Document:

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                                                                 EXHIBIT 10.6(b)

                        2001 INCENTIVE COMPENSATION PLAN
                             SYNAPTICS INCORPORATED
                        INCENTIVE STOCK OPTION AGREEMENT

         1. Grant of Option. SYNAPTICS INCORPORATED (the "Company") hereby
grants, as of the date of grant (the "Date of Grant") set forth in the attached
Notice of Grant of Stock Options attached hereto and made a part hereof, to the
person whose name is set forth in the Notice of Grant of Stock Options (the
"Optionee") an option (the "Option") to purchase the total number of shares of
the Company's Common Stock (the "Shares") set forth in the Notice of Grant of
Stock Options, at the exercise price per share set forth in the Notice of Grant
of Stock Options. The Option shall be subject to the terms and conditions set
forth herein. The Option was issued pursuant to the Company's 2001 Incentive
Compensation Plan (the "Plan"), which is incorporated herein for all purposes.
The Option is an Incentive Stock Option, and not a nonqualified stock option.
The Optionee hereby acknowledges receipt of a copy of the Plan and agrees to be
bound by all of the terms and conditions hereof and thereof and all applicable
laws and regulations.

         2. Definitions. Unless otherwise provided herein, terms used herein
that are defined in the Plan and not defined herein shall have the meanings
attributed thereto in the Plan.

         3. Exercise Schedule. Except as otherwise provided in Sections 6 or 10
of this Option Agreement, or in the Plan, the Option is exercisable in
installments as provided in the Notice of Grant of Stock Options, which shall be
cumulative. To the extent that the Option has become exercisable with respect to
a percentage of Shares as provided in the Notice of Grant of Stock Options, the
Option may thereafter be exercised by the Optionee, in whole or in part, at any
time or from time to time prior to the expiration of the Option as provided
herein. The Notice of Grant of Stock Options table indicates each date (the
"Vesting Date") upon which the Optionee shall be entitled to exercise the Option
with respect to the number of Shares granted as indicated beside the date,
provided that the Continuous Service of the Optionee continues through and on
the applicable Vesting Date. Except as otherwise specifically provided herein,
there shall be no proportionate or partial vesting in the periods prior to each
Vesting Date, and all vesting shall occur only on the appropriate Vesting Date.
Upon the termination of an Optionee's Continuous Service, any unvested portion
of the Option shall terminate and be null and void.

         4. Method of Exercise. The vested portion of this Option shall be
exercisable in whole or in part in accordance with the exercise schedule set
forth in the Notice of Grant of Stock Options by written notice, which shall
state the election to exercise the Option, the number of Shares in respect of
which the Option is being exercised, and such other representations and
agreements as to the holder's investment intent with respect to such Shares as
may be required by the Company pursuant to the provisions of the Plan. Such
written notice shall be signed by the Optionee and shall be delivered in person
or by certified mail to the Secretary of the Company. The written notice shall
be accompanied by payment of the exercise price. This Option shall be deemed to
be exercised after both (a) receipt by the Company of such written notice
accompanied by the exercise price and (b) arrangements that are satisfactory to
the Committee or
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the Board in its sole discretion have been made for Optionee's payment to the
Company of the amount, if any, that is necessary to be withheld in accordance
with applicable Federal or state withholding requirements. No Shares will be
issued pursuant to the Option unless and until such issuance and such exercise
shall comply with all relevant provisions of applicable law, including the
requirements of any stock exchange upon which the Shares then may be traded.

         5. Method of Payment. Payment of the exercise price shall be by any of
the following, or a combination thereof, at the election of the Optionee: (a)
cash; (b) check; or (c) such other consideration or in such other manner as may
be determined by the Board or the Committee in its absolute discretion.

         6. Termination of Option.

                  (a) Any unexercised portion of the Option shall automatically
and without notice terminate and become null and void at the time of the
earliest to occur of the following:

                           (i) three months after the date on which the
Optionee's Continuous Service is terminated other than by reason of (A) Cause,
(B) a mental or physical disability (within the meaning of Internal Revenue Code
Section 22(e)) of the Optionee as determined by a medical doctor satisfactory to
the Committee or the Board, or (C) the death of the Optionee;

                           (ii) immediately upon the termination of the
Optionee's Continuous Service for Cause;

                           (iii) twelve months after the date on which the
Optionee's Continuous Service is terminated by reason of a mental or physical
disability (within the meaning of Section 22(e) of the Code) as determined by a
medical doctor satisfactory to the Committee or the Board;

                           (iv) (A) twelve months after the date of termination
of the Optionee's Continuous Service by reason of the death of the Optionee, or,
if later, (B) three months after the date on which the Optionee shall die if
such death shall occur during the one year period specified in Subsection
6(a)(iii) hereof; or

                           (v) the tenth anniversary of the date as of which the
Option is granted.

                  (b) To the extent not previously exercised, (i) the Option
shall terminate immediately in the event of (1) the liquidation or dissolution
of the Company, or (2) any reorganization, merger, consolidation or other form
of corporate transaction in which the Company does not survive or the shares of
Stock are converted into or exchanged for securities issued by another entity,
unless the successor or acquiring entity, or an affiliate of such successor or
acquiring entity, assumes the Option or substitutes an equivalent option or
right pursuant to Section 10(c) of the Plan, and (ii) the Committee or the Board
in its sole discretion may by written notice ("cancellation notice") cancel,
effective upon the consummation of any corporate transaction described in
Subsection 9(b)(i) of the Plan in which the Company does survive, the Option (or
portion thereof) that remains unexercised on such date. The Committee or the
Board shall give written notice of any proposed transaction referred to in this
Section 6(b) a reasonable

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period of time prior to the closing date for such transaction (which notice may
be given either before or after approval of such transaction), in order that the
Optionee may have a reasonable period of time prior to the closing date of such
transaction within which to exercise the Option if and to the extent that it
then is exercisable (including any portion of the Option that may become
exercisable upon the closing date of such transaction). The Optionee may
condition his exercise of the Option upon the consummation of a transaction
referred to in this Section 6(b).

         7. Transferability. The Option is not transferable otherwise than by
will or the laws of descent and distribution, and during the lifetime of the
Optionee the Option shall be exercisable only by the Optionee. The terms of this
Option shall be binding upon the executors, administrators, heirs, successors
and assigns of the Optionee.

         8. No Rights of Stockholders. Neither the Optionee nor any personal
representative (or beneficiary) shall be, or shall have any of the rights and
privileges of, a stockholder of the Company with respect to any shares of Stock
purchasable or issuable upon the exercise of the Option, in whole or in part,
prior to the date of exercise of the Option.

         9. Market Stand-Off Agreement. At the request of the Company or the
underwriters managing any underwritten offering of the Company's securities, the
Optionee agrees not to sell, make any short sale of, loan, grant any option for
the purchase of, or otherwise dispose of any shares of Stock (other than those
included in the registration) acquired pursuant to the exercise of the Option,
without the prior written consent of the Company or such underwriters, as the
case may be, for such period of time (not to exceed 180 days) from the effective
date of such registration as may be requested by the Company or such managing
underwriters.

         10. Acceleration of Exercisability of Option. This Option shall become
immediately fully exercisable in the event that, prior to the termination of the
Option pursuant to Section 6 hereof, (a) there is a "Change in Control", as
defined in Section 9(b) of the Plan, that occurs while the Optionee is employed
by the Company or any of its subsidiaries, (b) the Committee or the Board
exercises its discretion to provide a cancellation notice with respect to the
Option pursuant to Section 6(b)(ii) hereof, or (c) the Option is terminated
pursuant to Section 6(b)(i) hereof.

         11. No Right to Continued Employment. Optionee acknowledges and agrees
that the vesting of shares pursuant to the Option granted is earned only by
continuing employment or consultancy at the will of the Company (not through the
act of being hired, being granted this Option or acquiring shares hereunder).
Optionee further acknowledges and agrees that nothing in this Option Agreement,
nor in the Plan, shall confer upon Optionee any right with respect to
continuation of employment or consultancy by the Company, nor shall it interfere
in any way with Optionee's right or the Company's right to terminate Optionee's
employment or consultancy at any time, with or without Cause.

         12. Law Governing. This Option Agreement shall be governed in
accordance with and governed by the internal laws of the State of California.

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         13. Incentive Stock Option Treatment. The terms of this Option shall be
interpreted in a manner consistent with the intent of the Company and the
Optionee that the Option qualify as an Incentive Stock Option under Section 422
of the Code. If any provision of the Plan or this Option Agreement shall be
impermissible in order for the Option to qualify as an Incentive Stock Option,
then the Option shall be construed and enforced as if such provision had never
been included in the Plan or the Option. If and to the extent that the number of
Options granted pursuant to this Option Agreement exceeds the limitations
contained in Section 4(b) of the Plan or the value of Shares with respect to
which this Option may qualify as an Incentive Stock Option, this Option shall be
a Non-Qualified Stock Option.

         14. Interpretation / Provisions of Plan Control. This Option Agreement
is subject to all the terms, conditions and provisions of the Plan, including,
without limitation, the amendment provisions thereof, and to such rules,
regulations and interpretations relating to the Plan adopted by the Committee or
the Board as may be in effect from time to time. If and to the extent that this
Option Agreement conflicts or is inconsistent with the terms, conditions and
provisions of the Plan, the Plan shall control, and this Option Agreement shall
be deemed to be modified accordingly. The Optionee accepts the Option subject to
all the terms and provisions of the Plan and this Option Agreement. The
undersigned Optionee hereby accepts as binding, conclusive and final all
decisions or interpretations of the Committee or the Board upon any questions
arising under the Plan and this Option Agreement.

         15. Notices. Any notice under this Option Agreement shall be in writing
and shall be deemed to have been duly given when delivered personally or when
deposited in the United States mail, registered, postage prepaid, and addressed,
in the case of the Company, to the Company's Secretary at:

                                 Synaptics Incorporated
                                 2381 Bering Drive
                                 San Jose, California  95131

or if the Company should move its principal office, to such principal office,
and, in the case of the Optionee, to the Optionee's last permanent address as
shown on the Company's records, subject to the right of either party to
designate some other address at any time hereafter in a notice satisfying the
requirements of this Section.

         16. Tax Consequences. Set forth below is a brief summary as of the date
of this Option of some of the federal tax consequences of exercise of this
Option and disposition of the Shares. THIS SUMMARY IS NECESSARILY INCOMPLETE,
AND THE TAX LAWS AND REGULATIONS ARE SUBJECT TO CHANGE. OPTIONEE SHOULD CONSULT
A TAX ADVISER BEFORE EXERCISING THIS OPTION OR DISPOSING OF THE SHARES.

                  (a) Exercise of Option. There will be no regular federal
income tax liability upon the exercise of the Option, although the excess, if
any, of the fair market value of the Shares on the date of exercise over the
exercise price will be treated as an adjustment to the

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alternative minimum tax for federal tax purposes and may subject the Optionee to
the alternative minimum tax in the year of exercise.

                  (b) Disposition of Shares. If Shares transferred pursuant to
the Option are held for at least one year after exercise and are disposed of at
least two years after the date of grant, any gain realized on disposition of the
Shares will also be treated as long-term capital gain for federal income tax
purposes. If Shares purchased under an Option are disposed of within such
one-year period or within two years after the Date of Grant, any gain realized
on such disposition will be treated as compensation income (taxable at ordinary
income rates) to the extent of the difference between the exercise price and the
lesser of (1) the fair market value of the Shares on the date of exercise, or
(2) the sale price of the Shares.

                  (c) Notice of Disqualifying Disposition of Option Shares. If
Optionee sells or otherwise disposes of any of the Shares acquired pursuant to
the Option on or before the later of (1) the date two years after the date of
grant, (2) the date one year after the date of exercise, the Optionee shall
immediately notify the Company in writing of such disposition. Optionee agrees
that Optionee may be subject to the income tax withholding by the Company on the
compensation income recognized by the Optionee from the early disposition by
payment in cash or out of the current earnings paid to the Optionee.

         If and to the extent that the number of Options granted hereunder
exceeds the limitations contained in Section 4(b) of the Plan or the value of
Shares with respect to which this Option may qualify as an Incentive Stock
Option, this Option shall be a Non-Qualified Stock Option. The holder of a
Non-Qualified Stock Option will be treated as having received compensation
income (taxable at ordinary income tax rates) at the time the Option is
exercised equal to the excess, if any, of the fair market value of the shares of
Stock on the date of exercise over the exercise price. If the shares of Stock
transferred pursuant to the Non-Qualified Stock Option are held for at least one
year after the Option is exercised, any gain realized on disposition of the
shares of Stock will be treated as long-term capital gain for federal income tax
purposes.

         The foregoing discussion assumes that, and only is applicable if, the
fair market value of the Shares as of the date on which the Option is granted is
not less than the exercise price. The Company believes that it has made a good
faith effort to determine the fair market value of the Shares and does not
believe that the exercise price is less than the fair market value of the Shares
on the Date of Grant. No assurances can be given, however, that the Internal
Revenue Service would not take a contrary position, or that the Internal Revenue
Service would not treat the Option as an Incentive Stock Option for some other
reason. If the exercise price is determined to be less than the fair market
value of a Share on the Date of Grant, then the Option may be taxable as a
Non-Qualified Stock Option. It is also possible that if the fair market value is
determined to be significantly greater than the exercise price, the Internal
Revenue Service may take the position that the Option is not in effect a stock
option but should be treated as a restricted stock for tax purposes. The
Optionee should consult with his or her own tax advisors as to whether any
action should be taken to minimize these risks.

         17. Execution. This Option Agreement is executed by the parties hereto
on the Notice of Grant of Stock Options, which is attached hereto and made a
part hereof.

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                        2001 INCENTIVE COMPENSATION PLAN
                             SYNAPTICS INCORPORATED
                      NON-QUALIFIED STOCK OPTION AGREEMENT

         1. Grant of Option. SYNAPTICS INCORPORATED (the "Company") hereby
grants, as of the date of grant ("Date of Grant") set forth in the attached
Notice of Grant of Stock Options attached hereto and made a part hereof, to the
person whose name is set forth in the Notice of Grant of Stock Optons (the
"Optionee") an option (the "Option") to purchase the total number of shares of
the Company's Common Stock (the "Shares") set forth in the Notice of Grant of
Stock Options, at the exercise price per share set forth in the Notice of Grant
of Stock Options. The Option shall be subject to the terms and conditions set
forth herein. The Option was issued pursuant to the Company's 2001 Incentive
Compensation Plan (the "Plan"), which is incorporated herein for all purposes.
The Option is a nonqualified stock option, and not an Incentive Stock Option.
The Optionee hereby acknowledges receipt of a copy of the Plan and agrees to be
bound by all of the terms and conditions hereof and thereof and all applicable
laws and regulations.

         2. Definitions. Unless otherwise provided herein, terms used herein
that are defined in the Plan and not defined herein shall have the meanings
attributed thereto in the Plan.

         3. Exercise Schedule. Except as otherwise provided in Sections 6 or 8
of this Option Agreement, or in the Plan, the Option is exercisable in
installments as provided in the Notice of Grant of Stock Options, which shall be
cumulative. To the extent that the Option has become exercisable with respect to
a percentage of Shares as provided in the Notice of Grant of Stock Options, the
Option may thereafter be exercised by the Optionee, in whole or in part, at any
time or from time to time prior to the expiration of the Option as provided
herein. The Notice of Grant of Stock Options table indicates each date (the
"Vesting Date") upon which the Optionee shall be entitled to exercise the Option
with respect to the number of Shares granted as indicated beside the date,
provided that the Continuous Service of the Optionee continues through and on
the applicable Vesting Date. Except as otherwise specifically provided herein,
there shall be no proportionate or partial vesting in the periods prior to each
Vesting Date, and all vesting shall occur only on the appropriate Vesting Date.
Upon the termination of an Optionee's Continuous Service, any unvested portion
of the Option shall terminate and be null and void.

         4. Method of Exercise. The vested portion of this Option shall be
exercisable in whole or in part in accordance with the exercise schedule set
forth in the Notice of Grant of Stock Options by written notice, which shall
state the election to exercise the Option, the number of Shares in respect of
which the Option is being exercised, and such other representations and
agreements as to the holder's investment intent with respect to such Shares as
may be required by the Company pursuant to the provisions of the Plan. Such
written notice shall be signed by the Optionee and shall be delivered in person
or by certified mail to the Secretary of the Company. The written notice shall
be accompanied by payment of the exercise price. This Option shall be deemed to
be exercised after both (a) receipt by the Company of such written notice
accompanied by the exercise price and (b) arrangements that are satisfactory to
the Committee or the Board in its sole discretion have been made for Optionee's
payment to the Company of the
<PAGE>
amount that is necessary to be withheld in accordance with applicable Federal or
state withholding requirements. No Shares will be issued pursuant to the Option
unless and until such issuance and such exercise shall comply with all relevant
provisions of applicable law, including the requirements of any stock exchange
upon which the Shares then may be traded.

         5. Method of Payment. Payment of the exercise price shall be by any of
the following, or a combination thereof, at the election of the Optionee: (a)
cash; (b) check; or (c) such other consideration or in such other manner as may
be determined by the Board or the Committee in its absolute discretion.

         6. Termination of Option.

                  (a) Any unexercised portion of the Option shall automatically
and without notice terminate and become null and void at the time of the
earliest to occur of:

                           (i) three months after the date on which the
Optionee's Continuous Service is terminated other than by reason of (A) Cause,
(B) a mental or physical disability (within the meaning of Internal Revenue Code
Section 22(e)) of the Optionee as determined by a medical doctor satisfactory to
the Committee or the Board, or (C) the death of the Optionee;

                           (ii) immediately upon the termination of the
Optionee's Continuous Service for Cause;

                           (iii) twelve months after the date on which the
Optionee's Continuous Service is terminated by reason of a mental or physical
disability (within the meaning of Section 22(e) of the Code) as determined by a
medical doctor satisfactory to the Committee or the Board;

                           (iv) (A) twelve months after the date of termination
of the Optionee's Continuous Service by reason of the death of the Optionee, or
, if later, (B) three months after the date on which the Optionee shall die if
such death shall occur during the one year period specified in Subsection
6(a)(iii) hereof; or

                           (v) the tenth anniversary of the date as of which the
Option is granted.

                  (b) To the extent not previously exercised, (i) the Option
shall terminate immediately in the event of (1) the liquidation or dissolution
of the Company, or (2) any reorganization, merger, consolidation or other form
of corporate transaction in which the Company does not survive or the shares of
Stock are converted into or exchanged for securities issued by another entity,
unless the successor or acquiring entity, or an affiliate of such successor or
acquiring entity, assumes the Option or substitutes an equivalent option or
right pursuant to Section 10(c) of the Plan, and (ii) the Committee or the Board
in its sole discretion may by written notice ("cancellation notice") cancel,
effective upon the consummation of any corporate transaction described in
Subsection 9(b)(i) of the Plan in which the Company does survive, the Option (or
portion thereof) that remains unexercised on such date. The Committee or the
Board shall give written notice of any proposed transaction referred to in this
Section 6(b) a reasonable period of time prior to the closing date for such
transaction (which notice may be given either before or after approval of such
transaction), in order that the Optionee may have a reasonable

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period of time prior to the closing date of such transaction within which to
exercise the Option if and to the extent that it then is exercisable (including
any portion of the Option that may become exercisable upon the closing date of
such transaction). The Optionee may condition his exercise of the Option upon
the consummation of a transaction referred to in this Section 6(b).

         7. Transferability

                  (a) General. Except as provided herein, a Participant may not
assign, sell, transfer, or otherwise encumber or subject to any lien any Award
or other right or interest granted under this Plan, in whole or in part,
including any Award or right which constitutes a derivative security as
generally defined in Rule 16a-1(c) under the Exchange Act, other than by will or
by operation of the laws of descent and distribution, and such Awards or rights
that may be exercisable shall be exercised during the lifetime of the
Participant only by the Participant or his or her guardian or legal
representative.

                  (b) Permitted Transfer of Option. The Committee or Board, in
its sole discretion, may permit the transfer of an Option granted under this
Option Agreement as follows: (A) by gift to a member of the Participant's
Immediate Family or (B) by transfer by instrument to a trust providing that the
Option is to be passed to beneficiaries upon death of the Optionee. For purposes
of this Section 7(b), "Immediate Family" shall mean the Optionee's spouse
(including a former spouse subject to terms of a domestic relations order);
child, stepchild, grandchild, child-in-law; parent, stepparent, grandparent,
parent-in-law; sibling and sibling-in-law, and shall include adoptive
relationships. If a determination is made by counsel for the Company that the
restrictions contained in this Section 7(b) are not required by applicable
federal or state securities laws under the circumstances, then the Committee or
Board, in its sole discretion, may permit the transfer of Options granted under
this Option Agreement to one or more Beneficiaries or other transferees during
the lifetime of the Participant, which may be exercised by such transferees in
accordance with the terms of this Option Agreement, but only if and to the
extent permitted by the Committee or the Board pursuant to the express terms of
this Option Agreement (subject to any terms and conditions which the Committee
or the Board may impose thereon, and further subject to any prohibitions and
restrictions on such transfers pursuant to Rule 16b-3). A Beneficiary,
transferee, or other person claiming any rights under the Plan from or through
any Participant shall be subject to all terms and conditions of the Plan and any
Award agreement applicable to such Participant, except as otherwise determined
by the Committee or the Board, and to any additional terms and conditions deemed
necessary or appropriate by the Committee or the Board.

         [8. Acceleration of Exercisability of Option. This Option shall become
immediately fully exercisable in the event that, prior to the termination of the
Option pursuant to Section 6 hereof, (a) there is a "Change in Control", as
defined in Section 9(b) of the Plan, that occurs while the Optionee is employed
by the Company or any of its subsidiaries, (b) the Committee or the Board
exercises its discretion to provide a cancellation notice with respect to the
Option pursuant to Section 6(b)(ii) hereof, or (c) the Option is terminated
pursuant to Section 6(b)(i) hereof. [Optional]

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         9. No Rights of Stockholders. Neither the Optionee nor any personal
representative (or beneficiary) shall be, or shall have any of the rights and
privileges of, a stockholder of the Company with respect to any shares of Stock
purchasable or issuable upon the exercise of the Option, in whole or in part,
prior to the date of exercise of the Option.

         10. Market Stand-Off Agreement. At the request of the Company or the
underwriters managing any underwritten offering of the Company's securities, the
Optionee agrees not to sell, make any short sale of, loan, grant any option for
the purchase of, or otherwise dispose of any shares of Stock (other than those
included in the registration) acquired pursuant to the exercise of the Option,
without the prior written consent of the Company or such underwriters, as the
case may be, for such period of time (not to exceed 180 days) from the effective
date of such registration as may be requested by the Company or such managing
underwriters.

         11. No Right to Continued Employment. Neither the Option nor this
Option Agreement shall confer upon the Optionee any right to continued
employment or service with the Company.

         12. Law Governing. Optionee acknowledges and agrees that the vesting of
shares pursuant to the Option granted is earned only by continuing employment or
consultancy at the will of the Company (not through the act of being hired,
being granted this Option or acquiring shares hereunder). Optionee further
acknowledges and agrees that nothing in this Option Agreement, nor in the Plan,
shall confer upon Optionee any right with respect to continuation of employment
or consultancy by the Company, nor shall it interfere in any way with Optionee's
right or the Company's right to terminate Optionee's employment or consultancy
at any time, with or without Cause.

         13. Interpretation / Provisions of Plan Control. This Option Agreement
is subject to all the terms, conditions and provisions of the Plan, including,
without limitation, the amendment provisions thereof, and to such rules,
regulations and interpretations relating to the Plan adopted by the Committee or
the Board as may be in effect from time to time. If and to the extent that this
Option Agreement conflicts or is inconsistent with the terms, conditions and
provisions of the Plan, the Plan shall control, and this Option Agreement shall
be deemed to be modified accordingly. The Optionee accepts the Option subject to
all the terms and provisions of the Plan and this Option Agreement. The
undersigned Optionee hereby accepts as binding, conclusive and final all
decisions or interpretations of the Committee or the Board upon any questions
arising under the Plan and this Option Agreement.

         14. Notices. Any notice under this Option Agreement shall be in writing
and shall be deemed to have been duly given when delivered personally or when
deposited in the United States mail, registered, postage prepaid, and addressed,
in the case of the Company, to the Company's Secretary at:

                                    Synaptics Incorporated
                                    2381 Bering Drive
                                    San Jose, California  95131

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<PAGE>
or if the Company should move its principal office, to such principal office,
and, in the case of the Optionee, to the Optionee's last permanent address as
shown on the Company's records, subject to the right of either party to
designate some other address at any time hereafter in a notice satisfying the
requirements of this Section.

         15. Tax Consequences. Set forth below is a brief summary as of the date
of this Option of some of the federal tax consequences of exercise of this
Option and disposition of the Shares. THIS SUMMARY IS NECESSARILY INCOMPLETE,
AND THE TAX LAWS AND REGULATIONS ARE SUBJECT TO CHANGE. OPTIONEE SHOULD CONSULT
A TAX ADVISER BEFORE EXERCISING THIS OPTION OR DISPOSING OF THE SHARES.

                  (a) Exercise of Option. There may be a regular federal income
tax liability upon the exercise of the Option. The Optionee will be treated as
having received compensation income (taxable at ordinary income tax rates) equal
to the excess, if any, of the fair market value of the Shares on the date of
exercise over the exercise price. If Optionee is an employee, the Company will
be required to withhold from Optionee's compensation or collect from Optionee
and pay to the applicable taxing authorities an amount equal to a percentage of
this compensation income at the time of exercise.

                  (b) Disposition of Shares. If Shares are held for at least one
year, any gain realized on disposition of the Shares will be treated as
long-term capital gain for federal income tax purposes.

         The foregoing discussion assumes that, and only is applicable if, the
fair market value of the Shares as of the date on which the Option is granted is
not significantly less than the exercise price. The Company believes that it has
made a good faith effort to determine the fair market value of the Shares and
does not believe that the exercise price is significantly less than the fair
market value of the Shares on the Date of Grant. No assurances can be given,
however, that the Internal Revenue Service would not take a contrary position.
It is possible that if the fair market value is determined to be significantly
greater than the exercise price, the Internal Revenue Service may take the
position that the Option is not in effect a stock option but should be treated
as a restricted stock for tax purposes. The Optionee should consult with his or
her own tax advisors as to whether any action should be taken to minimize these
risks.

         16. Execution. This Option Agreement is executed by the parties hereto
on the Notice of Grant of Stock Options, which is attached hereto and made a
part hereof.

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<PAGE>
                        2001 INCENTIVE COMPENSATION PLAN
                             SYNAPTICS INCORPORATED
              NON-QUALIFIED STOCK OPTION AGREEMENT FOR UK EMPLOYEES

1.       Grant of Option. SYNAPTICS INCORPORATED (the "Company") hereby grants,
         as of the _________ day of _________________, 20____ ("Date of Grant"),
         to ________________________________________ (the "Optionee") an option
         (the "Option") to purchase up to _________ shares of the Company's
         Common Stock, $_______ par value per share (the "Shares"), at an
         exercise price per share equal to $_______. The Option shall be subject
         to the terms and conditions set forth herein and to the terms and
         conditions of the Joint Election (as defined in paragraph 9 herein).
         The Option was issued pursuant to the Company's 2001 Incentive
         Compensation Plan (the "Plan"), which is incorporated herein for all
         purposes. The Option is a nonqualified stock option, and not an
         Incentive Stock Option. The Optionee hereby acknowledges receipt of a
         copy of the Plan and the Joint Election and agrees to be bound by all
         of the terms and conditions hereof and thereof and all applicable laws
         and regulations.

2.       Definitions. Unless otherwise provided herein, terms used herein that
         are defined in the Plan and not defined herein shall have the meanings
         attributed thereto in the Plan.

3.       Exercise Schedule. Except as otherwise provided in Sections 6 or 12 of
         this Agreement, or in the Plan, the Option is exercisable in
         installments as provided below, which shall be cumulative. To the
         extent that the Option has become exercisable with respect to a
         percentage of Shares as provided below, the Option may thereafter be
         exercised by the Optionee, in whole or in part, at any time or from
         time to time prior to the expiration of the Option as provided herein.
         The following table indicates each date (the "Vesting Date") upon which
         the Optionee shall be entitled to exercise the Option with respect to
         the percentage of Shares granted as indicated beside the date, provided
         that the Continuous Service of the Optionee continues through and on
         the applicable Vesting Date:

               Percentage of Shares                        Vesting Date

         Except as otherwise specifically provided herein, there shall be no
         proportionate or partial vesting in the periods prior to each Vesting
         Date, and all vesting shall occur only on the appropriate Vesting Date.
         Upon the termination of an Optionee's Continuous Service, any unvested
         portion of the Option shall terminate and be null and void.

4.       Method of Exercise. The vested portion of this Option shall be
         exercisable in whole or in part in accordance with the exercise
         schedule set forth in Section 3 hereof by written notice which shall
         state the election to exercise the Option, the number of Shares in
         respect of which the Option is being exercised, and such other
         representations and agreements as to the holder's investment intent
         with respect to such Shares as may be required by the Company pursuant
         to the provisions of the Plan. Such written notice shall be signed by
         the Optionee and shall be delivered in person or by certified mail to
         the Secretary of the Company. The written notice shall be accompanied
         by payment of the exercise price payment of the Option Tax Liability
         (as defined in Section 8b herein) and payment of any liability arising
         under the
<PAGE>
         terms of the Joint Election as so required by the Company. This Option
         shall be deemed to be exercised after receipt by the Company of such
         written notice accompanied by such payments or evidence of
         arrangements, satisfactory to the Board or the committee in its sole
         discretion, which have been made for the Optionee's payment to the
         Company of the Option Tax Liability and/or the liability arising under
         the terms of the Joint Election. No Shares will be issued pursuant to
         the Option unless and until such issuance and such exercise shall
         comply with all relevant provisions of applicable law, including the
         requirements of any stock exchange upon which the Shares then may be
         traded.

5.       Method of Payment. Payment of the exercise price and of the Option Tax
         Liability shall be by any of the following, or a combination thereof,
         at the election of the Optionee: (a) cash; (b) cheque; or (c) such
         other consideration or in such other manner as may be determined by the
         Board or the Committee in its absolute discretion.

         Payment of any liability arising under the terms of the Joint Election
         will be pursuant to the provisions of the Joint Election.

6.       Termination of Option.

         (a)      Any unexercised portion of the Option shall automatically and
                  without notice terminate and become null and void at the time
                  of the earliest to occur of:

                  (i)      three months after the date on which the Optionee's
                           Continuous Service is terminated other than by reason
                           of (A) Cause, which, solely for purposes of this
                           Plan, shall mean the termination of the Optionee's
                           Continuous Service by reason of the Optionee's
                           willful misconduct or gross negligence, (B) a mental
                           or physical disability (within the meaning of
                           Internal Revenue Code Section 22(e)) of the Optionee
                           as determined by a medical doctor satisfactory to the
                           Committee or the Board, or (C) the death of the
                           Optionee;

                  (ii)     immediately upon the termination of the Optionee's
                           Continuous Service for Cause;

                  (iii)    twelve months after the date on which the Optionee's
                           Continuous Service is terminated by reason of a
                           mental or physical disability (within the meaning of
                           Section 22(e) of the Code) as determined by a medical
                           doctor satisfactory to the Committee or the Board;

                  (iv)     (A) twelve months after the date of termination of
                           the Optionee's Continuous Service by reason of the
                           death of the Optionee, or , if later, (B) three
                           months after the date on which the Optionee shall die
                           if such death shall occur during the one year period
                           specified in Subsection 6(a)(iii) hereof; or

                  (v)      the tenth anniversary of the date as of which the
                           Option is granted.

         (b)      To the extent not previously exercised, (i) the Option shall
                  terminate immediately in the event of (1) the liquidation or
                  dissolution of the Company, or (2) any reorganization, merger,
                  consolidation or other form of corporate transaction in which
                  the Company does not survive or the shares of Stock are
                  converted into or exchanged for securities issued by another
                  entity, unless the successor or acquiring entity, or an

                                      -2-
<PAGE>
                  affiliate of such successor or acquiring entity, assumes the
                  Option or substitutes an equivalent option or right pursuant
                  to Section 10(c) of the Plan, and (ii) the Committee or the
                  Board in its sole discretion may by written notice
                  ("cancellation notice") cancel, effective upon the
                  consummation of any corporate transaction described in
                  Subsection 9(b)(i) of the Plan in which the Company does
                  survive, the Option (or portion thereof) that remains
                  unexercised on such date. The Committee or the Board shall
                  give written notice of any proposed transaction referred to in
                  this Section 6(b) a reasonable period of time prior to the
                  closing date for such transaction (which notice may be given
                  either before or after approval of such transaction), in order
                  that the Optionee may have a reasonable period of time prior
                  to the closing date of such transaction within which to
                  exercise the Option if and to the extent that it then is
                  exercisable (including any portion of the Option that may
                  become exercisable upon the closing date of such transaction).
                  The Optionee may condition his exercise of the Option upon the
                  consummation of a transaction referred to in this Section
                  6(b).

7.       Tax Consequences

         (a)      The Optionee should obtain advice from an appropriate
                  independent professional adviser in relation to the United
                  Kingdom taxation implications of the grant, exercise,
                  assignment, release, cancellation or any other disposal of
                  this Option (the "Trigger Event") pursuant to the Plan and on
                  any subsequent sale of the Option Shares. The Optionee should
                  also take advice in respect of the United Kingdom taxation
                  indemnity provisions comprising Sections 8a and 8b below.

8.       Optionee's Taxation Indemnity

         (a)      To the extent permitted by law, the Optionee hereby agrees to
                  indemnify and keep indemnified the Company and the Company, as
                  trustee for and on behalf of any related corporation, in
                  respect of any liability or obligation of the Company and/or
                  any related corporation to account for income tax (under PAYE)
                  or any other taxation provisions and primary class 1 National
                  Insurance contributions ("NICs") in the United Kingdom to the
                  extent arising from a Trigger Event or arising out of the
                  acquisition, retention and disposal of the Shares acquired
                  pursuant to this Option.

         (b)      The Company shall not be obliged to allot and issue any Shares
                  or any interest in Shares pursuant to the exercise of an
                  Option unless and until the Optionee has paid to the Company
                  such sum as is, in the opinion of the Company, sufficient to
                  indemnify the Company in full against any liability the
                  Company has to account to the Inland Revenue for any amount
                  of, or representing, income tax and/or primary NICs (the
                  "Option Tax Liability"), or the Optionee has made such other
                  arrangement as in the opinion of the Company will ensure that
                  the full amount of any Option Tax Liability will be recovered
                  from the Optionee within such period as the Company may then
                  determine.

         (c)      In the absence of any such other arrangement being made, the
                  Company shall have the right to retain out of the aggregate
                  number of shares to which the Optionee would have otherwise
                  been entitled upon the exercise of an Option, such number of
                  Shares as, in the opinion of the Company, will enable the
                  Company to sell as agent for the Optionee (at the best price
                  which can reasonably expect to be obtained at the time of

                                      -3-
<PAGE>
                  the sale) and to pay over to the Company sufficient monies out
                  of the net proceeds of sale, after deduction of all fees,
                  commissions and expenses incurred in relation to such sale, to
                  satisfy the Optionee's liability under such indemnity.

9.       Employer's NICs. As a consideration of the grant of an Option under the
         Plan the Optionee has joined with the Company, or if and to the extent
         that there is a change in the law, any other company or person who is
         or becomes a secondary contributor for NIC purposes in respect of this
         Option (the "Secondary Contributor") in making an election (in such
         terms and such form as provided in paragraphs 3A and 3B of Schedule 1
         to the Social Security Contributions and Benefits Act 1992) which has
         been approved by the Inland Revenue (the "Joint Election"), for the
         transfer of the whole or any liability of the Secondary Contributor to
         Employer's Class 1 NICs to be transferred to the Optionee.

10.      Restrictions While Stock is Not Registered.

         (a)      Restricted Shares. Any shares of Stock acquired upon exercise
                  of the Option specified in Section 1 and (i) all shares of the
                  Company's capital stock received as a dividend or other
                  distribution upon such shares, and (ii) all shares of capital
                  stock or other securities of the Company into which such
                  shares may be changed or for which such shares shall be
                  exchanged, whether through reorganization, recapitalization,
                  stock split-ups or the like, shall be subject to the
                  provisions of this Section 10 at all times, and only at those
                  times, that shares of the Company's Common Stock are not
                  registered under the Securities Exchange Act of 1934, as
                  amended (such times during which the Stock is not so
                  registered sometimes hereinafter being referred to as the
                  "Restricted Period") and are during the Restricted Period
                  hereinafter referred to as "Restricted Shares."

         (b)      No Sale or Pledge of Restricted Shares. Except as otherwise
                  provided herein, Optionee agrees and covenants that during the
                  Restricted Period he or she will not sell, pledge, encumber or
                  otherwise transfer or dispose of, and will not permit to be
                  sold, encumbered, attached or otherwise disposed of or
                  transferred in any manner, either voluntarily or by operation
                  of law (all hereinafter collectively referred to as
                  "transfers"), all or any portion of the Restricted Shares or
                  any interest therein except in accordance with and subject to
                  the terms of this Section 10.

         (c)      Voluntary Transfer Repurchase Option. If Optionee desires to
                  effect a voluntary transfer of any of the Restricted Shares
                  during the Restricted Period, Optionee shall first give
                  written notice to the Company of such intent to transfer (the
                  "Offer Notice") specifying (i) the number of the Restricted
                  Shares (the "Offered Shares") and the date of the proposed
                  transfer (which shall not be less than thirty (30) days after
                  the giving of the Offer Notice), (ii) the name, address, and
                  principal business of the proposed transferee (the
                  "Transferee"), and (iii) the price and other terms and
                  conditions of the proposed transfer of the Offered Shares to
                  the Transferee. The Offer Notice by Optionee shall constitute
                  an offer to sell all, but not less than all, of the Offered
                  Shares, at the price and on the terms specified in such Offer
                  Notice, to the Company and/or its designated purchaser. If the
                  Company desires to accept Optionee's offer to sell, either for
                  itself or on behalf of its designated purchaser, the Company
                  shall signify such acceptance by written notice to Optionee
                  within thirty (30) days following the giving of the Option
                  Notice. Failing such acceptance, Optionee's offer

                                      -4-
<PAGE>
                  shall lapse on the thirty-first day following the giving of
                  the Option Notice. With such written acceptance, the Company
                  shall designate a day not later than ten days following the
                  date of giving its notice of acceptance on which the Company
                  or its designated purchaser shall deliver the purchase price
                  of the Offered Shares (in the same form as provided in the
                  Offer Notice) and Optionee shall deliver to the Company or its
                  designated Purchaser, as applicable, all certificates
                  evidencing the Offered Shares endorsed in blank for transfer
                  or with separate stock powers endorsed in blank for transfer.
                  Payment of the purchase price may, at the discretion of the
                  Company, include cancellation of all or a part of any
                  outstanding indebtedness of Optionee to the Company. Upon the
                  lapse without acceptance by the Company of Optionee's offer to
                  sell the Offered Shares, Optionee shall be free to transfer
                  the Offered Shares not purchased by the Company or the
                  designated purchaser to the Transferee (and no one else), for
                  a price and on terms and conditions which are no more
                  favorable to the Transferee than those set forth in the Offer
                  Notice, for a period of thirty days thereafter, but after such
                  period the restrictions of this Section 10 shall again apply
                  to the Restricted Shares. The Offered Shares so transferred by
                  Optionee to the Transferee shall continue to be subject to all
                  of the terms and conditions of this Section 10 and the Company
                  shall have the right to require, as a condition of such
                  transfer, that the Transferee execute an agreement
                  substantially in the form and content of the provisions of
                  this Section 10, as well as any shareholders agreement
                  required by the Company.

         (d)      Involuntary Transfer Repurchase Option. Whenever, during the
                  Restricted Period, Optionee has any notice or knowledge of any
                  attempted, pending, or consummated involuntary transfer or
                  lien or charge upon any of the Restricted Shares, whether by
                  operation of law or otherwise (including divorce), Optionee
                  shall give immediate written notice thereof to the Company.
                  Whenever the Company has any other notice or knowledge of any
                  such attempted, impending, or consummated involuntary
                  transfer, lien, or charge, it shall give written notice
                  thereof to the Optionee. In either case, Optionee agrees to
                  disclose forthwith to the Company all pertinent information in
                  his possession relating thereto. If during the Restricted
                  Period any of the Restricted Shares are subjected to any such
                  involuntary transfer, lien, or charge, the Company and its
                  designated purchaser shall at all times have the immediate and
                  continuing option to purchase such of the Restricted Shares
                  upon notice by the Company to Optionee or other record holder
                  at a price and on terms determined according to Section 10(f)
                  below, and any of the Restricted Shares so purchased by the
                  Company or its designated purchaser shall in every case be
                  free and clear of such transfer, lien, or charge.

         (e)      Excepted Transfers. The provisions of Sections 10(b) and (c)
                  shall not apply to transfers by Optionee to his or her spouse,
                  lineal descendants or trustee of trusts for their benefit,
                  provided, however, that during the Restricted Period Optionee
                  shall continue to be subject to all of the terms and
                  provisions of this Section 10 with respect to any remaining
                  present or future interest whatsoever he or she may have in
                  the transferred Restricted Shares, and, further provided that
                  during the Restricted Period any shares transferred pursuant
                  to this subsection (e) shall continue to be treated as
                  Restricted Shares and the transferee of any such Restricted
                  Shares shall likewise be subject to all such terms and
                  conditions of this Section 10 as though such transferee were a
                  party hereto.

                                      -5-
<PAGE>
         (f)      Repurchase Price. For purposes of Section 10(d) hereof, the
                  per share purchase price of Restricted Shares shall be an
                  amount equal to the fair market value of such share,
                  determined by the Board and agreed by the Inland Revenue Share
                  Valuation division as of any date determined by the Board that
                  is not more than one year prior to the date of the event
                  giving rise to the Company's right to purchase such Restricted
                  Shares. The Company shall notify Optionee or his or her
                  executor of the price so determined within 30 days after
                  receipt of notice of the involuntary transfer, lien or charge.
                  Any determination of fair market value made by the Board shall
                  be binding and conclusive on all parties unless shown to have
                  been made in an arbitrary and capricious manner. The purchase
                  price shall, at the option of the Company, be payable in cash
                  or in the form of the Company's promissory note payable in up
                  to two equal annual installments commencing on the date of the
                  acquisition by the Company (the "Restricted Share Acquisition
                  Date") of the Restricted Shares, together with interest on the
                  unpaid balance thereof at the rate equal to the prime rate of
                  interest as quoted in the Wall Street Journal on the
                  Restricted Share Acquisition Date.

         (g)      Legends. The certificate or certificates representing any
                  Shares acquired pursuant to the exercise of an Option prior to
                  the last day of the Restricted Period shall bear the following
                  legends (as well as any legends required by applicable state
                  and federal corporate and securities laws):

                           (A) "THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN
                  REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE "ACT") AND
                  MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR
                  HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER THE ACT OR, IN
                  THE OPINION OF COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO
                  THE ISSUER OF THESE SECURITIES, SUCH OFFER, SALE OR TRANSFER,
                  PLEDGE OR HYPOTHECATION IS IN COMPLIANCE THEREWITH."

                           (B) "THE SHARES REPRESENTED BY THIS CERTIFICATE ARE
                  SUBJECT TO CERTAIN RESTRICTIONS ON TRANSFER AND RIGHT OF FIRST
                  REFUSAL AND REPURCHASE OPTIONS HELD BY THE ISSUER OR ITS
                  ASSIGNEE(S) AS SET FORTH IN A STOCK OPTION AGREEMENT DATED
                  ______________________, AS MAY BE AMENDED FROM TIME TO TIME, A
                  COPY OF WHICH MAY BE OBTAINED AT THE PRINCIPAL OFFICE OF THE
                  ISSUER. SUCH TRANSFER RESTRICTIONS, RIGHT OF FIRST REFUSAL AND
                  REPURCHASE RIGHTS ARE BINDING ON TRANSFEREES OF THESE SHARES."

         11.      Transferability

         (a)      General. Except as provided herein, a Participant may not
                  assign, sell, transfer, or otherwise encumber or subject to
                  any lien any Award or other right or interest granted under
                  this Plan, in whole or in part, including any Award or right
                  which constitutes a derivative security as generally defined
                  in Rule 16a-1(c) under the Exchange Act, other than by will or
                  by operation of the laws of descent and distribution, and such
                  Awards or rights that may be exercisable shall be exercised
                  during the lifetime of the Participant only by the Participant
                  or his or her guardian or legal representative.

                                      -6-
<PAGE>
         (b)      Permitted Transfer of Option. The Committee or Board, in its
                  sole discretion, may permit the transfer of an Option granted
                  under this Agreement as follows: (A) by gift to a member of
                  the Participant's Immediate Family or (B) by transfer by
                  instrument to a trust providing that the Option is to be
                  passed to beneficiaries upon death of the Optionee. For
                  purposes of this Section 11(b), "Immediate Family" shall mean
                  the Optionee's spouse (including a former spouse subject to
                  terms of a domestic relations order); child, stepchild,
                  grandchild, child-in-law; parent, stepparent, grandparent,
                  parent-in-law; sibling and sibling-in-law, and shall include
                  adoptive relationships. If a determination is made by counsel
                  for the Company that the restrictions contained in this
                  Section 11(b) are not required by applicable federal or state
                  securities laws under the circumstances, then the Committee or
                  Board, in its sole discretion, may permit the transfer of
                  Options granted under this Agreement to one or more
                  Beneficiaries or other transferees during the lifetime of the
                  Participant, which may be exercised by such transferees in
                  accordance with the terms of this Agreement, but only if and
                  to the extent permitted by the Committee or the Board pursuant
                  to the express terms of this Agreement (subject to any terms
                  and conditions which the Committee or the Board may impose
                  thereon, and further subject to any prohibitions and
                  restrictions on such transfers pursuant to Rule 16b-3). A
                  Beneficiary, transferee, or other person claiming any rights
                  under the Plan from or through any Participant shall be
                  subject to all terms and conditions of the Plan and any Award
                  agreement applicable to such Participant, except as otherwise
                  determined by the Committee or the Board, and to any
                  additional terms and conditions deemed necessary or
                  appropriate by the Committee or the Board.

12.      Acceleration of Exercisability of Option. This Option [shall] [shall
         not] become immediately fully exercisable in the event that, prior to
         the termination of the Option pursuant to Section 6 hereof, (a) there
         is a "Change in Control", as defined in Section 9(b) of the Plan, that
         occurs while the Optionee is employed by the Company or any of its
         subsidiaries, (b) the Committee or the Board exercises its discretion
         to provide a cancellation notice with respect to the Option pursuant to
         Section 6(b)(ii) hereof, or (c) the Option is terminated pursuant to
         Section 6(b)(i) hereof.

13.      No Rights of Stockholders. Neither the Optionee nor any personal
         representative (or beneficiary) shall be, or shall have any of the
         rights and privileges of, a stockholder of the Company with respect to
         any shares of Stock purchasable or issuable upon the exercise of the
         Option, in whole or in part, prior to the date of exercise of the
         Option.

14.      Market Stand-Off Agreement. In the event of an initial public offering
         of the Company's securities and upon request of the Company or the
         underwriters managing any underwritten offering of the Company's
         securities, the Optionee agrees not to sell, make any short sale of,
         loan, grant any option for the purchase of, or otherwise dispose of any
         shares of Stock (other than those included in the registration)
         acquired pursuant to the exercise of the Option, without the prior
         written consent of the Company or such underwriters, as the case may
         be, for such period of time (not to exceed 180 days) from the effective
         date of such registration as may be requested by the Company or such
         managing underwriters.

15.      Optionee's Representations. In the event the Company's issuance of the
         shares of Stock purchasable pursuant to the exercise of this Option has
         not been registered under the Securities Act of 1933, as amended, at
         the time this Option is exercised, Optionee shall, if

                                      -7-
<PAGE>
         required by the Company, concurrently with the exercise of all or any
         portion of this Option, deliver to the Company his Investment
         Representation Statement in the form attached to this Agreement as
         Exhibit A or in such other form as the Company may request.

16.      No Right to Continued Employment. Neither the Option nor this Agreement
         shall confer upon the Optionee any right to continued employment or
         service with the Company.

17.      Data Protection

         (a)      In order to facilitate the administration of the Plan, it will
                  be necessary for Synaptics UK Limited (or its payroll
                  administrators) to collect, hold and process certain personal
                  information about the Optionee and to transfer this data to
                  the Company and to certain third parties such as brokers with
                  whom the Optionee may elect to deposit any share capital under
                  the Plan. The Optionee consents to Synaptics (UK) Limited (or
                  its payroll administrators) collecting, holding and processing
                  its personal data and transferring this data to the Company or
                  any other third parties insofar as is reasonably necessary to
                  implement, administer and manage the Plan.

         (b)      Where the transfer is to be to a destination outside the
                  European Economic Area, the Company shall take reasonable
                  steps to ensure that the Optionee's personal data continues to
                  be adequate protected and securely held.

         (c)      The Optionee understands that the Optionee may, at any time,
                  view its personal data, require any necessary corrections to
                  it or withdraw the consents herein in writing by contacting
                  the [Human Resources Department] of the Company (but
                  acknowledges that without the use of such data it may not be
                  practicable for Synaptics (UK) Limited and the Company to
                  administer the Optionee's involvement in the Plan in a timely
                  fashion or at all and this may be detrimental to the Optionee.

18.      Law Governing. This Agreement shall be governed in accordance with and
         governed by the internal laws of the State of California. The Joint
         Election is governed by the laws of England and Wales.

19.      Interpretation / Provisions of Plan Control. This Agreement is subject
         to all the terms, conditions and provisions of the Plan, including,
         without limitation, the amendment provisions thereof, and to such
         rules, regulations and interpretations relating to the Plan adopted by
         the Committee or the Board as may be in effect from time to time. If
         and to the extent that this Agreement conflicts or is inconsistent with
         the terms, conditions and provisions of the Plan or the Joint Election,
         the Plan shall control, except in respect to the liabilities arising
         under the Joint Election in relation to which the Joint Election shall
         control, and this Agreement shall be deemed to be modified accordingly.
         The Optionee accepts the Option subject to all the terms and provisions
         of the Plan, the Joint Election and this Agreement. The undersigned
         Optionee hereby accepts as binding, conclusive and final all decisions
         or interpretations of the Committee or the Board upon any questions
         arising under the Plan, the Joint Election and this Agreement.

20.      Notices. Any notice under this Agreement shall be in writing and shall
         be deemed to have been duly given when delivered personally or when
         deposited in the Royal Mail, registered, postage prepaid, and
         addressed, in the case of the Company, to the Company's Secretary at:

                                      -8-
<PAGE>
                                    Synaptics Incorporated
                                    2381 Bering Drive
                                    San Jose, California  95131

         or if the Company should move its principal office, to such principal
         office, and, in the case of the Optionee, to the Optionee's last
         permanent address as shown on the Company's records, subject to the
         right of either party to designate some other address at any time
         hereafter in a notice satisfying the requirements of this Section.

         IN WITNESS WHEREOF, the undersigned have executed this Agreement as of
the _______ day of ________________, 20_____.

                                               COMPANY:
                                               SYNAPTICS INCORPORATED, A
                                               CALIFORNIA CORPORATION

                                           By:
                                              -------------------------------
                                           Name:
                                           Title:

         Optionee acknowledges receipt of a copy of the Plan and the Joint
         Election and represents that he or she is familiar with the terms and
         provisions thereof, and hereby accepts this Option subject to all of
         the terms and provisions thereof. Optionee has reviewed the Plan, the
         Joint Election and this Option in their entirety, has had an
         opportunity to obtain independent legal advice prior to executing this
         Option, and fully understands all provisions of the Option.

         Dated:                            OPTIONEE:
               ---------------------

                                           By:
                                              -------------------------------
                                           Name:

                                      -9-
<PAGE>
                                    EXHIBIT A
                       INVESTMENT REPRESENTATION STATEMENT

PURCHASER      :
COMPANY        :
SECURITY       :  COMMON STOCK
AMOUNT         :
DATE           :

In connection with the purchase of the above-listed Securities, I, the
Purchaser, represent to the Company the following:

         (a) I am aware of the Company's business affairs and financial
condition, and have acquired sufficient information about the Company to reach
an informed and knowledgeable decision to acquire the Securities. I am
purchasing these Securities for my own account for investment purposes only and
not with a view to, or for the resale in connection with, any "distribution"
thereof for purposes of the Securities Act of 1933, as amended (the "Securities
Act").

         (b) I understand that the Company's issuance of the Securities has not
been registered under the Securities Act in reliance upon a specific exemption
therefrom, which exemption depends upon, among other things, the bona fide
nature of my investment intent as expressed herein. In this connection, I
understand that, in the view of the Securities and Exchange Commission (the
"SEC"), the statutory basis for such exemption may be unavailable if my
representation was predicated solely upon a present intention to hold these
Securities for the minimum capital gains period specified under tax statutes,
for a deferred sale, for or until an increase or decrease in the market price of
the Securities, or for a period of one year or any other fixed period in the
future.

         (c) I further understand that the Securities must be held indefinitely
unless the transfer is subsequently registered under the Securities Act or
unless an exemption from registration is otherwise available. Moreover, I
understand that the Company is under no obligation to register any transfer of
the Securities. In addition, I understand that the certificate evidencing the
Securities will be imprinted with a legend which prohibits the transfer of the
Securities unless registered or such registration is not required in the opinion
of counsel for the Company.

         (d) I am familiar with the provisions of Rule 701 and Rule 144, each
promulgated under the Securities Act, which, in substance, permit limited public
resale of "restricted securities" acquired, directly or indirectly, from the
issuer thereof, in a non-public offering subject to the satisfaction of certain
conditions. Rule 701 provides that if the issuer qualifies under Rule 701 at the
time of issuance of the Securities, such issuance will be exempt from
registration under the Securities Act. In the event the Company later becomes
subject to the reporting requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, ninety (90) days thereafter the securities exempt under
Rule 701 may be resold, subject to the satisfaction of certain of the conditions
specified by Rule 144, including among other things: (1) the sale being made
through a broker in an unsolicited "broker's transaction" or in transactions
directly with a market maker (as said term is defined under the Securities
Exchange Act of 1934); and, in the case of an affiliate, (2) the availability of
certain public information about the Company, and the amount of securities being
sold during any three month period not exceeding the limitations specified in
Rule 144(e), if applicable. Notwithstanding this paragraph (d), I acknowledge
and agree to the restrictions set forth in paragraph (e) hereof.

                                      -10-
<PAGE>
         In the event that the Company does not qualify under Rule 701 at the
time of issuance of the Securities, then the Securities may be resold in certain
limited circumstances subject to the provisions of Rule 144, which requires
among other things: (1) the availability of certain public information about the
Company, (2) the resale occurring not less than one year after the party has
purchased, and made full payment for, within the meaning of Rule 144, the
securities to be sold; and, in the case of an affiliate, or of a non-affiliate
who has held the securities less than two years, (3) the sale being made through
a broker in an unsolicited "broker's transaction" or in transactions directly
with a market maker (as said term is defined under the Securities Exchange Act
of 1934) and the amount of securities being sold during any three month period
not exceeding the specified limitations stated therein, if applicable.

         (e) I further understand that in the event all of the applicable
requirements of Rule 144 or Rule 701 are not satisfied, registration under the
Securities Act, compliance with Regulation A, or some other registration
exemption will be required; and that, notwithstanding the fact that Rule 144 and
Rule 701 are not exclusive, the Staff of the SEC has expressed its opinion that
persons proposing to sell private placement securities other than in a
registered offering and otherwise than pursuant to Rule 144 or Rule 701 will
have a substantial burden of proof in establishing that an exemption from
registration is available for such offers or sales, and that such persons and
their respective brokers who participate in such transactions do so at their own
risk.

                                         Signature of Purchaser:

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

Date:
     --------------------

                                      -11-<PAGE>
                                                                 EXHIBIT 10.7(a)

                             SYNAPTICS INCORPORATED

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

                         CORRECTED AMENDED AND RESTATED
                        2001 EMPLOYEE STOCK PURCHASE PLAN
                     (AS AMENDED THROUGH FEBRUARY 20, 2002)

<PAGE>

                             SYNAPTICS INCORPORATED
                          -----------------------------

                         CORRECTED AMENDED AND RESTATED
                        2001 EMPLOYEE STOCK PURCHASE PLAN

1. Purpose...............................................................    1
2. Definitions...........................................................    1
3. Eligibility...........................................................    3
4. Offering Periods......................................................    3
5. Election to Participate...............................................    4
6. Participant Contributions.............................................    5
7. Grant of Option.......................................................    6
8. Exercise Price........................................................    7
9. Exercise of Options...................................................    7
10.Delivery..............................................................    7
11.Withdrawal; Termination of Employment.................................    8
12.Stock.................................................................    8
13.Administration........................................................    9
14.Designation of Beneficiary............................................    9
15.Transferability.......................................................   10
16.Participant Accounts..................................................   10
17.Adjustments Upon Changes in Capitalization; Corporate Transactions....   10
18.Amendment of the Plan.................................................   11
19.Termination of the Plan...............................................   11
20.Notices...............................................................   11
21.Effective Date........................................................   11
22.Conditions Upon Issuance of Shares....................................   12
23.Expenses of the Plan..................................................   12
24.No Employment Rights..................................................   12
25.Applicable Law........................................................   12
26.Additional Restrictions of Rule 16b-3.................................   12

<PAGE>

                             SYNAPTICS INCORPORATED
                          -----------------------------

                         CORRECTED AMENDED AND RESTATED
                        2001 EMPLOYEE STOCK PURCHASE PLAN

      1.    Purpose. The purpose of the Plan is to provide incentive for present
and future employees of the Company and any Designated Subsidiary to acquire a
proprietary interest (or increase an existing proprietary interest) in the
Company through the purchase of Common Stock. It is the Company's intention that
the Plan qualify as an "employee stock purchase plan" under Section 423 of the
Code. Accordingly, the provisions of the Plan shall be administered, interpreted
and construed in a manner consistent with the requirements of that section of
the Code.

      2.    Definitions.

            (a) "Applicable Percentage" means the percentage specified in
Section 8, subject to adjustment by the Committee as provided in Section 8.

            (b) "Board" means the Board of Directors of the Company.

            (c) "Code" means the Internal Revenue Code of 1986, as amended, and
any successor thereto.

            (d) "Committee" means the committee appointed by the Board to
administer the Plan as described in Section 13 of the Plan or, if no such
Committee is appointed, the Board.

            (e) "Common Stock" means the Company's common stock, par value $.001
per share.

            (f) "Company" means Synaptics Incorporated, a Delaware
corporation.

            (g) "Compensation" means, with respect to each Participant for each
pay period, the full base salary and overtime paid to such Participant by the
Company or a Designated Subsidiary. Except as otherwise determined by the
Committee, "Compensation" does not include: (i) bonuses or commissions; (ii) any
amounts contributed by the Company or a Designated Subsidiary to any pension
plan; (iii) any automobile or relocation allowances (or reimbursement for any
such expenses); (iv) any amounts paid as a starting bonus or finder's fee; (v)
any amounts realized from the exercise of any stock options or incentive awards;
(vi) any amounts paid by the Company or a Designated Subsidiary for other fringe
benefits, such as health and welfare, hospitalization and group life insurance
benefits, or perquisites, or paid in lieu of such benefits, or; (vii) other
similar forms of extraordinary compensation.

            (h) "Continuous Status as an Employee" means the absence of any
interruption or termination of service as an Employee. Continuous Status as an
Employee shall not be considered interrupted in the case of a leave of absence
agreed to in writing by the Company or the Designated Subsidiary that employs
the Employee, provided that such leave is for a period of not more than 90 days
or reemployment upon the expiration of such leave is guaranteed by contract or
statute.

<PAGE>
            (i) "Designated Subsidiaries" means the Subsidiaries that have been
designated by the Board from time to time in its sole discretion as eligible to
participate in the Plan.

            (j) "Employee" means any person, including an Officer, whose
customary employment with the Company or one of its Designated Subsidiaries is
at least twenty (20) hours per week and more than five (5) months in any
calendar year.

            (k) "Entry Date" means the first day of each Exercise Period.

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

            (m) "Exercise Date" means the last Trading Day ending on or before
each June 30 and December 31.

            (n) "Exercise Period" means, for any Offering Period, each period
commencing on the Offering Date and on the day after each Exercise Date, and
terminating on the immediately following Exercise Date.

            (o) "Exercise Price" means the price per share of Common Stock
offered in a given Offering Period determined as provided in Section 8.

            (p) "Fair Market Value" means, with respect to a share of Common
Stock, the Fair Market Value as determined under Section 7(b).

            (q) "First Offering Date" means the commencement date of the initial
public offering contemplated by the Registration Statement on Form S-1 filed by
the Company with the Securities and Exchange Commission.

            (r) "Offering Date" means the first Trading Day of each Offering
Period; provided, that in the case of an individual who becomes eligible to
become a Participant under Section 3 after the first Trading Day of an Offering
Period, the term "Offering Date" shall mean the first Trading Day of the
Exercise Period coinciding with or next succeeding the day on which that
individual becomes eligible to become a Participant. Options granted after the
first day of an Offering Period will be subject to the same terms as the options
granted on the first Trading Day of such Offering Period except that they will
have a different grant date (thus, potentially, a different exercise price) and,
because they expire at the same time as the options granted on the first Trading
Day of such Offering Period, a shorter term.

            (s) "Offering Period" means, subject to adjustment as provided in
Section 4, (i) with respect to the first Offering Period, the period beginning
on the First Offering Date and ending on December 31, 2003, and (ii) with
respect to each Offering Period thereafter, the period beginning on the January
1 immediately following the end of the previous Offering Period and ending on
the December 31 which is 24 months thereafter.

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

                                       2
<PAGE>
            (u) "Participant" means an Employee automatically enrolled in the
Plan pursuant to Section 5(a) hereof, or an Employee who has elected to
participate in the Plan by filing an enrollment agreement with the Company as
provided in Section 5(b) hereof.

            (v) "Plan" shall mean this Amended and Restated Synaptics
Incorporated 2001 Employee Stock Purchase Plan.

            (w) "Plan Contributions" means, with respect to each Participant,
the lump sum cash transfers, if any, made by the Participant to the Plan
pursuant to Section 5(a) hereof, plus the after-tax payroll deductions, if any,
withheld from the Compensation of the Participant and contributed to the Plan
for the Participant as provided in Section 6 hereof, and any other amounts
contributed to the Plan for the Participant in accordance with the terms of the
Plan.

            (x) "Subsidiary" shall mean any corporation, domestic or foreign, of
which the Company owns, directly or indirectly, 50% or more of the total
combined voting power of all classes of stock, and that otherwise qualifies as a
"subsidiary corporation" within the meaning of Section 424(f) of the Code.

            (y) "Trading Day" shall mean a day on which the national stock
exchanges and the Nasdaq system are open for trading.

      3. Eligibility.

            (a) Any Employee who has completed at least three (3) months of
employment with the Company or any Designated Subsidiary and who is an Employee
as of the Offering Date of a given Offering Period shall be eligible to become a
Participant as of any Entry Date within that Offering Period under the Plan,
subject to the requirements of Section 5(a) and the limitations imposed by
Section 423(b) of the Code; provided, however, that any Employee who is an
Employee as of the First Offering Date shall be eligible to become a Participant
as of such First Offering Date.

            (b) Notwithstanding any provision of the Plan to the contrary, no
Participant shall be granted an option under the Plan (i) to the extent that if,
immediately after the grant, such Employee (or any other person whose stock
would be attributed to such Employee pursuant to Section 424(d) of the Code)
would own stock and/or hold outstanding options to purchase stock possessing 5%
or more of the total combined voting power or value of all classes of stock of
the Company or of any Subsidiary of the Company, or (ii) to the extent that his
or her rights to purchase stock under all employee stock purchase plans of the
Company and its Subsidiaries intended to qualify under Section 423 of the Code
to accrue at a rate which exceeds $25,000 of fair market value of stock
(determined at the time such option is granted) for each calendar year in which
such option is outstanding at any time.

            4.  Offering Periods. The Plan shall generally be implemented by a
series of Offering Periods. The first Offering Period shall commence on the
First Offering Date and end on December 31, 2003, and succeeding Offering
Periods shall commence on the January 1 immediately following the end of the
previous Offering Period and end on the December 31 which is 24 months
thereafter. If, however, the Fair Market Value of a share of Common Stock on any
Exercise Date (except the final scheduled Exercise Date of any Offering Period)
is lower than the Fair Market Value of a share of Common Stock on the Offering
Date, then the Offering Period in progress shall end immediately

                                       3
<PAGE>
following the close of trading on such Exercise Date, and a new Offering Period
shall begin on the next subsequent January 1 or July 1, as applicable, and shall
extend for a 24 month period ending on December 31 or June 30, as applicable.
Subsequent Offering Periods shall commence on the January 1 or July 1, as
applicable, immediately following the end of the previous Offering Period and
shall extend for a 24 month period ending on December 31 or June 30, as
applicable. The Committee shall have the power to make other changes to the
duration and/or the frequency of Offering Periods with respect to future
offerings if such change is announced at least five (5) days prior to the
scheduled beginning of the first Offering Period to be affected.

      5.  Participation.

            (a) All Employees who are eligible Employees as of the First
Offering Date shall automatically become Participants in the Plan as of the
First Offering Date, and shall be eligible to purchase shares of the Common
Stock on the Exercise Date of the first Exercise Period of the initial Offering
Period in an amount equal to the lesser of (i) the aggregate purchase price for
one thousand five hundred (1,500) shares of Common Stock or (ii) fifteen (15%)
percent of the Compensation that the Participant receives during the first
Exercise Period of the initial Offering Period (subject to the restrictions
contained in Section 3(b) hereof), unless the Participant elects a lower level
of participation as provided under Section 5(c) hereof. Such purchase shall be
made by a direct lump sum cash transfer by the Participant to the Plan, unless
the Participant files a payroll deduction election in accordance with Section
5(c), or withdraws from the Plan pursuant to Section 11 hereof. No enrollment
agreement or payroll deduction election need be filed by a Participant with the
Company in order to participate in the initial Offering Period.

            (b) Employees meeting the eligibility requirements of Section 3
hereof after the First Offering Date may elect to participate in the Plan
commencing on any Entry Date by completing an enrollment agreement on the form
provided by the Company and filing the enrollment agreement with the Company on
or prior to such Entry Date, unless a later time for filing the enrollment
agreement is set by the Committee for all eligible Employees with respect to a
given offering. The enrollment agreement shall contain a payroll deduction
election setting forth the percentage of the Participant's Compensation that is
to be withheld by payroll deduction pursuant to the Plan.

            (c) No payroll deductions shall be made (and no payroll deduction
elections shall be accepted) by the Company for Participants during the first
Exercise Period of the initial Offering Period prior to the time that a
registration statement with respect to the shares of Common Stock being offered
under the Plan has been filed with the Securities Exchange Commission on Form
S-8, and is effective. Once the Form S-8 is effective, a Participant may, but
need not, make a payroll deduction election with respect to the first Exercise
Period of the initial Offering Period by filing an enrollment agreement
containing the payroll deduction election with the Company. A Participant may
elect a lower level of participation than that provided in Section 5(a) hereof
with respect to the first Exercise Period of the initial Offering Period at that
time. If a payroll deduction is elected under this Section 5(c), payroll
deductions may commence as early as with the first pay period beginning after
the First Offering Date. Subject to the participation level specified in Section
5(a), the rate of payroll deduction during the first Exercise Period of the
initial Offering Period may exceed the maximum permitted rate under Section 6(a)
hereof to make up for the payroll deductions, if any, which would otherwise have
been made prior to the effectiveness of the Form S-8 with respect to the

                                       4
<PAGE>
Plan. If a payroll deduction election is made under this Section 5(c), payroll
deductions shall continue at the rate elected by the Participant under Section
6(a) for subsequent Exercise Periods, unless the Participant makes a change
permitted under Section 6(b), or withdraws from the Plan under Section 11.

            (d) For all Exercise Periods subsequent to the first Exercise Period
of the initial Offering Period, purchases generally must be made via payroll
deduction. Participants in the first Exercise Period of the initial Offering
Period who do not make a payroll deduction election pursuant to Section 5(c)
must file an enrollment form containing a payroll deduction election with
respect to subsequent Exercise Periods with the Company prior to the
commencement of a subsequent Exercise Period (unless a later time for filing is
set by the Administrator for all Participants) in order to make further
purchases under the Plan. Payroll deductions for Participants required to file a
payroll deduction election under this Section 5(d) shall commence on the first
payroll of the subsequent Exercise Period and shall end on the last payroll in
the Offering Period, unless sooner terminated by the Participant as provided in
Section 11.

            (e) Except as otherwise determined by the Committee under rules
applicable to all Participants, payroll deductions for Participants enrolling in
the Plan after the First Offering Date under Section 5(b) shall commence on the
first payroll following the Entry Date on which the Participant files an
enrollment agreement in accordance with Section 5(b) and shall end on the last
payroll in the Offering Period, unless sooner terminated by the Participant as
provided in Section 11.

            (f) Unless a Participant elects otherwise prior to the last Exercise
Date of an Offering Period, including the last Exercise Date prior to
termination in the case of an Offering Period terminated by operation of the
rule contained in Section 4 hereof, such Participant shall be deemed (i) to have
elected to participate in the immediately succeeding Offering Period (and, for
purposes of such Offering Period such Participant's "Entry Date" shall be deemed
to be the first day of such Offering Period) and (ii) to have authorized the
same payroll deduction for such immediately succeeding Offering Period as was in
effect for such Participant immediately prior to the commencement of such
succeeding Offering Period.

      6.  Plan Contributions.

            (a) Except with respect to the first Exercise Period of the initial
Offering Period, and except as otherwise authorized by the Committee pursuant to
Section 6(d) below, all contributions to the Plan shall be made only by payroll
deductions. At the time a Participant files the enrollment agreement with
respect to an Offering Period, the Participant may authorize payroll deductions
to be made on each payroll date during the portion of the Offering Period that
he or she is a Participant in an amount not less than 1% and not more than 15%
of the Participant's Compensation on each payroll date during the portion of the
Offering Period that he or she is a Participant (or subsequent Offering Periods
as provided in Section 5(f)). The amount of payroll deductions shall be a whole
percentage (i.e., 1%, 2%, 3%, etc.) of the Participant's Compensation.

            (b) A Participant may discontinue his or her participation in the
Plan as provided in Section 11, or may decrease or increase the rate or amount
of his or her payroll deductions during such Offering Period (within the
limitations of Section 5(c) and 6(a) above) by completing and filing with the
Company a new enrollment agreement authorizing a change in the rate or amount of
payroll

                                       5
<PAGE>
deductions; provided, that a Participant may not change the rate or amount of
his or her payroll deductions more than once in any Exercise Period. The change
in rate or amount shall be effective with the first full payroll period
following ten (10) business days after the Company's receipt of the new
enrollment agreement.

            (c) Notwithstanding the foregoing, to the extent necessary to comply
with Section 423(b)(8) of the Code and Section 3(b) hereof, a Participant's
payroll deductions may be decreased to 0% at such time during any Exercise
Period which is scheduled to end during the current calendar year that the
aggregate of all payroll deductions accumulated with respect to such Exercise
Period and any other Exercise Period ending within the same calendar year are
equal to the product of $25,000 multiplied by the Applicable Percentage for the
calendar year. Payroll deductions shall recommence at the rate provided in the
Participant's enrollment agreement at the beginning of the following Exercise
Period which is scheduled to end in the following calendar year, unless
terminated by the Participant as provided in Section 11.

            (d) Notwithstanding anything to the contrary in the foregoing, but
subject to the limitations set forth in Section 3(b), the Committee may permit
Participants to make after-tax contributions to the Plan at such times and
subject to such terms and conditions as the Committee may in its discretion
determine. All such additional contributions shall be made in a manner
consistent with the provisions of Section 423 of the Code or any successor
thereto, and shall be held in Participants' accounts and applied to the purchase
of shares of Common Stock pursuant to options granted under this Plan in the
same manner as payroll deductions contributed to the Plan as provided above.

            (e) All Plan Contributions made for a Participant shall be deposited
in the Company's general corporate account and shall be credited to the
Participant's account under the Plan. No interest shall accrue or be credited
with respect to a Participant's Plan Contributions. All Plan Contributions
received or held by the Company may be used by the Company for any corporate
purpose, and the Company shall not be obligated to segregate or otherwise set
apart such Plan Contributions from any other corporate funds.

      7.  Grant of Option.

            (a) On a Participant's Entry Date, subject to the limitations set
forth in Sections 3(b) and 12(a), the Participant shall be granted an option to
purchase on each subsequent Exercise Date during the Offering Period in which
such Entry Date occurs (at the Exercise Price determined as provided in Section
8 below) up to a number of shares of Common Stock determined by dividing such
Participant's Plan Contributions accumulated prior to such Exercise Date and
retained in the Participant's account as of such Exercise Date by the Exercise
Price; provided, that the maximum number of shares a Participant may purchase
during any Exercise Period shall be One Thousand Five Hundred (1,500) shares.
The Fair Market Value of a share of Common Stock shall be determined as provided
in Section 7(b).

            (b) The Fair Market Value of a share of Common Stock on a given date
shall be determined by the Committee in its discretion; provided, that if there
is a public market for the Common Stock, the Fair Market Value per share shall
be either (i) the closing price of the Common Stock on such date (or, in the
event that the Common Stock is not traded on such date, on the

                                       6
<PAGE>

immediately preceding trading date), as reported by the National Association of
Securities Dealers Automated Quotation (Nasdaq) National Market System, (ii) if
such price is not reported, the average of the bid and asked prices for the
Common Stock on such date (or, in the event that the Common Stock is not traded
on such date, on the immediately preceding trading date), as reported by Nasdaq,
(iii) in the event the Common Stock is listed on a stock exchange, the closing
price of the Common Stock on such exchange on such date (or, in the event that
the Common Stock is not traded on such date, on the immediately preceding
trading date), as reported in The Wall Street Journal, or (iv) if no such
quotations are available for a date within a reasonable time prior to the
valuation date, the value of the Common Stock as determined by the Committee
using any reasonable means. For purposes of the First Offering Date, the Fair
Market Value of a share of Common Stock shall be the Price to Public as set
forth in the final prospectus filed by the Company with the Securities and
Exchange Commission pursuant to Rule 424 under the Securities Act of 1933, as
amended.

      8.  Exercise Price. The Exercise Price per share of Common Stock offered
to each Participant in a given Offering Period shall be the lower of: (i) the
Applicable Percentage of the greater of (A) the Fair Market Value of a share of
Common Stock on the Offering Date or (B) the Fair Market Value of a share of
Common Stock on the Entry Date on which the Employee elects to become a
Participant within the Offering Period or (ii) the Applicable Percentage of the
Fair Market Value of a share of Common Stock on the Exercise Date. The
Applicable Percentage with respect to each Offering Period shall be 85%, unless
and until such Applicable Percentage is increased by the Committee, in its sole
discretion, provided that any such increase in the Applicable Percentage with
respect to a given Offering Period must be established not less than fifteen
(15) days prior to the Offering Date thereof.

      9.  Exercise of Options. Unless the Participant withdraws from the Plan
as provided in Section 11, the Participant's option for the purchase of shares
will be exercised automatically on each Exercise Date, and the maximum number of
full shares subject to such option shall be purchased for the Participant at the
applicable Exercise Price with the accumulated Plan Contributions then credited
the Participant's account under the Plan. During a Participant's lifetime, a
Participant's option to purchase shares hereunder is exercisable only by the
Participant.

      10. Delivery. As promptly as practicable after each Exercise Date, the
Company shall arrange for the delivery to each Participant (or the Participant's
beneficiary), as appropriate, or to a custodial account for the benefit of each
Participant (or the Participant's beneficiary) as appropriate, of a certificate
representing the shares purchased upon exercise of such Participant's option.
Any amount remaining to the credit of a Participant's account after the purchase
of shares by such Participant on an Exercise Date, or which is insufficient to
purchase a full share of Common Stock, shall be carried over to the next
Exercise Period if the Participant continues to participate in the Plan or, if
the Participant does not continue to participate, shall be returned to the
Participant.

      11.  Withdrawal; Termination of Employment.

            (a) A Participant may withdraw from the Plan at any time after the
Company's registration statement on Form S-8 with respect to the Plan is
effective by giving written notice to the Company. All of the Plan Contributions
credited to the Participant's account, if any, and not yet invested in Common
Stock will be paid to the Participant as soon as administratively practicable
after receipt of the Participant's notice of withdrawal, the Participant's
option to purchase shares pursuant

                                       7
<PAGE>
to the Plan automatically will be terminated, and no further payroll deductions,
if any have been authorized, for the purchase of shares will be made for the
Participant's account. Payroll deductions will not resume on behalf of a
Participant who has withdrawn from the Plan (a "Former Participant") unless the
Former Participant enrolls in a subsequent Offering Period in accordance with
Section 5(b).

            (b) Upon termination of the Participant's Continuous Status as an
Employee prior to any Exercise Date for any reason, including retirement or
death, the Plan Contributions credited to the Participant's account and not yet
invested in Common Stock will be returned to the Participant or, in the case of
death, to the Participant's beneficiary as determined pursuant to Section 14,
and the Participant's option to purchase shares under the Plan will
automatically terminate.

            (c) A Participant's withdrawal from an Offering Period will not have
any effect upon the Participant's eligibility to participate in succeeding
Offering Periods or in any similar plan which may hereafter be adopted by the
Company.

            (d) A Participant may elect at any time within the first thirty (30)
days of any Exercise Period to receive a distribution of cash from the Plan
equal to all or any portion of any amount credited to the Participant's account
as a carry over, pursuant to Section 10 of the Plan, of any remaining amounts
from the immediately preceding Exercise Period. A Participant who makes such
election shall not be treated as having withdrawn from the Plan solely by reason
of that election, and thus shall not as a result of that election be precluded
from participating in the Plan for the Offering Period in which the election is
made or in any subsequent Offering Period.

      12.  Stock.

            (a) Subject to adjustment as provided in Section 17, the maximum
number of shares of the Company's Common Stock that shall be made available for
sale under the Plan shall be One Million (1,000,000) shares, plus an automatic
annual increase on the first day of each of the Company's fiscal years beginning
in 2002 and ending in 2011 equal to the lesser of (i) Five Hundred Thousand
(500,000) shares, (ii) 1% of all shares of Common Stock outstanding on the last
day of the immediately preceding fiscal year, or (iii) a lesser amount
determined by the Board. Shares of Common Stock subject to the Plan may be newly
issued shares or shares reacquired in private transactions or open market
purchases. If and to the extent that any right to purchase reserved shares shall
not be exercised by any Participant for any reason or if such right to purchase
shall terminate as provided herein, shares that have not been so purchased
hereunder shall again become available for the purpose of the Plan unless the
Plan shall have been terminated, but all shares sold under the Plan, regardless
of source, shall be counted against the limitation set forth above.

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

            (c) Shares to be delivered to a Participant under the Plan will be
registered in the name of the Participant or in the name of the Participant and
his or her spouse, as requested by the Participant.

                                       8
<PAGE>
      13.  Administration.

            (a) The Plan shall be administered by the Committee. The Committee
shall have the authority to interpret the Plan, to prescribe, amend and rescind
rules and regulations relating to the Plan, and to make all other determinations
necessary or advisable for the administration of the Plan. The administration,
interpretation, or application of the Plan by the Committee shall be final,
conclusive and binding upon all persons.

            (b) Notwithstanding the provisions of Subsection (a) of this Section
13, in the event that Rule 16b-3 promulgated under the Exchange Act or any
successor provision thereto ("Rule 16b-3") provides specific requirements for
the administrators of plans of this type, the Plan shall only be administered by
such body and in such a manner as shall comply with the applicable requirements
of Rule 16b-3. Unless permitted by Rule 16b-3, no discretion concerning
decisions regarding the Plan shall be afforded to any person that is not
"disinterested" as that term is used in Rule 16b-3.

            (c) The Committee may adopt rules or procedures relating to the
operation and administration of the Plan to accommodate the specific
requirements of local laws and procedures. Without limiting the generality of
the foregoing, the Committee is specifically authorized to adopt rules and
procedures regarding handling of payroll deductions, payment of interest,
conversion of local currency, payroll tax, withholding procedures and handling
of stock certificates which vary with local requirements.

            (d) The Committee may also adopt sub-plans applicable to particular
Subsidiaries or locations, which sub-plans may be designed to be outside the
scope of Code Section 423. The rules of such sub-plans may take precedence over
other provisions of this Plan, with the exception of Section 12(a), but unless
otherwise superceded by the terms of such sub-plan, the provisions of this Plan
shall govern the operation of such sub-plan.

      14.  Designation of Beneficiary.

            (a) A Participant may file a written designation of a beneficiary
who is to receive any shares and cash, if any, from the Participant's account
under the Plan in the event of the Participant's death subsequent to an Exercise
Date on which the Participant's option hereunder is exercised but prior to
delivery to the Participant of such shares and cash. In addition, a Participant
may file a written designation of a beneficiary who is to receive any cash from
the Participant's account under the Plan in the event of the Participant's death
prior to the exercise of the option.

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

      15.  Transferability. Neither Plan Contributions credited to a
Participant's account nor any rights to exercise any option or receive shares of
Common Stock under the Plan may be

                                       9
<PAGE>
assigned, transferred, pledged or otherwise disposed of in any way (other than
by will or the laws of descent and distribution, or as provided in Section 14).
Any attempted assignment, transfer, pledge or other distribution shall be
without effect, except that the Company may treat such act as an election to
withdraw funds in accordance with Section 11.

      16.  Participant Accounts. Individual accounts will be maintained for
each Participant in the Plan to account for the balance of his Plan
Contributions and options issued and shares purchased under the Plan. Statements
of account will be given to Participants semi-annually in due course following
each Exercise Date, which statements will set forth the amounts of payroll
deductions, the per share purchase price, the number of shares purchased and the
remaining cash balance, if any.

      17.  Adjustments Upon Changes in Capitalization; Corporate Transactions.

            (a) If the outstanding shares of Common Stock are increased or
decreased, or are changed into or are exchanged for a different number or kind
of shares, as a result of one or more reorganizations, restructurings,
recapitalizations, reclassifications, stock splits, reverse stock splits, stock
dividends or the like, upon authorization of the Committee, appropriate
adjustments shall be made in the number and/or kind of shares, and the per-share
option price thereof, which may be issued in the aggregate and to any
Participant upon exercise of options granted under the Plan.

            (b) In the event of the proposed dissolution or liquidation of the
Company, the Offering Period will terminate immediately prior to the
consummation of such proposed action, unless otherwise provided by the
Committee. In the event of a proposed sale of all or substantially all of the
Company's assets, or the merger of the Company with or into another corporation
(each, a "Sale Transaction"), each option under the Plan shall be assumed or an
equivalent option shall be substituted by such successor corporation or a parent
or subsidiary of such successor corporation, unless the Committee determines, in
the exercise of its sole discretion and in lieu of such assumption or
substitution, to shorten the Exercise Period then in progress by setting a new
Exercise Date (the "New Exercise Date"). If the Committee shortens the Exercise
Period then in progress in lieu of assumption or substitution in the event of a
Sale Transaction, the Committee shall notify each Participant in writing, at
least ten (10) days prior to the New Exercise Date, that the exercise date for
such Participant's option has been changed to the New Exercise Date and that
such Participant's option will be exercised automatically on the New Exercise
Date, unless prior to such date the Participant has withdrawn from the Plan as
provided in Section 11. For purposes of this Section 17(b), an option granted
under the Plan shall be deemed to have been assumed if, following the Sale
Transaction, the option confers the right to purchase, for each share of option
stock subject to the option immediately prior to the Sale Transaction, the
consideration (whether stock, cash or other securities or property) received in
the Sale Transaction by holders of Common Stock for each share of Common Stock
held on the effective date of the Sale Transaction (and if such holders were
offered a choice of consideration, the type of consideration chosen by the
holders of a majority of the outstanding shares of Common Stock); provided, that
if the consideration received in the Sale Transaction was not solely common
stock of the successor corporation or its parent (as defined in Section 424(e)
of the Code), the Committee may, with the consent of the successor corporation
and the Participant, provide for the consideration to be received upon exercise
of the option to be solely common stock of the successor corporation or its
parent equal in fair market value to the per share consideration received by the
holders of Common Stock in the Sale Transaction.

                                       10
<PAGE>
            (c) In all cases, the Committee shall have sole discretion to
exercise any of the powers and authority provided under this Section 17, and the
Committee's actions hereunder shall be final and binding on all Participants. No
fractional shares of stock shall be issued under the Plan pursuant to any
adjustment authorized under the provisions of this Section 17.

      18.  Amendment of the Plan. The Board or the Committee may at any time,
or from time to time, amend the Plan in any respect; provided, that (i) no such
amendment may make any change in any option theretofore granted which adversely
affects the rights of any Participant and (ii) the Plan may not be amended in
any way that will cause rights issued under the Plan to fail to meet the
requirements for employee stock purchase plans as defined in Section 423 of the
Code or any successor thereto. To the extent necessary to comply with Rule 16b-3
under the Exchange Act, Section 423 of the Code, or any other applicable law or
regulation), the Company shall obtain shareholder approval of any such
amendment.

      19.  Termination of the Plan.

      The Plan and all rights of Employees hereunder shall terminate on the
earliest of:

            (a) the Exercise Date that Participants become entitled to purchase
a number of shares greater than the number of reserved shares remaining
available for purchase under the Plan;

            (b) such date as is determined by the Board in its discretion; or

            (c) the last Exercise Date immediately preceding the tenth (10th)
anniversary of the Plan's effective date.

      In the event that the Plan terminates under circumstances described in
Section 19(a) above, reserved shares remaining as of the termination date shall
be sold to Participants on a pro rata basis.

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

      21. Effective Date. Subject to adoption of the Plan by the Board, the Plan
shall become effective on the First Offering Date. The Board shall submit the
Plan to the shareholders of the Company for approval within twelve months after
the date the Plan is adopted by the Board.

      22. Conditions Upon Issuance of Shares.

            (a) The Plan, the grant and exercise of options to purchase shares
under the Plan, and the Company's obligation to sell and deliver shares upon the
exercise of options to purchase shares shall be subject to compliance with all
applicable federal, state and foreign laws, rules and regulations and the
requirements of any stock exchange on which the shares may then be listed.

            (b) The Company may make such provisions as it deems appropriate for
withholding by the Company pursuant to federal or state tax laws of such amounts
as the Company determines it is required to withhold in connection with the
purchase or sale by a Participant of any

                                       11
<PAGE>
Common Stock acquired pursuant to the Plan. The Company may require a
Participant to satisfy any relevant tax requirements before authorizing any
issuance of Common Stock to such Participant.

      23. Expenses of the Plan. All costs and expenses incurred in administering
the Plan shall be paid by the Company, except that any stamp duties or transfer
taxes applicable to participation in the Plan may be charged to the account of
such Participant by the Company.

      24. No Employment Rights. The Plan does not, directly or indirectly,
create any right for the benefit of any employee or class of employees to
purchase any shares under the Plan, or create in any employee or class of
employees any right with respect to continuation of employment by the Company,
and it shall not be deemed to interfere in any way with the Company's right to
terminate, or otherwise modify, an employee's employment at any time.

      25. Applicable Law. The laws of the State of California shall govern all
matter relating to this Plan except to the extent (if any) superseded by the
laws of the United States.

      26. Additional Restrictions of Rule 16b-3. The terms and conditions of
options granted hereunder to, and the purchase of shares by, persons subject to
Section 16 of the Exchange Act shall comply with the applicable provisions of
Rule 16b-3. This Plan shall be deemed to contain, and such options shall
contain, and the shares issued upon exercise thereof shall be subject to, such
additional conditions and restrictions as may be required by Rule 16b-3 to
qualify for the maximum exemption from Section 16 of the Exchange Act with
respect to Plan transactions.

                                       12

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