Document:

exv10w35

 

CONFIDENTIAL
TREATMENT REQUESTED

EXHIBIT 10.35

CONSULTING AGREEMENT

This Consulting Agreement (“Agreement”) is executed on March 15, 2006 with an effective
date as of March 24, 2006 (“Effective Date”), by and between Silicon Image, Inc., a Delaware
corporation maintaining its principal place of business at 1060 E. Arques Ave., Sunnyvale,
California 94085 (“Company”) and Dr. David D. Lee (“Dr. Lee”).

WHEREAS, Dr. Lee was a founder of the Company, and has served as the Company’s Chief Executive
Officer and Chairman of the Board;

WHEREAS, after more than eleven years of service to the Company, Dr. Lee has expressed a desire to
transition from full-time employment by the Company and has agreed with Company to continue to
advise and provide consulting services to the Company, and also pursue other interests;

WHEREAS, Dr. Lee is willing to perform such services, on the terms set forth below;

WHEREAS, Dr. Lee is working with the Business Strategy Committee of the Board of Directors of the
Company (the “Business Strategy Committee”) and the Chief Executive Officer, has
substantial knowledge of the Company’s technology and strategy, and may continue to have access to
confidential information of Company, and therefore agrees to the non-competition provision in
Section 13 below;

NOW THEREFORE, in consideration of the mutual promises contained herein, Company and Dr. Lee agree
as follows:

	 	1.	 	Termination of Employment.

	 	A.	 	Effective as of the Effective Date, Dr. Lee resigns as an employee of
Company, and the Severance Agreement (as defined in Section 19 below) between
Company and Dr. Lee is terminated as set forth in Section 19. Company agrees that
the indemnity agreement entered into as of November 25, 2002 by Company and Dr. Lee
(the “Indemnity Agreement”) will continue to remain in effect, in
accordance with its terms, after the Effective Date. Furthermore, Company agrees
that any other indemnification and exculpation provisions set forth in Company’s
Certificate of Incorporation and By-Laws, and any other indemnification and
exculpation provisions existing on the Effective Date, shall remain in full force
and effect with respect to Dr. Lee in accordance with their terms.
	 
	 	B.	 	Dr. Lee’s resignation from employment by the Company as of the
Effective Date will not result in any acceleration of his existing options to
purchase shares of the Company’s stock. Stock options previously granted to Dr.
Lee by the Company will continue to vest while Dr. Lee renders services hereunder
and remain exercisable according to their terms, provided that upon termination of
his Agreement, Dr. Lee’s post-termination exercise period (other than the
applicable period for cause, death or disability) shall be nine (9) months;
provided further that if Dr. Lee is terminated pursuant to Dr. Lee’s purported
violation of Section 13 below, Dr. Lee’s post-termination exercise period shall be
reduced to three (3) months. Dr. Lee expressly acknowledges that Dr. Lee has
consulted his personal tax advisor as to the effect of Section 409A of the Internal
Revenue Code of 1986, as amended (“Section 409A”). The Company has consulted with
its tax advisors regarding Section 409A.
	 
	 	C.	 	For a period of eighteen months following the Effective Date of this
Agreement, (a)

 

 

	 	 	 	Company will reimburse Dr. Lee for COBRA premiums actually paid by Dr. Lee for Dr.
Lee and his eligible family members to continue to receive medical insurance
coverage at a level commensurate with the coverage provided to Dr. Lee immediately
prior to the Effective Date, or at Dr. Lee’s election the Company will make a lump
sum payment equal to the eighteen month COBRA premium so that Dr. Lee may purchase
medical insurance coverage; provided, that the foregoing obligation shall cease if a
third party commences payment of Dr. Lee’s COBRA or medical insurance premiums, and
(b) Company will provide Dr. Lee with administrative assistant support.

	 	2.	 	Services: Dr. Lee agrees to perform the services described in Exhibit A (the
“Services”), and to devote such time as is reasonably necessary to perform the
Services. Dr. Lee will perform all Services in a diligent and good faith manner and
Company will work in good faith to support Dr. Lee’s work in connection with such Services.
	 
	 	3.	 	Payment for Services: Company will pay Dr. Lee the fees set forth in Exhibit A
for the performance of the Services during the term of this Agreement.
	 
	 	4.	 	Term: This Agreement will commence on the Effective Date and will continue until the
first anniversary of the Effective Date or until termination as provided in Section 14
below. This Agreement may be extended for an additional year upon mutual written agreement
of the parties hereto.
	 
	 	5.	 	Relationship of Parties: Dr. Lee will perform the Services under the general direction
of Company’s Chief Executive Officer. Dr. Lee, however, will determine in Dr. Lee’s sole
discretion the manner and means by which the services are accomplished, subject to the
express condition that Dr. Lee will at all times comply with applicable law. Dr. Lee is an
independent contractor without authority to bind Company by contract or otherwise, and
neither Dr. Lee nor Dr. Lee’s employees and agents are agents or employees of Company.
	 
	 	6.	 	Time Commitment: It is anticipated that Dr. Lee will spend at least eighty percent
(80%) of his work time, calculated on a quarterly basis, on the Services covered by this
Agreement. Company recognizes that the term of this Agreement will be a transition period
that will allow Dr. Lee to transition to other employment, and that this Agreement is not
intended to preclude Dr. Lee from working on other matters, subject to the terms and
conditions of this Agreement.
	 
	 	7.	 	Employment Taxes and Benefits: Dr. Lee acknowledges and agrees that Dr. Lee is
obligated to report as income all compensation received by Dr. Lee pursuant to this
Agreement, and Dr. Lee will indemnify, hold harmless and, at Company’s request, defend
Company and Company’s subsidiaries, affiliates, directors, officers, employees, agents and
independent contractors to the extent of any obligation imposed on Company to pay any
withholding taxes, social security, unemployment or disability insurance or similar items,
including interest and penalties thereon, in connection with any payments made to Dr. Lee
by Company pursuant to this Agreement.
	 
	 	8.	 	Indemnification:

A. Dr. Lee will indemnify, hold harmless Company against all claims, liabilities,
damages, losses and expenses, including but not limited to reasonable attorneys’ fees
and costs of suit, finally adjudicated to have arisen out of Dr. Lee’s gross negligence
and willful misconduct or any violation of Section 9 below; provided
however, that Dr. Lee shall not be obligated to indemnify Company for: (i)
settlements entered into without first obtaining Dr. Lee’s written consent; provided
such consent shall not be unreasonably withheld; (ii) any action taken at

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the express direction of Company; or (iii) to the extent such indemnification is
adjudicated to be unlawful.

B. Company will defend, indemnify and hold harmless Dr. Lee from and against all claims,
liabilities, damages, losses and expenses arising out of Dr. Lee’s lawful actions under
the Agreement that are taken at the direction of the Company; provided
however, that the Company shall not be obligated to defend, indemnify or hold
harmless Dr. Lee under this Agreement for: (i) any matter for which Dr. Lee is obligated
to indemnify the Company pursuant to Section 8(A) above; (ii) proceedings and claims
initiated or brought voluntarily by Dr. Lee and not by way of defense, except with
respect to proceedings specifically authorized by the Board of Directors of the Company
or brought to establish or enforce a right to indemnification arising under this
Agreement or any statute or law or otherwise, but such indemnification may be provided
by Company in specific cases if the Board finds it appropriate, (iii) settlements
entered into without the Company’s authorization and prior written consent; (iv) an
action for an accounting of profits realized by Dr. Lee in violation of Section 16 of
the Securities Exchange Act of 1934 or other similar law; or (v) to the extent such
indemnification is adjudicated to be unlawful. As a condition of Company’s obligations
under this Section 8.B (collectively, “Company Indemnification Obligations”),
Dr. Lee will (1) provide Company with prompt written notice of any claim, liability,
damage, loss or expense (collectively, “Claim Against Dr. Lee”) that will give
rise to Company Indemnification Obligations (provided that any failure to provide such
prompt written notice shall only limit coverage to the extent Company is prejudiced by
such failure to provide prompt written notice), (2) permit Company to have sole control
of the defense, settlement, adjustment or compromise of any such Claim Against Dr. Lee;
provided, that (a) Company will not make any acknowledgment of culpability on Dr. Lee’s
behalf without Dr. Lee’s consent, and (b) Dr. Lee may secure his own legal
representation at his sole expense, who shall not control or participate in the defense,
provided further that if the Company and Dr. Lee are named as co-defendants in an action
and there is a conflict of interest that prevents the Company from representing Dr. Lee
in such action then, solely with respect to the issues where such conflict of interest
exists, Company will no longer control Dr. Lee’s defense in such action and will pay for
the reasonable fees and expenses of Dr. Lee’s counsel in such action, and (3) provide
Company with all reasonable assistance (which shall not be construed to include the
payment of funds by Dr. Lee) in the defense, settlement, adjustment or compromise of any
Claim Against Dr. Lee. Nothing herein shall limit Company’s obligations existing as of
the Effective Date (including obligations with respect to facts and circumstances
occurring after the Effective Date) to indemnify Dr. Lee outside of this Agreement,
including under the Indemnity Agreement.

	 	9.	 	Proprietary Information: The product of all work performed under this Agreement for
Company (“Work Product”), will be the sole property of Company, and Dr. Lee hereby
assigns to Company all right, title and interest, including but not limited to all patent
rights (including rights in any patent application of Company in which Dr. Lee is listed as
an inventor), copyright, mask work rights, trade secret rights and other proprietary rights
therein. During and after the term of this Agreement Dr. Lee will assist Company and its
nominees in every proper way, at Company’s expense, to document, secure, maintain and
defend for Company’s own benefit in any and all countries all copyrights, patent rights,
mask work rights, trade secret rights and other proprietary rights in and to the Work
Product. Since the Work Product is the sole property of Company, Dr. Lee will not seek to
charge or demand payment outside of this Agreement for Company use of Work Product or other
exploitation of its ownership rights in the Work Product.
	 
	 	10.	 	Other Information: Dr. Lee acknowledges that Company has not asked him to use any other

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	 	 	 	party’s confidential or proprietary information to perform the Services.

	 	11.	 	LIMITATION OF LIABILITY.

A.      IN NO EVENT WILL DR. LEE BE LIABLE TO COMPANY FOR ANY LOSS, DAMAGES, CLAIMS OR COSTS
WHATSOEVER FOR CONSEQUENTIAL, INDIRECT OR INCIDENTAL DAMAGES, ANY LOST PROFITS OR LOST
SAVINGS, ANY DAMAGES RESULTING FROM BUSINESS INTERRUPTION OR ANY PUNITIVE DAMAGES EVEN IF
DR. LEE HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH LOSS, DAMAGES, CLAIMS OR COSTS. THE
FOREGOING LIMITATIONS AND EXCLUSIONS APPLY TO THE EXTENT PERMITTED BY APPLICABLE LAW. DR.
LEE’S AGGREGATE LIABILITY AND THAT OF HIS AFFILIATES AND SERVICE PROVIDERS UNDER OR IN
CONNECTION WITH THIS AGREEMENT (INCLUDING UNDER ANY INDEMNITY SET FORTH IN THIS AGREEMENT)
WILL BE LIMITED TO THE AMOUNT PAID TO DR. LEE UNDER THIS AGREEMENT. THIS LIMITATION WILL
APPLY EVEN IN THE EVENT OF A FUNDAMENTAL OR MATERIAL BREACH OR A BREACH OF THE FUNDAMENTAL
OR MATERIAL TERMS OF THIS AGREEMENT.

B.      IN NO EVENT WILL COMPANY BE LIABLE TO DR. LEE FOR ANY LOSS, DAMAGES, CLAIMS OR COSTS
WHATSOEVER FOR CONSEQUENTIAL, INDIRECT OR INCIDENTAL DAMAGES, ANY LOST PROFITS OR LOST
SAVINGS, ANY DAMAGES RESULTING FROM BUSINESS INTERRUPTION OR ANY PUNITIVE DAMAGES EVEN IF
COMPANY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH LOSS, DAMAGES, CLAIMS OR COSTS. THE
FOREGOING LIMITATIONS AND EXCLUSIONS APPLY TO THE EXTENT PERMITTED BY APPLICABLE LAW.
COMPANY’S AGGREGATE LIABILITY (IN ADDITION TO COMPENSATION PAYMENTS TO BE MADE TO DR. LEE
HEREUNDER) AND THAT OF ITS AFFILIATES AND SERVICE PROVIDERS UNDER OR IN CONNECTION WITH THIS
AGREEMENT (INCLUDING UNDER ANY INDEMNITY SET FORTH IN THIS AGREEMENT) WILL BE LIMITED TO
$1,000,000. THIS LIMITATION WILL APPLY EVEN IN THE EVENT OF A FUNDAMENTAL OR MATERIAL
BREACH OR A BREACH OF THE FUNDAMENTAL OR MATERIAL TERMS OF THIS AGREEMENT. THE LIMITATION
SET FORTH IN THIS SECTION 11(B) SHALL NOT APPLY TO COMPANY’S OBLIGATIONS UNDER DR. LEE’S
OPTIONS, INDEMNITY AGREEMENT OR EXCULPATION OR INDEMNITY PROVISIONS OF COMPANY’S CERTIFICATE
OF INCORPORATION AND BYLAWS.

	 	12.	 	Confidentiality: Dr. Lee will not, during or for a period of two and one-half years
following the termination of this Agreement, directly or indirectly (a) use any of
Company’s Confidential Information for the benefit of anyone other than Company, or (b)
disclose any of Company’s Confidential Information to anyone other than an employee or
independent contractor of Dr. Lee who is obligated by written contract to protect the
confidentiality thereof and requires such information to perform hereunder, or an employee,
director, attorney or agent of Company, or a person designated by Company as an authorized
recipient of Company’s Confidential Information. Company’s Confidential Information
includes without limitation all confidential information related to the Services, Company’s
confidential know-how, all information regarding Company not known to the general public,
and all confidential information disclosed to Company by third parties (whether acquired or
developed by Dr. Lee during Dr. Lee’s performance under
this Agreement or disclosed by Company employees). Confidential Information does not
include information which (c) is known to Dr. Lee at the time of disclosure to Dr. Lee by
Company, (d) has become publicly known through no wrongful act of Dr. Lee, (e) has been
rightfully received by Dr. Lee from a third party who is authorized to make such disclosure,
or (f) has been independently developed by Dr. Lee other than pursuant to this Agreement.
	 
	 	13.	 	Non-Competition: Dr. Lee agrees not to solicit the services of any of Company’s
employees during the term of this Agreement. In addition to not soliciting the services of
Company’s

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employees, Dr. Lee agrees not to make a job offer to any Company employees while
they are employed by Company during the term of this Agreement. During the term of this
Agreement Dr. Lee shall not Compete With The Company in any geographic area where the
Company or any subsidiary of the Company engages in business or maintains sales or service
representatives or employees. “Compete With The Company” means, directly or
indirectly, to engage in (whether as an employee, consultant, proprietor, partner, director
or otherwise), or have any ownership interest in (other than a 1% or less passive interest
in a publicly traded company), or participate in the financing, operation, management, or
control of, any person, firm, corporation or business that engages in a “Restricted
Business”, as such term is defined hereafter. “Restricted Business” shall mean any
business that is engaged or involved in (or, to Dr. Lee’s knowledge after due inquiry,
planning or preparing to engage or become involved in) research, development, production,
marketing, leasing, selling or servicing any product, product line or service (but does
not include a company that has multiple divisions or business units, and where the product
or services are related to a division or unit for which Dr. Lee provides no direct or
indirect services or oversight, and for which Dr. Lee does not have any other decision
making responsibility) that competes, or would compete, with any product, product line or
service that is being designed, developed, manufactured, marketed or sold by the Company
or any subsidiary of the Company (or, to Dr. Lee’s knowledge with a product or service that
the Company or any such subsidiary is planning or preparing to design, develop,
manufacture, market or sell). In the event that Company decides not to pursue an
opportunity presented to Company by Dr. Lee, Dr. Lee shall have the right to request that
the Company’s Board of Directors (the “Board”) determine whether or not Dr. Lee’s
pursuit of such opportunity would result in a violation of the foregoing provisions of this
Section 13. Notwithstanding the foregoing, the Company is aware of Dr. Lee’s position on
the board of directors of, and Dr. Lee’s investment in, Synerchip Co., Ltd. and, provided
Dr. Lee complies with the guidelines adopted by the Company’s Board of Directors for this
purpose and attached hereto as Exhibit B, such service and investment will not be
considered to Compete With The Company.

	 	14.	 	Termination: Dr. Lee may immediately terminate this Agreement upon Company Cause.
“Company Cause” means any breach of this Agreement, if such breach causes material
harm to Dr. Lee. The Company may immediately terminate this Agreement upon Dr. Lee Cause.
“Dr. Lee Cause” means (i) any breach of this Agreement, if such breach causes
material harm to the Company; (ii) any gross negligence or willful misconduct by Dr. Lee in
Dr. Lee’s performance of Services that causes harm to the Company; (iii) Dr. Lee’s
repeated failure to diligently perform Services in a reasonable manner pursuant to this
Agreement; (iv) Dr. Lee’s commission of a crime carrying a minimum sentence of one year as
determined under the laws of any nation or political subdivision thereof in which such
occurs (or is deemed to occur) or violation of the Foreign Corrupt Practices Act or
successor or replacement legislation that results in liability to Company; (v) Dr. Lee’s
commission of any act of fraud, embezzlement or dishonesty or breach of fiduciary duties
owed to the Company; or (vi) Dr. Lee’s abuse of alcohol or controlled substances that has a
detrimental effect upon Dr. Lee’s performance of Services. If Dr. Lee claims he
has satisfied a Milestone and the Business Strategy Committee determines that Dr. Lee has
not satisfied the Milestone, Dr. Lee may terminate the Agreement but shall not be entitled
to any further Milestone payments. Dr. Lee may terminate this Agreement upon any of the events
set forth in clauses (a) through (e) of Section 18.1 of Company’s 1999 Equity Incentive
Plan, as amended, other than a transaction in which each of the following are true (i) the
stockholders of Company before the transaction own more than 40% of the outstanding shares
of the combined company, and (ii) members of the Board of Directors of Company prior to the
announcement of the transaction represent a majority of the directors following such
transaction.

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	 	15.	 	Effect of Termination: Upon the termination of this Agreement pursuant to Section 14 or
upon expiration of the term of this Agreement, each party shall be released from all
obligations and liabilities to the other occurring or arising after the date of such
termination under this Agreement, as applicable, except that any such termination shall not
relieve Dr. Lee or Company of their respective obligations and agreements under any of
Sections 1, 3, 7, 8, 9, 10, 11, 12, 14, 15, 17 , 18 and 19 hereof, nor shall any such
termination relieve Dr. Lee or Company from any liability arising from any breach of this
Agreement, provided, however if this Agreement is terminated by either
party pursuant to Section 14, Company shall not be obligated to pay for any Services that
have not been rendered or any milestones set forth in Exhibit A that have not been
accomplished.
	 
	 	16.	 	Assignment: The rights and liabilities of the parties hereto shall bind and inure to
the benefit of their respective successors, executors and administrators, as the case may
be; provided that, since Company has specifically contracted for Dr. Lee’s services, Dr.
Lee may not assign or delegate his obligations under this Agreement either in whole or in
part without the prior written consent of Company.
	 
	 	17.	 	Governing Law; Severability: This Agreement shall be governed by and construed in
accordance with the laws of the State of California. Both parties agree that arbitration
between the parties will take place in Santa Clara County, California and further agree
that any dispute regarding the interpretation or enforcement of this Agreement shall be
decided by confidential, final and binding arbitration conducted by Judicial Arbitration
and Mediation Services (“JAMS”) under the then existing JAMS rules rather than by
litigation in court, trial by jury, administrative proceeding or in any other forum. The
decision of such arbitration may be enforced by the party in whose favor it is given in any
court with jurisdiction over the party against whom enforcement is sought. If any
provision of this Agreement other than those provisions relating to the assignment of
rights to the Company is found by a court of competent jurisdiction to be unenforceable for
any reason, the remainder of this Agreement shall continue in full force and effect.
	 
	 	18.	 	Export: Dr. Lee will not export outside the United States, if a United States citizen,
or re-export, if a foreign citizen, any Confidential Information or direct product thereof,
except as permitted by the laws and regulations of the United States and as directed by
Company. Company shall not direct Dr. Lee to export outside the United States any
Confidential Information or direct product thereof, except as permitted by the laws and
regulations of the United States.
	 
	 	19.	 	Complete Understanding; Modification; Waiver of Benefits under Severance Agreement:
This Agreement constitutes the full and complete understanding and agreement of the parties
relating to the subject matter hereof and supersedes all prior understandings and
agreements relating to such subject matter. Any waiver, modification, or amendment of any
provision of this Agreement shall be effective only if in writing and signed by the parties
hereto. Where there is a conflict between the terms and conditions of this Agreement and
Exhibit A, the terms of this Agreement will control. This Agreement may be executed in one
or more counterparts, each of which shall for all purposes be deemed to be an original and
all of which shall constitute the same instrument. Dr. Lee hereby waives any benefits under that certain August 15, 1997 Amended
and Restated Severance Agreement between Dr. Lee and Company as amended on January 24, 2000
and March 29, 2001 (collectively, the “Severance Agreement”), and such agreement
(including amendments to such agreement) is hereby terminated without any obligation being
owed to the other other than as set forth herein.
	 
	 	20.	 	Notices: Any notices required or permitted hereunder will be given to the appropriate
party at the address specified below or at such other address as the party may specify in
writing. Such notice

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	 	 	 	shall be deemed given upon personal delivery to the appropriate
address or three (3) days after the date of mailing if sent by certified or registered
mail.
	 
	 	21.	 	Reporting: Dr. Lee will report to the Chief Executive Officer and/or the Board on the
status of Dr. Lee’s performance hereunder upon Company’s request and shall make a report to
the Business Strategy Committee on a quarterly basis of the plans described in the
milestones set forth in Section II of Exhibit A.

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IN WITNESS WHEREOF, the parties hereto have signed this Agreement as of the date first written
above.

	 	 	 
	COMPANY
	 	CONSULTANT
	 	 	 
	Silicon Image, Inc.
	 	Name: David D. Lee
	 
	 	 
	1060 E. Arques Ave.
	 	Address Omitted
	 
	 	 
	Sunnyvale, California 94085
	 	 
	 
	 	 
	 	 	 
	 	 	 
	 
	 	 
	 	 	 
	 	 	 
	Signature: /s/ Steve Tirado
	 	Signature: /s/ David D. Lee
	 
	 	 
	Name: Steve Tirado	 	 
	 
	 	 
	Title: Chief Executive Officer	 	 
	 
	 	 

Exhibit A – Statement of Work

Exhibit B – Guidelines for Dr. Lee’s Investment and Service with Synerchip Co., Ltd.

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Exhibit A

Statement of Work

This Statement of Work is pursuant to the Consulting Agreement (the “Agreement”) effective as of
March 24, 2006 between Silicon Image, Inc. and David D. Lee (“Dr. Lee”). All capitalized terms
used but not otherwise defined herein shall have the meanings given such terms in the Agreement.
This Statement of Work shall be governed by all the terms and conditions of the Agreement.

I. Services to be Provided: Dr. Lee shall render such services as may be necessary to
complete in a professional manner the projects described as follows:

	 	•	 	Assist in successful transition of relationships and strategy formulation activities
for CEO.
	 
	 	•	 	Attend meetings of the Company’s board of directors to which Dr. Lee has been invited
by the Company’s board of directors.
	 
	 	•	 	Assist the Company in maintaining and improving Company communications [***]
	 
	 	•	 	Assist in the development of relationships for Simplay Labs, LLC [***]
	 
	 	•	 	[***]
	 
	 	•	 	[***]
	 
	 	•	 	Assist the Company in the development of the UDI 1.0 standard and test specification.
	 
	 	•	 	Assist [***] to complete the development of [***]
	 
	 	•	 	[***]

Company will provide commercially reasonable resources to assist in the provision of the foregoing
services.

II. Fee Schedule: Dr. Lee shall be paid $40,000 per month during the term of the
Agreement. Dr. Lee agrees that any reimbursable travel and entertainment expenses are to be
invoiced to Company at cost and must be in accordance with Company’s travel and expenses policy.

Dr. Lee shall also be paid as set forth below for accomplishment of the milestones set forth below
by their applicable Due Dates:

	1.	 	Milestone #1:

[***]

Payment: $125,000 upon accomplishment of Milestone #1 by July 15, 2006
	 
	2.	 	Milestone #2:

[***]

Payment: $250,000 upon accomplishment of Milestone #2 by October 15, 2006
	 
	3.	 	Milestone #3:

[***]

Payment: $125,000 upon accomplishment of Milestone #3 by December 31, 2006
The Business Strategy Committee shall act in good faith in determining whether to accept or
reject a plan presented by Dr. Lee.

 

*** Note: Confidential treatment has been requested with respect to the information contained within the [***] marking.
Such portions have been omitted from this filing and have been filed
separately with the Securities and Exchange Commission.

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The
Business Strategy Committee shall act in good faith in determining
whether to accept or reject a plan presented by Dr. Lee.

III. Counterparts: This Statement of Work may be executed in one or more counterparts, each of
which shall for all purposes be deemed to be an original and all of which shall constitute the same
instrument.

IN WITNESS WHEREOF, the parties hereto have signed this Statement of Work as of the date first
written above.

	 	 	 
	COMPANY
	 	DR. LEE
	 	 	 
	 	 	 
	Silicon Image, Inc.
	 	Name: David D. Lee
	 
	 	 
	1060 E. Arques Ave.
	 	Address Omitted
	 
	 	 
	Sunnyvale, California 94085
	 	 
	 
	 	 
	 	 	 
	 	 	 
	 
	 	 
	 	 	 
	 	 	 
	Signature: /s/ Steve Tirado
	 	Signature: /s/ David D. Lee
	 
	 	 
	Name: Steve Tirado	 	 
	 
	 	 
	Title: Chief Executive Officer	 	 
	 
	 	 

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Exhibit B

Guidelines for Dr. Lee’s Investment and Service with Synerchip Co., Ltd. (“Synerchip”)

Dr. Lee agrees not to disclose Company confidential information to Synerchip or Synerchip
confidential information to Company, without the express consent of the party owning the
confidential information.

If Dr. Lee is asked by Company or Synerchip to negotiate a deal with the other party, Dr. Lee
agrees to disclose that request, and his role in the negotiations, to the other party.

11<PAGE>

                                                                EXHIBIT 10.14(b)

                              AMENDMENT NUMBER TWO
                                       to
            Amended and Restated Master Repurchase Agreement dated as
       of May 13, 2002, amended and restated to and including May 21, 2004
                                     between
          NEW CENTURY FUNDING A, a Delaware statutory trust, as Seller
                                       and
                         BANK OF AMERICA, N.A., as Buyer

        This AMENDMENT NUMBER TWO (this "Amendment Number Two") is made and is
effective as of this 5th day of May 2005 (the "Effective Date") between NEW
CENTURY FUNDING A, a Delaware statutory trust ("Seller") and BANK OF AMERICA,
N.A., a national banking association ("Buyer").

                                    RECITALS

                A. Seller and Buyer entered into that certain Amended and
Restated Master Repurchase Agreement dated as of May 13, 2002, amended and
restated to and including May 21, 2004 (as amended, supplemented or otherwise
modified from time to time, the "Master Repurchase Agreement").

                B. Seller has requested that Buyer further modify the Master
Repurchase Agreement to extend the term thereof and make such other
modifications to the Master Repurchase Agreement set forth herein and Buyer has
agreed to make such modifications to the Master Repurchase Agreement subject to
the terms of this Amendment Number Two.

                C.Seller and Buyer each have agreed to execute and deliver this
Amendment Number Two on the terms and conditions set forth herein.

                NOW, THEREFORE, in consideration of the premises and the mutual
covenants contained herein and in the Master Repurchase Agreement, the receipt
and sufficiency of which are hereby acknowledged, the parties hereto agree to
the following:

                1. Miscellaneous. For all purposes of this Amendment Number Two,
except as otherwise expressly provided or unless the context otherwise requires,
(a) unless otherwise defined herein, all capitalized terms used herein shall
have the meanings attributed to them by the Master Repurchase Agreement, (b) the
capitalized terms expressly defined in this Amendment Number Two have the
meanings assigned to them in this Amendment Number Two and include (i) all
genders and (ii) the plural as well as the singular, (c) all references to words
such as "herein", "hereof" and the like shall refer to this Amendment Number Two
as a whole and not to any particular article or section within this Amendment
Number Two, (d) the term "include" and all variations thereon shall mean
"include without limitation", and (e) the term "or" shall include "and/or".

<PAGE>

                2. Amendments. Effective as of the Effective Date, Section 27 of
the Master Repurchase Agreement is modified by deleting the section in its
entirety and replacing it with the following:

                27. TERMINATION

                        This Agreement shall remain in effect until the earlier
                of (i) July 8, 2005 or (ii) at Buyer's option upon the
                occurrence of an Event of Default (such date, the "Termination
                Date"). However, no such termination shall affect Seller's
                outstanding obligations to Buyer at the time-of such
                termination. Seller's obligations to indemnify Buyer pursuant to
                this Agreement shall survive the termination hereof.

                3. No Other Changes. Except as expressly modified or amended in
this Amendment Number Two, all of the terms, covenants, provisions, agreements
and conditions of the Master Repurchase Agreement are hereby ratified and
confirmed in every respect and shall remain unmodified and unchanged and shall
continue in full force and effect.

                4. Representations. In order to induce the Buyer to execute and
deliver this Amendment Number Two, the Seller hereby represents to the Buyer
that as of the date hereof, after giving effect to this Amendment Number Two,
the Seller is in full compliance with all of the terms and conditions of the
Master Repurchase Agreement and no default or Event of Default has occurred and
is continuing under the Master Repurchase Agreement.

                5. Counterparts. This Amendment Number Two may be executed in
any number of counterparts and by the parties hereto in separate counterparts,
each of which when so executed and delivered shall be deemed to be an original
and all of which taken together shall constitute one and the same instrument.

                6. Governing Law; Waiver of Jury Trial. This Amendment Number
Two shall be governed by, and construed in accordance with, the laws of the
State of New York, and the obligations, rights and remedies of the parties
hereunder shall be determined in accordance with such laws without regard to
conflicts of laws principles. The parties hereto each hereby waive the right of
trial by jury in any litigation arising hereunder.

                7. Miscellaneous. It is expressly understood and agreed by the
parties hereto that (a) this Amendment is executed and delivered by Christiana
Bank & Trust Company, not individually or personally, but solely as trustee of
the Seller, in the exercise of the powers and authority conferred and vested in
it, (b) each of the representations, undertakings and agreements herein made on
the part of the Seller is made and intended not as a personal representation,
undertaking and agreement by Christiana Bank & Trust Company but is made and
intended for the purpose for binding only the Seller, (c) nothing herein
contained shall be construed as creating any liability on the Christiana Bank &
Trust Company, individually or personally, to perform any covenant either
expressed or implied contained herein, all such liability, if any, being
expressly waived by the parties hereto and by any Person claiming by, through or
under the parties hereto and (d) under no circumstances shall the Christiana
Bank & Trust Company be

<PAGE>

personally liable for the payment of any indebtedness or expenses of the Seller
or be liable for the breach or failure of any obligation, representation,
warranty or covenant made or undertaken by the Seller under this Amendment or
any other related documents.

                         [NO FURTHER TEXT ON THIS PAGE]

<PAGE>

                IN WITNESS WHEREOF, the parties hereto have caused their duly
authorized officers to execute this Amendment Number Two to Master Repurchase
Agreement as of the date first above written.

                                        NEW CENTURY FUNDING A

                                        By: Christiana Bank & Trust Company, not
                                            in its individual capacity but
                                            solely as owner trustee

                                        By: /s/ James M. Young
                                            ------------------------------------
                                            Name: James M. Young
                                            Title: Assistant Vice President

                                        BANK OF AMERICA, N.A.

                                        By: /s/ Christopher G. Young
                                            ------------------------------------
                                            Name: Christopher G. Young
                                            Title: Vice President

Acknowledged and Agreed:

NEW CENTURY MORTGAGE CORPORATION,
as Guarantor

By: /s/ Kevin Cloyd
    ------------------------------------
Name: Kevin Cloyd
Title: Executive Vice President

NEW CENTURY FINANCIAL CORPORATION,
as Guarantor

By: /s/ Kevin Cloyd
    ------------------------------------
Name: Kevin Cloyd
Title: Executive Vice President

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