Document:

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                                                                    EXHIBIT 10.2

                         MARVELL TECHNOLOGY GROUP, LTD.

                       1997 DIRECTORS' STOCK OPTION PLAN

        1.      PURPOSES OF THE PLAN. The purposes of this Directors' Stock
Option Plan are to attract and retain the best available personnel for service
as Directors of the Company, to provide additional incentive to the Outside
Directors of the Company to serve as Directors, and to encourage their
continued service on the Board.

                All options granted hereunder shall be nonstatutory stock
        options.

        2.      DEFINITIONS. As used herein, the following definitions shall
        apply:

                (a)     "Board" shall mean the Board of Directors of the
        Company.

                (b)     "Code" shall mean the Internal Revenue Code of 1986, as
        amended.

                (c)     "Common Stock" shall mean the Common Stock of the
        Company.

                (d)     "Company" shall mean MARVELL TECHNOLOGY GROUP, LTD., a
        Bermuda corporation.

                (e)     "Continuous Status as a Director" shall mean the absence
        of any interruption or termination of service as a Director.

                (f)     "Director" shall mean a member of the Board.

                (g)     "Employee" shall mean any person, including any officer
        or director, employed by the Company or any Parent or Subsidiary of the
        Company who works at least twenty (20) hours a week for the Company. The
        payment of a director's fee by the Company shall not be sufficient in
        and of itself to constitute "employment" by the Company.

                (h)     "Exchange Act" shall mean the Securities Exchange Act of
        1934, as amended.

                (i)     "Option" shall mean a stock option granted pursuant to
        the Plan. All options shall be nonstatutory stock options (i.e., options
        that are not intended to qualify as incentive stock options under
        Section 422 of the Code).

                (j)     "Optioned Stock" shall mean the Common Stock subject to
        an Option.

                (k)     "Optionee" shall mean an Outside Director who receives
        an Option.

                (l)     "Outside Director" shall mean a Director who is not an
        Employee.

                (m)     "Parent" shall mean a "parent corporation," whether now
        or hereafter existing, as defined in Section 424(e) of the Code.

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          (n)  "Plan" shall mean this 1997 Directors' Stock Option Plan.

          (o)  "Share" shall mean a share of the Common Stock, as adjusted in
accordance with Section 11 of the Plan.

          (p)  "Subsidiary" shall mean a "subsidiary corporation," whether now
or hereafter existing, as defined in Section 424(f) of the Code.

     3.   STOCK SUBJECT TO THE PLAN. Subject to the provisions of Section 11 of
the Plan, the maximum aggregate number of Shares which may be optioned and sold
under the Plan is 150,000 Shares (the "Pool") of Common Stock. The Shares may
be authorized, but unissued, or reacquired Common Stock.

          If an Option should expire or become unexercisable for any reason
without having been exercised in full, the unpurchased Shares which were
subject thereto shall, unless the Plan shall have been terminated, become
available for future grant under the Plan. If Shares which were acquired upon
exercise of an Option are subsequently repurchased by the Company, such Shares
shall not in any event be returned to the Plan and shall not become available
for future grant under the Plan.

     4.   ADMINISTRATION OF AND GRANTS OF OPTIONS UNDER THE PLAN.

          (a)  ADMINISTRATOR. Except as otherwise required herein, the Plan
shall be administered by the Board.

          (b)  PROCEDURE FOR GRANTS. All grants of Options hereunder shall be
automatic and nondiscretionary and shall be made strictly in accordance with
the following provisions:

               (i)    No person shall have any discretion to select which
Outside Directors shall be granted Options or to determine the number of Shares
to be covered by Options granted to Outside Directors.

               (ii)   Each Outside Director shall be automatically granted an
Option to purchase Shares (the "First Option") as follows: (A) with respect to
persons who are Outside Directors on the effective date of this Plan, as
determined in accordance with Section 6 hereof, 30,000 shares on such effective
date, and (B) with respect to any other person, 30,000 shares on the date on
which such person first becomes an Outside Director, whether through election
by the shareholders of the Company or appointment by the Board of Directors to
fill a vacancy. The First Option will vest over five years (twenty percent at
the end of the first year and 1/60th for each month thereafter).

               (iii)  After the First Option has been granted to an Outside
Director, such Outside Director shall thereafter be automatically granted an
Option to purchase 6,000 Shares (a "Subsequent Option") on the date of each
Annual Meeting of the Company's shareholders immediately following which such
Outside Director is serving on the Board, provided that, on such date, he or
she shall have served on the Board for at least six (6) months prior to the
date of such Annual Meeting. The Subsequent Option will begin to vest from one
month after the fourth

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anniversary of the date of grant in the amount of 1/12th of the Subsequent
Option for each month thereafter.

               (iv)  Notwithstanding the provisions of subsections (ii) and
(iii) hereof, in the event that a grant would cause the number of Shares
subject to outstanding Options plus the number of Shares previously purchased
upon exercise of Options to exceed to Pool, then each such automatic grant
shall be for that number of Shares determined by dividing the total number of
Shares remaining available for grant by the number of Outside Directors
receiving an Option on such date on the automatic grant date. Any further
grants shall then be deferred until such time, if any, as additional Shares
become available for grant under the Plan through action of the shareholders to
increase the number of Shares which may be issued under the Plan or through
cancellation or expiration of Options previously granted hereunder.

               (v)   Notwithstanding the provisions of subsections (ii) and
(iii) hereof, any grant of an Option made before the Company has obtained
shareholder approval of the Plan in accordance with Section 17 hereof shall be
conditioned upon obtaining such shareholder approval of the Plan in accordance
with Section 17 hereof.

               (vi)  The terms of each First Option granted hereunder shall be
as follows:

                     (1) the First Option shall be exercisable only while the
Outside Director remains a Director of the Company, except as set forth in
Section 9 hereof;

                     (2) the exercise price per Share shall be 100% of the fair
market value per Share on the date of grant of the First Option, determined in
accordance with Section 8 hereof; and

                     (3) the First Option shall be exercisable cumulatively
according to the vesting schedule set out in the Notice of Grant.
Alternatively, at the election of the Optionee, it may be exercised in whole or
in part at any time as to Shares which have not yet vested.

               (vii) The terms of each Subsequent Option granted hereunder
shall be as follows:

                     (1) the Subsequent Option shall be exercisable only while
the Outside Director remains a Director of the Company, except as set forth in
Section 9 hereof;

                     (2) the exercise price per Share shall be 100% of the fair
market value per Share on the date of grant of the Subsequent Option,
determined in accordance with Section 8 hereof; and

                     (3) the Subsequent Option shall be exercisable
cumulatively according to the vesting schedule set out in the Notice of Grant.
Alternatively, at the election of the Optionee, if may be exercised in whole or
in part at any time as to Shares which have not yet vested.

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            (c)     POWERS OF THE BOARD. Subject to the provisions and
restrictions of the Plan, the Board shall have the authority, in its
discretion: (i) to determine, upon review of relevant information and in
accordance with Section 8(b) of the Plan, the fair market value of the Common
Stock; (ii) to determine the exercise price per share of Options to be granted,
which exercise price shall be determined in accordance with Section 8(a) of the
Plan; (iii) to interpret the Plan; (iv) to prescribe, amend and rescind rules
and regulations relating to the Plan; (v) to authorize any person to execute on
behalf of the Company any instrument required to effectuate the grant of an
Option previously granted hereunder; and (vi) to make all other determinations
deemed necessary or advisable for the administration of the Plan.

            (d)     EFFECT OF BOARD'S DECISION. All decisions, determinations
and interpretations of the Board shall be final and binding on all Optionees
and any other holders of any Options granted under the Plan.

            (e)     SUSPENSION OR TERMINATION OF OPTION. If the President or
his or her designee reasonably believes that an Optionee has committed an act
of misconduct, the President may suspend the Optionee's right to exercise any
option pending a determination by the Board of Directors (excluding the Outside
Director accused of such misconduct). If the Board of Directors (excluding the
Outside Director accused of such misconduct) determines an Optionee has
committed an act of embezzlement, fraud, dishonesty, nonpayment of an
obligation owed to the Company, breach of fiduciary duty or deliberate
disregard of the Company rules resulting in loss, damage or injury to the
Company, or if an Optionee makes an unauthorized disclosure of any Company
trade secret or confidential information, engages in any conduct constituting
unfair competition, induces any Company customer to breach a contract with the
Company or induces any principal for whom the Company acts as agent to
terminate such agency relationship, neither the Optionee nor his or her estate
shall be entitled to exercise any option whatsoever. In making such
determination, the Board of Directors (excluding the Outside Director accused
of such misconduct) shall act fairly and shall give the Optionee an opportunity
to appear and present evidence on Optionee's behalf at a hearing before the
Board or a committee of the Board.

     5.     ELIGIBILITY. Options may be granted only to Outside Directors. All
Options shall be automatically granted in accordance with the terms set forth
in Section 4(b) hereof. An Outside Director who has been granted an Option may,
if he or she is otherwise eligible, be granted an additional Option or Options
in accordance with such provisions.

            The Plan shall not confer upon any Optionee any right with respect
to continuation of service as a Director or nomination to serve as a Director,
nor shall it interfere in any way with any rights which the Director or the
Company may have to terminate his or her directorship at any time.

     6.     TERM OF PLAN; EFFECTIVE DATE. The Plan shall become effective on
the effectiveness of the registration statement under the Securities Act of
1933, as amended, relating to the Company's initial public offering of
securities. It shall continue in effect for a term of ten (10) years unless
sooner terminated under Section 13 of the Plan.

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     7.   TERM OF OPTIONS. The term of each Option shall be ten (10) years from
the date of grant thereof.

     8.   EXERCISE PRICE AND CONSIDERATION.

          (a)  EXERCISE PRICE. The per Share exercise price for the Shares to
be issued pursuant to exercise of an Option shall be 100% of the fair market
value per Share on the date of grant of the Option.

          (b)  FAIR MARKET VALUE. The fair market value shall be determined by
the Board; provided, however, that where there is a public market for the
Common Stock, the fair market value per Share shall be the mean of the bid and
asked prices of the Common Stock in the over-the-counter market on the date of
grant, as reported in The Wall Street Journal (or, if not so reported, as
otherwise reported by the National Association of Securities Dealers Automated
Quotation ("Nasdaq") System") or, in the event the Common Stock is traded on
the Nasdaq National Market or listed on a stock exchange, the fair market value
per Share shall be the closing price on such system or exchange on the date of
grant of the Option (or, in the event that the Common Stock is not traded on
such date, on the immediately preceding trading date), as reported in The Wall
Street Journal. With respect to any Options granted hereunder concurrently with
the initial effectiveness of the Plan, the fair market value shall be
determined by the Board.

          (c)  FORM OF CONSIDERATION. The consideration to be paid for the
Shares to be issued upon exercise of an Option shall consist entirely of cash,
check, other Shares of Common Stock having a fair market value on the date of
surrender equal to the aggregate exercise price of the Shares as to which said
Option shall be exercised (which, if acquired from the Company, shall have been
held for at least six months), or any combination of such methods of payment
and/or any other consideration or method of payment as shall be permitted under
applicable corporate law.

     9.   EXERCISE OF OPTION.

          (a)  PROCEDURE FOR EXERCISE: RIGHTS AS A SHAREHOLDER. Any Option
granted hereunder shall be exercisable at such times as set forth in Section
4(b) hereof; provided, however, that no Options shall be exercisable prior to
shareholder approval of the Plan in accordance with Section 17 hereof has been
obtained.

               An Option may not be exercised for a fraction of a Share.

               An Option shall be deemed to be exercised when written notice of
such exercise has been given to the Company in accordance with the terms of the
Option by the person entitled to exercise the Option and full payment for the
Shares with respect to which the Option is exercised has been received by the
Company. Full payment may consist of any consideration and method of payment
allowable under Section 8(c) of the Plan. Until the issuance (as evidenced by
the appropriate entry on the books of the Company or of a duly authorized
transfer agent of the Company) of the stock certificate evidencing such Shares,
no right to vote or receive dividends or any other rights as a shareholder shall
exist with respect to the Optioned Stock, notwithstanding

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the exercise of the Option. A share certificate for the number of Shares so
acquired shall be issued to the Optionee as soon as practicable after exercise
of the Option. No adjustment will be made for a dividend or other right for
which the record date is prior to the date the stock certificate is issued,
except as provided in Section 11 of the Plan.

          Exercise of an Option in any manner shall result in a decrease in the
number of Shares which thereafter may be available, both for purposes of the
Plan and for sale under the Option, by the number of Shares as to which the
Option is exercised.

     (b)  TERMINATION OF STATUS AS A DIRECTOR. If an Outside Director ceases to
serve as a Director, he or she may, but only within ninety (90) days after the
date he or she ceases to be a Director of the Company, exercise his or her
Option to the extent that he or she was entitled to exercise it at the date of
such termination. Notwithstanding the foregoing, in no event may the Option be
exercised after its term set forth in Section 7 has expired. To the extent that
such Outside Director was not entitled to exercise an Option at the date of
such termination, or does not exercise such Option (which he or she was
entitled to exercise) within the time specified herein, the Option shall
terminate.

     (c)  DISABILITY OF OPTIONEE. Notwithstanding Section 9(b) above, in the
event a Director is unable to continue his or her service as a Director with
the Company as a result of his or her total and permanent disability (as
defined in Section 22(e)(3) of the Code), he or she may, but only within six
(6) months (or such other period of time not exceeding twelve (12) months as is
determined by the Board) from the date of such termination, exercise his or her
Option to the extent he or she was entitled to exercise it at the date of such
termination. Notwithstanding the foregoing, in no event may the Option be
exercised after its term set forth in Section 7 has expired. To the extent that
he or she was not entitled to exercise the Option at the date of termination,
or if he or she does not exercise such Option (which he or she was entitled to
exercise) within the time specified herein, the Option shall terminate.

     (d)  DEATH OF OPTIONEE. In the event of the death of an Optionee:

          (i)  During the term of the Option who is, at the time of his or her
death, a Director of the Company and who shall have been in Continuous Status
as a Director since the date of grant of the Option, the Option may be
exercised, at any time within six (6) months following the date of death, by
the Optionee's estate or by a person who acquired the right to exercise the
Option by bequest or inheritance, but only to the extent of the right to
exercise that would have accrued had the Optionee continued living and remained
in Continuous Status as Director for six (6) months (or such lesser period of
time as is determined by the Board) after the date of death. Notwithstanding
the foregoing, in no event may the Option be exercised after its term set forth
in Section 7 has expired.

          (ii) Three (3) months after the termination of Continuous Status as a
Director, the Option may be exercised, at any time within six (6) months
following the date of death, by the Optionee's estate or by a person who
acquired the right to exercise the Option by bequest or inheritance, but only
to the extent of the right to exercise that had accrued at the date of

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termination. Notwithstanding the foregoing, in no event may the option be
exercised after its term set forth in Section 7 has expired.

     10.  NONTRANSFERABILITY OF OPTIONS. The Option may not be sold, pledged,
assigned, hypothecated, transferred, or disposed of in any manner other than by
will or by the laws of descent or distribution or pursuant to a qualified
domestic relations order (as defined by the Code or the rules thereunder). The
designation of a beneficiary by an Optionee does not constitute a transfer. An
Option may be exercised during the lifetime of an Optionee only by the Optionee
or a transferee permitted by this Section.

     11.  ADJUSTMENTS UPON CHANGES IN CAPITALIZATION; CORPORATE TRANSACTIONS.

          (a)  ADJUSTMENT. Subject to any required action by the shareholders
of the Company, the number of shares of Common Stock covered by each
outstanding Option, and the number of shares of Common Stock which have been
authorized for issuance under the Plan but as to which no Options have yet been
granted or which have been returned to the Plan upon cancellation or expiration
of an Option, as well as the price per share of Common Stock covered by each
such outstanding Option, shall be proportionately adjusted for any increase or
decrease in the number of issued shares of Common Stock resulting from a stock
split, reverse stock split, stock dividend, combination or reclassification of
the Common Stock, or any other increase or decrease in the number of issued
shares of Common Stock effected without receipt of consideration by the
Company; provided, however, that conversion of any convertible securities of
the Company shall not be deemed to have been "effected without receipt of
consideration." Such adjustment shall be made by the Board, whose determination
in that respect shall be final, binding and conclusive. Except as expressly
provided herein, no issuance by the Company of shares of stock of any class, or
securities convertible into shares of stock of any class, shall affect, and no
adjustment by reason thereof shall be made with respect to, the number or price
of shares of Common Stock subject to an Option.

          (b)  CORPORATE TRANSACTIONS. In the event of (i) a dissolution or
liquidation of the Company, (ii) a sale of all or substantially all of the
Company's assets, (iii) a merger or consolidation in which the Company is not
the surviving corporation, or (iv) any other capital reorganization in which
more than fifty percent (50%) of the shares of the Company entitled to vote are
exchanged, the Company shall give to the Eligible Director, at the time of
adoption of the plan for liquidation, dissolution, sale, merger, consolidation
or reorganization, either a reasonable time thereafter within which to exercise
the Option, including Shares as to which the Option would not be otherwise
exercisable, prior to the effectiveness of such liquidation, dissolution, sale,
merger, consolidation or reorganization, at the end of which time the Option
shall terminate, or the right to exercise the Option, including Shares as to
which the Option would not be otherwise exercisable (or receive a substitute
option with comparable terms), as to an equivalent number of shares of stock of
the corporation succeeding the Company or acquiring its business by reason of
such liquidation, dissolution, sale, merger, consolidation or reorganization.

     12.  TIME OF GRANTING OPTIONS. The date of grant of an Option shall, for
all purposes, be the date determined in accordance with Section 4(b) hereof.
Notice of the determination shall

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be given to each Outside Director to whom an Option is so granted within a
reasonable time after the date of such grant.

        13.     AMENDMENT AND TERMINATION OF THE PLAN.

                (a)     AMENDMENT AND TERMINATION. The Board may amend or
terminate the Plan from time to time in such respects as the Board may deem
advisable; provided that, to the extent necessary and desirable to comply with
Rule 16b-3 under the Exchange Act (or any other applicable law or regulation),
the Company shall obtain approval of the shareholders of the Company to Plan
amendments to the extent and in the manner required by such law or regulation.
Notwithstanding the foregoing, the provisions set forth in Section 4 of this
Plan (and any other Sections of this Plan that affect the formula award terms
required to be specified in this Plan by Rule 16b-3) shall not be amended more
than once every six months, other than to comport with changes in the Code, the
Employee Retirement Income Security Act of 1974, as amended, or the rules
thereunder.

                (b)     EFFECT OF AMENDMENT OR TERMINATION. Any such amendment
or termination of the Plan that would impair the rights of any Optionee shall
not affect Options already granted to such Optionee and such Options shall
remain in full force and effect as if this Plan had not been amended or
terminated, unless mutually agreed otherwise between the Optionee and the
Board, which agreement must be in writing and signed by the Optionee and the
Company.

        14.     CONDITIONS UPON ISSUANCE OF SHARES. Shares shall not be issued
pursuant to the exercise of an Option unless the exercise of such Option and the
issuance and delivery of such Shares pursuant thereto shall comply with all
relevant provisions of law, including, without limitation, the Securities Act of
1933, as amended, the Exchange Act, the rules and regulations promulgated
thereunder, state securities laws, and the requirements of any stock exchange
upon which the Shares may then be listed, and shall be further subject to the
approval of counsel for the Company with respect to such compliance. As a
condition to the exercise of an Option, the Company may require the person
exercising such Option to represent and warrant at the time of any such exercise
that the Shares are being purchased only for investment and without any present
intention to sell or distribute such Shares, if, in the opinion of counsel for
the Company, such a representation is required by any of the aforementioned
relevant provisions of law.

        15.     RESERVATION OF SHARES. The Company, during the term of this
Plan, will at all times reserve and keep available such number of Shares as
shall be sufficient to satisfy the requirements of the Plan. Inability of the
Company to obtain authority from any regulatory body having jurisdiction, which
authority is deemed by the Company's counsel to be necessary to the lawful
issuance and sale of any Shares hereunder, shall relieve the Company of any
liability in respect of the failure to issue or sell such Shares as to which
such requisite authority shall not have been obtained.

        16.     OPTION AGREEMENT. Options shall be evidenced by written
agreements in such form as the Board shall approve.

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     17.  SHAREHOLDER APPROVAL. Continuance of the Plan shall be subject to
approval by the shareholders of the Company at or prior to the first annual
meeting of shareholders held subsequent to the granting of an Option hereunder.
If such shareholder approval is obtained at a duly held shareholders' meeting,
it may be obtained by the affirmative vote of the holders of a majority of the
outstanding shares of the Company present or represented and entitled to vote
thereon. If such shareholder approval is obtained by written consent, it may be
obtained by the written consent of the holders of a majority of the outstanding
shares of the Company. Options may be granted, but not exercised, before such
shareholder approval.

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                         MARVELL TECHNOLOGY GROUP LTD.

                       1997 DIRECTORS' STOCK OPTION PLAN

                         NOTICE OF STOCK OPTION GRANTS

     Unless otherwise defined herein, the terms defined in the Plan shall have
the same defined meanings in this Stock Option Agreement.

1.   NOTICE OF STOCK OPTION GRANT

Optionee's Name and Address

(OptioneeName)
(Address)
(City), (State) (ZipCode)

     You have been granted an option to purchase Common Stock of the Company,
subject to the terms and conditions of the Plan and this Stock Option
Agreement, as follows:

     Grant Number                            (GrantNumber)
                                        -------------------------------

     Date of Grant                           (DateOfGrant)
                                        -------------------------------

     Vesting Commencement Date               (VestingCommenceDate)
                                        -------------------------------

     Exercise Price Per Share                (ExercisePricePerShare)
                                        -------------------------------

     Total Number of Shares Granted          (TotalNumberOfShares)
                                        -------------------------------

     Total Exercise Price                    (TotalExercisePrice)
                                        -------------------------------

     Type of Option:                    Nonstatutory Stock Option

     Term/Expiration Date:                   (TermExpirationDate)
                                        -------------------------------

Vesting Schedule:

     This Option may be exercised immediately, in whole or in part, conditioned
upon Optionee entering into a Restricted Stock Purchase Agreement with respect
to any unvested Option Shares. The Shares subject to this Option shall vest
and/or be released from the

<PAGE>   11
Company's repurchase option, as set forth in the Restricted Stock Purchase
Agreement, in accordance with the following schedule.

     For the First Options: Twenty percent (20%) of the Shares subject to the
Option shall vest twelve months after the Vesting Commencement Date, and an
additional one-sixtieth (1/60th) of the Shares subject to the Option shall vest
at the end of each month thereafter, so that all of the Shares shall be vested
five (5) years after the Vesting Commencement Date.

     For the Subsequent Options: One-twelfth (1/12th) of the Shares subject to
the Option shall vest one month after the fourth anniversary of the date of
grant, and an additional one-twelfth (1/12th) of the Shares subject to the
Option shall vest at the end of each month thereafter, so that all of the
Shares shall be vested five (5) years after the Vesting Commencement Date.

Termination Period:

     This Option may be exercised for 90 days after termination of Optionee's
Continuous Status as an Outside Director, or such longer period as may be
applicable upon death or Disability of Optionee's provided in the Plan, but in
no event later than the Expiration Date as provided above.

     By your signature and the signature of the Company's representative below,
you and the Company agree that this option is granted under and governed by the
terms and conditions of the 1997 Directors' Stock Option Plan and the
Nonstatutory Stock Option Agreement, all of which are attached and made a part
of this document.

OPTIONEE:                                MARVELL TECHNOLOGY GROUP, LTD

________________________________________ By: ___________________________________
Signature

________________________________________ Title: ________________________________
Print Name

                                      -2-<PAGE>   1
                                                                    EXHIBIT 10.3

                          MARVELL TECHNOLOGY GROUP LTD.

                        2000 EMPLOYEE STOCK PURCHASE PLAN

     1.   Purpose.

     This Plan is intended to allow Employees of the Company and its Designated
Subsidiaries to purchase Common Stock through accumulated Payroll deductions.

     2.   Defined Terms.

     The meanings of defined terms (generally, capitalized terms) in this Plan
are provided in Section 23 ("Glossary").

     3.   Eligibility.

          (a)  Participation. Any person who is an Employee on an Offering Date
shall be eligible to participate in this Plan during the corresponding Offering
Period.

          (b)  No Participation by Five-Percent Stockholders. Notwithstanding
Section 3(a), an Employee shall not participate in this Plan during an Offering
Period if immediately after the grant of a Purchase Right on the Offering Date,
the Employee (or any other person whose stock would be attributed to the
Employee under Section 424(d) of the Code) would own stock possessing five
percent or more of the total combined voting power or value of all classes of
stock of the Company or of any Subsidiary. For this purpose, an Employee is
treated as owning stock that he or she could purchase by exercise of Purchase
Rights or other options.

     4.   Offering Periods.

     Except as otherwise determined by the Administrator:

          (a)  the first Offering Period under this Plan shall begin on the
first business day before the effective date of a firmly underwritten initial
public offering of Common Stock and shall end on the last trading day of January
of the second succeeding calendar year;

          (b)  a new Offering Period shall begin on the first business day of
each February and August while this Plan is in effect;

          (c)  the duration of each Offering Period (other than the first
Offering Period) shall be 24 months (measured from the first business day of the
first month to the last business day of the 24th month); and

          (d)  an Offering Period shall terminate on the first date that no
Participant is enrolled in it.

     5.   Participation.

<PAGE>   2

          (a)  An Employee may become a Participant in this Plan by completing a
subscription agreement, in such form as the Administrator may approve from time
to time, and delivering it to the Administrator by 1 p.m. Pacific time on the
applicable Offering Date, unless another time for filing the subscription
agreement is set by the Administrator for all Employees with respect to a given
Offering Period. The subscription agreement shall authorize Payroll deductions
pursuant to this Plan and shall have such other terms as the Administrator may
specify from time to time.

          (b)  At the end of an Offering Period, each Participant in the
Offering Period who remains an Employee shall be automatically enrolled in the
next succeeding Offering Period (a "Re-enrollment") unless, in a manner and at a
time specified by the Administrator, but in no event later than 1 p.m. Pacific
time on the Offering Date of such succeeding Offering Period, the Participant
notifies the Administrator in writing that the Participant does not wish to be
re-enrolled. Re-enrollment shall be at the withholding percentage specified in
the Participant's most recent subscription agreement. No Participant shall be
automatically re-enrolled whose participation has terminated by operation of
Section 10.

          (c)  If the fair market value of the Common Stock on any Offering Date
is less it was on the first day of a then-concurrent Offering Period, each
Participant in the concurrent Offering Period shall automatically be withdrawn
from such concurrent Offering Period and shall become a Participant in the
commencing Offering Period. Participation shall be at the withholding percentage
specified in the Participant's most recent (as of 1 p.m. Pacific time on the
relevant Offering Date) subscription agreement. No Participant shall be
automatically re-enrolled whose participation in this Plan has terminated by
operation of Section 10.

     6.   Payroll Deductions.

          (a)  Payroll deductions under this Plan shall be in whole percentages,
from a minimum of 1% up to a maximum (not to exceed 20%) established by the
Administrator from time to time, as specified by the Participant in his or her
subscription agreement in effect on the first day of an Offering Period. Payroll
deductions for a Participant shall begin with the first payroll payment date of
the Offering Period and shall end with the last payroll payment date of the
Offering Period, unless sooner terminated by the Participant as provided in
Section 10.

          (b)  A Participant's Payroll deductions shall be credited to his or
her account under this Plan. A Participant may not make any additional payments
into his or her account.

          (c)  A Participant may reduce his or her Payroll deductions by any
whole percentage (but not below 1%) at any time during an Offering Period,
effective 15 days after the Participant files with the Administrator a new
subscription agreement authorizing the change. A Participant may change his or
her Payroll deductions during an Offering Period, effective the first business
day after a Purchase Date, by delivering a new subscription agreement
authorizing the change to the Administrator by 1 p.m. Pacific time on the
effective date of the increase.

     7.   Purchase Rights.

                                       2

<PAGE>   3

         (a) Grant of Purchase Rights. On the Offering Date of each Offering
Period, the Participant shall be granted a Purchase Right to purchase during the
Offering Period the number of shares of Common Stock determined by dividing (i)
$25,000 multiplied by the number of (whole or part) calendar years in the
Offering Period by (ii) the fair market value of a share of Common Stock on the
Offering Date.

          (b)  Terms of Purchase Rights. Except as otherwise determined by the
Administrator, each Purchase Right shall have the following terms:

               (i)   The per-share price of the shares subject to a Purchase
          Right shall be 85% of the lower of the fair market values of a share
          of Common Stock on (a) the Offering Date on which the Purchase Right
          was granted and (b) the Purchase Date. The fair market value of the
          Common Stock on a given date shall be the closing price as reported in
          the Wall Street Journal; provided, however, that if there is no public
          trading of the Common Stock on that date, then fair market value shall
          be determined by the Administrator in its discretion.

               (ii)  Payment for shares purchased by exercise of Purchase Rights
          shall be made only through Payroll deductions under Section 6.

               (iii) Upon purchase or disposition of shares acquired by exercise
          of a Purchase Right, the Participant shall pay, or make provision
          satisfactory to the Administrator for payment of, all tax (and
          similar) withholdings that the Administrator determines, in its
          discretion, are required due to the acquisition or disposition,
          including without limitation any such withholding that the
          Administrator determines in its discretion is necessary to allow the
          Company and its Subsidiaries to claim tax deductions or other benefits
          in connection with the acquisition or disposition.

               (iv)  During his or her lifetime, a Participant's Purchase Right
          is exercisable only by the Participant.

               (v)   Purchase Rights will in all respects be subject to the
          terms and conditions of this Plan, as interpreted by the Administrator
          from time to time.

     8.   Purchase Dates; Purchase of Shares; Refund of Excess Cash.

          (a)  The Administrator shall establish one or more Purchase Dates for
each Offering Period. Unless otherwise determined by the Administrator, the last
trading day of each January and July in an Offering Period shall be a Purchase
Date.

          (b)  Except as otherwise determined by the Administrator, and subject
to subsection (c), below, each then-outstanding Purchase Right shall be
exercised automatically on each Purchase Date, following addition to the
Participant's account of that day's Payroll deductions, to purchase

                                       3

<PAGE>   4

the maximum number of full shares of Common Stock at the applicable price using
the Participant's accumulated Payroll deductions.

          (c)  If on a Purchase Date the fair market value of the Common Stock
is less than 75% of the fair market value of the Common Stock on the immediately
preceding Purchase Date (whether or not such preceding Purchase Date is in the
same Offering Period) (the "Benchmark Date"), then (except as otherwise
determined by the Administrator):

               (i)   the maximum number of shares that a Participant may
          purchase on the Purchase Date shall be determined by multiplying the
          fair market value of the Common Stock on the Benchmark Date by 0.6375
          and then dividing the Participant's accumulated Payroll deductions by
          the result;

               (ii)  a maximum number of shares established pursuant to the
          clause (i) shall remain the maximum number of shares purchasable by a
          Participant on any subsequent Purchase Date until the Purchase Date on
          which the fair market value of the Common Stock is at least 75% of the
          fair market value of the Common Stock on the Benchmark Date; and

               (iii) notwithstanding the foregoing, during the initial Offering
          Period under this Plan, the Benchmark Date shall be date of the
          beginning such Offering Period.

          (d)  The shares purchased upon exercise of a Purchase Right shall be
deemed to be transferred to the Participant on the Purchase Date.

     9.   Registration and Delivery of Share Certificates.

          (a)  Shares purchased by a Participant under this Plan will be
registered in the name of the Participant, or in the name of the Participant and
his or her spouse, or in the name of the Participant and joint tenant(s) (with
right of survivorship), as designated by the Participant.

          (b)  As soon as administratively feasible after each Purchase Date,
the Company shall deliver to the Participant a certificate representing the
shares purchased upon exercise of a Purchase Right. If approved by the
Administrator in its discretion, the Company may instead (i) deliver a
certificate (or equivalent) to a broker for crediting to the Participant's
account or (ii) make a notation in the Participant's favor of non-certificated
shares on the Company's stock records.

     10.  Withdrawal; Termination of Employment.

          (a)  A Participant may withdraw all, but not less than all, the
Payroll deductions credited to his account under this Plan before a Purchase
Date by giving written notice to the Administrator, in a form the Administrator
prescribes from time to time, at least 15 days before the Purchase Date. Payroll
deductions will then cease as to the Participant, no purchase of shares

                                       4

<PAGE>   5

will be made for the Participant on the Purchase Date, and all Payroll
deductions then credited to the Participant's account will be refunded promptly.

          (b)  Upon termination of a Participant's Continuous Employment for any
reason, including retirement or death, all Payroll deductions credited to the
Participant's account will be promptly refunded to the Participant or, in the
case of death, to the person or persons entitled thereto under Section 14, and
the Participant's Purchase Right will automatically terminate.

          (c)  A Participant's withdrawal from an offering will not affect the
Participant's eligibility to participate in a succeeding offering or in any
similar plan that may be adopted by the Company.

     11.  Use of Funds; No Interest.

     Amounts withheld from Participants under this Plan shall constitute general
funds of the Company, may be used for any corporate purpose, and need not be
segregated from other funds. No interest shall accrue on a Participant's Payroll
deductions.

     12.  Number of Shares Reserved.

          (a)  The following numbers of shares of Common Stock are reserved for
issuance under this Plan, and such number may be issued at any time before
termination of this Plan:

               (i)  Beginning the date of approval of this Plan by the
          stockholders of the Company, 1,000,000 shares of Common Stock; and

               (ii) Beginning the first business day of each calendar year
          starting January 1, 2001 or after, the lesser of an additional (A)
          500,000 shares of Common Stock, (B) 0.75% of the outstanding shares of
          capital stock on such date, or (C) an amount determined by the Board.

          (b)  If the total number of shares that would otherwise be subject to
Purchase Rights granted on an Offering Date exceeds the number of shares then
available under this Plan (after deduction of all shares for which Purchase
Rights have been exercised or are then exercisable), the Administrator shall
make a pro-rata allocation of the available shares in a manner that it
determines to be as uniform and equitable as practicable. In such event, the
Administrator shall give written notice of the reduction and allocation to each
Participant.

          (c)  The Administrator may, in its discretion, transfer shares
reserved for issuance under this Plan into a plan or plans of similar terms, as
approved by the Board, providing for the purchase of shares of Common Stock to
employees of Subsidiaries designated by the Board that do not (or do not
thereafter) participate in this Plan. Such additional plans may, without
limitation, provide for variances from the terms of this Plan to take into
account special circumstances (such as foreign legal restrictions) affecting the
employees of the designated Subsidiaries.

                                       5

<PAGE>   6

     13.  Administration.

     This Plan shall be administered by the Board or by such directors,
officers, and employees of the Company as the Board may select from time to time
(the "Administrator"). All costs and expenses incurred in administering this
Plan shall be paid by the Company, provided that any taxes applicable to an
Employee's participation in this Plan may be charged to the Employee by the
Company. The Administrator may make such rules and regulations as it deems
necessary to administer this Plan and to interpret any provision of this Plan.
Any determination, decision, or action of the Administrator in connection with
the construction, interpretation, administration, or application of this Plan or
any right granted under this Plan shall be final, conclusive, and binding upon
all persons, and no member of the Administrator shall be liable for any such
determination, decision, or action made in good faith.

     14.  Designation of Beneficiary.

          (a)  A Participant may file a written designation of a beneficiary who
is to receive any shares and cash, if any, from the Participant's account under
this Plan in the event of the Participant's death.

          (b)  A designation of beneficiary may be changed by the Participant at
any time by written notice. In the event of the death of a Participant, and in
the absence of a beneficiary validly designated under this Plan who is living at
the time of the Participant's death, the Administrator shall deliver such shares
and/or cash to the executor or administrator of the Participant's estate, or if
no such executor or administrator has been appointed (to the Administrator's
knowledge), the Administrator, in its discretion, may deliver such shares and/or
cash to the spouse or to any one or more dependents or relatives of the
Participant or, if no spouse, dependent, or relative is known to the
Administrator, then to such other person as the Administrator may designate.

     15.  Transferability.

     Neither Payroll deductions credited to a Participant's account nor any
rights with regard to the exercise of a Purchase Right or to receive shares
under this Plan may be assigned, transferred, pledged, or otherwise disposed of
in any way (other than by will, the laws of descent and distribution, or as
provided in Section 14) by the Participant. Any such attempt at assignment,
transfer, pledge, or other disposition shall be without effect, except that the
Administrator may treat such act as an election to withdraw funds in accordance
with Section 10.

     16.  Reports.

     Individual accounts will be maintained for each Participant in this Plan.
Statements of account will be given to participating Employees promptly
following each Purchase Date, setting forth the amounts of Payroll deductions,
per-share purchase price, number of shares purchased, and remaining cash
balance, if any.

                                       6

<PAGE>   7

     17.  Adjustments upon Changes in Capitalization.

          (a)  Subject to any required action by the stockholders of the
Company, the number of shares of Common Stock covered by each unexercised
Purchase Right and the number of shares of Common Stock authorized for issuance
under this Plan but not yet been placed under a Purchase Right (collectively,
the "Reserves"), as well as the price per share of Common Stock covered by each
unexercised Purchase Right, shall be proportionately adjusted for any change in
the number of issued shares of Common Stock resulting from a stock split,
reverse stock split, stock dividend, combination or reclassification of the
Common Stock, or any change in the number of shares of Common Stock effected
without receipt of consideration by the Company (not counting shares issued upon
conversion of convertible securities of the Company as "effected without receipt
of consideration"). Such adjustment shall made by the Board and shall be final,
binding, and conclusive. Except as expressly provided herein, no issue by the
Company of shares of stock of any class, or securities convertible into shares
of stock of any class, shall affect, and no consequent adjustment shall be made
with respect to, the number or price of shares of Common Stock subject to a
Purchase Right.

          (b)  In the event of the proposed dissolution or liquidation of the
Company, the then-current Offering Period will terminate immediately before the
consummation of the proposed action, unless otherwise provided by the Board. In
the event of a proposed sale of all or substantially all of the Company's
assets, or the merger of the Company with or into another corporation (if the
Company's stockholders own less than 50% of the total outstanding voting power
in the surviving entity or a parent of the surviving entity after the merger),
each Purchase Right under this Plan shall be assumed or an equivalent purchase
right shall be substituted by the successor corporation or a parent or
subsidiary of the successor corporation, unless the successor corporation does
not agree to assume the Purchase Rights or to substitute equivalent purchase
rights, in which case the Board may, in lieu of such assumption or substitution,
accelerate the exercisability of Purchase Rights and allow Purchase Rights to be
exercisable as to shares as to which they would not otherwise be exercisable, on
terms and for a period that the Board determines in its discretion. To the
extent that the Board accelerates exercisability of Purchase Rights as described
above, it shall promptly so notify all Participants in writing.

          (c)  The Board may, in its discretion, also make provision for
adjusting the Reserves, as well as the price per share of Common Stock covered
by each outstanding Purchase Right, if the Company effects one or more
reorganizations, recapitalizations, rights offerings, or other increases or
reductions of shares of its outstanding Common Stock, or if the Company
consolidates with or merges into any other corporation, in a transaction not
otherwise covered by this Section 17.

     18.  Amendment or Termination.

          (a)  The Board may at any time terminate or amend this Plan. No
amendment may be made without prior approval of the stockholders of the Company
(obtained in the manner described in Section 20) if it would increase the number
of shares that may be issued under this Plan.

                                       7

<PAGE>   8

          (b)  The Board may elect to terminate any or all outstanding Purchase
Rights at any time, except to the extent that exercisability of such Purchase
Rights has been accelerated pursuant to Section 17(b). If this Plan is
terminated, the Board may also elect to terminate Purchase Rights upon
completion of the purchase of shares on the next Purchase Date or to permit
Purchase Rights to expire in accordance with their terms (with participation to
continue through such expiration dates). If Purchase Rights are terminated
before expiration, any funds contributed to this Plan that have not been used to
purchase shares shall be refunded to Participants as soon as administratively
feasible.

     19.  Notices.

     All notices or other communications by a Participant to the Company or the
Administrator under or in connection with this Plan shall be deemed to have been
duly given when received in the form specified by the Administrator at the
location, or by the person, designated by the Administrator for that purpose.

     20.  Stockholder Approval.

     This Plan shall be submitted to the stockholders of the Company for their
approval within 12 months after the date this Plan is adopted by the Board.

     21.  Conditions upon Issuance of Shares.

          (a)  Shares shall not be issued with respect to a Purchase Right
unless the exercise of such Purchase Right and the issuance and delivery of such
shares pursuant thereto complies with all applicable provisions of law, domestic
or foreign, including, without limitation, the Securities Act of 1933, as
amended, the Securities Exchange Act of 1934, as amended, the rules and
regulations promulgated thereunder, and the requirements of any stock exchange
upon which the shares may then be listed, and shall be further subject to the
approval of counsel for the Company with respect to such compliance.

          (b)  As a condition to the exercise of a Purchase Right, the Company
may require the person exercising such Purchase Right to represent and warrant
at the time of any such exercise that the shares are being purchased only for
investment and without any present intention to sell or distribute such shares
if, in the opinion of counsel for the Company, such a representation is required
by any of the aforementioned applicable provisions of law.

     22.  Term of Plan.

     This Plan shall become effective upon the earlier of its adoption by the
Board or its approval by the stockholders of the Company as described in Section
20. It shall continue in effect for a term of 20 years unless sooner terminated
under Section 18.

     23.  Glossary. The following definitions apply for purposes of this Plan:

                                       8

<PAGE>   9

          (a)  "Administrator" means the Board or the persons appointed by the
Board to administer this Plan pursuant to Section 13.

          (b)  "Board" means the Board of Directors of the Company.

          (c)  "Code" means the Internal Revenue Code of 1986, as amended.

          (d)  "Common Stock" means the Common Stock of the Company.

          (e)  "Company" means Marvell Technology Group Ltd., a Bermuda
               corporation.

          (f)  "Continuous Employment" means the absence of any interruption or
termination of service as an Employee. Continuous Employment shall not be
considered interrupted in the case of a leave of absence agreed to in writing by
the Company, provided that either (i) the leave does not exceed 90 days or (ii)
re-employment upon expiration of the leave is guaranteed by contract or statute.

          (g)  "Designated Subsidiaries" means the Subsidiaries that have been
designated by the Board from time to time in its sole discretion to participate
in this Plan.

          (h)  "Employee" means any person, including an officer, who is
customarily employed for at least 20 hours per week and five months per year by
the Company or one of its Designated Subsidiaries. Whether an individual
qualifies as an Employee shall be determined by the Administrator, in its sole
discretion, by reference to Section 3401(c) of the Code and the regulations
promulgated thereunder; unless the Administrator makes a contrary determination,
the Employees of the Company shall, for all purposes of this Plan, be those
individuals who satisfy the customary employment criteria set forth above and
are carried as employees by the Company or a Designated Subsidiary for regular
payroll purposes.

          (i)  "Offering Date" means the first business day of an Offering
Period.

          (k)  "Offering Period" means a period established by the Administrator
pursuant to Section 4 during which Payroll deductions are accumulated from
Participants and applied to the purchase of Common Stock.

          (l)  "Participant" means an Employee who has elected to participate in
this Plan pursuant to Section 5.

          (m)  "Payroll" means all regular, straight-time gross earnings,
exclusive of payments for overtime, shift premium, incentive compensation or
payments, bonuses, and commissions.

          (m)  "Plan" means this Marvell Technology Group Ltd. 2000 Employee
Stock Purchase Plan.

                                       9

<PAGE>   10

          (n)  "Purchase Date" means such business days during each Offering
Period as may be established by the Administrator for the purchase of Common
Stock pursuant to Section 8.

          (o)  "Purchase Right" means a right to purchase Common Stock granted
pursuant to Section 7.

          (p)  "Subsidiary" means, from time to time, any corporation, domestic
or foreign, of which not less than 50% of the voting shares are held by the
Company or another Subsidiary of the Company.

                                       10

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