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                                                                    Exhibit 10.1

                        MULTILINK TECHNOLOGY CORPORATION

                           INDEMNIFICATION AGREEMENT

     This Indemnification Agreement ("Agreement") is effective as of
___________, 2000 by and between Multilink Technology Corporation, a California
corporation (the "Company"), and ______________ ("Indemnitee").

     WHEREAS, the Company desires to attract and retain the services of highly
qualified individuals, such as Indemnitee, to serve the Company and its related
entities;

     WHEREAS, in order to induce Indemnitee to continue to provide services to
the Company, the Company wishes to provide for the indemnification of, and the
advancement of expenses to, Indemnitee to the maximum extent permitted by law;

     WHEREAS, the Company and Indemnitee recognize the continued difficulty in
obtaining liability insurance for the Company's directors, officers, employees,
agents and fiduciaries, the significant increases in the cost of such insurance
and the general reductions in the coverage of such insurance;

     WHEREAS, the Company and Indemnitee further recognize the substantial
increase in corporate litigation in general, subjecting directors, officers,
employees, agents and fiduciaries to expensive litigation risks at the same time
as the availability and coverage of liability insurance has been severely
limited; and

     WHEREAS, in connection with the Company's initial public offering, the
Company and Indemnitee desire to continue to have in place the additional
protection provided by an indemnification agreement, with such changes as are
required to conform the existing agreement to California law and to provide
indemnification and advancement of expenses to the Indemnitee to the maximum
extent permitted by California law;

     WHEREAS, in view of the considerations set forth above, the Company desires
that Indemnitee shall be indemnified and advanced expenses by the Company as set
forth herein;

     NOW, THEREFORE, the Company and Indemnitee hereby agree as set forth below.

     1.   Certain Definitions.
          -------------------

          a.  "Change in Control" shall mean, and shall be deemed to have
occurred if, on or after the date of this Agreement, (i) any "person" (as such
term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934,
as amended), other than a trustee or other fiduciary holding securities under an
employee benefit plan of the Company acting in such capacity or a corporation
owned directly or indirectly by the Shareholders of the Company in substantially
the same proportions as their ownership of stock of the Company, becomes the
"beneficial owner" (as defined in Rule 13d-3 under said Act), directly or
indirectly, of securities of the Company representing more than 50% of the total
voting power represented by the Company's then outstanding Voting Securities,
(ii) during any period of two consecutive years,
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individuals who at the beginning of such period constitute the Board of
Directors of the Company and any new director whose election by the Board of
Directors or nomination for election by the Company's Shareholders was approved
by a vote of at least two thirds (2/3) of the directors then still in office who
either were directors at the beginning of the period or whose election or
nomination for election was previously so approved, cease for any reason to
constitute a majority thereof, (iii) the Shareholders of the Company approve a
merger or consolidation of the Company with any other corporation other than a
merger or consolidation which would result in the Voting Securities of the
Company outstanding immediately prior thereto continuing to represent (either by
remaining outstanding or by being converted into Voting Securities of the
surviving entity) at least 80% of the total voting power represented by the
Voting Securities of the Company or such surviving entity outstanding
immediately after such merger or consolidation, or (iv) the Shareholders of the
Company approve a plan of complete liquidation of the Company or an agreement
for the sale or disposition by the Company of (in one transaction or a series of
related transactions) all or substantially all of the Company's assets.

          b   "Claim" shall mean with respect to a Covered Event: any
threatened, pending or completed action, suit, proceeding or alternative dispute
resolution mechanism, or any hearing, inquiry or investigation that Indemnitee
in good faith believes might lead to the institution of any such action, suit,
proceeding or alternative dispute resolution mechanism, whether civil, criminal,
administrative, investigative or other.

          c.  References to the "Company" shall include, in addition to
Multilink Technology Corporation, any constituent corporation (including any
constituent of a constituent) absorbed in a consolidation or merger to which
Multilink Technology Corporation (or any of its wholly owned subsidiaries) is a
party which, if its separate existence had continued, would have had power and
authority to indemnify its directors, officers, employees, agents or
fiduciaries, so that if Indemnitee is or was a director, officer, employee,
agent or fiduciary of such constituent corporation, or is or was serving at the
request of such constituent corporation as a director, officer, employee, agent
or fiduciary of another corporation, partnership, joint venture, employee
benefit plan, trust or other enterprise, Indemnitee shall stand in the same
position under the provisions of this Agreement with respect to the resulting or
surviving corporation as Indemnitee would have with respect to such constituent
corporation if its separate existence had continued.

          d.  "Covered Event" shall mean any event or occurrence related to the
fact that Indemnitee is or was a director, officer, employee, agent or fiduciary
of the Company, or any subsidiary of the Company, or is or was serving at the
request of the Company as a director, officer, employee, agent or fiduciary of
another corporation, partnership, joint venture, trust or other enterprise, or
by reason of any action or inaction on the part of Indemnitee while serving in
such capacity.

          e.  "Expenses" shall mean any and all expenses (including attorneys'
fees and all other costs, expenses and obligations incurred in connection with
investigating, defending, being a witness in or participating in (including on
appeal), or preparing to defend, to be a witness in or to participate in, any
action, suit, proceeding, alternative dispute resolution mechanism, hearing,
inquiry or investigation), judgments, fines, penalties and amounts paid in
settlement (if such settlement is approved in advance by the Company, which
approval shall not

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be unreasonably withheld) of any Claim and any federal, state, local or foreign
taxes imposed on the Indemnitee as a result of the actual or deemed receipt of
any payments under this Agreement.

          f.  "Expense Advance" shall mean a payment to Indemnitee pursuant to
Section 3 of Expenses in advance of the settlement of or final judgement in any
action, suit, proceeding or alternative dispute resolution mechanism, hearing,
inquiry or investigation which constitutes a Claim.

          g.  "Independent Legal Counsel" shall mean an attorney or firm of
attorneys, selected in accordance with the provisions of Section 2(d) hereof,
who shall not have otherwise performed services for the Company or Indemnitee
within the last three years (other than with respect to matters concerning the
rights of Indemnitee under this Agreement, or of other Indemnitees under similar
indemnity agreements).

          h.  References to "other enterprises" shall include employee benefit
plans; references to "fines" shall include any excise taxes assessed on
Indemnitee with respect to an employee benefit plan; and references to "serving
at the request of the Company" shall include any service as a director, officer,
employee, agent or fiduciary of the Company which imposes duties on, or involves
services by, such director, officer, employee, agent or fiduciary with respect
to an employee benefit plan, its participants or its beneficiaries; and if
Indemnitee acted in good faith and in a manner Indemnitee reasonably believed to
be in the interest of the participants and beneficiaries of an employee benefit
plan, Indemnitee shall be deemed to have acted in a manner "not opposed to the
best interests of the Company" as referred to in this Agreement.

          i.  "Reviewing Party" shall mean, subject to the provisions of Section
2(d), any person or body appointed by the Board of Directors in accordance with
applicable law to review the Company's obligations hereunder and under
applicable law, which may include a member or members of the Company's Board of
Directors, Independent Legal Counsel or any other person or body not a party to
the particular Claim for which Indemnitee is seeking indemnification.

          j.  "Section" refers to a section of this Agreement unless otherwise
indicated.

          k.  "Voting Securities" shall mean any securities of the Company that
vote generally in the election of directors.

     2.   Indemnification.
          ---------------

          a.  Indemnification of Expenses.  Subject to the provisions of Section
              ---------------------------
2(b) below, the Company shall indemnify Indemnitee for Expenses to the fullest
extent permitted by law if Indemnitee was or is or becomes a party to or witness
or other participant in, or is threatened to be made a party to or witness or
other participant in, any Claim (whether by reason of or arising in part out of
a Covered Event), including all interest, assessments and other charges paid or
payable in connection with or in respect of such Expenses.

          b.  Review of Indemnification Obligations.  Notwithstanding the
              -------------------------------------
foregoing, in the event any Reviewing Party shall have determined (in a written
opinion, in any case in which

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Independent Legal Counsel is the Reviewing Party) that Indemnitee is not
entitled to be indemnified hereunder under applicable law, (i) the Company shall
have no further obligation under Section 2(a) to make any payments to Indemnitee
not made prior to such determination by such Reviewing Party, and (ii) the
Company shall be entitled to be reimbursed by Indemnitee (who hereby agrees to
reimburse the Company) for all Expenses theretofore paid to Indemnitee to which
Indemnitee is not entitled hereunder under applicable law; provided, however,
that if Indemnitee has commenced or thereafter commences legal proceedings in a
court of competent jurisdiction to secure a determination that Indemnitee is
entitled to be indemnified hereunder under applicable law, any determination
made by any Reviewing Party that Indemnitee is not entitled to be indemnified
hereunder under applicable law shall not be binding and Indemnitee shall not be
required to reimburse the Company for any Expenses theretofore paid in
indemnifying Indemnitee until a final judicial determination is made with
respect thereto (as to which all rights of appeal therefrom have been exhausted
or lapsed). Indemnitee's obligation to reimburse the Company for any Expenses
shall be unsecured and no interest shall be charged thereon.

          c.  Indemnitee Rights on Unfavorable Determination; Binding Effect.
              --------------------------------------------------------------
If any Reviewing Party determines that Indemnitee substantively is not entitled
to be indemnified hereunder in whole or in part under applicable law, Indemnitee
shall have the right to commence litigation seeking an initial determination by
the court or challenging any such determination by such Reviewing Party or any
aspect thereof, including the legal or factual bases therefor, and, subject to
the provisions of Section 15, the Company hereby consents to service of process
and to appear in any such proceeding. Absent such litigation, any determination
by any Reviewing Party shall be conclusive and binding on the Company and
Indemnitee.

          d.  Selection of Reviewing Party; Change in Control.  If there has not
              -----------------------------------------------
been a Change in Control, any Reviewing Party shall be selected by the Board of
Directors, and if there has been such a Change in Control (other than a Change
in Control which has been approved by a majority of the Company's Board of
Directors who were directors immediately prior to such Change in Control), any
Reviewing Party with respect to all matters thereafter arising concerning the
rights of Indemnitee to indemnification of Expenses under this Agreement or any
other agreement or under the Company's Articles of Incorporation or Bylaws as
now or hereafter in effect, or under any other applicable law, if desired by
Indemnitee, shall be Independent Legal Counsel selected by Indemnitee and
approved by the Company (which approval shall not be unreasonably withheld).
Such counsel, among other things, shall render its written opinion to the
Company and Indemnitee as to whether and to what extent Indemnitee would be
entitled to be indemnified hereunder under applicable law and the Company agrees
to abide by such opinion. The Company agrees to pay the reasonable fees of the
Independent Legal Counsel referred to above and to indemnify fully such counsel
against any and all expenses (including attorneys' fees), claims, liabilities
and damages arising out of or relating to this Agreement or its engagement
pursuant hereto. Notwithstanding any other provision of this Agreement, the
Company shall not be required to pay Expenses of more than one Independent Legal
Counsel in connection with all matters concerning a single Indemnitee, and such
Independent Legal Counsel shall be the Independent Legal Counsel for any or all
other Indemnitees unless (i) the employment of separate counsel by one or more
Indemnitees has been previously authorized by the Company in writing, or (ii) an
Indemnitee shall have provided to the Company a written statement that such
Indemnitee has reasonably concluded that there may be a conflict of interest

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between such Indemnitee and the other Indemnitees with respect to the matters
arising under this Agreement.

          e.  Mandatory Payment of Expenses.  Notwithstanding any other
              -----------------------------
provision of this Agreement other than Section 10 hereof, to the extent that
Indemnitee has been successful on the merits or otherwise, including, without
limitation, the dismissal of an action without prejudice, in defense of any
Claim, Indemnitee shall be indemnified against all Expenses incurred by
Indemnitee in connection therewith.

     3.   Expense Advances.
          ----------------

          a.  Obligation to Make Expense Advances.  Upon receipt of a written
              -----------------------------------
undertaking by or on behalf of the Indemnitee to repay such amounts if it shall
ultimately be determined that the Indemnitee is not entitled to be indemnified
therefore by the Company hereunder under applicable law, the Company shall make
Expense Advances to Indemnitee.

          b.  Form of Undertaking.  Any obligation to repay any Expense Advances
              -------------------
hereunder pursuant to a written undertaking by the Indemnitee shall be unsecured
and no interest shall be charged thereon.

          c.  Determination of Reasonable Expense Advances.  The parties agree
              --------------------------------------------
that for the purposes of any Expense Advance for which Indemnitee has made
written demand to the Company in accordance with this Agreement, all Expenses
included in such Expense Advance that are certified by affidavit of Indemnitee's
counsel as being reasonable shall be presumed conclusively to be reasonable.

     4.   Procedures for Indemnification and Expense Advances.
          ---------------------------------------------------

          a.  Timing of Payments.  All payments of Expenses (including without
              ------------------
limitation Expense Advances) by the Company to the Indemnitee pursuant to this
Agreement shall be made to the fullest extent permitted by law as soon as
practicable after written demand by Indemnitee therefor is presented to the
Company, but in no event later than thirty (30) business days after such written
demand by Indemnitee is presented to the Company, except in the case of Expense
Advances, which shall be made no later than ten (10) business days after such
written demand by Indemnitee is presented to the Company.

          b.  Notice/Cooperation by Indemnitee.  Indemnitee shall, as a
              --------------------------------
condition precedent to Indemnitee's right to be indemnified or Indemnitee's
right to receive Expense Advances under this Agreement, give the Company notice
in writing as soon as practicable of any Claim made against Indemnitee for which
indemnification will or could be sought under this Agreement. Notice to the
Company shall be directed to the Chief Executive Officer of the Company at the
address shown on the signature page of this Agreement (or such other address as
the Company shall designate in writing to Indemnitee). In addition, Indemnitee
shall give the Company such information and cooperation as it may reasonably
require and as shall be within Indemnitee's power.

          c.  No Presumptions; Burden of Proof.  For purposes of this Agreement,
              --------------------------------
the termination of any Claim by judgment, order, settlement (whether with or
without court

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approval) or conviction, or upon a plea of nolocontendere, or its equivalent,
shall not create a presumption that Indemnitee did not meet any particular
standard of conduct or have any particular belief or that a court has determined
that indemnification is not permitted by this Agreement or applicable law. In
addition, neither the failure of any Reviewing Party to have made a
determination as to whether Indemnitee has met any particular standard of
conduct or had any particular belief, nor an actual determination by any
Reviewing Party that Indemnitee has not met such standard of conduct or did not
have such belief, prior to the commencement of legal proceedings by Indemnitee
to secure a judicial determination that Indemnitee should be indemnified under
this Agreement under applicable law, shall be a defense to Indemnitee's claim or
create a presumption that Indemnitee has not met any particular standard of
conduct or did not have any particular belief. In connection with any
determination by any Reviewing Party or otherwise as to whether the Indemnitee
is entitled to be indemnified hereunder under applicable law, the burden of
proof shall be on the Company to establish that Indemnitee is not so entitled.

          d.  Notice to Insurers.  If, at the time of the receipt by the Company
              ------------------
of a notice of a Claim pursuant to Section 4(b) hereof, the Company has
liability insurance in effect which may cover such Claim, the Company shall give
prompt notice of the commencement of such Claim to the insurers in accordance
with the procedures set forth in the respective policies. The Company shall
thereafter take all necessary or desirable action to cause such insurers to pay,
on behalf of the Indemnitee, all amounts payable as a result of such Claim in
accordance with the terms of such policies.

          e.  Selection of Counsel.  In the event the Company shall be obligated
              --------------------
hereunder to provide indemnification for or make any Expense Advances with
respect to the Expenses of any Claim, the Company, if appropriate, shall be
entitled to assume the defense of such Claim with counsel approved by Indemnitee
(which approval shall not be unreasonably withheld) upon the delivery to
Indemnitee of written notice of the Company's election to do so. After delivery
of such notice, approval of such counsel by Indemnitee and the retention of such
counsel by the Company, the Company will not be liable to Indemnitee under this
Agreement for any fees or expenses of separate counsel subsequently retained by
or on behalf of Indemnitee with respect to the same Claim; provided that, (i)
Indemnitee shall have the right to employ Indemnitee's separate counsel in any
such Claim at Indemnitee's expense and (ii) if (A) the employment of separate
counsel by Indemnitee has been previously authorized by the Company, (B)
Indemnitee shall have reasonably concluded that there may be a conflict of
interest between the Company and Indemnitee in the conduct of any such defense,
or (C) the Company shall not continue to retain such counsel to defend such
Claim, then the fees and expenses of Indemnitee's separate counsel shall be
Expenses for which Indemnitee may receive indemnification or Expense Advances
hereunder.

     5.   Additional Indemnification Rights; Nonexclusivity.
          -------------------------------------------------

          a.  Scope.  The Company hereby agrees to indemnify the Indemnitee to
              -----
the fullest extent permitted by law, notwithstanding that such indemnification
is not specifically authorized by the other provisions of this Agreement, the
Company's Articles of Incorporation, the Company's Bylaws or by statute. In the
event of any change after the date of this Agreement in any applicable law,
statute or rule which expands the right of a California corporation to indemnify
a member of its board of directors or an officer, employee, agent or fiduciary,
it is the

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intent of the parties hereto that Indemnitee shall enjoy by this Agreement the
greater benefits afforded by such change. In the event of any change in any
applicable law, statute or rule which narrows the right of a California
corporation to indemnify a member of its board of directors or an officer,
employee, agent or fiduciary, such change, to the extent not otherwise required
by such law, statute or rule to be applied to this Agreement, shall have no
effect on this Agreement or the parties' rights and obligations hereunder except
as set forth in Section 10(a) hereof.

          b.  Nonexclusivity.  The indemnification and the payment of Expense
              --------------
Advances provided by this Agreement shall be in addition to any rights to which
Indemnitee may be entitled under the Company's Articles of Incorporation, its
Bylaws, any other agreement, any vote of Shareholders or disinterested
directors, the Corporation Law of the State of California, or otherwise. The
indemnification and the payment of Expense Advances provided under this
Agreement shall continue as to Indemnitee for any action taken or not taken
while serving in an indemnified capacity even though subsequent thereto
Indemnitee may have ceased to serve in such capacity.

     6.   No Duplication of Payments.  The Company shall not be liable under
          --------------------------
this Agreement to make any payment in connection with any Claim made against
Indemnitee to the extent Indemnitee has otherwise actually received payment
(under any insurance policy, provision of the Company's Articles of
Incorporation, Bylaws or otherwise) of the amounts otherwise payable hereunder.

     7.   Partial Indemnification.  If Indemnitee is entitled under any
          -----------------------
provision of this Agreement to indemnification by the Company for some or a
portion of Expenses incurred in connection with any Claim, but not, however, for
all of the total amount thereof, the Company shall nevertheless indemnify
Indemnitee for the portion of such Expenses to which Indemnitee is entitled.

     8.   Mutual Acknowledgment.  Both the Company and Indemnitee acknowledge
          ---------------------
that in certain instances, federal law or applicable public policy may prohibit
the Company from indemnifying its directors, officers, employees, agents or
fiduciaries under this Agreement or otherwise. Indemnitee understands and
acknowledges that the Company has undertaken or may be required in the future to
undertake with the Securities and Exchange Commission to submit the question of
indemnification to a court in certain circumstances for a determination of the
Company's right under public policy to indemnify Indemnitee.

     9    Liability Insurance.  To the extent the Company maintains liability
          -------------------
insurance applicable to directors, officers, employees, agents or fiduciaries,
Indemnitee shall be covered by such policies in such a manner as to provide
Indemnitee the same rights and benefits as are provided to the most favorably
insured of the Company's directors, if Indemnitee is a director; or of the
Company's officers, if Indemnitee is not a director of the Company but is an
officer; or of the Company's key employees, agents or fiduciaries, if Indemnitee
is not an officer or director but is a key employee, agent or fiduciary.

     10.  Exceptions.  Notwithstanding any other provision of this Agreement,
          ----------
the Company shall not be obligated pursuant to the terms of this Agreement:

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          a.  Excluded Action or Omissions.  To indemnify or make Expense
              ----------------------------
Advances to Indemnitee with respect to Claims arising out of acts, omissions or
transactions for which Indemnitee is prohibited from receiving indemnification
under applicable law.

          b.  Claims Initiated by Indemnitee.  To indemnify or make Expense
              ------------------------------
Advances to Indemnitee with respect to Claims initiated or brought voluntarily
by Indemnitee and not by way of defense, counterclaim or cross-claim, except (i)
with respect to actions or proceedings brought to establish or enforce a right
to indemnification under this Agreement or any other agreement or insurance
policy or under the Company's Articles of Incorporation or Bylaws now or
hereafter in effect relating to Claims for Covered Events, (ii) in specific
cases if the Board of Directors has approved the initiation or bringing of such
Claim, or (iii) as otherwise required under Section 145 of the California
General Corporation Law, regardless of whether Indemnitee ultimately is
determined to be entitled to such indemnification, Expense Advances, or
insurance recovery, as the case may be.

          c.  Lack of Good Faith.  To indemnify Indemnitee for any Expenses
              ------------------
incurred by the Indemnitee with respect to any action instituted (i) by
Indemnitee to enforce or interpret this Agreement, if a court having
jurisdiction over such action determines as provided in Section 13 that each of
the material assertions made by the Indemnitee as a basis for such action was
not made in good faith or was frivolous, or (ii) by or in the name of the
Company to enforce or interpret this Agreement, if a court having jurisdiction
over such action determines as provided in Section 13 that each of the material
defenses asserted by Indemnitee in such action was made in bad faith or was
frivolous.

          d.  Claims Under Section 16(b).  To indemnify Indemnitee for Expenses
              --------------------------
and the payment of profits arising from the purchase and sale by Indemnitee of
securities in violation of Section 16(b) of the Securities Exchange Act of 1934,
as amended, or any similar successor statute.

     11.  Counterparts.  This Agreement may be executed in one or more
          ------------
counterparts, each of which shall constitute an original.

     12.  Binding Effect; Successors and Assigns.  This Agreement shall be
          --------------------------------------
binding upon and inure to the benefit of and be enforceable by the parties
hereto and their respective successors, assigns (including any direct or
indirect successor by purchase, merger, consolidation or otherwise to all or
substantially all of the business or assets of the Company), spouses, heirs and
personal and legal representatives. The Company shall require and cause any
successor (whether direct or indirect, and whether by purchase, merger,
consolidation or otherwise) to all, substantially all, or a substantial part, of
the business or assets of the Company, by written agreement in form and
substance satisfactory to Indemnitee, expressly to assume and agree to perform
this Agreement in the same manner and to the same extent that the Company would
be required to perform if no such succession had taken place. This Agreement
shall continue in effect regardless of whether Indemnitee continues to serve as
a director, officer, employee, agent or fiduciary (as applicable) of the Company
or of any other enterprise at the Company's request.

     13.  Expenses Incurred in Action Relating to Enforcement or Interpretation.
          ---------------------------------------------------------------------
In the event that any action is instituted by Indemnitee under this Agreement or
under any liability

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insurance policies maintained by the Company to enforce or interpret any of the
terms hereof or thereof, Indemnitee shall be entitled to be indemnified for all
Expenses incurred by Indemnitee with respect to such action (including without
limitation attorneys' fees), regardless of whether Indemnitee is ultimately
successful in such action, unless as a part of such action a court having
jurisdiction over such action makes a final judicial determination (as to which
all rights of appeal therefrom have been exhausted or lapsed) that each of the
material assertions made by Indemnitee as a basis for such action was not made
in good faith or was frivolous; provided, however, that until such final
judicial determination is made, Indemnitee shall be entitled under Section 3 to
receive payment of Expense Advances hereunder with respect to such action. In
the event of an action instituted by or in the name of the Company under this
Agreement to enforce or interpret any of the terms of this Agreement, Indemnitee
shall be entitled to be indemnified for all Expenses incurred by Indemnitee in
defense of such action (including without limitation costs and expenses incurred
with respect to Indemnitee's counterclaims and cross-claims made in such
action), unless as a part of such action a court having jurisdiction over such
action makes a final judicial determination (as to which all rights of appeal
therefrom have been exhausted or lapsed) that each of the material defenses
asserted by Indemnitee in such action was made in bad faith or was frivolous;
provided, however, that until such final judicial determination is made,
Indemnitee shall be entitled under Section 3 to receive payment of Expense
Advances hereunder with respect to such action.

     14.  Period of Limitations.  No legal action shall be brought and no cause
          ---------------------
of action shall be asserted by or in the right of the Company against
Indemnitee, Indemnitee's estate, spouse, heirs, executors or personal or legal
representatives after the expiration of two years from the date of accrual of
such cause of action, and any claim or cause of action of the Company shall be
extinguished and deemed released unless asserted by the timely filing of a legal
action within such two year period; provided, however, that if any shorter
period of limitations is otherwise applicable to any such cause of action, such
shorter period shall govern.

     15.  Notice.  All notices, requests, demands and other communications under
          ------
this Agreement shall be in writing and shall be deemed duly given (i) if
delivered by hand and signed for by the party addressed, on the date of such
delivery, or (ii) if mailed by domestic certified or registered mail with
postage prepaid, on the third business day after the date postmarked. Addresses
for notice to either party are as shown on the signature page of this Agreement,
or as subsequently modified by written notice.

     16.  Consent to Jurisdiction.  The Company and Indemnitee each hereby
          -----------------------
irrevocably consent to the jurisdiction of the courts of the State of California
for all purposes in connection with any action or proceeding which arises out of
or relates to this Agreement and agree that any action instituted under this
Agreement shall be commenced, prosecuted and continued only in the state courts
of the State of California, which shall be the exclusive and only proper forum
for adjudicating such a claim.

     17.  Severability.  The provisions of this Agreement shall be severable in
          ------------
the event that any of the provisions hereof (including any provision within a
single section, paragraph or sentence) are held by a court of competent
jurisdiction to be invalid, void or otherwise unenforceable, and the remaining
provisions shall remain enforceable to the fullest extent permitted by law.
Furthermore, to the fullest extent possible, the provisions of this Agreement

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(including without limitation each portion of this Agreement containing any
provision held to be invalid, void or otherwise unenforceable, that is not
itself invalid, void or unenforceable) shall be construed so as to give effect
to the intent manifested by the provision held invalid, illegal or
unenforceable.

     18.  Choice of Law.  This Agreement, and all rights, remedies, liabilities,
          -------------
powers and duties of the parties to this Agreement, shall be governed by and
construed in accordance with the laws of the State of California as applied to
contracts between California residents entered into and to be performed entirely
in the State of California without regard to principles of conflicts of laws.

     19.  Subrogation.  In the event of payment under this Agreement, the
          -----------
Company shall be subrogated to the extent of such payment to all of the rights
of recovery of Indemnitee, who shall execute all documents required and shall do
all acts that may be necessary to secure such rights and to enable the Company
effectively to bring suit to enforce such rights.

     20.  Amendment and Termination.  No amendment, modification, termination or
          -------------------------
cancellation of this Agreement shall be effective unless it is in writing signed
by both the parties hereto.  No waiver of any of the provisions of this
Agreement shall be deemed to be or shall constitute a waiver of any other
provisions hereof (whether or not similar), nor shall such waiver constitute a
continuing waiver.

     21.  Integration and Entire Agreement.  This Agreement sets forth the
          --------------------------------
entire understanding between the parties hereto and supersedes and merges all
previous written and oral negotiations, commitments, understandings and
agreements relating to the subject matter hereof between the parties hereto.

     22.  No Construction as Employment Agreement.  Nothing contained in this
Agreement shall be construed as giving Indemnitee any right to be retained in
the employ of the Company or any of its subsidiaries or affiliated entities.

                  [Remainder of Page Intentionally Left Blank]

                                      -10-
<PAGE>

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

MULTILINK TECHNOLOGY CORPORATION

By:________________________________

Name:______________________________

Title:_____________________________

Address:  300 Atrium Drive
          2/nd/ Floor
          Somerset, New Jersey  08873

                                        AGREED TO AND ACCEPTED

                                        INDEMNITEE:

                                        _______________________________________
                                        (signature)

                                        _______________________________________
                                        Name

                                        _______________________________________
                                        Address

                                      -11-<PAGE>

                                                                    EXHIBIT 10.2

                            1998 STOCK OPTION PLAN

                                      OF

                       MULTILINK TECHNOLOGY CORPORATION

     Section 1.01.  Purpose. The purpose of this 1998 Stock Option Plan of
                    -------
Multilink Technology Corporation (the "Plan") is to promote the growth and
general prosperity of Multilink Technology Corporation, a California corporation
(the "Company"), by permitting the Company to grant options to purchase shares
of the Company's common stock ("Shares"). The Plan is designed to help attract
and retain superior personnel for positions of substantial responsibility with
the Company and to provide directors, officers and key employees with an
additional incentive to contribute to the success of the Company. Options
granted pursuant to the provisions of the Plan may be either "incentive stock
options," within the meaning of Section 422 of the Internal Revenue Code of
1986, as amended (the "Code"), or non-statutory stock options, as determined by
the Plan Administrator and set forth in the stock option agreements. Options
granted under this Plan must be labeled either as an "Incentive Stock Option" or
a "Non-Statutory Stock Option." As used in the Plan, the terms "parent
corporation" and "subsidiary corporation" shall have the meanings set forth in
subsections (e) and (f), respectively, of Section 424 of the Code.

     Section 2.01.  Administration. The Plan will be administered by the Board
                    --------------
of Directors of the Company (the "Board of Directors") or, if the Board of
Directors so determines, by a committee appointed by the Board of Directors from
among its members (such committee administering the Plan being hereinafter
referred to as the "Committee"; and the Board of Directors or the Committee
administering the Plan, as the case may be, being hereinafter referred to as the
"Plan Administrator"). If the Board of Directors designates a Committee to
administer the Plan, the Committee (which may include members of the
compensation committee of the Board of Directors, if any) shall be comprised
solely of not less than two members who shall be (i) "disinterested persons"
within the meaning of Rule 16b-3 (or any successor rule) promulgated under the
Securities Exchange Act of 1934, as amended (the "Exchange Act"), and (ii)
unless otherwise determined by the Board of Directors, "outside directors"
within the meaning of Section 162(m) of the Code.

     Section 2.02. Authority of Plan Administrator. The Plan Administrator is
                   -------------------------------
authorized, subject to the provisions of the Plan, to establish such rules and
regulations as it deems necessary for the proper administration of the Plan and
to make such determinations and interpretations and to take such action in
connection with the Plan and any options granted hereunder as it deems necessary
or advisable. All determinations and interpretations made by the Plan
Administrator shall be binding and conclusive on all participants and their
legal representatives. No member of the Board of the Directors, no member of the
Committee and no employee of the Company shall be liable for any act or failure
to act hereunder, except in circumstances involving his or her bad faith, gross
negligence or willful misconduct, or for any act or failure to act hereunder by
any other member or employee or by any agent to whom duties in connection with
the administration of this Plan have been delegated. The Company shall indemnify
members of the Plan Administrator and any agent of the Plan Administrator who is
an employee of the Company,
<PAGE>

against any and all liabilities or expenses to which they may be subjected by
reason of any act or failure to act with respect to their duties on behalf of
the Plan, except in circumstances involving such person's bad faith, gross
negligence or willful misconduct.

     The Plan Administrator may delegate to one or more of its members, or to
one or more agents, such administrative duties as it may deem advisable, and the
Plan Administrator, or any person to whom it has delegated duties as aforesaid,
may employ one or more persons to render advice with respect to any
responsibility the Plan Administrator or such person may have under the Plan.
The Plan Administrator may employ such legal or other counsel, consultants and
agents as it may deem desirable for the administration of the Plan and may rely
upon any opinion or computation received from any such counsel, consultant or
agent. Expenses incurred by the Plan Administrator in the engagement of such
counsel, consultant or agent shall be paid by the Company, or the subsidiary
whose employees have benefited from the Plan as determined by the Plan
Administrator.

     Section 2.03. Terms, Conditions and Method of Grant. The terms and
                   -------------------------------------
conditions of options granted under the Plan may differ from one another as the
Plan Administrator, in its absolute discretion, shall determine as long as all
options granted under the Plan satisfy the requirements of the Plan. Whenever
the Plan Administrator shall designate an employee or other individual to
receive an option (the "optionee"), any officer of the Company designated by the
Plan Administrator shall forthwith send notice thereof to the optionee, stating
the number of Shares covered by the option, the price per Share and the class of
common stock underlying the option. The date of notice shall be the date of
granting the option to the optionee for all purposes of the Plan. The notice
shall be accompanied by an option agreement (with a copy of the Plan attached)
to be signed by the Company and by the optionee, which option agreement shall be
in the form and shall contain such provisions consistent with the Plan as the
Plan Administrator, acting with the benefit of legal counsel, shall consider
advisable.

     Section 3.01. Maximum Number of Shares Subject to the Plan. Subject to the
                   --------------------------------------------
provisions of Section 13.01(a), the maximum aggregate number of authorized and
unissued Shares that may be optioned and sold under the Plan is Six Thousand
(6,000) Shares. If any of the options granted under the Plan expire or terminate
for any reason before they have been exercised in full, the unpurchased Shares
subject to those expired or terminated options shall again be available for the
purposes of the Plan.

     Section 4.01. Eligibility and Participation. Only full-time, key employees
                   -----------------------------
of the Company or of any subsidiary corporation or any parent corporation shall
be eligible for selection by the Plan Administrator to receive incentive stock
options and full-time, key employees and directors of the Company or of any
subsidiary corporation or any parent corporation shall be eligible to receive
non-statutory stock options. For purposes of this Plan, the phrase "key
employees" shall include officers, department heads, division managers, other
employees having supervisory responsibilities, and those other employees as the
Plan Administrator may specifically designate from time to time.

     Section 5.01. Effective Date and Term of Plan. The Plan shall become
                   -------------------------------
effective upon its adoption by the Board of Directors of the Company subject to
the receipt of the approval of the

                                      -2-
<PAGE>

Plan required by Section 15.01. The Plan shall remain in effect for a term of 10
years, unless sooner terminated under Section 14.01.

     Section 5.02. Duration of Options. Each option and all rights thereunder
                   -------------------
granted pursuant to the terms of the Plan shall expire on the date determined by
the Plan Administrator, but in no event shall any option granted under the Plan
expire later than the (10) years from the date on which the option is granted.
In addition, each option shall be subject to early termination as provided in
the Plan. However, any non-statutory stock option granted to a non-employee
director of the Company or any subsidiary corporation or parent corporation
shall expire five (5) years after the date of grant of such option.

     Section 5.03. Purchase Price. The purchase price for Shares acquired
                   --------------
pursuant to the exercise (in whole or in part) of any incentive stock option
granted under this Plan shall be not less than 100% of the fair market value of
the Shares at the time of the grant. Fair market value shall be determined by
the Plan Administrator on the basis of those factors they deem in good faith to
be appropriate; provided, however, that if at the time the determination is made
the Shares are admitted to trading on a national securities exchange, the fair
market value of the Shares shall be not less than the higher of (a) the mean
between the high bid and asked prices reported for the Shares on that exchange
on the date or most recent trading day preceding the date on which the option is
granted, or (b) the last reported sale price reported for the Shares on that
exchange on the date or most recent trading day preceding the date on which the
option is granted. The phrase "national securities exchange" shall include the
National Association of Securities Dealers Automated Quotation System and the
over-the-counter market.

     Section 5.04. Term and Purchase Price of Incentive Stock Option Granted to
                   ------------------------------------------------------------
More Than 10% Shareholder. Notwithstanding anything to the contrary in Sections
-------------------------
5.02 and 5.03, if an incentive stock option is to be granted to an employee of
the Company or any subsidiary corporation or parent corporation who at the time
the option is granted owns (or under Section 424(d) of the Code is deemed to
own) more than 10% of the total combined voting power of all classes of stock of
the Company or of any parent corporation or subsidiary corporation, that option
by its terms shall not be exercisable after the expiration of five (5) years
after the date that option is granted, and the purchase price of the Shares
acquired pursuant to the exercise (in whole or in part) of that option shall be
at least 110% of the fair market value (as determined under Section 5.03 by the
Plan Administrator) of the Shares subject to the option at the time the option
is granted.

     Section 5.05. Maximum Amount of Options. The maximum aggregate fair market
                   -------------------------
value (determined as of the time the option is granted) of the Shares with
respect to which incentive stock options are exercisable for the first time by
any optionee in any calendar year under all stock option plans of the Company,
or of any parent corporation or subsidiary corporation of the Company, shall not
exceed $100,000. To the extent that the aggregate fair market value (determined
as of the time the option is granted) of the Shares with respect to which
incentive stock options are exercisable for the first time by any optionee in
any calendar year under all stock option plans of the Company or any parent
corporation or subsidiary corporation of the Company exceeds $100,000, such
options shall be treated as non-statutory options.

                                      -3-
<PAGE>

     Section 6.01. Exercise of Options. Subject to Section 6.03. each option
                   -------------------
shall be exercisable in one or more installments prior to its expiration or
termination at such times as determined by the Plan Administrator at the time of
grant; provided, however, that no option may be exercisable by a non-employee
director until six (6) months after the date of the grant. The right to exercise
may be cumulative as determined by the Plan Administrator. No option may be
exercised for a fraction of a Share or other than on a business day of the
Company. The full purchase price of any Shares purchased shall be paid (i) in
cash or by certified or cashier's check payable to the order of the Company, or
by a combination of cash or certified or cashier's check, at the time of
exercise of the option, or (ii) at the discretion of the Plan Administrator and
as permitted by law, by delivering the Company's Shares already owned by the
optionee or a combination of Shares and cash or certified or cashiers checks.

     Section 6.02. Written Notice Required. Any option granted pursuant to the
                   -----------------------
terms of the Plan shall be considered exercised when written notice of that
exercise, together with the investment representation described in Section 7.01,
has been given to the Company at its principal executive office by the person
entitled to exercise the option and full payment for the Shares with respect to
which the option is exercised has been received by the Company.

     Section 6.03. Vesting of Non-Statutory Stock Options. Non-statutory stock
                   --------------------------------------
options granted to non-employee directors of the Company or any subsidiary
corporation or parent corporation will become exercisable as follows: 100% three
(3) months after the date of the grant.

     Section 7.01. Compliance With State and Federal Laws: Delivery of Shares.
                   ----------------------------------------------------------
No Shares shall be issued with respect to any option granted under the Plan
unless the exercise of that option and the issuance and delivery of the Shares
pursuant to that exercise shall comply with all relevant provisions of state and
federal laws, rules, and regulations, and the requirements of any stock exchange
upon which the Shares may then be listed, and shall be further subject to the
approval of counsel for the Company with respect to that compliance. If any law,
or any regulation of the Securities and Exchange Commission, or of any other
body having jurisdiction, shall require the Company or the optionee to take any
action in connection with the Shares specified in the optionee's notice, then
the date for the delivery of the Shares shall be postponed until the completion
of the necessary action. The Plan Administrator shall require (to the extent
required by or advisable under applicable laws, rules, and regulations) an
optionee to furnish evidence satisfactory to the Company (including a written
and signed representation letter and a consent to be bound by any transfer
restrictions imposed by laws, legend condition, or otherwise) upon exercise of
the option that the Shares to be acquired are being purchased only for
investment and without any present intention to sell or distribute the Shares in
violation of any law, rule, or regulation. Further, each optionee shall consent
to the imposition of a legend on the stock certificate evidencing the Shares
subject to his or her option restricting their transferability as required by or
advisable under applicable laws, rules and regulations.

     Section 8.01. Employment of Optionee. Nothing in the Plan or in any option
                   ----------------------
granted hereunder shall confer upon any optionee (i) any right to continued
employment by the Company or any parent corporation or subsidiary corporation,
or limit in any way the right of the employer at any time to terminate or alter
the terms of that employment or (ii) any right to sue the Company, or any parent
corporation or subsidiary corporation for any adverse tax consequences

                                      -4-
<PAGE>

in connection with the grant or exercise of any option or the disposition of any
Shares acquired pursuant to this Plan.

     Section 9.01.  Option Rights Upon Termination of Employment. If an optionee
                    --------------------------------------------
ceases to be an employee or a director of the Company or any subsidiary
corporation or parent corporation for any reason other than death or permanent
and total disability (within the meaning of Section 22(e)(3) of the Code), the
optionee's option shall immediately terminate; provided, however, that the Plan
Administrator, in its absolute discretion, may provide at the time of the grant
of an option that the option may be exercised (to the extent it remains
unexercised on the date of termination) at any time within a period of up to
three months following the date of termination, unless either the option or the
Plan otherwise provides for earlier termination but only to the extent that the
optionee is entitled to exercise the option at the date of such termination. The
transfer of an employee from the employ of the Company to any subsidiary
corporation or parent corporation, or vice versa, or from any subsidiary
corporation or parent corporation, to any other subsidiary corporation or parent
corporation shall not be deemed to constitute a cessation of employment for
purposes of this Plan.

     Section 10.01. Option Rights Upon Death or Disability. Except as otherwise
                    --------------------------------------
limited by the Plan Administrator at the time of the grant of an option, if an
optionee dies or becomes permanently and totally disabled within the meaning of
Section 22(e)(3) of the Code while an employee or a director of the Company or
any subsidiary corporation or parent corporation, or dies within three months
after ceasing to be an employee or director thereof (provided that the optionee
was entitled to exercise the option at the time of ceasing to be an employee or
director), the optionee's option shall expire one year after the date of death
or the date of permanent and total disability, unless either the option or the
Plan otherwise provides for earlier termination. During this one year (or
shorter) period, the option may be exercised, to the extent that it remains
unexercised on the date of death or on the date of permanent and total
disability, by the optionee, if living, or by the person or persons to whom the
optionee's rights under the option shall pass by will or by the laws of descent
and distribution, but only to the extent that the optionee is entitled to
exercise the option at the date of death or date of permanent and total
disability, as the case may be.

     Section 11.01. No Privileges of Ownership. Notwithstanding the exercise of
                    --------------------------
any option granted pursuant to the Plan, no optionee shall have any of the
rights or privileges of a shareholder of the Company in respect of any Shares
issuable upon the exercise of the option until the optionee becomes a
shareholder of record.

     Section 12.01. Options Not Transferable. Options granted pursuant to the
                    ------------------------
terms of the Plan, may not be sold, pledged, assigned, or transferred in any
manner, other than by will or the laws of descent and distribution, and may be
exercised during the lifetime of an optionee only by that optionee.

     Section 13.01. Adjustment to Number and Purchase Price; Acceleration of
                    --------------------------------------------------------
Right to Exercise Option; Cancellation of Option. All options granted pursuant
------------------------------------------------
to the Plan shall be adjusted, modified, or canceled in the manner prescribed by
this section.

                                      -5-
<PAGE>

     (a)  If the outstanding Shares of the Company are increased, decreased,
changed into, or exchanged for a different number or kind or Shares or
securities through merger, consolidation, combination, exchange of Shares, or
other reorganization, recapitalization, reclassification, stock dividend, stock
split, or reverse stock split, an appropriate and proportionate adjustment shall
be made in the maximum number and kind of Shares as to which options may be
granted under the Plan. A corresponding adjustment changing the number or kind
of Shares allocated to unexercised options or portions thereof that were granted
prior to any such change shall likewise be made. Any adjustments made pursuant
to this Section 13.01 in outstanding options shall be made without change in the
aggregate purchase price applicable to the unexercised portion of the option,
but with a corresponding adjustment in the price for each Share or other unit of
any security covered by the option. With respect to incentive stock options, the
adjustments described in this section 13.01(a) shall be made in accordance with
Section 424 of the Code.

     (b)  Upon the effective date of the dissolution or liquidation of the
Company, or of a reorganization, merger, or consolidation of the Company with
one or more other corporations in which the Company is not the surviving
corporation, or of the transfer of substantially all of the assets or Shares of
the Company to another corporation, the Plan and any option theretofore granted
hereunder shall terminate. In the event of such dissolution, liquidation,
reorganization, merger, consolidation, transfer of assets, or transfer of stock,
at the discretion of the Plan Administrator, each optionee (or that person's
estate or a person who acquired the right to exercise the option from the
optionee by bequest or inheritance) shall be entitled, prior to the effective
date of the consummation of any such transaction, to purchase, in whole or in
part, the full number of Shares under the option or options granted to the
optionee that the optionee would otherwise have been entitled to purchase during
the remaining term of the option and without regard to any otherwise applicable
restrictions set forth in the option delaying the immediate exercise of the
option. To the extent that any such exercise relates to stock that is not
otherwise available for purchase through the exercise of the option by the
optionee at that time, the exercise pursuant to this Section 13.01(b) shall be
contingent upon the consummation of that dissolution, liquidation,
reorganization, merger, consolidation, sale, or transfer of assets or stock.

     (c)  Notwithstanding the foregoing, in the event of a complete liquidation
of a subsidiary corporation or parent corporation, or in the event that such
corporation ceases to be a subsidiary corporation or parent corporation, any
unexercised options theretofore granted to an employee of such subsidiary
corporation or parent corporation, respectively, shall be deemed canceled unless
the employee shall become employed by the Company or by any other subsidiary
corporation or parent corporation, respectively, on the occurrence of any such
event

     Section 14.01. Termination and Amendment of Plan. The Plan shall terminate
                    ---------------------------------
ten (10) years from the effective date of the Plan (as determined under Section
5.01), and no options shall be granted under the Plan after that date; provided,
however, that termination of the Plan shall not terminate any option granted
prior thereto, and options granted prior to termination of the Plan and existing
at the time of termination of the Plan shall continue to be subject to all the
terms and conditions of the Plan as if the Plan had not terminated. Subject to
the limitation contained in Section 14.02, the Plan Administrator may at any
time amend or revise the terms of the Plan (including the form and substance of
the option agreements to be used hereunder), provided that no amendment or
revision shall (a) increase the maximum aggregate number of

                                      -6-
<PAGE>

Shares provided for in Section 3.01 that may be sold pursuant to options granted
under the Plan except as required under the provisions of Section 13.01(a), (b)
permit the granting of an option to anyone other than as provided in Section
4.01, (c) increase the maximum term provided for in Sections 5.02 and 5.04 of
any option. or (d) change the minimum purchase price for the Shares under
Sections 5.03 and 5.04, unless approved by the written consent of the
shareholders, or by the affirmative vote, in person or by proxy, of a majority
of the outstanding voting stock of the Company at a duly held shareholders'
meeting.

     Section 14.02. Prior Rights and Obligations. No amendment, suspension, or
                    ----------------------------
or termination of the Plan shall, without the consent of the optionee, alter or
impair any of that optionee's right or obligations under any option granted
under the Plan prior to that amendment, suspension, or termination.

     Section 15.01. Approval of Shareholders. Within 12 months after its
                    ------------------------
adoption by the Board of Directors of the Company, the Plan must be approved by
the unanimous written consent of the shareholders, or by the affirmative vote,
in person or by proxy, of a majority of the outstanding voting stock of the
Company at a duly held shareholders' meeting. Options may be granted under the
Plan prior to obtaining shareholder approval, but those options shall be
contingent upon shareholder approval being obtained and may not be exercised
prior to the receipt of shareholder approval.

     Section 16.01. Reservation of Shares. During the term of the Plan, the
                    ---------------------
Company will at all times reserve and keep available such number of Shares as
shall be sufficient to satisfy the requirements of the Plan. In addition, the
Company will from time to time, as is necessary to accomplish the purposes of
the Plan, seek to obtain from any regulatory agency having jurisdiction any
requisite authority in order to grant options under the Plan and to issue and
sell Shares hereunder.

     Section 17.01. Tax Withholding. The Company may make such provisions it may
                    ---------------
deem appropriate for the withholding of any state or federal taxes which the
Company determines is advisable to withhold in connection with any option or any
other right, payment or settlement made under this Plan. The exercise of the
option shall not be effective unless such withholding shall have been effected
or obtained in a manner acceptable to the Company, including, but not limited
to, requiring the optionee to remit to the Company an amount sufficient to
satisfy any federal, state and/or local tax withholding requirements.

     Section 18.01. Sections-Headings. The headings of the sections of the Plan
                    -----------------
are for convenience only and shall not be considered or referred to in resolving
questions of interpretation. References to "Section" that are not followed by a
section number and the phrase "of the Code" are references to sections of the
Plan.

     Section 19.01. Governing Law. The Plan shall be governed by and construed
                    -------------
and interpreted in accordance with the internal laws of the State of California,
except to the extent preempted by federal law, which shall govern to such
extent.

     Section 20.01. Invalid Provision. In the event that any provision of this
                    -----------------
Plan is found to be invalid or otherwise unenforceable under any applicable
law, such invalidity or

                                      -7-
<PAGE>

unenforceability shall not be construed as rendering any other provisions
contained herein invalid or unenforceable, and all such other provisions shall
be given full force and effect to the same extent as though the invalid or
unenforceable provision was not contained herein.

     Section 21.01. Adoption. The Plan was adopted by a resolution duly adopted
                    --------
by the Board of Directors of the Company on June 5, 1998.

                                      -8-
<PAGE>

                    AMENDMENT TO THE 1998 STOCK OPTION PLAN
                    ---------------------------------------

     1.   The first sentence of Section 1.01 of the Plan is hereby deleted in
its entirety and replaced with the following:

     "The purpose of this 1998 Stock Option Plan of Multilink
     Technology Corporation (the `Plan') is to promote the growth and
     general prosperity of Multilink Technology Corporation, a
     California corporation (the `Company'), by permitting the Company
     to grant options to purchase shares of the Company's Class A
     Common Stock (`Shares')."

     2.   The second sentence of Section 2.03 of the Plan is hereby deleted in
its entirety and replaced with the following:

     "Whenever the Plan Administrator shall designate an employee or
     other individual to receive an option (the `optionee'), any
     officer of the Company designated by the Plan Administrator shall
     forthwith send notice thereof to the optionee, stating the number
     of Shares covered by the option and the price per Share."

     3.   The first sentence of Section 3.01 of the Plan is hereby deleted in
its entirety and replaced with the following:

     "Subject to the provisions of Section 13.01(a), the maximum
     aggregate number of authorized and unissued Shares that may be
     optioned and sold under the Plan is Two Million Four Hundred
     Thousand (2,400,000) Shares."

     4.   The second sentence of Section 13.01(b) of the Plan is hereby deleted
in its entirety and replaced with the following:

     "In the event of such dissolution, liquidation, reorganization,
     merger, consolidation, transfer of assets, or transfer of stock,
     each optionee (or that person's estate or a person who acquired
     the right to exercise the option from the optionee by bequest or
     inheritance) shall be entitled, prior to the effective date of
     the consummation of any such transaction, to purchase, in whole
     or in part, the full number of Shares under the option or options
     granted to the optionee that the optionee would otherwise have
     been entitled to purchase during the remaining term of the option
     and without regard to any otherwise applicable restrictions set
     forth in the option delaying the immediate exercise of the
     option."
<PAGE>

                 AMENDMENT NO. 2 TO THE 1998 STOCK OPTION PLAN
                 ---------------------------------------------

     Section 12.01 of the Plan is hereby deleted in its entirety and replaced
with the following:

     "Limited Transferability of Options. During the lifetime of an
      ----------------------------------
     optionee, incentive stock options shall be exercisable only by
     the optionee and shall not be assignable or transferable other
     than by will or by the laws of descent and distribution following
     the optionee's death. Non-statutory stock options shall be
     subject to the same restrictions, except that a non-statutory
     stock option may, to the extent permitted by the Plan
     Administrator, be assigned in whole or in part during an
     optionee's lifetime to one or more members of the optionee's
     immediate family or to a trust established exclusively for one or
     more such family members. The terms applicable to the assigned
     portion shall be the same as those in effect for the option
     immediately prior to such assignment and shall be set forth in
     such documents issued to the assignee as the Plan Administrator
     may deem appropriate."

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