Document:

Exhibit
10.1

QUICKLOGIC
CORPORATION

1999
STOCK PLAN

The
following constitutes the provisions of the QuickLogic Corporation 1999 Stock
Plan, as amended and restated effective as of August 29, 2007.

1.                                       Purposes of the
Plan.  The purposes of this 1999 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 and Restricted Stock
Units may also be granted under the Plan.

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

(a)                                  “Administrator”
means the Board or any Committee 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 this Plan 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, Stock Purchase Rights, Restricted Stock or Restricted Stock Units 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 or other individuals satisfying Applicable Laws
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 QuickLogic Corporation, a Delaware corporation.

(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 Global Market or The
Nasdaq Capital 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
on or before the day 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 on or before 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)                                 “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.

(p)                                 “Nonstatutory
Stock Option” means an Option not intended to qualify as an Incentive Stock
Option.

(q)                                 “Notice
of Grant” means a written or electronic notice evidencing certain terms and
conditions of an individual Option, Stock Purchase Right or Restricted Stock
Unit grant.  The Notice of Grant is part
of the Option Agreement, the Restricted Stock Purchase Agreement or the
Restricted Stock Unit Agreement.

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(r)                                    “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.

(s)                                  “Option”
means a stock option granted pursuant to the Plan.

(t)                                    “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 and the Notice of Grant.

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

(v)                                 “Optioned
Stock” means the Common Stock subject to an Option, Stock Purchase Right or
Restricted Stock Unit.

(w)                               “Optionee”
means the holder of an outstanding Option, Stock Purchase Right, Restricted
Stock award or Restricted Stock Unit granted under the Plan.

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

(y)                                 “Plan”
means this QuickLogic Corporation 1999 Stock Plan.

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

(aa)                            “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.

(bb)                          “Restricted
Stock Unit” means a bookkeeping entry representing an amount equal to the
Fair Market Value of one Share, granted pursuant to Section 12.  Each Restricted Stock Unit represents an
unfunded and unsecured obligation of the Company.

(cc)                            “Restricted
Stock Unit Agreement” means a written agreement between the Company and the
Optionee evidencing the terms and restrictions applying to an individual grant
of Restricted Stock Units.  The
Restricted Stock Unit 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.

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

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(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 and a Restricted
Stock Purchase Agreement.

(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
which may be optioned and sold under the Plan is (i) 5,000,000 Shares,
including any Shares which have been reserved but unissued under the Company’s
1989 Stock Option Plan (as amended) (the “1989 Plan”) as of the IPO Effective
Date and (ii) any Shares returned to the 1989 Plan as a result of termination
of options under the 1989 Plan.  In
addition, an annual increase shall be added to the Plan on the first day of the
Company’s fiscal year beginning in 2000 equal to the lesser of (i) 5,000,000
Shares, (ii) five-percent (5%) 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 (a “Right”) expires or becomes unexercisable without having been
exercised in full, or is surrendered pursuant to an Option Exchange Program, or
Restricted Stock Units are forfeited to the Company due to failure to vest, the
unpurchased or unissued 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 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 or are forfeited to the Company, such Shares shall become available for
future grant under the Plan.

4.                                       Administration
of the Plan.

(a)                                  Procedure.

(i)                                     Multiple
Administrative Bodies.  The Plan may
be administered by different Committees with respect to different groups of
Service Providers.

(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.

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(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.

(v)                                 Delegation
of Authority for Day-to-Day Administration. 
Except to the extent prohibited by Applicable Laws, the Administrator
may delegate to one or more individuals the day-to-day administration of the
Plan and any of the functions assigned to it in this Plan.  Such delegation may be revoked at any time.

(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, Stock Purchase Rights and
Restricted Stock Units may be granted hereunder;

(iii)                               to determine the number
of shares of Common Stock to be covered by each Option, Stock Purchase Right
and Restricted Stock Unit 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, Stock Purchase Right, Restricted Stock or Restricted Stock
Unit relating thereto 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
(which may be based on performance criteria), any vesting acceleration or
waiver of forfeiture restrictions, and any restriction or limitation regarding
any Option, Stock Purchase Right, Restricted Stock or Restricted Stock Unit 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;

(vii)                           to
institute an Option Exchange Program;

(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, Stock Purchase Right, Restricted Stock or
Restricted Stock Unit (subject to Section 16(c) of the Plan), including the
discretionary 

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authority to extend the post-termination
exercisability period of Options longer than is otherwise provided for in the
Plan;

(xi)                                to
allow Optionees to satisfy withholding tax, Fringe Benefits Tax or National
Insurance Contributions tax obligations by electing to have the Company
withhold from the Shares to be issued upon exercise of an Option or Stock
Purchase Right or upon vesting of Restricted Stock or a Restricted Stock Unit
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 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, Stock Purchase Right or Restricted
Stock Unit previously granted by the Administrator; and

(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, Stock Purchase
Rights, Restricted Stock or Restricted Stock Units.

5.                                       Eligibility.  Nonstatutory Stock Options, Stock Purchase
Rights and Restricted Stock Units 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, Stock Purchase Right, Restricted Stock or Restricted
Stock Unit award 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.

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(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.

(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 Plan shall become effective upon its adoption by the Board.  It shall continue in effect for a term of ten
(10) years 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.

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(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.

(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 which 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)                               other
Shares which 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;

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

(v)                                 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;

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

(vii)                           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.  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 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 

 8
 

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 or Provision of Notice of Employment
Termination.  If an Optionee (i)
ceases to provide ongoing service as a Service Provider (for any reason and
regardless of any appropriate court finding such termination unfair or
irregular on any basis whatsoever), other than upon the Optionee’s death or
Disability, or (ii) is provided with notice of termination of employment (for
any reason and regardless of any appropriate court finding the related
termination unfair or irregular on any basis whatsoever) and ceases to provide
ongoing service during the notice period, 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 earlier of the date of such
cessation as a Service Provider or the last date of ongoing service after
receiving a notice of termination of employment or such later date as required
by Applicable Laws (the earlier of these dates or such later date required by
Applicable Laws is referred to herein as the “Vesting Cessation Date”, as
reasonably fixed and determined by the Administrator), 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 Vesting Cessation Date. 
If, on the Vesting Cessation Date, 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 (unless the Administrator determines otherwise).  At the sole discretion of Company, subject to
Applicable Laws, Grantee may be paid a lump sum for their cash compensation in
lieu of notice.  If, after the Vesting
Cessation Date, 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 

 9
 

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.

(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 and after the Vesting Cessation
Date or upon termination of the purchaser’s service with the Company due to
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.                                 Restricted
Stock Units.

(a)                                  Grant.  Restricted Stock Units may be granted at any
time and from time to time as determined by the Administrator.  After the Administrator determines that it
will grant Restricted Stock Units under the Plan, it shall advise the Optionee
in a Restricted Stock Unit Agreement of the terms, conditions, and restrictions
related to the grant, including the number of Restricted Stock Units.

 10
 

(b)                                 Vesting
Criteria and Other Terms.  The
Administrator shall set vesting criteria in its discretion, which, depending on
the extent to which the criteria are met, will determine the number of
Restricted Stock Units that will be paid out to the Optionee.  The Administrator may set vesting criteria
based upon the achievement of Company wide, business unit, or individual goals
(including, but not limited to, continued employment), or any other basis
determined by the Administrator in its discretion.

(c)                                  Earning
Restricted Stock Units.  Upon meeting
the applicable vesting criteria, the Optionee shall be entitled to receive a
payout as determined by the Administrator. 
Notwithstanding the foregoing, at any time after the grant of Restricted
Stock Units, the Administrator, in its sole discretion, may reduce or waive any
vesting criteria that must be met to receive a payout.

(d)                                 Form
and Timing of Payment.  Payment of
earned Restricted Stock Units shall be made as soon as practicable after the
date(s) determined by the Administrator and set forth in the Restricted Stock
Unit Agreement.  The Administrator, in
its sole discretion, may only settle earned Restricted Stock Units in cash,
Shares, or a combination of both.

(e)                                  Cancellation.  On the date set forth in the Restricted Stock
Unit Agreement, all unearned Restricted Stock Units shall be forfeited to the
Company.

13.                                 Non-Transferability
of Options, Stock Purchase Rights, Restricted Stock and Restricted Stock Units.  Unless determined otherwise by the
Administrator, an Option, Stock Purchase Right, Restricted Stock or Restricted
Stock Unit award 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, Stock Purchase Right, Restricted Stock or Restricted Stock Unit award
transferable, such Option, Stock Purchase Right, Restricted Stock or Restricted
Stock Unit award shall contain such additional terms and conditions as the
Administrator deems appropriate.

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, Stock Purchase Right,
Restricted Stock and Restricted Stock Unit award, and the number of shares of
Common Stock which have been authorized for issuance under the Plan but as to
which no Options, Stock Purchase Rights or Restricted Stock Units have yet been
granted or which have been returned to the Plan upon cancellation, expiration,
repurchase or forfeiture of an Option, Stock Purchase Right, Restricted Stock
or Restricted Stock Unit award, as well as the price per share of Common Stock
covered by each such outstanding Option, Stock Purchase Right or Restricted
Stock Unit, 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 

 11
 

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, Stock Purchase Right,
Restricted Stock or Restricted Stock Unit award.

(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 Stock Purchase Right or 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, or that all Restricted Stock Units shall vest, 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, or, with respect to Restricted Stock, all
restrictions have not lapsed, or, with respect to a Restricted Stock Unit, all
units have not vested, an Option, Stock Purchase Right or Restricted Stock Unit
will terminate immediately prior to the consummation of such proposed action.

(c)                                  Merger
or Asset Sale.

(i)                                     Stock
Options and Stock Purchase Rights. 
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. 
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 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
such notice, and the Option or Stock Purchase Right shall terminate upon the
expiration of such period, or such earlier date as specified in the Stock
Option Agreement or Restricted Stock Purchase Agreement.  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 

 12
 

fair market value to the per share consideration
received by holders of Common Stock in the merger or sale of assets.

(ii)                                  Restricted
Stock and Restricted Stock Units.  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
Restricted Stock and Restricted Stock Unit award shall be assumed or an
equivalent Restricted Stock or Restricted Stock Unit award substituted by the
successor corporation or a Parent or Subsidiary of the successor
corporation.  In the event that the
successor corporation refuses to assume or substitute for the Restricted Stock
or Restricted Stock Unit award, the Optionee shall fully vest in the Restricted
Stock Unit, including shares which would not otherwise be vested, and all
restrictions on Restricted Stock will lapse immediately prior to the closing
date of the transaction.  For the
purposes of this paragraph, a Restricted Stock or Restricted Stock Unit award
shall be considered assumed if, following the merger or sale of assets, the
award confers the right to purchase or receive, for each Share subject to
the Restricted Stock or Restricted Stock Unit award 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, for each Share subject to the Restricted
Stock or Restricted Stock Unit award, 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, Stock Purchase Right or Restricted Stock Unit shall be, for all
purposes, the date on which the Administrator makes the determination granting
such Option, Stock Purchase Right or Restricted Stock Unit, 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, Stock Purchase Rights,
Restricted Stock and Restricted Stock Units granted under the Plan prior to the
date of such termination or Shares issued under the Plan.

 13
 

The Company will
administer the Plan from the United States of America, and any disputes will be
settled in the U.S. according to U.S. law. 
This Plan and all awards are governed by the internal substantive laws,
but not the choice of law principles, of the State of California, United States
of America.

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 or
pursuant to the vesting of a Restricted Stock or Restricted Stock Unit award
unless the exercise of such Option or Stock Purchase Right or the vesting of a
Restricted Stock or Restricted Stock Unit award 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.

(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, sell
or release from escrow 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.

 14Exhibit
10.2

QUICKLOGIC CORPORATION

1999 STOCK PLAN

NOTICE OF GRANT OF
RESTRICTED STOCK UNITS

Unless otherwise defined
herein, the terms defined in the 1999 Stock Plan (the “Plan”) will have the
same defined meanings in this Notice of Grant of Restricted Stock Units (the “Notice
of Grant”) and the Restricted Stock Unit Agreement, attached hereto as Exhibit
A (the “Restricted Stock Unit Agreement” or “Agreement”).

	
  Grantee:

  	
   

  	
   

  
	
   

  	
   

  
	
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

Grantee has been granted
the right to receive an award of Restricted Stock Units, subject to the terms
and conditions of the Plan and the Agreement, as follows:

	
  Grant Number

  	
   

  	
   

  
	
   

  	
   

  
	
  Date of Grant

  	
   

  	
   

  
	
   

  	
   

  
	
  Vesting Type

  	
  o
  Performance or o
  Service

  
	
   

  	
   

  
	
  Vesting Commencement Date

  	
   

  	
   

  
	
   

  	
   

  
	
  Number of Restricted
  Stock Units

  	
   

  	
   

  
						

 

Vesting Schedule:

Grantee will generally be taxed when the Restricted Stock Units (“RSUs”)
vest and Shares are delivered.  The RSUs
are intended (but not guaranteed) to vest in an open trading window under the
Company’s insider trading policy.  This
should help enable the Grantee to sell a portion of the delivered shares to
cover the Grantee’s tax obligations.  If
the trading window is closed on a scheduled vesting date, vesting of the RSUs
will be delayed until the trading window is open. A Grantee vests in the RSU in
accordance with the following [Service Vesting] [Performance Vesting] schedule,
so long as a Vesting Cessation Date (as defined herein) has not yet occurred:

[Service Vesting:

This RSU will vest, in whole or in part, according to the following
vesting schedule:

1)             Scheduled
quarterly vesting over four years with a one-year cliff.  25% of the RSUs will vest on the first open
trading day under the Company’s insider trading policy occurring on or after the
one year anniversary of the Vesting Commencement Date; thereafter 1/16 of the
RSUs will vest on the first open trading day under the Company’s insider
trading policy on or after each 

 1
 

successive
quarter following the first anniversary, so as to be 100% vested on the first
open trading day on or after the fourth anniversary of the Vesting Commencement
Date;

2)             Scheduled
bi-annual vesting over 15 quarters with a one-year cliff.  25% of the RSUs will vest on the first open
trading day under the Company’s insider trading policy occurring on or after the
one year anniversary of the Vesting Commencement Date; 1/8 of the RSUs will
vest on the first open trading day under the Company’s insider trading policy
on or after the date which is 15 months from the Vesting Commencement Date;
thereafter 1/8 of the RSUs will vest on the first open trading day under the
Company’s insider trading policy on or after each successive six months, so as
to be 100% vested on the first open trading day on or after the date which is
15 quarters from the Vesting Commencement Date.

3)             Scheduled
annual vesting over four years.  25% of the RSUs will vest each year on the
first open trading day under the Company’s insider trading policy on or after the anniversary of
the Vesting Commencement Date, so as to be 100% vested on the first open
trading day on or after the fourth anniversary of the Vesting Commencement
Date;

4)             Scheduled
quarterly vesting over one year.  25% of the RSUs are scheduled to vest on the
first open trading day under the Company’s insider trading policy on or after
each quarter following the Vesting Commencement Date, so as to be 100% vested
on the first open trading day on or after the first anniversary of the Vesting
Commencement Date;

5)             The RSUs are vested in full upon grant; or

6)             Other:                                                                     

Example:

Grantee Montana is awarded RSUs to acquire 160 Shares
on 2/10/06 under Service Vesting alternative 1. 
If the trading window under the Company’s insider trading policy is open
on 2/10/07, 5/10/07 and 8/10/07, Grantee Montana vests as to 40 Shares on
2/10/07, 10 Shares on 5/10/07 and 10 Shares on 8/10/07.

If the trading window is closed on 3/1/07 and reopens
on 8/20/07, Grantee Montana vests as to 40 shares on 2/10/07 and 20 Shares on
8/20/07.]

[Performance Vesting:

This RSU vests based on achieving the following goal:

The Company/business unit/Grantee will achieve                     
by              
of 20   , as determined by the Administrator, in its sole discretion (the “Grant Goal”).

The RSU vests as follows based upon the following performance relative
to the Grant Goal:

 2
 

(a)           100% of the RSU vests if the Grant Goal is
achieved;

(b)           If the Grant Goal is not achieved,      %
of the RSU will vest, but only if a threshold percentage of     %
of the Grant Goal is achieved (the RSU will not vest at all if the threshold
percentage is not achieved);

(c)           At a performance level between the threshold
percentage and full achievement of the Grant Goal, the RSU vests on a
proportionate, straight-line basis;

(d)           Any fractional RSU vesting is rounded down to
the nearest whole Share;

(e)           In no event will the RSU vest if a Vesting
Cessation Date, as defined herein, has occurred prior to the vesting date; and

(f)            The Administrator, in its sole discretion,
will determine the extent to which the Grant Goal has been achieved.  This determination will be made, to the
extent practicable, no later than the Company’s first fiscal quarter following
the end of the full performance period to which the Grant Goal relates, or, if
earlier, the first fiscal quarter following the fiscal quarter in which 100% of
the Grant Goal has been achieved.

Once the Administrator, in its discretion, determines the percentage
(if any) of the RSU that will be scheduled to vest, the actual vesting occurs
later over five substantially equal installments during an open trading
window.  Vesting begins on the next
Wednesday in an open trading window following the date of the Administrator’s
determination, and continues for the four following Wednesdays to occur during
an open trading window (each such Wednesday an “Actual Vesting Date”).

Example I:

On January 1, 2008, Grantee Montana is granted an RSU covering 500
Shares.  The RSU Grant Goal is for the
Company to achieve $10 million of quarterly revenue, determined in accordance
with generally accepted accounting principles (“GAAP”), for a specific group of
products in any quarter in the two-year period ending with the Company’s fourth
fiscal quarter of 2009.  If the Grant
Goal is achieved or exceeded, 100% of the RSU will be scheduled to vest.  If a threshold percentage of 70% of the Grant
Goal, or $7 million in quarterly GAAP revenue for these products, is achieved
during the performance period, the RSU will be scheduled to vest as to only 40%
of the covered units.  If the quarterly
GAAP revenue during the Performance Period never reaches $7 million, none of
the RSU will be scheduled to vest and the RSU will terminate in its entirety.

In this example, the Company achieves $8.5M and $8M of quarterly GAAP
revenue for the specified products in the Company’s third and fourth fiscal
quarters of 2009, respectively, but does not reach $7 million in quarterly GAAP
revenue in any of the other six quarters during the performance period.  In the Company’s first fiscal quarter in
2010, the Administrator determines the percentage of the RSU scheduled to vest
based upon the highest quarterly level of achievement, 

 3
 

$8.5M
which is 85% of the Grant Goal.  Total
scheduled vesting is 70% of the RSU Shares (350 Shares) based on 85%
achievement of the Grant Goal.  Following
the Administrator’s determination, 14% of Grantee Montana’s RSU Shares (70
Shares) vest on the next Wednesday, and each of the four following Wednesdays,
to occur during an open trading window under the Company’s insider trading
policy, so long as there has been no Vesting Cessation Date (as defined herein)
prior to any vesting date.

Example II:

The same facts apply, except that the Company achieves $10.5 million of
quarterly GAAP revenue for the specified products in the second quarter of
2009.  Since the full Grant Goal was
achieved, the Administrator makes the determination that 100% of the RSU Shares
will be scheduled to vest.  This
determination is made no later than the end of the third fiscal quarter in
2009, to the extent practicable. 
Following the Administrator’s determination, 20% of Grantee Montana’s
RSU Shares (100 Shares) vest on the next Wednesday, and each of the four
following Wednesdays, to occur during an open trading window under the Company’s
insider trading policy, so long as there has been no Vesting Cessation Date (as
defined herein) prior to any vesting date.]

Termination
of Relationship as a Service Provider or Provision of Notice of Employment
Termination; Vesting Cessation Date.  If a Grantee (i) ceases to provide ongoing
service as a Service Provider (for any reason and regardless of any appropriate
court finding such termination unfair or irregular on any basis whatsoever), or
(ii) is provided with notice of termination of employment (for any reason and
regardless of any appropriate court finding the related termination unfair or
irregular on any basis whatsoever) and ceases to provide ongoing service during
the notice period, the Grantee will only vest in those shares which vest (a) on
or before the earlier of the date of such cessation as a Service Provider or
the last date of ongoing service after receiving a notice of termination of
employment, or (b) such later date as required by Applicable Law (the earlier
of these dates or such later date required by Applicable Law is referred to
herein as the “Vesting Cessation Date,” as reasonably fixed and determined by
the Administrator).  At the sole
discretion of Company, subject to Applicable Law, Grantee may be paid a lump
sum for their cash compensation in lieu of notice.  RSUs which do not vest by the Vesting
Cessation Date shall automatically become void and without further effect.  In such event, the underlying Shares shall be
returned to the Plan.

[Term of Service Vesting RSUs. 
Service vesting RSUs shall automatically expire, to the extent then
unvested, on the Vesting Cessation Date. 
RSUs which expire shall
automatically become void and without further effect.  In such event, the underlying Shares shall be
returned to the Plan. The maximum term of a RSU is ten (10) years.]

[Term of Performance Vesting RSUs. 
Performance vesting RSUs shall automatically expire on the earlier of
the Vesting Cessation Date or the date upon which the Administrator determines
they shall not be scheduled to vest. 
RSUs which expire shall automatically become void and without further
effect.  In such event, the underlying Shares
shall be returned to the Plan. The maximum term of a RSU is ten (10) years.]

The
Restricted Stock Unit Agreement included as Exhibit A and the Plan are
incorporated herein by reference.  The
Plan, Restricted Stock Unit Agreement and this Notice of Grant constitute 

 4
 

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 Grantee with respect to the subject matter hereof, and may not
be modified adversely to the Grantee’s interest except by means of a writing
signed by the Company and Grantee.  The
Company will administer the Plan from the United States of America, and any
disputes will be settled in the U.S. according to U.S. law.  This Notice of Grant, Restricted Stock Unit
Agreement, Plan and all awards are governed by the internal substantive laws,
but not the choice of law principles, of the State of California, United States
of America.

By Grantee’s signature,
Grantee agrees that this award is granted under and governed by the terms and
conditions of the Plan, the Restricted Stock Unit Agreement and this Notice of
Grant.  Grantee has reviewed the Plan,
the Restricted Stock Unit Agreement and this Notice of Grant in their entirety,
has had an opportunity to obtain the advice of counsel prior to executing this
Agreement and fully understands all provisions of the Plan, the Restricted
Stock Unit Agreement and this Notice of Grant. 
Grantee hereby agrees to accept as binding, conclusive and final all
decisions or interpretations of the Administrator upon any questions relating
to the Plan, the Restricted Stock Unit Agreement and this Notice of Grant.

	
  GRANTEE

  	
  QUICKLOGIC CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
  Signature

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
  Print Name

  	
   

  
	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
  Date:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  GRANTEE ADDRESS:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  BENEFICIARY:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Print Name

  	
   

  
	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
   

  
							

 

Consent of spouse required if beneficiary is someone other
than spouse:

 5
 

 

	
  Signature:

  	
   

  	
   

  
	
   

  
	
  Print Name:

  	
   

  	
   

  
	
   

  
	
  Date:

  	
   

  	
   

  
					

 

Please
return this Notice of Grant of Restricted Stock Units to the Stock
Administrator of the Company.

(Form
of Notice as of August 2007)

 6
 

EXHIBIT A

RESTRICTED STOCK UNIT
AGREEMENT

1.             Grant of Restricted Stock Units.  The
Company hereby grants to the Grantee named in the Notice of Grant under the
Plan an award of Restricted Stock Units (“RSUs”), subject to all of the terms
and conditions in this Restricted Stock Unit Agreement and the Plan, which is
incorporated herein by reference. 
Subject to Section 16(c) of the Plan, in the event of a conflict between
the terms and conditions of the Plan and the terms and conditions of this
Agreement, the terms and conditions of the Plan will prevail.

2.             Company’s Obligation.  Each
RSU represents the right to receive a Share in accordance with the vesting
schedule in the attached Notice of Grant. 
Unless and until the RSUs vest, the Grantee will have no right to
receive Shares underlying such RSUs. 
Prior to actual distribution of Shares pursuant to any vested RSUs, such
RSUs will represent an unsecured obligation of the Company, payable (if at all)
only from the general assets of the Company.

3.             Vesting Schedule. 
Subject to paragraph 4 of this Agreement, the RSUs awarded by this
Agreement will vest and all restrictions lapse according to the vesting
schedule specified in the Notice of Grant.

4.             Forfeiture upon Termination as a Service
Provider.  Notwithstanding any contrary provision of
this Agreement or the Notice of Grant, if the RSU expires for any or no reason
prior to vesting, the unvested RSUs awarded by the Notice of Grant and this
Agreement will thereupon be forfeited at no cost to the Company.

5.             Payment after Vesting.  Any
RSUs that vest in accordance with paragraph 3 of this Agreement will be paid to
the Grantee (or in the event of the Grantee’s death, to Grantee’s estate) in
Shares, provided that to the extent determined appropriate by the Company, any
federal, state and local withholding taxes, fringe benefit tax (“FBT”) or
National Insurance Contribution (“NIC”) tax with respect to such RSUs will be
paid by the Grantee in the manner allowed by the Company.

6.             Tax
Withholding and Consequences. 
Regardless of any action the Company takes with respect to any or all
income tax, social insurance, payroll tax, or other tax-related withholding, FBT or NIC paid or payable in respect of the grant, vesting, release,
cancellation, transfer of the RSUs or issuance of the related Shares (“Tax-Related
Items”), Grantee acknowledges that the ultimate liability for all Tax-Related
Items legally due by Grantee are and remain Grantee’s responsibility and that
the Company (a) makes no representations or undertakings regarding the
treatment of any Tax-Related Items in connection with any aspect of the grant,
vesting or delivery of RSUs or related Shares, the subsequent sale of Shares
and/or the receipt of any dividends; and (b) does not commit to structure the
terms of a RSU grant to reduce or eliminate Grantee’s liability for Tax-Related
Items.  Set forth below is a brief
summary as of the date of grant of this Restricted Stock Unit Agreement of some
of the United States federal tax consequences of vesting of this RSU and
disposition of the Shares.  THIS SUMMARY
IS NECESSARILY INCOMPLETE, AND THE TAX LAWS AND REGULATIONS ARE SUBJECT TO
CHANGE.

 7
 

As the RSUs vest, Grantee will immediately recognize
compensation income in an amount equal to the Fair Market Value of the vesting
Shares (the “Vest
Date Fair Market Value”) if Grantee is a U.S taxpayer.  If Grantee is a non-U.S. taxpayer, Grantee
will be subject to applicable taxes in Grantee’s jurisdiction.

If Grantee is an Employee or former Employee, the Vest Date Fair Market Value
will be subject to tax withholding by the Company, and the Company will
generally be entitled to a tax deduction in the amount at the time the Grantee
recognizes ordinary income with respect to a Restricted Stock Unit Agreement.

7.             Tax Obligations. 
Grantee agrees to make appropriate arrangements with the Company (or the
Parent or Subsidiary employing or retaining Grantee) in accordance with the
procedures offered by the Company for the satisfaction of all federal, state,
local and foreign income and employment tax withholding requirements, FBT and
NIC applicable to the grant, vesting or issuance of Shares pursuant to an award
of RSUs.  Grantee also agrees to
reimburse or pay the Company (including its subsidiaries) in full, any liability that the Company
incurs towards any FBT or NIC
paid or payable in respect of the grant, vesting, release, cancellation,
transfer or delivery of the RSU or related Shares, within the time and in
the manner prescribed by the
Company.  The Administrator may in
its sole discretion determine amounts and whether the withholding taxes and/or
FBT and/or NIC with respect to such RSUs and related Shares will be paid by
cash, selling a portion of vested shares, electing to
have the Company withhold otherwise deliverable Shares having a value equal to
the minimum amount statutorily required to be withheld, selling a
sufficient number of such Shares otherwise deliverable to Grantee through such
means as the Company may determine in its sole discretion (whether through a
broker or otherwise) having a Fair Market Value equal to the amount required, by directing a portion of the proceeds to the
Company, by payroll withholding, by delivering already vested and owned Shares
to the Company, by delivering net shares, by direct payment from the Grantee to
the Company, by some other method, or by some combination thereof.  Grantee
agrees to execute any additional documents requested by the Company for such
reimbursement of such taxes to the Company.

Grantee grants to the Company the irrevocable
authority, as agent of Grantee and on Grantee’s behalf, to sell or procure the
sale of sufficient Shares subject to this award of RSUs so that the net
proceeds receivable by the Company are as far as possible equal to but not less
than the amount of any withholding tax, FBT or NIC the Grantee is liable for
(including pursuant to the preceding paragraph) and the Company will account to
Grantee for any balance.

Grantee acknowledges and agrees that the Company may refuse to deliver
Shares if Grantee has not made appropriate arrangements with the Company to
satisfy tax withholding requirements, FBT or NIC.

8.             No Guarantee of Continued Service. 
GRANTEE ACKNOWLEDGES AND AGREES THAT THE VESTING OF RSUs PURSUANT TO THE
NOTICE OF GRANT OF RSUs HEREOF IS EARNED ONLY BY CONTINUING SERVICE AS A
SERVICE PROVIDER AT THE WILL OF THE COMPANY (NOT THROUGH THE ACT OF BEING
HIRED).  GRANTEE FURTHER ACKNOWLEDGES AND
AGREES THAT THIS AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREUNDER AND THE
VESTING SCHEDULE SET 

 8
 

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 WILL
NOT INTERFERE WITH GRANTEE’S RIGHT OR THE COMPANY’S RIGHT TO TERMINATE GRANTEE’S
SERVICE PROVIDER STATUS AT ANY TIME, WITH OR WITHOUT CAUSE, EXCEPT AS OTHERWISE
REQUIRED BY APPLICABLE LAW.  ACCORDINGLY,
GRANTEE DOES NOT HAVE ANY ENTITLEMENT TO A RSU IF GRANTEE RESIGNS OR IF THERE
IS A VESTING CESSATION DATE FOR ANY REASON PRIOR TO THE DATE THAT THE RSU VESTS.

9.             Data
Privacy.  By accepting this
Restricted Stock Unit Agreement or any Shares upon vesting thereof, Grantee
explicitly and unambiguously consents to the collection, use and transfer, in
electronic or other form, of Grantee’s personal data as described in this
document by and among, as applicable, the Company, its subsidiaries and
affiliates for the exclusive purpose of implementing, administering and
managing Grantee’s participation in the Plan. 
For the purpose of implementing, administering and managing the Plan,
Grantee understands that the Company holds certain personal information about
Grantee, including, but not limited to, Grantee’s name, home address and
telephone number, date of birth, Tax ID or other identification number, salary,
nationality, job title, any equity or directorships held in the Company,
details of all equity awards or any entitlement to Shares awarded, canceled,
exercised, vested, unvested or outstanding in Grantee’s favor, for the purpose
of implementing, administering and managing the Plan (“Data”).  Grantee understands that Data may be
transferred to any third parties assisting in the implementation,
administration and management of the Plan, that these recipients may be located
in Grantee’s country or elsewhere.  The
Company, as a global company, may transfer Grantee’s personal data to countries
that may not provide an adequate level of protection.  The Company, however, is committed to providing
a suitable and consistent level of protection for Grantee’s personal data
regardless of the country in which it resides. 
Grantee understands that Grantee may request information regarding the
Company’s stock plan administration by contacting Human Resources, the Chief
Financial Officer or their designee. 
Grantee authorizes the recipients to receive, possess, use, retain and
transfer the Data, in electronic or other form, for the purposes of
implementing, administering and managing Grantee’s participation in the Plan,
including any requisite transfer of such Data as may be required to a broker or
other third party with whom Grantee deposits any Shares issued at vesting or
other scheduled payout.  Grantee
understands that Data will be held as long as is necessary to implement,
administer and manage the Plan.  Grantee
understands that Grantee may, at any time, view Data, request additional
information about the storage and processing of Data, require any necessary amendments
to Data or refuse or withdraw the consents herein, in any case without cost, by
contacting in writing Human Resources or the Chief Financial Officer.  Grantee understands, however, that refusing
or withdrawing Grantee’s consent may affect Grantee’s ability to participate in
the Plan.  For more information on the
consequences of Grantee’s refusal to consent or withdrawal of consent, Grantee
understands that he or she may contact Human Resources, the Chief Financial
Officer or their designee.

10.           Electronic Delivery.  The Company
may, in its sole discretion, decide to deliver any documents related to the
award of RSUs or issuance of Shares and participation in the Plan or future
Restricted Stock Unit Agreements that may be awarded under the Plan by
electronic means or to request Grantee’s consent to participate in the Plan by
electronic means.  Grantee hereby
consents to receive such documents by electronic delivery and, if requested, to
agree to participate in the Plan 

 9
 

through an on-line or
electronic system established and maintained by the Company or another third
party designated by the Company.

11.           Payments after Death.  Any
distribution or delivery to be made to the Grantee under this Agreement will,
if the Grantee is then deceased, be made to the administrator or executor of
the Grantee’s estate or, if none, to the persons entitled to received such
distribution or delivery under the Grantee’s will or the laws of descent or
distribution.  Any such recipient  must furnish the Company with (a) written
notice of his or her status as transferee, and (b) evidence satisfactory to the
Company to establish the validity of the transfer and compliance with any laws
or regulations pertaining to said transfer.

12.           Grant is Not Transferable. 
Except to the limited extent provided in paragraph 11 of this
Agreement, this grant and the rights and privileges conferred hereby will not
be transferred, assigned, pledged or hypothecated in any way (whether by
operation of law or otherwise) and will not be subject to sale under execution,
attachment or similar process.  Upon any
attempt to transfer, assign, pledge, hypothecate or otherwise dispose of this
grant, or any right or privilege conferred hereby, or upon any attempted sale
under any execution, attachment or similar process, this grant and the rights and
privileges conferred hereby immediately will become null and void.

13.           Rights as Stockholder. 
Neither the Grantee nor any person claiming under or through the Grantee
will have any of the rights or privileges of a stockholder of the Company in
respect of any Shares deliverable hereunder unless and until certificates
representing such Shares will have been issued, recorded on the records of the
Company or its transfer agents or registrars, and delivered to the Grantee or
Grantee’s broker or had the Shares electronically transferred to Grantee’s
account.

14.           Acknowledgments.  The Grantee expressly acknowledges the
following:

(a)           The
Company (whether or not Grantee’s employer) is granting the award of RSUs.  That the grant of the award, future grants of
awards, and benefits and rights provided under the Plan are at the complete
discretion of the Company and do not constitute regular or periodic payments,
or remuneration under the terms of employment. 
No grant of awards will be deemed to create any obligation to grant any
further awards, whether or not such a reservation is explicitly stated at the
time of such a grant.  The benefits and
rights provided under the Plan are not to be considered part of Grantee’s
salary or total compensation for purposes of determining Grantee’s entitlement
upon termination and will not be included for purposes of calculating any
severance, resignation, termination, redundancy or other end of service
payments, vacation, bonuses, long-term service awards, indemnification, pension
or retirement benefits, life insurance, 401(k) profit sharing or any other
payments, benefits or rights of any kind. 
Grantee waives any and all rights to compensation or damages as a result
of the termination of employment with the Company or its subsidiaries and the
administration of the Plan and this grant for any reason whatsoever insofar as
those rights result or may result from:

(i)            the loss or diminution in value of such
rights under the Plan, or

(ii)           Grantee
ceasing to have any rights under, or ceasing to be entitled to any rights under
the Plan as a result of such termination or administration.

 10
 

(b)           The Company has the right, at any time to amend, suspend or terminate
the Plan.  The Plan will not be deemed to
constitute, and will not be construed by Grantee to constitute, part of the
terms and conditions of employment, and that the Company will not incur any
liability of any kind to Grantee as a result of any change or amendment, or any
cancellation, of the Plan at any time.

(c)           The Grantee’s
employment with the Company and its Subsidiaries is not affected at all by any
award and it is agreed by the Grantee not to create an entitlement and will not
be included in the Grantee’s entitlement at common law for damages during any
reasonable notice period.  Accordingly,
the terms of the Grantee’s employment with the Company and its Subsidiaries
will be determined from time to time by the Company or the Subsidiary employing
the Grantee (as the case may be), and the Company or the Subsidiary will have
the right, which is hereby expressly reserved, to terminate or change the terms
of the employment of the Grantee at any time for any reason whatsoever, with or
without good cause or notice, and to determine when Grantee is no longer
providing ongoing service to the Company for purposes of administering Grantee’s
grant of RSUs, except as may be expressly prohibited by the laws of the
jurisdiction in which the Grantee is employed.

(d)           The future
value of the Shares is unknown and cannot be predicted with certainty.

(e)           Choice of Language.

(i)            For Employees of Canadian Locations:  The undersigned agrees that it is his or her
express wish that this form and all documents relating to his or her
participation in the scheme be drawn in the English language only.  Le soussigné convient que sa volonté expresse
est que ce formulaire ainsi que tous les documents se rapportant à sa
participation au régime soient rédigés en langue anglaise seulement.

(ii)           For Employees of Locations Other than
Canada:  Grantee has received this Agreement
and any other related communications and consents to having received these
documents solely in English.

15.           Binding Agreement. 
Subject to the limitation on the transferability of this grant contained
herein, this Agreement will be binding upon and inure to the benefit of the
heirs, legatees, legal representatives, successors and assigns of the parties
hereto.

16.           Additional Conditions to Issuance of Stock.  If
at any time the Company will determine, in its discretion, that the listing,
registration or qualification of the Shares upon any securities exchange or
under any state or federal law, or the consent or approval of any governmental
regulatory authority is necessary or desirable as a condition to the issuance
of Shares to the Grantee (or Grantee’s estate), such issuance will not occur
unless and until such listing, registration, qualification, consent or approval
will have been effected or obtained free of any conditions not acceptable to
the Company.  The Company will make all
reasonable efforts to meet the requirements of any such state or federal law or
securities exchange and to obtain any such consent or approval of any such
governmental authority.

 11
 

17.           Administrator Authority.  The
Administrator has the power to interpret the Plan, the Notice of Grant and this
Agreement and to adopt such rules for the administration, interpretation and
application thereof as are consistent therewith and to interpret or revoke any
such rules (including, but not limited to, the determination of whether or not
any RSUs have vested).  Any
dispute regarding the interpretation of this Agreement will be submitted by
Grantee or by the Company forthwith to the Administrator which will review such
dispute at its next regular meeting.  All actions taken and all interpretations and
determinations made by the Administrator in good faith will be final and
binding upon Grantee, the Company and all other interested persons.  No member of the Administrator will be
personally liable for any action, determination or interpretation made in good
faith with respect to the Plan, the Notice of Grant or this Agreement.

18.           Address for Notices.  Any notice to be given to the Company under
the terms of this Agreement will be made in writing and deemed effective: (i)
upon delivery when delivered in person; or (iii) when delivered by registered
or certified mail, postage prepaid, return receipt requested, addressed to the
Company at 1277 Orleans Drive, Sunnyvale, CA 94089, Attn: Stock
Administrator, or at such other address as the Company may hereafter designate
in writing or electronically.

19.           Captions.  Captions provided herein are
for convenience only and are not to serve as a basis for interpretation or
construction of this Agreement.

20.           Agreement Severable.  In
the event that any provision in this Agreement will be held invalid or
unenforceable, such provision will be severable from, and such invalidity or
unenforceability will not be construed to have any effect on, the remaining
provisions of this Agreement.

21.           Modifications to the Agreement.  This
Agreement constitutes the entire understanding of the parties on the subjects
covered.  Grantee expressly warrants that
he or she is not accepting this Agreement in reliance on any promises,
representations, or inducements other than those contained herein.  Modifications to this Agreement or the Plan
can be made only in an express written contract executed by a duly authorized
officer of the Company.  Notwithstanding
anything to the contrary in the Plan or this Agreement, the Company reserves
the right to revise this Agreement as it deems necessary or advisable, in its
sole discretion and without the consent of Grantee, to comply with Section 409A
of the Internal Revenue Code of 1986, as amended (the “Code”) or to otherwise
avoid imposition of any additional tax or income recognition under Section 409A
of the Code in connection to this award of RSUs.

22.           No Waiver.  Either party’s failure to enforce any
provision or provisions of this Agreement will not in any way be construed as a
waiver of any such provision or provisions, nor prevent that party from
thereafter enforcing each and every other provision of this Agreement.  The rights granted both parties herein are
cumulative and will not constitute a waiver of either party’s right to assert
all other legal remedies available to it under the circumstances.

(Form
of Agreement as of August 2007)

 12

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