EXHIBIT 10.2
[XXXXXXXXX SEMICONDUCTOR LOGO]
NON-QUALIFIED STOCK OPTION AGREEMENT
This is a Non-Qualified Stock Option Agreement dated December 1, 2004 (the
"Grant Date") between Xxxxxxxxx Semiconductor International, Inc. (the
"Company") and Xxxx Xxxxxxxx, a salaried employee of the Company or one of its
subsidiaries ("you" or the "Optionee"). This option grant is made under and
granted in accordance with the Employment Agreement entered into between you and
Xxxxxxxxx Semiconductor Corporation on the date hereof, as such Employment
Agreement may be amended or restated from time to time (the "Employment
Agreement"). Capitalized terms used and not defined in this Agreement shall have
the meanings given to them in the Xxxxxxxxx Semiconductor Stock Plan (the
"Plan"). This option agreement consists of this document, the Employment
Agreement and the Plan. Any conflict between the terms of the Plan and the terms
of the Employment Agreement will be resolved in favor of the Employment
Agreement, read without reference to the Plan.
OPTION GRANT; The Company grants you the option to purchase up to 200,000
EXERCISE PRICE shares of the Company's Common Stock at an exercise price of
$16.70 per share.
OPTION TERM; The term of your option is 8 years plus one day from the Grant
VESTING Date. Your option terminates at the end of the term and cannot
be exercised after the term. You can exercise your option only
to the extent it has vested. Subject to accelerated vesting as
specified in the Employment Agreement, your option will vest
in increments, as follows:
Percentage Vested
(including portion that
Vesting Date vested the preceding year)
1st Anniversary of Grant Date ..................... 25%
2nd Anniversary of Grant Date...................... 50%
3rd Anniversary of Grant Date...................... 75%
4th Anniversary of Grant Date...................... 100%
provided that your option will vest upon a Change In Control
(as defined in the Employment Agreement) in accordance with
the terms of the Employment Agreement.
TERMINATION OF You must remain an employee of the Company or an Affiliate to
EMPLOYMENT be able to exercise your option, except as follows, or as
otherwise provided in your Employment Agreement:
Retirement, Disability or death. If your employment terminates
because of your Retirement or Disability (as those terms are
defined in the Plan) or your death, then you (or your estate)
will have five years from your termination date to exercise
your option, unless the option term ends earlier, in which
case you (or your estate) will have until the end of the term
to exercise. In addition, if your employment terminates
because of your Retirement or Disability and you die within
the five-year exercise period, your estate will have at least
one year after your death to exercise, unless the option term
ends earlier, in which case your estate will have until the
end of the term to exercise.
Termination by the Company. If your employment is terminated
for Cause (as defined in the Employment Agreement), your
option will be terminated, whether or not vested, and you may
have to repay any gains on prior exercised options as provided
in Section 8(d) and Section 11 of the Employment Agreement. If
your employment is terminated by the Company not for Cause and
not as a result of your Retirement, Disability or death, or if
you voluntarily terminate for Good Reason (as defined in your
Employment Agreement) then you (or your estate) will have 90
days from your termination date to exercise your option,
unless the option term ends earlier, in which case you (or
your estate) will have until the end of the term to exercise.
All other cases. If your employment terminates because you
quit, or for any other reason other than those stated above,
you (or your estate, if you die within the period) will have
30 days from your termination date to exercise your option,
unless the option term ends earlier, in which case you (or
your estate) will have until the end of the term to exercise.
Regardless of the cause of your termination, you (or your
estate) can exercise your option only to the extent it is
vested on your termination date.
NON- Your option is not transferable except by will or the laws of
TRANSFERABILITY decent and distribution. During your lifetime only you can
exercise your option. This option shall not be subject to
attachment or similar process. Any attempted sale, pledge,
assignment, transfer or other disposition of your option
contrary to the provisions of this agreement, or the levy of
any attachment or similar process upon your option, shall be
null and void without effect.
1
MISCELLANEOUS Nothing in this agreement gives you the right to remain
employed by the Company or any subsidiary. This agreement
shall be governed by the laws of the State of Maine, without
regard to conflicts of laws principles. The section and
paragraph headings in this agreement are for convenience of
reference only and shall not affect the construction or
interpretation of this agreement.
SIGNATURES Your signature and the signature of an authorized officer of
the Company below indicate your and the Company's agreement to
the terms of this Non-Qualified Stock Option Agreement as of
the Grant Date.
XXXXXXXXX SEMICONDUCTOR
OPTIONEE: INTERNATIONAL, INC.
/s/ Xxxx Xxxxxxxx /s/ Xxxx X. Xxxx
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Xxxx Xxxxxxxx Xxxx X. Xxxx
SSN/Global ID: ________ Chairman, President and CEO
