Document:

exv10w03

 

Exhibit 10.03

SILICON IMAGE, INC.

1999 EQUITY INCENTIVE PLAN

Adopted July 20, 1999

As Amended March 29, 2001

As Amended and Restated May 20, 2003

As Amended and Restated April 5, 2005

          1. PURPOSE. The purpose of this Plan is to provide incentives to attract, retain and
motivate eligible persons whose present and potential contributions are important to the success of
the Company, its Parent and Subsidiaries, by offering them an opportunity to participate in the
Company’s future performance through awards of Options, Restricted Stock and Stock Bonuses.
Capitalized terms not defined in the text are defined in Section 23.

          2. SHARES SUBJECT TO THE PLAN.

               2.1 Number of Shares Available. Subject to Sections 2.2 and 18, the total number of
Shares reserved and available for grant and issuance pursuant to this Plan will be 2,000,000 Shares
plus Shares that are subject to: (a) issuance upon exercise of an Option but cease to be subject to
such Option for any reason other than exercise of such Option; (b) an Award granted hereunder but
are forfeited or are repurchased by the Company at the original issue price; and (c) an Award that
otherwise terminates without Shares being issued. In addition, any authorized shares not issued or
subject to outstanding grants under the Silicon Image, Inc. 1995 Equity Incentive Plan (the “Prior
Plan”) on the Effective Date (as defined below) and any shares issued under the Prior Plan that are
forfeited or repurchased by the Company or that are issuable upon exercise of options granted
pursuant to the Prior Plan that expire or become unexercisable for any reason without having been
exercised in full, will no longer be available for grant and issuance under the Prior Plan, but
will be available for grant and issuance under this Plan. In addition, on the first business day
of each calendar year of the Company during the term of the Plan, the aggregate number of Shares
reserved and available for grant and issuance pursuant to this Plan will be increased automatically
by a number of Shares equal to 5% of the total outstanding shares of the Company, provided,
that the Board or the Committee may in its sole discretion reduce the amount of the increase in any
particular year; and, provided further, that no more than 20,000,000 shares shall qualify
as ISOs (as defined in Section 5 below). At all times the Company shall reserve and keep available
a sufficient number of Shares as shall be required to satisfy the requirements of all outstanding
Options granted under this Plan and all other outstanding but unvested Awards granted under this
Plan.

 

 

               2.2 Adjustment of Shares. 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 reserved for issuance under this Plan, (b) the Share
amounts set forth in Section 3 below, (c) the number of Shares subject to each Annual Grant
described in Section 9 below, (d) the Exercise Prices of and number of Shares subject to
outstanding Options, and (e) the number of Shares subject to other outstanding Awards 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.

          3. ELIGIBILITY. ISOs (as defined in Section 5 below) may be granted only to employees
(including officers and directors who are also employees) of the Company or of a Parent or
Subsidiary of the Company. All other Awards may be granted to employees, officers, directors,
consultants, independent contractors and advisors of the Company or any Parent or Subsidiary of the
Company; provided such consultants, contractors and advisors render bona fide services not
in connection with the offer and sale of securities in a capital-raising transaction. No person
will be eligible to receive more than 1,000,000 Shares in any calendar year under this Plan
pursuant to the grant of Awards hereunder, other than new employees of the Company or of a Parent
or Subsidiary of the Company (including new employees who are also officers and directors of the
Company or any Parent or Subsidiary of the Company), who are eligible to receive up to a maximum of
1,500,000 Shares in the calendar year in which they commence their employment. A person may be
granted more than one Award under this Plan.

          4. ADMINISTRATION.

               4.1 Committee Authority. This Plan will be administered by the Committee or by the
Board acting as the Committee. Except for automatic grants to Eligible Directors pursuant to
Section 9 hereof, and subject to the general purposes, terms and conditions of this Plan, and to
the direction of the Board, the Committee will have full power to implement and carry out this
Plan. Except for automatic grants to Eligible Directors pursuant to Section 9 hereof, the
Committee will have the authority to:

	 	(a)	 	construe and interpret this Plan, any Award Agreement and any
other agreement or document executed pursuant to this Plan;
	 
	 	(b)	 	prescribe, amend and rescind rules and regulations relating to
this Plan or any Award;
	 
	 	(c)	 	select persons to receive Awards;
	 
	 	(d)	 	determine the form and terms of Awards;

 

 

	 	(e)	 	determine the number of Shares or other consideration subject to
Awards;
	 
	 	(f)	 	determine whether Awards will be granted singly, in combination
with, in tandem with, in replacement of, or as alternatives to, other Awards
under this Plan or any other incentive or compensation plan of the Company or
any Parent or Subsidiary of the Company;
	 
	 	(g)	 	grant waivers of Plan or Award conditions;
	 
	 	(h)	 	determine the vesting, exercisability and payment of Awards;
	 
	 	(i)	 	correct any defect, supply any omission or reconcile any
inconsistency in this Plan, any Award or any Award Agreement;
	 
	 	(j)	 	determine whether an Award has been earned; and
	 
	 	(k)	 	make all other determinations necessary or advisable for the
administration of this Plan.

               4.2 Committee Discretion. Except for automatic grants to Eligible Directors pursuant
to Section 9 hereof, any determination made by the Committee with respect to any Award will be made
in its sole discretion at the time of grant of the Award or, unless in contravention of any express
term of this Plan or Award, at any later time, and such determination will be final and binding on
the Company and on all persons having an interest in any Award under this Plan. The Committee may
delegate to one or more officers of the Company the authority to grant an Award under this Plan to
Participants who are not Insiders of the Company.

          5. OPTIONS. The Committee may grant Options to eligible persons and will determine
whether such Options will be Incentive Stock Options within the meaning of the Code (“ISO”) or
Nonqualified Stock Options (“NQSOs”), the number of Shares subject to the Option, the Exercise
Price of the Option, the period during which the Option may be exercised, and all other terms and
conditions of the Option, subject to the following:

               5.1 Form of Option Grant. Each Option granted under this Plan will be evidenced by an
Award Agreement which will expressly identify the Option as an ISO or an NQSO (“Stock Option
Agreement”), and, except as otherwise required by the terms of Section 9 hereof, will be in such
form and contain such provisions (which need not be the same for each Participant) as the Committee
may from time to time approve, and which will comply with and be subject to the terms and
conditions of this Plan.

               5.2 Date of Grant. The date of grant of an Option will be the date on which the
Committee makes the determination to grant such Option, unless otherwise specified by the
Committee. The Stock Option Agreement and a copy of this

 

 

Plan will be delivered to the Participant within a reasonable time after the granting of the
Option.

               5.3 Exercise Period. Except for automatic grants to Eligible Directors pursuant to
Section 9 hereof, Options may be exercisable within the times or upon the events determined by the
Committee as set forth in the Stock Option Agreement governing such Option; provided,
however, that no Option will be exercisable after the expiration of ten (10) years from the
date the Option is granted; and provided further that no ISO granted to a person who directly or by
attribution owns more than ten percent (10%) of the total combined voting power of all classes of
stock of the Company or of any Parent or Subsidiary of the Company (“Ten Percent Stockholder”) will
be exercisable after the expiration of five (5) years from the date the ISO is granted. The
Committee also may provide for Options to become exercisable at one time or from time to time,
periodically or otherwise, in such number of Shares or percentage of Shares as the Committee
determines.

               5.4 Exercise Price. The Exercise Price of an Option will be determined by the
Committee when the Option is granted and may be not less than 85% of the Fair Market Value of the
Shares on the date of grant; provided that: (i) the Exercise Price of an ISO will be not less than
100% of the Fair Market Value of the Shares on the date of grant; and (ii) the Exercise Price of
any ISO granted to a Ten Percent Stockholder will not be less than 110% of the Fair Market Value of
the Shares on the date of grant. Payment for the Shares purchased may be made in accordance with
Section 8 of this Plan.

               5.5 Method of Exercise. Options may be exercised only by delivery to the Company of a
written stock option exercise agreement (the “Exercise Agreement”) in a form approved by the
Committee (which need not be the same for each Participant), stating the number of Shares being
purchased, the restrictions imposed on the Shares purchased under such Exercise Agreement, if any,
and such representations and agreements regarding Participant’s investment intent and access to
information and other matters, if any, as may be required or desirable by the Company to comply
with applicable securities laws, together with payment in full of the Exercise Price for the number
of Shares being purchased.

               5.6 Termination. Notwithstanding the exercise periods set forth in the Stock Option
Agreement, exercise of an Option will always be subject to the following:

	 	(a)	 	If the Participant is Terminated for any reason except death or
Disability, then the Participant may exercise such Participant’s Options only to
the extent that such Options would have been exercisable upon the Termination
Date no later than three (3) months after the Termination Date (or such shorter
or longer time period not exceeding five (5) years as may be determined by the
Committee, with any exercise beyond three (3) months after the

 

 

	 	 	 	Termination Date deemed to be an NQSO), but in any event, no later than the
expiration date of the Options.

	 	(b)	 	If the Participant is Terminated because of Participant’s death
or Disability (or the Participant dies within three (3) months after a
Termination other than for Cause or because of Participant’s Disability), then
Participant’s Options may be exercised only to the extent that such Options
would have been exercisable by Participant on the Termination Date and must be
exercised by Participant (or Participant’s legal representative or authorized
assignee) no later than twelve (12) months after the Termination Date (or such
shorter or longer time period not exceeding five (5) years as may be determined
by the Committee, with any such exercise beyond (a) three (3) months after the
Termination Date when the Termination is for any reason other than the
Participant’s death or Disability, or (b) twelve (12) months after the
Termination Date when the Termination is for Participant’s death or Disability,
deemed to be an NQSO), but in any event no later than the expiration date of the
Options.

               5.7 Limitations on Exercise. The Committee may specify a reasonable minimum number of
Shares that may be purchased on any exercise of an Option, provided that such minimum number will
not prevent Participant from exercising the Option for the full number of Shares for which it is
then exercisable.

               5.8 Limitations on ISO. The aggregate Fair Market Value (determined as of the date of
grant) of Shares with respect to which ISO are exercisable for the first time by a Participant
during any calendar year (under this Plan or under any other incentive stock option plan of the
Company, Parent or Subsidiary of the Company) will not exceed $100,000. If the Fair Market Value
of Shares on the date of grant with respect to which ISO are exercisable for the first time by a
Participant during any calendar year exceeds $100,000, then the Options for the first $100,000
worth of Shares to become exercisable in such calendar year will be ISO and the Options for the
amount in excess of $100,000 that become exercisable in that calendar year will be NQSOs. In the
event that the Code or the regulations promulgated thereunder are amended after the Effective Date
of this Plan to provide for a different limit on the Fair Market Value of Shares permitted to be
subject to ISO, such different limit will be automatically incorporated herein and will apply to
any Options granted after the effective date of such amendment.

               5.9 Modification, Extension or Renewal. The Committee may modify, extend or renew
outstanding Options and authorize the grant of new Options in substitution therefor, provided that
any such action may not, without the written consent of a Participant, impair any of such
Participant’s rights under any Option previously granted. Any outstanding ISO that is modified,
extended, renewed or otherwise altered will be treated in accordance with Section 424(h) of the
Code. The Committee may reduce the Exercise Price of outstanding Options without the consent of
Participants

 

 

affected by a written notice to them; provided, however, that the Exercise Price
may not be reduced below the minimum Exercise Price that would be permitted under Section 5.4 of
this Plan for Options granted on the date the action is taken to reduce the Exercise Price.

               5.10 No Disqualification. Notwithstanding any other provision in this Plan, no term
of this Plan relating to ISO will be interpreted, amended or altered, nor will any discretion or
authority granted under this Plan be exercised, so as to disqualify this Plan under Section 422 of
the Code or, without the consent of the Participant affected, to disqualify any ISO under Section
422 of the Code.

          6. RESTRICTED STOCK. A Restricted Stock Award is an offer by the Company to sell to
an eligible person Shares that are subject to restrictions. The Committee will determine to whom
an offer will be made, the number of Shares the person may purchase, the price to be paid (the
“Purchase Price”), the restrictions to which the Shares will be subject, and all other terms and
conditions of the Restricted Stock Award, subject to the following:

               6.1 Form of Restricted Stock Award. All purchases under a Restricted Stock Award made
pursuant to this Plan will be evidenced by an Award Agreement (“Restricted Stock Purchase
Agreement”) that will be in such form (which need not be the same for each Participant) as the
Committee will from time to time approve, and will comply with and be subject to the terms and
conditions of this Plan. The offer of Restricted Stock will be accepted by the Participant’s
execution and delivery of the Restricted Stock Purchase Agreement and full payment for the Shares
to the Company within thirty (30) days from the date the Restricted Stock Purchase Agreement is
delivered to the person. If such person does not execute and deliver the Restricted Stock Purchase
Agreement along with full payment for the Shares to the Company within thirty (30) days, then the
offer will terminate, unless otherwise determined by the Committee.

               6.2 Purchase Price. The Purchase Price of Shares sold pursuant to a Restricted Stock
Award will be determined by the Committee on the date the Restricted Stock Award is granted, except
in the case of a sale to a Ten Percent Stockholder, in which case the Purchase Price will be 100%
of the Fair Market Value. Payment of the Purchase Price may be made in accordance with Section 8
of this Plan.

               6.3 Terms of Restricted Stock Awards. Restricted Stock Awards shall be subject to
such restrictions as the Committee may impose. These restrictions may be based upon completion of
a specified number of years of service with the Company or upon completion of the performance goals
as set out in advance in the Participant’s individual Restricted Stock Purchase Agreement.
Restricted Stock Awards may vary from Participant to Participant and between groups of
Participants. Prior to the grant of a Restricted Stock Award, the Committee shall: (a) determine
the nature, length and starting date of any Performance Period for the Restricted Stock Award; (b)
select from among the Performance Factors to be used to measure performance goals, if any;

 

 

and (c) determine the number of Shares that may be awarded to the Participant. Prior to the
payment of any Restricted Stock Award, the Committee shall determine the extent to which such
Restricted Stock Award has been earned. Performance Periods may overlap and Participants may
participate simultaneously with respect to Restricted Stock Awards that are subject to different
Performance Periods and having different performance goals and other criteria.

               6.4 Termination During Performance Period. If a Participant is Terminated during a
Performance Period for any reason, then such Participant will be entitled to payment (whether in
Shares, cash or otherwise) with respect to the Restricted Stock Award only to the extent earned as
of the date of Termination in accordance with the Restricted Stock Purchase Agreement, unless the
Committee will determine otherwise.

          7. STOCK BONUSES.

               7.1 Awards of Stock Bonuses. A Stock Bonus is an award of Shares (which may consist
of Restricted Stock) for services rendered to the Company or any Parent or Subsidiary of the
Company. A Stock Bonus may be awarded for past services already rendered to the Company, or any
Parent or Subsidiary of the Company pursuant to an Award Agreement (the “Stock Bonus Agreement”)
that will be in such form (which need not be the same for each Participant) as the Committee will
from time to time approve, and will comply with and be subject to the terms and conditions of this
Plan. A Stock Bonus may be awarded upon satisfaction of such performance goals as are set out in
advance in the Participant’s individual Award Agreement (the “Performance Stock Bonus Agreement”)
that will be in such form (which need not be the same for each Participant) as the Committee will
from time to time approve, and will comply with and be subject to the terms and conditions of this
Plan. Stock Bonuses may vary from Participant to Participant and between groups of Participants,
and may be based upon the achievement of the Company, Parent or Subsidiary and/or individual
performance factors or upon such other criteria as the Committee may determine.

               7.2 Terms of Stock Bonuses. The Committee will determine the number of Shares to be
awarded to the Participant. If the Stock Bonus is being earned upon the satisfaction of
performance goals pursuant to a Performance Stock Bonus Agreement, then the Committee will: (a)
determine the nature, length and starting date of any Performance Period for each Stock Bonus; (b)
select from among the Performance Factors to be used to measure the performance, if any; and (c)
determine the number of Shares that may be awarded to the Participant. Prior to the payment of any
Stock Bonus, the Committee shall determine the extent to which such Stock Bonuses have been earned.
Performance Periods may overlap and Participants may participate simultaneously with respect to
Stock Bonuses that are subject to different Performance Periods and different performance goals and
other criteria. The number of Shares may be fixed or may vary in accordance with such performance
goals and criteria as may be determined by the Committee. The Committee may adjust the performance
goals applicable to the Stock Bonuses to take into account changes in law and accounting or tax
rules and to make such

 

 

adjustments as the Committee deems necessary or appropriate to reflect the impact of extraordinary
or unusual items, events or circumstances to avoid windfalls or hardships.

               7.3 Form of Payment. The earned portion of a Stock Bonus may be paid currently or on
a deferred basis with such interest or dividend equivalent, if any, as the Committee may determine.
Payment may be made in the form of cash or whole Shares or a combination thereof, either in a lump
sum payment or in installments, all as the Committee will determine.

          8. PAYMENT FOR SHARE PURCHASES.

               8.1 Payment. Payment for Shares purchased pursuant to this Plan may be made in cash
(by check) or, where expressly approved for the Participant by the Committee and where permitted by
law:

	 	(a)	 	by cancellation of indebtedness of the Company to the
Participant;
	 
	 	(b)	 	by surrender of shares that either: (1) have been owned by
Participant for more than six (6) months and have been paid for within the
meaning of SEC Rule 144 (and, if such shares were purchased from the Company by
use of a promissory note, such note has been fully paid with respect
to such shares); or (2) were obtained by Participant in the public market;
	 
	 	(c)	 	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
the Shares;
	 
	 	(d)	 	by waiver of compensation due or accrued to the Participant for
services rendered;
	 
	 	(e)	 	with respect only to purchases upon exercise of an Option, and
provided that a public market for the Company’s stock exists:

	 	(1)	 	through a “same day sale” commitment from the
Participant and a broker-dealer that is a member of the National
Association of Securities Dealers (an “NASD Dealer”) whereby the
Participant 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

 

 

	 	(2)	 	through a “margin” commitment from the
Participant and a NASD Dealer whereby the Participant 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

	 	(f)	 	by any combination of the foregoing.

               8.2 Loan Guarantees. The Committee may help the Participant pay for Shares purchased
under this Plan by authorizing a guarantee by the Company of a third-party loan to the Participant.

          9. AUTOMATIC GRANTS TO ELIGIBLE DIRECTORS.

               9.1 Types of Options and Shares. Options granted under this Plan and subject to this
Section 9 shall be NQSOs.

               9.2 Eligibility. Options subject to this Section 9 shall be granted only to Eligible
Directors.

               9.3 Annual Grants. Immediately following each annual meeting of stockholders, (a) each
Eligible Director will automatically be granted an Option for 20,000 Shares, provided the Eligible
Director is a member of the Board on such date and has served continuously as a member of the Board
of Directors of the Company for a period of at least one year since the date when such Eligible
Director first became a member of the Board; (b) each Eligible Director who is a member of a
standing committee of the Board will automatically be granted an Option for an additional 5,000
Shares for each such committee on which such Eligible Director serves, provided such Eligible
Director is a member of such committee on such date and has served continuously as a member of such
committee of the Company for a period of at least one year since the date when such Eligible
Director first joined such committee; and (c) if the Chairperson of the Board is an Eligible
Director, the Chairperson of the Board will automatically be granted an Option for an additional
5,000 shares, provided he or she is serving as Chairperson of the Board on such date and has served
continuously as Chairperson of the Board of the Company for a period of at least one year since the
date when such Eligible Director first became Chairperson of the Board. The Options described in
this Section 9.3 are referred to as the “Annual Grants.”

               9.4 Exercise Price; Vesting; Exercise Period. The exercise price of an Annual Grant
shall be the Fair Market Value of the Shares at the time of grant. Provided the director continues
to provide services to the Company, an Annual Grant shall become vested and exercisable with
respect to one twenty-fourth (1/24) of the

 

 

Shares each month following the date of grant until fully vested; provided, however, that an Annual
Grant shall become fully vested immediately prior to the consummation of a Change in Control. The
Exercise Period of an Annual Grant shall end five (5) years after the date of grant.

          10. WITHHOLDING TAXES.

               10.1 Withholding Generally. Whenever Shares are to be issued in satisfaction of
Awards granted under this Plan, the Company may require the Participant 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. Whenever, under this Plan, payments
in satisfaction of Awards are to be made in cash, such payment will be net of an amount sufficient
to satisfy federal, state, and local withholding tax requirements.

               10.2 Stock Withholding. When, under applicable tax laws, a Participant incurs tax
liability in connection with the exercise or vesting of any Award that is subject to tax
withholding and the Participant is obligated to pay the Company the amount required to be withheld,
the Committee may in its sole discretion allow the Participant to satisfy the minimum withholding
tax obligation by electing to have the Company withhold from the Shares to be issued that number of
Shares having a Fair Market Value equal to the minimum amount required to be withheld, determined
on the date that the amount of tax to be withheld is to be determined. All elections by a
Participant to have Shares withheld for this purpose will be made in accordance with the
requirements established by the Committee and be in writing in a form acceptable to the Committee

          11. TRANSFERABILITY.

               11.1 Except as otherwise provided in this Section 11, Awards granted under this Plan, and
any interest therein, will not be transferable or assignable by Participant, and may not be
made subject to execution, attachment or similar process, otherwise than by will or by the
laws of descent and distribution or as determined by the Committee and set forth in the Award
Agreement with respect to Awards that are not ISOs.

               11.2 All Awards other than NQSO’s. All Awards other than NQSO’s shall be
exercisable: (i) during the Participant’s lifetime, only by (A) the Participant, or (B) the
Participant’s guardian or legal representative; and (ii) after Participant’s death, by the
legal representative of the Participant’s heirs or legatees.

               11.3 NQSOs. Unless otherwise restricted by the Committee, an NQSO shall be
exercisable: (i) during the Participant’s lifetime only by (A) the Participant, (B) the
Participant’s guardian or legal representative, (C) a Family Member of the Participant who has
acquired the NQSO by “permitted transfer;” and (ii) after Participant’s death, by the legal
representative of the Participant’s heirs or

 

 

legatees. “Permitted transfer” means, as authorized by this Plan and the Committee in an
NQSO, any transfer effected by the Participant during the Participant’s lifetime of an
interest in such NQSO but only such transfers which are by gift or domestic relations order.
A permitted transfer does not include any transfer for value and neither of the following are
transfers for value: (a) a transfer of under a domestic relations order in settlement of
marital property rights or (b) a transfer to an entity in which more than fifty percent of the
voting interests are owned by Family Members or the Participant in exchange for an interest in
that entity.

          12. PRIVILEGES OF STOCK OWNERSHIP; RESTRICTIONS ON SHARES.

               12.1 Voting and Dividends. No Participant will have any of the rights of a
stockholder with respect to any Shares until the Shares are issued to the Participant. After
Shares are issued to the Participant, the Participant will be a stockholder and have all the rights
of a stockholder with respect to such Shares, including the right to vote and receive all dividends
or other distributions made or paid with respect to such Shares; provided, that if such
Shares are Restricted Stock, then any new, additional or different securities the Participant may
become entitled to receive with respect to such Shares by virtue of a stock dividend, stock split
or any other change in the corporate or capital structure of the Company will be subject to the
same restrictions as the Restricted Stock; provided, further, that the Participant
will have no right to retain such stock dividends or stock distributions with respect to Shares
that are repurchased at the Participant’s Purchase Price or Exercise Price pursuant to Section 12.

               12.2 Financial Statements. The Company will provide financial statements to each
Participant prior to such Participant’s purchase of Shares under this Plan, and to each Participant
annually during the period such Participant has Awards outstanding; provided,
however, the Company will not be required to provide such financial statements to
Participants whose services in connection with the Company assure them access to equivalent
information.

               12.3 Restrictions on Shares. At the discretion of the Committee, the Company may
reserve to itself and/or its assignee(s) in the Award Agreement a right to repurchase a portion of
or all Unvested Shares held by a Participant following such Participant’s Termination at any time
within ninety (90) days after the later of Participant’s Termination Date and the date Participant
purchases Shares under this Plan, for cash and/or cancellation of purchase money indebtedness, at
the Participant’s Exercise Price or Purchase Price, as the case may be.

          13. CERTIFICATES. All certificates for Shares or other securities delivered under
this Plan will be subject to such stock transfer orders, legends and other restrictions as the
Committee may deem necessary or advisable, including restrictions under any applicable federal,
state or foreign securities law, or any rules, regulations and other requirements of the SEC or any
stock exchange or automated quotation system upon which the Shares may be listed or quoted.

 

 

          14. ESCROW; PLEDGE OF SHARES. To enforce any restrictions on a Participant’s Shares,
the Committee may require the Participant to deposit all certificates representing Shares, together
with stock powers or other instruments of transfer approved by the Committee, appropriately
endorsed in blank, with the Company or an agent designated by the Company to hold in escrow until
such restrictions have lapsed or terminated, and the Committee may cause a legend or legends
referencing such restrictions to be placed on the certificates. Any Participant who is permitted
to execute a promissory note as partial or full consideration for the purchase of Shares under this
Plan will be required to pledge and deposit with the Company all or part of the Shares so purchased
as collateral to secure the payment of Participant’s obligation to the Company under the promissory
note; provided, however, that the Committee may require or accept other or
additional forms of collateral to secure the payment of such obligation and, in any event, the
Company will have full recourse against the Participant under the promissory note notwithstanding
any pledge of the Participant’s Shares or other collateral. In connection with any pledge of the
Shares, Participant will be required to execute and deliver a written pledge agreement in such form
as the Committee will from time to time approve. The Shares purchased with the promissory note may
be released from the pledge on a pro rata basis as the promissory note is paid.

          15. EXCHANGE AND BUYOUT OF AWARDS. The Committee may, at any time or from time to
time, authorize the Company, with the consent of the respective Participants, to issue new Awards
in exchange for the surrender and cancellation of any or all outstanding Awards. The Committee may
at any time buy from a Participant an Award previously granted with payment in cash, Shares
(including Restricted Stock) or other consideration, based on such terms and conditions as the
Committee and the Participant may agree.

          16. SECURITIES LAW AND OTHER REGULATORY COMPLIANCE. An Award will not be effective
unless such Award is in compliance with all applicable federal and state securities laws, rules and
regulations of any governmental body, and the requirements of any stock exchange or automated
quotation system upon which the Shares may then be listed or quoted, as they are in effect on the
date of grant of the Award and also on the date of exercise or other issuance. Notwithstanding any
other provision in this Plan, the Company will have no obligation to issue or deliver certificates
for Shares under this Plan prior to: (a) obtaining any approvals from governmental agencies that
the Company determines are necessary or advisable; and/or (b) completion of any registration or
other qualification of such Shares under any state or federal law or ruling of any governmental
body that the Company determines to be necessary or advisable. The Company will be under no
obligation to register the Shares with the SEC or to effect compliance with the registration,
qualification or listing requirements of any state securities laws, stock exchange or automated
quotation system, and the Company will have no liability for any inability or failure to do so.

 

 

          17. NO OBLIGATION TO EMPLOY. Nothing in this Plan or any Award granted under this
Plan will confer or be deemed to confer on any Participant any right to continue in the employ of,
or to continue any other relationship with, the Company or any Parent or Subsidiary of the Company
or limit in any way the right of the Company or any Parent or Subsidiary of the Company to
terminate Participant’s employment or other relationship at any time, with or without cause.

          18. CORPORATE TRANSACTIONS.

               18.1 Assumption or Replacement of Awards by Successor. In the event of (a) a
dissolution or liquidation of the Company, (b) 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 Awards granted under this Plan are assumed, converted or replaced by the successor corporation,
which assumption will be binding on all Participants), (c) 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, (d) the sale of substantially all of the assets of the Company, or (e) the acquisition,
sale, or transfer of more than 50% of the outstanding shares of the Company by tender offer or
similar transaction, any or all outstanding Awards (including without limitation Annual Grants
under Section 9) 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 Awards or provide substantially similar
consideration to Participants as was provided to stockholders (after taking into account the
existing provisions of the Awards). 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 Awards, as provided above,
pursuant to a transaction described in this Subsection 18.1, such Awards (including without
limitation Annual Grants under Section 9) 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 Awards granted
pursuant to this Plan will accelerate upon a transaction described in this Section 18. 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.

               18.2 Other Treatment of Awards. Subject to any greater rights granted to Participants
under the foregoing provisions of this Section 18, in the event of

 

 

the occurrence of any transaction described in Section 18.1, any outstanding Awards (including
without limitation Annual Grants under Section 9) will be treated as provided in the applicable
agreement or plan of merger, consolidation, dissolution, liquidation, or sale of assets.

               18.3 Assumption of Awards by the Company. 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 Award 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 Award 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 Award 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.

          19. ADOPTION AND STOCKHOLDER APPROVAL. This Plan will become effective on the date on
which the registration statement filed by the Company with the SEC under the Securities Act
registering the initial public offering of the Company’s Common Stock is declared effective by the
SEC (the “Effective Date”). This Plan shall be approved by the stockholders of the Company
(excluding Shares issued pursuant to this Plan), consistent with applicable laws, within twelve
(12) months before or after the date this Plan is adopted by the Board. Upon the Effective Date,
the Committee may grant Awards pursuant to this Plan; provided, however, that: (a)
no Option may be exercised prior to initial stockholder approval of this Plan; (b) no Option
granted pursuant to an increase in the number of Shares subject to this Plan approved by the Board
will be exercised prior to the time such increase has been approved by the stockholders of the
Company; (c) in the event that initial stockholder approval is not obtained within the time period
provided herein, all Awards granted hereunder shall be cancelled, any Shares issued pursuant to any
Awards shall be cancelled and any purchase of Shares issued hereunder shall be rescinded; and (d)
in the event that stockholder approval of such increase is not obtained within the time period
provided herein, all Awards granted pursuant to such increase will be cancelled, any Shares issued
pursuant to any Award granted pursuant to such increase will be cancelled, and any purchase of
Shares pursuant to such increase will be rescinded.

          20. TERM OF PLAN/GOVERNING LAW. Unless earlier terminated as provided herein, this
Plan will terminate ten (10) years from the date this Plan is adopted by the Board or, if earlier,
the date of stockholder approval. This Plan and all agreements thereunder shall be governed by and
construed in accordance with the laws of the State of California.

 

 

          21. AMENDMENT OR TERMINATION OF PLAN. The Board may at any time terminate or amend
this Plan in any respect, including without limitation amendment of any form of Award Agreement or
instrument to be executed pursuant to this Plan; provided, however, that the Board
will not, without the approval of the stockholders of the Company, amend this Plan in any manner
that requires such stockholder approval.

          22. NONEXCLUSIVITY OF THE PLAN. Neither the adoption of this Plan by the Board, the
submission of this Plan to the stockholders of the Company for approval, nor any provision of this
Plan will be construed as creating any limitations on the power of the Board to adopt such
additional compensation arrangements as it may deem desirable, including, without limitation, the
granting of stock options and bonuses otherwise than under this Plan, and such arrangements may be
either generally applicable or applicable only in specific cases.

          23. DEFINITIONS. As used in this Plan, the following terms will have the following
meanings:

               “Award” means any award under this Plan, including any Option, Restricted Stock or Stock
Bonus.

               “Award Agreement” means, with respect to each Award, the signed written agreement between the
Company and the Participant setting forth the terms and conditions of the Award.

               “Board” means the Board of Directors of the Company.

               “Cause” means the commission of an act of theft, embezzlement, fraud, dishonesty or a breach
of fiduciary duty to the Company or a Parent or Subsidiary of the Company.

               “Change of Control” means the consummation of any transaction or series of related
transactions which results in all of the holders of record of the Company’s capital stock
immediately prior to the transaction or transactions holding less than fifty percent (50%) of the
voting power of the surviving entity in the transaction or transactions immediately after the
transaction or transactions, including the acquisition of the Company by another entity and any
reorganization, merger or consolidation, or which results in the sale of all or substantially all
of the assets of the Company; provided, however, if the surviving entity in the
transaction or transactions is wholly owned by another entity, then a Change of Control has
occurred only if the holders of record of the Company’s capital stock immediately prior to the
transaction or transactions hold less than fifty percent (50%) of the voting power of the other
entity immediately after the transaction or transactions.

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

 

 

               “Committee” means the Compensation Committee of the Board.

               “Company” means Silicon Image, Inc. or any successor corporation.

               “Disability” means a disability, whether temporary or permanent, partial or total, as
determined by the Committee. For ISO purposes, “Disability” means a disability within the meaning
of Code Section 22(e)(3).

               “Eligible Director” means a member of the Board (1) who is not an employee of the Company or
any Parent, Subsidiary or Affiliate of the Company, and (2) whose direct pecuniary interest (as
defined by the SEC in Rule 16a-1 promulgated under the Exchange Act) in the Company’s Common Stock
is less than five percent (5%) of total shares of Common Stock outstanding.

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

               “Exercise Price” means the price at which a holder of an Option may purchase the Shares
issuable upon exercise of the Option.

               “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;
	 
	 	(d)	 	in the case of an Award made on the Effective Date, the price per
share at which shares of the Company’s Common Stock are initially offered for
sale to the public by the Company’s underwriters in the initial public offering
of the Company’s Common Stock pursuant to a registration statement filed with
the SEC under the Securities Act; or

 

 

	 	(e)	 	if none of the foregoing is applicable, by the Committee in good
faith.
	 
	 	 	 	“Family Member” includes any of the following:
	 
	 	(a)	 	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 of the Participant, including any such person with such
relationship to the Participant by adoption;
	 
	 	(b)	 	any person (other than a tenant or employee) sharing the
Participant’s household;
	 
	 	(c)	 	a trust in which the persons in (a) and (b) have more than
fifty percent of the beneficial interest;
	 
	 	(d)	 	a foundation in which the persons in (a) and (b) or the
Participant control the management of assets; or
	 
	 	(e)	 	any other entity in which the persons in (a) and (b) or the
Participant own more than fifty percent of the voting interest.

               “Insider” means an officer or director of the Company or any other person whose transactions
in the Company’s Common Stock are subject to Section 16 of the Exchange Act.

               “Option” means an award of an option to purchase Shares pursuant to Section 5.

               “Parent” means any corporation (other than the Company) in an unbroken chain of corporations
ending with the Company if each of such corporations other than the Company owns stock possessing
50% or more of the total combined voting power of all classes of stock in one of the other
corporations in such chain.

               “Participant” means a person who receives an Award under this Plan.

               “Performance Factors” means the factors selected by the Committee from among the following
measures to determine whether the performance goals established by the Committee and applicable to
Awards have been satisfied:

               (a) Net revenue and/or net revenue growth;

 

 

               (b) Earnings
before income taxes and amortization and/or earnings before income taxes and amortization growth;

               (c) Operating income and/or operating income growth;

               (d) Net income and/or net income growth;

               (e) Earnings per share and/or earnings per share growth;

               (f) Total stockholder return and/or total stockholder return growth;

               (g) Return on equity;

               (h) Operating cash flow return on income;

               (i) Adjusted operating cash flow return on income;

               (j) Economic value added; and

               (k) Individual confidential business objectives.

               “Performance Period” means the period of service determined by the Committee, not to exceed
five years, during which years of service or performance is to be measured for Restricted Stock
Awards or Stock Bonuses.

               “Plan” means this Silicon Image, Inc. 1999 Equity Incentive Plan, as amended from time to
time.

               “Restricted Stock Award” means an award of Shares pursuant to Section 6.

               “SEC” means the Securities and Exchange Commission.

               “Securities Act” means the Securities Act of 1933, as amended.

               “Shares” means shares of the Company’s Common Stock reserved for issuance under this Plan, as
adjusted pursuant to Sections 2 and 18, and any successor security.

               “Stock Bonus” means an award of Shares, or cash in lieu of Shares, pursuant to Section 7.

               “Subsidiary” means any corporation (other than the Company) in an unbroken chain of
corporations beginning with the Company if each of the corporations

 

 

other than the last corporation in the unbroken chain owns stock possessing 50% or more of the
total combined voting power of all classes of stock in one of the other corporations in such chain.

               “Termination” or “Terminated” means, for purposes of this Plan with respect to a Participant,
that the Participant has for any reason ceased to provide services as an employee, officer,
director, consultant, independent contractor, or advisor to the Company or a Parent or Subsidiary
of the Company. An employee will not be deemed to have ceased to provide services 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 Award while on leave from the employ of the
Company or a Subsidiary 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 a Participant has ceased to provide services and the
effective date on which the Participant ceased to provide services (the “Termination Date”).

               “Unvested Shares” means “Unvested Shares” as defined in the Award Agreement.

               “Vested Shares” means “Vested Shares” as defined in the Award Agreement.

 

 

THE SILICON IMAGE, INC.

1999 EQUITY INCENTIVE PLAN

SUB-PLAN FOR UK EMPLOYEES

	1.	 	The purpose of this Sub-Plan is to provide incentive for UK tax resident present and future
employees of Silicon Image, Inc. and its Parent or Subsidiaries through the grant of options
over Common Stock.
	 
	2.	 	This Sub-Plan is governed by the Silicon Image, Inc. 1999 Equity Incentive Plan (the “Plan”)
and all its provisions shall be identical to those of the Plan SAVE THAT no Awards shall be
made under the Sub-Plan other than to employees (including officers and directors who are also
employees) of the Company or of a Parent or Subsidiary of the Company.

 

 

	 	 	 
	 

	 	Silicon Image, Inc.
	 
	 	 
	Notice of Grant of Stock Options

	 	1060 E. Arques Ave.
	(for Optionees other than Non-Employee Directors

	 	Sunnyvale, CA 94085
	and Optionees based in the United Kingdom)
	 	 
	 
	 	 
	Optionee

	 	Option Number: «Number»
	«Name»

	 	Plan:                          1999
	 

	 	ID:                     «ID»
	You have been granted an option to buy Silicon Image, Inc. (the “Company”) Common Stock. The
pertinent details of your stock option grant are outlined below:
	 
	 	 

	 	 	 	 	 
	 

	 	Date of Grant:
	 	«Date»
	 
	 	 	 	 
	 

	 	Total Option Shares:
	 	«Shares»
	 
	 	 	 	 
	 

	 	Exercise Price Per Share:
	 	«Price»
	 
	 	 	 	 
	 

	 	First Vest Date:
	 	«M_1st_vest»
	 
	 	 	 	 
	 

	 	Expiration Date:
	 	Option will expire [immediately on termination for cause and]1
3 months following termination for any reason except death or disability, but in no
event later than «Expire».
	 

	 	 	 	(refer to Section 3 of the Stock Option Agreement)
	 
	 	 	 	 
	 

	 	Type of Stock Option:
	 	Nonqualified Stock Option

Vesting and Exercise Period:

Provided that you have continuously provided services to the Company, or any Parent or Subsidiary
(as those terms are defined in the Silicon Image, Inc. 1999 Equity Incentive Plan), this Option
shall vest and become exercisable as follows: (Vesting Schedule to be provided here)

Acceptance:

Optionee hereby acknowledges receipt of a copy of the Silicon Image, Inc. 1999 Equity
Incentive Plan (the “Plan”), Plan Prospectus and the Stock Option Agreement (the “Agreement”).
Please refer to the Plan and Plan Prospectus on our intranet website
at: Http://intranet under the
Finance Department/Stock Information tab. The Agreement is the contract that fixes the terms of
your option, including the purchase price and period over which your option can be exercised
(purchased). Optionee has read and understands the terms and provisions thereof, and accepts this
Option subject to all terms and conditions of the Plan and the Agreement. Optionee acknowledges
that there may be adverse tax consequences upon exercise of this Option or disposition of the
Shares, and that the Company has advised Optionee to consult a tax advisor prior to such exercise
or disposition.

Please accept this Notice of Grant of Stock Options. You are not obligated to purchase these
shares; Silicon Image requires that the acceptance of this document be on file prior to purchase of
the shares.

	 	 	 
	 

Silicon Image, Inc.

	 	 
	Robert R. Freeman, Chief Financial Officer
	 	 
	 
	 	 
	 

«Name»

	 	 

 

			
	1	 	Language in brackets may or may not
appear in individual option agreements.

 

 

SILICON IMAGE, INC.

1999 EQUITY INCENTIVE PLAN

STOCK OPTION AGREEMENT

(For Optionees other than Non-Employee Directors and Optionees based in the United Kingdom)

          This Stock Option Agreement (this “Agreement”) is made and entered into as of the Date of
Grant set forth in the Notice of Grant of Stock Options (the “Notice”) by and between Silicon
Image, Inc., a Delaware corporation (the “Company”), and the Optionee. Capitalized terms not
defined herein shall have the meanings ascribed to them in the Company’s 1999 Equity Incentive Plan
(the “Plan”).

          1. Grant of Option. The Company hereby grants to Optionee an option (this “Option”)
to purchase up to the total number of shares of Common Stock of the Company set forth in the Notice
as Total Option Shares (collectively, the “Shares”) at the Exercise Price Per Share (the “Exercise
Price”) set forth in the Notice, subject to the terms and conditions of this Agreement and the
Plan.

          2. Vesting; Exercise Period.

               2.1 Vesting of Shares. This Option shall be exercisable as it vests, unless otherwise
indicated in the Notice. Subject to the terms and conditions of the Plan and this Agreement, this
Option shall vest and become exercisable pursuant to the vesting schedule specified in the Notice.
This Option shall cease to vest upon Optionee’s Termination and Optionee shall in no event be
entitled under this Option to purchase a number of shares of the Company’s Common Stock greater
than the “Total Option Shares.”

               2.2 Vesting of Options. Shares that are vested pursuant to the schedule set forth in
the Notice are “Vested Shares.” Shares that are not vested pursuant to the schedule set forth in
the Notice are “Unvested Shares.”

               2.3 Expiration. This Option shall expire on the Expiration Date set forth in the
Notice and must be exercised, if at all, on or before the earlier of the Expiration Date or the
date on which this Option is terminated in accordance with the provisions of Section 3 hereof.

          3. Termination.

               3.1 Termination for Any Reason Except Death [,] [or] Disability [or
Cause].2 If Optionee is Terminated for any reason except Optionee’s Death[,] [or]
Disability [or Cause], then this Option, to the extent (and only to the extent) that it is vested
on the Termination Date, may be exercised by Optionee no later than three (3) months after the
Termination Date, but in no event later than the Expiration Date.

               3.2 Termination Because of Death or Disability. If Optionee is Terminated because of
Death or Disability of Optionee (or the Optionee dies within three (3)

 

			
	2	 	Language in brackets throughout this form may
or may not appear in individual option agreements.

 

 

months after Termination
other than for Disability [or Cause]), then this Option, to the extent that it is vested on the
Termination Date, may be exercised by Optionee (or Optionee’s legal representative or authorized
assignee) no later than twelve (12) months after the Termination Date, but in no event later than
the Expiration Date.

               [3.3 Termination for Cause. If Optionee is Terminated for Cause, this Option will
expire on the Optionee’s date of Termination.]

               3.4 No Obligation to Employ. Nothing in the Plan or this Agreement shall confer on
Optionee any right to continue in the employ of, or other relationship with, the Company or any
Parent or Subsidiary of the Company, or limit in any way the right of the Company or any Parent or
Subsidiary of the Company to terminate Optionee’s employment or other relationship at any time,
with or without Cause.

          4. Manner of Exercise.

               4.1 Stock Option Exercise Agreement. To exercise this Option, Optionee (or in the
case of exercise after Optionee’s death, Optionee’s legal representative or authorized assignee)
must deliver to the Company an executed stock option exercise agreement in the form attached hereto
as Exhibit A, or in such other form as may be approved by the Company from time to time
(the “Exercise Agreement”), which shall set forth, inter alia, Optionee’s election
to exercise this Option, the number of shares being purchased, any restrictions imposed on the
shares and any representations, warranties and agreements regarding Optionee’s investment intent
and access to information as may be required by the Company to comply with applicable securities
laws. If someone other than Optionee exercises this Option, then such person must submit
documentation reasonably acceptable to the Company that such person has the right to exercise this
Option.

               4.2 Limitations on Exercise. This Option may not be exercised unless such exercise is
in compliance with all applicable federal and state securities laws, as in effect on the date of
exercise. This Option may not be exercised for less than 100 Shares, unless it is exercised as to
all Shares then exercisable.

               4.3 Payment. The Exercise Agreement shall be accompanied by full payment of the
Exercise Price for the Shares being purchased. Payment may be in the form of cash (by check), or
where permitted by law:

	 	(a)	 	by cancellation of indebtedness of the Company to the Optionee;
	 
	 	(b)	 	by surrender of shares of the Company’s Common Stock that either: (1) have been
owned by Optionee for more than six (6) months and have been paid for within the meaning
of SEC Rule 144 (and, if such shares were purchased from the Company by use of a
promissory note, such note has been fully paid with respect to such shares); or (2) were
obtained by Optionee in the open public market; and (3) are clear of all liens,
claims, encumbrances or security interests;
	 
	 	(c)	 	by waiver of compensation due or accrued to Optionee for services rendered;

 

 

	 	(d)	 	provided that a public market for the Company’s stock exists: (1) through a
“same day sale” commitment from Optionee and a broker-dealer that is a member of the
National Association of Securities Dealers (an “NASD Dealer”), whereby Optionee
irrevocably elects to exercise this 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 (2) through a “margin” commitment from Optionee and an NASD Dealer, whereby
Optionee irrevocably elects to exercise this 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
	 
	 	(f)	 	by any combination of the foregoing.

               4.4 Tax Withholding. Prior to the issuance of the Shares upon exercise of this
Option, Optionee must pay or provide for any applicable federal or state withholding obligations.
If the Committee permits, Optionee may provide for payment of withholding taxes upon exercise of
this Option by requesting that the Company retain Shares with a Fair Market Value equal to the
minimum amount of taxes required to be withheld. In such case, the Company shall issue the net
number of Shares to the Optionee by deducting the Shares retained from the Shares issuable upon
exercise.

               4.5 Issuance of Shares. Provided that the Exercise Agreement and payment are in form
and substance satisfactory to counsel for the Company, the Company shall issue the Shares
registered in the name of Optionee, Optionee’s authorized
assignee, or Optionee’s legal representative, and shall deliver certificates representing the
Shares.

          5. Compliance with Laws and Regulations. The exercise of this Option and the issuance
and transfer of Shares shall be subject to compliance by the Company and Optionee with all
applicable requirements of federal and state securities laws and with all applicable requirements
of any stock exchange on which the Company’s Common Stock may be listed at the time of such
issuance or transfer. Optionee understands that the Company is under no obligation to register or
qualify the Shares with the Securities and Exchange Commission, any state securities commission or
any stock exchange to effect such compliance.

          6. Nontransferability of Option. This Option may not be transferred in any manner
other than under the terms and conditions of the Plan or by will or by the laws of descent and
distribution and may be exercised during the lifetime of Optionee only by Optionee. The terms of
this Option shall be binding upon the legal representative or authorized assignee of Optionee.

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

 

 

               7.1 Exercise of Nonqualified Stock Option. To the extent this Option does not qualify
as an Incentive Stock Option, there may be a regular federal income tax liability upon the exercise
of this Option. Optionee will be treated as having received compensation (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. The Company may 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 at the time of exercise.

               7.2 Disposition of Shares. The following tax consequences may apply upon disposition
of the Shares.

                    a. Nonqualified Stock Options. If the Shares are held for more than twelve (12)
months after the date of the transfer of the Shares pursuant to the exercise of a Non-Qualified
Stock Option, any gain realized on disposition of the Shares will be treated as a long-term capital
gain.

          8. Privileges of Stock Ownership. Optionee shall not have any of the rights of a
stockholder with respect to any Shares until the Shares are issued to Optionee.

          9. Interpretation. Any dispute regarding the interpretation of this Agreement shall
be submitted by Optionee or the Company to the Compensation Committee for review. The resolution
of such a dispute by the Committee shall be final and binding on the Company and Optionee.

          10. Entire Agreement. The Plan is incorporated herein by reference. This Agreement,
the Notice, the Plan and the Exercise Agreement constitute the entire agreement and understanding
of the parties hereto with respect to the subject matter hereof and supersede all prior
understandings and agreements with respect to such subject matter.

          11. Notices. Any notice required to be given or delivered to the Company under the
terms of this Agreement shall be in writing and addressed to the Corporate Secretary of the Company
at its principal corporate offices. Any notice required to be given or delivered to Optionee shall
be in writing and addressed to Optionee at the address indicated on the Notice or to such other
address as such party may designate in writing from time to time to the Company. All notices shall
be deemed to have been given or delivered upon: personal delivery; three (3) days after deposit in
the United States mail by certified or registered mail (return receipt requested); one (1) business
day after deposit with any return receipt express courier (prepaid); or one (1) business day after
transmission by facsimile.

          12. Successors and Assigns. The Company may assign any of its rights under this
Agreement. This Agreement shall be binding upon and inure to the benefit of the successors and
assigns of the Company. Subject to the restrictions on transfer set forth herein, this Agreement
shall be binding upon Optionee and Optionee’s legal representatives or authorized assignee.

 

 

          13. Governing Law. This Agreement shall be governed by and construed in accordance
with the internal laws of the State of California, without regard to that body of law pertaining to
choice of law or conflict of law.

 

 

No. «Number»

SILICON IMAGE, INC.

1999 EQUITY INCENTIVE PLAN

STOCK OPTION AGREEMENT

(For Non-Employee Directors)

          This Stock Option Agreement (this “Agreement”) is made and entered into as of the Date of
Grant set forth below (the “Date of Grant”) by and between Silicon Image, Inc., a Delaware
corporation (the “Company”), and the Optionee named below (“Optionee”). Capitalized terms not
defined herein shall have the meanings ascribed to them in the Company’s 1999 Equity Incentive Plan
(the “Plan”).

	 	 	 
	Optionee:

	 	«Name»
	 
	 	 
	Total Option Shares:

	 	«Shares»
	 
	 	 
	Exercise Price Per Share:

	 	«Price»
	 
	 	 
	Date of Grant:

	 	«Date»
	 
	 	 
	First Vest Date:

	 	«M_1st_vest»
	 
	 	 
	Expiration Date:

	 	Option will expire [immediately on termination
for cause and]1 3 months following
termination for any [other]reason
except death or disability, but in no event
later than «Expire».
	 

	 	(refer to Section 3 of this Stock Option Agreement)
	 
	 	 
	Type of Stock Option:

	 	Nonqualified Stock Option

          1. Grant of Option. The Company hereby grants to Optionee an option (this “Option”)
to purchase up to the total number of shares of Common Stock of the Company set forth above as
Total Option Shares (collectively, the “Shares”) at the Exercise Price Per Share set forth above
(the “Exercise Price”), subject to all of the terms and conditions of this Agreement and the Plan.

          2. Vesting; Exercise Period.

               2.1 Vesting of Shares. Subject to the terms and conditions of the Plan and this
Agreement, this Option shall become vested and exercisable with respect to
(for initial grants upon appointment or election to the Board: one forty-eighth (1/48)) (for annual
grants: one twenty-fourth (1/24)) of the Shares each month following the date of grant until fully
vested; provided, however, than an Annual Grant shall become fully vested immediately prior to the
consummation of a Change in Control.

 

			
	1	 	Language in brackets throughout this form may
or may not appear in individual option agreements.

 

 

          “Change of Control” means the consummation of any transaction or series of related
transactions which results in all of the holders of record of the Company’s capital stock
immediately prior to the transaction or transactions holding less than fifty percent (50%) of the
voting power of the surviving entity in the transaction or transactions immediately after the
transaction or transactions, including the acquisition of the Company by another entity and any
reorganization, merger or consolidation, or which results in sale of all or substantially all of
the assets of the Company; provided, however, if the surviving entity in the transaction or
transactions is wholly owned by another entity, then a Change of Control has occurred only if the
holders of record of the Company’s capital stock immediately prior to the transactions or
transactions hold less than fifty percent (50%) of the voting power of the other entity immediately
after the transaction or transactions.

               2.2 Expiration. This Option shall expire on the Expiration Date set forth above and
must be exercised, if at all, on or before the earlier of the Expiration Date or the date on which
this Option is earlier terminated in accordance with the provisions of Section 3 hereof.

          3. Termination. Except as provided below in this Section, this Option shall terminate
and may not be exercised if Optionee ceases to be a member of the Board of Directors of the Company
(“Board Member”). The date on which Optionee ceases to be a Board Member shall be referred to as
the “Termination Date.”

               3.1 Termination for Any Reason Except Death [,] [or] Disability [or Cause].
If Optionee ceases to be a Board Member for any reason except death [,] [or] Disability [or
Cause], then this Option may be exercised by Optionee no later than three (3) months after
the Termination Date, but in any event no later than the Expiration Date.

               3.2 Termination Because of Death or Disability. If Optionee ceases to be a Board
Member due to Optionee’s death or Disability (or dies within 3 months after Termination other than
[for Cause or] because of Disability), then this Option may be exercised by Optionee (or
Optionee’s legal representative or authorized assignee) no later than twelve (12) months after the
Termination Date, but in any event no later than the Expiration Date.

               [3.3 Termination for Cause. If Optionee is Terminated for Cause, this Option will
expire on the Optionee’s date of termination.]

          4. Manner of Exercise.

     4.1 Stock Option Exercise Agreement. To exercise this Option, Optionee (or in the
case of exercise after Optionee’s death, Optionee’s executor, administrator, heir or legatee, as
the case may be) must deliver to the Company an executed stock option exercise agreement in the
form attached hereto as Exhibit A, or in such other form as may be approved by the Company
from time to time (the “Exercise Agreement”), which shall set forth, inter alia,
Optionee’s election to exercise this Option, the number of shares being purchased, any restrictions
imposed on the Shares and any representations, warranties and agreements regarding Optionee’s
investment intent and access to information as may be required by the Company to comply with
applicable securities laws. If someone other than Optionee exercises this Option, then such person
must submit documentation reasonably acceptable to the Company that such person has the right to
exercise this Option.

 

 

               4.2 Limitations on Exercise. This Option may not be exercised unless such exercise is
in compliance with all applicable federal and state securities laws, as they are in effect on the
date of exercise. This Option may not be exercised as to fewer than 100 Shares unless it is
exercised as to all Shares as to which this Option is then exercisable.

               4.3 Payment. The Exercise Agreement shall be accompanied by full payment of the
Exercise Price for the Shares being purchased in cash (by check), or where permitted by law:

	 	(a)	 	by cancellation of indebtedness of the Company to the Optionee;
	 
	 	(b)	 	by surrender of shares of the Company’s Common Stock that either: (1) have been
owned by Optionee for more than six (6) months and have been paid for within the meaning
of SEC Rule 144 (and, if such shares were purchased from the Company by use of a
promissory note, such note has been fully paid with respect to such shares); or (2) were
obtained by Optionee in the open public market; and (3) are clear of all liens,
claims, encumbrances or security interests;
	 
	 	(c)	 	by waiver of compensation due or accrued to Optionee for services rendered;
	 
	 	(d)	 	provided that a public market for the Company’s stock exists: (1) through a
“same day sale” commitment from Optionee and a broker-dealer that is a member of the
National Association of Securities Dealers (an “NASD Dealer”) whereby Optionee
irrevocably elects to exercise this 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 (2) through a
“margin” commitment from Optionee and an NASD Dealer whereby Optionee irrevocably
elects to exercise this 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;
	 
	 	(f)	 	by any combination of the foregoing.

               4.4 Tax Withholding. Prior to the issuance of the Shares upon exercise of this
Option, Optionee must pay or provide for any applicable federal or state withholding obligations of
the Company. If the Committee permits, Optionee may provide for payment of withholding taxes upon
exercise of this Option by requesting that the Company retain Shares with a Fair Market Value equal
to the minimum amount of taxes required to be withheld. In such case, the Company shall issue the
net number of Shares to the Optionee by deducting the Shares retained from the Shares issuable upon
exercise.

               4.5 Issuance of Shares. Provided that the Exercise Agreement and payment are in form
and substance satisfactory to counsel for the Company, the Company shall issue the Shares
registered in the name of Optionee, Optionee’s authorized assignee, or

 

 

Optionee’s legal
representative, and shall deliver certificates representing the Shares with the appropriate legends
affixed thereto.

          5. Compliance with Laws and Regulations. The exercise of this Option and the issuance
and transfer of Shares shall be subject to compliance by the Company and Optionee with all
applicable requirements of federal and state securities laws and with all applicable requirements
of any stock exchange on which the Company’s Common Stock may be listed at the time of such
issuance or transfer. Optionee understands that the Company is under no obligation to register or
qualify the Shares with the SEC, any state securities commission or any stock exchange to effect
such compliance.

          6. Nontransferability of Option. This Option may not be transferred in any manner
other than under the terms and conditions of the Plan or by will or by the laws of descent and
distribution and may be exercised during the lifetime of Optionee only by Optionee. The terms of
this Option shall be binding upon the executors, administrators, successors and assigns of
Optionee.

          7. Tax Consequences. Set forth below is a brief summary as of the date the Board
adopted the Plan of some of the federal 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 ADVISOR BEFORE EXERCISING THIS OPTION OR
DISPOSING OF THE SHARES.

               7.1 Exercise of Nonqualified Stock Option. There may be a regular federal income tax
liability upon the exercise of this Option. 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. The Company may 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 at the
time of exercise.

               7.2 Disposition of Shares. If the Shares are held for more than twelve (12) months
after the date of the transfer of the Shares pursuant to the exercise of an NQSO, any gain realized
on disposition of the Shares will be treated as long-term capital gain.

          8. Privileges of Stock Ownership. Optionee shall not have any of the rights of a
stockholder with respect to any Shares until the Shares are issued to Optionee.

          9. Interpretation. Any dispute regarding the interpretation of this Agreement shall
be submitted by Optionee or the Company to the Committee for review. The resolution of such a
dispute by the Committee shall be final and binding on the Company and Optionee.

          10. Entire Agreement. The Plan is incorporated herein by reference. This Agreement
and the Plan and the Exercise Agreement constitute the entire agreement and understanding of the
parties hereto with respect to the subject matter hereof and supersede all prior understandings and
agreements with respect to such subject matter.

 

 

          11. Notices. Any notice required to be given or delivered to the Company under the
terms of this Agreement shall be in writing and addressed to the Corporate Secretary of the Company
at its principal corporate offices. Any notice required to be given or delivered to Optionee shall
be in writing and addressed to Optionee at the address indicated above or to such other address as
such party may designate in writing from time to time to the Company. All notices shall be deemed
to have been given or delivered upon: personal delivery; three (3) days after deposit in the
United States mail by certified or registered mail (return receipt requested); one (1) business day
after deposit with any return receipt express courier (prepaid); or one (1) business day after
transmission by facsimile.

          12. Successors and Assigns. The Company may assign any of its rights under this
Agreement. This Agreement shall be binding upon and inure to the benefit of the successors and
assigns of the Company. Subject to the restrictions on transfer set forth herein, this Agreement
shall be binding upon Optionee and Optionee’s heirs, executors, administrators, legal
representatives, successors and assigns.

          13. Governing Law. This Agreement shall be governed by and construed in accordance
with the internal laws of the State of California, without regard to that body of law pertaining to
choice of law or conflict of law.

          14. Acceptance. Optionee hereby acknowledges receipt of a copy of the Plan and this
Agreement. Optionee has read and understands the terms and provisions thereof, and accepts this
Option subject to all the terms and conditions of the Plan and this Agreement. Optionee
acknowledges that there may be adverse tax consequences upon exercise of this Option or disposition
of the Shares and that the Company has advised Optionee to consult a tax advisor prior to such
exercise or disposition.

     IN WITNESS WHEREOF, the Company has caused this Agreement to be executed in duplicate by its
duly authorized representative and Optionee has executed this Agreement in duplicate as of the Date
of Grant.

	 	 	 
	SILICON IMAGE, INC.

	 	OPTIONEE
	 
	 	 
	 

	 	 
	Robert R. Freeman

	 	«Name»
	Chief Financial Officer
	 	 

 

 

EXHIBIT A

Silicon Image, Inc.

Stock Option Exercise Notice

(for Optionees not based in the United Kingdom)

	 	 	 
	 	 	 
	 
	1. You must submit this form to Stock Administration prior to contacting your broker.
	 
	 	 
	I am exercising my Silicon Image stock options as follows:
	 
	 	 
	(A) Grant/Option #:                                        

	 	(B) Total # of Shares to Exercise:                                        
	 
	 	 
	(C) Cost per Share: $                                         

	 	(D) Total Exercise Cost (B) X (C): $                                        
	 
	 	 
	(E) Grant Type (circle one): ISO      NQ

	 	(F) Tax Amount Due if NQ: $                                                            
	 

	 	Please leave NQ tax amount blank
—
	 

	 	Stock Administration will calculate, if applicable.
	 
	 	 
	(G) Exercise Date:

	 	(H) Are any of these shares unvested? YES  NO
	(a) Please leave exercise date blank for methods regarding an

	 	If yes, please consult with your tax advisor
	1 & 2 — Stock Administration will complete
when transaction is complete.

	 	83(b) election which must be made and filed with the IRS

within 30 days of exercise. See Stock Administration for an election
form.
	 
	 	 
	Please indicate the transaction method below. See reverse side of this form for a brief
explanation of each method.

	 	 	 
	                     Method 1

	 	SAME DAY SALE You must contact a Silicon Image designated
broker to place this trade.
Please indicate which broker you have selected below.
	 
	 	 
	                     Method 2

	 	SELL TO COVER I am
exercising
                     shares, but want to sell only                      shares.
The balance will be deposited in the account I’ve designated below. You must
contact a Silicon
Image designated broker to place this trade. Please indicate which broker you
have selected below.
	 
	 	 
	                     Method 3

	 	EXERCISE & HOLD Please attach a personal check, made
payable to Silicon Image for the amounts indicated in items (D) and (F) above. Please indicate below where you would like your
stock certificate to be mailed.

	 	 	 	 	 
	 

	 	Broker Name	 	 
	 

	 	 	 	 
	 

	 	Broker Address	 	 
	 

	 	 	 	 
	 
	 

	 	 	 	 
	 

	 	Account #	 	 
	 

	 	 	 	 
	 
	 	 	 	 	 

	 	 	 
	                     Credit Suisse First Boston

	 	Account #                                                    (415) 249-2258
	                     Deutsche Bank Alex Brown

	 	Account #                                                    (415) 617-3252
	                     E*Trade/OptionsLink

	 	It is not necessary to complete
this form — please go to
	 

	 	www.etrade.com or
www.optionslink.com
	 

	 	or call (800) 838-0908 to complete your trade.
	 
	 	 	 	 	 

I authorize the broker to remit funds to Silicon Image to pay for this exercise and any
applicable taxes and I understand that the shares will be sent directly to the broker address I
have indicated above. I acknowledge receipt of the prospectus covering shares of common stock
offered to optionees under the Company’s Stock Option Plan. The Plan and Option Agreement are
incorporated herein by reference. The Exercise Agreement, the Plan and Option Agreement constitute
the entire agreement and understanding of the parties and supercede in their entirety all prior
understandings and agreements of the Company and Optionee with respect to the subject matter
hereof. I UNDERSTAND THAT I MAY SUFFER ADVERSE TAX CONSEQUENCES AS A RESULT OF THE PURCHASE OR
DISPOSITION OF THESE SHARES. I HAVE CONSULTED WITH ANY TAX CONSULTANT(S) I DEEM ADVISABLE IN
CONNECTION WITH THE PURCHASE OR DISPOSITION OF THE SHARES AND CERTIFY THAT I AM NOT RELYING ON THE
COMPANY FOR TAX ADVICE. ___ (Initial here)

	 	 	 	 	 	 	 
	 	 	 
	First Name

	 	Middle Initial
	 	Last Name
	 	Signature
	 
	 	 	 	 	 	 
	 

	 	 	 	 
	 	 
	 
	 	 	 	 	 	 
	Social Security #

	 	 	 	Employee ID #
	 	Phone Number
	 
	 	 	 	 	 	 
	 
	Current Address
	 	 	 	 	 	 

 

 

EXHIBIT A

Silicon Image, Inc.

Stock Option Exercise Notice

(for Optionees not based in the United Kingdom)

 

NOTE FOR NON-QUALIFIED (NQ) OPTIONS ONLY — Tax is required to be withheld or collected upon
exercise of all non-qualified stock options. The tax is based on the spread between the sale price
(closing fair market value if not same day sale) and the exercise price multiplied by 35.75% (25%
federal; 9.3% CA state; 1.45% Medicare). In addition, Social Security tax may be withheld or
collected depending on what you have paid year to date.

 

Method 1 — SAME DAY SALE

You are selling all vested shares as indicated on the Exhibit A.

Method 2 — SELL TO COVER

You want to exercise vested shares and sell a portion of these shares to cover the cost and
applicable taxes of all the exercised shares. The balance of unsold shares will be deposited into
your brokerage account for future sale.

Method 3 — EXERCISE & HOLD

You only want to exercise (purchase) the shares in order to sell them at a later date.

 

	 	 	 
	 Silicon Image Designated Brokers
	 	 
	 
	 	 
	Credit Suisse First Boston

	 	Morgan Stanley
	Private Client Services

	 	101 California St
	650 California St., 31st Floor

	 	San Francisco, CA
	San Francisco, CA 94108

	 	(800) 248-3565
	Suzette Callejo (415) 249-2258

	 	Jesse Bromberg (415) 693-6876
	Fax — (415) 395-1402
	 	 
	 
	 	 
	E*Trade/OptionsLink

	 	Deutsche Bank Alex. Brown
	P.O. Box 989032

	 	101 California Street, 46th Floor
	West Sacramento, CA 95798-9858

	 	San Francisco, CA 94111
	www.etrade.com
or www.optionslink.com

	 	Cheryl Nobusada (415) 617-3252
	(800) 838-0908 (press “#0” for service representative)

	 	Fax — (415) 617-4270
	(650) 599-0125 (from outside the United States)
	 	 

 

 

 

	 	 	 
	 

	 	Silicon Image, Inc.
	 
	 	 
	Notice of Grant of Stock Options

	 	1060 E. Arques Ave.
	(for Optionees based in the United Kingdom)

	 	Sunnyvale, CA 94086
	 
	 	 
	Optionee

	 	Option Number: «Number»
	«Name»

	 	Plan:                               1999
	 

	 	ID:                                    «ID»

You have been granted an option to buy Silicon Image, Inc. (the “Company”) Common Stock. The
pertinent details of your stock option grant are outlined below:

	 	 	 	 	 
	 

	 	Date of Grant:
	 	«Date»
	 
	 	 	 	 
	 

	 	Total Option Shares:
	 	«Shares»
	 
	 	 	 	 
	 

	 	Exercise Price Per Share:
	 	«Price»
	 
	 	 	 	 
	 

	 	First Vest Date:
	 	«M_1st_vest»
	 
	 	 	 	 
	 

	 	Expiration Date:
	 	Option will expire
[immediately on termination for cause and]1
3 months following termination for any reason except death or disability, but in no
event later than «Expire».
	 

	 	 	 	(refer to Section 3 of the Stock Option Agreement)
	 
	 	 	 	 
	 

	 	Type of Stock Option:
	 	Nonqualified Stock Option

Vesting and Exercise Period:

Provided that you have continuously provided services to the Company, or any Parent or Subsidiary
(as those terms are defined in the UK Sub-Plan of the Silicon Image, Inc. 1999 Equity Incentive
Plan), this Option shall vest and become exercisable as follows: (Vesting Schedule to be
provided here)

Acceptance:

Optionee hereby acknowledges receipt of a copy of the UK Sub-Plan of the Silicon Image, Inc.
1999 Equity Incentive Plan (the “Sub-Plan”), Plan Prospectus and the Stock Option Agreement (the
“Agreement”). Please refer to the Sub-Plan and Plan Prospectus on our intranet website at
Http://intranet under the Finance Department/Stock Information tab. The Agreement is the contract
that fixes the terms of your option, including the purchase price and period over which your option
can be exercised (purchased). Optionee has read and understands the terms and provisions thereof,
and accepts this Option subject to all terms and conditions of the Sub-Plan, the Agreement and
understands exercise is also conditioned on execution of the Joint Election. Optionee acknowledges
that there may be adverse tax consequences upon exercise of this Option or disposition of the
Shares, and that the Company has advised Optionee to consult a tax advisor prior to such exercise
or disposition.

Please sign this Notice of Grant of Stock Options and return it to stock administration.
Please retain for your files the copy of this notice stapled to the stock option agreement. You
are not obligated to purchase these shares; stock administration requires that this document be on
file prior to purchase of the shares.

	 	 	 
	 
 
	Silicon Image, Inc.

	 	 
	Steve Tirado, President and CEO
	 	 
	 
	 	 
	 

«Name»

	 	 

 

			
	1	 	Language in brackets may or may not
appear in individual option agreements.

 

 

SILICON IMAGE, INC.

UK SUB-PLAN OF THE 1999 EQUITY INCENTIVE PLAN

STOCK OPTION AGREEMENT

(For Optionees based in the United Kingdom)

          This Stock Option Agreement (this “Agreement”) is made and entered into as of the Date of
Grant set forth in the Notice of Grant of Stock Options (the “Notice”) by and between Silicon
Image, Inc., a Delaware corporation (the “Company”), and the Optionee. Capitalized terms not
defined herein shall have the meanings ascribed to them in the UK Sub-Plan of the Company’s 1999
Equity Incentive Plan (the “Plan”).

          1. Grant of Option. The Company hereby grants to Optionee an option (this “Option”)
to purchase up to the total number of shares of Common Stock of the Company set forth in the Notice
as Total Option Shares (collectively, the “Shares”) at the Exercise Price Per Share (the “Exercise
Price”) set forth in the Notice, subject to the terms and conditions of this Agreement, the
Sub-Plan and the Joint Election (as defined in section 7 of this Agreement).

          2. Vesting; Exercise Period.

               2.1 Vesting of Shares. This Option shall be exercisable as it vests, unless otherwise
indicated in the Notice. Subject to the terms and conditions of the Sub-Plan and this Agreement,
this Option shall vest and become exercisable pursuant to the vesting schedule specified in the
Notice. This Option shall cease to vest upon Optionee’s Termination and Optionee shall in no
event be entitled under this Option to purchase a number of shares of the Company’s Common Stock
greater than the “Total Option Shares.”

               2.2 Vesting of Options. Shares that are vested pursuant to the schedule set forth in
the Notice are “Vested Shares.” Shares that are not vested pursuant to the schedule set forth in
the Notice are “Unvested Shares.”

               2.3 Expiration. This Option shall expire on the Expiration Date set forth in the
Notice and must be exercised, if at all, on or before the earlier of the Expiration Date or the
date on which this Option is terminated in accordance with the provisions of Section 3 hereof.

          3. Termination.

               3.1 Termination for Any Reason Except Death [,] [or] Disability [or
Cause].2 If Optionee is Terminated for any reason except Optionee’s Death[,] [or]
Disability [or Cause], then this Option, to the extent (and only to the extent) that it is vested
on the Termination Date, may be exercised by Optionee no later than three (3) months after the
Termination Date, but in no event later than the Expiration Date.

               3.2 Termination Because of Death or Disability. If Optionee is Terminated because of
Death or Disability of Optionee (or the Optionee dies within three (3) months after Termination
other than for Disability [or Cause]), then this Option, to the extent that

 

			
	2	 	Language in brackets may or may not
appear in individual option agreements.

 

 

Silicon Image, Inc.

Stock Option Agreement

1999 Equity Incentive Plan

it is vested on the
Termination Date, may be exercised by Optionee (or Optionee’s legal
representative or authorized assignee) no later than twelve (12) months after the Termination Date,
but in no event later than the Expiration Date.

               [3.3 Termination for Cause. If Optionee is Terminated for Cause, this Option will
expire on the Optionee’s date of Termination.]

               3.4 No Obligation to Employ. Nothing in the Sub-Plan or this Agreement shall confer
on Optionee any right to continue in the employ of, or other relationship with, the Company or any
Parent or Subsidiary of the Company, or limit in any way the right of the Company or any Parent or
Subsidiary of the Company to terminate Optionee’s employment or other relationship at any time,
with or without Cause.

          4. Manner of Exercise.

               4.1 Stock Option Exercise Agreement. To exercise this Option, Optionee (or in the
case of exercise after Optionee’s death, Optionee’s legal representative or authorized assignee)
must deliver to the Company an executed stock option exercise agreement in the form attached hereto
as Exhibit A, or in such other form as may be approved by the Company from time to time
(the “Exercise Agreement”), which shall set forth, inter alia, Optionee’s election
to exercise this Option, the number of shares being purchased, any restrictions imposed on the
shares and any representations, warranties and agreements regarding Optionee’s investment intent
and access to information as may be required by the Company to comply with applicable securities
laws. If someone other than Optionee exercises this Option, then such person must submit
documentation reasonably acceptable to the Company that such person has the right to exercise this
Option.

               4.2 Section 431 Election. The Exercise Agreement shall be accompanied by a Section
431, Income Tax (Earnings & Pensions) Act 2003 election, in the form attached hereto as Exhibit B,
or such other form as required by the UK Inland Revenue from time to time.

               4.3 Limitations on Exercise. This Option may not be exercised unless such exercise is
in compliance with all applicable federal and state securities laws, as in effect on the date of
exercise. This Option may not be exercised for less than 100 Shares, unless it is exercised as to
all Shares then exercisable.

               4.4 Payment. The Exercise Agreement shall be accompanied by full payment of the
Exercise Price for the Shares being purchased. Payment may be in the form of cash (by cheque), or
where permitted by law:

	 	(a)	 	by cancellation of indebtedness of the Company to the Optionee;
	 
	 	(b)	 	by surrender of shares of the Company’s Common Stock that either: (1) have been
owned by Optionee for more than six (6) months and have been paid for within the meaning
of SEC Rule 144 (and, if such shares were purchased from the Company by use of a
promissory note, such note has been fully paid with respect to such

 

 

Silicon Image, Inc.

Stock Option Agreement

1999 Equity Incentive Plan

	 	 	 	shares); or (2) were
obtained by Optionee in the open public market; and (3) are clear of all liens,
claims, encumbrances or security interests;
	 
	 	(c)	 	by waiver of compensation due or accrued to Optionee for services rendered;
	 
	 	(d)	 	provided that a public market for the Company’s stock exists: (1) through a
“same day sale” commitment from Optionee and a broker-dealer that is a member of the
National Association of Securities Dealers (an “NASD Dealer”), whereby Optionee
irrevocably elects to exercise this 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 (2) through a “margin” commitment from Optionee and an NASD Dealer, whereby
Optionee irrevocably elects to exercise this 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
	 
	 	(f)	 	by any combination of the foregoing.

               4.5 Tax Withholding. Prior to the issuance of the Shares upon exercise of this
Option, Optionee must pay or provide for any Option Tax Liability (as defined in section 6 of this
Agreement). Payment of any liability arising under the terms of the Joint Election shall be
payable in accordance with the terms of the Joint Election.

               4.6 Issuance of Shares. Provided that the Exercise Agreement and payment are in form
and substance satisfactory to counsel for the Company, the Company shall issue the Shares
registered in the name of Optionee, Optionee’s authorized assignee, or Optionee’s legal
representative, and shall deliver certificates representing the Shares.

          5. Tax Consequences. The Optionee should obtain advice from an appropriate
independent professional adviser in relation to the United Kingdom taxation implications of the
grant, exercise, assignment, release, cancellation or any other disposal of this Option (the
“Trigger Event”) pursuant to the Sub-Plan and on any subsequent sale of the Shares. The Optionee
should also take advice in respect of the United Kingdom taxation indemnity provisions comprising
sections 6a and 6b below.

 

 

Silicon Image, Inc.

Stock Option Agreement

1999 Equity Incentive Plan

          6. Optionee’s Taxation Indemnity.

               (a) To the extent permitted by law, the Optionee hereby agrees to indemnify and keep
indemnified the Company and the Company as trustee for and on behalf of any related corporation, in
respect of any liability or obligation of the Company and/or any related corporation to account for
income tax (under PAYE) or any other taxation provisions and primary class 1 National Insurance
Contributions (“NICs”) in the United Kingdom to the extent arising from a Trigger Event or arising
out of the acquisition, retention and disposal of the Shares acquired pursuant to this Option.

               (b) The Company shall not be obliged to allot and issue any Shares or any interest in Shares
pursuant to the exercise of the Option unless and until the Optionee has paid to the Company such
sum as is, in the opinion of the Company, sufficient to indemnify the Company in full against any
liability the Company has to account to the Inland Revenue for any amount of, or representing,
income tax and/or primary NICs (the “Option Tax Liability”), or the Optionee has made such other
arrangement as in the opinion of the Company will ensure that the full amount of any Option Tax
Liability will be recovered from the Optionee within such period as the Company may then determine.

               (c) In the absence of any such other arrangement being made, the Company shall have the right
to retain out of the aggregate number of shares to which the Optionee would have otherwise been
entitled upon the exercise of an Option, such number of Shares as, in the opinion of the Company,
will enable the Company to sell as agent for the Optionee (at the best price which can reasonably
expect to be obtained at the time of the sale) and to pay over to the Company sufficient monies out
of the net proceeds of sale, after deduction of all fees, commissions and expenses incurred in
relation to such sale, to satisfy the Optionee’s liability under such indemnity.

          7. Employer’s NICs. As a condition on exercise of this Option the Optionee shall join
with the Company, or if and to the extent that there is a change in the law, any other company or
person who is or becomes a secondary contributor for NIC purposes in respect of this Option (the
“Secondary Contributor”) in making an election (in such terms and such form as provided in
paragraphs 3A and 3B of Schedule 1 to the Social Security Contributions and Benefits Act 1992 which
has been approved by the Inland Revenue (the “Joint Election”), for the transfer of the whole or
any liability of the Secondary Contributor to Employer’s Class 1 NICs to the Optionee.

          8. Compliance with Laws and Regulations. The exercise of this Option and the issuance
and transfer of Shares shall be subject to compliance by the Company and Optionee with all
applicable requirements of federal and state securities laws and with all applicable requirements
of any stock exchange on which the Company’s Common Stock may be listed at the time of such
issuance or transfer. Optionee understands that the Company is under no obligation to register or
qualify the Shares with the Securities and Exchange Commission, any state securities commission or
any stock exchange to effect such compliance.

          9. Nontransferability of Option. This Option may not be transferred in any manner
other than under the terms and conditions of the Sub-Plan or by will or by the laws of

 

 

Silicon Image, Inc.

Stock Option Agreement

1999 Equity Incentive Plan

descent and
distribution and may be exercised during the lifetime of Optionee only by Optionee.
The terms of this Option shall be binding upon the legal representative or authorized assignee of
Optionee.

          10. Privileges of Stock Ownership. Optionee shall not have any of the rights of a
stockholder with respect to any Shares until the Shares are issued to Optionee.

          11. Data Protection.

               (a) In order to facilitate the administration of the Sub-Plan, it will be necessary for
Silicon Image UK Limited (or its payroll administrators) to collect, hold and process certain
personal information about the Optionee and to transfer this data to the Company and to certain
third parties such as brokers with whom the Optionee may elect to deposit any Shares acquired under
the Sub-Plan. The Optionee consents to Silicon Image UK Limited (or its payroll administrators)
collecting, holding and processing its personal data and transferring this data to the Company or
any other third parties insofar as is reasonably necessary to implement, administer and manage the
Sub-Plan.

               (b) Where the transfer is to be to a destination outside the European Economic Area, the
Company shall take reasonable steps to ensure that the Optionee’s personal data continues to be
adequate protected and securely held.

               (c) The Optionee understands that the Optionee may, at any time, view its personal data,
require any necessary corrections to it or withdraw the consents herein in writing by contacting
the Human Resources Department of the Company (but acknowledges that without the use of such data
it may not be practicable for Silicon Image UK Limited and the Company to administer the Optionee’s
involvement in the Sub-Plan in a timely fashion or at all and this may be detrimental to the
Optionee.

          12. Interpretation. Any dispute regarding the interpretation of this Agreement shall
be submitted by Optionee or the Company to the Compensation Committee for review. The resolution
of such a dispute by the Committee shall be final and binding on the Company and Optionee.

          13. Entire Agreement. The Sub-Plan is incorporated herein by reference. This
Agreement, the Notice, the Sub-Plan, the Joint Election and the Exercise Agreement constitute the
entire agreement and understanding of the parties hereto with respect to the subject matter hereof
and supersede all prior understandings and agreements with respect to such subject matter.

          14. Notices. Any notice required to be given or delivered to the Company under the
terms of this Agreement shall be in writing and addressed to the Corporate Secretary of the Company
at its principal corporate offices. Any notice required to be given or delivered to Optionee shall
be in writing and addressed to Optionee at the address indicated on the Notice or to such other
address as such party may designate in writing from time to time to the Company. All notices shall
be deemed to have been given or delivered upon: personal delivery; three (3) days after deposit in
the United States mail or Royal Mail by certified or registered mail (return receipt requested);
one (1) business day after deposit with any return receipt express courier (prepaid); or one (1)
business day after transmission by facsimile.

 

 

Silicon Image, Inc.

Stock Option Agreement

1999 Equity Incentive Plan

          15. Successors and Assigns. The Company may assign any of its rights under this
Agreement. This Agreement shall be binding upon and inure to the benefit of the successors and
assigns of the Company. Subject to the restrictions on transfer set forth herein, this Agreement
shall be binding upon Optionee and Optionee’s legal representatives or authorized assignee.

          16. NO GUARANTEE OF CONTINUED SERVICE. OPTIONEE ACKNOWLEDGES AND AGREES THAT THE
VESTING OF SHARES PURSUANT TO THE VESTING SCHEDULE HEREOF IS EARNED ONLY BY CONTINUING AS A
EMPLOYEE AT THE WILL OF THE COMPANY (AND NOT THROUGH THE ACT OF BEING HIRED, BEING GRANTED AN
OPTION OR PURCHASING SHARES HEREUNDER). OPTIONEE FURTHER ACKNOWLEDGES AND AGREES THAT THIS
AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREUNDER AND THE VESTING SCHEDULE SET FORTH HEREIN DO NOT
CONSTITUTE AN EXPRESS OR IMPLIED PROMISE OF CONTINUED ENGAGEMENT AS A SERVICE PROVIDER FOR THE
VESTING PERIOD, FOR ANY PERIOD, OR AT ALL, AND SHALL NOT INTERFERE WITH OPTIONEE’S RIGHT OR THE
COMPANY’S RIGHT TO TERMINATE OPTIONEE’S RELATIONSHIP AS A SERVICE PROVIDER AT ANY TIME, WITH OR
WITHOUT CAUSE.

          13. Governing Law. This Agreement shall be governed by and construed in accordance
with the internal laws of the State of California, without regard to that body of law pertaining to
choice of law or conflict of law.

This Option Agreement has been executed and delivered as a deed on the date written above.

SIGNED as a Deed

	 	 	 	 	 	 	 
	by

	 	 	 	in the presence of:	 	 
	 

	 	 

	 	 	 	 
	 

	 	 	 	Witness signature:	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Address:	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Occupation:	 	 

SIGNED as a DEED

By SILICON IMAGE, INC.acting by the under-mentioned person(s) acting on the authority
of the Company in accordance with the laws of the territory of its incorporation:

	 	 	 
	 

	 	 
	 

	 	Steve Tirado, President & CEO

 

 

Silicon Image, Inc.

Stock Option Agreement

1999 Equity Incentive Plan

EXHIBIT A

EXERCISE AGREEMENT

Silicon Image, Inc.

Stock Option Exercise Notice

(for Optionees based in the United Kingdom)

You must submit this form to Stock Administration prior to contacting your broker.

 

	 	 	 
	I am exercising my Silicon Image stock options as follows:
	 
	 	 
	(A) Grant/Option #:                                        

	 	(B) Total # of Shares to Exercise:                                         
	 
	 	 
	(C) Cost per Share: $                                        

	 	(D) Total Exercise Cost (B) X (C): $
	 
	 	 
	(E) Grant Type (circle one): ISO NQ

	 	(F) Tax Amount Due if NQ: $                                         
	 

	 	Please leave NQ tax amount blank —
	 

	 	Stock Administration will calculate, if applicable.
	 
	 	 
	(G) Exercise Date:                                        

	 	(H) Are any of these shares unvested? YES    NO
	 
	Please leave exercise date blank for methods regarding an

1 & 2 — Stock Administration will complete the IRS

	 	If yes, please consult with your tax advisor
83(b) election which must be made and filed with
	when transaction is complete.
form.

	 	 the IRS within 30 days of exercise. See Stock Administration for an election

Please indicate the transaction method below. See reverse side of this form for a brief
explanation of each method.

	 	 	 
	                     Method 1

	 	SAME DAY SALE You must contact a Silicon Image designated
broker to place this trade. Please indicate which broker you have selected below.
	 
	 	 
	                     Method 2

	 	SELL TO COVER I
am exercising _____ shares, but want to sell only ___
shares. The balance will be deposited in
the account I’ve designated below. You must contact a
Silicon Image designated broker to place this trade. Please
indicate which broker you have selected below.
	 
	 	 
	                     Method 3

	 	EXERCISE & HOLD Please attach a personal check, made
payable to Silicon Image for the amounts indicated in items
(D) and (F) above. Please indicate below where you would
like your stock certificate to be mailed.

	 	 	 	 	 
	 

	 	Broker Name	 	 
	 

	 	 	 	 
	 

	 	Broker Address	 	 
	 

	 	 	 	 
	 
	 

	 	 	 	 
	 

	 	Account #	 	 
	 

	 	 	 	 

 

	 	 	 
	                     Credit Suisse First Boston

	 	Account #                                                    (415) 249-2205
	                     Deutsche Bank Alex Brown

	 	Account #                                                    (800) 248-3565
	                     E*Trade/OptionsLink

	 	It is not necessary to complete this form — please go to
www.etrade.com or www.optionslink.com
or call (800) 838-0908 to complete your trade.

 

 

 

Silicon Image, Inc.

Stock Option Agreement

1999 Equity Incentive Plan

I authorize the broker to remit funds to Silicon Image to pay for this exercise and any
applicable taxes and I understand that the shares will be sent directly to the broker address I
have indicated above. I acknowledge receipt of the prospectus covering shares of common stock
offered to optionees under the Company’s Stock Option Plan. The Plan and Option Agreement are
incorporated herein by reference. The Exercise Agreement, the Plan and Option Agreement constitute
the entire agreement and understanding of the parties and supercede in their entirety all prior
understandings and agreements of the Company and Optionee with respect to the subject matter
hereof. I UNDERSTAND THAT I MAY SUFFER ADVERSE TAX CONSEQUENCES AS A RESULT OF THE PURCHASE OR
DISPOSITION OF THESE SHARES. I HAVE CONSULTED WITH ANY TAX CONSULTANT(S) I DEEM ADVISABLE IN
CONNECTION WITH THE PURCHASE OR DISPOSITION OF THE SHARES AND CERTIFY THAT I AM NOT RELYING ON THE
COMPANY FOR TAX ADVICE. ___(Initial here)

	 	 	 	 	 	 	 
	 	 	 
	First Name

	 	Middle Initial
	 	Last Name
	 	Signature
	 
	 	 	 	 	 	 
	 

	 	 	 	 
	 	 
	Social Security #

	 	 	 	Employee ID #
	 	Phone Number
	 
	 	 	 	 	 	 
	 
	Current Address
	 	 	 	 	 	 

 

NOTE FOR NON-QUALIFIED (NQ) OPTIONS ONLY — Tax is required to be withheld or collected upon
exercise of all non-qualified stock options. The tax is based on the spread between the sale price
(closing fair market value if not same day sale) and the exercise price multiplied by 35.75% (25%
federal; 9.3% CA state; 1.45% Medicare). In addition, Social Security tax may be withheld or
collected depending on what you have paid year to date.

 

NOTE FOR UNITED KINGDOM OPTIONS ONLY – Exercise is ineffective if you have not executed the
required “joint election” form. Your employer will calculate the income tax and employee’s and
employer’s National Insurance contributions when due and will account for these amounts to Her
Majesty’s Revenue & Customs (“HRMC”). You are required to reimburse your employer for the amounts
contributed by it to HRMC. Your employer may withhold these amounts from your monthly salary. If
the total amount of income tax and National Insurance contributions exceeds your salary, you will
have to make up for the difference (such as “sell to cover”). Alternatively, the Company may sell
or arrange for the sale of shares that you receive from this exercise to cover these amounts. The
Company may refuse to deliver your shares to you until all such amounts have been repaid or
recovered.

 

Method 1 — SAME DAY SALE

You are selling all vested shares as indicated on the Exhibit A.

Method 2 — SELL TO COVER

You want to exercise vested shares and sell a portion of these shares to cover the cost and
applicable taxes of all the exercised shares. The balance of unsold shares will be deposited into
your brokerage account for future sale.

Method 3 — EXERCISE & HOLD

You only want to exercise (purchase) the shares in order to sell them at a later date.

 

 

Silicon Image, Inc.

Stock Option Agreement

1999 Equity Incentive Plan

 

	 	 	 
	Silicon Image Designated Brokers
	 	 
	A Credit Suisse First Boston

	 	Morgan Stanley
	Private Client Services

	 	101 California St
	201 Spear Street, 16th Floor

	 	San Francisco, CA
	San Francisco, CA 94105

	 	(800) 248-3565
	Mahnaz Ahmed (415) 249-2202

	 	Jesse Bromberg (415) 693-6876
	Fax — (415) 835-8350
	 	 
	 
	E*Trade/OptionsLink
	 	 
	P.O. Box 989032
	 	 
	West Sacramento, CA 95798-9858
	 	 
	www.optionslink.com
	 	 
	(800) 838-0908 (press “0” for service representative)
	(650) 599-0125 (from outside the United States)

 

 

 

Silicon Image, Inc.

Stock Option Agreement

1999 Equity Incentive Plan

EXHIBIT B

Joint Election under s431 ITEPA 2003 for full or partial disapplication of

Chapter 2 Income Tax (Earnings and Pensions) Act 2003

One Part Election

	1.	 	Between

	 	 	 	 	 
	the Employee
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	whose National Insurance Number is
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	and
	 	 	 	 
	 
	 	 	 	 
	the Company (who is the Employee’s employer)

	 	Silicon Image UK Limited

	 
	 	 	 	 
	of Company Registration Number

	 	                               05293397	 

	2.	 	Purpose of Election

This joint election is made pursuant to section 431(1) or 431(2) Income Tax (Earnings and Pensions)
Act 2003 (ITEPA) and applies where employment-related securities, which are restricted securities
by reason of section 423 ITEPA, are acquired.

The effect of an election under section 431(1) is that, for the relevant Income Tax and NIC
purposes, the employment-related securities and their market value will be treated as if they were
not restricted securities and that sections 425 to 430 ITEPA do not apply. An election under
section 431(2) will ignore one or more of the restrictions in computing the charge on acquisition.
Additional Income Tax will be payable (with PAYE and NIC where the securities are Readily
Convertible Assets).

Should the value of the securities fall following the acquisition, it is possible that Income
Tax/NIC that would have arisen because of any future chargeable event (in the absence of an
election) would have been less than the Income Tax/NIC due by reason of this election. Should this
be the case, there is no Income Tax/NIC relief available under Part 7 of ITEPA 2003; nor is it
available if the securities acquired are subsequently transferred, forfeited or revert to the
original owner.

	3.	 	Application

This joint election is made not later than 14 days after the date of acquisition of the securities
by the employee and applies to:

	 	 	 
	Number of securities
	 	 
	 

	 	 
	 
	 	 
	Description of securities

	 	Common Stock of Silicon Image, Inc.
	 
	 	 
	Name of issuer of securities

	 	Silicon Image, Inc.

 

 

Silicon Image, Inc.

Stock Option Agreement

1999 Equity Incentive Plan

To be acquired by the Employee after [date of exercise] under the terms of the UK Sub-Plan of the
Silicon Image, Inc. 1999 Equity Incentive Plan.

	4.	 	Extent of Application

This election disapplies S.431(1) ITEPA: All restrictions attaching to the securities.

	5.	 	Declaration

This election will become irrevocable upon the later of its signing or the acquisition of
employment-related securities to which this election applies.

In signing this joint election, we agree to be bound by its terms as stated above.

	 	 	 
	 

	 	___/___/___
	Signature (Employee)

	 	Date
	 
	 	 
	 

	 	___/___/___
	SIGNATURE (FOR AND ON BEHALF OF THE COMPANY)

	 	Date
	 
	 	 
	 

Position in company

	 	 

 

 

	 	 	 
	Dated:

	 	(insert date)
	 

SILICON IMAGE, INC.

- and -

SILICON IMAGE UK LIMITED

- and -

OPTIONEE

 

JOINT ELECTION

  

TAYLOR WESSING

Carmelite

50 Victoria Embankment

Blackfriars

London EC4Y 0DX

Tel: +44 (0)20 7300 7000

Fax: +44 (0)20 7300 7100

DX 41 London

FINAL

13/03/2006

Ref: DNK/FXB/SIL–63–10

 

 

JOINT ELECTION

BETWEEN

	(1)	 	SILICON IMAGE, INC. whose registered office is at 1060 East Arques Avenue, Sunnyvale CA
94085, USA (the “Company”); and
	 
	(2)	 	SILICON IMAGE UK LIMITED (company registration no. 05293397) whose registered office is at
Carmelite, 50 Victoria Embankment, London EC4Y 0DX (the “Employer”); and
	 
	(3)	 	«Name» of «Address» (the Optionee which shall include his executors or administrators in the
case of his death).

INTRODUCTION

	(A)	 	The Optionee may be granted, from time to time, options (each one an “Option”) to acquire
            shares of common stock in the Company (the “Shares”) on terms to be set out in stock option
agreements to be issued to the UK Sub-Plan of the Silicon Image, Inc. 1999 Equity Incentive
Plan (the “Plan”).
	 
	(B)	 	This joint election (the “Joint Election”) is in an approved format. The exercise,
cancellation, release, assignment or other disposal of an Option is subject to the Optionee
entering into this Joint Election.
	 
	(C)	 	The Optionee is currently an employee of the Employer.
	 
	(D)	 	The exercise, release, cancellation, assignment or other disposal of an Option (a “Trigger
Event”) (whether in whole or in part), may result in the Employer or, if and to the extent
that there is a change in law, any other company or person who becomes the secondary
contributor for National Insurance contributions (“NIC”) purposes at the time of such Trigger
Event having a liability to pay employer’s (secondary) Class I NICs (or any tax or social
security premiums which may be introduced in substitution or in addition thereto) in respect
of such Trigger Event.
	 
	(E)	 	Where the context so admits, any reference in this Joint Election:

	 	(i)	 	to the singular number shall be construed as if it referred also to the
plural number and vice versa;
	 
	 	(ii)	 	to the masculine gender shall be construed as though it referred also to the
feminine gender;
	 
	 	(iii)	 	to a statute or statutory provision shall be construed as if it referred
also to that statute or provision as for the time being amended or re-enacted;
	 
	 	(iv)	 	Shares means shares of common stock of the Company.

 

 

AGREED TERMS

	1.	 	Joint Election
	 
	1.1	 	It is a condition of the exercise, cancellation, release, assignment or other disposal of an
Option that the Optionee has entered into this Joint Election with the Employer.
	 
	1.2	 	The Optionee, the Company and the Employer elect to transfer the liability (the “Liability”)
for all of the employer’s (Secondary) Class I NICs, referred to in (D) above and charged on
payments or other benefits arising on a Trigger Event and treated as remuneration and earnings
pursuant to section 4(4)(a) of the Social Security Contributions and Benefit Act 1992 (“SSCBA”) to
the Optionee. This Joint Election is made pursuant to an arrangement authorised by paragraph 3B,
Schedule 1 of the SSCBA.
	 
	2.	 	Restriction on registration until liability paid by Optionee
	 
	 	 	The Optionee hereby agrees that no Shares shall be registered in his name until he has met the
Liability as a result of a Trigger Event in accordance with this Joint Election.
	 
	3.	 	Payment
	 
	3.1	 	Where, in relation to an Option, the Optionee is liable, or is in accordance with current
practice at the date of the Trigger Event believed by the Employer to be liable (where it is
believed that the shares under option are readily convertible assets), to account to the Inland
Revenue for the Liability, the Optionee and the Employer agree that, upon receipt of the funds to
meet the Liability from the Employee, that such funds to meet the Liability shall be paid to the
Collector of Taxes or other relevant taxation authority by the Employer on the Optionee’s behalf
within 14 days of the end of the income tax month in which the gain on the Option was made (“the 14
day period”) and for the purposes of securing payment of the Liability the Optionee will on the
occurrence of a Trigger Event:

	 	(a)	 	pay to the Employer a cash amount equal to the Liability; and/or
	 
	 	(b)	 	suffer a deduction from salary or other remuneration due to the Optionee such deduction being
in an amount not exceeding the Liability; and/or
	 
	 	(c)	 	at the request of the Company enter into such arrangement or arrangements necessary or
expedient with such person or persons (including the appointment of a nominee on behalf of the
Optionee) to effect the sale of Shares acquired through the exercise of the Option to cover all or
any part of the Liability and use the proceeds to pay the Employer a cash amount equal to the
Liability.

	3.2	 	The Optionee hereby irrevocably appoints the Company and the Employer as his attorney with full
power in his name to execute or sign any document and do any other thing which the Company or the
Employer may consider desirable for the purpose of giving effect to the Optionee satisfying the
Liability under clause 3.1 and satisfying any penalties and interest under clause 3.4. The
Optionee further agrees to ratify and confirm whatever the Company and the Employer may lawfully do
as his attorney. In particular, the Employer and/or the Company will have the right to enter into
such an arrangement (as envisaged by clause 3.1(c)) on the Optionee’s behalf to sell sufficient of
the Shares issued or transferred to the Optionee on the exercise of the Option to

 

 

	 	 	meet the
Liability pursuant to clause 3.1 and any penalty or interest arising under clause 3.4.
	 
	3.3	 	The Employer shall pass all monies it has collected from the Optionee in respect of the
Liability to the Collector of Taxes by no later than 14 days after the end of the income tax month
in which the Trigger Event occurred. The Employer shall be responsible for any penalties or
interest that may arise in respect of the Liability from any failure on its part after it has
collected any monies from the Optionee to pass the Liability to the Collector of Taxes within the
said 14 days period.
	 
	3.4	 	If the Optionee has failed to pay all or part of the Liability to the Employer within the 14
day period the Optionee hereby indemnifies the Employer against such penalties or interest that the
Employer would have to pay in respect of the late payment of all or part of the Liability to the
Collector of Taxes.
	 
	4.	 	Termination of Joint Election
	 
	4.1	 	This Joint Election shall cease to have effect on the occurrence of any of the following:

	 	(a)	 	if the terms of this Joint Election are satisfied in the reasonable opinion of the Company, the
Employer and the Optionee;
	 
	 	(b)	 	if the Company, the Employer and the Optionee jointly agree in writing to revoke this Joint
Election;
	 
	 	(c)	 	if the Inland Revenue withdraws approval of this Joint Election so far as it relates to share
options covered by the Joint Election but not yet granted;
	 
	 	(d)	 	if the Options lapse or no Option is otherwise capable of being exercised pursuant to the Plan;
and/or
	 
	 	(e)	 	if the Company and/or the Employer serve notice on the Optionee that the Joint Election is to
cease to have effect.

	5.	 	Further assurance
	 
	5.1	 	The Company, Employer and the Optionee shall do all such things and execute all such documents
as may be necessary or desirable to ensure that this Joint Election complies with all relevant
legislation and/or Inland Revenue requirements.
	 
	5.2	 	The Optionee shall notify the Employer in writing of any Trigger Event which occurs in relation
to an Option within three days of such Trigger Event.
	 
	5.3	 	The Company intends, as soon as practicable, to notify the Employer of the Optionee’s intention
of exercising an Option and shall provide the Employer with such information available to the
Company to enable the Employer to calculate the Liability arising on the Trigger Event.
	 
	6.	 	Secondary Contributor
	 
	 	 	The Employer enters into this Joint Election on its own behalf and on behalf of the
Company, or, if and to the extent that there is a change in law, any other company or
person who is or becomes a secondary contributor for NIC purposes in respect of an Option.
It is agreed that the Employer can enforce the terms of this Joint Election against the
Optionee on behalf of any such company.

 

 

	7.	 	Binding Effect
	 
	7.1	 	The Optionee agrees to be bound by the terms of this Joint Election and for the avoidance of
doubt the Optionee shall continue to be bound by the terms of this Joint Election regardless of
which country the Optionee is working in when the Liability arises and regardless of whether the
Optionee is an employee of the Employer when the Liability arises.
	 
	7.2	 	The Employer and the Company agree to be bound by the terms of this Joint Election and for the
avoidance of doubt the Employer and Company shall continue to be bound by the terms of this Joint
Election regardless of which country the Optionee is working in when the Liability arises and
regardless of whether the Optionee is an employee of the Employer when the Liability arises.
	 
	8.	 	Governing Law
	 
	8.1	 	This Joint Election shall be governed by and construed in accordance with English law and the
parties irrevocably submit to the non-exclusive jurisdiction of the English Courts to settle any
claims, disputes or issues which may arise out of this deed.

 

 

This Joint Election has been executed and delivered as a deed on the date written
above.

SIGNED as a Deed

	 	 	 	 	 
	By
	 	 	 	 
	 

	 	 

«Name1»
	 	 

in the presence of:

Witness signature:

	 	 	 
	Name:
	 	 
	 

	 	 
	 
	 	 
	Address:
	 	 
	 

	 	 
	 
	 	 
	Occupation:
	 	 
	 

	 	 

	 	 	 
	SIGNED as a DEED
	 	 
	by SILICON IMAGE UK LIMITED
	 	 
	acting by:
	 	 
	 
	 	 
	 
Robert Freeman
	 	 
	Director
	 	 
	 
	 
	 

Steve Tirado

	 	 
	Director
	 	 
	 
	 	 
	SIGNED as a DEED
	 	 
	By SILICON IMAGE, INC.
	 	 
	acting by the under-mentioned
	 	 
	person(s) acting on the authority
	 	 
	of the Company in accordance
	 	 
	with the laws of the territory of
	 	 
	its incorporation:
	 	 
	 
	 	 
	 

Steve Tirado

	 	 
	President and CEOexv10w04

 

Exhibit 10.04

SILICON IMAGE, INC.

1999 EMPLOYEE STOCK PURCHASE PLAN

As Adopted July 20, 1999

     1. Establishment of Plan. Silicon Image, Inc. (the “Company”) proposes to grant options for
purchase of the Company’s Common Stock to eligible employees of the Company and its Participating
Subsidiaries (as hereinafter defined) pursuant to this Employee Stock Purchase Plan (this “Plan”).
For purposes of this Plan, “Parent Corporation” and “Subsidiary” shall have the same meanings as
“parent corporation” and “subsidiary corporation” in Sections 424(e) and 424(f), respectively, of
the Internal Revenue Code of 1986, as amended (the “Code”). “Participating Subsidiaries” are
Parent Corporations or Subsidiaries that the Board of Directors of the Company (the “Board”)
designates from time to time as corporations that shall participate in this Plan. The Company
intends this Plan to qualify as an “employee stock purchase plan” under Section 423 of the Code
(including any amendments to or replacements of such Section), and this Plan shall be so construed.
Any term not expressly defined in this Plan but defined for purposes of Section 423 of the Code
shall have the same definition herein. A total of 250,000 shares of the Company’s Common Stock is
reserved for issuance under this Plan. In addition, on each January 1, the aggregate number of
shares of the Company’s Common Stock reserved for issuance under the Plan shall be increased
automatically by a number of shares equal to 1% of the total number of outstanding shares of the
Company Common Stock on the immediately preceding December 31; provided, that the Board or
the Committee may in its sole discretion reduce the amount of the increase in any particular year;
and, provided further, that the aggregate number of shares issued over the term of this
Plan shall not exceed 8,000,000 shares. Such number shall be subject to adjustments effected in
accordance with Section 14 of this Plan.

     2. Purpose. The purpose of this Plan is to provide eligible employees of the Company and
Participating Subsidiaries with a convenient means of acquiring an equity interest in the Company
through payroll deductions, to enhance such employees’ sense of participation in the affairs of the
Company and Participating Subsidiaries, and to provide an incentive for continued employment.

     3. Administration. This Plan shall be administered by the Compensation Committee of the
Board (the “Committee”). Subject to the provisions of this Plan and the limitations of Section 423
of the Code or any successor provision in the Code, all questions of interpretation or application
of this Plan shall be determined by the Committee and its decisions shall be final and binding upon
all participants. Members of the Committee shall receive no compensation for their services in
connection with the administration of this Plan, other than standard fees as established from time
to time by the Board for services rendered by Board members serving on Board committees. All
expenses incurred in connection with the administration of this Plan shall be paid by the Company.

     4. Eligibility. Any employee of the Company or the Participating Subsidiaries is eligible to
participate in an Offering Period (as hereinafter defined) under this Plan except the following:

          (a) employees who are not employed by the Company or a Participating Subsidiary (10) days
before the beginning of such Offering Period, except that employees who are employed on the
Effective Date of the Registration Statement filed by the Company with the Securities and Exchange
Commission (“SEC”) under the Securities Act of 1933, as amended (the “Securities Act”) registering
the initial public offering of the Company’s Common Stock shall be eligible to participate in the
first Offering Period under the Plan;

          (b) employees who are customarily employed for twenty (20) hours or less per week;

          (c) employees who are customarily employed for five (5) months or less in a calendar year;

          (d) employees who, together with any other person whose stock would be attributed to such
employee pursuant to Section 424(d) of the Code, own stock or hold options to purchase stock
possessing five percent (5%) or more of the total combined voting power or value of all classes of
stock of the Company or any of its Participating Subsidiaries or who, as a result of being granted
an option under this Plan with respect to such Offering Period,

 

 

Silicon Image, Inc.

1999 Employee Stock Purchase Plan

would own stock or hold options to purchase stock possessing five percent
(5%) or more of the total combined voting power or value of all classes of stock of the Company or
any of its Participating Subsidiaries; and

          (e) individuals who provide services to the Company or any of its Participating Subsidiaries
as independent contractors who are reclassified as common law employees for any reason
except for federal income and employment tax purposes.

     5. Offering Dates. The offering periods of this Plan (each, an “Offering Period”) shall be
of twenty-four (24) months duration commencing on February 1 and August 1 of each year and ending
on January 31 and July 31 of each year; provided, however, that notwithstanding the foregoing, the
first such Offering Period shall commence on the first business day on which price quotations for
the Company’s Common Stock are available on the Nasdaq National Market (the “First Offering Date”)
and shall end on July 31, 2001. Except for the first Offering Period, each Offering Period shall
consist of four (4) six month purchase periods (individually, a “Purchase Period”) during which
payroll deductions of the participants are accumulated under this Plan. The first Offering Period
shall consist of no more than five and no fewer than three Purchase Periods, any of which may be
greater or less than six months as determined by the Committee. The first business day of each
Offering Period is referred to as the “Offering Date”. The last business day of each Purchase
Period is referred to as the “Purchase Date”. The Committee shall have the power to change the
duration of Offering Periods with respect to offerings without stockholder approval if such change
is announced at least fifteen (15) days prior to the scheduled beginning of the first Offering
Period to be affected.

     6. Participation in this Plan. Eligible employees may become participants in an Offering
Period under this Plan on the first Offering Date after satisfying the eligibility requirements by
delivering a subscription agreement to the Company not later than five (5) days before such
Offering Date. Notwithstanding the foregoing, the Committee may set a later time for filing the
subscription agreement authorizing payroll deductions for all eligible employees with respect to a
given Offering Period. An eligible employee who does not deliver a subscription agreement to the
Company by such date after becoming eligible to participate in such Offering Period shall not
participate in that Offering Period or any subsequent Offering Period unless such employee enrolls
in this Plan by filing a subscription agreement with the Company not later than five (5) days
preceding a subsequent Offering Date. Once an employee becomes a participant in an Offering
Period, such employee will automatically participate in the Offering Period commencing immediately
following the last day of the prior Offering Period unless the employee withdraws or is deemed to
withdraw from this Plan or terminates further participation in the Offering Period as set forth in
Section 11 below. Such participant is not required to file any additional subscription agreement
in order to continue participation in this Plan.

     7. Grant of Option on Enrollment. Enrollment by an eligible employee in this Plan with
respect to an Offering Period will constitute the grant (as of the Offering Date) by the Company to
such employee of an option to purchase on the Purchase Date up to that number of shares of Common
Stock of the Company determined by dividing (a) the amount accumulated in such employee’s payroll
deduction account during such Purchase Period by (b) the lower of (i) eighty-five percent (85%) of
the fair market value of a share of the Company’s Common Stock on the Offering Date (but in no
event less than the par value of a share of the Company’s Common Stock), or (ii) eighty-five
percent (85%) of the fair market value of a share of the Company’s Common Stock on the Purchase
Date (but in no event less than the par value of a share of the Company’s Common Stock), provided, however, that the number of shares of the Company’s Common Stock subject to any option granted
pursuant to this Plan shall not exceed the lesser of (x) the maximum number of shares set by the
Committee pursuant to Section 10(c) below with respect to the applicable Purchase Date, or (y) the
maximum number of shares which may be purchased pursuant to Section 10(b) below with respect to the
applicable Purchase Date. The fair market value of a share of the Company’s Common Stock shall be
determined as provided in Section 8 below.

     8. Purchase Price. The purchase price per share at which a share of Common Stock will be
sold in any Offering Period shall be eighty-five percent (85%) of the lesser of:

          (a) The fair market value on the Offering Date; or

          (b) The fair market value on the Purchase Date.

 

 

Silicon Image, Inc.

1999 Employee Stock Purchase Plan

          For purposes of this Plan, the term “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 Board in good faith,
which in the case of the First Offering Date will be the price per share at which shares of the Company’s Common Stock are initially offered for sale to the
public by the Company’s underwriters in the initial public offering of the
Company’s Common Stock pursuant to a registration statement filed with the SEC
under the Securities Act.

     9. Payment Of Purchase Price; Changes In Payroll Deductions; Issuance Of Shares.

          (a) The purchase price of the shares is accumulated by regular payroll deductions made during
each Offering Period. The deductions are made as a percentage of the participant’s compensation in
one percent (1%) increments not less than one percent (1%), nor greater than fifteen percent (15%)
or such lower limit set by the Committee. Compensation shall mean all W-2 cash compensation,
including, but not limited to, base salary, wages, commissions, overtime, shift premiums and
bonuses, plus draws against commissions, provided, however, that for purposes of
determining a participant’s compensation, any election by such participant to reduce his or her
regular cash remuneration under Sections 125 or 401(k) of the Code shall be treated as if the
participant did not make such election. Payroll deductions shall commence on the first payday of
the Offering Period and shall continue to the end of the Offering Period unless sooner altered or
terminated as provided in this Plan.

          (b) A participant may increase or decrease the rate of payroll deductions during an Offering
Period by filing with the Company a new authorization for payroll deductions, in which case the new
rate shall become effective for the next payroll period commencing more than fifteen (15) days
after the Company’s receipt of the authorization and shall continue for the remainder of the
Offering Period unless changed as described below. Such change in the rate of payroll deductions
may be made at any time during an Offering Period, but not more than one (1) change may be made
effective during any Purchase Period. A participant may increase or decrease the rate of payroll
deductions for any subsequent Offering Period by filing with the Company a new authorization for
payroll deductions not later than fifteen (15) days before the beginning of such Offering Period.

          (c) A participant may reduce his or her payroll deduction percentage to zero during an
Offering Period by filing with the Company a request for cessation of payroll deductions. Such
reduction shall be effective beginning with the next payroll period commencing more than fifteen
(15) days after the Company’s receipt of the request and no further payroll deductions will be made
for the duration of the Offering Period. Payroll deductions credited to the participant’s account
prior to the effective date of the request shall be used to purchase shares of Common Stock of the
Company in accordance with Section (e) below. A participant may not resume making payroll
deductions during the Offering Period in which he or she reduced his or her payroll deductions to
zero.

          (d) All payroll deductions made for a participant are credited to his or her account under
this Plan and are deposited with the general funds of the Company. No interest accrues on the
payroll deductions. All payroll

 

 

Silicon Image, Inc.

1999 Employee Stock Purchase Plan

deductions received or held by the Company may be used by the
Company for any corporate purpose, and the Company shall not be obligated to segregate such payroll
deductions.

          (e) On each Purchase Date, so long as this Plan remains in effect and provided that the
participant has not submitted a signed and completed withdrawal form before that date which
notifies the Company that the participant wishes to withdraw from that Offering Period under this
Plan and have all payroll deductions accumulated in the account maintained on behalf of the
participant as of that date returned to the participant, the Company shall apply the funds then in
the participant’s account to the purchase of whole shares of Common Stock reserved under the
option granted to such participant with respect to the Offering Period to the extent that such
option is exercisable on the Purchase Date. The purchase price per share shall be as specified in
Section 8 of this Plan. Any cash remaining in a participant’s account after such purchase of
shares shall be refunded to such participant in cash, without interest; provided, however that any
amount remaining in such participant’s account on a Purchase Date which is less than the amount
necessary to purchase a full share of Common Stock of the Company shall be carried forward, without
interest, into the next Purchase Period or Offering Period, as the case may be. In the event that
this Plan has been oversubscribed, all funds not used to purchase shares on the Purchase Date shall
be returned to the participant, without interest. No Common Stock shall be purchased on a
Purchase Date on behalf of any employee whose participation in this Plan has terminated prior to
such Purchase Date.

          (f) As promptly as practicable after the Purchase Date, the Company shall issue shares for
the participant’s benefit representing the shares purchased upon exercise of his or her option.

          (g) During a participant’s lifetime, his or her option to purchase shares hereunder is
exercisable only by him or her. The participant will have no interest or voting right in shares
covered by his or her option until such option has been exercised.

     10. Limitations on Shares to be Purchased.

          (a) No participant shall be entitled to purchase stock under this Plan at a rate which, when
aggregated with his or her rights to purchase stock under all other employee stock purchase plans
of the Company or any Subsidiary, exceeds $25,000 in fair market value, determined as of the
Offering Date (or such other limit as may be imposed by the Code) for each calendar year in which
the employee participates in this Plan. The Company shall automatically suspend the payroll
deductions of any participant as necessary to enforce such limit provided that when the Company
automatically resumes such payroll deductions, the Company must apply the rate in effect
immediately prior to such suspension.

          (b) No more than two hundred percent (200%) of the number of shares determined by using
eighty-five percent (85%) of the fair market value of a share of the Company’s Common Stock on the
Offering Date as the denominator may be purchased by a participant on any single Purchase Date.

          (c) No participant shall be entitled to purchase more than the Maximum Share Amount (as
defined below) on any single Purchase Date. Not less than thirty (30) days prior to the
commencement of any Offering Period, the Committee may, in its sole discretion, set a maximum
number of shares which may be purchased by any employee at any single Purchase Date (hereinafter
the “Maximum Share Amount”). Until otherwise determined by the Committee, there shall be no
Maximum Share Amount. In no event shall the Maximum Share Amount exceed the amounts permitted
under Section 10(b) above. If a new Maximum Share Amount is set, then all participants must be
notified of such Maximum Share Amount prior to the commencement of the next Offering Period. The
Maximum Share Amount shall continue to apply with respect to all succeeding Purchase Dates and
Offering Periods unless revised by the Committee as set forth above.

          (d) If the number of shares to be purchased on a Purchase Date by all employees participating
in this Plan exceeds the number of shares then available for issuance under this Plan, then the
Company will make a pro rata allocation of the remaining shares in as uniform a manner as shall be
reasonably practicable and as the Committee shall determine to be equitable. In such event, the Company shall give written notice of
such reduction of the number of shares to be purchased under a participant’s option to each
participant affected.

 

 

Silicon Image, Inc.

1999 Employee Stock Purchase Plan

          (e) Any payroll deductions accumulated in a participant’s account which are not used to
purchase stock due to the limitations in this Section 10 shall be returned to the participant as
soon as practicable after the end of the applicable Purchase Period, without interest.

     11. Withdrawal.

          (a) Each participant may withdraw from an Offering Period under this Plan by signing and
delivering to the Company a written notice to that effect on a form provided for such purpose.
Such withdrawal may be elected at any time at least fifteen (15) days prior to the end of an
Offering Period.

          (b) Upon withdrawal from this Plan, the accumulated payroll deductions shall be returned to
the withdrawn participant, without interest, and his or her interest in this Plan shall terminate.
In the event a participant voluntarily elects to withdraw from this Plan, he or she may not resume
his or her participation in this Plan during the same Offering Period, but he or she may
participate in any Offering Period under this Plan which commences on a date subsequent to such
withdrawal by filing a new authorization for payroll deductions in the same manner as set forth in
Section 6 above for initial participation in this Plan.

          (c) If the Fair Market Value on the first day of the current Offering Period in which a
participant is enrolled is higher than the Fair Market Value on the first day of any subsequent
Offering Period, the Company will automatically enroll such participant in the subsequent Offering
Period. Any funds accumulated in a participant’s account prior to the first day of such subsequent
Offering Period will be applied to the purchase of shares on the Purchase Date immediately prior to
the first day of such subsequent Offering Period, if any.

     12. Termination of Employment. Termination of a participant’s employment for any reason,
including retirement, death or the failure of a participant to remain an eligible employee of the
Company or of a Participating Subsidiary, immediately terminates his or her participation in this
Plan. In such event, the payroll deductions credited to the participant’s account will be returned
to him or her or, in the case of his or her death, to his or her legal representative, without
interest. For purposes of this Section 12, an employee will not be deemed to have terminated
employment or failed to remain in the continuous employ of the Company or of a Participating
Subsidiary in the case of sick leave, military leave, or any other leave of absence approved by the
Board; provided that such leave is for a period of not more than ninety (90) days or
reemployment upon the expiration of such leave is guaranteed by contract or statute.

     13. Return of Payroll Deductions. In the event a participant’s interest in this Plan is
terminated by withdrawal, termination of employment or otherwise, or in the event this Plan is
terminated by the Board, the Company shall deliver to the participant all payroll deductions
credited to such participant’s account. No interest shall accrue on the payroll deductions of a
participant in this Plan.

     14. Capital Changes. Subject to any required action by the stockholders of the Company, the
number of shares of Common Stock covered by each option under this Plan which has not yet been
exercised and the number of shares of Common Stock which have been authorized for issuance under
this Plan but have not yet been placed under option (collectively, the “Reserves”), as well as the
price per share of Common Stock covered by each option under this Plan which has not yet been
exercised, shall be proportionately adjusted for any increase or decrease in the number of issued
and outstanding shares of Common Stock of the Company resulting from a stock split or the payment
of a stock dividend (but only on the Common Stock) or any other increase or decrease in the number
of issued and outstanding shares of Common Stock effected without receipt of any consideration by
the Company; 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 Committee, whose determination shall be final, binding and conclusive. Except as
expressly provided herein, no issue 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 thereof
shall be made with respect to, the number or price of shares of Common Stock subject to an option.

     In the event of the proposed dissolution or liquidation of the Company, the Offering Period
will terminate immediately prior to the consummation of such proposed action, unless otherwise
provided by the Committee. The Committee may, in the exercise of its sole discretion in such
instances, declare that this Plan shall terminate as of a

 

 

Silicon Image, Inc.

1999 Employee Stock Purchase Plan

date fixed by the Committee and give each
participant the right to purchase shares under this Plan prior to such termination. In the event
of (i) 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 under this Plan are
assumed, converted or replaced by the successor corporation, which assumption will be binding on
all participants), (ii) 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, (iii) the sale of all or
substantially all of the assets of the Company or (iv) the acquisition, sale, or transfer of more
than 50% of the outstanding shares of the Company by tender offer or similar transaction, the Plan
will continue with regard to Offering Periods that commenced prior to the closing of the proposed
transaction and shares will be purchased based on the Fair Market Value of the surviving
corporation’s stock on each Purchase Date, unless otherwise provided by the Committee consistent
with pooling of interests accounting treatment.

     The Committee may, if it so determines in the exercise of its sole discretion, also make
provision for adjusting the Reserves, as well as the price per share of Common Stock covered by
each outstanding option, in the event that the Company effects one or more reorganizations,
recapitalizations, rights offerings or other increases or reductions of shares of its outstanding
Common Stock, or in the event of the Company being consolidated with or merged into any other
corporation.

     15. Nonassignability. Neither payroll deductions credited to a participant’s account nor any
rights with regard to the exercise of an option or to receive shares under this Plan may be
assigned, transferred, pledged or otherwise disposed of in any way (other than by will, the laws of
descent and distribution or as provided in Section 22 below) by the participant. Any such attempt
at assignment, transfer, pledge or other disposition shall be void and without effect.

     16. Reports. Individual accounts will be maintained for each participant in this Plan. Each
participant shall receive promptly after the end of each Purchase Period a report of his or her
account setting forth the total payroll deductions accumulated, the number of shares purchased, the
per share price thereof and the remaining cash balance, if any, carried forward to the next
Purchase Period or Offering Period, as the case may be.

     17. Notice of Disposition. Each participant shall notify the Company in writing if the
participant disposes of any of the shares purchased in any Offering Period pursuant to this Plan if
such disposition occurs within two (2) years from the Offering Date or within one (1) year from the
Purchase Date on which such shares were purchased (the “Notice Period”). The Company may, at any
time during the Notice Period, place a legend or legends on any certificate representing shares
acquired pursuant to this Plan requesting the Company’s transfer agent to notify the Company of any
transfer of the shares. The obligation of the participant to provide such notice shall continue
notwithstanding the placement of any such legend on the certificates.

     18. No Rights to Continued Employment. Neither this Plan nor the grant of any option
hereunder shall confer any right on any employee to remain in the employ of the Company or any
Participating Subsidiary, or restrict the right of the Company or any Participating Subsidiary to
terminate such employee’s employment.

     19. Equal Rights And Privileges. All eligible employees shall have equal rights and
privileges with respect to this Plan so that this Plan qualifies as an “employee stock purchase
plan” within the meaning of Section 423 or any successor provision of the Code and the related
regulations. Any provision of this Plan which is inconsistent with Section 423 or any successor
provision of the Code shall, without further act or amendment by the Company, the Committee or the
Board, be reformed to comply with the requirements of Section 423. This Section 19 shall take
precedence over all other provisions in this Plan.

     20. Notices. All notices or other communications by a participant to the Company under or in
connection with this Plan shall be deemed to have been duly given when received in the form
specified by the Company at the location, or by the person, designated by the Company for the
receipt thereof.

 

 

Silicon Image, Inc.

1999 Employee Stock Purchase Plan

     21. Term; Stockholder Approval. After this Plan is adopted by the Board, this Plan will
become effective on the First Offering Date (as defined above). This Plan shall be approved by the
stockholders of the Company, in any manner permitted by applicable corporate law, within twelve
(12) months before or after the date this Plan is adopted by the Board. No purchase of shares
pursuant to this Plan shall occur prior to such stockholder approval. This Plan shall continue
until the earlier to occur of (a) termination of this Plan by the Board (which termination may be
effected by the Board at any time), (b) issuance of all of the shares of Common Stock reserved for
issuance under this Plan, or (c) ten (10) years from the adoption of this Plan by the Board.

     22. Designation of Beneficiary.

          (a) A participant may file a written designation of a beneficiary who is to receive any
shares and cash, if any, from the participant’s account under this Plan in the event of such
participant’s death subsequent to the end of an Purchase Period but prior to delivery to him of
such shares and cash. In addition, a participant may file a written designation of a beneficiary
who is to receive any cash from the participant’s account under this Plan in the event of such
participant’s death prior to a Purchase Date.

          (b) Such designation of beneficiary may be changed by the participant at any time by written
notice. In the event of the death of a participant and in the absence of a beneficiary validly
designated under this Plan who is living at the time of such participant’s death, the Company shall
deliver such shares or cash to the executor or administrator of the estate of the participant, or
if no such executor or administrator has been appointed (to the knowledge of the Company), the
Company, in its discretion, may deliver such shares or cash to the spouse or to any one or more
dependents or relatives of the participant, or if no spouse, dependent or relative is known to the
Company, then to such other person as the Company may designate.

     23. Conditions Upon Issuance of Shares; Limitation on Sale of Shares. Shares shall not be
issued with respect to an option unless the exercise of such option and the issuance and delivery
of such shares pursuant thereto shall comply with all applicable provisions of law, domestic or
foreign, including, without limitation, the Securities Act, the Securities Exchange Act of 1934, as
amended, the rules and regulations promulgated thereunder, and the requirements of any stock
exchange or automated quotation system 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.

     24. Applicable Law. The Plan shall be governed by the substantive laws (excluding the
conflict of laws rules) of the State of California.

     25. Amendment or Termination of this Plan. The Board may at any time amend, terminate or
extend the term of this Plan, except that any such termination cannot affect options previously
granted under this Plan, nor may any amendment make any change in an option previously granted
which would adversely affect the right of any participant, nor may any amendment be made without
approval of the stockholders of the Company obtained in accordance with Section 21 above within
twelve (12) months of the adoption of such amendment (or earlier if required by Section 21) if such
amendment would:

     (a) increase the number of shares that may be issued under this Plan; or

     (b) change the designation of the employees (or class of employees) eligible for participation
in this Plan.

     Notwithstanding the foregoing, the Board may make such amendments to the Plan as the Board
determines to be advisable, if the continuation of the Plan or any Offering Period would result in
financial accounting treatment for the Plan that is different from the financial accounting
treatment in effect on the date this Plan is adopted by the Board.

 

 

THE SILICON IMAGE, INC.

1999 EMPLOYEE STOCK PURCHASE PLAN

SUB-PLAN FOR UK EMPLOYEES

	1.	 	The purpose of this Sub-Plan is to provide incentive for present and future employees in the
United Kingdom of Silicon Image’s Subsidiaries through the grant of options over Common Stock.
	 
	2.	 	This Sub-Plan is governed by the Silicon Image, Inc. 1999 Employee Stock Purchase Plan (the
“Plan”) and all its provisions shall be identical to those of the Plan SAVE THAT Section 4
shall be as stated in this Sub-Plan in order to accommodate the specific requirements of UK
law.

Section 4 for purposes of this Sub-Plan reads:

     4. Eligibility. Any employee of the Participating Subsidiaries is eligible to participate in
an Offering Period (as hereinafter defined) under this Plan except the following:

          (a) employees who are not employed by the Company or a Participating Subsidiary (10) days
before the beginning of such Offering Period;

          (b) employees who are customarily employed for five (5) months or less in a calendar year;

          (c) employees who, together with any other person whose stock would be attributed to such
employee pursuant to Section 424(d) of the Code, own stock or hold options to purchase stock
possessing five percent (5%) or more of the total combined voting power or value of all classes of
stock of the Company or any of its Participating Subsidiaries or who, as a result of being granted
an option under this Plan with respect to such Offering Period, would own stock or hold options to
purchase stock possessing five percent (5%) or more of the total combined voting power or value of
all classes of stock of the Company or any of its Participating Subsidiaries; and

          (d) individuals who provide services to the Company or any of its Participating Subsidiaries
as independent contractors who are reclassified as common law employees for any reason except
for federal income and employment tax purposes.

 

 

SILICON IMAGE, INC. 1999 EMPLOYEE STOCK PURCHASE PLAN

ENROLLMENT FORM

	 	 	 	 	 
	Check One:	 	Complete:
	 
	 	 	 	 
	 

	 	o New Enrollment or Re-enrollment
	 	Social Security No.                                                             
	 
	 	 	 	 
	 

	 	o Change
	 	Employee No.                                                             

o Change in How Shares Are to Be Held in Account

o Increase in Payroll Deduction Level othis Purchase Period onext Offering Period

o Decrease in Payroll Deduction Level othis Purchase Period onext Offering Period

o Suspension of Payroll Deductions for Open Offering Period (Attach Completed Suspension Form)

o Withdrawal (Attach Completed Withdrawal Form)

o Beneficiary Change

	 	 	 	 	 
	1.

	 	Name of Participant	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	2.	 	Shares purchased under the Plan should be held in account with the Plan Broker in my name or

in my name together with the name(s) indicated below:

	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Name
	 	 	 	Social Security No.
	 	 	 	 
	 

	 	 	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	Name
	 	 	 	Social Security No.	 	 	 	 
	 

	 	 	 	 
	 	 	 	 	 	 

There may be tax consequences for naming individuals other than your spouse on the account in
which Shares purchased under the Plan are held. If spouse (circle one): Joint Tenants/Community
Property.

Please notify the Plan Broker directly to transfer or sell your stock.

	3.	 	Payroll Deduction Level (from 1% to 15% in whole percentages):___

(the percentage deduction will be made from your W-2 compensation including base salary,
commissions, overtime, shift premiums, bonuses and draws against commissions)
	 
	4.	 	I confirm my spouse’s interest (if married) in the community property herein, and I hereby
designate the following person(s) as my beneficiary(ies) to receive all payments and/or stock
attributable to my interest under the Plan:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	*To be divided	 	 	 	 	 	 
	NAME	 	 	 	as follows:	 	ADDRESS	 	 	 	 
	 	 	 	 	 
	Last

	 	First
	 	M.I.
	 	 	 	Number
	 	Street	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	Social Security No.	 	Relationship	 	 	 	City	 	State	 	Zip
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	Last

	 	First
	 	M.I.
	 	 	 	Number
	 	Street	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	Social Security No.	 	Relationship	 	 	 	City	 	State	 	Zip

 

			
	*	 	If more than one beneficiary: (1) insert “in equal shares”, or (2) insert percentage
to be paid to each beneficiary.

 

 

	5.	 	The information provided on this Enrollment Form will remain in effect unless and until I
complete and submit to Silicon Image, Inc. a new enrollment form.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	SILICON IMAGE, INC. OFFICE USE:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Signature:

	 	 	 	Date received by the
	 	 	 	:	 	 
	 

	 	 
	 	 	 	 
	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Name:

	 	 	 	Date entered into system:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Date:	 	 	 	Please return this completed form to Silicon Image, Inc.	 	 

 

 

SILICON IMAGE, INC.

1999 EMPLOYEE STOCK PURCHASE PLAN

SUBSCRIPTION AGREEMENT

	1.	 	I elect to participate in the Silicon Image, Inc. (the “Company”) 1999 Employee Stock
Purchase Plan (the “Plan”) and to subscribe to purchase shares of the Company’s Common Stock
(the “Shares”) in accordance with this Subscription Agreement and the Plan.
	 
	2.	 	I authorize payroll deductions from each of my paychecks in that percentage of my base
salary, commissions, overtime, shift premiums, bonuses and draws against commissions as shown
on my Enrollment Form, in accordance with the Plan.
	 
	3.	 	I understand that such payroll deductions shall be accumulated for the purchase of Shares
under the Plan at the applicable purchase price determined in accordance with the Plan. I
further understand that except as otherwise set forth in the Plan, Shares will be purchased
for me automatically at the end of each Purchase Period unless I withdraw from the Plan or
otherwise become ineligible to participate in the Plan.
	 
	4.	 	I understand that this Subscription Agreement will automatically re-enroll me in all
subsequent Offering Periods unless I withdraw from the Plan or I become ineligible to
participate in the Plan.
	 
	5.	 	I acknowledge that I have a copy of and am familiar with the Company’s most recent Prospectus
which describes the Plan. A copy of the complete Plan and the Prospectus is on file with the
Company. (In the case of the initial Plan Purchase Period, the Prospectus will be on file on
the first day of the Offering Period.)
	 
	6.	 	I understand that Shares purchased for me under the Plan will be held in a personal account
with the Plan Broker unless I request otherwise.
	 
	7.	 	I hereby agree to be bound by the terms of the Plan. The effectiveness of this Subscription
Agreement is dependent upon my eligibility to participate in the Plan.
	 
	8.	 	I have read and understood this Subscription Agreement.

	 	 	 	 	 
	 

	 	Signature:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Date:	 	 
	 

	 	 	 	 

Please return this completed form to the Company.

 

 

SILICON IMAGE, INC.

UK SUB-PLAN OF THE 1999

EMPLOYEE STOCK PURCHASE PLAN

ENROLLMENT FORM

	 	 	 	 	 
	Tick One:	 	Complete:
	 
	 	 	 	 
	 

	 	o New Enrollment or Re-enrollment
	 	National Insurance No.                                                             
	 
	 	 	 	 
	 

	 	o Change
	 	Employee No.                                                             

o Increase in Payroll Deduction Level othis Purchase Period onext Offering Period

o Decrease in Payroll Deduction Level othis Purchase Period onext Offering Period

o Suspension of Payroll Deductions for Open Offering Period (Attach Completed Suspension Form)

o Withdrawal (Attach Completed Withdrawal Form)

o Beneficiary Change

	1.	 	Name of Participant                                                                                                                         
	 
	2.	 	Shares purchased under the Sub-Plan will be held in the account with the Plan Broker in your
name.
	 
	 	 	Please notify the Plan Broker directly if you wish to transfer the shares to an account other
than your individual account. NOTE that there may be tax consequences for naming individuals
other than your spouse on the account in which Shares purchased under the Sub-Plan are held.
You should consult your tax advisor regarding this issue.
	 
	 	 	Please notify the Plan Broker directly to transfer or sell your stock.
	 
	3.	 	Payroll Deduction Level (from 1% to 15% in whole percentages):___
	 	 	(the percentage deduction will be made from your post-tax remuneration including base salary,
commissions, overtime, shift premiums, bonuses and draws against commissions)
	 
	4.	 	I confirm my spouse’s interest (if married) in the community property herein, and I hereby
designate the following person(s) as my beneficiary(ies) to receive all payments and/or stock
attributable to my interest under the Sub-Plan:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	*To be divided	 	 	 	 	 	 
	NAME	 	 	 	as follows:	 	ADDRESS	 	 	 	 
	 	 	 	 	 
	Last

	 	First
	 	M.I.
	 	 	 	Number
	 	Street	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	Social Security No.	 	Relationship	 	 	 	City	 	State	 	Zip
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	Last

	 	First
	 	M.I.
	 	 	 	Number
	 	Street	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	Social Security No.	 	Relationship	 	 	 	City	 	State	 	Zip

 

			
	*	 	If more than one beneficiary: (1) insert “in equal shares”, or (2) insert percentage
to be paid to each beneficiary.

 

 

	5.	 	The information provided on this Enrollment Form will remain in effect unless and until I
complete and submit to Silicon Image, Inc. a new enrollment form.

	 	 	 	 	 	 	 
	 	 	 	 	SILICON IMAGE, INC. OFFICE USE:
	 
	 	 	 	 	 	 
	Signature:

	 	 	 	Date received	 	 
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	Name:

	 	 	 	Date entered into system	 	 
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	Date:
	 	 	 	 	 	 
	 

	 	 

	 	 	 	 

Please return this completed form to Silicon Image, Inc. Human Resources — Fax (408) 830-9531.

 

 

SILICON IMAGE, INC.

UK SUB-PLAN OF THE 1999 EMPLOYEE STOCK PURCHASE PLAN

SUBSCRIPTION AGREEMENT

	1.	 	I elect to participate in the UK Sub-Plan of the Silicon Image, Inc. (the “Company”) 1999
Employee Stock Purchase Plan (the “Sub-Plan”) and to subscribe to purchase shares of the
Company’s Common Stock (the “Shares”) in accordance with this Subscription Agreement and the
Sub-Plan.

	2.	 	I authorize payroll deductions from each of my post-tax remuneration in that percentage of my
base salary, commissions, overtime, shift premiums, bonuses and draws against commissions as
shown on my Enrollment Form, in accordance with the Sub-Plan.

	3.	 	I understand that such payroll deductions shall be accumulated for the purchase of Shares
under the Sub-Plan at the applicable purchase price determined in accordance with the
Sub-Plan. I further understand that except as otherwise set forth in the Sub-Plan, Shares
will be purchased for me automatically at the end of each Purchase Period unless I withdraw
from the Sub-Plan or otherwise become ineligible to participate in the Sub-Plan.

	4.	 	I understand that this Subscription Agreement will automatically re-enroll me in all
subsequent Offering Periods unless I withdraw from the Plan or I become ineligible to
participate in the Sub-Plan.

	5.	 	I acknowledge that I have a copy of and am familiar with the Company’s most recent Prospectus
which describes the Sub-Plan. A copy of the complete Sub-Plan and the Prospectus is on file
with the Company. (In the case of the initial Plan Purchase Period, the Prospectus will be on
file on the first day of the Offering Period.)

6. Taxation Indemnity.

	 	(a)	 	I agree to indemnify and keep indemnified the Company and the Company as trustee for
and on behalf of any related corporation, in respect of any liability or obligation of the
Company and/or any related corporation to account for income tax (under PAYE) or any other
taxation provisions and primary class 1 National Insurance Contributions (“NICs”) in the
United Kingdom to the extent arising from the grant, exercise, assignment, release,
cancellation or any other disposal of my option or arising out of the acquisition,
retention and disposal of the Shares acquired pursuant to the Subscription Agreement.
	 
	 	(b)	 	The Company shall not be obliged to allot and issue any Shares or any interest in
Shares to me unless and until I have paid to the Company such sum as is, in the opinion of
the Company, sufficient to indemnify the Company in full against any liability the Company
has to account to the Inland Revenue for any amount of, or representing, income tax and/or
primary NICs (the “Tax Liability”), or I have made such other arrangement as in the opinion
of the Company will ensure that the full amount of any Tax Liability will be recovered from
me within such period as the Company may then determine.
	 
	 	(c)	 	In the absence of any such other arrangement being made, the Company shall have the
right to retain out of the aggregate number of shares to which I would be otherwise
entitled upon the exercise of my option, such number of Shares as, in the opinion of the
Company, will enable the Company to sell as agent for me (at the best price which can
reasonably expect to be obtained at the time of the sale) and to pay over to the Company
sufficient monies out of the net proceeds of sale, after deduction of all fees, commissions
and expenses incurred in relation to such sale, to satisfy my liability under such
indemnity.

	7.	 	Employer’s NICs. As a consideration of the opportunity to participate in the Sub-Plan I
agree to join with the Company or, if and to the extent that there is a change in the law, any
other company or person who is or becomes a secondary contributor for NIC purposes in respect
of this option (the “Secondary Contributor”) in
making an election (in such terms and such form as provided in paragraphs 3A and 3B of Schedule
1 to the Social Security Contributions and Benefits Act 1992) which has been approved by the
Inland Revenue (the “Joint Election”), for the transfer of the whole or any liability of the
Secondary Contributor to Employer’s Class 1 NICs to me. I realize and agree that if the Company
does not have an effective Joint Election on file for me by

 

 

	 	 	the deadline for withdrawal from the
Sub-Plan for a given Purchase Date, then the absence of such Joint Election shall be treated as
an election by me to withdraw from the Sub-Plan and on such Purchase Date no purchase shall be
made for me and any deductions/contributions shall be refunded to me.

	8.	 	I understand that Shares purchased for me under the Sub-Plan will be held in a personal
account with the Plan Broker unless I request otherwise.

9. Data Protection.

	 	(a)	 	In order to facilitate the administration of the Sub-Plan, it will be necessary for
Silicon Image UK Limited (or its payroll administrators) to collect, hold and process
certain personal information about me and to transfer this data to the Company and to the
Plan Brokers. I consent to Silicon Image UK Limited collecting, holding and processing its
personal data and transferring this data to the Company or any other third parties insofar
as is reasonably necessary to implement, administer and manage the Sub-Plan.
	 
	 	(b)	 	I understand that I may, at any time, view my personal data, require any necessary
corrections to it or withdraw the consents herein in writing by contacting the Human
Resources Department of the Company (but acknowledge that without the use of such data it
may not be practicable for Silicon Image UK Limited and the Company to administer my
involvement in the Sub-Plan in a timely fashion or at all and this may be detrimental to
me.

	10.	 	I hereby agree to be bound by the terms of the Sub-Plan. The effectiveness of this
Subscription Agreement is dependent upon my eligibility to participate in the Sub-Plan.

11. I have read and understood this Subscription Agreement.

	 	 	 	 	 
	 

	 	Signature:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Date:	 	 
	 

	 	 	 	 

Please return this completed form to Silicon Image, Inc., Human Resources

Fax (408) 830-9531.

 

 

SILICON IMAGE, INC.

1999 EMPLOYEE STOCK PURCHASE PLAN

NOTICE OF SUSPENSION

I, ___, the undersigned participant in the Offering Period of the Silicon
Image, Inc. 1999 Employee Stock Purchase Plan (the “Plan”) which began on ___, hereby
notify Silicon Image, Inc. (the “Company”) that I wish to suspend my payroll deductions to the Plan
for the remainder of the Offering Period. I understand and agree that my request will be effective
beginning with the next payroll period commencing more than 15 days after the Company receives this
Notice of Suspension. I understand and agree that payroll deductions credited to my account prior
to the date this Notice of Suspension is effective will be used to purchase shares on the next
Purchase Date. I further understand that no additional payroll deductions will be made for the
purchase of shares in the current Offering Period, and I will be eligible to participate in
succeeding Offering Periods only by timely delivering to the Company a new Subscription Agreement
and Enrollment Form.

Name and address of Participant (please print):

	 	 	 	 	 
	Name:

	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Street Address or P.O. Box:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	City, State ZIP:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	Signature

	 	Date	 	 

Please return this form to Human Resources.

 

 

SILICON IMAGE, INC.

1999 EMPLOYEE STOCK PURCHASE PLAN

NOTICE OF WITHDRAWAL

I, ___, the undersigned participant in the Offering Period of the Silicon
Image, Inc. 1999 Employee Stock Purchase Plan (the “Plan”) which began on ___, hereby
notify Silicon Image, Inc. (the “Company”) that I wish to withdraw from the Offering Period. I
direct the Company to pay to me as promptly as practicable all payroll deductions credited to my
account with respect to such Offering Period. I understand and agree that my participation in the
Plan will terminate and no shares will be purchased for me at the end of the Purchase Period so
long as I submit this Notice of Withdrawal to the Company at least 15 days prior to the end of the
Purchase Period. I understand and agree that if I submit this Notice of Withdrawal to the Company
less than 15 days prior to the end of the Purchase Period, shares will be purchased for me
at the end of the Purchase Period, and my participation in the Plan will end at the beginning of
the next Purchase Period or Offering Period, as the case may be. I further understand that no
additional payroll deductions will be made for the purchase of shares in the current Offering
Period, and I shall be eligible to participate in succeeding Offering Periods only by timely
delivering to the Company a new Subscription Agreement and Enrollment Form.

Name and address of Participant (please print):

	 	 	 	 	 
	Name:

	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Street Address or P.O. Box:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	City, State ZIP:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	Signature

	 	Date	 	 

Please return this form to Human Resources.

 

 

	 	 	 	 	 
	Dated:	 	 (insert date)

SILICON IMAGE, INC.

- and -

SILICON IMAGE UK LIMITED

- and -

PARTICIPANT

 

JOINT ELECTION

 

TAYLOR WESSING

Carmelite

50 Victoria Embankment

Blackfriars

London EC4Y 0DX

Tel: +44 (0)20 7300 7000

Fax: +44 (0)20 7300 7100

DX 41 London

FINAL

13/03/2006

Ref: DNK/FXB/SIL–63–10

 

 

JOINT ELECTION

BETWEEN

	(1)	 	SILICON IMAGE, INC. whose registered office is at 1060 East Arques Avenue, Sunnyvale CA
94085, USA (the “Company”); and
	 
	(2)	 	SILICON IMAGE UK LIMITED (company registration no. 05293397) whose registered office is at
Carmelite, 50 Victoria Embankment, London EC4Y 0DX (the “Employer”); and
	 
	(3)	 	«Name» of «Address» (the “Participant” which shall include his executors or administrators in
the case of his death).

INTRODUCTION

	(A)	 	The Participant may be granted, from time to time, options (each one an “Option”) to
acquire shares of common stock in the Company (the “Shares”) on terms to be set out in stock
purchase agreements to be issued to the UK Sub-Plan of the Silicon Image, Inc. 1999 Employee
Stock Purchase Plan (the “Plan”).
	 
	(B)	 	This joint election (the “Joint Election”) is in an approved format. The exercise,
cancellation, release, assignment or other disposal of an Option is subject to the Participant
entering into this Joint Election.
	 
	(C)	 	The Participant is currently an employee of the Employer.
	 
	(D)	 	The exercise, release, cancellation, assignment or other disposal of an Option (a “Trigger
Event”) (whether in whole or in part), may result in the Employer or, if and to the extent
that there is a change in law, any other company or person who becomes the secondary
contributor for National Insurance contributions (“NIC”) purposes at the time of such Trigger
Event having a liability to pay employer’s (secondary) Class I NICs (or any tax or social
security premiums which may be introduced in substitution or in addition thereto) in respect
of such Trigger Event.
	 
	(E)	 	Where the context so admits, any reference in this Joint Election:

	 	(i)	 	to the singular number shall be construed as if it referred also to the plural
number and vice versa;
	 
	 	(ii)	 	to the masculine gender shall be construed as though it referred also to the
feminine gender;
	 
	 	(iii)	 	to a statute or statutory provision shall be construed as if it referred also
to that statute or provision as for the time being amended or re-enacted;
	 
	 	(iv)	 	Shares means shares of common stock of the Company.

 

 

AGREED TERMS

	1.	 	Joint Election
	1.1	 	It is a condition of the exercise, cancellation, release, assignment or other
disposal of an Option that the Participant has entered into this Joint Election with
the Employer.

	1.2	 	The Participant, the Company and the Employer elect to transfer the liability (the
“Liability”) for all of the employer’s (Secondary) Class I NICs, referred to in (D)
above and charged on payments or other benefits arising on a Trigger Event and treated
as remuneration and earnings pursuant to section 4(4)(a) of the Social Security
Contributions and Benefit Act 1992 (“SSCBA”) to the Participant. This Joint Election
is made pursuant to an arrangement authorised by paragraph 3B, Schedule 1 of the SSCBA.

2. RESTRICTION ON REGISTRATION UNTIL LIABILITY PAID BY PARTICIPANT

     The Participant hereby agrees that no Shares shall be registered in his name until he
has met the Liability as a result of a Trigger Event in accordance with this Joint Election.

3. PAYMENT

	3.1	 	Where, in relation to an Option, the Participant is liable, or is in accordance with current
practice at the date of the Trigger Event believed by the Employer to be liable (where
it is believed that the shares under option are readily convertible assets), to account
to the Inland Revenue for the Liability, the Participant and the Employer agree that,
upon receipt of the funds to meet the Liability from the Employee, that such funds to
meet the Liability shall be paid to the Collector of Taxes or other relevant taxation
authority by the Employer on the Participant’s behalf within 14 days of the end of the
income tax month in which the gain on the Option was made (“the 14 day period”) and for
the purposes of securing payment of the Liability the Participant will on the
occurrence of a Trigger Event:

	 	(a)	 	pay to the Employer a cash amount equal to the Liability; and/or
	 
	 	(b)	 	suffer a deduction from salary or other remuneration due to the Participant such
deduction being in an amount not exceeding the Liability; and/or
	 
	 	(c)	 	at the request of the Company enter into such arrangement or
arrangements necessary or expedient with such person or persons (including the
appointment of a nominee on behalf of the Participant) to effect the sale of
Shares acquired through the exercise of the Option to cover all or any part of
the Liability and use the proceeds to pay the Employer a cash amount equal to
the Liability.

	3.2	 	The Participant hereby irrevocably appoints the Company and the Employer as his
attorney with full power in his name to execute or sign any document and do any other
thing which the Company or the Employer may consider desirable for the purpose of
giving effect to the Participant satisfying the Liability under clause 3.1 and
satisfying any penalties and interest under clause 3.4. The Participant further agrees
to ratify and confirm whatever the Company and the Employer may lawfully do as his
attorney. In particular, the Employer and/or the Company will have the right to enter
into such an arrangement (as envisaged by clause 3.1(c)) on the Participant’s behalf to
sell sufficient of the Shares issued or transferred to the Participant on the exercise
of the

 

 

	 	 	Option to meet the Liability pursuant to clause 3.1 and any penalty or interest
arising under clause 3.4.

	3.3	 	The Employer shall pass all monies it has collected from the Participant in respect
of the Liability to the Collector of Taxes by no later than 14 days after the end of
the income tax month in which the Trigger Event occurred. The Employer shall be
responsible for any penalties or interest that may arise in respect of the Liability
from any failure on its part after it has collected any monies from the Participant to
pass the Liability to the Collector of Taxes within the said 14 days period.

	3.4	 	If the Participant has failed to pay all or part of the Liability to the Employer
within the 14 day period the Participant hereby indemnifies the Employer against such
penalties or interest that the Employer would have to pay in respect of the late
payment of all or part of the Liability to the Collector of Taxes.

	4.	 	TERMINATION OF JOINT ELECTION

	4.1	 	This Joint Election shall cease to have effect on the occurrence of any of the
following:

	(a)	 	if the terms of this Joint Election are satisfied in the
reasonable opinion of the Company, the Employer and the Participant;
	 
	(b)	 	if the Company, the Employer and the Participant jointly agree in
writing to revoke this Joint Election;
	 
	(c)	 	if the Inland Revenue withdraws approval of this Joint Election so
far as it relates to share options covered by the Joint Election but not yet
granted;
	 
	(d)	 	if the Options lapse or no Option is otherwise capable of being
exercised pursuant to the Plan; and/or
	 
	(e)	 	if the Company and/or the Employer serve notice on the Participant
that the Joint Election is to cease to have effect.

5. FURTHER ASSURANCE

	5.1	 	The Company, Employer and the Participant shall do all such things and execute all
such documents as may be necessary or desirable to ensure that this Joint Election
complies with all relevant legislation and/or Inland Revenue requirements.

	5.2	 	The Participant shall notify the Employer in writing of any Trigger Event which
occurs in relation to an Option within three days of such Trigger Event.

	5.3	 	The Company intends, as soon as practicable, to notify the Employer of the
Participant’s intention of exercising an Option and shall provide the Employer with
such information available to the Company to enable the Employer to calculate the
Liability arising on the Trigger Event.

	6.	 	SECONDARY CONTRIBUTOR
	 
	 	 	The Employer enters into this Joint Election on its own behalf and on behalf of the
Company, or, if and to the extent that there is a change in law, any other company or person
who is or becomes a secondary contributor for NIC purposes in respect of an Option. It is
agreed that the Employer can enforce the terms of this Joint Election against the
Participant on behalf of any such company.

 

 

	7.	 	BINDING EFFECT

	7.1	 	The Participant agrees to be bound by the terms of this Joint Election and for the
avoidance of doubt the Participant shall continue to be bound by the terms of this
Joint Election regardless of which country the Participant is working in when the
Liability arises and regardless of whether the Participant is an employee of the
Employer when the Liability arises.

	7.2	 	The Employer and the Company agree to be bound by the terms of this Joint Election
and for the avoidance of doubt the Employer and Company shall continue to be bound by
the terms of this Joint Election regardless of which country the Participant is working
in when the Liability arises and regardless of whether the Participant is an employee
of the Employer when the Liability arises.

8. GOVERNING LAW

	8.1	 	This Joint Election shall be governed by and construed in accordance with English
law and the parties irrevocably submit to the non-exclusive jurisdiction of the English
Courts to settle any claims, disputes or issues which may arise out of this deed.

 

 

This Joint Election has been executed and delivered as a deed on the date written above.

SIGNED as a Deed

	 	 	 	 	 
	By

	 	 	 	 
	 

	 	 	 	 
	 

	 	«Name1»	 	 

in the presence of:

Witness signature:

	 	 	 
	Name:
	 	 
	 

	 	 
	 
	 	 
	Address:
	 	 
	 

	 	 
	 
	 	 
	Occupation:
	 	 
	 

	 	 

SIGNED as a DEED

by SILICON IMAGE UK LIMITED

acting by:

	 	 	 
	 

Robert Freeman

	 	 
	Director
	 	 

	 	 	 
	 

Steve Tirado

	 	 
	Director
	 	 

SIGNED as a DEED

By SILICON IMAGE, INC.

acting by the under-mentioned

person(s) acting on the authority

of the Company in accordance

with the laws of the territory of

its incorporation:

	 	 	 
	 

Patrick Reutens

	 	 
	Corporate Secretary
	 	 

	 	 	 
	 

Steve Tirado

	 	 
	President and CEO

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00099-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00099-of-00352.parquet"}]]