PLX TECHNOLOGY, INC.
2006 BONUS AND DEFERRED COMPENSATION PLAN
(Established as of January 1, 2006)
Introduction . The Company hereby adopts the Plan, effective as of January 1, 2006. The
purpose of the Plan is to encourage performance and achieve retention of a select group of executive employees
of PLX Technology, Inc. This document constitutes the written instrument under which the Plan is maintained.
“ Cause ” means (i) conviction of a felony or a crime of moral turpitude; (ii)
misconduct that results in harm to the Company; (iii) material failure to perform assigned duties; or (iv)
willful disregard of lawful instructions from the chief executive officer of the Company or the Board of
Directors relating to the business of the Company or any of its affiliates.
“ Code ” means the Internal Revenue Code of 1986, as amended.
“ Committee ” means the Compensation Committee of the Company’s Board
“ Company ” means PLX Technology, Inc., a Delaware corporation.
“ Disability ” means that a Participant has become disabled as defined in Code
Section 409(a)(2)(C), the regulations thereunder, and any other published interpretive authority, as issued
or amended from time to time. 1
“ Eligible Employee ” means each employee who is eligible for the plan as
designated by the Committee as set forth in approved minutes.
“ ERISA ” means the Employee Retirement Income Security Act of 1974, as
“ Net Pro Forma Operating Income ” means the Company’s pro forma
operating income for 2006, as reported in its earnings release for its fiscal year ending December 31,
2006, calculated after the payment of all bonuses. Net Pro forma Operating Income for purposes of
calculating bonuses under this plan excludes all stock option expenses and any adjustments as deemed
necessary be the Compensation Committee for fiscal year 200