Document:

Cirrus Logic, Inc.

 

EXHIBIT 10.9

CIRRUS LOGIC, INC.

2002 NON-QUALIFIED STOCK OPTION PLAN

     1. Purposes of the Plan. The purposes of this Non-Qualified Stock Option
Plan are to attract and retain the best available personnel, to provide
additional incentive to Employees and Consultants and to promote the success of
the Company’s business.

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

          (a) “Administrator” means the Board or the Committee.

          (b) “Affiliate” and “Associate” shall have the respective meanings
ascribed to such terms in Rule 12b-2 promulgated under the Exchange Act.

          (c) “Applicable Laws” means the legal requirements relating to the
administration of stock incentive plans, if any, under applicable provisions of
federal securities laws, state corporate and securities laws, the Code, the
rules of any applicable stock exchange or national market system, and the rules
of any foreign jurisdiction applicable to Awards granted to residents therein.

          (d) “Award” means the grant of an Option under the Plan.

          (e) “Award Agreement” means the written agreement evidencing the grant of
an Award executed by the Company and the Grantee, including any amendments
thereto.

          (f) “Board” means the Board of Directors of the Company.

          (g) “Code” means the Internal Revenue Code of 1986, as amended.

          (h) “Committee” means the Compensation Committee of the Board.

          (i) “Common Stock” means the common stock of the Company.

          (j) “Company” means Cirrus Logic, Inc., a Delaware corporation.

          (k) “Consultant” means any person (other than an Employee or a Director)
who is engaged by the Company or any Related Entity to render consulting or
advisory services to the Company or such Related Entity.

          (l) “Continuous Service” means that the provision of services to the
Company or a Related Entity in any capacity of Employee or Consultant, is not
interrupted or terminated. Continuous Service shall not be considered
interrupted in the case of (i) any approved leave of absence, (ii) transfers
among the Company, any Related Entity, or any successor, in any capacity of
Employee or Consultant, or (iii) any change in status as long as the individual
remains in the service of the Company or a Related Entity in any capacity of
Employee or Consultant (except as

 

 

otherwise provided in the Award Agreement). An approved leave of absence
shall include sick leave, military leave, or any other authorized personal
leave.

          (m) “Corporate Transaction” means any of the following transactions:

               (i) a merger or consolidation in which the Company is not the surviving
entity, except for a transaction the principal purpose of which is to change
the state in which the Company is incorporated;

               (ii) the sale, transfer or other disposition of all or substantially all
of the assets of the Company (including the capital stock of the Company’s
subsidiary corporations); or

               (iii) any reverse merger in which the Company is the surviving entity but
in which securities possessing more than fifty percent (50%) of the total
combined voting power of the Company’s outstanding securities are transferred
to a person or persons different from those who held such securities
immediately prior to such merger.

          (n) “Director” means a member of the Board.

          (o) “Disability” means a Grantee would qualify for benefit payments under
the long-term disability policy of the Company or the Related Entity to which
the Grantee provides services regardless of whether the Grantee is covered by
such policy. If the Company or the Related Entity to which the Grantee
provides service does not have a long-term disability plan in place,
“Disability” means that a Grantee is permanently unable to carry out the
responsibilities and functions of the position held by the Grantee by reason of
any medically determinable physical or mental impairment. A Grantee will not
be considered to have incurred a Disability unless he or she furnishes proof of
such impairment sufficient to satisfy the Administrator in its discretion.

          (p) “Employee” means any person, other than an Officer or Director, who is
an employee of the Company or any Related Entity.

          (q) “Exchange Act” means the Securities Exchange Act of 1934, as amended.

          (r) “Fair Market Value” means, that as of any date, the value of Common
Stock shall be the closing price for a Share for the market trading day on such
date (or, if no closing price was reported on that date, on the last trading
date on which a closing price was reported) on the stock exchange determined by
the Administrator to be the primary market for the Common Stock or the Nasdaq
National Market, whichever is applicable, or if the Common Stock is not traded
on any exchange or national market system, the average of the closing bid and
ask prices of a Share on the Nasdaq Small Cap Market on such date (or, if no
closing prices were reported on that date, on the last trading date on which
closing prices were reported), in each case, as reported in The Wall Street
Journal or such other source as the Administrator deems reliable.

          (s) “Grantee” means an Employee or Consultant who receives an Award
pursuant to an Award Agreement under the Plan.

2

 

          (t) “Immediate Family” means any child, stepchild, grandchild, parent,
stepparent, grandparent, spouse, former spouse, sibling, niece, nephew,
mother-in-law, father-in-law, son-in law, daughter-in-law, brother-in-law, or
sister-in-law, including adoptive relationships, any person sharing the
Grantee’s household (other than a tenant or employee), a trust in which these
persons have more than fifty percent (50%) of the beneficial interest, a
foundation in which these persons (or the Grantee) control the management of
assets, and any other entity in which these persons (or the Grantee) own more
than fifty percent (50%) of the voting interests.

          (u) “Incentive Stock Option” means an Option intended to qualify as an
incentive stock option within the meaning of Section 422 of the Code.

          (v) “Officer” means a person who is an officer of the Company or a Related
Entity within the meaning of Section 16 of the Exchange Act and the rules and
regulations promulgated thereunder.

          (w) “Option” means an option to purchase Shares pursuant to an Award
Agreement granted under the Plan that is not intended to qualify as an
Incentive Stock Option.

          (x) “Parent” means a “parent corporation,” whether now or hereafter
existing, as defined in Section 424(e) of the Code.

          (y) “Plan” means this 2002 Non-Qualified Stock Option Plan.

          (z) “Related Entity” means any Parent, Subsidiary and any business,
corporation, partnership, limited liability company or other entity in which
the Company, a Parent or a Subsidiary holds a substantial ownership interest,
directly or indirectly.

          (aa) “Rule 16b-3” means Rule 16b-3 promulgated under the Exchange Act or
any successor thereto.

          (bb) “Share” means a share of the Common Stock.

          (cc) “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.

          (a) Subject to the provisions of Section 10, below, the maximum aggregate
number of Shares that may be issued pursuant to all Awards is 6,000,000 (six
million) Shares, and commencing with the first business day of each fiscal year
beginning with March 31, 2003, such maximum aggregate number of Shares shall be
increased by a number equal to four percent (4%) of the number of Shares
outstanding as of the last business day of the immediately preceding fiscal
year. The Shares to be issued pursuant to Awards may be authorized, but
unissued, or reacquired Common Stock.

          (b) Any Shares covered by an Award (or portion of an Award) that is
forfeited or canceled, expires or is settled in cash, shall be deemed not to
have been issued for purposes of

3

 

determining the maximum aggregate number of Shares which may be issued
under the Plan. Shares that actually have been issued under the Plan pursuant
to an Award shall not be returned to the Plan and shall not become available
for future issuance under the Plan, except that if unvested Shares are
forfeited, or repurchased by the Company at their original purchase price, such
Shares shall become available for future grant under the Plan.

     4. Administration of the Plan.

          (a) Plan Administrator.

               (i) Administration. The Plan shall be administered by (A) the Board or (B)
the Committee. The Board may authorize one or more Officers to grant such
Awards and may limit such authority as the Board determines from time to time.

               (ii) Administration Errors. In the event an Award is granted in a manner
inconsistent with the provisions of this subsection (a), such Award shall be
presumptively valid as of its grant date to the extent permitted by Applicable
Laws.

          (b) Powers of the Administrator. Subject to Applicable Laws and the
provisions of the Plan (including any other powers given to the Administrator
hereunder), and except as otherwise provided by the Board, the Administrator
shall have the authority, in its discretion:

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

               (ii) to determine whether and to what extent Awards are granted hereunder;

               (iii) to determine the number of Shares to be covered by each Award
granted hereunder;

               (iv) to approve forms of Award Agreements for use under the Plan;

               (v) to determine the terms and conditions of any Award granted hereunder;

               (vi) to amend the terms of any outstanding Award granted under the Plan,
provided that any amendment that would adversely affect the Grantee’s rights
under an outstanding Award shall not be made without the Grantee’s written
consent;

               (vii) to construe and interpret the terms of the Plan and Awards granted
pursuant to the Plan, including without limitation, any notice of Award or
Award Agreement, granted pursuant to the Plan;

               (viii) to establish additional terms, conditions, rules or procedures to
accommodate the rules or laws of applicable foreign jurisdictions; provided,
however, that no Award shall be granted under any such additional terms,
conditions, rules or procedures with terms or conditions which are inconsistent
with the provisions of the Plan; and

4

 

               (ix) to take such other action, not inconsistent with the terms of the
Plan, as the Administrator deems appropriate.

     5. Eligibility. An Employee or Consultant who has been granted an Award
may, if otherwise eligible, be granted additional Awards. Awards may be
granted to such Employees or Consultants who are residing in foreign
jurisdictions as the Administrator may determine from time to time.

     6. Terms and Conditions of Awards.

          (a) Conditions of Award. Subject to the terms of the Plan, the
Administrator shall determine the provisions, terms, and conditions of each
Award including, but not limited to, the Award vesting schedule, repurchase
provisions, rights of first refusal, forfeiture provisions, form of payment
(cash, Shares, or other consideration) upon settlement of the Award, payment
contingencies, and satisfaction of any performance criteria. The performance
criteria established by the Administrator may be based on any one of, or
combination of, increase in Share price, earnings per Share, total shareholder
return, return on equity, return on assets, return on investment, net operating
income, cash flow, revenue, economic value added, personal management
objectives, or other measure of performance selected by the Administrator.
Partial achievement of the specified criteria may result in a payment or
vesting corresponding to the degree of achievement as specified in the Award
Agreement.

          (b) Acquisitions and Other Transactions. The Administrator may issue
Awards under the Plan in settlement, assumption or substitution for,
outstanding awards or obligations to grant future awards in connection with the
Company or a Related Entity acquiring another entity, an interest in another
entity or an additional interest in a Related Entity whether by merger, stock
purchase, asset purchase or other form of transaction.

          (c) Term of Award. The term of each Award shall be the term stated in the
Award Agreement provided, however, that the term shall be no more than ten (10)
years from the date of grant thereof.

          (d) Transferability of Awards. Awards may not be transferred except as
provided in the Award Agreement or in the manner and to the extent determined
by the Administrator.

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

     7. Award Exercise Price, Consideration and Taxes.

          (a) Exercise Price. The exercise price for an Option shall be determined
by the Administrator and stated in the Award Agreement, provided that the per
Share exercise price of an Option shall be not less than one hundred percent
(100%) of the Fair Market Value per Share on the date of grant.

5

 

          (b) Consideration. Subject to Applicable Laws, the consideration to be
paid for the Shares to be issued upon exercise or purchase of an Award,
including the method of payment, shall be determined by the Administrator. In
addition to any other types of consideration the Administrator may determine,
the Administrator is authorized to accept as consideration for Shares issued
under the Plan the following:

               (i) cash;

               (ii) check;

               (iii) consideration received by the Company under a cashless exercise
program implemented by the Company in connection with the Plan;

               (iv) surrender of Shares or delivery of a properly executed form of
attestation of ownership of Shares as the Administrator may require (including
withholding of Shares otherwise deliverable upon exercise of the Award) which
have a Fair Market Value on the date of surrender or attestation equal to the
aggregate exercise price of the Shares as to which said Award shall be
exercised (but only to the extent that such exercise of the Award would not
result in an accounting compensation charge with respect to the Shares used to
pay the exercise price unless otherwise determined by the Administrator); or

               (v) any combination of the foregoing methods of payment.

          (c) Taxes. No Shares shall be delivered under the Plan to any Grantee or
other person until such Grantee or other person has made arrangements
acceptable to the Administrator for the satisfaction of any foreign, federal,
state, or local income and employment tax withholding obligations. Upon
exercise of an Award, the Company shall withhold or collect from Grantee an
amount sufficient to satisfy such tax obligations.

     8. Exercise of Award.

          (a) Procedure for Exercise; Rights as a Shareholder.

               (i) Any Award granted hereunder shall be exercisable at such times and
under such conditions as determined by the Administrator under the terms of the
Plan and specified in the Award Agreement.

               (ii) An Award 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
Award by the person entitled to exercise the Award and full payment for the
Shares with respect to which the Award is exercised. 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 Shares subject to an Award,
notwithstanding the exercise of the Award. The Company shall issue (or cause
to be issued) such stock certificate promptly upon exercise of the Award. 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 the
Award Agreement or Section 10, below.

6

 

          (b) Exercise of Award Following Termination of Continuous Service.

               (i) An Award may not be exercised after the termination date of such Award
set forth in the Award Agreement and may be exercised following the termination
of a Grantee’s Continuous Service only to the extent provided in the Award
Agreement.

               (ii) Where the Award Agreement permits a Grantee to exercise an Award
following the termination of the Grantee’s Continuous Service for a specified
period, the Award shall terminate to the extent not exercised on the last day
of the specified period or the last day of the original term of the Award,
whichever occurs first.

     9. Conditions Upon Issuance of Shares.

          (a) Shares shall not be issued pursuant to the exercise of an Award unless
the exercise of such Award and the issuance and delivery of such Shares
pursuant thereto shall comply with all Applicable Laws, and shall be further
subject to the approval of counsel for the Company with respect to such
compliance.

          (b) As a condition to the exercise of an Award, the Company may require
the person exercising such Award 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
Applicable Laws.

     10. Adjustments Upon Changes in Capitalization. Subject to any required
action by the shareholders of the Company, the number of Shares covered by each
outstanding Award, and the number of Shares which have been authorized for
issuance under the Plan but as to which no Awards have yet been granted or
which have been returned to the Plan, the exercise or purchase price of each
such outstanding Award, as well as any other terms that the Administrator
determines require adjustment shall be proportionately adjusted for (i) any
increase or decrease in the number of issued Shares resulting from a stock
split, reverse stock split, stock dividend, combination or reclassification of
the Shares, or similar event affecting the Shares, (ii) any other increase or
decrease in the number of issued Shares effected without receipt of
consideration by the Company, or (iii) as the Administrator may determine in
its discretion, any other transaction with respect to Common Stock to which
Section 424(a) of the Code applies or any similar transaction; provided,
however that conversion of any convertible securities of the Company shall not
be deemed to have been “effected without receipt of consideration.” Such
adjustment shall be made by the Administrator and its determination shall be
final, binding and conclusive. Except as the Administrator determines, no
issuance by the Company of shares of stock of any class, or securities
convertible into shares of stock of any class, shall affect, and no adjustment
by reason hereof shall be made with respect to, the number or price of Shares
subject to an Award.

     11. Corporate Transactions. In the event of a Corporate Transaction, each
outstanding Award shall be assumed or an equivalent option or right substituted
by the successor corporation or a Parent or Subsidiary of the successor
corporation, or in the event that the successor corporation refuses to assume
or substitute for the Award, the Grantee shall have the right to

7

 

exercise the Award as to all of the stock subject to the Award, including
Shares that would not otherwise be exercisable. If an Award is exercisable in
lieu of assumption or substitution in the event of a Corporate Transaction, the
Administrator shall notify the Grantee that the Award shall be fully
exercisable for a period of fifteen (15) days from the date of such notice, and
the Award shall terminate upon the expiration of such period. For the purposes
of this paragraph, the Award shall be considered assumed if, following the
Corporate Transaction, the Award confers the right to purchase or receive, for
each Share subject to the Award immediately prior to the Corporate Transaction,
the consideration received in the Corporate Transaction by holders of Common
Stock for each Share held on the effective date of the transaction (and if
holders were offered a choice of consideration, the type of consideration
chosen by the holders of a majority of the outstanding Shares); provided,
however, that if such consideration received in the Corporate Transaction was
not solely common stock of the successor corporation or its Parent, the
Administrator may, with the consent of the successor corporation, provide for
the consideration to be received upon the exercise of the Award, for each Share
subject to the Award, to be solely common stock of the successor corporation or
its Parent equal in fair market value to the per share consideration received
by holders of Common Stock in the Corporate Transaction.

     12. Dissolution or Liquidation. In the event of the dissolution or
liquidation of the Company, the Administrator shall notify each Grantee as soon
as practicable prior to the effective date of such proposed transaction. The
Administrator in its discretion may provide for a Grantee to have the right to
exercise his or her Award until ten (10) days prior to such transaction as to
all of the Shares covered thereby, including Shares that would not otherwise be
exercisable. In addition, the Administrator may provide that any Company
repurchase option applicable to any Shares purchased upon exercise of an Award
shall lapse as to all such Shares, provided the proposed dissolution or
liquidation takes place at the time and in the manner contemplated. To the
extent it has not been previously exercised, an Award will terminate
immediately prior to the consummation of such proposed action.

     13. Effective Date and Term of Plan. The Plan shall become effective
upon its adoption by the Board. It shall continue in effect indefinitely until
it is terminated by the Board. Subject to Applicable Laws, Awards may be
granted under the Plan upon it becoming effective.

     14. Amendment, Suspension or Termination of the Plan.

          (a) The Board may at any time amend, suspend or terminate the Plan.

          (b) The Administrator may amend the terms of any outstanding Award,
prospectively or retroactively, but no such amendment shall (i) impair the
rights of any Grantee without the Grantee’s consent or (ii) modify the terms of
any Award in a manner inconsistent with the provisions of the Plan. Subject to
the above provisions, the Board shall have authority to amend the Plan to take
into account changes in Applicable Laws and accounting rules as well as other
developments, and to grant Awards which qualify for beneficial treatment under
such rules.

          (c) No Award may be granted during any suspension of the Plan or after
termination of the Plan.

8

 

          (d) Any amendment, suspension or termination of the Plan shall not affect
Awards already granted, and such Awards shall remain in full force and effect
as if the Plan had not been amended, suspended or terminated, unless mutually
agreed otherwise between the Grantee and the Administrator, which agreement
must be in writing and signed by the Grantee and the Company.

     15. Reservation of Shares.

          (e) The Company, during the term of the Plan, will at all times reserve
and keep available such number of Shares as shall be sufficient to satisfy the
requirements of the Plan.

          (f) 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. No Effect on Terms of Employment/Consulting Relationship. The Plan
shall not confer upon any Grantee any right with respect to the Grantee’s
Continuous Service, nor shall it interfere in any way with his or her right or
the Company’s right to terminate the Grantee’s Continuous Service at any time,
with or without cause.

     17. No Effect on Retirement and Other Benefit Plans. Except as
specifically provided in a retirement or other benefit plan of the Company or a
Related Entity, Awards shall not be deemed compensation for purposes of
computing benefits or contributions under any retirement plan of the Company or
a Related Entity, and shall not affect any benefits under any other benefit
plan of any kind or any benefit plan subsequently instituted under which the
availability or amount of benefits is related to level of compensation. The
Plan is not a “Retirement Plan” or “Welfare Plan” under the Employee Retirement
Income Security Act of 1974, as amended.

9

 

EXHIBIT 10.9-A

AMENDMENT TO THE

CIRRUS LOGIC, INC. 2002 STOCK OPTION PLAN

     In accordance with the provisions of Section 14 of the Cirrus Logic, Inc.
2002 Stock Option Plan (the “Plan”), Cirrus Logic, Inc. hereby amends the Plan,
effective as of November 1, 2002, as follows:

     1. Section 2 of the Plan is amended by re-designating the existing clauses
(x) through (cc) thereof as clauses (y) through (dd), respectively, and adding
a new clause (x) to read as follows:

		
	 	          “(x) “Option Exchange Program” means a program approved by the
Administrator whereby outstanding Options are exchanged for Options (or
stock options granted pursuant to a plan of a Parent or Subsidiary of the
Company) with a lower exercise price or are amended to decrease the
exercise price as a result of a decline in the Fair Market Value of the
Common Stock.”

     2. Section 4(b) of the Plan is amended by re-designating the existing
clauses (vii), (viii) and (ix) thereof as clauses (viii), (ix) and (x),
respectively, and adding a new clause (vii) to read as follows:

		
	 	          “(vii) to implement an Option Exchange Program on such terms and
conditions as the Administrator in its discretion deems appropriate,
provided that no amendment or adjustment to an Option that would
materially and adversely affect the rights of any Optionee shall be made
without the prior written consent of the Optionee;”

 

EXHIBIT 10.9-B

CIRRUS LOGIC, INC. 2002 NON-QUALIFIED STOCK OPTION PLAN

NON-QUALIFIED STOCK OPTION AWARD AGREEMENT

     1. Grant of Option. Cirrus Logic, Inc., a Delaware corporation (the
“Company”), hereby grants to the Grantee (the “Grantee”) named in the Notice of
Stock Option Award (the “Notice”), a non-qualified stock option (the “Option”)
to purchase the Total Number of Shares of Common Stock subject to the Option
(the “Shares”) set forth in the Notice, at the Exercise Price per Share set
forth in the Notice (the “Exercise Price”) subject to the terms and provisions
of the Notice, this Non-Qualified Stock Option Award Agreement (the “Option
Agreement”) and the Company’s 2002 Non-Qualified Stock Option Plan, as amended
from time to time (the “Plan”), which are incorporated herein by reference.
Unless otherwise defined herein, the terms defined in the Plan shall have the
same defined meanings in this Option Agreement.

     2. Exercise of Option.

          (a) Right to Exercise. The Option shall be exercisable during its term in
accordance with the Vesting Schedule set out in the Notice and with the
applicable provisions of the Plan and this Option Agreement. During any
authorized leave of absence, the continued vesting of the Option shall be
determined in accordance with the Company’s leave of absence policy as may be
amended from time to time. The Option shall be subject to the provisions of
Sections 11 and 12 of the Plan relating to the exercisability or termination of
the Option in the event of certain transactions. The Grantee shall be subject
to reasonable limitations on the number of requested exercises during any
monthly or weekly period as determined by the Administrator. In no event shall
the Company issue fractional Shares.

          (b) Method of Exercise. This Option is exercisable by delivery of an
exercise notice, in the form attached as Exhibit A (the “Exercise Notice”),
which shall state the election to exercise the Option, the number of Shares in
respect of which the Option is being exercised (the “Exercised Shares”), and
such other representations and agreements as may be required by the Company
pursuant to the provisions of the Plan. The Exercise Notice shall be completed
by the Optionee and delivered to E*Trade as the Company’s Plan Administrator.
The Exercise Notice shall be accompanied by payment of the aggregate Exercise
Price as to all Exercised Shares. This Option shall be deemed to be exercised
upon receipt by E*Trade on behalf of the Company of such fully executed
Exercise Notice accompanied by such aggregate Exercise Price.

     No Shares shall be issued pursuant to the exercise of this Option unless
such issuance and exercise complies with Applicable Laws. Assuming such
compliance, for income tax purposes the Exercised Shares shall be considered
transferred to the Optionee on the date the Option is exercised with respect to
such Exercised Shares.

          (c) Taxes. No Shares will be delivered to the Grantee or other person
pursuant to the exercise of the Option until the Grantee or other person has
made arrangements acceptable to the Administrator for the satisfaction of
applicable income tax, employment tax, and social security tax withholding
obligations. Upon exercise of the Option, the Company or the Grantee’s
employer may offset or withhold (from any amount owed by the Company or the

 

 

Grantee’s employer to the Grantee) or collect from the Grantee or other
person an amount sufficient to satisfy such tax obligations and/or the
employer’s withholding obligations.

     3. Method of Payment. Payment of the Exercise Price shall be by any of
the following, or a combination thereof, at the election of the Grantee;
provided, however, that such exercise method does not then violate any
Applicable Law:

          (a) cash;

          (b) check;

          (c) consideration received by the Company under a cashless exercise
program implemented by the Company in connection with the Plan; or

          (d) surrender of Shares (including withholding of Shares otherwise
deliverable upon exercise of the Option) which have a Fair Market Value on the
date of surrender equal to the aggregate Exercise Price of the Shares as to
which the Option is being exercised (but only to the extent that such exercise
of the Option would not result in an accounting compensation charge with
respect to the Shares used to pay the exercise price).

     4. Restrictions on Exercise. The Option may not be exercised if the
issuance of the Shares subject to the Option upon such exercise would
constitute a violation of any Applicable Laws.

     5. Termination or Change of Continuous Service. In the event the
Grantee’s Continuous Service terminates, the Grantee may, to the extent
otherwise so entitled at the date of such termination (the “Termination Date”),
exercise the Option during the ninety (90)-day period that begins on the day
following the Termination Date. In no event shall the Option be exercised
later than the Expiration Date set forth in the Notice. In the event of the
Grantee’s change in status from Employee or Consultant to any other status of
Employee or Consultant, the Option shall remain in effect and, except to the
extent otherwise determined by the Administrator, continue to vest. Except as
provided in Sections 6 and 7 below, to the extent that the Grantee is not
entitled to exercise the Option on the Termination Date, or if the Grantee does
not exercise the Option within the 90 days following termination, the Option
shall terminate.

     6. Disability of Grantee. In the event the Grantee’s Continuous Service
terminates as a result of his or her Disability, the Grantee may, but only
within twelve (12) months from the Termination Date (and in no event later than
the Expiration Date), exercise the Option to the extent he or she was otherwise
entitled to exercise it on the Termination Date. To the extent that the
Grantee is not entitled to exercise the Option on the Termination Date, or if
the Grantee does not exercise the Option to the extent so entitled within the
time specified herein, the Option shall terminate.

     7. Death of Grantee. In the event of the termination of the Grantee’s
Continuous Service as a result of his or her death, the Grantee’s estate, or a
person who acquired the right to exercise the Option by bequest or inheritance,
may exercise the Option, but only to the extent the Grantee could exercise the
Option at the date of termination, within twelve (12) months from the date of
death (but in no event later than the Expiration Date). To the extent that the
Grantee is

2

 

not entitled to exercise the Option on the date of death, or if the Option
is not exercised to the extent so entitled within the time specified herein,
the Option shall terminate.

     8. Non-Transferability of Option. An Option may not be sold, pledged,
assigned, hypothecated, transferred, or disposed of in any manner other than as
set forth in this Section 8. The Option may be transferred to any person by
will and by the laws of descent and distribution. In addition, the Option also
may be transferred during the lifetime of the Grantee pursuant to a domestic
relations order to members of the Grantee’s Immediate Family to the extent and
in the manner determined by the Administrator. The terms of the Option shall
be binding upon the executors, administrators, heirs, successors and
transferees of the Grantee.

     9. Term of Option. The Option may be exercised no later than the
Expiration Date set forth in the Notice or such earlier date as otherwise
provided herein.

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

          (a) Exercise of Options. On exercise of an Option, the Grantee 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 the Grantee is an Employee or
a former Employee, the Company will be required to withhold from the Grantee’s
compensation or collect from the Grantee 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.

          (b) Disposition of Shares. If Shares acquired as a result of an Option
exercise are held for more than one year, any gain realized on disposition of
the Shares will be treated as long-term capital gain for federal income tax
purposes.

     11. Entire Agreement: Governing Law. The Notice, 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 the Grantee with respect to the subject
matter hereof, and may not be modified adversely to the Grantee’s interest
except by means of a writing signed by the Company and the Grantee. Nothing in
the Notice, the Plan and this Option Agreement (except as expressly provided
therein) is intended to confer any rights or remedies on any persons other than
the parties. The Notice, the Plan and this Option Agreement are to be
construed in accordance with and governed by the internal laws of the State of
Texas without giving effect to any choice of law rule that would cause the
application of the laws of any jurisdiction other than the internal laws of the
State of Texas to the rights and duties of the parties. Should any provision
of the Notice, the Plan or this Option Agreement be determined by a court of
law to be illegal or unenforceable,

3

 

such provision shall be enforced to the fullest extent allowed by law and
the other provisions shall nevertheless remain effective and shall remain
enforceable.

     12. Headings. The captions used in the Notice and this Option Agreement
are inserted for convenience and shall not be deemed a part of the Option for
construction or interpretation.

     13. Dispute Resolution The provisions of this Section 13 shall be the
exclusive means of resolving disputes arising out of or relating to the Notice,
the Plan and this Option Agreement. The Company, the Grantee, and the
Grantee’s assignees pursuant to Sections 7 and 8 (the “parties”) shall attempt
in good faith to resolve any disputes arising out of or relating to the Notice,
the Plan and this Option Agreement by negotiation between individuals who have
authority to settle the controversy. Negotiations shall be commenced by either
party by notice of a written statement of the party’s position and the name and
title of the individual who will represent the party. Within thirty (30) days
of the written notification, the parties shall meet at a mutually acceptable
time and place, and thereafter as often as they reasonably deem necessary, to
resolve the dispute.

     Any controversy, dispute or claim that has not been settled by negotiation
within thirty (30) days of the written notification as set forth above shall be
finally settled by arbitration under the Commercial Arbitration Rules of the
American Arbitration Association (“AAA”) by three arbitrators. In such event,
the claimant will deliver a written notice to the respondent(s) and the AAA
initiating arbitration and naming an arbitrator. Within twenty (20) days after
receipt of such arbitration notice, the respondent(s) shall name an arbitrator.
Within twenty (20) days from the naming of the two arbitrators, the two
arbitrators shall name a third arbitrator. If there are multiple claimants
and/or multiple respondents, all claimants and/or all respondents shall attempt
to agree upon naming their respective arbitrator. If the claimants or
respondents, as the case may be, fail to name their respective arbitrator, or
if the two arbitrators fail to name a third arbitrator, or if within twenty
(20) days after any arbitrator shall resign or otherwise cease to serve as such
a replacement arbitrator is not named by the party that originally named such
arbitrator, such arbitrator as to which agreement cannot be reached or as to
which a timely appointment is not made shall be named by the AAA. The place of
arbitration shall be Austin, Texas. The award of the arbitrators may be
entered in any court of competent jurisdiction. The costs of the arbitration
shall be shared by the disputing parties equally. Notwithstanding anything to
the contrary herein, the arbitrators shall not award nor shall the Company have
any liability for any consequential, punitive, special, incidental, indirect or
similar damages.

     14. Notices. Any notice required or permitted hereunder shall be given in
writing and shall be deemed effectively given upon personal delivery or upon
deposit in the United States mail by certified mail (if the parties are within
the United States) or upon deposit for delivery by an internationally
recognized express mail courier service (for international delivery of notice),
with postage and fees prepaid, addressed to the other party at its address as
such party may designate in writing from time to time to the other party.

     By your signature below, you agree that this Option is granted under and
governed by the terms and conditions of the Plan and this Option Agreement.
Optionee has reviewed the Plan and this Option Agreement in their entirety, has
had an opportunity to obtain the advice of

4

 

counsel prior to executing this Option Agreement and fully understands all
provisions of the Plan and Option Agreement. Optionee hereby agrees to accept
as binding, conclusive and final all decisions or interpretations of the
Administrator upon any questions relating to the Plan and Option Agreement.
Optionee further agrees to notify the Company upon any change in the residence
address indicated below.

	 	 	 
	 	 	
OPTIONEE:
	 
	 	 	 
	 	 	
 

Signature
	 	 	
 

Printed Name
	 	 	
 

Date

5Cirrus Logic, Inc.

 

EXHIBIT 10.18

AMENDMENT NO. 2 TO

LEASE AGREEMENT

 
 

BY AND BETWEEN

DESTA FIVE PARTNERSHIP, LTD.

AS LANDLORD,

 
 

 
AND

 
 

CIRRUS LOGIC, INC.

AS TENANT

 

 

SECOND AMENDMENT TO LEASE AGREEMENT

     This is the Second Amendment to the Lease Agreement by and between Desta
Five Partnership, Ltd., as Landlord, and Cirrus Logic, Inc., as Tenant,
effective November 10, 2000, as amended by the First Amendment to Lease
Agreement, covering all of the rentable area in the Terrace V Building
(the “Lease”).

     Landlord has completed the Building and Landlord and Tenant hereby agree
to make certain amendments to the Lease to confirm the Commencement Date, the
Base Rent, as well as other matters as follows:

     1.     Basic Lease Provisions. Landlord and Tenant agree to adopt the First
Restated Basic Lease Provisions to the Lease which are attached hereto in lieu
of the Basic Lease Provisions to the Lease, which shall have no further force
or effect.

     2.     Lease Term. The provisions of Section 2.01 are hereby deleted and the
following is substituted in lieu thereof:

	 	 	 	“The primary term of this Lease shall commence on the Commencement Date
and shall expire on August 31, 2012 (the “Expiration Date”). The “Lease
Term” of this Lease shall be primary term specified in this Section
2.01, as renewed or otherwise extended or earlier terminated pursuant to
the terms and provisions set forth herein.”

     3.     Base Rent. The provisions of Section 3.01 are hereby amended and
revised in their entirety as follows:

     3.01 Base Rent. Landlord and Tenant agree the annual Base Rent
shall be $4,632,685.32. Tenant shall pay the Base Rent

2

 

	 	 	 	to Landlord in monthly installments of $386,057.11 in advance on or
before the first day of each calendar month during the Lease Term. If the
Lease Term is extended for a partial month, then the Base Rent for any
partial calendar month will be prorated on a per diem basis.

Notwithstanding the foregoing amendment of Section 3.01, Landlord and Tenant
agree that the mechanism for determining “Project Costs”, as set out in Section
3.01 prior to this Second Amendment, will continue to be utilized for the
purpose of determining the Base Rent applicable to Building VI under the
provisions set out in Paragraph I.C.2. of Exhibit “I” attached to the Lease.

     4. Ratification of Lease. Except as amended herein, the
Lease is ratified and confirmed by Landlord and Tenant.

     Executed and effective this 20th day of December, 2002.

	 	 	 
	LANDLORD:	 	
TENANT:
	 	 	 
	 	 	 
	DESTA FIVE PARTNERSHIP, LTD.	 	
CIRRUS LOGIC, INC.
	 	 	 
	BY: Desta Five Development Corp.,	 	
BY: /s/ Steven D. Overly
	        its general partner	 	

	 	 	
Name: Steven D. Overly
	 	 	

	     By: /s/ L. Paul Latham	 	
Title: SVP, CFO & GC
	
	 	

	          L. Paul Latham,	 	 
	          President	 	 

Approved as to Form and Content:

BANK ONE, NA,

as Administrative Agent and Co-Lender

By:____________________________________

      Jeffrey A. Etter, 

      First Vice President

3

 

FIRST RESTATED

BASIC LEASE PROVISIONS

	 	 	 
	Landlord:	 	
Desta Five Partnership, Ltd., a Texas limited partnership
	 	 	 
	Landlord’s Address:	 	
6 Desta Drive, Suite 6500
	 	 	
Midland, Texas 79705
	 	 	
Attn: Mr. L. Paul Latham
	 	 	
Telephone No. (915) 688-3212
	 	 	
Fax No. (915) 688-3247
	 	 	 
	 	 	
with copy to:
	 	 	
Desta Five Partnership, Ltd.
	 	 	
2700 Via Fortuna, Suite 140
	 	 	
Austin, Texas 78746
	 	 	
Attn: Mr. Rod Arend
	 	 	
Telephone No. (512) 306-9093
	 	 	
Fax No. (512) 306-9112
	 	 	 
	Tenant:	 	
Cirrus Logic, Inc.
	 	 	 
	Tenant’s Address:	 	
2901 Via Fortuna, Suite 100
	 	 	
Austin, Texas 78746
	 	 	
Attention: General Counsel
	 	 	
Telephone No. (512) 851-4234
	 	 	
Fax No. (512) 851-4136
	 	 	 
	 	 	
with copy to:
	 	 	
2901 Via Fortuna, Suite 100
	 	 	
Austin, Texas 78746
	 	 	
Attention: Treasurer
	 	 	
Telephone No. (512) 851-4002
	 	 	
Fax No. (512) 851-4136
	 	 	 
	Building:	 	
The land described on Exhibit A attached hereto (the
“Land”),
together with all improvements to be constructed thereon, including all
building systems which are included within and/or serve the Building and
the related parking garage located on the Land (the “Garage”) . The floor
plans of the Building are generally depicted on Exhibit B attached
hereto. The Building will be known as, 2901 Via Fortuna, Austin, Texas
78746.

4

 

	 	 	 
	 	 	 
	Leased Premises:	 	
All of the Building and the Land.
	 	 	 
	Total Building Area:	 	
196,717 square feet of Rentable Area, subject to
adjustment as provided in Section 1.01(a).
	 	 	 
	      Base Rent:	 	
Beginning on the commencement Date, Base Rent under

this Lease will be payable as set forth below:

	 	 	 	 	 
	Lease	 	 	 	Monthly
	Months	 	Annual Rate	 	Installments
	
	 	
	 	

	1-120	 	
$23.55
	 	$386,057.11

	 	 	 
	Rent:	 	
The Base Rent, Additional Rent (hereinafter
defined), and all other amounts payable by Tenant to
Landlord under this Lease.
	 	 	 
	Tenant’s Percentage:	 	
One Hundred percent (100%);
	 	 	 
	Effective Date:	 	
November 10, 2000
	 	 	 
	Commencement Date:	 	
September 1, 2002
	 	 	 
	Lease Term:	 	
One Hundred Twenty (120) months, commencing on the Commencement
Date and subject to the option to extend set forth on Exhibit H.
	 	 	 
	Building

Standard Hours:	 	
7:00 a.m. to 7:00 p.m. on each Monday through Friday (excluding
Building Holidays) and 8:00 a.m. to 5:00 p.m. on each Saturday (excluding
Building Holidays), subject to the modifications set forth in Section
4.01(b). Notwithstanding the foregoing recitation of
Building Standard Hours or any other provision
in this Lease to the contrary; it is agreed
and understood that Tenant and Tenant’s
authorized employees shall have free and
uninterrupted access to the Leased Premises at
all times (24 hours per day, 7 days per week).
	 	 	 
	Building Holidays:	 	
New Years Day, Memorial Day, Independence Day, Labor Day,
Thanksgiving Day and Christmas Day.

 

 

	 	 	 
	 	 	 
	Tenant’s Broker:	 	
NAI Commercial Industrial Properties Company
	 	 	
7320 N. Mopac Expressway, Suite 100
	 	 	
Austin, Texas 78731
	 	 	 
	Landlord’s Broker:	 	
Colliers Oxford Commercial, Inc.
	 	 	
2700 Via Fortuna Drive, Suite 100
	 	 	
Austin, Texas 78748
	 	 	 
	Security:	 	
A cash deposit of $540,160 plus a $9,000,000
Letter of Credit, as may be adjusted pursuant
to Section 3.05.
	 	 	 
	Parking:	 	
Tenant shall be entitled to utilize all of the
parking spaces in the Garage (which will be at
least 768 parking spaces) and all of the
surface parking spaces which are located upon
the Land, all at no cost to Tenant.
	 	 	 
	Permitted Use	 	
General office uses, uses related to integrated circuit design,
and uses which are ancillary or appurtenant to the foregoing, including,
but not limited to training centers, cafeterias, computer rooms, data and
word processing centers, and research services use including research
laboratories in which testing and verification of electrical products
occurs in accordance with applicable city zoning ordinances.

The Basic Lease Provisions set forth hereinabove are hereby incorporated into
and made a part of the Lease Agreement which is attached hereto (the “Lease”).
Each reference in the Lease to any of the provisions or definitions set forth
in these Basic Lease Provisions shall mean and refer to the provisions and
definitions hereinabove set forth and shall be used in conjunction with the
provisions of the Lease. In the event of any direct conflict between these
Basic Lease Provision and the Lease, these Basic Lease Provisions shall
control; provided, however, that those provisions in the Lease (including all
exhibits and attachments thereto) which expressly require an adjustment or
modification to any of the matters set forth in these Basic Lease Provisions
shall supersede the adjusted or modified provisions of these Basic Lease
Provisions.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00052-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00052-of-00352.parquet"}]]