Document:

Prepared by MERRILL CORPORATION

QuickLinks
 -- Click here to rapidly navigate through this document

 
 

EXHIBIT 10.39    
  

October 30,
2001 

Robert
G. Gargus

20565 Debbie Lane

Saratoga, CA 95070-4827 

Dear
Bob: 

    Silicon
Image, Inc. (the "Company") is pleased to confirm our offer to you with us, in the position of  Chief Financial Officer and Vice President of Finance and
Administration. The terms of our offer and the benefits currently provided by the Company are
as follows: 

	1.
	Your
initial annual base salary will be $225,000, payable in accordance with the Company's normal payroll practices with such payroll
deductions and withholdings as are required by law and subject to adjustment by the Board of Directors of the Company (the "Board"). In addition, you
will be eligible to participate in regular health insurance, vacation and other employee benefit plans established by the Company for its employees from time to time. You will have overall
responsibility for the financial management of the Company and will report directly to the Chief Operating Officer. You will be expected to devote your full working time and attention to the business
of the Company, and you will not render services to any other business without the prior approval of the Board or, directly or indirectly, engage or participate in any business that is competitive in
any manner with the business of the Company. You will also be expected to comply with and be bound by the Company's operating policies, procedures and practices that are from time to time in effect
during the term of your employment.

	2.
	As
an employee of the Company you will have access to certain Company confidential information and you may, during the course of your employment, develop certain information or
inventions which will be the property of the Company. To protect the interest of the Company, you will need to sign the Company's standard "Employee Inventions and Confidentiality Agreement" as a
condition of your employment. We wish to impress upon you that we do not wish you to bring any confidential or proprietary material of any former employer or to violate any
other obligations you may have to your former employer.

	3.
	We
will recommend that the Board approve a grant to you of stock options for 400,000 shares of the Company's Common Stock at an
exercise price equal to the closing price on the date of such grant. Provided you continue to provide services to the Company, the stock options will become vested and exercisable with respect to 25%
of the total shares granted on the 12 month anniversary date of your employment commencement date, and thereafter on the same date of each succeeding month an additional 2.083% of the total
shares granted under the stock option will become vested and exercisable. However, the grant of such stock options by the Company is subject to the Board's approval and this promise to recommend such
approval is not a promise of compensation, and is not intended to create any obligation on the part of the Company. Further details on the Company's stock option plan and on any specific stock option
grant to you will be provided upon approval of such stock option grant by the Board.

	4.
	Upon
termination of your employment with the Company for any reason, you will receive payment for all unpaid salary and vacation accrued to the date of your termination of
employment; and your benefits will be continued under the Company's then existing benefit plans and policies as provided under the terms of such plans and policies and as required by applicable law.
Under certain circumstances, you will also be entitled to receive severance benefits as set forth below, but you will not be entitled to any other compensation, award or damages with respect to your
employment or termination. A general release of claims agreement, as provided by the Company, must be executed by you to receive any severance benefits. 
	a)
	In
the event of your voluntary termination or termination for Cause, you will not be entitled to any cash severance benefits or additional vesting of shares of restricted stock or
options. 

	b)
	In
the event of your termination without Cause, you shall be entitled to severance for three (3) months following your termination, at the rate of your current annual base
salary (less applicable deductions and withholdings) plus any target bonus in place for that year, and in accordance with the Company's normal payroll practices.

	c)
	If
the event of your termination without Cause occurs within six months following a Change of Control, you will be entitled to (i) six (6) months of your current
annual base salary (less applicable deductions and withholdings) paid in accordance with the Company's normal payroll practices over the six months following your termination; (ii) a prorated
payment of your performance bonus for any that exist for such fiscal year in which your employment is terminated; and (iii) six (6) months accelerated vesting of your shares under your
stock option as provided above (or securities of the surviving entity that are received in connection with the Change of Control).

	d)
	"Change
of Control" is the consummation of any transaction or series of related transactions which results in all of the holders of record of the Company's capital stock immediately
prior to the
transaction or transactions holding less than fifty percent (50%) of the voting power of the surviving entity in the transaction or transactions immediately after the transaction or transactions,
including the acquisition of the Company by another entity and any reorganization, merger or consolidation, or which results in the sale of all or substantially all of the assets of the Company;
provided, however, if the surviving entity in the transaction or transactions is wholly owned by another (the "Parent"), then a Change of Control has occurred only if the holders of record of the
Company's capital stock immediately prior to the transaction or transactions hold less than fifty percent (50%) of the voting power of the Parent immediately after the transaction or transactions.

	e)
	"Cause"
means (i) any breach of this agreement, the Employee Inventions and Confidentiality Agreement between you and the Company, or any other written agreement between you
and the Company, if such breach causes harm to the Company; (ii) any negligence or willful misconduct by you in your performance of duties to the Company that causes harm to the Company,
including (without limitation) repeated failure to follow the directions of the person to whom you report; (iii) your repeated failure to diligently follow the lawful directions of the Board of
Directors of the Company or your repeated failure to diligently perform your duties in a reasonable manner pursuant to this agreement; (iv) commission of a felony under the laws of the United
States or any state thereof; (v) commission of any act of fraud, embezzlement or dishonesty or breach of fiduciary duties; (vi) the abuse of alcohol or controlled substances that has a
detrimental effect upon your performance of your duties under this agreement; or (vii) a good faith determination by the Company's Board of Directors or the person to whom you report that your
performance is unsatisfactory. A termination without Cause shall mean a termination for any reason other than those listed in clauses (i)-(vii) of the preceding sentence or death or
disability. 

	5.
	This
offer of employment is made to you in confidence, and its terms must not be disclosed by you to anyone outside your immediate family. If you do disclose any of its terms to
such a family member, you must caution him or her that such information is confidential and must not be disclosed to anyone.

	6.
	You
agree that any dispute regarding the interpretation or enforcement of this agreement shall be decided by confidential, final and binding arbitration conducted by Judicial
Arbitration and Mediation Services ("JAMS") under the then existing JAMS rules rather than by litigation in court, trial by jury, administrative
proceeding or in any other forum.

	7.
	While
we look forward to a long and profitable relationship, should you decide to accept our offer, you will be an at-will employee of the Company, which means the
employment relationship can be terminated by either of us for any reason at any time. Any statements or representations to the contrary (and, indeed, any statements contradicting any provision in this
letter) should be regarded 

by
you as ineffective. Further, your participation in any stock option or benefit program is not to be regarded as assuring you of continuing employment for any particular period of time. 

	8.
	Please
note that because of employer regulations adopted in the Immigration Reform and Control Act of 1986, within three business days of starting your new position you will need to
present documentation demonstrating that you have authorization to work in the United States. If you have questions about this requirement, which applies to U. S. citizens and non-U.S.
citizens alike, you may contact our Human Resource department.

	9.
	Please
sign the enclosed copy of this letter in the space indicated and return it to the Human Resource department. Your signature will acknowledge that you have read and understood
and agreed to the terms and conditions of this offer and the attached documents. Should you have anything else that you wish to discuss, please do not hesitate to call. 

We
look forward to the opportunity to welcome you to Silicon Image, Inc. 

Sincerely,

	/s/ STEVE TIRADO   
 Steve Tirado

Chief Operating Officer	 	 	 	 

Acknowledged,
Accepted and Agreed 

	/s/ ROBERT G. GARGUS   
 Robert G. Gargus	 	October 30, 2001
 Date	 	Start Date

This
letter is simply for your information and is not to be construed as a contract of employment. 

QuickLinks

EXHIBIT 10.39<PAGE>

                                                                   Exhibit 10.15

                                   IGEN, INC.
                 1994 NON-EMPLOYEE DIRECTORS' STOCK OPTION PLAN
                            ADOPTED ON APRIL 25, 1994
                APPROVED BY THE SHAREHOLDERS ON SEPTEMBER 8, 1994
                             AMENDED ON JUNE 6, 2001

1.       PURPOSE.

         (a) The purpose of the 1994 Non-Employee Directors' Stock Option Plan
(the "Plan") is to provide a means by which each director of IGEN, Inc. (the
"Company") who is not otherwise an officer or employee of the Company or of any
Affiliate of the Company (each such person being hereafter referred to as a
"Non-Employee Director") will be given an opportunity to purchase stock of the
Company.

         (b) The word "Affiliate" as used in the Plan means any parent
corporation or subsidiary corporation of the Company as those terms are defined
in Sections 424(e) and (f), respectively, of the Internal Revenue Code of 1986,
as amended from time to time (the "Code").

         (c) The Company, by means of the Plan, seeks to retain the services of
persons now serving as Non-Employee Directors of the Company, to secure and
retain the services of persons capable of serving in such capacity, and to
provide incentives for such persons to exert maximum efforts for the success of
the Company.

2.       ADMINISTRATION.

         (a) The Plan shall be administered by the Board of Directors of the
Company (the "Board") unless and until the Board delegates administration to a
committee, as provided in subparagraph 2(b).

         (b) The Board may delegate administration of the Plan to a committee
composed of not fewer than two (2) members of the Board (the "Committee"). If
administration is delegated to a Committee, the Committee shall have, in
connection with the administration of the Plan, the

                                     1

<PAGE>

powers theretofore possessed by the Board, subject, however, to such
resolutions, not inconsistent with the provisions of the Plan, as may be adopted
from time to time by the Board. The Board may abolish the Committee at any time
and revest in the Board the administration of the Plan.

3.       SHARES SUBJECT TO THE PLAN.

         (a) Subject to the provisions of paragraph 10 below, relating to
adjustments upon changes in stock, the stock that may be sold pursuant to
options granted under the Plan shall not exceed in the aggregate One Hundred and
Fifty Thousand (150,000) shares of the Company's common stock. If any option
granted under the Plan shall for any reason expire or otherwise terminate
without having been exercised in full, the stock not purchased under such option
shall again become available for the Plan.

         (b) The stock subject to the Plan may be unissued shares or reacquired
shares, bought on the market or otherwise.

4.       ELIGIBILITY.

         Options shall be granted only to Non-Employee Directors of the Company.

5.       GRANTS OF STOCK OPTIONS.

         (a) On April 25,1994, each person who is a Non-Employee Director shall
be, and hereby is, subject to the Plan becoming effective under the provisions
of paragraph 13 below, granted an option to purchase Ten Thousand (10,000)
shares of common stock of the Company on the terms and conditions set forth
herein.

         (b) Each person who was not previously an officer or employee of the
Company and who becomes a Non-Employee Director after the adoption date of this
Plan shall be granted an option on the date such person becomes a Non-Employee
Director (the "Appointment Date") to

                                       2
<PAGE>

purchase Ten Thousand (10,000) shares of common stock of the Company.

         (c)(i) an option to purchase Ten Thousand (10,000) shares of common
stock of the Company shall be granted to each person who was a Non-Employee
Director on June 6, 2001; and (ii) such additional option or options to purchase
shares of common stock of the Company as may be granted by the Board of
Directors to Non-Employee Director(s) in the amounts and on at such date or
dates as may be set by the Board of Directors.

6.       OPTION PROVISIONS.

         Each option shall contain the following terms and conditions:

         (a) The term of each option commences on the date it is granted and,
unless sooner terminated as set forth herein, expires on the date ("Expiration
Date") ten (10) years from the date of grant. If the optionee's service as a
Non-Employee Director of the Company terminates for any reason or for no reason,
the option shall terminate on the earlier of the Expiration Date or the date
three (3) months following the date of termination of service; provided,
however, that if such termination of service is due to the optionee's death, the
option shall terminate on the earlier of the Expiration Date or twelve (12)
months following the date of the optionee's death. In any and all circumstances,
an option may be exercised following termination of the optionee's service as a
Non-Employee Director of the Company only as to that number of shares as to
which it was exercisable on the date of termination of such service under the
provisions of subparagraph 6(e).

         (b) The exercise price of each option shall be one hundred percent
(100%) of the fair market value of the stock subject to such option on the date
such option is granted.

         (c) Payment of the exercise price of each option is due in full in cash
upon any exercise when the number of shares being purchased upon such exercise
is less than 1,000

                                       3
<PAGE>

shares; but when the number of shares being purchased upon an exercise is 1,000
or more shares, the optionee may elect to make payment of the exercise price
under one of the following alternatives:

             (i)    Payment of the exercise price per share in cash at the time
         of exercise; or

             (ii)   Provided that at the time of the exercise the Company's
         common stock is publicly traded and quoted regularly in The Wall
         Street Journal, payment by delivery of shares of common stock of the
         Company already owned by the optionee, held for the period required to
         avoid a charge to the Company's reported earnings, and owned free and
         clear of any liens, claims, encumbrances or security interest, which
         common stock shall be valued at fair market value on the date
         preceding the date of exercise; or

             (iii)  Payment by a combination of the methods of payment specified
         in subparagraph 6(c)(i) and 6(c)(ii) above.

         Notwithstanding the foregoing, this option may be exercised pursuant to
a program developed under Regulation T as promulgated by the Federal Reserve
Board which results in the receipt of cash (or check) by the Company prior to
the issuance of shares of the Company's common stock.

         (d) An option shall not be transferable except by will or by the laws
of descent and distribution, and shall be exercisable during the lifetime of the
person to whom the option is granted only by such person or by his guardian or
legal representative.

         (e) Each option granted under the Plan shall become exercisable over a
period of five (5) years, with one-fifth of each option granted becoming
exercisable one year following the date of grant and one-twentieth of each
option granted becoming exercisable every three (3) months thereafter, provided
that the optionee has, during the entire period prior to such vesting date,

                                       4
<PAGE>

continuously served as a Non-Employee Director or as an employee of or
consultant to the Company or any Affiliate of the Company, whereupon such option
shall become fully exercisable in accordance with its terms with respect to that
portion of the shares represented by that installment.

         (f) The Company may require any optionee, or any person to whom an
option is transferred under subparagraph 6(d), as a condition of exercising any
such option: (i) to give written assurances satisfactory to the Company as to
the optionee's knowledge and experience in financial and business matters; and
(ii) to give written assurances satisfactory to the Company stating that such
person is acquiring the stock subject to the option for such person's own
account and not with any present intention of selling or otherwise distributing
the stock. These requirements, and any assurances given pursuant to such
requirements, shall be inoperative if (i) the issuance of the shares upon the
exercise of the option has been registered under a then-currently-effective
registration statement under the Securities Act of 1933, as amended (the
"Securities Act"), or (ii), as to any particular requirement, a determination is
made by counsel for the Company that such requirement need not be met in the
circumstances under the then-applicable securities laws.

         (g) Notwithstanding anything to the contrary contained herein, an
option may not be exercised unless the shares issuable upon exercise of such
option are then registered under the Securities Act or, if such shares are not
then so registered, the Company has determined that such exercise and issuance
would be exempt from the registration requirements of the Securities Act.

7.       COVENANTS OF THE COMPANY.

         (a) During the terms of the options granted under the Plan, the Company
shall keep available at all times the number of shares of stock required to
satisfy such options.

                                       5
<PAGE>

         (b) The Company shall seek to obtain from each regulatory commission or
agency having jurisdiction over the Plan such authority as may be required to
issue and sell shares of stock upon exercise of the options granted under the
Plan; provided, however, that this undertaking shall not require the Company to
register under the Securities Act either the Plan, any option granted under the
Plan, or any stock issued or issuable pursuant to any such option. If the
Company is unable to obtain from any such regulatory commission or agency the
authority which counsel for the Company deems necessary for the lawful issuance
and sale of stock under the Plan, the Company shall be relieved from any
liability for failure to issue and sell stock upon exercise of such options.

8.       USE OF PROCEEDS FROM STOCK.

         Proceeds from the sale of stock pursuant to options granted under the
Plan shall constitute general funds of the Company.

9.       MISCELLANEOUS.

         (a) Neither an optionee nor any person to whom an option is transferred
under subparagraph 6(d) shall be deemed to be the holder of, or to have any of
the rights of a holder with respect to, any shares subject to such option unless
and until such person has satisfied all requirements for exercise of the option
pursuant to its terms.

         (b) Throughout the term of any option granted pursuant to the Plan, the
Company shall make available to the holder of such option, not later than one
hundred twenty (120) days after the close of each of the Company's fiscal years
during the option term, upon request, such financial and other information
regarding the Company as comprises the annual report to the stockholders of the
Company provided for in the Bylaws of the Company and such other information
regarding the Company as the holder of such option may reasonably request.

                                       6
<PAGE>

         (c) Nothing in the Plan or in any instrument executed pursuant thereto
shall confer upon any Non-Employee Director any right to continue in the service
of the Company or any Affiliate or shall affect any right of the Company, its
Board or stockholders or any Affiliate to terminate the service of any
Non-Employee Director with or without cause.

         (d) No Non-Employee Director, individually or as a member of a group,
and no beneficiary or other person claiming under or through him, shall have any
right, title or interest in or to any option reserved for the purposes of the
Plan except as to such shares of common stock, if any, as shall have been
reserved for him pursuant to an option granted to him.

         (e) In connection with each option made pursuant to the Plan, it shall
be a condition precedent to the Company's obligation to issue or transfer shares
to a Non-Employee Director, or to evidence the removal of any restrictions on
transfer, that such Non-Employee Director make arrangements satisfactory to the
Company to insure that the amount of any federal or other withholding tax
required to be withheld with respect to such sale or transfer, or such removal
or lapse, is made available to the Company for timely payment of such tax.

10.      ADJUSTMENTS UPON CHANGES OF STOCK.

         (a) If any change is made in the stock subject to the Plan, or subject
to any option granted under the Plan (through merger, consolidation,
reorganization, recapitalization, stock dividend, dividend in property other
than cash, stock split, liquidating dividend, combination of shares, exchange of
shares, change in corporate structure or otherwise), the Plan and outstanding
options will be appropriately adjusted in the class(es) and maximum number of
shares subject to the Plan and the class(es) and number of shares and price per
share of stock subject to outstanding options.

                                       7
<PAGE>

         (b) In the event of: (1) a merger or consolidation in which the Company
is not the surviving corporation; (2) a reverse merger in which the Company is
the surviving corporation but the shares of the Company's common stock
outstanding immediately preceding the merger are convened by virtue of the
merger into other property, whether in the form of securities, cash or
otherwise; or (3) any other capital reorganization in which more than fifty
percent (50%) of the shares of the Company entitled to vote are exchanged, any
surviving corporation, other than the Company, shall assume any options
outstanding under the Plan or shall substitute similar options for those
outstanding under the Plan or, if the Company is the surviving corporation, such
options shall continue in full force and effect.

11.      AMENDMENT OF THE PLAN.

         (a) The Board at any time, and from time to time, may amend the Plan,
provided, however, that the Board shall not amend the plan more than once every
six months, with respect to the provisions of the plan which relate to the
amount, price and timing of grants, other than to comport with changes in the
Code, the Employee Retirement Income Security Act of 1974, as amended, or the
rules thereunder. Except as provided in paragraph 10 relating to adjustments
upon changes in stock, no amendment shall be effective unless approved by the
stockholders of the Company within twelve (12) months before or after the
adoption of the amendment, where the amendment will

             (i)    Increase the number of shares which may be issued under the
         Plan;

             (ii)   Modify the requirements as to eligibility for participation
         in the Plan (to the extent such modification requires stockholder
         approval in order for the Plan to comply with the requirements of Rule
         16b-3); or

                                       8
<PAGE>

             (iii)  Modify the Plan in any other way if such modification
         requires stockholder approval in order for the Plan to comply with the
         requirements of Rule 16b-3.

         (b) Rights and obligations under any option granted before any
amendment of the Plan shall not be altered or impaired by such amendment unless
(i) the Company requests the consent of the person to whom the option was
granted and (ii) such person consents in writing.

12.      TERMINATION OR SUSPENSION OF THE PLAN.

         (a) The Board may suspend or terminate the Plan at any time. Unless
sooner terminated, the Plan shall terminate on April 24, 2004. No options may be
granted under the Plan while the Plan is suspended or after it is terminated.

         (b) Rights and obligations under any option granted while the Plan is
in effect shall not be altered or impaired by suspension or termination of the
Plan, except with the consent of the person to whom the option was granted.

         (c) The Plan shall terminate upon the occurrence of any of the events
described in Section 10(b) above.

13.      EFFECTIVE DATE OF PLAN; CONDITIONS OF EXERCISE.

         (a) The Plan shall become effective upon adoption by the Board of
Directors, subject to the conditions subsequent that the Plan is approved by the
shareholders of the Company.

          (b) No option granted under the Plan shall be exercised or exercisable
unless and until the condition of subparagraph 13(a) above has been met.

                                       9

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00031-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00031-of-00352.parquet"}]]