Document:

Exhibit
10.8a

 

[Execution
Copy]

 

SHAREHOLDERS
AGREEMENT

 

This
Shareholders Agreement (this “Agreement”)
is made as of this 9th day of June, 2008 by and among Steel Dynamics, Inc.,
an Indiana corporation (together with any successor thereto, the “SDI”) and the shareholders of SDI
listed on the signature pages hereto (the “Shareholders”)
under the following circumstances:

 

A.            Carolina
Investment Company, LLC, an Indiana limited liability company, as the buyer (“Buyer”), ASAP Investors, LLC, a
North Carolina limited liability company (“ASAP Investors”)
and CRG Investors, LLC, a South Carolina limited liability company (“CRG Investors”), as sellers (“Sellers”), the Shareholders, as the
direct or indirect owners of all of the equity interests of the Sellers and Recycle
South, LLC, a Delaware limited liability company (the “Company”)
are parties to a Membership Purchase Agreement dated May 8, 2008 (the “Purchase Agreement”) pursuant to
which the Buyer purchased all the Sellers’ Membership Interest (as that term is
defined in the Purchase Agreement) in the Company and SDI issued shares of its
Common Stock (as defined below) to the Shareholders; and

 

B.            Buyer is a wholly owned subsidiary
of OmniSource Corporation, an Indiana corporation, which, in turn, is a wholly
owned subsidiary of SDI; and

 

C.            This Agreement is
being executed and delivered in connection with the closing of the transactions
contemplated by the Purchase Agreement.

 

NOW
THEREFORE, in consideration of the foregoing and the mutual
covenants and agreements hereinafter set forth, the parties hereto agree as
follows:

 

SECTION 1

DEFINITIONS

 

1.1          Construction of Terms.  As used herein, the masculine, feminine or
neuter gender, and the singular or plural number, shall be deemed to be or to
include the other genders or numbers, as the case may be, whenever the context
so indicates or requires.

 

1.2          Defined Terms.  In addition
to the words elsewhere defined in this Agreement, the following capitalized
terms shall have the following meanings:

 

“Affiliate” of any Person means a Person that,
directly or indirectly, through one or more intermediaries, controls, is
controlled by or is under common control with the first mentioned Person.  A Person shall be deemed to control another
Person if such first Person possesses directly or indirectly the power to
direct, or cause the direction of, the management and policies of the second
Person, whether through the ownership of voting securities, by contract or
otherwise.

 

“Broker’s Transaction” means a “broker’s
transaction” as defined in Rule 144 promulgated under the Securities Act.

 

“Closing Date” means the closing date of the
transactions contemplated by the Purchase Agreement.

 

 

“Commission” means the United States Securities
and Exchange Commission or any other federal agency at the time administering
the Securities Act and the Exchange Act.

 

“Common Stock”  means SDI’s Common Stock, par
value $0.005  per share, and any other
securities into which or for which such shares may be converted or exchanged
pursuant to a plan of recapitalization, reorganization, merger, sale of assets
or otherwise.

 

“Exchange Act” means the Securities Exchange Act
of 1934, as amended from time to time, and the rules and regulations of
the Commission thereunder.

 

“Hedging Transaction” means any short sale
(whether or not against the box) or purchase, sale or grant of any right
(including without limitation, any put or call option) with respect to any
security (other than a broad-based market basket or index) that includes,
relates to or derives any significant part of its value from SDI’s Common
Stock.

 

“Person” means any individual, corporation,
association, partnership, limited liability company, joint venture, estate,
trust or unincorporated organization or any government or any agency or political
subdivision thereof.

 

“Registrable Securities” means the Shares held by
the Shareholders and any other securities issued or issuable with respect to
any such shares by way of a stock dividend or stock split or in connection with
a combination of shares, recapitalization, merger, consolidation or other
reorganization; provided, however, that notwithstanding anything
to the contrary contained herein, “Registrable Securities”
shall not at any time include any shares of Common Stock held by a Shareholder
when all shares of Common Stock held by such Shareholder may be sold in a
three-month period without restriction pursuant to Rule 144 promulgated
under the Securities Act.

 

“Securities Act” means the Securities Act of
1933, as amended from time to time, and the rules and regulations
promulgated thereunder.

 

“Shares”
means the shares of Common Stock issued by SDI to the Shareholders at the
closing of the transactions contemplated by the Purchase Agreement, including
shares issued in the name of the Sellers and held pursuant to the escrow
agreement executed and delivered on the Closing Date.

 

“Transfer” means any direct or indirect transfer,
donation, sale, assignment, pledge, hypothecation, grant of a security interest
in or other disposal or attempted disposal of all or any portion of a security,
of any rights or interests therein or the disposition of the economic interest
therein, whether by merger, operation of law or otherwise, including pursuant
to any Hedging Transaction.  “Transferred” means the accomplishment
of a Transfer, and “Transferee” means the
recipient of a Transfer.

 

SECTION 2

RESTRICTIONS ON TRANSFER

 

2.1          Restrictions on Transfer.  Each Shareholder agrees that he, she or it
will not Transfer all or any portion of the Shares, except in connection with,
and strictly in compliance with the conditions of, any of the following:

 

2

 

(a)           Transfers
of Unrestricted Shares as described in Section 2.2;

 

(b)           Transfers
by a Shareholder to (i) his or her spouse, children, grandchildren,
parents, siblings or siblings’ children (each, a “Family
Member”), (ii) a trust, corporation, limited partnership,
limited liability company or other entity organized solely for the benefit of
such Shareholder  and/or any Family Member, or (iii) a
tax-exempt foundation established and funded solely by the Shareholders and
their Family Members or any of them; provided, that (x) the
Transfer is exempt from the registration requirements of the Securities Act and
(y) unless the Shares relating to such Transfer are Unrestricted Shares
(as defined below) the Transferee shall have executed a Joinder Agreement
substantially in the form of Exhibit A attached hereto; or

 

(c)           Transfers
upon the death of a Shareholder  to his or her
heirs, executors or administrators or to a trust under his or her will or
Transfers between such Shareholder and his or her guardian or conservator, provided
that (x) the Transfer is exempt from the registration requirements of the
Securities Act and (y) unless the Shares relating to such Transfer are
Unrestricted Shares, the Transferee shall have executed a Joinder Agreement
substantially in the form of Exhibit A attached hereto.

 

Any
permitted Transferee described in the preceding clauses (b) or (c) shall
be referred to herein as a “Permitted Transferee.”  Notwithstanding anything to the contrary in
this Agreement or any failure to execute a Joinder Agreement as contemplated
hereby, Permitted Transferees shall take any Shares so Transferred subject to
all provisions of this Agreement as if such Shares were still held by the
transferor, whether or not they so agree with the transferor and/or SDI.

 

2.2          Release of Restrictions.  Notwithstanding Section 2.1, a
Shareholder may Transfer all of the Shares issued to such Shareholder on the
Closing Date at any time on or after the date that is six (6) months
following the Closing Date.  Any Shares
that may be Transferred by a Shareholder free of the restrictions set forth in
this Section 2 shall be referred to as the “Unrestricted
Shares.”

 

2.3          Prohibited Transfers.  If any Transfer of Shares by a Shareholder is
made or attempted contrary to the provisions of this Agreement, such purported
Transfer shall be void  ab  initio.  SDI shall have, in addition to any other
legal or equitable remedies which it may have, the right to enforce the
provisions of this Section 2 by actions for specific performance (to the
extent permitted by law).  SDI shall have
the right to refuse to recognize any Transferee as one of its shareholders for
any purpose.

 

SECTION 3

SHELF REGISTRATION

 

3.1          Shelf Registration.

 

(a)           By
the earlier of (i) the date that is one hundred eighty (180) days after
the Closing Date or (ii) December 31, 2008, SDI shall file a shelf
registration statement pursuant to Rule 415 under the Securities Act (the “Shelf Registration Statement”),
which Shelf Registration Statement shall provide for resales of all Registrable
Securities held by the Shareholders.  SDI
represents and warrants to the Shareholders that SDI is a Well-Known Seasoned
Issuer as such term is defined in the regulations promulgated under the
Securities Act 

 

3

 

qualified to file automatically-effective shelf
registration statements under the Securities Act and rules and regulations
promulgated thereunder and that the Shelf Registration Statement will be
automatically effective when filed with the Commission.

 

(b)           SDI
shall use its commercially reasonable efforts to maintain its status as a
Well-Known Seasoned Issuer qualified to file automatically-effective shelf
registration statements, including the Shelf Registration Statement, and keep
such Shelf Registration Statement continuously effective, supplemented and
amended to the extent necessary to ensure that it is available for resales of
the Shares held by the Shareholders and to ensure that it conforms with the
requirements of this Agreement, the Securities Act and the rules and
regulations of the Commission as announced from time to time, until the
earliest to occur of (i) the three year anniversary of the Closing Date, (ii) such
time when all the Shares covered by such Shelf Registration Statement  have been sold, or (iii) such time when
the Shareholders no longer hold any Registrable Securities.

 

3.2          Provision by Holders of Certain
Information in Connection with the Shelf Registration Statement.
No Shareholder may include any of its Shares in any Shelf Registration
Statement pursuant to this Agreement unless and until such Shareholder
furnishes to SDI in writing, promptly after receipt of a request therefor, such
information as SDI may reasonably request for use in connection with any Shelf
Registration Statement or prospectus or preliminary prospectus included
therein. Each Shareholder agrees to furnish promptly to SDI all information
with respect to such Shareholder required to be disclosed in order to make the
information previously furnished to SDI by such Shareholder not materially
misleading.

 

3.3          Further Obligations of SDI.  In connection with the preparation and filing
of the Shelf Registration Statement, SDI shall:

 

(a)           furnish
to each selling Shareholder such copies of each preliminary and final
prospectus and such other documents as such Shareholder may reasonably request
to facilitate the resale of its Registrable Securities;

 

(b)           use
its commercially reasonable efforts to register or qualify the securities
covered by the Shelf Registration Statement under the securities or “blue sky”
laws of such jurisdictions as any selling Shareholder may reasonably request;
provided that SDI shall not for any such purpose be required to qualify to do
business as a foreign corporation in any jurisdiction wherein it is not so
qualified;

 

(c)           promptly
notify each selling Shareholder, at any time when a prospectus relating to his,
her or its Registrable Securities is required to be delivered under the
Securities Act, of the happening of any event as a result of which such
prospectus contains an untrue statement of a material fact or omits any
material fact necessary to make the statements therein not misleading, and, at
the request of any such selling Shareholder, promptly prepare a supplement or
amendment to such prospectus so that, as thereafter delivered to the purchasers
of such Registrable Securities, such prospectus will not contain any untrue
statement of a material fact or omit to state any material fact necessary to
make the statements therein not misleading;

 

(d)           use
commercially reasonable efforts to list the Registrable Securities included in
the Shelf Registration Statement on each securities exchange or quotation
system on which similar securities issued by SDI are then listed or quoted;

 

4

 

(e)           otherwise
cooperate with the Commission and other regulatory agencies and take all
actions and execute and deliver or cause to be executed and delivered all
documents necessary to effect the registration of any Registrable Securities
pursuant to the Shelf Registration Statement.

 

3.4          Registration Expenses.

 

(a)           SDI
shall bear its own expenses in connection with the performance of its
obligations hereunder, including: (i) all Commission registration and
filing fees and expenses; (ii) all fees and expenses of compliance with
federal securities and state securities or “blue sky” laws; (iii) all
expenses of printing any prospectus included in the Shelf Registration
Statement; (iv) all application and filing fees in connection with listing
the Registrable Securities on a securities exchange or quotation system
pursuant to the requirements thereof; and (v) all fees and disbursements
of independent certified public accountants of SDI.

 

(b)   The
Shareholders shall bear their own expenses, including any discounts and
commissions, in connection with the Shelf Registration Statement and the sale
of the Registrable Securities thereunder.

 

SECTION 4

GENERAL

 

4.1          Amendments, Waivers and Consents.  For the purposes of this Agreement and all
agreements executed pursuant hereto, no course of dealing between or among any
of the parties hereto and no delay on the part of any party hereto in
exercising any rights hereunder or thereunder shall operate as a waiver of the
rights hereof and thereof.  This
Agreement may be amended, modified or terminated and any provision hereof may
be waived by the joint written consent of SDI and a majority-in-interest  of the Shareholders, in each case based on their respective
holdings of Shares, provided, that any party may waive any provision
hereof intended for its benefit by written consent.  Any amendment, modification, termination or
waiver effected in accordance with this Section 4.1 shall be binding upon
all parties even if they do not execute such written consent, provided that
such amendment, modification, termination or waiver does not disproportionately
disadvantage or unfairly discriminate against any non-consenting Shareholder.

 

4.2          Legend on Securities.  SDI and each of the Shareholders acknowledge
and agree that substantially the following legend shall be typed on each
certificate evidencing any of the Shares held at any time by a Shareholder
until such Shares are deemed Unrestricted Shares:

 

THE SECURITIES
REPRESENTED HEREBY ARE SUBJECT TO THE PROVISIONS OF A SHAREHOLDERS AGREEMENT
DATED AS OF JUNE 9, 2008 AS AMENDED FROM TIME TO TIME, INCLUDING THEREIN CERTAIN
RESTRICTIONS ON TRANSFER.  A COMPLETE AND
CORRECT COPY OF SUCH AGREEMENT IS AVAILABLE FOR INSPECTION AT THE PRINCIPAL
OFFICE OF STEEL DYNAMICS, INC. AND WILL BE FURNISHED UPON WRITTEN REQUEST AND
WITHOUT CHARGE.

 

The Shareholders consent to SDI
making a notation in its records and giving instructions to its transfer agent
in order to implement the restrictions on transfer set forth herein.  At such time as 

 

5

 

Shares become Unrestricted Shares,
SDI shall instruct its transfer agent to issue new certificates without such
legends upon the written request of any Shareholder.

 

4.3          Notices and Demands.  Any notice or demand which, by any provision
of this Agreement or any agreement, document or instrument executed pursuant
hereto or thereto, except as otherwise provided therein, is required or
provided to be given shall be deemed to have been sufficiently given and
received for all purposes when delivered by hand or facsimile or five (5) business
days after being sent by certified or registered mail, postage and charges
prepaid, return receipt requested, or two (2) business days after being
sent by overnight delivery providing receipt of delivery, to:

 

(a)           If
to SDI, 6714 Pointe Inverness Way, Suite 200, Fort Wayne, Indiana 46804, Attn: Theresa E. Wagler, Chief Financial Officer,  or at such other address designated by SDI to the
Shareholders in writing, with a copy to Barrett & McNagny LLP, 215 E.
Berry Street, Fort Wayne, IN  46802,  Attn: Robert S. Walters.

 

(b)           if
to the Shareholders at the mailing addresses as shown on the signature pages or
joinder agreement hereto.

 

4.4          Severability.  Whenever possible, each provision of this
Agreement shall be interpreted in such a manner as to be effective and valid
under applicable law, but if any provision of this Agreement shall be deemed
prohibited or invalid under such applicable law, such provision shall be
ineffective to the extent of such prohibition or invalidity, and such
prohibition or invalidity shall not invalidate the remainder of such provision
or the other provisions of this Agreement.

 

4.5          Counterparts.  This Agreement may be executed in multiple
counterparts, each of which shall constitute an original but all of which shall
constitute but one and the same instrument. 
One or more counterparts of this Agreement may be delivered via
telecopier, facsimile or in PDF format by e-mail with the intention that they
shall have the same effect as an original counterpart hereof.

 

4.6          Effect of Heading.  The Section headings herein are for
convenience only and shall not affect the construction hereof.

 

4.7          Governing Law.  This agreement shall be deemed a contract
made under the laws of the State of Indiana and together with the rights and
obligations of the parties hereunder, shall be construed under and governed by
the laws of the State of Indiana, without giving effect to its conflict of laws
principles.

 

4.8          Jurisdiction; Venue; Waiver Of Jury
Trial.

 

(a)           To
the maximum extent permitted by applicable law, the parties hereby irrevocably
agree that any legal action or proceeding arising out of or relating to this
Agreement or any agreements or transactions contemplated hereby, including tort
claims, may be brought only in the North Carolina Business Court in Charlotte,
North Carolina, or if there is no North Carolina Business Court in Charlotte at
the time, in the North Carolina Business Court that is located closest to
Charlotte, North Carolina. If there is not a North Carolina Business Court at
the time, then such proceedings are to be brought in the appropriate courts of
the State of North Carolina in Charlotte, North Carolina or of the United
States of America for the Western District 

 

6

 

of North Carolina. Each of the Parties hereby
expressly submits to the personal jurisdiction and the venue of the
aforementioned courts for the purposes thereof and expressly waives any claim
of improper venue and any claim that those courts are an inconvenient forum.

 

(b)           Each
party hereto hereby waives, to the fullest extent permitted by applicable law,
any right it may have to a trial by jury in respect of any litigation directly
or indirectly arising out of, under or in connection with this Agreement.  Each party hereto (i) certifies that no
representative, agent or attorney of the other party has represented, expressly
or otherwise, that the other party would not, in the event of litigation, seek
to enforce the foregoing waiver and (ii) acknowledges that it and the
other parties hereto have been induced to enter into this Agreement by, among
other things, the mutual waivers and certifications in this Section.

 

4.9          Integration.  This Agreement, including the exhibits,
documents and instruments referred to herein or therein, constitutes the entire
agreement, and supersedes all other prior agreements and understandings, both
written and oral, among the parties with respect to the subject matter hereof.

 

4.10        Successors
and Assigns.  This
Agreement shall be binding upon and inure to the benefit of the respective
successors and permitted assigns of the parties hereto as contemplated
herein.  Neither this Agreement nor the
right provided hereunder may be assigned by any Shareholder without the prior
written consent of SDI, and without such prior written consent any attempted
assignment shall be null and void.

 

4.11        Adjustment.  All references to share amounts and prices
herein shall be equitably adjusted to reflect any stock split, combination,
reorganization, recapitalization, reclassification, stock distribution, stock
dividend or similar event affecting the capital stock of SDI.

 

[Signature Pages Follow]

 

7

 

IN WITNESS WHEREOF, the
parties have executed this Shareholders Agreement as of the date first above
written.

 

 

	
  “SDI”

  	
  STEEL DYNAMICS, INC.,
  an Indiana

  corporation 

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Daniel M. Rifkin

  
	
   

  	
  Its

  	
  EVP

  
				

 

8

 

“SHAREHOLDERS”

 

 

	
   

  	
  /s/
  Frank Brenner

  
	
   

  	
  Frank Brenner

  
	
   

  	
   

  
	
   

  	
  /s/
  Mike Brenner

  
	
   

  	
  Mike Brenner

  
	
   

  	
   

  
	
   

  	
  ESTATE OF MELVIN GORDON

  
	
   

  	
   

  
	
   

  	
    /s/
  Kalman Gordon

  
	
   

  	
  Name:

  	
  /s/
  Saul Gordon

  
	
   

  	
  Title

  	
  Executors

  
	
   

  	
   

  	
   

  
	
   

  	
  ALFRED A. GORDON FAMILY TRUST

  
	
   

  	
   

  
	
   

  	
  /s/
  Richard Gordon

  
	
   

  	
  Name:

  	
  Richard
  Gordon

  
	
   

  	
  Title:

  	
  Trustee

  
	
   

  	
   

  
	
   

  	
  /s/
  Kalman Gordon

  
	
   

  	
  Kalman Gordon

  
	
   

  	
   

  
	
   

  	
  /s/
  Saul Gordon

  
	
   

  	
  Saul Gordon

  
	
   

  	
   

  
	
   

  	
  /s/
  Barry Gordon

  
	
   

  	
  Barry Gordon

  
	
   

  	
   

  
	
   

  	
  /s/
  Craig Gordon

  
	
   

  	
  Craig Gordon

  
	
   

  	
   

  
	
   

  	
  /s/
  Richard Gordon

  
	
   

  	
  Richard Gordon

  
	
   

  	
   

  
	
   

  	
  /s/
  Louis Gordon

  
	
   

  	
  Louis Gordon

  
	
   

  	
   

  
	
   

  	
    /s/
  Charlotte Margolis

  
	
   

  	
  Charlotte Margolis

  
	
   

  	
   

  
	
   

  	
    /s/
  Mark Gordon

  
	
   

  	
  Mark Gordon

  
	
   

  	
   

  
	
   

  	
    /s/
  Wendy Pake

  
	
   

  	
  Wendy Pake

  
				

 

9

 

	
   

  	
  /s/
  Susan Sandler

  
	
   

  	
  Susan Sandler

  
	
   

  	
   

  
	
   

  	
    /s/
  Robert Gordon

  
	
   

  	
  Robert Gordon

  
	
   

  	
   

  
	
   

  	
    /s/
  D. H. Griffin Sr.

  
	
   

  	
  D.H. Griffin Sr.

  
	
   

  	
   

  
	
   

  	
    /s/
  D.H. Griffin Jr.

  
	
   

  	
  D.H. Griffin Jr.

  
	
   

  	
   

  
	
   

  	
  /s/
  Melody London

  
	
   

  	
  Melody London

  
	
   

  	
   

  
	
   

  	
    /s/ Benita
  Mitchell

  
	
   

  	
  Benita Mitchell

  
	
   

  	
   

  
	
   

  	
    /s/ William
  Perry

  
	
   

  	
  William Perry

  
	
   

  	
   

  
	
   

  	
    /s/ Roger
  Ruminski

  
	
   

  	
  Roger Ruminski

  
	
   

  	
   

  
	
   

  	
  /s/
  Keith Rosen

  
	
   

  	
  Keith Rosen

  
	
   

  	
   

  
	
   

  	
  /s/
  Ed Bradley

  
	
   

  	
  Ed Bradley

  
	
   

  	
   

  
	
   

  	
  /s/
  Stephen W. Earp

  
	
   

  	
  Stephen W. Earp

  
	
   

  	
   

  
	
   

  	
  /s/
  Scott D. McDaniel

  
	
   

  	
  Scott D. McDaniel

  
	
   

  	
   

  
	
   

  	
  /s/
  John J. Deschenes

  
	
   

  	
  John J. Deschenes

  
	
   

  	
   

  
	
   

  	
  /s/
  Tim S. Bryan

  
	
   

  	
  Tim S. Bryan

  
	
   

  	
   

  
	
   

  	
    /s/ Nick
  Urban

  
	
   

  	
  Nick Urban

  
	
   

  	
   

  
	
   

  	
  /s/
  Paul D. Siegel

  
	
   

  	
  Paul D. Siegel

  

 

10

 

	
   

  	
    /s/ Steven
  G. Siegel

  
	
   

  	
  Steven G. Siegel

  
	
   

  	
   

  
	
   

  	
    /s/ Kenneth
  L. Siegel

  
	
   

  	
  Kenneth L. Siegel

  
	
   

  	
   

  
	
   

  	
  /s/
  Marvin Siegel

  
	
   

  	
  Marvin Siegel

  
	
   

  	
   

  
	
   

  	
    /s/ Harold
  D. Kennedy

  
	
   

  	
  Harold D. Kennedy

  
	
   

  	
   

  
	
   

  	
    /s/ Jeffrey
  A. Kennedy

  
	
   

  	
  Jeffrey A. Kennedy

  
	
   

  	
   

  
	
   

  	
    /s/ Brian
  Kennedy

  
	
   

  	
  Brian Kennedy

  
	
   

  	
   

  
	
   

  	
    /s/ Maria
  Kennedy

  
	
   

  	
  Maria Kennedy

  
	
   

  	
   

  
	
   

  	
  /s/
  Kym J. Cleveland

  
	
   

  	
  Kym J. Cleveland

  
	
   

  	
   

  
	
   

  	
  /s/
  Kelly C. Cleveland

  
	
   

  	
  Kelly C. Cleveland

  
	
   

  	
   

  
	
   

  	
  /s/
  Dorothy C. Cleveland

  
	
   

  	
  Dorothy C. Cleveland

  
	
   

  	
   

  
	
   

  	
    /s/ Charles
  E. Cleveland

  
	
   

  	
  Charles E. Cleveland

  

 

11

 

EXHIBIT A

 

Form of
Joinder Agreement

 

The undersigned hereby
agrees, effective as of the date hereof, to become a party to that certain
Shareholders Agreement (the “Agreement”)
dated as of [                  ],
2008 and as may be amended from time to time by and among Steel Dynamics, Inc.,
an Indiana corporation (“SDI”) and
the other parties named therein and, for all purposes of the Agreement, the
undersigned shall be included within the term “Shareholder”
(as defined in the Agreement).  The
address and facsimile number to which notices may be sent to the undersigned is
as follows:

 

 

	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Facsimile No:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Signature:Q1 2008 Exhibit 10.60

EXHIBIT 10.60

CENTILLIUM COMMUNICATIONS, INC.

1997 STOCK PLAN

                  (as amended and restated effective April 13, 2000 and July 20, 2006 

                  and subsequently amended and restated effective March 26, 2008)

	Purposes of the Plan.  The purposes of this 1997 Stock Plan are:

	to attract and retain the best available personnel for positions of substantial responsibility,

	to provide additional incentive to Employees, Directors and Consultants, and 

	to promote the success of the Company's business.

Options granted under the Plan may be Incentive Stock Options or Nonstatutory Stock Options, as determined by the Administrator at the
time of grant.  Stock Purchase Rights and Stock Units may also be granted under the Plan.

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

	"Administrator" means the Board or any of its Committees as shall be administering the Plan, in accordance with Section 4 of the
Plan.

	"Applicable Laws" means the requirements relating to the administration of stock option plans under U. S. state corporate laws, U.S.
federal and state securities laws, the Code, any stock exchange or quotation system on which the Common Stock is listed or quoted and the
applicable laws of any foreign country or jurisdiction where Options, Stock Purchase Rights or Stock Units are, or will be, granted under the
Plan.

	"Board" means the Board of Directors of the Company.

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

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

	"Common Stock" means the common stock of the Company.

	"Company" means Centillium Communications, Inc., a Delaware corporation.

	"Consultant" means any person, including an advisor, engaged by the Company or a Parent or Subsidiary to render services to such
entity.

	"Director" means a member of the Board.

	"Disability" means total and permanent disability as defined in Section 22(e)(3) of the Code.

	"Employee" means any person, including Officers and Directors, employed by the Company or any Parent or Subsidiary of the
Company.  A Service Provider shall not cease to be an Employee in the case of (i) any leave of absence approved by the Company or (ii)
transfers between locations of the Company or between the Company, its Parent, any Subsidiary, or any successor.  For purposes of Incentive
Stock Options, no such leave may exceed ninety days, unless reemployment upon expiration of such leave is guaranteed by statute or contract.  If
reemployment upon expiration of a leave of absence approved by the Company is not so guaranteed, on the 181st day of such leave any
Incentive Stock Option held by the Optionee shall cease to be treated as an Incentive Stock Option and shall be treated for tax purposes as a
Nonstatutory Stock Option.  Neither service as a Director nor payment of a director's fee by the Company shall be sufficient to constitute
"employment" by the Company.

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

	"Fair Market Value" means, as of any date, the value of Common Stock determined as follows:

	If the Common Stock is listed on any established stock exchange or a national market system, including without limitation the Nasdaq
National Market or The Nasdaq SmallCap Market of The Nasdaq Stock Market, its Fair Market Value shall be the closing sales price for such
stock (or the closing bid, if no sales were reported) as quoted on such exchange or system for the last market trading day prior to the time of
determination, as reported in The Wall Street Journal or such other source as the Administrator deems reliable;

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

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

	"Incentive Stock Option" means an Option intended to qualify as an incentive stock option within the meaning of Section 422
of the Code and the regulations promulgated thereunder.

	"Inside Director" means a Director who is an Employee.

	"IPO Effective Date" means the date upon which the Securities and Exchange Commission declares the initial public offering of the
Company's common stock as effective.

	"Nonstatutory Stock Option" means an Option not intended to qualify as an Incentive Stock Option.

	"Notice of Grant" means a written or electronic notice evidencing certain terms and conditions of an individual Option, Stock
Purchase Right or Stock Unit grant.  The Notice of Grant is part of the Option Agreement or Stock Unit Agreement.

	"Officer" means a person who is an officer of the Company within the meaning of Section 16 of the Exchange Act and the rules and
regulations promulgated thereunder.

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

	"Option Agreement" means an agreement between the Company and an Optionee evidencing the terms and conditions of an
individual Option grant.  The Option Agreement is subject to the terms and conditions of the Plan.

	"Option Exchange Program" means a program whereby outstanding Options are surrendered in exchange for Options with a lower
exercise price.

	"Optioned Stock" means the Common Stock subject to an Option or Stock Purchase Right.

	"Optionee" means the holder of an outstanding Option or Stock Purchase Right granted under the Plan.

	"Outside Director" means a Director who is not an Employee.

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

	"Participant" shall mean a person who holds an Option, Stock Purchase Right or Stock Unit.

	"Plan" means this 1997 Stock Plan.

	"Restricted Stock" means shares of Common Stock acquired pursuant to a grant of Stock Purchase Rights under Section 11 of the
Plan.

	"Restricted Stock Purchase Agreement" means a written agreement between the Company and the Optionee evidencing the terms
and restrictions applying to stock purchased under a Stock Purchase Right.  The Restricted Stock Purchase Agreement is subject to the terms
and conditions of the Plan and the Notice of Grant.

	"Rule 16b-3" means Rule 16b-3 of the Exchange Act or any successor to Rule 16b-3, as in effect when discretion is being exercised
with respect to the Plan.

	"Section 16(b) " means Section 16(b) of the Exchange Act.

	"Service Provider" means an Employee, Director or Consultant.

	"Share" means a share of the Common Stock, as adjusted in accordance with Section 15 of the Plan.

	"Stock Purchase Right" means the right to purchase Common Stock pursuant to Section 11 of the Plan, as evidenced by a Notice of
Grant.

	"Stock Unit" means a bookkeeping entry representing the Company's obligation to deliver one Share (or distribute
cash) on a future date in accordance with the terms, conditions and restrictions of a Stock Unit Agreement. 

	"Stock Unit Agreement" means the agreement between the Company and the recipient of a Stock Unit which contains
the terms, conditions and restrictions pertaining to such Stock Unit.

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

	Stock Subject to the Plan.  Subject to the provisions of Section 15 of the Plan, the maximum aggregate
number of Shares that may be optioned, sold and awarded under the Plan is 12,500,000 Shares, plus an annual increase to be added on the first
day of the Company's fiscal year beginning in 2001, equal to 6% of the outstanding shares on such date.  The Shares may be authorized, but
unissued, or reacquired Common Stock.

If an Option or Stock Purchase Right expires or becomes unexercisable without having been exercised in full, or is surrendered pursuant
to an Option Exchange Program, or if a Stock Unit is forfeited or terminates for any other reason before being settled, the unpurchased or
undelivered Shares which were subject thereto shall become available for future grant or sale under the Plan (unless the Plan has terminated);
provided, however, that Shares that have actually been issued under the Plan, whether upon exercise of an Option or Right or the
settlement of a Stock Unit, shall not be returned to the Plan and shall not become available for future distribution under the Plan, except that if
Shares of Restricted Stock are repurchased by the Company at their original purchase price, such Shares shall become available for future grant
under the Plan.  

	Administration of the Plan.

	Procedure.

	Multiple Administrative Bodies.  Different Committees with respect to different groups of Service Providers may administer the
Plan.

	Section 162(m).  To the extent that the Administrator determines it to be desirable to qualify Options granted hereunder as
"performance-based compensation" within the meaning of Section 162(m) of the Code, the Plan shall be administered by a Committee of two or
more "outside directors" within the meaning of Section 162(m) of the Code.

	Rule 16b-3.  To the extent desirable to qualify transactions hereunder as exempt under Rule 16b-3, the transactions contemplated
hereunder shall be structured to satisfy the requirements for exemption under Rule 16b-3.

	Other Administration.  Other than as provided above, the Plan shall be administered by (A) the Board or (B) a Committee, which
committee shall be constituted to satisfy Applicable Laws. 

	Powers of the Administrator.  Subject to the provisions of the Plan, and in the case of a Committee, subject to the specific duties
delegated by the Board to such Committee, the Administrator shall have the authority, in its discretion:

	to determine the Fair Market Value;

	to select the Service Providers to whom Options, Stock Purchase Rights and Stock Units may be granted hereunder;

	to determine the number of shares of Common Stock to be covered by each Option, Stock Purchase Right and Stock Unit granted
hereunder;

	to approve forms of agreement for use under the Plan;

	to determine the terms and conditions, not inconsistent with the terms of the Plan, of any Option, Stock Purchase Right or Stock Unit granted
hereunder.  Such terms and conditions include, but are not limited to, the exercise price, the time or times when Options or Stock Purchase Rights
may be exercised or Stock Units may be settled (which may be based on performance criteria), any vesting acceleration or waiver of forfeiture
restrictions, and any restriction or limitation regarding any Option, Stock Purchase Right or Stock Unit or the shares of Common Stock relating
thereto, based in each case on such factors as the Administrator, in its sole discretion, shall determine;

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

	to institute an Option Exchange Program;

	to construe and interpret the terms of the Plan and awards granted pursuant to the Plan;

	to prescribe, amend and rescind rules and regulations relating to the Plan, including rules and regulations relating to sub-plans established for
the purpose of qualifying for preferred tax treatment under foreign tax laws;

	to modify or amend each Option, Stock Purchase Right or Stock Unit (subject to Section 17(c) of the Plan), including the discretionary
authority to extend the

post-termination exercisability period of Options longer than is otherwise provided for in the Plan;

	to allow Participants to satisfy withholding tax obligations by electing to have the Company withhold from the Shares to be issued upon
exercise of an Option or Stock Purchase Right or settlement of a Stock Unit that number of Shares having a Fair Market Value equal to the
amount required to be withheld.  The Fair Market Value of the Shares to be withheld shall be determined on the date that the amount of tax to be
withheld is to be determined.  All elections by a Participant to have Shares withheld for this purpose shall be made in such form and under such
conditions as the Administrator may deem necessary or advisable;

	to authorize any person to execute on behalf of the Company any instrument required to effect the grant of an Option, Stock Purchase Right
or Stock Unit previously granted by the Administrator;

	to make all other determinations deemed necessary or advisable for administering the Plan.

	Effect of Administrator's Decision.  The Administrator's decisions, determinations and interpretations shall be final and binding
on all Participants.

	Eligibility.  Nonstatutory Stock Options, Stock Purchase Rights and Stock Units may be granted to Service Providers.  Incentive
Stock Options may be granted only to Employees.

	Limitations.

	Each Option shall be designated in the Option Agreement as either an Incentive Stock Option or a Nonstatutory Stock Option.  However,
notwithstanding such designation, to the extent that the aggregate Fair Market Value of the Shares with respect to which Incentive Stock Options
are exercisable for the first time by the Optionee during any calendar year (under all plans of the Company and any Parent or Subsidiary) exceeds
$100,000, such Options shall be treated as Nonstatutory Stock Options.  For purposes of this Section 6(a), Incentive Stock Options shall be taken
into account in the order in which they were granted.  The Fair Market Value of the Shares shall be determined as of the time the Option with
respect to such Shares is granted.

	Neither the Plan nor any Option, Stock Purchase Right or Stock Unit shall confer upon a Participant any right with respect to continuing the
Participant's relationship as a Service Provider with the Company, nor shall they interfere in any way with the Participant's right or the Company's
right to terminate such relationship at any time, with or without cause.

	The following limitations shall apply to grants of Options:

	No Service Provider shall be granted, in any fiscal year of the Company, Options to purchase more than 1,500,000 Shares.

	In connection with his or her initial service, a Service Provider may be granted Options to purchase up to an additional 1,500,000 Shares,
which shall not count against the limit set forth in subsection (i) above.

	The foregoing limitations shall be adjusted proportionately in connection with any change in the Company's capitalization as described in
Section 15. 

	If an Option is cancelled in the same fiscal year of the Company in which it was granted (other than in connection with a transaction described
in Section 15), the cancelled Option will be counted against the limits set forth in subsections (i) and (ii) above.  For this purpose, if the exercise
price of an Option is reduced, the transaction will be treated as a cancellation of the Option and the grant of a new Option.

	Term of Plan.  Subject to Section 21 of the Plan, the amendment and restatement of the Plan shall become effective upon the IPO
Effective Date.  It shall continue in effect for a term of ten (10) years from the date of obtaining stockholder approval of the Plan in 2000, unless
terminated earlier under Section 17 of the Plan.

	Term of Option.  The term of each Option shall be stated in the Option Agreement.  In the case of an Incentive Stock Option, the
term shall be ten (10) years from the date of grant or such shorter term as may be provided in the Option Agreement.  Moreover, in the case of an
Incentive Stock Option granted to an Optionee who, at the time the Incentive Stock Option is granted, owns stock representing more than ten
percent (10%) of the total combined voting power of all classes of stock of the Company or any Parent or Subsidiary, the term of the Incentive
Stock Option shall be five (5) years from the date of grant or such shorter term as may be provided in the Option Agreement.

	Option Exercise Price and Consideration.

	Exercise Price.  The per share exercise price for the Shares to be issued pursuant to exercise of an Option shall be determined by
the Administrator, subject to the following:

	In the case of an Incentive Stock Option

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

	granted to any Employee other than an Employee described in paragraph (A) immediately above, the per Share exercise price shall be no
less than 100% of the Fair Market Value per Share on the date of grant.

	In the case of a Nonstatutory Stock Option, the per Share exercise price shall be determined by the Administrator.  In the case of a
Nonstatutory Stock Option intended to qualify as "performance-based compensation" within the meaning of Section 162(m)

of the Code, the per Share exercise price shall be no less than 100% of the Fair Market Value per Share on the date of grant.

	Notwithstanding the foregoing, Options may be granted with a per Share exercise price of less than 100% of the Fair Market Value per Share
on the date of grant pursuant to a merger or other corporate transaction.

	Waiting Period and Exercise Dates.  At the time an Option is granted, the Administrator shall fix the period within which the Option
may be exercised and shall determine any conditions that must be satisfied before the Option may be exercised.

	Form of Consideration.  The Administrator shall determine the acceptable form of consideration for exercising an Option, including
the method of payment.  In the case of an Incentive Stock Option, the Administrator shall determine the acceptable form of consideration at the
time of grant.  Such consideration may consist entirely of:

	cash;

	check;

	promissory note;

	other Shares which (A) in the case of Shares acquired upon exercise of an option, have been owned by the Optionee for more than six
months on the date of surrender, and (B) have a Fair Market Value on the date of surrender equal to the aggregate exercise price of the Shares
as to which said Option shall be exercised;

	consideration received by the Company under a cashless exercise program implemented by the Company in connection with the Plan;

	a reduction in the amount of any Company liability to the Optionee, including any liability attributable to the Optionee's participation in any
Company-sponsored deferred compensation program or arrangement;

	any combination of the foregoing methods of payment; or

	such other consideration and method of payment for the issuance of Shares to the extent permitted by Applicable Laws.

	Exercise of Option.

	Procedure for Exercise; Rights as a Shareholder.  Any Option granted hereunder shall be exercisable according to the terms of the
Plan and at such times and under such conditions as determined by the Administrator and set forth in the Option Agreement.  Unless the
Administrator provides otherwise, vesting of Options granted hereunder shall be tolled during any unpaid leave of absence.  An Option may not be
exercised for a fraction of a Share.

An Option shall be deemed exercised when the Company receives: (i) written or electronic notice of exercise (in accordance with the
Option Agreement) from the person entitled to exercise the Option, and (ii) full payment for the Shares with respect to which the Option is
exercised.  Full payment may consist of any consideration and method of payment authorized by the Administrator and permitted by the Option
Agreement and the Plan.  Shares issued upon exercise of an Option shall be issued in the name of the Optionee or, if requested by the Optionee,
in the name of the Optionee and his or her spouse.  Until the Shares are issued (as evidenced by the appropriate entry on the books of the
Company or of a duly authorized transfer agent of the Company), no right to vote or receive dividends or any other rights as a shareholder shall
exist with respect to the Optioned Stock, notwithstanding the exercise of the Option.  The Company shall issue (or cause to be issued) such
Shares promptly after the Option is exercised.  No adjustment will be made for a dividend or other right for which the record date is prior to the
date the Shares are issued, except as provided in Section 15 of the Plan.

Exercising an Option in any manner shall decrease the number of Shares thereafter available, both for purposes of the Plan and for
sale under the Option, by the number of Shares as to which the Option is exercised.

	Termination of Relationship as a Service Provider.  If an Optionee ceases to be a Service Provider, other than upon the Optionee's
death or Disability, the Optionee may exercise his or her Option within such period of time as is specified in the Option Agreement to the extent
that the Option is vested on the date of termination (but in no event later than the expiration of the term of such Option as set forth in the Option
Agreement).  In the absence of a specified time in the Option Agreement, the Option shall remain exercisable for three (3) months following the
Optionee's termination.  If, on the date of termination, the Optionee is not vested as to his or her entire Option, the Shares covered by the
unvested portion of the Option shall revert to the Plan.  If, after termination, the Optionee does not exercise his or her Option within the time
specified by the Administrator, the Option shall terminate, and the Shares covered by such Option shall revert to the Plan.

	Disability of Optionee.  If an Optionee ceases to be a Service Provider as a result of the Optionee's Disability, the Optionee may
exercise his or her Option within such period of time as is specified in the Option Agreement to the extent the Option is vested on the date of
termination (but in no event later than the expiration of the term of such Option as set forth in the Option Agreement).  In the absence of a
specified time in the Option Agreement, the Option shall remain exercisable for twelve (12) months following the Optionee's termination.  If, on the
date of termination, the Optionee is not vested as to his or her entire Option, the Shares covered by the unvested portion of the Option shall revert
to the Plan.  If, after termination, the Optionee does not exercise his or her Option within the time specified herein, the Option shall terminate, and
the Shares covered by such Option shall revert to the Plan.

	Death of Optionee.  If an Optionee dies while a Service Provider, the Option may be exercised within such period of time as is
specified in the Option Agreement (but in no event later than the expiration of the term of such Option as set forth in the Notice of Grant), by the
Optionee's estate or by a person who acquires the right to exercise the Option by bequest or inheritance, but only to the extent that the Option is
vested on the date of death.  In the absence of a specified time in the Option Agreement, the Option shall remain exercisable for

twelve (12) months following the Optionee's termination.  If, at the time of death, the Optionee is not vested as to his or her entire Option, the Shares covered
by the unvested portion of the Option shall immediately revert to the Plan.  The Option may be exercised by the executor or administrator of the
Optionee's estate or, if none, by the person(s) entitled to exercise the Option under the Optionee's will or the laws of descent or distribution.  If the
Option is not so exercised within the time specified herein, the Option shall terminate, and the Shares covered by such Option shall revert to the
Plan.

	Buyout Provisions.  The Administrator may at any time offer to buy out for a payment in cash or Shares an Option previously granted
based on such terms and conditions as the Administrator shall establish and communicate to the Optionee at the time that such offer is
made.

	Stock Purchase Rights.

	Rights to Purchase.  Stock Purchase Rights may be issued either alone, in addition to, or in tandem with other awards granted under
the Plan and/or cash awards made outside of the Plan.  After the Administrator determines that it will offer Stock Purchase Rights under the Plan,
it shall advise the offeree in writing or electronically, by means of a Notice of Grant, of the terms, conditions and restrictions related to the offer,
including the number of Shares that the offeree shall be entitled to purchase, the price to be paid, and the time within which the offeree must
accept such offer.  The offer shall be accepted by execution of a Restricted Stock Purchase Agreement in the form determined by the
Administrator.

	Repurchase Option.  Unless the Administrator determines otherwise, the Restricted Stock Purchase Agreement shall grant the
Company a repurchase option exercisable upon the voluntary or involuntary termination of the purchaser's service with the Company for any
reason (including death or Disability).  The purchase price for Shares repurchased pursuant to the Restricted Stock Purchase Agreement shall be
the original price paid by the purchaser and may be paid by cancellation of any indebtedness of the purchaser to the Company.  The repurchase
option shall lapse at a rate determined by the Administrator.

	Other Provisions.  The Restricted Stock Purchase Agreement shall contain such other terms, provisions and conditions not
inconsistent with the Plan as may be determined by the Administrator in its sole discretion. 

	Rights as a Shareholder.  Once the Stock Purchase Right is exercised, the purchaser shall have the rights equivalent to those of a
shareholder, and shall be a shareholder when his or her purchase is entered upon the records of the duly authorized transfer agent of the
Company.  No adjustment will be made for a dividend or other right for which the record date is prior to the date the Stock Purchase Right is
exercised, except as provided in Section 15 of the Plan.

	Stock Units.

	Stock Unit Agreement.  Each grant of Stock Units under the Plan shall be evidenced by a Stock Unit Agreement between the
recipient and the Company.  Stock Units shall be subject to all applicable terms of the Plan and may be subject to any other terms that are not

inconsistent with the Plan.  The provisions of the various Stock Unit Agreements entered into under the Plan need not be identical.  Stock Units
may be granted in consideration of a reduction in the recipient's other compensation.

	Payment for Awards.  To the extent that an award is granted in the form of Stock Units, no cash consideration shall be required
of the award recipients.

	Vesting Conditions.  Each Stock Unit may or may not be subject to vesting.  Vesting shall occur, in full or in installments, upon
satisfaction of the conditions specified in the Stock Unit Agreement.  A Stock Unit Agreement may provide for accelerated vesting in the event of
the Participant's death, disability or retirement or other events.  The Administrator may determine, at the time of granting Stock Units or thereafter,
that all or part of such Stock Units shall become vested in the event of a merger of the Company with or into another corporation, or the sale of
substantially all of the assets of the Company.

	Voting and Dividend Rights.  The holders of Stock Units shall have no voting rights.  Prior to settlement or forfeiture, any Stock
Unit awarded under the Plan may, at the Administrator's discretion, carry with it a right to dividend equivalents.  Such right entitles the holder to be
credited with an amount equal to all cash dividends paid on one Share while the Stock Unit is outstanding.  Dividend equivalents may be
converted into additional Stock Units.  Settlement of dividend equivalents may be made in the form of cash, in the form of Shares, or in a
combination of both.  Prior to distribution, any dividend equivalents which are not paid shall be subject to the same conditions and restrictions
(including without limitation, any forfeiture conditions) as the Stock Units to which they attach.

	Form and Time of Settlement of Stock Units.  Settlement of vested Stock Units may be made in the form of (a) cash, (b) Shares
or (c) any combination of both, as determined by the Administrator.  Vested Stock Units may be settled in a lump sum or in installments.  The
distribution may occur or commence when all vesting conditions applicable to the Stock Units have been satisfied or have lapsed, or it may be
deferred to any later date.  Until a Stock Unit is settled, the number of such Stock Units shall be subject to adjustment pursuant to Section
15(a).

	Death of Recipient.  Any Stock Unit award that becomes payable after the recipient's death shall be distributed to the recipient's
beneficiary or beneficiaries.  Each recipient of a Stock Unit award under the Plan shall designate one or more beneficiaries for this purpose by
filing the prescribed form with the Company.  A beneficiary designation may be changed by filing the prescribed form with the Company at any
time before the award recipient's death.  If no beneficiary was designated or if no designated beneficiary survives the award recipient, then any
Stock Unit award that becomes payable after the recipient's death shall be distributed to the recipient's estate.

	Creditors' Rights.  A holder of Stock Units shall have no rights other than those of a general creditor of the Company.  Stock
Units represent an unfunded and unsecured obligation of the Company, subject to the terms and conditions of the applicable Stock Unit
Agreement.

	Non-Transferability of Options, Stock Purchase Rights and Stock Units.  Unless determined otherwise by the Administrator, an
Option, Stock Purchase Right or Stock Unit may not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner other
than by will or by the laws of descent or distribution and in the case of an Option or Stock Purchase Right may be exercised, during the lifetime of
the Optionee, only by the Optionee.  If the Administrator makes an Option, Stock Purchase Right or Stock Unit transferable, such Option, Stock
Purchase Right or Stock Unit shall contain such additional terms and conditions as the Administrator deems appropriate.

	Formula Option Grants to Outside Directors. Outside Directors shall be automatically granted Options each year in accordance with
the following provisions:

	All Options granted pursuant to this Section shall be Nonstatutory Stock Options and, except as otherwise provided herein, shall be subject to
the other terms and conditions of the Plan.

	Each person who first becomes an Outside Director on or after the IPO Effective Date, whether through election by the stockholders of the
Company or appointment by the Board to fill a vacancy, shall be automatically granted an Option to purchase 20,000 Shares (the "First Option")
on the date he or she first becomes an Outside Director; provided, however, that an Inside Director who ceases to be an Inside Director but who
remains a Director shall not receive a First Option.

	Each Outside Director shall be automatically granted an Option to purchase 5,000 Shares (a "Subsequent Option") following each
annual meeting of the stockholders of the Company, except in the case of the first such annual meeting after the IPO Effective Date if such annual
meeting is held within six (6) months of the IPO Effective Date, if as of such date, he or she shall continue to serve on the Board and shall have
served on the Board for at least the preceding six (6) months.

	Notwithstanding the provisions of subsections (b) and (c) hereof, any exercise of an Option granted before the Company has obtained
stockholder approval of the Plan in accordance with Section 21 hereof shall be conditioned upon obtaining such stockholder approval of the
Plan in accordance with Section 21 hereof.

	The terms of each First Option granted pursuant to this Section shall be as follows:

	the term of the First Option shall be ten (10) years.

	the exercise price per Share shall be 100% of the Fair Market Value per Share on the date of grant of the First Option.

	the First Option shall vest as to 25% of the Shares on each of the first, second, third and fourth anniversary of its date of grant provided that
the Optionee continues to serve as a Director as of each such date.

	The terms of each Subsequent Option granted pursuant to this Section shall be as follows:

	the term of the Subsequent Option shall be ten (10) years.

	the exercise price per Share shall be 100% of the Fair Market Value per Share on the date of grant of the Subsequent Option.

	the Subsequent Option shall vest as to 100% of the Shares on the first anniversary of its date of grant provided that the Optionee continues to
serve as a Director on as of such date.

	Adjustments Upon Changes in Capitalization, Dissolution, Merger or Asset Sale. 

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

	Dissolution or Liquidation.  In the event of the proposed dissolution or liquidation of the Company, the Administrator shall notify each
Participant as soon as practicable prior to the effective date of such proposed transaction.  The Administrator in its discretion may provide for an
Optionee to have the right to exercise his or her Option until ten (10) days prior to such transaction as to all of the Optioned Stock covered
thereby, including Shares as to which the Option would not otherwise be exercisable.  The Administrator in its discretion may provide that a
Participant shall fully vest in a Stock Unit as to all of the Shares subject to the Stock Unit, provided the proposed dissolution or liquidation takes
place at the time and in the manner contemplated.  In addition, the Administrator may provide that any Company repurchase option applicable to
any Shares purchased upon exercise of an Option or Stock Purchase Right shall lapse as to all such Shares, provided the proposed dissolution or
liquidation takes place at the time and in the manner contemplated.  To the extent it has not been previously exercised or

settled, an Option, Stock Purchase Right or Stock Unit will terminate immediately prior to the consummation of such proposed action.

	Merger or Asset Sale.  In the event of a merger of the Company with or into another corporation, or the sale of substantially all of the
assets of the Company, each outstanding Option, Stock Purchase Right and Stock Unit shall be assumed or an equivalent option or right
substituted by the successor corporation or a Parent or Subsidiary of the successor corporation.  With respect to Options granted to an Outside
Director pursuant to Section 14 that are assumed or substituted for, if following such assumption or substitution the Optionee's status as a Director
or a director of the successor corporation, as applicable, is terminated other than upon a voluntary resignation by the Optionee, then the Optionee
shall fully vest in and have the right to exercise the Option as to all of the Optioned Stock, including Shares as to which it would not otherwise be
vested or exercisable.  

In the event that the successor corporation refuses to assume or substitute for the Option, Stock Purchase Right or Stock Unit, the Optionee
shall fully vest in and have the right to exercise the Option or Stock Purchase Right as to all of the Optioned Stock, including Shares as to which it
would not otherwise be vested or exercisable, and the Participant shall fully vest in the Stock Unit as to all of the Shares subject to the Stock Unit.
If an Option or Stock Purchase Right becomes fully vested and exercisable in lieu of assumption or substitution in the event of a merger or sale of
assets, the Administrator shall notify the Optionee in writing or electronically that the Option or Stock Purchase Right shall be fully vested and
exercisable for a period of fifteen (15) days from the date of such notice, and the Option or Stock Purchase Right shall terminate upon the
expiration of such period.  

For the purposes of this paragraph, the Option, Stock Purchase Right or Stock Unit shall be considered assumed if, following the merger or
sale of assets, the option, right or unit confers the right to purchase or receive, for each Share subject to the Option, Stock Purchase Right or
Stock Unit immediately prior to the merger or sale of assets, the consideration (whether stock, cash, or other securities or property) received in the
merger or sale of assets by holders of Common Stock for each Share held on the effective date of the transaction (and if holders were offered a
choice of consideration, the type of consideration chosen by the holders of a majority of the outstanding Shares); provided, however, that if such
consideration received in the merger or sale of assets is not solely common stock of the successor corporation or its Parent, the Administrator
may, with the consent of the successor corporation, provide for the consideration to be received upon the exercise of the Option or Stock
Purchase Right or the settlement of the Stock Unit, for each Share subject to the Option, Stock Purchase Right or Stock Unit, to be solely common
stock of the successor corporation or its Parent equal in fair market value to the per share consideration received by holders of Common Stock in
the merger or sale of assets.

	Date of Grant.  The date of grant of an Option, Stock Purchase Right or Stock Unit shall be, for all purposes, the date on which the
Administrator makes the determination granting such Option, Stock Purchase Right or Stock Unit, or such other later date as is determined by the
Administrator.  Notice of the determination shall be provided to each Participant within a reasonable time after the date of such grant.

	Amendment and Termination of the Plan.

	Amendment and Termination.  The Board may at any time amend, alter, suspend or terminate the Plan.  

	Shareholder Approval.  The Company shall obtain shareholder approval of any Plan amendment to the extent necessary and
desirable to comply with Applicable Laws. 

	Effect of Amendment or Termination.  No amendment, alteration, suspension or termination of the Plan shall impair the rights of any
Participant, unless mutually agreed otherwise between the Participant and the Administrator, which agreement must be in writing and signed by
the Participant and the Company.  Termination of the Plan shall not affect the Administrator's ability to exercise the powers granted to it hereunder
with respect to awards granted under the Plan prior to the date of such termination.

	Conditions Upon Issuance of Shares.

	Legal Compliance.  Shares shall not be issued pursuant to the exercise or settlement of an Option, Stock Purchase Right or Stock
Unit unless the exercise or settlement of such Option, Stock Purchase Right or Stock Unit and the issuance and delivery of such Shares shall
comply with Applicable Laws and shall be further subject to the approval of counsel for the Company with respect to such compliance.

	Investment Representations.  As a condition to the exercise of an Option or Stock Purchase Right or the settlement of a Stock Unit,
the Company may require the Participant to represent and warrant at the time of any such exercise or settlement that the Shares are being
acquired only for investment and without any present intention to sell or distribute such Shares if, in the opinion of counsel for the Company, such
a representation is required.

	Inability to Obtain Authority.  The inability of the Company to obtain authority from any regulatory body having jurisdiction, which
authority is deemed by the Company's counsel to be necessary to the lawful issuance and sale of any Shares hereunder, shall relieve the
Company of any liability in respect of the failure to issue or sell such Shares as to which such requisite authority shall not have been
obtained.

	Reservation of Shares.  The Company, during the term of this Plan, will at all times reserve and keep available such number of
Shares as shall be sufficient to satisfy the requirements of the Plan.

	Shareholder Approval.  The Plan shall be subject to approval by the shareholders of the Company within twelve (12) months after
the date the Plan is adopted.  Such shareholder approval shall be obtained in the manner and to the degree required under Applicable Laws.

	Employer Fringe Benefit Taxes. To the extent permitted by applicable federal, state, local and foreign law,
a Participant shall be liable for any fringe benefit tax that may be payable by the Company and/or the Participant's employer in connection with
any Option award, Restricted Stock award or Stock Unit award granted to the Participant under the Plan,

which the Company and/or employer may collect by any reasonable method established by the Company and/or employer.

CENTILLIUM COMMUNICATIONS, INC.

AMENDED AND RESTATED

1997 STOCK PLAN

STOCK OPTION AGREEMENT

Unless otherwise defined herein, the terms defined in the Plan shall have the same defined meanings in this Option Agreement.

	NOTICE OF STOCK OPTION GRANT

{{First_Name}} {{Last_Name}}

{{Address_Line_1}}

{{Address_Line_2}}

{{City}}, {{State}} {{Country}} {{Zip_Code}}

You have been granted an option to purchase Common Stock of the Company, subject to the terms and conditions of the Plan and this
Option Agreement, as follows:

	
Grant Number
	
{{NUM}}

	
Date of Grant
	
{{Option_Date}}

	
Vesting Commencement Date
	
{{Vest_Base_Date}}

	
Exercise Price per Share
	
${{Option_Price}}

	
Total Number of Shares Granted
	
{{Shares_Granted}}

	
Total Exercise Price
	
${{Total_Option_Price}}

	
Type of Option:
	
{{Long_Type}}

	
Term/Expiration Date:
	
{{Expiration_Date_Period_1}}

Vesting Schedule:

Subject to the Optionee continuing to be a Service Provider on such dates, this Option may be exercised, in whole or in part, in accordance with
the following schedule:

	
Shares
	
Vest Type
	
Full Vest
	
Expiration

	
{{Shares_1}}
	
{{Vest_Type_1}}
	
{{Vest_Date_1}}
	
{{Expiration_Date_1}}

	
{{Shares_2}}
	
{{Vest_Type_2}}
	
{{Vest_Date_2}}
	
{{Expiration_Date_2}}

	
{{Shares_3}}
	
{{Vest_Type_3}}
	
{{Vest_Date_3}}
	
{{Expiration_Date_3}}

	
{{Shares_4}}
	
{{Vest_Type_4}}
	
{{Vest_Date_4}}
	
{{Expiration_Date_4}}

	
{{Shares_5}}
	
{{Vest_Type_5}}
	
{{Vest_Date_5}}
	
{{Expiration_Date_5}}

	
{{Shares_6}}
	
{{Vest_Type_6}}
	
{{Vest_Date_6}}
	
{{Expiration_Date_6}}

	
{{Shares_7}}
	
{{Vest_Type_7}}
	
{{Vest_Date_7}}
	
{{Expiration_Date_7}}

	
{{Shares_8}}
	
{{Vest_Type_8}}
	
{{Vest_Date_8}}
	
{{Expiration_Date_8}}

Termination Period:

This Option may be exercised for three (3) months after Optionee ceases to be a Service Provider.  Upon the Disability of the Optionee, this
Option may be exercised for six (6) months after Optionee ceases to be a Service Provider.  Upon Optionee's death, this Option may be exercised for
twelve (12) months after Optionee ceases to be a Service Provider.  In no event shall this Option be exercised later than the Term/Expiration Date as
provided above.

	AGREEMENT

	Grant of Option.  

The Plan Administrator of the Company hereby grants to the Optionee named in the Notice of Stock Option Grant attached as Part I of
this Agreement (the "Optionee") an option (the "Option") to purchase the number of Shares, as set forth in the Notice of Stock
Option Grant, at the exercise price per share set forth in the Notice of Stock Option Grant (the "Exercise Price"), subject to the terms and
conditions of the Plan, which is incorporated herein by reference.  Subject to Section 15(c) of the Plan, in the event of a conflict between the terms
and conditions of the Plan and the terms and conditions of this Option Agreement, the terms and conditions of the Plan shall prevail.

If designated in the Notice of Stock Option Grant as an Incentive Stock Option ("ISO"), this Option is intended to qualify as an
Incentive Stock Option under Section 422 of the Code.  However, if this Option is intended to be an Incentive Stock Option, to the extent that it
exceeds the $100,000 rule of Code Section 422(d) it shall be treated as a Nonstatutory Stock Option ("NSO").

	Exercise of Option.

	Right to Exercise.  This Option is exercisable during its term in accordance with the Vesting Schedule set out in the Notice of Stock Option
Grant and the applicable provisions of the Plan and this Option Agreement.

                                             -2-

	Method of Exercise.  This Option is exercisable either (a) through your on-line ETrade Stock Plans account ("On-line
Exercise") or (b) by delivery of an exercise notice, in the form attached as Exhibit A (the "Exercise Notice"), which shall
state the election to exercise the Option, the number of Shares in respect of which the Option is being exercised (the "Exercised Shares"),
and such other representations and agreements as may be required by the Company pursuant to the provisions of the Plan.  The Exercise Notice
shall be completed by the Optionee and delivered to the Company.  The Exercise Notice and the On-line Exercise shall be accompanied by payment
of the aggregate Exercise Price as to all Exercised Shares.  This Option shall be deemed to be exercised (a) upon receipt by the Company of such
fully executed Exercise Notice or (b) upon exercise through an On-line Exercise and in each case, accompanied by such aggregate Exercise
Price.

No Shares shall be issued pursuant to the exercise of this Option unless such issuance and exercise complies with Applicable Laws.  Assuming
such compliance, for income tax purposes the Exercised Shares shall be considered transferred to the Optionee on the date the Option is exercised
with respect to such Exercised Shares.

                                             -3-

	Method of Payment.

Payment of the aggregate Exercise Price shall be by any of the following, or a combination thereof, at the election of the Optionee:

	cash; or

	check; or

	consideration received by the Company under a cashless exercise program implemented by the Company in connection with the Plan; or 

	surrender of other Shares, which in the case of Shares acquired from the Company, (i) have been owned by the Optionee for more than six (6)
months on the date of surrender, and (ii) have a Fair Market Value on the date of surrender equal to the aggregate Exercise Price of the Exercised
Shares; or

	to the extent permitted by the Administrator, delivery of a properly executed exercise notice together with such other documentation as the
Administrator and the broker, if applicable, shall require to effect an exercise of the Option and delivery to the Company of the sale proceeds required
to pay the Exercise Price.

	Non-Transferability of Option.

This Option may not be transferred in any manner otherwise than by will or by the laws of descent or distribution and may be exercised
during the lifetime of Optionee only by the Optionee.  The terms of the Plan and this Option Agreement shall be binding upon the executors,
administrators, heirs, successors and assigns of the Optionee.

	Term of Option.

This Option may be exercised only within the term set out in the Notice of Stock Option Grant, and may be exercised during such term only in
accordance with the Plan and the terms of this Option Agreement.

	Tax Obligations.  

	Withholding Taxes.  Optionee agrees to make appropriate arrangements with the Company (or the Parent or Subsidiary employing or
retaining Optionee) for the satisfaction of all Federal, state, and local income and employment tax withholding requirements applicable to the Option
exercise.  Optionee acknowledges and agrees that the Company may refuse to honor the exercise and refuse to deliver Shares if such withholding
amounts are not delivered at the time of exercise.

	Notice of Disqualifying Disposition of ISO Shares.  If the Option granted to Optionee herein is an ISO, and if
Optionee sells or otherwise disposes of any of the Shares acquired pursuant to the ISO on or before the later of (1) the date two years after the
Date of Grant, or (2) the date one year after the date of exercise, the Optionee shall immediately notify the Company in

                                             -4-

writing of such
disposition.  Optionee agrees that Optionee may be subject to income tax withholding by the Company on the compensation income recognized by
the Optionee.

	Entire Agreement; Governing Law.

The Plan is incorporated herein by reference.  The Plan and this Option Agreement constitute the entire agreement of the parties with
respect to the subject matter hereof and supersede in their entirety all prior undertakings and agreements of the Company and Optionee with respect
to the subject matter hereof, and may not be modified adversely to the Optionee's interest except by means of a writing signed by the Company and
Optionee.  This agreement is governed by the internal substantive laws, but not the choice of law rules, of California.

	NO GUARANTEE OF CONTINUED SERVICE.

OPTIONEE ACKNOWLEDGES AND AGREES THAT THE VESTING OF SHARES PURSUANT TO THE VESTING SCHEDULE
HEREOF IS EARNED ONLY BY CONTINUING AS A SERVICE PROVIDER AT THE WILL OF THE COMPANY (AND NOT THROUGH THE ACT OF
BEING HIRED, BEING GRANTED AN OPTION OR PURCHASING SHARES HEREUNDER).  OPTIONEE FURTHER ACKNOWLEDGES AND
AGREES THAT THIS AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREUNDER AND THE VESTING SCHEDULE SET FORTH
HEREIN DO NOT CONSTITUTE AN EXPRESS OR IMPLIED PROMISE OF CONTINUED ENGAGEMENT AS A SERVICE PROVIDER FOR THE
VESTING PERIOD, FOR ANY PERIOD, OR AT ALL, AND SHALL NOT INTERFERE WITH OPTIONEE'S RIGHT OR THE COMPANY'S RIGHT TO
TERMINATE OPTIONEE'S RELATIONSHIP AS A SERVICE PROVIDER AT ANY TIME, WITH OR WITHOUT CAUSE.

By your electronic acceptance of this Agreement and the signature of the Company's representative below, you and the Company agree that this
Option is granted under and governed by the terms and conditions of the Plan and this Option Agreement.  Optionee has reviewed the Plan and this
Option Agreement in their entirety, has had an opportunity to obtain the advice of counsel prior to executing this Option Agreement and fully
understands all provisions of the Plan and Option Agreement.  Optionee hereby agrees to accept as binding, conclusive and final all decisions or
interpretations of the Administrator upon any questions relating to the Plan and Option Agreement.  Optionee further agrees to notify the Company
upon any change in the residence address indicated below.

Further, by your electronic acceptance of this Agreement (a) you explicitly and unambiguously consent and agree to
assume any liability for fringe benefit tax that may be payable by the Company and/or your employer in connection with the Option granted under this
Agreement,  (b) you agree that the Company and/or your employer may collect the fringe benefit tax from you by any other reasonable method
established by the Company and/or your employer and (c) agree to execute any other consents or elections required to accomplish the above,
promptly upon request of the Company and/or your employer.

                                             -5-

CENTILLIUM COMMUNICATIONS, INC. 

By

Chief Executive Officer

Title

                                            -6-

EXHIBIT A

CENTILLIUM COMMUNICATIONS, INC.

AMENDED AND RESTATED

1997 STOCK PLAN

EXERCISE NOTICE

Centillium Communications, Inc.

 215 Fourier Ave 

   Fremont, CA  94539

   Attention:  Chief Financial Officer

	Exercise of Option.  Effective as of today, ________________, _____, the undersigned ("Purchaser") hereby elects to
purchase ______________ shares (the "Shares") of the Common Stock of Centillium Communications, Inc. (the "Company")
under and pursuant to the amended and restated 1997 Stock Plan (the "Plan") and the Stock Option Agreement dated, _____ (the
"Option Agreement").  The purchase price for the Shares shall be $_____, as required by the Option Agreement.

	Delivery of Payment.  Purchaser herewith delivers to the Company the full purchase price for the Shares.

	Representations of Purchaser.  Purchaser acknowledges that Purchaser has received, read and understood the Plan and the Option
Agreement and agrees to abide by and be bound by their terms and conditions.

	Rights as Shareholder.  Until the issuance (as evidenced by the appropriate entry on the books of the Company or of a duly authorized
transfer agent of the Company) of the Shares, no right to vote or receive dividends or any other rights as a shareholder shall exist with respect to the
Optioned Stock, notwithstanding the exercise of the Option.  The Shares so acquired shall be issued to the Optionee as soon as practicable after
exercise of the Option.  No adjustment will be made for a dividend or other right for which the record date is prior to the date of issuance, except as
provided in Section 13 of the Plan.

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

	Entire Agreement; Governing Law.  The Plan and Option Agreement are incorporated herein by reference.  This Agreement, the Plan
and the Option Agreement constitute the entire agreement of the parties with respect to the subject matter hereof and supersede in their entirety all
prior undertakings and agreements of the Company and Purchaser with respect to the subject matter hereof, and may not be modified adversely to
the Purchaser's interest except by means of a writing signed by the Company and Purchaser.  This agreement is governed by the internal substantive
laws, but not the choice of law rules, of California.

	
Submitted by
	
Accepted by

	
PURCHASER:
	
CENTILLIUM COMMUNICATIONS, INC.

	

____________________________________

Signature

____________________________________

Print Name

Address: 

____________________________________

____________________________________ 

	

____________________________________

By

____________________________________

Title

Address: 

215 Fourier Ave 

CA  94539

____________________________________

Date Received

                                             -2-

CENTILLIUM COMMUNICATIONS, INC.

AMENDED AND RESTATED

1997 STOCK PLAN

NOTICE OF STOCK UNIT AWARD

	NOTICE OF STOCK UNIT AWARD

%%First_Name}} {{Last_Name%-%

%%Address_Line_1%-%

%%Address_Line_2%-%

%%City%-%, %%State%-% %%Country%-% %%Zip_Code%-%

You have been granted Stock Units representing shares of Common Stock of Centillium Communications, Inc. (the
"Company") on the following terms and pursuant to such other terms and conditions as are set forth in the Stock Unit Agreement and
the Centillium Communications, Inc. 1997 Stock Plan (as amended and restated effective April 13, 2000 and July 20, 2006, as subsequently
amended and restated effective March 26, 2008) (the "Plan"), both of which are attached to and made a part of this document.
Certain capitalized terms used in this Notice of Stock Unit Award are defined in the Plan.

	
Date of Grant
	
%%OPTION_DATE%-%

	
Total Number of Stock

	
Units Granted:
	
%%TOTAL_SHARES-GRANTED%-%

Vesting Schedule:

The Stock Units granted shall vest in accordance with the following schedule, subject to your continuous common-law employment with the
Company or a Subsidiary:

	
Shares
	
Vest Type
	
Full Vest

	
%%Shares_PERIOD1%-%
	
%%Vest_Type_PERIOD1%-%
	
%%Vest_Date_PERIOD1%-%

	
%%Shares_PERIOD2%-%
	
%%Vest_Type_PERIOD2%-%
	
%%Vest_Date_PERIOD2%-%

	
%%Shares_PERIOD3%-%
	
%%Vest_Type_PERIOD3%-%
	
%%Vest_Date_PERIOD3%-%

	
%%Shares_PERIOD4%-%
	
%%Vest_Type_PERIOD4%-%
	
%%Vest_Date_PERIOD4%-%

By your electronic acceptance, you acknowledge receipt of a copy of the Plan, and agree that (a) these Stock Units are granted under and
governed by the terms and conditions of the Plan  and the Stock Unit Agreement, which is attached to and made a part of this document; (b)
you have carefully read, fully understand and agree to all of the terms and conditions described in the attached Stock Unit Agreement and the
Plan; (c) you understand and agree that the Stock Unit Agreement, including its cover sheet and attachments, constitutes the entire
understanding between you and the Company regarding this Award, and that any prior agreements, commitments or negotiations concerning
this Award are replaced and superseded; and (d) you have been given an opportunity to consult legal counsel with respect to all matters relating
to this Award prior to accepting this cover sheet and that you have either consulted such counsel or voluntarily declined to consult such
counsel.

By your electronic acceptance, you further agree that the Company may deliver by e-mail all documents relating to the Plan or this Award
(including without limitation, prospectuses required by the Securities and Exchange Commission) and all other documents that the Company is
required to deliver to its security holders (including without limitation, annual reports and proxy statements).  You also agree that the Company
may deliver these documents by posting them on a website maintained by the Company or by a third party under contract with the Company.  If
the Company posts these documents on a website, it will notify you by e-mail.

CENTILLIUM COMMUNICATIONS, INC. 

________________________

By

Chief Executive Officer

Title

CENTILLIUM COMMUNICATIONS, INC.

AMENDED AND RESTATED

1997 STOCK PLAN

STOCK UNIT AGREEMENT

	
Payment for Stock Units
	
No payment is required for the Stock Units you receive.  

	
Governing Plan
	
The Stock Units that you are receiving are granted pursuant and subject in all respects to the applicable provisions of the Centillium
Communications, Inc. 1997 Stock Plan (as amended and restated effective April 13, 2000 and July 20, 2006 as subsequently amended and
restated effectiveMarch 26, 2008) (the "Plan"), which is incorporated herein by reference.  Terms not otherwise defined in this
Agreement have meanings ascribed to them in the Plan.

	
Vesting
	
Subject to the terms and conditions of the Plan and this Stock Unit Agreement (the "Agreement") and any applicable change in
control agreement (or other agreement affecting vesting) between you and the Company, your Stock Units vest in accordance with the schedule
set forth in the Notice of Stock Unit Award. 

	
Forfeiture
	
When your common-law employment with the Company or a Subsidiary terminates for any reason, vesting of your Stock Units subject to
such Award immediately stops and such Award expires immediately as to the number of Stock Units that are not vested as of the date such
Service terminates and do not vest as a result of termination.  

This means that the unvested Stock Units will immediately be cancelled.  You receive no payment for Stock Units that are forfeited.

The Company determines when your Service terminates for this purpose and all purposes under the Plan.

	
Leaves of Absence
	
For purposes of this Award, your Service does not terminate when you go on a military leave of absence, a sick leave of absence or another
bona fide leave of absence, if the leave of absence was approved by the Company in writing and if continued crediting of Service is required by
the terms of the leave or by applicable law.  Your Service will terminate when the approved leave of absence ends unless you immediately
return to active work.

	
Nature of Stock Units
	
Your Stock Units are mere bookkeeping entries. They represent only the Company's unfunded and unsecured promise to issue shares of
Common Stock (or distribute cash) on a future date. As a holder of Stock Units, you have no rights other than the rights of a general creditor of
the Company.

	
No Voting Rights or Dividends
	
Your Stock Units carry neither voting rights nor rights to dividends. You, or your estate or heirs, have no rights as a stockholder of the
Company unless and until your Stock Units are settled by issuing shares of the Company's Common Stock.  No adjustments will be made for
dividends or other rights if the applicable record date occurs before your stock certificate is issued, except as described in the Plan.

	
Stock Units Nontransferable
	
You may not sell, transfer, assign, pledge or otherwise dispose of any Stock Units. For instance, you may not use your Stock Units as
security for a loan.

	
Settlement of Stock Units
	
Each of your Stock Units will be settled when it vests in installments, as shown in the Notice of Stock Unit Award, subject to any applicable
change in control agreement (or other agreement affecting vesting) between you and the Company.  

No additional Stock Units will vest after your common-law employment with the Company or a Subsidiary has terminated for any reason.

At the time of settlement, you will receive one share of the Company's Common Stock for each vested Stock Unit; provided, however, that
no fractional Share will be issued or delivered pursuant to the Plan or this Agreement, and the Committee will determine whether cash will be
paid in lieu of any fractional Share or whether such fractional Share and any rights thereto will be canceled, terminated or otherwise
eliminated.

	
Withholding Taxes and Stock Withholding
	
No stock certificates will be distributed to you unless any withholding taxes that may be due as a result of this award have been paid. By
your electronic acceptance of this Agreement, you authorize the Company or your actual employer to withhold all applicable withholding taxes
legally payable by you.  The Company, in its sole discretion, may withhold shares of Common Stock that otherwise would be distributed to you
when the units are settled to satisfy the withholding obligation, but not in excess of the amount of shares necessary to satisfy the minimum
withholding amount.  The Fair Market Value of these shares, determined as of the date when taxes otherwise would have been withheld in
cash, will be applied to the withholding taxes.  You also authorize the Company, or your actual employer, to satisfy all withholding obligations of
the Company or your actual employer from your wages or other cash compensation payable to you by the Company or your actual
employer.

	
Employer Fringe Benefit Taxes
	

To the extent permitted by applicable federal, state, local and foreign law, you explicitly and unambiguously consent and
agree to assume any liability for any fringe benefit tax that may be payable by the Company, or your actual employer, in connection with the
Stock Units granted under this Agreement.

Further, you agree (a) that the Company, or your actual employer, may collect the fringe benefit tax from you by any reasonable method
established by the Company, or your actual employer, and (b) to execute any other consents or elections required to accomplish the above,
promptly upon request of the Company, or your actual employer.

	
Restrictions on Resale
	
You agree not to sell any shares of the Company's Common Stock issued upon settlement of the Stock Units at a time when applicable
laws, Company policies or an agreement between the Company and its underwriters prohibit a sale. This restriction will apply as long as your
Service continues and for such period of time after the termination of your Service as the Company may specify.

	
No Retention Rights
	
Neither your Award nor this Agreement gives you the right to be employed or retained by the Company or a subsidiary of the Company in
any capacity. The Company and its subsidiaries reserve the right to terminate your Service at any time, with or without cause.

	
Adjustments
	
In the event of a stock split, a stock dividend or a similar change in Company stock, the number of Stock Units covered by this Award shall
be adjusted pursuant to the Plan.  

	
Applicable Law
	
This Agreement will be interpreted and enforced under the laws of the State of California (without regard to choice-of-law provisions).

	
Notice
	
Any notice required or permitted under this Agreement shall be given electronically to the last known e-mail address or at such other e-mail
address as such party may designate by ten (10) days' advance written notice to the other party hereto or in writing and shall be deemed
effectively given upon the earliest of personal delivery, receipt or the third full day following deposit in the United States Post Office with postage
and fees prepaid, addressed to the other party hereto at the address last known or at such other address as such party may designate by ten
(10) days' advance written notice to the other party hereto.

	
The Plan and Other Agreements
	
The text of this Plan is incorporated in this Agreement by reference.  Subject to any applicable change in control agreement (or other
agreement affecting vesting) between you and the Company, this Agreement and the Plan constitute the entire understanding between you and
the Company regarding this award.  Any prior agreements, commitments or negotiations concerning this award are superseded.  This
Agreement may be amended only by another written agreement between the parties.

	
Successors and Assigns
	
The rights and benefits of this Agreement shall inure to the benefit of, and be enforceable by, the Company's successors and assigns.

BY YOUR ELECTRONIC ACCEPTANCE OF THIS AGREEMENT,

YOU AGREE TO ALL OF THE TERMS AND CONDITIONS

DESCRIBED ABOVE AND IN THE PLAN.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00143-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00143-of-00352.parquet"}]]