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    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="4" face="Times New Roman" style="font-size:14.0pt;font-weight:bold;">UNITED
    STATES</font></b></p>
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    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">OMB APPROVAL</font></p>
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    <p align="center" style="margin:0in 0in .0001pt 10.0pt;text-align:center;text-indent:-10.0pt;"><font size="4" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
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    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="4" face="Times New Roman" style="font-size:14.0pt;font-weight:bold;">SECURITIES
    AND EXCHANGE COMMISSION</font></b></p>
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    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">OMB Number: 3235-0060<br>
    Expires: April&nbsp;30, 2009<br>
    Estimated average burden hours per response. . 38.0</font></p>
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    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Washington,
    D.C. 20549<br><br></font></b></p>
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    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;font-weight:bold;">FORM 8-K</font></b></p>
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  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">CURRENT REPORT</font></b></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">Pursuant to Section&nbsp;13 Or 15(d)&nbsp;of
  The Securities Exchange Act of 1934</font></b></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Date of Report (Date of earliest
  event reported)&nbsp;<b>May&nbsp;22, 2008</b></font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;font-weight:bold;">MathStar,&nbsp;Inc.</font></b></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Exact name of registrant as specified in its charter)</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
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    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Delaware</font></b></p>
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    <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
    <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
    </td>
    <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.0%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">000-51560</font></b></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
    <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
    </td>
    <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.0%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">41-1881957</font></b></p>
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    <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.0%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(State or other jurisdiction</font></p>
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    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.0%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Commission</font></p>
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    <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.0%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(IRS Employer</font></p>
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    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">of incorporation)</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.0%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">File Number)</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.0%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.0%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Identification No.)</font></p>
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  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
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    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">19075 N.W. Tanasbourne Drive,
    Suite&nbsp;200, Hillsboro, Oregon</font></b></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.08%;">
    <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
    </td>
    <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.08%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">97124</font></b></p>
    </td>
   </tr>
   <tr>
    <td width="65%" valign="top" style="padding:0in 0in 0in 0in;width:65.84%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Address of principal executive
    offices)</font></p>
    </td>
    <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.08%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="32%" valign="top" style="padding:0in 0in 0in 0in;width:32.08%;">
    <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Zip Code)</font></p>
    </td>
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  </div>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Registrant</font><font size="2" style="font-size:10.0pt;">&#146;s telephone number,
  including area code&nbsp;<b>(503) 726-5500</b></font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Former name or former address, if
  changed since last report.)</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Check the appropriate box below if
  the Form&nbsp;8-K filing is intended to simultaneously satisfy the filing
  obligation of the registrant under any of the following provisions (see General
  Instructions A.2. below):</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt .25in;text-indent:-.25in;"><font size="2" face="Wingdings" style="font-size:10.0pt;">o</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Written communications
  pursuant to Rule&nbsp;425 under the Securities Act (17 CFR 230.425)</font></p>
  
  <p style="margin:0in 0in .0001pt .25in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt .25in;text-indent:-.25in;"><font size="2" face="Wingdings" style="font-size:10.0pt;">o</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Soliciting material
  pursuant to Rule&nbsp;14a-12 under the Exchange Act (17 CFR 240.14a-12)</font></p>
  
  <p style="margin:0in 0in .0001pt .25in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt .25in;text-indent:-.25in;"><font size="2" face="Wingdings" style="font-size:10.0pt;">o</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Pre-commencement
  communications pursuant to Rule&nbsp;14d-2(b)&nbsp;under the Exchange Act (17
  CFR 240.14d-2(b))</font></p>
  
  <p style="margin:0in 0in .0001pt .25in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt .25in;text-indent:-.25in;"><font size="2" face="Wingdings" style="font-size:10.0pt;">o</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">Pre-commencement
  communications pursuant to Rule&nbsp;13e-4(c)&nbsp;under the Exchange Act (17
  CFR 240.13e-4(c))</font></p>
  
  <div style="border:none;border-bottom:double windowtext 6.0pt;padding:0in 0in 0in 0in;">
  
  <p style="border:none;margin:0in 0in .0001pt .25in;padding:0in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  </div>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>
  
  </div>
  <!-- SEQ.=1,FOLIO='',FILE='C:\JMS\c900126\08-15013-1\task2954549\15013-1-ba.htm',USER='c900126',CD='May 22 17:39 2008' -->
  
  
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  <div style="font-family:Times New Roman;">
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section&nbsp;5 &#150; Corporate
  Governance and Management</font></b></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item 5.02.&#160;
  Departure of Directors or Certain Officers; Election of Directors;
  Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.</font></b></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font size="2" style="font-size:10.0pt;">The MathStar,&nbsp;Inc.
  Amended and Restated 2004 Long-Term Incentive Plan (the &#147;2004 Incentive Plan&#148;)
  was adopted by the board of directors of MathStar,&nbsp;Inc. (&#147;MathStar&#148; or the &#147;Company&#148;) on
  October&nbsp;8, 2004 and amended by the board on May&nbsp;10, 2005.&#160; The 2004 Incentive Plan, as so amended, was
  approved by the Company&#146;s stockholders on June&nbsp;10, 2005.&#160; On February&nbsp;28, 2006, the board approved
  amendments to the 2004 Incentive Plan, and the Company&#146;s stockholders approved
  these amendments at the annual meeting of stockholders held on May&nbsp;18,
  2006.&#160; On February&nbsp;5, 2007, the
  board of directors approved additional amendments to the 2004 Incentive Plan,
  which were approved by the Company&#146;s stockholders at the annual meeting of
  stockholders held on May&nbsp;17, 2007.&#160;
  On February&nbsp;11, 2008, the board of directors approved an amendment
  to the 2004 Incentive Plan increasing the number of shares subject to the 2004
  Incentive Plan from 600,000 shares to 1,200,000 shares.</font><font size="2" style="font-size:10.0pt;">&#160; </font><font size="2" style="font-size:10.0pt;">At the 2008 Annual Meeting of Stockholders&#160; held on May&nbsp;22, 2008 (the &#147;2008 Annual
  Meeting), the stockholders of the Company entitled to notice of and to vote at
  the 2008 Annual Meeting approved the </font><font size="2" style="font-size:10.0pt;">amendment to the 2004
  Incentive Plan.</font></p>
  
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
  following summary describes the principal features of the 2004 Incentive Plan,
  as so amended.&#160; This summary is qualified
  in its entirety by reference to the complete text of the 2004 Incentive Plan,
  which is filed as Exhibit&nbsp;10.1 to this Current Report on Form&nbsp;8-K.&#160; Terms not defined herein shall have the
  meanings ascribed to them in the 2004 Incentive Plan.&#160; All share numbers used in this Current Report
  on Form&nbsp;8-K take into account the one-for-five reverse stock split approved
  by the stockholders at the 2008 Annual Meeting.</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Administration</font></b></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The 2004 Incentive Plan is administered by
  the Compensation Committee of MathStar&#146;s board of directors, which has the
  exclusive power to make Awards and to determine when and to whom Awards will be
  granted under the 2004 Incentive Plan, other than the NQOs automatically
  granted to non-employee directors under the 2004 Incentive Plan.&nbsp; In
  addition, the Compensation Committee determines the form, amount and other
  terms and conditions of each Award, subject to the provisions of the 2004
  Incentive Plan.&nbsp; The determinations made by the Compensation Committee
  under the 2004 Incentive Plan are final, binding and conclusive.</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Participants</font></b></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">A participant in the 2004 Incentive Plan
  means an employee of MathStar or an Affiliate who is selected by the
  Compensation Committee to participate in the 2004 Incentive Plan; a director of
  MathStar who receives Options or Awards under the 2004 Incentive Plan; or any
  consultant, agent, advisor or independent contractor who is selected by the
  Compensation Committee to participate in the 2004 Incentive Plan and who
  renders <i>bona fide</i> services to
  MathStar or its Affiliate.&nbsp; However, only employees of MathStar are
  eligible for selection to receive Options qualified as ISOs under Section&nbsp;422
  of the Code.</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Term of Plan; Amendment</font></b></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The 2004 Incentive Plan will terminate on the
  earlier of the date on which it is terminated by MathStar&#146;s board of directors
  or October&nbsp;7, 2014.&nbsp; However, the termination of the 2004 Incentive Plan
  will not affect any Awards then outstanding under the 2004 Incentive
  Plan.&nbsp; The board of directors may amend, alter or discontinue the 2004
  Incentive Plan.&nbsp; However, no amendment, alteration or discontinuation may
  be made by the board without the consent of a Participant in the 2004 Incentive
  Plan if such action would diminish any of the rights of the Participant under
  any Award held by the Participant.</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2</font></p>
  
  <div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>
  
  </div>
  <!-- SEQ.=1,FOLIO='2',FILE='C:\JMS\c900126\08-15013-1\task2954549\15013-1-ba.htm',USER='c900126',CD='May 22 17:39 2008' -->
  
  
  <br clear="all" style="page-break-before:always;">
  
  
  <div style="font-family:Times New Roman;">
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Shares Subject to 2004 Incentive Plan</font></b></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The 2004 Incentive Plan currently provides
  that the total number of shares of MathStar&#146;s common stock that may be issued
  under the 2004 Incentive Plan is 1,200,000&nbsp;shares, subject to adjustment
  as provided in the 2004 Incentive Plan.&#160;
  This takes into account the approval by MathStar&#146;s stockholders at the
  2008 Annual Meeting of the amendment increasing the number of shares subject to
  the 2004 Incentive Plan.&#160; The shares to
  be issued under the 2004 Incentive Plan are currently authorized but unissued
  shares of MathStar&#146;s common stock.&nbsp; The number of shares of MathStar&#146;s
  common stock available under the 2004 Incentive Plan and under other equity
  Awards granted under the 2004 Incentive Plan, the exercise price of any Option
  and the exercise price of any stock appreciation right granted under the 2004
  Incentive Plan will be appropriately adjusted upon any stock dividend, stock
  split, reverse stock split, reclassification, combination, exchange of shares
  or other similar recapitalizations of MathStar.</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Options</font></b></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Compensation Committee has authorized a
  subcommittee (the &#147;Subcommittee&#148;) consisting of Douglas&nbsp;M. Pihl and
  Daniel&nbsp;J. Sweeney to grant options under the 2004 Incentive Plan to new
  employees in accordance with limitations and guidelines established by the
  Compensation Committee.&nbsp; Upon the grant of an Option under the 2004
  Incentive Plan, other than the automatic grant of Options to MathStar&#146;s
  non-employee directors described below, the Compensation Committee or the
  Subcommittee fixes a number of shares of MathStar&#146;s common stock that the
  optionee may purchase upon exercise of the Option and the price at which the
  shares may be purchased.&nbsp; With regard to ISOs, the exercise price cannot
  be less than the Fair Market Value of the common stock at the time the ISO is
  granted or 110% of Fair Market Value in certain cases.&nbsp; In addition, the
  aggregate Fair Market Value of common stock (determined at the time an ISO is
  granted) subject to ISOs granted to an employee under all of MathStar&#146;s option
  plans that become exercisable for the first time by such employee during any
  calendar year may not exceed $100,000.&nbsp; The exercise price of NQOs may be
  less than, equal to or greater than Fair Market Value.&nbsp; Each Option
  granted under the 2004 Incentive Plan will be exercisable by the optionee only
  during the term fixed by the Compensation Committee or the Subcommittee, with
  such term ending not later than 10 years after the date of grant.&nbsp; Payment
  for shares upon exercise of any Option granted under the 2004 Incentive Plan
  may be made in cash, in shares of Company&#146;s common stock that have been owned
  for more than six months having an aggregate Fair Market Value on the date of
  exercise which is not less than the exercise price of the shares of common
  stock being purchased, partly in cash and partly in such shares, or by the
  delivery of irrevocable instructions to a broker to sell shares of common stock
  obtained upon the exercise of an NQO and to deliver to MathStar an amount out
  of the proceeds of such sale equal to the aggregate exercise price of the
  shares being purchased.</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Automatic
  Grants of NQOs to Non-Employee Directors.</font></i><font size="2" style="font-size:10.0pt;">&nbsp; The 2004 Incentive
  Plan provides non-employee directors of MathStar (each an &#147;Eligible Director&#148;)
  with automatic grants of NQOs.&nbsp; Each Eligible Director is automatically
  granted NQOs to purchase 5,000 shares on the date of his or her initial
  election or appointment to the board of directors (in each case, an &#147;Initial
  Grant&#148;), which will vest as to one-third of the shares subject to the option on
  the first, second and third anniversary dates of the date of grant so long as
  he or she then is a director of MathStar.&nbsp; Each Eligible Director will
  also automatically receive an option to purchase 1,000 shares upon each
  anniversary date of the initial grant to them of an automatic option so long as
  they are then MathStar directors, which vests as to all of the shares subject
  to the option on the first anniversary date of the date of grant if they are
  then directors of MathStar.&nbsp; All options automatically granted under the
  2004 Incentive Plan expire 10 years after the date of grant.</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The exercise price per share for each NQO
  automatically granted under the 2004 Incentive Plan to Eligible Directors is
  not less than the Fair Market Value of a share of MathStar&#146;s common stock on the
  date such NQO is granted.&nbsp; Payment for shares upon exercise of any NQOs
  automatically granted to Eligible Directors under the 2004 Incentive Plan may
  be made in cash, in shares of MathStar&#146;s common stock that have been owned for
  more than six months having an aggregate Fair Market Value on the date of
  exercise which is not less than the exercise price of the shares of common
  stock being purchased, </font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3</font></p>
  
  <div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>
  
  </div>
  <!-- SEQ.=1,FOLIO='3',FILE='C:\JMS\c900126\08-15013-1\task2954549\15013-1-ba.htm',USER='c900126',CD='May 22 17:39 2008' -->
  
  
  <br clear="all" style="page-break-before:always;">
  
  
  <div style="font-family:Times New Roman;">
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">partly
  in cash and partly in such shares, or by the delivery of irrevocable
  instructions to a broker to sell shares of common stock obtained upon the
  exercise of an NQO and to deliver to MathStar an amount out of the proceeds of
  such sale equal to the aggregate exercise price of the shares being purchased.</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In addition to such automatic NQO grants, the
  2004 Incentive Plan also permits the Compensation Committee to make
  discretionary grants of stock options to any and all directors, including
  Eligible Directors, as described below.</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Discretionary
  Option Grants of NQOs to Non-Employee Directors.</font></i><font size="2" style="font-size:10.0pt;">&nbsp; Upon any
  discretionary grant of NQOs to MathStar&#146;s non-employee directors under the 2004
  Incentive Plan, the Compensation Committee will fix the number of shares of
  MathStar&#146;s common stock that the optionee may purchase upon exercise of the
  option and the exercise price at which the shares may be purchased.&nbsp; The
  exercise price of such NQOs cannot be less than the Fair Market Value of the
  common stock at the time the option is granted.</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Each NQO will be exercisable by the optionee only during the term fixed
  by the Compensation Committee, with such term ending not later than 10 years
  after the date of grant.&nbsp; Payment for shares upon exercise of any NQOs
  granted to Eligible Directors under the 2004 Incentive Plan may be made in
  cash, in shares of Company&#146;s common stock that have been owned for more than
  six months having an aggregate Fair Market Value on the date of exercise which
  is not less than the exercise price of the shares of common stock being
  purchased, partly in cash and partly in such shares, or by the delivery of
  irrevocable instructions to a broker to sell shares of common stock obtained
  upon the exercise of an NQO and to deliver to MathStar an amount out of the
  proceeds of such sale equal to the aggregate exercise price of the shares being
  purchased.</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Stock Appreciation Rights</font></b></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Compensation Committee may grant stock
  appreciation rights (&#147;SARs&#148;) under the 2004 Incentive Plan independent of an
  Option or in connection with an Option.&nbsp; Upon the grant of a SAR under the
  2004 Incentive Plan, the Compensation Committee will fix its exercise price,
  which cannot be less than the Fair Market Value of MathStar&#146;s common stock and,
  in the case if a SAR granted in conjunction with an Option, not less than the
  exercise price of the related Option.&nbsp; Each SAR granted independent of an
  Option will entitle a participant upon exercise to an amount equal to the
  excess of the Fair Market Value of the common stock on the date of exercise
  less the exercise price per share, times the number of shares of common stock
  covered by the SAR.&nbsp; As determined by the Compensation Committee at the
  time of grant, payment of such amount upon exercise of a SAR will be made in
  shares of common stock or in cash, or partly in shares and partly in cash.</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Restricted Stock Awards</font></b></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Restricted stock awards granted under the
  2004 Incentive Plan will entitle the holder to receive shares of MathStar&#146;s
  common stock, which are subject to forfeiture to MathStar and transfer
  restrictions if certain conditions are not met as determined by the
  Compensation Committee at the time of grant.&nbsp; When a restricted stock
  award is granted, the Compensation Committee may establish a period during
  which the holder cannot sell or otherwise transfer the shares subject to the
  award.&nbsp; During such period, the holder of the restricted stock award
  otherwise has the rights of a stockholder of MathStar with respect to the
  shares subject to the award, including the right to vote the shares and to
  receive any dividends and other distributions.&nbsp; The Compensation Committee
  may determine the period of time during which a participant receiving a
  restricted stock award must remain a continuous employee of MathStar in order
  for the forfeiture and transfer restrictions to lapse.&nbsp; In addition, the Compensation
  Committee may provide that such restrictions lapse in installments with respect
  to specified portions of the shares of stock covered by the restricted stock
  award.&nbsp; The Compensation Committee also may impose performance or other
  conditions that will subject the shares subject to the award to forfeiture and
  transfer restrictions.&nbsp; The </font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4</font></p>
  
  <div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>
  
  </div>
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  <br clear="all" style="page-break-before:always;">
  
  
  <div style="font-family:Times New Roman;">
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Compensation
  Committee may, at any time, waive all or any part of any restrictions
  applicable to restricted stock awards.</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Other
  Awards</font></b></p>
  
  <p style="margin:0in 0in .0001pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Other
  Stock-Based Awards.</font></i><font size="2" style="font-size:10.0pt;">&nbsp; Under the 2004 Incentive Plan, the
  Compensation Committee has the power to grant awards of shares of MathStar&#146;s
  common stock and awards that are valued in whole or in part by reference to, or
  otherwise based on, shares of common stock or their Fair Market Value.&nbsp;
  The 2004 Incentive Plan provides that such other stock-based awards will be in
  such form, and will depend on such conditions, as the Compensation Committee
  determines including, without limitation, the right to receive, or vest with
  respect to, one or more shares of common stock (or the equivalent cash value of
  such shares) upon the completion of a specified period of service, the
  occurrence of an event and/or the attainment of performance objectives.&nbsp; Subject
  to the provisions of the 2004 Incentive Plan, the Compensation Committee will
  determine the number of shares of common stock to be awarded to a participant
  under other stock-based awards, whether such awards shall be settled in cash,
  shares of common stock or combination of cash and such shares, and other terms
  and conditions of such awards.</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Other
  Cash-Based Awards.</font></i><font size="2" style="font-size:10.0pt;">&nbsp; Subject to the terms of the 2004 Incentive
  Plan, the Compensation Committee may grant other incentives denominated and
  payable in cash under the 2004 Incentive Plan as it determines to be in the
  best interests of MathStar and subject to such other terms and conditions as it
  deems appropriate.</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Performance-Based
  Awards.&nbsp; </font></i><font size="2" style="font-size:10.0pt;">Under the 2004 Incentive Plan, the Compensation
  Committee may grant performance-based Options, Awards of restricted stock or
  other Awards, which will be based on the attainment of written performance
  goals approved by the Compensation Committee for a performance period
  established by the Committee.&nbsp; The performance goals must be objective and
  must be based upon the criteria set forth in the 2004 Incentive Plan.&nbsp;
  Under the 2004 Incentive Plan, the Compensation Committee must determine
  whether, with respect to a performance period, the applicable performance goals
  have been met with respect to a given participant and must certify and
  ascertain the amount of the applicable performance-based award.&nbsp; The
  amount of a performance-based award actually paid to a participant under the
  2004 Incentive Plan may be less than the amount determined by the applicable
  performance goal formula, at the discretion of the Compensation
  Committee.&nbsp; The amount of the performance-based award will be paid to the
  participant at such time as determined by the Compensation Committee after the
  end of the covered performance period.</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Non-Transferability of Awards</font></b></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Awards granted under the 2004 Incentive Plan
  are non-transferable other than by will or by the applicable laws of descent
  and distribution.&nbsp; In addition, a Participant may designate a beneficiary to
  succeed to the Participant&#146;s Awards under the 2004 Incentive Plan if allowed by
  the agreement evidencing the Award, in which case the Award may be exercised by
  the personal representative for the participant&#146;s estate or by any other person
  who acquired the right to exercise such Award by reason of the participant&#146;s
  death.&nbsp; During a Participant&#146;s lifetime, all Awards granted under the 2004
  Incentive Plan may be exercised only by the Participant.</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item 5.03.&#160; Amendments to
  Articles of Incorporation or Bylaws; Change in Fiscal Year.</font></b></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Effective May&nbsp;23,
  2008, the Company amended Article&nbsp;IV(A)&nbsp;its Certificate of
  Incorporation to reduce the number of authorized shares of its stock from
  100,000,000 shares to 28,000,000 shares and reduce the number of authorized
  shares of its common stock from 90,000,000 shares to 18,000,000 shares.&#160; All other provisions of Article&nbsp;IV(A)&nbsp;of
  the Certificate of Incorporation remained the same.&#160; A copy of the Certificate of Amendment of the
  Certificate of Incorporation of the Company is filed as Exhibit&nbsp;3.1 to
  this Current Report on Form&nbsp;8-K.</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5</font></p>
  
  <div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>
  
  </div>
  <!-- SEQ.=1,FOLIO='5',FILE='C:\JMS\c900126\08-15013-1\task2954549\15013-1-ba.htm',USER='c900126',CD='May 22 17:39 2008' -->
  
  
  <br clear="all" style="page-break-before:always;">
  
  
  <div>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Section&nbsp;9
  &#150; Financial Statements and Exhibits</font></b></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Item 9.01.&#160; Financial
  Statements and Exhibits</font></b></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
  exhibits listed below are filed herewith.</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Exhibits</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.1&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Certificate of Amendment of the
  Certificate of Incorporation of MathStar,&nbsp;Inc.</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.1&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; MathStar,&nbsp;Inc.
  Amended and Restated 2004 Long-Term Incentive Plan</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6</font></p>
  
  <div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>
  
  </div>
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  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SIGNATURES</font></b></p>
  
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pursuant
  to the requirements of the Securities Exchange Act of 1934, the registrant has
  duly caused this report to be signed on its behalf by the undersigned hereunto
  duly authorized.</font></p>
  
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
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    <td width="51%" valign="top" style="padding:0in 0in 0in 0in;width:51.12%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="5%" valign="top" style="padding:0in 0in 0in 0in;width:5.54%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="43%" valign="top" style="padding:0in 0in 0in 0in;width:43.34%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">MathStar,&nbsp;Inc.</font></p>
    </td>
   </tr>
   <tr>
    <td width="51%" valign="top" style="padding:0in 0in 0in 0in;width:51.12%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="5%" valign="top" style="padding:0in 0in 0in 0in;width:5.54%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="43%" valign="top" style="padding:0in 0in 0in 0in;width:43.34%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
   </tr>
   <tr>
    <td width="51%" valign="top" style="padding:0in 0in 0in 0in;width:51.12%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="5%" valign="top" style="padding:0in 0in 0in 0in;width:5.54%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="43%" valign="top" style="padding:0in 0in 0in 0in;width:43.34%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
   </tr>
   <tr>
    <td width="51%" valign="top" style="padding:0in 0in 0in 0in;width:51.12%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Date: May&nbsp;22, 2008</font></p>
    </td>
    <td width="5%" valign="top" style="padding:0in 0in 0in 0in;width:5.54%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="43%" valign="top" style="padding:0in 0in 0in 0in;width:43.34%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
   </tr>
   <tr>
    <td width="51%" valign="top" style="padding:0in 0in 0in 0in;width:51.12%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="5%" valign="top" style="padding:0in 0in 0in 0in;width:5.54%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="43%" valign="top" style="padding:0in 0in 0in 0in;width:43.34%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
   </tr>
   <tr>
    <td width="51%" valign="top" style="padding:0in 0in 0in 0in;width:51.12%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="5%" valign="top" style="padding:0in 0in 0in 0in;width:5.54%;">
    <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By</font></p>
    </td>
    <td width="43%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:43.34%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;/s/ Douglas M. Pihl</font></p>
    </td>
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    <td width="51%" valign="top" style="padding:0in 0in 0in 0in;width:51.12%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="5%" valign="top" style="padding:0in 0in 0in 0in;width:5.54%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="43%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:43.34%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chairman and Chief Executive Officer</font></p>
    </td>
   </tr>
   <tr>
    <td width="51%" valign="top" style="padding:0in 0in 0in 0in;width:51.12%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="5%" valign="top" style="padding:0in 0in 0in 0in;width:5.54%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="43%" valign="top" style="padding:0in 0in 0in 0in;width:43.34%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Principal Executive Officer and</font></p>
    </td>
   </tr>
   <tr>
    <td width="51%" valign="top" style="padding:0in 0in 0in 0in;width:51.12%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="5%" valign="top" style="padding:0in 0in 0in 0in;width:5.54%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="43%" valign="top" style="padding:0in 0in 0in 0in;width:43.34%;">
    <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;Principal Financial Officer)</font></p>
    </td>
   </tr>
  </table>
  
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metadata_documents: [{"type": "8-K", "sequence": "1", "filename": "a08-15013_18k.htm", "description": "8-K", "secsgml_size_bytes": 53979}]
metadata_filer: {"company-data": {"conformed-name": "MATHSTAR INC", "cik": "0001118037", "assigned-sic": "3674", "irs-number": "000000000", "state-of-incorporation": "MN", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-51560", "film-number": "08856676"}, "business-address": {"street1": "19075 NORTHWEST TANASBOURNE DRIVE", "street2": "SUITE 200", "city": "HILLSBORO", "state": "OR", "zip": "97124", "phone": "503-726-5500"}, "mail-address": {"street1": "19075 NORTHWEST TANASBOURNE DRIVE", "street2": "SUITE 200", "city": "HILLSBORO", "state": "OR", "zip": "97124"}}
text: UNITED
    STATES
  OMB APPROVAL
  SECURITIES
    AND EXCHANGE COMMISSION
  OMB Number: 3235-0060
  Expires: April 30, 2009
  Estimated average burden hours per response. . 38.0
  Washington,
    D.C. 20549
  FORM 8-K
  CURRENT REPORT
  Pursuant to Section 13 Or 15(d) of
  The Securities Exchange Act of 1934
  Date of Report (Date of earliest
  event reported)
  May 22, 2008
  MathStar, Inc.
  (Exact name of registrant as specified in its charter)
  Delaware
  000-51560
  41-1881957
  (State or other jurisdiction
  (Commission
  (IRS Employer
  of incorporation)
  File Number)
  Identification No.)
  19075 N.W. Tanasbourne Drive,
    Suite 200, Hillsboro, Oregon
  97124
  (Address of principal executive
    offices)
  (Zip Code)
  Registrant
  's telephone number,
  including area code
  (503) 726-5500
  (Former name or former address, if
  changed since last report.)
  Check the appropriate box below if
  the Form 8-K filing is intended to simultaneously satisfy the filing
  obligation of the registrant under any of the following provisions (see General
  Instructions A.2. below):
  o
  Written communications
  pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
  o
  Soliciting material
  pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
  o
  Pre-commencement
  communications pursuant to Rule 14d-2(b) under the Exchange Act (17
  CFR 240.14d-2(b))
  o
  Pre-commencement
  communications pursuant to Rule 13e-4(c) under the Exchange Act (17
  CFR 240.13e-4(c))
  Section 5 – Corporate
  Governance and Management
  Item 5.02. 
  Departure of Directors or Certain Officers; Election of Directors;
  Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
  (e)
  The MathStar, Inc.
  Amended and Restated 2004 Long-Term Incentive Plan (the "2004 Incentive Plan")
  was adopted by the board of directors of MathStar, Inc. ("MathStar" or the "Company") on
  October 8, 2004 and amended by the board on May 10, 2005.  The 2004 Incentive Plan, as so amended, was
  approved by the Company's stockholders on June 10, 2005.  On February 28, 2006, the board approved
  amendments to the 2004 Incentive Plan, and the Company's stockholders approved
  these amendments at the annual meeting of stockholders held on May 18,
  2006.  On February 5, 2007, the
  board of directors approved additional amendments to the 2004 Incentive Plan,
  which were approved by the Company's stockholders at the annual meeting of
  stockholders held on May 17, 2007. 
  On February 11, 2008, the board of directors approved an amendment
  to the 2004 Incentive Plan increasing the number of shares subject to the 2004
  Incentive Plan from 600,000 shares to 1,200,000 shares.
  At the 2008 Annual Meeting of Stockholders  held on May 22, 2008 (the "2008 Annual
  Meeting), the stockholders of the Company entitled to notice of and to vote at
  the 2008 Annual Meeting approved the
  amendment to the 2004
  Incentive Plan.
  The
  following summary describes the principal features of the 2004 Incentive Plan,
  as so amended.  This summary is qualified
  in its entirety by reference to the complete text of the 2004 Incentive Plan,
  which is filed as Exhibit 10.1 to this Current Report on Form 8-K.  Terms not defined herein shall have the
  meanings ascribed to them in the 2004 Incentive Plan.  All share numbers used in this Current Report
  on Form 8-K take into account the one-for-five reverse stock split approved
  by the stockholders at the 2008 Annual Meeting.
  Administration
  The 2004 Incentive Plan is administered by
  the Compensation Committee of MathStar's board of directors, which has the
  exclusive power to make Awards and to determine when and to whom Awards will be
  granted under the 2004 Incentive Plan, other than the NQOs automatically
  granted to non-employee directors under the 2004 Incentive Plan.  In
  addition, the Compensation Committee determines the form, amount and other
  terms and conditions of each Award, subject to the provisions of the 2004
  Incentive Plan.  The determinations made by the Compensation Committee
  under the 2004 Incentive Plan are final, binding and conclusive.
  Participants
  A participant in the 2004 Incentive Plan
  means an employee of MathStar or an Affiliate who is selected by the
  Compensation Committee to participate in the 2004 Incentive Plan; a director of
  MathStar who receives Options or Awards under the 2004 Incentive Plan; or any
  consultant, agent, advisor or independent contractor who is selected by the
  Compensation Committee to participate in the 2004 Incentive Plan and who
  renders
  bona fide
  services to
  MathStar or its Affiliate.  However, only employees of MathStar are
  eligible for selection to receive Options qualified as ISOs under Section 422
  of the Code.
  Term of Plan; Amendment
  The 2004 Incentive Plan will terminate on the
  earlier of the date on which it is terminated by MathStar's board of directors
  or October 7, 2014.  However, the termination of the 2004 Incentive Plan
  will not affect any Awards then outstanding under the 2004 Incentive
  Plan.  The board of directors may amend, alter or discontinue the 2004
  Incentive Plan.  However, no amendment, alteration or discontinuation may
  be made by the board without the consent of a Participant in the 2004 Incentive
  Plan if such action would diminish any of the rights of the Participant under
  any Award held by the Participant.
  2
  Shares Subject to 2004 Incentive Plan
  The 2004 Incentive Plan currently provides
  that the total number of shares of MathStar's common stock that may be issued
  under the 2004 Incentive Plan is 1,200,000 shares, subject to adjustment
  as provided in the 2004 Incentive Plan. 
  This takes into account the approval by MathStar's stockholders at the
  2008 Annual Meeting of the amendment increasing the number of shares subject to
  the 2004 Incentive Plan.  The shares to
  be issued under the 2004 Incentive Plan are currently authorized but unissued
  shares of MathStar's common stock.  The number of shares of MathStar's
  common stock available under the 2004 Incentive Plan and under other equity
  Awards granted under the 2004 Incentive Plan, the exercise price of any Option
  and the exercise price of any stock appreciation right granted under the 2004
  Incentive Plan will be appropriately adjusted upon any stock dividend, stock
  split, reverse stock split, reclassification, combination, exchange of shares
  or other similar recapitalizations of MathStar.
  Options
  The Compensation Committee has authorized a
  subcommittee (the "Subcommittee") consisting of Douglas M. Pihl and
  Daniel J. Sweeney to grant options under the 2004 Incentive Plan to new
  employees in accordance with limitations and guidelines established by the
  Compensation Committee.  Upon the grant of an Option under the 2004
  Incentive Plan, other than the automatic grant of Options to MathStar's
  non-employee directors described below, the Compensation Committee or the
  Subcommittee fixes a number of shares of MathStar's common stock that the
  optionee may purchase upon exercise of the Option and the price at which the
  shares may be purchased.  With regard to ISOs, the exercise price cannot
  be less than the Fair Market Value of the common stock at the time the ISO is
  granted or 110% of Fair Market Value in certain cases.  In addition, the
  aggregate Fair Market Value of common stock (determined at the time an ISO is
  granted) subject to ISOs granted to an employee under all of MathStar's option
  plans that become exercisable for the first time by such employee during any
  calendar year may not exceed $100,000.  The exercise price of NQOs may be
  less than, equal to or greater than Fair Market Value.  Each Option
  granted under the 2004 Incentive Plan will be exercisable by the optionee only
  during the term fixed by the Compensation Committee or the Subcommittee, with
  such term ending not later than 10 years after the date of grant.  Payment
  for shares upon exercise of any Option granted under the 2004 Incentive Plan
  may be made in cash, in shares of Company's common stock that have been owned
  for more than six months having an aggregate Fair Market Value on the date of
  exercise which is not less than the exercise price of the shares of common
  stock being purchased, partly in cash and partly in such shares, or by the
  delivery of irrevocable instructions to a broker to sell shares of common stock
  obtained upon the exercise of an NQO and to deliver to MathStar an amount out
  of the proceeds of such sale equal to the aggregate exercise price of the
  shares being purchased.
  Automatic
  Grants of NQOs to Non-Employee Directors.
  The 2004 Incentive
  Plan provides non-employee directors of MathStar (each an "Eligible Director")
  with automatic grants of NQOs.  Each Eligible Director is automatically
  granted NQOs to purchase 5,000 shares on the date of his or her initial
  election or appointment to the board of directors (in each case, an "Initial
  Grant"), which will vest as to one-third of the shares subject to the option on
  the first, second and third anniversary dates of the date of grant so long as
  he or she then is a director of MathStar.  Each Eligible Director will
  also automatically receive an option to purchase 1,000 shares upon each
  anniversary date of the initial grant to them of an automatic option so long as
  they are then MathStar directors, which vests as to all of the shares subject
  to the option on the first anniversary date of the date of grant if they are
  then directors of MathStar.  All options automatically granted under the
  2004 Incentive Plan expire 10 years after the date of grant.
  The exercise price per share for each NQO
  automatically granted under the 2004 Incentive Plan to Eligible Directors is
  not less than the Fair Market Value of a share of MathStar's common stock on the
  date such NQO is granted.  Payment for shares upon exercise of any NQOs
  automatically granted to Eligible Directors under the 2004 Incentive Plan may
  be made in cash, in shares of MathStar's common stock that have been owned for
  more than six months having an aggregate Fair Market Value on the date of
  exercise which is not less than the exercise price of the shares of common
  stock being purchased,
  3
  partly
  in cash and partly in such shares, or by the delivery of irrevocable
  instructions to a broker to sell shares of common stock obtained upon the
  exercise of an NQO and to deliver to MathStar an amount out of the proceeds of
  such sale equal to the aggregate exercise price of the shares being purchased.
  In addition to such automatic NQO grants, the
  2004 Incentive Plan also permits the Compensation Committee to make
  discretionary grants of stock options to any and all directors, including
  Eligible Directors, as described below.
  Discretionary
  Option Grants of NQOs to Non-Employee Directors.
  Upon any
  discretionary grant of NQOs to MathStar's non-employee directors under the 2004
  Incentive Plan, the Compensation Committee will fix the number of shares of
  MathStar's common stock that the optionee may purchase upon exercise of the
  option and the exercise price at which the shares may be purchased.  The
  exercise price of such NQOs cannot be less than the Fair Market Value of the
  common stock at the time the option is granted.
  Each NQO will be exercisable by the optionee only during the term fixed
  by the Compensation Committee, with such term ending not later than 10 years
  after the date of grant.  Payment for shares upon exercise of any NQOs
  granted to Eligible Directors under the 2004 Incentive Plan may be made in
  cash, in shares of Company's common stock that have been owned for more than
  six months having an aggregate Fair Market Value on the date of exercise which
  is not less than the exercise price of the shares of common stock being
  purchased, partly in cash and partly in such shares, or by the delivery of
  irrevocable instructions to a broker to sell shares of common stock obtained
  upon the exercise of an NQO and to deliver to MathStar an amount out of the
  proceeds of such sale equal to the aggregate exercise price of the shares being
  purchased.
  Stock Appreciation Rights
  The Compensation Committee may grant stock
  appreciation rights ("SARs") under the 2004 Incentive Plan independent of an
  Option or in connection with an Option.  Upon the grant of a SAR under the
  2004 Incentive Plan, the Compensation Committee will fix its exercise price,
  which cannot be less than the Fair Market Value of MathStar's common stock and,
  in the case if a SAR granted in conjunction with an Option, not less than the
  exercise price of the related Option.  Each SAR granted independent of an
  Option will entitle a participant upon exercise to an amount equal to the
  excess of the Fair Market Value of the common stock on the date of exercise
  less the exercise price per share, times the number of shares of common stock
  covered by the SAR.  As determined by the Compensation Committee at the
  time of grant, payment of such amount upon exercise of a SAR will be made in
  shares of common stock or in cash, or partly in shares and partly in cash.
  Restricted Stock Awards
  Restricted stock awards granted under the
  2004 Incentive Plan will entitle the holder to receive shares of MathStar's
  common stock, which are subject to forfeiture to MathStar and transfer
  restrictions if certain conditions are not met as determined by the
  Compensation Committee at the time of grant.  When a restricted stock
  award is granted, the Compensation Committee may establish a period during
  which the holder cannot sell or otherwise transfer the shares subject to the
  award.  During such period, the holder of the restricted stock award
  otherwise has the rights of a stockholder of MathStar with respect to the
  shares subject to the award, including the right to vote the shares and to
  receive any dividends and other distributions.  The Compensation Committee
  may determine the period of time during which a participant receiving a
  restricted stock award must remain a continuous employee of MathStar in order
  for the forfeiture and transfer restrictions to lapse.  In addition, the Compensation
  Committee may provide that such restrictions lapse in installments with respect
  to specified portions of the shares of stock covered by the restricted stock
  award.  The Compensation Committee also may impose performance or other
  conditions that will subject the shares subject to the award to forfeiture and
  transfer restrictions.  The
  4
  Compensation
  Committee may, at any time, waive all or any part of any restrictions
  applicable to restricted stock awards.
  Other
  Awards
  Other
  Stock-Based Awards.
  Under the 2004 Incentive Plan, the
  Compensation Committee has the power to grant awards of shares of MathStar's
  common stock and awards that are valued in whole or in part by reference to, or
  otherwise based on, shares of common stock or their Fair Market Value. 
  The 2004 Incentive Plan provides that such other stock-based awards will be in
  such form, and will depend on such conditions, as the Compensation Committee
  determines including, without limitation, the right to receive, or vest with
  respect to, one or more shares of common stock (or the equivalent cash value of
  such shares) upon the completion of a specified period of service, the
  occurrence of an event and/or the attainment of performance objectives.  Subject
  to the provisions of the 2004 Incentive Plan, the Compensation Committee will
  determine the number of shares of common stock to be awarded to a participant
  under other stock-based awards, whether such awards shall be settled in cash,
  shares of common stock or combination of cash and such shares, and other terms
  and conditions of such awards.
  Other
  Cash-Based Awards.
  Subject to the terms of the 2004 Incentive
  Plan, the Compensation Committee may grant other incentives denominated and
  payable in cash under the 2004 Incentive Plan as it determines to be in the
  best interests of MathStar and subject to such other terms and conditions as it
  deems appropriate.
  Performance-Based
  Awards.
  Under the 2004 Incentive Plan, the Compensation
  Committee may grant performance-based Options, Awards of restricted stock or
  other Awards, which will be based on the attainment of written performance
  goals approved by the Compensation Committee for a performance period
  established by the Committee.  The performance goals must be objective and
  must be based upon the criteria set forth in the 2004 Incentive Plan. 
  Under the 2004 Incentive Plan, the Compensation Committee must determine
  whether, with respect to a performance period, the applicable performance goals
  have been met with respect to a given participant and must certify and
  ascertain the amount of the applicable performance-based award.  The
  amount of a performance-based award actually paid to a participant under the
  2004 Incentive Plan may be less than the amount determined by the applicable
  performance goal formula, at the discretion of the Compensation
  Committee.  The amount of the performance-based award will be paid to the
  participant at such time as determined by the Compensation Committee after the
  end of the covered performance period.
  Non-Transferability of Awards
  Awards granted under the 2004 Incentive Plan
  are non-transferable other than by will or by the applicable laws of descent
  and distribution.  In addition, a Participant may designate a beneficiary to
  succeed to the Participant's Awards under the 2004 Incentive Plan if allowed by
  the agreement evidencing the Award, in which case the Award may be exercised by
  the personal representative for the participant's estate or by any other person
  who acquired the right to exercise such Award by reason of the participant's
  death.  During a Participant's lifetime, all Awards granted under the 2004
  Incentive Plan may be exercised only by the Participant.
  Item 5.03.  Amendments to
  Articles of Incorporation or Bylaws; Change in Fiscal Year.
  (a)           Effective May 23,
  2008, the Company amended Article IV(A) its Certificate of
  Incorporation to reduce the number of authorized shares of its stock from
  100,000,000 shares to 28,000,000 shares and reduce the number of authorized
  shares of its common stock from 90,000,000 shares to 18,000,000 shares.  All other provisions of Article IV(A) of
  the Certificate of Incorporation remained the same.  A copy of the Certificate of Amendment of the
  Certificate of Incorporation of the Company is filed as Exhibit 3.1 to
  this Current Report on Form 8-K.
  5
  Section 9
  – Financial Statements and Exhibits
  Item 9.01.  Financial
  Statements and Exhibits
  The
  exhibits listed below are filed herewith.
  (d)           Exhibits
  3.1           Certificate of Amendment of the
  Certificate of Incorporation of MathStar, Inc.
  10.1         MathStar, Inc.
  Amended and Restated 2004 Long-Term Incentive Plan
  6
  SIGNATURES
  Pursuant
  to the requirements of the Securities Exchange Act of 1934, the registrant has
  duly caused this report to be signed on its behalf by the undersigned hereunto
  duly authorized.
  MathStar, Inc.
  Date: May 22, 2008
  By
  /s/ Douglas M. Pihl
  Chairman and Chief Executive Officer
  (Principal Executive Officer and
  Principal Financial Officer)