Document:

Prepared by R.R. Donnelley Financial -- 2000 Equity Incentive Plan

 Exhibit 10.33 
  
 APPLIED MICRO CIRCUITS CORPORATION 
 2000 EQUITY INCENTIVE PLAN 
  
 1.    PURPOSES. 
  
 (a)    Eligible Stock Award Recipients.    The persons eligible to receive Stock Awards are the Employees, Directors and Consultants of the Company
and its Affiliates. 
  
 (b)    Available Stock
Awards.    The purpose of the Plan is to provide a means by which eligible recipients of Stock Awards may be given an opportunity to benefit from increases in value of the Common Stock through the granting of the following
Stock Awards: (i) Nonstatutory Stock Options, (ii) stock bonuses and (iii) rights to acquire restricted stock. 
  
 (c)    General Purpose.    The Company, by means of the Plan, seeks to retain the services of the group of persons eligible to receive Stock Awards, to secure and retain the
services of new members of this group and to provide incentives for such persons to exert maximum efforts for the success of the Company and its Affiliates. 
  
 2.    DEFINITIONS. 
  
 (a)    “Affiliate” means any parent corporation or subsidiary corporation of the Company, whether now or hereafter existing, as those terms are defined in Sections 424(e) and (f),
respectively, of the Code. 
  
 (b)    “Board”
means the Board of Directors of the Company. 
  
 (c)    “Code” means the Internal Revenue Code of 1986, as amended. 
  
 (d)    “Committee” means a committee of one or more members of the Board appointed by the Board in accordance with subsection 3(c). 

 
 (e)    “Common Stock” means the common stock of the Company.

  
 (f)    “Company” means Applied Micro Circuits
Corporation, a Delaware corporation. 
  
 (g)    “Consultant” means any person, including an advisor, (i) engaged by the Company or an Affiliate to render consulting or advisory services and who is compensated for such
services or (ii) who is a member of the Board of Directors of an Affiliate. However, the term “Consultant” shall not include either Directors who are not compensated by the Company for their services as Directors or Directors who are
merely paid a director’s fee by the Company for their services as Directors. 
  
 (h)    “Continuous Service” means that the Participant’s service with the Company or an Affiliate, whether as an Employee, Director or Consultant, is not interrupted or
terminated. The Participant’s Continuous Service shall not be deemed to have terminated merely because of a change in the capacity in which the Participant renders service to the Company or an Affiliate as an Employee, Consultant or Director or
a change in the entity for which the Participant renders such service, provided that there is no interruption or termination of the Participant’s Continuous Service. For example, a change in status from an Employee of the Company to a
Consultant of an Affiliate or a Director will not constitute an interruption of Continuous Service. The Board or the chief executive officer of the Company, in that party’s sole discretion, may determine whether

 

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Continuous Service shall be considered interrupted in the case of any leave of absence approved by that party, including sick leave, military leave or any other personal leave. 

 
 (i)    “Covered Employee” means the chief executive officer
and the four (4) other highest compensated officers of the Company for whom total compensation is required to be reported to shareholders under the Exchange Act, as determined for purposes of Section 162(m) of the Code. 
  
 (j)    “Director” means a member of the Board of Directors of the
Company. 
  
 (k)    “Disability” means the
permanent and total disability of a person within the meaning of Section 22(e)(3) of the Code. 
  
 (l)    “Employee” means any person employed by the Company or an Affiliate. Mere service as a Director or payment of a director’s fee by the Company or an Affiliate shall not be
sufficient to constitute “employment” by the Company or an Affiliate. 
  
 (m)    “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
  
 (n)    “Executive Officer” means any person who has been expressly designated an executive officer of the Company by the Board, without regard to
whether such person meets the criteria for an executive officer as set forth in Rule 405 under the Securities Act. 
  
 (o)    “Fair Market Value” means, as of any date, the value of the Common Stock determined as follows: 
  
 (i)    If the Common Stock is listed on any established stock exchange or traded on the Nasdaq National Market or the Nasdaq
SmallCap Market, the Fair Market Value of a share of Common Stock shall be the closing sales price for such stock (or the closing bid, if no sales were reported) as quoted on such exchange or market (or the exchange or market with the greatest
volume of trading in the Common Stock) on the last market trading day prior to the date of grant, as reported in The Wall Street Journal or such other source as the Board deems reliable. 
  
 (ii)    In the absence of such markets for the Common Stock, the Fair Market Value shall be determined in good faith by the
Board. 
  
 (p)    “Non-Employee Director” means a
Director who either (i) is not a current Employee or Officer of the Company or its parent or a subsidiary, does not receive compensation (directly or indirectly) from the Company or its parent or a subsidiary for services rendered as a consultant or
in any capacity other than as a Director (except for an amount as to which disclosure would not be required under Item 404(a) of Regulation S-K promulgated pursuant to the Securities Act (“Regulation S-K”)), does not possess an interest in
any other transaction as to which disclosure would be required under Item 404(a) of Regulation S-K and is not engaged in a business relationship as to which disclosure would be required under Item 404(b) of Regulation  S-K; or (ii) is otherwise
considered a “non-employee director” for purposes of Rule 16b-3. 
  
 (q)    “Nonstatutory Stock Option” means an Option not intended to qualify as an “incentive stock option” within the meaning of Section 422 of the Code and the regulations
promulgated thereunder. 
  
 (r)    “Officer” means
a person who possesses the authority of an “officer” as that term is used in Rule 4460(i)(1)(A) of the Rules of the National Association of Securities Dealers, Inc. For purposes of the Plan, a person in the position of “Vice
President” or higher shall be classified as an “Officer” unless the Board or
 
 

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Committee expressly finds that such person does not possess the authority of an “officer” as that term is used in Rule 4460(i)(1)(A) of the Rules of the National Association of
Securities Dealers, Inc. 
  
 (s)    “Option” means
a Nonstatutory Stock Option granted pursuant to the Plan. 
  
 (t)    “Option Agreement” means an agreement (including an electronic agreement) between the Company and an Optionholder evidencing the terms and conditions of an individual Option
grant. Each Option Agreement shall be subject to the terms and conditions of the Plan. 
  
 (u)    “Optionholder” means a person to whom an Option is granted pursuant to the Plan or, if applicable, such other person who holds an outstanding Option. 
  
 (v)    “Participant” means a person to whom a Stock Award is granted
pursuant to the Plan or, if applicable, such other person who holds an outstanding Stock Award. 
  
 (w)    “Plan” means this Applied Micro Circuits Corporation 2000 Equity Incentive Plan. 
  
 (x)    “Retirement” means the termination of a Participant’s Continuous Service by retirement as
determined in accordance with the Company’s then current employment policies and guidelines. 
  
 (y)    “Rule 16b-3” means Rule 16b-3 promulgated under the Exchange Act or any successor to Rule 16b-3, as in effect from time to time. 
  
 (z)    “Securities Act” means the Securities Act of 1933, as amended.

  
 (aa)    “Stock Award” means any right granted
under the Plan, including an Option, a stock bonus and a right to acquire restricted stock. 
  
 (bb)    “Stock Award Agreement” means an agreement (including an electronic agreement) between the Company and a holder of a Stock Award evidencing the terms and conditions of an
individual Stock Award grant. Each Stock Award Agreement shall be subject to the terms and conditions of the Plan. 
  
 (cc)    “Ten Percent Shareholder” means a person who owns (or is deemed to own pursuant to Section 424(d) of the Code) stock possessing more than ten percent (10%) of the
total combined voting power of all classes of stock of the Company or of any of its Affiliates. 
  
 (dd)    “Total Service” means the sum of all of a Participant’s periods of Continuous Service. 
  
 3.    ADMINISTRATION. 
  
 (a)    Administration by Board.    The Board shall administer the Plan unless and until the Board delegates administration to a Committee, as
provided in subsection 3(c). 
  
 (b)    Powers of
Board.    The Board shall have the power, subject to, and within the limitations of, the express provisions of the Plan: 
  
 (i)    To determine from time to time which of the persons eligible under the Plan shall be granted Stock Awards; when and how each Stock Award shall be granted; what type or
combination of types of Stock Award shall be granted; the provisions of each Stock Award granted (which need not be identical), including the time or times when a person shall be permitted to receive Common Stock pursuant to a Stock

 

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Award; and the number of shares of Common Stock with respect to which a Stock Award shall be granted to each such person. 
  
 (ii)    To construe and interpret the Plan and Stock Awards granted under it, and to establish, amend and revoke rules and
regulations for its administration. The Board, in the exercise of this power, may correct any defect, omission or inconsistency in the Plan or in any Stock Award Agreement, in a manner and to the extent it shall deem necessary or expedient to make
the Plan fully effective. 
  
 (iii)    To amend the Plan or a Stock Award
as provided in Section 12. 
  
 (iv)    Generally, to exercise such powers
and to perform such acts as the Board deems necessary or expedient to promote the best interests of the Company which are not in conflict with the provisions of the Plan. 
  
 (c)    Delegation to Committee. 
  
 (i)    General.    The Board may delegate administration of the Plan to a Committee or Committees of
one (1) or more members of the Board, and the term “Committee” shall apply to any person or persons to whom such authority has been delegated. If administration is delegated to a Committee, the Committee shall have, in connection with the
administration of the Plan, the powers theretofore possessed by the Board, including the power to delegate to a subcommittee any of the administrative powers the Committee is authorized to exercise (and references in this Plan to the Board shall
thereafter be to the Committee or subcommittee), subject, however, to such resolutions, not inconsistent with the provisions of the Plan, as may be adopted from time to time by the Board. The Board may abolish the Committee at any time and revest in
the Board the administration of the Plan. 
  
 (ii)    Committee
Composition when Common Stock is Publicly Traded.    At such time as the Common Stock is publicly traded, in the discretion of the Board, a Committee may consist solely of two or more Outside Directors, in accordance with
Section 162(m) of the Code, and/or solely of two or more Non-Employee Directors, in accordance with Rule 16b-3. Within the scope of such authority, the Board or the Committee may (1) delegate to a committee of one or more members of the Board who
are not Outside Directors the authority to grant Stock Awards to eligible persons who are either (a) not then Covered Employees and are not expected to be Covered Employees at the time of recognition of income resulting from such Stock Award or (b)
not persons with respect to whom the Company wishes to comply with Section 162(m) of the Code and/or (2) delegate to a committee of one or more members of the Board who are not Non-Employee Directors the authority to grant Stock Awards to eligible
persons who are not then subject to Section 16 of the Exchange Act. 
  
 (d)    Effect of Board’s Decision.    All determinations, interpretations and constructions made by the Board in good faith shall not be subject to review by any person and
shall be final, binding and conclusive on all persons. 
  
 4.    SHARES
SUBJECT TO THE PLAN. 
  
 (a)    Share Reserve.    Subject to the provisions of Section 11 relating to adjustments upon changes in Common Stock, the Common Stock that may be issued pursuant to Stock Awards
shall not exceed in the aggregate twenty-two million (22,000,000) shares of Common Stock. 
  
 (b)    Reversion of Shares to the Share Reserve.    If any Stock Award shall for any reason expire or otherwise terminate, in whole or in part, without having been exercised in
full, the shares of Common Stock not acquired under such Stock Award shall revert to and again become available for issuance under the Plan. 
 

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 (c)    Source of Shares.    The shares of Common
Stock subject to the Plan may be unissued shares or reacquired shares, bought on the market or otherwise. 
  
 5.    ELIGIBILITY. 
  
 (a)    Eligibility for Specific Stock Awards.    Stock Awards may be granted to Employees, Directors and Consultants. 
  
 (b)    Restrictions on Eligibility.    Notwithstanding the foregoing, the aggregate number of shares
issued pursuant to Stock Awards granted to Officers and Directors cannot exceed forty percent (40%) of the number of shares reserved for issuance under the Plan as determined at the time of each such issuance to an Officer or Director, except that
there shall be excluded from this calculation shares issued to Officers not previously employed by the Company pursuant to Stock Awards granted as an inducement essential to such individuals entering into employment contracts with the Company.

  
 (c)    Consultants.  
  
 (i)    A Consultant shall not be eligible for the grant of a Stock Award if, at the time of
grant, a Form S-8 Registration Statement under the Securities Act (“Form S-8”) is not available to register either the offer or the sale of the Company’s securities to such Consultant because of the nature of the services that the
Consultant is providing to the Company, or because the Consultant is not a natural person, or as otherwise provided by the rules governing the use of Form S-8, unless the Company determines both (i) that such grant (A) shall be registered in another
manner under the Securities Act (e.g., on a Form S-3 Registration Statement) or (B) does not require registration under the Securities Act in order to comply with the requirements of the Securities Act, if applicable, and (ii) that such grant
complies with the securities laws of all other relevant jurisdictions. 
  
 (ii)    Form S-8 generally is available to consultants and advisors only if (i) they are natural persons; (ii) they provide bona fide services to the issuer, its parents, its majority-owned subsidiaries or
majority-owned subsidiaries of the issuer’s parent; and (iii) the services are not in connection with the offer or sale of securities in a capital-raising transaction, and do not directly or indirectly promote or maintain a market for the
issuer’s securities. 
  
 6.    OPTION PROVISIONS.

  
 Each Option shall be in such form (including electronic form) and shall contain such terms and conditions as
the Board shall deem appropriate. The provisions of separate Options need not be identical, but each Option shall include (through incorporation of provisions hereof by reference in the Option or otherwise) the substance of each of the following
provisions: 
  
 (a)    Term.    The term of an
Option shall be the term determined by the Board, either at the time of grant of the Option or as the Option may be amended thereafter. 
  
 (b)    Exercise Price of a Nonstatutory Stock Option.    The exercise price of each Nonstatutory Stock Option shall be not less than one hundred
percent (100%) of the Fair Market Value of the Common Stock subject to the Option on the date the Option is granted. Notwithstanding the foregoing, a Nonstatutory Stock Option may be granted with an exercise price lower than that set forth in the
preceding sentence if such Option is granted pursuant to an assumption or substitution for another option in a manner satisfying the provisions of Section 424(a) of the Code. 
 

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 (c)    Consideration.    The purchase price of Common Stock acquired pursuant to an Option shall be paid, to the extent permitted by applicable statutes and regulations, either
(i) in cash at the time the Option is exercised or (ii) at the discretion of the Board at the time of the grant of the Option (or subsequently in the case of a Nonstatutory Stock Option) (1) by delivery to the Company of other Common Stock, (2)
according to a deferred payment or other similar arrangement with the Optionholder or (3) in any other form of legal consideration that may be acceptable to the Board. Unless otherwise specifically provided in the Option, the purchase price of
Common Stock acquired pursuant to an Option that is paid by delivery to the Company of other Common Stock acquired, directly or indirectly from the Company, shall be paid only by shares of the Common Stock of the Company that have been held for more
than six (6) months (or such longer or shorter period of time required to avoid a charge to earnings for financial accounting purposes). At any time that the Company is incorporated in Delaware, payment of the Common Stock’s “par
value,” as defined in the Delaware General Corporation Law, shall not be made by deferred payment. 
  
 In the case of any deferred payment arrangement, interest shall be compounded at least annually and shall be charged at the minimum rate of interest necessary to avoid the treatment as interest, under any applicable provisions of the
Code, of any amounts other than amounts stated to be interest under the deferred payment arrangement. 
  
 (d)    Transferability of an Option.    An Option shall be transferable to the extent provided in the Option Agreement. If the Option Agreement does not provide for
transferability, then the Option shall not be transferable except by will or by the laws of descent and distribution or, in the case of a Nonstatutory Stock Option only, pursuant to a domestic relations order (as defined by the Code or the rules
thereunder) and shall be exercisable during the lifetime of the Optionholder only by the Optionholder or a transferee as permitted by this Section. Notwithstanding the foregoing, the Optionholder may, by delivering notice to the Company, in a form
satisfactory to the Company, designate a third party who, in the event of the death of the Optionholder, shall thereafter be entitled to exercise the Option. 
  
 (e)    Vesting Generally.    The total number of shares of Common Stock subject to an Option may, but
need not, vest and therefore become exercisable in periodic installments that may, but need not, be equal. The Option may be subject to such other terms and conditions on the time or times when it may be exercised (which may be based on performance
or other criteria) as the Board may deem appropriate. The vesting provisions of individual Options may vary. The provisions of this subsection 6(e) are subject to any Option provisions governing the minimum number of shares of Common Stock as to
which an Option may be exercised. 
  
 (f)    Termination of Continuous
Service.    In the event an Optionholder’s Continuous Service terminates (other than upon the Optionholder’s death or Disability), the Optionholder may exercise his or her Option (to the extent that the Optionholder
was entitled to exercise such Option as of the date of termination) but only within such period of time ending on the earlier of (i) the date thirty (30) days following the termination of the Optionholder’s Continuous Service (or such longer or
shorter period specified in the Option Agreement), or (ii) the expiration of the term of the Option as set forth in the Option Agreement. If, after termination, the Optionholder does not exercise his or her Option within the time specified in the
Option Agreement, the Option shall terminate. 
  
 (g)    Extension of
Termination Date.    An Optionholder’s Option Agreement may also provide that if the exercise of the Option following the termination of the Optionholder’s Continuous Service (other than upon the Optionholder’s
death or Disability) would be prohibited at any time solely because the issuance of shares of Common Stock would violate the registration requirements under the Securities Act, then the Option shall terminate on the earlier of (i) the expiration of
the term of the Option set forth in the Option Agreement, or (ii) the expiration of the applicable period of time after the termination of the Optionholder’s Continuous Service during which the exercise of the Option would not be in violation
of such registration requirements. 
 

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 (h)    Disability of
Optionholder.    In the event that an Optionholder’s Continuous Service terminates as a result of the Optionholder’s Disability, the Optionholder may exercise his or her Option (to the extent that the Optionholder
was entitled to exercise such Option as of the date of termination), but only within such period of time ending on the earlier of (i) the date twelve (12) months following such termination (or such longer or shorter period specified in the Option
Agreement) or (ii) the expiration of the term of the Option as set forth in the Option Agreement. If, after termination, the Optionholder does not exercise his or her Option within the time specified herein, the Option shall terminate. 

 
 (i)    Death of Optionholder.    In the event an
Optionholder’s Continuous Service terminates as a result of the Optionholder’s death, then the Option may be exercised (to the extent the Optionholder was entitled to exercise such Option as of the date of death) by the Optionholder’s
estate, by a person who acquired the right to exercise the Option by bequest or inheritance or by a person designated to exercise the Option upon the Optionholder’s death pursuant to subsection 6(d), but only within the period ending on the
earlier of (1) the date twelve (12) months following the date of death (or such longer or shorter period specified in the Option Agreement) or (2) the expiration of the term of such Option as set forth in the Option Agreement. If, after death, the
Option is not exercised within the time specified herein, the Option shall terminate. 
  
 (j)    Early Exercise.    The Option may, but need not, include a provision whereby the Optionholder may elect at any time before the Optionholder’s Continuous Service
terminates to exercise the Option as to any part or all of the shares of Common Stock subject to the Option prior to the full vesting of the Option. Any unvested shares of Common Stock so purchased may be subject to a repurchase option in favor of
the Company or to any other restriction the Board determines to be appropriate. The Company will not exercise its repurchase option until at least six (6) months (or such longer or shorter period of time required to avoid a charge to earnings for
financial accounting purposes) have elapsed following exercise of the Option unless the Board otherwise specifically provides in the Option. 
  
 (k)    Re-Load Options.  
  
 (i)    Without in any way limiting the authority of the Board to make or not to make grants of Options hereunder, the Board shall have the authority (but not an obligation) to include as part of any Option
Agreement a provision entitling the Optionholder to a further Option (a “Re-Load Option”) in the event the Optionholder exercises the Option evidenced by the Option Agreement, in whole or in part, by surrendering other shares of Common
Stock in accordance with this Plan and the terms and conditions of the Option Agreement. Unless otherwise specifically provided in the Option, the Optionholder shall not surrender shares of Common Stock acquired, directly or indirectly from the
Company, unless such shares have been held for more than six (6) months (or such longer or shorter period of time required to avoid a charge to earnings for financial accounting purposes). 
  
 (ii)    Any such Re-Load Option shall (1) provide for a number of shares of Common Stock equal to the number of shares of Common
Stock surrendered as part or all of the exercise price of such Option; (2) have an expiration date which is the same as the expiration date of the Option the exercise of which gave rise to such Re-Load Option; and (3) have an exercise price which is
equal to one hundred percent (100%) of the Fair Market Value of the Common Stock subject to the Re-Load Option on the date of exercise of the original Option. Notwithstanding the foregoing, a Re-Load Option shall be subject to the same exercise
price and term provisions heretofore described for Options under the Plan. 
  
 (iii)    There shall be no Re-Load Options on a Re-Load Option. Any such Re-Load Option shall be subject to the availability of sufficient shares of Common Stock under subsection 4(a) and shall be subject
to such other terms and conditions as the Board may determine which are not inconsistent with the express provisions of the Plan regarding the terms of Options. 
 

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 7.    PROVISIONS OF
STOCK AWARDS OTHER THAN OPTIONS. 
  
 (a)    Stock Bonus Awards.    Each stock bonus agreement shall be in such form and shall contain such terms and conditions as the Board shall deem appropriate. The terms and
conditions of stock bonus agreements may change from time to time, and the terms and conditions of separate stock bonus agreements need not be identical, but each stock bonus agreement shall include (through incorporation of provisions hereof by
reference in the agreement or otherwise) the substance of each of the following provisions: 
  
 (i)    Consideration.    A stock bonus may be awarded in consideration for past services actually rendered to the Company or an Affiliate for its benefit. 
  
 (ii)    Vesting.    Shares of Common Stock awarded under the stock
bonus agreement may, but need not, be subject to a share repurchase option in favor of the Company in accordance with a vesting schedule to be determined by the Board. 
  
 (iii)    Termination of Participant’s Continuous Service.    In the event a Participant’s
Continuous Service terminates, the Company may reacquire any or all of the shares of Common Stock held by the Participant which have not vested as of the date of termination under the terms of the stock bonus agreement. 
  
 (iv)    Transferability.    Rights to acquire shares of Common Stock
under the stock bonus agreement shall be transferable by the Participant only upon such terms and conditions as are set forth in the stock bonus agreement, as the Board shall determine in its discretion, so long as Common Stock awarded under the
stock bonus agreement remains subject to the terms of the stock bonus agreement. 
  
 (b)    Restricted Stock Awards.    Each restricted stock purchase agreement shall be in such form and shall contain such terms and conditions as the Board shall deem appropriate.
The terms and conditions of the restricted stock purchase agreements may change from time to time, and the terms and conditions of separate restricted stock purchase agreements need not be identical, but each restricted stock purchase agreement
shall include (through incorporation of provisions hereof by reference in the agreement or otherwise) the substance of each of the following provisions: 
  
 (i)    Purchase Price.    The purchase price under each restricted stock purchase agreement shall be
such amount as the Board shall determine and designate in such restricted stock purchase agreement. The purchase price shall not be less than one hundred percent (100%) of the Common Stock’s Fair Market Value on the date such award is made or
at the time the purchase is consummated. 
  
 (ii)    Consideration.    The purchase price of Common Stock acquired pursuant to the restricted stock purchase agreement shall be paid either: (i) in cash at the time of
purchase; (ii) at the discretion of the Board, according to a deferred payment or other similar arrangement with the Participant; or (iii) in any other form of legal consideration that may be acceptable to the Board in its discretion; provided,
however, that at any time that the Company is incorporated in Delaware, then payment of the Common Stock’s “par value,” as defined in the Delaware General Corporation Law, shall not be made by deferred payment. 

 
 (iii)    Vesting.    Shares of Common Stock acquired
under the restricted stock purchase agreement may, but need not, be subject to a share repurchase option in favor of the Company in accordance with a vesting schedule to be determined by the Board. 
  
 (iv)    Termination of Participant’s Continuous Service.    In
the event a Participant’s Continuous Service terminates, the Company may repurchase or otherwise reacquire any or all of the shares of

 

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Common Stock held by the Participant which have not vested as of the date of termination under the terms of the restricted stock purchase agreement. 
  
 (v)    Transferability.    Rights to acquire shares of Common Stock
under the restricted stock purchase agreement shall be transferable by the Participant only upon such terms and conditions as are set forth in the restricted stock purchase agreement, as the Board shall determine in its discretion, so long as Common
Stock awarded under the restricted stock purchase agreement remains subject to the terms of the restricted stock purchase agreement. 
  
 8.    COVENANTS OF THE COMPANY. 
  
 (a)    Availability of Shares.    During the terms of the Stock Awards, the Company shall keep available at all times the number of shares of
Common Stock required to satisfy such Stock Awards. 
  
 (b)    Securities Law Compliance.    The Company shall seek to obtain from each regulatory commission or agency having jurisdiction over the Plan such authority as may be required
to grant Stock Awards and to issue and sell shares of Common Stock upon exercise of the Stock Awards; provided, however, that this undertaking shall not require the Company to register under the Securities Act the Plan, any Stock Award or any Common
Stock issued or issuable pursuant to any such Stock Award. If, after reasonable efforts, the Company is unable to obtain from any such regulatory commission or agency the authority which counsel for the Company deems necessary for the lawful
issuance and sale of Common Stock under the Plan, the Company shall be relieved from any liability for failure to issue and sell Common Stock upon exercise of such Stock Awards unless and until such authority is obtained. 
  
 9.    USE OF PROCEEDS FROM STOCK.

  
 Proceeds from the sale of Common Stock pursuant to Stock Awards shall constitute general funds of the
Company. 
  
 10.    MISCELLANEOUS. 
  
 (a)    Acceleration of Exercisability and Vesting.    The Board
shall have the power to accelerate the time at which a Stock Award may first be exercised or the time during which a Stock Award or any part thereof will vest in accordance with the Plan, notwithstanding the provisions in the Stock Award stating the
time at which it may first be exercised or the time during which it will vest. 
  
 (b)    Shareholder Rights.    No Participant shall be deemed to be the holder of, or to have any of the rights of a holder with respect to, any shares of Common Stock subject to
such Stock Award unless and until such Participant has satisfied all requirements for exercise of the Stock Award pursuant to its terms. 
  
 (c)    No Employment or other Service Rights.    Nothing in the Plan or any instrument executed or Stock Award granted pursuant thereto shall
confer upon any Participant any right to continue to serve the Company or an Affiliate in the capacity in effect at the time the Stock Award was granted or shall affect the right of the Company or an Affiliate to terminate (i) the employment of an
Employee with or without notice and with or without cause, (ii) the service of a Consultant pursuant to the terms of such Consultant’s agreement with the Company or an Affiliate or (iii) the service of a Director pursuant to the Bylaws of the
Company or an Affiliate, and any applicable provisions of the corporate law of the state in which the Company or the Affiliate is incorporated, as the case may be. 
  
 (d)    Investment Assurances.    The Company may require a Participant, as a condition of exercising
or acquiring Common Stock under any Stock Award, (i) to give assurances satisfactory to the Company as to

 

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the Participant’s knowledge and experience in financial and business matters and/or to employ a purchaser representative reasonably satisfactory to the Company who is knowledgeable and
experienced in financial and business matters and that he or she is capable of evaluating, alone or together with the purchaser representative, the merits and risks of exercising the Stock Award; and (ii) to give assurances satisfactory to the
Company stating that the Participant is acquiring Common Stock subject to the Stock Award for the Participant’s own account and not with any present intention of selling or otherwise distributing the Common Stock. The foregoing requirements,
and any assurances given pursuant to such requirements, shall be inoperative if (1) the issuance of the shares of Common Stock upon the exercise or acquisition of Common Stock under the Stock Award has been registered under a then currently
effective registration statement under the Securities Act or (2) as to any particular requirement, a determination is made by counsel for the Company that such requirement need not be met in the circumstances under the then applicable securities
laws. The Company may, upon advice of counsel to the Company, place legends on stock certificates issued under the Plan as such counsel deems necessary or appropriate in order to comply with applicable securities laws, including, but not limited to,
legends restricting the transfer of the Common Stock. 
  
 (e)    Withholding Obligations.    To the extent provided by the terms of a Stock Award Agreement, the Participant may satisfy any federal, state or local tax withholding
obligation relating to the exercise or acquisition of Common Stock under a Stock Award by any of the following means (in addition to the Company’s right to withhold from any compensation paid to the Participant by the Company) or by a
combination of such means: (i) tendering a cash payment; (ii) authorizing the Company to withhold shares of Common Stock from the shares of Common Stock otherwise issuable to the Participant as a result of the exercise or acquisition of Common Stock
under the Stock Award, provided, however, that no shares of Common Stock are withheld with a value exceeding the minimum amount of tax required to be withheld by law; or (iii) delivering to the Company owned and unencumbered shares of Common Stock.

  
 11.    ADJUSTMENTS UPON CHANGES
IN STOCK. 
  
 (a)    Capitalization
Adjustments.    If any change is made in the Common Stock subject to the Plan, or subject to any Stock Award, without the receipt of consideration by the Company (through merger, consolidation, reorganization,
recapitalization, reincorporation, stock dividend, dividend in property other than cash, stock split, liquidating dividend, combination of shares, exchange of shares, change in corporate structure or other transaction not involving the receipt of
consideration by the Company), the Plan will be appropriately adjusted in the class(es) and maximum number of securities subject to the Plan pursuant to subsection 4(a), and the outstanding Stock Awards will be appropriately adjusted in the
class(es) and number of securities and price per share of Common Stock subject to such outstanding Stock Awards. The Board shall make such adjustments, and its determination shall be final, binding and conclusive. (The conversion of any convertible
securities of the Company shall not be treated as a transaction “without receipt of consideration” by the Company.) 
  
 (b)    Dissolution or Liquidation.    In the event of the proposed dissolution or liquidation of the Company, all outstanding Stock Awards will
terminate immediately prior to the consummation of such proposed action, unless otherwise provided by the Board. The Board may, in the exercise of its sole discretion in such instances, declare that any Stock Award shall terminate as of a date fixed
by the Board and, if applicable, give each Participant the right to exercise his or her Stock Award as to all or any part of the shares subject to the Stock Award, including shares of Common Stock as to which the Stock Award would not otherwise be
exercisable. 
  
 (c)    Corporate
Transactions.    In the event of (i) a sale, lease or other disposition of all or substantially all of the assets of the Company, (ii) a merger or consolidation in which the Company is not the surviving corporation or (iii) a
reverse merger in which the Company is the surviving corporation but the shares

 

 10 

 
of Common Stock outstanding immediately preceding the merger are converted by virtue of the merger into other property, whether in the form of securities, cash or otherwise, then the Stock Awards
shall vest (and, if applicable, become immediately exercisable) for the number of shares of Common Stock that would otherwise be vested under the terms of the Stock Award one (1) year after the date of such transaction. Thereafter, the Stock Award
shall be assumed or an equivalent stock award shall be substituted by such successor corporation or a parent or subsidiary of such successor corporation, unless the Board determines, in the exercise of its sole discretion and in lieu of such
assumption or substitution, that the Stock Award shall vest and, if applicable, the Participant shall have the right to immediately exercise the Stock Award as to some or all of the shares of Common Stock, including shares of Common Stock as to
which the Stock Award would not otherwise be vested and exercisable. If the Board makes a Stock Award vested (and, if applicable, immediately exercisable) in lieu of assumption or substitution in the event of a merger or sale of assets, the Board
shall notify the Participant that the Stock Award shall be vested (and, if applicable, immediately exercisable) for a period of fifteen (15) days from the date of such notice, and the Stock Award will terminate upon the expiration of such period.

  
 12.    AMENDMENT OF THE PLAN
AND STOCK AWARDS. 
  
 (a)    Amendment of Plan.    The Board at any time, and from time to time, may amend the Plan. 
  
 (b)    Shareholder Approval.    The Board may, in its sole discretion, submit any other amendment to
the Plan for shareholder approval, including, but not limited to, amendments to the Plan intended to satisfy the requirements of Section 162(m) of the Code and the regulations thereunder regarding the exclusion of performance-based compensation from
the limit on corporate deductibility of compensation paid to certain executive officers. 
  
 (c)    Contemplated Amendments.    It is expressly contemplated that the Board may amend the Plan in any respect the Board deems necessary or advisable to provide eligible
Employees with the maximum benefits provided or to be provided under the provisions of the Code and the regulations promulgated thereunder and/or to bring the Plan and/or Options into compliance therewith. 
  
 (d)    No Impairment of Rights.    Rights under any Stock Award
granted before amendment of the Plan shall not be impaired by any amendment of the Plan unless (i) the Company requests the consent of the Participant and (ii) the Participant consents to such amendment. 
  
 (e)    Amendment of Stock Awards.    The Board at any time, and from
time to time, may amend the terms of any one or more Stock Awards; provided, however, that the rights under any Stock Award shall not be impaired by any such amendment unless (i) the Company requests the consent of the Participant and (ii) the
Participant consents to such amendment. 
  
 13.    TERMINATION
OR SUSPENSION OF THE PLAN. 
  
 (a)    Plan Term.    The Board may suspend or terminate the Plan at any time. Unless sooner terminated, the Plan shall terminate on the day before the tenth (10th) anniversary of
the date the Plan is adopted by the Board. No Stock Awards may be granted under the Plan while the Plan is suspended or after it is terminated. 
  
 (b)    No Impairment of Rights.    Suspension or termination of the Plan shall not impair rights and obligations under any Stock Award granted
while the Plan is in effect except with the consent of the Participant. 
  
 14.    EFFECTIVE DATE OF PLAN. 
 

 11 

  
 The Plan shall become effective as determined by the Board. 

 
 15.    CHOICE OF LAW. 
  
 The law of the State of Delaware shall govern all questions concerning the construction, validity and interpretation of this Plan, without
regard to such state’s conflict of laws rules. 
 

 12 

 APPLIED MICRO CIRCUITS CORPORATION 
 2000 EQUITY INCENTIVE PLAN 
  
 FORM OF NOTICE
OF GRANT, STOCK OPTION AGREEMENT AND NOTICE OF EXERCISE 
  

Applied Micro Circuits Corporation (the “Company”), pursuant to its 2000 Equity Incentive Plan (the “Plan”), hereby grants to Optionholder an option to purchase the
number of shares of the Company’s Common Stock set forth below. This option is subject to all of the terms and conditions as set forth herein and in the Stock Option Agreement, the Plan and the Notice of Exercise, all of which are attached
hereto and incorporated herein in their entirety. 
  
 
	 Optionholder:
 
	 Date of Grant:
 
	 Vesting Commencement Date:
 
	 Number of Shares Subject to Option:
 
	 Exercise Price (Per Share):
 
	 Total Exercise Price:
 
	 Expiration Date:
 

 
  
 
	 Type of Grant:           x  Nonstatutory Stock Option
 
	 Exercise Schedule:     x  Same as Vesting
Schedule*         ̈  Early Exercise Permitted
 

 
 

	*
	 
	Except as otherwise provided in your Option Agreement, unless you qualify as an exempt employee under state and federal wage and hour laws or are a
resident outside the United States, you may not exercise an option within six (6) months of the date of grant, even if the option is vested at that time; provided, however, that you may exercise such option within the six-month period following the
date of grant if your Continuous Service is terminated due to your death or Disability or due to such other circumstance(s) that would entitle the income derived from such option exercise to be exempted from your regular rate under the Fair Labor
Standards Act of 1938 by reason of the Worker Economic Opportunity Act. In addition and notwithstanding anything to the contrary in Section 6(a) of your Option Agreement, unless you qualify as an exempt employee under state and federal wage and hour
laws, in the event that the termination of your Continuous Service for any reason other than your Disability or death occurs within the six-month period following the date on which your option was granted, then your option shall expire ninety (90)
days after the end of such six-month period. 
 

  
 
	 Vesting Schedule:
 	 	 1/48th of the shares vest monthly over four years, subject to the shares not vesting earlierthan the Optionee’s initial options, and such that this
option is fully vested in four years.
 
	 Payment:
 	 	 By one or a combination of the following items (described in the Stock Option Agreement):
 

 
 
	 By cash or check
 
	 Pursuant to a Regulation T Program if the Shares are publicly traded
 
	 By delivery of already-owned shares if the Shares are publicly traded
 

 
  
 Additional Terms/Acknowledgements:    The undersigned
Optionholder acknowledges receipt of, and understands and agrees to, this Grant Notice, the Stock Option Agreement and the Plan. Optionholder further acknowledges that as of the Date of Grant, this Grant Notice, the Stock Option Agreement and the
Plan set forth the entire understanding between Optionholder and the Company regarding the acquisition of stock in the Company and supersede all prior oral and written agreements on that subject with the exception of (i) options previously granted
and delivered to Optionholder under the Plan, and (ii) the following agreements only: 
  
 OTHER
AGREEMENTS: 
  
                                      
                                        
                           
  
                                      
                                        
                           
 

 13 

  
  
  
  
 
	 APPLIED MICRO CIRCUITS CORPORATION
  
 OPTIONHOLDER:
 
	 
	 By:
 	 	 /s/    DAVID M.
RICKEY        
 

	  	 	 Signature
 
	 
	 Title:    Chief Executive Officer
 
	 
	 Date:                                    
                                        
                 
 

 
  
  
  
 ATTACHMENTS:    Stock Option Agreement, 2000 Equity Incentive Plan and Notice of Exercise 
 

 14 

 APPLIED MICRO CIRCUITS CORPORATION 
 2000 EQUITY INCENTIVE PLAN 
  
 Pursuant to your Stock Option Grant Notice (“Grant
Notice”) and this Stock Option Agreement, Applied Micro Circuits Corporation (the “Company”) has granted you an option under its 2000 Equity Incentive Plan (the “Plan”) to purchase the number of shares of the Company’s
Common Stock indicated in your Grant Notice at the exercise price indicated in your Grant Notice. Defined terms not explicitly defined in this Stock Option Agreement but defined in the Plan shall have the same definitions as in the Plan.

  
 The details of your option are as follows: 
  
 1.    VESTING.    Subject to the limitations contained herein, your option will vest as
provided in your Grant Notice, provided that vesting will cease upon the termination of your Continuous Service. 
  
 2.    NUMBER OF SHARES AND EXERCISE PRICE.    The number of shares of
Common Stock subject to your option and your exercise price per share referenced in your Grant Notice may be adjusted from time to time for Capitalization Adjustments, as provided in the Plan. 
  

3.    METHOD OF PAYMENT.    Payment of the exercise
price is due in full upon exercise of all or any part of your option. You may elect to make payment of the exercise price in cash or by check or in any other manner permitted by your Grant Notice, which may include one or more of the
following: 
  
 (a)    In the Company’s sole discretion at the time
your option is exercised and provided that at the time of exercise the Common Stock is publicly traded and quoted regularly in The Wall Street Journal, pursuant to a program developed under Regulation T as promulgated by the Federal Reserve
Board that, prior to the issuance of Common Stock, results in either the receipt of cash (or check) by the Company or the receipt of irrevocable instructions to pay the aggregate exercise price to the Company from the sales proceeds. 

 
 (b)    Provided that at the time of exercise the Common Stock is publicly traded and
quoted regularly in The Wall Street Journal, by delivery of already-owned shares of Common Stock that (x) you have held for the period required to avoid a charge to the Company’s reported earnings (generally six months) or that you did
not acquire, directly or indirectly from the Company, (y) are owned free and clear of any liens, claims, encumbrances or security interests and (z) have a Fair Market Value on the date of delivery equal to the exercise price of the Shares as to
which your option is being exercised. “Delivery” for these purposes, in the sole discretion of the Company at the time you exercise your option, shall include delivery to the Company of your attestation of ownership of such shares of
Common Stock in a form approved by the Company. Notwithstanding the foregoing, you may not exercise your option by tender to the Company of Common Stock to the extent such tender would violate the provisions of any law, regulation or agreement
restricting the redemption of the Company’s stock. 
 

 15 

  
 4.    WHOLE
SHARES.    You may exercise your option only for whole shares of Common Stock. 
  
 5.    SECURITIES LAW COMPLIANCE.    Notwithstanding anything to the contrary contained herein, you may not
exercise your option unless the shares of Common Stock issuable upon such exercise are then registered under the Securities Act or, if such shares of Common Stock are not then so registered, the Company has determined that such exercise and issuance
would be exempt from the registration requirements of the Securities Act. The exercise of your option must also comply with other applicable laws and regulations governing your option, and you may not exercise your option if the Company determines
that such exercise would not be in material compliance with such laws and regulations. 
  
 6.    TERM.    You may not exercise your option before the commencement of its term or after its term expires. The term of your option commences on
the Date of Grant and expires upon the earliest of the following: 
  
 (a)    ninety (90) days after the termination of your Continuous Service for any reason other than your Disability or death, provided that if you were an Executive Officer on the Date of Grant or at
any time prior to the Date of Grant and the termination of your Continuous Service is due to the commencement of your Retirement, such period of exercise after the date of termination shall be fifteen (15) months or, if your Total Service was
more than seven (7) years at the date your Retirement commences, twenty-four (24) months (but in no event later than the Expiration Date), provided further, that if during any part of such period (whether 90 days, 15 months or 24 months) your
option is not exercisable solely because of the condition set forth in the preceding paragraph relating to “Securities Law Compliance,” your option shall not expire until the earlier of the Expiration Date or until it shall have been
exercisable for an aggregate period equal to the applicable period of time after the termination of your Continuous Service; 
  
 (b)    fifteen (15) months after the termination of your Continuous Service due to your Disability; 
  
 (c)    fifteen (15) months after your death if you die during your Continuous Service; 
  
 (d)    the Expiration Date indicated in your Grant Notice; or 
  
 (e)    the day before the tenth (10th) anniversary of the Date of Grant. 

 
 7.    EXERCISE. 
  
 (a)    You may exercise the vested portion of your option during its term by any of the following methods: (i) online exercise
through a captive broker designated by the Company (a “Captive Broker”), (ii) telephonic exercise communicated to a representative of a Captive Broker, (iii) telephonic exercise through a voice response system designated by the Company or
(iv) such other method or methods of exercise as may be designated by the Company from time to time. Any such method of exercise shall require you to notify the Company of your election to exercise your option and the number of Shares in respect of
which your option is being exercised, and may require you to make such other representations and

 

 16 

 
agreements as to your investment intent with respect to such shares of Common Stock as may be required by the Company pursuant to the provisions of the Plan (collectively, an “Exercise
Notice”). Your option shall be deemed to be exercised upon receipt by the Company or Captive Broker, as applicable, of such Exercise Notice and receipt by the Company of the exercise price for the Shares in respect of which your option is being
exercised. 
  
 (b)    By exercising your option you agree that, as a
condition to any exercise of your option, the Company may require you to enter into an arrangement providing for the payment by you to the Company of any tax withholding obligation of the Company arising by reason of (1) the exercise of your option,
(2) the lapse of any substantial risk of forfeiture to which the shares of Common Stock are subject at the time of exercise, or (3) the disposition of shares of Common Stock acquired upon such exercise. 
  
 8.    TRANSFERABILITY.    Your option is not transferable, except by
will or by the laws of descent and distribution or, in the case of a Nonstatutory Stock Option only, pursuant to a domestic relations order (as defined by the Code or the rules thereunder), and is exercisable during your life only by you.
Notwithstanding the foregoing, by delivering notice to the Company, in a form satisfactory to the Company, you may designate a third party who, in the event of your death, shall thereafter be entitled to exercise your option. 

 
 9.    “AT-WILL” EMPLOYMENT
RELATIONSHIP; OPTION NOT A SERVICE CONTRACT.    If you are an Employee, your employment relationship with the Company is an
“at-will” employment relationship unless the Company and you have entered into an express written agreement that sets forth a different employment relationship. Your option is not an employment or service contract, and nothing in your
option shall be deemed to create in any way whatsoever any obligation on your part to continue in the employ of the Company or an Affiliate, or of the Company or an Affiliate to continue your employment. In addition, nothing in your option shall
obligate the Company or an Affiliate, their respective shareholders, Boards of Directors, Officers or Employees to continue any relationship that you might have as a Director or Consultant for the Company or an Affiliate. 
  
 10.    WITHHOLDING OBLIGATIONS. 
  
 (a)    At the time you exercise your option, in whole or in part, or at any time thereafter as
requested by the Company, you hereby authorize withholding from payroll and any other amounts payable to you, and otherwise agree to make adequate provision for (including by means of a “cashless exercise” pursuant to a program developed
under Regulation T as promulgated by the Federal Reserve Board to the extent permitted by the Company), any sums required to satisfy the federal, state, local and foreign tax withholding obligations of the Company or an Affiliate, if any, which
arise in connection with your option. 
  
 (b)    Upon your request and
subject to approval by the Company, in its sole discretion, and compliance with any applicable conditions or restrictions of law, the Company may withhold from fully vested shares of Common Stock otherwise issuable to you upon the exercise of your
option a number of whole shares of Common Stock having a Fair Market Value, determined by the Company as of the date of exercise, not in excess of the minimum amount of tax required to be withheld by law. If the date of determination of any tax
withholding

 

 17 

 
obligation is deferred to a date later than the date of exercise of your option, share withholding pursuant to the preceding sentence shall not be permitted unless you make a proper and timely
election under Section 83(b) of the Code, covering the aggregate number of shares of Common Stock acquired upon such exercise with respect to which such determination is otherwise deferred, to accelerate the determination of such tax withholding
obligation to the date of exercise of your option. Notwithstanding the filing of such election, shares of Common Stock shall be withheld solely from fully vested shares of Common Stock determined as of the date of exercise of your option that are
otherwise issuable to you upon such exercise. Any adverse consequences to you arising in connection with such share withholding procedure shall be your sole responsibility. 
  
 (c)    You may not exercise your option unless the tax withholding obligations of the Company and/or any Affiliate are satisfied.
Accordingly, you may not be able to exercise your option when desired even though your option is vested, and the Company shall have no obligation to issue a certificate for such shares of Common Stock or release such shares of Common Stock from any
escrow provided for herein. 
  
 11.    NOTICES.    Any notices provided for in your option or the Plan shall be deemed effectively given upon receipt or, in the case of notices
delivered by mail by the Company to you, five (5) days after deposit in the United States mail, postage prepaid, addressed to you at the last address you provided to the Company. 
  
 12.    GOVERNING PLAN DOCUMENT.    Your option is subject
to all the provisions of the Plan, the provisions of which are hereby made a part of your option, and is further subject to all interpretations, amendments, rules and regulations which may from time to time be promulgated and adopted pursuant to the
Plan. In the event of any conflict between the provisions of your option and those of the Plan, the provisions of the Plan shall control. 
  
 NOTICE OF EXERCISE 
  
 
	 To:
 	  	 Applied Micro Circuits Corporation
 
	 Attn:
 	  	 Stock Option Administrator
 
	 Subject:
 	  	 Notice of Intention to Exercise Stock Option
 

 
  
 This is official notice that the undersigned (“Optionee”)
intends to exercise Optionee’s option to purchase Shares of Applied Micro Circuits Corporation Common Stock, all of which are vested, as follows: 
  
 
	 Option
 Number
 
	    	 Option
 Date
 
	    	 Type of
 Option
 ISO/NQ
 
	    	 Number of Shares Being
Purchased
 
	    	 Option Price
(Per Share)
 
	    	 Tax Due*
 (if applicable)
 
	    	 Total Amount
Due AMCC
 

	  	    	  	    	  	    	  	    	  	    	  	    	  
	  	    	  	    	  	    	  	    	  	    	  	    	  
	  	    	  	    	  	    	  	    	  	    	  	    	  
	  	    	  	    	  	    	  	    	  	    	  	    	  

 
 

 18 

 *AMCC is required to withhold taxes when employees exercise an NQO. Under current law, U.S. income tax withholding is not
required when exercising an ISO. 
  
 I am paying the cost to exercise as specified below by method a, b or c (circle
one below) 
  
 a.    Cash Payment:    Enclosed is my
check #                  in the amount of $                . 

 
 b.    Cashless Exercise and Same-Day Sale:    I will call my
stockbroker (complete broker info below) to authorize them to issue a check payable to AMCC from my account #
                        . 
  
 Broker Name and
Contact:                                      
                 
  
 Broker Telephone
No.:                                       
                      
  
 c.    Surrender or Swap Shares Owned:    (Shares must have been held for at least six months.) 
  
 I certify that the stock purchased through the exercise of these options will not be sold in a manner that would violate the Company’s policy on Insider Trading.

  
 Optionee’s
Signature:                                      
                                        
                           
  
 Print
Name:                                       
                                        
                                         

  
 Social Security
Number:                                       
                                        
                      
  
 Send
shares to: 
  
 Broker
Name                                       
                              
  
 Account
No.                                       
                               
  
 My home
address                                       
                       
 

 19Prepared by R.R. Donnelley Financial -- Deferred Compensation Plan

  
 Exhibit 10.38 
  
 AMCC 
  
 DEFERRED COMPENSATION PLAN

  
 AMCC 
 DEFERRED COMPENSATION PLAN 
  
 Table of Contents 
  
 
	 Article
 	  	  	  	 Page
 
	 
	 1
 	  	 Purpose
 	  	 1
 
	 2
 	  	 Definitions
 	  	 1
 
	 3
 	  	 Participation in the Plan
 	  	 4
 
	 4
 	  	 Contributions and Allocations
 	  	 5
 
	 5
 	  	 Vesting
 	  	 7
 
	 6
 	  	 Distributions to Participants
 	  	 7
 
	 7
 	  	 Amendment or Termination of the Plan
 	  	 10
 
	 8
 	  	 Plan Administration
 	  	 10
 
	 9
 	  	 Miscellaneous
 	  	 14
 

 
 

 2 

  
 AMCC 
 DEFERRED COMPENSATION PLAN 
  
 The Board of Directors of Applied Micro Circuits Corporation
(the “Company”), a California corporation, adopts this non-qualified deferred compensation plan, known as the AMCC DEFERRED COMPENSATION PLAN (the “Plan”), effective April 1, 2002. 
  
 ARTICLE 1 
  
 1.    PURPOSE.    The purpose of the Plan is to permit a select group of management or highly compensated employees of the Company to accumulate additional
retirement income through a nonqualified deferred compensation plan that enables them to make elective deferrals in excess of those permitted under the AMCC 401(k) Retirement Plan. 
  
 This Plan is not intended to be a qualified plan within the meaning of sections 401(a) and 501(a) of the Internal Revenue Code of 1986, as amended (the “Code”).
This Plan is designed to qualify under the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), as an unfunded plan maintained by the Company primarily for the purpose of providing deferred compensation for a select group
of management or highly compensated employees. If, for any reason, including but not limited to, the promulgation of regulations by the United States Department of Labor, this Plan, either in form or in operation, shall fail to so qualify, the Plan
shall be revised, as necessary, and notwithstanding any other limitations herein, to comply with the requirements for maintaining such an unfunded plan. 
  
 ARTICLE 2 
  
 2.    DEFINITIONS.    As used in this Plan, the following capitalized words and phrases have the meanings indicated, unless a different meaning is expressly provided or
plainly required by the context: 
  
 2.1.    Account
means amounts credited to bookkeeping entries established or maintained for a Participant under the Plan. 
  
 2.2.    Allocation Date means the last day of any Plan Year, or any other date designated by the Committee. 
  
 2.3.    Beneficiary means the person or persons designated by a Participant, or otherwise entitled, to receive any
amount credited to his Account that remains undistributed at his death. 
  
 2.4.    Bonus Compensation means the aggregate bonus amount paid to a Participant by the Company for the Plan Year, which bonus amount is based in whole or in part upon the performance of the
business unit(s) which the Participant is responsible for managing. 
 

 3 

  
 2.5.    Change in
Control means: 
  
 (A)    the shareholders of the Company approve any
plan or proposal for the liquidation or dissolution of the Company; 
  
 (B)    substantially all of the assets or stock of the Company are sold or otherwise transferred to parties that are not within the “controlled group of corporations” (as defined in Section 1563 of the
Code) in which the Company is a member; or 
  
 (C)    a merger, consolidation or
reorganization of the Company with or involving any other corporation, other than a merger, consolidation or reorganization that would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent
(either by remaining outstanding or by being converted into voting securities of the surviving entity) more than fifty percent (50%) of the combined voting power of the voting securities of the Company (or such surviving entity) outstanding
immediately after such merger, consolidation or reorganization. 
  
 2.6.    Code means the Internal Revenue Code of 1986, as amended from time to time. 
  
 2.7.    Committee means the committee appointed in accordance with Section 8.1 to administer the Plan. 
  

2.8.    Company means Applied Micro Circuits Corporation, a California corporation; any entity within the
“controlled group of corporations” (as defined in Section 1563 of the Code) that, with the consent of the Committee, shall participate in this Plan; and any successor that shall maintain this Plan. Where, in the context of the Plan,
Company refers to a single entity, Company means AMCC 
  
 2.9.    Compensation Reduction Accrual means an amount credited to the Compensation Reduction Accrual Account pursuant to a Compensation Reduction Agreement. 
  
 2.10.    Compensation Reduction Accrual Account means the account established to
record Compensation Reduction Accruals authorized by Participants under the terms of this Plan. 
  
 2.11.    Compensation Reduction Agreement means an agreement between a Participant and the Company, under which the Participant agrees to a reduction in his Salary Compensation and/or Bonus
Compensation and the Company agrees to credit him with Compensation Reduction Accruals under this Plan. 
  
 2.12.    Disability means a “disability” as defined in any group long-term disability policy or program sponsored by the Company and in effect at the time a Participant who has
suffered a physical or mental impairment makes application under this Plan for a disability distribution. 
  
 2.13.    Effective Date means April 1, 2002, the date on which this Plan went into effect. 
 

 4 

  
 2.14.    Eligible
Employee means an employee of the Company who has been designated to participate in the Plan by the Committee. 
  
 2.15.    Entry Date means the first day of each payroll period. 
  
 2.16.    Participant means any Eligible Employee who satisfies the conditions for participation in the Plan set forth in Section 3.1. 
  
 2.17.    Plan means the AMCC Deferred Compensation Plan, as set forth herein and
as from time to time amended. 
  
 2.18.    Plan Year means
the twelve (12) consecutive month period beginning each January 1st and ending each December 31st. 
  
 2.19.    Qualified Plan means the AMCC 401(k) Retirement Plan, as from time to time amended. 
  
 2.20.    Salary Compensation means the base annual salary payable to a Participant but shall not include Bonus
Compensation. Salary Compensation also includes Compensation Reduction Accruals attributable to Salary Compensation under this Plan and any elective deferrals under cash-or-deferred arrangements or cafeteria plans that are not includible in gross
income by reason of sections 125 or 402(a)(8) of the Code, but Salary Compensation does not include any other amounts contributed pursuant to, or received under, any other plan of deferred compensation or other amounts which may be compensation
under section 3401(a) of the Code or otherwise. 
  
 2.21.    Termination of Employment means a Participant’s or former Participant’s separation from the service of the Company (including all affiliates of the Company) by reason of his
resignation, retirement, discharge or death. 
  
 2.22.    Valuation
Date means any Allocation Date and any other date as of which the value of Participants’ Accounts is determined. 
  
 Rules of Construction 
  
 2.23.    Governing
Law—Except to the extent preempted by ERISA, construction and operation of this Plan will be governed by the laws of the State of California. 
  
 2.24.    Undefined Terms—unless the context clearly requires another meaning, any term not specifically
defined in this Plan is used in the sense given to it by the Qualified Plan. 
  
 2.25.    Headings—the headings of Articles, Sections and Subsections are for reference only and are not to be utilized in construing the Plan. 
  
 2.26.    Gender—unless clearly inappropriate, all pronouns of whatever
Gender refer indifferently to persons or objects of any gender. 
 

 5 

  
 2.27.    Singular and
Plural—unless clearly inappropriate, singular terms refer also to the plural number and vice versa. 
  
 2.28.    Severability—if any provision of this Plan is held illegal or invalid for any reason, the remaining provisions are to remain in full force and effect and are to be construed and
enforced in accordance with the purposes of the Plan as if the illegal or invalid provision did not exist. 
  
 ARTICLE 3

  
 3.    PARTICIPATION IN THE PLAN 
  
 3.1.    Commencement of Participation.    An employee of the
Company becomes a Participant on the first Entry Date following the date on which he becomes an Eligible Employee, provided he has made a Written Election in accordance with the terms of Section 3.3 below. 
  
 3.2.    Cessation of Participation.    If a Participant
ceases to satisfy the conditions set forth in Section 3.1, his participation in this Plan terminates immediately, except that his Account will continue to be held for his benefit and will be distributed to him in accordance with the provisions of
Article 6. He may resume participation as of any Entry Date on which he again satisfies the conditions of Section 3.1. 
  
 3.3.    Written Election by Participant.    Each Eligible Employee shall submit to the Committee a Written Election prior to the last day of the third quarter of
the Corporate Fiscal Year for which he will be a Participant or, in the case of the Plan Year that includes the date on which the Plan is adopted, not later than thirty (30) days after such adoption; provided that in no event shall a Written
Election be submitted later than December 31 of the year prior to the year for which Salary Compensation and/or Bonus Compensation is to be deferred. 
  
 3.3.1.    Such Written Election shall be made on the form made available by the Committee and shall set forth: 

 
 (A)    his participation in this Plan under the terms hereof; 

 
 (B)    the amount of Salary Compensation and/or Bonus Compensation the Eligible
Employee has determined to defer under this Plan for the Plan Year, pursuant to Section 4.1 below; 
  
 (C)    the investment vehicles into which the Participant elects to have his Compensation Reduction Accrual Account deemed invested and the percentage of the account allocated to each elected investment
vehicle; and 
  
 (D)    the form in which his benefit is to be
distributed upon termination of service. 
 

 6 

  
 3.3.2.    A Participant may change a
submitted Written Election in accordance with the following: 
  
 (A)    A
Participant may change the investment vehicle(s) and the percentage of his Compensation Reduction Accrual Account allocated to each investment vehicle by completing and submitting any form or forms required by the Committee. Changes submitted to the
Committee more than fifteen (15) days prior to the end of a calendar month shall be effective on the first day of the following calendar month. Changes submitted less than fifteen (15) days prior to the end of a calendar month shall become effective
on the first day of the calendar month that is fifteen (15) or more days following delivery of the form to the Committee. 
  
 (B)    A Participant may change the form of distribution by submitting a new Written Election to the Company, provided that such change is submitted at least one hundred eighty (180) days prior to
the commencement of distributions or, in the event of Disability, at any time on or after the determination of Disability has been approved by the Committee. 
  
 ARTICLE 4 
  
 4.    CONTRIBUTIONS AND ALLOCATIONS 
  
 4.1.    Participant Contributions.    A Participant may elect to defer a portion of his Salary Compensation and/or Bonus Compensation for each Plan Year. The amount
deferred must be expressed as a percentage in whole numbers, of such Salary or Bonus Compensation. The Committee shall determine from time to time the minimum and maximum annual deferrals permitted for each Participant; provided, however, that the
maximum annual deferral limitation for Salary Compensation is 85% of such Salary Compensation and, for Bonus Compensation, 100% of such Bonus Compensation. The minimum deferral a Participant must defer is $10,000. 
  
 4.2.    Establishment of Accounts.    The accounts specified
in this Article 4 are established under the Plan to record the liability of the Company to Participants. All accounts are maintained on the books of the Company, and the Company is under no obligation to segregate any assets to provide for these
liabilities; provided, however, that the Company may create a grantor trust in accordance with Section 8.5.2. 
  
 4.2.1.    Compensation Reduction Accrual Accounts.    A Compensation Reduction Accrual Account is maintained for each Participant for the purpose of recording the current
value of his Compensation Reduction Accruals. 
 

 7 

  
 4.3.    Valuation of Accounts.

  
 4.3.1.    Timing of
Valuation.    All Accounts are valued as of each Allocation Date and as of any other Valuation Date fixed by the Committee. 
  
 4.3.2    Method of Valuing Accounts. 
  
 (A)    Allocation of Participant Contributions.    All salary amounts which a Participant
elects to defer under the terms of this Plan shall be allocated to his Compensation Reduction Accrual Account on the last day of the month in which the pay date occurs. All annual bonus amounts which a Participant elects to defer under the terms of
this Plan shall be allocated to his Compensation Reduction Accrual Account on the day that the annual bonus payment actually occurs. 
  
 (B)    Credited Earnings.    The amount credited to the Compensation Reduction Accrual Account of each Participant shall be deemed to be
invested in investment vehicles as may be selected by the Committee in its sole discretion and the Committee shall not be obliged to make any investment directed pursuant to Section 3.3.1., the purpose of such deemed investment directions being to
establish a method of adjusting each Participant’s Compensation Reduction Accrual Account in order to determine the amount that may ultimately be distributed hereunder. As of the last day of each month, a Participant’s Compensation
Reduction Accrual Account shall be increased to reflect the additions credited to the Participant as a result of such deemed investments, determined as if the investments had actually been made and shall be charged with a reasonable estimate of the
amount of expenses that would have been incurred had such investments actually been made. 
  
 (C)    Deductions.    A Participant’s Compensation Reduction Accrual Account shall be decreased by any distributions made with respect to the Participant pursuant to
Article 6. 
  
 (D)    Investment
Risk.    By electing to participate in this Plan, the Participant agrees on behalf of himself and his Beneficiaries to assume all risk in connection with any increase or decrease in the value of the investments which are
deemed to be held in his Account. 
 

 8 

  
 ARTICLE 5 
  
 5.    VESTING.    A Participant’s interest in his Account is vested when it is not subject to forfeiture
for any reason. Subject to Section 6.12, a Participant’s interest in his Compensation Reduction Accrual Account is fully (100%) vested at all times. 
  
 ARTICLE 6 
  
 6.    DISTRIBUTIONS TO PARTICIPANTS 
  
 6.1.    Termination of Employment Benefit.    Distribution of benefits will be made or commence, whichever is applicable, as soon as reasonably practicable after the first
day of the second Plan Year following the Plan Year in which the Participant incurs a Termination of Employment. 
  
 6.1.1.    Manner of Distribution.    Each Written Election must specify in what form benefits accrued under the Plan will be distributed to the Participant. Available forms
of distribution include: 
  
 (A)    lump sum; 
  
 (B)    annual installments paid over three (3) years; 
  
 (C)    annual installments paid over five (5) years; 
  
 (D)    annual installments paid over ten (10) years; or 
  
 (E)    annual installments paid over fifteen (15) years. 
  
 Notwithstanding any prior Written Election by a Participant, if a Participant incurs a delayed distribution pursuant to Section 8.6, the
distribution to such Participant will only be made in annual installments paid over five (5) years. 
  
 6.1.2.    Interest Accrual.    If the form of distribution is in annual installments, the Participant’s Account will continue to be deemed invested in the investment
vehicles elected by the Participant and the annual installment payments will be adjusted to reflect the earnings of such deemed investments. 
  
 6.2.    Disability Benefit.    If a Participant becomes disabled as defined in Section 2.12, distribution of benefits will commence as soon
as reasonably practicable after the Participant is disabled. Disability benefits will be paid according to the Participant’s Written Election. 
 

 9 

  
 6.3.    Survivor Benefits.

  
 6.3.1    If a Participant dies after a distribution has
commenced, his Beneficiary shall receive, as soon as practicable after the date of death, a distribution of the Participant’s entire benefit in a lump sum. 
  
 6.3.2    If a Participant dies before a distribution has commenced and the Company has not purchased a life insurance contract in
connection with such Participant’s benefit, the Company will pay the Participant’s Beneficiary an amount equal to the Participant’s current Account balance. Such benefit shall be distributed, as soon as practicable after the death of
the Participant, in a lump sum. 
  
 6.4.    Unplanned In-Service
Benefit.    A Participant may elect to receive his Account balance as an Unplanned In-Service Benefit, in any form of distribution permitted under Section 6.1.1, and commencing (or to be made) as soon as reasonably
practicable after the first day of the second Plan Year following the date of the election, by providing the Committee with a written election to do so. In consideration for receiving an Unplanned In-Service Benefit, such Participant shall
permanently forfeit an amount equal to ten (10%) of his Account balance and forego all future participation for the remainder of the Plan Year and the following Plan Year. 
  
 6.5.    Financial Hardship Benefit.    A Participant may request a distribution of a portion of
his Account as a Financial Hardship Benefit at any time by providing the Committee, to its satisfaction, with a written election to do so, proof of an unforeseeable financial hardship and proof that all other financial resources have been explored
and utilized. The amount of a Financial Hardship Benefit shall be limited to the lesser of the amount needed for the financial hardship or such Participant’s Account balance. In consideration for receiving a Financial Hardship Benefit, such
Participant shall forego all future participation for the remainder of the Plan Year and the following Plan Year. 
  
 6.6.    Change in Control Benefit.    In the case of a Change in Control as defined in Section 2.5, all Participant Accounts shall be distributed in a lump sum payment as
soon as administratively practicable. 
  
 6.7.    Type of Property
to be Distributed.    All distributions from the Plan to Participants and Beneficiaries shall be made in cash, unless the Committee determines that other property should be distributed. 
  
 6.8.    Election of Beneficiary 
  
 6.8.1.    Designation or Change of Beneficiary by
Participant.    When an Eligible Employee qualifies for participation in the Plan, the Committee will send him a Beneficiary designation form, on which he may designate one or more Beneficiaries and successor
Beneficiaries. A Participant may change his Beneficiary designation at any time by filing the prescribed form with the Committee and the consent of the Participant’s current Beneficiary is not required for a change of Beneficiary. No
Beneficiary
 
 

 10 

 
has any rights under this Plan except as are provided by its terms. The rights of a Beneficiary who predeceases the Participant who designated him immediately terminate, unless the Participant
has specified otherwise. 
  
 6.8.2.    Beneficiary if No Election is
Made.    Unless a different Beneficiary has been elected in accordance with Section 6.9.1, the Beneficiary of any Participant who is lawfully married on the date of his death is his surviving spouse of if no surviving
spouse, then surviving children shall be the beneficiary. The Beneficiary of any other Participant who dies without having designated a Beneficiary is his estate. 
  
 6.9.    Nonalienability.    The rights of each Participant are not subject in any manner to
anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, attachment, or garnishment by creditors of the Participant or any Beneficiary. Neither the Participant nor Beneficiary may assign, transfer or pledge the benefits under this
Plan. Any attempt to assign, transfer or pledge a Participant’s benefits under this Plan is void. 
  
 6.10.    Dissolution of Marriage.    If a Participant is divorced prior to the commencement of his Annual Benefit, the former spouse of the Participant shall only be
entitled to receive a portion of the Participant’s Annual Benefit, if at all, at such time and in such form as the Participant is entitled to his Annual Benefit. Any rights of the former spouse are contingent upon the rights of the Participant
hereunder, and the former spouse shall not be entitled to accelerate distributions and shall not be entitled to any funds before they are available to the Participant, if at all, under the terms of the Plan. 
  
 6.11.    Income Recognition.    If it shall be determined by
a final administrative decision of the Internal Revenue Service (which is not appealed by the Participant) or by a final decision of a court of competent jurisdiction (which is not appealed by the Participant) that all or any part of the
Participant’s Account is includable in the income of the Participant prior to the actual receipt of such amount, the Committee shall make a special payment to such Participant, which shall, to that extent, discharge the Company’s
obligations under this Plan, in an amount equal to such Participant’s estimated federal, state and local income tax liabilities related to such inclusion and to the inclusion in income of such special payment; provided, that such special
payment shall not exceed the value of the Participant’s Account balance. The Participant shall have no obligation to appeal any determination made by the Internal Revenue Service or the decision of any such court. 
  
 6.12.    Manner of Payment.    Any payment to be made by the
Committee hereunder may be made by the Company’s check. Mailing to a person entitled to payment hereunder at the address of such person last furnished to the Company shall be adequate delivery of such payment for all purposes. If the
whereabouts of a person entitled to payment under the Plan cannot be determined after reasonable search by the Committee and such person’s whereabouts continue to be unknown for a period of three (3) years, the Committee may determine that such
person has died, and payment shall be made to such person’s Beneficiary or, if after a reasonable search by the Committee, no such Beneficiary shall be located, the Participant’s Account
 
 

 11 

 
under the Plan shall be forfeited. Any determination hereunder shall be final and binding on all persons under the Plan, and no interest or penalty shall be payable with respect to any payment
that cannot be delivered because a person’s whereabouts cannot be so determined or continue to be unknown. 
  
 ARTICLE 7 
  
 7.    AMENDMENT OR TERMINATION OF THE PLAN

  
 7.1    Committee’s Right to Amend or
Terminate Plan.    The Committee may, at any time and from time to time, amend, in whole or in part, any of the provisions of this Plan or may terminate it as a whole or with respect to any Participant or group of
Participants. Any such amendment or termination is binding upon all Participants and their Beneficiaries and all other parties in interest. 
  
 7.2    When Amendment or Termination Take Effect.    A resolution amending or terminating the Plan becomes effective as of the date
specified therein. 
  
 7.3    Restriction on Retroactive
Amendments.    No amendment may be made that retroactively deprives a Participant of any benefit accrued before the date of the amendment. 
  
 ARTICLE 8 
  
 8.     PLAN
ADMINISTRATION 
  
 8.1    The Administrative
Committee.    The Plan is administered by the Committee which consists of one or more persons appointed by the Chief Executive Officer. The Chief Executive Officer may remove any member of the Committee at any time, with
or without cause, and may fill any vacancy. If a vacancy occurs, the remaining member or members of the Committee have full authority to act. Any member of the Committee may resign by delivering his written resignation to the Chief Executive Officer
and the Committee. Any such resignation becomes effective upon its receipt by the Chief Executive Officer or on such other date as is agreed to by the Committee and the resigning member. The Committee acts by a majority of its members at the time in
office and may take action either by vote at a meeting or by consent in writing without a meeting. The Committee may adopt such rules and appoint such subcommittees, as it deems desirable for the conduct of its affairs and the administration of the
Plan. If, at any time, the Chief Executive Officer of the Company has been determined to be incapacitated by the Committee, the Chief Operating Officer of the Company shall succeed to the functions set forth herein of the Chief Executive Officer.

  
 8.2    Powers of the
Committee.    In carrying out its duties with respect to the general administration of the Plan, the Committee has, in addition to any other powers conferred by the Plan or by law, the following powers: 

 12 

  
 (a)    to determine all questions relating to
eligibility to participate in the Plan; 
  
 (b)    to compute the amount and kind
of distributions payable to Participants and their Beneficiaries; 
  
 (c)    to maintain all records necessary for the administration of the Plan; 
  
 (d)    to interpret the provisions of the Plan and make any and all determinations arising thereunder, such interpretations and determinations to be final, conclusive and binding on all Participants and
Beneficiaries hereunder; 
  
 (e)    to establish and modify the method of
accounting for the Plan; 
  
 (f)    to employ counsel, accountants and
other consultants to aid in exercising its powers and carrying out its duties hereunder; and 
  
 (g)    to perform any other acts necessary and proper for the administration of the Plan. 
  
 8.3    Indemnification 
  
 8.3.1    Indemnification of Members of the Committee by the Company.    The Company agrees to indemnify and hold harmless each member of the Committee against any and all
expenses and liabilities arising out of his action or failure to act in such capacity, excepting only expenses and liabilities arising out of his own willful misconduct or gross negligence. This right of indemnification is in addition to any other
rights to which any member of the Committee may be entitled. 
  
 8.3.2    Liabilities for which Members of the Committee are Indemnified.    Liabilities and expenses against which a member of the Committee is indemnified hereunder
include, without limitation, the amount of any settlement or judgment, costs, counsel fees and related charges reasonably incurred in connection with a claim asserted or a proceeding brought against him or the settlement thereof. 

 
 8.3.3.    Company’s Right to Settle
Claims.    The Company may, at its own expense, settle any claim asserted or proceeding brought against any member of the Committee when such settlement appears to be in the best interests of the Company. 

 
 8.4.    Claims Procedure.    Any Participant or
Beneficiary who believes that he is being denied a benefit to which he is entitled under the Plan and who wishes to request review of a claim for benefits, or who wishes an explanation of a benefit or its denial, may direct to the Committee a
written request for such review. The Committee shall respond to the request by issuing a notice to the claimant as soon as possible, but in no event later than ninety (90) days from the date of the request. This notice furnished by the Committee
shall be written in a manner calculated to be understood by the claimant and shall include the following: 
 

 13 

  
 ·    The specific reason or reasons for any denial of benefits; 
  
 ·    The specific
Plan provisions on which any denial is based; 
  
 ·    A description of any further material or information which is necessary for the claimant to perfect his claim and an explanation of why the
material or information is needed; and 
  
 ·    An explanation of the Plan’s claim appeals procedure. 
  
 If the claimant does not respond to the notice, posted by first-class mail to the address of record of the Committee, within sixty (60) days from the posting of the notice,
the claimant shall be considered satisfied in all respects. If the Committee fails to respond to the claimant’s written request for a review, the claimant shall be entitled to proceed to the claim appeals procedure described in the next
paragraph. 
  
 In the event that the claimant wishes to appeal the claim review denial, the claimant or his duly
authorized representative may submit to the Committee, within sixty (60) days of the receipt of the notice, a written notification of appeal of the claim denial. The notification of appeal of the claim denial shall permit the claimant or his duly
authorized representative to utilize the following claim appeals procedures: 
  
 ·    To review pertinent documents; and 
  
 ·    To submit
issues and comments in writing to which the Committee shall respond. 
  
 The Committee shall furnish a written
decision on the appeal no later than sixty (60) days after receipt of the notification of appeal, unless special circumstances require an extension of the time for processing the appeal. In no event, however, shall the Committee respond later than
one hundred twenty (120) days after a request for an appeal. The decision on appeal shall be in writing and shall include specific reasons for the decision, and shall be written in a manner calculated to be understood by the claimant and contain
specific reference to the pertinent Plan provisions on which the decision is based. 
  
 8.5.    Deferred Compensation As An Unsecured Promise 
  
 8.5.1.    No Segregation.    The Company shall not be required to segregate any funds representing the Accounts of Participants hereunder, and nothing in this Plan shall be
construed as providing for such segregation. 
 

 14 

  
 8.5.2.    Creation of
Trust.    The Company may create a grantor trust (within the meaning of Section 671 of the Code) in connection with the adoption of this Plan to which it may from time to time make contributions. Notwithstanding any
creation of such a trust, the benefits hereunder shall be a general obligation of the Company. Payment of benefits from such trust shall, to that extent, discharge the Company’s obligations under this Plan. All payments provided for under this
Plan not so discharged shall be paid in cash from general assets of the Company. 
  
 8.5.3.    Reliance.    Nothing in this Plan, and no action taken pursuant to its terms, shall create or be construed to create a trust or escrow account of any kind, or a
fiduciary relationship between the Committee or the Company and any Participant or any other person. The Participants shall rely solely on the unsecured promise of the Company to make the payments required hereunder, but shall have the right to
enforce such a claim in the same manner as any unsecured general creditor of the Company. 
  
 8.5.4.    Insurance Policies.    In the event that, in its discretion, the Company purchases an insurance policy or policies insuring the life of a Participant to allow the
Company to recover the cost of providing benefits, in whole or in part, hereunder, neither the Participant nor his Beneficiary shall have any rights therein or in the proceeds therefrom. The Company shall be the sole owner and beneficiary of any
such insurance policy and shall possess and exercise all incidents of ownership therein. 
  
 8.6.    Delayed Distributions.    Notwithstanding any other provision of this Plan, all rights to a Participant’s Account, and to any payments hereunder, shall be
delayed until the second anniversary of the date of termination, if any one of the following circumstances occur: 
  
 ·    the Participant is discharged from employment with the Company for “cause;” or

  
 ·    the Participant violates the non-competition and non-disclosure agreements previously entered into with the Company. 
  
 For purposes of this Plan, the Participant shall be deemed terminated for cause if the Company terminates the Participant, or the Participant terminates his
employment, after the Participant shall have committed any felony relating to the Company or its property, including, but not limited to, a felony involving fraud, theft, misappropriation, dishonesty, or embezzlement. 
 

 15 

  
 ARTICLE 9 
  
 9.    MISCELLANEOUS 
  
 9.1    Plan not a Contract of Employment.    The adoption and maintenance of the Plan does not constitute a contract between the Company and
any Participant or to be consideration for the employment of any person. Nothing herein contained gives any Participant the right to be retained in the employ of the Company or derogates from the right of the Company to discharge any Participant at
any time without regard to the effect of such discharge upon his rights as a Participant in the Plan. 
  
 9.2    No Rights Under Plan Except as Set Forth Herein. Nothing in this Plan, express or implied, is intended, or shall be construed, to confer upon or give to any person, firm, association,
or corporation, other than the parties hereto and their successors in interest, any right, remedy, or claim under or by reason of this Plan or any covenant, condition, or stipulation hereof, and all covenants, conditions and stipulations in this
Plan, by or on behalf of any party, are for the sole and exclusive benefit of the parties hereto. 
  
 9.3    Withholding.    The Company retains the right to deduct and withhold from any payments made hereunder all sums which it then may be required to deduct or withhold
pursuant to any applicable tax, statute, law, regulation, or order of any jurisdiction whatsoever. 
  
 9.4    Obligations to the Company.    If a Participant becomes entitled to a distribution of benefits under the Plan, and if at such time the Participant has outstanding
any debt, obligation, or other liability representing an amount owed to the Company, the payment to the Participant or his Beneficiary shall be reduced by, or set off against, the amount of such indebtedness or claim, and the Participant, as a
condition of participation hereunder, consents to such set-off. In addition to the foregoing, the payment to a Participant or his Beneficiary also shall be reduced by the Company’s costs and expenses, including reasonable attorneys’ and
accountants’ fees, incurred in defending any claim for benefits brought against it by such Participant or Beneficiary. 
  
 9.5    Notice.    Any notice required or permitted to be made under the Plan shall be sufficient if in writing and hand delivered, or sent
by registered or certified mail, to (i) in the case of notice to the Company or the Committee, the principal office of the Company, directed to the attention of the Committee, and (ii) in the case of a Participant or Beneficiary, the
Participant’s (or Beneficiary’s) mailing address maintained in the Company’s personnel records. Such notice shall be deemed given
 
 

 16 

 
as of the date of delivery or, if delivery is made by mail, as of the date shown on the receipt for registration or certification. 
  
 9.6    No Loans.    The account balances in the plan are not available for loans. The amounts
cannot be pledged as collateral for loans from third parties. 
  
 9.7    FICA Withholding.    Although not subject to state or federal income tax withholding at time of deferral, such deferrals are subject to FICA tax withholding. FICA
tax withholding on amounts deferred will be withheld from compensation paid to the participant. 
  
 IN WITNESS WHEREOF, Applied Micro
Circuits Corporation has caused this Plan to be executed by its duly authorized officer on April     , 2002. 
  
 APPLIED MICRO CIRCUITS CORPORATION 
  
 By:                                     
                                        
                    
  
 Its:                                    
                                        
                     
 

 17

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