Document:

Exhibit 10.2

 

SILICON
LABORATORIES INC.

2009
EMPLOYEE STOCK PURCHASE PLAN

 

I.              PURPOSE OF
THE PLAN

 

This Employee Stock Purchase Plan is intended to
promote the interests of Silicon Laboratories Inc., a Delaware corporation, by
providing Eligible Employees with the opportunity to acquire a proprietary
interest in the Corporation through participation in an employee stock purchase
plan designed to qualify under Section 423 of the Code, although the
Corporation makes no undertaking nor representation to maintain such
qualification.  In addition, this Plan
authorizes the grant of rights to purchase Common Stock under a Non-423(b) Plan
which do not qualify under Section 423(b) of the Code, pursuant to
rules, procedures or sub-plans adopted by the Board or Plan Administrator which
are designed to achieve tax, securities law or other of the Corporation’s
compliance objectives in particular locations outside the United States.  This Plan shall govern the terms and
conditions of grants made under both the Code Section 423(b) Plan
component and the Non-423(b) Plan component.

 

Capitalized terms herein shall have the meanings
assigned to such terms in the attached Appendix.

 

II.            ADMINISTRATION
OF THE PLAN

 

The Plan Administrator shall have full authority to
interpret and construe any provision of the Plan and, for the grant of rights
to purchase Common Stock under the Code Section 423(b) Plan, to adopt
such rules and regulations for administering the Plan as it may deem
necessary in order to comply with the requirements of Section 423 of the
Code.  The Plan Administrator may from
time to time grant or provide for the grant of rights to purchase Common Stock
under the Non-423(b) Plan.  If such
grants are intended to be made under the Non-423(b) Plan, they will be
designated as such at the time of grant and such grants may not comply with the
requirements set forth under Section 423 of the Code. Decisions of the
Plan Administrator shall be final and binding on all parties having an interest
in the Plan.

 

III.           STOCK
SUBJECT TO PLAN

 

A.            The stock
purchasable under the Plan shall be shares of authorized but unissued or
reacquired Common Stock, including shares of Common Stock purchased on the open
market.  Subject to Article III (B) below,
the maximum number of shares of Common Stock which may be issued in the
aggregate under the Plan shall be 1,250,000 shares.

 

B.            Should any
change be made to the Common Stock by reason of any stock split, stock
dividend, recapitalization, combination of shares, exchange of shares or other
change affecting the outstanding Common Stock as a class without the
Corporation’s receipt of consideration, appropriate adjustments shall be made
to the maximum number and class of securities issuable in the aggregate under
the Plan, (ii) the maximum number and class of securities purchasable per
Participant and in the aggregate on any one Purchase Date and (iii) the
number and class of securities and the price per share in effect under each
outstanding purchase right in order to prevent the dilution or enlargement of
benefits thereunder.

 

 

IV.           OFFERING
PERIODS

 

A.            Shares of
Common Stock shall be offered for purchase under the Plan through a series of
successive offering periods until such time as (i) the maximum number of
shares of Common Stock available for issuance under the Plan shall have been
purchased or (ii) the Plan shall have been sooner terminated.

 

B.            Each
offering period shall be of such duration (not to exceed twenty-four (24)
months) as determined by the Plan Administrator prior to the start date of such
offering period.  However, the initial
offering period shall commence at the Effective Date and terminate twenty-four
(24) months from the commencement date of such offering period, unless (i) the
offering period automatically resets prior to that date (as described in Article IV(D) hereof),
or (ii) prior to the commencement of the initial offering period, the Plan
Administrator determines that such initial offering period shall be of a
shorter duration.  Subsequent offering
periods shall commence as designated by the Plan Administrator.

 

C.            Each
offering period shall be comprised of a series of one or more successive and/or
overlapping Purchase Intervals having such durations as may be established by
the Plan Administrator.  Unless otherwise
provided by the Plan Administrator, Purchase Intervals shall run from the last
business day in April each year to the last business day in October of
the same year and from the last business day in October each year to the
last business day in April of the following year.  However, the first Purchase Interval in
effect under the initial offering period shall commence on the Effective Date
and terminate on the last business day in the next succeeding April or October (whichever
is earlier).

 

D.            Should the
Fair Market Value per share of Common Stock on any Purchase Date within an
offering period be less than the Fair Market Value per share of Common Stock on
the start date of that offering period, then that offering period shall
automatically terminate immediately after the purchase of shares of Common
Stock on such Purchase Date, and a new offering period shall commence on that
day, following such Purchase.  The new
offering period shall have a duration of twenty-four (24) months, unless a
shorter duration is established by the Plan Administrator within thirty (30)
calendar days following the start date of that offering period.

 

V.            ELIGIBILITY

 

A.            Each
individual who is an Eligible Employee on the start date of an offering period
under the Plan may enter that offering period on such start date or on any
subsequent Semi-Annual Entry Date within that offering period, provided he or
she remains an Eligible Employee.

 

B.            Each
individual who first becomes an Eligible Employee after the start date of an
offering period may enter that offering period on any subsequent Semi-Annual
Entry Date within that offering period on which he or she is an Eligible
Employee.

 

C.            The date an
individual enters an offering period shall be designated his or her Entry Date
for purposes of that offering period.

 

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D.            To
participate in the Plan for a particular offering period, the Eligible Employee
must complete the enrollment forms prescribed by the Plan Administrator
(including a stock purchase agreement and a payroll deduction authorization)
and file such forms with the Plan Administrator (or its designate) on or before
his or her scheduled Entry Date.  Once an
Eligible Employee has enrolled in an offering period, his or her enrollment
will remain in effect through subsequent offering periods unless the Eligible
Employee withdraws from the Plan.

 

VI.           PAYROLL
DEDUCTIONS

 

A.            Except as
otherwise provided by the Plan Administrator prior to the commencement of an
offering period, the payroll deduction authorized by the Participant for
purposes of acquiring shares of Common Stock during an offering period may be
any multiple of one percent (1%) of the Participant’s Base Salary during each
Purchase Interval within that offering period, up to a maximum equal to the lesser
of (i) twenty-five percent (25%) of the Participant’s Base Salary per
pay-period during the applicable Purchase Interval and (ii) one hundred
percent (100%) of the Participant’s Base Salary that remains after subtracting
all other amounts that are to be deducted or withheld from the Participant’s
Base Salary during such pay-period in the Purchase Interval, provided, however,
that a lesser amount of the Participant’s remaining Base Salary may be deducted
if required to comply with applicable local law.  The deduction rate so authorized shall
continue in effect throughout the offering period, except to the extent such
rate is changed in accordance with the following guidelines:

 

(i)            The
Participant may, at any time during the offering period, reduce his or her rate
of payroll deduction to become effective as soon as possible after filing the
appropriate form with the Plan Administrator. 
The Participant may not, however, effect more than one (1) such
reduction per Purchase Interval.

 

(ii)           The Participant
may, prior to the commencement of any new Purchase Interval within the offering
period, increase the rate of his or her payroll deduction by filing the
appropriate form with the Plan Administrator. 
The new rate (which may not exceed the twenty-five percent (25%)
maximum) shall become effective on the start date of the first Purchase
Interval following the filing of such form.

 

B.            Payroll
deductions shall begin on the first pay day following the Participant’s Entry
Date into the offering period and shall (unless sooner terminated by the
Participant) continue through the pay day ending with or immediately prior to
the last day of that offering period. 
The amounts so collected shall be credited to the Participant’s book
account under the Plan, but no interest shall be paid on the balance from time
to time outstanding in such account, unless payment of interest is required
under local law in which case the purchase rights will be granted under the
Non-423(b) Plan, if necessary under applicable laws or regulations.  The amounts collected from the Participant
shall not be required to be held in any segregated account, unless otherwise
required under local law (in which case, such rights will be granted under the
Non-423(b) Plan if necessary), or trust fund and may be commingled with
the general assets of the Corporation and used for general corporate purposes.

 

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C.            Payroll
deductions shall automatically cease upon the termination of the Participant’s
purchase right in accordance with the provisions of the Plan.

 

D.            The
Participant’s acquisition of Common Stock under the Plan on any Purchase Date
shall neither limit nor require the Participant’s acquisition of Common Stock
on any subsequent Purchase Date, whether within the same or a different
offering period.

 

E.             For rights to purchase Common Stock
granted under the Non-423(b) Plan, if payroll deductions are not permitted
under local law, as determined by the Corporation, Participants may be
permitted to contribute to the Plan by an alternative method, as determined by
the Corporation.  Alternate methods of
contribution may be permitted for purchase rights granted under the Code Section 423(b) Plan
if such is determined to be permissible under Code Section 423.

 

VII.         PURCHASE
RIGHTS

 

A.            Grant of Purchase Right.  A Participant shall be granted a separate
purchase right for each offering period in which he or she participates.  The purchase right shall be granted on the
Participant’s Entry Date into the offering period and shall provide the
Participant with the right to purchase shares of Common Stock, in a series of
successive installments over the remainder of such offering period, upon the
terms set forth below.  The Participant
shall execute a stock purchase agreement embodying such terms and such other
provisions (not inconsistent with the Plan) as the Plan Administrator may deem
advisable.

 

Under no circumstances shall purchase rights be
granted under the Plan to any Eligible Employee if such individual would,
immediately after the grant, own (within the meaning of Code Section 424(d))
or hold outstanding options or other rights to purchase, stock possessing five
percent (5%) or more of the total combined voting power or value of all classes
of stock of the Corporation or any Corporate Affiliate.

 

B.            Exercise of the Purchase Right.  Each purchase
right shall be automatically exercised in installments on each successive
Purchase Date within the offering period, and shares of Common Stock shall
accordingly be purchased on behalf of each Participant (other than Participants
whose payroll deductions have previously been refunded pursuant to the
Termination of Purchase Right provisions below) on each such Purchase
Date.  The purchase shall be effected by
applying the Participant’s payroll deductions for the Purchase Interval ending
on such Purchase Date to the purchase of whole shares of Common Stock at the
purchase price in effect for the Participant for that Purchase Date.

 

C.            Purchase Price.  The purchase price per share at which Common
Stock will be purchased on the Participant’s behalf on each Purchase Date
within the offering period shall be established by the Plan Administrator;
provided however, that such purchase price shall not be less than eighty-five
percent (85%) of the lower of (i) the Fair Market Value per share
of Common Stock on the Participant’s Entry Date into that offering period or (ii) the
Fair Market Value per share of Common Stock on that Purchase Date.  Subject to adjustment as provided in Article III
(B) or Article X below, the purchase price per share at which Common
Stock will be purchased on the Participant’s behalf on each Purchase Date
within the offering period shall be

 

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equal to eighty-five percent (85%) of
the lower of (i) the Fair Market Value per share of Common Stock on
the Participant’s Entry Date into that offering period or (ii) the Fair
Market Value per share of Common Stock on that Purchase Date.

 

D.            Number of Purchasable Shares.  The number of shares of Common Stock
purchasable by a Participant on each Purchase Date during the offering period
shall be the number of whole shares obtained by dividing the amount collected
from the Participant through payroll deductions during the Purchase Interval
ending with that Purchase Date by the purchase price in effect for the
Participant for that Purchase Date. 
However, except as otherwise provided by the Plan Administrator prior to
the commencement of an offering period, the maximum number of shares of Common
Stock purchasable per Participant on any one Purchase Date during such offering
period shall not exceed Four Hundred (400) shares, subject to periodic
adjustments in the event of certain changes in the Corporation’s
capitalization. In addition, the maximum number of shares of Common Stock
purchasable in the aggregate by all Participants on any one Purchase Date under
the Plan shall not exceed Three Hundred Thousand (300,000) shares (or such
other number designated by the Plan Administrator), subject to periodic
adjustments in the event of certain changes in the Corporation’s
capitalization.  Should the total number
of shares of Common Stock to be purchased by all Participants pursuant to
outstanding purchase rights on any particular date exceed the maximum share
limitation set forth in this paragraph, the Plan Administrator shall make a
pro-rata allocation of the available shares on a uniform and nondiscriminatory
basis.

 

E.             Excess Payroll Deductions.  Any payroll deductions not applied to the
purchase of shares of Common Stock on any Purchase Date because they are not
sufficient to purchase a whole share of Common Stock shall be held for the
purchase of Common Stock on the next Purchase Date.  However, any payroll deductions not applied to
the purchase of Common Stock by reason of the limitation on the maximum number
of shares purchasable on the Purchase Date shall be promptly refunded.

 

F.             Termination of Purchase Right.  The following provisions shall govern the
termination of outstanding purchase rights:

 

(i)            A
Participant may, at any time prior to the next scheduled Purchase Date in the
offering period, withdraw from participation in the Plan by filing the
appropriate form with the Plan Administrator (or its designate), and no further
payroll deductions shall be collected from the Participant with respect to the
withdrawal.  Any payroll deductions
collected during the Purchase Interval in which such withdrawal occurs shall,
at the Participant’s election, be immediately refunded or held for the purchase
of shares on the next Purchase Date.  If
no such election is made at the time of such withdrawal, then the payroll
deductions collected with respect to the terminated right shall be refunded as
soon as possible.

 

(ii)           The
termination of such purchase right shall be irrevocable, and the Participant
may not subsequently rejoin the offering period for which the terminated
purchase right was granted.  In order to
resume participation in any subsequent offering period, such individual must
re-enroll in the Plan (by making

 

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a timely filing of the prescribed
enrollment forms) on or before his or her scheduled Entry Date into that
offering period.

 

(iii)          Should the
Participant cease to remain an Eligible Employee for any reason (including
death, disability or change in status) while his or her purchase right remains
outstanding, then that purchase right shall immediately terminate, and all of
the Participant’s payroll deductions for the Purchase Interval in which the
purchase right so terminates shall be immediately refunded.  However, should the Participant cease to
remain in active service by reason of an approved unpaid leave of absence, then
the Participant shall have the right, exercisable up until the last business
day of the Purchase Interval in which such leave commences, to (a) withdraw
all the payroll deductions collected to date on his or her behalf for that
Purchase Interval or (b) have such funds held for the purchase of shares
on his or her behalf on the next scheduled Purchase Date, provided the
Participant remains an Eligible Employee on such Purchase Date.  In no event, however, shall any further
payroll deductions be collected on the Participant’s behalf during such leave,
unless continuation of payroll deductions or other authorized contributions is
required under local law, in which case the purchase rights will be granted
under the Non-423(b) Plan, if necessary under applicable laws or
regulations.  Upon the Participant’s
return to active service (i) within ninety (90) days following the
commencement of such leave or, (ii) prior to the expiration of any longer
period for which such Participant’s right to reemployment with the Corporation
or Corporate Affiliate is guaranteed by either statute or contract, his or her
payroll deductions under the Plan shall automatically resume at the rate in
effect at the time the leave began. 
However, should the Participant’s leave of absence exceed ninety (90)
days and his or her re-employment rights not be guaranteed by either statute or
contract, then the Participant’s status as an Eligible Employee will be deemed
to terminate on the ninety-first (91st) day of that leave, and such Participant’s
purchase right for the offering period in which that leave began shall
thereupon terminate.  An individual who
returns to active employment following such a leave shall be treated as a new
Eligible Employee for purposes of the Plan and must, in order to resume
participation in the Plan, re-enroll in the Plan (by making a timely filing of
the prescribed enrollment forms) on or before his or her scheduled Entry Date
into the offering period, unless a re-enrollment requirement would be contrary
to local law, in which case the purchase rights will be granted under the
Non-423(b) Plan, if necessary under applicable laws or regulations.

 

G.            Change of Control.  Each outstanding purchase right shall
automatically be exercised, prior to the effective date of any Change of
Control on a date determined by the Plan Administrator, by applying the payroll
deductions of each Participant for the Purchase Interval in which such Change
of Control occurs to the purchase of whole shares of Common Stock at the
purchase price per share established by the Plan Administrator for the applicable
offering period, treating as the Purchase Date for this purpose the date on
which shares are purchased prior to the effective date of such Change of
Control The applicable limitation on the number of shares of Common Stock
purchasable by all Participants in the aggregate shall not apply to any such
purchase.

 

6

 

The Corporation shall use its best efforts to provide
at least ten (10)-days prior written notice of the occurrence of any Change of
Control, and Participants shall, following the receipt of such notice, have the
right to terminate their outstanding purchase rights prior to the effective
date of the Change of Control.

 

H.            Proration of Purchase Rights.  Should the total number of shares of Common
Stock to be purchased pursuant to outstanding purchase rights on any particular
date exceed the number of shares then available for issuance under the Plan,
the Plan Administrator shall make a pro-rata allocation of the available shares
on a uniform and nondiscriminatory basis, and the payroll deductions of each
Participant, to the extent in excess of the aggregate purchase price payable
for the Common Stock pro-rated to such individual, shall be refunded.

 

I.              Assignability. 
The purchase right shall be exercisable only by the Participant and
shall not be assignable or transferable by the Participant.

 

J.             Stockholder Rights.  A Participant shall have no stockholder
rights with respect to the shares subject to his or her outstanding purchase
right until the shares are purchased on the Participant’s behalf in accordance
with the provisions of the Plan and the Participant has become a holder of
record of the purchased shares.

 

K.            Tax Withholding.  At the time a
Participant’s purchase right is exercised, in whole or in part, or at the time
a Participant disposes of some or all of the shares of Common Stock he or she
acquires under the Plan, the Participant shall make adequate provision for the
U.S. federal, state, local and foreign tax withholding obligations, if any, of
the Corporation and/or Corporate Affiliate which arise upon exercise of the
purchase right or upon such disposition of shares, respectively.  The Corporation and/or the Corporate
Affiliate may, but shall not be obligated to, withhold from the Participant’s
compensation or any other payments due the Participant the amount necessary to
meet such withholding obligations or withhold from the proceeds of the sale of
shares of Common Stock or any other method of withholding the Corporation
and/or the Corporate Affiliate deems appropriate.  The Corporation and/or the Corporate
Affiliate shall have the right to take such other action as may be necessary in
the opinion of the Corporation or a Corporate Affiliate to satisfy withholding
obligations for such taxes.

 

VIII.        ACCRUAL
LIMITATIONS

 

A.            No
Participant shall be entitled to accrue rights to acquire Common Stock pursuant
to any purchase right outstanding under this Plan if and to the extent such
accrual, when aggregated with (i) rights to purchase Common Stock accrued
under any other purchase right granted under this Plan and (ii) similar
rights accrued under other employee stock purchase plans (within the meaning of
Code Section 423) of the Corporation or any Corporate Affiliate, would
otherwise permit such Participant to purchase more than Twenty-Five Thousand
Dollars ($25,000) worth of stock of the Corporation or any Corporate Affiliate
(determined on the basis of the Fair Market Value per share on the date or
dates such rights are granted) for each calendar year such 

 

7

 

rights are at any time outstanding,
or, if required pursuant to final revised Code Section 423 regulations
issued by the U.S. Internal Revenue Service, for each calendar year such rights
are outstanding and exercisable.  The
requirements set forth under this provision will be interpreted and applied to
comply with current requirements under Code Section 423.

 

B.            For purposes
of applying such accrual limitations to the purchase rights granted under the
Plan, the following provisions shall be in effect:

 

(i)            The right to
acquire Common Stock under each outstanding purchase right shall accrue in a
series of installments on each successive Purchase Date during the offering
period on which such right remains outstanding.

 

(ii)           No right to
acquire Common Stock under any outstanding purchase right shall accrue to the
extent the Participant has already accrued in the same calendar year the right
to acquire Common Stock under one (1) or more other purchase rights at a
rate equal to Twenty-Five Thousand Dollars ($25,000) worth of Common Stock
(determined on the basis of the Fair Market Value per share on the date or
dates of grant) for each calendar year such rights were at any time
outstanding, or, if required pursuant to final revised regulations issued by
the U.S. Internal Revenue Service, for each calendar year such rights were
outstanding and exercisable.

 

C.            If by reason
of such accrual limitations, any purchase right of a Participant does not
accrue for a particular Purchase Interval, then the payroll deductions which
the Participant made during that Purchase Interval with respect to such
purchase right shall be promptly refunded.

 

D.            In the event
there is any conflict between the provisions of this Article and one or
more provisions of the Plan or any instrument issued thereunder, the provisions
of this Article shall be controlling.

 

IX.           EFFECTIVE
DATE, TERM OF THE PLAN AND COMPLIANCE WITH LAWS

 

A.            The Plan was
adopted by the Board on January 29, 2009 and shall become effective at the
Effective Date, provided that the Plan shall have been approved by the
stockholders of the Corporation, and provided further that no purchase rights
granted under the Plan shall be exercised, and no shares of Common Stock shall
be issued hereunder, until the Corporation shall have complied with all
applicable requirements of the 1933 Act (including the registration of the
shares of Common Stock issuable under the Plan on a Form S-8 registration
statement filed with the Securities and Exchange Commission, unless in the
opinion of legal counsel to the Corporation, the shares issuable upon exercise
of the purchase rights may be issued in accordance with the terms of an
applicable exemption from the registration requirements of said Act), all
applicable listing requirements of any stock exchange on which the Common Stock
is listed for trading and all other applicable requirements established by any
applicable U.S. federal, state or foreign securities laws or other law or
regulation.  In the event such
stockholder approval is not obtained, or such compliance is not effected,
within twelve (12) months after the date on which the Plan is adopted by the
Board, the Plan shall terminate and have no further force or effect, and any
sums collected from Participants during the initial

 

8

 

offering period hereunder shall be
refunded.  The inability of the
Corporation to obtain from any regulatory body having jurisdiction the
authority, if any, deemed by the Corporation’s legal counsel to be necessary
for the lawful issuance and sale of any shares under the Plan shall relieve the
Corporation 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.  As a condition to the exercise of a purchase
right, the Corporation may require the Participant to satisfy any
qualifications that may be necessary or appropriate, to evidence compliance
with any applicable law or regulation, and to make any representation or
warranty with respect thereto as may be requested by the Corporation.

 

B.            Unless
sooner terminated by the Board, in its sole discretion, the Plan shall
terminate upon the earliest of (i) the date on which all shares available
for issuance under the Plan shall have been sold pursuant to purchase rights
exercised under the Plan or (ii) the date on which all purchase rights are
exercised in connection with a Change of Control.  No further purchase rights shall be granted or
exercised, and no further payroll deductions shall be collected, under the Plan
following such termination.

 

X.            AMENDMENT/TERMINATION
OF THE PLAN

 

A.            The Board
may alter, amend, suspend or terminate the Plan at any time to become effective
immediately following the close of any Purchase Interval.  However, the Plan may be amended or
terminated immediately upon Board action, if and to the extent necessary the
Board or the Plan Administrator, as applicable, determines that such amendment
or termination of the Plan is in the best interests of the Corporation and its
stockholders.  Such actions by the Board
may include, without limitation, (i) termination of the Plan or any
offering period or Purchase Interval, (ii) acceleration of the Purchase
Date of any Purchase Interval, (iii) reduction of the discount or change
in the method of determining the purchase price in any Purchase Interval or
offering period (e.g., by determining the purchase price solely on the basis of
the Fair Market Value on the Purchase Date), (iv) reduction in the maximum
number of shares that may be purchased by any Participant or in the aggregate
by all Participants on any Purchase Date or (v) any combination of the
foregoing actions.

 

B.            To the
extent necessary to comply with Section 423 of the Code (or any successor rule or
provision or any other applicable law, regulation or stock exchange rule), the
Corporation shall obtain shareholder approval for such amendment or termination
in such a manner and to such a degree as required.

 

XI.           RULES FOR FOREIGN
JURISDICTIONS.

 

A.            The Board or Plan Administrator may adopt
rules or procedures relating to the operation and administration of the
Non-423(b) component of the Plan to accommodate the specific requirements
of local laws and procedures.  Without
limiting the generality of the foregoing, the Board or Plan Administrator is
specifically authorized to adopt rules and procedures regarding handling
of payroll deductions, payment of interest, conversion of local currency,
payroll tax, withholding procedures and handling of stock certificates which
vary with local requirements.

 

9

 

B.            The Board or Plan Administrator may also
adopt rules, procedures or sub-plans applicable to particular Participating Corporations
or locations under the non-423 component of the Plan.  The rules of such sub-plans may take
precedence over other provisions of this Plan, with the exception of Article III
(A), but unless otherwise superseded by the terms of such sub-plan, the
provisions of this Plan shall govern the operation of such sub-plan.

 

XII.         GENERAL PROVISIONS

 

A.            Nothing in
the Plan shall confer upon the Participant any right to continue in the employ
of the Corporation or any Corporate Affiliate for any period of specific
duration or interfere with or otherwise restrict in any way the rights of the
Corporation (or any Corporate Affiliate employing such person) or of the
Participant, which rights are hereby expressly reserved by each, to terminate
such person’s employment at any time for any reason, with or without cause.

 

B.            The Code Section 423(b) Plan
is exempt from the application of Section 409A.  The Non-423(b) Plan is intended to be
exempt from the application of Section 409A of the Code under the
short-term deferral exception and any ambiguities shall be construed and
interpreted in accordance with such intent. 
Except as provided in Article XII (C) hereof, in the case of a
Participant who would otherwise be subject to Section 409A of the Code, to
the extent the Plan Administrator determines that a purchase right or the
exercise, payment, settlement or deferral thereof is subject to Section 409A
of the Code, the purchase right shall be granted, exercised, paid, settled or
deferred in a manner that will comply with Section 409A of the Code,
including Department of Treasury
regulations and other interpretive guidance issued thereunder, including
without limitation any such regulations or other guidance that may be issued
after the Effective Date.  Anything in
the foregoing to the contrary notwithstanding, the Corporation shall
have no liability to a Participant or any other party if the purchase right
that is intended to be exempt from, or compliant with Section 409A of the
Code is not so exempt or compliant or for any action taken by the Committee
with respect thereto.

 

C.            Although the
Corporation may endeavor to (1) qualify a purchase right for favorable tax
treatment under the laws of the United States or jurisdictions outside of the
United States or (2) avoid adverse tax treatment (e.g.,
under Section 409A of the Code), the Corporation makes no representation
to that effect and expressly disavows any covenant to maintain favorable or
avoid unfavorable tax treatment, anything to the contrary in this Plan,
including Article XII (B) hereof, notwithstanding.  The Corporation shall be unconstrained in its
corporate activities without regard to the potential negative tax impact on
Participants under the Plan.

 

D.            All costs
and expenses incurred in the administration of the Plan shall be paid by the
Corporation; however, each Plan Participant shall bear all costs and expenses
incurred by such individual in the sale or other disposition of any shares
purchased under the Plan.

 

E.             The
provisions of the Plan shall be governed by the laws of the State of Texas
without regard to that State’s conflict-of-laws rules.

 

10

 

 

Schedule
A

 

Participating
Corporations under the

2009
Employee Stock Purchase Plan

As of the
Effective Date

 

I.              Code Section 423(b) Plan
Participating Corporations

 

Silicon Laboratories Inc.

 

II.            Non-423(b) Plan
Participating Corporations

 

Silicon Laboratories UK
Limited

 

Silicon Laboratories
International Pte. Ltd.

 

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APPENDIX

 

The following definitions
shall be in effect under the Plan:

 

A.                                   Base Salary shall mean the regular base salary
or wages, overtime payments and shift premiums paid to a Participant by one or
more Participating Corporations during such individual’s period of
participation in one or more offering periods under the Plan and shall be
calculated before deduction of (i) any income or employment tax
withholdings or (ii) any contributions made by the Participant to any Code
Section 401(k) salary deferral plan or any Code Section 125
cafeteria benefit program now or hereafter established by the Corporation or
any Corporate Affiliate.  Base Salary
shall not include (i) any bonuses,
commissions, profit-sharing distributions or other incentive-type payments or (ii) any
contributions made by the Corporation or any Corporate Affiliate on the
Participant’s behalf to any employee benefit or welfare plan now or hereafter
established (other than Code Section 401(k) or Code Section 125
contributions deducted from such Base Salary).

 

B.                                     Board shall mean the Corporation’s Board
of Directors.

 

C.                                     Change of Control shall mean and includes each of the
following:

 

(i)                                     A
transaction or series of transactions (other than an offering of the Common
Stock to the general public through a registration statement filed with the
Securities and Exchange Commission) whereby any “person” or related “group” of “persons”
(as such terms are used in Sections 13(d) and 14(d)(2) of the
Exchange Act) (other than the Corporation, any of its subsidiaries, an employee
benefit plan maintained by the Corporation or any of its subsidiaries or a “person”
that, prior to such transaction, directly or indirectly controls, is controlled
by, or is under common control with, the Corporation) directly or indirectly
acquires beneficial ownership (within the meaning of Rule 13d-3 under the
Exchange Act) of securities of the Corporation possessing more than 50% of the
total combined voting power of the Corporation’s securities outstanding
immediately after such acquisition; or

 

(ii)                                  During any
period of two consecutive years, individuals who, at the beginning of such
period, constitute the Board together with any new director(s) (other than
a director designated by a person who shall have entered into an agreement with
the Corporation to effect a transaction described in Section C (i) or
Section C (iii) hereof) whose election by the Board or nomination for
election by the Corporation’s stockholders was approved by a vote of at least a
majority of the directors then still in office who either were directors at the
beginning of the two-year period or whose election or nomination for election
was previously so approved, cease for any reason to constitute a majority
thereof; or

 

(iii)                               The
consummation by the Corporation (whether directly involving the Corporation or
indirectly involving the Corporation through one or more intermediaries) of (x) a
merger, consolidation, reorganization, or business 

 

A-1

 

combination or (y) a sale or
other disposition of all or substantially all of the Corporation’s assets in
any single transaction or series of related transactions or (z) the
acquisition of assets or stock of another entity, in each case other than a
transaction:

 

a.                                       Which results in the Corporation’s voting
securities outstanding immediately before the transaction continuing to
represent (either by remaining outstanding or by being converted into voting
securities of the Corporation or the person that, as a result of the
transaction, controls, directly or indirectly, the Corporation or owns,
directly or indirectly, all or substantially all of the Corporation’s assets or
otherwise succeeds to the business of the Corporation (the Corporation or such
person, the “Successor Entity”)) directly or indirectly, at least a majority of
the combined voting power of the Successor Entity’s outstanding voting
securities immediately after the transaction, and

 

b.                                      After which no person or group
beneficially owns voting securities representing 50% or more of the combined
voting power of the Successor Entity; provided,
however, that no person or group shall be treated for purposes of
this Section C (iii) (b) as beneficially owning 50% or more of
combined voting power of the Successor Entity solely as a result of the voting
power held in the Corporation prior to the consummation of the transaction; or

 

(iv)                              The
Corporation’s stockholders approve a liquidation or dissolution of the
Corporation.

 

The Board shall have full
and final authority, which shall be exercised in its discretion, to determine
conclusively whether a Change of Control of the Corporation has occurred
pursuant to the above definition, and the date of the occurrence of such Change
of Control and any incidental matters relating thereto.

 

D.                                    Code shall mean the Internal Revenue Code
of 1986, as amended.

 

E.                                      Code Section 423(b) Plan shall mean an
employee stock purchase plan which is designed to meet the requirements set
forth in Section 423(b) of the Code, as amended.  The provisions of the Code Section 423(b) Plan
shall be construed, administered and enforced in accordance with Section 423(b).

 

F.                                      Common Stock shall mean the Corporation’s common
stock.

 

G.                                     Corporate Affiliate shall mean any parent or subsidiary
corporation of the Corporation (as determined in accordance with Code Section 424),
whether now existing or subsequently established.

 

A-2

 

H.                                    Corporation shall mean Silicon Laboratories
Inc., a Delaware corporation, and any corporate successor to all or
substantially all of the assets or voting stock of Silicon Laboratories Inc.
which shall by appropriate action adopt the Plan.

 

I.                                         Exchange Act  means the U.S. Securities Exchange
Act of 1934, as amended.

 

J.                                        Effective Date shall mean the date of the final
purchase under the offering period in effect under the Prior Plan.

 

K.                                    Eligible Employee shall mean any person who is
employed by a Participating Corporation on a basis under which he or she is
regularly expected to render more than twenty (20) hours of service per week
for more than five (5) months per calendar year.  For rights to purchase Common Stock granted
under the Non-423(b) Plan, Eligible Employee shall also mean any other
employee of a Participating Corporation to the extent that local law requires
participation in the Plan to be extended to such employee, as determined by the
Corporation.

 

L.                                      Entry Date shall mean the date an Eligible
Employee first commences participation in the offering period in effect under
the Plan.  The earliest Entry Date under
the Plan shall be the Effective Date.

 

M.                                 Fair Market Value per share of Common Stock on any
relevant date shall be determined as of the “Applicable Date” (as defined
below) in accordance with the following provisions:

 

(i)                                     If the Common Stock is at the time listed
on any Stock Exchange, then the Fair Market Value shall be the closing selling
price per share of Common Stock on the Applicable Date on the Stock Exchange
determined by the Plan Administrator to be the primary market for the Common
Stock, as such price is officially quoted in the composite tape of transactions
on such exchange.  If there is no closing
selling price for the Common Stock on the Applicable Date, then the Fair Market
Value shall be the closing selling price on the last preceding date for which
such quotation exists.

 

(ii)                                  In the absence of an established market
for the shares of Common Stock, the Fair Market Value established by the Plan
Administrator acting in good faith.

 

For the purposes of this
provision, the “Applicable Date” shall be (a) with respect to any Entry
Date, the last business day immediately preceding the Entry Date and (b) with
respect to any Purchase Date, such Purchase Date.

 

N.                                    1933 Act shall mean the Securities Act of
1933, as amended.

 

O.                                    Non-423(b) Plan shall mean an employee stock
purchase plan which is not required to meet the requirements set forth in Section 423(b) of
the Code, as amended.

 

A-3

 

P.                                      Participant shall mean any Eligible Employee of
a Participating Corporation who is participating in the Plan.

 

Q.                                    Participating Corporations shall mean the
Corporation and such Corporate Affiliates as may be authorized from time to
time by the Board to participate in the Plan. 
The Board may determine that some Participating Corporations shall be
designated to participate in the Non-423(b) Plan.  The Participating Corporations in the Code Section 423(b) Plan
and in the Non-423(b) Plan are listed in attached Schedule A.

 

R.                                     Plan shall mean the Corporation’s 2009
Employee Stock Purchase Plan, as set forth in this document, as amended from
time to time, which includes a Code Section 423(b) Plan and a Non-423(b) Plan
component.

 

S.                                      Plan Administrator shall mean the committee of two (2) or
more Board members appointed by the Board to administer the Plan.

 

T.                                     Prior Plan shall mean the Silicon Laboratories
Inc. Employee Stock Purchase Plan adopted by the Board on January 5, 2000,
as amended.

 

U.                                    Purchase Date shall mean the last business day of
each Purchase Interval.

 

V.                                     Purchase Interval shall mean each successive six
(6)-month period within the offering period at the end of which there shall be
purchased shares of Common Stock on behalf of each Participant.

 

W.                                Semi-Annual Entry Date shall mean the last business days in
April and October each year (or such other days as may be established
by the Plan Administrator) on which an Eligible Employee may first enter an
offering period.

 

X.                                    Stock Exchange shall mean NASDAQ, the American
Stock Exchange or the New York Stock Exchange.

 

A-4

 

PLAN HISTORY

 

	
  January 29, 2009

  	
  Board adopts Plan with
  a reserve of 1,250,000 shares.

  
	
   

  	
   

  
	
  April 23, 2009

  	
  Stockholders approve
  Plan.Exhibit 10.3

 

SILICON
LABORATORIES INC.

2009
STOCK INCENTIVE PLAN

 

RESTRICTED
STOCK UNITS GRANT NOTICE AND 

RESTRICTED
STOCK UNITS AWARD AGREEMENT

U.S. PARTICIPANTS

 

Silicon
Laboratories Inc., a Delaware corporation (the “Company”), pursuant
to its 2009 Stock Incentive Plan (the “Plan”), hereby
grants to the holder listed below (the “Participant”), an award
of Restricted Stock Units, each of which is a bookkeeping entry representing
the equivalent in value of one (1) Share, on the terms and conditions set
forth herein and in the Restricted Stock Units Award Agreement attached hereto
(the “Award Agreement”) and the
Plan, which are incorporated herein by reference.  Unless otherwise defined herein, the terms
defined in the Plan shall have the same defined meanings in this Grant Notice
and the Award Agreement.

 

	
  Participant:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Grant Date:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Number of Restricted Stock
  Units:

  	
   

  	
                           ,
  subject to adjustment as provided by the Award Agreement.

  
	
   

  	
   

  	
   

  
	
  Vesting Commencement Date:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Settlement Date:

  	
   

  	
  For each Restricted Stock Unit, except as otherwise
  provided by the Award Agreement, the date on which such unit vests in
  accordance with the vesting schedule set forth below.

  
	
   

  	
   

  	
   

  
	
  Vesting Schedule:

  	
   

  	
  Except as provided in the
  Award Agreement and provided that the Participant’s Service has not
  terminated prior to the relevant date, the Restricted Stock Units shall vest
  and become nonforfeitable in accordance with the following schedule:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  .

  

 

By his or her signature below or by electronic acceptance or authentication
in a form authorized by the Company, the Participant agrees to be bound
by the terms and conditions of the Plan, the Award Agreement and this Grant
Notice.  The Participant has reviewed the
Award Agreement, the Plan and this Grant Notice in their entirety, has had an
opportunity to obtain the advice of counsel prior to executing this Grant
Notice and fully understands all provisions of this Grant Notice, the Award
Agreement and the Plan.  The Participant
hereby agrees to accept as binding, conclusive and final all decisions or
interpretations of the Committee upon any questions arising under the Plan or
relating to the Restricted Stock Units.

 

	
  SILICON LABORATORIES INC.

  	
  PARTICIPANT

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  
	
  Print Name:

  	
   

  	
   

  	
  Print Name:

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
   

  	
  Address:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

SILICON
LABORATORIES INC.

2009
STOCK INCENTIVE PLAN

 

RESTRICTED STOCK UNITS AWARD AGREEMENT

U.S. PARTICIPANTS

 

Silicon
Laboratories Inc. (the “Company”)
has granted to the Participant named in the Restricted Stock Units Grant Notice
(the “Grant Notice”) to which this Restricted Stock Units
Award Agreement (this “Award
Agreement”) is attached an Award consisting of Restricted
Stock Units subject to the terms and conditions set forth in the Grant Notice
and this Award Agreement.  The Award has
been granted pursuant to the Silicon Laboratories Inc. 2009 Stock Incentive
Plan (the “Plan”),
as amended to the Grant Date, the provisions of which are incorporated herein
by reference.

 

Unless otherwise defined herein or in the Grant Notice, capitalized
terms shall have the meanings assigned under the Plan.

 

1.                                      THE
AWARD.

 

The
Company hereby awards to the Participant, Restricted Stock Units under the
Plan.  Subject to the terms of this Award
Agreement and the Plan, each Restricted Stock Unit represents a right to
receive one (1) share of Common Stock (a “Share”)
on the applicable vesting date.  The
number of Shares subject to this Award, the applicable vesting schedule for the
Restricted Stock Units, the dates on which the Shares underlying the Restricted
Stock Units will be issued, and the remaining terms and conditions are set
forth in the Grant Notice and this Award Agreement.  Unless and until the Restricted Stock Units
have vested in accordance with the vesting schedule set forth in the Grant
Notice, the Participant will have no right to settlement of such Restricted
Stock Units.  Prior to settlement of any
vested Restricted Stock Units, such Restricted Stock Units will represent an
unfunded and unsecured obligation of the Company.

 

2.                                      VESTING
OF RESTRICTED STOCK UNITS.

 

2.1                               Normal Vesting.  Except as otherwise provided in this Award Agreement, the Restricted
Stock Units shall vest as provided in the Grant Notice.

 

2.2                               Leave of Absence / Part-Time
Work.  Unless otherwise determined by the Committee, the following provisions
shall apply upon the Participant’s commencement of an authorized leave of
absence:

 

(a)           The vesting schedule
in effect under the Grant Notice shall be frozen as of the first fifteenth (15th) day of a month immediately
following the commencement of the authorized leave, and the number of
Restricted Stock Units subject thereto shall not vest for any additional
installments during the period Participant remains on such leave.  Vesting of the Restricted Stock Units shall
resume upon the first fifteenth (15th) day of a month immediately following the
Participant’s resumption of active Service.

 

(b)           Should the
Participant resume active Service within sixty (60) days after the start date
of the authorized leave, the Participant shall, for purposes of the vesting
schedule set forth in the Grant Notice, receive vesting credit for the entire
period of such leave.  If the Participant
does not resume active Service within such sixty (60)-day period, then no
vesting credit shall be given for the period of such leave.

 

2

 

(c)           Part-Time
Work.  If the Participant
commences working on a part-time basis, then the vesting schedule specified in
the Grant Notice may be adjusted in accordance with the Company’s part-time
work policy or the terms of an agreement between the Participant and the
Company pertaining to the Participant’s part-time schedule.

 

3.                                      TERMINATION
OF SERVICE.

 

3.1          General Rule.  In
the event that the Participant ceases to provide services to the Company (or
any Subsidiary or Affiliate) in the capacity of an Employee, Director or
Consultant (collectively referred to herein as “Service”)
for any reason, with or without cause, other than by reason of the Participant’s
death, the Participant shall forfeit and the Company shall automatically
reacquire all Restricted Stock Units which are not, as of the time of such
termination, vested, and the Participant shall not be entitled to any payment
therefor.

 

3.2          Death of the Participant. 
Should the Participant cease Service by reason of his or her death, the
vesting of the Restricted Stock Units shall be accelerated in full and the
total number of Restricted Stock Units subject to the Award shall be deemed
vested effective as of the date of the Participant’s death.  The Shares due in settlement of such
Restricted Stock Units shall be issued to the personal representative of the
Participant’s estate, the person or persons to whom the Award is transferred
pursuant to the Participant’s will or in accordance with the laws of descent
and distribution (collectively referred to herein as the “Participant’s
Heirs”).

 

4.                                      SETTLEMENT
OF THE AWARD.

 

4.1          Issuance of Shares of Common Stock.  Subject to the provisions of Section 4.3
and Section 5 below, the Company shall issue to the Participant (or, if
applicable, the Participant’s Heirs), on the vesting date, or as soon as
practicable thereafter, with respect to each Restricted Stock Unit to be
settled on such date (but in no event later than March 15th of the year
following the calendar year in which such Restricted Stock Unit vests), one (1) Share;  Shares issued in settlement of Restricted
Stock Units shall not be subject to any restriction on transfer other than any
such restriction as may be required pursuant to Section 4.3.

 

4.2          Beneficial Ownership of Shares;
Certificate Registration.  The
Participant hereby authorizes the Company, in its sole discretion, to deposit
for the benefit of the Participant with a Company-designated brokerage firm or,
at the Company’s discretion, any other broker with which the Participant has an
account relationship of which the Company has notice any or all Shares acquired
by the Participant pursuant to the settlement of the Award.  Except as provided by the preceding sentence,
a certificate for the Shares as to which the Award is settled shall be
registered in the name of the Participant, or, if applicable, in the names of
the Participant’s Heirs.

 

4.3          Restrictions on Grant
of the Award and Issuance of Shares.  The
grant of the Award and issuance of shares of Common Stock upon settlement of
the Award shall be subject to compliance with all applicable requirements of
U.S. federal, state or foreign law with respect to such securities.  No Shares may be issued hereunder if the
issuance of such Shares would constitute a violation of any applicable U.S.
federal, state or foreign securities laws or other laws or regulations or the
requirements of any stock exchange or market system upon which the Common Stock
may then be listed.  The inability of the
Company to obtain from any regulatory body having jurisdiction the authority,
if any, deemed by the Company’s legal counsel to be necessary to the lawful
issuance of any Shares subject to the Award shall relieve the Company of any
liability in respect of the failure to issue such Shares as to which such
requisite authority shall not have been obtained.  As a condition to the settlement of the
Award, the Company may require the Participant to satisfy any qualifications that may be necessary or 

 

3

 

appropriate,
to evidence compliance with any applicable law or regulation and to make any
representation or warranty with respect thereto as may be requested by the
Company.  Further, regardless of whether
the transfer or issuance of the Shares to be issued pursuant to the Restricted
Stock Units has been registered under the Securities Act or has been registered
or qualified under the securities laws of any State, the Company may impose additional
restrictions upon the sale, pledge, or other transfer of the Shares (including
the placement of appropriate legends on stock certificates and the issuance of
stop-transfer instructions to the Company’s transfer agent) if, in the judgment
of the Company and the Company’s counsel, such restrictions are necessary in
order to achieve compliance with the provisions of the Securities Act, the
securities laws of any State, or any other law.

 

4.4          Fractional Shares.  The Company shall not be required to issue
fractional Shares upon the settlement of the Award.

 

5.                                      TAX
WITHHOLDING AND ADVICE.

 

5.1          In General. 
Subject to Section 5.2, at the time the Grant Notice is executed,
or at any time thereafter as requested by the Company, the Participant hereby authorizes withholding from payroll
and any other amounts payable to the Participant, and otherwise agrees to make adequate provision for, any sums
required to satisfy the U.S. federal, state, and local taxes and (if
applicable) taxes imposed by jurisdictions outside of the United States
(including income tax, social insurance contributions, payment on account and
any other taxes) and required by law to be withheld with respect to any taxable
event arising as a result of the Participant’s participation in the Plan
(referred to herein as “Tax-Related Items”).

 

5.2          Withholding of Taxes.  The
Company or any Subsidiary or Affiliate, as appropriate, shall have the
authority and the right to deduct or withhold, or require the Participant to
remit to the Company (or to the applicable Subsidiary or Affiliate), an amount
sufficient to satisfy applicable Tax-Related Items or to take such other action
as may be necessary in the opinion of the Company or a Subsidiary or Affiliate,
as appropriate, to satisfy such Tax-Related Items (including hypothetical
withholding tax amounts if the Participant is covered under a Company tax
equalization policy).  In this regard,
the Participant authorizes the Company and/or the applicable Subsidiary or Affiliate,
or their respective agents, at their discretion, to satisfy the obligations
with regard to all Tax-Related Items by one or a combination of the following:

 

(a)           withholding from the
Participant’s wages or other cash compensation paid to the Participant by the
Company or the applicable Subsidiary or Affiliate; or

 

(b)           withholding from
proceeds of the sale of Shares acquired upon vesting and settlement of the
Restricted Stock Units, either through a voluntary sale or through a mandatory
sale arranged by the Company (on the Participant’s behalf pursuant to this
authorization); or

 

(c)           withholding in
Shares to be issued upon vesting and settlement of the Restricted Stock Units;
or

 

(d)           direct payment from the Participant.

 

To avoid negative
accounting treatment, the Company may withhold or account for Tax-Related Items
by considering applicable minimum statutory withholding amounts or other
applicable withholding rates.  If the
Participant is covered by a Company tax equalization policy, the Participant agrees
to pay to the Company any additional hypothetical tax obligation calculated and
paid under the terms and conditions of such tax equalization policy.  Finally, the Participant shall pay to the
Company or the 

 

4

 

Subsidiary or Affiliate, as appropriate, any amount of
Tax-Related Items that the Company or the applicable Subsidiary or Affiliate
may be required to withhold as a result of his or her participation in the Plan
that cannot be satisfied by the means previously described.  The Company may refuse to issue or deliver
the Shares that may be issued in connection with the settlement of the
Restricted Stock Units if the Participant fails to comply with his or her
Tax-Related Items obligations.

 

5.3          Tax Advice.  The
Participant represents, warrants and acknowledges that the Company has made no
warranties or representations to the
Participant with respect to the income tax consequences of the transactions
contemplated by this Award Agreement, and the Participant is in no manner
relying on the Company or the Company’s representatives for an assessment of
such tax consequences.  THE PARTICIPANT
UNDERSTANDS THAT THE TAX LAWS AND REGULATIONS ARE SUBJECT TO CHANGE.  THE PARTICIPANT SHOULD CONSULT HIS OR HER OWN
TAX ADVISOR REGARDING ANY RESTRICTED STOCK UNITS.  NOTHING STATED HEREIN IS INTENDED OR WRITTEN
TO BE USED, AND CANNOT BE USED, FOR THE PURPOSE OF AVOIDING TAXPAYER PENALTIES.

 

6.                                      AUTHORIZATION
TO RELEASE NECESSARY PERSONAL INFORMATION.

 

The
Participant hereby authorizes and directs the Participant’s employer to
collect, use and transfer in electronic or other form, any personal information
(the “Data”) regarding the
Participant’s Service, the nature and amount of the Participant’s compensation
and the fact and conditions of the Participant’s participation in the Plan
(including, but not limited to, the Participant’s name, home address, telephone
number, date of birth, social security number (or any other social or national
identification number), salary, nationality, job title, number of Shares held
and the details of all restricted stock units or any other entitlement to
Shares awarded, cancelled, exercised, vested, unvested or outstanding) for the
purpose of implementing, administering and managing the Participant’s
participation in the Plan.  The
Participant understands that the Data may be transferred to the Company or any
of its Subsidiaries or Affiliates, or to any third parties assisting in the
implementation, administration and management of the Plan, including any
requisite transfer to a brokerage firm or other third party assisting with
administration of the Award or with whom Shares acquired upon settlement of
this Award or cash from the sale of such Shares may be deposited.  The Participant acknowledges that recipients
of the Data may be located in different countries, and those countries may have
data privacy laws and protections different from those in the country of the
Participant’s residence. Furthermore, the Participant acknowledges and
understands that the transfer of the Data to the Company or any of its
Subsidiaries or Affiliates, or to any third parties is necessary for
Participant’s participation in the Plan. 
The Participant may at any time withdraw the consents herein, by
contacting the Company’s stock administration department in writing. The
Participant further acknowledges that withdrawal of consent may affect the
Participant’s ability to realize benefits from the Award, and the Participant’s
ability to participate in the Plan.

 

7.                                      EFFECT OF CHANGE IN CONTROL ON
AWARD.

 

7.1          In the event of a
Change in Control, the vesting of the Restricted Stock Units shall be
accelerated in full and the total number of Restricted Stock Units subject to
the Award shall be deemed vested effective as of the date of the Change in
Control, provided that the Participant’s Service has not terminated prior to
such date.  No such acceleration,
however, shall occur if and to the extent: (i) these Restricted Stock
Units are, in connection with the Change in Control, either assumed by the
successor corporation (or parent thereof) or replaced with comparable
restricted stock units of the successor corporation (or parent thereof) or (ii) these
Restricted Stock Units are replaced with a cash incentive program of the
successor corporation which preserves the Fair Market Value of the Restricted
Stock Units at the time of the Change in Control and provides for subsequent
pay-out in accordance with the vesting schedule set forth in the Grant
Notice.  The determination of the
comparability of restricted 

 

5

 

stock units under clause (i) shall
be made by the Committee, and such determination shall be final, binding and
conclusive.  This Agreement shall not in
any way affect the right of the Company to adjust, reclassify, reorganize or
otherwise change its capital or business structure or to merge, consolidate,
dissolve, liquidate, sell or transfer all or any part of its business or
assets.

 

7.2          In the event that
the Restricted Stock Units are, in connection with the Change in Control,
either assumed by the successor corporation (or parent thereof) or replaced
with comparable restricted stock units of the successor corporation (or parent
thereof) and, within eighteen (18) months of the effective date of the Change
in Control, the Participant’s Service terminates due to Involuntary
Termination, the vesting of the Restricted Stock Units shall be accelerated in
full and the total number of Restricted Stock Units subject to the Award shall
be deemed vested effective as of the date of the Participant’s Involuntary
Termination.

 

8.                                      ADJUSTMENTS
FOR CHANGES IN CAPITAL STRUCTURE.

 

The number of Restricted
Stock Units awarded pursuant to this Award Agreement is subject to adjustment
as provided in the Article 11 of the Plan. 
The Participant shall be notified of such adjustment and such adjustment
shall be binding upon the Company and the Participant.

 

9.                                      NO
ENTITLEMENT OR CLAIMS FOR COMPENSATION.

 

9.1          The Participant’s rights, if any, in respect
of or in connection with the Restricted Stock Units are derived solely from the
discretionary decision of the Company to permit the Participant to participate
in the Plan and to benefit from a discretionary Award.  By accepting the Restricted Stock Units, the
Participant expressly acknowledges that there is no obligation on the part of
the Company to continue the Plan and/or grant any additional restricted stock
units or other Awards to the Participant. 
The Restricted Stock Units are not intended to be compensation of a
continuing or recurring nature, or part of the Participant’s normal or expected
compensation, and in no way represents any portion of the Participant’s salary,
compensation, or other remuneration for purposes of pension benefits,
severance, redundancy, resignation or any other purpose.

 

9.2          Neither the Plan nor the Restricted Stock
Units shall be deemed to give the Participant a right to remain an Employee,
Director or Consultant of the Company, a Subsidiary or an Affiliate.  The Company and its Subsidiaries and
Affiliates reserve the right to terminate the Service of the Participant at any
time, with or without cause, and for any reason, subject to applicable laws,
the Company’s Certificate  of
Incorporation  and Bylaws and a written
employment agreement (if any), and the Participant shall be deemed irrevocably
to have waived any claim to damages or specific performance for breach of
contract or dismissal, compensation for loss of office, tort or otherwise with
respect to the Plan, the Restricted Stock Units or any other outstanding Award
that is forfeited and/or is terminated by its terms or to any future Award.

 

10.                               RIGHTS
AS A STOCKHOLDER.

 

The Participant shall have no rights as a stockholder with
respect to any Shares which may be issued in settlement of this Award until the
date of the issuance of a certificate for such Shares (as evidenced by the
appropriate entry on the books of the Company or of a duly authorized transfer
agent of the Company).  No adjustment
shall be made for dividends, dividend equivalents, distributions or other
rights for which the record date is prior to the date such certificate is
issued, except as provided in Section 8.

 

6

 

11.                               MISCELLANEOUS
PROVISIONS.

 

11.1        Amendment.  The
Committee may amend this Award Agreement at any time; provided, however, that
no such amendment may adversely affect the Participant’s rights under this
Award Agreement without the consent of the Participant, except
to the extent such amendment is necessary to comply with applicable law,
including, but not limited to, Code Section 409A.  No
amendment or addition to this Award Agreement shall be effective unless in
writing.

 

11.2        Nontransferability of the
Award.  Prior to the issuance of Shares on the
applicable Settlement Date, no right or interest of the Participant in the
Award nor any Shares issuable on settlement of the Award shall be in any manner
pledged, encumbered, or hypothecated to or in favor of any party other than the
Company or a Subsidiary or Affiliate or shall become subject to any lien,
obligation, or liability of such Participant to any other party other than the
Company, or a Subsidiary or Affiliate. 
Except as otherwise provided by the Committee, no Award shall be
assigned, transferred or otherwise disposed of other than by will or the laws
of descent and distribution.  All rights
with respect to the Award shall be exercisable during the Participant’s
lifetime only by the Participant or the Participant’s guardian or legal
representative.

 

11.3        Further Instruments.  The parties
hereto agree to execute such further instruments and to take such further
action as may reasonably be necessary to carry out the intent of this Award
Agreement.

 

11.4        Binding Effect.  This
Award Agreement shall inure to the benefit of the successors and assigns of the
Company and, subject to the restrictions on transfer set forth herein, be
binding upon the Participant and the Participant’s heirs, executors,
administrators, successors and assigns.

 

11.5        Notices.  Any notice required to be given or delivered
to the Company under the terms of this Award Agreement shall be in writing and
addressed to the Company at its principal corporate offices.  Any notice required to be given or delivered
to the Participant shall be in writing and addressed to the Participant at the
address maintained for the Participant in the Company’s records or at the
address of the local office of the Company or of a Subsidiary or Affiliate at
which the Participant works.

 

11.6        Construction of Award
Agreement.  The Grant Notice, this Award Agreement, and
the Restricted Stock Units evidenced hereby (i) are made and granted
pursuant to the Plan and are in all respects limited by and subject to the
terms of the Plan, and (ii) constitute the entire agreement between the
Participant and the Company on the subject matter hereof and supersede all
proposals, written or oral, and all other communications between the parties
related to the subject matter.  All
decisions of the Committee with respect to any question or issue arising under
the Grant Notice, this Award Agreement or the Plan shall be conclusive and
binding on all persons having an interest in the Restricted Stock Units.

 

11.7        Governing Law.  The
interpretation, performance and enforcement of this Award Agreement shall be
governed by the laws of the State of Texas, U.S.A. without regard to the
conflict-of-laws rules thereof or of any other jurisdiction.

 

11.8        Section 409A. 
Notwithstanding any other provision of the Plan, this Award Agreement or
the Grant Notice, the Plan, this Agreement and the Grant Notice shall be
interpreted in accordance with, and incorporate the terms and conditions
required by, Code Section 409A (together with any Department of
Treasury regulations and other interpretive guidance issued thereunder,
including without limitation any such regulations or other guidance that may be
issued after the date hereof).  The 

 

7

 

vesting and settlement of
Restricted Stock Units awarded pursuant to this Award Agreement are intended to
qualify for the “short-term deferral” exemption from Section 409A of the
Code.  The Company reserves the right, to
the extent the Company deems necessary or advisable in its sole discretion, to
unilaterally amend or modify the Plan and/or this Award Agreement to ensure
that the Restricted Stock Units qualify for exemption from or comply with Section 409A
of the Code; provided, however,
that the Company makes no representations that the Restricted Stock Units will
be exempt from Section 409A of the Code and makes no undertaking to
preclude Section 409A of the Code from applying to these Restricted Stock
Units.

 

11.9        Administration.  The
Committee shall have the power to interpret the Plan and this Award Agreement
and to adopt such rules for the administration, interpretation and
application of the Plan as are consistent therewith and to interpret, amend or
revoke any such rules.  All actions taken
and all interpretations and determinations made by the Committee in good faith
shall be final and binding upon the Participant, the Company and all other
interested persons.  No member of the
Committee or the Board shall be personally liable for any action, determination
or interpretation made in good faith with respect to the Plan, this Award
Agreement or the Restricted Stock Units.

 

11.10      Counterparts.  The
Grant Notice may be executed in counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same
instrument.

 

11.11      Severability.  If any provision of this Award Agreement is
held to be unenforceable for any reason, it shall be adjusted rather than
voided, if possible, in order to achieve the intent of the parties to the
extent possible.  In any event, all other
provisions of this Award Agreement shall be deemed valid and enforceable to the
full extent possible.

 

11.12      Relocation Outside the United
States.  If the Participant
relocates to a country outside the United States, the Company reserves the right to impose other
requirements on the Participant’s participation in the Plan, on the Restricted
Stock Units and on any Shares acquired under the Plan, to the extent the
Company determines necessary or advisable in order to comply with local law or
facilitate the administration of the Plan, and to require the Participant to
sign any additional agreements or undertakings that may be necessary to
accomplish the foregoing.

 

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