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EXHIBIT 10.7 Execution Version LSI Logic Corporation
(Lease B)   Omnibus Amendment in respect of Lease (Lease B)
Lessor Assignment Agreement (Lease B) Dated as of September 16, 2004 among Bank of the West,
as Lessor, LSI Logic Corporation,
as Lessee, Wells Fargo Bank, National Association, as Series A Assignee
ABN Amro Bank, N.V., as Series A Assignee and Wells Fargo Bank Northwest, National Association, as Agent




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LSI Logic Corporation
(Lease B) Omnibus Amendment (Lease B) This Omnibus Amendment (Lease B) (this Omnibus Amendment) is dated as of
September 16, 2004 and is among LSI Logic Corporation, a Delaware corporation
(LSIor Lessee); Bank of the West (Lessoror Seller); Wells Fargo Bank,
Northwest, as a Series A Assignee; ABN Amro Bank N.V., as a Series A Assignee
(each, an Assignee); and Wells Fargo Bank Northwest, National Association,
not in its individual capacity, except as expressly stated in the Lease, but
solely as Agent (Wells Fargoor Agent). Recitals A. Lessor, Lessee and Agent have heretofore entered into that certain
Lease and Security Agreement (Lease B), dated as of August 6, 2004 (the
Lease), under and pursuant to which Lessee agreed to lease from Lessor, and
Lessor agreed to lease to Lessee, certain Items of Equipment. Capitalized
terms used but not otherwise defined in this Omnibus Amendment shall have the
meanings assigned to such terms in the Lease. B. Lessor, the financial institutions defined therein as Assignees, the
Agent and the financial institutions identified therein as Securities
Intermediaries have heretofore entered into that certain Lessor Assignment
Agreement (Lease B), dated as of August 6, 2004 (the Lessor Assignment
Agreement) under and pursuant to which Seller sold and assigned to the
Assignees, and the Assignees purchased and assumed from Seller, a percentage
interest in Sellers right, title, interest and obligations with respect to the
Series A Lease Balance and/or the Series B Lease Balance, as applicable, and,
in each case the rights appurtenant thereto. C. The parties now desire to amend the Lease and the Lessor Assignment
Agreement in the manner set forth below. D. All requirements of law have been fully complied with and all other
acts and things necessary to make this Omnibus Amendment a legal, valid and
binding instrument according to its terms for the purposes herein expressed
have been done or performed. Now, therefore, upon the full and complete satisfaction of the conditions
precedent to the effectiveness of this Omnibus Amendment set forth in Section 3
hereof, and in consideration of good and valuable consideration, the receipt
and sufficiency of which is hereby acknowledged, the parties hereto agree as
follows: Agreement Section 1. Amendment to the Lease. Section 1.1. Section 22.5.Section 22.5 of the Lease shall be and is
hereby amended and restated in its entirety to read as follows:




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LSI Logic Corporation
(Lease B) Section 22.5. Amendments; Complete Agreements.
This Lease and the other Operative Documents
exclusively and completely state the rights of Agent,
Lessor and Lessee with respect to the Overall
Transaction and supersede all prior agreements, oral
or written, with respect thereto. Subject to the
following paragraph, no variation, modification,
amendment or waiver of this Lease shall be valid
unless in writing and signed by Agent and Lessee. Notwithstanding anything contained herein or in
any other Operative Document, so long as no Lease
Event of Default exists at the time of execution, no
amendment, modification or waiver of this Lease or any
other Operative Document (other than any Control
Agreement or the applicable sections of the Cash
Collateral Agreement or the Lease which relate solely
to such Control Agreement) shall be effective even
after execution by the applicable parties to such
amendment, modification or waiver unless and until
Lessee shall have delivered to Agent an identical
amendment, modification or waiver to Lease A or the
corresponding Operative Documents (other than any
Control Agreement or the applicable sections of the
Cash Collateral Agreement or the Lease which relate
solely to such Control Agreement) (as such terms are
defined in Lease A), as applicable, in each case
executed by the applicable parties. Notwithstanding the foregoing, nothing contained
herein shall be construed to require the consent of
Lessee to any amendment, modification or waiver of any
Operative Document unless such consent of Lessee is
expressly required by the terms of such Operative
Document. Section 2. Amendments to the Lessor Assignment Agreement. Section 2.1. Section 3.1.Section 3.1 of the Lessor Assignment Agreement
shall be and is hereby amended and restated in its entirety to read as follows: Section 3.1. Sole Administration by Agent. (a)
The parties hereto agree that the Agent will
administer the assignments and transactions
contemplated hereby in accordance with the agency
provisions of Article XX of the Lease. Each Assignee
hereby agrees to and shall have the benefit of such
provisions and hereby joins in the appointment of Wells Fargo Bank
Northwest, National Association, as Agent. -2-




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LSI Logic Corporation
(Lease B) (b) The parties hereto also agree that the term
Lessoras used in Article XX of the Lease (except
for Section 20.3 of the Lease (other than the second
and fifth sentence of such Section 20.3 of the Lease))
shall mean each Assignee and Seller and that the term
Lessoras used in Section 20.3 of the Lease (other
than the second and fifth sentence of such Section
20.3 of the Lease), Article XII of the Lease and
certain other relevant sections of the Lease shall
have the meaning as further described in Section
3.1(b)2 below. Accordingly: 1. Agent hereby agrees to promptly deliver to
each Assignee copies of each notice, report,
certificate, document, amendment request, waiver
request and other information that (A) Agent is
required to deliver to Lessor under the Lease or the
other Operative Documents and (B) that Agent receives
from Lessor pursuant to the Lease or the other
Operative Documents. 2. (i) (A) Any act, right, remedy, approval or
power by Lessor or Agent at the direction of Lessor,
as applicable, under the Lease or the other Operative
Documents in connection with the exercise of remedies
and/or the enforcement of the Operative Documents or
(B) any amendment, modification or waiver of any
provision of the Lease or the other Operative
Documents at any time that a Lease Event of Default
exists, in either case, which requires the consent of
or direction by Lessor or Agent at the direction of
Lessor, as applicable, shall require the consent of or
direction by Assignees and Lessor collectively,
holding more than 50% of the outstanding Lease Balance
and (ii) (A) with respect to any other act, right,
approval or power by Lessor or Agent at the direction
of Lessor, as applicable, under the Lease or the other
Operative Documents or (B) any amendment, modification
or waiver of any provision of the Lease or the other
Operative Documents (other than any Control Agreement
or the applicable sections of the Cash Collateral
Agreement or the Lease which relate solely to such
Control Agreement, in each case which shall be
governed by clause (VI) of the following proviso) at
any time that a Lease Event of Default does not exist,
in either case, which requires the consent of or
direction by Lessor or Agent at the direction of
Lessor, as applicable, shall require the consent of or
direction by Assignees, Lessor, Assignees (as defined
in Lease A)
and Lessor (as defined in Lease A) collectively
holding more than 50% of the sum of (x) the
outstanding Lease Balance plus(y) the outstanding
Lease Balance (as defined in Lease A); providedthat -3-




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LSI Logic Corporation
(Lease B) (I) any act, right, remedy, approval or power by
Lessor or Agent at the direction of Lessor, as
applicable, under the Lease or the other Operative
Documents or any amendment, modification or waiver
thereof purporting to (i) release any Item of
Equipment or other Lessee Collateral (other than any
Cash Collateral, the release of the lien in which
shall be governed by Sections 3 and 7 of the Control
Agreements) from the Liens created by the Operative
Documents (except as expressly provided in the Lease),
(ii) amend, modify or waive (A) clause (i)(A) or
clause (i)(B) of this Section 3.1(b)2 or (B) clause
(I), (II), (III), (IV), (V) or (VI) of this proviso,
(iii) amend, modify or waive Section 18.3(a) of the
Lease or any defined term used in Section 18.3(a) of
the Lease in a manner that makes Section 18.3(a) of
the Lease less restrictive to Lessee, or (iv) amend,
modify or waive Section 5.1 of the Lease, which
requires the consent of or direction by the Lessor or
Agent shall require the consent of or direction by
each Assignee and Lessor, (II) any act, right, remedy,
approval or power by Lessor or Agent at the direction
of Lessor, as applicable, under the Lease or the other
Operative Documents or any amendment, modification or
waiver thereof relating, in each case, to Section 8.3
or 8.6 of the Lease, or waiving any Lease Event of
Default under the Lease after the Sale Option has been
exercised, which requires the consent of or direction
by the Lessor or Agent at the direction of Lessor, as
applicable, shall require the consent of or direction
by Assignees holding more than 50% of the sum of (x)
the outstanding Series A Lease Balance plus(y) the
outstanding Series B Lease Balance and the consent of
or direction by Lessor, (III) any act, right, remedy,
approval or power by Lessor or Agent, at the direction
of Lessor, as applicable, under the Lease or the other
Operative Documents or any amendment, modification or,
waiver thereof (i) relating to the Sale Option
provisions contained in Article XV of the Lease (other
than the right to receive the Sale Recourse Amount or
any modification of Lessees obligation with respect
to the Sale Recourse Amount) or Section 11.7 of the
Lease or (ii) purporting to amend the Lease or any
other Operative Document in connection with an
assignment by Lessor of its interests and obligations
under the Operative Documents pursuant to Section
19.1(a)(ii) of the Lease, if such amendment modifies
or adds representations and warranties, covenants,
events of default or other provisions to the Operative
Documents that are more restrictive to Lessee or more
favorable to the Assignees than the provisions of the
Operative Documents as of the Delivery Date, which
requires the consent of or direction by Lessor or by
Agent, at the direction of Lessor, shall, -4-




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LSI Logic Corporation
(Lease B) in each
case, require the consent of or direction by Lessor
only, (IV) any act, right, remedy, approval or power
by Lessor or Agent, at the direction of Lessor, under
the Lease or any other Operative Document or any
amendment, modification or waiver thereof relating to
the provisions regarding the sale or possession of, or
enforcement of the lien on, the Equipment in
connection with the enforcement of remedies pursuant
to Section 12.2 or Section 12.3 of the Lease which
requires the consent of or direction by Lessor or
Agent, at the direction of Lessor, as applicable,
shall require the consent of or direction by the
Series B Assignees holding more than 50% of the
outstanding Series B Lease Balance, (V) any act,
right, remedy, approval or power by Lessor or Agent,
at the direction of Lessor, as applicable, under the
Lease or the other Operative Documents or any
amendment, modification or, waiver thereof waiving a
Payment Default with respect to a Series or modifying
the definition (including the definition of any
defined term used in any such definition), or the
method of calculation of any payment of Basic Rent
with respect to a Series, Series A Lease Balance,
Series B Lease Balance, Series C Lease Balance or
Lessors Interest Related Lease Balance with respect
to a Series (as defined below), Accrual Rent with
respect to a Series or any other amount payable
hereunder with respect to a Series, which requires the
consent of or direction by Lessor or Agent, at the
direction of Lessor, shall require the consent of each
Assignee of such Series and, with respect to interests
in the Series B Lease Balance, the Series C Lease
Balance or the Lessors Interest Related Lease
Balance, the consent of Lessor (Seriesshall mean,
as the context may require, the rights and obligations
with respect to (a) the Series A Lease Balance, (b)
the Series B Lease Balance, (c) the Series C Lease
Balance or (d) the Lessors Interest Related Lease
Balance), (VI) any act, right, remedy, approval or
power by Lessor or Agent, at the direction of Lessor,
under any Control Agreement or the Cash Collateral
Agreement, or any amendment, modification or waiver of
the Control Agreement or the applicable sections of
the Cash Collateral Agreement or the Lease which
relate solely to such Control Agreement or to the Cash
Collateral which is the subject of such Control
Agreement, in each case which requires the consent of
or direction by Lessor or Agent, at the direction of
Lessor, shall require the consent of or direction
solely by the Assignee or Lessor for whose ultimate
benefit the Securities
Intermediary party to such Control Agreement holds the
Cash Collateral in the Cash Collateral Account which
is the subject of such Control Agreement, and (VII)
any amendment or -5-




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LSI Logic Corporation
(Lease B) modification purporting to modify (i)
this clause (VII), (ii) clause (ii)(A) or clause
(ii)(B) of this Section 3.1(b)2 or (iii) Section 22.5
of the Lease, shall require the consent of or
direction by each Assignee, Lessor, each Assignee (as
defined in Lease A) and Lessor (as defined in Lease
A). 3. Except as set forth in the third paragraph of
clause (c) below, Lessor shall have no responsibility,
obligation or liability whatsoever with respect to the
administration of the assignments or the transactions
contemplated hereby (including but not limited to any
item listed in this Section 3.1(b)). (c) Without limiting the rights of any
Assignee(s) under Section 3.1(b) to direct the Agent
to exercise any act, right, remedy, approval or power
under the Operative Documents, in the event the Lessor
is permitted by the terms of the Lease to exercise any
remedy or take any remedial action under the Operative
Documents, Lessor may and, in the event the Lessor
and/or Assignees holding the requisite percentage of
the Lease Balance necessary to exercise a remedy under
Section 3.1(b) above instruct Lessor to appoint the
Agent to exercise such remedy, Lessor shall appoint
Agent as its agent for purposes of exercising such
remedy or taking such remedial action (and Agent
hereby agrees to accept such appointment) whereupon
Lessor shall have no liability or responsibility
whatsoever with respect thereto, except as otherwise
expressly set forth in the Operative Documents. Upon the occurrence of a Lease Event of Default and
provided that the requisite percentage of Lessor
and/or Assignees required to give any approval or
direction to the Agent with respect to the
acceleration of the Lease Balance has not been
obtained, the Agent shall, at the direction of Lessor
or any Assignee, request (the Acceleration Request)
that the Lessor (if applicable) and each Assignee
elect whether or not to accelerate the Lease Balance
pursuant to Section 12.2(a)(i) of the Lease; provided
that if (i) the Lease Event of Default (A) is of the
type described in Section 12.1(a) or 12.1(c) of the
Lease, (B) has existed for at least sixty (60) days
and (C) an Acceleration Request has been delivered by
Agent on or after such sixty (60) day period and (ii)
Lessor or an Assignee fails to notify the Agent in
writing of whether or not Lessor or such Assignee has elected to accelerate the
Lease Balance within two weeks following Lessors or
such Assignees receipt of the Acceleration Request,
then the Lease Balance held by -6-




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LSI Logic Corporation
(Lease B) Lessor or such
Assignee, as applicable, shall be deemed to be not
outstanding for the purpose of determining whether the
requisite percentage of the Lessor and Assignees have
given any approval or directed the taking of any
action by Agent with respect to acceleration of the
Lease Balance pursuant to Section 12.2(a)(i) of the
Lease. Lessor shall be indemnified and held harmless by
Assignees pursuant to the provisions of Section 4.5
hereof and shall not be liable for any such action
taken or omitted to be taken by it under or in
connection with this Agreement or the other Operative
Documents except for (i) its own gross negligence,
(ii) its willful misconduct, (iii) its negligence in
the handling of funds or (iv) its breach of any of the
Operative Documents. Additionally, Lessor shall not
be responsible in any manner to the Assignees for any
recital, statement, representation or warranty made by
the Lessee, or any officer thereof, contained in any
Operative Document, or in any certificate, report,
statement or other document referred to or provided
for in, or received by Lessor under or in connection
with any Operative Document, or the validity,
effectiveness, genuineness, enforceability or
sufficiency of any Operative Document, or for any
failure of the Lessee or any other party to any
Operative Document to perform its obligations
thereunder. Lessor shall not be under any obligation
to the Assignees to ascertain or to inquire as to the
observance or performance of any of the agreements
contained in, or conditions of, any Operative
Document, or to inspect the properties, books or
records of the Lessee. Lessor shall be entitled to rely, and shall be fully
protected in relying, upon any writing, resolution,
notice, consent, certificate, affidavit, letter,
telegram, facsimile, telex or telephone message,
statement or other document or conversation reasonably
believed by it to be genuine and correct and to have
been signed, sent or made by the proper person or
persons, and upon advice and statements of legal
counsel (including counsels to the Lessee),
independent accountants and other experts selected by
Lessor or the Lessee. (d) Agent hereby represents and warrants to
Assignees that the representations and warranties of
Agent set forth in Section 17.3 of the Lease are true
and correct in all material respects. -7-




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LSI Logic Corporation
(Lease B) (e) In the event that LSI and/or any Affiliate of
LSI (each, an LSI Assignee) is or becomes an
Assignee hereunder, no LSI Assignee shall have any
rights whatsoever as an Assignee with respect to any
amendments, modifications, waivers, approvals or
consents, or directions with respect to the taking of
any action, in each case, hereunder or under any other
Operative Document and for the purpose of determining
whether the requisite percentage of Assignees approved
or consented to any amendment, modification, waiver or
consent to be given under any Operative Document, or
have given any other approval or directed the taking
of any action provided herein or therein to be taken
upon the direction of all or a specified percentage of
the Assignees, the principal amount of the Lease
Balance directly or indirectly held by any LSI
Assignee shall be deemed to be not outstanding. (f) Each Series A Assignee hereby acknowledges
and agrees that in the event that such Series A
Assignee becomes the subject of any voluntary or
involuntary case or proceeding under any bankruptcy,
insolvency, receivership or similar law now or
hereafter in effect, and as a result thereof the
Series A Cash Collateral held by or benefiting such
Series A Assignee becomes a part of such Series A
Assignees bankruptcy estate, then (i) such Series A
Assignee shall be deemed to have set off and applied
such Series A Cash Collateral against any amounts due
with respect to the portion of the Series A Lease
Balance secured by such Series A Cash Collateral and
(ii) the Lessee shall be deemed to have paid in full
any and all Rent due with respect to the Series A
Lease Balance secured by such Series A Cash
Collateral, in each case in an amount not to exceed
such Series A Cash Collateral. Section 2.2. Section 6.2.Section 6.2 of the Lessor Assignment Agreement
shall be and is hereby amended and restated in its entirety to read as follows: Section 6.2. Amendments and Waivers. No
amendment or waiver of any provision of this
Agreement, and no consent with respect to any
departure by any party from the terms hereof, shall be
effective unless the same shall be in writing and
signed by Agent, Lessor and each Assignee affected
thereby (and, with
respect to (i) Section 3.1(b) and (ii) the last
sentence of 4.4(b), the Lessee) and then any such
waiver or consent shall be effective only in the
specific instance and for the specific purpose for
which given. -8-




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LSI Logic Corporation
(Lease B) Section 3. Conditions to Effectiveness. This Omnibus Amendment shall become effective on September 16, 2004 (the
Effective Date) upon the satisfaction of the following conditions precedent: (a) This Omnibus Amendment shall have been duly authorized, executed
and delivered by each of the parties hereto; (b) After giving effect to this Omnibus Amendment, the Operative
Documents shall be in full force and effect as to all parties and no
Lease Default or Lease Event of Default shall have occurred or be
continuing; (c) Lessee shall have paid the reasonable fees and expenses of
Chapman and Cutler LLP and Lessors special counsel, in each case in
connection with the negotiation, preparation, approval, execution and
delivery of this Omnibus Amendment; and (d) The representations and warranties of the Lessee set forth
herein shall be true and correct. Section 4. Representations and Warranties. Section 4.1. Representations and Warranties.Lessee hereby represents and
warrants to Lessor, Agent and the Assignees that, as of the date hereof: (a) No Lease Default or Lease Event of Default has occurred and is
continuing, or will occur as a result of, or after giving effect to, this
Omnibus Amendment; (b) After giving effect to this Omnibus Amendment, the
representations and warranties of Lessee contained in Section 17.1 of the
Lease are true and correct on and as of the date hereof, except to the
extent such representations and warranties relate to an earlier date, in
which case such representations and warranties shall have been true and
correct in all material respects on and as of such earlier date. For
purposes of the foregoing representation, the term Operative Documents
as used in Section 17.1 of the Lease shall include this Omnibus Amendment
and the other Operative Documents as amended hereby; (c) Each of the Operative Documents is in full force and effect; and (d) The provisions set forth in Sections 1 and 2 hereof are set
forth, mutatis mutandis,in the Omnibus Amendment (Lease A), dated as of
the date hereof, among LSI, as lessee, Wells Fargo, as agent and the
financial institutions party thereto. -9-




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LSI Logic Corporation
(Lease B) Section 4.2. Reaffirmation of Lien and Security Interest of Lessee.
Lessee hereby reaffirms its grant to Lessor of a lien on and security interest
in the Lessee Collateral as set forth in the Lease and the Cash Collateral
Agreement, as applicable, and in the case of the Lease, as amended pursuant
hereto. Section 5. Miscellaneous. Section 5.1. Construction.This Omnibus Amendment shall be construed in
connection with and as part of the Operative Documents, and except as modified
and expressly amended by this Omnibus Amendment, all terms, conditions and
covenants contained in the Operative Documents are hereby ratified and shall be
and remain in full force and effect. Section 5.2. Headings and Table of Contents.The headings of the Sections
of this Omnibus Amendment are inserted for purposes of convenience only and
shall not be construed to affect the meaning or construction of any of the
provisions hereof and any reference to numbered Sections, unless otherwise
indicated, are to Sections of this Omnibus Amendment. Section 5.3. References.Any and all notices, requests, certificates and
other instruments executed and delivered after the execution and delivery of
this Omnibus Amendment may refer to the Lease, the Lessor Assignment Agreement
and the other Operative Documents without making specific reference to this
Omnibus Amendment but nevertheless all such references shall be deemed to
include this Omnibus Amendment unless the context otherwise requires. Section 5.4. Counterparts.This Omnibus Amendment may be executed in any
number of counterparts, each executed counterpart constituting an original but
all together only one amendment. Section 5.5. Governing Law.This Omnibus Amendment shall be governed by,
and construed in accordance with, the internal laws of the State of California,
without regard to the conflict of laws principles of such State, except as to
matters relating to the Lessor Assignment Agreement, which shall be governed
by, and construed in accordance with, the internal laws of the State of New
York, without regard to conflict of laws principles of such State. [Signature Pages Follow] -10-




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LSI Logic Corporation
(Lease B) In Witness Whereof, each of the undersigned have caused this Omnibus
Amendment to be duly executed and delivered by their properly and duly
authorized officers as of the day and year first above written. LSI Logic CorporationBy:
    
    /s/ Anita PrasadName:
    
    Anita PrasadTitle:
    
    Vice President, Treasury and Tax
 ABN AMRO Bank N.V., as a Series A AssigneeBy:
    
    /s/ Panida WongchantaraName:
    
    Panida WongchantaraTitle:
    
    Vice PresidentBy:
    
    /s/ Bassam WehbeName:
    
    Bassam WehbeTitle:
    
    Director
 Wells
Fargo Bank Northwest, National
Association, not in its individual
capacity, but solely as AgentBy:
    
    /s/ Val T. OrtonName:
    
    Val T. OrtonTitle:
    
    Vice President
 Bank of the West, as LessorBy:
    
    /s/ David W. MaurerName:
    
    David W. MaurerTitle:
    
    Vice President
 Wells Fargo Bank, National Association, as a Series A AssigneeBy:
    
    /s/ Matt JurgensName:
    
    Matt JurgensTitle:
    
    Vice President