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                                                                    EXHIBIT 10.2


                                                                 NO.
                                                                    ------------

                            VIRAGE LOGIC CORPORATION

                           1997 EQUITY INCENTIVE PLAN

                             STOCK OPTION AGREEMENT

               This Stock Option Agreement (the "AGREEMENT") is made and entered
into as of the date of grant set forth below (the "DATE OF GRANT") by and
between Virage Logic Corporation, a California corporation (the "COMPANY"), and
the participant named below (the "PARTICIPANT"). Capitalized terms not defined
herein shall have the meaning ascribed to them in the Company's 1997 Equity
Incentive Plan (the "PLAN").

PARTICIPANT:
                              --------------------------------------------------
SOCIAL SECURITY NUMBER:
                              --------------------------------------------------
ADDRESS:
                              --------------------------------------------------
TOTAL OPTION SHARES:
                              --------------------------------------------------
EXERCISE PRICE PER SHARE:
                              --------------------------------------------------
DATE OF GRANT:
                              --------------------------------------------------
FIRST VESTING DATE:
                              --------------------------------------------------
EXPIRATION DATE:
                              --------------------------------------------------
                             (unless earlier terminated under Section 5.6 of the
                              Plan)

TYPE OF STOCK OPTION

(CHECK ONE):                        [ ] INCENTIVE STOCK OPTION
                                    [ ] NONQUALIFIED STOCK OPTION

               1. GRANT OF OPTION. The Company hereby grants to Participant an
option (this "OPTION") to purchase the total number of shares of Common Stock of
the Company set forth above as Total Option Shares (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. If designated as an
Incentive Stock Option above, the Option is intended to qualify as an "incentive
stock option" (the "ISO") within the meaning of Section 422 of the Internal
Revenue Code of 1986, as amended (the "CODE").

               2. EXERCISE PERIOD AND VESTING SCHEDULE.


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                      2.1 Exercise Period and Vesting Schedule of Option. This
Option is immediately exercisable although the Shares issued upon exercise of
the Option will be subject to the restrictions on transfer and Repurchase Option
set forth in Section 8 and 9 below. Provided Participant continues to provide
services to the Company or any Subsidiary or Parent of the Company, the Shares
issuable upon exercise of this Option shall not vest with respect to any of the
Shares until _____________ (the "First Vesting Date"); (b) on the First Vesting
Date the Option shall vest as to ______________ percent (_ %) of the Shares; and
(c) thereafter each year on the anniversary of the First Vesting Date the Option
shall vest as to an additional ____ percent (_%) of the Shares until this Option
is vested with respect to 100% of the Shares. If application of the vesting
percentage causes a fractional share, such share shall be rounded down to the
nearest whole share. Notwithstanding any provision in the Plan or this Agreement
to the contrary, Options for Unvested Shares (as defined in Section 2.2 of this
Agreement will not be exercisable on or after Participant's Termination Date.

                    [ALTERNATIVE #2: MONTHLY VESTING SCHEDULE

                      2.2 Exercise Period and Vesting Schedule of Option. This
Option is immediately exercisable although the Shares issued upon exercise of
the Option will be subject to the restrictions on transfer and Repurchase Option
set forth in Section 8 and 9 below. Provided Participant continues to provide
services to the Company or any Subsidiary or Parent of the Company, the Shares
issuable upon exercise of this Option shall not vest with respect to any of the
Shares until _________________ (the "First Vesting Date"); (b) on the First
Vesting Date the Option shall vest as to ______ percent (_ %) of the Shares; and
(c) thereafter at the end of each full succeeding month the Option will become
vested and as to an additional ____ percent (_%) of the Shares until the Shares
are vested with respect to one hundred percent (100%) of the Shares. If
application of the vesting percentage causes a fractional share, such share
shall be rounded down to the nearest whole share for each month except for the
last month in such vesting period, at the end of which last month this Option
shall become exercisable for the full remainder of the Shares.]

                       [ALTERNATIVE #3: VESTING SCHEDULE]

                      2.3 Exercise Period and Vesting Schedule of Option. This
Option is immediately exercisable although the Shares issued upon exercise of
the Option will be subject to the restrictions on transfer and Repurchase Option
set forth in Section 8 and 9 below. Provided Participant continues to provide
services to the Company or any Subsidiary or Parent of the Company, the Shares
issuable upon exercise of this Option shall not vest with respect to any of the
Shares until _________________ (the "First Vesting Date"); (b) on the First
Vesting Date the Option shall vest as to _____ percent (__ %) of the Shares; and
(c) thereafter the Option shall become vested as to additional portions of the
Shares as follows:


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                                                            Cumulative
On or after:                    But before:                   Number
-----------                     ----------                of vested shares:
                                                          ----------------

____________, 20__           ___________, 20___            _____________

____________, 20__           ___________, 20___            _____________

____________, 20__           ___________, 20___            _____________

____________, 20__           ___________, 20___            _____________

____________, 20__           ___________, 20___            _____________

                              Total Option Shares:         _____________


                      2.4 Vesting of Options. Shares that are vested pursuant to
the schedule set forth in Section 2.1 are "VESTED SHARES." Shares that are not
vested pursuant to the schedule set forth in Section 2.1 are "UNVESTED SHARES."

                      2.5 Expiration. The Option shall expire on the Expiration
Date set forth above or earlier as provided in Section 3 below or pursuant to
Section 5.6 of the Plan.

               3. TERMINATION

                      3.1 Termination for Any Reason Except Death, Disability or
Cause. If Participant is Terminated for any reason, except death, Disability or
for Cause, the Option, to the extent (and only to the extent) that it would have
been exercisable by Participant on the Termination Date, may be exercised by
Participant 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
Participant is Terminated because of death or Disability of Participant (or
Participant dies within three (3) months of Termination when Termination is for
any reason other than Participant's Disability or for Cause), the Option, to the
extent that it is exercisable by Participant on the Termination Date, may be
exercised by Participant (or Participant's legal representative) no later than
twelve (12) months after the Termination Date, but in any event no later than
the Expiration Date. Any exercise beyond (i) three (3) months after the
Termination Date when the Termination is for any reason other than the
Participant's death or disability, within the meaning of Section 22(e)(3) of the
Code; or (ii) twelve (12) months after the Termination Date when the termination
is for Participant's disability, within the meaning of Section 22(e)(3) of the
Code, is deemed to be an NQSO.


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                      3.3 Termination for Cause. If Participant is Terminated
for Cause, then the Option will expire on Participant's Termination Date, or at
such later time and on such conditions as are determined by the Committee.

                      3.4 No Obligation to Employ. Nothing in the Plan or this
Agreement shall confer on Participant 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 Participant'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, Participant (or in the case of exercise after Participant's death or
incapacity, Participant'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 Committee from time to time (the "EXERCISE AGREEMENT"), which
shall set forth, inter alia, (i) Participant's election to exercise the Option,
(ii) the number of Shares being purchased, (iii) any restrictions imposed on the
Shares and (iv) any representations, warranties and agreements regarding
Participant's investment intent and access to information as may be required by
the Company to comply with applicable securities laws. If someone other than
Participant exercises the Option, then such person must submit documentation
reasonably acceptable to the Company verifying that such person has the legal
right to exercise the Option.

                      4.2 Limitations on Exercise. The 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. The Option
may not be exercised as to fewer than one hundred (100) Shares unless it is
exercised as to all Shares as to which the 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
                      Participant;

             (b)      by surrender of shares of the Company's Common Stock
                      that (i) either (A) 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 (B) were obtained by
                      Participant in the open public

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                    market; and (ii) are clear of all liens, claims,
                    encumbrances or security interests;

            (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 shall 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 Participant
                    for services rendered;

            (e)     provided that a public market for the Company's stock
                    exists: (i) through a "same day sale" commitment from
                    Participant and a broker-dealer that is a member of the
                    National Association of Securities Dealers (an "NASD
                    DEALER") whereby Participant irrevocably elects to
                    exercise the Option and to sell a portion of the Shares
                    so purchased sufficient to pay for the total Exercise
                    Price and whereby the NASD Dealer irrevocably commits
                    upon receipt of such Shares to forward the total
                    Exercise Price directly to the Company, or (ii) through
                    a "margin" commitment from Participant and an NASD
                    Dealer whereby 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 total Exercise Price, and whereby the NASD Dealer
                    irrevocably commits upon receipt of such Shares to
                    forward the total 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 the Option, Participant must pay or provide for any applicable
federal, state and local withholding obligations of the Company. If the
Committee permits, Participant may provide for payment of withholding taxes upon
exercise of the 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 Participant
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
Participant, Participant's

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authorized assignee, or Participant's legal representative, and shall deliver
certificates representing the Shares with the appropriate legends affixed
thereto.

               5. NOTICE OF DISQUALIFYING DISPOSITION OF ISO SHARES. If the
Option is an ISO, and if Participant sells or otherwise disposes of any of the
Shares acquired pursuant to the ISO on or before the later of (i) the date two
(2) years after the Date of Grant, and (ii) the date one (1) year after transfer
of such Shares to Participant upon exercise of the Option, Participant shall
immediately notify the Company in writing of such disposition. Participant
agrees that Participant may be subject to income tax withholding by the Company
on the compensation income recognized by Participant from the early disposition
by payment in cash or out of the current wages or other compensation payable to
Participant.

               6. COMPLIANCE WITH LAWS AND REGULATIONS. The exercise of the
Option and the issuance and transfer of Shares shall be subject to compliance by
the Company and Participant 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. Participant 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.

               7. NONTRANSFERABILITY OF OPTION. The Option may not be
transferred in any manner other than by will or by the laws of descent and
distribution and may be exercised during the lifetime of Participant only by
Participant or in the event of Participant's incapacity, by Participant's legal
representative. The terms of the Option shall be binding upon the executors,
administrators, successors and assigns of Participant.

               8. COMPANY'S REPURCHASE OPTION FOR UNVESTED SHARES. The Company,
or its assignee, shall have the option to repurchase Participant's Unvested
Shares (as defined in Section 2.2 of this Agreement) on the terms and conditions
set forth in the Exercise Agreement (the "REPURCHASE OPTION") if Participant is
Terminated (as defined in the Plan) for any reason, or no reason, including
without limitation Participant's death, Disability (as defined in the Plan),
voluntary resignation or termination by the Company with or without Cause.
Notwithstanding the foregoing, the Company shall retain the Repurchase Option
for Unvested Shares only as to that number of Unvested Shares (whether or not
exercised) that exceeds the number of shares which remain unexercised.

               9. COMPANY'S RIGHT OF FIRST REFUSAL. Unvested Shares may not be
sold or otherwise transferred by Participant without the Company's prior written
consent. Before any Vested Shares held by Participant or any transferee of such
Vested Shares may be sold or otherwise transferred (including without limitation
a transfer by gift or operation of law), the Company and/or its assignee(s)
shall have an assignable right of

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first refusal to purchase the Vested Shares to be sold or transferred on the
terms and conditions set forth in the Exercise Agreement (the "RIGHT OF FIRST
REFUSAL"). The Company's Right of First Refusal will terminate when the
Company's securities become publicly traded.

               10. TAX CONSEQUENCES. Set forth below is a brief summary as of
the Effective Date of the Plan of some of the federal and California tax
consequences of exercise of the Option and disposition of the Shares. THIS
SUMMARY IS NECESSARILY INCOMPLETE, AND THE TAX LAWS AND REGULATIONS ARE SUBJECT
TO CHANGE. PARTICIPANT SHOULD CONSULT A TAX ADVISER BEFORE EXERCISING THE OPTION
OR DISPOSING OF THE SHARES.

                      10.1 Exercise of ISO. If the Option qualifies as an ISO,
there will be no regular federal or California income tax liability upon the
exercise of the Option, although the excess, if any, of the Fair Market Value of
the Shares on the date of exercise over the Exercise Price will be treated as a
tax preference item for federal alternative minimum tax purposes and may subject
the Participant to the alternative minimum tax in the year of exercise.

                      10.2 Exercise of Nonqualified Stock Option. If the Option
does not qualify as an ISO, there may be a regular federal and California income
tax liability upon the exercise of the Option. Participant will be treated as
having received compensation income (taxable at ordinary income tax rates) equal
to the excess, if any, of the Fair Market Value of the Shares on the date of
exercise over the Exercise Price. If Participant is a current or former employee
of the Company, the Company may be required to withhold from Participant's
compensation or collect from Participant and pay to the applicable taxing
authorities an amount equal to a percentage of this compensation income at the
time of exercise.

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

                          (a) Incentive 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 an ISO and are disposed of more than two (2) years
after the Date of Grant, any gain realized on disposition of the Shares will be
treated as long term capital gain for federal and California income tax
purposes. If Shares purchased under an ISO are disposed of within the applicable
one (1) year or two (2) year period, any gain realized on such disposition will
be treated as compensation income (taxable at ordinary income rates) to the
extent of the excess, if any, of the Fair Market Value of the Shares on the date
of exercise over the Exercise Price.

                          (b) 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

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exercise of an NQSO, any gain realized on disposition of the Shares will be
treated as long term capital gain.

                          (c) Withholding. The Company may be required to
withhold from the Participant's compensation or collect from the Participant and
pay to the applicable taxing authorities an amount equal to a percentage of this
compensation income.

                      10.4 Section 83(b) Election for Unvested Shares. With
respect to Unvested Shares, which are subject to the Repurchase Option, unless
an election is filed by the Participant with the Internal Revenue Service (and,
if necessary, the proper state taxing authorities), within 30 days of the
purchase of the Unvested Shares, electing pursuant to Section 83(b) of the Code
(and similar state tax provisions, if applicable) to be taxed currently on any
difference between the Exercise Price of the Unvested Shares and their Fair
Market Value on the date of purchase, there may be a recognition of taxable
income (including, where applicable, alternative minimum taxable income) to the
Participant, measured by the excess, if any, of the Fair Market Value of the
Unvested Shares at the time they cease to be Unvested Shares, over the Exercise
Price of the Unvested Shares.

               11. PRIVILEGES OF STOCK OWNERSHIP. Participant shall not have any
of the rights of a shareholder with respect to any Shares until the Shares are
issued to Participant.

               12. INTERPRETATION. Any dispute regarding the interpretation of
this Agreement shall be submitted by Participant 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 Participant.

               13. ENTIRE AGREEMENT. The Plan is incorporated herein by
reference. This Agreement and the Plan constitute the entire agreement of the
parties and supersede all prior undertakings and agreements with respect to the
subject matter hereof

               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 Participant shall be in writing and
addressed to Participant 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: (i) personal
delivery; (ii) three (3) days after deposit in the United States mail by
certified or registered mail (return receipt requested); (iii) one (1) business
day after deposit with any return receipt express courier (prepaid); or (iv) one
(1) business day after transmission by facsimile, rapifax or telecopier.


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               15. SUCCESSORS AND ASSIGNS. The Company may assign any of its
rights under this Agreement, including its rights to purchase Shares under the
Repurchase Option and the Right of First Refusal. 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 Participant and Participant's heirs, executors,
administrators, legal representatives, successors and assigns.

               16. GOVERNING LAW. This Agreement shall be governed by and
construed in accordance with the laws of the State of California as such laws
are applied to agreements between California residents entered into and to be
performed entirely within California. If any provision of this Agreement is
determined by a court of law to be illegal or unenforceable, then such provision
will be enforced to the maximum extent possible and the other provisions will
remain fully effective and enforceable.

               17. ACCEPTANCE. Participant hereby acknowledges receipt of a copy
of the Plan and this Agreement. Participant has read and understands the terms
and provisions thereof, and accepts the Option subject to all the terms and
conditions of the Plan and this Agreement. Participant acknowledges that there
may be adverse tax consequences upon exercise of the Option or disposition of
the Shares and that Participant should consult a tax adviser prior to such
exercise or disposition.

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

VIRAGE LOGIC CORPORATION            PARTICIPANT

By:
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                                    (Signature)



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(Please print name)                 (Please print name)



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(Please print tile)



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