Document:

Appliog, Inc. 2003 Stock Option Plan

 Execution Copy 
  
 Exhibit 4.1 
  
 APPILOG, INC. 
  
 2003 STOCK OPTION PLAN 
  
 EFFECTIVE: NOVEMBER 25, 2003 
  

 APPILOG, INC. 
  
 2003 STOCK OPTION PLAN 
  

	 	1.	Purpose 

  
 Appilog, Inc. (the “Company”) desires to attract and retain the best available talent and encourage the highest level of
performance by employees and other persons who perform services for the Company in order to serve the best interests of the Company and its stockholders. By affording eligible persons the opportunity to acquire proprietary interests in the Company
and by providing them incentives to put forth maximum efforts for the success of the Company’s business, the Appilog, Inc. 2003 Stock Option Plan (the “Plan”) is expected to contribute to the attainment of those objectives. The
Plan also includes a special appendix, attached as Schedule A hereto, as an integral part of the Plan, for the benefit of the employees of the Company’s Israeli subsidiary. 
  

	 	2.	Options and Shares of Common Stock Subject to the Plan 

  
 Option grants under the Plan may be granted in the form of (i) incentive stock options (“incentive stock options”) as provided in Section
422 of the Internal Revenue Code of 1986, as amended (the “Code”), to purchase shares of the common stock, par value $0.0001 per share, of the Company (the “Common Stock”); (ii) options to purchase shares of Common
Stock which are not intended to qualify as incentive stock options (“non-qualified options”) (unless otherwise indicated, references in the Plan to “options” include incentive stock options and non-qualified
options); or (iii) any combination of the foregoing as the Committee (as defined in Section 3(a)) shall determine. The maximum aggregate number of shares of Common Stock as to which options may be granted from time to time under the Plan is
68,162,592 shares, subject to adjustment as provided in Section 11. The shares available may be in whole or in part, as the Board of Directors of the Company (the “Board of Directors”) shall from time to time determine, authorized
but unissued shares or issued shares reacquired by the Company. Unless otherwise provided by the Committee, shares covered by expired or terminated options will be available for subsequent option grants under the Plan. Any shares issued by the
Company in respect of the assumption or substitution of outstanding options from a corporation or other business entity by the Company shall not reduce the number of shares available for option grants under the Plan. 
  

	 	3.	Administration 

  
 (a) The Plan shall be administered by a committee (the “Committee”) consisting of not less than two members of the Board of Directors who
are selected by the Board of Directors. The term Committee shall refer to the Board of Directors if at any time no committee of the Board of Directors is constituted to administer the Plan. 
  

 (b) The Committee shall have plenary authority in its discretion, subject to and not inconsistent with
the express provisions of the Plan (i) to grant options, (ii) to determine the purchase price of the shares of Common Stock covered by each option, (iii) the term of each option, (iv) the persons to whom, and the time or times at which options shall
be granted, (v) the number of shares to be covered by each option, (vi) to designate options as incentive stock options or non-qualified options, (vii) to interpret the Plan, (viii) to prescribe, amend and rescind rules and regulations relating to
the Plan, (ix) to determine the terms and provisions of the option agreements as described in Section 16 (which need not be identical), and (x) to make all other determinations deemed necessary or advisable for the administration of the Plan. Except
to the extent prohibited by any applicable law, rule or regulation, including, without limitation, the requirements applicable under Section 162(m) of the Code to any option granted under the plan intended to be “qualified performance-based
compensation,” or the requirements for any award granted under the Plan to an officer or director to be covered by any exemptive rule under Section 16 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)
(including Rule 16b-3, or any successor rule, as the same may be amended from time to time), the Committee may delegate to one or more of its members or to one or more agents such administrative duties as it may deem advisable, and the Committee or
any person to whom it has delegated duties as aforesaid may employ one or more persons to render advice with respect to any responsibility the Committee or such person may have under the Plan. 
  
 (c) The Committee may employ attorneys, consultants, accountants or other
persons and the Committee, the Company and its officers and directors shall be entitled to rely upon the advice, opinions or valuations of any such persons. The Committee shall have full discretionary authority in all matters related to the
discharge of its responsibilities and the exercise of its authority under the Plan. All actions taken and all interpretations, decisions and determinations made by the Committee in good faith shall be final and binding upon all persons who have
received option grants, the Company and all other interested persons. No member or agent of the Committee shall be personally liable for any action, determination or interpretation taken or made in good faith with respect to the Plan or option
grants made thereunder, and all members and agents of the Committee and the Board of Directors shall be fully indemnified and protected by the Company in respect of any such action, determination or interpretation. 
  
 (d) Subject to the Company’s decision to the contrary, each member of
the Board of Directors and the Committee shall be indemnified and held harmless by the Company against the cost or expense (including attorneys’ fees) reasonably incurred by him, or any liability (including any sum paid in settlement of a claim
with the approval of the Company) arising out of any act or omission to act on connection with the Plan, unless arising out of such member’s own fraud or bad faith, to the extent permitted by applicable law. Such indemnification shall be in
addition to any rights or indemnification the member may have as a director or otherwise under the Company’s Certificate of 

  

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Incorporation or bylaws, any agreement, any vote of stockholders or disinterested directors, insurance policy or otherwise. 
  

	 	4.	Eligibility; Factors to be Considered in Granting Options 

  
 (a) Subject to the limitations on the granting of options otherwise set forth in the Plan, option grants will be limited to employees and directors
(whether or not also employees) of the Company or a Subsidiary (as defined in the last sentence of this Section 4(a)) and to individuals who are not employees but who provide services to the Company or a Subsidiary or to companies which provide
services to the Company, but only to the extent any such non-employees or companies (i) provide bona fide services to the Company or a Subsidiary; and (ii) provide services that are not in connection with the offer or sale of the
Company’s or a Subsidiary’s securities in a capital-raising transaction, and do not directly or indirectly promote or maintain a market for the Company’s or a Subsidiary’s securities (such service providers who are neither
employees nor directors are referred to in the Plan as “consultants”); provided, however, that the issuance of options hereunder to any non-individual shall only be permitted where the issuance thereof shall not require any
registration or filing with under any federal or state securities law. In determining the eligible individuals to whom options shall be granted and the number of shares to be covered by each option, the Committee shall take into account the nature
of the individuals’ duties, their present and potential contributions to the success of the Company and such other factors as it shall deem relevant in connection with accomplishing the purposes of the Plan. An eligible individual who has been
selected by the Committee to participate in the Plan and who holds an outstanding option under the Plan is referred to in the Plan as an “optionee.” As used in the Plan, “Subsidiary” shall mean any present or future
corporation which is or would be a “subsidiary corporation” of the Company as such term is defined in Section 424(f) of the Code. 
  
 (b) Option grants may be granted singly, in combination or in tandem and may be made in combination or in tandem with, in replacement of, or as
alternatives to, awards or grants under any other employee plan maintained by the Company and/or any Subsidiary. No incentive stock option shall be granted to any individual otherwise eligible to participate in the Plan who is not an employee of the
Company or a Subsidiary on the date of granting of such option. An optionee who has been granted an option or options under the Plan may be granted additional options, subject to such limitations as may be imposed by the Code on the grant of
incentive stock options. No grant of incentive stock options (under the Plan and any other “incentive stock option” plans of the Company, any Subsidiary and any “parent corporation” of the Company within the meaning of Section
424(e) of the Code) shall result in the aggregate fair market value of Common Stock with respect to which “incentive stock options” (within the meaning of Section 422 of the Code, but without regard to subsection (d) of such Section) are
exercisable for the first time by any employee during any calendar year (determined at the time the incentive stock option is granted) exceeding $100,000.  
  

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 (c) The adoption of the Plan shall not be deemed to give any employee of the Company or any Subsidiary or
any other person any right to be selected to participate in the Plan or to be granted an option under the Plan. No person shall have any rights or claims under the Plan except in accordance with the provisions of the Plan and the applicable option
agreement. 
  

	 	5.	Purchase Price 

  
 (a) The purchase price of a share of the Common Stock covered by each option shall be determined by the Committee, but, subject to Section 5(b) and unless
otherwise set forth in the applicable option agreement, shall not be less than 100% of the fair market value (as hereinafter defined, the “Market Value”) of a share of the Common Stock on the date the option is granted, and such
purchase price shall not be reduced, by action of the Committee or the Board of Directors or otherwise, at any time after the date an option is granted (subject to Section 11(a)). For purposes of the Plan, the Market Value of a share of Common Stock
shall be the closing price for a share of Common Stock on the date of the determination, or if such date is not a trading day, then on the most recently preceding trading day; provided, however, that for purposes of any incentive stock
options granted under the Plan, such Market Value shall be determined subject to Section 422(c)(7) of the Code. The closing price for a share of Common Stock shall be: (a) if the Common Stock shall be listed or admitted to trading on any national
securities exchange, the average of the last reported sales prices on the specified days (or if there is no reported sale on any such trading date, the average of the closing bid and asked prices on such trading date); (b) if the Common Stock is not
traded or admitted to trading on any national securities exchange, the closing price, if reported, or if the closing price is not reported, the average of the closing bid and asked prices, as reported by The Nasdaq Stock Market® or similar source or, if no such source exists, as
furnished by two members of the National Association of Securities Dealers, Inc., selected by the Committee for that purpose, on the specified dates; or (c) if the Common Stock is not traded or admitted to trading on any national securities exchange
or The Nasdaq Stock Market®, the closing price on
such dates as determined in good faith by the Committee or the Board of Directors. The Committee shall determine the date on which an option under the Plan is granted, provided that such date is consistent with the Code and any applicable
rules or regulations thereunder. In the absence of such determination, the date on which the Committee adopts a resolution granting an option shall be considered the date on which such option is granted, provided the optionee to whom the
option is granted is promptly notified of the grant and an option agreement is duly executed as of the date of the resolution. The purchase price shall be subject to adjustment as provided in Section 11(a). 
  
 (b) No incentive stock option shall be granted to an employee under the Plan
who owns (within the meaning of Section 424(d) of the Code), at the time the option is granted, more than 10% of the total combined voting power of all classes of stock of the Company or a Subsidiary or any “parent corporation” of the
Company within the meaning of Section 424(e) of the Code. This restriction does not apply if at the time 

  

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such incentive stock option is granted the option exercise price per share of Common Stock subject to the option is at least 110% of the Market Value of a
share of Common Stock on the date such incentive stock option is granted, and the incentive stock option by its terms is not exercisable after the expiration of five years from such date of grant.  
  

	 	6.	Terms of Option Grants 

  
 The term of each option granted under the Plan shall be determined by the Committee and set forth in the option agreement evidencing such option,
provided, however, that, subject to Section 5(b) and earlier termination as provided in Sections 9 and 10, no option shall be exercisable after 10 years from the date such option was granted. 
  

	 	7.	Exercise; Loans 

  
 (a) Subject to the provisions of the Plan, an option granted under the Plan shall become vested and exercisable as determined by the Committee and set
forth in the option agreement evidencing such option. The Committee may, in its discretion, determine as a condition of any option, that all or a stated percentage of the option shall only become exercisable, in installments or otherwise, after
completion of a specified period of service with the Company and the Subsidiaries or subject to any other condition or conditions. 
  
 (b) The Committee may also, in its discretion, accelerate the exercisability of any options at any time and provide, in any option agreement, that the
option shall become immediately exercisable as to all or any portion of the shares of Common Stock remaining subject to the option on or following (i) a Change of Control (as defined in this Section), (ii) the termination by the optionee of his or
her employment for Good Reason (as defined in this Section) or the termination of the optionee’s employment by the Company without Cause (as defined in this Section) or (iii) as otherwise determined by the Committee. The date, after the
occurrence of a Change of Control, upon which such a termination occurs shall be referred to herein as an “acceleration date”. For the purposes of the Plan, the following terms shall be defined as follows: 
  
 “Cause” shall mean (i) the continuing failure, as determined
by the Company acting in good faith, of the optionee to render services to the Company in accordance with the optionee’s assigned duties, and such failure of performance continues for a period of more than 30 days after written notice thereof
has been provided to the optionee by the Company; (ii) willful misconduct or gross negligence of the optionee in the performance of his or her duties and services to the Company or any of its subsidiaries; (iii) the conviction of the optionee of a
felony, whether or not committed in the course of performing services for the Company or any of its subsidiaries; (iv) deliberate dishonesty, breach of fiduciary duty or breach of the material terms of any employment, noncompetition, nondisclosure
or other agreement between the optionee and the Company; (v) the commission by the optionee in the course of performing any services for the Company or any of its subsidiaries of embezzlement, theft or any other fraudulent 

  

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act; (vi) the unauthorized disclosure by the optionee of any material trade secret or material confidential information of the Company or any of its
subsidiaries; or (vii) the commission by the optionee of an act which constitutes unfair competition with the Company or any of its subsidiaries, including, without limitation, inducing any employee or customer of the Company to breach a contract
with the Company or any of its subsidiaries. 
  
 A “Change
of Control” shall be deemed to have occurred as of the first day any one or more of the following conditions shall have been satisfied: 
  

	 	(i)	any individual, corporation (other than the Company or any Subsidiary), partnership, trust, association, pool, syndicate, or any other entity or any group of persons acting in
concert (other than any employee benefit plan (or any trust forming a part thereof) of the Company or any Subsidiary) becomes the beneficial owner, as that concept is defined in Rule 13d-3 promulgated by the Securities and Exchange Commission under
the Exchange Act of securities of the Company possessing either (X) 50% or more of the voting power for the election of directors of the Company or (Y) 50% or more in value of the outstanding equity securities (or the right to acquire 50% or more)
of the Company; 

  

	 	(ii)	there shall be consummated any consolidation, merger, or other business combination involving the Company or the securities of the Company in which (X) holders of voting securities
of the Company immediately prior to such consummation own, as a group, immediately after such consummation, voting securities of the Company (or, if the Company does not survive such transaction, voting securities of the corporation surviving such
transaction) having less than 50% of the total voting power in an election of directors of the Company (or such other surviving corporation) or (Y) holders of equity securities of the Company immediately prior to such consummation own, as a group,
immediately after such consummation, equity securities of the Company (or, if the Company does not survive such transaction, voting securities of the corporation surviving such transaction) having less than 50% of the equity securities of the
Company (or such other surviving corporation); 

  

	 	(iii)	during any period of two consecutive years, individuals who at the beginning of such period constitute the directors of the Company cease for any reason other than voluntary
resignation, death, disability or retirement to constitute at least a majority thereof unless the election, or the nomination for election by the Company’s shareholders, of each new director of the Company was approved by a vote of at least
two-thirds of the directors of the Company then still in office who were directors of the Company at the beginning of any such period; or 

  

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	 	(iv)	there shall be consummated any sale, lease, exchange, or other transfer (in one transaction or a series of related transactions) of all, or substantially all, of the assets of the
Company (on a consolidated basis) to a party which is not controlled by or under common control with the Company. 

  
 “Good Reason” shall exist if any one of the following events occur: 
  

	 	(i)	a significant adverse change, without the optionee’s written consent, in the optionee’s working conditions or status, including but not limited to a significant change in
the nature or scope of the optionee’s authority, powers, functions, duties, or responsibilities; 

  

	 	(ii)	the optionee’s base salary for any fiscal year is less than 100% of the rate of base salary paid to the optionee’s in the completed fiscal year immediately preceding the
Change of Control, or if the optionee’s total cash compensation opportunities, including salary and incentives, for any fiscal year are less than 100% percent of the total cash compensation opportunities made available to the optionee in the
completed fiscal year immediately preceding the Change of Control; 

  

	 	(iii)	the failure of the Company or its Subsidiaries to continue in effect any benefits or perquisites, or any pension, life insurance, medical insurance or disability plan in which the
optionee was participating immediately prior to the Change of Control unless the Company provides the optionee with a plan or plans that provide substantially similar benefits, or the taking of any action by the Company that would adversely affect
the optionee’s benefit under any of such plans or deprive the optionee of any material fringe benefit enjoyed by the optionee immediately prior to the Change of Control; 

  

	 	(iv)	any purported termination of the optionee’s employment by the Company for Cause which is not effected in compliance with the procedures set forth in the definition of Cause
above; or 

  

	 	(v)	an attempt by the Company or any Subsidiary to relocate the optionee to, or to require the optionee to perform regular services at, any location that is more than seventy-five (75)
miles from the location at which the optionee was regularly performing services prior to the Change of Control. 

  

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 (c) An option may be exercised at any time or from time to time (subject, in the case of an incentive
stock option, to such restrictions as may be imposed by the Code), as to any or all full shares of Common Stock as to which the option has become exercisable. Notwithstanding the foregoing provision, no option may be exercised without the prior
consent of the Committee by an employee who is subject to Section 16(b) of the Exchange Act until the expiration of six months from the date of the grant of the option. 
  
 (d) The purchase price of the shares as to which an option is exercised shall be paid in full to the Company at the time of
exercise; payment may be made (i) in cash, which may be paid by check, or other instrument acceptable to the Company; (ii) with the consent of the Committee, and subject to such terms and conditions as it may determine, by delivery of shares of the
Common Stock which have been owned by the optionee exercising such option for more than six months (or such longer or shorter period of time required to avoid a charge to earnings for financial accounting purposes), valued at the Market Value on the
date of exercise, or (iii) at the discretion of the Committee, in accordance with a cashless exercise program (through broker accommodation), if any, established by the Committee. In addition, the optionee exercising such option shall promptly pay
to the Company in cash any amount necessary to satisfy all applicable federal, state or local tax requirements (and in no event shall Common Stock be delivered with respect to such option until all such amounts have been fully paid to the Company).
The Committee may permit such amount to be paid in shares of Common Stock previously owned by the optionee for more than six months prior to such payment (or such longer or shorter period of time required to avoid a charge to earnings for financial
accounting purposes), or a portion of the shares of Common Stock that otherwise would be distributed to such optionee upon exercise of the option (provided, however, that the amount of any Common Stock so withheld shall not exceed the amount
necessary to satisfy the Company’s or any Subsidiary’s required tax withholding obligations using the minimum statutory withholding rates for Federal, state, local and foreign tax purposes, including payroll taxes, that are applicable to
supplemental taxable income), in either case, based on the Market Value of such shares on the date of payment, as determined by the Committee, or a combination of cash and shares of such Common Stock. The Company or a Subsidiary shall, to the extent
permitted by law, have the right to deduct any such taxes from any payment of any kind otherwise due to such optionee. 
  
 (e) Except as provided in Sections 8, 9 and 10, no options may be exercised at any time unless the holder thereof is then an employee of or performing
services for the Company or one of its Subsidiaries. 
  
 (f) Upon,
but not until, the exercise of an option or portion thereof in accordance with the Plan, the applicable option agreement and such rules and regulations as may be established by the Committee, the holder thereof shall have the rights of a stockholder
with respect to the shares issued as a result of such exercise. 
  

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 (g) The Company may make loans to such optionees as the Committee, in its discretion, may determine
(including a holder who is a director or officer of the Company) in connection with the exercise of options granted under the Plan; provided, however, that the Committee shall not authorize the making of any loan where the possession of such
discretion or the making of such loan would result in a “modification” (as defined in Section 424 of the Code) of any incentive stock option. Such loans shall be subject to the following terms and conditions and such other terms and
conditions as the Committee shall determine not inconsistent with the Plan. Such loans shall bear interest at such rates as the Committee shall determine from time to time, which rates may be below then current market rates (except in the case of
incentive stock options). In no event may any such loan exceed the fair market value, at the date of exercise, of the shares covered by the option, or portion thereof, exercised by the holder. No loan shall have an initial term exceeding five years,
but any such loan may be renewable at the discretion of the Committee. When a loan shall have been made, shares of Common Stock having a fair market value at least equal to the principal amount of the loan shall be pledged by the holder to the
Company as security for payment of the unpaid balance of the loan. Every loan shall comply with all applicable laws, regulations and rules of the Board of Governors of the Federal Reserve System and any other governmental agency having jurisdiction.

  

	 	8.	Transferability of Options 

  
 (a) Except as otherwise provided in this Section 8, options granted under the Plan shall not be transferable otherwise than by will or the laws of descent
and distribution, and may be exercised during the lifetime of the optionee who received such option only by such optionee. 
  
 (b) No transfer of any options by will or the laws of descent and distribution shall be effective to bind the Company unless the Committee shall have been
furnished with (i) written notice thereof and with a copy of the will and/or such evidence as the Committee may deem necessary to establish the validity of the transfer and (ii) an agreement by the transferee to comply with all the terms and
conditions of the option grant that are or would have been applicable to the employee to whom the option was granted and to be bound by the acknowledgments made by the employee in connection with the grant of the option. 
  
 (c) With the approval of the Committee and subject to such conditions as the
Committee may prescribe, an optionee may, upon providing written notice to the Secretary of the Company, elect to transfer any or all such optionee’s non-qualified options to such optionee’s spouse, children, grandchildren and the spouses
of children and grandchildren or to trusts for the benefit of the optionee and/or any of the foregoing family members of the optionee or to partnerships in which the optionee and/or such family members are the only partners (“Permitted
Transferees”); provided, however, that no such transfer by any optionee may be made in exchange for consideration and following any such transfer the option may not be subsequently transferred; and provided 

  

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further, however, that following any such transfer, the exercise, vesting and termination provisions of such option and the Plan shall continue to be
applied with respect to the optionee who transferred such option. 
  
 (d) If any rights exercisable by the optionee or benefits deliverable to the optionee under the Plan have not been exercised or delivered, respectively, at the time of the optionee’s death, such rights shall be exercisable by the
optionee’s Designated Beneficiary, and such benefits shall be delivered to the Designated Beneficiary, in accordance with the provisions of the Plan and the applicable option agreement. The “Designated Beneficiary” shall be the
beneficiary or beneficiaries designated by the optionee in a writing filed with the Committee in such form and at such time as the Committee shall require. If a deceased optionee fails to designate a beneficiary, or if the Designated Beneficiary
does not survive the optionee, any rights that would have been exercisable by the optionee and any benefits distributable to the optionee shall be exercised by or distributed to the legal representative of the estate of the optionee. If a deceased
optionee designates a beneficiary but the Designated Beneficiary dies before the Designated Beneficiary’s exercise of all rights under the Plan or the option agreement or before the complete distribution of benefits to the Designated
Beneficiary under the option agreement, then any rights that would have been exercisable by the Designated Beneficiary shall be exercised by the legal representative of the estate of the Designated Beneficiary, and any benefits distributable to the
Designated Beneficiary shall be distributed to the legal representative of the estate of the Designated Beneficiary. 
  

	 	9.	Termination of Service 

  
 (a) Unless otherwise determined by the Committee, and subject to such restrictions as may be imposed by the Code in the case of any incentive stock
options, in the event that the employment or other period of service with the Company and the Subsidiaries of an optionee to whom an option has been granted under the Plan shall be terminated (except as set forth in Section 10), such option may,
subject to the provisions of the Plan, be exercised (to the extent that the optionee was entitled to do so under the Plan and the optionee’s option agreement at the termination of his employment or period of service) at any time within three
months after such termination, or, in the case of an employee whose termination results from retirement from active employment at or after age 55 (as determined by the Committee in its good faith discretion) within one year after such termination,
but in no case later than the date on which the option expires; provided, however, that any option held by an employee or consultant whose employment or service with the Company or a Subsidiary is terminated for Cause shall forthwith
terminate, to the extent not theretofore exercised. 
  
 (b)
Options granted under the Plan shall not be affected by any change of duties or position so long as the optionee holding any such option continues to be an employee, director or consultant of the Company or any of its Subsidiaries, subject to any
applicable limitations on the holding of incentive stock options; provided, however, that, in the event an employee becomes a consultant to the Company, the right of such 

  

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employee to retain his or her options shall be at the sole discretion of the Committee. Any option agreement, or any rules and regulations relating to the
Plan, may contain such provisions as the Committee shall approve with reference to the determination of the date employment or period of service with the Company and any Subsidiary terminates and the effect of leaves of absence. Any such rules and
regulations with reference to any option agreement shall be consistent with the provisions of the Code and any applicable rules and regulations thereunder. 
  
 (c) Nothing in the Plan or in any option granted pursuant to the Plan shall confer upon any employee, director or consultant any right to continue in the
employ of, or in any other relationship with, the Company or any of its Subsidiaries or interfere in any way with the right of the Company or any such Subsidiary to terminate any such employment or other relationship at any time. 
  
 (d) At any time after the termination of employment of the optionee for any
reason, including death or disability, the Company shall have the right to purchase any and all Common Stock acquired pursuant to the exercise of an option granted under the Plan from the optionee, the optionee’s legal representative, or any
person who acquires options or related Common Stock from the optionee by will or the laws of descent and distribution (the “Selling Shareholder”). The purchase price of any such Common Stock for which the Company exercises its
option to purchase shall be equal to the fair market value of such Common Stock, as determined in good faith by the Board of Directors; provided that any shares which are not vested shares shall be subject to repurchase by the Company at the
purchase price therefore as set forth in the applicable option agreement; and provided further, that, in the event that, within six months after the purchase by the Company of such Common Stock from a Selling Shareholder, (i) a Qualified IPO
or (ii) other event occurs which results in a change of ownership of a majority of the outstanding capital stock of the Company at a per share price in excess of the price paid by the Company to such Selling Shareholder, such Selling Shareholder
shall be entitled to an additional payment equal to the difference between what such Selling Shareholder was paid by the Company for each of such Selling Shareholder’s shares and the per share price paid in connection with Qualified IPO or
other transaction. The purchase price shall be paid in three equal annual installments, together with interest on the unpaid balance at the rate of two percentage points less than the prime rate of interest of the Company’s principal banking
institution. 
  
 The Company by written notice to the Selling
Shareholder shall specify a date not less than 10 nor more than 30 days from the date of such notice to consummate the purchase and sale of such Common Stock at the principal office of the Company. In the event the Selling Shareholder disputes the
fair market value of the Common Stock to be purchased by the Company pursuant to this Section 9(c), such Selling Shareholder may engage an appraiser, who shall be experienced in making appraisals of entities engaged in the business of the Company,
to value the Common Stock within 30 days of the date of the Company’s notice to consummate the purchase and sale. If such appraisal is within 10% of the value determined by the Board of Directors, the fair market value shall be 

  

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determined by taking the numerical average of the values determined by the Selling Shareholder’s appraiser and the Board of Directors. If the appraisal
is not within 10% of the value determined by the Board of Directors, then the Board of Directors and the Selling Shareholder’s appraiser shall mutually select a second appraiser, similarly qualified, within 10 days of the receipt of the
appraisal by the Selling Shareholder’s appraiser, and shall immediately so notify the parties. Within 20 days of appointing the second appraiser, the second appraiser shall select either the valuation determined by the Board or the Selling
Shareholder’s appraiser, and such determination as to fair market value shall be final and binding on the parties hereto. The Selling Shareholder shall bear the cost of the Selling Shareholder’s appraiser, and the Company and the Selling
Shareholder shall equally share the costs of the second appraiser, if any. 
  
 At the closing of the purchase of shares by the Company, the Selling Shareholder shall duly endorse Company certificates representing such Common Stock in proper form for transfer, and upon such endorsement, the
Company shall deliver to the Selling Shareholder a check in the amount of the first installment of the purchase price. The second and third installments shall be paid no later than the first and second anniversaries of the first installment payment
date. If the Selling Shareholder fails to properly endorse the share certificates, the Company may deposit the first installment of the purchase price (and subsequent installments if necessary) with the Treasurer of the Company and thereafter the
Common Stock shall be deemed to have been transferred to the Company and the Selling Shareholder, despite the failure to properly endorse the share certificates, shall have no further rights as a stockholder of the Company. In such event, the
Treasurer of the Company shall continue to hold the purchase price for such Common Stock until such time as the share certificates are properly endorsed and delivered to the Company. If any payment is delayed by reason of the Selling
Shareholder’s failure to properly endorse and deliver the certificates, no interest shall be paid for the period commencing with the due date of any such payment and ending with the actual date of payment. 
  

	 	10.	Death or Total Disability of Optionee 

  
 If an optionee ceases to be an employee, director or consultant of the Company or any Subsidiary by reason of “total disability,” such
optionee’s option may be exercised, to the extent that the optionee or a Permitted Transferee of the option was entitled to do so at the termination of employment or service with the Company or such a Subsidiary, as set forth herein and in the
optionee’s option agreement (subject to the restrictions set forth in Section 7 or otherwise applicable with respect to persons subject to Section 16(b) of the Exchange Act) at any time within one year after the date of such termination of
employment or service, but in no case later than the date on which the option expires. If an optionee shall die while an employee, director or consultant of the Company or its Subsidiaries or within three months (or, in the case of an employee whose
termination results from disability or retirement from active employment at or after age 55, within one year) after the termination of such employment or other relationship with the Company or such a Subsidiary (other than termination for cause),
such optionee’s 

  

 12 

 
option may be exercised, to the extent that the optionee or a Permitted Transferee of the option was entitled to do so at the termination of employment or
service with the Company or such as Subsidiary (or at the date of death, if later), as set forth herein and in the optionee’s option agreement by the optionee, a legatee or legatees of the optionee under the optionee’s last will, by the
optionee’s personal representatives or distributees or by the Permitted Transferee, whichever is applicable, at any time within one year after the date of the optionee’s death, but in no case later than the date on which the option
expires. For purposes hereof, “total disability” is defined as the permanent inability of an optionee, as a result of accident or sickness, to perform any and every duty pertaining to such optionee’s occupation or employment
for which the optionee is suited by reason of the optionee’s previous training, education and experience, as determined by the Committee in its good faith discretion, and, for purposes of incentive stock options granted under the plan,
“total disability” shall mean “permanent and total disability,” as defined in Section 22(e)(3) of the Code. 
  

	 	11.	Adjustment upon Changes in Capitalization, etc. 

  
 (a) Notwithstanding any other provision of the Plan, in the event of distributions to holders of Common Stock other than a normal cash dividend, changes
in the outstanding Common Stock by reason of stock dividends, recapitalizations, mergers, consolidations, combinations or exchanges of shares, separations, reorganizations, liquidations, “spin-offs” or similar capital changes, the
Committee may, in its sole discretion, make such adjustments to the number, class and kind of shares available under the Plan and to the number, class, kind and price of shares available under any outstanding option as it may deem appropriate to
prevent dilution or enlargement of the rights of optionees or otherwise to reflect such capital changes. Any such determination by the Committee shall be conclusive. No adjustment shall be made in respect of an incentive stock option if such
adjustment would disqualify such option as an incentive stock option under Section 422 of the Code and the Treasury Regulations thereunder, unless the Committee determines otherwise. No adjustment shall be made in the minimum number of shares with
respect to which an option may be exercised at any time. Any fractional shares resulting from such adjustments to options shall be eliminated. Notwithstanding the foregoing, in the event of a stock split or other technical adjustment in the number
of authorized and/or issued shares of Common Stock, the Committee shall make such adjustments to the number, class and kind of shares available under the Plan and to the number, class, kind and price of shares available under any outstanding option
as it may deem appropriate to prevent dilution or enlargement of the rights of optionees or otherwise to reflect such capital changes.  
  
 (b) In the event of a Change of Control, in addition to or in lieu of the any acceleration of outstanding options described in Section 7(b): 

 

	 	(i)	 In its discretion, and on such terms and conditions as it deems appropriate, the Committee may provide, either by the terms of the option agreement applicable to
any option or by resolution adopted 

  

 13 

	 	 
prior to the occurrence of the Change of Control, that any outstanding option shall be adjusted by substituting for Common Stock subject to such option stock
or other securities of the surviving corporation or any successor corporation to the Company, or a parent or subsidiary thereof, or that may be issuable by another corporation that is a party to the transaction resulting in the Change of Control,
whether or not such stock or other securities are publicly traded, in which event the aggregate option exercise price shall remain the same and the amount of shares or other securities subject to the option shall be the amount of shares or other
securities which could have been purchased on the closing date or expiration date of such transaction with the proceeds which would have been received by the optionee if the option had been exercised in full (or with respect to a portion of such
option, as determined by the Committee, in its discretion) prior to such transaction or expiration date and the optionee exchanged all of such shares in the transaction. 

  

	 	(ii)	In its discretion, and on such terms and conditions as it deems appropriate, the Committee may provide, either by the terms of the option agreement applicable to any option or by
resolution adopted prior to the occurrence of the Change of Control, that any outstanding option shall be converted into a right to receive cash on or following the closing date or expiration date of the transaction resulting in the Change of
Control in an amount equal to the highest value of the consideration to be received in connection with such transaction for one share of Common Stock, less the per share option exercise price of such option, multiplied by the number of shares of
Common Stock subject to such option, or a portion thereof. 

  

	 	(iii)	The Committee may, in its discretion, provide that an option cannot be exercised after such a Change of Control, to the extent that such option is or becomes fully exercisable on or
before such Change of Control and/or is subject to any acceleration, adjustment or conversion in accordance with Section 7(b) or the foregoing subsections (i) or (ii) of this Section 11(b). 

  
 No optionee shall have any right to prevent the consummation of any of the foregoing acts
affecting the number of shares of Common Stock available to such optionee. Any actions or determinations of the Committee under this Section 11(b) or Section 7(b) need not be uniform as to all outstanding options, nor treat all optionees
identically. Notwithstanding the foregoing adjustments, in no event may any option be exercised after ten (10) years from the date it was originally granted. 
  

 14 

	 	12.	Effective Date; Compliance with Law; Optionee Acknowledgments 

  
 (a) The Plan shall be effective as of the date on which the Plan is approved by the stockholders of the Company, which approval shall occur within 12
months before or after the date the Plan is adopted by the Board of Directors. The Committee thereafter may, in its discretion, grant options under the Plan, the grant, exercise or payment of which shall be expressly subject to the conditions that,
to the extent required at the time of grant, exercise or payment, (i) if the Company deems it necessary or desirable, a Registration Statement under the Securities Act of 1933, as amended (the “Securities Act”), with respect to such
shares shall be effective, and (ii) any requisite approval or consent of any governmental authority of any kind having jurisdiction over options granted under the Plan shall have been obtained. 
  
 (b) If at any time counsel to the Company shall be of the opinion that any
sale or delivery of shares of Common Stock pursuant to an option under the Plan is or may be in the circumstance unlawful or result in the imposition of excise taxes on the Company or any Subsidiary under the statutes, rules or regulations of any
applicable jurisdiction, the Company shall have no obligation to make such sale or delivery, or to make any application or to effect or to maintain any qualification or registration under the Securities Act, or otherwise with respect to shares of
Common Stock or option grants under the Plan and the right to exercise any option shall be suspended until, in the opinion of such counsel, such sale or delivery shall be lawful or will not result in the imposition of excise taxes on the Company or
any Subsidiary. 
  
 (c) The Committee may require each person
receiving Common Stock in connection with an award under the Plan to represent and agree with the Company in writing that such person is acquiring the shares of Common Stock for investment without a view to the distribution thereof. The Committee,
in its absolute discretion, may impose such restrictions on the ownership and transferability of shares of Common Stock purchasable or otherwise receivable by any person under any award as it deems appropriate. Any such restrictions shall be set
forth in the applicable option agreement, and the certificates evidencing such shares may include any legend that the Committee deems appropriate to reflect any such restrictions. The Committee may require an optionee to give prompt written notice
to the Company concerning any disposition of shares of Common Stock received upon the exercise of an incentive stock option within: (i) two years from the date of granting such incentive stock option to such optionee or (ii) one year from the
transfer of such shares of Common Stock to such optionee or (iii) such other period as the Committee may from time to time determine. The Committee may direct that an optionee undertake in the applicable option agreement to give such notice
described in the preceding sentence, at such time and containing such information as the Committee may prescribe, and/or that the certificates evidencing shares of Common Stock acquired by exercise of an incentive stock option refer to such
requirement to give such notice. 
  

 15 

 (d) By accepting any benefit under the Plan, each optionee and each person claiming under or through such
optionee shall be conclusively deemed to have indicated their acceptance and ratification of, and consent to, all of the terms and conditions of the Plan and any action taken under the Plan by the Committee, the Company or the Board of Directors, in
any case in accordance with the terms and conditions of the Plan. 
  

	 	13.	Termination and Amendment 

  
 The Plan shall be of unlimited duration; provided, however, that, to the extent required by the Code, no incentive stock option may be
granted under the Plan on a date that is more than 10 years from the effective date of the Plan set forth in Section 12. The Board of Directors may suspend, terminate, modify or amend the Plan, provided that any modification or amendment that
would (a) increase the aggregate number of shares that may be issued under the Plan; (b) decrease the minimum option exercise price requirements of Section 5 or otherwise materially increase the benefits accruing to optionees under the Plan; (c)
extend the duration of the period during which incentive stock options may be granted under the Plan or the period during which options may be exercised under Section 6; or (d) modify the requirements as to eligibility for participation in the Plan
shall be subject to the approval of the Company’s stockholders to the extent required by Rule 16b-3 under the Exchange Act, or any other governing rules or regulations, except that any such increase in shares of Common Stock or decrease in
option exercise price that may result from adjustments authorized by Section 11 does not require such approval. If the Plan is terminated, the terms of the Plan shall, notwithstanding such termination, continue to apply to awards granted prior to
such termination. In addition, no suspension, termination, modification or amendment of the Plan, other than as may result from adjustments authorized by Section 11, may, without the consent of the optionee to whom an option shall theretofore have
been granted, materially adversely affect the rights of such optionee under such option. The Committee may amend the terms of any option theretofore granted under the Plan, including any agreement evidencing any such option, retroactively or
prospectively, but no such amendment, other than as may result from adjustments authorized by Section 11, shall materially impair the previously accrued right of any optionee under any outstanding option without his or her written consent.

  

 16 

	 	14.	Right of First Refusal. 

  
 Until the closing of a Qualified IPO (as hereinafter defined), any transfer of shares of the Company’s capital stock acquired by the exercise of an
option granted pursuant to this plan (such shares to be referred to herein as “Option Shares”) shall be subject to the following: 
  
 (a) Any holder of Option Shares proposing to effect a sale, transfer or other disposition of all or any of his Option Shares (the
“Offeror”) pursuant to a bona fide offer received from a third party shall first offer the Company, by written notice (which shall contain all the information necessary to enable the Company to make an informed decision, including
the identity of the Offeror and of the proposed transferee(s) and the proposed terms, including price, of sale of the Option Shares), to purchase such Option Shares on terms of the proposed transfer. The Company may accept such offer in respect of
all or any of the Option Shares by giving the Offeror notice to that effect within 30 days after receipt of the offer. 
  
 (b) If the Company agrees to purchase less than all of the Option Shares, the Offeror shall be entitled to transfer all (but not less than all) of the
remaining Option Shares to the proposed transferee(s) identified in the Offer, provided, however, that in no event shall the Offeror transfer any of the remaining Option Shares to any transferee on terms more favorable to the buyer(s) than
those stated in the Offer, and provided further that any of the remaining Option Shares not transferred within 90 days after the expiration of such 30 day period shall again be subject to the provisions of this Section 14. 
  
 (c) For the purposes of this Section 14, the term “Qualified
IPO” shall mean the closing of a firm commitment underwritten public offering of shares of common stock of the Company pursuant to an effective registration statement under the United States Securities Act of 1933, as amended, which results
in (i) aggregate net proceeds to the Company of at least $20,000,000 and (ii) a price paid by the public for such shares of at least $1.40 (as adjusted to reflect any stock splits, stock dividends, combinations, subdivisions, recapitalizations or
the like with respect to the common stock of the Company). 
  

	 	15.	Lock-Up. 

  
 If an underwriter to any registration of the Company’s securities so requests, any sale or other disposition of Option Shares may be subject to a
“lock-up” period restricting such sales or other dispositions for up to 180 days beginning on the effective date of the registration statement pursuant to which an Qualified IPO was effected, and all optionees shall abide by such customary
“lock-up” as is required by the underwriter in such registration; provided, however, that all persons entitled to registration rights with respect to shares of common stock of the Company which are not also Option Shares, all other
persons selling shares of common stock of the Company in such offering, all persons holding in excess of 2% of the capital stock of the Company on a fully diluted basis and all executive officers and directors of the Company shall also have agreed
not to sell publicly their common stock under the circumstances and pursuant to the terms set forth in this Section 15; and provided, further, however, that any such lock-up agreement shall provide that if the underwriter releases any shares
from the lock-up with respect to such offering prior to the scheduled expiration date, the underwriter shall contemporaneously release a pro rata portion of the Option Shares from such lock-up. 
  

 17 

 In addition, no optionee may participate in any underwritten registration unless such person (i) agrees
to sell such person’s securities on the basis provided in any customary underwriting arrangements and (ii) provides any relevant information and completes and executes all questionnaires, powers of attorney, indemnities, underwriting
agreements, and other documents required under the terms of such underwriting arrangements. 
  

	 	16.	Written Agreements 

  
 Each grant of options shall be evidenced by a written agreement, executed by the optionee and the Company, which shall contain such restrictions, terms
and conditions, not inconsistent with the terms and conditions of the Plan, as the Committee may require. Each such option agreement shall state whether such option will be treated as an incentive stock option or non-qualified option. The form of
the non-qualified option agreement is attached hereto as Appendix A, the form of the non-qualified option agreement for outside directors is attached hereto as Appendix B, the form of the incentive stock option agreement is attached hereto as
Appendix C and the form of the Israeli 102 stock option agreement is attached hereto as Appendix D. 
  

	 	17.	Effect on Other Stock Plans; Governing Law 

  
 (a) The adoption of the Plan shall have no effect on option grants made or to be made, pursuant to other stock plans or otherwise, to employees, directors
or consultants of the Company or its Subsidiaries, or any predecessors or successors thereto. 
  
 (b) The Plan shall be governed by and construed in accordance with the laws of the State of Delaware, without regard to such state’s conflict of law provisions, and, in any event, except as superseded by
applicable Federal law. 
  
 Signature appears on following page

  

 18 

 IN WITNESS WHEREOF, the Company has caused its duly authorized officer to execute this Plan as of
the 25th day of November, 2003. 
  

			
	APPILOG, INC.
		
	By:	 	 
	 	 	 Irwin Wallach, President

  
 Signature Page
to Stock Option Plan2004 Employee Stock Purchase Plan

 EXHIBIT 10.3 
  
 NETLOGIC MICROSYSTEMS, INC. 
  

2004 EMPLOYEE STOCK PURCHASE PLAN 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page

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

  

 i 

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

 
 1. Purpose 
  
 The purpose of the Plan is to provide employees of the Company and its Designated Subsidiaries with an opportunity to
purchase Common Stock of the Company. It is the intention of the Company to have the Plan qualify as an “Employee Stock Purchase Plan” under Section 423 of the Code. The provisions of the Plan shall, accordingly, be construed so as to
extend and limit participation in a manner consistent with the requirements of that section of the Code. 
  
 2. Definitions 
  
 2.1
Acquisition means a merger or consolidation of the Company with and into another person or the sale, transfer, or other disposition of all or substantially all of the Company’s assets to one or more persons (other than any
wholly-owned subsidiary of the Company) in a single transaction or series of related transactions. 
  
 2.2 Board means the Board of Directors of the Company. 
  
 2.3 Code means the Internal Revenue Code of 1986, as amended. 
  
 2.4 Common Stock means the Common Stock, par value $0.01 per
share, of the Company. 
  
 2.5 Company means
NetLogic Microsystems, Inc., a Delaware corporation. 
  
 2.6
Compensation means all regular straight time compensation including commissions but shall not include payments for overtime, shift premium, incentive compensation, incentive payments, bonuses and other irregular or infrequent
compensation or benefits. 
  
 2.7 Continuous Status as an
Employee means the absence of any interruption or termination of service as an Employee. Continuous Status as an Employee shall not be considered interrupted in the case of (i) sick leave; (ii) military leave; (iii) any other leave of
absence approved by the Administrator, provided, that such leave is for a period of not more than 90 days, unless reemployment upon the expiration of such leave is guaranteed by contract or statute, or unless provided otherwise pursuant to
Company policy adopted from time to time; or (iv) in the case of transfers between locations of the Company or between the Company and its Designated Subsidiaries. 
  
 2.8 Contributions means all amounts credited to the account of a participant pursuant to the Plan. 

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

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

 2 

 Other terms are defined in the following sections: 
  

				
	 Term

	  	Section

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

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

 
 3.2 Certain Restrictions. Any provisions of the Plan to the
contrary notwithstanding, no Employee shall be granted an option under the Plan (i) if, immediately after the grant, such Employee (taking into account stock which would be attributed to such Employee pursuant to Section 424(d) of the Code) would
own capital stock of the Company and/or hold outstanding options to purchase stock possessing five percent or more of the total combined voting power or value of all classes of stock of the Company or of any Parent or Subsidiary of the Company, or
(ii) if such option would permit his or her rights to purchase stock under all employee stock purchase plans (described in Section 423 of the Code) of the Company and its Parent or Subsidiaries to accrue at a rate which exceeds Twenty-Five Thousand
Dollars ($25,000) of the Fair Market Value (as defined in Section 7.2 below) of such stock (determined at the time such option is granted) for each calendar year in which such option is outstanding at any time. 
  
 4. Offering Periods 
  
 Each Offering Period will begin on January 1 or July 1 and end on the next following June 30 or December 31, respectively.
However, the Initial Offering Period shall commence on the beginning of the effective date of the Registration Statement on Form S-1 for the initial public offering of the Company’s Common Stock (the “IPO Date”) and
continue until the second anniversary of such effective date. At any time and from time to time, the Board may change the duration and/or the frequency of Offering Periods with respect to future Offering Periods or suspend operation of the Plan with
respect to Offering Periods not yet commenced. 
  
 5. Participation

  
 5.1 Subscription Agreement. An eligible Employee
may become a participant in the Plan by completing a subscription agreement on the form provided by the Company and filing it with the Company’s payroll office at least five business days prior to the applicable Offering Commencement Date,
unless a later time for filing the subscription agreement is set by the Board for all eligible Employees with respect to a given Offering Period. The subscription agreement shall set forth the percentage of the participant’s Compensation
(subject to Section 6.1 below) to be paid as Contributions pursuant to the Plan. 
  

 3 

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

 
 (a) All eligible Employees as of the Offering Commencement Date of the
Initial Offering Period shall automatically participate in the Plan and be granted an option pursuant to the Plan as of such Offering Commencement Date. Eligible Employees shall neither be required to submit a subscription agreement to participate
in the Initial Offering Period nor be permitted to decline to participate in the Initial Offering Period (but any Contributions of a participant for the Initial Offering Period may be withdrawn as provided in Section 10). However, any participation
as to subsequent Offering Periods shall require submission of a subscription agreement and compliance with all other applicable provisions of the Plan. 
  
 (b) For purposes of determining the exercise price of options granted on the Offering Commencement Date of the Initial Offering Period, the Fair Market
Value of a Share as of such Offering Commencement Date shall be the “Price to Public” as set forth in the final prospectus filed with the Securities and Exchange Commission pursuant to Rule 424 under the Securities Act.

  
 (c) At any time within 10 business days after the effective
date of the Company’s Registration Statement on Form S-8 with respect to the Plan, a participant in the Plan for the Initial Offering Period may deliver to the Company’s accounting department by payment in cash or personal check amounts
for credit as Contributions under the Plan with respect to the Initial Offering Period. Such payment must be accompanied by a completed subscription payment form which has been approved by the Company or its designee, such as the Administrator.

  
 (d) The total Contributions credited to a participant’s
account under the Plan for the Initial Offering Period pursuant to subsection (c) above, when combined with any payments made into such participant’s account by payroll deductions, shall not exceed 10 percent of the participant’s
Compensation for the Initial Offering Period. Any excess shall be promptly refunded to the participant following the Offering Termination Date of the Initial Offering Period. 
  
 5.4 Tax Withholding. Each participant who purchases shares of Common Stock under the Plan shall thereby be deemed to
have agreed that the Company or the Subsidiary that employs the participant shall be entitled to withhold, from any other amounts that may be payable to the participant at or around the time of the purchase, such federal, state, local and foreign
income, employment and other taxes which may be required to be withheld under applicable laws. In lieu of such withholding, the Company or such Subsidiary may require the participant to remit such taxes to the Company or such Subsidiary as a
condition of the purchase. 
  
 6. Method of Payment of Contributions

  
 6.1 Election. A participant shall elect to have
payroll deductions made on each payday during the Offering Period in an amount not less than one percent and not more than 10 percent (or such other percentage as the Board may establish from time to time before an Offering 
  

 4 

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

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

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

  
 Unless a participant withdraws from the Plan as provided
in Section 10, his or her option for the purchase of Shares will be exercised automatically on the Offering Termination Date of an 
  

 5 

 Offering Period, and the maximum number of full Shares subject to the option will be purchased at the applicable Purchase
Price with the accumulated Contributions in his or her account. No fractional Shares shall be issued. The Shares purchased upon exercise of an option hereunder shall be deemed to be transferred to the participant on the Offering Termination Date.
During his or her lifetime, a participant’s option to purchase Shares hereunder is exercisable only by him or her. 
  
 9. Delivery 
  
 As promptly as practicable after each Offering Termination Date of each Offering Period, the Company shall arrange the delivery to or for the benefit of
each participant, as appropriate, of a certificate representing the Shares purchased upon exercise of his or her option. Any payroll deductions accumulated in a participant’s account which are not sufficient to purchase a full Share shall be
retained in the participant’s account for the subsequent Offering Period, subject to earlier withdrawal by the participant as provided in Section 10 below. Any other amounts left over in a participant’s account after an Offering
Termination Date shall be returned to the participant. 
  
 10. Voluntary
Withdrawal; Termination of Employment 
  
 10.1 Withdrawal
of Contributions. A participant may withdraw all but not less than all of the Contributions credited to his or her account under the Plan at any time prior to each Offering Termination Date by giving written notice to the Company. All of the
participant’s Contributions credited to his or her account will be paid to him or her promptly after receipt of his or her notice of withdrawal and his or her option for the current Offering Period will be automatically terminated, and no
further Contributions for the purchase of Shares will be made during the Offering Period. 
  
 10.2 Termination of Employment. Upon termination of the participant’s Continuous Status as an Employee prior to the Offering Termination Date of an Offering Period for any reason, including retirement or
death, the Contributions credited to his or her account will be returned to him or her or, in the case of his or her death, to the person or persons entitled thereto under Section 14, and his or her option will be automatically terminated.

  
 10.3 Automatic Withdrawal from Plan. In the event an
Employee fails to remain in Continuous Status as an Employee of the Company for at least 20 hours per week during the Offering Period in which the Employee is a participant, he or she will be deemed to have elected to withdraw from the Plan and the
Contributions credited to his or her account will be returned to him or her and his or her option terminated. 
  
 10.4 Effect of Withdrawal from Plan. A participant’s withdrawal during an Offering Period will not have any effect upon his or her eligibility
to participate in a succeeding Offering Period or in any similar plan which may hereafter be adopted by the Company. 
  
 11. Interest 
  
 No interest shall accrue on the Contributions of a participant in the Plan. 
  
 12. Stock 
  
 12.1 Maximum Number of Shares. Subject to adjustment as provided in Section 18, the maximum number of Shares which shall be made available for sale
under the Plan shall be 750,000 Shares, plus an annual increase to be added on the first day of the Company’s fiscal year beginning in 
  

 6 

 2005 and on each anniversary of that date thereafter equal to the least of (i) 75,000 Shares, (ii) one-half percent of
the outstanding Shares on the IPO Date, and (iii) such other amount as the Board may specify prior to the date such annual increase is to take effect. If the Board determines that, on a given Offering Termination Date, the number of shares with
respect to which options are to be exercised may exceed (i) the number of shares of Common Stock that were available for sale under the Plan on the Offering Commencement Date, or (ii) the number of shares available for sale under the Plan on such
Offering Termination Date, the Board may in its sole discretion provide that the Company shall make a pro rata allocation of the Shares available for purchase on such Offering Commencement Date or Offering Termination Date, as applicable, in as
uniform a manner as shall be practicable and as it shall determine in its sole discretion to be equitable among all participants exercising options to purchase Common Stock on such Offering Termination Date. The Company may make pro rata allocation
of the Shares available on the Offering Commencement Date of the applicable Offering Period pursuant to the preceding sentence, notwithstanding any authorization of additional Shares for issuance under the Plan by the Company’s stockholders
subsequent to such Offering Commencement Date. 
  
 12.2 No
Interest or Voting Right. The participant shall have no interest or voting right in Shares covered by his or her option until such option has been exercised. 
  
 12.3 Registration of Shares. Shares to be delivered to a participant under the Plan will be registered in the name of
the participant or in the name of the participant and his or her spouse, as directed by the participant. 
  
 13. Administration 
  
 13.1 Board Authority. The Board, or a committee named by the Board, shall supervise and administer the Plan and shall have full power to adopt, amend and rescind any rules deemed desirable and appropriate for the administration of
the Plan and not inconsistent with the Plan, to construe and interpret the Plan, and to make all other determinations necessary or advisable for the administration of the Plan. The Board’s determinations made in good faith on matters referred
to in this Plan shall be final, binding and conclusive on all persons having or claiming any interest under this Plan. 
  
 13.2 Designation of Administrator. The Board may from time to time designate an employee or retain a third party to address routine administrative
matters. Any employee or third party so designated may be referred to herein as the “Administrator.” 
  
 14. Designation of Beneficiary 
  
 14.1 Designation. A participant may file a written designation of a beneficiary who is to receive any Shares and cash, if any, from the
participant’s account under the Plan in the event of such participant’s death subsequent to the end of an Offering Period but prior to delivery to him or her of such Shares and cash. Any such beneficiary shall also be entitled to receive
any cash from the participant’s account under the Plan in the event of such participant’s death prior to the Offering Termination Date of an Offering Period. 
  
 14.2 Changes to Designation; Lack of Designation. Such designation of beneficiary may be changed by the participant
at any time by written notice. In the event of the death of a participant and in the absence of a beneficiary validly designated under the Plan who is living at the time of such 
  

 7 

 participant’s death, the Company shall deliver such Shares and/or cash to the executor or administrator of the
estate of the participant, or if no such executor or administrator has been appointed (to the knowledge of the Company), the Company, in its discretion, may deliver such Shares and/or cash to the spouse or to any one or more dependents or relatives
of the participant, or if no spouse, dependent or relative is known to the Company, then to such other person as the Company may designate. 
  
 15. Transferability of Options and Shares 
  
 15.1 Restrictions on Transfer. Neither Contributions credited to a participant’s account nor any rights with regard to the exercise of an
option or to receive Shares under the Plan may be assigned, transferred, pledged or otherwise disposed of in any way (other than by will, the laws of descent and distribution, or as provided in Section 14) by the participant. Any such attempt at
assignment, transfer, pledge or other disposition shall be without effect, except that the Company may treat such act as an election to withdraw funds in accordance with Section 10. In addition, if the Board has so announced to Employees at least
five days prior to the scheduled beginning of the next Offering Period to be affected by the Board’s determination, any Shares acquired on the Offering Termination Date of such Offering Period may be subject to restrictions specified by the
Board on the transfer of such Shares. 
  
 15.2 Notice of
Transfer. Any participant selling or transferring any or all of his or her Shares purchased pursuant to the Plan must provide written notice of such sale or transfer to the Company within five business days after the date of sale or transfer.
Such notice to the Company shall include the gross sales price, if any, the Offering Period during which the Shares being sold were purchased by the participant, the number of Shares being sold or transferred and the date of sale or transfer.

  
 16. Use of Funds 
  
 All Contributions received or held by the Company under the Plan may be used
by the Company for any corporate purpose, and the Company shall not be obligated to segregate such Contributions from its other assets. 
  
 17. Reports 
  
 Individual accounts will be maintained for each participant in the Plan. Statements of account will be given to participating Employees at least annually,
which statements will set forth the amounts of Contributions, the per Share Purchase Price, the number of Shares purchased and the remaining cash balance, if any. 
  
 18. Adjustments Upon Changes in Capitalization; Acquisitions 
  
 18.1 Adjustment. Subject to any required action by the stockholders of the Company, the number of shares covered by
each option under the Plan which has not yet been exercised and the number of Shares which have been authorized for issuance under the Plan but have not yet been placed under option (collectively, the “Reserves”), as well as
the maximum number of shares of Common Stock which may be purchased by a participant in an Offering Period, the number of shares of Common Stock set forth in Section 12.1 above, and the price per Share of Common Stock covered by each option under
the Plan which has not yet been exercised, shall be proportionately adjusted for 
  

 8 

 any increase or decrease in the number of the Company’s issued Shares resulting from a stock split, reverse stock
split, stock dividend, combination or reclassification of the Common Stock (including any such change in the number of Shares of Common Stock effected in connection with a change in domicile of the Company), or any other increase or decrease in the
number of Shares effected without receipt of consideration by the Company; provided however, that conversion of any convertible securities of the Company shall not be deemed to have been “effected without receipt of consideration.”
Such adjustment shall be made by the Board, whose determination in that respect shall be final, binding and conclusive. 
  
 18.2 Acquisitions. In the event of a dissolution or liquidation of the Company, the Offering Period then in progress will terminate immediately
prior to the consummation of such action, unless otherwise provided by the Board. In the event of an Acquisition, each option outstanding under the Plan shall be assumed or an equivalent option shall be substituted by the successor corporation or a
parent or Subsidiary of such successor corporation. In the event that the successor corporation refuses to assume or substitute for outstanding options, the Offering Period then in progress shall be shortened and a new Offering Termination Date
shall be set (the “New Offering Termination Date”), as of which date the Offering Period then in progress will terminate. The New Offering Termination Date shall be on or before the date of consummation of the transaction and
the Board shall notify each participant in writing, at least ten (10) days prior to the New Offering Termination Date, that the Offering Termination Date for his or her option has been changed to the New Offering Termination Date and that his or her
option will be exercised automatically on the New Offering Termination Date, unless prior to such date he or she has withdrawn from the Offering Period as provided in Section 10. For purposes of this Section 18, an option granted under the Plan
shall be deemed to be assumed, without limitation, if, at the time of issuance of the stock or other consideration upon an Acquisition, each holder of an option under the Plan would be entitled to receive upon exercise of the option the same number
and kind of shares of stock or the same amount of property, cash or securities as such holder would have been entitled to receive upon the occurrence of the transaction if the holder had been, immediately prior to the transaction, the holder of the
number of Shares of Common Stock covered by the option at such time (after giving effect to any adjustments in the number of Shares covered by the option as provided for in this Section 18); provided, however, that if the consideration
received in the transaction is not solely common stock of the successor corporation or its parent (as defined in Section 424(e) of the Code), the Board may, with the consent of the successor corporation, provide for the consideration to be received
upon exercise of the option to be solely common stock of the successor corporation or its parent equal in Fair Market Value to the per Share consideration received by holders of Common Stock in the transaction. 
  
 18.3 Other Adjustments. The Board may, if it so determines in the
exercise of its sole discretion, also make provision for adjusting the Reserves, as well as the price per Share of Common Stock covered by each outstanding option, in the event that the Company effects one or more reorganizations, recapitalizations,
rights offerings or other increases or reductions of Shares of its outstanding Common Stock, and in the event of the Company’s being consolidated with or merged into any other corporation. 
  
 19. Amendment or Termination 
  
 19.1 Amendment or Termination by the Board. The Board may at any time
and for any reason terminate or amend the Plan. Except as provided in Section 18, no such termination of the Plan may affect options previously granted, provided that the Plan or an Offering Period may be 
  

 9 

 terminated by the Board on an Offering Termination Date or by the Board’s setting a new Offering Termination Date
with respect to an Offering Period then in progress if the Board determines that termination of the Plan and/or the Offering Period is in the best interests of the Company and its stockholders or if continuation of the Plan and/or the Offering
Period would cause the Company to incur adverse accounting charges as a result of the Plan. Except as provided in Section 18 and in this Section 19, no amendment to the Plan shall make any change in any option previously granted which adversely
affects the rights of any participant. 
  
 19.2 Other Powers of
the Board. Without stockholder consent and without regard to whether any participant rights may be considered to have been adversely affected, the Board (or its committee) shall be entitled to change the Offering Periods, limit the frequency
and/or number of changes in the amount withheld during an Offering Period, establish the exchange ratio applicable to amounts withheld in a currency other than U.S. dollars, permit payroll withholding in excess of the amount designated by a
participant in order to adjust for delays or mistakes in the Company’s processing of properly completed withholding elections, establish reasonable waiting and adjustment periods and/or accounting and crediting procedures to ensure that amounts
applied toward the purchase of Common Stock for each participant properly correspond with amounts withheld from the participant’s Compensation, and establish such other limitations or procedures as the Board (or its committee) determines in its
sole discretion advisable which are consistent with the Plan. 
  
 20. Notices
and Other Communications 
  
 Any notice, demand, request or
other communication hereunder to any party shall be deemed to be sufficient if contained in a written instrument delivered in person or duly sent by first class registered, certified or overnight mail, postage prepaid, or telecopied with a
confirmation copy by regular, certified or overnight mail, addressed or telecopied, as the case may be, (i) if to the recipient of an Award, at his or her residence address last filed with the Company and (ii) if to the Company, at its principal
place of business, addressed to the attention of its Treasurer, or to such other address or telecopier number or electronic mail address, as the case may be, as the addressee may have designated by notice to the addressor. All such notices,
requests, demands and other communications shall be deemed to have been received: (i) in the case of personal delivery, on the date of such delivery; (ii) in the case of mailing, when received by the addressee; (iii) in the case of facsimile
transmission, when confirmed by facsimile machine report; and (iv) in the case of electronic mail, when directed to an electronic mail address at which the receiving party has consented to receive notice, provided, that such consent is deemed
revoked if the sender is unable to deliver by electronic transmission two consecutive notices and such inability becomes known to the secretary or assistant secretary of the corporation or to the transfer agent, or other person responsible for
giving notice. 
  
 21. Conditions to Issuance of Shares 
  
 21.1 Compliance with Securities Laws. Shares shall not be issued with
respect to an option unless the exercise of such option and the issuance and delivery of such Shares pursuant thereto shall comply with all applicable provisions of law, domestic or foreign, including, without limitation, the Securities Act, the
Exchange Act, the rules and regulations promulgated thereunder, applicable state securities laws and the requirements of any stock exchange upon which the Shares may then be listed, and shall be further subject to the approval of counsel for the
Company with respect to such compliance. 
  

 10 

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

 11 

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

 
 6. Shares purchased for me under the Plan should be issued in the name(s)
of (name of employee or employee and spouse only): 
  

	
	  

	
	  

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

 

									
	 	 	 	 	  

	 	 	 	 	 (First)
	 	(Middle)	 	(Last)
	  
  

	 	 	 	  
  

	 (Relationship)
	 	 	 	 (Address)
	 	 	 	 
	 	 	 	 	  
  

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

			
	 SIGNATURE:
  

	
	 SOCIAL SECURITY #:
  

	
	 DATE:
  

  

 2 

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

	
	

	
	  

  
 3. In the event
of my death, I hereby designate the following as my beneficiary(ies) to receive all shares due to me under the Plan: 
  
 NAME: (Please print)  
  

									
	 	 	 	 	
 (First)                                      
          
(Middle)                                       
          (Last)

					
	 	 	 	 	 	 	 	 	 
	
 (Relationship)
	 	 	 	
 (Address)

	 	 	 	 	 	 	  

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

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

	
	 SIGNATURE: 
  

	
	 SOCIAL SECURITY #: 
  

	
	 DATE:
  

  

 2 

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

									
	 Dated: 
  

	 	 	 	
 Signature of Employee

					
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	
 Social Security Number

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