Document:

exv4w2

 

Exhibit 4.2

FoxyTunes Ltd.

2008 RESTRICTED STOCK UNIT PLAN

1. Purposes of the Plan.    The purposes of this 2008 Restricted Stock Unit Plan are to
attract and retain the best available personnel for positions of substantial
responsibility, to provide additional incentive to Employees of the Company and its
Subsidiaries and to promote the success of the Company’s business. To accomplish the
foregoing, the Plan provides that the Company may grant Restricted Stock Units (as
hereinafter defined).

2. Definitions.    As used herein, the following definitions shall apply:

“Administrator” means the Board or any of its Committees appointed pursuant to Section 4 of
the Plan.

“Applicable Laws” means any legal requirements of all state and federal laws, including
without limitation securities laws and the Code, in any event, relating to the
administration of stock incentive plans such as the Plan.

“Award” means an award of Restricted Stock Units (as defined below).

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

“Code” means the Internal Revenue Code of 1986, as amended.

“Committee” means the Committee appointed by the Board of Directors in accordance with
Section 4(a) of the Plan.

“Common Stock” means the common stock of the Company.

“Company” means FoxyTunes Ltd., an Israeli limited private company.

“Consultant” means any person, but not including a Non-Employee Director, who is engaged by
the Company, Parent or Subsidiary to render services and is compensated for such services.

“Continuous Status as an Employee or Consultant” means the absence of any interruption or
termination of service as an Employee or Consultant. Continuous Status as an Employee or
Consultant shall not be considered interrupted in the case of: (i) sick leave;
(ii) military leave; (iii) any other leave of absence approved by the Administrator,
provided that such leave is for a period of not more than ninety (90) days, unless
reemployment upon the expiration of such leave is guaranteed by contract or statute, or
unless provided otherwise pursuant to Company policy adopted from time to time; or (iv) in
the case of transfers between locations of the Company or between the Company, Parent and
Subsidiaries or their respective successors. For purposes of this Plan, a change in status
from an Employee to a Consultant or from a Consultant to an Employee will not constitute an
interruption of Continuous Status as an Employee or Consultant. If an entity ceases to be
a Subsidiary, an interruption of Continuous Status as an Employee or Consultant shall not
be

 

 

deemed to have occurred with respect to each Employee or Consultant in respect of such
Subsidiary who immediately becomes an Employee or Consultant of the Company, Parent or
another Subsidiary that does not cease to be a Subsidiary after giving effect to the
transaction or other event giving rise to the change in status.

“Director” means a member of the Board.

“Employee” means any person, including Named Executives, Officers and Directors, employed
by the Company, Parent or Subsidiary, with the status of employment determined based upon
such minimum number of hours or periods worked as shall be determined by the Administrator
in its discretion, subject to any requirements of the Code. The payment of a director’s fee
by the Company to a Director shall not be sufficient to constitute “employment” of the
Director by the Company.

“Exchange Act” means the Securities Exchange Act of 1934, as amended.

“Fair Market Value” means, as of any date, the fair market value of Common Stock determined
as follows:

	 	(i)	 	If the Common Stock is listed on any established stock
exchange or a national market system including without limitation the Nasdaq
Global Market and Nasdaq Global Select Market, its Fair Market Value shall be
the closing sales price for such stock as quoted on such exchange or such
system on the date of determination (if for a given day no sales were
reported, the closing bid on that day shall be used), as such price is
reported in The Wall Street Journal or such other source as the Administrator
deems reliable;
	 
	 	(ii)	 	If the Common Stock is listed on The Nasdaq Stock Market
(but not on the Nasdaq Global Market or Nasdaq Global Select Market thereof)
or regularly quoted by a recognized securities dealer but selling prices are
not reported, its Fair Market Value shall be the mean between the bid and
asked prices for the Common Stock on the date of determination, as reported
in The Wall Street Journal or such other source as the Administrator deems
reliable; or
	 
	 	(iii)	 	In the absence of an established market for the Common
Stock, the Fair Market Value thereof shall be determined in good faith by the
Administrator in compliance with any applicable legal, tax (including,
without limitation, Section 409A of the Code) and accounting requirements.

“Non-Employee Director” means a Director who is not an Employee.

“Officer” means an officer of the Company, Parent or Subsidiary.

 

 

“Parent” means a “parent corporation” of the Company, whether now or hereafter existing, as
defined in Section 424(e) of the Code, or any successor provision.

“Plan” means this 2008 Restricted Stock Unit Plan, as amended from time to time.

“Reporting Person” means an Officer, Director, or greater than ten percent stockholder of
the Company, Parent or Subsidiary within the meaning of Rule 16a-2 under the Exchange Act,
who is required to file reports pursuant to Rule 16a-3 under the Exchange Act.

“Restricted Stock Unit” means the right to receive in cash or Shares the Fair Market Value
of a Share granted pursuant to Section 8 of the Plan.

“Rule 16b-3” means Rule 16b-3 promulgated under the Exchange Act, as the same may be
amended from time to time, or any successor provision.

“Share” means a share of the Common Stock, as adjusted in accordance with Section 10 of the
Plan.

“Stock Exchange” means any stock exchange or consolidated stock price reporting system on
which prices for the Common Stock are quoted at any given time.

“Subsidiary” means a “subsidiary corporation” of the Company or Parent (“Subsidiaries”
meaning more than one “subsidiary corporation”) whether now or hereafter existing, as
defined in Section 424(f) of the Code, or any successor provision.

3. Stock Subject to the Plan. The Shares may be authorized, but unissued, or reacquired
Common Stock. The maximum aggregate number of Shares that may be issued under the Plan is
155,000 Shares. The foregoing numerical limit is subject to adjustment as contemplated by
Section 10.

4. Administration of the Plan.

	(a)	 	The Administrator.    The Plan shall be administered by and all Awards under
the Plan shall be authorized by the Administrator. The “Administrator” means the Board
or one or more committees appointed by the Board or another committee (within its
delegated authority) to administer all or certain aspects of the Plan. Any such
committee shall be comprised solely of one or more Directors or such number of
Directors as may be required under Applicable Law. A committee may delegate some or
all of its authority to another committee so constituted. The Board or a committee
comprised solely of Directors may also delegate, to the extent permitted by
Section 157(c) of the Delaware General Corporation Law and any other Applicable Law,
to one or more Officers of the Company or Parent, its powers under the Plan (a) to
designate the Employees other than an Officer who is a Reporting Person who will
receive grants of

 

 

	 	 	Awards under the Plan, and (b) to determine the number of Shares subject to, and
the other terms and conditions of, such Awards. The Board may delegate different
levels of authority to different committees with administrative and grant
authority under the Plan. Unless otherwise provided in the Bylaws of the Company
or the applicable charter of any Administrator: (a) a majority of the members of
the acting Administrator shall constitute a quorum, and (b) the vote of a majority
of the members present assuming the presence of a quorum or the unanimous written
consent of the members of the Administrator shall constitute action by the acting
Administrator.
	 
	 	 	With respect to awards intended to satisfy the requirements for performance-based
compensation under Section 162(m) of the Code, the Plan shall be administered by a
committee consisting solely of two or more outside directors (as this requirement
is applied under Section 162(m) of the Code); provided, however, that the failure
to satisfy such requirement shall not affect the validity of the action of any
other committee otherwise duly authorized and acting in the matter. Award grants,
and transactions in or involving Awards, intended to be exempt under Rule 16b-3
promulgated under the Exchange Act, must be duly and timely authorized by the
Board or a committee consisting solely of two or more non-employee directors (as
this requirement is applied under Rule 16b-3 promulgated under the Exchange Act).
To the extent required by any applicable Stock Exchange, the Plan shall be
administered by a committee composed entirely of independent directors (within the
meaning of the applicable Stock Exchange rules).
	 
	(b)	 	Powers of the Administrator.    Subject to the provisions of the Plan and in
the case of a Committee, the specific duties delegated by the Board to such Committee,
and subject to the approval of any relevant authorities, including the approval, if
required, of any Stock Exchange, the Administrator shall have the authority, in its
discretion:

	 	(i)	 	to determine the Fair Market Value of the Common Stock, in
accordance with the definition of such term set forth above;
	 
	 	(ii)	 	to select the Consultants and Employees to whom Awards may
from time to time be granted hereunder;
	 
	 	(iii)	 	to determine whether and to what extent Awards are granted
hereunder;
	 
	 	(iv)	 	to determine the number of Shares of Common Stock, if any,
to be covered by each Award granted hereunder;
	 
	 	(v)	 	to approve forms of agreements, not inconsistent with the
terms of the Plan, for use under the Plan;
	 
	 	(vi)	 	to determine the terms and conditions, not inconsistent
with the terms of the Plan, of any Award granted hereunder, including,

 

 

	 	 	 	but not limited to, the Share price and any restriction or limitation,
the vesting of any Award or the acceleration of vesting or waiver of a
forfeiture restriction, based in each case on such factors as the
Administrator shall determine, in its sole discretion;
	 
	 	(vii)	 	to determine whether and under what circumstances an Award
may be settled in cash or other consideration instead of Common Stock;
	 
	 	(viii)	 	to adjust the number of Shares subject to any Award or change previously
imposed terms and conditions, in such circumstances as the Administrator may
deem appropriate, in each case subject to Sections 3 and 13;
	 
	 	(ix)	 	to construe and interpret the terms of the Plan and Awards
granted pursuant to the Plan; and
	 
	 	(x)	 	in order to fulfill the purposes of the Plan and without
amending the Plan, to modify Awards to participants who are foreign nationals
or employed outside of the United States in order to recognize differences in
applicable local law, tax policies or customs.

	(c)	 	Effect of Administrator’s Decision.    All decisions, determinations and
interpretations of the Administrator shall be final and binding on all holders of any
Award.

5. Eligibility.

	(a)	 	Recipients of Grants.    Awards may be granted to eligible Employees and
Consultants. An Employee or Consultant who has been granted an Award may, if he or
she is otherwise eligible, be granted additional Awards.

	(b)	 	No Employment Rights.    The Plan shall not confer upon any Award recipient
any right with respect to continuation of employment or consulting relationship with
the Company, nor shall it interfere in any way with such recipient’s right or the
Company’s right to terminate his or her employment or consulting relationship at any
time, with or without cause.

6. Term of Plan.    The Plan shall become effective upon the earlier to occur of its
adoption by the Board or its approval by the stockholders of the Company as described in
Section 17 of the Plan. It shall continue in effect until January 8, 2018, unless sooner
terminated under Section 13 of the Plan.

7. Term of Awards.    The term of each Award shall be the term stated in the written
agreement evidencing such Award.

8. Restricted Stock Units.

 

 

	(a)	 	General.    Restricted Stock Units may be issued either alone, in addition
to, or in tandem with cash awards made outside of the Plan. After the Administrator
determines that it will grant Restricted Stock Units under the Plan, it shall advise
the recipient in writing of the terms, conditions and restrictions related to the
offer (which may include restrictions based on performance criteria, passage of time
or other factors or a combination thereof), and the number of Restricted Stock Units
that such person shall be entitled to receive. The offer shall be accepted by
execution of a Restricted Stock Units Award agreement in the form determined by the
Administrator.

	(b)	 	Rights as a Stockholder.    A recipient who is awarded Restricted Stock Units
shall possess no incidents of ownership with respect to the Shares represented by such
Restricted Stock Units, unless and until the same are transferred to the recipient
pursuant to the terms of the Restricted Stock Unit.

	(c)	 	Other Provisions.    The Restricted Stock Units Award agreement shall contain
such other terms, provisions and conditions not inconsistent with the Plan as may be
determined by the Administrator in its sole discretion. In addition, the provisions of
Restricted Stock Units Award agreements need not be the same with respect to each
Award or each recipient who is awarded Restricted Stock Units.

9. Tax Withholding.    Upon any vesting or payment of an Award, the Company, Parent or
Subsidiary shall have the right at its option to:

	(a)	 	require the Award recipient (or the recipient’s personal representative or
beneficiary, as the case may be) to pay or provide for payment of the minimum amount
of any taxes which the Company, Parent or Subsidiary may be required to withhold with
respect to such Award event or payment; or

	(b)	 	deduct from any amount otherwise payable in cash to the Award recipient (or
the recipient’s personal representative or beneficiary, as the case may be) the
minimum amount of any Award recipient’s taxes which the Company, Parent or Subsidiary
may be required to withhold with respect to such cash payment.
	 
	 	 	In any case where a tax is required to be withheld in connection with the delivery
of Shares under the Plan, the Administrator may in its sole discretion (subject to
Applicable Laws) grant (either at the time of the Award or thereafter) to the
Award recipient the right to elect, pursuant to such rules and subject to such
conditions as the Administrator may establish, to (i) have the Company reduce the
number of Shares to be delivered by (or otherwise reacquire from the recipient)
the appropriate number of Shares, valued in a consistent manner at their Fair
Market Value or at the sales price in accordance with authorized procedures for
cashless exercises, necessary to satisfy the minimum applicable withholding
obligation on vesting or payment, or (ii) surrender to the

 

 

	 	 	Company Shares which (A) in the case of Shares initially acquired from the
Company, have been owned by the Award recipient for such period of time (if any)
as may be required to avoid a charge to the Company’s earnings, and (B) have a
Fair Market Value equal to the minimum amount required to be withheld. For these
purposes, the Fair Market Value of the Shares to be withheld or repurchased, as
applicable, shall be determined on the date that the amount of tax to be withheld
is to be determined pursuant to the Code (the “Tax Date”).
	 
	 	 	Any surrender by a Reporting Person of previously owned Shares to satisfy tax
withholding obligations incurred in connection with an Award granted under the
Plan must comply with the applicable provisions of Rule 16b-3.
	 
	 	 	All elections by an Award recipient to have Shares withheld to satisfy tax
withholding obligations shall be made in writing in a form acceptable to the
Administrator and shall be subject to the following restrictions: (i) the
election must be made on or prior to the applicable Tax Date; (ii) once made, the
election shall be irrevocable as to the particular Shares for which the election
is made; and (iii) all elections shall be subject to the consent or disapproval of
the Administrator.

10. Adjustments Upon Changes in Capitalization, Corporate Transactions.

	(a)	 	Changes in Capitalization.    Subject to any required action by the
stockholders of the Company, (i) the number and type of shares of Common Stock (or
other securities) covered by each outstanding Award, (ii) the number and type of
shares of Common Stock (or other securities) that have been authorized for issuance
under the Plan but as to which no Awards have yet been granted or that have been
returned to the Plan upon cancellation or expiration of an Award or otherwise and/or
(iii) the maximum number of shares of Common Stock for which Awards may be granted to
any Employee under the Plan, shall be equitably and proportionately adjusted for any
increase or decrease in the number of issued shares of Common Stock resulting from a
stock split, reverse stock split, stock dividend, combination, recapitalization or
reclassification of the Common Stock, or any other increase or decrease in the number
of issued shares of Common Stock effected without receipt of consideration by the
Company; provided, however, that conversion of any convertible securities of the
Company shall not be deemed to have been “effected without receipt of consideration.”
Such adjustment shall be made by the Board, whose determination in that respect shall
be final, binding and conclusive. Except as expressly provided herein, no issuance by
the Company of shares of stock of any class, or securities convertible into shares of
stock of any class, shall affect, and no adjustment by reason thereof shall be made
with respect to, the number or price of shares of Common Stock (or other securities)
subject to an Award.
	 
	 	 	It is intended that, if possible, any adjustments contemplated by the preceding
paragraph be made in a manner that satisfies applicable legal, tax (including,
without limitation, Section 409A of the Code)

 

 

	 	 	and accounting (so as not to trigger any charge to earnings with respect to such
adjustment) requirements. Without limiting the generality of the preceding
sentence or of Section 4(c), any good faith determination by the Administrator as
to whether an adjustment is required pursuant to this Section 10(a), and the
extent and nature of any such adjustment, shall be conclusive and binding on all
persons.
	 
	(b)	 	Corporate Transactions.    In the event of the proposed dissolution or
liquidation of the Company, each Award will terminate immediately prior to the
consummation of such proposed action, unless otherwise provided by the Administrator.
Additionally, the Administrator may, in the exercise of its sole discretion in such
instances, declare that any Award shall terminate as of a date fixed by the
Administrator. In the event of a proposed sale of all or substantially all of the
assets of the Company, or the merger of the Company with or into another corporation,
each Award shall be assumed or an equivalent Award shall be substituted by such
successor corporation or a parent or subsidiary of such successor corporation.

11. Non -transferability of Awards.    An Award may not be sold, pledged, assigned,
hypothecated, transferred, or disposed of in any manner other than by will or by the laws
of descent or distribution. Except as otherwise provided by the Administrator, an Award may
only be purchased during the lifetime of the recipient of the Award .

12. Time of Granting of an Award.    The date of grant of an Award shall, for all purposes,
be the date on which the Administrator makes the determination granting such Award, or such
other later date as is determined by the Administrator in compliance with applicable legal,
tax (including, without limitation, Section 409A of the Code) and accounting requirements.
Notice of the grant determination shall be given to each Employee or Consultant to whom an
Award is so granted within a reasonable time after the date of such grant.

13. Amendment and Termination of the Plan.

	(a)	 	Amendment and Termination.    Subject to 13(c) below, the Board may amend,
alter, suspend, discontinue, or terminate the Plan or any portion thereof at any time;
provided, that no such amendment, alteration, suspension, discontinuation or
termination shall be made without stockholder approval if such approval is necessary
to comply with any tax, securities or regulatory law or requirement or any applicable
Stock Exchange requirement with which the Board intends the Plan to comply or if such
amendment constitutes a “material amendment.” For purposes of the Plan, a “material
amendment” shall mean an amendment that (i) materially increases the benefits accruing
to participants under the Plan, (ii) materially increases the number of securities
that may be issued under the Plan, (iii) materially modifies the requirements for
participation in the Plan, or (iv) is otherwise deemed a material amendment by the
Administrator pursuant to any Applicable Law or applicable accounting or Stock
Exchange rules.

 

 

	(b)	 	Amendments to Awards.    Without limiting any other express authority of the
Administrator under (but subject to) the express limits of the Plan, the Administrator
by agreement or resolution may waive conditions of or limitations on Awards that the
Administrator in the prior exercise of its discretion has imposed, without the consent
of the Award recipient, and (subject to the requirements of Section 13(c)) may make
other changes to the terms and conditions of Awards.
	 
	(c)	 	Limitations on Amendments to Plan and Awards.    No amendment, suspension or
termination of the Plan or change of or affecting any outstanding Award shall, without
written consent of the Award recipient, affect in any manner substantially adverse to
such recipient any rights or benefits of such recipient or obligations of the Company
under any Award granted under the Plan prior to the effective date of such change.
Changes, settlements and other actions contemplated by Section 10 shall not be deemed
to constitute changes or amendments for purposes of this Section 13(c).

14. Compliance with Laws.  The Plan, the granting and vesting of Awards under the Plan, the
offer, issuance and delivery of shares of Common Stock, and/or the payment of money under
the Plan or under Awards are subject to compliance with all applicable federal, state and
foreign laws, rules and regulations (including but not limited to state and federal
securities law and federal margin requirements) and to such approvals by any listing,
regulatory or governmental authority as may, in the opinion of counsel for the Company, be
necessary or advisable in connection therewith. The person acquiring any securities under
the Plan will, if requested by the Company, Parent or a Subsidiary, provide such assurances
and representations to the Company, Parent or Subsidiary as the Administrator may deem
necessary or desirable to assure compliance with all Applicable Law and accounting
requirements.

15. Reservation of Shares.    The Company, during the term of this Plan, will at all times
reserve and keep available such number of Shares as shall be sufficient to satisfy the
requirements of the Plan. The inability of the Company to obtain authority from any
regulatory body having jurisdiction, which authority is deemed by the Company’s counsel to
be necessary to the lawful issuance and sale of any Shares hereunder and which Company has
made a commercially reasonable effort to obtain, shall relieve the Company of any liability
in respect of the failure to issue or sell such Shares as to which such requisite authority
shall not have been obtained.

16. Agreements.    Awards shall be evidenced by written agreements in such form as the
Administrator shall approve from time to time and which shall not be inconsistent with the
terms of this Plan.

17. Stockholder Approval.    Continuance of the Plan shall be subject to approval by the
stockholders of the Company within twelve (12) months before or after the date the Plan is
adopted. Such stockholder approval shall be obtained in the manner and to the degree
required under applicable federal and state law and the rules of any stock exchange upon
which the Shares are listed.

 

 

18. Unfunded Status of Plan.    The Plan is intended to constitute an “unfunded” plan for
incentive compensation. With respect to any payments not yet made to a participant by the
Company, nothing contained herein shall give any such participant any rights that are
greater than those of a general creditor of the Company.

19. Governing Law.    The Plan and all determinations made and actions taken pursuant
hereto shall be governed by the laws of the State of Delaware, without giving effect to the
conflict of laws principles thereof.exv10w39

 

Exhibit 10.39

February 12, 2008

Variable Term Accelerated Share Repurchase Transaction 

To:

Silicon Image, Inc.

1060 East Arques Ave.

Sunnyvale, CA 94085

From:

Credit Suisse International

One Cabot Square

London E14 4QJ

England

Dear Sirs:

This letter agreement (this “Confirmation”) confirms the terms and conditions of the
accelerated share repurchase transaction (the “Transaction”) entered into between Silicon
Image, Inc. (“Counterparty”) and Credit Suisse International (“CSI”), represented by Credit
Suisse, New York branch (“Agent”) as its agent, on the Trade Date specified below. This
Confirmation constitutes a “Confirmation” under the Agreement specified below.

	1.	 	The definitions and provisions contained in the 2002 ISDA Equity Derivatives Definitions (the
“Definitions”) (as published by the International Swaps and Derivatives Association,
Inc.) are incorporated into this Confirmation. References herein to a “Transaction” shall be
deemed to be references to a “Share Forward Transaction” for purposes of the Definitions.
This Confirmation evidences a complete binding agreement between Counterparty and CSI as to
the terms of this Transaction.
	 
	 	 	This Confirmation shall supplement, form a part of, and be subject to an agreement (the
“Agreement”) in the form of the 1992 ISDA Master Agreement (Multicurrency – Cross
Border), as if, on the Trade Date hereof, CSI and Counterparty had executed that agreement
(but without any Schedule other than the provisions in Section 15 of this Confirmation). In
the event of any inconsistency between the Definitions and the Agreement, the Definitions will
govern. In the event of any inconsistency between this Confirmation, on the one hand, and the
Definitions or the Agreement, on the other hand, this Confirmation will govern.

2. The following terms and conditions shall govern the Transaction:

General Terms:

	 	 	 	 	 
	 

	 	Trade Date:
	 	February 13, 2008
	 
	 	 	 	 
	 

	 	Buyer:
	 	Counterparty.

1

 

	 	 	 	 	 
	 

	 	Seller:
	 	CSI.
	 
	 	 	 	 
	 

	 	Shares:
	 	The common stock, par value $0.001 of Counterparty (sometimes also referred to as
the “Issuer”).
	 
	 	 	 	 
	 

	 	Price Adjustment Period

Termination Date:
	 	The earlier of:
	 
	 	 	 	 
	 

	 	 	 	(i) the Scheduled
Termination Date; and
	 
	 	 	 	 
	 

	 	 	 	(ii) the Scheduled
Trading Day immediately preceding the Accelerated
Termination Date.

	 	 	 	 	 
	 

	 	Scheduled Termination

Date:
	 	June 30, 2008; subject to adjustment
as provided in “Market Disruption
Event” below.
	 
	 	 	 	 
	 

	 	Accelerated Termination

Date:
	 	
Any Exchange Business Day after May
8, 2008 and prior to the Scheduled
Termination Date that is so
designated by CSI by written notice
to Counterparty of its intention to
terminate the Price Adjustment Period
(it being understood that such notice
may be given on the Accelerated
Termination Date).
	 
	 	 	 	 
	 

	 	Price Adjustment Period:
	 	The period commencing on and
including the Trade Date and ending
on and including the Price Adjustment
Period Termination Date.

Initial Settlement:

	 	 	 	 	 
	 

	 	Prepayment:
	 	Applicable.
	 
	 	 	 	 
	 

	 	Prepayment Amount:
	 	USD62,000,000
	 
	 	 	 	 
	 

	 	Prepayment Date:
	 	The third Clearance System Business
Day after the Trade Date.
	 
	 	 	 	 
	 

	 	Initial Deliveries:
	 	CSI shall deliver to Counterparty
7,692,308 Shares on the Prepayment
Date and 3,846,154 Shares on March
31, 2008. CSI shall make each Share
delivery in accordance with Section
9.4 of the Definitions, with each of
the Prepayment Date and March 31,
2008 deemed to be a “Settlement Date”
for a Physical Settlement purposes of
such Section 9.4 but not be deemed a
“Settlement Date” for purposes of

2

 

	 	 	 	 	 
	 

	 	 	 	the provisions set forth below under the caption “Net Share Settlement.”
	 
	 	 	 	 
	 

	 	Initial Share Price:
	 	The closing price for the Shares on
the Exchange on February 12, 2008.
	 
	 	 	 	 
	 

	 	Number of Shares:
	 	The aggregate number of Shares
delivered on the Prepayment Date and
on March 31, 2008.
	 
	 	 	 	 
	 

	 	Exchange:
	 	NASDAQ Global Select Market
	 
	 	 	 	 
	 

	 	Related Exchange(s):
	 	All Exchanges

Final Settlement:

	 	 	 	 	 
	 

	 	Net Share Settlement:
	 	Notwithstanding anything to the
contrary in the Definitions, (i) if
the Average Reference Price is less
than USD5.3733 per Share, CSI shall
deliver to Counterparty the CSI Share
Delivery Amount, and (ii) if (x) the
Average Reference Price is greater
than USD5.3733 per Share and (y)
Counterparty has, at any time not
later than the opening of trading on
the second Scheduled Trading Day
prior to the Scheduled Termination
Date (or, in the case of an
Accelerated Termination Date,
immediately following receipt of
notice from CSI of the designation of
such Accelerated Termination Date),
notified CSI in writing that Net
Share Settlement shall apply,
Counterparty shall deliver to CSI the
Counterparty Share Delivery Amount,
in either case on the Settlement
Date.
	 
	 	 	 	 
	 

	 	CSI Share Delivery

Amount:
	 	A number of Shares, rounded down to
the nearest whole Share, equal to (a)
the Prepayment Amount divided by the
Average Reference Price minus (b) the
Number of Shares, provided that in no
event shall CSI be required to
deliver more than thirty million
Shares (as such number may be
adjusted for stock splits or similar
events).

3

 

	 	 	 	 	 
	 

	 	Counterparty Share

Delivery Amount:
	 	

A number of Shares, rounded down to
the nearest whole Share, equal to (a)
the Number of Shares minus (b) the
Prepayment Amount divided by the
Average Reference Price, provided
that if Counterparty delivers
Unregistered Shares, Counterparty
shall deliver a number of Shares,
rounded down to the nearest whole
Share, equal to the product of the
Counterparty Share Delivery Amount
and 1.02; provided further,
notwithstanding anything to the
contrary herein, in no event shall
Counterparty be required to deliver
more than thirty million Shares (as
such number may be adjusted for stock
splits or similar events).
	 
	 	 	 	 
	 

	 	Settlement Date:
	 	The third Exchange Business Day
following the Price Adjustment Period
Termination Date.
	 
	 	 	 	 
	 

	 	Daily Share Reference

Price:
	 	

For each Valuation Date, (a) the
10b-18 volume-weighted average price
per Share on the Exchange on such day
as published on Bloomberg Page
“SIMG.Q <Equity> AQR SEC” (the
“Daily 10b-18 VWAP Price”) or any
successor page thereto, or if such
price is not so reported on such
Valuation Date for any reason, as
reasonably determined by the
Calculation Agent, minus (b) the
Daily Reference Price Adjustment
specified in Schedule I.
	 
	 	 	 	 
	 

	 	Average Reference Price:
	 	The arithmetic average of the Daily
Share Reference Prices for each
Valuation Date during the Price
Adjustment Period.
	 
	 	 	 	 
	 

	 	Valuation Date:
	 	Any Scheduled Trading Day in the
Price Adjustment Period or the Cash
Settlement Pricing Period, as the
case may be, that is not a Valuation
Disruption Day.
	 
	 	 	 	 
	 

	 	Valuation Disruption Day:
	 	Any Scheduled Trading Day (i) that is
a Disrupted Day or a day designated
by CSI as a Valuation Disruption Day
pursuant to Section 5.6 or Section 7
hereof; or (ii) on which CSI or its
affiliates (collectively, “CS”)
reasonably determine that it would be
appropriate, in light of any legal,
regulatory or self-regulatory
requirements or related policies and
procedures (whether or not such
requirements, policies or procedures
are imposed by law or have been
voluntarily adopted by CS), for CS to
refrain from purchasing Shares in
connection with this Transaction or
to purchase fewer than the number of
Shares that it would

4

 

	 	 	 	 	 
	 

	 	 	 	otherwise purchase in connection with this Transaction on such day.
	 
	 	 	 	 
	 

	 	 	 	For each Valuation Disruption Day,
CSI may, by written notice to
Counterparty, extend the Price
Adjustment Period or the Cash
Settlement Pricing Period, as the
case may be, by an additional
Valuation Date; provided however, if
the extension relates to clause (ii)
in the paragraph immediately above,
CSI shall not be required to
communicate to Counterparty the
reason for such extension in the
written notice.
	 
	 	 	 	 
	 

	 	 	 	If any Scheduled Trading Day is a
Disrupted Day in the Price Adjustment
Period or the Cash Settlement Pricing
Period, as the case may be, the
Calculation Agent may determine
whether (i) such Disrupted Day is a
Disrupted Day in full, in which case
the Daily 10b-18 VWAP Price for such
Disrupted Day may not be included for
purposes of determining the Average
Reference Price or the Cash
Settlement Average Price, as
applicable, or (ii) such Disrupted
Day is a Disrupted Day only in part,
in which case the Daily 10b-18 VWAP
Price for such Disrupted Day may be
determined by the Calculation Agent
based on Rule 10b-18 eligible
transactions in the Shares on such
Disrupted Day effected before the
relevant Market Disruption Event
occurred and/or after the relevant
Market Disruption Event ended, and
the weighting of the Daily 10b-18
VWAP Price for the relevant Scheduled
Trading Days during the Price
Adjustment Period or the Cash
Settlement Pricing Period, as the
case may be, may be adjusted in a
commercially reasonable manner by the
Calculation Agent for purposes of
determining the Average Reference
Price or Cash Settlement Average
Price, as applicable, with such
adjustments based on, among other
factors, the duration of any Market
Disruption Event and the volume,
historical trading patterns and price
of the Shares. “Rule 10b-18 eligible
transactions” shall mean trades that
are reported during the period of
time during which Counterparty could
purchase the Shares under Rule
10b-18(b)(2) and are effected
pursuant to the conditions of Rule
10b-18(b)(3), each under the Exchange
Act (as defined below).
	 
	 	 	 	 
	 

	 	Market Disruption Event:
	 	Section 6.3(a) of the Definitions is
hereby amended by replacing clause
(ii) thereof in its entirety with the
following: “(ii) an Exchange
Disruption at any time prior to

5

 

	 	 	 	 	 
	 

	 	 	 	the relevant Valuation Time on the relevant Valuation Date,
or” and inserting immediately following clause (iii) thereof
the following: “; in each case that the Calculation Agent
determines is material.”
	 
	 	 	 	 
	 

	 	Cash Settlement:
	 	If the Average Reference Price is
greater than USD5.3733 per Share and
Counterparty has not elected Net Share
Settlement in accordance with provisions
of “Net Share Settlement,” Cash
Settlement shall apply, in which case
Counterparty shall pay to CSI on the
Cash Settlement Date an amount in cash
equal to the Cash Settlement Amount.
	 
	 	 	 	 
	 

	 	Cash Settlement Date:
	 	The Exchange Business Day immediately
following the last day of the Cash
Settlement Pricing Period.
	 
	 	 	 	 
	 

	 	Cash Settlement Amount:
	 	The Counterparty Share Delivery Amount
multiplied by the arithmetic average of
the Daily 10b-18 VWAP Prices for each
Valuation Date during the Cash
Settlement Pricing Period (such average,
the “Cash Settlement Average Price”).
	 
	 	 	 	 
	 

	 	Cash Settlement Pricing

Period:
	 	

The number of Valuation Dates so
specified by CSI following receipt by
CSI of the notice described in the Cash
Settlement provision hereof, commencing
on the Scheduled Trading Day immediately
following the Price Adjustment Period
Termination Date.
	 
	 	 	 	 
	 

	 	Calculation Agent:
	 	CSI.
	 
	 	 	 	 
	 

	 	Credit Support Documents:
	 	None
	 
	 	 	 	 
	 	Share Adjustments:	 	 
	 
	 	 	 	 
	 

	 	Method of Adjustment:
	 	Calculation Agent Adjustment
	 
	 	 	 	 
	 	Extraordinary Events:	 	 
	 
	 	 	 	 
	 

	 	New Shares:
	 	In the definition of New Shares in
Section 12.1(i) of the Definitions, the
text in clause (i) shall be deleted in
its entirety and replaced with “publicly
quoted, traded or listed on any of the
New York Stock Exchange, the American
Stock Exchange, the NASDAQ Global Select
Market or the NASDAQ Global Market (or
their respective successors)”.
	 
	 	 	 	 
	 

	 	Consequences of
Merger Events:	 	 

6

 

	 	 	 	 	 
	 

	 	(a) Share-for-Share:
	 	Modified Calculation Agent Adjustment
	 
	 	 	 	 
	 

	 	(b) Share-for-Other:
	 	Cancellation and Payment (Calculation
Agent Determination)
	 
	 	 	 	 
	 

	 	(c) Share-for-Combined:
	 	Component Adjustment
	 
	 	 	 	 
	 

	 	      Determining Party:
	 	CSI
	 
	 	 	 	 
	 

	 	Tender Offer:
	 	Applicable
	 
	 	 	 	 
	 	 	Consequences of Tender Offer:
	 
	 	 	 	 
	 

	 	(a) Share-for-Share:
	 	Modified Calculation Agent Adjustment
	 
	 	 	 	 
	 

	 	(b) Share-for-Other:
	 	Cancellation and Payment (Calculation
Agent Determination)
	 
	 	 	 	 
	 

	 	(c) Share-for-Combined:
	 	Component Adjustment
	 
	 	 	 	 
	 

	 	      Determining Party:
	 	CSI
	 
	 	 	 	 
	 

	 	Nationalization, Insolvency

or Delisting:
	 	

Cancellation and Payment (Calculation
Agent Determination); provided that in
addition to the provisions of Section
12.6(a)(iii) of the Definitions, it
shall also constitute a Delisting if the
Shares are not immediately re-listed,
re-traded or re-quoted on any of the New
York Stock Exchange, the American Stock
Exchange, the NASDAQ Global Market or
the NASDAQ Global Select Market (or
their respective successors); if the
Shares are immediately re-listed,
re-traded or re-quoted on any such
exchange or quotation system, such
exchange or quotation system shall be
deemed to be the Exchange.

Additional Disruption Events:

	 	 	 	 	 
	 

	 	(a) Change-in-Law:
	 	Applicable
	 
	 	 	 	 
	 

	 	(b) Insolvency Filing:
	 	Applicable
	 
	 	 	 	 
	 

	 	(c) Hedging Disruption:
	 	Applicable
	 
	 	 	 	 
	 

	 	(d) Loss of Stock Borrow:
	 	Applicable

7

 

	 	 	 
	Maximum Stock 

Loan Rate:

	 	2%
	 
	 	 
	Determining Party:

	 	CSI
	 
	 	 
	Additional Termination Event:

	 	CSI may designate any Scheduled Trading Day
as an Early Termination Date with respect
to the Transaction if at any time prior to
final settlement of this Transaction
Counterparty (i) alters the amount per
share or frequency of its ordinary cash
dividend on the Shares, or (ii) declares
any dividend other than an ordinary cash
dividend on the Shares. In either such
case, this Transaction shall be the sole
Affected Transaction and Counterparty shall
be the sole Affected Party.
	 
	 	 
	Non-Reliance/ Agreements and
Acknowledgments Regarding
Hedging Activities/ Additional
Acknowledgments:

	 	Applicable

	3.	 	Additional Provisions Regarding Share Settlement:
	 
	3.1	 	Upon (x) the occurrence or effective designation of an Early Termination Date in respect of
the Transaction or (y) the occurrence of an Extraordinary Event that results in the
cancellation or termination of the Transaction pursuant to Section 12.2, 12.3, 12.6 or 12.9 of
the Definitions (any such event as described in clause (x) or (y) above, an “Early Termination
Event”) (except, in the case of clause (y), an Extraordinary Event that is a Nationalization,
Insolvency, a Merger Event or a Tender Offer, in each case, in which the consideration or
proceeds to be paid to holders of Shares consists solely of cash), if one party would owe any
amount to the other party pursuant to Section 6(d)(ii) of the Agreement or any Cancellation
Amount pursuant to Section 12.2, 12.3, 12.6 or 12.9 of the Definitions (any such amount, a
“Payment Amount”), then on the date on which any Payment Amount is due, in lieu of any payment
or delivery of such Payment Amount, Counterparty may elect, by prior written notice to CSI,
that the party owing such amount shall deliver to the other party a number of Shares (or, in
the case of a Merger Event, Tender Offer, Nationalization or Insolvency, a number of units,
each comprising the number or amount of the securities or property that a hypothetical holder
of one Share would receive in such Extraordinary Event (each such unit, an “Alternative
Termination Delivery Unit” and, the securities or property comprising such unit, “Alternative
Termination Property”)) with a value equal to the Payment Amount based on the market value of
the Shares (or such Alternative Termination Property) as of the Early Termination Date or the
date as of which the Cancellation Amount is determined, as the case may be, as determined by
the Calculation Agent; provided that in determining the composition of any Alternative
Termination Delivery Unit, if the relevant Extraordinary Event involves a choice of
consideration to be received by holders, such holder shall be deemed to have elected to
receive the maximum possible amount of cash.

8

 

	3.2	 	Notwithstanding anything to the contrary in this Confirmation, Counterparty acknowledges and
agrees that, on any day, to the extent (but only to the extent) that transactions in Shares
(or any other class of voting securities of Counterparty) would result in the ultimate parent
entity of CSI directly or indirectly beneficially owning (as such term is defined for
purposes of Section 13(d) of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”)) at any time on such day in excess of 9.0 % of the outstanding Shares
or any other class of voting securities of Counterparty, (a) CSI shall not be obligated to
deliver or receive any Shares to or from Counterparty, (b) Counterparty shall not be entitled
to receive any Shares from CSI on such day, and (c) any purported receipt or delivery of
Shares shall be void and have no effect.
	 
	 	 	If, on any day, any delivery or receipt of Shares by CSI is not made, in whole or in part, as
a result of this provision, the respective obligations of Counterparty and CSI to make or
accept such receipt or delivery shall not be extinguished and such receipt or delivery shall
be effected over time as promptly as practicable after CSI determines, in a commercially
reasonable manner, that such receipt or delivery would not result in its ultimate parent
entity directly or indirectly beneficially owning in excess of 9.0% of the outstanding Shares
or any other class of voting securities of Counterparty.
	 
	3.3	 	Notwithstanding Section 9.11 of the Definitions, but subject to the last paragraph of this
Section 3.3, the parties acknowledge that Shares delivered as part of Counterparty Share
Delivery Amount or pursuant to this Section 3 may be Unregistered Shares. For the purposes
hereof, “Unregistered Shares” means Shares that have not been registered pursuant to
an effective registration statement under the Securities Act of 1933, as amended (the
“Securities Act”) or any state securities laws (“Blue Sky Laws”) or Shares
that cannot otherwise be freely sold, transferred, pledged or otherwise disposed of without
registration under the Securities Act or under applicable Blue Sky Laws unless such sale,
transfer, pledge or other disposition is made in a transaction exempt from or not subject to
registration thereunder.
	 
	 	 	Upon request by CS, Counterparty agrees to promptly remove, or cause to be removed, any
legends referring to any transfer restrictions from such Unregistered Shares upon delivery by
CS to Counterparty of a seller’s representation letter in the form customarily delivered by CS
in connection with resales of restricted securities pursuant to Rule 144 under the Securities
Act, each without any further requirement for the delivery of any certificate, consent,
agreement, opinion of counsel, notice or any other document, any transfer tax stamps or
payment of any other amount or any other action by CS, provided that CS has satisfied the
holding period and other requirements of Rule 144.
	 
	 	 	Notwithstanding anything to the contrary in this Confirmation, at the election of CS by notice
to Counterparty no later than two Exchange Business Days prior to the Scheduled Termination
Date (or in the case of an Accelerated Termination Date, no later than the time of designation
thereof), any delivery of Shares by Counterparty as part of the Counterparty Share Delivery
Amount or pursuant to this Section 3 shall comply with the terms of Annex A hereof.

9

 

	4.	 	Additional Agreements of the Parties:
	 
	4.1	 	For the avoidance of doubt, the last sentence of the first paragraph of 6(e) of the Agreement
shall not apply with respect to this Transaction.
	 
	4.2	 	CSI agrees that in the event of the bankruptcy of Counterparty, CSI shall not have rights or
assert a claim that is senior in priority to the rights and claims available to the
shareholders of the common stock of Counterparty; provided, however, that nothing herein shall
limit or shall be deemed to limit CSI’s right to pursue remedies in the event of a breach by
Counterparty of its obligations and agreements with respect to this Transaction; and provided
further that in pursuing a claim against Counterparty in the event of a bankruptcy, insolvency
or dissolution with respect to Counterparty, CSI’s rights hereunder shall rank on a parity
with the rights of a holder of Shares enforcing similar rights under a contract involving
Shares.
	 
	4.3	 	The parties acknowledge that this Transaction is not secured by any collateral that would
otherwise secure the obligations of Counterparty hereunder.
	 
	4.4	 	The parties agree and acknowledge that CSI is a “financial institution,” “swap participant”
and/or “financial participant” within the meaning of Sections 101(22), 101(53C) and 101(22A)
of Title 11 of the Bankruptcy Code (Title 11 of the United States Code) (the “Bankruptcy
Code”). The parties hereto further agree and acknowledge (A) that this Confirmation is (i) a
“securities contract,” as such term is defined in Section 741(7) of the Bankruptcy Code, with
respect to which each payment and delivery hereunder is a “settlement payment,” as such term
is defined in Section 741(8) of the Bankruptcy Code, and (ii) a “swap agreement,” as such term
is defined in Section 101(53B) of the Bankruptcy Code, with respect to which each payment and
delivery hereunder is a “transfer,” as such term is defined in Section 101(54) of the
Bankruptcy Code, and (B) that CSI is entitled to the protections afforded by, among other
sections, Sections 362(b)(6), 362(b)(17), 546(e), 546(g), 555 and 560 of the Bankruptcy Code.
	 
	5.	 	Share Purchases:
	 
	5.1	 	Any purchases or sales of Shares by CS will be conducted independently of Counterparty. The
timing of any CS purchases or sales of Shares, the number of Shares thus purchased or sold on
any day, the price paid or received per Share for any CS purchases or sales of Shares and the
manner in which any CS purchases or sales of Shares are made, including without limitation
whether such CS purchases or sales are made on any securities exchange or privately, shall be
within the sole discretion of CS.
	 
	5.2	 	CS shall effect purchases of Shares in connection with this Transaction in a manner that
would, if CS were Counterparty or an “affiliated purchaser” (as such term is defined under
Rule 10b-18 (“Rule 10b-18”) under the Exchange Act) of Counterparty, be subject to the
safe harbor provided by Rule 10b-18(b), it being understood that the foregoing restriction
shall not apply to purchases of shares of Common Stock by CS for its own account in

10

 

connection with its independent hedging activities relating to its trading risks in connection
with this Transaction.

	5.3	 	From the date hereof to the Price Adjustment Period Termination Date and on any day during
the Cash Settlement Pricing Period, Counterparty will effect all of its purchase transactions
in Shares through Credit Suisse Securities (USA) LLC.
	 
	5.4	 	Upon request by CSI, Counterparty shall, at least one day prior to the first day of the Price
Adjustment Period, notify CSI of the total number of Shares purchased in Rule 10b-18 purchases
of blocks pursuant to the once-a-week block exception contained in Rule 10b-18(b)(4) by or for
Counterparty or any of its affiliated purchasers during each of the four calendar weeks
preceding the first day of the Price Adjustment Period and during the calendar week in which
the first day of the Price Adjustment Period occurs (“Rule 10b-18 purchase”, “blocks” and
“affiliated purchaser” each being used as defined in Rule 10b-18).
	 
	5.5	 	Neither Counterparty nor any of its affiliates shall take any action that would cause any CS
purchases of Shares in connection with this Transaction not to meet the requirements of the
safe harbor provided by Rule 10b-18 under the Exchange Act if such purchases were made by
Counterparty.
	 
	5.6	 	Notwithstanding anything to the contrary herein or in the Definitions, to the extent that an
Announcement Date for a potential Merger Transaction occurs during the Price Adjustment
Period, or has occurred prior to the Trade Date and such Merger Transaction has not yet closed
as of the Trade Date:

	 	(a)	 	Promptly after request from CSI, Counterparty shall provide CSI with written notice
specifying (i) Counterparty’s average daily Rule 10b-18 purchases (as defined in Rule
10b-18) during the three full calendar months immediately preceding the Announcement Date
that were not effected through CS, and (ii) the number of Shares purchased pursuant to
the proviso in Rule 10b-18(b)(4) for the three full months preceding the Announcement
Date. Such written notice shall be deemed to be a certification by Counterparty to CSI
that such information is true and correct. Counterparty understands that CSI will use
this information in calculating the trading volume for purposes of Rule 10b-18; and
	 
	 	(b)	 	CSI may in its good faith sole discretion, if it determines the resulting reduction
in permissible volume of Rule 10b-18 purchases to be material, designate one or more
Scheduled Trading Days in the period from and including the public announcement thereof
to and including the earlier of the completion of such transaction or the completion of
the vote by target shareholders to be Disrupted Days and extend the Price Adjustment
Period by the number of Disrupted Days so designated.

For the avoidance of doubt, “Merger Transaction” in this Section 5.6 means any merger,
acquisition or similar transaction involving a recapitalization as contemplated by Rule
10b-18(a)(13)(iv).

11

 

	6.	 	Indemnification and Contribution:
	 
	6.1	 	Indemnification by Counterparty:
	 
	 	 	Counterparty agrees to indemnify and hold harmless CSI, its affiliates, their respective
directors, officers, employees, agents, advisors, brokers and representatives and each person
who controls CSI or its affiliates within the meaning of either the Securities Act or the
Exchange Act against, and Counterparty agrees that no indemnified party shall have any
liability to Counterparty or any of its affiliates, officers, directors, or employees for, any
losses, claims, damages, liabilities (whether direct or indirect, in contract, tort or
otherwise) or expenses, joint or several, to which any indemnified party may become subject
under the Securities Act, the Exchange Act or other federal or state statutory law or
regulation, at common law or otherwise, insofar as such losses, claims, damages, liabilities
or expenses (or actions, claims, investigations or proceedings in respect thereof, whether
commenced or threatened) (i) arise out of or relate to (A) actions or failures to act by
Counterparty or (B) actions or failures to act by an indemnified party with the consent of,
upon the direction of, or with the knowledge of Counterparty or (ii) otherwise arise out of or
relate to the Transaction or any related transactions. Counterparty will not be liable under
this Section 6.1 to the extent that any loss, claim, damage, liability or expense is found in
a final and nonappealable judgment by a court to have resulted primarily from the gross
negligence or willful misconduct of CSI. Counterparty agrees to reimburse promptly each such
indemnified party for any legal or other expenses reasonably incurred by them in connection
with investigating or defending any such loss, claim, damages, liability, expense or action
for which Counterparty may be obligated to indemnify CSI. In no event will Counterparty be
obligated to indemnify CSI for any settlement effected without the prior written consent of
Counterparty. This indemnity agreement will be in addition to any liability which
Counterparty may otherwise have.
	 
	6.2	 	Contribution:
	 
	 	 	If the indemnification provided for above is unavailable to any
indemnified party in respect of any losses, claims, damages,
liabilities or expenses referred to herein, then Counterparty, in lieu
of indemnifying such indemnified party, shall contribute to the amount
paid or payable by such indemnified party as a result of such losses,
claims, damages, liabilities or expenses, in such proportion as is
appropriate to reflect not only the relative fault of Counterparty on
the one hand and of CSI on the other in connection with the statements
or omissions which resulted in such losses, claims, damages, expenses
or liabilities, but also any other relevant equitable considerations.
The relative fault of Counterparty on the one hand and CSI on the
other shall be determined by reference to, among other considerations,
whether the misstatement or alleged misstatement of a material fact or
the omission or alleged omission to state a material fact relates to
information supplied by Counterparty or by CSI and the parties’
relative intent, knowledge, access to information and opportunity to
correct or prevent such statement or omission. The amount paid or
payable by a party as a result of the losses, claims, damages,
liabilities and expenses referred to above shall be deemed to include
any legal or other fees or expenses reasonably incurred by such party
in connection with investigating or defending any action or claim.
The parties agree that it

12

 

would not be just and equitable if contribution pursuant to this Section 6.2 were determined
by a method of allocation that does not take account of the equitable considerations referred
to in this paragraph. No person guilty of fraudulent misrepresentation (within the meaning of
Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was
not guilty of such fraudulent misrepresentation.

	7.	 	Distribution Event:
	 
	 	 	Counterparty represents that it is not engaged as of the Trade Date in a distribution, as such
term is used in Regulation M under the Exchange Act (a “Distribution”). If on any day
prior to the second Scheduled Trading Day immediately following the last day of the later of
the Price Adjustment Period or the Cash Settlement Pricing Period, as the case may be,
Counterparty or any of its affiliates or agents makes a Distribution of Shares or any security
for which the Shares are a reference security (as defined in Regulation M) that would, in the
view of CSI, preclude Counterparty from purchasing Shares or cause any such purchases to
violate any law, rule or regulation, Counterparty shall provide to CSI at least one Scheduled
Trading Day’s notice of such Distribution and use reasonable efforts to cause such
Distribution to be completed or otherwise terminated as soon as reasonably practicable given
the circumstances of the Distribution. CSI may, in its good faith sole discretion, designate
such day a Disrupted Day and, in connection with such designation, extend the Price Adjustment
Period or the Cash Settlement Pricing Period, as applicable, by one Valuation Day for each day
that such Distribution continues.
	 
	8.	 	Additional Representations and Warranties of Counterparty:
	 
	 	 	Counterparty hereby represents and warrants to CSI that:
	 
	(a)	 	It has entered into this Transaction

	 	(i)	 	in connection with a duly authorized Share repurchase program publicly
announced on February 8, 2007; and
	 
	 	(ii)	 	solely for the purposes stated in such public disclosures.

	(b)	 	As of the Trade Date and the date, if any, as of which Counterparty elects that Net Share
Settlement shall apply, it has complied with all applicable law, rules and regulations in
connection with disclosure of all material information with respect to its business,
operations or condition (financial or otherwise), and has filed such disclosure as required.
	 
	(c)	 	As of the Trade Date and the date, if any, as of which Counterparty elects that Net Share
Settlement shall apply, all reports and other documents filed by Counterparty with the
Securities and Exchange Commission pursuant to the Exchange Act, when considered as a whole
(with the more recent such reports and documents deemed to amend inconsistent statements
contained in any earlier such reports and documents), do not contain any untrue statement of a
material fact or any omission of a material fact required to be stated therein or necessary to
make the statements therein, in the light of the circumstances in which they

13

 

were made, not misleading. As of each such date, Counterparty is not in possession of any
material nonpublic information regarding Counterparty or the Shares.

	(d)	 	Any purchases made by CS during the Price Adjustment Period or the Cash Settlement Pricing
Period will be made by CS as principal (and not as an agent of Counterparty) and will be
proprietary in nature and not for the benefit or pursuant to the direction of Counterparty.
Without limiting the generality of the foregoing, during the Price Adjustment Period and the
Cash Settlement Pricing Period, the parties agree that they will not communicate in any way
regarding CS’s purchases. The parties further agree that during the Price Adjustment Period
and the Cash Settlement Pricing Period, Counterparty and its agents or representatives shall
not have, and shall not attempt to exert, any influence over how, when or whether CS effects
purchases of Shares. The parties intend that this Confirmation shall constitute a binding
contract satisfying the requirements of Rule 10b-5(1)(C) under the Exchange Act. Counterparty
is entering into this Transaction in good faith and not as part of a plan or scheme to evade
compliance with the federal securities laws, including, without limitation, Rule 10b-5 under
the Exchange Act. Counterparty has not entered into or altered any hedging transaction
relating to the Shares corresponding to or offsetting the Transaction. Counterparty
represents and warrants that it has consulted with its own advisors as to the legal aspects of
its adoption and implementation of this Confirmation under Rule 10b5-1. Counterparty
acknowledges and agrees that any modification, waiver or termination of this Confirmation must
be effected in accordance with the requirements for the amendment or termination of a “plan”
under Rule 10b5-1(c).
	 
	(e)	 	Counterparty is, and shall be as of the date of any payment or delivery by Counterparty
hereunder, solvent and able to pay its debts as they come due, with assets having a fair value
greater than liabilities and with capital sufficient to carry on the businesses in which it
engages.
	 
	(f)	 	Counterparty is not currently prohibited by law, contract or otherwise from purchasing Shares
in a number equal to the Number of Shares during the term of this Transaction.
	 
	9.	 	Additional Covenants of Counterparty:
	 
	 	 	Counterparty shall not at any time prior to the termination of this Transaction communicate,
directly or indirectly, any material nonpublic information concerning itself or the Shares or
purchases or sales of Shares by CS to any Relevant CSI Personnel. For purposes hereof,
“Relevant CSI Personnel” means any employee of CS, except employees that CSI has
notified Counterparty in writing are not Relevant CSI Personnel.
	 
	10.	 	U.S. Private Placement Representations:
	 
	 	 	As this Transaction constitutes, or may constitute, the sale by CSI to Counterparty of a
security or securities (as defined in the Securities Act), in addition to the representations
contained in Section 3 of the Agreement, Counterparty hereby represents to CSI, in accordance
with Section 3 of the Agreement, as follows:

14

 

	(a)          Counterparty is acquiring such securities for its own account as principal, for investment
purposes only, and not with a view to, or for, resale, distribution or fractionalisation
thereof, in whole or in part, and no other person has a direct or indirect beneficial interest
in any such securities acquired by Counterparty;
	 
	(b)          Counterparty represents and warrants that it qualifies as an “eligible contract
participant” as that term is defined in the U.S. Commodity Exchange Act, as amended, and is a
“qualified investor” as that term is defined in the Exchange Act;
	 
	(c)          Counterparty represents and warrants that it is not an “investment company” as that term
is defined in the Investment Company Act of 1940, as amended;
	 
	(d)          Counterparty understands that the offer and sale by CSI of such securities are intended to
be exempt from registration under the Securities Act, by virtue of Section 4(2) thereof. In
furtherance thereof, Counterparty represents and warrants that (i) it has the financial
ability to bear the economic risk of its investment and has adequate means of providing for
its current needs and other contingencies, (ii) it is experienced in investing in options and
similar instruments and has determined that such securities are a suitable investment for it,
(iii) it is an institution that qualifies as an “accredited investor” as that term is defined
in Regulation D under the Securities Act; and
	 
	(e)          Counterparty has been given the opportunity to ask questions of, and receive answers from,
CSI concerning the terms and conditions of such securities and concerning the financial
condition and business operations of CSI and has been given the opportunity to obtain such
additional information necessary in order for Counterparty to evaluate the merits and risks of
purchase of such securities to the extent CSI possesses such information or can acquire it
without unreasonable effort or expense.
	 
	Counterparty hereby acknowledges that it understands and agrees that disposition of any such
securities is restricted under the Agreement, the Securities Act and state securities laws.
For example, such Securities have not been registered under the Securities Act or under the
securities laws of certain states and, therefore, cannot be resold, pledged, assigned or
otherwise disposed of unless they have been registered under the Securities Act and under the
applicable laws of such states or an exemption from such registration is available.

	11.	 	Transfer:
	 
	 	 	Notwithstanding anything to the contrary in the Agreement, CSI may assign or transfer its
rights or obligations under this Transaction, in whole or in part, to any of its affiliates
without the prior written consent of Counterparty, provided that the senior unsecured debt
rating (“Credit Rating”) of such affiliate (or any guarantor of its obligations under
the transferred Transaction) is equal to or greater than the Credit Rating of CSI, as
specified by S&P or Moody’s, at the time of such assignment or transfer.
	 
	12.	 	Account Details:

15

 

	 	 	 	 	 
	           Payments to CSI:

	 	To be advised
	 	 
	 
	 	 	 	 
	           Payments to Counterparty:

	 	To be advised
	 	 

	13.	 	Governing Law; Waiver of Jury Trial:
	 
	13.1	 	The Agreement and this Confirmation, and all disputes arising out of or in connection with
the Agreement and this Confirmation or the subject matter hereof, will be governed by and
construed in accordance with the laws of the State of New York without reference to choice of
law doctrine and each party hereby submits to the non-exclusive jurisdiction of the Courts of
the State of New York or the U.S. federal courts in each case located in the Borough of
Manhattan in New York City.
	 
	13.2	 	CSI and Counterparty hereby irrevocably waive any and all right to trial by jury in any legal
proceeding arising out of or related to the Agreement, this Confirmation or the Transaction
contemplated hereby.
	 
	14.	 	Tax Disclosure:
	 
	 	 	Notwithstanding any provision in this Confirmation, in connection with Section 1.6011-4 of the
Treasury Regulations, the parties hereby agree that each party (and each employee,
representative, or other agent of such party) may disclose to any and all persons, without
limitation of any kind, the U.S. tax treatment and U.S. tax structure of the Transaction and
all materials of any kind (including opinions or other tax analyses) that are provided to such
party relating to such U.S. tax treatment and U.S. tax structure, other than any information
for which nondisclosure is reasonably necessary in order to comply with applicable securities
laws.
	 
	15.	 	Additional Elections:

	 	(a)	 	The Termination Currency shall be U.S. dollars.
	 
	 	(b)	 	For purposes of Section 6(e) of the Agreement, Second Method and Loss shall
apply.
	 
	 	(c)	 	The “Cross-Default” provisions of Section 5(a)(vi) of the Agreement shall apply
to CSI and Counterparty. “Specified Entity” for purposes of Section 5(a)(vi) of the
Agreement shall mean all Significant Affiliates (as defined in Regulation S-X under the
Exchange Act). The “Threshold Amount” shall be $50,000,000 with respect to
Counterparty and shall be $200,000,000 with respect to CSI.
	 
	 	(d)	 	The “Credit Event Upon Merger” provisions of Section 5(b)(iv) of the ISDA
Master Agreement shall apply to CSI and Counterparty.
	 
	 	(e)	 	The “Automatic Early Termination” provision of Section 6(a) of the ISDA Master
Agreement shall not apply to CSI and will not apply to Counterparty.

16

 

	16.	 	Role of Agent:
	 
	 	 	Credit Suisse, New York branch, in its capacity as Agent will be responsible for (A) effecting
this Transaction, (B) issuing all required confirmations and statements to CSI and
Counterparty, (C) maintaining books and records relating to this Transaction in accordance
with its standard practices and procedures and in accordance with applicable law and (D)
unless otherwise requested by Counterparty, receiving, delivering, and safeguarding
Counterparty’s funds and any securities in connection with this Transaction, in accordance
with its standard practices and procedures and in accordance with applicable law.

	 	(a)	 	Agent is acting in connection with this Transaction solely in its capacity as
Agent for CSI and Counterparty pursuant to instructions from CSI and Counterparty.
Agent shall have no responsibility or personal liability to CSI or Counterparty arising
from any failure by CSI or Counterparty to pay or perform any obligations hereunder, or
to monitor or enforce compliance by CSI or Counterparty with any obligation hereunder,
including, without limitation, any obligations to maintain collateral. Each of CSI and
Counterparty agrees to proceed solely against the other to collect or recover any
securities or monies owing to it in connection with or as a result of this Transaction.
Agent shall otherwise have no liability in respect of this Transaction, except for its
gross negligence or willful misconduct in performing its duties as Agent.
	 
	 	(b)	 	Any and all notices, demands, or communications of any kind relating to this
Transaction between CSI and Counterparty shall be transmitted exclusively through Agent
at the following address:
	 
	 	 	 	Credit Suisse, New York branch

Eleven Madison Avenue

New York, NY 10010-3629
	 
	 	 	 	For payments and deliveries:

Facsimile No.: (212) 325 8175

Telephone No.: (212) 325 8678 / (212) 325 3213
	 
	 	 	 	For all other communications:

Facsimile No.: (212) 325 8173

Telephone No.: (212) 325 8676 / (212) 538 5306 / (212) 538 1193 / (212) 538 6886
	 
	 	(c)	 	The date and time of the Transaction evidenced hereby will be furnished by the
Agent to CSI and Counterparty upon written request.
	 
	 	(d)	 	The Agent will furnish to Counterparty upon written request a statement as to
the source and amount of any remuneration received or to be received by the Agent in
connection with the Transaction evidenced hereby.
	 
	 	(e)	 	CSI and Counterparty each represents and agrees (A) that this Transaction is
not unsuitable for it in the light of such party’s financial situation, investment
objectives and needs and (B) that it is entering into this Transaction in reliance

17

 

	 	 	 	upon such tax, accounting, regulatory, legal and financial advice as it deems
necessary and not upon any view expressed by the other or the Agent.
	 
	 	(f)	 	CSI is regulated by The Securities and Futures Authority and has entered into
this Transaction as principal. The time at which this Transaction was executed will be
notified to Counterparty (through the Agent) on request.

18

 

     Please confirm that the foregoing correctly sets forth the terms of our agreement by signing
and returning to us a copy of this Confirmation.

	 	 	 	 	 	 	 
	 	 	Yours sincerely,	 	 
	 
	 	 	CREDIT SUISSE INTERNATIONAL	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Timothy
Bock
	 	 
	 

	 	Name:	 	Timothy Bock 	 	 
	 

	 	Title:	 	Managing Director	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ James J. Jaxon 
	 	 
	 

	 	Name:	 	James J. Jaxon	 	 
	 

	 	Title:	 	Director	 	 
	 
	 	 	 	 	 	 
	 	 	CREDIT SUISSE, NEW YORK BRANCH, AS	 	 
	 	 	AGENT FOR CREDIT SUISSE INTERNATIONAL	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	Yolanda Perez-Wilson 
	 	 
	 

	 	Name:
	 	Yolanda Perez-Wilson	 	 
	 

	 	Title:	 	Assistant Vice President

Complex Product Support	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Melissa Garcia 
	 	 
	 

	 	Name:	 	Melissa Garcia	 	 
	 

	 	Title:	 	Assistant Vice President

Derivatives Support and Control	 	 

Agreed to as of the date first above written.

SILICON IMAGE, INC.

By: /s/
Hal Covert         

Name: Hal Covert

Title: CFO

19

 

SCHEDULE I

					
	Daily Reference Price Adjustment:
	 	USD 0.045 per Share
	 	 

Schedule I

 

 

ANNEX A

Share Delivery Conditions

If CSI has elected that this Annex A applies to the delivery of Shares by Counterparty,

1. In the case of Net Share Settlement, Counterparty shall deliver to CSI on the Settlement Date a
number of Shares equal to the Counterparty Share Delivery Amount divided by the Settlement Price.
“Settlement Price” means, (i) if Registered Offering is applicable, the closing price of the Shares
on the Exchange on the Exchange Business Day immediately preceding the Settlement Date, or (ii) if
Exempt Offering is applicable, such closing price minus a discount for such Shares determined by
the Calculation Agent in a commercially reasonable manner.

2. CSI or any underwriter(s), will sell all, or such lesser portion as may be required hereunder,
of the Shares comprising the Shares delivered by Counterparty pursuant to Net Share Settlement or
Section 3.1 (“Offered Shares”) and any Additional Shares delivered by Counterparty to CSI pursuant
to Paragraph 3 below, commencing on the Settlement Date or the Early Termination Date, as
applicable, and continuing until the date on which the aggregate Net Proceeds (as such term is
defined below) of such sales, as determined by CSI, is equal to the Counterparty Share Delivery
Amount or Payment Amount, as the case may be (such date, the “Final Resale Date”). If the proceeds
of any sale(s) made by CSI or any underwriter(s), net of any fees and commissions (including,
without limitation, underwriting or placement fees) customary for similar transactions under the
circumstances at the time of the offering, together with carrying charges and expenses incurred in
connection with the offer and sale of the Shares (including, but without limitation to, the
covering of any over-allotment or short position (syndicate or otherwise)) (the “Net Proceeds”)
exceed the Counterparty Share Delivery Amount or the Payment Amount, as the case may be, CSI will
refund, in U.S. Dollars, such excess to Counterparty on the date that is three (3) Business Days
following the Final Resale Date, and, if any portion of the Offered Shares remains unsold, CSI
shall return to Buyer on that date such unsold Shares.

3. If the Calculation Agent determines that the Net Proceeds received from the sale of Offered
Shares or any Additional Shares (if any) pursuant to this Paragraph 3 are less than the
Counterparty Share Delivery Amount or the Payment Amount, as the case may be, (the amount in U.S.
Dollars by which the Net Proceeds are less than the Counterparty Share Delivery Amount or the
Payment Amount, as the case may be, being the “Shortfall” and the date on which such determination
is made, the “Deficiency Determination Date”), Counterparty shall on the Exchange Business Day next
succeeding the Deficiency Determination Date (the “Makewhole Notice Date”) deliver to CSI a notice
of Counterparty’s election that Counterparty shall either (i) pay an amount in cash equal to the
Shortfall on the day that is one (1) Business Day after the Makewhole Notice Date, or (ii) deliver
additional Shares. If Counterparty elects to deliver to CSI additional Shares, then Counterparty
shall deliver additional Shares in compliance with the terms and conditions set forth in Paragraph
4 (the “Additional Shares”) on the first Clearance System Business Day which is also an Exchange
Business Day following the Makewhole Notice Date in such number as the Calculation Agent reasonably
believes would have a market value on that Exchange Business Day equal to the Shortfall. Such
Additional Shares shall be sold by CSI in accordance with the provisions above; provided that if
the sum of the Net Proceeds from the sale of the originally delivered Shares and the Net Proceeds
from the sale of any Additional Shares is less than the Counterparty Share Delivery Amount or the
Payment Amount, as the case

 

 

may be, then Counterparty shall, at its election, either make such cash payment or deliver to CSI
further Additional Shares until such Shortfall has been reduced to zero. If the sum of the Net
Proceeds from the sale of the originally delivered Shares and the Net Proceeds from the sale of any
Additional Shares exceeds the Counterparty Share Delivery Amount or the Payment Amount, as the case
may be, then CSI will refund, in U.S. Dollars, such excess to Counterparty on the date that is
three (3) Business Days following the relevant Final Resale Date and, if any portion of the Offered
Shares or the Additional Shares remains unsold, CSI shall return to Counterparty on the date that
is two (2) Business Days following the Final Resale Date such unsold Shares. Notwithstanding
anything to the contrary herein, in no event shall Counterparty be required to deliver more than
thirty million Shares (as such number may be adjusted for stock splits or similar events).

4. Counterparty shall elect whether Registered Offering or Exempt Offering shall be the offering
method by which the Shares will be sold by CSI:

     (i) If Registered Offering is elected, then Shares shall be sold by CSI only pursuant to an
effective Registration Statement. Counterparty may elect Registered Offering only if all of the
following conditions are met:

     (a) a registration statement covering public resale of such Shares by CSI (the
“Registration Statement”) shall have been filed with, and declared effective by, the
Securities and Exchange Commission under the Securities Act on or prior to the Price
Adjustment Period Termination Date (or, with respect to Shares delivered pursuant to Section
3 of the Confirmation, the Merger Date, the Tender Offer Date or the date of the occurrence
of the Insolvency, Delisting or the Early Termination Date (as the case might be)) (the
“Registration Date”), and no stop order shall be in effect with respect to the
Registration Statement; a printed prospectus relating to the Shares (including any
prospectus supplement thereto, the “Prospectus”) shall have been delivered to CSI,
in such quantities as CSI shall reasonably have requested, on or prior to the Registration
Date;

     (b) the form and content of the Registration Statement and the Prospectus (including,
without limitation, any sections describing the plan of distribution) shall be satisfactory
to CSI;

     (c) as of or prior to the Registration Date, CSI and its agents shall have been
afforded a reasonable opportunity to conduct a due diligence investigation with respect to
Counterparty customary in scope for underwritten offerings of equity securities and the
results of such investigation are satisfactory to CSI, in its discretion;

     (d) an opinion of counsel for Counterparty and a “cold comfort” letter signed by the
independent public accountants who have issued a report on Counterparty’s financial
statements included in such Registration Statement shall have been delivered to CSI or its
affiliates before [     ], each addressed to CSI and any underwriter, and each in
form and substance satisfactory to CSI and any such underwriter and their respective counsel
covering substantially the same matters with respect to such Shares and the offering, sale
and issuance thereof and the financial statements of Counterparty as

 

 

are customarily covered in opinions of Counterparty’s counsel and in accountants’
letters delivered to underwriter(s) in underwritten public offerings of securities and, in
the case of the accountants’ letter, such other financial matters as CSI or its affiliates
may have reasonably requested; and

     (e) as of the Registration Date, an agreement (the “Underwriting Agreement”)
shall have been entered into with CSI in connection with the public resale of the Shares by
CSI substantially similar to underwriting agreements customary for underwritten offerings of
equity securities, in form and substance satisfactory to CSI, which Underwriting Agreement
shall include, without limitation, provisions substantially similar to those contained in
such underwriting agreements relating to the indemnification of, and contribution in
connection with the liability of, CSI and its affiliates.

     (ii) If Exempt Offering is elected, then Shares shall be sold by CSI pursuant to an offering
that is exempt from the registration requirement of the Securities Act (an “Exempt Offering”) and
Counterparty may elect Exempt Offering only if (a) as of or prior to the Registration Date, CSI and
any potential purchaser of any such shares from CSI (or any affiliate of CSI designated by CSI)
identified by CSI shall have been afforded a commercially reasonable opportunity to conduct a due
diligence investigation with respect to Counterparty customary in scope for private placements of
equity securities (including, without limitation, the right to have made available to them for
inspection all financial and other records, pertinent corporate documents and other information
reasonably requested by them); (b) as of the Registration Date, an agreement (a “Private
Placement Agreement”) shall have been entered into between Counterparty and CSI (or any
affiliate of CSI designated by CSI) in connection with the private placement of such shares by
Counterparty to CSI (or any such affiliate) and the private resale of such shares by CSI (or any
such affiliate), substantially similar to private placement purchase agreements customary for
private placements of equity securities, in form and substance commercially reasonably satisfactory
to CSI, which Private Placement Agreement shall include, without limitation, provisions
substantially similar to those contained in such private placement purchase agreements relating to
the indemnification of, and contribution in connection with the liability of, CSI and its
affiliates, and shall provide for the payment by Counterparty of all commercially reasonable fees
and expenses in connection with such resale, including all commercially reasonable fees and
expenses of counsel for CSI, and shall contain representations, warranties and agreements of
Counterparty reasonably necessary or advisable to establish and maintain the availability of an
exemption from the registration requirements of the Securities Act for such resales; (c)
Counterparty shall either (x) represent that it is not aware of any material non-public information
regarding Counterparty or the Shares as of the date it elects an Exempt Offering, or (y) before any
purchasers decide to purchase the Shares, enter into confidentiality agreements with such
purchasers relating to any material non-public information regarding Counterparty or the Shares;
and (d) Counterparty acknowledges that any Shares sold pursuant to an Exempt Offering may be sold
at prices that are less than the prices that might otherwise be available if such Shares were to be
sold pursuant to a registered public offering or at prices observed in the secondary market.

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