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EXHIBIT 10.36    
  

 
 

SILICON IMAGE, INC.    
    
    CMD TECHNOLOGY INC.    
    
    1999 STOCK INCENTIVE PLAN    
  

Assumed by Silicon Image, Inc. effective June 7, 2001

and as amended September 7, 2001 

    This
1999 STOCK INCENTIVE PLAN (the "Plan") was established by CMD Technology, Inc., a California corporation and adopted by its Board of Directors as of the ninth day of
August, 1999 (the "Effective Date"), and later assumed by Silicon Image, Inc. (the "Company"). 

 
 

ARTICLE 1
  
    PURPOSES OF THE PLAN    
  

    1.1 Purposes.  The purposes of the Plan are (a) to
enhance the Company's ability to attract and retain the services of qualified employees, officers and directors (including non-employee officers and directors), and consultants and other
service providers upon whose judgment, initiative and efforts the successful conduct and development of the Company's business largely depends, and (b) to provide additional
incentives to such persons or entities to devote their utmost effort and skill to the advancement and betterment of the Company, by providing them an opportunity to participate in the ownership of the
Company and thereby have an interest in the success and increased value of the Company. 

 
 

ARTICLE 2
  
    DEFINITIONS    
  

    For purposes of this Plan, the following terms shall have the meanings indicated: 

    2.1 Administrator.  "Administrator" means the Board or, if the Board delegates
responsibility for any matter to the Committee, the term Administrator shall mean the Committee. 

    2.2 Affiliated Company.  "Affiliated Company" means any "parent corporation" or
"subsidiary corporation" of the Company, whether now existing or hereafter created or acquired, as those terms are defined in Sections 424(e) and 424(f) of the Code, respectively. 

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

    2.4 Change in Control. "Change in Control" shall mean (i) a dissolution or
liquidation of the Company, (ii) a merger or consolidation in which the Company is not the surviving corporation (other than a merger or consolidation with a wholly-owned subsidiary, a
reincorporation of the Company in a different jurisdiction, or other transaction in which there is no substantial change in the stockholders of the Company or their relative stock holdings and the
Options and the Restricted Stock granted under this Plan are assumed, converted or replaced by the successor corporation, which assumption will be binding on all Participants), (iii) a merger
in which the Company is the surviving corporation but after which the stockholders of the Company immediately prior to such merger (other than any stockholder that merges, or which owns or controls
another corporation that merges, with the Company in such merger) cease to own their shares or other equity interest in the Company, (iv) the sale of substantially all of the assets of the
Company, or (v) the acquisition, sale, or transfer of more than 50% of the outstanding shares of the Company by tender offer or similar transaction. 

    2.5 Code.  "Code" means the Internal Revenue Code of 1986, as amended from time
to time. 

    2.6 Committee.  "Committee" means a committee of two or more members of the Board
appointed to administer the Plan, as set forth in Section 7.1 hereof. 

 

    2.7 Common Stock.  "Common Stock" means the Common Stock of the Company, subject
to adjustment pursuant to Section 4.2 hereof. 

    2.8 Disability.  "Disability" means permanent and total disability as defined in
Section 22(e)(3) of the Code. The Administrator's determination of a Disability or the absence thereof shall be conclusive and binding on all interested parties. 

    2.9 Effective Date.  "Effective Date" means the date on which the Plan is adopted
by the Board, as set forth on the first page hereof. 

    2.10 Exercise Price.  "Exercise Price" means the purchase price per share of
Common Stock payable upon exercise of an Option. 

    2.11 Fair Market Value.  "Fair Market Value" means, as of any date, the value of
a share of the Company's Common Stock determined as follows: 

    (a) if
such Common Stock is then quoted on the Nasdaq National Market, its closing price on the Nasdaq National Market on the date of determination as reported in  The Wall Street Journal; 

    (b) if
such Common Stock is publicly traded and is then listed on a national securities exchange, its closing price on the date of determination on the principal
national securities exchange on which the Common Stock is listed or admitted to trading as reported in The Wall Street Journal; 

    (c) if
such Common Stock is publicly traded but is not quoted on the Nasdaq National Market nor listed or admitted to trading on a national securities exchange, the
average of the closing bid and asked prices on the date of determination as reported in The Wall Street Journal; or 

    (d) if
none of the foregoing is applicable, by the Committee in good faith. 

    2.12 Incentive Option.  "Incentive Option" means any Option designated and
qualified as an "incentive stock option" as defined in Section 422 of the Code. 

    2.13 Incentive Option Agreement.  "Incentive Option Agreement" means an
Option,Agreement with respect to an Incentive Option. 

    2.14 NASD Dealer.  "NASD Dealer" means a broker-dealer that is a member of the
National Association of Securities Dealers, Inc. 

    2.15 Nonqualified Option.  "Nonqualified Option" means any Option that is not an
Incentive Option. To the extent that any Option designated as an Incentive Option fails in whole or in part to qualify as an Incentive Option, including, without limitation, for failure to meet the
limitations applicable to a 10% Shareholder or because it exceeds the annual limit provided for in Section 5.6 below, it shall to that extent constitute a Nonqualified Option. 

    2.16 Nonqualified Option Agreement.  "Nonqualified Option Agreement" means an
Option Agreement with respect to a Nonqualified Option. 

    2.17 Offeree.  "Offeree" means a Participant to whom a Right to Purchase has been
offered or who has acquired Restricted Stock under the Plan. 

    2.18 Option.  "Option" means any option to purchase Common Stock granted pursuant
to the Plan. 

    2.19 Option Agreement.  "Option Agreement" means the written agreement entered
into between the Company and the Optionee with respect to an Option granted under the Plan. 

    2.20 Optionee.  "Optionee" means a Participant who holds an Option. 

2

 

    2.21 Participant.  "Participant" means an individual or entity who holds an
Option, a Right to Purchase or Restricted Stock under the Plan. 

    2.22 Purchase Price.  "Purchase Price" means the purchase price per share of
Restricted Stock payable upon acceptance of a Right to Purchase. 

    2.23 Restricted Stock.  "Restricted Stock" means shares of Common Stock issued
pursuant to Article 6 hereof, subject to any restrictions and conditions as are established pursuant to such Article 6.

    2.24 Right to Purchase.  "Right to Purchase" means a right to purchase Restricted
Stock granted to an Offeree pursuant to Article 6 hereof. 

    2.25 Service Provider.  "Service Provider" means a consultant or other person or
entity who provides services to the Company or an Affiliated Company and who the Administrator authorizes to become a Participant in the Plan. 

    2.26 Stock Purchase Agreement.  "Stock Purchase Agreement" means the written
agreement entered into between the Company and the Offeree with respect to a Right to Purchase offered under the Plan. 

    2.27 10% Shareholder.  "10% Shareholder" means a person who, as of a relevant
date, owns or is deemed to own (by reason of the attribution rules applicable under Section 424(d) of the Code) stock possessing more than 10% of the total combined voting power of all classes
of stock of the Company or of an Affiliated Company. 

 
 

ARTICLE 3
  
    ELIGIBILITY    
  

    3.1 Incentive Options.  Only employees of the Company or of an Affiliated Company
(including officers of the Company and members of the Board if they are employees of the Company or of an Affiliated Company) are eligible to receive Incentive Options under the Plan. 

    3.2 Nonqualified Options and Rights to Purchase.  Employees of the Company or of
an Affiliated Company, officers of the Company and members of the Board (whether or not employed by the Company or an Affiliated Company), and Service Providers are eligible to receive Nonqualified
Options or Rights to Purchase under the Plan. 

 
 

ARTICLE 4
  
    PLAN SHARES    
  

    4.1 Shares Subject to the Plan.  A total of 6,000,000 shares of Common Stock may
be issued under the Plan, subject to adjustment as to the number and kind of shares pursuant to Section 4.2 hereof. For purposes of this limitation, in the event that (a) all or any
portion of any Option or Right to Purchase granted or offered under the Plan can no longer under any circumstances be exercised, or (b) any shares of Common Stock are reacquired by the Company
pursuant to an Incentive Option Agreement, Nonqualified Option Agreement or Stock Purchase Agreement, the shares of Common Stock allocable to the unexercised portion of such Option or such Right to
Purchase, or the shares so reacquired, shall again be available for grant or issuance under the Plan. 

    4.2 Changes in Capital Structure.  In the event that the number of outstanding
shares is changed by a stock dividend, recapitalization, stock split, reverse stock split, subdivision, combination, reclassification or similar change in the capital structure of the Company without
consideration, then (a) the number of shares of Common Stock reserved for issuance under this Plan, (b) the Exercise Prices of and number of shares of Common Stock subject to outstanding
Options, and (d) the Purchase Prices of and number of shares of Common Stock subject to outstanding Restricted Stock Awardswill 

3

 

be proportionately adjusted, subject to any rqeuired action by the Board or the stockholders of the Company and compliance with applicable securities laws; provided, however,  that fractions of a share
of Common Stock will not be issued but will either be replaced by a cash payment equal to the Fair Market Value of such fraction of a share or will be
rounded up to the nearest whole share, as determined by the Committee. 

 
 

ARTICLE 5
  
    OPTIONS    
  

    5.1 Option Agreement.  Each Option granted pursuant to this Plan shall be
evidenced by an Option Agreement which shall specify the number of shares subject thereto, the Exercise Price per share, and whether the Option is an Incentive Option or Nonqualified Option. As soon
as is practical following
the grant of an Option, an Option Agreement shall be duly executed and delivered by or on behalf of the Company to the Optionee to whom such Option was granted. Each Option Agreement shall be in such
form and contain such additional terms and conditions, not inconsistent with the provisions of this Plan, as the Administrator shall, from time to time, deem desirable, including, without limitation,
the imposition of any right to repurchase a portion or all of the unvested shares held by an Optionee following such Optionee's termination of employment. Each Option Agreement may be different from
each other Option Agreement. 

    5.2 Exercise Price.  The Exercise Price per share of Common Stock covered by each
Option shall be determined by the Administrator, subject to the following: (a) the Exercise Price of an Incentive Option shall not be less than 100% of Fair Market Value on the date the
Incentive Option is granted, (b) the Exercise Price of a Nonqualified Option shall not be less than 85% of Fair Market Value on the date the Nonqualified Option is granted, and (c) if
the person to whom an Incentive Option is granted is a 10% Shareholder on the date of grant, the Exercise Price shall not be less than 110% of Fair Market Value on the date the Incentive Option is
granted. 

    5.3 Payment of Exercise Price.  Payment of the Exercise Price shall be made upon
exercise of an Option and may be made, in the discretion of the Administrator, subject to any legal restrictions, by: (a) cash; (b) check; (c) the surrender of shares of Common
Stock owned by the Optionee that have been held by the Optionee for at least six (6) months, which surrendered shares shall be valued at Fair Market Value as of the date of such exercise;
(d) by tender of a full recourse promissory note having such terms as may be approved by the Committee and bearing interest at a rate sufficient to avoid imputation of income under Sections 483
and 1274 of the Code; provided, however, that Participants who are not employees or directors of the Company will not be entitled to purchase shares
with a promissory note unless the note is adequately secured by collateral other than such shares; (e) the cancellation of indebtedness of the Company to the Optionee; (f) the waiver of
compensation due or accrued to the Optionee for services rendered; (g) provided that a public market for the Common Stock exists, a "same day sale" commitment from the Optionee and an NASD
Dealer whereby the Optionee irrevocably elects to exercise the Option and to sell a portion of the shares so purchased to pay for the Exercise Price and whereby the NASD Dealer irrevocably commits
upon receipt of such shares to forward the Exercise Price directly to the Company; (h) provided that a public market for the Common Stock exists, a "margin" commitment from the Optionee and an
NASD Dealer whereby the Optionee irrevocably elects to exercise the Option and to pledge the shares so purchased to the NASD Dealer in a margin account as security for a loan from the NASD Dealer in
the amount of the Exercise Price, and whereby the NASD Dealer irrevocably commits upon receipt of such shares to forward the Exercise Price directly to the Company; or (i) any
combination-of the foregoing methods of payment or any other consideration or method of payment as shall be permitted by applicable corporate law. 

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    5.4 Term and Termination of Options. The term and provisions for termination of each Option
shall be as fixed by the Administrator, but no Option may be exercisable more than ten (10) years after the date it is granted. An Incentive Option granted to a person who is a 10% Shareholder
on the date of grant shall not be exercisable more than five (5) years after the date it is granted. 

    5.5 Vesting and Exercise of Options.  Each Option shall vest and become
exercisable in one or more installments at such time or times and subject to such conditions, including without limitation the achievement of specified performance goals or objectives, as shall be
determined by the Administrator. 

    5.6 Annual Limit on Incentive Options.  To the extent required for "incentive
stock option" treatment under Section 422 of the Code, the aggregate Fair Market Value (determined as of the time of grant) of the Common Stock shall not, with respect to which Incentive
Options granted under this Plan and any other plan of the Company or any Affiliated Company become exercisable for the first time by an Optionee during any calendar year, exceed $100.000. 

    5.7 Nontransferability of Options.  No Option shall be assignable or transferable
except by will or the laws of descent and distribution, and during the life of the Optionee shall be exercisable only by such Optionee. 

    5.8 Rights as Shareholder.  An Optionee or permitted transferee of an Option
shall have no rights or privileges as a shareholder with respect to any shares covered by an Option until such Option has been duly exercised and certificates representing shares purchased upon such
exercise have been issued to such person. 

    5.9 Restrictions on Shares.  At the discretion of the Committee, the Company may
reserve to itself and/or its assignee(s) in the Option agreement a right to repurchase a portion of or all unvested shares held by an Optionee following such Optionee's termination of employment at
any time within ninety (90) days after the later of Optionee's termination date and the date the Optionee purchases Shares under this Plan, for cash and/or cancellation of purchase money
indebtedness, at the Optionee's exercise price. 

 
 

ARTICLE 6
  
    RIGHTS TO PURCHASE    
  

    6.1 Nature of Right to Purchase.  A Right to Purchase granted to an Offeree
entitles the Offeree to purchase, for a Purchase Price determined by the Administrator, shares of Common Stock subject to such terms, restrictions and conditions as the Administrator may determine at
the time of grant ("Restricted Stock"). Such conditions may include, but are not limited to, continued employment or the achievement of specified performance goals or objectives. 

    6.2 Acceptance of Right to Purchase.  An Offeree shall have no rights with
respect to the Restricted Stock subject to a Right to Purchase unless the Offeree shall have accepted the Right to Purchase within ten (10) days (or such longer or shorter period as the
Administrator may specify) following the grant of the Right to Purchase by making payment of the full Purchase Price to the Company in the manner set forth in Section 6.3 hereof and by
executing and delivering to the Company a Stock Purchase Agreement. Each Stock Purchase Agreement shall be in such form, and shall set forth the Purchase Price and such other terms, conditions and
restrictions of the Restricted Stock, not inconsistent with the provisions of this Plan, as the Administrator shall, from time to time, deem desirable. Each Stock Purchase Agreement may be different
from each other Stock Purchase Agreement. 

    6.3 Payment of Purchase Price.  Subject to any legal restrictions, payment of the
Purchase Price upon acceptance of a Right to Purchase Restricted Stock may be made, in the discretion of the Administrator, by: (a) cash; (b) check; (c) the surrender of shares of
Common Stock owned by the 

5

 

Offeree that have been held by the Offeree for at least six (6) months, which surrendered shares shall be valued at Fair Market Value as of the date of such exercise; (d) by tender of a
full recourse promissory note having such terms as may be approved by the Committee and bearing interest at a rate sufficient to avoid imputation of income under Sections 483 and 1274 of the Code;  provided, however,
that Participants who are not employees or directors of the Company will not be entitled to purchase shares with a promissory note
unless the note is adequately secured by collateral other than such shares; (e) the cancellation of indebtedness of the Company to the Offeree; (f) the waiver of compensation due or
accrued to the Offeree for services rendered; or (g) any combination of the foregoing methods of payment or any other consideration or method of payment as shall be permitted by applicable
corporate law. 

    6.4 Rights as a Shareholder.  Upon complying with the provisions of
Section 6.2 hereof, an Offeree shall have the rights of a shareholder with respect to the Restricted Stock purchased pursuant to the Right to Purchase, including voting and dividend rights,
subject to the terms, restrictions and conditions as are set forth in the Stock Purchase Agreement. Unless the Administrator shall determine otherwise, certificates evidencing shares of Restricted
Stock shall remain in the possession of the Company until such shares have vested in accordance with the terms of the Stock Purchase Agreement. 

    6.5 Restrictions. Shares of Restricted Stock may not be sold, assigned, transferred, pledged or
otherwise encumbered or disposed of except as specifically provided in the Stock Purchase Agreement. In the event of termination of a Participant's employment, service as a director of the Company or
Service Provider status for any reason whatsoever (including death or disability), the Stock Purchase Agreement may provide, in the discretion of the Administrator, that the Company shall have the
right, exercisable at the discretion of the Administrator, to repurchase (i) at the original Purchase Price, any shares of Restricted Stock which have not vested as of the date of termination,
and (ii) at Fair Market Value, any shares of Restricted Stock which have vested as of such date, on such terms as may be provided in the Stock Purchase Agreement. 

    6.6 Vesting of Restricted Stock.  The Stock Purchase Agreement shall specify the
date or dates, the performance goals or objectives which must be achieved, and any other conditions on which the Restricted Stock may vest. 

    6.7 Dividends.  If payment for shares of Restricted Stock is made by promissory
note, any cash dividends paid with respect to the Restricted Stock may be applied, in the discretion of the Administrator, to repayment of such note. 

    6.8 Nonassignability of Rights.  No Right to Purchase shall be assignable or
transferable except by will or the laws of descent and distribution or as otherwise provided by the Administrator. 

 
 

ARTICLE 7
  
    ADMINISTRATION OF THE PLAN    
  

    7.1 Administrator.  Authority to control and manage the operation and
administration of the Plan shall be vested in the Board, which may delegate such responsibilities in whole or in part to a committee consisting of two (2) or more members of the Board (the
"Committee"). Members of the Committee may be appointed from time to time by, and shall serve at the pleasure of, the Board. As used herein, the term "Administrator" means the Board or, with respect
to any matter as to which responsibility has been delegated to the Committee, the term Administrator shall mean the Committee. 

    7.2 Powers of the Administrator.  In addition to any other powers or authority
conferred upon the Administrator elsewhere in the Plan or by law, the Administrator shall have full power and authority: (a) to determine the persons to whom, and the time or times at which,
Incentive Options or Nonqualified Options shall be granted and Rights to Purchase shall be offered, the number of shares to be represented by each Option and Right to Purchase and the consideration to
be received by the 

6

 

Company upon the exercise thereof; (b) to interpret the Plan; (c) to create, amend or rescind rules and regulations relating to the Plan; (d) to determine the terms, conditions
and restrictions contained in, and the form of, Option Agreements and Stock Purchase Agreements: (e) to determine the identity or capacity of any persons who may be entitled to exercise a
Participant's rights under any Option or Right to Purchase under the Plan: (f) to correct any defect or supply any omission or reconcile any inconsistency in the Plan or in any Option Agreement
or Stock Purchase Agreement; (g) to accelerate
the vesting of any Option or release or waive any repurchase rights of the Company with respect to Restricted Stock: (h) to extend the exercise date of any Option or acceptance date of any
Right to Purchase; (i) to provide for repurchase rights; (j) to amend outstanding Option Agreements and Stock Purchase Agreements to provide for, among other things, any change or
modification which the Administrator could have provided for upon the grant of an Option or Right to Purchase or in furtherance of the powers provided for herein; and (k) to make all other
determinations necessary or advisable for the administration of the Plan, but only to the extent not contrary to the express provisions of the Plan. Any action, decision, interpretation or
determination made in good faith by the Administrator in the exercise of its authority conferred upon it under the Plan shall be final and binding on the Company and all Participants. 

    7.3 Limitation on Liability.  No employee of the Company or member of the Board
or Committee shall be subject to any liability with respect to duties under the Plan unless the person acts fraudulently or in bad faith: To the extent permitted by law, the Company shall indemnify
each member of the Board or Committee, and any employee of the Company with duties under the Plan, who was or is a party, or is threatened to be made a party, to any threatened, pending or completed
proceeding, whether civil, criminal, administrative or, investigative, by reason of such person's conduct in the performance of duties under the Plan. 

 
 

ARTICLE 8
  
    CHANGE IN CONTROL    
  

    8.1 Change in Control.  In order to preserve a Participant's rights in the event
of a Change in Control of the Company: 

    (a) any
or all outstanding Options may be assumed, converted or replaced by the successor corporation (if any), which assumption, conversion or replacement will be
binding on all Participants. In the alternative, the successor corporation may substitute equivalent Options or provide substantially similar consideration to Participants as was provided to
stockholders (after taking into account the existing provisions of the Options). The successor corporation may also issue, in place of outstanding shares of the Company held by the Participant,
substantially similar shares or other property subject to repurchase restrictions no less favorable to the Participant. In the event such successor corporation (if any) refuses to assume or substitute
Options, as provided above, pursuant to a Change in Control, such Options will expire on such transaction at such time and on such conditions as the Committee will determine. Notwithstanding anything
in this Plan to the contrary, the Committee may, in its sole discretion, provide that the vesting of any or all Options granted pursuant to this Plan will accelerate upon a Change in Control. If the
Committee exercises such discretion with respect to Options, such Options will become exercisable in full prior to the consummation of such event at such time and on such conditions as the Committee
determines, and if such Options are not exercised prior to the consummation of the corporate transaction, they shall terminate at such time as determined by the Committee. 

    (b) Subject
to any greater rights granted to Participants under the foregoing provisions of this Section, in the event of the occurrence of a Change in Control, any
outstanding Options or Restricted Stock will be treated as provided in the applicable agreement or plan of merger, consolidation, dissolution, liquidation, or sale of assets. 

7

 

    (c) The Company, from time to time, also may substitute or assume outstanding awards granted by another company, whether in connection with an acquisition of such other
company or otherwise, by either; (a) granting an Option or Restricted under this Plan in substitution of such other company's award; or (b) assuming such award as if it had been granted
under this Plan if the terms of such assumed award could be applied to an Option granted under this Plan. Such substitution or assumption will be permissible if the holder of the substituted or
assumed award would have been eligible to be granted an Option or Restricted Stock under this Plan if the other company had applied the rules of this Plan to such grant. In the event the Company
assumes an award granted by another company, the terms and conditions of such award will remain unchanged (except that the exercise price and the number
and nature of shares issuable upon exercise of any such option will be adjusted appropriately pursuant to Section 424(a) of the Code). In the event the Company elects to grant a new Option
rather than assuming an existing option, such new Option may be granted with a similarly adjusted Exercise Price. 

 
 

ARTICLE 9
  
    AMENDMENT AND TERMINATION OF THE PLAN    
  

    9.1 Amendments.  The Board may from time to time alter, amend, suspend or
terminate the Plan in such respects as the Board may deem advisable. No such alteration, amendment, suspension or termination shall be made which shall substantially affect or impair the rights of any
Participant under an outstanding Option Agreement or Stock Purchase Agreement without such Participant's consent. The Board may alter or amend the Plan to comply with requirements under the Code
relating to Incentive Options or other types of options which give Optionees more favorable tax treatment than that applicable to Options granted under this Plan as of the date of its adoption. Upon
any such alteration or amendment, any outstanding Option granted hereunder may, if the Administrator so determines and if permitted by applicable law, be subject to the more favorable tax treatment
afforded to an Optionee pursuant to such terms and conditions. 

    9.2 Plan Termination.  Unless the Plan shall theretofore have been terminated,
the Plan shall terminate on the tenth (10th) anniversary of the Effective Date and no Options or Rights to Purchase may be
granted under the Plan thereafter, but Option Agreements, Stock Purchase Agreements and Rights to Purchase then outstanding shall continue in effect in accordance with their respective terms. 

 
 

ARTICLE 10
  
    TAX WITHHOLDING    
  

    10.1 Withholding.  The Company shall have the power to withhold, or require a
Participant to remit to the Company, an amount sufficient to satisfy any applicable Federal, state, and local tax withholding requirements with respect to any Options exercised or Restricted Stock
issued under the Plan. To the extent permissible under applicable tax, securities and other laws, the Administrator may, in its sole discretion and upon such terms and conditions as it may deem
appropriate, permit a Participant to satisfy his or her obligation to pay any such tax, in whole or in part, up to an amount determined on the basis of the highest marginal tax rate applicable to such
Participant, by (a) directing the Company to apply shares of Common Stock to which the Participant is entitled as a result of the exercise of an Option or.as a result of the purchase of or
lapse of restrictions on Restricted Stock or (b) delivering to the Company shares of Common Stock owned by the Participant. The shares of Common Stock so applied or delivered in satisfaction of
the Participant's tax withholding obligation shall be valued at their Fair Market Value as of the date of measurement of the amount of income subject to withholding. 

8

 
 
 

ARTICLE 11
  
    MISCELLANEOUS    
  

    11.1 Benefits Not Alienable.  Other than as provided above, benefits under the
Plan may not be assigned or alienated, whether voluntarily or involuntarily. Any unauthorized attempt at assignment, transfer, pledge or other disposition shall be without effect. 

    11.2 No Enlargement of Employee Rights.  This Plan is strictly a voluntary
undertaking on the part of the Company and shall not be deemed to constitute a contract between the Company and any Participant to be consideration for, or an inducement to, or a condition of, the
employment of any Participant. Nothing contained in the Plan shall be deemed to give the right to any Participant to be retained as an
employee of the Company or any Affiliated Company or to limit the right of the Company or any Affiliated Company to discharge any Participant at any time. 

    11.3 Application of Funds.  The proceeds received by the Company from the sale of
Common Stock pursuant to Option Agreements and Stock Purchase Agreements, except as otherwise provided herein, will be used for general corporate purposes. 

    11.4 Annual Financial Statements.  A copy of the Company's financial statements
for the most recently completed fiscal year shall be provided to each Participant annually. Such financial statements shall be prepared in accordance with generally accepted accounting principles. The
Administrator may require that Participants sign an appropriate confidentiality agreement as a condition to receiving a copy of the financial statements. 

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SILICON IMAGE INC.
  
    STOCK OPTION AGREEMENT    
  

	
Type of Option (check one):	
 	

/ / Incentive	
 	

/ / Nonqualified

    This
Stock Option Agreement (the "Agreement) is entered into as of      , 20  , by and between Silicon Image Inc., a Delaware corporation (the
"Company"), and                        (the "Optionee") pursuant to the CMD Technology, Inc.'s 1999 Stock Incentive Plan (the
"Plan") assumed by the Company. 

    1.  Grant of Option.  The Company hereby grants to Optionee an option (the
"Option") to purchase all or any portion of a total of            (      ) shares (the "Shares") of the Common Stock of the Company at a purchase price
of            
($      ) per share (the "Exercise Price"), subject to the terms and conditions set forth herein and the provisions of the Plan. If the box marked "Incentive" above is checked, then this
Option is intended to qualify as an "incentive stock option" as defined in Section 422 of the Internal Revenue Code of 1986, as amended (the "Code"). If this Option fails in whole or in part to
qualify as an incentive stock option, or if the box marked "Nonqualified" is checked, then this Option shall to that extent constitute a nonqualified stock option. 

    2.  Vesting of Option.  The right to exercise this Option shall vest in
installments, and this Option shall be exercisable from time to time in whole or in part as to any vested installment, as follows: 

	 On or After:	 	This Option shall be

Exercisable as to:
	(i)	 	, 20  :	 	 	shares
	(ii)	 	, 20  :	 	an additional	shares
	(iii)	 	, 20  :	 	an additional	shares
	(iv)	 	, 20  :	 	an additional	shares

No
additional shares shall vest after the date of termination of Optionee's "Continuous Service" (as defined in Section 3 below), but this Option shall continue to be exercisable in accordance
with Section 3 hereof, with respect to that number of shares that have vested as of the date of termination of Optionee's Continuous Service. 

    3.  Term of Option.  Optionee's right to exercise this Option shall terminate
upon the first to occur of the following: 

    (a) the
expiration of ten (10) years from the date of this Agreement; 

    (b) the
expiration of three (3) months from the date of termination of Optionee's Continuous Service if such termination occurs for any reason other than
permanent disability or death; provided, however, that if Optionee dies during such three-month period the provisions of Section 3(e) below shall apply; 

    (c) the
expiration of twelve (12) months from the date of termination of Optionee's Continuous Service if such termination is due to permanent disability of the
Optionee (as defined in Section 22(e)(3) of the Code); 

    (d) the
expiration of twelve (12) months from the date of termination of Optionee's Continuous Service if such termination is due to Optionee's death or if death
occurs during either the three-month or one-month period following termination of Optionee's Continuous Service pursuant to Section 3(b) or 3(c) above, as the case may be; or 

    (e) upon
the consummation of a "Change in Control" (as defined in Section 2.4 of the Plan), unless otherwise provided pursuant to Section 12 below. 

    As
used herein, the term "Continuous Service" means (i) employment by either the Company or any parent or subsidiary corporation of the Company, or by a corporation or a parent
or subsidiary of a corporation issuing or assuming a stock option in a transaction to which Section 424(a) of the Code 

 

applies, which is uninterrupted except for vacations, illness (except for permanent disability, as defined in Section 22(e)(3) of the Code), or leaves of absence which are approved in writing
by the Company or any of such other employer corporations, if applicable, (ii) service as a member of the Board of Directors of the Company until Optionee resigns, is removed from office, or
Optionee's term of office expires and he or she is not reelected, or (iii) so long as Optionee is engaged as a consultant or service provider to the Company or other corporation referred to in
clause (i) above. 

    4.  Exercise of Option.  On or after the vesting of any portion of this Option in
accordance with Sections 2 or 12 hereof, and until termination of the right to exercise this Option in accordance with Section 3 above, the portion of this Option which has vested may be
exercised in whole or in part by the Optionee (or, after his or her death, by the person designated in Section 5 below) upon delivery of the following to the Company at its principal executive
offices: 

    (a) a
written notice of exercise which identifies this Agreement and states the number of Shares then being purchased (but no fractional Shares may be purchased); 

    (b) a
check or cash in the amount of the Exercise Price (or payment of the Exercise Price in such other form of lawful consideration as the Administrator may approve
from time to time under the provisions of Section 5.3 of the Plan); 

    (c) a
check or cash in the amount reasonably requested by the Company to satisfy the Company's withholding obligations under federal, state or other applicable tax laws
with respect to the taxable income, if any, recognized by the Optionee in connection with the exercise of this Option (unless the Company and Optionee shall have made other arrangements for deductions
or withholding from Optionee's wages, bonus or other compensation payable to Optionee, or by the withholding of Shares issuable upon exercise of this Option or the delivery of Shares owned by the
Optionee in accordance
with Section 10.1 of the Plan, provided such arrangements satisfy the requirements of applicable tax laws); and 

    (d) a
letter, if requested by the Company, in such form and substance as the Company may require, setting forth the investment intent of the Optionee, or person
designated in Section 5 below, as the case may be. 

    5.  Death of Optionee: No Assignment.  The rights of the Optionee under this
Agreement may not be assigned or transferred except by will or by the laws of descent and distribution, and may be exercised during the lifetime of the Optionee only by such Optionee, Any attempt to
sell, pledge, assign, hypothecate, transfer or dispose of this Option in contravention of this Agreement or the Plan shall be void and shall have no effect. If the Optionee's Continuous Service
terminates as a result of his or her death, and provided Optionee's rights hereunder shall have vested pursuant to Section 2 hereof. Optionee's legal representative, his or her legatee, or the
person who acquired the right to exercise this Option by reason of the death of the Optionee (individually, a "Successor") shall succeed to the Optionee's rights and obligations under this Agreement.
After the death of the Optionee, only a Successor may exercise this Option. 

    6.  Representations and Warranties of Optionee.

    (a) Optionee
represents and warrants that this Option is being acquired by Optionee for Optionee's personal account, for investment purposes only, and not with a view
to the distribution, resale or other disposition thereof. 

    (b) Optionee
acknowledges that the Company may issue Shares upon the exercise of the Option without registering such Shares under the Securities Act of 1933, as amended
(the "Securities Act"), on the basis of certain exemptions from such registration requirement. Accordingly, Optionee agrees that his or her exercise of the Option may be expressly conditioned upon his
or her delivery to the Company of an investment certificate including such representations and undertakings as the Company may reasonably require in order to assure the availability of such
exemptions, including a representation that Optionee is acquiring the Shares for 

2

 

investment and not with a present intention of selling or otherwise disposing thereof and an agreement by Optionee that the certificates evidencing the Shares may bear a legend indicating such
non-registration under the Securities Act and the resulting restrictions on transfer. Optionee acknowledges that, because Shares received upon exercise of an Option may be unregistered,
Optionee may be required to hold the Shares indefinitely unless they are subsequently registered for resale under the Securities Act or an exemption from such registration is available. 

    (c) Optionee
acknowledges receipt of a copy of the Plan and understands that all rights and obligations connected with this Option are set forth in this Agreement and
in the Plan. 

    7.  INTENTIONALLY LEFT BLANK  

     8.  INTENTIONALLY LEFT BLANK  

    9.  INTENTIONALLY LEFT BLANK  

    10. Restrictive Legends.  Optionee hereby acknowledges that federal securities laws and the securities
laws of the state in which he or she resides may require the placement of certain restrictive legends upon the Shares issued upon exercise of this Option, and Optionee hereby consents to the placing
of any such legends upon certificates evidencing the Shares as the Company, or its counsel, may deem necessary or advisable. 

    11. Adjustments Upon Changes in Capital Structure.  In the event that the
outstanding shares of Common Stock of the Company are hereafter increased or decreased or changed into or exchanged for a different number or kind of shares or other securities of the Company by
reason of a recapitalization, stock split, combination of shares, reclassification, stock dividend or other change in the capital structure of the Company, then appropriate adjustment shall be made by
the Administrator to the number of Shares subject to the unexercised portion of this Option and to the Exercise Price per share, in order to preserve, as nearly as practical, but not to increase, the
benefits of the Optionee under this Option, in accordance with the provisions of Section 4.2 of the Plan. 

    12. INTENTIONALLY LEFT BLANK  

    13. No Employment Contract Created.  Neither the granting of this Option nor the exercise hereof shall be
construed as granting to the Optionee any right with respect to continuance of employment by the Company or any of its subsidiaries. The right of the Company or any of its subsidiaries to terminate at
will the Optionee's employment at any time (whether by dismissal, discharge or otherwise), with or without cause; is specifically reserved. 

    14. Rights as Shareholder.  The Optionee (or transferee of this option by will or
by the laws of descent and distribution) shall have no rights as a shareholder with respect to any Shares covered by this Option until such person has duly exercised this Option, paid the Exercise
Price and become a holder of record of the Shares purchased. 

    15. "Market Stand-Off" Agreement.  Optionee, if requested by the
Company and an underwriter of Common Stock (or other securities) of the Company, agrees not to sell or otherwise transfer or dispose of any Common Stock (or other securities) of the Company held by
Optionee during the period requested by the managing underwriter following the effective date of a registration statement of the Company filed under the Securities Act of 1933, as amended, provided
that all officers and directors of the Company are required to enter into similar agreements. Such agreement shall be in writing in a form satisfactory to the Company and such underwriter. The Company
may impose stop-transfer instructions with respect to the shares (or other securities) subject to the foregoing restriction until the end of such period. 

    16. Interpretation.  This Option is granted pursuant to the terms of the Plan,
and shall in all respects be interpreted in accordance therewith. The Administrator shall interpret and construe this 

3

 

Option and the Plan, and any action, decision, interpretation or determination made in good faith by the Administrator shall be final and binding on the Company and the Optionee. As used in this
Agreement, the term "Administrator" shall refer to the committee of the Board of Directors of the Company appointed to administer the Plan, and if no such committee has been appointed, the term
Administrator shall mean the Board of Directors. 

    17. Notices.  Any notice, demand or request required or permitted to be given
under this Agreement shall be in writing and shall be deemed given when delivered personally or three (3) days after being deposited in the United States mail, as certified or registered mail,
with postage prepaid, and addressed, if to the Company, at its principal place of business, Attention: the Chief Financial Officer, and if to the Optionee, at his or her most recent address as shown
in the employment or stock records of the Company. 

    18. Governing Law.  The validity, construction, interpretation, and effect of
this Option shall be governed by and determined in accordance with the laws of the State of California. 

    19. Severability.  Should any provision or portion of this Agreement be held to
be unenforceable or invalid for any reason, the remaining provisions and portions of this Agreement shall be unaffected by such holding. 

    20. Counterparts.  This Agreement may be executed in two or more counterparts,
each of which shall be deemed an original and all of which together shall be deemed one instrument. 

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

	SILICON IMAGE INC.	 	"OPTIONEE"
	

By:	

	
 	

  
 (Signature)
	

 	

 	
 	

  
 (Type or print name)

4

 
 
 

CONSENT OF SPOUSE    
  

    I acknowledge that I have read the foregoing Incentive Stock Option Agreement (the "Agreement") and that I know its contents. I am aware that by its
provisions, my spouse agrees, among other things, to the granting of rights to purchase and to the imposition of certain restrictions on the transfer of the shares of SILICON IMAGE INC., a
Delaware corporation, which my spouse acquires upon exercise of such option (the "Shares") including my community interest therein (if any), which rights and restrictions may survive my spouse's
death. I hereby consent to such rights and restrictions, approve of the provisions of the Agreement, and agree that I will bequeath any interest which I may have in said Shares or any of them,
including my community interest, if any, or permit any such interest to be purchased, in a manner consistent with the provisions of the Agreement. I direct that any residuary clause in my Will shall
not be deemed to apply to my community interest (if any) in such Shares except to the extent consistent with the provisions of the Agreement. 

    I
further agree that in the event of a dissolution of the marriage between me and my spouse, in connection with which I secure or am awarded the Shares or any interest therein through
property settlement agreement or otherwise, I shall receive and hold said Shares subject to all the provisions and restrictions contained in the foregoing Agreement, including any option of my spouse
or the Company to purchase such Shares or interest from me. 

    I
also acknowledge that I have been advised to obtain independent counsel to represent my interests with respect to the Agreement but that I have declined to do so and I hereby
expressly waive my right to such independent counsel. 

	Date:                        , 200 	 	
 (Signature of Spouse of Optionee)
	

 	
 	

 (Type or print name)

5

QuickLinks

EXHIBIT 10.36

SILICON IMAGE, INC. CMD TECHNOLOGY INC. 1999 STOCK INCENTIVE PLAN

ARTICLE 1 PURPOSES OF THE PLAN

ARTICLE 2 DEFINITIONS

ARTICLE 3 ELIGIBILITY

ARTICLE 4 PLAN SHARES

ARTICLE 5 OPTIONS

ARTICLE 6 RIGHTS TO PURCHASE

ARTICLE 7 ADMINISTRATION OF THE PLAN

ARTICLE 8 CHANGE IN CONTROL

ARTICLE 9 AMENDMENT AND TERMINATION OF THE PLAN

ARTICLE 10 TAX WITHHOLDING

ARTICLE 11 MISCELLANEOUS

SILICON IMAGE INC. STOCK OPTION AGREEMENT

CONSENT OF SPOUSEPrepared by MERRILL CORPORATION

QuickLinks
 -- Click here to rapidly navigate through this document
  

 
 

EXHIBIT 10.37    
  

SILICON IMAGE, INC.  

SILICON COMMUNICATION LAB, INC.  

 1999 STOCK OPTION PLAN  

Assumed by Silicon Image, Inc. effective July 6, 2001

and as amended September 7, 2001 

    1.  Purposes of the Plan.  The purposes of this Stock Option Plan are to attract and retain the best
available personnel for positions of substantial responsibility, to provide additional incentive to Employees and Consultants of the Company and its Subsidiaries and to promote the success of the
Company's business. Options granted under the Plan may be incentive stock options (as defined under Section 422 of the Code) or nonstatutory stock options, as determined by the Administrator at
the time of grant of an option and subject to the applicable provisions of section 422 of be Code, as amended, and the regulations promulgated thereunder. 

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

    (a)  "Administrator"  means the Board or any of its Committees appointed pursuant to Section 4 of
the Plan. 

    (b)  "Board"  means the Board of Directors of the Company. 

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

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

    (e)  "Common Stock"  means the Common Stock of the Company. 

    (f)  "Company"  means Silicon Image, Inc. or any successor corporation. 

    (g)  "Consultant"  means any person who is engaged by the Company or any Parent or Subsidiary to render
consulting or advisory services and is compensated for such services, and any director of the Company whether compensated for such services or not. If and in the event the Company registers any class
of any equity security pursuant to the Exchange Act, the term Consultant shall thereafter not include directors who are not compensated for their services or are paid only a director's fee by the
Company. 

    (h)  "Continuous Status as an Employee or Consultant"  means that the employment or consulting
relationship with the Company, any Parent or Subsidiary is not interrupted or terminated. Continuous Status as an Employee or Consultant shall not be considered interrupted in the case of
(i) sick leave, (ii) military leave, or (iii) any other leave of absence approved by the Committee, provided, that such leave is for a period of not more than 90 days,
unless reemployment upon the expiration of such leave is guaranteed by contract or statute or unless provided otherwise pursuant to formal policy adopted from time to time by the Company and issued
and promulgated to employees in writing. In the case of any employee on an approved leave of absence, the Committee may make such provisions respecting suspension of vesting of the Option while on
leave from the employ of the Company as it may deem appropriate, except that in no event may an Option be exercised after the expiration of the term set forth in the Option agreement. The Committee
will have sole discretion to determine whether an Optionee has ceased to provide services and the effective date on which the Optionee ceased to provide services. 

1

 

    (i)  "Employee"  means any person, including officers and directors, employed by the Company or any
Parent or Subsidiary of the Company. The payment of a director's fee by the Company shall not be sufficient to constitute "employment" by the Company. 

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

    (k)  "Fair Market Value"  means, as of any date, the value of a share of the Company's Common Stock
determined as follows: 

    (i)  if
such Common Stock is then quoted on the Nasdaq National Market, its closing price on the Nasdaq National Market on the date of determination as reported in  The Wall Street Journal; 

    (ii) if
such Common Stock is publicly traded and is then listed on a national securities exchange, its closing price on the date of determination on the principal
national securities exchange on which the Common Stock is listed or admitted to trading as reported in The Wall Street Journal; 

    (iii) if
such Common Stock is publicly traded but is not quoted on the Nasdaq National Market nor listed or admitted to trading on a national securities exchange, the
average of the closing bid and asked prices on the date of determination as reported in The Wall Street Journal; or 

    (iv) if
none of the foregoing is applicable, by the Committee in good faith. 

    (l)  "Incentive Stock Option"  means an Option intended to qualify as an incentive stock option within
the meaning of section 422 of the Code. 

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

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

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

    (p)  "Optioned Stock"  the Common Stock subject to an Option. 

    (q)  Optionee"  means an Employee, or Consultant who receives an Option. 

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

    (s)  "Plan"  means this 1999 Stock Option Plan. 

    (t)  "Share"  means a share of the Common Stock, as adjusted in accordance with Section 11 below. 

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

    3.  Stock Subject to the Plan.  Subject to the provisions of the Plan, the maximum aggregate number of
shares which may be optioned and sold under the Plan is 5,500,000 shares of Common Stock. The shares may be authorized but unissued, or reacquired Common Stock. 

    If
an Option should expire or become unexercisable for any reason without having been exercised in full, the unpurchased Shares which were subject thereto shall, unless the Plan shall
have been terminated, become available for future grant under the Plan. 

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    4.  Administration of the Plan.  

    (a)  Initial Plan Procedure.  Prior to the date, if any, upon which the Company becomes subject to the
Exchange Act, the Plan shall be administered by the Board or a committee appointed by the Board. 

    (b)  Plan Procedure after the Date, if any, upon which the Company becomes Subject to the Exchange Act.  

    (i)  Administration with Respect to Directors and Officers.  With respect to grants of Options to
Employees who are also officers or directors of the Company, the Plan shall be administered by (A) the Board if the Board may administer the Plan in compliance with
Rule 16b-3 promulgated under the Exchange Act or any successor thereto ("Rule 16b-3") with respect to a plan intended to qualify thereunder as a discretionary
plan, or (B) a committee designated by the Board to administer the Plan which committee shall b e constituted in such a manner as to permit the Plan to comply with Rule 16b-3
with respect to a plan intended to qualify thereunder as a discretionary plan. Once appointed, such Committee shall continue to serve in its designated capacity until otherwise directed by the Board.
From time to time the Board may increase the size of the Committee and appoint additional members thereof, remove members (with or without cause) and appoint new members in substitution therefor, fill
vacancies, however caused, and remove all members of the Committee and thereafter directly administer the Plan, all to the extent permitted by Rule 16b-3 with respect to a plan
intended to qualify thereunder as a discretionary plan. 

    (ii)  Multiple Administrative Bodies.  If permitted by Rule 16b-3, the Plan may be
administered by different bodies with respect to directors, non-director officers and Employees who are neither directors nor officers. 

    (iii)  Administration With Respect to Consultants and Other Employees.  With respect to grants of Options
to Employees or Consultants who are neither directors nor officers of the Company, the Plan shall be administered by (A) the Board or (B) a committee designated by the Board, which
committee shall be constituted in such a manner as to satisfy the legal requirements relating to the administration of incentive stock option plans, if any, of California corporate and securities
laws, of the Code, and of any applicable stock exchange (the "Applicable Laws"). Once appointed, such Committee shall continue to serve in its designated capacity until otherwise directed by the
Board. From time to time the Board may increase the size of the Committee and appoint additional members thereof, remove members (with or without cause) and appoint new members in substitution
therefor, fill vacancies, however caused, and remove all members of the Committee and thereafter directly administer the Plan, all to the extent permitted by the Applicable Laws. 

    (c)  Powers of the Administrator.  Subject to the provisions of the Plan and, in the case of a Committee,
the specific duties delegated by the Board to such Committee, and subject to the approval of any relevant authorities, including the approval, if required, of any stock exchange upon which the Common
Stock is listed, the Administrator shall have the authority, in its discretion: 

    (i)  to
determine the Fair Market Value of the Common Stock, in accordance with Section 2(k) of the Plan; 

    (ii) to
select the Consultants and Employees to whom Options may from time to time be granted hereunder; 

    (iii) to
determine whether and to what extent Options are granted hereunder; 

3

 

    (iv) to determine the number of shares of Common Stock to be covered by each such award granted hereunder; 

    (v) to
approve forms of agreement for use under the Plan; 

    (vi) to
determine the terms and conditions of any award granted hereunder; 

    (vii) to
determine whether and under what circumstances an Option may be settled in cash under subsection 9(f) instead of Common Stock, 

    (viii)to
reduce the exercise price of any Option to the then current Fair Market Value if the Fair Market Value of the Common Stock covered by such Option has declined
since the date the Option was granted; and 

    (ix) to
construe and interpret the terms of the Plan and awards granted pursuant to the Plan. 

    (d)  Effect of Administrator's Decision.  All decisions, determinations and interpretations of the
Administrator shall be final and binding on all Optionees and any other holders of any Options. 

    5.  Eligibility.  

    (a) Nonstatutory
Stock Options may be granted to Employees and Consultants. Incentive Stock Options may be granted only to Employees. An Employee or Consultant who has
been granted an Option may, if otherwise eligible, be granted additional Options. 

    (b) Each
Option shall be designated in the written option agreement as either an Incentive Stock Option or a Nonstatutory Stock Option. However, notwithstanding such
designations, to the extent that the aggregate Fair Market Value: 

    (i)  of
Shares subject to an Optionee's Incentive Stock Options granted by the Company, any Parent or Subsidiary, which 

    (ii) become
exercisable for the first time during any calendar year (under all plans of the Company or any Parent or Subsidiary) exceeds $100,000, such excess Options
shall be treated as Nonstatutory Stock Options. For purposes of this Section 5(b), Incentive Stock Options shall be taken into account in the order in which they were granted, and the Fair
Market Value of the Shares shall be determined as of the time the Option with respect to such Shares is granted. 

    (c) Whenever
shares of Common Stock are to be issued to Optionee in satisfaction of the rights conferred in accordance herein, the Company shall have the right to
require Optionee to remit to the Company an amount sufficient to satisfy federal, state and local withholding tax requirements prior to the delivery of any certificate or certificates for such shares. 

    (d) The
Plan shall not confer upon any Optionee any right with respect to continuation of employment or consulting relationship with the Company, nor shall it interfere
in any way with his or her right or the Company's right to terminate his or her employment or consulting relationship at any time, with or without cause. 

    (e) Upon
the Company or a successor corporation issuing any class of common equity securities required to be registered under Section 12 of the Exchange Act or
upon the Plan being assumed by a corporation having a class of common equity securities required to be registered 

4

 

under Section 12 of the Exchange Act, the following limitations shall apply to grants of Options to Employees: 

    (i)  No
Employee shall be granted, in any fiscal year of the Company, Options to purchase more than 142,079 Shares, 

    (ii) The
foregoing limitations shall be adjusted proportionately in connection with any change in the Company's capitalization as described in Section 11. 

    (iii) If
an Option is canceled in the same fiscal year of the Company in which it was granted (other than in connection with a transaction described in
Section 11), the canceled Option will be counted against the limit set forth in Section 5(e)(i). For this purpose, if the exercise price of an Option is reduced, the transaction will be
treated as a cancellation of the Option and the grant of a new Option. 

    6.  Term of Plan.  The Plan shall become effective upon the earlier to occur of its adoption by the Board
of directors or its approval by the shareholders of the Company, as described in Section 17 of the Plan. It shall continue in effect for a term often (10) years unless sooner terminated
under Section 13 of the Plan. 

    7.  Term of Option.  The term of each Option shall be the term stated in the Option Agreement; provided,
however, that the term shall be no more than ten (10) years from the date of grant thereof. However, in the case of an Incentive Stock Option granted to an Optionee who, at the time the Option
is granted, owns stock representing more than ten percent (10%) of the voting power of all classes of stock of the Company or any Parent or Subsidiary, the term of the Option shall be five
(5) years from the date of grant thereof or such shorter term as may be provided in the Option Agreement. 

    8.  Option Exercise Price and Consideration.  

    (a) The
per share exercise price for the Shares to be issued pursuant to exercise of an Option shall be such price as is determined by the Board, but shall be subject
to the following: 

    (i)  In
the case of an Incentive Stock Option. 

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

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

    (ii) In
the case of a Nonstatutory Stock Option. 

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

    (B) granted
to any person, the per Share exercise price shall be no less than 85% of the Fair Market Value per Share on the date of grant. 

    (b) The
consideration to be paid for the Shares to be issued upon exercise of an Option, including the method of payment, shall be determined by the Administrator (and,
in the case of an Incentive Stock Option, shall be determined at the time of grant) and may consist entirely of (1) cash, (2) check, (3) other Shares which (x) in the case
of Shares acquired upon exercise of an Option have been owned by the Optionee for more than six months on the date of surrender and 

5

 

(y) have a Fair Market Value on the date of surrender equal to the aggregate exercise price of the Shares as to which said Option shall be exercised, (4) with respect only to purchases
upon exercise of an Option: (i) through a "same day sale" commitment from the Optionee and a broker-dealer that is a member of the National Association of Securities Dealers (a  "NASD Dealer")
whereby the Optionee irrevocably elects to exercise the Option and to sell a portion of the Shares so purchased to pay for the exercise
price, and whereby the NASD Dealer irrevocably commits upon receipt of such Shares to forward the exercise price directly to the Company; or (ii) through a "margin" commitment from the Optionee
and a NASD Dealer whereby the Optionee irrevocably elects to exercise the Option and to pledge the Shares so purchased to the NASD Dealer in a margin account as security for a loan from the NASD
Dealer in the amount of the exercise price, and whereby the NASD Dealer irrevocably commits upon receipt of such Shares to forward the exercise price directly to the Company, (5) by
cancellation of indebtedness of the Company to the Optionee, (6) by tender of a full recourse promissory note having such terms as may be approved by the Administrator and bearing interest at a
rate sufficient to avoid imputation of income under Sections 483 and 1274 of the Code; provided, however, that Optionee who are not employees or
directors of the Company will not be entitled to purchase Shares with a promissory note unless the note is adequately secured by collateral other than the Shares, (7) by waiver of compensation
due or accrued to the Optionee for services rendered, or (8) any combination of the foregoing methods of payment. In making its determination as to the type of consideration to accept, the
Board shall consider if acceptance of such consideration may be reasonably expected to benefit the Company. 

    9.  Exercise of Option.  

    (a)  Procedure for Exercise: Rights as a Shareholder.  Any Option granted hereunder shall be exercisable
at such times and under such conditions as determined by the Board, including performance criteria with respect to the Company and/or the Optionee, and as shall be permissible under the terms of the
Plan. 

    An
Option may not be exercised for a fraction of a Share. 

    An
Option shall be deemed to be exercised when written notice of such exercise has been given to the Company in accordance with the terms of the Option by the person entitled to
exercise the Option and full payment for the Shares with respect to which the Option is exercised has been received by the Company. Full payment may, as authorized by the Board, consist of any
consideration and method of payment allowable under Section 8(b) of the Plan. 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 stock certificate evidencing such 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 Company shall issue (or cause to be issued) such stock certificate promptly upon exercise of the Option. No adjustment will be made for a
dividend or other right for which the record date is prior to the date the stock certificate is issued, except as provided in Section 11 of the Plan. 

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

    (b)  Termination of Employment or Consulting Relationship.  In the event that an Optionee's Continuous
Status as an Employee or Consultant terminates (but not in the event of a change of laws from Employee to Consultant (in which case an Employee's Incentive Stock option shall automatically convert to
a Nonstatutory Stock Option on the ninety-first (91st) day following such change of status) or from Consultant to Employee), other than upon the Optionee's death or disability, the Optionee may
exercise his or her Option, but only within such period of time but not less than thirty (30) days, as is determined by the Administrator, and only to the extent that 

6

 

the Optionee was entitled to exercise it at the date of termination (but in no event later than the expiration of the term of such Option as set forth in the Notice of Grant). If, at the date of
termination, the Optionee is not entitled to exercise his or her entire Option, the Shares covered by the unexercisable portion of the Option shall revert to the Plan. If, after termination, the
Optionee does not exercise his or her Option within the time specified by the Administrator, the Option shall terminate, and the Shares covered by such Option shall revert to the Plan. 

    (c)  Disability of Optionee.  In the event of termination of an Optionee's consulting relationship or
Continuous Status as an Employee as a result of his or her disability, Optionee may, but only with twelve (12) months from the date of such termination (and in no event later than the
expiration date of the term of such Option as set forth in the Option Agreement), exercise the Option to the extent otherwise entitled to exercise it at the date of such termination; provided,
however, that if such disability is not a "disability" as such term is defined in Section 22(c)(3) of the Code, in the case of an
Incentive Stock Option such Incentive Stock Option shall automatically convert to a Nonstatutory Stock Option on the day three months and one day following such termination. To the extent that
Optionee is not entitled to exercise the Option at the date of termination, or if Optionee does not exercise such Option to the extent so entitled within the time specified herein, the Option shall
terminate, and the Shares covered by such Option shall revert to the Plan. 

    (d)  Death of Optionee.  In the event of the death of an Optionee, the Option may be exercised at any
time within twelve (12) months following the date of death (but in no event later than the expiration of the term of such Option as set forth in the Notice of Grant), by the Optionees estate or
by a person who acquired the right to exercise the Option by bequest or inheritance, but only to the extent that the Optionee was entitled to exercise the Option at the date of death. If, at the time
of death, the Optionee was not entitled to exercise his or her entire Option, the Shares covered by the unexercisable portion of the Option shall immediately revert to the Plan. If, after death, the
Optionee s estate or a person who acquired the right to exercise the Option by bequest or inheritance does not exercise the Option within the time specified herein, the Option shall terminate, and the
Shares covered by such Option shall revert to the Plan. 

    (e)  Rule 16b-3.  Options granted to persons subject to Section 16(b) of the
Exchange Act must comply with Rule 16b-3 and shall contain such additional conditions or restrictions as may be required thereunder to qualify for the maximum exemption from
Section 16 of the Exchange Act with respect to Plan transactions. 

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

    (g)  Restrictions on Shares.  At the discretion of the Committee, the Company may reserve to itself
and/or its assignee(s) in the Option agreement a right to repurchase a portion of or all unvested shares held by an Optionee following such Optionee's termination of employment at any time within
ninety (90) days after the later of Optionee's termination date and the date the Optionee purchases Shares under this Plan, for cash and/or cancellation of purchase money indebtedness, at the
Optionee's exercise price. 

    10.  Non-Transferability of Options.  Options 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 Optionee, only by the Optionee. 

7

 

    11.  Adjustments Upon Changes in Capitalization or Merger.  

    (a)  Changes in Capitalization.  In the event that the number of outstanding shares is changed by a stock
dividend, recapitalization, stock split, reverse stock split, subdivision, combination, reclassification or similar change in the capital structure of the Company without consideration, then
(1) the number of Shares reserved for issuance under this Plan, (2) the Share amounts set forth in Section 5(e), (c) the exercise prices of and number of Shares subject to
outstanding Options, and (d) the number of Shares subject to other outstanding Options will be proportionately adjusted, subject to any required action by the Board or the stockholders of the
Company and compliance with applicable securities laws; provided, however, that fractions of a Share will not be issued but will either be replaced by a
cash payment equal to the Fair Market Value of such fraction of a Share or will be rounded up to the nearest whole Share, as determined by the Committee. 

    (b)  Dissolution or Liquidation or Merger.  In the event of (1) a dissolution or liquidation of
the Company, (2) a merger or consolidation in which the Company is not the surviving corporation (other than a merger or consolidation with a wholly-owned subsidiary, a reincorporation of the
Company in a different jurisdiction, or other transaction in which there is no substantial change in the stockholders of the Company or their relative stock holdings and the Options granted under this
Plan are assumed, converted or replaced by the successor corporation, which assumption will be binding on all Optionees), (3) a merger in which the Company is the surviving corporation but
after which the stockholders of the Company immediately prior to such merger (other than any stockholder that merges, or which owns or controls another corporation that merges, with the Company in
such merger) cease to own their shares or other equity interest in the Company, (4) the sale of substantially all of the assets of the Company, or (5) the acquisition, sale, or transfer
of more than 50% of the outstanding shares of the Company by tender offer or similar transaction (each, a "corporate transaction"), any or all
outstanding Options may be assumed, converted or replaced by the successor corporation (if any), which assumption, conversion or replacement will be binding on all Optionees. In the alternative, the
successor corporation may substitute equivalent Options or provide substantially similar consideration to Optionees as was provided to stockholders (after taking into account the existing provisions
of the Options). The successor corporation may also issue, in place of outstanding Shares of the Company held by the Optionees, substantially similar shares or other property subject to repurchase
restrictions no less favorable to the Optionees. In the event such successor corporation (if any) refuses to assume or substitute Options, as provided above, pursuant to a transaction described in
this Section, such Options will expire on such transaction at such time and on such conditions as the Committee will determine. Notwithstanding anything in this Plan to the contrary, the Committee
may, in its sole discretion, provide that the vesting of any or all Options granted pursuant to this Plan will accelerate upon a transaction described in this Section. If the Committee exercises such
discretion with respect to Options, such Options will become exercisable in full prior to the consummation of such event at such time and on such conditions as the Committee determines, and if such
Options are not exercised prior to the consummation of the corporate transaction, they shall terminate at such time as determined by the Committee. Subject to any greater rights granted to Optionees
under the foregoing provisions of this Section, in the event of the occurrence of any corporate transaction described in this Section, any outstanding Options will be treated as provided in the
applicable agreement or plan of merger, consolidation, dissolution, liquidation, or sale of assets. The Company, from time to time, also may substitute or assume outstanding options granted by another
company, whether in connection with an acquisition of such other company or otherwise, by either; (i) granting an Option under this Plan in substitution of such other company's option; or
(ii) assuming such option as if it had been granted under this Plan if the terms of such assumed award could be applied to an Option granted under this Plan. Such substitution or assumption
will be permissible if the holder of the substituted or assumed award would have been eligible to be 

8

 

granted an Option under this Plan if the other company had applied the rules of this Plan to such grant. In the event the Company assumes an option granted by another company, the terms and conditions
of such option will remain unchanged (except that the exercise price and the number and nature of Shares issuable upon exercise of any such option will
be adjusted appropriately pursuant to Section 424(a) of the Code). In the event the Company elects to grant a new Option rather than assuming an existing option, such new Option may be granted
with a similarly adjusted exercise price. 

    12.  Time of Granting Option.  The date of grant of an Option shall, for all purposes, be the date on
which the Administrator makes the determination granting such Option, or such other date as is determined by the Board. Notice of the determination shall be given to each Employee or Consultant to
whom an Option is so granted within a reasonable time after the date of such grant. 

    13.  Amendment and Termination of the Plan.  

    (a)  Amendment and Termination.  The Board may at any time amend, alter, suspend or discontinue the Plan,
but no amendment, alteration, suspension or discontinuation shall be made which would impair the rights of any Optionee under any grant theretofore made, without his or her consent. In addition, to
the extent necessary and desirable to comply with Rule 16b-3 under the Exchange Act or with Section 422 of the Code (or any other applicable law or regulation, including the
requirements of the NASD or an established stock exchange), the Company shall obtain shareholder approval of any Plan amendment in such a manner and to such a degree as required 

    (b)  Effect of Amendment or Termination.  Any such amendment or termination of the Plan shall not affect
Options already granted, and such Options shall remain in full force and effect as if this Plan had not been amended or terminated, unless mutually agreed otherwise between the Optionee and the Board,
which agreement must be in writing and signed by the Optionee and the Company. 

    14.  Conditions Upon Issuance of Shares.  Shares shall not be issued pursuant to the exercise of an
Option unless the exercise of such 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 of 1933, as amended, the Exchange Act the rules and regulations promulgated thereunder, and the requirements of any stock exchange 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 an Option, the Company may require the person exercising such Option 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. 

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

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

    16.  Agreements.  Options shall be evidenced by written agreements in such form as the Board shall
approve from time to time. 

    17.  Shareholder Approval.  Continuance of the Plan shall be subject to approval by the shareholders of
the Company within twelve (12) months before or after the date the Plan is adopted. 

9

 

Such shareholder approval shall be obtained in the degree and manner required under applicable state and federal law and the rules of any stock exchange upon which the Common Stock is listed. 

    18.  Information to Optionees and Purchasers.  The Company shall provide to each Optionee, not less
frequently than annually, copies of annual financial statements. The Company shall also provide such statements to each individual who acquires Shares pursuant to the Plan while such individual owns
such Shares. The Company shall not be required to provide such statements to key employees whose duties in connection with the Company assure their access to equivalent information. 

10

  

 
 

SILICON IMAGE, INC.    
    
    1999 STOCK OPTION PLAN    
    
    STOCK OPTION AGREEMENT    
  

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

I.  NOTICE OF STOCK OPTION GRANT  

	Optionee's Name and Address	

	

 	
 	

 	

	

 	
 	

 	

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

	

 	
 	

Date of Grant	

	

 	
 	

Vesting Commencement Date	

	

 	
 	

Exercise Price Per Share	

	

 	
 	

Total Number of Shares Granted	

	

 	
 	

Total Exercise Price	

	

 	
 	

Type of Option:	
_______ Incentive Stock Option
	

 	
 	

 	
_______ Nonstatutory Stock Option
	

 	
 	

Terms/Expiration Date	

 Vesting Schedule:  

    This Option may be exercised in accordance with the following schedule: 

    25%
of the Shares subject to the Option shall vest on the first anniversary of the Vesting Commencement Date, and 2.08333% of the Shares subject to the Option shall vest each
one-month period thereafter. 

 Termination Period  

    This Option may be exercised for three (3) months after termination of employment or consulting relationship, or such longer period as may be applicable
upon death or disability of Optionee as provided in the Plan, but in no event later than the Term/Expiration Date as provided above. 

II. AGREEMENT  

    1.  Grant of Option.  Silicon Image, Inc., a Delaware corporation (the "Company"), hereby grants
to the Optionee named in the Notice of Grant (the "Optionee"), an option (the "Option") to purchase the total number of shares of Common Stock (the "Shares") set forth in the Notice of Grant, at the
exercise price per share set forth in the Notice of Grant (the "Exercise Price") subject to the terms, definitions and provisions of the 1999 Stock Option Plan (the "Plan") of Silicon Communication 

1

 

Lab, Inc. assumed by the Company, which is incorporated herein by reference. Unless otherwise defined herein, the terms defined in the Plan shall have the same defined meanings in this Option. 

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

    2.  Exercise of Option.  This Option shall be exercisable during its term in accordance with the Vesting
Schedule set out in the Notice of Grant and with the provisions of Section 9 of the Plan as follows: 

    (i)  Right to Exercise,  

    (a) This
Option may not be exercised for a fraction of a Share. 

    (b) In
the event of Optionee's death, disability or other termination of the employment or consulting relationship, the exercisability of the Option is governed by
Sections 6, 7 and 8 below, subject to the limitation contained in subsection 2(i)(c). 

    (c) In
no event may this Option be exercised after the date of expiration of the term of this Option as set forth in the Notice of Grant. 

    (ii)  Method of Exercise.  This Option shall be exercisable by written notice (in the form attached as
Exhibit A) which shall state the election to exercise the Option, the number of Shares in respect of which the Option is being exercised, and such other representations and agreements as to the
holder's investment intent with respect to such shares of Common Stock as may be required by the Company pursuant to the provisions of the Plan. Such written notice shall be signed by the Optionee and
shall be delivered in person or by certified mail to the Secretary of the Company. The written notice shall be accompanied by payment of the Exercise Price. This Option shall be deemed to be exercised
upon receipt by the Company of such written notice accompanied by the Exercise Price. 

    No
Shares will be issued pursuant to the exercise of an Option unless such issuance and such exercise shall comply with all relevant provisions of law and the requirements of any
stock exchange upon which the Shares may then be listed. Assuming such compliance, for income tax purposes the Shares shall be considered transferred to the Optionee on the date on which the Option is
exercised with respect to such Shares. 

    3.  Optionee's Representations.  In the event the Shares purchasable pursuant to the exercise of this
Option have not been registered under the Securities Act of 1933, as amended, at the time this Option is exercised, Optionee shall, if required by the Company, concurrently with the exercise of all or
any portion of this Option, deliver to the Company his or her Investment Representation Statement in the form attached hereto as Exhibit B, and shall read the applicable rules of the
Commissioner of Corporations attached to such Investment Representation Statement. 

    4.  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. 

    (i)  cash;
or 

    (ii) check;
or 

    (iii) surrender
of other shares of Common Stock of the Company which (A) in the case of Shares acquired pursuant to the exercise of a Company option, have been
owned by the Optionee for more than six (6) months on the date of surrender, and (B) have a Fair Market Value on the 

2

 

date of surrender equal to the Exercise Price of the Shares as to which the Option is being exercised, 

    (iv) by
the waiver hereby of compensation due or accrued to Optionee, 

    (v) by
cancellation of indebtedness of the Company to Optionee, 

    (vi) through
a "same-day-sale" commitment, delivered herewith, from Optionee and the NASD Dealer named therein, or 

    (vii) through
a "margin" commitment, delivered herewith from Optionee and the NASD Dealer named therein. 

    5.  Restrictions on Exercise.  This Option may not be exercised until such time as the Plan has been
approved by the shareholders of the Company, or if the issuance of such Shares upon such exercise or the method of payment of consideration for such shares would constitute a violation of any
applicable federal or state securities or other law or regulation, including any rule under Part 207 of Title 12 of the Code of Federal Regulations ("Regulation G") as promulgated by the
Federal Reserve Board, As a condition to the exercise of this Option, the Company may require Optionee to make any representation and warranty to the Company as may be required by any applicable law
or regulation. 

    6.  Termination of Relationship.  In the event an Optionee's Continuous Status as an Employee or
Consultant terminates, Optionee may, to the extent otherwise so entitled at the date of such termination (the "Termination Date"), exercise this Option during the Termination Period set out in the
Notice of Grant. To the extent that Optionee was not entitled to exercise this Option at the date of such termination, or if Optionee does not exercise this Option within the time specified herein,
the Option shall terminate. 

    7.  Disability of Optionee.  Notwithstanding the provisions of Section 6 above, in the event of
termination of an Optionee's consulting relationship or Continuous Status as an Employee as a result of his or her disability, Optionee may, but only within twelve (12) months from the date of
such termination (and in no event later than the expiration date of the term of such Option as set forth in the Option Agreement), exercise the Option to the extent otherwise entitled to exercise it
at the date of such termination, provided, however, that if such disability is not a "disability" as such term is defined in Section 22(e)(3) of the Code, in the case of an Incentive Stock
Option such Incentive Stock Option shall automatically convert to a Nonstatutory Stock Option on the day three months and one day following such termination. To the extent that Optionee was not
entitled to exercise the Option at the date of termination, or if Optionee does not exercise such Option to the extent so entitled within the time specified herein, the Option shall terminate, and the
Shares covered by such Option shall revert to the Plan. 

    8.  Death of Optionee.  In the event of termination of Optionee's Continuous Status as an Employee or
Consultant as a result of the death of Optionee, the Option may be exercised at any time within twelve (12) months following the date of death (but in no event later than the date of expiration
of the term of this Option as set forth in Section 10 below), by Optionee's estate or by a person who acquired the right to exercise the Option by bequest or inheritance, but only to the extent
the Optionee could exercise the Option at the date of death. 

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

    10.  Term of Option.  This Option may be exercised only within the term set out in the Notice of Grant,
and may be exercised during such term only in accordance with the Plan and the terms of this Option. The limitations set out in Section 7 of the Plan regarding Options designated as Incentive 

3

 

Stock Options and Options granted to more than ten percent (10%) shareholders shall apply to this Option. 

    11.  Taxation on Exercise of Option.  Optionee understands that, upon exercising a Nonstatutory Option,
he or she will recognize income for tax purposes in an amount equal to the excess of the then Fair Market Value of the Shares over the exercise price. However, the timing of this income recognition
may be deferred for up to six months, if Optionee is subject to Section 16 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). If the Optionee is an Employee, the Company
will be required to withhold from Optionee's compensation, or collect from Optionee and pay to the applicable taxing authorities an amount equal to a percentage of this compensation income.
Additionally, the Optionee may at some point be required to satisfy tax withholding obligations with respect to the disqualifying disposition of an Incentive Stock Option. The Optionee shall satisfy
his or her tax withholding obligation arising upon the exercise of this Option out of Optionee's compensation or by payment to the Company. 

    12.  Tax Consequences.  Set forth below is a brief summary as of the date of this Option of some of the
federal and State of California tax consequences of exercise of this Option and disposition of the Shares. THIS SUMMARY IS NECESSARILY INCOMPLETE, AND THE TAX LAWS AND REGULATIONS ARE SUBJECT TO
CHANGE. OPTIONEE SHOULD CONSULT A TAX ADVISER BEFORE EXERCISING THIS OPTION OR DISPOSING OF THE SHARES. 

    (i)  Exercise of ISO.  If this Option qualifies as an ISO, there will be no regular federal income tax
liability or State of California income tax liability upon the exercise of the Option, although the excess, if any,
of the Fair Market Value of the Shares on the date of exercise over the Exercise Price will be treated as an adjustment to the alternative minimum tax for federal tax purposes and may subject the
Optionee to the alternative minimum tax in the year of exercise. 

    (ii)  Exercise of ISO Following Disability.  If the Optionee's Continuous Status as an Employee or
Consultant terminates as a result of disability that is not total and permanent disability as defined in Section 22(e)(3) of the Code, to the extent permitted on the date of termination, the
Optionee must exercise an ISO within 90 days of such termination for the ISO to be qualified as an ISO. 

    (iii)  Exercise of Nonstatutory Stock Option.  There may be a regular federal income tax liability and
State of California income tax liability upon the exercise of a Nonstatutory Stock Option. The Optionee will be treated as having received compensation income (taxable at ordinary income tax rates)
equal to the excess, if any, of the Fair Market Value of the Shares on the date of exercise over the Exercise Price. If Optionee is an Employee or a former Employee, the Company will be required to
withhold from Optionee's compensation or collect from Optionee and pay to the applicable taxing authorities an amount in cash equal to a percentage of this compensation income at the time of exercise,
and may refuse to honor the exercise and refuse to deliver Shares if such withholding amounts are not delivered at the time of exercise. 

    (iv)  Disposition of Shares.  In the case of an NSO, if Shares are held for at least one year, any gain
realized on disposition of the Shares will be treated as long-term capital gain for federal and State of California income tax purposes. In the case of an ISO, if Shares transferred
pursuant to the Option are held for at least one year after exercise and are disposed of at least two years after the Date of Grant, any gain realized on disposition of the Shares will also be treated
as long-term capital gain for federal and State of California income tax purposes. If Shares purchased under an ISO are disposed of within such one-year period or within two
years after the Date of Grant, any gain realized on such disposition will be treated as compensation income (taxable at ordinary income rates) to the extent of the difference between the Exercise
Price and the lesser of (1) the Fair Market Value of the Shares on the date of exercise, or (2) the sale price of be Shares. 

4

 

    (v)  Notice of Disqualifying Disposition of ISO Shares.  If the Option granted to Optionee herein is an
ISO, and if Optionee sells or otherwise disposes of any of the Shares acquired pursuant to the ISO on or before the later of (1) the date two years after the Date of Grant, or (2) the
date one year after the date of exercise, the Optionee shall immediately notify the Company in writing of such disposition. Optionee agrees that Optionee may be subject to income tax withholding by
the Company on the compensation income recognized by the Optionee. 

    13.  INTENTIONALLY LEFT BLANK  

    14.  "Market Stand-Off' Agreement.  Optionee, if requested by the Company and an underwriter of Common
Stock (or other securities) of the Company, agrees not to sell or otherwise transfer or dispose of any Common Stock (or other securities) of the Company held by Optionee during the period requested by
the managing underwriter following the effective date of a registration statement of the Company filed under the Securities Act of 1933, as amended, provided that all officers and directors of the
Company are required to enter into similar agreements. Such agreement shall be in writing in a form satisfactory to the Company and such underwriter. The Company may impose stop-transfer
instructions with respect to the shares (or other securities) subject to the foregoing restriction until the end of such period. 

    15.  Binding Effect.  This Agreement shall inure to the benefit of the Company and its successors and
assigns and, subject to the restrictions on transfer set forth herein, be binding upon Optionee, his permitted transferees, heirs, legatees, executors, administrators and legal successors, who shall
hold the Shares subject to the terms hereof. 

    16.  Severability.  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 and effect without being impaired or invalidated in any way and shall be construed in accordance with
the purposes and tenor and effect of this Agreement. 

    17.  Entire Agreement Governing Law.  The Plan is incorporated herein by reference to the Option
Agreement. The Plan and this Option Agreement constitute the entire agreement of the parties with respect to the subject matter hereof and supersede in their entirety all prior undertakings and
agreements of the Company and Optionee with respect to the subject matter hereof, and may not be modified adversely to the Optionee's interest except by means of a writing signed by the Company and
Optionee. This agreement is governed by the laws of the State or California except for that body of law pertaining to conflict of laws. 

	 	SILICON IMAGE, INC.

a Delaware corporation
	

 	

By:	

___________________________________________

[Name]

    OPTIONEE
ACKNOWLEDGES AND AGREES THAT THE VESTING OF SHARES PURSUANT TO THE OPTION HEREOF IS EARNED ONLY BY CONTINUING CONSULTANCY OR EMPLOYMENT AT THE WILL OF THE COMPANY (NOT
THROUGH THE ACT OF BEING
HIRED, BEING GRANTED THIS OPTION OR ACQUIRING SHAPES HEREUNDER). OPTIONEE FURTHER ACKNOWLEDGES AND AGREES THAT NOTHING IN THIS AGREEMENT, NOR IN THE COMPANY'S STOCK OPTION PLAN WHICH IS INCORPORATED
HEREIN BY REFERENCE, SHALL CONFER UPON OPTIONEE ANY RIGHT WITH RESPECT TO CONTINUATION OF EMPLOYMENT OR CONSULTANCY BY THE COMPANY, NOR SHALL IT INTERFERE IN ANY WAY WITH OPTIONEE'S RIGHT OR THE
COMPANY'S 

5

 

RIGHT TO TERMINATE OPTIONEE'S EMPLOYMENT OR CONSULTANCY AT ANY TIME, WITH OR WITHOUT CAUSE. 

    Optionee
acknowledges receipt of a copy of the Plan and represents that he is familiar with the terms and provisions thereof, hereby accepts this Option subject to all of the terms
and provisions thereof. Optionee has reviewed the Plan and this Option in their entirety, has had an opportunity to obtain the advice of counsel prior to executing this Option and fully understands
all provisions of the Option. Optionee hereby Agrees to accept as binding, conclusive and final all decisions or interpretations of the Administrator upon any questions arising under the Plan or this
Option. Optionee further agrees to notify the Company upon any change in the residence address indicated below. 

	Dated: ____________________________________	 	Signed: ___________________________________________
	

 	
 	

Residence Address:
	

 	
 	

	

 	
 	

6

 
 
 

CONSENT OF SPOUSE    
  

    I,            , spouse of the Optionee who executed the foregoing Agreement, hereby agree that my spouse'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. 

	Dated:                   , 200 	 	 
	

 	
 	

7

 
 
 

NOTICE OF EXERCISE OF STOCK OPTION    
  

SILICON
IMAGE,INC.

1060 East Arques Avenue

Sunnyvale, California, 94086 

Attention:
Secretary 

    The
undersigned hereby elects to exercise the option indicated below with respect to the number of shares of Common Stock of            (the "Company") set forth: 

	 	Option Grant Date: ___________________________________________	 	 
	

 	

Type of Option:	
________ Incentive Stock Option	
 	

 
	

 	

 	
________ Nonstatutory Stock Option	
 	

 
	

 	

Number of Shares Being Exercised: ____________________________ Shares	
 	

 
	

 	

Exercise Price Per Shares: $___________________________________________	
 	

 
	

 	

Total Exercise Price: $________________________________________________	
 	

 
	

 	

Method of Payment: (  ) Cash, (  ) Check or (  ) Other: ____________________________

    Enclosed
herewith is payment in full of the total exercise price, a copy of the Option Agreement and an executed copy of an Investment Representation Statement (Exhibit B to
the Option Agreement). 

    My
exact name, address and social security number for purposes of the stock certificates to be issued and the shareholder list of the Company are: 

	 	 	Name: ___________________________________________	 	 
	

 	
 	

Address: ___________________________________________	
 	

 
	

 	
 	

              ___________________________________________	
 	

 
	

 	
 	

Social Security Number: ____________________________________	
 	

 

	

 	

 	

Sincerely,
	

Dated: ____________________________________	
 	
____________________________________________________

(Employee's Signature)
	

 	
 	
____________________________________________________

(Employee's Printed Name)

8

QuickLinks

EXHIBIT 10.37

SILICON IMAGE, INC. 1999 STOCK OPTION PLAN STOCK OPTION AGREEMENT

CONSENT OF SPOUSE

NOTICE OF EXERCISE OF STOCK OPTION

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