Document:

<PAGE>

[US BANK LETTERHEAD]

September 28, 2000

Jeff Killian                  ACKNOWLEDGMENT COPY
Treasurer
TriQuint Semiconductor, Inc.
2300 N.E. Brookwood Parkway
Hillsboro, OR 97124

Dear Jeff:

I am pleased to inform you that U.S. Bank National Association ("Bank") has
extended TriQuint Semiconductor, Inc.'s line of credit facility subject to the
following terms and conditions:

LINE OF CREDIT

BORROWER:                  TriQuint Semiconductor, Inc.

BORROWING LIMIT:           $10,000,000 [Ten Million U.S. Dollars]

                           Sublimit of $1,000,000 is available for the issuance
                           of standby and documentary letters of credit.

PURPOSE:                   General corporate purposes.

MATURITY DATE:             May 31, 2001.

INTEREST                   RATE: Borrower shall have the following Base Rate
                           options: (1) Bank's Prime Rate fully floating, or (2)
                           the London Interbank Offering Rates ("LIBOR"), plus
                           75.0 basis points. Interest shall be computed on the
                           basis of a 360-day year and the actual number of days
                           elapsed.

                  PRIME TERMS:
                                 A. Borrower is advised that U.S. Bank National
                                    Association's Prime Rate is the rate of
                                    interest which the Bank from time to time
                                    identifies as its Prime Rate, and is not
                                    necessarily, for example, the lowest rate of
                                    interest which the Bank collects from any
                                    borrower or group of borrowers.
                                 B. Prime borrowings are available on same day
                                    notice.

<PAGE>

TriQuint Semiconductor, Inc.
Committment Letter September 28, 2000

                  LIBOR TERMS:

                           The London Interbank Offering Rate ("LIBOR") is the
                           rate per annum determined by Bank as the average rate
                           offered to Bank for U.S. Dollar Deposits in the
                           Eurodollar market selected by Bank and adjusted for
                           reserves, if any.
                           A.       LIBOR borrowings are subject to a minimum
                                    advance of $500,000 and in increments of
                                    $100,000 thereafter.
                           B.       LIBOR borrowings are available for one, two,
                                    three or six month periods, not to exceed
                                    Maturity Date.
                           C.       LIBOR borrowings do not permit prepayment.
                           D.       LIBOR borrowings are subject to two business
                                    day prior notice by 12:00 noon.

                  LETTER OF CREDIT TERMS:
                           A.       The company may issue, under this facility,
                                    standby or documentary letters of credit
                                    ("LCs"), in the aggregate, amounts up to
                                    $1,000,000.
                           B.       Issuance fees shall be governed by standard
                                    Bank International Banking Fee Schedule for
                                    Letters of Credit when the amount is less
                                    than $250,000.
                           C.       For LCs in amounts equal to or greater than
                                    $250,000 the issuance fee shall be 1.5% of
                                    the amount issued.
                           D.       No LCs may be issued with an expiry date
                                    beyond May 31, 2001.

            FEES:    ANNUAL FEE:      12.5 basis points of the Borrowing Limit
                                      ($12,500) to be paid upon acceptance of
                                      this commitment.

                     COMMITMENT FEE:  12.5 basis points, annualized, paid
                                      quarterly in arrears on the unused portion
                                      of the line.

                  Upon request by Bank, Borrower agrees to reimburse Bank for
                  all reasonable out of pocket expenses for documentation,
                  including UCC filings and searches, and collateral evaluation
                  fees. Collateral evaluation fee to be capped at $2,000 per
                  annum.

REPAYMENT TERMS:  Promissory note with optional advance clause.  Interest is
                  payable monthly.  Principal is due at Maturity Date.

                  Repayment of each advance received by Borrower under the line
                  of credit is subject to the terms of the promissory note
                  evidencing that advance, as well as all terms and conditions
                  of this letter. In the event of any conflict between the two,
                  the terms and conditions of the promissory note shall control.

<PAGE>

TriQuint Semiconductor, Inc.
Committment Letter September 28, 2000

     COLLATERAL:  The revolving line of credit provides for a flexible
                  collateral position according to the following matrix. The
                  negative pledge and/or security agreements cover accounts,
                  chattel paper, documents, instruments, and inventory.

<TABLE>
<CAPTION>
                         -----------------------------  -------------------------------------------------
                         QUICK RATIO*                   COLLATERAL
                         -----------------------------  -------------------------------------------------
                      <S>                               <C>
                         > 1.50:1                       Unsecured with negative pledge.
                         -----------------------------  -------------------------------------------------
                         less than or equal to 1.50:1   Unsecured with negative pledge if not
                                                        borrowing.  If borrowing and Quick Ratio is
                                                        less than or equal to 1.50:1, then line is
                                                        secured.
                         -----------------------------  -------------------------------------------------
                         less than or equal to 1.15:1** Unsecured with negative pledge if not borrowing.
                                                        If borrowing and Quick Ratio is less than or
                                                        equal to 1.15:1, then line is secured and
                                                        margined at 80% of eligible A/R.
                         -----------------------------  -------------------------------------------------
</TABLE>

                           *  Quick Ratio is defined as [(Cash and Liquid
                              Investments, minus restricted funds, plus Net
                              Trade A/R) divided by (Current Liabilities plus
                              amounts outstanding on the $10,000,000 Line of
                              Credit)].

                           ** If Quick Ratio is less than or equal to 1.15:1,
                              then Bank may conduct a collateral exam at least
                              once per year, or more if necessary.

DOCUMENTATION:             Execution of notes, loan agreements, borrowing
                           resolutions, negative pledge agreement, and all other
                           documents as required by the Bank on forms prepared
                           by the Bank.
ADDITIONAL
CONDITIONS:                A.  The following covenants, with definitions
                               according to GAAP unless otherwise indicated,
                               shall be required and shall be measured quarterly
                               for compliance.  Failure to comply with any of
                               these covenants shall be deemed as an event of
                               default.

                               1.   Borrower's Current Assets to Current
                                    Liabilities Ratio shall not be less than
                                    1.75:1. Current Liabilities shall include
                                    any outstanding balance on the $10,000,000
                                    Line of Credit.

                               2.   Borrower's Total Liabilities to Net Worth
                                    Ratio shall not be greater than 1.50:1.

                               3.   Borrower shall maintain cash and liquid
                                    investments, including restricted funds, of
                                    at least $45,000,000. This condition will be
                                    waived if the May 1996 synthetic lease is
                                    paid in full.

<PAGE>

TriQuint Semiconductor, Inc.
Committment Letter September 28, 2000

                           B.       Borrower shall provide Bank with internally
                                    prepared quarterly financial statements, or
                                    form 10-Q, no later than 45 days following
                                    the end of each quarter.

                           C.       Borrower shall provide Bank with an audited
                                    annual financial statement or form 10-K no
                                    later than 90 days following the end of each
                                    fiscal period.

                           D.       If borrowing and the Borrower's Quick Ratio
                                    is less than or equal to 1.15:1, Borrower
                                    shall provide monthly accounts receivable
                                    and payable aging reports, and a Borrower's
                                    Certificate monthly.

                           E.       Borrower shall provide Bank with prior
                                    notification of multiple bank lines or other
                                    unsecured revolving credit facilities.

OTHER CONDITIONS:          CROSS-ACCELERATION: With regard to Borrower's
                           Synthetic Lease Financing Transaction, dated May
                           1996, Borrower agrees that if any default should
                           result in the declaration of amounts owing to become
                           due and payable prior to its stated maturity, then
                           said acceleration shall be deemed as an event of
                           default under this commitment letter.

ADVANCES:                  Advances are limited to the amount of the Borrowing
                           Limit when Borrower's Quick Ratio is greater than
                           1.15:1. When the Quick Ratio is less than or equal to
                           1.15:1, the advances shall be limited to 80 percent
                           of eligible A/R to 90 days after the date of invoice.

                           Advances under the Line of Credit are contingent upon
                           compliance with all of the above and all terms,
                           conditions, limitations, and other provisions
                           contained in any security agreement, mortgage, trust
                           deed, or other document executed by Borrower at the
                           request of the Bank.

                           Disbursements under this revolving line of credit
                           shall terminate on the earlier occurrence of the date
                           indicated above as the Maturity Date or the date on
                           which this Bank, in its sole discretion, determines
                           that there has been a material adverse change in the
                           financial condition or management of the Borrower, or
                           determines that there has been any non-compliance
                           with any term or condition stated here.

                           Non-compliance with any of the conditions and terms
                           of this letter of commitment will be considered as an
                           event of default, entitling the Bank to all the
                           default provisions as provided for in documents
                           evidencing this commitment.

<PAGE>

TriQuint Semiconductor, Inc.
Committment Letter September 28, 2000

If the above terms and conditions of this offer to extend credit are acceptable
to you, please sign and return the acknowledgment copy of this letter on or
before September 29, 2000.

Sincerely,

/s/ Chris Karlin

Chris Karlin
Vice President and Relationship Manager
Tel:     503-275-4940
Fax:    503-275-5795

BY OREGON STATUTE (ORS 41.580), THE FOLLOWING DISCLOSURE IS REQUIRED:

UNDER OREGON LAW, MOST AGREEMENTS, PROMISES AND COMMITMENTS MADE BY US (BANK)
AFTER OCTOBER 3, 1989 CONCERNING LOANS AND OTHER CREDIT EXTENSIONS WHICH ARE NOT
FOR PERSONAL, FAMILY OR HOUSEHOLD PURPOSES OR SECURED SOLELY BY THE BORROWER'S
RESIDENCE MUST BE IN WRITING, EXPRESS CONSIDERATION AND BE SIGNED BY US TO BE
ENFORCEABLE.

                                 ACKNOWLEDGMENT

The undersigned hereby acknowledges and accepts this offer to extend credit on
the terms and conditions stated above.

TRIQUINT SEMICONDUCTOR, INC.

By: /s/ Edson H. Whitehurst, Jr.
   ----------------------------------------
Title: Vice President, Finance and Administration, CFO
      -------------------------------------
Date: 9/29/00
     --------------------------------------

<PAGE>

                            ALTERNATIVE RATE OPTIONS
                                 PROMISSORY NOTE
                               (PRIME RATE, LIBOR)

Obligor #: #622 - 9058943647

$ 10,000,000.00                        Dated as of: September 20, 2000

TRIQUINT SEMICONDUCTOR, INC.                          ("Borrower")

U.S. BANK NATIONAL ASSOCIATION                                       ("Lender")

1.       TYPE OF CREDIT. This note is given to evidence Borrower's obligation to
         repay all sums which Lender may from time to time advance to Borrower
         ("Advances") under a:

  / /    single disbursement loan. Amounts loaned to Borrower hereunder will be
         disbursed in a single Advance in the amount shown in Section 2.

  /X/    revolving line of credit. No Advances shall be made which create a
         maximum amount outstanding at any one time which exceeds the maximum
         amount shown in Section 2. However, Advances hereunder may be borrowed,
         repaid and reborrowed, and the aggregate Advances loaned hereunder from
         time to time may exceed such maximum amount.

   / /   non-revolving line of credit. Each Advance made from time to time
         hereunder shall reduce the maximum amount available shown in Section 2.
         Advances loaned hereunder which are repaid may not be reborrowed.

2.       PRINCIPAL BALANCE. The unpaid principal balance of all Advances
outstanding under this note ("Principal Balance") at one time shall not exceed
$10,000,000.00.

3.       PROMISE TO PAY. For value received Borrower promises to pay to Lender
or order at CLSC-WEST P.O. Box 5308, Portland, OR 97228, the Principal Balance
of this note, with interest thereon at the rate(s) specified in Sections 4 and
11 below.

4.       INTEREST RATE. The interest rate on the Principal Balance outstanding
may vary from time to time pursuant to the provisions of this note. Subject to
the provisions of this note, Borrower shall have the option from time to time of
choosing to pay interest at the rate or rates and for the applicable periods of
time based on the rate options provided herein; PROVIDED, however, that once
Borrower notifies Lender of the rate option chosen in accordance with the
provisions of this note, such notice shall be irrevocable. The rate options are
the Prime Borrowing Rate and the LIBOR Borrowing Rate, each as defined herein.

(a)      DEFINITIONS.  The following terms shall have the following meanings:

         "Business Day" means any day other than a Saturday, Sunday, or other
day that commercial banks in Portland, Oregon, Minneapolis, Minnesota, or New
York City are authorized or required by law to close; provided, however that
when used in connection with a LIBOR Rate, LIBOR Amount or LIBOR Interest Period
such term shall also exclude any day on which dealings in U.S. dollar deposits
are not carried on in the London interbank market.

         "Dow Jones Page 3750" means the display designated as such on the Dow
Jones Markets Service (formerly known as Telerate) (or such other page as may
replace page 3750 on that service for the purpose of displaying London interbank
offered rates of major banks for United States Dollar deposits).

         "LIBOR Amount" means each principal amount for which Borrower chooses
to have the LIBOR Borrowing Rate apply for any specified LIBOR Interest Period.

         "LIBOR Interest Period" means as to any LIBOR Amount, a period of 1, 2,
3 or 6 months commencing on the date the LIBOR Borrowing Rate becomes applicable
thereto; PROVIDED, however, that: (i) the first day of each LIBOR Interest
Period must be a Business Day; (ii) no LIBOR Interest Period shall commence on
or after April 30, 2001; (iii) no LIBOR Interest Period shall be selected which
would extend beyond May 31, 2001; (iv) no LIBOR Interest Period shall extend
beyond the date of any principal payment required under Section 6 of this note,
unless the sum of the Prime Rate Amount, plus LIBOR Amounts with LIBOR Interest
Periods ending on or before the scheduled date of such principal payment, plus
principal amounts remaining unborrowed under a line of credit, equals or exceeds
the amount of such principal payment; (v) any LIBOR Interest Period which would
otherwise expire on a day which is not a Business Day, shall be extended to the
next succeeding Business Day, unless the result of such extension would be to
extend such LIBOR Interest Period into another calendar month, in which event
the LIBOR Interest Period shall end on the immediately preceding Business Day;
and (vi) any LIBOR Interest Period that begins on the last Business Day of a
calendar month (or on a day for which there is no numerically corresponding day
in the calendar month at the end of such LIBOR Interest Period) shall end on the
last Business Day of a calendar month.

         "LIBOR Rate" means, for any LIBOR Interest Period, the average offered
rate for deposits in United States Dollars (rounded upwards, if necessary, to
the nearest 1/16 of 1%) for delivery of such deposits on the first day of such
LIBOR Interest Period, for the number of months therein, which appears on Dow
Jones Page 3750 as of 11:00 a.m., London time (or such other time as of which
such rate appears) on the day that is two Business Days preceding the first day
of such LIBOR Interest Period; or the rate for such deposits determined by
Lender at such time based on such other published service of general application
as shall be selected by Lender for such purpose; provided, that in lieu of
determining the rate in the foregoing manner, Lender may determine the rate
based on the rates offered to Lender for deposits in United States Dollars
(rounded upwards, if necessary, to the nearest 1/16 of 1%) in the interbank
eurodollar market at such time for delivery on the first day of such LIBOR
Interest Period for the number of months therein; and provided, further, that in
any case the LIBOR Rate shall be adjusted to take into account the maximum
reserves required to be maintained for Eurocurrency liabilities by banks during
each such LIBOR Interest Period as specified in Regulation D of the Board of
Governors of the Federal Reserve System or any successor regulation.

         "Prime Rate" means the rate of interest which Lender from time to time
establishes as its prime or reference rate and is not, for example, the lowest
rate of interest which Lender collects from any borrower or class of borrowers.
When the Prime Rate is applicable under Section 4(b) or 11(b), the interest rate
hereunder shall be adjusted without notice effective on the day the Prime Rate
changes, but in no event shall the rate of interest be higher than allowed by
law.

         "Prime Rate Amount" means any portion of the Principal Balance bearing
interest at the Prime Borrowing Rate.

(b)      THE PRIME BORROWING RATE.

         (i)      The Prime Borrowing Rate is a variable per annum rate equal to
the Prime Rate plus 0.00%.

         (ii)     Whenever Borrower desires to use the Prime Borrowing Rate
option, Borrower shall give Lender notice orally or in writing in accordance
with Section 15 of this note, which notice shall specify the requested effective
date (which must be a Business Day) and principal amount of the Advance or
increase in the Prime Rate Amount, and whether Borrower is requesting a new
Advance under a line of credit or conversion of a LIBOR Amount to the Prime
Borrowing Rate.

         (iii)    Subject to Section 11 of this note, interest shall accrue on
the unpaid Principal Balance at the Prime Borrowing Rate unless and except to
the extent that the LIBOR Borrowing Rate is in effect.

(c)      THE LIBOR BORROWING RATE.

         (i)      The LIBOR Borrowing Rate is the LIBOR Rate plus .75% per
annum.

         (ii)     Borrower may obtain LIBOR Borrowing Rate quotes from Lender
before 10:00 a.m. (Portland, Oregon time) on any Business Day. Borrower may
request an Advance, conversion of any portion of the Prime Rate Amount to a
LIBOR Amount or a new LIBOR Interest Period for an existing LIBOR Amount, at
such rate only by giving Lender notice in accordance with Section 4 (c) (iii)
before 10:00 a.m. (Portland, Oregon time) on such day.

Libor-or (Oregon) (6/99)LHH                                         Page 1 of 4

<PAGE>

         (iii)    Whenever Borrower desires to use the LIBOR Borrowing Rate
option, Borrower shall give Lender irrevocable notice (either in writing or
orally and promptly confirmed in writing) no later than 10:00 a.m. (Portland,
Oregon time) two (2) Business Days prior to the desired effective date of such
rate. Any oral notice shall be given by, and any written notice or confirmation
of an oral notice shall be signed by, the person(s) authorized in Section 15 of
this note, and shall specify the requested effective date of the rate, LIBOR
Interest Period and LIBOR Amount, and whether Borrower is requesting a new
Advance at the LIBOR Borrowing Rate under a line of credit, conversion of all or
any portion of the Prime Rate Amount to a LIBOR Amount, or a new LIBOR Interest
Period for an outstanding LIBOR Amount. Notwithstanding any other term of this
note, Borrower may elect the LIBOR Borrowing Rate in the minimum principal
amount of $500,000.00 and in multiples of $100,000.00 above such amount;
PROVIDED, however, that no more than N/A separate LIBOR Interest Periods may be
in effect at any one time.

         (iv)     If at any time the LIBOR Rate is unascertainable or
unavailable to Lender or if LIBOR Rate loans become unlawful, the option to
select the LIBOR Borrowing Rate shall terminate immediately. If the LIBOR
Borrowing Rate is then in effect, (A) it shall terminate automatically with
respect to all LIBOR Amounts (i) on the last day of each then applicable LIBOR
Interest Period, if Lender may lawfully continue to maintain such loans, or (ii)
immediately if Lender may not lawfully continue to maintain such loans through
such day, and (B) subject to Section 11, the Prime Borrowing Rate automatically
shall become effective as to such amounts upon such termination.

         (v)      If at any time after the date hereof (A) any revision in or
adoption of any applicable law, rule, or regulation or in the interpretation or
administration thereof (i) shall subject Lender or its Eurodollar lending office
to any tax, duty, or other charge, or change the basis of taxation of payments
to Lender with respect to any loans bearing interest based on the LIBOR Rate, or
(ii) shall impose or modify any reserve, insurance, special deposit, or similar
requirements against assets of, deposits with or for the account of, or credit
extended by Lender or its Eurodollar lending office, or impose on Lender or its
Eurodollar lending office any other condition affecting any such loans, and (B)
the result of any of the foregoing is (i) to increase the cost to Lender of
making or maintaining any such loans or (ii) to reduce the amount of any sum
receivable under this note by Lender or its Eurodollar lending office, Borrower
shall pay Lender within 15 days after demand by Lender such additional amount as
will compensate Lender for such increased cost or reduction. The determination
hereunder by Lender of such additional amount shall be conclusive in the absence
of manifest error. If Lender demands compensation under this Section 4(c)(v),
Borrower may upon three (3) Business Days' notice to Lender pay the accrued
interest on all LIBOR Amounts, together with any additional amounts payable
under Section 4(c)(vi). Subject to Section 11, upon Borrower's paying such
accrued interest and additional costs, the Prime Borrowing Rate immediately
shall be effective with respect to the unpaid principal balance of such LIBOR
Amounts.

         (vi)     Borrower will indemnify Lender upon demand against any loss or
expense which Lender may sustain or incur (including, without limitation, any
loss or expense sustained or incurred in obtaining, liquidating or employing
deposits or other funds acquired to effect, fund or maintain any portion of the
loan or any Advance) as a consequence of (A) any failure of Borrower to make any
payment when due of any amount due hereunder, (B) any failure of Borrower to
borrow, if permitted by the terms of this note, continue or convert any portion
of the Prime Rate Amount to a LIBOR Amount, on a date specified therefor in a
notice thereof, or (C) any payment, voluntary or mandatory prepayment or payment
on default or conversion of any LIBOR Amount to the Prime Borrowing Rate, on a
date other than the last day of the applicable LIBOR Interest Period.
Determinations by Lender of the amount required to indemnify Lender shall be
conclusive in the absence of manifest error.

         (vii)    Notwithstanding any provision of this note to the contrary,
Lender shall be entitled to fund and maintain its funding of all or any part of
the loan evidenced by this note in any manner it elects; it being understood,
however, that with respect to any LIBOR Amount, all determinations hereunder
shall be made as if Lender had actually funded and maintained each LIBOR Amount
during the LIBOR Interest Period applicable to it through the purchase of
deposits having a term corresponding to such LIBOR Interest Period and bearing
an interest rate equal to the LIBOR Rate for such LIBOR Interest Period (whether
or not Lender shall have granted any participations in such LIBOR Amounts).

         (viii)   Notwithstanding any other term of this note, Borrower may not
select the LIBOR Borrowing Rate if an event of default hereunder has occurred
and is continuing.

         (ix)     Nothing contained in this note, including without limitation
the determination of any LIBOR Interest Period or Lender's quotation of any
LIBOR Borrowing Rate, shall be construed to prejudice Lender's right, if any, to
decline to make any requested Advance or to require payment on demand.

5.       COMPUTATION OF INTEREST. All interest under Section 4 and Section 11
will be computed at the applicable rate based on a 360-day year and applied to
the actual number of days elapsed.

6.       PAYMENT SCHEDULE.

(a)      PRINCIPAL.  Principal shall be paid:

         / /      on demand.
         / /      on demand, or if no demand, on _________________.
         /X/      on May 31, 2001.
         / /      subject to Section 8, in installments of
                  / /             _____________________________ each, plus
                           accrued interest, beginning on _______ and on the
                           same day of each ___________________________________
                           thereafter until   ___________ when the entire
                           Principal Balance plus interest thereon shall be due
                           and payable.
                  / /             _____________________________ each, including
                           accrued interest, beginning on _______ and on the
                           same day of each ___________________________________
                           thereafter until   ___________ when the entire
                           Principal Balance plus interest thereon shall be due
                           and payable.
         / /               ______________________________________.

(b)      INTEREST.

         (i)      Interest on the Prime Rate Amount shall be paid:

                  /X/      on the 31st day of October, 2000 and on the same day
                           of each month thereafter prior to maturity and at
                           maturity.
                  / /      at maturity.
                  / /      at the time each principal installment is due and at
                           maturity.
                  / /           ___________________________________.
                                ___________________________________.

         (ii)     Interest on all LIBOR Amounts shall be paid:

                  /X/      on the last day of the applicable LIBOR Interest
                           Period, and if such LIBOR Interest Period is longer
                           than three months, on the last day of each three
                           month period occurring during such LIBOR Interest
                           Period, and at maturity.
                  / /      on the _____ day of   _________ and on the same day
                           of each ___________ thereafter prior to maturity and
                           at maturity.
                  / /      at maturity.
                  / /      at the time each principal installment is due and at
                           maturity.
                  / /           ___________________________________.

7.       PREPAYMENT.

(a)      Prepayments of all or any part of the Prime Rate Amount may be made at
         any time without penalty.

(b)      Except as otherwise specifically set forth herein, Borrower may not
         prepay all or any part of any LIBOR Amount or terminate any LIBOR
         Borrowing Rate, except on the last day of the applicable LIBOR Interest
         Period.

(c)      Principal prepayments will not postpone the date of or change the
         amount of any regularly scheduled payment. At the time of any principal
         prepayment, all accrued interest, fees, costs and expenses shall also
         be paid.

8.       CHANGE IN PAYMENT AMOUNT. Each time the interest rate on this note
changes the holder of this note may, from time to time, in holder's sole
discretion, increase or decrease the amount of each of the installments
remaining unpaid at the time of such change in rate to an amount holder in its

Libor-or (Oregon) (6/99)LHH                                      Page of 2 of 4

<PAGE>

sole discretion deems necessary to continue amortizing the Principal Balance at
the same rate established by the installment amounts specified in Section 6(a),
whether or not a "balloon" payment may also be due upon maturity of this note.
Holder shall notify the undersigned of each such change in writing. Whether or
not the installment amount is increased under this Section 8, Borrower
understands that, as a result of increases in the rate of interest the final
payment due, whether or not a "balloon" payment, shall include the entire
Principal Balance and interest thereon then outstanding, and may be
substantially more than the installment specified in Section 6.

9.       ALTERNATE PAYMENT DATE. Notwithstanding any other term of this note, if
in any month there is no day on which a scheduled payment would otherwise be due
(e.g. February 31), such payment shall be paid on the last banking day of that
month.

10.      PAYMENT BY AUTOMATIC DEBIT.

/X/      Borrower hereby authorizes Lender to automatically deduct the amount
of all principal and interest payments from account number 1536 000 83643
with Lender. If there are insufficient funds in the account to pay the
automatic deduction in full, Lender may allow the account to become
overdrawn, or Lender may reverse the automatic deduction. Borrower will pay
all the fees on the account which result from the automatic deductions,
including any overdraft and non-sufficient funds charges. If for any reason
Lender does not charge the account for a payment, or if an automatic payment
is reversed, the payment is still due according to this note. If the account
is a Money Market Account, the number of withdrawals from that account is
limited as set out in the account agreement. Lender may cancel the automatic
deduction at any time in its discretion.

Provided, however, if no account number is entered above, Borrower does not want
to make payments by automatic debit.

11.      DEFAULT.

(a)      Without prejudice to any right of Lender to require payment on demand
or to decline to make any requested Advance, each of the following shall be an
event of default: (i) Borrower fails to make any payment when due. (ii) Borrower
fails to perform or comply with any term, covenant or obligation in this note or
any agreement related to this note, or materially in any agreement or loan
Borrower has with Lender or any affiliate of Lender. (iii) Borrower materially
defaults under any loan, extension of credit, security agreement, in favor of
any other creditor that may materially affect Borrower's ability to repay this
note or perform Borrower's obligations under this note or any related documents.
(iv) Any representation or statement made or furnished to Lender by Borrower or
on Borrower's behalf is false or misleading in any material respect either now
or at the time made or furnished. (v) Borrower becomes insolvent, liquidates or
dissolves, a receiver is appointed for any part of Borrower's property, Borrower
makes an assignment for the benefit of creditors, or any proceeding is commenced
either by Borrower or against Borrower under any bankruptcy or insolvency laws.
(vi) Any creditor tries to take any of Borrower's property on or in which Lender
has a lien or security interest. This includes a garnishment of any of
Borrower's accounts with Lender. (vii) Any of the events described in this
default section occurs with respect to any general partner in Borrower or any
guarantor of this note, or any guaranty of Borrower's indebtedness to Lender
ceases to be, or is asserted not to be, in full force and effect. (viii) There
is any material adverse change in the financial condition or management of
Borrower or Lender in good faith deems itself insecure with respect to the
payment or performance of Borrower's obligations to Lender. If this note is
payable on demand, the inclusion of specific events of default shall not
prejudice Lender's right to require payment on demand or to decline to make any
requested Advance.

(b)      Without prejudice to any right of Lender to require payment on demand,
upon the occurrence of an event of default, Lender may declare the entire unpaid
Principal Balance on this note and all accrued unpaid interest immediately due
and payable, without notice; provided, however, that if any proceeding under any
bankruptcy or insolvency law is commenced by or against Borrower, the
availability of Advances shall be immediately terminated without notice and the
entire Principal Balance and all accrued interest shall, without notice, become
immediately due and payable. Upon default, including failure to pay upon final
maturity, Lender, at its option, may also, if permitted under applicable law,
increase the interest rate on this note to a rate equal to the Prime Borrowing
Rate plus 5%. The interest rate will not exceed the maximum rate permitted by
applicable law. In addition, if any payment of principal or interest is 19 or
more days past due, Borrower will be charged a late charge of 5% of the
delinquent payment.

12.      EVIDENCE OF PRINCIPAL BALANCE; PAYMENT ON DEMAND. Holder's records
shall, at any time, be conclusive evidence of the unpaid Principal Balance and
interest owing on this note. Notwithstanding any other provisions of this note,
in the event holder makes Advances hereunder which result in an unpaid Principal
Balance on this note which at any time exceeds the maximum amount specified in
Section 2, Borrower agrees that all such Advances, with interest, shall be
payable on demand.

13.      LINE OF CREDIT PROVISIONS. If the type of credit indicated in Section 1
is a revolving line of credit or a non-revolving line of credit, Borrower agrees
that Lender is under no obligation and has not committed to make any Advances
hereunder. Each Advance hereunder shall be made at the sole option of Lender.

14.      DEMAND NOTE. If this note is payable on demand, Borrower acknowledges
and agrees that (a) Lender is entitled to demand Borrower's immediate payment in
full of all amounts owing hereunder and (b) neither anything to the contrary
contained herein or in any other loan documents (including but not limited to,
provisions relating to defaults, rights of cure, default rate of interest,
installment payments, late charges, periodic review of Borrower's financial
condition, and covenants) nor any act of Lender pursuant to any such provisions
shall limit or impair Lender's right or ability to require Borrower's payment in
full of all amounts owing hereunder immediately upon Lender's demand.

15.      REQUESTS FOR ADVANCES.

(a)      Any Advance may be made or interest rate option selected upon the
request of Borrower (if an individual), any of the undersigned (if Borrower
consists of more than one individual), any person or persons authorized in
subsection (b) of this Section 15, and any person or persons otherwise
authorized to execute and deliver promissory notes to Lender on behalf of
Borrower.

(b)      Borrower hereby authorizes any one of the following individuals to
request Advances and to select interest rate options: Steven J. Sharp, Edson
H. Whitehurst, Jr., Stephanie J. Welty, Jeff A. Killian unless Lender is
otherwise instructed in writing.

(c)      All Advances shall be disbursed by deposit directly to Borrower's
account number 1536 000 83643 with Lender, or by cashier's check issued to
Borrower.

(d)      Borrower agrees that Lender shall have no obligation to verify the
identity of any person making any request pursuant to this Section 15, and
Borrower assumes all risks of the validity and authorization of such requests.
In consideration of Lender agreeing, at its sole discretion, to make Advances
upon such requests, Borrower promises to pay holder, in accordance with the
provisions of this note, the Principal Balance together with interest thereon
and other sums due hereunder, although any Advances may have been requested by a
person or persons not authorized to do so.

16.      PERIODIC REVIEW. Lender will review Borrower's credit accommodations
periodically. At the time of the review, Borrower will furnish Lender with any
additional information regarding Borrower's financial condition and business
operations that Lender reasonably requests. This information may include but is
not limited to, financial statements, tax returns, lists of assets and
liabilities, agings of receivables and payables and inventory schedules. If upon
review, Lender, in its sole discretion, determines that there has been a
material adverse change in Borrower's financial condition, Borrower will be in
default. Upon default, Lender shall have all rights specified herein.

17.      NOTICES. Any notice hereunder may be given by ordinary mail, postage
paid and addressed to Borrower at the last known address of Borrower as shown on
holder's records. If Borrower consists of more than one person, notification of
any of said persons shall be complete notification of all.

18.      ATTORNEY FEES. Whether or not litigation or arbitration is commenced,
Borrower promises to pay all reasonable costs of collecting overdue amounts.
Without limiting the foregoing, in the event that holder consults an attorney
regarding the enforcement of any of its rights under this note or any document
securing the same, or if this note is placed in the hands of an attorney for
collection or if suit or litigation is brought to enforce this note or any
document securing the same, Borrower promises to pay all costs thereof including
such additional sums as the court or arbitrator(s) may adjudge reasonable as
attorney fees, including without limitation, costs and attorney fees incurred in
any appellate court, in any proceeding under the bankruptcy code, or in any
receivership and post-judgment attorney fees incurred in enforcing any judgment.

19.      WAIVERS; CONSENT. Each party hereto, whether maker, co-maker, guarantor
or otherwise, waives diligence, demand, notice of non-payment, protest and
notice of protest and waives all defenses based on suretyship or impairment of
collateral. Without notice to Borrower and without diminishing or affecting
Lender's rights or Borrower's obligations hereunder, Lender may deal in any
manner with any person who at

Libor-or (Oregon) (6/99)LHH                                      Page of 3 of 4

<PAGE>

any time is liable for, or provides any real or personal property collateral
for, any indebtedness of Borrower to Lender, including the indebtedness
evidenced by this note. Without limiting the foregoing, Lender may, in its sole
discretion: (a) make secured or unsecured loans to Borrower and agree to any
number of waivers, modifications, extensions and renewals of any length of such
loans, including the loan evidenced by this note; (b) impair, release (with or
without substitution of new collateral), fail to perfect a security interest in,
fail to preserve the value of, fail to dispose of in accordance with applicable
law, any collateral provided by any person; (c) sue, fail to sue, agree not to
sue, release, and settle or compromise with, any person.

20.      JOINT AND SEVERAL LIABILITY. All undertakings of the undersigned
Borrowers are joint and several and are binding upon any marital community of
which any of the undersigned are members. Holder's rights and remedies under
this note shall be cumulative.

21.      SEVERABILITY. If any term or provision of this note is declared by a
court of competent jurisdiction to be illegal, invalid or unenforceable for any
reason whatsoever, such illegality, invalidity or unenforceability shall not
affect the balance of the terms and provisions hereof, which terms and
provisions shall remain binding and enforceable, and this note shall be
construed as if such illegal, invalid or unenforceable provision had not been
contained herein.

22.      ARBITRATION.

(a)      Either Lender or Borrower may require that all disputes, claims,
counterclaims and defenses, including those based on or arising from any alleged
tort ("Claims") relating in any way to this note or any transaction of which
this note is a part (the "Loan"), be settled by binding arbitration in
accordance with the Commercial Arbitration Rules of the American Arbitration
Association and Title 9 of the U.S. Code. All Claims will be subject to the
statutes of limitation applicable if they were litigated. This provision is void
if the Loan, at the time of the proposed submission to arbitration, is secured
by real property located outside of Oregon or Washington, or if the effect of
the arbitration procedure (as opposed to any Claims of Borrower) would be to
materially impair Lender's ability to realize on any collateral securing the
Loan.

(b)      If arbitration occurs and each party's Claim is less than $100,000, one
neutral arbitrator will decide all issues; if any party's Claim is $100,000 or
more, three neutral arbitrators will decide all issues. All arbitrators will be
active Oregon State Bar members in good standing. All arbitration hearings will
be held in Portland, Oregon. In addition to all other powers, the arbitrator(s)
shall have the exclusive right to determine all issues of arbitrability.
Judgment on any arbitration award may be entered in any court with jurisdiction.

(c)      If either party institutes any judicial proceeding relating to the
Loan, such action shall not be a waiver of the right to submit any Claim to
arbitration. In addition, each has the right before, during and after any
arbitration to exercise any number of the following remedies, in any order or
concurrently: (i) setoff; (ii) self-help repossession; (iii) judicial or
non-judicial foreclosure against real or personal property collateral; and (iv)
provisional remedies, including injunction, appointment of receiver, attachment,
claim and delivery and replevin.

23.      GOVERNING LAW. This note shall be governed by and construed and
enforced in accordance with the laws of the State of Oregon without regard to
conflicts of law principles; PROVIDED, however, that to the extent that Lender
has greater rights or remedies under Federal law, this provision shall not be
deemed to deprive Lender of such rights and remedies as may be available under
Federal law.

24.      DISCLOSURE.

         UNDER OREGON LAW, MOST AGREEMENTS, PROMISES AND COMMITMENTS MADE BY
LENDERS AFTER OCTOBER 3, 1989, CONCERNING LOANS AND OTHER CREDIT EXTENSIONS
WHICH ARE NOT FOR PERSONAL, FAMILY OR HOUSEHOLD PURPOSES OR SECURED SOLELY BY
THE BORROWER'S RESIDENCE MUST BE IN WRITING, EXPRESS CONSIDERATION AND BE SIGNED
BY THE LENDER TO BE ENFORCEABLE.

EACH OF THE UNDERSIGNED HEREBY ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THIS
DOCUMENT.

TRIQUINT SEMICONDUCTOR, INC.
---------------------------------------------------------
Borrower Name (Corporation, Partnership  or other Entity)

By: /s/ Edson H. Whitehurst, Jr.       V.P., CFO
---------------------------------------------------------
   Authorized officer,                 Title

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

For valuable consideration, Lender agrees to the terms of the arbitration
provision set forth in this note.

                                      U.S. BANK NATIONAL ASSOCIATION

                                      By: /s/ Chris Karlin
                                         --------------------------------------
                                      Title: Vice President
                                            -----------------------------------
                                      Date: 09/28/00
                                           ------------------------------------

Libor-or (Oregon (6/99)LHH                                        Page 4 of 4<PAGE>

                         CALIFORNIA INDEPENDENT BANCORP
                      2000 EQUITY INCENTIVE PLAN - Revised

                     As Adopted by the Board March 21, 2000
                   As Adopted by the Shareholders May 17, 2000
                      As Revised by the Board July 18, 2000

      1. PURPOSE. The purpose of this Plan is to provide incentives to attract,
retain and motivate eligible persons whose present and potential contributions
are important to the success of the Company by offering them an opportunity to
participate in the Company's future performance through awards of Options,
Restricted Stock and Stock Bonuses. Capitalized terms not defined in the text
are defined in Section 2.

      2. DEFINITIONS. As used in this Plan, the following terms will have the
following meanings:

            2.1. Award. "Award" means any award under this Plan, including any
Option, Restricted Stock or Stock Bonus.

            2.2. Award Agreement. "Award Agreement" means, with respect to each
Award, the signed written agreement between the Company and the Participant
setting forth the terms and conditions of the Award.

            2.3. Board. "Board" means the Board of Directors of the Company.

            2.4. Code. "Code" means the Internal Revenue Code of 1986, as
amended.

            2.5. Committee. "Committee" means the committee appointed by the
Board to administer this Plan, or if no such committee is appointed, the Board.

            2.6. Company. "Company" means California Independent Bancorp and its
subsidiaries or any successor corporation.

            2.7 Disability. "Disability" means a disability, whether permanent
and total within the meaning of Section 22(e)(3) of the Code, or partial or
temporary.

            2.8. Exchange Act. "Exchange Act" means the Securities Exchange Act
of 1934, as amended.

            2.9. Exercise Price. "Exercise Price" means the price at which a
holder of an Option may purchase the Shares upon exercise of the Option.

            2.10. Fair Market Value. "Fair Market Value" means, as of any date,
the value of a share of the Company's Common Stock, determined as follows:

                                       27
<PAGE>

                  (a) if such Common Stock is quoted on the Nasdaq National
Market, its closing price on the Nasdaq National Market on the date of
determination as reported in The Wall Street Journal;

                  (b) if such Common Stock is publicly traded and is listed on a
national securities exchange, its closing price on the date of determination on
the principal national securities exchange on which the Common Stock is listed
or admitted to trading as reported in The Wall Street Journal. If the closing
price is not reported in The Wall Street Journal, the closing price for the
applicable composite-transactions report for such date shall be applied;

                  (c) if such Common Stock is publicly traded but is not quoted
on the Nasdaq National Market nor listed or admitted to trading on a national
securities exchange, the average of the closing bid and asked prices on the date
of determination as reported in The Wall Street Journal. In the event that the
closing bid and asked prices are not reported in The Wall Street Journal, the
closing bid and asked prices as reported on the applicable principal automated
inter-dealer quotation system shall be utilized, or if not quoted on any such
system, the last reported bid and asked prices as published in the "Pink Sheets"
by the National Quotation Bureau, shall be deemed appropriate; or

                  (d) if none of the foregoing is applicable, by the Committee
in good faith using earnings history, book value and company prospects in light
of market conditions generally.

            2.11 Incentive Stock Options. "Incentive Stock Options" ("ISOs") as
defined within the meaning of Section 422 of the Code.

            2.12. Insider. "Insider" means an officer or director of the Company
or any other person whose transactions in the Company's Common Stock are subject
to Section 16 of the Exchange Act.

            2.13. Outside Director. "Outside Director" shall have the meaning as
the term is used in Section 162(m) of the Code and defined in Treasury
Regulation 1.162-27, as amended from time to time.

            2.14. Option. "Option" means an award of an option to purchase
Shares pursuant to Section 5.

            2.15. Participant. "Participant" means a person who receives an
Award under this Plan.

            2.16. Plan. "Plan" means this California Independent Bancorp 2000
Equity Incentive Plan, as amended from time to time.

                                       28
<PAGE>

            2.17. Restricted Stock Award. "Restricted Stock Award" means an
award of Shares pursuant to Section 7.

            2.18. SEC. "SEC" means the Securities and Exchange Commission.

            2.19. Securities Act. "Securities Act" means the Securities Act of
1933, as amended.

            2.20. Shares. "Shares" means shares of the Company's Common Stock
reserved for issuance under this Plan, as adjusted pursuant to Sections 3 and
19, and any successor security.

            2.21. Stock Bonus. "Stock Bonus" means an award of Shares, or cash
in lieu of Shares, pursuant to Section 8.

            2.22 Ten Percent Shareholder. "Ten Percent Shareholder" means any
shareholder who owns or controls 10% of the total combined voting power or value
of all classes of stock of the Company or a subsidiary corporation. The
attribution rules of Section 424(d) of the Code shall apply in the determination
of ownership of stock for these purposes.

            2.23. Termination. "Termination" or "Terminated" means, for purposes
of this Plan with respect to a Participant, that the Participant has for any
reason ceased to provide services as an employee, officer, director, consultant,
independent contractor or advisor of the Company. An employee will not be deemed
to have ceased to provide services in the case of (i) sick leave, (ii) military
leave, or (iii) any other leave of absence approved by the Committee; provided,
that such leave is for a period of not more than ninety (90) days, unless
reemployment upon the expiration of such leave is guaranteed by contract or
statute or unless provided otherwise pursuant to formal policy adopted from time
to time by the Company and issued and promulgated to employees in writing. In
the case of any employee on an approved leave of absence, the Committee may make
such provisions respecting suspension of vesting of the Award while on leave
from the employ of the Company as it may deem appropriate, except that in no
event may an Option be exercised after the expiration of the term set forth in
the Option agreement. The Committee will have sole discretion to determine
whether a Participant has ceased to provide services and the effective date on
which the Participant ceased to provide services (the "Termination Date").

            2.24. Unvested Shares. "Unvested Shares" means "Unvested Shares" as
defined in the Award Agreement.

            2.25. Vested Shares. "Vested Shares" means "Vested Shares" as
defined in the Award Agreement.

                                       29
<PAGE>

3. SHARES SUBJECT TO THE PLAN.

            3.1. Number of Shares Available. Subject to Sections 3.2 and 19, the
total number of Shares reserved and available for grant and issuance pursuant to
this Plan will be one hundred thousand (100,000) Shares. Subject to Sections 3.2
and 19, Shares that are subject to (i) issuance upon exercise of an Option but
cease to be subject to such Option for any reason other than exercise of such
Option; (ii) an Award granted hereunder but are forfeited or are repurchased by
the Company at the original issue price; or (iii) an Award that otherwise
terminates without Shares being issued, will again be available for grant and
issuance in connection with future Awards under this Plan. At all times, the
Company shall reserve and keep available a sufficient number of Shares as shall
be required to satisfy the requirements of all outstanding Options granted under
this Plan and all other outstanding but unvested Awards granted under this Plan.

            3.2. Adjustment of Shares. In the event of a Company stock split,
reverse stock split, stock dividend, recapitalization, combination,
reclassification, subdivision, or similar change in the capital structure of the
Company without consideration, then each of (i) the number of Shares reserved
for issuance under this Plan, (ii) the Exercise Prices of and number of Shares
subject to outstanding Options, and (iii) the number of Shares subject to other
outstanding Awards, will be proportionately adjusted, subject to any required
action by the Board or the shareholders of the Company and compliance with
applicable securities laws. Fractions of a Share will not be issued but will
either be replaced by a cash payment equal to the Fair Market Value of such
fraction or will be rounded up to the nearest whole Share, as determined by the
Committee.

      4. ELIGIBILITY. ISOs may be granted only to employees (including officers
and directors who are also employees) of the Company. All other Awards may be
granted to employees, officers, directors, consultants, independent contractors
and advisors of the Company; provided, such consultants, contractors and
advisors render bona fide services not in connection with the offer and sale of
securities in a capital-raising transaction.

      5. ADMINISTRATION.

            5.1. Committee Authority. This Plan will be administered by the
Committee or by the Board acting as the Committee. Subject to the general
purposes, terms and conditions of this Plan, and to the direction of the Board,
the Committee will have full power to implement and carry out this Plan. Without
limitation, the Committee will have the authority to:

                  (a) construe and interpret this Plan, any Award Agreement and
any other agreement or document executed pursuant to this Plan;

                  (b) prescribe, amend and rescind rules and regulations
relating to this Plan;

                  (c) select persons to receive Awards;

                                       30
<PAGE>

                  (d) determine the form and terms of Awards;

                  (e) determine the number of Shares or other consideration
subject to Awards;

                  (f) determine whether Awards will be granted separately, in
combination with, in tandem with, in replacement of, or as alternatives to,
other Awards under this Plan or any other incentive or compensation plan of the
Company;

                  (g) grant waivers of Plan or Award conditions;

                  (h) determine the vesting, exercisability and payment of
Awards;

                  (i) correct any defect, supply any omission or reconcile any
inconsistency in this Plan, any Award or any Award Agreement;

                  (j) determine whether an Award has been earned; and

                  (k) make all other determinations necessary or advisable for
the administration of this Plan.

            5.2. Committee Discretion. Any determination made by the Committee
with respect to any Award will be made in its sole discretion at the time of
grant of the Award or, unless in contravention of any express term of this Plan
or Award, at any later time, and such determination will be final and binding on
the Company and on all persons having an interest in any Award under this Plan.
The Committee may delegate to one or more officers of the Company the authority
to grant an Award under this Plan to Participants who are not Insiders of the
Company.

            5.3. Committee Members. If two or more members of the Board are
Outside Directors, the Committee will be comprised of at least two (2) members
of the Board who are Outside Directors and satisfy the requirements under the
Exchange Act for administering this Plan.

      6. OPTIONS. The Committee may grant Options to eligible persons and will
determine (i) whether such Options will be ISOs or Nonqualified Stock Options
("NQSO"), (ii) the number of Shares subject to the Options, (iii) the Exercise
Price of the Options, (iv) the period during which the Options may be exercised,
and (v) all other terms and conditions of the Options, subject to the following:

            6.1. Form of Option Grant. Each Option granted under this Plan will
be evidenced by an Award Agreement which will expressly identify the Option as
an ISO or an

                                       31
<PAGE>

NQSO ("Stock Option Agreement"), and will be in such form and contain such
provisions (which need not be the same for each Participant) as the Committee
may from time to time approve, and which will comply with and be subject to the
terms and conditions of this Plan.

            6.2. Date of Grant. The date of grant of an Option will be the date
on which the Committee makes the determination to grant such Option, unless
otherwise specified by the Committee. The Stock Option Agreement and a copy of
this Plan will be delivered to the Participant within a reasonable time after
the granting of the Option.

            6.3. Exercise Period. Options may be exercisable within the times or
upon the events determined by the Committee as set forth in the Stock Option
Agreement governing such Option; provided, however, that (i) no Option will be
exercisable after the expiration of one hundred twenty (120) months from the
date the Option is granted; (ii) no ISO granted to a Ten Percent Shareholder
shall be exercisable after the expiration of five (5) years from the date the
ISO is granted, and (iii) regarding an ISO granted to an employee who is not a
Company officer, director or consultant, such ISO shall be exercisable at a rate
which is at least twenty percent (20%) per year over five (5) years from the
date the ISO is granted. The Committee also may provide for Options to become
exercisable at one time or from time to time, periodically or otherwise, in such
number of Shares or percentage of Shares as the Committee determines.

            6.4. Exercise Price. The Exercise Price of an Option will be
determined by the Committee when the Option is granted and may not be less than
one hundred percent (100%) of the Fair Market Value of the Shares on the date of
grant; provided, that: (i) the Exercise Price of an ISO will not be less than
one hundred percent (100%) of the Fair Market Value of the Shares on the date of
grant, and (ii) the Exercise Price of any ISO granted to a Ten Percent
Shareholder will not be less than one hundred ten percent (110%) of the Fair
Market Value of the Shares on the date of grant. Payment for the Shares
purchased shall be made in accordance with Section 9 of this Plan.

            6.5. Method of Exercise. Options may be exercised only by delivery
to the Company of a written stock option exercise agreement (the "Exercise
Agreement") in a form approved by the Committee (which need not be the same for
each Participant), stating the number of Shares being purchased, the
restrictions imposed on the Shares purchased under such Exercise Agreement, if
any, and such representations and agreements regarding the Participant's
investment intent and access to information and other matters, if any, as may be
required or desirable by the Company to comply with applicable securities laws,
together with payment in full of the Exercise Price for the number of Shares
being purchased.

            6.6. Termination. Notwithstanding the exercise periods set forth in
the Stock Option Agreement, exercise of an Option will always be subject to the
following:

                  (a) In the event of a Participant's death or Disability, the
term of the Option shall expire twelve (12) months (or such other period
specified in the Participant's

                                       32
<PAGE>

Stock Option Agreement provided that such period is at least six (6) months from
the date of termination) after such death or Disability but not later than the
original expiration date specified in the Stock Option Agreement.

                                       33
<PAGE>

                  (b) In the event that the Board determine that a Participant
be terminated by the Company for cause, the term of the Option shall expire
immediately after the Company's notice or advice of such termination is
dispatched to the Participant. For purposes of this Paragraph (b), "cause" shall
mean an act of embezzlement, fraud, dishonesty, breach of fiduciary duty to the
Company, or the deliberate disregard of rules of the Company which results in
loss, damage or injury to the Company, the unauthorized disclosure of any of the
secrets or confidential information of the Company, the inducement of any client
or customer of the Company to break any contract with the Company, or the
inducement of any principal for whom the Company acts as agent to terminate such
agency relationship, the engagement of any conduct which constitutes unfair
competition with the Company, the removal of Participant from office by any
court or bank regulatory agency, or such other similar acts which the Committee
in its discretion determine to constitute good cause for termination of
Participant's service. In making such determination of cause, the Board shall
give the Participant an opportunity to appear before the Board and present
evidence on the Participant's behalf. As used in this Paragraph (b), Company
includes any subsidiaries of the Company.

                  (c) As a result of termination for any reason other than
death, Disability or cause, the term of the Option shall expire three (3) months
(or such other period specified in the Stock Option Agreement, provided that the
period is at least thirty (30) days from the date of termination ) after such
termination, but not later than the original expiration date specified in the
Stock Option Agreement.

            6.7. Minimum Share Exercise. The Committee may specify a reasonable
minimum number of Shares that may be purchased on any exercise of an Option;
provided that such minimum number will not prevent the Participant from
exercising the Option for the full number of Shares for which it is then
exercisable.

            6.8. Limitations on ISOs. The aggregate Fair Market Value
(determined as of the date of grant) of Shares with respect to which ISOs are
exercisable for the first time by a Participant during any calendar year (under
this Plan or under any other incentive stock option plan of the Company) will
not exceed One Hundred Thousand Dollars ($100,000). If the Fair Market Value of
Shares on the date of grant with respect to which ISOs are exercisable for the
first time by a Participant during any calendar year exceeds One Hundred
Thousand Dollars ($100,000), then the Options for the first One Hundred Thousand
Dollars ($100,000) worth of Shares to become exercisable in such calendar year
will be ISOs and the Options for the amount in excess of One Hundred Thousand
Dollars ($100,000) that become exercisable in that calendar year will be NQSOs.
In the event that the Code or the regulations promulgated thereunder are amended
after the Effective Date of this Plan to provide for a different limit on the
Fair Market Value of Shares permitted to be subject to ISOs, such different
limit will be automatically incorporated herein and will apply to any Options
granted after the effective date of such amendment.

            6.9. Modification, Extension or Renewal of Options. The Committee
may modify, extend or renew outstanding Options and authorize the grant of new
Options in substitution therefor; provided that any such action may not, without
the written consent of a Participant, impair any of such Participant's rights
under any Option previously granted. Any outstanding ISO that is modified,
extended, renewed or otherwise altered will be treated in accordance with
Section 424(h) of the Code. The Committee may reduce the Exercise Price of

                                       34
<PAGE>

outstanding Options without the consent of Participants affected by a written
notice to them; provided, however, that the Exercise Price may not be reduced
below the minimum Exercise Price that would be permitted under Section 6.4 of
this Plan for Options granted on the date the action is taken to reduce the
Exercise Price.

            6.10. No Disqualification. Notwithstanding any other provision in
this Plan, no term of this Plan relating to ISOs will be interpreted, amended or
altered, nor will any discretion or authority granted under this Plan be
exercised so as to disqualify this Plan under Section 422 of the Code or,
without the consent of the Participant affected, to disqualify any ISO under
Section 422 of the Code.

      7. RESTRICTED STOCK. A Restricted Stock Award shall mean an offer by the
Company to sell to an eligible person Shares that are subject to restrictions.
The Committee will determine to whom an offer will be made, the number of Shares
the person may purchase, the price to be paid (the "Purchase Price"), the
restrictions to which the Shares will be subject, and all other terms and
conditions of the Restricted Stock Award, subject to the following:

            7.1. Form of Restricted Stock Award. All purchases under a
Restricted Stock Award made pursuant to this Plan will be evidenced by an Award
Agreement ("Restricted Stock Purchase Agreement") that will be in such form
(which need not be the same for each Participant) as the Committee will from
time to time approve, and will comply with and be subject to the terms and
conditions of this Plan. The offer of Restricted Stock will be accepted by the
Participant's execution and delivery of the Restricted Stock Purchase Agreement
and full payment for the Shares to the Company within thirty (30) days from the
date the Restricted Stock Purchase Agreement is delivered to the person. If such
person does not execute and deliver the Restricted Stock Purchase Agreement
along with full payment for the Shares to the Company within thirty (30) days,
then the offer will terminate, unless otherwise determined by the Committee.

            7.2. Purchase Price. The Purchase Price of Shares sold pursuant to a
Restricted Stock Award will be determined by the Committee and will be at least
eighty-five percent (85%) of the Fair Market Value of the Shares on the date the
Restricted Stock Award is granted, except in the case of a sale to a Ten Percent
Shareholder, in which case the Purchase Price will be one hundred percent (100%)
of the Fair Market Value. Payment of the Purchase Price may be made in
accordance with Section 9 of this Plan.

            7.3. Restrictions. Restricted Stock Awards will be subject to such
restrictions (if any) as the Committee may impose. The Committee may provide for
the lapse of such restrictions in installments and may accelerate or waive such
restrictions, in whole or part, based on length of service, performance or such
other factors or criteria as the Committee may determine.

      8. STOCK BONUSES.

            8.1. Awards of Stock Bonuses. A Stock Bonus shall mean an award of
Shares (which may consist of Restricted Stock) for services rendered to the
Company. A Stock Bonus may be awarded for past services already rendered to the
Company, pursuant to an Award Agreement (the "Stock Bonus Agreement") that will
be in such form (which need not be the same for each Participant) as the
Committee will from time to time approve, and will comply with and

                                       35
<PAGE>

be subject to the terms and conditions of this Plan. A Stock Bonus may be
awarded upon satisfaction of such performance goals as are set out in advance in
the Participant's individual Award Agreement (the "Performance Stock Bonus
Agreement") that will be in such form (which need not be the same for each
Participant) as the Committee will from time to time approve, and will comply
with and be subject to the terms and conditions of this Plan. Stock Bonuses may
vary from Participant to Participant and between groups of Participants, and may
be based upon the achievement of the Company and/or individual performance
factors or upon such other criteria as the Committee may determine.

            8.2. Terms of Stock Bonuses. The Committee will determine the number
of Shares to be awarded to the Participant pursuant to this Section 8 and
whether such Shares will be Restricted Stock. If the Stock Bonus is being earned
upon the satisfaction of performance goals pursuant to a Performance Stock Bonus
Agreement, then the Committee will determine (i) the nature, length and starting
date of any period during which performance is to be measured (the "Performance
Period ") for each Stock Bonus; (ii) the performance goals and criteria to be
used to measure the performance, if any; (iii) the number of Shares that may be
awarded to the Participant; and (iv) the extent to which such Stock Bonuses have
been earned. Performance Periods may overlap and Participants may participate
simultaneously with respect to Stock Bonuses that are subject to different
Performance Periods and different performance goals and other criteria. The
number of Shares may be fixed or may vary in accordance with such performance
goals and criteria as may be determined by the Committee. The Committee may
adjust the performance goals applicable to the Stock Bonuses to take into
account changes in law and accounting or tax rules and to make such adjustments
as the Committee deems necessary or appropriate to reflect the impact of
extraordinary or unusual items, events or circumstances to avoid windfalls or
hardships.

            8.3. Form of Payment. The earned portion of a Stock Bonus may be
paid currently or on a deferred basis with such interest or dividend equivalent,
if any, as the Committee may determine. Payment may be made in the form of cash,
whole Shares, including Restricted Stock, or a combination thereof, either in a
lump sum payment or in installments, all as the Committee determines.

            8.4. Termination During Performance Period. If a Participant is
Terminated during a Performance Period for any reason, then such Participant
will be entitled to payment (whether in Shares, cash or otherwise) with respect
to the Stock Bonus only to the extent earned as of the Termination Date in
accordance with the Performance Stock Bonus Agreement, unless the Committee
determines otherwise.

      9. PAYMENT FOR SHARE PURCHASES.

            9.1 General Rule. The entire Exercise Price of Shares issued under
the Plan shall be payable in lawful money of the United States of America or its
equivalent (e.g. certified check, official bank check or money order) at the
time when such Shares are purchased, except as follows:

                  (a) ISOs. In the case of an ISO granted under the Plan,
payment shall be made only pursuant to the express provisions of the applicable
Stock Option Agreement. However, the Committee (at its sole discretion) may
specify in the Stock Option Agreement that

                                       36
<PAGE>

payment may be made pursuant to Subsections 9.2, 9.3, 9.4 or 9.5 below.

                  (b) NQSOs. In the case of a NQSO granted under the Plan, the
Committee (at its sole discretion) may accept payment pursuant to Subsections
9.2, 9.3, 9.4 or 9.5 below.

            9.2 Surrender of Stock. Payment may be made all or in part with
Shares which have already been owned by the Participant or their representative
for more than six months and which are surrendered to the Company in good form
for transfer. Such Shares shall be valued at their Fair Market Value on the date
when the new Shares are purchased under the Plan.

            9.3 Exercise/Sale. Payment may be made by the delivery (on a form
prescribed by the Company) of an irrevocable direction to a securities broker to
sell Shares and to deliver all or part of the sales proceeds to the Company in
payment of all or part of the Exercise Price and any withholding taxes.

            9.4 Exercise/Pledge. Payment may be made by the delivery (on a form
prescribed by the Company) of an irrevocable direction to pledge Shares to a
securities broker or lender approved by the Company, as security for a loan, and
to deliver all or part of the loan proceeds to the Company in payment of all or
part of the Exercise Price and any withholding taxes.

            9.5 Combination. By any combination of the permissible forms of
payment.

      10. WITHHOLDING TAXES. As a condition to the exercise of an Option, the
Participant shall make such arrangements as the Committee may require for the
satisfaction of any federal, state, local or foreign withholding tax obligations
that arise in connection with such exercise. The Participant shall also make
such arrangements as the Committee may require for the satisfaction of any
federal, state, local or foreign withholding tax obligations that may arise in
connection with the disposition of Shares acquired by exercising an Option. The
Committee may permit the Participant to satisfy all or part of his or her tax
obligations related to the Option by having the Company withhold a portion of
any Shares that otherwise would be issued to him or her or by surrendering any
Shares that previously were acquired by him or her. Such Shares shall be valued
at their Fair Market Value on the date when taxes otherwise would be withheld in
cash. The payment of taxes by assigning Shares to the Company, if permitted by
the Committee, shall be subject to such restrictions as the Committee may
impose.

      11. PRIVILEGES OF STOCK OWNERSHIP.

            11.1. Voting and Dividends. No Participant will have any of the
rights of a shareholder with respect to any Shares until the Shares (and not
simply an Option) are issued to the Participant. After Shares are issued to the
Participant, the Participant will be a shareholder and have all the rights of a
shareholder with respect to such Shares, including the right to vote and receive
all dividends or other distributions made or paid with respect to such Shares.
If such Shares are Restricted Stock, any new, additional or different securities
the Participant may become entitled to receive with respect to such Shares by
virtue of a stock dividend, stock split or any other change in the corporate or
capital structure of the Company will be subject to the same

                                       37
<PAGE>

restrictions as the Restricted Stock. Furthermore, Participant will have no
right to retain such stock dividends or stock distributions with respect to
Shares that are repurchased at the Participant's original Purchase Price
pursuant to Section 13.

            11.2. Financial Statements. The Company will provide to each
Participant prior to the Participant's purchase of Shares under this Plan, and
to each Participant annually during the period the Participant has Awards
outstanding, annual reports and all other information provided to all
shareholders of the Company. The Company will not be required to provide such
information to Participants whose services in connection with the Company assure
them access to equivalent information.

      12. TRANSFERABILITY. Awards granted under this Plan, and any interest
therein, are not transferable or assignable by the Participant other than by
will, the laws of descent and distribution, by an instrument to an inter vivos
or testamentary trust in which the Awards are to be passed to beneficiaries upon
the death of the trustor (settlor), or as consistent with the Award Agreement
provisions related thereto. During the lifetime of the Participant, an Award
will be exercisable only by the Participant and any elections with respect to an
Award may be made only by the Participant.

      13. REPURCHASE. At the discretion of the Committee, the Company may
reserve unto itself and/or its assignee(s) in the Award Agreement a right to
repurchase all or a portion of the Unvested Shares held by a Participant
following such Participant's Termination at any time within ninety (90) days
after the later of the Participant's Termination Date and the date Participant
purchases Shares under this Plan, for cash and/or cancellation of purchase money
indebtedness, at the Participant's Exercise Price or Purchase Price, as the case
may be; provided that the right to repurchase at such price lapses at the rate
of at least twenty percent (20%) of the Shares per year over five (5) years from
the date that the Option is granted.

      14. CERTIFICATES. All certificates for Shares or other securities
delivered under this Plan will be subject to such stock transfer orders, legends
and other restrictions as the Committee may deem necessary or advisable,
including restrictions under any applicable federal, state or foreign securities
laws, or any rules, regulations and other requirements of the SEC or any stock
exchange or automated quotation system upon which the Shares may be listed or
quoted.

      15. ESCROW. To enforce any restrictions on a Participant's Shares, the
Committee may require the Participant to deposit all certificates representing
Shares, together with stock powers or other instruments of transfer approved by
the Committee, appropriately endorsed in blank, with the Company or an agent
designated by the Company to hold in escrow until such restrictions have lapsed
or terminated, and the Committee may cause a legend or legends referencing such
restrictions to be placed on the certificates.

      16. EXCHANGE AND BUYOUT OF AWARDS. The Committee may, at any time or from
time to time, authorize the Company, with the consent of the respective
Participants, to issue new Awards in exchange for the surrender and cancellation
of any or all outstanding Awards. The Committee may at any time buy from a
Participant an Award previously granted with payment in cash, Shares (including
Restricted Stock) or other consideration, based on such terms and conditions as
the Committee and the Participant may agree.

                                       38
<PAGE>

      17. SECURITIES LAW AND OTHER REGULATORY COMPLIANCE. An Award will not be
effective unless such Award is in compliance with all applicable federal and
state securities laws, rules and regulations of any governmental body, and the
requirements of any stock exchange or automated quotation system upon which the
Shares may then be listed or quoted, as they are in effect on the date of grant
of the Award and also on the date of exercise or other issuance. Notwithstanding
any other provision in this Plan, the Company will have no obligation to issue
or deliver certificates for Shares under this Plan prior to (i) obtaining any
approvals from governmental agencies that the Company determines are necessary
or advisable; and/or (ii) completion of any registration or other qualification
of such Shares under any state or federal laws or rulings of any governmental
body that the Company determines to be necessary or advisable. The Company will
be under no obligation to register the Shares with the SEC or to effect
compliance with the registration, qualification or listing requirements of any
state securities laws, stock exchange or automated quotation system, and the
Company will have no liability for any inability or failure to do so.

      18. NO OBLIGATION TO EMPLOY. Nothing in this Plan or any Award granted
under this Plan will confer or be deemed to confer on any Participant any right
to continue in the employ of, or to continue any other relationship with, the
Company or limit in any way the right of the Company to terminate such
Participant's employment or other relationship at any time, with or without
cause.

      19. CORPORATE TRANSACTIONS.

            19.1 Reorganizations. In the event that the Company is a party to a
merger or other reorganization involving a Change in Control (as defined below),
the outstanding Options shall be subject to the agreement of merger or
reorganization. such agreement may provide, without limitation, for the
assumption of outstanding Options by the surviving corporation or its parent,
for their continuation by the Company (if the Company is a surviving
corporation), for payment of a cash settlement equal to the difference between
the amount to be paid for one Share under such agreement and the Exercise Price,
or for the acceleration of their exercisability followed by the cancellation of
Options not exercised, in all cases without the Participants' consent. Any
cancellation shall not occur until after such acceleration is effective and
Participants have been notified of such acceleration and have had reasonable
opportunity to exercise their Options. In no event will a Participant be given
fewer than five (5) business days following notice of acceleration to exercise
their Options.

                  (a) "Change in Control" means the occurrence of any of the
following events:

                        (i) A change in the composition of the Board, which
results in fewer than one-half of the incumbent directors who either: (A) had
been directors of the Company 24 months prior to such change; or (B) were
elected, or nominated for election, to the Board with the affirmative votes of
at least a majority of the directors who had been directors of the Company 24
months prior to such change and who were still in office at the time of the
election or nomination;

                        (ii) Any "person" (as such term is used in sections
13(d) and 14(d) of

                                       39
<PAGE>

the Exchange Act) who by the acquisition or aggregation of securities is or
becomes the beneficial owner, directly or indirectly, of securities of the
Company representing twenty-five percent (25%) or more of the combined voting
power of the Company's then outstanding securities. For purposes of this
Paragraph (ii), the term "person" shall not include an employee benefit plan
maintained by the Company;

                        (iii) A tender offer shall be made and consummated for
the ownership of twenty-five percent (25%) or more of the outstanding voting
securities of the Company;

                        (iv) The Company or its subsidiary bank shall be merged
or consolidated with another bank or corporation and as a result of such merger
or consolidation less than seventy-five percent (75%) of the outstanding voting
securities of the surviving or resulting bank or corporation shall be owned in
the aggregate by the former shareholders of the Company, other than affiliates
(within the meaning of the Securities Exchange Act of 1934) of any party to such
merger or consolidation, as the same shall have existed immediately prior to
such merger or consolidation.

            19.2 Other Treatment of Awards. Subject to any greater rights
granted to Participants under the foregoing provisions of this Section 19, in
the event of the occurrence of any transaction described in Section 19.1, any
outstanding Awards will be treated as provided in the applicable agreement or
plan of merger, consolidation, dissolution, liquidation, sale of assets or other
corporate transaction.

            19.3. Assumption of Awards by the Company. The Company, from time to
time, also may substitute or assume outstanding awards granted by another
company, whether in connection with an acquisition of such other company or
otherwise, by either (a) granting an Award under this Plan in substitution of
such other company's award; or (b) assuming such award as if it had been granted
under this Plan if the terms of such assumed award could be applied to an Award
granted under this Plan. Such substitution or assumption will be permissible if
the holder of the substituted or assumed award would have been eligible to be
granted an Award under this Plan if the other company had applied the rules of
this Plan to such grant. In the event the Company assumes an award granted by
another company, the terms and conditions of such award will remain unchanged
(except that the exercise price and the number and nature of Shares issuable
upon exercise of any such option will be adjusted appropriately pursuant to
Section 424(a) of the Code). In the event the Company elects to grant a new
Option rather than assuming an existing option, such new Option may be granted
with a similarly adjusted Exercise Price.

      20. ADOPTION AND SHAREHOLDER APPROVAL. This Plan shall become effective
upon approval of this Plan by the shareholders of the Company, consistent with
applicable laws, provided that such shareholder approval shall be within twelve
(12) months before or after the date this Plan is adopted by the Board
("Effective Date").

      21. TERM OF PLAN. Unless earlier terminated as provided herein, this Plan
will terminate ten (10) years from the Effective Date.

                                       40
<PAGE>

      22. GOVERNING LAW. This Plan and all agreements thereunder shall be
governed by and construed in accordance with the laws of the State of
California, excluding its conflict of laws rules.

      23. AMENDMENT OR TERMINATION OF PLAN. The Board may at any time terminate
or amend this Plan in any respect, including without limitation amendment of any
form of Award Agreement or instrument to be executed pursuant to this Plan;
provided, however, that the Board will not, without the approval of the
shareholders of the Company, amend this Plan in any manner that requires such
shareholder approval pursuant to the Code or the regulations promulgated
thereunder as such provisions apply to ISO plans or (if the Company is subject
to the Exchange Act or Section 16(b) of the Exchange Act) pursuant to the
Exchange Act or Rule 16b-3 (or its successor), as amended, respectively.

      24. NONEXCLUSIVITY OF THE PLAN. Neither the adoption of this Plan by the
Board, the submission of this Plan to the shareholders of the Company for
approval, nor any provision of this Plan will be construed as creating any
limitations on the power of the Board to adopt such additional compensation
arrangements as it may deem desirable, including, without limitation, the
granting of stock options and bonuses otherwise than under this Plan, and such
arrangements may be either generally applicable or applicable only in specific
cases.

                                       41

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