Document:

Filed by Automated Filing Services Inc. (604) 609-0244 - Infitech Ventures Inc. - Exhibit 10.1

 TECHNOLOGY TRANSFER AGREEMENT

THIS AGREEMENT made effective as of the 6th day of May, 2004 

BETWEEN: 

  
    
      
         WILLIAM ERNEST NELSON, of Suite 3, 27 Gore
          Street West, Perth, Ontario

         (hereafter called the “Inventor”) 

      

    

  

 OF THE FIRST PART 

AND: 

  
    
      
         INFITECH VENTURES INC., a Nevada corporation, having
          an office at 20 Lyall Avenue, Toronto, Ontario

         (hereafter called “Infitech”) 

      

    

  

 OF THE SECOND PART 

WHEREAS: 

	 I.      	 The Inventor is the owner of an invention that has
        applied for a Canadian patent, which invention is held in the name of
        the Inventor; and 

	 
	 II.      	 The parties have agreed to enter into this Agreement
        to reflect the sale by the Inventor and the purchase by Infitech of all
        property, including all patents, know- how and intellectual property,
        relating to the invention; 

 NOW THEREFORE, in consideration of the mutual covenants
  contained in this Agreement and other valuable consideration, the receipt and
  sufficiency of which is hereby acknowledged, the parties agree as follows: 

DEFINITIONS 

	 1.      	 In this Agreement: 
	 
	 	 (a)      	 “1933 Act” means the United States Securities
        Act of 1933, as amended; 

	 
	 	 (b)      	 “Effective Date” means the date first
        set out in this Agreement; 

	 
	 	 (c)      	 “Formulation” means the synthetic wax
        mixture of paraffin wax and resins used to clean oil spills in still bodies
        of water and shorelines as is described in the Patent and incorporating
        the Patent, the Know-how and/or the Intellectual Property; 

 

	 	 (d)      	 “Improvement” means any modification
        or variant of the Invention, whether patentable or not, which, if manufactured,
        used, or sold, would fall within the scope of the Patent; 

	 
	 	 (e)      	 “Intellectual Property” means all copyrights,
        patent rights, trade secret rights, trade names, trademark rights, process
        information, technical information, contract rights and obligations, designs,
        drawings, inventions and all other intellectual and industrial property
        rights of any sort related to or associated with the Invention and the
        Formulation, including, but not limited to, the Patent; 

	 
	 	 (f)      	 “Invention” means the inventions described
        in the Patent and embodied in the Formulation; 

	 
	 	 (g)      	 “Know-how” means all know-how, knowledge,
        expertise, inventions, works of authorship, prototypes, technology, information,
        know-how, materials and tools relating thereto or to the design, development,
        manufacture, use and commercial application of the Invention and the Formulation;
      

	 
	 	 (h)      	 “Ontario Securities Act” means the Ontario
        Securities Act, as amended; 

	 
	 	 (i)      	 “Patent” means the patents and patent
        applications described in Schedule A to this Agreement and any other patent
        that may be issued in connection with the Invention, the Formulation or
        any Improvement; and 

	 
	 	 (j)      	 “Technology“ means, collectively, the
        Formulation, the Invention, the Patent, the Know-How and the Intellectual
        Property. 

TRANSFER BY INVENTOR 

	 2.      	 Subject to the terms and conditions of this Agreement,
        including delivery of the consideration as provided in this Agreement,
        the Inventor hereby sells, assigns and transfers to Infitech all of the
        Inventor’s right, title and interest in and to the Technology free
        and clear of all liens, charges, encumbrances and security interests.
      

	 
	 3.      	 The Inventor shall assist Infitech in every legal
        way to evidence, record and perfect the assignment evidenced by this Agreement
        and to apply for and obtain recordation of, and from time to time enforce,
        maintain and defend, the assigned rights embodied in the Technology. To
        the extent that any of the Intellectual Property is a provisional patent,
        the Inventor shall cooperate with Infitech and the Canadian Intellectual
        Property Office to attempt to obtain a final grant of those provisional
        patents and, to the extent any such provisional patents are actually issued
        in the Inventor's name, the Inventor shall promptly assign and transfer
        such patents, at no cost (except for any filing and recordation fees which
        shall be 

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	 	 borne by Infitech), to Infitech. If Infitech is
        unable, for any reason whatsoever, to secure the Inventor’s signature
        to any document it is entitled to under this Agreement, the Inventor hereby
        irrevocably designates and appoints Infitech and its duly authorized officers
        and agents as the Inventor’s agent and attorney-in- fact with full
        power of substitution to act for and on the Inventor’s behalf and
        instead of the Inventor, to execute and file any such document or documents
        and to do all other lawfully permitted acts to further the purposes of
        the foregoing with the same legal force and effect as if executed by the
        Inventor. 

	 
	 4.      	 If, after the Effective Date, the Inventor develops
        or discovers, or is a co- developer or co-discoverer of any Improvement,
        then the Inventor shall promptly sell, assign and transfer the Improvement
        to Infitech without the payment of any additional amounts or consideration.
      

	 
	 5.      	 The Inventor shall communicate to Infitech all Know-how
        and Intellectual Property in the possession of the Inventor which may
        reasonably be relevant to the design, manufacture, marketing and use of
        the Formulation and the Invention. The Inventor shall continue to communicate
        to Infitech all such further Know-how and Intellectual Property as may
        later come into the Inventor’s possession. 

	 
	 6.      	 All Know-how and technical information in the possession
        of the Inventor which may reasonably be relevant to the design, manufacture,
        marketing, and use of the Formulation and the Invention shall be deemed
        to be confidential information. The Inventor shall not disclose or authorize
        the disclosure of such information to any third party, except as expressly
        permitted by Infitech in writing. The Inventor shall take reasonable precautions
        to prevent the unauthorised disclosure to third parties of all such confidential
        information. 

CONSIDERATION 

	 7.      	 In consideration for the sale, assignment and transfer of the
      Technology by the Inventor to Infitech, Infitech shall: 
	 
	 	 (a)      	 pay to the Inventor the sum of USD $10,000 upon
        execution of this Agreement by the parties; 

	 
	 	 (b)      	 issue to the Inventor a total of 150,000 shares
        of the common stock of Infitech (the “Shares”) upon execution
        of this Agreement by the parties; and 

	 
	 	 (c)      	 pay to the Inventor a royalty fee in the amount
        of $0.10 CDN per pound of the Formulation produced by or on behalf
        of Infitech or any subsidiary, affiliate, agent or subcontractor of Infitech.
      

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CONSULTING SERVICES 

	 8.      	 The Inventor and Infitech further agree that the
        Inventor shall provide Infitech with technical consulting services with
        respect to the manufacture, use and improvement of the Technology, such
        services to be made available to Infitech for a minimum of 10 business
        days per month. 

	 
	 9.      	 In consideration for, and solely for, the provision
        of these technical consulting services by the Inventor, Infitech shall
        pay to the Inventor the sum of CDN $1,000 per month, payable on the
        first business day of each month, for a period of 12 months, commencing
        on the first such day after the Effective Date. 

RESTRICTION ON TRANSFER OF SHARES 

	 10.      	 The Inventor acknowledges and agrees that the Shares
        shall be issued pursuant to Regulation S of the 1933 Act and paragraphs
        35(1)2 and 72(1)(b) of the Ontario Securities Act and that the Inventor
        shall not resell, transfer or hypothecate the Shares without the prior
        registration of the Shares under the 1933 Act and the Ontario Securities
        Act and the prior filing of a prospectus under the Ontario Securities
        Act or an opinion of counsel satisfactory to Infitech that such registration
        and prospectus are not necessary. 

	 
	 11.      	 The Inventor shall not engage in any hedging transactions
        with regard to the Shares unless such hedging transactions are made in
        compliance with the 1933 Act. 

	 
	 12.      	 Infitech shall refuse to register any transfer of
        the Shares which is not made in accordance with applicable securities
        legislation. 

	 
	 13.      	 All certificates representing the Shares shall be
        endorsed with the following legends: 

  
    
       “THE SECURITIES REPRESENTED BY THIS CERTIFICATE
        HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE "ACT"),
        AND HAVE BEEN OFFERED AND SOLD IN RELIANCE UPON EXEMPTIONS FROM THE REGISTRATION
        REQUIREMENTS OF THE ACT. SUCH SECURITIES MAY NOT BE OFFERED FOR SALE,
        TRANSFERRED, PLEDGED OR RESOLD OR OTHERWISE TRANSFERRED IN THE UNITED
        STATES OR TO U.S. PERSONS (AS DEFINED IN REGULATION S OF THE ACT) UNLESS
        SUCH SALE, PLEDGE, RESALE OR TRANSFER IS MADE IN ACCORDANCE WITH REGULATION
        S OF THE ACT, THEY ARE REGISTERED UNDER THE APPLICABLE PROVISIONS OF THE
        ACT OR ARE EXEMPT FROM SUCH REGISTRATION REQUIREMENTS.” 

    

  

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       “NOTWITHSTANDING THE FOREGOING, UNLESS PERMITTED
        UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT TRADE
        THE SECURITY BEFORE THE DATE THAT IS 4 MONTHS AND A DAY AFTER THE LATER
        OF (i) May 6, 2004 AND (ii) THE DATE THE ISSUER BECAME
        A REPORTING ISSUER IN ANY PROVINCE OR TERRITORY OF CANADA.” 

    

  

	 14.      	 The Shares shall be issued to the Inventor based on the representations
      and warranties of the Inventor that: 
	 
	 	 (a)      	 The Inventor is acquiring the Shares for his own
        account for investment, with no present intention of dividing any interest
        with others or of reselling or otherwise disposing of all or any portion
        of the same; 

	 
	 	 (b)      	 The Inventor does not intend any sale of the Shares
        either currently or after the passage of a fixed or determinable period
        of time or upon the occurrence or non-occurrence of any predetermined
        event or circumstance; 

	 
	 	 (c)      	 The Inventor has no present or contemplated agreement,
        undertaking, arrangement, obligation, indebtedness or commitment providing
        for or which is likely to compel a disposition of the Shares; 

	 
	 	 (d)      	 The Inventor is not aware of any circumstances presently
        in existence which are likely in the future to prompt a disposition of
        the Shares; 

	 
	 	 (e)      	 The Shares were offered to the Inventor in direct
        communication between the Inventor and Infitech and not through any advertisement
        or directed sales effort of any kind; 

	 
	 	 (f)      	 The Inventor has the financial means to bear the
        economic risk of an investment in the Shares; and 

	 
	 	 (g)      	 The Inventor is not a resident of the United States
        and is otherwise not a “U.S. Person” as that term is defined
        in Regulation S of the 1933 Act and the Inventor is not acquiring the
        Shares for the account or benefit of any such U.S. Person. 

PATENT 

	 15.      	 The Inventor shall execute assignments of the Patent,
        including any patent application, in a form registerable with the applicable
        Patent authorities, at closing and without the payment of any further
        amount to the Inventor. Infitech shall undertake all steps and incur all
        expenses to maintain the Patent in good 

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	 	standing with the Canadian Intellectual Property
        Office. The Inventor shall assist Infitech in pursuing the granting of
        foreign patents. 

RECORDKEEPING 

	 16.      	 Infitech shall keep and maintain adequate records
        in relation to the calculation of royalties due to the Inventor under
        this Agreement. These records shall be prepared, stated and maintained
        by Infitech in accordance with United States generally accepted accounting
        principles and such records shall, upon reasonable notice being provided
        by the Inventor, be made available to the Inventor for the purpose of
        verifying the accuracy of the royalty payments made to the Inventor. 

WARRANTIES AND REPRESENTATIONS 

	 17.      	 The Inventor warrants and represents to Infitech that: 
	 
	 	 (a)      	 The Inventor is the sole owner of the Invention,
        the Formulation, the Patent, the Know-how and the Intellectual Property
        free and clear of all liens, charges, encumbrances and security interests
        except for those listed in Schedule A to this Agreement; 

	 
	 	 (b)      	 The Inventor has the power to sell, assign and transfer
        all of his right, title and interest in and to the Invention, the Formulation,
        the Patent, the Know-how and the Intellectual Property to Infitech; 

	 
	 	 (c)      	 The Inventor has not made, granted or entered into
        any assignment, encumbrance, license or other agreement affecting the
        Invention, the Formulation, the Patent, the Know-how and the Intellectual
        Property; 

	 
	 	 (d)      	 The Inventor is not aware of any violation, infringement
        or misappropriation of any third party's rights (or any claim thereof)
        by the ownership, development, manufacture, sale or use of the Invention,
        the Formulation, the Patent, the Know-how and the Intellectual Property;
      

	 
	 	 (e)      	 The use of the Formulation by the Inventor has never
        given rise to any complaint alleging infringement of any patent, trademarks
        or other intellectual property rights of any other person; 

	 
	 	 (f)      	 The Inventor was not acting within the scope of
        employment of any third party when conceiving, creating or otherwise performing
        any activity with respect to the Invention, the Formulation, the Patent,
        the Know-how and the Intellectual Property; 

	 
	 	 (g)      	 The Inventor is not aware of any questions or challenges
        with respect to the patentability or validity of any claims of any existing
        patents or patent 

 6 

 

	 	 	 pendings relating to the Invention, the Formulation,
        the Patent, the Know- how and the Intellectual Property; and 

	 
	 	 (h)      	 The Patent, including any patent applications, have
        been filed with the appropriate patent authorities in accordance with
        all required laws and regulations and are in good standing. 

ENTIRE AGREEMENT 

	 18.      	 This Agreement constitutes the entire agreement
        between the parties, relating to the subject matter hereof and supersedes
        every previous agreement, communication, expectation, negotiation, representation
        or understanding, whether oral or written, express or implied, statutory
        or otherwise. 

HEADINGS 

	 19.      	 The headings are inserted solely for convenience
        of reference and shall not be deemed to restrict or modify the meaning
        of the Articles to which they pertain. 

MODIFICATION AND WAIVER 

	 20.      	 No cancellation, modification, amendment, deletion,
        addition or other change in this Agreement or any provision hereof, or
        waiver of any right or remedy hereby provided, shall be effective for
        any purpose unless specifically set forth in writing, signed by the party
        to be bound thereby. No waiver of any right or remedy in respect of any
        occurrence or event on one occasion shall be deemed a waiver of such right
        or remedy in respect of such occurrence or event on any other occasion.
      

FURTHER ASSURANCES 

	 21.      	 The parties shall execute such further documents
        and do such further things as may be necessary to give full effect to
        the provisions of this Agreement and the intent embodied herein. 

GENDER 

	 22.      	 Words importing the masculine gender include the
        feminine or neuter, words in the singular include the plural, words importing
        a corporate entity include individuals and vice versa. 

EQUAL PARTICIPATION IN DRAFTING 

	 23.      	 The parties have equally participated in the drafting
        of the within Agreement, each having had the opportunity to be independently
        represented by counsel. The Inventor acknowledges that O’Neill Law
        Group PLLC have acted solely for 

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	 	Infitech in connection with the preparation, negotiation
        and execution of this Agreement and the Inventor has been advised to obtain
        the advice of independent legal counsel in entering into this Agreement.
      

CLOSING 

	 24.      	 Closing shall take place at the offices of Infitech
        forthwith on execution of this Agreement. At the closing, Infitech shall
        deliver to the Inventor certificates evidencing the Shares and a certified
        check payable to the Inventor in the amount of USD $10,000 and the
        Inventor shall deliver the assignments of the Patent referred to in Paragraph
        15 of this Agreement. 

 [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK] 

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TIME OF THE ESSENCE 

	 25.      	 Time shall be of the essence of this Agreement and all provisions hereof.
    

 IN WITNESS WHEREOF, the parties hereto have caused
  these presents to be executed under their corporate seals and the hands of their
  proper officers duly authorized in that behalf. 

	 SIGNED, SEALED AND DELIVERED  	 )  	  
	 BY WILLIAM ERNEST NELSON  	 )  	  
	 in the presence of:  	 )  	  
	  	 )  	  
	  	 )  	  
	 /s/
      Signed  	 )  	  
	 Signature of Witness  	 )  	  
	  	 )  	 /s/ William
      E. Nelson  
	 Supervisor
      – Prov. Offences Court  	 )  	 WILLIAM ERNEST NELSON  
	 Name of Witness  	 )  	  
	  	 )  	  
	 80
      Gore St. E.,  	 )  	  
	 Address of Witness  	 )  	  
	  	 )  	  
	 Perth,
      Ont. K7H 1R9  	 )  	  
	  	 )  	  
	 a Commissioner, etc., County of Lanark, 
    	  	  
	 for the Corporation of the Town of Perth 
    	  	  
	 Expires February 5, 2005  	  	  
	  	 	 
	 INFITECH VENTURES INC.  	  	  
	 By its authorized signatory:  	  	  
	  	 	 
	  	 	 
	 /s/ Paul G. Daly  	  	  
	 Name    Paul G. Daly  	  	  
	 Title      President 
    	  	  

 9 

 SCHEDULE A

 PERMITTED ENCUMBRANCES

 None. 

PATENTS AND PATENT APPLICATIONS 

	 1.      	 Canadian Patent Application No. CA2314066 

 10Exhibit
10.3

 

SILICON
LABORATORIES INC.

STOCK
OPTION AGREEMENT

 

RECITALS

 

A.                                   The
Board has adopted the Plan for the purpose of retaining the services of
selected Employees, non-employee members of the Board or of the board of
directors of any Parent or Subsidiary and consultants and other independent
advisors who provide services to the Corporation (or any Parent or Subsidiary).

 

B.                                     Optionee
is to render valuable services to the Corporation (or a Parent or Subsidiary),
and this Agreement is executed pursuant to, and is intended to carry out the
purposes of, the Plan in connection with the Corporation’s grant of an option
to Optionee.

 

C.                                     All
capitalized terms in this Agreement shall have the meaning assigned to them in
the attached Appendix.

 

NOW, THEREFORE,
it is hereby agreed as follows:

 

1.                                       Grant of Option.  The Corporation hereby grants to Optionee, as
of the Grant Date, an option to purchase up to the number of Option Shares
specified in the Grant Notice.  The
option shares shall be purchasable from time to time during the option term
specified in Paragraph 2 at the Exercise Price.

 

2.                                       Option Term.  This option shall have a maximum term of ten
(10) years measured from the Grant Date and shall accordingly expire at the
close of business on the Expiration Date, unless sooner terminated in
accordance with Paragraph 5 or 6.

 

3.                                       Limited Transferability.  This option shall be neither transferable nor
assignable by Optionee other than by will or by the laws of descent and
distribution following Optionee’s death and may be exercised, during Optionee’s
lifetime, only by Optionee.  However, if
this option is designated a Non-Statutory Option in the Grant Notice, then this
option may be assigned in whole or in part during Optionee’s lifetime either as
(i) a gift to one or more family members of Optionee’s Immediate Family,
to a trust in which Optionee and/or one or more such family members hold more
than fifty percent (50%) of the beneficial interest or an entity in which more
than fifty percent (50%) of the voting interests are owned by Optionee and/or
one or more such family members, or (ii) pursuant to a domestic relations
order.  The assigned portion shall be
exercisable only by the person or persons who acquire a proprietary interest in
the option pursuant to such assignment. 
The terms applicable to the assigned portion shall be the same as those
in effect for this option immediately prior to such assignment and shall be set
forth in such documents issued to the assignee as the Plan Administrator may
deem appropriate.

 

4.                                       Dates of Exercise.  This option shall become exercisable for the
Option Shares in one or more installments as specified in the Grant
Notice.  As the option becomes exercisable
for such installments, those installments shall accumulate, and the option
shall remain exercisable for the accumulated installments until the Expiration
Date or sooner termination of the option term under Paragraph 5 or 6.

 

 

5.                                       Cessation of Service.  The option term specified in Paragraph 2
shall terminate (and this option shall cease to be outstanding) prior to the
Expiration Date should any of the following provisions become applicable:

 

(i)                                     Should
Optionee cease to remain in Service for any reason (other than death, Permanent
Disability or Misconduct) while this option is outstanding, then this option
shall remain exercisable until the earlier of (i) the expiration of
the three (3)-month period measured from the date of such cessation of Service
or (ii) the Expiration Date.

 

(ii)                                  Should
Optionee die while holding this option, then Optionee’s Beneficiary shall have
the right to exercise this option until the earlier of (A) the
expiration of the twelve (12)-month period measured from the date of Optionee’s
death or (B) the Expiration Date.

 

(iii)                               Should
Optionee cease Service by reason of Permanent Disability while this option is
outstanding, then this option shall remain exercisable until the earlier of
(i) the expiration of the twelve (12)-month period measured from the date
of such cessation of Service or (ii) the Expiration Date.

 

(iv)                              During
the applicable post-Service exercise period, this option may not be exercised
in the aggregate for more than the number of vested Option Shares for which the
option is exercisable on the date of Optionee’s cessation of Service.  Upon the expiration of the applicable
exercise period or (if earlier) upon the Expiration Date, this option shall
terminate and cease to be outstanding for any vested Option Shares for which
the option has not been exercised. 
However, this option shall, immediately upon Optionee’s cessation of
Service for any reason, terminate and cease to be outstanding to the extent
this option is not otherwise at that time exercisable for vested shares.

 

(v)                                 Should
Optionee’s Service be terminated for Misconduct or should Optionee engage in
Misconduct while this option is outstanding, then this option shall terminate
immediately and cease to be outstanding.

 

6.                                       Special Acceleration of Option.

 

(a)                                  In
the event of a Change in Control, this option, to the extent outstanding at that
time but not otherwise fully exercisable, shall automatically accelerate so
that this option shall, immediately prior to the effective date of the Change
in Control, become exercisable for all of the Option Shares at the time subject
to this option and may be exercised for any or all of those Option Shares as
fully-vested shares of Common Stock.  No
such acceleration of this option, however, shall occur if and to the extent:
(i) this option is, in connection with the Change in Control, assumed or
otherwise continued in full force and effect by the successor corporation (or
parent thereof) pursuant to the terms of the Change in Control or (ii) this
option is replaced with a cash incentive program of the successor corporation
which preserves the spread existing at the time of the Change in Control on the
Option Shares for which this option is not otherwise at that time exercisable
(the excess of the Fair Market Value of those Option Shares over the aggregate
Exercise Price payable for such shares) and provides for subsequent pay-out in
accordance with the same option exercise schedule set forth in the Grant
Notice.

 

2

 

(b)                                 Immediately
following the consummation of the Change in Control, this option shall terminate
and cease to be outstanding, except to the extent assumed by the successor
corporation (or parent thereof) or otherwise expressly continued in full force
and effect pursuant to the terms of the Change in Control.

 

(c)                                  If
this option is assumed in connection with a Change in Control, then this option
shall be appropriately adjusted, immediately after such Change in Control, to
apply to the number and class of securities which would have been issuable to
Optionee in consummation of such Change in Control had the option been
exercised immediately prior to such Change in Control, and appropriate
adjustments shall also be made to the Exercise Price, provided the aggregate
Exercise Price shall remain the same.

 

(d)                                 This
Agreement shall not in any way affect the right of the Corporation to adjust,
reclassify, reorganize or otherwise change its capital or business structure or
to merge, consolidate, dissolve, liquidate or sell or transfer all or any part
of its business or assets.

 

7.                                       Adjustment in Option Shares.  Should any change be made to the Common Stock
by reason of any stock split, stock dividend, recapitalization, combination of
shares, exchange of shares or other change affecting the outstanding Common
Stock as a class without the Corporation’s receipt of consideration,
appropriate adjustments shall be made to (i) the total number and/or class
of securities subject to this option and (ii) the Exercise Price in order
to reflect such change and thereby preclude a dilution or enlargement of benefits
hereunder.

 

8.                                       Stockholder Rights.  The holder of this option shall not have any
stockholder rights with respect to the Option Shares until such person shall
have exercised the option, paid the Exercise Price and become a holder of
record of the purchased shares.

 

9.                                       Manner of Exercising Option.  In order to exercise this option with respect
to all or any part of the Option Shares for which this option is at the time
exercisable, Optionee (or any other person or persons exercising the option)
must take the following actions:

 

(i)                                     Execute
and deliver to the Corporation a Notice of Exercise for the Option Shares for
which the option is exercised.

 

(ii)                                  Pay
the aggregate Exercise Price for the purchased shares in one or more of the
following forms:

 

(A)                              cash
or check made payable to the Corporation;

 

3

 

(B)                                a
promissory note payable to the Corporation, but only to the extent authorized
by the Plan Administrator in accordance with Paragraph 13;

 

(C)                                shares
of Common Stock held by Optionee (or any other person or persons exercising the
option) for the requisite period necessary to avoid a charge to the Corporation’s
earnings for financial reporting purposes and valued at Fair Market Value on
the Exercise Date; or

 

(D)                               through
a special sale and remittance procedure pursuant to which Optionee (or any
other person or persons exercising the option) shall concurrently provide
irrevocable instructions (I) to a Corporation-approved brokerage firm to
effect the immediate sale of the purchased shares and remit to the Corporation,
out of the sale proceeds available on the settlement date, sufficient funds to
cover the aggregate Exercise Price payable for the purchased shares plus all
applicable income and employment taxes required to be withheld by the
Corporation by reason of such exercise and (II) to the Corporation to
deliver the certificates for the purchased shares directly to such brokerage
firm in order to complete the sale.

 

Except to the
extent the sale and remittance procedure is utilized in connection with the
option exercise, payment of the Exercise Price must accompany the Notice of
Exercise delivered to the Corporation in connection with the option exercise.

 

(iii)                               Furnish
to the Corporation appropriate documentation that the person or persons
exercising the option (if other than Optionee) have the right to exercise this
option.

 

(iv)                              Make
appropriate arrangements with the Corporation (or Parent or Subsidiary
employing or retaining Optionee) for the satisfaction of all income and
employment tax withholding requirements applicable to the option exercise.

 

(b)                                 As
soon as practical after the Exercise Date, the Corporation shall issue to or on
behalf of Optionee (or any other person or persons exercising this option) a
certificate for the purchased Option Shares, with the appropriate legends
affixed thereto.

 

(c)                                  In
no event may this option be exercised for any fractional shares.

 

10.                                 Compliance with Laws and Regulations.

 

(a)                                  The
exercise of this option and the issuance of the Option Shares upon such
exercise shall be subject to compliance by the Corporation and Optionee with
all applicable requirements of law relating thereto and with all applicable
regulations of any stock exchange (or the Nasdaq National Market, if applicable)
on which the Common Stock may be listed for trading at the time of such
exercise and issuance.

 

4

 

(b)                                 The
inability of the Corporation to obtain approval from any regulatory body having
authority deemed by the Corporation to be necessary to the lawful issuance and
sale of any Common Stock pursuant to this option shall relieve the Corporation
of any liability with respect to the non-issuance or sale of the Common Stock
as to which such approval shall not have been obtained.  The Corporation, however, shall use its best
efforts to obtain all such approvals.

 

11.                                 Successors and Assigns.  Except to the extent otherwise provided in
Paragraphs 3 and 6, the provisions of this Agreement shall inure to the benefit
of, and be binding upon, the Corporation and its successors and assigns and
Optionee and Optionee’s assigns and Beneficiaries.

 

12.                                 Notices.  Any notice required to be given or delivered
to the Corporation under the terms of this Agreement shall be in writing and
addressed to the Corporation at its principal corporate offices.  Any notice required to be given or delivered
to Optionee shall be in writing and addressed to Optionee at the address
indicated below Optionee’s signature line on the Grant Notice.  All notices shall be deemed effective upon
personal delivery or upon deposit in the U.S. mail, postage prepaid and
properly addressed to the party to be notified.

 

13.                                 Financing.  The Plan Administrator may, in its absolute
discretion and without any obligation to do so, permit Optionee to pay the
Exercise Price for the purchased Option Shares by delivering a full-recourse
promissory note payable to the Corporation. 
The terms of any such promissory note (including the interest rate, the
requirements for collateral and the terms of repayment) shall be established by
the Plan Administrator in its sole discretion.

 

14.                                 Construction.  This Agreement and the option evidenced
hereby are made and granted pursuant to the Plan and are in all respects
limited by and subject to the terms of the Plan.  All decisions of the Plan Administrator with
respect to any question or issue arising under the Plan or this Agreement shall
be conclusive and binding on all persons having an interest in this option.

 

15.                                 Governing Law.  The interpretation, performance and
enforcement of this Agreement shall be governed by the laws of the State of
Texas without resort to that State’s conflict-of-laws rules.

 

16.                                 Excess Shares.  If the Option Shares covered by this
Agreement exceed, as of the Grant Date, the number of shares of Common Stock
which may without stockholder approval be issued under the Plan, then this
option shall be void with respect to those excess shares, unless stockholder
approval of an amendment sufficiently increasing the number of shares of Common
Stock issuable under the Plan is obtained in accordance with the provisions of
the Plan.

 

17.                                 Additional Terms Applicable to an Incentive Option.  In the event this option is designated an
Incentive Option in the Grant Notice, the following terms and conditions shall
also apply to the grant:

 

(i)                                     This
option shall cease to qualify for favorable tax treatment as an Incentive
Option if (and to the extent) this option is exercised for one or more Option
Shares: (A) more than three (3) months after the date Optionee ceases to
be an Employee for any reason other than death or Permanent Disability or
(B) more than twelve (12) months after the date Optionee ceases to be an
Employee by reason of Permanent Disability.

 

5

 

(ii)                                  No
installment under this option shall qualify for favorable tax treatment as an
Incentive Option if (and to the extent) the aggregate Fair Market Value
(determined at the Grant Date) of the Common Stock for which such installment
first becomes exercisable hereunder would, when added to the aggregate value
(determined as of the respective date or dates of grant) of the Common Stock or
other securities for which this option or any other Incentive Options granted
to Optionee prior to the Grant Date (whether under the Plan or any other option
plan of the Corporation or any Parent or Subsidiary) first become exercisable
during the same calendar year, exceed One Hundred Thousand Dollars ($100,000)
in the aggregate.  Should such One
Hundred Thousand Dollar ($100,000) limitation be exceeded in any calendar year,
this option shall nevertheless become exercisable for the excess shares in such
calendar year as a Non-Statutory Option.

 

(iii)                               Should
the exercisability of this option be accelerated upon a Change in Control, then
this option shall qualify for favorable tax treatment as an Incentive Option
only to the extent the aggregate Fair Market Value (determined at the Grant
Date) of the Common Stock for which this option first becomes exercisable in
the calendar year in which the Change in Control occurs does not, when added to
the aggregate value (determined as of the respective date or dates of grant) of
the Common Stock or other securities for which this option or one or more other
Incentive Options granted to Optionee prior to the Grant Date (whether under
the Plan or any other option plan of the Corporation or any Parent or
Subsidiary) first become exercisable during the same calendar year, exceed One
Hundred Thousand Dollars ($100,000) in the aggregate.  Should the applicable One Hundred Thousand
Dollar ($100,000) limitation be exceeded in the calendar year of such Change in
Control, the option may nevertheless be exercised for the excess shares in such
calendar year as a Non-Statutory Option.

 

(iv)                              Should
Optionee hold, in addition to this option, one or more other options to
purchase Common Stock which become exercisable for the first time in the same
calendar year as this option, then the foregoing limitations on the
exercisability of such options as Incentive Options shall be applied on the
basis of the order in which such options are granted.

 

18.                                 Leave of Absence.  The following provisions shall apply upon the
Optionee’s commencement of an authorized leave of absence:

 

(i)                                     The
exercise schedule in effect under the Grant Notice shall be frozen as of
the first day of the authorized leave, and this option shall not become
exercisable for any additional installments of the Option Shares during the
period Optionee remains on such leave.

 

6

 

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

 

(iii)                               If
this option is designated as an Incentive Option in the Grant Notice, then the
following additional provision shall apply:

 

(A)                              If
the leave of absence continues for more than ninety (90) days, then this option
shall automatically convert to a Non-Statutory Option at the end of the three
(3)-month period measured from the ninety-first (91st) day of such leave,
unless Optionee’s reemployment rights are guaranteed by statute or by written
agreement.  Following any such conversion
of this option, all subsequent exercises of this option, whether effected
before or after Optionee’s return to active Employee status, shall result in an
immediate taxable event, and the Corporation shall be required to collect from
Optionee the income and employment withholding taxes applicable to such exercise.

 

(iv)                              In
no event shall this option become exercisable for any additional Option Shares
or otherwise remain outstanding if Optionee does not resume Employee status
prior to the Expiration Date of the option term.

 

7

 

EXHIBIT
I

 

NOTICE
OF EXERCISE

 

I hereby notify Silicon Laboratories Inc.
(the “Corporation”) that I elect to purchase                 
shares of the Corporation’s Common Stock (the “Purchased Shares”) at the option
exercise price of $                             
per share (the “Exercise Price”) pursuant to that certain option (the “Option”)
granted to me under the Corporation’s 2000 Stock Incentive Plan on                       .

 

Concurrently with the delivery of this
Exercise Notice to the Corporation, I shall hereby pay to the Corporation the
Exercise Price for the Purchased Shares in accordance with the provisions of my
agreement with the Corporation (or other documents) evidencing the Option and
shall deliver whatever additional documents may be required by such agreement
as a condition for exercise. 
Alternatively, I may utilize the special broker-dealer sale and
remittance procedure specified in my agreement to effect payment of the
Exercise Price. 

 

	
   

  	
   

  	
   

  	
   

  
	
  Date

  	
   

  	
   

  
	
   

  	
   

  	
  Optionee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Print name in exact manner it is to appear
  on the stock certificate:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Address to which certificate is to be sent,
  if different from address above:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Social Security Number:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Employee Number

  	
   

  	
   

  

 

 

APPENDIX

 

The following definitions shall be in effect
under the Agreement:

 

A.                                   Agreement shall mean this Stock Option
Agreement.

 

B.                                     Beneficiary shall mean, in the event
the Plan Administrator implements a beneficiary designation procedure, the
person designated by Optionee, pursuant to such procedure, to succeed to
Optionee’s rights under the option evidenced by this Agreement to the extent
the option is held by Optionee at the time of death.  In the absence of such designation or
procedure, the Beneficiary shall be the personal representative of the estate
of Optionee or the person or persons to whom the option is transferred by will
or the laws of descent and distribution.

 

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

 

D.                                    Change in Control shall mean a change
in ownership or control of the Corporation effected through any of the
following transactions:

 

(a)                                  a
merger, consolidation or reorganization approved by the Corporation’s
stockholders, unless securities representing more than fifty percent (50%) of
the total combined voting power of the voting securities of the successor
corporation are immediately thereafter beneficially owned, directly or
indirectly and in substantially the same proportion, by the persons who
beneficially owned the Corporation’s outstanding voting securities immediately
prior to such transaction.

 

(b)                                 any
stockholder-approved transfer or other disposition of all or substantially all
of the Corporation’s assets, or

 

(c)                                  the
acquisition, directly or indirectly by any person or related group of persons
(other than the Corporation or a person that directly or indirectly controls,
is controlled by, or is under common control with, the Corporation), of
beneficial ownership (within the meaning of Rule 13d-3 of the 1934 Act) of
securities possessing more than fifty percent (50%) of the total combined
voting power of the Corporation’s outstanding securities pursuant to a tender
or exchange offer made directly to the Corporation’s stockholders which the
Board recommends such stockholders to accept.

 

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

 

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

 

G.                                     Corporation shall mean Silicon
Laboratories Inc., a Delaware corporation.

 

H.                                    Employee shall mean an individual who
is in the employ of the Corporation (or any Parent or Subsidiary), subject to
the control and direction of the employer entity as to both the work to be
performed and the manner and method of performance.

 

A-1

 

I.                                         Exercise Date shall mean the date on
which the option shall have been exercised in accordance with Paragraph 9 of
the Agreement.

 

J.                                        Exercise Price shall mean the exercise
price per share as specified in the Grant Notice.

 

K.                                    Expiration Date shall mean the date on
which the option expires as specified in the Grant Notice.

 

L.                                      Fair Market Value per share of Common
Stock on any relevant date shall be determined in accordance with the following
provisions:

 

(i)                                     If
the Common Stock is at the time traded on the Nasdaq National Market, then the
Fair Market Value shall be the closing selling price per share of Common Stock
on the date in question, as the price is reported by the National Association
of Securities Dealers on the Nasdaq National Market or any successor
system.  If there is no closing selling
price for the Common Stock on the date in question, then the Fair Market Value
shall be the closing selling price on the last preceding date for which such
quotation exists.

 

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

 

M.                                 Grant Date shall mean the date of grant
of the option as specified in the Grant Notice.

 

N.                                    Grant Notice shall mean the Notice of
Grant of Stock Option accompanying the Agreement, pursuant to which Optionee
has been informed of the basic terms of the option evidenced hereby.

 

O.                                    Immediate Family of Optionee shall mean
Optionee’s child, stepchild, grandchild, parent, stepparent, grandparent,
spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law,
daughter-in-law, brother-in-law or sister-in-law, including adoptive
relationships.

 

P.                                      Incentive Option shall mean an option
which satisfies the requirements of Code Section 422.

 

Q.                                    Misconduct shall mean the commission of
any act of fraud, embezzlement or dishonesty by Optionee, any unauthorized use
or disclosure by Optionee of confidential information or trade secrets of the
Corporation (or any Parent or Subsidiary), or any intentional wrongdoing by
Optionee, whether by omission or commission, which adversely affects the
business or affairs of the Corporation (or any Parent or Subsidiary) in a
material manner.  The foregoing
definition shall not limit the grounds for the dismissal or discharge of
Optionee or any other individual in the Service of the Corporation (or any
Parent or Subsidiary).

 

A-2

 

R.                                     Non-Statutory Option shall mean an
option not intended to satisfy the requirements of Code Section 422.

 

S.                                      Notice of Exercise shall mean the
notice of exercise in the form attached hereto as Exhibit I.

 

T.                                     Option Shares shall mean the number of
shares of Common Stock subject to the option as specified in the Grant Notice.

 

U.                                    Optionee shall mean the person to whom
the option is granted as specified in the Grant Notice.

 

V.                                     Parent shall mean any corporation
(other than the Corporation) in an unbroken chain of corporations ending with
the Corporation, provided each corporation in the unbroken chain (other than
the Corporation) owns, at the time of the determination, stock possessing fifty
percent (50%) or more of the total combined voting power of all classes of
stock in one of the other corporations in such chain.

 

W.                                Permanent Disability shall mean the
inability of Optionee to engage in any substantial gainful activity by reason
of any medically determinable physical or mental impairment which is expected
to result in death or has lasted or can be expected to last for a continuous
period of twelve (12) months or more.

 

X.                                    Plan shall mean the Corporation’s 2000
Stock Incentive Plan.

 

Y.                                     Plan Administrator shall mean either
the Board or a committee of the Board acting in its administrative capacity
under the Plan.

 

Z.                                     Service shall mean Optionee’s
performance of services for the Corporation (or any Parent or Subsidiary) in
the capacity of an Employee, a non-employee member of the board of directors or
a consultant or independent advisor.

 

AA.                         Stock Exchange shall mean the American
Stock Exchange or the New York Stock Exchange.

 

BB.                             Subsidiary shall mean any corporation
(other than the Corporation) in an unbroken chain of corporations beginning
with the Corporation, provided each corporation (other than the last
corporation) in the unbroken chain owns, at the time of the determination,
stock possessing fifty percent (50%) or more of the total combined voting power
of all classes of stock in one of the other corporations in such chain.

 

A-3

Grant No.                     

 

SILICON
LABORATORIES INC.

NOTICE
OF GRANT OF STOCK OPTION

 

Notice is hereby given of the following
option grant (the “Option”) to purchase shares of the Common Stock of Silicon
Laboratories Inc. (the “Corporation”):

 

Optionee:

 

Grant Date:

 

Vesting
Commencement Date:

 

Exercise Price:  $           per
share

 

Number of
Option Shares:

 

Expiration
Date:

 

Type of Option:                 
             Incentive
Stock Option

 

             Non-Statutory
Stock Option

 

Exercise Schedule:

 

Optionee understands and agrees that the
Option is granted subject to and in accordance with the terms of the Silicon
Laboratories Inc. 2000 Stock Incentive Plan (the “Plan”).  Optionee further agrees to be bound by the
terms of the Plan and the terms of the Option as set forth in the Stock Option
Agreement and any Addenda to such Stock Option Agreement attached hereto as
Exhibit A.  A copy of the Plan is
available upon request made to the Corporate Secretary at the Corporation’s
principal offices.

 

No Employment or Service Contract.  Nothing in this Notice or in the attached
Stock Option Agreement or in the Plan shall confer upon Optionee any right to
continue in Service for any period of specific duration or interfere with or
otherwise restrict in any way the rights of the Corporation (or any Parent or
Subsidiary employing or retaining Optionee) or of Optionee, which rights are
hereby expressly reserved by each, to terminate Optionee’s Service at any time
for any reason, with or without cause.

 

Definitions.  All capitalized terms in this Notice shall
have the meaning assigned to them in this Notice or in the attached Stock
Option Agreement.

 

 

 

	
  DATED:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  SILICON LABORATORIES INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  OPTIONEE

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Printed
  Name:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
								

 

 

ATTACHMENTS

Exhibit A - Stock Option
Agreement

Addendum to Stock Option Agreement

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