Document:

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                                                                    EXHIBIT 10.1

                              EMPLOYMENT AGREEMENT

         THIS EMPLOYMENT AGREEMENT (this "Agreement") is made and entered into
as of this 2nd day of June, 2003 (the "Effective Date"), by and between Intrepid
Capital Corporation, a Delaware corporation, and its wholly-owed subsidiary,
Intrepid Capital Management, Inc., a Florida corporation (collectively referred
to herein as the "Company"), and Forrest Travis, a resident of the State of
Florida ("Employee").

                              W I T N E S S E T H:

         WHEREAS, the parties wish to modify Employee's employment relationship
with the Company; and

         WHEREAS, Company desires to employ Employee and Employee desires to
accept employment by Company through the Term (as defined below) upon the terms
and conditions hereinafter set forth;

         NOW, THEREFORE, for and in consideration of the mutual covenants and
agreements hereinafter set forth, and other good and valuable consideration, the
adequacy, receipt and sufficiency of which are hereby acknowledged, and
intending to be legally bound hereby, the parties hereto agree as follows:

1. RESIGNATION. Employee, upon the parties' execution of this Agreement, hereby
resigns his position as Chief Executive Officer of the Company.

2. EMPLOYMENT TERM. The Company shall employ Employee, and Employee shall be so
employed, with the title of "Chairman" for the purpose of engaging in sales and
sales management activities on behalf of the Company for a term commencing on
the Effective Date and ending on the seventh anniversary of the Effective Date
(the "Term"), unless otherwise extended, renewed or terminated pursuant to the
terms hereof. Consistent with such position, Employee shall, sell the investment
products of Intrepid Capital Management, Inc., and supervise all sales personnel
and activities.

3. TIME AND EFFORTS. Employee shall perform the duties described above in
accordance with generally accepted industry standards and shall be responsible
for determining the sales strategy and activities necessary to reasonably
perform such duties.

4. COMPENSATION.

         a. ANNUAL SALARY. Employee's annual salary ("Annual Salary") during the
Term hereof shall be Two Hundred Fifty Thousand Dollars ($250,000), payable in
accordance with the Company's standard payment terms. Notwithstanding the
foregoing, the Board of Directors may, in its sole discretion, increase the
Annual Salary during the Term.

         b. COMMISSION PAYMENTS. Employee shall also be paid override
"Commissions" equal to:

                  (i) ten percent (10%) of Revenue (as defined below) from
Company clients utilizing Company's services as a result of Employee's
activities on behalf of the Company from January 1, 2003 through the end of the
Term; and

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                  (ii) five percent (5%) of Revenue from Company clients
utilizing Company's services as a result of activities performed on behalf of
the Company by anyone other than himself.

Any and all Commissions due to Employee under Section 4b(i) in respect of
Revenue received by the Company between January 1, 2003 and the Effective Date
shall be paid by Company to Employee immediately upon execution of this
Agreement. All other Commissions due hereunder shall be paid by the Company in
accordance with its commission payroll policies.

For purposes of this Agreement, "Revenue" shall mean gross payments received
from a client for services performed by the Company net of charges and actual
subsequent credits or allowances for discounts, rebates, reductions, or other
actual diminution.

         c. VACATION. Employee shall be entitled to thirty (30) days of paid
vacation annually during his employment with the Company pursuant to the terms
and provisions of this Agreement.

         d. WITHHOLDING, FICA, FUTA, ETC. Any amount to be paid to Employee
under the provisions of this Agreement shall be subject to, and reduced by, any
applicable federal, state or local taxes imposed by law. Notwithstanding the
above, Employee shall be liable for any and all federal, state, local and
foreign taxes imposed as a result of any compensation, payments, or other
benefits issued hereunder.

         e. CAR ALLOWANCE. Employee shall be entitled to receive an automobile
allowance of Nine Hundred and No/100 Dollars ($900.00) to cover the cost of
Employee's car lease payment, mileage and related operating costs. The
automobile allowance shall be payable monthly by the Company to Employee.

         f. PERSONAL ASSISTANT. The Company shall employ a personal assistant
selected by Employee and provided to assist Employee in the performance of the
duties hereunder. The Company agrees to compensate such assistant in a manner
reasonably comparable to other employees employed in the Company's industry who
have similar skill and experience.

         g. EXPENSE ACCOUNT. The Company shall provide Employee with a Company
credit card and the expense account in the amount of the actual expenses
incurred on the Company's behalf. Employee shall utilize the expense account by
charging expenses related to the performance of Employee's duties set forth
herein to the Company credit card provided to Employee.

5. BENEFITS. Employee's eligibility to participate in all fringe benefit
programs of the Company offered to its professional employees (including,
without limitation, life insurance, disability insurance, dental and medical
coverage, and vacation), shall continue after the Effective Date, and Employee
shall retain any seniority or other privilege that has accrued or is accruing to
Employee as a result of his relationship with the Company prior to the Effective
Date, including, without limitation, Company payment of Employee's membership in
the country clubs and professional associations that Employee is a member of as
of the Effective Date (or any other country club(s) or professional associations
in lieu of the current country clubs or professional associations in which
Employee is currently a member).

6. TERMINATION. The parties agree that Employee's Term of employment may be
terminated at any time, for any reason or for no reason, with Cause or without
Cause (as defined below) by the Company or Employee.

         a. TERMINATION WITH CAUSE. The parties agree that Employee's employment
may be terminated at any time with notice by the Company for Cause ("Termination
With Cause"). For purposes of this Agreement, the term "Cause" shall mean any
one of the following events:

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                  (i) Employee's knowing and willful misconduct that has a
material adverse effect on the Company's business and that is not remedied
within thirty (30) days after Employee's receipt of notice thereof; or

                  (ii) Employee's commission of a felony or an illegal act
involving moral turpitude or fraud.

         b. TERMINATION WITHOUT CAUSE. "Termination Without Cause" means any
termination of employment by the Company that is not a "Termination With Cause"
as defined above. A resignation or voluntary departure from the Company by
Employee shall not be deemed a Termination Without Cause under this Agreement.

         c. POST TERMINATION OBLIGATIONS OF COMPANY. Except as specifically
provided herein, upon any termination of employment of Employee, Employee shall
only be entitled to receive all amounts due under Section 4 of this Agreement
through his date of termination, and no additional remuneration shall be owed to
Employee. Notwithstanding the foregoing, in the event of a Termination Without
Cause by the Company, the Company shall pay to Employee an amount equal to (i)
one hundred percent (100%) of his Annual Salary as in effect at the date of
termination multiplied by the number of years (and/or any fractional portion
thereof) remaining from the date of Employee's termination until the end of the
Term and (ii) Commissions due to Employee under Section 4.b. for two (2) years
following the date of Employee's termination. Any amounts described in Section
6.c(i) shall be paid to Employee in a single lump-sum payment, subject to all
applicable federal, state and/or local taxes and/or withholdings, within ten
(10) days of the date of termination.

         d. POST TERMINATION OBLIGATIONS OF EMPLOYEE. Upon termination of
employment for any reason, Employee shall return immediately to the Company all
documents, property, and other records of the Company, and all copies thereof.

7. CONFIDENTIAL INFORMATION.

         a. The Company may disclose to Employee certain Confidential
Information. Employee acknowledges and agrees that the Confidential Information
is the sole and exclusive property of the Company (or a third party providing
such information to the Company) and that the Company owns all worldwide
copyrights, trade secret rights, confidential and proprietary information
rights, and all other property rights therein.

         b. Employee acknowledges and agrees that the disclosure of the
Confidential Information to Employee does not confer upon Employee any license,
interest or rights of any kind in or to the Confidential Information.

         c. Employee agrees to use the Confidential Information solely for the
benefit of the Company. Except in the performance of services for the Company,
Employee will hold in confidence and not use, reproduce, distribute, transmit,
or transfer the Confidential Information or any portion thereof communicated,
discussed, delivered or made available by the Company to or received by
Employee, whether orally or in written form, without the prior written consent
of the Company.

         d. Employee acknowledges that his obligations under this Agreement with
regard to the Confidential Information remain in effect during the Term and for
a period of two (2) years thereafter. The foregoing obligations shall not apply
if and to the extent that: (a) Employee establishes that the information
communicated was already known to Employee, without

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obligation to keep it confidential, at the time of its receipt from the Company;
(b) Employee establishes that the information communicated was received by
Employee in good faith from a third party lawfully in possession thereof and
having no obligation to keep such information confidential; (c) was
independently developed by Employee without violating this Agreement; or (d)
Employee establishes that the information communicated was publicly known at the
time of its receipt by Employee or has become publicly known other than by a
breach of this Agreement or other action by Employee.

         e. As used herein, "Confidential Information" means information, other
than Trade Secrets, that is of value to its owner and is treated as
confidential.

         f. In the event of any breach or threatened breach of the provisions of
this Section or the preceding Section 6, the Company may apply to any court of
competent jurisdiction to enjoin such breach or threatened breach. Any such
remedy shall be in addition to Company's remedies at law under such
circumstances.

8. INDEMNIFICATION. The Company shall indemnify and hold harmless Employee in
accordance with the indemnification obligations of the Company to the extent
extended to other officers of the Company.

9. NOTICES. Any notice given hereunder shall be in writing and be sent via
certified mail, overnight courier service (with proof of delivery), or facsimile
(with confirmation of receipt) and addressed to the appropriate party at the
address, or sent to the facsimile number of the appropriate party, set forth
below or at such other address, or facsimile number, as the party shall
designate from time to time in a written notice. Notice shall be effective three
(3) days after sent by certified mail, one (1) business day after sent by
overnight courier service or upon receipt if sent by facsimile (receipt
confirmed):

      if to Employee:                   if to Company:

                                        Intrepid Capital Corporation and/or
      Forrest Travis                    Intrepid Capital Management, Inc.
      4934 Prince Edward Rd.            3652 South Third Street, Ste. 200
      Jacksonville, FL  32210           Jacksonville Beach, FL  32250
                                        Attention:  President & CEO

10. BINDING EFFECT; ASSIGNABILITY. This Agreement shall inure to the benefit of
and be binding upon the Company, its successors and assigns. The Company may
assign this Agreement, without Employee's consent, to any entity that controls
or is controlled by the Company, provided, however, that Employee's duties and
obligations hereunder are not materially increased or decreased as a result of
such assignment. Employee acknowledges that these services are unique and
personal. Accordingly, Employee may not assign any of his rights or delegate any
of his duties or obligations under this Agreement and any such attempt to assign
shall be void.

11. WAIVER; AMENDMENT. No waiver or amendment of this Agreement, or any
provision hereof, shall be valid unless such waiver or amendment is in writing
and signed by the party sought to be charged therewith.

12. GOVERNING LAW. This Agreement shall be construed in accordance with the
substantive laws of the State of Florida without regard to the conflict of laws
principles thereof.

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13. SEVERABILITY. In the event that any provision of this Agreement shall be
determined to be invalid by a court of competent jurisdiction, such
determination shall in no way affect the validity or enforceability of any other
provisions hereof.

14. ENTIRE AGREEMENT; MISCELLANEOUS. The parties acknowledge and agree that they
are not relying on any representations, oral or written, other than those
expressly contained herein. This Agreement supersedes all prior agreements,
proposals, negotiations, conversations discussions and course of dealing between
the parties with respect to the subject matter hereof. Paragraph headings are
for convenience of reference only and are not intended to create substantive
rights or obligations. This Agreement may be executed in counterparts, each of
which shall be deemed an original, and together shall constitute one and the
same Agreement.

         IN WITNESS WHEREOF, this Agreement has been duly executed by the
undersigned as of the day and year first above written.

                                  COMPANY:

                                  INTREPID CAPITAL CORPORATION

                                  By: /s/ Mark F. Travis
                                      ------------------------------
                                             MARK TRAVIS
                                  Title: President and CEO

                                  INTREPID CAPITAL MANAGEMENT, INC.

                                  By: /s/ Mark F. Travis
                                      ------------------------------
                                              MARK TRAVIS
                                  Title: President and CEO

                                  EMPLOYEE:

                                  By: /s/ Forrest Travis
                                     -------------------------------
                                            FORREST TRAVIS
                                  Title:  Chairman

                                       9Exhibit 10.13

                        MICROCHIP TECHNOLOGY INCORPORATED
                       1997 NONSTATUTORY STOCK OPTION PLAN

                        AS AMENDED THROUGH MARCH 3, 2003

                                    ARTICLE I

     1.1. PURPOSES OF THE PLAN. The purposes of this  Nonstatutory  Stock Option
Plan are:

     o    to attract and retain the best available personnel for positions of
          substantial responsibility;

     o    to provide additional incentive to Employees and Consultants, and

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

     Options granted under the Plan will be Nonstatutory Stock Options.

     1.2. DEFINITIONS. As used herein, the following definitions shall apply:

          (a) "ADMINISTRATOR" means the Board or the Employee Committee as shall
     be administering the Plan, in accordance with Section 1.4 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 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) "COMMON STOCK" means the common stock, par value $0.001 per share,
     of the Company.

          (f) "COMPANY" means Microchip Technology Incorporated, a Delaware
     corporation.

          (g) "CONSULTANT" means any person, including an advisor but not
     including Directors, engaged by the Company or a Parent or Subsidiary to
     render services to such entity.

          (h) "DIRECTOR" means a member of the Board.

          (i) "DISABILITY" means total or permanent disability as defined in
     Code Section 22(e)(3).

          (j) "EMPLOYEE" means any person, excluding 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
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     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. Neither service as a Director nor payment of
     a director's fee by the Company shall be sufficient to constitute
     "employment" by the Company.

          (k) "EMPLOYEE COMMITTEE" means a committee of Directors appointed by
     the Board in accordance with Section 1.4 of the Plan.

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

          (m) "FAIR MARKET VALUE" means, as of any date, the value of Common
     Stock determined as follows:

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

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

         (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) "NOTICE OF GRANT" means a written or electronic notice evidencing
     certain terms and conditions of an individual Option grant. The Notice of
     Grant is part of the Option Agreement.

          (o) "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 or who is otherwise considered an "officer" under
     applicable NASD or stock exchange rules.

          (p) "OPTION" means a nonstatutory stock option granted pursuant to the
     Plan, that is not intended to qualify as an incentive stock option within
     the meaning of Code Section 422 and the regulations promulgated thereunder.

          (q) "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.

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          (r) "OPTIONED STOCK" means the Common Stock subject to an Option.

          (s) "OPTIONEE" means the holder of an outstanding Option granted under
     the Plan.

          (t) "PARENT" means "parent corporation," whether now or hereafter
     existing, as defined in Code Section 424(e).

          (u) "PLAN" means this 1997 Nonstatutory Stock Option Plan.

          (v) "SERVICE PROVIDER" means an Employee or Consultant.

          (w) "SHARE" means a share of the Common Stock, as adjusted in
     accordance with Section 1.3(b), 2.2 and 2.3 of the Plan.

          (x) "SUBSIDIARY" means a "subsidiary corporation," whether now or
     hereafter existing, as defined in Code Section 424(f).

     1.3. STOCK SUBJECT TO THE PLAN.

          (a) RESERVATION OF SHARES; UNPURCHASED SHARES. Subject to the
     provisions of Sections 1.3(b), 2.2 and 2.3 of the Plan, the maximum
     aggregate number of Shares which may be optioned and sold under the Plan is
     30,087,500 Shares. The Shares may be authorized, but unissued, or
     reacquired Common Stock including shares repurchased by the Company on the
     open market.

          If an Option expires or becomes unexercisable without having been
     exercised in full, the unpurchased Shares which were subject thereto shall
     become available for future grant or sale under the Plan (unless the Plan
     has terminated).

          If Shares otherwise issuable under the Plan are withheld by the
     Company in satisfaction of the withholding taxes incurred in connection
     with the exercise of an outstanding Option, then the number of Shares
     available for issuance shall be reduced by the gross number of Shares for
     which the Option is exercised, and not by the net number of Shares actually
     issued to the Optionee.

          (b) ADJUSTMENTS FOR ORGANIC CHANGES. Should any change be made to the
     Common Stock issuable under the Plan by reason of any stock split, stock
     dividend, recapitalization, combination of shares, exchange of shares or
     other change affecting the outstanding Common Stock as a class without the
     Company's receipt of consideration, then appropriate adjustments shall be
     made to (i) the maximum number and/or class of securities issuable under
     the Plan, and (ii) the number and/or class of securities and price per
     share in effect under each Option outstanding under the Plan. Such
     adjustments to the outstanding Options are to be effected in a manner which
     shall preclude the enlargement or dilution of rights and benefits under
     such Options. The adjustments determined by the Board shall be final,
     binding and conclusive.

     1.4. ADMINISTRATION OF THE PLAN.

          (a) ADMINISTRATION OF THE PLAN. The Plan shall be administered by the
     Board. The Board, however, may at any time appoint a committee (the
     "Employee Committee") of one or more persons who are members of the Board
     and delegate to such Employee Committee the power, in whole or in part, to

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     administer the Plan. Unless otherwise required by law, decisions among
     members of an Administrator shall be by majority vote.

          (b) TERM ON COMMITTEE. Members of the Employee Committee shall serve
     for such period of time as the Board may determine and shall be subject to
     removal by the Board at any time. The Board at any time may terminate the
     functions of the Employee Committee and reassume all powers and authority
     previously delegated to the Employee Committee.

          (c) POWERS OF THE ADMINISTRATOR. Subject to the provisions of the
     Plan, the Administrator shall have the authority, in its discretion:

          (i)  to determine the Fair Market Value of the Common Stock;

          (ii) to select the Service Providers to whom Options may be granted
               hereunder;

         (iii) to determine whether and to what extent Options are granted
               hereunder;

          (iv) to determine the number of shares of Common Stock to be covered
               by each Option granted hereunder;

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

          (vi) to determine the terms and conditions, not inconsistent with the
               terms of the Plan, of any award granted hereunder. Such terms and
               conditions include, but are not limited to, the exercise price,
               the time or times when Options 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 the shares of Common Stock
               relating thereto, based in each case on such factors as the
               Administrator, in its sole discretion, shall determine;

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

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

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

          (x)  to modify or amend each Option (subject to Section 3.1(b) of the
               Plan), including the discretionary authority to extend the
               post-termination exercisability period of Options longer than is
               otherwise provided for in the Plan as provided in Section 2.1(g);

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

         (xii) to determine the terms and restrictions applicable to Options;

        (xiii) to allow Optionees to satisfy withholding tax obligations as
               provided in Section 3.2; and

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

          (d) 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.

          (e) INDEMNIFICATION. In addition to such other rights of
     indemnification as they may have, the members of each Administrator shall
     be indemnified and held harmless by the Company to the extent permitted
     under applicable law, for, from and against all costs and expenses
     reasonably incurred by them in connection with any action, legal proceeding
     to which any such member thereof may be party, by reason of any action
     taken or failed to be taken, under or in connection with the Plan or any
     rights granted thereunder, and against all amounts paid by them in
     settlement thereof or paid by them in satisfaction of a judgment of any
     such action, suit or proceeding, except a judgment based upon a finding of
     bad faith.

     1.5. ELIGIBLE PERSONS UNDER THE PLAN. The persons eligible to participate
in the Plan are Employees and Consultants.

                                   ARTICLE II
                                  OPTION GRANTS

     2.1. TERMS AND CONDITIONS OF OPTIONS.

          (a) GENERAL. Options granted to eligible persons pursuant to the Plan
     shall be authorized by action of the Administrator. Each granted Option
     shall be evidenced by one or more instruments in the form approved by the
     Administrator; provided, however, that each such instrument shall comply
     with the terms and conditions specified below.

          (b) OPTION PRICE. The Option price per Share shall be fixed by the
     Administrator and shall in no event be less than one hundred percent (100%)
     of the Fair Market Value of such Common Stock on the grant date.

          (c) PAYMENT OF OPTION PRICE. The Option price shall become immediately
     due upon exercise of the Option and shall be payable in one of the
     following alternative forms specified below:

          (i)  full payment in cash or check drawn to the Company's order;

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          (ii) full payment through a broker-dealer sale and remittance
               procedure pursuant to which the Optionee (A) shall provide
               irrevocable written instructions to a designated brokerage firm
               to effect the immediate sale 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 Option price
               payable for the purchased Shares plus all applicable Federal and
               State income and employment taxes required to be withheld by the
               Company in connection with such purchase 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.

               For purposes of this Section 2.1(c), the Exercise Date shall be
               the date on which written notice of the Option exercise is
               delivered to the Company. Except to the extent the sale and
               remittance procedure is utilized in connection with the exercise
               of the Option, payment of the Option price for the purchased
               Shares must accompany such notice.

          (d) TERM AND EXERCISE OF OPTIONS. Each Option granted under the Plan
     shall be exercisable at any time or times and during such period as is
     determined by the Administrator and set forth in the instrument evidencing
     the grant. No such Option, however, shall have a maximum term in excess of
     ten (10) years from the grant date. During the lifetime of the Optionee,
     the Option shall be exercisable only by the Optionee and shall not be
     assignable or transferable by the Optionee other than by will or by the
     laws of descent and distribution following the Optionee's death.

          (e) TERMINATION OF SERVICE. The following provisions shall govern the
     exercise period applicable to any outstanding Options held by the Optionee
     at the time of cessation of Service or death:

          (i)  Should an Optionee cease Service for any reason (including
               Disability but not including death) while holding one or more
               outstanding Options under the Plan, then none of those Options
               shall (except to the extent otherwise provided pursuant to
               Section 2.1(f) below) remain exercisable for more than a ninety
               (90) day period (or such shorter or longer period determined by
               the Administrator and set forth in the instrument evidencing the
               grant, but not to exceed twelve (12) months) measured from the
               date of such cessation of Service.

          (ii) Any Option held by the Optionee under the Plan and exercisable in
               whole or in part on the date of said Optionee's death may be
               subsequently exercised by the personal representative of the
               Optionee's estate or by the person or persons to whom the Option
               is transferred pursuant to the Optionee's will or in accordance
               with the laws of descent and distribution. With respect to
               Options granted on or after April 1, 2002, all such unvested
               Options shall immediately vest upon the Optionee's death if such
               Optionee's death occurs while Optionee is in Service to the
               Company. Any exercise following Optionee's death while Optionee
               is in Service to the Company, however, must occur prior to the

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<PAGE>
               earlier of six months following the date of Optionee's death or
               the specified expiration date of the Option term. Upon the
               occurrence of the earlier event, the Option shall terminate and
               cease to be outstanding.

         (iii) Under no circumstances, however, shall any such Option be
               exercisable after the specified expiration date on the Option
               term.

          (iv) During the applicable post-Service exercise period, the Option
               shall not be exercisable for more than the number of shares (if
               any) in which the Optionee is vested at the time of Optionee's
               cessation of Service (less any Option Shares subsequently
               purchased by the Optionee prior to death). Upon the expiration of
               the limited post-Service exercise period or (if earlier) upon the
               specified expiration date of the Option term, each such Option
               shall terminate and cease to be outstanding with respect to any
               vested shares for which the Option has not otherwise been
               exercised. However, each outstanding Option shall immediately
               terminate and cease to be outstanding, at the time of the
               Optionee's cessation of Service, with respect to any shares for
               which the Option is not otherwise at that time exercisable or in
               which the Optionee is not otherwise at that time vested.

          (v)  Should (A) the Optionee's service be terminated for misconduct
               (including, but not limited to, any act of dishonesty, willful
               misconduct, fraud or embezzlement) or (B) the Optionee make any
               unauthorized use or disclosure of confidential information or
               trade secrets of the Company or any Parent or Subsidiary, then in
               any such event all outstanding Options held by the Optionee under
               the Plan shall terminate immediately and cease to be outstanding.

          (f) DISCRETION TO ACCELERATE VESTING. The Administrator shall have
     complete discretion, exercisable either at the time the Option is granted
     or at any time while the Option remains outstanding, to permit one or more
     Options held by the Optionee under this Plan to be exercised, during the
     limited post-Service exercise period applicable under Section 2.1(e) above,
     not only with respect to the number of vested shares of Common Stock for
     which each such Option is exercisable at the time of the Optionee's
     cessation of Service but also with respect to one or more subsequent
     installments of vested shares for which the Option would otherwise have
     become exercisable had such cessation of Service not occurred.

          (g) DISCRETION TO EXTEND EXERCISE PERIOD. The Administrator shall also
     have full power and authority to extend the period of time for which the
     Option is to remain exercisable following the Optionee's cessation of
     Service or death from the limited period in effect under Section 2.1(e)
     above to such greater period of time as the Administrator shall deem
     appropriate. In no event, however, shall such Option be exercisable after
     the specified expiration date of the Option term.

          (h) DEFINITIONS. For purposes of the foregoing provisions of this
     Section 2.1 and for all other purposes under the Plan:

                                       7
<PAGE>
          (i)  The Optionee shall (except to the extent otherwise specifically
               provided in the applicable Option Agreement) be deemed to remain
               in SERVICE for so long as such individual renders services on a
               periodic basis to the Company (or any Parent or Subsidiary) in
               the capacity of an Employee or a Consultant.

          (ii) The Optionee shall be considered to be an Employee for so long as
               Optionee remains in the employ of the Company or one or more
               Parent or Subsidiary corporations, subject to the control and
               direction of the employer entity not only as to the work to be
               performed but also as to the manner and method of performance.

          (i) STOCKHOLDER RIGHTS. An Optionee shall have no stockholder rights
     with respect to any Shares covered by the Option until such individual
     shall have exercised the Option and paid the Option price for the purchased
     Shares.

     2.2. CORPORATE TRANSACTIONS.

          (a) DEFINITION. For purposes of this Plan, any of the following
     stockholder approved transactions to which the Company is a party shall be
     considered a "Corporate Transaction":

          (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 in complete liquidation or
               dissolution of the Company, or

         (iii) 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 person or persons different from
               those who held such securities immediately prior to such merger.

          (b) ACCELERATION OF OPTION. Upon the stockholder approval of a
     Corporate Transaction, each Option which is at the time outstanding under
     the Plan shall automatically accelerate so that each such Option shall,
     immediately prior to the specified effective date for the Corporate
     Transaction, become fully exercisable with respect to the total number of
     shares of Common Stock at the time subject to such Option and may be
     exercised for all or any portion of such shares. However, an outstanding
     Option under the Plan shall not so accelerate if and to the extent: (A)
     such Option is, in connection with the Corporate Transaction, either to be
     assumed by the successor corporation or parent thereof or to be replaced
     with a comparable option to purchase shares of the capital stock of the
     successor corporation or parent thereof, (B) such Option is to be replaced
     with a cash incentive program of the successor corporation which preserves
     the option spread existing at the time of the Corporate Transaction and
     provides for subsequent payout in accordance with the same vesting schedule
     applicable to such Option, or (C) the acceleration of such Option is
     subject to other limitations imposed by the Administrator at the time of

                                       8
<PAGE>
     the option grant. The determination of option comparability under clause
     (A) above shall be made by the Administrator, and its determination shall
     be final, binding and conclusive.

          (c) TERMINATION OF OPERATIONS. Upon the consummation of the Corporate
     Transaction, all outstanding options under the Plan shall terminate and
     cease to be outstanding, except to the extent assumed by the successor
     corporation or its parent company.

          (d) ADJUSTMENTS ON ASSUMPTION OR CONTINUATION. Each outstanding Option
     under the Plan which is assumed in connection with the Corporate
     Transaction or is otherwise to continue in effect shall be appropriately
     adjusted, immediately after such Corporate Transaction, to apply and
     pertain to the number and class of securities which would have been issued
     to the Option holder, in consummation of such Corporate Transaction, had
     such person exercised the Option immediately prior to such Corporate
     Transaction. Appropriate adjustments shall also be made to the Option price
     payable per share, provided the aggregate Option price payable for such
     securities shall remain the same. In addition, the class and number of
     securities available for issuance under the Plan following the consummation
     of the Corporate Transaction shall be appropriately adjusted.

          (e) DISCRETION TO ACCELERATE. The Administrator shall have the
     discretion, exercisable either in advance of any actually-anticipated
     Corporate Transaction or at the time of an actual Corporate Transaction, to
     provide (upon such terms as it may deem appropriate) for the automatic
     acceleration of one or more outstanding Options granted under the Plan
     which are assumed or replaced in the Corporate Transaction and do not
     otherwise accelerate at the time, in the event the Optionee's Service
     should subsequently terminate within a designated period following the
     effective date of such Corporate Transaction.

          (f) PLAN NOT TO AFFECT COMPANY. The grant of Options under the Plan
     shall in no way affect the right of the Company to adjust, reclassify,
     reorganize or otherwise change its capital or business structure or to
     merge, consolidate, dissolve, liquidate or sell or transfer all or any part
     of its business or assets.

     2.3. CHANGE IN CONTROL.

          (a) DEFINITION. For purposes of this Plan, a Change in Control shall
     be deemed to occur in the event:

          (i)  any person or related group of persons (other than the Company or
               a person that directly or indirectly controls, is controlled by,
               or is under common control with, the Company) directly or
               indirectly acquires beneficial ownership (within the meaning of
               Rule 13d-3 of the 1934 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 stockholders which the Board
               does not recommend such stockholders to accept; or

          (ii) there is a change in the composition of the Board over a period
               of twenty-four (24) consecutive 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 proxy contests for the
               election of Board members, to be comprised of individuals who
               either (A) have been Board members continuously since the
               beginning of such period or (B) have been elected or nominated

                                       9
<PAGE>
               for election as Board members during such period by at least a
               majority of the Board members described in clause (A) who were
               still in office at the time such election or nomination was
               approved by the Board.

          (b) DISCRETION TO ACCELERATE. The Administrator shall have the
     discretionary authority, exercisable either in advance of any actually
     anticipated Change in Control or at the time of an actual Change in
     Control, to provide for the automatic acceleration of one or more
     outstanding Options under the Plan upon the occurrence of the Change in
     Control. The Administrator shall also have full power and authority to
     condition any such option acceleration upon the subsequent termination of
     the Optionee's Service within a specified period following the Change in
     Control.

          (c) EXERCISE RIGHTS. Any Options accelerated in connection with the
     Change in Control shall remain fully exercisable until the expiration or
     sooner termination of the Option term.

                                   ARTICLE III
                                  MISCELLANEOUS

     3.1. AMENDMENT AND TERMINATION OF THE PLAN.

          (a) AMENDMENT AND TERMINATION. The Board may at any time amend, alter,
     suspend or terminate the Plan.

          (b) 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.

     3.2. TAX WITHHOLDING.

          (a) GENERAL. The Company's obligation to deliver Shares of Common
     Stock upon the exercise of Options for such Shares under the Plan shall be
     subject to the satisfaction of all applicable Federal, State and local
     income tax and employment tax withholding requirements.

          (b) SHARES TO PAY FOR WITHHOLDING. An Administrator may, in its
     discretion and in accordance with the provisions of this Section 3.2(b) and
     such supplemental rules as the Administrator may from time to time adopt,
     provide any or all holders of Options under the Plan with the right to use
     Shares in satisfaction of all or part of the Federal, State and local
     income tax and employment tax liabilities incurred by such Optionees in
     connection with the exercise of their Options (the "Taxes"). Such right may
     be provided to any such Optionee in either or both of the following
     formats:

          (i)  STOCK WITHHOLDING. The Optionee may be provided with the election
               to have the Company withhold, from the Shares otherwise issuable
               upon the exercise of such Option, a portion of these Shares with
               an aggregate Fair Market Value equal to the percentage of the

                                       10
<PAGE>
               applicable Taxes (not to exceed one hundred percent (100%))
               designated by the holder.

          (ii) STOCK DELIVERY. The Administrator may, in its discretion, provide
               the Optionee with the election to deliver to the Company, at the
               time the Option is exercised, one or more Shares previously
               acquired by such individual (other than pursuant to the
               transaction triggering the Taxes) with an aggregate Fair Market
               Value equal to the percentage of the Taxes incurred in connection
               with such Option exercise (not to exceed one hundred percent
               (100%)) designated by the Optionee.

     3.3. EFFECTIVE DATE AND TERM OF PLAN. The Plan is effective as of November
10, 1997 (the "Effective Date"). It shall continue in effect until November 10,
2013, unless sooner terminated under Section 3.1 of the Plan.

     3.4. USE OF PROCEEDS. Any cash proceeds received by the Company from the
sale of Shares pursuant to Option grants under the Plan shall be used for
general corporate purposes.

     3.5. CONDITIONS UPON ISSUANCE OF SHARES.

          (a) LEGAL COMPLIANCE. Shares shall not be issued pursuant to the
     exercise of an Option unless the exercise of such Option 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, 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.

          (c) SECURITIES REGISTRATION. No shares of Common Stock or other assets
     shall be issued or delivered under this Plan unless and until there shall
     have been compliance with all applicable requirements of Federal and State
     securities laws, including the filing and effectiveness of the Form S-8
     registration statement for the shares of Common Stock issuable under the
     Plan, and all applicable listing requirements of any securities exchange on
     which stock of the same class is then listed.

          (d) 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 to the failure to issue or sell such Shares as to
     which such requisite authority shall not have been obtained.

     3.6. NO EMPLOYMENT/SERVICE RIGHTS. Neither the action of the Company in
establishing the Plan, nor any action taken by the Administrator hereunder, nor
any provision of the Plan shall be construed so as to grant any individual the
right to remain in the employ or service of the Company (or any Parent or
Subsidiary) for any period of specific duration, and the Company (or any Parent

                                       11
<PAGE>
or Subsidiary retaining the services of such individual) may terminate such
individual's employment or service at any time and for any reason, with or
without cause.

     3.7. MISCELLANEOUS PROVISIONS.

          (a) ASSIGNMENT. The right to acquire Common Stock or other assets
     under the Plan may not be assigned, encumbered or otherwise transferred by
     any Optionee or other Option holder. The provisions of the Plan shall inure
     to the benefit of, and be binding upon, the Company and its successors or
     assigns, whether by Corporate Transaction or otherwise, and the Optionees,
     the legal representatives of their respective estates, their respective
     heirs or legatees and their permitted assignees.

          (b) CHOICE OF LAW. The provisions of the Plan relating to the exercise
     of options and the vesting of shares shall be governed by the laws of the
     State of Arizona, as such laws are applied to contracts entered into and
     performed in such State.

          (c) PLAN NOT EXCLUSIVE. This Plan is not intended to be the exclusive
     means by which the Company may issue options or warrants to acquire its
     shares of Common Stock, stock awards or issuances, or any other type of
     award or issuance. To the extent permitted by applicable law, any such
     other option, warrants, issuance, or awards may be issued by the Company
     other than pursuant to this Plan, without shareholder approval.

          EXECUTED as of the 3rd day of March, 2003.

                                        MICROCHIP TECHNOLOGY INCORPORATED,
                                        a Delaware corporation

                                        By /a/ Steve Sanghi
                                           -------------------------------------
                                           Steve Sanghi

                                           Its: Chairman of the Board, President
                                                and Chief Executive Officer

Attested by:

/s/ Mary Simmons
-------------------------------------
Mary K. Simmons
Secretary

                                       12

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