Document:

Exhibit 10.3

QUICKLOGIC CORPORATION

1999
STOCK PLAN

NOTICE
OF GRANT OF STOCK OPTIONS

Unless
otherwise defined herein, the terms defined in the 1999 Stock Plan (the “Plan”)
will have the same defined meanings in this Notice of Grant of Stock Options
(the “Notice of Grant”) and the Stock Option Agreement, attached hereto as Exhibit
A (the “Stock Option Agreement” or “Agreement”).

QuickLogic
Corporation is pleased to inform you that you, the undersigned Optionee, have
been granted an option (“Option”) to purchase common stock (hereinafter
referred to as the “Shares”) of the Company, subject to the terms and
conditions of the Plan and this Agreement, as follows:

	
  Optionee:

  	
   

  	
   

  
	
  Grant Number:

  	
   

  	
   

  
	
  Board Notification Date:

  	
   

  	
   

  
	
  Date of Grant:

  	
   

  	
   

  
	
  Vesting Commencement Date:

  	
   

  	
   

  
	
  Exercise Price, per Share:

  	
   

  	
   

  
	
  Number of Shares Granted:

  	
   

  	
   

  
	
  Term of Option:

  
									

 

	
  Type of Option:

  	
   

  	
        Incentive
  Stock Option

  	
   

  	
        Nonstatutory
  Stock Option

  

 

Vesting Schedule: The option may be exercised as it vests. The
options will vest in accordance with the following vesting schedule, so long as
a Vesting Cessation Date (as defined herein) has not occurred:

        25%
of the Shares subject to the Option shall vest twelve months after the Vesting
Commencement Date, and 1/48 of the Shares subject to the Option shall vest each
month thereafter.  Fully vested in four
years.

        25%
of the Shares subject to the Option shall vest twelve months after the Vesting
Commencement Date, and 1/8 of the Shares subject to the Option shall vest
fifteen months after the Vesting Commencement Date and each six months
thereafter.  Fully vested in 15 quarters.

        1/12 th of the Shares subject to the Option shall vest
for each full month of Service after the Vesting Commencement Date.  Fully vested in one year.

        l/24th of the Shares subject to the Option shall vest
for each full month of Service after the Vesting Commencement Date.  Fully vested in two years.

        1/
        of the Shares subject to the
Option shall vest                 
after the Vesting Commencement Date. 
Thereafter, 1/        of the
Shares shall vest for each full        
of Service.  Fully vested in       -      .

       1/
      of the Shares subject to the Option
shall vest for each full        of Service
after the Vesting Commencement Date.

       100%
of the Shares subject to the Option shall be fully vested on the grant date.

Termination of Relationship as a Service Provider or Provision of
Notice of Employment Termination; Vesting Cessation Date.  If Optionee (i) ceases to provide ongoing
service as a Service Provider (for any reason and regardless of any appropriate
court finding such termination unfair or irregular on any basis whatsoever), or
(ii) is provided with notice of termination of employment (for any reason and
regardless of any appropriate court finding the related termination unfair or
irregular on any basis whatsoever) and ceases to provide ongoing service during
the notice period, the Optionee may exercise his or her Option for a three
month period beginning (a) the earlier of the date of such cessation as a
Service Provider or the last date of ongoing service after receiving a notice
of termination of employment, or (b) such later date as required by Applicable
Law (the earlier of these dates or such later date required by Applicable Law
is referred to herein as the “Vesting Cessation Date,” as reasonably fixed and
determined by the Administrator).  Such
exercise period shall automatically extend from three to twelve months in the
event Optionee ceases to be a Service Provider as a result of Optionee’s death
or Disability.  In no event shall this
Option be exercised later than the expiration of the term of such Option as set
forth in the Option Agreement.  Optionee
further acknowledges and agrees that this Agreement, the transactions
contemplated hereunder and the vesting schedule set forth herein do not
constitute an express or implied promise of continued engagement as a Service
Provider for the vesting period or for any other period and shall not interfere
with Optionee’s right or the Company’s right to terminate Optionee’s
relationship as a Service Provider at any time, with or without notice, except
as otherwise required by Applicable Law. At the sole discretion of Company,
subject to Applicable Law, Optionee may be paid a lump sum for their cash
compensation in lieu of notice. Options which do not vest by the Vesting
Cessation Date shall automatically become void and without further effect.  In such event, the underlying Shares shall be
returned to the Plan.

The Stock Option Agreement included as
Exhibit A and the Plan are incorporated herein by reference.  The Plan, Stock Option Agreement and this
Notice of Grant constitute the entire agreement of the parties with respect to
the subject matter hereof and supersede in their entirety all prior
undertakings and agreements of the Company and Optionee with respect to the
subject matter hereof, and may not be modified adversely to the Optionee’s
interest except by means of a writing signed by the Company and the
Optionee.  The Company will administer
the Plan from the United States of America, and any disputes will be settled in
the U.S. according to U.S. law.  This
Notice of Grant, Stock Option Agreement, Plan and all awards are governed by
the internal substantive laws, but not the choice of law principles, of the
State of California, United States of America.

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By Optionee’s
signature and the signature of the Company’s representative below, Optionee and
the Company agree that this Option is granted under and governed by the terms
and conditions of the Plan, the Stock Option Agreement and this Notice of
Grant.  Optionee has reviewed the Plan,
the Stock Option Agreement and this Notice of Grant in their entirety, has had
an opportunity to obtain the advice of counsel prior to executing this
Agreement and fully understands all provisions of the Plan, the Stock Option
Agreement and this Notice of Grant. 
Optionee hereby agrees to accept as binding, conclusive and final all
decisions or interpretations of the Administrator upon any questions relating
to the Plan, the Stock Option Agreement and this Notice of Grant.

	
  OPTIONEE:

  	
   

  	
  QUICKLOGIC CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Print Name

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
  Date:

  	
   

  
						

 

OPTIONEE ADDRESS:

	
  

  	
   

  
	
   

  
	
   

  	
   

  

 

BENEFICIARY:

 

	
  

  	
   

  
	
  Print Name

  
	
   

  
	
  Date:

  	
   

  	
   

  
				

 

Consent of spouse required if
beneficiary is someone other than spouse:

	
  Signature:

  	
   

  	
   

  
	
   

  	
   

  
	
  Print Name:

  	
   

  	
   

  
	
   

  	
   

  
	
  Date:

  	
   

  	
   

  
					

 

Please
return this Notice of Grant of Stock Options to the Stock Administrator of the
Company.

 

(Form of Notice as of
August 2007)

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EXHIBIT
A

STOCK
OPTION AGREEMENT

1.             Grant of Option.  The Plan Administrator of the Company hereby
grants to the person named in the Notice of Grant under the Plan (the “Optionee”)
an option (the “Option”) to purchase the number of Shares, as set forth in the
Notice of Grant, at the exercise price per share set forth in the Notice of
Grant (the “Exercise Price”), subject to the terms and conditions of the Notice
of Grant, this Stock Option Agreement and the Plan, which is incorporated by
reference.  Subject to Section 16(c)
of the Plan, in the event of a conflict between the terms and conditions of the
Plan and the terms and conditions of this Option Agreement, the terms and
conditions of the Plan shall prevail.  If
designated in the Notice of Grant as an Incentive Stock Option (“ISO”), this
Option is intended to qualify as an ISO under Section 422 of the
Code.  However, any Option that exceeds
the $100,000 rule of Code Section 422(d) shall be treated as a
Nonstatutory Stock Option (“NSO”).

2.             Exercise
of Option.  This Option is
exercisable during its term in accordance with the Vesting Schedule set
out in the Notice of Grant and the applicable provisions of the Plan and this
Stock Option Agreement.  This Option
shall be deemed exercised when the Company receives:  (i) written or electronic notice of
exercise from the person entitled to exercise the Option; and (ii) full
payment of the Exercise Price, as defined herein, for Shares exercised.  The form of written notice of exercise is attached
as Exhibit A-1. The forms of consideration acceptable for the
payment of the aggregate Exercise Price are described in the Plan,
Section 9(c).

3.             Term of Option.  This Option may be exercised only within the
Term of Option set out in the Notice of Grant, and in accordance with the terms
of the Plan and this Option Agreement.

4.             Tax Withholding
and Consequences.  Regardless of any
action the Company takes with respect to any or all income tax, social
insurance, payroll tax, or other tax-related withholding, fringe benefit tax (“FBT”) or National Insurance Contribution (“NIC”) tax paid or
payable in respect of the grant, vesting, exercise, cancellation, transfer of
the Options or issuance of the Shares (“Tax-Related Items”), Optionee
acknowledges that the ultimate liability for all Tax-Related Items legally due
by Optionee are and remain Optionee’s responsibility and that the Company (a)
makes no representations or undertakings regarding the treatment of any
Tax-Related Items in connection with any aspect of the grant, vesting, exercise
or delivery of options or related Shares, the subsequent sale of Shares and/or
the receipt of any dividends; and (b) does not commit to structure the terms of
a option grant to reduce or eliminate Optionee’s liability for Tax-Related
Items.  Optionee should consult a tax
adviser and the Plan in order to determine the tax consequences before
exercising this Option or disposing of the Shares.

5.             Tax Matters.  If the Optionee sells or otherwise disposes
of any of the Shares acquired pursuant to an ISO on or before the later of
(i) two years after the grant date, or (ii) one year after the
exercise date, the Optionee shall immediately notify the Company in writing of
such disposition, and shall promptly provide any information that may be
requested by the Company and/or the 

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Company’s consultant regarding such sale or
other disposition of the Shares.  The
Optionee agrees that he or she may be subject to income tax withholding by the
Company on the compensation income recognized from such early disposition of
ISO Shares by payment in cash or out of the current earnings paid to the
Optionee.

6.             Tax Obligations. 
Optionee agrees to make appropriate arrangements with the Company (or
the Parent or Subsidiary employing or retaining Optionee) in accordance with
the procedures offered by the Company for the satisfaction of all federal,
state, local and foreign income and employment tax withholding requirements,
FBT and NIC applicable to the grant, vesting or exercise of the Options and
issuance of the Shares.  Optionee also agrees
to reimburse or pay the Company (including its Subsidiaries) in full, any
liability that the Company incurs towards any FBT or NIC paid or
payable in respect of the grant, vesting, exercise or cancellation of the
Option or transfer or delivery of the Shares, within the time and in the manner prescribed by the
Company.  The Administrator may in its sole discretion determine amounts and
whether the withholding taxes and/or FBT and/or NIC with respect to such Option
and related Shares will be paid by cash, exercising and selling a portion of a vested
Option, electing to have the Company withhold
otherwise deliverable Shares having a value equal to the minimum amount
statutorily required to be withheld, selling a sufficient number of such
Shares otherwise deliverable to Optionee through such means as the Company may
determine in its sole discretion (whether through a broker or otherwise) having
a Fair Market Value equal to the amount required, by directing of a portion of the proceeds to the Company, by payroll
withholding, by delivering already vested and owned Shares to the Company, by
delivering net shares, by direct payment from the Optionee to the Company, by
some other method, or by some combination thereof.  Optionee agrees to execute any additional documents
requested by the Company for such reimbursement of such taxes to the Company.

Optionee grants to the Company the irrevocable authority, as agent of
Optionee and on Optionee’s behalf, to sell or procure the sale of sufficient
Shares subject to this Option so that the net proceeds receivable by the
Company are as far as possible equal to but not less than the amount of any
withholding tax, FBT or NIC the Optionee is liable for (including pursuant to
the preceding paragraph) and the Company will account to Optionee for any
balance.

Optionee acknowledges and agrees that the Company may refuse to allow
the exercise of Options or the delivery of Shares if Optionee has not made
appropriate arrangements with the Company to satisfy tax withholding
requirements, FBT or NIC.

7.             No Guarantee of
Continued Service.  OPTIONEE
ACKNOWLEDGES AND AGREES THAT THE VESTING OF SHARES PURSUANT TO THE VESTING
SCHEDULE HEREOF IS EARNED ONLY BY CONTINUING AS A SERVICE PROVIDER AT THE WILL
OF THE COMPANY (NOT THROUGH THE ACT OF BEING HIRED, BEING GRANTED AN OPTION OR PURCHASING
SHARES HEREUNDER).  OPTIONEE FURTHER
ACKNOWLEDGES AND AGREES THAT THIS AGREEMENT, THE TRANSACTIONS CONTEMPLATED
HEREUNDER AND THE VESTING SCHEDULE SET FORTH HEREIN DO NOT CONSTITUTE AN
EXPRESS OR IMPLIED PROMISE OF CONTINUED ENGAGEMENT AS A SERVICE PROVIDER FOR
THE VESTING PERIOD, FOR ANY PERIOD, OR AT ALL, AND WILL NOT INTERFERE WITH
OPTIONEE’S RIGHT OR THE COMPANY’S RIGHT TO TERMINATE OPTIONEE’S SERVICE
PROVIDER STATUS AT ANY TIME, WITH OR

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WITHOUT CAUSE, EXCEPT AS OTHERWISE REQUIRED
BY APPLICABLE LAW.  ACCORDINGLY, OPTIONEE
DOES NOT HAVE ANY ENTITLEMENT TO AN OPTION IF OPTIONEE RESIGNS OR IF THERE IS A
VESTING CESSATION DATE FOR ANY REASON PRIOR TO THE DATE THAT THE OPTION VESTS.

8.             Data Privacy.  By accepting this Stock Option Agreement or
any Shares upon exercise thereof, Optionee explicitly and unambiguously
consents to the collection, use and transfer, in electronic or other form, of
Optionee’s personal data as described in this document by and among, as
applicable, the Company, its subsidiaries and affiliates for the exclusive
purpose of implementing, administering and managing Optionee’s participation in
the Plan.  For the purpose of
implementing, administering and managing the Plan, Optionee understands that
the Company holds certain personal information about Optionee, including, but
not limited to, Optionee’s name, home address and telephone number, date of
birth, Tax ID or other identification number, salary, nationality, job title,
any equity or directorships held in the Company, details of all equity awards
or any entitlement to Shares awarded, canceled, exercised, vested, unvested or
outstanding in Optionee’s favor, for the purpose of implementing, administering
and managing the Plan (“Data”).  Optionee
understands that Data may be transferred to any third parties assisting in the
implementation, administration and management of the Plan, that these
recipients may be located in Optionee’s country or elsewhere.  The Company, as a global company, may
transfer Optionee’s personal data to countries that may not provide an adequate
level of protection.  The Company,
however, is committed to providing a suitable and consistent level of
protection for Optionee’s personal data regardless of the country in which it
resides.  Optionee understands that
Optionee may request information regarding the Company’s stock plan
administration by contacting Human Resources, the Chief Financial Officer or
their designee.  Optionee authorizes the
recipients to receive, possess, use, retain and transfer the Data, in
electronic or other form, for the purposes of implementing, administering and
managing Optionee’s participation in the Plan, including any requisite transfer
of such Data as may be required to a broker or other third party with whom
Optionee deposits any Shares issued at exercise of an option.  Optionee understands that Data will be held
as long as is necessary to implement, administer and manage the Plan.  Optionee understands that Optionee may, at
any time, view Data, request additional information about the storage and
processing of Data, require any necessary amendments to Data or refuse or
withdraw the consents herein, in any case without cost, by contacting in
writing Human Resources or the Chief Financial Officer.  Optionee understands, however, that refusing
or withdrawing Optionee’s consent may affect Optionee’s ability to participate
in the Plan.  For more information on the
consequences of Optionee’s refusal to consent or withdrawal of consent,
Optionee understands that he or she may contact Human Resources, the Chief
Financial Officer or their designee.

9.             Electronic Delivery.  The Company may, in its sole discretion,
decide to deliver any documents related to the Option or issuance of Shares and
participation in the Plan or future Stock Option Agreements that may be awarded
under the Plan by electronic means or to request Optionee’s consent to
participate in the Plan by electronic means. 
Optionee hereby consents to receive such documents by electronic
delivery and, if requested, to agree to participate in the Plan through an
on-line or electronic system established and maintained by the Company or
another third party designated by the Company.

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10.           Payments after Death.  Any distribution or delivery to be made to
the Optionee under this Agreement will, if the Optionee is then deceased, be
made to the administrator or executor of the Optionee’s estate or, if none, to the persons entitled to
receive such distribution or delivery under the Optionee will or the laws of descent or distribution.  Any such recipient must furnish the Company
with (a) written notice of his or her status as transferee, and (b) evidence
satisfactory to the Company to establish the validity of the transfer and
compliance with any laws or regulations pertaining to said transfer.

11.           Option is Not
Transferable.  Except to the limited
extent provided in paragraph 10 of this Agreement, this Option and the
rights and privileges conferred hereby will not be transferred, assigned,
pledged or hypothecated in any way (whether by operation of law or otherwise)
and will not be subject to sale under execution, attachment or similar
process.  Upon any attempt to transfer,
assign, pledge, hypothecate or otherwise dispose of this Option, or any right or
privilege conferred hereby, or upon any attempted sale under any execution,
attachment or similar process, this Option and the rights and privileges
conferred hereby immediately will become null and void.

12.           Rights as
Stockholder.  Neither the Optionee
nor any person claiming under or through the Optionee will have any of the
rights or privileges of a stockholder of the Company in respect of any Shares
deliverable hereunder unless and until certificates representing such Shares
will have been issued, recorded on the records of the Company or its transfer
agents or registrars, and delivered to the Optionee or Optionee’s broker or had
the Shares electronically transferred to Optionee’s account.

13.           Acknowledgments.  The Optionee expressly acknowledges the
following:

(a)           The Company (whether or
not Optionee’s employer) is granting the Option.  That the Option, future grants of Options,
and benefits and rights provided under the Plan are at the complete discretion
of the Company and do not constitute regular or periodic payments, or
remuneration under the terms of employment. 
No grant of Options will be deemed to create any obligation to grant any
further options, whether or not such a reservation is explicitly stated at the
time of such a grant.  The benefits and
rights provided under the Plan are not to be considered part of Optionee’s
salary or total compensation for purposes of determining Optionee’s entitlement
upon termination and will not be included for purposes of calculating any
severance, resignation, termination, redundancy or other end of service
payments, vacation, bonuses, long-term service awards, indemnification, pension
or retirement benefits, life insurance, 401(k) profit sharing or any other
payments, benefits or rights of any kind. 
Optionee waives any and all rights to compensation or damages as a
result of the termination of employment with the Company or its subsidiaries
and the administration of the Plan and this grant for any reason whatsoever
insofar as those rights result or may result from:

(i)            the
loss or diminution in value of such rights under the Plan, or

(ii)           Optionee
ceasing to have any rights under, or ceasing to be entitled to any rights under
the Plan as a result of such termination or administration.

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(b)           The Company has the right, at any time to amend, suspend or terminate
the Plan.  The Plan will not be deemed to
constitute, and will not be construed by Optionee to constitute, part of the
terms and conditions of employment, and that the Company will not incur any
liability of any kind to Optionee as a result of any change or amendment, or
any cancellation, of the Plan at any time.

(c)           The Optionee’s employment with the Company and its Subsidiaries is not
affected at all by any grant and it is agreed by the Optionee not to create an
entitlement and will not be included in the Optionee’s entitlement at common
law for damages during any reasonable notice period.  Accordingly, the terms of the Optionee’s
employment with the Company and its Subsidiaries will be determined from time
to time by the Company or the Subsidiary employing the Optionee (as the case
may be), and the Company or the Subsidiary will have the right, which is hereby
expressly reserved, to terminate or change the terms of the employment of the
Optionee at any time for any reason whatsoever, with or without good cause or
notice, and to determine when Optionee is no longer providing ongoing service
to the Company for purposes of administering Optionee’s Option, except as may
be expressly prohibited by the laws of the jurisdiction in which the Optionee
is employed.

(d)           The future value of the Shares is unknown
and cannot be predicted with certainty.

(e)                                  Choice of
Language.

(i)            For Employees of
Canadian Locations:  The undersigned
agrees that it is his or her express wish that this form and all documents relating
to his or her participation in the scheme be drawn in the English language
only.  Le soussigné convient que sa volonté expresse est que ce formulaire ainsi
que tous les documents se rapportant à sa participation au régime soient
rédigés en langue anglaise seulement.

(ii)           For Employees of Locations Other than
Canada:  Optionee has received this
Agreement and any other related communications and consents to having received
these documents solely in English.

14.           Binding Agreement.  Subject to the limitation on the
transferability of this grant contained herein, this Agreement will be binding
upon and inure to the benefit of the heirs, legatees, legal representatives,
successors and assigns of the parties hereto.

15.           Additional Conditions to Issuance of Stock.  If
at any time the Company will determine, in its discretion, that the listing,
registration or qualification of the Shares upon any securities exchange or
under any state or federal law, or the consent or approval of any governmental
regulatory authority is necessary or desirable as a condition to the issuance
of Shares to the Optionee (or Optionee’s estate), such issuance will not occur
unless and until such listing, registration, qualification, consent or approval
will have been effected or obtained free of any conditions not acceptable to
the Company.  The Company will make all
reasonable efforts to meet the requirements of any such state or federal law or
securities exchange and to obtain any such consent or approval of any such
governmental authority.

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16.           Administrator Authority.  The
Administrator has the power to interpret the Plan, the Notice of Grant and this
Agreement and to adopt such rules for the administration, interpretation and
application thereof as are consistent therewith and to interpret or revoke any
such rules.  Any dispute regarding
the interpretation of this Agreement will be submitted by Optionee or by the
Company forthwith to the Administrator which will review such dispute at its
next regular meeting.  All actions taken and all interpretations and
determinations made by the Administrator in good faith will be final and
binding upon Optionee, the Company and all other interested persons.  No member of the Administrator will be
personally liable for any action, determination or interpretation made in good
faith with respect to the Plan, the Notice of Grant or this Agreement.

17.           Address for Notices.  Any notice to be given to the Company under
the terms of this Agreement will be made in writing and deemed effective: (i)
upon delivery when delivered in person; or (iii) when delivered by registered
or certified mail, postage prepaid, return receipt requested, addressed to the
Company at 1277 Orleans Drive, Sunnyvale, CA 94089, Attn: Stock
Administrator, or at such other address as the Company may hereafter designate
in writing or electronically.

18.           Captions. 
Captions provided herein are for convenience only and are not to serve
as a basis for interpretation or construction of this Agreement.

19.           Agreement
Severable.  In the event that any provision in this
Agreement will be held invalid or unenforceable, such provision will be
severable from, and such invalidity or unenforceability will not be construed
to have any effect on, the remaining provisions of this Agreement.

20.           Modifications
to the Agreement.  This Agreement constitutes the entire
understanding of the parties on the subjects covered.  Optionee expressly warrants that he or she is
not accepting this Agreement in reliance on any promises, representations, or
inducements other than those contained herein. 
Modifications to this Agreement or the Plan can be made only in an
express written contract executed by a duly authorized officer of the
Company.  Notwithstanding anything to the
contrary in the Plan or this Agreement, the Company reserves the right to
revise this Agreement as it deems necessary or advisable, in its sole
discretion and without the consent of Optionee, to comply with Section 409A of
the Internal Revenue Code of 1986, as amended (the “Code”) or to otherwise avoid
imposition of any additional tax or income recognition under Section 409A of
the Code in connection with this Option.

21.           No Waiver.  Either party’s failure to enforce any
provision or provisions of this Agreement will not in any way be construed as a
waiver of any such provision or provisions, nor prevent that party from
thereafter enforcing each and every other provision of this Agreement.  The rights granted both parties herein are
cumulative and will not constitute a waiver of either party’s right to assert
all other legal remedies available to it under the circumstances.

(Form of Agreement as of
August 2007)

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Exhibit
A-1

QUICKLOGIC
CORPORATION

1999 STOCK PLAN

STOCK
OPTION EXERCISE FORM

Your completed form should be returned by fax or
mail to:  Stock Administration.  Phone: (408) 990-4120.

Fax:  (408)
990-4276.  Incomplete forms may cause
a delay in processing/receipt of funds.

	
  Date:

  	
   

  	
  Country
  in Which You Work:

  	
   

  	
  Dept. #:

  	
   

  	
  Emp. ID:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
  SS#:

  	
   

  	
  Work Phone:

  	
   

  	 

													

 

	
  Home Address:

  	
   

  	
   

  
	
   

  	
   

  	
  (Number and Street)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (City, State, Zip Code/Postal Code, Country)

  

 

1.              I hereby elect to exercise the
following stock option(s):

	
  Grant #

  	
   

  	
   

  	
  Grant

  Date

  	
   

  	
   

  	
  Grant Type

  (ISO/NQ)

  	
   

  	
   

  	
  Grant Price

  Per Share

  	
   

  	
   

  	
  # of Shares

  to Exercise

  	
   

  	
   

  	
  Amount Due

  For Stock

  	
   

  	
   

  	
  Amount Due

  For Taxes **

  	
   

  
	
                  

  	
   

  	
   

  	
                  

  	
   

  	
   

  	
                  

  	
   

  	
   

  	
                  

  	
   

  	
   

  	
                  

  	
   

  	
   

  	
                  

  	
   

  	
   

  	
                  

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
                  

  	
   

  	
   

  	
                  

  	
   

  	
   

  	
                  

  	
   

  	
   

  	
                  

  	
   

  	
   

  	
                  

  	
   

  	
   

  	
                  

  	
   

  	
   

  	
                  

  	
   

  

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  TOTALS

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

2.     Method of Exercise (Please Check
One):

               Cash Exercise
(Exercise-and-Hold)

               Same-Day-Sale (Exercise and
sell all shares)

It is your responsibility to contact a broker to
sell your stock option shares.

Stock Administration will not contact a broker for you.

**Tax
Due: (U.S. employees ONLY) For NQ option exercise -
We are required to collect Federal Income Tax, Applicable State Income Tax,
Medicare, Social Security, and SDI.

3.              Please deliver all shares to: (If
shares are to be delivered to a broker, you must establish an account prior to
delivery.)

	
  

  	
   

  	
  Broker Name:

  	
   

  	
  Acct.#:

  	
   

  	
   

  
	
   

  	
   

  	
  Broker DTC#:

  	
   

  	
  Broker Phone:

  	
   

  	
   

  
	
   

  	
   

  	
  Mail stock certificate to
  my home address as listed above (make sure the address is legible.)

  
								

 

4.              I understand that Stock
Administration will not process my exercise until all information has been
provided.

 10
 

I understand that I should read a current copy of the Company’s
Prospectus prior to making any investment; and that, if necessary, I can
contact the Company directly to obtain one.

I understand that, if I am an officer or director of the Company, I may
be subject to additional requirements under Federal securities regulation which
pertain to this type of transaction.

	
  

  	
   

  	
   

  
	
  Signature

  	
   

  	
  Print Name

  

 

 11Exhibit 10.4

QUICKLOGIC
CORPORATION

1999
STOCK PLAN

NOTICE
OF GRANT OF STOCK PURCHASE RIGHT

Unless
otherwise defined herein, the terms defined in the 1999 Stock Plan (the “Plan”)
will have the same defined meanings in this Notice of Grant of Stock Purchase
Right and the Restricted Stock Purchase Agreement, attached hereto as Exhibit A
(the “Restricted Stock Purchase Agreement” or “Agreement”).

QuickLogic
Corporation is pleased to inform you that you, the undersigned Purchaser, have
been granted a right to purchase Restricted Stock (hereinafter referred to as
the “Shares”) of the Company, subject to the terms and conditions of the Plan
and this Agreement, as follows:

	
  Purchaser:                                                                      

  
	
  Grant Number:                                                              

  
	
  Board Notification Date:                                               

  
	
  Date of Grant:                                                                

  
	
  Expiration Date:                                                            

  
	
  Vesting Commencement Date:                                     

  
	
  Exercise Price, per Share:                                             

  
	
  Number of Shares Granted:                                          

  
	
   

  
	
  Vesting Schedule (Check one):

  

 

Exercise and Vesting Schedule: This
grant is exercisable immediately, in whole or in part, and the Restricted Stock
shall vest according to the following vesting schedule. Purchaser will generally be taxed when the Restricted
Stock vests and the Company’s repurchase option has lapsed.  The Restricted Stock is intended (but not
guaranteed) to vest in an open trading window under the Company’s insider
trading policy.  This should help enable
the Purchaser to sell a portion of the delivered shares to cover the Purchaser’s
tax obligations.  If the trading window
is closed on a scheduled vesting date, vesting of the Restricted Stock will be
delayed until the trading window is open. A Purchaser vests in the Restricted
Stock in accordance with the following vesting schedule, so long as a
Vesting Cessation Date has not yet occurred:

1)     25% of the shares will vest on the first open
trading day under the Company’s insider trading policy occurring on or after
the one year anniversary of the Vesting Commencement Date; thereafter, 1/16 of
the Shares will vest on the first open trading day under the Company’s insider
trading policy on or after each successive quarter following the first anniversary,
so as to be 100% vested on the first open trading day on or after the fourth
anniversary of the Vesting Commencement Date.

2)     25% of the shares are scheduled to vest
on the first open trading day under the Company’s insider trading policy on or
after each quarter following the Vesting Commencement Date, so as to be 100%
vested on the first open trading day on or after the first anniversary of the
Vesting Commencement Date.

3)     The shares are
immediately vested upon grant

4)     Other:                                                               

In no event shall the Shares vest after the 10th anniversary of the Date of
Grant.

For
instance, assume a Purchaser received a stock purchase right to acquire 160
shares on 2/15/06 under scheduled vesting date alternative 1, and that the
Purchaser exercised the purchase right. If the trading window under the Company’s
insider trading policy is open on 2/15/07, 5/15/07 and 8/15/07, the Purchaser
would vest 40 shares on 2/15/07, 10 shares on 5/15/07 and 10 shares on 8/15/07.
If the trading window was closed 3/1/07 and reopened 8/20/07, the Purchaser
would vest 40 shares on 2/15/07 and 20 shares on 8/20/07.

In
these examples, if the Purchaser ceased providing services to the Company as a
director, employee or consultant on 6/1/07, the individual would have vested in
50 shares in the open trading window scenario, and in 40 shares under the
closed trading window scenario.

YOU MUST EXERCISE
THIS STOCK PURCHASE RIGHT BEFORE THE EXPIRATION DATE OR IT WILL TERMINATE AND
YOU WILL HAVE NO FURTHER RIGHT TO PURCHASE THE SHARES.

Non-Transferability
of Stock Purchase Right. 
This Stock Purchase Right may not be transferred, assigned, pledged or
hypothecated in any manner (whether by operation of law or otherwise) otherwise
than by will or by the laws of descent or distribution and may be exercised
during the lifetime of Purchaser only by Purchaser.  Upon
any attempt to transfer, assign, pledge, hypothecate or otherwise dispose of
this Stock Purchase Right or the unreleased shares, or any right or privilege
conferred hereby, or upon any attempted sale under any execution, attachment or
similar process, this right and the rights and privileges conferred hereby
immediately will become null and void.  The
terms of the Restricted Stock Purchase Agreement, Plan and Notice of Grant of
Stock Purchase Right will be binding upon the executors, administrators, heirs,
successors and assigns of the Purchaser.

Termination of
Relationship as a Service Provider or Provision of Notice of Employment
Termination; Vesting Cessation Date.  If Purchaser (i) ceases to provide ongoing
service as a Service Provider (for any reason and regardless of any appropriate
court finding such termination unfair or irregular on any basis whatsoever), or
(ii) the Purchaser is provided with notice of termination of employment
(for any reason and regardless of any appropriate court finding the related
termination unfair or irregular on any basis whatsoever) and ceases to provide
ongoing service during the notice period, the Company will, in the period
commencing (a) on the earlier of the date of such cessation as a
Service Provider or the last date of ongoing service after 

 2
 

receiving a notice of
termination of employment, or (b) such later date as required by Applicable
Law  (the earlier of these dates or such later date required by Applicable
Law is referred to herein as the “Vesting Cessation Date”, as reasonably fixed
and determined by the Administrator) and ending three months later, have an
irrevocable, exclusive option to repurchase up to that number of Shares which
constitute the Unreleased Shares (as defined in Section 4) at the original
Exercise Price per share (the “Repurchase Price”) (the “Repurchase Option”). At
the sole discretion of Company, subject to Applicable Law, Purchaser may be
paid a lump sum for their cash compensation in lieu of notice.

The Restricted Stock Purchase Agreement
(including exhibits A-1 to A-3) and the Plan are incorporated herein by
reference.  This Notice of Grant, the
Plan and Restricted Stock Purchase Agreement (including exhibits A-1 to A-3
referenced therein) constitute the entire agreement of the parties with respect
to the subject matter hereof and supersede in their entirety all prior
undertakings and agreements of the Company and Purchaser with respect to the
subject matter hereof, and may not be modified adversely to the Purchaser’s
interest except by means of an express written contract signed by the Company
and Purchaser.  The Company will
administer the Plan from the United States of America, and any disputes will be
settled in the U.S. according to U.S. law. 
This Notice of Grant of Stock Purchase Right, Restricted Stock Purchase
Agreement (including exhibits A-1 to A-3), Plan and all awards are governed by
the internal substantive laws, but not the choice of law principles, of the
State of California, United States of America. 
Notwithstanding anything to the contrary in the Plan or the Agreement
(including exhibits A-1 to A-3), the Company reserves the right to revise this
Agreement as it deems necessary or advisable, in its sole discretion and
without Purchaser’s consent, to comply with Section 409A or to otherwise
avoid imposition of any additional tax or income recognition under
Section 409A prior to the actual issuance of Restricted Stock or prior to
the lapse of repurchase rights under this Agreement.

By
Purchaser’s signature and the signature of the Company’s representative below,
Purchaser and the Company agree that this Stock Purchase Right is granted under
and governed by the terms and conditions of the Plan, the Restricted Stock
Purchase Agreement (including exhibits A-1 to A-3) and this Notice of Grant of
Stock Purchase Right.  Purchaser has
reviewed the Plan, the Restricted Stock Purchase Agreement (including exhibits
A-1 to A-3) and this Notice of Grant of Stock Purchase Right, has had an
opportunity to obtain the advice of counsel prior to executing this Agreement
and fully understands all provisions of the Plan, the Restricted Stock Purchase
Agreement (including exhibits A-1 to A-3) and this Notice of Grant of Stock
Purchase Right.  Purchaser agrees to
accept as binding, conclusive and final all decisions or interpretations of the
Administrator upon any questions relating to the Plan, the Restricted Stock
Purchase Agreement (including exhibits A-1 to A-3) and this Notice of Grant of
Stock Purchase Right.  Purchaser further
agrees to notify the Company upon any change in the residence indicated in the
Notice of Grant of Stock Purchase Right.

 3
 

 

	
  PURCHASER

  	
   

  	
  QUICKLOGIC CORPORATION

  
	
   

  	
   

  	
   

  
	
  

  	
   

  	
  By:

  	
   

  
	
  Signature

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
  Print Name

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
  Date: 

  	
   

  
							

 

	
  PURCHASER ADDRESS:

  
	
   

  
	
   

  	
   

  
	
   

  
	
   

  	
   

  

 

	
  BENEFICIARY:

  
	
   

  
	
   

  	
   

  
	
  Print Name

  
	
   

  
	
  Date: 

  	
   

  	
   

  
			

 

Consent of spouse required if beneficiary is someone other
than spouse

	
  Signature:

  	
   

  	
   

  
	
   

  
	
  Print Name:

  	
   

  	
   

  
	
   

  
	
  Date:

  	
   

  	
   

  
						

 

Please
return this Notice of Grant of Stock Purchase Right, Assignment Separate from
Certificate, and Joint Escrow Instructions to the Stock Administrator of the
Company.

(Form of Notice as of August 2007)

 4
 

EXHIBIT A

RESTRICTED
STOCK PURCHASE AGREEMENT 

1.             Sale of Stock.  The Company hereby agrees to sell to the
individual named in the Notice of Grant of Stock Purchase Right (the “Purchaser”),
and the Purchaser hereby agrees to purchase the number of Shares set forth in
the Notice of Grant of Stock Purchase Right, at the exercise price per share
set forth in the Notice of Grant of Stock Purchase Right (the “Exercise Price”),
and subject to the terms and conditions of the Plan, which is incorporated
herein by reference.  In the event of a
conflict between the terms and conditions of the Plan and this Agreement, the
terms and conditions of the Plan will prevail.

2.             Payment of
Purchase Price.  Upon exercise of the
Stock Purchase Right, Purchaser shall deliver to the Company the aggregate
Exercise Price for the Shares by cash or check, together with any and all
withholding taxes due in connection with the purchase of the Shares.

3.             Repurchase Option.

(a)           The Repurchase Option
may be exercised by the Company by delivering written notice to the Purchaser
or the Purchaser’s executor (with a copy to the Escrow Holder (as defined in
Section 7)) AND, at the Company’s option, (i) by delivering to the Purchaser or
the Purchaser’s executor a check in the amount of the aggregate Repurchase
Price, or (ii) by the Company canceling an amount of the Purchaser’s
indebtedness to the Company equal to the aggregate Repurchase Price, or (iii)
by a combination of (i) and (ii) so that the combined payment and cancellation
of indebtedness equals such aggregate Repurchase Price.  Upon delivery of such notice and the payment
of the aggregate Repurchase Price in any of the ways described above, the
Company will become the legal and beneficial owner of the Unreleased Shares
being repurchased and all rights and interests therein or relating thereto, and
the Company will have the right to retain and transfer to its own name the
number of Unreleased Shares being repurchased by the Company.

(b)           If no cash
consideration was used to pay for the Restricted Stock (for example, if the
Shares were purchased by prior Service), the Repurchase Option will be
exercised by the Company by delivering written notice to the Purchaser or the
Purchaser’s executor (with a copy to the Escrow Holder (as defined in Section 7)).
Upon delivery of such notice, the Company will become the legal and beneficial
owner of the Unreleased Shares being repurchased and all rights and interests
therein or relating thereto, and the Company will have the right to retain and
transfer to its own name the number of Unreleased Shares being repurchased by
the Company.

(c)           Whenever the Company
will have the right to repurchase the Unreleased Shares hereunder, the Company
may designate and assign one or more employees, officers, directors or
shareholders of the Company or other persons or organiza­tions to exercise all
or a part of the Company’s Repurchase Option to purchase all or a part of the
Unreleased Shares.  If the Fair Market
Value of the Unreleased Shares to be repurchased on the date of such
designation or assignment (the “Repurchase FMV”) exceeds the aggregate
Repurchase Price of the

 5
 

Unreleased Shares, then the
Administrator may require each such designee or assignee to pay the Company
cash equal to the difference between the Repurchase FMV and the aggregate
Repurchase Price of Unreleased Shares to be purchased.

(d)           If the Company or its
assignee does not elect to exercise the Repurchase Option conferred above by
giving the requisite notice within three (3) months following Purchaser’s
Vesting Cessation Date, the Repurchase Option will terminate.

4.             Release of Shares
From Repurchase Option.

(a)           The Repurchase Option
shall lapse as the Shares vest, as set forth in the Notice of Grant of Stock
Purchase Right, or any other duly authorized written agreement between Company
and Purchaser.

(b)           Any of the Shares which
have not yet been released from the Company’s Repurchase Option are referred to
herein as “Unreleased Shares”.

(c)           The Shares which have
been released from the Company’s Repurchase Option will be delivered to the
Purchaser at the Purchaser’s request (see Section 7).

5.             Payment after Vesting.  Any
Restricted Stock that vests in accordance with the Notice of Grant of Stock
Purchase Right will be released from escrow to Purchaser (or in the event of
the Purchaser’s death, to Purchaser’s estate), provided that to the extent
determined appropriate by the Company, any federal, state and local withholding
taxes, fringe benefit tax (“FBT”) or National Insurance Contribution (“NIC”)
tax with respect to such Restricted Stock will be paid by the Purchaser in the
manner allowed by the Company.

6.             Restriction on
Transfer.  Except for the escrow
described in Section 7 or transfer of the Shares to the Company or its
assignees contemplated by this Agreement, none of the Shares or any beneficial
interest therein will be transferred, assigned,
pledged or hypothecated in any way (whether by operation of law or otherwise)
and will not be subject to sale under execution, attachment or similar process,
encumbered or otherwise disposed of in any way until the release of such
Shares from the Company’s Repurchase Option in accordance with the provisions
of this Agreement, other than by will or the laws of descent and
distribution.  Upon any attempt to transfer, assign, pledge, hypothecate or otherwise
dispose of this grant, or any right or privilege conferred hereby, or upon any
attempted sale under any execution, attachment or similar process, this grant
and the rights and privileges conferred hereby immediately will become null and
void.

7.             Escrow of Shares.

(a)           To ensure the
availability for delivery of the Purchaser’s Unreleased Shares upon exercise of
the Repurchase Option by the Company, the Purchaser will, upon exercise of the
Stock Purchase Right, deliver and deposit with an escrow holder designated by
the Company (the “Escrow Holder”) the share certificates representing the Unreleased
Shares, together with the Assignment Separate from Certificate (the “Stock
Assignment”) duly endorsed in blank, attached hereto as Exhibit A-1.  The Unreleased Shares and Stock Assignment
will be 

 6
 

held by the Escrow Holder,
pursuant to the Joint Escrow Instructions of the Company and Purchaser attached
as Exhibit A-2 hereto, until such time as the Company’s Repurchase
Option expires.

(b)           The Escrow Holder will
not be liable for any act it may do or omit to do with respect to holding the
Unreleased Shares in escrow and while acting in good faith and in the exercise
of its judgment.

(c)           If the Company or any
assignee exercises its Repurchase Option hereunder, the Escrow Holder, upon
receipt of written notice of such option exercise from the proposed transferee,
will take all steps necessary to accomplish such transfer.

(d)           When the Repurchase
Option has been exercised or expires unexercised or a portion of the Shares has
been released from such Repurchase Option, upon Purchaser’s request the Escrow
Holder will promptly cause a new certificate to be issued for such released
Shares and will deliver such certificate to the Company or the Purchaser, as
the case may be.

(e)           Subject to the terms
hereof, once the Stock Purchase Right is exercised, the Purchaser will have all
the rights of a shareholder, and shall be a shareholder when his or her
purchase is entered upon the records of the duly authorized transfer agent of
the Company, including without limitation, the right to vote the Shares and
receive any cash dividends declared thereon. 
No adjustment will be made for a dividend or other right for which the
record date is prior to the date the Stock Repurchase Right is exercised,
except as provided in Section 14 of the Plan. 
If, from time to time during the term of the Company’s Repurchase
Option, there is (i) any stock dividend, stock split or other change in the
Shares, or (ii) any merger or sale of all or substantially all of the assets or
other acquisition of the Company, any and all new, substituted or additional
securities to which the Purchaser is entitled by reason of the Purchaser’s
ownership of the Shares will be immediately subject to this escrow, deposited
with the Escrow Holder and included thereafter as “Shares” for purposes of this
Agreement and the Company’s Repurchase Option, in an amount proportional to the
Unreleased Shares.

8.             Restrictive
Legends; Stop-Transfer Orders; Refusal to Transfer.

(a)           Purchaser understands
and agrees that the Company will cause the legends set forth below or legends
substantially equivalent thereto, to be placed upon any certificate(s)
evidencing ownership of the Shares together with any other legends that may be
required by the Company or by applicable state or federal securities laws:

THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT
TO CERTAIN RESTRICTIONS ON TRANSFER AND A REPURCHASE OPTION HELD BY THE ISSUER
OR ITS ASSIGNEE(S) AS SET FORTH IN THE RESTRICTED STOCK PURCHASE AGREEMENT
BETWEEN THE ISSUER AND THE ORIGINAL HOLDER OF THESE SHARES, A COPY OF WHICH MAY
BE OBTAINED AT THE PRINCIPAL OFFICE OF THE ISSUER.  SUCH TRANSFER RESTRIC­TIONS, RIGHT OF FIRST
REFUSAL AND

 7
 

REPURCHASE OPTION ARE BINDING ON TRANSFEREES OF THESE
SHARES.

(b)           Stop-Transfer
Notices.  Purchaser agrees that, in
order to ensure compliance with the restrictions referred to herein, the
Company may issue appropriate “stop transfer” instructions to its transfer
agent, if any, and that, if the Company 
transfers its own securities, it may make appropriate notations
to the same effect in its own records.

(c)           Refusal to Transfer.  The Company will not be required (i) to
transfer on its books any Shares that have been sold or otherwise transferred
in violation of any of the provisions of this Agreement or (ii) to treat
as owner of such Shares or to accord the right to vote or pay dividends to any
purchaser or other transferee to whom such Shares will have been so
transferred.

9.             Tax Withholding
and Consequences.  Regardless of any
action the Company takes with respect to any or all income tax, social
insurance, payroll tax, payment on account or other tax-related withholding,
fringe benefit tax (“FBT”) or National Insurance Contribution (“NIC”) relating
to the grant, vesting, release, cancellation or transfer of the related Shares
(“Tax-Related Items”), Purchaser acknowledges that the ultimate liability for
all Tax-Related Items legally due by Purchaser are and remain Purchaser’s
responsibility and that the Company (i) make no representations or
undertakings regarding the treatment of any Tax-Related Items in connection
with any aspect of the grant of Restricted Stock, including the grant of a
Stock Purchase Right, vesting and lapse of repurchase rights, the subsequent
sale of shares and/or the receipt of any dividends; and (ii) do not commit
to structure the terms of the grant of a Stock Purchase Right or the terms of
underlying Restricted Stock to reduce or eliminate Purchaser’s liability for
Tax-Related Items.

Purchaser agrees to make appropriate arrangements with
the Company (or the Parent or Subsidiary employing or retaining Purchaser) in
accordance with the procedures offered by the Company for the satisfaction of
all federal, state, local and foreign income and employment tax withholding
requirements, FBT or NIC tax applicable to the grant, vesting or delivery of
Shares pursuant to this award of Stock Purchase Rights.  Purchaser also agrees to reimburse or pay the
Company (including its Subsidiaries) in full, any liability that the Company
incurs towards any FBT or NIC paid or payable in respect of the
grant, vesting, release, cancellation, transfer or delivery of the Shares,
within the time and in the
manner
prescribed by the Company.  The Administrator may in its sole discretion
determine amounts and whether the withholding taxes and/or FBT and/or NIC with
respect to such Shares will be paid by cash, selling a portion of vested
shares, electing to have the Company withhold
otherwise deliverable Shares having a value equal to the minimum amount
statutorily required to be withheld, selling a sufficient number of such Shares otherwise deliverable to
Purchaser through such means as the Company may determine in its sole
discretion (whether through a broker or otherwise) having a Fair Market Value
equal to the amount required, by directing of a portion of the proceeds to the
Company, by payroll withholding, by delivering already vested and owned Shares
to the Company, by delivering net shares, by direct payment from the Purchaser
to the Company, by some other method, or by some combination thereof.  Purchaser agrees to execute any additional
documents requested by the Company for such reimbursement of such taxes to the
Company.

 8
 

Purchaser grants to the Company the
irrevocable authority, as agent of Purchaser and on Purchaser’s behalf, to sell
or procure the sale of sufficient Shares subject to this award of Stock
Purchase Rights so that the net proceeds receivable by the Company are as far
as possible equal to but not less than the amount of any withholding tax, FBT
or NIC the Purchaser is liable for (including pursuant to the preceding
paragraph) and the Company will account to Purchaser for any balance.

Purchaser acknowledges
and agrees that the Company may refuse to deliver Shares if Purchaser has not
made appropriate arrangements with the Company to satisfy tax withholding
requirements, FBT or NIC.

Set forth below is a
brief summary as of the date of grant of this Stock Purchase Right of some of
the federal tax consequences of exercise of this Stock Purchase Right and
disposition of the Shares.  THIS SUMMARY
IS NECESSARILY INCOMPLETE, AND THE TAX LAWS AND REGULATIONS ARE SUBJECT TO
CHANGE.

As the Company’s repurchase right lapses, Purchaser will immediately
recognize compensation income in an amount equal to the difference between the
Fair Market Value of the stock at the time the Company’s repurchase right
lapses and the amount paid for the stock, if any (the “Spread”), if you are
a U.S taxpayer. If you are a non-U.S. taxpayer, you will be subject to applicable taxes in your
jurisdiction.

Alternatively, for U.S. taxpayers the Spread
on all of the Shares will be recognized by Purchaser in connection with the
exercise of the stock purchase right for shares subject to the Repurchase
Option, if an election under Section 83(b) of the Code is filed with the Internal
Revenue Service within thirty (30) days of the date of exercise of the right to
purchase stock.  The form for making this
election is attached as Exhibit A-3 hereto.

If Purchaser is an Employee or former
Employee, the Spread will be subject to tax withholding by the Company, and the
Company will be entitled to a tax deduction in the amount at the time the
Purchaser recognizes ordinary income with respect to a Stock Purchase
Right.  Purchaser agrees to make appropriate
arrangements with the Company (or the Parent or Subsidiary employing or
retaining Purchaser) for the satisfaction of all federal, state, and local
income and employment tax withholding requirements applicable to the purchase
of Shares or the lapse of repurchase rights here­under.  Purchaser acknowledges and agrees that the
Company may refuse to honor the exercise and refuse to deliver Shares if such
withholding amounts are not delivered at the time of purchase.

The Administrator, in its sole
discretion and pursuant to such procedures as it may specify from time to time,
may permit the Purchaser to satisfy such tax withholding obligation, in whole
or in part by one or more of the following (without limitation): (i) paying cash,  (ii) delivering to the Company already
vested and owned Shares having a Fair Market Value equal to the minimum amount
statutorily required to be withheld, (iii) electing to
have the Company withhold otherwise deliverable Shares having a value equal to
the minimum amount statutorily required to be withheld, or (iv) selling
a sufficient number of such Shares otherwise deliverable to Purchaser through
such means as the Company may determine in its sole discretion (whether through
a 

 9
 

broker or otherwise) having a Fair Market
Value equal to the minimum amount required to be withheld.

PURCHASER
ACKNOWLEDGES THAT IT IS THE PURCHASER’S SOLE RESPONSIBILITY AND NOT THE COMPANY’S
TO FILE TIMELY THE ELECTION UNDER SECTION 83(b), EVEN IF THE PURCHASER REQUESTS
THE COMPANY OR ITS REPRESENTATIVES TO MAKE THIS FILING ON THE PURCHASER’S BEHALF.

10.           No Guarantee of
Continued Service.  PURCHASER
ACKNOWLEDGES AND AGREES THAT THE RELEASE OF SHARES FROM THE REPURCHASE OPTION
OF THE COMPANY PURSUANT TO SECTION 4 HEREOF IS EARNED ONLY BY CONTINUING
SERVICE AS  A SERVICE PROVIDER AT THE
WILL OF THE COMPANY  (NOT THROUGH THE ACT
OF BEING HIRED OR PURCHASING SHARES HERE­UNDER).  PURCHASER FURTHER ACKNOWLEDGES AND AGREES
THAT THIS AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREUNDER AND THE VESTING
SCHEDULE SET FORTH HEREIN DO NOT CONSTITUTE AN EXPRESS OR IMPLIED PROMISE OF
CONTINUED ENGAGEMENT AS A SERVICE PROVIDER FOR THE VESTING PERIOD, FOR ANY
PERIOD, OR AT ALL, AND WILL NOT INTERFERE WITH PURCHASER’S RIGHT OR THE COMPANY’S
RIGHT TO TERMI­NATE PURCHASER’S CONTINUOUS STATUS AT ANY TIME, WITH OR WITHOUT
CAUSE, EXCEPT AS OTHERWISE REQUIRED BY APPLICABLE LAW. ACCORDINGLY, PURCHASER
DOES NOT HAVE ANY ENTITLEMENT TO THE UNDERLYING SHARES IF PURCHASER RESIGNS OR
IF THERE IS A VESTING CESSATION DATE FOR ANY REASON PRIOR TO THE DATE THAT THE
RESTRICTED STOCK VESTS.

(a)           Nature of Grant.
In accepting the offer to acquire Shares, Purchaser acknowledges that:
(a) the Plan is established voluntarily by the Company, it is
discretionary in nature and it may be modified, amended, suspended or
terminated by the Company at any time, unless otherwise provided in the Plan
and this Agreement; (b) the grant of a Stock Purchase Right and Restricted
Stock is voluntary and occasional and does not create any contractual or other
right to receive future grants of Stock Purchase Rights or Restricted Stock, or
benefits in lieu of such grants even if such awards have been granted
repeatedly in the past; (c) all decisions with respect to future Stock
Purchase Rights, if any, will be at the sole discretion of the Company; (d) Purchaser
is voluntarily participating in the Plan; (e) the grant of Stock Purchase
Rights and Restricted Stock is an extraordinary item that does not constitute
compensation of any kind for services of any kind rendered to the Company;
(f) the Stock Purchase Right and Restricted Stock are not part of normal
or expected compensation or salary for any purposes, including, but not limited
to, resignation, termination, redundancy, bonuses, long-service awards, pension
or retirement benefits, life insurance, 401(k) profit sharing or similar
payments; (g) the future value of the Shares is unknown and cannot be
predicted with certainty; and (h) that the Company will have the exclusive
discretion to determine when Purchaser is no longer providing ongoing service
to the Company for purposes of administering Purchaser’s grant of Stock
Purchase Rights or Restricted Stock.

(b)           Data Privacy. By
accepting this Stock Purchase Right or any Restricted Stock in payment thereof,
Purchaser explicitly and unambiguously consents to the collection, use 

 10
 

and transfer, in electronic or
other form, of Purchaser’s personal data as described in this document by and
among, as applicable, the Company, its subsidiaries and affiliates for the
exclusive purpose of implementing, administering and managing Purchaser’s
participation in the Plan. For the purpose of implementing, administering and
managing the Plan, Purchaser understands that the Company  holds certain personal information about
Purchaser, including, but not limited to, Purchaser’s name, home address and
telephone number, date of birth, Tax ID or other identification number, salary,
nationality, job title, any equity or directorships held in the Company,
details of all equity awards or any entitlement to Shares awarded, canceled,
exercised, vested, unvested or outstanding in Purchaser’s favor, for the
purpose of implementing, administering and managing the Plan (“Data”).
Purchaser understands that Data may be transferred to any third parties
assisting in the implementation, administration and management of the Plan,
that these recipients may be located in Purchaser’s country or elsewhere. The
Company, as a global company, may transfer Purchaser’s personal data to
countries which may not provide an adequate level of protection. The Company,
however, is committed to providing a suitable and consistent level of
protection for Purchaser’s personal data regardless of the country in which it
resides. Purchaser understands that he or she may request information regarding
the Company’s stock plan administration by contacting Human Resources, the
Chief Financial Officer or their designee. Purchaser authorizes the recipients
to receive, possess, use, retain and transfer the Data, in electronic or other
form, for the purposes of implementing, administering and managing Purchaser’s
participation in the Plan, including any requisite transfer of such Data as may
be required to a broker or other third party with whom Purchaser deposits any
Shares issued at vesting or other scheduled payout. Purchaser understands that
Data will be held as long as is necessary to implement, administer and manage
the Plan. Purchaser understands that he or she may, at any time, view Data,
request additional information about the storage and processing of Data,
require any necessary amendments to Data or refuse or withdraw the consents
herein, in any case without cost, by contacting in writing Human Resources or
the Chief Financial Officer. Purchaser understands, however, that refusing or
withdrawing his or her consent may affect Purchaser’s ability to participate in
the Plan. For more information on the consequences of Purchaser’s refusal to
consent or withdrawal of consent, Purchaser understands that he or she may
contact Human Resources, the Chief Financial Officer or their designee.

(c)           Electronic Delivery.
The Company may, in its sole discretion, decide to deliver any documents
related to the award of Stock Purchase Rights or issuance of Restricted Stock
and participation in the Plan or future Stock Purchase Rights or Restricted Stock
that may be awarded under the Plan by electronic means or to request Purchaser’s
consent to participate in the Plan by electronic means. Purchaser hereby
consents to receive such documents by electronic delivery and, if requested, to
agree to participate in the Plan through an on-line or electronic system
established and maintained by the Company or another third party designated by
the Company.

(d)           Value of Shares.  The future value of the Shares is unknown and
cannot be predicted with certainty.

(e)           Choice of Language.

 11
 

(i)            For
Employees of Canadian Locations:  The
undersigned agrees that it is his or her express wish that this form and all
documents relating to his or her participation in the scheme be drawn in the
English language only.  Le soussigné
convient que sa volonté expresse est que ce formulaire ainsi que tous les
documents se rapportant à sa participation au régime soient rédigés en langue
anglaise seulement.

(ii)           For
Employees of Locations Other than Canada: 
Purchaser has received this Agreement and any other related
communications and consents to having received these documents solely in
English.

11.           Notices.  Any notice, demand or request required or
permitted to be given by either the Company or the Purchaser pursuant to the
terms of this Agreement will be in writing and will be deemed given when
delivered personally or deposited in the U.S. mail, First Class with postage
prepaid, and addressed to the parties at the addresses of the parties set forth
at the end of this Agreement or such other address as a party may request by
notifying the other in writing, or when delivered electronically pursuant to
Section 9(c).

Any notice to the Escrow Holder will be sent to the
Company’s address with a copy to the other party not sending the notice.

12.           No Waiver.  Either party’s failure to enforce any
provision or provisions of this Agreement will not in any way be construed as a
waiver of any such provision or provisions, nor prevent that party from
thereafter enforcing each and every other provision of this Agreement.  The rights granted both parties herein are
cumulative and will not constitute a waiver of either party’s right to assert
all other legal remedies available to it under the circumstances.

13.           Successors and
Assigns.  The Company may assign any
of its rights under this Agreement to single or multiple assignees, and this
Agreement will inure to the benefit of the successors and assigns of the
Company.  Subject to the restrictions on
transfer herein set forth, this Agreement will be binding upon Purchaser and
his or her heirs, executors, administrators, successors and assigns.

14.           Binding Agreement. 
Subject to the limitation on the transferability of this grant contained
herein, this Agreement will be binding upon and inure to the benefit of the
heirs, legatees, legal representatives, successors and assigns of the parties
hereto.

15.           Additional Conditions to Issuance of Stock.  If
at any time the Company will determine, in its discretion, that the listing,
registration or qualification of the Shares upon any securities exchange or
under any state or federal law, or the consent or approval of any governmental
regulatory authority is necessary or desirable as a condition to the issuance
of Shares to the Purchaser (or Purchaser’s estate) or the release from escrow,
such issuance or release from escrow will not occur unless and until such
listing, registration, qualification, consent or approval will have been
effected or obtained free of any conditions not acceptable to the Company.  The Company will make all reasonable efforts
to meet the requirements of any such state or federal law or securities
exchange and to obtain any such consent or approval of any such governmental
authority.

 12
 

16.           Administrator Authority.  The
Administrator has the power to interpret the Plan, the Notice of Grant and this
Agreement and to adopt such rules for the administration, interpretation and
application thereof as are consistent therewith and to interpret or revoke any
such rules (including, but not limited to, the determination of whether or not
any Stock Purchase Rights have vested).  Any
dispute regarding the interpretation of this Agreement will be submitted by
Purchaser or by the Company forthwith to the Administrator which will review
such dispute at its next regular meeting. 
All actions taken and all
interpretations and determinations made by the Administrator in good faith will
be final and binding upon Purchaser, the Company and all other interested
persons.  No member of the Administrator
will be personally liable for any action, determination or interpretation made
in good faith with respect to the Plan, the Notice of Grant or this Agreement.

17.           Captions.  Captions provided herein are
for convenience only and are not to serve as a basis for interpretation or
construction of this Agreement.

18.           Agreement Severable.  In
the event that any provision in this Agreement will be held invalid or
unenforceable, such provision will be severable from, and such invalidity or
unenforceability will not be construed to have any effect on, the remaining
provisions of this Agreement.

19.           Modifications to the Agreement.  This
Agreement constitutes the entire understanding of the parties on the subjects
covered.  Purchaser expressly warrants
that he or she is not accepting this Agreement in reliance on any promises,
representations, or inducements other than those contained herein.  Modifications to this Agreement or the Plan
can be made only in an express written contract executed by a duly authorized
officer of the Company.  Notwithstanding
anything to the contrary in the Plan or this Agreement, the Company reserves
the right to revise this Agreement as it deems necessary or advisable, in its
sole discretion and without the consent of Purchaser, to comply with Section
409A of the Internal Revenue Code of 1986, as amended (the “Code”) or to
otherwise avoid imposition of any additional tax or income recognition under
Section 409A of the Code in connection to this award of Stock Purchase Rights.

20.           No Waiver.  Either party’s failure to enforce any
provision or provisions of this Agreement will not in any way be construed as a
waiver of any such provision or provisions, nor prevent that party from
thereafter enforcing each and every other provision of this Agreement.  The rights granted both parties herein are
cumulative and will not constitute a waiver of either party’s right to assert
all other legal remedies available to it under the circumstances.

(Form of Agreement as of August 2007)

 13

EXHIBIT
A-1

ASSIGNMENT
SEPARATE FROM CERTIFICATE

FOR VALUE RECEIVED
I,                                               ,
hereby sell, assign and transfer unto QuickLogic Corporation                       
shares of the Common Stock of QuickLogic Corporation standing in my name on the
books of said corporation represented by Certificate No.       
herewith and do hereby irrevocably constitute and appoint                                                      
to transfer the said stock on the books of the within named corporation with
full power of substitution in the premises.

This Stock
Assignment may be used only in accordance with the Restricted Stock Purchase
Agreement between QuickLogic Corporation and the undersigned dated                     ,
          (the “Agreement”).

	
  Dated:

  	
   

  	
  ,

  	
   

  	
   

  	
  Signature:

  	
   

  	
   

  

 

INSTRUCTIONS:
Please do not fill in any blanks other than the signature line.  The purpose of this assignment is to enable
the Company to exercise its Repurchase Option as set forth in the Agreement,
without requiring additional signatures on the part of the Purchaser.

EXHIBIT
A-2 

JOINT
ESCROW INSTRUCTIONS

                                 ,
       

QuickLogic
Corporation

1277 Orleans Drive

Sunnyvale, CA  94089

Attention: Corporate
Secretary

Dear Corporate Secretary:

As
Escrow Agent for both QuickLogic Corporation (the “Company”) and the
undersigned purchaser of stock of the Company (the “Purchaser”), you are hereby
authorized and directed to hold the documents delivered to you pursuant to the
terms of that certain Restricted Stock Purchase Agreement (“Agreement”) between
the Company and the undersigned, in accordance with the following instructions:

1.             In the event the Company and/or any
assignee of the Company (referred to collectively for convenience herein as the
“Company”) exercises the Company’s repurchase option set forth in the Agreement
(the “Repurchase Option”), the Company will give to Purchaser and you a written
notice specifying the number of shares of stock to be purchased, the purchase
price, and the time for a closing hereunder at the principal office of the
Company.  Purchaser and the Company
hereby irrevocably authorize and direct you to close the transac­tion
contemplated by such notice in accordance with the terms of said notice.

2.             At the closing, you are directed
(a) to date the stock assignments necessary for the transfer in question,
(b) to fill in the number of shares being transferred, and (c) to
deliver same, together with the certificate evidencing the shares of stock to
be transferred, to the Company or its assignee, against the simultaneous delivery
to you of the purchase price (by cash, a check, or some combination thereof)
for the number of shares of stock being purchased pursuant to the exercise of
the Company’s Repurchase Option.

3.             Purchaser irrevocably authorizes
the Company to deposit with you any certificates evidencing shares of stock to
be held by you hereunder and any additions and substitutions to said shares as
defined in the Agreement.  Purchaser does
hereby irrevocably constitute and appoint you as Purchaser’s attorney-in-fact
and agent for the term of this escrow to execute with respect to such
securities all documents necessary or appropriate to make such securities
negotiable and to complete any transaction herein contemplated.  Subject to the provisions of this
paragraph 3, Purchaser will exercise all rights and privileges of a
shareholder of the Company while the stock is held by you.

4.             Upon written request of the
Purchaser, unless the Company’s Repurchase Option has been exercised, you will
deliver to Purchaser a certificate or certificates representing so many shares
of stock as are not then subject to the Company’s Repurchase Option.  Within four (4) months after cessation of
Purchaser’s continuous employment by or services to the Company, or any parent
or subsidiary of the Company, you will deliver to Purchaser a certificate or
certificates representing the aggregate number of shares held or issued
pursuant to the Agreement and not purchased by the Company or its assignees
pursuant to exercise of the Company’s Repurchase Option.

5.             If at the time of termination of
this escrow you should have in your possession any documents, securities, or
other property belonging to Purchaser, you will deliver all of the same to
Purchaser and will be discharged of all further obligations hereunder.

6.             Your duties hereunder may be
altered, amended, modified or revoked only by a writing signed by all of the
parties hereto.

7.             You will be obligated only for the
performance of such duties as are specifically set forth herein and may rely
and will be protected in relying or refraining from acting on any instrument
reasonably believed by you to be genuine and to have been signed or presented
by the proper party or parties.  You will
not be personally liable for any act you may do or omit to do hereunder as
Escrow Agent or as attorney-in-fact for Purchaser while acting in good faith,
and any act done or omitted by you pursuant to the advice of your own attorneys
will be conclusive evidence of such good faith.

8.             You are hereby expressly authorized
to disregard any and all warnings given by any of the parties hereto or by any
other person or corporation, excepting only orders or process of courts of law
and are hereby expressly authorized to comply with and obey orders, judgments
or decrees of any court.  In case you
obey or comply with any such order, judgment or decree, you will not be liable
to any of the parties hereto or to any other person, firm or corporation by
reason of such compliance, notwithstanding any such order, judgment or decree
being subsequently reversed, modified, annulled, set aside, vacated or found to
have been entered without jurisdiction.

9.             You will not be liable in any
respect on account of the identity, authorities or rights of the parties
executing or delivering or purporting to execute or deliver the Agreement or
any documents or papers deposited or called for hereunder.

10.           You will not be liable for the
outlawing of any rights under the Statute of Limitations with respect to these
Joint Escrow Instructions or any documents deposited with you.

11.           You will be entitled to employ such
legal counsel and other experts as you may deem necessary properly to advise
you in connection with your obligations hereunder, may rely upon the advice of
such counsel, and may pay such counsel reasonable compensation therefore.

 2
 

12.           Your responsibilities as Escrow Agent
hereunder will terminate if you will cease to be an officer or agent of the
Company or if you will resign by written notice to each party.  In the event of any such termination, the Company
will appoint a successor Escrow Agent.

13.           If you reasonably require other or
further instruments in connection with these Joint Escrow Instructions or
obligations in respect hereto, the necessary parties hereto will join in
furnishing such instruments.

14.           It is understood and agreed that
should any dispute arise with respect to the delivery and/or ownership or right
of posses­sion of the securities held by you hereunder, you are authorized and
directed to retain in your possession without liability to anyone all or any
part of said securities until such disputes will have been settled either by
mutual written agreement of the parties concerned or by a final order, decree
or judgment of a court of competent jurisdiction after the time for appeal has
expired and no appeal has been perfected, but you will be under no duty
whatsoever to institute or defend any such proceedings.

15.           Any notice required or permitted
hereunder will be given in writing and will be deemed effectively given upon
personal delivery or upon deposit in the United States Post Office, by
registered or certified mail with postage and fees prepaid, addressed to each
of the other parties thereunto entitled at the following addresses or at such
other addresses as a party may designate by ten (10) days advance written
notice to each of the other parties hereto.

	
  COMPANY:

  	
  QuickLogic
  Corporation

  
	
   

  	
  1277 Orleans
  Drive

  
	
   

  	
  Sunnyvale,
  CA  94089

  
	
   

  	
  Attention: Corporate Secretary

  
	
   

  	
   

  
	
  PURCHASER:

  	
   

  	
   

  
	
  

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  ESCROW AGENT:

  	
  QuickLogic
  Corporation

  
	
   

  	
  1277 Orleans
  Drive

  
	
   

  	
  Sunnyvale,
  CA  94089

  
	
   

  	
  Attention: Corporate Secretary

  

 

16.           By signing these Joint Escrow
Instructions, you become a party hereto only for the purpose of said Joint
Escrow Instructions; you do not become a party to the Agreement.

17.           This instrument will be binding upon
and inure to the benefit of the parties hereto, and their respective successors
and permitted assigns.

 3
 

18.           The Restricted Stock Purchase
Agreement is incorporated herein by reference. 
These Joint Escrow Instructions, the 1999 Stock Plan and the Restricted
Stock Purchase Agreement (including the exhibits referenced therein) constitute
the entire agreement of the parties with respect to the subject matter hereof
and supersede in their entirety all prior undertakings and agreements of the
Escrow Agent, the Purchaser and the Company with respect to the subject matter
hereof, and may not be modified except by means of a writing signed by the
Escrow Agent, the Purchaser and the Company.

19.           These
Joint Escrow Instructions will be governed by, and construed and enforced in
accordance with, the laws of the State of California.

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  QUICKLOGIC
  CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
  PURCHASER:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (Signature)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  (Typed or
  Printed Name)

  
	
   

  	
   

  
	
   

  	
   

  
	
  ESCROW AGENT:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Corporate
  Secretary

  	
   

  
					

 

 4

EXHIBIT
A-3

ELECTION UNDER SECTION 83(b) 

OF THE INTERNAL
REVENUE CODE OF 1986

The undersigned taxpayer
hereby elects, pursuant to the above-referenced Federal Tax Code, to include in
taxpayer’s gross income for the current taxable year, the amount of any compensation
taxable to taxpayer in connection with his receipt of the property described
below:

1.                                       The
name, address, taxpayer identification number and taxable year of the
undersigned are as follows:

	
  NAME:

  	
   

  	
  TAXPAYER:

  	
  SPOUSE:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ADDRESS:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  IDENTIFICATION NO.:

  	
   

  	
  TAXPAYER:

  	
  SPOUSE:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TAXABLE YEAR:

  	
   

  	
   

  	
   

  	
   

  

 

2.                                       The
property with respect to which the election is made is described as follows:          
shares (the “Shares”) of the Common Stock of QuickLogic Corporation (the “Company”).

3.                                       The
date on which the property was transferred is:          
   ,       .

4.                                       The
property is subject to the following restrictions:

The Shares may be
repurchased by the Company, or its assignee, on certain events.  This right lapses with regard to a portion of
the Shares based on the continued performance of services by the taxpayer over
time.

5.                                       The
fair market value at the time of transfer, determined without regard to any
restriction other than a restriction which by its terms will never lapse, of
such property is:

$                        

6.                                       The
amount (if any) paid for such property is:

$                        

The undersigned
has submitted a copy of this statement to the person for whom the services were
performed in connection with the undersigned’s receipt of the above-described
property.  The transferee of such
property is the person per­forming the services in connection with the transfer
of said property.

The undersigned
understands that the foregoing election may not be revoked except with the
consent of the Commissioner.

 

	
  Dated:                      ,        

  	
   

  	
   

  
	
   

  	
   

  	
                                                  ,
  Taxpayer

  
	
  The undersigned spouse of taxpayer joins in this 

  election.

  	
   

  	
   

  
	
  Dated:                      ,        

  	
   

  	
   

  

 

 2

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