PortalPlayer – [PortalPlayer, Inc. Letterhead] (August 3rd, 2004)
Stock Options. It will be recommended, subject to the approval of our Board of Directors, that you receive 537,500 employee stock options under the provisions of PortalPlayers Employee Stock Option Plan. Such options shall vest over four years with a fourth of the options vesting at the end of the first year (a 12 month Cliff) and then monthly thereafter. The preceding statements regarding stock options do not constitute a promise of compensation and are not intended to create any obligation on the part of the Company.