Document:

Prepared by MERRILL CORPORATION

Exhibit 10.1  

DISTRIBUTION, MANUFACTURING AND LICENSE AGREEMENT  

    THIS DISTRIBUTION, MANUFACTURING, AND LICENSE AGREEMENT (the "Agreement") is made and entered into as of this
17th day of April, 2001 (the "Effective Date") by and between QuickLogic Corporation, a Delaware corporation ("QuickLogic"), V3 Semiconductor, Inc., a Nevada corporation ("V3
Semiconductor") and V3 Semiconductor, Corp., an Ontario corporation ("V3 Canada"). V3 Semiconductor and V3 Canada shall be collectively referred to as "V3". Each of QuickLogic and V3 are hereafter
referred to as a "Party"; and together hereafter referred to as the "Parties". 

RECITALS  

    A.  Whereas, V3 is in the business of developing and manufacturing on its own or through its suppliers, and selling on
its own or through other parties, the Products (as such term is defined below). 

    B.  Whereas, QuickLogic is willing to become V3's exclusive worldwide reseller and licensee for the Products. 

    C.  Whereas, the Parties have entered into a Asset Purchase Agreement (as defined below) and other Related Agreements
(as defined below) concurrently with this Agreement. 

    D.  Whereas, the Parties also desire that QuickLogic manufacture or have manufactured, and sell on its own or through
other parties, the Products using V3 Technology (as defined below) that is licensed to QuickLogic in accordance with the terms and conditions of the Agreement. 

    NOW, THEREFORE, in consideration of the mutual promises provided by each Party and contained in the Agreement, the Parties agree as
follows: 

AGREEMENT  

1.  DEFINITIONS. As used herein: 

    1.1  "Agreement" will have the meaning given to it in the introductory paragraph. 

    1.2  "Asset Purchase Agreement" means the Asset Purchase Agreement of even date herewith by and between V3 and
QuickLogic. 

    1.3  "Change of Control" means, with respect to a Party, the occurrence of any of the following events: (a) any
consolidation or merger of such Party with or into any entity in which the holders of such Party's outstanding shares immediately before such consolidation or merger do not, immediately after such
consolidation or merger, retain shares representing at least eighty percent (80%) of the voting power of the surviving entity or shares representing at least eighty percent (80%) of the voting power
of an entity that owns, directly or indirectly, the surviving entity; (b) the sale, transfer, or assignment of shares of such Party representing twenty percent (20%) or more of the voting power
of all of such Party's outstanding voting shares to an acquiring party or group; or (c) the sale of all or substantially all of such Party's assets. 

    1.4  "Effective Date" will have the meaning given to it in the introductory paragraph. 

    1.5  "Employee Cost" means an hourly rate determined by adding amounts for employer-paid life, health,
dental and AD&D insurance. A schedule of Employee Cost by employee will be maintained by V3 and updated from time to time to reflect changes in the information. 

    1.6  "Gross Margin" means the difference between the Net Selling Price and the Landed Cost. 

    1.7  "Intellectual Property Rights" means any patents, patent rights, copyrights, trade secrets, trade names, service
marks and any other similar titles, rights, and interests, and intangible assets 

recognized under any laws, or international conventions and in any country or any jurisdiction in the world, as intellectual creations to which rights of ownership accrue, and all registrations,
applications, disclosures, renewals, extensions, continuations or reissues of the foregoing now or hereafter in force. 

    1.8  "Landed Cost" means the Product purchase price invoiced to V3 or QuickLogic, as the case may be, including freight,
taxes and duties. 

    1.9  "Net Selling Price" means any amount received from a customer for the sale of a product less any
set-off, charge, or debit of any sort; the Parties agree that in the case a sale made by reseller or a distributor of QuickLogic, the final Net Selling Price will be calculated only upon
sale of the Product to the end user. 

    1.10  "Non-Disclosure Agreement" means the Non-Disclosure Agreement dated January 30,
2001 made by and between V3 and QuickLogic. 

    1.11  "Party" and "Parties" will have the meanings given to it in the
introductory paragraph. 

    1.12  "Person" means and includes an individual, a partnership, a corporation (including a business trust), a joint
stock company, a limited liability company, an unincorporated association, a joint venture or other entity or a governmental authority. 

    1.13  "Products" means all current and future V3 products. 

    1.14  "QuickLogic Technology" means the items of Technology that QuickLogic owns prior to the Effective Date and any
items acquired by, developed, created for or by QuickLogic thereafter. 

    1.15  "Related Agreements" means the Asset Purchase Agreement, and the documents and instruments delivered pursuant to
the Asset Purchase Agreement or referenced therein, including all the exhibits attached to the Asset Purchase Agreement. 

    1.16  "Subsidiary" means (a) any corporation of which more than fifty percent (50%) of the issued and outstanding
equity securities having ordinary voting power to elect a majority of the board of directors of such corporation is at the time directly or indirectly owned or controlled by a Party, (b) any
partnership, joint venture, or other association of which more than fifty percent (50%) of the equity interest having the power to vote, direct or control the management of such partnership, joint
venture or other association is at the time directly or indirectly owned and controlled by a Party, (c) any other entity included in the financial statements of a Party on a consolidated basis. 

    1.17  "Technology" means any and all technology, technical information, and manufacturing information, including
technical data, inventions (whether or not patented or patentable), designs, concepts, processes, algorithms, formulae, techniques, know-how, software, specifications, flow charts,
annotations, data books, models, test programs, drawings, works of authorship, and any other technical subject matter. 

    1.18  "Transition Activities" means (a) the fulfillment by QuickLogic of any (i) binding obligations that
QuickLogic has or will have to supply Products pursuant to firm orders for the Products arising on or before the effective date of termination of this Agreement, and (ii) orders for Products
that QuickLogic has or will have in connection with sales or other proposals that have been submitted to third parties on the date of termination of this Agreement, or that may arise in connection
with any end of life requirements for the Products; (b) the manufacture to completion, by QuickLogic or other Persons, of all units of Products in the process of being manufactured on the date
of termination of this Agreement, and the marketing, sale, lease, distribution, and installation of such units and other completed units of Products in finished goods inventory; and (c) the
provision of service and support for the Products. 

    1.19  "V3" will have the meanings given to it in the introductory paragraph provided that any obligations, rights and
liabilities imposed on, or granted to, "V3" pursuant to this Agreement shall apply jointly to V3 Semiconductor and V3 Canada. Use of the term "V3" (whether in a singular or plural form) shall always
be construed to create a joint obligation, a joint right or a joint liability for both V3 Semiconductor and V3 Canada. An obligation or right shall be construed to be limited to 

either V3 Semiconductor and V3 Canada only if the term "V3 Semiconductor" or "V3 Canada" is specifically used in lieu and place of V3. 

    1.20  "V3 Technology" means all Technology that is acquired or developed by or for V3 (prior to the Effective Date) for
use in or directly related to the Products (whether such Technology is owned or licensed from a third party by V3); but in all cases excluding any and all QuickLogic Technology. 

2.  APPOINTMENT OF QUICKLOGIC AS EXCLUSIVE RESELLER  

    2.1  General. V3 hereby appoints QuickLogic as its exclusive worldwide reseller for the Products and QuickLogic agrees
to act as its exclusive reseller to distribute the Products, subject to the terms and conditions of this Agreement. 

    2.2  Sub-resellers. V3 grants to QuickLogic the exclusive right to appoint sub-resellers of the
Products, provided that such appointment shall be subject to V3's approval, which approval shall not be unreasonably withheld or delayed. V3 hereby grants QuickLogic the authority to renegotiate
and/or terminate on V3's behalf any existing agreement between V3 and its resellers and distributors, provided that such renegotiation and/or termination shall be subject to V3's approval, which
approval shall not be unreasonably withheld or delayed. Reseller's and distributor's commissions or fees incurred prior to the Effective Date shall be borne solely by V3. Reseller's and distributor's
commissions or fees incurred pursuant to this Agreement after the Effective Date shall be borne solely by QuickLogic. 

    2.3  General Assistance. V3 agrees to assist QuickLogic in promoting the solicitation of requests for the Products and
to furnish QuickLogic, without charge, except as may be otherwise agreed upon, electronic versions and reasonable quantities of hard copy versions of technical, advertising and selling data and
literature concerning the Products, which V3 may from time to time produce or have available for trade circulation. Within five (5) days from the Effective Date, V3 shall provide QuickLogic
with a complete list of V3 past and current customers and the revenue generated from those customers in the past thirty six (36) months (the "Customer Information"). Such Customer Information
shall be considered the "Confidential Information" of V3 subject to the terms of Section 6 below. As soon as practicable and in any event within five (5) days of the effective date of
termination of this Agreement, QuickLogic shall return the materials referred to in the first sentence of this Section 2.3 and any Customer Information supplied by V3 to QuickLogic hereunder,
shall destroy any copies made of any Customer Information and shall supply V3 with written notice certifying that the foregoing has been done. 

    2.4  Pricing. The sales price for Products sold hereunder by QuickLogic in its capacity as agent for V3 shall be
mutually agreed between the Parties. Notwithstanding the foregoing, QuickLogic shall be free to unilaterally determine the sales price of any Products for which it has obtained title to. 

    2.5  Existing Inventory. V3 retains ownership of its existing inventory provided that V3 hereby grants QuickLogic the
exclusive right to sell the existing V3 Product inventory and to fulfill any firm order received by V3 as of the Effective Date. QuickLogic shall have the option to purchase items included in such
existing inventory from V3 at Landed Cost ("Existing Inventory), provided that the revenue generated from the sale of such Existing Inventory shall be subject to Section 5.1. On the effective
date
of termination of this Agreement, V3 shall repurchase from QuickLogic, at Landed Cost, any remaining and unsold items of Existing Inventory purchased by QuickLogic during the Term. 

    2.6  Trademark License. V3 hereby grants QuickLogic a non-exclusive, royalty-free, worldwide,
fully paid-up right and license for the term of this Agreement to use the materials provided to QuickLogic pursuant to Section 2.3 of this Agreement as well as any associated
trademarks, logos and trade names of V3, for the purpose of selling, marketing and promoting the Products in accordance with the terms and conditions of this Agreement. 

    2.7  Specific Responsibilities. Notwithstanding anything to the contrary, V3 shall be responsible for: 

    (a) verifying the accuracy of all product claims, representations, warranties and information made or given by V3 with
respect to the Products, whether pursuant to the materials supplied to QuickLogic pursuant to Section 2.3 above or otherwise, and related services (collectively "Product Claims"); 

    (b) confirming that all such Product Claims are supportable by reliable data in V3's possession; 

    (c) expeditiously reviewing all materials created by QuickLogic for V3 to ensure their accuracy and completeness; and 

    (d) confirming that the Products comply with all applicable laws, regulations or rules, including those relating to
labeling. 

    2.8  Disclaimer. In no event whatsoever shall QuickLogic be responsible or liable to V3 or any third party for any
claims, damages, losses or liabilities related to or arising out of (i) the ownership, validity and/or defense of the trademarks used by V3, (ii) the accuracy or completeness of any
Product Claims, or (iii) the failure of the Products to comply with all applicable laws, regulations or rules, including those relating to labeling. In no event whatsoever shall V3 be
responsible or liable to QuickLogic, or any third party for any claims, damages, losses or liabilities related to or arising out of the accuracy or completeness of any product claims, other than
Product Claims, made by QuickLogic with respect to the Products. 

    2.9  Ownership and Responsibility for the Products. Except with respect to existing inventory purchased by QuickLogic,
V3 shall at all times bear the risk of loss with respect to its Products, and at no point in the sales cycle, including before and after the sale of a Product is effected, shall ownership of V3's
Products, or liabilities related to such Products transfer, or be construed to transfer, to QuickLogic. 

3.  MANUFACTURE OF PRODUCTS  

    3.1  Manufacturing Obligations. V3 will deliver to QuickLogic and its suppliers in accordance with QuickLogic's
reasonable directions, and no later than the dates and time frames set forth herein any and all documentation in V3's possession or control reasonably necessary for QuickLogic to manufacture or have
manufactured the Products ("Manufacturing Materials"). Upon delivery of such Manufacturing Materials, QuickLogic will use reasonable efforts to manufacture or have manufactured Products for delivery
to third parties. V3 will provide reasonable assistance, including technical assistance, to QuickLogic in connection with the manufacturing of the Products. 

    3.2  Existing Manufacturing Contracts. V3 hereby grants QuickLogic the authority to renegotiate and/or terminate on V3's
behalf any existing agreement between V3 and its suppliers and manufacturing partners, provided that such renegotiation and/or termination shall be subject to V3's approval, which approval shall not
be unreasonably withheld or delayed. The Parties will use reasonable efforts to cooperate with each other in all matters pertaining to existing supplier, manufacturing, foundry and other similar
agreements. This includes the execution of any necessary documents. 

    3.3  Exclusive Right and License to V3 Technology. During the term of this Agreement, V3 hereby grants to QuickLogic an
irrevocable (except in accordance with Section 12.2(c)), exclusive, royalty-bearing in accordance with Section 5.2, nontransferable, worldwide, and for manufacturing purposes
sublicensable to and through other Persons, present right and license under V3's Intellectual Property Rights to use, reproduce, display, perform, import, distribute (directly and indirectly), modify
and create derivative works of the V3 Technology to make, have made, use, sell, offer to sell, lease, offer to lease, export, and distribute (directly or indirectly) the Products. The Parties hereby
acknowledge and agree that for the purpose of interpretation of this Section 3.3, the term "exclusive" means that V3 will not offer to sell, sell, offer to lease, lease, transfer, or distribute
to parties other than QuickLogic the 

Products during the period that begins on the Effective Date and ends on termination of this Agreement. V3 hereby acknowledges and agrees that it will not enter into any other development, licensing,
distribution, or other agreement or arrangement with any third party pursuant to which such party will use V3 Technology to make, have made, offer to sell, sell, offer to lease, lease, transfer, or
distribute (directly or indirectly) the Products, or otherwise violate the foregoing exclusive right and license. 

    3.4  Nonexclusive Right and License to V3 Technology. During the period that begins on termination of this Agreement and
ends one (1) year thereafter, V3 hereby grants to QuickLogic an irrevocable, nonexclusive, royalty-bearing in accordance with Section 9.3, nontransferable, sublicensable to and through
other Persons, worldwide, present right and license under V3's Intellectual Property Rights to use, reproduce, display, perform, import, and distribute (directly and indirectly) the V3 Technology to
make, have made, use, sell, offer to sell, lease, offer to lease, import, and distribute (directly and indirectly) the Products, in each case solely in furtherance of the Transition Activities
described in Section 1.18. During the period that begins on the date of termination of this Agreement and continues on a perpetual basis thereafter, V3 hereby grants to QuickLogic an
irrevocable, nonexclusive, royalty-free, nontransferable, sublicensable to and through other Persons, worldwide, present right and license under V3's Intellectual Property Rights to use,
reproduce, display, perform, import, and distribute (directly and indirectly), modify and create derivative works of, the V3 Technology to perform the Transition Activities described in
Section 1.18. 

4.  OWNERSHIP  

    4.1  Ownership of V3 Technology. V3 is and will be the sole and exclusive owner of all right, title, and interest in and
to the V3 Technology and any Intellectual Property Rights relating thereto. V3 will have the exclusive worldwide right to apply for and register all Intellectual Property Rights. 

    4.2  Ownership of QuickLogic Property. QuickLogic is and will be the sole and exclusive owner of all right, title, and
interest in and to the QuickLogic Technology and all modifications, improvements, enhancement, additions or derivative works to the V3 Technology prepared or developed by or for QuickLogic, and all
Intellectual Property Rights relating thereto. QuickLogic will have the exclusive worldwide right to apply for and register all Intellectual Property Rights. 

    4.3  Reservation of Rights. Except as otherwise provided in Section 4.2, nothing in this Agreement will be
construed to convey or transfer the ownership of any Technology and any related Intellectual Property Rights thereto from one Party to the other Party, and each Party acknowledges and agrees that, as
between the Parties, each Party is and will remain the sole and exclusive owner of all right, title, and interest in and to its Technology and any related Intellectual Property Rights thereto, and
that this Agreement does not affect any such ownership. Each Party also acknowledges and agrees that it acquires no rights or licenses under this Agreement to the other Party's Technology, and any
related Intellectual Property Rights thereto, other than the limited rights and licenses that are expressly granted by the other Party to it in this Agreement. 

5.  SALES FEES AND ROYALTIES  

    5.1  Sales Fees. QuickLogic shall collect all proceeds of Products sold hereunder by QuickLogic and shall remit to V3
fifty percent (50%) of the Gross Margin amount (for each Product sold) actually received from customers. Remittance to V3 shall be payable within fifteen (15) days after the end of the fiscal
month during which payment has been received from the customer. 

    5.2  Royalties for V3 Technology. For the exclusive license rights granted hereunder, QuickLogic shall pay V3 a royalty
fee of Ten Thousand US Dollars (US$ 10,000). Except as provided in this Section, no other royalties will be due and owing from QuickLogic to V3 for the use of V3 Technology. The Parties agree that in
the event this Agreement is terminated prior to the first anniversary date for any reason, QuickLogic shall be entitled to a full refund of the royalty paid hereunder. 

    5.3  Services. Services provided by V3 to QuickLogic in order to fulfill its obligations set forth in Section 2.3
shall be billed on an Employee Cost basis. 

    5.4  Occupation Fee. QuickLogic shall pre-pay a monthly fee of $360 per QuickLogic employee per month whose
routine place of business is located in V3's offices during the applicable month. The fee shall be assessed to reimburse V3's direct out-of-pocket costs such as rent,
utilities, telephone use, employee amenities and other related costs on a pro-rated basis. Amortization of physical equipment such as furniture, telephones, computers, and networks shall
not be included. 

    5.5  Reports, Records, and Audits. Each Party will provide to the other any reports on manufacturing costs or for sales
of Products that are necessary in order to ascertain the correct amount of money to be paid or received under this Agreement. The Parties will negotiate in good faith all other matters related to
reporting, record keeping, and auditing obligations under this Agreement. 

    5.6  Taxes. All matters relating to sales, use, import or export, value-added, or similar taxes that will become due
under this Agreement shall be negotiated in good faith on an arms length basis by the Parties in accordance with the best interests of the Parties. 

    6.  CONFIDENTIALITY. Confidentiality obligations of each Party will be as set forth in the Non-Disclosure
Agreement, the terms of which are hereby incorporated by reference into this Agreement. 

    7.  SOLICITATION OF EMPLOYEES. Notwithstanding any other agreements between the Parties, V3 will assist QuickLogic in
the solicitation of, up to fifteen (15), in aggregate, sales, marketing, application engineering and operations personnel employed by V3 as of the Effective Date to become employees of QuickLogic.
Upon notice of termination, QuickLogic will assist V3 in the solicitation of these individuals to return to employment with V3.  In all other respects, except as contemplated by the
Related Agreements, the prior agreements of QuickLogic with regard to the non-solicitation of employees of V3 remains in full force and effect. 

8.  WARRANTIES.  

    8.1  Authority. V3 warrants to QuickLogic that (i) it has the right to grant the rights and licenses granted to
QuickLogic as contemplated by this Agreement; (ii) there are no outstanding assignments, grants, licenses, encumbrances, obligations, or agreements (whether written, oral or implied) that
conflict with this Agreement and the rights granted or transferred herein; and (iii) consummating this Agreement and the transactions contemplated herein shall not violate any agreement or
understanding (whether written, oral, or implied) between V3 or any of its affiliates and any other Person. 

    8.2  Functionality. V3 warrants to QuickLogic that (i) the existing inventory of Products and Products in the
course of manufacture as of the Effective Date and (ii) any Products manufactured thereafter pursuant to V3's specifications and/or control, will be free of any material defects and will
function in accordance with the applicable specifications. 

    8.3  Services Performance. V3 warrants to QuickLogic that any services provided by V3 shall be performed in accordance
with the industry service level standards. 

9.  REPRESENTATIONS AND COVENANTS  

    9.1  V3 Representations and Covenants. V3 represents and covenants that it has the full power and authority to enter
into and carry out its obligations under this Agreement. 

    9.2  QuickLogic Representations and Covenants. QuickLogic represents and covenants that it has the full power and
authority to enter into and carry out its obligations under this Agreement. 

    9.3  Disclaimers. EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT AND IN THE ASSET PURCHASE AGREEMENT, NEITHER PARTY
MAKES ANY REPRESENTATIONS, COVENANTS OR WARRANTIES. 

10. INDEMNITIES  

10.1 General  

    (a) V3 Obligation. V3 will defend, indemnify, and hold harmless QuickLogic and its Subsidiaries, and each of their
respective officers, directors, employees, customers, agents, successors and assigns, from and against any and all claims, suits, actions, and proceedings (each of the foregoing, a "Claim")
(a) of infringement or misappropriation, based on the V3 Technology, of any Intellectual Property Rights of any third party; (b) that relate(s) to bodily injury, death, or physical
damage to tangible property caused by the willful, negligent, or intentional acts or omissions of V3; or (c) that relate(s) to any Product Claim; and V3 will pay all resulting liabilities,
damages, losses, penalties, fines, costs, and expenses (including reasonable attorneys' fees and expenses of litigation) that result from or are attributable to any such Claim(s). 

    (b) QuickLogic Obligation. Subject to V3's indemnification obligations under Section 10.1(a) above, QuickLogic
will defend, indemnify, and hold harmless V3 and its Subsidiaries, and each of their respective officers, directors, employees, customers, agents, successors and assigns, from and against any and all
Claim(s) (a) that relate(s) to bodily injury, death, or physical damage to tangible property caused by the willful, negligent, or intentional acts or omissions of QuickLogic; or (b) that
relate(s) to a product claim made by QuickLogic other than a Product Claim or which is not based on a Product
Claim with respect to the Products; and QuickLogic will pay all resulting liabilities, damages, losses, penalties, fines, costs, and expenses (including reasonable attorneys' fees and expenses of
litigation) that result from or are attributable to any such Claim(s). 

    10.2  Procedure. Each Party (the "Indemnitee") will promptly notify the other Party ("Indemnitor") in writing of any
Claim that Indemnitee intends to seek indemnification for, and the Indemnitor will have sole control of the defense and settlement thereof. The indemnity in this Section 10 will not apply to
amounts paid in settlement if such settlement is effected without the prior written consent of Indemnitor. In addition, Indemnitor will be relieved of its obligations under Section 10.1 only to
the extent Indemnitor's defense is compromised by (i) any failure by Indemnitee to deliver written notice of any such Claim; or (ii) the failure of Indemnitee to cooperate with, and
provide reasonable assistance to, Indemnitor and its legal representatives in the investigation, defense, and settlement of any Claim covered by this indemnification. 

11. LIMITATION OF LIABILITY  

    EXCEPT
PURSUANT TO, OR FOR ANY BREACHES OR VIOLATIONS OF, SECTIONS 3.3, 7, 8, and 10, UNDER NO CIRCUMSTANCES WILL EITHER PARTY BE LIABLE TO THE OTHER UNDER THIS AGREEMENT OR ANY OTHER
LEGAL THEORY FOR ANY INCIDENTAL, PUNITIVE, INDIRECT, SPECIAL, EXEMPLARY, EXTRAORDINARY, RELIANCE, OR CONSEQUENTIAL DAMAGES, OR LOST PROFITS IN CONNECTION WITH THIS AGREEMENT, EVEN IF THE OTHER PARTY
WAS ADVISED OF THE POSSIBILITY THEREOF. THIS SECTION 11 DOES NOT LIMIT EITHER PARTY'S LIABILITIES FOR BODILY INJURY OF A PERSON, DEATH, AND DAMAGE TO TANGIBLE PERSONAL OR REAL PROPERTY. EXCEPT
PURSUANT TO, FOR ANY BREACHES OR VIOLATIONS OF SECTIONS 3.3, 7, 8, and 10 NEITHER PARTY WILL BE LIABLE TO THE OTHER PARTY UNDER THIS AGREEMENT OR ANY OTHER LEGAL THEORY FOR ANY DAMAGES CAUSED IN
EXCESS OF FIVE HUNDRED THOUSAND U.S. DOLLARS ($500,000). ANY REMEDIES OBTAINED BY EITHER PARTY AGAINST THE OTHER WILL NOT BE AGGREGATED TO DETERMINE THE SATISFACTION OF THE LIMITATION OF LIABILITY
AMOUNT. 

12. TERM AND TERMINATION  

    12.1  Term of Agreement. This Agreement will be effective upon the Effective Date and, unless otherwise terminated
earlier in accordance with Section 12.2, will remain in full force and effect for a period of one (1) year thereafter. 

    12.2  Termination for Cause or Other Reasons.

    (a) Change of Control. If there is a Change of Control of V3, not involving QuickLogic, QuickLogic may, at its option,
upon written notice to V3, terminate this Agreement. 

    (b) Material Breach by V3. QuickLogic may terminate for cause this Agreement effective upon written notice to V3 if V3
materially breaches any covenant, agreement, representation, or warranty contained herein in any respect or materially breaches any of its obligations or agreements hereunder in any respect, and such
breach remains uncured within thirty (30) days after delivery of written notice thereof from QuickLogic describing the breach in reasonable detail. 

    (c) Material Breach by QuickLogic. V3 may terminate for cause this Agreement effective upon written notice to QuickLogic
if QuickLogic materially breaches any covenant, agreement, representation, or warranty contained herein in any respect or materially breaches any of its obligations or agreements hereunder in any
respect, and such breach remains uncured within thirty (30) days after delivery of written notice thereof from V3 describing the breach in reasonable detail. 

    (d) Convenience. Either Party may terminate this Agreement for convenience upon ninety (90) days prior written
notice to the other Party. After the Closing (as such term is defined in the Related Agreements), QuickLogic shall have the option to terminate this Agreement immediately upon delivery of a written
notice to V3. 

    (e) Termination of any Related Agreement. If any or all of the Related Agreements terminates QuickLogic may, at its
option, immediately terminate this Agreement or the licenses granted to V3 under this Agreement. 

    12.3  Survival of Rights and Obligations In accordance with their terms and conditions, Sections 1, 3.4, 4, 5, 6, 8, 10,
11, 12.3, and 13 will survive the expiration or earlier termination of this Agreement. 

13. MISCELLANEOUS  

    13.1  Force Majeure. Neither Party will be liable to the other for delays or failures in performance resulting from
causes beyond the reasonable control of that Party, including, but not limited to, acts of God, material shortages or rationing, riots, acts of war, governmental regulations, communication or utility
failures, or casualties. The affected Party will be excused from its performance hereunder to the extent that such performance is prevented, restricted, or interfered with as a result of any such
causes. 

    13.2  Export Control. Each Party will comply with all applicable export laws and regulations of the United States and
other jurisdictions in connection with its performance under this Agreement. 

    13.3  Relationship of Parties. The Parties are independent contractors under this Agreement and nothing in this
Agreement will be construed as creating any partnership, franchise, joint venture, agency, employer/employee, fiduciary, master/servant relationship, or other special relationship. Neither Party will
act in any manner that expresses or implies a relationship other than that of independent contractor, nor bind the other Party. 

    13.4  No Third Party Beneficiaries. Unless otherwise expressly provided, no provisions of this Agreement are intended or
will be construed to confer upon or give to any Person other than QuickLogic and V3 any rights, remedies, or other benefits under or by reason of this Agreement. 

    13.5  Equitable Relief. Each Party acknowledges and agrees that any breaches or violations by the other Party of
Sections 3.4, 4, 5, and 7 may cause the non-breaching Party irreparable damage for which the award of monetary damages would be inadequate. Consequently, the non-breaching
Party may seek to enjoin the breaching Party from any and all acts in violation of any such provisions, which remedy will be cumulative and not exclusive, and a Party may seek the entry of an
injunction enjoining any breach or threatened breach of such provisions, in addition to any other relief to which the non-breaching Party may be entitled at law or in equity. 

    13.6  Notices. All notices and other communications hereunder shall be in writing and shall be deemed given if delivered
personally or by commercial delivery service, or sent via telecopy (receipt confirmed) to the parties at the following addresses or telecopy numbers (or at such other address or telecopy numbers for a
party as shall be specified by like notice): 

if
to QuickLogic: 

QuickLogic Corporation

1277 Orleans Drive

Sunnyvale, California 94089, USA

Attention: President

Telephone No.: (408) 990-4000

Telecopy No.: (408) 990-4040 

with
a copy (which shall not constitute notice) to: 

Wilson
Sonsini Goodrich & Rosati

Professional Corporation

650 Page Mill Road

Palo Alto, California 94304-1050, USA

Attention: Aaron J. Alter, Esq.

Telephone No.: (650) 493-9300

Telecopy No.: (650) 493-6811 

and
to: 

Wilson
Sonsini Goodrich & Rosati

Professional Corporation

One Market, Spear Street Tower

Suite 3300

San Francisco, California 94105, USA

Attention: Steve L. Camahort, Esq.

Telephone: No.: (415) 947-2000

Telecopy No.: (415) 947-2099 

if
to V3: 

V3 Semiconductor, Inc.

250 Consumers Road

North York, Ontario, Canada M2J 4V6

Attention: President

Telephone No.: (416) 497-8884

Telecopy No.: (416) 497-1160 

with
a copy to (which shall not constitute notice) to: 

Latham &
Watkins

885 Third Avenue, Suite 1000

New York, New York 10022, USA

Attention: David M. Schwartzbaum, Esq.

Telephone No.: (212) 906-1200

Telecopy No.: (212) 751-4864 

    13.7  Publicity. Neither Party will disclose the terms or existence of this Agreement to any third party without the
consent of the other Party other than: (i) as required by law or any court or other governmental body (provided that the Party required to make such disclosure cooperates with the other Party
in seeking confidential treatment or otherwise seeking to limit or contest such mandatory disclosure in any lawful manner); (ii) in confidence to the legal counsel of such parties; or
(iii) in confidence, to accountants, banks, financing sources, and their advisors in connection with a contemplated financing, public offering, or acquisition or such party (provided that any
third party to whom the terms of this Agreement are to be disclosed signs a confidentiality agreement reasonably satisfactory to the other Party hereto before such disclosure is made). Each Party will
obtain the other's consent prior to any public announcement or press release concerning the terms and conditions of this Agreement. 

    13.8  Assignment. Neither Party may assign this Agreement, or assign its rights or delegate its obligations hereunder,
either in whole or in part, whether by operation of law or otherwise, without the prior written consent of the other Party. Notwithstanding the preceding sentence, QuickLogic may assign and/or
delegate its rights and obligations, respectively, in whole or in part to any of its Subsidiaries, provided that QuickLogic shall remain liable to V3 (in accordance with the terms and conditions of
this Agreement) for any such Subsidiary's acts or omissions with respect thereto following such assignment and or delegation. Any attempted assignment or delegation in violation of the foregoing will
be void. Subject to the foregoing, the rights and liabilities of the Parties under this Agreement will bind and inure to the benefit of the Parties' respective permitted successors and assigns. A
Change of Control will constitute an assignment for the purpose of interpretation of this Section. 

    13.9  Waiver and Modification. Failure by either Party to enforce any provision of this Agreement will not be deemed a
waiver of future enforcement of that or any other provision. Any waiver, amendment or other modification of any provision of this Agreement will be effective only if in writing and signed by the
Parties. 

    13.10  Severability. If for any reason a court of competent jurisdiction finds any provision of this Agreement to be
unenforceable, that provision of the Agreement will be enforced to the maximum extent permissible so as to effect the intent of the Parties, and the remainder of this Agreement will continue in full
force and effect. 

    13.11  Controlling Law and Jurisdiction. This Agreement and any action related thereto will be governed, controlled,
interpreted, and defined by and under the laws of the State of California and the United States. The Parties specifically disclaim the United Nations Convention on Contracts for the International Sale
of Goods. Each Party hereby irrevocably and unconditionally consents to jurisdiction for any action or proceeding that arises out of or results from this Agreement in a court located in Santa Clara
County, California, and waives any venue objections that such Party may have with respect to any such action or proceeding. 

    13.12  Construction. The headings used in this Agreement are for ease of reference only, and will not be used to
interpret, define, construe, or describe the scope or extent of any aspect of this Agreement. Unless otherwise expressly stated, when used in this Agreement, the word "including" means, "including but
not limited to." Each Party represents that it has had the opportunity to participate in the preparation of this Agreement and hence the Parties agree that the rule of construction that ambiguities be
resolved against the drafting Party will not apply to this Agreement. 

    13.13  Entire Agreement. This Agreement includes all exhibits, which are incorporated herein by reference, and
constitutes the entire agreement between the Parties with respect to the subject matter hereof, and supersedes and replaces all prior and contemporaneous understandings or agreements, written or oral,
regarding such subject matter, and will not be amended except by a written amendment that is completely executed by authorized agents of the Parties. Notwithstanding the foregoing, all exhibits hereto
will be developed incrementally during the term of this Agreement. 

    13.14  Counterparts. This Agreement may be executed in two counterparts, each of which will be an original and together
which will constitute one and the same instrument, provided however that each Party will receive a counterpart fully signed by the other Party. 

    IN WITNESS WHEREOF, the Parties hereto have executed this Distribution, Manufacturing, and License Agreement as of the date and year
first above written by persons duly authorized. 

	QUICKLOGIC	 	V3 SEMICONDUCTOR, CORP.
	

By:
	
 	

By:

	Name:
	 	Name:

	Title:
	 	Title:

	Date:
	 	Date:

	
V3 SEMICONDUCTOR, INC.	
 	

 
	

By:
	
 	

 
	Name:
	 	 
	Title:
	 	 
	Date:<Page>

                                                                    EXHIBIT 10.1

                                CARESCIENCE, INC.
                              AMENDED AND RESTATED
               1998 TIME ACCELERATED RESTRICTED STOCK OPTION PLAN
                         (Effective as of May 23, 2001)

      1.    PURPOSE OF THE PLAN.

      This stock option plan (the "Plan") is intended to encourage ownership of
the common stock of CareScience, Inc., a Pennsylvania corporation (the
"Company"), by employees of the Company and its subsidiaries, to induce
qualified personnel to enter and remain in the employ of the Company or its
subsidiaries and otherwise to provide additional incentive for optionees to
promote the success of its business.

      2.    STOCK SUBJECT TO THE PLAN.

            (a) The total number of shares of the authorized but unissued or
Treasury shares of the common stock, without par value, of the Company ("Common
Stock") for which options may be granted under the Plan shall not exceed 483,594
shares, subject to adjustment as provided in Section 12 hereof.

            (b) If an option granted or assumed hereunder shall expire or
terminate for any reason without having been exercised in full, the unpurchased
shares subject thereto shall again be available for subsequent option grants
under the Plan at the election of the Board of Directors of the Company (the
"Board of Directors").

            (c) Stock issuable upon exercise of an option granted under the Plan
shall be subject to such restrictions on transfer, repurchase rights or other
restrictions as shall be determined by the Board of Directors and set forth in
the Agreement (as defined in Section 6).

      3.    ADMINISTRATION OF THE PLAN.

            (a) The Plan shall be administered by the Board of Directors. No
member of the Board of Directors shall act upon any matter exclusively affecting
any option granted or to be granted to himself or herself under the Plan. A
majority of the members of the Board of Directors shall constitute a quorum, and
any action may be taken by a majority of those present and voting at any
meeting. The decision of the Board of Directors as to all questions of
interpretation and application of the Plan shall be final, binding and
conclusive on all persons. The Board of Directors may, in its sole discretion,
grant options to purchase shares of the Company's Common Stock and issue shares
upon exercise of such options as provided in the Plan. The Board of Directors
shall have authority, subject to the express provisions of the Plan, to construe
the respective option agreements and the Plan, to prescribe, amend and rescind
rules and regulations relating to the Plan, to determine the terms and
provisions of the respective option agreements, which may but need not be
identical, and to make all other determinations in the judgment of the Board of
Directors necessary or desirable for the administration of the Plan. The Board
of Directors may correct any defect or supply any omission or reconcile any

<Page>

inconsistency in the Plan or in any option agreement in the manner and to the
extent it shall deem expedient to carry the Plan into effect and shall be the
sole and final judge of such expediency. No director shall be liable for any
action or determination made in good faith.

            (b) The Board of Directors may, in its discretion, delegate its
powers, duties and responsibilities to a committee (the "Committee") consisting
of two or more directors, each of whom is a "non-employee director" (as defined
from time to time in Rule 16b-3 promulgated under the Securities Exchange Act of
1934, as amended the "Exchange Act")) and an "outside director" as defined under
Section 162(m) of the Internal Revenue Code of 1986, as amended (the "Code") and
related Treasury regulations. The Board of Directors may at any time and from
time to time appoint a member or members of the Committee in substitution for or
in addition to the member or members then in office and may fill vacancies on
the Committee however caused. The Committee shall choose one of its members as
Chairman and shall hold meetings at such times and places as it shall deem
advisable. A majority of the members of the Committee shall constitute a quorum
and any action may be taken by a majority of those present and voting at any
meeting. Any action may also be taken without the necessity of a meeting by a
written instrument signed by a majority of the Committee. If a Committee is so
appointed, all references to the Board of Directors herein shall mean and relate
to such Committee, unless the context otherwise requires.

            (c) With respect to the participation of any officer or director in
the Plan, his or her selection as an optionee and the number of option shares to
be allocated to such officer or director shall be determined either (i) by the
Board of Directors or (ii) by, or only in accordance with, the recommendations
of a Committee, as defined in Section 3(b) above. The provisions of this Section
3(c) shall not apply with respect to any option granted prior to the date of the
first registration of an equity security of the Company under Section 12 of the
Exchange Act.

      4.    TYPE OF OPTIONS.

            Options granted pursuant to the Plan shall be authorized by action
of the Board of Directors of the Company and shall be non-qualified options
which are not intended to meet the requirements of such Section 422 of the
Internal Revenue Code of 1986 (the "Code").

      5.    ELIGIBILITY.

            (a) Options may be granted to officers and senior management of the
Company or of any of its subsidiaries.

            (b) Directors who are not otherwise employees of the Company or a
subsidiary shall not be eligible to be granted an option pursuant to the Plan.

            (c) In determining the eligibility of an individual to be granted an
option, as well as in determining the number of shares to be optioned to any
individual, the Board of Directors shall take into account the position and
responsibilities of the individual being

                                       2
<Page>

considered, the nature and value to the Company or its subsidiaries of his or
her service and accomplishments, his or her present and potential contribution
to the success of the Company or its subsidiaries, and such other factors as the
Board of Directors may deem relevant.

      6.    OPTION AGREEMENT.

      Each option shall be evidenced by an option agreement (the "Agreement")
duly executed on behalf of the Company and by the optionee to whom such option
is granted, which Agreement shall comply with and be subject to the terms and
conditions of the Plan. The Agreement may contain such other terms, provisions
and conditions which are not inconsistent with the Plan as may be determined by
the Board of Directors. No option shall be granted within the meaning of the
Plan and no purported grant of any option shall be effective until the Agreement
shall have been duly executed on behalf of the Company and the optionee. More
than one option may be granted to an individual. The terms of any Agreement,
including the terms relating to the vesting of options covered thereby, may be
modified or amended from time to time with the consent of the Board of Directors
and the holder of such options. The Agreement may contain restrictions on
transfer of the shares issuable upon exercise thereof.

      7.    OPTION PRICE.

            (a) The option price of shares of the Company's Common Stock for
options granted hereunder shall be at least the fair market value of such Common
Stock on the date of such grant, and, prior to the registration of shares of
Common Stock under the Securities Act of 1933, as amended, in an initial public
offering by the Company, shall be equal to or greater than the price paid by
J.H. Whitney III, L.P. pursuant to its initial investment in the Company, as
described in the Stock Purchase Agreement, dated December 23, 1998, between the
Company, J.H. Whitney III, L.P., Whitney Strategic Partners III, L.P. and
certain Individual Investors (as defined therein).

            (b) If such shares are then listed on any national securities
exchange or on NASDAQ National Market System, the fair market value shall be the
mean between the high and low sales prices, if any, on the largest such exchange
on the date of the grant of the option or, if none, shall be determined by
taking a weighted average of the means between the highest and lowest sales
prices on the nearest date before and the nearest date after the date of grant
in accordance with Treasury Regulations Section 25.2512-2. If the shares are not
then listed on any such exchange, the fair market value of such shares shall be
the mean between the closing "Bid" and the closing "Ask" prices, if any, as
reported in the National Association of Securities Dealers Automated Quotation
System other than the National Market System ("NASDAQ") for the date of the
grant of the option, or, if none, shall be determined by taking a weighted
average of the means between the highest and lowest sales prices on the nearest
date before and the nearest date after the date of grant in accordance with
Treasury Regulations Section 25.2512-2. If the shares are not then either listed
on any such exchange or quoted in NASDAQ, the fair market value shall be the
mean between the average of the "Bid" and the average of the "Ask" prices, if
any, as reported in the National Daily Quotation Service for the date of the
grant of the option, or, if none, shall be determined by taking a weighted
average of the means between the highest and

                                       3
<Page>

lowest sales on the nearest date before and the nearest date after the date of
grant in accordance with Treasury Regulations Section 25.2512-2. If the fair
market value cannot be determined under the preceding three sentences, it shall
be determined in good faith by the Board of Directors.

      8.    MANNER OF PAYMENT; MANNER OF EXERCISE.

            (a) Options granted under the Plan may provide for the payment of
the exercise price by delivery of: (i) cash or a check payable to the order of
the Company in an amount equal to the exercise price of such options; (ii)
shares of Common Stock of the Company owned by the optionee having a fair market
value equal in amount to the exercise price of the options being exercised or
(iii) any combination of (i) and (ii); provided that payment of the exercise
price in whole or in part by delivery of shares of Common Stock of the Company
owned by such optionees may be made only with the consent of the Company. The
fair market value of any shares of the Company's Common Stock which may be
delivered upon exercise of an option shall be determined by the Board of
Directors in accordance with Section 7 hereof.

            (b) To the extent that the right to purchase shares under an option
has accrued and is in effect, options may be exercised in full at one time or in
part from time to time, by giving written notice, signed by the person or
persons exercising the option, to the Company, stating the number of shares with
respect to which the option is being exercised, accompanied by payment in full
for such shares as provided in subparagraph (a) above. Upon such exercise,
delivery of a certificate for paid-up non-assessable shares shall be made at the
principal office of the Company to the person or persons exercising the option
at such time, during ordinary business hours, within thirty (30) days from the
date of receipt of the notice by the Company, as shall be designated in such
notice, or at such time, place and manner as may be agreed upon by the Company
and the person or persons exercising the option.

      9.    EXERCISE OF OPTIONS.

            (a) Each option granted under the Plan shall, subject to Section 10
and Section 12 hereof, be exercisable on the seventh anniversary of the date of
grant thereof; provided, however, that the exercisability of such options may be
accelerated on such terms as may be set forth in the agreement evidencing such
options; provided, further, however, that no option granted under the Plan shall
have a term in excess of ten (10) years from the date of grant.

            (b) To the extent that an option to purchase shares is not exercised
by an optionee when it becomes initially exercisable, it shall not expire but
shall be carried forward and shall be exercisable, on a cumulative basis, until
the expiration of the exercise period.

      10.   TERM OF OPTIONS; EXERCISABILITY.

            (a) TERM.

                                       4
<Page>

                  (1) Each option shall expire not more than ten (10) years from
the date of the granting thereof, but shall be subject to earlier termination as
herein provided.

                  (2) Except as otherwise provided in this Section 10, or as may
be provided in an agreement evidencing options granted hereunder, an option
granted to any employee optionee who ceases to be an employee of the Company or
one of its subsidiaries shall terminate as of the close of business thirty (30)
calendar days after the date such optionee ceases to be an employee of the
Company or any of its subsidiaries, or on the date on which the option expires
by its terms, whichever occurs first.

                  (3) If such termination of employment is because the optionee
has become permanently disabled (within the meaning of Section 22(e)(3) of the
Code), such option shall terminate as of the close of business on the last day
of the sixth month from the date such optionee ceases to be an employee, or on
the date on which the option expires by its terms, whichever occurs first.

                  (4) In the event of the death of any optionee, any option
granted to such optionee shall terminate as of the close of business on the last
day of the twelfth month from the date of death, or on the date on which the
option expires by its terms, whichever occurs first.

            (b) EXERCISABILITY.

      An option that is subject to early termination due to Section 10(a)(2),
10(a)(3) or 10(a)(4) shall be exercisable only to the extent that the right to
purchase shares under such option has accrued and is in effect on the date of
termination.

            11.   OPTIONS NOT TRANSFERABLE.

            The right of any optionee to exercise any option granted to him or
her shall not be assignable or transferable by such optionee otherwise than by
will or the laws of descent and distribution, and any such option shall be
exercisable during the lifetime of such optionee only by him or, in the event of
the permanent disability of the optionee, by his personal representative or the
person who acquired the rights of the optionee with respect to the option as a
result of the optionee's disability. Any option granted under the Plan shall be
null and void and without effect upon the bankruptcy of the optionee to whom the
option is granted, or upon any attempted assignment or transfer, except as
herein provided, including without limitation any purported assignment, whether
voluntary or by operation of law, pledge, hypothecation or other disposition,
attachment, trustee process or similar process, whether legal or equitable, upon
such option.

            12.   RECAPITALIZATIONS, REORGANIZATIONS AND THE LIKE.

                  (a) In the event that the outstanding shares of the Common
Stock of the Company are changed into or exchanged for a different number or
kind of shares or other securities of the Company or of another corporation by
reason of any reorganization, merger,

                                       5
<Page>

consolidation, recapitalization, reclassification, sale of all or a part of the
Company's assets, stock split-up, combination of shares, or dividends payable in
capital stock, appropriate adjustment shall be made, as determined by the Board
of Directors, in the number and kind of shares as to which options may be
granted under the Plan to the end that the proportionate interest of the
optionee shall be maintained as before the occurrence of such event; such
adjustment in outstanding options shall be made without change in the total
price applicable to the unexercised portion of such options and with a
corresponding adjustment in the option price per share.

                  (b) Notwithstanding any other provision of the Plan, in the
event of a Change in Control (as defined below) any options granted under the
Plan outstanding as of the date on which such Change in Control occurs, and
which are not then exercisable and vested, shall become fully vested and
exercisable.

                  (c) Notwithstanding any other provision of the Plan, during
the 30-day period from and after a Change in Control (the "Exercise Period"),
unless otherwise set forth in the Agreement at the time of grant, each such
optionee shall have the right to elect by giving written notice to the Company
during the Exercise Period:

            (i) To exercise in full any installments of any outstanding options
      granted under the Plan held by such optionee not previously exercised; or

            (ii) To surrender all or part of any outstanding options granted
      under the Plan held by such optionee, in exchange for a cash payment by
      the Company (or its successor in interest) in an amount equal to the
      excess over the purchase price of the Change in Control Price (as defined
      below) of the shares of Common Stock subject to the optionee's outstanding
      options granted under the Plan.

                  (d) As used herein, "Change of Control" means the following:

            (i) the sale, lease, transfer, conveyance or other disposition
      (other than by merger or consolidation), in one or a series of related
      transactions, of all or substantially all of the assets of the Company and
      its subsidiaries taken as a whole;

            (ii) the adoption of a plan relating to the liquidation or
      dissolution of the Company;

            (iii) the consummation of any transaction (including without
      limitation, any merger or consolidation) the result of which is that any
      "person" (as such term is used in Section 13(d)(3) of the Exchange Act),
      other than David J. Brailer becomes the "beneficial owner" (as such term
      is defined in Rule 13d-3 and Rule 13d-5 under the Exchange Act), directly
      or indirectly, of more than 50% of the voting stock of the Company (as
      measured by voting power rather than the number of shares);

            (iv) the first day on which a majority of the members of the Board
      of Directors

                                       6
<Page>

of the Company are not Continuing Directors (as defined below); or

            (v) the Company consolidates with, or merges with or into, any
      person, or any person consolidates with, or merges with or into, the
      Company, other than any such transaction where the shareholders of the
      Company immediately prior to such transaction, own, immediately after
      giving effect to such transaction, a majority of the combined voting power
      of the corporation or other entity surviving such transaction.

                  (e) As used herein, "Change in Control Price" means the higher
of:

            (i) the highest reported sales price of a share of Common Stock in
      any transaction reported on an exchange or NASDAQ, or paid in any private
      transaction during the 60-day period prior to and including the date of a
      Change in Control; and

            (ii) if the Change in Control is the result of a tender or exchange
      offer, the highest price per share of Common Stock paid in such tender or
      exchange offer.

                  (f) As used herein, "Continuing Directors" means, as of the
date of determination, any member of the Board of Directors who: (a) was a
member of the Board of Directors on the date hereof or (b) was nominated for
election or elected to the Board of Directors with the approval of a majority of
the Continuing Directors.

                  (g) No fraction of a share shall be purchasable or deliverable
upon the exercise of any option, but in the event any adjustment hereunder of
the number of shares covered by the option shall cause such number to include a
fraction of a share, such fraction shall be adjusted to the nearest smaller
whole number of shares.

            13.   NO SPECIAL EMPLOYMENT RIGHTS.

            Nothing contained in the Plan or in any option granted under the
Plan shall confer upon any option holder any right with respect to the
continuation of his or her employment by the Company (or any subsidiary) or
interfere in any way with the right of the Company (or any subsidiary), subject
to the terms of any separate employment agreement to the contrary, at any time
to terminate such employment or to increase or decrease the compensation of the
option holder from the rate in existence at the time of the grant of an option.
Whether an authorized leave of absence, or absence in military or government
service, shall constitute termination of employment shall be determined by the
Board of Directors at the time.

            14.   WITHHOLDING.

            The Company's obligation to deliver shares upon the exercise of any
option granted under the Plan shall be subject to the option holder's
satisfaction of all applicable Federal, state and local income, excise
employment and any other tax withholding requirements.

            15.   RESTRICTIONS ON ISSUE OF SHARES.

                                       7
<Page>

                  (a) Notwithstanding the provisions of Section 8, the Company
may delay the issuance of shares covered by the exercise of an option and the
delivery of a certificate for such shares until one of the following conditions
shall be satisfied:

                        (i) The shares with respect to which such option has
been exercised are at the time of the issue of such shares effectively
registered or qualified under applicable Federal and state securities acts now
in force or as hereafter amended; or

                        (ii) Counsel for the Company shall have given an
opinion, which opinion shall not be unreasonably conditioned or withheld, that
such shares are exempt from registration and qualification under applicable
Federal and state securities acts now in force or as hereafter amended.

                  (b) It is intended that all exercises of options shall be
effective, and the Company shall use its best efforts to bring about compliance
with the above conditions within a reasonable time, except that the Company
shall be under no obligation to qualify shares or to cause a registration
statement or a post-effective amendment to any registration statement to be
prepared for the purpose of covering the issue of shares in respect of which any
option may be exercised, except as otherwise agreed to by the Company in
writing.

      16.   PURCHASE FOR INVESTMENT: RIGHTS OF HOLDER ON
            SUBSEQUENT REGISTRATION.

            Unless the shares to be issued upon exercise of an option granted
under the Plan have been effectively registered under the Securities Act of
1933, as now in force or hereafter amended, the Company shall be under no
obligation to issue any shares covered by any option unless the person who
exercises such option, in whole or in part, shall give a written representation
and undertaking to the Company which is satisfactory in form and scope to
counsel for the Company and upon which, in the opinion of such counsel, the
Company may reasonably rely, that he or she is acquiring the shares issued
pursuant to such exercise of the option for his or her own account as an
investment and not with a view to, or for sale in connection with, the
distribution of any such shares, and that he or she will make no transfer of the
same except in compliance with any rules and regulations in force at the time of
such transfer under the Securities Act of 1933, or any other applicable law, and
that if shares are issued without such registration, a legend to this effect may
be endorsed upon the securities so issued. In the event that the Company shall,
nevertheless, deem it necessary or desirable to register under the Securities
Act of 1933 or other applicable statutes any shares with respect to which an
option shall have been exercised, or to qualify any such shares for exemption
from the Securities Act of 1933 or other applicable statutes, then the Company
may take such action and may require from each optionee such information in
writing for use in any registration statement, supplementary registration
statement, prospectus, preliminary prospectus or offering circular as is
reasonably necessary for such purpose and may require reasonable indemnity to
the Company and its officers and directors from such holder against all losses,
claims, damages and liabilities arising from such use of the information so
furnished and caused by any untrue statement of any material

                                       8
<Page>

fact therein or caused by the omission to state a material fact required to be
stated therein or necessary to make the statements therein not misleading in the
light of the circumstances under which they were made.

      17.   LOANS.

      The Company may make loans to optionees to permit them to exercise
options, if loans are made, the requirements of all applicable Federal and state
laws and regulations regarding such loans must be met.

      18.   MODIFICATION OF OUTSTANDING OPTIONS.

      The Board of Directors may authorize the amendment of any outstanding
option with the consent of the optionee when and subject to such conditions as
are deemed to be in the best interests of the Company and in accordance with the
purposes of the Plan.

      19.   APPROVAL OF STOCKHOLDERS

      The Plan shall be subject to approval by the vote of stockholders holding
at least a majority of the voting stock of the Company present, or represented,
and entitled to vote at a duly held stockholders' meeting, or by written consent
of all of the stockholders, within twelve (12) months after the adoption of the
Plan by the Board of Directors and shall take effect as of the date of adoption
by the Board upon such approval. The Board of Directors may grant options under
the Plan prior to such approval, but any such option shall become effective as
of the date of grant only upon such approval and, accordingly, no such option
may be exercisable prior to such approval.

      20.   TERMINATION AND AMENDMENT OF PLAN.

      Unless sooner terminated as herein provided, the Plan shall terminate ten
(10) years from the date upon which the Plan was duly authorized by the Board of
Director's of the Company. The Board of Directors may at any time terminate the
Plan or make such modification or amendment thereof as it deems advisable;
provided, however, that except as provided in Section 19, the Board of Directors
may not, without the approval of the stockholders of the Company obtained in the
manner stated in Section 19, increase the maximum number of shares for which
options may be granted or change the designation of the class of persons
eligible to receive options under the Plan or make any other change in the Plan
which requires stockholder approval under applicable law or regulations.
Termination or any modification or amendment of the Plan shall not, without the
consent of an optionee, affect his or her rights under an option theretofore
granted to him or her.

      21.   RESERVATION OF STOCK.

      The Company shall at all times during the term of the Plan reserve and
keep available such number of shares of stock as will be sufficient to satisfy
the requirements of the

                                       9
<Page>

Plan and shall pay all fees and expenses necessarily incurred by the Company in
connection therewith.

      22.   LIMITATION OF RIGHTS IN OPTION SHARES.

      An optionee shall not be deemed for any purpose to be a stockholder of the
Company with respect to any of the options except to the extent that the option
shall have been exercised with respect thereto and, in addition, a certificate
shall have been issued theretofore and delivered to the optionee.

      23.   NOTICES.

      Any communication or notice required or permitted to be given under the
Plan shall be in writing, and mailed by registered or certified mail or
delivered by hand, if to the Company, to its principal place of business,
attention: President, and, if to an optionee, to the address as appearing on the
records of the Company.

                                       10

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00028-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00028-of-00352.parquet"}]]