Document:

Exhibit 10.2

QUICKLOGIC
CORPORATION

1999
STOCK PLAN

1.             Purposes of the Plan.  The purposes of this 1999 Stock Plan are:

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

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

·                                          to
promote the success of the Company’s business.

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

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

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

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

(c)           “Board” means the Board of
Directors of the Company.

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

(e)           “Committee”  means a committee of Directors or other
individuals satisfying Applicable Laws appointed by the Board in accordance
with Section 4 of the Plan.

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

(g)           “Company” means QuickLogic
Corporation, a Delaware corporation.

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

(i)            “Director” means a member of
the Board.

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

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

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

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

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

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

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

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

(o)           “IPO Effective Date” means the
date upon which the Securities and Exchange Commission declares the initial
public offering of the Company’s common stock as effective.

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

 2
 

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

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

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

(t)            “Option Agreement” means an
agreement between the Company and an Optionee evidencing the terms and
conditions of an individual Option grant. 
The Option Agreement is subject to the terms and conditions of the Plan
and the Notice of Grant.

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

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

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

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

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

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

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

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

(cc)         “Section 16(b) “ means Section
16(b) of the Exchange Act.

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

(ee)         “Share” means a share of the
Common Stock, as adjusted in accordance with Section 13 of the Plan.

 3
 

(ff)           “Stock Purchase Right” means
the right to purchase Common Stock pursuant to Section 11 of the Plan, as
evidenced by a Notice of Grant and a Restricted Stock Purchase Agreement.

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

3.             Stock Subject to the Plan.  Subject to the provisions of Section 13 of
the Plan, the maximum aggregate number of Shares which may be optioned and sold
under the Plan is (i) 5,000,000 Shares, including any Shares which have been
reserved but unissued under the Company’s 1989 Stock Option Plan (as amended)
(the “1989 Plan”) as of the IPO Effective Date and (ii) any Shares returned to
the 1989 Plan as a result of termination of options under the 1989 Plan.  In addition, an annual increase shall be
added to the Plan on the first day of the Company’s fiscal year beginning in
2000 equal to the lesser of (i) 5,000,000 Shares, (ii) five-percent (5%) of the
outstanding shares on such date or (iii) a lesser amount determined by the
Board.  The Shares may be authorized, but
unissued, or reacquired Common Stock.

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

4.             Administration of the Plan.

(a)           Procedure.

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

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

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

 4
 

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

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

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

(i)            to determine the Fair Market Value;

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

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

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

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

(vi)          to reduce the exercise price of any
Option or Stock Purchase Right to the then current Fair Market Value if the
Fair Market Value of the Common Stock covered by such Option or Stock Purchase
Right shall have declined since the date the Option or Stock Purchase Right was
granted;

(vii)         to institute an Option Exchange
Program;

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

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

 5
 

(x)            to modify or amend each Option or
Stock Purchase Right (subject to Section 15(c) of the Plan) or Restricted
Stock, including the discretionary authority to extend the post-termination
exercisability period of Options longer than is otherwise provided for in the Plan;

(xi)           to allow Optionees to satisfy
withholding tax obligations by electing to have the Company withhold from the
Shares to be issued upon exercise of an Option or Stock Purchase Right that
number of Shares having a Fair Market Value equal to the amount required to be
withheld.  The Fair Market Value of the
Shares to be withheld shall be determined on the date that the amount of tax to
be withheld is to be determined.  All
elections by an Optionee to have Shares withheld for this purpose shall be made
in such form and under such conditions as the Administrator may deem necessary
or advisable;

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

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

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

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

6.             Limitations.

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

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

 6

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

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

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

(iii)          The foregoing limitations shall be
adjusted proportionately in connection with any change in the Company’s
capitalization as described in Section 13.

(iv)          If an Option is cancelled in the same
fiscal year of the Company in which it was granted (other than in connection
with a transaction described in Section 13), the cancelled Option will be
counted against the limits set forth in subsections (i) and (ii) above.  For this purpose, if the exercise price of an
Option is reduced, the transaction will be treated as a cancellation of the
Option and the grant of a new Option.

7.             Term of Plan.  Subject to Section 19 of the Plan, the Plan
shall become effective upon its adoption by the Board.  It shall continue in effect for a term of ten
(10) years unless terminated earlier under Section 15 of the Plan.

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

9.             Option Exercise Price and
Consideration.

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

(i)            In the case of an Incentive Stock
Option

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

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

 7
 

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

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

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

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

(i)            cash;

(ii)           check;

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

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

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

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

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

10.           Exercise of Option.

(a)           Procedure for Exercise;
Rights as a Shareholder.  Any Option
granted hereunder shall be exercisable according to the terms of the Plan and
at such times and under such conditions as determined by the Administrator and
set forth in the Option Agreement. 
Unless the Administrator provides otherwise, vesting of Options granted
hereunder shall be

 8
 

tolled during any unpaid leave of absence.  An Option may not be exercised for a fraction
of a Share.

An Option shall be deemed exercised when the Company
receives: (i) written or electronic notice of exercise (in accordance with the
Option Agreement) from the person entitled to exercise the Option, and (ii)
full payment for the Shares with respect to which the Option is exercised.  Full payment may consist of any consideration
and method of payment authorized by the Administrator and permitted by the
Option Agreement and the Plan.  Shares
issued upon exercise of an Option shall be issued in the name of the Optionee
or, if requested by the Optionee, in the name of the Optionee and his or her
spouse.  Until the Shares are issued (as
evidenced by the appropriate entry on the books of the Company or of a duly
authorized transfer agent of the Company), no right to vote or receive
dividends or any other rights as a shareholder shall exist with respect to the
Optioned Stock, notwithstanding the exercise of the Option.  The Company shall issue (or cause to be
issued) such Shares promptly after the Option is exercised.  No adjustment will be made for a dividend or
other right for which the record date is prior to the date the Shares are
issued, except as provided in Section 13 of the Plan.

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

(b)           Termination of Relationship
as a Service Provider or Provision of Notice of Employment Termination.  If an Optionee (i) ceases to provide
ongoing service as a Service Provider (for any reason and regardless of any
appropriate court finding such termination unfair or irregular on any basis
whatsoever), other than upon the Optionee’s death or Disability, or
(ii) is provided with notice of termination of employment (for any
reason and regardless of any appropriate court finding the related termination
unfair or irregular on any basis whatsoever) and ceases to provide ongoing
service during the notice period, the Optionee may exercise his or her Option
within such period of time as is specified in the Option Agreement to the extent
that the Option is vested on the earlier of the date of
such cessation as a Service Provider or the last date of ongoing
service after receiving a notice of termination of employment  (the  earlier of these dates is referred to herein
as the “Vesting Cessation Date”), but in no event later than the expiration of
the term of such Option as set forth in the Option Agreement.  In the absence of a specified time in the
Option Agreement, the Option shall remain exercisable for three (3) months
following the Vesting Cessation Date.  
If, on the Vesting Cessation Date, the Optionee is not vested
as to his or her entire Option, the Shares covered by the unvested portion of
the Option shall revert to the Plan (unless the Administrator determines
otherwise).  If, after the Vesting
Cessation Date, the Optionee does not exercise his or her Option within
the time specified by the Administrator, the Option shall terminate, and the
Shares covered by such Option shall revert to the Plan.

(c)           Disability of Optionee.  If an Optionee ceases to be a Service
Provider as a result of the Optionee’s Disability, the Optionee may exercise
his or her Option within such period of time as is specified in the Option
Agreement to the extent the Option is vested on the date of termination (but in
no event later than the expiration of the term of such Option as set forth in
the Option Agreement).  In the absence of
a specified time in the Option Agreement, the

 9
 

Option shall remain exercisable for twelve (12) months
following the Optionee’s termination. 
If, on the date of termination, the Optionee is not vested as to his or
her entire Option, the Shares covered by the unvested portion of the Option
shall revert to the Plan.  If, after
termination, the Optionee does not exercise his or her Option within the time
specified herein, the Option shall terminate, and the Shares covered by such
Option shall revert to the Plan.

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

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

11.           Stock Purchase Rights.

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

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

 10
 

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

(d)           Rights as a Shareholder.  Once the Stock Purchase Right is exercised,
the purchaser shall have the rights equivalent to those of a shareholder, and
shall be a shareholder when his or her pur­chase is entered upon the records of
the duly authorized trans­fer agent of the Company.  No adjustment will be made for a divi­dend or
other right for which the record date is prior to the date the Stock Purchase Right
is exercised, except as provided in Section 13 of the Plan.

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

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

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

(b)           Dissolution or Liquidation.  In the event of the proposed dissolution or
liquidation of the Company, the Administrator shall notify each Optionee as
soon as practicable prior to the effective date of such proposed
transaction.  The Administrator in its
discretion may provide for an Optionee to have the right to exercise his or her
Option until ten (10) days prior to

 11
 

such transaction as to all of the Optioned Stock
covered thereby, including Shares as to which the Option would not otherwise be
exercisable.  In addition, the
Administrator may provide that any Company repurchase option applicable to any
Shares purchased upon exercise of an Option or Stock Purchase Right shall lapse
as to all such Shares, provided the proposed dissolution or liquidation takes
place at the time and in the manner contemplated.  To the extent it has not been previously exer­cised,
an Option or Stock Purchase Right will terminate immediately prior to the
consum­mation of such proposed action.

(c)           Merger or Asset Sale.

(i)            Stock Options and Stock Purchase
Rights.  In the event of a merger of the Company with or into another
corporation, or the sale of substantially all of the assets of the Company,
each outstanding Option and Stock Purchase Right shall be assumed or an
equivalent option or right substituted by the successor corporation or a Parent
or Subsidiary of the successor corporation. 
In the event that the successor corporation refuses to assume or
substitute for the Option or Stock Purchase Right, the Optionee shall fully
vest in and have the right to exercise the Option or Stock Purchase Right as to
all of the Optioned Stock, including shares to which it would not otherwise be
vested or exercisable. If an Option or Stock Purchase Right becomes fully
vested and exercisable in lieu of assumption or substitution in the event of a
merger or sale of assets, the Administrator shall notify the Optionee in
writing or electronically that the Option or Stock Purchase Right shall be
fully vested and exercisable for a period of fifteen (15) days from the date of
such notice, and the Option or Stock Purchase Right shall terminate upon the
expiration of such period.  For the
purposes of this paragraph, the Option or Stock Purchase Right shall be
considered assumed if, following the merger or sale of assets, the option or
right confers the right to purchase or receive, for each Share of Optioned
Stock subject to the Option or Stock Purchase Right immediately prior to the
merger or sale of assets, the consideration (whether stock, cash, or other
securities or property) received in the merger or sale of assets by holders of
Common Stock for each Share held on the effective date of the transaction (and
if holders were offered a choice of consideration, the type of consideration
chosen by the holders of a majority of the outstanding Shares); provided,
however, that if such consideration received in the merger or sale of assets is
not solely common stock of the successor corporation or its Parent, the
Administrator may, with the consent of the successor corporation, provide for
the consideration to be received upon the exercise of the Option or Stock
Purchase Right, for each Share of Optioned Stock subject to the Option or Stock
Purchase Right, to be solely common stock of the successor corporation or its
Parent equal in fair market value to the per share consideration received by
holders of Common Stock in the merger or sale of assets.

(ii)           Restricted Stock.  In the event of a merger of the Company with
or into another corporation, or the sale of substantially all of the assets of
the Company, each outstanding Restricted Stock award shall be assumed or
an equivalent Restricted Stock award substituted by the successor corporation
or a Parent or Subsidiary of the successor corporation.  In the event that the successor corporation
refuses to assume or substitute for the Restricted Stock award, the Participant
shall fully vest in the Restricted Stock, including shares which would not
otherwise be vested.  For the purposes of
this paragraph, a Restricted Stock award shall be considered assumed if,
following the merger or sale of assets, the award confers

 12
 

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

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

15.           Amendment and Termination of the Plan.

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

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

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

16.           Conditions Upon Issuance of Shares.

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

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

 13
 

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

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

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

 14Exhibit 10.3

 

QUICKLOGIC CORPORATION

1999 EMPLOYEE STOCK PURCHASE PLAN

 

As
Amended and Restated November 10, 2006

 

1.                     PURPOSE.  The purpose of the Plan is to provide
employees of the Company and its Designated Subsidiaries with an opportunity to
purchase Common Stock of the
Company through accumulated payroll deductions. 
It is the intention of the Company to have the Plan qualify as an “Employee
Stock Purchase Plan” under Section 423 of the Internal Revenue Code of 1986, as
amended.  The provisions of the Plan,
accordingly, shall be construed so as to extend and limit participation in a
manner consistent with the requirements of that section of the Code.

2.                     DEFINITIONS.

(a)           “Board” shall
mean the Board of Directors of the Company.

(b)           “Code” shall
mean the Internal Revenue Code of 1986, as amended.

(c)           “Common Stock”
shall mean the common stock of the Company.

(d)           “Company” shall mean
QuickLogic Corporation and any Designated Subsidiary of the Company.

(e)           “Compensation” shall
mean all base straight time gross earnings, overtime and incentive/variable
compensation, but exclusive of bonuses and other compensation.

(f)            “Designated Subsidiary”
shall mean any Subsidiary which has been designated by the Board from time to
time in its sole discretion as eligible to participate in the Plan.

(g)           “Employee”
shall mean any individual who is an Employee of the Company for tax purposes
whose customary employment with the Company is at least twenty (20) hours per week and more than five
(5) months in any calendar year.  For
purposes of the Plan, the employment relationship shall be treated as
continuing intact while the individual is on sick leave or other leave of
absence approved by the Company.  Where
the period of leave exceeds 90 days and the individual’s right to reemployment
is not guaranteed either by statute or by contract, the employment relationship
shall be deemed to have terminated on the 91st day of such leave.

(h)           “Enrollment Date”
shall mean the first Trading Day of each Offering Period.

(i)            “Exercise Date”
shall mean the last Trading Day of each Offering Period.

(j)            “Fair Market
Value” shall mean, as of any date, the value of Common Stock determined as
follows:

(i)            If the Common Stock is listed
on any established stock exchange or a national market system, including
without limitation the Nasdaq National
Market or the Nasdaq SmallCap Market of the Nasdaq Stock Market, its Fair
Market Value shall be the closing sales price for such 

 

stock (or the closing bid, if no sales were
reported) as quoted on such exchange or system for the last market trading day
on the date of such determination, as reported in The Wall
Street Journal or such other source as the Board deems reliable;

 

(ii)           If the Common Stock is
regularly quoted by a recognized securities dealer but selling prices are not
reported, its Fair Market Value shall
be the mean of the closing bid and asked prices for the Common Stock on the
date of such determination, as reported in The Wall Street Journal or
such other source as the Board deems reliable; or

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

(k)           “Offering Periods”
shall mean the periods of approximately six (6) months during which an option
granted pursuant to the Plan may be exercised, commencing on the first Trading Day on or after May 15
and November 15 of each year and terminating on the last Trading Day in the
periods ending six months later.  For
example, an Offering Period under the Plan shall commence with the first
Trading Day on or after November 15, 2005 and end on the last Trading Day on or
before May 14, 2006.  The duration and
timing of Offering Periods may be changed pursuant to Section 4 of this Plan.

(l)            “Participant” means an Eligible Employee who (a)
has become a Participant in the Plan pursuant to Section 5 and (b) has not
ceased to be a Participant pursuant to Section 10 or Section 11.

(m)          “Plan” shall mean this
1999 Employee Stock Purchase Plan.

(n)           “Purchase Price” shall
mean 85% of the Fair Market Value of a share of Common Stock as determined
pursuant to Section 4; provided,
however, that the Purchase Price may be adjusted by the Board pursuant to
Section 20.

(o)           “Reserves”
shall mean the number of shares of Common Stock covered by each option under
the Plan which have not yet been exercised and the number of shares of Common Stock which have
been authorized for issuance under the Plan but not yet placed under option.

(p)           “Subsidiary”
shall mean a corporation, domestic or foreign, of which not less than 50% of
the voting shares are held by the Company or a Subsidiary, whether or not such corporation
now exists or is hereafter organized or acquired by the Company or a
Subsidiary.

(q)           “Trading Day”
shall mean a day on which national stock exchanges and the Nasdaq System are
open for trading.

3.             ELIGIBILITY.

(a)                   Any
Employee who shall be employed by the Company on a given Enrollment Date shall
be eligible to participate in the Plan.

 2
  
 

 

(b)            Any provisions of the Plan to
the contrary notwithstanding, no Employee shall be granted an option under the
Plan (i) to the extent that, immediately
after the grant, such Employee (or any other person whose stock would be
attributed to such Employee pursuant to Section 424(d) of the Code) would own
capital stock of the Company and/or hold outstanding options to purchase such
stock possessing five percent (5%) or more of the total combined voting power
or value of all classes of the capital stock of the Company or of any
Subsidiary, or (ii) to the extent that his or her rights to purchase stock
under all employee stock purchase plans of the Company and its subsidiaries
accrues at a rate which exceeds Twenty-Five Thousand Dollars ($25,000) worth of
stock (determined at the fair market value of the shares at the time such
option is granted) for each calendar year in which such option is outstanding
at any time.

 

4.             OFFERING PERIODS.

(a)           The Plan shall be implemented
by either of the following Offering Periods, which shall be determined by the
Board prior to the applicable Offering Period:

(i)            A six (6) month
Offering Period commencing on the first Trading Day on or after May 15 and
November 15 each year, or on such other date as the Board shall determine, and
continuing thereafter until terminated in accordance with Section 20 hereof or
changed pursuant to this Section 4(a) and with a Purchase Price equal to 85% of
the Fair Market Value of a share of Common Stock on the Exercise Date (a “Purchase
Date Offering Period”); or

(ii)           A six (6) month
Offering Period commencing on the first Trading Day on or after May 15 and
November 15 each year, or on such other date as the Board shall determine, and
continuing thereafter until terminated in accordance with Section 20 hereof or
changed pursuant to this Section 4(a) and with a Purchase Price equal to 85% of
the Fair Market Value of a share of Common Stock on the Enrollment Date or on
the Exercise Date, whichever is lower (a “Look-Back Offering Period”).

Notwithstanding the foregoing, if the Board does not determine the type
of Offering Period prior to the start of the applicable Offering Period, the
default Offering Period shall be the Purchase Date Offering Period as described
in Section 4(a)(i) above.

(b)           The Board shall have
the power to change the duration of Offering Periods (including the
commencement dates thereof) and to implement Offering Periods with multiple
purchase periods with respect to future offerings without shareholder approval
if such change is announced at least five (5) days prior to the scheduled beginning
of the first Offering Period to be affected thereafter.

5.             PARTICIPATION.

(a)           An eligible Employee may
become a Participant in the Plan by completing a subscription agreement
authorizing payroll deductions in the form of Exhibit A to this Plan and filing
it with the Company’s payroll office prior to the applicable Enrollment Date.

(b)           Payroll deductions
for a Participant shall commence on the first payroll following the Enrollment
Date and shall end on the last payroll in the Offering Period to which such
authorization is applicable, unless sooner terminated by the Participant as
provided in Section 10 hereof.

 3
  
 

 

(c)           Notwithstanding any provision in the
Plan, in the event that the Company’s Form S-8 registration statement with
respect to the issuance of Common Stock under the Plan is ineffective as of the
Exercise Date scheduled to occur on November 14, 2006, the Offering Period
scheduled to begin on November 15, 2006 (the “New Offering Period”) shall be
modified as follows: (i) The commencement of the New Offering Period shall be
delayed so as to begin on the first Trading Day two (2) weeks following the
date upon which the Company’s Form S-8 registration statement with respect to
the issuance of Common Stock under the Plan becomes effective (the “S-8
Effective Date”) and such New Offering Period shall continue until the last
Trading Day in the Period ending May 14, 2007; (ii) the Company shall establish
an open enrollment period for the New Offering Period that shall begin no
earlier than the S-8 Effective Date and continue until no later than two
(2) weeks following the S-8 Effective Date; (iii) Payroll deductions for
an Employee enrolled in the new Offering Period shall commence with the first
paycheck in the Offering Period; (iv) Employees who fail to submit a
subscription agreement during the open enrollment window for the new Offering
Period or whose subscription rate does not exceed zero percent (0%) will be
automatically terminated from participating in the New Offering Period; and (v)
the New Offering Period shall be a Look-Back Offering Period.

 

6.             PAYROLL
DEDUCTIONS.

(a)           At the time a Participant
files his or her subscription agreement, he or she shall elect to have payroll
deductions made on each pay day during the Offering Period in an amount not
exceeding twenty percent (20%) of the Compensation which he or she receives on
each pay day during the Offering Period.

(b)           All payroll deductions made
for a Participant shall be credited to his or her account under the Plan and
shall be withheld in whole percentages only. 
A Participant may not make any additional payments into such account.

(c)           A Participant may discontinue
his or her participation in the Plan as provided in Section 10 hereof, or may
(i) increase or decrease the rate of his or her payroll deductions during a
Purchase Date Offering Period, or (ii) only decrease the rate of his or her
payroll deductions during a Look-Back Offering Period, in either case by
completing or filing with the Company a new subscription agreement authorizing
a change in payroll deduction rate.  The
Board may, in its discretion, limit the number of participation rate changes
during any Offering Period.  The change
in rate shall be effective with the first full payroll period following five
(5) business days after the Company’s receipt of the new subscription agreement
unless the Company elects to process a given change in participation more
quickly.  A Participant’s subscription
agreement shall remain in effect for successive Offering Periods unless
terminated as provided in Section 10 hereof.

(d)           Notwithstanding the foregoing,
to the extent necessary to comply with Section 423(b)(8) of the Code and
Section 3(b) hereof, a Participant’s payroll deductions may be decreased to
zero percent (0%) at any time during an Offering Period.  Payroll deductions shall recommence at the
rate provided in such Participant’s subscription agreement at the beginning of
the first Offering Period which is scheduled to end in the following calendar
year, unless terminated by the Participant as provided in Section 10 hereof.

 4
  
 

 

(e)           At the time the option is exercised, in whole or in part,
or at the time some or all of the Company’s Common Stock issued under the Plan
is disposed of, the Participant must make adequate provision for amounts not in
excess of the minimum statutory federal, state, or other tax withholding
obligations, if any, which arise upon the exercise of the option or the
disposition of the Common Stock.  At any
time, the Company may, but shall not be obligated to, withhold from the
Participant’s compensation amounts not in excess of the applicable minimum
statutory withholding obligations, including any withholding required to make
available to the Company any tax deductions or benefits attributable to sale or
early disposition of Common Stock by the Employee.  If the Company allows the Participant to
settle such tax withholding obligations by remitting to the Company shares of
Common Stock issued upon exercise, then the Participant may not elect to
withhold amounts in excess of the applicable minimum statutory federal, state,
or other tax obligations withheld at the time of exercise or disposal.

 

7.             GRANT OF OPTION.  On the Enrollment Date of each Offering
Period, each eligible Employee participating in such Offering Period shall be
granted an option to purchase on each Exercise Date during such Offering Period
(at the applicable Purchase Price) up to a number of shares of the Company’s
Common Stock determined by dividing such Employee’s payroll deductions
accumulated prior to such Exercise Date and retained in the Participant’s
account as of the Exercise Date by the applicable Purchase Price; provided that
in no event shall an Employee be permitted to purchase during each Offering
Period more than 20,000 shares of the Company’s Common Stock (subject to any
adjustment pursuant to Section 19), and provided further that such purchase
shall be subject to the limitations set forth in Sections 3(b) and 12
hereof.  The Board may, for future Offering
Periods, increase or decrease, in its absolute discretion, the maximum number
of shares of the Company’s Common Stock an Employee may purchase during each
Offering Period.  Exercise of the option
shall occur as provided in Section 8 hereof, unless the Participant has
withdrawn pursuant to Section 10 hereof. 
The option shall expire on the last day of the Offering Period.

8.             EXERCISE OF OPTION.

(a)           Unless a Participant withdraws
from the Plan as provided in Section 10 hereof, his or her option for the
purchase of shares shall be exercised automatically on the Exercise Date, and
the maximum number of full shares subject to option shall be purchased for such
Participant at the applicable Purchase Price with the accumulated payroll
deductions in his or her account.  No
fractional shares shall be purchased; any payroll deductions accumulated in a
Participant’s account which are not sufficient to purchase a full share shall
be retained in the Participant’s account for the subsequent Offering Period,
subject to earlier withdrawal by the Participant as provided in Section 10
hereof.  Any other monies left over in a
Participant’s account after the Exercise Date shall be returned to the
Participant.  During a Participant’s
lifetime, a Participant’s option to purchase shares hereunder is exercisable
only by him or her.

(b)           If the Board determines that, on a
given Exercise Date, the number of shares with respect to which options are to
be exercised may exceed (i) the number of shares of Common Stock that were
available for sale under the Plan on the Enrollment Date of the applicable
Offering Period, or (ii) the number of shares available for sale under the Plan
on such Exercise Date, the Board may in its sole discretion (x) provide that
the Company shall make a pro rata allocation of the shares of

 5
  
 

 

Common Stock available for purchase on such
Enrollment Date or Exercise Date, as applicable, in as uniform a manner as
shall be practicable and as it shall determine in its sole discretion to be
equitable among all Participants exercising options to purchase Common Stock on
such Exercise Date, and continue all Offering Periods then in effect, or (y)
provide that the Company shall make a pro rata allocation of the shares
available for purchase on such Enrollment Date or Exercise Date, as applicable,
in as uniform a manner as shall be practicable and as it shall determine in its
sole discretion to be equitable among all Participants exercising options to
purchase Common Stock on such Exercise Date, and terminate any or all Offering
Periods then in effect pursuant to Section 20 hereof.  The Company may make pro rata allocation of
the shares available on the Enrollment Date of any applicable Offering Period
pursuant to the preceding sentence, notwithstanding any authorization of additional
shares for issuance under the Plan by the Company’s shareholders subsequent to
such Enrollment Date.

 

9.             DELIVERY. 
As promptly as practicable after each Exercise Date on which a purchase
of shares occurs, the Company shall arrange the delivery to each Participant,
as appropriate, of a certificate representing the shares purchased upon
exercise of his or her option.

10.           WITHDRAWAL.

(a)           A Participant may withdraw all
but not less than all the payroll deductions credited to his or her account and
not yet used to exercise his or her option under the Plan at any time by giving
written notice to the Company in the form of Exhibit B to this Plan.  All of the Participant’s payroll deductions
credited to his or her account shall be paid to such Participant promptly after
receipt of notice of withdrawal and such Participant’s option for the Offering
Period shall be automatically terminated, and no further payroll deductions for
the purchase of shares shall be made for such Offering Period.  If a Participant withdraws from an Offering
Period, payroll deductions shall not resume at the beginning of the succeeding
Offering Period unless the Participant delivers to the Company a new
subscription agreement.

(b)           A Participant’s withdrawal from an
Offering Period shall not have any effect upon his or her eligibility to
participate in any similar plan which may hereafter be adopted by the Company
or in succeeding Offering Periods which commence after the termination of the
Offering Period from which the Participant withdraws.

11.           TERMINATION OF EMPLOYMENT.  Upon a Participant’s ceasing to be an
Employee, for any reason, he or she shall be deemed to have elected to withdraw
from the Plan and the payroll deductions credited to such Participant’s account
during the Offering Period but not yet used to exercise the option shall be
returned to such Participant or, in the case of his or her death, to the person
or persons entitled thereto under Section 15 hereof, and such Participant’s
option shall be automatically terminated. 
The preceding sentence notwithstanding, a Participant who receives
payment in lieu of notice of termination of employment shall be treated as
continuing to be an Employee for the Participant’s customary number of hours
per week of employment during the period in which the Participant is subject to
such payment in lieu of notice.

12.           INTEREST. 
No interest shall accrue on the payroll deductions of a Participant in
the Plan.

 6
  
 

 

13.           STOCK.

 

(a)           Subject to
adjustment upon changes in capitalization of the Company as provided in Section
19 hereof, the maximum number of shares of the Company’s Common Stock which
shall be made available for sale under the Plan shall be 2,000,000 shares, plus
an annual increase to be added on each anniversary date of the adoption of the
Plan equal to the lesser of (i) 1,500,000 shares, (ii) 4% of the outstanding
shares on such date or (iii) a lesser amount determined by the Board.

(b)           The Participant
shall have no interest or voting right in shares covered by his option until
such option has been exercised.

(c)           Shares to be delivered
to a Participant under the Plan shall be registered in the name of the
Participant or in the name of the Participant and his or her spouse.

14.           ADMINISTRATION.  The Plan shall be administered by the Board
or a committee of members of the Board appointed by the Board.  The Board or its committee shall have full
and exclusive discretionary authority to construe, interpret and apply the
terms of the Plan, to determine eligibility and to adjudicate all disputed claims
filed under the Plan.  Every finding,
decision and determination made by the Board or its committee shall, to the
full extent permitted by law, be final and binding upon all parties.

15.           DESIGNATION OF
BENEFICIARY.

(a)           A Participant
may file a written designation of a beneficiary who is to receive any shares
and cash, if any, from the Participant’s account under the Plan in the event of
such Participant’s death subsequent to an Exercise Date on which the option is
exercised but prior to delivery to such Participant of such shares and cash.  In addition, a Participant may file a written
designation of a beneficiary who is to receive any cash from the Participant’s
account under the Plan in the event of such Participant’s death prior to
exercise of the option.  If a Participant
is married and the designated beneficiary is not the spouse, spousal consent
shall be required for such designation to be effective.

(b)           Such designation of beneficiary may
be changed by the Participant at any time by written notice.  In the event of the death of a Participant
and in the absence of a beneficiary validly designated under the Plan who is
living at the time of such Participant’s death, the Company shall deliver such
shares and/or cash to the executor or administrator of the estate of the
Participant, or if no such executor or administrator has been appointed (to the
knowledge of the Company), the Company, in its discretion, may deliver such
shares and/or cash to the spouse or to any one or more dependents or relatives
of the Participant, or if no spouse, dependent or relative is known to the
Company, then to such other person as the Company may designate.

16.           TRANSFERABILITY.  Neither payroll deductions credited to a
Participant’s account nor any rights with regard to the exercise of an option
or to receive shares under the Plan may be assigned, transferred, pledged or
otherwise disposed of in any way (other than by will, the laws of descent and
distribution or as provided in Section 15 hereof) by the Participant.  Any such attempt at assignment, transfer, pledge
or other disposition shall be without effect, except that the Company

 7
  
 

 

may
treat such act as an election to withdraw funds from an Offering Period in
accordance with Section 10 hereof.

 

17.           USE
OF FUNDS.  All payroll deductions
received or held by the Company under the Plan may be used by the Company for
any corporate purpose, and the Company shall not be obligated to segregate such
payroll deductions.

 

18.           REPORTS. 
Individual accounts shall be maintained for each Participant in the
Plan.  Statements of account shall be
given to participating Employees at least annually, which statements shall set
forth the amounts of payroll deductions, the Purchase Price, the number of
shares purchased and the remaining cash balance, if any.

19.           ADJUSTMENTS UPON CHANGES IN CAPITALIZATION,
DISSOLUTION, LIQUIDATION, MERGER OR ASSET SALE.

(a)           Changes in Capitalization.  Subject to any required action by the
shareholders of the Company, the Reserves, the maximum number of shares each
Participant may purchase each Offering Period (pursuant to Section 7), as well
as the price per share and the number of shares of Common Stock covered by each
option under the Plan which has not yet been exercised shall be proportionately
adjusted for any increase or decrease in the number of issued shares of Common
Stock resulting from a stock split, reverse stock split, stock dividend,
combination or reclassification of the Common Stock, or any other increase or
decrease in the number of shares of Common Stock effected without receipt of consideration
by the Company; provided, however, that conversion of any convertible
securities of the Company shall not be deemed to have been “effected without
receipt of consideration.”  Such
adjustment shall be made by the Board, whose determination in that respect
shall be final, binding and conclusive. 
Except as expressly provided herein, no issuance by the Company of
shares of stock of any class, or securities convertible into shares of stock of
any class, shall affect, and no adjustment by reason thereof shall be made with
respect to, the number or price of shares of Common Stock subject to an option.

(b)           Dissolution Or Liquidation.  In the event of the proposed dissolution or
liquidation of the Company, the Offering Period then in progress shall be shortened
by setting a new Exercise Date (the “New Exercise Date”), and shall terminate
immediately prior to the consummation of such proposed dissolution or
liquidation, unless provided otherwise by the Board.  The New Exercise Date shall be before the
date of the Company’s proposed dissolution or liquidation.  The Board shall notify each Participant in
writing, at least ten (10) business days prior to the New Exercise Date, that
the Exercise Date for the Participant’s option has been changed to the New
Exercise Date and that the Participant’s option shall be exercised
automatically on the New Exercise Date, unless prior to such date the
Participant has withdrawn from the Offering Period as provided in Section 10
hereof.

(c)           Merger Or Asset Sale.  In the event of a proposed sale of all or
substantially all of the assets of the Company, or the merger of the Company
with or into another corporation, each outstanding option shall be assumed or
an equivalent option substituted by the successor corporation or a Parent or
Subsidiary of the successor corporation. 
In the event that the successor corporation refuses to assume or
substitute for the option, any Offering Periods then in progress shall be
shortened by setting a new Exercise Date (the “New Exercise Date”) on which
such Offering Period

 8
  
 

 

shall end. 
The New Exercise Date shall be before the date of the Company’s proposed
sale or merger.  The Board shall notify
each Participant in writing, at least ten (10) business days prior to the New
Exercise Date, that the Exercise Date for the Participant’s option has been
changed to the New Exercise Date and that the Participant’s option shall be
exercised automatically on the New Exercise Date, unless prior to such date the
Participant has withdrawn from the Offering Period as provided in Section 10
hereof.

 

20.           AMENDMENT
OR TERMINATION.

(a)           The Board of Directors of the
Company may at any time and for any reason terminate or amend the Plan.  Except as provided in Section 19 hereof, no
such termination can affect options previously granted, provided that an
Offering Period may be terminated by the Board of Directors on any Exercise
Date if the Board determines that the termination of the Offering Period or the
Plan is in the best interests of the Company and its shareholders.  Except as provided in Section 19 and this
Section 20 hereof, no amendment may make any change in any option theretofore
granted which adversely affects the rights of any Participant.  To the extent necessary to comply with
Section 423 of the Code (or any successor rule or provision or any other
applicable law, regulation or stock exchange rule), the Company shall obtain
shareholder approval in such a manner and to such a degree as required.

(b)           Without shareholder consent
and without regard to whether any Participant rights may be considered to have
been “adversely affected,” the Board (or its committee) shall be entitled to
change the Offering Periods, limit the frequency and/or number of changes in
the amount withheld during an Offering Period, establish the exchange ratio
applicable to amounts withheld in a currency other than U.S. dollars, permit
payroll withholding in excess of the amount designated by a Participant in
order to adjust for delays or mistakes in the Company’s processing of properly
completed withholding elections, establish reasonable waiting and adjustment
periods and/or accounting and crediting procedures to ensure that amounts
applied toward the purchase of Common Stock for each Participant properly
correspond with amounts withheld from the Participant’s Compensation, and
establish such other limitations or procedures as the Board (or its committee)
determines in its sole discretion advisable which are consistent with the Plan.

(c)           In the event the Board
determines that the ongoing operation of the Plan may result in unfavorable
financial accounting consequences, the Board may, in its discretion and, to the
extent necessary or desirable, modify or amend the Plan to reduce or eliminate
such accounting consequence including, but not limited to:

(i)            altering the Purchase Price
for any Offering Period including an Offering Period underway at the time of
the change in Purchase Price;

(ii)           shortening any Offering Period
so that it ends on a new Exercise Date, including an Offering Period underway
at the time of the Board action; and

(iii)          allocating shares.

 9
  
 

 

Such
modifications or amendments shall not require stockholder approval or the
consent of any Plan Participants.

 

21.           NOTICES. 
All notices or other communications by a Participant to the Company
under or in connection with the Plan shall be deemed to have been duly given
when received in the form specified by the Company at the location, or by the
person, designated by the Company for the receipt thereof.

22.           CONDITIONS UPON ISSUANCE OF SHARES.  Shares shall not be issued with respect to an
option unless the exercise of such option and the issuance and delivery of such
shares pursuant thereto shall comply with all applicable provisions of law,
domestic or foreign, including, without limitation, the Securities Act of 1933,
as amended, the Securities Exchange Act of 1934, as amended, the rules and
regulations promulgated thereunder, and the requirements of any stock exchange
upon which the shares may then be listed, and shall be further subject to the
approval of counsel for the Company with respect to such compliance.

As a condition to the
exercise of an option, the Company may require the person exercising such
option 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 of the aforementioned
applicable provisions of law.

23.           TERM OF PLAN.  The Plan shall become effective upon the
earlier to occur of its adoption by the Board of Directors or its approval by
the shareholders of the Company.  It
shall continue in effect for a term of ten (10) years unless sooner terminated
under Section 20 hereof.

 

 10
  

 
EXHIBIT A
QUICKLOGIC CORPORATION
 
1999 EMPLOYEE STOCK PURCHASE PLAN
SUBSCRIPTION AGREEMENT
 

	
   

  	
  Original Application (New
  Enrollment)

  	
   

  	
  Enrollment Date:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Change in Payroll
  Deduction Rate

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Change of Beneficiary(ies)

  	
   

  	
   

  

 

1.                                                                                                                  hereby
elects to participate in the QuickLogic Corporation 1999 Employee Stock
Purchase Plan (the “Employee Stock Purchase Plan”) and subscribes to purchase
shares of the Company’s Common Stock in accordance with this Subscription
Agreement and the Employee Stock Purchase Plan.

2.                           I
hereby authorize payroll deductions from each paycheck in the amount of                   % of my Compensation on
each payday (1 to 20%) during the Offering Period in accordance with the Employee
Stock Purchase Plan.  (Please note that
no fractional percentages are permitted and only one reduction is allowed
during each 6-month period according to our plan document.)

3.                           I
understand that said payroll deductions shall be accumulated for the purchase
of shares of Common Stock at the applicable Purchase Price determined in
accordance with the Employee Stock Purchase Plan.  I understand that if I do not withdraw from
an Offering Period, any accumulated payroll deductions will be used to
automatically exercise my option.

4.                           I
have received a copy of the complete Employee Stock Purchase Plan.  I understand that my participation in the
Employee Stock Purchase Plan is in all respects subject to the terms of the
Plan.

5.                           Shares
purchased for me under the Employee Stock Purchase Plan should be issued in the
name of                                                                            (Employee or Employee and Spouse only).

6.                           I
understand that if I dispose of any shares received by me pursuant to the Plan
within 2 years after the Enrollment Date (the first day of the Offering Period
during which I purchased such shares), I will be treated for federal income tax
purposes as having received ordinary income at the time of such disposition in
an amount equal to the excess of the fair market value of the shares at the time
such shares were purchased by me over the price which I paid for the
shares.  I hereby
agree to notify the Company in writing within 30 days after the date of any
disposition of my shares and I will make adequate provisions for Federal, state
or other tax withholding obligations, if any, which arise upon the disposition
of the Common Stock.  The
Company may, but will not be obligated to, withhold from my compensation the
minimum statutory amounts of applicable withholding obligation including any
withholding 

 

 necessary to
make available to the Company any tax deductions or benefits attributable to
sale or early disposition of Common Stock by me.  If I dispose of such shares at any time after
the expiration of the 2-year holding period, I understand that I will be
treated for federal income tax purposes as having received income only at the
time of such disposition, and that such income will be taxed as ordinary income
only to the extent of an amount equal to the lesser of (1) the excess of the
fair market value of the shares at the time of such disposition over the
purchase price which I paid for the shares, or (2) 15% of the fair market value
of the shares on the first day of the Offering Period.  The remainder of the gain, if any, recognized
on such disposition will be taxed as capital gain.

7.                           I
hereby agree to be bound by the terms of the Employee Stock Purchase Plan.  The effectiveness of this Subscription
Agreement is dependent upon my eligibility to participate in the Employee Stock
Purchase Plan.

8.                           In
the event of my death, I hereby designate the following as my beneficiary(ies)
to receive all payments and shares due me under the Employee Stock Purchase
Plan:

NAME:  (Please print)
---------------------------------------------
(First)        (Middle)       (Last)
 
 --------------------------------------    ------------------------------------
Relationship
 
-------------------------------------
(Address)
 
Employee’s Social
Security Number:
 
----------------------------------------------------
Employee’s Address:
----------------------------------------------------
----------------------------------------------------
----------------------------------------------------
I UNDERSTAND THAT THIS SUBSCRIPTION AGREEMENT SHALL REMAIN IN EFFECT THROUGHOUT SUCCESSIVE OFFERING PERIODS UNLESS TERMINATED BY ME.
Dated:
----------------    ---------------------------------------------------
Signature of Employee
 
-----------------------------------------------------
Spouse’s Signature (If beneficiary other than spouse)

 2
  

 
EXHIBIT B
QUICKLOGIC CORPORATION
 
1999 EMPLOYEE STOCK PURCHASE PLAN
NOTICE OF WITHDRAWAL
 

The undersigned
Participant in the Offering Period of the QuickLogic Corporation 1999 Employee
Stock Purchase Plan which began on ____________, ______ (the “Enrollment Date”) hereby
notifies the Company that he or she hereby withdraws from the Offering
Period.  He or she hereby directs the
Company to pay to the undersigned as promptly as practicable all the payroll
deductions credited to his or her account with respect to such Offering
Period.  The undersigned understands and
agrees that his or her option for such Offering Period will be automatically
terminated.  The undersigned understands further
that no further payroll deductions will be made for the purchase of shares in
the current Offering Period and the undersigned shall be eligible to
participate in succeeding Offering Periods only by delivering to the Company a
new Subscription Agreement.

Name and Address of Participant:
------------------------------------------
------------------------------------------
------------------------------------------
Signature:
------------------------------------------
Date:
-------------------------------------------

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00119-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00119-of-00352.parquet"}]]