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Sample Business Contracts

1993 Stock Option Plan - Artisan Components Inc.

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                           ARTISAN COMPONENTS, INC.
                             1993 STOCK OPTION PLAN
                          (AS AMENDED NOVEMBER, 1997)


    1.  Purposes of the Plan.  The purposes of this Stock Option Plan are to
        --------------------                                                
attract and retain the best available personnel for positions of substantial
responsibility, to provide additional incentive to Employees and Consultants of
the Company and its Subsidiaries and to promote the success of the Company's
business.  Options granted under the Plan may be incentive stock options (as
defined under Section 422 of the Code) or non-statutory stock options, as
determined by the Administrator at the time of grant of an option and subject to
the applicable provisions of Section 422 of the Code, as amended, and the
regulations promulgated thereunder.

    2.  Definitions.  As used herein, the following definitions shall apply:
        -----------                                                         

        (a) "Administrator" means the Board or any of its Committees appointed
             -------------                                                    
pursuant to Section 4 of the Plan.

        (b) "Applicable Laws" means the requirements relating to the
             ---------------                                        
administration of stock option plans under U. S. state corporate laws, U.S.
federal and state securities laws, the Code, any stock exchange or quotation
system on which the Common Stock is listed or quoted and the applicable laws of
any foreign country or jurisdiction where Options are, or will be, granted under
the Plan.

        (c) "Board" means the Board of Directors of the Company.
             -----                                              

        (d) "Code" means the Internal Revenue Code of 1986, as amended.
             ----                                                      

        (e) "Committee" means a Committee appointed by the Board in accordance
             ---------                                                        
with Section 4 of the Plan.

        (f) "Common Stock" means the Common Stock of the Company.
             ------------                                        

        (g) "Company" means Artisan Components, Inc., a Delaware corporation.
             -------                                                         

        (h) "Consultant" means any person, including an advisor, engaged by the
             ----------                                                        
Company or a Parent or Subsidiary to render services and who is compensated for
such services.  The term "Consultant" shall also include directors who are not
Employees.

        (i) "Continuous Status as an Employee or Consultant" means any person,
             ----------------------------------------------                   
including an advisor, who is engaged by the Company or any Parent or Subsidiary
to render services and is compensated for such services, and any director of the
Company whether compensated for such services or not provided that if and in the
event the Company registers any class of any equity security pursuant to the
Exchange Act, the term Consultant shall thereafter not include directors who are
not compensated for their services or are paid only a director's fee by the
Company.
<PAGE>
 
        (j) "Employee" means any person, including officers and directors,
             --------                                                     
employed by the Company or any Parent or Subsidiary of the Company.  The payment
of a director's fee by the Company shall not be sufficient to constitute
"employment" by the Company.

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

        (l) "Fair Market Value" means, as of any date, the value of Common Stock
             -----------------                                                  
determined as follows:

            (i)    If the Common Stock is listed on any established stock
exchange or a national market system including without limitation the National
Market System of the National Association of Securities Dealers, Inc. Automated
Quotation ("NASDAQ") System, its Fair Market Value shall be the closing sales
price for such stock (or the closing bid, if no sales were reported, as quoted
on such exchange or system for the last market trading day prior to the time of
determination) as reported in The Wall Street Journal or such other source as
the Administrator deems reliable;

            (ii)   If the Common Stock is quoted on the NASDAQ System (but not
on the National Market System thereof) or regularly quoted by a recognized
securities dealer but selling prices are not reported, its Fair Market Value
shall be the mean between the high bid and low asked prices for the Common Stock
or;

            (iii)  In the absence of an established market for the Common Stock,
the Fair Market Value thereof shall be determined in good faith by the
Administrator.

        (m) "Incentive Stock Option" means an Option intended to qualify as an
             ----------------------                                           
incentive stock option within the meaning of Section 422 of the Code.

        (n) "Nonstatutory Stock Option" means an Option not intended to qualify
             -------------------------                                         
as an Incentive Stock Option.

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

        (p) "Option" means a stock option granted pursuant to the Plan.
             ------                                                    

        (q) "Option Exchange Program" means a program whereby outstanding
             -----------------------                                     
options are surrendered in exchange for options with a lower exercise price.

        (r) "Optioned Stock" means the Common Stock subject to an Option.
             --------------                                              

        (s) "Optionee" means an Employee or Consultant who receives an Option.
             --------                                                         

                                      -2-
<PAGE>
 
        (t) "Parent" means a "parent corporation", whether now or hereafter
             ------                                                        
existing, as defined in Section 424(e) of the Code.

        (u) "Plan" means this 1993 Stock Option Plan.
             ----                                    

        (v) "Share" means a share of the Common Stock, as adjusted in accordance
             -----                                                              
with Section 11 of the Plan.

        (w) "Subsidiary" means a "subsidiary corporation", whether now or
             ----------                                                  
hereafter existing, as defined in Section 424(f) of the Code.

    3.  Stock Subject to the Plan.  Subject to the provisions of Section 11 of
        -------------------------                                             
the Plan, the maximum aggregate number of Shares which may be optioned and sold
under the Plan is 4,291,396 Shares (after giving effect to the one-for-two stock
split approved by the shareholders of the Company on November 24, 1997;
hereinafter, "post-split").  The Shares may be authorized, but unissued, or
reacquired Common Stock.

        If an Option should expire or become unexercisable for any reason
without having been exercised in full, or is surrendered pursuant to an Option
Exchange Program, the unpurchased Shares which were subject thereto shall,
unless the Plan has terminated, become available for future grant or sale under
the Plan.

    4.  Administration of the Plan.
        -------------------------- 

        (a) Procedure.
            --------- 

            (i)    Multiple Administrative Bodies. The Plan may be administered
                   ------------------------------
by different Committees with respect to different groups of Employees and
Consultants.

            (ii)   Section 162(m). To the extent that the Administrator
                   --------------
determines it to be desirable to qualify Options granted hereunder as
"performance-based compensation" within the meaning of Section 162(m) of the
Code, the Plan shall be administered by a Committee of two or more "outside
directors" within the meaning of Section 162(m) of the Code.

            (iii)  Rule 16b-3.  To the extent desirable to qualify transactions
                   ----------                                                  
hereunder as exempt under Rule 16b-3, the transactions contemplated hereunder
shall be structured to satisfy the requirements for exemption under Rule 16b-3.

            (iv)   Other Administration.  Other than as provided above, the Plan
                   --------------------                                         
shall be administered by (A) the Board or (B) a Committee, which committee shall
be constituted to satisfy Applicable Laws.

                                      -3-
<PAGE>
 
        (b) Powers of the Administrator.  Subject to the provisions of the Plan,
            ---------------------------                                         
and in the case of a Committee, subject to the specific duties delegated by the
Board to such Committee, the Administrator shall have the authority, in its
discretion:

            (i)    to determine the Fair Market Value of the Common Stock, in
accordance with Section 2(l) of the Plan;

            (ii)   to select the Consultants and Employees to whom Options may
from time to time be granted hereunder;

            (iii)  to determine whether and to what extent Options are granted
hereunder;

            (iv)   to approve forms of agreement for use under the Plan;

            (v)    to determine the terms and conditions, not inconsistent with
the terms of the Plan, of any Option granted hereunder. Such terms and
conditions include, but are not limited to, the exercise price, the time or
times when Options may be exercised (which may be based on performance
criteria), any vesting acceleration or waiver of forfeiture restrictions, and
any restriction or limitation regarding any Option of the shares of Common Stock
relating thereto, based in each case on such factors as the Administrator, in
its sole discretion, shall determine;

            (vi)   to determine whether and under what circumstances an Option
may be settled in cash under subsection 9(f) instead of Common Stock;

            (vii)  to reduce the exercise price of any Option to the then
current Fair Market Value if the Fair Market Value of the Common Stock covered
by such Option shall have declined since the date the Option was granted;

            (viii) to institute an Option Exchange Program;

            (ix)   to construe and interpret the terms of the Plan and awards
granted pursuant to the Plan;

            (x)    to prescribe, amend and rescind rules and regulations
relating to the Plan, including rules and regulations relating to sub-plans
established for the purpose of qualifying for preferred tax treatment under
foreign tax laws;

            (xi)   to modify or amend each Option (subject to Section 13 of the
Plan), including the discretionary authority to extend the post-termination
exercisability period of Options longer than is otherwise provided for in the
Plan;

            (xii)  to allow Optionees to satisfy withholding tax obligations by
electing to have the Company withhold from the Shares to be issued upon exercise
of an Option that number of Shares 

                                      -4-
<PAGE>
 
having a Fair Market Value equal to the amount required to be withheld. The Fair
Market Value of the Shares to be withheld shall be determined on the date that
the amount of tax to be withheld is to be determined. All elections by an
Optionee to have Shares withheld for this purpose shall be made in such form and
under such conditions as the Administrator may deem necessary or advisable;

            (xiii) to make all other determinations deemed necessary or
advisable for administering the Plan.

        (c) Effect of Administrator's Decision.   All decisions, determinations
            ----------------------------------                                 
and interpretations of the Administrator shall be final and binding on all
Optionees and any other holders of any Options.

    5.  Eligibility.
        ----------- 

        (a) Nonstatutory Stock Options may be granted to Employees and
Consultants.  Incentive Stock Options may be granted only to Employees.  An
Employee or Consultant who has been granted an Option may, if otherwise
eligible, be granted additional Options.

        (b) Each Option shall be designated in the written option agreement as
either an Incentive Stock Option or a Nonstatutory Stock Option.  However,
notwithstanding such designations, to the extent that the aggregate Fair Market
Value of the Shares with respect to which Incentive Stock Options are
exercisable for the first time by any Optionee during any calendar year (under
all plans of the Company or any Parent or Subsidiary) exceeds $100,000, such
Options shall be treated as Nonstatutory Stock Options.  For purposes of this
Section 5(a), Incentive Stock Options shall be taken into account in the order
in which they were granted.  The Fair Market Value of the Shares shall be
determined as of the time the Option with respect to such Shares is granted.

        (c) Neither the Plan nor any Option shall confer upon an Optionee any
right with respect to continuing the Optionee's employment or consulting
relationship with the Company, nor shall they interfere in any way with the
Optionee's right or the Company's right to terminate such employment or
consulting relationship at any time, with or without cause.

        (d) Upon the Company or a successor corporation issuing any class of
common equity securities required to be registered under Section 12 of the
Exchange Act, or upon the Plan being assumed by a corporation having a class of
common equity securities required to be registered under Section 12 of the
Exchange Act, the following limitations shall apply to grants of Options to
Employees:

            (i)   No Employee shall be granted, in any fiscal year of the
Company, Options to purchase more than 250,000 Shares (post-split).

            (ii)  In connection with his or her initial employment, an Employee
may be granted Options to purchase up to an additional 750,000 Shares (post-
split) which shall not count against the limit set forth in subsection (i)
above.

                                      -5-
<PAGE>
 
            (iii) The foregoing limitations shall be adjusted proportionately in
connection with any change in the Company's capitalization as described in
Section 11.

            (iv)  If an Option is canceled in the same fiscal year of the
Company in which it was granted (other than in connection with a transaction
described in Section 11), the canceled Option will be counted against the limits
set forth in subsections (i) and (ii) above. For this purpose, if the exercise
price of an Option is reduced, the transaction will be treated as a cancellation
of the Option and the grant of a new Option.

    6.  Term of Plan.  The Plan shall become effective upon the earlier to occur
        ------------                                                            
of its adoption by the Board of Directors or its approval by the shareholders of
the Company as described in Section 18 of the Plan.  It shall continue in effect
for a term of ten (10) years unless sooner terminated under Section 13 of the
Plan.

    7.  Term of Option.  The term of each Option shall be the term stated in the
        --------------                                                          
Option Agreement; provided, however, that the term shall be no more than ten
(10) years from the date of grant thereof. However, in the case of an Incentive
Stock Option granted to an Optionee who, at the time the Option is granted, owns
stock representing more than ten percent (10%) of the voting power of all
classes of stock of the Company or any Parent or Subsidiary, the term of the
Option shall be five (5) years from the date of grant thereof or such shorter
term as may be provided in the Option Agreement.

    8.  Option Exercise Price and Consideration.
        --------------------------------------- 

        (a) Exercise Price.  The per share exercise price for the Shares to be
            --------------                                                    
issued pursuant to exercise of an Option shall be such price as is determined by
the Administrator, but shall be subject to the following:

            (i)  In the case of an Incentive Stock Option

                 (A) granted to an Employee who, at the time of the grant of
such Incentive Stock Option, owns stock representing more than ten percent (10%)
of the voting power of all classes of stock of the Company or any Parent or
Subsidiary, the per Share exercise price shall be no less than 110% of the Fair
Market Value per Share on the date of grant.

                 (B) granted to any Employee other than an Employee described in
paragraph (A) immediately above, the per Share exercise price shall be no less
than 100% of the Fair Market Value per Share on the date of grant.

            (ii) In the case of a Nonstatutory Stock Option, the per Share
exercise price shall be determined by the Administrator.  In the case of a
Nonstatutory Stock Option intended to qualify as "performance-based
compensation" within the meaning of Section 162(m) of the Code, the per Share
exercise price shall be no less than 100% of the Fair Market Value per Share on
the date of grant.

                                      -6-
<PAGE>
 
        (b) Waiting Period and Exercise Dates.  At the time an Option is
            ---------------------------------                           
granted, the Administrator shall fix the period within which the Option may be
exercised and shall determine any conditions which must be satisfied before the
Option may be exercised.  In so doing, the Administrator may specify that an
Option may not be exercised until the completion of a service period.

        (c) Form of Consideration.  The consideration to be paid for the Shares
            ---------------------                                              
to be issued upon exercise of an Option, including the method of payment, shall
be determined by the Administrator (and, in the case of an Incentive Stock
Option, shall be determined at the time of grant) and may consist entirely of
(1) cash, (2) check, (3) promissory note, (4) other Shares which (x) in the case
of Shares acquired upon exercise of an Option either have been owned by the
Optionee for more than six months on the date of surrender or were not acquired,
directly or indirectly, from the Company, and (y) have a Fair Market Value on
the date of surrender equal to the aggregate exercise price of the Shares as to
which said Option shall be exercised, (5) delivery of a properly executed
exercise notice together with such other documentation as the Administrator and
the broker, if applicable, shall require to effect an exercise of the Option and
delivery to the Company of the sale or loan proceeds required to pay the
exercise price, (6) a reduction in the amount of any Company liability to the
Optionee, including any liability attributable to the Optionee's participation
in any Company-sponsored deferred compensation program or arrangement, (7) any
combination of the foregoing methods of payment, or (8) such other consideration
and method of payment for the issuance of Shares to the extent permitted by
Applicable Laws.  In making its determination as to the type of consideration to
accept, the Administrator shall consider if acceptance of such consideration may
be reasonably expected to benefit the Company.

    9.  Exercise of Option.
        ------------------ 

        (a) Procedure for Exercise; Rights as a Shareholder. Any Option granted
            -----------------------------------------------                    
hereunder shall be exercisable according to the terms of the Plan and at such
times and under such conditions as determined by the Administrator and set forth
in the Option Agreement.

            An Option may not be exercised for a fraction of a Share.

            An Option shall be deemed to be exercised when written notice of
such exercise has been given to the Company in accordance with the terms of the
Option by the person entitled to exercise the Option and full payment for the
Shares with respect to which the Option is exercised has been received by the
Company. Full payment may, as authorized by the Board, consist of any
consideration and method of payment allowable under Section 8(b) of the Plan.
Until the issuance (as evidenced by the appropriate entry on the books of the
Company or of a duly authorized transfer agent of the Company) of the stock
certificate evidencing such Shares, no right to vote or receive dividends or any
other rights as a shareholder shall exist with respect to the Optioned Stock,
notwithstanding the exercise of the Option. The Company shall issue (or cause to
be issued) such stock certificate promptly upon exercise of the Option. No
adjustment will be made for a dividend or other right for which the record date
is prior to the date the stock certificate is issued, except as provided in
Section 11 of the Plan.

                                      -7-
<PAGE>
 
            Exercising an Option in any manner shall decrease the number of
Shares thereafter available, both for purposes of the Plan and for sale under
the Option, by the number of Shares as to which the Option is exercised.

        (b) Termination of Employment or Consulting Relationship.  In the event
            ----------------------------------------------------               
of termination of an Optionee's Continuous Status as an Employee or Consultant
with the Company (but not in the event of a change of status from Employee to
Consultant (in which case an Employee's Incentive Stock Option shall
automatically convert to a Nonstatutory Stock Option on the ninety-first (91st)
day following such change of status) or from Consultant to Employee), such
Optionee may, but only within such period of time as is determined by the
Administrator, of at least thirty (30) days, with such determination in the case
of an Incentive Stock Option not exceeding three (3) months after the date of
such termination (but in no event later than the expiration date of the term of
such Option as set forth in the Option Agreement), exercise his or her Option to
the extent that Optionee was entitled to exercise it at the date of such
termination.  To the extent that Optionee was not entitled to exercise the
Option at the date of such termination, the Shares covered by the unexercisable
portion of the Option shall revert to the Plan, or if Optionee does not exercise
such Option to the extent so entitled within the time specified herein, the
Option shall terminate and the Shares covered by such Option shall revert to the
Plan.

        (c) Disability of Optionee.  Notwithstanding the provisions of Section
            ----------------------                                            
9(b) above, in the event of termination of an Optionee's Continuous Status as an
Employee or Consultant as a result of his total and permanent disability (as
defined in Section 22(e)(3) of the Code), Optionee may, but only within six (6)
months from the date of such termination (but in no event later than the
expiration date of the term of such Option as set forth in the Option
Agreement), exercise the Option to the extent otherwise entitled to exercise it
as of six (6) months after the date of such termination.  To the extent that
Optionee was not entitled to exercise the Option as of six (6) months after the
date of such termination, the Shares covered by the unexercisable portion of the
Option shall revert to the Plan, or if Optionee does not exercise such Option to
the extent so entitled within the time specified herein, the Option shall
terminate and the Shares covered by such Option shall revert to the Plan.

        (d) Death of Optionee.  In the event of termination of an Optionee's
            -----------------                                               
Continuous Status as an Employee or Consultant as a result of the death of an
Optionee (i) during the term of the Option and while an Employee of the Company
having been in Continuous Status as an Employee since the date of grant of the
Option, or (ii) within three (3) months after the termination of Optionee's
Continuous Status as an Employee for any reason other than for cause or a
voluntary termination initiated by the Optionee, the Option may be exercised, at
any time within six (6) months following the date of death (but in no event
later than the expiration date of the term of such Option as set forth in the
Option Agreement), by the Optionee's estate or by a person who acquired the
right to exercise the Option by bequest or inheritance, but only to the extent
the Optionee would have been entitled to exercise the Option as of six (6)
months after the date of death.  To the extent that Optionee was not entitled to
exercise the Option as of six (6) months after the date of death, the Shares
covered by the unexercisable portion of the Option shall revert to the Plan, or
if Optionee does not exercise such Option to the extent

                                      -8-
<PAGE>
 
so entitled within the time specified herein, the Option shall terminate and
the Shares covered by such Option shall revert to the Plan.

        (e) Buyout Provisions.  The Administrator may at any time offer to buy
            -----------------                                                 
out for a payment in cash or Shares, an Option previously granted, based on such
terms and conditions as the Administrator shall establish and communicate to the
Optionee at the time that such offer is made.

    10. Non-Transferability of Options.  Unless determined otherwise by the
        ------------------------------                                     
Administrator, an Option may not be sold, pledged, assigned, hypothecated,
transferred, or disposed of in any manner other than by will or by the laws of
descent or distribution and may be exercised, during the lifetime of the
Optionee, only by the Optionee.  If the Administrator makes an Option
transferable, such Option shall contain such additional terms and conditions as
the Administrator deems appropriate.

    11. Adjustments Upon Changes in Capitalization, Dissolution, Merger or Asset
        ------------------------------------------------------------------------
    Sale.
    ---- 

        (a) Changes in Capitalization.  Subject to any required action by the
            -------------------------                                        
shareholders of the Company, the number of shares of Common Stock covered by
each outstanding Option, and the number of shares of Common Stock which have
been authorized for issuance under the Plan but as to which no Options have yet
been granted or which have been returned to the Plan upon cancellation or
expiration of an Option, as well as the price per share of Common Stock covered
by each such outstanding Option, shall be proportionately adjusted for any
increase or decrease in the number of issued shares of Common Stock resulting
from a stock split, reverse stock split, stock dividend, combination or
reclassification of the Common Stock, or any other increase or decrease in the
number of issued 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 issuance 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 an Option.

        (b) Dissolution or Liquidation.  In the event of the proposed
            --------------------------                               
dissolution or liquidation of the Company, the Board shall notify the Optionee
at least fifteen (15) days prior to such proposed action. To the extent it has
not been previously exercised, the Option will terminate immediately prior to
the consummation of such proposed action, unless otherwise provided by the
Board.  The Board may, in the exercise of its sole discretion in such instances,
declare that any Option shall terminate as of a date fixed by the Board and give
each Optionee the right to exercise his Option as to all or any part of the
Optioned Stock, including shares as to which the Option would not otherwise be
exercisable.

        (c) Merger. In the event of a merger of the Company with or into another
            -------                                                             
corporation, the Option shall be assumed or an equivalent option shall be
substituted by such successor corporation or a parent or subsidiary of such
successor corporation.  In the event that the successor corporation does not
agree to assume the Option or to substitute an equivalent option, the
Administrator shall, in lieu of 

                                      -9-
<PAGE>
 
such assumption or substitution, provide for the Optionee to have the right to
exercise the Option as to all or a portion of the Optioned Stock, including
Shares as to which it would not otherwise be exercisable. If the Administrator
makes an Option fully exercisable in lieu of assumption or substitution in the
event of a merger, the Administrator shall notify the Optionee that the Option
shall be fully exercisable for a period of fifteen (15) days from the date of
such notice, and the Option will terminate upon the expiration of such period.
For the purposes of this paragraph, the Option shall be considered assumed if,
following the merger, the option confers the right to purchase, for each Share
of Optioned Stock subject to the Option immediately prior to the merger, the
consideration (whether stock, cash, or other securities or property) received in
the merger by holders of Common Stock for each Share held on the effective date
of the transaction (and if holders were offered a choice of consideration, the
type of consideration chosen by the holders of a majority of the outstanding
Shares); provided, however, that if such consideration received in the merger
was not solely common stock of the successor corporation or its Parent, the
Administrator may, with the consent of the successor corporation, provide for
the consideration to be received upon the exercise of the Option, for each Share
of Optioned Stock subject to the Option, to be solely common stock of the
successor corporation or its Parent equal in fair market value to the per share
consideration received by holders of Common Stock in the merger.

    12. Date of Grant.  The date of grant of an Option shall, for all purposes,
        -------------                                                          
be the date on which the Administrator makes the determination granting such
Option, or such other date as is determined by the Administrator.  Notice of the
determination shall be given to each Employee or Consultant to whom an Option is
so granted within a reasonable time after the date of such grant.

    13. Amendment and Termination of the Plan.
        ------------------------------------- 

        (a) Amendment and Termination.  The Board may at any time amend, alter,
            -------------------------                                          
suspend or discontinue the Plan, but no amendment, alteration, suspension or
discontinuation shall be made which would impair the rights of any Optionee
under any grant theretofore made, without his or her consent. In addition, to
the extent necessary and desirable to comply with Rule 16b-3 under the Exchange
Act or with Section 422 of the Code (or any other applicable law or regulation,
including the requirements of the NASD or an established stock exchange), the
Company shall obtain shareholder approval of any Plan amendment in such a manner
and to such a degree as required.

        (b) Effect of Amendment or Termination.  Any such amendment or
            ----------------------------------                        
termination of the Plan shall not affect Options already granted and such
Options shall remain in full force and effect as if this Plan had not been
amended or terminated, unless mutually agreed otherwise between the Optionee and
the Board, which agreement must be in writing and signed by the Optionee and the
Company.

    14. Conditions Upon Issuance of Shares.
        ---------------------------------- 

        (a) Legal Compliance.  Shares shall not be issued pursuant to the
            ----------------                                             
exercise of an Option unless the exercise of such Option and the issuance and
delivery of such Shares shall comply with Applicable Laws and shall be further
subject to the approval of counsel for the Company with respect to such
compliance.

                                      -10-
<PAGE>
 
        (b) Investment Representations.  As a condition to the exercise of an
            --------------------------                                       
Option, the Company may require the person exercising such Option to represent
and warrant at the time of any 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 relevant provisions of law.


    15. Reservation of Shares.  The Company, during the term of this Plan, will
        ---------------------                                                  
at all times reserve and keep available such number of Shares as shall be
sufficient to satisfy the requirements of the Plan.

    16. Agreements.  Options shall be evidenced by written agreements in such
        ----------                                                           
form as the Board shall approve from time to time.

    17. Inability to Obtain Authority.  The inability of the Company to obtain
        -----------------------------                                         
authority from any regulatory body having jurisdiction, which authority is
deemed by the Company's counsel to be necessary to the lawful issuance and sale
of any Shares hereunder, shall relieve the Company of any liability in respect
of the failure to issue or sell such Shares as to which such requisite authority
shall not have been obtained.

    18. Shareholder Approval.  Continuance of the Plan shall be subject to
        --------------------                                              
approval by the shareholders of the Company within twelve (12) months before or
after the date the Plan is adopted. Such shareholder approval shall be obtained
in the degree and manner required under applicable state and federal law and the
rules of any stock exchange upon which the Common Stock is listed.

                                      -11-
<PAGE>
 
                                                                    EXHIBIT 10.2

                           ARTISAN COMPONENTS, INC.

                        INCENTIVE STOCK OPTION AGREEMENT



     Artisan Components, Inc., a California corporation (the "Company"), has
granted to __ (the "Optionee"), an option to purchase a total of __ shares of
Common Stock (the "Shares"), at the price determined as provided herein, and in
all respects subject to the terms, definitions and provisions of the 1993 Stock
Option Plan (the "Plan") adopted by the Company which is incorporated herein by
reference.  The terms defined in the Plan shall have the same defined meanings
herein.

     1.   Nature of the Option.  This Option is intended to qualify as an
          --------------------                                           
Incentive Stock Option as defined in Section 422A of the Code.

     2.   Exercise Price.  The exercise price is $.01 for each share of Common
          --------------                                                      
Stock, which price is the fair market value per share of the Company's Common
Stock as of the date of grant as determined in good faith by the Board of
Directors of the Company.

     3.   Exercise of Option.  This Option shall be exercisable during its term
          ------------------                                                   
in accordance with the provisions of Section 8 of the Plan as follows:

          (i)  Right to Exercise.
               ----------------- 

               (a) Subject to Sections 3(i)(b) and (c) below, the Shares subject
to this Option shall become exercisable to the extent of 6.25% of the Shares
subject to the option for each quarter of Optionee's Continuous Status as an
Employee which has expired after __ (the "Vesting Commencement Date"); provided,
however, that this Option shall not be exercisable prior to one (1) year after
the Vesting Commencement Date.

               (b) This Option may not be exercised for a fraction of a share.

               (c) In the event of Optionee's death, disability or other
termination of employment, the exercisability of the Option is governed by
Sections 7, 8 and 9 below, subject to the limitation contained in Section
3(i)(d).

               (d) In no event may this Option be exercised after the date of
expiration of the term of this Option as set forth in Section 14.

          (ii) Method of Exercise.  This Option shall be exercisable by written
               ------------------                                              
notice in the form attached hereto as Exhibit 1, which shall state the election
to exercise the Option, the number of Shares in respect of which the Option is
being exercised, and such other representations and agreements as to the
holder's investment intent 
<PAGE>
 
with respect to such shares of Common Stock as may be required by the Company
pursuant to the provisions of the Plan. Such written notice shall be signed by
the Optionee and shall be delivered in person to or received through certified
mail by the Secretary of the Company within the applicable time period set forth
herein. The written notice shall be accompanied by payment of the exercise
price.

     No Shares will be issued pursuant to the exercise of an Option unless such
issuance and such exercise shall comply with all relevant provisions of law and
the requirements of any stock exchange upon which the Shares may then be listed.
Assuming such compliance, for income tax purposes the Shares shall be considered
transferred to the Optionee on the date on which the Option is exercised with
respect to such Shares.

     4.   Optionee's Representations.  In the event the Shares purchasable
          --------------------------                                      
pursuant to the exercise of this Option have not been registered under the
Securities Act of 1933, as amended, at the time this Option is exercised,
Optionee shall, concurrently with the exercise of all or any portion of this
Option, deliver to the Company his Investment Representation Statement in the
form attached hereto as Exhibit 2.

     5.   Method of Payment.  Payment of the exercise price shall be by any of
          -----------------                                                   
the following, or a combination thereof, at the election of the Optionee:

          (i)  cash;

         (ii)  check; or

        (iii)  surrender of other Shares of Common Stock of the Company which
(A) either have been owned by the Optionee for more than six (6) months on the
date of surrender or were not acquired, directly or indirectly, from the Company
and (B) have a fair market value on the date of surrender equal to the exercise
price of the Shares as to which the Option is being exercised.

     6.   Restrictions on Exercise.  This Option may not be exercised until such
          ------------------------                                              
time as the Plan has been approved by the shareholders of the Company, if the
issuance of such Shares upon such exercise or the method of payment of
consideration for such shares would constitute a violation of any applicable
federal or state securities or other law or regulation, including any rule under
Part 207 of Title 12 of the Code of Federal Regulations ("Regulation G") as
promulgated by the Federal Reserve Board.  As a condition to the exercise of
this Option, the Company may require Optionee to make any representation and
warranty to the Company as may be required by any applicable law or regulation.

                                       2
<PAGE>
 
     7.   Termination of Status as an Employee.  If Optionee ceases to serve as
          ------------------------------------                                 
an Employee, he may, but only within three (3) months after the date he ceases
to be an Employee of the Company, exercise this Option to the extent that he was
entitled to exercise it at the date of such termination; provided, however, that
if such exercise of the Option would result in liability for the Employee or
Consultant under Section 16(b) of the Exchange Act, then such three (3) month
period shall be extended until the tenth (10th) day following the last date upon
which the Employee or Consultant has any liability under Section 16(b).  To the
extent that he was not entitled to exercise this Option at the date of such
termination, or if he does not exercise this Option within the time specified
herein, the Option shall terminate.

     8.   Disability of Optionee.  Notwithstanding the provisions of Section 7
          ----------------------                                              
above, if Optionee is unable to continue his employment with the Company as a
result of his total and permanent disability (as defined in Section 22(e)(3) of
the Internal Revenue Code), he may, but only within six (6) months from the date
of termination of employment, exercise his Option to the extent he was entitled
to exercise it as of six (6) months after the date of such termination.  To the
extent that he was not entitled to exercise the Option as of six (6) months
after the date of termination, or if he does not exercise such Option (which he
was entitled to exercise) within the time specified herein, the Option shall
terminate.

     9.   Death of Optionee.  In the event of the death of Optionee:
          -----------------                                         

          (i)  during the term of this Option and while an Employee of the
Company and having been in Continuous Status as an Employee since the date of
grant of the Option, the Option may be exercised, at any time within six (6)
months following the date of death, by Optionee's estate or by a person who
acquired the right to exercise the Option by bequest or inheritance, but only to
the extent that he would have been entitled to exercise it as of six (6) months
after the date of death; or

          (ii) within three (3) months after the termination of Optionee's
Continuous Status as an Employee for any reason other than for cause or a
voluntary termination initiated by the Optionee, the Option may be exercised, at
any time within six (6) months following the date of death, by Optionee's estate
or by a person who acquired the right to exercise the Option by bequest or
inheritance, but only to the extent that he would have been entitled to exercise
it as of six (6) months after the date of termination.

     10.  Right of First Refusal.  Before any Shares held by Optionee or any
          ----------------------                                            
transferee, in the event that Optionee has received the prior written consent of
the Company to transfer any Shares (either being sometimes referred to herein as
the "Holder"), may be sold or other wise transferred (excluding transfers by
bona fide gift or by opera-

                                       3
<PAGE>
 
tion of law), the Company or its assignee(s) shall have a right of first refusal
to purchase the Shares on the terms and conditions set forth in this Section
(the "Right of First Refusal").

          (i)    Notice of Proposed Transfer.  The Holder of the Shares shall
                 ---------------------------                                 
deliver to the Company a written notice (the "Notice") stating: (i) the Holder's
bona fide intention to sell or otherwise transfer such Shares; (ii) the name of
each proposed purchaser or other transferee ("Proposed Transferee"); (iii) the
number of Shares to be transferred to each Proposed Transferee; and (iv) the
bona fide cash price or other consideration for which the Holder proposes to
transfer the Shares (the "Offered Price"), and the Holder shall offer all of the
Shares proposed to be transferred to all Proposed Transferees at the Offered
Price to the Company or its assignee(s).

          (ii)   Exercise of Right of First Refusal.  At any time within thirty
                 ----------------------------------                            
(30) days after receipt of the Notice, the Company and/or its assignee(s) may,
by giving written notice to the Holder, elect to purchase all, but not less than
all (unless the Holder consents), of the Shares proposed to be transferred in
the aggregate to the Proposed Transferees, at the purchase price determined in
accordance with subsection (iii) below.

          (iii)  Purchase Price.  The purchase price ("Purchase Price") for the
                 --------------                                                
Shares purchased by the Company or its assignee(s) under this Section shall be
the Offered Price.  If the Offered Price includes consideration other than cash,
the cash equivalent value of the non-cash consideration shall be determined by
an appraiser mutually agreeable to both the Company and the Holder, with the
cost thereof split between the Company and the Holder.

          (iv)   Payment.  Payment of the Purchase Price shall be made, at the
                 -------                                                      
option of the Company or its assignee(s), in cash (by check), by cancellation of
all or a portion of any outstanding indebtedness of the Holder to the Company
(or, in the case of repurchase by an assignee, to the assignee), or by any
combination thereof within 90 days after receipt of the Notice or in the manner
and at the times set forth in the Notice.

          (v)    Holder's Right to Transfer. If all of the Shares proposed in
                 --------------------------
the Notice to be transferred to all of the Proposed Transferees are not
purchased by the Company and/or its assignee(s) as provided in this Section,
then the Holder may sell or otherwise transfer such Shares to such Proposed
Transferees at the Offered Price or at a higher price, provided that (i) such
sale or other transfer is consummated within 120 days after the date of the
Notice and (ii) any such sale or other transfer is effected in accordance with
any applicable securities laws and the Proposed Transferees agree in writing
that the provisions of this Section shall continue to apply to the Shares in the
hands of such Proposed Transferees. If all of the Shares described in the Notice
are not transferred to the Proposed

                                       4
<PAGE>
 
Transferees within such period, a new Notice shall be given to the Company, and
the Company and/or its assignees shall again be offered the Right of First
Refusal before any Shares held by the Holder may be sold or otherwise
transferred.

     11.  Restrictive Legends and Stop-Transfer Orders.
          -------------------------------------------- 

          (i)  Legends.  Optionee understands and agrees that the Company shall
               -------                                                         
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 state or federal securities laws:

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

     THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN
     RESTRICTIONS ON TRANSFER AND RIGHT OF FIRST REFUSAL OPTIONS HELD BY
     THE ISSUER OR ITS ASSIGNEE(S) AS SET FORTH IN AN AGREEMENT WITH THE
     COMPANY, A COPY OF WHICH MAY BE OBTAINED AT THE PRINCIPAL OFFICE OF
     THE ISSUER. SUCH TRANSFER RESTRICTIONS AND RIGHT OF FIRST REFUSAL ARE
     BINDING ON TRANSFEREES OF THESE SHARES.

     THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO RESTRICTIONS
     ON TRANSFER FOR A PERIOD OF 180 DAYS FOLLOWING THE EFFECTIVE DATE OF
     REGISTRATION UNDER THE SECURITIES ACT FOR 1933, AS AMENDED, AS SET
     FORTH IN AN 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 RESTRICTIONS ARE BINDING ON TRANSFEREES OF THESE
     SHARES.

          (ii)  Stop-Transfer Notices.  Optionee 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.

          (iii) Refusal to Transfer.  The Company shall 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 shall have been so
transferred.

                                     -5-
<PAGE>
 
     12.  Market Standoff Agreement.  Optionee hereby agrees that if so
          -------------------------                                    
requested by the Company or any representative of the underwriters in connection
with any registration of the offering of any securities of the Company under the
Act, Optionee shall not sell or otherwise transfer any Shares or other
securities of the Company during the 180-day period following the effective date
of a registration statement of the Company filed under the Act; provided,
however, that such restriction shall only apply to the first two registration
statements of the Company to become effective under the Act which include
securities to be sold on behalf of the Company to the public in an underwritten
public offering under the Act.  The Company may impose stop-transfer
instructions with respect to securities subject to the foregoing restrictions
until the end of such 180-day period.

     13.  Non-Transferability of Option.  This Option may not be transferred in
          -----------------------------                                        
any manner otherwise than by will or by the laws of descent or distribution and
may be exercised during the lifetime of Optionee only by Optionee.  The terms of
this Option shall be binding upon the executors, administrators, heirs,
successors and assigns of the Optionee.

     14.  Term of Option.  This Option may not be exercised more than ten years
          --------------                                                       
from the date of grant of this Option, and may be exercised during such term
only in accordance with the Plan and the terms of this Option.

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

          (i)  Exercise of Option.  There will be no regular federal income tax
               ------------------                                              
liability or California income tax liability upon the exercise of the Option,
although the excess, if any, of the fair market value of the Shares on the date
of exercise over the Exercise Price will be treated as an adjustment to the
alternative minimum tax for federal tax purposes and may subject the Optionee to
the alternative minimum tax in the year of exercise.

          (ii) Disposition of Shares.  If Shares transferred pursuant to the
               ---------------------                                        
Option are held for at least one year after exercise and are disposed of at
least two years after the Date of Grant, any gain realized on disposition of the
Shares will also be treated as long-term capital gain for federal and California
income tax purposes.  If Shares purchased under an ISO are disposed of within
such one-year period or within two years after the Date of Grant, any gain
realized on such disposition will be treated as compensation income (taxable at
ordinary income rates) to the extent of the excess, if any, of the 

                                     -6-
<PAGE>
 
fair market value of the Shares on the date of exercise over the Exercise 
Price.

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

DATE OF GRANT: _____________, 199_


                              ARTISAN COMPONENTS, INC.
                              a California corporation


                              By:____________________________



     OPTIONEE ACKNOWLEDGES AND AGREES THAT THE VESTING OF SHARES PURSUANT TO
THIS OPTION IS EARNED ONLY BY CONTINUING CONSULTANCY OR EMPLOYMENT AT THE WILL
OF THE COMPANY (NOT THROUGH THE ACT OF BEING HIRED, BEING GRANTED THIS OPTION OR
ACQUIRING SHARES HEREUNDER). OPTIONEE FURTHER ACKNOWLEDGES AND AGREES THAT
NOTHING IN THIS AGREEMENT, NOR IN THE COMPANY'S STOCK OPTION PLAN WHICH IS
INCORPORATED HEREIN BY REFERENCE, SHALL CONFER UPON OPTIONEE ANY RIGHT WITH
RESPECT TO CONTINUATION OF EMPLOYMENT OR CONSULTANCY BY THE COMPANY, NOR SHALL
IT INTERFERE IN ANY WAY WITH HIS RIGHT OR THE COMPANY'S RIGHT TO TERMINATE HIS
EMPLOYMENT OR CONSULTANCY AT ANY TIME, WITH OR WITHOUT CAUSE.

                                     -7-
<PAGE>
 
     Optionee acknowledges receipt of a copy of the Plan and certain information
related thereto and represents that he is familiar with the terms and provisions
thereof, and hereby accepts this Option subject to all of the terms and
provisions thereof.  Optionee has reviewed the Plan and this Option in their
entirety, has had an opportunity to obtain the advice of counsel prior to
executing this Option and fully understands all provisions of the Option.
Optionee hereby agrees to accept as binding, conclusive and final all decisions
or interpretations of the Board upon any questions arising under the Plan.

     Dated:___________________


                              ________________________________
                              Optionee

                                     -8-
<PAGE>
 
                                 CONSENT
                                 -------



     The undersigned spouse of Optionee agrees that the spouse's interest in the
Shares subject to this Agreement shall be irrevocably bound by this Agreement
and further understands and agrees that any community property interest, if any,
shall be similarly bound by this Agreement.



                              ______________________________
                              Spouse of Optionee

<PAGE>
 
                                EXHIBIT 1
                                ---------



To:  Artisan Components, Inc.
     2077 Gateway Place
     Suite 300
     San Jose, CA  95110

     Attn:  President

Subject:  Notice of Intention to Exercise Stock Option
          --------------------------------------------

     In respect to the stock option granted to _____________ on __________,
199_ to purchase an aggregate of _________ shares of Artisan Components,
Inc., Common Stock, this is official notice that the undersigned intends to
exercise such option to purchase shares as follows:

     Number of Shares:   ______________________________

     Date of Purchase:   ______________________________

     Mode of Payment:    ______________________________


     In connection with such exercise, the undersigned hereby reaffirms that the
representations and agreements set forth in Exhibit 2 to the Agreement
evidencing such option are now and will be at and as of the time of such
exercise true and in full force and effect with respect to the shares purchased.

     The shares should be issued as follows:

          Name:     _________________________________

          Address:  _________________________________

                    _________________________________

                    _________________________________



          Signed:   ________________________________

          Date:     ________________________________

<PAGE>
 
                                EXHIBIT 2
                                ---------

                   INVESTMENT REPRESENTATION STATEMENT


PURCHASER    :  
 
SELLER       :  ARTISAN COMPONENTS, INC.
 
COMPANY      :  ARTISAN COMPONENTS, INC.
 
SECURITY     :  COMMON STOCK

AMOUNT       :

DATE         :


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

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

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

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

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

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

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

                                     -2-
<PAGE>
 
          (f)  I understand that the certificate evidencing the Securities will
be imprinted with a legend which prohibits the transfer of the Securities
without the consent of the Commissioner of Corporations of California.  I have
read the applicable Commissioner's Rules with respect to such restriction, a
copy of which is attached.

                              Signature of Purchaser:


                              __________________________________

                              Date:________________, 19__

                                     -3-