Employment Letter to Ron Jankov

Form of Change in Control Agreement


Exhibit 10.16




April 12, 2000


Ron Jankov



Dear Ron,


NetLogic Microsystems LLC (the “Company”) is pleased to offer you employment on the following terms:


1. Position. You will serve in a full-time capacity as President and CEO of the Company. You will report to the Board of Directors of the Company and be elected a Board Member at the next Board meeting. Your primary duties will be to manage the day to day operations of the Company, as well as develop and execute a plan to make the Company profitable. In addition, you will be responsible for fund raising with help from the Board of Directors. By signing this employment letter, you represent and warrant to the Company that you are under no contractual commitments inconsistent with your obligations to the Company.


2. Salary. You will be paid a salary at the annual rate of $180,000, payable in semi-monthly installments in accordance with the Company’s standard payroll practices for salaried employees. This salary will be subject to adjustment pursuant to the Company’s employee compensation policies in effect from time to time. You will also be entitled to a bonus of $36,000 per year, subject to achieving mutually agreed upon goals for the Company.


3. Unit Purchases. Subject to the approval of the Company’s Board of Directors or its Compensation Committee, you will be granted a right to purchase 1,700,000 units of the Company’s Class 2 Membership interests. The exercise price per unit will be equal to the fair market value per unit on the date of grant by the Board at their next meeting. The right will be subject to the terms and conditions applicable to units granted under the Company’s Stock Plan, as described in that Plan and the applicable Membership Interest Purchase Agreement. The purchased units will be subject to repurchase by the Company at the exercise price in the event that your service terminates before you vest in the units. This repurchase of units by the




Ron Jankov


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April 12, 2000


Company will be subject to and limited by the Accelerated Vesting of Units as outlined in Appendix A. For 1,100,000 of the units, you will vest in 25% of the units after 12 months of service, and the balance will vest in monthly installments over the next 36 months of service, as described in the applicable Unit Purchase Agreement. The remaining 600,000 units will be fully vested after five years of employment with NetLogic Microsystems. Out of these 600,000 units, 300,000 will have an accelerated vesting upon the date of either an Initial Public Offering or Acquisition or Merger of the Company if the valuation of the Company exceeds $250M. The Company will loan you the money to purchase the units, if you so wish, with a four year note bearing an interest rate of 6% per annum, compounded semi-annually and pledged by your NetLogic units.


4. Agreement Regarding Confidentiality & Inventions. Like all Company employees, you will be required, as a condition to your employment with the Company, to sign the Company’s standard Agreement Regarding Confidentiality & Inventions, a copy of which is attached hereto as Exhibit A.


5. Period of Employment. Your employment with the Company will be “at will,” meaning that either you or the Company will be entitled to terminate your employment at any time and for any reason, with or without cause. Any contrary representations which may have been made to you are superseded by this offer. This is the full and complete agreement between you and the Company on this term. Although your job duties, title, compensation and benefits, as well as the Company’s personnel policies and procedures, may change from time to time, the “at will” nature of your employment may only be changed in an express written agreement signed by you and a duly authorized officer of the Company.


6. Noncompetition Covenant. Employee hereby agrees that he or she shall not, during the term of his or her employment pursuant to this Agreement and the Severance Period, if any, do any of the following without the prior written consent of the Company’s Board of Directors: (a) Compete. Carry on any business or activity (whether directly or indirectly, as a partner, stockholder, principal, agent, director, affiliate, employee or consultant) which is competitive with the business conducted by the Company (as conducted now or during the term of Employee’s employment), nor engage in any other activities that conflict with Employee’s




Ron Jankov


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April 12, 2000


obligations to the Company. (b) Solicit Business. Solicit or influence or attempt to influence any client, customer or other person either directly or indirectly, to direct his or its purchase of the Company’s products and/or services to any person, firm, corporation, institution or other entity in competition with the business of the Company. (c) Solicit Personnel. During the term of this Agreement and for a period of one year thereafter, solicit or influence or attempt to influence any person employed by the Company to terminate or otherwise cease his employment with the Company or become an employee of any competitor of the Company.


7. Withholding Taxes. All forms of compensation referred to in this letter are subject to reduction to reflect applicable withholding and payroll taxes.


8. Entire Agreement. This letter and the Exhibit attached hereto contain all of the terms of your employment with the Company and supersede any prior understandings or agreements, whether oral or written, between you and the Company.


9. Amendment and Governing Law. This employment agreement may not be amended or modified except by an express written agreement signed by you and the Chairman of the Board of Directors of the Company. The terms of this employment agreement and the resolution of any disputes will be governed by California law, without giving effect to the principles of conflict of laws.


10. Miscellaneous Provisions.


(a) Amendments and Waivers. Any term of this Agreement may be amended or waived only with the written consent of the parties.


(b) Severability. If one or more provisions of this Agreement are held to be unenforceable under applicable law, the parties agree to renegotiate such provision in good faith. In the event that the parties cannot reach a mutually agreeable and enforceable replacement for such provision, then (i) such provision shall be excluded from this Agreement, (ii) the balance of




Ron Jankov


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April 12, 2000


the Agreement shall be interpreted as if such provision were so excluded and (iii) the balance of the Agreement shall be enforceable in accordance with its terms.


(c) Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together will constitute one and the same instrument.


(d) Arbitration. Any dispute or claim arising out of or in connection with this Agreement will be finally settled by binding arbitration in San Jose, California in accordance with the rules of the American Arbitration Association by one arbitrator appointed in accordance with said rules. The arbitrator shall apply California law, without reference to rules of conflicts of law or rules of statutory arbitration, to the resolution of any dispute. Judgment on the award rendered by the arbitrator may be entered in any court having jurisdiction thereof. Notwithstanding the foregoing, the parties may apply to any court of competent jurisdiction for preliminary or interim equitable relief, or to compel arbitration in accordance with this paragraph, without breach of this arbitration provision. This Section 10(d) shall not apply to the Confidentiality Agreement.






Ron Jankov


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April 12, 2000


We hope that you find the foregoing terms acceptable. You may indicate your agreement with these terms and accept this offer by signing and dating both the enclosed duplicate original of this letter and the enclosed Proprietary Information and Inventions Agreement and returning them to us. As required by law, your employment with the Company is also contingent upon your providing legal proof of your identity and authorization to work in the United States. This offer, if not accepted, will expire at the close of business on Wednesday, April 12, 2000.


We look forward to having you join us on or before Wednesday, April 12, 2000


If you have any questions, please contact us.


[Signature Page Follows]




Ron Jankov


Page 6



April 12, 2000


Very truly yours,














/s/    Len Perham






/s/    Norman Godinho












Len Perham






Norman Godinho



Chairman of the Board of Directors






Acting Chief Executive Officer


I have read and accept this employment offer:



/s/ Ron Jankov


Ron Jankov

Dated: 4-12, 2000



Exhibit A: Agreement Regarding Confidentiality & Inventions

Appendix A: Letter Dated April 12, 2000


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Exhibit 10.9





THIS CHANGE-IN-CONTROL AGREEMENT (this “Agreement”), made and entered into as of                            , 2005, by and between NETLOGIC MICROSYSTEMS, INC., a Delaware corporation (“NetLogic”), and                      (the “Officer”).


WHEREAS, NetLogic considers it essential to its best interests to foster the continued employment of key management personnel and recognizes the distraction and disruption that the possibility of a Change in Control (as defined in Section 1(d) below) may raise to the detriment of NetLogic and its stockholders; and


WHEREAS, NetLogic has determined to take appropriate steps to reinforce and encourage the continued attention and dedication of key management personnel to their assigned duties in the face of a possible Change in Control;


NOW, THEREFORE, in consideration of the premises and the mutual covenants contained herein, NetLogic and the Officer hereby agree as follows:




(a) “Base Salary” means the annual salary of the Officer at the time of termination of the Officer’s employment within the application of this Agreement.


(b) “Beneficiary” means (i) the person or persons named by the Officer, by notice to NetLogic, to receive any compensation or benefit payable under this Agreement or (ii) in the event of the Officer’s death, if no such person is named and survives the Officer, the Officer’s estate.


(c) “Board” means the Board of Directors of NetLogic.


(d) “Change in Control” means the occurrence of any of the following:


(i) an acquisition after the Effective Date by an individual, an entity or a group in one or more related transactions (excluding NetLogic or an employee benefit plan of NetLogic or a corporation controlled by NetLogic’s stockholders) of 45 percent or more of NetLogic’s common stock or voting securities; or


(ii) consummation of a complete liquidation or dissolution of NetLogic or a merger, consolidation, reorganization or sale of all or substantially all of NetLogic’ assets (collectively, a “Business Combination”) other than a Business Combination in which (A) the stockholders of NetLogic receive 50 percent or more of the stock of the corporation resulting from the Business Combination and (B) at least a majority of the board of directors of such resulting corporation were incumbent directors of NetLogic immediately prior to the consummation of the Business Combination, and (C) after which no individual, entity or group (excluding any corporation resulting from the Business Combination or any employee benefit plan of such corporation or of NetLogic) who did not own 45 percent or more of the stock of the resulting corporation immediately before the Business Combination owns 45 percent or more of the stock of such resulting corporation.

(e) “Good Reason” means, without the Officer’s prior written consent or acquiescence:


(i) assignment to the Officer of duties incompatible with the Officer’s position, failure to maintain the Officer in this position and its reporting relationship or a substantial diminution in the nature of the Officer’s authority or responsibilities;


(ii) reduction in the Officer’s then current Base Salary or in the bonus or incentive compensation opportunities or benefits coverage available during the term of this Agreement, except pursuant to an across-the-board reduction similarly affecting all senior executives of NetLogic;


(iii) termination of the Officer’s employment, for any reason other than death, disability, voluntary termination or Misconduct (as defined below);


(iv) relocation of the Officer’s principal place of business to a location more than 30 miles from the location of such office on the date of this Agreement;


(v) NetLogic’s failure to pay the Officer any material amounts otherwise vested and due the Officer hereunder or under any plan, program or policy of NetLogic; or


(vi) failure of a successor to NetLogic following a Change in Control to expressly assume or affirm Netlogic’s obligations under this Agreement as specified in Section 7.


(f) “Misconduct” means the commission of any act of fraud, embezzlement or dishonesty by the Officer, any unauthorized use or disclosure by the Officer of confidential information or trade secrets of NetLogic, or any other intentional misconduct by the Officer adversely affecting the business affairs of NetLogic in a material manner.


(g) NetLogic” when used herein shall be deemed to refer to NetLogic and any entity or entities that succeed to the assets and properties of NetLogic following a Change in Control, or any other corporation or other entity which is a subsidiary or parent of such successor entity or entities for whom the Officer is employed at any time within two years following the Change in Control.




This Agreement shall be effective immediately upon its execution by NetLogic and the Officer (the “Effective Date”) and shall remain in effect until the earliest to occur of: (a) termination of the Officer’s employment with NetLogic following a Change in Control (i) by reason of death or disability, (ii) by the Officer other than for Good Reason, or (iii) by NetLogic for Misconduct, or (b) two years after the date of a Change in Control.





In the event of termination of the Officer’s employment within two years following a Change in Control for Good Reason or by reason of death or disability, the Officer shall be entitled to the following:


(a) General Entitlement:


(i) the Officer’s Base Salary through the date of termination;


(ii) payment in lieu of any unused vacation, in accordance with NetLogic’s vacation policy and applicable laws then in effect;


(iii) reimbursement of any business expenses incurred by the Officer through the date of termination but not yet paid to the Officer;


(iv) any compensation under any deferred compensation plan of NetLogic or deferred compensation agreement with NetLogic then in effect;


(v) any other compensation or benefits, including without limitation any benefits under long-term incentive compensation plans, any benefits under equity grants and awards and employee benefits under plans that have vested through the date of termination or to which the Officer may then be entitled in accordance with the applicable terms of each grant, award or plan; and


(vi) any annual or discretionary bonus earned but not yet paid to the Officer for any calendar year prior to the year in which the Officer’s termination occurs.


(b) Change-in-Control Entitlement:


Fifty percent of the Officer’s Base Salary, at the rate in effect immediately before such termination, such amount to be paid to the Officer in a cash lump sum within 30 business days after the date of termination.


(c) Determination of Amount of Payment. In the event that any payments or other benefits received or to be received by the Officer pursuant to this Agreement (“Payments”) would (i) constitute a “parachute payment” within the meaning of Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”), and (ii) but for this Section 3(c), be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then, in accordance with this Section 3(c), such Payments shall be reduced to the maximum amount that would result in no portion of the payments being subject to the Excise Tax, but only if and to the extent that such a reduction would result in the Officer’s receipt of Payments that are greater than the net amount that the Officer would receive hereunder (after application of the Excise Tax) if no reduction were made.


The amount of required reduction, if any, shall be the smallest amount so that the Officer’s net proceeds with respect to the Payments (after taking into account payment of any Excise Tax) shall be maximized, as determined by the Officer. The Officer’s determination of any required reduction pursuant to this Section 3(c) shall be conclusive and binding upon NetLogic. NetLogic shall reduce Payments in accordance with this Section 3(c) only upon written notice from the Officer indicating the amount of such reduction, if any. If the Internal Revenue Service (the “IRS”) determines that a Payment is subject to the Excise Tax, then the following paragraph shall apply.



Notwithstanding any reduction described in the immediately preceding paragraph (or in the absence of any such reduction), if the IRS determines that the Officer is liable for the Excise Tax as a result of the receipt of Payments, then the Officer shall be obligated to pay back to NetLogic, within 30 days after final IRS determination, an amount of the Payments equal to the “Repayment Amount.” The Repayment Amount shall be the smallest such amount, if any, as shall be required to be paid to NetLogic so that the Officer’s net proceeds with respect to the Payments (after taking into account the payment of the Excise Tax imposed on such Payments) shall be maximized. Notwithstanding the foregoing, the Repayment Amount shall be zero if a Repayment Amount of more than zero would not eliminate the Excise Tax imposed on the Payments. If the Excise Tax is not eliminated pursuant to this paragraph, the Officer shall be responsible for and pay the Excise Tax.


(d) Release. NetLogic may require that, as a condition of receiving the foregoing Change in Control payment under subsection (b) or (c) above, the Officer execute a general release substantially in the form annexed hereto as Exhibit A, which upon execution shall be deemed incorporated herein by reference as a material part of this Agreement.


(e) Date of Termination. For purposes of this Section 3, the date of termination of Officer’s employment will be deemed to be the date on which any event listed in Section 1(a) is deemed to occur or the date of Officer’s death or disability.




NetLogic agrees that, if the Officer’s employment with NetLogic terminates, the Officer shall not be obligated to seek other employment or to attempt to reduce any amount payable to the Officer under this Agreement. Further, no amount of any payment hereunder shall be reduced by any compensation earned by the Officer as the result of employment by a subsequent employer or otherwise.




If the Officer’s employment is terminated by NetLogic because of the Officer’s Misconduct following a Change of Control, the Officer will not be entitled to receive any of the benefits enumerated in Section 3 other than the items described in Section 3(a)(i)-(iii) and, if so provided in the award or agreement applicable to such Officer, in Section 3(a)(iv) and/or (v).




Any notice or other communication required or permitted under this Agreement shall be in writing and shall be deemed to have been duly given when delivered by hand, electronic transmission (with a copy following by hand or by overnight courier), by registered or certified mail, postage prepaid, return receipt requested or by overnight courier addressed to the other party. All notices shall be addressed as follows, or to such other address or addresses as may be substituted by notice in writing:





To NetLogic:


To the Officer:



NetLogic Microsystems, Inc

1875 Charleston Road

Mountain ViewCA 94043

Fax: (408) 961-1092

Attention: Senior Director of Legal Affairs








(a) NetLogic’s Successors. Any successor to NetLogic (whether direct or indirect and whether by purchase, lease, merger, consolidate, liquidation or otherwise) or to all or substantially all of NegLogic’s business and/or assets shall assume NetLogic’s obligations under this Agreement in the same manner and to the same extent as NetLogic would be required to perform such obligations in the absence of a succession.


(b) Officer’s Successors. Without the written consent of NetLogic, the Officer shall not assign or transfer this Agreement or any right or obligation under this Agreement to any other person or entity. Notwithstanding the foregoing, the terms of this Agreement and all rights of the Officer hereunder shall inure to the benefit of, and be enforceable by, the Officer’s personal or legal representatives, executors, administrators, successors, heirs, distributes, devisees and legatees.




(a) Amendments. No provision of this Agreement may be amended, modified or waived unless such amendment, modification or waiver shall be agreed to in writing and signed by the Officer and by the Compensation Committee of the Board.


(b) Severability. If any provision of this Agreement shall be determined to be invalid or unenforceable by a court of competent jurisdiction, the remaining provisions of this Agreement shall be unaffected thereby and shall remain in full force and effect to the fullest extent permitted by law. If any provision of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions shall nevertheless continue in full force without being impaired or invalidated in any way.


(c) Governing Law. This Agreement shall be construed, interpreted and governed in accordance with the laws of the state of California, without reference to rules relating to conflicts of law.


(d) Inconsistencies. The terms of this Agreement supersede any inconsistent prior promises, policies, representations, understandings, arrangements or agreements between the parties, whether by employment contract or otherwise.


(e) Survival. Notwithstanding the termination of the term of this Agreement, the duties and obligations of NetLogic, if any, following the termination of the Officer’s employment following a Change in Control shall survive indefinitely.



(f) Withholding. NetLogic may deduct and withhold from any payments hereunder the amount that NetLogic, in its reasonable judgment, is required to deduct and withhold for any federal, state or local income or employment taxes.


(g) No Other Compensation; Employee at Will. Except as provided in Section 3 above, no amount or benefit shall be payable to the Officer under this Agreement in respect of termination of the Officer’s employment within two years following a Change in Control. This Agreement shall not be construed as creating an express or implied contract of employment and, except as otherwise agreed in writing between the Officer and NetLogic, the Officer is and shall remain an “employee at will” and shall not have any right to be retained in the employ of NetLogic.


(h) Counterparts. This Agreement may be executed in counterparts.


IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first above written.

































In consideration of the benefits I will receive under NetLogic Microsystems, Inc.’s Change in Control Agreement, I hereby release, acquit and forever discharge NetLogic Microsystems, Inc. (the “Company”), its parents, subsidiaries, predecessors, successors and affiliates, and each of their respective officers, directors, agents, servants, employees, attorneys stockholders and assigns (the “Released Parties”), of and from any and all claims, liabilities, demands, causes of action, costs, expenses, attorneys’ fees, damages, indemnities and obligations of every kind and nature, in law, equity, or otherwise, known and unknown, suspected and unsuspected, disclosed and undisclosed, arising out of or in any way related to agreements, events, acts or conduct at any time prior to and including the date I sign this Release Agreement. This release of claims includes, but is not limited to:




any and all claims and demands directly or indirectly arising out of or in any way connected with my employment with the Company or the termination of that employment, including, but not limited to, claims, demands or agreements related to salary, bonuses, commissions, vacation pay, personal time off, fringe benefits, expense reimbursements, sabbatical benefits, severance benefits, stock, stock options, any other ownership or equity interest in the Company, or any other form of compensation or benefit;




claims pursuant to any federal, state or local law, statute, common law or cause of action including, but not limited to, Title VII of the federal Civil Rights Act of 1964, as amended, or any other statute, agreement or source of law, the federal Age Discrimination in Employment Act of 1967, as amended (“ADEA”), the federal Americans with Disabilities Act of 1990, the Family and Medical Leave Act, the Employee Retirement Income Security Act, the Equal Pay Act, the Worker Adjustment and Retraining Notification Act, the California Fair Employment and Housing Act, as amended, and the California Labor Code;




all tort law claims, including claims for fraud, misrepresentation, defamation, libel, emotional distress and breach of the implied covenant of good faith and fair dealing; and




all claims arising under contract law, or the law of wrongful discharge, discrimination or harassment.


I represent that I have no lawsuits, claims or actions pending in my name, or on behalf of any other person or entity, against any of the Released Parties. I agree that in the event I bring a claim covered by this release in which I seek damages against the Company or in the event I seek to recover against the Company in any claims brought by a governmental agency on my behalf, this Agreement shall serve as a complete defense to such claims.

ADEA Waiver and Release: I acknowledge that I am knowingly and voluntarily waiving and releasing any rights I may have under the ADEA, as amended by the Older Workers Benefit Protection Act (“OWBPA”). I also acknowledge that the consideration given for the waiver and release herein is in addition to anything of value to which I was already entitled. I further acknowledge that I have been advised by this writing, as required by the ADEA, that: (a) my waiver and release do not apply to any rights or claims that may arise after the execution date of this Agreement; (b) I have been advised hereby that I have the right to consult with an attorney prior to executing this Agreement; (c) I have twenty-one (21) days from the date I receive this Agreement to consider this Agreement (although I voluntarily may choose to execute this Agreement earlier and, if I do so, I knowingly and voluntarily agree to waive the remaining days of the 21-day review period); (d) I have seven (7) days following the execution of this Agreement to revoke the Agreement; and (e) this Agreement shall not be effective until the later of (i) the date upon which the revocation period has expired, which shall be the eighth (8th) day after I execute this Agreement, or (ii) the date I return this Agreement, fully executed, to the Company.


I acknowledge that for this Release Agreement to be effective, I must sign and return it to the Company and I must not revoke it at any time during the above-referenced seven (7) day revocation period. I acknowledge that I have read and understand Section 1542 of the California Civil Code which reads as follows: “A general release does not extend to claims which the creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the debtor.” I hereby expressly waive and relinquish all rights and benefits under that section and any law of any jurisdiction of similar effect with respect to my release of any unknown or unsuspected claims I may have against any of the Released Parties.


I understand that this Release Agreement, together with the Change in Control Agreement, constitutes the complete, final and exclusive embodiment of the entire agreement between the Company and me with regard to the subject matter hereof. I am not relying on any promise or representation by the Company that is not expressly stated herein.




















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