Document:

sitm-ex101_89.htm

Exhibit 10.1

INDEPENDENT DIRECTOR COMPENSATION POLICY

(Approved July 27, 2020)

Non-employee members of the board of directors (the “Board”) of SiTime Corporation (the “Company”) shall be eligible to receive cash and equity compensation as set forth in this Independent Director Compensation Policy.  The cash compensation and equity grants described in this Independent Director Compensation Policy shall be paid or be made, as applicable, automatically and without further action of the Board, to each member of the Board who is not an employee of the Company or any parent or subsidiary of the Company (each, an “Independent Director”) who may be eligible to receive such cash compensation or equity grants, unless such Independent Director declines the receipt of such cash compensation or equity grants by written notice to the Company.  This Independent Director Compensation Policy shall remain in effect until it is revised or rescinded by further action of the Board.  The terms and conditions of this Independent Director Compensation Policy shall supersede any prior cash or equity compensation arrangements between the Company and its directors.

Cash Compensation

Annual Cash Retainer for Board Service.  Each Independent Director shall be eligible to receive an annual retainer of $40,000 for service on the Board.

Annual Cash Retainer for Committee Service.  In addition, an Independent Director shall be eligible to receive the following additional annual cash retainers for service in the following roles:

Committee Chair:

	
 
	
•
	
Audit: $20,000

	
 
	
•
	
Compensation: $10,000

	
 
	
•
	
Nominating/Governance: $10,000

Committee Member:

	
 
	
•
	
Audit: $8,000

	
 
	
•
	
Compensation: $5,000

	
 
	
•
	
Nominating/Governance: $5,000

Lead Independent Director: $20,000

The annual retainers shall be paid by the Company in quarterly installments or more frequently as deemed advisable by the officers of the Company for administrative or other reasons.

 

 

Equity Compensation

The Independent Directors shall be granted the following restricted stock unit (“RSU”) awards.  The RSUs shall be granted under and shall be subject to the terms and conditions of the Company’s 2019 Stock Incentive Plan or its successor (the “Plan”) and an RSU agreement, including attached exhibits, in substantially the same form approved by the Board for employee grants subject to the terms specified below.

Annual Awards:  On the first business day following the conclusion of each regular annual meeting of the Company’s stockholders, commencing with the 2021 annual meeting, each Independent Director who has served on the Board for at least six months and will continue serving as a member of the Board thereafter, shall receive a grant of RSUs (“Annual RSU Award”) under the Plan with respect to a number of shares of common stock equal to $175,000 divided by the average closing price of the Company’s common stock on The Nasdaq Global Market for the period of twenty (20) trading days ending on the day prior to the date of grant.  Each Annual RSU Award shall become fully vested on the February 20, May 20, August 20, or November 20 falling in the one-year anniversary quarter of the annual meeting, provided that (i) if the next years’ annual meeting date occurs prior to such vesting date and (ii) such Independent Director’s service will not continue following the annual meeting, then the Annual RSU Award for such Independent Director will vest on the day prior to the date of the annual meeting. Notwithstanding the foregoing, each Annual RSU Award shall become 100% vested if a Change in Control as defined in the Plan occurs during such Independent Director’s service.

Initial Awards:  Each Independent Director who first joins the Board after the date hereof and who was not previously an employee of the Company or a parent or subsidiary thereof shall receive a grant of RSUs (“Initial RSU Award”) under the Plan on the date of his or her election to the Board with respect to a number of shares of common stock equal to $250,000 divided by the average closing price of the Company’s common stock on The Nasdaq Global Market for the period of twenty (20) trading days ending on the day prior to the date of grant.  The Initial RSU Award shall vest annually over a 3-year period on the February 20, May 20, August 20, or November 20 falling in the anniversary quarter of the date of grant at an annual rate of 1/3 of the total number of RSUs subject to such award.  Notwithstanding the foregoing, each Initial RSU Award shall become 100% vested if a Change in Control as defined in the Plan occurs during such Independent Director’s service.

Annual Limitations

The grant date fair value of all equity awards (as determined in accordance with Financial Accounting Standards Board Accounting Standards Codification Topic 718, or any successor thereto) granted under the Plan, plus the amount of cash compensation paid, to any Independent Director as compensation for services as an Independent Director during any twelve (12)-month period may not exceed $500,000 (provided that such limit shall be increased to $750,000 for the first twelve (12)-month period that the Independent Director serves on the Board).

2sitm-ex102_208.htm

Exhibit 10.2

SITIME CORPORATION

EXECUTIVE BONUS AND RETENTION PLAN

(Approved August 4, 2020)

 

1.            Purpose.

The purpose of this Executive Bonus and Retention Plan (the “Plan”) is to attract, motivate and retain executives, including officers, of SiTime Corporation (“SiTime” or the “Company”) to align such individuals’ performance with SiTime’s corporate goals.

2.            Administration.

The Plan shall be administered by the Compensation Committee of the Board of Directors of the Company (the “Committee”). The Committee shall have the sole discretion and authority to:

a.administer and interpret the Plan;

b.determine which employees of the Company will be eligible to participate in the Plan in any given fiscal year or portion thereof;

c.prescribe the terms and conditions of any awards granted under the Plan;

d.adopt rules and guidelines for the administration of the Plan that are consistent with the Plan; and

e.interpret, amend or revoke any such rules and guidelines.

With respect to Plan matters not affecting the officers of the Company, the Committee may delegate its administrative powers to any one or more of the officers of the Company. The decisions of the Committee (or its delegate, as applicable) shall in every case be final and binding on all persons having an interest in the Plan.

3.            Bonus Pool.

a.The amount available to allocate for payment of bonuses under the Plan in respect of a given fiscal year (or portion thereof) of the Company (the “Bonus Pool”) shall be determined by the Committee according to the following procedures. For any fiscal year, or portion thereof (the “Performance Period”) the Committee will establish threshold, target and maximum bonus levels (the “Bonus Targets”) and the corresponding threshold, target and maximum performance goals (the “Performance Goals”). 

b.The Performance Goals may be different for different employees and may include but shall not be limited to: (a) any one or more financial performance metrics, measured either quarterly, semi-annually, annually or cumulatively over a period of years, on an absolute basis or relative to a pre-established target, on a GAAP or non-GAAP basis in the case of certain financial metrics, to previous years’ results or to a designated comparison group, in each case as specified and weighted by the Committee; and (b) such other criteria as the Committee may determine are appropriate to measure the performance of an employee in carrying out his or her assigned duties and responsibilities.

c.As soon as practicable after the end of each Performance Period, the Committee will certify the final Bonus Pool for the Performance Period considering both the Bonus Targets and the level of 

 

 

achievement of the Performance Goals. Notwithstanding any contrary provision of the Plan, the Committee may, in its sole discretion and at any time, (i) increase, reduce or eliminate the amount allocated to the Bonus Pool, or (ii) modify the Bonus Targets or Performance Goals used in determining the Bonus Pool .

4.            Bonus Allocation and Payment.

Following certification of the Bonus Pool, the Bonus Pool will be allocated by the Committee (or its delegate, as applicable) and paid out on terms as determined by the Committee. To the extent that the Plan bonus threshold, target or maximum funding and/or performance levels are pre-established with respect to any or all employees, the Committee (or its delegate, as applicable) reserves the discretion to modify the final bonus(es) payable to any or all such employees as determined appropriate in its sole discretion. Bonuses under the Plan shall be payable as soon as practicable following certification of the Bonus Pool in cash or awards with respect to shares of Company common stock issued under the Company’s 2019 Stock Incentive Plan, including awards subject to additional vesting requirements.  Bonuses shall be subject to applicable deductions and tax withholdings. An employee must be employed on the date of payment (and on any subsequent vesting date(s) to the extent applicable) in order to earn any bonus under this Plan.

5.            Amendment and Termination.

Either the Board of Directors of the Company or the Committee may amend, suspend or terminate the Plan in writing at any time, for any and no reason.

6.            Miscellaneous.

a.Nothing in this Plan or any bonus granted hereunder shall interfere with or limit in any way the right of the Company to terminate any individual’s employment or service at any time or for any reason not prohibited by law.

b.Bonuses under the Plan are discretionary. No person is automatically entitled to participate in the Plan in any fiscal year, or portion thereof.  At no time prior to actual payment of a bonus shall any person accrue any vested interest or right whatsoever under the Plan.  The Committee has no obligation for uniformity of treatment of individuals or bonuses under the Plan.

c.An individual’s right or interest, if any, to receive payment of a bonus under the Plan is not assignable or transferable and shall not inure to any third-party beneficiary.

d.The Plan and all obligations hereunder shall be binding on any successor to the Company, whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation, sale or otherwise, of all or substantially all the business and/or assets of the Company.

e.The Plan and any bonuses payable hereunder are intended to be exempt to the maximum extent possible from Section 409A of the Internal Revenue Code of 1986, as amended, and all regulations or other guidance promulgated thereunder (collectively, “Section 409A”); and to otherwise comply with Section 409A. The Plan shall be interpreted and administered in a manner consistent with this intent.

f.The Plan is intended to be unfunded. Participants are and shall at all times be general unsecured creditors of the Company with respect to their bonuses hereunder, if any. The Company shall bear all expenses and costs in connection with the operation of the Plan.

g.If any provision of this Plan or the application thereof to any individual or circumstance is deemed invalid or unenforceable by a court of competent jurisdiction, then the remainder of the Plan or the 

 

 

application of such term or provisions to individuals or circumstances shall be valid and enforceable to the fullest extent permitted by law.

h.The Plan, all bonuses granted hereunder and all determinations made and actions taken pursuant hereto shall be governed by the laws of the State of California without giving effect to principles of conflicts of law.

i.Bonuses paid under the Plan will be subject to recoupment in accordance with any recoupment policy that the Company adopts or is required to adopt pursuant to the listing standards of any national securities exchange or association on which the Company’s securities are listed, the Dodd-Frank Wall Street Reform and Consumer Protection Act, or other applicable law.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00312-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00312-of-00352.parquet"}]]