Document:

Exhibit 4.3

                      CALIFORNIA MICRO DEVICES CORPORATION

                            STOCK PURCHASE AGREEMENT

                                November 21, 2001

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                                  Exhibit 4.3

                                TABLE OF CONTENTS

                                                                            Page
                                                                            ----

1.   Purchase and Sale of Stock..............................................1
         1.1      Sale and Issuance of Common Stock..........................1
         1.2      Closings...................................................1

2.   Representations and Warranties of the Company...........................1
         2.1      Corporate Existence and Power..............................1
         2.2      Authorization; No Contravention............................2
         2.3      Governmental Authorization; Third Party Consents...........2
         2.4      Binding Effect.............................................2
         2.5      Litigation.................................................3
         2.6      Compliance with Laws.......................................3
         2.7      Capitalization.............................................3
         2.8      No Default or Breach; Contractual Obligations..............4
         2.9      Title to Properties........................................4
         2.10     Reports; Financial Statements..............................4
         2.11     Taxes......................................................5
         2.12     No Material Adverse Change; Ordinary Course of Business....6
         2.13     Private Offering...........................................6
         2.14     Labor Relations............................................6
         2.15     Employee Benefit Plans.....................................6
         2.16     Liabilities................................................7
         2.17     Intellectual Property......................................8
         2.18     Potential Conflicts of Interest............................9
         2.19     Trade Relations............................................9
         2.20     Outstanding Borrowing.....................................10
         2.21     Broker's, Finder's or Similar Fees........................10
         2.22     Disclosure................................................10

3.   Representations and Warranties of the Investors........................10
         3.1      Authorization.............................................10
         3.2      Purchase Entirely for Own Account.........................10
         3.3      Reliance Upon Investor's Representations..................11
         3.4      Receipt of Information....................................11
         3.5      Investment Experience.....................................11
         3.6      Accredited Investor.......................................11
         3.7      Restricted Securities.....................................11
         3.8      Legends...................................................12

4.   Registration of the Shares; Compliance with the Securities Act.........12
         4.1      Registration Procedures and Expenses......................12
         4.2      Transfer of Shares After Registration; Suspension.........13
         4.3      Indemnification...........................................14
         4.4      Termination of Conditions and Obligations.................17

5.   Conditions of each Investor's Obligations at Closing...................17
         5.1      Representations and Warranties............................17
         5.2      Performance...............................................17
         5.3      Compliance Certificate....................................17
         5.4      Qualifications............................................17
         5.5      Opinion of Counsel........................................18

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                                  Exhibit 4.3

6.   Conditions of the Company's Obligations at Closing.....................18
         6.1      Representations and Warranties............................18
         6.2      Qualifications............................................18

7.   Miscellaneous..........................................................18
         7.1      Entire Agreement..........................................18
         7.2      Survival..................................................18
         7.3      Successors and Assigns....................................18
         7.4      Governing Law.............................................19
         7.5      Counterparts..............................................19
         7.6      Titles and Subtitles......................................19
         7.7      Notices...................................................19
         7.8      Expenses..................................................19
         7.9      Attorneys' Fees...........................................19
         7.10     Amendments and Waivers....................................20
         7.11     Severability..............................................20
         7.12     Rights of the Investor....................................20

Exhibits

Exhibit A - Certificate of Subsequent Sale
Exhibit B - Form of Opinion of Company's counsel*
Exhibit C - Schedule of Exceptions*

o    The following exhibits to the Stock Purchase Agreement have been omitted.
o    The Company will funish  copies of the omitted  exhibits to the  Commission
     upon request:

     o    Exhibit B - Form of Opinion of Company's counsel
     o    Exhibit C - Schedule of Exceptions

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                      CALIFORNIA MICRO DEVICES CORPORATION

                            STOCK PURCHASE AGREEMENT

         THIS STOCK PURCHASE AGREEMENT (this "Agreement") is made as of the 21st
day of November,  2001, by and among  CALIFORNIA  MICRO DEVICES  CORPORATION,  a
California  corporation (the  "Company"),  and each of the persons listed on the
signature  pages hereto (each of whom is herein  referred to  individually as an
"Investor" and  collectively  as the  "Investors").  The parties hereto agree as
follows:

         1. Purchase and Sale of Stock.

         1.1 Sale and  Issuance  of  Common  Stock.  Subject  to the  terms  and
conditions  of this  Agreement,  each  Investor  severally  (and not jointly and
severally) agrees to purchase at the Closing (as defined below), and the Company
agrees to issue and sell to each Investor at the Closing,  that number of shares
(the  "Shares")  of common  stock,  no par value,  of the Company  (the  "Common
Stock") set forth above such  Investor's name on the signature pages hereto at a
price per Share equal to $4.11 (the  "Purchase  Price"),  up to an  aggregate of
2,000,000 shares of Common Stock.

         1.2 Closing.  The purchase and sale of the Shares (the "Closing") shall
occur no later than  December 3, 2001 at a place and time to be specified by the
Company  and  Needham  &  Company  (the  "Placement  Agent"),  and of which  the
Investors  will be notified in not less than two (2) business days in advance by
the Placement  Agent.  At the Closing,  after receipt of payment  therefor,  the
Company  shall  arrange   delivery  to  each  Investor  of  one  or  more  stock
certificates  representing  the number of Shares set forth above such Investor's
name on the signature  pages hereto,  each such  certificate to be registered in
the name of the Investor. The parties acknowledge that the schedule of Investors
attached hereto as Schedule A is a preliminary schedule of investors. As soon as
practicable  after the Closing,  the Company  shall  deliver to each  Investor a
completed  Schedule A, listing each Investor and the amount of Shares  purchased
by such Investor hereunder.

         2.  Representations  and Warranties of the Company.  The Company hereby
represents and warrants to each Investor that, except as set forth on a Schedule
of  Exceptions  attached  hereto as  Exhibit  C,  specifically  identifying  the
relevant  subparagraph(s)  hereof,  which  exceptions  shall  be  deemed  to  be
representations and warranties as if made hereunder:

         2.1  Corporate  Existence  and  Power.  The  Company,  and  each of the
corporations  or other  entities  of which the  Company  holds a majority of the
voting power of the  outstanding  voting equity  securities or a majority of the
economic  equity  interest  of such  corporation  or entity  (collectively,  the
"Subsidiaries")  (a) is a corporation  duly organized,  validly  existing and in
good standing under the laws of the jurisdiction of its  incorporation;  (b) has
all requisite corporate power and authority to own and operate its property,  to
lease the property it operates as lessee and to conduct the business in which it
is currently engaged; (c) is duly qualified as a foreign  corporation,  licensed
and in good standing under the laws of each jurisdiction in which its ownership,
lease or  operation  of property or the conduct of its  business  requires  such
qualification,  except where the failure to be so qualified could not reasonably
be expected to have a material  adverse  effect on the  Condition of the Company
and (d) has the corporate  power and  authority to execute,  deliver and perform
its obligations under this Agreement.

         2.2  Authorization;  No  Contravention.  The  execution,  delivery  and
performance by the Company of this Agreement and the  transactions  contemplated
hereby and  thereby (a) have been duly  authorized  by all  necessary  corporate
action  of the  Company;  (b) do not  contravene  the terms of the  Articles  of
Incorporation or the By-laws; (c) do not violate, conflict with or result in any
breach, default or contravention of (or with due notice or lapse of time or both
would result in any breach, default or contravention of), or the creation of any
mortgage, deed of trust, pledge,  hypothecation,  assignment,  encumbrance, lien
(statutory  or  otherwise)  or  preference,  priority,  right or other  security
interest or  preferential  arrangement  (a "Lien")  under,  any provision of any
agreement,  undertaking,  contract, indenture, mortgage, deed of trust, or other
instrument  to which the Company is a party or by which its property is bound (a
"Contractual  Obligation")  of the Company or any law,  statute,  treaty,  rule,
regulation,   right,   privilege,   qualification,   license  or   franchise  (a
"Requirement of Law") applicable to the Company except such

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violations or conflicts that would not reasonably be expected to have a material
adverse  effect on the  Condition  of the  Company;  and (d) do not  violate any
judgment,  injunction, writ, award, decree or order of any nature (collectively,
"Orders")  of the  government  of any  nation,  state,  city,  locality or other
political  subdivision  thereof, any entity exercising  executive,  legislative,
judicial, regulatory or administrative functions of or pertaining to government,
(a "Governmental Authority") against, or binding upon, the Company or any of its
Subsidiaries.

         2.3  Governmental  Authorization;  Third Party  Consents.  No approval,
consent, compliance, exemption,  authorization or other action by, or notice to,
or filing  with,  any  Governmental  Authority  or any other  individual,  firm,
corporation,  partnership,  trust, association, joint venture, limited liability
company,  or other  entity of any kind (a  "Person"),  and no lapse of a waiting
period under a Requirement  of Law, is necessary or required in connection  with
the execution, delivery or performance (including, without limitation, the sale,
issuance and delivery of the Shares) by, or enforcement  against, the Company of
this Agreement and the transactions contemplated hereby and thereby.

         2.4 Binding Effect. This Agreement has been duly executed and delivered
by the Company,  and this  Agreement  constitutes  the legal,  valid and binding
obligations of the Company,  enforceable  against the Company in accordance with
their terms,  except as enforceability may be limited by applicable  bankruptcy,
insolvency,  reorganization,  fraudulent  conveyance or transfer,  moratorium or
similar laws  affecting the  enforcement of creditors'  rights  generally and by
general  principles of equity relating to enforceability  (regardless of whether
considered in a proceeding at law or in equity).

         2.5  Litigation.  Except as set forth on Section 2.5 of the Schedule of
Exceptions,  or as disclosed in all reports,  registration  statements and other
filings,  together with any  amendments  thereto,  filed by the Company with the
Commission  since November 15, 2001 (the "SEC  Reports"),  there are no actions,
suits, proceedings, claims, complaints, disputes, arbitrations or investigations
(collectively, "Claims") pending or, to the Knowledge of the Company's executive
officers (the  "Knowledge") of the Company,  threatened,  at law, in equity,  in
arbitration or before any Governmental  Authority  against the Company or any of
its  Subsidiaries  that seeks in excess of $75,000 in damages nor is the Company
aware that there is any basis for any of the foregoing.  The foregoing includes,
without  limitation,  Claims  pending  or,  to the  Knowledge  of  the  Company,
threatened  or any  basis  therefor  known by the  Company  involving  the prior
employment of any employee of the Company or any of its Subsidiaries,  their use
in connection with the business of the Company or any of its Subsidiaries of any
information or techniques allegedly proprietary to any of their former employers
or their  obligations  under any agreements with prior  employers.  No Order has
been issued by any court or other Governmental  Authority against the Company or
any of its Subsidiaries purporting to enjoin or restrain the execution, delivery
or performance of this Agreement or any of the other Transaction Documents.

         2.6 Compliance  with Laws. The Company and each of its  Subsidiaries is
in compliance  in all material  respects  with all  Requirements  of Law and all
Orders issued by any court or Governmental  Authority against the Company in all
respects.  To the Company's  Knowledge,  there are no  Requirements of Law which
could  reasonably  be expected to prohibit or restrict the Company or any of its
Subsidiaries from, or otherwise  materially  adversely effect the Company or any
of its Subsidiaries in,  conducting its business in any jurisdiction in which it
now conducts its business.

         2.7 Capitalization.

         (a) The authorized  capital stock of the Company consists of 25,000,000
shares of Common Stock,  of which  11,614,100  shares (the "Issued  Stock") were
issued and  outstanding  as of September  30,  2001,  and  10,000,000  shares of
preferred   stock,   of  which  400,000  have  been   designated  as  "Series  A
Participating  Preferred  Stock",  none of which was issued or outstanding as of
September 30, 2001. As of September 30, 2001,  3,655,000  shares of Common Stock
were reserved for issuance  under the Company's 1995 Employee Stock Option Plan,
as amended,  and 390,000 shares of Common Stock were reserved for issuance under
the  Company's  Non-Employee  Directors'  Stock Option Plan,  as amended.  As of
September  30, 2001,  2,205,189  shares of Common Stock were  issuable  upon the
exercise of stock options under the Company's  1995 Employee  Stock Option Plan,
and 241,620  shares of Common  Stock were  issuable  upon the  exercise of stock
options under the Company's 1995 Non-Employee  Directors' Stock Option Plan. The
Issued Stock represents all of the issued and outstanding shares of

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capital  stock of the  Company  and all  shares of Issued  Stock  have been duly
authorized and validly issued and are fully paid and  nonassessable.  All of the
shares of Issued Stock and other  securities  of the Company have been  offered,
issued and sold by the Company in compliance  in all material  respects with the
Securities Act of 1933, as amended ("the  Securities  Act") and applicable state
securities  laws.  There are no  contracts or other  agreements  relating to the
issuance,  sale or transfer of Issued Stock or any equity or other securities of
the Company  other than  pursuant to the 1995  Employee  Stock Option  Plan,  as
amended,  the 1995  Non-Employee  Directors' Stock Option Plan, as amended,  and
this Agreement.

         (b) The Shares are duly  authorized,  and when issued and  delivered to
the Purchasers after payment  therefor,  will be validly issued,  fully paid and
non-assessable,  and assuming the accuracy of the representations and warranties
of the  Purchasers set forth in Section 3 of this  Agreement,  will be issued in
compliance  with  the  registration  and   qualification   requirements  of  all
applicable federal, state and foreign securities laws and will be free and clear
of all other Liens.  None of the issued and  outstanding  shares of Common Stock
were issued in violation of any preemptive rights.

         2.8  No  Default  or  Breach;  Contractual  Obligations.   All  of  the
Contractual  Obligations  to which the Company or any of its  Subsidiaries  is a
party,  whether  written or oral,  which are  required by the Exchange Act to be
disclosed in the SEC Reports (collectively,  "Material Contractual Obligations")
are valid, subsisting,  in full force and effect and binding upon the Company or
its  Subsidiary,  as the case may be, and, to the Knowledge of the Company,  the
other parties  thereto,  and the Company or its Subsidiary,  as the case may be,
has paid in full or accrued all amounts due thereunder and has satisfied in full
or provided for all of its liabilities and  obligations  thereunder,  except for
such amounts as are being  contested  by the Company in good faith.  Neither the
Company nor any of its  Subsidiaries has received notice of a default and is not
in default under, or with respect to, any Material  Contractual  Obligation nor,
to the Knowledge of the Company,  does any  condition  exist that with notice or
lapse of time or both would constitute a default thereunder. To the Knowledge of
the Company,  no other party to any such  Contractual  Obligation  is in default
thereunder,  nor does any  condition  exist that with notice or lapse of time or
both would constitute a default by such other party thereunder.

         2.9 Title to Properties.  The Company and each of its  Subsidiaries has
good, record and marketable title in fee simple to, or holds interests as lessee
under leases in full force and effect in, all real  property  used in connection
with its  business  or  otherwise  owned or  leased by it, in each case free and
clear of all Liens,  except for Liens that would required to be described in the
notes to the Financial Statements. The Company and each of its Subsidiaries owns
and has good,  valid and  marketable  title to all of its  properties and assets
used in its business or reflected as owned on the Financial Statements,  in each
case free and clear of all Liens,  except for Liens  that would  required  to be
described in the notes to the Financial Statements.

         2.10 Reports; Financial Statements.

         (a) As of the respective dates of their filing with the Commission, the
SEC Reports,  complied in all material respects with the applicable requirements
of the  Securities  Act, the Exchange Act, and the rules and  regulations of the
Commission  promulgated  thereunder,  except as  disclosed  in the SEC  Reports.
Except as disclosed in the SEC Reports, the SEC Reports did not at the time they
were filed with the Commission,  or will not at the time they are filed with the
Commission,  contain any untrue  statement of a material fact or omit to state a
material  fact  required to be stated  therein or necessary in order to make the
statements therein, in the light of the circumstances under which they are made,
not misleading.  The Company is not aware of any issues raised by the Commission
with  respect to any of the SEC Reports,  other than those  disclosed in the SEC
Reports.

         (b) Except as disclosed in the SEC Reports, the consolidated  financial
statements  (including,  in each case,  any related  schedules or notes thereto)
contained  in or  incorporated  by  reference  in the SEC  Reports  and any such
reports,  registration  statements  and other filings to be filed by the Company
with the Commission  prior to the Closing Date (the "Financial  Statements") (i)
have  been or will be  prepared  in  accordance  with the  published  rules  and
regulations of the Commission and GAAP  consistently  applied during the periods
involved  (except as may be  indicated  in the notes  thereto)  and (ii)  fairly
present  or will  fairly  present  in all  material  respects  the  consolidated
financial  position  of the Company and its  Subsidiaries  as of the  respective
dates  thereof  and  the  consolidated  results  of  operations,  statements  of
stockholders'  equity and cash flows for the periods indicated,  except that any
unaudited

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interim  financial  statements  were or will be subject to normal and  recurring
year-end   adjustments  and  may  omit  footnote   disclosure  as  permitted  by
regulations of the Commission.

         2.11 Taxes.  (a) The Company and each of its  Subsidiaries has paid all
federal, state, provincial, county, local, foreign and other taxes (the "Taxes")
which have come due and are  required to be paid by it through the date  hereof,
and all  deficiencies or other additions to Tax,  interest and penalties owed by
it in  connection  with any such Taxes,  other than Taxes being  disputed by the
Company in good faith for which  adequate  reserves have been made in accordance
with GAAP;  (b) the Company  and each of its  Subsidiaries  has timely  filed or
caused to be filed all  returns  for Taxes  that it is  required  to file on and
through the date hereof (including all applicable extensions),  and all such Tax
returns are accurate and complete in all material respects;  (c) with respect to
all Tax  returns of the Company  and each of its  Subsidiaries,  (i) there is no
unassessed  Tax  deficiency  proposed  or,  to the  Knowledge  of  the  Company,
threatened  against the Company or any of its  Subsidiaries and (ii) no audit is
in progress  with  respect to any return for Taxes,  no  extension of time is in
force  with  respect  to any date on which any  return for Taxes was or is to be
filed and no waiver or agreement  is in force for the  extension of time for the
assessment or payment of any Tax; (d) all provisions for Tax  liabilities of the
Company  and each of its  Subsidiaries  have  been  disclosed  in the  Financial
Statements  and made in  accordance  with  GAAP  consistently  applied,  and all
liabilities for Taxes of the Company and each of its  Subsidiaries  attributable
to periods prior to or ending on the Closing Date have been adequately disclosed
in the Financial Statements;  and (e) there are no Liens for Taxes on the assets
of the Company or any of its Subsidiaries.

         2.12 No Material  Adverse Change;  Ordinary  Course of Business.  Since
September 30, 2001,  except as disclosed in or  incorporated by reference in the
SEC  Reports,  (a)  there  has not  been any  material  adverse  change,  in the
Condition  of the Company,  (b) neither the Company nor any of its  Subsidiaries
has  participated in any  transaction  material to the Condition of the Company,
including, without limitation,  declaring or paying any dividend or declaring or
making any  distribution to its  stockholders  except out of the earnings of the
Company or its  Subsidiary,  as the case may be, (c) neither the Company nor any
of its subsidiaries has entered into any Material Contractual Obligation,  other
than in the  ordinary  course  of  business  and (d) there  has not  occurred  a
material  change in the accounting  principles or practice of the Company or any
of its Subsidiaries except as required by reason of a change in GAAP.

         2.13 Private  Offering.  Neither the Company nor any authorized  Person
acting on its behalf  has,  in  connection  with the offer,  sale,  exchange  or
issuance  of the  Shares,  engaged  in (i) any form of general  solicitation  or
general  advertising  (as those terms are used within the meaning of Rule 502(c)
under the Securities  Act),  (ii) any action  involving a public offering within
the  meaning of Section  4(2) of the  Securities  Act,  or (iii) any action that
would require the registration  under the Securities Act of the offering,  sale,
exchange  or issuance of the Shares  pursuant  to this  Agreement  or that would
violate applicable state securities or "blue sky" laws. The Company has not made
and will not prior to the Closing Date make,  directly or indirectly,  any offer
or sale of the  Shares  or of  securities  of the same or  similar  class as the
Shares if, as a result, the offer and sale contemplated  hereby would fail to be
entitled to exemption from the registration  requirements of the Securities Act.
As used  herein,  the terms  "offer" and "sale" have the  meanings  specified in
Section 2(3) of the Securities Act..

         2.14 Labor  Relations.  Except as could not  reasonably  be expected to
have a material adverse effect on the Condition of the Company:  (a) neither the
Company nor any of its Subsidiaries is engaged in any unfair labor practice; (b)
there is no strike,  labor  dispute,  slowdown  or  stoppage  pending or, to the
Knowledge  of  the  Company,  threatened  against  the  Company  or  any  of its
Subsidiaries ; (c) neither the Company nor any of its Subsidiaries is a party to
any collective  bargaining  agreement or contract;  and (d) no union  organizing
activities  are taking  place.  To the  Knowledge  of the  Company,  each of the
officers and key  employees of the Company and each of its  Subsidiaries  spends
all, or  substantially  all, of his business time on the business of the Company
or its Subsidiary,  as the case may be. To the Knowledge of the Company, none of
the  employees  of the  Company or any of its  Subsidiaries  is  resident in the
United States in violation of any Requirement of Law.

         2.15 Employee Benefit Plans.

         (a) The SEC Reports list or describe  each Plan that the Company or any
of its Subsidiaries maintains or to which the Company or any of its Subsidiaries
contributes (the "Company Plans"). Neither the Company nor

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any of its Subsidiaries has any liability under any Plans other than the Company
Plans.  Except as described in or  incorporated by reference in the SEC Reports,
neither the Company nor any Commonly  Controlled Entity maintains or contributes
to, or has within the preceding six years  maintained or contributed  to, or may
have any  liability  with  respect  to any Plan  subject to Title IV of ERISA or
Section 412 of the Code or any  "multiple  employer  plan" within the meaning of
the Code or ERISA. Each Company Plan (and related trust,  insurance  contract or
fund) has been  established and  administered in accordance with its terms,  and
complies in form and in operation with the applicable  requirements of ERISA and
the Code and other applicable Requirements of Law. All contributions  (including
all employer  contributions and employee salary reduction  contributions)  which
are due have been paid to each Company Plan.

         (b) No Claim with respect to the  administration  or the  investment of
the assets of any Company  Plan  (other than  routine  claims for  benefits)  is
pending.

         (c)  Except as could not  reasonably  be  expected  to have a  material
adverse  effect on the  Condition  of the  Company,  each  Company  Plan that is
intended to be qualified  under  Section  401(a) of the Code is so qualified and
has been so qualified  during the period since its adoption;  each trust created
under any such Plan is exempt from tax under Section  501(a) of the Code and has
been so exempt since its creation.

         (d) No Company Plan is a welfare plan (as defined in Section  (3)(l) of
ERISA)  that  provides  benefits  to current or former  employees  beyond  their
retirement or other  termination  of service  (other than  coverage  mandated by
Section 4980A of the Code, commonly referred to as "COBRA", the cost of which is
fully paid by the current or former employee or his or her dependents).

         (e) Neither the consummation of the  transactions  contemplated by this
Agreement nor any  termination of employment  following such  transactions  will
accelerate  the time of the payment or vesting  of, or  increase  the amount of,
compensation  due to any employee or former employee whether or not such payment
would constitute an "excess parachute payment" under Section 280G of the Code.

         (f) There are no unfunded  obligations under any Company Plan which are
not fully reflected in the Financial Statements.

         (g)  Except as could not  reasonably  be  expected  to have a  material
adverse  effect on the  Condition of the Company,  the Company has no liability,
whether  absolute or  contingent,  including any  obligations  under any Company
Plan,  with  respect to any  misclassification  of any person as an  independent
contractor rather than as an employee.

         2.16  Liabilities.  Neither the Company nor any of its Subsidiaries has
any direct or indirect obligation or liability (the "Liabilities") which are not
fully  reflected or reserved  against in the  Financial  Statements,  other than
Liabilities not exceeding $250,000 in the aggregate incurred since September 30,
2001 in the  ordinary  course of  business.  The Company has no Knowledge of any
circumstance,  condition, event or arrangement that could reasonably be expected
to  give  rise  hereafter  to  any  Liabilities  of  the  Company  or any of its
Subsidiaries  that,  individually  or in the  aggregate,  could  have a material
adverse effect on the Condition of the Company.

         2.17 Intellectual Property.

         (a) (i) The Company and each of its  Subsidiaries  is the owner of all,
or has the license or right to use,  sell and  license  all of, the  copyrights,
patents,  trade  secrets,  trademarks,   internet  assets,  software  and  other
proprietary  rights  (collectively,  "Intellectual  Property")  that are used in
connection  with its  business  as  presently  conducted,  free and clear of all
Liens.

                  (ii)  None of the  Intellectual  Property  is  subject  to any
         outstanding   Order,  and  no  action,   suit,   proceeding,   hearing,
         investigation, charge, complaint, claim or demand is pending or, to the
         Knowledge of the Company,  threatened,  which  challenges the validity,
         enforceability, use or ownership of the item.

                                      -5-
<PAGE>

                  (iii)  The   Company   and  each  of  its   Subsidiaries   has
         substantially  performed  all  obligations  imposed  upon it under  all
         Intellectual Property licenses, sublicenses, distributor agreements and
         other  agreements under which the Company or any of its Subsidiaries is
         either a licensor,  licensee  or  distributor,  except  such  licenses,
         sublicenses and other  agreements  relating to  off-the-shelf  software
         which is  commercially  available  on a retail basis and used solely on
         the computers of the Company or its Subsidiaries (collectively, the "IP
         Agreements").  The Company and each of its  Subsidiaries is not, nor to
         the Knowledge of the Company is any other party  thereto,  in breach of
         or default thereunder in any respect, nor is there any event which with
         notice or lapse of time or both would constitute a default  thereunder.
         All of the IP Agreements are valid,  enforceable  and in full force and
         effect,  and will  continue  to be so on  identical  terms  immediately
         following  the  Closing  except as  enforceability  may be  limited  by
         applicable   bankruptcy,   insolvency,    reorganization,    fraudulent
         conveyance  or  transfer,  moratorium  or similar  laws  affecting  the
         enforcement of creditors' rights generally and by general principles of
         equity relating to enforceability  (regardless of whether considered in
         a proceeding at law or in equity).

                  (iv) To the Knowledge of the Company, none of the Intellectual
         Property  currently  sold  or  licensed  by the  Company  or any of its
         Subsidiaries to any Person or used by or licensed to the Company or any
         of its Subsidiaries by any Person infringes upon or otherwise  violates
         any  Intellectual  Property  rights  of  others,  except  as could  not
         reasonably  be  expected  to  have a  material  adverse  effect  on the
         Condition of the Company.

         (b) No  litigation  is pending  and no Claim has been made  against the
Company or any of its  Subsidiaries  or, to the  Knowledge  of the  Company,  is
threatened,  contesting the right of the Company or any of its  Subsidiaries  to
sell or license to any Person or use the Intellectual Property presently sold or
licensed to such Person or used by the  Company or any of its  Subsidiaries.  To
the  Knowledge  of the  Company,  no  Person  is  infringing  upon or  otherwise
violating  the  Intellectual  Property  rights  of  the  Company  or  any of its
Subsidiaries.

         (c) No former  employer  of any  employee  of the Company or any of its
Subsidiaries has made a claim against the Company or any of its Subsidiaries or,
to the Knowledge of the Company, against any other Person, that such employee or
such consultant is utilizing Intellectual Property of such former employer.

         (d) To the  Knowledge  of  the  Company,  none  of the  trade  secrets,
wherever  located,  the  value  of  which  is  contingent  upon  maintenance  of
confidentiality  thereof, has been disclosed to any Person other than employees,
representatives and agents of the Company or any of its Subsidiaries,  except as
required pursuant to the filing of a patent application by the Company or any of
its Subsidiaries.

         (e) It is not  necessary  for the business of the Company or any of its
Subsidiaries to use any  Intellectual  Property owned by any director,  officer,
employee or consultant of the Company or any of its Subsidiaries (or persons the
Company or any of its Subsidiaries  presently intends to hire). To the Company's
Knowledge,  at no time during the  conception or reduction to practice of any of
the  Intellectual  Property  of the Company or any of its  Subsidiaries  was any
developer, inventor or other contributor to such Intellectual Property operating
under any grants from any  Governmental  Authority or subject to any  employment
agreement,  invention assignment,  nondisclosure  agreement or other Contractual
Obligation with any Person that could materially  adversely affect the rights of
the Company or any of its Subsidiaries to its Intellectual Property.

         2.18  Potential  Conflicts  of  Interest.   No  officer,   director  or
stockholder beneficially owning more than 5% of the outstanding shares of Common
Stock, to the Knowledge of the Company, no spouse of any such officer,  director
or stockholder,  and, to the Knowledge of the Company,  no affiliate (as defined
in Rule 12b-2 of the Exchange Act) of any of the foregoing (a) owns, directly or
indirectly, any interest in (excepting less than one percent (1%) stock holdings
for investment purposes in securities of publicly held and traded companies), or
is an officer,  director,  employee or consultant of, any Person which is, or is
engaged in business as, a competitor, lessor, lessee, supplier,  distributor, or
customer  of,  or  lender  to or  borrower  from,  the  Company  or  any  of its
Subsidiaries;  (b)  owns,  directly  or  indirectly,  in whole  or in part,  any
tangible or intangible property that the Company or any of its Subsidiaries use,
in the  conduct  of  business;  or (c) has any cause of  action  or other  claim
whatsoever against, or

                                      -6-
<PAGE>

owes or has  advanced  any  amount  to,  the  Company,  except for claims in the
ordinary course of business such as for accrued  vacation pay,  accrued benefits
under employee benefit plans, and similar matters and agreements existing on the
date hereof.

         2.19 Trade  Relations.  There exists no actual or, to the  Knowledge of
the Company,  threatened  termination,  cancellation  or  limitation  of, or any
material  adverse  modification  or change in, the business  relationship of the
Company or any of its subsidiaries, or the business of the Company or any of its
subsidiaries,  with any  customer  or  supplier  or any  group of  customers  or
suppliers whose purchases or inventories provided to the business of the Company
or any of its subsidiaries are individually or in the aggregate  material to the
Condition of the Company.

         2.20 Outstanding Borrowing.  Section 2.20 of the Schedule of Exceptions
sets  forth  the  amount  of all  indebtedness  of the  Company  and each of its
Subsidiaries as of the date hereof,  the Liens that relate to such  indebtedness
and  that  encumber  the  assets  and  the  name  of  each  lender  thereof.  No
indebtedness  is entitled to any voting  rights in any matters voted upon by the
holders of the Common Stock.

         2.21  Broker's,  Finder's or Similar  Fees.  Except for fees payable to
Needham & Company, there are no brokerage commissions,  finder's fees or similar
fees  or  commissions  payable  by the  Company  or any of its  Subsidiaries  in
connection  with the  transactions  contemplated  hereby based on any agreement,
arrangement or understanding  with the Company or any of its Subsidiaries or any
action taken by any such Person.

         2.22  Disclosure.  This  Agreement and the  documents and  certificates
furnished to the  Purchasers by the Company do not contain any untrue  statement
of a material fact or omit to state a material  fact  necessary in order to make
the statements  contained herein or therein,  in the light of the  circumstances
under which they were made, not misleading.

         3.  Representations  and  Warranties  of the  Investors.  Each Investor
hereby represents and warrants to the Company that, solely as to such Investor:

         3.1 Authorization.  The Investor has all requisite  corporate power and
authority to enter into this  Agreement  and that this  Agreement  constitutes a
valid and legally binding  obligation of the Investor,  except (a) as limited by
applicable bankruptcy, insolvency, reorganization,  moratorium and other laws of
general  application  affecting the enforcement of creditors'  rights generally,
(b) as limited by laws  relating to the  availability  of specific  performance,
injunctive  relief  or  other  equitable  remedies,  and (c) to the  extent  the
indemnification  provisions  contained  in  this  Agreement  may be  limited  by
applicable federal or state securities laws.

         3.2 Purchase  Entirely  for Own Account.  The Shares to be purchased by
the Investor will be acquired for investment for the Investor's own account, and
not as a nominee or agent,  and not with a view to the resale or distribution of
any part thereof, and the Investor has no present intention of selling, granting
any participation in, or otherwise  distributing the same. The Investor is not a
party to any contract, undertaking,  agreement or arrangement with any person to
sell, transfer or otherwise dispose of any of the Shares purchased by it.

         3.3 Reliance Upon Investor's Representations.  The Investor understands
that the issuance and sale of the Shares to it will not be registered  under the
Securities  Act on the ground  that such  issuance  and sale will be exempt from
registration under the Securities Act pursuant to section 4(2) thereof, and that
the  Company's   reliance  on  such  exemption  is  based  on  each   Investor's
representations  set forth herein.  The Investor realizes that the basis for the
exemption  may not be present  if,  notwithstanding  such  representations,  any
Investor has in mind merely acquiring the securities for a fixed or determinable
period in the future,  or for a market rise,  or for sale if the market does not
rise. Such Investor has no such present intention.

         3.4 Receipt of  Information.  The  Investor  has  received  the Private
Placement  Memorandum  dated  October  23,  2001  (the  "PPM")  and  has  had an
opportunity to ask questions and receive answers from the Company  regarding the
PPM and the terms and  conditions of the issuance and sale of the Shares and the
business,  properties,  prospects and financial  condition of the Company and to
obtain additional information (to the extent the Company

                                      -7-
<PAGE>

possessed such  information or could acquire it without  unreasonable  effort or
expense) necessary to verify the accuracy of any information  furnished to it or
to which it had access.  The  foregoing,  however,  does not limit or modify the
representations  and warranties of the Company in Section 2 of this Agreement or
the right of the Investor to rely thereon.  No person other than the Company has
been  authorized  to give  any  information  other  than  the PPM or to give any
representation  not contained in this Agreement in connection  with the Offering
and, if given or made,  such  information or  representation  must not be relied
upon as having been authorized by the Company.

         3.5  Investment  Experience.  The Investor is experienced in evaluating
and investing in securities  of companies  and  acknowledges  that it is able to
fend for itself,  can bear the  economic  risk of its  investment,  and has such
knowledge and experience in financial and business matters that it is capable of
evaluating the merits and risks of the investment in the Shares.

         3.6 Accredited  Investor.  The Investor is an "accredited  investor" as
such term is defined in Rule 501 of

         Regulation  D  promulgated  under the  Securities  Act,  for the reason
indicated on the signature page of this Agreement.

         3.7 Restricted Securities. The Investor understands that the Shares may
not be sold, transferred or otherwise disposed of without registration under the
Securities  Act  or an  exemption  therefrom,  and  that  in the  absence  of an
effective  registration  statement covering the Shares or an available exemption
from   registration   under  the  Securities   Act,  the  Shares  must  be  held
indefinitely.  In  particular,  the Investor is aware that the Shares may not be
sold pursuant to Rule 144 promulgated under the Securities Act unless all of the
conditions of that Rule are met. Among the conditions for use of Rule 144 is the
availability of current information to the public about the Company.

         3.8  Legends.  To the  extent  applicable,  each  certificate  or other
document  evidencing  any of the Shares  shall be endorsed  with the legends set
forth  below,  and the  Investor  covenants  that,  except  to the  extent  such
restrictions  are waived by the  Company,  the  Investor  shall not transfer the
shares   represented  by  any  such  certificate   without  complying  with  the
restrictions on transfer described in the legends endorsed on such certificate:

         (a) The following legend under the Act:

         "THE  SECURITIES   REPRESENTED  BY  THIS   CERTIFICATE  HAVE  NOT  BEEN
         REGISTERED OR QUALIFIED  UNDER THE  SECURITIES ACT OF 1933, AS AMENDED,
         OR THE SECURITIES LAWS OF ANY STATE,  AND MAY NOT BE SOLD,  OFFERED FOR
         SALE, ASSIGNED,  PLEDGED,  HYPOTHECATED OR OTHERWISE TRANSFERRED IN THE
         ABSENCE  OF A  REGISTRATION  STATEMENT  IN EFFECT  WITH  RESPECT TO THE
         SECURITIES  UNDER  SUCH ACT OR ELSE UPON AN OPINION OF COUNSEL OR OTHER
         EVIDENCE   REASONABLY   SATISFACTORY   TO   CALIFORNIA   MICRO  DEVICES
         CORPORATION  THAT SUCH  REGISTRATION  IS NOT  REQUIRED  OR UNLESS  SOLD
         PURSUANT TO RULE 144 OF SUCH ACT OR ANOTHER APPLICABLE EXEMPTION."

         (b) Such other legends as may be required under state securities laws.

         3.9  Broker's,  Finder's  or  Similar  Fees.  There  are  no  brokerage
commissions,  finder's  fees or  similar  fees  or  commissions  payable  by the
Investor in connection with the  transactions  contemplated  hereby based on any
agreement, arrangement or understanding with the Investor or any action taken by
any such Person.

         4. Registration of the Shares; Compliance with the Securities Act.

         4.1  Registration  Procedures  and Expenses.  The Company hereby agrees
that it shall:

         (a) subject to receipt of  necessary  information  from the  Investors,
prepare  and file with the SEC on or before  the date  three (3) weeks  from the
Closing Date a registration statement on Form S-3 (the "Registration Statement")
to enable the resale of the Shares by the Investors  from time to time on Nasdaq
and use reasonable best efforts to respond to comments from the SEC promptly and
cause such Registration Statement to be declared

                                      -8-
<PAGE>

effective as promptly as  practicable  after  filing and to remain  continuously
effective  until the earlier of (i) the second  anniversary  of the Closing,  or
(ii)  such  time as all  Shares  purchased  by the  Investors  pursuant  to this
Agreement have been sold thereunder (the "Registration Period");

         (b) prepare and file with the SEC such  amendments  and  supplements to
the  Registration  Statement and the prospectus used in connection  therewith as
may be necessary to keep the Registration  Statement  effective until the end of
the Registration Period;

         (c)  furnish to the  Investors  with  respect to the Shares  registered
under  the  Registration  Statement  such  reasonable  number  of  copies of the
Registration Statement,  prospectuses and preliminary prospectuses in conformity
with the  requirements  of the  Securities  Act and such other  documents as the
Investor may reasonably request, in order to facilitate the public sale or other
disposition of all or any of the Shares by the Investor;

         (d)  file  documents  required  of the  Company  for  normal  blue  sky
clearance in states  specified in writing by the  Investor,  provided,  however,
that the  Company  shall not be required to qualify to do business or consent to
service of process in any  jurisdiction  in which it is not now so  qualified or
has not so consented;

         (e) use its reasonable best efforts to cause the Shares to be listed on
Nasdaq in connection with the filing of the Registration Statement under Section
4.1(a);

         (f) bear all expenses in  connection  with the  procedures in paragraph
(a) through (e) of this Section 4.1 and the  registration of the Shares pursuant
to the Registration  Statement other than fees and expenses,  if any, of counsel
or other advisers to the Investors or underwriting discounts, brokerage fees and
commissions incurred by the Investors, if any.

         It shall be a condition  precedent to the obligations of the Company to
take any action  pursuant to this Section 4.1 that the Investor shall furnish to
the Company  such  information  regarding  itself,  the Shares to be sold by the
Investor,  and the intended method of disposition of such securities as shall be
required to effect the registration of the Shares.

         4.2 Transfer of Shares After Registration; Suspension.

         (a)  Subject to Section  4.4,  the  Investors  agree that they will not
offer to sell,  solicit  offers to buy,  dispose of,  loan,  pledge or grant any
right (each, a "Disposition") with respect to the Shares that would constitute a
sale  within  the  meaning  of  the  Securities  Act  except   pursuant  to  the
Registration  Statement  referred to in Section 4.1, and that they will promptly
notify  the  Company  of  any  changes  in  the  information  set  forth  in the
Registration  Statement after it is prepared  regarding the Investor or its plan
of distribution.

         (b) In addition to any suspension rights under paragraph (c) below, the
Company may, upon the happening of any event, that, in the judgment of Company's
board of directors, renders it advisable to suspend use of the prospectus for no
more than sixty (60) days in the  aggregate  in any twelve (12) month  period of
time due to  pending  corporate  developments,  public  filings  with the SEC or
similar  events,  suspend  use of the  prospectus  on  written  notice  to  each
Investor,  in which case each Investor shall  discontinue  disposition of Shares
covered  by  the  Registration   Statement  or  prospectus  until  copies  of  a
supplemented or amended prospectus are distributed to the Investors or until the
Investors  are advised in writing by the Company that the use of the  applicable
prospectus may be resumed.

         (c) Subject to paragraph (d) below, in the event of: (i) any request by
the SEC or any other federal or state  governmental  authority during the period
of effectiveness of the Registration  Statement for amendments or supplements to
a Registration  Statement or related  prospectus or for additional  information,
(ii)  the  issuance  by the  SEC or any  other  federal  or  state  governmental
authority  of any stop order  suspending  the  effectiveness  of a  Registration
Statement or the  initiation  of any  proceedings  for that  purpose,  (iii) the
receipt by the Company of any notification with respect to the suspension of the
qualification  or exemption from  qualification of any of the Shares

                                      -9-
<PAGE>

for  sale in any  jurisdiction  or the  initiation  of any  proceeding  for such
purpose,  (iv) any event or circumstance  which  necessitates  the making of any
changes  in  the   Registration   Statement  or  prospectus,   or  any  document
incorporated or deemed to be incorporated therein by reference,  so that, in the
case of the Registration  Statement, it will not contain any untrue statement of
a material  fact or any omission to state a material  fact required to be stated
therein or necessary to make the statements therein not misleading,  and that in
the case of the  prospectus,  it will not  contain  any  untrue  statement  of a
material  fact or any  omission to state a material  fact  required to be stated
therein  or  necessary  to make  the  statements  therein,  in the  light of the
circumstances under which they were made, not misleading, then the Company shall
deliver a certificate in writing to the Investors (the  "Suspension  Notice") to
the effect of the foregoing  and, upon receipt of such  Suspension  Notice,  the
Investors  will  refrain from  selling any Shares  pursuant to the  Registration
Statement  (a  "Suspension")  until  the  Investors'  receipt  of  copies  of  a
supplemented or amended prospectus  prepared and filed by the Company,  or until
it is advised in writing by the Company that the current prospectus may be used,
and has  received  copies of any  additional  or  supplemental  filings that are
incorporated or deemed incorporated by reference in any such prospectus.  In the
event of any  Suspension,  the Company will use its  reasonable  best efforts to
cause the use of the  prospectus  so suspended to be resumed as soon as possible
after delivery of a Suspension Notice to the Investors.

         (d) Provided that a Suspension is not then in effect, the Investors may
sell Shares under the Registration Statement, provided that the selling Investor
arranges for delivery of a current prospectus to the transferee of such Shares.

         (e) In the event of a sale of Shares by an Investor, such Investor must
also deliver to the  Company's  transfer  agent,  with a copy to the Company,  a
Certificate  of Subsequent  Sale  substantially  in the form attached  hereto as
Exhibit A, so that ownership of the Shares may be properly transferred.

         (f)  For so  long  as the  Company  will  have a  class  of  securities
registered under Section 12(b) or Section 12(g) of the Exchange Act, the Company
covenants that it will file, on a timely basis, any reports required to be filed
by it under the  Exchange Act and the rules and  regulations  adopted by the SEC
thereunder  and keep all such  reports  and  public  information  current to the
extent  required  by Rule 144 under the  Securities  Act for a period of two (2)
years after the Closing.

         4.3 Indemnification.  For the purpose of this Section 4.3 only, (i) the
term  "Registration  Statement"  shall  include any final  prospectus,  exhibit,
supplement or amendment  included in or relating to the  Registration  Statement
referred  to in  Section  4.1(a);  and (ii) the term  "untrue  statement"  shall
include  any  untrue  statement  or any  omission  to state in the  Registration
Statement a material fact required to be stated therein or necessary to make the
statements  therein,  in the light of the  circumstances  under  which they were
made, not misleading.

         (a) The Company  agrees to indemnify  and hold  harmless  each Investor
(and each  person,  if any,  who controls  such  Investor  within the meaning of
section 15 of the Securities Act) from and against any losses,  claims,  damages
or liabilities to which such Investor (or such person, if any, who controls such
Investor  within the  meaning of  section 15 of the  Securities  Act) may become
subject (under the Securities Act or otherwise) insofar as such losses,  claims,
damages or liabilities (or actions or proceedings in respect  thereof) arise out
of, or are based upon (i) any untrue  statement or alleged untrue statement of a
material fact contained in the  Registration  Statement,  or (ii) any failure by
the Company to fulfill any undertaking  included in the Registration  Statement,
and the Company will  reimburse  such  Investor  (and each  person,  if any, who
controls such Investor  within the meaning of section 15 of the Securities  Act)
for any reasonable legal or other expenses reasonably incurred in investigating,
defending or preparing to defend any such action, proceeding or claim; provided,
however,  that the  Company  shall not be liable in any such case to the  extent
that such loss,  claim,  damage or liability arises out of, or is based upon, an
untrue  statement  made in such  Registration  Statement in reliance upon and in
conformity with written information  furnished to the Company by or on behalf of
such Investor specifically for use in preparation of the Registration  Statement
or the  failure of such  Investor to comply with its  covenants  and  agreements
contained  in  Section  3 or 4.2  hereof or any  statement  or  omission  in any
prospectus that is corrected in any subsequent  prospectus that was delivered to
the Investor prior to the pertinent sale or sales by the Investor.

         (b) Each  Investor  agrees to indemnify  and hold  harmless the Company
(and each person, if any, who controls the Company within the meaning of section
15 of the Securities Act, each officer of the Company who

                                      -10-
<PAGE>

signs the  Registration  Statement  and each  director of the  Company) and each
other  Investor from and against any losses,  claims,  damages or liabilities to
which the Company (or any such officer, director or controlling person) or other
Investor may become subject (under the Securities Act or otherwise),  insofar as
such  losses,  claims,  damages or  liabilities  (or actions or  proceedings  in
respect  thereof)  arise out of, or are based upon a breach of its covenants and
agreements  contained in Section 3 or 4.2 hereof or any statement or omission in
any prospectus that is corrected in any subsequent prospectus that was delivered
to the  Investor  prior to the  pertinent  sale or sales by the  Investor or any
untrue statement or alleged untrue statement of a material fact contained in the
Registration Statement if such untrue statement was made in reliance upon and in
conformity  with  information  furnished  by or on  behalf  of the  indemnifying
Investor in writing  specifically  for use in  preparation  of the  Registration
Statement,  and the  indemnifying  Investor will  reimburse the Company (or such
officer,  director or controlling person) or other Investor, as the case may be,
for any legal or other expenses reasonably incurred in investigating,  defending
or preparing to defend any such action, proceeding or claim.

         (c) Promptly after receipt by any  indemnified  person of a notice of a
claim or the  beginning  of any action in respect  of which  indemnity  is to be
sought  against an  indemnifying  person  pursuant  to this  Section  4.3,  such
indemnified person shall notify the indemnifying person in writing of such claim
or of the  commencement  of such  action,  but the  omission  to so  notify  the
indemnifying  party will not relieve it from any liability  which it may have to
any  indemnified  party  under this  Section 4.3 (except to the extent that such
omission  materially and adversely  affects the indemnifying  party's ability to
defend such action) or from any liability otherwise than under this Section 4.3.
Subject to the provisions  hereinafter  stated, in case any such action shall be
brought against an indemnified person, the indemnifying person shall be entitled
to participate therein, and, to the extent that it shall elect by written notice
delivered to the indemnified party promptly after receiving the aforesaid notice
from such  indemnified  party,  shall be entitled to assume the defense thereof,
with counsel reasonably  satisfactory to such indemnified  person.  After notice
from the  indemnifying  person to such  indemnified  person of its  election  to
assume the defense thereof, such indemnifying person shall not be liable to such
indemnified  person  for  any  legal  expenses  subsequently  incurred  by  such
indemnified person in connection with the defense thereof. In no event shall any
indemnifying  person be liable in respect of any amounts paid in  settlement  of
any action unless the indemnifying  person shall have approved the terms of such
settlement;  provided that such consent shall not be unreasonably  withheld.  No
indemnifying person shall,  without the prior written consent of the indemnified
person, effect any settlement of any pending or threatened proceeding in respect
of  which  any   indemnified   person  is  or  could   have  been  a  party  and
indemnification  could have been sought  hereunder by such  indemnified  person,
unless such settlement  includes an  unconditional  release of such  indemnified
person  from all  liability  on  claims  that  are the  subject  matter  of such
proceeding.

         (d)  If  the  indemnification  provided  for  in  this  Section  4.3 is
unavailable  to or  insufficient  to hold  harmless an  indemnified  party under
subsection  (a) or (b)  above in  respect  of any  losses,  claims,  damages  or
liabilities (or actions or proceedings in respect thereof)  referred to therein,
then each  indemnifying  party shall contribute to the amount paid or payable by
such  indemnified  party  as  a  result  of  such  losses,  claims,  damages  or
liabilities (or actions in respect thereof) in such proportion as is appropriate
to reflect the relative  fault of the Company on the one hand and the  Investors
on the other in  connection  with the  statements  or omissions or other matters
which resulted in such losses,  claims,  damages or  liabilities  (or actions in
respect thereof),  as well as any other relevant equitable  considerations.  The
relative  fault shall be determined by reference to, among other things,  in the
case of an untrue statement, whether the untrue statement relates to information
supplied  by the  Company  on the one hand or an  Investor  on the other and the
parties'  relative intent,  knowledge,  access to information and opportunity to
correct or prevent such untrue  statement.  The Company and the Investors  agree
that it  would  not be just  and  equitable  if  contribution  pursuant  to this
subsection  (d) were  determined by pro rata  allocation  (even if the Investors
were  treated  as one  entity  for  such  purpose)  or by any  other  method  of
allocation  which  does not  take  into  account  the  equitable  considerations
referred  to above in this  subsection  (d).  The  amount  paid or payable by an
indemnified party as a result of the losses,  claims, damages or liabilities (or
actions in respect  thereof)  referred to above in this  subsection (d) shall be
deemed  to  include  any legal or other  expenses  reasonably  incurred  by such
indemnified party in connection with  investigating or defending any such action
or claim.  Notwithstanding  the provisions of this  subsection  (d), no Investor
shall be required to contribute  any amount in excess of the amount by which the
gross amount  received by the Investor from the sale of the Shares to which such
loss relates exceeds the amount of any damages which such Investor has otherwise
been  required to pay by reason of such untrue  statement.  No person  guilty of
fraudulent  misrepresentation  (within  the  meaning  of  section  11(f)  of the
Securities  Act) shall be

                                      -11-
<PAGE>

entitled to  contribution  from any person who was not guilty of such fraudulent
misrepresentation.  The Investors'  obligations in this subsection to contribute
are several in  proportion  to their sales of Shares to which such loss  relates
and not joint.

         4.4 Termination of Conditions and Obligations. The conditions precedent
imposed by Section 4 upon the  transferability  of the  Shares  shall  cease and
terminate as to any particular  number of the Shares when such Shares shall have
been  effectively  registered  under the  Securities  Act and sold or  otherwise
disposed of in accordance  with the intended  method of disposition set forth in
the Registration Statement covering such Shares or at such time as an opinion of
counsel or other evidence reasonably satisfactory to the Company shall have been
rendered to the effect that such conditions are not necessary in order to comply
with the Securities Act.

         5.   Conditions  of  each  Investor's   Obligations  at  Closing.   The
obligations  of each  Investor  under  subparagraph  1.1 of this  Agreement  are
subject to the  fulfillment  on or before the  Closing of each of the  following
conditions,  the waiver of which shall not be effective against any Investor who
does not consent in writing thereto:

         5.1 Representations and Warranties.  The representations and warranties
of the Company contained in Section 2 shall be true and correct on and as of the
Closing with the same effect as though such  representations  and warranties had
been made on and as of the date of the Closing.

         5.2 Performance. The Company shall have performed and complied with all
agreements,  obligations  and  conditions  contained in this  Agreement that are
required to be performed or complied with on or before the Closing.

         5.3 Compliance Certificate.  The Chief Executive Officer of the Company
shall have  delivered  to the Investor at the Closing a  certificate  certifying
that the conditions specified in Sections 5.1, 5.2 and 5.4 have been fulfilled.

         5.4 Qualifications.  All authorizations,  approvals or permits, if any,
of any governmental  authority or regulatory body of the United States or of any
state that are required in connection  with the lawful  issuance and sale of the
shares of Common Stock  pursuant to this  Agreement  shall be duly  obtained and
effective as of the Closing.  The Company shall have obtained all necessary blue
sky  permits  and  qualifications,   or  have  the  availability  of  exemptions
therefrom, required by any state for the offer and sale of the Shares.

         5.5 Opinion of Counsel.  Investors  shall have  received the opinion of
Pillsbury  Winthrop LLP, counsel to the Company,  in  substantially  the form of
Exhibit B, attached hereto.

         6. Conditions of the Company's  Obligations at Closing. The obligations
of the Company to each Investor

         under this Agreement are subject to the  fulfillment  (or waiver) on or
before the Closing of each of the following conditions by the Investor:

         6.1 Representations and Warranties.  The representations and warranties
of such  Investor  contained in Section 3 shall be true on and as of the Closing
with the same effect as though such representations and warranties had been made
on and as of the Closing.

         6.2 Qualifications.  All authorizations,  approvals or permits, if any,
of any governmental  authority or regulatory body of the United States or of any
state that are required in connection  with the lawful  issuance and sale of the
Common Stock pursuant to this Agreement  shall be duly obtained and effective as
of the Closing.

         7. Miscellaneous.

         7.1 Entire  Agreement.  This  Agreement and the  documents  referred to
herein and all Schedules and Exhibits  thereto  constitute the entire  agreement
among the  parties  and no party  shall be liable or bound to any other party in
any  manner  by  any  warranties,   representations   or  covenants   except  as
specifically set forth herein or therein.

                                      -12-
<PAGE>

         7.2 Survival . The parties agree that,  regardless of any investigation
made by the  parties,  the  warranties,  representations  and  covenants  of the
Company  and the  Investors  contained  in or made  pursuant  to this  Agreement
(including,  without limitation,  the provisions of Section 4) shall survive the
execution and delivery of this Agreement and the Closing.

         7.3 Successors and Assigns.  Except as otherwise  provided herein,  the
terms and  conditions  of this  Agreement  shall  inure to the benefit of and be
binding upon the  respective  successors  and assigns of the parties  (including
permitted  transferees  of any Shares).  Nothing in this  Agreement,  express or
implied,  is intended to confer upon any party other than the parties  hereto or
their  respective  successors and assigns any rights,  remedies,  obligations or
liabilities under or by reason of this Agreement,  except as expressly  provided
in this Agreement.

         7.4 Governing  Law. This  Agreement  shall be governed by and construed
under  the laws of the  State of  California  as  applied  to  agreements  among
California   residents  entered  into  and  to  be  performed   entirely  within
California.

         7.5  Counterparts.  This  Agreement  may be  executed  in  two or  more
counterparts,  each of  which  shall be  deemed  an  original,  but all of which
together shall constitute one and the same instrument.

         7.6  Titles  and  Subtitles.  The  titles  and  subtitles  used in this
Agreement  are  used  for  convenience  only  and  are not to be  considered  in
construing or interpreting this Agreement.

         7.7  Notices.   Unless  otherwise  provided,  any  notice  required  or
permitted  under this  Agreement  shall be given in writing  and shall be deemed
given and effective when  delivered  personally,  by telex or telecopier,  or by
overnight  express at the  following  addresses or to such other address as such
party may designate by written notice to the other party in accordance  with the
provisions of this Section:

If to the Company:                    California Micro Devices Corporation
                                      215 Topaz Street
                                      Milpitas, CA 95035-5430
                                      Attention:  Robert V. Dickinson
                                      Fax:  (408) 934-2990

With a copy to:                       Pillsbury Winthrop LLP
                                      2550 Hanover Street
                                      Palo Alto, CA 94304
                                      Attention:  Stephen M. Wurzburg
                                      Fax:  (650) 233-4545

If to an Investor:                    See the signature pages hereto

         7.8  Expenses.  Each party will bear its own  expenses  related to this
Agreement and the transactions contemplated therein.

         7.9 Attorneys'  Fees. If any action at law or in equity is necessary to
enforce or interpret the terms of this Agreement,  the prevailing party shall be
entitled to reasonable  attorneys' fees, costs and  disbursements in addition to
any other relief to which such party may be entitled.

         7.10 Amendments and Waivers.  Any term of this Agreement may be amended
and the observance of any term of this Agreement may be waived (either generally
or in a particular  instance and either  retroactively or  prospectively),  only
with the written  consent of the Company and the holders of more than a majority
of the Shares sold hereunder.

                                      -13-
<PAGE>

         7.11 Severability. If one or more provisions of this Agreement are held
to be unenforceable  under applicable law, such provision shall be excluded from
this Agreement and the balance of this Agreement shall be interpreted as if such
provision  were so excluded  and shall be  enforceable  in  accordance  with its
terms.

         7.12 Rights of the  Investor.  Each holder of the Shares shall have the
absolute  right to exercise or refrain from  exercising any right or rights that
such  holder  may have by  reason of this  Agreement  or any  Shares,  including
without  limitation  the right to consent to the waiver of any obligation of the
Company under this Agreement and to enter into an agreement with the Company for
the purpose of modifying  this  Agreement or any  agreement  effecting  any such
modification,  and such holder shall not incur any liability to any other holder
or  holders  of the  Shares  with  respect  to  exercising  or  refraining  from
exercising any such right or rights.

                     [REMAINDER OF PAGE INTENTIONALLY BLANK]

                                      -14-
<PAGE>

         IN WITNESS WHEREOF,  the parties have executed this Agreement as of the
date first above written.

                                    CALIFORNIA MICRO DEVICES CORPORATION

                                    By /s/ Robert V. Dickinson
                                           President and Chief Executive Officer

                       INVESTOR SIGNATURE PAGES TO FOLLOW

                                      -15-
<PAGE>

                                SIGNATURE PAGE TO

                            STOCK PURCHASE AGREEMENT

                          DATED AS OF NOVEMBER 21, 2001

                                  BY AND AMONG

                      CALIFORNIA MICRO DEVICES CORPORATION

                         AND EACH INVESTOR NAMED THEREIN

         The  undersigned  hereby  executes and delivers  the  California  Micro
Devices  Corporation  Stock Purchase  Agreement (the  "Agreement") to which this
Signature  Page is attached  effective  as of the date of the  Agreement,  which
Agreement and Signature Page,  together with all  counterparts of such Agreement
and  signature  pages of the  other  Investors  named in such  Agreement,  shall
constitute  one and the same  document  in  accordance  with  the  terms of such
Agreement.

                                 Number of Shares:
                                                  ------------------------------

                                 -----------------------------------------------
                                               Print Name of Investor

                                 By
                                   ---------------------------------------------
                                                      Signature

                                 Address:
                                         ---------------------------------------

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

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

                                 Taxpayer Identification Number:
                                                                ----------------

Investor is an "accredited investor" by reason of (check one):

Investor is an entity with gross assets in excess of $5,000,000.
                                                                    ------------

Investor is an individual with a net worth in excess of $1,000,000
                                                                    ------------

Investor is an individual and an Officer or Director of the Company
                                                                    ------------

                                      -16-
<PAGE>

                                   SCHEDULE A

                                    Investors

<TABLE>
<CAPTION>
                                               Number of Shares
             Investor Name                  Purchased from Company     Investment In Dollars
-----------------------------------------   ----------------------     ---------------------
<S>                                                  <C>                   <C>
Columbus Capital Partners, L.P.                      734,000               $3,016,740.00
Columbus Capital Offshore Fund, Ltd.                 366,000               $1,504,260.00
Fremont Concentrated Equity Fund, LLC                300,000               $1,233,000.00
Oceanoar & Co.                                       200,000                 $822,000.00
RS Smaller Company Growth Fund                       150,000                 $616,500.00
Ascend Offshore Fund, Ltd                            136,000                 $558,960.00
Ascend Partners, L.P.                                 32,000                 $131,520.00
Ascend Patners Sapient, L.P.                          32,000                 $131,520.00
Donald L. Waite                                       25,000                 $102,750.00
Wade Meyercord Rollover IRA                            5,000                  $20,550.00
Daniel McCranie                                       10,000                  $41,100.00
Stephen M. Wurzburg                                   10,000                  $41,100.00

TOTAL                                               2,000,000              $8,220,000.00
</TABLE>

                                      SA-1
<PAGE>

                                    EXHIBIT A

                      CALIFORNIA MICRO DEVICES CORPORATION
                         CERTIFICATE OF SUBSEQUENT SALE

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

         RE:      Sale of Shares of Common  Stock of  California  Micro  Devices
                  Corporation   (the   "Company")   pursuant  to  the  Company's
                  Prospectus dated __________, 2001 (the "Prospectus")

Dear Sir/Madam:

         The undersigned hereby certifies, in connection with the sale of shares
of Common Stock of the Company included in the table of Selling  Stockholders in
the  Prospectus,  that  the  undersigned  has sold the  Shares  pursuant  to the
Prospectus and in a manner described under the caption "Plan of Distribution" in
the Prospectus and that such sale complies with all applicable  securities laws,
including,  without  limitation,  the Prospectus  delivery  requirements  of the
Securities Act of 1933, as amended.

         Selling Stockholder (the beneficial owner):

         Record Holder (e.g., if held in name of nominee):
                                                           ---------------------

         Restricted Stock Certificate No.(s):
                                              ----------------------------------

         Number of Shares Sold:
                                ------------------------------------------------

         Date of Sale:
                       ---------------------------------------------------------

         In the event that you receive a stock certificate(s)  representing more
shares of Common Stock than have been sold by the  undersigned,  then you should
return to the  undersigned a newly issued  certificate for such excess shares in
the name of the Record Holder and BEARING A  RESTRICTIVE  LEGEND.  Further,  you
should place a stop transfer on your records with regard to such certificate.

                                        Very truly yours,

                                        By
                                          --------------------------------------

                                        Print Name
                                                  ------------------------------

                                        Title
                                             -----------------------------------

Dated:
      ---------------------------

cc: Pillsbury Winthrop LLP
    2550 Hanover Street
    Palo Alto, California  94304
    Attn: Stephen M. Wurzburg

                                       A-1Exhibit 10.12

                                October 23, 2001
CONFIDENTIAL

Mr. Robert V. Dickinson
President and Chief Executive Officer
California Micro Devices Corporation
215 Topaz Street
Milpitas, CA 95035

Dear Bob:

         This letter agreement (this "Agreement") confirms the understanding and
agreement between Needham & Company, Inc. (the "Placement Agent") and California
Micro Devices Corporation (the "Company") as follows:

         1. The Company  hereby  engages the  Placement  Agent as the  Company's
exclusive  placement agent in connection with the proposed private  placement to
accredited  investors  of  securities  of  the  Company  (the  "Offering").  The
Placement Agent hereby accepts such engagement upon the terms and conditions set
forth in this Agreement.  It is currently contemplated that the Offering will be
structured as a private offering with a planned maximum of 2.0 million shares of
Common Stock of the Company (the "Securities").  The final terms of the Offering
will be determined by negotiation  between the Company and interested  investors
in consultation  with the Placement Agent. This Agreement shall not give rise to
any  commitment  or  obligation  by the  Placement  Agent to purchase any of the
Securities or, except as provided in Section 2 below, to find purchasers for the
Securities.

         2. The Placement Agent will provide the following services:

         (a)      Advise the Company with regard to the size of the Offering and
                  the  structure  and  terms  of the  Securities  that  might be
                  realized in the current market environment;

         (b)      Work  with  the   Company  to  prepare  a  private   placement
                  memorandum (the "Memorandum") and, if deemed desirable, create
                  an  investor  road show  concerning  the  Company for use with
                  qualified   investors.   The  Memorandum  would  not  be  made
                  available to or used in discussions with prospective qualified
                  investors until such Memorandum and such prospective qualified
                  investors  have been approved by the Company.  The  Memorandum
                  that will be initially  circulated will  incorporate  publicly
                  available  documents  and  will  not  include  any  non-public
                  material information about the Company;

         (c)      Assist the Company in identifying  and evaluating  prospective
                  qualified investors;

         (d)      Approach   prospective   qualified   investors   regarding  an
                  investment in the Company; and

         (e)      Work with the Company to develop a  negotiating  strategy  and
                  assist in negotiations with potential qualified investors.

         The Placement Agent will have no authority under this Agreement to bind
the Company in any way to any party.  In  addition,  nothing  contained  in this
Agreement  will  require  the Company to accept the terms of any  proposal.  The
Company  agrees to coordinate  any  discussions  regarding any investment in the
Company with the Placement  Agent and agrees to instruct  Company  directors and
officers that if they receive any inquiry or are
<PAGE>
                                 Exhibit 10.12

--------------------------------------------------------------------------------
California Micro Devices Corporation
October 23, 2001
Page 2
--------------------------------------------------------------------------------
                                                         Needham & Company, Inc.

otherwise  aware of the interest of any third party  concerning an investment in
the Company  during the term of this  Agreement,  they should notify the Company
CEO who, on behalf of the Company,  will promptly  notify the Placement Agent of
the prospective investor and its interest.  The prior sentence will not apply to
potential  strategic  investors who have, or are proposing,  commercial business
relationships  with  the  Company  ("Strategic  Investors")  if  such  Strategic
Investors  express an interest in  investing  in the Company  separate  from the
Offering being placed by Placement Agent.

         3. The Offering will be made by means of the Memorandum, which shall be
prepared and  approved by the Company and its counsel.  The Company will also be
responsible for updating and  supplementing  the Memorandum  prior to closing to
reflect developments  affecting the Company. The Memorandum and any amendment or
supplement thereto will be in form reasonably acceptable to the Placement Agent.
The  Company  agrees  that  the  Placement  Agent  may  rely on the  information
contained in the Memorandum and shall have no responsibility for any information
contained  therein except for any  information  concerning  the Placement  Agent
supplied by the Placement Agent in writing to the Company for inclusion therein.
All other  documents  and  materials  to be used for  circulation  to  investors
(collectively  "Investor  Materials")  in  connection  with the Offering will be
provided by the Company to the Placement Agent in advance, and no such documents
or materials will be provided to investors  without the Placement  Agent's prior
approval.   The  Memorandum  and  all  Investor  Materials  shall  be  the  sole
responsibility  of the Company.  The  Memorandum  will  include all  information
required to be provided to accredited  investors  pursuant to Regulation D under
the  Securities  Act of 1933,  as amended (the  "Securities  Act").  Neither the
Memorandum nor any of the Investor  Materials shall contain an untrue  statement
of a  material  fact or omit to  state a  material  fact  necessary  to make the
statements  therein,  in the light of the  circumstances  under  which they were
made, not misleading.

         4. Each of the Company and the  Placement  Agent  agrees to conduct the
Offering in a manner intended to qualify for the exemption from the registration
requirements  of the  Securities  Act  provided  by  Section  4(2)  thereof  and
Regulation D thereunder  and in a manner  intended to comply with the applicable
state "blue sky" laws and  applicable  securities  laws of other  jurisdictions.
Other than as provided in the prior  sentence,  the Company will be  responsible
for compliance  with the  Securities  Act and  Regulation D and with  applicable
state and other  securities  laws with  respect  to offers and sales made by the
Company  and for  compliance  with the  filing  requirements  and other  actions
required under such laws.

         5. The Company will, at each closing of the Offering, furnish Needham &
Company  with an opinion of counsel  relating to the Company and the Offering in
form and substance reasonably satisfactory to Needham & Company and its counsel.
Such opinion shall include legal assurances regarding compliance with applicable
corporate  and  securities  laws and comfort  with  respect to the  accuracy and
completeness  of the disclosure in the Memorandum and the Investor  Materials as
well as those of the matters  addressed in the opinion  such counsel  renders to
the purchasers in the Offering as Needham & Company shall request.  In addition,
at each  closing  the  Company  will  provide  Needham &  Company  with the same
certificates of the officers of the Company, comfort letters and other documents
and certificates as are furnished to the purchasers in the Offering.

         6. The Company agrees to pay the following fees to the Placement  Agent
for its services rendered under this Agreement:

         (a)      An  advisory  fee of $50,000  payable in cash upon  signing of
                  this Agreement,  which advisory fee, to the extent paid and to
                  the  extent  the  Placement  Agent's  out of  pocket  expenses
                  specified  in  Section  7 total  less than  $50,000,  shall be
                  credited against the fee described in 6(b) below;

         (b)      A fee  equal to 6.0% of the  gross  proceeds  on all  sales of
                  Securities  made in the  Offering,  payable
<PAGE>
                                 Exhibit 10.12

--------------------------------------------------------------------------------
California Micro Devices Corporation
October 23, 2001
Page 3
--------------------------------------------------------------------------------
                                                         Needham & Company, Inc.

                  in cash upon the closing to which such fee relates except that
                  the fee shall be equal to (i) 3% of the gross proceeds on such
                  sales to persons who are  currently  Company  shareholders  or
                  their  affiliates  if  such  persons  invest  in  the  Company
                  separate  from the Offering  being placed by Placement  Agent;
                  (ii) 3% of the gross proceeds on such sales to persons who are
                  friends and family of Company management;  and (iii) 0% of the
                  gross  proceeds  on such sales to  Strategic  Partners if such
                  Strategic  Investors  invest in the Company  separate from the
                  Offering being placed by Placement Agent;

         (c)      Warrants  (the  "Warrants"),  issuable  at the  first  and any
                  subsequent closing of the sales of the Securities, to purchase
                  such number of Securities  equal to one-half of the percentage
                  specified in 6(b) of the Securities sold in the Offering.  The
                  Warrants  shall be  exercisable  at an exercise price equal to
                  the price per share of the Securities sold in the Offering and
                  shall   contain   other   customary   provisions,    including
                  anti-dilution    provisions   and   demand   and   "piggyback"
                  registration  rights  similar to those  contained  in warrants
                  issued to investors in the Offering. The Warrants shall have a
                  term identical to that of warrants  issued to investors in the
                  Offering and if, but only if, the investor warrants have a net
                  issuance  (cashless  exercise)  provision,  then so shall  the
                  Warrants;  provided however, that if no warrants are issued to
                  investors in the Offering, then the term of the Warrants shall
                  be  five  (5)  years  and the  Warrants  shall  contain  a net
                  issuance (cashless exercise) provision; and

         (d)      If during the  nine-month  period  following the expiration or
                  termination  of this  Agreement  other than by the Company for
                  cause (cause  shall be deemed to exist if Placement  Agent has
                  not cured a material  breach  within  five (5)  business  days
                  notice thereof) or by the Placement Agent for convenience, the
                  Company  sells any equity  securities to any investor (i) that
                  the  Placement  Agent  identified to the Company prior to such
                  expiration or  termination  and which the Company  approved to
                  receive the  Memorandum,  (ii) as to which the Placement Agent
                  advised the Company prior to such  expiration or  termination,
                  or (iii) with which the  Company  or the  Placement  Agent had
                  discussions prior to such expiration or termination,  the fees
                  payable  pursuant  to clauses  (b) and (c) of this  paragraph;
                  provided,  however,  that if no  Securities  were  sold in the
                  Offering, no fees shall be payable in connection with the sale
                  of equity  securities  to any  investor who was not brought to
                  the initial  attention of the Company by the Placement  Agent.
                  In these regards, within thirty (30) days of the expiration or
                  termination  of this  Agreement,  the  Placement  Agent  shall
                  notify the Company of those persons (A) the Placement Agent so
                  identified, advised the Company, or had discussions with prior
                  to  expiration  or  termination  of this  Agreement and (B) if
                  there were no securities  sold in the Offering,  the Placement
                  Agent brought to the initial attention of the Company.

         7. In addition to any fees that may be payable to the  Placement  Agent
under this  Agreement,  whether or not there is a closing of the  Offering,  the
Company agrees to reimburse the Placement Agent,  upon request made from time to
time, for all its reasonable  out-of-pocket expenses incurred in connection with
this  engagement  that  exceed a total of  $50,000  and are less than a total of
$100,000,  including the reasonable fees and disbursements of its legal counsel.
The  foregoing  costs,  expenses  and charges will be paid by the Company to the
Placement  Agent promptly upon receipt by the Company of an invoice(s)  from the
Placement Agent.

         8.  (a) The  Company  will  furnish  or cause  to be  furnished  to the
Placement Agent such information as the Placement Agent believes  appropriate to
its   assignment   and  to  satisfy   its  due   diligence   requirements   (the
"Information"). The Company recognizes and confirms that the Placement Agent (i)
will use and rely primarily on the Information and on information available from
generally  recognized public sources in
<PAGE>
                                 Exhibit 10.12

--------------------------------------------------------------------------------
California Micro Devices Corporation
October 23, 2001
Page 4
--------------------------------------------------------------------------------
                                                         Needham & Company, Inc.

performing  the  services   contemplated   by  this  Agreement   without  having
independently  verified the same,  (ii) does not assume  responsibility  for the
accuracy or  completeness of the  Information  and such other  information,  and
(iii) will not make an appraisal  of the Company or its  business or assets.  To
the best of the  Company's  knowledge,  the  Information  to be furnished by the
Company,  when delivered,  will be true and correct in all material respects and
will not contain any material misstatement of fact or omit to state any material
fact  necessary to make the statements  contained  therein not  misleading.  The
Company will promptly  notify the  Placement  Agent if it learns of any material
inaccuracy  or  misstatement  in, or material  omission  from,  any  Information
theretofore delivered to the Placement Agent.

         (b)  All  such  Information,  whether  oral  or  written,  will be kept
confidential  by Needham & Company except for Information (i) that is already or
becomes  public  through  no  breach  of  this  provision,  (ii)  that is in the
Memorandum or in materials delivered by the Company to prospective investors, or
that the  Company  agrees  may be  disclosed,  (iii)  that  Needham & Company is
required to disclose by applicable  law,  regulation or legal  process,  or (iv)
that becomes available to Needham & Company on a  non-confidential  basis from a
third party who is not bound by a confidentiality obligation to the Company; and
provided,  further, that the Information may be disclosed to Needham & Company's
directors,   officers,   employees,  agents,  advisors  and  representatives  in
connection with its engagement  hereunder with a need to know such  Information,
who shall be informed of the  confidential  nature of the  Information  and that
such Information is subject to a confidentiality  agreement or if, on the advice
of counsel, Needham & Company is compelled to disclose such Information.

         9. The Company agrees to indemnify the Placement  Agent as set forth in
the Placement Agent's standard indemnity  provisions attached hereto as Addendum
A;  provided,  however,  that if a third  party  asserts  a  claim  against  the
Placement  Agent  related to the  Offering,  the Company shall not be liable for
fees or expenses of counsel or  investigators  of the Placement  Agent which are
incurred  prior to the  Placement  Agent  giving  notice to the  Company of such
claim.

         10. The  Placement  Agent's  engagement  hereunder may be terminated by
either the Company or the  Placement  Agent at any time upon  written  notice to
that effect to the other  party,  it being  understood  that the  provisions  of
paragraphs  6, 7, 8(b),  9, 11 and 12 of this  Agreement  shall survive any such
termination.  The Company may in its discretion postpone,  modify or abandon the
Offering prior to closing. The Placement Agent may decline to participate in the
Offering if the  Placement  Agent  reasonably  determines  that the Offering has
become impractical or undesirable.

         11.  The  invalidity  or  unenforceability  of any  provision  of  this
Agreement  shall  not  affect  the  validity  or  enforceability  of  any  other
provisions of this Agreement, which shall remain in full force and effect.

         12. This Agreement  constitutes the entire agreement and  understanding
of the parties  concerning  its subject  matter,  superseding  all prior oral or
written  agreements  and  understandings  concerning  its subject  matter.  This
Agreement may not be amended or modified except in writing signed by each of the
parties.  This  Agreement  shall be governed by and  construed  and  enforced in
accordance  with the laws of the  State of New York  without  giving  effect  to
principles  of  conflicts  of law.  The Company and the  Placement  Agent hereby
irrevocably and unconditionally  consent to submit to the exclusive jurisdiction
of the courts of the State of New York and of the United States  District Courts
located in the City of New York for any  lawsuits,  claims or other  proceedings
arising out of or relating to this  Agreement and agree not to commence any such
lawsuit,  claim or other proceeding  except in such courts.  The Company and the
Placement Agent hereby  irrevocably and  unconditionally  waive any objection to
the laying of venue of any lawsuit, claim, or other proceeding arising out of or
relating to this  Agreement in the courts of the State of New York or the United
States  District  Courts  located in the City of New York,  and  hereby  further
irrevocably  and  unconditionally  waive  and agree not to plead or claim in any
such court
<PAGE>
                                 Exhibit 10.12

--------------------------------------------------------------------------------
California Micro Devices Corporation
October 23, 2001
Page 5
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                                                         Needham & Company, Inc.

that any such lawsuit,  claim or other proceeding  brought in any such court has
been brought in an inconvenient  forum.  Any right to trial by jury with respect
to any  lawsuit,  claim or other  proceeding  arising out of or relating to this
Agreement or the  services to be rendered by the  Placement  Agent  hereunder is
expressly and irrevocably waived.

         Please   confirm  that  the  foregoing  is  in   accordance   with  our
understanding  by signing and  returning  to us the  enclosed  duplicate of this
letter.

                                           Sincerely yours,

                                           NEEDHAM & COMPANY, INC.

                                           By: /s/ Chad W. Keck
                                                   Managing Director

Agreed to and Accepted
as of the date set forth above:

CALIFORNIA MICRO DEVICES CORPORATION

By: /s/ Robert V. Dickinson
    President and Chief Executive Officer

<PAGE>

                                  Exhibit 10.12

                                   Addendum A

     This  Addendum A is  attached to and  incorporated  by  reference  into the
foregoing letter agreement (the "Agreement").  Capitalized terms used herein and
not otherwise  defined herein shall have the meanings  assigned to such terms in
the Agreement.

     The Company agrees to indemnify and hold harmless Needham & Company and its
affiliates, the respective directors,  officers, employees and agents of Needham
& Company and its affiliates, and each other person, if any, controlling Needham
& Company or any of its affiliates within the meaning of the federal  securities
laws  (Needham & Company  and each such other  person or entity are  hereinafter
referred  to as an  "Indemnified  Person")  from and against any and all losses,
claims,  damages,  expenses  (including fees and  disbursements  of counsel) and
liabilities  (or  actions  or  proceedings  in  respect  thereof)  (collectively
"Losses")  caused by,  relating  to,  based upon or arising out of (i) Needham &
Company's engagement under the Agreement,  any transaction  contemplated by such
engagement or any Indemnified  Person's role in connection therewith (all of the
foregoing are collectively  hereafter  referred to as the  "Engagement") or (ii)
any untrue statement or alleged untrue statement of a material fact contained in
any offering materials, including but not limited to private placement memoranda
used to offer  securities of the Company in a  transaction  subject to Needham &
Company's  engagement  under the Agreement,  as such materials may be amended or
supplemented  (and  including  but not  limited  to any  documents  deemed to be
incorporated  therein  by  reference),  or caused  by any  omission  or  alleged
omission  to  state  therein  a  material  fact  necessary  in order to make the
statements  therein,  in the light of the  circumstances  under  which they were
made, not misleading;  provided, however, that with respect to clause (i) above,
such  indemnification  obligation shall not apply to any such Loss to the extent
it is  found  in a final  judgment  by a court of  competent  jurisdiction  (not
subject to further  appeal) to have  resulted  primarily  and directly  from the
gross  negligence  or  willful  misconduct  of the  Indemnified  Person  seeking
indemnification. The Company agrees to reimburse each Indemnified Person for all
expenses  (including fees and  disbursements of counsel) as they are incurred by
such Indemnified Person in connection with investigating,  preparing, defending,
paying,  settling or compromising any claim, action,  suit,  proceeding or Loss,
whether or not in connection with an action in which any Indemnified Person is a
named party.  The Company also agrees that an Indemnified  Person shall not have
any  liability  (whether  direct or indirect,  in contract or  otherwise) to the
Company  or  its  affiliates,   directors,   officers,   employees,   agents  or
shareholders,  directly or indirectly for or in connection  with the Engagement,
except for any Losses that are found in a final judgment by a court of competent
jurisdiction  (not subject to further  appeal) to have  resulted  primarily  and
directly from such Indemnified  Person's gross negligence or willful misconduct.
In no event,  regardless  of the legal theory  advanced,  shall any  Indemnified
Person be liable for any consequential,  indirect, incidental or special damages
of any nature.

     If any action, suit, proceeding, or investigation is commenced, as to which
such  Indemnified   Person  proposes  to  demand  such   indemnification,   such
Indemnified  Person  shall  notify  the  Company  with  reasonable   promptness;
provided,  however  that any  failure by such  Indemnified  Person to notify the
Company shall not relieve the Company from its obligations hereunder,  except as
and to the extent the failure of such timely notice  materially  prejudices  the
Company.  If the Company so elects or at the request of an  Indemnified  Person,
the  Company  will  assume  the  defense of such  action,  suit,  proceeding  or
investigation,  including the employment of counsel  reasonably  satisfactory to
such  Indemnified  Person  and the  payment  of all  fees and  expenses  of such
counsel.  In  the  event,  however,  that  such  Indemnified  Person  reasonably
determines  in its  judgment  that  representation  by common  counsel  would be
inappropriate due to actual or potential  differing  interests or if the Company
fails to assume the defense of the action, suit,  proceeding or investigation in
a timely manner,  then such  Indemnified  Person may employ separate  counsel to
represent or defend it in any such action, suit, proceeding or investigation and
the  Company  will pay the fees and  disbursements  of such  counsel;  provided,
however, that the Company will not be required to pay the fees and disbursements
of  more  than  one  separate  counsel  for  all  Indemnified   Persons  in  any
jurisdiction in any single action or proceeding. In any action or proceeding the
defense of which the Company assumes,  an Indemnified Person will have the right
to  participate  in  such  litigation  and to  retain  its own  counsel  at such
Indemnified  Person's  own  expense.  The  Company  shall not be liable  for any
settlement of any action or proceeding effected without its written consent, but
if settled with such consent the Company  agrees to  indemnify  the  Indemnified
Party from and against any Loss by reason of such settlement.  The Company shall
not settle any claim,  action,  suit or proceeding  related to the Engagement or
the Agreement  unless the settlement also includes an  unconditional  release of
all Indemnified Persons from all liabilities arising out of such claim,  action,
suit or proceeding.

     If the  indemnification  sought by an Indemnified Person hereunder is found
in a final judgment by a court of competent jurisdiction (not subject to further
appeal) to be unenforceable,  even though the express  provisions hereof provide
for  indemnification  in such case,  then the Company  shall  contribute  to the
Losses for which such  indemnification is held unavailable in such proportion as
is appropriate to reflect the relative benefits received by the Company,  on the
one hand,  and Needham & Company,  on the other  hand,  in  connection  with the
Engagement reflected in the Agreement, or if such allocation is not permitted by
applicable  law, in such  proportion as is  appropriate  to reflect not only the
relative  benefits  but the  relative  fault of the  Company on the one hand and
Needham & Company on the other hand, in connection with the statements,  acts or
omissions which resulted in such Losses, as well as any other relevant equitable
considerations.  The respective  relative  benefits  received by the Company and
Needham & Company in connection  with any  transaction  shall be deemed to be in
the same proportion as the aggregate fee paid or payable to Needham & Company in
connection with the transaction bears to the total value of the transaction. The
relative  fault of the  Company  and Needham & Company  shall be  determined  by
reference to, among other things,  whether the statements,  actions or omissions
to act were by the  Company  or  Needham &  Company  and the  parties'  relative
intent,  knowledge,  access to information and opportunity to correct or prevent
such action or omission to act. Notwithstanding the foregoing, in no event shall
the  aggregate  contribution  of all  Indemnified  Persons  for  all  Losses  in
connection with any transaction  exceed the amount of fees actually  received by
Needham & Company pursuant to the Agreement.

     If  multiple  claims  are  brought  against  an  Indemnified  Person  in an
arbitration,  with respect to at least one of which indemnification is permitted
under  applicable law and provided for under the  Agreement,  the Company agrees
that any arbitration award shall be conclusively deemed to be based on claims as
to which indemnification is permitted and provided for,
<PAGE>

except to the extent the arbitration  award expressly  states that the award, or
any portion thereof,  is based solely on a claim as to which  indemnification is
not available.

     The  obligations  of the Company  referred to above shall be in addition to
any liability which the Company may otherwise have and shall be binding upon and
inure  to  the  benefit  of  any   successors,   assigns,   heirs  and  personal
representatives of any Indemnified Person and the Company.  Neither  termination
of  the  Agreement  nor  completion  of  the   Engagement   shall  affect  these
indemnification provisions which shall then continue in full force and effect.

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