Document:

Exhibit 10.1

 

Federal Express Delivery

 

August 30, 2005

 

Necip Sayiner

1216 Highland Drive

Orefield, PA 18069

 

Dear Necip:

 

Offer

Based on your
qualifications and our interviews, we are pleased to offer you the position of
President and Chief Executive Officer of Silicon Laboratories Inc. (the “Company”), reporting to its board of
directors.  You will be paid a bi-weekly
base salary of $15,692.31 (“Base Salary”),
and you will be eligible to participate in the Company’s 2006 Bonus Plan, with
an annual target payout of $475,000 (the “Bonus”).  The criteria for earning a Bonus will be set
by the Compensation Committee in accordance with the 2006 Bonus Plan.  All payments of Base Salary and Bonus will be
made less all applicable deductions and authorized withholdings in accordance
with the Company’s standard payroll practices.

 

Option
Grant

You will be
granted a nonstatutory stock option (the “Option”) to
purchase 500,000 shares of Silicon Laboratories Inc. Common Stock (the “Option Shares”).  The Option will have an exercise price per
share equal to the closing price as reported on the Nasdaq National Market on
your start date.  The Option Shares will
be subject to a five-year vesting schedule such that twenty percent of the
Option Shares will vest on the first anniversary of your start date and the
remaining Option Shares will vest monthly at a rate of 8,333 option shares per
month thereafter, contingent upon your continued service as an employee,
consultant or director of the Company, in each case, through such anniversary
and the last day of each such month.  The
Option will be subject to the terms and conditions of the attached Notice of
Grant of Stock Option, Stock Option Agreement, Addendum to Stock Option
Agreement and 2000 Stock Incentive Plan.

 

Restricted
Stock Units

You will also be
granted an award of 150,000 Restricted Stock Units (the “Award”).  The Award will vest in five annual
installments at the rate of 20% of the Restricted Stock Units on each
anniversary of your start date, contingent upon your continued service as an
employee, consultant or director of the Company through each such date.  The Award will be subject to the terms and
conditions of the attached Notice of Grant of Restricted Stock Units,
Restricted Stock Units Agreement, Addendum to Notice of Grant of Restricted
Stock Units and Restricted Stock Units Agreement and the 2000 Stock Incentive
Plan.

 

Indemnification
and Director’s and Officer’s Insurance

The Company and
you will enter into an Indemnification Agreement substantially in the form

 

 

attached.  Promptly upon commencement of your
employment, the Company will submit to its insurers all necessary information
to provide you coverage under its Directors and Officers Insurance, which
coverage will be effective as of your start date.

 

Severance

In the event of
your Involuntary Termination for any reason other than Misconduct, you will be
eligible to receive a gross payment equal to your annual Base Salary plus a
bonus payment (calculated by doubling the actual bonus amount earned by you
under the then applicable Company Bonus Plan for the last two full fiscal
quarters prior to your Involuntary Termination) (such Base Salary and bonus are
collectively referred to herein as the “Severance Payment”),
contingent upon your execution of an agreement in a form satisfactory to the
Company containing a full general release of any and all potential claims
against the Company and its affiliates and agents (generally in a substantially
similar form as the attached).  Such
Severance Payment shall be made less all applicable deductions and authorized
withholdings and be paid in a lump sum within 30 days after the effective date
of the release agreement.  In addition
and similarly contingent upon execution of an appropriate release, for the time
during which you are unemployed or not eligible for health insurance
benefits from a new employer immediately following such Involuntary Termination for any reason other than
Misconduct, but not to exceed one year following the “qualifying event” date as
determined under COBRA,
the Company will pay on your behalf the premium you would be required to pay to
maintain COBRA coverage for you and your dependents.  In the event of your Misconduct, you shall
repay any Severance Payment and COBRA coverage payments previously paid to you.

 

For purposes of
this Agreement, an “Involuntary
Termination”
shall mean the involuntary termination of your employment by the Company or
your voluntary resignation following (A) a change in your position with
the Company (or parent or subsidiary employing you) which materially reduces
your level of authority or responsibility, (B) a reduction in your level
of cash compensation (including base salary and target bonus under any
performance based bonus or incentive programs) by more than 15% unless pursuant
to a reduction that is also applied to substantially all other executive
officers of the Company, (C) a relocation of your place of employment by
more than 50 miles, provided and only if such change, reduction or relocation
is effected by the Company without your consent, or (D) a material breach
by the Company of the terms of this letter.

 

For purposes of
this Agreement, the term “Misconduct”
shall mean (a) your commission of any act of fraud, embezzlement or
dishonesty in any way related to your employment with the Company or that, in the
reasonable opinion of the Board, adversely affects the Company’s prospects or
reputation or your ability to perform your obligations or duties to the Company
or any of its subsidiaries, (b) your unauthorized use or disclosure of confidential
information or trade secrets of the Company (or any Parent or Subsidiary), (c) your
indictment with respect to any crime that could, in the reasonable opinion of the
Board, adversely affect the Company’s prospects or reputation or your ability
to perform your obligations or duties to the Company or any of its
subsidiaries, including without limitation any charges of securities fraud,
insider trading, or
money laundering, (d) any conviction of, or plea of guilty or no contest
to, a felony, during your employment with the Company or with
respect to an act occurring during your employment with the Company, (e) any intentional wrongdoing on
your part, whether by

 

 

omission or
commission, which adversely affects the business or affairs of the Company (or
any parent or subsidiary) in a material manner, or (f) any breach by you
of any agreement between you and the Company, including this agreement or the
New-Hire Proprietary Information, Inventions, Non-Competition and Non-Solicitation
Agreements.

 

For purposes of
this Agreement, a “Voluntary Termination” shall mean a voluntary termination that is not an Involuntary
Termination.

 

The foregoing definitions of “Involuntary
Termination” and “Misconduct” shall control over conflicting definitions for
the same terms in the Notice of Grant of Stock Option, Stock Option Agreement,
Addendum to Stock Option Agreement, Notice of Grant of Restricted Stock Units,
Restricted Stock Units Agreement, Addendum to Notice of Grant of Restricted Stock
Units and Restricted Stock Units Agreement, and 2000 Stock Incentive Plan.

 

The foregoing
definitions shall not affect the Company’s right to terminate your employment
at any time or for any reason.

 

Reporting
Bonus

On your first day
of employment with the Company, the Company will pay you a gross lump sum of
$300,000 (the “Reporting Bonus”) less all
applicable deductions and authorized withholdings.  You shall repay the Reporting Bonus to the
Company in the case of a Voluntary Termination of your employment with the
Company within one year from your start date.

 

Relocation

The Company will
reimburse you according to our relocation policy for costs associated with your
move to Austin.  The relocation policy
covers the cost of moving your household goods and the expense of you and your
family traveling to the new location.  The
Company will provide you with temporary housing upon your arrival in Austin and
up until you and your immediate family move to Austin.  You will also receive reimbursement for
travel back and forth between Austin, Texas and Allentown, Pennsylvania until
you and your immediate family move to Austin. Additionally, you will receive a
reimbursement for certain real estate costs associated with selling your home
in Pennsylvania and with purchasing a home in Texas.  Typical costs eligible for reimbursement
would include sales commissions to broker customary in the local market, survey
fees, title search, one-time title insurance policy issuance, mortgage company
one-time fees, and filing fees. A copy of the moving and relocation policy is
enclosed.  To the extent the moving and
relocation costs, the temporary housing and the travel back and forth between
Austin and Allentown are taxable, the Company will “gross up” the taxable costs
in a manner that will effectively pay all the applicable income and employment taxes
on your behalf caused by reimbursement of such costs and payment of such taxes.  You shall repay the Company for all such
moving and relocation expenses and the gross up payments above in the case of a
Voluntary Termination of your employment with the Company within one year from
your start date.

 

Benefits

The Company offers
a competitive benefits/compensation package including Medical Insurance, Dental
Insurance, Vision Care, Short Term Disability, Long Term Disability Life
Insurance, and the 125 Cafeteria Plan for Medical and Dependent Care
Reimbursements.  You will be eligible to
participate in the Company’s 401(k) Plan. 
The Company will match employee
401(k)

 

 

contributions dollar-for-dollar to a maximum of $1,500 annually. You may also enroll in the Company’s
employee stock purchase plan on the enrollment date following your start
date.  You will receive two weeks of paid
vacation and 13 paid holidays per year. Vacation will increase to 3 weeks
beginning in year 4 of service and 4 weeks in year 6.  More information about these benefits can be
found in the enclosures accompanying this letter.

 

Board
of Directors

It is anticipated
that you will become a member of the Company’s Board of Directors promptly
following the commencement of your employment.

 

Upon termination
of your employment for any reason, you will be deemed to have automatically and
voluntarily resigned from the Company’s board of directors and from any and all
positions with any entities related to the Company, including affiliate, parent
or subsidiary corporations.  You further
agree to assist the Company with respect to such resignations by executing any
and all documents necessary to carry out such resignations.

 

Additional
Conditions

•                  As a condition of employment, you must
sign the New-Hire Proprietary Information, Inventions, Non-Competition and
Non-Solicitation Agreements on your start date. 
A copy is enclosed for your review.

 

•                  As a condition of employment, you must
complete the enclosed Application for Employment and return it as indicated
herein.

 

•                  All offers of employment are contingent
upon your ability to provide proof of eligibility to work in the United States
in advance of your start date.  Please
read and complete the enclosed Employment Eligibility Form.

 

This sets forth the
entire agreement among the parties regarding the terms of your employment.  The terms of your employment may not be
amended other than pursuant to a written agreement between you and the Company
that has been approved by the Board of Directors.

 

This offer will expire
on Tuesday, August 30, 2005.

 

Your start date is
expected to be Wednesday, September 14, 2005.

 

Sincerely,

 

	
  /s/ Navdeep S.
  Sooch

  	
   

  	
   

  
	
   

  	
   

  
	
  Navdeep S. Sooch

  	
   

  
	
  Chairman of the
  Board

  	
   

  
	
   

  	
   

  
	
  Agreed:

  	
   

  
	
   

  	
   

  
	
  /s/ Necip
  Sayiner

  	
   

  	
  August 30,
  2005

  	
   

  
	
  Necip Sayiner

  	
  Date:

  
					

 

dc:   Enclosures

 

cc:    Russ BrennanExhibit 10.1

 

AMENDMENT ONE TO

 

THE CHUBB CORPORATION

 

KEY EMPLOYEE DEFERRED
COMPENSATION PLAN (2005)

 

The Chubb Corporation Key Employee Deferred
Compensation Plan (2005) (the “Plan”) is hereby amended, effective as of September 8,
2005 as follows:

 

1.                                       Section 2.17 of the Plan is hereby amended
and restated in its entirety as follows:

 

Dividend Equivalents — “Dividend Equivalents” means an amount equal to the number of Units
in a Participant’s Deferred Compensation Account multiplied by the amount of
quarterly dividends payable to Company Stock shareholders for each share of
Company Stock.  The amount of Dividend
Equivalents on a payment date for a quarterly dividend on the Company’s Stock
shall be determined based on the number of Units in the Participant’s Deferred
Compensation Account as of the preceding Valuation Date.

 

2.                                       Section 7.07 of the Plan is hereby amended
to: (i) rename such section “Valuation of the Company Stock Unit
Account and Crediting of Dividend Equivalents,” (ii) delete the fourth
sentence thereof (related to the treatment of dividends), (iii) renumber
such section as Section 7.07(a), and (iv) add a new subsection “b”
at the end thereof which shall read in its entirety as follows:

 

b.                                      Dividend Equivalents shall be reflected by
crediting to a Participant’s Deferred Compensation Account an amount in cash
equal to the value of the Dividend Equivalents on the payment date for each
dividend payable to Company Stock shareholders. 
Amounts credited to a Participant’s Deferred Compensation Account in
respect of such Dividend Equivalents shall be deemed invested in the Investment
Funds in which a Participant’s Deferred Compensation Account is otherwise deemed
invested pursuant to Section 7.03 and shall be automatically allocated
among such Investment Funds in the proportion set forth in the Participant’s
Investment Funds election then in effect. 
Such portion of the Participant’s Deferred Compensation Account shall be
credited on each Valuation Date with an investment return from the date such amount
in respect of Dividend Equivalents was credited to

 

 

the Participant’s Deferred Compensation Account,
based on the investment return (gain or loss) of the Investment Funds in which
such portion is deemed to be hypothetically invested.

 

3.                                       Section 8.01(a) of
the Plan is hereby amended and restated in its entirety as follows:

 

All Deferral Amounts payable to a Participant that
are deemed invested in the Investments Funds, including amounts credited to the
Participant’s Deferred Compensation Account in respect of Dividend Equivalents
pursuant to Section 7.07 shall be paid in cash.

 

4.                                       Section 8.01(b) of
the Plan is hereby amended and restated in its entirety as follows:

 

Any Deferral Amount payable to a Participant that is
deemed invested in the Company Stock Unit Account shall be paid in Company
Stock issued under and subject to the terms and provisions of The Chubb
Corporation Long-Term Stock Incentive Plan (2004), or any successor plan
thereto, applicable to the form of Stock Based Compensation to which such
Deferral Amount related, with one share of Company Stock distributed for each
Unit credited to such Participant’s Company Stock Unit Account.  All fractional Units shall be payable in
cash.

 

5.                                       Section 8.02(a)(2) of
the Plan is hereby deleted in its entirety and Section 8.06(c) of the
Plan is hereby amended and restated in its entirety as follows:

 

Notwithstanding anything in
the Plan to the contrary, and notwithstanding the election(s) made by any
Participant on any Election Form(s) filed with the Committee, if a Participant
has a Termination of Employment, other than on account of “Retirement” (as
hereinafter defined), he or she shall be paid in a lump sum all of such
Participant’s Deferral Amounts on the first day of the seventh (7th)
month following such Termination of Employment. 
For purposes of the Plan, “Retirement” shall mean a Termination of Employment
other than for “Cause” (as hereinafter defined) at or after the Participant’s
normal retirement age or earliest retirement date, in each case as specified in
the Company’s Pension Plan.  For purposes
of the Plan, “Cause” shall mean the Company or any of its affiliates having “cause”
to terminate a Participant’s employment as defined in any existing award
agreement, employment agreement or any other agreement between such Participant
and the Company or any of its affiliates, or in the absence of

 

2

 

such an agreement as such term is defined in The
Chubb Corporation Long-Term Stock Incentive Plan (2004), or any successor plan
thereto.

 

If a Participant is a Key Employee and has a
Termination of Employment on account of Retirement, then notwithstanding any
Election Form(s) filed with the Committee by such Participant or anything in
the Plan to the contrary, no payment may be made (or begin in the case of
installments) to such Key Employee prior to the first day of the seventh (7th)
month following such Key Employee’s Termination of Employment on account of
Retirement.

 

Except
as provided herein, all other provisions of the Plan shall remain unchanged and
in full force and effect.

 

IN WITNESS WHEREOF, The Chubb Corporation has caused
this Amendment to the Plan to be duly executed this 8 day of September, 2005.

 

 

	
   

  	
  THE CHUBB CORPORATION

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ W. Andrew
  Macan

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Title:

  	
  Vice President,
  Corporate 

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Counsel and Secretary

  
									

 

3

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