prior to consummation of such transaction.

     10. Adjustments for Changes in Capital Structure.

     Subject to any required action by the stockholders of the Company, in the event of any change
in the Stock effected without receipt of consideration by the Company, whether through merger,
consolidation, reorganization, reincorporation, recapitalization, reclassification, stock dividend,
stock split, reverse stock split, split-up, split-off, spin-off, combination of shares, exchange of
shares, or similar change in the capital structure of the Company, or in the event of payment of a
dividend or distribution to the stockholders of the Company in a form other than Stock (other than
regular, periodic cash dividends paid on Stock pursuant to the Company’s dividend policy) that has
a material effect on the Fair Market Value of shares of Stock, appropriate and proportionate
adjustments shall be made in the number of Units subject to the Award and/or the number and kind of
shares or other property to be issued in settlement of the Award, in order to prevent dilution or
enlargement of the Participant’s rights under the Award. For purposes of the foregoing, conversion
of any convertible securities of the Company shall not be treated as “effected without receipt of
consideration by the Company.” Any and all new, substituted or additional securities or other
property (other than regular, periodic cash dividends paid on Stock pursuant to the Company’s
dividend policy, which shall be treated in accordance with Section 4.3) to which the Participant is
entitled by reason of ownership of Units acquired pursuant to this Award will be immediately
subject to the provisions of this Award on the same basis as all Units originally acquired
hereunder. Any fractional Unit or share resulting from an adjustment pursuant to this Section
shall be rounded down to the nearest whole number. Such adjustments shall be determined by the
Committee, and its determination shall be final, binding and conclusive.

     11. Rights as a Stockholder, Director, Employee or Consultant.

     The Participant shall have no rights as a stockholder with respect to any shares which may be
issued in settlement of this Award until the date of the issuance of such shares (as evidenced by
the appropriate entry on the books of the Company or of a duly authorized transfer agent of the
Company). No adjustment shall be made for dividends, distributions or other rights for which the
record date is prior to the date the shares are issued, except as provided in Section 4.3 and
Section 10. If the Participant is an Employee, the Participant understands and acknowledges that,
except as otherwise provided in a separate, written employment agreement between a Participating
Company and the Participant, the Participant’s employment is for no specified term. Nothing in
this Agreement shall confer upon the Participant any right to continue in the Service of a
Participating Company or interfere in any way with any right of the Participating Company Group to
terminate the Participant’s Service at any time.

     12. Legends.

     The Company may at any time place legends referencing any applicable United States federal or
state or foreign securities law, including Local Law, restrictions on all certificates representing
shares of stock issued pursuant to this Agreement. The Participant shall, at the request of the
Company, promptly present to the Company any and all

7

 

certificates representing shares acquired pursuant to this Award in the possession of the
Participant in order to carry out the provisions of this Section.

     13. Miscellaneous Provisions.

          13.1 Termination or Amendment. The Committee may terminate or amend the Plan or this
Agreement at any time; provided, however, that except as provided in Section 8 in connection with a
Change in Control, no such termination or amendment may adversely affect the Participant’s rights
under this Agreement without the consent of the Participant unless such termination or amendment is
necessary to comply with applicable law or government regulation. No amendment or addition to this
Agreement shall be effective unless in writing.

          13.2 Nontransferability of the Award. Prior to the issuance of shares of Stock on the
applicable Settlement Date, neither this Award nor any Units subject to this Award shall be subject
in any manner to anticipation, alienation, sale, exchange, transfer, assignment, pledge,
encumbrance, or garnishment by creditors of the Participant or the Participant’s beneficiary,
except transfer by will or by the laws of descent and distribution. All rights with respect to the
Award shall be exercisable during the Participant’s lifetime only by the Participant or the
Participant’s guardian or legal representative.

          13.3 Further Instruments. The parties hereto agree to execute such further instruments and to
take such further action as may reasonably be necessary to carry out the intent of this Agreement.

          13.4 Binding Effect. This Agreement shall inure to the benefit of the successors and assigns
of the Company and, subject to the restrictions on transfer set forth herein, be binding upon the
Participant and the Participant’s heirs, executors, administrators, successors and assigns.

          13.5 Delivery of Documents and Notices. Any document relating to participation in the Plan or
any notice required or permitted hereunder shall be given in writing and shall be deemed
effectively given (except to the extent that this Agreement provides for effectiveness only upon
actual receipt of such notice) upon personal delivery, electronic delivery at the e-mail address,
if any, provided for the Participant by a Participating Company, or upon deposit in the U.S. Post
Office or foreign postal service, by registered or certified mail, or with a nationally recognized
overnight courier service, with postage and fees prepaid, addressed to the other party at the
address of such party set forth in the Grant Notice or at such other address as such party may
designate in writing from time to time to the other party.

          13.6 Description of Electronic Delivery. The Plan documents, which may include but do not
necessarily include: the Plan, the Grant Notice, this Agreement, the Plan Prospectus, and any
reports of the Company provided generally to the Company’s stockholders, may be delivered to the
Participant electronically. In addition, if permitted by the Company, the Participant may deliver
electronically the Grant Notice to the Company or to such third party involved in administering the
Plan as the Company may designate from time to time. Such means of electronic delivery may include
but do not necessarily include the delivery of a link to a Company intranet or the Internet site of
a third party involved in administering the Plan, the delivery of the document via e-mail or such
other means of electronic delivery specified by the Company.

          13.7 Consent to Electronic Delivery. The Participant acknowledges that the Participant has
read Section 13.5(a) of this Agreement and consents to the electronic delivery of the Plan
documents and, if permitted by the Company, the delivery of the Grant Notice, as described in
Section 13.5(a). The Participant acknowledges that he or she may receive from the Company a paper
copy of any documents delivered electronically at no cost to the Participant by contacting the
Company by telephone or in writing. The Participant further acknowledges that the Participant will
be provided with a paper copy of any documents if the attempted electronic delivery of such
documents fails. Similarly, the Participant understands that the Participant must provide the
Company or any designated third party administrator with a paper copy of any documents if the
attempted electronic delivery of such documents fails. The Participant may revoke his or her
consent to the electronic delivery of documents described in Section 13.5(a) or may change the
electronic mail address to which such documents are to be delivered (if Participant has provided an
electronic mail address) at any time by notifying the Company of such revoked consent or revised
e-mail address by telephone, postal service or electronic mail. Finally, the Participant
understands that he or she is not required to consent to electronic delivery of documents described
in Section 13.5(a).

8

 

          13.8 Integrated Agreement. The Grant Notice, this Agreement and the Plan, together with the
Superseding Agreement, if any, shall constitute the entire understanding and agreement of the
Participant and the Participating Company Group with respect to the subject matter contained herein
or therein and supersede any prior agreements, understandings, restrictions, representations, or
warranties among the Participant and the Participating Company Group with respect to such subject
matter. To the extent contemplated herein or therein, the provisions of the Grant Notice, this
Agreement and the Plan shall survive any settlement of the Award and shall remain in full force and
effect.

          13.9 Country-Specific Terms and Conditions. Notwithstanding any other provision of this
Agreement to the contrary, the Award shall be subject to the specific terms and conditions, if any,
set forth in the Appendix to this Agreement which are applicable to the Participant’s country of
residence, the provisions of which are incorporated in and constitute part of this Agreement.
Moreover, if the Participant relocates to one of the countries included in the Appendix, the
specific terms and conditions applicable to such country will apply to the Award to the extent the
Company determines that the application of such terms and conditions is necessary or advisable in
order to comply with local law or facilitate the administration of the Plan or this Agreement.

          13.10 Applicable Law. Except as provided pursuant to Section 13.7, this Agreement shall be
governed by the laws of the State of California as such laws are applied to agreements between
California residents entered into and to be performed entirely within the State of California. For
purposes of litigating any dispute that arises directly or indirectly from the relationship of the
parties as evidenced by this Agreement, the parties hereby submit to and consent to the
jurisdiction of the State of California and agree that such litigation shall be conducted only in
the courts of the County of Santa Clara, California, or the federal courts of the United States for
the Northern District of California, and no other courts, where this Agreement is made and/or
performed.

          13.11 Counterparts. The Grant Notice may be executed in counterparts, each of which shall be
deemed an original, but all of which together shall constitute one and the same instrument.

9

 

APPENDIX

ADDITIONAL TERMS AND CONDITIONS OF

TRIDENT MICROSYSTEMS, INC.

RESTRICTED STOCK UNITS AGREEMENT

FOR NON-US PARTICIPANTS

This Appendix includes additional terms and conditions that govern the Award granted to the
Participant if he or she resides in one of the countries listed below. Capitalized terms used but
not defined in this Appendix have the meanings set forth in the Plan or the Agreement.

PEOPLE’S REPUBLIC OF CHINA 

The following terms and conditions are
applicable only to citizens or passport holders of the People’s Republic of China:

Discretionary Sale of Shares Upon Settlement by Non-Insider Employee. This paragraph shall apply
if the Participant is not subject to the Company’s Trading Compliance Policy on the applicable
Settlement Date under the Award. The Participant acknowledges that the Company, in its sole
discretion, may determine it to be necessary or advisable to require an immediate sale by the
Participant of the shares of Stock issued to the Participant on any Settlement Date in order to
comply with Local Law. If the Company so determines, then by accepting this Award, and without
prior notification of such determination by the Company, the Participant hereby:

	 	(i)	 	authorizes and directs the Company to deposit the shares of Stock issuable to the
Participant on the Settlement Date to an account established for the benefit of the
Participant in accordance with Section 7.3 of the Agreement with a brokerage firm
designated by the Company (the “Brokerage Firm”); and
	 
	 	(ii)	 	irrevocably appoints the Company as the Participant’s agent to instruct the Brokerage
Firm to sell on behalf of the Participant at the prevailing market price on the Settlement
Date (or on the next trading day if the Settlement Date is not a day on which the markets
are open for trading) the shares of Stock deposited with the Brokerage Firm on such
Settlement Date; and
	 
	 	(iii)	 	irrevocably assigns to the Company or any other Participating Company out of the
proceeds of such sale of shares an amount equal to the Tax Obligations required to be
withheld in accordance with Section 8 of the Agreement, and authorizes the Company to
instruct the Brokerage Firm to pay to the Company or another Participating Company an
amount equal to the Tax Obligations required to be withheld; and
	 
	 	(iv)	 	authorizes and directs the Company to instruct the Brokerage Firm to deliver the
proceeds of such sale of shares, net of brokerage commissions, fees and Tax Obligations
withheld, to the Company for the benefit of the Participant and to be deposited to a
designated custodial account for payment to the Participant; and
	 
	 	(v)	 	authorizes the Company and any other Participating Company to provide to the Brokerage
Firm information regarding the details of the Award and the Tax Obligations, and authorizes
the Brokerage Firm to provide to the Company and any other Participating Company
confirmation of the details of the sale of the shares of Stock.

Mandatory Sale of Shares Upon Settlement by Insider Employee. This paragraph shall apply if the
Participant is subject to the Company’s Trading Compliance Policy on the applicable Settlement Date
under the Award. The Company shall require an immediate sale by the Participant of the shares of
Stock issued to the Participant on each such Settlement Date under the Award. By accepting this
Award, the Participant hereby irrevocably appoints the Company as the Participant’s agent and
authorizes the Company, any other Participating Company, and the Brokerage Firm to take each of the
enumerated actions described in the preceding paragraph in connection with each such sale of
shares.

 

 

Special Administration in China. The vesting of the Award and the Participant’s ability to receive
funds upon the sale of shares to be issued in settlement of the Award, as described above, will be
contingent upon the Company or its Affiliate obtaining approval from the State Administration of
Foreign Exchange (“SAFE”) of the People’s Republic of China for the related foreign exchange
transaction and the establishment of a SAFE-approved bank account. The receipt of funds by the
Participant from the sale of the shares and the conversion of those funds to the local currency
must be approved by SAFE. In order to comply with the SAFE regulations, the proceeds from the sale
of the shares must be repatriated to China through a SAFE-approved bank account established and
monitored by the Company or its Affiliate.

FRANCE 

Acknowledgment. “En signant et renvoyant le présent document décrivant les termes et conditions de
mon attribution de récompense, je confirme ainsi avoir lu et compris les documents relatifs à cette
attribution (le Plan et ce contrat) qui m’ont été communiqués en langue anglaise. J’en accepte les
termes en connaissance de cause.”

“By signing and returning this document providing for the terms and conditions of my Award grant, I
confirm having read and understood the documents relating to this grant (the Plan and this
Agreement) which were provided to me in English. I accept the terms of those documents
accordingly.”

HONG KONG 

Securities Law Notice. The Award and shares of Stock issued upon settlement of the Award do not
constitute a public offering of securities under Hong Kong law and are available only to employees
of the Company and its affiliates. The Agreement, including this Appendix, the Plan and other
incidental communication materials have not been prepared in accordance with and are not intended
to constitute a “prospectus” for a public offering of securities under the applicable securities
legislation in Hong Kong. These documents have not been reviewed by any regulatory authority in
Hong Kong. The Award is intended only for the personal use of the Participant and may not be
distributed to any other person. If the Participant is in any doubt about any of the contents of
the Agreement, including this Appendix or the Plan, the Participant should obtain independent
professional advice.

Vesting of Awards and Sale of Shares. In the event that the Award vests and shares of Stock are
issued to the Participant within six months after the Date of Grant, the Participant agrees that he
or she will not dispose of any of such shares prior to the date six months following the Date of
Grant.

INDIA 

The Participant must repatriate all proceeds received from the sale of shares of Stock acquired
upon settlement of the Award to India within ninety (90) days following the date of sale. The
Participant must maintain the foreign inward remittance certificate received from the bank where
the foreign currency is deposited in the event that the Reserve Bank of India or the Participant’s
employer requests proof of repatriation. It is the Participant’s responsibility to comply with
applicable exchange control laws in India.

NETHERLANDS 

Notification for Dutch Employees

The Participant has been granted an Award pursuant to which the Participant may acquire shares of
Stock. The Participant should be aware of the Dutch insider trading rules, which may affect the
sale of Stock. In particular, the Participant may be prohibited from effecting certain share
transactions if the Participant has “inside information” regarding the Company. The applicable
restrictions are further discussed below. The Participant is advised to read the discussion
carefully to determine whether the insider trading rules could apply to the Participant. If it is
uncertain whether the insider trading rules apply, the Company recommends that the Participant
consult with his or her legal advisor. Please note that the Company cannot be held liable if the
Participant violates the Dutch insider trading rules. The Participant is responsible for ensuring
compliance with these rules.

2

 

Prohibition Against Insider Trading. Dutch securities law prohibits insider trading. Under
Article 46 of the Act on the Supervision of the Securities Trade 1995, anyone who has “inside
information” related to the Company is prohibited from effectuating a transaction in securities in
or from the Netherlands. “Inside information” is knowledge of a detail concerning the issuer to
which the securities relate that is not public and which, if published, would reasonably be
expected to affect the stock price, regardless of the development of the price. The insider could
be any employee of the Company or its Dutch subsidiary or affiliate who has inside information.

Given the broad scope of the definition of inside information, certain employees of the Company or
of a Participating Company working at its Dutch subsidiary or affiliate may have inside information
and thus are prohibited from engaging in a transaction in securities of the Company in the
Netherlands at a time when they have such inside information.

By entering into the Agreement, the Participant acknowledges having read and understood the
notification above and acknowledges that it is the Participant’s responsibility to comply with the
Dutch insider trading rules.

SINGAPORE 

Securities Law Notice

The Award and the shares of Stock to be acquired upon settlement of the Award are offered on a
private basis and are therefore exempt from registration in Singapore.

UNITED KINGDOM 

Tax and National Insurance Contributions Acknowledgment. The following provision supplements
Section 8 of the Agreement:

The Participant agrees that if he or she does not pay, or the Company or another Participating
Company does not withhold from the Participant, the full amount of the Tax Obligations that the
Participant owes due to the vesting of the Award, or the release or assignment of the Award for
consideration, or the receipt of any other benefit in connection with the Award (the “Taxable
Event”) within ninety (90) days after the Taxable Event, or such other period specified in Section
222(1)(c) of the U.K. Income Tax (Earnings and Pensions) Act 2003, then the amount that should have
been withheld shall constitute a loan owed by the Participant to the Participant’s employer,
effective ninety (90) days after the Taxable Event. The Participant agrees that the loan will bear
interest at the official rate of HM Revenue and Customs (“HMRC”) and will be immediately due and
repayable by the Participant, and the Company or another Participating Company may recover the loan
at any time thereafter by withholding the funds from salary, bonus or any other funds due to the
Participant by the Participating Company, by withholding in shares of Stock issued upon settlement
of the Award or from the cash proceeds from the sale of shares of Stock or by demanding cash or a
cheque from the Participant. The Participant also authorizes the Company to delay the issuance of
any shares of Stock to him or her unless and until the loan is repaid in full.

Notwithstanding the foregoing, if the Participant is an executive officer or director (within the
meaning of Section 13(k) of the U.S. Securities and Exchange Act of 1934, as amended), the terms of
the immediately foregoing provision will not apply. In the event that the Participant is an
executive officer or director and Tax Obligations are not collected from or paid by him or her
within ninety (90) days after the Taxable Event, the amount of any uncollected Tax Obligations may
constitute a benefit to the Participant on which additional income tax and national insurance
contributions may be payable. The Participant will be responsible for reporting any income tax and
National Insurance Contributions due on this additional benefit directly to HMRC under the
self-assessment regime.

Joint Election for Pass-Through of Employer National Insurance Contributions. The Participant
acknowledges and agrees that participation in the Plan and the vesting of the Award may, at the
Company’s discretion, be subject to and contingent upon the Participant’s prompt execution of the
Inland Revenue approved joint election in the form provided by the Company or its subsidiary,
transferring all or a portion of the Company’s (or its subsidiary’s) National Insurance
Contribution liability to the Participant.

3

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