Document:

Prepared by R.R. Donnelley Financial -- Settlement Agreement and Release

  
 Exhibit 10.4 
  
 SETTLEMENT AGREEMENT AND RELEASE 
  
 This
Settlement Agreement and Release (“Agreement”) is made by and between Genesis Microchip, Inc. (including any company or organization that Genesis Microchip, Inc. has acquired in the past and any subsidiary or affiliate of Genesis
Microchip, Inc.) (the “Company”), and Amnon Fisher (“Employee”). 
  
 WHEREAS, Employee was
employed by the Company; 
  
 WHEREAS, the Company and Employee have entered into a Confidentiality and Property
Rights Agreement, dated January 31, 2000 (the “Confidentiality Agreement”); 
  
 WHEREAS, the Company and
Employee have entered into an Indemnification Agreement, dated October 28, 2001 (the “Indemnification Agreement”); 
  
 WHEREAS, the Company and Employee have mutually agreed to terminate the employment relationship and Employee has agreed to release the Company from any claims arising from or related to the employment relationship;

  
 WHEREAS, the Company and Employee entered into a Stock Option Agreement granting Employee, as of February 1,
2000, the option to purchase Two Hundred Thousand (200,000) shares of the Company’s common stock subject to the terms and conditions of the Company’s 1997 Employee Stock Option Plan and the Stock Option Agreement (the “1997 Stock
Option Agreement”); 
  
 WHEREAS, the Company and Employee entered into Stock Option Agreements granting
Employee, as of February 1, 2000, the option to purchase Two Hundred Thousand (200,000) shares of the Company’s common stock and, as of December 6, 2000, the option to purchase Twenty Five Thousand (25,000) shares of the Company’s common
stock, subject to the terms and conditions of the Company’s 2000 Nonstatutory Stock Option Plan, and the Stock Option Agreements (the “2000 Stock Option Agreements”); and 
  
 WHEREAS, the Company and Employee entered into a Stock Option Agreement granting Employee, as of January 2, 2001, the option to purchase One Hundred Fifty Thousand
(150,000) shares of the Company’s common stock, subject to the terms and conditions of the Company’s 2001 Nonstatutory Stock Option Plan and the Stock Option Agreement (the “2001 Stock Option Agreement”)(the 1997 Stock Option
Agreement, the 2000 Stock Option Agreements and the 2001 Stock Option Agreement are collectively referred to herein as the “Stock Option Agreements” and the 1997 Employee Stock Option Plan, the 2000 Nonstatutory Stock Option Plan and the
2001 Nonstatutory Stock Option Plan are collectively referred to herein as the “Stock Plans”). 
  
 NOW THEREFORE, in consideration of the mutual promises made herein, the Company and Employee (collectively referred to herein as the “Parties”) hereby agree as follows: 
 

  
 1.  Resignation.    Employee hereby resigns
from his position as the Company’s Chief Executive Officer and President and any or all other positions that may have at any time been held by Employee with the Company, and his position as a member of the Company’s Board of Directors,
effective June 25, 2002 (the “Resignation Date”). 
  
 2.  Consideration. 

 
 (a)  Severance Payment.    As consideration for the release of claims as
set forth herein, the Company agrees to pay Employee severance in a lump sum equal to his base salary, less applicable withholding, for one year (the “Severance Payment”). The Severance Payment shall be made to Employee within ten days
after the Effective Date of this Agreement. Except as specifically set forth herein, as of the Resignation Date Employee will not be entitled to accrual of any employee benefits, including, but not limited to, vacation benefits or bonuses.

  
 (b)  Health Insurance Benefits.    As additional
consideration for the release of claims as set forth herein, should Employee timely elect and pay for COBRA coverage, the Company shall reimburse Employee for twelve months of COBRA payments. The Company will also reimburse Employee for the cost of
one year of term life insurance for a maximum coverage amount of $500,000. 
  
 (c)  Stock Options. 
  
 i.  Additional
Vesting.    As additional consideration for the release of claims as set forth herein, the Company agrees to give Employee the opportunity to earn up to a maximum of twelve months of additional vesting on Employee’s
outstanding options to purchase Company common stock (the “Options) represented by the Stock Option Agreements, subject to certain restrictions. The Compensation Committee of the Company’s Board of Directors (the “Committee”)
will meet with Employee on a rolling basis every two months, commencing two months after June 30, 2002 and ending one year from June 30, 2002. Employee agrees to make himself reasonably available to meet with the Committee at a mutually agreed upon
time and place, at which time Employee will provide information regarding communications, if any, he has had regarding the Company in the prior two-month period (the “Review Period”)). The Committee agrees to meet with Employee every two
months, on a date no later than thirty (30) days after the last day of the second month of the applicable Review Period in order to assess Employee’s communications, if any, regarding the Company during such period. If the Committee determines
in its sole and absolute discretion that Employee’s communications, if any, regarding the Company are acceptable, two months of the Options will vest and become exercisable as if Employee had continued providing services to the Company for such
two-month Review Period and Employee will be eligible to continue to earn additional vesting in two-month increments. If during the initial Review Period or at any time thereafter, the Committee determines that Employee’s communications
regarding the Company are not acceptable, there will be no additional vesting and all future 
 

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 opportunities for additional vesting of the Options will be permanently forfeited, including any opportunity for
accelerated vesting provided for pursuant to Paragraph 1(c)(ii) below. Unless the Committee and Employee agree to an alternate meeting date after a Review Period, if the Committee fails to meet with Employee on a date no later than thirty (30) days
after the last day of the second month of the Review Period due to the Committee’s failure to propose a meeting date, two months of the Options will vest and become exercisable as if Employee had continued providing services to the Company.
However, upon the request of the Committee, Employee agrees that he shall nonetheless make himself reasonably available to meet with the Committee at a mutually agreed upon time and place, at which time Employee will provide information regarding
communications, if any, he has had regarding the Company in the preceding Review Period so that the Committee may assess Employee’s communications. 
  
 ii.  Change of Control.    In the event of a sale or merger of the Company in which the Company’s shareholders do
not control more than fifty percent (50%) of the voting equity following such sale or merger, occurring within twelve (12) months of the Effective Date of this Agreement and assuming that the Committee has not determined that Employee’s
communications regarding the Company are not acceptable, under Paragraph 1(c)(i), the remaining portion of the Options eligible for additional vesting pursuant to Paragraph 1(c)(i), if any, shall immediately vest and become exercisable without
further Committee meetings to determine the acceptability of Employee’s communications related to the Company. In no event shall Paragraphs 1(c)(i) and 1(c)(ii), individually or read in combination with one another, be construed to provide more
than a maximum of twelve (12) months of additional vesting in the Options beyond the number of shares vested as of the Resignation Date. 
  
 iii.  Exercisability of Vested Options.    Employee’s period to exercise his Options, to the extent vested, shall be extended to July 30, 2003. The terms of
the existing Stock Option Agreements and Stock Plan shall continue to govern all other aspects of Employee’s exercise and vesting of Options, and if applicable, the Company’s right to repurchase any common stock issued pursuant to such
Options. 
  
 (d)  Attorneys’ Fees.    The Company agrees to
reimburse Employee for legal fees and costs incurred by Employee in connection with the preparation of this Agreement up to a maximum amount of Ten Thousand Dollars ($10,000), less applicable withholdings at the supplemental withholding rates (the
“Attorneys’ Fees Payment”). The Attorneys’ Fees Payment shall be made by the Company to Employee in a lump sum, less applicable withholdings at the supplemental withholding rates, within ten (10) days of Employee’s provision
to the Company of documentation substantiating his payments for legal fees and costs in connection with the preparation of this Agreement. 
 

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 3.  Benefits.    Employee’s health
insurance benefits with the Company will cease on June 30, 2002, subject to the benefits described in paragraph 1(b), and subject to Employee’s right to continue his health insurance coverage under COBRA after expiration of the benefits
described in paragraph 1(b). All other benefits and incidents of employment ceased on the Resignation Date. 
  
 4.  Trade Secrets and Confidential Information/Company Property.    Employee reaffirms and agrees to observe and abide by the terms of the Confidentiality Agreement. Employee’s signature
below constitutes his certification under penalty of perjury that he has returned all documents and other items provided to Employee by the Company, developed or obtained by Employee as a result of his employment or service on the Board of
Directors, or otherwise belonging to the Company, except as otherwise provided herein. 
  
 5.  Payment
of Compensation.    Employee acknowledges and represents that the Company has paid all salary, wages, bonuses, accrued vacation, housing allowances, relocations costs, interest, severance, outplacement costs, fees, stock,
stock options, vesting, commissions and any and all other benefits and compensation due to Employee, once the above referenced payments and benefits are provided. Employee has thirty (30) days from the Resignation Date to file any remaining expense
reports and the Company shall have two (2) weeks from the date of receipt of such expense reports to make any appropriate reimbursements to Employee, pursuant to the Company’s regular policies and practices related to expense reimbursement.

  
 6.  Release of Claims.    Employee agrees that the foregoing consideration
represents settlement in full of all outstanding obligations owed to Employee by the Company and its current and former officers, directors, employees, agents, investors, attorneys, shareholders, administrators, affiliates, divisions, subsidiaries,
predecessor and successor corporations and assigns (the “Releasees”). Employee hereby and forever releases the Releasees from, and agrees not to sue concerning, or in any manner to institute, prosecute or pursue, any claim, complaint,
charge, duty, obligation or cause of action relating to any matters of any kind, whether presently known or unknown, suspected or unsuspected, that Employee may possess against any of the Releasees arising from any omissions, acts or facts that have
occurred up until and including the date Employee signs this Agreement including, without limitation, 
  
 (a)  any and all claims relating to or arising out of Employee’s employment relationship with the Company and the termination of that relationship; 
  
 (b)  any and all claims relating to, or arising from, Employee’s right to purchase, or actual purchase of shares of stock of the Company,
including, without limitation, any claims for fraud; misrepresentation; breach of fiduciary duty; breach of duty under applicable state corporate law; and securities fraud under any state or federal law; 
  
 (c)  any and all claims under the law of any jurisdiction including, but not limited to, wrongful discharge of
employment; termination in violation of public policy; discrimination; harassment; retaliation; breach of contract, both express and implied; breach of a covenant of good faith and fair dealing, both express and implied; promissory estoppel;
negligent or intentional infliction of emotional distress; negligent or intentional misrepresentation; negligent or intentional interference with contract or prospective economic advantage; unfair business practices; defamation; 

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 libel; slander; negligence; personal injury; assault; battery; invasion of privacy; false imprisonment; conversion;
workers’ compensation; and disability benefits; 
  
 (d)  any and all claims for
violation of any federal, state or municipal statute, including, but not limited to, Title VII of the Civil Rights Act of 1964; the Civil Rights Act of 1991; the Americans with Disabilities Act of 1990; the Fair Labor Standards Act; the Fair Credit
Reporting Act; the Age Discrimination in Employment Act of 1967; the Employee Retirement Income Security Act of 1974; the Worker Adjustment and Restraining Notification Act; the Family and Medical Leave Act; the California Family Rights Act; the
California Fair Employment and Housing Act, and the California Labor Code; 
  
 (e)  any and
all claims for violation of the federal, or any state, constitution; 
  
 (f)  any and all
claims arising out of any other laws and regulations relating to employment or employment discrimination; 
  
 (g)  any and all claims for attorneys’ fees and costs; and 
  
 (h)  any claim for any loss, cost, damage, or expense arising out of any dispute over the non-withholding or other tax treatment of any of the proceeds received by Employee as a result of this Agreement. 

 
 Employee acknowledges and agrees that any breach by him of this paragraph or of his obligations under paragraphs 8, 10 or 13
hereof or of any provision of the Confidentiality Agreement, as determined by a court of competent jurisdiction or through binding arbitration proceedings as set forth in Paragraph 16, shall constitute a material breach of this Agreement, and shall
entitle the Company immediately to recover the consideration provided to Employee by this Agreement, except as provided by law. Except as provided by law, Employee shall also be responsible to the Company for all costs, attorneys’ fees and any
and all damages incurred by the Company in: (a) enforcing his obligations under this paragraph, paragraphs 8, 10 and 13 and the Confidentiality Agreement, including the bringing of any action to recover the consideration, and (b) defending against a
claim brought or pursued by Employee in violation of the terms of this Agreement. 
  
 Employee agrees that the
release set forth in this section shall be and remain in effect in all respects as a complete general release as to the matters released. This release does not extend to any obligations incurred under this Agreement, including any obligations the
Company may have to indemnify Employee as a former officer and director of the Company, pursuant to the Indemnification Agreement and/or statutory obligations. 
  
 7.  Acknowledgment of Waiver of Claims under ADEA.    Employee acknowledges that he is waiving and releasing any rights he may have under the Age Discrimination in
Employment Act of 1967 (“ADEA”) and that this waiver and release is knowing and voluntary. Employee and the Company agree that this waiver and release does not apply to any rights or claims that may arise under ADEA after the Effective
Date of this Agreement. Employee acknowledges that the consideration given for this waiver and release Agreement is in addition to anything of value to 
 

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 which Employee was already entitled. Employee further acknowledges that he has been advised by this writing that (a) he should consult with an
attorney prior to executing this Agreement; (b) he has at least twenty-one (21) days within which to consider this Agreement; (c) he has at least seven (7) days following the execution of this Agreement by the parties to revoke the Agreement;
(d) this Agreement, and all of the terms and conditions hereof, shall not be effective until the revocation period has expired; and (e) nothing in this Agreement prevents or precludes Employee from challenging or seeking a determination in good
faith of the validity of this waiver under the ADEA, nor does it impose any condition precedent, penalties or costs from doing so, unless specifically authorized by law. 
  
 8.  Civil Code Section 1542.    The Parties represent that they are not aware of any claim by either of them other than the claims that
are released by this Agreement. Employee and the Company acknowledge that they have been advised by legal counsel and are familiar with the provisions of California Civil Code Section 1542, which provides as follows: 
  
 A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE
RELEASE, WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR. 
  
 Employee and the
Company, being aware of said code section, agree to expressly waive any rights they may have thereunder, as well as under any other statute or common law principles of similar effect. 
  
 9.  No Pending or Future Lawsuits.    Employee represents that he has no lawsuits, claims, or actions pending in his name, or on behalf
of any other person or entity, against the Company, its officers, directors, employees, investors, shareholders, or any other person or entity referred to herein. Employee also represents that he does not intend to bring any claims on his own behalf
or on behalf of any other person or entity against the Company, its officers, directors, employees, investors, shareholders, or any other person or entity referred to herein. 
  
 10.  Non-Disparagement.    Employee agrees to refrain from any defamation, libel or slander of the Company or its officers, directors,
employees, investors, shareholders, administrators, affiliates, divisions, subsidiaries, predecessor and successor corporations, and assigns or tortious interference with the contracts and relationships of the Company or its officers, directors,
employees, investors, shareholders, administrators, affiliates, divisions, subsidiaries, predecessor and successor corporations, and assigns. All inquiries by potential future employers of Employee will be directed to the Company’s Vice
President of Human Resources if there shall be one, and otherwise to its President. Upon inquiry by potential future employers of Employee, the Company shall only state the following: Employee’s last position and dates of employment.

  
 11.  Application for Employment.    Employee understands and agrees that, as
a condition of this Agreement, he shall not be entitled to any employment with the Company, and he hereby waives 
 

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 any right, or alleged right, of employment or re-employment with the Company. Employee further agrees that he will not apply for employment with
the Company. 
  
 12.  Confidentiality.    Employee agrees to maintain in
complete confidence the contents and terms of this Agreement and the consideration for this Agreement (hereinafter collectively referred to as “Separation Information”) until such time as, and to the extent that, the Separation Information
is publicly disclosed by the Company in a filing with the SEC or otherwise. Except as required by law, Employee may disclose Separation Information only to his immediate family members, the Court in any proceedings to enforce the terms of this
Agreement, Employee’s legal counsel, his accountant and any professional tax advisor to the extent that they need to know the Separation Information in order to provide advice on tax treatment or to prepare tax returns, and shall take every
reasonable precaution to prevent disclosure of any Separation Information to all other third parties. Employee agrees that he will not publicize, directly or indirectly, any Separation Information. 
  
 13.  No Cooperation.    Employee agrees that he will not act in any manner that might damage the
business of the Company. The Parties acknowledge that Employee’s employment with any of the Company’s competitors shall not, in and of itself, constitute a breach of this provision. Employee further agrees that he will not knowingly
counsel or assist any attorneys or their clients in the presentation or prosecution of any disputes, differences, grievances, claims, charges, or complaints by any third party against any of the Releasees, unless under a subpoena or other court
order to do so. Employee agrees both to immediately notify the Company upon receipt of any such subpoena or court order, and to furnish, within three (3) business days of its receipt, a copy of such subpoena or court order to the Company. If
approached by anyone for counsel or assistance in the presentation or prosecution of any disputes, differences, grievances, claims, charges, or complaints against any of the Releasees, Employee shall state no more than that he cannot provide counsel
or assistance. 
  
 14.  No Admission of Liability.    Employee understands and
acknowledges that this Agreement constitutes a compromise and settlement of any and all potential disputed claims. No action taken by the Company hereto, either previously or in connection with this Agreement, shall be deemed or construed to be: (a)
an admission of the truth or falsity of any potential claims; or (b) an acknowledgment or admission by the Company of any fault or liability whatsoever to Employee or to any third party. 
  
 15.  Non-Solicitation.    Employee agrees that for a period of twelve (12) months immediately following the Effective Date of this
Agreement, Employee shall not either directly or indirectly solicit, induce, recruit or encourage any of the Company’s employees or consultants to leave their employment or service relationship, or attempt to do so, either for himself or any
other person or entity. 
  
 16.  Arbitration.    The Parties agree that any and
all disputes arising out of the terms of this Agreement, their interpretation, and any of the matters herein released, shall be subject to binding arbitration in Santa Clara County before the American Arbitration Association under its National Rules
for the Resolution of Employment Disputes. The Parties agree that the prevailing party in any arbitration shall be entitled to injunctive relief in any court of competent jurisdiction to enforce the arbitration award. The Parties agree that the
prevailing party in any arbitration shall be awarded its reasonable attorneys’ fees and costs. The Parties hereby agree to waive their right to have any 
 

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 dispute between them resolved in a court of law by a judge or jury. This paragraph will not
prevent either party from seeking injunctive relief (or any other provisional remedy) from any court having jurisdiction over the Parties and the subject matter of their dispute relating to Employee’s obligations under this Agreement and the
Confidentiality Agreement. 
  
 17.  No Knowledge of Wrongdoing.    Employee
represents that he has no knowledge of any wrongdoing involving improper or false claims against a federal or state governmental agency, or any other wrongdoing that involves Employee or other present or former Company employees. 

 
 18.  Authority.    The Company represents and warrants that the undersigned has the
authority to act on behalf of the Company and to bind the Company and all who may claim through it to the terms and conditions of this Agreement. Employee represents and warrants that he has the capacity to act on his own behalf and on behalf of all
who might claim through him to bind them to the terms and conditions of this Agreement. Each Party warrants and represents that there are no liens or claims of lien or assignments in law or equity or otherwise of or against any of the claims or
causes of action released herein. 
  
 19.  No Representations.    Employee
represents that he has consulted with an attorney, and has carefully read and understands the scope and effect of the provisions of this Agreement. Employee has not relied upon any representations or statements made by the Company which are not
specifically set forth in this Agreement. 
  
 20.  Severability.    In the event
that any provision or any portion of any provision hereof becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable or void, this Agreement shall continue in full force and effect without said provision or portion of
provision. 
  
 21.  Attorneys’ Fees.    Except as provided in paragraph 6
hereof, in the event that either Party brings an action to enforce or effect its rights under this Agreement, the prevailing party shall be entitled to recover its costs and expenses, including the costs of mediation, arbitration, litigation, court
fees, plus reasonable attorneys’ fees, incurred in connection with such an action. 
  
 22.  Indemnification.    The Company agrees that it will not exercise its right to terminate the Indemnification Agreement with Employee as provided in Section 11 therein. The Company will provide
Employee indemnification pursuant to the Indemnification Agreement and the Company’s Certificate of Incorporation and Bylaws, to the fullest extent authorized or permitted by law. The Company further agrees that with respect to the period of
time in which Employee was an officer or director of the Company, Employee shall continue to be covered by any Director and Officer insurance policies that the Company may have in place from time to time. 
  
 22.  Entire Agreement.    This Agreement represents the entire agreement and understanding between
the Company and Employee concerning Employee’s employment with and separation from the Company and the events leading thereto and associated therewith, and supersedes and replaces any and all prior agreements, offer letters, and understandings
concerning Employee’s relationship with the Company, with the exception of the Confidentiality Agreement, the Indemnification Agreement, the Stock Plans and the Stock Option Agreements. 
 

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 23.  No Oral Modification.    This Agreement
may only be amended in writing signed by Employee and the Company’s then current Chief Executive Officer. 
  
 24.  No Waiver.    The failure of the Company to insist upon the performance of any of the terms and conditions in this Agreement, or the failure to prosecute any breach of any of the terms and
conditions of this Agreement, shall not be construed thereafter as a waiver of any such terms or conditions. This entire Agreement shall remain in full force and effect as if no such forbearance or failure of performance had occurred. 

 
 25.  Governing Law.    This Agreement shall be governed by the laws of the State of
California, without regard for choice of law provisions. 
  
 26.  Effective
Date.    This Agreement will become effective after it has been signed by both Parties and after seven days have passed since Employee signed the Agreement (the “Effective Date”). Employee has seven days after he
signs the Agreement to revoke it. 
  
 27.  Counterparts.    This Agreement may
be executed in counterparts and by facsimile, and each counterpart and facsimile shall have the same force and effect as an original and shall constitute an effective, binding agreement on the part of each of the undersigned. 

 
 28.  Survival of the Agreement.    This Agreement shall not be terminated by any
dissolution of the Company resulting from either a merger or consolidation, in which the Company is not the surviving or consolidated corporation, or a transfer of all or substantially all of the assets of the Company. If either event described in
this Paragraph 28 occurs, the rights, benefits, and obligations set forth in this Agreement shall automatically be assigned to the surviving or resulting corporation or to the transferee of the assets. 
  
 29.  Voluntary Execution of Agreement.    This Agreement is executed voluntarily and without any
duress or undue influence on the part or behalf of the Parties hereto, with the full intent of releasing all claims. The Parties acknowledge that: 
  
 (a)  They have read this Agreement; 
  
 (b)  They have been represented in the preparation, negotiation, and execution of this Agreement by legal counsel of their own choice; 
  

(c)  They understand the terms and consequences of this Agreement and of the releases it contains; 
  
 (d)  They are fully aware of the legal and binding effect of this Agreement. 
 

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 IN WITNESS WHEREOF, the Parties have executed this Agreement on the respective
dates set forth below. 
  
 
	 AMNON FISHER, an individual
 
	 
	 

	 Amnon Fisher
 

 
  
 Dated: 
  
 
	 GENESIS MICROCHIP, INC.
 
	 
	 By:
 	 	 

	  	 	 James L. Donegan
 Interim Chief
Executive Officer
 

 
  
 Dated: 
 

 10<PAGE>

                                                                    Exhibit 10.1

                STOCK REPURCHASE AND NOTE CANCELLATION AGREEMENT

         This Stock Repurchase and Note Cancellation Agreement (the "Agreement")
is made and entered into as of April 29th, 2002 (the "Effective Date") by and
between Lexar Media, Inc., a Delaware corporation (the "Company"), and Eric
Stang ("Seller").

                                 R E C I T A L S

         WHEREAS, Seller has previously delivered to the Company a promissory
note dated November 30, 1999 in the principal amount of $400,000 (the "Note") in
connection with the purchase of 800,000 shares of common stock of the Company
(the "Stock");

         WHEREAS, as of the Effective Date, the obligation of Seller to the
Company pursuant to the Note (including outstanding and unpaid principal and
interest) is $458,701.15 (the "Loan Obligation");

         WHEREAS, the Loan Obligation is secured by a pledge of the Stock to the
Company pursuant to a Stock Pledge Agreement by and between Seller and the
Company (the "Stock Pledge Agreement");

         WHEREAS, the terms of the Note and the Stock Pledge Agreement, each as
amended, provide that a portion of the Stock may be released from the security
interest granted under the Stock Pledge Agreement upon partial repayment of the
Loan Obligation; and

         WHEREAS, the Seller wishes to sell 147,493 shares of the Stock to the
Company (the "Shares") in exchange for satisfaction and cancellation of
indebtedness due under the Note, and the Company wishes to purchase the Shares
from Seller.

         NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS:

         1.       Purchase and Sale of Shares.

                  1.1 Purchase. Subject to the terms and conditions set forth
herein, effective upon the Effective Date, Seller hereby sells, transfers,
assigns and delivers to the Company, and the Company purchases from Seller, the
Shares free and clear of all liens, encumbrances, security interests, equities,
claims, options, licenses, charges and assessments, for a purchase price per
share equal to $3.11, which is equal to the closing price of the Company's
common stock as of the Effective Date, and a total purchase price equal to
$458,703.23 (the "Purchase Price"). Concurrently herewith, Seller shall deliver
to the Company all stock certificates representing the Shares (the "Stock
Certificate") for cancellation and a stock power, in the form attached as
Exhibit A hereto (the "Stock Power"), duly signed by Seller.

                  1.2      Full  Consideration.  The  parties  agree that the
full  consideration  for the  purchase  hereunder  by the Company of the Shares
is the delivery of the Purchase Price by the Company pursuant to Section 1.1 of
this Agreement.

<PAGE>

                  1.3 Fair Value. The parties agree that they have used their
respective best judgment to determine the fair value to that party of the
consideration being provided and received pursuant to this Agreement. The
parties acknowledge that such judgments were made independently of each other
based upon that party's assessment and view of the consideration being received
and provided.

                  1.4 No Additional Consideration. Except for the Purchase
Price, Seller acknowledges and agrees that Seller is neither owed nor entitled
to any additional compensation or consideration from the Company or its
directors, officers, employees, agents, representatives or stockholders with
respect to the purchase and sale of the Shares.

         2. Cancellation of Note. The parties agree that as payment in full of
the Purchase Price due pursuant to Section 1.1 of the Agreement, the Company
will, effective upon the Effective Date, discharge Seller from all of Seller's
obligations pursuant to the Note and deliver the Note to Seller for
cancellation. In the event that the Purchase Price is greater than the Loan
Obligation, then the Company shall deliver a check to the Seller in the amount
of such difference.

         3.       Representations and Warranties of Seller.  Seller hereby
represents and warrants to the Company as follows:

                  3.1 Ownership of the Shares. On the Effective Date, Seller is
the lawful record and beneficial owner of, and has good and marketable title to,
the Shares. On the Effective Date, the Shares are owned by Seller free and clear
of all liens, encumbrances, security interests, equities, claims, options,
licenses, charges and assessments, and are subject to no restrictions with
respect to transferability by Seller to the Company except compliance with
applicable securities laws. On the Effective Date, the Shares are fully vested
and no longer subject to the Company's right of repurchase. Pursuant to this
Agreement and the Stock Power, Seller shall convey to the Company good and
marketable title in and to the Shares.

                  3.2 Authority. Seller has taken all action required by Seller
necessary for the authorization, execution, delivery of and performance of all
obligations of Seller under this Agreement. Seller represents that this
Agreement is a legal, valid and binding obligation of Seller, enforceable in
accordance with its terms, except as may be limited by (i) applicable
bankruptcy, insolvency, reorganization or other laws of general application
relating to or affecting the enforcement of creditors' rights generally and (ii)
the effect of rules of law governing the availability of equitable remedies. The
execution and delivery of, and the performance of the obligations under, this
Agreement by Seller do not and will not contravene or result in any breach of
any law or of any regulation, order, writ, injunction or decree of any court,
tribunal, governmental body, authority, agency or instrumentality applicable to
Seller or the Shares, nor do or will such execution, delivery or performance
violate, conflict with or result in (or with notice or lapse of time or both
result in) a breach of or default under any term or provision of any agreement
or contract, oral or written, to which Seller is a party or is bound or to which
the Shares are subject.

                                       2

<PAGE>

                  3.3      Disclosure.  Seller has had an opportunity to seek
the advice of, and has sought and consulted with, legal counsel and such other
advisors, including investment experts, as Seller deemed appropriate with regard
to the sale of the Shares and with regard to the other terms of this Agreement.
Seller and Seller's advisors have had a reasonable opportunity to obtain from
the Company additional information, to the extent possessed by the Company or
obtainable by the Company without unreasonable effort or expense. To the best of
Seller's knowledge and belief, all information requested has been provided to
the full satisfaction of Seller.

                  3.4      Brokers. No broker, finder or other person is
entitled to any broker's, finder's or other fee or commission in connection with
this Agreement or the transactions contemplated hereby by reason of any claim
arising by, through or under Seller.

                  3.5      Adequacy of Consideration. The consideration Seller
is receiving in exchange for the consideration Seller is giving under this
Agreement is fair, just and reasonable. Seller believes that the Company's
business is subject to high risks and Seller is aware that the value of the
Shares is subject to considerable potential fluctuation and may now, or in the
future, have an actual value substantially above, or below, the valuation
ascribed to such Shares by the parties under this Agreement and it is possible
that Seller might realize a higher value for the Shares if Seller held them for
an additional period. In making Seller's determination to enter into this
Agreement, Seller has relied on Seller's own advisors and their judgments and
diligence, and on the representations and warranties of the Company contained
herein and not on any advice or other information provided by the Company or its
advisors.

                  3.6      Differing Valuations. Seller understands and
acknowledges that Seller and the Company may have differing views of the current
and likely future value of the Shares. Seller further acknowledges that, except
for the representations and warranties explicitly set forth herein, the Company
is not and has not made any statement, representation or warranty to Seller
concerning: (i) the fairness or adequacy of the consideration given or received
under this Agreement; (ii) the current or likely future value of the Shares;
(iii) the markets, business, products, management, technical or marketing
capabilities, financial affairs or prospects of the Company; or (iv) any other
matter that has been relied upon by Seller or Seller's advisors in assessing the
value of the Shares or determining whether to enter into this Agreement upon the
terms and conditions set forth herein.

                  3.7      Miscellaneous Representations.

                           (a)      Seller and Seller's  advisors have such
knowledge and  experience  in  financial,  tax,  legal and business matters to
enable Seller to evaluate the merits and risks of the transactions contemplated
hereunder and to make an informed decision with respect thereto to assess the
value of the Shares and the consideration Seller is receiving hereunder and the
advisability of such transactions.

                           (b)      Seller  understands  that  the  tax and
accounting  consequences  to  Seller  of the  transactions contemplated
hereunder depends on Seller's own circumstances and

                                       3

<PAGE>

Seller has consulted Seller's own legal counsel and accountants with respect
thereto and has not received or relied on any advice from the Company or its
agents or representatives.

         4.       Representations and Warranties of the Company. The Company
hereby represents and warrants to Seller as follows:

                  4.1 Authority. The Company represents and warrants that all
action, corporate or otherwise, required by the Company, including by its
directors, stockholders and officers, necessary for the authorization,
execution, delivery of and performance of all obligations of the Company under
this Agreement, has been taken or will have been taken by the date hereof. The
Company further represents that this Agreement is a legal, valid and binding
obligation of the Company enforceable in accordance with its terms, except as
may be limited by (i) applicable bankruptcy, insolvency, reorganization or other
laws of general application relating to or affecting the enforcement of
creditors' rights generally and (ii) the effect of rules of law governing the
availability of equitable remedies. The execution and delivery of, and the
performance of the obligations under, this Agreement by the Company do not and
will not contravene or result in any breach of any law or of any regulation,
order, writ, injunction or decree of any court, tribunal, governmental body,
authority, agency or instrumentality applicable to, the Company, nor do or will
such execution, delivery or performance violate, conflict with or result in (or
with notice or lapse of time or both result in) a breach of or default under any
term or provision of any agreement or contract, oral or written, to which the
Company is a party or is bound.

                  4.2 Brokers. No broker, finder or other person is entitled to
any broker's, finder's or other fee or commission in connection with this
Agreement or the transactions contemplated hereby by reason of any claim arising
by, through or under the Company.

                  4.3      Organization,  Good  Standing  and  Qualification.
The Company is a  corporation  duly  organized,  validly existing and in good
standing under the laws of the State of Delaware.

         5.       Miscellaneous.

                  5.1 Legal Advice and Construction of Agreement. Each party
represents that it has received independent legal advice with respect to the
advisability of entering into this Agreement and neither has been entitled to
rely upon or has in fact relied upon the legal or other advice of the other
party or such other party's counsel in entering into this Agreement. Each party
has participated in the drafting and preparation of this Agreement, and
accordingly, in any construction or interpretation of this Agreement, the same
shall not be construed against any party by reason of the source of drafting.

                  5.2 Parties' Understanding. Each party represents that it has
carefully read this Agreement, that it has been fully explained to it by its
attorney, that it fully understands its final and binding effect, that the only
promises made to it to sign the Agreement are those stated above, and that it is
signing this Agreement voluntarily.

                                       4

<PAGE>

                  5.3 Entire Agreement. This Agreement constitutes a single
integrated contract expressing the entire agreement of the parties with respect
to the subject matter hereof and supersedes all prior and contemporaneous oral
and written agreements and discussions with respect to the subject matter
hereof, and, except as specifically set forth herein, there are no other
agreements, representations, promises or inducements, written or oral, express
or implied, between the parties hereto with respect to the subject matter
hereof.

                  5.4 Amendment and Waiver. This Agreement and each provision
hereof may be amended, modified, supplemented or waived only by a written
document specifically identifying this Agreement and duly executed by each party
hereto or the authorized representative of such party. Except as expressly
provided in this Agreement, no course of dealing between the parties hereto and
no delay in exercising any right, power or remedy conferred hereby or now or
hereafter existing at law, in equity, by statute or otherwise, shall operate as
a waiver of, or otherwise prejudice, any such rights, power or remedy.

                  5.5 California Law and Location. This Agreement was
negotiated, executed and delivered within the State of California, and the
rights and obligations of the parties hereto shall be construed and enforced in
accordance with and governed by the internal laws (and not the conflict of laws)
of the State of California applicable to the construction and enforcement of
contracts between parties resident in California which are entered into and
fully performed in California. Any action or proceeding arising out of, relating
to or concerning this Agreement, including, without limitation, any claim of
breach of contract, shall be filed in the state courts of Santa Clara County,
California, or in a United States District Court in the Northern District of
California and in no other location. The parties hereby waive the right to
object to such location on the basis of venue.

                  5.6 Survival. The definitions, representations and warranties
herein shall survive the execution and delivery of this Agreement and each party
hereto is estopped from making a claim which conflicts with its respective
representations and warranties hereunder.

                  5.7 Specific Performance. The parties hereto recognize and
agree that if for any reason any of the provisions of this Agreement are not
performed by any party hereto in accordance with their terms or are otherwise
breached, then the other parties hereto will suffer immediate and irreparable
harm or injury for which money damages will not be an adequate remedy.
Accordingly, the parties hereto each agree with the other that, in addition to
any other remedies, each party hereto shall be entitled to an injunction
restraining any violation or threatened violation by any other party hereto of
the provisions of this Agreement and a decree ordering such other party to
specifically perform its obligations under this Agreement. In the event that any
claim in equity shall be brought by any party hereto in an arbitration, before a
court or otherwise to enforce the provisions of the Agreement, none of the other
parties hereto shall allege, and each of the other parties hereto hereby waives
the defense, that there is an adequate remedy at law.

                  5.8 Severability. If any provision of this Agreement shall be
determined to be invalid, illegal or unenforceable, the validity, legality and
enforceability of the remaining provisions shall not in any way be affected or
impaired hereby.

                                       5

<PAGE>

                            5.9      Further  Assurances.  The parties agree to
execute such further documents and instruments and to take such further actions
as may be reasonably necessary to carry out the purposes and intent of this
Agreement.

                            5.10 Counterparts. This Agreement may be executed
in any number of counterparts, each of which when so executed and delivered
shall be deemed an original and all of which together shall constitute one and
the same instrument.

                                       6

<PAGE>

         IN WITNESS WHEREOF, the parties have executed this Agreement effective
as of the date and year written above.

         THE COMPANY:

         LEXAR MEDIA, INC.

         By:    /s/ Brian Jacobs
            -------------------------
         Name:  Brian Jacobs
         Title: Board Member

         SELLER:

                /s/ Eric Stang
         -------------------------
         Eric Stang

                                       7

<PAGE>

                                                                       EXHIBIT A

                                   Stock Power
                                   -----------

                           STOCK POWER AND ASSIGNMENT

                            SEPARATE FROM CERTIFICATE

         FOR VALUE RECEIVED and pursuant to that certain Stock Repurchase and
Note Cancellation Agreement dated as of April 29, 2002 (the "Agreement"), the
undersigned hereby sells, transfers, assigns and delivers unto Lexar Media,
Inc., a Delaware corporation (the "Company"), ______ shares of the Common Stock
of the Company standing in the undersigned's name on the books of the Company
represented by Certificate No. ____ delivered herewith, and does hereby
irrevocably constitute and appoint the Secretary of the Company as the
undersigned's attorney-in-fact, with full power of substitution, to transfer
said stock on the books of the Company.

Dated: _________________________

                                                       SELLER

                                                       -------------------------
                                                       Eric Stang

                                                       -------------------------

                                       8

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