Document:

Separation Agreement

 Exhibit 10.1 
 SEPARATION AGREEMENT 
  
 This Separation Agreement (“Agreement”) is made and entered into this 17th day of December, 2004, by and between James R. Conaty (“I”, “Me”, or “My” as the case may be) and H.B. Fuller Company,
a Minnesota corporation, with offices at 1200 Willow Lake Boulevard, P.O. Box 64683, St. Paul, Minnesota 55164-0683 and all of its divisions, subsidiaries, affiliates, and all of its and their agents, officers, employees, directors, and shareholders
(hereinafter collectively “Fuller”): 
  
 WHEREAS, Fuller has made a business decision to terminate my employment as Group President, General Manager Global Adhesives; and 
  
 WHEREAS, I have elected to take early retirement effective December 31, 2004; and 
  
 WHEREAS, I have agreed, in lieu of severance, to accept the benefits, obligations and payments provided herein;
 
  
 NOW, THEREFORE, in consideration of the
promises, agreements and covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which is hereby expressly acknowledged, the undersigned hereby agree and promise as follows: 
  
 1. Recitals. The foregoing recitals are hereby
incorporated as if fully set forth herein. 
  
 2.
Employment and Termination. I agree that My employment with Fuller will end December 31, 2004. I further agree that effective immediately upon my execution of this Agreement, I will offer my resignation as an officer and director, as
applicable, of all Fuller-controlled entities, including subsidiaries and joint ventures such as EFTEC North America LLC. It is further understood and agreed that I will not be required to actively perform My current duties after the date of this
Agreement, but that I will remain available as necessary and reasonably requested by Fuller through December 31, 2004 to assist with transitional issues. I understand and acknowledge that My employment with Fuller may be terminated earlier than
December 31, 2004, but only for gross violation of working rules or gross misconduct. I further understand and agree that this Agreement will become automatically null, void and unenforceable in the event I am so terminated. 
  
 3. Separation Payment. Upon the termination of my
employment on December 31, 2004, I agree to provide Fuller with an executed Release Agreement in the form attached hereto as Exhibit A. In return, and in consideration of the promises, agreements and covenants contained herein, Fuller agrees to pay
Me the sum of $504,034.00 (the “Separation Payment”). Unless there is a timely rescission of this Agreement as provided herein, the Separation Payment shall be paid in one lump sum (less state and federal taxes and other standard legal
deductions) following termination of My employment, upon Fuller’s receipt of this signed Agreement and within ten business days after expiration of the rescission periods referenced herein. In no case will this payment be made prior to January
31, 2005. Except as expressly provided herein, it is understood and agreed that I am waiving and forfeiting any right, claim or interest to any severance payment under any Fuller plan, including, specifically, the H.B. Fuller Company Severance Pay
Plan. 

 4. Benefits. Except as otherwise stated herein, Fuller agrees that, until termination of My
employment, I will continue to be eligible for participation as a full time employee under Fuller’s benefit programs, including all key manager benefits. I understand and agree that My rights to benefits under any Fuller benefit plan, including
but not limited to Fuller’s Retirement Plan and Fuller’s Supplemental Executive Retirement Plan, are governed and determined by the rules of said plans, as they may exist from time to time. It is further understood and agreed that, except
as expressly stated herein, I am not waiving any rights to vested employee benefits extended under any Fuller plan. 
  
 5. Paid Time Off. It is agreed that I will receive payment for all accrued but unused Paid Time Off for fiscal year ending 2004. It is
anticipated that this amount will equal approximately $31,963.50. Unless there is a timely rescission of this Agreement as provided herein, this payment shall be paid in one lump sum (less state and federal taxes and other standard legal deductions)
following termination of My employment, upon Fuller’s receipt of this signed Agreement and within ten business days after expiration of the rescission periods referenced herein. I acknowledge that I will not earn or accrue any Paid Time Off for
fiscal year 2005. 
  
 6. T&E Reporting. I agree
to provide Fuller with all documentation necessary to reconcile My outstanding Travel and Expense Reporting, and will authorize Fuller to deduct from my Separation Pay any amounts for any non-reimbursable expenses or expenses that do not comply with
Fuller’s policies regarding Travel and Expense Reporting. 
  
 7. Outplacement Services. Fuller agrees to pay up to $25,000.00 for outplacement services and travel related to outplacement utilized by Me. Fuller shall at its election either reimburse Me for such amounts upon proper
documentation, or pay the outplacement services provider directly on a receipt or invoice basis from the outplacement services provider. 
  
 8. Medical and Dental Benefits Continuation. I understand My eligibility for medical and dental benefits is controlled by the terms
of any applicable plans, including the H.B. Fuller Supplemental Employee Retirement Plan or the EFTEC retirement plan. 
  
 9. Professional Service Fees. Fuller agrees to provide Me with an amount of $7,500 for professional services such as tax planning.

  
 10. Bonus Payment. I understand and
acknowledge that I am not eligible for any short-term incentive bonus for fiscal year 2004. 
  
 11. Grants and Awards. Except as otherwise stated herein, I understand and agree that My rights to any long term incentives pursuant to any Fuller grant or award, including, but not limited to,
Performance Units and Stock Options (summarized and attached hereto as Exhibit B), shall be governed and determined by the terms of such grant or award, including the terms and conditions of the plan or plans pursuant to which the grant or award was
made. Fuller agrees that I will be eligible for potential payment of outstanding Performance Units earned through the performance period for the fiscal year ending 2004. 
  

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 12. Restricted Stock. The shares (plus accrued dividends) of restricted Common Stock
of H.B. Fuller Company granted to Me pursuant to written award agreements dated August 3, 1995 and June 14, 1996, as amended (2,400 each for a total of 4,800 shares) (summarized and attached hereto as Exhibit B), shall vest, and the applicable
restricted periods shall end effective the date of termination of My employment. 
  
 13. Key Employee Deferred Compensation Plan. My participation in the Key Employee Deferred Compensation Plan (“KEDC”) will end as of the date of my termination. Distributions under the
KEDC will be made pursuant to the terms of that plan. 
  
 14. Executive Stock Purchase Program. I understand and acknowledge that I have $552,677.87, outstanding under Fuller’s Executive Stock Purchase Program as of August 31, 2004, and that the full amount of principal
and interest under My loan under this program is due and payable on or before January 11, 2006. 
  
 15. Key Manager Car Allowance. I understand and acknowledge that all benefits under the Key Manager Car Allowance will end as of the
date of my termination, and that the applicable lease will be ended on such date. 
  
 16. Laptop Computer. Fuller agrees to transfer title to my laptop computer and to provide me with e-mail access until December 31, 2004. 
  
 17. Office Furniture. Fuller agrees to arrange for reasonable packing and shipping of office furniture that I
own and have used in my Fuller office. 
  
 18. Executive
Physical Examination. Fuller agrees that I will be eligible for Fuller’s standard executive physical examination program during 2005. 
  
 19. Confidential Information. I agree that, from and after the date this Agreement is executed by both parties, I will hold in strict
confidence and will not reveal or disclose to anyone other than family members, spouse or significant other, attorneys, accountants, tax consultants, or as may be required by law or court process, any information, facts or occurrences relating to
the negotiations leading to this Agreement, the existence of this Agreement, or the contents of this Agreement. Furthermore, I agree that, from and after the date this Agreement is executed by both parties, all the information, facts, or occurrences
relating to formulas, processes, customer lists, computer user identifiers and passwords, and all purchasing, engineering, accounting, marketing and other information, not generally known and proprietary to Fuller, relating to research, development,
manufacturing, marketing or sale of Fuller’s products shall be and are hereby deemed to be confidential information (“Confidential Information”) of the parties to this Agreement. I agree, from and after the date this Agreement is
executed by both parties, not to use or disclose any Confidential Information at any time during or after My employment by Fuller, except in the performance of My duties on behalf of Fuller, or by written consent of Fuller or as may be required by
law or court process. Upon termination 
  

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 of My employment, I agree that all Confidential Information, including all copies, excerpts and summaries in My
possession or control, as well as other Fuller property not transferred herein shall be immediately returned to Fuller. 
  
 20. Non-Competition. For a period of one year following the date of termination of My employment, I will not serve, directly or
indirectly (individually or as an officer, director, employee, consultant, partner or co-venturer, or as a stockholder or other proprietor owning a beneficial interest of more than five percent (5%)) in any enterprise which is competitive in any
manner with any business at the time carried on by Fuller, without the written consent of Fuller. This means, by way of illustration but not limitation, that I will not sell or solicit orders for any “Conflicting Product” to or from any
customer of Fuller, and that I will not serve any organization or person engaged in the development, production or sale of “Conflicting Product.” For the purposes of this illustration, “Conflicting Product” means any product,
process, equipment, concept or service (in existence or under development) of any person or organization which resembles or competes with a product, process, equipment, concept or service of Fuller or concerning which I acquired Confidential
Information at any time through My work with Fuller. 
  
 In the event I am
presented with an opportunity that I believe might violate this covenant, I can submit in writing to Fuller, in care of the Chairman of the Board, President and Chief Executive Officer, a description of the opportunity, asking for Fuller’s
written consent to pursue that opportunity. Fuller agrees to promptly reply in writing to any such written request. 
  
 I understand that this covenant is not intended to limit My subsequent employment in any industry or for any employer producing a product or service different from
Fuller’s. I acknowledge and represent that I have substantial experience and knowledge such that I can readily obtain employment which does not violate this covenant. 
  
 21. Non-Solicitation. For a period of one year following the date of termination of My employment, I
agree that I will not induce, attempt to induce, or in any way knowingly assist or act in concert with any other person or organization in inducing or attempting to induce any employee or agent of Fuller to terminate such employee or agent’s
relationship with Fuller. During such period of time, I agree that I will not make any offers of employment or knowingly assist or act in concert with any other person or organization in making offers of employment to any person who, at the time of
such offer, is to My knowledge currently in an employment or agency relationship with Fuller. 
  
 22. Non-Disparagement. The parties agree that they will not make statements, publicly or otherwise, which disparage, defame or are adverse to their respective interests. 
  
 23. Information, Assistance, Testimony. I understand that
Fuller may occasionally ask me to provide information, assistance or testimony regarding litigation or legal matters, and I agree to cooperate, provided that Fuller reimburses me for any out-of-pocket expenses, and pays me reasonable compensation in
the event that my attendance at a trial or deposition or similar proceeding is required for more than five days. 
  

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 24. Remedies. The parties hereto acknowledge that the provisions of this Agreement
are reasonable and necessary for their mutual protection and that any violation of this Agreement may cause irreparable harm for which the non-breaching party would be entitled to temporary or permanent injunctive relief, and for money damages
insofar as they can be determined. In the event of a breach of any of the provisions of this Agreement, the non-breaching party shall, if it prevails in a lawsuit against the breaching party, also be entitled to costs and reasonable attorneys’
fees to enforce its rights hereunder. 
  
 25.
Jurisdiction and Venue. This Agreement shall be governed by the laws of the State of Minnesota and I hereby consent to the jurisdiction and venue of the courts of the State of Minnesota for the resolution of any disputes arising out
of, or related to, this Agreement, including breach and formation (fraud), to the exclusion of the courts of any other state. 
  
 26. Integration and Modification. Except as provided herein, this Agreement represents the entire agreement between Me or anyone who
has or obtains any legal rights or claims through Me and Fuller with respect to the subject matter covered herein. It replaces any other oral or written agreements, representations, promises or discussions between Me and Fuller. This Agreement may
not be changed orally. To be valid, any waiver or modification must be in writing and signed by all of the parties hereto. If any part of this Agreement is declared by a court of competent jurisdiction to be illegal, invalid or unlawful, in whole or
in part, then said part shall be modified or suspended, as the case may require, but only to the extent necessary and all other parts will remain valid and in full force and effect. This Agreement may be executed in any number of counterparts which,
taken together, shall constitute but one Agreement. A copy of this Agreement is as valid as the original. 
  
 THIS IS A FINAL AGREEMENT AND RELEASE. READ BEFORE SIGNING. 
  

					
	Dated: December 17, 2004	 	H.B. FULLER COMPANY
			
	 	 	By:	 	 /s/ Patricia L. Jones

	 	 	Its:	 	Senior Vice President and CAO
			
	Dated: 17 December, 2004	 	 	 	 /s/ James R. Conaty

	 	 	 	 	James R. Conaty
	 	 	 	 	1314 Marquette Avenue
	 	 	 	 	Minneapolis, MN 55403

  

 5 

 EXHIBIT A 
  

Release Agreement 
  
 In consideration of the promises, agreements and covenants contained herein, I, on behalf of Myself, My heirs, assigns, spouses, representatives, and agents do hereby
fully release and forever discharge Fuller, from any and all liability, remedies, claims for relief, demands, actions, causes of action, suits, grievances, arbitrations and administrative proceedings under every local, state, or federal law,
statute, ordinance or common-law, and any and all other claims of any kind or nature whatsoever occurring as of the date of this Agreement, whether in law or in equity, contract or tort, known or unknown, asserted or unasserted, suspected or
unsuspected, of any kind or nature whatsoever which I may now have or hereafter have or claim to have against Fuller for, upon, or by reason of any matter, event, cause or thing occurring prior to the date of this Agreement, including without
limitation, any and all claims of any kind arising out of or in anyway relating to My employment with Fuller, and further including without limitation: 
  
 (i) Any claims, demands, or causes of action arising under, or any claim for relief on the basis of, an alleged violation of the Civil Rights Act
of 1991, Title VII of the Civil Rights Act of 1964, the Age Discrimination In Employment Act of 1967, as amended, the Employee Retirement Income Security Act, Title 42 U.S. Section 1985, the Americans With Disabilities Act, the Older Workers Benefit
Protection Act, the Minnesota Human Rights Act, and/or any other federal, state or local statute, ordinance, or regulation dealing in any way with employment or employment discrimination; 
  
 (ii) Any claims, demands, or causes of action on the basis of any breach of an express or implied employment contract
under the common-law of the State of Minnesota, or any other state, or on the basis of any claim of defamation, wrongful discharge and/or any other common-law, statute or tort or any other claim whatsoever arising out of or in any way relating to My
employment with Fuller or any other occurrence prior to the date of this Agreement, but excluding claims which I cannot by law waive and claims for breach of this Agreement. 
  
 It is specifically agreed and understood that I am not waiving or releasing any right I may have under Fuller’s corporate undertakings
or pursuant to any applicable policy of insurance, to defense and/or indemnity for third party claims. 
  
 I warrant that I am legally competent to execute this Release and accept full responsibility therefore. I also agree that I am signing this Release voluntarily and with full knowledge of its significance and legal
consequence. I also agree that I have been advised to consult with any attorney before signing this Agreement and that Fuller has given Me a full twenty-one (21) days within which to consider this Agreement, before signing below, if I so desire.
 
  
 I understand that I may rescind (that is, cancel) this Agreement within
seven (7) calendar days of signing it to reinstate claims under the Age Discrimination In Employment Act of 1967 and within fifteen (15) calendar days to reinstate claims under the Minnesota Human Rights Act. To be effective, My rescission must be
in writing and delivered to Fuller in care of the Chairman of 
  

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 the Board, President and Chief Executive Officer, 1200 Willow Lake Boulevard, P.O. Box 64683, St. Paul, Minnesota
55164-0683. If delivered by mail, such rescission may be postmarked within the seven (7) or fifteen (15) day period, respectively, and sent by Certified Mail, Return Receipt Requested to H.B. Fuller Company at 1200 Willow Lake Boulevard, P.O. Box
64683, St. Paul, Minnesota 55164-0683, attention Chairman of the Board, President and Chief Executive Officer. 
  
 I understand that timely rescission of any portion of this Agreement as provided herein, shall constitute a material breach of this Agreement resulting in immediate withdrawal and rescission of all promises,
agreements and covenants contained herein. 
  

			
	Dated: December 31, 2004	 	  

	 	 	James R. Conaty
	 	 	1314 Marquette Avenue
	 	 	Minneapolis, MN 55403

  

 7 

 EXHIBIT B 
  

Stock Award Handling 
  

												
	 	  	 	  	 	  	 	  	 	  	 Award Handling
Approved By Compensation
Committee

	 Grant Date

	  	 Grant
 Type

	  	Shares/Options
Outstanding

	  	Option
Price

	  	 Original Vest Date

	  	 Separation Date
 12/31/2004

	08/03/95	  	Restricted Stock	  	2,400	  	 	N/A	  	08/03/05	  	Vests 12/31/2004
						
	06/14/96	  	Restricted Stock	  	2,400	  	 	N/A	  	06/14/06	  	Vests 12/31/2004
						
	12/02/98	  	NQSO’s	  	9,920	  	$	21.5000	  	All options vested	  	Exercisable up to 12/02/2008
						
	12/01/99	  	NQSO’s	  	7,086	  	$	27.3750	  	All options vested	  	Exercisable up to 12/01/2009
						
	12/07/00	  	NQSO’s	  	15,152	  	$	18.6250	  	 11,364 vested
 3,788 vest 12/07/04
	  	Vests upon retirement Exercisable up to 12/07/2010
						
	01/17/02	  	NQSO’s	  	8,965	  	$	25.9500	  	 4,482 vested
 2,241 vest 01/17/05
 2,242 vest 01/17/06
	  	Vests upon retirement Exercisable up to 01/17/2012
						
	12/09/02	  	NQSO’s	  	8,193	  	$	27.9000	  	 2,048 vested
 2,048 vest 12/09/04
 2,048 vest 12/09/05
 2,049 vest 12/09/06
	  	Vests upon retirement Exercisable up to 12/31/2007

  

 8Amended and Restated 2001  Stock Incentive Plan and form of agreement

 EXHIBIT 10.2 
  
 PERICOM SEMICONDUCTOR CORPORATION 
  
 2001 STOCK INCENTIVE PLAN 
  
 (as amended and restated December 15, 2004) 
  
 1. Purposes of the Plan. The purposes of this Stock Incentive Plan are to attract and retain the best available personnel, to provide additional
incentive to Employees, Directors and Consultants and to promote the success of the Company’s business. 
  
 2. Definitions. As used herein, the following definitions shall apply: 
  
 (a) “Administrator” means the Board or any of the Committees appointed to administer the Plan. 

 
 (b) “Affiliate” and “Associate” shall
have the respective meanings ascribed to such terms in Rule 12b-2 promulgated under the Exchange Act. 
  
 (c) “Applicable Laws” means the legal requirements relating to the administration of stock incentive plans, if any, under applicable
provisions of federal securities laws, state corporate and securities laws, the Code, the rules of any applicable stock exchange or national market system, and the rules of any foreign jurisdiction applicable to Awards granted to residents therein.

  
 (d) “Award” means the grant of an Option,
SAR, Dividend Equivalent Right, Restricted Stock, Performance Unit, Performance Share, or other right or benefit under the Plan. 
  
 (e) “Award Agreement” means the written agreement evidencing the grant of an Award executed by the Company and the Grantee, including any
amendments thereto. 
  
 (f) “Board” means the
Board of Directors of the Company. 
  
 (g)
“Cause” means, with respect to the termination by the Company or a Related Entity of the Grantee’s Continuous Service, that such termination is for “Cause” as such term is expressly defined in a then-effective written
agreement between the Grantee and the Company or such Related Entity, or in the absence of such then-effective written agreement and definition, is based on, in the determination of the Administrator, the Grantee’s: (i) refusal or failure to
act in accordance with any specific, lawful direction or order of the Company or a Related Entity; (ii) unfitness or unavailability for service or unsatisfactory performance (other than as a result of Disability); (iii) performance of any act or
failure to perform any act in bad faith and to the detriment of the Company or a Related Entity; (iv) dishonesty, intentional misconduct or material breach of any agreement with the Company or a Related Entity; or (v) commission of a crime involving
dishonesty, breach of trust, or physical or emotional harm to any person. At least 30 days prior to the termination of the Grantee’s Continuous Service pursuant to (i) or (ii) above, the Administrator shall provide the Grantee with notice of
the Company’s or such Related Entity’s intent to terminate, the reason therefor, and an opportunity for the Grantee to cure such 
  

 1 

 defects in his or her service to the Company’s or such Related Entity’s satisfaction. During this 30 day (or
longer) period, no Award issued to the Grantee under the Plan may be exercised or purchased. 
  
 (h) “Change in Control” means a change in ownership or control of the Company effected through either of the following transactions: 
  
 (i) the direct or indirect acquisition by any person or related group of persons (other than an acquisition from or by the
Company or by a Company-sponsored employee benefit plan or by a person that directly or indirectly controls, is controlled by, or is under common control with, the Company) of beneficial ownership (within the meaning of Rule 13d-3 of the Exchange
Act) of securities possessing more than fifty percent (50%) of the total combined voting power of the Company’s outstanding securities pursuant to a tender or exchange offer made directly to the Company’s shareholders which a majority of
the Continuing Directors who are not Affiliates or Associates of the offeror do not recommend such shareholders accept, or 
  
 (ii) a change in the composition of the Board over a period of thirty-six (36) months or less such that a majority of the Board members (rounded up to
the next whole number) ceases, by reason of one or more contested elections for Board membership, to be comprised of individuals who are Continuing Directors. 
  

(i) “Code” means the Internal Revenue Code of 1986, as amended. 
  
 (j) “Committee” means any committee appointed by the Board to administer the Plan. 
  
 (k) “Common Stock” means the common stock of the Company.

  
 (l) “Company” means Pericom Semiconductor
Corporation, a California corporation. 
  
 (m)
“Consultant” means any person (other than an Employee or a Director, solely with respect to rendering services in such person’s capacity as a Director) who is engaged by the Company or any Related Entity to render consulting or
advisory services to the Company or such Related Entity. 
  
 (n)
“Continuing Directors” means members of the Board who either (i) have been Board members continuously for a period of at least thirty-six (36) months or (ii) have been Board members for less than thirty-six (36) months and were
elected or nominated for election as Board members by at least a majority of the Board members described in clause (i) who were still in office at the time such election or nomination was approved by the Board. 
  
 (o) “Continuous Service” means that the provision of
services to the Company or a Related Entity in any capacity of Employee, Director or Consultant, is not interrupted or terminated. Continuous Service shall not be considered interrupted in the case of (i) any approved leave of absence, (ii)
transfers among the Company, any Related Entity, or any successor, in any capacity of Employee, Director or Consultant, or (iii) any change in status as 
  

 2 

 long as the individual remains in the service of the Company or a Related Entity in any capacity of Employee, Director or
Consultant (except as otherwise provided in the Award Agreement). An approved leave of absence shall include sick leave, military leave, or any other authorized personal leave. For purposes of each Incentive Stock Option granted under the Plan, if
such leave exceeds ninety (90) days, and reemployment upon expiration of such leave is not guaranteed by statute or contract, then the Incentive Stock Option shall be treated as a Non-Qualified Stock Option on the day three (3) months and one (1)
day following the expiration of such ninety (90) day period. 
  
 (p) “Corporate Transaction” means any of the following transactions: 
  
 (i) a merger or consolidation in which the Company is not the surviving entity, except for a transaction the principal purpose of which is to change the
state in which the Company is incorporated; 
  
 (ii) the sale,
transfer or other disposition of all or substantially all of the assets of the Company (including the capital stock of the Company’s subsidiary corporations); 
  
 (iii) approval by the Company’s shareholders of any plan or proposal for the complete liquidation or dissolution of
the Company; 
  
 (iv) any reverse merger in which the Company is
the surviving entity but in which securities possessing more than fifty percent (50%) of the total combined voting power of the Company’s outstanding securities are transferred to a person or persons different from those who held such
securities immediately prior to such merger; or 
  
 (v)
acquisition by any person or related group of persons (other than the Company or by a Company-sponsored employee benefit plan) of beneficial ownership (within the meaning of Rule 13d-3 of the Exchange Act) of securities possessing more than fifty
percent (50%) of the total combined voting power of the Company’s outstanding securities (whether or not in a transaction also constituting a Change in Control), but excluding any such transaction that the Administrator determines shall not be
a Corporate Transaction. 
  
 (q) “Covered
Employee” means an Employee who is a “covered employee” under Section 162(m)(3) of the Code. 
  
 (r) “Director” means a member of the Board or the board of directors of any Related Entity. 
  
 (s) “Disability” means a Grantee would qualify for benefit
payments under the long-term disability policy of the Company or the Related Entity to which the Grantee provides services regardless of whether the Grantee is covered by such policy. If the Company or the Related Entity to which the Grantee
provides service does not have a long-term disability plan in place, “Disability” means that a Grantee is permanently unable to carry out the responsibilities and functions of the position held by the Grantee by reason of any medically
determinable physical or mental impairment. A Grantee will not be considered to have incurred a Disability unless he or she furnishes proof of such impairment sufficient to satisfy the Administrator in its discretion. 
  

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 (t) “Dividend Equivalent Right” means a right entitling the Grantee to compensation
measured by dividends paid with respect to Common Stock. 
  
 (u)
“Employee” means any person, including an Officer or Director, who is an employee of the Company or any Related Entity. The payment of a director’s fee by the Company or a Related Entity shall not be sufficient to constitute
“employment” by the Company. 
  
 (v) “Exchange
Act” means the Securities Exchange Act of 1934, as amended. 
  
 (w) “Fair Market Value” means, as of any date, the value of Common Stock determined as follows: 
  
 (i) Where there exists a public market for the Common Stock, the Fair Market Value shall be (A) the closing price for a Share for the last market trading
day prior to the time of the grant (or, if no closing price was reported on that date, on the last trading date on which a closing price was reported) on the stock exchange determined by the Administrator to be the primary market for the Common
Stock or the Nasdaq National Market, whichever is applicable or (B) if the Common Stock is not traded on any such exchange or national market system, the average of the closing bid and asked prices of a Share on the Nasdaq Small Cap Market for the
day prior to the time of the determination (or, if no such prices were reported on that date, on the last date on which such prices were reported), in each case, as reported in The Wall Street Journal or such other source as the Administrator
deems reliable; or 
  
 (ii) In the absence of an established
market for the Common Stock of the type described in (i), above, the Fair Market Value thereof shall be determined by the Administrator in good faith. 
  
 (x) “Good Reason” means the occurrence after a Corporate Transaction, Change in Control or a Related Entity Disposition of any of the
following events or conditions unless consented to by the Grantee: 
  
 (i) (A) a change in the Grantee’s status, title, position or responsibilities which represents an adverse change from the Grantee’s status, title, position or responsibilities as in effect at any time within six (6) months
preceding the date of a Corporate Transaction, Change in Control or Related Entity Disposition or at any time thereafter or (B) the assignment to the Grantee of any duties or responsibilities which are inconsistent with the Optionee’s status,
title, position or responsibilities as in effect at any time within six (6) months preceding the date of a Corporate Transaction, Change in Control or Related Entity Disposition or at any time thereafter; 
  
 (ii) reduction in the Grantee’s base salary to a level below that in
effect at any time within six (6) months preceding the date of a Corporate Transaction, Change in Control or Related Entity Disposition or at any time thereafter. 
  

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 (y) “Grantee” means an Employee, Director or Consultant who receives an Award pursuant
to an Award Agreement under the Plan. 
  
 (z) “Immediate
Family” means any child, stepchild, grandchild, parent, stepparent, grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in law, daughter-in-law, brother-in-law, or sister-in-law, including adoptive
relationships, any person sharing the Grantee’s household (other than a tenant or employee), a trust in which these persons have more than fifty percent (50%) of the beneficial interest, a foundation in which these persons (or the Grantee)
control the management of assets, and any other entity in which these persons (or the Grantee) own more than fifty percent (50%) of the voting interests. 
  
 (aa) “Incentive Stock Option” means an Option intended to qualify as an incentive stock option within the meaning of Section 422 of the
Code. 
  
 (bb) “Non-Qualified Stock Option” means
an Option not intended to qualify as an Incentive Stock Option. 
  
 (cc) “Officer” means a person who is an officer of the Company or a Related Entity within the meaning of Section 16 of the Exchange Act and the rules and regulations promulgated thereunder. 
  
 (dd) “Option” means an option to purchase Shares pursuant to
an Award Agreement granted under the Plan. 
  
 (ee)
“Parent” means a “parent corporation,” whether now or hereafter existing, as defined in Section 424(e) of the Code. 
  
 (ff) “Performance - Based Compensation” means compensation qualifying as “performance-based compensation” under Section 162(m)
of the Code. 
  
 (gg) “Performance Shares” means
Shares or an Award denominated in Shares which may be earned in whole or in part upon attainment of performance criteria established by the Administrator. 
  
 (hh) “Performance Units” means an Award which may be earned in whole or in part upon attainment of performance criteria established by
the Administrator and which may be settled for cash, Shares or other securities or a combination of cash, Shares or other securities as established by the Administrator. 
  
 (ii) “Plan” means this 2001 Stock Incentive Plan. 
  
 (jj) “Related Entity” means any Parent, Subsidiary and any
business, corporation, partnership, limited liability company or other entity in which the Company, a Parent or a Subsidiary holds a substantial ownership interest, directly or indirectly. 
  
 (kk) “Related Entity Disposition” means the sale,
distribution or other disposition by the Company, a Parent or a Subsidiary of all or substantially all of the interests of 
  

 5 

 the Company, a Parent or a Subsidiary in any Related Entity effected by a sale, merger or consolidation or other
transaction involving that Related Entity or the sale of all or substantially all of the assets of that Related Entity, other than any Related Entity Disposition to the Company, a Parent or a Subsidiary. 
  
 (ll) “Restricted Stock” means Shares issued under the Plan
to the Grantee for such consideration, if any, and subject to such restrictions on transfer, rights of first refusal, repurchase provisions, forfeiture provisions, and other terms and conditions as established by the Administrator. 
  
 (mm) “Rule 16b-3” means Rule 16b-3 promulgated under the
Exchange Act or any successor thereto. 
  
 (nn)
“SAR” means a stock appreciation right entitling the Grantee to Shares or cash compensation, as established by the Administrator, measured by appreciation in the value of Common Stock. 
  
 (oo) “Share” means a share of the Common Stock. 

 
 (pp) “Subsidiary” means a “subsidiary
corporation,” whether now or hereafter existing, as defined in Section 424(f) of the Code. 
  
 3. Stock Subject to the Plan. 
  
 (a) Subject to the provisions of Section 10, below, the maximum aggregate number of Shares which may be issued pursuant to all Awards (including Incentive
Stock Options) is 2,250,000 Shares. The Shares to be issued pursuant to Awards may be authorized, but unissued, or reacquired Common Stock.  
  
 (b) Any Shares covered by an Award (or portion of an Award) which is forfeited or canceled, expires or is settled in cash, shall be deemed not to have
been issued for purposes of determining the maximum aggregate number of Shares which may be issued under the Plan. Shares that actually have been issued under the Plan pursuant to an Award shall not be returned to the Plan and shall not become
available for future issuance under the Plan, except that if unvested Shares are forfeited, or repurchased by the Company at their original purchase price, such Shares shall become available for future grant under the Plan. 
  
 4. Administration of the Plan. 
  
 (a) Plan Administrator. 
  
 (i) Administration with Respect to Directors and Officers. With
respect to grants of Awards to Directors or Employees who are also Officers or Directors of the Company, the Plan shall be administered by (A) the Board or (B) a Committee designated by the Board, which Committee shall be constituted in such a
manner as to satisfy the Applicable Laws and to permit such grants and related transactions under the Plan to be exempt from Section 16(b) of the Exchange Act in accordance with Rule 16b-3. Once appointed, such Committee shall continue to serve in
its designated capacity until otherwise directed by the Board. 
  

 6 

 (ii) Administration With Respect to Consultants and Other Employees. With respect to grants of
Awards to Employees or Consultants who are neither Directors nor Officers of the Company, the Plan shall be administered by (A) the Board or (B) a Committee designated by the Board, which Committee shall be constituted in such a manner as to satisfy
the Applicable Laws. Once appointed, such Committee shall continue to serve in its designated capacity until otherwise directed by the Board. The Board may authorize one or more Officers to grant such Awards and may limit such authority as the Board
determines from time to time. 
  
 (iii) Administration With
Respect to Covered Employees. Notwithstanding the foregoing, grants of Awards to any Covered Employee intended to qualify as Performance-Based Compensation shall be made only by a Committee (or subcommittee of a Committee) which is comprised
solely of two or more Directors eligible to serve on a committee making Awards qualifying as Performance-Based Compensation. In the case of such Awards granted to Covered Employees, references to the “Administrator” or to a
“Committee” shall be deemed to be references to such Committee or subcommittee. 
  
 (iv) Administration Errors. In the event an Award is granted in a manner inconsistent with the provisions of this subsection (a), such Award shall be presumptively valid to the extent such awards were not
issued in error as of its grant date and to the extent permitted by the Applicable Laws.  
  
 (b) Powers of the Administrator. Subject to Applicable Laws and the provisions of the Plan (including any other powers given to the Administrator
hereunder), and except as otherwise provided by the Board, the Administrator shall have the authority, in its discretion: 
  
 (i) to select the Employees, Directors and Consultants to whom Awards may be granted from time to time hereunder; 
  
 (ii) to determine whether and to what extent Awards are granted hereunder;

  
 (iii) to determine the number of Shares or the amount of
other consideration to be covered by each Award granted hereunder; 
  
 (iv) to approve forms of Award Agreements for use under the Plan; 
  
 (v) to determine the terms and conditions of any Award granted hereunder; 
  
 (vi) to amend the terms of any outstanding Award granted under the Plan, provided that (A) any amendment that would adversely affect the Grantee’s
rights under an outstanding Award shall not be made without the Grantee’s written consent, (B) the reduction of the exercise price of any Option awarded under the Plan shall be subject to shareholder approval and (C) canceling an Option at a
time when its exercise price exceeds the Fair Market Value of the underlying Shares, in exchange for another Option, Restricted Stock, or other Award shall be subject to shareholder approval, unless the cancellation and exchange occurs in connection
with a Corporate Transaction; 
  

 7 

 (vii) to construe and interpret the terms of the Plan and Awards granted pursuant to the Plan, including
without limitation, any notice of Award or Award Agreement, granted pursuant to the Plan; 
  
 (viii) to establish additional terms, conditions, rules or procedures to accommodate the rules or laws of applicable foreign jurisdictions and to afford Grantees favorable treatment under such laws; provided, however,
that no Award shall be granted under any such additional terms, conditions, rules or procedures with terms or conditions which are inconsistent with the provisions of the Plan; and 
  
 (ix) to take such other action, not inconsistent with the terms of the Plan, as the Administrator deems appropriate.

  
 5. Eligibility. Awards other than Incentive Stock
Options may be granted to Employees, Directors and Consultants. Incentive Stock Options may be granted only to Employees of the Company, a Parent or a Subsidiary. An Employee, Director or Consultant who has been granted an Award may, if otherwise
eligible, be granted additional Awards. Awards may be granted to such Employees, Directors or Consultants who are residing in foreign jurisdictions as the Administrator may determine from time to time. 
  
 6. Terms and Conditions of Awards. 
  
 (a) Type of Awards. The Administrator is authorized under the Plan to
award any type of arrangement to an Employee, Director or Consultant that is not inconsistent with the provisions of the Plan and that by its terms involves or might involve the issuance of (i) Shares, (ii) an Option, a SAR or similar right with a
fixed or variable price related to the Fair Market Value of the Shares and with an exercise or conversion privilege related to the passage of time, the occurrence of one or more events, or the satisfaction of performance criteria or other
conditions, or (iii) any other security with the value derived from the value of the Shares. Such awards include, without limitation, Options, SARs, sales or bonuses of Restricted Stock, Dividend Equivalent Rights, Performance Units or Performance
Shares, and an Award may consist of one such security or benefit, or two (2) or more of them in any combination or alternative. 
  
 (b) Designation of Award. Each Award shall be designated in the Award Agreement. In the case of an Option, the Option shall be designated as either
an Incentive Stock Option or a Non-Qualified Stock Option. However, notwithstanding such designation, to the extent that the aggregate Fair Market Value of Shares subject to Options designated as Incentive Stock Options which become exercisable for
the first time by a Grantee during any calendar year (under all plans of the Company or any Parent or Subsidiary) exceeds $100,000, such excess Options, to the extent of the Shares covered thereby in excess of the foregoing limitation, shall be
treated as Non-Qualified Stock Options. For this purpose, Incentive Stock Options shall be taken into account in the order in which they were granted, and the Fair Market Value of the Shares shall be determined as of the date the Option with respect
to such Shares is granted. 
  
 (c) Conditions of Award.
Subject to the terms of the Plan, the Administrator shall determine the provisions, terms, and conditions of each Award including, but not limited to, the 
  

 8 

 Award vesting schedule, repurchase provisions, rights of first refusal, forfeiture provisions, form of payment (cash,
Shares, or other consideration) upon settlement of the Award, payment contingencies, and satisfaction of any performance criteria. The performance criteria established by the Administrator may be based on any one of, or combination of, increase in
share price, earnings per share, total shareholder return, return on equity, return on assets, return on investment, net operating income, cash flow, revenue, economic value added, personal management objectives, or other measure of performance
selected by the Administrator. Partial achievement of the specified criteria may result in a payment or vesting corresponding to the degree of achievement as specified in the Award Agreement. 
  
 (d) Acquisitions and Other Transactions. The Administrator may issue
Awards under the Plan in settlement, assumption or substitution for, outstanding awards or obligations to grant future awards in connection with the Company or a Related Entity acquiring another entity, an interest in another entity or an additional
interest in a Related Entity whether by merger, stock purchase, asset purchase or other form of transaction. 
  
 (e) Deferral of Award Payment. The Administrator may establish one or more programs under the Plan to permit selected Grantees the opportunity to
elect to defer receipt of consideration upon exercise of an Award, satisfaction of performance criteria, or other event that absent the election would entitle the Grantee to payment or receipt of Shares or other consideration under an Award. The
Administrator may establish the election procedures, the timing of such elections, the mechanisms for payments of, and accrual of interest or other earnings, if any, on amounts, Shares or other consideration so deferred, and such other terms,
conditions, rules and procedures that the Administrator deems advisable for the administration of any such deferral program. 
  
 (f) Award Exchange Programs. The Administrator may establish one or more programs under the Plan to permit selected Grantees to exchange an Award
under the Plan for one or more other types of Awards under the Plan on such terms and conditions as determined by the Administrator from time to time. 
  
 (g) Separate Programs. The Administrator may establish one or more separate programs under the Plan for the purpose of issuing particular forms of
Awards to one or more classes of Grantees on such terms and conditions as determined by the Administrator from time to time. 
  
 (h) Individual Option and SAR Limit. The maximum number of Shares with respect to which Options and SARs may be granted to any Grantee in any
fiscal year of the Company shall be 500,000. In connection with a Grantee’s commencement of Continuous Service, a Grantee may be granted Options and SARs for up to an additional 250,000 Shares which shall not count against the limit set forth
in the previous sentence. The foregoing limitations shall be adjusted proportionately in connection with any change in the Company’s capitalization pursuant to Section 10, below. To the extent required by Section 162(m) of the Code or the
regulations thereunder, in applying the foregoing limitations with respect to a Grantee, if any Option or SAR is canceled, the canceled Option or SAR shall continue to count against the maximum number of Shares with respect to which Options and SARs
may be granted to the Grantee. For this purpose, the repricing of an Option (or in the case of a SAR, the base 
  

 9 

 amount on which the stock appreciation is calculated is reduced to reflect a reduction in the Fair Market Value of the
Common Stock) shall be treated as the cancellation of the existing Option or SAR and the grant of a new Option or SAR. 
  
 (i) Early Exercise. The Award Agreement may, but need not, include a provision whereby the Grantee may elect at any time while an Employee,
Director or Consultant to exercise any part or all of the Award prior to full vesting of the Award. Any unvested Shares received pursuant to such exercise may be subject to a repurchase right in favor of the Company or a Related Entity or to any
other restriction the Administrator determines to be appropriate. 
  
 (j) Term of Award. The term of each Award shall be the term stated in the Award Agreement, provided, however, that the term of an Incentive Stock Option shall be no more than ten (10) years from the date of grant thereof. However, in
the case of an Incentive Stock Option granted to a Grantee who, at the time the Option is granted, owns stock representing more than ten percent (10%) of the voting power of all classes of stock of the Company or any Parent or Subsidiary, the term
of the Incentive Stock Option shall be five (5) years from the date of grant thereof or such shorter term as may be provided in the Award Agreement. 
  
 (k) Transferability of Awards. Incentive Stock Options may not be sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner
other than by will or by the laws of descent or distribution and may be exercised, during the lifetime of the Grantee, only by the Grantee; provided, however, that the Grantee may designate a beneficiary of the Grantee’s Incentive Stock Option
in the event of the Grantee’s death on a beneficiary designation form provided by the Administrator. Other Awards may be transferred by gift or through a domestic relations order to members of the Grantee’s Immediate Family to the extent
provided in the Award Agreement or in the manner and to the extent determined by the Administrator. 
  
 (l) Time of Granting Awards. The date of grant of an Award shall for all purposes be the date on which the Administrator makes the determination to
grant such Award, or such other date as is determined by the Administrator. Notice of the grant determination shall be given to each Employee, Director or Consultant to whom an Award is so granted within a reasonable time after the date of such
grant. 
  
 7. Award Exercise or Purchase Price, Consideration
and Taxes. 
  
 (a) Exercise or Purchase Price. The
exercise or purchase price, if any, for an Award shall be as follows: 
  
 (i) In the case of an Incentive Stock Option: 
  
 (A)
granted to an Employee who, at the time of the grant of such Incentive Stock Option owns stock representing more than ten percent (10%) of the voting power of all classes of stock of the Company or any Parent or Subsidiary, the per Share exercise
price shall be not less than one hundred ten percent (110%) of the Fair Market Value per Share on the date of grant; or 
  

 10 

 (B) granted to any Employee other than an Employee described in the preceding paragraph, the per Share
exercise price shall be not less than one hundred percent (100%) of the Fair Market Value per Share on the date of grant. 
  
 (ii) In the case of a Non-Qualified Stock Option, the per Share exercise price shall be not less than one hundred percent (100%) of the Fair Market Value
per Share on the date of grant. 
  
 (iii) In the case of SARs,
the base appreciation amount shall be not less than one hundred percent (100%) of the Fair Market Value per Share on the date of grant. 
  
 (iv) In the case of Awards intended to qualify as Performance-Based Compensation, the exercise or purchase price, if any, shall be not less than one
hundred percent (100%) of the Fair Market Value per Share on the date of grant. 
  
 (v) In the case of other Awards, such price as is determined by the Administrator. 
  
 (vi) Notwithstanding the foregoing provisions of this Section 7(a), in the case of an Award issued pursuant to Section 6(d), above, the exercise or
purchase price for the Award shall be determined in accordance with the principles of Section 424(a) of the Code. 
  
 (b) Consideration. Subject to Applicable Laws, the consideration to be paid for the Shares to be issued upon exercise or purchase of an Award
including the method of payment, shall be determined by the Administrator (and, in the case of an Incentive Stock Option, shall be determined at the time of grant). In addition to any other types of consideration the Administrator may determine, the
Administrator is authorized to accept as consideration for Shares issued under the Plan the following: 
  
 (i) cash; 
  
 (ii) check; 
  
 (iii) surrender of Shares or delivery of a properly executed form of attestation of ownership of Shares as the Administrator may require (including
withholding of Shares otherwise deliverable upon exercise of the Award) which have a Fair Market Value on the date of surrender or attestation equal to the aggregate exercise price of the Shares as to which said Award shall be exercised (but only to
the extent that such exercise of the Award would not result in an accounting compensation charge with respect to the Shares used to pay the exercise price unless otherwise determined by the Administrator); 
  
 (iv) with respect to Options, payment through a broker-dealer sale and
remittance procedure pursuant to which the Grantee (A) shall provide written instructions to a Company designated brokerage firm to effect the immediate sale of some or all of the purchased Shares and remit to the Company, out of the sale proceeds
available on the settlement date, sufficient funds to cover the aggregate exercise price payable for the purchased Shares and (B) shall provide written directives to the Company to deliver the certificates for the purchased Shares directly to such
brokerage firm in order to complete the sale transaction; or 
  

 11 

 (v) any combination of the foregoing methods of payment. 
  
 (c) Taxes. No Shares shall be delivered under the Plan to any Grantee
or other person until such Grantee or other person has made arrangements acceptable to the Administrator for the satisfaction of any foreign, federal, state, or local income and employment tax withholding obligations, including, without limitation,
obligations incident to the receipt of Shares or the disqualifying disposition of Shares received on exercise of an Incentive Stock Option. Upon exercise of an Award, the Company shall withhold or collect from Grantee an amount sufficient to satisfy
such tax obligations. 
  
 8. Exercise of Award. 

 
 (a) Procedure for Exercise; Rights as a Shareholder. 

 
 (i) Any Award granted hereunder shall be exercisable at such times and
under such conditions as determined by the Administrator under the terms of the Plan and specified in the Award Agreement. 
  
 (ii) An Award shall be deemed to be exercised when written notice of such exercise has been given to the Company in accordance with the terms of the
Award by the person entitled to exercise the Award and full payment for the Shares with respect to which the Award is exercised, including, to the extent selected, use of the broker-dealer sale and remittance procedure to pay the purchase price as
provided in Section 7(b)(v). Until the issuance (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company) of the stock certificate evidencing such Shares, no right to vote or receive
dividends or any other rights as a shareholder shall exist with respect to Shares subject to an Award, notwithstanding the exercise of an Option or other Award. The Company shall issue (or cause to be issued) such stock certificate promptly upon
exercise of the Award. No adjustment will be made for a dividend or other right for which the record date is prior to the date the stock certificate is issued, except as provided in the Award Agreement or Section 10, below. 
  
 (b) Exercise of Award Following Termination of Continuous Service.

  
 (i) An Award may not be exercised after the termination date
of such Award set forth in the Award Agreement and may be exercised following the termination of a Grantee’s Continuous Service only to the extent provided in the Award Agreement. 
  
 (ii) Where the Award Agreement permits a Grantee to exercise an Award following the termination of the Grantee’s
Continuous Service for a specified period, the Award shall terminate to the extent not exercised on the last day of the specified period or the last day of the original term of the Award, whichever occurs first. 
  
 (iii) Any Award designated as an Incentive Stock Option to the extent not
exercised within the time permitted by law for the exercise of Incentive Stock Options following the termination of a Grantee’s Continuous Service shall convert automatically to a Non-Qualified Stock Option and thereafter shall be exercisable
as such to the extent exercisable by its terms for the period specified in the Award Agreement. 
  

 12 

 9. Conditions Upon Issuance of Shares. 
  
 (a) Shares shall not be issued pursuant to the exercise of an Award unless
the exercise of such Award and the issuance and delivery of such Shares pursuant thereto shall comply with all Applicable Laws, and shall be further subject to the approval of counsel for the Company with respect to such compliance. 
  
 (b) As a condition to the exercise of an Award, the Company may require the
person exercising such Award to represent and warrant at the time of any such exercise that the Shares are being purchased only for investment and without any present intention to sell or distribute such Shares if, in the opinion of counsel for the
Company, such a representation is required by any Applicable Laws. 
  
 10. Adjustments Upon Changes in Capitalization. Subject to any required action by the shareholders of the Company, the number of Shares covered by each outstanding Award, and the number of Shares which have been authorized for
issuance under the Plan but as to which no Awards have yet been granted or which have been returned to the Plan, the exercise or purchase price of each such outstanding Award, the maximum number of Shares with respect to which Options and SARs may
be granted to any Grantee in any fiscal year of the Company, as well as any other terms that the Administrator determines require adjustment shall be proportionately adjusted for (i) any increase or decrease in the number of issued Shares resulting
from a stock split, reverse stock split, stock dividend, combination or reclassification of the Shares, or similar event affecting the Shares, (ii) any other increase or decrease in the number of issued Shares effected without receipt of
consideration by the Company, or (iii) as the Administrator may determine in its discretion, any other transaction with respect to Common Stock to which Section 424(a) of the Code applies or any similar transaction; provided, however that conversion
of any convertible securities of the Company shall not be deemed to have been “effected without receipt of consideration.” Such adjustment shall be made by the Administrator and its determination shall be final, binding and conclusive.
Except as the Administrator determines, no issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall affect, and no adjustment by reason hereof shall be made with respect to, the
number or price of Shares subject to an Award. 
  
 11.
Corporate Transactions/Changes in Control/Related Entity Dispositions. Except as may be provided in an Award Agreement: 
  
 (a) In the event of any Corporate Transaction, each Award which is at the time outstanding under the Plan automatically shall become fully vested and
exercisable and be released from any restrictions on transfer (other than transfer restrictions applicable to Options) and repurchase or forfeiture rights, immediately prior to the specified effective date of such Corporate Transaction, for all of
the Shares at the time represented by such Award. Effective upon the consummation of the Corporate Transaction, all outstanding Awards under the Plan shall terminate. However, all such Awards shall not terminate if the Awards are, in connection with
the Corporate Transaction, assumed by the successor corporation or Parent thereof. In addition, an outstanding Award under the Plan shall not so fully vest and be exercisable and released from such limitations if and to the extent: (i) such Award
is, in connection with the Corporate Transaction, either assumed by the successor corporation or Parent thereof or replaced 
  

 13 

 with a comparable Award with respect to shares of the capital stock of the successor corporation or Parent thereof or
(ii) such Award is to be replaced with a cash incentive program of the successor corporation which preserves the compensation element of such Award existing at the time of the Corporate Transaction and provides for subsequent payout in accordance
with the same vesting schedule applicable to such Award; provided, however, that such Award (if assumed), the replacement Award (if replaced), or the cash incentive program automatically shall become fully vested, exercisable and payable and be
released from any restrictions on transfer (other than transfer restrictions applicable to Options) and repurchase or forfeiture rights immediately upon termination of the Grantee’s Continuous Service (substituting the successor employer
corporation for “Company or Related Entity” for the definition of “Continuous Service”) if such Continuous Service is terminated by the successor company without Cause or voluntarily by the Grantee with Good Reason within twelve
(12) months of the Corporate Transaction. The determination of Award comparability above shall be made by the Administrator. 
  
 (b) Following a Change in Control (other than a Change in Control which also is a Corporate Transaction) and upon the termination of the Continuous
Service of a Grantee if such Continuous Service is terminated by the Company or Related Entity without Cause or voluntarily by the Grantee with Good Reason within twelve (12) months of a Change in Control, such Grantee shall be treated as if such
Grantee had one additional year of employment with the Company for purposes of vesting, exercisability, restrictions on transfer (other than transfer restrictions applicable to Options) and repurchase or forfeiture rights. 
  
 (c) Effective upon the consummation of a Related Entity Disposition, for
purposes of the Plan and all Awards, the Continuous Service of each Grantee who is at the time engaged primarily in service to the Related Entity involved in such Related Entity Disposition shall be deemed to terminate and each Award of such Grantee
which is at the time outstanding under the Plan automatically shall become fully vested and exercisable and be released from any restrictions on transfer (other than transfer restrictions applicable to Options) and repurchase or forfeiture rights
for all of the Shares at the time represented by such Award and be exercisable in accordance with the terms of the Award Agreement evidencing such Award. However, such Continuous Service shall be not be deemed to terminate if such Award is, in
connection with the Related Entity Disposition, assumed by the successor entity or its Parent. In addition, such Continuous Service shall not be deemed to terminate and an outstanding Award under the Plan shall not so fully vest and be exercisable
and released from such limitations if and to the extent: (i) such Award is, in connection with the Related Entity Disposition, either to be assumed by the successor entity or its parent or to be replaced with a comparable Award with respect to
interests in the successor entity or its parent or (ii) such Award is to be replaced with a cash incentive program of the successor entity which preserves the compensation element of such Award existing at the time of the Related Entity Disposition
and provides for subsequent payout in accordance with the same vesting schedule applicable to such Award; provided, however, that such Award (if assumed), the replacement Award (if replaced), or the cash incentive program automatically shall become
fully vested, exercisable and payable and be released from any restrictions on transfer (other than transfer restrictions applicable to Options) and repurchase or forfeiture rights immediately upon termination of the Grantee’s Continuous
Service (substituting the successor employer entity for “Company or Related Entity” for the definition of “Continuous Service”) if such Continuous Service is terminated by the successor entity without Cause or voluntarily by the
Grantee with Good Reason within twelve (12) months of the Related Entity Disposition. The determination of Award comparability above shall be made by the Administrator. 
  

 14 

 (d) The portion of any Incentive Stock Option accelerated under this Section 11 in connection with a
Corporate Transaction, Change in Control or Related Entity Disposition shall remain exercisable as an Incentive Stock Option under the Code only to the extent the $100,000 dollar limitation of Section 422(d) of the Code is not exceeded. To the
extent such dollar limitation is exceeded, the accelerated excess portion of such Option shall be exercisable as a Non-Qualified Stock Option. 
  
 12. Effective Date and Term of Plan. The Plan shall become effective upon the earlier to occur of its adoption by the Board or its approval by the
shareholders of the Company. It shall continue in effect for a term of ten (10) years unless sooner terminated. Subject to Section 17, below, and Applicable Laws, Awards may be granted under the Plan upon its becoming effective. 
  
 13. Amendment, Suspension or Termination of the Plan. 
  
 (a) The Board may at any time amend, suspend or terminate the Plan;
provided, however, that no such amendment shall be made without the approval of the Company’s shareholders to the extent such approval is required by Applicable Laws, or if such amendment would lessen the shareholder approval requirements of
Section 4(b)(vi) or this Section 13(a). 
  
 (b) No Award may be
granted during any suspension of the Plan or after termination of the Plan. 
  
 (c) Any amendment, suspension or termination of the Plan (including termination of the Plan under Section 12, above) shall not affect Awards already granted, and such Awards shall remain in full force and effect as if
the Plan had not been amended, suspended or terminated, unless mutually agreed otherwise between the Grantee and the Administrator, which agreement must be in writing and signed by the Grantee and the Company. 
  
 14. Reservation of Shares. 
  
 (a) The Company, during the term of the Plan, will at all times reserve and
keep available such number of Shares as shall be sufficient to satisfy the requirements of the Plan. 
  
 (b) The inability of the Company to obtain authority from any regulatory body having jurisdiction, which authority is deemed by the Company’s counsel
to be necessary to the lawful issuance and sale of any Shares hereunder, shall relieve the Company of any liability in respect of the failure to issue or sell such Shares as to which such requisite authority shall not have been obtained. 

 
 15. No Effect on Terms of Employment/Consulting Relationship. The
Plan shall not confer upon any Grantee any right with respect to the Grantee’s Continuous Service, nor shall it interfere in any way with his or her right or the Company’s right to terminate the Grantee’s Continuous Service at any
time, with or without cause. 
  

 15 

 16. No Effect on Retirement and Other Benefit Plans. Except as specifically provided in a
retirement or other benefit plan of the Company or a Related Entity, Awards shall not be deemed compensation for purposes of computing benefits or contributions under any retirement plan of the Company or a Related Entity, and shall not affect any
benefits under any other benefit plan of any kind or any benefit plan subsequently instituted under which the availability or amount of benefits is related to level of compensation. The Plan is not a “Retirement Plan” or “Welfare
Plan” under the Employee Retirement Income Security Act of 1974, as amended. 
  
 17. Plan Approval. The Plan was adopted by the Board in October of 2000 and adopted by the shareholders of the Company in December 2000. In October 2004, the Board adopted and approved an amendment and
restatement of the Plan to (a) provide that (i) the reduction of the exercise price of any Option awarded under the Plan shall be subject to shareholder approval and (ii) canceling an Option at a time when its exercise price exceeds the Fair Market
Value of the underlying Shares, in exchange for another Option, Restricted Stock, or other Award shall be subject to shareholder approval, unless the cancellation and exchange occurs in connection with a Corporate Transaction, (b) provide that the
exercise price of any Non-Qualified Stock Option shall be not less than one hundred percent (100%) of the Fair Market Value per Share on the date of grant and (c) provide that the base appreciation amount of any SAR shall be not less than one
hundred percent (100%) of the Fair Market Value per Share on the date of grant, which amendment and restatement was conditioned upon shareholder approval of the Company’s 2004 Stock Incentive Plan. On December 15, 2004, the shareholders
approved the Company’s 2004 Stock Incentive Plan and, accordingly, the foregoing amendment and restatement of the 2001 Stock Incentive Plan went into effect as of such date. 
  

 16 

			
	 Notice of Grant of Stock Options
 and Option
Agreement
	 	 Pericom Semiconductor Corp.
 ID:
77-0254621
 3545 North First Street
 San Jose, CA
95134

		
	 Name
 Address
 Address
 City, State Zip
	 	 Option Number:
 Plan:
 ID:

  
 Effective
            , you have been granted a(n) Incentive Stock Option to buy              shares of Pericom Semiconductor
Corp. (the Company) stock at $             per share. 
  
 The total option price of the shares granted is $            . 
  
 Shares in each period will become fully vested on the date shown. 
  

							
	 Shares

	 	 Vest Type

	 	 Full Vest

	  	Expiration

  
 By your signature and the
Company’s signature below, you and the Company agree that these options are granted under and governed by the terms and conditions of the Company’s Stock Option Plan as amended and the Option Agreement, all of which are attached and made a
part of this document. 
  

			
	  

	 	

	 Pericom Semiconductor Corp.
	 	Date
		
	  

	 	

	 Optionee
	 	Date
	 	 	Date:                                     
        
	 	 	Time:                                     
        

  

 1 

 Notice of Grant of Stock Options 
 and Option Agreement continued 
  
 Definitions: 
  

	1.	Date of Award is the effective date as stated in the Notice of Grant of Stock Options and Option Agreement (the “Notice”). 

  

	2.	Expiration Date is the date on the Notice under the column heading “Expiration.” 

  

	3.	Post-Termination Exercise Period is three (3) months. 

  
 Vesting Schedule: 
  
 Subject to Grantee’s Continuous Service and other limitations set forth in this Notice, the Plan and the Option Agreement, the Option may be
exercised, in whole or in part, in accordance with the schedule on page 1 of this Notice. 
  
 During any authorized leave of absence, the vesting of the Option as provided in this schedule shall cease after the leave of absence exceeds a period of ninety (90) days. Vesting of the Option shall resume upon the
Grantee’s termination of the leave of absence and return to service to the Company or a Related Entity. 
  
 In the event of the Grantee’s change in status from Employee to Consultant or from an Employee whose customary employment is 20 hours or more per
week to an Employee whose customary employment is fewer than 20 hours per week, vesting of the Option shall continue only to the extent determined by the Administrator as of such change in status. 
  
 In the event of termination of the Grantee’s Continuous Service for
Cause, the Grantee’s right to exercise the Option shall terminate concurrently with the termination of the Grantee’s Continuous Service. 
  
 IN WITNESS WHEREOF, the Company and the Grantee have executed this Notice and agree that the Option is to be governed by the terms and conditions of this
Notice, the Plan, and the Option Agreement. 
  
  

			
	 Pericom Semiconductor Corporation,

	 a California corporation

		
	 By:
	 	  

	 Title:
	 	  

  

 2 

 Notice of Grant of Stock Options 
 and Option Agreement continued 
  
 THE GRANTEE ACKNOWLEDGES AND AGREES THAT THE SHARES SUBJECT TO THE OPTION SHALL VEST, IF AT ALL, ONLY DURING THE PERIOD OF THE GRANTEE’S CONTINUOUS SERVICE (NOT THROUGH THE ACT OF BEING HIRED, BEING GRANTED THE OPTION OR ACQUIRING
SHARES HEREUNDER). THE GRANTEE FURTHER ACKNOWLEDGES AND AGREES THAT NOTHING IN THIS NOTICE, THE OPTION AGREEMENT, OR THE PLAN SHALL CONFER UPON THE GRANTEE ANY RIGHT WITH RESPECT TO FUTURE AWARDS OR CONTINUATION OF GRANTEE’S CONTINUOUS SERVICE,
NOR SHALL IT INTERFERE IN ANY WAY WITH THE GRANTEE’S RIGHT OR THE RIGHT OF THE GRANTEE’S EMPLOYER TO TERMINATE GRANTEE’S CONTINUOUS SERVICE, WITH OR WITHOUT CAUSE, AND WITH OR WITHOUT NOTICE. THE GRANTEE ACKNOWLEDGES THAT UNLESS THE
GRANTEE HAS A WRITTEN EMPLOYMENT AGREEMENT WITH THE COMPANY TO THE CONTRARY, GRANTEE’S STATUS IS AT WILL. 
  
 The Grantee acknowledges receipt of a copy of the Plan and the Option Agreement, and represents that he or she is familiar with the terms and provisions
thereof, and hereby accepts the Option subject to all of the terms and provisions hereof and thereof. The Grantee has reviewed this Notice, the Plan, and the Option Agreement in their entirety, has had an opportunity to obtain the advice of counsel
prior to executing this Notice, and fully understands all provisions of this Notice, the Plan and the Option Agreement. The Grantee hereby agrees that all disputes arising out of or relating to this Notice, the Plan and the Option Agreement shall be
resolved in accordance with Section 13 of the Option Agreement. The Grantee further agrees to notify the Company upon any change in the residence address indicated in this Notice. 
  

							
	 Dated:
	 	  

	 	Signed:	 	  

  

 3 

 Award Number:
                     
  
 PERICOM SEMICONDUCTOR CORPORATION 
  
 2001 STOCK INCENTIVE PLAN 
  
 STOCK OPTION AWARD AGREEMENT 
  
 1. Grant of Option. Pericom Semiconductor Corporation., a California corporation (the “Company”), hereby grants to the Grantee (the
“Grantee”) named in the Notice of Stock Option Award (the “Notice”), an option (the “Option”) to purchase the Total Number of Shares of Common Stock subject to the Option (the “Shares”) set forth in the
Notice, at the Exercise Price per Share set forth in the Notice (the “Exercise Price”) subject to the terms and provisions of the Notice, this Stock Option Award Agreement (the “Option Agreement”) and the Company’s 2001
Stock Incentive Plan, as amended from time to time (the “Plan”), which are incorporated herein by reference. Unless otherwise defined herein, the terms defined in the Plan shall have the same defined meanings in this Option Agreement.

  
 If designated in the Notice as an Incentive Stock Option, the
Option is intended to qualify as an Incentive Stock Option as defined in Section 422 of the Code. However, notwithstanding such designation, to the extent that the aggregate Fair Market Value of Shares subject to Options designated as Incentive
Stock Options which become exercisable for the first time by the Grantee during any calendar year (under all plans of the Company or any Parent or Subsidiary) exceeds $100,000, such excess Options, to the extent of the Shares covered thereby in
excess of the foregoing limitation, shall be treated as Non-Qualified Stock Options. For this purpose, Incentive Stock Options shall be taken into account in the order in which they were granted, and the Fair Market Value of the Shares shall be
determined as of the date the Option with respect to such Shares is awarded. 
  
 2. Exercise of Option. 
  
 (a) Right to Exercise. The Option shall be exercisable during its term in accordance with the Vesting Schedule set out in the Notice and with the applicable provisions of the Plan and this Option Agreement. The Option shall be
subject to the provisions of Section 11 of the Plan relating to the exercisability or termination of the Option in the event of a Corporate Transaction, Change in Control or Related Entity Disposition. No partial exercise of the Option may be for
less than the lesser of five percent (5%) of the total number of Shares subject to the Option or the remaining number of Shares subject to the Option. In no event shall the Company issue fractional Shares. 
  
 (b) Method of Exercise. The Option shall be exercisable only by
delivery of an Exercise Notice (attached as Exhibit A) which shall state the election to exercise the Option, the whole number of Shares in respect of which the Option is being exercised, such other representations and agreements as to the
holder’s investment intent with respect to such Shares and such other provisions as may be required by the Administrator. The Exercise Notice shall be signed by the Grantee and shall be delivered in person, by certified mail, or by such other

  

 1 

 method as determined from time to time by the Administrator to the Company accompanied by payment of the Exercise Price.
The Option shall be deemed to be exercised upon receipt by the Company of such written notice accompanied by the Exercise Price, which, to the extent selected, shall be deemed to be satisfied by use of the broker-dealer sale and remittance procedure
to pay the Exercise Price provided in Section 3(d), below. 
  
 (c)
Taxes. No Shares will be delivered to the Grantee or other person pursuant to the exercise of the Option until the Grantee or other person has made arrangements acceptable to the Administrator for the satisfaction of applicable income tax,
employment tax, and social security tax withholding obligations, including, without limitation, obligations incident to the receipt of Shares or the disqualifying disposition of Shares received on exercise of an Incentive Stock Option. Upon exercise
of the Option, the Company or the Grantee’s employer may offset or withhold (from any amount owed by the Company or the Grantee’s employer to the Grantee) or collect from the Grantee or other person an amount sufficient to satisfy such tax
obligations and/or the employer’s withholding obligations. 
  
 3. Method of Payment. Payment of the Exercise Price shall be by any of the following, or a combination thereof, at the election of the Grantee; provided, however, that such exercise method does not then violate any Applicable Law:

  
 (a) cash; 
  
 (b) check; 
  
 (c) surrender of Shares or delivery of a properly executed form of attestation of ownership of Shares as the Administrator
may require (including withholding of Shares otherwise deliverable upon exercise of the Option) which have a Fair Market Value on the date of surrender or attestation equal to the aggregate Exercise Price of the Shares as to which the Option is
being exercised (but only to the extent that such exercise of the Option would not result in an accounting compensation charge with respect to the Shares used to pay the exercise price); 
  
 (d) payment through a broker-dealer sale and remittance procedure pursuant to which the Grantee (i) shall provide written
instructions to a Company designated brokerage firm to effect the immediate sale of some or all of the purchased Shares and remit to the Company, out of the sale proceeds available on the settlement date, sufficient funds to cover the aggregate
exercise price payable for the purchased Shares and (ii) shall provide written directives to the Company to deliver the certificates for the purchased Shares directly to such brokerage firm in order to complete the sale transaction; or 

 

	 	(i)	any other method acceptable to the Administrator in its sole discretion 

  
 4. Restrictions on Exercise. The Option may not be exercised if the issuance of the Shares subject to the Option upon
such exercise would constitute a violation of any Applicable Laws. In addition, the Option, if an Incentive Stock Option, may not be exercised until such time as the Plan has been approved by the stockholders of the Company. 
  

 2 

 5. Termination or Change of Continuous Service. In the event the Grantee’s Continuous Service
terminates, other than for Cause, the Grantee may, to the extent otherwise so entitled at the date of such termination (the “Termination Date”), exercise the Option during the Post-Termination Exercise Period. In the event of termination
of the Grantee’s Continuous Service for Cause, the Grantee’s right to exercise the Option shall, except as otherwise determined by the Administrator, terminate concurrently with the termination of the Grantee’s Continuous Service. In
no event shall the Option be exercised later than the Expiration Date set forth in the Notice. In the event of the Grantee’s change in status from Employee, Director or Consultant to any other status of Employee, Director or Consultant, the
Option shall remain in effect and, except to the extent otherwise determined by the Administrator, continue to vest; provided, however, that with respect to any Incentive Stock Option that shall remain in effect after a change in status from
Employee to Director or Consultant, such Incentive Stock Option shall cease to be treated as an Incentive Stock Option and shall be treated as a Non-Qualified Stock Option on the day three (3) months and one (1) day following such change in status.
Except as provided in Sections 6 and 7 below, to the extent that the Grantee is not entitled to exercise the Option on the Termination Date, or if the Grantee does not exercise the Option within the Post-Termination Exercise Period, the Option shall
terminate. 
  
 6. Disability of Grantee. In the event the
Grantee’s Continuous Service terminates as a result of his or her Disability, the Grantee may, but only within twelve (12) months from the Termination Date (and in no event later than the Expiration Date), exercise the Option to the extent he
or she was otherwise entitled to exercise it on the Termination Date; provided, however, that if such Disability is not a “disability” as such term is defined in Section 22(e)(3) of the Code and the Option is an Incentive Stock Option,
such Incentive Stock Option shall cease to be treated as an Incentive Stock Option and shall be treated as a Non-Qualified Stock Option on the day three (3) months and one (1) day following the Termination Date. To the extent that the Grantee is not
entitled to exercise the Option on the Termination Date, or if the Grantee does not exercise the Option to the extent so entitled within the time specified herein, the Option shall terminate. 
  
 7. Death of Grantee. In the event of the termination of the
Grantee’s Continuous Service as a result of his or her death, or in the event of the Grantee’s death during the Post-Termination Exercise Period or during the twelve (12) month period following the Grantee’s termination of Continuous
Service as a result of his or her Disability, the Grantee’s estate, or a person who acquired the right to exercise the Option by bequest or inheritance, may exercise the Option, but only to the extent the Grantee could exercise the Option at
the date of termination, within twelve (12) months from the date of death (but in no event later than the Expiration Date). To the extent that the Grantee is not entitled to exercise the Option on the date of death, or if the Option is not exercised
to the extent so entitled within the time specified herein, the Option shall terminate. 
  
 8. Transferability of Option. The Option, if an Incentive Stock Option, may not be transferred in any manner other than by will or by the laws of descent and distribution and may be exercised during the
lifetime of the Grantee only by the Grantee; provided, however, that the Grantee may designate a beneficiary of the Grantee’s Incentive Stock Option in the event of the Grantee’s death on a beneficiary designation form provided by the
Administrator. The Option, if a Non-Qualified Stock Option may be transferred to any person by will and by the laws of descent and distribution. Non-Qualified Stock Options also may be transferred during the 
  

 3 

 lifetime of the Grantee by gift and pursuant to a domestic relations order to members of the Grantee’s Immediate
Family to the extent and in the manner determined by the Administrator. The terms of the Option shall be binding upon the executors, administrators, heirs, successors and transferees of the Grantee. 
  
 9. Term of Option. The Option may be exercised no later than the
Expiration Date set forth in the Notice or such earlier date as otherwise provided herein. 
  
 10. Tax Consequences. Set forth below is a brief summary as of the date of this Option Agreement of some of the federal tax consequences of exercise of the Option and disposition of the Shares. THIS SUMMARY IS
NECESSARILY INCOMPLETE, AND THE TAX LAWS AND REGULATIONS ARE SUBJECT TO CHANGE. THE GRANTEE SHOULD CONSULT A TAX ADVISER BEFORE EXERCISING THE OPTION OR DISPOSING OF THE SHARES. 
  
 (a) Exercise of Incentive Stock Option. If the Option qualifies as an Incentive Stock Option, there will be no
regular federal income tax liability upon the exercise of the Option, although the excess, if any, of the Fair Market Value of the Shares on the date of exercise over the Exercise Price will be treated as income for purposes of the alternative
minimum tax for federal tax purposes and may subject the Grantee to the alternative minimum tax in the year of exercise. 
  
 (b) Exercise of Incentive Stock Option Following Disability. If the Grantee’s Continuous Service terminates as a result of Disability that is
not total and permanent disability as defined in Section 22(e)(3) of the Code, to the extent permitted on the date of termination, the Grantee must exercise an Incentive Stock Option within three (3) months of such termination for the Incentive
Stock Option to be qualified as an Incentive Stock Option. 
  
 (c)
Exercise of Non-Qualified Stock Option. On exercise of a Non-Qualified Stock Option, the Grantee will be treated as having received compensation income (taxable at ordinary income tax rates) equal to the excess, if any, of the Fair Market
Value of the Shares on the date of exercise over the Exercise Price. If the Grantee is an Employee or a former Employee, the Company will be required to withhold from the Grantee’s compensation or collect from the Grantee and pay to the
applicable taxing authorities an amount in cash equal to a percentage of this compensation income at the time of exercise, and may refuse to honor the exercise and refuse to deliver Shares if such withholding amounts are not delivered at the time of
exercise. 
  
 (d) Disposition of Shares. In the case of a
Non-Qualified Stock Option, if Shares are held for more than one year, any gain realized on disposition of the Shares will be treated as long-term capital gain for federal income tax purposes and subject to tax at a maximum rate of 20%. In the case
of an Incentive Stock Option, if Shares transferred pursuant to the Option are held for more than one year after receipt of the Shares and are disposed more than two years after the Date of Award, any gain realized on disposition of the Shares also
will be treated as capital gain for federal income tax purposes and subject to the same tax rates and holding periods that apply to Shares acquired upon exercise of a Non-Qualified Stock Option. If Shares purchased under an Incentive Stock Option
are disposed of prior to the expiration of such 
  

 4 

 one-year or two-year periods, any gain realized on such disposition will be treated as compensation income (taxable at
ordinary income rates) to the extent of the difference between the Exercise Price and the lesser of (i) the Fair Market Value of the Shares on the date of exercise, or (ii) the sale price of the Shares. 
  
 11. Entire Agreement: Governing Law. The Notice, the Plan and this
Option Agreement constitute the entire agreement of the parties with respect to the subject matter hereof and supersede in their entirety all prior undertakings and agreements of the Company and the Grantee with respect to the subject matter hereof,
and may not be modified adversely to the Grantee’s interest except by means of a writing signed by the Company and the Grantee. Nothing in the Notice, the Plan and this Option Agreement (except as expressly provided therein) is intended to
confer any rights or remedies on any persons other than the parties. The Notice, the Plan and this Option Agreement are to be construed in accordance with and governed by the internal laws of the State of California (as permitted by Section 1646.5
of the California Civil Code, or any similar successor provision) without giving effect to any choice of law rule that would cause the application of the laws of any jurisdiction other than the internal laws of the State of California to the rights
and duties of the parties. Should any provision of the Notice, the Plan or this Option Agreement be determined by a court of law to be illegal or unenforceable, such provision shall be enforced to the fullest extent allowed by law and the other
provisions shall nevertheless remain effective and shall remain enforceable. 
  
 12. Headings. The captions used in the Notice and this Option Agreement are inserted for convenience and shall not be deemed a part of the Option for construction or interpretation. 
  
 13. Dispute Resolution The provisions of this Section 13 shall be the
exclusive means of resolving disputes arising out of or relating to the Notice, the Plan and this Option Agreement. The Company, the Grantee, and the Grantee’s assignees pursuant to Section 8 (the “parties”) shall attempt in good
faith to resolve any disputes arising out of or relating to the Notice, the Plan and this Option Agreement by negotiation between individuals who have authority to settle the controversy. Negotiations shall be commenced by either party by notice of
a written statement of the party’s position and the name and title of the individual who will represent the party. Within thirty (30) days of the written notification, the parties shall meet at a mutually acceptable time and place, and
thereafter as often as they reasonably deem necessary, to resolve the dispute. If the dispute has not been resolved by negotiation, the parties agree that any suit, action, or proceeding arising out of or relating to the Notice, the Plan or this
Option Agreement shall be brought in the United States District Court for the Northern District of California located in the city of San Jose, California (or should such court lack jurisdiction to hear such action, suit or proceeding, in a
California state court in the County of Santa Clara) and that the parties shall submit to the jurisdiction of such court. The parties irrevocably waive, to the fullest extent permitted by law, any objection the party may have to the laying of venue
for any such suit, action or proceeding brought in such court. THE PARTIES ALSO EXPRESSLY WAIVE ANY RIGHT THEY HAVE OR MAY HAVE TO A JURY TRIAL OF ANY SUCH SUIT, ACTION OR PROCEEDING. If any one or more provisions of this Section 13 shall for any
reason be held invalid or unenforceable, it is the specific intent of the parties that such provisions shall be modified to the minimum extent necessary to make it or its application valid and enforceable. 
  

 5 

 14. Notices. Any notice required or permitted hereunder shall be given in writing and shall be
deemed effectively given upon personal delivery or upon deposit in the United States mail by certified mail (if the parties are within the United States) or upon deposit for delivery by an internationally recognized express mail courier service (for
international delivery of notice), with postage and fees prepaid, addressed to the other party at its address as shown beneath its signature in the Notice, or to such other address as such party may designate in writing from time to time to the
other party. 
  

 6 

 EXHIBIT A 
  
 PERICOM SEMICONDUCTOR CORPORATION 
  
 2001 STOCK INCENTIVE PLAN 
  
 EXERCISE NOTICE 
  
 Pericom Semiconductor Corporation 
 3545 North First Street 
 San Jose, CA 95134 
  
 Attention: Secretary 
  
 1.
Exercise of Option. Effective as of today,
                                ,
         the undersigned (the “Grantee”) hereby elects to exercise the Grantee’s option to purchase
                 shares of the Common Stock (the “Shares”) of Pericom Semiconductor Corporation (the “Company”) under and pursuant to the
Company’s 2001 Stock Incentive Plan, as amended from time to time (the “Plan”) and the [    ] Incentive [    ] Non-Qualified Stock Option Award Agreement (the “Option Agreement”) and
Notice of Grant of Stock Options and Option Agreement (the “Notice”) dated                     ,
            . Unless otherwise defined herein, the terms defined in the Plan shall have the same defined meanings in this Exercise Notice. 
  
 2. Representations of the Grantee. The Grantee acknowledges that the
Grantee has received, read and understood the Notice, the Plan, and the Option Agreement and agrees to abide by and be bound by their terms and conditions. 
  
 3. Rights as Stockholder. Until the stock certificate evidencing such Shares is issued (as evidenced by the appropriate entry on the books of the
Company or of a duly authorized transfer agent of the Company), no right to vote or receive dividends or any other rights as a stockholder shall exist with respect to the Shares, notwithstanding the exercise of the Option. The Company shall issue
(or cause to be issued) such stock certificate promptly after the Option is exercised. No adjustment will be made for a dividend or other right for which the record date is prior to the date the stock certificate is issued, except as provided in
Section 10 of the Plan. 
  
 4. Delivery of Payment. The
Grantee herewith delivers to the Company the full Exercise Price for the Shares, which, to the extent selected, shall be deemed to be satisfied by use of the broker-dealer sale and remittance procedure to pay the Exercise Price provided in Section
3(d) of the Option Agreement. 
  
 5. Tax Consultation. The
Grantee understands that the Grantee may suffer adverse tax consequences as a result of the Grantee’s purchase or disposition of the Shares. The Grantee represents that the Grantee has consulted with any tax consultants the Grantee deems
advisable in connection with the purchase or disposition of the Shares and that the Grantee is not relying on the Company for any tax advice 
  

 1 

 6. Taxes. The Grantee agrees to satisfy all applicable federal, state and local income and
employment tax withholding obligations and herewith delivers to the Company the full amount of such obligations or has made arrangements acceptable to the Company to satisfy such obligations. In the case of an Incentive Stock Option, the Grantee
also agrees, as partial consideration for the designation of the Option as an Incentive Stock Option, to notify the Company in writing within thirty (30) days of any disposition of any shares acquired by exercise of the Option if such disposition
occurs within two (2) years from the Date of Award or within one (1) year from the date the Shares were transferred to the Grantee. If the Company is required to satisfy any federal, state or local income or employment tax withholding obligations as
a result of such an early disposition, the Grantee agrees to satisfy the amount of such withholding in a manner that the Administrator prescribes. 
  
 7. Successors and Assigns. The Company may assign any of its rights under this Exercise Notice to single or multiple assignees, and this agreement
shall inure to the benefit of the successors and assigns of the Company. This Exercise Notice shall be binding upon the Grantee and his or her heirs, executors, administrators, successors and assigns. 
  
 8. Headings. The captions used in this Exercise Notice are inserted
for convenience and shall not be deemed a part of this agreement for construction or interpretation. 
  
 9. Dispute Resolution. The provisions of Section 13 of the Option Agreement shall be the exclusive means of resolving disputes arising out of or
relating to this Exercise Notice. 
  
 10. Governing Law;
Severability. This Exercise Notice is to be construed in accordance with and governed by the internal laws of the State of California (as permitted by Section 1646.5 of the California Civil Code, or any similar successor provision) without
giving effect to any choice of law rule that would cause the application of the laws of any jurisdiction other than the internal laws of the State of California to the rights and duties of the parties. Should any provision of this Exercise Notice be
determined by a court of law to be illegal or unenforceable, such provision shall be enforced to the fullest extent allowed by law and the other provisions shall nevertheless remain effective and shall remain enforceable. 
  
 11. Notices. Any notice required or permitted hereunder shall be given
in writing and shall be deemed effectively given upon personal delivery or upon deposit in the United States mail by certified mail, (if the parties are within the United States) or upon deposit for delivery by an internationally recognized express
mail courier service (for international delivery of notice) with postage and fees prepaid, addressed to the other party at its address as shown below beneath its signature, or to such other address as such party may designate in writing from time to
time to the other party. 
  
 12. Further Instruments. The
parties agree to execute such further instruments and to take such further action as may be reasonably necessary to carry out the purposes and intent of this agreement. 
  
 13. Entire Agreement. The Notice, the Plan, and the Option Agreement are incorporated herein by reference, and
together with this Exercise Notice constitute the entire agreement of the parties with respect to the subject matter hereof and supersede in their entirety 
  

 2 

 all prior undertakings and agreements of the Company and the Grantee with respect to the subject matter hereof, and may
not be modified adversely to the Grantee’s interest except by means of a writing signed by the Company and the Grantee. Nothing in the Notice, the Plan, the Option Agreement and this Exercise Notice (except as expressly provided therein) is
intended to confer any rights or remedies on any persons other than the parties. 
  

					
	 Submitted by:
	 	 Accepted by:

		
	 GRANTEE:
	 	 Pericom Semiconductor Corporation

			
	 	 	 By:
	 	  

	 	 	 	 
	
 (Signature)
	 	 Title:
	 	

			
	 Address:
	 	 Address:
	 	 
	  

	 	  
 3545 North First
Street
 San Jose, CA 95134

	
	 	 	 	 

  

 3

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