Document:

Prepared by MERRILL CORPORATION www.edgaradvantage.com

EXHIBIT 10.9  

MIPS TECHNOLOGIES, INC.

EMPLOYEE STOCK PURCHASE PLAN
  adopted by the Board of Directors on May 22, 1998

and approved by the Stockholder on May 22, 1998

(as amended August 27, 1998)

(as amended May 18, 1999 and approved by the Stockholders on October 28, 1999)

(as amended January 26, 2000) 

 
MIPS TECHNOLOGIES, INC.

EMPLOYEE STOCK PURCHASE PLAN

adopted by Board of Directors on May 22, 1998

and approved by Stockholder on May 22, 1998

(as amended August 27, 1998)

(as amended May 18, 1999 and approved by the Stockholders on October 28, 1999)

(as amended January 26, 2000)  

    The following constitutes the provisions of the MIPS Technologies, Inc. Employee Stock Purchase Plan. 

    1.  PURPOSE.
The purpose of the Plan is to provide employees of the Company and its Designated Subsidiaries with an opportunity to purchase Common Stock of the Company
through payroll deductions. It is believed that employee participation in ownership of the Company on this basis will be to the mutual benefit of the employees and the Company. It is the intention of
the Company that the Plan qualify as an "Employee Stock Purchase Plan" under Section 423 of the Code. The provisions of the Plan shall, accordingly, be construed so as to extend and limit
participation in a manner consistent with the requirements of that section of the Code. 

    2.  DEFINITIONS. 

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

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

    "Common Stock" means the Common Stock, $0.001 par value, of the Company. 

    "Company" means MIPS Technologies, Inc. 

    "Committee" means the committee appointed by and serving at the pleasure of the Board to administer the Plan pursuant to
Section 14. 

    "Compensation" means base pay, plus any amounts attributable to overtime, shift premium, incentive compensation, deferred compensation,
bonuses and commissions (exclusive of "spot bonuses" and any other such item specifically directed to Employees), designated by the Board, but shall exclude severance pay, pay in lieu of vacations,
back pay awards, disability benefits, or any other compensation excluded in the discretion of the Board. 

    Compensation
shall be determined before giving effect to any salary reduction agreement pursuant to a qualified cash or deferred arrangement within the meaning of
Section 401(k) of the Code, or to pursuant to a deferred election under a nonqualified deferred compensation plan. 

    "Continuous Status as an Employee" shall mean 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, provided that such leave is for a period of not more than
90 days or re-employment upon the expiration of such leave is guaranteed by contract or statute. 

    "Designated Subsidiaries" means the Subsidiaries which have been designated by the Board from time to time in its sole discretion as
eligible to participate in the Plan. 

    "Employee" means any person, including an officer, who is customarily employed for at least twenty (20) hours per week and more
than five (5) months in a calendar year by the Company or one of its Designated Subsidiaries. 

    "Exercise Date" means the last business day of each Exercise Period in an Offering Period. 

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    "Exercise Period" means a six-month period commencing on an Offering Date or on the first business day after any Exercise
Date in an Offering Period. 

    "Offering Date" means the first day of each Offering Period of the Plan. 

    "Offering Period" means a period of twenty-four (24) months consisting of four six-month Exercise
Periods during which options granted pursuant to the Plan may be exercised. 

    "Plan" means the MIPS Technologies, Inc. Employee Stock Purchase Plan. 

    "Subsidiary" means any corporation, domestic or foreign, in which the Company owns, directly or indirectly, 50% or more of the voting
shares. 

    3.  ELIGIBILITY. 

    (a) Any
person who is an Employee, as defined in Section 2, on the Offering Date of a given Offering Period shall be eligible to participate in such Offering
Period under the Plan, subject to the requirements of Section 5(a) and the limitations imposed by Section 423(b) of the Code. 

    (b) Notwithstanding
any provisions of the Plan to the contrary, no Employee shall be granted an option under the Plan if (i) immediately after the grant, such
Employee (or any other person whose stock ownership would be attributed to such Employee pursuant to Section 424(d) of the Code) would own
shares and/or hold outstanding options to purchase shares possessing five percent (5%) or more of the total combined voting power or value of all classes of shares of the Company or of any subsidiary
of the Company, or (ii) the rate of withholding under such option would permit the employee's rights to purchase shares under all employee stock purchase plans (described in Section 423
of the Code) of the Company and its subsidiaries to accrue (i.e., become exercisable) at a rate which exceeds Twenty-Five Thousand Dollars ($25,000) of fair market value of such shares
(determined at the time such option is granted) for each calendar year in which such option is outstanding at any time. 

    (c) Upon
reemployment of a former Employee, such former Employee will again be eligible to participate in the Plan, subject to the requirements of Section 5(a)
and the limitations imposed by Section 423(b) of the Code. 

    4.  OFFERING
PERIODS. The Plan shall be implemented by consecutive Offering Periods with a new Offering Period commencing on or about each May 1 or
November 1, provided, however, that the Offering Date of the initial Offering Period shall be June 10, 1998. If the Company cannot make an
offer under the Plan on or about any May 1 or November 1 because of restrictions imposed by law, the Company may make an offer as soon as practical after the expiration of such
restrictions. The Board or the Committee shall have the power to change the duration of Offering Periods with respect to future offerings without stockholder approval, if such change is announced at
least fifteen (15) days prior to the scheduled beginning of the first Offering Period to be affected. 

    5.  PARTICIPATION.

    (a) An
eligible Employee may become a participant in the Plan by completing a subscription agreement authorizing payroll deductions on the form provided by the Company
and filing it with the Company's payroll office prior to the Offering Date of the first Offering Period with respect to which it is to be effective, unless a later time for filing the subscription
agreement is set by the Board or Committee for all eligible Employees with respect to such Offering Period. Once enrolled, the Employee remains enrolled in each subsequent Offering Period of the Plan
at the designated payroll deduction unless the Employee withdraws by providing the Company with a written Notice of Withdrawal or files a new subscription agreement prior to the applicable Offering
Date changing the Employee's designated payroll deduction. An eligible Employee may participate in only one Offering Period at a time. 

2

 

    (b) Payroll deductions for a participant shall commence with the first payroll period following the Offering Date, or the first payroll following the date of valid
filing of the subscription agreement, whichever is later, and shall end when terminated by the participant as provided in Section 10. 

    6.  PAYROLL
DEDUCTIONS. 

    (a) At
the time a participant files his or her subscription agreement, he or she shall elect to have payroll deductions made on each payday during all subsequent
Offering Periods at a rate not exceeding ten percent (10%), or such other rate as may be determined from time to time by the Board, of the Compensation which he or she would otherwise receive on such
payday without regard to deferral elections. Notwithstanding the foregoing, for the initial Offering Period commencing on June 10, 1998, payroll deductions will not commence until the first
payday following the date that the registration statement for the initial public offering of the Common Stock becomes or is declared effective by the Securities and Exchange Commission under the
Securities Act of 1933 (the "IPO Effective Date"). The amount of initial payroll deductions in the period from June 10, 1998 to the IPO Effective
Date will, upon authorization by the participant, be deducted in two substantially equal payments during the first two payroll periods immediately following the IPO Effective Date and, thereafter,
payroll deductions will be made at the rate authorized by the participant in his or her initial subscription agreement. 

    (b) All
payroll deductions authorized by a participant shall be credited to his or her account under the Plan. A participant may not make any additional payments into
such account. 

    (c) A
participant may discontinue his or her participation in the Plan as provided in Section 10, or may change the rate of his or her payroll deductions during
an Offering Period by completing and filing with the Company a new authorization for payroll deduction, provided that the Board may, in its discretion, impose reasonable and uniform restrictions on
participants' ability to change the rate of payroll deductions. The change in rate shall be effective no later than fifteen (15) days following the Company's receipt of the new authorization. A
participant may decrease or increase the amount of his or her payroll deductions as of the beginning of an Offering Period by completing and filing with the Company, prior to the beginning of such
Offering Period, a new payroll deduction authorization. 

    (d) Notwithstanding
the foregoing, to the extent necessary, but only to such extent, to comply with Section 423(b)(8) of the Code and Section 3(b) herein,
a participant's payroll deductions may be automatically decreased to 0% at such time during any Exercise Period which is scheduled to end in the current calendar year that the aggregate of all payroll
deductions accumulated with respect to the applicable Offering Period and any other Offering Period ending within the same calendar year equals $25,000. Payroll deductions shall recommence at the rate
provided in such participant's subscription agreement at the beginning of the next succeeding Exercise Period, unless terminated by the participant as provided in Section 10. 

    7.  GRANT
OF OPTION. 

    (a) On
each Offering Date, each participant shall be granted an option to purchase on each Exercise Date (at the per share option price) a number of full shares of
Common Stock arrived at by dividing such participant's total payroll deductions to be accumulated prior to such Exercise Date and retained in the participant's account as of the Exercise Date by the
lower of (i) eighty-five percent (85%) of the fair market value of a share of Common Stock at the Offering Date, or (ii) eighty-five percent (85%) of the fair
market value of a share of Common Stock at the Exercise Date; provided, however, that the maximum number of shares a participant may purchase during each Offering Period shall be determined by
(i) dividing $50,000 by the fair market value of a share of Common Stock on the Offering Date for Offering Periods under the Plan commencing 

3

 

prior to May 18, 1999, or (ii) dividing $100,000 by the fair market value of a share of Common Stock on the Offering Date for all Offering Periods beginning on or after May 18,
1999; and provided further that such purchase shall be subject to the limitations set forth in Sections 3(b) and 12 hereof. The fair market value of a share of Common Stock shall be determined as
provided in Section 7(b) herein. 

    (b) The
option price per share of such shares shall be the lower of: (i) eighty-five percent (85%) of the fair market value of a share of Common
Stock at the Offering Date; or (ii) eighty-five percent (85%) of the fair market value of a share of Common Stock at the Exercise Date. The fair market value of a share of Common
Stock on said dates shall be determined by the Board, based upon such factors as the Board determines relevant; provided, however, that if there is a public market for the Common Stock, the fair
market value of a share of Common Stock on a given date shall be the closing price for the Common Stock as of such date; or, in the event that the Common Stock is listed on a national securities
exchange, the fair market value of a share of Common Stock shall be an amount equal to the closing sales price of a share of Common Stock on the exchange as of such date. 

    8.  EXERCISE
OF OPTION. 

    (a) Unless
a participant withdraws from the Offering Period as provided in Section 10, his or her option for the purchase of shares will be exercised
automatically at each Exercise Date, and the maximum number of full shares subject to option will be purchased at the applicable option price with the accumulated payroll deductions in his or her
account. The shares purchased upon exercise of an option hereunder shall be deemed to be transferred to the participant on the Exercise Date. 

    (b) During
his or her lifetime, a participant's option to purchase shares hereunder is exercisable only by the participant. 

    (c) The
Board may require, as a condition precedent to any purchase under the Plan, appropriate arrangements with the participant for the withholding of any applicable
Federal, state, local or foreign withholding or other taxes. 

    9.  DELIVERY.
As promptly as practicable after the Exercise Date of each Offering Period, the Company shall arrange for the shares purchased upon exercise of his or her
option to be electronically credited to the participant's designated brokerage account at one of the securities brokerage firms participating in the Company's direct deposit program from time to time.
Any cash remaining to the credit of a participant's account under the Plan after a purchase by him or her of shares at the Exercise Date of each Offering Period which merely represents a fractional
share shall be credited to the participant's account for the next subsequent Offering Period; any additional cash shall be returned to said participant. 

    10. WITHDRAWAL;
TERMINATION OF EMPLOYMENT. 

    (a) A
participant may withdraw all, but not less than all, the payroll deductions credited to his or her account under the Plan at any time prior to an Exercise Date by
giving written notice to the Company on a form provided for such purpose. If the participant withdraws from the Offering Period, all of the participant's payroll deductions credited to his or her
account will be paid to the participant as soon as practicable after receipt of the notice of withdrawal and his or her option for the current Offering Period will be automatically canceled, and no
further payroll deductions for the purchase of shares will be made during such Offering Period or subsequent Offering Periods, except pursuant to a new subscription agreement filed in accordance with
Section 6 hereof. 

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    (b) Upon termination of the participant's Continuous Status as an Employee prior to an Exercise Date of an Offering Period for any reason, including retirement or
death, the payroll deductions accumulated in his or her account will be returned to him or her as soon as practicable after such termination or, in the case of death, to the person or persons entitled
thereto under Section 14, and his or her option will be automatically canceled. 

    (c) In
the event an Employee fails to remain in Continuous Status as an Employee of the Company for at least twenty (20) hours per week during an Offering Period
in which the employee is a participant, he or she will be deemed to have elected to withdraw from the Plan, and the payroll deductions credited to his or her account will be returned to the
participant and the option canceled. 

    (d) A
participant's withdrawal from an Offering Period will not have any effect upon his or her eligibility to participate in a succeeding Offering Period by executing
and delivering to the Company a new payroll deduction form or in any similar plan which may hereafter be adopted by the Company. 

    11. AUTOMATIC
TRANSFER TO LOW PRICE OFFERING PERIOD. In the event that the fair market value of the Common Stock is lower on the first day of an Exercise Period (the
"Subsequent Exercise Period") than it was on the first Offering Date for that Offering Period (the "Initial Offering Period"), all participants in the Plan on the first day of the Subsequent Exercise
Period shall be deemed to have withdrawn from the Initial Offering Period on the first day of the Subsequent Exercise Period and to have enrolled as participants in a new Offering Period which begins
on or about that day. A participant may elect to remain in the Initial Offering Period by filing a written statement declaring such election with the Company prior to the time of the automatic change
to the new Offering Period. 

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

    13. STOCK. 

    (a) Subject
to adjustment upon changes in capitalization of the Company as provided in Section 19, the maximum number of shares of Common Stock which shall be
reserved for sale under the Plan shall be 600,000 shares, plus an annual increase to be added on July 1 of each year beginning July 1,
1999 equal to the lesser of: 

	(i)
	0.5%
of the total number of shares of Common Stock outstanding on a fully diluted basis as of the immediately preceding June 30;

	(ii)
	600,000
shares; or

	(iii)
	an
amount determined by the Board. 

If
the total number of shares which would otherwise be subject to options granted pursuant to Section 7(a) hereof on the Offering Date of an Offering Period exceeds the number of shares then
available under the Plan (after deduction of all shares for which options have been exercised or are then outstanding), the Company shall make a pro rata allocation of the shares remaining available
for option grant in as uniform and equitable a manner as is practicable. In such event, the Company shall give written notice of such reduction of the number of shares subject to the option to each
participant affected thereby and shall return any excess funds accumulated in each participant's account as soon as practicable after the affected Exercise Date of such Offering Period. Common Stock
to be sold to participants in the Plan may be, at the election of the Company, either treasury shares or shares authorized but unissued. 

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

5

 

    (c) Shares to be delivered to a participant under the Plan will be credited electronically to a brokerage account in the name of the participant at one of the brokerage
firms participating from time to time in the Company's direct deposit program. 

    14. ADMINISTRATION.
The Plan shall be administered by the Board or the Committee. The Board or the Committee shall have the authority to (i) make all factual
determinations in the administration or interpretation of the Plan, (ii) establish administrative regulations to further the purpose of the Plan, and (iii) take any other action
desirable or necessary to interpret, construe or implement properly the provisions of the Plan. The administration, interpretation or application of the Plan by the Board or the Committee shall be
final, conclusive and binding upon all participants. Members of the Board or the Committee who are eligible Employees are permitted to participate in the Plan, provided that: 

    (a) Members
of the Board who participate in the Plan may not vote on any matter affecting the administration of the Plan or the grant of any option pursuant to the
Plan. 

    (b) If
a Committee is established to administer the Plan, no member of the Board who participates in the Plan may be a member of the Committee. 

    15. DESIGNATION
OF BENEFICIARY. 

    (a) A
participant may file a written designation of a beneficiary who is to receive shares and/or cash, if any, from the participant's account under the Plan in
the event of such participant's death at a time when cash or shares are held for his or her account. 

    (b) Such
designation of beneficiary may be changed by the participant at any time by written notice. In the event of the death of a participant in the absence of a
valid designation of a beneficiary 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 reasonably designate. 

    16. RIGHTS
NOT TRANSFERABLE. Neither payroll deductions credited to a participant's account nor any rights with regard to the exercise of an option or to receive shares
under the Plan may be assigned, transferred, pledged or otherwise disposed of in any way (other than by will, the laws of descent and distribution, or as provided in Section 15 hereof) by the
participant. Any such attempt at assignment, transfer, pledge or other disposition shall be without effect, except that the Company may treat such act as an election to withdraw funds in accordance
with Section 10. 

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

    18. REPORTS.
Individual accounts will be maintained for each participant in the Plan. Statements of account will be given to participating Employees as soon as
practicable following each Exercise Date. Such 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. 

    19. ADJUSTMENTS
UPON CHANGES IN CAPITALIZATION. Subject to any required action by the stockholders of the Company, the number of shares of Common Stock covered by each
option under the Plan which has not yet been exercised and the number of shares of Common Stock which have been authorized for issuance under the Plan but have not yet been placed under option
(collectively, the "Reserves"), as well as the price per share of Common Stock covered by each option under the Plan which has not yet been exercised, shall be proportionately adjusted for any
increase or 

6

 

decrease in the number of issued shares of Common Stock resulting from a stock split, stock dividend, combination or reclassification of the Common Stock or any other increase or decrease in the
number of shares of Common Stock effected without receipt of consideration by the Company; provided, however, that conversion of any convertible securities of the Company shall not be deemed to have
been "effected without receipt of consideration." Such adjustment shall be made by the Board, whose determination in that respect shall be final, binding and conclusive. Except as expressly provided
herein, no issue by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall affect, and no adjustment by reason thereof shall be made with
respect to, the number or price of shares of Common Stock subject to option. 

    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 Board. In the event of a proposed sale of all or substantially all of the assets of the Company, or the merger of the Company with or into another corporation, each
outstanding option shall be assumed or an equivalent option substituted by the successor corporation or a parent or subsidiary of the successor corporation, In the event that the successor corporation
refuses to assume or substitute for the option, the Board may, in its discretion, shorten any Exercise Periods then in progress by setting a new Exercise Date (the "New Exercise Date") and any
Offering Periods then in progress shall end on the New Exercise Date. The New Exercise Date shall be before the date of the Company's proposed sale or merger. The Board shall notify each participant
in writing, at least ten (10) business days prior to the New Exercise Date, that the Exercise Date for the participant's option has been changed to the New Exercise Date and that the
participant's option shall be exercised automatically on the New Exercise Date, unless prior to such date the participant has withdrawn from the Offering Period as provided in Section 10
hereof. 

    The
Board may, if it so determines in the exercise of its sole discretion, also make provision for adjusting the Reserves, as well as the price per share of Common Stock covered by
each outstanding option, in the event that the Company effects one or more reorganizations, recapitalizations, rights offerings or other increases or reductions of shares of its outstanding Common
Stock, and in the event of the Company being consolidated with or merged into any other corporation. 

    20. AMENDMENT
OR TERMINATION. The Board may at any time and for any reason terminate or amend the Plan. Except as provided in Section 19 and this
Section 20, no such termination will affect options previously granted. Except as provided in Section 19 and this Section 20, no amendment may make any change in any option
theretofore granted which adversely affects the rights of any participant. In addition, to the extent necessary, but only to such extent, to comply with Section 423 of the Code (or any
successor rule or provision or any other applicable law or regulation), the Company shall obtain stockholder approval of an amendment in such a manner and to such a degree as so required. 

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

7

 

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

    (1) altering
the purchase price for any Offering Period including an Offering Period underway at the time of the change in purchase price; 

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

    (3) allocating
shares. 

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

    21. NOTICES.
All notices or other communications by a participant to the Company 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. Notices given electronically by the Company will be deemed to be written notices
under the Plan. 

    22. STOCKHOLDER
APPROVAL. The Plan was adopted by the Board on May 22, 1998 and approved by the shareholders of the Company on May 22, 1998 in accordance
with the requirements of Section 423(b)(2) of the Code. 

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

    As
a condition to the exercise of an option, if required by applicable securities laws, the Company may require the participant for whose account the option is being exercised to
represent and warrant at the time of such exercise that the shares are being purchased only for investment and without any present intention to sell or distribute such shares if, in the opinion of
counsel for the Company, such a representation is required by any of the aforementioned applicable provisions of law. 

    24. NO
RIGHT TO EMPLOYMENT. Nothing shall confer upon any employee of the Company any right to continued employment with the Company any right to continued employment
with the Company or interfere in any way with the right of the Company to terminate the employment of any of its employees at any time, with or without cause. 

    25. TERM
OF PLAN. The Plan shall remain in effect until May 22, 2008, unless terminated earlier in accordance with Section 20. 

    26. GOVERNING
LAW. All rights and obligations under the Plan shall be construed and interpreted in accordance with the laws of the State of Delaware, without giving
effect to principles of conflicts of laws. 

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	MIPS Technologies Inc.	 	EMPLOYEE STOCK PURCHASE PLAN

SUBSCRIPTION AGREEMENT
	

	EMPLOYEE LAST NAME   FIRST NAME   MI	 	SOCIAL SECURITY #	 	EMPLOYEE #
	 	 	 	 	 	 	 
	

	DAYTIME TELEPHONE NUMBER	 	OFFICE LOCATION
	 	 	 	 	 	 	 
	

	/ / ORIGINAL APPLICATION	 	/ / CHANGE

	1.
	I
hereby elect to participate in each Offering Period of the MIPS Technologies Inc. Employee Stock Purchase Plan (the "Plan") beginning subsequent to the date set forth below
and subscribe to purchase shares of Common Stock of MIPS Technologies Inc. (the "Company") in accordance with this Agreement and the Plan.

	2.
	I
hereby authorize payroll deductions from each paycheck during each Offering Period in the amount of (1% to 10%, whole percentages only)            % of my compensation
(including base pay and, to the extent applicable, any amounts attributable to overtime, shift premium, incentive compensation, bonuses and commissions) in accordance with the Plan.

	3.
	I
understand that said payroll deductions shall be accumulated for the purchase of shares in accordance with the Plan, and that shares will be purchased for me automatically at the
end of each six-month Exercise Period unless I withdraw from the Plan by giving written notice to the Company. I authorize the Company to carry over to the next Exercise Period or Offering
Period any Cash insufficient to purchase a share of Common Stock.

	4.
	I
have received a copy of the Company's most recent prospectus which describes the Plan and a copy of the complete "MIPS Technologies Inc. Employee Stock Purchase Plan." I
understand that my participation in the Plan is in all respects subject to the terms of the Plan.

	5.
	I
hereby agree to be bound by the terms of the Plan. The effectiveness of this Subscription Agreement is dependent upon my eligibility to participate in the Plan.

	6.
	In
the event of my death, I hereby designate the following to be my beneficiary(ies) to receive all payments and shares due me under the Plan.

	!
	Same
Beneficiaries as designated on prior Subscription Agreement

	!
	Original
designation or change as set forth below: 

	

	Beneficiary(ies) Full Name(s)	 	Relationship	 	% Of Proceeds
	

	 	 	 	 	 
	

	 	 	 	 	 
	

	 	 	 	 	 
	

	7.
	I
agree that the shares I purchase through the MIPS Technologies Inc. Employee Stock Purchase Plan (ESPP) will be electronically transferred to a brokerage firm for credit to
an account set up under my name. Broker selection and additional information may be found on the Company's internal website or obtained from the Benefits Department. 

	
 Employee Signature	 	
 Date
	

 Human Resources Signature	
 	

 Date

PLEASE RETURN FORM TO Trish Leeper / HR 

1Prepared by MERRILL CORPORATION www.edgaradvantage.com

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EXHIBIT 10.12  

 
 

    MIPS TECHNOLOGIES, INC.
  NONQUALIFIED DEFERRED COMPENSATION PLAN    
  

Effective
as of January 1, 2000 

 
MIPS TECHNOLOGIES, INC.

NONQUALIFIED DEFERRED COMPENSATION PLAN
  Effective as of January 1, 2000
 TABLE OF CONTENTS  

	 
	 	 
	 	 

	
ARTICLE 1: DEFINITIONS
	1.1	 	ACCOUNT	 	1
	1.2	 	BENEFICIARY	 	1
	1.3	 	CODE	 	1
	1.4	 	COMPENSATION	 	1
	1.5	 	COMPENSATION DEFERRAL ACCOUNT	 	1
	1.6	 	COMPENSATION DEFERRALS	 	1
	1.7	 	DESIGNATION DATE	 	1
	1.8	 	DIRECTOR	 	1
	1.9	 	EFFECTIVE DATE	 	1
	1.10	 	ELIGIBLE EMPLOYEE	 	1
	1.11	 	EMPLOYER	 	2
	1.12	 	EMPLOYER CONTRIBUTION CREDIT ACCOUNT	 	2
	1.13	 	ENTRY DATE	 	2
	1.14	 	FORM AND TIMING OF PAYMENT ELECTION FORM	 	2
	1.15	 	PARTICIPANT	 	2
	1.16	 	PLAN	 	2
	1.17	 	PLAN COMMITTEE	 	2
	1.18	 	PLAN YEAR	 	3
	1.19	 	SALARY OR BONUS REDUCTION ELECTION FORM	 	2
	1.20	 	SURVIVOR BENEFIT	 	2
	1.21	 	TOTAL AND PERMANENT DISABILITY	 	2
	1.22	 	TRUST	 	2
	1.23	 	TRUSTEE	 	2
	1.24	 	VALUATION DATE	 	2
	
ARTICLE 2: ELIGIBILITY AND PARTICIPATION
	2.1	 	REQUIREMENTS	 	3
	2.2	 	RE-EMPLOYMENT	 	3
	2.3	 	CHANGE OF EMPLOYMENT CATEGORY	 	3
	
ARTICLE 3: CONTRIBUTIONS AND CREDITS
	3.1	 	PARTICIPANT CONTRIBUTIONS AND CREDITS	 	3
	 	 	(a)  Compensation Deferrals	 	3
	 	 	(b)  The Participant's Compensation Deferral Account	 	3
	3.2	 	CONTRIBUTIONS TO THE TRUST	 	4
	
ARTICLE 4: ALLOCATION OF FUNDS
	4.1	 	ALLOCATION OF DEEMED EARNINGS OR LOSSES ON ACCOUNTS	 	4
	4.2	 	ACCOUNTING FOR DISTRIBUTIONS	 	4
	4.3	 	SEPARATE ACCOUNTS	 	4
	4.4	 	INTERIM VALUATIONS	 	4

i

 

	4.5	 	DEEMED INVESTMENT DIRECTIONS OF PARTICIPANTS	 	4
	4.6	 	EXPENSES AND TAXES	 	5
	
ARTICLE 5: ENTITLEMENT TO BENEFITS
	5.1	 	FIXED PAYMENT DATES; TERMINATION OF EMPLOYMENT	 	5
	5.2	 	IMMEDIATE DISTRIBUTION ELECTION; TEN PERCENT PENALTY	 	6
	5.3	 	HARDSHIP DISTRIBUTIONS	 	6
	5.4	 	RE-EMPLOYMENT OF RECIPIENT	 	7
	
ARTICLE 6: DISTRIBUTION OF BENEFITS
	6.1	 	AMOUNT	 	7
	6.2	 	METHOD OF PAYMENT	 	7
	6.3	 	DEATH OR DISABILITY BENEFITS	 	7
	
ARTICLE 7: BENEFICIARIES; PARTICIPANT DATA
	7.1	 	DESIGNATION OF BENEFICIARIES	 	8
	7.2	 	INFORMATION TO BE FURNISHED BY PARTICIPANTS AND BENEFICIARIES; INABILITY TO LOCATE PARTICIPANTS OR BENEFICIARIES	 	8
	
ARTICLE 8: ADMINISTRATION
	8.1	 	ADMINISTRATIVE AUTHORITY	 	8
	8.2	 	LITIGATION	 	9
	8.3	 	CLAIMS PROCEDURE	 	9
	
ARTICLE 9: AMENDMENT
	9.1	 	RIGHT TO AMEND	 	10
	9.2	 	AMENDMENTS TO ENSURE PROPER CHARACTERIZATION OF PLAN	 	10
	9.3	 	STATUS OF PARTICIPANTS	 	10
	
ARTICLE 10: TERMINATION
	10.1	 	EMPLOYER'S RIGHT TO TERMINATE OR SUSPEND PLAN	 	10
	10.2	 	AUTOMATIC TERMINATION OF PLAN	 	11
	10.3	 	SUSPENSION OF DEFERRALS	 	11
	10.4	 	ALLOCATION AND DISTRIBUTION	 	11
	10.5	 	SUCCESSOR TO EMPLOYER	 	11
	
ARTICLE 11: THE TRUST
	11.1	 	ESTABLISHMENT OF TRUST	 	11
	
ARTICLE 12: MISCELLANEOUS
	12.1	 	LIMITATIONS ON LIABILITY OF EMPLOYER	 	11
	12.2	 	CONSTRUCTION	 	12
	12.3	 	SPENDTHRIFT PROVISION	 	12

ii

 
MIPS TECHNOLOGIES, INC.

NONQUALIFIED DEFERRED COMPENSATION PLAN
  Effective as of January 1, 2000
 RECITALS  

    This MIPS Technologies, Inc. Nonqualified Deferred Compensation Plan (the "Plan") is adopted by MIPS Technologies, Inc. (the "Employer") for
certain of its eligible employees on the U.S. payroll. The purpose of the Plan is to offer those employees an opportunity to elect to defer the receipt of compensation in order to provide
post-employment and related benefits taxable pursuant to section 451 of the Internal Revenue Code of 1986, as amended (the "Code"). The Plan is intended to be a
"top-hat" plan (i.e., an unfunded deferred compensation plan maintained for a select group of management or highly-compensated employees) under sections 201(2), 301(a)(3) and 401(a)(1) of
the Employee Retirement Income Security Act of 1974 ("ERISA"). 

    Accordingly,
the following Plan is adopted. 

 
 

ARTICLE 1
  DEFINITIONS    
  

    1.1  ACCOUNT means the balance credited to a Participant's or Beneficiary's Plan account, including amounts credited
under the Compensation Deferral and the Employer Contribution Credit Account and deemed income, gains and losses (as determined by the Employer, in its discretion) credited thereto. A Participant's or
Beneficiary's Account shall be determined as of the date of reference. 

    1.2  BENEFICIARY means any person or persons so designated in accordance with the provisions of Article 7. 

    1.3  CODE means the Internal Revenue Code of 1986 and the regulations thereunder, as amended from time to time. 

    1.4  COMPENSATION means the total current cash remuneration, including regular salary and bonus awards, paid by the
Employer to an Eligible Employee with respect to his or her service for the Employer (as determined by the Employer, in its discretion). 

    1.5  COMPENSATION DEFERRAL ACCOUNT is defined in Section 3.1(b). 

    1.6  COMPENSATION DEFERRALS is defined in Section 3.1(a). 

    1.7  DESIGNATION DATE means the date or dates as of which a designation of deemed investment directions by an individual
pursuant to Section 4.5, or any change in a prior designation of deemed investment directions by an individual pursuant to Section 4.5, shall become effective. The Designation Dates in
any Plan Year shall be designated by the Employer. 

    1.8  DIRECTOR is defined as a person in a position defined as Director level by the Company's Human Resources
guidelines. 

    1.9  EFFECTIVE DATE means the effective date of the Plan, which shall be January 1, 2000. 

    1.10  ELIGIBLE EMPLOYEE means, for any Plan Year (or applicable portion thereof), a person employed by the Employer on
the U.S. payroll as a Director (or above), who is determined by the Employer to be a member of a select group of management or highly compensated employees under the Plan. By each December 1
(or before the Effective Date for the Plan's first Plan Year), the Employer shall notify those individuals, if any, who will be Eligible Employees for the next Plan Year. If the Employer determines
that an individual first becomes an Eligible Employee during a Plan Year, 

1

 

the Employer shall notify such individual of its determination and of the date during the Plan Year on which the individual shall first become an Eligible Employee. 

    1.11  EMPLOYER means MIPS Technologies, Inc. and its successors and assigns unless otherwise herein provided, or
any other corporation or business organization which, with the consent of MIPS Technologies, Inc., or its successors or assigns, assumes the Employer's obligations hereunder, or any
other corporation or business organization which agrees, with the consent of MIPS Technologies, Inc., to become a party to the Plan. 

    1.12  EMPLOYER CONTRIBUTION CREDIT ACCOUNT is defined in Section 3.2. 

    1.8  ENTRY DATE with respect to an individual means 30 days following the date on which the individual first
becomes an Eligible Employee. 

    1.9  FORM AND TIMING OF PAYMENT ELECTION FORM means the form or forms on which a Participant elects the form and timing
of the Participant's Plan benefit. 

    1.10  PARTICIPANT means any person so designated in accordance with the provisions of Article 2, including, where
appropriate according to the context of the Plan, any former employee who is or may become (or whose Beneficiaries may become) eligible to receive a benefit under the Plan. 

    1.11  PLAN means this MIPS Technologies, Inc. Nonqualified Deferred Compensation Plan, as amended from time to
time. 

    1.17  PLAN COMMITTEE or "Committee" refers to the officers and employees of the Company who act on behalf of the Company
in discharging the Company's duties as the Plan Administrator. Notwithstanding any other provision of the Plan document, any member of the Committee or any other officer or employee of the Company who
exercises discretion or authority on behalf of the Company shall not be a fiduciary of the Plan merely by virtue of his or her exercise of such discretion or authority. The Vice President of Human
Resources & Administration shall identify the Company officers and employees who shall serve as members of the Committee. Absent a designation to the contrary, the Chief Executive Officer shall
act on behalf of the Company and the Committee. Because this Plan is a "top hat" arrangement, the Committee shall not be subject to the duties imposed by the provisions of Part 4 of Title I of
ERISA. 

    1.18  PLAN YEAR means the twelve (12) month period ending on December 31 of each year during which the
Plan is in effect. 

    1.19  SALARY OR BONUS REDUCTION ELECTION FORM means the form or forms on which a Participant elects to defer
Compensation hereunder and on which the Participant makes certain other designations as required thereon. 

    1.20  SURIVOR BENEFIT means the scheduled benefit payable to the Participant's Beneficiary. 

    1.21  TOTAL AND PERMANENT DISABILITY means the inability to perform the material duties of your regular occupation by
reason of any medically determinable physical or mental impairment that may be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than
12 months. The permanence and degree of such impairment shall be supported by medical evidence. Disability will be determined to exist if the Participant is receiving disability benefits under
the Social Security Act or Railroad Retirement Act. 

    1.22  TRUST means the Trust described in Article 11. 

    1.23  TRUSTEE means the trustee of the Trust described in Article 11. 

    1.24  VALUATION DATE means the last day of each Plan Year and any other date that the Employer, in its sole discretion,
designates as a Valuation Date. 

2

 
 
 

ARTICLE 2
  ELIGIBILITY AND PARTICIPATION    
  

    2.1  REQUIREMENTS. Every Eligible Employee on the Effective Date shall be eligible to become a Participant on the
Effective Date. Every other Eligible Employee shall be eligible to become a Participant on the first Entry Date occurring on or after the date on which he or she becomes an Eligible Employee. No
individual shall become a Participant, however, if he or she is not an Eligible Employee on the date his or her participation is to begin. 

    2.2  RE-EMPLOYMENT. If a Participant whose employment with the Employer is terminated is subsequently
re-employed, he or she shall become a Participant in accordance with the provisions of Section 2.1. 

    2.3  CHANGE OF EMPLOYMENT CATEGORY. During any period in which a Participant remains in the employ of the Employer, but
ceases to be an Eligible Employee, he or she shall not be eligible to make Compensation Deferrals hereunder. 

 
 

ARTICLE 3
  CONTRIBUTIONS AND CREDITS    
  

    3.1  PARTICIPANT CONTRIBUTIONS AND CREDITS.

    (a) Compensation Deferrals. In accordance with rules established by the Employer, a Participant may elect to defer
Compensation which is due to be earned and which would otherwise be paid to the Participant, in a lump sum or in any fixed periodic dollar amounts designated by the Participant. Amounts so deferred
will be considered a Participant's "Compensation Deferrals." Ordinarily, a Participant shall make such an election with respect to the coming twelve (12) month Plan Year during the period
beginning on December 1 and ending on December 31 of the prior calendar year, or during such other period as might be established by the Employer. 

        Compensation
Deferrals shall be made through regular payroll deductions or through an election by the Participant to defer the payment of a bonus not yet payable to
him or her at the time of the election. The Participant may change his or her regular payroll deduction Compensation Deferral amount as of, and by written notice delivered to the Employer prior to,
the beginning of any calendar quarter, with such change being first effective for Compensation to be earned in the next calendar quarter. In the case of bonus payment deferrals, the Participant may
defer up to the eligible portion of his or her bonus due to be paid by the Employer by delivering written notice to the Employer of the bonus Compensation deferral amount at least 90 days prior
to the date the applicable bonus is first due to be paid. 

        Once
made, a Compensation Deferral regular payroll deduction election shall continue in force indefinitely, until changed as provided above. A Compensation Deferral
bonus payment election shall continue in force only for the Plan Year for which the election is first effective. Compensation
Deferrals shall be deducted by the Employer from the pay of a deferring Participant and shall be credited to the Compensation Deferral Account of the deferring Participant. 

    (b) The Participant's Compensation Deferral Account. There shall be established and maintained by the Employer a
separate Compensation Deferral Account in the name of each Participant to which shall be credited or debited: (a) amounts equal to the Participant's Compensation Deferrals; (b) amounts
equal to any earnings or losses attributable or allocable thereto. 

        A
Participant shall at all times be 100% vested in amounts credited to his or her Compensation Deferral Account. 

3

 

    3.2  CONTRIBUTIONS TO THE TRUST. An amount shall be contributed by the Employer to the Trust maintained under
Section 11.1 equal to the amount(s) required to be credited to the Participant's Account under Sections 3.1. The Employer shall make a good faith effort to contribute these amounts to the Trust
as soon as practicable. 

 
 

ARTICLE 4
  ALLOCATION OF FUNDS    
  

    4.1  ALLOCATION OF DEEMED EARNINGS OR LOSSES ON ACCOUNTS. Subject to Section 4.5, each Participant shall have the
right to direct the Employer as to how amounts in his or her Plan Account shall be deemed to be invested. Subject to such limitations as may from time to time be required by law, imposed by the
Employer or the Trustee or contained elsewhere in the Plan, and subject to such operating rules and procedures as may be imposed from time to time by the Plan Committee, prior to the date on which a
direction will become effective, the Participant shall have the right to direct the Employer as to how amounts in his or her Account shall be deemed to be invested. The Employer shall direct the
Trustee to invest the account maintained in the Trust on behalf of the Participant pursuant to the deemed investment directions the Employer properly has received from the Participant. 

        The
value of the Participant's Account shall be equal to the value of the Account maintained under the Trust on behalf of the Participant. As of each Valuation Date
of the Trust, the Participant's Account
will be credited or debited to reflect the Participant's deemed investments of the Trust. The Participant's Plan Account will be credited or debited with the increase or decrease in the realizable net
asset value or credited interest, as applicable, of the designated deemed investments, as follows. As of each Valuation Date, an amount equal to the net increase or decrease in realizable net asset
value or credited interest, as applicable (as determined by the Trustee), of each deemed investment option within the Account since the preceding Valuation Date shall be allocated among all
Participants' Accounts deemed to be invested in that investment option in accordance with the ratio which the portion of the Account of each Participant which is deemed to be invested within that
investment option, determined as provided herein, bears to the aggregate of all amounts deemed to be invested within that investment option. 

    4.2  ACCOUNTING FOR DISTRIBUTIONS. As of the date of any distribution hereunder, the distribution made hereunder to the
Participant or his or her Beneficiary or Beneficiaries shall be charged to such Participant's Account. Such amounts shall be charged on a pro rata basis against the investments of the Trust in which
the Participant's Account is deemed to be invested. 

    4.3  SEPARATE ACCOUNTS. A separate bookkeeping account under the Plan shall be established and maintained by the
Employer to reflect the Account for each Participant with bookkeeping sub-accounts to show separately the Participant's Compensation Deferral Account. Each sub-account will
separately account for the credits and debits described in Article 3. 

    4.4  INTERIM VALUATIONS. If it is determined by the Employer that the value of a Participant's Account as of any date on
which distributions are to be made differs materially from the value of the Participant's Account on the prior Valuation Date upon which the distribution is to be based, the Employer, in its
discretion, shall have the right to designate any date in the interim as a Valuation Date for the purpose of revaluing the Participant's Account so that the Account will, prior to the distribution,
reflect its share of such material difference in value. 

    4.5  DEEMED INVESTMENT DIRECTIONS OF PARTICIPANTS. Subject to such limitations as may from time to time be required by
law, imposed by the Employer or the Trustee or contained elsewhere in the Plan, and subject to such operating rules and procedures as may be imposed from time to time by the Plan Committee, prior to
and effective for each Designation Date, each Participant may communicate to the Employer a direction (in accordance with (a), below) as to how his or her 

4

 

Plan Accounts should be deemed to be invested among such categories of deemed investments as may be made available by the Employer hereunder. Such direction shall designate the percentage (in any
whole percent multiples or whole dollar amounts eligible) of each portion of the Participant's Plan
Accounts which is requested to be deemed to be invested in such categories of deemed investments, and shall be subject to the following rules: 

    (a) Any
initial or subsequent deemed investment direction shall be in writing, on a form supplied by and filed with the Employer, and/or, as required or permitted by
the Employer. A designation shall be effective as of the Designation Date next following the date the direction is received and accepted by the Employer on which it would be reasonably practicable for
the Employer to effect the designation. 

    (b) All
amounts credited to the Participant's Account shall be deemed to be invested in accordance with the then effective deemed investment direction, and as of the
Designation Date with respect to any new deemed investment direction, all or a portion of the Participant's Account at that date shall be reallocated among the designated deemed investment funds
according to the percentages specified in the new deemed investment direction unless and until a subsequent deemed investment direction shall be filed and become effective. An election concerning
deemed investment choices shall continue indefinitely as provided in the Participant's most recent investment direction form provided by and filed with the Employer. 

    (c) If
the Employer receives an initial or revised deemed investment direction which it deems to be incomplete, unclear or improper, the Participant's investment
direction then in effect shall remain in effect (or, in the case of a deficiency in an initial deemed investment direction, the Participant shall be deemed to have filed no deemed investment
direction) until the next Designation Date, unless the Employer provides for, and permits the application of, corrective action prior thereto. 

    (d) If
the Employer possesses (or is deemed to possess as provided in (c), above) at any time directions as to the deemed investment of less than all of a Participant's
Account, the Participant shall be deemed to have directed that the undesignated portion of the Account be deemed to be invested in a money market, fixed income or similar fund made available under the
Plan as determined by the Employer in its discretion. 

    (e) Each
Participant hereunder, as a condition to his or her participation hereunder, agrees to hold the Employer and its agents and representatives harmless, for any
losses or damages of any kind relating to the investment of the Participant's Account hereunder, other than such losses or damages that result directly from gross negligence or intentional malfeasance
on the part of the Employer or its agents or representatives. 

    (f)  Each
reference in this Section to a Participant shall be deemed to include, where applicable, a reference to a Beneficiary. 

    4.6  EXPENSES AND TAXES. Expenses, including Trustee fees, associated with the administration or operation of the Plan
shall be paid by the Employer from its general assets. Any taxes allocable to an Account (or portion thereof) maintained under the Plan which are payable prior to the distribution of the Account (or
portion thereof), as determined by the Employer, shall be paid by the Employer. 

 
 

ARTICLE 5
  ENTITLEMENT TO BENEFITS    
  

    5.1  FIXED PAYMENT DATES; TERMINATION OF EMPLOYMENT. On his or her Form and Timing of Payment Election Form, a
Participant may select a fixed payment date for the payment or commencement of payment of his or her Account (or the Participant may select fixed payment dates 

5

 

for the payment or commencement of payment of portions of his or her Account), which will be valued and payable according to the provisions of Article 6. Such payment dates may be extended to
later dates so long as elections to so extend the dates are made by the Participant at least six (6) months prior to the date on which the distribution is to be made or commence. Such payment
dates may not be accelerated, except as provided in Section 5.2. 

        A
Participant who selects payment or commencement of payment of his or her Account (or portions thereof) on a fixed date or dates shall receive payment of his or her
Account at the earlier of such fixed payment date or dates (as extended, if applicable) or his or her termination of employment with the Employer. 

        The
date must be a date after at least 2 full calendar years following the calendar year in which the Form and Timing of Payment Election is executed. 

        If
a Participant does not make an election as provided above for any particular amounts hereunder, and the Participant terminates employment with the Employer for any
reason, the Participant's Account at the date of such termination shall be valued and payable at or commencing at such termination according to the provisions of Article 6. 

    5.2  IMMEDIATE DISTRIBUTION ELECTION; TEN PERCENT PENALTY. In addition to a Participant's option to have payment or
commencement of payment of his or her account occur on the fixed payment date described in Section 5.1 or on the Participant's termination of employment as described in Section 5.1, a
Participant may elect to have his or her Account (or a portion thereof) paid or commence to be paid as soon as possible upon his or her election. For purposes of this Section, the value of the
Participant's Account shall be determined as of the date of the distribution. Any amount paid pursuant to this Section shall be subject to a ten percent (10%) penalty, with the amount of the penalty
being returned to the Employer. In the event of an immediate distribution elected under this Section, the ten percent (10%) penalty on the entire portion of the account to be distributed under this
Section shall be returned to the Employer on or about the date of the distribution. 

        Any
Participant wishing to elect an immediate distribution pursuant to this Section must complete an Immediate Distribution Election Form and receive approval from
the Company. The distribution shall occur or commence as soon as is administratively feasible following the Employer's receipt of the Immediate Distribution Election Form. 

    5.3  HARDSHIP DISTRIBUTIONS. In the event of financial hardship of the Participant, as hereinafter defined, the
Participant may apply to the Plan Committee for the distribution of all or any part of his or her Account. The Plan Committee shall consider the circumstances of each such case, and the best interests
of the Participant and his or her family, and shall have the right, in its sole discretion, if applicable, to allow such distribution, or, if applicable, to direct a distribution of part of the amount
requested, or to refuse to allow any distribution. Upon a finding of financial hardship, the Plan Committee shall make the appropriate distribution to the Participant from amounts held by the Plan
Committee in respect of the Participant's Account. In no event shall the aggregate amount of the distribution exceed either the full value of the Participant's Account or the amount determined by the
Plan Committee to be necessary to alleviate the Participant's financial hardship (which financial hardship may be considered to include any taxes due because of the distribution occurring because of
this Section), and which is not reasonably available from other resources of the Participant. For purposes of this Section, the value of the Participant's Account shall be determined as of the date of
the distribution. "Financial hardship" means (a) a severe financial hardship to the Participant resulting from a sudden and unexpected illness or accident of the Participant or of a dependent
(as defined in Code section 152(a)) of the Participant, (b) loss of the Participant's property due to casualty, or (c) other similar extraordinary and unforeseeable circumstances
arising as a result of events beyond the control of the Participant, each as determined to exist by the Plan Committee. A distribution may be made under this Section only with the consent of the Plan
Committee. 

6

 

    5.4  RE-EMPLOYMENT OF RECIPIENT. If a Participant receiving installment distributions pursuant to
Section 6.2 is re-employed by the Employer, the remaining distributions due to the Participant shall be suspended until such time as the Participant (or his or her Beneficiary) once
again becomes eligible for
benefits under Section 5.1 or 5.2, at which time such distribution shall commence, subject to the limitations and conditions contained in this Plan. 

 
 

ARTICLE 6
  DISTRIBUTION OF BENEFITS    
  

    6.1  AMOUNT. A Participant (or his or her Beneficiary) shall become entitled to receive, on or about earlier of the
Participant's termination of employment with the Employer or the date or dates selected by the Participant on his or her Form and Timing of Payment Election Form (or, if no such selection is made, on
or about the date of the Participant's termination of employment with the Employer), a distribution in an aggregate amount equal to the Participant's Account. A Participant may alternatively elect to
receive an immediate distribution, subject to a ten percent (10%) penalty, of all or a portion of his or her Account pursuant to Section 5.2. Any payment due hereunder from the Trust which is
not paid by the Trust for any reason will be paid by the Employer from its general assets. 

    6.2  METHOD OF PAYMENT.

    (a) Payments. Payments under the Plan shall be made as elected by the Participant and as permitted by the Employer in
its sole and absolute discretion and subject to applicable restrictions on transfer as may be applicable legally or contractually. 

    (b) Timing and Manner of Payment. In the case of distributions to a Participant or his or her Beneficiary by virtue of
an entitlement pursuant to Sections 5.1 or 5.2, an aggregate amount equal to the Participant's Account will be paid by the Trust or the Employer, as soon as is administratively feasible, in a lump sum
or in up to ten (10) substantially equal annual installments (adjusted for gains and losses), as selected by the Participant as provided in Article 5. If a Participant fails to designate
properly the manner of payment of the Participant's benefit under the Plan, such payment will be in a lump sum. 

        If
the whole or any part of a payment hereunder is to be in installments, the total to be so paid shall continue to be deemed to be invested pursuant to Sections 4.1
and 4.5 under such procedures as the Employer may establish, in which case any deemed income, gain, loss or expense or tax allocable thereto (as determined by the Trustee, in its discretion) shall be
reflected in the installment payments, in such equitable manner as the Trustee shall determine. 

    6.3  DEATH OR DISABILITY BENEFITS.

    (a) Disability Benefits. If a Participant experiences a Total and Permanent Disability before terminating his or her
employment with the Employer, the entire value of the Participant's Account shall be paid, at the time(s) selected by the Participant under Section 5.1 and in the manner provided in
Section 6.2, to the person or persons designated in accordance with Section 7.1. 

    (b) Death Benefits. If a Participant dies before terminating his or her employment with the Employer, and before the
commencement of payments to the Participant hereunder, the Beneficiary shall receive the Survivor Benefit. 

    Upon
the death of a Participant after payments hereunder have begun but before he or she has received all payments to which he or she is entitled under the Plan, the remaining benefit
payments shall be paid to the person or persons designated in accordance with Section 7.1, in the manner in which such benefits were payable to the Participant. 

7

 
 
 

ARTICLE 7
  BENEFICIARIES; PARTICIPANT DATA    
  

    7.1  DESIGNATION OF BENEFICIARIES. Each Participant from time to time may designate any person or persons (who may be
named contingently or successively) to receive such benefits as may be payable under the Plan upon or after the Participant's death, and such designation may be changed from time to time by the
Participant by filing a new designation. Each designation will revoke all prior designations by the same Participant, shall be in a form prescribed by the Employer, and will be effective only when
filed in writing with the Employer during the Participant's lifetime. 

        In
the absence of a valid Beneficiary designation, or if, at the time any benefit payment is due to a Beneficiary, there is no living Beneficiary validly named by the
Participant, the Employer shall pay any such benefit payment to the Participant's spouse, if then living, but otherwise to the Participant's then living descendants, if any,  per stirpes, but, if none,
to the Participant's estate. In determining the
existence or identity of anyone entitled to a benefit payment, the Employer may rely conclusively upon information supplied by the Participant's personal representative, executor or administrator. If
a question arises as to the existence or identity of anyone entitled to receive a benefit payment as aforesaid, or if a dispute arises with respect to any such payment, then, notwithstanding the
foregoing, the Employer, in its sole discretion, may distribute such payment to the Participant's estate without liability for any tax or other consequences which might flow therefrom, or may take
such other action as the Employer deems to be appropriate. 

    7.2  INFORMATION TO BE FURNISHED BY PARTICIPANTS AND BENEFICIARIES; INABILITY TO LOCATE PARTICIPANTS OR BENEFICIARIES.
Any communication, statement or notice addressed to a Participant or to a Beneficiary at his or her last post office address as shown on the Employer's records shall be binding on the Participant or
Beneficiary for all purposes of the Plan. The Employer shall not be obliged to search for any Participant or Beneficiary beyond the sending of a registered letter to such last known address. If the
Employer notifies any Participant or Beneficiary that he or she is entitled to an amount under the Plan and the Participant or Beneficiary fails to claim such amount or make his or her location known
to the Employer within three (3) years thereafter, then, except as otherwise required by law, if the location of one or more of the next of kin of the Participant is known to the Employer, the
Employer may direct distribution of such amount to any one or more or all of such next of kin, and in such proportions as the Employer determines. If the location of none of the foregoing persons can
be determined, the Employer shall have the right to direct that the amount payable shall be deemed to be a forfeiture, except that the dollar amount of the forfeiture, unadjusted for deemed gains or
losses in the interim, shall be paid by the Employer if a claim for the benefit subsequently is made by the Participant or the Beneficiary to whom it was payable. If a benefit payable to an unlocated
Participant or Beneficiary is subject to escheat pursuant to applicable state law, the Employer shall not be liable to any person for any payment made in accordance with such law. 

 
 

ARTICLE 8
  ADMINISTRATION    
  

    8.1  ADMINISTRATIVE AUTHORITY. Except as otherwise specifically provided herein, the Plan Committee shall have the sole
responsibility for and the sole control of the operation and administration of the Plan, and shall have the power and authority to take all action and to make all decisions and interpretations which
may be necessary or appropriate in order to administer and operate the Plan, including, without limiting the generality of the foregoing, the power, duty and responsibility to: 

    (a) Resolve
and determine all disputes or questions arising under the Plan, and to remedy any ambiguities, inconsistencies or omissions in the Plan. 

8

 

    (b) Adopt such rules of procedure and regulations as in its opinion may be necessary for the proper and efficient administration of the Plan and as are consistent with
the Plan. 

    (c) Implement
the Plan in accordance with its terms and the rules and regulations adopted as above. 

    (d) Make
determinations with respect to the eligibility of any Eligible Employee as a Participant and make determinations concerning the crediting of Plan Accounts. 

    (e) Appoint
any persons or firms, or otherwise act to secure specialized advice or assistance, as it deems necessary or desirable in connection with the administration
and operation of the Plan, and the Employer shall be entitled to rely conclusively upon, and shall be fully protected in any action or omission taken by it in good faith reliance upon, the advice or
opinion of such firms or persons. The Employer shall have the power and authority to delegate from time to time by written instrument all or any part of its duties, powers or responsibilities under
the Plan, both ministerial and discretionary, as it deems appropriate, to any person or committee, and in the same manner to revoke any such delegation of duties, powers or responsibilities. Any
action of such person or committee in the exercise of such delegated duties, powers or responsibilities shall have the same force and effect for all purposes hereunder as if such action had been taken
by the Employer. Further, the Employer may authorize one or more persons to execute any certificate or document on behalf of the Employer, in which event any person notified by the Employer of such
authorization shall be entitled to accept and conclusively rely upon any such certificate or document executed by such person as representing action by the Employer until such notified person shall
have been notified of the revocation of such authority. 

    8.2  LITIGATION. Except as may be otherwise required by law, in any action or judicial proceeding affecting the Plan, no
Participant or Beneficiary shall be entitled to any notice or service of process, and any final judgment entered in such action shall be binding on all persons interested in, or claiming under, the
Plan. 

    8.3  CLAIMS PROCEDURE. Any person claiming a benefit under the Plan (a "Claimant") shall present the claim, in writing,
to the Plan Committee, and the Plan Committee shall respond in writing. If the claim is denied, the written notice of denial shall state, in a manner calculated to be understood by the Claimant: 

    (a) The
specific reason or reasons for the denial, with specific references to the Plan provisions on which the denial is based; 

    (b) A
description of any additional material or information necessary for the Claimant to perfect his or her claim and an explanation of why such material or
information is necessary; and 

    (c) An
explanation of the Plan's claims review procedure. 

        The
written notice denying or granting the Claimant's claim shall be provided to the Claimant within ninety (90) days after the Plan Committee's receipt of the
claim, unless special circumstances require an extension of time for processing the claim. If such an extension is required, written notice of the extension shall be furnished by the Plan Committee to
the Claimant within the initial ninety (90) day period and in no event shall such an extension exceed a period of ninety (90) days from the end of the initial ninety (90) day
period. Any extension notice shall indicate the special circumstances requiring the extension and the date on which the Employer expects to render a decision on the claim. Any claim not granted or
denied within the period noted above shall be deemed to have been denied. 

        Any
Claimant whose claim is denied, or deemed to have been denied under the preceding sentence (or such Claimant's authorized representative), may, within sixty
(60) days after the Claimant's receipt of notice of the denial, or after the date of the deemed denial, request a review of the denial by notice given, in writing, to the Plan Committee. Upon
such a request for review, the claim shall be 

9

 

reviewed by the Plan Committee (or its designated representative) which may, but shall not be required to, grant the Claimant a hearing. In connection with the review, the Claimant may have
representation, may examine pertinent documents, and may submit issues and comments in writing. 

        The
decision on review normally shall be made within sixty (60) days of the Plan /committee's receipt of the request for review. If an extension of time is
required due to special circumstances, the Claimant shall be notified, in writing, by the Plan Committee, and the time limit for the decision on review shall be extended to one hundred twenty
(120) days. The decision on review shall be in writing and shall state, in a manner calculated to be understood by the Claimant, the specific reasons for the decision and shall include
references to the relevant Plan provisions on which the decision is based. The written decision on review shall be given to the Claimant within the sixty (60) day (or, if applicable, the one
hundred twenty (120) day) time limit discussed above. If the decision on review is not communicated to the Claimant within the sixty (60) day (or, if applicable, the one hundred twenty
(120) day) period
discussed above, the claim shall be deemed to have been denied upon review. All decisions on review shall be final and binding with respect to all concerned parties. 

 
 

ARTICLE 9
  AMENDMENT    
  

    9.1  RIGHT TO AMEND. The Employer, by action of the Plan Committee, shall have the right to amend the Plan, at any time
and with respect to any provisions hereof, and all parties hereto or claiming any interest hereunder shall be bound by such amendment; provided, however, that no such amendment shall deprive a
Participant or a Beneficiary of a right accrued hereunder prior to the date of the amendment. 

    9.2  AMENDMENTS TO ENSURE PROPER CHARACTERIZATION OF PLAN. Notwithstanding the provisions of Section 9.1, the
Plan may be amended by the Employer, by action of the Plan Committee, at any time, retroactively if required, if found necessary, in the opinion of the Plan Committee, in order to ensure that the Plan
is characterized as "top-hat" plan of deferred compensation maintained for a select group of management or highly compensated employees as described under ERISA sections 201(2), 301(a)(3),
and 401(a)(1), and to conform the Plan to the provisions and requirements of any applicable law (including ERISA and the Code). No such amendment shall be considered prejudicial to any interest of a
Participant or a Beneficiary hereunder. 

    9.3  STATUS OF PARTICIPANTS

    a.  Employees,
Participants and Inactive Participants under this Plan shall have the status of general unsecured creditors of the Company; 

    b.  This
Plan constitutes a mere promise by the Company to make benefit payments in the future; 

    c.  Any
trust to which this Plan refers (i.e. any trust created by the Company and any assets held by the trust to assist the Company in meeting its obligations under
the Plan) shall be based on the terms of the model trust described in Revenue Procedure 92-64; and 

    d.  It
is the intention of the parties that the arrangements under this Plan shall be unfunded for tax purposes and for purposes of Title I of ERISA. 

 
 

ARTICLE 10
  TERMINATION    
  

    10.1  EMPLOYER'S RIGHT TO TERMINATE OR SUSPEND PLAN. The Employer reserves the right to terminate the Plan and/or its
obligation to make further credits to Plan Accounts, by action of 

10

 

the Plan Committee. The Employer also reserves the right to suspend the operation of the Plan for a fixed or indeterminate period of time, by action of the Plan Committee. 

    10.2  AUTOMATIC TERMINATION OF PLAN. The Plan automatically shall terminate upon the dissolution of the Employer, or
upon its merger into or consolidation with any other corporation or business organization if there is a failure by the surviving corporation or business organization to adopt specifically and agree to
continue the Plan. 

    10.3  SUSPENSION OF DEFERRALS. In the event of a suspension of the Plan, the Employer shall continue all aspects of the
Plan, other than Compensation Deferrals, during the period of the suspension, in which event payments hereunder will continue to be made during the period of the suspension in accordance with Articles
5 and 6. 

    10.4  ALLOCATION AND DISTRIBUTION. This Section shall become operative on a complete termination of the Plan. The
provisions of this Section also shall become operative in the event of a partial termination of the Plan, as determined by the Employer, but only with respect to that portion of the Plan attributable
to the Participants to whom the partial termination is applicable. Upon the effective date of any such event, notwithstanding any other provisions of the Plan, no persons who were not theretofore
Participants shall be eligible to become Participants, the value of the interest of all Participants and Beneficiaries shall be determined and, after deduction of estimated expenses in liquidating
and, if applicable, paying Plan benefits, paid to them as soon as is practicable after such termination. 

    10.5  SUCCESSOR TO EMPLOYER. Any corporation or other business organization which is a successor to the Employer by
reason of a consolidation, merger or purchase of substantially all of the assets of the Employer shall have the right to become a party to the Plan by adopting the same by resolution of the entity's
board of directors or other appropriate governing body. If, within ninety (90) days from the effective date of such consolidation, merger or sale of assets, such new entity does not become a
party hereto, as above provided, the Plan automatically shall be terminated, and the provisions of Section 10.4 shall become operative. 

 
 

ARTICLE 11
  THE TRUST    
  

    11.1  ESTABLISHMENT OF TRUST. The Employer shall establish the Trust with the Trustee pursuant to such terms and
conditions as are set forth in the Trust agreement to be entered into between the Employer and the Trustee. Any such Trust shall be intended to be treated as a "grantor trust" under the Code and the
establishment of the Trust or the utilization of any existing Trust for Plan benefits, as applicable, shall not be intended to cause any Participant to realize current income on amounts contributed
thereto, and the Trust shall be so interpreted. 

 
 

ARTICLE 12
  MISCELLANEOUS    
  

    12.1  LIMITATIONS ON LIABILITY OF EMPLOYER. Neither the establishment of the Plan nor any modification thereof, nor the
creation of any account under the Plan, nor the payment of any benefits under the Plan shall be construed as giving to any Participant or other person any legal or equitable right against the
Employer, or any officer or employer thereof except as provided by law or by any Plan provision. The Employer does not in any way guarantee any Participant's Account from loss or depreciation, whether
caused by poor investment performance of a deemed investment or the inability to realize upon an investment due to an insolvency affecting an investment vehicle or any other reason. In no event shall
the Employer, or any successor, employee, officer, director or stockholder of the Employer, be liable to any person on account of any claim arising by reason of the provisions of the Plan or of any
instrument or instruments implementing its provisions, or for the 

11

 

failure of any Participant, Beneficiary or other person to be entitled to any particular tax consequences with respect to the Plan, or any credit or distribution hereunder. 

    12.2  CONSTRUCTION. If any provision of the Plan is held to be illegal or void, such illegality or invalidity shall not
affect the remaining provisions of the Plan, but shall be fully severable, and the Plan shall be construed and enforced as if said illegal or invalid provision had never been inserted herein. For all
purposes of the Plan, where the context admits, the singular shall include the plural, and the plural shall include the singular. Headings of Articles and Sections herein are inserted only for
convenience of reference and are not to be considered in the construction of the Plan. The laws of the State of California shall govern, control and determine all questions of law arising with respect
to the Plan and the interpretation and validity of its respective provisions, except where those laws are preempted by the laws of the United States. Participation under the Plan will not give any
Participant the right to be retained in the service of the Employer nor any right or claim to any benefit under the Plan unless such right or claim has specifically accrued hereunder. 

        The
Plan is intended to be and at all times shall be interpreted and administered so as to qualify as an unfunded deferred compensation plan, and no provision of the
Plan shall be interpreted so as to give any individual any right in any assets of the Employer which right is greater than the rights of a general unsecured creditor of the Employer. 

    12.3  SPENDTHRIFT PROVISION. No amount payable to a Participant or a Beneficiary under the Plan will, except as
otherwise specifically provided by law, be subject in any manner to anticipation, alienation, attachment, garnishment, sale, transfer, assignment (either at law or in equity), levy, execution, pledge,
encumbrance, charge or any other legal or equitable process, and any attempt to do so will be void; nor will any benefit be in any manner liable for or subject to the debts, contracts, liabilities,
engagements or torts of the person entitled thereto. Further, (i) the withholding of taxes from Plan benefit payments, (ii) the recovery under the Plan of overpayments of benefits
previously made to a Participant or Beneficiary, (iii) if applicable, the transfer of benefit rights from the Plan to another plan, or (iv) the direct deposit of benefit payments to an
account in a banking institution (if not actually part of an arrangement constituting an assignment or alienation) shall not be construed as an assignment or alienation. 

        In
the event that any Participant's or Beneficiary's benefits hereunder are garnished or attached by order of any court, the Employer or Trustee may bring an action
or a declaratory judgment in a court of competent jurisdiction to determine the proper recipient of the benefits to be paid under the Plan. During the pendency of said action, any benefits that become
payable shall be held as credits to the Participant's or Beneficiary's Account or, if the Employer or Trustee prefers, paid into the court as they become payable, to be distributed by the court to the
recipient as the court deems proper at the close of said action. 

    
 IN WITNESS WHEREOF, the Employer has caused the Plan to be executed and its seal to be affixed hereto, effective as of the 1st day of January, 2000. 

	ATTEST/WITNESS:
 
	 	MIPS TECHNOLOGIES, INC.
 

	
 	
 	

 
	
	 	By:
 (SEAL)
	

Print:
	
 	

Print Name:

	

 	
 	

Date:

12

QuickLinks

MIPS TECHNOLOGIES, INC. NONQUALIFIED DEFERRED COMPENSATION PLAN

ARTICLE 1 DEFINITIONS

ARTICLE 2 ELIGIBILITY AND PARTICIPATION

ARTICLE 3 CONTRIBUTIONS AND CREDITS

ARTICLE 4 ALLOCATION OF FUNDS

ARTICLE 5 ENTITLEMENT TO BENEFITS

ARTICLE 6 DISTRIBUTION OF BENEFITS

ARTICLE 7 BENEFICIARIES; PARTICIPANT DATA

ARTICLE 8 ADMINISTRATION

ARTICLE 9 AMENDMENT

ARTICLE 10 TERMINATION

ARTICLE 11 THE TRUST

ARTICLE 12 MISCELLANEOUS

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