Document:

Exhibit
10.4

 

MICROCHIP
TECHNOLOGY INCORPORATED

2004 EQUITY INCENTIVE PLAN

NOTICE OF STOCK OPTION GRANT

 

Unless otherwise defined herein, the terms used in this Notice of Stock
Option Grant (“Grant Notice”) shall have the same meanings as those defined in the
2004 Equity Incentive Plan (the “Plan”).

 

	
  Name of Optionee:

  	
   

  

 

Optionee has been granted an option to purchase Common Stock of the
Company, subject to the terms and conditions of this Grant Notice, the Plan and
the Stock Option Agreement attached as Exhibit A hereto (“Agreement”), as
follows:

 

	
  Grant Number:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Grant Date:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date Vesting Begins:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Vesting Period:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Exercise Price per Share:

  	
   

  	
  $

  
	
   

  	
   

  	
   

  
	
  Total Number of Shares Granted:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Total Exercise Price:

  	
   

  	
  $

  
	
   

  	
   

  	
   

  
	
  Type of Option:

  	
   

  	
  Nonstatutory Stock Option

  
	
   

  	
   

  	
   

  
	
  Term/Expiration Date:

  	
   

  	
   

  

 

Vesting Schedule.  This Option shall be exercisable, in whole or
in part, in accordance with the following schedule:  If the Grant Date and the Date Vesting Begins
are the same, then the monthly installments for the first year of the Vesting
Period will vest only in a lump sum upon the Optionee’s completion of twelve
months as an employee of [Name of Subsidiary],
measured from the Grant Date, and the balance will vest over the remainder of
the Vesting Period on a monthly basis subject to Optionee remaining an employee
of [Name of Subsidiary] continuously
through the applicable vesting dates. 
However, if the Date Vesting Begins is not the same as the Grant Date,
then the Option Shares will vest in equal monthly installments (12 x the number
of years in the Vesting Period) over Optionee’s period of continuous employment
with [Name of Subsidiary] beginning one
month after the Date Vesting Begins subject to Optionee continuously remaining
an employee of [Name of Subsidiary] through the
applicable vesting dates.

 

Termination Period.  This Option shall automatically terminate and
Optionee’s rights are forfeited with respect to any Option Shares unvested on
the date Optionee ceases to be employed by [Name of Subsidiary].
 In no event will the Option Shares vest
following the Optionee’s cessation of employment with [Name of
Subsidiary], even in the event that Optionee is employed by the
Company, a different subsidiary of the Company, or is re-employed by [Name of Subsidiary]. 
In no event shall this Option be exercised later than the
Term/Expiration Date above.

 

Choice of Languages For Employees of Canadian
Locations. 
The undersigned agrees that it is his or her express wish that this form
and all documents relating to his participation in the scheme be drawn in the
English language only.  Le soussigné convient que sa volonté expresse est
que ce formulaire ainsi que tous les documents se rapportant à sa participation
au régime soient rédigés en langue anglaise seulement.

 

Binding Agreements.  By signature of the Optionee and Company
representative below, Optionee and the Company agree that this Grant Notice,
the Agreement, and the Plan constitute Optionee’s entire agreement with respect
to this Option and agree to be bound by the terms therein.  Optionee hereby agrees to accept as binding,
conclusive and final all decisions or interpretations of the Administrator upon
any questions relating to the Plan, the Agreement, and/or this Option.  In accordance with Section 21(c) of the
Plan, this Grant Notice may not be modified adversely to Optionee’s interest
except by means of a writing signed by the Company and Optionee.  The Company will administer the Plan from the
United States of America.  The internal
laws of the State of Arizona, United States of America, but not its choice of
law principles, will govern this Option.

 

	
  OPTIONEE

  	
  MICROCHIP TECHNOLOGY INCORPORATED

  
	
   

  	
   

  
	
   

  	
   

  
	
  Optionee Signature:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
  Address:

  	
   

  	
   

  	
  Steve
  Sanghi, President and CEO

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Dated:

  	
   

  	
   

  
									

 

 

EXHIBIT A

 

MICROCHIP
TECHNOLOGY INCORPORATED

 

2004 EQUITY
INCENTIVE PLAN

 

STOCK OPTION
AGREEMENT

 

1.                                       Grant
of Option.  The Company hereby grants
to the optionee (the “Optionee”) named in the Notice of Stock Option Grant (the
“Grant Notice”), to which this Agreement is attached as Exhibit A, an option
(the “Option”) to purchase the number of Shares, as set forth in the Grant
Notice, at the exercise price per share set forth in the Grant Notice (the “Exercise
Price”), subject to the terms and conditions of the Plan, which is incorporated
herein by reference.  Subject to Section 21(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 Agreement, the terms and conditions
of the Plan shall prevail.

 

2.                                       Exercise
of Option.

 

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

 

(b)                                 Method
of Exercise.  This Option is
exercisable by delivery of an exercise notice, in the form attached as Exhibit
A-1 (the “Exercise Notice”) or in written or electronic form as designated
by the Company, 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 Stock Administrator of
the Company.  The Exercise Notice shall
be accompanied by payment of the aggregate Exercise Price as to all Exercised
Shares.  This Option shall be deemed to
be exercised upon receipt by the Company of such fully executed Exercise Notice
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:

 

(a)                                  cash;

 

(b)                                 check;
or

 

(c)                                  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 be required to effect an exercise of the
Option and delivery to the Company of the sale proceeds required to pay the
Exercise Price.

 

4.                                       Term
of Option.  This Option may be
exercised only within the term set out in the Grant Notice, and may be
exercised during such term only in accordance with the Plan and the terms of
this Agreement; provided, however that notwithstanding any contrary provision
of the Plan if a Subsidiary is expressly named in the Grant Notice then this
Option shall terminate with respect to any then unvested shares immediately
upon cessation of employment with the named subsidiary, but if no such
subsidiary is expressly named in the Grant Notice then this Option shall
terminate with respect to any then unvested shares immediately upon Optionee
ceasing to be a Service Provider.

 

 

5.                                       Grant
is not Transferable. Unless determined otherwise by the Administrator, this
Option 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 may be exercised, during the lifetime of the recipient, only
by the recipient.  If the Administrator
makes this Option transferable, the Grant Notice shall contain this additional
terms and conditions as the Administrator deems appropriate.

 

6.                                       No
Privilege of Stock Ownership. 
Neither the holder of the option granted hereunder nor any person
claiming under or through the Optionee shall have any of the rights of a
stockholder with respect to the Optioned Shares until such Optionee shall have
exercised the option, paid the Exercise Price, and received a stock certificate
for the purchased shares of Stock, or had the Shares electronically transferred
into Optionee’s account.

 

7.                                       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,
local and foreign income and minimum required 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.

 

8.                                       Acknowledgments.  The Optionee expressly acknowledges the
following:

 

(a)                                  The Company (whether
or not Optionee’s employer) is granting the Option.  That the grant of the Option, future grants
of Options, and benefits and rights provided under the Plan are at the complete
discretion of the Company and do not constitute regular or periodic
payments.  No grant of Options will be
deemed to create any obligation to grant any further Options, whether or not
such a reservation is explicitly stated at the time of such a grant.  The benefits and rights provided under the
Plan are not to be considered part of Optionee’s salary or compensation for
purposes of calculating any severance, resignation, redundancy or other end of
service payments, vacation, bonuses, long-term service awards, indemnification,
pension or retirement benefits, or any other payments, benefits or rights of
any kind.  Optionee waives any and all
rights to compensation or damages as a result of the termination of employment
with the Company or its subsidiaries for any reason whatsoever insofar as those
rights result or may result from:

 

(i)                                     the
loss or diminution in value of such rights under the Plan, or

 

(ii)                                  Optionee
ceasing to have any rights under, or ceasing to be entitled to any rights under
the Plan as a result of such termination.

 

(b)                                 The Company has the
right, at any time to amend, suspend or terminate the Plan.  The Plan will not be deemed to constitute,
and will not be construed by Optionee to constitute, part of the terms and
conditions of employment, and that the Company will not incur any liability of
any kind to Optionee as a result of any change or amendment, or any
cancellation, of the Plan at any time.

 

(c)                                  The Grantee’s
employment with the Company and its Subsidiaries is not affected at all by any
Award and is agreed by the Grantee not to create an entitlement.  Accordingly, the terms of the Grantee’s
employment with the Company and its Subsidiaries will be determined from time
to time by the Company or the Subsidiary employing the Grantee (as the case may
be), and the Company or the Subsidiary will have the right, which is hereby
expressly reserved, to terminate or change the terms of the employment of the
Grantee at any time for any reason whatsoever, with or without good cause or
notice, except as may be expressly prohibited by the laws of the jurisdiction
in which the Grantee is employed.

 

(d)                                 By entering into this
Agreement, and as a condition of the grant of the Option, Optionee consents to
the collection, use, and transfer of personal data as described in this subsection to
the full extent permitted by and in full compliance with Applicable Law.

 

2

 

(i)                                     Optionee
understands that the Company and its Subsidiaries hold certain personal
information about the Optionee, including, but not limited to, name, home
address and telephone number, date of birth, social insurance number, salary,
nationality, job title, any Shares or directorships held in the Company,
details of all Options or other entitlement to Shares awarded, canceled,
exercised, vested, unvested, or outstanding in Optionee’s favor, for the
purpose of managing and administering the Plan (“Data”).

 

(ii)                                  Optionee
further understands that the Company and/or its Subsidiaries will transfer Data
among themselves as necessary for the purposes of implementation,
administration, and management of Optionee’s participation in the Plan, and
that the Company and/or its Subsidiary may each further transfer Data to any
third parties assisting the Company in the implementation, administration, and
management of the Plan (“Data Recipients”).

 

(iii)                               Optionee
understands that these Data Recipients may be located in Optionee’s country of
residence or elsewhere, such as the United States.  Optionee authorizes the Data Recipients to
receive, possess, use, retain, and transfer Data in electronic or other form,
for the purposes of implementing, administering, and managing Optionee’s
participation in the Plan, including any transfer of such Data, as may be
required for Plan administration and/or the subsequent holding of Shares on
Optionee’s behalf, to a broker or third party with whom the Shares acquired on
exercise may be deposited.

 

(iv)                              Optionee
understands that Optionee may, at any time, review the Data, request that any
necessary amendments be made to it, or withdraw Optionee’s consent herein in
writing by contacting the Company. 
Optionee further understands that withdrawing consent may affect
Optionee’s ability to participate in the Plan.

 

(e)  Choice of Language.

 

(i)                                     For Employees of
Canadian Locations:  The undersigned
agrees that it is his or her express wish that this form and all documents
relating to his participation in the scheme be drawn in the English language
only.  Le soussigné convient que sa volonté expresse est que ce formulaire ainsi
que tous les documents se rapportant à sa participation au régime soient
rédigés en langue anglaise seulement.

 

(ii)                                  For Employees
of Locations Other than Canada:  Optionee
has received this Agreement and any other related communications and consents
to having received these documents solely in English.

 

9.                                       Binding
Agreement.  Subject to the limitation
on the transferability of this grant contained herein, this Agreement will be
binding upon and inure to the benefit of the heirs, legatees, legal
representatives, successors and assigns of the parties hereto.

 

10.                                 Additional
Conditions to Issuance of Stock.  If
at any time the Company will determine, in its discretion, that the listing,
registration or qualification of the Shares upon any securities exchange or
under any state or federal law, or the consent or approval of any governmental
regulatory authority is necessary or desirable as a condition to the issuance
of Shares to the Optionee (or his or her estate), such issuance will not occur
unless and until such listing, registration, qualification, consent or approval
will have been effected or obtained free of any conditions not acceptable to
the Company.  The Company will make all
reasonable efforts to meet the requirements of any such state or federal law or
securities exchange and to obtain any such consent or approval of any such
governmental authority.

 

11.                                 Administrator
Authority.  The Administrator has the
power to interpret the Plan, the Grant Notice and this Agreement and to adopt
such rules for the administration, interpretation and application thereof as
are consistent therewith and to interpret or revoke any such rules (including,
but not limited to, the determination of

 

3

 

whether or not any Options have
vested).  All actions taken and all
interpretations and determinations made by the Administrator in good faith will
be final and binding upon Optionee, the Company and all other interested persons.  No member of the Administrator will be
personally liable for any action, determination or interpretation made in good
faith with respect to the Plan, the Grant Notice or this Agreement.

 

12.                                 Notice
Requirement.  Where there is a legal
requirement for any notice or document to be sent to any person by any other
person, it shall be considered sent if an electronic transmission of the
relevant information is sent in a form previously determined as being
acceptable to the Administrator.  For the
avoidance of doubt, the Administrator may dispense with the requirement to
tender a certificate on the issuance of Shares under an Option where the
Administrator authorizes any system permitting electronic notification.

 

13.                                 Address
for Notices.  Any notice to be given
to the Company under the terms of this Agreement will be addressed to the
Company at 2355 West Chandler Boulevard, Chandler AZ 85224, Attn: Stock
Administration, or at such other address as the Company may hereafter designate
in writing or electronically.

 

14.                                 Entire
Agreement; Governing Law.  The Plan
and Grant Notice are incorporated herein by reference.  The Plan, Grant Notice and this 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.  The Company will administer the Plan from the
United States of America.  The internal
laws of the State of Arizona, United States of America, but not its choice of
laws principles, will govern this Agreement, the Grant Notice, and all Options
granted under the Plan.

 

By your signature, you agree that this Option is granted under and
governed by the terms and conditions of the Plan, the Grant Notice and this
Option Agreement.  Optionee has reviewed
the Plan, the Grant Notice and this Agreement in their entirety, has had an
opportunity to obtain the advice of counsel prior to executing this Agreement
and fully understands all provisions of the Plan, the Grant Notice and
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 Agreement.  Optionee further agrees to notify the Company
upon any change in the residence address indicated below.

 

	
  OPTIONEE

  	
  MICROCHIP TECHNOLOGY INCORPORATED

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Signature

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Print Name

  	
   

  	
  Title

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Date

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

4

 

EXHIBIT A-1

 

MICROCHIP
TECHNOLOGY INCORPORATED

 

2004 EQUITY
INCENTIVE PLAN

 

EXERCISE
NOTICE

 

Microchip Technology Incorporated

Human Resources, Stock Administration

 

Exercise of Option.  Effective as of today,                                       ,
20      (date you sign this Exercise Notice),
the undersigned (“Purchaser”) hereby elects to purchase                              
number of shares (the “Shares”) of the Common Stock of Microchip Technology
Incorporated (the “Company”) under and pursuant to the 2004 Equity Incentive
Plan (the “Plan”), the Grant Notice (Grant No.                     ),
and associated Stock Option Agreement (the “Agreement”).  Subject to adjustment in accordance with Section 19
of the Plan, the purchase price for the Shares shall be $                    ,
as required by the Agreement.

 

Delivery of Payment.  Purchaser herewith delivers to the Company
the full purchase price for the Shares in accordance with Section 3 of the
Agreement.

 

Representations of Purchaser.  Purchaser acknowledges that Purchaser has
received, read and understood the Plan, the Grant Notice and the 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 where the
record date precedes the date of issuance, except as provided in Section 19
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 had the opportunity to consult 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, Grant Notice, and Agreement are
incorporated herein by reference and in conjunction with this Exercise Notice
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.  This agreement is governed by
the internal substantive laws, but not the choice of law rules, of the state of
Arizona, U.S.A.

 

 

	
  Submitted by:

  	
   

  	
  Accepted by:

  
	
   

  	
   

  	
   

  
	
  PURCHASER

  	
   

  	
  MICROCHIP TECHNOLOGY INCORPORATED

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Signature

  	
   

  	
  By

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Print Name

  	
   

  	
  Its

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Date

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Date Received (by Stock Administrator)Exhibit 10.5

 

MICROCHIP TECHNOLOGY INCORPORATED

 

2004 EQUITY INCENTIVE PLAN

 

NOTICE OF GRANT OF RESTRICTED STOCK UNITS

 

Unless otherwise defined
herein, the terms used in this Notice of Grant of Restricted Stock Units (“Grant
Notice”) shall have the same meanings as those defined in the 2004 Equity
Incentive Plan (the “Plan”).

 

	
  Grantee:

  	
   

  	
   

  	
   

  

 

You have been granted an
Award of Restricted Stock Units (“RSU/s”) subject to and in accordance with the
express terms and conditions of the Plan and the Restricted Stock Unit
Agreement attached hereto as Exhibit A (“Agreement”).  Each such RSU is equivalent to the right to
receive one share of Common Stock of the Company (“Share”) for purposes of
determining the number of Shares subject to this Award.  No Shares will be issued until the vesting
conditions of the Award described below are satisfied and the restrictions
lapse.  This Award does not entitle
Grantee to any stockholder rights with respect to the underlying Shares until the
vesting conditions of the Award described below are satisfied and the
restrictions lapse.  Additional terms of
this Award are as follows:

 

	
  Grant
  Number:

  	
   

  
	
   

  	
   

  
	
  Grant
  Date:

  	
   

  
	
   

  	
   

  
	
  Date
  Vesting Begins:

  	
   

  
	
   

  	
   

  
	
  Vesting
  Period:

  	
   

  
	
   

  	
   

  
	
  Purchase
  Price Per RSU:

  	
   

  
	
   

  	
   

  
	
  Total
  Number of RSUs Granted:

  	
   

  

 

Vesting Schedule.  The RSUs vest and all restrictions lapse in a
lump sum upon the Grantee’s completion of twelve months continuous service as a
Service Provider measured from the Grant Date.

 

Termination
Period.  This Award
automatically terminates and Grantee’s rights are forfeited with respect to any
portion of the RSUs unvested on the date Grantee ceases to be a Service
Provider.  In no event shall this Award
vest later than the Vesting Period above.

 

Choice of
Languages For Employees of Canadian Locations Only.  The undersigned agrees that it is his or her
express wish that this form and all documents relating to his participation in
the scheme be drawn in the English language only.  Le
soussigné convient que sa volonté expresse est que ce formulaire ainsi que tous
les documents se rapportant à sa participation au régime soient rédigés en
langue anglaise seulement.

 

Binding
Agreements.  By
signature of Grantee and Company’s representative below, the parties agree that
this Grant Notice, the Agreement, and the Plan constitute Grantee’s entire
agreement with respect to this Award and agree to be bound by the terms
therein.  Grantee hereby agrees to accept
as binding, conclusive and final all decisions or interpretations of the
Administrator upon any questions relating to the Plan, the Agreement, and/or
this Award.  This Award may be modified
by the Company, but in accordance with Section 21(c) of the Plan, it may
not be modified adversely to Grantee’s interest except by means of a writing
signed by the Company and Grantee.  The
Company will administer the Plan from the United States of America. The
internal laws of the State of Arizona, United States of America, but not its
choice of law principles, will govern this Award.

 

	
  GRANTEE

  	
  MICROCHIP
  TECHNOLOGY INCORPORATED

  
	
   

  	
   

  
	
   

  	
   

  
	
  Signature:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
  Address:

  	
   

  	
   

  	
  Steve Sanghi, President and CEO

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Dated:

  	
   

  	
   

  
									

 

 

EXHIBIT A

 

MICROCHIP TECHNOLOGY INCORPORATED

 

2004 EQUITY INCENTIVE PLAN

 

RESTRICTED STOCK UNITS AGREEMENT

 

1.                                       Grant
of Restricted Stock Units.  The
Company hereby grants to the Grantee named in the Notice of Grant of Restricted
Stock Units (“Grant Notice”) an Award of Restricted Stock Units (“RSU/s”), as
set forth in the Grant Notice and subject to the terms and conditions in this
Restricted Stock Unit Agreement (“Agreement”) and the Company’s 2004 Equity
Incentive Plan (the “Plan”).  Unless
otherwise defined herein, the terms defined in the Plan shall have the same
defined meanings in this Agreement.

 

2.                                       Company’s
Obligation.  Each RSU represents the
right to receive a Share in accordance with the Vesting Period in the Grant
Notice.  Unless and until the RSUs vest,
the Grantee will have no right to receive Shares underlying such RSUs.  Prior to actual distribution of Shares
pursuant to any vested RSUs, such RSUs will represent an unsecured obligation
of the Company, payable (if at all) only from the general assets of the
Company.

 

3.                                       Vesting
Schedule.  Subject to paragraph 4 of
this Agreement, the RSUs awarded by this Agreement will vest and all
restrictions lapse according to the vesting schedule specified in the
Grant Notice.

 

4.                                       Forfeiture
upon Termination as a Service Provider. 
Notwithstanding any contrary provision of this Agreement or the Grant
Notice, if the Grantee terminates service as an Service Provider for any or no
reason prior to vesting, the unvested RSUs awarded by this Agreement will
thereupon be forfeited at no cost to the Company.

 

5.                                       Payment
after Vesting.  Any RSUs that vest in
accordance with paragraph 3 of this Agreement will be paid to the Grantee (or
in the event of the Grantee’s death, to his or her estate) in Shares, provided
that to the extent determined appropriate by the Company, any federal, state
and local withholding taxes with respect to such RSUs will be paid by the
Grantee in the manner allowed by the Company.

 

6.                                       Payments
after Death.  Any distribution or
delivery to be made to the Grantee under this Agreement will, if the Grantee is
then deceased, be made to the administrator or executor of the Grantee’s
estate.  Any such administrator or
executor must furnish the Company with (a) written notice of his or her status
as transferee, and (b) evidence satisfactory to the Company to establish the
validity of the transfer and compliance with any laws or regulations pertaining
to said transfer.

 

7.                                       Grant
is Not Transferable.  Except to the
limited extent provided in paragraph 6 of this Agreement, this grant and
the rights and privileges conferred hereby will not be transferred, assigned,
pledged or hypothecated in any way (whether by operation of law or otherwise)
and will not be subject to sale under execution, attachment or similar
process.  Upon any attempt to transfer,
assign, pledge, 

 

1

 

hypothecate or otherwise dispose of this grant, or any
right or privilege conferred hereby, or upon any attempted sale under any
execution, attachment or similar process, this grant and the rights and
privileges conferred hereby immediately will become null and void.

 

8.                                       Rights
as Stockholder.  Neither the Grantee
nor any person claiming under or through the Grantee will have any of the
rights or privileges of a stockholder of the Company in respect of any Shares
deliverable hereunder unless and until certificates representing such Shares
will have been issued, recorded on the records of the Company or its transfer
agents or registrars, and delivered to the Grantee or Grantee’s broker or had
the Shares electronically transferred to Grantee’s account.

 

9.                                       Tax
Obligations.  Grantee agrees to make
appropriate arrangements with the Company (or the Parent or Subsidiary
employing or retaining Grantee) in accordance with the procedures offered by
the Company for the satisfaction of all Federal, state, local and foreign
income and employment tax withholding requirements applicable to the issuance
of Shares pursuant to an RSU Award.  The
Administrator may in its sole discretion determine whether the minimum required
withholding taxes with respect to such RSUs will be paid by selling a portion
of vested shares or by direct payment from the Grantee to the Company, by some
other method, or by some combination thereof.

 

The Grantee grants to the
Company the irrevocable authority, as agent of Grantee and on his behalf, to
sell or procure the sale of sufficient Shares subject to this Award so that the
net proceeds receivable by the Company are as far as possible equal to but not
less than the amount of any tax the Grantee is liable for and the Company shall
account to Grantee for any balance.

 

Grantee acknowledges and agrees that the Company may
refuse to deliver Shares if Grantee has not made appropriate arrangements with
the Company to satisfy the minimum tax withholding requirements.

 

10.                                 Acknowledgments.  The Grantee expressly acknowledges the
following:

 

(a)          The
Company (whether or not Grantee’s employer) is granting the Award.  That the grant of the Award, future grants of
Awards, and benefits and rights provided under the Plan are at the complete
discretion of the Company and do not constitute regular or periodic payments.  No grant of Awards will be deemed to create
any obligation to grant any further Awards, whether or not such a reservation
is explicitly stated at the time of such a grant.  The benefits and rights provided under the
Plan are not to be considered part of Grantee’s salary or compensation for
purposes of calculating any severance, resignation, redundancy or other end of
service payments, vacation, bonuses, long-term service awards, indemnification,
pension or retirement benefits, or any other payments, benefits or rights of
any kind.  Grantee waives any and all
rights to compensation or damages as a result of the termination of employment
with the Company or its subsidiaries for any reason whatsoever insofar as those
rights result or may result from:

 

(i)                                     the
loss or diminution in value of such rights under the Plan, or

 

(ii)                                  Grantee
ceasing to have any rights under, or ceasing to be entitled to any rights under
the Plan as a result of such termination.

 

(b)         The Company has the
right, at any time to amend, suspend or terminate the Plan.  The Plan will not be deemed to constitute,
and will not be construed by Grantee to constitute, part of the terms and
conditions of employment, and that the Company will not incur any liability of
any kind to Grantee as a result of any change or amendment, or any
cancellation, of the Plan at any time.

 

2

 

(c)          The
Grantee’s employment with the Company and its Subsidiaries is not affected at
all by any Award and it is agreed by the Grantee not to create an
entitlement.  Accordingly, the terms of
the Grantee’s employment with the Company and its Subsidiaries will be
determined from time to time by the Company or the Subsidiary employing the
Grantee (as the case may be), and the Company or the Subsidiary will have the
right, which is hereby expressly reserved, to terminate or change the terms of
the employment of the Grantee at any time for any reason whatsoever, with or
without good cause or notice, except as may be expressly prohibited by the laws
of the jurisdiction in which the Grantee is employed.

 

(d)         By
entering into this Agreement, and as a condition of the grant of the Award,
Grantee consents to the collection, use, and transfer of personal data as
described in this subsection to the full extent permitted by and in full
compliance with Applicable Law.

 

(i)                                     Grantee
understands that the Company and its Subsidiaries hold certain personal
information about the Grantee, including, but not limited to, name, home
address and telephone number, date of birth, social insurance number, salary,
nationality, job title, any Shares or directorships held in the Company,
details of all Awards or other entitlement to Shares awarded, canceled,
exercised, vested, unvested, or outstanding in Grantee’s favor, for the purpose
of managing and administering the Plan (“Data”).

 

(ii)                                  Grantee
further understands that the Company and/or its Subsidiaries will transfer Data
among themselves as necessary for the purposes of implementation,
administration, and management of Grantee’s participation in the Plan, and that
the Company and/or its Subsidiary may each further transfer Data to any third
parties assisting the Company in the implementation, administration, and
management of the Plan (“Data Recipients”).

 

(iii)                               Grantee understands that
these Data Recipients may be located in Grantee’s country of residence or
elsewhere, such as the United States. 
Grantee authorizes the Data Recipients to receive, possess, use, retain,
and transfer Data in electronic or other form, for the purposes of
implementing, administering, and managing Grantee’s participation in the Plan,
including any transfer of such Data, as may be required for Plan administration
and/or the subsequent holding of Shares on Grantee’s behalf, to a broker or
third party with whom the Shares acquired on exercise may be deposited.

 

(iv)                              Grantee
understands that Grantee may, at any time, review the Data, request that any
necessary amendments be made to it, or withdraw Grantee’s consent herein in
writing by contacting the Company. 
Grantee further understands that withdrawing consent may affect Grantee’s
ability to participate in the Plan.

 

(e)          Choice
of Language.

 

(i)                                     For
Employees of Canadian Locations:  The
undersigned agrees that it is his or her express wish that this form and all
documents relating to his participation in the scheme be drawn in the English
language only.  Le soussigné convient que sa volonté expresse est
que ce formulaire ainsi que tous les documents se rapportant à sa participation
au régime soient rédigés en langue anglaise seulement.

 

(ii)                                  For
Employees of Locations Other than Canada: 
Grantee has received this Agreement and any other related communications
and consents to having received these documents solely in English.

 

11.                                 Binding
Agreement.  Subject to the limitation
on the transferability of this grant contained herein, this Agreement will be
binding upon and inure to the benefit of the heirs, legatees, legal
representatives, successors and assigns of the parties hereto.

 

3

 

12.                                 Additional
Conditions to Issuance of Stock.  If
at any time the Company will determine, in its discretion, that the listing,
registration or qualification of the Shares upon any securities exchange or
under any state or federal law, or the consent or approval of any governmental
regulatory authority is necessary or desirable as a condition to the issuance
of Shares to the Grantee (or his or her estate), such issuance will not occur
unless and until such listing, registration, qualification, consent or approval
will have been effected or obtained free of any conditions not acceptable to
the Company.  The Company will make all
reasonable efforts to meet the requirements of any such state or federal law or
securities exchange and to obtain any such consent or approval of any such
governmental authority.

 

13.                                 Administrator
Authority.  The Administrator has the
power to interpret the Plan, the Grant Notice and this Agreement and to adopt
such rules for the administration, interpretation and application thereof as
are consistent therewith and to interpret or revoke any such rules (including,
but not limited to, the determination of whether or not any RSUs have
vested).  All actions taken and all
interpretations and determinations made by the Administrator in good faith will
be final and binding upon Grantee, the Company and all other interested
persons.  No member of the Administrator
will be personally liable for any action, determination or interpretation made
in good faith with respect to the Plan, the Grant Notice or this Agreement.

 

14.                                 Notice
Requirement.  Where there is a legal
requirement for any notice or document to be sent to any person by any other
person, it shall be considered sent if an electronic transmission of the
relevant information is sent in a form previously determined as being
acceptable to the Administrator.  For the
avoidance of doubt, the Administrator may dispense with the requirement to
tender a certificate on the issuance of Shares under an RSU Award where the
Administrator authorizes any system permitting electronic notification.

 

15.                                 Address
for Notices.  Any notice to be given
to the Company under the terms of this Agreement will be addressed to the
Company at 2355 West Chandler Boulevard, Chandler AZ 85224, Attn: Stock
Administration, or at such other address as the Company may hereafter designate
in writing or electronically.

 

16.                                 Entire
Agreement; Governing Law.  The Plan
and Grant Notice are incorporated herein by reference.  The Plan, Grant Notice and this 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 Grantee with respect to the subject matter
hereof, and may not be modified adversely to the Grantee’s interest except by
means of a writing signed by the Company and Grantee.  The Company will administer the Plan from the
United States of America.  This
Agreement, the Grant Notice and all Awards are governed by the internal
substantive laws, but not the choice of law principles, of the State of
Arizona, United States of America.

 

4

 

By Grantee’s signature,
Grantee agrees that this Award is granted under and governed by the terms and
conditions of the Plan, the Grant Notice and this Agreement.  Grantee has reviewed the Plan, the Grant
Notice and this Agreement in their entirety, has had an opportunity to obtain
the advice of counsel prior to executing this Agreement and fully understands
all provisions of the Plan, the Grant Notice and this Agreement.  Grantee hereby agrees to accept as binding,
conclusive and final all decisions or interpretations of the Administrator upon
any questions relating to the Plan, the Grant Notice and this Agreement.

 

 

	
  GRANTEE

  	
  MICROCHIP
  TECHNOLOGY INCORPORATED

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  	
   

  
	
  Signature

  	
   

  	
  Steve Sanghi, President and CEO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Print Name

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date

  	
   

  	
   

  

 

5

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