Document:

Exhibit 10.14

 

MONOLITHIC
SYSTEM TECHNOLOGY, INC.

CHANGE-IN-CONTROL
AGREEMENT

 

THIS
CHANGE-IN-CONTROL AGREEMENT (this “Agreement”), made
and entered into as of July 21, 2005, by and between Monolithic System
Technology, Inc., a Delaware corporation (“MoSys”), and Chester Silvestri
(the “Officer”).

 

WHEREAS,
MoSys considers it essential to its best interests to foster the continued
employment of key management personnel and recognizes the distraction and
disruption that the possibility of a Change-in-Control (as defined in Section 1(d) below)
may raise to the detriment of MoSys and its stockholders; and

 

WHEREAS,
MoSys has determined to take appropriate steps to reinforce and encourage the
continued attention and dedication of key management personnel to their
assigned duties in the face of a possible Change-in-Control; 

 

NOW,
THEREFORE, in consideration of the premises and the mutual
covenants contained herein, MoSys and the Officer hereby agree as follows:

 

1.                                      DEFINITIONS

 

(a)                                  “Base Salary” shall mean the annual salary of the
Officer at the time of termination of his employment within the application of
this Agreement.

 

(b)                                  “Beneficiary” shall mean (i) the person or
persons named by the Officer, by notice to MoSys, to receive any compensation
or benefit payable under this Agreement or (ii) in the event of his death,
if no such person is named and survives the Officer, his estate. 

 

(c)                                  “Board” shall mean the Board of Directors of
MoSys.

 

(d)                                  “Change-in-Control” means the occurrence of any of the
following:

 

(i)  an acquisition
after the Effective Date by an individual, an entity or a group in one or more
related transactions (excluding MoSys or an employee benefit plan of MoSys or a
corporation controlled by MoSys’s stockholders) of 45 percent or more of MoSys’s
common stock or voting securities; or

 

(ii)  consummation
of a complete liquidation or dissolution of MoSys or a merger, consolidation,
reorganization or sale of all or substantially all of MoSys’s assets
(collectively, a “Business Combination”) other than a Business Combination in
which (A) the stockholders of MoSys receive 50 percent or more of the
stock of the corporation resulting from the Business Combination and (B) at
least a majority of the board of directors of such resulting corporation were
incumbent directors of MoSys immediately prior to the consummation of the
Business Combination, and (C) after which no individual, entity or group
(excluding any corporation or other entity resulting from the Business
Combination or any employee benefit plan of such corporation or of MoSys) who
did not own 45 percent or more of the stock of the resulting corporation or
other entity immediately before the Business Combination owns 45 percent or
more of the stock of such resulting corporation or other entity.

 

(e)                                  “Good Reason” means, without the Officer’s prior
written consent or acquiescence:

 

(i)  assignment to
the Officer of duties incompatible with the Officer’s position, failure to
maintain the Officer in this position and its reporting relationship or a substantial
diminution in the nature of the Officer’s authority or responsibilities;

 

(ii)  reduction in
the Officer’s then current Base Salary or in the bonus or incentive
compensation opportunities or benefits coverage available during the term of
this Agreement, except pursuant to an across-the-board

 

 

reduction
similarly affecting all senior executives of MoSys;

 

(iii)  termination
of the Officer’s employment, for any reason other than death, disability,
voluntary termination or Misconduct (as defined below);

 

(iv)  relocation of
the Officer’s principal place of business to a location more than 30 miles from
the location of such office on the date of this Agreement; 

 

(v)  MoSys’s failure
to pay the Officer any material amounts otherwise vested and due the Officer
hereunder or under any plan, program or policy of MoSys; or

 

(vi)  failure of a
successor to MoSys following a Change-in-Control to expressly assume or affirm
MoSys’s obligations under this Agreement as specified in Section 6.

 

(f)                                    “Misconduct” means the commission of any act of
fraud, embezzlement or dishonesty or other violation of MoSys’s Code of
Business Conduct and Ethics for Employees, Executive Officers and Directors by
the Officer, any unauthorized use or disclosure by the Officer of confidential
information or trade secrets of MoSys or other breach by the Officer of a
material agreement between the Company and the Officer, or any other
intentional misconduct by the Officer adversely affecting the business affairs
of MoSys in a material manner.

 

(g)                                 “MoSys” when used herein shall be deemed to
refer to MoSys and any entity or entities that succeed to the assets and
properties of MoSys following a Change-in-Control, or any other corporation or
other entity which is a subsidiary or parent of such successor entity or
entities for whom the Officer is employed at any time within two years
following the Change-in-Control.

 

2.                                      TERM OF AGREEMENT

 

This Agreement shall be
effective immediately upon its execution by MoSys and the Officer (the “Effective
Date”) and shall remain in effect until the earliest to occur of:  (a) termination of the Officer’s
employment with MoSys following a Change-in-Control (i) by reason of death
or disability, (ii) by the Officer other than for Good Reason, or (iii) by
MoSys for Misconduct, or (b) two years after the date of a
Change-in-Control.

 

3.                                      CHANGE IN CONTROL BENEFITS

 

In the event of termination of the Officer’s
employment by the Officer for Good Reason within two years following a
Change-in-Control, the Officer will be entitled to the following:

 

(a)                                  Salary and Benefits:

 

(i)  his Base Salary
through the date of termination; 

 

(ii)  payment in
lieu of any unused vacation, in accordance with MoSys’s vacation policy and
applicable laws;   

 

(iii)  any annual or
discretionary bonus earned but not yet paid to the Officer for any calendar
year prior to the year in which his termination occurs; 

 

(iv)  any
compensation under any deferred compensation plan of MoSys or deferred
compensation agreement with MoSys then in effect; 

 

(v)  any other
compensation or benefits, including without limitation any benefits under
long-term incentive compensation plans, any benefits under equity grants and
awards and employee benefits under plans that have vested through the date of
termination or to which the Officer may then be entitled in accordance with the

 

 

applicable
terms of each grant, award or plan; and 

 

(vi)  reimbursement
of any business expenses incurred by the Officer through the date of
termination but not yet paid to the Officer. 

 

(b)                                  Stock Option
Acceleration:  Immediate and unconditional vesting of 50
percent of the then unvested stock options and stock awards previously granted
to the Officer and, for the one-year period following termination, the right to
exercise any stock options or other awards held by him.

 

(c)                                  Release. 
MoSys will require, as a condition of receiving the Change-in-Control
payments under subsection (b) above, that the Officer execute a
general release substantially in the form attached as Exhibit A, which
upon execution shall be deemed incorporated herein by reference as a material
part of this Agreement. 

 

4.                                      NO MITIGATION 

 

MoSys agrees that if the Officer’s employment
with MoSys terminates, the Officer will not be obligated to seek other
employment or to attempt to reduce any amount payable to the Officer under this
Agreement. Further, no amount of any payment under this Agreement shall be
reduced by any compensation earned by the Officer as the result of employment
by a subsequent employer or otherwise.

 

5.                                      NOTICES 

 

Any notice or other communication required or
permitted under this Agreement shall be in writing and shall be deemed to have
been duly given when delivered by hand, electronic transmission (with a copy
following by hand, mail or overnight courier), by registered or certified mail,
postage prepaid, return receipt requested or by overnight courier addressed to
the other party. All notices shall be addressed as follows, or to such other
address or addresses as may be substituted by notice in writing:

 

	
  To Monolithic System Technology, Inc.:

  	
   

  	
  To the Officer:

  
	
   

  	
   

  	
   

  
	
  755 N Matilda Drive

  	
   

  	
  Chester Silvestri

  
	
  Suite 100

  	
   

  	
  [ADDRESS]

  
	
  Sunnyvale, CA 94085

  	
   

  	
   

  
	
  Attention: Chairman, Compensation

  Committee of the Board of Directors

  	
   

  	
  Fax:

  
	
  Fax: (408) 731-1893

  	
   

  	
   

  

 

6.                                      SUCCESSORS

 

(a)                                  MoSys’s Successors. 
Any successor to MoSys (whether direct or indirect and whether by
purchase, lease, merger, consolidation, liquidation or otherwise) or to all or
substantially all of MoSys’s business and/or assets shall assume MoSys’s
obligations under this Agreement in the same manner and to the same extent as
MoSys would be required to perform such obligations in the absence of a
succession.

 

(b)                                  Officer’s Successors. 
Without the written consent of MoSys, the Officer can not assign or
transfer this Agreement or any right or obligation under this Agreement to any
other person or entity.  Notwithstanding
the foregoing, the terms of this Agreement and all rights of the Officer under
this Agreement shall inure to the benefit of, and be enforceable by, the
Officer’s personal or legal representatives, executors, administrators,
successors, heirs, distributes, devisees and legatees.

 

7.                                      GENERAL PROVISIONS

 

(a)                                  Amendments. 
No provision of this Agreement may be amended, modified or waived unless
such amendment, modification or waiver shall be agreed to in writing and signed
by the Officer and by a member of the

 

 

Compensation
Committee of the Board.

 

(b)                                  Severability. 
If any provision of this Agreement shall be determined to be invalid or
unenforceable by a court of competent jurisdiction, the remaining provisions of
this Agreement shall be unaffected thereby and shall remain in full force and
effect to the fullest extent permitted by law. 
If any provision of this Agreement is held by a court of competent
jurisdiction to be invalid, void or unenforceable, the remaining provisions
shall nevertheless continue in full force without being impaired or invalidated
in any way.

 

(c)                                  Governing Law. 
This Agreement shall be construed, interpreted and governed in
accordance with the laws of the state of California without regard to its
conflicts of laws rules.

 

(d)                                  Inconsistencies. 
The terms of this Agreement supersede any inconsistent prior promises,
policies, representations, understandings, arrangements or agreements between
the parties, whether by employment contract or otherwise.

 

(e)                                  Survival. 
Notwithstanding the termination of the term of this Agreement, the
duties and obligations of MoSys, if any, following the termination of the
Officer’s employment following a Change-in-Control shall survive indefinitely.

 

(f)                                    Withholding. 
MoSys may deduct and withhold from any payments hereunder the amount
that MoSys, in its reasonable judgment, is required to deduct and withhold for
any federal, state or local income or employment taxes.

 

(g)                                 No Other Compensation;
Employee at Will.  Except as provided in Section 3 above,
no amount or benefit shall be payable to the Officer under this Agreement in
respect of termination of the Officer’s employment within two years following a
Change-in-Control.  This Agreement shall
not be construed as creating an express or implied contract of employment and,
except as otherwise agreed in writing between the Officer and MoSys, the
Officer is and shall remain an “employee at will” and shall not have any right
to be retained in the employ of MoSys.

 

(h)                                 Counterparts. 
This Agreement may be executed in counterparts. 

 

IN WITNESS WHEREOF, the parties have executed
this Agreement as of the day and year first above written.

 

	
   

  	
  MONOLITHIC SYSTEM TECHNOLOGY, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CHESTER
  SILVESTRI

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  (Signature)

  	
   

  
					

 

 

EXHIBIT A

RELEASE
AGREEMENT

 

In consideration of the
benefits I will receive under Monolithic System Technology, Inc.’s
Change-in-Control Agreement, I hereby release, acquit and forever discharge
Monolithic System Technology, Inc. (the “Company”), its parents,
subsidiaries, predecessors, successors and affiliates, and each of their
respective officers, directors, agents, servants, employees, attorneys
shareholders, and assigns (the “Released Parties”), of and from any and all
claims, liabilities, demands, causes of action, costs, expenses, attorneys’
fees, damages, indemnities and obligations of every kind and nature, in law,
equity, or otherwise, known and unknown, suspected and unsuspected, disclosed
and undisclosed, arising out of or in any way related to agreements, events,
acts or conduct at any time prior to and including the date I sign this Release
Agreement. This release of claims includes, but is not limited to: 

 

•    any and all claims and demands
directly or indirectly arising out of or in any way connected with my
employment with the Company or the termination of that employment, including,
but not limited to, claims, demands or agreements related to salary, bonuses,
commissions, vacation pay, personal time off, fringe benefits, expense
reimbursements, sabbatical benefits, severance benefits, stock, stock options,
any other ownership or equity interest in the Company, or any other form of
compensation or benefit;

 

•    claims
pursuant to any federal, state or local law, statute, common law or cause of
action including, but not limited to, Title VII of the federal Civil
Rights Act of 1964, as amended, or any other statute, agreement or source of
law, the federal Age Discrimination in Employment Act of 1967, as amended (“ADEA”),
the federal Americans with Disabilities Act of 1990, the Family and Medical
Leave Act, the Employee Retirement Income Security Act, the Equal Pay Act, the
Worker Adjustment and Retraining Notification Act, the California Fair
Employment and Housing Act, as amended, and the California Labor Code;

 

•    all
tort law claims, including claims for fraud, misrepresentation, defamation,
libel, emotional distress and breach of the implied covenant of good faith and
fair dealing; and

 

•    all
claims arising under contract law, or the law of wrongful discharge,
discrimination or harassment.

 

I represent that I have
no lawsuits, claims or actions pending in my name, or on behalf of any other
person or entity, against any of the Released Parties. I agree that in the
event I bring a claim covered by this release in which I seek damages against
the Company or in the event I seek to recover against the Company in any claims
brought by a governmental agency on my behalf, this Agreement shall serve as a
complete defense to such claims.

 

ADEA Waiver and Release:  I acknowledge that I am knowingly and
voluntarily waiving and releasing any rights I may have under ADEA. I also
acknowledge that the consideration given for the waiver and release herein is
in addition to anything of value to which I was already entitled. I further
acknowledge that I have been advised by this writing, as required by the ADEA,
that: (a) my waiver and release do not apply to any rights or claims that
may arise after the execution date of this Agreement; (b) I have been
advised hereby that I have the right to consult with an attorney prior to
executing this Agreement; (c) I have 21 days from the date I receive this
Agreement to consider this Agreement (although I voluntarily may choose to
execute this Agreement earlier); (d) I have seven days following the
execution of this Agreement to revoke the Agreement; and (e) this
Agreement shall not be effective until the later of (i) the date upon
which the revocation period has expired, which shall be the eighth day after I
execute this Agreement, or (ii) the date I return this Agreement, fully
executed, to the Company. 

 

I acknowledge that for
this Release Agreement to be effective, I must sign and return it to the
Company within 21 days after the date I receive it and I must not revoke it at
any time during the above-referenced seven-day revocation period. 

 

I acknowledge that I have
read and understand Section 1542 of the California Civil Code which reads
as follows: “A general release does not extend to claims which the creditor
does not know or suspect to exist in his favor at the time of executing the
release, which if known by him must have materially affected his settlement
with the debtor.” I hereby expressly waive and relinquish all rights and
benefits under that section and any law of any jurisdiction of similar
effect with respect to my release of any unknown or unsuspected claims I may
have against

 

 

any of the Released
Parties. 

 

I understand that this
Release Agreement, together with the Change-in-Control Agreement, constitutes
the complete, final and exclusive embodiment of the entire agreement between
the Company and me with regard to the subject matter hereof. I am not relying
on any promise or representation by the Company that is not expressly stated in
this Release Agreement.

 

	
   

  	
  CHESTER SILVESTRI

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Its:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Date:

  	
   

  	
   

  
	
   

  	
   

  
	
  ACCEPTED AND
  AGREED:

  	
   

  
	
   

  	
   

  
	
  MONOLITHIC
  SYSTEM TECHNOLOGY, INC.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Its:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Date:Exhibit 10.15

 

STOCK OPTION GRANT PURSUANT TO
THE AMENDED AND RESTATED

2000 STOCK OPTION AND EQUITY INCENTIVE PLAN

 

                                                ,
(the “Optionee”):

Monolithic System
Technology, Inc., a Delaware corporation (the “Company”), hereby grants to
Optionee, an option (“Option”) to purchase a total of                                     
(              )
shares of Common Stock (“Shares”) of the Company, at the price set forth
herein, and in all respects subject to the terms, definitions and provisions of
the Company’s Amended and Restated 2000 Stock Option and Equity Incentive Plan
(“Plan”).  The terms and provisions of
the Plan are incorporated herein by reference and all capitalized terms used
herein and not otherwise defined shall have the meanings ascribed thereto in
the Plan, and in the event of any conflict between the terms and provisions
herein and those of the Plan, the terms and provisions of the Plan, including,
without limitation, the powers of the Committee thereunder, shall prevail and
be controlling.

 

THE DETAILS OF
YOUR OPTION ARE AS FOLLOWS:

 

1.                                       Nature Of The
Option

 

The Option is
intended to be a [Nonstatutory Stock
Option/Incentive Stock Option].

 

2.                                       Option Price

 

The Option Price
is $                        
for each Share.

 

3.                                       Vesting And
Exercise Of Option

 

a.                                       During the Optionee’s Continuous Service
with the Company, the Option will vest and become exercisable during its term
in accordance with the following schedule:

 

	
  No. of Shares Vesting

  	
   

  	
  Vesting Period

  
	
   

  	
   

  	
   

  

 

[or]

 

[in accordance with the provisions of Section 9(a) of
the Plan];

 

provided
that if the Option is subject to Section 11(b) or 11(d) of the
Plan, it shall vest in accordance with the provisions of such applicable
subsection.

 

b.                                      In the event of the Optionee’s death,
disability or other termination of employment, the Option shall be exercisable [in the manner and to the extent provided in Section 9(d)-(f) of
the Plan] [or] as otherwise specified by resolution of the Board].

 

c.                                       No fraction of a Share shall be purchasable
or deliverable upon exercise, but in the event any adjustment of the number of
Shares covered by the Option shall cause such number to include a fraction of a
Share, such number of Shares shall be adjusted to the nearest smaller whole number
of Shares.

 

d.                                      In order to exercise any portion of this
Option which has vested, the Optionee shall notify the Company in writing of
the election to exercise the Option and the number of Shares in respect of
which the Option is being exercised, by executing and delivering the Notice of
Exercise of Stock Option in the form attached hereto as Appendix I.  The certificate or certificates representing
Shares as to which this Option has been exercised shall be registered in the
name of the Optionee.

 

 

4.                                       Non-Transferability
Of Option

 

[This
Option, if or to the extent it is an Incentive Stock Option, may be exercised
during the lifetime of the Optionee only by the Optionee.  As approved by the Committee and subject to Section 10
of the Plan, any vested Nonstatutory Stock Option may be transferred by the
Optionee through a gift or domestic relations order in settlement of marital
property rights to the donees or transferees described in Section 10 of
the Plan].  Otherwise,
this Option may only be transferred by will or by the law of descent and
distribution.  The terms of this Option
shall be binding upon the executors, administrators, heirs and successors of
the Optionee.

 

5.                                       Method Of
Payment

 

Payment of the
exercise price shall be by any of the following, or a combination thereof, at
the election of the Optionee:

 

a.                                       cash;

 

b.                                      check, cashier’s check, certified check or
wire transfer;

 

c.                                       in the event there exists a public market
for the Company’s Common Stock on the date of exercise, by delivery of a sell order
to a broker for the shares being purchased and an agreement to pay (or have the
broker remit payment for) the purchase price of the shares being purchased on
or before the settlement date for the sale of such shares to the broker; or

 

d.                                      in the event there exists a public market
for the Company’s Common Stock on the date of exercise, by surrender of shares
of the Company’s Common Stock, provided that if such shares were acquired upon
exercise of an incentive stock option, the Optionee must have first satisfied
the holding period requirements under Section 422(a)(1) of the
Internal Revenue Code of 1986, as amended (the “Code”).  In this case payment shall be made as
follows:

 

i.                                          The Optionee shall deliver to the Secretary
of the Company a written notice which shall set forth the portion of the
purchase price the Optionee wishes to pay with Common Stock, and the number of
shares of such Common Stock the Optionee intends to surrender pursuant to the
exercise of this Option, which shall be determined by dividing the
aforementioned portion of the purchase price by the closing price per share of
the Common Stock of the Company, as reported on the Nasdaq National Market (or
on any other national securities exchange or other established market on which
the Common Stock is then listed), on the last business day immediately
preceding the date of exercise of the Option, as determined by the Committee;

 

ii.                                       Fractional shares shall be disregarded and
the Optionee shall pay in cash an amount equal to such fraction multiplied by
the price determined under subparagraph i above;

 

iii.                                    The written notice shall be accompanied by
a duly endorsed blank stock power with respect to the number of Shares set
forth in the notice, and the certificate(s) representing said Shares shall be
delivered to the Company at its principal offices within three working days
from the date of the notice of exercise;

 

iv.                                   The Optionee hereby authorizes and directs
the Secretary of the Company to transfer so many of the Shares represented by
such certificate(s) as are necessary to pay the purchase price in accordance
with the provisions herein; and

 

v.                                      Notwithstanding any other provision herein,
the Optionee shall only be permitted to pay the purchase price with Shares of
the Company’s Common Stock owned by him as of the exercise date in the manner
and within the time periods allowed under 17 CFR Section 240.16b-3
promulgated under the Securities Exchange Act of 1934, as amended (“Exchange
Act”), as such regulation is presently constituted, as it is amended from time
to time, and as it is interpreted now or hereafter by the Securities and
Exchange Commission.

 

6.                                       Adjustments
Upon Changes In Capitalization

 

The number of
Shares covered by this Option shall be adjusted in accordance with the
provisions of Section 20 of the Plan in the event of changes in the
capitalization or organization of the Company, or if the Company is a party to

 

 

a merger or other
corporate reorganization.

 

7.                                       Term Of
Option

 

This Option may
not be exercised more than [ten]
years from the date of grant of this Option, as set forth below, and may be
exercised during such term only in accordance with the Plan and the terms of
this Option. [Note: Five years with respect
to an Incentive Stock Option grant to an Optionee that owns 10% or more of the
Common Stock.]

 

8.                                       Not
Employment Contract

 

Nothing in this
Agreement or in the Plan shall confer upon the Optionee any right to continue
in the employ or other service with the Company or any Parent or Subsidiary or
shall interfere with or restrict in any way the rights of the Company (or any
Parent or Subsidiary), which are hereby expressly reserved, to discharge the
Optionee at any time for any reason whatsoever, with or without cause, subject
to the provisions of applicable law. 
This is not an employment contract.

 

9.                                       Income Tax
Withholding

 

a.                                       The Optionee authorizes the Company to
withhold in accordance with applicable law from any compensation payable to him
or her any taxes required to be withheld by Federal, state or local laws as a result
of the exercise of this Option in accordance with Section 12 of the
Plan.  The Optionee agrees to notify the
Company immediately in the event of any disqualifying disposition (within the
meaning of Section 421(b) of the Code) of the shares acquired upon
exercise of an Incentive Stock Option. 
Furthermore, in the event of any determination that the Company has
failed to withhold a sum sufficient to pay all withholding taxes due in
connection with the exercise of this Option, or a disqualifying disposition of
the shares acquired upon exercise of an Incentive Stock Option, the Optionee
agrees to pay the Company the amount of such deficiency in cash within five (5) days
after receiving a written demand from the Company to do so, whether or not
Optionee is an employee of the Company at that time.

 

b.                                      At such time as the Optionee is required to
pay to the Company an amount with respect to tax withholding obligations as set
forth in Section 9(a), the Optionee may elect prior to the date the amount
of such withholding tax is determined to make such payment, or such increased
payment as the Optionee elects to make up to the maximum federal, state and
local marginal tax rates (including any related FICA obligation) applicable to
the Optionee and the particular transaction in accordance with the provisions
of Section 12 of the Plan.

 

c.                                       Any adverse consequences incurred by an
Optionee with respect to the use of shares of Common Stock to pay any part of
the Option Price or of any tax in connection with the exercise of an Option,
including, without limitation, any adverse tax consequences arising as a result
of a disqualifying disposition within the meaning of Section 422 of the
Code, shall be the sole responsibility of the Optionee.

 

10.                                 Conditions Upon Issuance of Shares.

 

Shares shall not
be issued with respect to the Option unless the exercise of the Option and the
issuance and delivery of such Shares pursuant thereto shall comply with all
relevant provisions of law, including, without limitation, the Securities Act,
the Exchange Act, the rules and regulations promulgated thereunder, and
the requirements of any stock exchange or public trading market upon which the
Shares may then be listed, and shall be further subject to the approval of
counsel for the Company with respect to such compliance. As a condition to the
exercise of the Option, the Company may require the Optionee to represent and
warrant at the time of any such exercise that the Shares are being purchased
only for investment and without any present intention to sell or distribute
such Shares if, in the opinion of counsel for the Company, such a
representation is required by any of the aforementioned relevant provisions of
law. 

 

11.                                 Notices and Other Communications.

 

Any notice,
demand, request or other communication hereunder to any party shall be deemed
to be sufficient if contained in a written instrument delivered in person or
duly sent by first class registered, certified or overnight mail, postage
prepaid, or telecopied with a confirmation copy by regular, certified or
overnight mail, addressed or telecopied, as the case may be, (i) if to the
Optionee, at his or her residence address last filed with the Company and (ii) if
to the Company, at its principal place of business, addressed to the attention of
its Chief Financial Officer, or to such other address or telecopier number or
electronic mail address, as the case may be, as the addressee may have
designated by notice to the addressor. All such notices, requests, demands and
other communications shall be

 

 

deemed to have
been received: (i) in the case of personal delivery, on the date of such
delivery; (ii) in the case of mailing, when received by the addressee; (iii) in
the case of facsimile transmission, when confirmed by facsimile machine report;
and (iv) in the case of electronic mail, when directed to an electronic
mail address at which the receiving party has consented to receive notice,
provided, that such consent is deemed revoked if the sender is unable to
deliver by electronic transmission two consecutive notices and such inability
becomes known to the secretary or assistant secretary of the Company or to the
transfer agent, or other person responsible for giving notice.

 

Dated the           
day of                                                 .

 

	
   

  	
  MONOLITHIC SYSTEM TECHNOLOGY, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Its:

  	
   

  	
   

  
	
   

  	
  Duly authorized on behalf of the Board of Directors

  

 

The Optionee
acknowledges receipt of copies of the Plan and
represents that he or she is familiar with the terms and provisions thereof,
and hereby accepts this Option subject to all of the terms and provisions of
the Plan and this Stock Option Grant. 
The Optionee hereby agrees to accept as binding, conclusive and final
all decisions or interpretations of the Committee upon any questions arising
under the Plan.

 

	
   

  	
   

  	
   

  
	
   

  	
  Optionee

  

 

Date:                      
    , 20    

 

CONSENT OF
SPOUSE/DOMESTIC PARTNER

 

I,                                                   ,
spouse/domestic partner of the Optionee who executed the foregoing Agreement,
hereby agree that my spouse’s/domestic partner’s interest in the shares of
Common Stock subject to said Agreement shall be irrevocably bound by the
Agreement’s terms.  I further agree that
my community property interest in such shares, if any, shall similarly be bound
by said Agreement and that such consent is binding upon my executors,
administrators, heirs and assigns.  I
agree to execute and deliver such documents as may be necessary to carry out
the intent of said Agreement and this consent.

 

 

	
   

  	
   

  	
   

  
	
   

  	
  Spouse/Domestic Partner

  

 

 

APPENDIX I

 

MONOLITHIC
SYSTEM TECHNOLOGY, INC.

 

NOTICE OF
EXERCISE OF STOCK OPTION

 

I                                                                                 
(print legibly) hereby elect to exercise the following stock options(s) granted
to me by MONOLITHIC SYSTEM TECHNOLOGY, INC. (the “Company”) under its
Amended and Restated 2000 Stock Option and Equity Incentive Plan (the “Plan”).  All shares being purchased are fully vested
and exercisable pursuant to Section 3 of the listed Option Agreement.

 

	
  1.

  	
   

  	
  Shares at $

  	
   

  	
  per share (Grant date):

  	
   

  	
   )

  
	
  2.

  	
   

  	
  Shares at $

  	
   

  	
  per share (Grant date):

  	
   

  	
   )

  
	
  3.

  	
   

  	
  Shares at $

  	
   

  	
  per share (Grant date):

  	
   

  	
   )

  
	
  4.

  	
   

  	
  Shares at $

  	
   

  	
  per share (Grant date):

  	
   

  	
   )

  

 

Cash exercise
in the amount of $                                         

Shares purchased under the Plan should be issued to me as follows:

Name:
                                                                                                

 

If you choose to
include your spouse, you must designate below how you wish your shares to be
registered by checking the appropriate box. 
If we receive no designation, the shares will be designated as Joint
Tenants.

 

	
  o Joint Tenants

  	
  o Community Property

  
	
  o Tenants in Common

  	
  o Tenancy by Entirety

  

 

Verification by                                                                                     Stock
Administration

 

Certificate to be delivered to (complete item 1 or 2 below)

1.               Employee
                                                                                                                                                                                     Home
Address:

 

2.               (Insert
Name of Second Broker)                                                                                                                                                                                     

Acct #:                                                                                             

Contact Name & Number:                                                                                    

 

	
   

  	
  Signature:
  

  	
   

  	
   

  	
   

  	
  Date:

  	
   

  	
   

  
	
   

  	
  Social
  Security No.:

  	
   

  	
   

  	
   

  	
   

  
										

 

[For Company Use Only]

 

As of the date set forth above, the above
named person has the vested right to exercise the number of shares set forth
above.

 

	
  Date:

  	
   

  	
   

  	
   

  	
   

  
	
  Amount due Company: $

  	
   

  	
   

  	
   

  
						

 

Monolithic System Technology, Inc. Stock
Administration

755 N.
Mathilda Avenue

Sunnyvale, California 94085

(408) 731-1800

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