LEXAR MEDIA INC
FORM OF STOCK OPTION AGREEMENT FOR UK EMPLOYEES
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<DESCRIPTION>FORM OF STOCK OPTION AGREEMENT FOR UK EMPLOYEES
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 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2"><B>Exhibit 10.4 </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT
SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>LEXAR MEDIA, INC. </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>2000 EQUITY INCENTIVE PLAN </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B><U>STOCK OPTION AGREEMENT FOR UK EMPLOYEES </U></B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">This Stock Option Agreement (this &#147;<B><I>Agreement</I></B>&#148;) is made and entered into as of the Date of Grant set forth on the Certificate of
Stock Option Grant on E*Trade&#146;s website (the &#147;<B><I>Certificate</I></B>&#148;) by and between Lexar Media, Inc., a Delaware corporation (the &#147;<B><I>Company</I></B>&#148;), and the Optionee named on the Certificate
(&#147;<B><I>Optionee</I></B>&#148;). Capitalized terms not defined herein shall have the meanings ascribed to them in the Company&#146;s 2000 Equity Incentive Plan (the &#147;<B><I>Plan</I></B>&#148;), the Agreement and the Certificate. </FONT></P>
<P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B>1. <U>Grant of Option</U></B>. The Company hereby grants to Optionee an
option (this &#147;<B><I>Option</I></B>&#148;) to purchase up to the total number of shares of Common Stock of the Company set forth on the Certificate as Total Option Shares (collectively, the &#147;<B><I>Shares</I></B>&#148;) at the Exercise Price
Per Share set forth on the Certificate (the &#147;<B><I>Exercise Price</I></B>&#148;), subject to all of the terms and conditions of this Agreement and the Plan. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT
SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B>2. <U>Vesting; Exercise Period</U>. </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:-6px"><FONT
SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:4%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">2.1 <U>Vesting of Shares</U>. This Option shall be exercisable as it vests. Subject to the terms and
conditions of the Plan, the Certificate and this Agreement, this Option shall vest and become exercisable as to portions of the Shares as indicated on the Certificate: (a) this Option shall not be exercisable with respect to any of the Shares until
the First Vesting Date; (b) if Optionee has continuously provided services to the Company, or any Parent or Subsidiary of the Company, then on the First Vesting Date, this Option shall become exercisable as per the vesting schedule on the
Certificate, provided that Optionee has continuously provided services to the Company, or any Parent or Subsidiary of the Company, at all times during the relevant month. This Option shall cease to vest upon Optionee&#146;s Termination and Optionee
shall in no event be entitled under this Option to purchase a number of shares of the Company&#146;s Common Stock greater than the &#147;Total Option Shares.&#148; </FONT></P> <P STYLE="margin-top:0px;margin-bottom:-6px"><FONT
SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:4%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">2.2 <U>Vesting of Options</U>. Shares that are vested pursuant to the vesting schedule set forth in the
Certificate are &#147;Vested Shares.&#148; Shares that are not vested pursuant to the vesting schedule set forth in the Certificate are &#147;Unvested Shares.&#148; </FONT></P> <P STYLE="margin-top:0px;margin-bottom:-6px"><FONT
SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:4%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">2.3 <U>Expiration</U>. This Option shall expire on the Expiration Date set forth on the Certificate 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. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT
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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B>3. <U>Termination</U>. </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:-6px"><FONT
SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:4%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">3.1 <U>Termination for Any Reason Except Death, Disability or Cause</U>. If Optionee is Terminated for any
reason except Optionee&#146;s death, Disability or Cause, then this Option, to the extent (and only to the extent) that it is vested in accordance with the vesting schedule set forth on the Certificate on the Termination Date, 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. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:-6px"><FONT SIZE="1">&nbsp;</FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px; margin-left:4%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">3.2 <U>Termination Because of Death or Disability</U>. If Optionee is Terminated because of death or Disability of Optionee (or the
Optionee dies within three (3) months after Termination other than for Cause or because of Disability), then this Option, to the extent that it is vested in accordance with the vesting schedule set forth on the Certificate on the Termination Date,
may be exercised by Optionee (or Optionee&#146;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. Any exercise after three months after the
Termination Date when the Termination is for any reason other than Optionee&#146;s death or disability, within the meaning of Code Section 22(e)(3), shall be deemed to be the exercise of a nonqualified stock option. </FONT></P> <P
STYLE="margin-top:0px;margin-bottom:-6px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:4%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">3.3 <U>Termination for Cause</U>. If Optionee is Terminated
for Cause, this Option will expire on the Optionee&#146;s date of Termination. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:-6px"><FONT SIZE="1">&nbsp;</FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px; margin-left:4%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">3.4 <U>No Obligation to Employ</U>. Nothing in the Plan, the Certificate 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&#146;s employment or other
relationship at any time, with or without Cause. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B>4.
<U>Manner of Exercise</U>. </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:-6px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:4%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">4.1 <U>Stock
Option Exercise Agreement</U>. To exercise this Option, Optionee (or in the case of exercise after Optionee&#146;s death, Optionee&#146;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 known as the Cash Letter of Authorization available from E*Trade&#146;s website, or in such other form as may be approved by the Company from time to time (the &#147;<B><I>Exercise Agreement</I></B>&#148;),
which shall set forth, <U>inter</U> <U>alia</U>, Optionee&#146;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&#146;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. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>



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 <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:4%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">4.2 <U>Limitations on Exercise</U>. 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. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:-6px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:4%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">4.3 <U>Payment</U>. 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: </FONT></P> <P STYLE="margin-top:0px;margin-bottom:-6px"><FONT SIZE="1">&nbsp;</FONT></P>
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<TD WIDTH="5%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(a)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">by cancellation of indebtedness of the Company to the Optionee; </FONT></TD></TR></TABLE> <P STYLE="margin-top:0px;margin-bottom:-6px"><FONT SIZE="1">&nbsp;</FONT></P>
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<TD WIDTH="5%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(b)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">by surrender of shares of the Company&#146;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; <U>and</U> (3) are clear of all liens,
claims, encumbrances or security interests; </FONT></TD></TR></TABLE> <P STYLE="margin-top:0px;margin-bottom:-6px"><FONT SIZE="1">&nbsp;</FONT></P>
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<TD WIDTH="5%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(c)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">by waiver of compensation due or accrued to Optionee for services rendered; </FONT></TD></TR></TABLE> <P STYLE="margin-top:0px;margin-bottom:-6px"><FONT SIZE="1">&nbsp;</FONT></P>
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<TD WIDTH="5%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(d)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">provided that a public market for the Company&#146;s stock exists: (1) through a &#147;same day sale&#148; commitment from Optionee and a broker-dealer that is a member of the
National Association of Securities Dealers (an &#147;<B><I>NASD Dealer</I></B>&#148;) 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; <U>or</U> (2) through a &#147;margin&#148; 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 </FONT></TD></TR></TABLE> <P STYLE="margin-top:0px;margin-bottom:-6px"><FONT SIZE="1">&nbsp;</FONT></P>
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<TD WIDTH="5%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">(e)</FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">by any combination of the foregoing. </FONT></TD></TR></TABLE> <P STYLE="margin-top:0px;margin-bottom:-6px"><FONT SIZE="1">&nbsp;</FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px; margin-left:4%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">4.4 <U>Tax Withholding</U>. Prior to the issuance of the Shares upon exercise of this Option, Optionee must pay or provide for all
applicable income tax and social insurance withholding obligations of the Company or its Subsidiary (&#147;Employer&#148;). The Company makes no representations or undertakings regarding the tax treatment of the Option. The liability for all
applicable taxes is Optionee&#146;s responsibility. Where Optionee&#146;s Employer is liable to account for any sum in respect of income tax or social insurance withholding, the Option may not be exercised, assigned or released unless Optionee has
(i) delivered a check to the Employer sufficient to discharge the applicable taxes due; or (ii) in the case of an Option exercise, arranged to sell a sufficient number of Shares which Optionee is entitled to receive upon the exercise of </FONT>
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<FONT FACE="Times New Roman" SIZE="2">the Option through a broker and instructed the broker to immediately remit sufficient funds from the sale of such Shares to enable the Employer to satisfy
the taxes due. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:-6px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:4%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">4.5 <U>NIC Joint Election</U>.
Notwithstanding any other terms and conditions contained in this Agreement or any other document, Optionee agrees that he or she will be liable for the Employer&#146;s secondary Class A National Insurance Contributions (&#147;NIC&#148;) arising upon
the exercise, assignment, release or other chargeable event in relation to the Option. Optionee will be required to sign a UK Inland Revenue approved election made pursuant to paragraph 3B(1) of Schedule 1 of the Social Security Contributions and
Benefits Act 1992 within 30 days of being provided the election form by the Employer. If Optionee fails to sign the election within the 30 day period, the Option will lapse. For the avoidance of doubt, this subsection 4.5 does not purport to
transfer any secondary NIC liability to Optionee without a signed election to this effect. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:-6px"><FONT SIZE="1">&nbsp;</FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px; margin-left:4%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">4.6 <U>Issuance of Shares</U>. 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&#146;s authorized assignee, or Optionee&#146;s legal representative, and shall deliver certificates representing the Shares with the appropriate legends affixed
thereto. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B>5. <U>Compliance with Laws and
Regulations</U>.</B> 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&#146;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. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2"><B>6. <U>Nontransferability of Option</U>.</B> 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. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT
SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B>7. <U>Privileges of Stock Ownership</U>.</B> Optionee shall not have any of the rights of a stockholder with respect to
any Shares until the Shares are issued to Optionee. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B>8.
<U>Interpretation</U>.</B> 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. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B>9. <U>Entire Agreement</U>.</B> The
Plan is incorporated herein by reference. This Agreement, the Certificate, 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. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>



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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B>10. <U>Notices</U>.</B> 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 E*Trade&#146;s website 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. </FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B>11. <U>Successors and Assigns</U>.</B> 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&#146;s heirs, executors, administrators, legal representatives, successors and assigns. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B>12. <U>Governing Law</U>.</B> 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. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2"><B>13. <U>Acceptance</U>.</B> 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. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B>IN WITNESS
WHEREOF</B>, 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. </FONT></P> <P
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<TD VALIGN="top" COLSPAN="3"><FONT FACE="Times New Roman" SIZE="2"><B>LEXAR MEDIA, INC.</B></FONT></TD></TR>
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