Form of Nonqualified Share Option Agreement



 Exhibit 10.24 
 U.S. Executives – Share Option Agreement 
 NON-QUALIFIED SHARE OPTION AGREEMENT 
 UNDER THE AMENDED AND RESTATED EQUITY INCENTIVE PLAN 
 FOR EXECUTIVE EMPLOYEES OF 
 AVAGO TECHNOLOGIES LIMITED AND SUBSIDIARIES 
 This Non-Qualified Share Option Agreement (this “Agreement”), is entered into as of «Grant_Date» by and between Avago Technologies
Limited, a company organized under the laws of Singapore, hereinafter referred to as the “Company,” and «Name», an employee of the Company or a Subsidiary (as defined below) or Affiliate (as defined below) of the Company,
hereinafter referred to as “Optionee.” 
 WHEREAS, the Company wishes to afford the Optionee the opportunity to purchase ordinary
shares of the Company (“Shares”); 
 WHEREAS, the Company wishes to carry out the Plan (as defined below), the terms of which are
hereby incorporated by reference and made a part of this Agreement; and 
 WHEREAS, the Committee (as defined below) appointed to administer
the Plan has determined that it would be to the advantage and best interest of the Company and its shareholders to grant the Non-Qualified Share Option(s) provided for herein to the Optionee as an incentive for increased efforts during his term of
employment with the Company or its Subsidiaries or Affiliates, and has advised the Company thereof and instructed the undersigned officers to issue said Options; 
 NOW, THEREFORE, in consideration of the mutual covenants herein contained and other good and valuable consideration, receipt of which is hereby acknowledged, the parties hereto do hereby agree as follows: 

ARTICLE I 
 DEFINITIONS 

Whenever the following terms are used in this Agreement, they shall have the meaning specified in the Plan or below unless the context clearly
indicates to the contrary. 
 Section 1.1 - Affiliate 
 “Affiliate” shall mean (a) with respect to any Person, any other Person directly or indirectly controlling, controlled by, or under common
control with, such Person, and (b) with respect to the Company, also any entity designated by the Board of Directors in which the Company or one of its Affiliates has an interest, and (c) Kohlberg Kravis Roberts & Co., L.P.
(“KKR”), Silver Lake Partners LLC (“SLP”) and any Affiliate of any partner of KKR or SLP. For purposes of this Agreement, “Person” means an individual, partnership, corporation, business trust, joint stock company,
trust, unincorporated association, joint venture, governmental authority or other entity of whatever nature, and “control” shall have the meaning given such term under Rule 405 of the Securities Act. 
  

 1 








 Section 1.2 - Board of Directors 
 “Board of Directors” shall mean the Board of Directors of the Company. 
 Section 1.3 - Cause 
 “Cause” shall mean (i) the Optionee’s willful refusal to perform in any material respect his lawful duties or responsibilities for the Company or its Subsidiaries or willful disregard in any material respect of any
financial or other budgetary limitations established in good faith by the Board of Directors or the board of directors of any Subsidiary; or (ii) the engaging by the Optionee in conduct that causes material and demonstrable injury, monetarily
or otherwise, to the Company or any of its Subsidiaries, including, but not limited to, misappropriation or conversion of assets of the Company or its Subsidiaries (other than non-material assets); or (iii) conviction of or entry of a plea of
nolo contendere to a non-vehicular felony. No act or failure to act by the Optionee shall be deemed “willful” if done, or omitted to be done, by him in good faith and with the reasonable belief that his action or omission was in the
best interest of the Company or its Subsidiaries or consistent with Company policies or the directive of the Board of Directors. 
 Section 1.4 - Code 
 “Code” shall mean the U.S. Internal Revenue Code of 1986, as amended. 
 Section 1.5 - Committee 
 “Committee” shall mean the Board of Directors or, if administration of the Plan is delegated by the Board of Directors to it, the Compensation Committee of the Board of Directors or any other committee of the Board of Directors
designated by the Board of Directors to administer the Plan. 
 Section 1.6 - Determination Date 
 “Determination Date” means the October 31 immediately following the Vesting Reference Date and each of the next four anniversaries
thereof. 
 Section 1.7 - “Good Reason” 
 “Good Reason” means i) a reduction in Optionee’s base salary (other than as part of a broad salary reduction program instituted because
the Company or the Subsidiary by which Optionee is employed is in financial distress), (ii) a substantial reduction in Optionee’s duties and responsibilities, (iii) the elimination or reduction of Optionee’s eligibility to
participate in the Company’s benefit programs that is inconsistent with the eligibility of similarly situated 

  

 2 








 
employees of the Company to participate therein, (iv) the Company informs the Optionee of its intention to transfer of the Optionee’s primary
workplace to a location that is more than 25 miles from the Optionee’s workplace at the time of the Vesting Reference Date, and (v) any serious chronic mental or physical illness of a member of the Optionee’s family that requires
Optionee to terminate his or her employment because of a substantial interference with his or her duties at the Company, provided that at the Company’s request Optionee shall provide the Company with a written physician’s statement
confirming the existence of such mental or physical illness. 
 Section 1.8 - Options 
 “Options” shall mean the Non-Qualified Share Options, which may include a Time Option and/or a Performance Option, to purchase Shares granted
under this Agreement. 
 Section 1.9 - Partnerships 
 “Partnerships” shall mean KKR and SLP. 
 Section 1.10 - Performance Option 
 “Performance Option” shall mean an Option with respect to which
the commencement of exercisability is governed by Section 3.1(b) hereof. 
 Section 1.11 - Permanent Disability

 The Optionee shall be deemed to have a “Permanent Disability” if the Optionee is unable to engage in the activities required by
his employment by reason of any medically determined physical or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than 12 months, as reasonably determined
by the Board of Directors in good faith and in its discretion. 
 Section 1.12 - Permitted Retirement 
 “Permitted Retirement” shall mean retirement at age 55 or over (or such other age as may be approved by the Board of Directors) after at least
fifteen years of continuous employment with the Company or one of its Subsidiaries or Affiliates. For the purposes of the preceding sentence, employment with a Predecessor shall be deemed to be employment with the Company. 
 Section 1.13 - Plan 
 “Plan” shall mean the Amended and Restated Equity Incentive Plan for Executive Employees of Avago Technologies Limited and Subsidiaries, as the same may be amended from time to time. 
  

 3 








 Section 1.14 - Predecessor 
 “Predecessor” shall mean the Hewlett-Packard Company, Agilent Technologies, Inc. or any of their Subsidiaries or Affiliates. 
 Section 1.15 - Pronouns 
 The masculine pronoun shall include the feminine and neuter, and the singular the plural, where the context so indicates. 
 Section 1.16 - Public Offering 
 “Public Offering” shall mean a public offering and sale of Shares by
the Company (or any successor) pursuant to an effective registration statement under the Securities Act and/or in compliance with equivalent securities laws of a jurisdiction outside of the U.S. (other than a registration statement on Form S-8, S-4,
Form F-4 or any other similar form). 
 Section 1.17 - Secretary 
 “Secretary” shall mean the Secretary of the Company. 
 Section 1.18 - Securities Act 
 “Securities Act” means the U.S. Securities Act
of 1933, as amended and the rules and regulations promulgated thereunder. 
 Section 1.19 - Shareholders Agreement

 “Shareholders Agreement” shall mean that certain Management Shareholders Agreement dated as of even date herewith by and between
the Company, the Optionee and other shareholders of the Company. 
 Section 1.20 - Subsidiary 
 “Subsidiary” with respect to any entity shall mean any corporation in an unbroken chain of corporations beginning with such entity if each of
the corporations, or group of commonly controlled corporations, other than the last corporation in the unbroken chain, then owns shares possessing 50% or more of the total combined voting power of all classes of equity in one of the other
corporations in such chain. 
 Section 1.21 - Time Option 
 “Time Option” shall mean an Option with respect to which the commencement of exercisability is governed by Section 3.1(a) hereof.

  

 4 








 Section 1.22 - Vesting Reference Date 
 “Vesting Reference Date” shall mean the date set forth on the signature page hereof. 
 ARTICLE II 
 GRANT OF OPTIONS 
 Section 2.1 - Grant of Options 
 For good and valuable consideration, on and as of the date hereof the Company irrevocably grants to the Optionee a Time Option and/or a Performance Option to purchase any part or all of an aggregate of the number of Shares set forth with
respect to each such Option on the signature page hereof upon the terms and conditions set forth in this Agreement. 
 Section 2.2 - Exercise Price 
 The per share exercise price of the Shares covered by the Option(s) shall be the
amount set forth on the signature page hereof. 
 Section 2.3 - Consideration to the Company 
 In consideration of the granting of these Option(s) by the Company, the Optionee agrees to render faithful and efficient services to the Company or one
of its Subsidiaries or Affiliates, with such duties and responsibilities as the Company shall from time to time prescribe. Nothing in this Agreement or in the Plan shall confer upon the Optionee any right to continue in the employ of the Company or
any of its Subsidiaries or Affiliates or shall interfere with or restrict in any way the rights of the Company and its Subsidiaries and Affiliates, which are hereby expressly reserved, to terminate the employment of the Optionee at any time for any
reason whatsoever, with or without Cause. 
 Section 2.4 - Adjustments in Options 
 Subject to Section 9 of the Plan, in the event that the outstanding Shares subject to an Option are, from time to time, changed into or exchanged
for cash or a different number or kind of shares of the Company or other securities of the Company by reason of a merger, consolidation, recapitalization, reclassification, stock split, stock dividend, combination of shares, or otherwise, the
Committee shall make an appropriate and equitable adjustment in the number and kind of shares or other consideration and the exercise price as to which such Option, or portions thereof then unexercised, shall be exercisable in order to prevent
dilution or enlargement of the benefits intended to be made available with respect to any Option. Any such adjustment made by the Committee shall be final and binding upon the Optionee, the Company and all other interested persons. 
  

 5 








 ARTICLE III 
 PERIOD OF EXERCISABILITY 
 Section 3.1 - Commencement of Exercisability

 (a) The Time Option shall become exercisable with respect to 20% of the Shares subject to such Time Option on each anniversary of the
Vesting Reference Date. Notwithstanding the foregoing, immediately prior to the consummation of a sale by the Company of the business unit that employs the Optionee, as determined by the Board in its sole discretion, to the extent not previously
vested, the Time Option shall become exercisable with respect to 20% of the Shares subject to such Time Option. 
 (b) On each anniversary of
Vesting Reference Date, the Performance Option shall become exercisable for an incremental percentage of the Shares subject to such Option equal to the product of 20% and the Achievement Ratio for the year ending on the immediately preceding
Determination Date, provided that on each Determination Date in no event shall the total percentage of Shares subject to the Performance Option that are exercisable be greater than the product of (i) 20% and (ii) the number of
Determination Dates (including such Determination Date) as have fallen from and after the Vesting Reference Date. For the avoidance of doubt, in the event that the Achievement Ratio is greater than 1.0 for any year, the Performance Option shall
become exercisable for an incremental percentage of the Shares subject to such Option that did not become exercisable in any preceding year (commencing with immediately preceding year) as a result of the Achievement Ratio for any such preceding year
being less than 1.0. 
 For purposes of this Section 3.1 the “Achievement Ratio” for each fiscal year shall be defined in
Exhibit A. 
 (c) Notwithstanding the foregoing, no Option or portion thereof shall become exercisable as to any additional Shares following
the termination of employment of the Optionee for any reason and any Option which is non-exercisable as of the Optionee’s termination of employment shall be immediately cancelled. 
 Section 3.2 - Expiration of Options 
 Except as otherwise provided in the Shareholders Agreement, the Options may not be exercised to any extent by anyone after the first to occur of the following events: 
 (a) In the case of an Option granted to an Employee, the tenth anniversary of the date hereof, and in the case of an Option granted to a service
provider other than an Employee, the fifth anniversary of the date hereof; 
 (b) The first anniversary of the date of the Optionee’s
termination of employment by reason of death or Permanent Disability; 
  

 6 








 (c) The first business day which is ninety calendar days after the termination of employment of the
Optionee for any reason other than for Cause, death or Permanent Disability; 
 (d) The date the Option is terminated pursuant to the
Shareholders Agreement; 
 (e) With respect to the Performance Option, the fifth anniversary of the Vesting Reference Date, to the extent
not previously vested; 
 (f) The opening of business on the date of an Optionee’s termination of employment by the Company for Cause;

 (g) If the Committee so determines pursuant to Section 9 of the Plan, the effective date of either the merger or consolidation of
the Company into another Person, or the exchange or acquisition by another Person of all or substantially all of the Company’s assets or 80% or more of its then outstanding voting shares, or the recapitalization, reclassification, liquidation
or dissolution of the Company. At least ten (10) days prior to the effective date of such merger, consolidation, exchange, acquisition, recapitalization, reclassification, liquidation or dissolution, the Committee shall give the Optionee notice
of such event if the Option has then neither been fully exercised nor become unexercisable under this Section 3.2. 
 ARTICLE IV

 EXERCISE OF OPTION 
 Section 4.1 - Person Eligible to Exercise 
 During the lifetime of the Optionee, only he may exercise an Option
or any portion thereof. After the death of the Optionee, any exercisable portion of an Option may, prior to the time when an Option becomes unexercisable under Section 3.2, be exercised by his personal representative or by any person empowered
to do so under the Optionee’s will or under the then applicable laws of descent and distribution. 
 Section 4.2 -
Partial Exercise 
 Any exercisable portion of an Option or the entire Option, if then wholly exercisable, may be exercised in whole
or in part at any time prior to the time when the Option or portion thereof becomes unexercisable under Section 3.2; provided, however, that any partial exercise shall be for whole Shares only. 
  

 7 








 Section 4.3 - Notice of Intent to Exercise 
 Until such time as the Option and the Shares to be acquired pursuant to the exercise of the Option are registered on a Form S-8 Registration Statement or
any successor form thereto (or are otherwise registered pursuant to the Securities Act), no less than ten (10) business days prior to the date the Optionee, or other person then entitled to exercise, intends to exercise the Options or any
portion thereof, the Optionee, or such other person, shall provide the Company notice in writing stating such intent. 
 Section 4.4
- Manner of Exercise 
 An Option, or any exercisable portion thereof, may be exercised solely by delivering to the Secretary or
his office all of the following prior to the time when the Option or such portion becomes unexercisable under Section 3.2: 
 (a)
Notice in writing signed by the Optionee or the other person then entitled to exercise the Option or portion thereof, stating that the Option or portion thereof is thereby exercised, such notice complying with all applicable rules established by the
Committee; 
 (b) Full payment (in cash, by check or by a combination thereof or by such other means as may be approved by the Committee in
its sole discretion) for the Shares with respect to which such Option or portion thereof is exercised; 
 (c) A bona fide written
representation and agreement, in a form satisfactory to the Committee, signed by the Optionee or other person then entitled to exercise such Option or portion thereof, stating (i) that the Shares are being acquired for his own account, for
investment and without any present intention of distributing or reselling said shares or any of them except as may be permitted under the Securities Act, and then applicable rules and regulations thereunder, (ii) that, if applicable (as
determined by the Company), the Optionee has received, read and understood the Company’s Rule 701 Disclosure Statement and (iii) that the Optionee or other person then entitled to exercise such Option or portion thereof will indemnify the
Company against and hold it free and harmless from any loss, damage, expense or liability resulting to the Company if any sale or distribution of the shares by such person is contrary to the representation and agreement referred to above; provided,
however, that the Committee may, in its absolute discretion, take whatever additional actions it deems appropriate to ensure the observance and performance of such representation and agreement and to effect compliance with the Securities Act, any
other U.S. federal or state securities laws or regulations and any other applicable laws or regulations; 
 (d) Full payment to the Company
(in cash, by check or by a combination thereof) of all amounts which, under federal, state or local law, it is required to withhold upon exercise of the Option; and 
 (e) In the event the Option or portion thereof shall be exercised pursuant to Section 4.1 by any person or persons other than the Optionee, appropriate proof of the right of such person or persons to exercise the
Option. 
  

 8 








 Notwithstanding the foregoing, upon Optionee’s termination of employment by the Company without Cause, by the
Optionee for Good Reason or as a Permitted Retirement, or by reason of death or Permanent Disability, in satisfaction of the payments required by Sections 4.4(b) and (d) above, Optionee may execute a cashless exercise, net of such payments,
pursuant to a formal program adopted by the Company in connection with the Plan provided that such a cashless exercise would not, as determined by the Committee in its sole discretion, (i) cause the Company or its Subsidiaries to breach any
debt agreement to which the Company or any of its Subsidiaries is a party, (ii) result in a violation under Section 409A of the Code or the regulations promulgated thereunder, (iii) be otherwise prohibited by the Code or the
regulations promulgated thereunder or (iv) result in negative accounting treatment under Generally Accepted Accounting Principles (“GAAP”). 
 Notwithstanding anything to the contrary in this Agreement or the Plan and in addition to any other restrictions provided in this Agreement or the Plan, as a condition to the delivery of any Shares pursuant to the exercise of the Option,
the Optionee agrees not to transfer the Shares prior to a Public Offering except upon such Optionee’s death or disability, pursuant to a donative transfer to a “family member” (within the meaning of Rule 701 of the Securities Act) or
to the Company. As a further condition to the delivery of any Shares pursuant to the exercise of the Option, the Optionee agrees that any ordinary shares of the Company transferred upon Optionee’s death or disability or donatively transferred
to a family member shall be restricted from subsequent transfer prior to a Public Offering except to the Company. 
 Without limiting the generality of this
Section 4.4, the Committee may require an opinion of counsel acceptable to it to the effect that any subsequent transfer of shares acquired on exercise of an Option does not violate the Securities Act, and may issue stop-transfer orders
covering such Shares. Share certificates evidencing Shares issued on exercise of this Option shall bear an appropriate legend referring to the provisions of subsection (c) above and the agreements herein. The written representation and
agreement referred to in subsection (c) above shall, however, not be required if the Shares to be issued pursuant to such exercise have been registered under the Securities Act, and such registration is then effective in respect of such Shares.

 Section 4.5 - Conditions to Issuance of Certificates 
 The Shares deliverable upon the exercise of an Option, or any portion thereof, may be either previously authorized but unissued Shares or, subject to
applicable laws, issued Shares which have then been reacquired by the Company. Such Shares shall be fully paid and nonassessable. The Company shall not be required to issue or deliver any certificate or certificates for Shares purchased upon the
exercise of an Option or portion thereof prior to fulfillment of all of the following conditions: 
 (a) The obtaining of approval or other
clearance from any governmental agency which the Committee shall, in its absolute discretion, determine to be necessary or advisable; and 
  

 9 








 (b) The lapse of such reasonable period of time following the exercise of the Option as the Committee
may from time to time establish for reasons of administrative convenience; provided, however, that no delay in the issuance of any certificate to be issued hereunder shall operate to prejudice or impair the Optionee’s rights to participate in a
corporate transaction providing for the disposition of Shares or to exercise his rights under the Shareholders Agreement. 
 Section 4.6 - Rights as Shareholder 
 The holder of an Option shall not be, nor have any of the rights or
privileges of, a shareholder of the Company in respect of any Shares purchasable upon the exercise of the Option or any portion thereof unless and until certificates representing such Shares shall have been issued by the Company to such holder.

 Section 4.7 - Covenant Regarding 83(b) Election 
 The Optionee hereby covenants and agrees that, unless otherwise determined by the Company, Optionee will make an election pursuant to Treasury Regulation
1.83-2 with respect to the Shares to be acquired upon each exercise of the Optionee’s Options by filing with the Internal Revenue Service such election substantially in the form attached hereto as Exhibit B; and the Optionee further covenants
and agrees that he will furnish the Company with copies of the forms of election the Optionee files within 30 days after each exercise of the Optionee’s Options and with evidence that each such election has been filed in a timely manner.

 ARTICLE V 
 MISCELLANEOUS

 Section 5.1 - Administration 
 The Committee shall have the power to interpret the Plan and this Agreement and to adopt such rules for the administration, interpretation and application of the Plan as are consistent therewith and to interpret or
revoke any such rules. All actions taken and all interpretations and determinations made by the Committee shall be final and binding upon the Optionee, the Company and all other interested persons. No member of the Committee shall be personally
liable for any action, determination or interpretation made in good faith with respect to the Plan or the Options. In its absolute discretion, the Board of Directors may at any time and from time to time exercise any and all rights and duties of the
Committee under the Plan and this Agreement. 
  

 10 








 Section 5.2 - Options Not Transferable 
 Neither the Options nor any interest or right therein or part thereof shall be liable for the debts, contracts or engagements of the Optionee or his
successors in interest or shall be subject to disposition by transfer, alienation, anticipation, pledge, encumbrance, assignment or any other means whether such disposition be voluntary or involuntary or by operation of law by judgment, levy,
attachment, garnishment or any other legal or equitable proceedings (including bankruptcy), and any attempted disposition thereof shall be null and void and of no effect; provided, however, that this Section 5.2 shall not prevent transfers by
will or by the applicable laws of descent and distribution. 
 Section 5.3 - Shares to Be Reserved 
 The Company shall at all times during the term of the Options reserve and keep available such number of Shares as will be sufficient to satisfy the
requirements of this Agreement. 
 Section 5.4 - Notices 
 Any notice to be given under the terms of this Agreement to the Company shall be addressed to the Company in care of its Secretary, and any notice to be
given to the Optionee shall be addressed to him at his most recent address as reflected in the Company’s records. By a notice given pursuant to this Section 5.4, either party may hereafter designate a different address for notices to be
given to him or it. Any notice which is required to be given to the Optionee shall, if the Optionee is then deceased, be given to the Optionee’s personal representative if such representative has previously informed the Company of his status
and address by written notice under this Section 5.4. Any notice shall have been deemed duly given when enclosed in a properly sealed envelope or wrapper addressed as aforesaid, and delivered by hand (whether by courier or otherwise) or sent by
registered or certified mail, return receipt requested (with postage prepaid). 
 Section 5.5 - Titles 
 Titles are provided herein for convenience only and are not to serve as a basis for interpretation or construction of this Agreement. 
 Section 5.6 - Applicability of Plan and Shareholders Agreement 
 The Options and the Shares issued to the Optionee upon exercise of the Options shall be subject to all of the terms and provisions of the Plan and the
Shareholders Agreement, to the extent applicable to the Options and such Shares. In the event of any conflict between this Agreement and the Plan, the terms of the Plan shall control. In the event of any conflict between this Agreement or the Plan
and the Shareholders Agreement, the terms of the Shareholders Agreement shall control. 
  

 11 








 Section 5.7 - Amendment 
 This Agreement may be amended only by a writing executed by the parties hereto, which specifically states that it is amending this Agreement. 

Section 5.8 - Jurisdiction 
 Any suit, action or proceeding against the Optionee with respect to this Agreement, or any judgment entered by any court in respect of any thereof, may be brought in any court of competent jurisdiction in the State of California, and the
Optionee hereby submits to the exclusive jurisdiction of such courts for the purpose of any such suit, action, proceeding or judgment. The Optionee hereby irrevocably waives any objections which he may now or hereafter have to the laying of the
venue of any suit, action or proceeding arising out of or relating to this Agreement brought in any court of competent jurisdiction in the State of California, and hereby further irrevocably waives any claim that any such suit, action or proceeding
brought in any such court has been brought in any inconvenient forum. No suit, action or proceeding against the Company with respect to this Agreement may be brought in any court, domestic or foreign, or before any similar domestic or foreign
authority other than in a court of competent jurisdiction in the State of California, and the Optionee hereby irrevocably waives any right which he may otherwise have had to bring such an action in any other court, domestic or foreign, or before any
similar domestic or foreign authority. The Company hereby submits to the jurisdiction of such courts for the purpose of any such suit, action or proceeding. 
 Section 5.9 - Employee Representation and Acknowledgement 
 By signing this Agreement,
the Optionee hereby represents, acknowledges and confirms that the Optionee has read this Agreement carefully and completely and understands each of the terms hereof. 
 (Signature Page Follows) 
  

 12 








 IN WITNESS WHEREOF, this Non-Qualified Share Option Agreement has been executed and delivered by the
parties hereto as of the date first written above. 
  

									
	«NAME», OPTIONEE	 		 	COMPANY
					
	 	 	 	 		 	By	 	 
	 Signature
	 		 	Its	 	 

  

	
	  
	  
	Optionee’s Address
	
	  
	Optionee’s Tax Identification Number
	
	  
	Optionee’s Passport Number

 Aggregate number of Shares subject to Time Option: «Time_Options» 
 Aggregate number of Shares subject to Performance Option: «Performance_Options» 
 Per share exercise price: «Exercise_Price» 
 Grant Date: «Grant_Date» 
 Vesting Reference Date: «Vesting_Reference_Date» 
  

 13 








 EXHIBIT A 
 Section 3.1 Definitions. 
 (i) The “Achievement Ratio” for a fiscal year shall
be determined on the basis of the value of the Performance Metric for such year as compared to the Performance Targets described below. For values of the Performance Metric below the amount indicated for the Minimum Performance Standard, the
Achievement Ratio shall be zero. If the value of the Performance Metric equals the amount indicated for the Management Plan, the Achievement Ratio shall equal 100%. For all other values of the Performance Metric, the Achievement Ratio shall be
determined by linear interpolation using the Achievement Ratios for the Minimum Performance Standard and the Management Plan. 
 (ii)
“Performance Metric” means the “Operating Profit” of the Company. For this purpose, “Operating Profit” means the Company’s actual earnings before interest and taxes for a year, determined based on the
Company’s audited financials. Operating Profit shall not be reduced by costs of the acquisition of the Company by KKR or SLP or related items or management and transaction fees payable to KKR, SLP or their Affiliates. Operating Profit shall be
calculated without giving effect to purchase accounting arising from the acquisition of SPG from Agilent Technologies, Inc. The Committee shall, fairly and appropriately, adjust the calculation of Operating Profit to reflect, to the extent not
contemplated in the management plan, the following: acquisitions, divestitures, the one time transition costs related to the transitioning to stand alone systems and infrastructure (including utilizing the assumed cost structure for the first fiscal
period on a proforma basis instead of the actual costs incurred by the company for such items), non-cash equity compensation expenses, any changes in GAAP promulgated by accounting standard setters that, in each case, the Committee in good faith
determines require adjustment of Operating Profit. The Committee’s determination of such adjustment shall be based on the Company’s accounting as set forth in its books and records and on the management plan of the Company pursuant to
which the Performance Targets were originally established. 
 (iii) The “Performance Targets” for each fiscal year shall be the
Management Plan and Minimum Performance Standard amounts as set forth below. If the Company makes an acquisition in any year, the Performance Targets for such year and subsequent years will be adjusted, fairly and appropriately, by the amount of
EBIT in the management plan for the target presented to the Committee at the time the acquisition is approved by the Committee. Performance Targets will also be fairly and appropriately adjusted by the Committee, in consultation with management, to
the extent not contemplated in the management plan for the following: any divestitures, major capital investment programs, any change required by GAAP relating to share-based compensation or other changes in GAAP promulgated by accounting standard
setters. In the event that any of the foregoing action is taken, such adjustment shall be only the amount deemed reasonably necessary by the Committee, in the exercise of its good faith judgment, after consultation of the Company’s accountants,
to accurately reflect the direct and measurable effect such event has on such Performance Targets. The intent of such adjustments is to keep the probability of achieving the Performance Targets the same as if the event triggering such adjustment had
not occurred. The Committee’s determination of such necessary 


  


 A-1 








 
adjustment shall be made within 60 days following the completion or closing of such event, and shall be based on the Company’s accounting as set forth
in its books and records and on the Company’s financial plan pursuant to which the Performance Targets were originally established. 
 Performance Targets: Values of Performance Metric for Management Plan and Minimum Performance Standard (in millions of U.S. dollars): 
  

																
	 	  	20    	  	20    	  	20    	  	20    	  	20    
	 Management Plan
	  	$	            	  	$	            	  	$	            	  	$	            	  	$	            
	 Minimum Performance Standard
	  	$	            	  	$	            	  	$	            	  	$	            	  	$	            


  


 A-2 








 EXHIBIT B 
 ELECTION UNDER INTERNAL REVENUE CODE SECTION 83(B) 
 The undersigned taxpayer hereby elects, pursuant
to Section 83(b) of the U.S. Internal Revenue Code of 1986, as amended, to include in taxpayer’s gross income for the current taxable year the amount of any compensation taxable to taxpayer in connection with taxpayer’s receipt of
ordinary shares (the “Shares”) of Avago Technologies Limited, a corporation organized under the laws of Singapore (the “Company”). 
  

	1.	The name, address and taxpayer identification number of the undersigned taxpayer are: 

  


			
	«Name»	  	
	 	  	
	 	  	
		
	SSN: __________________________________________	  	
	
	The name, address and taxpayer identification number of the Taxpayer’s spouse are (complete if applicable):
	 	  	
	 	  	
	 	  	
		
	SSN: __________________________________________	  	

 Description of the property with respect to which the election is being made: 
                     
(            ) ordinary shares of the Company. 
 The date on which the property was
transferred was                 . The taxable year to which this election relates is calendar year
            . 
 Nature of restrictions to which the property is subject: 
 The Shares are subject to repurchase at the least of their original purchase price, their original purchase price less any decrease in the book value of
the Company, or their fair market value if the Company terminates the employment of the purchaser for cause prior to the fifth anniversary of purchase. The Shares are subject to repurchase at a percentage (less than 100%) of their book value in the
event of the purchaser’s voluntary termination of employment other than for good reason prior to the fifth anniversary of purchase. 

  


 B-1 








 The fair market value at the time of transfer (determined without regard to any lapse restrictions, as defined in
Treasury Regulation Section 1.83-3(a)) of the Shares was $             per Share. 
 The amount paid by the taxpayer for Shares was                      per share. 
 A copy of this statement has been furnished to the Company. 
  

									
	Dated:                 ,         	 	Taxpayer Signature	 	 

 The undersigned spouse of Taxpayer joins in this election. (Complete if applicable). 
  

									
	Dated:                 ,         	 	Spouse’s Signature	 	 

  

	
	Signature(s) Notarized by:
	
	  
	
	  


  


 B-2 








 EXHIBIT C 
 SAMPLE COVER LETTER TO INTERNAL REVENUE SERVICE 
                     ,              
 VIA CERTIFIED MAIL 
 RETURN RECEIPT
REQUESTED 
 Internal Revenue Service 
 [Address where
taxpayer files returns] 
  

	Re:	Election under Section 83(b) of the U.S. Internal Revenue Code of 1986 


	    	Taxpayer: «Name» 


	    	Taxpayer’s Social Security Number:
                                         
                                    


	    	Taxpayer’s Spouse:
                                         
                                         
                       


	    	Taxpayer’s Spouse’s Social Security Number:
                                         
                    

 Ladies and Gentlemen:

 Enclosed please find an original and one copy of an Election under Section 83(b) of the U.S. Internal Revenue Code of 1986, as
amended, being made by the taxpayer referenced above. Please acknowledge receipt of the enclosed materials by stamping the enclosed copy of the Election and returning it to me in the self-addressed stamped envelope provided herewith. 
  

	
	Very truly yours,
	
	  
	«Name»


 Enclosures 
  

	cc:	Avago Technologies Limited 


  


 C-1