Document:

NXP Management Equity Plan 2009

 Exhibit 10.24 

 

 

 STRICTLY PERSONAL 

NXP Management Equity Plan 2009 

Stock Option terms 2009 
  

			
	NXP Management Equity Plan	  	1 of 11

 Article 1 

Definitions 
 In these NXP
Management Equity Stock Option Plan Conditions the following definitions shall apply: 
  

					
	1. Board	 	:	  	the management board of KASLION;
			
	2. CEO	 	:	  	the chief executive officer from time to time of NXP;
			
	3. Change of Control	 	:	  	a sale, directly or indirectly, of Shares in KASLION in a transaction or series of related transactions resulting in the Initial Sponsors as hereinafter defined, and for each of
its members, their respective affiliates (a) together no longer holding, directly or indirectly, 50% or more of the Shares and other equity instruments issued from time to time by KASLION save as otherwise provided below or (b) the sale or
divestment of more than 50% of the assets of KASLION to a non-affiliate in a transaction or series of related transactions whereby the net proceeds of such asset sale are to be distributed to shareholders of KASLION, provided always in each case
that in the event of a Listing there shall only be a Change of Control if the Initial Sponsors or their respective affiliates together no longer own, directly or indirectly, 30% or more of the Shares and any other equity instruments issued from time
to time by KASLION;
			
	4. Conditions	 	:	  	the terms and conditions set out in this NXP Management Equity Stock Option Plan 2009;
			
	5. Date of Grant	 	:	  	the date at which a Stock Option is granted pursuant to these Conditions. The relevant Date of Grant with respect to any grant hereunder shall be determined by KASLION and the
Participant shall be informed on this;
			
	6. Depositary Receipt	 	:	  	the depositary receipt (certificaat van aandeel) issued by the Foundation in relation to each Share to be acquired by it upon the exercise of a Stock Option, which
depositary receipt is governed by Conditions of Administration (administratievoorwaarden) approved by the Board;
			
	7. Eligible Individual	 	:	  	means an employee of the NXP group or such other person as determined by the Board;
			
	8. Employing Company	 	:	  	any company within the NXP group of companies and such other company as NXP may from time to time designate or approve;
			
	9. Exercise Price	 	:	  	the price to be paid by the Participant to the Foundation upon exercising a Stock Option to enable it to subscribe for a Share and issue a Depositary Receipt to the Participant.
Such price will be EUR 0.10 for series 1 Stock Options; EUR 0.75 for series 2 Stock Options; EUR 1.50 for series 3 Stock Options; and EUR 2.00 for series 4 Stock Options. It being understood that, in order to avoid that Stock Options are being
granted “ in the money”, the respective Exercise Prices will be increased from time to time to avoid that the actual fair market value upon grant would exceed the Exercise Prices as referred to in the first sentence of this
provision.

  

			
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	10. Foundation	 	:	  	the Stichting Management Co-Investment NXP, a foundation (stichting) formed under the laws of The Netherlands, having its registered office (zetel) at Eindhoven and is
registered with the Chamber of Commerce under number 34256080;
			
	11. Grant	 	:	  	the instrument by which the Board grants a Stock Option to one or more Eligible Individuals;
			
	12. Initial Sponsors	 	:	  	 (a) KKR European Fund II, Limited Partnership;
  

(b) Silver Lake Partners II Cayman, L.P.;
  

(c) AlpInvest Partners CS Investments 2006 C.V.;
  

(d) Bain Capital IX, L.P.;
  

(e) Bain Capital Fund VIII-E, L.P.;
  

(f) Apax Europe V - A, L.P.;
  

(g) Apax Europe VI - A, L.P.;
  

(h) such other persons to whom those sponsors have syndicated part of their direct or indirect investment in the Investor as per January 1, 2007;
and
  
 (i) for each of the aforegoing persons, their respective affiliates;

			
	13. Investor	 	:	  	 KASLION Holding B.V., a private company with limited liability (besloten vennootschap met beperkte aansprakelijkheid),
incorporated under the laws of The Netherlands, having its seat (statutaire zetel) in Eindhoven, The Netherlands and its registered office at Jachthavenweg 118, 1081 KJ, Amsterdam, registered at the Chamber of Commerce under number

34253301;

			
	14. KASLION	 	:	  	KASLION Acquisition B.V.;
			
	15. Listing	 	:	  	the listing of any shares, in a form determined by KASLION, on a recognised stock exchange;
			
	16. NCC	 	:	  	nomination and compensation committee of the supervisory board of NXP;
			
	17. NXP	 	:	  	NXP B.V.;
			
	18. Participant	 	:	  	an individual who participates in the Plan and holds any Stock Options or Depositary Receipts under these Conditions;
			
	19. Plan	 	:	  	this NXP Management Equity Stock Option Plan 2009;

  

			
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	20. Sale	 	:	  	direct or indirect sale and transfer of Shares of the business to a third party not affiliated to one of the Initial Sponsors or a group company of NXP;
			
	21. Share	 	:	  	a common share in the capital of KASLION as further defined in KASLION’s articles of association;
			
	22. Stock Option	 	:	  	the conditional right granted by KASLION to an Eligible Individual to acquire one Depositary Receipt in relation to a Share to be issued by KASLION to the Foundation, subject to
these Conditions. The Stock Options may be granted in four series: series 1, series 2, series 3 and series 4;
			
	23. Vesting Date	 	:	  	means the vesting date ascribed to it in Article 3.

Article 2 

Grant of Stock Options 

Any Stock Options may be granted by the Board to an Eligible Individual, subject to the Conditions and any additional terms as may be imposed on Grant.
Any Stock Options offered to any such individual and the terms and conditions governing such Stock Options shall be deemed accepted by such individual with effect from the applicable Date of Grant in case KASLION has not received, in accordance with
a procedure established by KASLION, a notice of rejection of such Stock Options at a date determined by KASLION. 
 Article 3

 Vesting 
  

	1.	Except as otherwise provided in Article 3.2 and 3.3, Stock Options will vest as indicated in the Grant. Unvested or lapsed Stock Options cannot be exercised.

  

	2.	In case of a Change of Control, the Stock Options will be 100% vested (accelerated vesting). If in the event of a divestment of a Business Unit, being any of
Automotive & Identification, Home and MultiMarket Semiconductors, the Participant has not served notice of termination of employment upon a member of the NXP group nor has been served with notice of termination of employment by a member of
the NXP group, the Stock Options held by each such Participant employed within such Business Unit shall be 100% vested upon the time of the divestment. 

  

	3.	The CEO may, following consultation with the Investor, in individual cases, determine a vesting schedule for the relevant Stock Options more favourable for the relevant
Participant than would apply pursuant to paragraphs 1 or 2 of this Article 3. Under no circumstances shall the use of this right by the CEO or the approval granted by the Investor create or imply rights for any other Participant.

 Article 4 

Exercise of Stock Options 
  

	1.	A Participant may exercise (part of) his vested Stock Options only upon a Sale or Change of Control. The Participants shall be notified in writing by the Board of the
occurrence of such Sale or Change of Control. In no event shall there be any obligation to deliver any Depositary Receipts to a Participant prior to such a Sale or Change of Control. Stock Options not exercised upon a Change of Control shall lapse
automatically on a Change of Control. 

  

			
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	2.	In order to exercise Stock Options, the Participant must notify KASLION in accordance with a procedure determined by KASLION. 

The notice by the Participant shall state: 
  

	 	•	 	 the Date of Grant of the Stock Options he wishes to exercise; 

 

	 	•	 	 the number of Stock Options to be exercised; and 

  

	 	•	 	 whether Depositary Receipts to be obtained upon such exercise: 

 

	 	(i)	be sold, on behalf of the Participant as soon as possible. Upon such sale, the aggregate revenue of the Depositary Receipts sold upon exercise of the Stock Options less
the respective Exercise Prices multiplied by the number of such Stock Options, and further costs and taxes in accordance with Articles 7, 11.4 and 12, will be paid to the Participant in accordance with a procedure determined by KASLION, subject to
Articles 10 and 11; or 

  

	 	(ii)	be delivered to the Participant as provided for in the Articles 4.3 and 4.4 hereof, subject to Articles 10 and 11. 

In case the Participant elects to have the Depositary Receipts to be delivered to him, his notice shall be accompanied by the payment in
full of the Exercise Price for the respective series of Stock Options exercised, multiplied by the number of Stock Options so being exercised, and costs and taxes as stipulated in Articles 7, 11.4 and 12. Such payment shall be made: (a) in
cash, (b) through simultaneous sale through the Foundation of Depositary Receipts, or the underlying Shares of such Depositary Receipts, acquired on exercise, subject to it being permitted under the applicable regulations, (c) through
additional methods prescribed by KASLION or (d) by a combination of any such method. 
  

	3.	Subject to these Conditions, if the Participant elects Depositary Receipts to be delivered to him upon exercise as provided in Article 4.2 (ii), KASLION will, following
receipt by the Foundation of the full Exercise Price, issue to the Foundation the Shares underlying the exercised Stock Options and procure that the Foundation delivers to the relevant Participants the Depositary Receipts on or as soon as reasonably
practicable after the exercise of a Stock Option. In no event shall KASLION have any obligation to deliver any Depositary Receipts to a Participant prior to the exercise of any Stock Options. 

 

	4.	Each Participant shall comply with any applicable “insider trading” laws and regulations. 

Article 5 

Non-transferability 
 The
Stock Options are strictly personal and may not be assigned, transferred, pledged, hypothecated, or otherwise encumbered or disposed of in any manner. Depositary Receipts may not be transferred, other than according to the Conditions of
Administration, the exercise of the drag-along or tag-along rights, respectively, in Article 10, or to the Investor. For the avoidance of doubt, in case of death of the Participant all vested Stock Options and all Depositary Receipts held by such
Participant at the date of death shall pass to such Participant’s heirs or legatees in accordance with applicable inheritance laws. The Participant may not engage in any transactions on any exchange on the basis of any Stock Option or any
Depositary Receipt. Any violation of the terms of this Article 5 in relation to Stock Options will cause all Stock Options to become immediately null and void without further notice and without the Participant being entitled to any compensation. Any
violation of the terms of Article 5 in relation to Depositary Receipts will render said transaction null and void without further notice and without the Participant being entitled to any compensation. 

 

			
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 Article 6 

Capital Adjustments in corporate events 

KASLION shall, after approval of the NCC, make such equitable adjustments to the number of Stock Options, the Exercise Price for the respective series,
the number or kind of Shares to be issued on exercise of Stock Options or the number or kind of Depositary Receipts, or replace such Shares or Depositary Receipts by shares or depositary receipts for shares in the capital of a KASLION group company,
as is appropriate to reflect corporate events such as a stock-dividend or stock-split, a recapitalization, a merger, a consolidation, a spin-off, a combination or exchange of shares or other significant corporate change, or any distribution of
reserves to holders of Shares. 
 Article 7 

Costs and Taxes 
  

	1.	All costs of delivering any Depositary Receipts, or Shares underlying such Depositary Receipts, under these Conditions to a Participant and any other costs connected
with the Depositary Receipts, or Shares underlying such Depositary Receipts, shall be borne by the Participant. 

  

	2.	Any and all taxes, duties, levies, charges or social security contributions (“Taxes”) which arise under any applicable national, state, local or
supra-national laws, rules or regulations, whether already effective on the Date of Grant of any Stock Options or becoming effective thereafter, and any changes or modifications therein and termination thereof which may result for the Participant in
connection with these Conditions (including, but not limited to, the grant of the Stock Options, the ownership of the Stock Options and/or the delivery of any Depositary Receipts under these Conditions, the ownership and/or the sale of any
Depositary Receipts acquired under these Conditions) shall be for the sole risk and account of the Participant. 

  

	3.	KASLION and any other Employing Company shall have the right to deduct or withhold (or cause to be deducted or withheld) from any salary payment or other sums due by
KASLION or any Employing Company to the Participant, or requiring the Participant or beneficiary of the Participant, to pay to KASLION or any Employing Company as indicated by KASLION an amount necessary to settle any Taxes and any costs determined
by KASLION necessary to be withheld in connection with these Conditions (including, but not limited to, the grant of the Stock Options or the delivery of any Depositary Receipts under these Conditions). 

 

	4.	KASLION shall not be required to deliver any Depositary Receipts and KASLION may delay (or cause to be delayed) the transfer of any Depositary Receipts to a Participant
until KASLION has received an amount, or the Participant has made such arrangements required by KASLION necessary to satisfy any withholding of any Taxes and any costs to be borne by the Participant in connection with these Conditions as determined
by KASLION. 

  

			
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 Article 8 

Termination of Employment 
  

	1.	Notwithstanding anything herein to the contrary and except as otherwise provided in Articles 8.2, 8.3. or 8.4 hereof, if a Participant 

 

	 	(a)	dies, or becomes permanently disabled (as defined under the statutory local social security regulations; or 

 

	 	(b)	retires in accordance with the relevant NXP group member’s retirement scheme; 

such Participant, or his heirs or legatees in accordance with Article 5, upon a Change of Control may exercise all Stock Options, and upon
a Sale may exercise a pro rata part of his Stock Options, in each case such Stock Options which are vested at the time of the termination of the employment with the Employing Company, in accordance with Article 4, and subject to Articles 10 and 11
hereof. All unvested Stock Options shall be forfeited effective as of the date of termination of the employment without the Participant being entitled to any compensation or any obligation on the part of KASLION or any Employing Company. 

 

	2.	Notwithstanding anything herein to the contrary and except as otherwise provided in Articles 8.1, 8.3 and 8.4 hereof, if a Participant 

 

	 	(a)	is dismissed for urgent reasons as defined in article 7:678 of the Dutch Civil Code (or the equivalent thereof in other jurisdictions if Dutch law is not applicable to
his employment); 

  

	 	(b)	voluntarily resigns and subsequently, in the two (2) year period following such resignation, directly or indirectly and in any capacity whatsoever engages in any
activities in competition with the activities of any member of the Group; or 

  

	 	(c)	breaches any of the obligations imposed by or pursuant to the Conditions and the Grant; 

such Participant’s vested and unvested Stock Options shall be forfeited effective as of the date of termination of the employment
without the Participant being entitled to any compensation or any obligation on the part of KASLION or any Employing Company. 
  

	3.	Notwithstanding anything herein to the contrary and except as otherwise provided in Articles 8.1, 8.2. and 8.4 hereof, and subject to Articles 10 and 11, if a
Participant ceases to be an employee of any member of the NXP group as a result of facts or circumstances other than those mentioned in Articles 8.1 and 8.2, 

 

	 	•	 	 all his Stock Options, unvested upon termination of the employment, shall be forfeited effective as of the date of termination of the employment
without the Participant being entitled to any compensation or any obligation on the part of KASLION or any Employing Company; 

  

	 	•	 	 upon a Sale or Change of Control, the Participant receives a cash-payment for the Stock Options vested upon the termination of the employment with an
Employing Company, it being understood that in the event of a Sale this payment will only relate to a pro rata part of the Stock Options as stipulated in Article 10, such cash-payment based on the lower of: 

 

	 	(a)	the Fair Market Value, as determined in accordance with Article 9, of the Depositary Receipts upon the end of the quarter prior to the quarter in which the employment
was terminated minus the respective Exercise Prices multiplied by the number of such Stock Options and further costs and taxes in accordance with Articles 7, 11.4 and 12, and 

 

	 	(b)	the fair market value of the Depositary Receipts upon a Sale or Change of Control, this fair market being calculated and determined by, and at the sole discretion of,
the Board of KASLION, minus the respective Exercise Prices multiplied by the number of such Stock Options and further costs and taxes in accordance with Articles 7, 11.4 and 12. 

 

			
	NXP Management Equity Plan	  	7 of 11

 The amount due will be transferred to a bank account designated by the Participant as soon
as reasonably practical upon a Sale or Change of Control. 
  

	4.	The CEO may, following approval by the NCC, in individual cases including divestment and Sale scenario’s, determine a price for the relevant Depositary Receipts,
or other conditions applicable to the Stock Options or Depositary Receipts, more favourable for the relevant Participant than would apply pursuant to these Conditions. Under no circumstances shall the use of this right by the CEO or the approval
granted by the NCC create or imply rights for any other Participant. 

 Article 9 

Fair Market Value 
  

	1.	Fair Market Value shall be determined by the Board, subject to the right of the NCC to review and approve same, and in accordance with the following:

  

	 	(i)	In any period before a Listing: the pro rata portion of the value of the entire share capital of KASLION which is arithmetically attributable to the Shares underlying
the relevant Depository Receipts, determined on a fully diluted basis taking into account all options and other rights to receive any shares in the capital of KASLION, if any, existing at the relevant time, whereby the value of the entire issued
share capital of KASLION shall be determined in accordance with both the ‘income approach’ and the ‘market approach’, supported by an analysis conducted by an external independent qualified valuation firm, as follows:

  

	 	•	 	 Discounted Cash Flow (DCF) analysis is a valuation technique that provides an estimation of the value of based on the cash flows that an asset or
business can be expected to generate 

  

	 	•	 	 Comparable Companies Approach is a form of the market approach that provides an estimation of the value of a business based on the prevailing market
prices of comparable companies like Texas Instruments Inc., Infineon Technologies AG, STMicroelectronics NV, National Semiconductor Corp., Microchip Technology Inc., ON Semiconductor Corp., Atmel Corp., Fairchild Semiconductor International Inc.,
Analog Devices Inc.; and 

  

	 	(ii)	In any period after a Listing: the weighted average of the closing stock prices on the last consecutive 15 trading days immediately preceding the relevant time on the
stock exchange on which the Listing has occurred. If the Listing has occurred on more than one stock exchange, the closing stock price on the stock exchange on which the highest volume of shares has been traded in the aggregate of the relevant 15
trading days shall be used. 

  

			
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 Article 10 

Drag-along right and tag-along right 
  

	1.	In the event of a Sale or Change of Control a Participant has the right to exercise his Stock Options and in the event of a Sale a Participant has the right to exercise
his vested Stock Options, all in accordance with article 4 of these Conditions. If the Participant elects Depositary Receipts to be delivered to him, the Participant is aware and agrees that the Investor has the right, in relation to any Sale or
Change of Control to require that the Foundation sells to the relevant buyer a percentage of the Shares held by it equal to the percentage of Shares sold by the Investor, on customary terms and conditions and for a consideration per Share equal to
that received by the Investor. 

  

	2.	In the event that the Foundation sells and transfers any Shares, the Participant having exercised (part of) his Stock Options shall receive from the Foundation in
respect of each of his Depositary Receipts corresponding to these Shares the net proceeds of such sale received by the Foundation as set out in the Conditions of Administration. 

 

	3.	Subject to Articles 4, 8 and 11, each Participant having exercised (part of) his Stock Options has the right, in relation to any Sale by the Investor, to demand to be
given the opportunity to sell that number of Depository Receipts held by such Participant determined by multiplying that number of his Depository Receipts by a percentage equal to the percentage of all the Investor’s Shares to be so sold, and
on customary terms and conditions and for a consideration per Share equal to that received by the Investor. 

  

	4.	Where Articles 10.1 and 10.3 refer to “customary terms”, this implies - among other things - that the Foundation shall on behalf of the Participants having
exercised (part of) their Stock Options, make such representations and warranties concerning the relevant underlying business as are customary and usual in the context of the relevant transaction, subject to the CEO being allowed to participate in
the negotiation of such representations and warranties and to make fair disclosure against the same and on the basis furthermore that any liability under such representations and warranties shall be pro rata the number of shares sold for their
benefit. 

 Article 11 

Listing 
  

	1.	It shall be in the sole discretion of the Investor when and in which form a Listing takes place. Participants are obliged to cooperate and give all consents and take
all other measures reasonably requested by the Investor in this respect and to enter into such customary lock-up agreement as the Investor may reasonably request on the basis of advice received from the investment bank(s) acting as lead manager(s)
for that Listing or as may be requested by the relevant underwriter(s) (“Lock-Up”), such request to be made after Investor has consulted with the Board as to the views of the Participants (such consultation being without prejudice to the
obligation of the Participants to agree to such a request by Investor) and to comply with all applicable rules on insider trading. 

  

	2.	Despite anything to the contrary in these Conditions, in the event of a Listing by way of a primary offering (i.e. listing of newly issued securities only), no
Participant shall have any right to request the sale of any of his Depositary Receipts or any of the underlying Shares or any of the securities into which they may have been converted. 

 

			
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	3.	In the event of a sale of shares on or following a secondary offering, the sale of listed securities must be effected in compliance with any applicable Lock-up, other
customary restrictions as may be requested by the underwriters and any applicable insider trading rules. 

  

	4.	Participants, having exercised (part of) their Stock Options, are entitled to all sales proceeds relating to such a sale by the Foundation of Shares, net of the
relevant pro rata portion of any Permitted Expenses and net of any taxes related to such sale in respect of which there is a withholding obligation, all in accordance with Article 12. Permitted Expenses means any related transaction costs, fees and
expenses, including without limitation all costs, fees and expenses incurred in respect of lawyers, accountants, investment banks, underwriters, debt providers, other financiers, consultants, and other advisors irrespective of the entity engaging
them and all out of pocket expenses paid for or payable to third parties by the Investor, any of the Initial Sponsors or any of their respective affiliates and excluding only any fees payable to any of the Initial Sponsors or their respective
affiliates such as success fees and advisory fees. 

 Article 12 

Net proceeds 
  

	1.	In any circumstances when any payment is due to a Participant, this shall always be paid net of the pro rata portion of Permitted Expenses and net of any taxes.

  

	2.	Where consideration other than cash is received in respect of a transaction triggering the payment to a Participant, KASLION shall have the choice, in its sole
discretion, to cause the payment due to the Participant to be settled either in cash or in the same form of consideration as was received by the Investor, provided that if the latter includes securities or other assets that are not Readily
Marketable Securities, KASLION shall undertake to put in place such arrangements as may be necessary to ensure that the relevant Participants are able to dispose of such securities or other assets at the same time and on the same terms as the
Investor is able to dispose of such securities or other assets as it may hold to an unaffiliated third party (unless the Participants have agreed with the party paying the consideration to keep all or a portion of said securities for a period of
time). Readily Marketable Securities means securities that are listed on a recognized investment exchange and may be immediately disposed of through the relevant exchange. 

Article 13 

General Provisions 
  

	1.	The Board, following approval by the NCC, shall have the authority to interpret these Conditions, to establish, amend, and rescind any rules and regulations relating to
these Conditions, to determine the terms and conditions of any agreements entered into hereunder, to make all other determinations necessary or advisable for the administration of these Conditions, and to determine other conditions applicable to the
delivery of Depositary Receipts, or shares underlying such Depositary Receipts, pursuant to and cash-payment for the Stock Options more favourable for the relevant Participant than would apply pursuant to the Conditions. The Board may delegate the
authority to practice administrative and operational functions with respect to the Conditions to officers or employees of subsidiaries of NXP and to service providers. Under no circumstances shall the use of the rights by the Board under this
Article 13 create or imply rights for any other Participant. 

  

			
	NXP Management Equity Plan	  	10 of 11

	2.	No Participant shall have any rights or privileges of holders of depositary receipts (including the right to receive dividends and to vote) with respect to Depositary
Receipts to be delivered pursuant to the exercise of Stock Options until such Depositary Receipts are actually delivered to such Participant in accordance with these Conditions. 

 

	3.	The (value of) Stock Options granted to, or Depositary Receipts, or underlying Shares, acquired by, a Participant pursuant to such Stock Option under these Conditions
shall not be considered as compensation in determining a Participant’s benefits under any benefit plan of an Employing Company, including but not limited to, group life insurance, long-term disability, family survivors, or any retirement,
pension or savings plan. 

  

	4.	Nothing contained in these Conditions or in any grant made or agreement entered into pursuant hereto shall confer upon any Participant any right to be retained in
employment with any Employing Company, or to be entitled to any remuneration or benefits not set forth in these Conditions or interfere with or limit in any way with the right of any Employing Company to terminate such Participant’s employment
or to discharge or retire a Participant at any time. 

  

	5.	If a provision of these Conditions is deemed illegal or invalid, the illegality or invalidity shall not affect the remaining parts of these Conditions, these Conditions
shall be construed as if the illegal or invalid provisions had not been included in these Conditions. 

  

	6.	Where the context requires, words in either gender shall include also the other gender. 

 

	7.	These Conditions shall be governed by and construed in accordance with the laws of The Netherlands. Any dispute arising under or in connection with these Conditions
shall be settled by the competent courts in Amsterdam, The Netherlands, subject to appeal (hoger beroep) and supreme court appeal (cassatie). 

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	NXP Management Equity Plan	  	11 of 11Conditions of administration of the Stichting Management Co-Investment NXP

 Exhibit 10.25 

CONDITIONS OF ADMINISTRATION 

STICHTING MANAGEMENT CO-INVESTMENT NXP 
  

	1.	DEFINITIONS 

  

	1.1	The following definitions shall apply in these Conditions of Administration: 

 

			
	Affiliate	 	means, in relation to the Initial Sponsors:
		
		 	 (a)     any member of the relevant Initial Sponsor’s group (groepsmaatschappij as such
concept is defined in article 2:24b of the Dutch Civil Code);

		
		 	 (b)     any fund which is advised by, or the assets of which are managed (whether solely or jointly
with others) from time to time by, the relevant Initial Sponsor or any member of that Initial Sponsor’s group (groepsmaatschappij);

		
		 	 (c)     any fund of which that relevant Initial Sponsor, any member of that Initial Sponsor’s
group (groepsmaatschappij), or that Initial Sponsor’s general partner, trustee, nominee, manager or adviser, is a general partner, trustee, nominee, manager or adviser;

		
		 	 (d)     any fund which is advised by, or the assets of which are managed (whether solely or jointly
with others) from time to time by, the relevant Initial Sponsor’s general partner, trustee, nominee, manager or adviser; or

		
		 	 (e)     any direct or indirect parent undertaking of the relevant Initial Sponsor’s or any
direct or indirect subsidiary undertaking of that parent;

		
	Available Receipts	 	has the meaning given to it in Article 2.2;
		
	Available Shares	 	has the meaning given to it in Article 2.1;
		
	Board	 	means the management board (bestuur) of the Foundation;
		
	 Board of

Management
	 	means the board from time to time of managing directors (directie) of NXP B.V. a private company with limited liability (besloten vennootschap met beperkte
aansprakelijkheid), incorporated under the laws of The Netherlands, having its seat (statutaire zetel) in Eindhoven, The Netherlands;
		
	Business Day	 	means a day other than a Saturday, Sunday or public holiday in The Netherlands;

 

 Page 1 of 17 

			
	Business Unit	 	means any of the four constituent business units of the Group known as;
		
		 	 (a)     Mobile & personal

		
		 	 (b)     Multi Market Semiconductors;

		
		 	 (c)     Automotive & Identification; and

		
		 	 (d)     Home;

		
	Call Option	 	has the meaning ascribed thereto in Article 5.1;
		
	Cash	 	means, at any time, and determined on a consolidated basis and in accordance with the Group accounting policies, cash as recorded in the accounting records of the relevant member
of the Group and to which members of the Group are alone beneficially entitled (excluding for the avoidance of doubt any cash held by any foundations) but only to the extent that:
		
		 	 (a)     repayment of that cash is not contingent on the prior discharge of any other indebtedness of
any member of the Group or of any other person whatsoever or on the satisfaction of any other condition relating to the performance of any obligation by any member of the Group;

		
		 	 (b)     the relevant member of the Group has not created any Encumbrance over that cash;
and

		
		 	 (c)     such cash is capable of being applied or made available for application in repayment or
prepayment of existing indebtedness of the members of the Group (less any material costs or expenses or withholding taxes which may be incurred by any member of the Group if such cash were to be so applied), and excluding with respect to
consolidated but not wholly owned subsidiaries, such as Jilin NXP Semiconductors Co Ltd and Systems on Silicon Manufacturing Company Pte Ltd, an amount equal to the Cash of such subsidiary determined as aforesaid multiplied by the percentage of the
equity of such subsidiary which is not directly or indirectly owned by the Company.

		
		 	In determining Cash there shall be no double counting;
		
	CEO	 	means the chief executive officer from time to time of NXP B.V.;

  

 Page 2 of 17 

			
		
	Change of Control	 	means:
		
		 	 (a)     a sale, directly or indirectly, of Shares in the Company in a transaction or series of
related transactions resulting in the Initial Sponsors together no longer owning, directly or indirectly, 50% or more of the Shares and other equity instruments issued from time to time by the Company; or

		
		 	 (b)     the sale or divestment of more than 50% of the assets of the Group to a non-Affiliate in a
transaction or series of related transactions whereby the net proceeds of such asset sale, subject to existing contracts, is to be distributed to Shareholders,

		
		 	provided always in each case that after a Listing there shall only be a change of control if the Initial Sponsors or their respective Affiliates together no longer own, directly
or indirectly, 30% or more of the Shares and other equity instruments issued from time to time by the Company;
		
	Company	 	means KASLION Acquisition B.V., a private company with limited liability (besloten vennootschap met beperkte aansprakelijkheid), incorporated under the laws of The
Netherlands, having its seat (statutaire zetel) in Eindhoven, The Netherlands, registered at the Chamber of Commerce under number 34253298;
		
	Completion	 	means the date of completion by the Company of the transaction set out in the stock purchase agreement dated 28 September 2006 between Koninklijke Philips Electronics N.V., NXP
B.V. and the Company;
		
	Conditions of Administration	 	means these terms and conditions (administratievoorwaarden) governing the Depositary Receipts and established in accordance with article 12 of the articles of association
of the Foundation, as validly amended or supplemented from time to time;
		
	Cost	 	means, in relation to any Depositary Receipt the amount paid for such Depositary Receipt by the relevant DRH;
		
	Deed of Transfer	 	means a deed of transfer of Depositary Receipts in the form approved by the Supervisory Board from time to time;
		
	Depositary Receipt	 	means the depositary receipt (certificaat van aandeel ) issued by the Foundation in relation to each Share acquired by it, which depositary receipt is governed by these
Conditions of Administration (administratievoorwaarden);
		
	DRH	 	means the holder of one or more Depositary Receipts;

  

 Page 3 of 17 

			
	Encumbrance	 	means a charge, pledge, usufruct, lien, option, restriction, right of pre-emption, claim, third party right or interest or other encumbrance or security interest of any kind, or
any type of preferential agreement (including, without limitation, title transfer and retention arrangements) having a similar effect and “Encumber” shall mean the creation of an Encumbrance;
		
	Executive	 	means an employee of any member of the Group designated eligible to become a DRH by:
		
		 	 (a)     insofar as it concerns a member of the Board of Management: the Supervisory Board upon the
initial proposal of the CEO; and

		
		 	 (b)     insofar as it concerns any other employee: the CEO acting in his
discretion;

		
	Executive Loan	 	has the meaning ascribed to it in Article 3.1
		
	Exercise Window	 	has the meaning ascribed to it in Article 5.2;
		
	Exit	 	means a Sale resulting in a Change of Control;
		
	Fair Market Value	 	means fair market value determined in accordance with Article 7;
		
	Foundation	 	means Stichting Management Co-Investment NXP, a foundation (stichting) formed under the laws of The Netherlands, having its registered office (zetel) at Eindhoven
and its registered with the Chamber of Commerce under number 34256080;
		
	Group	 	means the Company, its direct and indirect subsidiaries from time to time within the meaning of article 2:24a of the Dutch Civil Code and those other group companies of the
Company from time to time within the meaning of article 2:24b of the Dutch Civil Code the results of which the Company is required to consolidate when preparing its group financial statements, including the Crolles alliance but excluding for the
avoidance of doubt any direct or indirect shareholder of the Company;
		
	Initial Sponsors	 	means:
		
		 	 (a)     KKR European Fund II, Limited Partnership;

		
		 	 (b)     Silver Lake Partners II Cayman, L.P.;

		
		 	 (c)     AlpInvest Partners CS Investments 2006 C.V.;

		
		 	 (d)     Bain Capital IX, L.P.;

 

 Page 4 of 17 

			
		 	 (e)     Bain Capital Fund VIII-E, L.P.;

		
		 	 (f)      Apax Europe V - A, L.P.;

		
		 	 (g)     Apax Europe VI - A, L.P.;

		
		 	 (h)     such other persons to whom those sponsors syndicate part of their direct or indirect
investment in the Investor within 90 days after Completion; and

		
		 	 (i)      for each of the aforegoing persons, their respective Affiliates;

		
	Investor	 	means KASLION Holding B.V., a private company with limited liability (besloten vennootschap met beperkte aansprakelijkheid), incorporated under the laws of The
Netherlands, having its seat (statutaire zetel) in Eindhoven, The Netherlands and its registered office at Jachthavenweg 118, 1081 KJ, Amsterdam, registered at the Chamber of Commerce under number 34253301;
		
	Listing	 	means the listing of shares of the Company on a recognised stock exchange;
		
	LTM	 	means last twelve months;
		
	Lock-up	 	has the meaning ascribed thereto in Article 9;
		
	MEP Documents	 	means the documents that together implement the participation of the Executives in the capital of the Company, consisting of these Conditions of Administration, the articles of
association of the Foundation, the Shareholders Agreement, the Option terms and, in relation to each DRH, the Deed of Transfer signed by that DRH;
		
	Permitted Expenses	 	means any related transaction costs, fees and expenses, including without limitation all costs, fees and expenses incurred in respect of lawyers, accountants, investment banks,
underwriters, debt providers, other financiers, consultants, and other advisors irrespective of the entity engaging them and all out of pocket expenses paid for or payable to third parties by the Investor, any of the Initial Sponsors or any of their
respective Affiliates and excluding only any fees payable to any of the Initial Sponsors or their respective Affiliates such as success fees and advisory fees;
		
	Readily Marketable Securities	 	means securities that are listed on a recognised investment exchange and may be immediately disposed of through the relevant exchange;

 

 Page 5 of 17 

			
	Qualified Leaver A	 	has the meaning ascribed thereto in Article 6.1.1;
		
	Qualified Leaver B	 	has the meaning ascribed thereto in Article 6.1.2;
		
	Qualified Leaver C	 	has the meaning ascribed thereto in Article 6.1.3;
		
	Reference Date	 	means, in relation to a DRH, the date of payment by such DRH to the Investor, the Foundation or the relevant transferor (as the case may be) of an amount equal to the Cost of the
Depositary Receipts subscribed for by or sold to that DRH;
		
	Relevant Event	 	means in relation to a DRH:
		
		 	 (a)     the termination of the employment of a DRH with a member of the Group;
or

		
		 	 (b)     a material breach by a DRH of the DRH’s obligations under any of the MEP Documents; or

		
		 	 (c)     in the case of the DRH who is not an Executive, the relevant DRH no longer meeting the
qualifications imposed in his Deed of Transfer.

		
	Relevant Percentage	 	has the meaning ascribed thereto in Article 6.1;
		
	Reserved Pool	 	has the meaning ascribed thereto in Article 2.2;
		
	Sale	 	means the direct or indirect sale and transfer of Shares or assets of the Business to a third party not affiliated to one of the Initial Sponsors or a Group
Company;
		
	Share	 	means an ordinary share in the share capital of the Company;
		
	Shareholder	 	means any holder of Shares;
		
	Shareholders Agreement	 	means the shareholders agreement dated 29 September 2006 between the Investor, Koninklijke Philips Electronics N.V. and the Foundation, as amended by any subsequent agreements
between the above-mentioned parties;
		
	Supervisory Board	 	means the board of supervisory directors (raad van commissarissen) of NXP B.V. from time to time;
		
	Transferor	 	has the meaning ascribed thereto in Article 5.7;

  

	1.2	In these Conditions of Administration: 

  

	 	1.2.1	a reference to a document is a reference to that document as modified or replaced from time to time; 

 

 Page 6 of 17 

	 	1.2.2	a reference to a “person” includes a reference to a body corporate (rechtspersoon) and any other legal entity; 

 

	 	1.2.3	the term “subsidiary” of a company shall mean a legal entity with respect to which that company is able to direct, immediately or through one or more
subsidiaries, (i) the exercise of more than half of the votes at a general meeting of shareholders, (ii) the appointment of more than half of the members of the management board (if any), or (iii) the appointment of more than half of
the members of the supervisory board (if any); 

  

	 	1.2.4	references to the singular include a reference to the plural and vice versa, and reference to the masculine include a reference to the feminine and neuter and vice
versa; 

  

	 	1.2.5	references to Articles, unless the context otherwise requires, are references to Articles of these Conditions of Administration; 

 

	 	1.2.6	wherever the word “include”, “includes, or “including” is used in this Agreement, it shall be deemed to be followed by the words “without
limitation”; and 

  

	 	1.2.7	references to any gender include each other gender. 

  

	1.3	These Conditions of Administration supplement the articles of association of the Foundation. In the event there is a conflict between any provision of the articles of
association of the Foundation and a provision of these Conditions of Administration, these Conditions of Administration shall prevail. 

  

	2.	AVAILABLE SHARES AND DEPOSITARY RECEIPTS, RESERVED POOL, PRICE, LOAN AND DRH’S 

 

	2.1	The total number of Shares available for issue by the Company to the Foundation under the MEP Documents, amounts to 433,500,000 (12,000,000 plus 421,500,000) Shares,
representing a paid-up ordinary share capital amount of EUR 4,215,000 and in aggregate nine point two percent (9.2%) of the fully diluted share capital of the Company post the date of launching the NXP Stock Option Plan 2009 (taking into
account the Stock Options to be granted under this NXP Stock Option Plan 2009, and taking into account the still outstanding Stock Options granted under previous plans)(the “Available Shares”), all without prejudice to
Article 10 and 11.3. 

  

	2.2	The Foundation shall issue one Depositary Receipt for every Share it holds in trust (ten titel van beheer), numbered in the same manner as the Share
against which it is issued and transfer to the persons referred to in Article 2.6. Accordingly, the total number of Depository Receipts available for allocation and transfer to the Executives will in the aggregate represent nine point two
(9.2%) of the fully diluted share capital of the Company post the date of launching the NXP Stock Option Plan 2009 (taking into account the Stock Options to be granted under this NXP Stock Option Plan 2009, and taking into account the still
outstanding Stock Options granted under previous plans) (the “Available Receipts”). 

  

 Page 7 of 17 

 Out of the Available Receipts, a pool (the “Reserved Pool”)
shall be reserved for allocation to new Executives recruited by a member of the Group, new Executives joining the group as a result of an acquisition by a member of the Group and existing employees promoted to Executive level after Completion.
Depository Receipts forming part of the Reserved Pool from time to time will be allocated in accordance with Article 2.3. 
  

	2.3	Other than upon the exercise of stock options by Participants in the NXP Management Equity Program 2007 and the NXP Stock Option Plan 2009, the Available Receipts
(including those in the Reserved Pool) shall be allocated by: 

  

	 	2.3.1	insofar as it concerns a member of the Board of Management: the Supervisory Board upon the initial proposal of the CEO; 

 

	 	2.3.2	insofar as it concerns any other Executive: the CEO acting in his discretion; and 

 

	 	2.3.3	insofar as it concerns a non-Executive: the CEO with the prior written approval of the Supervisory Board, 

and transferred in accordance with the allocation set out above. 

 

	2.4	A person can only acquire Depositary Receipts if such person: 

  

	 	2.4.1	is a Participant in the NXP Management Equity Program 2007 or the NXP Stock Option Plan 2009 exercising his conditional rights to acquire Depositary Receipts in
relation to Shares to be issued to the Foundation (“Options”); or 

  

	 	2.4.2	is an Executive; or 

  

	 	2.4.3	is the Investor or, upon designation by the Investor, the Foundation or a Group Company, holding as a warehouse pending allocation in accordance with these Conditions
of Administration; or 

  

	 	2.4.4	is another person designated by the CEO with the prior written approval of the Supervisory Board. 

 

	2.5	Other than upon exercising an Option under the NXP Management Equity Program 2007 or the Stock Option Plan 2009 whereby a Participant pays to the Foundation the price
to be paid by the Participant to the Foundation upon exercising an Option (the “Exercise Price”) to enable it to subscribe for a Share and issue a Depositary Receipt to the Participant, upon the relevant Depositary
Receipts being allocated in accordance with Article 2.3, they shall be transferred by the Investor to the relevant person for a consideration as determined in accordance with Article 2.6. Such consideration shall be paid by the Executive to the
Investor in cash upon transfer of the relevant Depositary Receipts to the Executive save as otherwise arranged pursuant to clause 3. 

  

	2.6	Depositary Receipts shall only be validly transferred through a Deed of Transfer in a form approved by the Supervisory Board. 

 

	2.7	The purchase price payable for Depositary Receipts shall be: 

  

	 	2.7.1	For Depositary Receipts issued upon exercise of Options under the NXP Management Equity Program 2007 or the Stock Option Plan 2009: the respective Exercise Price; and

  

 Page 8 of 17 

	 	2.7.2	For Depositary Receipts transferred by the Investors: the Fair Market Value of the underlying Shares corresponding to such Depositary Receipts.

  

	2.8	Any payment to be made by an Executive under the MEP Documents shall be made in cash to such bank account in the name of the Foundation or the Investor as the
Foundation and the Investor, respectively, may direct. 

  

	2.9	Where a Depositary Receipt is jointly owned, the joint owners can only be represented towards the Foundation by an individual empowered to do so by the joint owners
acting together in writing. Once such written power of attorney is received by the Foundation, the Foundation may, regardless of the terms of the power of attorney, rely on its continued validity until the same is revoked by a written instrument
signed by each of the joint owners and delivered to the Foundation. 

  

	3.	EXECUTIVE LOAN 

  

	3.1	If the Executive so requests and the Supervisory Board and the Investor approve, the consideration payable by the Executive for the purchase of his Depositary Receipts
from the Investor may remain outstanding by way of a loan to the relevant Executive (the “Executive Loan”). 

  

	3.2	The principal amount of the Executive Loan outstanding from time to time will bear interest at an annual rate that is equal to the minimum interest for employee loans
in the relevant jurisdictions from time to time, such interest to be capitalised annually and added to the principle amount of the loan. 

  

	3.3	Irrespective of the amount due to the DRH in the relevant circumstances, the Executive Loan shall be repayable upon the earlier of: 

 

	 	3.3.1	The DRH receiving or being entitled to receive the consideration for the sale hereunder of his or her Depositary Receipts prior to an Exit (including pursuant to the
Call Option and including where repayment is set off with the consideration due to the DRH contemplated in Article 6.6), in which case the Executive shall repay a pro rata portion of the Executive Loan and accrued but unpaid interest thereon
according to the ratio that the number of Depositary Receipts sold bears to the total number of Depositary Receipts held by him immediately prior to such sale; 

 

	 	3.3.2	an Exit wherein drag-along or tag-along rights under Article 8 are exercised and Shares are sold for which Depositary Receipts have been issued to the relevant
Executive, in which case the Executive shall repay a pro rata portion of the Executive Loan and accrued but unpaid interest thereon according to the ratio that the number of such Shares sold by the Foundation bears to the total number of
Depositary Receipts held be him immediately prior to such sale; and 

  

 Page 9 of 17 

	 	3.3.3	 the fifteenth
(15th) anniversary of the date the relevant DRH acquired
the Depositary Receipts to which his Executive Loan, in which case the Executive shall repay the total amount of the Executive Loan and accrued but unpaid interest thereon. 

 

	3.4	Each DRH making use of this Executive Loan facility hereby irrevocably authorises and instructs the Foundation to deduct from any amount payable to such DRH under these
Conditions of Administration an amount equal to the total amount repayable by such DRH to the Investor pursuant to Article 3.3, and to immediately remit same on that DRHs behalf to the Investor on account and in reduction of the DRH’s
indebtedness under the Executive Loan facility and to remit the balance of such amount, if any, to the relevant DRH. 

  

	4.	TRANSFER RESTRICTIONS FOR DEPOSITARY RECEIPTS; ENCUMBRANCES 

  

	4.1	A DRH may not transfer Depositary Receipts, other than: 

  

	 	4.1.1	with the prior written consent of the Supervisory Board; or 

  

	 	4.1.2	pursuant to the exercise of the Call Option described in Article 5 or the exercise of the drag-along or tag-along rights respectively in Article 9.

  

	4.2	Depositary Receipts may only be transferred by way of a written instrument (onderhandse akte) in a form approved by the Supervisory Board and signed by
the Foundation, each relevant transferee and each relevant DRH. A transfer in any other form will be null and void. 

  

	4.3	A DRH may not Encumber Depositary Receipts, except with the prior written approval of the Board and the Supervisory Board. 

 

	5.	CALL OPTION 

  

	5.1	Each Qualified Leaver B and a Qualified Leaver C hereby grants an irrevocable call option to the Investor (“Call Option”) over all of the
Depositary Receipts held by that DRH from time to time, exercisable upon a Relevant Event occurring with respect to a DRH and on the terms stated in Articles 5 and 6. 

 

	5.2	If a Qualified Leaver B or a Qualified Leaver C becomes subject to a Relevant Event then, in the 90 days following the Investor becoming aware of the Relevant Event
(the “Exercise Window”), the Investor may, but need not, exercise the Call Option in whole or in part and require (as the case may be): 

 

	 	5.2.1	subject to Article 5.4, the relevant DRH to sell all or part of his Depositary Receipts to a person or persons designated by the Investor; or (at the option of the
Investor); 

  

	 	5.2.2	subject to Article 5.4, the Foundation to sell all or part of the underlying Shares corresponding to the Depositary Receipts in respect of which the Call Option is
exercised to a person or persons designated by the Investor against simultaneous cancellation of the relevant Depositary Receipts. 

  

 Page 10 of 17 

	5.3	For the avoidance of doubt, in the case of a partial exercise of the Call Option the Investor shall remain able to exercise at any time within the remaining Exercise
Window the Call Option in respect of the balance of the relevant Depositary Receipts. 

  

	5.4	In the event that the Investor exercises its Call Option then all the Depositary Receipts of that Qualified Leaver B or Qualified Leaver C purchased pursuant to such
exercise will be added to the Reserved Pool. 

  

	5.5	From the occurrence of any Relevant Event in relation to any DRH until completion of the transfer of the relevant Depositary Receipts, the relevant DRH’s rights
attached to the Depositary Receipts shall be suspended (opgeschort). 

  

	5.6	Payment of the consideration for the Depositary Receipts transferred pursuant to the Call Option shall, to the extent not capable of being made simultaneous with the
transfer by way of set off against the Executive Loan, remain outstanding, interest free, and shall occur promptly following receipt by the Investor of any proceeds upon an Exit. 

 

	5.7	If a Relevant Event applies to a DRH (hereinafter referred to as the “Transferor”), the DRH shall notify the Board and the Investor in writing within 5
days after the occurrence of the Relevant Event. The Investor shall then in consultation with the Board: 

  

	 	5.7.1	determine the price payable for the relevant Depositary Receipts in accordance with Article 6; 

 

	 	5.7.2	notify the Transferor and the Board of said price. 

  

	5.8	In the event that the Transferor fails to duly notify the Relevant Event to the Board in accordance with Article 5.7, the Board shall inform the Transferor that he is
under the obligation to offer his Depositary Receipts pursuant to Article 5.7. If the Transferor then fails to make the offer within 10 days of being so informed, the Board shall be irrevocably authorised on behalf of the Transferor to take such
action and sign such documents as is necessary or appropriate if the Call Option is being exercised, without incurring any liability whatsoever towards the Transferor. 

 

	5.9	The Investor may, following consultation with the CEO, offer the Company, the Foundation or the other DRHs the possibility to purchase all or part of the Depositary
Receipts in relation to which the Call Option is exercised, without prejudice to the provision of paragraph 5.4. 

  

	6.	CALL PRICE 

  

	6.1	The price payable in relation to the Depositary Receipts (as the case may be pursuant to exercise of the Call Option) shall be as follows: 

 

	 	6.1.1	an amount equal to the higher of the Cost and the Fair Market Value as at the Relevant Event of all of the DRH’s Depositary Receipts if the DRH:

  

	 	(a)	dies, or becomes permanently disabled (as defined under the statutory local social security regulations); 

 

 Page 11 of 17 

	 	(b)	retires in accordance with the relevant Group member’s retirement scheme; or 

 

	 	(c)	ceases to be an employee of the Group due to or following a Change of Control, 

such DRH to be considered a “Qualified Leaver A”; 

 

	 	6.1.2	an amount equal to the lower of the Cost and the Fair Market Value as at the Relevant Event of all of the DRH’s Depositary Receipts if the DRH:

  

	 	(a)	is dismissed for urgent reasons as defined in article 7:678 of the Dutch Civil Code (or the equivalent thereof in other jurisdictions if Dutch law is not applicable to
his employment contract); 

  

	 	(b)	voluntarily resigns and subsequently, in the two (2) year period following such resignation, directly or indirectly and in any capacity whatsoever engages in any
activities in competition with the activities of any member of the Group; or 

  

	 	(c)	breaches any of the obligations under the MEP Documents, 

such DRH to be considered a “Qualified Leaver B”; 

 

	 	6.1.3	An amount equal to the Fair Market Value as at the Relevant Event for the Depositary Receipts which constitute the DRH’s Relevant Percentage and an amount equal to
the lower of the Cost and the Fair Market Value as at the Relevant Event of the Depositary Receipts that are not included in the relevant DRH’s Relevant Percentage if the DRH ceases to be an employee of any member of the Group as a result of
facts or circumstances other than those mentioned in Articles 6.1.1 and 6.1.2. Such DRH is considered to be a “Qualified Leaver C”. 

  

	6.2	The CEO may, following consultation with the Investor, in individual cases, determine a price for the relevant Depositary Receipts, or other conditions applicable to a
transfer of Depositary Receipts, more favourable for the relevant Transferor than would apply pursuant to these conditions of administration. Under no circumstances shall the use of this right by the CEO or the approval granted by the Investor
create or imply rights for any other DRH. 

  

	7.	DETERMINATION OF FAIR MARKET VALUE 

  

	7.1	Fair Market Value shall be determined by the Board, subject to the right of the Supervisory Board to review and approve same, and in accordance with the following
formula : 

  

	 	7.1.1	 In any period before a Listing: the pro rata portion of the value of the entire share capital of the Company which is arithmetically
attributable to the Shares 

  

 Page 12 of 17 

	 	 
underlying the relevant Depository Receipts, determined on a fully diluted basis taking into account all options and other rights to receive any shares in the capital of the Company, if any,
existing at the relevant time, including all Available Shares, whereby the value of the entire issued share capital of the Company shall be determined in accordance with both the ‘income approach’ and the ‘market approach’,
supported by an analysis conducted by an external independent qualified valuation firm, as follows: 

  

	 	•	 	 Discounted Cash Flow (DCF) analysis is a valuation technique that provides an estimation of the value of based on the cash flows that an asset or
business can be expected to generate 

  

	 	•	 	 Comparable Companies Approach is a form of the market approach that provides an estimation of the value of a business based on the prevailing market
prices of comparable companies like Texas Instruments Inc., Infineon Technologies AG, STMicroelectronics NV, National Semiconductor Corp., Microchip Technology Inc., ON Semiconductor Corp., Atmel Corp., Fairchild Semiconductor International Inc.,
Analog Devices Inc.; and and 

  

	 	7.1.2	In any period after a Listing: the weighted average of the closing stock prices on the last consecutive 15 trading days immediately preceding the relevant time on the
stock exchange on which the Listing has occurred. If the Listing has occurred on more than one stock exchange, the closing stock price on the stock exchange on which the highest volume of shares has been traded in the aggregate of the relevant 15
trading days shall be used; 

  

	8.	DRAG-ALONG RIGHT AND TAG-ALONG RIGHT 

  

	8.1	The DRH is aware and agrees that the Investor has the right, in relation to any Sale to require that the Foundation sells to the relevant buyer a percentage of the
Shares held by it equal to the percentage of Shares sold by the Investor, on customary terms and conditions and for a consideration per Share equal to that received by the Investor. 

 

	8.2	In the event that the Foundation sells and transfers any Shares, the DRH shall receive from the Foundation in respect of each of his Depositary Receipts corresponding
to these Shares, the net proceeds of such sale received by the Foundation as set out in these Conditions of Administration 

  

	8.3	Subject to Article 9, each DRH has the right, in relation to any Sale by the Investor other than as referred to in Article 12, to demand to be given the opportunity to
sell that number of Depository Receipts held by such DRH determined by multiplying that number of his Depository Receipts by a percentage equal to the percentage of all the Investor’s Shares to be so sold, and on customary terms and conditions
and for a consideration per Share equal to that received by the Investor. 

  

	8.4	 Where Articles 8.1 and 8.3 refer to “customary terms”, this implies - among other things - that the Foundation shall on behalf of the
Executives, make such representations and warranties concerning the relevant underlying business as are customary and usual in the 

 

 Page 13 of 17 

	 	 
context of the relevant transaction, subject to the CEO being allowed to participate in the negotiation of such representations and warranties and to make fair disclosure against the same and on
the basis furthermore that any liability under such representations and warranties shall be pro rata the number of shares sold for their benefit. 

  

	9.	LISTING 

 It shall be in
the sole discretion of Investor when and in which form a Listing takes place. DRHs are obliged to cooperate and give all consents and take all other measures reasonably requested by Investor in this respect and to enter into such customary lock-up
agreement as the Investor may reasonably request on the basis of advice received from the investment bank(s) acting as lead manager(s) for that Listing or as may be requested by the relevant underwriter(s) (“Lock-Up”), such request
to be made after Investor has consulted with the Board of Management as to the views of the DRHs (such consultation being without prejudice to the obligation of the DRHs to agree to such a request by Investor) and to comply with all applicable rules
on insider trading. 
  

	9.1	Despite anything to the contrary in the MEP Documents, in the event of a Listing by way of a primary offering (i.e. listing of newly issued securities only), no DRH
shall have any right to request the sale of any of his Depositary Receipts or any of the underlying Shares or any of the securities into which they may have been converted. 

 

	9.2	In the event of a sale of shares on or following a secondary offering, the sale of listed securities must be effected in compliance with any applicable Lock-up, other
customary restrictions as may be requested by the underwriters and any applicable insider trading rules. 

  

	9.3	DRHs are entitled to all sales proceeds relating to such a sale by the Foundation of Shares, net of the relevant pro rata portion of any Permitted Expenses and net of
any taxes related to such sale in respect of which there is a withholding obligation, all in accordance with clause 14.1. 

  

	10.	PRE-EMPTION RIGHTS 

  

	10.1	 Where, on an issue of Shares Shareholders have a right of
pre-emption1, the Foundation shall notify each DRH thereof
in writing and shall set a time period in which the DRHs must notify the Foundation whether or not they wish the Foundation to exercise such pre-emption rights in relation to the Shares underlying their Depositary Receipts and if so, the number of
new Shares they wish the Foundation to subscribe for, for a price equal to the issue price of the newly issued Shares. 

  

	10.2	Where the DRHs have timely notified the Foundation of their desire to acquire additional Depositary Receipts pursuant to Article 10.1 and have provided the Foundation
with the necessary funds in cash in order to allow it to subscribe for the relevant Shares and have complied with all other terms and conditions applicable to the issue, the Foundation shall exercise its pre-emption rights and forthwith upon
acquisition of said Shares issue a corresponding number of Depository Receipts to the relevant DRHs. 

  

	1	 The usual
pre-emption rights on new share issues will be included in the Company’s articles of association. 

  

 Page 14 of 17 

	10.3	The provisions of this Article 10 are also applicable mutatis mutandis to an offer of Shares to the Foundation pursuant to an offering procedure
(aanbiedingsregeling) that may be applicable from time to time pursuant to the articles of association of the Company upon an intended sale of Shares by one or more of the Shareholders. 

 

	11.	EXERCISE OF RIGHTS 

  

	11.1	the Foundation shall claim all dividends and other distributions in respect of Shares and shall exercise all of its rights and obligations under any agreement to which
it is a party, including an agreement amongst all or some Shareholders. 

  

	11.2	the Foundation shall make available to the DRHs such dividends and distributions received by it promptly upon receipt from the Company, it being understood that where a
distribution is made in the form of Shares, the Foundation shall issue Depositary Receipts to the DRHs upon distribution of bonus Shares or stock dividends paid by the Company. 

 

	11.3	Where the Company makes a distribution on Shares which is at the request of the Shareholder in cash or in Shares, the Foundation shall as soon as possible give written
notice thereof to the DRHs entitled to the economic benefit of such distributions and shall set a time period in which the DRHs must notify the Foundation whether they wish the Foundation to elect for cash or Shares on their behalf. Such DRHs shall
inform the Foundation of their preference within the time period set by the Foundation. If the parties have not given such notice on time, the Foundation shall have the distributions made in the way the Foundation shall determine.

  

	11.4	Final distributions upon Shares in case of the Company’s liquidation shall be paid by the Foundation to DRHs against cancellation of the Depositary Receipts.

  

	12.	SYNDICATION AND INTRA-GROUP TRANSFERS 

  

	12.1	Despite anything to the contrary in any of the MEP Documents and without triggering the tag-along option granted under Article 8, the Investor and each of its direct
and indirect shareholders and their respective Affiliates shall always be able to freely transfer Shares (or any indirect interest in the Company): 

  

	 	12.1.1	for syndication purposes within 90 days following Completion; and/or 

  

	 	12.1.2	to Affiliates at any time. 

  

	13.	TAXES 

  

	13.1	If and to the extent the investment by a DRH for any reason whatsoever gives rise to any tax or similar liability (save only for capital duty payable by the Company
upon the issue of Shares or other securities), directly or indirectly, for the Company or any member of the Group, the relevant DRH shall indemnify and hold harmless the Company and the relevant members of the Group from such taxes or similar
liabilities. Any liability of a DRH arising under this indemnity may be set-off against any payment at any time due to that DRH by the Company or any member of the Group, without prejudice to the right of the Company and the relevant members of the
Group to claim payment from the DRH. 

  

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	13.2	For the avoidance of doubt, the liability of DRHs under this indemnity shall be on a several basis and not joint and several with other DRHs. 

 

	14.	NET PROCEEDS 

  

	14.1	In any circumstances when any payment is due to a DRH, this shall always be paid net of the pro rata portion of Permitted Expenses and net of any taxes.

  

	14.2	Where consideration other than cash is received in respect of a transaction triggering the payment to a DRH, the Investor shall have the choice, in its sole discretion,
to cause the payment due to the DRH to be settled either in cash or in the same form of consideration as was received by the Investor, provided that if the latter includes securities or other assets that are not Readily Marketable Securities, the
Investor shall undertake to put in place such arrangements as may be necessary to ensure that the relevant DRHs are able to dispose of such securities or other assets at the same time and on the same terms as the Investor is able to dispose of such
securities or other assets as it may hold to an unaffiliated third party (unless the DRHs have agreed with the party paying the consideration to keep all or a portion of said securities for a period of time). 

 

	15.	EXTERNAL DEBT FACILITIES 

All rights under the MEP Documents and any related documents are subject to any restrictions that may be imposed by the third party
providers of long-term finance to the Group. 
  

	16.	INVESTOR DISCRETION TO MAKE EXCEPTIONS 

The Investor may at any time, acting in its sole and unfettered discretion, waive, amend any of the terms of the MEP Documents and/or may
make any exceptions to the rules set out in the MEP Documents as the Investor deems fit in each case to the effect that any DRH or any group of DRHs will be treated more favourably than if the terms of the MEP Documents were applied. For the
avoidance of doubt, if the Investor chooses to exercise this discretionary power it shall not be obliged to treat all DRHs present or future DRHs equally. 
  

	17.	COSTS 

 No costs shall be
charged by the Foundation to the DRHs. All costs incurred by the Foundation shall be for the account of the Company. 
  

	18.	CANCELLATION 

  

	18.1	DRHs do not have the right to seek the termination of the administration of Shares or the Depositary Receipts by the Foundation. 

 

	18.2	Notwithstanding the provisions of the articles of association of the Foundation regarding the cancellation of Depositary Receipts and winding-up of the Foundation, no
DRH shall have the right to obtain Shares in return for handing in his Depositary Receipts. 

  

	18.3	These conditions of administration will cease to be effective in relation to and the relevant Depositary Receipts will be cancelled (geroyeerd) immediately upon
expiration of any lock up imposed following a Listing. Upon such cancellation, the DRHs shall receive the underlying Shares in exchange for the Depositary Receipts being cancelled. 

 

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	19.	AMENDMENTS 

  

	19.1	These Conditions of Administration may be amended by the Board in the manner and under the same restrictions as set out in article 9 of the articles of association of
the Foundation regarding amendment of such articles of association. However, an amendment to these Conditions of Administration can be made by a non-notarial deed. 

 

	19.2	These Conditions of Administration and all the related documents may be varied at the request of the Investor (and the Board shall in such cases resolve to amend these
Conditions of Administration accordingly) if: 

  

	 	19.2.1	such variation is made for bona fide tax, financing or other structuring reasons, provided that all reasonable efforts are taken to ensure that such variation
shall not affect the economic position of DRHs (including their general tax position); or 

  

	 	19.2.2	the Board of Management approves the proposed changes (in which case it shall not be necessary to obtain the consent of the other DRHs). 

 

	19.3	Any amendment shall only become effective and enforceable against the Foundation and all DRHs, after having been validly adopted by resolution of the Board.

  

	19.4	The Board shall notify in writing each DRH, at his address as referred to in article 3 of the articles of association of the Foundation, of any amendment to the
articles of association of the Foundation or of these Conditions of Administration. 

  

	20.	LAW AND JURISDICTION 

  

	20.1	These Conditions of Administration and each Deed of Transfer and the relationship between the Foundation and the DRHs generally, shall be governed by and construed in
accordance with the laws of The Netherlands. 

  

	20.2	Any dispute arising under or in connection with these Conditions of Administration or any relevant Deed of Transfer shall be settled by the competent courts in
Amsterdam, The Netherlands, subject to appeal (hoger beroep) and supreme court appeal (cassatie). 

  

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