Document:

exv4w3

 

Exhibit 4.3

Second Amendment to Rights Agreement

     This SECOND AMENDMENT dated as of February 28, 2007, to the Rights Agreement, dated as of June
15, 1998 (the “Agreement”), by and between Hyperion Solutions Corporation (the “Company”) and
COMPUTERSHARE TRUST COMPANY, N.A. (f/k/a EquiServe Trust Company, N.A., f/k/a BankBoston, N.A.), as
Rights Agent (the “Rights Agent”).

     WHEREAS, the Company intends to enter into an Agreement and Plan of Merger (the “Merger
Agreement”) with Oracle  Corporation, a Delaware corporation (“Oracle”), and Hotrod
Acquisition Corporation, a Delaware corporation and a wholly-owned subsidiary of Oracle (“Merger
Subsidiary”);

     WHEREAS, the Board of Directors of the Company has determined that, in connection with the
Merger Agreement, an amendment to the Agreement as set forth herein is necessary and desirable;

     WHEREAS, pursuant to the Merger Agreement, the Company intends to grant Merger Subsidiary a
limited option to purchase (the “Purchaser Option”) certain newly-issued shares of common stock,
par value $0.001, of the Company (the “Common Shares”);

     WHEREAS, the Company has been advised that, concurrently with the Company entering into the
Merger Agreement, Oracle and Merger Subsidiary intend to enter into a Tender and Support Agreement
with certain stockholders of the Company (the “Tender and Support Agreement”), pursuant to which
each stockholder has agreed, among other things, to tender his or her shares into the tender offer
described in the Merger Agreement and to vote such stockholder’s shares in favor of the Merger
Agreement and the transactions contemplated thereby; and

     WHEREAS, pursuant to Section 27 of the Agreement, the Company may from time to time in its
sole and absolute discretion supplement or amend the Agreement, and direct the Rights Agent to
effect such supplement or amendment, in accordance with the provisions of Section 27 thereof;

     NOW, THEREFORE, pursuant to the terms of the Agreement and in accordance with Section 27
thereof, the following actions are hereby taken prior to executing the Merger Agreement:

          Section 1. Amendments to Agreement. The Agreement is hereby amended as follows:

               (a) The definition of “Acquiring Person” in Section 1 of the Agreement is amended to add the
following clause at the end the last sentence thereof:

 

 

“; and (3) neither Oracle, Merger Subsidiary nor any of their respective,
existing or future Affiliates or Associates shall be deemed to be an
Acquiring Person, either individually or collectively, solely by virtue of
(i) the public announcement of the Offer or the Merger, (ii) the
acquisition of shares of Common Shares (including any options, warrants or
other securities or rights to acquire shares of Common Shares and upon the
conversion of shares of common stock of Merger Subsidiary into Common
Shares of the Company in the Merger) of the Company pursuant to the Offer,
Merger, Purchaser Option or the Tender and Support Agreement, (iii) the
approval or execution of the Merger Agreement or the Tender and Support
Agreement or (iv) the commencement or consummation of the Offer or the
Merger or of the other transactions contemplated in the Merger Agreement,
the Tender and Support Agreement or any other agreement, instrument or
document contemplated by the Merger Agreement or the Tender and Support
Agreement (each of the events described in clauses (i), (ii), (iii) or
(iv), an “Exempt Event”).”

               (b) The definition of “Beneficial Owner” and “beneficially owned” in Section 1 of the
Agreement is amended to delete the last sentence in its entirety and replace it with the following:

“Notwithstanding anything in this definition of Beneficial Ownership to
the contrary, (A) the phrase “then outstanding,” when used with reference
to a Person’s Beneficial Ownership of securities of the Company, shall
mean the number of such securities then issued and outstanding together
with the number of such securities not then actually issued and
outstanding which such Person would be deemed to own beneficially
hereunder and (B) for purposes of this Agreement, neither Oracle, nor any
of its Affiliates or Associates shall be deemed the “Beneficial Owner” of,
or shall be deemed to “beneficially own,” any of the shares of Common
Shares solely as a result of any Exempt Event.”

               (c) The definition of “Final Expiration Date” in Section 1 of the Agreement is amended to read
in its entirety as follows:

“Final Expiration Date” shall mean the earlier to occur of (1) the
Effective Time, as that term is defined in the Merger Agreement, or (2)
July 3, 2008.”

               (d) The following definitions shall be added after the definition of “Notes” in Section 1 of
the Agreement:

“Offer” shall mean the cash tender offer by Merger Subsidiary (as it may
be amended from time to time as permitted by the Merger

2

 

Agreement) to acquire all shares of the issued and outstanding Common
Shares (together with any associated Rights) and for the Offer Price, as
that term is defined in the Merger Agreement, subject to the terms and
conditions of the Merger Agreement.

“Oracle” shall mean Oracle  Corporation, a Delaware corporation.

               (e) The following definition shall be added after the definition of “Exchange Ratio” in
Section 1 of the Agreement:

“Exempt Event” shall have the meaning set forth in the definition of
“Acquiring Person” set forth in this Section 1.

               (f) The following definitions shall be added after the definition of “Grandfathered
Stockholder” in Section 1 of the Agreement:

“Merger” shall mean the merger of Merger Subsidiary with and into the
Company as provided in the Merger Agreement.

“Merger Agreement” shall mean the Agreement and Plan of Merger entered
into by and among the Company, Oracle and Merger Subsidiary as the same
may be amended from time to time.

“Merger Subsidiary” shall mean Hotrod Acquisition Corporation, a Delaware
corporation and a wholly-owned subsidiary of Oracle, formed by Oracle in
connection with its proposed acquisition of the Company.

               (g) The following definition shall be added after the definition of “Preferred Shares” in
Section 1 of the Agreement:

“Purchaser Option” shall mean the limited option to purchase certain
newly-issued shares of Common Shares pursuant to the Merger Agreement.

               (h) The following definition shall be added after the definition of “Summary of Rights” in
Section 1 of the Agreement:

“Tender and Support Agreement” shall mean that certain Tender and Support
Agreement, as the same may be amended from time to time, entered into by
Oracle and Merger Subsidiary, on the one hand, and certain stockholders of
the Company, on the other hand.

               (i) Section 3(a) of the Agreement is amended to add the following sentence at the end thereof:

3

 

“Notwithstanding anything in this Agreement to the contrary, neither a
Shares Acquisition Date nor a Distribution Date shall be deemed to have
occurred solely as the result of an Exempt Event.”

               (j) Section 7(a) of the Agreement is amended by adding the following sentence at the end
thereof:

“Notwithstanding anything to the contrary in this Agreement, no Exempt
Event shall be deemed to be an event that causes the Rights to become
exercisable under the provisions of this Section 7 or otherwise.”

               (k) Section 11(a)(ii) of the Agreement is amended by adding the following sentence at the end
thereof:

“In addition, notwithstanding anything to the contrary in this Agreement,
no Exempt Event shall be deemed to constitute an event of the type
described in this Section 11(a)(ii) or cause the Rights to be adjusted or
become exercisable in accordance with this Section 11.”

               (l) Section 13 of the Agreement is amended by adding the following sentence at the end
thereof:

“Notwithstanding anything to the contrary in this Agreement no Exempt
Event shall be deemed to be an event of the type described in this Section
13 or cause the Rights to be adjusted or to become exercisable in
accordance with this Section 13 or otherwise be subject to any
restrictions contained in this Section 13.”

               (m) Section 30 of the Agreement is amended by adding the following sentence at the end
thereof:

“Notwithstanding the foregoing, nothing in this Agreement shall be
construed to give any registered holder of the Right Certificates (and
prior to any Distribution Date, the Common Shares) any legal or equitable
rights, remedy or claim under this Agreement in connection with any Exempt
Event.”

          Section 2. Effectiveness; Termination of the Merger Agreement. This Amendment shall
be effective as of the date first written above, and except as expressly set forth herein, the
Agreement shall remain in full force and effect in accordance with the provisions thereof on the
date hereof. If for any reason the Merger Agreement is terminated, then this Amendment shall be of
no further force and effect and the Agreement shall remain as it existed immediately prior to the
effectiveness of this Amendment.

4

 

          Section 3. Governing Law. This Amendment shall be governed by and construed in
accordance with the law of the State of Delaware applicable to contracts to be made and performed
entirely within such State.

          Section 4. Agreement as Amended. The term “Agreement” as used in the Agreement shall
be deemed to refer to the Agreement as amended hereby, and all references to the Agreement shall be
deemed to include this Amendment.

          Section 5. Counterparts. This Amendment may be signed in one or more counterparts,
all of which shall be considered one and the same instrument.

[Remainder of page intentionally left blank]

5

 

     IN WITNESS WHEREOF, the Company and the Rights Agents have caused this Amendment to be duly
executed as of the day and year first above written.

	 	 	 	 	 
	 	 	HYPERION SOLUTIONS CORPORATION
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Godfrey R. Sullivan
	 

	 	 	 	 
	 

	 	Name:
	 	Godfrey R. Sullivan
	 

	 	 	 	 
	 

	 	Title:
	 	President and Chief Executive Officer
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	COMPUTERSHARE TRUST COMPANY, N.A.
	 	 	as Rights Agent
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Dennis Moccia
	 

	 	 	 	 
	 

	 	Name:
	 	Dennis Moccia
	 

	 	 	 	 
	 

	 	Title:
	 	Managing Directorexv10w04

 

EXHIBIT
10.04

SILICON IMAGE, INC.

1999 EMPLOYEE STOCK PURCHASE PLAN

As Amended and Restated on December 13, 2006

     1. Establishment of Plan. Silicon Image, Inc. (the “Company”) proposes to grant options for
purchase of the Company’s Common Stock to eligible employees of the Company and its Participating
Subsidiaries (as hereinafter defined) pursuant to this Employee Stock Purchase Plan (this “Plan”).
For purposes of this Plan, “Parent Corporation” and “Subsidiary” shall have the same meanings as
“parent corporation” and “subsidiary corporation” in Sections 424(e) and 424(f), respectively, of
the Internal Revenue Code of 1986, as amended (the “Code”). “Participating Subsidiaries” are
Parent Corporations or Subsidiaries that the Board of Directors of the Company (the “Board”)
designates from time to time as corporations that shall participate in this Plan. The Company
intends this Plan to qualify as an “employee stock purchase plan” under Section 423 of the Code
(including any amendments to or replacements of such Section (“Section 423”)), and this Plan shall
be so construed. Any term not expressly defined in this Plan but defined for purposes of Section
423 shall have the same definition herein. A total of 500,000 shares of the Company’s Common Stock
is initially reserved for issuance under this Plan (after giving effect to the 2:1 stock split of
August 18, 2000). In addition, on each January 1, the aggregate number of shares of the Company’s
Common Stock reserved for issuance under the Plan shall be increased automatically by a number of
shares equal to 1% of the total number of outstanding shares of the Company Common Stock on the
immediately preceding December 31; provided, that the Board or the Committee may in its
sole discretion reduce the amount of the increase in any particular year; and, provided
further, that the aggregate number of shares issued over the term of this Plan shall not exceed
8,000,000 shares (after giving effect to the 2:1 stock split of August 18, 2000). Such number
shall be subject to adjustments effected in accordance with Section 14 of this Plan.

     2. Purpose. The purpose of this Plan is to provide eligible employees of the Company and
Participating Subsidiaries with a convenient means of acquiring an equity interest in the Company
through payroll deductions, to enhance such employees’ sense of participation in the affairs of the
Company and Participating Subsidiaries, and to provide an incentive for continued employment.

     3. Administration. This Plan shall be administered by the Compensation Committee of the
Board (the “Committee”). Subject to the provisions of this Plan and the limitations of Section 423
or any successor provision in the Code, all questions of interpretation or application of this Plan
shall be determined by the Committee and its decisions shall be final and binding upon all
participants. Members of the Committee shall receive no compensation for their services in
connection with the administration of this Plan, other than standard fees as established from time
to time by the Board for services rendered by Board members serving on Board committees. All
expenses incurred in connection with the administration of this Plan shall be paid by the Company.

     4. Eligibility. Any employee of the Company or the Participating Subsidiaries is eligible to
participate in an Offering Period (as hereinafter defined) under this Plan except the following:

          (a) employees who are not employed by the Company or a Participating Subsidiary (10) days
before the beginning of such Offering Period;

          (b) employees who are customarily employed for twenty (20) hours or less per week;

          (c) employees who are customarily employed for five (5) months or less in a calendar year;

          (d) employees who, together with any other person whose stock would be attributed to such
employee pursuant to Section 424(d) of the Code, own stock or hold options to purchase stock
possessing five percent (5%) or more of the total combined voting power or value of all classes of
stock of the Company or any of its Participating Subsidiaries or who, as a result of being granted
an option under this Plan with respect to such Offering Period, would own stock or hold options to
purchase stock possessing five percent (5%) or more of the total combined voting power or value of
all classes of stock of the Company or any of its Participating Subsidiaries; and

 

 

Silicon Image, Inc.

1999 Employee Stock Purchase Plan

          (e) individuals who provide services to the Company or any of its Participating Subsidiaries
as independent contractors who are reclassified as common law employees for any reason
except for federal income and employment tax purposes.

     5. Offering Dates. The offering periods of this Plan (each, an “Offering Period”) shall be
of approximately six (6) months duration. The first such Offering Period shall commence on
February 1, 2007, and end on the last business day to occur on or before July 31, 2007, and
subsequent Offering Periods shall commence on each August 1 and February 1 thereafter. Each
Offering Period that commences on, or after, February 1, 2007, shall consist of a single purchase
period (a “Purchase Period”) during which payroll deductions of the participants are accumulated
under this Plan. The first business day of each Offering Period is referred to as the “Offering
Date”. The last business day of each Offering Period is referred to as the “Purchase Date” (with
January 31, 2007 to be the final Purchase Date for all Offering Periods then in effect) and is the
end of the Purchase Period. The Committee shall have the power to change the duration of Offering
Periods with respect to offerings without stockholder approval if such change is announced at least
fifteen (15) days prior to the scheduled beginning of the first Offering Period to be affected.

     6. Participation in this Plan. Eligible employees may become participants in an Offering
Period under this Plan on the first Offering Date after satisfying the eligibility requirements by
delivering a subscription agreement to the Company not later than five (5) days before such
Offering Date. Notwithstanding the foregoing, the Committee may set a later time for filing the
subscription agreement authorizing payroll deductions for all eligible employees with respect to a
given Offering Period. An eligible employee who does not deliver a subscription agreement to the
Company by such date after becoming eligible to participate in such Offering Period shall not
participate in that Offering Period or any subsequent Offering Period unless such employee enrolls
in this Plan by filing a subscription agreement with the Company not later than five (5) days
preceding a subsequent Offering Date. Once an employee becomes a participant in an Offering
Period, such employee will automatically participate in the Offering Period commencing immediately
following the last day of the prior Offering Period and is not required to file another
subscription agreement to continue participation in this Plan other than following a withdrawal
from participation as set forth in Section 11 below.

     7. Grant of Option on Enrollment. Enrollment by an eligible employee in this Plan with
respect to an Offering Period will constitute the grant (as of the Offering Date) by the Company to
such employee of an option to purchase on the Purchase Date up to that number of shares of Common
Stock of the Company determined by dividing (a) the amount accumulated in such employee’s payroll
deduction account during such Offering Period by (b) the lower of (i) eighty-five percent (85%) of
the fair market value of a share of the Company’s Common Stock on the Offering Date (but in no
event less than the par value of a share of the Company’s Common Stock), or (ii) eighty-five
percent (85%) of the fair market value of a share of the Company’s Common Stock on the Purchase
Date (but in no event less than the par value of a share of the Company’s Common Stock), provided,
however, that the number of shares of the Company’s Common Stock subject to any option granted
pursuant to this Plan shall not exceed the lesser of (x) the maximum number of shares set by the
Committee pursuant to Section 10(c) below with respect to the applicable Purchase Date, or (y) the
maximum number of shares which may be purchased pursuant to Section 10(b) below with respect to the
applicable Purchase Date. The fair market value of a share of the Company’s Common Stock shall be
determined as provided in Section 8 below.

     8. Purchase Price. The purchase price per share at which a share of Common Stock will be
sold in any Offering Period shall be eighty-five percent (85%) of the lesser of:

          (a) The fair market value on the Offering Date; or

          (b) The fair market value on the Purchase Date.

          For purposes of this Plan, the term “Fair Market Value” means, as of any date, the value of a
share of the Company’s Common Stock determined as follows:

	 	(a)	 	if such Common Stock is publicly traded and is then listed on a
national securities exchange, its closing price on the date of determination on
the principal national securities

2

 

Silicon Image, Inc.

1999 Employee Stock Purchase Plan

	 	 	 	exchange on which the Common Stock is listed or admitted to trading as
reported by The Wall Street Journal or other source designated by the
Board or Committee;
	 
	 	(b)	 	if such Common Stock is publicly traded but is not listed or
admitted to trading on a national securities exchange, the average of the closing
bid and asked prices on the date of determination as reported in The Wall
Street Journal or other source designated by the Board or Committee; or
	 
	 	(c)	 	if none of the foregoing is applicable, by the Board or Committee
in good faith.

     9. Payment Of Purchase Price; Changes In Payroll Deductions; Issuance Of Shares.

          (a) The purchase price of the shares is accumulated by regular payroll deductions made during
each Offering Period. The deductions are made as a percentage of the participant’s compensation in
one percent (1%) increments not less than one percent (1%), nor greater than fifteen percent (15%)
or such lower limit set by the Committee. Compensation shall mean all W-2 cash compensation,
including, but not limited to, base salary, wages, commissions, overtime, shift premiums and
bonuses, plus draws against commissions, provided, however, that for purposes of
determining a participant’s compensation, any election by such participant to reduce his or her
regular cash remuneration under Sections 125 or 401(k) of the Code shall be treated as if the
participant did not make such election. Payroll deductions shall commence on the first payday of
the Offering Period and shall continue to the end of the Offering Period unless sooner altered or
terminated as provided in this Plan.

          (b) A participant may prospectively increase or decrease the rate of payroll deductions for
any upcoming Offering Period by filing with the Company a new authorization for payroll deductions
not later than fifteen (15) days before the beginning of such Offering Period.

          (c) A participant may decrease, but not increase, his or her payroll deduction percentage
(including to zero) during a Purchase Period by filing with the Company a new authorization
regarding upcoming payroll deductions. Such decrease shall be effective beginning with the next
payroll period commencing more than fifteen (15) days after the Company’s receipt of the request.
Only one such change may be made effective during any Purchase Period.

          (d) All payroll deductions made for a participant are credited to his or her account under
this Plan and are deposited with the general funds of the Company. No interest accrues on the
payroll deductions. All payroll deductions received or held by the Company may be used by the
Company for any corporate purpose, and the Company shall not be obligated to segregate such payroll
deductions.

          (e) On each Purchase Date, so long as this Plan remains in effect, and provided that the
participant has not timely submitted a signed and completed withdrawal form before that date as
provided in Section 11 below, the Company shall apply the funds then in the participant’s account
to the purchase of whole shares of Common Stock reserved under the option granted to such
participant with respect to the Offering Period to the extent that such option is exercisable on
the Purchase Date. The purchase price per share shall be as specified in Section 8 of this Plan.
Any cash remaining in a participant’s account after such purchase of shares shall be refunded to
such participant in cash, without interest; provided, however that any amount remaining in such
participant’s account on a Purchase Date which is less than the amount necessary to purchase a full
share of Common Stock of the Company shall be carried forward, without interest, into the next
Offering Period. In the event that this Plan has been oversubscribed, all funds not used to
purchase shares on the Purchase Date shall be returned to the participant, without interest. No
Common Stock shall be purchased on a Purchase Date on behalf of any employee whose participation in
this Plan has terminated prior to such Purchase Date.

          (f) As promptly as practicable after the Purchase Date, the Company shall issue shares for
the participant’s benefit representing the shares purchased upon exercise of his or her option.

          (g) A participant’s option to purchase shares hereunder is exercisable only by him or her.
The participant will have no interest or voting right in shares covered by his or her option until
such option has been exercised.

3

 

Silicon Image, Inc.

1999 Employee Stock Purchase Plan

     10. Limitations on Shares to be Purchased.

          (a) No participant shall be entitled to purchase stock under this Plan at a rate which, when
aggregated with his or her rights to purchase stock under all other employee stock purchase plans
of the Company or any Subsidiary, exceeds $25,000 in fair market value, determined as of the
Offering Date (or such other limit as may be imposed by the Code) for each calendar year in which
the employee participates in this Plan. The Company shall automatically suspend the payroll
deductions of any participant as necessary to enforce such limit provided that when the Company
automatically resumes such payroll deductions, the Company must apply the rate in effect
immediately prior to such suspension.

          (b) No more than two hundred percent (200%) of the number of shares determined by using
eighty-five percent (85%) of the fair market value of a share of the Company’s Common Stock on the
Offering Date as the denominator may be purchased by a participant on any single Purchase Date.

          (c) No participant shall be entitled to purchase more than the Maximum Share Amount (as
defined below) on any single Purchase Date. Not less than thirty (30) days prior to the
commencement of any Offering Period, the Committee may, in its sole discretion, set a maximum
number of shares which may be purchased by any employee at any single Purchase Date (hereinafter
the “Maximum Share Amount”). Until otherwise determined by the Committee, there shall be no
Maximum Share Amount. In no event shall the Maximum Share Amount exceed the amounts permitted
under Section 10(b) above. If a new Maximum Share Amount is set, then all participants must be
notified of such Maximum Share Amount prior to the commencement of the next Offering Period. The
Maximum Share Amount shall continue to apply with respect to all succeeding Purchase Dates and
Offering Periods unless revised by the Committee as set forth above.

          (d) If the number of shares to be purchased on a Purchase Date by all employees participating
in this Plan exceeds the number of shares then available for issuance under this Plan, then the
Company will make a pro rata allocation of the remaining shares in as uniform a manner as shall be
reasonably practicable and as the Committee shall determine to be equitable. In such event, the
Company shall give written notice of such reduction of the number of shares to be purchased under a
participant’s option to each participant affected.

          (e) Any payroll deductions accumulated in a participant’s account which are not used to
purchase stock due to the limitations in this Section 10 shall be returned to the participant as
soon as practicable after the end of the applicable Offering Period, without interest.

     11. Withdrawal.

          (a) Each participant may withdraw from an Offering Period under this Plan by signing and
delivering to the Company a written notice to that effect on a form provided for such purpose.
Such withdrawal may be elected at any time at least fifteen (15) days prior to the end of an
Offering Period.

          (b) Upon withdrawal from this Plan, the accumulated payroll deductions shall be returned to
the withdrawn participant, without interest, and his or her interest in this Plan shall terminate.
In the event a participant voluntarily elects to withdraw from this Plan, he or she may not resume
his or her participation in this Plan during the same Offering Period, but he or she may
participate in any Offering Period under this Plan which commences on a date subsequent to such
withdrawal by filing a new authorization for payroll deductions in the same manner as set forth in
Section 6 above for initial participation in this Plan.

     12. Termination of Employment. Termination of a participant’s employment for any reason,
including retirement, death or the failure of a participant to remain an eligible employee of the
Company or of a Participating Subsidiary, immediately terminates his or her participation in this
Plan. In such event, the payroll deductions credited to the participant’s account will be returned
to him or her or, in the case of his or her death, to his or her legal representative, without
interest. For purposes of this Section 12, an employee will not be deemed to have terminated
employment or failed to remain in the continuous employ of the Company or of a Participating
Subsidiary in the case of sick leave, military leave, or any other leave of absence approved by the
Board; provided that such

4

 

Silicon Image, Inc.

1999 Employee Stock Purchase Plan

leave is for a period of not more than ninety (90) days or reemployment upon the
expiration of such leave is guaranteed by contract or statute.

     13. Return of Payroll Deductions. In the event a participant’s interest in this Plan is
terminated by withdrawal, termination of employment or otherwise, or in the event this Plan is
terminated by the Board, the Company shall deliver to the participant all payroll deductions
credited to such participant’s account. No interest shall accrue on the payroll deductions of a
participant in this Plan.

     14. Capital Changes. Subject to any required action by the stockholders of the Company, the
number of shares of Common Stock covered by each option under this Plan which has not yet been
exercised and the number of shares of Common Stock which have been authorized for issuance under
this Plan but have not yet been placed under option (collectively, the “Reserves”), as well as the
price per share of Common Stock covered by each option under this Plan which has not yet been
exercised, shall be proportionately adjusted for any increase or decrease in the number of issued
and outstanding shares of Common Stock of the Company resulting from a stock split or the payment
of a stock dividend (but only on the Common Stock) or any other increase or decrease in the number
of issued and outstanding shares of Common Stock effected without receipt of any 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 Committee, whose determination shall be final, binding and conclusive. Except as
expressly provided herein, no issue 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 subject to an option.

     In the event of the proposed dissolution or liquidation of the Company, the Offering Period
will terminate immediately prior to the consummation of such proposed action, unless otherwise
provided by the Committee. The Committee may, in the exercise of its sole discretion in such
instances, declare that this Plan shall terminate as of a date fixed by the Committee and give each
participant the right to purchase shares under this Plan prior to such termination or return each
participant’s funds on deposit without interest. In the event of (i) a merger or consolidation in
which the Company is not the surviving corporation (other than a merger or consolidation with a
wholly-owned subsidiary, a reincorporation of the Company in a different jurisdiction, or other
transaction in which there is no substantial change in the stockholders of the Company or their
relative stock holdings and the options under this Plan are assumed, converted or replaced by the
successor corporation, which assumption will be binding on all participants), (ii) a merger in
which the Company is the surviving corporation but after which the stockholders of the Company
immediately prior to such merger (other than any stockholder that merges, or which owns or controls
another corporation that merges, with the Company in such merger) cease to own their shares or
other equity interest in the Company, (iii) the sale of all or substantially all of the assets of
the Company or (iv) the acquisition, sale, or transfer of more than 50% of the outstanding shares
of the Company by tender offer or similar transaction, the Plan shall terminate as of a date fixed
by the Committee and the date of such termination shall be the final Purchase Date for all Offering
Periods then in effect.

     The Committee may, if it so determines in the exercise of its sole discretion, also make
provision for adjusting the Reserves, as well as the price per share of Common Stock covered by
each outstanding option, in the event that the Company effects one or more reorganizations,
recapitalizations, rights offerings or other increases or reductions of shares of its outstanding
Common Stock, or in the event of the Company being consolidated with or merged into any other
corporation.

     15. Nonassignability. Neither payroll deductions credited to a participant’s account nor any
rights with regard to the exercise of an option or to receive shares under this Plan may be
assigned, transferred, pledged or otherwise disposed of in any way (other than by will, the laws of
descent and distribution or as provided in Section 22 below) by the participant. Any such attempt
at assignment, transfer, pledge or other disposition shall be void and without effect.

     16. Reports. Individual accounts will be maintained for each participant in this Plan. Each
participant shall receive promptly after the end of each Offering Period a report of his or her
account setting forth the total payroll deductions accumulated, the number of shares purchased, the
per share price thereof and the remaining cash balance, if any, carried forward to the next
Offering Period.

5

 

Silicon Image, Inc.

1999 Employee Stock Purchase Plan

     17. Notice of Disposition. Each participant shall notify the Company in writing if the
participant disposes of any of the shares purchased in any Offering Period pursuant to this Plan if
such disposition occurs within two (2) years from the Offering Date (the “Notice Period”). The
Company may, at any time during the Notice Period, place a legend or legends on any certificate
representing shares acquired pursuant to this Plan requesting the Company’s transfer agent to
notify the Company of any transfer of the shares. The obligation of the participant to provide
such notice shall continue notwithstanding the placement of any such legend on the certificates.

     18. No Rights to Continued Employment. Neither this Plan nor the grant of any option
hereunder shall confer any right on any employee to remain in the employ of the Company or any
Participating Subsidiary, or restrict the right of the Company or any Participating Subsidiary to
terminate such employee’s employment.

     19. Equal Rights And Privileges. All eligible employees shall have equal rights and
privileges with respect to this Plan so that this Plan qualifies as an “employee stock purchase
plan” within the meaning of Section 423 or any successor provision of the Code and the related
regulations. Any provision of this Plan which is inconsistent with Section 423 or any successor
provision of the Code shall, without further act or amendment by the Company, the Committee or the
Board, be reformed to comply with the requirements of Section 423. This Section 19 shall take
precedence over all other provisions in this Plan.

     20. Notices. All notices or other communications by a participant to the Company under or in
connection with this Plan shall be deemed to have been duly given when received in the form
specified by the Company at the location, or by the person, designated by the Company for the
receipt thereof.

     21. Term; Stockholder Approval. This Plan was first adopted by the Board on July 20, 1999
and was last amended by the Board as of the date shown above. When required by applicable law or
Section 423, this Plan shall be submitted for approval by the stockholders of the Company, in any
manner required, or permitted, by applicable law. No purchase of shares that are subject to such
approval before becoming available under this Plan shall occur prior to stockholder approval of
such shares and the Board or Committee may delay any Purchase Date and postpone the commencement of
any Offering Period subsequent to such Purchase Date as deemed necessary or desirable to obtain
such approval (provided that if a Purchase Date would occur more than twenty-seven (27) months
after commencement of the Offering Period to which it relates, then such Purchase Date shall not
occur and instead such Offering Period shall terminate without the purchase of shares and
participants in such Offering Period shall be refunded their contributions without interest). This
Plan shall continue until the earlier to occur of (a) termination of this Plan by the Board (which
termination may be effected by the Board at any time), (b) issuance of all of the shares of Common
Stock reserved for issuance under this Plan, or (c) ten (10) years from the adoption of this Plan
by the Board.

     22. Designation of Beneficiary.

          (a) A participant may file a written designation of a beneficiary who is to receive any
shares and cash, if any, from the participant’s account under this Plan in the event of such
participant’s death subsequent to the end of a Purchase Period but prior to delivery to him of such
shares and cash. In addition, a participant may file a written designation of a beneficiary who is
to receive any cash from the participant’s account under this Plan in the event of such
participant’s death prior to a Purchase Date.

          (b) Such designation of beneficiary may be changed by the participant at any time by written
notice. In the event of the death of a participant and in the absence of a beneficiary validly
designated under this Plan who is living at the time of such participant’s death, the Company shall
deliver such shares or cash to the executor or administrator of the estate of the participant, or
if no such executor or administrator has been appointed (to the knowledge of the Company), the
Company, in its discretion, may deliver such shares or cash to the spouse or to any one or more
dependents or relatives of the participant, or if no spouse, dependent or relative is known to the
Company, then to such other person as the Company may designate.

     23. Conditions Upon Issuance of Shares; Limitation on Sale of Shares. Shares shall not be
issued with respect to an option unless the exercise of such option and the issuance and delivery
of such shares pursuant thereto shall comply with all applicable provisions of law, domestic or
foreign, including, without limitation, the Securities Act of 1933, as amended, the Securities
Exchange Act of 1934, as amended, the rules and regulations promulgated

6

 

Silicon Image, Inc.

1999 Employee Stock Purchase Plan

thereunder, and the requirements of any stock exchange or automated quotation system upon which the
shares may then be listed, and shall be further subject to the approval of counsel for the Company
with respect to such compliance.

     24. Applicable Law. The Plan shall be governed by the substantive laws (excluding the
conflict of laws rules) of the State of California.

     25. Amendment or Termination of this Plan. The Board may at any time amend, terminate or
extend the term of this Plan, except that any such termination cannot affect options previously
granted under this Plan, nor may any amendment make any change in an option previously granted
which would adversely affect the right of any participant, nor may any amendment be made without
approval of the stockholders of the Company obtained in accordance with Section 21 above within
twelve (12) months of the adoption of such amendment (or earlier if required by Section 21) if such
amendment would:

          (a) increase the number of shares that may be issued under this Plan; or

          (b) change the designation of the employees (or class of employees) eligible for participation
in this Plan.

          Notwithstanding the foregoing, the Board may make such amendments to the Plan as the Board
determines to be advisable, if the continuation of the Plan or any Offering Period would result in
financial accounting treatment for the Plan that is different from the financial accounting
treatment in effect on the date this Plan was adopted by the Board.

7

 

THE SILICON IMAGE, INC.

1999 EMPLOYEE STOCK PURCHASE PLAN

SUB-PLAN FOR UK EMPLOYEES

	1.	 	The purpose of this Sub-Plan is to provide incentive for present and future employees in the
United Kingdom of Silicon Image’s Subsidiaries through the grant of options over Common Stock.
	 
	2.	 	This Sub-Plan is governed by the Silicon Image, Inc. 1999 Employee Stock Purchase Plan (the
“Plan”) and all its provisions shall be identical to those of the Plan SAVE THAT Section 4
shall be as stated in this Sub-Plan in order to accommodate the specific requirements of UK
law.

Section 4 for purposes of this Sub-Plan reads:

     4. Eligibility. Any employee of the Participating Subsidiaries is eligible to participate in
an Offering Period (as hereinafter defined) under this Plan except the following:

          (a) employees who are not employed by the Company or a Participating Subsidiary (10) days
before the beginning of such Offering Period;

          (b) employees who are customarily employed for five (5) months or less in a calendar year;

          (c) employees who, together with any other person whose stock would be attributed to such
employee pursuant to Section 424(d) of the Code, own stock or hold options to purchase stock
possessing five percent (5%) or more of the total combined voting power or value of all classes of
stock of the Company or any of its Participating Subsidiaries or who, as a result of being granted
an option under this Plan with respect to such Offering Period, would own stock or hold options to
purchase stock possessing five percent (5%) or more of the total combined voting power or value of
all classes of stock of the Company or any of its Participating Subsidiaries; and

          (d) individuals who provide services to the Company or any of its Participating Subsidiaries
as independent contractors who are reclassified as common law employees for any reason except
for federal income and employment tax purposes.

 

 

SILICON IMAGE, INC. 1999 EMPLOYEE STOCK PURCHASE PLAN

ENROLLMENT FORM

	 	 	 	 	 
	Check One:	 	Complete:
	 
	 	 	 	 
	 

	 	o New Enrollment or Re-enrollment
	 	Social Security No.                                                             
	 
	 	 	 	 
	 

	 	o Change
	 	Employee No.                                                             

o Change in How Shares Are to Be Held in Account

o Increase in Payroll Deduction Level  onext Offering Period

o Decrease in Payroll Deduction Level othis Purchase Period onext Offering Period

o Suspension of Payroll Deductions for Open Offering Period (Attach Completed Suspension Form)

o Withdrawal (Attach Completed Withdrawal Form)

o Beneficiary Change

	 	 	 	 	 
	1.

	 	Name of Participant	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	2.	 	Shares purchased under the Plan should be held in account with the Plan Broker in my name or

in my name together with the name(s) indicated below:

	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Name
	 	 	 	Social Security No.
	 	 	 	 
	 

	 	 	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	Name
	 	 	 	Social Security No.	 	 	 	 
	 

	 	 	 	 
	 	 	 	 	 	 

There may be tax consequences for naming individuals other than your spouse on the account in
which Shares purchased under the Plan are held. If spouse (circle one): Joint Tenants/Community
Property.

Please notify the Plan Broker directly to transfer or sell your stock.

	3.	 	Payroll Deduction Level (from 1% to 15% in whole percentages):___

(the percentage deduction will be made from your W-2 compensation including base salary,
commissions, overtime, shift premiums, bonuses and draws against commissions)
	 
	4.	 	I confirm my spouse’s interest (if married) in the
community property herein (if in a community property state), and I hereby
designate the following person(s) as my beneficiary(ies) to receive all payments and/or stock
attributable to my interest under the Plan:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	*To be divided	 	 	 	 	 	 
	NAME	 	 	 	as follows:	 	ADDRESS	 	 	 	 
	 	 	 	 	 
	Last

	 	First
	 	M.I.
	 	 	 	Number
	 	Street	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	Social Security No.	 	Relationship	 	 	 	City	 	State	 	Zip
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	Last

	 	First
	 	M.I.
	 	 	 	Number
	 	Street	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	Social Security No.	 	Relationship	 	 	 	City	 	State	 	Zip

 

			
	*	 	If more than one beneficiary: (1) insert “in equal shares”, or (2) insert percentage
to be paid to each beneficiary.

 

 

	5.	 	The information provided on this Enrollment Form will remain in effect unless and until I
complete and submit to Silicon Image, Inc. a new enrollment form.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	SILICON IMAGE, INC. OFFICE USE:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Signature:

	 	 	 	Date received by the
	 	 	 	:	 	 
	 

	 	 
	 	 	 	 
	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Name:

	 	 	 	Date entered into system:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Date:	 	 	 	Please return this completed form to Silicon Image, Inc.	 	 

 

 

SILICON IMAGE, INC.

1999 EMPLOYEE STOCK PURCHASE PLAN

SUBSCRIPTION AGREEMENT

	1.	 	I elect to participate in the Silicon Image, Inc. (the “Company”) 1999 Employee Stock
Purchase Plan (the “Plan”) and to subscribe to purchase shares of the Company’s Common Stock
(the “Shares”) in accordance with this Subscription Agreement and the Plan.
	 
	2.	 	I authorize payroll deductions from each of my paychecks in that percentage of my base
salary, commissions, overtime, shift premiums, bonuses and draws against commissions as shown
on my Enrollment Form, in accordance with the Plan.
	 
	3.	 	I understand that such payroll deductions shall be accumulated for the purchase of Shares
under the Plan at the applicable purchase price determined in accordance with the Plan. I
further understand that except as otherwise set forth in the Plan, Shares will be purchased
for me automatically at the end of each Purchase Period unless I withdraw from the Plan or
otherwise become ineligible to participate in the Plan.
	 
	4.	 	I understand that this Subscription Agreement will automatically re-enroll me in all
subsequent Offering Periods unless I withdraw from the Plan or I become ineligible to
participate in the Plan.
	 
	5.	 	I acknowledge that I have a copy of and am familiar with the Company’s most recent Prospectus
which describes the Plan. A copy of the complete Plan and the Prospectus is on file with the
Company.
	 
	6.	 	I understand that Shares purchased for me under the Plan will be held in a personal account
with the Plan Broker unless I request otherwise and that I am obligated to notify the Company of any disqualifying disposition.
	 
	7.	 	I hereby agree to be bound by the terms of the Plan. The effectiveness of this Subscription
Agreement is dependent upon my eligibility to participate in the Plan.
	 
	8.	 	I have read and understood this Subscription Agreement.

	 	 	 	 	 
	 

	 	Signature:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Date:	 	 
	 

	 	 	 	 

Please return this completed form to the Company.

 

 

SILICON IMAGE, INC.

UK SUB-PLAN OF THE 1999

EMPLOYEE STOCK PURCHASE PLAN

ENROLLMENT FORM

	 	 	 	 	 
	Tick One:	 	Complete:
	 
	 	 	 	 
	 

	 	o New Enrollment or Re-enrollment
	 	National Insurance No.                                                             
	 
	 	 	 	 
	 

	 	o Change
	 	Employee No.                                                             

o Increase in Payroll Deduction Level  onext Offering Period

o Decrease in Payroll Deduction Level othis Purchase Period onext Offering Period

o Suspension of Payroll Deductions for Open Offering Period (Attach Completed Suspension Form)

o Withdrawal (Attach Completed Withdrawal Form)

o Beneficiary Change

	1.	 	Name of Participant                                                                                                                         
	 
	2.	 	Shares purchased under the Sub-Plan will be held in the account with the Plan Broker in your
name.
	 
	 	 	Please notify the Plan Broker directly if you wish to transfer the shares to an account other
than your individual account. NOTE that there may be tax consequences for naming individuals
other than your spouse on the account in which Shares purchased under the Sub-Plan are held.
You should consult your tax advisor regarding this issue.
	 
	 	 	Please notify the Plan Broker directly to transfer or sell your stock.
	 
	3.	 	Payroll Deduction Level (from 1% to 15% in whole percentages):___
	 	 	(the percentage deduction will be made from your post-tax remuneration including base salary,
commissions, overtime, shift premiums, bonuses and draws against commissions)
	 
	4.	 	I confirm my spouse’s interest (if married) in the property herein, and I hereby
designate the following person(s) as my beneficiary(ies) to receive all payments and/or stock
attributable to my interest under the Sub-Plan:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	*To be divided	 	 	 	 	 	 
	NAME	 	 	 	as follows:	 	ADDRESS	 	 	 	 
	 	 	 	 	 
	Last

	 	First
	 	M.I.
	 	 	 	Number
	 	Street	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	Social Security No.	 	Relationship	 	 	 	City	 	State	 	Zip
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	Last

	 	First
	 	M.I.
	 	 	 	Number
	 	Street	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	Social Security No.	 	Relationship	 	 	 	City	 	State	 	Zip

 

			
	*	 	If more than one beneficiary: (1) insert “in equal shares”, or (2) insert percentage
to be paid to each beneficiary.

 

 

	5.	 	The information provided on this Enrollment Form will remain in effect unless and until I
complete and submit to Silicon Image, Inc. a new enrollment form.

	 	 	 	 	 	 	 
	 	 	 	 	SILICON IMAGE, INC. OFFICE USE:
	 
	 	 	 	 	 	 
	Signature:

	 	 	 	Date received	 	 
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	Name:

	 	 	 	Date entered into system	 	 
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	Date:
	 	 	 	 	 	 
	 

	 	 

	 	 	 	 

Please return this completed form to Silicon Image, Inc. Human Resources — Fax (408) 830-9531.

 

 

SILICON IMAGE, INC.

UK SUB-PLAN OF THE 1999 EMPLOYEE STOCK PURCHASE PLAN

SUBSCRIPTION AGREEMENT

	1.	 	I elect to participate in the UK Sub-Plan of the Silicon Image, Inc. (the “Company”) 1999
Employee Stock Purchase Plan (the “Sub-Plan”) and to subscribe to purchase shares of the
Company’s Common Stock (the “Shares”) in accordance with this Subscription Agreement and the
Sub-Plan.

	2.	 	I authorize payroll deductions from each of my post-tax remuneration in that percentage of my
base salary, commissions, overtime, shift premiums, bonuses and draws against commissions as
shown on my Enrollment Form, in accordance with the Sub-Plan.

	3.	 	I understand that such payroll deductions shall be accumulated for the purchase of Shares
under the Sub-Plan at the applicable purchase price determined in accordance with the
Sub-Plan. I further understand that except as otherwise set forth in the Sub-Plan, Shares
will be purchased for me automatically at the end of each Purchase Period unless I withdraw
from the Sub-Plan or otherwise become ineligible to participate in the Sub-Plan.

	4.	 	I understand that this Subscription Agreement will automatically re-enroll me in all
subsequent Offering Periods unless I withdraw from the Plan or I become ineligible to
participate in the Sub-Plan.

	5.	 	I acknowledge that I have a copy of and am familiar with the Company’s most recent Prospectus
which describes the Sub-Plan. A copy of the complete Sub-Plan and the Prospectus is on file
with the Company. (In the case of the initial Plan Purchase Period, the Prospectus will be on
file on the first day of the Offering Period.)

6. Taxation Indemnity.

	 	(a)	 	I agree to indemnify and keep indemnified the Company and the Company as trustee for
and on behalf of any related corporation, in respect of any liability or obligation of the
Company and/or any related corporation to account for income tax (under PAYE) or any other
taxation provisions and primary class 1 National Insurance Contributions (“NICs”) in the
United Kingdom to the extent arising from the grant, exercise, assignment, release,
cancellation or any other disposal of my option or arising out of the acquisition,
retention and disposal of the Shares acquired pursuant to the Subscription Agreement.
	 
	 	(b)	 	The Company shall not be obliged to allot and issue any Shares or any interest in
Shares to me unless and until I have paid to the Company such sum as is, in the opinion of
the Company, sufficient to indemnify the Company in full against any liability the Company
has to account to the Inland Revenue for any amount of, or representing, income tax and/or
primary NICs (the “Tax Liability”), or I have made such other arrangement as in the opinion
of the Company will ensure that the full amount of any Tax Liability will be recovered from
me within such period as the Company may then determine.
	 
	 	(c)	 	In the absence of any such other arrangement being made, the Company shall have the
right to retain out of the aggregate number of shares to which I would be otherwise
entitled upon the exercise of my option, such number of Shares as, in the opinion of the
Company, will enable the Company to sell as agent for me (at the best price which can
reasonably expect to be obtained at the time of the sale) and to pay over to the Company
sufficient monies out of the net proceeds of sale, after deduction of all fees, commissions
and expenses incurred in relation to such sale, to satisfy my liability under such
indemnity.

	7.	 	Employer’s NICs. As a consideration of the opportunity to participate in the Sub-Plan I
agree to join with the Company or, if and to the extent that there is a change in the law, any
other company or person who is or becomes a secondary contributor for NIC purposes in respect
of this option (the “Secondary Contributor”) in
making an election (in such terms and such form as provided in paragraphs 3A and 3B of Schedule
1 to the Social Security Contributions and Benefits Act 1992) which has been approved by the
Inland Revenue (the “Joint Election”), for the transfer of the whole or any liability of the
Secondary Contributor to Employer’s Class 1 NICs to me. I realize and agree that if the Company
does not have an effective Joint Election on file for me by

 

 

	 	 	the deadline for withdrawal from the
Sub-Plan for a given Purchase Date, then the absence of such Joint Election shall be treated as
an election by me to withdraw from the Sub-Plan and on such Purchase Date no purchase shall be
made for me and any deductions/contributions shall be refunded to me.

	8.	 	I understand that Shares purchased for me under the Sub-Plan will be held in a personal
account with the Plan Broker unless I request otherwise.

9. Data Protection.

	 	(a)	 	In order to facilitate the administration of the Sub-Plan, it will be necessary for
Silicon Image UK Limited (or its payroll administrators) to collect, hold and process
certain personal information about me and to transfer this data to the Company and to the
Plan Brokers. I consent to Silicon Image UK Limited collecting, holding and processing its
personal data and transferring this data to the Company or any other third parties insofar
as is reasonably necessary to implement, administer and manage the Sub-Plan.
	 
	 	(b)	 	I understand that I may, at any time, view my personal data, require any necessary
corrections to it or withdraw the consents herein in writing by contacting the Human
Resources Department of the Company (but acknowledge that without the use of such data it
may not be practicable for Silicon Image UK Limited and the Company to administer my
involvement in the Sub-Plan in a timely fashion or at all and this may be detrimental to
me.

	10.	 	I hereby agree to be bound by the terms of the Sub-Plan. The effectiveness of this
Subscription Agreement is dependent upon my eligibility to participate in the Sub-Plan.

11. I have read and understood this Subscription Agreement.

	 	 	 	 	 
	 

	 	Signature:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Date:	 	 
	 

	 	 	 	 

Please return this completed form to Silicon Image, Inc., Human Resources

Fax (408) 830-9531.

 

 

SILICON IMAGE, INC.

1999 EMPLOYEE STOCK PURCHASE PLAN

NOTICE OF SUSPENSION

I, ___, the undersigned participant in the Offering Period of the Silicon
Image, Inc. 1999 Employee Stock Purchase Plan (the “Plan”) which began on ___, hereby
notify Silicon Image, Inc. (the “Company”) that I wish to suspend my payroll deductions to the Plan
for the remainder of the Offering Period. I understand and agree that my request will be effective
beginning with the next payroll period commencing more than 15 days after the Company receives this
Notice of Suspension. I understand and agree that payroll deductions credited to my account prior
to the date this Notice of Suspension is effective will be used to purchase shares on the next
Purchase Date. I further understand that no additional payroll deductions will be made for the
purchase of shares in the current Offering Period, and I will be eligible to participate in
succeeding Offering Periods only by timely delivering to the Company a new Subscription Agreement
and Enrollment Form.

Name and address of Participant (please print):

	 	 	 	 	 
	Name:

	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Street Address or P.O. Box:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	City, State ZIP:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	Signature

	 	Date	 	 

Please return this form to Human Resources.

 

 

SILICON IMAGE, INC.

1999 EMPLOYEE STOCK PURCHASE PLAN

NOTICE OF WITHDRAWAL

I, ___, the undersigned participant in the Offering Period of the Silicon
Image, Inc. 1999 Employee Stock Purchase Plan (the “Plan”) which began on ___, hereby
notify Silicon Image, Inc. (the “Company”) that I wish to withdraw from the Offering Period. I
direct the Company to pay to me as promptly as practicable all payroll deductions credited to my
account with respect to such Offering Period. I understand and agree that my participation in the
Plan will terminate and no shares will be purchased for me at the end of the Purchase Period so
long as I submit this Notice of Withdrawal to the Company at least 15 days prior to the end of the
Purchase Period. I understand and agree that if I submit this Notice of Withdrawal to the Company
less than 15 days prior to the end of the Purchase Period, shares will be purchased for me
at the end of the Purchase Period, and my participation in the Plan will end at the beginning of
the next Purchase Period or Offering Period, as the case may be. I further understand that no
additional payroll deductions will be made for the purchase of shares in the current Offering
Period, and I shall be eligible to participate in succeeding Offering Periods only by timely
delivering to the Company a new Subscription Agreement and Enrollment Form.

Name and address of Participant (please print):

	 	 	 	 	 
	Name:

	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Street Address or P.O. Box:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	City, State ZIP:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	Signature

	 	Date	 	 

Please return this form to Human Resources.

 

 

	 	 	 	 	 
	Dated:	 	 (insert date)

SILICON IMAGE, INC.

- and -

SILICON IMAGE UK LIMITED

- and -

PARTICIPANT

 

JOINT ELECTION

 

TAYLOR WESSING

Carmelite

50 Victoria Embankment

Blackfriars

London EC4Y 0DX

Tel: +44 (0)20 7300 7000

Fax: +44 (0)20 7300 7100

DX 41 London

FINAL

13/03/2006

Ref: DNK/FXB/SIL–63–10

 

 

JOINT ELECTION

BETWEEN

	(1)	 	SILICON IMAGE, INC. whose registered office is at 1060 East Arques Avenue, Sunnyvale CA
94085, USA (the “Company”); and
	 
	(2)	 	SILICON IMAGE UK LIMITED (company registration no. 05293397) whose registered office is at
Carmelite, 50 Victoria Embankment, London EC4Y 0DX (the “Employer”); and
	 
	(3)	 	«Name» of «Address» (the “Participant” which shall include his executors or administrators in
the case of his death).

INTRODUCTION

	(A)	 	The Participant may be granted, from time to time, options (each one an “Option”) to
acquire shares of common stock in the Company (the “Shares”) on terms to be set out in stock
purchase agreements to be issued to the UK Sub-Plan of the Silicon Image, Inc. 1999 Employee
Stock Purchase Plan (the “Plan”).
	 
	(B)	 	This joint election (the “Joint Election”) is in an approved format. The exercise,
cancellation, release, assignment or other disposal of an Option is subject to the Participant
entering into this Joint Election.
	 
	(C)	 	The Participant is currently an employee of the Employer.
	 
	(D)	 	The exercise, release, cancellation, assignment or other disposal of an Option (a “Trigger
Event”) (whether in whole or in part), may result in the Employer or, if and to the extent
that there is a change in law, any other company or person who becomes the secondary
contributor for National Insurance contributions (“NIC”) purposes at the time of such Trigger
Event having a liability to pay employer’s (secondary) Class I NICs (or any tax or social
security premiums which may be introduced in substitution or in addition thereto) in respect
of such Trigger Event.
	 
	(E)	 	Where the context so admits, any reference in this Joint Election:

	 	(i)	 	to the singular number shall be construed as if it referred also to the plural
number and vice versa;
	 
	 	(ii)	 	to the masculine gender shall be construed as though it referred also to the
feminine gender;
	 
	 	(iii)	 	to a statute or statutory provision shall be construed as if it referred also
to that statute or provision as for the time being amended or re-enacted;
	 
	 	(iv)	 	Shares means shares of common stock of the Company.

 

 

AGREED TERMS

	1.	 	Joint Election
	1.1	 	It is a condition of the exercise, cancellation, release, assignment or other
disposal of an Option that the Participant has entered into this Joint Election with
the Employer.

	1.2	 	The Participant, the Company and the Employer elect to transfer the liability (the
“Liability”) for all of the employer’s (Secondary) Class I NICs, referred to in (D)
above and charged on payments or other benefits arising on a Trigger Event and treated
as remuneration and earnings pursuant to section 4(4)(a) of the Social Security
Contributions and Benefit Act 1992 (“SSCBA”) to the Participant. This Joint Election
is made pursuant to an arrangement authorised by paragraph 3B, Schedule 1 of the SSCBA.

2. RESTRICTION ON REGISTRATION UNTIL LIABILITY PAID BY PARTICIPANT

     The Participant hereby agrees that no Shares shall be registered in his name until he
has met the Liability as a result of a Trigger Event in accordance with this Joint Election.

3. PAYMENT

	3.1	 	Where, in relation to an Option, the Participant is liable, or is in accordance with current
practice at the date of the Trigger Event believed by the Employer to be liable (where
it is believed that the shares under option are readily convertible assets), to account
to the Inland Revenue for the Liability, the Participant and the Employer agree that,
upon receipt of the funds to meet the Liability from the Employee, that such funds to
meet the Liability shall be paid to the Collector of Taxes or other relevant taxation
authority by the Employer on the Participant’s behalf within 14 days of the end of the
income tax month in which the gain on the Option was made (“the 14 day period”) and for
the purposes of securing payment of the Liability the Participant will on the
occurrence of a Trigger Event:

	 	(a)	 	pay to the Employer a cash amount equal to the Liability; and/or
	 
	 	(b)	 	suffer a deduction from salary or other remuneration due to the Participant such
deduction being in an amount not exceeding the Liability; and/or
	 
	 	(c)	 	at the request of the Company enter into such arrangement or
arrangements necessary or expedient with such person or persons (including the
appointment of a nominee on behalf of the Participant) to effect the sale of
Shares acquired through the exercise of the Option to cover all or any part of
the Liability and use the proceeds to pay the Employer a cash amount equal to
the Liability.

	3.2	 	The Participant hereby irrevocably appoints the Company and the Employer as his
attorney with full power in his name to execute or sign any document and do any other
thing which the Company or the Employer may consider desirable for the purpose of
giving effect to the Participant satisfying the Liability under clause 3.1 and
satisfying any penalties and interest under clause 3.4. The Participant further agrees
to ratify and confirm whatever the Company and the Employer may lawfully do as his
attorney. In particular, the Employer and/or the Company will have the right to enter
into such an arrangement (as envisaged by clause 3.1(c)) on the Participant’s behalf to
sell sufficient of the Shares issued or transferred to the Participant on the exercise
of the

 

 

	 	 	Option to meet the Liability pursuant to clause 3.1 and any penalty or interest
arising under clause 3.4.

	3.3	 	The Employer shall pass all monies it has collected from the Participant in respect
of the Liability to the Collector of Taxes by no later than 14 days after the end of
the income tax month in which the Trigger Event occurred. The Employer shall be
responsible for any penalties or interest that may arise in respect of the Liability
from any failure on its part after it has collected any monies from the Participant to
pass the Liability to the Collector of Taxes within the said 14 days period.

	3.4	 	If the Participant has failed to pay all or part of the Liability to the Employer
within the 14 day period the Participant hereby indemnifies the Employer against such
penalties or interest that the Employer would have to pay in respect of the late
payment of all or part of the Liability to the Collector of Taxes.

	4.	 	TERMINATION OF JOINT ELECTION

	4.1	 	This Joint Election shall cease to have effect on the occurrence of any of the
following:

	(a)	 	if the terms of this Joint Election are satisfied in the
reasonable opinion of the Company, the Employer and the Participant;
	 
	(b)	 	if the Company, the Employer and the Participant jointly agree in
writing to revoke this Joint Election;
	 
	(c)	 	if the Inland Revenue withdraws approval of this Joint Election so
far as it relates to share options covered by the Joint Election but not yet
granted;
	 
	(d)	 	if the Options lapse or no Option is otherwise capable of being
exercised pursuant to the Plan; and/or
	 
	(e)	 	if the Company and/or the Employer serve notice on the Participant
that the Joint Election is to cease to have effect.

5. FURTHER ASSURANCE

	5.1	 	The Company, Employer and the Participant shall do all such things and execute all
such documents as may be necessary or desirable to ensure that this Joint Election
complies with all relevant legislation and/or Inland Revenue requirements.

	5.2	 	The Participant shall notify the Employer in writing of any Trigger Event which
occurs in relation to an Option within three days of such Trigger Event.

	5.3	 	The Company intends, as soon as practicable, to notify the Employer of the
Participant’s intention of exercising an Option and shall provide the Employer with
such information available to the Company to enable the Employer to calculate the
Liability arising on the Trigger Event.

	6.	 	SECONDARY CONTRIBUTOR
	 
	 	 	The Employer enters into this Joint Election on its own behalf and on behalf of the
Company, or, if and to the extent that there is a change in law, any other company or person
who is or becomes a secondary contributor for NIC purposes in respect of an Option. It is
agreed that the Employer can enforce the terms of this Joint Election against the
Participant on behalf of any such company.

 

 

	7.	 	BINDING EFFECT

	7.1	 	The Participant agrees to be bound by the terms of this Joint Election and for the
avoidance of doubt the Participant shall continue to be bound by the terms of this
Joint Election regardless of which country the Participant is working in when the
Liability arises and regardless of whether the Participant is an employee of the
Employer when the Liability arises.

	7.2	 	The Employer and the Company agree to be bound by the terms of this Joint Election
and for the avoidance of doubt the Employer and Company shall continue to be bound by
the terms of this Joint Election regardless of which country the Participant is working
in when the Liability arises and regardless of whether the Participant is an employee
of the Employer when the Liability arises.

8. GOVERNING LAW

	8.1	 	This Joint Election shall be governed by and construed in accordance with English
law and the parties irrevocably submit to the non-exclusive jurisdiction of the English
Courts to settle any claims, disputes or issues which may arise out of this deed.

 

 

This Joint Election has been executed and delivered as a deed on the date written above.

SIGNED as a Deed

	 	 	 	 	 
	By

	 	 	 	 
	 

	 	 	 	 
	 

	 	«Name1»	 	 

in the presence of:

Witness signature:

	 	 	 
	Name:
	 	 
	 

	 	 
	 
	 	 
	Address:
	 	 
	 

	 	 
	 
	 	 
	Occupation:
	 	 
	 

	 	 

SIGNED as a DEED

by SILICON IMAGE UK LIMITED

acting by:

	 	 	 
	 

Robert Freeman

	 	 
	Director
	 	 

	 	 	 
	 

Steve Tirado

	 	 
	Director
	 	 

SIGNED as a DEED

By SILICON IMAGE, INC.

acting by the under-mentioned

person(s) acting on the authority

of the Company in accordance

with the laws of the territory of

its incorporation:

	 	 	 
	 

Name:

	 	 
	Corporate Secretary
	 	 

	 	 	 
	 

Steve Tirado

	 	 
	President and CEO

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00118-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00118-of-00352.parquet"}]]