Document:

Exhibit 10.4

 

ADDENDUM

TO

STOCK OPTION AGREEMENT

 

The following provisions
are hereby incorporated into, and are hereby made a part of, that certain Stock
Option Agreement (the “Option Agreement”) by and between Silicon Laboratories
Inc. (the “Corporation”) and                    
(“Optionee”) evidencing the stock option (the “Option”) granted on                 to
Optionee under the terms of the Corporation’s 2000 Stock Incentive Plan, and
such provisions shall be effective immediately. 
All capitalized terms in this Addendum, to the extent not otherwise
defined herein, shall have the meanings assigned to them in the Option
Agreement.

 

INVOLUNTARY TERMINATION

FOLLOWING CHANGE IN CONTROL

 

1.               To the
extent the Option does not accelerate, in connection with a Change in Control,
the Option shall continue, over Optionee’s period of Service after the Change
in Control, to become exercisable for the Option Shares in one or more
installments in accordance with the provisions of the Option Agreement.  However, immediately upon an Involuntary
Termination of Optionee’s Service within eighteen (18) months following such
Change in Control, the Option (or any replacement grant), to the extent
outstanding at the time but not otherwise fully exercisable, shall
automatically accelerate so that the Option shall become immediately
exercisable for all the Option Shares at the time subject to the Option and may
be exercised for any or all of those shares as fully vested shares of Common
Stock.

 

2.               The Option
as accelerated under Paragraph 1 shall remain so exercisable until the earlier
of (i) the Expiration Date or (ii) the expiration of the one (1)-year period
measured from the effective date of Optionee’s Involuntary Termination.

 

3.               For purposes
of this Addendum, an Involuntary Termination
shall mean the termination of Optionee’s Service by reason of:

 

(A)      Optionee’s involuntary dismissal or
discharge by the Corporation for reasons other than Misconduct, or

 

(B)        Optionee’s voluntary resignation
following (A) a change in Optionee’s position with the Corporation (or Parent
or Subsidiary employing Optionee) which materially reduces Optionee’s level of
responsibility, (B) a reduction in Optionee’s level of compensation (including
base salary, fringe benefits and target bonus under any performance based bonus
or incentive programs) by more than fifteen percent (15%) or (C) a relocation
of Optionee’s place of employment by more than fifty (50) miles, provided
and only if such change, reduction or relocation is effected by the Corporation
without Optionee’s consent.

 

4.               The
provisions of Paragraph 2 of this Addendum shall govern the period for which
the Option is to remain exercisable following the Involuntary Termination of
Optionee’s Service within eighteen (18) months after the Change in Control and
shall supersede any provisions to the contrary in Paragraph 5 of the Option
Agreement.Exhibit
10.5

 

SILICON
LABORATORIES INC.

STOCK ISSUANCE AGREEMENT

 

AGREEMENT made
this                
day of                    
20    , by and between Silicon Laboratories Inc., a
Delaware corporation, and                                                                    ,
a Participant in the Corporation’s 2000 Stock Incentive Plan.

 

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

 

A.                                   PURCHASE OF SHARES

 

1.                                       Purchase.  Participant hereby purchases                        
shares of Common Stock (the “Purchased Shares”) pursuant to the provisions of
the Stock Issuance Program at the purchase price of $                
per share (the “Purchase Price”).

 

2.                                       Payment.  Concurrently with the delivery of this
Agreement to the Corporation, 
Participant shall pay the Purchase Price for the Purchased Shares in
cash or check payable to the Corporation and shall deliver a duly-executed
blank Assignment Separate from Certificate (in the form attached hereto as
Exhibit I) with respect to the Purchased Shares.

 

3.                                       Stockholder Rights.  Until such time as the Corporation exercises
the Repurchase Right, Participant (or any successor in interest) shall have all
the rights of a stockholder (including voting, dividend and liquidation rights)
with respect to the Purchased Shares, subject, however, to the transfer
restrictions of this Agreement.

 

4.                                       Escrow. 
The Corporation shall have the right to hold the Purchased Shares in
escrow until those shares have vested in accordance with the Vesting Schedule.

 

5.                                       Compliance with Law.  Under no circumstances shall shares of Common
Stock or other assets be issued or delivered to Participant pursuant to the
provisions of this Agreement unless, in the opinion of counsel for the
Corporation or its successors, there shall have been compliance with all
applicable requirements of Federal and state securities laws, all applicable
listing requirements of any stock exchange (or the Nasdaq National Market, if
applicable) on which the Common Stock is at the time listed for trading and all
other requirements of law or of any regulatory bodies having jurisdiction over
such issuance and delivery.

 

 

B.                                     TRANSFER RESTRICTIONS

 

1.                                       Restriction on Transfer.  Except for any Permitted Transfer,
Participant shall not transfer, assign, encumber or otherwise dispose of any of
the Purchased Shares which are subject to the Repurchase Right.

 

2.                                       Restrictive Legend.  The stock certificate for the Purchased
Shares shall be endorsed with the following restrictive legend:

 

“The shares
represented by this certificate are unvested and subject to certain repurchase
rights granted to the Corporation and accordingly may not be sold, assigned,
transferred, encumbered, or in any manner disposed of except in conformity with
the terms of a written agreement dated                       
between the Corporation and the registered holder of the shares (or the
predecessor in interest to the shares). 
A copy of such agreement is maintained at the Corporation’s principal
corporate offices.”

 

3.                                       Transferee Obligations.  Each person (other than the Corporation) to
whom the Purchased Shares are transferred by means of a Permitted Transfer
must, as a condition precedent to the validity of such transfer, acknowledge in
writing to the Corporation that such person is bound by the provisions of this
Agreement and that the transferred shares are subject to the Repurchase Right
to the same extent such shares would be so subject if retained by Participant.

 

C.                                     REPURCHASE RIGHT

 

1.                                       Grant. 
The Corporation is hereby granted the right (the “Repurchase Right”),
exercisable at any time during the ninety (90)-day period following the date
Participant ceases for any reason to remain in Service, to repurchase at the
Purchase Price all or any portion of the Purchased Shares in which Participant
is not, at the time of his or her cessation of Service, vested in accordance
with the Vesting Schedule or the provisions of Paragraph C.5 of this
Agreement (such shares to be hereinafter referred to as the “Unvested Shares”).

 

2.                                       Exercise of the Repurchase Right.  The Repurchase Right shall be exercisable by
written notice delivered to each Owner of the Unvested Shares prior to the
expiration of the ninety (90)-day exercise period.  The notice shall indicate the number of
Unvested Shares to be repurchased and the date on which the repurchase is to be
effected, such date to be not more than thirty (30) days after the date of such
notice.  The certificates representing
the Unvested Shares to be repurchased shall be delivered to the Corporation on
or before the close of business on the date specified for the repurchase.  Concurrently with the receipt of such stock
certificates, the Corporation shall pay to Owner, in cash or cash equivalent
(including the cancellation of any purchase-money indebtedness), an amount
equal to the Purchase Price previously paid for the Unvested Shares to be
repurchased from Owner.

 

3.                                       Termination of the Repurchase Right.  The Repurchase Right shall terminate with
respect to any Unvested Shares for which it is not timely exercised under
Paragraph C.2.  In addition, the
Repurchase Right shall terminate and cease to be exercisable with respect to
any and all Purchased Shares in which Participant vests in accordance with the
following Vesting Schedule:

 

2

 

Upon Participant’s completion of each year of
Service over the               (             )-year
period measured from                                   ,
200   , Participant shall acquire a vested interest in, and the
Repurchase Right shall lapse with respect to,       percent

 

(        %)
of the Purchased Shares.

 

4.                                       Recapitalization.  Any new, substituted or additional securities
or other property (including cash paid other than as a regular cash dividend)
which is by reason of any Recapitalization distributed with respect to the
Purchased Shares shall be immediately subject to the Repurchase Right and any
escrow requirements hereunder, but only to the extent the Purchased Shares are
at the time covered by such right or escrow requirements.  Appropriate adjustments to reflect such
distribution shall be made to the number and/or class of securities subject to
this Agreement and to the price per share to be paid upon the exercise of the
Repurchase Right in order to reflect the effect of any such Recapitalization
upon the Corporation’s capital structure; provided, however, that the
aggregate purchase price shall remain the same.

 

5.                                       Change in Control.

 

(a)                                  Immediately
prior to the consummation of any Change in Control, the Repurchase Right shall
automatically lapse in its entirety and the Purchased Shares shall vest in
full, except to the extent the Repurchase Right is assigned to the successor
corporation (or parent thereof) or otherwise continues in full force and effect
pursuant to the terms of the Change in Control.

 

(b)                                 To
the extent the Repurchase Right remains in effect following a Change in
Control, such right shall apply to the new capital stock or other property
(including any cash payments) received in exchange for the Purchased Shares in
consummation of the Change in Control, but only to the extent the Purchased
Shares are at the time covered by such right. 
Appropriate adjustments shall be made to the price per share payable
upon exercise of the Repurchase Right to reflect the effect of the Change in
Control upon the Corporation’s capital structure; provided, however,
that the aggregate purchase price shall remain the same.  Any capital stock or other property
(including cash payments) issued or distributed with respect to the Purchased
Shares may be held in escrow.

 

(c)                                  The
Repurchase Right may also be subject to termination in whole or in part on an
accelerated basis, and the Purchased Shares subject to immediate vesting, in
accordance with the terms of any special Addendum attached to this Agreement.

 

D.                                    SPECIAL TAX ELECTION

 

1.                                       Section 83(b) Election.  Under Code Section 83, the excess of the
fair market value of the Purchased Shares on the date any forfeiture
restrictions applicable to such shares lapse over the Purchase Price paid for
such shares will be reportable as ordinary income on the lapse date.  For this purpose, the term “forfeiture
restrictions” includes the right of the Corporation to repurchase the Purchased
Shares pursuant to the Repurchase Right. 
Participant may elect under Code Section 83(b) to be taxed at the
time the Purchased Shares are acquired, rather than when and as such Purchased
Shares cease to be subject to such forfeiture restrictions.  Such election must be filed with the Internal
Revenue Service within thirty (30) days after the date of this Agreement.  Even if the fair market value of the
Purchased Shares on the date of this Agreement equals the Purchase Price paid
(and thus no tax is payable), the election must be made to avoid adverse tax
consequences in the future.  THE FORM FOR MAKING THIS ELECTION IS ATTACHED AS
EXHIBIT II HERETO.  PARTICIPANT UNDERSTANDS THAT FAILURE TO MAKE THIS
FILING WITHIN THE APPLICABLE THIRTY (30)-DAY PERIOD WILL RESULT IN THE
RECOGNITION OF ORDINARY INCOME AS THE FORFEITURE RESTRICTIONS LAPSE.

 

3

 

2.                                       FILING RESPONSIBILITY.  PARTICIPANT ACKNOWLEDGES THAT IT IS
PARTICIPANT’S SOLE RESPONSIBILITY, AND NOT THE CORPORATION’S, TO FILE A TIMELY
ELECTION UNDER CODE SECTION 83(b), EVEN IF PARTICIPANT REQUESTS THE
CORPORATION OR ITS REPRESENTATIVES TO MAKE THIS FILING ON HIS OR HER BEHALF.

 

E.                                      GENERAL PROVISIONS

 

1.                                       Assignment.  The Corporation may assign the Repurchase
Right to any person or entity selected by the Board, including (without
limitation) one or more stockholders of the Corporation.

 

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

 

3.                                       Notices.  Any notice required to be given under this
Agreement shall be in writing and shall be deemed effective upon personal
delivery or upon deposit in the U.S. mail, registered or certified, postage
prepaid and properly addressed to the party entitled to such notice at the
address indicated below such party’s signature line on this Agreement or at
such other address as such party may designate by ten (10) days advance written
notice under this paragraph to all other parties to this Agreement.

 

4.                                       No Waiver.  The failure of the Corporation in any
instance to exercise the Repurchase Right shall not constitute a waiver of any
other repurchase rights that may subsequently arise under the provisions of
this Agreement or any other agreement between the Corporation and
Participant.  No waiver of any breach or
condition of this Agreement shall be deemed to be a waiver of any other or
subsequent breach or condition, whether of like or different nature.

 

4

 

5.                                       Cancellation of Shares.  If the Corporation shall make available, at
the time and place and in the amount and form provided in this Agreement, the
consideration for the Purchased Shares to be repurchased in accordance with the
provisions of this Agreement, then from and after such time, the person from
whom such shares are to be repurchased shall no longer have any rights as a
holder of such shares (other than the right to receive payment of such
consideration in accordance with this Agreement).  Such shares shall be deemed purchased in
accordance with the applicable provisions hereof, and the Corporation shall be
deemed the owner and holder of such shares, whether or not the certificates
therefor have been delivered as required by this Agreement.

 

6.                                       Participant Undertaking.  Participant hereby agrees to take whatever
additional action and execute whatever additional documents the Corporation may
deem necessary or advisable in order to carry out or effect one or more of the
obligations or restrictions imposed on either Participant or the Purchased
Shares pursuant to the provisions of this Agreement.

 

7.                                       Agreement is Entire Contract.  This Agreement constitutes the entire contract
between the parties hereto with regard to the subject matter hereof.  This Agreement is made pursuant to the
provisions of the Plan and shall in all respects be construed in conformity
with the terms of the Plan.

 

8.                                       Governing Law.  This Agreement shall be governed by, and
construed in accordance with, the laws of the State of Texas without resort to
that State’s conflict-of-laws rules.

 

9.                                       Successors and Assigns.  The provisions of this Agreement shall inure
to the benefit of, and be binding upon, the Corporation and its successors and
assigns and upon Participant, Participant’s assigns and the legal
representatives, heirs and legatees of Participant’s estate, whether or not any
such person shall have become a party to this Agreement and have agreed in
writing to join herein and be bound by the terms hereof.

 

5

 

IN WITNESS WHEREOF,
the parties have executed this Agreement on the day and year first indicated
above.

 

 

	
   

  	
  SILICON LABORATORIES INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Address:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  PARTICIPANT

  
	
   

  	
   

  	
   

  
	
   

  	
  Address:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

6

 

EXHIBIT
I

 

ASSIGNMENT
SEPARATE FROM CERTIFICATE

 

FOR VALUE RECEIVED                                    
hereby sell(s), assign(s) and transfer(s) unto Silicon Laboratories Inc. (the “Corporation”),
                               (          )
shares of the Common Stock of the Corporation standing in his or her name on
the books of the Corporation represented by Certificate No.                    
herewith and do(es) hereby irrevocably constitute and appoint                                   
Attorney to transfer the said stock on the books of the Corporation with full
power of substitution in the premises.

 

	
  Dated:

  	
   

  	
   

  
	
   

  
	
   

  	
  Signature

  	
   

  
					

 

 

Instruction:  Please do not fill in any blanks other than
the signature line.  Please sign exactly
as you would like your name to appear on the issued stock certificate.  The purpose of this assignment is to enable
the Corporation to exercise the Repurchase Right without requiring additional
signatures on the part of Participant.

 

 

EXHIBIT
II

 

SECTION 83(b)
TAX ELECTION

 

This statement is being made under Section 83(b) of the Internal
Revenue Code, pursuant to Treas. Reg. Section 1.83-2.

 

(1)                                   The
taxpayer who performed the services is:

 

Name:

Address:

Taxpayer Ident. No.:

 

(2)                                   The
property with respect to which the election is being made is                     
shares of the common stock of Silicon Laboratories Inc.

 

(3)                                   The
property was issued on                                                    .

 

(4)                                   The
taxable year in which the election is being made is the calendar year                        .

 

(5)                                   The
property is subject to a repurchase right pursuant to which the issuer has the
right to acquire the property at the original purchase price if for any reason
taxpayer’s employment with the issuer is terminated.  The issuer’s repurchase right lapses in a
series of installments over a                               (               )-year
period ending on                                                          .

 

(6)                                   The
fair market value at the time of transfer (determined without regard to any
restriction other than a restriction which by its terms will never lapse) is $                             
per share.

 

(7)                                   The
amount paid for such property is $                               
per share.

 

(8)                                   A
copy of this statement was furnished to Silicon Laboratories Inc. for whom
taxpayer rendered the services underlying the transfer of property.

 

(9)                                   This
statement is executed on                                                         .

 

 

	
   

  	
   

  	
   

  
	
  Spouse (if any)

  	
   

  	
  Taxpayer

  

 

This election must be filed with the Internal
Revenue Service Center with which taxpayer files his or her Federal income tax
returns and must be made within thirty (30) days after the execution date of
the Stock Issuance Agreement.  This
filing should be made by registered or certified mail, return receipt
requested.  Participant must retain two
(2) copies of the completed form for filing with his or her Federal and state
tax returns for the current tax year and an additional copy for his or her
records.

 

 

APPENDIX

 

The following definitions shall be in effect
under the Agreement:

 

A.                                   Agreement shall mean this Stock
Issuance Agreement.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

G.                                     Owner shall mean Participant and all
subsequent holders of the Purchased Shares who derive their chain of ownership
through a Permitted Transfer from Participant.

 

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

 

A-1

 

I.                                         Participant shall mean the person to
whom the Purchased Shares are issued under the Stock Issuance Program.

 

J.                                        Permitted Transfer shall mean (i) a
gratuitous transfer of the Purchased Shares, provided and only if
Participant obtains the Corporation’s prior written consent to such transfer,
(ii) a transfer of title to the Purchased Shares effected pursuant to
Participant’s will or the laws of intestate succession following Participant’s
death or (iii) a transfer to the Corporation in pledge as security for any
purchase-money indebtedness incurred by Participant in connection with the acquisition
of the Purchased Shares.

 

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

 

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

 

M.                                 Purchase Price shall have the meaning
assigned to such term in Paragraph A.1.

 

N.                                    Purchased Shares shall have the meaning
assigned to such term in Paragraph A.1.

 

O.                                    Recapitalization shall mean any stock
split, stock dividend, recapitalization, combination of shares, exchange of
shares or other change affecting the Corporation’s outstanding Common Stock as
a class without the Corporation’s receipt of consideration.

 

P.                                      Repurchase Right shall mean the right
granted to the Corporation in accordance with Article C.

 

Q.                                    Service shall mean the Participant’s
performance of services for the Corporation (or any Parent or Subsidiary) in
the capacity of an employee, subject to the control and direction of the
employer entity as to both the work to be performed and the manner and method
of performance, a non-employee member of the board of directors or a
consultant.

 

R.                                     Stock Issuance Program shall mean the
Stock Issuance Program under the Plan.

 

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

 

T.                                     Vesting Schedule shall mean the
vesting schedule specified in Paragraph C.3, subject to acceleration (if
any) in connection with a Change in Control.

 

U.                                    Unvested Shares shall have the meaning
assigned to such term in Paragraph C.1.

 

A-2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00078-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00078-of-00352.parquet"}]]