<PAGE>
                                                                   Exhibit 10.18
________________________________________________________________________________
                                        VIRAGE LOGIC CORPORATION
NOTICE OF GRANT OF STOCK OPTION         ID: 77-0416232
                                        47100 Bayside Parkway
                                        Fremont, CA 94538

________________________________________________________________________________

JAMES J. ENSELL                         OPTION NUMBER:  000945
47100 BAYSIDE PARKWAY                   PLAN:           2002
FREMONT, CA US 94538

________________________________________________________________________________

Effective 10/20/2003 ("the Grant Date"), you have been granted a(n) Incentive
Stock Option to buy 44,444 shares of Common Stock of Virage Logic Corporation
("the Company") under the Company's 2002
Equity Incentive Plan ("the Plan") at an exercise price of $9.00000 per share.

The total exercise price for the shares covered by this option is $399,996.00.

Subject to the Plan, the shares covered by this option will vest (become
exercisable) as set forth below.

<Table>
<Caption>
               Shares      Vest Type       Full Vest    Expiration
               ------    -------------    ----------    ----------
<S>            <C>        <C>             <C>           <C>
                9,524     On Vest Date    10/13/2004    10/20/2013
                1,587          Monthly    12/13/2004    10/20/2013
               11,111          Monthly    12/13/2005    10/20/2013
               11,111          Monthly    12/13/2006    10/20/2013
               11,111          Monthly    12/13/2007    10/20/2013
</Table>



Shares that vest "On Vest Date" will become exercisable on the date indicated
under "Full Vest." Shares that vest "Monthly" will become exercisable in equal
monthly installments, each on the monthly anniversary of the date indicated
under "Full Vest."

The option expires on the date indicated in the table above under "Expiration."
The option is governed by the terms of the Plan and we encourage you to
carefully review the Plan, a copy of which is attached to the Notice of Grant.
You should also review the Prospectus for the Plan dated March 8, 2002. By
signing the Notice of Grant, you accept, and agree to be bound by, all terms
and conditions of the Plan and this Notice of Grant.

If you decide to purchase shares under this option, you will be required to
submit a completed exercise agreement on a form approved by the Company,
together with payment for the shares. You may pay for the shares (plus any
associated withholding taxes) using cash, a check, a wire transfer or any other
form of payment listed in section 6.4(b), 6.4(c)(i) and (ii) of the Plan and
permitted by the Administrator at the time you wish to exercise. Shares
available under this option must be purchased, if at all, no later than the
Expiration Date.


/s/ James R. Pekarsky                                  11/13/03
_____________________________________________       ____________________________
Virage Logic Corporation                            Date


/s/ James J. Ensell                                    11/13/03
_____________________________________________       ____________________________
James J. Ensell                                     Date


                                                                Date: 11/13/2003
<PAGE>
                                                        VIRAGE LOGIC CORPORATION
NOTICE OF GRANT OF STOCK OPTION                                    ID:77-0416232
                                                           47100 Bayside Parkway
                                                               Fremont, CA 94538


JAMES J. ENSELL                                            OPTION NUMBER: 000946
47100 BAYSIDE PARKWAY                                      PLAN:            2002
FREMONT, CA US 94538


Effective 10/20/2003 ("the Grant Date"), you have been granted a(n)
Non-Qualified Stock Option to buy 155,556 shares of Common Stock of Virage
Logic Corporation ("the Company") under the Company's 2002 Equity Incentive
Plan ("the Plan") at an exercise price of $9.00000 per share.

The total exercise price for the shares covered by this option is $1,400,004.00.

Subject to the Plan, the shares covered by this option will vest (become
exercisable) as set forth below.

<Table>
<Caption>
<S>         <C>               <C>             <C>
Shares      Vest Type         Full Vest       Expiration
------      ---------         ---------       ----------

40,476      On Vest Date      10/13/2004      10/20/2013
 6,746           Monthly      12/13/2004      10/20/2013
38,889           Monthly      12/13/2005      10/20/2013
38,889           Monthly      12/13/2006      10/20/2013
30,556           Monthly      10/13/2007      10/20/2013

</Table>

Shares that vest "On Vest Date" will become exercisable on the date indicated
under "Full Vest." Shares that vest "Monthly" will become exercisable in equal
monthly installments, each on the monthly anniversary of the date indicated
under "Full Vest."

The option expires on the date indicated in the table above under "Expiration."
The option is governed by the terms of the Plan and we encourage you to
carefully review the Plan, a copy of which is attached to the Notice of Grant.
You should also review the Prospectus for the Plan dated March 8, 2002. By
signing the Notice of Grant, you accept, and agree to be bound by, all terms and
conditions of the Plan and this Notice of Grant.

If you decide to purchase shares under this option, you will be required to
submit a completed exercise agreement on a form approved by the Company,
together with payment for the shares. You may pay for the shares (plus any
associated withholding taxes) using cash, a check, a wire transfer or any other
form of payment listed in section 6.4(b), 6.4(c)(i) and (ii) of the Plan and
permitted by the Administrator at the time you wish to exercise. Shares
available under this option must be purchased, if at all, no later than the
Expiration Date.

/s/ James R. Pekarsky                        11/13/03
----------------------                  -------------------------
Virage Logic Corporation                Date

/s/ James J. Ensell                          11/13/03
----------------------                  -------------------------
James. J. Ensell                        Date
<PAGE>
Addendum to October 20, 2003 Notice of Grant
James J. Ensell
Option Number: 945       ISO  44,444 shares
Option Number: 946       NQ   155,556 shares

In the event the Company is subject to a "Change of Control", as defined in the
2002 Equity Incentive Plan, within the first year of your employment and you
are involuntarily terminated in connection with that Change of Control, 50,000
shares, of your 200,000 share new hire option grant, will immediately vest and
become exercisable in accordance with the option agreement upon your
termination.