Exhibit 10.4
 
 Private and Confidential




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/s/ Peter Kelly
    
    7/15/05Peter Kelly
    
    DateEVP, Global Operations
   /s/ A. Micallef
    
    7/15/05Andy Micallef
    
    DateVP, Front End Operations & Procurement
 Amar Bouakiz
HR Manager
1110 American Parkway NE
Allentown, PA 18107
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Attachment
 CompensationTotal Compensation
    
    Your total compensation arrangement has been developed under an approach aimed at maintaining your standard of living during the
international assignment at a level closely approximating the standard of living of a home country counterpart working for Agere
in Allentown, PA, whose base pay and family size are the same.Base Pay
    
    While on assignment in Singapore, base salary reviews and performance-related incentives will continue to be determined within
your Ageres United States guidelines.Base Salary
    
    250,000 USD
    
    Your annual base salary rate will continue to be paid from your home country payroll on a monthly basis.Stock Purchase Plan/Stock Options
    
    As you are eligible for our stock option and purchase plan, you may continue to participate in both at the point of origin plan.
Eligibility for equity-based programs, such as the stock option or stock purchase plan, will be determined in accordance with the
terms of each plan or program. Agere will not assume responsibility for any tax liability as a result of the exercise of stock
options. Agere views the exercising of stock options and other tax and investment decisions as solely your responsibility. A
professional tax consultation will be provided prior to your departure to assist you with decisions regarding these and other tax
matters.Tax Equalization
    
    The intent of the tax equalization program is that your ultimate tax deduction will be similar to that which you would have paid
in the home country had you not received assignment-related compensation or special tax considerations. This is subject to
certain limitations described more fully in the Tax Equalization Policy guidelines to be provided by your tax consultant.The policy guidelines have three major objectives:
 
    
    To ensure good business citizenship regarding international assignees tax compliance in every location in which the
Company operates and to eliminate the risk of non-compliance with local law, tax regulations, and exchange controls
    
    To ensure international assignee mobility in order to meet the Companys international staffing needs. This means, from a
tax perspective, the international assignee should have no incentive or disincentive to accept an assignment, to transfer from
one assignment to another or to be repatriated.
    
    To minimize assignment costs using effective tax planning techniques that are legally acceptable and practical to
implement
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Annual Hypothetical Tax(Negative Allowance)
    
    68,808 USD
    
    Income and social taxes assessed against an employee on an international assignment are
generally significantly higher than what a counterpart living in Allentown, PA and working for
the Company in Allentown, PA would incur. This results because taxable wages include not only
base salary and performance-related incentives (like bonuses), but also allowances, such as the
G&S Allowance, Company-paid housing, relocation, etc.The Company will pay, either directly or indirectly through reimbursement, the actual income tax
and social tax obligations arising from your total compensation arrangement. Your share will be
collected in two-steps:
Your estimated Share, called a Hypothetical Tax will be deducted from your base salary
during the tax year. This deduction works like payroll tax withholdings, but is not paid to
any host country or home country tax authority. The Hypothetical deducted from your base
salary during the current United States tax year will be at an annualized rate of 68,808 USD.
Incentive payments are also subject to a Hypothetical Tax at an appropriate level.
The Company will equalize the tax (except for spousal foreign earned income) on any outside
income (losses) through a tax equalization calculation that is made in connection with the
preparation and filing of your actual annual income tax return(s) with the appropriate host
country and home country taxing authorities. The tax equalization calculation, which also takes
any personal deductions into account, will determine your Actual Tax based on company sourced
income.The Actual Tax differs from the Hypothetical Tax in that the latter is an estimate, while
the former is the final for the involved tax year. When the sum total of the Hypothetical
Tax deductions collected during the tax year is less then the Actual Tax calculated, the
difference represents an amount due the Company from the employee. When the sum total of the
Hypothetical Tax Norm deductions collected during the tax year is greater than the Actual
Tax calculation, the difference represents an amount due the employee from the Company.
The accounting firm of KPMG will confidentially assist you in the preparation and filing of your
host country and home country tax returns and will prepare the tax equalization calculation.
You must cooperate with KPMG to ensure the accurate and timely preparation of your actual tax
returns.
 Pre-Departure Benefits/Services
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Familiarization Trip
    
    Provided before acceptance of assignment to aid in decision-making.
Reimbursement for one round-trip for assignee for up to nine (9) days (including travel time):
 
    
    Airfare according to Ageres business travel policy and normal and reasonable ground transportation
    
    Lodging and meal expenses according to Ageres business travel policy
    
    Reasonable miscellaneous expenses including luggage handling, customary gratuities, and duties upon initial entry into the host country
 Should be scheduled in conjunction with a business trip.Medical Examination
    
    Agere requires that assignees have physical health examinations prior to departure on assignment. Agere will reimburse all costs not covered by insurance.
The reimbursement includes any necessary tests or inoculations recommended by a responsible medical authority. You may also be required to pass certain
medical examinations, a condition of entry to the host country. You should contact International SOS at 215-245-4747, toll free 800-523-6586 or
www.internationalsos.com, member # 11BMS00117 to go over your special assignments medical requirementsVisa/Work Permit
    
    Your assignment is subject to a valid work permit being issued/renewed. The assignment becomes effective following the receipt/renewal of relevant work and
residence permits. We will coordinate the application for the necessary work permit/visa.Passports
    
    A valid passport is required to apply for a business visa or work permit. Your passport should be valid until at least six months after the date your global
assignment will end. If you do not currently possess a valid passport, Agere will reimburse you for expenses needed to obtain it.Personal, Financial,
Legal Considerations
    
    Updating/drawing up wills is recommended; necessary and reasonable associated costs reimbursed.Home Country Residence
    
    It is Ageres intent to cover the differences in housing costs between the home and host countries. This is done by providing a housing allowance in the host
location. As you are retaining your home during your assignment, you will not be charged a home country housing deduction. Home 
Maintenance 
Allowance
(Homeowner)
    
    429 USD
    
    .1% of original purchase price of home per monthfor routine maintenance of principal
home-country residence, property management expenses or storage of furnishings.
Minimum payment
of US$150/mo.

1st
year payment included as a Lump Sum.
 Documentation: HUD closing statement
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Tax Review Consultation
    
    You will participate in a tax planning review with a representative from KPMG, Ageres designated tax advisor. This tax consultation will provide you with
information regarding the potential tax impact that a long-term global assignment may have on your personal financial situation.Intercultural Training
    
    Agere will offer a formal two-day intercultural training program for you and your spouse/spousal equivalent, as well as for your accompanying children eight
years of age and older to assist you and your family in adjusting to a new culture, a new job, a new school, and a new way of life. This intercultural
training program is designed to integrate and balance corporate objectives and your personal and professional goals.International Assignee 
Relocation Allowance
    
    20,833 USD
    
    One-time allowance, amount = one months new base salary.
Covers non-reimbursable items like small appliances, renters
insurance, phone hookups, bank fees, drivers license.Expatriate Premium
    
    4,166.66 USD
    
    Monthly Expatriate Premium Allowance paid for the duration of
the assignment. To be issued by Agere US PayrollHome 
Automobile 
Disposition
    
    One-time allowance of US$2,000 per vehicle to assist with the disposition of up to two registered, operable automobiles (one if single, and two if accompanied
by family), with regard to sale, lease cancellation, storage, or shipment.
Documentation: Proof of ownership (Title-best documentation, if not available, registration)Spousal Support
    
    Separate annual lump sum payment of US$2,000 per assignment year for activities such as pursuing educational opportunities, job search assistance, purchasing
a computer, trip home, etc.Shipment of
Household Goods
    
    Agere-designated moving company will pack, insure, transport and unpack personal effects.
Furnished host country housing typically provided. Air shipment of personal effects and household
items using standard industry guidelines based on volume.
Container sizes:
           Married with dependents: one LDN size container (1000lbs.)
If furnished host housing not available and furniture allowance not provided, surface and air shipment as follows:
           Married with dependents: one 40 ft. container plus D container per adult, one E container (250 lbs.) per child
Insurance: Full replacement value, up to maximum of $150,000 for shipments using 40-foot container.Temporary Living
    
    Maximum reimbursable interim living period in home/host countries combined is 30 days.
Lodging, a meal and incidentals per diem (per diem 50% for children 12 and under) and limited auto rental is covered.
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En Route Travel
    
        Reimbursement for one-way transportation costs for IA and family via most direct route
 
    
    Airfare according to Ageres corporate travel policy
    
    Normal and reasonable rental car expense
    
    Lodging and meal expenses according to Ageres business travel policy
    
    Reasonable miscellaneous expenses including luggage handling, reasonable excess baggage fees, taxi and airport transfer expenses, customary
gratuities, and duties upon initial entry into the host country
 Post-Arrival Benefits/Services
 Host Country Housing Maximum
    
    Will Determine after your
exploratory Trip
    
    Housing at an international assignment location is determined
by taking into account family size, base salary level and the
types of housing available. Considering those factors and an
independent research firms survey, you should be able to find
suitable housing in Singapore.
If you rent housing that exceeds your housing allowance or
budget, the excess rent amount will be your responsibility to
pay.Settling-In Services
    
    To help ensure a smooth transition to the host country, assistance is available for the following:
 
    
    School information/appointments and registration
    
    Drivers license and auto registration
    
    Shopping fundamentals (groceries, appliances, furniture)
    
    Medical facility options
    
    International community networks
    
    Recreation/leisure
    
    Local law enforcement agencies
    
    Community registration
    
    Set up of local banking arrangements
    
    Identifying referrals for household help
    
    Introduction to public transportation options and emergency issues and procedures.
 Host Country Transportation
    
    During your assignment, you will be provided with a monthly transportation allowance
of S$3,600 as per our host country policy.  Cendant Mobility will assist you with the lease of a vehicle.Dependent Education
    
    -Local school for children 3 and up excluding college reimbursable.
- Reimbursement of expenses for normal curriculum at Intl/other school, if free localschools unacceptable; includes tuition,
registration fees, books, uniforms, if required, and transportation provided by the school.
If neither are available, Agere will designate nearest boarding school, reimburse education expenses and two round-trip economy
airfares per school year.Home study program and required tutoring also covered.
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Goods & Services
(G&S)
    
    1,335 USD (Monthly)
    
    G&S differential paid to compensate for higher prices in host location based on independent
consultant data.
Your G&S Allowance will be reviewed and adjusted for price movement in both the Host and Home
countrys G&S market baskets and by currency exchange rate movement as recommended by the
independent research firms revised survey data. G&S Allowance adjustments are also made in
conjunction with base salary increases and changes in your family size at the assignment
location.Vacation/Home Leave
    
    While on assignment in Singapore you will continue to earn and must schedule your vacation in accordance with your United States
Vacation Policy.
Agere will reimburse home leave airfare and reasonable travel expenses between your host and home location once a year for you
and your family after you have been in the host location for at least six months. Time used for home leave will be charged
against normal vacation time accrued.Personal Emergency Leave
    
    In the event of critical illness or death of a member of your (or your spouses) immediate family, Agere will reimburse
reasonable travel expenses beyond the amount that would normally have been incurred at home for you. Should you, your spouse or
any of your accompanying dependents suffer critical illness or death, Agere will provide round trip airfare to the host country
for one member of your immediate family living in the home country.Evacuation
    
    If there is an emergency evacuation due to the possibility of war, civil strife, sabotage, and/or natural disasters, Agere will
designate an evacuation site/city for you and your family. Agere will assume full transportation and living expenses for you and
your family while you are at the evacuation location.Worldwide EmergencyAssistance Services
    
    To safeguard you when traveling on business and while on an expatriate assignment, Agere has contracted International SOS to
provide worldwide emergency assistance services 24 hours a day, 365 days a year.
Some of the services available are:
 Security evacuation assistance
 Access to security crisis center
 Emergency translation services
 Country Guides
 Access to International SOS Clinics (Primary Care and Emergency Services)
 Travel Security Reports
For more information visit: www.internationalsos.com
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Administrative Services: Terms & Conditions
 Work Schedule
    
    You agree to observe the work schedule in effect at your place of assignment and that you will not be entitled to overtime pay
should the responsibilities of your position require, from time to time, that your work exceed this schedule.Code of Conduct
    
    While on assignment in Singapore, the Company expects that you will obey other countries laws and regulations and respect lawful
customs. Naturally, we would expect that you would not engage in any employment or business which conflicts with the Companys
business interest.Repayment Agreement
    
    In the event you voluntarily terminate your employment before the end of your assignment or within six months following
repatriation, you will be required to reimburse Agere for all the relocation expenses and assignment benefits paid to you or on
your behalf by AgereExtension of Assignment
    
    In the event you remain on assignment with the Company in Singapore beyond the intended duration of 36 months, the Company
reserves the right to amend the terms and conditions outlined in this letter.Reassignment
    
    You are subject to reassignment to any of the companys locations. On reassignments, the company attempts to take into account a
number of factors, including personal goals and desires, experience, performance, needs of the Company, etc. While a sincere
effort is made to accommodate the needs and requirements of you as an individual, the final decision lies with the Company.Termination of Employment
    
    The laws of your home country will govern the terms and conditions of your employment and termination of employment, voluntary or
involuntary.
In the case of an involuntary termination, Agere will provide return trip airfare for you to your point of origin in accordance
with business travel policy, and will return all your household goods to your point of origin according to your original
agreement. The return must be completed within 30 days after the effective date of termination.Career /Repatriation Planning
    
    The process of managing your career and planning for repatriation requires as much care and attention as your initial move to the
host country. Please make sure that:
You keep in touch with your home country
Your performance and development is tracked
You receive guidance for career planning and that suitable job opportunities are monitored for repatriation.
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Repatriation
    
    As part of your repatriation back to your home country, Agere will cover the following benefits:
Host Country Departure Programs: Lease Cancellation, etc.
Resettlement Allowance (lump sum equal to one months salary)
Household Goods (same size shipment as expatriation  container sizes)
Return Travel Expenses (transportation via most direct route reimbursed)
Temporary Living Expenses (combined home/host countries reimbursement, 30 days)
Repatriation integration program in support of your repatriation to the United States
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