Exhibit 10.2
 
                       NATIONAL SEMICONDUCTOR CORPORATION
 
                             RESTRICTED STOCK PLAN
                      (AS AMENDED EFFECTIVE JULY 19, 2006)
 
 
 
1. Objective
   ---------
 
     The National Semiconductor Corporation Restricted Stock Plan is designed to
further  the  growth,  development  and  financial  success  of the  Company  by
providing additional incentives to certain Employees by assisting them to become
owners of capital  stock of the  Company and thus to benefit  directly  from its
growth, development and financial success.
 
2. Definitions
   -----------
 
     Whenever used in this Plan, the following  terms shall have the meaning set
forth below unless the context clearly indicates to the contrary.
 
Award:  Restricted  Stock Unit or  Restricted  Stock  awarded  to a  Participant
pursuant to the Plan.
 
Board: The Board of Directors of National Semiconductor Corporation.
 
Committee: The Compensation Committee of the Board.
 
Common Stock: National Semiconductor  Corporation's common stock, par value $.50
per share.
 
Company: National Semiconductor Corporation ("NSC"), a Delaware corporation, and
any  corporation  in which NSC controls  directly or indirectly  more than fifty
percent (50%) of the combined voting power of voting securities.
 
Disability:  Inability  to perform any  services for the Company and eligible to
receive disability benefits under the standards used by the Company's disability
benefit plans or any successor plan thereto.
 
Employee: An individual in the regular employ of the Company at any time.
 
Fair Market  Value:  As of given date,  the Fair Market  Value of a share of the
Common  Stock  shall be the opening  stock price of the Common  Stock on the New
York Stock  Exchange  on such date or if the Common  Stock is not traded on such
day,  then  on the  immediately  preceding  trading  day on the New  York  Stock
Exchange.
 
Officer:  An Employee of the Company who is appointed or elected by the Board to
serve as an officer of National Semiconductor Corporation.
 
Participant: An Employee who has been granted an Award pursuant to the Plan.
 
Plan: This National Semiconductor Corporation Restricted Stock Plan.
 
Restricted Stock: Common Stock issued pursuant to the terms of this Plan that is
subject to certain restrictions and may be subject to the risk of forfeiture.
 
Restricted Stock Unit: An Award issued pursuant to Section 6 of the Plan.
 
Retirement:  Permanent termination of employment with the Company and (a) age is
either  sixty-five (65) or age is at least  fifty-five (55) and years of service
in the  employ  of the  Company  is then (10) or more,  and (b) the  terminating
employee has certified to the Secretary that he or she does not intend to engage
in a full-time vocation.
 
Secretary: The Secretary of National Semiconductor Corporation.
 
Termination  of  Employment:  The time when the  employee-employer  relationship
between the  Participant  and the  Participant's  employer is terminated for any
reason,  with or  without  cause,  including,  but not by way of  limitation,  a
termination  upon  the  sale ,  merger  or other  disposition  of  Participant's
employer; by reduction in force; resignation;  discharge;  death; Disability; or
Retirement,  but  excluding  (i)  terminations  where  there  is a  simultaneous
reemployment  by  the  Company,  or  (ii)  terminations  where  the  Participant
continues  a  relationship  (e.g.,  as a director or as a  consultant)  with the
Company.
 
Vesting Date: Date that the  restrictions  and/or risk of forfeiture of an Award
lapse.
 
3. Shares Subject to the Plan
   --------------------------
 
     A.   The shares of stock which may be issued  pursuant  to Awards  shall be
          shares of Common Stock.  The aggregate number of such shares which may
          be issued pursuant to Awards shall not exceed 4,000,000.
<PAGE>
 
     B.   Any shares issued pursuant to an Award that are reacquired by National
          Semiconductor  Corporation  pursuant to the  restrictions  thereon may
          again be  utilized  under this Plan,  subject  to the  limitations  of
          Section 3A.
 
     C.   In the event that the outstanding shares of Common Stock are hereafter
          changed into or exchanged for a different  number or kind of shares or
          other securities of National Semiconductor Corporation,  or of another
          corporation,  by  reason  of  reorganization,  merger,  consolidation,
          recapitalization,   reclassification,  or  the  number  of  shares  is
          increased or decreased by reason of a stock split-up,  stock dividend,
          combination  of shares or any other increase or decrease in the number
          of  such  shares  of  Common  Stock   effected   without   receipt  of
          consideration  by  National   Semiconductor   Corporation   (provided,
          however,  that  conversion of any  convertible  securities or notes of
          National  Semiconductor  Corporation  shall not be deemed to have been
          "effected without receipt of consideration"), the Committee shall make
          appropriate  adjustments in the number and kind of shares which may be
          issued pursuant to Awards, including adjustments of the limitations in
          Section  3.A on the  maximum  number  and kind of shares  which may be
          issued pursuant to Awards.
 
4. Granting of Awards
   ------------------
 
          A.   Any  Employee  of the  Company  who is not an  Officer  shall  be
               eligible to be granted an Award.  Officers are not eligible to be
               granted Awards under this Plan.
 
          B.   The   Committee   shall  from  time  to  time,  in  its  absolute
               discretion:
 
               (i)  Select from among  Employees  (including  Employees  to whom
                    Awards have  previously  been  granted)  those to be granted
                    Awards;
 
               (ii) Determine  the number of shares of Common Stock to be issued
                    pursuant to any Award to such selected Employees; and
 
               (iii) Determine the purchase  price,  if any, and other terms and
                    conditions  applicable  to the  shares  subject to an Award,
                    consistent with the Plan.
<PAGE>
 
          C.   Shares of Common Stock issued  pursuant to an Award may be either
               previously  authorized but unissued shares or issued shares which
               have been reacquired by National Semiconductor  Corporation.  The
               Committee shall establish the purchase price (if any) and form of
               payment for shares of Common  Stock  subject to an Award.  In all
               cases legal  consideration shall be required for each issuance of
               shares of Common Stock pursuant to an Award.
 
          D.   Upon the selection of an Employee to be issued  Restricted Stock,
               the  Committee   shall  instruct  the  Secretary  to  issue  such
               Restricted Stock and may impose such conditions on issuance as it
               deems appropriate.
 
5.   Terms of Restricted Stock
     -------------------------
 
          A.   Restricted  Stock shall be issued only  pursuant to a  Restricted
               Stock  Agreement  entered  into between the  Participant  and the
               Company,  which may be in  written or  electronic  form and which
               shall contain such terms and  conditions  as the Committee  shall
               determine, consistent with the Plan.
 
          B.   The  consideration  for the issuance of Restricted Stock shall be
               set by the Committee;  provided,  however,  that such price shall
               not be less than the par value of a share of Common  Stock on the
               date of grant,  unless  otherwise  permitted by applicable  state
               law.
 
          C.   Upon  delivery  of the shares of  Restricted  Stock to the escrow
               holder   pursuant  to  Section  5.F,  the   Participant   awarded
               Restricted  Stock shall have all the rights of a stockholder with
               respect to said shares, subject to the restrictions in his or her
               Restricted  Stock  Agreement,  including  the  right  to vote the
               shares and to receive all dividends or other  distributions  paid
               or made with respect to the shares.
 
          D.   Unless  otherwise  approved  by  the  Committee,   no  shares  of
               Restricted Stock issued under this Plan may be sold,  assigned or
               otherwise  transferred  until at least one year has elapsed  from
               the  date  the  Restricted  Stock  was  issued.   All  shares  of
               Restricted  Stock  issued under this Plan  (including  any shares
               received by holders thereof as a result of stock dividends, stock
               splits or any other forms of  recapitalization)  shall be subject
               to such other  restrictions as the Committee shall provide in the
               terms of each individual  Restricted Stock  Agreement;  provided,
               however,  that by a resolution adopted after the Restricted Stock
               is issued,  the Committee may, on such terms and conditions as it
               determines  to  be   appropriate,   remove  any  or  all  of  the
               restrictions  imposed  by  the  terms  of  the  Restricted  Stock
               Agreement.  All restrictions imposed pursuant to this Section 5.D
               shall expire within ten years of the date of issuance. Restricted
               Stock may not be sold or encumbered  until all  restrictions  are
               terminated or expire.
 
          E.   Each  individual  Restricted  Stock  Agreement shall provide that
               Restricted  Stock subject to  restrictions  under the  Restricted
               Stock  Agreement  shall be reacquired  by National  Semiconductor
               Corporation  immediately upon a Termination of Employment for any
               reason; provided, however, that the Committee may provide that no
               such  reacquisition  shall occur in the event of a Termination of
               Employment because of the Restricted  Stockholder's Retirement or
               Disability  or death,  in which  event the  restrictions  imposed
               under the Restricted  Stock Agreement shall  immediately  expire.
               The Committee  shall have the  discretion to determine the effect
               of  all  matters  and  questions   relating  to   Termination  of
               Employment,  including but not by way of limitation, the question
               of whether a Termination of Employment  resulted from a discharge
               for cause,  the question of whether a  Termination  of Employment
               has occurred upon the sale,  merger or other  disposition  of the
               Participant's  employing  company,  and all  questions of whether
               particular   leaves  of   absence   constitute   Termination   of
               Employment.
 
          F.   The  Secretary or such other escrow  holder as the  Committee may
               appoint  shall  retain  physical   custody  of  the  certificates
               representing  Restricted  Stock  until  all of  the  restrictions
               imposed  under  the  Restricted  Stock  Agreement  expire  or are
               removed.  In no event shall any  Participant  awarded  Restricted
               Stock retain physical  custody of any  certificates  representing
               Restricted Stock issued to him or her.
 
          G.   The  Committee  shall  cause a legend or  legends to be placed on
               certificates representing all shares of Restricted Stock that are
               still subject to restrictions  under Restricted Stock Agreements,
               which legend or legends shall make  appropriate  reference to the
               conditions imposed thereby.
 
<PAGE>
 
6. Restricted Stock Units
 
          A.   The Committee is  authorized  to make Awards of Restricted  Stock
               Units  to any  Participant  selected  by the  Committee  in  such
               amounts and subject to such terms and conditions as determined by
               the Committee.  At the time of grant, the Committee shall specify
               the date or  dates on which  the  Restricted  Stock  Units  shall
               become  fully  vested and  nonforfeitable,  and may specify  such
               conditions to vesting as it deems  appropriate.  Unless otherwise
               approved  by  the  Committee,  the  minimum  vesting  period  for
               Restricted  Stock Units shall be one year.  On the Vesting  Date,
               National   Semiconductor   Corporation   shall  transfer  to  the
               Participant one unrestricted,  fully transferable share of Common
               Stock for each Restricted  Stock Unit scheduled to be paid out on
               such date and not previously forfeited.
 
          B.   The  term  of any  Restricted  Stock  Units  shall  be set by the
               Committee  in its  discretion  but shall  not be longer  than ten
               years.
 
          C.   The Committee may  establish the purchase  price,  if any, of any
               Restricted Stock Units; provided,  however, that such price shall
               not be less than the par value of a share of Common  Stock on the
               date of grant,  unless  otherwise  permitted by applicable  state
               law.
 
          D.   An Award of  Restricted  Stock Units shall only be payable  while
               the  Participant  is an  Employee;  provided,  however,  that the
               Committee in its sole and absolute discretion may provide that an
               Award of  Restricted  Stock  Units  may be paid  subsequent  to a
               Termination  of  Employment  as a  result  of  the  Participant's
               Retirement,  death or  Disability.  The Committee  shall have the
               discretion  to determine  the effect of all matters and questions
               relating to Termination  of Employment,  including but not by way
               of   limitation,   the  question  of  whether  a  Termination  of
               Employment  resulted from a discharge for cause,  the question of
               whether a Termination  of Employment  has occurred upon the sale,
               merger or disposition of the Participant's employing company, and
               all questions of whether  particular leaves of absence constitute
               Termination of Employment.
 
          E.   Any Award granted  pursuant to this Section 6 shall be subject to
               such  additional  terms  and  conditions  as  determined  by  the
               Committee and shall be evidenced by a written Award Agreement.
 
7. Provisions Applicable to Awards
   -------------------------------
 
          A.   Upon  the  merger  or  consolidation  of  National  Semiconductor
               Corporation with or into another corporation,  the acquisition by
               another  corporation or person  (excluding  any employee  benefit
               plan of  National  Semiconductor  Corporation  or any  trustee or
               other fiduciary holding securities under an employee benefit plan
               of National  Semiconductor  Corporation) of all or  substantially
               all of National Semiconductor Corporation's assets or 51% or more
               of National  Semiconductor  Corporation's then outstanding voting
               stock,   or  the   liquidation   or   dissolution   of   National
               Semiconductor  Corporation,  the  restrictions  imposed under the
               Restricted   Stock   Agreements   and  Award   Agreements   shall
               immediately expire.
 
          B.   Nothing  in this Plan or in any  Restricted  Stock  Agreement  or
               Award  Agreement  shall confer upon any  Participant any right to
               continue in the employ of  Participant's  employer,  or interfere
               with or restrict in any way the rights of Participant's  employer
               to  terminate or discharge  any  Participant  at any time for any
               reason  whatsoever.  The Participant's  employer shall retain the
               absolute  and  unrestricted  right to  terminate a  Participant's
               employment at any time for any reason.
 
          C.   National  Semiconductor  Corporation's  obligation  to  issue  or
               deliver to the Participant  any  certificate or certificates  for
               unrestricted  shares  of stock or to pay to the  Participant  any
               dividends or make any distributions  with respect to any Award is
               expressly  conditioned upon receipt from the  Participant,  on or
               prior to the date the same is required to be withheld, of:
 
               (i)  Full  payment  (in cash or by check) of any amount that must
                    be  withheld  by the  Participant's  employer  for  federal,
                    state,  local and/or other tax purposes;  or
 
               (ii) Subject to the  Committee's  consent and Section  7.C.(iii),
                    full   payment  by  delivery   to   National   Semiconductor
                    Corporation   of   unrestricted   shares  of  Common   Stock
                    previously  owned  by  the  Participant  duly  endorsed  for
                    transfer  to  National  Semiconductor   Corporation  by  the
                    Participant with an aggregate Fair Market Value (determined,
                    as  applicable,   as  of  the  date  of  the  lapse  of  the
                    restrictions   or  vesting,   or  as  of  the  date  of  the
                    distribution)  equal to the amount  that must be withheld by
                    the Participant's employer for federal,  state, local and/or
                    other tax purposes; or
 
               (iii)With  respect to the  withholding  obligation  for shares of
                    Restricted Stock that become unrestricted shares of stock as
                    of a Vesting  Date or shares of  unrestricted  Common  Stock
                    issued  pursuant  to an Award,  subject  to the  Committee's
                    consent  and to the  timing  requirements  set forth in this
                    Section 7.C.(iii),  full payment by retention by the Company
                    of a portion of such  shares of  unrestricted  Common  Stock
                    with an aggregate  Fair Market Value  (determined  as of the
                    Vesting  Date)  equal to the amount that must be withheld by
                    the Participant's  employer for federal,  state and/or local
                    tax purposes; or
 
               (iv) Subject  to the  Committee's  consent,  any  combination  of
                    payments  provided  for in the  foregoing  subsections  (i),
                    (ii), or (iii).
 
8. Administration
   --------------
 
          A.   The  Committee  shall  have  the  duty  to  conduct  the  general
               administration of the Plan in accordance with its provisions. The
               Committee  shall  have the  power to  interpret  the Plan and all
               other  documents  relating  to Awards and to adopt such rules for
               the administration, interpretation and application of the Plan as
               are  consistent  therewith and to interpret,  amend or revoke any
               such rules.  The  Committee  may  delegate  any of its rights and
               duties under this Plan to the Chief Executive Officer of National
               Semiconductor Corporation.
 
          B.   All actions taken and all interpretations and determinations made
               by the  Committee  in good faith shall be final and binding  upon
               all Participants,  the Company and all other interested  persons.
               No member of the  Committee  shall be  personally  liable for any
               action,  determination or interpretation  made in good faith with
               respect to the Plan or Award.
 
9. Other Provisions
   ----------------
 
          A.   No Award, or interest or right therein or part thereof,  shall be
               liable for the debts, contracts or engagements of the Participant
               or successors in interest or shall be subject to  disposition  by
               transfer,   alienation,    anticipation,   pledge,   encumbrance,
               assignment  or  any  other  means  whether  such  disposition  be
               voluntary  or  involuntary  or by  operation  of law by judgment,
               levy,  attachment,  garnishment  or any other legal or  equitable
               proceedings (including bankruptcy), and any attempted disposition
               thereof  shall  be null  and  void  and of no  effect;  provided,
               however, that nothing in this Section 9.A shall prevent transfers
               by will or by the applicable laws at descent and distribution.
 
          B.   The  Plan  may  be  wholly  or  partially  amended  or  otherwise
               modified,  suspended  or  terminated  at any time or from time to
               time  by  the  Board.  Neither  the  amendment,   suspension  nor
               termination  of  the  Plan  shall,  without  the  consent  of the
               Participant,  alter or impair any rights or obligations under any
               Award  theretofore  issued.  No Award  may be issued  during  any
               period of suspension or after termination of the Plan.
 
          C.   This Plan shall not affect any other  compensation  or  incentive
               plans in effect  for the  Company.  Nothing in this Plan shall be
               construed  to limit the right of the  Company  to  establish  any
               other forms of  incentives or  compensation  for Employees of the
               Company,  to issue  restricted or  unrestricted  stock other than
               under this Plan in connection with any proper corporate  purpose,
               including,  but  not  by  way  of  limitation,  the  issuance  of
               restricted  or   unrestricted   stock  in  connection   with  the
               acquisition  in any form of the business,  stock or assets of any
               corporation, firm or association.