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                                                                    EXHIBIT 10.3

                             SYNAPTICS INCORPORATED

                             1996 STOCK OPTION PLAN
                      (AS AMENDED THROUGH FEBRUARY 9, 2001)

         1.       Purposes of the Plan. The purposes of this 1996 Stock Option
Plan are to attract and retain the best available personnel for positions of
substantial responsibility, to provide additional incentive to Employees and
Consultants of the Company and its Subsidiaries and to promote the success of
the Company's business. Options granted under the Plan may be incentive stock
options (as defined under Section 422 of the Code) or nonstatutory stock
options, as determined by the Administrator at the time of grant of an option
and subject to the applicable provisions of Section 422 of the Code, as amended,
and the regulations promulgated thereunder.

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

                  (a) "Administrator" means the Board or any of its Committees
appointed pursuant to Section 4 of the Plan.

                  (b) "Board" means the Board of Directors of the Company.

                  (c) "Code" means the Internal Revenue Code of 1986, as
amended.

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

                  (e) "Common Stock" means the Common Stock of the Company.

                  (f) "Company" means Synaptics Incorporated, a California
corporation.

                  (g) "Consultant" means any person, including an advisor, who
is engaged by the Company or any Parent or Subsidiary to render services and is
compensated for such services, and any director of the Company whether
compensated for such services or not, provided that if and in the event the
Company registers any class of any equity security pursuant to the Exchange Act,
the term Consultant shall thereafter not include directors who are not
compensated for their services or are paid only a director's fee by the Company.

                  (h) "Continuous Status as an Employee or Consultant" means the
absence of any interruption or termination of service as an Employee or
Consultant. Continuous Status as an Employee or Consultant shall not be
considered interrupted in the case of: (i) sick leave; (ii) military leave;
(iii) any other leave of absence approved by the Administrator, provided that
such leave is for a period of not more than ninety (90) days, unless
reemployment upon the expiration of such leave is guaranteed by contract or
statute, or unless provided otherwise pursuant to Company policy adopted from
time to time; or (iv) in the case of transfers between locations of the Company
or between the Company, its Subsidiaries or their respective successors. For
purposes of this Plan, a change in status from an Employee to a Consultant or
from a Consultant to an Employee will not constitute an interruption of
Continuous Status as an Employee or Consultant.
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                  (i) "Employee" means any person, including officers and
directors, employed by the Company or any Parent or Subsidiary of the Company,
with the status of employment determined based upon such minimum number of hours
or periods worked as shall be determined by the Administrator in its discretion,
subject to any requirements of the Code. The payment of a director's fee to a
Director shall not be sufficient to constitute "employment" of such Director by
the Company.

                  (j) "Exchange Act" means the Securities Exchange Act of 1934,
as amended.

                  (k) "Fair Market Value" means, as of any date, the fair market
value of Common Stock determined as follows:

                           (i) If the Common Stock is listed on any established
stock exchange or a national market system including without limitation the
National Market of the National Association of Securities Dealers, Inc.
Automated Quotation ("NASDAQ") System, its Fair Market Value shall be the
closing sales price for such stock (or the closing bid, if no sales were
reported), as quoted on such system or exchange, or the exchange with the
greatest volume of trading in Common Stock for the last market trading day prior
to the time of determination, as reported in The Wall Street Journal or such
other source as the Administrator deems reliable;

                           (ii) If the Common Stock is quoted on the NASDAQ
System (but not on the National Market thereof) or regularly quoted by a
recognized securities dealer but selling prices are not reported, its Fair
Market Value shall be the mean between the high bid and low asked prices for the
Common Stock for the last market trading day prior to the time of determination,
as reported in The Wall Street Journal or such other source as the Administrator
deems reliable; or

                           (iii) In the absence of an established market for the
Common Stock, the Fair Market Value thereof shall be determined in good faith by
the Administrator.

                  (l) "Incentive Stock Option" means an Option intended to
qualify as an incentive stock option within the meaning of Section 422 of the
Code, as designated in the applicable written option agreement.

                  (m) "Nonstatutory Stock Option" means an Option not intended
to qualify as an Incentive Stock Option, as designated in the applicable written
option agreement.

                  (n) "Option" means a stock option granted pursuant to the
Plan.

                  (o) "Optioned Stock" means the Common Stock subject to an
Option.

                  (p) "Optionee" means an Employee or Consultant who receives an
Option.

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

                  (r) "Plan" means this 1996 Stock Option Plan.

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                  (s) "Reporting Person" means an officer, director, or greater
than ten percent shareholder of the Company within the meaning of Rule 16a-2
under the Exchange Act, who is required to file reports pursuant to Rule 16a-3
under the Exchange Act.

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

                  (u) "Share" means a share of the Common Stock, as adjusted in
accordance with Section 11 of the Plan.

                  (v) "Stock Exchange" means any stock exchange or consolidated
stock price reporting system on which prices for the Common Stock are quoted at
any given time.

                  (w) "Subsidiary" means a "subsidiary corporation," whether now
or hereafter existing, as defined in Section 424(f) of the Code, or any
successor provision.

         3.       Stock Subject to the Plan. Subject to the provisions of
Section 11 of the Plan, the maximum aggregate number of shares that may be
optioned and sold under the Plan is 5,380,918 shares of Common Stock. The shares
may be authorized, but unissued, or reacquired Common Stock. If an Option should
expire or become unexercisable for any reason without having been exercised in
full, the unpurchased Shares that were subject thereto shall, unless the Plan
shall have been terminated, become available for future grant under the Plan. In
addition, any shares of Common Stock which are retained by the Company upon
exercise of an Option in order to satisfy the exercise or purchase price for
such Option or any withholding taxes due with respect to such exercise shall be
treated as not issued and shall continue to be available under the Plan. Shares
repurchased by the Company pursuant to any repurchase right which the Company
may have shall not be available for future grant under the Plan.

         4.       Administration of the Plan.

                  (a) Initial Plan Procedure. Prior to the date, if any, upon
which the Company becomes subject to the Exchange Act, the Plan shall be
administered by the Board or a committee appointed by the Board.

                  (b) Plan Procedure After the Date, if Any, Upon Which the
Company Becomes Subject to the Exchange Act.

                           (i) Multiple Administrative Bodies. If permitted by
Rule 16b-3, grants under the Plan may be made by different bodies with respect
to directors, non-director officers and Employees or Consultants who are not
Reporting Persons.

                           (ii) Administration With Respect to Reporting
Persons. With respect to grants of Options to Employees who are Reporting
Persons, such grants shall be made by (A) the Board if the Board may make grants
to Reporting Persons under the Plan in compliance with Rule 16b-3, or (B) a
committee designated by the Board to make grants to Reporting Persons under the
Plan, which committee shall be constituted in such a manner as to permit grants
under the Plan to comply with Rule 16b-3. Once appointed, such committee shall
continue to serve in its designated capacity until otherwise directed by the
Board. From time to time the Board may

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increase the size of the committee and appoint additional members thereof,
remove members (with or without cause) and appoint new members in substitution
therefor, fill vacancies, however caused, and remove all members of the
committee and thereafter directly make grants to Reporting Persons under the
Plan, all to the extent permitted by Rule 16b-3.

                           (iii) Administration with Respect to Consultants and
Other Employees. With respect to grants of Options to Employees or Consultants
who are not Reporting Persons, the Plan shall be administered by (A) the Board
or (B) a committee designated by the Board, which committee shall be constituted
in such a manner as to satisfy the legal requirements relating to the
administration of incentive stock option plans, if any, of California corporate
and securities laws, of the Code and of any applicable Stock Exchange (the
"Applicable Laws"). Once appointed, such Committee shall continue to serve in
its designated capacity until otherwise directed by the Board. From time to time
the Board may increase the size of the Committee and appoint additional members
thereof, remove members (with or without cause) and appoint new members in
substitution therefor, fill vacancies, however caused, and remove all members of
the Committee and thereafter directly administer the Plan, all to the extent
permitted by the Applicable Laws.

                  (c) Powers of the Administrator. Subject to the provisions of
the Plan and in the case of a Committee, the specific duties delegated by the
Board to such Committee, and subject to the approval of any relevant
authorities, including the approval, if required, of any Stock Exchange, the
Administrator shall have the authority, in its discretion:

                           (i) to determine the Fair Market Value of the Common
Stock, in accordance with Section 2(k) of the Plan;

                           (ii) to select the Consultants and Employees to whom
Options may from time to time be granted hereunder;

                           (iii) to determine whether and to what extent Options
or any combination thereof are granted hereunder;

                           (iv) to determine the number of shares of Common
Stock to be covered by each such option granted hereunder;

                           (v) to approve forms of agreement for use under the
Plan;

                           (vi) to determine the terms and conditions, not
inconsistent with the terms of the Plan, of any option granted hereunder;

                           (vii) to determine whether and under what
circumstances an Option may be settled in cash under Section 9(f) instead of
Common Stock;

                           (viii) to reduce the exercise price of any Option to
the then current Fair Market Value if the Fair Market Value of the Common Stock
covered by such Option shall have declined since the date the Option was
granted;

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                           (ix) to construe and interpret the terms of the Plan
and Options granted under the Plan; and

                           (x) in order to fulfill the purposes of the Plan and
without mending the Plan, to modify grants of Options to participants who are
foreign nationals or employed outside of the United States in order to recognize
differences in local law, tax policies or customs.

                  (d) Effect of Administrator's Decision. All decisions,
determinations and interpretations of the Administrator shall be final and
binding on all holders of Options.

         5.       Eligibility.

                  (a) Recipients of Grants. Nonstatutory Stock Options may be
granted to Employees and Consultants. Incentive Stock Options may be granted
only to Employees. An Employee or Consultant who has been granted an Option may,
if he or she is otherwise eligible, be granted additional Options.

                  (b) Type of Option. Each Option shall be designated in the
written option agreement as either an Incentive Stock Option or a Nonstatutory
Stock Option. However, notwithstanding such designations, to the extent that the
aggregate Fair Market Value of the Shares with respect to which Options
designated as Incentive Stock Options are exercisable for the first time by any
Optionee during any calendar year (under all plans of the Company or any Parent
or Subsidiary) exceeds $100,000, such excess Options shall be treated as
Nonstatutory Stock Options. For purposes of this Section 5(b), Incentive Stock
Options shall be taken into account in the order in which they were granted, and
the Fair Market Value of the Shares subject to an Incentive Stock Option shall
be determined as of the date of the grant of such Option.

                  (c) Employment Relationship. The Plan shall not confer upon
any Optionee any right with respect to continuation of employment or consulting
relationship with the Company, nor shall it interfere in any way with such
Optionee's right or the Company's right to terminate his or her employment or
consulting relationship at any time, with or without cause.

         6.       Term of Plan. The Plan shall become effective upon the earlier
to occur of its adoption by the Board of Directors or its approval by the
shareholders of the Company as described in Section 18 of the Plan. It shall
continue in effect for a term of ten (10) years unless sooner terminated under
Section 14 of the Plan.

         7.       Term of Option. The term of each Option shall be the term
stated in the Option Agreement; provided, however, that the term shall be no
more than ten (10) years from the date of grant thereof or such shorter term as
may be provided in the Option Agreement. However, in the case of an Incentive
Stock Option granted to an Optionee who, at the time the Option is granted, owns
stock representing more than ten percent (10%) of the total combined voting
power of all classes of stock of the Company or any Parent or Subsidiary, the
term of the Option shall be five (5) years from the date of grant thereof or
such shorter term as may be provided in the Option Agreement.

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         8.       Option Exercise Price and Consideration.

                  (a) The per share exercise price for the Shares to be issued
pursuant to exercise of an Option shall be such price as is determined by the
Board, but shall be subject to the following:

                           (i) In the case of an Incentive Stock Option that is:

                                    (A) granted to an Employee who, at the time
of the grant of such Incentive Stock Option, owns stock representing more than
ten percent (10%) of the total combined voting power of all classes of stock of
the Company or any Parent or Subsidiary, the per Share exercise price shall be
no less than 110% of the Fair Market Value per Share on the date of grant.

                                    (B) granted to any Employee, the per Share
exercise price shall be no less than 100% of the Fair Market Value per Share on
the date of grant.

                           (ii) In the case of a Nonstatutory Stock Option that
is:

                                    (A) granted to a person who, at the time of
the grant of such Option, owns stock representing more than ten percent (10%) of
the total combined voting power of all classes of stock of the Company or any
Parent or Subsidiary, the per Share exercise price shall be no less than 110% of
the Fair Market Value per Share on the date of the grant.

                                    (B) granted to any person, the per Share
exercise price shall be no less than 85% of the Fair Market Value per Share on
the date of grant.

                  (b) The consideration to be paid for the Shares to be issued
upon exercise of an Option, including the method of payment, shall be determined
by the Administrator (and, in the case of an Incentive Stock Option, shall be
determined at the time of grant) and may consist entirely of (l) cash, (2)
check, (3) promissory note, (4) other Shares that (x) in the case of Shares
acquired upon exercise of an Option, have been owned by the Optionee for more
than six months on the date of surrender or such other period as may be required
to avoid a charge to the Company's earnings, and (y) have a Fair Market Value on
the date of surrender equal to the aggregate exercise price of the Shares as to
which such Option shall be exercised, (5) authorization for the Company to
retain from the total number of Shares as to which the Option is exercised that
number of Shares having a Fair Market Value on the date of exercise equal to the
exercise price for the total number of Shares as to which the Option is
exercised, (6) delivery of a properly executed exercise notice together with
such other documentation as the Administrator and the broker, if applicable,
shall require to effect an exercise of the Option and delivery to the Company of
the sale or loan proceeds required to pay the exercise price and any applicable
income or employment taxes, (7) delivery of an irrevocable subscription
agreement for the Shares that irrevocably obligates the option holder to take
and pay for the Shares not more than twelve months after the date of delivery of
the subscription agreement, (8) any combination of the foregoing methods of
payment, or (9) such other consideration and method of payment for the issuance
of Shares to the extent permitted under Applicable Laws. In making its
determination as to the type of consideration to accept, the Administrator shall
consider if acceptance of such consideration may be reasonably expected to
benefit the Company.

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         9.       Exercise of Option.

                  (a) Procedure for Exercise; Rights as a Shareholder. Any
Option granted hereunder shall be exercisable at such times and under such
conditions as determined by the Administrator, including performance criteria
with respect to the Company and/or the Optionee, and as shall be permissible
under the terms of the Plan; provided that prior to the date upon which the
Company becomes subject to the Exchange Act, such Option shall become
exercisable at the rate of at least twenty percent (20%) per year over five (5)
years from the date the Option is granted and in the event that any of the
Shares issued upon exercise of an Option should be subject to a right of
repurchase in the Company's favor, such repurchase right shall lapse at the rate
of at least twenty, percent (20%) per year over five (5) years from the date the
Option is granted. Notwithstanding the above, in the case of an Option granted
to an officer, director or consultant of the Company, the Option may become
fully exercisable, and a repurchase right in favor of the Company shall lapse,
at any time or during any period established by the Administrator.

         An Option may not be exercised for a fraction of a Share.

         An Option shall be deemed to be exercised when written notice of such
exercise has been given to the Company in accordance with the terms of the
Option by the person entitled to exercise the Option and the Company has
received full payment for the Shares with respect to which the Option is
exercised. Full payment may, as authorized by the Board, consist of any
consideration and method of payment allowable under Section 8(b) of the Plan.
Until the issuance (as evidenced by the appropriate entry on the books of the
Company or of a duly authorized transfer agent of the Company) of the stock
certificate evidencing such Shares, no right to vote or receive dividends or any
other rights as a shareholder shall exist with respect to the Optioned Stock,
not withstanding the exercise of the option. The Company shall issue (or cause
to be issued) such stock certificate promptly upon exercise of the Option. No
adjustment will be made for a dividend or other right for which the record date
is prior to the date the stock certificate is issued, except as provided in
Section 11 of the Plan.

         Exercise of an option in any manner shall result in a decrease in the
number of Shares that thereafter may be available, both for purposes of the Plan
and for sale under the Option, by the number of Shares as to which the Option is
exercised.

                  (b) Termination of Employment or Consulting Relationship.
Subject to Section 9(c), in the event of termination of an Optionee's Continuous
Status as an Employee or Consultant with the Company, such Optionee may, but
only within three (3) months (or such other period of time not less than thirty
(30) days as is determined by the Administrator, with such determination in the
case of an Incentive Stock Option being made at the time of grant of the Option
and not exceeding three (3) months) after the date of such termination (but in
no event later than the expiration date of the term of such Option as set forth
in the Option Agreement), exercise his or her Option to the extent that the
Optionee was entitled to exercise it at the date of such termination. To the
extent that Optionee was not entitled to exercise the Option at the date of such
termination, or if Optionee does not exercise such Option to the extent so
entitled within the time specified herein, the Option shall terminate. No
termination shall be

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deemed to occur and this Section 9(b) shall not apply if (i) the Optionee is a
Consultant who becomes an Employee; or (ii) the Optionee is an Employee who
becomes a Consultant.

                  (c) Disability of Optionee.

                           (i) Notwithstanding Section 9(b) above, in the event
of termination of an Optionee's Continuous Status as an Employee or Consultant
as a result of his or her total and permanent disability (within the meaning of
Section 22(e)(3) of the Code), Optionee may, but only within twelve (12) months
from the date of such termination (but in no event later than the expiration
date of the term of such Option as set forth in the Option Agreement), exercise
the Option to the extent otherwise entitled to exercise it at the date of such
termination. To the extent that Optionee was not entitled to exercise the Option
at the date of termination, or if Optionee does not exercise such Option to the
extent so entitled within the time specified herein, the Option shall terminate.

                           (ii) In the event of termination of an Optionee's
Continuous Status as an Employee or Consultant as a result of a disability which
does not fall within the meaning of total and permanent disability (as set forth
in Section 22(e)(3) of the Code), Optionee may, but only within six (6) months
from the date of such termination (but in no event later than the expiration
date of the term of such Option as set forth in the Option Agreement), exercise
the Option to the extent otherwise entitled to exercise it at the date of such
termination. However, to the extent that such Optionee fails to exercise an
Option which is an Incentive Stock Option ("ISO") (within the meaning of Section
422 of the Code) within three (3) months of the date of such termination, the
Option will not qualify for ISO treatment under the Code. To the extent that
Optionee was not entitled to exercise the Option at the date of termination, or
if Optionee does not exercise such Option to the extent so entitled within six
months (6) from the date of termination, the Option shall terminate.

                  (d) Death of Optionee. In the event of the death of an
Optionee during the period of Continuous Status as an Employee or Consultant
since the date of grant of the Option, or within thirty (30) days following
termination of Optionee's Continuous Status as an Employee or Consultant, the
Option may be exercised, at any time within six (6) months following the date of
death (but in no event later than the expiration date of the term of such Option
as set forth in the Option Agreement), by Optionee's estate or by a person who
acquired the right to exercise the Option by bequest or inheritance, but only to
the extent of the right to exercise that had accrued at the date of death or, if
earlier, the date of termination of Optionee's Continuous Status as an employee
or Consultant. To the extent that Optionee was not entitled to exercise the
Option at the date of death or termination, as the case may be, or if Optionee
does not exercise such Option to the extent so entitled within the time
specified herein, the Option shall terminate.

                  (e) Rule 16b-3. Options granted to Reporting Persons shall
comply with Rule 16b-3 and shall contain such additional conditions or
restrictions as may be required thereunder to qualify for the maximum exemption
for Plan transactions.

                  (f) Buyout Provisions. The Administrator may at any time offer
to buy out for a payment in cash or Shares, an Option previously granted, based
on such terms and conditions

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as the Administrator shall establish and communicate to the Optionee at the time
that such offer is made.

         10.      Stock Withholding to Satisfy Withholding Tax Obligations. At
the discretion of the Administrator, Optionees may satisfy withholding
obligations as provided in this paragraph. When an Optionee incurs tax liability
in connection with an Option, which tax liability is subject to tax withholding
under applicable tax laws, and the Optionee is obligated to pay the Company an
amount required to be withheld under applicable tax laws, the Optionee may
satisfy the withholding tax obligation by one or some combination of the
following methods: (a) by cash payment, or (b) out of Optionee's current
compensation, (c) if pertained by the Administrator, in its discretion, by
surrendering to the Company Shares that (i) in the case of Shares previously
acquired from the Company, have been owned by the Optionee for more than six
months on the date of surrender, and (ii) have a fair market value on the date
of surrender equal to or less than Optionee's marginal tax rate times the
ordinary income recognized, or (d) by electing to have the Company withhold from
the Shares to be issued upon exercise of the Option, if any, that number of
Shares having a fair market value equal to the amount required to be withheld.
For this purpose, the fair market value of the Shares to be withheld shall be
determined on the date that the amount of tax to be withheld is to be determined
(the "Tax Date").

         Any surrender by a Reporting Person of previously owned Shares to
satisfy tax withholding obligations arising upon exercise of this Option must
comply with the applicable provisions of Rule 16b-3.

         All elections by an Optionee to have Shares withheld to satisfy tax
withholding obligations shall be made in writing in a form acceptable to the
Administrator and shall be subject to the following restrictions:

                  (a) the election must be made on or prior to the applicable
Tax Date;

                  (b) once made, the election shall be irrevocable as to the
particular Shares of the Option as to which the election is made; and

                  (c) all elections shall be subject to the consent or
disapproval of the Administrator.

         In the event the election to have Shares withheld is made by an
Optionee and the Tax Date is deferred under Section 83 of the Code because no
election is filed under Section 83(b) of the Code, the Optionee shall receive
the full number of Shares with respect to which the Option is exercised but such
Optionee shall be unconditionally obligated to tender back to the Company the
proper number of Shares on the Tax Date.

         11.      Adjustments Upon Changes in Capitalization, Merger or Certain
Other Transactions.

                  (a) Changes in Capitalization. Subject to any required action
by the shareholders of the Company, the number of shares of Common Stock covered
by each outstanding Option, and the number of shares of Common Stock that have
been authorized for issuance under the Plan but as to which no Options have yet
been granted or that have been

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returned to the Plan upon cancellation or expiration of an Option, as well as
the price per share of Common Stock covered by each such outstanding Option,
shall be proportionately adjusted for any increase or decrease in the number of
issued shares of Common Stock resulting from a stock split, reverse stock split,
stock dividend, combination, recapitalization or reclassification of the Common
Stock, or any other increase or decrease in the number of issued shares of
Common Stock effected without receipt of consideration by the Company; provided,
however, that conversion of any convertible securities of the Company shall not
be deemed to have been "effected without receipt of consideration." Such
adjustment shall be made by the Board, whose determination in that respect shall
be final, binding and conclusive. Except as expressly provided herein, no
issuance by the Company of shares of stock of any class, or securities
convertible into shares of stock of any class, shall affect, and no adjustment
by reason thereof shall be made with respect to, the number or price of shares
of Common Stock subject to an Option.

                  (b) Dissolution or Liquidation. In the event of the proposed
dissolution or liquidation of the Company, the Board shall notify the Optionee
at least fifteen (15) days prior to such proposed action. To the extent it has
not been previously exercised, the Option will terminate immediately prior to
the consummation of such proposed action.

                  (c) Merger or Sale of Assets. In the event of a proposed sale
of all or substantially all of the Company's assets or a merger of the Company
with or into another corporation where the successor corporation issues its
securities to the Company's shareholders, each outstanding Option shall be
assumed or an equivalent option or right shall be substituted by such successor
corporation or a parent or subsidiary of such successor corporation, unless the
successor corporation does not agree to assume the Option or to substitute an
equivalent option, in which case such Option shall terminate upon the
consummation of the merger or sale of assets.

                  (d) Certain Distributions. In the event of any distribution to
the Company's shareholders of securities of any other entity or other assets
(other than dividends payable in cash or stock of the Company) without receipt
of consideration by the Company, the Administrator may, in its discretion,
appropriately adjust the price per share of Common Stock covered by each
outstanding Option to reflect the effect of such distribution.

         12.      Non-Transferability of Options. Options may not be sold,
pledged, assigned, hypothecated, transferred, or disposed of in any manner other
than by will or by the laws of descent or distribution and may be exercised or
purchased during the lifetime of the Optionee, only by the Optionee.

         13.      Time of Granting Options. The date of grant of an Option
shall, for all purposes, be the date on which the Administrator makes the
determination granting such Option, or such other date as is determined by the
Board; provided however that in the case of any Incentive Stock Option, the
grant date shall be the later of the date on which the Administrator makes the
determination granting such Incentive Stock Option or the date of commencement
of the Optionee's employment relationship with the Company. Notice of the
determination shall be given to each Employee or Consultant to whom an Option is
so granted within a reasonable time after the date of such grant.

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         14.      Amendment and Termination of the Plan.

                  (a) Authority to Amend or Terminate. The Board may at any time
amend, alter, suspend or discontinue the Plan, but no amendment, alteration,
suspension or discontinuation shall be made that would impair the rights of any
Optionee under any grant theretofore made, without his or her consent. In
addition, to the extent necessary and desirable to comply with Rule 16b-3 or
with Section 422 of the Code (or any other applicable law or regulation,
including the requirements of any Stock Exchange), the Company shall obtain
shareholder approval of any Plan amendment in such a manner and to such a degree
as required.

                  (b) Effect of Amendment or Termination. No amendment or
termination of the Plan shall adversely affect Options already granted, unless
mutually agreed otherwise between the Optionee and the Board, which agreement
must be in writing and signed by the Optionee and the Company.

         15.      Conditions Upon Issuance of Shares. Shares shall not be issued
pursuant to the exercise of an Option unless the exercise of such Option and the
issuance and deliver of such Shares pursuant thereto shall comply with all
relevant provisions of law, including, without limitation, the Securities Act of
1933, as amended, the Exchange Act, the rules and regulations promulgated
thereunder, and the requirements of any Stock Exchange.

         As a condition to the exercise of an Option, the Company may require
the person exercising such Option to represent and warrant at the time of any
such exercise that the Shares are being purchased only for investment and
without any present intention to sell or distribute such Shares if, in the
opinion of counsel for the Company, such a representation is required by law.

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

         17.      Agreements. Options shall be evidenced by written agreements
in such form as the Administrator shall approve from time to time.

         18.      Shareholder Approval. Continuance of the Plan shall be subject
to approval by the shareholders of the Company within twelve (12) months before
or after the date the Plan is adopted. Such shareholder approval shall be
obtained in the degree and manner required under applicable state and federal
law and the rules of any Stock Exchange upon which the Common Stock is listed.
All Options issued under the Plan shall become void in the event such approval
is not obtained.

         19.      Information and Documents to Optionees. The Company shall
provide financial statements at least annually to each Optionee during the
period such Optionee has one or more Options outstanding, and in the case of an
individual who acquired Shares pursuant to the Plan,

                                       11
<PAGE>   12
during the period such individual owns such Shares. The Company shall not be
required to provide such information if the issuance of Options under the Plan
is limited to key employees whose duties in connection with the Company assure
their access to equivalent information. In addition, at the time of issuance of
any securities under the Plan, the Company shall provide to the Optionee a copy
of the Plan and a copy of any agreement(s) pursuant to which securities under
the Plan are issued.

                                       12
<PAGE>   13
                             SYNAPTICS INCORPORATED

                             1996 STOCK OPTION PLAN

                          NOTICE OF STOCK OPTION GRANT

((Optionee)),

         You have been granted an option to purchase Common Stock "Common Stock"
of Synaptics Incorporated (the "Company") as follows:

<TABLE>
<S>                                                <C>
         Date of  Grant:                           ((GrantDate))

         Vesting Commencement Date:                ((VestingCommenceDate))

         Exercise Price per Share:                 $((ExercisePrice))

         Total Number of Shares Granted:           ((NoofShares))

         Total Exercise Price:                     $((TotalExercisePrice))

         Type of Option:                           ((ISO)) Incentive Stock Option

                                                   ((NSO)) Nonstatutory Stock Option

         Term/Expiration Date:                     ((ExpirDate))

         Vesting Schedule:                         This Option may be exercised, in whole or in part, in
                                                   accordance with the following schedule: 25% of the Shares
                                                   subject to the Option shall vest on the twelve (12) month
                                                   anniversary of the Vesting Commencement Date and 1/48th of the
                                                   total number of Shares subject to the Option shall vest on
                                                   the((MonthVestDate))of each month thereafter.

         Termination Period:                       This Option may be exercised for 90 days after termination of
                                                   employment or consulting relationship except as set out in
                                                   Sections 6 and 7 of the Stock Option Agreement (but in no
                                                   event later than the Expiration Date).
</TABLE>
<PAGE>   14
         By your signature and the signature of the Company's representative
below, you and the Company agree that this Option is granted under and governed
by the terms and conditions of the 1996 Stock Option Plan and the Stock Option
Agreement, both of which are attached and made a part of this document.

((OPTIONEE)):                               SYNAPTICS INCORPORATED

------------------------------              By:------------------------------
Signature

                                               Francis Lee, President
------------------------------                 ------------------------------
Print Name                                     (Print Name and Title)

                                      -2-
<PAGE>   15
                              SYNAPTIC INCORPORATED

                             1996 STOCK OPTION PLAN

                             STOCK OPTION AGREEMENT

         1.       GRANT OF OPTION. Synaptics Incorporated, a California
corporation (the "Company"), hereby grants to ((Optionee)) ("Optionee"), an
option (the "Option") to purchase a total number of shares of Common Stock (the
"Shares") set forth in the Notice of Stock Option Grant, at the exercise price
per share set forth in the Notice of Stock Option Grant (the "Exercise Price")
subject to the terms, definitions and provisions of the Synaptics Incorporated
1996 Stock Option Plan (the "Plan") adopted by the Company, which is
incorporated herein by reference. Unless otherwise defined herein, the terms
defined in the Plan shall have the same defined meanings in this Option.

         If designated an Incentive Stock Option, this Option is intended to
qualify as an Incentive Stock Option as defined in Section 422 of the Code.

         2.       EXERCISE OF OPTION. This Option shall be exercisable during
its Term in accordance with the Vesting Schedule set out in the Notice of Stock
Option Grant and with the provisions of Section 9 of the Plan as follows:

                  (a) RIGHT TO EXERCISE.

                           (i)   This Option may not be exercised for a fraction
of a share.

                           (ii)  In the event of Optionee's death, disability or
other termination of employment, the exercisability of the Option is governed by
Sections 5, 6 and 7 below, subject to the limitation contained in Section
2(a)(i).

                           (iii) In no event may this Option be exercised after
the Expiration Date of this Option as set forth in the Notice of Stock Option
Grant.

                  (b) METHOD OF EXERCISE. This Option shall be exercisable by
execution and delivery of the Exercise Notice and Restricted Stock Purchase
Agreement attached hereto as Exhibit A (the "Exercise Agreement") or of any
other form of written notice approved for such purpose by the Company which
shall state the election to exercise the Option, the number of Shares in respect
of which the Option is being exercised, and such other representations and
agreements as to the holder's investment intent with respect to such shares of
Common Stock as may be required by the Company pursuant to the provisions of the
Plan. Such written notice shall be signed by Optionee and shall be delivered in
person or by certified mail to the Secretary of the Company. The written notice
shall be accompanied by payment of the Exercise Price. This Option shall be
deemed to be exercised upon receipt by the Company of such written notice
accompanied by the Exercise Price.
<PAGE>   16
         No Shares will be issued pursuant to the exercise of an Option unless
such issuance and such exercise shall comply with all relevant provisions of
applicable law and the requirements of any stock exchange upon which the Shares
may then be listed. Assuming such compliance, for income tax purposes the Shares
shall be considered transferred to Optionee on the date on which the Option is
exercised with respect to such Shares.

         3.       METHOD OF PAYMENT. Payment of the Exercise Price shall be by
any of the following, or a combination thereof, at the election of Optionee:

                  (a) cash;

                  (b) check;

                  (c) surrender of other shares of Common Stock of the Company
which (i) in the case of Shares acquired pursuant to the exercise of a Company
option, have been owned by Optionee for more than six months on the date of
surrender, and (ii) have a Fair Market Value on the date of surrender equal to
the Exercise Price of the Shares as to which the Option is being exercised;

                  (d) if there is a public market for the Shares and they are
registered under the Exchange Act, delivery of a properly executed exercise
notice together with irrevocable instructions to a broker to deliver promptly to
the Company the amount of sale or loan proceeds required to pay the Exercise
Price; or

                  (e) a promissory note.

         4.       RESTRICTIONS ON EXERCISE. This Option may not be exercised
until such time as the Plan has been approved by the shareholders of the
Company, or if the issuance of such Shares upon such exercise or the method of
payment of consideration for such shares would constitute a violation of any
applicable federal or state securities or other law or regulation, including any
rule under Part 207 of Title 12 of the Code of Federal Regulations as
promulgated by the Federal Reserve Board. As a condition to the exercise of this
Option, the Company may require Optionee to make any representation and warranty
to the Company as may be required by any applicable law or regulation.

         5.       TERMINATION OF RELATIONSHIP. In the event of termination of
Optionee's Continuous Status as an Employee or Consultant, Optionee may, to the
extent otherwise so entitled at the date of such termination (the "Termination
Date"), exercise this Option during the Termination Period set forth in the
Notice of Stock Option Grant. To the extent that Optionee was not entitled to
exercise this Option at such Termination Date, or if Optionee does not exercise
this Option within the Termination Period, the Option shall terminate.

         6.       DISABILITY OF OPTIONEE.

                  (a) Notwithstanding the provisions of Section 5 above, in the
event of termination of Optionee's Continuous Status as an Employee or
Consultant as a result of

                                      -2-
<PAGE>   17
Optionee's total and permanent disability (as defined in Section 22(e)(3) of the
Code), Optionee may, but only within twelve months from the Termination Date
(but in no event later than the Expiration Date set forth in the Notice of Stock
Option Grant), exercise this Option to the extent Optionee was entitled to
exercise it as of such Termination Date. To the extent that Optionee was not
entitled to exercise the Option as of the Termination Date, or if Optionee does
not exercise such Option (to the extent so entitled) within the time specified
in this Section 6(a), the Option shall terminate.

                  (b) Notwithstanding the provisions of Section 5 above, in the
event of termination of Optionee's consulting relationship or Continuous Status
as an Employee as a result of disability not constituting a total and permanent
disability (as set forth in Section 22(e)(3) of the Code), Optionee may, but
only within six months from the Termination Date (but in no event later than the
Expiration Date set forth in the Notice of Stock Option Grant), exercise the
Option to the extent Optionee was entitled to exercise it as of such Termination
Date; provided, however, that if this is an Incentive Stock Option and Optionee
fails to exercise this Incentive Stock Option within three months from the
Termination Date, this Option will cease to qualify as an Incentive Stock Option
(as defined in Section 422 of the Code) and Optionee will be treated for federal
income tax purposes as having received ordinary income at the time of such
exercise in an amount generally measured by the difference between the Exercise
Price for the Shares and the Fair Market Value of the Shares on the date of
exercise. To the extent that Optionee was not entitled to exercise the Option at
the Termination Date, or if Optionee does not exercise such Option to the extent
so entitled within the time specified in this Section 6(b), the Option shall
terminate.

         7.       DEATH OF OPTIONEE. In the event of the death of Optionee (a)
during the Term of this Option and while an Employee or Consultant of the
Company and having been in Continuous Status as an Employee or Consultant since
the date of grant of the Option, or (b) within 30 days after Optionee's
Termination Date, the Option may be exercised at any time within six months
following the date of death (but in no event later than the Expiration Date set
forth in the Notice of Stock Option Grant), by Optionee's estate or by a person
who acquired the right to exercise the Option by bequest or inheritance, but
only to the extent of the right to exercise that had accrued at the Termination
Date.

         8.       NON-TRANSFERABILITY OF OPTION. This Option may not be
transferred in any manner otherwise than by will or by the laws of descent or
distribution and may be exercised during the lifetime of Optionee only by him or
her. The terms of this Option shall be binding upon the executors,
administrators, heirs, successors and assigns of Optionee.

         9.       TERM OF OPTION. This Option may be exercised only within the
Term set forth in the Notice of Stock Option Grant, subject to the limitations
set forth in Section 7 of the Plan.

         10.      TAX CONSEQUENCES. Set forth below is a brief summary as of the
date of this Option of certain of the federal and California tax consequences of
exercise of this Option and disposition of the Shares under the laws in effect
as of the Date of Grant. THIS SUMMARY IS NECESSARILY INCOMPLETE, AND THE TAX
LAWS AND REGULATIONS ARE

                                      -3-
<PAGE>   18
SUBJECT TO CHANGE. OPTIONEE SHOULD CONSULT A TAX ADVISER BEFORE EXERCISING THIS
OPTION OR DISPOSING OF THE SHARES.

                  (a) EXERCISE OF INCENTIVE STOCK OPTION. If this Option
qualifies as an Incentive Stock Option, there will be no regular federal or
California income tax liability upon the exercise of the Option, although the
excess, if any, of the Fair Market Value of the Shares on the date of exercise
over the Exercise Price will be treated as an adjustment to the alternative
minimum tax for federal tax purposes and may subject Optionee to the alternative
minimum tax in the year of exercise.

                  (b) EXERCISE OF NONSTATUTORY STOCK OPTION. If this Option does
not qualify as an Incentive Stock Option, there may be a regular federal income
tax liability and a California income tax liability upon the exercise of the
Option. Optionee will be treated as having received compensation income (taxable
at ordinary income tax rates) equal to the excess, if any, of the Fair Market
Value of the Shares on the date of exercise over the Exercise Price. If Optionee
is an employee, the Company will be required to withhold from Optionee's
compensation or collect from Optionee and pay to the applicable taxing
authorities an amount equal to a percentage of this compensation income at the
time of exercise.

                  (c) DISPOSITION OF SHARES. In the case of a Nonstatutory Stock
Option, if Shares are held for at least one year, any gain realized on
disposition of the Shares will be treated as long-term capital gain for federal
and California income tax purposes. In the case of an Incentive Stock Option, if
Shares transferred pursuant to the Option are held for at least one year after
exercise and are disposed of at least two years after the Date of Grant, any
gain realized on disposition of the Shares will also be treated as long-term
capital gain for federal and California income tax purposes. In either case, the
long-term capital gain will be taxed for federal income tax and alternative
minimum tax purposes at a maximum rate of 28% if the Shares are held more than
one year but less than 18 months after exercise and at 20% if the Shares are
held more than 18 months after exercise. If Shares purchased under an Incentive
Stock Option are disposed of within one year after exercise or within two years
after the Date of Grant, any gain realized on such disposition will be treated
as compensation income (taxable at ordinary income rates) to the extent of the
difference between the Exercise Price and the lesser of (i) the Fair Market
Value of the Shares on the date of exercise, or (ii) the sale price of the
Shares.

                  (d) NOTICE OF DISQUALIFYING DISPOSITION OF INCENTIVE STOCK
OPTION SHARES. If the Option granted to Optionee herein is an Incentive Stock
Option, and if Optionee sells or otherwise disposes of any of the Shares
acquired pursuant to the Incentive Stock Option on or before the later of (i)
the date two years after the Date of Grant, or (ii) the date one year after the
date of exercise, Optionee shall immediately notify the Company in writing of
such disposition. Optionee acknowledges and agrees that he or she may be subject
to income tax withholding by the Company on the compensation income recognized
by Optionee from the early disposition by payment in cash or out of the current
earnings paid to Optionee.

         11.      WITHHOLDING TAX OBLIGATIONS. Optionee understands that, upon
exercising a Nonstatutory Stock Option, he or she will recognize income for tax
purposes in an amount equal

                                      -4-
<PAGE>   19
to the excess of the then Fair Market Value of the Shares over the Exercise
Price. However, the timing of this income recognition may be deferred for up to
six months if Optionee is subject to Section 16 of the Exchange Act. If Optionee
is an employee, the Company will be required to withhold from Optionee's
compensation, or collect from Optionee and pay to the applicable taxing
authorities an amount equal to a percentage of this compensation income.
Additionally, Optionee may at some point be required to satisfy tax withholding
obligations with respect to the disqualifying disposition of an Incentive Stock
Option. Optionee shall satisfy his or her tax withholding obligation arising
upon the exercise of this Option by one or some combination of the following
methods: (a) by cash payment, (b) out of Optionee's current compensation, (c) if
permitted by the Administrator, in its discretion, by surrendering to the
Company Shares which (i) in the case of Shares previously acquired from the
Company, have been owned by Optionee for more than six months on the date of
surrender, and (ii) have a Fair Market Value on the date of surrender equal to
or greater than Optionee's marginal tax rate times the ordinary income
recognized, or (d) by electing to have the Company withhold from the Shares to
be issued upon exercise of the Option that number of Shares having a Fair Market
Value equal to the amount required to be withheld. For this purpose, the Fair
Market Value of the Shares to be withheld shall be determined on the date that
the amount of tax to be withheld is to be determined (the "Tax Date").

         If Optionee is subject to Section 16 of the Exchange Act (an
"Insider"), any surrender of previously owned Shares to satisfy tax withholding
obligations arising upon exercise of this Option must comply with the applicable
provisions of Rule 16b-3 promulgated under the Exchange Act ("Rule 16b-3").

         All elections by Optionee to have Shares withheld to satisfy tax
withholding obligations shall be made in writing in a form acceptable to the
Administrator and shall be subject to the following restrictions:

                  (a) the election must be made on or prior to the applicable
Tax Date;

                  (b) once made, the election shall be irrevocable as to the
particular Shares of the Option as to which the election is made; and

                  (c) all elections shall be subject to the consent or
disapproval of the Administrator.

         12.      MARKET STANDOFF AGREEMENT. In connection with the initial
public offering of the Company's securities and upon request of the Company or
the underwriters managing such underwritten offering of the Company's
securities, Optionee agrees not to sell, make any short sale of, loan, grant any
option for the purchase of, or otherwise dispose of any securities of the
Company (other than those included in the registration) without the prior
written consent of the Company or such underwriters, as the case may be, for
such period of time (not to exceed 180 days) from the effective date of such
registration as may be requested by the Company or such managing underwriters
and to execute an agreement reflecting the foregoing as may be requested by the
underwriters at the time of the Company's initial public offering.

                                      -5-
<PAGE>   20
                            [Signature Page Follows]

                                      -6-
<PAGE>   21
         This Agreement may be executed in two or more counterparts, each of
which shall be deemed an original and all of which together shall constitute one
document.

                                          SYNAPTICS INCORPORATED

                                          By:
                                             ------------------------------
                                             Francis Lee, President
                                          ---------------------------------
                                             (Print name and title)

         OPTIONEE ACKNOWLEDGES AND AGREES THAT THE VESTING OF SHARES PURSUANT TO
THE OPTION HEREOF IS EARNED ONLY BY CONTINUING EMPLOYMENT OR CONSULTANCY AT THE
WILL OF THE COMPANY (NOT THROUGH THE ACT OF BEING HIRED, BEING GRANTED THIS
OPTION OR ACQUIRING SHARES HEREUNDER). OPTIONEE FURTHER ACKNOWLEDGES AND AGREES
THAT NOTHING IN THIS AGREEMENT, NOR IN THE COMPANY'S STOCK OPTION PLAN WHICH IS
INCORPORATED HEREIN BY REFERENCE, SHALL CONFER UPON OPTIONEE ANY RIGHT WITH
RESPECT TO CONTINUATION OF EMPLOYMENT OR CONSULTANCY BY THE COMPANY, NOR SHALL
IT INTERFERE IN ANY WAY WITH OPTIONEE'S RIGHT OR THE COMPANY'S RIGHT TO
TERMINATE OPTIONEE'S EMPLOYMENT OR CONSULTANCY AT ANY TIME, WITH OR WITHOUT
CAUSE.

         Optionee acknowledges receipt of a copy of the Plan and represents that
he or she is familiar with the terms and provisions thereof, and hereby accepts
this Option subject to all of the terms and provisions thereof. Optionee has
reviewed the Plan and this Option in their entirety, has had an opportunity to
obtain the advice of counsel prior to executing this Option and fully
understands all provisions of the Option. Optionee hereby agrees to accept as
binding, conclusive and final all decisions or interpretations of the
Administrator upon any questions arising under the Plan or this Option.

Dated:
      ------------------------------         ------------------------------
                                             ((Optionee))

                                      -7-<PAGE>   1
                                                                    EXHIBIT 10.4

                                                      Adopted: 20 September 2000
                                                      Approved: 10 November 2000

                             SYNAPTICS INCORPORATED

                        2000 UK APPROVED SUB-PLAN TO THE
                  SYNAPTICS INCORPORATED 1996 STOCK OPTION PLAN

In pursuance of its powers under the Synaptics Incorporated 1996 Stock Option
Plan ("the Plan"), the Board of Directors, or a duly appointed committee of the
Board of Directors of Synaptics Incorporated ("the Company") has adopted these
rules for the purposes of operating the Plan with regard to such options which
these rules are expressed to extend at the time when the option is granted.
Unless the context requires otherwise, all expressions used in these rules have
the same meaning as the Plan. The Plan, as supplemented by these rules, is
referred to hereinafter as "the Sub-Plan". For the avoidance of doubt, the terms
of the Plan (insofar as they have not been disapplied by Rule 14 of these rules)
shall form part of the Sub-Plan.

1.       The shares of Common Stock over which options may be granted under the
         Sub-Plan form part of the ordinary share capital (as defined in section
         832(1) Income and Corporation Taxes Act 1988) (ICTA 1988) of the
         Company and must at all times, including the time of grant and the time
         of exercise, comply with the terms of the Plan and comply with the
         requirements of paragraphs 10 - 14 Schedule 9 ICTA 1988.

2.       The companies participating in this Sub-Plan are the Company and all
         companies controlled by the Company within the meaning of Section 840
         ICTA 1988 ("the Subsidiaries") and which have been nominated by the
         Company to participate for the time being in this Sub-Plan.

3.       The shares of Common Stock to be acquired on exercise of the option in
         accordance with the terms of the Sub-Plan will:

         (a)      be fully paid up;

         (b)      be not redeemable;

         (c)      not be subject to any restrictions other than restrictions
                  which attach to all shares of stock of the same class. For the
                  purpose of this clause, the term restrictions includes
                  restrictions which are deemed to attach to the shares under
                  any contract, agreement, arrangement or condition as referred
                  to in paragraph 13 Schedule 9 ICTA 1988.

4.       Synaptics Incorporated has only one class of shares of Common Stock,
         and only the Common Stock is ordinary share capital as defined under
         section 832(1) ICTA 1988.

5.       No option will be granted to an employee or director under this
         Sub-Plan, or where an option has previously been granted no option
         shall be exercised by an option-holder if at that time he has, or any
         time within the preceding 12 months has had, a material interest for
         the purposes of Schedule 9 ICTA 1988 in either the Company being a
         close
<PAGE>   2
         company (within the meaning of Chapter I of Part XI of ICTA 1988) or in
         a company being a close company which has control (within the meaning
         of section 840 ICTA 1988) of the Company or in a company being a close
         company and a member of a consortium (as defined in section 187(7) ICTA
         1988) which owns the Company. In determining whether a company is a
         close company for this purpose section 414(1)(a) ICTA 1988 (exclusion
         of companies not resident in the United Kingdom) and section 415 of
         ICTA 1988 (exclusion of certain companies with listed shares) shall be
         disregarded.

6.       Notwithstanding the provisions of Section 8 of the Plan, no option will
         be granted to an employee or director under this Sub-Plan in relation
         to which the exercise price is manifestly less than the market value
         (as defined in section 187(2) ICTA 1988) of the Company's shares of
         Common Stock on the date of grant of the option mad the exercise price
         shall be stated at the date of the option grant. The market value is to
         be agreed in accordance with the provisions of Part VIII of the
         Taxation of Chargeable Gains Act 1992 and agreed for the purposes of
         the Scheme with the Inland Revenue Shares Valuation Division at the
         date of grant.

7.       (a)      Notwithstanding the provisions of Section 14 of the Plan, any
                  alteration or amendment to the Plan or this Sub-Plan which
                  affects the Sub-Plan shall not have effect until approved by
                  the Board of Inland Revenue. The Company undertakes to provide
                  details thereof to the Board of Inland Revenue without delay
                  for this purpose.

         (b)      Notwithstanding the provisions of Section 11 no adjustment
                  pursuant to any of the provisions of the Plan shall be made to
                  any option which has been granted under the Sub-Plan unless
                  such adjustment would be permitted under the Plan and under
                  the provisions of paragraph 29 of Schedule 9 ICTA 1988 and is
                  necessary to take account of any variation in the share
                  capital of which the Common Stock forms part and where so
                  permitted no such adjustment shall take effect until the
                  approval of the Board of Inland Revenue shall have been
                  obtained thereto.

8.       Notwithstanding anything contained in Section 11 of the Plan, if the
         Company merges or is consolidated with another company under
         circumstances where the Company is not the surviving company, no
         options may be granted under this Sub-Plan following such merger, or
         consolidation.

9.       For the avoidance of doubt it is stated that the Company is the grantor
         as defined in paragraph 1(1) Schedule 9 ICTA 1988.

10.      Any option granted to an employee or director under this Sub-Plan shall
         be limited to take effect so that immediately following such grant the
         aggregate market value (determined at the time prescribed by paragraph
         28 Schedule 9 ICTA 1988 and calculated in accordance with the
         provisions of the said Schedule 9) of shares which he can acquire under
         this Sub-Plan and any other plan or plans, not being a savings-related
         share option scheme, approved under the said Schedule 9 and established
         by the grantor or by any associated company (as defined in section 416
         ICTA 1988) of the grantor (and not exercised) shall not exceed L30,000
         or such other sum as may be prescribed from time to

                                       2
<PAGE>   3
         time by paragraph 28 Schedule 9 ICTA 1988. Provided always that this
         limit shall not exceed the limitations set out in the Plan.

11.      An option will only be granted under this Sub-Plan to any employee
         (other than one who is a director) or a full-time director of the
         Company or a company participating in this Sub-Plan. For this purpose,
         a full-time director is one who is required to work at least 25 hours a
         week excluding meal-times in the business of the Company or its
         subsidiaries.

12.      The Company shall not later than 30 days upon actual receipt of the
         written notice of exercise of an option given in accordance with the
         provisions of the Plan together with the payment of the aggregate
         exercise price in respect of the shares of Common Stock to be issued
         pursuant to the exercise of an option, allot and issue credited as
         fully paid to the Optionee and cause to be registered in his name the
         number of shares of Common Stock specified in the written notice.

13.      When the Board under the powers conferred by Section 4(c)(vi) of the
         Plan determines the terms and conditions of any option granted under
         this Sub-Plan, such terms and conditions shall:

         (i)      be objective, specified at the time of grant and set out in
                  full in or details given with the award; and

         (ii)     be such that rights to exercise such options after the
                  fulfillment or attainment of any terms and conditions so
                  specified shall not be dependent upon the further discretion
                  of any person; and

         (iii)    not be capable of amendment, variation or waiver unless an
                  event occurs which causes the Committee to consider that a
                  waived, varied or amended term and condition would be a fairer
                  measure of performance and would be no more difficult to
                  satisfy.

14.1     The following wording in Section 10 shall be deleted and shall
         therefore be disregarded for the purposes of the Sub-Plan. "At the
         discretion of the Administrator, Optionees may satisfy withholding
         obligations as provided in this paragraph. When an Optionee incurs tax
         liability in applicable tax laws, and the Optionee is obligated to pay
         the Company an amount required to be withheld under applicable tax
         laws, the Optionee may satisfy the withholding tax obligation by one or
         some combination of the following methods: (a) by cash payment, or (b)
         out of Optionee's current compensation, (c) if permitted by the
         Administrator, in its discretion, by surrendering to the Company Shares
         that (i) in the case of Shares previously acquired from the Company,
         have been owned by the Optionee for more than six months on the date of
         surrender, and (ii) have a fair market value on the date of surrender
         equal to or less than Optionee's marginal tax rates times the ordinary
         income recognized, or (d) by electing to have the Company withhold from
         the Shares to be issued upon exercise of the Option, if any, that
         number of Shares having a fair market value equal to the amount
         required to be withheld. For this purpose, the fair market value

                                       3
<PAGE>   4
         of the Shares to be withheld shall be determined on the date that the
         amount of tax to be withheld is to be determined (the "Tax Date").

14.2     The above wording is replaced with the following for the purposes of
         the Sub-Plan:

         "The Optionee is obligated to satisfy the withholding obligations as
         provided in this paragraph. When an Optionee incurs tax liability in
         connection with an Option, which tax liability is subject to tax
         withholding under applicable tax laws, the Optionee will satisfy the
         withholding tax obligation by one or some combination of the following
         methods: (a) by cash payment, or (b) out of Optionee's current
         compensation.

15.      The following, namely:

         (a)      all references in the Plan to "Incentive Stock Options;

         (b)      all payment forms in Section 8(b) other than cash, cheque or
                  delivery of a properly executed exercise notice together with
                  such other documentation as the Administrator and the broker,
                  if applicable, shall require to effect an exercise of the
                  Option and delivery to the Company of the sale or loan
                  proceeds required to pay the exercise price and any applicable
                  income or employment taxes;

         (c)      Section 4 (c)(vii) allowing options to be settled in cash;

         (d)      Section 4 (c)(viii) allowing the amendment of the exercise
                  price;

         (e)      Section 4 (c)(x) allowing discretion to modify granted
                  options;

         (f)      Section 9(f) providing for Buyout Provisions;

                  shall be deleted and shall therefore be disregarded for the
                  purposes of the Sub-Plan.

16.      The first sentence of Section 5(a) shall be amended to read as follows:

         "Nonstatutory Stock Options may be granted to Employees."

17.      Section 8 (a)(ii)(B) shall be amended to read as follows:

         "granted to any person, the per Share exercise price shall be no less
         than the market value per Share on the date of grant as agreed in
         advance with the Inland Revenue in accordance with Rule 6 of the
         Sub-Plan."

Adopted on behalf of the Company by:      /s/ Francis Lee
                                    --------------------------------------------
Position of signatory: CEO
                      -------------------------------------------
Date:                  Nov 10, 2000
                      -------------------------------------------

                                       4
<PAGE>   5
                                   APPENDIX IV

                             SYNAPTICS INCORPORATED

                             STOCK OPTION AGREEMENT

                            2000 UK APPROVED SUB-PLAN
                                     to the
                  SYNAPTICS INCORPORATED 1996 STOCK OPTION PLAN

You are granted effective as of .........................., options (the
"Options") to purchase shares of common stock, zero par value, of Synaptics
Incorporated (the "Option Shares") pursuant to the Synaptics Incorporated 1996
Stock Option Plan (the "Plan") of Synaptics Incorporated (the "Company") as
amended by the 2000 UK Approved Sub-Plan referred to hereinafter as the
"Sub-Plan". The Options are subject to the terms and conditions set forth below
and in the Sub-Plan rules, which are attached to and made a part of this Stock
Option Agreement (the "Agreement"). Capitalised terms used in the Agreement have
the same meaning as defined in the Sub-Plan.

1 Exercise Price: $ ............. per Option Share, being the market value of
the stock at the date of the grant.

         (a)   Number of Option Shares: ...........................

         (b)   Exercise:   Options may be exercised at 25% on the twelve (12)
                           month anniversary of the Vesting Commencement Date
                           (as specified below) and 1/48th of the total number
                           of Option Shares on each monthly anniversary
                           thereafter, except in circumstances as defined in the
                           Plan.

         (c)   Vesting Commencement Date  ...........................

2 Exercise of Option: Exercise must be made by delivery to the Company at its
principal executive office of a notice signed by the Optionee that states the
number of shares to be purchased and is accompanied by payment of the Exercise
Price for the shares to be purchased in substantially the form attached hereto
as Exhibit B.

3 Registration under Federal and State Securities Laws: These Options may not be
exercised and the Company is not required to deliver shares of Common Stock
unless such shares have been registered under Federal and applicable state
security laws, or are then exempt from such registration requirements.
<PAGE>   6
4 Transferability of Options: These Options are not transferable except that on
the death of the Optionee, the Option may be transferred to the Optionee's legal
representative and exercised within six months from the date of death.

5 Market Standoff Agreement: In the event of an initial public offering of the
Company's shares and upon the request of the Company (or the underwriters
managing such underwritten offering of the Company's shares), you are obliged
not to sell, make any short sale of, loan, grant any option for the purchase of,
or otherwise dispose of any shares of the Company (other than those included in
the registration) without the prior written consent of the Company or such
underwriters, as the case may be, for such period of time (not to exceed 180
days) from the effective date of such registration as may be requested by the
Company (or such managing underwriters) and to execute an agreement reflecting
the foregoing as may be requested by the underwriters at the time of the
Company's initial public offer.

6 Expiration Date: The Options expire 90 days after termination of employment
except if the Optionee terminates employment by reason of death or total and
permanent disability, when the Option expires six months and twelve months (six
months in the event of a disability that is not total and permanent)
respectively after termination of employment. Subject to earlier termination as
provided in this Agreement, the Options expire on the tenth anniversary of the
date of grant, unless earlier exercised.

7 Taxation: No income tax will be payable when you exercise the Option provided
the Sub-Plan is still approved by the Inland Revenue and:-

  (a)      at least three years and no more than ten years have elapsed
           from the Option Grant Date; and

  (b)      at least three years have elapsed since the date on which you
           last exercised an option obtained under an approved scheme
           (except a savings-related scheme) for which income tax relief
           was given.

The Company by its duly-authorised officer agrees to the Terms and Conditions of
the Agreement and of the Sub-Plan.

SYNAPTICS INCORPORATED

By:
   -------------------------------
<PAGE>   7
The Optionee accepts the Option subject to the terms and conditions of the
Sub-Plan and this Agreement.

   -------------------------------
Optionee
<PAGE>   8
                                   APPENDIX V

                                    EXHIBIT B

                             SYNAPTICS INCORPORATED

                           STOCK OPTION EXERCISE FORM

                            2000 UK APPROVED SUB-PLAN
                                     to the
                  SYNAPTICS INCORPORATED 1996 STOCK OPTION PLAN

Corporate Secretary
Synaptics Incorporated
[Head Office Address]

Dear

I hereby exercise [    ] of my options dated [    ] (the "Shares"), having an
exercise price of $[ ] per share. Attached hereto is a cheque in payment of the
exercise price in the amount of $[    ].

I acknowledge and agree that I shall be required to comply with the attached
schedule detailing the relevant US securities laws for private companies. I
further acknowledge and agree that these are not specific restrictions to
employee shareholders and apply to all shares in the Company.

Thank you for your assistance.

Yours sincerely,

[Purchaser]
<PAGE>   9
US SECURITIES LAWS

1        MARKET STANDOFF AGREEMENT

         In connection with the initial public offering of the Company's
         securities and upon request of the Company or the underwriters managing
         such underwritten offering of the Company's securities, Purchaser
         agrees not to sell, make any short sale of, loan, grant any option for
         the purchase of, or otherwise dispose of any securities of the Company
         (other than those included in the registration) without the prior
         written consent of the Company or such underwriters, as the case may
         be, for such period of time (not to exceed 180 days) from the effective
         date of such registration as may be requested by the Company or such
         managing underwriters and to execute an agreement reflecting the
         foregoing as may be requested by the underwriters at the time of the
         Company's initial public offering.

2        INVESTMENT AND TAXATION REPRESENTATIONS

         In connection with the purchase of the Shares, Purchaser represents to
         the Company the following:

         (a)               Purchaser is aware of the Company's business affairs
                  and financial condition and has acquired sufficient
                  information about the Company to reach an informed and
                  knowledgeable decision to acquire the Shares. Purchaser is
                  purchasing the Shares for investment for his or her own
                  account only and not with a view to, or for resale in
                  connection with, any "distribution" thereof within the meaning
                  of the Securities Act of 1933 (the "Securities Act").

         (b)               Purchaser understands that the Shares have not been
                  registered under the Securities Act by reason of a specific
                  exemption therefrom, which exemptions depends upon, among
                  other things, the bona fide nature of Purchaser's investment
                  intent as expressed herein.

         (c)               Purchaser understands that the Shares are "restricted
                  securities" under applicable US federal and state securities
                  laws and that, pursuant to these laws, Purchaser must hold the
                  Shares indefinitely unless they are registered with the
                  Securities and Exchange Commission and qualified by state
                  authorities, or an exemption from such registration and
                  qualification requirements is available. Purchaser
                  acknowledges that the Company has no obligation to register or
                  qualify the Shares for resale. Purchaser further acknowledges
                  that if an exemption from registration or qualification is
                  available, it may be conditioned on various requirements
                  including, but not limited to, the time and manner of sale,
                  the holding period for the Shares, and requirements relating
                  to the Company which

                                      -2-
<PAGE>   10
                  are outside of the Purchaser's control, and which the Company
                  is under no obligation and may not be able to satisfy.

         (d)               Purchaser understands that Purchaser may suffer
                  adverse tax consequences as a result of Purchaser's purchase
                  or disposition of the Shares. Purchaser represents that
                  Purchaser has consulted any tax consultants Purchaser deems
                  advisable in connection with the purchase or disposition of
                  the Shares and that Purchaser is not relying on the Company
                  for any tax advice.

3        RESTRICTIVE LEGENDS AND STOP-TRANSFER ORDERS

         (a)      LEGENDS           The certificate or certificates representing
                  the Shares shall bear the following legends (as well as any
                  legends required by applicable state and federal corporate and
                  securities laws):

                  (i)               The shares represented by this certificate
                           have not been registered under the Securities Act of
                           1933, and have been acquired for investment and not
                           with a view to, or in connection with, the sale or
                           distribution thereof. No such sale or distribution
                           may be effected without an effective registration
                           statement related thereto or an opinion of counsel in
                           a form satisfactory to the company that such
                           registration is not required under the Securities Act
                           of 1933.

                  (ii)              The shares represented by this certificate
                           may be transferred only in accordance with the terms
                           of tm agreement between the company and the
                           shareholder, a copy of which is on file with the
                           Secretary of the company.

         (b)      STOP-TRANSFER NOTICES      Purchaser agrees that, in order to
                  ensure compliance with the restrictions referred to herein,
                  the Company may issue appropriate "stop transfer" instructions
                  to its transfer agent, if any, and that, if the Company
                  transfers its own securities, it may make appropriate
                  notations to the same effect in its own records.

         (c)      REFUSAL TO TRANSFER        The Company shall not be required
                  (i) to transfer on its books any Shares that have been sold or
                  otherwise transferred in violation of any of the provisions of
                  this Agreement or (ii) to treat as owner of such Shares or to
                  accord the right to vote or pay dividends to any purchaser or
                  other transferee to whom such Shares shall have been so
                  transferred.

         (d)      REMOVAL OF LEGEND          The Shares then held by Purchaser
                  will no longer be subject to the legend referred to in Section
                  3(a)(ii) following the expiration or termination of the market
                  standoff provisions of Section 1 (and of any agreement entered
                  pursuant to Section 1). After such time, and upon Purchaser's
                  request, a new certificate or certificates representing the
                  Shares not repurchased shall be

                                      -3-
<PAGE>   11
                  issued without the legend referred to in Section 3(a)(ii), and
                  delivered to Purchaser.

4        NO EMPLOYMENT RIGHTS

         Nothing in this Agreement shall affect in may manner whatsoever the
         right or power of the Company, or a Parent or Subsidiary of the
         Company, to terminate Purchaser's employment or consulting
         relationship, for any reason, with or without cause.

                                      -4-

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