Document:

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                                                                   EXHIBIT 10.10

                                SUPPLY AGREEMENT

        This Agreement (the "Agreement") is entered into this 7th day of
October, 1999 by and between Spectrian, Inc., Semiconductor Division, having its
office at 350 West Java Drive, Sunnyvale, California, 94089, hereinafter
referred to as "SPECTRIAN"

        and

        Stanford Microdevices Inc., having its office at 522 Almanor Avenue,
Sunnyvale, CA 94086, USA, hereinafter referred to as "SMI".

        SPECTRIAN desires to sell, and SMI desires to buy, semiconductor wafers,
transistors, and capacitors to be manufactured by SPECTRIAN using proprietary
designs, pursuant to the terms and conditions of this Agreement.

        NOW, THEREFORE in consideration of these premises, and the mutual
promises and conditions in this Agreement, the parties agree as follows.

        1. Scope of Agreement.

               1.1 Subject to the terms and conditions contained in Section 14
of this Agreement, SMI and SPECTRIAN hereby will disclose Know-how as defined
below and Confidential information, as defined in Section 14 to have wafers,
transistors and capacitors made at SPECTRIAN's fabrication facility in
Sunnyvale, California, in accordance with the Wafer, Transistor, and Capacitor
Specifications set forth in Exhibit A, and to test such wafers, transistors and
capacitors, and to sell such wafers, transistors, and capacitors to SMI at the
prices established in Exhibit B.

                      "Know-how", when used in this Agreement, shall mean all of
SPECTRIAN designs, techniques, technology, trade secrets, proprietary
information and other confidential information disclosed by SPECTRIAN to SMI
pursuant to this Agreement, which SPECTRIAN and SMI jointly agree is necessary
for SPECTRIAN to produce wafers, transistors, and capacitors under this
Agreement.

               1.2 [***]

               1.3 [***]

               1.4 SPECTRIAN and SMI mutually agree that from time to time and
upon the agreement of the parties, additional new products may be added to the
Agreement.

[***] Certain information on this page has been omitted and filed separately
      with the Commission. Confidential treatment has been requested with
      respect to the omitted portions.
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               1.5 [***]

        2. License.

               2.1 SPECTRIAN hereby grants SMI and its wholly owned subsidiaries
a worldwide non-exclusive and non-transferable marketing license to sell certain
finished discrete LDMOS transistor devices and dies identified by product
specifications attached to this Agreement, which shall be marketed under the SMI
label.

               2.2 SPECTRIAN hereby grants SMI and its wholly owned subsidiaries
a worldwide, royalty-free, non-exclusive and non-transferable license to the
technology and Know-how necessary to assemble and test stand alone transistor
devices manufactured with wafers procured under this Agreement. No license shall
be granted to SMI with respect to the wafer fabrication process technology,
rather, SPECTRIAN will supply to SMI for assembly semiconductor dies on which
SPECTRIAN has fabricated the applicable transistor device. SPECTRIAN shall make
available to SMI LDMOS dies manufactured using processes and structures
developed by SPECTRIAN after the effective date of this Agreement in SPECTRIAN's
fab for power amplifier devices. In addition, SPECTRIAN shall provide SMI access
to all related LDMOS assembly and test technologies developed by SPECTRIAN and
deemed necessary by SMI to develop new transistor designs. Spectrian hereby
grants SMI and its wholly owned subsidiaries a non-exclusive and
non-transferable, royalty, worldwide free license to the intellectual property
listed in Exhibit E of the Agreement required for the assembly and test of
transistors using SPECTRIAN dice. The parties shall mutually agree on the
contents of Exhibit E, which will be defined by December 31, 1999; provided
that, should SMI use the intellectual property defined in Exhibit E with other
foundries' dice, then a future royalty agreement may be negotiated between
SPECTRIAN and SMI.

        3. Payment.

               3.1 SMI shall pay in United States Dollars for wafers supplied by
SPECTRIAN to SMI hereunder within [***] days after SMI receipt of an invoice
from SPECTRIAN which shall be submitted to SMI upon shipment.

        4. Orders, Warranty and Claims.

               4.1 SPECTRIAN shall supply wafers, transistors, and parts to SMI
in accordance with written purchase orders to be provided by SMI. Each purchase
order shall include the following:

                      (a) purchase order number;

                      (b) product name;

                      (c) manufacturing process;

[***] Certain information on this page has been omitted and filed separately
      with the Commission. Confidential treatment has been requested with
      respect to the omitted portions.

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                      (d) quantities;

                      (e) unit wafer, transistor, and/or parts prices and total
prices;

                      (f) desired shipment date (subject to Section 6 "DELIVERY
TIMES" below);

                      (g) delivery instructions; and

                      (h) any special requests or comments.

        Subject orders shall become effective only upon the written acceptance
thereof by SPECTRIAN within 5 working days.

        The terms of this Agreement shall prevail over any conflicting terms in
any order documents, invoices or similar documents exchanged between the parties
hereunder.

               4.2 SMI shall place an annual purchase order with SPECTRIAN for
the finished transistor devices shown in Exhibit A to be sold to the merchant
market and for wafers to be utilized in manufacturing transistors for sale to
the merchant market. SMI and SPECTRIAN shall hold annual pricing negotiations
for the products shown in Exhibit A or more frequently as required to meet
specific demands of the merchant market.

               4.3 SMI shall provide SPECTRIAN every month with a good faith
four (4) month rolling forecast of its wafer, transistors, and parts
requirements on a monthly basis, and SPECTRIAN shall use its best efforts to
make available to SMI sufficient fabrication, assembly and test capacity to meet
such forecast requirements. In addition to the status reports established under
Section 7 below, the parties shall provide one another with reasonable notice
about changes in desired shipping or production schedules, availability of
capacity or other similar situations. The forecast is considered as a firm order
for a period of thirty (30) days; changeable by [***] in the 31-59 day period,
and changeable as much as required in the period of 60 days or greater.

                      a. Any other provision of this Agreement notwithstanding,
if SPECTRIAN shall be delayed more than sixty (60) days in the production and
delivery of wafers, transistors or parts for any particular SMI purchase order,
regardless of cause, SMI may, at its reasonable discretion, provided that
SPECTRIAN is unable to provide a recovery program acceptable to SMI, cancel such
order effective upon written notice thereof to SPECTRIAN. Upon resubmission of
any such cancelled order by SMI and acceptance thereof by SPECTRIAN, SPECTRIAN
shall then use its best efforts to give a priority delivery date to such new
order. If SPECTRIAN delays production and delivery more than sixty (60) days
under three (3) or more SMI purchase orders in any six (6) months' period under
this Agreement, SMI may terminate this Agreement immediately by sending notice
of termination to SPECTRIAN.

                      b. SPECTRIAN gives warranty on workmanship and material
for [***] months. In case of warranty claims by SMI, SPECTRIAN's warranty is
limited to the replacement of wafers, transistors, and/or parts.

[***] Certain information on this page has been omitted and filed separately
      with the Commission. Confidential treatment has been requested with
      respect to the omitted portions.

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        5. Product Support.

               5.1 SPECTRIAN agrees to provide technical assistance and other
support to SMI as reasonably required. SPECTRIAN agrees to provide the
information necessary for SMI to generate technical sales data and marketing
collateral for the devices shown in Exhibit A. SMI shall be responsible for the
production of all sales literature and collateral.

        6. Delivery Times.

               6.1 Unless otherwise agreed to in writing by SMI, delivery times
upon acceptance of a SMI purchase order by SPECTRIAN shall be:

                      a) WAFERS - twelve (12) weeks for production wafers for
quantities up to 100 wafers, with the target to go down to eight (8) weeks in
2000; delivery times for quantities beyond 100 wafers are to be mutually agreed
upon.

                      b) TRANSISTORS - In accordance with the acknowledged
purchase orders.

                      c) CAPACITORS - In accordance with the acknowledged
purchase orders.

        SPECTRIAN shall use its best efforts to achieve all delivery times on a
regular and consistent basis.

               6.2 In the event of a third party suit or claim against SMI
and/or SPECTRIAN involving a Third Party Right (as defined in Section 16),
SPECTRIAN may, at its reasonable discretion and upon advice of its legal
counsel, suspend or terminate the production and supply of any wafers and
transistors to SMI if such continued production and supply would or could cause
SPECTRIAN to violate such Third Party Right. SPECTRIAN shall discuss any such
suspension or termination with SMI and shall give due opportunity for SMI to
satisfy the provisions of Section 16, prior to the implementation thereof. In
case SPECTRIAN interrupts production due to circumstances described hereinabove,
it shall provide reasonable assistance to SMI in order to re-establish
deliveries of wafers and transistors, if appropriate, by subcontracting to
another foundry.

        7. Status Reports.

               7.1 Upon request from SMI, SPECTRIAN shall provide SMI with
work-in-process information, in SMI content and format, status reports, with
projection of waferout and transistor completion dates.

               7.2 Any deviations from acknowledged delivery dates due to
unforeseen manufacturing problems shall be reported to SMI within 3 working days
when such problems become apparent.

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        8. Process Changes.

               8.1 Either party may request the other party to accept changes in
the production process for wafers, provided, however, any material changes to
the production process for wafers that has been previously approved by SMI for
production of its wafers, including changes to procedures, flow or
specifications, may only be made if such changes are first approved in writing
by SMI, which approval shall not be unreasonably withheld.

               8.2 Changes requiring written approval are major changes as
described in Exhibit C.

        9. Ownership and Responsibility.

               a. SPECTRIAN and SMI acknowledge that each party will own its
pre-existing technology, and any technology solely created by it. SPECTRIAN will
own any and all intellectual property developed solely by SPECTRIAN related to
semiconductor manufacturing, the die, packaging or internal matching of devices
covered by this agreement. Except as set forth above, all know-how and
inventions relating to the design of devices, device assembly, or internal
matching of devices jointly invented by the parties in the course of product
development efforts will be jointly owned and each party shall retain the right
to use and license such technology.

        10. Discontinuation of Production.

               a. SPECTRIAN agrees, upon notification to SMI that SPECTRIAN will
render obsolete or make a major fab process change, close the wafer fab, or
change ownership, to make available for purchase at the option of SMI that
quantity of wafers equal to SMI's past purchases or reasonably anticipated
future purchases under this Agreement, as the case may be, over a five (5) year
period of time. SPECTRIAN will provide notification at least 12 months in
advance of time of obsolescence or major process change. Delivery of wafers
ordered under this provision will be at a mutually agreeable rate but shall in
no case extend over a period greater than 12 months.

        11. Spectrian Quality Inspection.

               11.1 SPECTRIAN shall ship only such wafers, transistors or parts
as have passed visual inspection and electrical testing by SPECTRIAN, in
accordance with the latest approved revisions in effect of the specifications
set forth in Exhibit A.

               11.2 SPECTRIAN shall process all wafers and dies delivered to SMI
in accordance with the latest approved revision level of SPECTRIAN Specification
040160, "LDMOS Wafer Evaluation and Die Preparation Process," and the applicable
LDMOS Die Specifications (510XXX) except as modified by Section 11.3 of the
Agreement.

               11.3 SPECTRIAN will perform DC testing only on wafer and die
delivered to SMI in accordance with the requirements of 040160 and the
applicable 510XXX documents. SMI will perform all RF device evaluation assembly
and test for wafer qualification. All references to device builds for evaluation
sample testing, and qualification noted in 040160 and 510XXX documents are not
applicable to SPECTRIAN.

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               SPECTRIAN warranties that [***] of the die from each wafer
delivered to SMI, when packaged into finished devices, will yield transistors
that comply with the applicable [***] transistor document. In the event a wafer
does not comply with this requirement, SMI will advise SPECTRIAN immediately,
but in no case later than [***] business days after receipt thereof by SMI, that
a wafer(s) has failed to comply with the performance and yield requirements of
paragraph 11.3. An engineering review meeting will be convened, attended by the
engineering representatives of both companies to review wafer data, and set a
corrective action plan for any failed wafers. After discussions regarding the
failed wafers have been completed, SMI, at its option and with advanced
notification to SPECTRIAN, shall return the wafer(s) for credit or replacement
or another agreed upon solution.

               11.4 SMI and/or its appointed customers shall be entitled upon
any reasonably written request and during normal business hours, and at its sole
expense, to witness inspection and testing of all wafers manufactured by
SPECTRIAN for SMI under this Agreement and to audit the SPECTRIAN quality
control system to monitor the quality of wafers manufactured. If corrective
actions require follow-up, additional, directly related audits are permitted,
SMI personnel, in conducting such inspections or audits, shall be bound by
SPECTRIAN rules at its plants respecting visits by outside personnel.

               11.5 SPECTRIAN shall keep, and provide reasonable access to SMI,
all SPECTRIAN test, inspection, processing, and full tracing of all wafers, from
fabrication to shipment, including scraps, normally maintained for a wafer lot
for each lot of wafers processed, on the same terms as it handles its standard
production records for other customers. SPECTRIAN shall not destroy records
pertaining to the wafers within 18 months of their creation and without first
giving SMI thirty (30) days written notice of such intended destruction and, the
right to obtain copies of such records for SMI own files and at SMI own expense.

               11.6 Should SPECTRIAN discover or be informed about a condition
that may affect the quality or reliability of wafers in process or shipped to
SMI, SPECTRIAN will inform SMI immediately and present to SMI all pertinent
data.

        12. Inspection.

               12.1 SMI shall conduct its own inspection of shipped wafers,
transistors or parts in accordance with the Exhibit A wafer, transistor and
capacitor specifications within thirty (30) business days after receipt thereof
by SMI. If any wafers, transistors or capacitors shipped by SPECTRIAN do not
meet specifications upon such inspection, SMI shall immediately notify SPECTRIAN
in writing of the rejection of such shipment, and the specific defect or
deficiency identified by the inspection. SMI shall hold such materials in a safe
and secure facility and make them available for inspection by SPECTRIAN, subject
to Section 12.5.

               12.2 If appropriate, SPECTRIAN may direct SMI to return such
defective materials to SPECTRIAN for further inspection, testing or other
procedures. Any such direction shall be accomplished by an SPECTRIAN Return
Material Authorization ("RMA"), including a specific tracer number to be
prominently displayed on the shipping container for such returned materials.
Upon issuance of an RMA, SMI shall promptly ship such materials together with
all

[***] Certain information on this page has been omitted and filed separately
      with the Commission. Confidential treatment has been requested with
      respect to the omitted portions.

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relevant data from the SMI inspection to the designated SPECTRIAN facility,
freight and insurance prepaid, in the original shipping container or containers
of equivalent protective constitution.

               12.3 SMI may return such wafers, transistors or parts hereunder
for a credit and may recover its return shipping and insurance expenses from
SPECTRIAN if, and only if, defects in such materials actually exist as indicated
in the SMI rejection notice and were not caused by SMI own misuse, unauthorized
modifications, neglect, improper testing, attempts to repair, or by accident,
fire or other hazard, while such materials were in the possession or control of
SMI.

               12.4 SPECTRIAN and SMI acknowledge that some wafers or parts
which do not meet Wafer Specifications and/or are broken may nevertheless still
be expected to yield a functional and reliable product. If SMI elects to
purchase such below-specification wafers or parts, SMI shall be entitled to a
partial credit against the SPECTRIAN invoice in an amount as may be reasonably
agreed upon in writing by SMI and SPECTRIAN. If SMI and SPECTRIAN fail to agree
upon a partial credit amount, then the below-specification wafers or parts shall
be returned to SPECTRIAN at SPECTRIAN's expense.

               12.5 SMI and SPECTRIAN agree that conformance to the
specifications within this document does not necessarily indicate the wafers are
free of defects in material and/or workmanship, and that subsequent processing
or testing may uncover such defects in material and/or workmanship. Warranty
claims of such nature shall be made by SMI no later than 30 working days after
the first indication of a potential problem to SMI, and SMI and SPECTRIAN agree
to use their best efforts to correct such defects and provide each other with a
reasonable amount of data or information to effect a cure.

               12.6 Any other provision of this Section 12 to the contrary
notwithstanding, no claim by SMI with respect to wafers, parts or services
delivered to SMI under this Agreement shall be greater in amount than the
purchase price of the order in respect of which damages are claimed. IN NO EVENT
SHALL SPECTRIAN BE LIABLE FOR ANY CONSEQUENTIAL, INCIDENTAL, INDIRECT OR SPECIAL
DAMAGES, HOWEVER CAUSED, WITH REGARD TO ANY WAFERS, PARTS OR SERVICES DELIVERED
HEREUNDER. REGARDLESS OF WHETHER SPECTRIAN HAS BEEN INFORMED OF THE POSSIBILITY
OF SUCH DAMAGES OR NOT.

        13. Delivery Quantities.

               13.1 Delivery quantities will match with ordered quantities as
closely as possible; [***]

[***] Certain information on this page has been omitted and filed separately
      with the Commission. Confidential treatment has been requested with
      respect to the omitted portions.

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        14. Confidentiality.

               14.1 Each party acknowledges that the information disclosed in
connection with any transactions contemplated hereunder will contain the
Confidential Information and trade secrets of the disclosing party, and will
remain the property of the disclosing party ("Confidential Information"). A
party receiving any Confidential Information of the other party shall take all
reasonable measures to keep and hold any such Confidential Information of the
other party in strict confidence as it would its own Confidential Information
and shall not disclose such Confidential Information of the other party to any
person, firm or corporation without the prior written consent of the other
party. A party receiving Confidential Information of the other party shall not,
except as may be authorized hereafter in writing by the disclosing party, use
any Confidential Information of the other party for any purpose not stated in
this Agreement.

               14.2 A party receiving Confidential Information of the other
party shall limit dissemination of and access to any Confidential Information of
the other party to those employees or consultants of the receiving party who
have a good faith need for such access to effectuate the purpose of this
Agreement and who have executed a standard non-disclosure agreement with the
receiving party.

               14.3 The obligations of the receiving party described in this
Section shall survive termination or expiration of this Agreement and shall
continue in full force and effect with respect to any information as long as it
remains Confidential Information under this Section 14.

               14.4 A party receiving Confidential Information of the other
party may disclose such information to subcontractors upon the prior written
approval of the party disclosing the Confidential Information if such disclosure
is necessary to perform the receiving party's duties under this Agreement, and
such approval shall not be unreasonably withheld. The receiving party shall
cause its permitted subcontractors to sign a confidentiality agreement with
substantially the same terms and conditions of this Section prior to disclosing
Confidential Information of the other party to such subcontractors.

               14.5 Neither party shall have a Confidential Information
obligation to the other party with respect to any information of the other party
or any portion thereof which is:

                      (a) already known to the receiving party at the time of
receiving same as shown by the receiving party's files and records in existence
at the time of disclosure;

                      (b) or hereafter becomes publicly known through no
wrongful act of the receiving party;

                      (c) rightfully received from a third party without
restriction on disclosure and without breach of this Agreement;

                      (d) now or hereafter independently developed by the
receiving party and without reliance in any degree upon any Confidential
Information of the other party;

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                      (e) furnished by the disclosing party to a third party
without any restriction upon disclosure comparable to that set forth in this
Agreement; or

                      (f) revealed pursuant to a requirement of a governmental
agency or law, provided that the receiving party provides prompt written notice
of such requirement or law so as to afford the disclosing party an opportunity
to intervene and oppose disclosure.

               14.6 The parties agree that any material breach of Section 14
will cause irreparable injury and that injunctive relief in a court of competent
jurisdiction will be appropriate to prevent either an initial or continuing
breach of such nondisclosure and confidentiality provisions herein in addition
to any other relief to which the owner of such Confidential Information may be
entitled.

        15. Term.

               15.1 This Agreement may be terminated by SMI or SPECTRIAN upon
written notice to the other party:

                      (a) in the event the other party files a petition in
bankruptcy, or in the event all or part of the other party's assets are assigned
to a trustee or receiver, or if an involuntary petition in bankruptcy is filed
by a third party and the other party does not resolve such petition in its favor
within sixty (60) days after filing and notice thereof;

                      (b) in the event of a substantial breach of a material
term of this Agreement not remedied by the other party in breach within thirty
(30) days after receipt of written notice by the terminating party specifying
such breach and requesting that it be remedied; and

                      (c) immediately for any violations of Section 14.

               a. IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR ANY LOST PROFITS
OR ANY CONSEQUENTIAL, INCIDENTAL, INDIRECT, OR SPECIAL DAMAGES, HOWEVER CAUSED,
AND ON ANY THEORY OF LIABILITY, ARISING OUT OF THE TERMINATION OF THIS
AGREEMENT.

               b. SPECTRIAN shall not be liable for any damages whatsoever
caused by SMI products, due to design, packaging and testing.

               15.4 This agreement shall be in effect for [***] and shall be
self renewing on the anniversary of this Agreement thereafter unless terminated
by either party at least [***] prior to such renewal. Should SPECTRIAN decide to
not renew this agreement the discontinuation of product clause (Section 10.0)
becomes effective.

        16. Infringement.

               16.1 SPECTRIAN warrants to SMI that SPECTRIAN owns the know-how,
copyrights, mask work rights, and other intellectual rights solely to enable
SPECTRIAN to produce the wafers, transistors or parts for SMI lawfully.
SPECTRIAN hereby indemnifies and holds SMI and its directors, officers,
employees and agents harmless from any claim, suit or other liability

[***] Certain information on this page has been omitted and filed separately
      with the Commission. Confidential treatment has been requested with
      respect to the omitted portions.

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(including reasonable attorneys' fees and costs) arising out of or resulting
from a material breach of the foregoing warranty.

               16.2 SMI warrants to SPECTRIAN that SMI owns, or otherwise has
the right to use on behalf of SPECTRIAN all applicable intellectual property
rights to the manufacturing processes not otherwise licensed to SMI by SPECTRIAN
which will be used by SPECTRIAN to produce the wafers or parts. SMI hereby
indemnifies and holds SPECTRIAN and its directors, officers, employees and
agents harmless from any claim, suit or other liability (including reasonable
attorneys' fees and costs) arising out of or resulting from a material breach of
the foregoing warranty.

               16.3 In the event of the institution of any suit or claim against
an indemnified party alleging that SPECTRIAN's manufacture of the wafers or
parts violates any circuit design patent or mask work, manufacturing process
patent, or other circuit design or manufacturing process proprietary right of a
third party recognized under the laws of the United States of America
(hereinafter "Third Party Rights"), or shall become the subject of any claim for
violation of Third Party Rights, the indemnified party shall promptly notify the
indemnifying party of such suit or claim and provide reasonable details thereof.
Failure to give such notice, if it materially impairs the ability of the
indemnifying party to defend against such suit or claim, shall terminate any
duty of indemnification under this Section.

               16.4 The indemnifying party shall have sole control of any action
or settlement negotiations relating to any such suit or claim, and the
indemnified party shall render all cooperation reasonably requested by the
indemnifying party in defense of such suit or claim, provided that the
indemnified party may retain its own counsel at its own expense. The indemnified
party shall not settle or attempt to settle any such suit or claim without the
express written consent of the indemnifying party.

               16.5 In addition to its duty of indemnification hereunder, the
indemnifying party may, at its sole discretion and expense:

                      (a) alter or change the circuit design or manufacturing
process, as may be the case, so as to make said design or process non-infringing
of any Third Party Right; or

                      (b) obtain permission from the affected third party to use
the Third Party right, it being the intention of both parties to continue the
performance of this Agreement if commercially reasonable to do so.

                      If neither of these methods is appropriate to eliminate
the infringement of the Third Party Right, the indemnifying party at its sole
discretion may terminate this Agreement or withdraw the infringing products
without any additional obligation or liability to the indemnified party, for
lost opportunity or profits or otherwise, due to such termination.

        17. Notices.

               17.1 Any and all notices or other communications required or
permitted by this Agreement or by law to be served on or given to either party
hereto by the other party shall be in writing and shall be deemed duly served
and given when personally delivered to either of the parties

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to whom it is directed, or in lieu of such personal service, on the same day of
transmission by confirmed facsimile or seven (7) days after deposit in the mail,
first class international air mail postage prepaid, or two (2) business days
after being sent by overseas courier, addressed to:

            SMI Microdevices Inc.               SPECTRIAN, CORPORATION.
            522 Almanor Avenue                  Semiconductor Division
            Sunnyvale, CA 94086                 350 West Java Drive
            Attn. of: Gerald L. Quinnell        Sunnyvale, CA 94089
                                                Attn. of:  Chris Tubis

                      Either party may change the addresses above upon notice
duly given in writing to the other party.

        18. Arbitration.

               18.1 Except for any claim based upon an alleged or actual
violation of Section 14 above with respect to confidentiality and
non-disclosure, any dispute relating to the interpretation or performance of
this Agreement or the grounds for the termination thereof shall be resolved at
the request of either party through arbitration as set forth herein. Such
arbitration shall be conducted by one (1) arbitrator who has reasonable
technical knowledge of and experience in the semiconductor industry, chosen and
agreed upon by the parties.

               18.2 Arbitration shall be conducted in Sunnyvale, California,
USA, under the Commercial Arbitration Rules of the American Arbitration
Association (the "AAA"), except as superseded by the provisions of this Section,
or such other rules as may be agreed upon by the parties. The parties shall be
entitled to all discovery permitted under Section 1283.05 of the California Code
of Civil Procedure, with all such discovery to be completed within ninety (90)
days of the commencement of the arbitration. Upon completion of the arbitration
hearing, the arbitrator shall promptly render the decision and award, which
shall be in writing and which shall state the reasons for the conclusions
reached.

               18.3 The arbitrator shall have the power to render any award for
ordinary damages or injunctive relief but may not award punitive damages. If
judicial enforcement or review of such arbitration award is sought by either
party, judgement may be entered upon such award in any court of competent
jurisdiction in the United States.

               18.4 The prevailing party in any such judicial enforcement,
arbitration or review proceeding or in any other legal proceeding relating to
the interpretation or performance of this Agreement or the grounds for
termination thereof shall be entitled to its reasonable attorneys' fees and
related other costs (including the costs for the arbitrator and the fees of any
interpreters or translators) in addition to any other amount of recovery ordered
by such court. For purposes of this Section, a "prevailing party" shall be that
party which recovers more than one-half (1/2) of the amount set forth in its
claim in the arbitration or which defeats the other party's claim by more than
one-half, or which achieves a comparable result in respect of injunctive relief.

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        19. Miscellaneous.

               19.1 This document constitutes the entire agreement of SMI and
SPECTRIAN with regard to the subject matter hereof and supersedes all prior
negotiations and agreements whether written or oral. The executed version of
this Agreement and of any other documents prepared by the parties under this
Agreement shall be controlling for all purposes.

               19.2 This Agreement may be amended only by a written document
executed by authorized representatives of SMI and SPECTRIAN.

               19.3 No right may be assigned, and no duty may be delegated, by
either party under this Agreement except upon the written consent of the other
party, and any attempted assignment and delegation without such consent shall be
void.

               19.4 Notwithstanding the foregoing, however, either party shall
be entitled to assign this Agreement, and all rights and obligations hereunder,
to a wholly-owned subsidiary or to a successor to all or substantially all of
its assets, whether by sale, merger, or otherwise, provided that either party
indicating such assignment shall provide the other party with at least thirty
(30) days prior written notice and cause such assignee to be bound by this
Agreement. In the event of a major change of ownership, either party shall have
the right to terminate the Agreement with at least 60 days prior written notice.
This agreement shall be binding upon and shall inure to the benefit of the
parties hereto and their respective representatives, heirs, administrators,
successors and permitted assigns except as otherwise provided herein.

               19.5 The headings contained in this Agreement are for reference
purposes only and shall not affect in any way the meaning or interpretation of
this Agreement.

               19.6 Except for the duty of payment for goods and services
previously supplied, neither party shall be responsible or liable to the other
party for non-performance or delay in performance of any terms or conditions of
this Agreement due to acts of God, acts of governments, wars, riots, strikes or
other labor disputes, shortages of labor or materials, or other causes beyond
the reasonable control of the non-performing or delayed party, provided,
however, non-performance or delay in excess of one hundred eighty (180) days
shall constitute cause for termination of this Agreement by either party.

               19.7 This Agreement may be executed in any number of
counterparts, each of which shall be deemed an original, but such counterparts
together shall constitute only one and the same instrument.

               19.8 Any waiver (express or implied) by either party of any
breach of this agreement shall not constitute a waiver of any other or
subsequent breach.

               19.9 In the event any provision of this Agreement is held to be
invalid or unenforceable, the valid or enforceable portion thereof and the
remaining provisions of this Agreement will remain in full force and effect.

                                      -12-
<PAGE>   13

               19.10 Each party hereto is an independent contractor of the
other, and neither shall be deemed an employee, agent, partner or joint venturer
of the other. Neither party shall make any commitment, by contract or otherwise,
binding upon the other nor represent that it has any authority to do so.

               19.11 Each party shall obey all applicable laws and regulations
in the performance of its respective duties and tasks under this Agreement and
shall use its best efforts to assist the other party to do likewise.

               19.12 Each party shall designate a single management
representative who shall be the primary point of contact for that party in its
relations with the other party hereunder, and each party may change its
representative from time to time upon prior written notice to the other party.
Initially, the SMI representative shall be Gerald L. Quinnell and the SPECTRIAN
representative shall be Chris Tubis.

               19.13 This Agreement shall be governed by the laws of the state
of California without regard to its conflicts of laws principles.

                                      -13-
<PAGE>   14

        IN WITNESS WHEREOF the parties have caused this agreement to be executed
by their respective duly authorized representatives.

FOR STANFORD MICRODEVICES, INC.          FOR SPECTRIAN CORPORATION

/s/ Gerald L. Quinnell                   /s/ Chris Tubis
-------------------------------          ---------------------------------
(signature)                              (signature)

Gerald L. Quinnell                       Chris Tubis

Chief Operating Officer                  President
STANFORD MICRODEVICES, INC.              Semiconductor Division
                                         SPECTRIAN CORPORATION

Nov 8, 1999                              5th Nov 1999
-------------------------------          ---------------------------------
(date)                                   (date)

                                      -14-
<PAGE>   15

                                    EXHIBIT A

                             PRODUCT SPECIFICATIONS

                                     [***]

[***] Certain information on this page has been omitted and filed separately
      with the Commission. Confidential treatment has been requested with
      respect to the omitted portions.
<PAGE>   16

                                     [***]

[***] Certain information on this page has been omitted and filed separately
      with the Commission. Confidential treatment has been requested with

                                      -2-
<PAGE>   17

                                    EXHIBIT B

                                     PRICING

<TABLE>
<CAPTION>
---------------------------------------------        -----------------------------------------------
                TRANSISTORS                                            WAFERS/DIE
---------------------------------------------        -----------------------------------------------
DEVICE                         PRICE (EACH)          TYPE                            PRICE (EACH)
---------------------------------------------        -----------------------------------------------
<S>                            <C>                   <C>                       <C>
[***]                          [***]                 [***]                          [***]
---------------------------------------------        -----------------------------------------------

                                                                             CAPACITORS
                                                     -----------------------------------------------
                                                     TYPE                            PRICE/WAFER
                                                     -----------------------------------------------
                                                     [***]                          [***]
                                                     -----------------------------------------------
</TABLE>

[***] Certain information on this page has been omitted and filed separately
      with the Commission. Confidential treatment has been requested with
      respect to the omitted portions.
<PAGE>   18

                                    EXHIBIT C

                           MAJOR CHANGE CLASSIFICATION

The following are considered major changes and require SMI notification prior to
implementation.

WAFER FABRICATION

[***]

PACKAGING

[***]

[***] Certain information on this page has been omitted and filed separately
      with the Commission. Confidential treatment has been requested with
      respect to the omitted portions.
<PAGE>   19

                                    EXHIBIT D

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------
                          LDMOS TRANSISTOR ASSEMBLY
-----------------------------------------------------------------------------------------------
TRANSISTOR MODEL                  DEVICE P/N                     ASSEMBLY SPECIFICATION
-----------------------------------------------------------------------------------------------
<S>                               <C>                            <C>
[***]                             [***]                          [***]
-----------------------------------------------------------------------------------------------
</TABLE>

Specifications 510XXX"

[***] Certain information on this page has been omitted and filed separately
      with the Commission. Confidential treatment has been requested with
      respect to the omitted portions.

<PAGE>   20

                                    EXHIBIT E

INTELLECTUAL PROPERTY FOR ASSEMBLY/TEST OF SPECTRIAN DEVICES USING SPECTRIAN
DICE<PAGE>   1
                                                                   Exhibit 10.11

                           STANFORD MICRODEVICES, INC.

                      AMENDED AND RESTATED 1998 STOCK PLAN

                         AS ADOPTED ON FEBRUARY 30, 1998
                        AS AMENDED ON SEPTEMBER 30, 1999
                         AS AMENDED ON DECEMBER 15, 1999
                  AS AMENDED AND RESTATED ON FEBRUARY 18, 2000

        1. Purposes of the Plan.  The purposes of this 1998 Stock Plan are:

            -  to attract and retain the best available personnel for positions
               of substantial responsibility,

            -  to provide additional incentive to Employees, Directors and
               Consultants, and

            -  to promote the success of the Company's business.

            Options granted under the Plan may be Incentive Stock Options or
Nonstatutory Stock Options, as determined by the Administrator at the time of
grant. Stock Purchase Rights may also be granted under the Plan.

        2.  Definitions.  As used herein, the following definitions shall apply:

            (a) "Administrator" means the Board or any of its Committees as
shall be administering the Plan, in accordance with Section 4 of the Plan.

            (b) "Applicable Laws" means the requirements relating to the
administration of stock option plans under U. S. state corporate laws, U.S.
federal and state securities laws, the Code, any stock exchange or quotation
system on which the Common Stock is listed or quoted and the applicable laws of
any foreign country or jurisdiction where Options or Stock Purchase Rights are,
or will be, granted under the Plan.

            (c) "Board" means the Board of Directors of the Company.

            (d) "Code" means the Internal Revenue Code of 1986, as amended.

            (e) "Committee" means a committee of Directors appointed by the
Board in accordance with Section 4 of the Plan.

            (f) "Common Stock" means the common stock of the Company.

            (g) "Company" means Stanford Microdevices, Inc., a Delaware
corporation.

<PAGE>   2

            (h) "Consultant" means any person, including an advisor, engaged by
the Company or a Parent or Subsidiary to render services to such entity.

            (i) "Director" means a member of the Board.

            (j) "Disability" means total and permanent disability as defined in
Section 22(e)(3) of the Code.

            (k) "Employee" means any person, including Officers and Directors,
employed by the Company or any Parent or Subsidiary of the Company. A Service
Provider shall not cease to be an Employee in the case of (i) any leave of
absence approved by the Company or (ii) transfers between locations of the
Company or between the Company, its Parent, any Subsidiary, or any successor.
For purposes of Incentive Stock Options, no such leave may exceed ninety days,
unless reemployment upon expiration of such leave is guaranteed by statute or
contract. If reemployment upon expiration of a leave of absence approved by the
Company is not so guaranteed, on the 181st day of such leave any Incentive Stock
Option held by the Optionee shall cease to be treated as an Incentive Stock
Option and shall be treated for tax purposes as a Nonstatutory Stock Option.
Neither service as a Director nor payment of a director's fee by the Company
shall be sufficient to constitute "employment" by the Company.

            (l) "Exchange Act" means the Securities Exchange Act of 1934, as
amended.

            (m) "Fair Market Value" means, as of any date, the value of Common
Stock determined as follows:

                (i) If the Common Stock is listed on any established stock
exchange or a national market system, including without limitation the Nasdaq
National Market or The Nasdaq SmallCap Market of The Nasdaq Stock Market, its
Fair Market Value shall be the closing sales price for such stock (or the
closing bid, if no sales were reported) as quoted on such exchange or system for
the last market trading day prior to the time of determination, as reported in
The Wall Street Journal or such other source as the Administrator deems
reliable;

                (ii) If the Common Stock is regularly quoted by a recognized
securities dealer but selling prices are not reported, the Fair Market Value of
a Share of Common Stock shall be the mean between the high bid and low asked
prices for the Common Stock on the last market trading day prior to the day of
determination, as reported in The Wall Street Journal or such other source as
the Administrator deems reliable; or

                (iii) In the absence of an established market for the Common
Stock, the Fair Market Value shall be determined in good faith by the
Administrator.

            (n) "Incentive Stock Option" means an Option intended to qualify as
an incentive stock option within the meaning of Section 422 of the Code and the
regulations promulgated thereunder.

            (o) "Inside Director" means a Director who is an Employee.

                                      -2-
<PAGE>   3

            (p) "IPO Effective Date" means the date upon which the Securities
and Exchange Commission declares the initial public offering of the Company's
common stock as effective.

            (q) "Nonstatutory Stock Option" means an Option not intended to
qualify as an Incentive Stock Option.

            (r) "Notice of Grant" means a written or electronic notice
evidencing certain terms and conditions of an individual Option or Stock
Purchase Right grant. The Notice of Grant is part of the Option Agreement.

            (s) "Officer" means a person who is an officer of the Company within
the meaning of Section 16 of the Exchange Act and the rules and regulations
promulgated thereunder.

            (t) "Option" means a stock option granted pursuant to the Plan.

            (u) "Option Agreement" means an agreement between the Company and an
Optionee evidencing the terms and conditions of an individual Option grant. The
Option Agreement is subject to the terms and conditions of the Plan.

            (v) "Option Exchange Program" means a program whereby outstanding
Options are surrendered in exchange for Options with a lower exercise price.

            (w) "Optioned Stock" means the Common Stock subject to an Option or
Stock Purchase Right.

            (x) "Optionee" means the holder of an outstanding Option or Stock
Purchase Right granted under the Plan.

            (y) "Outside Director" means a Director who is not an Employee.

            (z) "Parent" means a "parent corporation," whether now or hereafter
existing, as defined in Section 424(e) of the Code.

            (aa) "Plan" means this 1998 Stock Plan.

            (bb) "Restricted Stock" means shares of Common Stock acquired
pursuant to a grant of Stock Purchase Rights under Section 11 of the Plan.

            (cc) "Restricted Stock Purchase Agreement" means a written agreement
between the Company and the Optionee evidencing the terms and restrictions
applying to stock purchased under a Stock Purchase Right. The Restricted Stock
Purchase Agreement is subject to the terms and conditions of the Plan and the
Notice of Grant.

            (dd) "Rule 16b-3" means Rule 16b-3 of the Exchange Act or any
successor to Rule 16b-3, as in effect when discretion is being exercised with
respect to the Plan.

            (ee) "Section 16(b)" means Section 16(b) of the Exchange Act.

                                      -3-
<PAGE>   4

            (ff) "Service Provider" means an Employee, Director or Consultant.

            (gg) "Share" means a share of the Common Stock, as adjusted in
accordance with Section 14 of the Plan.

            (hh) "Stock Purchase Right" means the right to purchase Common Stock
pursuant to Section 11 of the Plan, as evidenced by a Notice of Grant.

            (ii) "Subsidiary" means a "subsidiary corporation", whether now or
hereafter existing, as defined in Section 424(f) of the Code.

        3.  Stock Subject to the Plan. Subject to the provisions of Section 14
of the Plan, the maximum aggregate number of Shares that may be optioned and
sold under the Plan is 7,194,691 Shares, plus an annual increase to be added on
the first day of the Company's fiscal year beginning in 2001, equal to the
lesser of (i) 1,500,000 shares, (ii) 3% of the outstanding shares on such date
or (iii) a lesser amount determined by the Board. The Shares may be authorized,
but unissued, or reacquired Common Stock.

            If an Option or Stock Purchase Right expires or becomes
unexercisable without having been exercised in full, or is surrendered pursuant
to an Option Exchange Program, the unpurchased Shares which were subject thereto
shall become available for future grant or sale under the Plan (unless the Plan
has terminated); provided, however, that Shares that have actually been issued
under the Plan, whether upon exercise of an Option or Right, shall not be
returned to the Plan and shall not become available for future distribution
under the Plan, except that if Shares of Restricted Stock are repurchased by the
Company at their original purchase price, such Shares shall become available for
future grant under the Plan.

        4.  Administration of the Plan.

            (a) Procedure.

                (i) Multiple Administrative Bodies. Different Committees with
respect to different groups of Service Providers may administer the Plan.

                (ii) Section 162(m). To the extent that the Administrator
determines it to be desirable to qualify Options granted hereunder as
"performance-based compensation" within the meaning of Section 162(m) of the
Code, the Plan shall be administered by a Committee of two or more "outside
directors" within the meaning of Section 162(m) of the Code.

                (iii) Rule 16b-3. To the extent desirable to qualify
transactions hereunder as exempt under Rule 16b-3, the transactions contemplated
hereunder shall be structured to satisfy the requirements for exemption under
Rule 16b-3.

                (iv) Other Administration. Other than as provided above, the
Plan shall be administered by (A) the Board or (B) a Committee, which committee
shall be constituted to satisfy Applicable Laws.

                                      -4-
<PAGE>   5

            (b) Powers of the Administrator. Subject to the provisions of the
Plan, and in the case of a Committee, subject to the specific duties delegated
by the Board to such Committee, the Administrator shall have the authority, in
its discretion:

                (i) to determine the Fair Market Value;

                (ii) to select the Service Providers to whom Options and Stock
Purchase Rights may be granted hereunder;

                (iii) to determine the number of shares of Common Stock to be
covered by each Option and Stock Purchase Right granted hereunder;

                (iv) to approve forms of agreement for use under the Plan;

                (v) to determine the terms and conditions, not inconsistent with
the terms of the Plan, of any Option or Stock Purchase Right granted hereunder.
Such terms and conditions include, but are not limited to, the exercise price,
the time or times when Options or Stock Purchase Rights may be exercised (only
the Board may determine whether vesting may be based on performance criteria),
any vesting acceleration or waiver of forfeiture restrictions (the Board may not
delegate this power), and any restriction or limitation regarding any Option or
Stock Purchase Right or the shares of Common Stock relating thereto, based in
each case on such factors as the Administrator, in its sole discretion, shall
determine;

                (vi) to reduce the exercise price of any Option or Stock
Purchase Right to the then current Fair Market Value if the Fair Market Value of
the Common Stock covered by such Option or Stock Purchase Right shall have
declined since the date the Option or Stock Purchase Right was granted (the
Board may not delegate this power);

                (vii) to institute an Option Exchange Program (the Board may not
delegate this power);

                (viii) to construe and interpret the terms of the Plan and
awards granted pursuant to the Plan;

                (ix) to prescribe, amend and rescind rules and regulations
relating to the Plan, including rules and regulations relating to sub-plans
established for the purpose of qualifying for preferred tax treatment under
foreign tax laws;

                (x) to modify or amend each Option or Stock Purchase Right
(subject to Section 16(c) of the Plan), including the discretionary authority to
extend the post-termination exercisability period of Options longer than is
otherwise provided for in the Plan (the Board may not delegate this power);

                (xi) to allow Optionees to satisfy withholding tax obligations
by electing to have the Company withhold from the Shares to be issued upon
exercise of an Option or Stock Purchase Right that number of Shares having a
Fair Market Value equal to the amount required to be withheld. The Fair Market
Value of the Shares to be withheld shall be determined on the date that

                                      -5-
<PAGE>   6

the amount of tax to be withheld is to be determined. All elections by an
Optionee to have Shares withheld for this purpose shall be made in such form and
under such conditions as the Administrator may deem necessary or advisable;

                (xii) to authorize any person to execute on behalf of the
Company any instrument required to effect the grant of an Option or Stock
Purchase Right previously granted by the Administrator;

                (xiii) to make all other determinations deemed necessary or
advisable for administering the Plan.

            (c) Effect of Administrator's Decision. The Administrator's
decisions, determinations and interpretations shall be final and binding on all
Optionees and any other holders of Options or Stock Purchase Rights.

        5.  Eligibility. Nonstatutory Stock Options and Stock Purchase Rights
may be granted to Service Providers. Incentive Stock Options may be granted only
to Employees.

        6.  Limitations.

            (a) Each Option shall be designated in the Option Agreement as
either an Incentive Stock Option or a Nonstatutory Stock Option. However,
notwithstanding such designation, to the extent that the aggregate Fair Market
Value of the Shares with respect to which Incentive Stock Options are
exercisable for the first time by the Optionee during any calendar year (under
all plans of the Company and any Parent or Subsidiary) exceeds $100,000, such
Options shall be treated as Nonstatutory Stock Options. For purposes of this
Section 6(a), Incentive Stock Options shall be taken into account in the order
in which they were granted. The Fair Market Value of the Shares shall be
determined as of the time the Option with respect to such Shares is granted.

            (b) Neither the Plan nor any Option or Stock Purchase Right shall
confer upon an Optionee any right with respect to continuing the Optionee's
relationship as a Service Provider with the Company, nor shall they interfere in
any way with the Optionee's right or the Company's right to terminate such
relationship at any time, with or without cause.

            (c) The following limitations shall apply to grants of Options:

                (i) No Service Provider shall be granted, in any fiscal year of
the Company, Options to purchase more than 1,000,000 Shares.

                (ii) In connection with his or her initial service, a Service
Provider may be granted Options to purchase up to an additional 1,000,000
Shares, which shall not count against the limit set forth in subsection (i)
above.

                (iii) The foregoing limitations shall be adjusted
proportionately in connection with any change in the Company's capitalization as
described in Section 14.

                                      -6-
<PAGE>   7

                (iv) If an Option is cancelled in the same fiscal year of the
Company in which it was granted (other than in connection with a transaction
described in Section 14), the cancelled Option will be counted against the
limits set forth in subsections (i) and (ii) above. For this purpose, if the
exercise price of an Option is reduced, the transaction will be treated as a
cancellation of the Option and the grant of a new Option.

        7.  Term of Plan. Subject to Section 20 of the Plan, the amendment and
restatement of the Plan shall become effective upon the IPO Effective Date. It
shall continue in effect for a term of ten (10) years from the date of obtaining
stockholder approval of the Plan in 2000, unless terminated earlier under
Section 16 of the Plan.

        8.  Term of Option. The term of each Option shall be stated in the
Option Agreement. In the case of an Incentive Stock Option, the term shall be
ten (10) years from the date of grant or such shorter term as may be provided in
the Option Agreement. Moreover, in the case of an Incentive Stock Option granted
to an Optionee who, at the time the Incentive Stock Option is granted, owns
stock representing more than ten percent (10%) of the total combined voting
power of all classes of stock of the Company or any Parent or Subsidiary, the
term of the Incentive Stock Option shall be five (5) years from the date of
grant or such shorter term as may be provided in the Option Agreement.

        9.  Option Exercise Price and Consideration.

            (a) Exercise Price. The per share exercise price for the Shares to
be issued  pursuant to exercise of an Option shall be determined
by the Administrator, subject to the following:

                (i) In the case of an Incentive Stock Option

                    (A) granted to an Employee who, at the time the Incentive
Stock Option is granted, owns stock representing more than ten percent (10%) of
the voting power of all classes of stock of the Company or any Parent or
Subsidiary, the per Share exercise price shall be no less than 110% of the Fair
Market Value per Share on the date of grant.

                    (B) granted to any Employee other than an Employee described
in paragraph (A) immediately above, the per Share exercise price shall be no
less than 100% of the Fair Market Value per Share on the date of grant.

                (ii) In the case of a Nonstatutory Stock Option, the per Share
exercise price shall be determined by the Administrator. In the case of a
Nonstatutory Stock Option intended to qualify as "performance-based
compensation" within the meaning of Section 162(m) of the Code, the per Share
exercise price shall be no less than 100% of the Fair Market Value per Share on
the date of grant.

                (iii) Notwithstanding the foregoing, Options may be granted with
a per Share exercise price of less than 100% of the Fair Market Value per Share
on the date of grant pursuant to a merger or other corporate transaction.

                                      -7-
<PAGE>   8

               (b) Waiting Period and Exercise Dates. At the time an Option is
granted, the Administrator shall fix the period within which the Option may be
exercised and shall determine any conditions that must be satisfied before the
Option may be exercised.

               (c) Form of Consideration. The Administrator shall determine the
acceptable form of consideration for exercising an Option, including the method
of payment. In the case of an Incentive Stock Option, the Administrator shall
determine the acceptable form of consideration at the time of grant. Such
consideration may consist entirely of:

                   (i) cash;

                   (ii) check;

                   (iii) promissory note;

                   (iv) other Shares which (A) in the case of Shares acquired
upon exercise of an option, have been owned by the Optionee for more than six
months on the date of surrender, and (B) have a Fair Market Value on the date of
surrender equal to the aggregate exercise price of the Shares as to which said
Option shall be exercised;

                   (v) consideration received by the Company under a cashless
exercise program implemented by the Company in connection with the Plan;

                   (vi) a reduction in the amount of any Company liability to
the Optionee, including any liability attributable to the Optionee's
participation in any Company-sponsored deferred compensation program or
arrangement;

                   (vii) any combination of the foregoing methods of payment; or

                   (viii) such other consideration and method of payment for the
issuance of Shares to the extent permitted by Applicable Laws.

        10. Exercise of Option.

            (a) Procedure for Exercise; Rights as a Shareholder. Any Option
granted hereunder shall be exercisable according to the terms of the Plan and at
such times and under such conditions as determined by the Administrator and set
forth in the Option Agreement. Unless the Administrator provides otherwise,
vesting of Options granted hereunder shall be tolled during any unpaid leave of
absence. An Option may not be exercised for a fraction of a Share.

                An Option shall be deemed exercised when the Company receives:
(i) written or electronic notice of exercise (in accordance with the Option
Agreement) from the person entitled to exercise the Option, and (ii) full
payment for the Shares with respect to which the Option is exercised. Full
payment may consist of any consideration and method of payment authorized by the
Administrator and permitted by the Option Agreement and the Plan. Shares issued
upon exercise of an Option shall be issued in the name of the Optionee or, if
requested by the Optionee, in the name of the Optionee and his or her spouse.
Until the Shares are issued (as evidenced by the appropriate

                                      -8-
<PAGE>   9

entry on the books of the Company or of a duly authorized transfer agent of the
Company), no right to vote or receive dividends or any other rights as a
shareholder shall exist with respect to the Optioned Stock, notwithstanding the
exercise of the Option. The Company shall issue (or cause to be issued) such
Shares promptly after the Option is exercised. No adjustment will be made for a
dividend or other right for which the record date is prior to the date the
Shares are issued, except as provided in Section 14 of the Plan.

                   Exercising an Option in any manner shall decrease the number
of Shares thereafter available, both for purposes of the Plan and for sale under
the Option, by the number of Shares as to which the Option is exercised.

               (b) Termination of Relationship as a Service Provider. If an
Optionee ceases to be a Service Provider, other than upon the Optionee's death
or Disability, the Optionee may exercise his or her Option within such period of
time as is specified in the Option Agreement to the extent that the Option is
vested on the date of termination (but in no event later than the expiration of
the term of such Option as set forth in the Option Agreement). In the absence of
a specified time in the Option Agreement, the Option shall remain exercisable
for three (3) months following the Optionee's termination. If, on the date of
termination, the Optionee is not vested as to his or her entire Option, the
Shares covered by the unvested portion of the Option shall revert to the Plan.
If, after termination, the Optionee does not exercise his or her Option within
the time specified by the Administrator, the Option shall terminate, and the
Shares covered by such Option shall revert to the Plan.

               (c) Disability of Optionee. If an Optionee ceases to be a Service
Provider as a result of the Optionee's Disability, the Optionee may exercise his
or her Option within such period of time as is specified in the Option Agreement
to the extent the Option is vested on the date of termination (but in no event
later than the expiration of the term of such Option as set forth in the Option
Agreement). In the absence of a specified time in the Option Agreement, the
Option shall remain exercisable for twelve (12) months following the Optionee's
termination. If, on the date of termination, the Optionee is not vested as to
his or her entire Option, the Shares covered by the unvested portion of the
Option shall revert to the Plan. If, after termination, the Optionee does not
exercise his or her Option within the time specified herein, the Option shall
terminate, and the Shares covered by such Option shall revert to the Plan.

               (d) Death of Optionee. If an Optionee dies while a Service
Provider, the Option may be exercised within such period of time as is specified
in the Option Agreement (but in no event later than the expiration of the term
of such Option as set forth in the Notice of Grant), by the Optionee's estate or
by a person who acquires the right to exercise the Option by bequest or
inheritance, but only to the extent that the Option is vested on the date of
death. In the absence of a specified time in the Option Agreement, the Option
shall remain exercisable for twelve (12) months following the Optionee's
termination. If, at the time of death, the Optionee is not vested as to his or
her entire Option, the Shares covered by the unvested portion of the Option
shall immediately revert to the Plan. The Option may be exercised by the
executor or administrator of the Optionee's estate or, if none, by the person(s)
entitled to exercise the Option under the Optionee's will or the laws of descent
or distribution. If the Option is not so exercised within the time specified
herein, the Option shall terminate, and the Shares covered by such Option shall
revert to the Plan.

                                      -9-
<PAGE>   10

               (e) Buyout Provisions. The Administrator may at any time offer to
buy out for a payment in cash or Shares an Option previously granted based on
such terms and conditions as the Administrator shall establish and communicate
to the Optionee at the time that such offer is made.

        11. Stock Purchase Rights.

               (a) Rights to Purchase. Stock Purchase Rights may be issued
either alone, in addition to, or in tandem with other awards granted under the
Plan and/or cash awards made outside of the Plan. After the Administrator
determines that it will offer Stock Purchase Rights under the Plan, it shall
advise the offeree in writing or electronically, by means of a Notice of Grant,
of the terms, conditions and restrictions related to the offer, including the
number of Shares that the offeree shall be entitled to purchase, the price to be
paid, and the time within which the offeree must accept such offer. The offer
shall be accepted by execution of a Restricted Stock Purchase Agreement in the
form determined by the Administrator.

               (b) Repurchase Option. Unless the Administrator determines
otherwise, the Restricted Stock Purchase Agreement shall grant the Company a
repurchase option exercisable upon the voluntary or involuntary termination of
the purchaser's service with the Company for any reason (including death or
Disability). The purchase price for Shares repurchased pursuant to the
Restricted Stock Purchase Agreement shall be the original price paid by the
purchaser and may be paid by cancellation of any indebtedness of the purchaser
to the Company. The repurchase option shall lapse at a rate determined by the
Administrator.

               (c) Other Provisions. The Restricted Stock Purchase Agreement
shall contain such other terms, provisions and conditions not inconsistent with
the Plan as may be determined by the Administrator in its sole discretion.

               (d) Rights as a Shareholder. Once the Stock Purchase Right is
exercised, the purchaser shall have the rights equivalent to those of a
shareholder, and shall be a shareholder when his or her purchase is entered upon
the records of the duly authorized transfer agent of the Company. No adjustment
will be made for a dividend or other right for which the record date is prior to
the date the Stock Purchase Right is exercised, except as provided in Section 14
of the Plan.

        12. Non-Transferability of Options and Stock Purchase Rights. Unless
determined otherwise by the Administrator, an Option or Stock Purchase Right may
not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any
manner other than by will or by the laws of descent or distribution and may be
exercised, during the lifetime of the Optionee, only by the Optionee. If the
Administrator makes an Option or Stock Purchase Right transferable, such Option
or Stock Purchase Right shall contain such additional terms and conditions as
the Administrator deems appropriate.

        13.Formula Option Grants to Outside Directors. Outside Directors shall
be automatically granted Options each year in accordance with the following
provisions:

               (a) All Options granted pursuant to this Section shall be
Nonstatutory Stock Options and, except as otherwise provided herein, shall be
subject to the other terms and conditions of the Plan.

                                      -10-
<PAGE>   11

               (b) Each person who first becomes an Outside Director on or after
the IPO Effective Date, whether through election by the stockholders of the
Company or appointment by the Board to fill a vacancy, shall be automatically
granted an Option to purchase 40,000 Shares (the "First Option") on the date he
or she first becomes an Outside Director; provided, however, that an Inside
Director who ceases to be an Inside Director but who remains a Director shall
not receive a First Option.

               (c) Each Outside Director shall be automatically granted an
Option to purchase 10,000 Shares (a "Subsequent Option") following each annual
meeting of the stockholders of the Company, except in the case of the first such
annual meeting after the IPO Effective Date if such annual meeting is held
within six (6) months of the IPO Effective Date, if as of such date, he or she
shall continue to serve on the Board and shall have served on the Board for at
least the preceding six (6) months.

               (d) Notwithstanding the provisions of subsections (b) and (c)
hereof, any exercise of an Option granted before the Company has obtained
stockholder approval of the Plan in accordance with Section 20 hereof shall be
conditioned upon obtaining such stockholder approval of the Plan in accordance
with Section 20 hereof.

               (e) The terms of each First Option granted pursuant to this
Section shall be as follows:

                   (i) the term of the First Option shall be ten (10) years.

                   (ii) the exercise price per Share shall be 100% of the Fair
Market Value per Share on the date of grant of the First Option.

                   (iii) the First Option shall vest as to 25% of the Shares
subject to the First Option on each anniversary of its date of grant provided
that the Optionee continues to serve as a Director on such dates.

               (f) The terms of each Subsequent Option granted pursuant to this
Section shall be as follows:

                   (i) the term of the Subsequent Option shall be ten (10)
years.

                   (ii) the exercise price per Share shall be 100% of the Fair
Market Value per Share on the date of grant of the Subsequent Option.

                   (iii) the Subsequent Option shall vest as to 25% of the
Shares subject to the Subsequent Option on each anniversary of its date of grant
provided that the Optionee continues to serve as a Director on such dates.

        14. Adjustments Upon Changes in Capitalization, Dissolution, Merger or
Asset Sale.

               (a) Changes in Capitalization. Subject to any required action by
the shareholders of the Company, the number of shares of Common Stock covered by
each outstanding Option and

                                      -11-
<PAGE>   12

Stock Purchase Right, and the number of shares of Common Stock which have been
authorized for issuance under the Plan but as to which no Options or Stock
Purchase Rights have yet been granted or which have been returned to the Plan
upon cancellation or expiration of an Option or Stock Purchase Right, as well as
the price per share of Common Stock covered by each such outstanding Option or
Stock Purchase Right, shall be proportionately adjusted for any increase or
decrease in the number of issued shares of Common Stock resulting from a stock
split, reverse stock split, stock dividend, combination or reclassification of
the Common Stock, or any other increase or decrease in the number of issued
shares of Common Stock effected without receipt of consideration by the Company;
provided, however, that conversion of any convertible securities of the Company
shall not be deemed to have been "effected without receipt of consideration."
Such adjustment shall be made by the Board, whose determination in that respect
shall be final, binding and conclusive. Except as expressly provided herein, no
issuance by the Company of shares of stock of any class, or securities
convertible into shares of stock of any class, shall affect, and no adjustment
by reason thereof shall be made with respect to, the number or price of shares
of Common Stock subject to an Option or Stock Purchase Right.

               (b) Dissolution or Liquidation. In the event of the proposed
dissolution or liquidation of the Company, the Administrator shall notify each
Optionee as soon as practicable prior to the effective date of such proposed
transaction. The Administrator in its discretion may provide for an Optionee to
have the right to exercise his or her Option until ten (10) days prior to such
transaction as to all of the Optioned Stock covered thereby, including Shares as
to which the Option would not otherwise be exercisable. In addition, the
Administrator may provide that any Company repurchase option applicable to any
Shares purchased upon exercise of an Option or Stock Purchase Right shall lapse
as to all such Shares, provided the proposed dissolution or liquidation takes
place at the time and in the manner contemplated. To the extent it has not been
previously exercised, an Option or Stock Purchase Right will terminate
immediately prior to the consummation of such proposed action.

               (c) Merger or Asset Sale. In the event of a merger of the Company
with or into another corporation, or the sale of substantially all of the assets
of the Company, each outstanding Option and Stock Purchase Right shall be
assumed or an equivalent option or right substituted by the successor
corporation or a Parent or Subsidiary of the successor corporation. With respect
to Options granted to an Outside Director pursuant to Section 13 that are
assumed or substituted for, if following such assumption or substitution the
Optionee's status as a Director or a director of the successor corporation, as
applicable, is terminated other than upon a voluntary resignation by the
Optionee, then the Optionee shall fully vest in and have the right to exercise
the Option as to all of the Optioned Stock, including Shares as to which it
would not otherwise be vested or exercisable.

                   In the event that the successor corporation refuses to assume
or substitute for the Option or Stock Purchase Right, the Optionee shall fully
vest in and have the right to exercise the Option or Stock Purchase Right as to
all of the Optioned Stock, including Shares as to which it would not otherwise
be vested or exercisable. If an Option or Stock Purchase Right becomes fully
vested and exercisable in lieu of assumption or substitution in the event of a
merger or sale of assets, the Administrator shall notify the Optionee in writing
or electronically that the Option or Stock Purchase Right shall be fully vested
and exercisable for a period of fifteen (15) days from the date of

                                      -12-
<PAGE>   13

such notice, and the Option or Stock Purchase Right shall terminate upon the
expiration of such period.

                   For the purposes of this paragraph, the Option or Stock
Purchase Right shall be considered assumed if, following the merger or sale of
assets, the option or right confers the right to purchase or receive, for each
Share of Optioned Stock subject to the Option or Stock Purchase Right
immediately prior to the merger or sale of assets, the consideration (whether
stock, cash, or other securities or property) received in the merger or sale of
assets by holders of Common Stock for each Share held on the effective date of
the transaction (and if holders were offered a choice of consideration, the type
of consideration chosen by the holders of a majority of the outstanding Shares);
provided, however, that if such consideration received in the merger or sale of
assets is not solely common stock of the successor corporation or its Parent,
the Administrator may, with the consent of the successor corporation, provide
for the consideration to be received upon the exercise of the Option or Stock
Purchase Right, for each Share of Optioned Stock subject to the Option or Stock
Purchase Right, to be solely common stock of the successor corporation or its
Parent equal in fair market value to the per share consideration received by
holders of Common Stock in the merger or sale of assets.

        15. Date of Grant. The date of grant of an Option or Stock Purchase
Right shall be, for all purposes, the date on which the Administrator makes the
determination granting such Option or Stock Purchase Right, or such other later
date as is determined by the Administrator. Notice of the determination shall be
provided to each Optionee within a reasonable time after the date of such grant.

        16. Amendment and Termination of the Plan.

               (a) Amendment and Termination. The Board may at any time amend,
alter, suspend or terminate the Plan.

               (b) Shareholder Approval. The Company shall obtain shareholder
approval of any Plan amendment to the extent necessary and desirable to comply
with Applicable Laws.

               (c) Effect of Amendment or Termination. No amendment, alteration,
suspension or termination of the Plan shall impair the rights of any Optionee,
unless mutually agreed otherwise between the Optionee and the Administrator,
which agreement must be in writing and signed by the Optionee and the Company.
Termination of the Plan shall not affect the Administrator's ability to exercise
the powers granted to it hereunder with respect to Options granted under the
Plan prior to the date of such termination.

        17. Conditions Upon Issuance of Shares.

               (a) Legal Compliance. Shares shall not be issued pursuant to the
exercise of an Option or Stock Purchase Right unless the exercise of such Option
or Stock Purchase Right and the issuance and delivery of such Shares shall
comply with Applicable Laws and shall be further subject to the approval of
counsel for the Company with respect to such compliance.

                                      -13-
<PAGE>   14

               (b) Investment Representations. As a condition to the exercise of
an Option or Stock Purchase Right, the Company may require the person exercising
such Option or Stock Purchase Right to represent and warrant at the time of any
such exercise that the Shares are being purchased only for investment and
without any present intention to sell or distribute such Shares if, in the
opinion of counsel for the Company, such a representation is required.

        18. Inability to Obtain Authority. The inability of the Company to
obtain authority from any regulatory body having jurisdiction, which authority
is deemed by the Company's counsel to be necessary to the lawful issuance and
sale of any Shares hereunder, shall relieve the Company of any liability in
respect of the failure to issue or sell such Shares as to which such requisite
authority shall not have been obtained.

        19.Reservation of Shares. The Company, during the term of this Plan,
will at all times reserve and keep available such number of Shares as shall be
sufficient to satisfy the requirements of the Plan.

        20.Shareholder Approval. The Plan shall be subject to approval by the
shareholders of the Company within twelve (12) months after the date the Plan is
adopted. Such shareholder approval shall be obtained in the manner and to the
degree required under Applicable Laws.

                                      -14-
<PAGE>   15

                           STANFORD MICRODEVICES, INC.

                                 1998 STOCK PLAN

                             STOCK OPTION AGREEMENT

                                [U.S. EMPLOYEES]

        Unless otherwise defined herein, the terms defined in the Plan shall
have the same defined meanings in this Option Agreement.

1.         NOTICE OF STOCK OPTION GRANT

        [Optionee's Name and Address]

        The undersigned Optionee has been granted an Option to purchase Common
Stock of the Company, subject to the terms and conditions of the Plan and this
Option Agreement, as follows:

        Grant Number                            ________________________

        Date of Grant                           ________________________

        Vesting Commencement Date               ________________________

        Exercise Price per Share                $________________________

        Total Number of Shares Granted          ________________________

        Total Exercise Price                    $________________________

        Type of Option:                               Incentive Stock Option
                                                -----

                                                      Nonstatutory Stock Option
                                                ------

        Term/Expiration Date:                   ________________________

        Vesting Schedule:

        This Option shall be exercisable, in whole or in part, according to the
following vesting schedule:

        25% of the Shares subject to the Option shall vest twelve months after
the Vesting Commencement Date, and 1/48 of the Shares subject to the Option
shall vest each month thereafter, subject to Optionee's continuing to be a
Service Provider on such dates.

<PAGE>   16

        Termination Period:

        This Option shall be exercisable for three months after Optionee ceases
to be a Service Provider. Upon Optionee's death or disability, this Option may
be exercised for one year after Optionee ceases to be a Service Provider. In no
event may Optionee exercise this Option after the Term/Expiration Date as
provided above.

2.         AGREEMENT

               (a) Grant of Option. The Plan Administrator of the Company hereby
grants to the Optionee named in the Notice of Grant (the "Optionee"), an option
(the "Option") to purchase the number of Shares set forth in the Notice of
Grant, at the exercise price per Share set forth in the Notice of Grant (the
"Exercise Price"), and subject to the terms and conditions of the Plan, which is
incorporated herein by reference. Subject to Section 14(c) of the Plan, in the
event of a conflict between the terms and conditions of the Plan and this Option
Agreement, the terms and conditions of the Plan shall prevail.

               If designated in the Notice of Grant as an Incentive Stock Option
("ISO"), this Option is intended to qualify as an Incentive Stock Option as
defined in Section 422 of the Code. Nevertheless, to the extent that it exceeds
the $100,000 rule of Code Section 422(d), this Option shall be treated as a
Nonstatutory Stock Option ("NSO").

               (b) Exercise of Option.

                   (i) Right to Exercise. This Option shall be exercisable
during its term in accordance with the Vesting Schedule set out in the Notice of
Grant and with the applicable provisions of the Plan and this Option Agreement.

                   (ii) Method of Exercise. This Option shall be exercisable by
delivery of an exercise notice in the form attached as Exhibit A (the AExercise
Notice@) which shall state the election to exercise the Option, the number of
Shares with respect to which the Option is being exercised, and such other
representations and agreements as may be required by the Company. The Exercise
Notice shall be accompanied by payment of the aggregate Exercise Price as to all
Exercised Shares. This Option shall be deemed to be exercised upon receipt by
the Company of such fully executed Exercise Notice accompanied by the aggregate
Exercise Price.

               No Shares shall be issued pursuant to the exercise of an Option
unless such issuance and such exercise complies with Applicable Laws. Assuming
such compliance, for income tax purposes the Shares shall be considered
transferred to the Optionee on the date on which the Option is exercised with
respect to such Shares.

               (c) Optionee's Representations. In the event the Shares have not
been registered under the Securities Act of 1933, as amended (the "Securities
Act"), at the time this Option is

                                      -2-
<PAGE>   17

exercised, the Optionee shall, if required by the Company, concurrently with the
exercise of all or any portion of this Option, deliver to the Company his or her
Investment Representation Statement in the form attached hereto as Exhibit B and
shall read the applicable rules of the Commissioner of Corporations attached to
such Investment Representation Statement.

               (d) Lock-Up Period. Optionee hereby agrees that, if so requested
by the Company or any representative of the underwriters (the "Managing
Underwriter") in connection with any registration of the offering of any
securities of the Company under the Securities Act, Optionee shall not sell or
otherwise transfer any Shares or other securities of the Company during the
180-day period (or such other period as may be requested in writing by the
Managing Underwriter and agreed to in writing by the Company) (the "Market
Standoff Period") following the effective date of a registration statement of
the Company filed under the Securities Act. Such restriction shall apply only to
the first registration statement of the Company to become effective under the
Securities Act that includes securities to be sold on behalf of the Company to
the public in an underwritten public offering under the Securities Act. The
Company may impose stop-transfer instructions with respect to securities subject
to the foregoing restrictions until the end of such Market Standoff Period.

               (e) Method of Payment. Payment of the aggregate Exercise Price
shall be by any of the following, or a combination thereof, at the election of
the Optionee:

                   (i) cash or check;

                   (ii) consideration received by the Company under a formal
cashless exercise program adopted by the Company in connection with the Plan; or

                   (iii) surrender of other Shares which, (i) in the case of
Shares acquired upon exercise of an option, have been owned by the Optionee for
more than six (6) months on the date of surrender, and (ii) have a Fair Market
Value on the date of surrender equal to the aggregate Exercise Price of the
Exercised Shares.

               (f) Restrictions on Exercise. This Option may not be exercised
until such time as the Plan has been approved by the shareholders of the
Company, or if the issuance of such Shares upon such exercise or the method of
payment of consideration for such shares would constitute a violation of any
Applicable Law.

               (g) Non-Transferability of Option. This Option may not be
transferred in any manner otherwise than by will or by the laws of descent or
distribution and may be exercised during the lifetime of Optionee only by
Optionee. The terms of the Plan and this Option Agreement shall be binding upon
the executors, administrators, heirs, successors and assigns of the Optionee.

               (h) Term of Option. This Option may be exercised only within the
term set out in the Notice of Grant, and may be exercised during such term only
in accordance with the Plan and the terms of this Option.

                                      -3-
<PAGE>   18

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

                   (i) Exercise of ISO. If this Option qualifies as an ISO,
there will be no regular federal 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 an adjustment to
the alternative minimum tax for federal tax purposes and may subject the
Optionee to the alternative minimum tax in the year of exercise.

                   (ii) Exercise of Nonstatutory Stock Option. There may be a
regular federal income tax liability upon the exercise of a Nonstatutory Stock
Option. The Optionee will be treated as having received compensation income
(taxable at ordinary income tax rates) equal to the excess, if any, of the Fair
Market Value of the Shares on the date of exercise over the Exercise Price. If
Optionee is an Employee or a former Employee, the Company will be required to
withhold from Optionee's compensation or collect from Optionee and pay to the
applicable taxing authorities an amount in cash equal to a percentage of this
compensation income at the time of exercise, and may refuse to honor the
exercise and refuse to deliver Shares if such withholding amounts are not
delivered at the time of exercise.

                   (iii) Disposition of Shares. In the case of an NSO, if Shares
are held for at least one year, any gain realized on disposition of the Shares
will be treated as long-term capital gain for federal income tax purposes. In
the case of an ISO, if Shares issuable upon exercise of the Option are held for
at least one year after exercise and for at least two years after the Date of
Grant, any gain realized on disposition of the Shares will also be treated as
long-term capital gain for federal income tax purposes. If Shares issued upon
exercise of an ISO are disposed of within one year after exercise or two years
after the Date of Grant, any gain realized on such disposition will be treated
as compensation income (taxable at ordinary income rates) to the extent of the
difference between the Exercise Price and the lesser of (1) the Fair Market
Value of the Shares on the date of exercise, or (2) the sale price of the
Shares. Any additional gain will be taxed as capital gain, short-term or
long-term depending on the period that the ISO Shares were held.

                   (iv) Notice of Disqualifying Disposition of ISO Shares. If
the Option granted to Optionee herein is an ISO, and if Optionee sells or
otherwise disposes of any of the Shares acquired upon exercise of to the ISO on
or before the later of (1) the date two years after the Date of Grant, or (2)
the date one year after the date of exercise, the Optionee shall immediately
notify the Company in writing of such disposition. Optionee acknowledges that
Optionee may be subject to income tax withholding by the Company on the
compensation income recognized by the Optionee.

               (j) Entire Agreement; Governing Law. The Plan is incorporated
herein by reference. The Plan and this Option Agreement constitute the entire
agreement of the

                                      -4-
<PAGE>   19

parties with respect to the subject matter hereof and supersede in their
entirety all prior undertakings and agreements of the Company and Optionee with
respect to the subject matter hereof, and may not be modified adversely to the
Optionee's interest except by means of a writing signed by the Company and
Optionee. This agreement is governed by the internal substantive laws but not
the choice of law rules of the State of California.

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

        Optionee acknowledges receipt of a copy of the Plan and represents that
he or she is familiar with the terms and provisions thereof, and hereby accepts
this Option subject to all of the terms and provisions thereof. Optionee has
reviewed the Plan and this Option in their entirety, has had an opportunity to
obtain the advice of counsel prior to executing this Option and fully
understands all provisions of the Option. Optionee hereby agrees to accept as
binding, conclusive and final all decisions or interpretations of the
Administrator upon any questions arising under the Plan or this Option. Optionee
further agrees to notify the Company upon any change in the residence address
indicated below.

                                      -5-
<PAGE>   20

OPTIONEE:                                   STANFORD MICRODEVICES, INC.

                                            By:
----------------------------------             -------------------------------
Signature
                                            Name:
                                                 -----------------------------

                                            Title:
-----------------------------------               ----------------------------
Print Name

Residence Address:

------------------------

------------------------

                                      -6-
<PAGE>   21

                                    EXHIBIT A

                                 1998 STOCK PLAN

                                 EXERCISE NOTICE

Stanford Microdevices, Inc.
522 Almanor Avenue
Sunnyvale, CA 94086

Attention:  Secretary

        1. Exercise of Option. Effective as of today, ___________, 20__, the
undersigned ("Optionee") hereby elects to exercise Optionee's option to purchase
_________ shares of Common Stock (the "Shares") of Stanford Microdevices, Inc.
(the "Company") under and pursuant to the 1998 Stock Plan (the "Plan") and the
Stock Option Agreement dated ________, 20 (the ------ "Option Agreement").

        2. Delivery of Payment. Purchaser herewith delivers to the Company the
full purchase price of the Shares, as set forth in the Option Agreement.

        3. Representations of Optionee. Optionee acknowledges that Optionee has
received, read and understood the Plan and the Option Agreement and agrees to
abide by and be bound by their terms and conditions.

        4. Rights as Shareholder. Until the issuance of the Shares (as evidenced
by the appropriate entry on the books of the Company or of a duly authorized
transfer agent of the Company), no right to vote or receive dividends or any
other rights as a shareholder shall exist with respect to the Shares,
notwithstanding the exercise of the Option. The Shares shall be issued to the
Optionee as soon as practicable after the Option is exercised. No adjustment
shall be made for a dividend or other right for which the record date is prior
to the date of issuance except as provided in Section 12 of the Plan.

        5. Company's Right of First Refusal. Before any Shares held by Optionee
or any transferee (either being sometimes referred to herein as the "Holder")
may be sold or otherwise transferred (including transfer by gift or operation of
law), the Company or its assignee(s) shall have a right of first refusal to
purchase the Shares on the terms and conditions set forth in this Section (the
"Right of First Refusal").

           (a) Notice of Proposed Transfer. The Holder of the Shares shall
deliver to the Company a written notice (the "Notice") stating: (i) the Holder's
bona fide intention to sell or otherwise transfer such Shares; (ii) the name of
each proposed purchaser or other transferee ("Proposed Transferee"); (iii) the
number of Shares to be transferred to each Proposed Transferee; and (iv) the
bona fide cash price or other consideration for which the Holder proposes to
transfer the

<PAGE>   22

Shares (the "Offered Price"), and the Holder shall offer the Shares at the
Offered Price to the Company or its assignee(s).

           (b) Exercise of Right of First Refusal. At any time within thirty
(30) days after receipt of the Notice, the Company and/or its assignee(s) may,
by giving written notice to the Holder, elect to purchase all, but not less than
all, of the Shares proposed to be transferred to any one or more of the Proposed
Transferees, at the purchase price determined in accordance with subsection (c)
below.

           (c) Purchase Price. The purchase price ("Purchase Price") for the
Shares purchased by the Company or its assignee(s) under this Section shall be
the Offered Price. If the Offered Price includes consideration other than cash,
the cash equivalent value of the non-cash consideration shall be determined by
the Board of Directors of the Company in good faith.

           (d) Payment. Payment of the Purchase Price shall be made, at the
option of the Company or its assignee(s), in cash (by check), by cancellation of
all or a portion of any outstanding indebtedness of the Holder to the Company
(or, in the case of repurchase by an assignee, to the assignee), or by any
combination thereof within 30 days after receipt of the Notice or in the manner
and at the times set forth in the Notice.

           (e) Holder's Right to Transfer. If all of the Shares proposed in the
Notice to be transferred to a given Proposed Transferee are not purchased by the
Company and/or its assignee(s) as provided in this Section, then the Holder may
sell or otherwise transfer such Shares to that Proposed Transferee at the
Offered Price or at a higher price, provided that such sale or other transfer is
consummated within 120 days after the date of the Notice, that any such sale or
other transfer is effected in accordance with any applicable securities laws and
that the Proposed Transferee agrees in writing that the provisions of this
Section shall continue to apply to the Shares in the hands of such Proposed
Transferee. If the Shares described in the Notice are not transferred to the
Proposed Transferee within such period, a new Notice shall be given to the
Company, and the Company and/or its assignees shall again be offered the Right
of First Refusal before any Shares held by the Holder may be sold or otherwise
transferred.

           (f) Exception for Certain Family Transfers. Notwithstanding anything
to the contrary contained in this Section, the transfer of any or all of the
Shares during the Optionee's lifetime or on the Optionee's death by will or
intestacy to the Optionee's immediate family or a trust for the benefit of the
Optionee's immediate family shall be exempt from the provisions of this Section.
"Immediate Family" as used herein shall mean the Optionee's spouse, lineal
descendant or antecedent, father, mother, brother or sister. In such case, the
transferee or other recipient shall receive and hold the Shares so transferred
subject to the provisions of this Section, and there shall be no further
transfer of such Shares except in accordance with the terms of this Section.

           (g) Termination of Right of First Refusal. The Right of First Refusal
shall terminate as to any Shares upon the first sale of Common Stock of the
Company to the general public pursuant to a registration statement filed with
and declared effective by the Securities and Exchange Commission under the
Securities Act of 1933, as amended.

                                      -2-
<PAGE>   23

        6. Tax Consultation. Optionee understands that Optionee may suffer
adverse tax consequences as a result of Optionee's purchase or disposition of
the Shares. Optionee represents that Optionee has consulted with any tax
consultants Optionee deems advisable in connection with the purchase or
disposition of the Shares and that Optionee is not relying on the Company for
any tax advice.

        7. Restrictive Legends and Stop-Transfer Orders.

           (a) Legends. Optionee understands and agrees that the Company shall
cause the legends set forth below or legends substantially equivalent thereto,
to be placed upon any certificate(s) evidencing ownership of the Shares together
with any other legends that may be required by the Company or by state or
federal securities laws:

        THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE
        SECURITIES ACT OF 1933 (THE "ACT") AND MAY NOT BE OFFERED, SOLD OR
        OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL
        REGISTERED UNDER THE ACT OR, IN THE OPINION OF COMPANY COUNSEL
        SATISFACTORY TO THE ISSUER OF THESE SECURITIES, SUCH OFFER, SALE OR
        TRANSFER, PLEDGE OR HYPOTHECATION IS IN COMPLIANCE THEREWITH.

        THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN
        RESTRICTIONS ON TRANSFER AND A RIGHT OF FIRST REFUSAL HELD BY THE ISSUER
        OR ITS ASSIGNEE(S) AS SET FORTH IN THE EXERCISE NOTICE BETWEEN THE
        ISSUER AND THE ORIGINAL HOLDER OF THESE SHARES, A COPY OF WHICH MAY BE
        OBTAINED AT THE PRINCIPAL OFFICE OF THE ISSUER. SUCH TRANSFER
        RESTRICTIONS AND RIGHT OF FIRST REFUSAL ARE BINDING ON TRANSFEREES OF
        THESE SHARES.

           (b) Stop-Transfer Notices. Optionee agrees that, in order to ensure
compliance with the restrictions referred to herein, the Company may issue
appropriate "stop transfer" instructions to its transfer agent, if any, and
that, if the Company transfers its own securities, it may make appropriate
notations to the same effect in its own records.

           (c) Refusal to Transfer. The Company shall not be required (i) to
transfer on its books any Shares that have been sold or otherwise transferred in
violation of any of the provisions of this Agreement or (ii) to treat as owner
of such Shares or to accord the right to vote or pay dividends to any purchaser
or other transferee to whom such Shares shall have been so transferred.

        8. Successors and Assigns. The Company may assign any of its rights
under this Agreement to single or multiple assignees, and this Agreement shall
inure to the benefit of the successors and assigns of the Company. Subject to
the restrictions on transfer herein set forth, this Agreement shall be binding
upon Optionee and his or her heirs, executors, administrators, successors and
assigns.

                                      -3-
<PAGE>   24

        9. Interpretation. Any dispute regarding the interpretation of this
Agreement shall be submitted by Optionee or by the Company forthwith to the
Administrator which shall review such dispute at its next regular meeting. The
resolution of such a dispute by the Administrator shall be final and binding on
all parties.

        10. Governing Law; Severability. This Agreement is governed by the
internal substantive laws but not the choice of law rules, of the State of
California.

        11. Entire Agreement. The Plan and Option Agreement are incorporated
herein by reference. This Agreement, the Plan, the Option Agreement and the
Investment Representation Statement constitute the entire agreement of the
parties with respect to the subject matter hereof and supersede in their
entirety all prior undertakings and agreements of the Company and Optionee with
respect to the subject matter hereof, and may not be modified adversely to the
Optionee's interest except by means of a writing signed by the Company and
Optionee.

Submitted by:Accepted by:

OPTIONEE:                                STANFORD MICRODEVICES, INC.

                                         By:
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Signature
                                         Name:
                                              ----------------------------

------------------------------
                                         Title:
                                               ---------------------------

Address:                                 Address:

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------------------------                 ------------------------

                                         ------------------------------
                                         Date Received

                                      -4-
<PAGE>   25

                                    EXHIBIT B

                       INVESTMENT REPRESENTATION STATEMENT

OPTIONEE:

COMPANY:              STANFORD MICRODEVICES, INC.

SECURITY:             COMMON STOCK

AMOUNT:

DATE:

In connection with the purchase of the above-listed Securities, the undersigned
Optionee represents to the Company the following:

        (a) Optionee is aware of the Company's business affairs and financial
condition and has acquired sufficient information about the Company to reach an
informed and knowledgeable decision to acquire the Securities. Optionee is
acquiring these Securities for investment for Optionee's own account only and
not with a view to, or for resale in connection with, any "distribution" thereof
within the meaning of the Securities Act of 1933, as amended (the "Securities
Act").

        (b) Optionee acknowledges and understands that the Securities constitute
"restricted securities" under the Securities Act and have not been registered
under the Securities Act in reliance upon a specific exemption therefrom, which
exemption depends upon, among other things, the bona fide nature of Optionee's
investment intent as expressed herein. In this connection, Optionee understands
that, in the view of the Securities and Exchange Commission, the statutory basis
for such exemption may be unavailable if Optionee's representation was
predicated solely upon a present intention to hold these Securities for the
minimum capital gains period specified under tax statutes, for a deferred sale,
for or until an increase or decrease in the market price of the Securities, or
for a period of one year or any other fixed period in the future. Optionee
further understands that the Securities must be held indefinitely unless they
are subsequently registered under the Securities Act or an exemption from such
registration is available. Optionee further acknowledges and understands that
the Company is under no obligation to register the Securities. Optionee
understands that the certificate evidencing the Securities will be imprinted
with a legend which prohibits the transfer of the Securities unless they are
registered or such registration is not required in the opinion of counsel
satisfactory to the Company, a legend prohibiting their transfer without the
consent of the Commissioner of Corporations of the State of California and any
other legend required under applicable state securities laws.

                                      -2-
<PAGE>   26

        (c) Optionee is familiar with the provisions of Rule 701 and Rule 144,
each promulgated under the Securities Act, which, in substance, permit limited
public resale of "restricted securities" acquired, directly or indirectly from
the issuer thereof, in a non-public offering subject to the satisfaction of
certain conditions. Rule 701 provides that if the issuer qualifies under Rule
701 at the time of the grant of the Option to the Optionee, the exercise will be
exempt from registration under the Securities Act. In the event the Company
becomes subject to the reporting requirements of Section 13 or 15(d) of the
Securities Exchange Act of 1934, ninety (90) days thereafter (or such longer
period as any market stand-off agreement may require) the Securities exempt
under Rule 701 may be resold, subject to the satisfaction of certain of the
conditions specified by Rule 144, including: (1) the resale being made through a
broker in an unsolicited "broker's transaction" or in transactions directly with
a market maker (as said term is defined under the Securities Exchange Act of
1934); and, in the case of an affiliate, (2) the availability of certain public
information about the Company, (3) the amount of Securities being sold during
any three month period not exceeding the limitations specified in Rule 144(e),
and (4) the timely filing of a Form 144, if applicable.

In the event that the Company does not qualify under Rule 701 at the time of
grant of the Option, then the Securities may be resold in certain limited
circumstances subject to the provisions of Rule 144, which requires the resale
to occur not less than one year after the later of the date the Securities were
sold by the Company or the date the Securities were sold by an affiliate of the
Company, within the meaning of Rule 144; and, in the case of acquisition of the
Securities by an affiliate, or by a non-affiliate who subsequently holds the
Securities less than two years, the satisfaction of the conditions set forth in
sections (1), (2), (3) and (4) of the paragraph immediately above.

        (d) Optionee further understands that in the event all of the applicable
requirements of Rule 701 or 144 are not satisfied, registration under the
Securities Act, compliance with Regulation A, or some other registration
exemption will be required; and that, notwithstanding the fact that Rules 144
and 701 are not exclusive, the Staff of the Securities and Exchange Commission
has expressed its opinion that persons proposing to sell private placement
securities other than in a registered offering and otherwise than pursuant to
Rules 144 or 701 will have a substantial burden of proof in establishing that an
exemption from registration is available for such offers or sales, and that such
persons and their respective brokers who participate in such transactions do so
at their own risk. Optionee understands that no assurances can be given that any
such other registration exemption will be available in such event.

        (e) Optionee understands that the certificate evidencing the Securities
will be imprinted with a legend which prohibits the transfer of the Securities
without the consent of the Commissioner of Corporations of California. Optionee
has read the applicable Commissioner's Rules with respect to such restriction, a
copy of which is attached.

                                        Signature of Optionee:

                                        ----------------------------------------

                                        Date:__________________________, 20_____

                                   -2-

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