Document:

Form of 2004 Equity Incentive Plan

 Exhibit 10.2 
  
 FORM OF 
 NETLOGIC MICROSYSTEMS, INC. 
  
 2004 EQUITY
INCENTIVE PLAN 

					
	 	  	 	  	Page

			
	1.	  	Purpose	  	1
			
	2.	  	Definitions	  	1
			
	3.	  	Term of the Plan	  	5
			
	4.	  	Stock Subject to the Plan	  	5
			
	5.	  	Administration	  	5
			
	6.	  	Authorization of Grants	  	6
			
	7.	  	Specific Terms of Awards	  	7
			
	8.	  	Adjustment Provisions	  	14
			
	9.	  	Settlement of Awards	  	16
			
	10.	  	Reservation of Stock	  	18
			
	11.	  	Limitation of Rights in Stock; No Special Service Rights	  	18
			
	12.	  	Unfunded Status of Plan	  	18
			
	13.	  	Nonexclusivity of the Plan	  	18
			
	14.	  	Termination and Amendment of the Plan	  	18
			
	15.	  	Notices and Other Communications	  	19
			
	16.	  	Governing Law	  	19

  

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 NETLOGIC MICROSYSTEMS, INC. 
  
 2004 EQUITY INCENTIVE PLAN 
  
 1. Purpose 
  
 This Plan is intended to encourage ownership of Stock by employees, consultants and directors of the Company and its Affiliates and to provide additional
incentive for them to promote the success of the Company’s business through the grant of Awards of or pertaining to shares of the Company’s Stock. The Plan is intended to be an incentive stock option plan within the meaning of Section 422
of the Code, but not all Awards are required to be Incentive Options. 
  
 2.
Definitions 
  
 As used in this Plan, the following terms
shall have the following meanings: 
  
 2.1
Accelerate, Accelerated, and Acceleration means: (a) when used with respect to an Option or Stock Appreciation Right, that as of the time of reference the Option or Stock Appreciation Right will become
exercisable with respect to some or all of the shares of Stock for which it was not then otherwise exercisable by its terms; (b) when used with respect to Restricted Stock or Restricted Stock Units, that the Risk of Forfeiture otherwise applicable
to the Stock or Units shall expire with respect to some or all of the shares of Restricted Stock or Units then still otherwise subject to the Risk of Forfeiture; and (c) when used with respect to Performance Units, that the applicable Performance
Goals shall be deemed to have been met as to some or all of the Units. 
  
 2.2 Acquisition means a merger or consolidation of the Company with or into another person or the sale, transfer, or other disposition of all or substantially all of the Company’s assets to one or more other persons in a
single transaction or series of related transactions. 
  
 2.3
Affiliate means any corporation, partnership, limited liability company, business trust, or other entity controlling, controlled by or under common control with the Company. 
  
 2.4 Award means any grant or sale pursuant to the Plan of Options, Stock Appreciation Rights, Performance
Units, Restricted Stock, Restricted Stock Units or Stock Grants. 
  
 2.5 Award Agreement means an agreement between the Company and the recipient of an Award, setting forth the terms and conditions of the Award. 
  
 2.6 Board means the Company’s Board of Directors. 
  
 2.7 Change of Control means the occurrence of any of the
following after the date of the approval of the Plan by the Board: 
  
 (a) an Acquisition, unless securities possessing more than 50% of the total combined voting power of the survivor’s or acquiror’s outstanding securities (or the securities of any parent thereof) are held by
a person or persons who held securities possessing more than 50% of the total combined voting power of the Company’s outstanding securities immediately prior to that transaction, or 

 (b) any person or group of persons (within the meaning of Section 13(d)(3) of the
Exchange Act) directly or indirectly acquires beneficial ownership (determined pursuant to SEC Rule 13d-3 promulgated under the said Exchange Act) of securities possessing more than 50% of the total combined voting power of the Company’s
outstanding securities pursuant to a tender or exchange offer made directly to the Company’s stockholders that the Board does not recommend such stockholders accept, other than (i) the Company or an Affiliate, (ii) an employee benefit plan of
the Company or any of its Affiliates, (iii) a trustee or other fiduciary holding securities under an employee benefit plan of the Company or any of its Affiliates, or (iv) an underwriter temporarily holding securities pursuant to an offering of such
securities, or 
  
 (c) over a period of 36
consecutive months or less, there is a change in the composition of the Board such that a majority of the Board members (rounded up to the next whole number, if a fraction) ceases, by reason of one or more proxy contests for the election of Board
members, to be composed of individuals who either (i) have been Board members continuously since the beginning of that period, or (ii) have been elected or nominated for election as Board members during such period by at least a majority of the
Board members described in the preceding clause (i) who were still in office at the time that election or nomination was approved by the Board; or 
  
 (d) a majority of the Board votes in favor of a decision that a Change of Control has occurred. 
  
 2.8 Code means the Internal Revenue Code of 1986, as amended
from time to time, or any successor statute thereto, and any regulations issued from time to time thereunder. 
  
 2.9 Committee means the Compensation Committee of the Board, which in general is responsible for the administration of the Plan, as provided
in Section 5 of the Plan. For any period during which no such committee is in existence, “Committee” shall mean the Board, and all authority and responsibility assigned to the Committee under the Plan shall be exercised, if at all, by the
Board. 
  
 2.10 Company means NetLogic Microsystems,
Inc., a corporation organized under the laws of the State of Delaware. 
  
 2.11 Continuous Employment means the absence of any interruption or termination of service as an employee, director or consultant of the Company or any Subsidiary. Continuous Employment shall not be considered interrupted
during any period of (i) any leave of absence approved by the Company or (ii) transfers between locations of the Company or between the Company and any Parent, Subsidiary or successor of the Company. 
  
 2.12 Covered Employee means an employee who is a “covered
employee” within the meaning of Section 162(m) of the Code. 
  
 2.13 Effective Date means the effective date of this Plan, which is the closing date under a firm commitment underwriting agreement entered into in connection with the initial public offering of stock. 
  
 2.14 Exchange Act means the Securities Exchange Act of 1934, as
amended. 
  
 2.15 Grant Date means the date as of
which an Option is granted, as determined under Section 7.1(a). 
  

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 2.16 Incentive Option means an Option which by its terms is to be treated as an
“incentive stock option” within the meaning of Section 422 of the Code. 
  
 2.17 Market Value means the value of a share of Stock on a particular date determined by such methods or procedures as may be established by the Committee. Unless otherwise determined by the Committee,
the Market Value of Stock as of any date is the closing price for the Stock as reported on the Nasdaq National Market (or on any national securities exchange or other established market on which the Stock is then listed) for that date or, if no
closing price is reported for that date, the closing price on the next preceding date for which a closing price was reported. For purposes of Awards effective as of the effective date of the Company’s initial public offering, Market Value of
Stock shall be the price at which the Company’s Stock is offered to the public in its initial public offering. 
  
 2.18 Nonstatutory Option means any Option that is not an Incentive Option. 
  
 2.19 Option means an option to purchase shares of Stock. 
  
 2.20 Optionee means a Participant to whom an Option shall have
been granted under the Plan. 
  
 2.21 Parent means a
parent corporation of the Company, whether now or hereafter existing, as defined by Section 424(e) of the Code. 
  
 2.22 Participant means any holder of an outstanding Award under the Plan. 
  
 2.23 Performance Criteria means the criteria that the Committee select for purposes of establishing the
Performance Goal or Performance Goals for a Participant for a Performance Period. The Performance Criteria used to establish Performance Goals are limited to: pre- or after-tax net earnings, sales growth, operating earnings, operating cash flow,
return on net assets, return on stockholders’ equity, return on assets, return on capital, Stock price growth, stockholder returns, gross or net profit margin, earnings per share, price per share of Stock, and market share, any of which may be
measured either in absolute terms or as compared to any incremental increase or as compared to results of a peer group. The Committee will, in the manner and within the time prescribed by Section 162(m) of the Code in the case of Qualified
Performance-Based Awards, objectively define the manner of calculating the Performance Criteria it selects to use for such Performance Period for such Participant. 
  
 2.24 Performance Goals means, for a Performance Period, the written goals established by the Committee for the
Performance Period based upon the Performance Criteria. Depending on the Performance Criteria used to establish such Performance Goals, the Performance Goals may be expressed in terms of overall Company performance or the performance of a division,
business unit, Subsidiary, or an individual. 
  
 2.25
Performance Period means the one or more periods, which may be of varying and overlapping durations, selected by the Committee, over which the attainment of one or more Performance Goals will be measured for purposes of determining a
Participant’s right to, and the payment of, a Performance Unit. 
  

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 2.26 Performance Unit means a right granted to a Participant under Section 7.5, to receive
cash, Stock or other Awards, the payment of which is contingent on achieving Performance Goals established by the Committee. 
  
 2.27 Plan means this 2004 Equity Incentive Plan of the Company, as amended from time to time, and including any attachments or addenda
hereto. 
  
 2.28 Qualified Performance-Based Awards
means Awards intended to qualify as “performance-based compensation” under Section 162(m) of the Code. 
  
 2.29 Restricted Stock means a grant or sale of shares of Stock to a Participant subject to a Risk of Forfeiture. 
  
 2.30 Restricted Stock Units means rights to receive shares of
Stock at the close of a Restriction Period, subject to a Risk of Forfeiture. 
  
 2.31 Restriction Period means the period of time, established by the Committee in connection with an Award of Restricted Stock, during which the shares of Restricted Stock are subject to a Risk of
Forfeiture described in the applicable Award Agreement. 
  
 2.32
Risk of Forfeiture means a limitation on the right of the Participant to retain Restricted Stock or Restricted Stock Units, including a right in the Company to reacquire shares of Restricted Stock at less than their then Market Value,
arising because of the occurrence or non-occurrence of specified events or conditions. 
  
 2.33 Securities Act means the Securities Act of 1933, as amended. 
  
 2.34 SEC means the Securities and Exchange Commission. 
  
 2.35 Stock means common stock, par value $0.001 per share, of the Company, and such other securities as may be
substituted for Stock pursuant to Section 8. 
  
 2.36 Stock
Appreciation Right means a right to receive any excess in the Market Value of shares of Stock (except as otherwise provided in Section 7.2(c)) over a specified exercise price. 
  
 2.37 Stock Grant means the grant of shares of Stock not subject to restrictions or other forfeiture
conditions. 
  
 2.38 Subsidiary means a subsidiary
corporation of the Company, whether now or hereafter existing, as defined in Section 424(f) of the Code. 
  
 2.39 Ten Percent Owner means a person who owns, or is deemed within the meaning of Section 422(b)(6) of the Code to own, stock possessing
more than 10% of the total combined voting power of all classes of stock of the Company (or any Parent or Subsidiary of the Company). Whether a person is a Ten Percent Owner shall be determined with respect to an Option based on the facts existing
immediately prior to the Grant Date of the Option. 
  
 2.40
Vesting Commencement Date means, with respect to an Option or Stock Appreciation Right, the date, determined by the Committee, on which the vesting of the Option or 
  

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 Stock Appreciation Right shall commence, which may be the Grant Date or a date prior to or after the Grant Date.

  
 3. Term of the Plan 
  
 Unless the Plan shall have been earlier terminated by the Board, Awards may
be granted under this Plan at any time in the period commencing on the date of approval of the Plan by the Board and ending immediately prior to the tenth anniversary of the earlier of the adoption of the Plan by the Board or approval of the Plan by
the Company’s stockholders. Awards granted pursuant to the Plan within that period shall not expire solely by reason of the termination of the Plan. Awards of Incentive Options granted prior to stockholder approval of the Plan are expressly
conditioned upon such approval, but in the event of the failure of the stockholders to approve the Plan shall thereafter and for all purposes be deemed to constitute Nonstatutory Options. 
  
 4. Stock Subject to the Plan 
  
 Subject to Section 8 of the Plan, the maximum aggregate number of shares of Stock which may be issued pursuant to or subject to outstanding Awards granted
under the Plan is              shares of Stock, plus an annual increase to be added on the first day of the Company’s fiscal year beginning in 2005 equal to the lesser of
(i)              shares of Stock or (ii)              percent of the outstanding shares of Stock on the Effective
Date. For purposes of applying the foregoing limitation, if any Option or Stock Appreciation Right expires, terminates, or is cancelled for any reason without having been exercised in full, or if any other Award is forfeited by the recipient, the
shares not purchased by the Optionee or which are forfeited by the recipient shall again be available for Awards to be granted under the Plan. In addition, settlement of any Award shall not count against the foregoing limitations except to the
extent settled in the form of Stock. Shares of Stock issued pursuant to Awards granted under the Plan and later repurchased by the Company pursuant to any repurchase right (other than the repurchase of shares that have not vested and are subject to
forfeiture prior to vesting) that the Company may have shall not be available for future grant of Awards under the Plan. 
  
 5. Administration 
  
 The Plan shall be administered by the Committee; provided, however, that at any time and on any one or more occasions the Board may itself exercise
any of the powers and responsibilities assigned the Committee under the Plan and when so acting shall have the benefit of all of the provisions of the Plan pertaining to the Committee’s exercise of its authorities hereunder; and provided
further, however, that the Committee may delegate to an executive officer or officers the authority to grant Awards hereunder to employees who are not officers, and to consultants, in accordance with such guidelines as the Committee shall set
forth at any time or from time to time. Subject to the provisions of the Plan, the Committee shall have complete authority, in its discretion, to make or to select the manner of making all determinations with respect to each Award to be granted by
the Company under the Plan, including the employee, consultant or director to receive the Award and the form of Award. In making such determinations, the Committee may take into account the nature of the services rendered by the respective
employees, consultants, and directors, their present and potential contributions to the success of the Company and its Affiliates, and such other factors as the Committee in its discretion shall deem relevant. Subject to the provisions of the Plan,
the Committee shall also have complete authority to interpret the Plan, to prescribe, amend and rescind rules and regulations relating to it, to determine the terms and provisions of the respective 
  

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 Award Agreements (which need not be identical), and to make all other determinations necessary or advisable for the
administration of the Plan. The Committee’s determinations made in good faith on matters referred to in the Plan shall be final, binding and conclusive on all persons having or claiming any interest under the Plan or an Award made pursuant to
hereto. 
  
 6. Authorization of Grants 
  
 6.1 Eligibility. The Committee may grant from time to time and at any
time prior to the termination of the Plan one or more Awards, either alone or in combination with any other Awards, to any employee of or consultant to one or more of the Company and its Affiliates or to any non-employee member of the Board or of
any board of directors (or similar governing authority) of any Affiliate. However, only employees of the Company, and of any Parent or Subsidiary of the Company, shall be eligible for the grant of an Incentive Option. Further, in no event shall the
number of shares of Stock covered by Options or other Awards granted to any one person in any one calendar year exceed three percent of the aggregate number of shares of Stock subject to the Plan. 
  
 6.2 General Terms of Awards. Each grant of an Award shall be subject
to all applicable terms and conditions of the Plan (including but not limited to any specific terms and conditions applicable to that type of Award set out in the following Section), and such other terms and conditions, not inconsistent with the
terms of the Plan, as the Committee may prescribe. No prospective Participant shall have any rights with respect to an Award, unless and until such Participant has executed an Award agreement evidencing the Award, delivered a fully executed copy
thereof to the Company, and otherwise complied with the applicable terms and conditions of such Award. 
  
 6.3 Effect of Termination of Employment, Disability or Death. 
  
 (a) Termination of Employment, Etc. Unless the Committee shall provide otherwise with respect to any
Award, if the Participant’s employment or other association with the Company and its Affiliates ends for any reason other than by total disability or death, including because of the Participant’s employer ceasing to be an Affiliate, (a)
any outstanding Option or Stock Appreciation Right of the Participant shall cease to be exercisable in any respect not later than 90 days following that event and, for the period it remains exercisable following that event, shall be exercisable only
to the extent exercisable at the date of that event, and (b) any other outstanding Award of the Participant shall be forfeited or otherwise subject to return to or repurchase by the Company on the terms specified in the applicable Award Agreement.
Military or sick leave or other personal leave approved by an authorized representative of the Company shall not be deemed a termination of employment or other association, provided that it does not exceed the longer of 90 days or the period
during which the absent Participant’s reemployment rights, if any, are guaranteed by statute or by contract. 
  
 (b) Disability of Participant. If a Participant’s employment or other association with the Company and its Affiliates ends due
to disability (as defined in Section 22(e)(3) of the Code), and such Participant was in Continuous Employment from the Grant Date until the date of termination of service, any outstanding Option or Stock Appreciation Right may be exercised at any
time within [six months] following the date of termination of service, but only to the extent of the accrued right to exercise at the time of termination of service, subject to the condition that no Option or Stock Appreciation Right shall be
exercised after its expiration in accordance with its terms. 
  

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 (c) Death of Participant. In the event of the death during the Option period, or
period during Stock Appreciation Right may be exercised, of a Participant who is at the time of his or her death an employee, director or consultant and who was in Continuous Employment as such from the Grant Date until the date of death, the Option
or Stock Appreciation Right of the Participant may be exercised at any time within 12 months following the date of death by such Participant’s estate or by a person who acquired the right to exercise the Option or Stock Appreciation Right by
bequest, inheritance or otherwise as a result of the Participant’s death, but only to the extent of the accrued right to exercise at the time of death, subject to the condition that no Option or Stock Appreciation Right shall be exercised after
its expiration in accordance with its terms. 
  
 6.4
Transferability of Awards. Except as otherwise provided in this Section 6.4, Awards shall not be transferable, and no Award or interest therein may be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by
will or by the laws of descent and distribution. All of a Participant’s rights in any Award may be exercised during the life of the Participant only by the Participant or the Participant’s legal representative. However, the Committee may,
at or after the grant of an Award of a Nonstatutory Option, or shares of Restricted Stock, provide that such Award may be transferred by the recipient through a gift or domestic relations order in settlement of marital property rights to any of the
following donees or transferees and may be reacquired by the Participant from any of such donors or transferees: 
  
 (a) any “family member,” which includes any child, stepchild, grandchild, parent, stepparent, spouse, former
spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law, including adoptive relationships, any person sharing the Participant’s household (other than a tenant or employee);

  
 (b) a trust in which family members have more
than fifty percent (50%) of the beneficial interests; 
  
 (c) a foundation in which “family members” (or the Participant) control the management of assets; and 
  
 (d) any other entity in which “family members” (or the Participant) own more than fifty percent (50%) of the voting interests.

  
 provided, that (x) any such transfer is without payment of any
consideration whatsoever and that no transfer shall be valid unless first approved by the Committee, acting in its sole discretion; (y) the Award Agreement pursuant to which such Awards are granted, and any amendments thereto, must be approved by
the Committee and must expressly provide for transferability in a manner consistent with this Section 6.4; and (z) subsequent transfers of transferred Awards shall be prohibited except in accordance with this Section 6.4. Following transfer, any
such Awards shall continue to be subject to the same terms and conditions as were applicable immediately prior to transfer, provided that the term hereof or in the Award Agreement shall continue to be applied with respect to the original
Participant, following which any Options or Stock Appreciation Rights shall be exercisable by the transferee only to the extent, and for the periods specified in the Award Agreement or Section 6.3, as applicable. 
  
 7. Specific Terms of Awards 
  
 7.1 Options. 
  

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 (a) Date of Grant. The granting of an Option shall take place at the time
specified in the Award Agreement. Only if expressly so provided in the applicable Award Agreement shall the Grant Date be the date on which the Award Agreement shall have been duly executed and delivered by the Company and the Optionee. 

 
 (b) Exercise Price. The price at which shares of
Stock may be acquired under each Incentive Option shall be not less than 100 percent of the Market Value of Stock on the Grant Date, or not less than 110 percent of the Market Value of Stock on the Grant Date if the Optionee is a Ten Percent Owner.
The price at which shares may be acquired under each Nonstatutory Option shall not be so limited solely by reason of this Section. 
  
 (c) Option Period. No Incentive Option may be exercised on or after the tenth anniversary of the Grant Date, or on or after the
fifth anniversary of the Grant Date if the Optionee is a Ten Percent Owner. The Option period under each Nonstatutory Option shall not be so limited solely by reason of this Section. 
  
 (d) Exercisability. An Option may be immediately exercisable or become exercisable in such
installments, cumulative or non-cumulative, as the Committee may determine. Unless the Committee specifically determines otherwise at the time of the grant of the Option, each Option shall vest and become exercisable, cumulatively, as to one-fourth
of the shares at the first anniversary of the Vesting Commencement Date and as to one thirty-sixth of the remaining shares subject to the Option at the end of each successive month thereafter until all of the shares subject to the Option have
vested, subject to the Optionee’s Continuous Employment. In the case of an Option not otherwise immediately exercisable in full, the Committee may Accelerate such Option in whole or in part at any time; provided, however, that in the
case of an Incentive Option, any such Acceleration of the Option would not cause the Option to fail to comply with the provisions of Section 422 of the Code or the Optionee consents to the Acceleration. 
  
 (e) Method of Exercise. An Option may be exercised by
the Optionee giving written notice, in the manner provided in Section 16, specifying the number of shares with respect to which the Option is then being exercised. The notice shall be accompanied by payment in the form of cash or check payable to
the order of the Company in an amount equal to the exercise price of the shares to be purchased or, if the Committee had so authorized on the grant of an Incentive Option or on or after grant of an Nonstatutory Option (and subject to such
conditions, if any, as the Committee may deem necessary to avoid adverse accounting effects to the Company) by delivery to the Company of 
  
 (i) shares of Stock having a Market Value equal to the exercise price of the shares to be purchased, or 
  
 (ii) unless prohibited by applicable law, the
Optionee’s executed promissory note in the principal amount equal to the exercise price of the shares to be purchased and otherwise in such form as the Committee shall have approved. 
  
 If the Stock is traded on an established market, payment of any exercise price may also be made through and under the terms and conditions
of any formal cashless exercise program authorized by the Company entailing the sale of the Stock subject to an Option in a brokered transaction (other than to the Company). Receipt by the Company of such notice and payment in any authorized or
combination of authorized means shall constitute the exercise of the Option. Within 30 days thereafter but subject to the remaining provisions of the Plan, the Company shall deliver or cause to 
  

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 be delivered to the Optionee or his agent a certificate or certificates for the number of shares then being purchased.
Such shares shall be fully paid and nonassessable. 
  
 (f) Limit on Incentive Option Characterization. An Incentive Option shall be considered to be an Incentive Option only to the extent that the number of shares of Stock for which the Option first becomes exercisable in a calendar year
do not have an aggregate Market Value (as of the date of the grant of the Option) in excess of the “current limit.” The current limit for any Optionee for any calendar year shall be $100,000 minus the aggregate Market
Value at the date of grant of the number of shares of Stock available for purchase for the first time in the same year under each other Incentive Option previously granted to the Optionee under the Plan, and under each other incentive stock option
previously granted to the Optionee under any other incentive stock option plan of the Company and its Affiliates. Any shares of Stock which would cause the foregoing limit to be violated shall be deemed to have been granted under a separate
Nonstatutory Option, otherwise identical in its terms to those of the Incentive Option. 
  
 (g) Notification of Disposition. Each person exercising any Incentive Option granted under the Plan shall be deemed to have
covenanted with the Company to report to the Company any disposition of such shares prior to the expiration of the holding periods specified by Section 422(a)(1) of the Code and, if and to the extent that the realization of income in such a
disposition imposes upon the Company federal, state, local or other withholding tax requirements, or any such withholding is required to secure for the Company an otherwise available tax deduction, to remit to the Company an amount in cash
sufficient to satisfy those requirements. 
  
 (h)
Automatic Option Grants. The provisions set forth in this Section 7.1(i) shall not be amended more than once every six months other than to comport with changes in the Code, the Employee Retirement Income Security Act of 1974, as
amended, or the rules promulgated thereunder. All grants of Options to non-employee directors under this Plan shall be automatic and nondiscretionary and shall be made strictly in accordance with the following provisions: 
  
 (i) No person shall have any discretion to select which
non-employee directors shall be granted Options. 
  
 (ii) Each non-employee director shall be automatically granted an option (an “Automatic Director Option”) to purchase
                 shares of Stock at the first meeting of the Board following the Annual Meeting of Stockholders in each year, commencing with the 2005 Annual
Meeting of Stockholders, provided that he or she is not an employee and if, as of such date, he or she shall have served on the Board for at least the preceding six months. 
  
 (iii) The terms of an Automatic Director Option granted hereunder shall be as follows: 
  
 (A) the term of the Automatic Director Option shall be 10
years; 
  
 (B) the exercise price per share shall
be 100 percent of the Market Value per share on the date of grant of the Automatic Director Option. In the event that the date of grant of the Automatic Director Option is not a trading day, the exercise price per share shall be 100 percent of the
Market Value on the next trading day immediately following the date of grant of the Automatic Director Option; 
  

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 (C) subject to Section 9 hereof, the Automatic Director Option shall become exercisable
as to  1/12th of the shares subject to the Automatic Director Option at the end of each calendar month after its
date of grant, provided that the Optionee was in Continuous Employment on such dates; 
  
 (D) upon the occurrence of a Change of Control, any and all Automatic Director Options not already exercisable in full shall Accelerate
with respect to 100 percent of the shares for which such Automatic Director Options are not then exercisable; and 
  
 (E) except as the terms of this Section 7.1(i) otherwise provide, the terms and conditions of this Plan shall apply to Automatic Director
Options. 
  
 (iv) In the event that any Automatic
Director Option granted under the Plan would cause the number of shares subject to outstanding Options plus the number of shares previously purchased under Options to exceed the total number of authorized shares then available under the Plan, the
remaining shares available for Option grant shall be granted under Options to the non-employee directors on a pro rata basis. No further grants shall be made until such time, if any, as additional shares become available for grant under the Plan
through action of the Board or the stockholders to increase the number of shares which may be issued under the Plan or through cancellation or expiration of Awards previously granted hereunder. 
  
 7.2 Stock Appreciation Rights. 
  
 (a) Tandem or Stand-Alone. Stock Appreciation Rights
may be granted in tandem with an Option (at or, in the case of a Nonstatutory Option, after, the award of the Option), or alone and unrelated to an Option. Stock Appreciation Rights in tandem with an Option shall terminate to the extent that the
related Option is exercised, and the related Option shall terminate to the extent that the tandem Stock Appreciation Rights are exercised. 
  
 (b) Exercise Price. Stock Appreciation Rights shall have such exercise price as the Committee may determine, except that in the
case of Stock Appreciation Rights in tandem with Options, the exercise price of the Stock Appreciation Rights shall equal the exercise price of the related Option. 
  
 (c) Other Terms. Except as the Committee may deem inappropriate or inapplicable in the circumstances,
Stock Appreciation Rights shall be subject to terms and conditions substantially similar to those applicable to a Nonstatutory Option. In addition, a Stock Appreciation Right related to an Option which can only be exercised during limited periods
following a Change of Control may entitle the Participant to receive an amount based upon the highest price paid or offered for Stock in any transaction relating to the Change of Control or paid during the 30-day period immediately preceding the
occurrence of the Change of Control in any transaction reported in the stock market in which the Stock is normally traded. 
  
 7.3 Restricted Stock. 
  

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 (a) Purchase Price. Shares of Restricted Stock shall be issued under the Plan for
such consideration, in cash, other property or services, or any combination thereof, as is determined by the Committee. 
  
 (b) Issuance of Certificates. Each Participant receiving a Restricted Stock Award, subject to subsection (c) below, shall be issued
a stock certificate in respect of such shares of Restricted Stock. Such certificate shall be registered in the name of such Participant, and, if applicable, shall bear an appropriate legend referring to the terms, conditions, and restrictions
applicable to such Award substantially in the following form: 
  
 The transferability of this certificate and the shares represented by this certificate are subject to the terms and conditions of the NetLogic Microsystems, Inc. 2004 Equity Incentive Plan and an Award Agreement entered into by the
registered owner and NetLogic Microsystems, Inc. Copies of such Plan and Agreement are on file in the offices of NetLogic Microsystems, Inc. 
  
 (c) Escrow of Shares. The Committee may require that the stock certificates evidencing shares of Restricted Stock be held in
custody by a designated escrow agent (which may but need not be the Company) until the restrictions thereon shall have lapsed, and that the Participant deliver a stock power, endorsed in blank, relating to the Stock covered by such Award.

  
 (d) Restrictions and Restriction
Period. During the Restriction Period applicable to shares of Restricted Stock, such shares shall be subject to limitations on transferability and a Risk of Forfeiture arising on the basis of such conditions related to the performance of
services, Company or Affiliate performance or otherwise as the Committee may determine and provide for in the applicable Award Agreement. Any such Risk of Forfeiture may be waived or terminated, or the Restriction Period shortened, at any time by
the Committee on such basis as it deems appropriate. 
  
 (e) Rights Pending Lapse of Risk of Forfeiture or Forfeiture of Award. Except as otherwise provided in the Plan or the applicable Award Agreement, at all times prior to lapse of any Risk of Forfeiture applicable to, or forfeiture of,
an Award of Restricted Stock, the Participant shall have all of the rights of a stockholder of the Company, including the right to vote, and the right to receive any dividends with respect to, the shares of Restricted Stock. The Committee, as
determined at the time of Award, may permit or require the payment of cash dividends to be deferred and, if the Committee so determines, reinvested in additional Restricted Stock to the extent shares are available under Section 4. 
  
 (f) Lapse of Restrictions. If and when the
Restriction Period expires without a prior forfeiture of the Restricted Stock, the certificates for such shares shall be delivered to the Participant promptly if not theretofore so delivered. 
  
 7.4 Restricted Stock Units. 
  
 (a) Character. Each Restricted Stock Unit shall
entitle the recipient to a share of Stock at a close of such Restriction Period as the Committee may establish and subject to a Risk of Forfeiture arising on the basis of such conditions relating to the performance of services, Company or Affiliate
performance or otherwise as the Committee may determine and provide for in the applicable Award Agreement. Any such Risk of Forfeiture may be waived or terminated, or the Restriction Period shortened, at any time by the Committee on such basis as it
deems appropriate. 
  

 11 

 (b) Form and Timing of Payment. Payment of earned Restricted Stock Units shall be
made in a single lump sum following the close of the applicable Restriction Period. At the discretion of the Committee, Participants may be entitled to receive payments equivalent to any dividends declared with respect to Stock referenced in grants
of Restricted Stock Units but only following the close of the applicable Restriction Period and then only if the underlying Stock shall have been earned. Unless the Committee shall provide otherwise, any such dividend equivalents shall be paid, if
at all, without interest or other earnings. 
  
 7.5 Performance
Units. 
  
 (a) Character. Each
Performance Unit shall entitle the recipient to the value of a specified number of shares of Stock, over the initial value for such number of shares, if any, established by the Committee at the time of grant, at the close of a specified Performance
Period to the extent specified Performance Goals shall have been achieved. 
  
 (b) Earning of Performance Units. The Committee shall set Performance Goals in its discretion which, depending on the extent to which they are met within the applicable Performance Period, will determine the
number and value of Performance Units that will be paid out to the Participant. After the applicable Performance Period has ended, the holder of Performance Units shall be entitled to receive payout on the number and value of Performance Units
earned by the Participant over the Performance Period, to be determined as a function of the extent to which the corresponding Performance Goals have been achieved. 
  
 (c) Form and Timing of Payment. Payment of earned Performance Units shall be made in a single lump
sum following the close of the applicable Performance Period. At the discretion of the Committee, Participants may be entitled to receive any dividends declared with respect to Stock which have been earned in connection with grants of Performance
Units which have been earned, but not yet distributed to Participants. The Committee may permit or, if it so provides at grant require, a Participant to defer such Participant’s receipt of the payment of cash or the delivery of Stock that would
otherwise be due to such Participant by virtue of the satisfaction of any requirements or goals with respect to Performance Units. If any such deferral election is required or permitted, the Committee shall establish rules and procedures for such
payment deferrals. 
  
 7.6 Stock Grants. Stock Grants shall
be awarded solely in recognition of significant contributions to the success of the Company or its Affiliates, in lieu of compensation otherwise already due and in such other limited circumstances as the Committee deems appropriate. Stock Grants
shall be made without forfeiture conditions of any kind. 
  
 7.7
Qualified Performance-Based Awards. 
  
 (a) Purpose. The purpose of this Section 7.7 is to provide the Committee the ability to qualify Awards as “performance-based compensation” under Section 162(m) of the Code. If the Committee, in its discretion, decides to
grant an Award as a Qualified Performance-Based Award, the provisions of this Section 7.7 will control over any contrary provision contained in the Plan. In the course of granting any Award, the Committee may specifically designate the Award as
intended to qualify as a Qualified Performance-Based Award. However, no Award shall be considered to have failed to qualify as a Qualified Performance-Based Award solely because the Award is not expressly designated as a Qualified Performance-Based
Award, if the Award otherwise satisfies the 
  

 12 

 provisions of this Section 7.7 and the requirements of Section 162(m) of the Code and the regulations
promulgated thereunder applicable to “performance-based compensation.” 
  
 (b) Authority. All grants of Awards intended to qualify as Qualified Performance-Based Awards and determination of terms applicable
thereto shall be made by the Committee or, if not all of the members thereof qualify as “Outside Directors” within the meaning of applicable IRS regulations under Section 162 of the Code, a subcommittee of the Committee
consisting of such of the members of the Committee as do so qualify. Any action by such a subcommittee shall be considered the action of the Committee for purposes of the Plan. 
  
 (c) Applicability. This Section 7.7 will apply only to those Covered Employees, or to those persons
who the Committee determines are reasonably likely to become Covered Employees in the period covered by an Award, selected by the Committee to receive Qualified Performance-Based Awards. The Committee may, in its discretion, grant Awards to Covered
Employees that do not satisfy the requirements of this Section 7.7. 
  
 (d) Discretion of Committee with Respect to Qualified Performance-Based Awards. Options may be granted as Qualified Performance-Based Awards in accordance with Section 7.1, except that the exercise price of any
Option intended to qualify as a Qualified Performance-Based Award shall in no event be less that the Market Value of the Stock on the date of grant. With regard to other Awards intended to qualify as Qualified Performance-Based Awards, such as
Restricted Stock, Restricted Stock Units, or Performance Units, the Committee will have full discretion to select the length of any applicable Restriction Period or Performance Period, the kind and/or level of the applicable Performance Goal, and
whether the Performance Goal is to apply to the Company, a Subsidiary or any division or business unit or to the individual. Any Performance Goal or Goals applicable to Qualified Performance-Based Awards shall be objective, shall be established not
later than 90 days after the beginning of any applicable Performance Period (or at such other date as may be required or permitted for “performance-based compensation” under Section 162(m) of the Code) and shall otherwise meet the
requirements of Section 162(m) of the Code, including the requirement that the outcome of the Performance Goal or Goals be substantially uncertain (as defined in the regulations under Section 162(m) of the Code) at the time established. 

 
 (e) Payment of Qualified Performance-Based Awards.
A Participant will be eligible to receive payment under a Qualified Performance-Based Award which is subject to achievement of a Performance Goal or Goals only if the applicable Performance Goal or Goals period are achieved within the applicable
Performance Period, as determined by the Committee. In determining the actual size of an individual Qualified Performance-Based Award, the Committee may reduce or eliminate the amount of the Qualified Performance-Based Award earned for the
Performance Period, if in its sole and absolute discretion, such reduction or elimination is appropriate. 
  
 (f) Maximum Award Payable. The maximum Qualified Performance-Based Award payment to any one Participant under the Plan for a
Performance Period is the number of shares of Stock set forth in Section 4 above, or if the Qualified Performance-Based Award is paid in cash, that number of shares multiplied by the Market Value of the Stock as of the date the Qualified
Performance-Based Award is granted. 
  
 (g)
Limitation on Adjustments for Certain Events. No adjustment of any Qualified Performance-Based Award pursuant to Section 8 shall be made except on such basis, if any, as will 
  

 13 

 not cause such Award to provide other than “performance-based compensation” within the meaning
of Section 162(m) of the Code. 
  
 7.8 Awards to Participants
Outside the United States. The Committee may modify the terms of any Award under the Plan, granted to a Participant who is, at the time of grant or during the term of the Award, resident or primarily employed outside of the United States in any
manner deemed by the Committee to be necessary or appropriate in order that the Award shall conform to laws, regulations, and customs of the country in which the Participant is then resident or primarily employed, or so that the value and other
benefits of the Award to the Participant, as affected by foreign tax laws and other restrictions applicable as a result of the Participant’s residence or employment abroad, shall be comparable to the value of such an Award to a Participant who
is resident or primarily employed in the United States. The Committee may establish supplements to, or amendments, restatements, or alternative versions of, the Plan for the purpose of granting and administrating any such modified Award. No such
modification, supplement, amendment, restatement or alternative version may increase the share limit of Section 4. 
  
 8. Adjustment Provisions 
  
 8.1 Adjustment for Corporate Actions. All of the share numbers set forth in the Plan reflect the capital structure of the Company as of the
Effective Date. Subject to Section 8.2, if subsequent to that date the outstanding shares of Stock (or any other securities covered by the Plan by reason of the prior application of this Section) are increased, decreased, or exchanged for a
different number or kind of shares or other securities, or if additional shares or new or different shares or other securities are distributed with respect to shares of Stock, through merger, consolidation, sale of all or substantially all the
property of the Company, reorganization, recapitalization, reclassification, stock dividend, stock split, reverse stock split, or other similar distribution with respect to such shares of Stock, an appropriate and proportionate adjustment will be
made in (i) the maximum numbers and kinds of shares provided in Section 4, (ii) the numbers and kinds of shares or other securities subject to the then outstanding Awards, (iii) the exercise price for each share or other unit of any other securities
subject to then outstanding Options and Stock Appreciation Rights (without change in the aggregate purchase price as to which such Options or Rights remain exercisable), and (iv) the repurchase price of each share of Restricted Stock then subject to
a Risk of Forfeiture in the form of a Company repurchase right. 
  
 8.2 Treatment in Certain Acquisitions. 
  
 (a) Subject to any provisions of then outstanding Awards granting greater rights to the holders thereof, in the event of an Acquisition in which outstanding Awards are not Accelerated in full, any then outstanding Awards shall nevertheless
Accelerate in full if not assumed or replaced by comparable Awards referencing shares of the capital stock of the successor or acquiring entity or the entity in control of such successor or acquiring entity, and thereafter (or after a reasonable
period following the Acquisition, as determined by the Committee) terminate. As to any one or more outstanding Awards which are not otherwise Accelerated in full by reason of such Acquisition, the Committee may also, either in advance of an
Acquisition or at the time thereof and upon such terms as it may deem appropriate, provide for the Acceleration of such outstanding Awards in the event that the employment of the Participants should subsequently terminate following the Acquisition.
Each outstanding Award that is assumed in connection with an Acquisition, or is otherwise to continue in effect subsequent to the Acquisition, will be appropriately adjusted, immediately after the 
  

 14 

 Acquisition, as to the number and class of securities and other relevant terms in accordance with Section
8.1. 
  
 (b) For the purposes of this Section
8.2, an Award shall be considered assumed or replaced by a comparable Award if, following the Acquisition, the Award confers the right to purchase, for each share of Stock subject to the Award immediately prior to the Acquisition, the consideration
(whether stock, cash or other securities or property) received in the Acquisition by holders of Stock on the effective date of the Acquisition (and if holders were offered a choice of consideration, the type of consideration chosen by the holders of
a majority of the outstanding shares of Stock); provided, however, that if such consideration received in the Acquisition was not solely common stock of the successor corporation or its Parent or Subsidiary, the Committee may, with the
consent of the successor corporation, provide for the consideration to be received upon the exercise of the Award for each share of Stock subject to the Award to be solely common stock of the successor corporation or its Parent or Subsidiary equal
in fair market value to the per share consideration received by holders of Stock in the Acquisition. 
  
 8.3 Dissolution or Liquidation. Upon dissolution or liquidation of the Company, other than as part of an Acquisition or similar transaction, each
outstanding Option and Stock Appreciation Right shall terminate, but the Optionee or Stock Appreciation Right holder shall have the right, immediately prior to the dissolution or liquidation, to exercise the Option or Stock Appreciation Right to the
extent exercisable on the date of dissolution or liquidation. Upon dissolution or liquidation of the Company, other than as part of an Acquisition or similar transaction, each other outstanding Award shall be forfeited. 
  
 8.4 Adjustment of Awards Upon the Occurrence of Certain Unusual or
Nonrecurring Events. In the event of any corporate action not specifically covered by the preceding sections, including but not limited to an extraordinary cash distribution on Stock, a corporate separation or other reorganization or
liquidation, the Committee may make such adjustment of outstanding Awards and their terms, if any, as it, in its sole discretion, may deem equitable and appropriate in the circumstances. The Committee may make adjustments in the terms and conditions
of, and the criteria included in, Awards in recognition of unusual or nonrecurring events (including, without limitation, the events described in this Section 8.4) affecting the Company or the financial statements of the Company or of changes in
applicable laws, regulations, or accounting principles, whenever the Committee determines that such adjustments are appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the
Plan. 
  
 8.5 Related Matters. Any adjustment in Awards
made pursuant to this Section 8 shall be determined and made, if at all, by the Committee and shall include any correlative modification of terms, including of Option exercise prices, rates of vesting or exercisability, Risks of Forfeiture,
applicable repurchase prices for Restricted Stock, and Performance Goals and other financial objectives which the Committee may deem necessary or appropriate so as to ensure the rights of the Participants in their respective Awards are not
substantially diminished nor enlarged as a result of the adjustment and corporate action other than as expressly contemplated in this Section 8. No fraction of a share shall be purchasable or deliverable upon exercise, but in the event any
adjustment hereunder of the number of shares covered by an Award shall cause such number to include a fraction of a share, such number of shares shall be adjusted to the nearest smaller whole number of shares. No adjustment of an Option exercise
price per share pursuant to this Section 8 shall result in an exercise price which is less than the par value of the Stock. 
  

 15 

 9. Settlement of Awards 
  

9.1 In General. Options and Restricted Stock shall be settled in accordance with their terms. All other Awards may be settled in cash, Stock, or
other Awards, or a combination thereof, as determined by the Committee at or after grant and subject to any contrary Award Agreement. The Committee may not require settlement of any Award in Stock pursuant to the immediately preceding sentence to
the extent issuance of such Stock would be prohibited or unreasonably delayed by reason of any other provision of the Plan. 
  
 9.2 Violation of Law. Notwithstanding any other provision of the Plan or the relevant Award Agreement, if, at any time, in the reasonable opinion
of the Company, the issuance of shares of Stock covered by an Award may constitute a violation of law, then the Company may delay such issuance and the delivery of a certificate for such shares until (i) approval shall have been obtained from such
governmental agencies, other than the Securities and Exchange Commission, as may be required under any applicable law, rule, or regulation and (ii) in the case where such issuance would constitute a violation of a law administered by or a regulation
of the Securities and Exchange Commission, one of the following conditions shall have been satisfied: 
  
 (a) the shares are at the time of the issue of such shares effectively registered under the Securities Act; or 
  
 (b) the Company shall have determined, on such basis as it
deems appropriate (including an opinion of counsel in form and substance satisfactory to the Company) that the sale, transfer, assignment, pledge, encumbrance or other disposition of such shares or such beneficial interest, as the case may be, does
not require registration under the Securities Act or any applicable State securities laws. 
  
 The Company shall make all reasonable efforts to bring about the occurrence of said events. 
  
 9.3 Corporate Restrictions on Rights in Stock. Any Stock to be issued pursuant to Awards granted under the Plan shall be subject to all
restrictions upon the transfer thereof which may be now or hereafter imposed by the charter, certificate or articles, or by laws, of the Company. 
  
 9.4 Investment Representations. The Company shall be under no obligation to issue any shares covered by any Award unless the shares to be issued
pursuant to Awards granted under the Plan have been effectively registered under the Securities Act, or the Participant shall have made such written representations to the Company (upon which the Company believes it may reasonably rely) as the
Company may deem necessary or appropriate for purposes of confirming that the issuance of such shares will be exempt from the registration requirements of the Securities Act and any applicable state securities laws and otherwise in compliance with
all applicable laws, rules and regulations, including but not limited to that the Participant is acquiring the shares for his or her own account for the purpose of investment and not with a view to, or for sale in connection with, the distribution
of any such shares. 
  
 9.5 Registration. If the Company
shall deem it necessary or desirable to register under the Securities Act or other applicable statutes any shares of Stock issued or to be issued pursuant to Awards granted under the Plan, or to qualify any such shares of Stock for exemption from
the Securities Act or other applicable statutes, then the Company shall take such action at its own expense. The Company may require from each recipient of an Award, or each holder of shares of 
  

 16 

 Stock acquired pursuant to the Plan, such information in writing for use in any registration statement, prospectus,
preliminary prospectus or offering circular as is reasonably necessary for that purpose and may require reasonable indemnity to the Company and its officers and directors from that holder against all losses, claims, damage and liabilities arising
from use of the information so furnished and caused by any untrue statement of any material fact therein or caused by the omission to state a material fact required to be stated therein or necessary to make the statements therein not misleading in
the light of the circumstances under which they were made. In addition, the Company may require of any such person that he or she agree that, without the prior written consent of the Company or the managing underwriter in any public offering of
shares of Stock, he or she will not sell, make any short sale of, loan, grant any option for the purchase of, pledge or otherwise encumber, or otherwise dispose of, any shares of Stock during the 180-day period commencing on the effective date of
the registration statement relating to the underwritten public offering of securities. Without limiting the generality of the foregoing provisions of this Section 9.5, if in connection with any underwritten public offering of securities of the
Company the managing underwriter of such offering requires that the Company’s directors and officers enter into a lock-up agreement containing provisions that are more restrictive than the provisions set forth in the preceding sentence, then
(a) each holder of shares of Stock acquired pursuant to the Plan (regardless of whether such person has complied or complies with the provisions of clause (b) below) shall be bound by, and shall be deemed to have agreed to, the same lock-up terms as
those to which the Company’s directors and officers are required to adhere; and (b) at the request of the Company or such managing underwriter, each such person shall execute and deliver a lock-up agreement in form and substance equivalent to
that which is required to be executed by the Company’s directors and officers. 
  
 9.6 Placement of Legends; Stop Orders; etc. Each share of Stock to be issued pursuant to Awards granted under the Plan may bear a reference to the investment representation made in accordance with Section 9.4
in addition to any other applicable restriction under the Plan, the terms of the Award and, if applicable, to the fact that no registration statement has been filed with the Securities and Exchange Commission in respect to such shares of Stock. All
certificates for shares of Stock or other securities delivered under the Plan shall be subject to such stock transfer orders and other restrictions as the Committee may deem advisable under the rules, regulations, and other requirements of any stock
exchange upon which the Stock is then listed, and any applicable federal or state securities law, and the Committee may cause a legend or legends to be put on any such certificates to make appropriate reference to such restrictions. 
  
 9.7 Tax Withholding. Whenever shares of Stock are issued or to be
issued pursuant to Awards granted under the Plan, the Company shall have the right to require the recipient to remit to the Company an amount sufficient to satisfy federal, state, local or other withholding tax requirements if, when, and to the
extent required by law (whether so required to secure for the Company an otherwise available tax deduction or otherwise) prior to the delivery of any certificate or certificates for such shares. The obligations of the Company under the Plan shall be
conditional on satisfaction of all such withholding obligations and the Company shall, to the extent permitted by law, have the right to deduct any such taxes from any payment of any kind otherwise due to the recipient of an Award. However, in such
cases Participants may elect, subject to the approval of the Committee, to satisfy an applicable withholding requirement, in whole or in part, by having the Company withhold shares to satisfy their tax obligations. Participants may only elect to
have shares withheld having a Market Value on the date the tax is to be determined equal to the minimum statutory total tax which could be imposed on the transaction. All elections shall be irrevocable, made in writing, signed by the Participant,
and shall be subject to any restrictions or limitations that the Committee deems appropriate. 
  

 17 

 10. Reservation of Stock 
  

The Company shall at all times during the term of the Plan and any outstanding Awards granted hereunder reserve or otherwise keep available such number
of shares of Stock as will be sufficient to satisfy the requirements of the Plan (if then in effect) and the Awards and shall pay all fees and expenses necessarily incurred by the Company in connection therewith. 
  
 11. Limitation of Rights in Stock; No Special Service Rights 
  
 A Participant shall not be deemed for any purpose to be a stockholder of the
Company with respect to any of the shares of Stock subject to an Award, unless and until a certificate shall have been issued therefor and delivered to the Participant or his agent. Any Stock to be issued pursuant to Awards granted under the Plan
shall be subject to all restrictions upon the transfer thereof which may be now or hereafter imposed by the certificate of incorporation and the bylaws of the Company. Nothing contained in the Plan or in any Award Agreement shall confer upon any
recipient of an Award any right with respect to the continuation of his or her employment or other association with the Company (or any Affiliate), or interfere in any way with the right of the Company (or any Affiliate), subject to the terms of any
separate employment or consulting agreement or provision of law or certificate of incorporation or by laws to the contrary, at any time to terminate such employment or consulting agreement or to increase or decrease, or otherwise adjust, the other
terms and conditions of the recipient’s employment or other association with the Company and its Affiliates. 
  
 12. Unfunded Status of Plan 
  
 The Plan is intended to constitute an “unfunded” plan for incentive compensation, and the Plan is not intended to constitute a plan subject to
the provisions of the Employee Retirement Income Security Act of 1974, as amended. With respect to any payments not yet made to a Participant by the Company, nothing contained herein shall give any such Participant any rights that are greater than
those of a general creditor of the Company. In its sole discretion, the Committee may authorize the creation of trusts or other arrangements to meet the obligations created under the Plan to deliver Stock or payments with respect to Options, Stock
Appreciation Rights and other Awards hereunder, provided, however, that the existence of such trusts or other arrangements is consistent with the unfunded status of the Plan. 
  
 13. Nonexclusivity of the Plan 
  
 Neither the adoption of the Plan by the Board nor the submission of the Plan to the stockholders of the Company shall be construed as creating any
limitations on the power of the Board to adopt such other incentive arrangements as it may deem desirable, including without limitation, the granting of stock options and restricted stock other than under the Plan, and such arrangements may be
either applicable generally or only in specific cases. 
  
 14. Termination and
Amendment of the Plan 
  
 The Board may at any time terminate
the Plan or make such modifications of the Plan as it shall deem advisable. Unless the Board otherwise expressly provides, no amendment of the Plan shall affect the terms of any Award outstanding on the date of such amendment. In any case, no

  

 18 

 termination or amendment of the Plan may, without the consent of any recipient of an Award granted hereunder, adversely
affect the rights of the recipient under such Award. 
  
 The
Committee may amend the terms of any Award theretofore granted, prospectively or retroactively, provided that the Award as amended is consistent with the terms of the Plan, but no such amendment shall impair the rights of the recipient of such Award
without his or her consent. 
  
 15. Notices and Other Communications

  
 Any notice, demand, request or other communication
hereunder to any party shall be deemed to be sufficient if contained in a written instrument delivered in person or duly sent by first class registered, certified or overnight mail, postage prepaid, or telecopied with a confirmation copy by regular,
certified or overnight mail, addressed or telecopied, as the case may be, (i) if to the recipient of an Award, at his or her residence address last filed with the Company and (ii) if to the Company, at its principal place of business, addressed to
the attention of its Chief Financial Officer, or to such other address or telecopier number or electronic mail address, as the case may be, as the addressee may have designated by notice to the addressor. All such notices, requests, demands and
other communications shall be deemed to have been received: (i) in the case of personal delivery, on the date of such delivery; (ii) in the case of mailing, when received by the addressee; (iii) in the case of facsimile transmission, when confirmed
by facsimile machine report; and (iv) in the case of electronic mail, when directed to an electronic mail address at which the receiving party has consented to receive notice, provided, that such consent is deemed revoked if the sender is
unable to deliver by electronic transmission two consecutive notices and such inability becomes known to the secretary or assistant secretary of the Company or to the transfer agent, or other person responsible for giving notice. 
  
 16. Governing Law 
  
 The Plan and all Award Agreements and actions taken thereunder shall be governed, interpreted and enforced in accordance
with the laws of the state of California, without regard to the conflict of laws principles thereof. 
  

 19Form of 2004 Employee Stock Purchase Plan

 Exhibit 10.3 
  
 FORM OF 
 NETLOGIC MICROSYSTEMS, INC. 
  
 2004 EMPLOYEE
STOCK PURCHASE PLAN 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page

			
	1.	  	PURPOSE	  	1
			
	2.	  	DEFINITIONS	  	1
			
	3.	  	ELIGIBILITY	  	3
			
	4.	  	OFFERING PERIODS	  	3
			
	5.	  	PARTICIPATION	  	3
			
	6.	  	METHOD OF PAYMENT OF CONTRIBUTIONS	  	4
			
	7.	  	GRANT OF OPTION	  	5
			
	8.	  	EXERCISE OF OPTION	  	5
			
	9.	  	DELIVERY	  	6
			
	10.	  	VOLUNTARY WITHDRAWAL; TERMINATION OF EMPLOYMENT	  	6
			
	11.	  	INTEREST	  	6
			
	12.	  	STOCK	  	6
			
	13.	  	ADMINISTRATION	  	7
			
	14.	  	DESIGNATION OF BENEFICIARY	  	7
			
	15.	  	TRANSFERABILITY OF OPTIONS AND SHARES	  	8
			
	16.	  	USE OF FUNDS	  	8
			
	17.	  	REPORTS	  	8
			
	18.	  	ADJUSTMENTS UPON CHANGES IN CAPITALIZATION; ACQUISITIONS	  	8
			
	19.	  	AMENDMENT OR TERMINATION	  	9
			
	20.	  	NOTICES AND OTHER COMMUNICATIONS	  	10
			
	21.	  	CONDITIONS TO ISSUANCE OF SHARES	  	10
			
	22.	  	TERM OF PLAN; EFFECTIVE DATE	  	10

  

 i 

 NETLOGIC MICROSYSTEMS, INC. 
  
 2004 EMPLOYEE STOCK PURCHASE PLAN 
  
 The following constitute the provisions of the 2004 Employee Stock Purchase Plan of NetLogic Microsystems, Inc. 

 
 1. Purpose 
  
 The purpose of the Plan is to provide employees of the Company and its Designated Subsidiaries with an opportunity to
purchase Common Stock of the Company. It is the intention of the Company to have the Plan qualify as an “Employee Stock Purchase Plan” under Section 423 of the Code. The provisions of the Plan shall, accordingly, be construed so as to
extend and limit participation in a manner consistent with the requirements of that section of the Code. 
  
 2. Definitions 
  
 2.1
Acquisition means a merger or consolidation of the Company with and into another person or the sale, transfer, or other disposition of all or substantially all of the Company’s assets to one or more persons (other than any
wholly-owned subsidiary of the Company) in a single transaction or series of related transactions. 
  
 2.2 Board means the Board of Directors of the Company. 
  
 2.3 Code means the Internal Revenue Code of 1986, as amended. 
  
 2.4 Common Stock means the Common Stock, par value $0.001 per
share, of the Company. 
  
 2.5 Company means
NetLogic Microsystems, Inc., a Delaware corporation. 
  
 2.6
Compensation means all regular straight time compensation including commissions but shall not include payments for overtime, shift premium, incentive compensation, incentive payments, bonuses and other irregular or infrequent
compensation or benefits. 
  
 2.7 Continuous Status as an
Employee means the absence of any interruption or termination of service as an Employee. Continuous Status as an Employee shall not be considered interrupted in the case of (i) sick leave; (ii) military leave; (iii) any other leave of
absence approved by the Administrator, provided, that such leave is for a period of not more than 90 days, unless reemployment upon the expiration of such leave is guaranteed by contract or statute, or unless provided otherwise pursuant to
Company policy adopted from time to time; or (iv) in the case of transfers between locations of the Company or between the Company and its Designated Subsidiaries. 
  
 2.8 Contributions means all amounts credited to the account of a participant pursuant to the Plan. 

 

 2.9 Designated Subsidiaries means the Subsidiaries which have been or will be designated by
the Board from time to time in its sole discretion as eligible to participate in the Plan. 
  
 2.10 Employee means any person, including an Officer, who is customarily employed for at least 20 hours per week and more than five months in a calendar year by the Company or one of its Designated
Subsidiaries. 
  
 2.11 Exchange Act means the
Securities Exchange Act of 1934, as amended. 
  
 2.12
Initial Offering Period means the first Offering Period of the Plan. 
  
 2.13 Offering Commencement Date means the first business day of each Offering Period of the Plan. 
  
 2.14 Offering Period means any of the periods, generally of six months duration, as set forth in Section 4. 
  
 2.15 Officer means a person who is an officer of the Company
within the meaning of Section 16 of the Exchange Act and the rules and regulations promulgated thereunder. 
  
 2.16 Offering Termination Date means the last business day of each Offering Period of the Plan. 
  
 2.17 Parent means a parent corporation of the Company, whether
now or hereafter existing, as defined by Section 424(a) of the Code. 
  
 2.18 Plan means this Employee Stock Purchase Plan. 
  
 2.19 Purchase Price means with respect to an Offering Period an amount equal to 85% of the Fair Market Value (as defined in Section 7.2 below) of a Share on the Offering Commencement Date or on the
Offering Termination Date, whichever is lower; provided, however, that (i) if there is an increase in the number of Shares available for issuance under the Plan as a result of a stockholder-approved amendment to the Plan, (ii) all or a
portion of such additional Shares are to be issued with respect to the Offering Period underway at the time of such increase (“Additional Shares”), and (iii) the Fair Market Value of a Share of Common Stock on the date of
such increase (the “Approval Date Fair Market Value”) is higher than the Fair Market Value on the Offering Commencement Date for such Offering Period, then in such instance the Purchase Price with respect to Additional Shares
shall be 85% of the Approval Date Fair Market Value or the Fair Market Value of a Share of Common Stock on the Offering Termination Date, whichever is lower. 
  
 2.20 Securities Act means the Securities Act of 1933, as amended. 
  
 2.21 Share means a share of Common Stock, as adjusted in accordance with Section 18 of the Plan. 

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

 2 

 Other terms are defined in the following sections: 
  

				
	 Term

	  	Section

	 
	 Administrator
	  	13.2	 
	 Fair Market Value
	  	7.2	 
	 IPO Date
	  	4	 
	 New Offering Termination Date
	  	18.2	 
	 Price to Public
	  	5.3	(b)
	 Reserves
	  	18.1	 

  
 3. Eligibility 
  
 3.1 Eligible Persons. Any person who is an Employee as of the
Offering Commencement Date of a given Offering Period shall be eligible to participate in such Offering Period under the Plan, subject to the requirements of Sections 5.1 and 5.3 and the limitations imposed by Section 423(b) of the Code. 

 
 3.2 Certain Restrictions. Any provisions of the Plan to the
contrary notwithstanding, no Employee shall be granted an option under the Plan (i) if, immediately after the grant, such Employee (taking into account stock which would be attributed to such Employee pursuant to Section 424(d) of the Code) would
own capital stock of the Company and/or hold outstanding options to purchase stock possessing five percent or more of the total combined voting power or value of all classes of stock of the Company or of any Parent or Subsidiary of the Company, or
(ii) if such option would permit his or her rights to purchase stock under all employee stock purchase plans (described in Section 423 of the Code) of the Company and its Parent or Subsidiaries to accrue at a rate which exceeds Twenty-Five Thousand
Dollars ($25,000) of the Fair Market Value (as defined in Section 7.2 below) of such stock (determined at the time such option is granted) for each calendar year in which such option is outstanding at any time. 
  
 4. Offering Periods 
  
 Each Offering Period will begin on January 1 or July 1 and end on the next following June 30 or December 31, respectively.
However, the Initial Offering Period shall commence on the beginning of the effective date of the Registration Statement on Form S-1 for the initial public offering of the Company’s Common Stock (the “IPO Date”) and
continue until [                             , 2004]. At any time and from time to time, the
Board may change the duration and/or the frequency of Offering Periods with respect to future Offering Periods or suspend operation of the Plan with respect to Offering Periods not yet commenced. 
  
 5. Participation 
  
 5.1 Subscription Agreement. An eligible Employee may become a participant in the Plan by completing a subscription
agreement on the form provided by the Company and filing it with the Company’s payroll office at least three business days prior to the applicable Offering Commencement Date, unless a later time for filing the subscription agreement is set by
the Board for all eligible Employees with respect to a given Offering Period. The subscription agreement shall set forth the percentage of the participant’s Compensation (subject to Section 6.1 below) to be paid as Contributions pursuant to the
Plan. 
  

 3 

 5.2 Timing of Payroll Deductions. Payroll deductions shall commence on the first payroll following
the Offering Commencement Date and shall end on the last payroll paid on or prior to the Offering Termination Date of the Offering Period to which the subscription agreement is applicable, unless sooner terminated by the participant as provided in
Section 10. 
  
 5.3 Initial Offering Period. Participation
in the Plan for the Initial Offering Period shall be on the same terms and conditions as are set forth in the Plan in respect of Offering Periods generally, except as and to the extent otherwise expressly set forth in this Section 5.3: 

 
 (a) All eligible Employees as of the Offering
Commencement Date of the Initial Offering Period shall automatically participate in the Plan and be granted an option pursuant to the Plan as of such Offering Commencement Date. Eligible Employees shall neither be required to submit a subscription
agreement to participate in the Initial Offering Period nor be permitted to decline to participate in the Initial Offering Period (but any Contributions of a participant for the Initial Offering Period may be withdrawn as provided in Section 10).
However, any participation as to subsequent Offering Periods shall require submission of a subscription agreement and compliance with all other applicable provisions of the Plan. 
  
 (b) For purposes of determining the exercise price of options granted on the Offering Commencement Date of
the Initial Offering Period, the Fair Market Value of a Share as of such Offering Commencement Date shall be the “Price to Public” as set forth in the final prospectus filed with the Securities and Exchange Commission
pursuant to Rule 424 under the Securities Act. 
  
 (c) At any time within          business days after the effective date of the Company’s Registration Statement on Form S-8 with respect to the Plan, a participant in the Plan for the
Initial Offering Period may deliver to the Company’s accounting department by payment in cash or personal check amounts for credit as Contributions under the Plan with respect to the Initial Offering Period. Such payment must be accompanied by
a completed subscription payment form which has been approved by the Company or its designee, such as the Administrator. 
  
 (d) The total Contributions credited to a participant’s account under the Plan for the Initial Offering Period pursuant to subsection
(c) above, when combined with any payments made into such participant’s account by payroll deductions, shall not exceed 10 percent of the participant’s Compensation for the Initial Offering Period. Any excess shall be promptly refunded to
the participant following the Offering Termination Date of the Initial Offering Period. 
  
 5.4 Tax Withholding. Each participant who purchases shares of Common Stock under the Plan shall thereby be deemed to have agreed that the Company or the Subsidiary that employs the participant shall be entitled
to withhold, from any other amounts that may be payable to the participant at or around the time of the purchase, such federal, state, local and foreign income, employment and other taxes which may be required to be withheld under applicable laws.
In lieu of such withholding, the Company or such Subsidiary may require the participant to remit such taxes to the Company or such Subsidiary as a condition of the purchase. 
  
 6. Method of Payment of Contributions 
  
 6.1 Election. A participant shall elect to have payroll deductions made on each payday during the Offering Period in an amount not less than one
percent and not more than 10 percent (or such other percentage as the Board may establish from time to time before an Offering 
  

 4 

 Commencement Date) of such participant’s Compensation on each payday during the Offering Period. All payroll
deductions made by a participant shall be credited to his or her account under the Plan. A participant may not make any additional payments into such account. 
  

6.2 Discontinuation; Changes. A participant may discontinue his or her participation in the Plan as provided in Section 10. In addition, if the
Board has so announced to Employees at least five days prior to the scheduled beginning of the next Offering Period to be affected by the Board’s determination, a participant may, on no more than [two] occasions only during each Offering
Period, change the rate of his or her Contributions with respect to the Offering Period by completing and filing with the Company a new subscription agreement authorizing a change in the payroll deduction rate. If otherwise permitted, no such change
shall enable a participant to resume Contributions other than as of an Offering Commencement Date, following a withdrawal of Contributions during an Offering Period pursuant to Section 10. Any such change in rate shall be effective as of the first
payroll period following the date of filing of the new subscription agreement, if the agreement is filed at least 10 business days prior to such period and, if not, as of the second following payroll period. 
  
 6.3 Reductions. Notwithstanding the foregoing, to the extent necessary
to comply with Section 423(b)(8) of the Code and Section 3.2 herein, a participant’s payroll deductions may be decreased during any Offering Period scheduled to end during the current calendar year to 0%. Payroll deductions reduced to 0% in
compliance with this Section 6.3 shall re-commence automatically at the rate provided in such participant’s subscription agreement at the beginning of the first Offering Period which is scheduled to end in the following calendar year, unless
terminated by the participant as provided in Section 10. 
  
 7. Grant of Option

  
 7.1 Number of Shares. On the Offering Commencement
Date of each Offering Period, each eligible Employee participating in such Offering Period shall be granted an option to purchase on the Offering Termination Date of that Offering Period a number of Shares determined by dividing such Employee’s
Contributions accumulated prior to such Offering Termination Date and retained in the participant’s account as of the Offering Termination Date by the applicable Purchase Price. However, the maximum number of Shares an Employee may purchase
during each Offering Period shall be [            ] shares, or such other maximum amount determined from time to time by the Board prior to the applicable Offering Period, and
provided further that such purchase shall be subject to the limitations set forth in Sections 3.2 and 12. 
  
 7.2 Fair Market Value. The fair market value of the Company’s Common Stock on a given date (the “Fair Market Value”)
shall be (i) the closing sales price on the NASDAQ National Market, or any national securities exchange or other established market on which the Stock is then listed (or, in the event that the Common Stock is not traded on such date, on the
immediately preceding trading date) or (ii) determined by the Board in its discretion based on the closing sales price of the Common Stock for such date (or, in the event that the Common Stock is not traded on such date, on the immediately preceding
trading date), as reported by NASDAQ or other such exchange, or (iii) if the closing sales price is not reported, the mean of the bid and asked prices per share of the Common Stock as reported by NASDAQ or other such exchange. 
  

 5 

 8. Exercise of Option 
  
 Unless a participant withdraws from the Plan as provided in Section 10, his or her option for the purchase of Shares will be exercised automatically on
the Offering Termination Date of an Offering Period, and the maximum number of full Shares subject to the option will be purchased at the applicable Purchase Price with the accumulated Contributions in his or her account. No fractional Shares shall
be issued. The Shares purchased upon exercise of an option hereunder shall be deemed to be transferred to the participant on the Offering Termination Date. During his or her lifetime, a participant’s option to purchase Shares hereunder is
exercisable only by him or her. 
  
 9. Delivery 
  
 As promptly as practicable after each Offering Termination Date of each
Offering Period, the Company shall arrange the delivery to or for the benefit of each participant, as appropriate, of a certificate representing the Shares purchased upon exercise of his or her option. Any payroll deductions accumulated in a
participant’s account which are not sufficient to purchase a full Share shall be retained in the participant’s account for the subsequent Offering Period, subject to earlier withdrawal by the participant as provided in Section 10 below.
Any other amounts left over in a participant’s account after an Offering Termination Date shall be returned to the participant. 
  
 10. Voluntary Withdrawal; Termination of Employment 
  
 10.1 Withdrawal of Contributions. A participant may withdraw all but not less than all of the Contributions credited to his or her account under
the Plan at any time prior to each Offering Termination Date by giving written notice to the Company. All of the participant’s Contributions credited to his or her account will be paid to him or her promptly after receipt of his or her notice
of withdrawal and his or her option for the current Offering Period will be automatically terminated, and no further Contributions for the purchase of Shares will be made during the Offering Period. 
  
 10.2 Termination of Employment. Upon termination of the
participant’s Continuous Status as an Employee prior to the Offering Termination Date of an Offering Period for any reason, including retirement or death, the Contributions credited to his or her account will be returned to him or her or, in
the case of his or her death, to the person or persons entitled thereto under Section 14, and his or her option will be automatically terminated. 
  
 10.3 Automatic Withdrawal from Plan. In the event an Employee fails to remain in Continuous Status as an Employee of the Company for at least 20
hours per week during the Offering Period in which the Employee is a participant, he or she will be deemed to have elected to withdraw from the Plan and the Contributions credited to his or her account will be returned to him or her and his or her
option terminated. 
  
 10.4 Effect of Withdrawal from Plan.
A participant’s withdrawal during an Offering Period will not have any effect upon his or her eligibility to participate in a succeeding Offering Period or in any similar plan which may hereafter be adopted by the Company. 
  
 11. Interest 
  
 No interest shall accrue on the Contributions of a participant in the Plan. 
  

 6 

 12. Stock 
  
 12.1 Maximum Number of Shares. Subject to adjustment as provided in Section 18, the maximum number of Shares which shall be made available for sale
under the Plan shall be [                        ] Shares[, plus an annual increase to be added on the first day of
the Company’s fiscal year beginning in 2005 and on each anniversary of that date thereafter equal to the least of (i) [        ] Shares, (ii)
[                        ] percent of the outstanding Shares on the IPO Date, and (iii) such other amount as the Board may
specify prior to the date such annual increase is to take effect]. [Notwithstanding the foregoing, and subject to adjustment in accordance with Section 18 no more than an aggregate of
[                        ] Shares may be issued pursuant to this Plan.] If the Board determines that, on a given
Offering Termination Date, the number of shares with respect to which options are to be exercised may exceed (i) the number of shares of Common Stock that were available for sale under the Plan on the Offering Commencement Date, or (ii) the number
of shares available for sale under the Plan on such Offering Termination Date, the Board may in its sole discretion provide that the Company shall make a pro rata allocation of the Shares available for purchase on such Offering Commencement Date or
Offering Termination Date, as applicable, in as uniform a manner as shall be practicable and as it shall determine in its sole discretion to be equitable among all participants exercising options to purchase Common Stock on such Offering Termination
Date. The Company may make pro rata allocation of the Shares available on the Offering Commencement Date of the applicable Offering Period pursuant to the preceding sentence, notwithstanding any authorization of additional Shares for issuance under
the Plan by the Company’s stockholders subsequent to such Offering Commencement Date. 
  
 12.2 No Interest or Voting Right. The participant shall have no interest or voting right in Shares covered by his or her option until such option has been exercised. 
  
 12.3 Registration of Shares. Shares to be delivered to a participant
under the Plan will be registered in the name of the participant or in the name of the participant and his or her spouse, as directed by the participant. 
  
 13. Administration 
  
 13.1 Board Authority. The Board, or a committee named by the Board, shall supervise and administer the Plan and shall have full power to adopt,
amend and rescind any rules deemed desirable and appropriate for the administration of the Plan and not inconsistent with the Plan, to construe and interpret the Plan, and to make all other determinations necessary or advisable for the
administration of the Plan. The Board’s determinations made in good faith on matters referred to in this Plan shall be final, binding and conclusive on all persons having or claiming any interest under this Plan. 
  
 13.2 Designation of Administrator. The Board may from time to time
designate an employee or retain a third party to address routine administrative matters. Any employee or third party so designated may be referred to herein as the “Administrator.” 
  
 14. Designation of Beneficiary 
  
 14.1 Designation. A participant may file a written designation of a
beneficiary who is to receive any Shares and cash, if any, from the participant’s account under the Plan in the event of such participant’s death subsequent to the end of an Offering Period but prior to delivery to him or her of

  

 7 

 such Shares and cash. Any such beneficiary shall also be entitled to receive any cash from the participant’s account
under the Plan in the event of such participant’s death prior to the Offering Termination Date of an Offering Period. 
  
 14.2 Changes to Designation; Lack of Designation. Such designation of beneficiary may be changed by the participant at any time by written notice.
In the event of the death of a participant and in the absence of a beneficiary validly designated under the Plan who is living at the time of such participant’s death, the Company shall deliver such Shares and/or cash to the executor or
administrator of the estate of the participant, or if no such executor or administrator has been appointed (to the knowledge of the Company), the Company, in its discretion, may deliver such Shares and/or cash to the spouse or to any one or more
dependents or relatives of the participant, or if no spouse, dependent or relative is known to the Company, then to such other person as the Company may designate. 
  
 15. Transferability of Options and Shares 
  

15.1 Restrictions on Transfer. Neither Contributions credited to a participant’s account nor any rights with regard to the exercise of an
option or to receive Shares under the Plan may be assigned, transferred, pledged or otherwise disposed of in any way (other than by will, the laws of descent and distribution, or as provided in Section 14) by the participant. Any such attempt at
assignment, transfer, pledge or other disposition shall be without effect, except that the Company may treat such act as an election to withdraw funds in accordance with Section 10. In addition, if the Board has so announced to Employees at least
five days prior to the scheduled beginning of the next Offering Period to be affected by the Board’s determination, any Shares acquired on the Offering Termination Date of such Offering Period may be subject to restrictions specified by the
Board on the transfer of such Shares. 
  
 15.2 Notice of
Transfer. Any participant selling or transferring any or all of his or her Shares purchased pursuant to the Plan must provide written notice of such sale or transfer to the Company within five business days after the date of sale or transfer.
Such notice to the Company shall include the gross sales price, if any, the Offering Period during which the Shares being sold were purchased by the participant, the number of Shares being sold or transferred and the date of sale or transfer.

  
 16. Use of Funds 
  
 All Contributions received or held by the Company under the Plan may be used
by the Company for any corporate purpose, and the Company shall not be obligated to segregate such Contributions from its other assets. 
  
 17. Reports 
  
 Individual accounts will be maintained for each participant in the Plan. Statements of account will be given to participating Employees at least annually,
which statements will set forth the amounts of Contributions, the per Share Purchase Price, the number of Shares purchased and the remaining cash balance, if any. 
  

 8 

 18. Adjustments Upon Changes in Capitalization; Acquisitions 
  
 18.1 Adjustment. Subject to any required action by the stockholders
of the Company, the number of shares covered by each option under the Plan which has not yet been exercised and the number of Shares which have been authorized for issuance under the Plan but have not yet been placed under option (collectively, the
“Reserves”), as well as the maximum number of shares of Common Stock which may be purchased by a participant in an Offering Period, the number of shares of Common Stock set forth in Section 12.1 above, and the price per Share
of Common Stock covered by each option under the Plan which has not yet been exercised, shall be proportionately adjusted for any increase or decrease in the number of the Company’s issued Shares resulting from a stock split, reverse stock
split, stock dividend, combination or reclassification of the Common Stock (including any such change in the number of Shares of Common Stock effected in connection with a change in domicile of the Company), or any other increase or decrease in the
number of Shares effected without receipt of consideration by the Company; provided however, that conversion of any convertible securities of the Company shall not be deemed to have been “effected without receipt of consideration.”
Such adjustment shall be made by the Board, whose determination in that respect shall be final, binding and conclusive. 
  
 18.2 Acquisitions. In the event of a dissolution or liquidation of the Company, the Offering Period then in progress will terminate immediately
prior to the consummation of such action, unless otherwise provided by the Board. In the event of an Acquisition, each option outstanding under the Plan shall be assumed or an equivalent option shall be substituted by the successor corporation or a
parent or Subsidiary of such successor corporation. In the event that the successor corporation refuses to assume or substitute for outstanding options, the Offering Period then in progress shall be shortened and a new Offering Termination Date
shall be set (the “New Offering Termination Date”), as of which date the Offering Period then in progress will terminate. The New Offering Termination Date shall be on or before the date of consummation of the transaction and
the Board shall notify each participant in writing, at least ten (10) days prior to the New Offering Termination Date, that the Offering Termination Date for his or her option has been changed to the New Offering Termination Date and that his or her
option will be exercised automatically on the New Offering Termination Date, unless prior to such date he or she has withdrawn from the Offering Period as provided in Section 10. For purposes of this Section 18, an option granted under the Plan
shall be deemed to be assumed, without limitation, if, at the time of issuance of the stock or other consideration upon an Acquisition, each holder of an option under the Plan would be entitled to receive upon exercise of the option the same number
and kind of shares of stock or the same amount of property, cash or securities as such holder would have been entitled to receive upon the occurrence of the transaction if the holder had been, immediately prior to the transaction, the holder of the
number of Shares of Common Stock covered by the option at such time (after giving effect to any adjustments in the number of Shares covered by the option as provided for in this Section 18); provided, however, that if the consideration
received in the transaction is not solely common stock of the successor corporation or its parent (as defined in Section 424(e) of the Code), the Board may, with the consent of the successor corporation, provide for the consideration to be received
upon exercise of the option to be solely common stock of the successor corporation or its parent equal in Fair Market Value to the per Share consideration received by holders of Common Stock in the transaction. 
  
 18.3 Other Adjustments. The Board may, if it so determines in the
exercise of its sole discretion, also make provision for adjusting the Reserves, as well as the price per Share of Common Stock covered by each outstanding option, in the event that the Company effects one or more 
  

 9 

 reorganizations, recapitalizations, rights offerings or other increases or reductions of Shares of its outstanding Common
Stock, and in the event of the Company’s being consolidated with or merged into any other corporation. 
  
 2. Amendment or Termination 
  
 19.1 Amendment or Termination by the Board. The Board may at any time and for any reason terminate or amend the Plan. Except as provided in Section 18, no such termination of the Plan may affect options previously granted, provided
that the Plan or an Offering Period may be terminated by the Board on an Offering Termination Date or by the Board’s setting a new Offering Termination Date with respect to an Offering Period then in progress if the Board determines that
termination of the Plan and/or the Offering Period is in the best interests of the Company and its stockholders or if continuation of the Plan and/or the Offering Period would cause the Company to incur adverse accounting charges as a result of the
Plan. Except as provided in Section 18 and in this Section 19, no amendment to the Plan shall make any change in any option previously granted which adversely affects the rights of any participant. 
  
 19.2 Other Powers of the Board. Without stockholder consent and
without regard to whether any participant rights may be considered to have been adversely affected, the Board (or its committee) shall be entitled to change the Offering Periods, limit the frequency and/or number of changes in the amount withheld
during an Offering Period, establish the exchange ratio applicable to amounts withheld in a currency other than U.S. dollars, permit payroll withholding in excess of the amount designated by a participant in order to adjust for delays or mistakes in
the Company’s processing of properly completed withholding elections, establish reasonable waiting and adjustment periods and/or accounting and crediting procedures to ensure that amounts applied toward the purchase of Common Stock for each
participant properly correspond with amounts withheld from the participant’s Compensation, and establish such other limitations or procedures as the Board (or its committee) determines in its sole discretion advisable which are consistent with
the Plan. 
  
 20. Notices and Other Communications 
  
 Any notice, demand, request or other communication hereunder to any party
shall be deemed to be sufficient if contained in a written instrument delivered in person or duly sent by first class registered, certified or overnight mail, postage prepaid, or telecopied with a confirmation copy by regular, certified or overnight
mail, addressed or telecopied, as the case may be, (i) if to the recipient of an Award, at his or her residence address last filed with the Company and (ii) if to the Company, at its principal place of business, addressed to the attention of its
Treasurer, or to such other address or telecopier number or electronic mail address, as the case may be, as the addressee may have designated by notice to the addressor. All such notices, requests, demands and other communications shall be deemed to
have been received: (i) in the case of personal delivery, on the date of such delivery; (ii) in the case of mailing, when received by the addressee; (iii) in the case of facsimile transmission, when confirmed by facsimile machine report; and (iv) in
the case of electronic mail, when directed to an electronic mail address at which the receiving party has consented to receive notice, provided, that such consent is deemed revoked if the sender is unable to deliver by electronic transmission
two consecutive notices and such inability becomes known to the secretary or assistant secretary of the corporation or to the transfer agent, or other person responsible for giving notice. 
  

 10 

 21. Conditions to Issuance of Shares 
  
 21.1 Compliance with Securities Laws. Shares shall not be issued with respect to an option unless the exercise of
such option and the issuance and delivery of such Shares pursuant thereto shall comply with all applicable provisions of law, domestic or foreign, including, without limitation, the Securities Act, the Exchange Act, the rules and regulations
promulgated thereunder, applicable state securities laws and the requirements of any stock exchange upon which the Shares may then be listed, and shall be further subject to the approval of counsel for the Company with respect to such compliance.

  
 21.2 Purchaser Representation. As a condition to the
exercise of an option, the Company may require the person exercising such option to represent and warrant at the time of any such exercise that the Shares are being purchased only for investment and without any present intention to sell or
distribute such Shares if, in the opinion of counsel for the Company, such a representation is required by any of the aforementioned applicable provisions of law. 
  
 22. Term of Plan; Effective Date 
  
 The Plan shall become effective upon the IPO Date and shall continue in effect for a term of 10 years from that date unless sooner terminated under
Section 19. 
  
 23. Automatic Transfer to Low Price Offering Period

  
 If the Fair Market Value of the Common Stock on any
Offering Termination Date of an Offering Period is lower than the Fair Market Value of the Common Stock on the Offering Commencement Date of such Offering Period, then all participants in such Offering Period shall be automatically withdrawn from
such Offering Period immediately after the exercise of their option on such Offering Termination Date and automatically re-enrolled in the immediately following Offering Period as of the first day thereof; provided that such withdrawal and
re-enrollment shall not be affected for any participant of that would be subject to a violation of Section 18(b) of the Exchange Act as a result thereof. 
  

 11 

 SAMPLE 
  
 NETLOGIC MICROSYSTEMS, INC. 
  
 2004 EMPLOYEE STOCK PURCHASE PLAN 
  
 SUBSCRIPTION AGREEMENT 
  
 New Election              
  
 Change of Election              
  
 1. I,
                        , hereby elect to participate in the NetLogic Microsystems, Inc. 2004 Employee Stock Purchase Plan
(the “Plan”) for the Offering Period                      to
                    , and subscribe to purchase shares of the Company’s Common Stock in accordance with this Subscription Agreement and
the Plan. 
  
 2. I elect to have Contributions in the amount of
            % of my Compensation, as those terms are defined in the Plan, applied to this purchase. I understand that this amount must not be less than 1% and not more than 10% of my
Compensation during the Offering Period. (Please note that no fractional percentages are permitted). 
  
 3. I hereby authorize payroll deductions from each paycheck during the Offering Period at the rate stated in Item 2 of this Subscription Agreement. I
understand that all payroll deductions made by me shall be credited to my account under the Plan and that I may not make any additional payments into such account. I understand that all payments made by me shall be accumulated, without interest or
earnings, for the purchase of shares of Common Stock at the applicable purchase price determined in accordance with the Plan. I further understand that, except as otherwise set forth in the Plan, shares will be purchased for me automatically on the
Offering Termination Date of each Offering Period unless I otherwise withdraw from the Plan by giving written notice to the Company for such purpose. 
  
 4. I understand that I may discontinue at any time prior to the Offering Termination Date my participation in the Plan as provided in Section 10 of the
Plan. I acknowledge that, unless I discontinue my participation in the Plan as provided in Section 10 of the Plan, my election will continue to be effective for each successive Offering Period. 
  
 5. I have received a copy of the complete NetLogic Microsystems, Inc. 2004
Employee Stock Purchase Plan. I understand that my participation in the Plan is in all respects subject to the terms of the Plan. 
  
 6. Shares purchased for me under the Plan should be issued in the name(s) of (name of employee or employee and spouse only): 
  
                                       
                    
  
                                       
                    

 7. In the event of my death, I hereby designate the following as my beneficiary(ies) to receive all
payments and shares due to me under the Plan: 
  

									
	 NAME: (Please print)
	 	 	 	

	 	 	 	 	 (First)
                    (Middle)
                    (Last)

			
	
	 	 	 	

	 (Relationship)
	 	 	 	 (Address)

			
	 	 	 	 	

  
 8. I understand that
if I dispose of any shares received by me pursuant to the Plan within two years after the Offering Commencement Date (the first day of the Offering Period during which I purchased such shares) or within one year after the Offering Termination Date,
I will be treated for federal income tax purposes as having received ordinary compensation income at the time of such disposition in an amount equal to the excess of the fair market value of the shares on the Offering Termination Date over the price
which I paid for the shares, regardless of whether I disposed of the shares at a price less than their fair market value at the Offering Termination Date. The remainder of the gain or loss, if any, recognized on such disposition will be treated as
capital gain or loss. 
  
 I hereby agree to notify the Company in
writing within 30 days after the date of any such disposition, and I will make adequate provision for federal, state or other tax withholding obligations, if any, which arise upon the disposition of the Common Stock. The Company may, but will not be
obligated to, withhold from my compensation the amount necessary to meet any applicable withholding obligation including any withholding necessary to make available to the Company any tax deductions or benefits attributable to the sale or early
disposition of Common Stock by me. 
  
 9. If I dispose of such
shares at any time after expiration of the two-year and one-year holding periods, I understand that I will be treated for federal income tax purposes as having received compensation income only to the extent of an amount equal to the lesser of (1)
the excess of the fair market value of the shares at the time of such disposition over the purchase price which I paid for the shares under the option, or (2) 15% of the fair market value of the shares on the Offering Commencement Date. The
remainder of the gain or loss, if any, recognized on such disposition will be treated as capital gain or loss. 
  
 I understand that this tax summary is only a summary and is subject to change. I further understand that I should consult a tax advisor concerning certain
tax implications of the purchase and sale of stock under the Plan. 
  
 10. I hereby agree to be bound by the terms of the Plan. The effectiveness of this Subscription Agreement is dependent upon my eligibility to participate in the Plan. 
  
 SIGNATURE:
                                       
                       
  
 SOCIAL SECURITY #:
                                       
        
  
 DATE:
                                       
                                   
  

 2 

 SAMPLE 
  
 NETLOGIC MICROSYSTEMS, INC. 
  
 2004 EMPLOYEE STOCK PURCHASE PLAN 
  
 EXERCISE AGREEMENT FOR THE INITIAL OFFERING PERIOD 
  
 1. I have received a copy of the complete NetLogic Microsystems, Inc. 2004 Employee Stock Purchase Plan (the “Plan”). I understand
that my participation in the Plan is in all respects subject to the terms of the Plan. 
  
 2. Shares purchased for me under the Plan should be issued in the name(s) of (name of employee or employee and spouse only): 
  
                                       
                    
  
                                       
                    
  
 3. In the event of my death, I hereby designate the following as my beneficiary(ies) to receive all shares due to me under the Plan: 
  

									
				
	NAME: (Please print)	 	 	 	 	 	 
	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 (First)
                        (Middle)
                        (Last)

				
	
	 	 	 	 	 	

	 (Relationship)
	 	 	 	 	 	 (Address)

				
	 	 	 	 	 	 	

  
 4. I understand that
if I dispose of any shares received by me pursuant to the Plan within two years after the Offering Commencement Date (the first day of the Offering Period during which I purchased such shares) or within one year after the Offering Termination Date,
I will be treated for federal income tax purposes as having received ordinary compensation income at the time of such disposition in an amount equal to the excess of the fair market value of the shares on the Offering Termination Date over the price
which I paid for the shares, regardless of whether I disposed of the shares at a price less than their fair market value at the Offering Termination Date. The remainder of the gain or loss, if any, recognized on such disposition will be treated as
capital gain or loss. 
  
 I hereby agree to notify the Company in
writing within 30 days after the date of any such disposition, and I will make adequate provision for federal, state or other tax withholding obligations, if any, which arise upon the disposition of the Common Stock. The Company may, but will not be
obligated to, withhold from my compensation the amount necessary to meet any applicable withholding obligation including any withholding necessary to make available to the Company any tax deductions or benefits attributable to the sale or early
disposition of Common Stock by me. 
  
 5. If I dispose of such
shares at any time after expiration of the two-year and one-year holding periods, I understand that I will be treated for federal income tax purposes as having received 

 compensation income only to the extent of an amount equal to the lesser of (1) the excess of the fair market value of the
shares at the time of such disposition over the purchase price which I paid for the shares under the option, or (2) 15% of the fair market value of the shares on the Offering Commencement Date. The remainder of the gain or loss, if any, recognized
on such disposition will be treated as capital gain or loss. 
  
 I
understand that this tax summary is only a summary and is subject to change. I further understand that I should consult a tax advisor concerning certain tax implications of the purchase and sale of stock under the Plan. 
  
 6. I hereby agree to be bound by the terms of the Plan. The effectiveness of
this Subscription Agreement is dependent upon my eligibility to participate in the Plan. 
  
 SIGNATURE:
                                       
                       
  
 SOCIAL SECURITY #:
                                       
        
  
 DATE:
                                       
                                   
  

 2 

 SAMPLE 
  
 NETLOGIC MICROSYSTEMS, INC. 
  
 2004 EMPLOYEE STOCK PURCHASE PLAN 
  
 NOTICE OF WITHDRAWAL 
  
 I,
                        , hereby elect to withdraw my participation in the NetLogic Microsystems, Inc. 2003 Employee Stock
Purchase Plan (the “Plan”) for the Offering Period that began on                         , 2004.
This withdrawal covers all Contributions credited to my account and is effective on the date designated below. 
  
 I understand that all Contributions credited to my account will be paid to me within 10 business days of receipt by the Company of this Notice of
Withdrawal and that my option for the current period will automatically terminate, and that no further Contributions for the purchase of shares can be made by me during the Offering Period. 
  
 The undersigned further understands and agrees that he or she shall be
eligible to participate in succeeding Offering Periods only by delivering to the Company a new Subscription Agreement. 
  

									
					
	Dated:	 	 	 	 	 	 	 	 
	 	 	
	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 Signature of Employee

					
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 Social Security Number

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