Document:

exv4w19

 

Exhibit 4.19

EQUITY INCENTIVE PLAN

FOR SENIOR MANAGEMENT EMPLOYEES OF

AVAGO TECHNOLOGIES LIMITED AND SUBSIDIARIES

(AMENDED AND RESTATED EFFECTIVE AS OF FEBRUARY 25, 2008)

1. Purpose of Plan

     The Equity Incentive Plan for Senior Management Employees of Avago Technologies Limited and
Subsidiaries, as amended and restated herein (the “Plan”) is designed:

          (a) to promote the long term financial interests and growth of Avago
Technologies Limited, a company organized under the laws of Singapore (the
“Company”), and its Subsidiaries by attracting and retaining management, directors
and other personnel with the training, experience and ability to enable them to make
a substantial contribution to the success of the Company’s business;

          (b) to motivate participants by means of growth-related incentives to achieve
long range goals; and

          (c) to further the identity of interests of participants with those of the
shareholders of the Company through opportunities for share or share-based ownership
in the Company.

2. Definitions

     As used in the Plan, the following words shall have the following meanings:

          (a) “Affiliate” shall mean (i) with respect to any Person, any other Person
directly or indirectly controlling, controlled by, or under common control with,
such Person, and (ii) with respect to the Company, also any entity designated by the
Board of Directors of the Company in which the Company or one of its Affiliates has
an interest, (iii) with respect to Kohlberg Kravis Roberts & Co., L.P. (“KKR”), any
Affiliate of any partner of KKR and (iv) with respect to Silver Lake Partners LLC
(“SLP”), any Affiliate of any partner of SLP. For purposes of this Plan, “Person”
means an individual, partnership, corporation, limited liability company, 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.

          (b) “Asset Purchase Agreement” means that Asset Purchase Agreement dated as of
August 14, 2005 between Agilent Technologies, Inc. and Argos Acquisition Pte. Ltd.

          (c) “Board of Directors” means the Board of Directors of the Company.

          (d) “Book Value Per Share” means, as of any date of determination, an amount
equal to the result of (x) the sum of (A) the shareholders’ equity of the

 

 

Company, excluding amounts attributable to shares of the Company’s capital
stock other than its Shares as of the relevant date; and excluding (i) the effect of
any extraordinary, non-recurring, certain non-operating, or unusual items and (ii)
any decrease after the Grant Date in a valuation allowance or other reserve related
to deferred tax assets recognized by the Company, if and to the extent determined in
the sole discretion of the Board of Directors, all as determined in accordance with
generally accepted accounting principles applied on a basis consistent with any
prior periods, and (B) the aggregate exercise prices of all outstanding stock
options and other dilutive rights to acquire Shares of the Company and the aggregate
dilutive conversion prices of all securities convertible into Shares, divided by (y)
the sum of the number of Shares then outstanding and the number of Shares issuable
upon the exercise of all outstanding stock options and other dilutive rights to
acquire Shares and the conversion of all dilutive securities convertible into
Shares. For purposes of this Plan, Book Value Per Share as of the closing of the
transactions contemplated by the Asset Purchase Agreement shall be based on the
shareholder’s equity of the Company immediately after giving effect to the
transactions contemplated by the Asset Purchase Agreement and the incurrence of
related transaction fees and expenses related thereto.

     (e) “Cause” shall mean (i) the Participant’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 Participant 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) the Participant’s conviction of or entry of a
plea of nolo contendere to a felony. No act or failure to act by the Participant
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.

     (f) “Change of Control” means (i) a sale of all or substantially all of the
assets of the Company and its Subsidiaries, taken as a whole, to a Person who is not
an Affiliate of the Company, LU, KKR or SLP, (ii) a sale by LU, KKR and SLP or any
of their respective Affiliates resulting in more than 50% of the voting stock of the
Company being held by a Person or related group of Persons that does not include LU,
KKR or SLP or any of their respective Affiliates or (iii) a merger or consolidation
of the Company into another Person which is not an Affiliate of the Company, LU, KKR
or SLP, if and only if as a result of such merger or consolidation LU, KKR and SLP
lose the ability to elect a majority of the Board of Directors (or the board of
directors of resulting entity).

     (g) “Committee” means the Board of Directors or if administration of the Plan
is delegated by the Board of Directors to it, the Compensation Committee

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of the Board of Directors or such other committee of the Board of Directors
designated by the Board of Directors to administer the Plan.

     (h) “Consultant” means any consultant or adviser if: (i) the consultant or adviser
renders bona fide services to the Company or Subsidiary of the Company; (ii) the services
rendered by the consultant or adviser are not in connection with the offer or sale of
securities in a capital-raising transaction and do not directly or indirectly promote or
maintain a market for the Company’s securities; and (iii) the consultant or adviser is a
natural person who has contracted directly with the Company or Subsidiary of the Company to
render such services.

     (i) “Employee” means a person, including an officer, in the regular full-time
employment of the Company or one of its Subsidiaries.

     (j) “Estate” means a Person’s executors, administrators, testamentary trustees,
legatees or beneficiaries.

     (k) “Exchange Act” means the U.S. Securities Exchange Act of 1934, as amended.

     (l) “Fair Market Value” means such value of a Share as reported for stock
exchange transactions and/or determined in accordance with any applicable
resolutions or regulations of the Committee in effect at the relevant time.

     (m) “Good Reason” shall mean (i) for Employees, a reduction in the
Participant’s base salary (other than as part of a broad salary reduction program
instituted because the Company or the Subsidiary by which the Participant is
employed is in financial distress), (ii) a substantial reduction in the
Participant’s duties and responsibilities, (iii) for Employees, the elimination or
reduction of the Participant’s eligibility to participate in the Company’s benefit
programs that is inconsistent with the eligibility of similarly situated employees
of the Company to participate therein, (iv) for Employees, the Company informs the
Participant of its intention to transfer the Participant’s primary workplace to a
location that is more than 25 miles from the Participant’s workplace on the Grant
Date and (v) any serious chronic mental or physical illness of a member of the
Participant’s family that requires the Participant to terminate his or her
employment or service because of substantial interference with his or her duties at
the Company; provided that at the Company’s request the Participant shall provide
the Company with a written physician’s statement confirming the existence of such
mental or physical illness.

     (n) “Grant” means a Share Option award or a Share Purchase Right award made to
a Participant pursuant to the Plan.

     (o) “Grant Agreement” means an agreement between the Company and a Participant
that sets forth the terms, conditions and limitations applicable to a Grant.

     (p) “Grant Date” means the date that the Grant to a Participant is approved by
the Committee.

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     (q) “LU” means Bali Investments S.a.r.l., a Luxembourg company.

     (r) “Non-Employee Director” means a member of the Board of Directors who is not
an Employee.

     (s) “Option Excess Price” is the excess, if any, of the applicable repurchase
price of the Shares determined in accordance with Section 8(a) or 8(b) hereof,
depending on which repurchase price is being used to repurchase Shares, over the
exercise prices applicable to the Shares subject to the Share Option multiplied by
the number of Shares, which as of the date of determination, could be purchased by
Participant upon exercise of Participant’s outstanding Share Options (the
“Exercisable Option Shares”).

     (t) “Participant” means an Employee, Consultant or Non-Employee Director to
whom one or more Grants have been made and such Grants have not all been forfeited
or terminated under the Plan.

     (u) “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).

     (v) “Repurchase Calculation Date” means the last day of the month preceding the
later of (i) the month in which the Repurchase Event occurs or (B) the month in
which the Repurchase Eligibility Date (as hereinafter defined) occurs; provided,
however that in the event of a Repurchase Event arising under Section 8(a) as a
result of death or disability, the Repurchase Calculation Date shall be the date of
the repurchase by the Company.

     (w) “Repurchase Event” means the event giving rise to the repurchase of Shares
under Section 8, including death, permanent disability, termination of employment or
service or other event, as the case may be, and not the giving of any notice
required pursuant to Section 8(c).

     (x) “Securities Act” means the U.S. Securities Act of 1933, as amended and the
rules and regulations promulgated thereunder.

     (y) “Share” means an ordinary share in the capital of the Company.

     (z) “Share Option” means an option to purchase Shares granted pursuant to
Section 5.

     (aa) “Share Purchase Right” means a right to purchase Shares pursuant to
Section 6 hereof.

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          (bb) “Subsidiary” means any Person other than the Company in an unbroken chain
of entities beginning with the Company if each of the entities, or group of commonly
controlled entities, other than the last entity in the unbroken chain, then owns shares (or other equity interest) possessing 50% or more of the total combined
voting power of all classes of equity in one of the other entities in such chain.

          (cc) “Transfer” means the offer, transfer, sale, assignment, pledge,
hypothecation or other disposition, whether directly or indirectly and whether
voluntary or involuntary, by the Participant of any Shares issued under a Share
Option.

          (dd) “Trust” means a trust, custodianship or other similar entity the
beneficiaries or holders of which may include only the Participant, his spouse or
his lineal descendants (which term shall include biological as well as adoptive
descendants).

3. Administration of Plan

          (a) The Plan shall be administered by the Board of Directors or the Committee.
Unless otherwise determined by the Board of Directors, the members of the Committee
shall consist solely of individuals who are both “non-employee directors” as defined
by Rule 16b-3 promulgated under the Exchange Act and “outside directors” for
purposes of Section 162(m) of the U.S. Internal Revenue Code of 1986, as amended
(the “Code”), to the extent that the Company and its Employees are subject to
Section 16 of the Exchange Act or Section 162(m) of the Code. The Committee may
adopt its own rules of procedure, and the action of a majority of the Committee,
taken at a meeting or taken without a meeting by a writing signed by such majority,
shall constitute action by the Committee. The Committee shall have the power,
authority and the discretion to administer, construe and interpret the Plan and
Grant Agreements, to make rules for carrying out the Plan and to make changes in
such rules. Any such interpretations, rules, and administration shall be made and
done in good faith and consistent with the basic purposes of the Plan.

          (b) The Committee may delegate to the Chief Executive Officer and to other
senior officers of the Company its duties under the Plan subject to such conditions
and limitations as the Committee shall prescribe except that only the Committee may
designate and make Grants to Participants who are subject to Section 16 of the
Exchange Act or Section 162(m) of the Code and be subject to all applicable laws.

          (c) The Committee may employ attorneys, consultants, accountants, appraisers,
brokers or other persons. The Committee, the Company, and the officers and
directors of the Company shall be entitled to rely upon the advice, opinions or
valuations of any such persons. Subject to the terms and conditions of this Plan
and any applicable Grant Agreement, all actions taken and all interpretations and
determinations made by the Committee in good faith shall be

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final and binding upon all Participants, 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
Grants, and all members of the Committee shall be fully protected by the Company
with respect to any such action, determination or interpretation.

4. Eligibility

     The Committee may from time to time make Grants under the Plan to such Employees, Consultants
or Non-Employee Directors, and in such form and having such terms, conditions and limitations as
the Committee may determine. Grants may be granted singly, in combination or in tandem. The
terms, conditions and limitations of each Grant under the Plan shall be set forth in a Grant
Agreement, in a form approved by the Committee, consistent, however, with the terms of the Plan;
provided, however, such Grant Agreement shall contain provisions dealing with the treatment of
Grants in the event of the termination, death or disability of the Participant, and may also
include provisions concerning the treatment of Grants in the event of a change of control of the
Company.

5. Option Grants

     From time to time, the Committee will grant options to purchase Shares which are not
“incentive stock options,” within the meaning of Section 422 of the Code. At the time of a
Grant of Share Options, the Committee shall determine, and shall have specified in the
Grant Agreement or other Plan rules, the option exercise period, the option exercise price,
and such other conditions or restrictions on the grant or exercise of the Share Options as
the Committee deems appropriate. In addition to other restrictions contained in the Plan
and Grant Agreement, Share Options granted under this Section 5 (i) may not be exercised
more than 10 years after the Grant Date (5 years in the case of Grants to non-Employees),
(ii) unless granted in substitution or exchange for other options in connection with a
corporate transaction, may not have an option exercise price less than 100% of the Fair
Market Value of a Share on the Grant Date, (iii) except with regard to Share Options
granted to an officer (within the meaning of Section 16 of the Exchange Act), Non-Employee
Director or Consultant, must not become vested and exercisable at a rate of less than
twenty percent (20%) per year over five (5) years from the Grant Date, subject to
reasonable conditions, such as continued employment or service with the Company or its
Subsidiaries and (iv) must remain exercisable for thirty (30) days following the
Participant’s termination of employment or service with the Company for other than Cause
and six (6) months following the Participant’s termination of employment or service because
of death or disability or such longer period of time provided in the Participant’s Grant
Agreement. Payment of the option exercise price shall be made in cash or, with the consent
of the Committee, in Shares (including Shares acquired by contemporaneous exercise of other
Share Options) or a combination thereof, in accordance with the terms of the Plan, the
Grant Agreement and any applicable guidelines of the Committee in effect at the time;
provided, however, that the option exercise price may also be paid, upon the termination by
the Company of the Participant’s employment or service without Cause, the Participant’s
resignation for Good Reason, or termination by reason of the Participant’s death or
disability, pursuant to a formal cashless exercise program adopted by the Company in
connection with the

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Plan, provided that such cashless exercise would not, as determined by the Committee
in its sole discretion, (i) cause the Company or its Subsidiaries to breach any loan,
guarantee or other agreement under which the Company or any Subsidiary of the Company has
borrowed money, (ii) result in a violation or in adverse consequences 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”).

     6. Share Purchase Rights

          Share Purchase Rights may be granted either alone, in addition to, or in tandem with Share
Options granted under the Plan. After the Committee determines that it will offer Share Purchase
Rights under the Plan, it shall advise the offeree in writing of the terms, conditions and
restrictions to which the offer is subject, which may include the number of Shares that such person
shall be entitled to purchase, the price to be paid, and the time within which such person must
accept such offer; provided, however, that the purchase price of such Shares shall not be less than
the purchase price required under applicable law. The offer shall be accepted by execution of a
Grant Agreement in the form determined by the Committee.

     7. Limitations and Conditions

     (a) The aggregate number of Shares available for Grants under this Plan and the
Equity Incentive Plan for Executive Employees of Avago Technologies Limited and
Subsidiaries (the “Executive Plan”) shall be 30,000,000 Shares. The issuance of a
Share under the Executive Plan shall reduce the number of Shares available for
Grants under the Plan, and vice versa. Unless restricted by applicable law, Shares
related to Grants that are forfeited, terminated, canceled or expire unexercised,
shall immediately become available for Grants.

     (b) The term of a Grant shall not exceed 10 years (5 years in the case of
Grants to non-Employees, including, without limitation, Consultants and Non-Employee
Directors). No Grants shall be made under the Plan beyond ten years after the
effective date of the Plan, but the terms of Grants made on or before the expiration
thereof may extend beyond such expiration. At the time a Grant is made or amended
or the terms or conditions of a Grant are changed, the Committee may provide for
limitations or conditions on such Grant.

     (c) Nothing contained herein shall affect the right of the Company or any
Subsidiary to terminate any Participant’s employment or service at any time or for
any reason.

     (d) Except as otherwise prescribed by the Committee, the amounts of the Grants
for any employee of a Subsidiary, along with interest, dividends, and other expenses
accrued on deferred Grants shall be charged to the Participant’s employer during the
period for which the Grant is made. If the Participant is employed by more than one
Subsidiary or by a combination of the Company and a Subsidiary during the period for
which the Grant is made, the Participant’s

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Grant and related expenses will be allocated between the companies employing
the Participant in a manner prescribed by the Committee.

     (e) Other than as specifically provided by will or by the applicable laws of
descent and distribution or the terms of any applicable trust, no benefit under the
Plan shall be subject in any manner to anticipation, alienation, sale, transfer,
assignment, pledge, encumbrance, or charge, and any attempt to do so shall be void.
No such benefit shall, prior to receipt thereof by the Participant, be in any manner
liable for or subject to the debts, contracts, liabilities, engagements, or torts of
the Participant.

     (f) A Participant shall not be, and shall not have any of the rights or
privileges of, a shareholder of the Company in respect of any Shares purchasable or
otherwise acquired in connection with any Grant unless and until certificates
representing any such Shares have been issued by the Company to such Participants;
provided however that no delay in the issuance of certificates due to be issued
hereunder representing any such Shares shall operate to impair or prejudice any
Participant’s rights to participate in a corporate transaction providing for the
disposition of such Shares. Once certificates representing any such Shares have
been issued by the Company to such Participants, such Participants shall have all of
the rights and privileges of shareholders of the Company.

     (g) No election as to benefits or exercise of Share Options or other rights may
be made during a Participant’s lifetime by anyone other than the Participant except
by a legal representative appointed for or by the Participant.

     (h) Absent express provisions to the contrary, no Grant under this Plan shall
be deemed “compensation” for purposes of computing benefits or contributions under
any retirement plan of the Company or its Subsidiaries and shall not affect any
benefits under any other benefit plan of any kind or subsequently in effect under
which the availability or amount of benefits is related to level of compensation.
This Plan is not a “Pension Plan” or “Welfare Plan” under the Employee Retirement
Income Security Act of 1974, as amended.

     (i) Unless the Committee determines otherwise, no benefit or promise under the
Plan shall be secured by any specific assets of the Company or any of its
Subsidiaries, nor shall any assets of the Company or any of its Subsidiaries be
designated as attributable or allocated to the satisfaction of the Company’s
obligations under the Plan.

     8. Put and Call Rights

     (a) The Participant’s Resale of Shares to the Company Upon the
Participant’s Death or Disability.

     (i) In the event that on or before the fifth anniversary of the Grant
Date, (A) the Participant is still in the employ of, or performing

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services as a Consultant or Non-Employee Director for, the Company or
any Subsidiary of the Company and (B) the Participant either dies or becomes
permanently disabled, then the Participant, the Participant’s Estate or the
Participant’s Trust, as the case may be, shall have the right for twelve
months following the date of death or permanent disability, to (X) sell to
the Company, and the Company shall be required to purchase, on one occasion,
all or any portion of the Shares then held by the Participant, the
Participant’s Estate and/or the Participant’s Trust, as the case may be, at
a price per share equal to the Fair Market Value on the Repurchase
Calculation Date; provided that such Shares have been held by the
Participant, the Participant’s Estate or the Participant’s Trust for not
less than six months and one day as of the date of their sale to the
Company, and (Y) require the Company to issue the Participant, the
Participant’s Estate or the Participant’s Trust, as the case may be, that
number of Shares having an aggregate Fair Market Value equal to the Option
Excess Price, determined using the Fair Market Value on the Repurchase
Calculation Date, with respect to the termination of all or any portion of
the outstanding exercisable Share Options then held by the Participant,
which Shares the Participant, the Participant’s Estate and/or the
Participant’s Trust may then require the Company to purchase in accordance
with clause (X) above (including with respect to the six month and one day
timing restriction contained therein). The Participant, the Participant’s
Estate and/or the Participant’s Trust, as the case may be, shall notify the
Company of its intention to sell Shares and/or terminate Share Options
pursuant to the preceding sentence by sending to the Company a Redemption
Notice in accordance with Section 8(c) hereof. For purposes of this Plan,
the Participant shall be deemed to have a “permanent disability” if the
Participant is unable to engage in any substantial gainful activity by
reason of any medically determinable physical or mental impairment that can
be expected to result in death or to last for a continuous period of not
less than 12 months.

     (ii) Notwithstanding anything in Section 8(a)(i) to the contrary and
subject to Section 8(d), if there exists and is continuing a default or an
event of default on the part of the Company or any Subsidiary of the Company
under any loan, guarantee or other agreement under which the Company or any
Subsidiary of the Company has borrowed money or such repurchase would result
in a default or an event of default on the part of the Company or any
Subsidiary of the Company under any such agreement or if a repurchase would
not be permitted under any applicable law or regulation (each such
occurrence being an “Event”), the Company shall not be obligated to
repurchase any of the Shares from the Participant, the Participant’s Estate,
or the Participant’s Trust, as the case may be, until the first business day
which is 15 calendar days after all of the foregoing Events have ceased to
exist (the “Repurchase Eligibility Date”); provided, however, that (i) the
number of Shares subject to repurchase under this Section 8(a)(ii) shall be
that number of Shares, and (ii) the number of Exercisable Option Shares for
purposes of calculating the Option Excess

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Price payable under this Section 8(a) shall be the number of
Exercisable Option Shares held by the Participant, the Participant’s Estate
or the Participant’s Trust, as the case may be, at the time of delivery of a
Redemption Notice in accordance with Section 8(c) hereof. All Options
exercisable as of the date of a Redemption Notice shall continue to be
exercisable until the repurchase pursuant to such Redemption Notice.

     (b) The Company’s Purchase of Shares and Share Options from the Participant
Upon the Participant’s Termination of Employment or Service.

     (i) Without Cause or for Good Reason. In the event that on or
before the fifth anniversary of the Grant Date, the Company (and/or, if
applicable, its Subsidiaries) terminates without Cause the Participant’s
service with the Company (and/or, if applicable, its Subsidiaries) as an
Employee, Consultant or Non-Employee Director, or the Participant resigns
with Good Reason from the service as an Employee, Consultant or Non-Employee
Director of the Company (and/or, if applicable, its Subsidiaries), then the
Company shall have the right to purchase from the Participant, the
Participant’s Estate or Participant’s Trust, and the Participant, the
Participant’s Estate or the Participant’s Trust, as the case may be, shall
be required to sell to the Company, on one occasion, all or any portion of
the Shares then held by the Participant, the Participant’s Estate or the
Participant’s Trust, as the case may be, at a price per share equal to the
Fair Market Value on the Repurchase Calculation Date.

     (ii) Without Good Reason. In the event that on or before the
fifth anniversary of the Grant Date, the Participant resigns from the
Company (and/or, if applicable, its Subsidiaries) as an Employee or a
Consultant without Good Reason, then the Company shall have the right to
purchase from the Participant, the Participant’s Estate or Participant’s
Trust, and the Participant, the Participant’s Estate or the Participant’s
Trust, as the case may be, shall be required to sell to the Company, on one
occasion, all or any portion of the Shares then held by the Participant, the
Participant’s Estate or the Participant’s Trust, as the case may be, at a
price per Share equal to, (A) if the Book Value Per Share on the Repurchase
Calculation Date is less than the Book Value Per Share on the Grant Date
(such difference being the “Book Value Decrease”), the lesser of (x) the
Fair Market Value, and (y) the exercise price applicable to the Shares, or
(B) if the Book Value Per Share on the Repurchase Calculation Date is
greater than the Book Value Per Share on the Grant Date, the lesser of (A)
the Fair Market Value, and (B) the exercise price applicable to the Shares,
plus (x) the Percentage (as defined below) multiplied by (y) the amount, if
any, by which the Book Value Per Share as of the Repurchase Calculation Date
exceeds the Book Value Per Share on the Grant Date.

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The “Percentage” shall be determined as follows:

	 	 	 	 	 
	Repurchase Calculation Date	 	Percentage
	Prior to the first anniversary of the Grant Date
	 	 	- 0 -	 
	On or after the first anniversary of the Grant Date and prior
to the second anniversary of the Grant Date
	 	 	20	%
	On or after the second anniversary of the Grant Date and prior
to the third anniversary of the Grant Date
	 	 	40	%
	On or after the third anniversary of the Grant Date and prior
to the fourth anniversary of the Grant Date
	 	 	60	%
	On or after the fourth anniversary of the Grant Date and prior
to the fifth anniversary of the Grant Date
	 	 	80	%
	On or after the fifth anniversary of the Grant Date
	 	 	100	%

     (iii) For Cause. In the event that on or before the fifth
anniversary of the Grant Date, the Company (and/or, if applicable, its
Subsidiaries) terminates for Cause the Participant’s service with the
Company (and/or, if applicable, its Subsidiaries) as an Employee or
Consultant, then the Company shall have the right to purchase from the
Participant, the Participant’s Estate or Participant’s Trust, and the
Participant, the Participant’s Estate or the Participant’s Trust, as the
case may be, shall be required to sell to the Company, on one occasion, all
or any portion of the Shares then held by the Participant, the Participant’s
Estate or the Participant’s Trust, as the case may be, at a price per Share
equal to the least of (A) the exercise price applicable to the Shares, (B)
the Fair Market Value on the Repurchase Calculation Date or (C) the exercise
price applicable to the Shares less the amount of any Book Value Decrease.

     (iv) Share Options. In the event that (A) the Participant, the
Participant’s Estate and/or the Participant’s Trust holds Shares and Share
Options and the Company exercises its right to repurchase Shares pursuant to
this Section 8(b) or (B) the Participant, the Participant’s Estate and/or
the Participant’s Trust holds only Share Options and the Company elects to
cash out such Share Options upon the termination of the Participant’s
employment or service as an Employee or Consultant, the Company shall pay
the Participant, the Participant’s Estate or the Participant’s Trust, as the
case may be, an amount equal to the Option Excess Price with respect to the
termination of the then exercisable outstanding Share Options held by the
Participant, Participant’s Estate or Participant’s Trust. All outstanding
Share Options held by the Participant, whether or not then exercisable,
shall be automatically terminated upon the payment by the Company to the
Participant, pursuant to the provisions of this Section 8(b), of an amount
equal to the Option Excess Price. If the Option Excess Price is zero or a
negative number, all outstanding Share Options held by the Participant,
whether or not then exercisable, shall be automatically

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terminated upon the repurchase of Shares and Share Options as provided
in this Section 8.

     (v) Repurchase Period. The Company shall have until 90 days
following the termination of Participant’s employment or service as an
Employee, Consultant or Non-Employee Director giving rise to the Company’s
call right in accordance with this Section 8(b) in which to give a
Redemption Notice to the Participant of the exercise of such election in
accordance with Section 8(c) hereof.

     (c) In the case of an exercise of the right provided under Section 8(a), the
Participant, the Participant’s Estate and/or the Participant’s Trust, as the case
may be, shall send written notice to the Company of its intention to sell Shares
and/or to terminate Share Options in exchange for the issuance of Shares, and in the
case the Company elects to exercise its right under Section 8(b), the Company shall
send written notice to the Participant, the Participant’s Estate and/or the
Participant’s Trust of its intention to purchase Shares and/or terminate or cash out
Share Options (either of the foregoing notices, a “Redemption Notice”). The
completion of the purchase shall take place at the principal office of the Company
on the tenth business day after the giving of the Redemption Notice. The purchase
price paid in connection with the repurchase of Shares pursuant to this Section 8
shall be paid by delivery to the Participant, the Participant’s Estate or the
Participant’s Trust, as the case may be, of a certified bank check or checks in the
appropriate amount payable to the order of the Participant, the Participant’s Estate
or the Participant’s Trust, as the case may be, against delivery of certificates or
other instruments representing the Shares so purchased, appropriately endorsed or
executed by the Participant, the Participant’s Estate or the Participant’s Trust, or
his or its duly authorized representative.

     (d) Pro Rata Repurchases. Notwithstanding anything to the contrary
contained in this Section 8, if at any time consummation of all purchases and
payments to be made by the Company pursuant to this Plan and any other agreements
with employees or other service providers would result in an Event, then the Company
shall make purchases from, and payments to, the Participant and the other employees
or other service providers pro rata (on the basis of the proportion of the number of
Shares each such Participant and all other employees and other service providers
have elected or are required to sell to the Company) for the maximum number of
Shares without resulting in an Event (the “Maximum Repurchase Amount”). The
provisions of Section 8(a) and 8(b) shall apply in their entirety to payments and
repurchases with respect to Shares that may not be made due to the limits imposed by
the Maximum Repurchase Amount under this Section 8(d). Until all of such Shares are
purchased and paid for by the Company, the Participant and the other employees and
service providers whose Shares are not purchased in accordance with this Section
8(d) shall have priority, on a pro rata basis, over other purchases of Shares by the
Company pursuant to this Plan and any other agreement with employees and other
service providers.

12

 

     9. Company’s Right of First Refusal. During the period commencing immediately following the fifth anniversary of the Grant Date
and continuing through the effective date of a Qualified Public Offering, the Company or its
assignee(s) shall have a right of first refusal to purchase, on the terms and conditions set forth
in this Section 9 (the “Right of First Refusal”), any Shares held by the Participant or any
transferee thereof (either being sometimes referred to herein as the “Holder”) to the extent these
Shares are permitted to be transferred in accordance with the terms of this Plan before these
Shares may be Transferred (including transfer by gift or operation of law) by the Participant. For
purposes of this Plan, a “Qualified Public Offering” means the first Public Offering which results
in gross proceeds in excess of $250,000,000.

     (a) Notice of Proposed Transfer. The Holder of the Shares shall
deliver to the Company a written notice (the “Notice”) stating: (i) the Holder’s
bona fide intention to Transfer such Shares; (ii) the name of each proposed
purchaser or other transferee (“Proposed Transferee”); (iii) the number of Shares to
be Transferred to each Proposed Transferee; and (iv) the bona fide cash price or
other consideration for which the Holder proposes to Transfer the Shares (the
“Offered Price”), and the Holder shall offer the Shares at the Offered Price to the
Company or its assignee(s).

     (b) Exercise of Right of First Refusal. At any time within thirty (30)
days after receipt of the Notice, the Company and/or its assignee(s) may, by giving
written notice to the Holder, elect to purchase all, but not less than all, of the
Shares proposed to be Transferred to any one or more of the Proposed Transferees, at
the Purchase Price determined in accordance with Section 9(c) hereof.

     (c) Purchase Price. The purchase price (“Purchase Price”) for the
Shares purchased by the Company or its assignee(s) under this Section 9 shall be the
Offered Price. If the Offered Price includes consideration other than cash, the
cash equivalent value of the non-cash consideration shall be determined by the Board
of Directors in good faith.

     (d) Payment. Payment of the Purchase Price shall be made, at the
option of the Company or its assignee(s), in cash (by check), by cancellation of all
or a portion of any outstanding indebtedness of the Holder to the Company (or, in
the case of repurchase by an assignee, to the assignee), or by any combination
thereof within 30 days after receipt of the Notice or in the manner and at the times
set forth in the Notice.

     (e) Holder’s Right to Transfer. If all of the Shares proposed in the
Notice to be Transferred to a given Proposed Transferee are not purchased by the
Company and/or its assignee(s) as provided in this Section 9, then the Holder may
sell or otherwise Transfer such Shares to that Proposed Transferee at the Offered
Price or at a higher price, provided that such sale or other Transfer is consummated
within 120 days after the date of the Notice, that any such sale or other Transfer
is effected in accordance with any applicable securities laws and that the Proposed
Transferee agrees in writing that the provisions of this Section 9 shall continue to
apply to the Shares in the hands of such Proposed Transferee. If

13

 

the Shares described in the Notice are not Transferred to the Proposed
Transferee within such period, a new Notice shall be given to the Company, and the
Company and/or its assignees shall again be offered the Right of First Refusal
before any Shares held by the Holder may be sold or otherwise Transferred.

     (f) Exception for Certain Family Transfers. Anything to the contrary
contained in this Section 9 notwithstanding, the Transfer of any or all of the
Shares during the Participant’ s lifetime or on the Participant’s death by will or
intestacy to the Participant’s immediate family or a trust for the benefit of the
Participant’s immediate family shall be exempt from the provisions of this Section
9. “Immediate Family’ as used herein shall mean spouse, lineal descendant or
antecedent, father, mother, brother or sister. In such case, the transferee or
other recipient shall receive and hold the Shares so transferred subject to the
provisions of this Section 9, and there shall be no further Transfer of such Shares
except in accordance with the terms of this Section 9.

10. Share Transfer Restrictions

     Except for Transfers contemplated under Sections 8 and 11 hereof, at no time during the period
commencing on the Grant Date and continuing through the later of (i) the fifth anniversary thereof,
unless written consent providing otherwise has been obtained from the Company and (ii) the date
that is the earlier of (A) the effective date of a registration statement filed by the Company
under the Securities Act in connection with an underwritten public offering of any class of its
equity securities or (B) the date on which any class of securities of the Company become registered
pursuant to Section 12 of the Exchange Act, shall the Participant Transfer any Shares, and any
attempt to do so shall be void. Notwithstanding the foregoing, nothing in this Section 10 shall
prevent Transfers: (i) to the Company following the fifth anniversary of the Grant Date; (ii) to
the Participant’s Estate or the Estate of a Person who has become a holder of Shares in accordance
with the terms of this Plan; or (iii) to the Participant’s Trust that is made after the Grant Date
in compliance with U.S. federal securities laws, provided that in such Transfers are made expressly
subject to this Plan and that the transferee agrees in writing to be bound by the terms and
conditions hereof.

11.  “Bring-Along” Right

     In the event that at any time prior to the fifth anniversary of a Public Offering, LU, KKR or
SLP (or an Affiliate thereof to which Shares have been Transferred) proposes to transfer for value
any of their holdings of Shares to any person (a “Proposed Purchaser”), in any transaction other
than a Public Offering (a “Bring-Along Sale”), LU, KKR or SLP may provide the Participant or the
Participant’s Estate or Participant’s Trust, as the case may be, written notice (a “Bring-Along
Notice”) of such Bring-Along Sale and the material terms thereof not less than 10 business days
prior to the proposed date of the Bring-Along Sale (the “Bring-Along Sale Date”), and the
Participant hereby agrees to sell to such Proposed Purchaser, on the same terms and subject to the
same conditions applicable to Shares that LU, KKR or SLP, as the case may be (or the Affiliate
thereof) proposes to sell in the Bring-Along Sale, the number of Shares equal to the product of (a)
the sum of the number of Shares (i) then held by the Participant or the Participant’s Estate or the
Participant’s Trust, including all Shares subject to Options that are exercisable and (ii) any
Share Options that will become exercisable prior to or in connection with

14

 

the Bring-Along Sale, multiplied by (b) the ratio of (i) the number of Shares that LU, KKR or
SLP (or an Affiliate to which Shares have been Transferred) proposes to sell in the proposed
Bring-Along Sale, divided by (ii) the number of Shares then held by LU, KKR or SLP, as the case may
be (or an Affiliate to which Shares have been Transferred) at the same price and upon the same
terms and conditions applicable to the Transfer of Shares held by LU, KKR or SLP, as the case may
be (or an Affiliate to which Shares have been Transferred). The Participant, Participant’s Trust
or Participant’s Estate, as the case may be, shall exercise Share Options to the extent necessary
to obtain a number of Shares sufficient to fulfill its obligation to sell Shares in a Bring-Along
Sale pursuant to this Section 11. The provisions of this Section 11 shall apply regardless of the
form of consideration in the Bring-Along Sale.

     12. Lock-Up Period

          The Participant, if so requested by the Company or any representative of the underwriters (the
“Managing Underwriter”) in connection with any registration of the public offering of any
securities of the Company pursuant to an effective registration statement under the Securities Act,
shall not sell or otherwise transfer any Shares not covered by such registration within 8 days
prior to, or within 180 days (or such other period as may be requested in writing by the Managing
Underwriter and agreed to in writing by the Company) (the “Market Standoff Period”) after, the
effective date of such registration statement. The Company may impose stop-transfer instructions
with respect to securities subject to the foregoing restrictions until the end of a Market Standoff
Period.

     13. Expiration of Certain Provisions

          The provisions contained in Sections 8, 9, 10 and 11 of this Plan, and the portion of any
other provisions of this Plan that incorporate the provisions of any of such Sections, shall
terminate and be of no further force or effect upon the consummation of a Change of Control.

     14. Transfers and Leaves of Absence

          For purposes of the Plan, unless the Committee determines otherwise:  (a) a transfer of a
Participant’s employment or service without an intervening period of separation among the Company
and any Subsidiary shall not be deemed a termination of employment or service, and (b) a
Participant who is granted in writing a leave of absence shall be deemed to have remained in the
employ or service of the Company or a Subsidiary during such leave of absence.

     15. Adjustments

          In the event of any change in the outstanding Shares (including an exchange for cash) by
reason of a stock split, reverse stock split, spin-off, stock dividend, stock combination or
reclassification, recapitalization, reorganization, consolidation, merger, change of control, or
similar event which results in the distribution of Shares or other equity securities without the
receipt of consideration by the Company, the Committee shall adjust appropriately the number and
kind of Shares subject to the Plan and available for or covered by Grants and Share prices related
to outstanding Grants, and make such other revisions to outstanding Grants as it deems are
equitably required.

15

 

     16. Merger, Consolidation, Exchange, Acquisition, Distribution, Liquidation or
Dissolution

          In its sole discretion, and on such terms and conditions as it deems appropriate, coincident
with or after the grant of any Share Option, the Committee may provide that such Share Option
cannot be exercised after the consummation of the merger or consolidation of the Company into
another corporation, the exchange of all or substantially all of the assets of the Company for the
securities of another corporation, the acquisition by another corporation of 80% or more of the
Company’s then outstanding voting shares or the recapitalization, reclassification, liquidation or
dissolution of the Company, or other adjustment or event which results in Shares being exchanged
for or converted into cash, securities or other property, and if the Committee so provides, it
shall, on such terms and conditions as it deems appropriate in its absolute discretion, also
provide, either by the terms of such Share Option or by a resolution adopted prior to the
consummation of such merger, consolidation, exchange, acquisition, recapitalization,
reclassification, liquidation or dissolution, that, for some period of time prior to the
consummation of such transaction or event, such Share Option shall be exercisable as to all shares
subject thereto, notwithstanding anything to the contrary herein (but subject to the provisions of
Section 7(b)) and that, upon the consummation of such event, such Share Option shall terminate and
be of no further force or effect; provided, however, that the Committee may also provide, in its
absolute discretion, that even if the Share Option shall remain exercisable after any such event,
from and after such event, any such Share Option shall be exercisable only for the kind and amount
of cash, securities and/or other property, or the cash equivalent thereof (net of any applicable
exercise price), receivable as a result of such event by the holder of a number of shares for which
such Share Option could have been exercised immediately prior to such event.

          In the event of a “spin-off” or other substantial distribution of assets of the Company which
has a material diminutive effect upon the Fair Market Value of the Company’s Shares, the Committee
shall in its discretion make an appropriate and equitable adjustment to any Share Option exercise
price to reflect such diminution.

     17. Amendment and Termination

          The Committee shall have the authority to make such amendments to any terms and conditions
applicable to outstanding Grants as are consistent with this Plan provided that, except for
adjustments under Section 15 or 16 hereof and amendments under Section 20 hereof, no such action
shall modify such Grant in a manner adverse to the Participant without the Participant’s consent
except as such modification is provided for or contemplated in the terms of the Grant. The Board
of Directors may amend, suspend or terminate the Plan.

     18. Withholding Taxes

          The Company shall have the right to deduct from any cash payment made under the Plan any taxes
required by law to be withheld with respect to such payment. It shall be a condition to the
obligation of the Company to deliver Shares upon the exercise of a Share Option that the
Participant pay to the Company such amount as may be requested by the Company for the purpose of
satisfying any liability for such withholding taxes. Any Grant Agreement may provide that the
Participant may elect, in accordance with any conditions set forth in such Grant

16

 

Agreement, to pay a portion or all of such withholding taxes in Shares (including Shares
acquired by contemporaneous exercise of other Share Options).

     19. Registration

          If the Company shall have filed a registration statement pursuant to the requirements of
Section 12 of the Exchange Act, or engaged in a Public Offering, (i) the Company shall use
reasonable efforts to register the Share Options and the Shares to be acquired on exercise of the
Share Options on a Form S-8 Registration Statement or any successor to Form S-8 to the extent that
such registration is then available with respect to such Share Options and Shares and (ii) the
Company will use reasonable efforts to file the reports required to be filed by it under the
Securities Act and the Exchange Act and the rules and regulations adopted by the Securities and
Exchange Commission (“SEC”) thereunder, to the extent required from time to time to enable the
Participant to sell Shares without registration under the Securities Act within the limitations of
the exemptions provided under any applicable rule or regulation of the SEC. Notwithstanding
anything contained in this Section 19, the Company may deregister under Section 12 of the Exchange
Act if it is then permitted to do so pursuant to the Exchange Act and the rules and regulations
thereunder. Nothing in this Section 19 shall be deemed to limit in any manner any otherwise
applicable restrictions on sales of Shares.

     20. Section 409A.

          The Participant acknowledges and agrees that, to the extent applicable, this Plan and the
Grant Agreement shall be interpreted in accordance with Section 409A of the Code and any proposed
or final Treasury Regulations promulgated thereunder. Notwithstanding any provision of this Plan
to the contrary, in the event that the Company determines that any amounts payable hereunder will
be immediately taxable to the Participant under Section 409A of the Code, the Company may (a) adopt
such amendments to this Plan or the Grant Agreement and appropriate policies and procedures,
including amendments and policies with retroactive effect, that the Company determines necessary or
appropriate to preserve the intended tax treatment of the benefits provided by this Plan and/or (b)
take such other actions as the Company determines necessary or appropriate to comply with the
requirements of Section 409A of the Code.

     21. Grant Agreement

          The Options and the Shares issued to the Participant pursuant to this Plan shall be subject to
all of the terms and provisions of the Grant Agreement, to the extent applicable to the Options and
such shares. In the event of any conflict between the Grant Agreement and the Plan, the terms of
the Plan shall control.

     22. Individuals Subject to Non-Singapore Jurisdictions

          To the extent necessary to comply with the laws of any relevant jurisdiction, notwithstanding
any provision in this Plan to the contrary, the Committee shall have the discretion to adopt, on
behalf of the Company, such amendments and/or one or more sub-plans applicable to Participants who
are subject to laws of jurisdictions outside of Singapore as the Committee deems necessary or
advisable in order to comply with applicable laws, regulations or customary business practice.

17

 

23. Shareholder Meeting Notice Period

     As permitted by Section 177(3) of the Singapore Companies Act, the Participant hereby agrees
to shorter notice than required by Section 177(2) of the Singapore Companies Act with respect to
any meeting of the Company, other than the Company’s annual general meeting, which shorter notice
may be as little as immediately prior to the commencement of such meeting. To such end, the
Participant hereby irrevocably appoints and constitutes LU, and its assigns, as the Participant’s
true and lawful attorney, in the Participant’s name, place and stead, to make, execute and
acknowledge documents for the limited purpose of agreeing to such shorter notice. The Participant
agrees to provide the Company with any documentation reasonably requested by the Company to give
effect to the agreements in the two immediately preceding sentences.

24. Effective and Termination Dates

     The Plan was originally effective as of December 1, 2005, the effective date of its approval
by the shareholders of the Company and shall terminate on November 30, 2015, subject to earlier
termination by the Board of Directors pursuant to Section 17. The Plan was previously amended and
restated by the Board of Directors effective as of April 14, 2006. The Plan as amended and
restated herein was adopted by the Board of Directors effective as of
February 25, 2008.

25. Shareholder Approval

     The Plan, as previously amended and restated effective as of April 14, 2006 was approved by
the Company’s shareholders on April 11, 2007.

26. Information Disclosure

     The Company shall provide Participants with the information described in Rules 701(e)(3), (4),
and (5) under the Securities Act no less frequently than every six (6) months commencing no later
than February 28, 2008, with the financial statements therein being not more than 180 days old, in
any event, subject to each Participant agreeing, in a form acceptable to the Company, to keep the
information to be provided pursuant to this Section 26 confidential. The information required by
this Section 26 shall be provided to Participants by either physical or electronic delivery or by
written notice to the Participants of the availability of the information on an Internet site that
may be password-protected and of any password needed to access the information. For the avoidance
of doubt, if a Participant does not agree to keep the information to be provided pursuant to this
Section 26 confidential, then the Company may elect not to provide such Participant any information
under this Section 26.

18exv4w29

 

Exhibit 4.29

SEPARATION AGREEMENT

     This
Separation Agreement (the “Agreement”) is effective
as of August 16, 2007, by
and between James Stewart (“Employee”) and Avago Technologies Limited, a company organized
under the laws of Singapore (the “Company”), with reference to the following facts:

          A. Employee’s status as an employee and/or officer of Avago Technologies U.S. Inc., a
subsidiary of the Company (“Avago U.S.”), the Company and any subsidiary or other affiliate
of the Company will end due to termination of such employment or office effective on December 1,
2007.

          B. Employee and the Company desire to assure a smooth and effective transition of Employee’s
duties to his successor and to wind-up their employment relationship amicably.

          NOW, THEREFORE, in consideration of the mutual covenants and agreements hereinafter set forth,
the parties agree as follows:

          1. Termination Date. Employee acknowledges that his status as an employee and/or
officer of Avago U.S., the Company and any subsidiary or other affiliate of the Company shall end
due to his voluntary resignation from such employment or office on December 1, 2007 (the
“Termination Date”). Employee hereby agrees to execute any document necessary to give
effect to the preceding sentence.

          2. Termination Payments. The Company shall cause Avago U.S. to continue to pay to
Employee his base salary at the rate of $287,052 per annum (“Base Salary”) through the
Termination Date in accordance with Avago U.S.’s normal payroll practices. On the Termination
Date, the Company shall cause Avago U.S. to pay to Employee any accrued but unpaid Base Salary and
Flexible Time Off in accordance with Avago U.S.’s normal termination pay procedures.

          3. Separation Payments and Benefits. Without admission of any liability, fact or
claim, the Company hereby agrees, subject to the execution hereof by both parties, Employee’s
continuing performance of his obligations pursuant to this Agreement (including best efforts to
ensure an orderly transition to his successor), and that certain Agreement Regarding Confidential
Information and Proprietary Development between the Company and Employee dated as of November 14,
2005, (the “ARCIPD”) and Employee executing within twenty-one (21) days of the Termination Date and
failing to revoke during the applicable revocation period, if any, a general release of all claims
against the Company and its affiliates in a form acceptable to the Company (the “Release”),
and subject to approval of the Board of Directors, to provide Employee severance benefits as
follows:

          (a) Target Bonus. The Company shall cause Avago U.S. to pay to Employee $114,400,
which represents Employee’s forty percent (40%) target bonus opportunity for fiscal year
2007, payable in a single cash lump sum on, or as soon as administratively practicable
following, the date the Release becomes no longer subject to revocation;

          (b) Equity.

          i. Roll-Over Options. The Company and Employee acknowledge that, subject to the terms
of the Equity Incentive Plan for Executive Employees of Avago Technologies Limited and
Subsidiaries, as amended from time to time (the “Equity Incentive Plan”), Employee
was granted roll-over options to purchase an aggregate of

1

 

133,333 ordinary shares of the Company at $1.25 per share on December 1, 2005 (the
“Roll-Over Options”). The Company and Employee agree that the Roll-Over Options
are fully vested. The Company shall pay to Employee a cash lump sum in the amount
calculated by multiplying 133,333 times the result of subtracting (A) $1.25 from (B) the
per share fair market value of the ordinary shares of the Company as of the Termination
Date, as determined by the Company in its sole discretion, payable on, or as soon as
administratively practicable following, the date the Release becomes no longer subject to
revocation. Once the payment to Employee contemplated by this Section 2(b)(i) has been
made by the Company, Employee agrees that he shall have no further right, title or
interest in any Roll-Over Options or the ordinary shares of the Company underlying such
options, the Equity Incentive Plan (with respect to such options) and any other agreements
entered into with respect thereto

          ii. Granted Options. The Company and Employee acknowledge that, subject to the terms
of the Equity Incentive Plan, Employee was granted options to purchase an aggregate of
366,667 ordinary shares of the Company at $5.00 per share on December 1, 2005 (the
“Granted Options”). The Company and Employee agree that, provided Employee does
not exercise any of the Granted Options prior to the Termination Date, the Granted Options
shall become vested, to the extent necessary, with respect to forty percent (40%) of the
ordinary shares subject thereto (the “Vested Granted Options”), as of the
Termination Date. The Company shall pay to Employee a cash lump sum in the amount
calculated by multiplying 146,665 times the result of subtracting (A) $5.00 from (B) the
per share fair market value of the ordinary shares of the Company as of the Termination
Date, as determined by the Company in its sole discretion, payable on, or as soon as
administratively practicable following, the date the Release becomes no longer subject to
revocation. As of the Termination Date, the Granted Options which are not Vested Granted
Options shall be cancelled for no consideration. Once payment to Employee contemplated by
this Section 2(b)(ii) has been made by the Company, Employee agrees that he shall have no
further right, title or interest in any Granted Options or the ordinary shares of the
Company underlying such options, the Equity Incentive Plan (with respect to such options)
and any other agreements entered into with respect thereto.

          (c) Taxes. Employee understands and agrees that all payments under this Agreement
will be subject to appropriate tax withholding and other deductions, as and to the extent
required by law. To the extent any taxes may be payable by Employee for the benefits
provided to him by this Agreement beyond those withheld by the Company, Employee agrees to
pay them himself and to indemnify and hold the Company and the other entities released
herein harmless for any tax claims or penalties, and associated attorneys’ fees and costs,
resulting from any failure by him to make required payments.

          (d) Sole Separation Benefit. Employee agrees that the payments provided by this
Agreement are not required under the Company’s normal policies and procedures and are
provided as a severance solely in connection with this Agreement. Employee further
acknowledges and agrees that the payments referenced in this Agreement constitute adequate
and valuable consideration, in and of themselves, for the promises contained in this
Agreement.

          4. Full Payment; Termination of Employment Agreement; Survival. Employee acknowledges
that the payment and arrangements herein shall constitute full and complete satisfaction of any and
all amounts properly due and owing to Employee as a result of his employment with the

2

 

Company and any subsidiary or affiliate of the Company, and the termination thereof. Nothing
in this Agreement shall diminish the obligations of Employee under the ARCIPD.

          5. Non-Solicitation.

          (a) Non-Solicitation. For the period beginning as of the date of this Agreement and
ending on the twelve month anniversary of the Termination Date (the “Restricted
Period”), Employee shall not, either directly or indirectly and shall not permit any
Covered Entity (as defined below) which is Controlled (as defined below) by Employee to,
either directly or indirectly, (A) solicit, or take any other action that is intended to
solicit, the business of any customers of the Company or any subsidiary or affiliate of
the Company, (B) solicit, take away, or attempt to solicit or take away (either on such
Employee’s behalf or on behalf of any other person or entity) any person (1) who is then
an employee of the Company or any subsidiary or affiliate of the Company, or (2) who has
terminated his or her employment with the Company or any subsidiary or affiliate of the
Company within the six (6) months preceding such solicitation or other action, or (C)
entice or solicit or attempt to induce, solicit or influence (either on such Employee’s
behalf or on behalf of any other person or entity) any employee of the Company or any
subsidiary or affiliate of the Company to terminate or otherwise leave their employment
with the Company or any subsidiary or affiliate of the Company. Additionally, during the
Restricted Period, Employee shall not, either directly or indirectly and shall not permit
any Covered Entity which is Controlled by Employee to, either directly or indirectly, hire
or attempt to hire (either on such Employee’s behalf or on behalf of any other person or
entity) any person (1) who is then an employee of the Company or any subsidiary or
affiliate of the Company, or (2) who has terminated his or her employment with the Company
or any subsidiary or affiliate of the Company within the six (6) months preceding such
hiring.

          (b) Enforcement; Remedies. Employee hereby agrees and acknowledges that the Company
has a valid and legitimate business interest in protecting the Business in the Territory
from any activity prohibited by this Section 5. Employee acknowledges that Employee’s
expertise in the Business is of a special and unique character which gives this expertise
a particular value, and that a breach of the covenants in this Section 5 by Employee will
cause serious and irreparable harm to the Company. Employee therefore acknowledges that a
breach of the covenants in this Section 5 by Employee cannot be adequately compensated in
an action for damages at law, and equitable relief would be necessary to protect the
Company from a violation of this Agreement and from the harm which this Agreement is
intended to prevent. By reason thereof, Employee acknowledges that the Company is
entitled, in addition to any other remedies it may have under this Agreement or otherwise,
to preliminary and permanent injunctive and other equitable relief to prevent or curtail
any breach of this Agreement without any requirement to prove actual damages or post a
bond. Employee acknowledges, however, that no specification in this Agreement of a
particular legal or equitable remedy may be construed as a waiver of or prohibition
against pursuing other legal or equitable remedies in the event of a breach of this
Agreement by Employee.

          (c) Severability and Modification of Any Unenforceable Covenant. It is the parties’
intent that each of the covenants under this Section 5 be read and interpreted with every
reasonable inference given to its enforceability. However, it is also the parties’ intent
that if any term, provision or condition of the covenants is held to be invalid, void or
unenforceable, the remainder of the provisions thereof shall remain in full force and
effect and shall in no way be affected, impaired or invalidated. It is also the parties’
intent that if it

3

 

is determined any of the covenants are unenforceable because of overbreadth, then the
covenants shall be modified so as to make them reasonable and enforceable under the
prevailing circumstances.

          (d) Tolling. In the event of the breach by Employee of any covenant set forth in
Section 5(a) hereof, the running of the Restricted Period, as applicable, shall be
automatically tolled and suspended for the amount of time that the breach continues, and
shall automatically recommence when the breach is remedied so that the Company shall
receive the benefit of Employee’s compliance with the covenants.

          (e) Definitions. For the purposes of this Section 5, the following terms are defined
as follows:

               i. “Affiliate” means, with respect to any party, any corporation,
limited liability company, partnership, joint venture, firm and/or other entity
which Controls, is Controlled by or is under common Control with such party.

               ii. “Business” means the business of the Company as of the effective
date of this Agreement, and any other business activity or service in which the
Company is engaged or making an active effort to develop business as of the
Termination Date.

               iii. “Control” means (i) in the case of corporate entities, direct or
indirect ownership of at least fifty percent (50%) of the stock or participating
assets entitled to vote for the election of directors; and (ii) in the case of
non-corporate entities (such as individuals, limited liability companies,
partnerships or limited partnerships), either (A) direct or indirect ownership of at
least fifty percent (50%) of the equity interest, or (B) the power to direct the
management and policies of the noncorporate entity.

               iv. “Covered Entity” means every Affiliate of Employee, and every
business, association, trust, corporation, partnership, limited liability company,
proprietorship or other entity in which Employee has invested (whether through debt
or equity securities), or has contributed any capital or made any advances to, or in
which any Affiliate of Employee has an ownership interest or profit sharing
percentage, or a firm from which Employee or any Affiliate of Employee receives or
is entitled to receive income, compensation or consulting fees in which Employee or
any Affiliate of Employee has an interest as a lender (other than solely as a trade
creditor for the sale of goods or provision of services that do not otherwise
violate the provisions of this Agreement); provided, however, that only entities
whose management decisions are influenced by Employee shall be considered Covered
Entities for purposes of this Agreement. The agreements of Employee contained
herein specifically apply to each entity which is presently a Covered Entity or
which becomes a Covered Entity subsequent to the date of this Agreement, and in both
cases is a Covered Entity at the time of the violation of Section 5.
Notwithstanding anything contained in the foregoing provisions to the contrary, the
term “Covered Entity” shall not include the Company or any subsidiary or affiliate
of the Company.

               v. “Territory” means each and every state, county, city or other
political subdivision or geographic location in the United States or in any other

4

 

territory or jurisdiction outside of the United States, in each case in which
the Company or any subsidiary or affiliate of the Company is engaged in the
Business.

               6. Other Agreements. The parties further agree that:

               (a) Non-Disparagement. Employee agrees that he shall not publicly disparage, defame
or criticize the Company, its subsidiaries, its affiliates and their respective
affiliates, directors, officers, agents, partners, shareholders or employees. Nothing in
this Section 6(a) shall have application to any evidence or testimony requested by any
court, arbitrator or government agency.

               (b) Cooperation. Subject to Employee’s other business pursuits, including other
employment, Employee agrees to cooperate fully and promptly with the Company in its
efforts to prosecute or defend itself against any claim, suit, demand or cause of action
(not brought by the Company against Employee or by Employee against the Company); provided
that the Company shall be responsible for any reasonable and documented out-of-pocket
costs or expenses associated with such cooperation (including reasonable attorneys’ fees).

               (c) Personal Expenses. Any personal expenses incurred by the Company on Employee’s
behalf, including personal charges to any Company credit card (if any), shall promptly be
reimbursed by Employee upon presentation by the Company.

               (d) Transfer of Company Property. On or before the Termination Date, Employee agrees
to turn over to the Company any and all property, tangible or intangible, relating to its
business, which he possessed or had control over at any time (including, but not limited
to, Company-provided credit cards, building or office access cards, keys, computer or
other business equipment, manuals, files, documents, records, software, employee database
and other data), and that he shall not retain any copies, compilations, extracts,
excerpts, summaries or other notes of any such manuals, files, documents, records,
software, customer or employee database or other data files, memoranda, records, and other
documents, and any other physical or personal property which are the property of the
Company and which he had in his possession, custody or control, including any computers,
cellular phones, PDAs or similar business equipment.

          7. Confidentiality. Except as may be required by law, neither Employee, his
attorneys, nor any person acting by, through, under or in concert with them, shall disclose the
terms of this Agreement to any individual or entity. It shall not be a violation of this provision,
however, for Employee to advise his accountant or similar professional advisor owing a duty of
confidentiality to Employee of the terms of this Agreement and the Released Matters contained
herein.

          8. Dispute Resolution. Any controversy, claim, cause of action, in law or equity, or
dispute involving the parties (or their affiliated persons or entities) directly or indirectly
concerning this Agreement, or the subject matter thereof, including its enforcement, performance,
breach, or interpretation, shall be resolved solely and exclusively by final and binding
arbitration held in Larimer County Colorado by three (3) arbitrators in accordance with the rules
of employment arbitration then followed by the American Arbitration Association or any successor to
the functions thereof. The Company and Employee shall each select an arbitrator and the two (2)
selected arbitrators shall select the third (3rd) arbitrator. The arbitrators shall
apply Colorado law in the resolution of all controversies, claims and disputes and shall have the
right and authority to determine how his or her decision or determination as to each issue or
matter in dispute may be implemented or enforced. Any decision or

5

 

award of the arbitrator shall be final and conclusive on the parties to this Agreement and
their respective affiliates, and there shall be no appeal therefrom other than from gross
negligence or willful misconduct. Notwithstanding the foregoing, claims regarding worker’s
compensation and unemployment compensation benefits shall not be subject to arbitration under this
Agreement. Each party in any such arbitration shall be responsible for its own attorneys’ fees,
costs and necessary disbursement; provided, however, that if one party refuses to arbitrate and the
other party seeks to compel arbitration by court order, if such other party prevails, it shall be
entitled to recover reasonable attorneys’ fees, costs and necessary disbursements.

     The parties hereto agree that any action to compel arbitration pursuant to this Agreement may
be brought in any appropriate state court in Colorado, and in connection with such action to
compel, the laws of Colorado law shall control. Application may also be made to such court for
confirmation of any decision or award of the arbitrator, for an order of the enforcement and for
any other remedies which may be necessary to effectuate such decision or award. The parties hereto
hereby consent to the jurisdiction of the arbitrator and of such court and waive any objection to
the jurisdiction of such arbitrator and court.

     Notwithstanding the foregoing, the Company shall be entitled to seek injunctive relief, in any
court of competent jurisdiction, to enforce this Agreement and this Section 8 shall not limit the
right of the Company to seek judicial relief pursuant to Section 5(b) of this Agreement without
prior arbitration.

          9. Miscellaneous. This Agreement together with the ARCIPD is the entire agreement
between the parties with regard to the subject matter hereof. This Agreement shall be interpreted
in accordance with the laws of Colorado and federal law where applicable. Whenever possible, each
provision of this Agreement shall be interpreted in a manner as to be effective and valid under
applicable law, but if any provision shall be held to be prohibited or invalid under applicable
law, such provision shall be ineffective only to the extent of such prohibition or invalidity,
without invalidating or affecting the remainder of such provision or any of the remaining
provisions of this Agreement. Employee acknowledges that there are no other agreements, written,
oral or implied, and that he may not rely on any prior negotiations, discussions, representations
or agreements. This Agreement may be modified only in writing, and such writing must be signed by
both parties and recited that it is intended to modify this Agreement. This Agreement may be
executed in separate counterparts, each of which is deemed to be an original and all of which taken
together constitute one and the same agreement. In the event of any material breach of this
Agreement, not cured within ten (10) days after written notice, the non-defaulting party shall have
all rights and remedies available under law. Each party shall be solely responsible for and shall
bear all of its own costs and expenses incident to its obligations under and in respect of this
Agreement, including, but not limited to, any such costs and expenses incurred by such party in
connection with the negotiation, preparation, performance of and compliance with the terms of this
Agreement (including, without limitation, the fees and expenses of legal counsel or other
representatives).

          10. Right to Terminate Agreement. This Agreement may be terminated by Employee by
written notice at any time prior to October 15, 2007; provided that nothing herein shall be
construed to change the at-will nature of Employee’s employment.

[Signature page follows]

6

 

     IN WITNESS WHEREOF, the undersigned have caused this Separation Agreement to be duly executed
and delivered as of the date indicated next to their respective signatures below.

	 	 	 	 	 	 	 	 	 
	DATED:
8-16, 2007

	 	 	 	/s/ James Stewart 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	James Stewart	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	AVAGO TECHNOLOGIES LIMITED	 	 
	DATED: 8-16, 2007
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	/s/ Hock E. Tan 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Hock E. Tan	 	 
	 

	 	 	 	 	 	Title: President	 	 

[Signature Page to Avago Technologies Limited Separation Agreement]

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